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8. Update on Eurasian Water Milfoil, Water Resources CoodinatorCITY OF d CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 MEMORANDUM TO: Don Ashworth, City Manager FROM: Phillip Elkin, Water Resources Coordinator DATE: August 20, 1997 SUBJ: City Policy for Control of Eurasian Water Milfoil (EWM) Update The following list documents the city expenditures on milfoil since the program began in 1990. From 1990 to 1994, All calls regarding milfoil were directed to Parks and Recreation and to Public Safety. These departments referred the calls to the Minnesota Department of Natural Resources who were in charge of eradication efforts. Each Lake had it's own allocation of state money to spend on herbicide treatment supervised by the DNR. Once the State fund was spent, the DNR would then bill the City for any additional dollars spent on herbicide treatment. In 1995 th- DNR changed it's policy and let Cities, Lake Associations, Watershed district or any interested group decide how this money would be used for milfoil management. That year Chanhassen allocated a portion of the Storm Water Utility to established a Lake Management Fund (420). This fund would be used to produce lake Management plans Water Quality monitoring and other issues associated with lakes including milfoil management. Since the establishment of this Lake Minnewashta has been the only City Lake to receive money from the City matching the States' money. In addition to money spent on milfoil treatment, I have also included the cost of Surface Water Management Projects directly related to the recreational Lake's watershed, similar the projects proposed for lake Minnewashta. Some of these projects have been cdmpleted by Street ? department staff and many are still in progress. i♦ 08/20/97 Page 3 City Funds Spent on Milfoil Per Year 1990 $2,500 1991 $5,000 1992 $5,000 1993 $5,000 1994 $10,000 1995 Lake Minnewashta 1996 Lake Minnewashta $2,529.00 Funds Re- directed into Lake management fund $2,384.00 SWMP Projects Summary LAKE PROJECT COST Lotus Yuma Drive * $30,207 Lotus Ravine $21,911 Fox Path $2,570 Frontier Trail * $19,459 Chaparral Pond ** Chanhassen Pond Park outlet * $457 Lake Management Plan $9,430 $84,034 Minnewashta Lake Management Plan $9,430 1997 W.Q Projects * ** $129,870 est. Milfoil Match $4,913 $144,213 Christmas Curry Farms Pond ** $17,765 Pleasant View Road Ravine $41,117 Lake Management Plan $3,500 Holly Lane * ** $82,000 $84,382 Susan Lake Management Plan * ** $3,500 Powers Blvd. Wetland Restoration * $32,000 $35,500 z 4. 08/20/97 Page 3 Riley Lake Riley Wetland * ** $31,000 Lake Management Plan $9,430 $40,430 Ann Lake Management Plan * ** $2,500 Lucy Lake Management Plan * ** $2,500 * Design Cost - Construction Completed by Street Dept. ** Internal Design - Construction by Street Dept. * ** Still in Progress cost -to -date For the past three years the City of Chanhassen has contributed funds to the Lake Minnewashta Preservation Association for the purpose of controlling Eurasian Water Milfoil (EWM). The City' Surface Water Management Utility matched funds provided by the Minnesota Department of Natural Resources. This year, because the City was concentrating its efforts on water quality projects for Lake Minnewashta, I decided not to contribute to the Lake Minnewashta EWM program, because of the cost of these projects. Representatives from this association are not pleased with this decision and fear losing City contributions in the future. In addition to Lake Minnewashta, representatives from Lotus Lake, Christmas Lake and Lake Riley have approached the City asking for assistance in their EWM treatment efforts. Currently the City has no formal policy on contributing to lake association efforts to treat EWM. The only reference I can find to this practice is the attached memo to council dated June 24, 1994. The memo references a EWM fund, which is now the Lake Management portion of the City budget. This money from the Surface Water Management Plan is targeted for informational material for residents, lake management plans, and water quality testing. I have listed several concerns about continuing to operate in this manner: • The City drafted lake management plans for all of the lakes affected by EWM. None of the support suggested by these plans are being used. • As the DNR's contribution declines, lake associations will look to the City to make up the difference. • The City does not contribute to other homeowners associations for control of exotic species. • This policy is contradictory to recent efforts by the City to prevent the use of herbicide in other wetlands. 5. 08/20/97 Page 3 • Attempts to treat EWM in this manner are short term actions, that will use as much money that is thrown at it. • Constant use of herbicide kills native plants and does not give native plants a chance to compete with EWM. • Continued use of 2 -41) may affect the long term quality of lake water and its ecosystem. MnDNR The Minnesota Department of Natural Resources is the governing agency for any activities below the ordinary high watermark (OHW) for waterbodies of 10 acres or more. They have conducted public education programs and lake monitoring to raise awareness and prevent the spread of the weed. Surveys are conducted annually to find lakes infected with EWM. Once the a lake is found to have EWM, the DNR conducts its own eradication efforts by spraying infested areas with 2 -41). The DNR will continue this effort until EWM has been identified in 10% of the lake's littoral zone. At this point the DNR has determined that the plant cannot be eradicated and will stop chemical treatment to allow the weed to run its course. A portion of each boating license sold is put into a fund for EWM management. This money is set aside for lakes infested with EWM and divided to each lake depending on size. It is this money that the lake associations are using for EWM treatment. Status of EWM in Chanhassen Lakes Lake Minnewashta The Lake Minnewashta Preservation Association has been active in raising close to 520,000 annually for the past few years to conduct lake -wide applications of 24D. Lotus Lake EWM is a problem along the shore line to depths of approximately 4 feet, but because water clarity of the lake is so poor, it does not grow to the surface in deeper waters. A lake association has been inactive until last year, when they were approached by a consultant who offered to develop a milfoil plan for the lake. Since then, the group has been organizing efforts to combine individual property owner's treatments. Because milfoil is not a problem in areas eligible for DNR funding (see attachment), the only areas where DNR funds could be used are on public park property. Chemical treatment of EWM is not endorsed or permitted by City Parks and Recreation staff. r Lake Riley EWM has been a problem in the past, but in the last two years the lake has not been clear enough for EWM to be a nuisance. 08/20/97 Page 3 Lake Ann The DNR detected EWM near the public access in 1995 and has been attempting to eradicate the weed with applications of 2 -41) each year since. Christmas Lake Same status as Lake Ann. The lake has areas of EWM detected in 1995, which the DNR is still treating with hopes of eradication. Lake Lucy EWM has not been detected. Lake Susan EWM has not been detected. Rice Marsh Lake EWM has not been detected Recommendations Because there is no evidence that treating with 2 -41) provides long term eradication of the weed, I would recommend that the City discontinue providing money for this short term treatment program. This action does not prevent the individual Lakeshore homeowner from treating lake areas adjacent to their property, nor does it prevent associations from using MnDNR funds for treatment. I have included some options on how the City Council can act on this issue. Continue to match DNR funds on eligible Lakes • Continue to cooperate with existing programs • Identify high use areas to be treated • Require updated maps of areas treated each year • Conduct extensive plant surveys every other year to monitor affects on native species Discontinue to fund herbicide treatments • Fund plant inventories and water quality studies • Allow nature to take its course and learn to compete with EWM Set a limit on money to be spent by each lake for EWM treatment • All lakes given a set dollar figure for EWM management • Conduct extensive plant surveys every other year to monitor affects on native species • Require updated maps of areas treated each year g: \eng \phi Ili p \Adm in \M i Ifoilec.upd August 20, 1997 Ms. Nancy Mancino, Mayor City of Chanhassen Dear Ms. Mancino: I am contacting you and each of the Chanhassen City Council members with a concern regarding drainage at my residence at 8500 Great Plains Boulevard. Approximately two years ago I contacted Mr. David Hemple regarding an increase in water run off on my property with the Rottlund Housing Development at 86th and Great Plains Boulevard. Since the development of the farmland (which use to be across the street from me) into townhouses the run off has increased substantially. The run off has been directed into a ditch than then drains under Highway 101 and through a ravine that drains through my property INTO LAKE SUSAN. 1 have contacted the City of Chanhassen through Mr. Hemple at least ten (10) times over the past two years. I was told initially that Rottlund would clean up the debris that had washed on to my property. Nothing was ever done. In fact, I received a letter from Mr. Hemple indicating that there was to be a clean up of my property and that the job was to be signed off by the City of Chanhassen. This was, again, never done. I have been in contact with Mr. Hemple since May of 1997 because of a very deep crevice that has formed on my property due to the erosion from the run off. Mr. Hemple has PICTURES of the run off on my property which shows it to be a small creek when it rains. Not only is sediment and fertilizer from the Rottlund development going into Lake Susan, but my grass along the lake shore is filled with silt and sediment. Mr. Hemple has stated that (on 8/20/97)he had contact with MN DOT and nothing can be done. It is not their problem. He stated that the run off is "natural drainage ". I would ask you and every council member, would you like this "Natural Drainage" in your yard and on your property? My dilemma is that I continue to have silt and sediment pouring onto my property. The erosion has created a crevice 2 feet deep and continues to get deeper, wider and longer. I do not consider the roadway (86th street) and a new housing development to be "natural drainage ". The drainage has been altered and it has become a serious problem that Mr. Hemple and the city would rather ignore. This drainage has created a crevice in my yard that the children next door could fall into and possibly sustain a serious injury. I WOULD BE LIABLE FOR THIS EVEN THOUGH I HAVE NO CONTROL OVER THIS EROSION AND DRAINAGE. I implore you to please contact me at 934 -7794 so we can discuss this and find a satisfactory resolution. Please leave me a message if 1 am not at home. I need some help. As a taxpayer and Chanhassen citizen, I would appreciate a response. Thank you in advance. I look forward to talking with you and hopefully meeting you in person. Sincerely, `Dr. e 8500 Great Plains Boulevard 44 y ' • ° ' Chanhassen, MN 55317 934 -7794 19 � Nina Cottrell 8044 Cheyenne Avenue Chanhassen, MN 55317 612- 934 -5205 August 21, 1997 Mr. Craig Peterson Chairman of the Planning Commission Chanhassen City Hall 690 Coulter Drive Chanhassen, MN 55317 Dear Chairman Peterson: I attended the infonnation meeting held by Valley Auto Group regarding their intent to build a car lot next to the pedestrian bridge and I still have some concerns and some questions. My main concern is the safety compromised by drivers operating unfamiliar vehicles in a residential area, taking test drives through the neighborhood. Valley Auto Group representatives stated that they would not allow that to happen. I fail to see how they could prevent it. If a customer chose to do that, if an aggressive salesperson did not want to lose a sale, exceptions to "store policy" could occur. What recourse would Chanhassen residents have when we saw vehicles with dealership invoices on their windows test driven on our streets? To my knowledge there's no law or ordinance making a test drive on our public streets illegal. How would any of the restrictions agreed to by the dealership be enforced? The car lot representatives indicated they'd agree to no test drives in the neighborhood, to no public address system, to no bright lighting, to no tall lighting, and to no late hours. But what recourse would residents have if the car lot made exceptions, for a midnight madness sale, or searchlights for their grand opening or annual anniversary sale, etc.? They'd be disregarding an agreement, but not breaking any law. And even if we could get an ordinance against test drives in residential areas passed, would it be enforceable? Limited enforcement resources are needed for accident reduction on Highway 5, not patrolling side streets responding to complaints of test drivers so busy seeking the air conditioning switch in an unfamiliar vehicle that they fail to see the child on a bike, or one walking by the curb (we have no sidewalks in Chanhassen Estates.) Currently the land is not zoned for a car dealership. Please leave it that way . Y , AUG 22, 1997 City of Chanhassen Planning Commission August 21, 1997 Page 2 Before the public hearing on this, would you please send me a list of the types of businesses allowed there under the current law? And, also, a list of those allowed if the property were zoned to allow the car lot. If the dealership did get approval, zoning changed, etc. and then decided to sell out, I'd like to know what types of businesses would be allowed to buy it since it would no longer be zoned for neighborhood business only. 1 ask because Valley Auto is moving from Waconia, so we need to consider what will be there when Valley Auto chooses to move from Chanhassen. In addition to those two lists, I would like a copy of the staffing report once it becomes available. Thank you for giving this your attention. Sincerely, Nina Cottrell NC:pp '-'C'C: Chanhassen City Council August 11, 1997 Don Ashworth City Manager 690 Coulter Drive Chanhassen MN 55317 Dear Mr. Ashworth: An Equal Opportunity Employer Nuu 18 In,9/ Recent legislation requires all local units of government to be covered by ordinances regulating septic systems areawide, rather than just in shoreland areas. If a township or city chooses not to pass an ordinance, then the county ordinance prevails. In light of this, Hennepin County Community Health Department - Environmental Health is surveying all local governmental units in Hennepin County to assess their status regarding septic ordinances. Please complete the following and return to us by September 1, 1997. This will enable us to determine what our responsibilities will be regarding septic system regulation in the future. Do you currently have an ordinance regarding individual sewage treatment systems (ISTS)? Yes No (Please send a copy of that ordinance, if available). Do you intend to regulate individual sewage treatment systems and have your ISTS ordinance revised to current rules or in place by January 1, 1998? Yes No Thank you for your prompt response. If more convenient, you may fax this completed form back to us at 930 -2782. Sincerely, usan Palchick Supervisor cc: Community Development Director Community Health Department Environmental Health Management Group Recycled Paper 1011 South First Street, Suite 215 Hopkins, Minnesota 55343 -9413 (612) 930 -2770 FAX012) 930 -2782 p " �4 2 O O ®, 9 9 m 9 r �* o sO C\n t "TILE PLACE. TO GO FOR PLzkNTS TIIAT GROXVC YOUR "NATIONAL LANDSCAPE AWARD" WINNING NURSERY FOR DESIGNING & PLAM ING h City of Chanhassen Attn: City Council Members and Staff P.O. Box 147 Chanhassen, Minnesota 55317 Dear council members and staff, August 8, 1997 I am aware of some issues the City of Chanhassen has with Halla Nursery's compost site. These issues have surfaced on several occasions throughout the years and I would like to resolve them once and for all. I feel very positive about the Stipulation Agreement we recently reached and my hope is that we can sit down and work our differences on this issue as well. Since some of you may not be aware of what our compost site is, I will offer a brief explanation: The material we compost consists of dead plants and trees, weeds, sod, grass clippings, trimmings from plants and trees, soil and roots, etc... -- anything that came from the earth, will not harm the environment, or will decompose to become soil or humus. All of the material is produced or comes from Halla Nursery's business. We do not allow any dumping by anyone else --the site is exclusively for our use! The physical site where composting takes place is on the Outlot located furthest East of 101 and South of Pioneer. There is a large open area, a deep ravine and a pond. The pond was made by us in the early 1970's to collect runoff from our fields and provide a source of water for irrigation purposes. We have the pond stocked with fish and it is used as a recreational site as well. We have used this site for composting for over 27 years. The method of composting depends on the material. Items that will burn, such as brush clippings, branches, or dead plants, are piled separately and burned several times per year (we acquire a burn permit from the Fire Marshal prior to any burning.) Items that will not burn, such as root balls or sod, are composted above ground in the open area and /or pushed into the ravine. The issues as I am aware are two -fold: The first issue is whether or not current zoning allows us to have a compost site at all, and the second issue is whether we can push any of the composted material into our ravine. As long as we are in an agricultural business, we will produce agricultural waste —we need to dispose of that waste. I would like to establish a format for discussion and resolution of theses issues as soon as possible. I think we need to work out what is acceptable and under what conditions. I understand the importance of protecting our environment and our natural resources and I firmly believe nothing should be allowed that will cause harm to wildlife, people, or the earth —I also believe we can dispose of our agricultural waste in a manner that causes no negative side effects. n Since 1942 i MAI "LANDSCAPE DESIGNERS, CONTRACTORS, GROWERS" INC. TREE MOVERS & GARDEN CENTER 10,000 Great Plains Blvd., Chaska, Minnesota 55318 3 Miles South of Chanhassen on Hwy. 101 Phone 612 - 445 -6555 SHADE TREES • EVERGREENS • FLOWERING CRABS • FRUIT TREES • FLOWERING SHRUBS HEDGING • GROUND COVERS • FERTILIZERS LANDSCAPE CONSULTATION • INSECTICIDES • PRUNING • LARGE TREE MOVING INSURANCE CLAIMS • DESIGNING Page 2 of 2 Please advise me to whom I should talk or to set up a date to go before City Council with these issues. Sincerely yours {���� V4k . Mark D. Halla Halla Nursery, Inc. City Hall 501 Laurel Street >rainerd. Minnesota 56401 - nail CI BRAINERD MN US 4%� _=_jj MEMO two- .