79-11-06 CITY OF MOUND
Mound, Minnesota
AGENDA
CM 79-394
CM 79-397
CM 79-392
CM 79-395
CM 79-396
CM 79-393
Mound City Council
November 6, 1979
City Hall
7:30 P.M.
1. Minutes
2. Public Hearings: Pg. 3029
A. On Sale Beer License Application - Brantys Restaurant Pg. 3027-3028
B. Vacation of a part of Kildare Road Pg. 3026
3. Variance Request - Lots I0 & ]1, Block 14, Seton Pg. 30]9-3025
4. ]978 Audit Pg. 3010-3018
5. Street Construction
6. Comments and Suggestions by Citizens Present (2 Minute Limit)
7. 911 Plan for Hennepin County Pg. 3007-3009
'8. Swenson Agenda Request Pg. 3006
9. Industrial Revenue Bond Criteria Pg. 3002-3005
10. Transfer of Funds
1]. Payment of Bills
12. Information Memorandums/Misc. Pg. 2953-300]
]3. Committee Reports
Pg. 3030
CITY OF HOUND
Mound, Minnesota
11'6-79
November 6, ]979
INFORMATION MEMORANDUM NO. 79-118
SUBJECT: Return of Escrow Account
Surfside has withdraw their program and asked a return of their
escrow account for the Conditional Use Permit.
The account is as follows:
Deposit
Less: Engineering Fees
Legal Fees
Administrative Fees
Total Charges
$2,000.00
221.40
3OO.OO
5O.OO
$571.40
Refund
$1,428.60
Council authorization is requested.
L~ohard L. Kopp
CITY of MOUND
5341 MAYWOOD ROAD
MOUND, MINNESOTA 55364
(612) 472-1155
McCOMBS-KNUTSON ASSOCIATES, INC.
CONSULTING ENGINEERS · LANO SURVEYORS · SITE PLANNERS
Reply To:
12800 Industrial Park Boulevard
Plymouth, Minnesota 55441
(612) 559-3700
November 6, 1979
Mr. Leonard Kopp
City Manager
City of Mound
5341 Maywood Road
Mound, MN 55364
Subject:
City of Mound
1979 Street Construction
Wall Request at 4667 Hampton Road
Dear Mr. Kopp:
We have looked at the property at 4667 Hampton Road.
The owners have requested a wall across their property on
Paisley Road. We feel this wall is not necessary to protect
any trees, etc. We can slope the property further back
without removing trees and leave a slope that can be readily
maintained as lawn.
We will have pictures of the property for the November
6 Council Meeting. .
Very truly yours,
McCOMBS-KNUTSON ASSOCIATES, INC.
Lyle Swanson, P.E.
LS:sj
#4213
Minneapolis - Hutchinson - Alexandria - Granite Falls
I TEROFF'ICE M E
TO:
FROM:
SUBJECT:
Leonard Kopp - City ~anager
Charles Johnson - Chief of Police
FBI National Academy
DATE Novembe, r 5 .19:7_9
Attached is a copy of the invitation I received from William H. Webster
to attend the FBI National Academy, 120th session, January 6 to
March 21, 1980. Also attached is a copy of the general instructions
I received from the FBI regarding this session.
Please be advised that the preliminary physical.examination and
registration requirements have already been completed. It is anticipated
I will be leaving the city on January 4, 1980 and wil'l be returning the
week after the 21st of March.
Respectfully,.
Charl es ~J~ohnson
Chief of Police
CJ:lao
CITY OF HOUND
Mound, Minnesota
-6-79
November 5, 1979
COUNCIL MEMORANDUM NO. 79-398
SUBJECT: Addendum to C.M. 79-394
Vacation of a part of Kildare Road
Attached is a copy of a report from the Public Works Director
relative to the request for the vacation of a part of Kildare
Road.
~, Leonard L. Kopp
CITY of MOUND
5341 MAYWOOD ROAD
MOUND, MINNESOTA 55364
(612) 472-1155
November 5, 1979
TO:
FROM:
SUBJECT:
Leonard Kopp
Public Works Director
Vacation of Part of Kildare Road
The Public Works Department recommends denial of this request for vacation.
This portion of Kildare Road ys?~iacktopped in the 1978 project The right-of-
Way is only 30' and we used 2fro of the right-of-way for road. I~ we vacate h' of
the road we would be 9lying up the curbin9 and part of the blacktop.
This vacation would also put us within 6' of the sewer main which would not give
us enough room to di9 for repairs if necessary.
The water shut off and sewer stub for this property is also within this area.
We would have to keep it as a utility easement~ and rather than do that this
department feels we should deny the vacation.
Re sp.~ctful ly ~
Robert Shanley
Public Works Director
CITY OF MOUND
Mound, Minnesota
-6-79
November 5, 1979
INFORMATION MEMORANDUM NO. 79-117
SUBJECT: Tonkawood Area - 1978 Street Assessment
An error was made in totaling the assessment amount on two properties in
the Tonkawood Area of the 1978 Street Assessment. The unit, frontage and
area figures are correct, but somehow the total is wrong. The grand total
adopted by the Council for this area is correct. These two errors in-
creased the total the County ran by $74.00 over the figure approved by the
Council.
The assessments & properties are as follows:
PID # Total Shown
Total Should Be Diff.
13-117-24 32 0020
13-117-24 31 0030
$2,551.41 $2,487.~1 $64.00
3,738.93 3,728.93 10.00
If there is no objection, these figures will be corrected with the County.
Le~onard L. Kopp
McCOMBS-KNUTSON ASSOCIATES, INC.
CONSULTING ENGINEERS [ LAND SURVEYORS,.[] SITE ~.A/ANNERS
· ' ep[ '
q. ,~" '~ ' ,~ 12800 Industrial Park Boulevard
i ' ~ . t~, JJT(¥mouth, Minnesota 55441
~ ,- / ~]~.] (612) 559-3700 .
November 1, 1979
Dear Mayor,
We have recently received the enclosed information
and thought it might be of interest to you.
Very truly yours,
McCOMBS-KNUTSON ASSOCIATES, INC.
William H. McCombs, P.E.
WHM:sj
Enclosure
Minneapolis - Hutchinson - Alexandria - Granite Falls
FROM :G. ,i. Fay ~~ PHONE: 6 987~
State Aid Enaineer '- ~ - ' '
SUBJECT: R~ S~T
As you know, rock salt for snow and ice control is in short supply
for the coming winter. Fortunately }~/DOT has adequate supplies
committed for their use under contract.
Mn/DOT is aware that many counties and cities do not have a source
of salt for the coming ~dnter. Therefore, the C~zaissioner of
Transportation has determined that part of }m/DOT's supply is surplus
and has declared that the surplus be made available to other polit-
ical sub-divisions under Minnesota Statute 161.41. The locati6n of
this surplus is at the Alter dock in La Crosse, Wisconsin.
Oities and counties may purchase this surplus at the price invoiced
by the contract vendor at the time of pickup. The price will be
approximately $23.00 per ton F. 0. B. loaded and weighed on your
trucks. Each participating city or county ~11 be responsible for
their own hauling arrangements and costs.
The procedure which pgst be followed to obtain this surplus salt is
as follows:
SteP 1. The city or county must call the Business Office of the
district headquarters of }~/DOT and ask for.a purchase
order number to obtain salt from the La Crosse stoclcpile.
The city or county must also state h~wmany tons of salt they
will be getting under that purchase order number.
Step 2. %~en the city or county picks up salt at the La Crosse stock-
pile they must'state that they are pickinD up salt for the
Minnesota Department of Transportation account for the
district ~ich issued the.purchase'order nmnbcr. For example,
if Wright County required salt~ the county would call the
District Business Office at Brainerd and obtain purchase order
n~:~ber 12345 for 120 tons. Wright County ~uld than inform
personnel at the stockpile, "I'm here to pick up salt for the
Minnesota Department of Transportation account at Brainerd.
My purchase order n~cnber is 12345 and I need 120 tons".
County Engineers'
Municipal Engineers
Page Two
October 17, 1979
Step 3. Mn/DOT will pay the contract vendor in the usual.manner and
bill the city or county,
Step
The city or county will send a draft payable to the Co~issioner
of Transportation to the District Busine.ss office which issued
the purchase order in step one. The draft must be clearly id-
entified as "Reimbursement for Rock Salt",
Questions concerning this process may be addressed to your District
State Aid Engineer or you may contact Mary Bates, Maintenance Engineer-
ing coordinator, at 612-296-6761.
cc:
R. P. Braun - 411
R, J, McDonald - 408F
F. G. Marshall - 413
W. Go Merritt/E.J. Heinen - 413
Jo Pinke - 408E
Ro Swanson - DOT Annex
District Engineers/Business Managers
District State Aid Engineers
M. G, Bates - 529 Jackson
Assistant District Engineers Maintenance
MINNETONKA CONSERVATION DIStrICT
L.M.C.D. MEETING SCHEDULE
November-December, 1979
Monday
11-19-79
Lake Use Committee
4:30 p.m., LMCD Office, Wayzata
Saturday
12- 1-79
Water Structures & Environment Committee
7:30 a.m., Park Bench, Spring Park
Saturday
Wednesday
12- 8-79
12-12-79
Executive Committee
7:30 a.m., Park Bench, Spring Park
Regular Meeting of the Board of Directors
8 p.m., Minnetonka Art Center (Cafeteria)
County Road 51, Orono
11-1-79
CLAYTON L. L£F£VERE
HERBERT P. LEFLER
CURTIS A, PEARSON
J. DENNIS O'BRIEN
JOHN E. DRAWZ
DAVID J. KENNEDY
JOHN B, DEAN
GLENN E. PURDUE
CHARLES L. LICFEVERE
MARY J, BJORKLUND
LAW OFFICES
L£FEVERE, LEFLER, PE^RSON, O'BRIEN & DR^WZ
IIOO FIRST NATIONAL BANK BUILDING
IVl I N N EAPOLIS. MINNESOTA
November 2, 1979
,///- (6'Z) 333'054'3
),/.\
Mr. Wayne A. Johnson .
Finance Director, County Auditor's"O~f~'ce
Room'A 609, Government Center
Minneapolis, Minnesota 55487
Re:
Plat 61290, Parcel 5915
Beachside Developers Inc. Repurchase Request
Dear Mr. Johnson:
This week I have received from the City of Mound a copy
of a memorandum from Jerome F. Chapman, Assistant County
Attorney, to you as Director of Finance and Records relating
to the Beachside parcel. Mr. Len Kopp, the Mount]_ City
~4anager, is out of town and will not return until next week,
and I have therefore been unable to review with him or with the
City Council their position on this land.'
I have read Mr. Chapman's opinion and have discussed it with
him by telephone. I am not sure at this time whether the
City of Mound has arrived at a satisfactory solution with the
prior owner, Beachside Developers, Inc., but I do not agree
with the opinion rendered by Mr. Chapman. The opinion relates
only to a portion of the wording found, in Section 282.241. The
opinion neglects to point out that with property other than
homestead property, the repurchase of tax forfeited land is
permitted "in any case _only after the adoption of a resolution
by the Board of County Commissioners determining that thereby
undue hardship or injustice resulting from the forfeiture will
be corrected, or permittin_q such repurchase Will promote the use
of such lands to best serve the public interest; provided further
such repurchase shall be subject to any easement, lease, or other
encumbrance granted by the State prior thereto ...". It has been
obvious from the outset that the City of Mound has notified the
County that it is not in the pLf~lic interest that this land be
sold to the prior owner in that portions of the land are necessary
for wet lands and other public purposes. This land abuts Lost
Lake in the City of Mound and is extremely important to the public
/AW OFFICES
L~-FEVERE, LEFLER, PEARSON, O'BRIEN & DRAWZ
Page 2
Mr. Wayne A. Johnson
November 2, 1979
both as a resource and for environmental protection. The
County Attorney appears to assume that the County Board has
some responsibility to rubber stamp an administrative request
for a repurchase without looking into the question of hardship,
injustice, and public interest. I must respectfully disagree
with that opinion.
When Mr. Kopp returns to the City, I would, like to meet
with him and. with the City Council to ascert°ain their position
as it relates to this land.. If the City is to actively pursue
and oppose the County Attorney's opinion, we would then ask for time
to prepare a legal memorandum responsive to the opinion
currently being submitted to the Board.
It is my understanding from talking to your secretary today
and finding that you are ill. and not in the office that this
matter is to be referred to the County Board next week. I
therefore respectfully request of you and of the County Board.
that the matter be deferred and./or continued until such time
as the City of Mound may establish its position and appesr before
the County Board. to state their position as it relates to these
tax forfeited lands. It may be that an a~creement can be reached
with the prior owner which will be mutually satisfactory to it
and to the City. Please call me if our request for a
continuance is not to be recommended by your office.
Very truly yo~rs, /"
Curt±s A. Paarson,
City Attorney
City of Mound
CAP: ih
cc:
Hon. Nancy Olkon, Chairman, Hennepin County Board of Comm.
Commissioner E. F. (Bud) Robb
~.~r. Craig Spencer
Mr. Jerome F. Chapman
Mayor Tim Lovaasen
Mr. Len Kopp
3o3
THOMAS WILLIAM
October 24, 1979
PROKASKY & ASSOCIATES
INC. · AR~,HIT~ECTS
Mr. Leonard Kopp, City Manager
City of Mound
5341 Maywood Road
Mound, Minnesota 55364
RE: HANDICAP ACCESS RETROFIT
Dear Leonard:
I recently checked in with the State Building Department to
see how the proposed wheelchair lift code is progressing.
Mr. Elroy Berdahl informed me that public hearings are
complete and written input may be submitted up to October
30th. The hearing examiner will then take it under advise-
ment to make his evaluation. I wouldn't hold my breath for
his recommendations before the first of the year. It will
then have to be passed and published and the manufacturers
of lifts will have to re-engineer their products before
we'll be able to acquire a lift that meets the code for
public buildings.
I'll keep you informed.
