012412completeagendaCITY OF RICHFIELD, MINNESOTA
TUESDAY, JANUARY 24, 2012
RICHFIELD MUNICIPAL CENTER
6700 PORTLAND AVENUE
SPECIAL CITY COUNCIL/HRA/PLANNING COMMISSION WORKSESSION
BARTHOLOMEW CONFERENCE ROOM
5:45 P.M.
AGENDA
Call to order
Roll call
1. Discussion regarding Pillsbury Commons proposal (Council Memo No. 10)
Notes:
Adjournment
REGULAR CITY COUNCIL MEETING
COUNCIL CHAMBERS
7:00 P.M.
AGENDA
INTRODUCTORY PROCEEDINGS
Call to order
Roll call
Open forum (15 minutes maximum)
Each speaker is to keep their comment period to three minutes to allow sufficient Time for
others, Comments are to be an opportunity to address the Council on items not on the agenda.
Individuals who wish to address the Council must have registered prior to the meeting.
Notes:
Pledge of Allegiance
Approval of minutes of (1) Special City Council Worksession of January 10, 2012 and (2)
Regular City Council Meeting of January 10, 2012
COUNCIL DISCUSSION
1. Council discussion
• Hats Off to Hometown Hits
Notes:
AGENDA APPROVAL
2. Council approval of agenda
CONSENT CALENDAR
3. Consent Calendar contains several separate items, which are acted upon by the City
Council in one motion. Once the Consent Calendar has been approved, the individual
items and recommended actions have also been approved. No further Council action is
necessary on these items. However, any Council Member may request that an item be
removed from the Consent Calendar and placed on the regular agenda for Council
discussion and action. All items listed on the Consent Calendar are recommended for
approval.
A. Consideration of approval of resolution authorizing purchase of real property
located at 6315-16th Avenue S.R. No. 21
Notes:
4. Consideration of items, if any, removed from Consent Calendar
Notes:
RESOLUTIONS
5. Consideration of resolution approving contract with Police Officers and Detectives LELS
Local 123 for contract period January 1, 2012 through December 31, 2013
Staff Report No. 22
Notes:
6. Consideration of resolution pertaining to filing of Pay Equity Report with Minnesota
Management and Budget Department
Staff Report No. 23
Notes:
OTHER BUSINESS
7. Consideration of amendment to agreement for management services with Wheel Fun
Rentals, LLC for Adventure Gardens Mini-Golf
Staff Report No. 24
Notes:
8. Consideration of designating City Council liaison appointments for 2012 to various
metropolitan agencies and City commissions
Staff Report No. 25
Notes:
9. Consideration of appointments to City advisory commissions
Staff Report No. 26
Notes:
10. Consideration of City Council attendance at 2012 National League of Cities
conferences
Staff Report No. 27
Notes:
11. Consideration of designating Mayor Pro Tempore for 2012
Staff Report No. 28
Notes:
CITY MANAGER'S REPORT
12. City Manager's report
Notes:
13. Claims and payrolls
Open.forum (additional 15 minutes if more time needed after first Open Forum and by
majority vote of the City Council)
Each speaker is to keep their comment period to three minutes to allow sufficient time for
others. Comments are to be an opportunity to address the Council on items not on the agenda.
Individuals who wish to address the Council must have registered prior to the meeting.
Notes:
14. Adjournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must be
made at least 96 hours in advance to the City Clerk at 612-861-9738.
CITY OF RICHFIELD, MINNESOTA
Office of City Manager
January 19, 2012
Council Memorandum No. 10 HRA Memorandum No. 6
Housing and Redevelopment
The Honorable Mayor Authority Commissioners
and City of Richfield
Members of the City Council
Subject: Pillsbury Commons Proposal and Upcoming Worksession
Council Members and Commissioners:
A joint City Council, Housing and Redevelopment Authority (HRA) and Planning
Commission worksession is scheduled for Tuesday, January 24, 2012 at 5:45 p.m. The
purpose of this meeting is for the prospective developer (Ron Clark Construction) to
provide follow-up information regarding their proposed site plan (including modifications
made as a result of neighborhood feedback), further explain the Low Income Housing
Tax Credit (LIHTC) financing in greater detail, and discuss their tentative schedule for
advancing their proposal.
In advance of the meeting, Ron Clark has provided a letter with some background
information that might help inform the discussion at the worksession (attached). Ron Clark
has also sent a letter to the neighborhood surrounding the site (attached) further
explaining items that were voiced as concerns at the November 29, 2011 neighborhood
meeting.
Additionally, Councilperson Wroge has requested additional information regarding Ron
Clark's complete financing for the project and about the City's role in analyzing all of the
sources of funding. A memorandum from the City's financial analysts, Ehlers &
Associates outlines the financial analysis (commonly called the "but-for analysis") that
would be conducted on a project seeking tax increment financing (TIF) (as Ron Clark
has expressed as their intention). Staff has not yet concluded this analysis, however,
because we are awaiting receipt of a "sources and uses" statement as well as a formal
request for a specified amount of TIF from the developer.
There are a number of steps remaining in this process for which detailed analysis will be
provided to decision-makers as soon as the appropriate applications are made by the
dev/t;~per and those analyses are conducted by staff.
ec ully subm' ed,
ven . De
City Manager
SLD:cak
Attachments
Email: Department Directors
Assistant City Manager
Copy: Planning Commission
7500 West 78~~~ Strcct
I3clina, 1fi~
55439
(952) 947-3000
fix (952) 947-3030
January 18, 2012
Steve Devich
Executive Director
City of Richfield
6700 Portland Avenue
Richfield,. MN 55423
RE: Pillsbury Commons
Dear Mr. Devich:
Our development team has been working to create a development plan for a portion of the farmer
municipal garage site at the southwest corner of 76th Street and Pillsbury-Avenue. We believe that we
can develop a project that meets the needs of the whole Richfield community and responds to the
needs identified in the City's Comprehensive Plan. We appreciate the opportunity to discuss this
proposal with the City Council, Planning Commission and HRA ("the City") at,their January 24t" Work
Session.
WORK SESSION AGENDA
We appreciate the opportunity to. meet with the City in a Work Session to provide an update on our
project. We hope to be able to provide a project update and get feedback from the City on several key
issues. We will:
1. Provide background on the proposed project
2. Provide an update on the MHFA Tax Credit approvals .and restrictions
3. Discuss the TIF project and impacts of potential site plan changes related to access
4. Provide an update on our November 29th Neighborhood Meeting, including responses to
questions- raised by the community
BACKGROUND
Ron Clark Construction and Design has been working with the City of Richfield and the HRA since
2009 on a potential development on this site. We have entered into an option to purchase agreement
with the City. During the last 2'/~ years, we have been working with City staff, .the HRA and the Council
to develop a concept that would be viable for development and would a8owthe City to sell the property
at market rates. During -our discussions with the City, we authorized a professional market study to help
us determine the highest ahd best use for the site. The 2011 study by Joe Urban. shows the need for
workforce housing in Richfield because there are approximately 2 qualifying jobs for every affordable
housing unit. This means that there are 2 people who :work in Richfield competing for every affordable
housing unit in Richfield.
75001~/est 78~ Street
f :dins,. ~t~1
55439
{952) 947-30D0
fis {952) 947-3030
On May 12, 2009, the City Council reviewed the potential of selling the city-owned property to Ron
Clark Construction and Design for a rental apartment building. The development team requested the
meeting specifically to get preliminary input from the Council and discern local support for the proposal
The concept that Clark showed at that meeting was fora 160-172 unit apartment complex on the full
3.3 acre site. The two questions asked of the Council were:
1. Do you support the rezoning from I (Industrial) to MR3 (High Density)?
2. Do you support the proposed density of 48-52 units per acre?
The City Council. consensus was "yes" to both questions and the direction was to proceed with the
project proposal. Based on this feedback, the development team went to work on refining the
development concepts.
On April 13, 2010, Ron Clark Construction and Design and the HRA entered into a Preliminary
Development Agreement far an exclusive right to develop the property. At that time, the development
team had revised the plans and was looking at a 66-unit for-sale concept.
On March 21, 2011 the HRA supported this request to renew our agreement and move forward with the
revised concept at their meeting.
On April 12, 2011, the City Council reviewed the concept which was refined. as a 70-unit workforce
housing project on the southern portion of the site. The staff report that went to the Council described
the market. and finance reasons for the change from for-sale to rental units. The HRA and Ron Clark
Construction and Design entered into a preliminary agreement for sale and development of this site
(signed May 16, 2011). Because this involved significant design costs and financing application costs,
both the City/HRA and the- Developer needed to be clear that there was City support for the concept.
The agreement specifically states "Clark is willing to undertake the activities described in this
Agreement only with the reasonable assurance from the HRA that it will support and cooperate with
Clark in its efforts." The development team continued to develop concept plans and secure financing.
On June 14, 2011, the City Council unanimously approved a resolution consenting to process for
consideration of Housing Tax Increment Finance District for Pillsbury Commons development project
on the former city maintenance facility property. Also, at that meeting, the .Council approved an option
agreement (drafted by the HRA attorney) with Ron Clark Construction and Design.. As noted in that
meeting and in the staff report, the developer will pay fair market value of the land. The plan reviewed
at that meefing wasfor "70 units of affordable housing". The staff report noted That "The City Council
has received numerous presentations of Ron Clark's development proposal for this area and has, to
date, expressed support for the project." The staff report noted critical timing issues related to the
MHFA tax credit application for this workforce housing project. The City Council voted unanimously to
approve Resolution No. 10520 Consenting To The Process For The Creation Of A Housing Tax
Increment Finance District In Support Of The Proposed Pillsbury Commons Multifamily Housing
Project. This resolution noted that 100% of the units would be affordable to persons with incomes at
60% of fhe area median income.
On June 14, 2.011, immediately following the Council action, the MHFA application was submitted. As
part of the application, R'on Clark Construction and Design was required to have the agreements to site
control and financing in place. The Council action earlier that evening approved the site control via the
Option Agreement and public financing via Resolution No. 10520. Also included in the packet was a
2
~soo ti~v«c za~h stcecc
~~lii~a,. ~\IN
55439
(952} 947-3000
fax (952) 947-3030
letter of support from the HRA dated June 14, 2011, which reiterates that "The 70 units at Pillsbury
Commons will help the HRA and City meet its goals for affordable housing, urban expansion without
sprawl, and better serving populations that are traditionally underserved; including households of color
and single heads of household with minor children."
FINANCING
On June 14, 2011,, based on this City Council adoption of the resolution of support, we proceeded to
apply for MHFA housing tax credit financing, which is a very competitive process because of the limited
dollars available, The Housing Tax Credit Program is not a subsidized housing program. It is a
financing program that was created under-the Tax Reform Act of 1986 that gives income tax incentives
{e.g. income tax credits) to for-profit corporations in return for their commitment to the community and
their investment capital that makes workforce housing feasible. The capital from these corporate
investors is equity, not debt, and accounts for about 70 % of the total cost of the project. Therefore,
with so much equitythe project's debt (or mortgage amount) and. mortgage.. payment is very low. This
allows the project owner to charge a more competitive rent to meet: the MHFA workforce housing
requirements. Each resident must have verified income to meet the MHFA requirements and they pay
their total rent. There. is no government subsidy with the tax credit program. We believe it is the best
financing program to promote community investment.
.After a very competitive funding process, the workforce housing porEion of our project is fully funded
and ready to go. This provides a fantastic opportunity for the City to provide the right use in the right
place and provide new lifecycle housing opportunities. The-tax credit reservation requires us to deliver
a total of 70 units. Unfortunately, the tax credit reservation for funding will expire if the project is not
approved on this site.
The project will need to meet these program requirements for 30 years.
Our option agreement with. the City was entered into on 06/15/2011 and exercised on 12/20/2011 and
states that vice: will pay $415,935 based on the cities land market value. appraisal.
The landowner (the City) is typically responsible for the cost of cleanup of the potentially contaminated
site. However in this case, the developer will pay for the costs of cleanup and demolition and other
eligible costs to make the site development ready. We are requesting Tax Increment Financing (T!F) for
reimbursement of the above stated costs.
The Total Development Cost (TDC) for this project is $12,574,903. The TDC is a combination of all
costs related to the project including land, development costs and all cons#ruction costs.
The Financing for the project comes through a combination of sources,. but as noted previously, site
development costs on this parcel would have made the development unfeasible without tax increment
assistance.