� . -ftw c� c� TO: MCMA Members Mayor ^� / /� (218) 828 -2308 FROM: Dan Vogt '�� Fax (218) 826 -2316 Attached will find two sheets showing various MCMA Committees and the (2,8)829 -9768 DATE: August 7, 1997 City Administrator Please look through each of the committees and find your name to determine which (218) 828 -2307 Fax (218) 828 -2316 SUBJECT: MCMA Committee Appointments Civil Attornev 220 Laurel Street PO Box 367 Attached will find two sheets showing various MCMA Committees and the (2,8)829 -9768 you committee assignments that have been made by me and ratified by the MCMA Board. Please look through each of the committees and find your name to determine which Criminal Attorney P O Box 631 committee you have been appointed to. You will note that the committee assignments (218) 828 -2311 Fax 1218) 829 -4730 have been made based on your committee selection made either at the annual meeting or in the request sent with your dues statement. City Engineer ( 218 ) 82 8-2309 I have att to assign you to the committee you have chosen. Some of you have P g Y Y Y 1 828-23 Faxiz,$)828 -23,s chosen more than one committee and your request has been granted. Chief of Police Law Enf orcement center If you have any questions or would like to change or withdraw from a committee 304 Laurel Street (218) 829 -2805 assignment, please feel free to contact me. Fax (218) 828 -9459 On behalf of the MCMA Board of Directors, I would like to sincerely thank you for Fire Chief volunteering to serve the MCMA through committee assignments. Fire Station 23 Laurel Street (218) 828 -2312 Fax(218)828 -2331 City Planner (218) 828 -2309 Fax(218)828 -2316 )irector of Parks & Recreation 1619 Washington Street N E �SSS (218)828 -2320 Fax (218) 828 -2791 Enc. Public Utilities cc: P O Box 373 (218) 829-8726 (Business) (218) 829 -2193 (Service) Fax (218) 829 -2308 Bob Barrett AUG 1 t 1997 Equal Opportunity Employer _'• Printed on Recycled Paper a 2 § �® ƒ- zƒ\UZk g§) § § j \�_jN az D�� �§/§i 0 - $)$ / 15� §7o,Z) /§ �$ » §)k� \�a 2§ 00 TZ \ /\ §\k}§\kj \0R \ \ < , �k z > ��m $ Z < i E??� /« & 4 a ƒz§»u L �( < c o § \§ \ §\ \j\ a 0> 0Po 0=3 § W u LL ©a 2 § �® ƒ- zƒ\UZk g§) § § 0 00U ° \�_jN az D�� �§/§i g $)$ / 15� §7o,Z) /§ �$ » §)k� \�a 2§ 00 §§/ \ /\ §\k}§\kj \0R \/ < , ƒTMOCOW (Lb /MOW § au } [ /) = o » w E (.9 \wzƒ2(z� 0 <_ �\ �7] \\ }j \jƒ j 0 _ » L I w , ƒTMOCOW (Lb /MOW \Z > ��m $ Z Q� c� 0 02± uƒ 2 4 a /2 ƒ57-02 &«\ L �2 <2w�Wm >zmm E E }_ ® Ot <<WOP�ow a 0> 0Po 0=3 \ < 0 $ } [ /) = o » w E (.9 \wzƒ2(z� \§ �\ �7] \\ }j \jƒ m /� _ » L I i§ k z §k ƒTMOCOW (Lb /MOW 0 '_j aI W92 YU) \ z 0 '_j aI » /&k z 9 »c 23 n �eIX jWR W ¢/ oj(L o <) >W> E ------------------- j> AAA - - - - -- < w § z \ L << woo < § z U �eW<Won § z j ?)�§g� z v 0 0w z w \§ q)� w � ƒ LL < \7 u mm< E E iR CL 2 § ® � zwoc IL z wz� y�I m = z �o EnN-< zz we®N� § )�M j $§ §§ < § § 04 §\} %Ez2\ \§$\ §b /ju 0< § 0 w \§}§ /jj\jk} \kj\ \ § w § z \ L << woo R k § z U �eW<Won § § q j ?)�§g� e \ MLLLL § z w \§ z�?I §$(k w § §} c § §o U) \ — D o-- - - -� -- w § z L << woo \ ) § ¥\ << e2c$iLL Ix < e z §a j7§S$W c § §o U) \ — D o-- - - -� -- UTC The Telecommunications Association U TC i INSIGHTS an exchange of insights by senior management on telecommunications and information technology issues Volume 1 • August 1997 From The Executive Director his is the first issue of UTC Insights. It is an experiment that I am conducting to try to reach senior management of the UTC membership on critical Telecommunica- tions and Information Technology issues impacting their core business. Instead of having the UTC staff prepare articles on issues that the staff believes are important, I am going to your peers and using articles or excerpts from talks which they have presented at conferences. This first issue contains two articles which were originally presentations at UTC conferences. One article is by Harvey Parker, CEO of United Energy, serving Melbourne, Australia. It deals with the expansion of his company into the telecommunications market in Australia. In his paper, he makes two strong points: (1) rely on core capabilities, and (2) minimize business risks through partnership with other industry players. It is interesting to note that he is of the view that even though his telecommunications competitors will slash their margins in an attempt to outprice his company, his company can still offer a business user a more attractive overall package when cheaper power is added to the deal. His margins remain intact! The second article is drawn from a wel- coming address by John MacFarlane, President and Chief Executive Officer of Otter Tail Power, at one of UTC's regional conferences. In it, he focuses on the matter of deregulation or "customer choice," how the communications area within utilities will fare under such a regime, and the impact of the Telecommunica- tions Act of 1996 on opportunities for utilities. In his presentation, he asserts his views on how utilities will be unbundled along functional lines, and, importantly, notes that most, if not all, new operating companies will need com- munications services which are currently fur- nished by utility internal communications departments. He points out that the long -term well -being of such departments will be deter- mined by their ability to provide communica- tions service at better quality and more cost effectively than any other source. Regarding the matter of deregulation or "unbundling" of utility functions, late in the summer of 1996 it became apparent to me that a number of UTC's members had begun to "unbundle" or "restructure" their operations. A preliminary survey of management level per- sonnel from some of the key UTC members revealed that these managements also recog- nized that the new, unbundled business units, be they GenCo, TransCo, DisCo or Marketing, will all have different telecommunication requirements. With regard to the question raised by John MacFarlane as to where the communication function should be lodged in a restructured organization, some felt, as he does, Inside This Issue UNITED ENERGY: A Power Utility's Expansion into Telecommunications 3 Deregulation, the Telecommunications Act of 1996 and Utilities E;3 that it should be within an "administrative" unit of the utility. Others felt that they should form separate subsidiaries which offered services not only to the utility and its subsidiaries, but also to third parties. In any event, when it became apparent that UTC should be taking action to meet the varied telecommunications require- ments of those members that were going through some sort of restructuring or unbundling, we decided to form a new, execu- tive level (vice presidential) "Operational Strategies Division." The purpose of the Operational Strategies Division is to provide management level guid- ance on the Telecommunications (T) and Information Technology (IT) related business and government issues facing those UTC mem- bers that are undergoing some form of restruc- turing or unbundling. I suggest that the benefits for UTC mem- bers that are active in the Division include: Through the exchange of ideas with peers from other UTC member organizations, execu- tives will be able to develop a better awareness of and focus on: 1) The strategic importance of internal T and IT operations in the restructured envi- ronment as critical tools ensuring reliabili- ty, delivery of customer service and mainte- nance of power flows. 2) T and IT business and regulatory issues that must be addressed to ensure that T and IT operations will provide these same ben- efits after restructuring. Some of these issues include: • How will companies divide T and IT assets among business units? • How will staff be reallocated to run new T and IT operations? • How much customer information - database use can, or must, be shared with other business units of the utility and potential competitors? • When and what types of regulatory requirements will be placed on "bundling" of T and IT services with electric service? 3) How T and IT resources and operations will serve new strategically important func- tions related to service differentiation, cus- tomer retention, branding, open platforms, transparency and the provision of new cus- tomer services after restructuring. As to time and money, a member compa- ny's commitment should be minimal. There will be no travel. All work will be by a limited number of highly structured telephone confer- ence calls, correspondence and e -mail. We have formed a cadre of interested exec- utives from member companies which include Basin Electric Power Cooperative, Boston Edison, Southern Company Services and TeCom, Inc., the telecommunications sub- sidiary of TECO Energy. The cadre is develop- ing an information package to be sent to man- agement level personnel in the UTC member- ship to educate them on the role of the Division and to recruit their participation. This informa- tion package will include an executive summa- ry and matrices which highlight the role that T and IT operations will play as critical tools, and will raise some of the business and regulatory issues that must be addressed. The information package will be ready for distribution to UTC members in mid - August. I need your feedback. Please complete the brief fax -back survey on Page l l to let me know if you like the experimental approach of this newsletter and if you would be interested in receiving more information on the Operational Strategies Division.A — Mike Meehan UTC Executive Director 2 UTC INSIGHTS • VOLUME I AUGUST 1997 UNITED ENERGY: A Power Utility's Expansion into Telecommunications by Harvey Parker Chief Evecutire Officer United Energy I want to start by sharing a little about the history of Australia as articulated by Dr. Tim Flannery, Head of the Australian Museum in Sydney. Until 60,000 years ago, the Australian landscape was dominated by large tracts of rain forest. However, with the arrival of the Aborigines, a whole suite of animal species which maintained the rain forest balance were eaten —these were large animals, slow - moving, slow- thinking and easy food for the new arrivals. Maybe that describes a Telco, but perhaps it also describes electricity utili- ties. We will have to wait and see. Back to Australia. Because there were no longer animals to eat up the rain forest leaves when they fell to the forest floor, the leaves built up, causing massive forest fires which wiped out the rain forest trees which were not fire resistant. What followed was the increas- ing dominance of fire in the Australian land- scape and a climate shift toward greater arid- ity. I Editor's Note: This article is drawn from a pre- sentation at the UTC International Conference, "Global Telecommunications Opportunities: A Utility Perspective" held at the Holiday Inn Crowne Plaza, Manchester, UK, on April 23, 1997. Meanwhile, sitting off on the sidelines was a relatively small group of trees called the eucalypts. What characterised these trees were their drought- and fire- resistant quali- ties. When the environmental circumstances changed, the eucalypt was in a position to fill the vacuum and become the tree which dom- inates the Australian landscape today. The eucalypt's quiet adaptation to living in and and fire -prone environments had positioned it perfectly to take advantage of a significant change in the environment. The events of 50,000- 60,000 years ago are relevant today because they provide an appropriate metaphor for the process that United Energy, and many other power utili- ties around the world, are going through right now. After more than 70 years of quietly set- ting up electricity generation and distribution networks, power utilities are witnessing a sig- nificant change in their environment. This change opens the way for them to apply their well - practised skills on a broader field. For more than 70 years, the State Electricity Commission of Victoria held a monopoly for the generation, transmission and distribution of electricity to the entire state of Victoria. Over this period, it built up a huge range of skills and strengths. After the SEC's privatisation in 1993, these skills and strengths were passed on to the distribution companies that were set up in its place, of which United Energy was one. This legacy is the foundation stone of United Energy's ability to take advantage of recent changes in Australia's business environment. In broad terms, United Energy's ability to supply telecommunications services stands on five legs: • Technical Expertise • Established Infrastructure • Large Customer Base • Billing Systems and Expertise • Customer Call Center UTC INSIGHTS • VOLUME I AUGUST 1997 3 For more than 50 years, the SEC's elec- tricity transmission operations have made use of a communications network that spans its entire transmission area. This network was used to provide protection and control, fault testing and network security. In later years, the regulations loosened to allow the SEC to run internal voice and data communications. The network comprised underground metal cables, overhead optical fiber cables and radio links. Thus, built up within the SEC, were decades of experience in installing and oper- ating a wide range of telecommunications networks. This experience now forms the core of United Energy's Telecommunications Division. In addition to the telecommunications engineers, United Energy has also gained the services of many of the SEC's electrical engi- neers. The similarities between electricity transmission networks and telecommunica- tions networks are many. Electrical engineers deal with concepts such as traffic volume and transmission capacity every day of their working lives. They are thus well- equipped to handle telecommunications operations in the field with minimum retraining. In addition, United Energy possesses a large but crucial semi- skilled workforce who can perform repairs and installations in the field. Again, their prior electricity experience stands them in good stead to expand into telecommunications operations. United Energy has 17,000 km of power - lines, 171,000 power poles, 41 zone substa- tions and other sites in Eastern and Southern Melbourne. It also has access to an optical fibre loop around the Melbourne metropoli- tan area. When this baseline infrastructure is added to that supplied through our partner- ships and alliances, we have access to both local optic fibre loops and inter - capital opti- cal fibre links. In infrastructure terms, United Energy is capable of an almost overnight maturity into a direct competitor with the incumbent carri- ers in Australia — Telstra and Optus. Within our distribution area, which cov- ers some 1,500 square kilometers, we have around 50,000 business customers and 500,000 residential customers. These cus- tomers represent a home -grown opportunity for United Energy to grow into a telecommu- nications provider. We already have a rela- tionship with them as power providers and our work to date suggests that they are look- ing for the convenience of having a one -stop shop for both power and telecommunications. Because we have these customers, we naturally have had to develop competencies in the management of billing and charging systems. We have also expended a lot of ener- gy in developing a call centre of world -class standard that handles around 4,000 calls and inquiries a day. These are the sort of capabilities that can carry on virtually unnoticed and unexploited for generations and then suddenly, with a shift in the environment, they become com- petitive dynamite. Having billing and cus- tomer service competencies already in place in the company means we can readily take on the challenges of bill integration, expanded customer bases and so forth. So thanks to our background, United Energy is well - equipped to provide telecom- mumcations services. Importantly, we are well - equipped to pro- vide these services with the addition of only small incremental costs. But what have been the changes in the business environment that have allowed us to convert these resources into an operational business concern? Throughout the Western economies, gov- ernments have moved strongly toward a hands -off approach to business. They have withdrawn from public ownership and relaxed regulations that maintained monopo- 4 UTC INSIGHTS • VOLUMF: 1 AUGUST 1997 lies and restricted competition. This has opened the way for companies of all persua- sions to apply their expertise and their imag- inations to reposition themselves in new busi- ness areas. For instance, in Australia's deregulated banking environment, banks are now able to offer superannuation and home loan compa- nies offer a full range of personal banking services. For United Energy, the effect of deregula- tion has been to release us from a defined and closely controlled business environment to one which demands focus on real cus- "Even though our tomer services and municationS the opportunity of will slash the convergence. The dismantling an attempt to of the SEC monop- we can still o oly freed the distrib- a more attrae ution companies to package when provide services power is adde beyond their tradi tional areas of oper- —and our m ations. Meanwhile, intact. With t the erosion of of adding gas Telstra's monopoly Our portfolio, over telecommuni- clearly a stron cations and the full deregulation on I July 1997 have created the opening that United