Thomas W. Prokasky ~
TWP/pss
BRANCH OFFICES:
LaJolla. California 92037 '~ ~'
1200 Prospect Street. Suile 150
(714} 459-2661
Northbrook. Illinois 60062
899 Skokie Blvd.. Suite 540
{312) 564-4010
San Francisco. California 94104
220 Sansome Street. Suite 1200
(4151 981-2648
Miller & Schroeder Municipals, nc.' '
170 NORTHWESTERN FINANCIAL CENTER, 7900 XERXES AVE. SOUTH, MIN,NEAPOLI~, MINNESOTA 55431
Member of the Securities Inveslor Protection Corporation $"/'¥ ,/- t
TOLL FREE MINNESOTA 800-862-6002 TEL. 612-831-1500 {:~ ,~. F,EE OTHER STATES 8~0-328-61~
,:/4
~. Leonard L. Kopp, City Manager . I ~/~
City Hall [{~j/~ ~ ~ /~..'~.~-
5341 ~ood Road l~ ~ 0 ~ ~ ' / % ~ -~ "
Mo~d, Minnesota 55364 ................. ,~ ,{
. /,
Dear Len: ...." /~D ~Q ~:'9 , ,/
Enclosed please find the most recent me~r~d~ from Kut~ ~ck & Huie o~
continuing saga of the Ull~n bill (H.R. 3712). As you will read, that bill
has now been retu~ed to {he Ways and Me~s Co~ittee follow~g a somewhat
bizarre, ~ough occasionally entertain~g, hearing before the Rules Co~ittee.
While we are hopeful that this latest maneuver will result in a re-write of
the transition rules allowing several cities which had taken general, rather
than specific, action indicating an interest to issue bonds, to actually
issue their bonds, the timetable is 'uncertain at this point. We will keep
you advised.
~~'Very truly y~urs,_~
E~Cn~dF~anLic~/L-ns~tant
RWL: jcm
Enclosure
303¥
COM M t'~'--r. EE4
EDUCATION AND LABOR
~M Al~.. BUSINESS
COUNTIES:
DAKOTA RIC£
DODGE STEELE
FIL.LMORI~ WAI3ASHA
HOUSTON WINONA
OLMSTED
CONGRESSMAN ARLEN ERDAHL
HOUSE Of REPRESENTATIVES
WASHINGTON, D.C. 20515
October 17, 1979
Honorable Tim Lovaasen
Mayor
City of Mound
5341 Maywood Road
Mound, Minnesota 55364
WASHINGTON OFFICE:
1017 L0~WORTH HOUSE OFFICE J~IILDIN~
202-225-22.7 t
ROCHESTER. MINNESOTA 55901
507-288-2.384
33 £. W£NTWO~rH AVENUE
61Z-7~16
Dear Mayor Lovaasen:
Thank you for your recent letter urging congressional action on the
Mortgage Subsidy Bond Tax Act of 1979, H.R. 3712.
As you may be aware, this legislation has been successfully called
.out of the House Committee on Ways and Means and should be considered
before the full House of Representatives in the near future. I am aware
that several lending institutions in Minnesota have been unable to release
tax exempt revenue bonds for the funding of single family dwellings be-
cause this legislation is still pending.
I would expect this legislation to receive House action by Novem-
ber 2, 1979.
With every best wish.
Sine ~,~rely,
ARLEN ERDAHL
Member of Congress
AE/snb
BRUCE F. VENTO
230 CANNON HOUSE OFFIC£ BUILDING
(2oz)
SAINT PAUL, MIN~:SOTA 55101
(612) 725-7869
d em:e ent ti e
/I/af~ington, ~.C. 20515
October 29, 1979
HOUSE COMMITTEE ON
BANKING, FINANCE AND
URBAN AFFAIRS
SUBCOMMITTEES,.
ECONOMIC STABILIZATION
CONSUMER AFFAIRS
HOUSING AND
COMMUNITY DEVELOPMENT
N~HOUSE COMMITTEE ON
RIOR AND, INSULAR AFFAIRS
ENERGY AND THE ENVIRONMENT
INSULAR AFFAIRS
, ;~-.C;"-"
Honorable Tim Lovaasen
Mayor
City of Mound
5341 Maywood Road
Mound, Minnesota 55364
Dear Mayor Lovaasen:
Thank you for your letter concerning H. R. 3712, the Mortgage
Subsidy Bond Bill.
While the House Committee on Ways and Means had reported the bill,
the House Committee on Rules has sent it back to Ways and Means
for reconsideration.
At this point it is not clear what will happen to the bill before
it again emerges at some unspecified time.
Warm regards.
BFV:mad
~'/ Member of Congress
THIS STATIONERY PRINTED ON PAPER MADE WITH RECYCLED FIBERS
BILL FRENZEL
WASHINGTON OFFICI~t
t026 I.O~;WO~rH
Z02-225-287 !
Congre oi toe niteh btate
as int ton, 20515
october 25, 1979
MAYB~-'r H CHRISTEN 5;EN
1~0 ~DERAI. ~ILDI~
612-72~2173
IRIS SAUNDERSON
3601 PARK CE~ER
Sr. ~s P~ 55416
6tz-gz~40
Mr. Tim Lovaasen
Mayor, City' of Mound
5341Maywood Road
Mound, MN 55364
Dear Mr. Lovaasen:
Thank you for your letter regarding the bill that was introduced to prohibit the
use of tax-exempts for housing. I appreciate your sharing your concerns with me.
The bill has been amended to allow the use of tax-exempts for housing within
limitations and eligibility requirements. However, the legislation is more com-
plex and administratively burdensome than that which was passed at the state le-
vel. This week the Rules Committee sent the bill back to Ways and Means for more
work. It is my hope that the Committee will take advantage of this opportunity
to develop a more workable program that will allow homeownership programs based
on the sale of tax-exempt bonds to continue. ~
I hope this information is helpful to you. If you would like an update or more
specific information, please let me know.
Bill Frenzel
Member of Congress
BF:jb
THIS STATIONERY PRINTED ON PAPER MADE WITH RECYCLED FIBER9
3 o ,Y/
RICHARD NOLAN
6'r~ ~J~'R~'I', MINNESOTA
SMALL BUSINESS
JAMES A, DECHAINE:
CANNON HOUSE OFFICE BUILDING
WASHINGTON. D.C.
o[ i lnitt f tatt
~ouzt ot ~tprezmtati~tz
~aU~ington, ~.~. 20515
October 3[, 1979
ARCHIE BAU MANN
FEDERAL BUlL.DING,
(50~') 637-356~.
SHIRLEY BONINE
RT. I, ~X 88
M~LE PLAIN, ~[NN[5~A 5S359
(61~) 479-Z33t
ST. C~D, MINNESOTA 56301
(612) 252-7580
9ZI 4TH AVENUE
W~INGTON, MINNES~A 561~
(507) 37~4~ ~8
· The Hon. Tim Lovaasen
Office of the Mayor
City of Mound
5341 Maywood Road
Mound, Minnesota 55364
Dear Mayor Lovaasen:
Thank you very much for taking the time to share
your thoughts regarding Mortgage Revenue Bond legislation.
I can well understand your concerns and you can
count on my support.
With best wishes.
~~Sinco yours,
~4ember of Congress
M/ivy
THIS STATI,ONERY PRINTED ON PAPER MADE WITH RECYCLED FIBERS
11-6-79
CITY OF MOUND
Mound, Minnesota
November 1, 1979
COUNCIL MEMORANDUM NO. 79-394
SUBJECT:' Public Hearings - November 6th
The following Public Hearings have been called for N~vember 6th:
Consider issuance of an "On Sale" Beer License for Brantys
Restaurant.
The Police Department has made a report; copy of which is
attached.
Vacation of a part of Kildare Road described as follows:
The south 4.00 feet of said Kildare Road lying between the
northerly extension of the west line of Lot 11, Block 14
said Seton and the northerly extension of the east line
of Lot 10, Block 14 said Seton.
· The Planning Commission recommended that this vacation be
applied for and did recommend its approval.
Mary ~l. Marske
Acting City Manager
3o&?
ON SALE
OFP SALE
$175.OO
$25
APPLICATION FOR LICENSE
SELL NON-IS~OXICAT~4G ]iiLT LIQUOR
Applicanf's ~te Birth , ~A~ Citizen
References: (List t~ee - name and address of each)
SECTION 32.03.
~Rplication for License. ~11 applications for any license to
sell non-intoricating malt liquor shaLl be made on fores to be
suppl~ed by the City setting forth the name of the person asking for
such license, his age~ representations as to his chara'cter %~th such
references as may be required, his citizenship,.the location %~ere such
business is to be carried on, whether such application is for "on 'sale"
or "off sales", the business in connection w-ithwhich the proposed
license ~ill operate, whether applicant is owner and operator of such
business, the tim~ such appl%cant has been in that business at that
place, znd such other information as the governing body may require
from time to time. It shall b~ unla+~ul to make a false statement
in an application.
(Ord. 32 - 4/h/1933 - Ord. 322- 8/22/1974)
CFFY of MOUND
5341 MAYWOOD ROAD
MOUND, MINNESOTA 55364
(612) 472-1155 ,
September 18, 1979
TO:
FROM:
SUBJECT'
Sgt. Wm. Hudson
Off. Robert Hartigan
Background Investigation on James Henry Brugger - Application for license
to sell non-intoxicating malt liquor
Off. Hartigan conducted a background check on James Henry Brugger, dob: 07-16-52.
The following agencies were contacted for records on Mr. Brugger and they'were all
clear: HenneDin County Records, Hennepin County Warrant Office, FBI, BCA, Minneapolis
PD, and Mound PD. Minnesota Drivers License Bureau indicated Mr. Brugger has a valid
drivers license with one violation for speed. Mr. Brugger has lived at 4809 Dupont
Avenue South, MinneapoliS, for the past 8 years.
Respectful ly,
Off. Robert ~artigan
Mound Police Dept.
RH/sh
3 o ,,x,7
~PPLIC~T%ON FOR STREET VACATION
~ITY OF I'IOUND
LEGAL DESCRIPTION OF PROPERTY OWNED BY APPLICANT: PLAT
PJ~.ASON FOR REQUEST__~ f , ,3 2. 1¢
SIGNATURE 6F APPLI~
Address~.~_E_C___~
Applicant's Interest in Property~.~
Residents and owners .of property abutting the street to be vacated:
Council Act::ion
CITY OF MOUND
Mound, Minnesota
November 2, 1979
COUNCIL MEMORANDUM NO. 79-397
SUBJECT: Variance Request - Lots 10 & ll, Block 14, Seton
At the September llth meeting, the Council tabled ~he variance
request and called a public hearing on the vacation of the right-
of-way of the part of Kildare Road adjacent to the subject lots.
Attached is a copy of the application. This is a non-conforming
use requiring a sideyard and front yard variance. The zoning is
A-2/6,000 square feet required for a single family dwelling.
The Planning Commission recommended approval of the variance pro-
vided the applicant apply for and receive a vacation of right-of-
way.
Does the Council wish to consider this request at this time?
Mary ~l/. Marske
Acting City Manager
ms
APPLICATION FC~VARIANCE
CITY OF MOUND
NAME OF /.~
Te le phone
INTEREST IN PROPERTY O~ ~e,~
PLAT ,,-~ Y ¢.J"'~ PARCEL
/'¢ //sLoc
FEE $ ~-'-~ ~
ZONING_ t) ,-- ~,
PROPERTY
FEE OWNER (if other than applicant)
Addre s s
Telephone
Number
VARIANCE REQUESTED: NOTE:
FRONT [ i ACCESSORY I
YARD' FT. BUILDING FT.
SIDE FT.[
YARD I FT:! LOT SIZE
REAR[ [ LOTSQ.
YARD F T. FOOTAGE
1. Attach a survey AND scale drawing
showing location of proposed improvement
in relation to lot lines, other buildings
on property and abutting streets.
.2_, Give Ownership and dimensions of
adjoining property. Show approximate
locations of all buildings, driveways,
and streets pertinent to the application
by extending survey or drawing.
3--. Attach letters from adjoining affected
property owners showing attitude toward
N. C. U. * or request.
OTHER (describe)
~' ibuilding permit must be applied for within one year from the date of the
'~5~Jh~cll ~e'~olution or/y~r~ance gra. n~ed~ec-ornes nul! and void.
VarianCes~are not t/an~rable.///~ ~
~ : ~., . , ,' . {J
P~AN~NG COM~SSION RECOMMENDATION Approval
apply for and receive a vacation of right-of-way.
DATE ~ugust 27, 1979
of 'variance provided applicant
COUNCIL ACTION:
RESOLUTION NO
DATE
;'.-'non- conforming use
;ERTIFICATE OF S
:i
...... ~30.00,~/~~. ,,az
tci I-
I ~ ~47~q 4.~xl
¢0.~.'
.f
££A L D£$ OR IPT'/OA/
07'5/.~, ~7~7o //, /~Z oc.,<'" /4 . S~-7-0/,,/
o
X 000.0
( ooo.o )
Denotes iron monument
Denotes offset stake
Denotes existing elev.
Denotes Proposed elev.
Denotes surface drainage
Proposed garage floor elev. =
Proposed lowest floor elev. =
Proposed top of foundation elev. =
BENCH MARK:
DEMARS - GABRIEL
LAND SURVEYORS, INC.
3030 Harbor Lane No.
Plymouth MN 55441
Phone: (612) 559-0908
I tiereby certify that this is a true and correct representation of a survey of File No.
the boundaries of the above described land and of the location of all buildings,
if a..ny, thereon, and all visible'encroachments, if any, from or on said land.
As surveyed by ethis /' __d, mof J~ ,197% Book-Page
TO: ,~f0Ur~D CITY ,FLANNING COM24I~$t0N .... '
RE: REQUEST FOR VARIENCE TO ENLARGE A DECK AT q~39 KILDARE ROAD.
WE Hj~VE R~IEWED THE PROPOSED DECK EXPANSION WiTH THE OWNERS, RICH
AND MARY SUE PAYNE. THIS EXPANSION:
I,~'YLL NOT / WILL. '
~LL NOT ,,
WiLL ~';~ ~iLL
h%LL NOT ~ ~LL
OBSTRUCT O~JR ViEW OF THE LAKE.
OBSTRUCT OUR VI~ OF-A~ff NATL?~AL SETTING OF INTk~EST
TO~ US.
OBSTRUCT ACCESS TO OUR PROPERTY.
IMPROVE THE VALUE OF THE PRESENT PROPERTY.
