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Home My WebLink AboutCCP 01-03-1995 T I . , f\l.-' , I. REVISED AGENDA I ARDEN HILLS CITY COUNCIL MEETING ARDEN HILLS PUBLIC WORKS BUILDING LUNCHROOM I TUESDAY, JANUARY 3,1995,5:00 P.M. 5:00 PM 1. Call to order/roll call I 5:00 PM 2. Agenda adoption I 5:00 PM , Oath of Office .>. Dennis Probst, Mayor Dale Hicks, Councilmember I Susan Keim. Councilmember Terrance R. Post, Treasurer I Brian Fritsinger, Deputy Clerk 5:00 PM 4. Consent Calendar a. Adopt Resolution 95-01, Designating Depositories and Corporate Authorization. I b. . Adopt Resolution 95-02, Designating additional Depositories for investment purposes. I' c. Adopt Resolution 95-03, Designating Brokerage Finns for investment in permitted instruments. d. Adopt Resolution 95-04, Transfer of funds by Telephonic instructions. I e. Designation of official newspaper for 1995. f. Schedule special meeting for Saturday, January 7, 1995. I 5 :05 PM 5. Public comments 5:10PM 6. Unfinished and New Business. I a. Approval of City appointments. b. Appointment of Acting Mayor for 1995. c. Appointment of Council Committee Liaisons for 1995. I d. Approval of Committee appointments and appointment of chairpersons. 5:20 PM 7. Council comments I 5:30 PM 8. Adjourn I The above times may vary depending upon length of issue discussion. I I. I -- I . , . I. I. cm OF ARDEN .Im..LS I MEMJRl'lNDtJM I DATE: December 29, 1994 TO: Mayor & Cclmcil I ~@ Terrance R. Post, Acting City l\dmini.strator I SUBJECT : Aclministrat-n,.. Cc:mnents 1/3/95 Council Meetina I Consent Calendar l. Items "a" through "d" are treasury relationships requiring I spocific annual COtmcil authorization. 2. See the attac..~ 12/23/94 metro frcm the Acting City I Administrator c=erning a reccrnnendation to designate the Focus News as the official city newspaper for 1995. I~ 3. COilllcil should schedule a special council meeting on January 7, 1995 for the pupose of conducting interviews with Clerk/Administrator candidates. I Unfinished and New Business I A. Recc:mnendations for City A\lCQint:ments I l. Professional Consultants Engineer-Maier Stewart & Associates (MSA). 1995 fees a. I were quoted to increase 2.5%--3.0%- with the ITBXimum hourly billing rerraining und13Ilged at $75.00. I b. Attorney-Peterson, FraIn & Bergrran, Jerane Filla. 1995 fees were quoted to increse by the following percentages in the following service categories: Civil litigation-a I new category ($110); other civil 5.6% (to $95.00/hour); prosecution 0% (to $70.00/hour) and paralegal 0% (to $50.00/hour) . I c. Exter-oal Auditor-Although not displeased with the level I. of sevice provided by the Abdo Abdo & Eick Firm, staff I - '" I .J .: :~cxrmends that this contracted service be reviewed .1 every five years in ~ie form of a request for proposal (RFP) ccxrmencing wi':h me 1995 year end audit I examir.ation . d. planr.er-Sanders, Wacker, Weln:mm, Bergly. 1995 fees I were quoted to increase 0% to a rraximum hourly billing rate of $65.00. I Lal:or Relations- The City's contract agreement with the e. bargaining unit will expire on December 31, 1995. While I the need to ccxrmence preliminary negotiations in 1995 will be present, the new clerk/administrator may wish input into this appointment. I f. Insurance Agent-11Je City's agent of record has been William Hite of the St. Paul Ajency for many years. I Similar to the ccmrents concenring the external auditor in point "c" aJ:ove, staff recomrends that this relationship be reviewed every five years in the form of I a request for proposal (RFP) ccxrmencing with insurance coverage for the 1996 fiscal year. -I g. Financial Consultant-Although the ongoing need for this category of consulting service in not present, staff I reccxrmends the =tinued terrp:>rary use of Ehlers and Ass=iates, Inc. when such finacial services are required. I 2. Protective Inspections I a. 'leating-Eugene '?3.koy, 30% of permit fees. b. Electrical-tJ'~..:ro Inspection Serv::.ces, Gunnar Pettersen, I BC"; of perm.:.~ fees. c. Building official (including landscaping)-David Kriesel Inc., $25.00 per hour to a rraximum of 50% of building I permit revenue. d. '?lumbing, Water, Sewer, and Sign Permits-David Kriesel, ~c., $25.00 i:,>r hour to a maximum of 50% of plumbing, I :er and sign ~>-:':mit rever~'.le. e. C=" Enforcerrent-,:o.id Kriesel, Inc., $25.00 per hour. I f. Health Offic',r-Ramsey County, no cost pass tbrough frcm the county. .1 I . . .. B. ADooi nMnFont of Act.UJa Mavor . Mayor Probst will appoint Councilrrember Malone and seek ratification by the council. . c. ADoointment of Council Ccmnittee Liaisons . Ccmnittee/rnrnnissian Counci1mel:Iber Econcmic Development Camrittee Beverly Apilkowski . Finance Committee Paul Malone HUll\3!l Rights Camrittee Susan Keirn (Mission Staterrent Review) . Parks & Recreation Susan Keirn Planning Commission Dale Hicks Public Works/Safety Committee Dale Hicks . Other Aaencies . LJVFD Pension Board Paul Malone Ramsey Cty League (RCLLG) Beved y Apilkowski .- Suburban Cable Commission Beved y Apilkowski NW Youth & Family Services Beved y Apilkowski TCAAP Reutilization Committee I::ennis Probst; . Brian Fritsinger-alt . D. Ccmnittee ADoointments/ADoointment of Chai:roersans The IT\3.jority of committee members have expressed interest in . J:eing reappointed to the various ccxrmittees. In addition to these individuals, the following residents have expressed interest in either new or different committee assignments. . Econcmic Developnent Committee-Ray McGraw . Finance Committee-Mark Labine, Tan Mulcahy Park & Recreation Camrittee-Maureene Bcdene, LDuis Speggen Planning Camrission-J?ave Sand . Public Works/Safety Committee-Jolm Tholen The committees have traditionally chosen their awn . chairpersons. Mayor Probst desires to exercise his perogati ve and name the following committee chairs: .. Economic Developnent-Robb Carlson Jr. . -------- , . Finance Committee-Chuck Mertensotto _. Parks 1< Recreation Committee-Megan Ricke . Planning Commission-Steven Erickson Public Works/Safety Committee-Dick Roessler . Mayor Probst will also urge the ccmnittees to name a Vice- chair and Recorder to determine future ccmnittee leadership assignrrents. . The rrayor has also indicated that it 1.>KJUl.d J:e his intent not to appoint a Hunan Rights Committee at this tirre as in prior years but to charge cOllilcilmemter Keirn and interested Human Rights Corrmittee . rreml::ers from previous years to examine the mission of the corrmittee. . . . -. . . . . . . . -. . . .. CITY OF ARDEN HILLS . RAMSEY COUNTY RESOLUTION NO. 95-01 . RESOLUTION DESIGNATING DEPOSITORIES AND CORPORATION AUTHORIZATION . THIS IS TO CERTIFY That at a meeting of the City Council of Arden Hills duly called and . held January 3, 1995 the following resolution was adopted: RESOLVED, that the First Bank Sl. Paul, N.A. shall be the official depository for all funds of . the City of Arden Hills for the calendar year 1995; and . BE IT FURTHER RESOLVED, that the City Treasurer shall from time to time, ascertain that adequate security as required by the laws of the State of Minnesota, is furnished by such depository to protect the City's deposited funds against financial loss; and . BE IT FURTHER RESOLVED, that checks of this corporation drawn on First Bank St. Paul, N.A., hereinafter called the Bank, shall be signed by three of the following officers: .- Dennis Probst or Paul Malone Mayor Acting Mayor . Brian Fritsinger or Terrance R. Post Deputy Clerk Treasurer . BE IT FURTHER RESOLVED, that the Deputy Clerk is authorized to use a signature stamp at . such time as it becomes necessary for Mayor Dennis Probst or Terrance R. Post, Treasurer. BE IT FURTHER RESOLVED, that the said bank is hereby authorized and directed to honor . and pay any checks so drawn as above set forth, whether or not such checks be payable to the order of the foregoing persons either in this individual or official capacity or deposited to this individual credit, and whether or not such signatures are followed by the title or office of the . person slgmng. . . .- . . PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS .. THIS 3RD DAY OF JANUARY', 1994. . DENNIS PROBST, MAYOR . ATTEST: . TERRANCE R. POST, ACTING CITY ADMINISTRATOR . . . . -. . . . . . . . -. . I I. CITY OF ARDEN HILLS RAMSEY COUNTY I RESOLUTION NO. 95-02 I RESOLUTION DESIGNATING ADDITIONAL MONEY MARKET DEPOSITORIES FOR INVESTMENT PURPOSES I WHEREAS, Resolution No. 95-01 designates the First Bank St. Paul, N.A. as the official I depository for funds of the City of Arden Hills for calendar year 1995; and WHEREAS, it is desirable to invest City funds at the highest available interest rate; I NOW THEREFORE, BE IT RESOLVED that effective this date, the following money market I funds are designated additional depositories for the sole purpose of investing cash or cash equivalent funds of the City of Arden Hills: I Minnesota Municipal Liquid Asset Fund (4M Fund) Painewebber Money Fund Piper Jatfray Money Market Fund Ie Norwest Bank Minnesota N.A., Prime Value U.S. Government Fund Smith Barney Money Funds Inc Cash Portfolio I BE IT FURTHER RESOLVED, that the City Treasurer is authorized to take whatever actions are necessary to make investments in the aforesaid money market funds and to ascertain that adequate security, as required by the laws of the State of Minnesota, is furnished by such money I market funds to protect the City's deposited funds against tinancialloss. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS I THIS 3RD DAY OF JANUARY, 1995. I DENNIS PROBST, MAYOR I ATTEST: I TERRANCE R. POST, ACTING CITY ADMfNISTRATOR I Ie I I I. CITY OF ARDEN HILLS RAMSEY COUNTY I RESOLUTION NO. 95-03 I RESOLUTION DESIGNATING BROKERAGE FIRMS FOR INVESTMENT IN FINANCIAL INSTRUMENTS AUTHORIZED BY STATE STATUTE CONSISTENT WITH THE CITY INVESTMENT POLICY I WHEREAS, Resolution No. 95-02 designates several Money Market Funds depositories for the I sole purpose of investing funds of the City of Arden Hills; and WHEREAS, it is desirable to invest City funds at the highest available interest rate; I NOW THEREFORE, BE IT RESOLVED that effective this date, the following brokerage . firms are designated for the sole purpose of investing City funds in Federal government instruments or in banks or savings and loan certificates of deposits, or other authorized investments allowed by State statutes and consistent with the formal investment policy of the . City: Raymond James & Associates Inc. Minnesota Municipal Money Market Fund (4M Fund) .e Norwest Investment Services, Inc. Paine Webber, Inc. Piper Jaffray, Inc. . Smith Barney BE IT FURTHER RESOLVED, that the City Treasurer is authorized to take whatever actions . are necessary to make investments at the aforesaid brokerage firms and to ascertain that adequate security, as required by the laws of the State of Minnesota, is furnished by the issuing bank or savings and loan to protect the City's deposited funds against financial loss; and . BE IT FURTHER RESOLVED, that no collateral be required for Federal government . instruments since these investments are backed by the full faith and credit of the United States government. . PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 3RD DAY OF JANUARY, 1995. I DENNIS PROBST, MAYOR . ATTEST: .- TERRANCE R. POST, ACTING CITY ADMfNISTRATOR . . .. CITY OF ARDEN HILLS RAMSEY COUNTY . RESOLUTION NO. 95-04 . RESOLUTION FOR TRANSFER OF FUNDS BY TELEPHONIC INSTRUCTIONS . WHEREAS, the First Bank St. Paul, N.A. is the depository in which funds of the City of Arden Hills may be deposited, and a corporate resolution with respect thereto is presently in effect authorizing the deposit and withdrawal of funds; and . WHEREAS, the City of Arden Hills desires to add to and supplement said corporate resolution with the following resolution: . RESOLVED, . 1. Anyone of the following persons: . Terrance R. Post, Treasurer Brian Fritsinger, Deputy Clerk .- is authorized on behalf of this corporation to give instructions by telephone to the FIRST BANK ST PAUL, N.A., to transfer funds on deposit with the bank: . a. to other accounts of this corporation with the bank; or b. to other accounts of this corporation with other banks. . 2. The bank is authorized to act on such telephonic instructions received by it from anyone . who represents himself to be any of the above-named persons whether or not his voice resembles the voice of such person. ~ The bank is authorized in its sole discretion to refuse to honor telephone instructions and . ~. to insist upon written instructions signed by anyone of the persons named in paragraph 1 of this resolution. . PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN fiLLS THIS 3RD DAY OF JANUARY, 1995. . DENNIS PROBST, MAYOR . ATTEST: .- TERRANCE R. POST, ACTING CITY ADMINISTRATOR '. . . .. CITY OF ARDEN HILLS . MEM:>RANDT.lM . DATE: December 21, 1994 - . TO: Mayor & Council rnGf: @ Terrance Post, Acting City Administrator . SUBJECT : Official City Newscaoer . TWo l=al newspapers have indicated an interest in being narred the City's official newspaper for 1995. Bid quotes for one inch, one colurrm width, legal publication services (minutes, advertiserrent for . bids, other notices) are as follows: One-time Subsequent . Publication Insertions 1. Focus News $5.94 $3.30 .- 2. Lillie Suburban (Shoreview/Arden Hills . Bulletin) $5.20 $3.49 . Thus far in 1994, the City has expended $1172 with the Focus News for appraxirrately 209 colurrm inches of legal notices publication. The 1994 rates from this vendor we...re $5.61 per colLUm inch. The 1995 Focus . quote represents a 5. 9% price increase over 1994 rates. This would equate to an approxirrate $160 higher cost then the Lillie Suburban quote. . Other factors influencing this decision include ac=acy of published . notice information, distribution availability to all residents, coverage of cOilllcil meeting activity and general coverage of other items of corrmunity interest. . RecO!lTl\Pndation . Staff recommends the reaptXlintrrent of the Focus News as the official city newspaper for 1995. If council agrees with this reccmrendation .