Energy needs to move into this rapidly expanding field. The barriers to competition in Australia's telecommunications market have been com- ing down for 7 or 8 years now, albeit slowly. The installation of Optus as a second carrier in 1991 and the emergence of other mobile telephony and telephony reseller companies such as Vodafone and AAP Telecommunica- tions set the competitive focus firmly on the delivery of voice services. We expect more players to enter the market later this year. But despite the intense competition we expect to see after 1 July, the opportunities comp it m out ffer a tive the d to ma he p and our will still be there if you can get your price right. Telstra is still `fat' and the cost of down- sizing great. Optus and Optus Vision have spent heavily on massive infrastructure pro- grams. By contrast, United Energy is a mar- ginal cost player with our infrastructure and that of our partners behind us. This puts us in a favorable position to seek out niche markets and be a price leader in those markets. We certainly do not have aspirations to take those giants head -on. But in such a large market that telecommunications represents, even crumbs are very nice. telecom- Just in the traditional etitors area of telephony, Telstra argZnS in connected close to 15 bil- lion calls in the past year. price us, Also, Australians are business among the most enthusi- overall astic adopters of new aper technologies in the world. the deal The high uptake of per- sonal computers is s remain already bringing with it a Ossibility huge demand for multi - water to media services and inter - I and is net connections. g one." It is said that nature abhors a vacuum. Over the centuries, naturalists have observed that there is a relentless drive to fill every niche in nature and when a giant tree falls in the for- est, suitably adapted plants and animals move in to claim a piece of the vacant space. The opening up of markets under deregulation has created just this sort of vacuum and we are naturally keen to place our roots in the fresh- ly opened ground. Having the core competencies required to take advantage of the new business environ- ment is one thing— making it all come together is quite another. The strategy United Energy is adopting to establish itself as a viable niche player in the telecommunica- ATC INSIGHTS • VOLUME 1 AUGUST 1997 5 tions marketplace involves three major com- ponents: • Reselling telecommunications services to business and residential customers • Providing data services to business cus- tomers • Powerline Technology- related products. All three tiers are based on the same underly- ing principle —to minimise business risk through partnerships with other industry players. The reseller business is really only the first stage of this process. It aims to establish our credibility within the business and resi- dential marketplaces as a provider of telecommunications services. At this stage, we are reselling telephony —long distance, international and mobile —as well as internet connections. Our services are promoted through carefully targeted advertising cam- paigns. For example, we've developed an electri- cians' campaign, which offers a mobile phone package to electricians in small busi- ness—a logical step for an electricity utility. Another campaign will target plumbers while another for small businesses bundles electric- ity and telecommunications and provides an overall discount based on volume usage. We are able to make these offers because of partnerships with carriers and service providers. Specifically, our partnerships with Vodafone and Nokia enable us to offer extremely competitive rates for mobile hand- sets and mobile telephony services as well as a host of other frills that fill out the offer. At the same time, another partnership with the Internet service provider, Connect.Com, allows us to include an Internet directory ser- vice. For the resale of long- distance and international calls we have forged a partner- ship with AAP Telecommunications. They are currently Australia's largest reseller and will become a carrier after 1 July. AAP Telecommunications' extremely competitive rates are allowing us to offer calls up to 30% cheaper than Telstra's card rates. We are presently negotiating with Telstra to resell their local telephony service. Clearly, this suite of partnerships is cru- cial to our reseller operations. Because we simply on -sell these suppliers' services, we expend nothing on capital and our recurrent expenditure is capped to the level of demand. This packaging of services also provides a glimpse of our ultimate product goal —to bundle electricity provision with the full - range of telecommunication services and pro- vide the customer with a single bill for the lot, including a discount on both telecommu- nications and electricity. There are clearly many steps to be taken along the road to this goal. It also provides the opportunity for us to hone the workings of our newly established business partnerships and iron out any wrinkles. With our strategy so firmly built around our partners, the establishment of goodwill right from the outset cannot be underestimat- ed. The second stage of our strategy is the provision of data services to business cus- tomers. Here we will become a licensed telecommunications carrier. Compared to the hotly - contested voice telephony market, the data services area offers much greater room for lucrative margins. Again, the strategy is the same. We will use our own infrastructure plus that of our partners to minimise our capital spent, allow- ing us to set highly competitive prices while maintaining healthy margins. But in the busi- ness market, United Energy's key competi- tive advantage lies in the bundling of services and our ability to offer discounts on electric- ity as well as telecommunications. For medi- um to large businesses these can add up to enormous savings. Even though our telecommunications competitors will slash their margins in an 6 UTC INSIGHTS • VOLUME 1 AUGUST 1997 attempt to outprice us, we can still offer a business a more attractive overall package when cheaper power is added to the deal — and our margins remain intact. With the pos- sibility of adding gas and water to our portfo- lio, our hand is clearly a strong one. The first two tiers of this strategy basical- ly allow us to gain leverage in existing mar- kets using established infrastructure and tech- nology. But it is the third tier, the application of Power Line Technology (or PLT) that gives us a chance to really revolutionise the game. In addition to opening up power lines to telecommunications traffic, new PLT applica- tions like smart metering, energy manage- ment and home security have the potential to completely transform the sort of products a power utility like United Energy can offer. Recognising this, we are currently under- taking an R &D project aimed at piloting PLT - related products with our own distribution area. Once the technology is established there, we will look toward applying it throughout the country, again through part- nerships with our sister electricity distribu- tion businesses. We have already commenced discussions with power utilities in Melbourne and the other capital cities with the aim of forging a national alliance. Such a team of power utili- ties, all armed with the sort of competitive advantages United Energy possesses, would be a considerable strength in the Australian power and telecommunications markets. It would also be the perfect vehicle for the pro- motion of PLT - related products throughout Australia. Work has commenced on all three tiers, with the first customers of the reseller busi- ness having already come on board. With the partnership with AAP Telecommunications already in place, United Energy has the sort of critical mass which allows it to bid direct- ly against the incumbent carriers for the cus- tom of small- and medium -sized business. As alliances with other power utilities and other infrastructure access providers begin, we will be able to extend our marketing activ- ities and move toward a fully national approach to winning customers. The clear message in Australia at present is that the current telecommunications mar- ketplace is more talk than action. After 1 July, we expect to see a change. Businesses, especially small- to medium - sized enterprises, have been promised signif- icant cost benefits from competition. They are yet to materialise. There are strong opportunities to beat the pricing regimes of Telstra and Optus and still provide a solid return to United Energy and its partners. Let's revisit the eucalyptus analogy for a moment. United Energy is a new tree on the block. The circumstances for growth are highly favorable and this is the time for set- ting down roots. These roots, built from internal competencies and effective partner- ships, will support us during our sapling stage and ensure rapid access to the nutrients we need to become an effective third force in Australian telecommunications. As cus- tomers and cash flow start to run up the stem of new enterprise, I expect we will see new partners join us and what starts out as a sin- gle tree will, in a relatively short time, become a forest. But growth will be safe and firmly within our control. Because we will use our own infrastruc- ture and that of our partners, we won't be weighed down by huge start-up investment commitments. Our costs are low, so our returns can be high. This is the vital strength that sets us apart from our competitors. I have no doubt that the circumstances which led to the triumph of the eucalypts in Australia 60,000 years ago are being repeat- UTC INSIGHTS • VOLUME 1 AUGUST 1997 7 ed in the commercial environment right now. While the challenges are many, the opportu- nities are equally in evidence. I am certain the promise of a new force in telecommunica- tions in Australia will be realised.A 1 Source: "The Future Eaters - A Biological Histon of Australia b Ur. Tint Flannery, Head of the Australia Museum in SYdnec. Deregulation, the Telecommunications Act of 1996 and Utilities by John MacFarlane President and Chief Executive Officer Otter Tail Power Cornpanl T his discussion focuses on two compelling issues. The whole matter of deregulation or customer choice and how the communications area within utilities will fare, and the Telecommunications Act of 1996 and opportunities for utilities. First, let me address the issue of deregulation and the fate of utility communications func- tions. Will they continue to be done internally? Will they be outsourced? What will be their fate? It's a hard question to answer and to a large degree depends on how deregulation unfolds, company needs and the quality and capability of the resident communications department. The debate on deregulation is still ongoing. There are a number of bills in the current con- gress with different ideas as to the timing and form of the industry of the future. Most like- ly, the second session of the current congress will come up with some legislation in 1998. It will in all likelihood require customer choice by a date certain. My sense is that the date will be in 2003 or 2004. At that time, states will be required to act to comply with the legislation. Experiments are underway in some parts of the country with various segments of deregu- lation. There has not been much activity in this area for a couple of reasons. First, we are in an area of relatively low electric rates and consequently large customers have concentrated their efforts where rates are the highest and potential savings are the greatest. Second, the not - for - profit segment of the industry generally does not favor deregulation and to their cred- it have powerful political allies who will slow the process. Eventually, I think existing utilities will be unbundled along functional lines. Probably, there will be a generation company, which will be unregulated and will build, own, operate and maintain generation equipment and sell the output into a competitive marketplace. A transmission company, which will be federally regulated, will build, own, and maintain transmission lines and substations. Their facilities will likely be part of regional transmission 8 UTC INSIGHTS • VOLUME 1 AUGUST 1997 grid and be operated by an independent system operator. This independent system operator will ensure that transmission facilities will not be used to limit access to customers. A distri- bution company, regulated by the state, will build, own, operate and maintain the distribution system from the transmission substations to the individual customers. There will be an ener- gy service company, which will be unregulated and will interface with the customer to pro- vide, at a minimum, electric service and possibly some other services such as natural gas, telephone, cable TV, etc. Finally, there will be an administrative company, which will provide administrative services such as accounting, information services, human resources and possi- bly engineering and communications services to the other segments of the business. The system would work something like this. The energy service company will arrange for electric service to a number of customers. They will then purchase the energy and capacity necessary in a competitive market from a generation company, not necessarily an affiliated generation company. The energy service company will arrange with the intervening trans- mission and distribution companies to move the energy from the generation company to the customer. Finally, they will contract with an administrative company to provide services which can be best and most economically provided external to the energy service company. "Most, if not all, of the new operating companies will need communications services which are currently furnished by utility Communications departments. Arguments could be made for its location in several of these companies, but my sense is that it would probably fall into the transmission or administrative company. Its long -term well -being will be determined by its ability to provide communications services, at better quality and more cost effectively than any other " source. Getting back to the question of the communications area. Most, if not all, of the new oper- ating companies will need communications services which are currently furnished by utility communications departments. Arguments could be made for its location in several of these companies, but my sense is that it would probably fall into the transmission or administrative company. Its long -term well -being will be determined by its ability to provide communica- tions services, at better quality and more cost effectively than any other source. When dereg- ulation takes place, most companies will use a phase -in period where services must be pur- chased from the affiliated companies to allow them to establish themselves and become com- petitive. As for the Telecommunications Act of 1996 and how electric utilities might react —are there opportunities for diversification? The Act did a number of things. It forced local telephone companies to open their networks to competition, giving consumers choice of local phone carriers. It allowed local telephone companies like U.S. West to offer long- distance service, UTC INSIGHTS • VOLUME 1 AUGUST 1997 9 which they had been barred from doing since the 1984 breakup of the Bell network. Cable TV rates were deregulated and cable companies were allowed to offer new services, includ- ing telephone and Internet. Media companies were allowed to own as many TV stations as they wished —the old limit was 12 —and they were also allowed to reach up to 35 percent of the market. Radio station owners were able to accumulate more stations and control up to 40 percent of the market. Finally, there was language aimed at cleaning up the Internet and TV programming. What does this mean for the utility industry? They can lease the infrastructure of local tele- phone companies to provide telephone, cable TV, Internet or related services to customers. This option is attractive since electric companies already have a communications system in place to move date and voice traffic within their service area. They already have a reputation for reliable service and often are more accessible and friendly than telephone and cable TV companies. Also, in many cases they are looking to diversify and somehow believe that since they have a wire to the home they should be able to perform functions that others with wire to the home are already doing. Finally, as mentioned, they now have available all the physi- cal facilities either owned or leased to get into the business. We have in fact seen the entrance of electric utilities into cable TV and communications. There are some things which are slowing the entry. Most electric utilities are concerned about the coming deregulation and competition and are attempting to improve efficiencies rather than look for new businesses. Second, resident communications staff have a real work- load with FCCIPCS frequency replacements and other issues. Third, while utilities possess the technical expertise and some of the facilities and now can lease the remaining pieces, they don't have the customer service and billing processes in place, rates for leasing and the ability to attract customers are unknown at this time, and telephone companies are good at what they do. Finally, there are some universal service fund questions that must be answered before service to rural areas becomes feasible. The opportunities are there, but whether a utility involves itself in this business or not is dependent on the answers to a number of rather complex questions.A Editor's Note: This article is drawn from welcoming remarks delivered at UTC's Minnesota - Dakotas Regional Meeting in Alexandria, Minnesota, on May 13, 1997. 10 UTC INSIGHTS • VOLUME 1 AUGUST 1997 Reader Survey Please take just a moment to complete the following survey and fax it back to UTC. 1. Would you like to see more issues of UTC Insights? Yes No 2. On what topics would you be interested in hearing from your peers? 3. Would you be interested in providing an article for LITC Insights? If so, please jot down a brief description of your ideas and complete the Respondent section below so that we can con- tact you for future issues. 