83-03-01MOUND CITY COUNCIL
Regular Meeting
Tuesday, March l, 1983
7:30 P.M. - City Hall
1.
2.
3.
CITY OF MOUND
AGENDA
Mound, Minnesota
Minutes of February 22, 1983, Regular Meeting
Water Report Update
Request from Minnetonka Bass Club for Bass Contest -.
June 11, 1983
4. Application for Bingo Permits
a. American Legion Post #398
b. Mound Fire Dept. Auxiliary
5. Renewal of Cigarette Licenses
6. Renewal of Garbage & Refuse Licenses
7. Agreement with School Dist. #277 - RE: Summer Lifeguards
8. 1982 Building Department Report - Verbal Report
9. Payment of Bi'lls
10. Comments & Suggestions from Citizens Present
ll. INFORMATION/MISCELLANEOUS
A. Tonka Corporation Earnings - 1983
B. Article - "The Molting of America"
C. Copy of Survey to be sent out to all Building Permit
holders in 1982
D. Letter from Ehlers & Associates
416-423
424-.436
Pg. 437
Pg, 438
Pg. 439
Pg. 440-441
Pg. 440-441
Pg. 442-.451
Pg. 452-456
Pg. 457
Pg, 458
Pg. 459-465
Pg. 466-468
Pg. 469-470
Page 415
REGULAR MEETING
OF THE
CITY COUNC II.
31
February 22, 1983
Pursuant to due call and notice thereof, a regular meeting of the City Council
of the City of Mound, Hennepin County, Minnesota, was held at 5341Maywood Road
in said City on February 22, 1983,'at 7:30 P.M.
Those present were: Mayor Bob Polston, Councilmembers Gary Paulsen, Russ
Peterson and Gordon Swenson. Councilmember Pinky Charon was absent and
excused. Also present'were: City Manager Jon Elam, City Clerk Fran Clark
and the following interested citizens: Start Drahos,'John Scherven, Gary.
Thomton, Mr. & Mrs. John Wagman.
The Mayor opened the meeting and welcomed the people in attendance.
MINUTES
The Minutes Q~ the February 15, 1983, Special Meeting were presented for
consideration. Peterson moved and Paul.sen.seconded a motion to approve
the Minutes of the February 15, 1983, Special Meeting, as presented. The
vote was unanimously'in favor. Motion carried.
PUBLIC HEARINGS
A. PROPOSED USE OF 1983-84 HUD COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
The City Manager outl'ined the program objectives for the $92,822 in the
Community Development BlOck'Grant as follows:
Downtown Improvement Financing
(including Tax Increment Study Costs) $25,000
Housing Rehabilitation Grants 20,OOO
Tonka Plant Reuse Feasibility Study (Phase II) 25,000
Westonka Senior Citizens Housing Program 5,000
Special Assessments 5,822
Downtown Commercial Rehabilitation Design Grants 7,OO0'
Administration 5,000
$92,822
He then went over how the use of the 1982-83 fundswer.e revised.
Councilmember Swenson stated that he is opposed to spending taxpayers
money on Tonka Toys because he feels that after we do all the work
Tonka will just go off and do what they want anyway.
The Mayor opened the public hearing and asked if there were additional
suggestions from the citizens.present on the purposed uses. There were
none. The Mayor closed the publi, c hearing.
Peterson moved and Paulsen seconded the following resolution:
RESOLUTION #83-26
RESOLUTION TO APPROVE THE PROPOSED USES OF THE
1983-84 HUD COMMUNITY DEVELOPMENT BLOCK GRANT
FUNDS AS SUBMITTED
A roll call vote was 3 in favor with Councilmember Swenson voting nay.
Motion carried.
32
February 22, 1983
B. DELINQUENT UTILITY BILLS
Mayor Polston opened.the public hearing and asked for any comments.
from the public on the delinquent utility bills. There were none.
The Mayor closed the public hearing.
Swenson moved and Peterson seconded the following resolution.
RESOLUTION #83-27
RESOLUTION APPROVING THE DELINQUENT UTILITY BILLS
IN THE AMOUNT OF $3,071,4] AND AUTHORIZING THE
STAFF TO SHUTOFF WATER SERVICE FOR THESE ACCOUNTS
The vote was unanimously in favor. Motion carried.
PLANNING COMMISSION ITEM
CASE #82-105 - JON SCHERVEN - 2271 COMMERCE BLVD. - LOT SIZE VARIANCE -
PID #14-117;~4 44 0039
The City Manager explained that Mr. Scherven is asking fo~ a variance because
in the B-1 District under the present zoning ordinance, improvements cannot be
made on lots of less than 7500 square feet. The lot is approximately 4960
square feet. The Planning Commission. is recommending approval.
Mr. Scherven and Mr. Thomton were present with drawings for the renovation
of the building. Mr. Scherven explained that the renovation would be done
in 3 phases. The first phase would include moving the entrance to the north.
and creating a mall type of concept and moving his sports shop into the
building. The second phase would be to develop the other rental area in
the building and the third phase would be a parking area behind the building
and possibly an addition.
Swenson moved and Paulsen seconded the following resolution.
RESOLUTION #83-28 RESOLUTION TO CONCUR WITH THE pLANNING COMMISSION
RECOMMENDATION TO APPROVE THE LOT SIZE VARIANCE
AS REQUESTED FOR PART OF LOT 52, LYNWOLD PARK
ADDITION (PID #14-117-24 44 0039)
The vote was unanimously in favor. Motion car.ried.
COMMENTS & SUGGESTIONS FROM CITIZENS PRESENT
Mayor Polston asked for any comments or suggestions from citizens present.
John Wagman, 5469 Bartlett Blvd. submitted the following statement:
"It has come to our attention that on Tuesday, February 15, 1983, Mr. Paul Pond, a member of a Lake Minnetonka Task Force, urged
the Mound City Council to take immediate action to let it be known
that they express interest in the use of Lost Lake as a public
access to Lake Minnetonka, through the Lost Lake channel. According
to Mr. Pond, Hennepin County has at its disposal one million dollars
to be used for the development of access sites to the lake.
We are concerned that neither the City Attorney, nor any councilmember
present at the meeting last Tuesday, told or reminded Mr. Pond that
the Lost Lake channel is presently tied up in litigation, through
a suit which John ahd Ellen Wagman have brought against both Hennepin
February 22, 1983
Cgunty and the City of Mound, for repair and maintenance of the
channel.
We have consulted with our attorney, and wish to advise all
concerned that prior to. the settlement of .the aforementioned lawsuit,
any attempts to alter the wetlands.and/or Lost Lake effecting the
channel which runs through our property will result in the serving
of an injunction to prevent such development."
Signed by John and Ellen Wagman
QUOTATIONS ON PAINTING THE INSIDE AND OUTSIDE OF THE FIRE STATION
The City Manager explained that the Fire Department Solicited quotations
for. painting the inside and outside of the fire station. Three quotations
were received.
1~ Mike Sullivan $7,472,O0
2. Helge A. Norgard 7,755.00
3. Mi~netonka Painting.& Decorating Co. 9,981.OO
The Fire Dept. and the.Staff recommend approving the quotation from Mike
Sullivan for $7,472.00.
Paulsen moved and Peterson. seconded the followin.g resolution.
RESOLUTION #83-29 ~
RESOLUTION TO. APPROVE THE LOW QUOTATION FOR
PAINTING THE INSIOE AND THE OUTSIDE OF THE
FIRE STATION FROM MIKE SULLIVA~ IN THE AMOUNT
OF $7,472.00
The vote was'unanimously in fago[. Motion carried.
PLUMBING FEES
Terry Sincheff, Plum6ing Inspecto~:.wasiPrese'nt. The City Manager explained
that the .plumbing fees have not'been increased in the last four and one half
years because the inspector was..salaried and the permit revenue Was not
necessarily proportional to his salary. Nowwe-have a fee basis plumbing
inspector who is paid at a rate of 85% of the fees collected. In doing a
survey of several cities,.Mound has the lowest fees.
Peterson moved and Swenson seconded the following resolution.
RESOLUTION #83-30
RESOLUTION TO APPROVE THE pRoPOSED PLUMBING FEE
SCHEDULE AS PRESENTED
The vote was unanimously in favor. Motion.carried.
PLAYGROUND EQUIPMENT - HIGHLAND PARK
The City Manager explained that tot lot equipment for Highland Park was
apProved in the 1983 Budget to be paid out of the Park Capital Outlay Fund.
Quotations were solicited and 3 were received.
1. Hamele Recreation Co., Inc. $4,441.50
2. Bob Klein & Associates 5,860.00
3. Minnesota Playground, Inc. 5,146.20
34
February 22, 1983
The Park Director has recommended approval of the low bid from Hamele
Recreation Company, Inc. in the amount of $4,441.50.
Swenson moved and Paulsen seconded the following resolution.
RESOLUTION #83-31
RESOLUTION TO APPROVE THE LOW BID OF HAMELE
RECREATION CO., INC. IN THE AMOUNT OF $4,441.50
FOR PLAYGROUND EQUIPMENT FOR HIGHLAND PARK
The vote was unanimously in favor. Motion carried.
CITY HALL ROOF REPAIR
The City Manager explained that now SPring is coming and the CitY would
like to solicit bids on instal.ling new skylights in the City Hall to replace
the ones that leak. The money to do this is budgeted in Revenue Sharing.
The Council discussed the fact that the roof has leaked since the building
was constructed and would like to have the City Attorney look into suing
the building's architect for poor design of the roof.
Peterson moved and Paulsen seconded the fol.lowing resolution.
RESOLUTION #83-32
RESOLUTION TO AUTHORIZE THE STAFF TO SOLICIT
BIDS FOR THE REPLACEMENT OF THE ROOF SKYLIGHTS
The vote was unanimously in favor. Motion carried.
1983 MILL RATE REPORT
The City Manager presented the Council with a 2 page report on Mound's
mill rate and a comparison of area.city tax rates and per capita costs.
The comparison covered Orono, Spring Pa'rk, Minnetrista and Mound.
A breakdown of Mound's 1983 Mill Rate is as follows:
MILLS PERCENTAGE
City of Mound
School Dist. #277
Vocational School
Misc. Levies
Watershed District
Hennepin County
TOTAL
,1~2 CHANGE
15.501 15.190~ 18.730 -3.229
51.751 50.720~ 47.381 +4.37O
1.119 1.OgOt 1.469 - .350
5.106 5.000~ 4.384 + .722
.086 .O84~ .068 + .180
28.451 27.880% 29.183 - .732
lo2.o14 loo% 101.215 + .961
SUBMISSION OF PROPOSAL FOR TECHNICAL ASSISTANCE GRANT
The City Manager explained that Mound has the opportunity to apply for
a grant from the Minnesota Department of Energy, Planning and Development.
If approved, the money would be used to undertake the development of a
program that will analyze the Tonka facilities, develop a plan to market
the empty buildings, and assist in the development and implementation of
35
February 22, 1983
~l~ a specific recruitment plan for new businesses that will use the
facilities.
The work plan would consist of 4 steps to be done by consultant(s).
1. Financial Analysis
To study the economic cost of:
a. Reusing the existing facility
b. Redeveloping the existing facility by either subdividing or
demolishing sections'of the facility
c. Demolition and development of new facilities on the' site
2. Identify appropriate uses and users
By name and type:
a. industrial
b. commercial
c. institutional
d. recreational
3. Evaluate and ran~(~the identified users
In c~njunction wi~h the City and the Company:
a..Suitability of the users to the:
- site
- building
- a rea
b.' Suitability of present conditions as it relates to the need for:
- public subsidies
- adequacy of use of rail and road services
- utilization of presen~ Tonka labor force
4. Develop a specific work plan that can be used-by the City and the
Company in Phase II to implement the specific ideas and recommendations
that develop from Phase I Study.
a. Included in this should be:
- an analysls of the area labor force
- ways to develop preliminary local redevelopment plans
- analysis of the Strengths and weaknesses of the local.
community for business development
- an analysis of local infrastructure that can be used to
support local business development efforts
- typical costs for business operations
We will be asking for $~0,000 from the State. What needs to be done is
a resolution passed authorizing the Mayor and.Manager to sign the grant
agreement and approve the expenditure of $5,000 of City CDBG Funds for
our portion of the match. Tonka'has also committed $5,O00. The Grant money,
if the State agrees to fund this project, would come to the City and be
administered by the City. The study would be done from the City's perspective.
Councilmember.' Swenson stated that he would have to vote nay on this also
because he is opposed to spending taxpayers money on Tonka Toys and feels
that after we do all the work Tonka will do what they want anyway.
Peterson moved and Paulsen seconded the following resolution.
RESOLUTION #83-33
RESOLUTION AUTHORIZING THE MAYOR AND MANAGER TO
SIGN THE TECHNICAL ASSISTANCE GRANT PROPOSAL AND
SUBMIT IT TO THE MINNESOTA DEPARTMENT OF ENERGY,
PLANNING AND DEVELOPMENT ALSO APPROVING THE
EXPENDITURE OF $5000 OF CITY CDBG FUNDS AS OUR
36
February 22, 1983
PORTION OF THE MATCH
A roll call vote was 3 in favor with Councilmember Swenson voting nay.
Motion carried.
PAYMENT OF BILLS
Swenson moved and Paulsen seconded a motion to approve the payment of bills
as presented on the pre-list in the amount of $79,752.03, when funds are
available. A roll call vote 'was unanimously in favor. Motion carried.
SET DATE FOR PUBLIC HEARING
Paulsen moved and Peterson seconded a motion to set the date for a
public hearing on. an application.for conditional use permit for zero lot
line twinhomes..for Tuesday, March 15, 1983, at 7:30 P.M. The vote was
unanimously in favor. Motion carried.
TRAILER PURCHASE
The City Manager explained that Public Works needs a trailer to haul the
new roller from one street to another when patching. Geno Hoff has done
considerable checking and new trailers would cost about $6,000. He has
found a used 1980 Model T5 Ditch Witch trailer for about $2,000. The
funds to pay for this would come from Federal Revenue Sharing.
Swenson moved and Peterson seconded the following resolution.
RESOLUTION #83-34
RESOLUTION TO' APPROVE THE PURCHASE.OF A USED 1980
MODEL T5 DITCH WITCH TRAILER FOR NOT MORE THAN
$2,000.
The vote was unanimously in favor. Motion carried.
I NFORMAT I ON/M I SC ELLANEOUS
A. Memo from City Attorney regarding ~otions, resolutlons and ordinances.
B. Copy of the LMCD Board for 1983.
C. LMCD Financial Statement for 1982.
D. Budget report for the Water Patrol.
E. Gambling Report from. the American Legion Post 398 for January 1983.
F. Westonka Chamber Waves - February, 1983.
G. Letter from Westonka Schools regarding Tonka Buildings.
H. Letter from Hennepin County regarding appointment of Jon Elam to the
Health Services Advisory. Committee.
I. Letter from Economic Development Administration stating that no funds
are available from the EDA for the Tonka Buildings.
37
February 22, 1983
J. Agenda for the February 17, 1983, Minnehaha Creek Watershed District
Meeting.
Minutes from the January 20, 1983, Minnehaha Creek Watershed District
Meet ing.
K. Metropolltan Council "Review", date February 4, 1983.
L. Letter from Dept. of Natural Resources .regarding the Gray's Bay Dam.
M. Springsted Incorporated Financial Letter.
Paulsen moved and Peterson seconded a motion to.adjourn at 9:05 P.M. The
vote was unanimously in favor. Motion carried.
Jon'Elam, City"Manager
Fran Clark, City Clerk
BILLS ...... FEBRUARY 22,.1983
Air Comm 96.00
Abdo, Abdo & Eick 420.00
Holly Bostrom 174.OO
Burlington Northern 533.33
Jan Bertrand 16.11
Conway Fire & Safety 367.61
Bill Clark Standard 5,814.21
Davies Water Equip 413.18
Jon Elam 31.21
Eden Prairie Colorcraft 26.70
First Bank Mpls 16.00
Greyhound Travel Club 594.00
Genuine Parts 12.98
Holiday Inn 98.00
Herbs Typewriter Serv 10.00
Eugene Hickok & Assoc 121.00
Henn Co. Fire Chiefs Assn I0.00
Henn Co. Sheriff Dept 215.76
Island Park Skelly 105.46
Internatl Falls Fire Dept 525.00
ISFSI 120.00
Mike Kaatz 29.66
LOGIS 3,788.16
McCombs Knutson 2,285.00
Minn Comm 28.75
Metro Waste Control Comm 26,126.47
Mpls Oxygen 21.O0
MacQueen Equip i12.12
Minnegasco 5.86
Medical Oxygen 20.80
META Resources, P.A. 698.75
Mn Alcohol Traffic Safety 67.50
MN Park Superv. Assn 15.O0
MN Div of Emerg Serv 15.00
Natl League of Cities 190.00
No Central Sect. AWWA 45.00
NW Bell Tele 72.80
N.S.P. 4,271.52
Pitney Bowes 55.50
Water Products 692.00
Widmer Bros. 1,764.05
Xerox 273.72
Ziegler Tire Serv 972.18
R.L. Youngdahl & Assoc 20,532.23
Griggs, Cooper 1,128.48
Johnson Bros. Liquor 3,122.37
MN Distillers 1,151.10
Old Peoria 1,041.75
Ed Phillips & Sons 1,504.71
TOTAL BILLS
,79,752.03
February 25, 1983
CITY of MOUND
5341 MAYWOOD ROAD
MOUND, MINNESOTA 55364
(612) 472-1155
TO: CITY COUNCIL
FROM: CITY MANAGER
Enclosed is a financial report covering the Water Fund as of December 31, 1982.