- they should consider approving the item under consent at the January 3, 1995 council meeting. . . . .. CITY OF ARDEN HILLS 1995 APPOINTMENTS Acting Mayor Paul Malone . Treasurer Terrance R. Post City Attorney Petterson, Fram & Bergman . Jerry Filla Prosecuting Attorney Petterson, Fram & Bergman Jerry Filla . Consulting Engineer Maier Stewart & Assoc. Terry Maurer Planning Consultant Sanders, Wacker, Wehrman, & . Bergly - John Bergly Health Officer Ramsey County Code Enforcement Officer Dave Kriesel . Heating Inspector Gene Pakoy Electrical Inspector Metropolitan Inspections . Gunnar Pettersen Landscape Inspector Dave Kriesel Plumbing Inspector Dave Kriesel . Official Newspaper Focus News Recording Secretary Time Saver Off Site Secretarial Ruth McLaurin .. COMMITTEE LIAISON Economic Development Committee Beverly Aplikowski . Planning Commission Dale Hicks Public Safety/Works Committee Dale Hicks Parks & Recreation Committee Susan Keim . Finance Committee Paul Malone Human Rights Committee Susan Keim LNFD Pension Board Paul Malone . Newsletter Open . Suburban Cable Commission Bev Aplikowski (Alt) Representative . RCS Contract Cities City Administrator (Open) RCLLG Bev Aplikowski Suburban Cable Commission Dave Sand . NW Youth and Family Services Bev Aplikowski TCAAP Reutilization Committee Dennis Probst Brian Fritsinger (Alt) . .- . . flLt- .' CITY OF ARDEN HILLS .- MEMORANDUM . DATE: December 30,1994 . TO: Mayor & Council FROM: Terrance R. Post,ActingCity Administrator . SUBJECT: Non-Aoenda Packet Items for Week-Endinq 12/30/94 . 1. On 12/29/94 a check in the amount of $19,600 was received from the Augusta Building Corporation in satisfaction of park dedication requirements at the Cottage Villas. . 2. Highway 96 Task Force information from representative Dan Winkel is enclosed for council information and review. . 3. Recent Piper Institional Government Income Portfolio data from a 11/30/94 portfolio review and a 12/9/94 prospectus are enclosed. 1- 4. League of Minnesota Cities" Action Agenda" material is enclosed. . 5. Vacancy information from the Association of Metropolitan Municipalities (AMM) and the Metropolitan Council is enclosed. . 6. A new entry key for city facilities is enclosed in your 1994 W-2 statement envelope. . . . . . .' . - .. - I I ("') ~ aJ 0 lO ~ 0 ; I 0 ~ -..:- 0 ] . """ O' , :c ~ 0 I ill m '" m = > .- u..J . a:> c:::l cr- I "'" - ill eN ...0: ... ...... '" '" ~. () c,:) <=> '" '" \..Ll S '" '" W Q '" \d I a: '" '" oo '" 'W oo '" ... '" 0 "'''' 0 '"' z I "z - 0-. .. - ..... ~ ..... "- w"'.. 0 CO []'" ..z_ 0 N oC(O~ "0.. ..... <1'1 ..",~ "" N c:Q - .. I "'~cD - w ... " -' . c:Q ..;:: '" 0", Ct: 0 "'00 " - ..", I ::J Z .. ::> = >< H '.: I U1 <1'1 " <.ll z <1'1 < c:Q U1 0 I . z ::> 0 0 c:Q i= :I: - < ,... []'" a: z 0 I 0 '" (f) '.: .., CI. '" .., a: ,... ..... . 0 '" = Z = <1'1 (J I H C c:Q ~ z (I) L11 Zz '" " oJ -0 '" '- 0- oo '" 0 ...l'!! '" '" < 0 -> ;;: '" I :J;; <.. ~ ~! lCz '" '" 0 - '" c(2~~ ole >> ~..- ..., (J) ~ )( <~ I ~a::Ot; ..... /..Y' e"l-aJ::J U '" .'" :J Z 0 ::I c(8~< I ~ ~a: I ~dl!5 I I- I . - Trunk Highway 96 Task Force December 1, 1994 - Draft Vork Program/Schedule - - - 1) Introduction to Task Force -- Purpose/Process December 1994 . Overview of Considerations for Concept Plan 1 2) Review of Existing Information/Conditions January 1995 Identify Issues/Deficiencies 1 Consultant Selection 3) Discuss Roadway Design Alternatives (General) February 1995 1 4) Discuss Signals/Geometrics March 1995 1 5) Discuss Sidewalk Path Alternatives/Issues April 1995 1- 6) Discuss Stormwater and Utilities May 1995 1 7) Right of Vay, Landscaping, Environmental/Social Impacts June 1995 1 8) Technical Summary / Concept Report Outline July 1995 1 9) Concept Report Development August 1995 1 10) Concept Report Draft September 1995 1 11) Submit Concept Report to Municipalities October 1995 12) Finalize Concept Re~ort November 1995 1 13) Municipal Approval of Final Report December 1995 1 I' 1 - - - i. 1._ Trunk Highway 96 Task Force December 1, 1994 . Fundamental Considerations/Guidelines . 1) Designated "A-Minor" Arterial . 2) Multimodal Facility . 3) Design shall: Accomodate and projected traffic volumes (20 Year) (no 0 c.urrent -- . traffic calming) 0 Provide for functional corridor continuity . 0 Meet State Aid Standards 0 Provide for design speeds which meet or exceed posted speeds -- changes .- subject to traffic studies and state determination 0 Provide for truck and commercial traffic . 0 Address historical and environmental/social requirements 0 Provide for adequate snow storage and handling ,. 0 Provide turn lane or median design elements for all access . 0 Not unduly increase operation and maintenance costs (ie. landscaping) 4) Improvements must support highway and landuse compatibility -- achieve . appropriate balance . 5) Signal systems subject to Ramsey County Signal Policy . 6) Access control significantly impacts design and operational characteristics 7) Designated TH 96 Regional Trail -- part of the Regional Recreation Open . Space System (1991) -' . . . - REQUEST FOR PROPOSAL TRUNK BIGIIVAY 96 CONCEPT REPORT (Draft 12/19/94) INTRODUCTION Ramsey County and the Minnesota Department of Transportation (MnDOT) have negotiated the transfer of jurisdiction over Trunk Highvay (TH) 96 from State Trunk Highway 61 in Vhite Bear Lake to Old State Trunk Highway 8 (CSAH 77) in ~ New Brighton. This transfer represents the first of several trunk highway turnbacks identified in the functional consolidation of roadways plan for Ramsey - County. - ~ The 8.45 mile segment identified for turn back crosses seven communities; New I Brighton, Arden Hills, Shoreviev, Vadnais Heights, North Oaks, Vhite Bear Lake, and Vhite Bear Township. Trunk Highway 96 carries a functional designation of "A-minor'1 Arterial, serving as an important transportation link for the seven communities identified and surrounding areas. . . For several years there has been widespread interest in improving TH 96. However, within the context of overall state p'riorities, MnDOT was unable to . program or implement significant improvements. Eligibility for CSAH Turnback funds now provides the opportunity to identify and implement needed transportation improvements. Ramsey County has recently convened a TH 96 Task .., Force to identify issues, evaluate alternative solutions, and stage future improvement efforts. The scope of this effort will include consideration of the highvay's role in broader community needs as well as its traditional transportation function. The Task Force's work will be presented in the form of . a Concept Report to all affected municipalities for approval. The Repor t wi 11 serve as a guide for subsequent design and reconstruction/improvement efforts. Ramsey County staff will manage and facilitate the task force process. . Technical/engineering support services will be provided via a professional services contract. This Request for Proposal has been prepared to elicit information about I professional consulting services in the fields of transportation corridor studies and highway design. This information will provide a basis for contracting professional services in support of Concept Report development. An . optional Phase II provision is also included for the potential continuatiqn of professional services into final design as per staging recommendations in the Concept Report. I SCOPE OF PROJECT The Ramsey County Public Vorks Department is seeking proposals from consultants I with extensive experience in the area of transportation planning and engineering. The selected firm will work with the assistance and direction of Ramsey County staff and members of the TH 96 Task Force. The consultant role I viII focus on development of appropriate technical/engineering information to support development of conceptual recommendations for future TH 96 improvements. The completed work will be assembled into a Concept Report for submittal and -' I -L- -------- - . ~ approval by participating municipalities. An optional Phase II provision is also included to establish a basis for possible extension of professional services into final design. The TH 96 study area extends 8.45 miles in northern Ramsey County, directly impacting the communities of New Brighton, Arden Hills, Shoreview, Vadnais Heights, North Oaks, Yhite Bear Lake, and Yhite Bear Township (Figure 1). Its easterly and westerly termini are, respectively, State Trunk Highway 61 in the ~ City of Yhite Bear Lake and Old State Trunk Highway 8 (County State Aid Highway 77) in the City of New Brighton. In addition to numerous connections with local ~ and County streets (and TH 61 as noted), TH 96 intersects with Interstate ~ High~lays I-35E and I-35Y, US Highway 10, and State Trunk Highway 49. The north - side of TH 96 in the City of Arden Hills includes approximately 1.4 miles of . frontage along the Twin Cities Army Ammunition Plant site, now under study for alternative land uses. The highway alignement was established in the late I 1800's and currently functions as major east-west arterial. The focus of the TH 96 Concept Study will be on the segment westerly of Yhite I Bear Parkway (immediately east of I-35E). The segment to the east of Yhite Bear Parkway has been studied at length in recent years. Ramsey County, in cooperation with the City of Yhite Bear Lake and Yhite Bear Township, is I currently completing final design for the reconstruction of TH 96 between TH 61 and White Bear Parkway. Construction is scheduled to begin in 1995. The task force will have an opportunity to review design elements on this segment for possible application to other segments. 1- This project will identify and evaluate fundamental transportation and related community impacts/needs. It is critical the study address local/regional 1 planning and development efforts and seek to develop support and concensus among the seven communities. To that end, the consultant will be expected to have a strong working knowledge of local/regional transportation and land use issues. Concept study recommendations will address overall transportation system design, I related land use compatibility/impacts, and staging of identified improvements. York performed in support of this project will comply with all applicable I federal, state, and local statutes, regulations, guidelines and standards. This Request for Proposal (RFP) does not obligate Ramsey County to complete the I project. The County reserves the right to cancel the solicitation if such action is considered to be in its best interest. SCOPE OF SERVICES SOUGHT I The purpose of the project is set forth in the introduction and overall scope of project provided above. The overall objective is to complete a Concept Report 1 to guide and stage future improvements to TH 96. This report will be developed cooperatively with the Trunk Highway 96 Task Force, affected municipalities and other local, state, and regional agencies. I ~ 1 -L- ~ . . .- (Phase II Option) -- Information is also being sought in conjunction with this RFP concerning consultant capability in the area of final design. This will be considered an "optional" Phase II work provision and not a committment to contract final design services. Information provided may provide a basis for - negotiating a contract extension upon completion of the Concept Report. Ramsey County will consider the professional experience/capability, approach and costs for final design, and consultant performance during the concept study and make a - determination concerning extension of contract services. This consideration in no way obligates Ramsey County to extend work into Phase II design efforts. The level of engineering/technical detail to be provided during this project is - approximately 10% of the total engineering required for construction plans and sped fi ca t ions. The ultimate level of detail sought for anyone project element or study area will be adjusted as warranted to support a sound decision process. - Initial base line information will be developed first via review of former MnDOT files and previous reports (1987 TH 96 Task Force Study, I-3SE Study). Additional information development will be defined through close coordination with County staff and the Task Force. The scope of study efforts and study - schedule will be established early in the process as part of collective refinement of the Concept Report work plan with Task Force input. .. I Concept study work will follow an open process. Specific design features have not been identified. All reasonable alternatives and issues will be considered. The following general operational characteristics and criteria have have been -- developed as a foundation for study efforts: 1) Designated "A-Minor" Arterial I 2) Multimodal Pacility 3) Design shall: - a Accomodate current and projected traffic volumes (20 Year) -- (no traffic calming) o Provide for functional corridor continuity . o Meet State Aid Standards o Provide for design speeds which meet or exceed posted speeds -- changes subject to traffic studies and state determination . o Provide for truck and commercial traffic o Address historical and environmental/social requirements o Provide for adequate snow storage and handling - o Provide turn lane or median design elements for all access o Not unduly increase operation and maintenance costs (ie. landscaping) 4) Improvements must support highway and landuse compatibility -- achiev~ I appropriate balance 5) Signal systems subject to Ramsey County Signal Policy I 6) Access control significantly impacts design and operational charac t eris ti cs -' - - :,- -- 1 1 1- 7) Designated as TH 96 Regional Trail -- part of the Regional Recreational Open Space System (1991) 1 The following project elements/issues represent general subject areas currently identified for inclusion in concept development: 0 Develop General Baseline Information -- identify 1 issues/deficiencies and evaluate related study or planning reports/recommendations I 0 Roadway Design Alternatives 0 Traffic Signals/Geometrics I 0 Sidewalk and Path Alternatives/Issues 0 watershed Issues/Drainage/Stormsewer 1 0 Right of way Impacts 0 Landscape/Aesthetics 1 0 Environmental/Social Impacts 1 This is not intended to be a restrictive list of work areas but rather a guide ~ for proposal development. The consultant(s), on the basis of expertise and professional judgment, are encouraged to correct, refine, and expand task 1 elements to better address overall project objectives. Further refinements will be considered during negotiation of the professional services agreement. Additional elements and issues may be identified by the task force in work plan refinement or as the study progresses. 