4. Are you interested in receiving information about UTC's Operational Strategies Division? Yes No If so, please complete the respondent information below to let us know where to send the information packet. If someone else in your company should receive it, please provide us with their information. Respondent Information (Optional) Name: Title: Company: Address: City/State/Zip: Countrv: Phone: Fax: E -Mail: Fax the completed survey to UTC Insights at +1- 202 - 872 -1331. UTC INSIGHTS • VOLUME 1 AUGUST 1997 11 !'jL.JTC Ttte Te ns Association 1140 Connecticut Avenue, NW Suite 1140 Washington, DC 20036 USA Tel: +1- 202 - 872 -0030 Fax: +1-202-872-1331 UTC Insights is a quarterly newsletter committed to the exchange of insights by senior management on telecommunications and information technology issues. Editor: Nancy Thompson Questions, comments or suggestions for articles should be sent to: Editor, UTC Insights, c/o UTC, The Telecommunications Association, 1140 Connecticut Avenue, NW, Suite 1140, Washington, DC 20036 USA; Tel: +1 -202- 872 -0030; Fax: +1- 202 - 872 -1331; E -Mail: nthompso @ute.org; Website: www.utc.org. © Copyright 1997 by UTC, The Telecommunications Association. All rights reserved. 1+ i � r t r 12 UTC IN SIGHTS • VOLUME 1 AUGUST 1997 LMC . League Minnesota Cities lt e s Cities p exceiience Number 26 111leti August 13, 1997 Flood relief update Ann Higgins The Governor's Flood Recovery Council, headed by Minnesota Com- merce Commissioner David Gruenes, has recommended that state govern- ment provide $124 million in flood re- lief to help localities and residents re- cover from devastating losses due to flooding earlier this year. East Grand Forks Mayor Lynn Stauss, Montevideo Mayor Jim Curtiss, and Granite Falls Mayor Dave Smiglewski served on the council, along with Breckenridge Vice - Mayor Ralph Possehl. The new fund- ing, if approved by the Legislature, will add to the $24 million the 1997 Legislature initially appropriated for flood recovery assistance. The proposed, $124 million flood relief recommendation would provide: • $34 million for infrastructure repair and improvements; • $37 million for flood prevention and mitigation; • $14 million for construction of new housing and rehabilitation of dam- aged homes; and • S8 million for no /low interest loans and other incentives for affected business. The council's recommendation will address urgent needs that cannot wait for consideration by the '98 legis- lative session. These recommendations will be presented to a special legisla- tive session on flooding issues tenta- tively scheduled for August 19. Ac- cording to Governor Carlson, the pro- posed flood relief package recom- mended by the Flood Recovery Coun- cil is also expected to provide aid for needs which federal disaster programs will not be able to meet. For instance, state funds would be available to buy out ruined homes that are not in flood plains. Proposals include waivers to existing low - income grant and loan programs to allow resources to more accurately meet local needs. Residents of flooded communities would be able to get help for new single - family homes, as well as for multi - family rental housing. These funds would supplement grant and loan assistance for home financing or business grant and loan programs. The council has also recom- mended strengthening flood prevention and mitigation efforts by improving public infrastructure. The state flood relief package will also provide 100 percent of the state and local match for FEMA public assistance, le- veraging another $150 million in fed- eral infrastructure repair and replace- ment assistance. A proposal to spend $5 million for hazard mitigation would add to $4 million in DNR bonding to buy -out ruined homes, and would match $37 million in federal and $4 million in local costs to purchase damaged homes in flood plains. An- other $5 million would be provided for flood proofing public buildings and other facilities, although total need in this category has not yet been documented. The council's recommendations also include $7 million for Minnesota Housing Finance Agency (MHFA) as- sistance for new construction of single- family housing, and subsidies for the construction of water and sewer services for publicly -owned multi -fam- ily and congregate housing. MHFA would also receive $6.5 million for the Community Rehabilitation and Afford- able Rental Investment Funds to allow the agency to work with the U.S. De- partment of Housing & Urban Devel- opment and other units of government to provide gap financing programs to aid residents. The Department of Trade & Economic Development would re- ceive $4 million to the Public Facili- ties Authority for grants and loans to cities and other local units of govern- ment to help repair and replace mu- nicipal water, wastewater, and storm - water facilities as well as for street and bridge repair. The Department of Rev- enue would establish a Local Govern- ment Stability Fund with $600,000, which would be used to aid cities and other units of local government experi- encing financial problems or at risk for defaulting on loan obligations. Minnesota has also been awarded a 90/10 federal share of FEMA public assistance and hazard mitigation grant funding, which, according to the Gov- See Flood update, page 6 C3 1 F-M1 A\ dY � IU 1� AL •� !• • •LI'� You and City Government -- Binding Strong Futures M.n—lu on. . W,.,.6 0, 4L­ 5 -11. 199% Check your mail for the 1997 Cities Week informa- tion packets. Please fax your poster and balloon orders to (612) 215 -4142 by Septem- ber 2, 1997. 1997 -98 LMC Board of Directors President Bob Long Cin Mounds View First Vice President Delvin Haag Councilmember Buffalo Contents Second Vice President Susan Hoyt Flood relief update ...................................... ............................... I Administrator Levy limitation notices distributed ............... ............................... 3 Falcon Heights Model Ordinance correction ....................... ............................... 3 Directors 4M Fund update .......................................... ............................... 4 Joan Cambell Limitation on the creation of nonprofit corporations .................. 4 Councilmember Grant information ........................................ ............................... 5 Minneapolis LMCIT work comp members will receive refund ..................... 6 Chuck Canfield Mayor Governor declares state of emergency ....... ............................... 6 Rochester LMCIT responds to healthcare trends in Minnesota ................. 7 Robert J. Demuth Profile your community on the Internet ...... ............................... 7 Mayor Seekinginput ............................................... ............................... 8 Worthington Cities and the regulation of septic systems .............................. 10 Gary Doty Legislation increases flexibility and provides planning Mayor funds for mergers ................................... ............................... I Training /conferences ................ ............................... 13 Robert Erickson Administrator 1997 Regional Meetings ............................ ............................... 14 Lakeville Municipal ............................................ ............................... 15 Sharon Feess Councilmember Brooklyn Park Arlyn Gunderman Councilmember Nen Brighton LesterHeitke Mayor Willmar Gail Lippert Administrators Cl erk- Treasurer Greenfield The Cme.� Bulletin is a publication of the League of Minnesota Cities and Roberta Megard mclude� an update of state legislative, administrative and congressional actions that Councibnentber affect cities. St. Patti Kathleen Sheran Councilmember Mankato Executive Director Editor Design Jim Miller Erica Norris Gayle Broth Joy Tierney Mayor ,Associate Executive Director Plymouth Sharon Klumpp EX O Blaine Hill Past President League of Minnesota Cities, 145 University Avenue West, St. Paul, MN 55103 Clerk - Treasurer Phone: (612) 281 -1200; (800) 925 -1122; Fax: (612) 281 -1299; TDD: (612) 281 -1290. Breckenridge James Prosser t Printed on recycled paper AMA na Richfield Page 2 LMC Cities Bulletin Levy limitation notices distributed Eric Willette The Department of Revenue sent the official notice of 1998 levy limitations to cities over 2,500 in population on July 31. Cities under 2,500 in population are exempt from the levy limits. The notice contains a step -by -step calculation of the allow- able levy limit. The calculation follows the same general steps outlined in the 1997 Law Summaries contained in the June 4 Cities Bulletin. There were, however, two minor differences. The implicit price deflator (inflation adjustment) used by the Department of Revenue was 2.2 percent, shown as a multiplier of 1.022 (step 6). The League's levy limit calculation used 2.24 percent, or a multiplier of 1.0224. The second difference is that the calculation on the official notice stops with the calculation of the overall levy limit, rather than stating that the limit does not include debt levies and other special levies which may be levied in 1998 (see the law summaries for a complete listing of allowable special levies). This has confused some city officials who initially took the payable 1998 overall levy limit listed on the notice to be the total amount the city could levy for all purposes. The notice also included the forms necessary to document any special levies to be levied above the allowable levy limit. Preliminary city levies, including all documentation of special levies, must be received by the Department of Revenue by September 15, 1997, in order for special levies to be approved by the department. An August 6 memo from the Department of Revenue to counties and cities over 2,500 in population sought to clarify that certificates of participation may not be claimed as special levies outside the overall levy limit. If certificates of participation were calculated as bonded debt on your 1997 form 280, you must notify the department of the error to get that amount included in your 1997 levy limit base, thereby increasing your allowable 1998 levy limit. Forms for official notification of this error were included with the department's memo. r Model Ordinance correction Kent Sulent Early copies of the League's revised copy of the model tobacco ordinance (dated 6/97), intended to serve as a guide for the type of ordinance required under the state's new tobacco law (1997 Session Laws Chapter 227), contained an error in the discussion of required and allowable penalties. This error was corrected in the majority of model ordinances that have been sent out to cities, but to ensure proper compliance with the new state law, cities should review their tobacco ordinances against the following: Section 1300 Penalties. (Note: The amounts set forth below are the state minimums. Cities may impose higher fines, etc., although reasonable- ness must still be the standard. In addition, some cities prefer to adopt a fine schedule which could be refer- enced here instead of listing each fine.) August 13, 1997 Subd. 1 Licensees. Any licensee found to have violated this ordinance, or whose employee shall have violated this ordinance, shall be charged an administrative fine of $75 for a first violation of this ordinance; $200 for a second offense at the same licensed premises within a 24 month period; and $250 for a third or subsequent offense at the same location within a 24 month period. In addition, after the third offense, the license shall be suspended for not less than seven days. Subd. 2 Other Individuals. Other individuals, other than minors regu- lated by subdivision 3 of this subsec- tion, found to be in violation of this ordinance shall be charged an adminis- trative fee of $50. (Note: The state law imposes this administrative penalty on anybody other than the licensee who sells tobacco to minors. The law is silent on imposing administrative penalties to those who provide but do not sell tobacco to minors. Cities, however, could impose an administra- tive penalty as provided in this subdivision.) Subd. 3 Minors. Minors found in unlawful possession of, or who unlawfully purchase or attempt to purchase, tobacco, tobacco products, or tobacco related devices, shall be (Note: The state law requires the city to consult with interested parties of the courts, educators, parents, and chil- dren, to develop an appropriate penalty for minors in that particular commu- nity. The penalty does not have to be in the form of a fine. It could include tobacco related education classes, diversion programs, community services, or another penalty the city believes will be appropriate and effective.) Subd. 4 Misdemeanor. Nothing in this section shall prohibit the city from seeking prosecution as a misdemeanor for any violation of this ordinance. (See Note in Section 1200, Subd. 6.) If you have any questions about any provisions of the new tobacco law, please contact Kent Sulem at (612) 281 -1245. r Page 3 FOCUS ON NEW LAWS 4M Fund update Limitation on the An investment alternative sponsored by the League of Minnesota Cities creation of nonprofit corporations The 4M Fund The 4M Fund is a short -term investment option designed specifically for Minnesota municipalities to provide safety, daily liquidity, and a competitive yield. Eric Willette Services and benefits include free checking, no minimum balance requirements, the flexibility to establish multiple sub - accounts for specific purposes, ACH A new state law passed this year payment capabilities, and a lockbox for state -aid payments. prohibits subdivisions of the state from forming for - profit or nonprofit corpo- rations unless explicit statutory July 28 - August 1 authority exists. Corporations created Daily Annualized before May 31, 1997, would not be Date Rate Yield affected by the new law. 7/29 5.1% 5.32% 5.32% 7/29 5.188% The legislation was pushed by the 7/30 5.16% 5.29% State Auditor's Office in response to 7/31 519% 5.33% reports of past abuses by counties that 8/1 515% 5.29% have formed corporations for a variety August 4 - 8 of purposes. The State Auditor's staff has alleged that corporations are Daily A ed Date Rate' Yield created b local governments p rima - y c P 8/4 5.16% 5.29% rily to avoid statutory restrictions on 8/5 5.15% 5.28% 8/6 514% 5.28% local government activities such as the 8/7 5.15% 5.28% Data Practices Act, open meeting law, 8/8 5.13% 5.27% and the public official gift ban. - - -- The law will have a direct and limiting impact on cities and other The 4M Plus Fund local governments looking to create The Plus Fund is a complementary money market option designed to provide corporations for legitimate reasons. safety and an enhanced yield when compared to the traditional 4M Fund. The PLUS Fund requires that you maintain deposits for at least 30 days with a 24 League staff have been contacted by hour advance withdrawal notice. city officials regarding the effect of the law on corporations created to provide cable television PEG (public education July 28 - August 1 and government) programming, to build and maintain a multi -city senior Daily Annualized Date Rate' Yield '� communi center, and to foster Y 7/28 5.29% 544% community development. 7/29 5.29% 543% 7/30 530% 544% It is difficult to gauge the implica- 7/31 527% 542% tions of this new law for cities and 8/1 529% 543% other political subdivisions. League August 4 - 8 staff will meet with representatives of the State Auditor's Office in the Daily Annualized coming weeks to discuss the law. This Date Rafe' Yield 8/4 5.28% 5.43% issue will be discussed by the Improv- 8/5 5.29% 5.43% ing Service Delivery Policy Commit- 8/6 5.28 5.42% 1 817 5.28% % 5.42% tee this fall for possible inclusion in 8/8 5.34% 5.48% the League's 1998 legislative policies. — If your city has formed or is planning 'Yield is net of fees. to form a for -profit or nonprofit Daily interest compounding, free checking, Automated Clearing House (ACH) payment systems and corporation that may be affected by investment educational opportunities are among the services offered by the Fund. For more information, this law, please contact Gary Carlson please call Stefanie Adams of Insight Investment Management at (800) 333 -0813 or (612) 371 -7275. or Eric Willette at (612) 281 -1263. Ir Page 4 LMC Cities Bulletin Grant information Loans available through Drinking Water Revolving Fund The Drinking Water Revolving Fund provides financial assistance- - primarily in the form of below mar- ket -rate loans - -to municipalities and other eligible public water suppliers to improve or construct water treat- ment, storage, and distribution sys- tems needed to comply with the Safe Drinking Water Act and to improve drinking water infrastructure. All community water suppliers and non- profit, noncommunity water suppli- ers, such as schools and government office buildings, are eligible for the loans. The Safe Drinking Water Act gives priority for the use of funds to projects that address the most serious risk to human health, are necessary to ensure compliance with the require- ments of the act, and assist the sys- tems most in need on a per household basis according to state affordability criteria. As much as $500 million nationally in revolving -fund money could be available each year. Undi- vidual states must provide a 20 per- cent match of the federal funds.) The fund is being administered by the Minnesota Department of Health and the Public Facilities Authority. For more information, contact: Minnesota Department of Health, Drinking Wa- ter Protection Section, 121 East Sev- enth Place, Suite 220, PO Box 64975, St. Paul, MN 55164 -0975, or call (612) 215 -0770. [ CITIES HELPING CITIES Spring flood assistance funds available Cities and others have contributed to the Spring Flood Assistance Fund developed by the League of Minnesota Cities. Proceeds from the silent auction at the LMC Annual Conference were also donated to this fund. Currently, slightly more than $40,000 is available for distribution to cities affected by this spring's floods. Funding is also available to help pay the city's share of the cost of a flood - related project. Examples of such projects might include the replacement of boulevard trees, the acquisition of lots to be donated for new