OTHER COM~,~NTS:
SIGNED BY
ADDRESS:
3o~.I
TD: ~,~ CITY PLANNIN~ C0~4ISSION
RE: REQUEST FOR VARIENCE TO ENLARGE A DECK AT ~'-;~ KILDARE ROAD.
WE HAVE REVID;ED TtUC PROPOSED DECK EXPANSION WITH THE (Y~NERS, RICH
AND ~RY SUE PAYNE. THIS EXPA~ISiON:
%,~--LL NOT_~ ¥,~fLL .
%'~LL NOT__~__ W!L~
%.~LL :~OT~_ WiLL..
'.%LL NOT %~LL~_
OBSTRUCT OUR VIE~; OF THE LAKE.
OBSTRUCT OUR VIEW OF ANY NATb~RAL SETTING OF INTEREST
TO, US.
OBSIRMCT ACCESS TO OUR PROPERTY.
IMPROVE THE VALUE OF THE PRESE~T PROPEF~TY.
OTHER COM~.~NTS:
S ...... n BY
,]O.Lo
ID." ~D;3~'~D CITY PLAN~ING COMJ~SSION
!
RE: REQU~T FOR VARIENCE TO ENLARGE A DECI~ AT ~73~ K~LDARE ROAD.
WE HAVE REVIM~tED THE PROPOSFaD DECK EXPANSION WITH THE (YJN~$, RICH
AND 5~RY SUE PAYNE. THIS EXPANSION:
WiLL ;';OT V' WILL
WILL NOT ~'~ WILL
WiLL,,~ ~'-' WiLL
WILL NOT %~LL /
OBSTRUCT OUR Vi~ OF THE LAKE.
OBSTRUCT OUR VIE'~ OF AN~f NATURAL SETTING OF INTEREST
TO~ US.
OBSTRt~CT ACCESS TO OUR PROP~.TY.
IMPROVE THE VALUE OF THE PRESE~T PROP~iTY.
OTHE~ CO.'..S,.%~fI'S:
SiG?.~ED BY
ADDE F.S$:
CITY OF MOUND
Mound, Minnesota
October 29, 1979
COUNCIL MEMORANDUM NO. 79-392
SUBJECT: 1978 Audit
Attached is a copy of the Audit Letter from the Auditor.
The Auditor will be at the November 6th meeting to answer any questions
the Council may have.
Leonard L. Kopp
cc: J. Gregory Murphy
Nels Schernau
3o12
GEDI~GE M. HANSEN COMPANY
Certified Pttblic Accountants
I 75 SOUTH PLAZA BUILDING WAYZATA BOULEVARD AT HIGHWAY ! O0
MINNEAPOLIS. MINNESOTA 55416
October 5, 1979
The City Council
City of Mound
5341Maywood Road
Mound, Minnesota 55364
Dear Councilmembers:
As a regular part of our audit work, we make certain observations which we feel
may be of interest to you. These observations refer only to those areas to which
our audit work extended.
It is our responsibility to comment on the internal control of operations. Internal
control is defined as the segregation of duties so that no one employee has complete
control over an entire transaction. Strong internal control suggests that the work of
one employee becomes an automatic check on the work of another employee. The com-
ments which follow are suggestions for strengthening internal control based upon both
our experience and our observations of similar situations in other governmental
entities.
INTERNAL CONTROL AND RELATED MATTERS
Segregation of Duties
At present, persons who are authorized to receive cash also prepare bank deposits,
have access to accounting records and prepare bank reconciliations. We recommend
that these responsibilities be realigned so that the bank reconciliations are
performed by an employee having no (or limited) access to the input terminal for
accounting data, and that deposits be prepared by someone other than the cashier.
Change Fund
Employees have been allowed to cash personal checks using the City's change fund.
This constitutes a weakness in internal control. We understand that this practice
is now prohibited.
Change funds should be counted periodically by someone other than those employees
who have access to the change funds to help insure that they are being used properly.
Bank Reconciliations
Revenue and expenditure financial accounting records are not being used in monthly
bank reconciliations, nor are cash and investment balances being reconciled to ·
cash by fund as recorded in accounting records. Non-use of these tools thwarts the
control inherent in the double-entry system of accounting and can result in major
inaccuracies as well as loss of assets.
3o/7
The City Council
City of Mound, Minnesota ~
October 5, 1979
Page 2
INTERNAL CONTROL AND RELATED MATTERS_(CONTINUED)
Liquor Time Cards
We noted that on occasion employees do not sign their time cards (which appear to
be made out by the Liquor Store manager). The signatures of both the manager and
employee should appear on the time card of each hourly employee.
Disbursements
No evidence was found during our examination to indicate that all invoices submitted
for payment had been footed or extended by City personnel. Paid invoices are at-~. ~
tached to verified claim forms but are not cancelled with a "paid" stamp. We
suggest implementation of both these procedures as a means of preventing overpayment
or duplicate payment.
Income and Expense- Liquor Store
At present, all control of liquor store income is concentrated in the hands of one
employee, the liquor store manager. Daily sales reports are compiled by using
cash register tapes and deposits, but these reports are not reviewed by finance
personnel. The income recorded in financial accounting records is only the daily
deposits, as evidenced by the bank deposits, and no entries are made for cash
overages and shortages.
Merchandise invoices are presented to the finance office by the liquor store manager
for preparation of checks. The checks are then given to the liquor store manager
for distribution to vendors. The extensions of invoices do not appear to be
regularly reviewed.
Internal control is weak in these areas and could be improved in the following
manner:
1. Independent review of daily sales reports, cash register tapes and
deposit slips should be made by finance personnel on a daily or
weekly basis.
2. Income entries into LOGIS system should include a breakdown by
sales category, including sales tax and cash over/short. These
can be recorded on the City receipt which is made out daily.
3. Vendor invoices, on which appear liquor store personnel initials
indicating receipt of all listed merchandise, should be submitted
to finance personnel who would then perform extensions and footings,
prepare checks and disburse the checks to vendors.
The City Council
City of Mound, MinnesOta
October 5, 1979
Page 3
INTERNAL CONTROL AND RELATED MATTERS(CONTINUED)
Income and Expense - Liquor Store .(Continued)
4. Entries to the LOGIS system for items such as depreciation,
prepaid expenses and inventory adjustments should be made on
a monthly basis by finance personnel.
5, Original cop~.~ of paid bills, etc. should be retained on the
City Hall pre~ises with duplicates, if necessary, at the
liquor store.
Contracts
Contracts for a number of improvement projects, which were in progress during 1978,
could not be located at the City office and thus were not available for our examina-
tion. We also noted that a duplicate payment had been made to one contractor and
that, in another instance, the County had not billed for its portion of a project.
The weaknesses in control evidenced by these findings could be remedied in the
following manner:
1. Maintenance of contract files, by contractor.
2. Assignment of responsibility to one City employee to:
a. Compare payment requests with contract quantities and prices.
b. Maintain a record of disbursements made on each contract.
c. Invoice other entities for amounts due the City in relation
to projects and follow up on the collections of all amounts
due,
Reliance placed on consultants hired to perform City functions should be accompanied
by a review by City personnel as to reasonableness of amount and appropriateness
of items.
Permits
Prenumbered permits are .not~ in use for other than building permits. Internal
control would be improved if all permits were prenumbered.
An obsolete series of prenumbered receipts is being used for the receipt of permit
revenues. These receipts are periodically compiled and the totals recorded on City
receipts which are used for entry data into the financial accounting system.' The
use of the obsolete receipt series diminishes the internal control inherent in
use of a single series of prenumbered receipts unless the responsibility for
maintaining numerical control is assigned to a particular employee. We feel
opportunity for error would be reduced if use of the obsolete series were eliminated.
The City Council
City of Mound, Minnesota
October 5, 1979
Page 4
OTHER MATTERS
LOGIS System of Financial Accounting
It has been our experience that this system is an effective means of providing
necessary information about the financial operation of a municipality as well as
establishing adequate controls over records so as to prevent loss or destruction.
However, the reliability of any accounting system is dependent upon the
consistency with which data is put into the system and its usefulness is dependent
upon personnel being able to understand what information the system will generate.
We have observed that weaknesses exist in both of these areas. There appears to
be a need for improvement in the following areas:
1. Coordination of accounting clarifications between budgeting,
accounting and reporting systems.
2. Clear and consistent delineation of appropriate revenue and expend-
iture classifications by fund, department, program and object.
A procedure should be established for informing all personnel involved
of these classifications and the responsibility for review of LOGIS
records after data input should be assigned in order that errors can
be noted and corrected on a timely basis.
Special Assessment Debt Service Funds
Bond covenants of all improvement bonds issued by the City require that complete
records, showing all receipts and disbursements in connection with the improvement,
the taxes and assessments levied therefor, other funds appropriated for their
payment, collections and disbursements, cash on hand and the balance of unpaid
assessments, be kept for each bond issue. These records are not presently being
maintained. We recommend that the necessary information be assembled; that
accounts be set up to establish the required records; and that, thereafter, the
records be maintained as required.
Special Assessments - Amounts To Be Levied Per Pro].e~t
During our examination of the costs related to projects assessed during 1978, we
were unable to reconcile costs per project as listed by~e City with totals given
by the consulting engineer. In order to prevent loss to the City in the form of
unassessed costs, we recommend that a detail of the costs of assessed projects be
requested from the consultant, and that these costs be reviewed and reconciled to
the City's accounting records prior to Council adoption of the assessment roll.
The City Council
City of Mound, MinneSota
October 5, 1979
Page 5
OTHER NATTERS (CONTINUED)
Liquor Operations
Gift Certificates - We observed that gift certificates were being
issued at a discount to a local civic organization. Receipts
received upon sale are being held at the liquor store until a
certificate is exchanged for merchandise, at which time the.cash
is deposited with the daily receipts. The procedures being followed
do not provide adequate control of cash, nor of the certificates
themselves.
We recommend that a policy be established relative to the issuance
of gift certificates. Opportunities for discounts should be made
available to all customers on an equal basis. Receipts should be
recorded and deposited as received; certificates should be pre-
numbered; physical and accounting controls should be established
over both issued and unissued certificates.
NSF Checks - NSF checks in the amount of $120.14 are included in the
liquor store change fund. As there is little prospect of collection
due to the age of these checks, they should be written off and the
change fund reimbursed.
Monthly Profit and Loss Statement - The monthly profit and loss state-
ment for the liquor store is presently contracted for with an outside
accounting service. We feel this statement could be produced from
information available from the LOGIS system after certain adjustments.
We recommend that an employee be trained in this area so that the
outside service could be eventually terminated.
Inventories - Bottle tags utilized to take the physical inventory at
December 31, 1978 were consolidated and original amounts erased as
totals for each item were compiled. Compilation procedures should be
designed so that original data is not lost.~ To lose the original data
considerably weakens the control provided by a physical inventory.
Inventory adjustments are presently made only by the independent
accounting service and are not reconciled in the financial accounting
records of the City. Procedures should be established so that
accounting personnel are responsible for calculating and recording any
inventory adjustments.
3o1
The City Council
City of M0und, Minnesota
October 5, 1979
Page 6
OTHER MATTERS (CONTINUED)
Utility Billing System
The LOGIS system of utility billing is being used by the City. During our examina-
tion we noted an unusually large number of billings which were in error and had been
changed manually prior to being sent to customers. These. errors appear to be the
result of two problems:
1. Lack of complete understanding of how to enter corrections into
the system.
2. Lack of compatibility between certain water and sewage rates and
the capacity for LOGIS to compute these on a single billing.
We understand that the first problem is in the process of resolution by consultation
between LOGIS and utility billing personnel. Alternative methods of resolving the
second problem have been suggested by LOGIS personnel in an August 1, 1979 memorandum
to the City Clerk-Treasurer and utility billing clerk. We recommend that a decision
be made on these alternatives so that adjustments to the billing register can be
held to a minimum.
At present, accounts receivable controls for utility billings are not being main-
tained. We suggest that controls be established immediately and be maintained on
a monthly basis to improve the accuracy of recording revenues in the utility funds.
Inventory - Water Utility
We observed that no records of meter inventory are being maintained, nor is a
physical inventory regularly taken. As the meter inventory represents a significant
dollar amount, we recommend the following records and procedures be established:
1. Public Works Department
a. Perpetual inventory record of meters.
b. Physical count of meters, periodicallM and reconciliation
with perpetual records.
c. Tabulations of meters installed and appropriate billings
by month.
2. Utility Billing/Cashier/Finance
a. Monthly reconciliation of meters billed by utility billing
clerk, meters sold on building permits and meters installed
by Public Works Department.
b. MOnthly reconciliation of meters billed and sold with
revenue recorded in LOGIS revenue reports.
3o15.
The City Council
City of Mound, Minnesota
October 5, 1979
Page 7
OTHER MATTERS (CONTINUED)
General Fixed Assets
We suggest that a fixed asset system be set up so that assets of the City can be
adequately accounted for. This system should include a property ledger for furniture,
equipment and similar items. Otherwise, loss or pilferage could occur and remain
undetected. A physical inventory should be taken annually and compared with assets
listed in the property ledger. Identification would be made easier by affixing
prenumbered tags to the property with the tag numbers listed with the description
in the property ledger.
Bank Accounts
The City presently maintains five bank accounts with three banks. This creates con-
siderable confusion when receipts and disbursements are recorded, resulting in errors
which can only be corrected by checks being written from one account to another.
During our examination we did not find any reason for separating funds of the City in
this manner and we suggest consolidating all checking accounts into one with the
exception listed below:
It has been our experience that an imprest checking account for payroll
expenditures is a useful tool to many municipalities. We feel that the
City of Mound could benefit by use of an imprest payroll system as it
would facilitate bank reconciliations.
Collateral
Collateral pledge agreements with banks designated as depositories for City funds in
1978 could not be located during the course of our examination. State statutes
require annual agreements be executed with each depository and copies of these agree-
ments be retained on file by the City.
Payroll Accruals
Payroll disbursements are being cumulated in accrual accounts rather than reducing
cash balances in the financial records. This procedure should be changed immediately
by closing all accruals into cash (reconciling cash balances per fund with balances
as reported per bank simultaneously) and thereafter closing accrual accounts as checks
are released for disbursement. Cash balances on the accounting records cannot be
reflected accurately and in a timely manner unless this is done.