1 The consultant team shall have adequate staff resources to provide the full range of professional services required to complete all tasks and objectives set 1 forth in the attached work plan within the time frame provided. Consultant staff will attend a limited number task force meetings and public meetings as directed by Ramsey County. It should be assumed, however, that public 1 involvement and presentation tasks will generally be executed by County staff. Computer based graphics, presentation materials, and related survey, design, and mapping data shall be compiled and relayed to the County in a format compatible 1 with AutoCadd Release 12 (C-3). TIMETABLE 1 This project will be initiated on or about March 21, 1995. All work shall be completed within 12 months of initiation. 1 A comprehensive project schedule should be developed as part of the written proposal. ~ 1 -4- - - . .'- PROJECT COSTS Each respondent should develop a budget itemization consistent with the proposal document. As a guide to proposers in assessing the overall scope of . professional services sought. a maximum cost figure of $100,000 is the absolute upper limit for contractual services including both professional fees and out of pocket expenses. . Actual payment for consultant services will be based on billing rates and chargeable fees in accordance with specifically identified actual costs and profit , and as set forth in a Professional Services Agreement to be negotiated . vi;:h the selected consultant prior to contract award. The contract shall include estimated not to exceed cost figures for major project elements and firm not to exceed cost figures for professional services. A firm not to exceed . total project cost figure, including professional fees and out of pocket expenses, shall be indicated. Out of pocket expenses will be reimbursed separately based upon invoices for actual expenses incurred. Proof required to document actual expenses will be negotiated as part of the con trac t. The County . project manager reserves the right to require prior approval of all major expenses. See submittal format requirements in the next section for a full explanation of cost itemizations to be included in the proposal document. . Payment schedules will be negotiated prior to contract award. An appropriate retainage will be required to assure acceptable results and timely completion of 1- all project tasks. PROPOSAL CONTENTS . Proposal text shall be limited to 10 single-sided pages. Supporting tables, graphics, staff resumes, and technical references are not included in this limit . Additional information, such as company literature, may be included in I the submittal but should be provided as attachments to the proposal, not as part of the proposal text. All proposals should include the following information: 1- Cover Letter - Introduce the lead consultant submitting the proposal, I including the name and address of the contact person(s) representing the same, and also names of other firms or individuals participating in the proposal. . 2. Introduction - Restate RFP objectives and products to demonstrate the respondent's view and understanding of the proj ec t. I 3. Experience and Qualifications - Identify the general background, s true tUl-e and organization, and available resources in personnel/experience/ information systems of the participating firm or firms.. List at leas t five . client references (include address and phone number) with a brief statement of services rendered. Addi tional information should be included to demonstrate competence and performance ab ili ty in similar projects. The I project manager and other members of the project team should be identified. The respondent should identify personnel, along with a description of which -' proj ec t tasks each will be responsible for, and relevant detail of thei r I -"5 - - . . .- training and experience. The consultant project manager must be available in a local office during the project period. 4. Proposed Vork Plan and Approach - Discuss specific project elements ~ith a . brief outline of the recommended approach (es) to be taken. The scope of consultant ~ork necessary to achieve desired results should be identified. Specific techniques and methodologies should be included in this section. . 5. Project Timeline - Clearly identify anticipated time frames for each maj or project element. All project tasks must be completed ~ithin 12 months. 1 6. Projec.t 3udge t - Itemize i'erson hours, applicable classifications, and hourly billing rates along ~ith anticipated charges for equipment, materials and other expenses for each project elemen t . The itemization shall be . comprehensive, delineating in detail costs relating to professional services required for completion of each task. A total proj ec t cost shall be established. Phase II (optional -- see Page 3) design costs should be 1 indicated separately. 7. Professional Services Agreement - To aid in proposal evaluation and preparation of a draft agreemen t, it is requested that the consultant . include a sample of professional services agreement vith the proposal documentation. A professional services agreement ~ill be prepared by the County upon .- selection of a consultant. The draf t agreemen t ~ill be based on proposal revie~ and consultant presentation. The final agreement ~ill be the product of negotiations bet~een the consultant and the County. The general format I of the agreement shall include at least the follo~ing items: 1) Agreement Introduction I 2) Basic Services of the Consultant a) General b) Vork Plan Tasks 3) Additional Services of the Consulting Firm I 4) County Responsibilities 5) Period of Services 6) Payments to the Consultant 1 7) General Considerations/Provisions 8) Signature Block 1 Appropriate language ~ill be added to document the specific nature and scope of services, c.osts, responsibilities, and liabilities of each party. Additional areas of concern may be incorporated, subject to mutual agreement betveen parties. . Standard provisions set forth in Appendix A ~ill be incorporated into the professional services agreement. These provisions are considered minimum 1 requirements and may be increased or expanded if it is agreed to be in both parties' interests. I' . - ~- -- ... ~ . .- Proposals should be complete and concise. Examples of engineering products completed for similar projects and proposed procedures and methodologies are desirable. . EVALUATION The timetable for submission, evaluation, and award shall be as follows: . * Proposals Due - February 10, 1995, Noon * Oral Interviews - February 21, 1995 * Contract Award - March 21, 1995 . All proposals received by the deadline will be evaluated by a selection panel comprised of representatives familiar with local transportation issues and . needs. Oral interviews may be given to all proposers. If interviews are conducted they . will consist of a presentation by the proposer to the selection panel immediately followed by a question and answer session. Factors upon which proposals and interviews w~ll be judged shall include but not . be limited to the following: * Expressed understanding of project objectives and work tasks * Demonstrated understanding of local, regional, and state governments 1- * Firm qualifications - structure and organization, general background and reputation, readily available resources in personnel/experience/ information systems, including financial and technical resources, . compliance with public policy, and demonstrated competence and performance ability in architecture and urban design * Personnel qualifications - education, experience, and reputation of . staff members assigned to the project * Detail and quality of proposed work plan, schedule, and anticipated products * Detail and reasonableness of cost estimates, service charges, and . unitized billing rates * Quality of presentation - graphics, verbal skills, time management, responses to questions, etc. . Selection will be made based on the original proposals presented to the selection panel without negotiation with any proposer. . SPECIAL CONDITIONS As a prospective contractor, your organization should be able to comply with the . following terms: I ~ . -1- - . , - - ~A. Limitations I Ramsey County will not be responsible for any costs incurred by applicants in preparing proposals. I B. Independent Price Determination Applicants are held legally responsible for their proposals and proposal I budgets. Applicants are required to agree not to collaborate for the purpose of restricting competition with other applicants or competitors in developing proposals and budgets. I C. Payment for Services Purchased I A contract will be executed between the successful applicant(s) and Ramsey County. D. Reimbursement/Payment I Method of payment for services will be negotiated as part of the contract process subject to requirements set forth _in "Project Costs" and "Proposal I Contents" of this RFP. E. Contingency Clause I~ If addendums are needed, all recipients of the original RFP will be ~ notified. If clarifications are needed, Ramsey County reserves the right to notify individual respondents to the RFP. Ramsey County reserves the right I to interview any or all respondents they choose. F. Proposal Rejection I Ramsey County reserves the right to reject all proposals. SUBMISSION OF PROPOSALS I Thirteen (13) copies of proposals and supporting attachments shall be submitted to: I James E. Tolaas, Project Manager Ramsey County Public Works 3377 North Rice Street I Shoreview, Minnesota 55126 no later than noon on February 10, 1995. Late proposals will not be considered. I DEPARTMENT CONTACTS I Questions concerning the RFP and submittal requirements should be directed to James E. Tolaas, Project Manager, Ramsey County at (612) 482-5203. Written 114l1ll ,.".", 0' '0".0" .., b. "boi".d " ,... ., 'b. .dd,.," iodi..'.d. I -8- ! ) Portfolio; Compositio" INSTITUTIONAL '. As.l pern.'rrt.lgf! of tot.l( .1~serS GOVERNMENT INCO:NIE RECE1VED PORTFOLIO DEe 2 81994 illY OF ARDEN HILLS November 30, 199.:1- Institutional Government Income Portfolio':; investment objectit/e is a high in'ei of current income consistent with preseroation of c..lpiul. - u.s. .-\l:!;l:I1CY Po..-:!'olio Commentat-y - Prm"':lp.ll-unlv i,2."" I I The economic figures reponed in November did little to cJ.lm fixed - Shofr.Term 11 (~-;, income invesrors' fears ot infla[ion~ as most economic data continued co U.S. T~e:lsury 23')/" indicate <l strong U.S. economy. Even after the Federal Reserve's -5 - basis poinr increase uf both the feder:ll funds rate and the dis...:ounr rate, - investors began predicting further interest rate increases. The unsettled , Fund Performance Treasury marker dissuaded some invesrors from rhe mortgage~backed - securities marker. Nlany have nor rerurned to this market since the Fund performance calculations <.Ire through exodus earlier this year when interest rates rose sharply and November 30, 1994, and reflect the reinvestment of unexpectedly. Consequently, the spreads of these securities (the I dl dividend and capital gams distributions. difference between [he bid and offer prices l continue co be wider rhan One.Year Total Return their histOrical norms. Does not reflect the fimd's L5~,"o sales charge. The fund's November toral teturn was -1.89% (with dividends I eriturional Govemmenc Income Porrtolio.....-29.46% reinvested and not including sales chatgel compared ro the Merrill errill Lynch 3~j Year Treasury Index.........42.72% Lynch 3~ to 5-Year Index's total remrn of -0.71 ~-~. Average Annual Total Re'turns Beginning with the December dividend payout, we are I Rer1ects the fund's L5%l safes charge. increasing the monthly dividend of the Institutional Government One-Year ...........................................,..,.....-30.52 ';''0 Income Portfolio to 8.5 cents per share, from 7.5 cents per share, Fi\'e. Year .............................................__........3.3 7Oc~ which the fund has paid since inception. Assuming stable conditions I Since Inl.;eption (7/11/88) ...............................4.82% in the fixed income market, we believe this higher dividend can be sustained for much of 1995. subject co rhe level of purchases and I Fund Statistics: redemptions. - - - - Our decision to raise rhe dividend is based on t\vo factors. Firsr. [he fund has continued to e3rn an amount char approximates [he monthly Net Assets 5420 million dividend. despite the fact that 441~{.. of the portfolio is now im.ested in I Net A5se~ Value 57.45 (:;1sh, one- Jnd rwo~~ear U.S. Tre:1sury securities. This is primaril~' due co Inception Date July 1988 the dram3ric rise in interest rates over the course ot 1994. whlch has I Fiscal Year End September 30 enabled the fund to purchase short-term and Treasury securities -char are at higher rates than in 1993. In addition, cash flow trom the morrgage- Ti cker Sym bo I PJlGX backed derivative securities in the porttolio has remained fairly stable, in I Initiallnvescment Fund dosed to spite of the market conditions that led to depressed pncing or those new Investors securmes. Subsequent Investments 52,500 Second, bec;1use the fund now has fewer sh;1res nursmnding, the I 12-Month Distribution 51.18 dividend reserve has increased when measured on J per~share basis. The dividend reserve is undisrributed earnings from the fund that are held in . reserve to help ensure continued sr;1biliry of the fund's dividend. The I dividend reserve is reflecred in the fund's net asset \.alue iNt\. v) and income p;1id from this reserve may redu(:e the funJ\ 0JA V. I ("lJl!wltIl:'d '-,J1:)vlCl.: {J.':;C " Distribution History Culltl/lttt!d /,run (mnr p.I!.t" . Since lnceptioll I}uly llfSSJ Since the end of October, the fund's portfolio composition has remained nearly unchanged. Cash, one~ ;Ind two-year U.S. T n:asuries Mon'thly Dividends Paid " aCCount for approximatelv 44% of the portfolio'> holdings IS j S9 milli_ TataJ Mon'thly Dividends 55.34 Our rebalancing eiforrs. whIch also included the sale of morrgage-back CapitaJ Gains derivarives and the eliminarion of the sale-forward program. ha\'e helped Distributions Paid 6 reduce the fund's volatility. The degree to which we have reduced the fund's potential price - To'tal Capital Gains Distributions 50.52 volatiliry has, to approximately the same degree, reduced its porential to Total Distributions recover its NA V. However, we believe the following bctors could help the Per Share 56.36 fund's NA V increase: 1. Stable or decreasing interest rates. - -;"~;!:A"","""''''''' :-:l\i=~""'>I~ua:4Ad3dser; -,,> ~'~,,::...:: ," 2. Narrowing spreads between prices on U.S. Treasury securities ;lnd m(JrtgJ.gi;:~bal;kt:d JcrH';l[lVe ::)..:~urme::;. - , .. .'