housing, replace- ment of playground equipment, and hiring necessary experts or consultants to advise the city on a flood- related project. Since funds are limited, the League Board of Directors will select cities to receive funding at the September Board meeting. Application forms are available by calling the LMC Fax Library at (612) 215 -4039 and requesting document number 65080, or by calling Theresia Petry at (612) 281 -1200 or (800) 925 -1122. Ir Money available for community -based planning projects The 1997 Community -Based Planning Act provided for grants for commu- nity -based planning pilot projects. The intent of the pilot projects is to gain a better understanding of how to develop community -based plans taking into account issues of public participation, coordination among governments, dispute resolution, and preparation costs. Successful applicants will commit to developing a community -based plan within 24 months of award of the grant. The plans will be required to meet certain minimum goals. Minnesota Planning is accepting grant proposals from individual counties and groups of local governments (a county and one or more of the cities or townships within it). The application deadline is September 30, 1997. Three grants of $50,000 will be awarded. For further information, contact Steve Reckers at (612) 296 -2884 or e -mail: steve. reckers @mnplan.state.mn.us. August 13, 1997 Page 5 LMCIT work comp members will receive refund Peter Trit;. LMCIT will shortly receive an $8.3 million refund from the state Workers Compensation Reinsurance Association (WCRA). Since the LMCIT workers' comp program is in strong financial shape and doesn't need these funds, the LMCIT Board has directed that the refund be passed on to LMCIT member cities. If all goes well, we hope to have the money in cities' hands by the end of August. To put the amount to context, $8.3 million is roughly equal to half of LMCIT's annual work comp premium volume. The WCRA is the state- mandated reinsurer. All work comp insurers and self - insurers are required to purchase reinsurance from the WCRA, which operates on a nonprofit basis. The $8.3 million is LMCIT's share of a total of $470 million of surplus funds, which the WCRA is returning. The Surplus largely results from the 1992 and 1995 work comp reform legisla- tion, which reduced the WCRA's loss costs, and the good investment results the WCRA has achieved. The WCRA originally planned to distribute this surplus last winter, but the refund has been held up a couple times. The commissioners of Com- merce and of Labor and Industry must each approve any WCRA refund, and both took several months to do so. Several insurance companies then filed suit challenging how the WCRA proposed to allocate the funds, which delayed things further. That litigation is still going on, but the WCRA has now been cleared to distribute the self - insurers' shares, which aren't affected by the litigation. The LMCIT Board of Trustees has directed that the funds be allocated among current member cities using a formula that looks at the difference between the city's total premiums and total losses for all the years the city has participated in LMCIT through 1996. ("This is similar to how LMCIT's property /casualty dividends have been allocated among cities.) Large losses will be capped at $50,000 to limit the effect a single catastrophic loss has. The Trustees also directed that each member receive a minimum dividend equal to 10 percent of their 1996 premiums, even if their losses exceed their premiums. LMCIT Board Chair Jim Antonen commented that returning these funds to member cities is just another example of what LMCIT is all about. "The cities in LMCIT are cooperating to meet their risk management needs and to Share the costs, and they share in the benefits too:' r Flood update, continued from page 1 ernor, saves the state more than S22 million for the state's matching share of that relief. On August 6, U.S. Secretary of Housing and Urban Development (HUD) Andrew Cuomo announced that cities and other local units of gov- ernment in Minnesota will receive $92 million in grants. A new HUD Di- saster Recovery Initiative supplements FEMA assistance and will provide nearly $20.5 million directly to East Grand Forks. The remaining FEMA grants ($71.5+ million) will be distrib- uted by state government to eligible flood damaged communities. HUD Disaster Recovery funding can be used for long -term recovery, buyouts, relocation, rehabilitation of residential and commercial buildings, homeownership assistance, new hous- ing constriction, code enforcement, job creation and retention, and preven- tive measures including acquisition, construction or reconstruction of Streets, water, and sewer facilities, neighborhood centers and other public facilities. Cities to five counties designated as priorities to receive HUD funding include Ada, Breckenridge, Monte- video, Moorhead, and Warren. Cities located in the 66 other counties de- clared federal disaster areas will also be eligible for HUD grants. r SUNINIER STORM UPDATE Governor declares state of emergency Ann Higgins On July 31, Governor Carlson issued an executive order declaring a state of emergency for cities in Anoka, Hennepin, Isanti, Kandivohi, Ramsey. Sherburne, and Wright counties. Widespread damage caused by severe thunderstorms and torrential rainfall that fell between the end of June and late July, left cities in central and cast - central regions of the state with costly losses to agricultural, residential, and business property, as well as to public infrastructure and facilities. The Governor acknowledged that 1997 has been an unusually severe year for the state, and indicated that the emergency declaration was a first step in getting aid to state residents. Resources in many cities were quickly exhausted in responding to this latest series of storms. The Division of Emergency Management has been charged with determining the local need for disaster assistance. The division will coorch- nate the delivery of such aid with the Federal Emergency Management Agency (FEMA) and other state and federal agencies. Last Thursday, the Governor submitted an application for a presi- dential disaster declaration for those counties and the cities located within those counties affected by the Storms. To date, the federal government has not indicated whether that application for additional federal assistance will be approved. r Page 6 LMC Cities Bulletin LMCIT responds to healthcare trends in Minnesota Ann E. Gergen Saying that healthcare is a changing field is like saying that winters in Minnesota are cold- - truthful, but somewhat redundant. And just like during a Minnesota winter, it's easy to feel buried when you review healthcare trends in order to plan employee benefits. LMCIT strives to help cities analyze these trends and provide employee benefit packages designed to meet the needs of a changing work force. Just as healthcare needs vary from one individual to the next, benefits packages also vary from one employer to the next. The availability of healthcare providers in your area, the cost of care, and the size of your staff make your needs unique. Develop- ments in the healthcare industry make your employee's needs manageable. Trends in managed care "Managed care" may be the biggest buzz phrase of the 90s. Used to denote a mechanism of delivering health services through controlled access and care protocols, the term "managed care" can include anything from a group of physicians contracting with an employer to provide special- ized services, to an entire network of physicians, clinics, hospitals, pharma- cies, and other related agencies or individuals. In Minnesota, the emergence of managed care has spawned rapid consolidation of healthcare services into three main Health Maintenance Organizations (HMOs). As these HMOs reach maturity in services and administration, service levels may be expected to level out. Slower to level may be the costs of such services, with each of the major HMOs in the state predicting rate increases of up to 15 percent in 1997. Data regarding care costs is simply too new to accurately predict long -term cost implications. City concerns For cities, managing healthcare means providing employees with August 13, 1997 affordable and comprehensive cover- age options. More and more, flexible benefits -- numerous benefit options, individually tailored to each em- ployee- -are being offered by employ- ers as the ultimate in healthcare management. Benefits to employees might include not only traditional notions of healthcare, but also life and disability insurance, and insurance options available to spouses and family members. LMCIT review and planning Over the past year, the LMCIT Board of Trustees has undergone an extensive review of employee benefits programs and services it offers to Minnesota cities. This review has included analysis of the health care market and regulatory trends, existing and proposed insurance options, current rate structures, member preferences, and staffing needs. As a result of this comprehensive review and strategic planning, LMCIT determined that an additional staff position was needed to concentrate on existing employee benefit programs, as well as to develop options for new and enhanced services. Existing programs include the fee - for - service or preferred physician provider self- insurance pool, the life insurance program, and disability (short-term and long -term) insurance options. New and enhanced services might include additional insurance programs, healthcare consultative services for cities, flexible benefits packages and contracts with HMOs. The first steps in determining system improvements and new offerings are to discuss service levels with current program participants, learn how other agencies provide similar services, and begin discussions with healthcare service providers in Minnesota. Additionally, an advisory task force of city representatives is being developed to review directions and provide program feedback. Cur- rent programs are being reviewed for effectiveness and efficiency- -from both an internal and external perspective. Descriptions of existing benefits programs and new program ideas will be further discussed as part of the League's 1997 Regional Meetings held in September and October. The Regional Meetings provide an excel- lent opportunity for program feedback and brainstorming about improved services, as well as an opportunity to talk more about trends in the healthcare industry and changing employee benefit needs. What do you think? Anyone with ideas for improve- ments or comments on existing health, dental, life or disability insurance programs are encouraged to call the League's office. As the new Employee Benefits Program Manager, I would appreciate the opportunity to hear about city needs as they relate to employee benefits and expectations of future programs. I can be reached at (612) 281 -1291 or agergen@ Imnc.org. Ir Profile your community on the Internet ® At this year's State Fair, August 21 - September 1, 1997, the Internet community profile system will be demon- strated in the Crossroads Building. Fair -goers will have the opportu- nity to be videotaped explaining why their community is a good place for businesses to locate. These videotaped clips will then be used to introduce community profiles on the Internet. Commu- nity profiles are linked to the Department of Trade and Development's Home Page at http: / /www.dted.state.mn.us. '[ Page 7 Seeking input Administrative penalty orders and cease and desist orders The Minnesota Department of Health's Environmental Health Division is seeking comments on the department's plan for the use of administrative Met Council HOV penalty and cease and desist orders. The Health Enforcement Consolidation Act gives the Environmental Health Division the authority to issue these access hearing orders to all regulatory programs under the division's control. Programs affected include, but are not limited to, public pools, food and beverage The Metropolitan Council will establishments, enclosed sports arenas, asbestos and lead abatement. hold a public hearing on the proposed Information requests and comments should be directed to: David Wulff, I -394 demonstration project, which MN Department of Health, Division of Environmental Health, 121 East would allow solo drivers to buy access Seventh Place, Suite 220, PO Box 64975, St. Paul, MN 55164 -0975. Phone: to the high occupancy vehicles (HOV) (612) lanes currently restricted to vehicles 215 -0849. Fax: (612) 215 -0979. E- mail: david.wulff Cal health.state.mn.us. with two or more passengers. The To be considered, comments must be in writing and received by 4:30 project will assess the feasibility of a p.m. on August 20, 1997. A public information meeting on the proposed user fee system and determine applica- revisions will be held Tuesday, September 9, 1997 in Conference Room LL56 bility to the broader metro area at the same address. [ freeway system. The purpose of the hearing is to present information and gather public reaction to the proposal. The hearing is scheduled for Changes to accessibility and building codes Monday, September 8, 1997 from 5 p.m. to 7 p.m. in the council chambers The Department of Administration Building Codes and Standards of the Metropolitan Council Offices, Division is requesting comments on its planned rules and amendment of rules Mears Park Centre, 230 East Fifth governing the Minnesota state building code, Chapters 1300, 1302, 1305, Street in downtown St. Paul. If you 1307, 1335, 1346, 1365, 4715. The Division is also seeking comments on its have questions about the hearing or planned amendment to rules governing the accessibility requirements of the wish to preregister to speak, contact state building code. A concern that the current accessibility code may not Ms. Janice Martin at the Met Council have adequately simplified and consolidated the regulation process has led to at (612) 602 -1758. Written comments the possibility of changes to this section. To receive a copy of the draft rules may be submitted to Mr. Carl Ohrn at and to submit written comments, contact: Ms. Peggi White, Department of the Met Council at the above address, Administration, Building Codes and Standards Division, 408 Metro Square by fax (612) 602 -1739, or by e -mail to Building, 121 7th Place Fast, St. Paul, MN 55101. Comments on the changes data.centerCa�metc.state.mn.us. You to the accessibility code must be received by Friday, October 3, 1997 at may also record comments on the Met 4:30 p.m. [ Council's Public Comment Line at (612) 602 -1500. All comments must be received by 12 p.m. on Monday, MPUC to address 612 area code September 22, 1997. [ The Minnesota Public Utilities Commission will meet August 20 at I p.m. to address the need for a plan to provide relief for the 612 area code. The meeting will he held at the MPUC hearing room, Third Floor, Metro Square Building, 121 7th Place East, St. Paul. The commission will take oral arguments of up to five minutes from parties. Those individuals interested in speaking at the ntecting should contact either Marc Fournier at (612) 296- 3793 or Diane Wells at (612) 296 -6068 before 4:30 p.m. on Tuesday, August 19. Staff briefing papers for the meeting will be available after August 14. To obtain one free copy, contact Mary Reid at (612) 282 -6445. Page 8 LMC Cities Bulletin Cleanup and redevelopment of MPCA water quality standards meetings contaminated sites The Minnesota Pollution Control Agency will hold a series of public Legislation requiring a report on meetings on rules governing water quality standards and proposed new rules the coordination of programs providing governing water quality standards, implementation procedures, and assistance in the cleanup and redevel nondegradation standards to Great Lakes Initiative (GLI) pollutants in the opment of contaminated sites by Lake Superior Basin. The hearings will be conducted by an administrative January 1998 was passed during the law judge and held in Virginia on September 15, 1 p.m. to 4:30 p.m.; Grand 1997 legislative ession. Marais on September 16, 1 p.m. to 4:30 pm.; Duluth on September 17, 1 The group charged with issuing p.m. to 5 p.m. and 7 p.m. to 9 p.m.; and St. Paul on September 24, 9 a.m. to the report includes representatives 4:30 p.m. All interested parties will be given the opportunity to participate from the Department of Trade and by submitting statements orally or in writing. Statements may be submitted Economic Development, Pollution without appearing at the hearing. Contact Shannon Lotthammer, Water Control Agency, Department of Quality Division, MPCA at (612 ) 296 -7727 or (800) 657 -3864 to receive a Revenue, Department of Agriculture, copy of the proposed changes or for more information. If you would like to Department of Commerce, and receive a copy of the proposed rules please contact Mickey Ojard in the Metropolitan Council. At the recom- League's IGR department at (612) 281 -1258. t mendation of the author of this legislation. Representative Dee Long (DFL- Minneapolis), the League of Minnesota Cities, Association of Metropolitan Municipalities, and Association of Minnesota counties and contamination were also invited to participate in their Wellhead protection meetings. At their initial meeting, the group asked for input from individuals who prevention The Department of Health intends to adopt rules without a public have sought assistance with contami- hearing related to wellhead protection as a method of preventing contamina- The rules nated sites. This feedback is critical in tion to public water supply wells relying on groundwater. proposed order for the group to assess what the are intended to protect public water well users from the health risks associ- Specifically, the proposed rules needs are in terms of increased ated with disease and chemical contaminants. to isolation distances as defined in coordination strategies. Your experi- for require all public water suppliers maintain the state well code for newly installed potential contamination sources, and ences in seeking and applying assistance from the state for cleanup undertake efforts to manage potential sources of contamination located efforts in your community will help to within 200 feet of