3
7500 West 78~~~ Street
Edina; \N
55~~39
(952) 9~7-3000
fax (952) 937-3030
The preliminary funding sources and uses for the project are as listed in the below table, but as the
project is refined, these numbers may be modified:
Pillsbury Commons
Project Sources and Uses
Project Summary
Uses:
Total Development Costs
$ 12,574,903.00
$ 12,574,903A0
Costs of Land, Development Costs,
Construction Costs and all other project
costs and fee's.
Sources:
MHFA Mortgage $ 2,571,937.00 Portion of Mortgage for Housing.
MHFA Mortgage for TIF $ 598,55&.00 Portion of Mortgage for TIF
Subtotal $ 3,170,493.0.0 $ (3,170,493.00) Total Mortgage from MHfA
TaxCredits $ 9,000,000.00 $ (9,000,000.00) Total Value of Tax Credits Purchased by
Tax Credit Investor and used as a
financial source to pay for project costs.
Subtotal $ (12,170,493.00)
Financing bap $ {404,410.00) Financing. Gap: Total .Development Cost
exceeds project financing creating a
need to request additional TIF to cover
additional costs.
Total Sources $ (12,574,903.00)
4
7500 West 78~~~ Sweet
Edina; ~1IN
55439
(952): 947-3000
fax (952) 947-3030
COMMUNITY FEEDBACK
On November 29, 2011., we held a neighborhood meeting to discuss our concept -plans prior to
preparing a format submittal, This meeting was very well attended by the neighbors and other
interested parties. A number of questions were raised at the meeting and we did our best to answer
those questions at the meeting,. but wanted to reiterate a few of the main points:
is this Subsidized Housing? What is the Housing Tax Credit program?
This project is NOT subsidized housing with the exception of one unit which is part of the Veteran's
Administration program far disabled and homeless veterans and that one unit may use a Section 8
voucher for their income/rent requirements. .
The Housing Tax Credit Program is not a subsidized housing program. This project is funded in part by
the Housing Tax. Credit program, which is sometimes called Section 42 credits. Our project is a high-
quality development that will be privately owned, operated and maintained to the highest standards.
The Housing Talc Credit program is a financing program that was created under the Tax Reform Act of
1986 that gives income tax incentives (e.g. ihcome tax credits) to for-profit corporations in return for
their commitment to the community and their investment capital that makes workforce housing feasible.
The capital from these corporate investors is equity, not debt, and accounts for about 70 % of the total
cost of the project. Therefore, with so much equity the project's debt (or mortgage amount) and
mortgage payment is low. This low monthly mortgage payment allows the project owner to charge a
lower rent to meet the MHFA workforce housing requirements.
Unfortunately, the tax credits alone do not to make the construction of the housing project financially
feasible, Accordingly, in addition to afirst-mortgage loan from a private mortgage lender or public
agency, a developer must secure so-called "gap" financing, such as tax increment financing.
This is a workforce housing project that requires the resident pay 100% of their rent. The residents
must qualify under the program income limit and must show a minimum income of two times the rent.
Income limits are $50,340 for a family of four. Rents would be from $787 - $1,091/month per unit
including utilities depending on unit size.
What is the project ownership structure?
The developer (Ron Clark} will sell the tax credits and the sale proceeds will be used to pay for the
development costs. There are many buyers for the tax credits. In this case, the developer will likely
work with a bank (like Wells Fargo or U.S. Bank) with a strong local presence on the purchase of tax
credits. The. bank will act as the broker between the developer and corporate investors, which will
provide immediate cash to pay for the construction. The bank will provide the funds on a monthly basis
to pay for the labor and materials used in the construction of the building.
Pillsbury Commons will be owned by a partnership consisting of the Corporate investor(s) (one or
more)-who will own 99.9% of the property and Richfield properties, which is Ron Clark's entity that will
awn.1% of the. property. The corporate investors must own. practically all of the development in order to
.qualify fortheir tax credit benefits. Richfield Properties will be the .general partner responsible for
ongoing management and ensuring-the property is operated in compliance with the tax credit rules to
enstare the investors get their tax credit benefits.
75001~/est 78'a~ Strcct
~:c1uTS, i~[l~T
55439
{952) 947-3000
fax (952} 947-3030
Who will live in these units? The application to fhe MHFA sfates that the targeted population far this
development will be primarily for households of color and single-head of households.
Anyone who meets the income guides will be considered for these units provided that they pass the
background screening .process. There is no preference given to any person or group. Fair Housing Act
prohibits discrimination based on:
• Race or color.
• National origin.
• Religion.
• Sex.
• Handicap (disability).
• Familial status (including children under the age of 18 living with parents or legal custodians;
pregnant women and people securing custody of children under 18).
As stated above, the project will be open to anyone who meets income requirements and will conform
to Fair Housing regulations. In accordance with MHFA policies, we will provide outreach to populations
that may not be avVare of the. project, including single head of household families and families of color.
The term "targeted" is a reflection of MHFA policies, but is an unfortunate word choice that may .imply
something different than the facts. When MHFA uses the term "targeted" in this context, they are
referring to additional marketing to ensure that all populations are aware of this project.
What is the screening process for tenants?
This project will be professionally managed by Steven Scott Managemen#. Each potential tenant is
required to pass a credit, criminal anal housing history check. Only tenants that pass these screenings
and meet the income requirements will be considered for a home. Steven Scott Management works
closely with the Richfield Police Department and their crime prevention programs.
How will you ensure that the property is properly maintained?
The MHFA funding requires that that property be properly maintained in compliance with the Workforce
Housing program requirements for a minimum of 30 years and requires a significant financial reserve
for on-going maintenance. The tax credit investors and the developer insist that the property be
maintained to ensure a return on their investment. Additionally, the developer has contracted with
Steven Scott Management to ensure that the project is properly maintained and remains an attractive,.
quality development.
Why is this project being proposed here?
As a developer, we look for well-located available land and complete a market study to ensure that any
proposed project is feasible in the planned location. Our market study was completed by Joe Urban in
6
7500 West 78~~~ Street
Lciuia,liN
55439
(952) 947-3000
fix (952) 9<~7-3030
2011 and shows demand for workforce housing in Richfield. This housing would support both existing
and new businesses in Richfield so that their employees can afford to Live and work in Richfield and
keep that money in the community. It is our understanding that Pillsbury Commons will be the first
Workforce Housing. Tax. Credit project in the City. We-are very excited to be able to provide quality
housing for Richfield residents and those who work in the community.
Why is this planned as workforce rental apartments instead of for-sale homes or market rate
aparfinertts?
As mentioned above, we completed a market study in 2011 to analyze feasible options for the .site. The
market. study identified a need for this-type of housing. Our market study says there are 1.9 affordable
jobs in the area for every one affordable housing unit. Furthermore, the existing affordable housing
stock in Richfield generally 40 - 60 years old and is not attractive to many working people. This
provides a quality housing choice in Richfield. These homes are targeted to the workforce, but are
available to anyone who meets the income limits and passes the background checks. We believe that
this building will also be attractive to seniors wanting new single-level living with heated parking.
There is an existing homeowner in this block that intends to stay in her home. How will you protect her
home?
We understand that there is a homeowner in the block who intends to remain in her home. Our
proposal does not include her property. As noted previously, rather than simply proposing a 3-story
apartment building as would be allowed, we have proposed to step the building from 2-stories near this
home to 4 stories on the south adjacent to 76t~ in order to provide a nice transition from this existing
home. Additionally, as we work to finalize our plans we will work to ensure that landscaping and other
methods are used to transition from this existing home to the new project.
If the City sells the land; will they get the full market value of the property?
Yes. The agreement between the City and Ron Clark Construction and Design requires Clark to pay
the appraised value of the land.
How will this fif into the existing neighborhood?
This property currently includes vacant industrial land (a mortuary and former city maintenance facility).
Our plans will "down-zone" this. property from the current industrial use to a lower intensity residential
use. This plan includes 70 workforce housing units on the southern portion of the site. We have no
plans to develop the northern portion of the property at this time. Future development would be driven
by market forces.
Our original concept. showed a 3-story building, but after conversations with the City and the
development team, we revised the plans to provide a 2-story building adjacent to the single family
homes on Pillsbury Avenue and a 4-story building for the portion adjacent to the 77`h Street commercial
corridor. We made this change far several reasons:
• The. 2-story portion of the building on Pillsbury provides a good transition to the single family
homes adjacent to this site.
7
7500 West 78~t~ Street
Edina; lfht
55439
(952) 947-3000
fax {952) :947-3030
• This lower height portion allowed us to develop a softer urban edge fronting Pillsbury for a Power
density residential character to blend with and transition to the existing single family homes.
• The 4-story portion of the building an 77~' provides better screening and sound control/mitigation
for the existing homes. The taller building elevation on 77`" eliminates the need for the existing
noise wall along 77`"
• The craftsman-style architecture includes many architectural details. The project has
underground parking for each unit as well as surface parking for guests that is screened from
the existing neighbors. This is a project that anyone would be proud to call home.
This development will provide needed housing choice in the city and improve connections to work
places, retail, services and entertainment on this. underutilized land and wilt help the City meet their
Comprehensive Plan goals.
Are there an additional 100 units planned for Phase U on the north portion of this site?
No. We do not have any plans-for a Phase II at this time. The option agreement prepared by the City
required us to prepare a concept plan to show that our purchase and development of the southern
portion of the property would not preclude future development of the northern portion. We prepared. a
very preliminary concept that showed a total of 160-172 units on the full 3.3 acre site. We have since
revised our plans and are proposing only to acquire the southern portion of the property for the
proposed 70-unit apartment. We are not proposing any development on the northern portion of this site.
Why is the City considering something different from the Corridor Study?
In 2008, the City developed a corridor study that was to be used to help guide the 2030 Comprehensive.
Plan process. The corridor study is not a zoning document and is not used to review applications, The
2030 Comprehensive Plan and the City Code are the adopted documents that will be used to review
any development proposal. The Comprehensive Plan does guide the property for Medium-High
Density residential use (12-24 units per acre and no greater than 4-stories). However, our discussions
with the City (dating back to 2009) indicate support for a higher density on this parcel.
Will this project decrease properfy values?
No. There is no evidence to suppork the idea that this high-quality project will decrease adjacent
property values. The property is currently a vacant industrial site and there is no evidence that a new
.residential use would negatively impact property values. The- 2.000 Maxfield Research, Inc. study
entitled "A Study of the Relationship Between Affordable Family Rental Housing and Home Values in
the Twin Cities" is the definitive analysis of this issue in the Twin Cities. The research showed that
there is no evidence to support the claim that tax credit rental developments for families erode property
values.
A report the following year (the 2001 Workforce Housing: The Key to Ongoing Regional Prosperity
report by Maxfield Research lnc. and GVA Marquette Advisors) estimated that the Twin Cities foregoes
an .estimated $265 million in combined consumer spending and business income per year because
there is a current shortfall of workforce housing.
8
7500 \'Vest 78~f~ Street
E;diisa, ~iN
5543.9
(952) 947-3000
fay (952) 947-3030
Will this increase crime in our neighborhood?
This apartment will be professionally managed by Steven Scott Management to ensure that the
property is properly maintained. Steve. Scott Management works closely with the police departments in
the communities where they have apartments and have an excellent track record for quality
developments. The good property management policies, application process and background checks
conducted by Steven Scott. Management and relationship with the community police department will
provide significantly more control over residents than with for sale or market rate housing.
Why was the original proposed access on Pillsbury instead of on 76`h Street or 77"' Street?
Generally, transportation policy directs that access be provided for development like this on the local
streets (Pillsbury) rather than higher volume streets like 76~' Street or 77t" Street. The Comprehensive
Plan classifies 77th Street, a "Reliever Arterial" within the `A' Minor Arterial functional class. The focus
being mobility, with limited access and no on-street parking. 76`h Street is classified as a Major
Collector, which is intended to provide access from neighborhoods to other collector roadways.
Following the neighborhood meeting, our design team looked again at the access issues and met with
City staff to get their feedback. We hope that the work session will provide an opportunity to get City
feedback on the alternatives.
REVISIONS TO DEVELOPMENT PROPOSAL
Following the neighborhood meeting we made a number of significant changes to our development
proposal and we will have revised plans to present at the work session. Major changes in response to
neighborhood comments include:
1. Elimination of Pillsbury access. We heard concerns about traffic on Pillsbury, so we looked at
other access options and have eliminated this access point.
