10/3/17 Shakopee City Council Meeting

Shakopee City Council
October 3, 2017
7:00 PM
City Hall 485 Gorman St.
Shakopee Mission Statement

The Mission of the City of Shakopee is to provide the opportunity to live, work and play in a community
with a proud past, promising future, and small town atmosphere within a metropolitan setting.
A. Keep Shakopee a safe and healthy community where residents can pursue active and quality lifestyles.
B. Positively manage the challenges and opportunities presented by growth, development and change.
C. Maintain the City's strong financial health.
D. Maintain, improve and create strong partnerships with other public and private sector entities.
E. Deliver effective and efficient public services by a staff of well-trained, caring and professional employees.
F. Housekeeping item.
Mayor Bill Mars presiding

1. Roll Call
2. Pledge of Allegiance
3. Approval of Agenda
4. Consent Business - (All items listed in this section are anticipated to be routine. After
a discussion by the Mayor there will be an opportunity for members of the Council to
remove any items from the consent agenda for individual discussion. Those items
removed will be considered following the Public hearing portion of the agenda. Items
remaining on the Consent Agenda will not be discussed and will be approved in one
motion.)
A. Administration
*4. A.1. *City Council Minutes
*4. A.2. *Ratify Teamsters Union Contract for 2017-19
B. Planning and Development
*4. B.1. *Set Public Hearing for Vacation of Certain Drainage and Utility Easements
in Maple Trail Estates 2nd Addition
C. Police
*4. C.1. *Surplus Property
D. Public Works and Engineering
*4. D.1. *Update City Code Chapters 50 and 90 Pertaining to Telecommunications
and Small Cell Wireless Permitting
*4. D.2. *Drainage and Utility Easement Encroachment Agreements
Page 1 of 242
5. RECOGNITION OF INVOLVED CITIZENS BY CITY COUNCIL - Provides an
opportunity for the public to address the Council on items which are not on the agenda.
Comments should not be more than five minutes in length. The Mayor may adjust that
time limit based upon the number of persons seeking to comment. This comment
period may not be used to make personal attacks, to air personality grievances, to
make political endorsements or for political campaign purposes. Council Members will
not enter into a dialogue with citizens, and questions from Council will be for
clarification only. This period will not be used to problem solve issues or to react to
the comments made, but rather for informational purposes only.
6. Business removed from consent will be discussed at this time
7. Public Hearings
7.A. Vacation of Certain Alleys and Right-of-Ways Within and Adjacent to the
Minnesota Correctional Facility
8. Recess for Economic Development Authority Meeting
9. Reconvene
10. Workshop
10.A.Discussion on Tax Increment Financing (TIF)
11. Reports
11.A.City Bill List
11.B.Liaison and Administration
12. Adjournment to October 17, 2017 at 7:00 p.m.
Page 2 of 242
*4.A.1.

October 3, 2017
FROM: Lori J. Hensen, City Clerk

TO: Mayor and Council Members
Subject:
City Council minutes from August 29 and September 19, 2017.
Policy/Action Requested:
Approve the minutes from August 29 and September 19, 2017.
Recommendation:
Approve the above motion
Discussion:
Budget Impact:
ATTACHMENTS:
August 29, 2017

September 19, 2017
Page 3 of 242
Shakopee City Council Minutes
August 29, 2017
7:00 PM

1. Roll Call
Present: Mayor William Mars, Councilmember Mike Luce, Councilmember Matt Lehman,
Councilmember Jay Whiting, Councilmember Kathi Mocol
Staff Present: Administrator Bill Reynolds, Assistant Administrator Nate Burkett, City
Attorney Jim Thomson, Finance Director Darin Nelson, Planning and Development
Director Michael Kerski, Fire Chief Rick Coleman, Police Chief Jeff Tate, Park and
Recreation Director Jamie Polley, Engineering and Public Works Director Steve Lillehaug,
City Clerk Lori Hensen
Councilmember Kathi Mocol made a motion to approve agenda, seconded by

Councilmember Jay Whiting and the motion passed.
5-0
motion.)
Councilmember Matt Lehman made a motion to approve the consent agenda, seconded by
Councilmember Jay Whiting and the motion passed.
5-0
A. Administration
*4. A.1. *Tobacco License for Hy-Vee Gas Station
Approve the application and grant a tobacco license to Hy-Vee, Inc. dba Hy-Vee Gas
at 1421 Adams Street. (Motion was carried under consent agenda.)
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5. Workshop
5.A. Preliminary Budget and Levy Review
Councilmember Matt Lehman made a motion to recess, seconded by

Councilmember Kathi Mocol and the motion passed.
5-0
5.B. Comprehensive Plan Amendment for Entertainment Land Use
5.C. High Density Housing Overview
6. Adjournment to September 5, 2017 at 7:00 p.m.
Councilmember Jay Whiting made a motion to adjourn to September 5, 2017 at 7:00

p.m., seconded by Councilmember Kathi Mocol and the motion passed.
5-0
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2
Shakopee City Council Minutes
September 19, 2017
7:00 PM

1. Roll Call
Present: Mayor William Mars, Councilmember Jay Whiting, Councilmember Kathi Mocol,
Councilmember Mike Luce, Councilmember Matt Lehman
Attorney Jim Thomson, Engineering and Public Works Director Steve Lillehaug, Parks and
Recreation Director Jamie Polley, Planning and Development Director Michael Kerski,
Fire Chief Rick Coleman, City Clerk Lori Hensen, Senior Planner Eric Weiss
Administrator Bill Reynolds removed item 4.A.5. from the agenda.
Councilmember Jay Whiting made a motion to approve the agenda as amended, seconded
by Councilmember Kathi Mocol and the motion passed.
5-0
motion.)
Councilmember Whiting asked to move item 10.B.6. to consent agenda
Councilmember Matt Lehman made a motion to approve consent agenda as amended,

seconded by Councilmember Mike Luce and the motion passed.
5-0
A. Administration
*4. A.1. *Declare Amounts, Order the Preparation of Proposed Assessments, Set a
Public Hearing Date for Delinquent False Alarm & Mowing Service Bills
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Adopt Resolution No.7926, A Resolution Declaring the Amount to be Assessed,
Ordering the Preparation of Proposed Assessments, and Setting the Public Hearing
Date for Delinquent Ordinance Services. (Motion was carried under consent agenda.)
*4. A.2. *Declare Amounts, Order the Preparation of Proposed Assessments, Set a
Public Hearing Date for Delinquent Refuse Bills
Adopt Resolution No. 7928, a resolution declaring the amount to be assessed,
ordering the preparation of proposed assessments, and setting the public hearing date
for delinquent refuse bills. (Motion was carried under consent agenda.)
*4. A.3. *Write-off Delinquent Sewer and Storm Drainage Accounts
Approve writing-off delinquent sewer and storm drainage accounts from December
31, 2015 and prior in the amounts of $95,693.64 and $45,194.69, respectively.
(Motion was carried under consent agenda.)
*4. A.4. *City Council Minutes
Approve the minutes from September 5, 2017. (Motion was carried under consent
agenda.)
*4. A.5. *Massage Business and Massage Therapist License for Stephanie LaBeau
Memo was removed from agenda.
*4. A.6. *Consumption and Display License for Shakopee Brew Hall
Approve the consumption and display license for Dilemma Brewing Co. dba
Shakopee Brew Hall at 124 First Avenue East. (Motion was carried under consent
agenda.)
*4. A.7. *On-sale, Off-sale and Sunday Liquor Licenses for Hy-Vee
Approve the On-sale and Sunday liquor licenses for Hy-Vee Market Grille located at
1451 Adams Street South Suite A. (Motion was carried under consent agenda.)
Approve the Off-sale and Sunday liquor licenses for Hy-Vee Wine & Spirits located
at 1451 Adams Street South Suite B. (Motion was carried under consent agenda.)
B. Parks and Recreation

*4. B.1. *Hiring of Lead Lifeguards
Approve the hiring of two Lead Lifeguards at Grade 1 of the 2017 Non-Union Pay
Plan beginning immediately in 2017. (Motion was carried under consent agenda.)
*4. B.2. *Donation from the Shakopee Lions Club for Senior Transportation
Accepting a donation from the Shakopee Lions Club for Senior Transportation.
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C. Planning and Development
*4. C.1. *Interim Use Permit for Storage of Semi-Trailers at Valleyfair
Approve Resolution No 7932, a resolution approving an Interim Use Permit request
to allow temporary storage of semi-trailers on Valleyfair property. (Motion was
carried under consent agenda.)
D. Police
*4. D.1. *Surplus Property
Declare seven forfeited vehicles as surplus property and authorize their disposal.
*4. D.2. *Towards Zero Death Grant, Res. No. 7927
Adopt Resolution No. 7927, Accepting the 2017-2018 Towards Zero Deaths Grant.
*4. D.3. *Surplus Bikes/Miscellaneous
Declare the listed property as surplus and authorize its disposal. (Motion was carried
under consent agenda.)
E. Public Works and Engineering
*4. E.1. * Lateral Sewer Connection Charge for Whispering Oaks Sanitary Sewer
Extension
Adopt Ordinance 969, amending the citys fee schedule by adding a lateral sanitary
sewer connection charge for the Whispering Oaks Sanitary Sewer Extension Project
No. 2017-3. (Motion was carried under consent agenda.)
*4. E.2. *Vierling Drive Utility Extension Project 2017-10
Approve plans and order advertisement for bids for the Vierling Drive Utility
Extension Project 2017-10. (Motion was carried under consent agenda.)
*4. E.3. *Roadway De-icing Salt Cooperative Purchasing Venture
Authorize the purchase of roadway de-icing salt using the Minnesota Department of
Transportation Road Salt Cooperative Purchasing Venture. (Motion was carried
under consent agenda.)
5. RECOGNITION OF INVOLVED CITIZENS BY CITY COUNCIL - Provides an
opportunity for the public to address the Council on items which are not on the agenda.
Comments should not be more than five minutes in length. The Mayor may adjust that
time limit based upon the number of persons seeking to comment. This comment
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period may not be used to make personal attacks, to air personality grievances, to
make political endorsements or for political campaign purposes. Council Members will
not enter into a dialogue with citizens, and questions from Council will be for
clarification only. This period will not be used to problem solve issues or to react to
the comments made, but rather for informational purposes only.
6. Business removed from consent will be discussed at this time
7. Public Hearings
7.A. Vacation of certain alleys and rights-of-way within and adjacent to the Minnesota
Correctional Facility - Shakopee
Councilmember Matt Lehman made a motion to open the public hearing, seconded by
5-0
Councilmember Matt Lehman made a motion to continue the public hearing to

October 3, 2017 at 7:00 p.m., seconded by Councilmember Mike Luce and the
motion passed.
5-0
8. Recess for Economic Development Authority Meeting
9. Reconvene
10. General Business
A. Parks and Recreation

10. A.1. Community Center 2018 Membership Rates
Councilmember Matt Lehman made a motion to approve the 2018 Community

Center membership rates as recommended by the Parks and Recreation Advisory
Board (PRAB)., seconded by Councilmember Kathi Mocol and the motion passed.
4-1
Nays: Whiting
B. Administration
10. B.1. Council Continued Concerns Regarding the Conduct of Councilor Luce
Councilmember Matt Lehman made a motion to adjourn for a 10 minutes recess,
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seconded by Councilmember Mike Luce and the motion passed.
5-0
10. B.2. Refuse and Recycling Fees and Charges
Councilmember Jay Whiting made a motion to approve an increase of $0.16/per user,

per month to refuse and recycling collection fees in accordance with the request by
Republic Services under their existing contract and approve an increase of $2.34/per
user, per month to refuse and recycling disposal fees due to increased tipping fee
costs and authorize disposal at Great River Energy Processing Facility in Elk River,
MN provided the facility meets the requirements of Section 3A of the existing
contract between Republic Services and the City of Shakopee., seconded by
Councilmember Matt Lehman and the motion passed.
5-0
10. B.3. 2018 Proposed Property Tax Levy, General Fund Budget and Debt Levy
Cancellations, Res. Nos. 7929 & 7930
Councilmember Jay Whiting made a motion to adopt Resolution Nos. 7929 and
7930, setting the proposed maximum 2017 property tax levy collectible in 2018, and
canceling certain debt service levies for taxes payable in 2018., seconded by
5-0
10. B.4. Consider EDA Special Benefit Levy and Preliminary Budget for 2018
Councilmember Jay Whiting made a motion to adopt Resolution No. 7931

consenting to the Economic Development Authority in and for the City of Shakopee
adopting a proposed special benefit levy collectible in 2018., seconded by
3-2
Nays: Lehman, Luce
10. B.5. Approval of 2018-2022 Capital Improvement Plan (CIP)
Councilmember Jay Whiting made a motion to adopt the 2018-2022 Capital

Improvement Plan (CIP), seconded by Councilmember Kathi Mocol and the
motion passed.
5-0
10. B.6. Monthly Financial Review - August 2017
Discussion on the year-to-date General Fund revenues and expenditures along with
the Community Center and Ice Arena year-over-year operations comparison. (Motion
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was carried under consent agenda.)
C. Planning and Development
10. C.1. Envision Shakopee Plan Charter
Councilmember Jay Whiting made a motion to approve the Plan Charter as a

working document of Envision Shakopee., seconded by Councilmember Kathi Mocol
and the motion passed.
3-2
Nays: Lehman, Luce
10. C.2. Resolution Designating Buildings as Structurally Substandard within
Shakopee Redevelopment Project
Councilmember Kathi Mocol made a motion to approve resolution No. 7920

designating buildings as structurally substandard within the Shakopee Redevelopment
Project, seconded by Councilmember Jay Whiting and the motion passed.
3-2
Nays: Lehman, Luce
10. C.3. Set date for Public Hearing on Tax Increment Finance Plan for
Redevelopment District No. 18
Councilmember Matt Lehman made a motion to set public hearing date for
November 8, 2017, seconded by Councilmember Jay Whiting and the motion passed.
5-0
10. C.4. Advertisement for Bids for the Removal of Hazardous Materials and
Demolition of former City Hall
Councilmember Jay Whiting made a motion to authorize advertisement for bids and
retain RJM as the owner's agent for a cost not to exceed $24,000., seconded by
5-0
10. C.5. Resolution Authorizing an Interfund Loan for Advance of Certain Costs in
Connection with Proposed Tax Increment Financing District
Councilmember Kathi Mocol made a motion to approve resolution 7921 authorizing

reimbursement of qualified costs incurred by the city as part of redevelopment for
$300,000, seconded by Councilmember Jay Whiting and the motion passed.
3-2
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Nays: Lehman, Luce
10. C.6. Acceptance of Sculpture and Grant from the Shakopee Mdewakanton Sioux
Community
Councilmember Matt Lehman made a motion to accept the donation from the
Shakopee Mdewakanton Sioux Community of the sculpture and $50,000 for its
restoration and installation in Downtown Shakopee and authorize staff to enter into the
appropriate agreements and contracts for same, seconded by Councilmember Mike
Luce and the motion passed.
5-0
11. Workshop
11.A.Comprehensive Plan Amendment for Entertainment Land Use
12. Reports
12.A.City Bill List
12.B.Liaison and Administration
13. Other Business
14. Adjournment to October 3, 2017 at 7:00 p.m.
Councilmember Jay Whiting made a motion to adjourn to October 3, 2017 at 7:00

p.m., seconded by Councilmember Kathi Mocol and the motion passed.
5-0
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*4.A.2.

October 3, 2017
FROM: Jennifer Gabbard

TO: Mayor and City Council
Subject:
Resolution 7934, ratifying the Teamsters Union Contract for 2017-2019
Approve resolution 7934.
Recommendation:
Approval of Resolution 7934, ratifying the Teamsters Union Contract for 2017-2019. This
represents an equitable agreement in line with other agencies, keeping us competitive in the
employment marketplace, and recognizing the excellent work of our public works
department.
Discussion:
The contract with the Teamsters union expired on December 31, 2016. The City has held
multiple negotiating meetings with representatives of the Teamsters union to arrive at the
attached contract.
The negotiated contract includes the following:

1. Article 3 Definitions
We defined what a seasonal employee was, and that we could have employees that
work from April to October of each year.
2. Article 9 Work Schedules

We agreed to provide as much advance notice as possible of unusual circumstances
that require work.
3. Article 10 Overtime
We moved the date that we buy down comp time to one that is more administratively
functional.
Page 13 of 242
Additionally, we agreed on new provision about how the city provides overtime for its
employees under this contract, and what the agreed upon process is.
We provided a $25 increase in the uniform allowance for the life of the contract. The
expired contracts uniform allowance was $875, this contract will bring it up to $900
for all three years of the contract.
4. Article 12 Early Call-In Pay

We agreed on wage increase for early call-in pay. It went from $3.00 an hour to $4.25
an hour.
5. Article 15 Discipline
We agreed on sunset terms for discipline, which is a best practice.
6. Article 22 Vacations
We agreed to new terms for scheduling vacations.
7. Article 25 Sick Leave

We agreed to allow an employee who has a Sick Leave Bank balance to convert those
hours over to the Post-Employment Health Care Savings Plan at a conversion rate of 3
to 1 hours.
8. Article 26 Post-Employment Health Care Savings Plan

We corrected the amount that is provided to employees on a monthly basis for having
our health insurance. It had previously been $25, but was increased to $35 in 2015.
9. Article 28 Coveralls/Uniforms/Footwear
We agreed on new terms for uniforms. Increased the footwear allowance to $175 per
year, and will now allow footwear accessories to be a part of the footwear allowance.
10. Article 31 Wages

We agreed on a 3% general wage increase each year of the contract, and we feel that a
3% wage increase for each year of the contract is a reasonable increase, based on some
concessions made by the union for the new contract.
Additionally, we cleaned up the locations of some of the information in this article that
was elsewhere in the contract. We also provided an opportunity regarding a wage
reopener, if needed.
11. Article 33 Duration

We agreed to a three-year duration for the new contract. It would be valid January 1,
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2017 to December 31, 2019.
12. Appendix A Wages

The amounts listed in Appendix A were increased 3% over the 2016 rates, each year of
the life of the contract.
13. Appendix C Post Employment Health Care Savings Plan (HCSP)

The union had already voted to increase their HCSP payroll contributions.
We also updated the Citys contribution to the HCSP, which went from $25 to $35 in
2015.
Budget Impact:
Funding for the 3% wage increase for 2017 is available within the current 2017 budget. The
wage increases for 2018 and 2019 will need to be planned for in their respective budgets.
Footwear allowance has a budgetary impact of $625 per year, $1,875 for the life of the
contract.
The changes to the uniform article is a cost savings for the city.
The budgetary impact for early call-in pay in 2017 is $2,971.27. The budgetary impact for
2016 would have been $5,945.72.
ATTACHMENTS:
Resolution 7934 - Ratifying the Teamsters Union Contract 2017-2019

Red-Lined Teamsters Contract 2017-2019
Final Teamsters Contract - 2017-2019
Page 15 of 242
RESOLUTION NO. 7934
A RESOLUTION RATIFYING THE TEAMSTERS UNION CONTRACT FOR 2017-2019
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE,

MINNESOTA, that the City of Shakopee has ratified the Minnesota Teamsters Employee Union
Local 320 Contract.
BE IT FURTHER RESOLVED, that the parties have negotiated and agreed upon the terms
and conditions of employment for bargaining unit employees from January 1, 2017 through
December 31, 2019.
Adopted in adjourned regular session of the City of Shakopee, Minnesota, held this 3rd
day of October 2017.
_____________________________
Mayor of the City of Shakopee
ATTEST:
_______________________________
City Clerk
Page 16 of 242
LABOR AGREEMENT
BETWEEN
THE CITY OF SHAKOPEE
AND
MINNESOTA TEAMSTERS
PUBLIC AND LAW ENFORCEMENT EMPLOYEES UNION
LOCAL NO. 320
Public Works
Effective January 1, 2014 2017 December 31, 20162019
Page 17 of 242
INDEX
ARTICLE SUBJECT PAGE

Article 1 PURPOSE OF AGREEMENT 3
Article 2 RECOGNITION 3
Article 3 DEFINITIONS 3
Article 4 EMPLOYER SECURITY 4
Article 5 EMPLOYER AUTHORITY 4
Article 6 EMPLOYEE RIGHTS - GRIEVANCE 5
Article 7 UNION SECURITY 6
Article 8 SAVINGS CLAUSE 6
Article 9 WORK SCHEDULE 7
Article 10 OVERTIME 7
Article 11 CALL BACK 8
Article 12 EARLY CALL-IN PAY 8
Article 13 LEGAL DEFENSE 8
Article 14 SUBCONTRACTING WORK 8
Article 15 DISCIPLINE 8
Article 16 SENIORITY 9
Article 17 PROBATIONARY PERIODS 9
Article 18 SAFETY 9
Article 19 JOB POSTING 10
Article 20 INSURANCE 10
Article 21 HOLIDAYS 10
Article 22 VACATIONS 11
Article 23 SICK LEAVE 11
Article 24 FUNERAL LEAVE 11
Article 25 SEVERANCE PAY 11
Article 26 POST EMPLOYMENT HEALTH CARE SAVINGS PLAN 12
Article 27 INJURY ON DUTY 12
Article 28 COVERALLS/UNIFORMS/FOOTWEAR 12
Article 29 REPLACEMENT 12
Article 30 REQUIRED LICENSES 12
Article 31 WAGES 13
Article 32 LICENSE/CERTIFICATION PAY 13
Article 33 RESPONSE TIME REQUIREMENT 13
Article 34 WAIVER 14
Article 35 MEET AND CONFER 14
Article 36 DURATION 14
APPENDIX A SALARY SCHEDULE 15
APPENDIX B LICENSURE & CERTIFICATION PAY 16
APPENDIX C POST EMPLOYMENT HEALTH CARE SAVINGS PLAN 17
Page 18 of 242
ARTICLE 1. PURPOSE OF AGREEMENT
This Agreement is entered into between the City of Shakopee, hereinafter called the Employer, and the
Minnesota Teamsters Public and Law Enforcement Employees Union, Local No. 320, hereinafter called the
Union, the intent and purpose of this Agreement is to:
1.1 Establish certain hours, wages and other conditions of employment;
1.2 Establish procedures for the resolution of disputes concerning this Agreement's interpretation and/or
application;
1.3 Specify the full and complete understanding of the parties, and;
1.4 Place in written form, the partys agreement, upon terms and conditions of employment for the duration of
this Agreement.
The Employer and the Union, through this Agreement, continue their dedication to the highest quality of public
service. Both parties recognize this Agreement as a pledge of this dedication.
ARTICLE 2. RECOGNITION
2.1 The Employer recognizes the Union as the exclusive representative, under Minnesota Statutes, Section
179A.03, Subd. 14 in an appropriate bargaining unit consisting of the following job classifications:
Mechanic
Maintenance Operator
Mechanic Apprentice
ARTICLE 3. DEFINITIONS
3.1 UNION: The Minnesota Teamsters Public and Law Enforcement Employees Union, Local No. 320.
3.2 EMPLOYER: The City of Shakopee
3.3 UNION MEMBER: A member of the Minnesota Teamsters Public and Law Enforcement Employees
Union, Local No. 320.
3.4 EMPLOYEE: A member of the exclusively recognized bargaining unit.
3.5 BASE PAY RATE: The employee's hourly pay rate exclusive of longevity or any other special allowance.
3.6 SEVERANCE PAY: Payment made to an employee upon honorable termination of employment.
3.7 OVERTIME: Any employee working more than 40 hours in a seven day period is to be paid at the
overtime rate for the time worked which exceeds 40 hours. Time compensated worked shall include hours
actually worked and hours compensated for, including vacation, sick and comp time taken. Payment is
not to be made for time that is taken without pay.
3.8 CALL BACK: Return of an employee to a specified work site to perform assigned duties at the express
authorization of the Employer at a time other than an assigned shift. An extension of or early report to an
assigned shift is not a call back.
3
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3.9 STRIKE: Concerted action in failing to report for duty, the willful absence from one's position, the
stoppage of work, slow-down, or abstinence in whole or in part from the full, faithful and proper
performance of the duties of employment for the purposes of inducing, influencing or coercing a change
in the conditions or compensations or the rights, privileges or obligations of employment.
3.10 SEASONAL EMPLOYEES: Employees hired on a temporary, part-time or seasonal basis for the
department, may work continuously in this capacity from April to October of each year. Upon completion
of work for the department, these employees shall not be eligible for other temporary, and or seasonal
employment within the City until April of the next year. Employees employed by the City on a temporary,
part-time or seasonal basis will be paid at the rate determined by the Employer for the term of their
employment, provided it does not exceed the way of any current bargaining unit member. Such
employees shall not be eligible for any benefits under this labor agreement between the employer and the
union, except those which may be required by law. Seasonal employees will count toward any payment of
lead workers if said payment includes directing seasonal employees.
ARTICLE 4. EMPLOYER SECURITY
4.1 The Union agrees that during the life of this Agreement, it will not cause, encourage, participate in or
support any strike, slow-down or other interruption of or interference with, the normal functions of the
Employer.
4.2 Any employee who engages in a strike may have his/her appointment terminated by the Employer
effective the date the violation first occurs. Such termination shall be effective upon written notice served
upon the employee.
4.3 An employee who is absent from any portion of his/her work assignment without permission, or who
abstains wholly or in part from the full performance of his/her duties without permission from his/her
Employer on the date or dates when a strike occurs is prima facia presumed to have engaged in a strike
on such date or dates.
4.4 An employee who knowingly strikes and whose employment has been terminated for such action may,
subsequent to such violation, be appointed or reappointed or employed or re-employed, but the employee
shall be on probation for two years with respect to such civil service status, tenure of employment, or
contract of employment, as he/she may have therefore been entitled.
4.5 No employee shall be entitled to any daily pay, wages or per diem for the days on which he/she engaged
in a strike.
ARTICLE 5. EMPLOYER AUTHORITY
5.1 The Employer retains the full and unrestricted right to operate and manage all manpower, facilities and
equipment; to establish functions and programs; to set and amend budgets; to determine the utilization of
technology; to establish and modify the organizational structure; to select, direct and determine the
number of personnel; to establish work schedules and perform any inherent managerial function not
specifically limited by this Agreement.
5.2 Any term and condition of employment not specifically established or modified by this Agreement shall
remain solely within the discretion of the Employer to modify, establish or eliminate.
5.3 The Employer will meet and confer with the Union over policy changes. In addition, the City will form a
Labor/Management Committee to facilitate open communication and cooperation between the city and
our unions.
4
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.
ARTICLE 6. EMPLOYEE RIGHTS - GRIEVANCE PROCEDURE
6.1 Definition of a Grievance. A grievance is defined as a dispute or disagreement as to the interpretation or

application of the specific terms and conditions of this Agreement.
6.2 Union Representatives. The employer will recognize Representatives designated by the Union as the
grievance representatives of the bargaining unit having the duties and responsibilities established by this
Article. The Union shall notify the Employer, in writing, of the names of such Union Representatives and
of their successors when so designated, as provided by Section 6.2 of this Agreement.
6.3 Processing of a Grievance. It is recognized and accepted by the Union and the Employer that the
processing of grievances as hereinafter provided, is limited by the job duties and responsibilities of the
employees and shall therefore be accomplished during normal working hours only when consistent with
such employee duties and responsibilities. The aggrieved employee and a Union Representative shall be
allowed a reasonable amount of time without loss in pay when a grievance is investigated and presented
to the Employer during normal working hours provided that the employee and the Union Representative
have notified and received the approval of the designated supervisor, who has determined that such
absence is reasonable and would not be detrimental to the work programs of the Employer.
6.4 Procedure. Grievances, as defined by Section 6.1, shall be resolved in conformance with the following
procedure.
Step 1. An employee claiming a violation concerning the interpretation or application of this

Agreement shall, within twenty-one (21) calendar days after such alleged violation has occurred,
present such grievance to the employee's supervisor as designated by the Employer. The
Employer-designated representative will discuss and give an answer to such Step 1 grievance
within ten (10) calendar days after receipt. A grievance not resolved in Step 1 and appealed to
Step 2 shall be placed in writing, setting forth the nature of the grievance, the facts on which it is
based, the provision or provisions of the Agreement allegedly violated, the remedy requested and
shall be appealed to Step 2 within ten (10) calendar days after the Employer-designated
representative's final answer in Step 1. Any grievance not appealed in writing to Step 2 by the
Union, within ten (10) calendar days shall be considered waived.
Step 2. If appealed, the written grievance shall be presented by the Union and discussed with the
Employer-designated Step 2 representative. The Employer-designated representative shall give
the Union the Employer's Step 2 answer in writing within ten (10) calendar days after receipt of
such Step 2 grievance. A grievance not resolved in Step 2 may be appealed to Step 3 within ten
(10) calendar days following the Employer-designated representative's final Step 2 answer. Any
grievance not appealed in writing to Step 3 by the Union within ten (l0) calendar days following the
Employer-designated representative's final Step 2 answer shall be considered waived.
the Union the Employer's answer in writing within ten (10) calendar days after receipt of such Step
3 grievance. A grievance not resolved in Step 3 may be appealed to Step 4 within ten (10)
calendar days following the Employer-designated representative's final answer in Step.3. Any
grievance not appealed in writing to Step 4 by the Union within ten (10) calendar days shall be
considered waived.
Step 4. A grievance unresolved in Step 3 and appealed to Step 4 by the Union shall be submitted
to arbitration, subject to the provisions of the Public Employment Labor Relations Act of 1971, as
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amended. The selection of an arbitrator shall be made in accordance with the "Rules Governing
the Arbitration of Grievances", as established by the Public Employment Relations Board.
6.5 Arbitrator's Authority
A. The arbitrator shall have no right to amend, modify, nullify, ignore, add to or subtract from, the
terms of this Agreement. The arbitrator shall consider and decide only the specific issue (s)
submitted in writing by the Employer and the Union and shall have no authority to make a decision
on any other issue not so submitted.
B. The arbitrator shall be without power to make decisions contrary to, or inconsistent with, or
modifying or varying in any way the application of laws, rules or regulations having the force and
effect of law. The Arbitrator's decision shall be submitted in writing within thirty (30) days following
close of the hearing or the submission of briefs by the parties, whichever be later, unless the
parties agree to an extension. The decision shall be binding on both the Employer and the Union
and shall be based solely on the arbitrator's interpretation or application of the express terms of
this Agreement and to the facts of the grievance presented.
C. The fees and expenses for the arbitrator's services and proceedings shall be borne equally by
the Employer and the Union, providing that each party shall be responsible for compensating its
own representatives and witnesses. If either party desires a verbatim record of the proceedings, it
may cause such a record to be made, providing it pays for the record. If both parties desire a
verbatim record of the proceedings, the cost shall be shared equally.
6.6 Waiver. If a grievance is not presented within the time limits set forth above, it shall be considered
"waived". If a grievance is not appealed to the next step within the specified time limit or any agreed
extension thereof, it shall be considered settled on the basis of the Employer's last answer. If the
Employer does not answer a grievance or an appeal thereof, within the specified time limits, the Union
may elect to treat the grievance as denied at that step and immediately appeal the grievance to the next
step. The time limit in each step may be extended by mutual written agreement of the Employer and the
Union, in each step.
ARTICLE 7. UNION SECURITY
In recognition of the Union as the exclusive representative, the Employer shall:
7.1 Deduct each payroll period an amount sufficient to provide the payment of dues established by the Union
from the Wages of all employees authorizing in writing such deduction or a "fair share" deduction, as
provided in Minnesota State Statute 179.65, Subd. 2, if the employee elects not to become a member of
the Union.
7.2 Remit such deduction to the appropriate designated officer of the Union.
7.3 The Union may designate certain employees from the bargaining unit to act as stewards and shall inform
the Employer in writing of such choice.
7.4 The Union agrees to indemnify and hold the Employer harmless against any and all claims, suits, orders,
judgments brought or issued against the Employer as a result of any action taken or not taken by the
Employer under the provisions of this Article.
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ARTICLE 8. SAVINGS CLAUSE
This Agreement is subject to the laws of the United States, the State of Minnesota and the City of Shakopee. In
the event any provision of this Agreement shall be held to be contrary to law by a court of competent jurisdiction
from whose final judgment or decree no appeal has been taken within the time provided, such provisions shall be
voided. All other provisions of this Agreement shall continue in full force and effect. The voided provision may be
re-negotiated at the written request of either party.
ARTICLE 9. WORK SCHEDULES
9.1 The sole authority in work schedules is the Employer. The normal workday for an employee shall be
eight (8) hours. The normal workweek shall be forty (40) hours, Monday through Friday.
9.2 Service to the public may require the establishment of regular shifts for some employees on a daily,
weekly, seasonal, or annual basis other than the normal schedule of 6:30 AM to 2:30 PM. The Employer
will give two weeks advance notice to the employees affected by the permanent establishment of
workdays different from the employee's normal eight (8) hour workday.
9.3 In the event that work is required because of unusual circumstances such as (but not limited to) fire,
flood, snow, sleet or breakdown of municipal equipment or facilities, no advance notice need be given the
employer is expected to communicate potential upcoming changes to normal work shifts with as much
advance notice as possible. It is not required that an employee working other than the normal work day
be scheduled to work more than eight (8) hours; however, each employee has an obligation to work
overtime or call backs if requested unless circumstances prevent him from so working.
9.4 Service to the public may require the establishment of regular workweeks that schedule work on
Saturdays and/or Sundays.
ARTICLE 10. OVERTIME
10.1 Overtime, as defined in 3.7, will be compensated at the rate of time and one-half (1 1/2) the employees
base rate of pay. Employees will have their choice of cash or compensatory time off.
10.2 Overtime shall be distributed as equally as practicable using a rotating overtime call list. No prior notice is
required for overtime because much of it is of a "call out" nature requiring immediate response.
Overtime will be offered to seasonal employees only if full-time employees are contacted and do not want
it.
10.3 For the purpose of computing overtime compensation, overtime hours worked shall not be pyramided,
compounded or paid twice for the same hours worked.
10.4 Employees may maintain a balance of no more than eighty 80 hours of comp time at any one time during
the payroll year. Employees may carryover up to 40 hours of accumulated comp time from one payroll
year to the next, as of July 31 of each year. Any hours of accumulated comp time in excess of 40 hours
as of the ending date of the last pay period of the payroll year will be converted into cash, and paid to the
employee or deposited in the employees Post Employment Health Care Savings Plan. The schedule in
Appendix D will be used to determine whether the money is paid to the employee or deposited in their
HCSP. The conversion will take place once a year on the pay date in August of each year. of the last
payroll of the plan year.
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10.5 In all possible scenarios (which could include planned, unplanned, emergency, etc.) hours in addition to
regularly scheduled shifts will be offered to full time bargaining unit members follow the aforementioned
process:
Inter-department: The additional hours will first be offered within the department normally functionally
responsible for the task needing completion based upon the lowest amount of worked overtime or refused
time, also referred to as the bottom of the list. (Parks, Streets and Shops)
Other departments: Should the employer still need volunteers, the additional hours will next be offered
outside the department normally functionally responsible for the task needing completion based upon the
lowest amount of working overtime or refused time, also referred to as the bottom of the list. (Parks,
Streets and Shops)
Refusal: Should an employee refuse to work the additional hours, they will be charged with two (2)
refused hours that will accumulate the same as and will be considered equal to two (2) hours of overtime
for future callout purposes.
Seniority Commencement: Effective January 1st of each year, the list of additional hours will zero out and
start over based upon the seniority for the first request to work additional hours.
ARTICLE 11. CALL BACK TIME
An employee who is called in for work at a time other than his normal scheduled shift will be compensated for a
minimum of two (2) hours at the rate of time and one-half and will be paid in cash or in compensatory time-off, as
determined by the City Administrator Employee.
ARTICLE 12. EARLY CALL-IN PAY
Employees shall receive an additional $4.25 $3.00 per hour for all hours worked between midnight and 6:30
a.m. that have not been scheduled at least 48 hours in advance.
ARTICLE 13. LEGAL DEFENSE
12.1 Employees involved in litigation because of negligence, ignorance of laws, non-observance of laws, or as
a result of employee judgmental decision may not receive legal defense by the municipality.
12.2 Any employee who is charged with a traffic violation, ordinance violation or criminal offense arising from
acts performed within the scope of his employment, when such act is performed in good faith and under
direct order of his supervisors, shall be reimbursed for reasonable attorney's fees and court costs actually
incurred by such employee in defending against such charge.
ARTICLE 14. SUBCONTRACTING WORK
Nothing in this Agreement shall prohibit or restrict the right of the Employer from subcontracting work performed
by employees covered by this Agreement.
ARTICLE 15. DISCIPLINE
15.1 The Employer will discipline employees for just cause only. As an example, discipline can will be in one or
more of the following forms:
a) oral reprimand or warning;

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b) written reprimand;
c) transfer;
d) suspension;
e) demotion; or
f) discharge.
15.2 Written reprimands, transfers, suspensions, demotions and discharges will be in written form.
15.3 Written reprimands, notices of suspension and notices of discharge which are to become part of an
employees personnel file shall be read and acknowledged by the signature of the employee. Employees
and the Union will receive a copy of such reprimands and notices. Should discipline or coaching documents
be placed in an employees personnel file, the Employee and the Union will be notified. After two (2) years
the document will sunset for progressive discipline purposes and will not be Public Data after the sunset.
15.4 Employees may examine their own individual personnel files at reasonable times under the direct
supervision of the Employer.
15.5 Discharges will be preceded by a five (5) day suspension, without pay.
15.6 Employees will not be questioned concerning an investigation of disciplinary action unless the employee has
been given an opportunity to have a Union representative present at such questioning.
15.7 Grievances relating to this Article shall be initiated by the Union in Step 3 of the Grievance Procedure, under
Article VI.
ARTICLE 16. SENIORITY
The City will work with an employee who has been promoted to a position within the City but outside of the
bargaining unit, who later expresses a desire to return to the previous job within the bargaining unit, if a
vacancy exists within that workplace. However, the right to return to the unit with benefits or seniority based on
total time with the City shall expire after one (1) year.
Seniority will be the determining criterion for transfers, promotions, lay-offs, and recalls, only when all other
qualification factors are equal. Seniority shall be established based on each employees length of continuous
service in a position represented by the bargaining unit. Recall rights under this provision shall continue for 24
months after the lay-off occurs. Recalled employees shall have 10 working days after notification of recall by
registered mail at the employees last known address to report for work or forfeit all recall rights.
ARTICLE 17. PROBATIONARY PERIODS
17.1 All newly hired or rehired employees will serve a twelve (12) month probationary period.
17.2 All employees will serve a twelve (12) month probationary period in any classification in which the
employee has not served a probationary period.
17.3 At any time during the probationary period a newly hired or rehired employee may be terminated at the
sole discretion of the Employer.
17.4 At any time during the probationary period a promoted or reassigned employee may be demoted or
reassigned to the employee's previous position at the sole discretion of the Employer. If any employee
choses to return to his or her previous position, that employee shall have the right to return, for any
reason, within the first twelve months of working in the new position.
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ARTICLE 18. SAFETY
The Employer and the Union agree to jointly promote safe and healthful working conditions, to cooperate in
safety matters and to encourage employees to work in a safe manner. Safety meetings will be held quarterly.
ARTICLE 19. JOB POSTING
19.1 The Employer and the Union agree that permanent job vacancies within the designated bargaining unit
shall be filled based on the concept of promotion from within provided the applicants:
a. Have the necessary qualifications to meet the standards of the job vacancy; and
b. Have the ability to perform the duties and responsibilities of the job vacancy.
19.2 Employees filling a higher job class based on the provisions of this Article shall be subject to the
conditions of Article XVI. Probationary Periods.
19.3 The Employer has the right to final decision in the selection of employees to fill posted jobs based on
qualifications, abilities, and experience.
19.4 Job vacancies within the designated bargaining unit will be posted for five (5) working days so that
members of the bargaining unit can be considered for such vacancies.
ARTICLE 20. INSURANCE
Public Works employees shall receive contributions towards health insurance premiums equal to that of non-
contract employees. In addition, the City shall provide life, long-term disability and dental insurance equal to
that for non-contract employees.
ARTICLE 21. HOLIDAYS
The Employer will provide the following eleven (11) paid holidays:
New Years Day (Jan. 1) Veterans Day (Nov. 11)