What it sho~.;r is an adequate cash position so that we can begin to undertake
the water improvements outlined by George Boyer at our January 28th meeting.
I would recommend that we authorize Mr. Boyer to prepare specifications and
the necessary bid documents covering:
A. Installation of 2700 L.F. of Ductile Iron Pipe (DIP).
B. The purchase and installation of a booster pump station.
Once these two bids come in, we can evaluate their costs ahd if the costs
follow George's estimates then we can call for the bids on the 250,000 gallon
standpipe.
By doing this, I think we will insure that adequate financial resources are
available and that we can still complete all the necessary improvements in 1983.
One additional thought. With Tonka not closing until at lease October, I
think this will insure that we will have an adequate income in 1983 to
reline and paint both City water towers. I am holding off on that project
until around May 1st.
JE:fc
P.S, Sharon's memo on bond financing was added after I wrote this and raises
come interesting financial alternatives.
o~ ~..~
0
CITY of MOUND
5341 MAYWOOD ROAD
MOUND, MINNESOTA 55364
(612) 472-1155
Date: February 24, 83
To: Jon
From: Sharon
Attached is the 1982 Water Fund financial statement with a projection of
1983's revenues and expenditures and also the expected cash at December 31,
1983 before ony reduction for the building storage facilities.
If we were to sell $250,000 worth of bonds, I expect the interest rate we
would need to pay would be about 6 or 7%. If interest rates remain the same
for my investment purchases, I can earn around 8.5% or closer to 10% on
long-term (5 years) investments. Thus by selling bonds, our net interest
earnings over expense would be $50,000 to $80,000 over five years. At
this point, I think we should sell bonds if we can get a rate of 7% or so.
CITY OF MOUND, MINNESOTA
WATER FUND
BALANCE SHEET
AS OF DECEMBER 31, 1982
ASSETS
Current Assets
Cash
Accounts receivable - billed
Accounts receivable ~ unbilled
Accounts receivable - otheF
Inventory
Restricted Assets
Cash.
Special assessments receivable - current
Special assessments receivable - ~ellnquent
Special assessments receivable -.deferred
Fixed AsSets less Accumulated Depreciation
ACTUAL
DEC. 31, 1982
253,688
80,884
31,240
544
20,979
$ 387~335
42,285
1,106
(6]2)
12,89.7
$ 55,676
$1,388,68'3
$1,831,694
Total Assets
LIABILITIES AND FUND EQUITY
Current Liabilities (payable from current assets)
. Accounts payable $'": '9,860
Accrued wages. I 7,233
Due to other funds -0-
17,O93
7,006
37,000
44,006
6,957
~88,000
294,957
356,056
Current Liabilities (payable from restricted assets)
Accrued interest on bonds
Bonds payable - current installment
Long-term Liabilities
Benefits payable
Bonds payable .
Total Liabilities
Fund Equity
Contributed capital
Retained Earnings
Total Fund Equity
$ 1,700
1,473,938
$1,475,638
$1,831.,694
Total Liabilities and Fund Equity
PROJECTED'
DEC. 31, 1983
$ 286,922
- 95,000
37,500
20,000
$ 439~422
43,342
1,000
-0-
11,513
55,855
$1,3.53,474
$1,848,751
$ lO',OOO
7,500
17,5oo
7,ooo
37,000
44,ooo
7,000
251,000
258,000
319,5oo
$ 1,7oo
1,527,55!.
$1,529,.25.1.
$1~8~8~751
CITY OF MOUND, MINNESOTA
WATER FUND
STATEMENT OF REVENUES OVER EXPENSES
AS OF DECEMBER 31, 1982
Operating Revenues
Water sales
Penalties
Water meter, outside reader &
Charges for-services
Total Operating Revenues
Opera~|ng Expenses
Personal services
Supplies and repair materials
Professional services
Communications
Transportation
Printing and legal publication
Insurance .
Utilities
Repair and maintenance
- Logis
'MiSc. '
· Total Operating Exp~nses
Depreciation
· Total Operating Expenses
Operating Income (Loss)
Non-OPerating Revenues (Expenses)
Taxes
Water connection fee
Interest on investments
Interest on assessments
Interest on debt
'Paying agent fee
Misc.
Total Non-Operating Revenue
Net Income
Retained Earnings Jan. 1,
Transfer to improvement
Add back depr. on cont.
Retained Earnings December
rod Sales
before Depreciation
after Depreciation
(Expense)
1982
and equipment fund
assets
31, 1982
ACTUAL
1982 AS OF
BUDGET DEC.31,1982
298,500 $ 283,537
-O- 6,045-
2,000. 2,709
5,000 -O-
305,500 $ 292,291
$ 99,928 $ 102,182
44,275 25,474
4,500 21,O26
3,1OO 3,262
2OO 49
55O 4O8
10,OOO 9,910
8,OO0 31,564
22,000 28,481
8,400 5,018
900 954
$ 201':853 ~ 228,328*
-0- 3!~987
$ 20i',853 $ 260,315
$ !q3,647 $ 31~9.76
1983
PROJECTED
360,oo0
1,500
--O-
361,500
$ lO6,91o
32,490
5,485
3,891
2oo
4o0
8,003
33,000
72,154'*
5,500
710
268,743
35~209
303,952
57,548
-o- $ 18,619 $ -o-
-0- 4,450:. 5,000
-0- ]5,689 10,000
-O- 1,110 -0-
(20,690) (20,046) . (18,8553
-o- (178) (18o)
-0- 154 1OO
$ (20,690) $ 19,798
$ 8~957 $ 51,774
$1,421,964 $1,421,964
(5,000) -o-
200
$1,499,921
$1,413,938.
(3,935)
$ 53,6113
$1,473,938
-0-
$1,527.,5151
* Includes well costs (See
** includes tower repair of
attached page)
$40,OOO
WELL COSTS
Pr°fessional services
Printing and publication
Other (Renner & Sons)
TOTAL
$ 7,763
353
10,668
$18,784
M-IP-1
January 25, 1983
MOUND, MINNESOTA
ISLAND PARK WATER SOURCE ALTERNATIVES
THIS TECHNICAL MEMORANDUM DISCUSSES THREE ALTERNATIVES
PROVIDING A SUITABLE AND RELIABLE WATER SOURCE FOR T~, ISLAND
PARK AREA OF MOUND, MINNESOTA. THESE ALTERNATIVES HAVE BEEN
DEVELOPED IN VIEW OF THE LOW-PRESSURE AND LOW FLOW CONDITIONS
THAT OCCUR DURING HEAVY SYSTEM DEMANDS AND THE RECENT
UNSUCCESSFUL ATTEMPT TO FIND A NEW WATER SOURCE ON THE
ISLAND.
HYDROLOGISTS-ENGINEERS-545 INDIAN MOUND, V*,~,YZATA, MUqNESOTA 55391
930
I INTRODUCTION
The Island Park area of Mound is an area in the southeastern
portion of the community. Access to the Island is provided
at the Emerald Lake Channel and Black Lake by means of CSAH
125. As such, the area in questions is an island and
physically separated from Mound proper with the exception of
the two referenced street connections.
A six-inch water main(1) on CSAH 125 (Wilshire Boulevard)
physically connects the Mound-Island Park water distribution
systems. Well No. 5, located at the corner of Wilshire
Boulevard and Tuxedo Boulevard has, until recently, provided
a water source for the Island. In view of the many
operational problems that have occurred with Well No. 5, it
is reasonable to assume that said Well No. 5 cannot be relied
upon as a permanent water source.
Attempts to develop a reliable water source on the Island
have not been successful because of unsuitable geological
formations, capable of providing a suitable quantity/quality
water.
The Island, therefore, relies on its water supply solely from
the six-inch connection on Wilshire Boulevard. The limited
capacity of the six-inch main coupled with high elevations on
the Island have and will continue to produce low pressure
problems on the Island, particularly during high demand
periods.
(1). Actual piping at channel is an U-inch line.
II ALTERNATIVES
Several alternatives have been considered, all of which would
minimize the low pressure problems and provide a suitable
quantity of water for the Island. A brief description of the
alternatives follows:
IP-1 - New Well and Storage Tank
Alternative IP-1 consists of a new well and a storage tank.
While recent test drilling has concluded that a drift well
and Jordan sandstone well are not suitable water sources, the
Hinckley sands°tone is a proven water source at a depth of
approximately 750 feet. Spring Park recently drilled a well
in the Hinekley formation.
A major disadvantage of drilling a Hickley well is the very,
poor water quality. Water from the Hinckley is high' in
hardness and total solids, and high in iron and manganese.
In the case of Spring Park, a water treatment plant was
constructed to minimize the objectional water quality.
In addition to a water source (well) an elevated storage tank
or standpipe is required for pressure regulation and storage
during periods of high demand.
IP-2 - Booster Pump Station and Storage Tank
Alternative IP-2 consists of a booster pump station which
would take water from the existing water main on Wilshlre
Boulevard, in the vicinity of Emerald Lake, and pump into the
proposed storage tank on the Island.
DistriDution system improvements, consisting of a new eight-
inch line from Shoreline Boulevard to the corner of Wilshire
Boulevard and Emerald Drive, would be required in order to
provide sufficient flow quantity at the booster pump station.
Prior to any distribution system improvements, fire flow
t~sts should be performed to access the flow/pressure
characteristics at the proposed booster pump station.
As with Alternate IP-1, an elevated storage tank or standpipe
would be required in order to regulate pressure and provide
storage during high demand periods.
IP-3 - Booster Pump Station Only
Alternate IP-3 is similar to IP-2 in that a booster pump
station would supply water to the Island via the proposed
distribution system improvements.
The booster pump station would contain variable speed pumps,
however, designed to provide constant discharge pressure at
variable flow rate.
Variable speed pump stations have been used successfully in
similar situations, however, pressure variations will be
epxerienced due to the reaction time required. As a drop in
pressure in the system occurs, this pressure drop is sensed
and automatically controls the speed of the booster pumps.
It takes time for this process to occur and consequently
pressure fluctuations will occur.
932,
III COST ESTIMATES
Cost estimates (preliminary) have been prepared for the three
previously referenced alternatives. For estimating purposes,
it has been assumed that the storage tank for the Island
would be a standpipe with a capacity of 250,000 gallons. The
booster pump station would have a maximum flow capacity of
750 gallons per minute.
IP-1
IP-2
IP-3
New Hinckley well
Well pur0~p
Pump house (complete)
250,000 gallon standpipe
Booster pump station
$
2,700 L.F. - 1~" DIP
250,000 gallon standpipe
$110,000
10,000
60,000
140,000
$320,000
$ 52,000
67,500
140~000
$247,500
1. Booster pump station $ 52,000
2. 2,700 L.F. - 1t5" DIP 67,500
$119,500
IV RECOMMENDATIONS
Each of the alternatives discussed will provide a reliable
water source for the Island. Of the alternatives presented,
IP-2, booster pump station and standpipe, appears to be the
alternative of choice. The Hinckley well alternate with poor
water quality and high pumping costs is not in the
Consultants opinion desirable. Likewise, Alternate IF-3 does
not provide storage for high demand periods, such as a fire,
and some pressure fluctuations will persist.
CITY of MOUND
February 24, 1983
5341 MAYWOOD ROAD
MOUND, MINNESOTA 55364
(612) 472-1155
To: Jon (-' '. ~ ,
From: Sharon
Greg Skinner and I are trying to reduce the number of estimated water
meter readings. What we would like to do is charge $5.00 where a card
was left because the meter reader could not get into the house and the
people have not called or mailed in the reading.
If council approves this idea, the card will tell them that we will
charge $5.00 to re-send someone out to read the meter. The $5.00 charge
would recover some of the cost of going to a house-the second time to
read the meter and hopefully prompt more people to call or mail in
readings.
mRUARY 23,1983
MR. JON w~JAM, CITY MANAGER
CITY 0P MDUND
5341-MAYW00D LANE
MOUND, MINNESOTA 55364
DEAR MR. _ELAM:
ON JUNE 11, 1983 THE MINNETONKA BASS CLUB WTT.L AGAIN
CONDUCT THE ANNUAL FISHING CONTEST AT THE SURFSIDE
SUPPER CLUB IN THE CITY OF MOUND.
I APPLTR.~ THIS PAST YEAR AND RECEIVED THE AUTHORIZATION
FROM THE MOUND COUNCIL. I WOULD REQUEST COUNCIL CONSIDERATION
FOR THE ABOVE MENTIONED DATE.
WE HAVE APPLIED FOR THE REQUIRED ~ PEBMITS, ALONG ~
THE NOTIFICATION OF THE HENNEPIN COUNTY WATER PATROL.
THANKS FOR YOUR ASSISTANCE IN THIS MATTER.
EARL JOHNSON
13 01-MAYW00D LANE
MINNETONKA, MINNESOTA 55343
Home- 935-9391
0ffioe- 474-3261
CITY OF MOUND
APPLICATION FOR BINGO PERMIT
Date ~_- ~_7-- -- ~ ~
Name of Applicant
(If an organization, give organization name)
Address of where Bingo will be played ~~ ~ ~.~ ~~
o
e
Dates and Hours Bingo will be played ~P/~ 70
{Attach separate sheet if more room necessary)
Is Licen°se Fee attached?
Fidelity Bond:
(a) Amount
'(b)
(c)
Yes~ N6 ~' Amount
Name of Bonding Company
Expiration Date of Bond
* (Minimum $10,000.)
* No t.e:
Fraternal., religious, veteran an~ other non-profit
organizat'ions may request the Bond t~ be waive'd.
Please. indicate below if you are making such a request.
~,~arch'
April
~.~ay
June
Jul y
August
Sept
Oct
Nov
Dec
26th
20th
15th
20th
17th
21st
16th
21st
~~/gnat~person making applicati,
Note: Section 42.05 Subd 3~ .- .............. ..."Licenses shall expire on
November 30 next after--the date of issue."
CITY OF MOUND
APPLICATION FOR BINGO PERi, IT
D a t e ~ --/f°f3
Name of Applicant ~~7~. ~;~%.. ~~ ~.
~~f)(If~<~,~6~,o~,an organization, give organization name)
Bingo Manager (Name)
Address
Address of where Bingo will be played
5
Dates and Hours Bingo will be played
(Attach separate sheet if more room Hecessary)
Is Licen'se Fee attached? Yes N6 /" Amount
Fidelity Bond:
(a) Amount
(c)
Name of Bonding Company
Expiration Date of Bond
* (Minimum $10,000o)
*Note:
Fraternal., religious, veteran and other non-profit
organizat'ions may request the Bond t~ be waive'd.
Please. indicate below if you are making such a request.
Please waive fee and bond.
Signature of person making appli
tic
CITY OF MOUND
Mound, Minnesota
TO:
FROM:
DATE:
SUBJECT:
Jon Elam, City Manager
Licensing Department
February 24, 1983 '
License Renewals - Cigarette and Garbage & Refuse Collection
The following cigarette licenses expire February 28, 1983. The renewal
period is from March 1, 1983 to February 28, 1984.
Al & Alma's Supper Club, 5201 Piper Road
B°& L Vending for Seton Mobil Service, Shoreline & Bartlett
.~Burger Chef Restaurant, 5205 Shoreline Blvd. Bob's Bait Shop, 2630 Commerce Blvd.
Cardinal Oil Co. for Mound K Station, 2620 Commerce Blvd.
Croix Oil Co. for Metro 500 Station, 5377 Shoreline Blvd.
~0,Gas Hut, Inc. # 7, 1730 Commerce Blvd.
~k~Hole in One Bake Shop, 5309 Shoreline Blvd.
American Legion Post 398, 2333 Wilshire Blvd..
Mound Liquor Store, 2324 Wilshire Blvd.
~V.F.W. Club # 5113, 2544 Commerce Blvd. Mound Super Valu, 2240 Commerce Blvd.
Donnies on the Lake, Inc., 4451Wilshire Blvd.
No Frills Food Market, 5229 Shoreline Blvd.
Grimm's Store, 3069 Brighton Boulevard
Tom Thumb Superette, 2222 Commerce Blvd.
Snyder Drug Store, 2321 Commerce Blvd.
Superamerica Station Store 4046, 2251 Commerce Blvd.
Duane's 66 Station, 2603 Commerce.Blvd.
PDQ Food Stores of MN., 5550 Three Points Boulevard
Mound Lanes, 2346 Cypress Lane
Martin & Son Boat Rental, 4850 Edgewater Drive
~Surfside~ Inc., 2670 Commerce Blvd.
Three Points Tavern, 5098 Three Points Blvd.
i~.Servomation Corporation, Tonka Toys, 5300 Shoreline Blvd.
5 Machines
The following garbage and refuse collection licenses expire February 28, 1983.
The renewal period is from March 1, 1983 to February 28, 1984.