2, Eliminated apartment entrances on Pillsbury. The concept we presented at the neighborhood
meeting included entries into the individual units from Pillsbury to create an urban edge. We
heard concerns from neighbors about these entries and eliminated them from the plan.
3. Eliminated an-street parking on Pillsbury. We heard concerns that this .apartment would have
tenantsRor guests using the existing an-street parking on Pillsbury and leaving little room for
existing residents. We have eliminated the Pillsbury access and unit entries on Pillsbury,
therefore, there is little reason for tenants or guests to be on Pillsbury- and we are no longer
showing this on-street parking.
4. Added proof of parking. We have one underground parking stall per apartment unit and surface
parking for guests, but we heard concerns that this parking would not be adequate. Based on
our experience with similar developments, we are confident that we have more than enough
parking proposed. However, we have revised the plan to show proof of parking that could be
added to the northwest of the parking lot should evidence be provided that adequate parking is
not available.
9
7500 ~\~ext 78~h Street
Edina; I,IN
55439
(952) 947-3000
fax (952) 947-3030
5. Acquire additional City property. We are now proposing to expand the area of acquisition to
include the .area where the proof of parking is located. This would also reduce the density of this
project by increasing the land area and retaining the same number of units.
6. Expanded playground. We heard concerns that the planned play area would not be adequate
for the development. We have expanded this play area on the revised plans.
It is our intention to get feedback from the City at the work session about the development concepts,
including access to the site, building design, parking and any other issues that should be addressed in
our formal submittal. We intend to prepare a submittal for a public hearing at the Planning Commission
meeting in February.
In the end, the Pillsbury Commons development will foster a safe, walkable community with a new
urbanism-type character. Care is being taken in the site planning to conceal major areas of surface
parking through environmental. design. Furthermore, the site will incorporate sound landscape design
and OPTED (crime prevention through environmental design) principles. All phases of the project will
strive.to incorporate Minnesota Green Community Criteria and sustainable building design in order to
reduce energy expenditures and to enhance the health, well-being and productivity of the building
occupants.
In addition, the apartment building will be professionally managed and operated by Steven Scott
Management, a respected Twin Cities management group. Our team is committed to providing a safe,
quality living environment and look forward to working with the City of Richfield and their Crime
Prevention Programs.
Lifecycie Housing Opporfunities
Our development proposal will provide a real opportunity for housing choice in Richfield. Our project
includes 70 workforce housing units. Workforce housing is different from subsidized housing.
Workforce housing has strict guidelines and requirements for residents. In fact, before residents even
qualify to live at Pillsbury Commons, they must prove they are earning at least twice the cost of rent
and utilities. This means the people moving into Pillsbury Commons are the kind of individuals and
families Richfield can build its future on. They are the educators, healthcare associates, retaillservice
industry workers and other people who right now are working in Richfield, but don't earn enough to live
in the higher quality developments located close to their work. Pillsbury Commons fills this need for
high-quality workforce housing. We believe the new homes will also be attractive to seniors who are
looking for new, single-level living with heated parking.
These workers are in need of affordable housing opportunities. Affordable housing provides
opportunities for younger workers and senior citizens to stay in the community. Our 2011 Market Study
prepared by Joe Urban indicates that there are 1.83 jobs paying less than $41,000/year for every
affordable housing unit in the project market area. That's almost two jobs for every affordable housing
unit in the .area.
10
7500 ~~Vcst 78~ Strect
lidina; i~iN
55<139
(952) 947-3000
fix (952) 947-3030
SUMMARY
We believe that affordable housing is a community issue, not a neighborhood issue. Quality affordable
housing is the key for important community benefits-- for health and public safety, neighborhood
stability, economic development, transportation and education. Quality affordable housing means our
children have the opportunity to raise theirfamilies in the communities that they were raised in and
allows our seniors the opportunity to stay in the community. It allows our workers to live where they
work, thereby, reducing congestion. We know that unstable living situations create an environment
where children struggle in our schools, but providing safe, quality housing dramatically improves
performance.
Businesses need the workforce to survive -and the economy can't grow if the workforce has nowhere
to live. llnfortunately, same of the community's most Vital occupations (educators, healthcare, retail and !,
services, etc.) don't earn enough to live in the higher quality developments located close to their work in j
the area. That's where Pillsbury Commons fills this need. It will give young people just starting their
careers, working adults and young families the opportunity to live in Richfield in a new, high quality
development. It will provide the chance to get. s#arted in Richfield and gives them the opportunity to
save equity to buy a home in Richfield in the future.
Project Benefits:
• Provides needed workforce housing in the community
• .Provides needed. 2- and 3-bedroom new apartments in the community to replace ofd apartments
that have been demolished
• Puts this underutilized property back on the tax rolls
• The City is able to sell this vacant land at market value, which is virtually unheard of in today's
economy
• Cleans up the contaminated property
• Construction of Pillsbury Commons will provide jobs
• Approximately $65,000 in building permit fees to the City
We believe that this project is a positive addition to the. City of Richfield and we look forward to the
opportunity to continue to work with the City and the residents of Richfield to develop a plan that. the
community can be proud of and the residents can be proud to call "Home".
S' cerely,
'1
ctit.
Ronald E. Clark
CEO
Attachment: Resolution 10520
11
RESOLUTION N0. 1U520
( RESOLUTION CONSENTING T4 TWE PROCESS FOR THE CREATION OFA HOUSING
TAX INCREMENT FINANCE D[STRICT IN SUPPORT OF THE PROPOSED PILLSBURY
COMMONS MULTIFAMILY HOUSING PROJECT
WHEREAS, the City of Richfield (fhe "City"} is a municipal corporation and political
subdivision duty organized and existing under the Constitution and laws of the State of
Minnesota; and
WHEREAS, pursuant to the Constitution and laws of the State of Minnesota,
particularly Minnesota Statutes, Sections 469.174-X69.9799 et. seq., as amended, the
City acting through the Richfield Mousing and Redevelopment Authority ("HRA"} is
authorized to use fax increment financing to carry out the public purposes described
(herein and contemplated (hereby; and
WHEREAS, a propose! has been made by R.E.C., Inc. d/b/a Ron Clark
Construction and Design (the "Developer"} #o construct 70 units of multifamily housing a#
211 West 76th Street near Pillsbury Avenue in the Ciiy of Richfield, which project is to be
known as Pillsbury Commons and 100% of the units will be affordable to persons with
incomes at 60% of the area median income (the "Project"}; and
WHEREAS, the Project would be located on land that is currently owned by the City
of Richfield; and
'~. WHEREAS, the City on or about fhe date of this resolution has approved an Option
Agreement with the Developer for the safe of the sand upon which fhe Project is intended
to be built;
WHEREAS, the Developer has submitted its development proposal #o the City and
the City is supportive of continuing further consideration of the Project; and
WHEREAS, the City wishes to support the Project and directs staff to work with the
Developer to #ake the steps necessary to create a tax increment financing district for the
Project.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield
that the Cify supports the Project and, pending final determination of project eligibility,
required reviews, public input, notices and hearings, and without surrendering ifs
legislative discretion, hereby authorizes staff to proceed with the steps required to
establish a tax increment financing district for the.Project; and
BE IT FURTHER RESOLVED, that City staff, in connection with the activities
required to be undertaken by the City and the HRA, continue its analysis of the Pillsbury
Commons project, negotiate fhe terms and conditions of a development contract with the
Developer or an affiliate whose general partner is controlled by the Developer, and prepare
a development plan and tax increment financing plan for the Project, ail subject to final
determination of project eligibility, required reviews, public input, notices and hearings; and
BE IT FURTHER RESOLVED, that the City Council supports implementation of the
attached timeline for the Project (Attachment 1):
This resolution shall be in full force and effec# from and after its passage,
Passad by the City Council of the City of Richfield, innesota this 14th day of June
2411.
c~ `
eb ie Goettel, ayor
ATTEST:
Nancy Gibbs, y Cleri<
January 17, 2012
' 7Jt)t) ~'vetit 78t11 ~'itt'E:E't
t3dina, Minnes<Ita
55~t39
RE; Proposed Pillsbury Commons Development at 76`h St. and Pillsbury Ave. (952) 947-3001)
fax (952) 94%-3(130
Dear Richfield Resident:
Thank you for taking the time to attend the Neighborhood meeting on November 29, 2011. We wanted to
let you know we are continuing to work on our plans in response to some of the questions and comments
voiced at the meeting. We also wanted to clarify some facts as you hear more about our proposed
development.
What kind of housing is Pillsbury Commons?
/ Pillsbury Commons is a Workforce Housing deveioprrtent. Workforce Housing is intended to
provide affordable housing to working individuals and family and requires residents to pay 100°I°
of their rent. Units will rent for $775 - $1,075/month depending on size.
/ Pillsbury Commons is not subsidized lrotrsing. Pillsbury Commons is funded in part by the
Housing Tax Credit program (sometimes called Section 42 credits). Created under the Tax
Reform Act of 1986, the Housing Tax Credit Program is a financing program that gives income
tax incentives (e.g. income tax credits) to the corporations that invest in the development in retErrn
far their commitment to the community and their investment capital, which makes Workforce
Housing feasible. This financing program is administered in Minnesota by the Minnesota Housing
Finance Agency (MHFA}.
/ This is not a Section 8 project. Each resident must have verified income to meet the MHFA
requirements and they pay their total rent. There is no government subsidy with the tax credit
program.
• One of the units in this neighborhood is part of the Veteran's Administration program far
disabled and homeless veterans and that one unit is under the Section 8 program.
/ The MHFA Tax Credit program requires that the project remain in compliance with the Workforce
Housing program requirements for a minimum of 30 years. That means that this project could not
transition to a Section 8 project in that period. ,
Who will live in Pillsbur~Commons?
/ IVo preference is given to any person or group. The Fair Housing Act prohibits discrimination
based on: race or color, national origin, religion, sex, handicap (disability) or familial status
{inclr.iding children under the age of 18 living with parents or legal custodians; pregnant women
and people securing custody of children under 18}.
/ Prospective residents must qualify. Applicants must meet program income requirements and
must show a minimum income of two times the rent.
• .Income limits are $35,280 for a single person- $50,340 for a family of four
• The median household income in Richfield is $48,700 according to the 2010 Census.
/ Ail residents will be screened. Prospective residents must pass a 3"' party screening process
including credit, criminal and housing history checks. This screening is more rigorous than a
typical market rate rental would require and far exceeds what is required to get a mortgage to
purchase a home.
/ Rents will be competitive to senior rental complexes in the area. Pillsbury Commons will
offer a great solution for seniors wanting one-level living with heated indoor parking.
/ Will this project decrease property values? No. There is no evidence to support the notion that
this high-quality project will decrease adjacent property values. 'T'he property is currently a vacant
industrial site and there is no evidence that a new residential use would negatively impact
property values. The 2000 Maxfield Research, Inc. study entitled "A Study of the Relationship
Between Affordable Family Rental Housing and Home Values in the Twin Cities" is the definitive
analysis of this issue in the Twin Cities. The research showed that there is no evidence to support
the claim that tax credit rental developments erode property values.
s
.y't \`
`t"'"~ \~fN Builder T.icense 1# 122tr
20os Recipient i~-~a~a~.Rtaii<'larl:.com
What will Pillsbury Commons look like
The site spans from 7T Street to 76' Street, on the west side of Pillsbury Avenue however; our
current proposal is to develop only the southern portion of the site.
/ Our attractive, craftsman-style building features many architectural details that make this a
quality addition to the neighborhood. Rather than a typical 3-story building, we have designed the
building to step from 2-stories to 4-stories.
• The 2-story portion of the building facing Pillsbury Ave. provides a smooth transi#ion to the
adjacent single-family homes.
• 1"he 4-story portion of the building facing 77'h St. next to the commercial corridor provides
better screening and sound controllmitigation for' the existing homes and eliminates the need
for the noise wall in front of the building along 77'h.
• A rendering of the conceptual building plan is enclosed.
How will the property be maintained?
/ Workforce Housing is consistently maintained. The MHFA Tax Credif program requires that
the project remain in compliance with the Workforce Housing program requirements for a
minimum of 30 years. The program requires very significant financial resenres, which means that
the building and grounds will continue to be maintained to a high standard.
/ Pillsbury Commons wifl be managed and maintained ny Steven Scott Management. Steven
Scott has over 45 years of experience in managing Twin Cities properties and has been honored
with over 50 Minnesota Multi Housing Association awards including "Property of Excellence" and
"Best New Development."
Thanks again for your tune. We share your concerns for quality development and look forward to working
with the residenfs of Richfield and City of Richfield.