Martin Luther King Day (3rd Mon. in Jan.) Thanksgiving Day (4th Thur. in Nov.)
Presidents Day (3rd Mon. in Feb.) Friday after Thanksgiving
Memorial Day (Last Monday in May) Christmas Eve (Dec. 24)
Independence Day (July 4) Christmas Day (Dec. 25)
Labor Day (First Monday in Sept.)
In addition to the above eleven paid holidays, each employee may take one floating holiday to be taken at the
request of the employee and approved by the Employer. Said floating holiday is to be taken as a holiday during
the current year and cannot be carried over to the next year.
In calendar years during which December 24 and/or December 25 fall on a weekend, the Christmas Eve holiday
shall be converted to a second floating holiday to be taken on a day of the employees choice as approved by
their supervisor.
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An employee required to work on a holiday shall be paid or receive compensatory time at the rate of one and
one-half (1 1/2) times the employees base pay, plus the employees regular rate of pay for the holiday.
ARTICLE 22. VACATIONS
Vacation leave shall be earned by the employee at the following rate:
0 - 5 years of employment 10 days

16-20 years of employment 20 days
21 & over years of employment 1 additional day per year up to 25 days at 25 years
Employees who have 0-15 years employment may accumulate no more than 240 hours of vacation leave.
Employees who have 16 or more years of employment may accumulate no more than 360 years of vacation
leave. An employee who is separated for any reason shall be paid for any accumulated vacation leave, provided
however, that should an employee resign without giving two (2) weeks written notice, and except for reasons of ill
health, he or she shall forfeit his right to all accumulated vacation leave.
Between the observed holidays of Thanksgiving to Easter, the employer may limit absences from the work site.
Four (4) bargaining unit members may be absent on any given day, unless management authorizes additional
absences due to unusual circumstances or optional weather forecasts.
ARTICLE 23. SICK LEAVE
An employee shall accumulate sick leave at the rate of eight (8) hours per month to a maximum of nine hundred
and sixty (960) hours.
The City shall keep track and notify employees who have not accrued the full amount of sick leave for the year (8
hours per month x 12 months = 96 hours) as a result of being at the 960 hour limit. Employees shall receive this
notification by November 15 of each year. Those employees shall have the option to receive one (1) hour of pay,
one (1) hour of vacation, one (1) hour paid into their HSA, one (1) hour into their deferred compensation
account, or one (1) hour into the employees Health Care Savings Plan (HCSP) for every three (3) hours of sick
leave that they would have accrued had they not been at the limit. Such conversion shall be limited to 60 hours of
sick leave and must be requested, in writing, by December 1. The conversion shall be reflected in the final payroll
of the year. Hours not requested to be converted shall be forfeited.
Other provisions applicable to non-contract employees, as established by the City Administrator shall also be
applicable.
ARTICLE 24. FUNERAL LEAVE
Funeral leave for immediate family not to exceed three (3) days will be allowed by the City. Such funeral leave
shall not be chargeable to sick leave, but instead shall be a separate bereavement leave. If more than three
(3) days are required, the Employee may choose to deduct the extra three (3) from either vacation leave,
comp time, or accumulated sick leave.
Funeral leave may be granted for the death of the spouse, death of any relative residing permanently with and
dependent upon the employee, or death of any child, parent, sibling, grandparent, or grandchild of the
employee or of the employees spouse.
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ARTICLE 25. SEVERANCE PAY
An employee who was a full time employee of the City before January 1, 1980 or who has completed five (5) full
years of full time employment with the City of Shakopee and who is separated from his/her position by retirement,
discharge, or resignation shall receive a lump sum payment, an amount to equal forty-five percent the value of all
accumulated sick leave calculated on the basis of his/her current salary or wage scale, provided that should any
employee resign without giving two weeks written notice, except for reasons of ill health, he/she shall forfeit
his/her right to all accumulated sick leave.
ARTICLE 26. POST-EMPLOYMENT HEALTH CARE SAVINGS PLAN
Employees covered under this contract shall be enrolled in the Minnesota State Retirement System (MSRS) Health
Care Savings Plan (HCSP). The City shall contribute $325 per month to each employees HCSP, and automatically
deposit a percentage of each employees regular pay, severance pay and comp time buy back, as outlined in
Appendix D.
ARTICLE 27. INJURY ON DUTY
Employees injured while on duty, through no fault of the employee, shall be paid the difference between the
employee's regular rate of pay and workers compensation benefits for a period not to exceed twenty-five (25)
working days, in accordance with guidelines set forth in M.S. 176.021, Subd. 5.
ARTICLE 28. COVERALLS/UNIFORMS/FOOTWEAR
28.1 The City of Shakopee shall provide one (1) set of coveralls, one (1) winter coat, one (1) set of rain gear,
high-visibility shirts, and other safety items as needed for each Street and Park employee as determined by the
City Administrator. as needed for each maintenance operator and mechanic, upon approval of the Public Works
Superintendent.
28.2 For the duration of this agreement the City of Shakopee will pay 100% of the cost of weekly uniform
rental with laundering for five (5) uniforms in, five (5) out, one (1) on the shelf and two (2) jackets for the City
Mechanic(s). The City of Shakopee will also pay l00% of the cost of weekly uniform rental for maintenance
workers to include five (5) uniforms in, five (5) uniforms out, one (l) on the shelf and two (2) jackets. for
maintenance operators and mechanics for up to ten (10) items in, ten (10) items out, and two (2) on the shelf
(being worn). Employees may choose a combination of pants, jeans, shorts, short sleeved shirts and long-
sleeved shirts that will best meet their individual work needs. Employees are responsible to report any requests,
changes, or errors to the Public Works Superintendent immediately.
28.3 The City of Shakopee shall provide up to $17550 per year toward the purchase of work shoes, or boots,
or footwear accessories. An itemized receipt must be submitted in order to receive the reimbursement. Footwear
purchased with these funds must meet OSHA requirements for the individuals regular job duties. If the desired
shoe/boot/accessory costs more than the Citys allowance, the employee shall be responsible for the difference.
New employees starting prior to July 1 shall be provided with the allowance upon the start of work. Employees
starting after July 1 of a given year shall not be eligible for a boot allowance until the first quarter of the following
year.
ARTICLE 29. REPLACEMENT
The Employer shall provide reimbursement/replacement of personal property such as glasses when accidentally
damaged while on duty. The Employee must submit a written claim within a reasonably prompt time after the
incident. Such claim must be verified by the Supervisor.
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ARTICLE 30. REQUIRED LICENSES
The City will pay the difference between a standard drivers license, and CDL drivers license, with required
endorsements at the time of renewal.
ARTICLE 31. WAGES
The wage rates to be paid in 2014, 2015 and 2016 shall be as shown in Appendix A. Each year of the contract,
the wage scale will increase across the board three percent (3%). Employees will also receive a step increase on
their anniversary date, provided the employee is not at the top step and there is movement on the scale.
31.2 Temporary Lead Assignment: Employees assigned by the Employer as a Temporary Lead shall be paid
$1.50 per hour in addition to their base rate of pay for the hours worked in this position. Assignments shall be for
a minimum period of 2 hours. The position shall be assigned at the sole discretion of the Employer.
31.3 Me Too: In the case that non-union employees of the City receive an annual Cost of Living Adjustment
during the course of this agreement that is in excess of the three percent (3%) increases provided for in this
agreement, Appendix A shall be adjusted to provide an equal increase to employees covered under this
agreement.
31.4 Re-opener: In the case that the City completes a general wage study, market study, organizational study,
compensation study, classification study, or any other similar type of research during the time period covered by
this contract, and that the study supports a wage change for employees covered in this contract, both the City
and the Union shall agree to re-open this article and the corresponding Appendix for negotiation.
ARTICLE 32. LICENSURE / CERTIFICATION PAY
The City of Shakopee and the Union recognize that education and training improve the quality of the workforce
and the level of service provided to the public. Therefore, the City shall provide premium pay to those employees
receiving specified licenses or certificates, as outlined in Appendix B.
Premium pay is added to base pay after all other considerations are made. Any employee eligible for premium
pay as a result of obtaining one of the specified licenses or certifications shall not be entitled to pyramid said
payments in excess of $2.00 per hour.
ARTICLE 33. RESPONSE TIME REQUIREMENT
All employees hired after December 31, 2013 will be required to reside within thirty (30) minutes (weather and
traffic permitting) of the Public Works building by the end of their probationary period. If the employer and
employee agree to modify the above time line it must be in writing with a copy distributed to the City
Administrator and the Union.
ARTICLE 34. WAIVER
32.1 Any and all prior agreements, resolutions, practices, rules and regulations regarding terms and conditions
of employment, to the extent inconsistent with the provisions of this Agreement, are hereby superseded.
32.2 The parties mutually acknowledge that during the negotiations, which resulted in this Agreement, each
had the unlimited right and opportunity to make demands and proposals with respect to any term or
condition of employment not removed by law from bargaining. All agreements and understandings arrived
at by the parties are set forth in writing in this Agreement for the stipulated duration of this Agreement.
The Employer and the Union each voluntarily and unqualifiedly waives the right to meet and negotiate,
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regarding any and all terms and conditions of employment referred to or covered in this Agreement or
with respect to any term or condition of employment not specifically referred to or covered by this
Agreement, even though such terms or conditions may not have been within the knowledge or
contemplation of either or both of the parties at the time this Agreement was negotiated or executed.
ARTICLE 35. MEET AND CONFER
The City and Union agree to meet and confer regarding items of concern (non-negotiable items) that are
brought forth by the Union and the City.
ARTICLE 36. DURATION
This Agreement shall be effective as of January 1, 2017 and shall remain in full force and effect until December
31, 2019.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on this day of
_____________________ , 2017 .
FOR THE CITY OF SHAKOPEE FOR MINNESOTA TEAMSTERS PUBLIC AND LAW ENFORCEMENT
EMPLOYEES UNION, LOCAL NO. 320
Mayor Local 320 Representative
City Administrator Union Steward
City Clerk Union Steward
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APPENDIX A
80% 85% 90% 95% 100%

Step 1 Step 2 Step 3 Step 4 Step 5
3% increase -- 12-26-2016 $22.99 $24.43 $25.86 $27.30 $28.74
3% increase --12-25-2017 $23.68 $25.16 $26.64 $28.12 $29.60
3% increase-- 12-24-2018 $24.39 $25.91 $27.44 $28.96 $30.49
Lead Maintenance Operator Single Step

3% increase -- 12-26-2016 $31.47
3% increase --12-25-2017 $32.41
3% increase -- 12-24-2018 $33.38
80% 85% 90% 95% 100%

Mechanic
3% increase -- 12-26-2016 $24.50 $26.04 $27.56 $29.10 $30.63
3% increase -- 12-25-2017 $25.24 $26.82 $28.39 $29.97 $31.55
3% increase -- 12-24-2018 $26.00 $27.62 $29.24 $30.87 $32.50
Lead Mechanic Single Step

3% increase -- 12-26-2016 $33.36
3% increase -- 12-25-2017 $34.36
3% increase -- 12-24-2018 $35.39
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APPENDIX B
Licensure & Certification Pay
The Employer shall provide the following premium pay to those employees receiving additional
licensure or certification related to their position:
I. Maintenance Operators
A. Public Works Certificate

--American Public Works Association (APWA), Minnesota Chapter Public Works
Certificate $0.75 / hour premium
B. Waste Water Licensure

--Class SC Waste Water $0.25 / hour premium
--Class SB Waste Water $0.50 / hour premium
C. Fertilizer/Chemical Applicator License $0.50 / hour premium

D. Playground Inspector Certification $0.50 / hour premium
II. Mechanic
A. Mechanics Test Series $0.80 / hour premium

--Successfully pass 8 tests in the (combined) Medium/Heavy Truck and Automotive Test
Series, thereby attaining Master Mechanic status. City shall have final approval on qualifying
licenses.
B. DOT Inspector Certification $0.50 / hour premium
Employees shall consult their supervisor prior to obtaining any of the above listed licenses or
certifications, to determine whether the City has a need for additional employees with a particular
license or certification. The City has sole authority to determine how many employees with a given
license or certificate are needed for the successful operation of the Department, and shall provide
premium pay only to that number of employees. However, there shall be no limit on the number of
Maintenance Operators that may obtain a Public Works Certificate and the resulting premium pay.
If there are more employees interested in obtaining a license or certificate than the City has a need
for, the individual(s) with the most seniority will be given the opportunity over other equally qualified
candidates. However, once an employee has successfully obtained a given license or certificate and
is regularly assigned to perform the related work, they cannot be bumped from that position and the
corresponding premium pay by a more senior employee wishing to obtain the license or certificate
and subsequent premium pay.
In addition to successfully obtaining the license or certificate, the employee must be regularly
assigned to work in an applicable position. Regularly assigned is defined as at least 6 months per
year for item B and at least 3 months per year for C.
** See Article XXXI for additional relevant terms.

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APPENDIX C
POST EMPLOYMENT HEALTH CARE SAVINGS PLAN (HCSP)

CONTRIBUTION SCHEDULE FOR Teamsters, Local 320 MEMBERS
Years of Service
with the City of Hire Beginning 2 Beginning 7 Beginning 16 Beginning
Shakopee 1 yr. through 6 ys. through 15 yr. thru 24 yr. 25th yr. +
% of payroll 0% 2 0.5% 3 2% 4 2.5% 5 3%

contribution
City Contribution $35 per $35 per $35 per $35 per $35 per
month month month month month
End of Year Buy 100% of 100% of 100% of 100% of
Back of Comp 0% hours in hours in hours in hours in
Time excess of 40 excess of 40 excess of 40 excess of 40
% of Severance NA NA 100% 100% 100%

Pay*
Accrued Vacation
at the Time of 0% 0% 50% 50% 100%
Departure
Accelerated Sick NA NA NA 100% 100%

Leave Payout
Sick time accrued
above the max cap NA NA 100% 100% 100%
(cash, HSA or
HCSP
* Severance Pay as defined in the City of Shakopee Personnel Handbook
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Accelerated Sick Leave Severance Payout
The City of Shakopee appreciates employees, who through long-term service and dedication,
contribute to making the city a successful and positive service provider. In recognition thereof, the
City acknowledges such long-term service by providing an accelerated sick leave payout formula
listed below if the employee meets all the following conditions:
Full-time or part-time benefit-eligible employee with the City of Shakopee for 15 continuous
years or more.
Employee must reach the age (usually age 55, as governed by Minnesota Statutes, 2004,
353.29 and related chapters) and service requirements to be qualified for retirement under
PERA.
Employee is separating employment in good standing.
The percentage of the severance pay-out shall be based on a maximum of 960 hours of
accumulated sick leave calculated on the basis of the employees current annual base pay.
The accelerated severance payment will be deposited in the employees HCSP account not
later than the first regularly scheduled payday following the employees final day of
employment.
Completion of Continuous Service

With the City of Shakopee Step-up Payout formula
15 years 55%
16 years 57%
17 years 59%
18 years 61%
19 years 63%
20 years 65%
21 years 67%
22 years 69%
23 years 71%
24 years 73%
25 years 75%
Anniversary date of full-time employment or part-time benefit-eligible date is used to compute years
of service with Shakopee.
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LABOR AGREEMENT
BETWEEN
THE CITY OF SHAKOPEE
AND
MINNESOTA TEAMSTERS
PUBLIC AND LAW ENFORCEMENT EMPLOYEES UNION
LOCAL NO. 320
Public Works
Effective January 1, 2017 December 31, 2019
Page 35 of 242
INDEX
ARTICLE SUBJECT PAGE

Article 1 PURPOSE OF AGREEMENT 3
Article 2 RECOGNITION 3
Article 3 DEFINITIONS 3
Article 4 EMPLOYER SECURITY 4
Article 5 EMPLOYER AUTHORITY 4
Article 6 EMPLOYEE RIGHTS - GRIEVANCE 5
Article 7 UNION SECURITY 6
Article 8 SAVINGS CLAUSE 6
Article 9 WORK SCHEDULE 7
Article 10 OVERTIME 7
Article 11 CALL BACK 8
Article 12 EARLY CALL-IN PAY 8
Article 13 LEGAL DEFENSE 8
Article 14 SUBCONTRACTING WORK 8
Article 15 DISCIPLINE 8
Article 16 SENIORITY 9
Article 17 PROBATIONARY PERIODS 9
Article 18 SAFETY 9
Article 19 JOB POSTING 10
Article 20 INSURANCE 10
Article 21 HOLIDAYS 10
Article 22 VACATIONS 11
Article 23 SICK LEAVE 11
Article 24 FUNERAL LEAVE 11
Article 25 SEVERANCE PAY 11
Article 26 POST EMPLOYMENT HEALTH CARE SAVINGS PLAN 12
Article 27 INJURY ON DUTY 12
Article 28 COVERALLS/UNIFORMS/FOOTWEAR 12
Article 29 REPLACEMENT 12
Article 30 REQUIRED LICENSES 12
Article 31 WAGES 13
Article 32 LICENSE/CERTIFICATION PAY 13
Article 33 RESPONSE TIME REQUIREMENT 13
Article 34 WAIVER 14
Article 35 MEET AND CONFER 14
Article 36 DURATION 14
APPENDIX A SALARY SCHEDULE 15
APPENDIX B LICENSURE & CERTIFICATION PAY 16
APPENDIX C POST EMPLOYMENT HEALTH CARE SAVINGS PLAN 17
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ARTICLE 1. PURPOSE OF AGREEMENT
This Agreement is entered into between the City of Shakopee, hereinafter called the Employer, and the
Minnesota Teamsters Public and Law Enforcement Employees Union, Local No. 320, hereinafter called the
Union, the intent and purpose of this Agreement is to:
1.1 Establish certain hours, wages and other conditions of employment;
1.2 Establish procedures for the resolution of disputes concerning this Agreement's interpretation and/or
application;
1.3 Specify the full and complete understanding of the parties, and;
1.4 Place in written form, the partys agreement, upon terms and conditions of employment for the duration of
this Agreement.
The Employer and the Union, through this Agreement, continue their dedication to the highest quality of public
service. Both parties recognize this Agreement as a pledge of this dedication.
ARTICLE 2. RECOGNITION
2.1 The Employer recognizes the Union as the exclusive representative, under Minnesota Statutes, Section
179A.03, Subd. 14 in an appropriate bargaining unit consisting of the following job classifications:
Mechanic
Mechanic Apprentice
ARTICLE 3. DEFINITIONS
3.1 UNION: The Minnesota Teamsters Public and Law Enforcement Employees Union, Local No. 320.
3.2 EMPLOYER: The City of Shakopee
3.3 UNION MEMBER: A member of the Minnesota Teamsters Public and Law Enforcement Employees
Union, Local No. 320.
3.4 EMPLOYEE: A member of the exclusively recognized bargaining unit.
3.5 BASE PAY RATE: The employee's hourly pay rate exclusive of longevity or any other special allowance.
3.6 SEVERANCE PAY: Payment made to an employee upon honorable termination of employment.
3.7 OVERTIME: Any employee working more than 40 hours in a seven-day period is to be paid at the
overtime rate for the time worked which exceeds 40 hours. Time compensated shall include hours
actually worked and hours compensated for, including vacation, sick and comp time taken. Payment is
not to be made for time that is taken without pay.
3.8 CALL BACK: Return of an employee to a specified work site to perform assigned duties at the express
authorization of the Employer at a time other than an assigned shift. An extension of or early report to an
assigned shift is not a call back.
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3.9 STRIKE: Concerted action in failing to report for duty, the willful absence from one's position, the
stoppage of work, slow-down, or abstinence in whole or in part from the full, faithful and proper
performance of the duties of employment for the purposes of inducing, influencing or coercing a change
in the conditions or compensations or the rights, privileges or obligations of employment.
3.10 SEASONAL EMPLOYEES: Employees hired on a temporary, part-time or seasonal basis for the
department, may work continuously in this capacity from April to October of each year. Upon completion
of work for the department, these employees shall not be eligible for other temporary, and or seasonal
employment within the City until April of the next year. Employees employed by the City on a temporary,
part-time or seasonal basis will be paid at the rate determined by the Employer for the term of their
employment, provided it does not exceed the way of any current bargaining unit member. Such
employees shall not be eligible for any benefits under this labor agreement between the employer and the
union, except those which may be required by law. Seasonal employees will count toward any payment of
lead workers if said payment includes directing seasonal employees.
ARTICLE 4. EMPLOYER SECURITY
4.1 The Union agrees that during the life of this Agreement, it will not cause, encourage, participate in or
support any strike, slow-down or other interruption of or interference with, the normal functions of the
Employer.
4.2 Any employee who engages in a strike may have his/her appointment terminated by the Employer
effective the date the violation first occurs. Such termination shall be effective upon written notice served
upon the employee.
4.3 An employee who is absent from any portion of his/her work assignment without permission, or who
abstains wholly or in part from the full performance of his/her duties without permission from his/her
Employer on the date or dates when a strike occurs is prima facia presumed to have engaged in a strike
on such date or dates.
4.4 An employee who knowingly strikes and whose employment has been terminated for such action may,
subsequent to such violation, be appointed or reappointed or employed or re-employed, but the employee
shall be on probation for two years with respect to such civil service status, tenure of employment, or
contract of employment, as he/she may have therefore been entitled.
4.5 No employee shall be entitled to any daily pay, wages or per diem for the days on which he/she engaged
in a strike.
ARTICLE 5. EMPLOYER AUTHORITY
5.1 The Employer retains the full and unrestricted right to operate and manage all manpower, facilities and
equipment; to establish functions and programs; to set and amend budgets; to determine the utilization of
technology; to establish and modify the organizational structure; to select, direct and determine the
number of personnel; to establish work schedules and perform any inherent managerial function not
specifically limited by this Agreement.
5.2 Any term and condition of employment not specifically established or modified by this Agreement shall
remain solely within the discretion of the Employer to modify, establish or eliminate.
5.3 The Employer will meet and confer with the Union over policy changes. In addition, the City will form a
Labor/Management Committee to facilitate open communication and cooperation between the city and
our unions.
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ARTICLE 6. EMPLOYEE RIGHTS - GRIEVANCE PROCEDURE
6.1 Definition of a Grievance. A grievance is defined as a dispute or disagreement as to the interpretation or

application of the specific terms and conditions of this Agreement.
6.2 Union Representatives. The employer will recognize Representatives designated by the Union as the
grievance representatives of the bargaining unit having the duties and responsibilities established by this
Article. The Union shall notify the Employer, in writing, of the names of such Union Representatives and
of their successors when so designated, as provided by Section 6.2 of this Agreement.
6.3 Processing of a Grievance. It is recognized and accepted by the Union and the Employer that the
processing of grievances as hereinafter provided, is limited by the job duties and responsibilities of the
employees and shall therefore be accomplished during normal working hours only when consistent with
such employee duties and responsibilities. The aggrieved employee and a Union Representative shall be
allowed a reasonable amount of time without loss in pay when a grievance is investigated and presented
to the Employer during normal working hours provided that the employee and the Union Representative
have notified and received the approval of the designated supervisor, who has determined that such
absence is reasonable and would not be detrimental to the work programs of the Employer.
6.4 Procedure. Grievances, as defined by Section 6.1, shall be resolved in conformance with the following
procedure.
Step 1. An employee claiming a violation concerning the interpretation or application of this

Agreement shall, within twenty-one (21) calendar days after such alleged violation has occurred,
present such grievance to the employee's supervisor as designated by the Employer. The
Employer-designated representative will discuss and give an answer to such Step 1 grievance
within ten (10) calendar days after receipt. A grievance not resolved in Step 1 and appealed to
Step 2 shall be placed in writing, setting forth the nature of the grievance, the facts on which it is
based, the provision or provisions of the Agreement allegedly violated, the remedy requested and
shall be appealed to Step 2 within ten (10) calendar days after the Employer-designated
representative's final answer in Step 1. Any grievance not appealed in writing to Step 2 by the
Union, within ten (10) calendar days shall be considered waived.
the Union the Employer's Step 2 answer in writing within ten (10) calendar days after receipt of
such Step 2 grievance. A grievance not resolved in Step 2 may be appealed to Step 3 within ten
(10) calendar days following the Employer-designated representative's final Step 2 answer. Any
grievance not appealed in writing to Step 3 by the Union within ten (l0) calendar days following the
Employer-designated representative's final Step 2 answer shall be considered waived.
the Union the Employer's answer in writing within ten (10) calendar days after receipt of such Step
3 grievance. A grievance not resolved in Step 3 may be appealed to Step 4 within ten (10)
calendar days following the Employer-designated representative's final answer in Step.3. Any
grievance not appealed in writing to Step 4 by the Union within ten (10) calendar days shall be
considered waived.
Step 4. A grievance unresolved in Step 3 and appealed to Step 4 by the Union shall be submitted
to arbitration, subject to the provisions of the Public Employment Labor Relations Act of 1971, as
amended. The selection of an arbitrator shall be made in accordance with the "Rules Governing
the Arbitration of Grievances", as established by the Public Employment Relations Board.
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6.5 Arbitrator's Authority
A. The arbitrator shall have no right to amend, modify, nullify, ignore, add to or subtract from, the
terms of this Agreement. The arbitrator shall consider and decide only the specific issue (s)
submitted in writing by the Employer and the Union and shall have no authority to make a decision
on any other issue not so submitted.
B. The arbitrator shall be without power to make decisions contrary to, or inconsistent with, or
modifying or varying in any way the application of laws, rules or regulations having the force and
effect of law. The Arbitrator's decision shall be submitted in writing within thirty (30) days following
close of the hearing or the submission of briefs by the parties, whichever be later, unless the
parties agree to an extension. The decision shall be binding on both the Employer and the Union
and shall be based solely on the arbitrator's interpretation or application of the express terms of
this Agreement and to the facts of the grievance presented.
C. The fees and expenses for the arbitrator's services and proceedings shall be borne equally by
the Employer and the Union, providing that each party shall be responsible for compensating its
own representatives and witnesses. If either party desires a verbatim record of the proceedings, it
may cause such a record to be made, providing it pays for the record. If both parties desire a
verbatim record of the proceedings, the cost shall be shared equally.
6.6 Waiver. If a grievance is not presented within the time limits set forth above, it shall be considered
"waived". If a grievance is not appealed to the next step within the specified time limit or any agreed
extension thereof, it shall be considered settled on the basis of the Employer's last answer. If the
Employer does not answer a grievance or an appeal thereof, within the specified time limits, the Union
may elect to treat the grievance as denied at that step and immediately appeal the grievance to the next
step. The time limit in each step may be extended by mutual written agreement of the Employer and the
Union, in each step.
ARTICLE 7. UNION SECURITY
In recognition of the Union as the exclusive representative, the Employer shall:
7.1 Deduct each payroll period an amount sufficient to provide the payment of dues established by the Union
from the Wages of all employees authorizing in writing such deduction or a "fair share" deduction, as
provided in Minnesota State Statute 179.65, Subd. 2, if the employee elects not to become a member of
the Union.
7.2 Remit such deduction to the appropriate designated officer of the Union.
7.3 The Union may designate certain employees from the bargaining unit to act as stewards and shall inform
the Employer in writing of such choice.
7.4 The Union agrees to indemnify and hold the Employer harmless against any and all claims, suits, orders,
judgments brought or issued against the Employer as a result of any action taken or not taken by the
Employer under the provisions of this Article.
ARTICLE 8. SAVINGS CLAUSE
This Agreement is subject to the laws of the United States, the State of Minnesota and the City of Shakopee. In
the event any provision of this Agreement shall be held to be contrary to law by a court of competent jurisdiction
from whose final judgment or decree no appeal has been taken within the time provided, such provisions shall be
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voided. All other provisions of this Agreement shall continue in full force and effect. The voided provision may be
re-negotiated at the written request of either party.
ARTICLE 9. WORK SCHEDULES
9.1 The sole authority in work schedules is the Employer. The normal workday for an employee shall be
eight (8) hours. The normal workweek shall be forty (40) hours, Monday through Friday.
9.2 Service to the public may require the establishment of regular shifts for some employees on a daily,
weekly, seasonal, or annual basis other than the normal schedule of 6:30 AM to 2:30 PM. The Employer
will give two weeks advance notice to the employees affected by the permanent establishment of
workdays different from the employee's normal eight (8) hour workday.
9.3 In the event that work is required because of unusual circumstances such as (but not limited to) fire,
flood, snow, sleet or breakdown of municipal equipment or facilities, the employer is expected to
communicate potential upcoming changes to normal work shifts with as much advance notice as
possible. It is not required that an employee working other than the normal work day be scheduled to
work more than eight (8) hours; however, each employee has an obligation to work overtime or call backs
if requested unless circumstances prevent him from so working.
9.4 Service to the public may require the establishment of regular workweeks that schedule work on
Saturdays and/or Sundays.
ARTICLE 10. OVERTIME
10.1 Overtime, as defined in 3.7, will be compensated at the rate of time and one-half (1 1/2) the employees
base rate of pay. Employees will have their choice of cash or compensatory time off.
10.2 Overtime shall be distributed as equally as practicable using a rotating overtime call list. No prior notice is
required for overtime because much of it is of a "call out" nature requiring immediate response.
Overtime will be offered to seasonal employees only if full-time employees are contacted and do not want
it.
10.3 For the purpose of computing overtime compensation, overtime hours worked shall not be pyramided,
compounded or paid twice for the same hours worked.
10.4 Employees may maintain a balance of no more than eighty 80 hours of comp time at any one time during
the payroll year. Employees may carryover up to 40 hours of accumulated comp time, as of July 31 of
each year. Any hours of accumulated comp time in excess of 40 hours will be converted into cash, and
paid to the employee or deposited in the employees Post Employment Health Care Savings Plan. The
schedule in Appendix D will be used to determine whether the money is paid to the employee or
deposited in their HCSP. The conversion will take place once a year on the pay date in August of each
year.
10.5 In all possible scenarios (which could include planned, unplanned, emergency, etc.) hours in addition to
regularly scheduled shifts will be offered to full time bargaining unit members follow the aforementioned
process:
Inter-department: The additional hours will first be offered within the department normally functionally
responsible for the task needing completion based upon the lowest amount of worked overtime or refused
time, also referred to as the bottom of the list. (Parks, Streets and Shops)
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Other departments: Should the employer still need volunteers, the additional hours will next be offered
outside the department normally functionally responsible for the task needing completion based upon the
lowest amount of working overtime or refused time, also referred to as the bottom of the list. (Parks,
Streets and Shops)
Refusal: Should an employee refuse to work the additional hours, they will be charged with two (2)
refused hours that will accumulate the same as and will be considered equal to two (2) hours of overtime
for future callout purposes.
Seniority Commencement: Effective January 1st of each year, the list of additional hours will zero out and
start over based upon the seniority for the first request to work additional hours.
ARTICLE 11. CALL BACK TIME
An employee who is called in for work at a time other than his normal scheduled shift will be compensated for a
minimum of two (2) hours at the rate of time and one-half and will be paid in cash or in compensatory time-off, as
determined by the Employee.
ARTICLE 12. EARLY CALL-IN PAY
Employees shall receive an additional $4.25 per hour for all hours worked between midnight and 6:30 a.m.
that have not been scheduled at least 48 hours in advance.
ARTICLE 13. LEGAL DEFENSE
13.1 Employees involved in litigation because of negligence, ignorance of laws, non-observance of laws, or as
a result of employee judgmental decision may not receive legal defense by the municipality.
13.2 Any employee who is charged with a traffic violation, ordinance violation or criminal offense arising from
acts performed within the scope of his employment, when such act is performed in good faith and under
direct order of his supervisors, shall be reimbursed for reasonable attorney's fees and court costs actually
incurred by such employee in defending against such charge.
ARTICLE 14. SUBCONTRACTING WORK
Nothing in this Agreement shall prohibit or restrict the right of the Employer from subcontracting work performed
by employees covered by this Agreement.
ARTICLE 15. DISCIPLINE
15.1 The Employer will discipline employees for just cause only. As an example, discipline can be in one or
more of the following forms:
a) oral reprimand or warning;

b) written reprimand;
c) transfer;
d) suspension;
e) demotion; or
f) discharge.
15.2 Written reprimands, transfers, suspensions, demotions and discharges will be in written form.
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15.3 Written reprimands, notices of suspension and notices of discharge which are to become part of an
employees personnel file shall be read and acknowledged by the signature of the employee. Employees
and the Union will receive a copy of such reprimands and notices. Should discipline or coaching documents
be placed in an employees personnel file, the Employee and the Union will be notified. After two (2) years
the document will sunset for progressive discipline purposes and will not be Public Data after the sunset.
15.4 Employees may examine their own individual personnel files at reasonable times under the direct
supervision of the Employer.
15.5 Discharges will be preceded by a five (5) day suspension, without pay.
15.6 Employees will not be questioned concerning an investigation of disciplinary action unless the employee has
been given an opportunity to have a Union representative present at such questioning.
15.7 Grievances relating to this Article shall be initiated by the Union in Step 3 of the Grievance Procedure, under
Article VI.
ARTICLE 16. SENIORITY
The City will work with an employee who has been promoted to a position within the City but outside of the
bargaining unit, who later expresses a desire to return to the previous job within the bargaining unit, if a
vacancy exists within that workplace. However, the right to return to the unit with benefits or seniority based on
total time with the City shall expire after one (1) year.
Seniority will be the determining criterion for transfers, promotions, lay-offs, and recalls, only when all other
qualification factors are equal. Seniority shall be established based on each employees length of continuous
service in a position represented by the bargaining unit. Recall rights under this provision shall continue for 24
months after the lay-off occurs. Recalled employees shall have 10 working days after notification of recall by
registered mail at the employees last known address to report for work or forfeit all recall rights.
ARTICLE 17. PROBATIONARY PERIODS
17.1 All newly hired or rehired employees will serve a twelve (12) month probationary period.
17.2 All employees will serve a twelve (12) month probationary period in any classification in which the
employee has not served a probationary period.
17.3 At any time during the probationary period a newly hired or rehired employee may be terminated at the
sole discretion of the Employer.
17.4 At any time during the probationary period a promoted or reassigned employee may be demoted or
reassigned to the employee's previous position at the sole discretion of the Employer. If any employee
choses to return to his or her previous position, that employee shall have the right to return, for any
reason, within the first twelve months of working in the new position.
ARTICLE 18. SAFETY
The Employer and the Union agree to jointly promote safe and healthful working conditions, to cooperate in
safety matters and to encourage employees to work in a safe manner. Safety meetings will be held quarterly.
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ARTICLE 19. JOB POSTING
19.1 The Employer and the Union agree that permanent job vacancies within the designated bargaining unit
shall be filled based on the concept of promotion from within provided the applicants:
a. Have the necessary qualifications to meet the standards of the job vacancy; and
b. Have the ability to perform the duties and responsibilities of the job vacancy.
19.2 Employees filling a higher job class based on the provisions of this Article shall be subject to the
conditions of Article XVI. Probationary Periods.
19.3 The Employer has the right to final decision in the selection of employees to fill posted jobs based on
qualifications, abilities, and experience.
19.4 Job vacancies within the designated bargaining unit will be posted for five (5) working days so that
members of the bargaining unit can be considered for such vacancies.
ARTICLE 20. INSURANCE
Public Works employees shall receive contributions towards health insurance premiums equal to that of non-
contract employees. In addition, the City shall provide life, long-term disability and dental insurance equal to
that for non-contract employees.
ARTICLE 21. HOLIDAYS
The Employer will provide the following eleven (11) paid holidays:
New Years Day (Jan. 1) Veterans Day (Nov. 11)

Martin Luther King Day (3rd Mon. in Jan.) Thanksgiving Day (4th Thur. in Nov.)
Presidents Day (3rd Mon. in Feb.) Friday after Thanksgiving
Memorial Day (Last Monday in May) Christmas Eve (Dec. 24)
Independence Day (July 4) Christmas Day (Dec. 25)
Labor Day (First Monday in Sept.)
In addition to the above eleven paid holidays, each employee may take one floating holiday to be taken at the
request of the employee and approved by the Employer. Said floating holiday is to be taken as a holiday during
the current year and cannot be carried over to the next year.
In calendar years during which December 24 and/or December 25 fall on a weekend, the Christmas Eve holiday
shall be converted to a second floating holiday to be taken on a day of the employees choice as approved by
their supervisor.
An employee required to work on a holiday shall be paid or receive compensatory time at the rate of one and
one-half (1 1/2) times the employees base pay, plus the employees regular rate of pay for the holiday.
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ARTICLE 22. VACATIONS
Vacation leave shall be earned by the employee at the following rate:

16-20 years of employment 20 days
21 & over years of employment 1 additional day per year up to 25 days at 25 years
Employees who have 0-15 years employment may accumulate no more than 240 hours of vacation leave.
Employees who have 16 or more years of employment may accumulate no more than 360 years of vacation
leave. An employee who is separated for any reason shall be paid for any accumulated vacation leave, provided
however, that should an employee resign without giving two (2) weeks written notice, and except for reasons of ill
health, he or she shall forfeit his right to all accumulated vacation leave.
Between the observed holidays of Thanksgiving to Easter, the employer may limit absences from the work site.
Four (4) bargaining unit members may be absent on any given day, unless management authorizes additional
absences due to unusual circumstances or optional weather forecasts.
ARTICLE 23. SICK LEAVE
An employee shall accumulate sick leave at the rate of eight (8) hours per month to a maximum of nine hundred
and sixty (960) hours.
The City shall keep track and notify employees who have not accrued the full amount of sick leave for the year (8
hours per month x 12 months = 96 hours) as a result of being at the 960 hour limit. Employees shall receive this
notification by November 15 of each year. Those employees shall have the option to receive one (1) hour of pay,
one (1) hour of vacation, one (1) hour paid into their HSA, one (1) hour into their deferred compensation
account, or one (1) hour into the employees Health Care Savings Plan (HCSP) for every three (3) hours of sick
leave that they would have accrued had they not been at the limit. Such conversion shall be limited to 60 hours of
sick leave and must be requested, in writing, by December 1. The conversion shall be reflected in the final payroll
of the year. Hours not requested to be converted shall be forfeited.
Other provisions applicable to non-contract employees, as established by the City Administrator shall also be
applicable.
ARTICLE 24. FUNERAL LEAVE
Funeral leave for immediate family not to exceed three (3) days will be allowed by the City. Such funeral leave
shall not be chargeable to sick leave, but instead shall be a separate bereavement leave. If more than three
(3) days are required, the Employee may choose to deduct the extra three (3) from either vacation leave,
comp time, or accumulated sick leave.
Funeral leave may be granted for the death of the spouse, death of any relative residing permanently with and
dependent upon the employee, or death of any child, parent, sibling, grandparent, or grandchild of the
employee or of the employees spouse.
ARTICLE 25. SEVERANCE PAY
An employee who was a full time employee of the City before January 1, 1980 or who has completed five (5) full
years of full time employment with the City of Shakopee and who is separated from his/her position by retirement,
discharge, or resignation shall receive a lump sum payment, an amount to equal forty-five percent the value of all
accumulated sick leave calculated on the basis of his/her current salary or wage scale, provided that should any
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employee resign without giving two weeks written notice, except for reasons of ill health, he/she shall forfeit
his/her right to all accumulated sick leave.
ARTICLE 26. POST-EMPLOYMENT HEALTH CARE SAVINGS PLAN
Employees covered under this contract shall be enrolled in the Minnesota State Retirement System (MSRS) Health
Care Savings Plan (HCSP). The City shall contribute $35 per month to each employees HCSP, and automatically
deposit a percentage of each employees regular pay, severance pay and comp time buy back, as outlined in
Appendix D.
ARTICLE 27. INJURY ON DUTY
Employees injured while on duty, through no fault of the employee, shall be paid the difference between the
employee's regular rate of pay and workers compensation benefits for a period not to exceed twenty-five (25)
working days, in accordance with guidelines set forth in M.S. 176.021, Subd. 5.
ARTICLE 28. COVERALLS/UNIFORMS/FOOTWEAR
28.1 The City of Shakopee shall provide one (1) set of coveralls, one (1) winter coat, one (1) set of rain gear,
high-visibility shirts, and other safety items as needed for each maintenance operator and mechanic,
upon approval of the Public Works Superintendent.
28.2 For the duration of this agreement the City of Shakopee will pay 100% of the cost of weekly uniform
rental with laundering for maintenance operators and mechanics for up to ten (10) items in, ten (10) items
out, and two (2) on the shelf (being worn). Employees may choose a combination of pants, jeans, shorts,
short sleeved shirts and long-sleeved shirts that will best meet their individual work needs. Employees are
responsible to report any requests, changes, or errors to the Public Works Superintendent immediately.
28.3 The City of Shakopee shall provide up to $175 per year toward the purchase of work shoes, boots, or
footwear accessories. An itemized receipt must be submitted in order to receive the reimbursement.
Footwear purchased with these funds must meet OSHA requirements for the individuals regular job
duties. If the desired shoe/boot/accessory costs more than the Citys allowance, the employee shall be
responsible for the difference.
New employees starting prior to July 1 shall be provided with the allowance upon the start of work. Employees
starting after July 1 of a given year shall not be eligible for a boot allowance until the first quarter of the following
year.
ARTICLE 29. REPLACEMENT
The Employer shall provide reimbursement/replacement of personal property such as glasses when accidentally
damaged while on duty. The Employee must submit a written claim within a reasonably prompt time after the
incident. Such claim must be verified by the Supervisor.
ARTICLE 30. REQUIRED LICENSES
The City will pay the difference between a standard drivers license, and CDL drivers license, with required
endorsements at the time of renewal.
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ARTICLE 31. WAGES
The wage rates to be paid shall be as shown in Appendix A. Each year of the contract, the wage scale will
increase across the board three percent (3%). Employees will also receive a step increase on their anniversary
date, provided the employee is not at the top step and there is movement on the scale.
31.1 Temporary Lead Assignment: Employees assigned by the Employer as a Temporary Lead shall be paid
$1.50 per hour in addition to their base rate of pay for the hours worked in this position. Assignments shall
be for a minimum period of 2 hours. The position shall be assigned at the sole discretion of the Employer.
31.2 Me Too: In the case that non-union employees of the City receive an annual Cost of Living Adjustment
during the course of this agreement that is in excess of the three percent (3%) increases provided for in
this agreement, Appendix A shall be adjusted to provide an equal increase to employees covered under
this agreement.
31.3 Re-opener: In the case that the City completes a general wage study, market study, organizational study,
compensation study, classification study, or any other similar type of research during the time period
covered by this contract, and that the study supports a wage change for employees covered in this
contract, both the City and the Union shall agree to re-open this article and the corresponding Appendix
for negotiation.
ARTICLE 32. LICENSURE / CERTIFICATION PAY
The City of Shakopee and the Union recognize that education and training improve the quality of the workforce
and the level of service provided to the public. Therefore, the City shall provide premium pay to those employees
receiving specified licenses or certificates, as outlined in Appendix B.
Premium pay is added to base pay after all other considerations are made. Any employee eligible for premium
pay as a result of obtaining one of the specified licenses or certifications shall not be entitled to pyramid said
payments in excess of $2.00 per hour.
ARTICLE 33. RESPONSE TIME REQUIREMENT
All employees hired after December 31, 2013 will be required to reside within thirty (30) minutes (weather and
traffic permitting) of the Public Works building by the end of their probationary period. If the employer and
employee agree to modify the above time line it must be in writing with a copy distributed to the City
Administrator and the Union.
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ARTICLE 34. WAIVER
34.1 Any and all prior agreements, resolutions, practices, rules and regulations regarding terms and conditions
of employment, to the extent inconsistent with the provisions of this Agreement, are hereby superseded.
34.2 The parties mutually acknowledge that during the negotiations, which resulted in this Agreement, each
had the unlimited right and opportunity to make demands and proposals with respect to any term or
condition of employment not removed by law from bargaining. All agreements and understandings arrived
at by the parties are set forth in writing in this Agreement for the stipulated duration of this Agreement.
The Employer and the Union each voluntarily and unqualifiedly waives the right to meet and negotiate,
regarding any and all terms and conditions of employment referred to or covered in this Agreement or
with respect to any term or condition of employment not specifically referred to or covered by this
Agreement, even though such terms or conditions may not have been within the knowledge or
contemplation of either or both of the parties at the time this Agreement was negotiated or executed.
ARTICLE 35. MEET AND CONFER
The City and Union agree to meet and confer regarding items of concern (non-negotiable items) that are
brought forth by the Union and the City.
ARTICLE 36. DURATION
This Agreement shall be effective as of January 1, 2017 and shall remain in full force and effect until December
31, 2019.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on this day of
_____________________, 2017.
FOR THE CITY OF SHAKOPEE FOR MINNESOTA TEAMSTERS PUBLIC AND LAW ENFORCEMENT
EMPLOYEES UNION, LOCAL NO. 320
____ ____
Mayor Local 320 Representative
____ ____
City Administrator Union Steward
____ ____
City Clerk Union Steward
14
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APPENDIX A
80% 85% 90% 95% 100%

3% increase -- 12-26-2016 $22.99 $24.43 $25.86 $27.30 $28.74
3% increase --12-25-2017 $23.68 $25.16 $26.64 $28.12 $29.60
3% increase-- 12-24-2018 $24.39 $25.91 $27.44 $28.96 $30.49
Lead Maintenance Operator Single Step

3% increase -- 12-26-2016 $31.47
3% increase --12-25-2017 $32.41
3% increase -- 12-24-2018 $33.38
80% 85% 90% 95% 100%

Mechanic
3% increase -- 12-26-2016 $24.50 $26.04 $27.56 $29.10 $30.63
3% increase -- 12-25-2017 $25.24 $26.82 $28.39 $29.97 $31.55
3% increase -- 12-24-2018 $26.00 $27.62 $29.24 $30.87 $32.50
Lead Mechanic Single Step

3% increase -- 12-26-2016 $33.36
3% increase -- 12-25-2017 $34.36
3% increase -- 12-24-2018 $35.39
15
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APPENDIX B
Licensure & Certification Pay
The Employer shall provide the following premium pay to those employees receiving additional
licensure or certification related to their position:
I. Maintenance Operators
A. Public Works Certificate

--American Public Works Association (APWA), Minnesota Chapter Public Works
Certificate $0.75 / hour premium
B. Waste Water Licensure

--Class SC Waste Water $0.25 / hour premium
--Class SB Waste Water $0.50 / hour premium
C. Fertilizer/Chemical Applicator License $0.50 / hour premium

D. Playground Inspector Certification $0.50 / hour premium
II. Mechanic
A. Mechanics Test Series $0.80 / hour premium

--Successfully pass 8 tests in the (combined) Medium/Heavy Truck and Automotive Test
Series, thereby attaining Master Mechanic status. City shall have final approval on qualifying
licenses.
B. DOT Inspector Certification $0.50 / hour premium
Employees shall consult their supervisor prior to obtaining any of the above listed licenses or
certifications, to determine whether the City has a need for additional employees with a particular
license or certification. The City has sole authority to determine how many employees with a given
license or certificate are needed for the successful operation of the Department, and shall provide
premium pay only to that number of employees. However, there shall be no limit on the number of
Maintenance Operators that may obtain a Public Works Certificate and the resulting premium pay.
If there are more employees interested in obtaining a license or certificate than the City has a need
for, the individual(s) with the most seniority will be given the opportunity over other equally qualified
candidates. However, once an employee has successfully obtained a given license or certificate and
is regularly assigned to perform the related work, they cannot be bumped from that position and the
corresponding premium pay by a more senior employee wishing to obtain the license or certificate
and subsequent premium pay.
In addition to successfully obtaining the license or certificate, the employee must be regularly
assigned to work in an applicable position. Regularly assigned is defined as at least 6 months per
year for item B and at least 3 months per year for C.
** See Article XXXI for additional relevant terms.
16
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APPENDIX C
POST EMPLOYMENT HEALTH CARE SAVINGS PLAN (HCSP)

CONTRIBUTION SCHEDULE FOR Teamsters, Local 320 MEMBERS
Years of Service
with the City of Hire Beginning 2 Beginning 7 Beginning 16 Beginning
Shakopee 1 yr. through 6 yrs. through 15 yr. thru 24 yr. 25th yr. +
% of payroll 0% 2% 3% 4% 5%
contribution
City Contribution $35 per $35 per $35 per $35 per $35 per
month month month month month
End of Year Buy 100% of 100% of 100% of 100% of
Back of Comp 0% hours in hours in hours in hours in
Time excess of 40 excess of 40 excess of 40 excess of 40
% of Severance NA NA 100% 100% 100%

Pay*
Accrued Vacation
at the Time of 0% 0% 50% 50% 100%
Departure
Accelerated Sick NA NA NA 100% 100%

Leave Payout
Sick time accrued
above the max cap NA NA 100% 100% 100%
(cash, HSA or
HCSP
* Severance Pay as defined in the City of Shakopee Personnel Handbook
17
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Accelerated Sick Leave Severance Payout
The City of Shakopee appreciates employees, who through long-term service and dedication,
contribute to making the city a successful and positive service provider. In recognition thereof, the
City acknowledges such long-term service by providing an accelerated sick leave payout formula
listed below if the employee meets all the following conditions:
Full-time or part-time benefit-eligible employee with the City of Shakopee for 15 continuous
years or more.
Employee must reach the age (usually age 55, as governed by Minnesota Statutes, 2004,
353.29 and related chapters) and service requirements to be qualified for retirement under
PERA.
Employee is separating employment in good standing.
The percentage of the severance pay-out shall be based on a maximum of 960 hours of
accumulated sick leave calculated on the basis of the employees current annual base pay.
The accelerated severance payment will be deposited in the employees HCSP account not
later than the first regularly scheduled payday following the employees final day of
employment.
Completion of Continuous Service

With the City of Shakopee Step-up Payout formula
15 years 55%
16 years 57%
17 years 59%
18 years 61%
19 years 63%
20 years 65%
21 years 67%
22 years 69%
23 years 71%
24 years 73%
25 years 75%
Anniversary date of full-time employment or part-time benefit-eligible date is used to compute years
of service with Shakopee.
18
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*4.B.1.

October 3, 2017
FROM: Kyle Sobota, Senior Planner

Subject:
Set Public Hearing for Vacation of Certain Drainage and Utility Easements in Maple Trail
Estates 1st and 2nd Additions
Adopt Resolution No. 7935, a resolution setting the public hearing for the request to vacate
certain drainage and utility easements in Maple Trail Estates 1st and 2nd Additions
Recommendation:
Adopt the resolution as presented.
Discussion:
Cal Haasken has applied to vacate certain drainage and utility easements within Maple Trail
Estates 1st and 2nd Additions. The vacation request will be reviewed at the October
5th Planning Commission meeting. Resolution No. 7935 sets the public hearing for the
October 17th City Council meeting.
Budget Impact:
N/A
ATTACHMENTS:
Easement Sketch
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Page 54 of 242
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*4.C.1.

October 3, 2017
FROM: Chris Dellwo, Captain

Subject:
Declare Four Vehicles as Surplus Property
Declare four vehicles as surplus property and authorize their disposal.
Recommendation:
Approve the policy/action requested.
Discussion:
The following vehicles were obtained through successful forfeiture proceedings:
1. 2000 Honda Accord, VIN: 1HGCG5647YA033164

2. 2001 Nissan Altima, VIN: 1N4DL01D41C235453
3. 2003 Toyota Camry, VIN: 4T1BE32K13U253492
4. 2005 Honda Odyssey, VIN: 5FNRL387X5B025529
After being declared surplus, the vehicles will be sold at auction and the proceeds, if any, will
be disbursed according to Minnesota State Statute.
Budget Impact:
None
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*4.D.1.

October 3, 2017
FROM: Steve Lillehaug, Public Works Director/City Engineer

TO: Mayor & Council Members
Subject:
Update City Code Chapters 50 and 90 Pertaining to Telecommunications and Small Cell
Wireless Permitting
1. Adopt Ordinance 970, repealing City Code sections 50.15 through 50.99
Telecommunications Permit.
2. Adopt Ordinance 971, amending City Code sections 90.30 through 90.99, Right-of-Way
Management.
Recommendation:
Adoption of Ordinance 970 and Ordinance 971.
Discussion:
Background
During the 2017 legislative session, the telecommunications industry sought to gain access to
city rights-of-way (ROW) and city structures within those ROW for small cell wireless
facilities. They were successful, and the new law grants access to use the ROW and city
poles and structures within the ROW throughout the city.
In response, the League of Minnesota Cities provided recommended language revisions to

the League's model ROW ordinance that reflects the language from the new provisions in
Minnesota Statute, Sections 237.12 and 237.163 as expanded in the 2017 Legislative Session
to allow for the deployment of small wireless facilities in the ROW. The League's original
model ROW ordinance was used as the basis of the city's current ROW ordinance, which
was last adopted in 2000. Using the League's model ordinance has served the city well for the
past 17 years.
Proposed City Code Updates

City Codes 90.30 through 90.99, Right-of-Way Management, provide the governance to
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ensure the integrity of its streets and appropriate use of the right-of-way. The proposed City
Code updates to this section (see attached) are consistent with and provide for the
continuance of this governance as well as providing for the health, safety, and welfare of its
citizens. The proposed updates are consistent with the League's model ROW ordinance and
are expected to continue to serve the City well.
Additionally, with the past update that occurred in 2000 and in conjunction with the current
proposed right-of-way management update, City Code Sections 50.15 through 50.99,
Telecommunications Permit should be repealed in its entirety. All code requirements
pertaining to permitting for telecommunications are now fully addressed and covered within
the updated City Code Section 90, Right-of-Way Management.
Small Cell Wireless Facilities

Small cell wireless facilities are typically pole mounted antennas. Attached is a "Proposed
Design" exhibit that provides an example of antennas that we expect to see. A second exhibit
attached shows examples of "installations we prefer to avoid", which provisions in the
proposed city code addresses including items such as pole height, pole
diameter, avoiding substantial ground mounted support equipment, size of the antenna,
aesthetics, etc.
There are two general categories of the placement and installation of small cell wireless
facilities: 1) on structures owned by the small cell wireless company, and 2) on facilities
owned by the city. Under the first category, if they install antennas on their own poles or
other private utility company's poles, the city would simply handle this as a normal ROW
permit item. Under the second category where the small cell wireless company desires to
install their facilities on city infrastructure (e.g. light poles, or other facility), the law allows
for and the proposed city code would require a separate colocation agreement between the
city and the wireless provider. This agreement between the city and antenna
owner would provide the governance for the attachment to the city's poles. The League of
Minnesota Cities is in the process of developing a model colocation agreement for this
application. It is expected that additional fees and rental rates will apply as part of these
colocation agreement arrangements.
Budget Impact:
No budget impact.
ATTACHMENTS:
Antenna examples
City Code 90 - revised tracking version
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City Code 90 - final version
City Code 50 - Repeal
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ORDINANCE NO. 971
AN ORDINANCE OF THE CITY OF SHAKOPEE, MINNESOTA AMENDING

SHAKOPEE CITY CODE CHAPTER 90, STREETS AND SIDEWALKS
THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, ORDAINS:

Section 1,Chapter 90.30 through 90.99 of the Shakopee City Code is amended to read as follows:
CHAPTER 90: STREETS AND SIDEWALKS
Section
Right-of-Way Management
90.30 Findings, purpose, and intent
90.31 Election to manage the public right-of-way
90.32 Definitions
90.33 Administration
90.34 Utility Coordination Committee
90.35 Registration; right-of-way occupancy and registration information
90.36 Reporting obligations
90.37 Permits
90.38 Issuance of permit; conditions
90.39 Permit fees
90.40 Right-of-way patching and restoration
90.41 Joint applications
90.42 Supplementary applications
90.43 Other obligations
90.44 Denial or revocation of permit
90.45 Installation requirements
90.46 Inspection
90.47 Work done without a permit
90.48 Supplementary notification
90.49 Revocation of permits
90.50 Mapping data
90.51 Undergrounding
90.52 Relocation of facilities
90.53 Interference by other facilities
90.54 Right-of-way vacation; reservation of right
90.55 Indemnification and liability
90.56 Abandoned and unusable facilities
90.57 Appeal
90.58 Reservation of regulatory and police powers
90.99 Penalty
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2
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RIGHT-OF-WAY MANAGEMENT
90.30 FINDINGS, PURPOSE, AND INTENT.
(A) To provide for the health, safety, and welfare of its citizens, and to ensure the
integrity of its streets and the appropriate use of the rights-of-way, the city strives to keep its
rights-of-way in a state of good repair and free from unnecessary encumbrances.
(B) Accordingly, the city enacts this new subchapter relating to right-of-way permits
and administration. This subchapter imposes reasonable regulation on the placement and
maintenance of facilities and equipment currently within the citys rights-of-way or to be placed
therein at some future time. It is intended to complement the regulatory roles of state and federal
agencies. Under this subchapter, persons excavating and obstructing the rights-of-way will bear
financial responsibility for their work through the recovery of out-of-pocket and projected costs
from persons using the public rights-of-way.
(C) This section shall be interpreted consistently with 1997 Session Laws, Ch. 123,
substantially codified in M.S. 237.16, 237.162, 237.163, 237.79, 237.81, and 238.086 (the
Act), and 2017 Session laws, Chapter 94 amending the Act as they may be amended from time
to time, and the other laws governing applicable rights of the city and users of the right-of-way.
This subchapter shall also be interpreted consistent with Minn. Rules 7819.0050 through
7819.9950 where possible. To the extent that any provision of this subchapter cannot be
interpreted consistently with the Minn. Rules, the interpretation most consistent with the Act and
other applicable statutory and case law is intended. This section shall not be interpreted to limit
the regulatory and police powers of the city to adopt and enforce general ordinances necessary to
protect the health, safety, and welfare of the public.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.31 ELECTION TO MANAGE THE PUBLIC RIGHT-OF-WAY.
Pursuant to the authority granted to the city under state and federal statutory,
administrative, and common law, the city elects pursuant M.S. 237.163, subd. 2(b), as it may
be amended from time to time, to manage rights-of-way within its jurisdiction.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.32 DEFINITIONS.
For the purpose of this subchapter, the following definitions shall apply unless the
context clearly indicates or requires a different meaning. References to subdivisions are, unless
otherwise specified, references to subdivisions in this subchapter.
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ABANDONED FACILITY. A facility no longer in service or physically disconnected
from a portion of the operating facility, or from any other facility, that is in use or still carries
service. A facility is not abandoned unless declared so by the right-of-way user.
APPLICANT. Any person requesting permission to excavate or obstruct a right-of-way.
CITY. The City of Shakopee, Minnesota. For purposes of 90.54, CITY means its
elected officials, officers, employees, and agents.
COLLOCATE OR COLLOCATION. To install, mount, maintain, modify, operate, or
replace a small wireless facility on, under, within, or adjacent to an existing wireless support
structure or utility pole that is owned privately, or by the city or other governmental unit.
Note: See, Minn. Stat. 237.162, Subd. 10.
COMMISSION. The Minnesota Public Utilities Commission.
CONGESTED RIGHT-OF-WAY. A crowded condition in the subsurface of the public
right-of-way that occurs when the maximum lateral spacing between existing underground
facilities does not allow for construction of new underground facilities without using hand
digging to expose the existing lateral facilities in conformance with M.S. 216D.04, subd. 3, as
it may be amended from time to time, over a continuous length in excess of 500 feet.
CONSTRUCTION PERFORMANCE BOND. Any of the following forms of security
provided at permittees option:
(1) Individual project bond;
(2) Cash deposit;
(3) Security of a form listed or approved under M.S. 15.73, as it may be
amended from time to time;
(4) Letter of credit, in a form acceptable to the city;
(5) Self-insurance, in a form acceptable to the city; and
(6) A blanket bond for projects within the city, or other form of construction
bond, for a time specified and in a form acceptable to the city.
DEGRADATION. A decrease in the useful life of the right-of-way caused by excavation
in or disturbance of the right-of-way, resulting in the need to reconstruct such right-of-way
earlier than would be required if the excavation or disturbance did not occur.
DEGRADATION COST. Subject to Minn. Rules 7819.1100, means the cost to achieve a
level of restoration as determined by the city at the time the permit is issued, not to exceed the
maximum restoration shown in plates 1 to 13, set forth in Minn Rules 7819.9900 to 7819.9950.
DEGRADATION FEE. The estimated fee established at the time of permitting by the
city to recover costs associated with the decrease in the useful life of the right-of-way caused by
the excavation, and which equals the degradation cost.
DELAY PENALTY. The penalty imposed as a result of unreasonable delays in right-of-
way excavation, obstruction, patching, or restoration as established by permit.
DEPARTMENT. The Department of Public Works of the city.
DEPARTMENT INSPECTOR. Any person authorized by the city to carry out
inspections related to the provisions of this subchapter.
DIRECTOR. The Director of the Department of Public Works of the city, or the
Directors designee.
EMERGENCY. A condition that:
(1) Poses a danger to life or health, or of a significant loss of property; or
(2) Requires immediate repair or replacement of facilities in order to restore
service to a customer.
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EQUIPMENT. Any tangible asset used to install, repair, or maintain facilities in any
right-of-way.
EXCAVATE. To dig into or in any way remove or physically disturb or penetrate any
part of a right-of-way.
EXCAVATION PERMIT. The permit which, pursuant to this subchapter, must be
obtained before a person may excavate in a right-of-way. An EXCAVATION PERMIT allows
the holder to excavate that part of the right-of-way described in such permit.
EXCAVATION SUBDIVISION PERMIT FEE. Money paid to the city by an applicant
to cover the costs as provided in 90.39.
FACILITY or FACILITIES. Tangible asset in the public right-of-way required to
provide utility service. The term does not include facilities to the extent the location and
relocation of such facilities are preempted by M.S. 161.45, as it may be amended from time to
time, governing utility facility placement in state trunk highways.
FIVE-YEAR PROJECT PLAN. Shows projects adopted by the city for construction
within the next 5 years.
HIGH-DENSITY CORRIDOR. A designated portion of the public right-of-way within
which telecommunications right-of-way users having multiple and competing facilities may be
required to build and install facilities in a common conduit system or other common structure.
HOLE. An excavation in the right-of-way, with the excavation having a length less than
the width of the pavement or adjacent pavement.
LOCAL REPRESENTATIVE. A local person or persons, or designee of such person or
persons, authorized by a registrant to accept service and to make decisions for that registrant
regarding all matters within the scope of this subchapter.
MANAGEMENT COSTS. The actual costs the city incurs in managing its rights-of-way,
including such costs, if incurred, as those associated with registering applicants; issuing,
processing, and verifying right-of-way or small wireless facility permit applications; inspecting
job sites and restoration projects; maintaining, supporting, protecting, or moving user facilities
during right-of-way work; determining the adequacy of right-of-way restoration; restoring work
inadequately performed after providing notice and the opportunity to correct the work; and
revoking right-of-way or small wireless facility permits. MANAGEMENT COSTS do not
include payment by a telecommunications right-of-way user for the use of the right-of-way,
unreasonable fees of a third-party contractor used by the city including fees tied to or based on
customer counts, access lines, or revenues generated by the right-of-way or for the city, the fees
and cost of litigation relating to the interpretation of State Session Laws 1997, Ch. 123; M.S.
237.162 or 237.163, as they may be amended from time to time, or any ordinance enacted under
those sections, or the city fees and costs related to appeals taken pursuant to 90.57.
OBSTRUCT. To place any tangible object in a right-of-way so as to hinder free and open
passage over that or any part of the right-of-way.
OBSTRUCTION PERMIT. The permit which, pursuant to this subchapter, must be
obtained before a person may obstruct a right-of-way, allowing the holder to hinder free and
open passage over the specified portion of that right-of-way, for the duration specified therein,
including a blanket permit for a period of time and for types of work specified by the Director, if
deemed appropriate in Directors discretion.
OBSTRUCTION PERMIT FEE. Money paid to the city by a permittee to cover the
costs as provided in 90.39.
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PATCH or PATCHING. A method of pavement replacement that is temporary in nature.
A PATCH consists of:
(1) The compaction of the sub-base and aggregate base; and
(2) The replacement, in kind, of the existing pavement for a minimum of 2
feet beyond the edges of the excavation in all directions. A PATCH is considered full restoration
only when the pavement is included in the citys 5-year project plan.
PAVEMENT. Any type of improved surface that is within the public right-of-way and
that is paved or otherwise constructed with bituminous, concrete, aggregate, or gravel.
PERMIT. Has the meaning given right-of-way permit in M.S. 237.162, as it may be
amended from time to time.
PERMITTEE. Any person to whom a permit to excavate or obstruct a right-of-way has
been granted by the city under this subchapter.
PERSON. An individual or entity subject to the laws and rules of this state, however
organized, whether public or private, whether domestic or foreign, whether for profit or
nonprofit, and whether natural, corporate, or political.
PROBATION. The status of a person that has not complied with the conditions of this
subchapter.
PROBATIONARY PERIOD. One year from the date the permittee has been notified in
writing that it has been placed on probation.
PUBLIC RIGHT-OF-WAY OR RIGHT-OF-WAY. Has the meaning given it in M.S.
237.162, subd. 3, as it may be amended from time to time.
REGISTRANT. Any person who:
(1) Has or seeks to have its equipment or facilities located in any right-of-
way; or
(2) In any way occupies or uses, or seeks to occupy or use, the right-of-way or
place its facilities or equipment in the right-of-way.
RESTORE or RESTORATION. The process by which an excavated right-of-way and
surrounding area, including pavement and foundation, is returned to the same condition and life
expectancy that existed before excavation.
RESTORATION COST. The amount of money paid to the city by a permittee to achieve
the level of restoration according to plates 1 to 13 of Minn. Rules 7819.1100, subp. 1, on file
with the Director.
RIGHT-OF-WAY PERMIT. Either the excavation permit or the obstruction permit, or
both, depending on the context, required by this subchapter.
RIGHT-OF-WAY USER.
(1) A telecommunications right-of-way user as defined by M.S. 237.162,
subd. 4, as it may be amended from time to time; or
(2) A person owning or controlling a facility in the right-of-way that is used
or intended to be used for providing utility service, and who has a right under law, franchise, or
ordinance to use the public right-of-way.
SERVICE or UTILITY SERVICE. Includes:
(1) Services provided by a public utility as defined in M.S. 216B.02,
subds. 4 and 6, as it may be amended from time to time;
(2) Services of a telecommunications right-of-way user, including
transporting of voice or data information;
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(3) Services of a cable communications system as defined in M.S. 238.02,
subd. 3, as it may be amended from time to time;
(4) Natural gas or electric energy or telecommunications services provided by
a local government unit;
(5) Services provided by a cooperative electric association organized under
M.S. Ch. 308A; and
(6) Water, sewer, steam, cooling, or heating services.
SERVICE LATERAL. An underground facility that is used to transmit, distribute, or
furnish gas, electricity, communications, or water from a common source to an end-use
customer. A SERVICE LATERAL is also an underground facility that is used in the removal of
wastewater from a customers premises.
SMALL WIRELESS FACILITY. A wireless facility that meets both of the following
qualifications:
(1) Each antenna is located inside an enclosure of no more than six cubic feet
in volume or could fit within such an enclosure; and
(2) All other wireless equipment associated with the small wireless facility
provided such equipment is, in aggregate, no more than 28 cubic feet in volume, not including
electric meters, concealment elements, telecommunications demarcation boxes, battery backup
power systems, grounding equipment, power transfer switches, cutoff switches, cable, conduit,
vertical cable runs for the connection of power and other services, and any equipment concealed
from public view within or behind an existing structure or concealment.
Note: Minn. Stat. 237.162, Subd. 11.
SUPPLEMENTARY APPLICATION. An application made to excavate or obstruct more
of the right-of-way than allowed in, or to extend, a permit that had already been issued.
TELECOMMUNICATIONS RIGHT-OF-WAY USER. A person owning or controlling
a facility in the right-of-way, or seeking to own or control a facility in the right-of-way, that is
used or is intended to be used for providing wireless service, or transporting telecommunication
or other voice or data information. For purposes of this subchapter, a cable communication
system defined and regulated under M.S. Ch. 238, as it may be amended from time to time, and
telecommunication activities related to providing natural gas or electric energy services, whether
provided by a public utility as defined in M.S. 216B.02, as it may be amended from time to
time, a municipality, a municipal gas or power agency organized under M.S. Chs. 453 and 453A,
as they may be amended from time to time, or a cooperative electric association organized under
M.S. Ch. 308A, as it may be amended from time to time, are not TELECOMMUNICATIONS
RIGHT-OF-WAY USERS for purposes of this subchapter except to the extent such entity is
offering wireless service.
TEMPORARY SURFACE. The compaction of sub-base and aggregate base and
replacement, in kind, of the existing pavement only to the edges of the excavation. It is
temporary in nature except when the replacement is of pavement included in the citys 2-year
plan, in which case it is considered full restoration.
TRENCH. An excavation in the right-of-way, with the excavation having a length equal
to or greater than the width of the pavement or adjacent pavement.
TWO-YEAR PROJECT PLAN. Shows projects adopted by the city for construction
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000; Ord. 760, passed 5-25-2006)
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UTILITY POLE. A pole that is used in whole or in part to facilitate telecommunications
or electric service.
WIRELESS FACILITY. Equipment at a fixed location that enables the provision of
wireless services between user equipment and a wireless service network, including equipment
associated with wireless service, a radio transceiver, antenna, coaxial, or fiber-optic cable,
regular and backup power supplies, and a small wireless facility, but not including wireless
support structures, wireline backhaul facilities, or cables between utility poles or wireless support
structures, or not otherwise immediately adjacent to and directly associated with a specific
antenna.
WIRELESS SERVICE. Any service using licensed or unlicensed wireless spectrum,
including the use of Wi-Fi, whether at a fixed location or by means of a mobile device, that is
provided using wireless facilities. Wireless service does not include services regulated under
Title VI of the Communications Act of 1934, as amended, including cable service.
WIRELESS SUPPORT STRUCTURE. A new or existing structure in a right-of-way
designed to support or capable of supporting small wireless facilities, as reasonabley determined
by the city.
90.33 ADMINISTRATION.
The Director is the principal city official responsible for the administration of the rights-
of-way, right-of-way permits, and the ordinances related thereto. The Director may delegate any
or all of the duties hereunder.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.34 UTILITY COORDINATION COMMITTEE.
The city may create an Advisory Utility Coordination Committee. Participation on the
Committee is voluntary. It will be composed of any registrants that wish to assist the city in
obtaining information and by making recommendations regarding use of the right-of-way, and to
improve the process of performing construction work therein. The city may determine the size of
such Committee and shall appoint members from a list of registrants that have expressed a desire
to assist the city.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.35 REGISTRATION; RIGHT-OF-WAY OCCUPANCY AND REGISTRATION

INFORMATION.
(A) Registration and right-of-way occupancy.

(1) Registration generally. Each person who occupies, uses, or seeks to
occupy or use, the right-of-way or place any equipment or facilities in or on the right-of-way,
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including persons with installation and maintenance responsibilities by lease, sub-lease, or
assignment, must register with the city. Registration will consist of providing application
information and paying a registration fee.
(2) Registration prior to work. No person may construct, install, repair,
remove, relocate, or perform any other work on, or use any facilities or any part thereof in any
right-of-way without first being registered with the city.
(3) Exceptions.
(a) Nothing in this subchapter shall be construed to repeal or amend
the provisions of a city ordinance establishing the rights of and limitations placed on persons to
plant or maintain boulevard plantings or gardens in the area of the right-of-way between their
property and the street curb.
(b) Persons shall not be deemed to use or occupy the right-of-way, and
shall not be required to obtain any permits or satisfy any other requirements under this
subchapter for the following:
1. Planting or maintaining boulevard plantings or gardens;
2. Other surface landscaping works;
3. Maintenance of driveways and parking lots unless such
maintenance requires excavation work in the right-of-way;
4. Construction or maintenance of street furnishings, bus stop
benches, shelters, or posts and pillars;
5. Snow removal activities;
6. Construction and maintenance of irrigation systems
provided that the system does not connect directly to water mains in the right-of-way; and
7. Nothing herein relieves a person from complying with the
provisions of the M.S. Ch. 216D, as it may be amended from time to time, also known as the
Gopher One-Call Law.
(B) Registration information.
(1) Information required. The information provided to the city at the time of
registration shall include, but not be limited to:
(a) Each registrants name, address, and e-mail address if applicable,
and telephone and facsimile numbers;
(b) The name, address, and e-mail address, if applicable, and
telephone and facsimile numbers of a local representative. The local representative or designee
shall be accessible for consultation at all times. Current information regarding how to contact the
local representative in an emergency shall be provided at the time of registration;
(c) A certificate of insurance or self-insurance:
1. Verifying that an insurance policy has been issued to the
registrant by an insurance company authorized to do business in the state or a form of self
insurance acceptable to the city;
2. Verifying that the registrant is insured against claims for
personal injury, including death, as well as claims for property damage arising out of the:
a. Use and occupancy of the right-of-way by the
registrant, its officers, agents, employees, and permittees; and
b. Placement and use of facilities and equipment in the
right-of-way by the registrant, its officers, agents, employees, and permittees, including, but not
Page 70 of 242
limited to, protection against liability arising from completed operations, damage of underground
facilities, and collapse of property.
3. Either naming the city as an additional insured as to whom
the coverages required herein are in force and applicable and for whom defense will be provided
as to all such coverages or otherwise providing evidence satisfactory to the Director that the city
is fully covered and will be defended through registrants insurance for all actions included in
Minn. Rules 7819.1250;
4. Requiring that the city be notified 30 days in advance of
cancellation of the policy or material modification of a coverage term; and
5. Indicating comprehensive liability coverage, automobile
liability coverage, workers compensation, and umbrella coverage established by the city in
amounts sufficient to protect the city and the public and to carry out the purposes and policies of
this subchapter.
6. If the person is a corporation, a copy of the certificate is
required to be filed under Minn. Stat. Sec. 300.06 as recorded and certified to by the Secretary of
State.
7. A copy of the persons order granting a certificate of
authority from the Minnesota Public Utilities Commission or other authorization or approval
from the applicable state or federal agency to lawfully operate, where the person is lawfully
required to have such authorization or approval from said commission or other state or federal
agency.
(d) The city may require a copy of the actual insurance policies if
necessary to ensure the Director that the policy provides adequate third-party claim coverage and
city indemnity and defense coverage for all actions included in the indemnity required by Minn.
Rules 7819.1250; and
(e) Such evidence as the Director may require that the person is
authorized to do business in the state.
(2) Notice of changes. The registrant shall keep all of the information listed
above current at all times by providing to the city information as to changes within 15 days
following the date on which the registrant has knowledge of any change.
90.36 REPORTING OBLIGATIONS.
(A) Operations.
(1) Each registrant shall, at the time of registration and by December 1 of each
year, file a construction and major maintenance plan for underground facilities with the city.
Such plan shall be submitted using a format designated by the city and shall contain the
information determined by the city to be necessary to facilitate the coordination and reduction in
the frequency of excavations and obstructions of rights-of-way.
(2) The plan shall include, but not be limited to, the following information:
(a) The locations and the estimated beginning and ending dates of all
projects to be commenced during the next calendar year (in this section, a next-year project);
and
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(b) To the extent known, the tentative locations and estimated
beginning and ending dates for all projects contemplated for the 5 years following the next
calendar year (in this subchapter, a 5-year project).
(3) The term PROJECT in this section shall include both next-year projects
and 5-year projects.
(4) By January 1 of each year, the city will have available for inspection in the
citys office a composite list of all projects of which the city has been informed of the annual
plans. All registrants are responsible for keeping themselves informed of the current status of this
list. Thereafter, by February 1, each registrant may change any project in its list of next-year
projects, and must notify the city and all other registrants of all such changes in said list.
Notwithstanding the foregoing, a registrant may at any time join in a next-year project of another
registrant listed by the other registrant.
(B) Additional next-year projects. Notwithstanding the foregoing, the city will not
deny an application for a right-of-way permit for failure to include a project in a plan submitted
to the city if the registrant has used commercially reasonable efforts to anticipate and plan for the
project.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.37 PERMITS.
(A) Permit required.