a public water well. Written requests for a public hearing and written comments on the ensure that the report is useful and meaningful. Suggestions to streamline proposed rules may be submitted to: Mr. Art Persons, Minnesota Department the application process or to improve of Health, Southeastern District Office, Campus Center Building, 2 2 116 Rochester, MN 55904 -4744 by Thursday, September the efficiency and effectiveness in Campus Center Drive, 4, 1997 at 4:30 p.m. Telephone: (507) 285 -7289. Fax: (507) 285 -7445. A administering current programs would also be valuable. Please put your public hearing will be held if at least 25 persons submit a written request. If comments in writing and fax them to you would like a copy of the proposed rules please contact Mickey Ojard in Andrea Stearns at (612) 215 -4116 by the League's IGR department at (612) 281 -1261. it Monday, September 1, 1997. If you have any questions, please feel free to contact me at (612) 281 -1258. t Page 9 August 13, 1997 Cities and the regulation of septic systems Susan Schmidt, Minnesota Pollution Control Agency, Water Quality Division Cities of almost any size typically have at least an area or two served by individual sewage treatment systems (ISTS, commonly called "septic systems "). Residences and businesses in many smaller cities are served exclusively by these septic systems. Minnesota Laws passed in 1994 and again in 1997 were intended to address the serious water pollution and health problems associated with the thousands of failing septic systems in the state. This new regulation may result in cities taking on a new interest in these on -site septic systems within city limits. Background The 1994 ISTS Act regulated ISTS for the first time on a statewide basis in Minnesota. Major 1994 provisions addressed: ISTS design standards; "triggers" for inspection and upgrade; licensing; local adminis- trative requirements; and disclosure at time of property transfer. Major revisions to Minnesota Rule Chapter 7080. which implemented the 1994 law, became effective in January 1996. As the new ISTS program came on line, MPCA staff and legislators received many complaints, especially relating to required upgrades of existing septic systems. Representative Dave Bishop (Rochester) and Senator Len Price (Woodbury) authored House File 244 / Senate File 389 during the 1997 Legislative Session which incorporated recommendations for ISTS Program changes. The MPCA and various interest groups -- including the League of Minnesota Cities- - worked with the chief authors and other interested legislators during the 1997 Legislative Session in shaping the final ISTS policy bill. Minn. Laws 1997 Chapter 235, makes significant changes to the original 1994 ISTS Act. Cities need to be informed of these changes. Highlights of the 1997 ISTS Law Statewide Coverage. The ISTS law (Chapter 115.55- 115.56) now requires all parts of the state to be covered by individual sewage treat- ment system ordinances. Counties are required to pass ordinances regulating septic systems areawide rather than just in shore land areas in compliance with 7080 rules and MS 115.55- 115.56. Cities and townships can pass individual ISTS ordinances. City and township ordinances must be as restrictive as the respective county ordinance. If a township or city chooses not to pass an ordinance, then the county ordinance and county -wide enforcement prevails in that jurisdic- tion. A county need not pass an ordinance if 100 percent of the county is served by individual city and township ordinances (e.g. Ramsey County). Any ordinance adopted by a local unit of government before May 7, 1994 (effective date of the 1994 law) to regulate ISTS must be in compli- ance with the ISTS rules by January 1, 1998. Areas without an adopted ISTS ordinance as of May 7, 1994, must adopt ordinances that comply with ISTS rules by January 1, 1999. Grandfathering Svstems with Avo feet of soil separation that are not imminent public health threats. Effective immediately, existing individual sewage treatment systems Much do not present an imminent public health threat and have at least two feet of vertical soil separation need not be upgraded. This ;rand - fathering will not apply in existing shore land areas, wellhead protection areas, or to systems serving food/ beverage/ lodging establishments licensed by the Department of Health. ISTS inspectors and local ISTS program administrators need to be aware of this important change. Local ISTS Standards. The state code, Minn. Rules Chapter 7080, was designed based on sound research as a minimum code, which has been successfully implemented without change by most jurisdictions in the state. However, cities need to know that counties can adopt ISTS standards for existing septic systems that are less restrictive than the state code provid- ing the standards are protective of health and the environment. And counties, in limited areas with very unique local conditions, can adopt less restrictive standards for new ISTS construction or replacement providing the standards are protective of human health and the environment, and the county follows a process laid out in the law. It is «p to the counties to deter- mine whether these local codes with lees restrictive standards are still protective of public health and the environment. In both cases, the local ISTS standards may not conflict with existing shore land, well management, or food/beverage /lodging licensing regulations. New Technologies. City officials might be interested in the concept of "warrantied" individual sewage treatment systems offering new and promising on -site sewage treatment technologies if certain local govern- ment and state requirements are satisfied. ISTS Advisory Committee Mem- bership. Finally, the 1997 law directs the MPCA to expand the ISTS Advisory Committee to include more participation from interest groups, such as cities, and more participation from elected officials. The MPCA is seeking names of city and other local, elected officials interested in serving in this advisory capacity. Page 10 Continued on next page LMC Cities Bulletin Septic systems, eontinued from previous page The MPCA, Water Quality Division, ISTS Unit is still sorting through how to implement these new 1997 directives. The Agency will be working with the chief legislative authors, the ISTS Advisory Commit- tee, local program partners, other state agencies, and other interested groups to carry out new responsibilities under this law and to communicate changes to all program partners including cities. The Agency will continue to solicit city input as we work toward implementing these changes in ISTS Law. For a copy of the final ISTS Policy Bill (House File 244) contact House Index at (612) 296 -6646 or Senate Information at (612) 296 -2146. Copies are also available through the Internet at http: / /www.leg.state.mn.us. MPCA has prepared factsheets to help in understanding the new law. Please contact MPCA's Infoline at (612) 282 -6246 or (800) 657 -3864 for copies or further information. Ir Legislation increases flexibility and provides planning funds for mergers Jim Gelhniann, Board of Government Innovation and Cooperation Responding to the need for more flexibility for local officials, the Minnesota Board of Government Innovation and Cooperation asked the 1997 Legislature to broaden its authority to approve locally- developed plans for merging two or more local governments. It also sought the ability to provide planning grants for local governments interested in studying a potential merger. The Legislature approved both requests. Since its creation in 1993, the Board has had the authority to approve mergers between two or more local units of government. The Board may approve mergers between two or more cities, townships, counties, or a combination of cities and townships. The Board's merger program requires the voluntary participation and support of all governing bodies affected by the proposed merger. In addition to approving the merger, the Board may provide state aid to help local govem- ments overcome financial barriers to the implementation of a merger. Five mergers have already benefited from the Board's authority and state aid. The Board approved the mergers between Norwood /Young America and Redwood Falls /North Redwood. In addition, the Board provided financial assistance to St. Cloud /St. Cloud Township, Waite Park /St. Cloud Township and North Branch/Branch, helping those commu- nities overcome significant barriers to their successful mergers. Legislation recently signed into law gives more flexibility to local governments interested in pursuing a merger. The Board now has the authority to approve a plan for realigning the boundaries of three or more local units of government, provided the realignment results in a net reduction of at least one unit of government. This authority will be especially useful for a township or city that seeks to merge with two adjoining cities. Using the Board's new author- ity, a portion of the township or city may merge with one neighbor, while the remainder of the township or city may merge with the other neighbor. As is the case with all programs spon- sored by the Board, the proposed realignment of boundaries would need to be approved by all governing bodies before it could be presented to the Board. The Board's authority to facilitate voluntary consolidations has rekindled interest in mergers; however, financial considerations have precluded many city and township officials from seriously studying a potential merger. Thanks to new legislation, the Board is now able to assist with these up -front costs as well. The Board may now provide up to $10,000 in planning grants for local governments consider- ing a potential merger. To qualify for this assistance, local governments must have a combined population of 30,000 or less, and must certify that the requested aid is essential to completing a study of a potential merger. Local governments with a combined population of 2,500 and 30,000 must agree to provide $1 in local match for every $1 provided by the state. There is no matching requirement for local governments with a combined population of 2,500 or less. For more information about the Board and its programs, please contact Board of Government Innovation and Cooperation Executive Director Jim Gelbmann at (612) 282 -2390. Ir August 13, 1997 Page 11 Informational Workshops to Take Place in Minnesota on Tobacco Licensingand Regulation What does the OrcW State Law Mean for Counties, Cities, and Townships ? w e V Y- 0 . ,. n - . .o ,, ✓ 1 11 y I C t 6� K 6 -,- o« .,. I 4 . r a K A- 'b d M a Q 1. An informational workshop is being offered to provide county, city, and township officials with resources for understanding and implementing the state's new law regulating the licensing and sale of tobacco products. The law takes effect August 1, 1997, and requires local communities (either counties, cities, or townships) to adopt or amend tobacco licensing ordinances. This workshop is being coordinated by the League of Minnesota Cities in conjunction with the Association of Minnesota Counties, the Minnesota Association of Townships, the Minnesota Department of Health, the Minnesota Department of Human Services, and with input from a variety of other governmental, health, and business groups. The goal of the meeting is to help local units of government understand what is required of them by this new law. The workshop will provide attendees timely information about: • Licensing tobacco outlets • Setting up a system for administrative penalties • Conducting lawful compliance checks • And more! The workshop is meant for local policy makers and law enforcement officials, but community members concerned about youth access to tobacco products and the regulation of tobacco sales are welcome to attend. Initially, the workshop is being offered in September at three locations; Marshall, Brainerd, and Rochester. More workshops are planned for the metro area and other locations beginning in November, with dates yet to be determined. Tobacco Law Workshop Dates Tirmps and Locations: Marshall Brainerd Rochester Date: Tues., Sept. 16, 1997 Time: 1:00 PM to 4:30 PM Location: Southwest State University Conference Center Room SCW 262 Register Early!! Date: Thurs., Sept. 18, 1997 Time: 1:00 PM to 4:30 PM Location: Brainerd Public Library, Large Meeting Room 416 S. 5th Street Date: Fri., Sept. 26, 1997 Time: 8:30 AM to Noon Location: Burnett Realty 140 Elton Hills Lane There is no cost for the workshop, but space is limited, so sign up early. To register, RSVP with your name, address, and phone to Beth Rabeneck at the Minnesota Deparment of Health, (612) 623 -5356 (by phone /voicemail) or beth.rabeneck @health.state.mn.us (by email). For any other questions, call Kent Sulem at the League of Minnesota Cities, (612) 281 -1245. Training/Conferences League training and conferences 1997 Clerks Orientation August 19- 21 —St. Paul (612) 281 -1200 or (800) 925 -1122 April 23— Hibbing April 30 —St. Louis Park 1998 LMC Annual Conference June 16- 19— Duluth Telecommunications for Rural Minnesota Conference September 24 -25— Alexandria (612) 222 -7409 LMCIT Snowplow Policy Workshops September 3 —LMC Building September 9— Marshall September I 1—Hibbing ( 612) 215 -4069 LMCIT Safety and Loss Control Workshops September 23— Moorhead September 24 —St. Cloud ( 612) 215 -4069 1997 Regional Meetings September 30— Walker October I— Mahnomen October 2— Argyle October 7— Biwabik October 8— McGregor October 9—Corcoran October 21- -Tracy October 22— Benson October 23— Browerville October 28— LaCrescent October 29 —Blue Earth October 30— Northfield 1997 Policy Adoption Conference November 21 (612) 281 -1200 1998 Newly Elected Conference January 30 -31 —Grand Rapids February 6 -7 —St. Paul (612) 281 -1200 1998 LMC Legislative Conference March —St. Paul 1998 LMCIT Safety and Loss Control Workshops April 1— Marshall April 2 —North Mankato April 7— Rochester April 9 —St. Paul April 15— Alexandria April 16—St. Cloud April 22— Crookston August 13, 1997 Other training and conferences MPELRA Minnesota Public Employers Labor Relations Association August 20 -22 —Grand Rapids (612) 241 -2727 MMBA Regional Meetings August 21 —St. Anthony August 28— Duluth September 4— Rochester September I I— Detroit Lakes September 24— Marshall (612) 572 -0222 or(800)848 -4912 1997 Community Policing Symposium September 25- 26—St. Cloud Minnesota Mayors Association Annual Conference October 3 -4— Alexandria To Call It Home: A Conference on the New Immigrants of Southwest Minnesota Southwest State University October 17- 19— Marshall (507) 372 -8210 1997 Traffic Conference October 21 -22 —Grand Marais (218) 387 -3030 Your City's Families National League of Cities 13th Annual Conference on Policy September 1 I -14 —Los Angeles, CA Analysis (202) 626 -3030 University of Minnesota October 29 —St. Paul MN/NAHRO Annual Conference (612) 626 -2259 September 17 -19— Duluth (800) 242 -6804 or (612) 423 -8145 Conference Spotlight Don't forget that the Partnerships for Safe Communities: A Sympo- sium for Effective Community Policing in Minnesota is rapidly approach- ing! Register your team today to participate in this great opportunity to foster strong relationships between mayors and councilmembers, city /county administrators, clerks, city /county department heads, police chiefs and community representatives. The symposium will be held September 25 -26, 1997 in St. Cloud. Attend the symposium to: • Create a shared understanding of community policing among your community's leaders • Bring less experienced team members "up to speed" quickly and efficiently • Learn practical approaches to broadening your base of support and increas- ing the number of active partners back in your community • Have time to strategize about the next steps that make sense for your city • Return home with your team ready to lead the effort Call the Minnesota Community Policing Institute for a registration packet, (612) 281 -1212 or (800) 925 -1122. Page 13 1997 Regional Meetings 2 - 2:30 p.m. LMCIT Issues, including new programs for employee health and benefit programs 2:30 - 4 pm 1998 Tax Levy and Truth -in- Taxation ✓ LGA and HACA ✓ Levy Limits • Local Performance Aid - how do we qualify? • The "new" Truth -in- Taxation notice and how it may impact hearings in your community • Successfully communicating complex budget and tax information to your citizens and the media 4 - 5 p.m Around the Table: Discussion of city accomplishments 5 - 7 p.m. Social Hour, Dinner, and Networking with LMC Staff and Other City Officials from Your Area 7 - 7:30 p.m. Welcome and Remarks from Host Mayor, LMC President and Executive Director 7 30 - 9 p.m Making Your Community a Healthy Place for Youth The League's 1996 State of the Cities survey revealed that dealing with youth is a top emerging issue for Minnesota city officials Adapting ideas from the Healthy Communities — Healthy Youth Initiative of the Search Institute, the League's Improving Community Life Com- mittee has come up with 40 practical ways that city governments can help make their communities better places in which to grow up Our evening program will tell you more about this program, and will feature a panel reaction of young people and adults who work with them in your area, giving the local perspective on how elected and appointed city officials can make a difference You'll end the evening interacting with colleagues from your region about how you, too, can get organized as a "Healthy Commu- nity " City officials are encouraged to host some young people from their city to join them for this unique program! September 24— Metro" September 30—Walker October 1— Mahnomen October 2— Argyle October 7— Biwabik October 8— McGregor October 9— Corcoran October 21 —Tracy October 22— Benson October 23— Browerville October 28— LoCrescent October 29 —Blue Earth October 30— Northfield 'the Metro program agenda may be altered somewFat to cover topics to be added by the Association of Metropolitan Municipalities Further information and registration materials will be available soon from the host cities or the Association of Metropolitan Municipalities. If you have any questions or would like more information about the 1997 Regional Meetings call Kevin Frazell at (612) 