Sincerely,
~~
Ron Clark
Ron Clark Construction & Design
Enclosure
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Memo
To: Richfield City Council
From: Rebecca Kurtz, Ehlers
Date: January 24, 2012
Subject: Explanation of the But For Analysis and Process
In preparation for the public hearing and consideration of the 2012-1 Housing Tax Increment
Financing District, the following information summarizes how tax increment can be expended in
a project and outlines the But For Test.
Background
The City and HRA received a request on June 14, 2011, from Ron Clark on behalf of Richfield
Properties I, LP (the "Developer") for tax increment assistance for amulti-phase housing
development and adopted Resolution No. 1052 consenting to the process for creation of a housing
TIF district. It is proposed that the City and the HRA create the 2012-1 Housing Tax Increment
Financing ("TIF") District (Pillsbury Commons) on five parcels and adjacent right of way on the
7600 block of Pillsbury Ave. (This includes the north portion of the former City public works
site.)
Tax increment assistance was requested to assist with the financing gap due to land acquisition
expenses and other project costs. The project is planned to be a two phase housing development.
Phase I will consist of approximately 70 units of affordable rental housing. Phase II will also
consist of housing; however, the number and type of units will be determined based on future
market demands.
What Expenses Can be Paid with TIF?
It is proposed that tax increment from the development be provided in the form of a Pay-as-you-
go Note to the developer to reimburse for land acquisition, site improvements, and other TIF
qualifying improvements. In general, tax increment revenue can be used to pay for costs,
including but not limited to, acquisition, demolition, site improvements, public
infrastructure/utilities, streets and sidewalks and interest. In addition, for housing projects,
increment can be used to pay for building expenses. The HRA is allowed to retain up to 10
percent of the increment for administration expenses, including consultant and staff time,
reporting expenses, and annual maintenance of the TIF District.
What is the But For Test?
It is Ehlers' experience that there are two questions that cities evalutate when providing assistance
to a development. The first is what is referred to as the But For Analysis. This simply says that
FREERS
LEADERS IN PUBLIC PENANCE
www,e~lers-inc.cam:
Minnesota phone 651-697-8500 3060 Centre Pointe Drive
Offices also in Wisconsin and Illinois fax 651-697-$555 Roseville, MN 55113-1722
tol! free 1300-552-1171
the project would not go forward without assistance. In most cases, the answer to this question
does not require numerical analysis but relies on specific economic and site factors affecting the
development.
After it is determined that the development needs assistance, the second question is "how much."
A variety of methods can be used to analyze this question, depending on a number of factors.
Typically, Richfield has requested a pro forma analysis to determine the amount of assistance.
This analysis determines the amount of return on equity that the developer will receive with and
without the use of assistance. Real estate developments typically are highly speculative and risky
ventures for the investors. By using a pro forma and analyzing the project without assistance and
with assistance, a model can be developed to determine the level of assistance required to reach a
return on equity that is comparable to the market return.
It is important to understand that when evaluating these types of transactions, no one can be
totally accurate as to the eventual returns or outcomes of the project. The simple objective is to
try within certain variables to come up with an analysis that provides a comfort level to all those
participating in the project.
The City and HRA have asked Ehlers to review the Developer's feasibility analysis for the
project to determine if the level of financial assistance requested is needed to make the project
financially feasible. Ehlers is working with City staff and the Developer to gather information
and continue to analyze the document and prepare a But For Analysis to determine that the level
of assistance is reasonable based on the current market conditions and the financial assumptions.
Council Review and Consideration
Per the requirements of Minnesota Statutes, a summary of the But For Analysis, including both a
numerical analysis and specific economic and site factors affecting the development, will be
provided to the Council for review prior to the public hearing to adopt the TIF District. As part of
the process to adopt the TIF Plan and approve the TIF District, the Council will be required to
hold a public hearing and consider four findings. In general, the findings are summarized as
follows:
^ The TIF District is a housing district as defined in M.S., Section 469.174, Subd. 11.
^ The proposed development, in the opinion of the City Council, would not reasonably be
expected to occur solely through private investment within the reasonably foreseeable
future. (This is known as the But For finding.)
^ The TIF Plan conforms to the general plan for the development or redevelopment of the
municipality as a whole.
^ The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City
as a whole, for the development or redevelopment of Richfield Redevelopment Project
Area by private enterprise.
Ehlers will continue to work with the City and Developer to gather detail information and
complete the But For Analysis, which will be presented as part of the information for considering
approval of the TIF Plan. In the meantime, please do not hesitate to contact me if you have
questions.
CITY COUNCIL MINUTES
~' _ ^ Richfield, Minnesota
Special City Council Worksession
January 10, 2012
CALL TO ORDER
The meeting was called to order by Mayor Pro Tempore Elliott at 7:00 p.m. in the
Bartholomew Conference Room.
ROLL CALL
Council Members Pat Elliott, Mayor Pro Tempore; Sue Sandahl; Fred Wroge;
Present: and Tom Fitzhenry.
Council Members
Absent.' Debbie Goettel, Mayor.
Staff Present: Steven L. Devich, City Manager; Mike Eastling, Public Works Director; John
Stark, Community Development Director; Jim Topitzhofer, Recreation
Services Director; Kristin, Asher, City Engineer; Corrine Heine, City Attorney;
and Cheryl Krumholz, Executive Coordinator.
Item #1 DISCUSSION REGARDING Mn/DOT 1-494 PROJECT PRESENTATION FOR
MUNICIPAL CONSENT
Public Works Director Eastling discussed the 1-494 project history, key issues and municipal
consent process. Key issues include the Xerxes Avenue bridge design and 1991-2001
Environmental Impact Statement (26' transit corridor) and auxiliary lane/managed lanes.
Mn/DOT representative Scott Pedersen presented an overview of the upcoming construction
project, including goals, schedule and construction phases. He also discussed the process used to
obtain neighborhood feedback for other projects in the metropolitan area regarding installation of a
sound wall.
Mr. Eastling concluded that staff will draft a resolution based on comments received this
evening which will be presented to the Transportation Commission. Then, the Transportation
Commission will make their recommendation to the City Council for their consideration.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 6:57 p.m.
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Meeting
January 10, 2012
CALL TO ORDER
The meeting was called to order by Mayor Pro Tempore Elliott at 7:00 p.m.
ROLL CALL
Members Present: Pat Elliott, Mayor Pro Tempore; Sue Sandahl; Fred Wroge; and Tom
Fitzhenry.
Members Present: Debbie Goettel, Mayor.
Staff Present: Steven L. Devich, City Manager; Mike Eastling, Public Works Director; Jim
Topitzhofer, Recreation Services Director; Karen Barton, Community
Development Manager; Pam Dmytrenko, Assistant City Manager;
Christopher Regis, Finance Manager; Corrine Heine, City Attorney; and
Cheryl Krumholz, Executive Coordinator.
M/VVroge, S/Sandahl to excuse Mayor Goettel from the January 10, 2012 Special City
Council Worksession and January 10, 2012 Regular City Council Meeting.
Motion carried 3-0. (Fitzhenry temporarily out of the Chambers)
OPEN FORUM
Ann Dougherty, 6844 James Avenue, spoke in support of the proposed Pillsbury Commons
project because of the need for affordable housing.
Camillo DeSantis, 6508 Newton Avenue, expressed concern of how the Pillsbury Commons
project is presented by those who are in opposition and requested the City Council keep an open
mind to consider what is needed for the community in fairness to housing all income levels.
PRESENTATION OF COLORS AND PLEDGE OF ALLEGIANCE
Mayor Pro Tempore Elliott led the audience in the Pledge of Allegiance.
Council Meeting Minutes -2- January 10, 2012
APPROVAL OF MINUTES
M/Sandahl, S/Wroge to approve the minutes of (1) Special City Council Worksession of
December 6 2011 • (2) Special City Council Worksession of December 13, 2011; and (3) Regular
City Council Meeting of December 13, 2011.
Motion carried 4-0.
Item #1 PRESENTATION OF CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE
IN FINANCIAL REPORTING FROM GOVERNMENT FINANCE OFFICERS
ASSOCIATION TO CITY OF RICHFIELD FINANCE MANAGER, CHRIS REGIS
Mayor Pro Tempore Elliott presented the certificate to Finance Manager Regis.
Item #2 COUNCIL DISCUSSION
• SCHEDULE DATES(S) FOR CITY ADVISORY COMMISSION AND HRA
COMMISSIONER APPLICANT INTERVIEWS
• HATS OFF TO HOMETOWN HITS
The City Council scheduled advisory commission and HRA Commissioner applicant
interviews for Sunday, January 22, 2012 starting at 1 p.m. Applicants unavailable for interview will
be accommodated on a case-by-case basis.
The City Council requested the recruitment for HRA Commissioner be open until end of day
January 18, 2012.
Council Member Sandahl announced the Richfield Public Art Tour.
Council Member Wroge referenced the proposed Pillsbury Commons project communication
piece recently distributed by residents in opposition to the project. He expressed his concerns that
the project has changed from its original presentation of homeowner townhomes. He clarified that
one unit is Section 8 assistance and three units are for homeless families. He also referenced an
email received from Planning Commission Chair, Rick Jabs, stating that decisions are based upon
facts.
Mayor Pro Tempore Elliott stated he is enthusiastic about the passion displayed on both
sides regarding the proposed Pillsbury Commons project and requested the communications be
factual.
Council Member Fitzhenry encouraged the public to use the resources available, i.e.
rebroadcast of City Council, HRA and Planning Commission meetings on Channel 16, to obtain the
facts about discussions regarding the proposed Pillsbury Commons project.
Council Member Fitzhenry also encouraged Richfield residents to become involved with
addressing airport noise.
Item #5 COUNCIL APPROVAL OF AGENDA
Council Meeting Minutes -3- January 10, 2012
M/Sandahl, S/Fitzhenry to approve the agenda.
Motion carried 4-0.
Item #4 CONSENT CALENDAR
A. Consideration of approval of designating Assistant City Manager or available Department
Director as Acting City Manager in 2012 in event City Manager is absent from City S.R.
No. 1
B. Consideration of approval of resolution regarding City Council Member attendance at City
Council meetings for 2012 S.R. No. 2
RESOLUTION NO. 10597
RESOLUTION REGARDING ATTENDANCE
BY COUNCIL MEMBERS AT COUNCIL MEETINGS
This resolution appears as Resolution No. 10597.
C. Consideration of approval of resolution designating Richfield Sun-Current as official
newspaper for City of Richfield for 2012 S.R. No. 3
RESOLUTION NO. 10598
RESOLUTION DESIGNATING AN OFFICIAL NEWSPAPER FOR 2012
This resolution appears as Resolution No. 10598.
D. Consideration of approval of resolutions designating official depositories, including approval
of collateral, for City of Richfield for 2012 S.R. No. 4
RESOLUTION NO. 10599
RESOLUTION DESIGNATING U.S. BANK
A DEPOSITORY OF FUNDS OF THE CITY OF RICHFIELD FOR THE YEAR 2012
RESOLUTION NO. 10600
RESOLUTION DESIGNATING CERTAIN SAVING AND LOAN ASSOCIATIONS, BANKS AND
CREDIT UNIONS AS DEPOSITORIES FOR THE DEPOSIT AND INVESTMENT OF
CITY FUNDS IN 2012
RESOLUTION NO. 10601
RESOLUTION DESIGNATING CERTAIN FINANCIAL
INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF
CITY OF RICHFIELD FUNDS IN 2012
These resolutions appear as Resolution Nos. 10599, 10600 and 10601.
E. Consideration of approval of resolution authorizing use of City credit cards by City
employees otherwise authorized to make purchases on behalf of City S.R. No. 5
RESOLUTION NO. 10602
Council Meeting Minutes -4- January 10, 2012
RESOLUTION AUTHORIZING THE USE OF CREDIT CARDS BY CITY EMPLOYEES
OTHERWISE AUTHORIZED TO MAKE PURCHASES ON BEHALF OF THE CITY OF RICHFIELD
FOR THE YEAR 2011
This resolution appears as Resolution No. 10602.
F. Consideration of approval of rescinding Resolution No. 9806 and adopting resolution
establishing updated Public Purpose Expenditure Policy S.R. No. 6
RESOLUTION NO. 10603
RESOLUTION ESTABLISHING AN UPDATED PUBLIC PURPOSE EXPENDITURES POLICY
This resolution appears as Resolution No. 10603.