(1) Except as otherwise provided in this code, no person may obstruct or
excavate any right-of-way, or install or place facilities in the right-of-way, without first having
obtained the appropriate right-of-way permit from the city to do so.
(a) Excavation permit. An excavation permit is required by a registrant
to excavate that part of the right-of-way described in such permit and to hinder free and open
passage over the specified portion of the right-of-way by placing facilities described therein, to
the extent and for the duration specified therein.
(b) Obstruction permit. An obstruction permit is required by a
registrant to hinder free and open passage over the specified portion of the right-of-way by
placing equipment described therein on the right-of-way, to the extent and for the duration
specified therein. An obstruction permit is not required if a person already possesses a valid
excavation permit for the same project.
(c) Small Wireless Facility Permit. A small wireless facility permit is
required by a registrant to erect or install a wireless support structure, to collocate a small
wireless facility, or to otherwise install a small wireless facility in the specified portion of the
right-of-way, to the extent specified therein, provided that such permit shall remain in effect for
the length of time the facility is in use, unless lawfully revoked.
(2) Permit extensions. No person may excavate or obstruct the right-of-way
beyond the date or dates specified in the permit unless:
(a) Such person makes a supplementary application for another right-
of-way permit before the expiration of the initial permit; and
(b) A new permit or permit extension is granted.
(3) Delay permitpenalty.
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(a) In accordance with Minn. Rules 7819.1000, subp. 3, and
notwithstanding 90.31, the city shall establish and impose a delay penalty for unreasonable
delays in right-of-way excavation, obstruction, patching, or restoration.
(b) The delay penalty shall be established from time to time by City
Council resolution. A delay penalty will not be imposed for delays due to force majeure,
including inclement weather, civil strife, acts of God, or other circumstances beyond the control
of the applicant.
(4) Permit display. Permits issued under this subchapter shall be
conspicuously displayed or otherwise available at all times at the indicated work site and shall be
available for inspection by the city.
(B) Permit applications. Application for a permit is made to the city. Right-of-way
permit applications shall contain, and will be considered complete only upon compliance with
the requirements of the following provisions:
(1) Registration with the city pursuant to this subchapter;
(2) Submission of a completed permit application form, including all required
attachments, and scaled drawings showing the location and area of the proposed project and the
location of all known existing and proposed facilities;
(3) Payment of money due the city for:
(a) Permit fees, estimated restoration costs, and other management
costs;
(b) Prior obstructions or excavations; or
(c) Any undisputed loss, damage, or expense suffered by the city
because of applicants prior excavations or obstructions of the rights-of-way or any emergency
actions taken by the city,
(4) (a) Payment of disputed amounts due the city by posting security or
depositing in an escrow account an amount equal to at least 100% of the amount owing; and
(b) Posting an additional or larger construction performance bond for
additional facilities when applicant requests an excavation permit to install additional facilities
and the city deems the existing construction performance bond inadequate under applicable
standards.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.38 ISSUANCE OF PERMIT; CONDITIONS.
(A) Permit issuance. If the applicant has satisfied the requirements of this subchapter,
the city shall issue a permit.
(B) Conditions. The city may impose reasonable conditions upon the issuance of the
permit and the performance of the applicant thereunder to protect the health, safety, and welfare
or when necessary to protect the right-of-way and its current use. In addition, a permittee must
comply with all requirements of local, state and federal laws, including but not limited to
Minnesota Statutes 216D.01 - .09 (Gopher One Call Excavation Notice System) and Minnesota
Rules Chapter 7560.
(2013 Cod(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
(C) Small Wireless Facility Purpose and Findings. The City desires high quality
services to accommodate the needs of residents and businesses. At the same time, the City strives
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to minimize the negative impacts that small wireless facilities can create. These negative impacts
include, but are not limited to, interference with right-of-way user sight lines, impacts to right-of-
way user circulation, incompatible aesthetics with the surrounding area, fall zone risk, clear zone
risk, creating navigation obstacles, interference with future travel way expansion plans,
interference with the delivery of other utility services, interference with stormwater management
facilities, and increased noise pollution. To minimize these negative impacts, the city will
consider impacts to the public health, safety, and welfare when reviewing a small wireless permit
application and a request to enter into a small wireless facility collocation agreement. The public
health, safety, and welfare can be best accommodated by locating small wireless facilities in the
following order, which affords the greatest protection of the public:
(1) Locate outside of the right-of-way.
(2) Locate in the right-of-way on or adjacent to Principal Arterial, other
Arterial, or Major/Minor Collector roads, as classified by the Metropolitan Council Functional
Classification System.
(3) Collocate on existing wireless support structures within the right-of-way.
(4) Locate on a new wireless support structure within the right-of-way that
replaces an existing wireless support structure of the same height.
replaces an existing wireless support structure whose height is less than or equal to 50 feet.
(6) Locate on a new wireless support structure within the right-of-way whose
height is similar to nearby structures.
height is less than or equal to 50 feet.
The city will also consider factors such as aesthetic compatibility of the small
wireless facility with surrounding structures, ability to eliminate, underground, or screen
ground-mounted equipment, dangers within the small wireless facility fall zone, distance
of the small wireless facility from roads, sidewalks, trails and bicycle lanes, and future
roadway, pedestrian, bicycle, water, wastewater, and stormwater improvement plans for
the site before issuing small wireless facility permit or entering into a standard small
wireless facility collocation agreement.
(D) Small Wireless Facility Conditions. In addition to sections B and C above, the
erection or installation of a wireless support structure, the collocation of a small wireless facility,
or other installation of a small wireless facility in the right-of-way shall be subject to the
following conditions:
(1) A small wireless facility shall only be collocated on the particular wireless
support structure, under those attachment specification, and at the height indicated in the
applicable permit application.
(2) No new wireless support structure installed within the right-of-way shall
exceed 50 feet in height above ground level without the citys written authorization, provided
that the city may impose a lower height limit in the applicable permit to protect the public health,
safety and welfare or to protect the right-of-way and its current use, and further provided that a
registrant may replace an existing wireless support structure exceeding 50 feet in height with a
structure of the same height subject to such conditions or requirements as may be imposed in the
applicable permit.
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(3) No wireless facility may extend more than 10 feet above its wireless
support structure.
(4) Where an applicant proposes to install a new wireless support structure in
the right-of-way, a 600 feet minimum separation is required between such structure and any
existing wireless support structure or other facilities in and around the right-of-way.
(5) Where an applicant proposes collocation on a decorative wireless support
structure, sign or other structure not intended to support small wireless facilities, the city may
impose reasonable requirements to accommodate the particular design, appearance or intended
purpose of such structure.
(6) Where an applicant proposes to replace a wireless support structure, the
city may impose reasonable restocking, replacement, or relocation requirements on the
replacement of such structure. The diameter of the new wireless support structure that replaces
an existing wireless support structure shall not exceed the diameter of the existing wireless
support structure by more than 50 percent.
(7) The small wireless facility shall have limited exposed cabling and
mounting hardware. It shall also match the wireless support structure it is attached to in color
and, as close as practicable, in material and design.
(8) The small wireless facility shall not interfere with public safety wireless
telecommunications.
(9) A small wireless facility attached to an existing wireless support structure
shall not block light emanating from the wireless support structure and shall not otherwise
interfere with the original use or intent of the wireless support structure.
(10) Ground mounted equipment associated with the small wireless facility is
prohibited unless the applicant can show that ground-mounted equipment is necessary for
operation of the small wireless facility. If ground-mounted equipment is necessary, it shall
comply with other provisions of the city Ordinance and the following:
a. Ground-mounted equipment shall be placed below grade unless not
technically feasible;
b. Ground-mounted equipment shall not disrupt traffic or pedestrian
circulation and shall not interfere with vehicle and pedestrian intersection sight lines and clear
zones;
c. Ground-mounted equipment shall not create a safety hazard;
d. If placed above grade, ground-mounted equipment shall be
separated from the nearest ground-mounted equipment on the same block by a minimum of 330
feet unless the equipment is placed underground, or unless waived by the Director;
e. If placed above grade, ground-mounted equipment shall be limited
to 3 feet in height and 28 cubic feet in cumulative size.
(11) Exemptions. No small wireless facility permit is required to conduct the
following activities in the right-of-way:
a. Routine maintenance of small wireless facility;
b. Replacement of a small wireless facility that is substantially
similar or smaller in size, weight, height, and wind or structural loading that the small wireless
facility being replaced; or
c. Installation, placement, maintenance, operation, or replacement of
micro wireless facilities that are suspended on cables strung between existing utility poles in
compliance with national safety codes.
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Note: Minn. Stat. 237.163, Subd. 3b.
(E) Small Wireless Facility Agreement. A small wireless facility shall only be
collocated on a small wireless support structure owned or controlled by the city, or any other city
asset in the right-of-way, after the applicant has executed a standard small wireless facility
collocation agreement with the city. The standard collocation agreement may require payment of
rent and maintenance associated with the collocation. Electric service will not be provided by the
City. The standard collocation agreement shall be in addition to, and not lieu of, the required
small wireless facility permit, provided, however, that the applicant shall not be additionally
required to obtain a license or franchise in order to collocate. Issuance of a small wireless facility
permit does not supersede, alter or affect any then-existing agreement between the city and
applicant.
Note: Minn. Stat. 237.163, Subd. 6(g).
(E) Action on Small Wireless Facility Permit Application,
(1) Deadline for Action. The city shall approve or deny a small wireless facility
permit application within 90 days after filing of such application. The small wireless facility
permit and any associated building permit application, shall be deemed approved if the city fails
to approve or deny the application within the review periods established in this section.
(2) Consolidated Applications. An applicant my file a consolidated small
wireless facility permit application addressing the proposed collocation of up to 15 small
wireless facilities or a greater number if agreed to by a local government unit, provided that all
small wireless facilities in the application:
a. are located within a two-mile radius;
b. consist of substantially similar equipment; and
c. are to be placed on similar types of wireless support structures.
In rendering a decision on a consolidated permit application, the city may approve some small
wireless facilities and deny others, but may not use denial of one or more permits as a basis to
deny all small wireless facilities in the application.
(3) Tolling of Deadline. The 90-day deadline for action on a small wireless
facility permit application may be tolled if:
(a) The city receives applications from one or more applicants seeking
approval of permits for more than 30 small wireless facilities within a seven-day period. In such
case, the city may extend the deadline for all such applications by 30 days by informing the
affected applicants in writing of such extension.
(b) The applicant fails to submit all required documents or information
and the city provides written notice of incompleteness to the applicant within 30 days of receipt
of the application. Upon submission of additional documents or information, the city shall have
ten days to notify the applicant in writing of any still-missing information.
(c) The city and a small wireless facility applicant agree in writing to toll
the review period.
Note: Minn. Stat. 237.163, Subd. 3c.
90.39 PERMIT FEES.
(A) Fee schedule and fee allocation. The citys permit fee schedule shall be available
to the public and established in advance where reasonably possible. The permit fees shall be
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designed to recover the citys actual costs incurred in managing the right-of-way and shall be
based on an allocation among all users of the right-of-way, including the city.
(B) Excavation permit fee. The city shall establish impose an excavation permit fee in
an amount sufficient to recover the following costs:
(1) The city management costs; and
(2) Degradation costs, if applicable.
(C) Obstruction permit fee. The city shall establish the impose an obstruction permit
fee and shall be in an amount sufficient to recover the city management costs.
(D) Small Wireless Facility Fee. The city shall impose a small wireless facility permit
fee in an amount sufficient to recover:
(1) management costs, and;
(2) city engineering, make-ready, and construction costs associated with
collocation of small wireless facilities.
(E) Payment of permit fees. No excavation permit or obstruction permit shall be
issued without payment of excavation or obstruction permit fees. The city may allow the
applicant to pay such fees within 30 days of billing, or on some other payment plan agreed to by
the Director at the Directors discretion.
(EF) Non-refundable. Permit fees that were paid for a permit that the city has revoked
for a breach as stated in 90.49 are not refundable.
(FG) Application to franchises. Unless otherwise agreed to in a franchise, management
costs may be charged separately from and in addition to the franchise fees imposed on a right-of-
way user in the franchise.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.40 RIGHT-OF-WAY PATCHING AND RESTORATION.
(A) Timing. The work to be done under the excavation permit, and the patching and
restoration of the right-of-way as required herein, must be completed within the dates specified
in the permit, increased by as many days as work could not be done because of circumstances
beyond the control of the permittee or when work was prohibited as unseasonal or unreasonable
under 90.43.
(B) Patch and restoration. The permittee must patch its own work. The city may
choose either to have the permittee restore the surface and subgrading portions of the right-of-
way or to restore the surface portion of the right-of-way itself.
(1) City restoration. If the city restores the surface portion of the right-of-way,
the permittee shall pay the costs thereof within 30 days of billing. If, following such restoration,
the pavement settles due to the permittees improper backfilling, the permittee shall pay to the
city, within 30 days of billing, all costs associated with correcting the defective work.
(2) Permittee restoration. If the permittee restores the right-of-way itself, it
shall at the time of application for an excavation permit, post a construction performance bond in
accordance with the provisions of Minn. Rules 7819.3000.
(3) Degradation fee in lieu of restoration. In lieu of right-of-way restoration, a
right-of-way user may elect to pay a degradation fee, however, the right-of-way user shall remain
responsible for replacing and compacting the subgrade and aggregate based material in the
excavation and the degradation fee shall not include the cost to accomplish these responsibilities.
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(C) Standards. The permittee shall perform patching and restoration according to the
standards and with the materials specified by the city and shall comply with Minn. Rules
7819.1100.
(D) Duty to correct defects. The permittee shall correct defects in patching, restoration
performed by permittee or its agents. Upon notification from the city, the permittee shall correct
all restoration work to the extent necessary, using the method required by the city. Unless
otherwise agreed to by the Director, said work shall be completed within 5 calendar days of
receipt of the notice from the city, not including days during which work cannot be done because
of circumstances constituting force majeure or days when work is prohibited as unseasonal or
unreasonable under 90.43.
(E) Failure to restore. If the permittee fails to restore the right-of-way in the manner
and to the condition required by the city, or fails to satisfactorily and timely complete all
restoration required by the city, the city shall notify the permittee in writing of the specific
alleged failure or failures and shall allow the permittee 10 days from receipt of said written
notice to cure said failure or failures, unless otherwise extended by the Director. In the event the
permittee fails to cure, the city may at its option perform the necessary work and permittee shall
pay to the city, within 30 days of billing, the cost of restoring the right-of-way. If permittee fails
to pay as required, the city may exercise its rights under the construction performance bond.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000) Penalty, see 90.99
90.41 JOINT APPLICATIONS.
(A) Joint application. Registrants may jointly apply for permits to excavate or
obstruct the right-of-way at the same place and time.
(B) Shared fees. Registrants who apply for permits for the same obstruction or
excavation, which the city does not perform, may share in the payment of the obstruction or
excavation permit fee. In order to obtain a joint permit, registrants must agree among themselves
as to the portion each will pay and indicate the same on their applications.
(C) With city projects. Registrants who join in a scheduled obstruction or excavation
performed by the city, whether or not it is a joint application by 2 or more registrants or a single
application, are not required to pay the excavation or obstruction and degradation portions of the
permit fee, but a permit would still be required.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.42 SUPPLEMENTARY APPLICATIONS.
(A) Limitation on area.

(1) A right-of-way permit is valid only for the area of the right-of-way
specified in the permit. No permittee may do any work outside the area specified in the permit,
except as provided herein.
(2) Any permittee which determines that an area greater than that specified in
the permit must be obstructed or excavated must before working in that greater area:
(a) Make application for a permit extension and pay any additional
fees required thereby; and
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(b) Be granted a new permit or permit extension.
(B) Limitation on dates. A right-of-way permit is valid only for the dates specified in
the permit. No permittee may begin its work before the permit start date or, except as provided
herein, continue working after the end date. If a permittee does not finish the work by the permit
end date, it must apply for a new permit for the additional time it needs and receive the new
permit or an extension of the old permit before working after the end date of the previous permit.
This supplementary application must be submitted before the permit end date.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.43 OTHER OBLIGATIONS.
(A) Compliance with other laws.

(1) Obtaining a right-of-way permit does not relieve permittee of its duty to
obtain all other necessary permits, licenses, and authority and to pay all fees required by the city
or other applicable rule, law, or regulation. A permittee shall comply with all requirements of
local, state, and federal laws, including but not limited to, M.S. 216D.01 through 216D.09, as
they may be amended from time to time, (Gopher One-Call Excavation Notice System) and
Minn. Rules 7560.
(2) A permittee shall perform all work in conformance with all applicable
codes and established rules and regulations, and is responsible for all work done in the right-of-
way pursuant to its permit, regardless of who does the work.
(B) Prohibited work. Except in an emergency, and with the approval of the city, no
right-of-way obstruction or excavation may be done when seasonally prohibited or when
conditions are unreasonable for such work.
(C) Interference with right-of-way. A permittee shall not so obstruct a right-of-way
that the natural free and clear passage of water through the gutters or other waterways shall be
interfered with, unless otherwise approved by the Director. Private vehicles of those doing work
in the right-of-way may not be parked within or next to a permit area, unless parked in
conformance with city parking regulations. The loading or unloading of trucks must be done
solely within the defined permit area unless specifically authorized by the permit.
(D) Trenchless excavation. As a condition of all applicable permits, permittees
employing trenchless excavation methods, including but not limited to horizontal directional
drilling, shall follow all requirements set forth in M.S. Ch. 216D, as it may be amended from
time to time, and Minn. Rules 7560, and shall require potholing or open cutting over existing
underground utilities before excavating, as determined by the Director. Trenchless excavations
deeper than 5 feet will not be permitted without written approval from the Director.
(E) Traffic control. A permittee shall implement traffic-control measures in the area
of the work and shall use traffic-control procedures in accordance with the most recent manuals
on uniform traffic-control, traffic-control devices, and traffic zone layouts published by the state.
90.44 DENIAL OR REVOCATION OF PERMIT.
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(A) Reasons for Denial. The city may deny a permit for failure to meet the
requirements and conditions of this subchapter or if the city determines that the denial is
necessary to protect the health, safety, and welfare or when necessary to protect the right-of-way
and its current use.
(B) Procedural Requirements. The denial or revocation of a permit must be made in
writing and must document the basis for the denial. The city must notify the applicant or right-
of-way user in writing within three business days of the decision to deny or revoke a permit. If
an application is denied, the right-of-way user may address the reasons for denial identified by
the city and resubmit its application. If the application is resubmitted within 30 days of receipt of
the notice of denial, no additional application fee shall be imposed. The city must approve or
deny the resubmitted application within 30 days after submission.
Note: Minn. Stat. 237.163, Subds. 4(c) and 5(f)
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.45 INSTALLATION REQUIREMENTS.
(A) The excavation, backfilling, patching, and restoration, and all other work
performed in the right-of-way shall be done in conformance with Minn. Rules 7819.1100 and
other applicable local requirements, in so far as they are not inconsistent with the M.S.
237.162 and 237.163, as they may be amended from time to time.
(B) Installation of service laterals shall be performed in accordance with Minn. Rules
Ch. 7560 and this subchapter. Service lateral installation is further subject to those requirements
and conditions set forth by the city in the applicable permits, city specifications, city design
criteria, and agreements referenced in 90.50.
90.46 INSPECTION.
(A) Notice of completion. When the work under any permit hereunder is completed,
the permittee shall furnish a completion certificate in accordance with Minn. Rules 7819.1300.
(B) Site inspection. The permittee shall make the work-site available to the city and to
all others as authorized by law for inspection at all reasonable times during the execution of and
upon completion of the work.
(C) Authority of Director.
(1) At the time of inspection, the Director may order the immediate cessation
of any work which poses a serious threat to the life, health, safety, or well-being of the public.
(2) The Director may issue an order to the permittee to correct any work that
does not conform to the terms of the permit or other applicable standards, conditions, or code. If
the work failure is a substantial breach within the meaning of M.S. 237.163, subd. 4(c), as it
may be amended from time to time, the order shall state that failure to correct the violation will
be cause for revocation of the permit after a specified period determined by the Director. The
permittee shall present proof to the Director that the violation has been corrected within the time
period set forth by the Director in the order. Such proof shall be provided no later than the next
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business day following the day of completion. If such proof has not been presented within the
required time, the Director may revoke the permit pursuant to 90.49.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.47 WORK DONE WITHOUT A PERMIT.
(A) Emergency situations.

(1) Each registrant shall immediately notify the Director of any event
regarding its facilities that the registrant considers to be an emergency. The registrant may
proceed to take whatever actions are necessary to respond to the emergency. Excavators
notification to Gopher State One-Call regarding an emergency situation does not fulfill this
requirement. Within 2 business days after the occurrence of the emergency the registrant shall
apply for the necessary permits, pay the fees associated therewith, and fulfill the rest of the
requirements necessary to bring itself into compliance with this subchapter for the actions it took
in response to the emergency.
(2) If the city becomes aware of an emergency regarding a registrants
facilities, the city will attempt to contact the local representative of each registrant affected, or
potentially affected, by the emergency. In any event, the city may take whatever action it deems
necessary to respond to the emergency, the cost of which shall be borne by the registrant whose
facilities occasioned the emergency.
(B) Non-emergency situations. Except in an emergency, any person who, without first
having obtained the necessary permit, obstructs or excavates a right-of-way, must subsequently
obtain a permit, pay an unauthorized work permit fee in an amount established from time to time
by the City Council, deposit with the city the fees necessary to correct any damage to the right-
of-way, and comply with all of the requirements of this subchapter.
90.48 SUPPLEMENTARY NOTIFICATION.
If the obstruction or excavation of the right-of-way begins later or ends sooner than the
date given on the permit, the permittee shall notify the city of the accurate information as soon as
this information is known.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.49 REVOCATION OF PERMITS.
(A) Substantial breach.

(1) The city reserves its right to revoke any right-of-way permit, without a fee
refund, if there is a substantial breach of the terms and conditions of any statute, ordinance, rule
or regulation, or any material condition of the permit.
(2) A substantial breach by permittee shall include, but shall not be limited to,
the following:
(a) The violation of any material provision of the right-of-way permit;
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(b) An evasion or attempt to evade any material provision of the right-
of-way permit, or the perpetration or attempt to perpetrate any fraud or deceit upon the city or its
citizens;
(c) Any material misrepresentation of fact in the application for a
right-of-way permit;
(d) The failure to complete the work in a timely manner; unless a
permit extension is obtained or unless the failure to complete work is due to reasons beyond the
permittees control; or
(e) The failure to correct, in a timely manner, work that does not
conform to a condition indicated on an order issued pursuant to 90.46(C)(2).
(B) Written notice of breach. If the city determines that the permittee has committed a
substantial breach of a term or condition of any statute, ordinance, rule, regulation, or any
condition of the permit, the city shall make a written demand upon the permittee to remedy such
violation. The demand shall state that continued violations may be cause for revocation of the
permit. A substantial breach, as stated above, will allow the city to place additional or revised
conditions on the permit to mitigate and remedy the breach.
(C) Response to notice of breach. Within a time established by the Director following
the permittees receipt of notification of the breach, the permittee shall provide the city with a
plan to cure the breach, acceptable to the city. The permittees failure to submit a timely and
acceptable plan, or the permittees failure to timely implement the approved plan, shall be cause
for immediate revocation of the permit. Further, the permittees failure to contact the city, or the
permittees failure to submit an acceptable plan, or the permittees failure to reasonably
implement the approved plan, may result in probation for up to 1 full year.
(D) Cause for probation. The city may establish a list of conditions of the permit, that
if breached, will be grounds to place the permittee on probation. The city shall not enforce a
probation program unless and until it has established such conditions, which it may amend from
time to time.
(E) Reimbursement of city costs. If a permit is revoked, the permittee shall also
reimburse the city for the citys reasonable costs, including restoration costs and the costs of
collection and reasonable attorneys fees incurred in connection with such revocation.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.50 MAPPING DATA.
(A) Information required. Each registrant and permittee shall provide mapping
information in a form required by the city in accordance with Minn. Rules 7819.4000 and
7819.4100. Within 90 days following completion of any work pursuant to a permit, the permittee
shall provide the Director accurate maps and drawings certifying the as-built location of all
equipment installed, owed, and maintained by the permittee. Such maps and drawings shall
include the horizontal and vertical location of all facilities and equipment and shall be provided
consistent with the citys electronic mapping system, when practical or as a condition imposed
by the Director. Failure to provide maps and drawings pursuant to this division (A) shall be
grounds for revoking the permit holders registration.
(B) Service laterals.
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(1) All permits issued for the installation or repair of service laterals, other
than minor repairs as defined in Minn. Rules 7560.0150, subp. 2, shall require the permittees
use of appropriate means of establishing the horizontal locations of installed service laterals and
the service lateral vertical locations in those cases where the Director reasonably required it.
(2) Permittees or their subcontractors shall submit to the Director evidence
satisfactory to the Director of the installed service lateral locations. Compliance with this
division (B) and with applicable Gopher State One-Call law and Minn. Rules governing service
laterals installed after December 31, 2005 shall be a condition of any city approval necessary for:
(a) Payments to contractors working on a public improvement project
including those under M.S. Ch. 429, as it may be amended from time to time; and
(b) City approval of performance under development agreements, or
other subdivision or site plan approval under M.S. Ch. 462, as it may be amended from time to
time. The Director shall reasonably determine the appropriate method of providing such
information to the city. Failure to provide prompt and accurate information on the service laterals
installed may result in the revocation of the permit issued for the work or for future permits to
the offending permittee or its subcontractors.
90.51 UNDERGROUNDING.
(A) Purpose.
(1) The purpose of this section is to promote the health, safety, and general
welfare of the public and is intended to foster:
(a) Safe travel over the right-of-way;
(b) Non-travel related safety around homes and buildings where
overhead feeds are connected; and
(c) Orderly development in the city. Location and relocation,
installation and reinstallation of facilities in the right-of-way must be made in accordance with
this division (A).
(2) This section intended to be enforced consistently with state and federal
law regulating right-of-way users, specifically including but not limited to M.S. 161.45,
237.162, 237.163, 301B.01, 222.37, 238.084, and 216B.36, and Minnesota Rules 7819.3100,
7819.5000, and 7819.5100, as they may be amended from time to time, and the
Telecommunications Act of 1996, 47 U.S.C. 253, to the extent the rules do not limit authority
otherwise available to cities.
(B) Undergrounding of facilities. Facilities newly installed, constructed, or otherwise
placed in the public right-of-way or in other public property held in common for public use must
be located and maintained underground pursuant to the terms and conditions of this subchapter
and in accordance with applicable construction standards, subject to the exceptions below.
Above-ground installation, construction, modification, or replacement of meters, gauges,
transformers, street lighting, pad mount switches, capacitor banks, re-closers, and service
connection pedestals shall be allowed. The requirements of this division (B) shall apply equally
outside of the corporate limits of the city coincident with city jurisdiction of platting, subdivision
regulations, or comprehensive planning as may now or in the future be allowed by law.
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(C) Exceptions to undergrounding. The following exceptions to the strict application
of this section shall be allowed upon the conditions stated.
(1) Transmission lines. Above-ground installation, construction, or placement
of those facilities commonly referred to as high voltage transmission lines upon which a
conductors normal operating voltage equals or exceeds 23,000 volts (phase to phase) shall be
allowed only by prior approval of the Council; provided, however, that 60 days prior to
commencement of construction of such a project, the city shall be furnished notice of the
proposed project and, upon request, the right-of-way user involved shall furnish all relevant
information regarding such project to the city. This provision shall not be construed as waiving
the requirements of any other ordinance or regulation of the city as the same may apply to any
such proposed project.
(2) Technical and economic feasibility. Above-ground installation,
construction, or placement of facilities shall be allowed in residential, commercial, and industrial
areas where the Council, following consideration and recommendation by the Planning
Commission, finds that:
(a) Underground placement would place an undue financial burden
upon the landowner, ratepayers, or right-of-way user or would deprive the landowner of the
preservation and enjoyment of substantial property rights; or
(b) Underground placement is impractical or not technically feasible
due to topographical, sub-soil, or other existing conditions which adversely affect underground
facilities placement.
(3) Temporary service. Above-ground installation, construction, or placement
of temporary service lines shall only be allowed:
(a) During new construction of any project for a period not to exceed
24 months;
(b) During an emergency in order to safeguard lives or property within
the city; and
(c) For a period of not more than 7 months when soil conditions make
excavation impractical.
(D) Undergrounding of permanent replacement, relocated, or reconstructed facilities.
(a) If the city finds that 1 or more of the purposes set forth in division
(A) above would be promoted, the city may require a permanent replacement, relocation, or
reconstruction of a facility of more than 300 feet to be located, and maintained underground,
with due regard for seasonal working conditions. For purposes of this subchapter,
RECONSTRUCTION means any substantial repair of or any improvement to existing facilities.
(b) Undergrounding may be required whether a replacement,
relocation, or reconstruction is initiated by the right-of-way user owning or operating the
facilities, or by the city in connection with:
1. The present or future use by the city or other local
government unit of the right-of-way or other public ground for a public project;
2. The public health or safety; or
3. The safety and convenience of travel over the right-of-way.
(E) Retirement of overhead facilities. The City Council may determine whether it is in
the public interest that all facilities within the city, or facilities within certain districts designated
by the city, be permanently placed and maintained underground by a date certain or target date,
independently of undergrounding required pursuant to division (B) above (new facilities) and
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division (D) above (replacement facilities). The decision to underground must be preceded by a
public hearing, after published notice and written notice to the utilities affected (2 weeks
published: 30 days written.) At the hearing, the Council must consider items in division (G)
below and make findings. Undergrounding may not take place until City Council has, after
hearing and notice, adopted a plan containing items in division (H) below.
(F) Public hearings. A hearing must be open to the public and may be continued from
time to time. At each hearing any person interested must be given an opportunity to be heard.
The subject of the public hearings shall be the issue of whether facilities in the right-of-way in
the city, or located within a certain district, shall all be located underground by a date certain.
Hearings are not necessary for the undergrounding required under divisions (B) and (D) above.
(G) Public hearing issues.
(1) The issues to be addressed at the public hearings include, but are not
limited to:
(a) The costs and benefits to the public of requiring the
undergrounding of all facilities in the right-of-way;
(b) The feasibility and cost of undergrounding all facilities by a date
certain as determined by the city and the affected utilities;
(c) The tariff requirements, procedure, and rate design for recovery or
intended recovery of incremental costs for undergrounding by the utilities from ratepayers within
the city; and
(d) Alternative financing options available if the city deems it in the
public interest to require undergrounding by a date certain and deems it appropriate to participate
in the cost otherwise borne by the ratepayers.
(2) Upon completion of the hearing or hearings, the City Council must make
written findings on whether it is in the public interest to establish a plan under which all facilities
will be underground, either city-wide or within districts designated by the city.
(H) Undergrounding plan.
(1) If the Council finds that it is in the public interest to underground all or
substantially all facilities in the public right-of-way or in non-right-of-way public ground, the
Council must establish a plan for such undergrounding.
(2) The plan for undergrounding must include at least the following elements:
(a) Timetable for the undergrounding;
(b) Designation of districts for the undergrounding unless the
undergrounding plan is city- wide;
(c) Exceptions to the undergrounding requirement and procedure for
establishing such exceptions;
(d) Procedures for the undergrounding process, including, but not
limited to, coordination with city projects and provisions to ensure compliance with
nondiscrimination requirements under the law;
(e) A financing plan for funding of the incremental costs if the city
determines that it will finance some of the undergrounding costs, and a determination and
verification of the claimed additional costs to underground incurred by the utility; and
(f) Penalties or other remedies for failure to comply with the
undergrounding.
(I) Facilities location.
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(1) (a) In addition to complying with the requirements of M.S.
216D.01 through 216D.09, as they may be amended from to time (One-Call Excavation Notice
System), before the start date of any right-of-way excavation, each registrant who has facilities
located in the area to be excavated shall mark the horizontal placement of all said facilities.
(b) To the extent its records contain such information, each registrant
shall provide information regarding the approximate vertical location of its facilities to
excavators upon request.
(c) Nothing in this division (I) is meant to limit the rights, duties, and
obligations of facility owners or excavators as set forth in M.S. 216D.01 through 216D.09, as
they may be amended from to time. Any right-of-way user whose facility is less than 20 inches
below a concrete or asphalt surface shall notify and work closely with the excavation contractor
in an effort to establish and mark the exact horizontal and vertical location of its facility and the
best procedure for excavation.
(2) All facilities shall be placed in appropriate portions of right-of-way so as
to cause minimum conflict with other underground facilities. When technically appropriate, all
utilities shall be installed, constructed, or placed within the same trench.
(J) Limitation of Space. To protect the health, safety, and welfare, or when necessary
to protect the right-of-way and its current use, the city shall have the power to prohibit or limit
the placement of new or additional facilities within the right-of-way. In making such decisions,
the city shall strive to the extent possible to accommodate all existing and potential users of the
right-of-way, but shall be guided primarily by considerations of the public interest, the publics
needs for particular utility service, the condition of the right-of-way, the time of year with
respect to essential utilities, the protection of existing facilities in the right-of-way, and future
city plans for public improvements and development projects which have been determined to be
in the public interest.
(K) Responsibility. All owners, platters, or developers are responsible for complying
with the requirements of this section, and prior to final approval of any plat or development plan,
shall submit to the Director written instruments from the appropriate right-of-way users showing
that all necessary arrangements with said users for installation of such facilities have been made.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.52 RELOCATION OF FACILITIES.
A right-of-way user shall promptly and at its own expense, with due regard for seasonal
working conditions, permanently remove and relocate its facilities in the right-of-way when it is
necessary to prevent interference, and not merely for the convenience of the city, in connection
with:
(A) A present or future city use of the right-of-way for a public project;
(B) The public health or safety; or
(C) The safety and convenience of travel over the right-of-way.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.53 INTERFERENCE BY OTHER FACILITIES.
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When the city does work in the right-of-way in its governmental right-of-way
management function and finds it necessary to maintain, support, or move a registrants facilities
to carry out the work without damaging registrants facilities, the city shall notify the local
representative as early as is reasonably possible. The city costs associated therewith will be
billed to that registrant and must be paid within 30 days from the date of billing. Each registrant
shall be responsible for the cost of repairing any facilities in the right-of-way which it or its
facilities damages.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.54 RIGHT-OF-WAY VACATION; RESERVATION OF RIGHT.
If the city vacates a right-of-way that contains the facilities of a registrant, the registrants
rights in the vacated right-of-way are governed by Minn. Rules 7819.3200.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.55 INDEMNIFICATION AND LIABILITY.
By registering with the city, or by accepting a permit under this subchapter, a registrant
or permittee agrees to defend and indemnify the city in accordance with the provisions of Minn.
Rules 7819.1250.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.56 ABANDONED AND UNUSABLE FACILITIES.
(A) Discontinued operations. A registrant who has determined to discontinue all or a

portion of its operations in the city must provide information satisfactory to the city that the
registrants obligations for its facilities in the right-of-way under this subchapter have been
lawfully assumed by another registrant.
(B) Removal. Any registrant who has abandoned facilities in any right-of-way shall
remove it from that right-of-way if required in conjunction with other right-of-way repair,
excavation, or construction.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.57 APPEAL.
(A) A right-of-way user that:

(1) Has been denied registration;
(2) Has been denied a permit;
(3) Has had permit revoked;
(4) Believes that the fees imposed are not in conformity with M.S. 237.163,
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(5) Disputes a decision of the Director regarding the mapping data required by
90.50 may have the denial, revocation, decision, or fee imposition reviewed, upon written
request, go to the City Administrator.
(B) The City Council shall act on a timely written request at its next regularly
scheduled meeting. A decision by the City Council affirming the denial, revocation, or fee
imposition will be in writing and supported by written findings establishing the reasonableness
of the decision.
90.58 RESERVATION OF REGULATORY AND POLICE POWERS.
A permittees or registrants rights are subject to the regulatory and police powers of the
city to adopt and enforce general ordinances necessary to protect the health, safety, and welfare
of the public.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.99 PENALTY.
(A) Every person violates a section, subdivision, paragraph, or provision of this

chapter when the person performs an act thereby prohibited or declared unlawful, or fails to act
when such failure is thereby prohibited or declared unlawful, and upon conviction thereof, shall
be punished as follows.
(1) Misdemeanor. Where the specific section, subdivision, paragraph, or
provision specifically makes violation a misdemeanor, the person shall be punished as for a
misdemeanor; where a violation is committed in a manner or under circumstances so as to
endanger or be likely to endanger any person or property, the person shall be punished as for a
misdemeanor; where the person stands convicted of violation of any provision of this chapter,
exclusive of violations relating to the standing or parking of an unattended vehicle, within the
immediate preceding 12-month period for the third or subsequent time, the person shall be
punished as for a misdemeanor.
(2) Petty misdemeanor. As to any violation not constituting a misdemeanor
under the provisions of division (A)(1) above, the person shall be punished as for a petty
misdemeanor.
(2013 Code, 7.99)
(B) Each day that any person continues in violation of 90.08 shall be a separate
offense, and punishable as such.
(2013 Code, 7.08)
(Ord. 1, passed 4-1-1978; Ord. 337, passed 7-23-1992; Ord. 570, passed 8-24-2000)
Adopted in regular session of the City Council of the City of Shakopee, Minnesota held this 3rd
___________________________________
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Attest:
_________________________,
City Clerk
Published in the Shakopee Valley News on the ______ day of _____________, 2017.
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ORDINANCE NO. 971
AN ORDINANCE OF THE CITY OF SHAKOPEE, MINNESOTA AMENDING