Blackowiak & Son, 1195 Sunnyfield Road N., Mound
Dependable Services, 105 Clover Lane, Delano
Westonka Sanitation, P.O. Box 94, Navarre
Woodlake Sanitary Service, 4000 Hamel Rd., Hamel
- 1 Truck
Marjorie Stutsman
CODE
3111
3112
3113
3121
3124
3125
3126
3161
CITY OF MOUND
1982 LICENSING SUMMARY
TYPE
Liquor
Sunday
Club
Wine
Set-Up
On-Sale Beer
Off-Sale Beer
Charitable On-Sale
Garbage
Entertainment
Musical Group
Palm Reader'
Bowling
Pool Tables
Games of Skill
Juke Boxes
Arcade (Games
of Skill)
Misc. Business Licenses
Restaurant
Tree Trimming
Misc. Business Permits
Plumbers Registrations
Transient Merchants
Hawkers License
Cigarette
Entertainment
Gambling
Dance
1982
BUDGET
$12,4OO
$ 1,O85
~ 400
$ 1~275
-O-
$ 1,500
$ 350
3OO
NUMBER
SOLD
1
1
2
1
5
7
3
4
2
8
3
32
5
10
14
35
5
2
34
3
4
1
AMOUNT
$ 4,000.00
200.00
200.00
200.00
6OO.OO
$ .5,2OO.OO
$ 1,100.00
187.50
30.O0
$ 1,317.50
$ 400.00
$ 1OO.OO
15.oo
8o.oo
30.OO
925.00
50.00
250.00
$ 1~450 _
$ 70.00
25.oo
$ 95.OO
$ 525.00
90.00
50.00
$ 665.00
$ 408.00
$ ]50.00
300.00
200.00
$ 65o~oo
$10,185.50
TOTALS
$17,310
MINUTES OF THE
MOUND ADVISORY PARK COMMISSION MEETING
February 10, 1983
Present were: Chai~ Phyllis Jessen; Commissioners Cathy Bailey, Andy Gearhart,
Lowell Swanson and Art Andersen; Council Representative Pinky Charon; Park Director.
Chris Bollis and Secretary Marge Stutsman.
Also present was Don Ulrick, Director of the Westonka Community Services.
Chair Phyllis Jessen opened the meeting at 7:30 P.M.
MINUTES.
The minutes of the January 13, 1983 Park Commission meeting were presented.for
consideration. Swenson moved and Gearhart seconded a motion to approve the minutes
of the January 13, 1983 Park Commission meeting as presented. The vote was unani-
mously in favor.
AGREEMENT WITH'WESTONKA'COMMUNITY'SERVICES;'DISTRICT NO. 277
Don Ulrick, Director of Westonka Community Services, explained the agreement (copies
-.of which were distributed to the Park Commission) is intended to clarify a verbal
agreement which has been in effect since 1978 between the City and Westonka Communi-
ty Services for paying for the services of lifeguards, etc. (All activities involved
in the cost of services for which the City is billed and the Community Services
Department of District No. 277 Is responsible to provide).
After agreement rev~eWal by Mr. U~rick, discussion.followed.
gram were given and the following items should be changed:
Comments on the pro-
1. Changing scheduled hours from 11 A.M. to 7 P.M..for Mound Bay Park only
i(Present hours tO:30 A.M. to 5:30'P.M.)
2. Correct names of beaches '(Witchwood is spelled Wychwood and Bluebird should
be changed to Canary)
3. On page 6 under Ill Extended Hours should be 1½ Hours; Item I should read
"Mound Bay Park"
4. On page 7, item 2 should read "...July 1981 and July 1982..".
Mr'. Ulrick stated that under the Youth Employment Service program, they only make
contact with people, do not make actual work arrangements and that the thrust of
program is to make sure they take care of the youth employee.
Bailey asked about adding'raft to beach at Mound Bay Park. Ulrick felt that would
require a third lifeguard on duty.
It was suggested-that Lifeguard scheduled-hours at Beaches should be put in the
Laker along with information on where funds are coming from for this service. The
Park Director is planning on working up a letter to the City Manager listing the
number of "kids" that are hired by this program (sizable number).
Ulrick stated the Community Services will continue to register groups for the soft
ball fields for both the City and the School District for team competition games.
City fields that are scheduled are Brookton, Three Points and Island Park. He is
going to ask teams to delineate the hours needed more--so fields can be used more.
Chair Jessen asked if at a later date, Mr. Ulrick would review the regulations
on drinking on the fields, and other points (especially for the new Park Commis-
sion members' information).
Park Commission Minutes
February 10, 1983 - Page 2
Charon moved and Gearhart seconded-a motion to recommend approval of the agree-'
ment and to send to the City Council. Agreement to include change of the schedule~
hours for Mound Bay Park to ')l:O0 a.m. to 7:30 p.m't The vote was unanimously in'
favor.
Mr. Ulrick stated that they are open to any ideas'for.programs. The School District
can access buses by co-sponsoring transportation with the City and this way, the City is
just billed for actual cost. One new program they are considering maybe an intro-
duction (for beginners) to water skiing. They have had requests for saiJ boat in-
struction; but this is too expensive.
REPORTS
Council Representative Charon reported that nothing' new pertaining to the Park Depart-
ment has happened.
The Park Director reported mbre'planting~ (wi'llows) have been put in Mound Bay Park.
REVIEW OF PARK PLAN
The Park Director stated that for sOme time a long range park plan for the City has
.been worked on, Last summer, the City.had 2 landscape architects who were.working on
their internship and this project Is the result of their work, · Each park was reviewed
and what"~hey added for each park was what they. perceived would be good.development;
We are going over the plan to familiarize everyone with the'parks - we can agree or
modify or whatever. Below is information and comments on a few of the parks.
Mound Bay Park - Page 13: On this, the beach has been moved end the drain area
filled so there will be no pooling~ Need.to spearhead some type of fund drive to
do the Depot building. Park Director reported he is getting some~estlmates for some
kind of carpeting or floor.covering.- It was suggested teat some Park Commission
meetings.be held in the building to help generate interest in it.
Wychwood Beach - Page 17: Namedafter subdivision and gets heavy use. Plans in-
dicated tree plantings. Soil is poor and trees would have to be resistive to fumes
road pollutions. Commissioner Bailey stated a guard rail needed or fence put up.
Park Director commented that this,is winter access for snowmobiles and beach was
open for public landing September 15 until June 1. Park commission felt a few
trees should be added and guard rail or fence (something to control access).
Note: Include the end of Manchester Road in this year's park tour - really good
piece for a beach.
Doone Park - Page 25: This was tax forfeited land the City picked up. Development
was started, bu~ it was found the park needed a drainage system and project was
shelved until the road project was done and this has been given a low priority be_
cause Island Park Park has been fixed up and is not over 2½ blocks away. The
playground equipment was vandalized; had to be torn up. Do have a working plan
which includes a basketball hoop, backstop for baseball (S.E. corner).
There is more potential use of Pembrook and Avalon Parks because of not having to
cross Tuxedo. A chain link fence was originally proposed along Tuxedo Blvd. side
of Doone Park for safety, but a boulevard strip was put in with trees so plans
are to use this fence at Mound Bay Park on south border of park.
The Chair asked about putting in volleyball net posts or possibly having portable
ones.
Park Commission Meeting ·
February lO, 1383 - Page 3
Pembrook Beach - Page 62: This park has a medium priority. Discussed whether
Pembrook Park was needed and if this could be sold to generate funds for use in
the other parks or beaches, .
Note: Check out how park on Clyde and Island View Drive was' acquired before the
next Park Commission meeting.
It was agreed that review of the park plans would continue at the next meetings.
ADJOURNMENT
Charon ~oved and Swenson sedonded a motion to'adjourn. All in favor, s~ meeting
adjourned at 9:30 P.M.
AGREEMENT
BETWEEN:
EFFECTIVE DATE:
City of Mound
Westonka Community Services, District No. 277
January 1, 1983 or when officially accepted by each party of
this agreement
An agreement to provide the described services as a contracting agency from the
Community Services Department, District No. 277 to the City of Mound. This
agreement is to update the actual practices that have evolved via verbal
agreements over the past several years. The intent of this update is to clarify, in
writing, all activities involved in the cost of services for which the city is billed
and the Community Services Department of District No. 277 is responsible to
provide.
The attached information is categorized as:
I. Lifeguard services at six (6) city beaches
II. Y.E.S. - - Youth Employment Services
LIFEGUARD SERVICES
Information of this program will be categorized a follows:
A. Lifeguard Service Schedules by Beach Location
B. Scheduled Hours and Dates of Lifeguard Services
C. Training Program Description
D. Supervision Scheme
E. Salary Schedule Philosophy
F. Summary
G. Cost of Service for 1982-83, estimated
II. An overview of the workings of the Y.E.S. program as it has
evolved from the beginning of this agreement in 1978.
Some thoughts concerning the value of the service to the
community.
Concluding thoughts for the consumption by the City Council and
citizens consideration.
The basis for contract, fee, present and future.
A-B. (combined)
LIFEGUARD BEACH SCHEDULE, CITY OF MOUND
The following beaches are provided lifeguard services as described:
MOUND BAY PARK--Memorial Day to Labor Day and all non-rain days, between
those dates. The guards go on duty at 10:30 a.m. to 4:30 p.m. each day. On
weekends and holidays the scheduled hours are extended until 5:30 p.m. On
weekends there are three (3) guards during the middle of the day when lunch breaks
occur and traffic in the park is the heaviest. We are proposing that the hours be
changed to more closely fit the beach use pattern. This change would create a
schedule of 11:00 a.m. to 7:00 p.m.
Wytchwood Beach
Pembrook Beach
Chester Park Beach
4. Centerview B each
5. Canary. Lane Beach
These five beaches are served June 15 to August 15 (or to the nearest weekend
day). Chris Bol!i~ monitors the usage due to weather and established exact
opening/closing dates. Hours on these beaches are 1-4 p.m., seven (7) days per
week.
Additionally, there is some minimal additional guard time (in 30-minute
increments) for swim lesson guarding at neighborhood beaches.- This usually
happens only three (3) days per week for six (6) weeks.
C. LIFEGUARD TRAINING--The hiring of a person that has been acquired as
lifeguard (certificate) through Red Cross programs can be dangerous without
ongoing training. What happens is that they do not swim in the winter, and
therefore, are not conditioned to perform in an emergency. Further the testing for
a lifesaving certificate is knowledge and skill attainment. In the water, under
emergency conditions, can be a moment of truth for lifeguards. When the City
hired its own lifeguards, there was no training, no certainty that the person
certified could actually perform under emergency conditions. Thus, the original
working agreement with the City included training.
The training will include pre-season testing in the water and written testing, to
qualify for employment. This testing is to determine areas of needed improvement
and serve as an evaluation of the staff for purposes of designing training sessions.
Training this past year has been at the pool and early morning sessions at the beach
in the water. The guards must have the courage to enter the water under all
climatic conditions including cold temperatures. The corps of guards all
participate in an annual review of first aid, and are recertified in C.P.R. These
inservices, which include 500 yards of swimming per week, occur weekly for six
weeks at 6:30 a.m. In addition to the summer inservice that is part of the
contract, there is ongoing training for high school-age guards during the winter
months. By re-hiring college-age guards during summer, we retain experienced
people and provide employment for the families of our community sending children
to college. This partnership serves the families and the city.
Page 2
The 1983 Training Concept will emphasize:
1. '~rake Charge" at the Beaches, Responsible Attitude and
Actions
2. Stiffer Testing Proeedures--a Learning Method for
Employees
3. Expanded Emergency Procedures With Police Department
and Other Agencies
4. Consistent Uniforms for Duty
D. LIFEGUARD SUPERVISION SCHEME--Employees need supervision. This had
been difficult for Chris Bollis as his duties in the parks made supervision of
lifeguards difficult or impossible. Therefore, supervision became an integral part
of the original service description.
The people listed below comprise the active supervision of lifeguards on the
beaches. While primary supervision duties are in the hands of Debra Kullberg, the
Water Activities Coordinator, it is important that city department heads involved
in park activities also be recognized as having supervisory authority. This past
summer I introduced Chris Bollis, and Jackie Meyer to the lifeguard staff and
indicated that they have the authority to issue orders to the guards and requested
Jaekie and Chris to report any concerns.
Don Ulriek, Director
--Occasional beach monitoring,
especially at Mound Bay Park.
Participation~in inserv'ice. Response
to citizen concerns.
Debra Kullberg,
Water Activities Coordinator
--Is employed to hire personnel,
develop training programs, lifeguard
testing, shift scheduling, payroll,
coordination with city staff,
equipment maintenance, and
supervision. Has the primary
responsibility to supervise the beach
staff. She will go to each of the
neighborhood beaches twice per
week and Mound Bay Park three
times per week, including weekends.
Chris Bollis, Park Director
--When working at the listed beaches
observes the actions of the guards
and admonishes, directs, or
otherwise becomes involved if the
activities do not meet acceptable
standards.
Page 3
Jaekie Meyer,
Summer Recreation Director
--She brings playground children to the
beaches as part of the Summer
Recreation program. There she
observes the actions of the guards
and is authorized to interact with
them to correct situations deemed
not appropriate.
The Citizens
--Perform a volunteer duty by
reporting undesirable actions they
observe on the beaches. Their input
is invaluable to beach supervisions.
I may recruit neighborhood citizens
to observe and report inappropriate
actions. They would remain
anonymous to the guards. This
would be an expansion of the
neighborhood involvement as phone
locations in the event of emergency.
The guards have the name of the
house they may go to use the
telephone in emergency.
Neighborhood cooperation has been
excellent.
SALARY SCHEDULE PHILOSOPi-IY--Some years ago surfaced'the concern of the
number of guards we were training and then subsequently hired at a higher rate by
other area agencies, Le.--Hennepin County, Lafayette Club, etc. It became clear
that the more training and experience the individual had the more valuable they
became. From that evolved a salary schedule that reflected this concept. Each
year a guard works 100 hours, they raise a salary step. Additionally, if they
become a Water Safety Instructor (W.S.I.), they are raised according to years of
service on the salary schedule. We pay them more, and they are worth more. We
expect them to perform accordingly or we replace them.
Below is the salary schedule issues in Administration Regulation #4231, dated
6/7/82 for July 1-July 30, 1983 fiscal year. At this point, I do not see this pay
scale being altered as it serves the employee as they move through the experience
and certification levels and is good summer employment for students, both college
and high school The service as designed provides income to students willing to
take the necessary steps to become certified as a lifeguard.
Under 18 Over 18 Under 18 Over 18
Life Life WSI WSI
Guard Guard Tch Aide Tch Aide WSI
$3.05 3.35 3.20 3.35 4.00
$3.20 3.35 3.40 3.40 4.25
$3.40 3.40 3.60 3.60 4.50
$3.60 3.60 3.80 3.80 5.20
5.35
Page 4
WSI
Life
Guard
3.60
3.80
4.00
4.20
4.50
Years
First
Second
Third
Fourth
Fifth
EXPERIENCE FOR INCREMENT INCREASE--To qualify for an increment, an
employee must be able to document at least 100 hours of employment in one or
more of the water activity classifications during the past 12 month period from
June 1 of each year.
New employees may be awarded experience credit by the Community Services
Supervisor for similar documented employment in other credible organizations.
EMPLOYMENT REQUIREMENTS AND EVALUATION--
Life Guard 1. Must hold a current Certified Life Saving Certificate.
2. A 16-year-old must have or obtain a C.P.R. card within
90 days after hiring.
3. A performance reviewal will be made 30 days after hiring.
4. In and out of water screening will be made at supervisor's
discretion.
W.S.I.
1. Must be 17 years of age and hold a current Certified W.S.I. card.
2. Must have current C.P.R. card and First Aid training.
3. A performance reviewal will be made 30 days after hiring.
4. In and out of water screening will be made at supervisor's
discretion.
SUMMARY--As our community has grown in numbers of residents using the
beaches, and the number of non-residents frequenting our public parks during the
summer months, the altitude of accident prevention (responsibility) has grown in
the minds of city staff, citizens, parents, and city council members. In essence, we
are providing for the welfare of our citizens by providing safe beaches. A death by
drowning easts a pall over the lake felt by swimmers and boaters alike. We have
not had to report a drowning. We have prevented death or serious injury from
marring the lives of our citizens, by vigorously supplying preventive measures
through the employment, training and supervision of a lifeguard staff.
Page 5
He
IV.
VI.
IH.
COST ESTI~TES CITY BEACH -- 1983
Mound B each
Average Hourly Cost
(Staffed by most
Capable Guard)
Five (5) Additional Beaches
$4.10
Average Hourly Cost $3.90
1. Bluebird
2. Centerview
3. Witchwood
4. Chester
5. Pembrook
1130 Hours Cost Est.
883 Hours Cost Est.
Extended Hours - 1-~ Hours Per Day at Mound Bay Park
(5:30 - 7 p.m.)
Inservice for Guards
Supervision
Don Ulrick - N/C
Debra Kullberg
Mileage
SUB-TOTAL
TOTAL
$4,630.00
3,445.00
700.00
810.00
450.00
60.00
10,095.00
1,515.00
$11,610.00'
(This estimate does not include rain day
or holiday pay for guards. These will
usually wash each other.)
Page 6
YOUTH E1VIPLOYMElh'T SERVICE
November 3, 1982
e
J
This is a public service provided to the surrounding area by the City of Mound
And Community Services that no one else does. The Youth Employment
Service assists adults by providing help and it provides the young person with
the opportunity to earn some money doing an odd job in his/her neighborhood.
We have fielded over 250 request-for-help phone c~ll.~ from the public between
July 1981 and July 1982. We have 244 names of young people registered with
us who want to work.
Many people find a good worker through calling us, use the worker for two
years, and call us back for a new name when they are in need of help.
Residents of Mound, especially new people to the area, call us for babysitter
names and phone numbers. People express their gratefulness for this service.
5. 1983 budget is $600 for staffing, telephone, supplies, etc.
Page 7
CITY of MOUND
5341 MAYWOOD ROAD
MOUND, MINNESOTA 55364
(612) 472-1155
February 25, 1983
TO: CITY COUNCIL
FROM: CITY MANAGER
RE:
1982 BUILDING REPORT
Because 1982 was such a down year economically, I really didn't give thought
to the fact ~hat alot more was going on in the City than I realized.