G. Consideration of approval of resolution accepting $50 donation from Minneapolis-Richfield
American Auxiliary Unit 435 S.R. No. 7
RESOLUTION NO. 10604
RESOLUTION AUTHORIZING CITY OF RICHFIELD TO ACCEPT A DONATION OF $50 FROM
THE MINNEAPOLIS-RICHFIELD AMERICAN LEGION AUXILIARY UNIT 435
This resolution appears as Resolution No. 10604.
H. Consideration of approval of Richfield Municipal Center change order report for aggregate
net effect of $7,847 in items included within project budget S.R. No. 8
I. Consideration of approval of purchase of brush chipper (Vermeer BC 2100XL) from
Vermeer of Burnsville for use by Forestry Maintenance Division in amount of $108,280.40
S.R. No. 9
J. Consideration of approval of 2012 contract with City of Bloomington, using federal grant
funds, for public health emergency preparedness/bioterrorism services and development of
response system S.R. No. 10
K. Consideration of approval of continuation of agreement with City of Bloomington for public
health services for City of Richfield for 2012 S.R. No. 11
L. Consideration of approval of resolution authorizing City of Richfield to participate in
Minnesota GreenStep Cities Program S.R. No. 12
RESOLUTION NO. 10605
RESOLUTION AUTHORIZING THE CITY OF RICHFIELD TO PARTICIPATE IN THE
MINNESOTA GREENSTEP CITIES PROGRAM
This resolution appears as Resolution No. 10605.
M. Consideration of approval of resolution authorizing Agency Agreement No. 93492 between
Mn/DOT and City of Richfield authorizing Mn/DOT to pass through federal funds for
previous planning and design of two bike routes in Richfield S.R. No. 13
RESOLUTION NO. 10606
RESOLUTION AUTHORIZING ACCEPTANCE OF AGENCY AGREEMENT NO. 93492
BETWEEN THE MINNESOTA DEPARTMENT OF TRANSPORTATION AND THE CITY OF
RICHFIELD FOR FEDERAL PARTICIPATION IN TWO NON-MOTORIZED TRANSPORTATION
PILOT PROGRAM PROJECTS
Council Meeting Minutes -5- January 10, 2012
This resolution appears as Resolution No. 10606.
N. Consideration of approval of Richfield Municipal Center Room Reservation Policy and
Guidelines, rescinding current Resolution No. 6237 regarding use of Council Chambers,
and resolution amending Appendix D to reflect new fees and charges S.R. No. 14
RESOLUTION NO. 10607
RESOLUTION ESTABLISHING 2012 LICENSE, PERMIT AND MISCELLANEOUS FEES
PURSUANT TO THE PROVISIONS OF APPENDIX D OF THE ORDINANCE CODE OF THE
CITY OF RICHFIELD RESCINDING RESOLUTION NO. 10596
This resolution appears as Resolution No. 10607.
O. Consideration of approval of resolution authorizing purchase of real property at 6420-17th
Avenue S.R. No. 15
RESOLUTION NO. 10608
RESOLUTION AUTHORIZING THE PURCHASE OF REAL PROPERTY
LOCATED AT 6420 17th AVENUE
This resolution appears as Resolution No. 10608.
MNVroge, S/Sandahl to approve the Consent Calendar.
Motion carried 4-0.
Item #5 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT
CALENDAR
None.
Item #6 CONSIDERATION OF SECOND READING OF AMENDMENT TO RICHFIELD C
CODE APPENDIX D ESTABLISHING FEE SCHEDULE FOR "SKETCH PLAN
REVIEW" AND RESOLUTION AUTHORIZING SUMMARY PUBLICATION OF
ORDINANCE S.R. NO. 16
Council Member Wroge presented Staff Report No. 16.
M/Wroge, S/Elliott that this constitute s
City Code Appendix D establishing fee schedu
authorizing summary publication of ordinance:
RESOLUTION NO. 10609
RESOLUTION APPROVING SUMMARY PUBLICATION OF AN ORDINANCE AMENDING
APPENDIX D OF THE RICHFIELD CITY CODE TO ESTABLISH A FEE SCHEDULE FOR
SKETCH PLAN REVIEW
Motion carried 4-0. This resolution appears as Resolution No. 10609.
Council Meeting Minutes -ti- January 10, 2012
Item #7 CONSIDERATION OF SECOND READING OF ORDINANCE AMENDING
SUBSECTION 514.05, SUBDIVISIONS 3 AND 4 AND SUBSECTION 518.05,
SUBDIVISIONS 3 AND 4 RELATED TO ACCESSORY STRUCTURES ON
RESIDENTIAL LOTS OF 15,000 SQUARE FEET OR MORE S.R. NO. 17
Mayor Pro Tempore Elliott presented Staff Report No. 17.
M/Elliott, S/Sandahl that this constitute second reading of Bill No. 2012-2 Subsection
514 05 Subdivisions 3 and 4 and Subsection 518.05 Subdivisions 3 and 4 related to accessory
structures on residential lots of 15,000 square feet or more.
Motion carried 4-0.
Item #8 CONSIDERATION OF RESOLUTION AUTHORIZING 2012 SOCIAL SERVICE
AGENCY FUNDING RECOMMENDATIONS S.R. NO. 18
Council Member Sandahl presented Staff Report No. 18.
David Sumnicht, 6620 Logan Avenue, VEAP representative, apologized for
the tardiness of the VEAP application and encouraged the City Council to approve
the alternate resolution that includes allocations to VEAP and READY.
Mayor Pro Tempore Elliott suggested approving the alternate resolution that
included VEAP and READY allocations with a strong indication of meeting deadlines
in the future.
Council Member Sandahl agreed that deadlines should be honored.
M/Sandahl, S/Fitzhenry that the following alternate resolution be adopted and that it be
made part of these minutes:
RESOLUTION NO. 10611
RESOLUTION APPROVING THE 2012 SOCIAL SERVICE AGENCY FUNDING
RECOMMENDATIONS AND AUTHORIZING THE CITY MANAGER TO EXECUTE
AGREEMENTS FOR SERVICE WITH THOSE AGENCIES FUNDED BY THE CITY
Motion carried 4-0. This resolution appears as Resolution No. 10611:
Item #9 CONSIDERATION OF RESOLUTION APPROVING AMENDMENT TO 2011-2012
LABOR AGREEMENT WITH INTERNATIONAL UNION OF OPERATING
ENGINEERS S.R. NO. 19
Council Member Fitzhenry presented Staff Report No. 19.
M/Fitzhenry, S/Sandahl that the following resolution be adopted and that it be made part of
these minutes:
RESOLUTION N0.10612
Council Meeting Minutes -7- January 10, 2012
RESOLUTION DESIGNATING CITY'S CONTRIBUTION TOWARDS HEALTH AND DENTAL
INSURANCE PREMIUMS AND SALARY INCREASE FOR EMPLOYEES COVERED BY THE
INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 49
Motion carried 4-0. This resolution appears as Resolution No. 10612.
Item #10 CONSIDERATION OF RESOLUTION APPROVING 2012 GENERAL SERVICES,
MANAGEMENT AND SPECIALIZED SALARY COMPENSATION PLANS S.R. NO.
20
Council Member Fitzhenry presented Staff Report No. 20.
M/Fitzhenry, S/Elliott that the followina resolutions be adopted and that they be made part of
these minutes:
RESOLUTION NO. 10613
RESOLUTION RELATING TO THE 2012 GENERAL SERVICES
SALARY COMPENSATION PLAN
RESOLUTION NO. 10614
RESOLUTION RELATING TO THE 2012 MANAGEMENT
SALARY COMPENSATION PLAN
RESOLUTION NO. 10615
RESOLUTION RELATING TO THE 2012 SPECIALIZED PAY PLAN
Motion carried 4-0. These resolutions appear as Resolution Nos. 10613,
10614 and 10615.
Item #11 CITY MANAGER'S REPORT
City Manager Devich explained there were gas leaks detected and repaired recently in the
area of 66th Street and First and Second Avenues and Rae Drive.
Item #12 CLAIMS AND PAYROLLS
M/Wroge, S/Elliott that the followina claims and payrolls be approved:
U.S. Bank 12/27/2011
A/P Checks: 209157-209629 $ 1,816,955.09
Payro11:80496-80803 $ 517,986.75
TOTAL $ 2,334,941.84
U.S. Bank 1/10/12
A/P Checks: 209630-209974 $ 1,128,081,35
Council Meeting Minutes -8- January 10, 2012
Payroll: 80804-81108
TOTAL
Motion carried 4-0.
OPEN FORUM
None.
ADJOURNMENT
$ 515,758.88
$ 1,643,840.23
The City Council meeting was adjourned by unanimous consent at 8:08 p.m.
Date Approved: January 24, 2012
Pat Elliott
Mayor Pro Tempore
Cheryl Krumholz
Executive Coordinator
Steven L. Devich
City Manager
AGENDA SECTION: CONSENT
AGENDA ITEM # 3A
REPORT # 21
~~ STAFF REPORT
CITY COUNCIL MEETING
.TANUARY 24, 2012
REPORT PREPARED BY:
JULIE URBAN/MICHELLE LEWIS,
HOUSING SPECIALIST
NAME TITLE
DEPARTMENT DIRECTOR
REVIEW:
REVIEWED BY CITY
MANAGER:
~~-- ~~`~
/,•', . SIGNATURE
~~
_ _ ~ .... J
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a resolution authorizing the acquisition of 6315 16th Avenue.
I. RECOMMENDED ACTION:
By Motion: Adopt a resolution authorizing the purchase of real
ro ert located at 6315 16th Avenue.
II. BACKGROUND
The property at 6315 16th Avenue was listed for sale at $80,000 through the
Multiple Listing Service (MLS) on December 30, 2011. The property is vacant and
is bank-owned as a result of foreclosure.
The property is located in the Cedar Avenue Corridor Redevelopment Area, as
identified in 2004, and is a prime candidate for acquisition by the City to facilitate the
future construction of Richfield Parkway and the eventual redevelopment of the
Cedar Point Housing Redevelopment Area. The 6300 and 6400 blocks of 17th
Avenue are currently occupied by 29 single-family houses, but the area is zoned
MR-3, High Density Residential.
Multiple offers have been made on the property. A purchase price of $80,000 was
offered by the City, contingent upon approval by the Housing and Redevelopment
Authority (HRA) on January 17, 2012 and the City Council on January 24, 2012.
01242012 6315 16th Avenue South Acquisition
Funds remain from the Airport Noise Abatement Program (ANAP) and the Cedar
Avenue Mitigation Area (CAMA) to purchase this property, but are insufficient to
cover the entire purchase price and demolition. The HRA authorized the transfer of
additional funds from the Development Fund to cover the remaining cost of
acquisition and removal of the property at their January 17, 2012 meeting.
Due to the low listing price, multiple offers have been made for the property. Staff is
requesting authorization to increase the City's offer up to $100,000 in an effort to
secure the property if the situation warrants an increase from the original offer of
$80,000.
III. BASIS OF RECOMMENDATION
A. POLICY
• The 2009 Richfield Comprehensive Plan Housing Goals and Policies
direct the policy work related to Land Use and Community Facilities.
Specifically, this acquisition is supported and encouraged by the
following goals and policies, as stated in the 2009 Richfield
Comprehensive Plan.
o Goal: Maintain and enhance the "urban hometown"
character of Richfield.
^ Policies:
^ Maintain a housing supply that meets changing
needs while sustaining the integrity of existing
neighborhoods.
^ Develop residential standards (scale, density,
etc.) for redevelopment areas that create
neighborhood character.
^ Maintain and provide quality amenities and a safe
living environment.
o Goal: Beyond the City Center, develop identifiable
nodes, corridors and gateways throughout the
community.
^ Facilitate an intense mixed pattern of regional and
community-oriented land uses along regional
corridor routes including I-494 and Cedar Avenue.
^ Encourage a mix of uses that serve a market in
and around Richfield in community commercial
nodes.
^ Create meeting places in multi-unit complexes to
allow for interaction between its residents and
between its residents and surrounding neighbors.
^ Improve gateways to create a visual means of
welcoming people to Richfield.
• The Comprehensive Plan identifies the property as High Density
Residential and the property is zoned MR-3 (high density residential).
• In 2004 the .City completed a redevelopment master plan for the
Cedar Avenue Corridor area. The area in-the master plan, including
this property, are impacted by the noise generated from the new
north/south runway built at the adjacent airport.
B. CRITICAL TIMING ISSUES
• The property is lender-owned and listed for sale on the MLS.