.. 3. A return ro equilibrium in the supply and demand for morrgJ.ge.backed - Piper Capital Management derivarive securities. Headquartered in .'v1inneapolis, with offices in - . SeJ.rrfe :lod Denver Institutional Government Income Portfolio Characteristics - . Provides investment s.ervices for more than 40 . Invests in securities issued or guaranteed as to payment of principal . murual funds and/or interesr by the U.S. governmenr, its agencies or instrumentalities, - . Wholly.owned subsidiary of Piper Jaffray Companies Inc., which was established in 1895 including mortgage-related securities. (The securities in the fund, not . Piper ]affray Companies has donated 5% or the fund itself~ are guaranteed as to payment of principal and interest.) pretax profits (Q ciVIC and charitable causes each . The fund's investments in mortgage-related securities include derivative I year since 1969 products such as interest-only and principal.only securities~ inverse floating rate securities and Z-bonds. The marker value oi these types of I Portfolio Managers derivatives, given the market experience or 1994, may be more vol at. than other securities owned by rhe fund and may result in increased volatilirv of the fund's NAVin certain market conditions. I Worth Bruntjen . The iund can use invesrment techniques - including the purchase oi . Piper Capital senior vice president and fixed income portfolio manager derivatives and the purchase of securities through the sale-for\vard . 27 years investment experience program - which may cause [he fund's NA V to Huctuate ro a greater I Marijo Gold5tein extent than would be expected from interest rate movements alone. . Piper Capital senior vice president and fixed (Please see "'Investment Objecrive and Policies" in the fundls prospectus income portfolio manager tor a more complere discussion.) I . Nine years investment experience The instrttainnai Government income Portfolio i$ closed to new investOrs. F:gllres shown Marcy Winson relleet past performance and do not guarantee furur~ r~slflts. The return .md principal . Piper Capital vice president and fixed income /la/lle of ,]n investment in the lund wili /lIlcruate and shares. when redeemed, may be I associate portfolio manager worth more or less than their original cost. For mOre informatton ,lbrJl/t :In:'.' 1)( the Piper (unds, including J prnspectus. amto1ct your investment eXL'cutive or cali I ,sor) Sfi6.7778. . Four years investment" expenence Steve Kuhn I . Piper Capital fixed income associate portfolio manager . Three years investment experience I ~] I ---- -- Piper Capita! Management Incorporated . I 222 Saud] Ninth Street, /vtpis. ,-WN S5402~JSO+ [800 866-".-J1 hpt.'T Ja;fmv file, 11mti ,i,jtrihmIlY IIlIff ,\:1.\'/) "'~mb!'r_ ~i07T94(l ~IIGX04 I J . . Prospectus Dated December 9, 1994 - . PIPER FUNDS INC. INSTITUTIONAL GOVERNMENT INCOME PORTF~Cl:::1VED ~ Piper Jaffray Tower ; DEe 2 81994 222 South Ninth Streer - Minneapolis, Minnesota 55402-3804 (612) 342-6387 (local calls) CIlY Of ARDEN HIllS I (800) 866-7778 (toll free) Institutional Government Income Portfolio (the "Fund") is a series of Piper Funds Inc. (the "Company"), an ~ optn.~nd mutual tund whose shares are C'.urenrly oifered in twelve series. The Fund is ciassilled as a di...~rsiii:d mutual fund. - The Fund has an investment objective of a high level of current income consistent with preservation of - capital. In seeking to achieve this objective, the Fund invests exclusively in securities which are issued or guaranteed as to payment of principal and interest by the United Stares government or its agencies or insrrumen- - talities and repurchase agreements fully secured by such obligations. The Fund invests a significant portion of its assets in mortgage-related U.S. Government securities, which include derivative morrage securities. - . This ProspectUs concisely describes the information about the Fund that you ought to know beiore invest- ing. Please read it carefully beiore investing and retain it for future reierence. . Shares oi the Fund are not available to new invesrors. Current Fund shareholders may continue to buy additional shares of the Fund without restriction and may reinvest dividends and other distributions on all or any shares owned. .. A Statement of Addirional Iniormation about the Fund dated December 9, 1994 has been filed with the Securities and Exchange Commission and is incorporated in its entirety by reference in this ProspectUS. Copies may be obtained without charge by calling or writing the Fund at the address or telephone numbers listed below. . 1HESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURIT1ES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES . COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF TInS PROSPECTIJS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. . . I . . . .- . .. . ~ [NVESTMENT OBJECTIVE AND POUCIES - The Fund., invesrment objective ser forrh below cannor be changed wirhour shareholder approval. The investment policies and techniques employed in pursuit of the Fund's investment objective may be changed without shareholder appro\'al. unless otherwise nored. Investment Objective The Fund's investment ooiecrive is;1 high level oi current income consisrem with preservation of capitaL In view of rhe risks inherent in an investment in securities. there is no assuri1nce th::u this objective will be - achieved. The Fund may be subject TO significanr vobriliry-See "Investment Policies and Techniques," - below. Investment Policies .and Techniques - As a fundamenral policy which may nor be changed wirhout shareholder approval, rhe Fund may invesr - only in securities which are issued or guaranteed as to paymenr of principal and interest b~. the U.S. . government or its agencies or instrumentalities e'U.$. Government securities U), and in repurchase agreements fuIiy secured by such securities. The Fund im'ests a significant porrion of irs assets in mortgage. . related U.S. Government securities, which include deri\'ative morrgage securities. The market experience of 1994 ha.s sho\\'ll that certain derivative mortgage securities mar be exrremeJy sensitive to changes in interest rates and in prepayment rates on the underlying mortgage assets and, as a result, the prices of such securities may be highly volatile. .. The U.S. Governmenr securities in which rhe Fund inves!S are issued or guaranreed as to paymeor of principal and interest by the U.S. Government or itS agencies or instrumentalities. The current market prices for such securities are not guaranteed and wiIl /Iuauaro. The Fund may invesr in direa obligations of rhe U.S. . Treasury, such as U.S. Treasury bills, nores and bonds, and in obligations of U.S. Governmenr agencies or instrumentalities, including, bur nor limired ro, Federal Home Loan Banks, me Farmers Home Administrarion, Federal Farm Credir Banks, rhe Federal National Morrgage Association, the Governmem . National Morrgage Association, rhe Federal Home Loan Morrgage Corporation, rhe Financing Corporarion and rhe Srudeor Loan Marketing Association. Ob1igarions of U.S. Governmeor agencies or insrrumenraliries are backed in a variery of ways by rhe U.S. . Government or its agencies or instrumentalities. Some of these:: obligations, such as Government National Mortgage Association morrgage.backed securities, are backed by the full faith and credit of the u.s. Treasury. Orhers. such as obligarions of rhe Federal Home Loan B3nks. are backed by rhe righr of rhe issuer ro borrow from rhe Treasury. Srill orhers, such as rhose issued by rhe Federal Narional Morrgage Associarion, are backed . by the discretionary authority of the U.S. Governmenr [0 purchase cerrain obligations of the agency or instrumentaliry. Finally. obli~3rions of other agencies or instrumentalities are backed only by the credit of the .:1genc~- or instrumentaliry issuin;: the' nhli~arions. . v'olati/ity. Hisroricall)\ rhe Fund has arrempred ro mainrain an average weighred life of irs porrfolio securiries (orher rhan inverse floating CMOs) ranging from 3pproximareJy rhree ro five years as parr of an overall srraregy ro limir rhe volariliry of rhe Fund. The volariliry of a securiry is rhe sensiriviry of rhe securiry's . price to chnnges in interest Tates. In the wake of the market developments which occurred in 1994, the Fund's CUrrenr projmed vOI31i1iry is significanrly Il=rer than irs targered range, and rhere can be no assurance rhar rhe Fund's projecred volariliry will move h.1ck wirhin irs rargered range in rhe near furure. The . Fund invests .a significant porrion of its assets in mort~:'Ige.related securities, the <1vernge lire of which is determined using m:nhemaricnl models that incorporate prep.:Jyment assumptions and other factors that invoke estimates of future economic and mnrker conditions. These estimates may vary from actual funlre . results. porricui.Jrly during periods of extreme m3rkct volatihry. In .addition, under certain market I 6 . . , . . Investment IWks.. The Fund is subject to interest rat.. risk, which is the potential fot a decline in bond prices due to .rising inrerest rates. In general, bond;prices vary. inversely with. interest rates- When interest rares rise, bond prices generally fall. Conversely,' when interest rates. fall, bond prices generally rise. Interest - rate risk applies to U.S, Government securities 'asi well as other bonds- u.s. Government seauities are gua;anteed only as to the payment of interest and principal. The current market prices for such securities are - not anteed and will f1u~te. ,: ._.~. ......." " . ..- .' . ',; ;'=~~imd inv~ 'a~ s;gnifica:.t~~~on"'Of~~l~ 1n"~o~g::re;ar:~~C:riti"': and;'~ a .~t,'~ ~ subject to. -prepayment. risk. Prepayinenr risk resulJs 'because; as interest rates fall, homeowners ate. more - likely ro refinance their home mortgages. When ho~e mortgages are refinanced; the principal on mortgage- - related securities held by the Fund' is "prepaid"',drlienhan expected. The Fund must.then reinvest the un~ncicipatcd principal payments, JUSt at 0 time when interest rates on De'\'.' morrg:1ge invesonents are f.:zlIing. - Prepa}'T':',ent ri:k h:JS:wo,imP.ortant eff~ctS??~und:, <"."'. .., H '."" - . When' mrerest rateS fall and addinonal mortgage. prepayments 'must be remvesred at lower mreresr rates., the income of the Fund will be redu&d. ,j . When interest rates fall, prices on mortgage-backed securities may not rise as much as comparable I ,,:. .. "." '.Treasury bonds because bond marker'invesinrs may anticipate. an increase in mortgage prepayments '. ':lnd' likel'd !in .. ,".'1'-1_:""" ,..... .... '." ..' .....,. -.. . . a y. ec e-mmcome..~._.4' _' 'n'- '. ._.1.~ ~r., q-. { , ,', .',1_..._. . d~ ;; '. ,,-,,~ ~;. 'r~ ._:" ,', _ -,'-'"", "'~;.II!o r ~,,-"", " I~ ,'.' ", .' .... .: :"_-- The Fund's invesonents in morrgage-~elate(fs~tiesalsosubjecrthe Fund to e,crensionrisk, Extension I risk is the possibility that rising interest rates may 'C;~se prepayments ro occur ar i slower than expected rate. This particular risk may effectively change asecUH!r whiclrwas considered'shorr-or'iritermediate-cerm at the rime of purchase into a .long-term security. u,ng-cerm securities. generally fluctUate more widely in response to. changes. in interest: rates than short<~ intermediare-cerm securities.: .' .' ' . .-. ,. I . The Fund's invesnnents in mortgage-relaced'bnties inclua~ d~ri~~tive morrgage~curiti';' -~i:I:i ;.. Os and 'stripped mortgage-baclced securitieS ~ch, as discussedabove,.may.involve risks in addition ro those:found;in other mortgage-related:securities.:The markerexperience of1994 has shown that certain I derivative mortgage securities'may. be highly sensi~e ro changes in interesr and prepayment rares and; as a result, the prices of such securities may be highly; ""larile. lncaddition, the market experience of 1994- has shown that during periods of rising interest rates,'d1e market for certain derivative mortgage securities may I become more unstable and such securities may beCOme mor~ diffiCult to'sell is marke, makers' either choose not ro repurc!l3Se sUch securities or offer prices., liaJd on current marker conditions, which are unacceptable r6 the Fund. As discussed above, the invesnnenntdllliques used by the Fund also pose certain risks. . . 