28 1-12 15 or (800) 925- 1 122 or e -mail kfrazell @lmnc org L C .,.. fa Ca7.. ma y t Municipal ads Municipal ads are printed at no charge to member cities. Ads run in one issue only unless notice is received to run a second time. The Cities Bulletin is published weekly during the legislative session and every other week during the interim, the time between sessions. Municipal ads will appear in the next available Cities Bulletin. Cities have the right to reject any or all bids on equipment or proposals, and to waive any informali- ties there. Minnesota cities are equal opportunity employers. For information on placing an ad, contact Gayle Broth at (612) 215 -4033 (direct dial), fax (612) 215.4143 or any member of the LMC communica- tions team at (612) 281 -1200 or (800) 925 -1122. �uSINgsJ; •., League of le"d ILnneruu Ciiie. i AT &T Wireless Services B.A. Liesch Associates, Inc. Barna, Guzy & Steffen, Ltd. Bolton & Menk, Inc. Bonestroo & Associates The Brimeyer Group Executive Search Cincinnatus Crysteel Truck Equipment David M. Griffith & Associates DCA, Inc. Ehlers and Publicorp General Code Publishers Gray, Plant, Mooty, Mooty & Bennett, P.A. HDR Engineering, Inc. Honeywell Home and Building Control Insight Investment /Dain Bosworth Minnesota Cities Johnson Controls, Inc. Kennedy & Graven, Chtd. Larson Allen Weishair & Co. Local Government Consulting LOGIS MacQueen Equipment, Inc. McCombs Frank Roos Associates, Inc. Minnegasco Minnesota Cable Communication Association Northern States Power Ratwik, Roszak & Maloney, P.A. Rieke Carroll Muller Associates, Inc. Rust Environment & Infrastructure Short, Elliott, Hendrickson Inc. Springsted Inc. For information on becoming a LMC Business Associate call Duke Addicks at (612) 281 -1221. Check out these municipal ads and other information on the LMC home page— www.lmnc.org Positions ACCOUNTANT. St Peter is seeking a full -time accountant to assist in the maintenance of the city's accounting and financial systems. Responsibilities include maintaining the general ledger, and assisting the director of finance with the daily activities of the finance department. Minimum qualifications include associate degree in accounting, at (cast three years accounting experience or a bachelor's degree with a major in accounting, and knowledge of fund accounting. Starting salary is $2,450 per month plus benefits. City application form and resume must be received by Monday, August 25, 1997. To receive a city application form, contact: City of St. Peter, Community Develop- ment, 227 South Front Street, St. Peter. MN 56082. Telephone (507) 931 -4840. AIRPORT FIXED BASED OPERA- TOR. Luverne is seeking to contract for an airport fixed based operator. Applicants must live at the Luverne airport and be responsible for the maintenance hanger. A/D building, office space, operations, and activities Applicants should have experi- ence in a similar position. Contract negotiable. Proposals will be accepted until 4 p.m. on September 15 by Matt Ilylcn, City Administrator, City of Luverne, 204 E Main. PO Box 659, Luverne, MN 56156 -0659 Telephone (507) 283 -2388. BOOKKEEPER. Delano is seeking applications for the position of city bookkeeper. This is a full -time position that reports directly to the public services director and city clerk. Responsibilities include, but are not limited to: accounting for all receivables and payables, cash balances, payroll, monthly financial reports, bank reconciliation, bond schedules and payments, and tracking TIF district bond schedules and payments. Qualified applicants should have a bachelor's degree in finance, accounting or related field, and at least two years experience in a similar position. Public sector experience preferred. Starting salary is negotiable depending on experience. To apply for the position, applicants must complete an application form and submit a resume to the public services director and/ or city clerk by 5 p.m. on August 29, 1997. To obtain an application form, contact City of Delano, PO Box 108, Delano, MN 55328 -0108. Telephone: (612) 972 -0550. CHIEF OF POLICE. St. Louis Park (population 45,000), a vibrant, well - established, diverse, suburban community adjacent to Minneapolis seeks an experi- enced police manager to lead its 70 person, $5 million department. Position is appointed by and responsible to the city manager. Civil service recruitment and selection process requires a bachelor's degree or equivalent in police, public or business administration, sociology or related field and 10 years experience in police work and at least five years in positions of management, supervision or high level staff services in a progressive environment. Desired: master's degree. experience aligning police operations to community values and instituting collabo- rative policing techniques with a high participatory citizenry. Salary range is $65,000 to $77,000 depending on qualifi- cations plus benefits. Applicants must complete city forms available by calling (612) 924 -2527. Application deadline is September 5, 1997. CITY ADMINISTRATOR. St. Peter (population 10,000) is seeking a city administrator. Starting salary range is $55,000 to $65,000. Report to mayor and six - member council elected to four year terms. Responsible for 64 full -time employees, a general fund budget of $2.8 million, and a total budget of $11.5 million. Requires bachelor's degree (master's preferred) plus five to 10 years experience in a municipal management position. Required experience includes strategic and community -wide planning, economic development, budgeting. and finance Experience with electric utility and higher education a plus. Position profile available. Send resume by Septem- ber 10, 1997, to: The Brimeyer Group Executive Search, 904 Mainstreet, Suite August 13, 1997 Page 15 Business Associates Municipal ads continued 205. Hopkins, MN 55343. Telephone. (612) 945 -0246. Fax: (612) 945 -0102. E -mail: BrimGroup @aol com. CITY CLERK. Warren (population 1.812) has an immediate, full -time opening for a city clerk. Warren is a family - oriented community located in northwestern Minnesota, just 30 minutes from Grand Forks in the heart of the Red River Valley. The city has 15 full -time employees and an annual budget of $3.3 million Responsibilities include' coordinating office staff, managing finances, including electric, gas, water and sanitation utilities; preparing and adminis- tering the budget; project and program evaluation and community relations. Requires: bachelor's degree in public administration, accounting, business, finance or related field, and two years of local government administrative and supervisory experience preferred. Strong oral, written and computer skills essential. Starting salary depends upon qualifica- tions. Please call the Warren City Hall for a job description and application form at (218) 745 -5343 Application deadline is September 8, 1997 Send resume with cover letter to: City of Warren, 126 West Johnson Avenue, Warren, MN 56762. DIRECTOR OF PROPERTY RECORDS AND REVENUE, RAMSEY COUNTY. Ramsey County (population 480,000) consists of the city of St Paul and 18 suburban communities. Salary range is $74,436 to $107,268 Report to the county manager and manage depart- ment with 170 employees and a 1997 budget of $11 million. Responsible for properly taxation activities including assessments and property records, also elections. Work with municipalities, state. and federal agencies. Prefer master's in public administration, business administra- tion, or related field, or a J.D., plus eight or more years of responsible, top -level management of a large public or private department engaged in fiscal or adminis- trative operations Apply by September 12, 1997, to: The Brimeyer Group Executive Search, 904 Mainstreet, Suite 205, Hopkins, MN 55343. Telephone: (612) 945 - 0246. Fax: (612) 945- 1012. E -mail: BrimGroup@aol com DIRECTOR OF PUBLIC WORKS/ CiTY ENGINEER. Columbia Heights is seeking a director of public works /city engineer for highly responsible, manage- rial, administrative, and technical work in planning and directing municipal public works and engineering activities Required qualifications. bachelor's degree in civil engineering, licensed professional engineer in Minnesota (or ability to become licensed in Minnesota within six months of employment), and five years progressively responsible experience managing engineer- ing and public works functions. Desired qualifications: master's degree in business or public administration, six or more years progressively responsible experience managing engineering and public works functions, one year training and /or experience in GiS, and one year training and/or experience in the operation of a computer. Salary range is $5,047 to $6,389 per month plus fringe benefits. A com- pleted city employment application must be submitted to be considered for this position and sent to: City of Columbia Heights, Attention: Assistant to the City Manager. 590 40th Avenue NE, Columbia Heights, MN 55421. City application may be obtained at the above address, or by writing to the above address, or by calling (612) 782 -2811 or TDD. (612) 782 -2806. City employment applications must be in the city's possession no later than 4:45 p.m. on Friday, September 12, 1997. DIRECTOR OF PUBLIC WORKS. St. Anthony is seeking a director of public works. Position reports to city manager. Salary range is $47,500 to $53,000 depending upon qualifications. Position summary: to lead, plan, and administer a comprehensive operational and inainte- nance program including overseeing equipment, streets, parks, water, sanitary sewer, storm sewer, and other city facilities in a manner that will ensure the highest level of service at the most affordable cost. The person in this position will supervise and coordinate full -time, part -time and seasonal public works employees as well as oversee the progress and quality of the work performed by contractors. The person in this position must also maintain lines of communication with police, fire, and city hall staff regarding operations that directly and immediately affect residents (e.g water shut off due to repairs). The work performed is done in cooperation with and under the direction of the city manager, yet a great deal of independent judgement is required. Position requires extensive public contact. Required skills, knowledge and abilities: working knowledge of public works operations, construction techniques, maintenance techniques, and equipment for public works functions. Must be able to Page 16 communicate verbally and in writing with public works personnel, other city staff, city officials, and the general public in a courteous and effective manner. Must be able to independently establish and meet priorities within specified targeted dates. Ability to demonstrate effective adminis- trative supervisory and management techniques. Ability to prepare and administer the public works budget 'rhe usual schedule for this position is eight hours per dav, Monday through Fnday. Frequently, this person is required to work additional hours due to workload, evening meetings, and emergencies Start date is November 24, 1997. Applications may he obtained from city hall or by calling (612) 789 -8881, Monday through Friday, 8 a in to 4:30 p.m. All applications submitted for considerations must be returned to City Manager, City of St. Anthony. 3301 Silver Lake Road, St. Anthony, MN 55418 by 4:30 p m on September 9, 1997 EQUIPMENT OPERATOR. Babbitt is accepting applications for the position of street department equipment operator. Applications accepted until Scplernhei 19. 1997. Job description and employment application available upon request by contacting City of Babbitt, Clerk's Office. 12 Babbitt Road, Babbitt, MN 55706. Telephone (218) 827 -3464. INTERIM CITY ADMINISTRATOR/ INDEPENDENT CONTRACTOR. Otsego, located in Wright County, is seeking proposals for an interim city administrator on an independent contractor basis for an estimated period of nine months, subject to possible extension by mutual agree- ment. The city was incorporated in 1990 and is presently undergoing strong development pressure, and is also considering establishing city sewer and water services within the city in the near future. The interim city administrator will report directly to the city council and will be expected to evaluate and make recommendations to the city council regarding the present city administrative structure; evaluate and make recommenda- tions regarding existing ordinances, internal rules and regulations; and will oversee all city functions during this crucial period in the city's history. Minimum requirements include a bachelor's degree in public administration, urban studies or a closely related field: substantial experience as a city adminis- trator or city manager: demonstrated knowledge of all facets of city govern- LMC Cities Bulletin Municipal ads continued ment; and substantial experience with city sewer and water systems, and the develop- ment, construction, and maintenance of such systems. Proposed hourly rate as an independent contractor is $25 per hour, or more depending upon qualifications. A proposed contract is on file at Otsego City Hall with attached list of tasks to be completed during the term of the contract. Please write or call for the information above and submit written proposals, resumes, and cover letters to: Elaine Beatty, City Clerk, Otsego City Hall, 8899 Nashua Avenue NE, Elk River, MN 55330. Telephone: (612) 441 -4414. Proposals must be received on or before September 2. 1997 at 5 p.m. POLICE OFFICERS. Taylors Falls (population 800) is currently establishing an eligibility list for the future employ- ment of full- and part -time police officers. Duties include general law enforcement and patrol duties. Must be able to operate patrol vehicles, have the ability to work evenings. weekends, holidays and rotating shifts, and be physically and emotionally qualified to perform the armed duties of a peace officer as defined by MSS 626.84. Requirements include: currently licensed Minnesota peace officer with full -time license or eligible to be licensed. Applica- tions available at Taylors Falls City Hall, 637 First Street, Taylors Falls, MN 55084, Monday through Friday, 8 a.m. to 5 p.m. Telephone: (612) 465 -5133. Fax: (612) 465 -4603. Applications accepted until 5 p.m. on September 5, 1997. PUBLIC WORKS SUPERINTEN- DENT. Rush City is seeking a public works superintendent. Responsible for all departmental operations including streets and highways, wastewater plant, water plant, airport, parks, and buildings and grounds. Position requires a minimum of five years experience in a public works or similar supervisory capacity. Applicants must have a Class B Minnesota driver's license, experience in heavy equipment operation, and must also possess, or satisfy licensing requirements during the probationary period, Class D waterworks operator and Class D wastewater operator Handbook for Minnesota Cities licenses. Starting salary range is $29,100 to $37,900 depending on qualifications. Excellent fringe benefits. Applications and position description available at Rush City Hall, PO Box 556, 325 West Fifth Street, Rush City, MN 55069. Telephone: (320) 358 -4743. Application deadline is August 22, 1997. SECRETARY/RECEPTIONIST. Mound is seeking a secretary /receptionist. Responsibilities include: provide secre- tarial support to the city manager; greet and direct citizens to appropriate depart- ments both to person and on the telephone; operate the main switchboard for city hall; process incoming and outgoing mail; respond to general inquiries about the city and its government; respond to public works /utilities and community service calls; assist utility billing department with collection of utility payments; operate copy machine, fax machine, computer and other office equipment; assist city clerk in the preparation of packets for city council meetings; purchase office supplies; maintain inventory of office supplies and THE SEVENTH EDITION OF THE IIANDBOOR FOR MINNESOTA CITIES Is AVAILABLE. No CITY CLERK, ADMINISTRATOR, ATTORNEY OR COUNCILMEMBER SHOULD BE WITHOUT THIS COMPREHENSIVE REFERENCE MANUAL. Information on: • Form and structure of the Minnesota cry • Elections, elected officials and council meetings • Personnel management • Regulatory and development functions of cities • Liability • Finance, budgeting and debt • Financial reports and records management References to additional information like: • League research memos • Statutory citations • Attorney general opinions A new, user- friendly format: • Sections organized by tabs • Comprehensive index August 13, 1997 Beginning with the seventh edition, the Handbook will be updated every two years with one supplement following the 1997 session that will provide information on new laws and recent court decisions. To order. Call the League's fax library at (612) 215 -4039. Follow the instructions and choose document 63060. If calling from outside the (612) area code, dial (800) 925 -1122 and ask to be connected to the fax library. Dues paying members: $270 (includes $16.25 tax) Non- members: $325 (includes $21.00 tax) Page 17 Municipal ads continued small equipment; assist city clerk with elections and voter registration; fill in for city clerk on the taking of minutes of city council meetings when clerk is absent; manage "Adopt -A- Green- Space" program, schedule and coordinate arrangements for meetings; assist other departments where needed and work on special projects as assigned. Minimum qualifications: proficiency in word processing, typing, dictating equipment and general business practices: attention to detail and ability to work under time and workload pressure; excellent communication skills; ability to listen and gather information quickly, and accurately communicate this information professionally and precisely; and display professional attitude in all facets of the job Position requires the ability to communicate effectively with co- workers and general public. Previous public sector experience preferred. Starting salary is $23,576 per year plus excellent benefits. To obtain application and job description, contact the City of Mound, 5341 Maywood Road, Mound, MN 55364. Telephone (612) 472 -0600. Fax: (612) 472 -0620. Please attach a resume to the application. Application deadline is 4:30 p.m. on September 2, 1997. WATER/WASTEWATER OPERA- TOR Babbitt Public Utilities is accepting applications for a certified water and wastewater operator until September 12, 1997. For an application or additional information, call (218) 827 -3647 or write to City of Babbitt Public Utilities, 12 Babbitt Road, Babbitt, MN 55706. WATER /WASTEWATER OPERA- TOR. Warroad (population 1,800) is accepting applications for a water/ wastewater operator. This position reports to the utility superintendent. The position will operate a water distribution system, made up of wells, and operate a wastewa- ter stabilization ponds and collection system to conform to state and federal Clean Water Act with the assistance of others, as well as assist other departments as required. Requirements include a Class D operator's license in both water and wastewater from the state of Minnesota. I Need help with your snowplowing policy? Snowplow Policy Workshops Wednesday, September 3—St Paul Tuesday, September "arshall Dmrsday, Septemberll— fibbing League of Minnesota Cities Building Marshall Municipal Utilities Building Hibbing Memorial Budding How would you like to leave a workshop with a new snowplowing policy ready for adoption? As part of the Loss Control Department's training seminars, LMCIT is again offering half -day Snow Plowing Policy Workshops Goals of the workshop are to explain good snow plowing practices, review participants' existing plowing policies, and assist cities in up- dating or developing their own policy Ideally, all attendees will de- part the workshop with a new individually - tailored policy in hand and an optional copy on computer disk The workshop will require that you bring existing snow plowing poli- cies, city maps depicting current plowing routes; and knowledge of the type of computer software available at your city office Enrollment is being limited to 30 participants at each workshop Three workshops will be held from 8'30 a.m to noon Page 18 -- - The position requires very good working experience with general maintenance and mechanics; working knowledge of computerized systems: and working experience operating equipment. Resumes can be sent to the city administrator at City of Warroad, Box 50, Warroad, MN 56763. Deadline is August 22, 1997 For sale EQUIPMENT. Sealed bids will be received in Pipestone City Hall Council Chambers. 