A breakdown of the 263 Building Permits shows this dramatically.
NUMBER VALUE
New Home Construction 32 $1,783,171
Duplex Construction 3 217,280
New Commercial 1 31,152
Remodeling 227 965,098
TOTALS 263 $2,996,701
This translates into a 1.2% increase in the number of residences, adding
approximately 100 new citizens to our population.
It also shows that the tax base for Mound is a residential tax base and that
future tax changes will be carried much more by the homeowners rather than
the commercial district.
That probably speaks, more than anything else, to the need to continue the
work to shore-up Mound's commercial district as a form of homeowner tax
relief.
A look at the revenue generated by this development is also interesting.
GENERAL FUND
Permit Fees
Plan Check Fees
Surcharge Fees
City of Spring Park
Planning Commission Revenue
Plumbing Permits
Excavation Permits
Heating Permits
Misc. Revenue
(Less Permit Fee Rebates to State)
NET
.20,632.53
6,006.72
58.O8
5,383.54
2,179.00
2,060.00
530.00
338.50
8.42
37,196.79
Page 2
Building
February
Report
25, 1983
WATER FUND
Water Connection Fees
Water Tapping Fees
Stationary Rods
SEWER FUND
Sewer Connection Fees
SAC Charge Revenue
(Rebated to.the State
PARK DEDICATION FEE
EXPENSES
1. Salaries (including all
2. Supplies (Xerox, misc.)
3. Motor Fuels
4.. Postage & Phone
5. Printing & Publications
6. Insurance (Work Comp.,
7. Utilities
8. Conferences & Schools
9. Misc.
- 14,'305.50
fringes)
Liability, etc.)
$ 4,375.00
2,629.00
80.00
$ 7,084. OO
$ 4,375.OO
14,500.00
$ 18,875.O0
$ 550.00
$ 43,892.96
2,370.10
945.57
1,491.89
1,4~1.27
2,242.37
7O6.5O
766.29
1~O65.17
$ 54,882.12
General Fund
LESS Expenses
Income
-54,882.12
t Io, ~$,~o
= (# )
A. THOMA$ WURST, P, A.
CURTIS A, PEARSON, P, A,
~IoSEPH E~. HAMILTON, ~ A.
THOMAS ~. UNDERWOOD, ~ A.
JAMES D. LARSON, ~ A.
JOHN J. BOWDEN
LAW OFFICES
WURST, PEARSON, HAMILTON, LARSON & UNDERWOOD
HINNEAPOLIS, ~INNESOTA 5540~
February 8, 1983
TELEPHONE
(612) 338-,4200
Mr. Jon Elam, City Manager
City of Mound
5341 Maywood Road
Mound, Minnesota 55364
Re:
Chapter 507, Sections 25 and 26 -
M.S.A. 462 36, Subd. 1 -
Laws of Minnesota 1982
o
Dear Jon:
I have previously sent you copies of Chapter 507, Sections
25 and 26, of the Laws of Minnesota 1982. I am enclosing another
copy with this letter. I am also enclosing a copy of a letter
received from Hennepin County Division of Records, being the
Hennepin County Recorder and Registrar of Titles, concerning these
two sections of the law. Please note the requirement of these
laws that a certified copy of any conditional use ~ermit shall
be filed with the County Recorder or Registrar of Titles of the
County. The conditional use permit shall include the legal
description of the property for which the permit is issued.
You will note in the letter from the County that they are
suggesting that this be simplified as much as possible. They are
also asking that only permits or variances granted be filed. They
do not want resolutions denying variances or permits. In essence,
they suggest that it be simplified as follows:~
1. The documents for recording include the name of the
person or persons being granted the conditional use permit or
the variance.
2. The legal description of the affected land be set forth
in the resolution.
3. An expiration date be included when applicable. This
is something which will be seldom included in any conditional use
permit or variance.
WURST, PEARSON, HAMILTON, LARSON & UNDERWOOD
Page 2
Mr. Jon Elam
February 8, 1983
4. The Clerk certify this information.
The document should also include a provision indicating
where the actual permit or variance and the terms thereof are
located.
You will also note that they intend to charge for this recording
under M.S. 386.77. This is going to mean that the City is going to
have to increase its fee structure because there will be recording
fees, documentation preparation fees, etc. for variances and other
use permits. I am hoping that this can be simplified so that the
City personnel can make these recordings without the assistance of
the City Attorney. I really feel it would be expensive to take the
attorney's time to handle this procedural aspect and it might be
wise to try to work collectively to try to establish a format,
but the actual follow through should be done by city personnel.
I have also contacted Representative Bill Schreiber and have
asked him to review this and see if it could not be-modified or elimin~
Mr. Schreiber was not aware of these changes being included in the law,
and he investigated it for me and found that these were requirements
applicable to county planning activities and some one slipped it into
the municipal planning act. I do not believe that this is of any
advantage to the city and adds only bureaucratic regulations and
duties which are non-productive and take a great deal of
administrative time. I have tried to keep Mr. Schreiber and Duke
Addicks of the League of Municipalities involved, and maybe it is
my personal opinion, but I would like to see those sections repealed
as it relates to municipal planning activities.
If I can be of further help to you in establishing a procedure
for handling this process, please advise.
Very truly y~
City Attorney
CAP:Ih
Enclosures
DIVISION OF PUBLIC RECORDS
County Recorder
A-800 Government Center
Minneapolis, MN 55487
January 11, 1983
FROM: Hennepin County Recorder/Registrar of Titles
Chapter S07, 1982 Session Laws, Sections 2S & 26 (Conditional Use
Permits - Municipalities, Minnesota Statutes 462.3S95 and 462.36)
This notice is in response to the questions being asked by various law firms
that handle the business of municipalities in Hennepin County.
One concern is what the Recorder and Registrar will accept for recording regard-
ing Conditional Use Permits and Variances. The County Recorder will accept
certified copies of either of the aforementioned documents and the Registrar will
accept only certified copies of the Conditional Use Permits. As a practical
matter for all concerned, we would like to see them recorded in the rom of
certified copies of either a Resolution, or an ordinance, and be in the shortest
form possible, preferably one page c~nsisting only of 1) the name of the person,
or persons, being granted the permit or variance, 2) the legal d~scription of
the affected land, 3) an expiration date when applicable, and 4) the clerk's
certification. For Conditional Use Permits filed in the Torrens office, the
legal description must conform to that on the certificate of title. You may want
to reference a statute number and include a sentence directing anyone examining
title to the location of the actual permit, or variance, and any maps or draw-
ings acccmpanying it.
Our offices will accept only those permits, or variances, which have been granted
by the municipality, NOT those which have been denied. The Torrens office does
not anticipate the need to receive the owner's duplicate certificate of title.
Regarding filing fees, we believe that the variance, or permit, benefits the party
to whom it was granted and not the municipality., so would NOT be eligible for re-
cording without payment of fees under M.S. 386.77 which requires that the instru-
ment by its terms be for the benefit of the subdivision and that it be presented
for recording by the same.
Please feel free to contact either Bob Baker at 348-3050, or Jan Witkowski at
348-3070 if you ~4sh to discuss any of the above issues, or offer suggestions.
We hope this gives you a basis fr~nwhich you can prepare your documents.
HENNEPIN COUNTY
on ~'qual opportunity ~'mploycr
BILLS -MARCH 1, 1983
Air Comm
Feed-Rite Controls
Sharon Legg
City of Mound
Munici-pals
Northland Electric Supply
N.S.P.
Popham, Haik, Schnobrich
Pitney Bowes Credit
Reo-Raj Kennels
Real One Acquisitions
City of Richfield
Sterling Electric Co.
T & T Maintenance
Thurk Bros Chev.
Van Waters & Rogers
13.80
915.O0
7.00
35.00
5.00
139.86
118.25
289.81
26.00
394.00
84.O8
635.OO
134.70
54.25
485.45
358.20
TOTAL BILLS
4,695.4O
'. Request Fees be waived.
' ' CITY OF HOUND Fee Paid
Street Address of Property. 2461 Commerce Blvd.
Legal'Des~ripti.on of Property: tot .
Addition Legal' Description Attached
APPLICATION TO PLANNING & ZONING COflfllSSlON
(Please :ype the following informatlon)
PlO No.
Date Filed
Block
Owner's Name Westonka Elderly ~ Handicapped Housir~e~y Phone No.291-.1750" ..
Addresg 328 West 6th St.; St. 'Paul, MN S5102
.Appli.cant '(if othe~ than owner}: Contact Person
Name John L. Rocheford, Jr.
-Address 528 W. 6th st. ; st. Paul, MN ~5102
Day .Phone No.291-1750
Type. of Request:
(X} Varl'ance (X) Conditlbnal Use Permit
( ) Zoning Interpretation & Review
( } Wetland Permit ( ) P.U.D.
*.lC.other, specify:
4)Presenl~ Zoning District B-1 Business District
7- EXisting Use(s} of Property
Amendment.
S i gn Perm1 t
( )*Other
Has an ap'.plicat[on ever been made for zoning, variance, or cOnditional use permit or
to our
other zon,ng procedure for this property?NO. ]~nowledge If so, .list date(s) of
list date(s} of application, action taken and provide Resolution No.(s)
Copies of previous resolutions shall accompany present request.
I certify that all"of the above statements and the statements contel.ned in any required
papers or plans to be submitted herewith are true and accurate. I consent to the entry in
or upon the premises described In .this applica~JOnlby any authorized official of the City
:ting _
of Hound for the' purpose of iO~( , or of~tlng, maintaining and removinq such
notices-as may be require .
Signature of Applicant ' ' ~ /-'Z-'7~_~
Planning Commission Recomafendation: ~ · a~te
Date
Council Act'ion:
Regolution No.
t
Date
Legal for Case'No. 83-109
Lots 4,S,6,7, and 8, GUILFORD'S RE-ARRANGEMENT OF LOTS IN MOUND
BAY PARK, according to the recorded plat thereof, Hennepin County,
Minnesota, except those parts of said Lots 4 and S, lying easterly
and northerly of the following described line:
Beginning at a point on the North line of said Lot 4 distant
1SS.00 feet Westerly of the Northeast corner of said Lot 4;
..thence Southerly deflecting 90 degrees to a point that is.
10.00 feet Northerly of, as measured at right angles to the
· Southerly line of said Lot S; thence Elasterly 10.00 feet from
and parallel with said Southerly line of Lot S. to the Easterly
line Oflsaid Lot S and said line terminating.
O. Locat|on of: Signs, easements; underground utilitles, etc.
E. Indicate North compass direction
.F..Any addltional information as may reasonably be required by the City gtaff
and applicable Sections of the Zoning Ordinance.
III. Request for a Zonin9 Varian'ce
A. All information below, a slte plan,.as described in Part II, and general
application must be provided before a hearing.will be scheduled.
B. Does the present use of. the property' conform to al I use regulations for
the zone district in which it is located? Yes
If "no", specify each n~n-conformlng use:
· . Vacant
Do the existing structures comply with all area height'and bulk regulations
for the zone district ln'whlch iris.locAted? Yes
If )'no", .speci fy' each nonTconformlng .use.=
.,. V~e~nt '
D. Which Unique physical' characteristics of the subject property prevent Its
reasonable use for any of the.uses permitted in that zoning district?
( ) .Too nar~bw (.) Topography ( ) Soil
( )- Too. small .. ( ) Drainage. .. ( ) Sub-surface
( ) Too shallow -' ( ) Shape (~g) Other: Specify:
Parking - Unit Size - Side Yard
Was the hardship described above created by the action of anyone having
property interests in the land afte~ the Zoning Ordinance was adopted?
Yes ( ) No (YJC) If yes, explain:
Was the hardship created by any 'other man-made change, such' as the reloca-
tion of a road? Yes ( )' No ~:X) If yes, explain:
Are the conditions of hardship for'which you request a variance peculiar
only to the property described in this petition? Yes' ( ) No (ZX}
'If no, how many other properties are similarly affected?
H.-.What is the "minimum" modification (variance) fro~ the area-bulk regulations
that will permit you tO make reasonable use of your land? (Specify, uslng
maps, site plans with dimensions and written explanation. Attach additional
sheets, if necessary.)
,Mortgage commitment limitations
Will granting of the variance be materially detrimental to'property 'in the
same zone, or to the enforcement of thls ordinance?
Procedure for Conditional Use Permit
D.
E.
F.
(2) Case # 83-109
Location of: Signs, easements, underground ut|lities, etc.
Indicate North compass direction.
taff
^ny additional information as may reasonably be required by the City S
and appllcable Sections of the Zoning Ordinance. ' ....
!11 Request for a Condltlonal Use
A. All information requested below, a site'plan as described in Part il, and
a development schedule providing reasonable guarantees for the completion .
of the construction must be provided before a hearing will be.scheduled.
B. Type of development for which a Conditional Use Permit is requested:
1. Conditional Use (Specify): Multi - Family Housin~
2. Current Zoning and .Designation in the future Land Use Plan for Mound
B-1 ·Central Business
De
Development Schedule: '. ..
1. A development schedule shall b~ attached to this application providing
reasonable guarantees for ~he completlon of the proposed development.
2L Estimate of cost of the project:' $_1,600,000.00
Density (for reside~tlal developments only): ..
1. Number of structures:' one
2. Dwelling Units-Per Structure:
a. Number of type:
Efficiency
2 Bedroom 1
]. Lot area per dwelling unit:
~. Total lot area: 44,1Zg
Effects.of the Proposed Use
A®
42
I Bedroom 41
3 Bedroom
1,050 sq. ft.
List impacts the proposed use will have on property in the vicinity, In-
Cluding, but not limited to traffic, noise, light, smoke/odor, parking,
and, describe the steps taken to mitigate or ellminate the Impacts.
Impa~t of proposal to be 'presented at meeting
CITY of MOUND
Case No. 83-10~
5341 MAYWOOD ROAD
MOUND, MINNESOTA 55364
(612) 472-1155
TO:
FROM:
DATE:
RE:
Jan Bertrand, Building Official
Rob Chelseth; City Planner
January 7, 1982.
Westonka Elderly Housing Request
After our meeting wlth John Rochefor~ to review the proposals of the Community
Development Corporation, ! have 'noted.the following planning and zoning Issues
which need to be addressed.
· The lot Is located in the B-1 Central Busines~ District; the proposed 42 unit
multi-family project is a COhdition&l'Use under this District. It is impor-
tant to note that as it is located in the B-1 District, the use is generally
subject to the lot area, height and width requirements specified under this
Section (23.625.5), However, given the facts that the use is a conditional
one, and that under Section 23.505.2, the City Council mag impose conditions
.it con~iders necessary to protect the best interests of the community as g
hl~.~_!e, it is recommended that the standards set forth in Section 23.620.6 of
the R-4 District serve as a basis for formulating the requirements of the
Conditional Use Permit'. In reviewing the project against these conditions,
the following exceptions to the requirements have been found:
1. Side yards'of 20 feet or building height (whichever is greater) are
required for multiple family uses in the R-4 District. The need for
T this setback is well documented from a fire protection and public
safety standpoint. Current plans show no sideyard setback on. the north
side of the building. ..
he Conditional Use Permit should r~quire one of the following: 1) if
reasonable and practical, the addition of the required footage to the side
lot through the acquisition of adjacent land; or, 2) require the applicant
to obtain a permanent easement from the adjacent property owner which states
that the adjacent side yard area will be kept permanently open,'without
buildings or structures,' and providing unlimited access for emergency and
construction vehlcles. The depth of thls side~r-~hould be determined in
discussions with the Fire Chief; a range of~~)feet is recommended..
2. The R-4 District would require a lot over two acres in size. It is
recommended that, given the downto~nlocation of the use and its restric-
tion to elderly persons as tenants, that the lot area required be set
so that the maximum area covered by the use does no: e×c~e~ ~0 pcrcc..nt
of the 1~ area (Section 23.620.7(3a)). This should provide sufficient
area for the building and all associated uses.
Some parking places will be located within 2½ feet of the south side
property line. Although a ten foot setback is called for in the R-4
District standards, a less restrictive standard is recommended as
Case No. 8~-109. '.
TO: Jan Bertrand, Building Official. .
RE: Westonka Elderly Housing Request
January 7, 1983 - Page 2
acceptable in this case, based upon the higher densities in the B-1
District. Screening in th~ form of fences or vegetation maybe required
of appropriate given the land use on the adjacent lot.
4. The Conditional Use Permit should be subject to final approval of the
subdivision of this parcel.
In addition to'the above named conditions, the use will require variances from
three provisions of the Zoning Code.
1. Section 23.410 requires a. minimum o quare feet for a one bedroom
unit. lhe majority of these units will. be $30 square..~eet in size, based
upon the allowable maximum area set by'th~'U.S. Oepartment of HOusing and
Urban Development for housing constructed for the elderly using Federal
money, lhe applicant should be requested to file documents attesting to
these constraints as a basis for considering the variance.
2. Section 23.716 P^RKING requires(~i"05 space.~2.5 X 42'units) a minimum.
of 10 feet by 20'~"~-'~ Tn size..~ - ~'"''^~'m'-i-~'~e is requested here to permit
smaller spaces'(18 X 9 feet) that fit the maximums allowed by HUD, and
for a.j:~-c[j~tion in the'number of parking spaces required (to a range
of~25't6 40~ Again, the applicant should be requested to provide do,u-
men--hat 18 X 9 feet is the maximum allowable by HUD for a, parking
space. In terms of the reduction in the number of spaces, the applicant
should provide statistics on car ownership and visitor parking experiences
for buildings of a similar design, occupancy and location that the City
can check and compare.