1 . - I ' MANAGEMENT Board of Directors '1 . , !'1 I The Company's Board of Directors has '''die primary responsibility for' overseeing the overall management of the Company' and electing its o~ers. . t Investment Adviser:"= ," ,.'1 .. I Piper Capital Management Incorporated (th~ "Adviser'') has been rerained under an Investment Advisory and Management Agreement with the Company to acr as the Fund's invesnnenr adviser subject to the authoriry of the Board of Direcrors; ..' '~~ ,";. . ;.:, I '>,,'In addition co acting as investment adviser for:rhe other series of the Company, the Adviser.aIso serves as investment adviser to a nutnber of other.open'eliil and closed-end.invesrment companies. and ro.various other' concerns, including pension..and profit' sliaring funds, corporate funds, and individuals. As of I I I '11 j I . I ~ regular meeting of shareholders has not been held during the inunediately preceding 15 monrhs, a shar. holder or shareholders holding 3% or more of the voting shares of the Company may demand a regul meeting of shareholders by written notice given to the chief executive officer or chief financial officer of the Company. Within 30 days after receipt of the demand, the Board of Direcrors shall cause a regular meeting of shareholders ro be called, which meeting shall be held no later than 90 days after receipt of the demand, all at the expense of the Company. In addition, the 1940 Aa requires a shareholder to vote; for all amendments to fundament.al investmenr policies and restrictions and for all amendments to investment advisory contracts - and Rule 12b-l distribution plans. The 1940 Act also provides that Direcrors of the Company may be removed by action of the record holders of two-thirds or more of the outstanding shares of the Company. The Directors are required to call a meeting of shareholders for the purpose of voting upon the question of - removal of any Director when so requested in wriling by the record holders of at least 10% of the Company's outstanding shares. - The Fund periodically sends financial and other reports and communications (including, but not limited - to, annual and semi-annual financial statements) to its shareholders. Unless otherwise required by law, the Fund intends to mail one of each such report or communication to each individual mailing address, which may be the - address of one or multiple shareholders of record. However, shareholders have the right to receive additional copies of each such report or communication without charge upon written requesr to the Fund. - I PENDING LITIGATION Several complaints have been filed in fedet.al i:oUtt against the Fund, the Adviser, the Distributor and certain individuals affiliated with the Adviser and the Distributor. An Amended Consolidated Class Action I Complaint, representing a consolidation of a number of previously filed complaints, was filed on October 5, 1994 in the United States District Court for the District of Minnesota, by Richard J. Rodney, Jr., Doug Shonka, Carl Patrick Monahan, Jerry Hoehoen, Rosemary Boris, Thomas W. Newcome, Delvin D. Junker, Printing Mailing Trade District, affiliated with the NeWspaper Drivers' Division of the International BrOther. I hood of the Teamsters, The Hisrory Theatre, Ine., Paul Gold and Bernard Friedman. The complaint allege certain violations of federal and srate securities laws, Common law negligent misrepresentation and breach of fiduciary dury. A similar complainr was filed in the same court againsr the same parties on October 21, 1994, I by Eltrax Systems, Inc. A third complaint relating to the Fund was filed againsr the Company, the Adviser, the Distributor and Piper Jaffray Companies Ine. on September 30, 1994 in the United States District Courr for the District of Colorado. The complaint alleges certain violations of federal and state securities laws and I common law fraud. Plaintiffs in the complaint are Gary Pashel and Gregg S. Hayutin, Trustees of rhe Mae Pashel Trust; Mae Pashel, individually; Gary Pashel and Michael H. Feinstein, Trusrees of the Roberr Hayutin Insurance Trusr; and Dennis E. Hayulin, Gregg S. Hayulin and Gary Pashel, Trustees of the Marie Ellen Hayutin Trust. The Fund intends to defend these lawsuits vigorously. An additional complaint has been filed I in United States District Court for the District of Minnesota relating to two closed-end investment compa- nies managed by the Adviser. This last complaint does not involve the Fund. No dealer, sales representative or other person has been authorized to give any information or to make I any representation other than those contained in this Prospectus (and/or in the Statement of Additional Information referred to on the cover page of this Prospecrus), and, if given or made, such information or representations must nol be relied upon as having been authorized by the Fund or Piper Jaffray Ine. This I Prospectus does not constitute an offer or solicitation by anyone in any state in which such offer or solicitation is not authorized, or in which the person making such offer or solicitation is nol qualified to do so, or to any person to whom it is unlawful to make such offer or solicitation. I 23 I ~ I I , -- II 3490 Lexington Avenue North League of Minnesota Cities St. Paul, MN 55126-8044 MEMORANDUM RECEIVEn - TO: City Managers or Clerks '- - Jim Milia t fi1 J!. DEe 2 G 1994 FROM: - em Or 4RlItN HILLs . DATE: December 5, 1994 - RE: 1995 League of Minnesota Cities Policies and Priorities - ----------------------------------------------------------- I I am pleased to forward the 1995 League policies and priorities. I believe that the concise and brief format for these policies represents a significant step forward in communicating our I' problems and concerns with policy makers. I want to commend every city official for your involvement, assistance and interest in the League's new policy develoment process. With the help of many city officials, we were able to focus on the most pressing problems facing cities and I to develop creative solutions to address those problems. At their monthly meeting in December, the League's Board of Directors approved the I enclosed Action Agenda for the League. This list is almost identical to the agenda suggested by the membership at the Policy Adoption Conference. The exception is the addition of the personnel policy (SD-2). The Action Agenda policies will be the League's highest priority for the I upcoming year. Where appropriate, the League staff will draft and have legislation introduced to further these efforts. I The revised policy process initiated by the League's Legislative Advisory Committee was also a significant step forward. We had tremendous participation from city officials throughout the state. A chronology of the new policy development process is outlined on page vi of the I booklet. If you are not currently a member of one of the League's policy committees or task forces, and you would like to get involved, please contact any of the Intergovernmental Relations staff or me. I Don't be surprised if we ask you to contact your legislators on issues of importance. The I success of the League is ultimately dependant on the involvement of our members, not only in the policy development process. but in our lobbying activities. I- 1(6121490,5800 AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER 1.800.925-1122 plus your citycode TDD(612)490-9038 Fax! 6121490-0072 _u_ -------------- ---- - 3490 Lexington Avenue North League of Minnesota Cities St. Paul, MN 55126-8044 1995 ACTION AGENDA The League of Minnesota Cities represents 811 of Minnesota's 856 cities as well as 10 - urban towns and 24 special districts. . All sizes of communities are represented among the League's members (the largest nqnmember city has a population of 149) and each region of the state is represented. One of the most important purposes of the League - of Minnesota Cities is to serve as a vehicle for cities to define common problems and - develop policies and proposals to solve those problems. . The League has identified the following issues as priorities for action during the 1995 - legislative session. Specific League objectives are listed in bulleted text. - Unfunded mandates . . Oppose additional unfunded mandates, . IdentifY specific unfunded mandates and modifY or repeal those laws. \. . Pass legislation authorizing cities to not comply with unfunded mandates. Local Government Aid . Preserve the use of the implicit price deflator index to at least maintain LGA at a . constant, inflation-adjusted level. . Pass legislation which provides additional state resources for further increases in . LGA to reverse the rapid growth in the reliance on the property tax. Homestead Agricultural Credit Aid Growth . . Pass legislation reinstating the HACA household growth adjustment factor, and an inflationary adjustment factor similar to the LGA index. Transfers of LGA/HACA to Schools . . Ensure that any increase in the state's share of school revenues comes from sources other than further transfers from city property tax relief programs. . Growth Management and Annexation . Support legislation restricting urban development outside of city boundaries. . . Oppose legislation limiting city authority over services such as fire, sewer, and water that . are provided to township areas. . Support legislation facilitating the annexation of urban property. -. OVER AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER . (6121190.5600 1-800.925.1122 plus your cjtycode TDDr6I21490-9038 Fax16121490-0072 ---- - LGA/HACA Penalties for Using TIF . Eliminate the LGA/HACA aid penalty. . Reauthorize TIF programs for use on scattered-site housing redevelopment and rehabilitation. - Personnel . Pass legislation reforming the arbitration process, including providing for final offer, total package arbitration . Pass legislation reforming veterans preference discharge procedures. - - Tdecolllmunicatioas . Preserve and enhance the authority of local governments to require permits for the use - of local rights-of-way and property and to compensate those governments for that I privilege. . Support state licensure of telecommunications providers to ensure they have the financial, technical, and legal qualifications to provide proposed services, and to - preserve continued access to governmental, educational, and community programming. J - I Transportation . Support an increase in me gas tax and additional revenue sources dedicated to -, transportation programs. . Ensure that cities receive revenues necessary to meet present and future transportation needs, including the authority for funding options to raise the dollars necessary to adequately fund roads and transit. , I . Pass legislation eliminating all nontransportation programs from receiving highway user distribution funds, except for the state patrol. . Pass legislation authorizing cities under 5,000 population to qualify for municipal state I aid if certain qualifying conditions are met. Workers' Compensation I . Support initiatives to make Minnesota's system competitive with neighboring states. I I . . .- . League of Minnesota Cities - Policy Development Process The League's policy development process has taken place over the past five months. The process began with a member survey of priority issues facing city officials. The process will not end with the Policy Adoption Conference. The committees will schedule additional - meetings during the upcoming legislative session to discuss additional issues, develop alternative solutions, and to discuss strategies to implement the League's policies. Listed below is a brief chronology of the major events in the policy development process. At - each step, members have the opportunity to participate in the development process. - Late May- The League solicits members for ideas and problems. A survey at the Annual - Early June Conference allows members to formally suggest topics. I June The League President accepts applications for committees and appoints policy committee members. - The policy cOmmittees are: Improving Community Life - , Improving Service Delivery I Improving Local Economies Improving Fiscal Futures July Committees meet to discuss issues raised in member survey. Committees may ,. also form task forces to more thoroughly study specific issues. Task forces can include noncity members with a knowledge of the focus issue. , I August Committees and task forces meet to discuss issues and problems, accept through testimony, and develop policy statements. I September October Legislative Committee meets to finalize policies. The Legislative Committee is . comprised of the League's Board of Directors and the chairs of the four League policy committees. November Policy Adoption Conference. Members have the opportunity to discuss the . draft policies, propose changes, and suggest additional policies for membership consideration. I December The Board adopts the Legislative Action Plan, based on input from the Policy Adoption Conference. . January Legislative Session. During the session, the policy committees and task forces through will continue to meet on issues and strategies. Members can assist the . June League's legislative efforts by volunteering to contact legislators on the variety of issues of interest to our cities. -. VI League of Minnesota Cities I CONTENTS - - - League Staff .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III Legislative Policy Committee Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . tV Policy Development Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI Statement of Intent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii - PART I -- 1995 POLICY GUIDELINES - - Improving Community Life I CL-1. Liveable Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . I I PART II -- 1995 CITY POLICIES General Policy Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 I Improving Service Delivery I' SO-I. Unfunded Mandates .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 SD-2. Personnel ............................................. 4 SD-3. Environmental Protection ................................. . 5 I SD-4. Absentee Voting ....................................... . 5 SD-5. Presidential Primary Voter Designation. . . . . . . . . . . . . . . . . . . . . . . . . 6 SD-6. Election Judges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 I SD-7. Local Government Cooperation and Collaboration ................ . 6 Improving Local Economies I LE-1. Workers' Compensation ................................... 7 LE-2. Growth Management and Annexation . . . . . . . . . . . . . . . . . . . . . . . . . . 8 I LE-3. Metropolitan Leapfrog Development . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 LE-4. Planning Enabling Statutes ................................ . 8 LE-5. State Development Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 I LE-6. City Cooperation With Counties and Schools in Economic Development " 9 LE-7. LGAlHACA Penalties for Using TIF . . . . . . . . . . . . . . . . . . . . . . . . . . 10 I LE-8. Restrictions on Revenue to Pay LGAlHACA Penalties ............. . 10 LE-9. Economic Recovery Grant Program Funding From LGAlHACA Penalty .. 10 LE-I0. State Funding for Economic Recovery Grant Program . . . . . . . . . . . . . . . 11 I.. LE-II. City Involvement with Telecommunications Providers . . . . . . . . . . . . . . . 12 LE-12. Telecommunications as an Economic Development Opportunity ........ 12 LE-13. Local Permitting Authority for Telecommunications ............. . . . 12 LE-14. Adequate Funding for Transportation .......................... 13 I LE-15. Turnbacks of County and State Roads . . . . . . . . . . . . . . . . . . . . . . . . . . 