Payroll
w-4 forms were not on file for a number of City employees. This file should be updated
and maintained on a current basis to comply with Federal law. ~
The City Council
City of Mound, Minnesota
October 5 1979
Page 8
OTHER MATTERS (CONTINUED)
Due to/from Other Funds
We noted that a number of inter-fund loans are being carried by various funds. It
would appear that the majority of these loans were originated a number of years ago.
We suggest that Council determine which of these should be repaid and which considered
permanent transfers and authorize the finance department to initiate appropriate
action.
Personnel
Financial accounting requirements of the City appear to exceed the time availability
of present personnel. We recommend that the Council consider hiring an additional
employee who would have sufficient accounting and data processing education and
experience to assume responsibility for the maintenance of the financial accounting
records. The duties could include the additional work involved in implementing
audit recommendations, a number of which appear to us to be imperative rather than
optional. Benefits would include an increase in reliance on accounting records,
timeliness of financial information, elimination of need for outside accounting
services, and an improvement in internal control and safeguarding of the City's
resources.
We would be happy to discuss these recommendations further with you and assist with
any changes you may wish to make.
We wish to express our appreciation for the courtesy and assistance extended to
us during the course of our examination.
Very truly yours,
JGM: grad
GEORGE M. HANSEN COMPANY
J. Gregory Mu~rphy
Field work completed September 25, 1979.
CITY OF MOUND
Mound, Minnesota
November 1, 1979
COUNCIL MEMORANDUM NO. 79-395
SUBJECT: 911 Plan for Hennepin County
Attached is a copy of a memorandum from the Police Chief relative to
the 911 Plan for Hennepin County and a copy of a resolution that, if
adopted, will certify the plan prior to its going to the Hennepin
County Board.
ctJ~ig City Manager
tI TEROFFICE MEI
TO:
FROM:
SUBJECT:
Leonard Kopp - City Administrator
Chief Charles Johnson
911 Plan for Hennepin COunty
DATE: October 20: . 1979, '
As you are awar~ for the past several months, HECO has been involved in developing
the 911 emergency call plan for Hennepin County. This plan has been developed in
compliance with Minnesota Statute Chapter 403.
As the representative for the City of Mound to HECO, I have reviewed the plan and
voted for it at the October 17, 1979, HECO board meeting. At this meeting it was
decided that it would be appropriate for all participatin~ municipalities to
Certify the plan prior to it §oing to the Hennepin County Board for certification.
I recommend that the attached resolution be presented to the City Counsel for
their approval. If approved, the resolution should be forwarded immediately to HECO.
Respectfully,
Chief Cha~./Yes Johnson
Mound Police Department
CJ/sh
Attachments
WHEREAS, Minnesota Statutes 403 require that each
county submit a final 911 plan to the Department of Administration
by December 15, 1979 and each county shall have an operational
911 telephone system by December 15, 1982; and '
WHEREAS, the Hennepin Emergency Communications
Organization (HECO) has prepared a final "911 Plan For Hennepin
County" that has been submitted to the Hennepin County Board of
Commissioners; and
WHEREAS, the ruleS promulgated by the Department
of Administration which govern the design and operation of 911 systems
in Minnesota require a certification by the county board that t.he final
911 plan meets the needs of the safety agencies whose services will
be available by dialing 911; and
WHEREAS, representatives of the City of Mound
have participated in the development of the final "911 Plan For
Hennepin Cour{ty".
NOW, THEREFORE, IT IS RESOLVED that the City of
Mound hereby certifies that the final "9 11 Plan For
Hennepin County" meets the needs of the safety agencies whose services
are available within the City of Mound ; and
IT IS FURTHER RESOLVED that the City of Mound
recommends that the Hennepin County Board of Commissioners approve
the final "911 Plan For Hermepin County" as submitted by HECO.
11-6-79
CITY OF MOUND
Mound, Minnesota
November 1, 1979
COUNCIL MEMORANDUM NO. 79-396
SUBJECT: Swenson Agenda Request
Councilman Swenson has requested time on the agenda to discuss a
Police matter.
'Mar'9-~. Marske
Acting City Manager/,/[,
ll-6-'
CITY OF MOUND
Mound, Minnesota
October 29, 1979
COUNCIL MEMORANDUM NO. 79-393
SUBJECT: Industrial Revenue Bond Criteria
Attached is a proposed draft for criteria in issuing Industrial
Revenue Bonds.
The blanks for dollar amounts have been left open for Council con-
sideration. Recommendation is: Minimum bonds of $250,000 -- escrow
account of $2,500.
I_eonard I. Kopp
C I T¥ OF MOUND, M I NNESOTA
POLICY AND CRITERIA AS TO-THE REVIEW OF
MUNICIPAL INDUSTRIAL DEVELOPMENT BOND
APPLICATIONS
GENERAL
The City Council has been granted the power to issue revenue bonds, commonly
called Industrial Development Bonds (IDB's), by the Minnesota Industrial De-
velopment Act, Ch. 474, Minneaota,Statu%es (the "Act") of 1976, as amended. '
The Mound City Council, being aware that such financing may be of benefit to
the community by attracting industry and expanding employment opportunities
and assist it in redevelopment financing thereby eliminating blighted land,
has exDressed its support for the use of such bonds but has reserved the right
to approve or reject projects on a case basis taking into consideration the
following factors:
Co
The industrial or commercial project shall be compatible with the
overall development plans and objectives of the City and of the
neighborhood in which the project shall lie and the project shall
be for less than $ /~.~'r~-~ after exclusion of any retail in-
ventory.
The project shall be of a nature that the City wishes to attract,
or an existing business the City wishes to have expand within the
City considering potential for employment, incentive for further
development, increase tax base, impact on City service needs and
support for industrial or commercial operations currently located
in the City.
The tot.al aggregate amount of industrial development bonds and/or
exempt mortgages outstanding at any one t~me shall not exceed 5.
of the total~~a~~ (taxable) valuation~of~Z.~_~.~Lt~e City. ~~.~_~_~.
The City recognizes that the provisions of the Industrial~Develop-
ment Act provide industrial and commercial enterprises with potent-
ially significant savings in financing costs. These savings are
intended to provide the enterprise incentive to locate or expand in
Mound. The City will not look favorably on the use or IBD's for
limited partnerships and other forms of tax-sheltered business or-
ganizations whereby individuals gain personal tax advantages.
The application cannot be considered by the City Council until tent-
ative City Code findings and requirements have been made with respect
to zoning, building plans, platting, streets and utility services.
The applicant's proposed facility, or expansion of an existing one,
shall provide a significant number of new jobs within the City.
go
The applicant shall select qualified financial consultants and/or
underwriters as well as legal council to prepare all necessary doc-
uments and materials. The City Council and the Economic Develop-
ment Commission may rely on the opinion of such experts and the
application shall be accompanied by applicant's letter of intent and
a financial analysis by the underwriter regarding economic soundness
of the applicant as well as the financia) consultant/underwriter
opinion regarding the financial strength of the applicant,
feasibility of the project and ability to sell the bonds, or,
in the case of tax exempt mortgage, a tentative letter of com-
mitment from the lending institution.
The applicant shall be required to furnish seven (7) copies of
the following materials: 1) certified;:annual audits for the last
two fiscal years; 2) the most recent quarterly financial figures;
3) the most current rating report of Dun & Bradstreet; and 4)
the applicant's realistic financial forecasts for a period of not
less than three years; and' 5) such other information as may be re-
quired by the City to propert]y review the application. Publicly
held applications shall submit the most recent annual Form IO-K
and quarterly Form IO-Q Securities and Exchange Commission reports
in lieu of Items a thru d above. The Council may submit this data
to financial analysts of its choice. The financial analysts will
review the data and make such written comments to the Council as to
the current and projected financial position of the applicant in or-
der that the Council will be in a position to ~easonably evaluate
the applicant's ability to assume costs which are incurred by the
City in conducting this fiscal review.
The applicant shall select qualified financial consultants and/or
'underwriters to prepare all necessary documents and materials re-
quired for a Municipal Industrial Development Bond sale, who will
submit a letter of intent which establishes the favorable feasi, bil-
ity of the project. The applicant shall be required to assume all .:
costs which may be incurred by the. City in examining legal and/or
fiscal aspects of the proposed project.
The applicant must not commence any part of the construction of the
project until there has been pr. eliminary approval by the Council of
the application for financing.
k. The City Council reserves the right to deny any application for fin-
ancing at any state of the proceedings prior to adopting the final
resolution authorizing issuance of industrial development bonds.
1. The City is to be reimbursed, and held harmless, for and from any
out-of-pocket'costs related to the actual or proposed issuance of
the bonds. An escrow account in the~h~t of $ ._ .~ shall be
established to reimburse the City for its costs.
II. ADMINISTRATIVE ..
a. The applicant shall make an application for financing on forms avail-
able from the Director of Finance of the City of Mound. The applica-
tion shall first be reviewed by the City's Economic Development Com-
mission at a special meeting called for that purpose and such Commis-
sion shall forward a recommendation to the City Council. Specific
findings shall be made regarding employment and satisfaction of public
purposes of the Act.
The applicant shall furnish a description of the project, site plan,
rendering of proposed building, brief description of the applicant
and the' proposed financing in such form as shall be required at the
time of application. Such data is to be furnished to members of the
City Council for background information only.
All applications and supporting materials and documents shall
remain the property of the City.
The Industrial Development Act also permits the Council to issue bonds fOr certain
non-profit corporations. While the Council may consider such requests, the non-
profit corporation shall be reviewed in accordance with the criteria noted above as
well as the following special criteria:
ao
The applicant's enterprise will directly fulfill strategic d~velop-
ment objectives of the City.
The applicant's enterprise will provide a significant~,number of new
jobs for the City.
The services rendered by the enterprise shall be of direct benefit
to a large segment of the City's population.
3oo
11-6-79
CITY OF MOUND
Mound, Minnesota
November l, 1979
INFORMATION MEMORANDUM NO. 79-114
SUBJECT: Wine License Application
The House of Moy has decided to withdraw their Wine License application.
They may wish to make application sometime next year.
Inasmuch as notice of the public hearing was published, it is recommended
they be billed for the cost of the legal notice.
Mar~y. Ma'rske
Acting City Manager
.. ool
CITY of MOUND
5341 MAYWOOD ROAD
MOUND, MINNESOTA 55364
(612) 472-1155
November 1, 1979
TO:
FROM:
SUBJECT:
Leonard Kopp - City Manager
Charles Johnson - Chief of Police
Traffic Accident survey in the area of Cty.'Rd. llO& 15
The city council requested traffic accident information for the area
of Cty. Rd. 110 immediately north of Cty. Rd.. 15 in the area of the
Mound Medical Clinic. Earlier this year the council was presented
traffic accident information for this area incorporated with information
on the entire downtown district. This information was subsequently
forwarded to the Hennepin County Engineer together with a formal
request for a complete traffic analysis. On October 29, 1979 I spoke
with Mr. Dennis Hanson, Hennepin County Traffic Engineer, who stated
that the traffic analysis, which includes traffic accident information,
and suggestions for improvement is nearly completed. He stated that
he would forward the report to the city by November 16, 1979. The
information on the entire district including the area in front of the
Mound Clinic will then be available for council review.
Respectfully,
Chief of Police
CJ: 1 ao
INFORMATION MEMORANDUM NO. 79-115
SUBJECT: Traffic Accident Survey
Above is a copy of a memorandum from the Police Chief relative to a
report on the traffic analysis that is being completed by Hennepin
County on the area of COunty Road 110 and the Mound Medical Clinic.
The original survey was discussed January 9, 1979 (See I.M. 79-6 on
pages 145-147+) Marry H.~M~ r s~ke~
Acting City Manager
1-6-79
CITY OF MOUND
Mound, Minnesota
November 2, 1979
INFORMATION MEMORANDUM NO. 79-116
SUBJECT: Beachside Property
The attached memorandum was received from the County to advise
Mound of the County Attorney's opinion on the matter. A copy has
been forwarded to the City Attorney.
The resolution for repurchase by Beachside Developers will probably
be considered by the County Board on November 8th.
Mary ~. Mar's~ ~'
Acting City Manager
MEMOIL ,N DUM
P,.E: ?LAT 61290, ~'~RCEI'. 5915, CITY OF' MOUND
(Now per Division No. 792074 ~.I.D. ~os. 24~117-24-22-0016
and 00].7)
DATE: OCTOBER 22, 1979 -. '. ..
· Y6~r memo (copy' attached) requests the County
Attorney's advice as to whether either Beach Side Developers,
Inc:. (the owner of the property at the time of its forfeiture'
on March 13, 1979) or the City of Mound has a:p~ibrity as 'to
their respective 'applications. 'i~he pertinent facts 'appear
to be as folloWs..
On March 22, '1979, the owner made and submitted
its application wiht its c~ec~ .t.o repurchase th~' whole 18 3/4
acres of. the l~nd pursuant to M.S. §282.241 to the forfeited
land uhit of County Finance. Division which promptly processed
the repurchase application (with prbposed'~BA recommending
the repurchase) for submission to the County Board. I
assume from your memo that ~e~ause of the City of Mound's
letter, received on March.26, 1979, the Board did not act en
the matter but for some reason referred it to A~ministration.
.On April 25, 1979 (-34 days after the owner's said
application), the City of Moun~ made application to the
Forfeited Land Unit f~r a c0ny~yance by the S~ate'of all of ~
the land to the City (for no monetary considerat'ion) for
· public useage. Again, on AUgust 7, 1979 .(4 mont'hs and 16
days after the.o.wner!s said application), the.City made a
second application for a f~ree conveyance to the City of only.
approximately .13 3/4 acres of the total 18 3/4 acres for
public useage. ,
Upon inquiry,-I am advised that the C~unty Board at
the time of the owner's application had ~?t' fSI. cd a list
'pursuant to M.S. ~282.322 of Qny forfeited landJ with the
County Auditor which fili.ng .would have authorized or allowed
the Auditor (thereby authorizing the Eoard) to withhold the
subject land from repurchase by the owner because the land
.might be acquired by the City for public purposes.
M.S. 3282.241 allows the-owner at the Rime of the
land's forfeiture to repurchase i~ unless it has'.been sold ..
or is under mineral permit or lease or a condemnation (eminent
domain) proce, edings has b~en commenced to acquire the land.