SHAKOPEE CITY CODE CHAPTER 90, STREETS AND SIDEWALKS

Section 1,Chapter 90.30 through 90.99 of the Shakopee City Code is amended to read as follows:
CHAPTER 90: STREETS AND SIDEWALKS
Section
Right-of-Way Management
90.30 Findings, purpose, and intent
90.31 Election to manage the public right-of-way
90.32 Definitions
90.33 Administration
90.34 Utility Coordination Committee
90.35 Registration; right-of-way occupancy and registration information
90.36 Reporting obligations
90.37 Permits
90.38 Issuance of permit; conditions
90.39 Permit fees
90.40 Right-of-way patching and restoration
90.41 Joint applications
90.42 Supplementary applications
90.43 Other obligations
90.44 Denial or revocation of permit
90.45 Installation requirements
90.46 Inspection
90.47 Work done without a permit
90.48 Supplementary notification
90.49 Revocation of permits
90.50 Mapping data
90.51 Undergrounding
90.52 Relocation of facilities
90.53 Interference by other facilities
90.54 Right-of-way vacation; reservation of right
90.55 Indemnification and liability
90.56 Abandoned and unusable facilities
90.57 Appeal
90.58 Reservation of regulatory and police powers
90.99 Penalty
Page 90 of 242
RIGHT-OF-WAY MANAGEMENT
90.30 FINDINGS, PURPOSE, AND INTENT.
(A) To provide for the health, safety, and welfare of its citizens, and to ensure the
integrity of its streets and the appropriate use of the rights-of-way, the city strives to keep its
rights-of-way in a state of good repair and free from unnecessary encumbrances.
(B) Accordingly, the city enacts this new subchapter relating to right-of-way permits
and administration. This subchapter imposes reasonable regulation on the placement and
maintenance of facilities and equipment currently within the citys rights-of-way or to be placed
therein at some future time. It is intended to complement the regulatory roles of state and federal
agencies. Under this subchapter, persons excavating and obstructing the rights-of-way will bear
financial responsibility for their work through the recovery of out-of-pocket and projected costs
from persons using the public rights-of-way.
(C) This section shall be interpreted consistently with 1997 Session Laws, Ch. 123,
substantially codified in M.S. 237.16, 237.162, 237.163, 237.79, 237.81, and 238.086 (the
Act), and 2017 Session laws, Chapter 94 amending the Act as they may be amended from time
to time, and the other laws governing applicable rights of the city and users of the right-of-way.
This subchapter shall also be interpreted consistent with Minn. Rules 7819.0050 through
7819.9950 where possible. To the extent that any provision of this subchapter cannot be
interpreted consistently with the Minn. Rules, the interpretation most consistent with the Act and
other applicable statutory and case law is intended. This section shall not be interpreted to limit
the regulatory and police powers of the city to adopt and enforce general ordinances necessary to
protect the health, safety, and welfare of the public.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.31 ELECTION TO MANAGE THE PUBLIC RIGHT-OF-WAY.
Pursuant to the authority granted to the city under state and federal statutory,
administrative, and common law, the city elects pursuant M.S. 237.163, subd. 2(b), as it may
be amended from time to time, to manage rights-of-way within its jurisdiction.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.32 DEFINITIONS.
For the purpose of this subchapter, the following definitions shall apply unless the
context clearly indicates or requires a different meaning. References to subdivisions are, unless
otherwise specified, references to subdivisions in this subchapter.
ABANDONED FACILITY. A facility no longer in service or physically disconnected
from a portion of the operating facility, or from any other facility, that is in use or still carries
service. A facility is not abandoned unless declared so by the right-of-way user.
APPLICANT. Any person requesting permission to excavate or obstruct a right-of-way.
Page 91 of 242
CITY. The City of Shakopee, Minnesota. For purposes of 90.54, CITY means its
elected officials, officers, employees, and agents.
COLLOCATE OR COLLOCATION. To install, mount, maintain, modify, operate, or
replace a small wireless facility on, under, within, or adjacent to an existing wireless support
structure or utility pole that is owned privately, or by the city or other governmental unit.
Note: See, Minn. Stat. 237.162, Subd. 10.
COMMISSION. The Minnesota Public Utilities Commission.
CONGESTED RIGHT-OF-WAY. A crowded condition in the subsurface of the public
right-of-way that occurs when the maximum lateral spacing between existing underground
facilities does not allow for construction of new underground facilities without using hand
digging to expose the existing lateral facilities in conformance with M.S. 216D.04, subd. 3, as
it may be amended from time to time, over a continuous length in excess of 500 feet.
CONSTRUCTION PERFORMANCE BOND. Any of the following forms of security
provided at permittees option:
(1) Individual project bond;
(2) Cash deposit;
(3) Security of a form listed or approved under M.S. 15.73, as it may be
amended from time to time;
(4) Letter of credit, in a form acceptable to the city;
(5) Self-insurance, in a form acceptable to the city; and
(6) A blanket bond for projects within the city, or other form of construction
bond, for a time specified and in a form acceptable to the city.
DEGRADATION. A decrease in the useful life of the right-of-way caused by excavation
in or disturbance of the right-of-way, resulting in the need to reconstruct such right-of-way
earlier than would be required if the excavation or disturbance did not occur.
DEGRADATION COST. Subject to Minn. Rules 7819.1100, means the cost to achieve a
level of restoration as determined by the city at the time the permit is issued, not to exceed the
maximum restoration shown in plates 1 to 13, set forth in Minn Rules 7819.9900 to 7819.9950.
DEGRADATION FEE. The estimated fee established at the time of permitting by the
city to recover costs associated with the decrease in the useful life of the right-of-way caused by
the excavation, and which equals the degradation cost.
DELAY PENALTY. The penalty imposed as a result of unreasonable delays in right-of-
way excavation, obstruction, patching, or restoration as established by permit.
DEPARTMENT. The Department of Public Works of the city.
DEPARTMENT INSPECTOR. Any person authorized by the city to carry out
inspections related to the provisions of this subchapter.
DIRECTOR. The Director of the Department of Public Works of the city, or the
Directors designee.
EMERGENCY. A condition that:
(1) Poses a danger to life or health, or of a significant loss of property; or
(2) Requires immediate repair or replacement of facilities in order to restore
service to a customer.
EQUIPMENT. Any tangible asset used to install, repair, or maintain facilities in any
right-of-way.
EXCAVATE. To dig into or in any way remove or physically disturb or penetrate any
part of a right-of-way.
Page 92 of 242
EXCAVATION PERMIT. The permit which, pursuant to this subchapter, must be
obtained before a person may excavate in a right-of-way. An EXCAVATION PERMIT allows
the holder to excavate that part of the right-of-way described in such permit.
EXCAVATION SUBDIVISION PERMIT FEE. Money paid to the city by an applicant
to cover the costs as provided in 90.39.
FACILITY or FACILITIES. Tangible asset in the public right-of-way required to
provide utility service. The term does not include facilities to the extent the location and
relocation of such facilities are preempted by M.S. 161.45, as it may be amended from time to
time, governing utility facility placement in state trunk highways.
FIVE-YEAR PROJECT PLAN. Shows projects adopted by the city for construction
HIGH-DENSITY CORRIDOR. A designated portion of the public right-of-way within
which telecommunications right-of-way users having multiple and competing facilities may be
required to build and install facilities in a common conduit system or other common structure.
HOLE. An excavation in the right-of-way, with the excavation having a length less than
the width of the pavement or adjacent pavement.
LOCAL REPRESENTATIVE. A local person or persons, or designee of such person or
persons, authorized by a registrant to accept service and to make decisions for that registrant
regarding all matters within the scope of this subchapter.
MANAGEMENT COSTS. The actual costs the city incurs in managing its rights-of-way,
including such costs, if incurred, as those associated with registering applicants; issuing,
processing, and verifying right-of-way or small wireless facility permit applications; inspecting
job sites and restoration projects; maintaining, supporting, protecting, or moving user facilities
during right-of-way work; determining the adequacy of right-of-way restoration; restoring work
inadequately performed after providing notice and the opportunity to correct the work; and
revoking right-of-way or small wireless facility permits. MANAGEMENT COSTS do not
include payment by a telecommunications right-of-way user for the use of the right-of-way,
unreasonable fees of a third-party contractor used by the city including fees tied to or based on
customer counts, access lines, or revenues generated by the right-of-way or for the city, the fees
and cost of litigation relating to the interpretation of State Session Laws 1997, Ch. 123; M.S.
237.162 or 237.163, as they may be amended from time to time, or any ordinance enacted under
those sections, or the city fees and costs related to appeals taken pursuant to 90.57.
OBSTRUCT. To place any tangible object in a right-of-way so as to hinder free and open
passage over that or any part of the right-of-way.
OBSTRUCTION PERMIT. The permit which, pursuant to this subchapter, must be
obtained before a person may obstruct a right-of-way, allowing the holder to hinder free and
open passage over the specified portion of that right-of-way, for the duration specified therein,
including a blanket permit for a period of time and for types of work specified by the Director, if
deemed appropriate in Directors discretion.
OBSTRUCTION PERMIT FEE. Money paid to the city by a permittee to cover the
costs as provided in 90.39.
PATCH or PATCHING. A method of pavement replacement that is temporary in nature.
A PATCH consists of:
(1) The compaction of the sub-base and aggregate base; and
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(2) The replacement, in kind, of the existing pavement for a minimum of 2
feet beyond the edges of the excavation in all directions. A PATCH is considered full restoration
only when the pavement is included in the citys 5-year project plan.
PAVEMENT. Any type of improved surface that is within the public right-of-way and
that is paved or otherwise constructed with bituminous, concrete, aggregate, or gravel.
PERMIT. Has the meaning given right-of-way permit in M.S. 237.162, as it may be
amended from time to time.
PERMITTEE. Any person to whom a permit to excavate or obstruct a right-of-way has
been granted by the city under this subchapter.
PERSON. An individual or entity subject to the laws and rules of this state, however
organized, whether public or private, whether domestic or foreign, whether for profit or
nonprofit, and whether natural, corporate, or political.
PROBATION. The status of a person that has not complied with the conditions of this
subchapter.
PROBATIONARY PERIOD. One year from the date the permittee has been notified in
writing that it has been placed on probation.
PUBLIC RIGHT-OF-WAY OR RIGHT-OF-WAY. Has the meaning given it in M.S.
237.162, subd. 3, as it may be amended from time to time.
REGISTRANT. Any person who:
(1) Has or seeks to have its equipment or facilities located in any right-of-
way; or
(2) In any way occupies or uses, or seeks to occupy or use, the right-of-way or
place its facilities or equipment in the right-of-way.
RESTORE or RESTORATION. The process by which an excavated right-of-way and
surrounding area, including pavement and foundation, is returned to the same condition and life
expectancy that existed before excavation.
RESTORATION COST. The amount of money paid to the city by a permittee to achieve
the level of restoration according to plates 1 to 13 of Minn. Rules 7819.1100, subp. 1, on file
with the Director.
RIGHT-OF-WAY PERMIT. Either the excavation permit or the obstruction permit, or
both, depending on the context, required by this subchapter.
RIGHT-OF-WAY USER.
(1) A telecommunications right-of-way user as defined by M.S. 237.162,
(2) A person owning or controlling a facility in the right-of-way that is used
or intended to be used for providing utility service, and who has a right under law, franchise, or
ordinance to use the public right-of-way.
SERVICE or UTILITY SERVICE. Includes:
(1) Services provided by a public utility as defined in M.S. 216B.02,
subds. 4 and 6, as it may be amended from time to time;
(2) Services of a telecommunications right-of-way user, including
transporting of voice or data information;
(3) Services of a cable communications system as defined in M.S. 238.02,
subd. 3, as it may be amended from time to time;
(4) Natural gas or electric energy or telecommunications services provided by
a local government unit;
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(5) Services provided by a cooperative electric association organized under
M.S. Ch. 308A; and
(6) Water, sewer, steam, cooling, or heating services.
SERVICE LATERAL. An underground facility that is used to transmit, distribute, or
furnish gas, electricity, communications, or water from a common source to an end-use
customer. A SERVICE LATERAL is also an underground facility that is used in the removal of
wastewater from a customers premises.
SMALL WIRELESS FACILITY. A wireless facility that meets both of the following
qualifications:
(1) Each antenna is located inside an enclosure of no more than six cubic feet
in volume or could fit within such an enclosure; and
(2) All other wireless equipment associated with the small wireless facility
provided such equipment is, in aggregate, no more than 28 cubic feet in volume, not including
electric meters, concealment elements, telecommunications demarcation boxes, battery backup
power systems, grounding equipment, power transfer switches, cutoff switches, cable, conduit,
vertical cable runs for the connection of power and other services, and any equipment concealed
from public view within or behind an existing structure or concealment.
SUPPLEMENTARY APPLICATION. An application made to excavate or obstruct more
of the right-of-way than allowed in, or to extend, a permit that had already been issued.
TELECOMMUNICATIONS RIGHT-OF-WAY USER. A person owning or controlling
a facility in the right-of-way, or seeking to own or control a facility in the right-of-way, that is
used or is intended to be used for providing wireless service, or transporting telecommunication
or other voice or data information. For purposes of this subchapter, a cable communication
system defined and regulated under M.S. Ch. 238, as it may be amended from time to time, and
telecommunication activities related to providing natural gas or electric energy services, a public
utility as defined in M.S. 216B.02, as it may be amended from time to time, a municipality, a
municipal gas or power agency organized under M.S. Chs. 453 and 453A, as they may be
amended from time to time, or a cooperative electric association organized under M.S. Ch.
308A, as it may be amended from time to time, are not TELECOMMUNICATIONS RIGHT-
OF-WAY USERS for purposes of this subchapter except to the extent such entity is offering
wireless service.
TEMPORARY SURFACE. The compaction of sub-base and aggregate base and
replacement, in kind, of the existing pavement only to the edges of the excavation. It is
temporary in nature except when the replacement is of pavement included in the citys 2-year
plan, in which case it is considered full restoration.
TRENCH. An excavation in the right-of-way, with the excavation having a length equal
to or greater than the width of the pavement or adjacent pavement.
TWO-YEAR PROJECT PLAN. Shows projects adopted by the city for construction
UTILITY POLE. A pole that is used in whole or in part to facilitate telecommunications
or electric service.
WIRELESS FACILITY. Equipment at a fixed location that enables the provision of
wireless services between user equipment and a wireless service network, including equipment
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associated with wireless service, a radio transceiver, antenna, coaxial, or fiber-optic cable,
regular and backup power supplies, and a small wireless facility, but not including wireless
support structures, wireline backhaul facilities, or cables between utility poles or wireless support
structures, or not otherwise immediately adjacent to and directly associated with a specific
antenna.
WIRELESS SERVICE. Any service using licensed or unlicensed wireless spectrum,
including the use of Wi-Fi, whether at a fixed location or by means of a mobile device, that is
provided using wireless facilities. Wireless service does not include services regulated under
Title VI of the Communications Act of 1934, as amended, including cable service.
WIRELESS SUPPORT STRUCTURE. A new or existing structure in a right-of-way
designed to support or capable of supporting small wireless facilities, as reasonably determined
by the city.
90.33 ADMINISTRATION.
The Director is the principal city official responsible for the administration of the rights-
of-way, right-of-way permits, and the ordinances related thereto. The Director may delegate any
or all of the duties hereunder.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.34 UTILITY COORDINATION COMMITTEE.
The city may create an Advisory Utility Coordination Committee. Participation on the
Committee is voluntary. It will be composed of any registrants that wish to assist the city in
obtaining information and by making recommendations regarding use of the right-of-way, and to
improve the process of performing construction work therein. The city may determine the size of
such Committee and shall appoint members from a list of registrants that have expressed a desire
to assist the city.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.35 REGISTRATION; RIGHT-OF-WAY OCCUPANCY AND REGISTRATION

INFORMATION.
(A) Registration and right-of-way occupancy.

(1) Registration generally. Each person who occupies, uses, or seeks to
occupy or use, the right-of-way or place any equipment or facilities in or on the right-of-way,
including persons with installation and maintenance responsibilities by lease, sub-lease, or
assignment, must register with the city. Registration will consist of providing application
information and paying a registration fee.
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(2) Registration prior to work. No person may construct, install, repair,
remove, relocate, or perform any other work on, or use any facilities or any part thereof in any
right-of-way without first being registered with the city.
(3) Exceptions.
(a) Nothing in this subchapter shall be construed to repeal or amend
the provisions of a city ordinance establishing the rights of and limitations placed on persons to
plant or maintain boulevard plantings or gardens in the area of the right-of-way between their
property and the street curb.
(b) Persons shall not be deemed to use or occupy the right-of-way, and
shall not be required to obtain any permits or satisfy any other requirements under this
subchapter for the following:
1. Planting or maintaining boulevard plantings or gardens;
2. Other surface landscaping works;
3. Maintenance of driveways and parking lots unless such
maintenance requires excavation work in the right-of-way;
4. Construction or maintenance of street furnishings, bus stop
benches, shelters, or posts and pillars;
5. Snow removal activities;
6. Construction and maintenance of irrigation systems
provided that the system does not connect directly to water mains in the right-of-way; and
7. Nothing herein relieves a person from complying with the
provisions of the M.S. Ch. 216D, as it may be amended from time to time, also known as the
Gopher One-Call Law.
(B) Registration information.
(1) Information required. The information provided to the city at the time of
registration shall include, but not be limited to:
(a) Each registrants name, address, and e-mail address if applicable,
and telephone and facsimile numbers;
(b) The name, address, and e-mail address, if applicable, and
telephone and facsimile numbers of a local representative. The local representative or designee
shall be accessible for consultation at all times. Current information regarding how to contact the
local representative in an emergency shall be provided at the time of registration;
(c) A certificate of insurance or self-insurance:
1. Verifying that an insurance policy has been issued to the
registrant by an insurance company authorized to do business in the state or a form of self
insurance acceptable to the city;
2. Verifying that the registrant is insured against claims for
personal injury, including death, as well as claims for property damage arising out of the:
a. Use and occupancy of the right-of-way by the
registrant, its officers, agents, employees, and permittees; and
b. Placement and use of facilities and equipment in the
right-of-way by the registrant, its officers, agents, employees, and permittees, including, but not
limited to, protection against liability arising from completed operations, damage of underground
facilities, and collapse of property.
3. Either naming the city as an additional insured as to whom
the coverages required herein are in force and applicable and for whom defense will be provided
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as to all such coverages or otherwise providing evidence satisfactory to the Director that the city
is fully covered and will be defended through registrants insurance for all actions included in
Minn. Rules 7819.1250;
4. Requiring that the city be notified 30 days in advance of
cancellation of the policy or material modification of a coverage term; and
5. Indicating comprehensive liability coverage, automobile
liability coverage, workers compensation, and umbrella coverage established by the city in
amounts sufficient to protect the city and the public and to carry out the purposes and policies of
this subchapter.
6. If the person is a corporation, a copy of the certificate is
required to be filed under Minn. Stat. Sec. 300.06 as recorded and certified to by the Secretary of
State.
7. A copy of the persons order granting a certificate of
authority from the Minnesota Public Utilities Commission or other authorization or approval
from the applicable state or federal agency to lawfully operate, where the person is lawfully
required to have such authorization or approval from said commission or other state or federal
agency.
(d) The city may require a copy of the actual insurance policies if
necessary to ensure the Director that the policy provides adequate third-party claim coverage and
city indemnity and defense coverage for all actions included in the indemnity required by Minn.
Rules 7819.1250; and
(e) Such evidence as the Director may require that the person is
authorized to do business in the state.
(2) Notice of changes. The registrant shall keep all of the information listed
above current at all times by providing to the city information as to changes within 15 days
following the date on which the registrant has knowledge of any change.
90.36 REPORTING OBLIGATIONS.
(A) Operations.
(1) Each registrant shall, at the time of registration and by December 1 of each
year, file a construction and major maintenance plan for underground facilities with the city.
Such plan shall be submitted using a format designated by the city and shall contain the
information determined by the city to be necessary to facilitate the coordination and reduction in
the frequency of excavations and obstructions of rights-of-way.
(2) The plan shall include, but not be limited to, the following information:
(a) The locations and the estimated beginning and ending dates of all
projects to be commenced during the next calendar year (in this section, a next-year project);
and
(b) To the extent known, the tentative locations and estimated
beginning and ending dates for all projects contemplated for the 5 years following the next
calendar year (in this subchapter, a 5-year project).
(3) The term PROJECT in this section shall include both next-year projects
and 5-year projects.
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(4) By January 1 of each year, the city will have available for inspection in the
citys office a composite list of all projects of which the city has been informed of the annual
plans. All registrants are responsible for keeping themselves informed of the current status of this
list. Thereafter, by February 1, each registrant may change any project in its list of next-year
projects, and must notify the city and all other registrants of all such changes in said list.
Notwithstanding the foregoing, a registrant may at any time join in a next-year project of another
registrant listed by the other registrant.
(B) Additional next-year projects. Notwithstanding the foregoing, the city will not
deny an application for a right-of-way permit for failure to include a project in a plan submitted
to the city if the registrant has used commercially reasonable efforts to anticipate and plan for the
project.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.37 PERMITS.
(A) Permit required.

(1) Except as otherwise provided in this code, no person may obstruct or
excavate any right-of-way, or install or place facilities in the right-of-way, without first having
obtained the appropriate right-of-way permit from the city to do so.
(a) Excavation permit. An excavation permit is required by a registrant
to excavate that part of the right-of-way described in such permit and to hinder free and open
passage over the specified portion of the right-of-way by placing facilities described therein, to
the extent and for the duration specified therein.
(b) Obstruction permit. An obstruction permit is required by a
registrant to hinder free and open passage over the specified portion of the right-of-way by
placing equipment described therein on the right-of-way, to the extent and for the duration
specified therein. An obstruction permit is not required if a person already possesses a valid
excavation permit for the same project.
(c) Small Wireless Facility Permit. A small wireless facility permit is
required by a registrant to erect or install a wireless support structure, to collocate a small
wireless facility, or to otherwise install a small wireless facility in the specified portion of the
right-of-way, to the extent specified therein, provided that such permit shall remain in effect for
the length of time the facility is in use, unless lawfully revoked.
(2) Permit extensions. No person may excavate or obstruct the right-of-way
beyond the date or dates specified in the permit unless:
(a) Such person makes a supplementary application for another right-
of-way permit before the expiration of the initial permit; and
(b) A new permit or permit extension is granted.
(3) Delay penalty.
(a) In accordance with Minn. Rules 7819.1000, subp. 3, and
notwithstanding 90.31, the city shall establish and impose a delay penalty for unreasonable
delays in right-of-way excavation, obstruction, patching, or restoration.
(b) The delay penalty shall be established from time to time by City
Council resolution. A delay penalty will not be imposed for delays due to force majeure,
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including inclement weather, civil strife, acts of God, or other circumstances beyond the control
of the applicant.
(4) Permit display. Permits issued under this subchapter shall be
conspicuously displayed or otherwise available at all times at the indicated work site and shall be
available for inspection by the city.
(B) Permit applications. Application for a permit is made to the city. Right-of-way
permit applications shall contain, and will be considered complete only upon compliance with
the requirements of the following provisions:
(1) Registration with the city pursuant to this subchapter;
(2) Submission of a completed permit application form, including all required
attachments, and scaled drawings showing the location and area of the proposed project and the
location of all known existing and proposed facilities;
(3) Payment of money due the city for:
(a) Permit fees, estimated restoration costs, and other management
costs;
(b) Prior obstructions or excavations; or
(c) Any undisputed loss, damage, or expense suffered by the city
because of applicants prior excavations or obstructions of the rights-of-way or any emergency
actions taken by the city,
(4) (a) Payment of disputed amounts due the city by posting security or
depositing in an escrow account an amount equal to at least 100% of the amount owing; and
(b) Posting an additional or larger construction performance bond for
additional facilities when applicant requests an excavation permit to install additional facilities
and the city deems the existing construction performance bond inadequate under applicable
standards.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.38 ISSUANCE OF PERMIT; CONDITIONS.
(A) Permit issuance. If the applicant has satisfied the requirements of this subchapter,
the city shall issue a permit.
(B) Conditions. The city may impose reasonable conditions upon the issuance of the
permit and the performance of the applicant thereunder to protect the health, safety, and welfare
or when necessary to protect the right-of-way and its current use. In addition, a permittee must
comply with all requirements of local, state and federal laws, including but not limited to
Minnesota Statutes 216D.01 - .09 (Gopher One Call Excavation Notice System) and Minnesota
Rules Chapter 7560.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
(C) Small Wireless Facility Purpose and Findings. The City desires high quality
services to accommodate the needs of residents and businesses. At the same time, the City strives
to minimize the negative impacts that small wireless facilities can create. These negative impacts
include, but are not limited to, interference with right-of-way user sight lines, impacts to right-of-
way user circulation, incompatible aesthetics with the surrounding area, fall zone risk, clear zone
risk, creating navigation obstacles, interference with future travel way expansion plans,
interference with the delivery of other utility services, interference with stormwater management
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facilities, and increased noise pollution. To minimize these negative impacts, the city will
consider impacts to the public health, safety, and welfare when reviewing a small wireless permit
application and a request to enter into a small wireless facility collocation agreement. The public
health, safety, and welfare can be best accommodated by locating small wireless facilities in the
following order, which affords the greatest protection of the public:
(1) Locate outside of the right-of-way.
(2) Locate in the right-of-way on or adjacent to Principal Arterial, other
Arterial, or Major/Minor Collector roads, as classified by the Metropolitan Council Functional
Classification System.
(3) Collocate on existing wireless support structures within the right-of-way.
replaces an existing wireless support structure of the same height.
replaces an existing wireless support structure whose height is less than or equal to 50 feet.
height is similar to nearby structures.
height is less than or equal to 50 feet.
The city will also consider factors such as aesthetic compatibility of the small wireless
facility with surrounding structures, ability to eliminate, underground, or screen ground-
mounted equipment, dangers within the small wireless facility fall zone, distance of the
small wireless facility from roads, sidewalks, trails and bicycle lanes, and future roadway,
pedestrian, bicycle, water, wastewater, and stormwater improvement plans for the site
before issuing small wireless facility permit or entering into a standard small wireless
facility collocation agreement.
(D) Small Wireless Facility Conditions. In addition to sections B and C above, the
erection or installation of a wireless support structure, the collocation of a small wireless facility,
or other installation of a small wireless facility in the right-of-way shall be subject to the
following conditions:
(1) A small wireless facility shall only be collocated on the particular wireless
support structure, under those attachment specification, and at the height indicated in the
applicable permit application.
(2) No new wireless support structure installed within the right-of-way shall
exceed 50 feet in height above ground level without the citys written authorization, provided
that the city may impose a lower height limit in the applicable permit to protect the public health,
safety and welfare or to protect the right-of-way and its current use, and further provided that a
registrant may replace an existing wireless support structure exceeding 50 feet in height with a
structure of the same height subject to such conditions or requirements as may be imposed in the
applicable permit.
(3) No wireless facility may extend more than 10 feet above its wireless
support structure.
(4) Where an applicant proposes to install a new wireless support structure in
the right-of-way, a 600 feet minimum separation is required between such structure and any
existing wireless support structure or other facilities in and around the right-of-way.
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(5) Where an applicant proposes collocation on a decorative wireless support
structure, sign or other structure not intended to support small wireless facilities, the city may
impose reasonable requirements to accommodate the particular design, appearance or intended
purpose of such structure.
(6) Where an applicant proposes to replace a wireless support structure, the
city may impose reasonable restocking, replacement, or relocation requirements on the
replacement of such structure. The diameter of the new wireless support structure that replaces
an existing wireless support structure shall not exceed the diameter of the existing wireless
support structure by more than 50 percent.
(7) The small wireless facility shall have limited exposed cabling and
mounting hardware. It shall also match the wireless support structure it is attached to in color
and, as close as practicable, in material and design.
(8) The small wireless facility shall not interfere with public safety wireless
telecommunications.
(9) A small wireless facility attached to an existing wireless support structure
shall not block light emanating from the wireless support structure and shall not otherwise
interfere with the original use or intent of the wireless support structure.
(10) Ground mounted equipment associated with the small wireless facility is
prohibited unless the applicant can show that ground-mounted equipment is necessary for
operation of the small wireless facility. If ground-mounted equipment is necessary, it shall
comply with other provisions of the city Ordinance and the following:
a. Ground-mounted equipment shall be placed below grade unless not
technically feasible;
b. Ground-mounted equipment shall not disrupt traffic or pedestrian
circulation and shall not interfere with vehicle and pedestrian intersection sight lines and clear
zones;
c. Ground-mounted equipment shall not create a safety hazard;
d. If placed above grade, ground-mounted equipment shall be
separated from the nearest ground-mounted equipment on the same block by a minimum of 330
feet unless the equipment is placed underground, or unless waived by the Director;
e. If placed above grade, ground-mounted equipment shall be limited
to 3 feet in height and 28 cubic feet in cumulative size.
(11) Exemptions. No small wireless facility permit is required to conduct the
following activities in the right-of-way:
a. Routine maintenance of small wireless facility;
b. Replacement of a small wireless facility that is substantially
similar or smaller in size, weight, height, and wind or structural loading that the small wireless
facility being replaced; or
c. Installation, placement, maintenance, operation, or replacement of
micro wireless facilities that are suspended on cables strung between existing utility poles in
compliance with national safety codes.
Note: Minn. Stat. 237.163, Subd. 3b.
(E) Small Wireless Facility Agreement. A small wireless facility shall only be
collocated on a small wireless support structure owned or controlled by the city, or any other city
asset in the right-of-way, after the applicant has executed a standard small wireless facility
collocation agreement with the city. The standard collocation agreement may require payment of
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rent and maintenance associated with the collocation. Electric service will not be provided by the
City. The standard collocation agreement shall be in addition to, and not lieu of, the required
small wireless facility permit, provided, however, that the applicant shall not be additionally
required to obtain a license or franchise in order to collocate. Issuance of a small wireless facility
permit does not supersede, alter or affect any then-existing agreement between the city and
applicant.
Note: Minn. Stat. 237.163, Subd. 6(g).
(E) Action on Small Wireless Facility Permit Application,
(1) Deadline for Action. The city shall approve or deny a small wireless facility
permit application within 90 days after filing of such application. The small wireless facility
permit and any associated building permit application, shall be deemed approved if the city fails
to approve or deny the application within the review periods established in this section.
(2) Consolidated Applications. An applicant my file a consolidated small
wireless facility permit application addressing the proposed collocation of up to 15 small
wireless facilities or a greater number if agreed to by a local government unit, provided that all
small wireless facilities in the application:
a. are located within a two-mile radius;
b. consist of substantially similar equipment; and
c. are to be placed on similar types of wireless support structures.
In rendering a decision on a consolidated permit application, the city may approve some small
wireless facilities and deny others, but may not use denial of one or more permits as a basis to
deny all small wireless facilities in the application.
(3) Tolling of Deadline. The 90-day deadline for action on a small wireless
facility permit application may be tolled if:
(a) The city receives applications from one or more applicants seeking
approval of permits for more than 30 small wireless facilities within a seven-day period. In such
case, the city may extend the deadline for all such applications by 30 days by informing the
affected applicants in writing of such extension.
(b) The applicant fails to submit all required documents or information
and the city provides written notice of incompleteness to the applicant within 30 days of receipt
of the application. Upon submission of additional documents or information, the city shall have
ten days to notify the applicant in writing of any still-missing information.
(c) The city and a small wireless facility applicant agree in writing to toll
the review period.
Note: Minn. Stat. 237.163, Subd. 3c.
90.39 PERMIT FEES.
(A) Fee schedule and fee allocation. The citys permit fee schedule shall be available
to the public and established in advance where reasonably possible. The permit fees shall be
designed to recover the citys actual costs incurred in managing the right-of-way and shall be
based on an allocation among all users of the right-of-way, including the city.
(B) Excavation permit fee. The city shall impose an excavation permit fee in an
amount sufficient to recover the following costs:
(1) The city management costs; and
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(2) Degradation costs, if applicable.
(C) Obstruction permit fee. The city shall impose an obstruction permit fee and shall
be in an amount sufficient to recover the city management costs.
(D) Small Wireless Facility Fee. The city shall impose a small wireless facility permit
fee in an amount sufficient to recover:
(1) management costs, and;
(2) city engineering, make-ready, and construction costs associated with
collocation of small wireless facilities.
(E) Payment of permit fees. No excavation permit or obstruction permit shall be
issued without payment of excavation or obstruction permit fees. The city may allow the
applicant to pay such fees within 30 days of billing, or on some other payment plan agreed to by
the Director at the Directors discretion.
(F) Non-refundable. Permit fees that were paid for a permit that the city has revoked
for a breach as stated in 90.49 are not refundable.
(G) Application to franchises. Unless otherwise agreed to in a franchise, management
costs may be charged separately from and in addition to the franchise fees imposed on a right-of-
way user in the franchise.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.40 RIGHT-OF-WAY PATCHING AND RESTORATION.
(A) Timing. The work to be done under the excavation permit, and the patching and
restoration of the right-of-way as required herein, must be completed within the dates specified
in the permit, increased by as many days as work could not be done because of circumstances
beyond the control of the permittee or when work was prohibited as unseasonal or unreasonable
under 90.43.
(B) Patch and restoration. The permittee must patch its own work. The city may
choose either to have the permittee restore the surface and subgrading portions of the right-of-
way or to restore the surface portion of the right-of-way itself.
(1) City restoration. If the city restores the surface portion of the right-of-way,
the permittee shall pay the costs thereof within 30 days of billing. If, following such restoration,
the pavement settles due to the permittees improper backfilling, the permittee shall pay to the
city, within 30 days of billing, all costs associated with correcting the defective work.
(2) Permittee restoration. If the permittee restores the right-of-way itself, it
shall at the time of application for an excavation permit, post a construction performance bond in
accordance with the provisions of Minn. Rules 7819.3000.
(3) Degradation fee in lieu of restoration. In lieu of right-of-way restoration, a
right-of-way user may elect to pay a degradation fee, however, the right-of-way user shall remain
responsible for replacing and compacting the subgrade and aggregate based material in the
excavation and the degradation fee shall not include the cost to accomplish these responsibilities.
(C) Standards. The permittee shall perform patching and restoration according to the
standards and with the materials specified by the city and shall comply with Minn. Rules
7819.1100.
(D) Duty to correct defects. The permittee shall correct defects in patching, restoration
performed by permittee or its agents. Upon notification from the city, the permittee shall correct
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all restoration work to the extent necessary, using the method required by the city. Unless
otherwise agreed to by the Director, said work shall be completed within 5 calendar days of
receipt of the notice from the city, not including days during which work cannot be done because
of circumstances constituting force majeure or days when work is prohibited as unseasonal or
unreasonable under 90.43.
(E) Failure to restore. If the permittee fails to restore the right-of-way in the manner
and to the condition required by the city, or fails to satisfactorily and timely complete all
restoration required by the city, the city shall notify the permittee in writing of the specific
alleged failure or failures and shall allow the permittee 10 days from receipt of said written
notice to cure said failure or failures, unless otherwise extended by the Director. In the event the
permittee fails to cure, the city may at its option perform the necessary work and permittee shall
pay to the city, within 30 days of billing, the cost of restoring the right-of-way. If permittee fails
to pay as required, the city may exercise its rights under the construction performance bond.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000) Penalty, see 90.99
90.41 JOINT APPLICATIONS.
(A) Joint application. Registrants may jointly apply for permits to excavate or
obstruct the right-of-way at the same place and time.
(B) Shared fees. Registrants who apply for permits for the same obstruction or
excavation, which the city does not perform, may share in the payment of the obstruction or
excavation permit fee. In order to obtain a joint permit, registrants must agree among themselves
as to the portion each will pay and indicate the same on their applications.
(C) With city projects. Registrants who join in a scheduled obstruction or excavation
performed by the city, whether or not it is a joint application by 2 or more registrants or a single
application, are not required to pay the excavation or obstruction and degradation portions of the
permit fee, but a permit would still be required.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.42 SUPPLEMENTARY APPLICATIONS.
(A) Limitation on area.

(1) A right-of-way permit is valid only for the area of the right-of-way
specified in the permit. No permittee may do any work outside the area specified in the permit,
except as provided herein.
(2) Any permittee which determines that an area greater than that specified in
the permit must be obstructed or excavated must before working in that greater area:
(a) Make application for a permit extension and pay any additional
fees required thereby; and
(b) Be granted a new permit or permit extension.
(B) Limitation on dates. A right-of-way permit is valid only for the dates specified in
the permit. No permittee may begin its work before the permit start date or, except as provided
herein, continue working after the end date. If a permittee does not finish the work by the permit
end date, it must apply for a new permit for the additional time it needs and receive the new
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permit or an extension of the old permit before working after the end date of the previous permit.
This supplementary application must be submitted before the permit end date.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.43 OTHER OBLIGATIONS.
(A) Compliance with other laws.

(1) Obtaining a right-of-way permit does not relieve permittee of its duty to
obtain all other necessary permits, licenses, and authority and to pay all fees required by the city
or other applicable rule, law, or regulation. A permittee shall comply with all requirements of
local, state, and federal laws, including but not limited to, M.S. 216D.01 through 216D.09, as
they may be amended from time to time, (Gopher One-Call Excavation Notice System) and
Minn. Rules 7560.
(2) A permittee shall perform all work in conformance with all applicable
codes and established rules and regulations, and is responsible for all work done in the right-of-
way pursuant to its permit, regardless of who does the work.
(B) Prohibited work. Except in an emergency, and with the approval of the city, no
right-of-way obstruction or excavation may be done when seasonally prohibited or when
conditions are unreasonable for such work.
(C) Interference with right-of-way. A permittee shall not so obstruct a right-of-way
that the natural free and clear passage of water through the gutters or other waterways shall be
interfered with, unless otherwise approved by the Director. Private vehicles of those doing work
in the right-of-way may not be parked within or next to a permit area, unless parked in
conformance with city parking regulations. The loading or unloading of trucks must be done
solely within the defined permit area unless specifically authorized by the permit.
(D) Trenchless excavation. As a condition of all applicable permits, permittees
employing trenchless excavation methods, including but not limited to horizontal directional
drilling, shall follow all requirements set forth in M.S. Ch. 216D, as it may be amended from
time to time, and Minn. Rules 7560, and shall require potholing or open cutting over existing
underground utilities before excavating, as determined by the Director. Trenchless excavations
deeper than 5 feet will not be permitted without written approval from the Director.
(E) Traffic control. A permittee shall implement traffic-control measures in the area
of the work and shall use traffic-control procedures in accordance with the most recent manuals
on uniform traffic-control, traffic-control devices, and traffic zone layouts published by the state.
90.44 DENIAL OR REVOCATION OF PERMIT.
(A) Reasons for Denial. The city may deny a permit for failure to meet the
requirements and conditions of this subchapter or if the city determines that the denial is
necessary to protect the health, safety, and welfare or when necessary to protect the right-of-way
and its current use.
(B) Procedural Requirements. The denial or revocation of a permit must be made in
writing and must document the basis for the denial. The city must notify the applicant or right-
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of-way user in writing within three business days of the decision to deny or revoke a permit. If
an application is denied, the right-of-way user may address the reasons for denial identified by
the city and resubmit its application. If the application is resubmitted within 30 days of receipt of
the notice of denial, no additional application fee shall be imposed. The city must approve or
deny the resubmitted application within 30 days after submission.
Note: Minn. Stat. 237.163, Subds. 4(c) and 5(f)
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.45 INSTALLATION REQUIREMENTS.
(A) The excavation, backfilling, patching, and restoration, and all other work
performed in the right-of-way shall be done in conformance with Minn. Rules 7819.1100 and
other applicable local requirements, in so far as they are not inconsistent with the M.S.
237.162 and 237.163, as they may be amended from time to time.
(B) Installation of service laterals shall be performed in accordance with Minn. Rules
Ch. 7560 and this subchapter. Service lateral installation is further subject to those requirements
and conditions set forth by the city in the applicable permits, city specifications, city design
criteria, and agreements referenced in 90.50.
90.46 INSPECTION.
(A) Notice of completion. When the work under any permit hereunder is completed,
the permittee shall furnish a completion certificate in accordance with Minn. Rules 7819.1300.
(B) Site inspection. The permittee shall make the work-site available to the city and to
all others as authorized by law for inspection at all reasonable times during the execution of and
upon completion of the work.
(C) Authority of Director.
(1) At the time of inspection, the Director may order the immediate cessation
of any work which poses a serious threat to the life, health, safety, or well-being of the public.
(2) The Director may issue an order to the permittee to correct any work that
does not conform to the terms of the permit or other applicable standards, conditions, or code. If
the work failure is a substantial breach within the meaning of M.S. 237.163, subd. 4(c), as it
may be amended from time to time, the order shall state that failure to correct the violation will
be cause for revocation of the permit after a specified period determined by the Director. The
permittee shall present proof to the Director that the violation has been corrected within the time
period set forth by the Director in the order. Such proof shall be provided no later than the next
business day following the day of completion. If such proof has not been presented within the
required time, the Director may revoke the permit pursuant to 90.49.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.47 WORK DONE WITHOUT A PERMIT.
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(A) Emergency situations.
(1) Each registrant shall immediately notify the Director of any event
regarding its facilities that the registrant considers to be an emergency. The registrant may
proceed to take whatever actions are necessary to respond to the emergency. Excavators
notification to Gopher State One-Call regarding an emergency situation does not fulfill this
requirement. Within 2 business days after the occurrence of the emergency the registrant shall
apply for the necessary permits, pay the fees associated therewith, and fulfill the rest of the
requirements necessary to bring itself into compliance with this subchapter for the actions it took
in response to the emergency.
(2) If the city becomes aware of an emergency regarding a registrants
facilities, the city will attempt to contact the local representative of each registrant affected, or
potentially affected, by the emergency. In any event, the city may take whatever action it deems
necessary to respond to the emergency, the cost of which shall be borne by the registrant whose
facilities occasioned the emergency.
(B) Non-emergency situations. Except in an emergency, any person who, without first
having obtained the necessary permit, obstructs or excavates a right-of-way, must subsequently
obtain a permit, pay an unauthorized work permit fee in an amount established from time to time
by the City Council, deposit with the city the fees necessary to correct any damage to the right-
of-way, and comply with all of the requirements of this subchapter.
90.48 SUPPLEMENTARY NOTIFICATION.
If the obstruction or excavation of the right-of-way begins later or ends sooner than the
date given on the permit, the permittee shall notify the city of the accurate information as soon as
this information is known.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.49 REVOCATION OF PERMITS.
(A) Substantial breach.