13 I 1995 City Policies I LE-16. Cooperation Between Counties and Cities Over County Roads Within Cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 - LE-17. State Aid for Roads in Cities Under 5,000 . . . . . . . . . . . . . . . . . . . . . . . 14 LE-18. State Aid for Urban Road Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 LE-19_ Tax Policies to Encourage Housing ....,.... -.... -.......,.... 15 LE-20. State Programs to Encourage Housing . . . . . . . . . . . . . . . . . . . . . . . - . . 15 Improving Fiscal Futures FF-l. Local Government Aid . . . . _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 FF-2. HACA Growth 16 - ........................................ . FF-3. Transfers of LGAlHACA to Schools. . . . . . . . . . . . . . . . . . . . . . . - . . . 16 - Ff'-4. Levy Limits . . . . . . . . . . . . , . . . . . . . . . , . . . . . . . . . . . . . . , . . . . . 16 FF-5. Levies on Market Value ................................... 16 - FF-6. State Deductions from LGA ............................... . 17 I FF-7. Payments for Services to Tax Exempt Property .................. . 17 FF-8. Delinquent Property Tax Penalties ............................ 17 FF-9. Reporting Requirements ................................... 17 . FF-IO. Truth-in- Taxation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 . \. I I . I . I , -, II League of Minnesota Cities I - - - - ~ STATEMENT OF INTENT I - There are many problems which limit the effectiveness of city government to improve - community life, improve the fiscal future and service delivery of city government, and to improve the local economy. I What follows are statements of the problems facing cities and the solutions proposed I to help resolve these problems. These statements of problems and proposed solutions form the policy of the League of Minnesota Cities. Additional and alternative solutions to these problems may be proposed after the Policy Adoption Conference I and the members of the League authorize its Board of Directors to consider and support additional or alternative solutions, if necessary, to resolve the problems ., identified in this policy statement. . I I I I I I .- I 1995 City Policies vii ---- .. -- - - - I - - I Part I I I \. 1995 Policy Guidelines . . I I I . I -. . -- -- .-- - - IMPROVING COMMUNITY LIFE - CL-l. Liveable Communities - To the greatest extent possible, legisla- * prepare them for responsible J tion affecting communities at the state citizenship and federal level should enhance, not * enhance the enjoyment of life - diminish, the ability of citizens, busi- * prepare them for changing job . nesses, and local governments to work markets . together in partnership to make every I community "liveable." . participate in the decision-making process of community leaders PROBLEM: Cities in Minnesota are at I various stages in meeting the goal of . celebrate community being "liveable communities. " . want to make their home I SOLUTION: The defmition of a "liveable community" below will be . have access to: II used to evaluate proposed legislation * good paying jobs to determine whether or not it ad- * adequate and affordable housing vances the goal of enabling all Min- * choice of efficient transportation I nesota cities to become liveable com- systems including transit, munities. It should also be used by pedestrians, and bicycles cities to evaluate their progress to- * gathering places I ward the goal of becoming liveable * desired information communities. * choice of cultural and recreational activities I A LIVEABLE COMMUNITY IS: * affordable goods and services, including health care I WHERE PEOPLE OF ALL AGES . are involved in the nurturing of . share a core of common values children I including valuing diversity, respect for each other, and good citizenship . care about their homes, community, and the environment I . feel: * safe . get to know each other * a sense of belonging I * welcome . have the benefit of strong family ". support and nurturing adults . engage in life-long learning activities that: I 1995 City Policies 1 WHERE LOCAL GOVERNMENT - . is willing to respond to the needs of . is open and user friendly its citizens · encourages and practices - . is actively supported by enthusiastic cooperation and collaboration - volunteers · provides and maintains an adequate I infrastructure to meet local needs . ... I I I ,. . I I I I I I ... 2 League of Minnesota Cities I - - - - - - - I Part II I I' I 1995 City Policies . . I I I I .- A. I --------- ---- ---- General Policy Statement -. One of the most important purposes of for cities to meet challenges of the League of Minnesota Cities is to governing and providing citizens serve as a vehicle for cities to defme with services while at the same common problems and develop policies time protecting cities from and proposals to solve those problems. unfunded or underfunded - mandates, liability or other - The League of Minnesota Cities fInancial risk, and restrictions on represents 811 of Minnesota's 856 local control; and - cities as well as 10 urban towns and 24 - special districts. All sizes of 2. The fInancial and technical - communities are represented among the requirements for governing and League's members (the largest providing services necessitate a . nonmember city has a population of continuing and strengthened 149) and each region of the state is partnership with federal, state, I represented. and local governments. This partnership, particularly in the The policies that follow are directed at areas of fInance, development, \. specifIc city issues. Two principles housing, environment, and guide the development of all League transportation, is critical for the policies. successful operation of I Minnesota's cities and the weil- l. There is a need for a being of city residents. governmental system which I allows flexibility and authority I I I I . -, 1995 City Policies 3 , - -- IMPROVING SERVICE DELIVERY - SD-l. Unfunded Mandates Solutions: The federal and state I governments should not continue to Problem: The cost of federal and state pass laws regulating the private and I mandated programs substitute the public sector workplace without a full judgment of Congress and the President understanding of the consequences of and the Legislature and the Governor each proposal and sufficient . for local budget priorities. These safeguards for city taxpayers. mandates force cities to reduce funding for other basic services or to increase State and federal policymakers . taxes and service charges. should enact reforms which reduce city governments' personnel costs Solutions: and/or increase their ability to deliver . services efficiently. Specifically: · No additional mandates should be I enacted unless the funding for the . Eliminate or modify state mandate is provided by the level mandates such as veterans' of government imposing it or a preference and civil service which I' permanent stable revenue source restrict the ability of local is established. Cities should not governments to effectively be forced to comply with discipline public employees. I unfunded mandates. Specifically, no public employee should be entitled to more than · Cities should be given the greatest one review of a disciplinary I flexibility possible in implementing action, and no employee should mandates to ensure that their cost receive full pay for more than 14 is minimized. days pending their decision to I appeal a local government's proposed disciplinary action. I SD-2. Personnel . Modify public sector bargaining Problem: A wide variety of state and laws to restrain arbitration awards I federal laws have increased the cost of which exceed other internal class providing city service to residents by comparisons or outside cost of requiring city governments to provide living limitations. I certain levels of compensation, benefits, or working conditions and limiting city . Revise public employee pension I governments' ability to effectively laws to facilitate consolidation of manage their personnel resources. local pension plans and the .- 4 League of Minnesota Cities I ~ - transition to more attractive and . Permit fees and other cost transfer -- fiscally sound pension programs elements of federal and state such as dermed contribution programs do not provide an - plans. incentive for environmental agency I efficiency, policy prioritization, or . Fully consider public employers' risk assessment. financial and operational impacts I in any workplace legislation such Solutions: as health reform, public safety, and OSHA. . Cities should not be required to I comply with any unfunded mandate. SD-3. Environmental I Protection . Permit fees should be limited to fifty percent of the agency's direct I Problem: State and federal operating costs. environmental programs are improperly . A comprehensive effort to designed to meet their stated goals, and I impose an undue burden on local consolidate, reorganize, and governments because of a lack of manage state and federal ,. federal or state financial assistance. environmental programs should be The refusal to finance these programs required. by the governments which pass them I has eliminated an essential restraining SD-4. Absentee Voting feature in program design and implementation. I Problem: Absentee voting is overly Specific problems include: complicated and results in rejection of significant numbers of ballots, while I . Fragmented program adoption and adding to local administrative implementation does not ensure responsibilities. I prioritization of environmental matters or the establishment of Solution: Absentee voting comprehensive environmental procedures can be streamlined and I protection strategies. made more "user friendly." Adopting reforms proposed in the . "One size fits all" implementation 1993-94 legislative session will I programs force remedial efforts by increase the number of ballots local governments for nonexistent returned as well as the number that I environmental problems. are accepted. In addition, reforms will decrease current local .. administrative burdens and costs. 1995 City Policies 5 I - SD-5. Presidential Primary serving at the same location do Voter Desigllation likewise. Problem: Lack of voter interest and Solution: The legislature should anger over political party designation institute a nonpartisan method for requirements (to receive a ballot) have recruiting those interested in serving resulted in poor turn-out for the as election judges. presidential primary as well as - increased local election costs. SD-7. Local Government - Solution: The presidential primary Cooperation and Collaboration - is a political activity in which voters - indicate preferences for presidential Problems: Some of the most difficult candidates of major political parties. barriers to intergovernmental - Cities are not the appropriate level of cooperation result from geography, I government to take responsibility for demographics, and political traditions administering the balloting process. rather than financial considerations. In In 1996, cities prefer to see the state the past, fiscal and political pressures . conduct the primary using a have resulted in shifting responsibility statewide mailed ballot for which any for the operation and costs of programs I' local administrative costs will be fully to cities without funding. State compensated. In addition, the state policymakers have also often failed to should redesign the precinct voter give cities credit for their extensive I rosters indicating which political involvement in cooperative agreements party ballot voters select to safeguard with other units of local government to voter privacy and ensure accurate change responsibilities for funding and I recording of voter ballot selection. delivering services. Finally, the state should fully fund the presidential primary and, if Solutions: I necessary, charge major political parties whose candidates appear on The federal, state, and county I the ballot for an appropriate share of governments should: expenses incurred. . Communicate and establish a I process of negotiation before SD-6. Election Judges shifting responsibility for delivering services from one level I Problem: Requirements for local of government to another or election judge political party balance (at seeking to reduce service I polling locations) creates barriers to the duplication. effective recruitment of interested ~ persons to serve at polling places. · Transfer authority for use of Restrictions on parents-children-spouses revenues dedicated to such 6 League of Minnesota Cities I programs or provide appropriate agreements and other. - and adequate alternatives. intergovernmental collaboration. . Strive to improve services, reduce · Explore methods for improving costs, and encourage innovations services, reducing costs, and in the delivery of services. encouraging innovative approaches to overcome barriers to · Acknowledge that services intergovernmental cooperation. - delivered through cooperative agreements do not always result in The League should: providing the public with reduced - costs. · Encourage cities and other units - of local government to explore Cities should: opportunities to negotiate which - unit should be responsible to fund I · Initiate discussions with state and and deliver services or collaborate other local units of government to on service delivery when identify burdens for taxpayers appropriate. . resulting from overlapping services as well as opportunities . Provide technical and educational \. for cooperation and collaboration. resources and opportunities for cities to overcome barriers to · Document and publicize efficient reaching cooperative agreements I and effective service delivery, and/or consolidation with other including use of mutual aid local units of government. I IMPROVING LOCAL ECONOMIES I LE-l. Workers' local government taxpayers of I Compensation providing benefits to employees. I Problem: Minnesota's workers' Solutions: In cases where Minnesota compensation has been identified by is less competitive than neighboring I business advocates as one of the states with regard to workers' primary impediments to business compensation costs, the Legislature expansion and job creation in our state. should act to adjust benefits, regulate I Cities and their officials are concerned insurance companies, or take any .. about the system's impact on economic necessary action to put us in line with development and on the direct cost to neighboring states. 