M.~. 3282.01 (first paragraph) provides two v~aYs
by which the City may acquire tax forfeited la'nQs, for a
public purpose. It may acquire such land free, without
consideration, ilfor a public use subject to reversion to the
~State ~}.',on the event of. the ceasing of the public use of the
property, or i~ may acquire tke· property by payiDg its
appraised value to the State free of such revers'ionary
oo
possibility.
. Th~ owner has the right to repu{chase pursuant to
M.S. §282.241 and, under normal circumstances, if the land
has not been.repurchased or.otherwise sold to an individual,
the City could acquire it'pursuant to M.S. §282.01
The law recognize~ the equitable propositions whic]~
state "where there are equal equities in favor of two different
persons or entities, the first in order of time shall prevail".
Benson vs. Saffert-Gugisber~ Cement Construction Co. 159
Minn. 54, 198 NW 297; ·Salem Trust Co. vs.' ~anhf~cturers
Finance Co. 264 U.S. 182, 44 SCR 266, 68 LEd %28.; Johnson :.
vs. ttayward, 103 ~IW 1058, 74 Neb. 157; and "equity re~ards
that as done whic. h ought 'to have been done", ~arrey vs.
Nelson, i85 Minn. 487, 24.2 ~!:,I 12; Gil'les vs. Sprout, 293
Minn. 53, 196 NW2d 612. '
Applying the above concepts of law to. t~e facts of
this matter, I advise you that in my opinion the owner of ..
,,
the property at the time"of forfeiture, Beach Side Developers,
Inc., appears to be entitled to prevail ~nd that its applicaLion
should be acted upon by the C6u~ity Board in der~ogation to
the' City,s application because its prior application is best
in right or pr!or in right ~o't}~e City's application. 'This
would appear to be true more so because it would, appear that
the true owner at the time of forfeiture would, .as the p~ior
legal owner,~ possess a greater legal interest or .greater
equity'in th~ subject land.
" Further, it would a~pear that the law gives neither
th~ County Administration nor the County Boar~ the authority
to defer action on the owner's application merely on the
strength of a letter from the City of Mound such as was
received in this' instance. In effect, Said letter may be
eqRated to the. so-called interg, overnmental agency communications
known as legally unauthorized "hold orders" which our Supreme
Court has denounced as unconstitutional attempts to deny an
owner the full use and enjoyme, nt of his lands.
The County must also consider its possible liabilit'y
in a State or Federal Court lawsuit by the owner against 'the
County and the city of Mound for damages which the owner
might}claim resulting fro~ a "conspiracy, between the County'
and ghe City for failure of the County to act promptly on
the owner's application to r~urchase.
_ tO:
HENNEPIN FROM:
· SUBJECT:
Octobe, I;!, 1979
CI]uck Hal I, Assistant' Coujity Attorney
Wayne A. Johnson, Director, Finance &
· Record's
Plat 61290,-Parcel 5915, City of Mound
Tile county of Ilennepin has this here I)roblem and sm'el3;, needs sound legal help
and we would appreciate it if you tvc~uld find it for us. He're's our problem:
A developer.wllo, owns a substantial piece of property in tile city of Hound, on
March 22, ]979,'offered to redeem the property which had been delinquent for
several years: .He found that tile property had been forfeited on approximately'
Harch 13', 1979,.much to his chagrin, tie then 9ave Us a check and made out an
appl.ication to repurchase as of'that fJate. Oil tt~e same (late a letter was
writ'ten by the city manager of Hound to Commissioner Na~my Olkon, which was
· received on March 26, to please hold the consideration pti this .application as
Mound would like to work out some type of agreement wit}] the said developer.
On March 27, tile County Board decided that this matter should be referred 'to
Administration for. at~;ention. .
~During the past several months the city of Mound and the developer have been
unable to arrive at any agreement on tile subject property. As a result, tile
city has made out an applidation for .conveyance of tile tax' forfeited land for.
their public purposes. That applica'tion is dated April 25, 1979, and state~
that the property is needed'for streets, utilities, park .and wetland purposes·
~,le are at a point wl~ere the deyeloper wishes this issue to go before the County
Board of Commissioners as his'time is running. The purpose of this memo is to ,;
obtain your best advice as to Whether either party have a priority in the matter ' .,
so we may recommen~ to the County BOard wl~at actitN1 Should be taken. I a~l~ -,"
informed that no matter who finally obtains the property, the other party will
contest the matter. Whether or not that means court I am not sure. However,
for the reasons stated there i's some need for us Lo settle this issue rapidly
and I would appreciate hearing fFom'you in the near future. I have discussed ·
this. matter with Floyd Olson and he is familiar with the problem. I have.ab.o, ut
six inches of paper work that is in this file that may be of some help. Pledse
let me.hear from you or your abl~ representative.
pg .'.
'" cc: Floyd Olson~,/" '
Vernon Itoppe
CLAYTON L. L£FEVERE
HERBERT P. LEFLER
CURTIS A. PEARSON
J. DENNIS O'BRIEN
JOHN B. DEAN
GLENN E. PURDUE
CHARLES L. LEFEVERE
JAMES P. O'MEARA
~,ARY J. BJORKLUND
LAW OFFICES
LEFEVERE, LEFLER, PEARSON,O'BRIEN & DRAWZ
I100 FIRST NATIONAL BANK BUILDING
MINNEAPOLIS, MINNESOTA 55402
October 26, 19 79
TELEPHONE
(612) 333- 054,3
Mr. Len Kopp, City Manager
City of Mound
5341 Maywood Road
Mound, Minnesota 55364
Re: Continental Telephone Rate Case
Dear Len:
On October 25, I was contacted by Referee George
Deterich who is a hearing examiner for the Minnesota State
Board of Hearing Examiners. He inquired whether I had
objection or the City of Mound would have objection to severing
rate designs and zone rates in the Continental case. I have
today been served with the documents by the Continental
Telephone Company which more accurately reflect what they
are seeking to do. I have indicated to the referee that the
City of Mound does not have objections, and I believe the referee
is going to go ahead and order the severance and present that
to the Minnesota Public Service Commission.
In short, what has transpired is that the Continental
Telephone Company has borrowed money on a short term basis for
their 1978 and 1979 construction programs. This money has been
borrowed from the First National Bank of St. Paul and the Chase
Manhattan Bank who have agreed to loan the company up to
$24,000,000 at the prime interest rate together with a
requirement of 15 percent compensating balances. This agreement
terminates on December 31, 1979. This results in Continental
Telephone paying an effective annual rate of 17.65% for the
money it has borrowed. Continental has two loan applications
with the United States Deoartm. ent of A~riculture REA administration
to borrow $20,000,000 at 8%. REA has indicated they will not
approve those loans until zone rates are d. one away with. Zone
rates are one of the things which were fought over in 1978 and
LAW OFFICES
L,-FEVER£. LEFLER. PEARSON.O'BRIEN & DRAWZ
Page 2
Mr. Len Kopp, City Manager
City of Mound
October 26, 1979
should have no affect on the City of Mound. It is the
differential between the rates charged in small cities through-
out the state and the rate charged to the rural area. Currently
the Public Service Commission requires a $1.00 a month zone
rate for the rural areas, and this is going to have to be done
away with before REA will consider approval of these loans.
I am enclosing herewith copies of all. the materials
served upon me by the Company, and I suggest that you may want
to make this available to the council if any of them want to
read the material, but I see no point in reproducing this large
amount of material unless the councilmen show an interest in
having the data available.
V/~.~ y truly yo~,
CAP: ih
EnclOsure
Continental Telepho
of Minnesota, Inc.
Suite 300- Hudson Road Office Pork
6053 Hudson Rood
St. Paul, Minnesota 55119
(612) 739-1530
October 25, 1979
Curtis A. Pearson
City Attorney
City of Mound
1100 First National Bank Building
Minneapolis, Minnesota 55402
RE: Continental Telephone Company of Minnesota, Inc.
Docket No. P407/GR-79-500
Dear Mr. Pearson:
Enclosed herewith is Continental Telephone Company of Minnesota's
Motion for Severance of the Question of Rate Design in this Proceeding
and Certification of the Issue to the Minnesota Public Service Commission
and Verified Motion for an Order Concerning Rate Design along with
Certificate of Service to all parties of record which was filed with the
Office of Hearing Examiners. ~
~ ........ Si~...cerely, ~,~
Marilyn B~Vogel
Public Affairs/Adminis ' Manager
MBV: s kb
enclosure
BEFORE THE MINNESOTA OFFICE OF HEARING EXAMINER~
1745 University Avenue"
St, Paul, Minnesota 55104
FOR THE MINNESOTA PUBLIC SERVICE COMMISSION
Katherine E, sasseville
Roger L. Hanson
Richard J. Parish
Juanita.R. Satterlee
Lillian Warren Lazenberry
Chairperson
Commissioner
Commissioner
Commissioner
Commissioner
In the Matter of the Petition
by Continental Telephone Company
of Minnesota, Inc., St. Paul,
Minnesota for Authority to Change
Its Schedule of Telephone Rates
for Customers Within the State
of Minnesota. . .
DOCKET NO. P 407 / GR-79-500
MOTION FOR SEVERkNCE OF THE QUESTION
OF RATE DESIGN IN THIS PROCEEDING
AND CERTIFICATION OF THE ISSUE
TO THE MINNESOTA PUBLIC EERVICE COMMISSION
Now comes Petitioner, Continental Telephone Company of
Minnesota, Inc. (the "Company"), by its attorneys, and respect-
fully requests the Hearing Examiner to sever the question of
rate design in this proceeding and to certify this issue to
the Minnesota Public Service Commission (the "Commission")
pursuant to 9 MCAR ~ 2.217F and in support thereof states:
1. On February 14, '1979 the Commission in Docket No.
P 407 / GR-78-277 directed the Company to file.tariffs which
provided for a rate.differential between urban and rural
service of $1.00 per month for one party residential service
and $2.00 per month for one party business service (hereinafter
called the "zone differentials"). On May 11, 1979 the Company
filed its Petition for a General Rate Increase in this
proceeding, and the Company's proposed.rate design retained the
zone d~fferentials ordered by the. Commission on February 14.
2. For the reasons stated ~n the attached Ver£fied
Motion for an Order Concerning Rate Design, unless an Order
is issued eliminating the zone differentials for urban and
rural service, the Rural Electrification~dministrat±on will
not favorably act upon the Company's pending loan applications.
Unless sUch financing is obtained, as'outlined in the attached
Motion, the CompanY:and ail~':~{~-customers, whether'they are
located in rural or urban areas, w~ll suffer, and are.now
suffering, severe economic consequences..
~HEREFORE,-metitioner, conti'~en~al Telephone Company of
Minnesota, Inc., respectfully requests the 'Hearing Examiner to
sever the issue of rate design in the pending proceeding and
certify the issue to the Commission pursuan~ to 9 MCAR ~ 2.217F
and recommend the Commission adopt an order in substantially
the form attached to the Verified Motion for an Order conCerning
Rate Design.
DATED: October 25, 1979
OF COUNSEL:
Wayne W. Whalen
Stephe~ J. Mattson
MAYER, BROWN & PLATT
231 South LaSalle Street
Chicago, Illinois 60604
Respectfully submitted,
Charles M. R~x~oat, President
BEFORE THE MINNESOTA PUBLIC SERVICE COMMISSION
Katherine E. Sasseville Chairperson
Roger L. Hanson Commissioner
Richard J. Parish Commissioner
Juanita R. Satterlee Commissioner
Lillian Warren Lazenberry Commissioner
In the Matter 0f the Petition
by Continental Telephone Company
of Minnesota, Inc.,. St. Paul,
Minnesota for Authority to Change
its SchedUle of Telephone Rates
for Customers Within the State
of Minnesota.
VERIFIED MOTION FOR AN ORDER
CONCERNING R~TE DESIGN
Now comes Petitioner, Continental Telephone Company of
Minnesota, Inc. (the "Company"), by its attorneys, and respect-
fully requests this Commission to enter an Order Concerning
Rate Design and in support thereof states:
1. On February 14, 1999 this Commission in Docket
No. P 407 / GR-78-277 directed the Company to file tariffs
which provided for a rate differential between urban and rural
service of $1.00 per month for one party residential service
and $2.00 per month for one party business service (hereinafter
called the "zone differentials"). On May 11, 1979 the Company
filed its Petition for a General Rate Increase in this pro-
ceeding, and the Company's proposed rate design retained the
zone differentials ordered by the Commission on February 14.
2. On April 20,'1977 the Company filed a loan appli-
cation with the Rural Electrification Administration ("REA")
DOCKET NO. P 407 / GR-79-500
for a loan of $11,000,000 to finance a portion of. th~ Company's
1978 construction program which'involved the rebuilding and
upgrading of facilities .in 15 exchanges within Minnesota.
This loan application was designated as the "L Loan." On.'
March 16, 1978 the Company filed a loan' application for
$9,500,000 to finand~'a'p~ion of the Company's 1979 con-
struCtion pr~gram.~hiCh.lnv°lved t~e reb~'idin~'~'a~d ~rading
of facilities in 19 additional exchanges within Minnesota.
This loan 'application~was designated as the "M Loan." If
approved by the REA, it ~s expected~that such loans would
currently be made to the Company 'as a Rural Telephone Bank
loan at an interest cost of apProx£mately 8 percent per annum.
3. In order to f~nance portions of the Company's
1978 and 1979 construction programs, pending approval of the
L Loan and MLoan applications by the REA, the Company
entered into an interim financing agreement with the First
National Bank of St. Paul and the Chase Manhattan Bank.
The Banks have'agreed to lend the Company up to $24,000,000
at the prime interest rate together with a requirement of
15 percent compensating balances. The interim financing
agreement terminates on December 31, 1979. On. October 15, 1979
the Company had borrowed under, this interim agreement
$20,000,000. As of October 24, 1979 the effective annual
cost. of such interim financing was 17.65 percent.