• As of the writing of the staff report, another offer was accepted by the
lender; however, the person making that offer is reconsidering the
purchase given the future plans for the area. Authorization to
purchase is being sought in the event that the City's offer is eventually
accepted.
C. FINANCIAL
• A combination of funds from the ANAP and CAMA programs and
funds transferred from the HRA would cover the purchase price and
closing costs to purchase the property.
• The HRA authorized the transfer of funds up to $55,000 on January
17, 2012 to assist with acquisition and demolition.
• No City General Fund revenues would be used for the purchase.
• Hennepin County Property Tax lists an estimated market value of
$160,000 for the property for taxes payable 2012.
D. LEGAL
• The Purchase Agreement is contingent upon the City Council's
approval of the attached resolution.
• The City of Richfield is the purchaser.
E. ENVIRONMENTAL CONSIDERATIONS
• There are no known environmental conditions that would affect the
purchase.
IV. ALTERNATNE RECOMMENDATION(S~
• Do not acquire the property.
V. ATTACHMENTS
• Resolution
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
3A
RESOLUTION NO.
RESOLUTION AUTHORIZING THE PURCHASE OF REAL PROPERTY
LOCATED AT 6315 16th AVENUE
WHEREAS, the City of Richfield, Minnesota (the "City") has considered the
purchase of 6315 16th Avenue with Airport Noise Abatement Funds and Cedar Avenue
Mitigation Area for an amount not to exceed $100,000. The property is legally described
as:
6315 16th Avenue South
Lot 3, Block 1, Iversons 2nd Addition, Hennepin County
(Abstract Property)
WHEREAS, the City proposes to hold the property for the future redevelopment in
the Cedar Avenue Corridor area; and
WHEREAS, the City of Richfield has submitted a Purchase Agreement to the Seller
contingent upon City Council approval;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Richfield, Minnesota as follows:
1. The City Manager and Mayor are authorized to take those actions necessary to
purchase 6315 16th Avenue for an amount not to exceed $100,000 plus legal and
closing costs.
Adopted by the City Council of the City of Richfield, Minnesota this 24th day of
January, 2012.
Debbie Goettel, Mayor
ATTEST:
Nancy Gibbs, City Clerk
AGENDA SECTION:
AGENDA I i Eivl #
REPORT #
STAFF REPORT
CITY COUNCIL MEETING
.TANUARY 24, 2012
RESOLDTIONS
5
22
JESSE SWENSON,
REPORT PREPARED BY: HUMAN RESOURCES COORDINATOR
NAME, TITLE
DEPARTMENT DIRECTOR
REVIEW:
SIGNATURE
REVIEWED BY CITY
MANAGER: w
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a resolution approving the contract with Police Officers and Detectives LELS
Local 123 for the contract period Janua 1, 2012 throu h December 31, 2013.
I. RECOMMENDED ACTION:
By Motion: Adopt the resolution approving the provisions of the
2012-2013 labor agreement with the Police Officers and Detectives
LELS 123 bargaining unit and authorize the City Manager to execute
the agreement.
II. BACKGROUND
City staff has completed labor negotiations with the Police Officers and Detectives
LELS 123 (Union). The provisions of the 2012-2013 labor agreement cover all the
employees in this Union. There are thirty-one employees represented in this
bargaining unit.
The tentatively approved settlement includes the following significant changes:
Wages
A one percent wage adjustment effective January 1 2012, with an additional one
percent increase effective July 1 2012.
A two percent wage adjustment effective the first full pay period of 2013.
0124LELS 123 contract
Effective at the ratification of the contract, compensation for the special assignment
of Hennepin County Violent Offender Task Force will receive monthly compensation
at $225 per month, the same rate as our current SIU officers. There is currently one
police officer in this special assignment.
Field Training Officer rate of pay will increase $.10 in 2012 to $2.35 per hour and an
additional $.10 in 2013 to $2.45 per hour. This rate of pay is only received if an
officer is conducting field training for a new department officer.
Health Insurance
A $0 increase to the Employer health insurance contribution which provides full
coverage at the High Option plan for single Employee at $616.50 per month, $915
per month for Employee plus spouse or Employee plus child(ren) coverage and
$965 per month for Employee plus family coverage. For Employees who select the
single tier $2500 High Deductible Health Plan option, the Employer will contribute a
maximum of $250 per month into the Employee's Health Savings Plan. The City
received a decrease in health insurance premiums for 2012 from the new carrier,
Blue Cross Blue Shield. The entire savings was passed on to the employees in lieu
of an increase in City contributions.
A $2 increase to the Employer contribution for Employee single dental insurance
coverage at $40 per month.
Clothing Allowance
An increase of $25 in clothing allowance from $775 to $800 per year per officer in
2012, and an additional $25 increase to $825 in 2013.
College Incentive
A $.10 per college credit increase in 2012 and an additional $.10 per credit increase
in 2013.
Vacation Leave Sell Back
Effective January 1, 2012, the maximum vacation leave sell back will be increased
from 40 hours to 48 hours.
III. BASIS OF RECOMMENDATION
A. POLICY
• The City has met and negotiated in good faith with the Union and its
representatives and is bound under the Public Employer's Labor
Relations Act to meet and bargain over the terms and conditions of
employment.
• The proposed settlement for the health and dental provisions is
identical to those provided to non-union City employees. The City has
a long history of providing the same level of insurance benefits to all
eligible City employees.
The wage settlement and health insurance provision is well within. the
range for other comparable bargaining groups in similar metro cities.
The vast majority of Logis groups passed the health insurance
premium savings onto their employees.
This is one of two contract settlements for 2012.
B. CRITICAL TIMING ISSUES
• In order to allow the City's accounting personnel to modify payroll
records in a timely manner for 2012 wages and benefits, it is
recommended that the City Council act on January 24, 2012 to adopt
the attached resolution providing for contract changes, effective
January 1, 2012.
C. FINANCIAL
• One percent wage increase effective January 1 2012 and one percent
wage increase effective July 1 2012, for contract year 2012. A two
percent wage increase effective the first full pay period of 2013.
• $2 per month increase in Employer monthly contribution towards
employee single dental insurance in 2012.
• A $25 increase in clothing allowance to $800 per year in 2012 and an
additional $25 increase in 2013 to $825 per year.
• A $.10 increase in 2012 and 2013 per credit for college incentive pay,
which 27 of the 31 officers currently receive.
• A $.10 per hour increase in 2012 and 2013 for Field Training Officer
pay.
• Payment for the Violent Offender Task Force officer at a rate of $225
per month.
D. LEGAL
• If the terms of this agreement are not approved, further negotiation
and/or mediation will be necessary.
E. ENVIRONMENTAL CONSIDERATIONS
• NA
IV. ALTERNATIVE RECOMMENDATION(S~
• Do not approve the terms of this agreement and prepare for further
negotiation and/or mediation.
• Defer discussion to another date.
V. ATTACHMENTS
• Resolution
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
~'~
RESOLUTION NO.
RESOLUTION APPROVING LABOR AGREEMENT BETWEEN THE
CITY OF RICHFIELD AND
LAW ENFORCEMENT LABOR SERVICES (EELS), LOCAL 123
BARGAINING UNIT FOR THE YEAR 2012 and 2013
WHEREAS, the City Manager and the Richfield Police Officers and Detectives
EELS Local 123 have reached an understanding concerning conditions of employment for
year 2012 and 2013; and
WHEREAS, it would be inappropriate to penalize EELS Local 123 members who
have negotiated in good faith; and
WHEREAS, the City Ordinance requires that contracts between the City and the
exclusive representative of the employees in an appropriate bargaining unit shall be
completed by Council resolution.
NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby approve
the Labor Agreement between the City of Richfield and EELS Local 123 Bargaining Unit for
year 2012 and 2013, under the provisions of the Labor Agreement to be implemented,
effective January 1, 2012 and authorize the City Manager to execute the contract.
Adopted by the City Council of the City of Richfield, Minnesota this 24th day of
January 2012.
Debbie Goettel Mayor
ATTEST:
Nancy Gibbs City Clerk
AGENDA SECTION: RESOLUTIONS
AGENDA ITEM # 6
REPORT # 23
J STAFF REPORT
CITY COUNCIL MEETING
.TANUARY 24, 2012
REPORT PREPARED BY: JESSE SWENSON
HUMAN RESOURCES COORDINATOR
NAME, TITLE
DEPARTMENT DIRECTOR
REVIEW: i' //
GNATURE
REVIEWED BY CITY ~ - ~
MANAGER: r
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a resolution pertaining to filing of the Pay Equity Report with the Minnesota
Mana ement and Bud et De artment.
I. RECOMMENDED ACTION:
By Motion: Adopt the resolution pertaining to filing of the Pay Equity
Report with the Minnesota Mana ement and Bud et Department.
II. BACKGROUND
Minnesota Statutes require that every municipality file a report with the Minnesota
Management and Budget Department, formerly the Minnesota Department of
Employee Relations (DOER), to indicate equitable pay relationships between female
and male employees. The City of Richfield filed its last Pay Equity Report in January
2009. The Minnesota Legislature requires the reporting of Pay Equity every three
years. The City's next reporting deadline will be January 31, 2015.
The City has completed its work on the Pay Equity Report for the period ending
December 31, 2011 and requires the Mayor's signature before submission to the State
of Minnesota. The data compiled for this report is done in accordance with strict
standards determined by the Minnesota Management and Budget Department and is
reported in a summary format for submission to the State. The preliminary results
indicate that the City continues to be in compliance with the Minnesota Pay Equity Act.
However, the State will make an official determination after the report is analyzed.
It is important to note that of the three tests that State requires a passing score, the
City only marginally passed the salary range test. Because of this, staff plans to bring
back to the Council at the first meeting of February 2012 a revised 2012 General
Services pay plan. The revised pay plan will eliminate the original pay step for GS1
and GS2 employees, which are predominantly female positions. This change to the
pay plan will ensure that in future pay equity testing the City will be in compliance with
the salary range test.
III. BASIS OF RECOMMENDATION
A. POLICY
• The City of Richfield must file a Pay Equity report in order to comply with
the Pay Equity Act. A Pay Equity report is filed every three years.
B. CRITICAL IssuEs
• The report has been completed and, according to assessment
information provided by the Minnesota Management and Budget
Department, indicates that the City's male and female pay relationships
are in compliance with the Pay Equity Act.
C. FINANCIAL
• Any reports not received by the State of Minnesota on or before January
31, 2012 will be found out of compliance and subject to a monetary
penalty. The penalty is a 5 percent reduction in state aid payments or
$100 per day, whichever is greater.
D. LEGAL
• The City must file a report with the State of Minnesota on or before
January 31, 2012 based on data as of December 31, 2011.
E. ENVIRONMENTAL CONSIDERATIONS
• None
IV. ALTERNATIVE RECOMMENDATION(S~
• No alternative is recommended. The report is based on actual data and must
be filed with the State in accordance with the statutory timeline.
V. ATTACHMENTS
• Resolution
Pay Equity statistical findings
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
RESOLUTION NO. ~ f
RESOLUTION PERTAINING TO FILING OF THE PAY EQUITY REPORT WITH
THE MINNESOTA MANAGEMENT AND BUDGET DEPARTMENT
WHEREAS, State statutes require that every municipality file a report with the
Minnesota Management and Budget Department once every three years to indicate equitable
pay relationships between male and female employees; and
WHEREAS, this jurisdiction is submitting a pay equity implementation report to the
Minnesota Management and Budget Department as required by the Local Government Pay
Equity Act, Minnesota Statutes 471.991 to 471.999; and
WHEREAS, this report has been completed and seems to indicate that Richfield male
and female pay relationships are in compliance with the Pay Equity Act; and
WHEREAS, Richfield must file a report with the State of Minnesota on or before
January 31, 2012 based on data as of December 31, 2011.
NOW, THEREFORE, BE IT RESOLVED that the City shall accept the findings of the Pay
Equity Report and forward it to the Minnesota Management and Budget Department.
Adopted by the City Council of the City of Richfield, Minnesota this 24th day of January
2012.
Debbie Goettel, Mayor
ATTEST:
Nancy Gibbs, City Clerk
Compliance Report
~a
Jurisdiction: Richfield Report Year: 2012
6700 Portland Avenue South Case: 1 - 2011 DATA (Private (Jur Only))
Richfield MN 55423
Contact: Jesse Swenson Phone: (612) 861-9704 E-Mail: jswenson@cityofrichfield.org
The statistical analysis, salary range and exceptional service pay test results are shown below. Part I is general information
from your pay equity report data. Parts II, III and IV give you the test results.