1995 City Policies 7 I - - · Minnesota's system can be made the city's boundaries regardless of more efficient and less costly.: the the existence of county or Legislature should act regardless township controis, in order to of our comparative standing. ensure conformance with city facilities and services. · The State Department of Trade and Economic Development should · state statutes regulating develop a plan to assist local annexation should make it easier development officials in addressing for cities to annex developed or the workers' compensation developing land within concerns of business people unincorporated areas which the considering location, relocation, annexing city has designated as a and expansion decisions. growth area. - - LE-2. Growth Management LE-3. Metropolitan Leapfrog - and Annexation Development - - Problem: Unplanned urban growth Problem: Urban growth is also . outside of ciry boundaries has a occurring outside the metropolitan I' negative environmental, fiscal, and governance area in a manner which governmental impact for cities, might have a significant impact on counties, and state governments. metropolitan systems, somewhat encouraged perhaps by growth I Solution: Further urban growth management controls adopted within the outside city boundaries should be metropolitan area. I restricted and the annexation of urban land to cities should be Solution: The legislature should facilitated. Specifically, the League study the impact of development I recommends the following: moving outside the seven county metropolitan . the preservation of natural area as a reaction to Metropolitan I resource areas and prime Council growth management agricultural land should be programs and require land use I encouraged and the development controls which reduce leapfrog of such land outside designated development. growth areas to be served by a I city should be discouraged. LE-4. State-wide Planning · cities should be given broader Policy I authority to extend their zoning, subdivision, and other land use Problem: A renewed concern about f" controls up to two miles outside urban development has resulted in a 8 League of Minnesota Cities I necessary review of the existing Solution: A state development -- framework for restricting or guiding strategy should be established by the development through local plans and Legislature and the Governor to controls adopted by local governments, promote job creation, redevelopment and has led some to suggest that the and prevention of blight and decay, answer lies in the adoption of a pollution clean up, and provision of comprehensive state-wide planning adequate housing opportunities. In a process. partnership between the state and cities, cities should be given the Solutions: The League believes that authority to locally implement the the existing framework for restricting state's development policy. or guiding development primarily - through local plans and controls - adopted by local governments should LE-6. City Cooperation With not be substantially modified, Counties and Schools in - however: Economic Development - . the state should provide additional - Problem: Counties and schools . fmancial and technical assistance frequently want to playa greater role in to local governments for cities' development decisions. ,. voluntary, cooperative planning and growth management issues. Solution: Cities should develop an . the state should clearly establish economic development strategy in I consultation with counties and the public purposes served by schools. The "review and comment" existing state-wide controls such as requirements of the current tax I shoreland zoning and wetlands increment financing law should conservation and fully defend and continue to be used to educate and I hold harmless any local involve other local governments and government sued for a "taking" as local legislators about proposed a result of executing state land development projects. Counties and I use policies. school boards should respond to overtures for evaluation and LE-S. State Development participation, and should take I advantage of all available Strategy informational opportunities. I Problem: The state has not clearly Because of the effect of decisions by acknowledged the valuable role cities counties and schools on city I play in developing and maintaining the development activities, these boards economic health of the state and the should also confer with cities .. financial risks cities take in these regarding their plans for capital and efforts. tax levy decisions. 1995 City Policies 9 I --- LE-7. LGA/HACA Penalties · Renewal and renovation districts for Using TIF should also not be penalized -- because they offer the best Problem: The LGA/HACA aid opportunity for proactive efforts penalties have resulted in fewer, to prevent blight and redevelop - smaller, cheaper, and less challenging decaying urban areas. - tax increment financing (TIF) districts . being created. Although the use of TIF . The phased-in penalty on generall y improves the state's tax base redevelopment districts restricts I and economic vitality, cities are now the ability of cities to address the penalized for trying to create jobs, problems of advanced urban redevelop decay, or clean up pollution. decay and blighted neighborhoods. I Solution: The aid penalty is punitive . TIF programs should be and should be eliminated. "But for" reauthorized for use on scattered- I tax increment financing, site housing development, redevelopment, redevelopment/rehabilitation. I pollution clean up, and housing creation would not have occurred and benefitted the state's economy. The LE-8. Restrictions on Revenue I' state does not impose the penalty on to Pay LGA/HACA Penalties qualified housing and hazardous substance subdistricts, and these Problem: There are many restrictions I penalties should be removed on all on the sources of revenue available for other districts. cities to use to pay the LGA/HACA I penalty that is imposed on most new . All economic development TIF districts. (manufacturing) districts should I be exempt because they are Solution: If the LGA/HACA penalty necessary to attract new jobs to is intended to reimburse the state for the state, and particularly to additional costs for the school aid I support the economic viability of program, state restrictions on the smaller rural cities. source of the "penalty" are not , appropriate. There should be no . Hazardous substance subdistricts limitations on the city's payment of and soils condition districts are the penalty; tax increments, , needed across the state to clean up developer participation, or other pollution to protect the state's sources should be eligible. environment and to create viable I development opportunities within developed cities and should not be LE-9. Economic Recovery ,- subject to any penalty. Grant Program Funding From I 10 League of Minnesota Cities - - LGA/HACA Penalty In addition, Minnesota counties support authorization for an Problem: The LGA/HACA aid abatement program. penalty is preventing many valuable - development and redevelopment efforts. . Information from the Minnesota - Pollution Control Agency (MPCA) Solution: If the state chooses to should be used to determine the - continue to impose a penalty for the remediation needs across the state . use of TIF, these local funds should to provide immediate guidance for I be contributed to the Economic the distribution of Contamination Recovery Grant Program. These Clean-Up Grants. The state funds would then be available for should commit the resources I cities across the state to retain necessary to address the pollution businesses in the state and to pursue that has been identified and business looking to relocate from acknowledge that this program I other states. offers the best opportunity for clean up of non-Superfund sites. LE-IO. State Funding for . The Economic Recovery Grant I Economic Recovery Grant Program should be given twice its ,. Program current funding and establish clear rules to govern its use. The Problem: The Economic Recovery state and federal funds that fund I Grant program is not adequately this program should also be funded. The state does not authorize an spread over the year to help adequate slate of tools for local ensure that projects across the I governments to assist job creation, state have access to the grants. redevelop blight and decay, and provide . The federal government should I adequate housing choices. Cities are not well equipped to compete nationally triple the current appropriation and internationally for business for the Community Development I development. Block Grant Program, and should simplify the application process Solutions: and reduce the paperwork I burdens. . Cities should be given authority for property tax abatements as · Congress should remove the caps I another economic development that have been placed on tool. The precedent for Industrial Development Bonds and I abatements has already been acknowledge that the extensive established by the "this old house" eligibility requirements now -. program, the contamination tax, adequately limit their use. and the enterprise zone program. 1995 City Policies 11 I - . - LE-ll. City Involvement with cable operators. Telecommunications Providers Problem: Deregulation of LE-12. Telecommunications as ~ telecommunications threatens to an Economic Development override local authority to govern Opportunity public rights-of-way within cities for private development of the "infonnation Problem: Telecommunications providers - superhighway" through neighborhoods may decide whether or not to serve the - and over city streets. needs of cities regardless of size and - location. This will restrict local economic Solution: Cities should have the development opportunities. . authority to require . telecommunication providers to: Solutions: I . obtain permits and follow local . Local businesses, schools and standards for the use of local educational institutions, and rights-of-way and property to lay government offices should have I wire, cable, or other facilities to access to information technology and services that meet technical I' carry voice, video, or data signals standards for signal quality at to locations within city corporate reasonable rates; boundaries; . Cities should identify how I . prohibit redlining and uphold infonnation technology can nondiscrimination standards in the strengthen local economic activity, provision of telecommunications education, workforce training, health I services at the local level; care, etc.; . support community access to . Local units of government should I voice, video and information work together to maximize effective services offered at the local level; use of infonnation technology to I assure that the local infonnation . design of the local tele- infrastructure can respond to the communications infrastructure to variet)' uf needs at the iocai leveL I meet community information needs, including community LE-13 . Local Permitting I programming services; Authority for Tele- . compensate cities for the use of communications I public rights-of-way from any Problem: City franchising authority is provider of telecommunication .- services, including telephone and viewed as a barrier to competition in the power companies, as well as local development of electronic information networks and telecommunications services. I 12 League of Minnesota Cities . Direct funding should be provided for establish a joint budget that would be -- smaller cities that are not provided with governed by a board of elected officials. turnback financing through the Cities that participated in this joint municipal state aid system. entity would not be required to undertake any formal consolidation activities. Cooperation Between - LE-16. Cities under 5,000 population that were Counties and Cities Over not eligible for M.S.A. through this - County Roads Within Cities cooperative agreement practice should - be able to use county municipal accounts - Problem: Some counties want increased and the five percent account of the contra] over county roads that lie within highway user distribution fund. W city boundaries. - Uses of countv municipal accounts Solution: A formal system of mediation should be statutorily modified so that . should be implemented to help resolve counties can dedicate these funds for technical and aesthetic decisions about local arterials and collector streets county and county state-aid roads within within cities under 5,000 population. In . cities. A negotiated system of review addition, the five percent set-aside will offer both governments the account in the highway user distribution ,. opportunity to produce better road fund should be used to meet this funding projects. Local city and county officials gap. should use available opportunities for alternate dispute resolution of the issues. I Universal arbitration by unaffected LE-18. State Aid for Urban parties should not supersede local Road Systems I authority. Problem: Current rules governing LE-17. State Aid for Roads in municipal state aid expenditures are I restricting the efficient use of these funds Cities Under 5,000 and do not adequately acknowledge the constraints of road systems in urban city I Problem: Cities under 5,000 population environments. do not receive any nonproperty tax funds fuz [heir coilector and aneriai streets. Solution: Rules affecting the municipal I state aid system need to be changed to Solution: State statute should be acknowledge the technical and practical modified to encourage cooperation and restrictions on construction and . improved transportation systems by reconstruction of urban road systems. allowing contiguous cities that jointly New municipal state aid design I represent a combined population of standards should not apply to 5,000 or more to be eligible for reconstruction of existing state aid Municipal State Aid (M.S.A.). streets that were originally constructed -. Participating cities would enter into a under different standards. Future formal joint powers agreement and changes to state aid rules should 14 League