Rob Chelseth
City Planner
RC/ms
CITY of MOUND
MEMORANDUM
CASE NO. 83-110
5341 MAYWOOD ROAD
MOUND, MINNESOTA 55364
(612) 472-1155
TO:
FROM:
DATE:
SUBJECT:
Mound City Planning Commission
Rob Chelseth, City Planner
22 February 1983
Proposed Lost Lake Addition Subdivision
This request is to rezone the Lost Lake property fro~ R-I Sin_qle Family
ly Residential. A review of the Mound Compre--'
spec~ea including this parcel is planned
for Iow density residential development (about 4 units per acre). The
requested rezoning to R-3 would increase this density slightly, into the
range..~re. Given the facts that: 1) land to the
immediate wes~-E~ the property is currently planned and zoned for R-3
density development; 2) the remaining land to the west is wetland - unsuit-
able for'urban development; and, 3) land immediately south of the property
is zoned R-2, allowing single family home on 6,000 square foot lots; the
requested rezoning, ~stent with the current
lan contains several-~cumstances~ e excep-
tion to the exact etal s on t e an use plan map. Specifically, under
the Plan Policies Section, containing Plan Policies for Housing, Item "c"
states: "Establish duplex zoning where contiguous blocks maintain an exis-
ting duplex structure or vacant lot development potential". The proposed
rezoning appears to be consistent with this land use planning policy for
housing proposals.
There are several other very important issues that should be addressed before
a rezoning is granted. These questions, to which the Planning Commission
should request the applicant to provide answers, include:
1. Evidence that the soils and slope on the parcel (especially to the north)
are suitable locations for higher density development.
2. As there is only one street frontage on the lot, the plan has been de-
veloped with a very long cul-de-sac (far longer than standard planning
principles suggest). This could lead to snowplowing problems, and traffic
problems given the higher density and availability of only one outlet. It
is strongly recommended that the developer seek a second outlet on the
north side of the property.
3. Several lots are very narrow, and oddly shaped. The applicant must realize
that the rezonlng of the property in no way implies approval of the pro-
posed plat. A new plat review process must be started if the rezoning is
approved.
"Rob Chelseth
RC/ms
RE CE IVFD FEB $ ¢J83
COMBS-KNUTSON ASSOCIATES, INC.
CONSULTING ENGINEERS [] LAND SURVEYORS [] PLANNERS
CASE
NO.
83-!
10
February 22, 1983
Reply To:
12800 Industrial Park Boulevard
Plymouth, Minnesota 55441
(612) 559-3700
Jan Bertrand
City of Mound
5341 Maywood Road
Mound, MN 55364'
Subject:
Dear Jan:
City of Mound
Proposed Subdivision
Lost Lake Addition
File 96383
Having reviewed the latest drawing submitted for rezoning
on the above property, we offer the following comments:
We feel the proposed cul-de-sac is excessively long for
the number of housing units (32) being served. This
cul-de-sac is proposed to be approximately 900 feet
long, whereas under normal conditions, new installations
are limited to 600 feet. The possibility of extending
this street through to Maywood Road could be investigated~
since the sanitary sewer and watermain will need to
connect to the existing mains in Maywood Road.
e
If'the property is rezoned, the owner should be required
to resubmit complete preliminary grading and utility plans
in order to receive preliminary plat approval. The existing
preliminary plat approval should not be transferred to
the new layout since numerous changes have been made.
If you have any questions, please contact me.
Very truly yours,
McCOMBS-KNUTSON ASSOCIATES, INC.
~amero~
JC :sj
printed on recycled paper
CITY OF HOUND .CASE NO.
83-1 0
Fee Pal d.~
Date Fi led~.~'
' [e~ ~ ~4 APPLICATION TO PLANNING & ZONING COHHISSlOhl
(' ,," ~,'~O'U.~[~ (Pleas~ typ~ thc followin9 infor~tion) .
Street Address of Property.
Metes and Bounds Description
t~gal gescriptipn of Property: Lot 2~ ~~__ Block
Addition Auditor's Subdivision No. 170 PID No. 2q-!17-2~ 22 0018
Owner's Name ~ ~ )/,~' ~ /~~ .Day Phone No. ~2~- ~')1
Address' / r~ 0 '~~~' ~... ~ ~ .
Applicant '(if other than owner):
Name Day .Phone No.
-Address
Type. of Request:
(.) Var|'ance
( ) Zoning Interpretation ~ Review
( ) Wetland Permit ( ) P.U.D.
( ) Conditi6nal Use Permit
*if other, specify:
:?~.resent'Zoning Distr.ict '
Amendment
~ Sign Permit
)*Other
Existing Use(s) of Property· ,
Has an'apPlication ever been made for zoning, variance, or conditional use permit or
other zoning procedure for this property? ~ If so, lls~ date(s) of
Jist date(s) of application, action taken and provide Resolution No.(s)
Copies of previous resolutions shall accompany present request·
certify that all'of the above statements and the statements contained in any required
,apers or plans to be submitted herewith are true and accurate.. ! consent to the e~try in
.r upon the premises described in .this appllcaAion by any authorized official of the'City
.f Hound for the' purpose of inspecting, or of posting, maintaining and removing such
,otices as may be required by law.
;ignature of App1 icant .-~~ ~-d~r)~ Date ~ '~" ~t
'lanning Commission Recommendation:
Date
:ouncil Act'ion:
Re~olution No.
Date
Procedure for Zoning Amendments (2) Case # 83-110
E LAND DEPT
:HSIDE DEVELOPERS
· NEL~Otl
'HAT PART OF THE N 6~57.~r FT OF LOT B
fLY E~ OF THE ~ LINE OF LOT Z~
~F THE E 6~7.5 FT OF LOT Sq AUD SU~O
; LINE OF LOT 13 SHIRLEY IIZLLS UHZT O
UBO NO 170 DES AS FOLLONS DER AT THE
AID AUO 5UBD NO 170 14[Ttl TItE NLY EXT
ILLS ~ZT D TH 0:~ AN ASSU~ED BEARING
0 A DIS OF SI FT TH S q6 OEG N 08 FT
29 FT TH S [7 bEG E 89 FT TH S
~[ DEG N 58 FT TH S 63 DEG 30 HIN N
HE NELY EXT. OF THE NLY LINE OF LOT
R~D EX TO THE N LINE OF LOT ~0 AUO
0 THE SM CO~ OF LOT ~0 Ttl NELY
LINE OF LOT ZO TII ti ALOHG SAID E
· ~ SO AND ~[ OF THE BARTLETT PLACE
F LOT 3Z OF Tile DAETLE~ PLACE UPPER
gOH THE N~ COR OF SAZO LOT ~ TO A
0~5 OF ~0 FT NELY FRO~ THE S~ COE
AUDITOR'S SUB3ZVZSION NO. 170
006.0q 277 3
STATUS: CURRENT
SHIRLEY HILLS UNIT O LYING S OF THE
SltIRLEY HILLS L~IT O ALSO THAT PARr
NO 170 LYING S OF Tile NLY EX'T OF THE
ALSO THAT PART OF LOTS 19 AND ~0 AUO
INTEI~,~ECTTON DF THE E LINE OF LOT
OF THE $ LINE OF LOT [3 OF SHIRLEY
OF ~ PA,~ NZTi! THE N L'~IiE OF SA:ID LOT
TH $ q0 DEG N :[21 FT TH S 3:~ DEG 14
B DEG E 20]. FT T!! S 19 BEG N 67 FT TH
59 FT TH S 5 OEG 30 MZN N 120 FT TO
[8 SAID AID SUB NO 170 TH HELY ALONG
SUBD NO 170 TH SLY ALOHG SAZO N LIHE
ALONG THE SLY LIHE OF LOT ~0 TO THE
LINE TO THE POINT OF BEG ALSO LOT
UPPER LAKE ~tINNETOgKA AL~O THAT PART
LAKE HZN,'I£TON~(A LYING E OF A L:[NE EUN
POINT ON THE SLY LINE OF SA[O LOT 3~
THOF
6~90
Legal Description for
Case No. 83-110
Amendment to Hap:
It is requested [hat ~he property described belo~ and sho~n on the attache~'
site plan be rezoned'from "~'"f' to ~- ~ .
Address of Property:
· .
Legal description of property (lot.~ block, subdivision or metes and bounds)
Attach additional sheets, if necessary)
Note:
Present Use of Property: ...... ~c~
· Reason for Amendment :, -'~ .,.-~'~ . ~ ~ ~ ~ ,/-/~'~
No application of a property owner for an amendment to the text of the ordl- .-
nance or the zoning map shall be considered by the Planning Commission within
one year period following a denial of such request.
The Indians' new bingo hall near Prior Lake is the.
most recent addition to. the bingo subCUlture that
generates some $10 million a year just in Minneapolis,
And the hall's high stakes are making the VFW and
the Catholics very nervous.
· ' by M. Howard Gelfanda
· Debbie Joy doesn't try to kid herself. She knows that something more power-
ful than pure recreation has pulled her from her home on this winter night,
· 'yanked her from her husband and two kids ahd taken her on a long bus ride
to an Indian reservation near Prior Lake. She worries a bit, wondering
whether she'll spend every cent of the $40 in her purse. But there isn't much
· time for anxiety, because the bus is pulling onto the rocky roads of the
Mdewakanton Sioux Reservation. The action is about to begin, and it's too
late to stop now..
Debbie Joy and the 27 other passengers are'about to enter a fantasy land
where they can be alone with their compulsion. This prefabricated world has
the decor of a K-Mart, the lighting of an operating room and the smokey ah'
· quality of a 5-alarm fire. More importafifly, it has something unmatched in
the world outside the reservation: big-money bingo.
Until Oct. 16, the simple game of bingo belonged to the Veterans of For-
eign Wars and the American Legion and the Catholic church. But then a Bos-
ton company, N~w England Entertainment, made this obscure reservation
Bingo Heaven. The VFWs and Legions, restricted by Minnesota law, can give
out prizes of no more than $100 for most games; typically winners get $10 or
less. These restrictions don't apply on Indian reservations, though; what's fl-
legal in a state is illegal on an Indian reservation, but what's regulated in a
state is often unregulated on a reservation.
The Little Six Bingo Palace--the name is taken from 'the son of the legen-
dary Chief Shakopee--is a sort of wry revenge on the comfortable establish-
ment in the Twin Cities 30 miles north. For nearly 100 years the Shakopee
Mdewakanton Sioux Reservation, as it is formally called, has stood nearly
desolate and forgotten while the world crept steadily toward its borders. The
city of Prior Lake surrounds the reservation, and the things of civilization-- '
sewers and sidewalks and shiny new roads--advance like armies of the night..
This place was supposed to be a reward to the Sioux who hid White men
during the Sioux uprising in 1882, but it never seemed like much of a prize.
Septic tanks and mobile homes and gravel roads told the story. Even now, its
256 acres are home to only 164 people.
Until the SI-million bingo hall went up last year, the only things that
brought the outside world to the reservation were cigarettes. Unfettered by
state taxes, the Indians sell cartons of smokes for $2 less than they cost off the
reservation. Until Oct. 16, the battered trailer that serves as a smoke shop was
the center of commerce on the reservation. Not so anymore. The 1,300-seat
~ bingo hall is at least half full most nights. Norman Crooks, the chairman of
r, the reservation, says he plans to turn the bingo money into a medical clinic
a~ and paved roads and an arts center. After New England Entertainment's
~ vestment is recouped--sometime this summer, Crooks says--the Indians are
~ supposed to get 55 percent of the profits.
MPLS ST. PAUL MARCH 1985 85
Bingo addicts like Debbie Joy do
their best to assure those profits are
high. Bingo is. not one of your better
gambling investments. A bookmaker
charges a commission of l0 percent--~.
and that's only for a losing bet. A
skilled blackjack player can shave a ca-
sino's edge to next to nothing. Even the
cruelest of casino games, keno, is con-
tent with a 25 percent bite. But bingo, a
close cousin of keno, takes as big a bite
as the house wants it to. And few bingo
halls--whether run by a veterans'
group or the pros from New England--
are content with one quarter of the pie.
According to Bob Page, general
manager 6f the Little Six, the average
nighty pay-out is more than $I0,000.
He says 65,000 people played bingo in
the palace's first 90 days, a nightly aver-
age of 722; those 722 spent an average
of $25 each on bingo, he says.
· Using Page's figures, the average
daily bingo revenue at the Little Six
would be $18,050. Assuming that the
Little Six paid out $10,500 a night, the
house would get a bite of 42 percent.
B Ut cold percentages are not on
Debbie Joy's mind as she takes
'her $16 admission package to her
seat. The $16 gives her four bingo
boards, each of which has three cards.
Like most bingo veterans, she doesn't
get enough action with just 12 cards at a
time, so she spends $5 for three extra
boards. Now she can play 21 cards at a
time, the most allowed tonight because
of space limitations. On this Saturday
evening the place is nearly full.
The action begins at 7:15 with a
"Warm-up game"--a game with a
purse of a mere $100. To the bingo
rookie, the action is frenetic, the 504
numbers in front ofDebbie Joya statis-
tical overload. But she finds the 20 sec-
onds between calls more than enough
lime. "It's really slow here,;' she says.
'"Boy, at the Legion halls they've got
callers who go so fast I'm a nervous
w~eck."
$oy's fingers dance across the bingo
boards as soon as the next number ap-
pears on the television monitor. By the
time the caller announces the number, a
few seconds later, her plastic markers
have been deposited on th~ appropriate
squares. Joy can sense when a number
on the monitor will make someone in
the hall a winner--sure enough, sec-
onds later, a soft groan fippIes across
the auditorium. Then Joy and the other
veterans wave a magnetized wand'
across the bingo boards to scoop up the
markers, which are embedded with
little pieces of metal.
Debbie $oy's hard luck is running
true to form in the early games, but
that's no matter. Later on come the get-
rich-quick games, one of which will be
worth $19,$00 tonight if someone can
cover all eight numbers on a mini-card
by the time 20 numbers are called.
"Bingo people are goofy," says
Chick McCuen, who is seated a few
bles away. "They'll saytheydon't want
to win early because it'll spoil their luck
for the big ones. But if this is your night,
it doesn't matter what you do. See what
I mean?" McCuen raises his arms and
yells "Bingol"
McCuen used to be famous for being
the answer to a Twin Cities trivia ques-
tion: "Who preceded Dave Moore as
the Channel 4 anchorman?" Now he's
famous at the Little Six for being a reg-
ular-and lucky--player.
McCuen admits to being hooked on
bingo, but, he adds, "You're pretty
lucky if this is the worst thing you get
hooked on. You spend less here than
you do at a bar. How much? You don'.t
count it. If you did, you wouldn't corse
~ ,,
....... ~learl¥~ it isn,t the money that draws - i . ·
· these people here. It's that intangible I '
thrill gamblers call '"action," the cx-
dtement that takes them from a life of ~ · ' '
inconquerable fear and anxiety and 'f bingo isn't a matter of life or
puts them in another world equally as
fearful and anxious. But here the ex-
citcment is silly and contrived and in-
tensified, obscuring the pain of every-
day llfe. Here, the chance of success is
no better than it is on the outside, but
ldeath, it comes awfully close at the
Little Six. Roger Reed, for example,
is here tonight and most other nights
too. Reed runs a diner in Spring Valley,
Minn., about 25 miles south of Roch-
ester. He gets up at 5 a.m. to open the
there is always 'this: The odds can be diner, and when he stops working at
ov,e,r~come. .~ . '. ., ' . 4 p m. he heads for the Little Six He
i suppose ive pus a zew monsana ~ ,~la~ ,,-ell ln.~n then h-oa~
dollars into bingo," Debbie Joy is say- [ ~nc~ ~hr~ nr"t;n"~'~ hn,,r~
mgnow, butit s about the only thing I I ~,,~a rln,~n't ,~nm,. ,~,,.ru
do for fun. With a?-year-old and an 18- : ........ '9'. '":' -'~;
.... ~' ~Id ~' ~-e · a~_,, ..., out ~e 1 Thursdays there is bingo at the VFW.
· ,,~,,-,-~ ,~ ,,u,,. ',' ~'~"~ ~ ~'.~' ' ~', t hail in S-rin-p a Valle'y, and althou-'-~ the
.the house all day. I m not saying ! d ~ln ~,,~ o.,.m ;,,~o~ilq,~,t
jump offa bridgeifit wasn't for bingo, ::-~" ..... :" ~'~:~'".' .... ."~.
~.. · ..~--..,1...~ :, .... ,~.., ...... ,, ~ou purses here, ne nas a certain sense
.. · of c~vic loymty.
She is hardly alone. The regulars at ~,.,~4 Is ,~,~o, ,,,~,,,a
the Little Six talk about the night a ............ ~
woman collapsed at the table and had
to be revived by paramedics. A few
minutes later she was back at the table,
back for more action despite the para-
medics' protests.
~ There are stories that soUnd apocry-'
phal but ring truer than fact. Says Mc-
Cuen: "I was playing bingo in Illinois
one night at a Legion hall. Well, they
told this woman next to us that she had
an emergency phone call. It was a small
hall, and we could hear every word she
said. 'Oh, that's terrible,' she said. 'Oh,
that's terrible. What hospital is he in?'
She rushed back to the table and said,
'There's been an emergency. I'm going
· to have to leave after five or six more
games.'"
"I play heavy" is the way he puts it.