For more detail on each test, refer to the Guide to Pay Equity Compliance and Computer Reports.
I. GENERAL JOB CLASS INFORMATION
# Job Classes
# Employees
Avg. Max Monthly
Pay per employee
II. STATISTICAL ANALYSIS TEST
A. Underpayment Ratio = 89.44
Male Female Balanced All Job
Classes Classes Classes Classes
40 42 7 89
142 75 27 244
5,499.96 4,525.05 5,014.26
Male
Classes
a. # At or above Predicted Pay 17
b. # Below Predicted Pay 23
c. TOTAL 40
d. % Below Predicted Pay 57.50
(b divided by c = d)
"(Result is % of male classes below predicted pay divided by % of fer
B. T-test Results
Female
Classes
15
27
42
64.29
Hale classes below predicted pay.)
Degrees of Freedom (DF) = 215 Value of T = 1.455
a. Avg. dill. in pay from predicted pay for male jobs = ($10)
b. Avg. dill. in pay from predicted pay for female jobs = ($88)
III. SALARY RANGE TEST = 80.52 (Result is A divided by B)
A. Avg. # of years to max salary for male jobs = 3.84
B. Avg. # of years to max salary for female jobs = 4.77
IV. EXCEPTIONAL SERVICE PAY TEST = 103.90 (Result is B divided by A)
A. % of male classes receiving ESP 27.50
B. % of female classes receiving ESP 28.57
'(If 20% or less, test result will be 0.00)
AGENDA SECTION: OTHER BUS.
AGENDA ITEM # 7
REPORT # 24
r
STAFF REPORT
CITY COUNCIL MEETING
JANUARY 24, 2012
REPORT PREPARED BY:
JIM TOPITZHOFER, RECREATION
SERVICES DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR
REVIEW:
REVIEWED BY CITY
MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of approval of the attached Amendment to the Agreement for Management
Services with Wheel Fun Rentals, LLC to provide management services for Adventure
Gardens Mini-Golf.
I. RECOMMENDED ACTION:
By Motion: Approve the attached Amendment to the Agreement for
Mana ement Services with Wheel Fun Rentals, LLC.
II. BACKGROUND
On April 12, 2011, City Council approved an agreement with Wheel Fun Rentals,
LLC to operate Adventure Gardens Mini-Golf for a three year period. The private
vendor completed a successful first season and is optimistic about continuing a
relationship with the City. With the help of coordination of advertising with their
other operating centers located in South Minneapolis and expertise in the
amusement industry, Wheel Fun Rentals was able to sell 20% more golf rounds last
summer over the previous season.
To build on this success, Rodney Knight, President of Wheel Fun Rentals, LLC has
developed extensive plans to improve the facility to increase use. The recommended
improvements include the following:
• Repair, refresh and re-brand the existing mini-golf course.
• Repair the water feature, stonework and replace signage.
• Create a coffee shop atmosphere by serving malts, ice cream cones and mixed
coffee drinks.
1/24/12 Amended Agreement for Management Services with Wheels of Fun LLC
Add two outdoor patio eating areas, plantings and a pergola.
Install new flooring in the common area of the building and other cosmetic
improvements.
These improvements would be paid by Wheel Fun Rentals and would become
property of the City with the expectation that the City amend our agreement to
extend the term to expire seven years from now. The extended term will provide
Wheel Fun Rentals enough time for a return on investment. Mr. Knight will present
his plans with the Council Commission at the meeting.
The summary of the terms of the amended agreement follows:
Mgmt. Services Wheel Fun Rentals will operate the mini-golf facility including
concessions. City retains rental operation of the picnic shelter.
Term: April 1, 2011 to September 1, 2019 with operating seasons starting
April 1 to September 1 of each year.
Compensation: $6,000 plus 7.5% of gross revenues, not to exceed a total of $12,000
per season.
Staffing: Staffing is provided by Wheel Fun Rentals.
Upkeep & Repairs: Wheel Fun Rentals maintains and repairs the Mini-golf Facility. City
provides repair of the park building.
Utilities: Shared cost, 50/50 for actual utility cost during operating season.
Fees: Fees charged to the public will remain the same the first year and
must be competitive with that of similar private and public facilities.
It is expected that the new food offerings and facility improvements will compliment
and enhance other activities in Veterans Park including the Richfield Farmers
Market, public use of the play equipment, Honoring All Veterans Memorial, Richfield
Art Center, Richfield 4th of July Celebration and other scheduled events in the Park.
The attached agreement does not include rental operations of the large picnic
shelter adjacent to the Mini-golf facility. The Recreation Services Department will
continue to oversee all picnic shelter rental operations.
III. BASIS OF RECOMMENDATION
A. POLICY
• Contracts and agreements of this type are typically reviewed and considered
by City Council.
• The Community Services Commission has reviewed the recommended
improvements as presented by Rodney Knight on January 17, 2012 and
passed a motion to recommend City Council approve of an amended
contract to extend the term with Wheel Fun Rentals, LLC.
B. CRITICAL TIMING ISSUES
• Preparations for the upcoming mini-golf season will begin April 15, 2012
pending Council approval of the agreement.
C. FINANCIAL
• Under the amended contract, the City will receive a maximum of
compensation of $12,000 from Wheel Fun Rentals each year for the next
seven years.
• Wheel Fun Rentals will pay for the recommended capital improvements to
the mini-golf facility thereby relinquishing the need to invest capital dollars
from the City's Special Revenue Fund to pay for repairs and upkeep for the
next seven years.
D. LEGAL
• The City Attorney prepared the attached amendment and the original
agreement.
• The amended agreement was reviewed and approved by Joe Hiller,
Minnesota DNR Grants Manager, for compliance with covenants associated
with State Outdoor Recreation Grants Agreement used for funding
improvements in Veterans Park.
E. ENVIRONMENTAL CONSIDERATIONS
• None
IV. ALTERNATIVE RECOMMENDATION~S~
• Staff believes that a partnership with the Wheel Fun Rentals, LLC will
continue to increase the number of rounds sold at Adventure Gardens and
improve the City's overall financial position of the Recreation Enterprise
Fund. However, the Council may chose not to approve the Agreement and
continue to operate the facility as is or to discontinue operation.
V. ATTACHMENTS
• Agreement for Management Services for Adventure Gardens Mini-golf.
• Amendment to agreement for management services.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Rodney Knight, President, Wheel Fun Rentals, LLC and Brandon Klement,
Facilities Manager
1-I
AGREEMENT FUR MANAGEMENT SERVICES
THIS AGREEMENT is made by and between CITY OF RICHFIELD, a Minnesota ri~tuni:eii~al
corporation wTith offices at 67011 Partltuld Avenue South, Richfield, MN (``City") and WHEEL
FUN RENTALS, LLC, a Minnesota limited liability company v~~ith offices at 36Q9' Heights
Court, St. Cloud, MN {"Manager'°).
.Recitals
A. City is the owner ofa mini-:golf facility 'located at 635 Portland Avenue, within Veterans
1Vleznorial Park, in the City of Richfield, .consisting of appra.ximately 47,355 square feet of land
itnprove~ Frith a miniature golf course (th~'`hacfity''),
B. City is .also the owner of a building Tocated adjacent. to the Facility (tile "Building"),
approximately 1,664 square feet of which has been used as stdrage, .concessions, restrooms, and
office space for the operation of the .Facility and far bicycle rental (the "Operating Space''). The
Operating Space comprises one-half the to#a1 area.<of the .Building.
C. A sketch plan sho«!ing the location of the Facility, Building and Operating Space is
attached as Exhibit A. '
D. City anal Manager are entering this Agreement far Manager to manage the Facility and
operating Space according to the terms and conditions,set forth below.
Terms
1. Recitals Into orated. The recitals set forth above are incorpotateci into and made a part
ofthis Agreeixtent.
2. 'I"c7n: Tle Facility 'and Operating .Space are open for use seasonally, fiozn April 1
through September I of each year. The term. of this .Agreement is from Apri] 1, 201'1 through
September 1, 20'14, unless earlier terminated as provided in paragraph 16 beloau.
2. .Management Services. Manager agrees to manage the operation of the Facility, izicluding
mini-golf play'with club anti. ball rental, 'and to also manage the concession sales and bicycle:
rental operations during the April -September seasons for each of the years that this Agreement
is in force,and in accordance wtl~ the terms o#'this Agreement.
3. Compensation. As compensation, the Manager will retain the: gross revenues from tiie
operation of Facility, concessions and bike rental,. less the amounts paid. to the City under this
paragraph, The Manager will pay to the City $6,000 per season plus 7.5 percent of gross
revenues, fian1 the operation of the Facility, concessions and bike rental:, not to exceed a
ccinzbined total of $12,000 per season. The X6,000 will be paid in. equal monthly installments of
35287?~2 CAH RC7tif)-7
~z
X1,200, payable on tlic Iast day of May, June, July, August and September in each of the years
that this Agreement is in .force. Thee Manager will pay the portion of con~zpensation that is-based
upon Bross revenues in one in:stallmezt each year, based. on the gross revenues for -the
izaimec~ately preceding season, and payable by September 30t1z of each year...
~. Revenue Reporting 'Within 10 days after tlzeend of each month of seasonal operation,
Manager must provide. City with an accounting of the. grass revenues, separated by-categczy; for
mini-golf club and ball rental, concessions, and bicycle rental...
S. Hours of Operation and Rates. By January 1 of each year, Mazzager must subzait to the
Gity's contract manager for appro~-al its proposed schedule of hours cif' operatiozl and rental rates.
fora the Facility and bicycle .rental for the upcorzliig season.. The City's ce~ltract manager nia~-
disapprove the proposed schedule of hours and rates only if they are: coznznercially unreasonable;.
the Ctyzmust notify Ivlanager by January 15 if the schedule is not approved, or flee schedule is
deemed approved. If the schedule is .not approved, Managez- zmust submit a revised,
eozzxn~ercially reasonable schedule. to tl~e C'.ity's contract manager by February 1 preceding die
season for which the rates are applicable.
b. Stafhz~~;. At its sole. expense, .Manager must proxtide sufficiezzt personnel. to operate,
maintain and zepair the Facility, concessions and bicycle xental at all times during each operating.
season.. Manager is required to obtain criminal background eliecks on each of its employees wlto
will perlorzn.services under this Agreement. In advance of the seasozi starting date ~f eaelz year,..
Manager must .certify in writing to-. City that criminal baekg~round checks heave been performed on
Manager's siaf~' as regrxired by this Agreement..
7. Equipment. The City' will pro~~de to Manager the equipn~zent currently owned vy City
and necessary tc~ the epc;z~ztion of the Facility, concessions and bike rezztal, which zxcludes all of
the equipment Iisted on the attached Exhibit B (the "Equipment"). The City agrees to inspect'the
refrigerator and freezer and; at its expense, make any repairs that znay be necessary to make the
units operable and in compliance with applicable health and. sanitation .codes prior to April 1,
20.11. Manager agrees to accept all other Equipment in an "as is" eondition. At all times 'during
this Agreement, Manager is responsible for keeping the Equipment in a condition that is safe and
suitable for use, and in compliance with applicable health and sanitation code requirements, if
any. Manager's oblgatioirs under this. paragraph include the obligation to repair or replace
Equipment as necessary, at Manager's expense. Manager must notify City of any Equipment
that Manager removes from service and replaces; City will be responsible for disposing of
Equipment that is na longez-suitable far use, in accordance with Ci.typolicies. Manager, not City,
wil.I own any replacement Equipment that Managez• purchases at its expense. ("Replacement
Equipment").
8. Facility Repairs and Improvements. Manager is responsible to maintain the Facility and
Operating.. Space at: its expense at all tunes during each operating season. Manager is responsible
for conducting regular inspections ~f the Facility and Operating Space and notifying City of any
required repairs..:. C"ity zs responsible for making repairs to the Building iii which tho Operating
Space is located. Manager, at its expense, shall perform all repairs to the Facility but must
no#fy City prior to effecting any repair vuith an estimated cast that exceeds $500.00.