(1) The city reserves its right to revoke any right-of-way permit, without a fee
refund, if there is a substantial breach of the terms and conditions of any statute, ordinance, rule
or regulation, or any material condition of the permit.
(2) A substantial breach by permittee shall include, but shall not be limited to,
the following:
(a) The violation of any material provision of the right-of-way permit;
(b) An evasion or attempt to evade any material provision of the right-
of-way permit, or the perpetration or attempt to perpetrate any fraud or deceit upon the city or its
citizens;
(c) Any material misrepresentation of fact in the application for a
right-of-way permit;
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(d) The failure to complete the work in a timely manner; unless a
permit extension is obtained or unless the failure to complete work is due to reasons beyond the
permittees control; or
(e) The failure to correct, in a timely manner, work that does not
conform to a condition indicated on an order issued pursuant to 90.46(C)(2).
(B) Written notice of breach. If the city determines that the permittee has committed a
substantial breach of a term or condition of any statute, ordinance, rule, regulation, or any
condition of the permit, the city shall make a written demand upon the permittee to remedy such
violation. The demand shall state that continued violations may be cause for revocation of the
permit. A substantial breach, as stated above, will allow the city to place additional or revised
conditions on the permit to mitigate and remedy the breach.
(C) Response to notice of breach. Within a time established by the Director following
the permittees receipt of notification of the breach, the permittee shall provide the city with a
plan to cure the breach, acceptable to the city. The permittees failure to submit a timely and
acceptable plan, or the permittees failure to timely implement the approved plan, shall be cause
for immediate revocation of the permit. Further, the permittees failure to contact the city, or the
permittees failure to submit an acceptable plan, or the permittees failure to reasonably
implement the approved plan, may result in probation for up to 1 full year.
(D) Cause for probation. The city may establish a list of conditions of the permit, that
if breached, will be grounds to place the permittee on probation. The city shall not enforce a
probation program unless and until it has established such conditions, which it may amend from
time to time.
(E) Reimbursement of city costs. If a permit is revoked, the permittee shall also
reimburse the city for the citys reasonable costs, including restoration costs and the costs of
collection and reasonable attorneys fees incurred in connection with such revocation.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.50 MAPPING DATA.
(A) Information required. Each registrant and permittee shall provide mapping
information in a form required by the city in accordance with Minn. Rules 7819.4000 and
7819.4100. Within 90 days following completion of any work pursuant to a permit, the permittee
shall provide the Director accurate maps and drawings certifying the as-built location of all
equipment installed, owed, and maintained by the permittee. Such maps and drawings shall
include the horizontal and vertical location of all facilities and equipment and shall be provided
consistent with the citys electronic mapping system, when practical or as a condition imposed
by the Director. Failure to provide maps and drawings pursuant to this division (A) shall be
grounds for revoking the permit holders registration.
(B) Service laterals.
(1) All permits issued for the installation or repair of service laterals, other
than minor repairs as defined in Minn. Rules 7560.0150, subp. 2, shall require the permittees
use of appropriate means of establishing the horizontal locations of installed service laterals and
the service lateral vertical locations in those cases where the Director reasonably required it.
(2) Permittees or their subcontractors shall submit to the Director evidence
satisfactory to the Director of the installed service lateral locations. Compliance with this
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division (B) and with applicable Gopher State One-Call law and Minn. Rules governing service
laterals installed after December 31, 2005 shall be a condition of any city approval necessary for:
(a) Payments to contractors working on a public improvement project
including those under M.S. Ch. 429, as it may be amended from time to time; and
(b) City approval of performance under development agreements, or
other subdivision or site plan approval under M.S. Ch. 462, as it may be amended from time to
time. The Director shall reasonably determine the appropriate method of providing such
information to the city. Failure to provide prompt and accurate information on the service laterals
installed may result in the revocation of the permit issued for the work or for future permits to
the offending permittee or its subcontractors.
90.51 UNDERGROUNDING.
(A) Purpose.
(1) The purpose of this section is to promote the health, safety, and general
welfare of the public and is intended to foster:
(a) Safe travel over the right-of-way;
(b) Non-travel related safety around homes and buildings where
overhead feeds are connected; and
(c) Orderly development in the city. Location and relocation,
installation and reinstallation of facilities in the right-of-way must be made in accordance with
this division (A).
(2) This section intended to be enforced consistently with state and federal
law regulating right-of-way users, specifically including but not limited to M.S. 161.45,
237.162, 237.163, 301B.01, 222.37, 238.084, and 216B.36, and Minnesota Rules 7819.3100,
7819.5000, and 7819.5100, as they may be amended from time to time, and the
Telecommunications Act of 1996, 47 U.S.C. 253, to the extent the rules do not limit authority
otherwise available to cities.
(B) Undergrounding of facilities. Facilities newly installed, constructed, or otherwise
placed in the public right-of-way or in other public property held in common for public use must
be located and maintained underground pursuant to the terms and conditions of this subchapter
and in accordance with applicable construction standards, subject to the exceptions below.
Above-ground installation, construction, modification, or replacement of meters, gauges,
transformers, street lighting, pad mount switches, capacitor banks, re-closers, and service
connection pedestals shall be allowed. The requirements of this division (B) shall apply equally
outside of the corporate limits of the city coincident with city jurisdiction of platting, subdivision
regulations, or comprehensive planning as may now or in the future be allowed by law.
(C) Exceptions to undergrounding. The following exceptions to the strict application
of this section shall be allowed upon the conditions stated.
(1) Transmission lines. Above-ground installation, construction, or placement
of those facilities commonly referred to as high voltage transmission lines upon which a
conductors normal operating voltage equals or exceeds 23,000 volts (phase to phase) shall be
allowed only by prior approval of the Council; provided, however, that 60 days prior to
commencement of construction of such a project, the city shall be furnished notice of the
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proposed project and, upon request, the right-of-way user involved shall furnish all relevant
information regarding such project to the city. This provision shall not be construed as waiving
the requirements of any other ordinance or regulation of the city as the same may apply to any
such proposed project.
(2) Technical and economic feasibility. Above-ground installation,
construction, or placement of facilities shall be allowed in residential, commercial, and industrial
areas where the Council, following consideration and recommendation by the Planning
Commission, finds that:
(a) Underground placement would place an undue financial burden
upon the landowner, ratepayers, or right-of-way user or would deprive the landowner of the
preservation and enjoyment of substantial property rights; or
(b) Underground placement is impractical or not technically feasible
due to topographical, sub-soil, or other existing conditions which adversely affect underground
facilities placement.
(3) Temporary service. Above-ground installation, construction, or placement
of temporary service lines shall only be allowed:
(a) During new construction of any project for a period not to exceed
24 months;
(b) During an emergency in order to safeguard lives or property within
the city; and
(c) For a period of not more than 7 months when soil conditions make
excavation impractical.
(D) Undergrounding of permanent replacement, relocated, or reconstructed facilities.
(a) If the city finds that 1 or more of the purposes set forth in division
(A) above would be promoted, the city may require a permanent replacement, relocation, or
reconstruction of a facility of more than 300 feet to be located, and maintained underground,
with due regard for seasonal working conditions. For purposes of this subchapter,
RECONSTRUCTION means any substantial repair of or any improvement to existing facilities.
(b) Undergrounding may be required whether a replacement,
relocation, or reconstruction is initiated by the right-of-way user owning or operating the
facilities, or by the city in connection with:
1. The present or future use by the city or other local
government unit of the right-of-way or other public ground for a public project;
2. The public health or safety; or
3. The safety and convenience of travel over the right-of-way.
(E) Retirement of overhead facilities. The City Council may determine whether it is in
the public interest that all facilities within the city, or facilities within certain districts designated
by the city, be permanently placed and maintained underground by a date certain or target date,
independently of undergrounding required pursuant to division (B) above (new facilities) and
division (D) above (replacement facilities). The decision to underground must be preceded by a
public hearing, after published notice and written notice to the utilities affected (2 weeks
published: 30 days written.) At the hearing, the Council must consider items in division (G)
below and make findings. Undergrounding may not take place until City Council has, after
hearing and notice, adopted a plan containing items in division (H) below.
(F) Public hearings. A hearing must be open to the public and may be continued from
time to time. At each hearing any person interested must be given an opportunity to be heard.
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The subject of the public hearings shall be the issue of whether facilities in the right-of-way in
the city, or located within a certain district, shall all be located underground by a date certain.
Hearings are not necessary for the undergrounding required under divisions (B) and (D) above.
(G) Public hearing issues.
(1) The issues to be addressed at the public hearings include, but are not
limited to:
(a) The costs and benefits to the public of requiring the
undergrounding of all facilities in the right-of-way;
(b) The feasibility and cost of undergrounding all facilities by a date
certain as determined by the city and the affected utilities;
(c) The tariff requirements, procedure, and rate design for recovery or
intended recovery of incremental costs for undergrounding by the utilities from ratepayers within
the city; and
(d) Alternative financing options available if the city deems it in the
public interest to require undergrounding by a date certain and deems it appropriate to participate
in the cost otherwise borne by the ratepayers.
(2) Upon completion of the hearing or hearings, the City Council must make
written findings on whether it is in the public interest to establish a plan under which all facilities
will be underground, either city-wide or within districts designated by the city.
(H) Undergrounding plan.
(1) If the Council finds that it is in the public interest to underground all or
substantially all facilities in the public right-of-way or in non-right-of-way public ground, the
Council must establish a plan for such undergrounding.
(2) The plan for undergrounding must include at least the following elements:
(a) Timetable for the undergrounding;
(b) Designation of districts for the undergrounding unless the
undergrounding plan is city- wide;
(c) Exceptions to the undergrounding requirement and procedure for
establishing such exceptions;
(d) Procedures for the undergrounding process, including, but not
limited to, coordination with city projects and provisions to ensure compliance with
nondiscrimination requirements under the law;
(e) A financing plan for funding of the incremental costs if the city
determines that it will finance some of the undergrounding costs, and a determination and
verification of the claimed additional costs to underground incurred by the utility; and
(f) Penalties or other remedies for failure to comply with the
undergrounding.
(I) Facilities location.
(1) (a) In addition to complying with the requirements of M.S.
216D.01 through 216D.09, as they may be amended from to time (One-Call Excavation Notice
System), before the start date of any right-of-way excavation, each registrant who has facilities
located in the area to be excavated shall mark the horizontal placement of all said facilities.
(b) To the extent its records contain such information, each registrant
shall provide information regarding the approximate vertical location of its facilities to
excavators upon request.
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(c) Nothing in this division (I) is meant to limit the rights, duties, and
obligations of facility owners or excavators as set forth in M.S. 216D.01 through 216D.09, as
they may be amended from to time. Any right-of-way user whose facility is less than 20 inches
below a concrete or asphalt surface shall notify and work closely with the excavation contractor
in an effort to establish and mark the exact horizontal and vertical location of its facility and the
best procedure for excavation.
(2) All facilities shall be placed in appropriate portions of right-of-way so as
to cause minimum conflict with other underground facilities. When technically appropriate, all
utilities shall be installed, constructed, or placed within the same trench.
(J) Limitation of Space. To protect the health, safety, and welfare, or when necessary
to protect the right-of-way and its current use, the city shall have the power to prohibit or limit
the placement of new or additional facilities within the right-of-way. In making such decisions,
the city shall strive to the extent possible to accommodate all existing and potential users of the
right-of-way, but shall be guided primarily by considerations of the public interest, the publics
needs for particular utility service, the condition of the right-of-way, the time of year with
respect to essential utilities, the protection of existing facilities in the right-of-way, and future
city plans for public improvements and development projects which have been determined to be
in the public interest.
(K) Responsibility. All owners, platters, or developers are responsible for complying
with the requirements of this section, and prior to final approval of any plat or development plan,
shall submit to the Director written instruments from the appropriate right-of-way users showing
that all necessary arrangements with said users for installation of such facilities have been made.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.52 RELOCATION OF FACILITIES.
A right-of-way user shall promptly and at its own expense, with due regard for seasonal
working conditions, permanently remove and relocate its facilities in the right-of-way when it is
necessary to prevent interference, and not merely for the convenience of the city, in connection
with:
(A) A present or future city use of the right-of-way for a public project;
(B) The public health or safety; or
(C) The safety and convenience of travel over the right-of-way.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.53 INTERFERENCE BY OTHER FACILITIES.
When the city does work in the right-of-way in its governmental right-of-way
management function and finds it necessary to maintain, support, or move a registrants facilities
to carry out the work without damaging registrants facilities, the city shall notify the local
representative as early as is reasonably possible. The city costs associated therewith will be
billed to that registrant and must be paid within 30 days from the date of billing. Each registrant
shall be responsible for the cost of repairing any facilities in the right-of-way which it or its
facilities damages.
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(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.54 RIGHT-OF-WAY VACATION; RESERVATION OF RIGHT.
If the city vacates a right-of-way that contains the facilities of a registrant, the registrants
rights in the vacated right-of-way are governed by Minn. Rules 7819.3200.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.55 INDEMNIFICATION AND LIABILITY.
By registering with the city, or by accepting a permit under this subchapter, a registrant
or permittee agrees to defend and indemnify the city in accordance with the provisions of Minn.
Rules 7819.1250.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.56 ABANDONED AND UNUSABLE FACILITIES.
(A) Discontinued operations. A registrant who has determined to discontinue all or a

portion of its operations in the city must provide information satisfactory to the city that the
registrants obligations for its facilities in the right-of-way under this subchapter have been
lawfully assumed by another registrant.
(B) Removal. Any registrant who has abandoned facilities in any right-of-way shall
remove it from that right-of-way if required in conjunction with other right-of-way repair,
excavation, or construction.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.57 APPEAL.
(A) A right-of-way user that:

(1) Has been denied registration;
(2) Has been denied a permit;
(3) Has had permit revoked;
(4) Believes that the fees imposed are not in conformity with M.S. 237.163,
(5) Disputes a decision of the Director regarding the mapping data required by
90.50 may have the denial, revocation, decision, or fee imposition reviewed, upon written
request, go to the City Administrator.
(B) The City Council shall act on a timely written request at its next regularly
scheduled meeting. A decision by the City Council affirming the denial, revocation, or fee
imposition will be in writing and supported by written findings establishing the reasonableness
of the decision.
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90.58 RESERVATION OF REGULATORY AND POLICE POWERS.
A permittees or registrants rights are subject to the regulatory and police powers of the
city to adopt and enforce general ordinances necessary to protect the health, safety, and welfare
of the public.
(2013 Code, 7.17) (Ord. 570, passed 8-24-2000)
90.99 PENALTY.
(A) Every person violates a section, subdivision, paragraph, or provision of this

chapter when the person performs an act thereby prohibited or declared unlawful, or fails to act
when such failure is thereby prohibited or declared unlawful, and upon conviction thereof, shall
be punished as follows.
(1) Misdemeanor. Where the specific section, subdivision, paragraph, or
provision specifically makes violation a misdemeanor, the person shall be punished as for a
misdemeanor; where a violation is committed in a manner or under circumstances so as to
endanger or be likely to endanger any person or property, the person shall be punished as for a
misdemeanor; where the person stands convicted of violation of any provision of this chapter,
exclusive of violations relating to the standing or parking of an unattended vehicle, within the
immediate preceding 12-month period for the third or subsequent time, the person shall be
punished as for a misdemeanor.
(2) Petty misdemeanor. As to any violation not constituting a misdemeanor
under the provisions of division (A)(1) above, the person shall be punished as for a petty
misdemeanor.
(2013 Code, 7.99)
(B) Each day that any person continues in violation of 90.08 shall be a separate
offense, and punishable as such.
(2013 Code, 7.08)
(Ord. 1, passed 4-1-1978; Ord. 337, passed 7-23-1992; Ord. 570, passed 8-24-2000)
___________________________________
Attest:
_________________________,
City Clerk
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27
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ORDINANCE NO. 970
AN ORDINANCE OF THE CITY OF SHAKOPEE, MINNESOTA REPEALING

SECTIONS 50.15 THROUGH 50.99 OF THE SHAKOPEE CITY CODE RELATING TO
TELECOMMUNICATIONS PERMITS
_____________________________________________________________________
Section 1. Sections 50.15 through 50.99, inclusive, of the Shakopee City Code are repealed.
Section 2. Effective Date. This ordinance becomes effective from and after its passage and
publication.
day of October, 2017.
___________________________________
Attest:
_________________________,
City Clerk
Page 117 of 242

*4.D.2.

October 3, 2017
FROM: Steve Lillehaug, Public Works Director/City Engineer

TO: Mayor & Council Members
Subject:
Drainage and utility easement encroachment agreements.
1. Approve drainage and utility encroachment agreement for 1328 Ridge Court (PID
274210400).
2. Approve drainage and utility encroachment agreement for 1668 Friesian Street South
(PID 273901240).
3. Approve drainage and utility encroachment agreement for 1662 Friesian Street South
(PID 273901250).
Recommendation:
Approval of encroachment agreements.
Discussion:
Background
City Code 90.16, Encroachment in Easement Areas, indicates that "no trees, shrubs, bushes,
retaining walls, structures, hard surface areas, or other obstructions, with the exception of
shallow root plantings and garden fences, shall be placed within an easement area held by the
city, except if written permission has been granted by the city". Upon discovery of said
encroachments and determination that there are no expected detrimental effects, it has been
the city's practice to allow the continuance of the such (minor) encroachments; however, an
encroachment agreement has been the instrument to provide the proper
documentation by officially recording the encroachment with the county as part of the
property file.
Encroachments
The encroachment at 1328 Ridge Court consists of a structural retaining wall that was
constructed by the property owner and encroaches on the city's drainage and utility easement
adjacent to a managed storm water detention/treatment pond. This property exists as a single
Page 118 of 242

family home which was platted in 2012; the home was constructed in approximately 2013.
The encroachment is categorized as a minor encroachment that does not limit the use or
cause negative impacts within the easement. The agreement is necessary to document the
encroachment should the city require the temporary or permanent removal of the wall and
landscaping in the future, understanding that the removal and replacement costs would be
borne by the property owner.
The encroachments at 1662 and 1668 Ridge Court consist of a structural retaining wall and
steps that were jointly constructed by the property owners and encroach on the city's
drainage and utility easement in the area on the common property line between the parcels.
These properties exist as single family homes which were platted in 2005; the homes were
constructed in approximately 2012-13. It is categorized as a minor encroachment that does
not limit the use or cause negative impacts within the easement. The agreements are
necessary to document the encroachment should the city require the temporary or permanent
removal of the wall and landscaping in the future, understanding that the removal and
replacement costs would be borne by the property owners.
Budget Impact:
$100 has been provided by each property owner to pay for the recording and filing fees. No
further budget impacts.
ATTACHMENTS:
Encroachment Agreement - 1328 Ridge Ct

Encroachment Agreement - 1662 Friesian St
Encroachment Agreement - 1668 Friesian St
Page 119 of 242

Page 120 of 242
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Exhibit A
Page 124 of 242

Exhibit B
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Exhibit A
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Exhibit B
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Exhibit A
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Exhibit B
Page 137 of 242

7.A.

October 3, 2017
FROM: Kyle Sobota, Senior Planner

Subject:
Vacation of Certain Alleys and Right-of-Ways Within and Adjacent to the Minnesota
Correctional Facility
Approve Resolution No. 7936, a resolution approving the vacation of certain alleys and
rights-of-way within and adjacent to the MN Correctional Facility.
Recommendation:
Approve the resolution as presented.
Discussion:
Roger Behrens, representing the State of Minnesota has filed a vacation application
proposing the vacation of several street rights-of-way and alleys within and adjacent to the
Minnesota Correctional Facility.
The proposal cleans up the title for the property, as several of the areas impacted are already
developed as parking areas, or have other encroachments. Many of the alleys and streets
should have been vacated when the site was developed by the State in the mid 1980's (see
attached vacation sketches).
The proposed vacation involves the following streets and alleys:

Webster Street, south of Sixth Avenue
Cass Street, south of Sixth Avenue
Fifth Avenue, between Adams Street and Webster Street
Washington Street, between Fourth Avenue and Sixth Avenue
Fourth Avenue, between Adams Street and Webster Street
Alleys within blocks 5 and 6 of Koeper's Addition
Alleys within blocks 172 and 173 of the City of Shakopee plat.
Page 138 of 242

The State originally requested the vacation of an alley along Webster Street and Webster
Street north of Sixth Avenue. The city has existing and future utilities planned for this area.
The State of MN has withdrawn the request to vacate that specific area.
The Engineering Department, Shakopee Public Utilities, and other utility companies have
reviewed the request and recommend approval of the revised request, subject to the
dedication of a drainage and utility easement for the proposed Fourth Avenue vacation area
and the dedication of an easement for a possible future trail between Adams Street and Cass
Street. This would serve as a possible corridor for a trail to allow access between Riverview
Park and Holmes Park (see attached exhibit). In order for the connection to happen, an
easement would need to be granted by the owner of the school bus garage for a segment that
would be on the southerly undeveloped portion of their property.
Budget Impact:
N/A
ATTACHMENTS:
Proposed Vacation Exhibit

Engineering Department Memo
Proposed Sidewalk / Trail Easement Area
Resolution No. 7936
Page 139 of 242

CASS
ST.
NORTH
0 60 120
Cass Street Vacation Description:

A portion of Cass Street, as shown on the recorded plat of SHAKOPEE
DENOTES PORTION CITY, MINNESOTA, on file and of record in the office of the Register of
OF CASS STREET TO
Deeds of Scott County, Minnesota, is to be vacated and is described as
BE VACATED
follows:
That part of said Cass Street which lies southerly of the southerly right
Suite #1
6750 Stillwater Blvd. N. of way of Sixth Avenue and northerly of the south line of Section 1,
Stillwater, MN 55082
Phone 651.275.8969 Township 115, Range 23, Scott County, Minnesota.
Fax 651.275.8976
dan@
cssurvey
.net Being 15,760 sq.ft., more or less
SHEET
Exhibit ____ 1 OF 1
Depiction and Description of Cass Street Vacation PROJ. NO.

LE13101C
Page 140 of 242
0 60 120
NORTH
Webster Street Vacation Description:

A portion of Webster Street, as shown on the recorded plat of
DENOTES PORTION SHAKOPEE CITY, MINNESOTA, on file and of record in the office of the
OF WEBSTER STREET
Register of Deeds of Scott County, Minnesota, is to be vacated and is
TO BE VACATED
described as follows:
That part of said Webster Street which lies southerly of the southerly
Suite #1
6750 Stillwater Blvd. N.
right of way of Sixth Avenue and northerly of the south line of Section 1,
Phone 651.275.8969
Township 115, Range 23, Scott County, Minnesota.
Fax 651.275.8976
dan@
cssurvey
.net
Being 7,210 sq.ft., more or less
SHEET
Exhibit ____ 1 OF 1
Depiction and Description of Webster Street Vacation PROJ. NO.

LE13101C
Page 141 of 242
Street and Alley Vacation Description:
The following streets and alleys, as shown on the recorded plats of SHAKOPEE CITY,
MINNESOTA, and KOEPER'S ADDITION TO SHAKOPEE CITY, MINNESOTA, on file and of
record in the office of the Register of Deeds of Scott County, Minnesota, are to be vacated
and are described as follows:
The southerly half of Fourth Avenue lying westerly of the westerly line of Webster Street
and lying easterly of the easterly line of Adams Street
EXCEPT that part of Fourth Avenue lying westerly of the northerly extension of the
west line of Lot 10, Block 173, SHAKOPEE CITY, MINNESOTA and lying easterly of the
west line of Section 1, Township 115, Range 23
That part of Fourth Avenue lying westerly of the northerly extension of the west line of Lot
10, Block 173, SHAKOPEE CITY, MINNESOTA and lying easterly of the west line of Section
1, Township 115, Range 23
(SEE NOTE 1 BELOW)
That part of Fifth Avenue lying westerly of the westerly line of Webster Street and lying
easterly of the easterly line of Adams Street
That part of Washington Street lying southerly of the southerly line of Fourth Avenue and
northerly of the north line of Sixth Avenue
TOGETHER WITH
The alleys contained within Blocks 5 and 6, KOEPER'S ADDITION TO SHAKOPEE CITY,
MINNESOTA
The alleys contained within Blocks 172 and 173, SHAKOPEE CITY, MINNESOTA
Being 143,695 sq.ft., more or less
*NOTE 1: ALL THAT PORTION OF THE HEREINBEFORE DESCRIBED PORTION OF FOURTH

AVENUE LYING WESTERLY OF THE NORTHERLY EXTENSION OF THE WEST LINE OF LOT 10,
BLOCK 173 AND LYING EASTERLY OF THE WEST LINE OF SECTION 1 TO BE VACATED IS TO
ACCRUE TO THE PROPERTY LYING SOUTHERLY THEREOF BASED ON THE BOUNDARY
DESCRIPTION OF THE SOUTHERLY PARCEL EXTENDING TO THE NORTH LINE OF FOURTH
AVENUE.
*NOTE 2: THE CITY OF SHAKOPEE SHALL RETAIN AN EASEMENT FOR DRAINAGE AND
UTILITY PURPOSES OVER, UNDER, AND ACROSS THE HEREINBEFORE DESCRIBED PORTION OF
FOURTH STREET TO BE VACATED.
Suite #1
Phone 651.275.8969
Fax 651.275.8976
dan@
cssurvey
.net
SHEET
Exhibit ____ 2 OF 2
Description of Street and Alley Vacations PROJ. NO.

LE13101C
Page 142 of 242
UE
TH AVEN
FOUR
WEBS
TER S
T.
WASH
INGT
ON AVEN
UE
FIFTH
ST.
ADAM
UE
AVEN
FIFTH
S
ST. (C
UE
AVEN
FIFTH
.S.A.H
. NO.
WEBS
15)
TER S
T.
UE
AVEN
SIXTH
DENOTES PORTION OF FOURTH

DENOTES PORTION OF STREET TO BE VACATED WITH
STREETS AND ALLEYS AN EASEMENT FOR ACCESS
TO BE VACATED AND UTILITIES RETAINED BY
THE CITY OF SHAKOPEE NORTH
0 150 300
Suite #1
Phone 651.275.8969
Fax 651.275.8976
dan@
cssurvey
.net
SHEET
Exhibit ____ 1 OF 2
Depiction of Street and Alley Vacations PROJ. NO.

LE13101C
Page 143 of 242
City of Shakopee
Memorandum
TO: Kyle Sobota, Senior Planner
FROM: Ryan Halverson, Assistant City Engineer
SUBJECT: MN Department of Corrections - Vacation of Easement and Right-of-Way
PID: Lots between 4th Avenue to 6th Avenue and Adams Street to Webster Street; and
Cass Street and Webster Street right of way south of 6th Avenue.
CASELOG: 17046
SUDLEDGER: Not Applicable
DATE: August 28, 2017
The application indicates a request to review an application to vacate easements and right-of-way on the
lots between 4th Avenue to 6th Avenue and Adams Street to Webster Street; as well as right of way along
Cass Street and Webster Street south of 6th Avenue.
This review should be considered preliminary, as more comments will follow with additional submittals.
However, the engineering department offers the following comments at this time to the applicant and to
the planning department:
Engineering:
The City of Shakopee Engineering Department requests that the applicant either do a new plat for the
entire area north of 6th Avenue or a minor subdivision.
There are differences between City parcel database and what the applicant has depicted. Staff would
request that the applicant provide the owner/encumbrance reports to verify the existence of all
easements and lots as shown.
Staff recommends the vacation of unimproved Webster Street south of 6th Avenue.
Staff recommends the vacation of unimproved Cass Street south of 6th Avenue.
Staff recommends the vacation of unimproved Fifth Avenue from Adams Street to Webster Street.
Staff recommends the vacation of unimproved Washington Street from 4th Avenue to 6th Avenue.
C:\Program Files (x86)\neevia.com\docConverterPro\temp\NVDC\D4EA803C-5736-43E6-AE00-EFDBF85D0F16\Shakopee.1211.1.State_MN_VAC_Engineering_Comments.docx
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Staff recommends the vacation of alley easements contained within Blocks 5 and 6, KOEPERS
ADDITION.
Staff recommends the vacation of alley easements contained within Blocks 172 and 173, SHAKOPEE
CITY.
Staff does not support the vacation of street or alley along Webster Street. There are existing utilities
along this right-of-way corridor.
Staff does not support the vacation of half of 4th Avenue from Adams Street to Webster Street. Staff
would recommend vacating the entire right of way width of 4th Avenue from Adams Street to Webster
Street, with the condition that drainage and utility easement is provided the over the entire width of 4th
Avenue from Adams Street to Webster Street.
The City of Shakopee needs additional road right-of-way dedicated along Adams Street from 6th Avenue
to 5th Avenue. Please dedicate right-of-way to match the Roadway Easement Doc. No. 208651.
Recommendation
The public works department recommends conditional approval of the easement and right-of-way
vacation as subject to the items above being attached as conditions of the approval.
C:\Program Files (x86)\neevia.com\docConverterPro\temp\NVDC\D4EA803C-5736-43E6-AE00-EFDBF85D0F16\Shakopee.1211.1.State_MN_VAC_Engineering_Comments.docx
Page 145 of 242

Possible Sidewalk / Trail Connection
1 inch = 188 feet
Scott County GIS
September 1, 2017
Page 146 of 242
Map Powered by DataLink
from WSB & Associates
RESOLUTION NO. 7936
A RESOLUTION APPROVING A VACATION OF ALLEYS AND RIGHTS-OF-

WAY WITHIN AND ADJACENT TO THE MINNESOTA CORRECTIONAL
FACILITY - SHAKOPEE
WHEREAS, the State of MN, applicant and property owner, have made an
application proposing the vacation of alleys and rights-of-way within and adjacent to the
Minnesota Correctional Facility - Shakopee; and
WHEREAS, it has been made to appear to the Shakopee City Council that the
alleys and rights-of-way is no longer of public use or interest; and
WHEREAS, the proposed right-of-way and alleys to be vacated is identified within

the attached legal description and sketch (Exhibit A); and
WHEREAS, the Shakopee Planning Commission considered the request at its

meeting of September 7, 2017, and unanimously recommended approval with conditions
to the City Council; and
WHEREAS, a public hearing to consider the action to vacate the public alleys and
rights-of-way was held in the Council Chambers of the City Hall in the City of Shakopee
at 7:00 P.M. on the September 19th and October 3rd, 2017; and
WHEREAS, ten days published notice was provided by publication of the notice
in the SHAKOPEE VALLEY NEWS and posted notice was provided by posting such
notice on the bulletin board on the main floor of the Scott County Courthouse, the bulletin
board at the U.S. Post Office, the bulletin board at the Shakopee Public Library, and the
bulletin board in the Shakopee City Hall.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE

CITY OF SHAKOPEE, MINNESOTA,
1. It finds and determines that the vacation of the alleys and rights-of-way as identified
in Exhibit A is in the public interest.
BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY

OF SHAKOPEE, MINNESOTA, THAT:
Page 147 of 242

1. The State of MN provide a drainage and utility easement to the City over the
proposed vacation of the Fourth Avenue right-of-way.
2. The State of MN provide a sidewalk / trail easement to the City of Shakopee for
area within the existing Fourth Avenue Right-of-Way, between Adams Street and
Cass Street for a possible future trail.
After the adoption of the Resolution, the City Clerk shall file certified copies hereof with
the County Auditor and County Recorder of Scott County.
Adopted in the ___________ session of the City Council of the City of Shakopee,
Minnesota, held the _____ day of ____________________, 2017.
_____________________________
ATTEST:
______________________________
Lori Hensen, City Clerk
Page 148 of 242

10.A.

October 3, 2017
FROM: Michael Kerski, Director of Planning & Development

Subject:
Overview of tax increment financing and how it has been used in Shakopee.
Discussion on Tax Increment in Shakopee
Recommendation:
Discussion:
Shakopee has used tax increment financing since the 1970s for economic development,
redevelopment and infrastructure. Staff will provide an overview and Tom Denaway from
Springsted will also be available at the meeting to answer questions. Springsted is the city's
TIF consultant and runs financial models for the city and has also worked on most of our TIF
agreements.
Also are attached are two informational pieces prepared by the State on TIF.
Budget Impact:
ATTACHMENTS:
Presentation
House TIF memo
State explanation of TIF
Page 149 of 242

City Council Work Session
Tax Increment Financing Districts
Page 150 of 242

Tax Increment Financing (TIF)
Designed to help projects make up a shortfall in a
project that:
Creates jobs
Creates new investment in specific areas of the city
Used for improvements that would otherwise be paid for
through bonding or use of general fund dollars
Creates affordable housing
Page 151 of 242

A quick example of how TIF has worked
in Shakopee
Page 152 of 242

Site 1998
Total taxes $24,067
Page 153 of 242

Seagate commits in 1999
Invested $29.6 million in manufacturing facility
$4.6 million Economic Development TIF
Land purchase
Soil improvements
Road improvements
City collected $34,041 in city taxes during the TIF
Seagate collected approximately $5,000.000 in TIF
Page 154 of 242

Seagate 2017
Page 155 of 242

Seagate 2017

800 high paying high tech jobs
Research & Development hub
$114,000 in city taxes
$821,784 in total taxes
$22 million market value
Page 156 of 242

No Seagate
Total taxes $24,067
City share $6,000
Page 157 of 242

What are the TIF basics
Self financing recipient pays their full taxes that are
used to support the specific activity
Pay as you go program so no risk to city
Fixed term for capture, then new development added to
tax base
Page 158 of 242

Where does TIF come from?
Recipient pays the full property tax to the County
County cuts a check to the City
City pays a negotiated percentage to the Recipient
Typically happens twice per year
If no payment is made to the County, no payment is made to
the Recipient and typically they are now in default of the TIF
Agreement
Page 159 of 242

Types of TIF Districts
Page 160 of 242

TIF in Shakopee
First TIF District was created pre-1979 for Kmart
There have been 16 other Districts created since including:
Senior high-rise (Redevelopment - decertified in 1994)
Motel (Redevelopment decertified in 1997)
MEBCO (Economic decertified in 1998)
FMG (Imagine Print Solutions) (Economic decertified in 1999)
Seagate (Economic decertified in 2007)
Page 161 of 242

What can the funds be used for?
Public Improvements
Land Acquisition
Soil Correction
Site Preparation/Demolition
Relocation
Financing Fees/Capitalized Interest
Administrative Costs (10%)
Page 162 of 242

Public Improvement Costs Allowed
Streets and Roads
Utilities
Bridges and Interchanges
Parking
Sidewalks and walkways
Soft costs related to any of the above
Page 163 of 242

Public Improvement Costs Not Allowed
Public buildings such as a City Hall, Public Safety, Public
Works buildings
Culture and Recreation such as parks, community
centers, golf courses, etc.
Administration beyond 10% of TIF collections
Page 164 of 242

Active TIF in Shakopee
River City Center

25 Year Redevelopment TIF of $2,186,205
Comes due in 2024
Created 52 units of CDA-owned senior housing
Commercial/retail at street level
Payment is about $70.000 per year
City still controls the land
Page 165 of 242

SanMar
8 Year Economic Development TIF of $2,000,000 at 5% interest
Comes due in 2022
Attracted company here and added 150 FTE jobs, with 117 jobs at
wages no less than $12.00 per hour, and 33 jobs at wages no less
than $16.60 hour.
Investment in new taxable market value of $25.6M
Annual payment is $284,385 based on 90% of increment
Page 166 of 242

Trident
25 Year Affordable Housing TIF of $1,000,000
Comes due in 2039 but will likely be paid off in 2026
Created Senior Housing Community with 17 units
subsidized and investment of approx. $12,208,000
Annual payment is approx. $138,910 based on 90% of
generated TIF revenue
Page 167 of 242

RAHR
8 Year Economic Development TIF of $1,883,086 with no interest.
Comes due in 2025
Retained company here and generate 28 new full-time jobs with
average wage of no less than $14.50 per hour
Investment in new taxable market value of approx. $14.325M
Estimated 2018 annual payment is $209,770 based on 97% of
generated TIF revenue.
Page 168 of 242

Amazon
8 Year Economic Development TIF of $5,745,654
Investment in new taxable market value of approximately $55.0M
Created 2,000 new jobs
Comes due in 2025
Paying for road improvements in the area of $2,319,076 and
planned County Highway 83 improvements of $3,379,250
10% of new market growth from project was placed on tax rolls and
not captured as TIF. Immediate growth in tax base of $5.5M.
Page 169 of 242

Page 170 of 242
Public Infrastructure through TIF
Canterbury
Would build a $6,000,000 road that is shown in the
Comprehensive Plan connecting the community
Would contribute the Citys portion of the Countys
improvements to Highway 83 in 2020.
Without TIF, 20 year bonding of these requirements would
add approximately $44 to single family home taxes and
increase tax rate from 37.455 to 39.402%
Page 171 of 242

Questions & Comments
Page 172 of 242

HOUSE RESEARCH Short Subjects
Joel Michael Updated: June 2014
Tax Increment Financing

What is TIF? Tax increment financing (TIF) uses the increased property taxes that a new real
estate development generates to finance costs of the development. In
Minnesota, TIF is used for two basic purposes:
To induce or cause a development or redevelopment that otherwise would
not occure.g., to convince a developer to build an office building, retail,
industrial, or housing development that otherwise would not be constructed.
To do so, the increased property taxes are used to pay for costs (e.g., land
acquisition or site preparation) that the developer would normally pay.
To finance public infrastructure (streets, sewer, water, or parking facilities)
that are related to the development. In some cases, the developer would be
required to pay for this infrastructure through special assessments or other
charges. In other cases, all taxpayers would pay through general city taxes.
How does TIF When a new TIF district is created, the county auditor certifies (1) the current
work? net tax capacity (i.e., property tax base) of the TIF district and (2) the local
property tax rates. As the net tax capacity of the district increases, the property
taxes (i.e., the tax increment) paid by this increase in value is dedicated and
paid to the development authority. The tax increment is limited to the tax
derived from the certified tax rate. Increases in value that generate increment
may be caused by construction of the development or by general inflation in
property values. The authority uses the increment to pay qualifying costs (e.g.,
land acquisition, site preparation, and public infrastructure) that it has incurred
for the TIF project.
How is TIF used to There is a mismatch between when most TIF costs must be paidat the
pay upfront beginning of a developmentand when increments are receivedafter the
development costs? development is built and begins paying higher property taxes. Three basic
financing techniques are used to finance these upfront costs:
Bonds. The authority or municipality (city or county) may issue its bonds to
pay these upfront costs and use increment to pay the bonds back. Often,
extra bonds are issued to pay interest on the bonds (capitalizing interest)
until increments begin to be received.
Interfund loans. In some cases, the authority or city may advance money
from its own funds (e.g., a development fund or sewer and water fund) and
use the increments to reimburse the fund.
Pay-as-you-go financing. The developer may pay the costs with its own
funds. The increments, then, are used to reimburse the developer for these
costs. This type of developer financing is often called pay-as-you-go or
pay-go financing.
What governmental Minnesota authorizes development authorities to use TIF. These authorities are
units can use TIF? primarily housing and redevelopment authorities (HRAs), economic
Page 173 of 242

development authorities (EDAs), port authorities, and cities. In addition, the
municipality (usually the city) in which the district is located must approve the
TIF plan and some key TIF decisions. TIF uses the property taxes imposed by
all types of local governments. But the school district and county, the two other
major entities imposing property taxes, are generally limited to providing
comments to the development authority and city on proposed uses of TIF. The
state-imposed tax on commercial-industrial and seasonal-recreational properties
is not captured by TIF.
What is the but-for Before an authority may create a TIF district, it and the city must make but-for
test? findings that (1) the development would not occur without TIF assistance and
(2) that the market value of the TIF development will be higher (after
subtracting the value of the TIF assistance) than what would occur on the site, if
TIF were not used.
What types of TIF Minnesota allows several different types of TIF districts. The legal restrictions
districts may be on how long increments may be collected, the sites that qualify, and the
created? purposes for which increments may be used vary with the type of district.
District type Use of Increment Maximum
duration
Redevelopment Redevelop blighted areas 25 years
Renewal and Redevelop areas with obsolete uses, not 15 years
renovation meeting blight test
Economic Encourage manufacturing and other 8 years
development footloose industries
Housing Assist low- and moderate-income housing 25 years
Soils Clean up contaminated sites 20 years
Compact Redevelop commercial areas with more 25 years
development dense developments
How many TIF According to the 2014 report of the Office of State Auditor (OSA), there were
districts exist? 1,784 active TIF districts in 2012. The graph shows the relative shares by type
of district.
TIF Districts by Type in 2012