He has managed to crowd eight boa~ds
in front of him tonight, meaning he's
playing 24 cards. Before the Little Six
i opened, he'd play at the Knights of Co-
~ lumbns or VFW halls in the Twin Cit-
ies. Some nights he'd play 30 cards and
leave $90 behind. Here, he says, he can
get by for $30. The winning makes it all
worth it. One night he won a $750 pot,
another night a $500 one.
Bingo is also part business for Reed.
He leads a tour bus from Rochester
every week or two. Tonight there were
35 on the bus. But of course this is only
part of it. "Some nlghts,'~ Reed says,
"I wake up yelling 'Bingol' My wife
will shake me,' and I'll say, 'Doggone it,
you'll spoil my coveralll'"
This is bingo humor. A coverall is
bingo's biggest come-on. In this game,
you must cover all 24 numbers on your
card, and you must do it by the time 50
numbers are called. State laws assure
the lure of the coverall, letting it pay up
to $500. For all other games, it's illegal
for bingo halls to give out purses of
more than $100 per game.
At the Little Six, where state regula-
tions are inconsequential, the coverall
starts with a $2,000 purse. If there are
'no winners after 50 numbers, the pot
grows by $1,000 each night, and the
number of calls increases by one until
there is $I0,000 in the pot. Then num-
bers are called until there's a winner.
One person rarely wins the whole
jackpot in any game, because with at
least 700 people in the place every night,
the odds dictate that most bingos will be
shared by three or four people. One
person rarely wins the coverall, period.
Those who think they'll win it in 50
numbers al'e, like Reed, dreaming. The
odds, according to University of Min-
nesota mathematics professor Bert
Fristedt, are 212,169 to 1.
Even more lucrative than the cover-
all is the ,do-it-yourself'' game. Play-
".This woman next to us.
had an emergency phone
call. 'Oh, that's terrible,'
she said. 'Oh, that's
terrible. What hospital is he
in?' She rushed back to the
bingo table and said,
'There'S been an
emergency. I'm going t°
have to leave after five or
six more games. '"
ers write down any eight numbers on a
card, a copy of which goes to tlie house.
For the fa'st I0 nights, the purse is
$5,000 for a bingo by the time 20 num-
bers are called. Then the pot starts
growing by $500 per night. Fristedt,
who'se specialty is probability theory,
says the odds here are better, just
133,929 to 1. On this Saturday night,
the pot had grown to $19,500;
But for the one person in 133,929, the
prize is worth more th~_n what $19,500
normally is worth. This is a cash bud-
ness; no bothersome checks for the In-.
ternal Revenue Service to trace. Lately,
the IRS has been asking the Little Six to
keep a record of those who win more
than $1,500. The matter of whether it
has to hasn't been fully resolved. There
seems to be a difference of opinion.
Not surprisingly, the folks who run
the Legion and VFW games are.con-
cerned about the big jackpots luring
customers away. It's hard for them to
understand why the folks on the reser-'
ration don:t have. to abide by the very
laws the veterans served thdr country
to defend.
"A lot of bin'go managers are start-'
ing to panic," says Charles Osowski,-
who manages the bingo game at the
Millam Magnuson VFW post at 2727
Central Ay. in northeast Minneapolis.
"And like anyone who panics, they're
starting to get desperate. About the
only thing the state could do for us is
raise the amount of money we could
give away, and they don't want to do
that because it would be making it out-
fight gambling."
continued on page 104
MPLS.ST. PAUL MARCH 1985
N.%%%%%'~.i%".'.',.'%%%%a,~%a.%%~.'.%%%N'.%N%d~
BL~GO continued from page 88
The Uttle Six caller will pay out $100 this game,
42 percent cut of this night's revenue.
Bingo, yoU must understand, is not
gambling. Not when it's run by
the VFW or the American Legion
or the Catholic church. The state bingo
laws, a treasure chest of nonsense, hy-
pocrisy and doubletalk, grant special
dispensation to nonprofit organiza-
tions to conduct bingo. Don't give
away more than $2,500 a night, they
say, don't operate more than two nights.
a week, and don't pay anyone more
than $20 an hour to work a bingo game.
Avoid those and a few other sins and
"Bingo shaft not be construed as a lot-
tery or as gambling ....
The legislators were right. Bingo
isn't gambling. It's more like stealing.
And it's big business, even if it's un-
known outside the bingo subculture.
The law prohibits bingo halls from ad-
vertising their games, so the bingo
world is a society of whispers. But in
Minneapolis alon~ 72 places are li-
censed to run bingo games; 44 of those
games run the maximum two times a
week and four hours per session. Reve-
nues from the most recently reported
12-month periodg were added up not
long ago, and here's what they came to:
$9,952,706. That's nine million nine-
hundred and fifty-two thousand seven
hundred and six dollars. And, while
we're at it, 70 cents.
Most of that money goes back to the
players. Most. But more than $3.5 mil-
lion went to the bingo hails. And the
but the house will end UP taking a
bigger.halis tended to take bigger bites..
Thc game that 'Osowski manages,
· forexample, tookmorethan60percent ·
of the action--a percentage beyond the
most avaricious dreams of the bullies
said to control Las Vegas. His ~
post, which runs one of the biggest
games in Minneapolis, took in $351,314
from Oct. 1, 1981, to Aug. 31, 1982.
(Bingo halls report revenue by the f~scal
year.) Pay-outs totaled $138,982.
There's a notion in some quarters
that all this money goes to orphans and
_ researchers looking for a cure for can-
cer. Not so. True, the law says the
money has to be spent for the benefit of
the commonweal, but that's a pretty
broad def'mition---one that includes
"improving, expanding, maintaining
or repairing real property owned or
leased by an organization."
Invariably, the two biggest expendi-
tures from bingo loot are wages and
rent. The wages--often close to the $20
an hour allowed by state law--flow to
the organization that runs the game.
The Millam Magnnson game provided
VFW members with $35,882 in the
most recent ll-month reporting peri-
od. Rent provides the organizations
with their coziest cushion. Most groups
allow themselves a tidy sum for renting
the bingo halls. For instance, the VFW
spot at 2727 Central Av. NE. paid
$31,200 to its own holding company.
That money can be spent free of the
bingo law's restrictions.
This isn't to Suggest that the money
doesn't often go to worthy causes. Most
recently Osowski's-game reported
charitable contributions of $8,749.03
(on a profit of $68,249), and the games
produce significant tax revenues. The
$9.9 million in total Minneapolis bingo
.revenues, taxed at $ percent, meant
nearly $500,000 for the state. And the
city's 3 percent tax meant that another
$2.99,000 flowed to the people. The Lit-
tie Six game, meanwhile, produc~s .no
revenue for. the city or state because In-'
dian reservations are exempt from mu-'
nicip~l and state taxes.
There is no indication that bingo
games in the Twin Cities are nm with
anything short of absolute integrity.
The same cannot be said of other
places. Bingo is big business just about
everyw,here in the United States, and
it's ofte~ controlled by people,whose
primary concern is not charity. Bingo is
legal in 42 states, and Forbes magazine
estimated in 1979 that $4.5 billion is
spent each year on it.
Minnesota keeps bingo clean by
making sure it's decentralized. The ac-
tion can't be run by pros, only by mem-
bers of the group conducting the game.
Law-enforcement authorities in
ami, Chicago, Atlanta and Los Angeles
believe many g .ames in their jurisdiction
serve mainly to line the pockets of
ganized crime. Among the secrets
probably buried this year with .Allen
Dorfman, who. was gunned down in
Chicago, were the methods' used by
Teamsters officials to nm bingo games
in Chicfigo. Dorfman, a former Team-
sters 'executive, .founded a Chicago
bingo hall that authorities in Illinois be-
lieve was used to funnel cash for un-
worthy causes.'
There are, naturally, those wh6 fear
that bingo on the Indian reservation
could fall into illicit hands. Any cash-
only business is attractive to the under-
world, and the company that runs the
Prior Lake game--and similar ones in
Arizona, Washington and Florida--is
sure to be eyed with suspicion.
The fact remains, however, that if
the Little Six provides Indians' with
roads, doctors and jobs (22 reservation
residents work part-time at thehall), its
value to the community Will probably
compare well with that of the VFW and
Legion.
That will not stop the bingo man-
agers in the cities from running scared,
though. On this Saturday night, they
were talking about a union to press for
equity ~vith the Little Six. These guys
were mad. Little Six flyers had shown
up on the windshields of cars parked in
front of VFW and Legion games. The
Little SIX had taken out an ad--some-
thing the city games can't do--in, of
all publications, the Catholic Bulletin.
The ad, circumventing postal restric-.
tlons concerning lotteries, advertised
something called "B----O."
"They won't stop here," were the
wolds of Dave De St. Hubert, who runs
a popular game at the Knights of Co-
lumbus Marian Hall in Bloomington.
"I f .they don't have to aNde by thelaws,
what's going to stop them'/"
De St. Hubert figures attendance at
his games is off about 20 percent--the
same figure used by Osowski; Both say
the economy has hurt them as much as
has the Little SIX, but history says other-
Wise. BingO's biggest surge in pop. ul~-
ity came during the Great Depression .m
the 1930s. And few players at the Lime.
Six are beginners
· If the people who run bingo games in
the city are suspicious of the Little Six~
the feeling is mutual. Norman Crooks
watches the players drive past the tribal
office and says,' 'It'll make 6s if it keeps
on. But 110ok down thc road about five
years, and the state will make a law to
make this obsolete. That'll just. about
kill us because then they Won't come 30
miles to play here. That's all they have
to do--just pass a law to open up bingo
and we'll be wiped out, just like they
were using an eraser~" · ..
Nor do the players all regard the city
· g .ames with warmth; "This is so good
that I've never been back to a Legion
h all or a VYW," McCuen says. "They're
nice people here and they run. a good,
clean game. I've seen some of those
church people cheat folks out of money
by calling the numbers too quick."
· The veterans' groups, he says, were.
aixogant. "They had a gravy train and
r~o competlti6n, and they never dreamed
t.hey'd h'ave competition. Now they're
screaming bloody murder. Well, I
don't think there's anyone he.re wh6
sheds a tear for them."
Debbie Joy sheds no tears as she gets
aboard the tour bus and heads back to
reality. She has. manaied to limit her
expenses to $27, and she Won $10 for
being one of 15 players to yell bingo in a
.$150 game. Someone who doesn't play
bingo might regard the evening as a $17
loss; Debbie Joy sees it as a $10 win..
She is smiling, and she keeps s&iling
until the bus deposits her and about 10
others at the Hub Shopping Center in
Richfield. They ali disappear into the
darkness, wrapped tightly against the
night, hurrying to their cars and their
homes and the v)hite light of reality.
As the bus pulls away to deliver the
other passengers to other shopping cen-
ters, its headlights play upon the gray
clouds of exhaust that puff out of their
cars, then leave the smoke behind in a
swirl of vapor.
Are we a depression? Or a recession? Neither.
The economy is throwing off an old skin and growing a new one.
The implications are favorable for the future.
~ O
I
~ NT£RNATIONAL HARV£ST£Rwas By .lames ¢oolr ergy-driven phenomenon, much writ-
perhaps to be expected: It had :____ ~ ten about but only &mly understood.
been headed for uoublc for years. But the massive It began with the need to save gasoline. It is ending with a
~.~'./~!ayoffs at Dcere & Co. and Caterpillar? Chrysler, a saving of everything--rubber, steel, glass and above all
long lagging number three, was one thing. But how do you
rauonalize the losses General Motors was generating on
auto producuon..' The entire U.S. car industry, running at
maybe one-third ~ts peak capacity..' Manville Corp. in
Chapter 11 .~ Big banks at the brink? You can go on and on.
Steel at 38% oi capacity, lowest since 1938, and operating
losses of hemorrhage proportions. Singledamily housing
starts still lagging despite the declines
in interest rates Off drilling col-
lapsed. Ten percent unemployment.
Little wonder the word "depression"
keeps popping up.
But if it is a devression we are under-
going, ,t is a strange, undesperate kind
of depression. There is plenty of worry
in the country, but rehmvely little real
suffering. Still working are 99.7 mil-
lion Americans---only 1.3 mi!lion few-
er than the alltime peak in 1981. Dis-
posabl~ income this year is at a record
high. Movie box-office receipts are the
highest in histo'y and so are advertis-
ing revenues. In contrast to the Thir-
ties, when the g~oss national product
fell 30%, the U.S. economy remains at
the highest level in histc~y.
Anyone who cal!s ti'as a depression
hasn't thc foggie~t nc, ao,~ ol' what a
real depression is like. i ic.~. do you
explain an industrial cotlap.~e t,cac-
compamed by an overall ec.,:omic
collapse.* Wh~re's the :,vn,mctry?
How can Akron. once thc tide capital
The new stanflard
Semiconductors are now the
model for industrial productiv-
ity. The price goes down down
down; the market goes up up up.
Semiconductors
labor. Though few people realized it at the time, Congress,
in legislating fuel-consumption standards for American
cars, committed itself to a radically different indfistrial
structure. You downsized the American car to save gas,
· and you wound up downsizing not only the U.S. auto
industry, itself but a substantial part of the industrial base
that supported it. You saved gasoline. And you destroyed
blue-collar jobs.
The U.S. had already had some expe-
rience with what the downsizing of
U.S. energy consumption could do to
the economy. A reduction in the con-
sumption of energy followed the first
price shocks of 1973-74. In a decade, 92
nuclear reactors were proposed and
canceled, 13 others abandoned after
the expenditure of $5.5 billion~ nearly
1,800 oil tankers--roughly 90 million
tons---sent to the scrap heap~ 23 o:!
.2c refineries in the U.S. shut down in
1981 alone. Some I00,000 gasoline
stations permanently closed down.
'~-~ Even the long-term growth of the oil
industry finally came to an end.
"We're different from most business-
-~t es," Exxon Chairman Clifford Garvin
concedes. "The demand for our prod-
- 5 uct continues to decrease, and we en-
courage that."
Downsizing cannot be done with
r-0 out pain. Lots of pain. Thought of in
st this sense, the current industrial de-
pression has virtually nothing to do
with Reaganomiesi Vo!ekemomies or Cartemornics. Nor
will it yield readily to politicians' simplistic cures. The
simple iact is: A given standard of living no longer requires
the same amonnt of iron and steel, labor, energy, rubber or
glass it once did. So, lots of people get hurt.
Consider what happened with autos. Over the 1977-82
model years, Ford sloughed off over 1.000 pounds of var-
ious materials, reducing its average car weight from 3,760
to 2,70-1 pounds in five years (see table, p. 165). By 1985
when the fi:derally mandated 27.5 miles-per-gallon stan-
dard has to be met, Ford expects to shed another 170
of the world i~ee pi%', xc::',;!n relatively prosperous
though its mare indusw; ',;me a.~,~o moved away? .
To talk of dcp, cssmn
the taco of such confu~ing t,'~dcnce is to misunderstand
what is really happening. Thc U.S., indeed the entire
' indht, uial world, i~ pmhmndlv changing the way it uses
men.and materiala, capital and manufacturing processes.
We are und,:rb.:mg wha~ economists call a structural
change, touched :'it [.y a ~putt in ener~ pr :es but stem
ming from even mc, re t'un, lan~i:;tl
Take the down'.:ging ut
;i
pounds. GM is already ball'way through a program to cut
vekide weight in half by 1995. Says Ford's manager of
supply clevelopmcnt and planning, Mary Anne V~heeler:
"We're not just substituting materials and downsi~ing
cars. We're also using all the materials more efficiently.
The 1979 Mustang, for example, was larger than the 1978
Mustang it replaced, yet it was 200 pounds lighter." Heat-
lng and cooling systems are smaller, tires are smaller and
last longer, and so do antifreeze, engine oil, batteries and
lubricating oil. "Everything we were doing," says Alex
Malt, head of GM's Technical Staffs Group, "had the effect
of using less of the earth's natural resources."
To compound the problem, the Japanese and other for-
eign makers steadily increased their share of the
auto marketmfrom 18% to nearly 30% in four years, while
the U.S. makers themselves began stepping up their use
of lower-cost imported components. No wonder the gloom
is widespread. Every imported car that's sold, every com-
ponent that's imported, every gain in the efficiency of
materials use comes out of the hide of Detroit's suppliers,
the steel industry most of all.
Autos are only theflegirming. A similar sort of downsiz-
ing has begun in ho:.:~ing and its satellite industries. Con-
sumers have been forced to downsize their expectations in
housing just as they had earlier downsized their expecta-
tions in autos. Housing starts have dropped to around 1
million, and houses are beginning to get smaller. "We have
a structural change in the capital markets," says General
Electric's chief .economist, Waiter loelson, 'ta shift from
Iow interest to high, which is forever going to skew th~ flow
of capital away from housing." Meaning: smaller new
honses, fewer new houses, a considerably reduced housing
industry..
As housing goes, so goes not only the forest products
industrt but als0 a whole range 0t building materials-.
fi:om cement to glass to insulation and, perhaps most
critically of all, to copper. With the copper industry's .
number one market in trouble, and its number two rfi'arket,
telecommunications, threatened by technological develop-
merits llke fiber optics and satellite communications, the
prospects for U.S. producers look grim, especially when
productionlevels abroad are dictated less by the demands of
the market than by the needs of government-owned foreign
producers to sustain employment and generate foreign
exchange. Half of the U.S. copper mining industry has shut
downj of that, half will be lucky to go back into production.