119 Second Avenue SW, Pipestone, MN 56164 until 5 p.m on Thursday, August 28. 1997. The city council will meet at 6:30 p.m. on Tuesday, September 2, 1997 to consider bids for the following pieces of equipment. Eight Rayfo J style recycle containers, bottom loading with one poly lid on top, front loading door 12 inch opening, fork pockets. Container measurements: width- - 48 inches O.L side measurement, front - -36 inches O.L., and height - -60 inches O.L. back measurement. 1983 Caterpillar Mc30 For more information or to register The registration fee, which includes morn- ing refreshments, is lust $10 Because space is limited, the fee is refundable only if cancellation is made five days in ad- vance. To obtain a registration form call the LMC fax library at (612) 215 -4039, follow the instructions and request docu- ment #66200 For more information call Tina Folch- Freiermuth, LMCIT Loss Control Assistant, at (612) 215 -4069 or (800) 925 -1 122 or tfolch @lmnc.org. LMC Cities Bulletin Municipal ads continued electric lift truck, 3,000 pounds capacity, 191 inches max fork height, 83 inches overall lowered, full free triple mast, 42 inch forks, 48 volt battery (one year old), Exide SSC -24 -500 charger. GPI Baler M42BC 1993 model. Bale size: 22 inches x 42 inches, 200 to 300 pounds. GPI Baler M60STD 1994 model. Bale size: 30 inches x 60 inches x 51 inches, 1,000 pounds. Bids shall be received in a sealed envelope with a statement showing the item covered by the bid. Bids should be addressed and mailed to: City Administrator, 119 Second Avenue SW, Pipestone, MN 56164, or may submitted personally to the city adminis- trator. Bids received in the mail or personally by the city administrator after the time set for receiving them, may be returned unopened. No bids will be considered unless sealed and accompanied by a cash deposit, bid bond, or certified check payable to the City of Pipestone in the amount of at least 10 percent of amount of net bid. No bidder may withdraw his or her bid within 45 days after scheduled time of opening bids without the consent of the city. The city council reserves the right to reject any and all bids. EQUIPMENT VAN. The Pine City Fire Department is accepting sealed bids until Friday, August 29, 1997, at 4:30 p.m. for a 1987 Chevrolet Step Van. Includes a 350 motor with 11,567 miles; light bar and General Electric Siren Box; wood cabinets and a four person seating bench. Unit can be viewed between 6 p.m. and 8 p.m. on August 5, 1997, at the Pine City Fire Hall, 400 Fifth Street, Pine City, MN 55063. If interested, please contact Fire Chief Paul Miller at (320) 629 -6103. FIRE TRUCK. Big Lake has for sale by bid one 1973 Ford F -750, 11,089 actual miles, five speed manual, 750 gpm, 750 gallon tank, current pump test, includes generator, four scene lights. For further information, contact Fire Chief Shawn Redepenning at (612) 263 -3456. Accepting bids until 4 p.m. on September 29, 1997. Send bids to: City of Big Lake, PO Box 250, Big Lake, MN 55309. The city reserves the right to reject any and all bids. FIRE TRUCK. Staples will be accepting sealed bids for the sale of a 1974 Chevrolet C65 fire truck. The truck is equipped with a 427 V -8 gas engine, five - speed manual transmission, Bean Model HPV 750 apparatus, 500 - gallon tank, and various pieces of firefighting equipment. A list of equipment can be obtained by contacting the City Clerk's Office. Bidders may contact the fire chief at (218) 894- 2178 for further information and an appointment to examine the truck. Bids will be accepted at the City Clerk's Office until 2 p.m. on September 15, 1997. Bids should be addressed to: City Clerk's Office, City of Staples, 611 Iowa Avenue North, Staples, MN 56479 in a sealed envelope marked "Fire Truck Bid" The city reserves the right to reject any and all bids and to waive any technicalities. SIREN. Greenbush has for sale a fire warning siren. Federal signal. Model 5A, serial number NO] 1433G83. $500. For additional information, call (218) 782- 2570. r Once again the spring LMCIT Safety and Loss Control Workshops had a great turn out! Over 1,000 city employees registered for the For more information or to register eight workshops that took place around the state in April. The work- shops attracted many different personnel from our member cities; the The registration fee includes a Safety and largest groups were public works employees, administrative staff Loss Control Workshop Manual, refresh - and insurance agents. ments and lunch. Registration fee is $15 Due to flooding, the April 9th workshop that was scheduled for Moorhead had be per person. There is no fee for substitutions or cancellations; however, if you are to cancelled. We have rescheduled the aware of scheduling conflicts in advance, Moorhead workshop and added a second workshop for St. Cloud. please call. To obtain a registration form call the LMC fax library at (612) 215 - These two new dates will be repeats of the 1997 Safety and Loss 4039, follow the instructions and request Control Workshops that took place in April. For those of you who document #66180. For more information were too busy in the spring, here is your chance to attend this call Tina Folch - Freiermuth, LMCIT Loss Con - valuable opportunity to exchange information with your peers. trol Assistant, at (612) 215 -4069 or (800) The workshops will be held from 8 a.m. to 3:30 p.m 925-1122 or tfolch@lmnc.org. August 13, 1997 Page 19 September 23— Moorhead • September 24—St. Cloud FIRST CLASS U.S. POSTAGE PAID LMC St. Paul, . 3 PERMIT NO. 3223 League of M xxesota Cities Cilia. prmnot Ing aW JM. 145 University Avenue West St. Paul, MN 55103 Phone: 612. 281.1200 F": 612-281-1299 TDD:612- 281.1290 1- 800.925 -1122 w .lmnc.orQ frfrfufrfrnffnnfffnrfffnunffrfuffurf rfrrff nrfrffnf The League of Minnesota Cities publishes the DON ASHWORTH Cities Bulletin weekly during the Legislative session and bi- weekly during the interim, the MGR. time between sessions. Subscriptions: PO BOX 147 members-540: non- members-S60. Contact: CHANHA S SEN MN 55317-0147 Communications Department. League of Minnesota Cities. Where to get information at the Capitol League of Minnesota Cities staff working with legislative issues Copies of buls House Chief Clerk's Office - Jim Miller, Executive Director 296 -2314, Rm. 211* (612) 281 -1205 jmiller @lmnc.org Secretary of Senate's Office - 296 -2343, Rm. 231* Gary Carlson, Director of Intergovernmental Relations (612) 281 -1255 gcarlson @lmnc.org Bill status, authors, companion, General revenue sources for cities committee referral (by bill number, Local government trust fund author, or topic) Aid to cities House Index - 296 -6646, Property tax system Rm. 211 * Senate Index - 296 -2887, Andrea Stearns, Intergovernmental Relations Representative Rm. 231* (612) 281 -1258 steams @lmnc.org Electric utility deregulation Weekly committee schedules, bill Local/tribal relations introductions, and summaries of Tax increment financing committee and floor action Land use House Information Office - Economic development and redevelopment 296 -2146, Rm. 175 ** Fiscal issues Senate Information Office - 296 -0504, Rm. 231* Ann Higgins, Intergovernmental Relations Representative (612) 281 -1257 ahiggins @lmnc.org Recording of the following day's Telecommunications committee schedule and agenda, Housing (after 4:30 p.m.) Elections and ethics "House Call" - 296 -9283 Utility service districts Senate Hotline - 296 -8088 Eric Willette, Legislative Policy Analyst To reach a member on the House or (612) 281 -1263 willette @Imnc.org Senate floor House Sergeant at Arms - Mary Diedrich, Legislative Secretary 296 -9749 (612) 281 -1259 diedrich @Imnc.org Senate Page Desk - 296 -4159 Mickey Ojard, Legislative Secretary To notify the governor's office of (612) 281 -1261 ojard @lmnc.org your concerns Governor Ame Carlson - 296 -3391, Rm. 130* *State Capitol, St. Paul, MN 55155 * *State Office Building, St. Paul 55155 All area codes are 612 CITY OF CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 August 13, 1997 Mr. Bill Monk City Engineer City of Chaska One City Hall Plaza Chaska, MN 55318 Re: Joint Powers Agreement for Proposed Traffic Signal at Trunk Highway 41/82" Street Intersection - File No. PW067E -1 Dear Bill: Staff has reviewed the most recent draft of the 82n Street traffic signal agreement between the cities of Chanhassen and Chaska and finds it to be acceptable. I would request that the last sentence of section 4, page 3 be clarified. I propose that that sentence be modified to read as follows: "It being understood that the City of Chanhassen will be responsible for up- fronting the payment of labor and materials supplied during construction of the project." This is just a clarification even though you and I understand the intent of the way the sentence originally was but to avoid any confusion by anyone else I would recommend the change. Once you have a final draft of this document I too will schedule it for an upcoming City Council meeting for approval and execution. If you have any questions or comments, please feel free to contact meat 937 -1900, extension 114. Thanks, Bill! Sincerely, CITY OF CHANHASSEN (:::: I - Charles D. Folch, P.E. Director of Public Works CDF:ktm c: Don Ashworth, City Manager Dave Hempel, Assistant City Engineer Phil Gravel, Bonestroo g.1cng`char1es1Jetters4nonk.doc CARVER COUNTY SHERIFF'S DEPARTMENT AREA REPORT PERIOD ENDING 07 -31 -97 FOR: CHANHASSEN CITY Description This Year Last Year Current YTD Current YTD Month Month Assault 2 19 2 29 Burglary 4 26 7 42 Drug Violation 1 13 1 10 Disturbing Peace 48 249 44 187 Traffic/Alcohol Related 3 56 12 62 Misc. Criminal 26 145 33 126 Property Damage/Vandalism 37 161 41 174 Robbery 0 1 0 2 Sex Crime 5 11 2 9 Theft 25 187 42 209 Uttering /Bad Check 0 9 1 11 Vehicle Theft 1 10 1 12 Traffic Stop 97 324 0 0 TOTAL CRIMINAL 249 1211 186 873 N +HNHwH+ wNNwrwr+wN HHrHw :wH+ rw +wNN :eH+ ♦ww +w+ +wfw +N +wH++e +wwwww Abuse /Neglect 1 18 6 43 Domestic 7 67 7 56 Missing Person 10 41 9 43 Prowler 3 15 7 22 Suspicious Activity 51 270 41 236 Explosvie Permit 0 0 0 0 Alarm 50 380 61 358 Open Door 15 57 14 70 Fire 26 142 18 166 Medical 17 205 27 186 Business /Residential Check 3 16 11 33 Animal 27 264 35 212 Boat & Water 5 16 7 14 Civil Process Service 0 2 0 1 Warrant Service 8 22 0 7 Transports 0 1 0 5 Assist Other Agency 6 33 3 31 Gun Permits/Carry 0 5 0 5 Gun Permits/Acquire 0 40 1 3 Gun Permits/Transfer 0 3 0 0 Lock PO 0 0 0 1 Unlock Vehicle /Building 59 352 43 326 Motorist Assist 33 185 24 232 PD Accident 22 235 51 277 PI Accident 12 58 11 65 Fatal Accident 1 1 0 1 Traffic Misc 59 381 43 355 Misc. Non -Grim 56 325 88 391 Mental Health 1 17 0 15 TOTAL NON -CRIM 472 3151 507 3188 lwwwwwN+Nwf N+MHH +++ wwfHywHrr+r wN1w+l +wr +H HN+1wwN+fw wwwwww + +N +H N+NHw+Hr+ TOTAL REPORTED 721 4362 693 4061 Description 1997 January February March April May Assault 0 2 4 0 2 Burglary 3 4 2 7 3 Drug Violation 1 1 2 4 2 Disturbing Peace 25 24 20 28 42 Traffic/Alcohol Related 9 4 10 15 6 Misc. Criminal 11 22 10 20 23 Property Damage/Vandalism 14 7 18 31 20 Robbery 1 0 0 0 0 Sex Crime 0 0 0 2 1 Theft 32 24 18 27 44 Uttering /Bad Check 3 1 1 2 0 Vehicle Theft 1 3 2 1 1 Traffic Stop 0 0 0 49 90 TOTAL CRIMINAL 100 92 87 186 234 ! # #!#fff #f #Y! ! #1f #fYYN ##1 lfllfYlfY! #N NNfNYff1#! !#11f!!!#NYf #f!f #fffflfff fYY#!f#N!!!# fllffNfffN Abuse /Neglect 4 1 1 4 4 Domestic 10 6 9 8 15 Missing Person 3 5 4 6 4 Prowler 2 2 0 2 4 Suspicious Activity 23 34 35 36 36 Explosive Permit 0 0 0 0 0 Alarm 55 40 47 58 67 Open Door 6 6 4 15 5 Fire 27 12 14 21 17 Medical 34 28 25 26 32 Business/Residential Check 1 2 1 1 4 Animal 25 24 29 44 62 Boat & Water 1 0 0 2 0 Civil Process Service 0 0 0 1 1 Warrant Service 2 2 1 5 3 Transports 0 1 0 0 0 Assist Other Agency 5 2 3 8 5 Gun Permits/Carry 0 0 1 3 0. Gun Permits /Acquire 7 10 11 7 2 Gun Permits/Transfer 1 1 0 1 0 Lock PO 0 0 0 0 0 Unlock Vehicle /Building 52 51 38 57 43 Motorist Assist 39 21 24 22 22 PD Accident 55 37 35 23 25 PI Accident 12 7 10 2 6 Fatal Accident 0 0 0 0 0 Traffic Misc 65 33 58 52 51 Misc. Non -Crim 30 32 47 48 61 Mental Health 3 5 2 2 3 TOTAL NON -CRIM 462 362 H!! 399 #fffNillf 454 472 TOTAL REPORTED 562 454 486 640 706 Description 1997 Assault Burglary Drug Violation Disturbing Peace Traffic/Alcohol Related Misc. Criminal Property DamageNandalism Robbery Sex Crime Theft Uttering /Bad Check Vehicle Theft Traffic Stop TOTAL CRIMINAL ♦efff »... »: f » » »f»f» Abuse /Neglect Domestic Missing Person Prowler Suspicious Activity Explosive Permit Alarm Open Door Fire Medical Business /Residential Check June July August September October 9 2 3 4 2 1 62 48 9 3 33 26 34 37 0 0 3 5 17 25 2 0 1 1 88 97 263 249 3 1 12 7 9 10 2 3 55 51 0 0 63 50 6 15 25 26 43 17 4 3 Animal 53 27 Boat & Water 8 5 Civil Process Service 0 0 Warrant Service 1 8 Transports 0 0 Assist Other Agency 4 6 Gun Permits/Carry 1 0 Gun Permits/Acquire 3 0 Gun Permits/Transfer 0 0 Lock PO 0 0 Unlock Vehicle /Building 52 59 Motorist Assist 24 33 PD Accident 38 22 PI Accident 9 12 Fatal Accident 0 1 Traffic Misc 63 59 Misc. Non -Grim 51 56 Mental Health 1 1 0 0 0 TOTAL NON -CRIM 530 472 0 0 0 TOTAL REPORTED 793 721 0 0 0 CARVER COUNTY SHERIFF'S DEPARTMENT AREA REPORT MONTHLY TIME TOTALS MONTH: JULY 1997 MUNICIPALITY: CHANHASSEN TIME 00:00 -01:00 31 01:00 -02:00 33 02:00 -03:00 15 03:00 -04:00 5 04:00 -05:00 4 05:00 -06:00 7 06:00 -07:00 7 07:00 -08:00 20 08:00 -09:00 19 09:00 -10:00 22 10:00 -11:00 28 11:00 -12:00 26 12:00 -13:00 29 13:00 -14:00 24 14:00 -15:00 46 15:00 -16:00 53 16:00 -17:00 35 17:00 -18:00 40 18:00 -19:00 36 19:00 -20:00 27 20:00 -21:00 42 21:00 -22:00 57 22:00 -23:00 59 23:00 -24:00 56 TOTAL 721 1 1JTC the Telecommunications Association August 6, 1997 URGENT Dear Member Chief Executive: As this first issue of UTC Insights went to press, President Clinton signed into law the new budget legislation which included a major legislative victory for the UTC membership. UTC fought for and won an exemption from spectrum auctions for spectrum that is used by utilities and pipelines to provide vital communications in support of their core activities. This exemption will potentially save the utility and pipeline industries millions of dollars. UTC assembled a coalition of organizations representing the utility, pipeline and railroad industries to lobby Congress on this issue. UTC was able to convince Congress of the need to protect the vital communications systems of these entities, and to: Exempt spectrum used internally by utilities and pipelines from spectrum auctions. Companies that are not exempt from these auctions will be required to win the right to use new radio spectrum via competitive bidding. Congress estimates that over 20 billion will be raised over the next five years from these auctions. • Consider the needs of incumbent radio users in determining what bands of spectrum will be auctioned. Utilities and pipelines have extensive communications systems, with the estimated investment in radio equipment totaling more than $15 billion. These systems could be disrupted if the Federal Communications Commission (FCC) decides to reallocate spectrum they currently occupy. The statute requires the FCC to consider the cost of relocating existing users when deciding whether to auction a currently occupied band of spectrum. • Recommend the FCC and the National Telecommunications and Information Administration (NTIA) consider the need for additional spectrum for utilities and pipelines in the near future. UTC's work on these issues will continue before the FCC and other Federal agencies. As your telecommunications association, UTC will continue to fight on your behalf and, with your continued support, will continue to achieve victories on important issues that will permit your company to continue to thrive in the evolving legislative and regulatory climate. Cordially yours, Charles M. Meehan Executive Director