(1,784 districts)
Housing
(546)
Redevelopment
(866) Renewal (29)
Special Laws (8)

Soils (15)
Pre-1979 (21)
Economic Development
(299)
Source: 2014 Report of the State Auditor
For more information: Contact legislative analyst Joel Michael at 651-296-5057. Also see the House
Research website for more information on TIF at www.house.mn/hrd/issinfo/tifmain.aspx.
The Research Department of the Minnesota House of Representatives is a nonpartisan office providing legislative,
legal, and information services to the entire House.
House Research Department 600 State Office Building St. Paul, MN 55155 651-296-6753 www.house.mn/hrd/hrd.htm
Page 174 of 242

CHAPTER 12: ECONOMIC DEVELOPMENT AND SPECIAL PROGRAMS
12.01 TAX INCREMENT FINANCING

Tax increment financing (TIF) is a method of financing real estate development costs to promote
development, redevelopment, and housing in areas where it would not otherwise occur, as established
under Minn. Stat. 469.174 to 469.1799, often referred to as the TIF Act. TIF authorities such as
cities, city or county housing and redevelopment authorities, port authorities, economic development
authorities, or rural development financing authorities use TIF revenues to encourage developers to
invest in new projects. These projects include constructing buildings or other private improvements,
cleaning polluted areas, redeveloping areas that contain blight, or paying for public improvements such
as streets, sidewalks, sewer and water, and similar improvements.
The Office of the State Auditor provides a checklist for county officials in the Tax Increment Financing
County Guide. The checklist is not necessarily comprehensive and not every item is necessarily
statutorily required, but it highlights some of the most important tasks for a county when administering a
TIF district. Additionally, more information on TIF can be found on the Office of the State Auditors
website.
A glossary of TIF terms is available at the end of this section for reference.
There are many special rules and exceptions in TIF law. This section is an overview of TIF law as a
whole. Consult statute, your countys legal department, the State Auditors Office, or the Department of
Revenue for more specific information.
The TIF Concept
TIF finances development by capturing the incremental property taxes generated by the increased
value of new development. Without development, there is no increment to capture, but once there is
development, tax increment provides a revenue stream that can be used to finance a project directly or
reimburse qualifying expenditures.
TIF as an economic development tool is often debated where proponents argue their merits as
appropriate governmental activities in correcting market failures, while opponents object to the subsidies
being granted. Figures 12.01-1 through 12.01-3 illustrate different perspectives with regard to TIF.
Figure 12.01-1 shows a classic example illustrating the benefits of TIF. In this example, the value of the
property is on a trend to decline or stagnate over time without any intervention. The implementation of
TIF freezes the value for tax purposes, and the investments raise the value of the property, placing it on
a more positive long-term trend. The taxes associated with the increased value are captured to pay for
the investments, but other taxing districts benefit from the prevention of further tax base erosion and
additional tax base upon the termination of the district.
TAX INCREMENT FINANCING 12.01 - 1

UP TO DATE THROUGH 2017 SESSION
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Figure 12.01-1: Classic Example of TIF
TIF terminated
TIF activities induce an
Declining value increase in valuation
in blighted area
TIF plan is
V enacted Difference between actual value and
A
frozen value is the captured value
L
U
E Benefit to other taxing
jurisdictions
Continued decline in Original
value absent the use taxable
of TIF value
TIME
Figures 12.01-2 and 12.01-3 display more critical examples of the impact of TIF. Figure 12.01-2 is
based on the premise that the value would increase over time, with or without TIF activities, and the
freezing of the taxable value essentially takes value away from the taxable base of the taxing districts. In
this scenario, there is some benefit down the road after the TIF district terminates, but it must be
weighed against the cost of the lost tax base in the interim.
Figure 12.01-2: Critical Example of TIF
TIF terminated
TIF activities induce an Benefit to other
Increasing value, increase in valuation
no blight taxing jurisdictions
TIF plan is
V Captured value
enacted
A
L
U
E
Value hijacked from other
Value would continue Original
taxable taxing jurisdictions
to appreciate absent
the use of TIF value
TIME

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Figure 12.01-3 is the most critical view of TIF, illustrating an example where development would have
occurred without TIF, and therefore all of the captured value is a loss to the affected taxing districts and
there is no positive benefit associated with what amounts to a pure subsidy.
Figure 12.01-3: Most Critical Example of TIF
TIF terminated
Activities would have

Increasing value, happened without TIF
no blight
TIF plan is
V Captured value hijacked
enacted
A from other jurisdictions
L
U
E
Original Value hijacked from other
taxable taxing jurisdictions
value
TIME
Each of these scenarios has the potential to be true, ultimately making TIF a good tool only to the extent
that it is prudently and appropriately used. TIF might be best employed for redeveloping blighted areas
or developing property where the free market has failed to produce appropriate investment. Entities that
use TIF must understand that capturing the tax base to pay for development may prevent being available
to lower taxes for general purposes.
Typical Uses of TIF
TIF was created for the purpose of redeveloping urban areas with old or worn-out buildings in need of
replacement or rehabilitation, initiated as a tool to help with urban renewal. Its use has spread to other
purposes. TIF in Minnesota is generally used to:
Redevelop areas occupied with substandard buildings
Build housing for low-income and moderate-income families
Clean up pollution
Provide general economic development incentives
Finance public infrastructure, such as streets, sewer, water, sidewalks, and similar improvements
An Example of How TIF is Used

A developer is considering building an office building. The city would like to redevelop a site that
consists of three parcels of property (parcels A, B, and C). Parcel A is vacant and parcels B and C
contain substandard commercial buildings. Parcel D contains a building in good shape. Construction of
the office building will require demolition of the two buildings, installing new utilities (sewer and

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water), and closing an alley. The cost of acquiring the property, demolishing the substandard buildings,
and putting in the utility and alley improvements is $1.5 million. However, the developer could obtain a
comparable site elsewhere in the area for $500,000, including special assessments for utilities. Parcels
A, B, and C together have a tax capacity of $24,000 and pay $33,600 a year in property taxes at a
140.000% tax rate. If the developer builds the planned $5 million office building, the tax will rise to
$304,000 per year, an increase of $280,000.
To induce the developer to build on the site, the city designates a project area and creates a TIF district
that includes the development site. The district consists of parcels A, B, C, and D (illustrated below in
Figure 12.01-4). Parcel D must be included to permit the site to qualify as a redevelopment district under
state law. The city agrees with the developer to acquire the site, demolish the substandard buildings, and
put in the utility improvements and vacate the alley. The city, in turn, sells the site to developer for its
market value of $500,000. This is commonly called "writing down" the cost of the land. The city's $1.5
million cost is "written down" to $500,000. The city could also write it down to zero, effectively giving
the land to developer. The computation of the increment is shown in the Table 12.01-1 below.
Figure 12.01-4: Example TIF District
Parcel A
(vacant land)
Parcel B Parcel C Parcel D

(substandard building) (substandard building) (building in good condition)
Table 12.01-1: Example Computation of Tax Increment
Original Tax Post Development Captured Tax

Parcel
Capacity Tax Capacity Capacity
A $18,000 $224,000 $200,000
B $3,000 - -
C $3,000 - -
D $124,000 $124,000 $0
Total $148,000 $348,000 $200,000
Tax Rate 140.000% 140.000% 140.000%
Tax Increment $280,000

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Source of Financing
TIF districts capture the additional property taxes paid as a result of new development in the district to
pay for part of the development costs. With redevelopment or new construction, the market value of the
property and its property taxes typically rise. The tax revenue that is generated and collected on the new
development is not distributed as provided in general law to the county, school district, city or township,
and special taxing districts. The tax revenue is instead distributed to the TIF authority that created the
district.
The "tax increment or increment" for the district is determined by multiplying the original tax rate,
before the TIF district was established, by the captured retained net tax capacity. Increment roughly
equals the taxes paid by the captured tax capacity or the increase in taxes that occur as a result of the
development.
Creation of the Development District and TIF District
Development District
Before a TIF district can be created, geographic areas for the development district and the TIF district
must be created. A development district, also known as a project area, is an area within the corporate
limits of a city which has been designated and separately numbered by the governing body. In many
cases, development districts are defined as the geographic boundaries of the city and within a singular
development district, multiple TIF districts may exist. There are instances where there are separately
numbered development districts that coincide with TIF districts. A development district must be created
prior to the creation of the TIF district.
Tax Increment Financing District

The TIF district is defined as a contiguous or noncontiguous area within a development district, or
project area, from which some or all of the properties will have tax increment generated from the
captured retained net tax capacity. The tax increment financing plan should always include the legal
descriptions of all the properties that are contained within the plan, along with a map delineating the
boundaries. The county auditor should pay close attention to both of these descriptions in case they do
not match and the county will need to contact the TIF authority and require changes to one or both of
these items.
TIF Plan
A tax increment financing plan is a critical piece of information that details an entire project and guides
the activities that will take place. TIF projects must adhere to all requirements, expenditures,
improvements or other objectives listed within the plan.
TIF plans must contain the following information:1

1. Statement of objectives of an authority for a project
2. Statement of property within the project that the authority intends to acquire
1
Minn. Stat. 469.175, subd. 1.

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3. List of proposed development activities for the project, for which the authority has entered into an
agreement or designated a developer
4. Description of any other development likely to take place in the project and the date when they will
likely occur
5. Estimates of:
a. The cost of the project
b. The amount of bonds to be issued
c. The original net tax capacity of the property within the district
d. The captured net tax capacity of the district at completion
e. The duration of the district
6. Statements on the alternate estimates of the impact on other taxing jurisdictions
7. Description of satisfaction of the but-for findings, i.e. that development would not occur but-for
this TIF district (except for housing districts)
8. Identification of all parcels included in the district
TIF plans should also include:

1. Identification of the type of district
2. Selection of the fiscal disparities computation method
3. Description of the TIF plans conformity to the municipalitys plans for development or
redevelopment as a whole
4. Certification that no permits have been issued in the past 18 months
5. TIF plan budget
6. Minimum assessment agreements, if any
7. Cost of county road improvements, if any NOTE
If a TIF plan is later modified, the modification
Additional documentation to support any of the above statute may require the municipality to make all
information may also be included in the TIF plan, including required findings again. These findings must
also be supported by adequate documentation. 2
studies, analyses, reports, letters, and maps.
Additionally, there are other statutory requirements that a TIF district must adhere to, many of which
should have information included in the TIF plan. The following are some of those requirements:
Reporting Requirements
Four-year knockdown rule
Five-year expenditure limitations
Pooling restrictions
Excess increment rules
Administrative expense limits
Modification requirements
Developer agreement limitations
Notice and Opportunity to Comment on TIF Plan
Before a TIF plan becomes final, the TIF authority must provide the county auditor and the clerk of the
school board with the proposed plan for the district. The TIF authority must also provide the plan to
2

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each county commissioner who represents the area if the TIF district is a housing or redevelopment
district. In most cases, the TIF authority provides a copy of the proposed plan to the chair of the county
board, regardless of the type of district.
The county auditor and the school board clerk may be required to provide the TIF plan to the entire
county board and school board.
The county must have at least 30 days during which it can comment on the plans before the public
hearing. The TIF authority can request a waiver of the 30-day review period from the school and the
county, which can be granted upon written approval from the authorities.3
In many counties, the board of commissioners has not been active in commenting on proposed TIF
districts, in part because the TIF authority is not required to respond to those comments. Some boards,
however, with assistance from their county auditors, have closely examined proposed TIF districts and
provided comments about them. Comments surrounding potential districts have often raised the publics
concern about the proposed districts to an extent that the TIF authority either modifies components of
the TIF plan or reconsiders going forward with the creation of the district altogether. Ultimately, the
ability for counties to review the plans have proven helpful in detecting substantive or typographical
errors and provides the TIF authority the opportunity to correct the errors prior to the approval of the
district.
Following are several things that counties should pay special attention when reviewing a proposed TIF
plan:
County Road Costs

The county should examine the impact of the proposed development or redevelopment on county roads.
The county board may require the authority to pay all or a portion of the cost of county road
improvements out of tax increment revenues if the development will result in a substantial increase in
the use of the county roads and if the improvements to the road were not scheduled for reconstruction
within the five-year county capital improvement plan. If the county chooses to use increments to finance
the road improvements, it must notify the TIF authority within 45 days after receiving the TIF plan of
the estimated costs of the road improvements and a schedule for reconstruction and payment of the
costs.4
Development District and TIF District Boundary Line Determinations

The county auditor should verify that the parcel numbers, legal descriptions, and maps all coincide with
each other. If there are any variances between the three of them as indicated in the TIF plan and/or with
the county records as they pertain to the county records, the county should contact the TIF authority
immediately upon detection of the issues. The county auditor should make sure that the legal
descriptions and parcels identified to be within a TIF district are entirely within the district. If any
portion of the property is not included in the district, the entire parcel is excluded from the district. In
many cases, a subdivision or plat is planned to be filed. The subdivision or plat must be filed and the
parcel(s) created prior to the TIF districts final plan and request for certification received by the county.
3
Minn. Stat. 469.175, subd. 2 and 2a.
4
Minn. Stat. 469.175, subd. 1a.

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Identification of Value, Classification, Tax Capacity, and Minimum Assessment Agreements

The county auditor should review the values and rates used in the proposed TIF plan and makes sure that
the correct values are used when determining anticipated TIF revenues. The market value, tax capacity,
and local tax rates that are used as the base values for the district are dependent upon the date the county
auditor receives the request for certification of the final TIF district. If a request for certification is
expected to be received by the county auditor by June 30, the current payable years estimated market
value and local tax rate should be considered the base values and rate. If the request for certification is
expected to be received by the county auditor after June 30, the current assessment years estimated
market value and the following years local tax rate are considered to be the base value and rate.5
Examination of Permits
The TIF plan must certify that no building permits had been issued on any of the affected parcels for 18
months prior to the request for certification of the district. If permits have been issued on any of the
affected parcels, the improvement is not to be included within the retained portion of the TIF District.
Examination of any Assessment Agreements

In some TIF plans, a certification of a minimum market value or assessment agreement is included. The
minimum assessment agreement may be referred to in a development plan, which is generally recorded
with the county recorder. In any case, the county auditor should check with the assessor as to whether
the office had certified a minimum assessed value based upon the plan. If nothing has been provided to
the assessor, the county auditor should contact the TIF authority and question the validity of the
agreement.
Financial Analysis
The county auditor should review the assumptions and financial analysis sections of the TIF plan.
Particular sections requiring closer review include:
Projected tax increment dollars
Sharing of increment
Fiscal disparity election
Bonded debt
Percentage of NTC already in TIF in municipality & county in comparison to total
District Type and Duration

The county should verify that the projects intended plans and district types are agreeable. The county
should verify that the duration dates and planned decertification dates are within the statutory guidelines.
TIF authorities may indicate a decertification date/year that is less than the maximum amount of years to
run. In some instances, TIF plans assume a possible decertification date that is earlier than the maximum
but do not indicate that the district will definitely decertify upon that date. Table 12.01-2 below outlines
the district types, their durations, and their characteristics.
5

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Table 12.01-2: Limits and Characteristics of TIF Districts
Duration Limit
District Type (after receipt of Geographic Areas that Qualify Permitted Uses of Increments
first increment)
Manufacturing
Warehousing
R&D facilities
Telemarketing
Economic
8 years No restrictions Tourism in qualifying
Development
counties
Commercial developments
in small cities
Workforce housing projects
Housing for low- or moderate-
Housing 25 years No restrictions
income renters or homeowners
Hazardous
Parcels in a TIF district containing
Substance 25 years Site acquisition and cleanup
polluted sites and contiguous parcels
Sub-districts
70% occupied by buildings, 50% of
which are substandard Correction of conditions
Redevelopment 25 years
Certain rail yards justifying creating district
Tank facilities
70% occupied by buildings, 20% of which
Renewal and Correction of conditions
15 years are substandard and another 30% require
Renovation justifying creating district
renovation
Site contains pollution and cost of cleanup
Soils Condition 20 years exceeds lesser of $2/sq. ft. or the fair Site acquisition and cleanup
market value of the land
Compact
70% occupied by buildings classified as Correction of conditions
Development 25 years
3a C-I, renovation justifying creating district
District
Certification of New District or Modifications to Existing Plan
New District
After the 30-day period for the county to comment has passed and the TIF authority has held the
statutory public hearing and received approval of the TIF district, the request for certification of value
and local tax rate is sent to the county auditor.6 If the request is filed after June 30, the county auditor
cannot complete the certification until after the local tax rate for the next payable year is established.7
This will cause a delay in the certification of values and rates, and the district will not become an active
district by which increment will be collected until the payable year following the year from which rates
and values are certified.
6
Minn. Stat. 469.175, subd. 3, para. (a).
7

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When a TIF district is created, the county auditor certifies the current tax capacity of the properties in
the district as the TIF district's "original net tax capacity." The portion of the school rate attributable to
the general education levy is excluded from the certified original tax rate.8 A TIF district can overlap
many unique taxing areas so the county auditor may need to certify more than one set of rates.
When a district is certified, the TIF authority will ask the county auditor to complete two forms.
Samples of both are included on the following pages. One form is a certification request supplement
(Form 12.01-1) which is sent to the county with the final TIF plan and should be completed and sent
back to the TIF authority. The other form is the certification as to original net tax capacity and original
local tax rate for properties located in the TIF district (Form 12.01-2), and this form is completed in part
by both the TIF authority and the county auditor. One copy of this form should be kept by the county,
one should be sent back to the TIF authority, the original should be sent to the Department of Revenue.
Modification to an Existing TIF Plan

Modifications to an existing TIF plan can be made only after notice and discussion. Sound findings for
the modification must be presented and a public hearing must be held.
Any of following modifications may be made to an existing TIF plan:

Reduction or enlargement of the geographic area of the project or district
Increase in the amount of bond indebtedness to be incurred
A determination to capitalize interest on the debt, if not already determined
Increase in the portion of the captured net tax capacity to be retained by the authority
Increase in the estimated cost of the project
Designation of additional property to be acquired
If a TIF district is expanded, the local tax rates associated with the expansion at the time the county
receives the request for certification of the expansion or modification will also need to be certified and
applied toward those parcels in the expansion area.
A TIF authority cannot modify an original TIF plan with the intent to change the type of the district to
another type. Instead, a new plan and district will need to be adopted.9
Creation of a Hazardous Substance Sub-district
A TIF authority can establish a hazardous substance sub-district (HSS) within a TIF district by
certifying to the county auditor at the time a TIF plan or modification is adopted that a response action
plan for the removal or remedial actions has been approved by the Minnesota Pollution Control Agency.
The sub-district consists of the parcels designated as hazardous and any other parcels contiguous to
hazardous parcels.10
The original net tax capacity of hazardous substance sub-district is equal to the net tax capacity of the
sub-district minus the estimated costs of removal or remedial actions. After the sub-district meets the
8
9
10

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requirements laid out in the response action plan, the original net tax capacity is increased by the amount
it was reduced.11
11
Minn. Stat. 469.174, subd. 7, para. (b) and (c).

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Form 12.01-1: Sample Certification Request Supplement
Tax Increment Financing District

Certification Request Supplement
1. Municipality Name:
2. District Name:
3. New District District Expansion Hazardous Substance Sub-district
4. District Type:
a. Redevelopment
Maximum Duration: 25 years of tax increments.
b. Housing
c. Renewal and Renovation

d. Housing Replacement
Maximum Duration: 15 years of tax increments from each parcel.
e. Soils Condition
f. Economic Development
Maximum Duration: 8 years of tax increments
5. If the district is a redevelopment, housing, or hazardous substance sub-district, is the minimum market value tax
increment delay option elected?
Yes No
6. Does the district have extended duration limits provided by a special law?
Yes No If yes, law citation:
7. Does the district's plan provide for any sharing of captured net tax capacity with the local taxing districts?
Yes No
8. Does the district's plan provide for its captured net tax capacity to be reduced by the fiscal disparity contribution?
(Seven Metropolitan Counties and Taconite Tax Relief Area Counties Only).
Yes No
9. Date the district plan was approved by the Municipality: ________________________

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10. District contact person:
Name: Phone:
Address:
Signature: Date:
(Prepared By)
County Auditor Use Only
12. Certification Request Date:
13. Certification Date:
14. Original Value and Tax Rate Year: Taxes Payable

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Form 12.01-2: Sample Certification of Original Net Tax Capacity and Original Local Tax Rate
STATE OF MINNESOTA
STEWARTVILLE COUNTY
COUNTY AUDITORS CERTIFICATION

AS TO ORIGINAL NET TAX CAPACITY AND
ORIGINAL LOCAL TAX RATE FOR PROPERTIES
WITHIN THE TIF DISTRICT NO. 4-1
IN THE CITY OF STEWARTVILLE, MINNESOTA
I, the undersigned, being the duly qualified and acting County Auditor of Stewartville County, Minnesota (the
County), DO HEREBY CERTIFY to the City of Stewartville in said County (the City), pursuant to the provisions of
Minnesota Statues, Section 469.177, Subdivision 1, that the original net tax capacity of all taxable property within the tax
increment district designated as TIF District No. 4-1 (the District) of said City, as described in the Tax Increment
Financing Plan for the area approved by resolution of the City Council dated May 30, 2006, is 926 .
I also certify that such original net tax capacity is composed of the tax capacity of the tax capacity of each parcel of
taxable property within the District as determined by the assessment thereof in 2005 for taxes payable in 2006, this being the
tax capacity most recently certified by the State of Minnesota as of the date when this certification was requested.
I also certify pursuant to the provisions of Minnesota Statutes 469.177, Subdivision 1a, that the original local tax
rate that applies to the District is 100.956 , this being the local tax rate for taxes payable in 2006.
WITNESS my hand and the seal of the County this 30th day of May , 2006.
______________________________________
Stewartville County Auditor
(SEAL)
Citys record of request for certification date:

May 16, 2006.
Please indicate the identification Please indicate the Certification Request

Number assigned by the County: Date you placed on the Countys systems:
__________________________ _____________________________________
Actual Certification Date:
______________________________________

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Adjustments of Values and Rates
The original net tax capacity and other values and rates may be adjusted in certain cases. Because the
Legislature may change classification percentages and because of a TIF authoritys dependency on
minimum tax increment dollars to pay bonds, a mechanism is provided to adjust the original values and
rates as needed. Additionally, parcels that are subject to a form of value exclusion are also subject to
increases in the original value as exclusions are diminished or removed entirely.
The following are circumstances where the county auditor and county assessor must adjust the original
value or rate.
Changes to Classification
If a propertys classification changes under Minn. Stat. 273.13, creating a different assessment ratio,
the original net tax capacity of the TIF district in which
the property is located must be re-determined as if the
NOTE
property had originally been classified as its new
The determination of a classification change can be
classification after its use change.12 complicated by splits, combinations, new plats, or
other similar divisions where the change in
Any increase or decrease in net tax capacity as a result of classification may not be readily apparent.
changes to any law regarding classification or percent of
market value assessed for taxes must be applied proportionately to original net tax capacity and captured
net tax capacity of any TIF district in all of the following years. Changes for which this provision
applies include changes in class rates, changes in tier thresholds, and the elimination of a classification.13
This applies to all districts regardless of when they were created.
Changes in Geographic Area

If a TIF district is enlarged by a TIF plan modification, the net tax capacity of the added property should
be added to the original net tax capacity.
If there is a reduction in the geographic area of a TIF district, the original net tax capacity of the
property being removed from the district should be subtracted from the districts original net tax
capacity.
Changes in Exclusion Status

If a property no longer qualifies for the homestead market value exclusion, green acres, open space,
metropolitan agricultural preserve, or rural preserves programs, the increased net tax capacity is added to
the original net tax capacity of the TIF district.14
The law does not provide for the original net tax capacity to be increased when a property no longer
qualifies for This Old House, This Old Business, platted vacant land, disabled veterans, or mold or lead
reductions. In other words, if a parcel qualified for an exclusion other than the homestead market value
exclusion at the time the original net tax capacity was certified, and then lost its qualification for the
12
Minn. Stat. 469.177, subd. 1, para. (b).
13
14
Minn. Stat. 469.177, subd. 1, para. (d).

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exclusion, the increase from losing the exclusion should not be added to the original net tax capacity.
If a property begins to qualify for an exclusion, the amount of original net tax capacity of the property
which becomes excluded will be deducted from the original net tax capacity of the district.15 Properties
in the green acres, open space, metropolitan agricultural preserve, or rural preserve programs cannot be
included in TIF plans.16
The consequences of changes in exclusion status apply to all TIF districts regardless of when they were
created. Note that the exclusion has to apply to the base year in order to require an adjustment to the
original net tax capacity.
Please see the examples on the following two pages for illustrations of property gaining and losing the
homestead market value exclusion.
15
Minn. Stat. 469.177, subd. 1, para. (e) and subd. 1d.
16

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Example 1: Gaining the Homestead Market Value Exclusion
Original NTC Values

Original Class Current Class EMV Exclusion Amount TMV Class Rate ONTC
Parcel 1 Homestead Homestead $ 300,000 $ - $ 300,000 1.00% $ 3,000
Before Exclusion
Parcel 2 Homestead Homestead $ 300,000 $ - $ 300,000 1.00% $ 3,000

Parcel 3 Non-Homestead Homestead $ 100,000 $ - $ 100,000 1.00% $ 1,000
Parcel 6 Homestead Non-Homestead $ 100,000 $ - $ 100,000 1.25% $ 1,250
Total $ 1,000,000 $ - $ 1,000,000 $ 10,250
Decrease in ONTC
Parcel 1 Homestead Homestead $ 300,000 $ 10,240 $ 289,760 1.00% $ 2,898 $ 102
After Exclusion
Parcel 2 Homestead Homestead $ 300,000 $ 10,240 $ 289,760 1.00% $ 2,898 $ 102

Parcel 3 Non-Homestead Homestead $ 100,000 $ 28,240 $ 71,760 1.00% $ 718 $ 282
Parcel 6 Homestead Non-Homestead $ 100,000 $ - $ 100,000 1.25% $ 1,250 $ -
Total $ 1,000,000 $ 105,200 $ 894,800 $ 9,198 $ 1,052
Parcels 1 & 2
When the exclusion is applied to the ONTC values for these parcels, the amount of ONTC attributed to the exclusion will be subtracted from the ONTC. In this
case, the ONTC column from the after exclusion section was subtracted from the ONTC column from the before exclusion section to arrive at the amount the
ONTC should be reduced due to the exclusion.
Parcels 3-5
The parcels would now qualify for the homestead market value exclusion. The exclusion should be applied to the ONTC values for these parcels and the amount
of ONTC attributed to the exclusion should be subtracted from the ONTC. In this case, the ONTC column from the after exclusion section was subtracted from
the ONTC column from the before exclusion section to arrive at the amount the ONTC should be reduced due to the exclusion.
Parcel 6
Even though this parcel would have qualified for the exclusion at the time the district was certified, it is now classified as non-homestead and would not receive
the exclusion. The ONTC does not need to be adjusted.

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Example 2: Losing the Homestead Market Value Exclusion
Original NTC Values

Original Class Current Class EMV Exclusion Amount TMV Class Rate ONTC
Parcel 1 Homestead Homestead $ 300,000 $ 10,240 $ 289,760 1.00% $ 2,898
With Exclusion
Parcel 2 Homestead Homestead $ 300,000 $ 10,240 $ 289,760 1.00% $ 2,898

Parcel 3 Non-Homestead Non-Homestead $ 100,000 $ - $ 100,000 1.25% $ 1,250
Total $ 1,000,000 $ 20,480 $ 979,520 $ 10,796
Decrease in ONTC
Parcel 1 Homestead Homestead $ 300,000 $ - $ 300,000 1.00% $ 3,000 $ 102
Without Exclusion
Parcel 2 Homestead Homestead $ 300,000 $ - $ 300,000 1.00% $ 3,000 $ 102

Parcel 3 Non-Homestead Non-Homestead $ 100,000 $ - $ 100,000 1.25% $ 1,250 $ -
Total $ 1,000,000 $ - $ 1,000,000 $ 11,000 $ 204
Parcels 1 & 2
When the exclusion is removed from these parcels, the amount of ONTC increase attributed to the exclusions removal will be added to the ONTC. In this case,
the ONTC column in the with exclusion section should be subtracted from the ONTC column in the without exclusion section to arrive at the amount the ONTC
should increase.
Parcels3-6
These parcels did not change classification (therefore, not eligible for the homestead market value exclusion). The ONTC does not need to be adjusted.

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Exempt to Taxable
When a property changes classification from exempt to taxable, the original net tax capacity must be re-
determined by adding the most recently assessed net tax capacity of the property.
If improvements are made to an exempt property after the municipality approves the TIF district and
before the property becomes taxable, the assessor must
value the improvements separately, and the auditor must NOTE
exclude the value of the improvements when adding the Counties should be attentive to ownership changes
net tax capacity of the parcel to the original net tax as the process can get complicated if a parcel
capacity of the district. becomes partially taxable, if the portion of the
property that is exempt changes from one year to the
next, or if the property changes from taxable to
If substantial improvements are made to a parcel after exempt and back to taxable all within the same year.
certification of the TIF district, and if the parcel becomes
exempt as a result the TIF authority acquiring the property through forfeiture, foreclosure, or a similar
lease or revenue agreement, the new base value if the property again becomes taxable is the net tax
capacity before the property became exempt.17
Taxable to Exempt
If a taxable property in a TIF district becomes exempt, the original net tax capacity of the property must
be subtracted from the original net tax capacity of the district.18
Ordered and Voluntary Adjustments

If the net tax capacity of property located in a TIF district is reduced because of a court-ordered
abatement, stipulation agreement, voluntary abatements from the assessor or auditor, or order by the
Department of Revenue, the county auditory must apply the reduction to the TIF district. If the property
has not been improved since the date of certification of the TIF district, the reduction is applied to the
original net tax capacity. If the abatement relates to improvements made after the date of certification,
the reduction is applied to the captured net tax capacity.19
Substandard Buildings
If a parcel contained a substandard building that was removed, and the TIF authority chooses to treat the
parcel as having been occupied by a substandard building, the auditor must adjust the original net tax
capacity to equal to the greater of: 1) the current net tax capacity of the parcel or 2) the value of the
parcel for the year that the building was removed, using the current class rates.20
Qualified Disaster Areas

For qualified disaster areas in TIF districts, the original net tax capacity must be adjusted for the loss of
value for any building that suffered substantial damage. Adjustments may be made for taxes payable in
the first calendar year beginning at least four months after the date of the disaster determination.21
17
Minn. Stat. 469.177, subd. 1, para. (c).
18
Minn. Stat. 469.177, subd. 1, para. (e).
19
20
Minn. Stat. 469.177, subd. 1, para. (f).
21
Minn. Stat. 469.177, subd. 1, para. (g), and subd. 1c.

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Limitations of TIF
Increment vs. Full Taxes

The increment does not always equal the full taxes paid from the captured value. The original tax rate
limits increment to the taxes generated by the tax rates in effect when the district was created. So if the
local governments increase their tax rates, the increased rates do not yield more increment.
Furthermore, in the metropolitan area and in the taconite tax relief area, increment may be reduced by
the fiscal disparities contribution for the district's properties if the city chooses that option.
Factors Influencing Increments

Increments may be attributed to:
New construction
Improvements
Overall inflation in property values unrelated to development
Market effects attributable to the TIF development
Market effects that are unrelated to the TIF development
Using TIF as a Financing Method

Development costs must often be paid up-front, but the increased property taxes, or increments, are not
paid until later and only in modest amounts, relative to the development costs, spread over many years.
This creates an imbalance between costs and revenues.
Traditionally, TIF districts overcame this mismatch by issuing bonds. The bonds help pay for
development costs and bond interest, until increments are receive, called capitalizing interest. Bond
reforms in 1986, however, took away many of the incentives for financing development with bonds.
Often, since 1986, developers are expected to pay the costs and be reimbursed as increments become
available. This approach shifts the capitalized interest costs to developers. In some cases if possible, the
TIF authority absorbs the cost by advancing its money (from another city or fund) until it can be
reimbursed with the increments.
Local Governments and TIF
Different types of governmental units play different roles with TIF law.
Development Authorities
Development authorities, such as housing and redevelopment authorities, makes nearly all important TIF
decisions including deciding whether to use TIF, determining how it will be used, adopting TIF plans,
and so on. Development authorities also implement TIF decisions, entering development agreements,
contracting for TIF work, and so forth.
Municipalities
The municipality, usually a city, must approve some of the TIF decisions initially made by the
development authority. In a few instances, the municipality is charged with making direct TIF findings

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or decisions. In many cases, the municipality controls the development authority or is the development
authority.
Counties
The county is responsible for administering much of the TIF law that relates to the collection and
distribution of increments. Besides that, the county's role is limited to making advisory comments on
major TIF decisions made by the development authority.
School Districts
The role of school districts in TIF is largely limited to making advisory comments on major TIF
decisions made by the development authority.
Counties and TIF
Counties have fairly limited roles in making TIF decisions, but they are responsible for much of the
administration of TIF law.
County powers and responsibilities consist of three components:

1. Making comments on proposed TIF plans and major amendments
2. Charging for county road costs that are stimulated by the TIF development
3. Administering the collection and distribution of TIF revenues for the authority
TIF Plan
Before approving a TIF district, the TIF authority must notify the county and provide a copy of the
proposed TIF plan and an estimate of the impact on the county. If the county disagrees with the TIF
proposal, its only power is to persuade the authority to abandon or modify its plans. It cannot veto or
delay adoption of the plan.22
Road Costs
The county may charge the TIF authority for county road costs if both of the following conditions occur:
1. The TIF district will, by the countys judgment, substantially increase the use of county roads
requiring construction, improvements, or other costs
2. There is no construction for improvements to the road scheduled within five years in the county plan
After receiving the TIF plan, the county has 45 days to submit the road costs to the TIF authority. The
authority is required to add the improvements to the TIF plan. Since the TIF plan can be approved
within 30 days and road costs may be submitted after 45 days, this may require a plan amendment.23
If the TIF authority is concerned about covering the costs, the authority and county can negotiate an
agreement to permit financing. If they cannot agree, the dispute must be submitted to binding
arbitration.24
22
23
24
Minn. Stat. 469.1762.