Steel is perhaps the most glaring casualty. "There is no
reason in God's wide world," says GE's loelson, "that just
because we needed so-and-so-much steel in the Fifties,
we're going to need that much in 1990." Says Hans Lands-
berg, a resource expert with Washington's Resources for
the Future think tank, "My metals friends say, 'Where will
the world be without iron and steel? Everything rests on it
like an inverted pyramid.' That's a childish notion. All the
steel industry can hope to do is reduce in size, become
more efficient and more competitive." '
ks recently as 1976, the U.S. steel industry shipped
A"A nearly a quarter of its total output'to the auto industry.
By 1981 the figure was 1S%--15% of a much reduced
output. And the prospects are not encouraging. Even ff Ford
should match its 2.9 m~llion-ear 1978 output next year~
Ford's steel needs would be at least 30% less than they were
in 1978, This at a time when some o[ steel's'other basic
markets are in trouble--containers, {or example, where for
the first time last year aluminum'captured more than 50%
of the market--and when ~'oreign competition is, if any-
· Where ill all the jobs come fi'om?
People talk as if manuhcturing had always been the Until World War I, manufacturing, agriculture and the
principal source o~ U.S. jobs. Except for very brief services were pretty much co-equal. When workers
periods, that has not been true any time in this century, began to move away from the farms in the Twenths,
· ~":~"i': ~' '?:." . ' '
. ;.-. i'. ' ,~?'Enipl " "'~
~ oyment.. '.. '" ' ~. ..... . ,-.,~"'." ·
?.':[)' '('.".!'".'.~Numbee o~ people empl°ye~'[u agdcuhmal ' ' .. ; .2 ....:.? [.,f,.j
?' ;manufactm'ing and sez~i~ lobs (ia millionsl '
1900 1910 1920 1930 1940 '" 1950
thing, more intense than ever.
There are two basic ways of de~ling
with these problems of industrial
change. There is the lapanese way.
Over the past decade or so, the Japa-
nese have been prepared to let the
basic industries in which they are los-
ing competitiveness gradually run
down, shifting ~heir resources into
new industries capable of generating
higher real income for their people.
They have already let their shipbuild-
Ing ~.nd textile industries run down. They seem prepared to
accept the eventual dispersal of their consumer electron-
ics, steel, aluminum, petrochemicals and even auto indus-
tries to places l~e Korea, Taiwan and Hong Kong. They
~re concentrating instead on dominating indusmes that
have greater long-term promise--high-technology indus-
roes like semiconductors, computers, telecommunica-
tions and fiber optics, areas where the U.S. has as com-
m~nding a lead as it once had in autos or steel.
In direct con~rast to the Japanese, there is the path the
British followed prior to Margare~ Thatcher. For 30 years
Great Britain attempted to preserve most of its dying
industries~shipbuilding, autos, steel--through protec-
tionism and subsidies. The result? The progressive stagna-
tion and impoverishment of Britain's people and its econo-
my. The Japanese way surely has more to offer. Yet it is
precisely the British model 'U.S. liberals hope to adopt.
Reindustriali~tion, taken literally, is a nasty joke.
if not in the steel mills and auto plants and housing tracts,
'where are the needed millions of jobs to be found for the
unemployed and for the nation's growing labor force? The
the biggest and most vital source of new jobs was not
manufacturing, but the services. And, as the chart
below makes clear, that hasn't changed.
-'.~.:~ . ~,,-~..~ ~ . ?L ~' .-.~ ~'~'"e
1960 1970 1980
'There is no reason in
God's wide world," says
GE's chief econOmist, "that
just because we needed so-
and-so-much steel in the
Fifties, we're gofng to need
that much in 1990."
answer is easy, but the means of
achieving it are neither easy nor very
pleasant.
After all, such changes h..ave oc-
curred before. At the outbreak of
World War 1, one-third of all em-
ployed Americans worked at farming.
As farming became mechanized, mil-
lions of workers poured off the farm
and rote industry,, where they built
the cars and refrigerators and other
new consumer goods that have done
so much to make life easier and better for all but the
wealthiest part o{ thc population. And food? Today little
more than 3 million farmers grow more food than 12
million did seven decades ago.
A similar change occurred in the railroad industry a few
decades later. U.S. railroads came out of World War II with
1.4 million workers~ today they haul nearly 25% more
freight with only 436,000 workers. Did the unemployed rail
workers starve to death? Not at all. They or their wives and
children found work in other industries. The U.S. learned to
grow more and ship more with fewer workers. Less labor
consumed in producing necessities meant more for luxu-
ries, many of which came to be regarded as necessities--
ears, indoor plumbing, suburban housing, education.
It is precisely through the shrinking of old industries---
learning to make more with less--that new industries
become possible and with them a broadening of the hori-
zons of life.for most people. The decline of old industries is
sad. But it is not a tragedy.
~,.W~ hat are the new industries.: They are already being
~'~born. The $114 billion eleetromcs industry, for one, is
gradually coming to play the core role in the U.S. and world
economy that autos.played in the past. It is a dazzlingly
diverse technology encompassing everything from televi-
sion sets and microwave ovens to eiectronic computers and
missile-control systems. Electronics is rapidly resl-,aping
the world's industries in ways that turn tradition upon its
head. In the process it is mimmizing most of the elements
that have always shaped industry in the past--labor, mate-
rials, manufacture. Lf the old tool industries were an exten-
sion of the human hand and back, the new ones are an
extension of the human brain and nervous system. The
basic thrust of the technology is immaterial, and its produc-
tivity potential is enormous. After all, decision making~
the conversion of infgrmation ifito action~is vroba~blylhe
ofily really 13roauctive activity there is.
It is a Curious tmng. In the early days of industrialization
there was a preoccupation with giantism, and in the Soviet
Union there still is--the biggest this and the biggest that.
But the postindustrial age, by contrast, seems bent on
scaling down. Some three-quarters of a century ago, Henry
Adams wrote about the Virgin and the Dynamo--the
unity of religion giving way to the multiplicity of technol-
ogy. And now the Dlmamo gives way to the implosive
force of the Chip-but as.yet no Henry Adams has poeti-
cized this cataclysmic event.
No more, the bigger the better. Now it is the smaller the
better. ENIAC, the first really large electronic computer,
was devised 35 years ago. ENIAC was the size of a room,
with 18,000 constantly overheating vacuum tubes, and
cost $3 million. A comparable machine today would occu-
py a space little larger than a typewriter and cost only
$300. That has been the pattern of the electronics industry
ever since~to downsize, to reduce the use of materials,
labor, capital, manufacturing to the barest minimum. And
~'JL [ OI~£S, NOVF. MB£R 22, 1982
?he pric®$ of prosperity
The motor powering much of the postwar economic boom was the
decline in real price of many of the U.S.' most vital commodities. Alter
th~ 1973 oil shock, the trend began to reverse, and the motor stalled,
{All prices below in 1972 constant dollars.)
80 81 ; ' 1950 SS 60 65 70 75 SO 81
Interest' Three*month
rates .~c~t Trc~urT bitb
s
1950 55 60 ~ 70 80 81
cenu per r~lon ga~oUne (Lax includedJ
' 1~50 55 ~0 ~5'70 75 80 81 1950 55 ~0 ~5 70 75
Steel ^v,~, annual finished
cent& p~r Imond steel composite price
~:. :~'
80 81
at thc same time to reduce the price.
Thc vacuum tube gave way to the
transistor, a hun~lred times smal~er~ '
the transistor was absorbed by the
integrated circuit, which itself was'
transformed by the microprocessor.
The pattem was a classic of capitalist '
development. The cost went down,
down, down, and the market went up,
up, up (see dart, p. 161). Virtuall~r ev-
ery major electronic consumer prod-
uct has repeated the pattern: comput-
ers. calculators, tape recorders, radios,
watches, television sets, you name it.
"By making things smaller, essen-
flail}, we don't have any negative
tradcoffs," says Gordon Moore, chair-
man of intel, the U.S.' pioneering mi-
croprocessing outfit. "Everything is
improved simultaneously~powcr
consumption, performance, produc-
tion costs. This is an unparalleled en-
gineering situation. There is always a
threshold somewhere, below which
you can't go, but I can see another
decade of progress anyway."
~ he result has been to convert elec-
- ,~ tronics from a hea'q' industry into
a light one--s process that tends to
repeat itself in whatever industry
electronics touches. In the Fifties, for
instance, at Western Electric's Allen-
town,, Penna. plant, rows of white-
smocked women assembled vacuum
tubes by hand. backed up by metal-
working shops and gas fires for work-
lng gla~s. All this has been phased our.
The tubes were replaced by semicon-
ductors~silicon transistors, that
and by integrated circuits. Printed
circuits, have replaced wired ones,
and high-speed automatic equipment
bonds the circuits under a single op-
erator. It's a pattern that has bccn
repeated everywhere.
Take the 1977 Apple Il computer.
According to Frederick L. Zicbcr, a
semiconductor specialist with Cuper-
tino, Calif.'s Dataquest research firm,
that 1977 Apple had 105 semiconduc-
tor parts with a value of $693. Last
year those same parts cost only $97
and, when the Super Apple II comes
on thc market, those 105 parts will
probably bc reduced to 10. "Thff sav-
ings showed up in the prices," Zieber
'says. "The original machine sold for
$2,300, vs. $1,700 today, and if you
went hack to thc original $693, you
could build a machine that had 8
times the memory and 40 times the
computing power."
The old Friden calculator had hun-
dreds of parts and sold for maybe
$800. Its electronic version has 50
parts and costs $10. One microproces-
s,:r replaced 350 parts in a Singer sew-
FORBES. NOVEMBER 22. 19sl
*mm
ing machine, and a few dozen micro-
chips can replace 80 pounds of switch-
es and wiring in a vending, machine.
What made all the difference was
the microprocessor--a device that
crowded the central element of a com-
puter; its arithmetic and logic cir-
cuits, onto the same chip. Until Intel
developed it in 1971, electronic com-
puting had relatively limited applica-
tions. You don't use a bulldozer to
turn over a rose bed, or a stamping
"By making things small-
er," says Intel's Chairman
Gordon Moore, "every-
thing improves simulta-
neously-performance,
power consumption, pro-
duction costs."
machine to turn out cookies, and you wouldn't use an IBM
360 to index your recipes. The big computers are expensive
and most efficient when handling large volumes of materi-
al. But like the fractional horsepower motor, the micro-
processor opened up an enormous and almost unlimited
market in small applications. "A few years ago," says
Regis McKerma, head of the Palo Alto public relations firm
that represents an inordinately large number of Silicon
Valley's electronic entrepreneurs, "everything had a frac-
tional horsepower motor to run it. Today everything has
an electronic brain. It's a base industry, the semiconductor
industry. It's not really a product~ it's process oriented, like
oil, and other products and industries wfll live off it for
decades."
"The hardware continues to go down in price," says
Intel's Gordon Moore. "In some instances, 100,000-fold in
15 or 20 years. And that means that wherever electronics
is appropriate, the electronic solution is going to be the
one that eventually dominates."
"The exciting thing that's going on," says TRW Chair-
man Ruben Mettler, "is the use of the new technology in
the older and more mature industries. What you can do for
a combine, a tractor, a truck or a car with a little electron-
ics is pretty dramatic. It enhances quality, it er~hances
productivity, it reduces costs and it permits more sophisti-
cated designs." But it also saves on material and requires
feWer workers.
What began as a trickle has become a flood. Industry
a~ter .industry is beginning to turn to microelectronics.
And not just in manufacturing. Microelectronics is begin-
ning to handle sophisticated ixfformation of all sorts--the
sort now handled by trained professionals-in medical
diagnosis, architectural design, oil-well analysis, teaching,
accounting, stock analysis, journalism. The increments
are often small, but the cumulative impact promises to be
enormous, conceivably as enormous in driving down the
costs of things as energy proved to be in driving them up.
Looked at in this way, the very advance of electronics, of
electronic data processing, dooms the older, labor- and
capital-intensive heavy industries. They are still needed
but are no longer center stage. Here the analogy with the old
agriculture holds true: The knowledge industries are re-
placing the blue-collar industries in the advanced societies
as inexorably as the service and blue-collar industries once
supplanted agriculture as the principal activity oi mankind.
The ramLfications are almost endless. Electronic order
processing has already begun to transform the whole-
sale distribution business. Aico Standard, for instance, has
built a $2 billion business in paper, health services and
auto parts by computerizing its ordering, warehousing and
delivery operations--substituting Iow-cost electronics for
high-cost labor. As a result, Alco tums its inventory 7.5
times a year, instead of 6, and cuts its inventory costs
accordingly.
When Foremost-McKesson computerized its drug distri-
bution, it cut its warehouse personnel
flora la0 to 12 and doubled its busi-
ness. For the drug distribution indus-
try as a whole, computerization
helped cut operating cost§' from
11.4% of sales to 8.3%. "LabOr's ini-
tial attitude is: A robot is going to
take a person's job," says Alco Chair-
man Ray Mundt. "But that robot is
necessary to keep that company com-
petitive in the marketplace, and if it's
not competitive, there aren't going to
be any jobs at all. If you can't stay competitive, forget it,
you aren't going to be around."
eneral Electric expects factory automation to be one of
its biggest growth businesses. GE is presently spend-
ing $38 million to automate its own dishwasher plant in'
Louisville as a sort of laboratory to discover what it can do
for itself and for others. GE figures it could conceivably
replace half of its 37,000 assembly workers with robots. At
Erie, Perma., it's spending $300 million to expand its
locomotive capacity 50%~ an automated operation will
'turn out a diesel or electric motor frame a day with no
operator whatsoever, a procedure that used to take 68
machine operators 16 days.
The Bell System used to account for 4% to 5% of the
U.S.' copper consumption. But AT&T is turning from
copper to light-guide cable systems, in which lasers blink
CauSe and effect
TO meet fuel efficiency standards, the auto industry
was forced to reduce both the size and the weight of
its vehicles. The effect on Detroit's supplier.s, as the
table below detailing Fo~d's program sug8ests, was
well nigh catastrophic. ¢3ve~ a ii,e-year period, Ferd
cut the steel content of its average car by 31%,
rubber by 28%, zinc die castings bt' 71%.
Pounds {dr',' welght~-----7-'
btatetiai 1977 198~ 198S
Plastics 165. ' 22a 225
Aluminum
High strength steel 105 252 270
Cold rolled steel 820 S 10 490
Hot rolled steel 1,419 86~, 760
Cast iron 620 a52 315
Glass 93 74 .67
Rubber (synthetic, natural) 180 129 120
Sound deadeners 85 46
Copper and b~ass 35 32 25
Lead ' 29 28 25
Zinc die castingn 34 10 10
Other 65 50 49
Total weight 3,760 2,704 2,533
FORBES, NOVEMBER 22, 1982 165
millions of times a second over a glass fiber. Light guide
will go into a new transoceanic cable, which will have
greater capacity than the five other cables combined, and it
is also going into the 776-mile communications network
AT&T is building between Cambridge, Mass. and Rich-
mond, Va. In a different time, such a system alone would
have used 2.5 to 3 million pounds of copper, equal to about
1% of the U.S.' 1981 copper consumption. But the light-
guide cable is lower cost, higher quality and larger volume.
In the circumstances, it's not inconceivable that Western
Electric could meet its copper needs for the rest of the
century by reclaiming the copper it has in place. Good-bye,
marginal, high-cost copper mines.
The implication for the traditional materials is awe-
some. Steel, copper, lead and zinc will lose more ahd more
of their importance, and lighter-weight, more sophisti-
cated and exotic materials will come to the fore. "The
knowledge industry," says RFF's Hans Landsberg, J'is the
enemy of the traditional materials industry."
When the U.S. emerges from the present recession, 'it
may discover that industry has made enormous gains in
productivity but that unemployment has not necessarily
been reduced. To take '2:e easiest example: Nobody expects
Detroit to rehire more than a portion of the 400,000 or so
autoworkers that have been laid off. The Bureau of Labor
Statistics expects auto employment will recover to no
more than 900,000, down [rom 1978's I million. And, as
factory automation proceeds in the auto industry, another
200,000 could lose their jobs over the next several years.
"In the last three or four recessions," says Harvey Ha-
mci, an economist with the BLS, "the recovery has never
brought unemployment back down to the level where it
was prior to the recession. Unemployment has settled
down at the higher rate every time."
fftaCongressional Budget Office study estimates micro-
electronic technology could cost the U.S. 3 million
jobs by the end of the decade--I 5% of the manufacturing
work force--and 7 million by the year 2000. Dataquest's
Fred Zieber doubts whet_her many of these job losses can
be avoided. "You can say, 'Don't use electronics because
electronics.is going to cost jobs.' But you can't hold them
back anymore than you can hold back Pac-Man. Somebody
in some other country will use it, and those jobs are going
to be lost anyway."
The cost savings--and the competitive impact--can be
so extraordinary that companies and countries have no
choice but to adopt the technology if they want to survive.
The Japanese success in the microelectronics 'market was
based in part on their ability to produce, a lower~cost and
higher-quality product using automatic, equipment than
the U.S. producers could turn out by hand. And,the U.S.
producers retaliated by turning to automation themselves.
"A country that wants to participate in the world econo-
my can't keep the teclmology out," Gordon Moore says.
"The alternative to not adopting it does not exist, because
you'll lose the jobs completely, you'll not be competitive
Baby boom, baby bust
The Baby Boom of the Fifties powered much o[ the
economic growth o[ the Sixties and Seventies. But the
Baby Bust o[ the Sixties will mean [ewer young people
18 to 24 entering the work force, and that should help
considerably :a ease the U.S.' employment problems in
the Eighties.
· U.S. Population
~.:..;,,~,,:~,~,..:~ ~..,
E~' ~, ~ ~'~
· :..