4. On May 16, 1979 the Company was advised by an REA
letter that its L ~nd M Loan applications would not be.processed
-2-
because the tariffs applied for in this matter~Pr°vided for
zone differentials which, according to such letter, is contrary
to REA lending pOliCies. The REA letter is'attaChed hereto
as Exhibit A. The Company has met with, and corresponded
with, REA officials in an effort to obtain approvals of the
L and M Loan applications. A-cOpy'of 6ne such le~er to the
REA is attached hereto as Exhibi~'B. In an'effor~ ~o meet '
the REA's objeCtions, the Company filed a-revised prospective
tariff-in"this'procesding'-Whic~'elimina~ed the>One Party
zone differentials.
5. The REA, in a letter dated June 13, 1979',to the
Company, stated it would not process the Company's L and M
Loan applications until an Order was issued by this Commission
eliminating the zone differentials. A copy of this letter
is attached'as Exhibit C hereto. The REA also advised the
Cor~¢~ission in a lette~ dated September 21, 1979 of its position
concerning Such zone differentials.
6. The CompanY's bond indenture prohibits it from incurring
additional interim debt in any substantial amount'beyond that
currently provided for as described in paragraph 3 above. If
the Company is to proceed with its 1980 construction program,
and to reduce the very substantial costs of interim debt
(i.e., the effective 17.65 percent rate), it must obtain
approval from the REA fOr the L and M Loans or obtain long
term financing in the conventional securities market. Such
-3-
long term convent±onal f~nancing could not be obtalned for
less than 2-1/4 percent 'aboVe the REA rate.
7. The Company must retire the interim debt, by issuing
long term debt. The difference in interest expense between
long term conventional financing and the REA financing would
be at least $461,250 annually, and there would be.a resultant
decrease in toll revenue to the Company of approximately
$'244,866 annually, for a combined annual local service revenue
requirement-increase ~f approximate!y.$706,000--based upon
the necessary $20,500,000 in.financing. The foregoing amount
represents, an immediate increase in local service revenue
requirements per customer per year of approximately $9.00.
8. It is in the interests of the public, the Company
and the telephone users in Minnesota that REA financing be
obtained as-promptly as possible to retire the interim debt.
The 'necessary step for such financing to be approved by the
P~A ~s the elimination of the zone differentials.
9. Charles M. ~Rexroat, President of the Company, has
conferred with William P. Riley, REA Director--North Central
Area--Telephone, concerning this motion and Mr. Rexroat under-
stands that the REA will approve the L Loan and M Loan appli-
cations if this Commission enters an Order in substantially
the form requested by this Motion.
10. The Company respectfully requests that this
Commission issue an order in this proceeding approving a rate
design for the Company which provides for uniform one party
-4-
rates for bus~ness and residential service and whick elim±nates
the zoned one party rate differential currently contained in
the Company's effective tariffs to go ~nto effect at'the time
the Commission approves a final rate order in this matter
which should occur in the second quarter of 1980. ~"
WHEREFORE, Petitioner, Continental Telephone Company
of Minnesota, Inc., respectfully requests this Commission to
enter'an Order, in substantially the form attached hereto
as Appendix I, concer~ing rate design. ~'
Respectfully submitted, ·
CONTINENTAL TELEPHONE COMPANY
Dated: October 25, 1979
Charles M. R~xr~at, President
Of Counsel:
WAYNE W. WHALEN
STEPHEN J. MATTSON
MAYER, BROWN & PLATT
231 South LaSalle Street
Chicago, Illinois 60604
VERIFICATION
CHARLES M. REXROAT, having been duly sworn, on oath
deposes and says that he is President of Continental-Telephone
Company of Minnesota, Inc.; he has read the foregoing Verified
Motion for an Order Concerning Rate Design; and, the same
is true and correct.
Subscribed and Sworn To
before me thls~~ay
of October, 1979.
. Notary Public 0 '
My Commission Expires':'~~, ~j//~
-6-
SUBJECT:
UNITED STATES DEPARTMENT OF AGRICULTURE
RURAL. E:LIZCTRIFICATION ADMINIS, TRATION
Minnesota 526 CTC
2~r. Charles ~1. Rexroat, President
Continental Telephone CompanF
of Minnesota,-Znc.
6053 Hudson Road, Suite 300'
St. Paul, Minnesota 55119
~'e have recelved Hr. Ken Olson's letter o~ Ha~ 9,'1979, with the
enclosed copies of your organization's proposed Bonded Tariff and
Prospective Tariff.* We understand that these tariffs were filed
with the Hinnesota Public service Commission on ~ay 11, 1979. As
we *stated during our conversation ~n Mag 4, 1979, and fgain in.
our letter of May 9, 1979, the proposed tariffs are. in ~io!ation
of your company's contract with the Government and are unacceptable
to REA. .
While we recognize that it is the sole right of the Commission to
determine local service rates, and that the proposed rate design
is in conformance with the rates approved bg the Commission in
' Docket No. p 407 / GR-78-277, gout organization was a~-/are ok its
contractual obligation to request rates that exclude mileage or
'zone charges in the lowest grade of service in each exchange area.
· Paragraph 5 of the Continental Telephone System REA Polic~ State-
ment states in part, "...it is Continental'spolic~ to file tariffs
~n compliance with REA criteria and to make everg effort to-obtain
regulatory approval with that polic~." Znhis Intra-Compang
Communication regarding this polic~, dated June 23, 1977, a copg
of which was provided to us, ~.lr. Nicoletti stated in part, "...It
is not sufficient to propose tariffs in compl~ance~/ithREA require-
merits at pre-filipg conferences, and then to file in accordance
~'ith Commission preferences. In order to meet our commitment to
REA, we must formally file a rate structure consistent with REA
policy -- a uniform exchange-;~dW rate on .the lowest grade of
service offered."
Our letter of April 23,'.1979, stated ~at in seeking.a rate realigh-
ment to eliminate mileage and zone charges on the lowest grade of
service in each central office area, your' organization had met the
Mr. Charles M. Rexroat, President
2
contract requirements for further advances for approved .loan pur-
l~oses under the FG, H, and K loans. However, in requesting that
the Commission approve new rate schedules that include a $1 zone
charge on one-party residential and a $2 zone charge on one-party
business service in those exchanges that have been upgraded to all
one-party service, your company has once again violated Section 4.3
of the Consolidating Loan Contract. We will therefore be unable
· to consider further advances of funds under approved loans unless
gout tariffs are brought in compliance with our loan policy by
providi.ng equal benefits from REA financed facilities to rural
subscribers as those given urban subscribers. Also, we will not
process the' additional loan applications on hand or consider any
requests for interim construction authorization until gout organi-
zation has withdrawn the proposed tariffs or has filed a revised
proposal in conformance with the contract conditions.
Copies' of th'is letter are being sent to Messrs. Brooks, Weber,
Nicoletti, Esstman, 'Olson, Gilpatrick, and DeSanto. _
WILLIAM P.' RILEY ._ ~v
'Director ' / '
North Central Area - Telephone
T'- Continental Telephone
of Minnesota, Inc.
$~;~e 300- Hud~,m~ It.d Oll;ce Pm"k
St. Paul. M;n-e~o~a 55119
May 22, 1979
:-
Mr. William P. Riley
North Central Area - Telephone
United States Department of Agriculture
Rural Electrification Administration
Washington, D.C. 20250
Dear Mr. Riley:
We have received your letter dated May 16, 1979 to Continental Telephone
Company of Minnesota, Inc. stating the REA would not consider further
advances of funds under approved loans and would not process additional
loan applications because of the rate design contained in' the 'Company's
recent application to the Minnesota'Public Service Commission for increased
revenues. This application was.filed May 11, 1979. As you note in your
letter, the proposed tariffs did not propose to change the-provisions ih
the Company's existing tariffs which provide a $1.0D additional charge
· to one-party customers outside of the base rate area whereas two-party
or four-party rates are uniform throughout the exchanges for both Cl~.ss
"A" and "B" exchanges.
" We further understand the position you have taken regarding tariff
c~mpliance for flat-rate one-party service in an exchange v~hich is
designed and constructed on an all one-party basis although an alternate
two-party service offering is made to our customers. The alternate two-
party offering in a one-party exchange is mandated by the Minnesota
Public Service Commission's two-party service policy.
The Company used its diligent, best efforts to realign the urban/rural
rates commensurate with REA's loan tariff policies. We are commited to
those policies, and accordingly, the Company filed a rate realignment
application on February 15, 1978. This filing was undertaken absent any
change in total revenues to the Company iff an effort to isolate rate
design considerations unfettered by any change in revenues to the Company.
In reliance that such a proceeding would place the Company in compliance
'with REA loan. policies, the Company exerted every effort to establish
the need and desirability of a flat rate design in the State of Minnesota.
.'- This proceeding extended over a twelve (12) month period. To consider.
'the proposed realigned rates, the Commission held fourteen (14) state-
wide hearings, twelve (12) of which were held in the Company's exchange'
locations. In excess of $200,ODO was expended by the Company in Company
payroll costs, legal fees, Public Service Commission fees, etc. in
processing that application. 'The Company supported and.advocated REA's
rate design policies during the proceeding. Detailed explanations were
offered in the proceeding setting forth REA requirements for construction,
tariff compliance, service offerings, and loan qualifications. The
'2
· William P. Riley
l~ural Electrification Ad
t4ay 22, 1979
Page Two
istration
Commission issued its order on February 14, 1979, and the first bills
were sent to our .customers reflecting the new rate design on April 19,
1979. A copy of that order incorporating the Commission's findings has
been supplied to REA. The pertinent item of the order concerning REA
tariff compliance provided for a $1.00 rate differential between urban
and rural rates for one-party service. This differential had previously
been in excess of $5.00, representing a substantial realignment. We did
not, and do not now, support any differential.
At each of the public hearings, the Company justified the proposed
increase in urban rates by showing the additional cost of financing if
REA loan requirements were not fulfilled. The urban customers would
have Undoubtedly objected to .the changes in rates if they had not expected
a corresponding benefit. Furthermore, the customers that ~eceived the
greatest benefit were the rural one-party subscribers WhO lobtained nearly
eighty percent (80%) of the requested reduction in rates.
I must point out that the rate realignment process, consuming over
twelve (12} months, took place during a time when the Company experienced'
substantially inadequate returns on its investment. However, the Company
did forego an application for increased revenue during this period in an
'effbrt to fully achieve acceptable rate design criteria.. The February 14,
1979 PSC order is the definitive position of the Commission on the rate
design issue. Since the new rate structure would have only been in
effect approximately three {3) weeks when we filed for our rate increase,
it is clear that it~would be materially counterproductive to request
further consideration of the urban/rural differential for one-party
~ervice in the May 11 .filing when the issue had just been decided.
Additionally, the Company would have faced the risk of forfeiting its
.. right to place rates under bond,' at a time when it is experiencing
deficient earnings, in light of a recent challenge by the Minnesota
Participating Department Staff (PDS} to Northwestern Bell's recent rate
filing. In that instance, the PDS contended that in "back to back" rate
proceedings, the prior order should continue to be the benchmark for
determination of reasonableness of future rates, under bond until the
Commission determines otherwise. Although the Commission denied the
motion of the PDS in that particular proceeding, they went on to state
· 'that the Commission has the power to deny rates under bond ~.~hen the
application completely departs from reasonable standards established in
pribr decisions.
Your letter dated April 23, 1979 reviewing the Minnesota Public Service
· Commission's February 14, 1979 order states that REA requirements for
-furthdr advances under the approved loans "F," "G," "H" and "K" have
be. eh m.=t although this decision was reconsidered in your.May 16, 1979
letter. The Company has pending applications before REA including the
"L':-loan in the amount of $11,000,000 for 1978-79 construction and the
"l,l" loan in the amount of $9,500,000 for 1979-80 construction including
...upgrading for thirty-four (34) of the Company's exchanges throughout the.
· )l$~liam P. Riley
Rural Electrification
May 22, 1979
.Page Three
stration
State.' These loans are important to our Customers and the Company in
'meeting the service requirements throughout our certificated territory.
· The Company has carefully met all of the pre-loan requirements in construction
design, contract letting, interim financing Bpprov~l, ~nd other requirements
prescribed by REA's loan procedures.
The Company is clearly caught between State jurisdictional authority
over rate design and the loan requirements as established by the Federal
REA loan policies. Company management is of the opinion that all reasonable
steps have been taken to best accommodate the conflicting regulatory and
lending requirements. We further believe the loan applications are
meritorious and meet the intent of the REA loan program. In addition,
.the proposed REA construction loans are compatible with the "least
possible-cost" concept' promulgated by the Minnesota Public.Service
Con, hi s s i on.
In view of the foregoing, we urge that you reconsider your letter of
.May 16, 1979 and approve Contin6ntal Telephone Company of Minnesota,'
· Inc.'s application for the "L" and "M" construction loan funds and
release funds underpreviously approved loans.
Sincerely, ..
President
CMR:skb
UNITE. D STATES DEPARTMENT OF AGRIC~L'rURE
RURA~ £1.~CTRIFIC. ATION ADHINI~--TRATION
June 13, 1979
/'Jr. Charles M. Rexroat, President
· COntinental Telephone Company
of Minnesota, Inc. ..... '"';~
6053 Hudson Road, Suite 300
St. Paul, Minnesota 55119 :" - '"
Dear ~,jr. Rexroat:
We would like .to express our appreciation for the meeting with
/.Ir. Gilpatrick and 9ou on'/'Ja9 29, 1979, and our discussions of
the tariffs recen~lF filed bg ~our organization as well as the
company's ongoing efforts to improve service to its subsJribers
in Minnesota.
REA's objection to the company's existing rate design is that
we do not consider it to be in compliance with the company's
loan agreement or REA loan policy. REA's loan policy requiring
the elimination of mileage and zone charges in rural areas on
the lowest grade of service is long standing and insures
rural subscribers have equal access to all the benefits of REA'
financing, including quality service on an area coverage basis.
As we have stated previously, if any grade of service oth~r than
one-part~ is offered in an exchange which was rehabilitated with
REA loan funds for the purpose of providing all one-part~ service,
all grades of service should exclude mileage or zone charges.
We recognize, that the rate design in the proposed Bonded
Prospective Tariffs are in accordance with the Co?mission's Order
in Docket No. P 407 / GR-78-277. The Bonded Tariff, which we
understand will go into effect after filing without Commission
action complies with the standards established bg that Order.