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Administering TIF
Although counties have a very limited decision making role in TIF, county officials have a substantial
role in administering TIF.
Many of the tasks that county officials must perform are outlined in Minn. Stat. 469.176 and 469.177.
County auditors must:

Certify and maintain an ongoing record of the original tax capacity of the TIF district
Calculate the captured tax capacity
Notify the Department of Education of distributions of excess increments and takes to school
districts
Decertify districts at the end of their legal duration limits, including enforcing the four-year and five-
year knock-out rules
County treasurers must:

Determine and collect the increment for the district
Distribute increment to the TIF authority
Distribute excess increments and taxes to the jurisdictions
County assessors may have to certify assessment agreements, unless the city assessor is responsible for
assessing the property.
The county may require the TIF authority to pay administrative costs. These costs are not subject to the
percentage limitations on administration expenses. Increments from the district are generally used for
this purpose.
Four-Year Knock-Down Rule
If no qualifying activity has occurred on a parcel located in a TIF district in accordance with the TIF
plan after four years from the date of certification of the original net tax capacity, no additional tax
increment can be collected from that parcel. The original net tax capacity of the parcel should be
excluded from the original net tax capacity of the tax increment financing district. Qualifying activity
includes demolition, rehabilitation, or renovation of property or other site preparation such as improving
a street adjacent to a parcel. Qualifying activity does not include installation of utility service such as
sewer or water systems.
If the TIF authority or the owner of the parcel subsequently commences qualifying activity, the county
auditor must certify the net tax capacity value as most recently certified by the department of revenue
and add it back to the original net tax capacity of the TIF district. The TIF authority must submit
evidence of qualifying activity occurring on a parcel to the county auditor by February 1 of the fifth year
after the year in which the parcel was certified as included in the district.25
25

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This provision applies to each parcel individually rather than the TIF district as a whole. Qualifying
activity must be made on each parcel, not just within the whole district, in accordance with the TIF plan
within four years after certification of the TIF district.
The county auditor is responsible for enforcing the four-year knock-down rule. Because the qualifying
activity is outlined in the TIF plan, the county auditor should review the TIF plan and the qualifying
activity documentation to see if the two are consistent and should require information from the authority
that is sufficient to make this evaluation.
For districts which were certified on or after January 1, 2005, and before April 20, 2009, this
four-year knock-down rule is deemed to end on December 31, 2016. 26
Five-Year Rule
The five-year rule essentially requires development activity for a TIF district to be completed within a
five-year period beginning with the date of the certification of the districts original tax capacity. The
period ends five years and one day after this date. After this five-year period has expired, increments
may only be spent to pay off obligations that were incurred to fund work done during the five-year
period.27
Development activity includes acquisition of property, clearing of land, site preparation, soils correction,
removal of hazardous waste or pollution, installation of utilities, construction of public or private
improvements, and other similar activities.28
When these obligations are paid or enough money has been collected to pay them, the county auditor
will decertify the district.29
The five-year rule only applies to districts where the request for certification was made after April 30,
1990, which is the effective date of the statute creating the rule.
After the Five-Year Period

Costs of development activity may have been financed (through bonds, for example) and increments
may be used after the five-year period.
Often called the six-year rule, beginning in the sixth year after the certification of the district, increments
may be spent for the following reasons:
1. To pay bonds that were issued during the five-year period to fund development activity within the
five-year period
2. To pay binding contracts with a third party for activities performed during the five-year period
3. To reimburse the costs of the developer or owner if costs were incurred during the five-year period
4. To pay credit enhanced bonds for which revenues from tax increments were pledged
26
27
28
29

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5. To pay the amounts outlined in the TIF plan for certain housing projects and in biotechnology and
health sciences industry zones
6. To defease the bonds (set aside money in a dedicated account to pay future obligations) in order to
decertify the district
Once all outstanding bonds and obligations have been paid, the district must be decertified.30
The five- and six-year rules were created to prevent development authorities from holding onto surplus
tax increments rather than decertifying the district before its maximum duration limits.
For a redevelopment district or a renewal and renovation district certified after June 30, 2003,
and before April 20, 2009, the five-year period is extended to ten years after the districts
original certification. This extension was provided primarily to accommodate delays in
development activities due to unanticipated economic circumstances. 31
TIF Pooling
TIF pooling refers to the use of tax increments for activities located outside of the boundaries of the
district from which they were collected. Minnesota law permits increments to be "pooled" or spent
outside of the district on other activities. The amount that may be pooled is, however, subject to
percentage limits.
Not all districts have pooling authority. The authority to pool increments depends upon when the TIF
district was created and the type of TIF district. It is useful to distinguish pooling authority based are
four "eras" when different TIF pooling laws were in effect:
1. Pre-1979 districts: pooling authority unclear. Before enactment of the 1979 TIF Act, Minnesota
had several separate laws authorizing TIF. None of these laws explicitly allowed "pooling." The
statutory terminology generally treated the areas in which the increment was to be collected and
spent interchangeably. However, some cities and their advisors concluded, especially in light of later
explicit TIF pooling law, that pooling was permitted and acted accordingly.
2. 1979-1982 districts: no pooling. The 1979 TIF Act's language did not allow pooling. The TIF plan
was required to provide for improvement of the district, or the area certified by the county auditor
for the collection of increment. Increments were required to be spent in accordance with the TIF
plan. A few lawyers disputed this view and advised cities that they could pool increments. As a
result, several cities pooled increments during this period. Later legislation authorized that pooling,
but prohibited future pooling or financing of new activities in these districts.32
3. 1982-1990 districts: unlimited pooling. The 1982 Legislature explicitly authorized TIF pooling and
established a distinction between the TIF district and the project area. The law imposed no limit on
the amount or percentage of increments that could be pooled.
4. Post-1990: limited pooling. The 1990 Legislature imposed percentage limits on the amount of
increment that may be pooled. Pooling is permitted regardless of when the TIF district was certified.
30
Minn. Stat. 469.1763, subd. 4, para. (a) and (b).
31
Minn. Stat. 469.1763, subd. 3, para. c.
32
Minn. Stat. 469.1764. (**repealed)

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Now, 25% of tax increments collected in a TIF district may be used outside the boundaries of the district
but within the boundaries of the project area as defined in the TIF plan.33 Pooling may also be used to
pay off obligations regardless of percentage limits for districts for which the request for certification was
made before August 1, 2001.34
In 2011, a special pooling rule was created for housing projects, allowing for a greater percentage of
increments to be spent outside of the district. This special rule expires December 31, 2016.35
Waiving of Increment
A TIF authority may wish to waive or decline to receive an increment payment during the early years of
the district, when only a small amount of increment may be generated, in an attempt to extend the
maximum duration limit of the district. However, any action to waive or decline to receive an increment
payment has no effect on the duration limit. The authority is considered to have received an increment
regardless of whether the increment is paid to the authority.36
This provision only applies to economic development, renewal and renovation, and soils condition
districts with certification requests dates after June 30, 2000. The duration limits of these districts may
be affected by waiving or declining increment if their initial certification request was on or before June
30, 2000. The duration limits of certain housing or redevelopment districts with certification request
dates after May 31, 1993 may also be affected by waiving or declining an increment.
For many economic development districts, however, statutory duration limits are often measured from
the date of the approval of the TIF plan rather than the receipt of the first increments so waiving or
declining increment will have no effect on a districts maximum duration. Furthermore, the only way to
delay receiving increment from housing or redevelopment districts or hazardous substance sub-districts
and affect the duration limits of these districts is to have included a provision in the TIF plan. The ability
to include such a provision in a TIF plan was repealed effective for districts with certification request
dates after July 31, 2001.
Limitations on Use of Increment
Minnesota law generally prohibits local governments from using increments for general government
purposes. For example, increments generally cannot be used to pay for providing police and fire
protection, road maintenance, or similar operating costs. Increments may only be used for a limited set
of project costs that are defined under the development authority enabling laws.37 TIF law also contains
specific prohibitions intended to prevent use of increments for general government purposes, even if
they qualify under the authority law as project costs.
33
34
35
Minn. Stat. 469.1763, subd. 2, para. (d) and (f).
36
Minn. Stat. 469.176, subd. 1b, para. (c).
37

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TIF captures the taxes imposed by all of the levels of government, including city/township, county,
school district, and special taxing districts. Cities and development authorities, however, have nearly
total control over TIF. If cities were allowed to fund their general operations with increments, costs may
be shifted towards school district and county taxpayers located outside the city. Therefore, the law limits
use of TIF for general government purposes.
Public Improvements
TIF is frequently used for public improvements, such as sewer, water, roads, sidewalks, and similar
improvements. In many cases, these improvements are directly related to or part of the real estate
developments that generate the tax increments, but there is no explicit requirement that these
improvements relate to the development generating the increments or be located within the TIF district.
Increments cannot be used to finance the construction of government buildings. This prohibition applies
to virtually any type of governmental unit, whether local, state, or federal.38
Excess Increments
Generally, excess increment refers to the any additional increment collected from a district which
exceeds the authorized expenditures of the increment under the TIF plan. The excess increment rules
help ensure that overlapping taxing districts, such as the county or a school district, share in the taxes
generated by the TIF district that are not needed to fund the TIF plan.
Note that the excess increments and excess taxes refer to different things. Excess taxes, sometimes
called excess TIF, are the additional taxes collected due to a tax rate greater than the certified original
tax rate.
Calculating Excess Increments

The amount of excess increments in a district can be calculated in the following steps:39
1. Determine the total amount of increments collected from the district since its certification. This
includes developer repayments of amounts funded with increments, investment income earned on
increments, and so forth
2. Subtract any amount of excess increments that were distributed in a prior year
3. Subtract the total amount of costs authorized by the TIF plan to be paid with increments
4. Add the amount of authorized costs that were paid from non-increment revenues. For example, if
part of the authorized costs were paid with a federal or state grant, then increments are not needed to
pay these costs. This adjustment does not apply to revenues like advances or interfund loans that are
to be repaid with increments.
5. Add the amount of non-increment revenues that have been received and are dedicated to paying
authorized costs but have not yet been used
6. Add the amount of principal and interest payments due on bonds in future years that have not been
prepaid
7. Add the amount of transfers of increment made to reduce deficits in other districts
38
Minn. Stat. 469.176, subd. 4g, para. (b).
39

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The resulting amount is the excess increment for the district.
The TIF authority must determine whether the district has excess increments at the end of each calendar
year. This determination is made based on revenues actually received by year end.40
Use of Excess Increments

Excess increments must be used only for the following purposes:41
Prepaying or discharging any outstanding bonds. This can be done directly or by funding an escrow
account for the bonds
Distribution to the city, county, and school district in proportion to their respective tax rates. The
county auditor makes these distributions
These are the only permitted use of excess increments. If all of the contractual obligations of the district
have been satisfied, the authority can also decertify the TIF district early. For districts certified before
1990, TIF authorities may amend their TIF plan to authorize new uses of increments. This would allow
only future increments to be used for these new purposes, since past increments would still be
considered to be excess increments.
Reporting
Within 30 days after making a distribution of excess tax increment to a school district, the county
auditor must report to the Department of Education the amount of excess tax increment the school
district received. This is intended to allow re-computing of the schools state aid.42
Deficits
The TIF Act contains four special provisions for dealing with deficits in a TIF district.
Special Deficit Authority

Special authority for handling deficits under Minn. Stat. 469.1792 applies only to an authority with a
preexisting TIF district for which either of the following is true:
The increments from the district are insufficient to pay preexisting obligations as a result of rate
changes or the elimination of the state-determined general education property tax levy
The TIF authority has a binding contract, entered into before August 1, 2001, with a person requiring
the authority to pay an amount that may not exceed the increment from the district
Special deficit authority is only available for the TIF authority of districts of which the request for
certification was made before August 1, 2001.
A TIF authority qualifying for special deficit authority may take any or all of the following actions to
eliminate its deficit:
Determine that the original local tax rate certified for the district does not apply anymore
40
41
42

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Compute the fiscal disparities contribution according to Minn. Stat. 469.177, subd. 3, para. (a),
regardless of the computation method was chosen when the district was certified
Special deficit authority must be granted by municipal resolution after notice and public hearing. A TIF
authority which takes these actions must do so on an annual basis and must notify the county auditor by
July 1 of the year before the actions are to become effective.
Pooling Permitted for Deficits

The municipality of a TIF district may transfer available increment from one TIF district to another
within the municipality if the transfer is necessary to eliminate a deficit. This provision is an exception
to the multi-county use prohibition under Minn. Stat. 469.176, subd. 4i, and to the pooling limitations
outlined in Minn. Stat. 469.1763, subd. 2. The municipality may only use this authority after it has
used all available increments in the transfer-receiving district to attempt to eliminate the deficit and it
has exercised any permitted action through special deficit authority.
Duration Extension to Offset Deficits

An authority may extend the duration limit of a TIF district under Minn. Stat. 469.1794 if the
increments from the district are insufficient to pay qualifying obligations due to changes in the class
rates and elimination of the state-determined general education property tax levy of 2001.
A district must first exercise its special deficit authority and transfer options before extending its
duration limit. Then, the district may only extend its duration limit with municipal approval after public
notice and hearing.
A districts duration can be extended to the lesser of the following:

Four years
The tax reform percentage for the district multiplied by the remaining duration of the district
The county auditor calculates the tax reform percentage, which is equal to the districts original tax
capacity taxes paid in 2001 minus the average of the original tax capacity taxes paid in 2002 and 2003,
all divided by original tax capacity taxes paid in 2001.
If these extensions are still not sufficient to eliminate the deficit, the Department of Revenue may grant a
further extension of up to two years.
Special Taxing Districts for Deficits

The provision allowing municipalities to establish a special taxing district within a TIF district in order
to reduce deficits was repealed in 2012.

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Delinquent Taxes from Decertified TIF Parcels
A county auditor may distribute property tax revenue from a parcel in a former TIF district to the TIF
authority as tax increment if the revenue is collected after the TIF district was decertified only if the
following three conditions exist:43
The parcel on which the property taxes were paid must have been part of the TIF district at the time
it was decertified.
The property taxes must have been delinquent, not merely past due, at the time the TIF district was
decertified.
The failure to pay the delinquent property taxes when they were due either caused the TIF authority
to be unable to pay obligations or must have forced it to use non-TIF funds to pay the obligations
If the delinquent property taxes collected after a TIF district was decertified do not meet these
requirements, the county auditor should distribute the funds as ordinary property tax revenue, not tax
increment.
Decertification of TIF Districts
The county auditor is responsible for decertifying TIF districts, even if the TIF authority has not sent a
notification or resolution formally decertifying the district. It is important for county auditors to closely
monitor TIF districts to ensure that they are decertified at the correct time.
A TIF district must be decertified at the earliest of the following times:44

The maximum duration limit according to the TIF plan and/or statute
Failure to comply with income requirements for housing projects
Completion of requirements to decertify under the six-year rule
Upon request for decertification from the TIF authority
A TIF district may be decertified after the truth-in-taxation due date, but prior to the mailing of the
property tax statements. The amount of property tax shown on the taxpayers property tax statement will
be lower than that shown on the truth-in-taxation notice.45 This ensures that there is not a transparency
or disclosure issue in regard to the property taxes.
When a county auditor or TIF authority decertifies a TIF district, the district no longer contains any
parcels and the distribution of tax increments stops, except for certain delinquent taxes. The TIF
authority must also return any excess increment, and the county auditor must distribute the increment as
excess taxes.
The county auditor must complete and file a confirmation of decertified TIF district form with the State
Auditor upon the decertification of any TIF district. The form requires information and certification
43
Minn. Stat. 469.176, subd. 1f.
44
45
There is one exception to this general statement. Parcels within the TIF District being decertified will not have lower
property taxes on the property tax statement. However, the parcel owners must go through a legal process to have their
district decertified. As long as those involved are fully aware of the effects of the decertification, then there are no
transparency or disclosure issues.

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from both the county auditor and the TIF authority, generally accompanied by the resolution of the TIF
authority decertifying the district. After completion, the County Auditor should retain a copy for their
files, send a copy to the TIF authority, and send the original to the State Auditors Office.
This form can be found on the State Auditors website.

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Tax Increment Financing Glossary
Administrative expenses are all expenditures of a TIF authority other than the direct cost of physical
improvements, including architectural and engineering fees. They include expenses such as bond
counsel and fiscal consultant fees and the authority's operating costs.46 The amount of increments that
may be spent on administrative expenses is limited. For most districts, the limit is 10% of expenditures
authorized by the TIF plan or of the total increments from the district, whichever is less. For districts
certified between August 1, 1979 and July 1, 1982, the limit is 5%. These rules apply to TIF project
areas rather than just the district. There is no limit on increments used to pay county administrative
expenses.47
Assessment agreements establish a minimum market value of development in a TIF district for
property tax purposes, regardless of the development's actual market value.48 Assessment agreements
reduce the risk to the authority and city that the tax increments will not be sufficient to pay obligations
of the project. Since the liability for property taxes has priority over the mortgage lenders' liens, property
taxes generally will be paid even in a foreclosure situation. Although assessment agreements reduce the
risk to the city, they do not eliminate it. Increments may still fall short of projections if the legislature
changes class rates or the taxing districts' tax rates drop. In addition, temporary cash shortfalls may
occur if a developer goes bankrupt and the mortgage lender does not step in immediately to make
property tax payments. Assessment agreements are binding on a purchaser of the property.
Blight or blighted areas is redevelopment jargon for areas that contain high percentages of dilapidated
buildings or otherwise deteriorating and substandard structures. The term was originally used largely to
refer to slum housing and its effects on the quality of housing and commercial structures in adjoining
areas. TIF redevelopment districts, TIF renewal and renovation districts, and HRA project areas must
meet statutory tests for blight, where a percentage of the buildings, streets, utilities, or similar structures
are considered substandard.
The but-for test is a finding requirement when creating a TIF district. A municipality must find that, in
its opinion, the subsidized development would not have happed but for the use of TIF.
Capitalized interest is the issuance of additional TIF bonds to pay the interest on the project's debt until
increments begin to be received. TIF involves an inherent mismatch in costs and revenues. Most costs
are incurred at the beginning of development, but increments are collected only when the development
begins paying increased property taxes, at least two years later. This mismatch can be overcome by
borrowing money to cover interest payments.
Captured tax capacity is the current property tax capacity of the parcels of property in the TIF district
area, less the original tax capacity. Captured tax capacity multiplied by the original local tax rate yields
the amount of increment.49
46
47
48
49

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Certification request date is the date which a TIF districts requests to the county auditor for the
certification of original values and original local tax rates for the properties comprising the increment
district. For a request that is mailed to the county auditor, it is the postmark date on the mailing
envelope. For a request that is hand delivered to the county auditor, it is the delivery date which should
be stamped on the request by the county auditor. The certification request date is not the date that the
county auditor certifies the requested original values to the increment district.
Credit enhanced bonds are TIF revenue bonds that are secured by pledges of increments from several
TIF districts. Credit enhanced bonds are bonds used to finance improvements in a TIF district. They first
rely on increments from that district for repayment, but if those increments are not sufficient, increments
from other districts may be used to pay the bonds. These payments are not considered to be pooling and
do not violate pooling percentage limits.50
A development authority or authority is a government entity authorized to exercise tax increment

financing powers. Authorities include cities, economic development authorities (EDAs), housing and
redevelopment authorities (HRAs), port authorities, and rural development finance authorities.51 The
most common development authorities are HRAs and EDAs.
District area is the area containing properties from which increment is collected. The area is defined by
the TIF plan and is part of the larger project area. The district does not need to be contiguous.52
Economic development authorities or EDAs are special purpose governmental entities authorized to
exercise a variety of development powers, including tax increment financing powers. EDAs are typically
created by cities, although most counties are now also permitted to establish EDAs either under special
or general law.53
An economic development district is a type of TIF district that may be established in any geographic
area. Economic development districts are not restricted to blighted areas or to areas with development
difficulties. Economic development districts are to be used to keep a business in Minnesota or the city,
to increase employment in the state, or to preserve and enhance the state's tax base.54
Excess increments are increments that exceed the amount needed to pay the costs authorized under the
TIF plan for the year. Increments are not excess increments if the TIF plan still permits additional
expenditures. Excess increments must be used to pay outstanding bonds or to be shared proportionately
to the city, county, and school district.55
Excess taxes are the additional taxes collected due to a tax rate greater than the certified original tax
rate. Excess taxes are distributed proportionately to the city, county, and school district.56
50
51
52
53
Minn. Stat. 469.174, subd. 2; Minn. Stat. 469.090 to 469.1082.
54
Minn. Stat. 469.174, subd. 12; see Minn. Stat. 469.176, subd. 4c.
55
56

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The four-year knock-down rule requires development activity to occur on a parcel located in a TIF
district within four years after its creation. If no development activity has occurred, the parcel will be
dropped from the district. The parcel will be re-instated if development activity occurs, but at its current
value instead of its original certification value. This rule can be satisfied by demolition, rehabilitation, or
renovation on the parcel or by improvement of a public street adjacent to the parcel. Installing utilities
does not qualify.57
Fiscal disparity captured-value contribution is the portion of a TIF districts captured value that is
contributed to a fiscal disparity pool. This only applies to municipalities in the seven-county
metropolitan area or the seven-county iron range area. A municipalitys decision to contribute to the
fiscal disparity pool from the TIF district is outlined in the TIF plan. This determination is outlined in
the TIF plan.58
The five-year rule requires that, following the fifth year after the certification of the district, increments
only be spent to decertify the district by paying off obligations. Increments may only be spent to pay
bonds or contracts that financed improvements or to reimburse the developer for costs it paid to make
improvements in the district.59
The general education levy impacts the calculation of the original local tax rate and excess increment.
Excess tax increment due to the general education levy is first paid to this fund. Only after the general
education levy has been paid in full can excess increment be calculated in the normal manner. The
general education levy does not receive proportional excess as the county, city, and school funds do.60
General obligation municipality bonds are TIF bonds to which the municipality pledges its general
obligation. If the increment or other pledged revenues are insufficient to meet debt obligations, the city
must levy a property tax to make up the difference. Although these bonds are general obligation city
bonds, they are not subject to the election or referendum requirements if more than 20 percent of the
cost will be paid with tax increments.61
General obligation authority bonds are TIF bonds that are backed by the full faith and credit of the
development authority but not the city. If the increment or other revenues prove insufficient, the
development authority must use any available authority revenues to make up the difference. However,
because the authority has only limited taxing authority, a general tax levy cannot be imposed to make up
the shortfall.62
A hazardous substance sub-district is a type of TIF district that is used to finance the clean-up cost of
properties containing pollution. A hazardous substance sub-district is created within another, regular TIF
district. The original tax capacity of the sub-district is reduced by the cost of clean-up, but not below
zero, providing immediate increment from the existing property value. A hazardous substance site may
only collect increments for as long as the time necessary to recover the cost of cleaning up the pollution.
57
58
59
60
Minn. Stat. 469.177, subd. 9, para. (d).
61
Minn. Stat. 469.178, subd. 2; Minn. Stat. 475.58, subd. 1.
62

Page 207 of 242

The additional increments received as a result of reducing the original tax capacity by the clean-up costs
may only be used to pay clean-up and related costs. Other increments collected in the overlaying regular
TIF district may also be used to pay clean-up costs.63
Housing districts are TIF districts created and used primarily to provide housing for low- and
moderate-income families. To qualify as a housing district, 80% or more of the square footage of the
development must be used for low- and moderate-income housing. In addition, specified income
guidelines apply to individuals occupying the housing. Housing districts are not restricted to blighted
areas.64
Housing and redevelopment authorities or HRAs are development agencies authorized to exercise
TIF powers for redevelopment and housing projects. The county authorization, however, does not
extend to Ramsey County or to counties with housing authorities established under special laws.65
Interest rate write-down programs use tax increments to subsidize the interest payments on private
loans to finance low- and moderate-income housing developments. Tax increments from a district may
not be collected to provide interest reduction programs for more than 15 years. This limit starts with the
first interest reduction payment. Interest reduction programs may not be used for owner-occupied,
single-family dwellings.66
Interfund loans are loans or advances made by the development authority or municipality to pay TIF
costs that will be repaid with tax increments. These loans must be authorized by a resolution of the
authority or municipality which must be passed before the loan is made. The terms of the loan must be
in writing and include the principal amount, term, and interest rate.67
A land write-down occurs when a TIF authority transfers property to a developer at less than authority's
acquisition cost. For example, an HRA may acquire a parcel for $1 million and spend an additional
$100,000 demolishing a building on the property. If the HRA sells the property to a developer for
$500,000, the price of the land is "written down" from the HRA's $1.1 million cost to $500,000. The
authority may give the land to the developer, or write it down to $0.
A municipality is the general purpose governmental unit required to approve new TIF districts, the
issuance of bonds, and other major TIF decisions made initially by the TIF authority. In most cases, the
municipality is the city in which the project is located, but it may be a township or a county. For projects
located outside of a city or for certain multi-county projects, the municipality is the county.68
Original tax capacity is the tax capacity of the TIF district at the time the TIF district is established.
The original tax capacity is subject to adjustment if tax exempt property in the district becomes taxable,
taxable properties become tax exempt, the legislature modifies the class rates of properties in the district,
properties qualify for an exclusion, or parcels are added to or deleted from the district.69
63
64
Minn. Stat. 469.174, subd. 11; Minn. Stat. 469.1761.
65
66
Minn. Stat. 469.176, subd. 4f.
67
68
Minn. Stat. 469.174, subd. 6; Minn. Stat. 469.175, subd. 3.
69

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Original local tax rate is the sum of the tax rates imposed by all the taxing districts in the year the TIF
district is created. This rate is multiplied by the captured tax capacity to determine the amount of tax
increment. These rules apply only to post-1988 districts. For pre-1988, increment is determined using
the current year local tax rates. Local tax rates are after adjustment for any disparity reduction aid. The
original local tax rate never changes.70
Pay-as-you-go financing relies on the private developer or property owner to initially finance the costs
of the TIF improvements. A development agreement between the authority and the developer provides
that the developer will be repaid as tax increments are collected. This method of financing allows the
city or authority to avoid borrowing money to pay for the costs of up-front or capitalizing interest. The
developer may only be reimbursed for costs that increments can legally be spent on. Pay-as-you-go
financing has become more popular after the federal tax law made it more difficult to use tax exempt
bonds to finance many TIF costs.
Pooling increments is the permitted spending of increments outside of the TIF district but within the
project area.71
Port authorities are special purpose governmental entities authorized to exercise a variety of
development powers, including TIF powers. Only a limited number of cities have port authority
powers.72
Pre-1979 districts are TIF districts for which certification was requested before August 1, 1979. These
districts are generally not subject to rules of the TIF Act, with some exceptions.73
Pre-1982 districts are TIF districts for which certification was requested before July 1, 1982. These
districts do not qualify under the 1982 amendments to the TIF Act, including the authority to spend
increments on activities outside the district area and to spend more than 5% of increments on
administrative expenses.
Pre-1988 districts are TIF districts for which certification was requested before May 1, 1988. These
districts are not subject to most of the restrictions that were enacted by the 1988 legislature. These
include the calculation of increment revenues based on the certified original tax capacity rate, the
restrictions on soils condition districts, the requirement to pay the county's administrative costs, and a
variety of other restrictions.
Pre-1990 districts are TIF districts for which certification was requested before May 1, 1990. These
districts are not subject to most of the 1990 changes in the TIF law. Included in the 1990 changes were
limitations on pooling and the five-year rule. The enforcement provisions of the 1990 act apply to all
TIF districts. To qualify as a pre-1990 district, the development authority had to do one of the following
by June 1, 1991: enter into a development agreement for a site in the district, issue bonds, or acquire
property in the district.
70
71
Minn. Stat. 469.1763.
72
73
Minn. Stat. 469.179.

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Pre-existing district is a TIF district for which the request for certification was made before August 1,
2001. Special deficit reductions are limited to pre-existing districts.74 These deficit reduction provisions
are intended to provide development authorities options for increasing increments in response to the
effects of the 2001 property tax reform. The 2001 reform significantly reduced increments statewide and
made it difficult for some districts to meet their contractual and bond obligations.
Pre-existing obligations are TIF bonds, contracts, pay-as-you-go contracts, and interfund loans that
were approved or issued before August 1, 2001. The special deficit reduction provisions are generally
limited to paying preexisting obligations. Contacts to issue bonds must have been approved before July
1, 2001.75
Prior planned improvements are improvements for which building permits were issued 18 months
before certification of the TIF districts. The property value of these improvements may not be captured
and must be added to the original tax capacity.76
Project area is the geographic area in which tax increment revenues may be spent. These revenues must
be collected from TIF districts located in the project area. Project areas are designated by the
development authority, such as the HRA, EDA, port authority, or municipal development act, under the
applicable development law.77
Qualified disaster area is an area that was subject to disaster or emergency as declared by the federal,
state, or local government in the last 18 months. The disaster must have caused substantial damage to at
least half of the buildings in the area, where at least 70% of the parcels are occupied by buildings,
streets, utilities, parking lots, or other similar structures. These areas can be designated a redevelopment
district with an original tax capacity equal to the value of the land after the disaster.78
Retained captured value is the captured value minus any portion that is shared with the taxing districts
and minus any portion that is contributed to the fiscal disparity pool. The retained captured value is the
value which determines the TIF district's increment. It is also the value that is excluded from a taxing
district's net tax capacity in determining its taxable net tax capacity. The retained captured value is
determined for an increment district in total, not on a parcel by parcel basis.
A redevelopment TIF district is a type of TIF district used to finance the redevelopment of areas
occupied by substandard buildings and other structures or railroad properties. To qualify as a
redevelopment district, 70% of the district's area must be occupied by buildings and structures and 50%
of those must be structurally substandard. The area may also qualify as vacant or underused railroad
property, a tank facility, or a qualified disaster area.79
74
75
76
77
78
Minn. Stat. 469.174, subd. 10b; Minn. Stat. 469.177, subd. 1, para. (g).
79

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A small city under the TIF law may use economic development districts for small commercial
developments, such as retail and office space. To be considered a small city, the citys population must
be 5,000 or less, and it may not be within ten miles of a city with a population of 10,000 or more. This is
intended to disqualify suburbs of larger cities.80
A soils condition TIF district is a type of TIF district that is used to finance correction of hazardous
waste or pollution removal or remediation. Clean-up costs must exceed $2 per square foot or the market
value of the property. Increments from soils condition districts may only be expended to acquire
property, clean up contamination, and pay for administrative expenses.81
The statewide median family income is a requirement for certain types of TIF districts (i.e. economic
development and housing). This figure is calculated by the United States Department of Housing and
Urban Development.82 Data sets are available online.
The tax increment financing plan states the objective of a TIF district, the activities to be undertaken,
the type of district to be created, the estimated costs, and other details of a proposed district. The TIF
plan must be approved by the municipality after a public hearing. The plan defines and limits the
activities that may be undertaken with the increments collected from the district. The plan may be
amended at any time, but a public hearing must be held before significant changes can be made. The
geographic area of a TIF district cannot be increased five or more years after the district was created.83
Tax increment revenue bonds are payable only by revenues generated by the TIF district itself.84
Tax increments include the property taxes paid by the captured value of the TIF district, interest or
other investment earnings on tax increments, proceeds from sale or lease of property purchased with tax
increments, and repayments or the return of tax increments to the authority.85
Tourism counties are counties in which economic development districts may be used for tourism
projects. Qualifying counties must have a median income at or below 85% of the state median and be
located in development regions 1, 2, 3, 4, 5 OR 7E. Furthermore, within tourism counties, tourism
facilities must not be located in a city with a population greater than 20,000, and the facility must be
acquired, constructed, or rehabilitated for a privately owned convention and meeting facility primarily
serving individuals from outside the county.86
80
Minn. Stat. 469.174, subd. 28; Minn. Stat. 469.176, subd. 4c.
81
Minn. Stat. 469.174, subd. 19; Minn. Stat. 469.176, subd. 4b.
82
Minnesota Rules 4900.0010, subd. 23, para. (c)(2).
83
Minn. Stat. 469.175.
84
85
86

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11.A.

October 3, 2017
FROM: Darin Nelson, Finance Director

Subject:
City Bill List
None
Recommendation:
Informational Only
Discussion:
Attached is the most recent monthly Financial Report for the General fund. These reports
reflect the expenditures as recorded for 2017 activity. The following transactions are notable
for this reporting cycle:
Kuechler Underground Inc. has requested estimate pay voucher 4 for the 2017 Street
Reconstruction project. $251,256.68
Northern Asphalt Inc. has requested estimate pay voucher 3 for Whispering Oaks
Sanitary Sewer Extension project. $236,621.63
Towmaster Truck Equipment has submitted for payment the parts that will be installed
on the new single axle plow truck. These parts are: box, hoist, plow, controls and
accessories. $115,362.00
Included in the check list are various refunds, returns, and pass through.
Budget Impact:
Operating and capital expenditures within the 2017 budget.
ATTACHMENTS:
Page 212 of 242

Monthly Financial Report
Council Check Summary
Council Check Register
Bill List Transfers
Page 213 of 242

CITY OF SHAKOPEE
Di YTD September YTD Budget September
vis 2017 2017 2017 Balance Percent YTD
io Budget Actual Actual Remaining Used 2016
01000 - GENERAL FUND
EXPENDITURES:
11 - MAYOR & COUNCIL (197,900) (31,433) (148,933) (48,967) 75% (148,949)
12 - ADMINISTRATION (1,707,000) (139,694) (1,144,403) (562,597) 67% (911,240)
13 - CITY CLERK (318,000) (19,633) (213,977) (104,023) 67% (213,933)
15 - FINANCE (1,207,900) (80,133) (950,160) (257,740) 79% (897,935)
17 - COMMUNITY DEVELOPMENT (586,800) (77,171) (437,396) (149,404) 75% (319,961)
18 - FACILITIES (384,800) (29,578) (263,110) (121,690) 68% (245,055)
31 - POLICE DEPARTMENT (7,980,000) (557,791) (5,596,075) (2,383,925) 70% (5,342,301)
32 - FIRE (2,160,400) (99,931) (1,332,042) (828,358) 62% (1,303,606)
33 - INSPECTION-BLDG-PLMBG-HTG (796,200) (68,541) (595,547) (200,653) 75% (480,753)
41 - ENGINEERING (786,200) (46,200) (444,854) (341,346) 57% (452,595)
Page 214 of 242

42 - STREET MAINTENANCE (2,151,100) (152,429) (1,694,076) (457,024) 79% (1,394,518)
44 - FLEET (435,000) (25,416) (287,850) (147,150) 66% (289,776)
46 - PARK MAINTENANCE (1,936,300) (104,527) (1,296,047) (640,253) 67% (1,063,079)
66 - NATURAL RESOURCES (198,000) (2,545) (142,976) (55,024) 72% (120,438)
67 - RECREATION (3,190,000) (233,984) (2,178,329) (1,011,671) 68% (1,703,967)
91 - UNALLOCATED (217,600) (256) (12,436) (205,164) 6% (9,917)
TOTAL EXPENDITURES (24,253,200) (1,669,264) (16,738,211) (7,514,989) 69% (14,898,023)
Key
Varies more than 10% than budget positively
Varies more than 10% than budget negatively
Within 10% of budget
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Funds transferred electronically September 20, 2017 to October 3, 2017
PAYROLL $ 299,791.01
FIT/FICA $ 93,577.42
STATE INCOME TAX $ 19,040.77
PERA $ 87,420.81
HEALTH CARE SAVINGS $ 11,753.45
HEALTH SAVINGS ACCT $ 6,035.79
NATIONWIDE DEF COMP $ 14,831.44
ICMA DEFERRED COMP $ 1,557.14
MSRS $ 3,561.66
FSA $ 908.27
MN WAGE LEVY $ 144.23
Total $ 538,621.99
Page 241 of 242

10.11.B.

October 3, 2017

Subject:
Liaison and Administration Reports
Recommendation:
Discussion:
Budget Impact:
Page 242 of 242

Shakopee Economic Development Authority
October 3, 2017
7:00 PM
1. Roll Call
3. Consent Business
3.A. EDA Bill List
3.B. EDA Minutes
4. General Business
5. Adjourn to Wednesday, November 8, 2017 at 7 p.m.
Note to EDA Members:

If you have any questions or need additional information on any of the above items, please call Michael Kerski, prior to
the meeting at (952)233-9346.
Page 1 of 7
3.A.

October 3, 2017
FROM: Darin Nelson, Finance Director

TO: EDA Commission Members
Subject:
EDA Bill List
Move to approve bills in the amount of $9,038.00 for the EDA Fund, which allows for
internal charges that are applied to the EDA fund.
Recommendation:
Approve
Discussion:
Attached is a listing of bills for the EDA for the period 9/20/2017 to 10/3/2017. Payments
are for general office supplies, attorney & professional service fees.
Budget Impact:
N/A
ATTACHMENTS:

EDA Check Register
Page 2 of 7
Page 3 of 7
9/26/2017 3:26:43 PM Page 1 of 1
Check # GL Date Ck Date Total Amount Vend # Description Remark BU Obj Project Doc # Date - Batch (Julian)
Check Total 1,098.00
Check Total 7,940.00
9,038.00 GRAND TOTAL
Page 4 of 7
Page 1 of 1
3.B.

October 3, 2017

TO: EDA Board
Subject:
EDA Minutes from September 19, 2017
Approve the minutes from September 19, 2017.
Recommendation:
Approve the above motion.
Discussion:
Budget Impact:
ATTACHMENTS:
September 19, 2017
Page 5 of 7
MINUTES
September 19, 2017
7:00 PM
1. Roll Call
Present: Chairman Matt Lehman, Commissioner Mike Luce, Commissioner Bill Mars,
Commissioner Jay Whiting, Commissioner Kathi Mocol
Attorney Jim Thomson, Finance Director Darin Nelson, Engineering and Public Works
Director Steve Lillehaug, Parks and Recreation Director Jamie Polley, Planning and
Development Director Michael Kerski, Fire Chief Rick Coleman, City Clerk Lori Hensen,
Senior Planner Eric Weiss
Commissioner William Mars made a motion to approve the agenda, seconded by

Commissioner Jay Whiting and the motion passed.
5-0
3. Consent Business
Commissioner Jay Whiting made a motion to approve consent agenda, seconded by

Commissioner Kathi Mocol and the motion passed.
5-0
3.A. EDA Bill List
Approve bills in the amount of $33,328.43 for the EDA Fund, which allows for
internal charges that are applied to the EDA fund. (Motion was carried under consent
agenda.)
3.B. EDA Minutes
Approve the minutes from August 15, 2017. (Motion was carried under consent
agenda.)
4. General Business
4.A. Proposed 2018 EDA Special Benefit Levy and Budget
Page 6
1 of 7
2
Commissioner Jay Whiting made a motion to adopt Resolution No. 17-4, approving
the proposed 2018 EDA special benefit levy of $350,000 and the proposed 2018
budget, seconded by Commissioner William Mars and the motion passed.
5-0
4.B. Resolution Designating Buildings as Structurally substandard within Shakopee
Redevelopment Project
Commissioner Jay Whiting made a motion to approve Resolution 17-2 removing the
parking lot, seconded by Commissioner Kathi Mocol and the motion passed.
4-1
Nays: Commissioner Luce
4.C. Resolution Authorizing the Reimbursement of Certain Qualified Costs incurred
by the City of Shakopee
Commissioner William Mars made a motion to approve Resolution No. 17-3,

seconded by Commissioner Jay Whiting and the motion passed.
3-2
Nays: Chairman Lehman, Commissioner Luce
5. Reports
6. Adjourn to Tuesday, October 3, 2017 at 7 p.m.
Commissioner Jay Whiting made a motion to adjourn to October 3, 2017 at 7:00 p.m.,
seconded by Commissioner Kathi Mocol and the motion passed.
5-0
Page 7
2 of 7
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10/3/17 Shakopee City Council Meeting

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Shakopee City Council

Shakopee Mission Statement

Mayor Bill Mars presiding

Shakopee City Council

FROM: Lori J. Hensen, City Clerk

August 29, 2017

Mayor Bill Mars presiding

Councilmember Kathi Mocol made a motion to approve agenda, seconded by

Councilmember Matt Lehman made a motion to recess, seconded by

6. Adjournment to September 5, 2017 at 7:00 p.m.

Councilmember Jay Whiting made a motion to adjourn to September 5, 2017 at 7:00

Mayor Bill Mars presiding

Councilmember Matt Lehman made a motion to approve consent agenda as amended,

B. Parks and Recreation

Councilmember Matt Lehman made a motion to continue the public hearing to

A. Parks and Recreation

Councilmember Matt Lehman made a motion to approve the 2018 Community

Councilmember Matt Lehman made a motion to adjourn for a 10 minutes recess,

Councilmember Jay Whiting made a motion to approve an increase of $0.16/per user,

Councilmember Jay Whiting made a motion to adopt Resolution No. 7931

Councilmember Jay Whiting made a motion to adopt the 2018-2022 Capital

Councilmember Jay Whiting made a motion to approve the Plan Charter as a

Councilmember Kathi Mocol made a motion to approve resolution No. 7920

Councilmember Kathi Mocol made a motion to approve resolution 7921 authorizing

14. Adjournment to October 3, 2017 at 7:00 p.m.

Councilmember Jay Whiting made a motion to adjourn to October 3, 2017 at 7:00

Shakopee City Council

FROM: Jennifer Gabbard

The negotiated contract includes the following:

2. Article 9 Work Schedules

4. Article 12 Early Call-In Pay

7. Article 25 Sick Leave

8. Article 26 Post-Employment Health Care Savings Plan

10. Article 31 Wages

11. Article 33 Duration

12. Appendix A Wages

13. Appendix C Post Employment Health Care Savings Plan (HCSP)

Resolution 7934 - Ratifying the Teamsters Union Contract 2017-2019

A RESOLUTION RATIFYING THE TEAMSTERS UNION CONTRACT FOR 2017-2019

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE,

THE CITY OF SHAKOPEE

PUBLIC AND LAW ENFORCEMENT EMPLOYEES UNION

LOCAL NO. 320

Effective January 1, 2014 2017 December 31, 20162019

ARTICLE SUBJECT PAGE

1.1 Establish certain hours, wages and other conditions of employment;

3.2 EMPLOYER: The City of Shakopee

3.4 EMPLOYEE: A member of the exclusively recognized bargaining unit.

ARTICLE 4. EMPLOYER SECURITY

ARTICLE 5. EMPLOYER AUTHORITY

6.1 Definition of a Grievance. A grievance is defined as a dispute or disagreement as to the interpretation or

Step 1. An employee claiming a violation concerning the interpretation or application of this

6.5 Arbitrator's Authority

ARTICLE 7. UNION SECURITY

In recognition of the Union as the exclusive representative, the Employer shall:

ARTICLE 9. WORK SCHEDULES

ARTICLE 10. OVERTIME

ARTICLE 11. CALL BACK TIME

ARTICLE 12. EARLY CALL-IN PAY

ARTICLE 13. LEGAL DEFENSE

ARTICLE 14. SUBCONTRACTING WORK

ARTICLE 15. DISCIPLINE

a) oral reprimand or warning;