1980
millions
~'.... · :;>~.., :') . ,'
8 ..' '
C.'.'. .' '. ':;,~.:':'il -- -
~': .:..'..;.,: 7'~'.~
2000 '
in the world market." So reindustrial-
izationtthe traditional revival of tra-
ditional industry--makes as much
sense as fighting unemployment by
throwing out machinery and building
roads with human labor·
Is the U.S., indeed the world, then
doomed to suffering massive unem-
ployment? Not necessarilytnot in
the long run. Look what has becn hap-
"The lower-technology
tasks are going to the devel-
oping world," says TRW's
Merrier. "So the U.S. must
move to the higher-value-
added segments of the
world economy."
loom as a means of protecting higher-
skilled iobs at home.
"As a practical matter," says
TRW's Rnben Mettlcr, "the commod-
ity, lower-technology, morc-labbr-in-
tensivc tasks :~rc going increasingly to
the developing and middle-developing
countries. The $20 an hour they pay
in Dcuoit can't dompcte with the $2
or $3 in Mexico or Taiwan. We are
pening in the US in recent years _ .~.~ . , ~, =.~ ........ ~ part of the world economy. So it's
· .~',,'~;.fi':' :~:?'.~ -.~ ~: ~: · ~ ~, ~ ~_. ~,~ ~ , ~.
[Total employment ~n the count~ has ~"] healthy for the U.S. to move to the
[risen from 75 million in 1970 to 99..7 million in 1982. But of hi~er-valuc-added segment of the world economy."
[the 25 million new jobs, only 2.3 million were in manufac- But isn't half thc U S. semiconductor indust~ s approxi-
]turing. Virtually all thc new jobs have come in thc se~ice matcly 500,000-man crop )lu 'merit out~idc~ the U.. p yS -- artl ·
]industries: utilities and transportation, wholesale ~d re- because of cost, partly because thc best process en~neers in
~tail trade, producer and personal services and govemment, the world are in Taiwan and Singapore? Yes, but there's
Union spokesmen like to sneer that the new jobs involve
serving hamburgers in fast-food restaurants. They forget
electronics, data processing, the law and such fancy new
opportunities as environmentalism, ~firmative action, as-
tronautics and hazardous-waste control.
According to thc BLS, employment in the computer and
peripheral' industries should grow twice as fast as the
national average over the next decade, including such jobs
as computer-repair technicians, computer-systems ana-
lysts, computer operators, office-machine and cash-regis-
ter service, computer programmers.
But if bank tellers are to become computer operators and
machine operators become computer programmers, there's
got to be a massive upgrading of skills involved. You don't
have to have a college degree to be a programmer. But you do
have to have some basic skills. Old dogs--and most people
get to be old dogs by the time they're 35--don't want to
learn new tricks, and whether they're salaried professionals
or assembly-line workers, they don't want to move else-
where to learn them. But though Luddite visions of unem-
ployed millions cannot be entirely dismissed, there is no
reason to think that a nation that has coped with fair
success with the problems of the elderly and thc disadvan-
taged, the ill-educated and the unhealthy cannot finds ways
and means to make even this problem manageable. -
Luckily, the U.S.' changing demographics will help.
-:Along with the downsizing of U.S. industry, there has also
been a downsizing of the U.S. population growth rate. As
the Eighties progress, the U.S. will begin to feel the impact
of the lower birthrates of the Sixties. There may not be the
population stimulus to economic growth there was in the
Sixties, but there shouldn't be so much difficulty in gener-
ating new jobs either tsee c&wt~.
The new entrants to the work force, as management
philosopher Peter Drucker points out, are likely to be
far better educated than those who are leaving it. This
means that a labor shortage could conceivably develop in
the traditional manufacturing and service occupations,
and a labor surplus in the more capital-intensive, high-
skill and technology jobs. Blue-collar industrial and ser-
vice jobs would go begging. Which may justify the trans-
fer of labor-intensive manufacturing to the developing
countries-as is happening already. "Thc standard of
living of the developed world," Drucker says, "can be
maintained only if it succeeds in mobilizing the labor
resources of the developing world." Foreign competition
nothingirrevocable about the move. Explains Ralph Anavy,
vice president of Gnostic Concepts, a Menlo Park, Calif.
research firm, "Once you have wiped out almost all direct
labor and automated the process, it doesn't make sense to
keep manufacturing in Singapore. In semiconductor assem-
bly, the labor-intensive job of bonding the dies t0 the lead
frames used to be done abroad. Now it is done automatical-
ly in the U.S." In such circumstances; automation could
conceivably, enable the U.S. to recover such industries as
textiles, long since lost overseas.
oseph Schumpeter, thc great Austrian economist who
for three generations was largely echpsed by Keynes,
wrote of the "gales of creative destruction" in economic
life. These sweep away the obsolete and the inefficient and
make place for the new. These gales have made a waste-
land of large parts of the U.S. Middle West. But they are
blowing in whole new indusu'ies. Thc dual nature---cre-
ativ. e and destructive---of thc changes can be seen clearly
in a city like Akron [seep. 17¢0.
A large part of the rising affluence of the U.S. in the post-
World War II years stemmed lmm the fact that the real
prices of many of thc U.S.' most vital commodities de-
clined, and often declined sharply--from gasoline to elec-
tric power to automobiles. They did so for a variety ut
reasons--technological change, the abundance of raw ma-
terials, multiplying economies of scale--but by the early
Seventies most of those forces.had begun to run out. The
next unit of almost everything cost more than the last, and
when the price of oil lurched out of control in 1973, the
game was over. Living sr~andards began to decline.
But those dynamics of'failing prices are still valid, and
these days it is microelectronics that offers the best hope of
getting those costs trending downward again~not from
deflation, but from real productivity gains. The microproc-
essor has an insidious capacity for pervading every aspect of
thc economy~for filling it, reforming it and reshaping it to
its image. And it's a dynamic that c~rporations fi'om GM to
Western Electric arc working to get moving .again.
"The cost of a lot of things isn't going up," says Western
Electric's Vice President William B. Marx. "It's coming
down--tape recorders, television sets, long-distance tele-
phone service." "In the electronics industry," says Ralph
Anavy, "the cost of production typically goes down be-
tween 20% and 30%/or each doubhng of volume·"
Tell that to thc unemployed auto: steel or machine-shop
workers..' You can't. Thcir futures are not bright. For them,
· thus plays its part in the dynamics of changing industry, adapting to thc new world ~sn't going to be easy. But for the
To assure markets for our higher-skilled output, we're~..__c, ountry at large, for thc world at large and for the children
~g to-~ecd to cultivate t'h-~ la~or-int6nsive ecOnomies~_.o~f the present generation, there is afis~lutcly no reason to
of tfic dcv,Auvh~g world. ~nus, iot~ exports ultimately despair fur thc economic :utm'c. i~
~'~ ~) k~ :ORBES, NOVEMBER 22, 1982
167
CITY of MOUND
5341 MAYWOOD ROAD
MOUND, MINNESOTA 55364
(612) 472-1155
One of. the jpbs of the Ci. ty Manager is to constantly evaluate City services
to see if they can be improved.
In 1982, the City adopted a newZoning Ordinance and hired a new Building
Inspector.
As one of the holders of a 1982 Building. Permit, I would like to ask you
to provide me with your thoughts on how all this "newness" seems to be
working.~
Enclosed'is .a short questiona[Fe that shouldn't take more than a couple of
minutes to fill out and the information will really be helpful to me.
Please rest assured that all the information will be confidential.
Thanks for your interest in the Ci'ty of Mound.
Sincere]y,
Jon Elam
City Manager
JE:fc
enc.
e
Se
February 1983
CITY OF MOUND
BUILDING/PLANNING SURVEY
Was this your 'first time applying for a Building Permit
from the City of Mound?
Did you meet with the City Building/Planning Staff on
your project before formally submitting'yourplan/reqUest?
Di~ you have to come back' for addi'tional meetings?
How many?
Was a meeting(s) like 'that helpful or useful?
YES F'-"I NO'
['-'-'l YES r'-'-l. No
yES I----1 .0.
YES l'--m] NO
How would you:-rate the service'or.assistance you received from the City Staff on ·
your appli6ati6n?
· Poor 'Fair Good Excellent
Do you feel the City processed your request:
A. Effectively?
B. Efflciently
' How' long did it take?
["--1 YES
['---1 YES
Did. your request require:
A. A zoning ordinance variance?
B. A c°nd. itional use permit?
Did your'request require review by the City Planning
Commission?
Did your request require City Council approval?
r---'] YES
~ YES
~ YES
~ YES
~ NO
How would 'you rate the C'ity Staff's 'handling of your request befor'e tl~e City
Plannlng Commission?
Poor Fa i r Good Exce 1 1 en t
How would you rate the City Staffms handling of your request before the City
Council?
Poor Fair Good Excel lent
How would you rate the following from the City of Mound
11..
A. Building Staff?
B. Planning Staff?
C. Planning Commission?
D. City Council?
14.
rI---l'Poor
]----J Poor
lI--J Poor
['--J Poor
~ Fair
~ Fair
.~_i.I[ Fair
~ Fair
"""] Good
Do you feel the City's Planning process is adequate?
Were you ~dAquately informed of the City's zoning
laws and rules?
A. Did.they seem reasonable?
Do you feel the City is Planning adequately for the
future of the City?
~ Good
~ Good
r---! 'Good
Page 2
--"1 Excel lent
)-~ Exce 1 1 en t
~ Excel lent
F----I ExcA1 lentI
F---I YES F--1 .o
~ 'YES ~ NO.
F--! YEs NO
YES
DON'T KNOW
C'ould you summarize, in a few short sentences, your thoughts on the Planning/Building
Permit procesls in the City of Mound and share your thoughts on how we might improve
upon it?
Signature (if you wiSh') ·
15, Would you llke to meet and discuss this further?
[---'1 YES
~ NO
FIRST NATIONAL-SOO LINE CONCOURSE 507 MARQUETTE AVE.
EHLERS AND ASSOCIATES, INC.
FINANCIAL SPECIALISTS
MINNEAPOLIS. MINNESOTA 55402 339-8291 (AREA CODE 612)
File: Financial Specialists: Ehlers and Associates, Inc.
Please distribute to governing body members
March 1, 1983
Newsletter
The bond market, generally, and the tax-exempt market in particular, suffers from great uncertainty
about the huge federal debt. As pointed out in a January "60-Minutes" program, we are justly con-
cerned about a $1.2 trillion federal debt, but a $7 or 8 trillion "actuarial" debt that will arise
from various entitlements is of even greater concern. Former Treasury Secretary Simon said we need
some one-term congressmen to enact some painful legislation without fear of not being reelected
(which assumes that the candidate does not disclose his or her true intent when running for the first
term).
Tax-exempt bond yields are 90% of taxable yields because of an oversupply. Some assure us that the
narrow spread is due, rather, to reduced federal tax rates especially on "unearned income". But this
ignores a fundamental economic principle that the price of any commodity (bonds) falls (interest
rates rise) to the level necessary to dispose of, not the easiest, most affordable sale (to persons
in the highest tax bracket), but to the last, least affordable sale to persons in the lowest tax
bracket. Thus, if some bonds must be sold to taxpayers in, say, the 25% bracket the price of whole
supply falls to the level necessary to sell those bonds to those taxpayers. If, finally, some~
must be sold to untaxed entities the spread will become zero, not just as to those bonds, but for the
entire supply.
By blessing tax-exempt financing for a whole host of essentially private purposes, the states and
their subdivisions have seriously diluted their own advantage and have increased their own borrowing
costs. While those who represent businesses and underwriting interests'strenuously defend their
"right" to tax-exempt financing, the advantage has largely disappeared for them too. Now watch for a
Treasury move to eliminate tax-exempt borrowings altogether.
Attention is now focused on short-term financing by school districts, but other governments may be
faced with such borrowings if the states find themselves unable to make good on their local govern-
ment-aid promises. Tax and aid anticipation borrowing is an important tool to cover short-term fi-
nancial problems, but long-term solutions must be sought, either in legislation to permit increased
local levies, or to issue long-term funding bonds. Care must be exercised to protect short-term fi-
nancing plans with well thought out, productive, investment plans.
It was so nice to see so many of you at the conventions. Spring is near!
Very truly yours,
oert L. Eh]
SUMMARY OF AREA BOND SALES
Bond
Net Buyer
Municipality Date Type of Bonds Amount Maturity Rate Index Ratin9
IOWA
Central Decatur CSD (Leon) 1/19/83 School Bonds, Series B 2,9004 1984-2002 9.50% 9.37% BBB+
(S~P)
MINNESOTA
ISD No. 625 (St. Paul) 12/07/82
Eagan 12/08/83
Eagan 10/08/82
Kanabec County 12/08/82
Stearns County 12/09/82
ISD No. 241 (Albert Lea) 12/14/82
Moorhead 12/20/82
ISD No. 709 (St. Louis 1/11/83
County)
ISD No. 829 (Waseca) 1/12/83
Eden Valley 1/12/83
1/13/83
1/17/83
1/18/83
1/19/83
1/20/83
1/24/83
1/24/83
1/24/83
1/24/83
1/25/83
1/25/83
lSD No. 833 (South
Washington County)
Tower-Soudan ISD No. 708
ISD No. 535 (Rochester)
ISD No. 281 (Robbinsdale)
No. 280 (Richfield)
No. 735 (Winthrop)
No. 648 (Danube)
ISD No. 465 {Litchfield)
ISD No. 881 {Maple Lake)
ISD No. i {Minneapolis)
ISD No. 77 {Mankato)
ISD No. 140 (Taylors Falls) 1/26/83
ISD No. 140 (Taylors Falls) 1/26/83
ISD No. 482 (Little Falls) 1/31/83
Olmsted County 2/01/83
St. Paul 2/01/83
St. Paul 2/01/83
St. Paul 2/01/83
St. Paul 2/01/83
Sleepy Eye 2/01/83
ISD No. 492 (Austin) 2/02/83
ISD No. 276 (Minnetonka 2/03/83
Public Schools
G.O. Tax Anticipation Certificates 20,200M 1984 6.70% 10.23% MIG-1
G.O. City Hall Bonds 965M 1984-1997 8.92% 10.23% A
G.O. Improvement Bonds 2,4004 1984-1997 7.94% 10.23% A
G.O. Jail Building Bonds 590M 1984-1993 8.42% 10.23% Baa-1
Drainage Ditch Bonds 4204 1984-1994 8.28% 10.13% A
G.O. Tax Anticipation Certificates 3,3504 1984 6.75% 10.13% NR
Municipal Improvement Revenue Bonds, 7004 1984-1990 7.85% 10.05% NR
Series A
G.O. Tax Anticipation Certificates '6,800M 1984 5.87% 9.48% MIG-2
G.O. Tax Anticipation Certificates 1,430M 1984 5.87% g.48% NR
G.O. Bonds (Grant Anticipation & Sewer 8104 1984-1992 7.37% 9.48% Baa-1
Revenues)
G.O. Tax Anticipation Certificates 4,4004 1984 5.90% 9.48% NR
G.O. Tax Anticipation Certificates
Certificates of Indebtedness
Certificates of Indebtedness
G.O. Tax Anticipation Certificates
G.O. Tax Anticipation Certificates
G.O. Tax Anticipation Certificates
G.O. Tax Anticipation Certificates
G.O. Tax Anticipation Certificates
Certificates of Indebtedness
G.O. Tax Anticipation Certificates
G.O. School Aid Anticipation Certificates
G.O. Tax Anticipation Certificates
G.O. Tax Anticipation Certificates
G.O. Solid Waste Management Revenue Bonds
G.O. Tax Anticipation Certificates
G.O. Urban Renewal Bonds
G.O. Capital Improvement Bonds
G.O. Water Pollution Abatement Bonds
G.O. Hospital Revenue and Building Bonds
G.O. Tax Anticipation Certificates
G.O. Tax Anticipation Certificates
6204 1984 6.60% 9.37% NR
6,7004 1984 4.92% 9.37% MIG-1
11,0004 1984 4.96% 9.37% MIG-1
3,6004 1984 5.17% 9.37% MIG-1
545M 198~ 5.63% 9.48% NR
3804 1984 5.78% 9.48% NR
945M 1984 5.53% 9.48% NR
4504 1984 5.78% 9.48% NR
48,0004 1984 5.17% 9.48% MIG-1
2,275M 1984 5.30% 9.48% NR
1704 1983 5.89% 9.48% NR
235M 1984 6.19% g.48% NR
1,095M 1984 6.15% 9.66% NR
7504 1986-1990 6.68% 9.66% Aa-1
22,7004 1984 5.21% 9.66% MIG-1
505M 1984-1993 7.36% 9.66% Aa
5,3704 1984-1993 7.38% 9.66% Aa
6,0804 1984-2003 8.77% 9.66% Aa
725M 1984-2001 8.60% 9.66% A
2,660M 1984 5.29% 9.66% MIG-1
3,825M 1984 5.34% 9.66% MIG-1
NORTH DAKOTA
Wahpeton
12/08/82 Refunding Bonds
1,450M 1985-1999 9.06% 10.23% A-1
SOUTH DAKOTA
Vermillion
1/17/83 G.O. Watershed Utility Bonds
1,4504 1985-t998 8.16% g.37% A
WISCONSIN
Washington Heights
Sanitary District
st Allis
12/21/82 G.O. Bonds
2/01/83 G.O. Promissory Notes
1804 1984-1989 8.36% 10.05%
1,5004 1984-1992 7.75% 9.66%
NR
A-1