However, we do not feel that these standards should restrict the
company from filing a Prospective Tariff in'compliancE with its
loan agreement, since this tariff would not be effective without-
further· Commission action. To illustrate, we cite the following
excerpts from the Order:
Mr. Charles M. Rexroat, President
'"The Commission does not' purport to offer the ultimate solu-
tion to the problems raised either by the'1976 case or by the
pre-existing situation. It recognizes that what it does'today
is only a step toward the ultimate realization of a consistent,
economically sound, uniform, fair rate design
"AlthoUgh the Commission has announced certain' principles
here, it recognizes that this is in a sense only an interim
decision and that ~]ese principles cannot be fullg considered
and their ramifications tested except within the context of a
general rate filing where it can scrutinize and evaluate ail
issues and their interdependent effect.
"The question of appropriate costs and costing methodol.ogies
has been raised. The Commission hopes in the future rate cases
to be able to move ~oward an appropriate methodologg which can
be consistently applied throughout the state, and for all companies.
Until such a fair and rational costing approach has been established
· .rate-making will continue' to require the exercise of seasoned judg-.
ment by a Commisslon which accepts t~.e importance of equitable
considerations. '- .
"The question of whether various grades df service should be
offered in any exchange is an important one. However, the Com-
mission does not consider the record sufficiently developed to
reach.a conclusion here. In view of the fact that the Company is
about to file for a rate increase~ the question can be deferred
to the rate increase proceedings."
While'we do not intend to interpret the above statemmnts, they do
not appear to prohibit the company from requesting reconsideration
by the Commission of a'proposal to eliminate m~!eage or zone charges
on the lowest grade of service in. conformance with P~A loan~.licy.
In your lette~ of ~ay 22, ~ou stated, "We did not, and do not now,
support any differential (between urban and ruralrates for one-
party service)." Your direct testimony in Docket No. P 407 / GR-79-500
appears to be in conflict ~th this statement. In ~our testimony,
Uou stated, "The Company seeks to retain the realigned rate struc-
ture by applying a uniform'increase to local service rates while
allo~ng the one dollar differential between urban and rural
subscribers for the same class of service to remain intact. The
Company believes the Commission recognized the.merits of the Rural
Electrification Administration (REA) loan program to the Company's
customers in establishing the one dollar differential for such urban~
rural service." Your request that the Co~-ds~ion maintain this zone
charge must be considered as intent to violate the company's
Consolidating~oan Contract ~th the Government.
F~r. Charles M. Rexroat., President 3
While REA has ~no desire to withhold the benefits of the REA Tele--
phone Loan Program from Continental's subscribers, we have no
alternative so long as your organization is in violation of its
contract. Our review of past events pertaining to ~our company,
including those described in your. most recent letter of May 22.,
1979, indicates that the company 'attempted to bring its tariff
into compliance with REA policy ,prior to the issuance' of the
Commission Order in Docket Uo. P 407 / GR-78-~77. However, we
will be unable to approve any requests for advances of funds
under existing loan contracts or requests for interim'financing.
of constrUction 'until the company has cancelled its request' for
approval of the present Prospective Tariff and has filed a
revised request with the Com~mission for rates that exclude mileage
or zone charges on the lowest grade of serVice, including alternate
grades'of service as noted 'in paragraph 2 above, in each centra~
office area. .Also, we will not consider approval of additional
loans until the company has received a Commission. order approving
a schedule of rates in accordance with REA's loan policies.
Copies of this letter are being sent to l,Iessrs. Gilpatrick, Oi'son,'
and Nicoletti.
'S~ncerel~,
North Central Area - Telephone
· APPENDIX
BEFORE THE MINNESOTA PUBLIC SERVICE COMMISSION
Kath~ine E. Sasseville ·
Roge~ L. Hanson
Richard J. Parish
Juanita R. Satterlee
Lillian Warren Lazanberry
In the Matter of the Petition
by Continental Telephone Company
of Minnesota, Inc., St.~ Paul,
Minnesota for Authority to Change
its Schedule of'Telephone Rates
for Customers Within the State
of Minnesota. :'
Chairperson
Commissioner
Commissioner
Commissioner
Commissioner
DOCKET·NO. P·407 /.GR-79-500
...... ' ~ -' ORDER -
Continental Telephone Company of Minnesota, Inc. therein-
after the "Company") filed with Mr. George Deretich, Hearing
Examiner from the State Office of Hearing Examiners (hereinafter
the "Hearing Examiner"), a Verified Motion for an Order Concerning
Rate Design on October 25, 1979 together with supporting exhibits.
On , 1979, the Hearing Examiner certified the
Motion to this Commission together with his recommendations.
'Now, after due deliberation and upon all the files· and records
herein, the Commission finds and concludes as follows:
1. On February 14, 1979 this Commission in Docket No.'
P 407 / GR-78-277 directed the Company to file tariffs which
provided for a rate differential between urban and rural service
of $1.00 per month for one party residential service and $2.00
per month for one party business service (hereinafter-called
the "zone differentials"). On May 11, 1979 the Company filed
its Petition for a General Rate Increase in this proceeding,
and the Company's proposed rate. design retained the zone
differentials ordered by the Commission on February 14.
2. On April 20, 1977 the Company filed a loan.appli-
cation with the Rural Electr~f±cation Administration ("REK")
for a loan of $11,000,000 to finance a portion of t~e Company's
1978 construction program. Tk~s loan application was designated
as the "L Loan." On March 16, 1978 the Company filed a loan
application for $9,500,000 to f±nance a portion of the Company's
1979 construction program. This loan application was designated
as the "M Loan." If approved by the REA, it is expected that
such loans would currently be made to the Company as a Rural
Telephone Bank loan at an interest~cost of approximately
8 percent per annum.
3. In order to finance portions of the Company's 1978
and 1979' construction programs, pending approval of the L Loan
and M Loan applications by the REA, the Company entered into an
interim financing agreement with the First National Bank of
St. Paul and the Chase Manhattan Bank. The Banks agreed to
lend the Company up to $24,000,000 at the prime interest rate
together with a requirement of 15 percent compensating balances.
The interim financing.agreement terminates on December 31, 1979.
On OCtober 15, 1979 the Company'had borrowed under this interim
agreement $20,000,000. As of October 24, 1979 the effective
a~nual cost of such ~nterim financing was 17.65 percent.
4. On May 16, ~979 the Company was advised by an REA
letter that its L a~d M Loan applications would not be processed
-2-
because the tariffs applied for in this matter provided for
zone differentials which according to suck 'letter, is contrary
to REA lending policies'. The Company filed a revised'Prospective
tariff in this proceeding which ·eliminated the one party zone
d~fferentials.
5. Th~ REA, .in a letter dated June 13, 1979, to the
Company, stated it would not process the Company's L and M
Loan applications until an Order was issued by this Commission
eliminating the zone differentials. The REA alSo adviSed the
Commission in a letter dated September 21, 197·9 of its~position
concerning such zone d±fferentials.
6. Charles M. Rexroat, President of the Company, has
stated that the Company's bond ±ndenture prohibits it' from
incurring additional interim debt in any substantial amount
beyond that currently provided.for as described in paragraph 3
above. To .reduce the costs of interim debt, the Company has
'stated in its motion that it must obtain approval from the REA
for the L and M Loans or obtain long term ,financing in the
conventional securities market. -Mr. Rexroat has stated that
such long term conventional financing could not.be obtained
for less than 2-1/4 percent above the REA rate.
7. It is in the interests of the public, the Company
and the telephone users in Minnesota that REA financing be
obtained as promptly as possible %0 retire the interim debt.
--3--
8. The Company's Motion requests that the issue of
whether there should be.zone differentials between urban and
rural service be severed from the other issues pending in
this. proceeding, recognizing that the severance of this ~ssue
will not affect in any manner the other pending issues~ in
order to further the Company's efforts to obtain approval
by the REA of the L Loan and M Loan applications.
WHEREFORE, it is hereby ORDERED as follows:
1} The issue of whether there should be zone
differentials between urban and rural service
~s severed from the other issues pending
before the Hearing Officer and the Commission
~ in this proceeding.
2} Within thirty days of a final Order in this
proceeding the Company shall' file with the
Commission proposed revised rates which
eliminate the zone differentials and which
provide'for'uniform one party rates for
business and residential service.
3) This'Order shall be effective immediately.
BY ORDER OF THE COMMISSION
/s'/
SERVICE DATE:'
, 1979
-4-
'CERTIFICATE OF' SE~VI'CE
I, .Marilyn B. Vogel, certify that on Octobe~ 25,
1979, I caused the foregoing "Verified Motion for an Order
Concerning Rate Design" and "Motion for Severance of the
Question of Rate Design in this Proceeding and Certification
of the Issue to the Minnesota Public Service Commission"
to be served on the following attorneys by either causing
same to be physically delivered to their offices or'depositing
same, postag~ prepaid, in the United States mail at St. Paul,
Minnesota:
Sue Halverson
Special Assistant Attorney General
Seventh Floor -American Center Building
160 East Kellogg Boulevard
St. Paul, Minnesota 55101
Rod Wilson.
Seventh Floor - American Center Building
160 East Kellogg Boulevard
St. Paul, Minnesota 55101
Eldon J. Spencer
Joan Volz
Office of Consumer Services
Metro Square Building
7th & Robert
St. Paul, Minnesota 55101
Curtis A. Pearson
City Attorney
City of Mound
1100 First National Bank Building
M~nneapol is.~/i~nesota
CLAYTON L. L£FEVERE
HERBERT P.
CURTIS A. PEARSON
J. DENNIS O'~3RIEN
JOHN E. DRAWZ
DAVID J. KENNEDY
JOBN B. DEAN
GLENN E. PURDUE
JAMES. D. LARSON
CHARLES L. LEFEVERE
HERBERT P. LEFLER
JEFFREY J. STRAND
JAMES P. O'MEARA
t4ARY J. BJORKLUND
THOMAS [~. CREIGHTON
· LAW OFFICES
1EfevEre, leflER, PEARSON, O'BRIEN & DRAWZ
IlOO FIRST NATIONAL BANK BUILDING
MINNEAPOLIS, MINNESOta 55402
October 31, 1979
TELEPHONE
(61~) 333-0543
Hr. Len Kopp, City Manager
City of Mound
5341 Maywood Road
Mound, ~4innesota 55364
Re:
Continental Telephone -
Severance Motion
Dear Len:
I am enclosing herewith a copy of the Examiner's
Certification and Recommendations to the Public Service
Commission regarding Continental Telephone's motion to
sever the question of rate design from the current rate
Proceeding. As I explained in my previous letter, this
basically goes to the rural exchanges and relates to the
question of financing for the company. Our cooperation
can reduce the interest being charged, on approximately
$25,000,000 from in excess of 17% to 8%. I have therefore
agreed and the Examiner has made his findings and sent
them on to the Public Service Commission.
tru.; y Youths,
Y
{Ii ..-'
C~ ~. Pearson
City At t~orney
CAP: lh
Enclos ute
. STATE OF MINNESOTA
OFFIC~E OF HEARING EXAMINERS
ROOM 300 - 1745 UNIVERSITY AVENUE
ST. PAUL, MINNESOTA 55104
(612} 2 96-'691 0
OCtober 29, 1979
~tro Randy Young, Director
Commission Support Division
Pdblic Service Commission
7th Floor, American Center Building
160 E. Kellogg BouleVard
St. Paul, Minnesota- 55101
RE: In the Matter of tJ~e Petition by Continental Telephone Company of
Minnesota, Inc., St. Paul, Minnesota for Authority to Change its
Schedule of Telephone Rates for Custc~ners within the State of Minne-
sota.
HE Docket No. PSC-79-146-GD
Agency File No. P 407/GR-79-500
Dear Mr. Young:
I enclose herewith and serve tkoon you by mail the Examiner's Certi-
fication and Recommendations to the Public service Commission of Contin-
ental's ~tion to Sever the Question of Rate Design from the Current Rate
Proceeding,
together with Attachments A through F.
Yours uery truly,
GEORGE DERETICH
Hearing Ex~niner
(612)296-8116
GD/eag
CCs: To All Parties of Record
AN EQUAL OPPORTUNITY EMPLOYER
PSC-79-146-GD
.~07/GR-79-500
STATE OF MINNESOTA
OFFICE OF HEARING EXAMINERS
FOR THE PUBLIC SERVICE C06~SSION
In the b~tter of the Petition by Continental
Telephone Company of Minnesota, Inc., St. Paul,
Minnesota for Authority to Change Its Schedule
of Telephone Rates for Customers Within the
State of Minnesota.
EXAMINER' S CERTIFICATION
AND P~CO~MENDATIONS TO
THE PUBLIC SERVICE COM-
MISSION OF CONTINENTAL'S
MOTION TO SEVER THE QUES-'
TION OF RATE DESIGN FR~M
THE CURRENT RATE PRO~.
CEEDING.
On October 25, 1979, Continental Telephone Company of Minnesota, Inc.,
filed with the undersigned Hearing Examiner a motion to sever the question of
rate design from the rate proceeding and to certify the issue to the Minnesota
~Pu~lic Service Con~nission. At the same time, and appended to the ~tion, the
Company also filed the following: A verified Motion to th~ Con~nission for an
Order concerning rate design, correspondence between Continental and the Rural
Electrification Administration (REA), and a proposed Order 'in the matter. The
Examiner, in his certification to the Commission, appends the company's docu-
ments as attachments as follows:
Attachment A -- Motion for Severance of Rate Design in this Proceed-
ing and Certification of the Issue to the Minnesota
Public Service Commission.
Attach~ent B - Vertified Motion for an Order Concerning Rate Design.
Attachment C - Letter from REA to Continental dated 5-16-79 regarding
Minnesota 526 CTC.
Attachment D - Letter from Continental to RFA dated 5-22-79 replying to REA's letter of 5-16-79.
Attachment E - Letter from REA to Continental dated 6-13-79.
Attachment F '- Order, as proposed by Continental, in this Motion and'
Certification.
The Company seeks to remove the zoned rate structure in the rate case in
order to qualify for REA funds. Such funding would result in a lower cost of
money to the Company, and therefore, to the Company's subscribers.
On October 25 and 26, 1979, the Examiner spoke with all the Intervenors
in the rate case and no one opposed the Company's Motion and proposal.