of Minnesota Cities I - =- can be dedicated to transportation Solution Current city franchising programs. Cities should receive - authority should be replaced in favor of revenues necessary to meet present and local permitting authority: future transportation needs. If funding I does not come from the state, cities . State and federal governments must should have funding options available to develop and enforce minimum them to raise the dollars necessary to I technical and connectivity standards adequately fund roads and transit. and rate regulation in the absence of competition; With the exception of funding for the I state patrol, all nontransportation . The state should license programs should be funded from a telecommunications providers to source other than the highway user I ensure they have the financial, distribution fund. The revenues of the technical, and legal qualifications to highway user distribution fund are provide proposed services; collected from transportation users and I should be dedicated to transportation- . The state legislature should develop related services. I legislation to protect cities' interests in the management of local public rights-of-way and restructure and LE-15. Turnbacks of County I' simplify the regulatory framework and State Roads for telecommunications service providers in the state. Problem: As road funding becomes I increasingly inadequate, more roads are LE-14. Adequate Funding for being "turned back" to cities from counties and the state. I Transportation Solution: Turnbacks should not occur Problem: Current funding for roads and without direct funding or transfer of a . for transit systems across all government funding source. A process of negotiation levels in the state is not adequate. and mediation should govern the timing, I funding, and condition of turned-back Solution: Minnesota should value, and roads. City taxpayers should receive the adequately fund, all transportation same treatment as township taxpayers. I systems in the state. The state needs to The requirement for a public hearing, provide an objective basis to determine the complete needs of the road and standards about the conditions of . transit systems, their present condition, turn backs, and temporary maintenance and their impact on the economic health funding should also apply to county of the state. This should include turnbacks to cities. At a minimum, . acknowledgement that delaying current proposed roads to be turned back to a expenditures wiII increase costs in the lower government level should be .- future. Cities support an increase in the brought up to the standards of the gas tax and urge the legislature to receiving government or should be institute additional revenue sources that compensated with a direct payment. I 1995 City Policies 13 improve the balance of elected officials LE-20. State Programs to -~ and engineering professionals in the Encourage Housing deciSion-making process. - Problem: State programs to increase the I LE-19. Tax Policies to supply of affordable housing outside central cities are not well funded. Encourage Housing I Solution: To encourage builders to Problem: State and federal tax policies provide affordable housing outside have, in some instances, limited central cities funding should be I construction of housing that is affordable increased for: to persons with very low and moderate incomes. . the Community Rehabilitation Fund I to assist cities to design programs to Solution: Tax policy should encourage meet the local need for affordable production and increase the supply of single and multi-family housing; I affordable housing: . the Homeownership Assistance Fund . remove the state sales tax on building to provide for down payments for low I materials for production of multi- and moderate income families to family rental housing units for which purchase their own homes; \. the Minnesota Housing Finance Agency and/or local housing and . technical assistance to cities to redevelopment authorities have analyze local housing conditions and I provided assistance; the need for incentives, set-asides or other methods to encourage . provide additional state funds to development of housing to serve I increase the supply of housing in employers contemplating business locations where the local housing real expansion or construction of new estate market discourages facilities and increasing employment I construction of housing to meet local opportunities; needs, including added funding for the state Affordable Rental Housing . credit enhancement assistance offered I Investment Fund; by the Minnesota Housing Finance Agency; . support federal Fair Market Rents I (FMRs) at a level sufficient to make . construction financing assistance to affordable rental housing widely encourage local lenders to participate available. in family housing development. I I .. 1995 City Policies 15 I - - - -- IMPROVING FISCAL FUTURES I Local Government Aid future city HAC A distributions. FF -1. . Problem: Despite the 1991 dedication of FF-3. Transfers of LGA/HACA sales tax revenue to the Local Government to Schools . Trust Fund, subsequem legislative actions substantially reduced the revenue available Problem: Past shifts of city LGA and . for increases in city property tax relief HACA to schools provided only imaginary programs such as LGA and HACA. relief from rapidly rising school property Although the LGA inflation index taxes. Any additional shift of city LGA . established by the 1994 legislature will and HACA will likely have a similar ensure modest growth in the LGA impact on future school property taxes. appropriation, it will only maintain the Also, new shifts will increase the tax rate . program at a constant dollar level. This disparities between cities and townships will not reverse the trend toward increased and irreparably damage the equalization city reliance on the property tax and rapid benefit of LGA and HACA. . property tax growth. Solution: Any increase in the state's Solution: The implicit price deflator share of school revenues should come ., index should continue to be used to from sources other than further maintain LGA at a constant, inflation- transfers from city property tax relief adjusted level. In addition, lawmakers programs. . should provide additional state resources for further increases in LGA to reverse the rapid growth in the FF-4. Levy Limits . reliance on the property tax. Problem: In the past, levy limits have FF-2_ HACA Growth proven to be an ineffective and inefficient . way to limit property tax growth. Control of property taxes through the local budget Problem: Homestead and Agricultural process and taxation hearings provides a . Credit Aid for cities does not increase as more effective method of oversight. the number of benefited properties increases. As a result, property tax relief Solution: Levy limits should not be . for new parcels is actually provided by imposed on city property tax~s. shifting taxes to other property owners. In . addition, the property tax relief provided through HAC A is not adjusted to keep FF-S. Levies on Market Value pace with inflation. . Solution: The household growth Problem: Applying new referenda levies to market value, rather than tax capacity, .- adjustment should be reinstated and an shifts the burden of these property taxes to inflationary adjustment similar to the homestead properties. LGA index should be established for . 16 League of Minnesota Cities ---- ~ - _n___ ~__.__ - - - Solution: All property taxes should be delinquencies. Penalties and interest are -- based on the tax capacity classification split evenly between counties and schools. I system. The statutes that require newly approved referenda levies to be applied Solution: Cities should receive their to market values should be repealed. pro-rata share of all penalties and I interest collected on delinquent property taxes. FF-6. State Deductions from I LGA FF-9. Reporting Requirements Problem: State administrative costs are I deducted from the LGA appropriation. Problem: Budget and tinancial reporting This reduces the property tax relief requirements imposed on cities by the state I provided by LGA and creates hidden often result in duplication and additional appropriations for state agencies. costs . Solution: All appropriations that fund Solution: Additional requirements for I state operations from LGA resources reporting and advertising fmancial and should be repealed. budget information should be carefully I weighed to balance the validity of the state's need for additional information FF-7. Payments for Services to with the costs and burdens of compiling ,. Tax-Exempt Property and submitting this information. In addition, all state agencies should be Problem: Taxable property in many cities aware of the information already . is being acquired by non-profit and required by others to avoid duplication government entities. Converting the of reporting requirements. property to tax exempt status can lead to a . serious tax base erosion without any FF-IO. Truth-in-taxation corresponding reduction in the service needs created by the property. Problem: The Legislature has mandated . Solution: Cities should be allowed to how property tax relief is calculated on tax . collect payments in-lieu of property statements. These calculations have no taxes or special assessments from non- relationship to actual local receipts for constItutionally exempt property owners. Homestead and Agricultural Credit Aid. . FF-8. Delinquent Property Tax Solution: In the spirit of real truth-in- . Penalties taxation, property tax statements should accurately reflect the actual amount of Problem: Although city finances are HACA benefiting each individual . property owner. affected by property tax delinquencies, cities do not receive any associated -. penalties and interest on these 1995 City Policies 17 . B U L L E T I N R .~-, (- .~~~ 1;' : ~ ro-, . \::::. - .., .-" , . Vt:'" , . DEe 2,:' 199" - \J Ii..... ~.: .t..,." ",-,.' December 19, 1994 - TO: Mayors and Managers/Administrators - mu'lU. Vem Peterson, Executive Director I .It. .................. RE: Vacancy on Association of Metropolitan Municipalities (AMM) - Board of Directors . There is a vacancy on the AMM Board effective January 1995. The person selected . to fill this vacancy will serve the balance of the term (five months) and will be eligible for re-election to a full term in May. The AMM Board is responsihle for the overall management of the AMM staff, approval of the annual budget and . ~ work program, annual dues schedule, establishment of yearly legislative policy priorities and appointments to the Transportation Advisory Board (TAB) and Technical Advisory Committee (TAC). The Board meets the second Thursday of . each month at 7:00 P.M. To maintain balance on the Board, the official to be selected should be from a . city under 10,000 population. In response to a previous mailing, nominations were received from larger cities but the Board believes strongly that the nominee should come from a smaller city and directed that another bulletin be sent to smaller cities . only. While preference will be given to elected officials, city managers/administrators !lcIT'i'!ees will also ~ considered. . ACTION REQUESTED; This is a request for nominations. The nominations should be in writing, . including a brief resume of the nominee, and should be sent to my attention. Nominations must be received no later than Thursday, January 5, 1995. . DISTRIBUTION NOTE: . This bulletin has been mailed to mayors and managers/administrators only. We ask that it be copied and disnibuted to councilmembers also. Thank you. .e 3490 lexington avenue north, st. paul, minnesota 55126 (612) 490-3301 . - ~ l~~e~i~) STATE OF MINNESOTA Ri. , '. '-',... ; L-\.." OFF[CE OF THE GOVERNOR . c~~f~~' 130 STATE CAPITOL '%~~'l~~<,i DEe 1 :, 799,,; SAINT PAUL 55 [55 ARNE H. CARLSON JI' ..1' "".,':,. "". GOVERNOR - TO: AFFECTED STATE LEGISLATORS, CLERKS, CITY AND COUNTY ADMINISTRATORS FR: JOSEPH R. KINGMAN, III, DIRECTOR OF APPOINTMENTS - DATE: DECEMBER 15, 1994 I SUBJECT: NOTICE OF METROPOLITAN COUNCIL VACANCIES - - Changes to legislation affecting the appointment of members to the Metropolitan Council have resulted in the terms of al116 council districts becoming vacant on January 1, 1995. I The Secretary of State's office has published these vacancies in the 1994 Annual Compilation ~I and Statistical Report. Local and regional Twin Cities newspapers have also been notified of these vacancies. This letter provides written notice of vacancy to the governing bodies of all counties, cities, towns and townships for each of the 16 Metropolitan Council Districts. I Qualified persons who are knowledgeable about urban and metropolitan affairs may obtain an application by contacting either the Governor's office or the Secretary of State's office. The application deadline is Friday, January 6, 1995. Applications received by the Secretary of I State's office by 4:30 p.m. on January 6 will be considered. A nominating committee composed of seven metropolitan citizens including three whom are , local elected officials within the metropolitan area has been created as required by state statute. The committee must conduct a public meeting to accept statements from or on behalf of persons who have applied or been nominated forappointlJlel1t am:HoaUow I consultation with and secure the advice of the public and localeJli!4ted officials. The public meeting will be held the evening of January 17, 1995 at th"MetropoIitan Couucil Chamhers in Saint Paul. Following the meeting, the nominatingcomn>>ttee.'Submits a list , of nominees to the Governor for this appointment. The Governor is not required,to appoint from the list of nominees. Before making the appointments, the Governor is required to consult with all members of the , legislature from the council district for which the member is to be a.ppointed. Appointments are subject to the advice and consent of the Senate as provided in section 15.066. . , Questions may be directed to Governor Carlson's appointments offIce at 296-3391. -, (612) 296-3391 - Voice AN EQUAL OPPORTUNITY EMPLOYER (612) 296-0075 ' TDO I (800) 657.3717 - Voice PRINTED ON RECYCLED PAPER CONTAINING 15%?OST CONSUMER MATERIAL (800) 657-359H - TOO s,'('ff,'-"75