No subscriber of the Company would be adversely affected by the Company's
proposal. On the contrary, the subscribers would directly benefit by REA
financing~ as opposed to conventional financing.
The Examiner hereby certifies to the Commission the issue of severing the
question of rate design, as proposed by 'the Company, from the rate case. The
Examiner recommends to the Commission that it accept'the Company's proposal as
attached herein and that it issue an Order as requested by the Company.
The question, of zoned rates and REA funding' gives rise to a jurisdiction-
al question of who is to determine rate designs in Minnesota, the Public Ser-
vice Con~nission or the RFA. Continental's rate cass is n6t the appropriate
forum in which to determine this issue. To do so would be to do it at the
expense of Continental and its subscribers. The Examiner believes that the
Commission can accept Continental's Motion and proposal without relinquishing
tne issue of jurisdiction. The Examiner ~r.e.con~ends to the Commission that it
'do so by explicitly stating, in accepting the company's Motion and proposal,
that the Commission does not accede to the REA having peremptory jurisdiction
on Continental's rate design and that the commission agrees to Con~tinental's
motion and proposal as a matter of policy for the direct benefit of Continen-
tal's subscribers.
Dated this 29th day of October, 1979.
Hearing Examiner
-2-
DR. DALE FISHER
SUPERINTENDENT
INDEPENDENT SCHOOL DISTRICT NO. 277
MOUND ELEMENTARY SCHOOL
5630 LYNWOOD BOULEVARD
MOUND, MINNESOTA 55364
10-24-79
C. R. PETERSON. PRINCIPAL and
COORDINATOR EMPLOYEE/STUDENT
ASSISTANCE PROGRAM
To The Editor: '.
I thank and commend the Westonka School Board for taking a leadership role in
requesting the Third Stone Music Store to stop selling paraphernalia for illegal
drugs.
I have read the response of Third Stone's Mr. Swens'en both as a letter in the
Laker and as an article in the Sun. Mr. S~ensen does attempt to minimize the
effects of the paraphernalia he sells, attempts to divert our concern to alcohol
abuse, and does present only partial data as to why the school board is possibly
concerned.'
In street language, The Third Stone is and has been.calle~ the "Head Shop", mot
music store. A Head Shop is a store which chooses to sell that equipment/utHnsils
(paraphernalia) which will enhance/intensify the personal effects of illegal drugs.
The last time I visited The Third Stone I could easily observe paraphernalia
which is utilized for marijuana, angel dust, cocaine, and hashish. Mr. Swensen
minimized by concentrating upon cigarette papers and "smoking accessories".
He referred to the board's position as resulting from three arrests at a homecoming
football game. That may be a partial truth, but the fact that 19 (not just 3)
were apprehended; the fact that 120 drug using students and 150 families with
youth drug concerns were serviced last y~ar by Westonka Public Schools' chemical
dependency staff at a staff-time cost of $35,092; the fact that some families
in this district have had to spend up to $10,000 insurance and loaned money on
the rehabilitation of their drug using child, may have also inflhenced the board.
Mr. Swensen admits that it has been until recently the policy of Third Stone to
sell paraphernalia to high school aged sophomores, juniors, and seniors (16-18).
Now he sells to seniors (18). This does not stop the flow of paraphernalia into
the population of junior and senior high aged students. Mr. Swensen, has your
staff ever sold the chemical known as jock strap to junior high aged youngsters?
Mr. Swensen states that his clerks are investigated to make sure that they are not
drug pushers. It is unfortunate that his customers buying paraphernalia are not
also investigated.
Parents can view paraphernalia in two possible locations; the Third Stone if Mr.
Swensen does not volunteer to remove it,.or at the high school. Ask the principal
to show you what has been brought to school by drug using students.
I do agree with Mr. Swensen that drug alcohol is presently the most abused drug.
Pot is closing the gap, is in number two spot, and perhaps the 20% of sales record
stated by Mr. Swensen can be considered somewhat responsible for that.
MOUND ELEMENTARY SCHOOL: TELEPHONE 812-472-5263
Mr. Swensen, there are music stores in the metropolitan area which have chosen
to not become head shops. They are making it financially and have not had to
lay off their employees. I buy my records from such shops becadse they are not
head shbps.
Editor, as a public service, I do request that you publish with this letter the
enclosed article,"Pot Is Not As "Safe" As Alc°hol~ I believe that the public
is already aware that abuse of alcohol, cocaine, hashish, and angel dust can'
kill.
Mr. Swensen, I do encourage you to support your community and its youth by
voluntarily removing your inventory of paraphernalia. Perhaps this community
will show its gratitude to you by making their non-paraphernalia purchases at
the Third Stone.
Sinc ere ly ,~
Chuck Peterson, Employee/Student Assistance Coordinator - District 277
"POT" IS NOT AS "SAFE" AS ALCOHOL, ..
In defending marijuana, pot smokers often equate it with alcohol. The effects
ar~~. similar, runs the oft-heard rationale, so marijuana must be no more harmful than
alcohol.
BUT IT'S JUST ~OT SO, according to Gabriel Nahas, an internationally recognized
marijuana researcher. Nahas is an anesthesiology professor at Columbia UJiversity's
medical school. Speaking at the psychiatry department at the University of :4innesota,
Nahas said the ~rognosis for p~t's..s~fe~ty is looking very ~oor.
THE CI{EMICAL DIFFERENCES between marijuana and alcohol are significant, Nahas
declared.
WHEREAS ALCOHOL IS ONE simple chemical, marijuana is a mix of more than 120.
Its euphoric effect is produced primarily by the cannabinoid Delta 9-THC, one of at
least four psychoactive ingredients found in pot.
A SECOND MAJOR CHEMICAL difference, which profoundly effects 'the body's response
to pot and alcohol, is solubility. Alcohol is water soluble and is quickly dismantled
by the body's machinery to be either synthesized into fatty acids or eliminated
through the kidneys.
THC, ON THE OTHER HAND, is fat soluble. Consequently, it is absorbed and stored
in bo~¥ tissues. "It is distributed to all body tissue, targeting those organs
replete with fatty membranes, where it is held and slowly released," Nahas said.
IN FACT, studies have shown that it takes 30 days for the body to eliminate
the' THC contained in a single marijuana cigarette -- a "joint" -- although 80 per
cent is eliminated in the first five days, he said.
THE MOST SIGNIFICANT difference between alcohol and marijuana is the effect
they have on the body, or more specifically, in what is known about their effects
on the body. "Whereas the effects of alcohol are well known," Nahas said, "the
effects of pot are not clearly established. You just don't know." Using pot is
"a little like playing Russian Roulette," he added.
THE PSYCHOACTIVE COMPONENT in marijuana can have a profound effect on cell
machinery: it can inhibit cell proliferation and effect synthesis of DNA, the
genetic blueprint in all cells.
NAHAS SAID HE HAS confidence in laboratory studies that have identified the
lungs, brain and reproductive systems as. targets for THC.
'THERE IS NO QUESTION that marijuana is destructive in lung membranes," Nahas
said. '
IN A STUDY AT THE Mason Research Institute in Massachusetts, rats exposed for
three months to the equivalent of one to six joints daily showed significant
lung tissue breakdown and the blockage of some air passages with tissue debris.
FURTHERMORE, marijuana's power to cause lung C~ncer is. known to ~e much greater
than that of tobacco, Nahas said.
SO~.~E OF THE MORE recent marijuana studies concern its effect on the brain.
Researchers have found that T~IC localizes in the limbic system, a ~art of the brain
that helps control emotional behavior and is associated with co;~.~lex memorv function.
STUDIES ON MONKEYS chronically exposed to marijuana found abnormal ~attern~. .f
bral~ waves in this area, and the abnormalities .persisted after fouc months of
abstinence, Nahas said.
I:~ ADDITION, the THC in one "joint" alters the action of the pituita~! gland,
which controls growth hormones," he said.
A UNIVERSITY OF California study found that offspring of female monkeys that
had been given one to three strong Joints daily during pregnancy often displayed
hypertension and an inabil, it¥ to concentrate.
THE MOST INSIDIOUS effects of marijuana, however, may be ~hose that involve .the
~e~roductive organs in both men and women.
NAHAS DESCRIBED a study he was involved with at Columbia University in which
16 young male chronic pot smokers were recruited and put in the hospital for three
months. During the first and third months, they had no marijuana. But during the
second month, they were given all the carefully measured joints they wanted, and
they smoked 5 to 20 joints a day. At the end of their stay, sperm'analyses showed
a marked decrease in sperm count and sp~rmmobility and a sur~risi.~~ number of in-
fertile sperm.
RESEARCH OF monkeys shows various effects of THC on the female reproductive
system. One study showed that the equivalent of one joint will diminish for several
hours production of two basic hormones that control the functions of the ovaries.
Another study showed that daily injection of THC can d~.srupt ovulation.
THE UNIVERSITY OF California study showed that chronic exposure of female monkeys
to marijuana dramatically increased the incidence of stillbirths and miscarriages.
west hennep? community mental 'aealth center, inc.'
Formerly Lake Minn~t0nka Mental'Health Center, Inc.' 955-8411
MAIN OFFICE
14500 minnetonka boulevard
minnetonka, minn. 55343
MOUND
5517 auditors road
mound, minn. 553{:)4
WAY 12 HALFWAY HOUSE
645 east wayzata bo~evard
October 15, 1~7~ .t,.d~'
Dear Leonard Kopp
As part of its commitment toward the provision of a comprehensive
range of mental health care services, West Hennepin Community
Mental. Health Center has established an Aftercare Program for
emotionally disabled residents of the West Hennepin area.
~4
The Aftercare Program is designed to serve those individuals be-
tween the ages of 17 and 65, who have a history of recurrent psy-
chiatric hospitalizations but who are now attempting to function
within the. community. The professional staff assigned to this
program include: a licensed consulting psychologist, a psychiatric
social worker, a staff psychologist, a consulting psychiatrist, and
two social work interns from the graduate program at the University
of Minnesota.
iAt present, the'Aftercare Program is providing individual sUpportive
therapy, a medication clinic, and a "One to One" visitation project.
'The "One to. One" project is staffed by carefully screened and
trained volunteers who serve as friendly visitors and adjuncts to
therapy, and who are available to meet with clients of the Aftercare
Program within their own residences. A recreational/limited day
activity component will be added to the Aftercare Program as soon
as a suitable site within West Hennepin County'is located.
I have written to you at this time not only to inform you about
our Aftercare Program, but to encourage you to participate actively
in referring to us individuals whom you feel would benefit from
the services I have briefly described. Also included is a brochure
describing the other services and programs of West Hennepin Community
Mental Health Center.
Should.you have further questions regarding the Aftercare Brogram,
please feel free to contact Joel Meresman, Ph.D., Aftercare Program
Coordinator, at the MAIN OFFICE number above. Thank you for your
attention and cooperation.
Sincerely,
da~es B. Stoebner, ACSW
Execu.tive Director
10/~5/79
providing positive human services for rvestern hennepin county
west hennepin community mental health center inc.
MAIN OFFICE
14500 minnetonka boulevard
minnetonka, minn. 55343
MOUND OFFICE WAY 12 HALFWAY HOUSE
5517 auditors road 645 east wayzata boulevard
mound, minn. 55364 wayzata, minn. 55391
SERVICES
Evaluation & Assessment
Oupatient Counseling
'Individual.~ Therapy
Marital Therapy
Family Therapy
Group Therapy ................. ..Women, Men, Adolescents, Young Adults,
Mixed Adult, Battering Men;
Aging .......................... A special project in the Westonka area
provided in conjunction with Suburban
Community Services;
Aftercare ; ..................... For persons with chronic problems of
mental illness; volunteers assist in
providing services; linked with
Hennepin County Community Support
Project;
Walk In Service ................ Persons ~eeking immediate service are
seenby staff who are available
every working day Monday-Friday
8:00 a.m. to 6:00 p.m.
Halfway House .................... Residential services for young adults
(ages 16-25) with chemical dependency
problems;
Consultation ..................... Primary focus is to provide mental
health consultation to other service
providers regarding their clients/
patients.
STAFF
Consulting Psychiatrists
Licensed Consulting Psychologists
Psychiatric Social Workers
Chemical Dependency Counselors
FEES
Sliding fees based on ability to pay; the Center receives funds from
Hennepin County to pay the costs of services for persons who are un-
able to pay all or a part of the fees; Private Insurance and Medical
Assistance are billed.
REFERRALS ~
935-8411 Mental Health
473-7371 Chemical Dependency (Halfway House) ~ ~O
Direct further questions to the Director at the MAIN OFFICE address & phone.
providing positive human services for western hennevin countv
WESTONKA PUBLIC SCHOOLS
MOUND, MINNESOTA
October 18, 1979
Charles Johnson, Chief
MOUND POLICE DEPARTMENT
Mound, Minnesota 55364
Dear Chuck,
I want you to know how appreciative we are for the
extraordinary coverage you provided.at recent school football
games, notably the Homecoming Game of October 5, and the next
home game on October 17. Your personnel performed in the
finest traditions of your department, and won the support
of the Westonka School Board and many citizens who attended
those games. School personnel have shown their readiness to
cooperate with the 'Police Department, and this bodes well for
the future of law and ~rder in the Westonka area.
Si ncerely,
Dale E. Fisher
SUPERINTENDENT
cc: Mound City Council
Westonka School Board
Charles Peterson
MCCOMBS-KNUTSON ASSOCIATEg, INC.
CONSULTING ENGINEERS M LAND SURVEYORS ~'$1TE PLANNERS
Reply To:
12800 Industrial Park Boulevard
Plymouth, Minnesota 55441
(612) 559-3700
October 19, 1979
Mr. Leonard~':Kopp
City Manager
City of Mound
5341 Maywood Road
Mound, MN 55364
Subject:
Dear Mr. Kopp:
City of Mound
Pflug Parking
We have inspected the parking and fence at Mr. Pflug's
building on Shoreline Boulevard. All of the work has been
satisfactorily completed.
The fence is not located where shown on the plan. Mr.
Pflug stated that he had Council approval for the revised
location.
LS:sj
Very truly yours,
McCOMBS-KNUTSON ASSOCIATES,~ INC.
Lyle Swanson, P.E.
-Minneapolis - Hutchinson - Alexandria - Granite Falls
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