382!;72~~: CAH RG16(1-7
1.3
9. Utilities. Manager agrees to pay all utilities associated with the operation of the Fac~ity
and the Operating Space. The Facility and Operating Space aze not separately metered from
other parts afthe Building far electric, gas and water utilities. Manager and City agree that a fair
and equitable allocation of utility costs. is SU percent for the Operating Space utilities -and. 50
percent for the remainder of the Building, .based on floor area.. l'rornptly after City's .receipt. of
the utility bills far the Building #or usage during the April-Sfptembez- seasons, City will provide
Manager urith copies of the utility bills and an invoice far 50 percent of the utility costs.
Manager agrees to pay the invoice ~nrithin IU business days after receipt. if a.iiy payment is snare
than i'0 days delinquent, City nay deduct the invoiced amount from the next. install.znent af'
u~mpensationpayable under para~n•aph 3 above.
1 a. F'ocid License. At its cost, Manager znu.st obtain azzd maintain an annual food license
issued by the City. '
I1. lzzsurance. Manager must obtain and ziiaintain in farce at al'l times dw-ing this
Agreement tlz:e following insurance:
A. Workers' Cc~znpensatiozl insurance. that meets niiizmztm statutory obligations:
B. Commercial General Liability nsuranceagainst. claimsfar,personal injury, death
or propc•ty damage occurring in connection with Manager's perforinazice of this
Agreem:cnt, with. limits of not less than $1,UUO,UUU each occurrence, $.300,ODU
propezty damage; $S;UUU medical expense any aze person; $SOO;OUO personal and
...advertising injury. The policy shall he on an ``occurrence" .basis, shall include
contractual liability coverage, and the City shall be named an additional insured.
C. Commercial Automobile Liability: insurance covering all owned,. non-owned and
hired automabites with Limits of at least $1,000,000 combined single limit.
D. Professional lability `insurance providing coverage for tl~e claims that arise from
the en•ars of Manager or its ..employees, failure to render a professional service by
Manager ar its employees, >or the negligent :rendering of the professional sezwice
Manager in the amount. of $SUU,000 each occurrence and $SOU,UUO annual
aggregate. The insurance policy must provide the protection stated for two years
after termination of this Agreement.
Such insurance secured by Manager .shall be issued by insurance companies admitted in
Minnes<~ta. The insurance. specified may be in a policy or policies of insurance, primary or
excess. Such zsuranee shall be in force on the date of execution of the Agreement and shall
remain. continuously in force for the duration of the Agreement, unless otherwise stated.. Any
policy deductibles or retention shall be the responsibility of Manager. The City does not
represent that the insurance requirements are. sufficient to protect Manager's interest or provide
adequate coverage.
3x?8',~2~-2 r. nip R<:~ i eci-7
1-'~
12. Indemnification. Mazzager agrees to defend, izxdemnify and hold lzazrnless, the City, its
officials,.. afficers, agents and employees from any liability, claims, causes of action, judgments,
damages, lasses, casts, or expenses, including reasonable attorney's fees; resulting directly ~r
indirectly from .any act ar amisson of the .Manager, its contractors or subcontractors or anyone
directly or indirectly en~z~loyed by them, ar anyone. volunteering. for them, or any pazrty that
directly ar indirectly benefits from.. the activities specifzed' in this ..Agreement,.. ar anyone fir
«hase acts or omissans they may be liable in tl~e performance of the activities specified in this
Agreementand against all lass by reason of the failure of the Manager to perform fully, in any
respect, all obligations undez• this Agreement.
Nothing in this ..Agreement :shall be deemed to be a waiver by the City or its elected officials of
any limitations on ar mnzun.ities from liability set forth in Minnesota Statutes, Chapter 4bb or to
which the City oz• its elected officials, officers, employees, agents and representatives are
otherwise entitled.
13. Data Privacy~Records. The Manager agrees to comply with the Mizznesota. Governzz~ent
Data Practices ,Act (the "Act") and all other applicable state and federal Iaws relating to data
privacy or confidentiality. Manager will immediately repoi~ to the City any requests from third
parties for nfoz-mataon relating to this Agreement, or services pravcled hereunder. Tlie City'
agrees to promptly. respaz3d to inquiries f'raxri Manager concerning. data. requests. All data.
created,. collected, received .stored,.. used, maintained or disseminated by .Manager. in performing
its obligations is subject to the requirements of the Act, and Manager must comply with the
requirements of tl~e Act as .if Manager was a government entity. IVlanager agrees. to eiefend,
indemnity aiz:d hold the City, its officers azzd employees harmless fiozxz any-claims. resulting froze
Manager's failure to disclose data maintained by Manager and authorized -for release by the City,
or from Manager's unlawful. disclosure or use of data protected under state and federal laws..
l4. Audits. Ivt:anager agrees that. the :City or'the state. auditor,. including any duly autl~ariced
representatives of the City ar state auditor, shall have access to and the right to examine, audit,
excerpt and transcribe an3r backs, dacuznents, papers, and records that involve relevant
transactions relating to this Agz-eeixzent at-any tune during normal business hours and as often as
they may reasonably deezn_neeessazy.
15. lrzdependent .Contractor. Manager, along with any other person hired or retained by
Manager, shall perform the services under this Agreement as an independent. contractor and .eat
as employees ofthe City. The Manager and its employees will act as azx independent contractor
and shall. not be treated as an employee ~t City for federal, state or local tax purposes or any
ether purposes undez-;any circumstances.. Manager and its employees shall nit require nor be
entitled to any compensation, rights or benefits of any kind whatsoever from City, including,
without -limitation, tenure rights, medical and hospital care, sick azid vacation leave, workers'
compensation benefits, unemployineiit compensation, disability, severance pay, pension benefits
or any other'. rights or benefits of City employees. .Regardless of any detezrzlination of any
pertinent tribunal, agency, boazd, commission oz• court, Manager agrees to bald harmless,. defend
and mdeznnifyCity, its officers, agents and employees from any loss, claim ar liability related to
Manager or persons employed oi• retained by Manager, including, without limitation, claims of
821+72v2 CAti RC(6Ct-7
1-5
employment dscrininatiorr ar emlaloyez`-reiateci tax, social security, or employment ar disability
payzb cots.
16. Termination.. This Agreement may be terminated as provided in -thin paragraph, and
payment of compensation shall be prorated to the last day this. Agreement remains in force.
A, Termination Without Cause. Either party may cancel this .Agreement without
cause by gitring written notice to the other party no later October 15 of -any year
during the term of this Agreement; such terminatian shall be effective. as of
Navember 30 of the year in which notice is given..
B. Tczmnatc~n fir Cause. Either party uiay terminate. this Agreement for cause as
pravided herein. h'or purposes of this Agrceznent, "cause" shall be defined as any
of-the fallowing:..
I, :'Material failure to comply with the provisions of this Agreementazzd failure, to
cure such-breach with seven (7) .clays after. the non-tez7nitzating' party's written,
notice of the item of'breach. In such instance,. The Agreement is terminated
effective 14 days after the non-terminating pasty's notice of the breach.
2. TJssolution, substanfial contraction, or bankruptcy of the nc~n-terminating
party, in which case the termination shall be effective I Q days af~ei` party's'.
written natice of termination or such. later date as specified in the written
ztotce.
C. Notwithstanding the above; neither party shall be relieved of liability to the;other
for damages sustained as a result of any breach of this Agreement by the other
I~azty. The City may witllhald payments due to Manager for the purpose ofset-off'
until such time as the exact amount of damages.. dzze to the. City is determined.
The rights or remedies provided fir herein shall oat limit either party, zi case of
any default by the other party, -from :asserting any ather right or remedy allowed
bylaw, equity, ar by statute.
17. Legal Coz~liazice. Both' parties agree to comply with all applicable state, federal. and
local Laws, rt,tl~s and regulations in carrying out their respective obligations under this
Agreemment. Without limiting-the faregoing, the parties agree that the provisions of Minn. Stat.~~'
1$1.59 (prohibiting discrimination on account of race, creed or color) are incorporated into this
Agneerrent by rcference,• that the parties shall comply with the Minnesota Human Rights Act,
Minn. Stat. chapter 363A; that the parties shall coznplywith the Americans With Disabilities Act
of 1990 and oat to discriminate on the basis of disability in the admission. or access to, or
trea.ttment of individuals in its sei•~rices, programs or activities. Upon request, accommodation
wi I be provided to allow individuals with disabilities to participate in all senJices, programs and
activities.
18. NOTICES. Any natiees to be given hereunder b}~ either party to the other may be
effected'by personal delivery in writing- or by mail, registered or certified, postage prepaid with
return receipt ret~uested. Natices delivered personally will be deemed communicated as of the
is3R72v2 CrIH I2C16O-7
V/
date ~f actual receipt. Mailed notices will be deemed communicated,;as of two (2) days after the
date ~~f znaili.ng: Mailed notices shall be addressed to the parties a# the addresses appeaz7ng at the
end oI'this Agreement, but each Harty may change tlic address by written. notice in accordance
with this paragraph.
19. Assignment. Neither this agreement nor any duties or obligations under this Atreemez~t
may be assignc;d by Contractor or Client without the prior written etrnsent of the other party.
2U. Healthy Menu Choices. Manager shall offer at Ieast,one healthy food menu itcin and at
least ane healthy beverage as pa1-t of concession .operations;
21. Publicity. The facility will be identified as publicly owned and operated in all signs,
literature, and' advertising to eiizninaTe tl3e perception that the facility is privately owned:..
2~. Fee Rates. Fee rates charged to the public by'Manager must be competitive with that
of similar p1`i.uate and_public facilities.
This ~greenzent is entered into as of the date and year written above
OF
WHEEL FUN RENTALS, LLC
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By ~~~~~ ,i``t ~ ~ Its Manager -_._.
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3R2R72v2 CAIi RC;IL• ~-i
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EXH.IBIT B
I:ist of Equl~nen.t
One -- Cehl's Nach<~ Cheese Dispenser (Hot T~,p 2}'
One - Aziiana 1Vlicrowave Oven
One -Counter Top :Refrigerator (Coke Property)
One -Fountain Pop Dispenser (Cake Property)
One -Single Bunn Coffee Brewez• (AI's Coffee Praperty)
One -Cappuccino and Hot Chocolate Dispenser (Al's Coffee Properly)
Four -Air Pat Coffee Dispensers (Al's Coffee -.Property }
One -Vulcan Two'Door Refrigerator
One - ~Julcan Twc~,Door Freezer
One - Malti-Clean .Double U Seven: Dispenser
One - AMSEC Money Safe
One - 79G2 Cisco 1P Plione
One - .PIX 1 {) Time Clock.
One -Five Gazncra Vuvico Security Systeiil
Une -City Computer with monitor, keyboard, mouse, printer and Belkin l'o~ver strip
One -Bolt Cutter
9 - 37" Putter
SK --35" :Putter
54 - 32" Putter..
49 -- 29" Putter
10 -Kids Puttez•
109 -Multi Colored-Putt-Putt Balls
Une>- 8' x 8' Outdoor Shed with Locks that Contains:
One --Yardman self: propelled walk behind lawn mower
One -Wheel $azrow
Tvo - Bz~tsh Snips
Une - .Regular safety fuel can (Empty}
One -- Mixed safety fuel can.(Empty)
One -Echo-hand held leaf blower
Oiie - Ecl1o weed whip
Two - 32" plastic- leaf rake
One -Pitch-fork.
O.ne-Post-hole digger
Une -Barn shovel
Two -Garden rake
T~vo - 18" Pusli broom
One.- Garden shovel
Two - Gorer Trash. Picker
3fi2.fi72v2 C'AH RC'Ib0.7
~,~
AMENDMENT TO
AGREEMENT FOR MANAGEMENT SERVICES
THIS AMENDMENT is made as of January _, 2012 to the Agreement for Management
Services (the "Agreement") by and between CITY OF RICHFIELD, a Minnesota municipal
corporation with offices at 6700 Portland Avenue South, Richfield, MN ("City"} and WHEEL
FL1N RENTALS, LLC, a Minnesota limited liability company with offices at 3609 Heights
Court, St. Cloud, MN ("Manager").
Recitals
A. The Agreement was approved by City on April 12, 2012.
B. Manager proposes to make improvements to the Facility that were not contemplated by
the Agreement. In consideration of the proposed improvements, Manager has requested an
extension in the term of the Agreement.
Terms
1. Recitals Incorporated. The recitals set forth above are incorporated into and made a part
of this Amendment.
2. Amended Term. Paragraph 2 of the Agreement is amended to read as follows:
2. Term. The Facility and Operating Space are open for use seasonally, from April 1
through September 1 of each year. The term of this Agreement is from April 1, 2011
through September 1, 2019, unless earlier terminated as provided in paragraph 16 below.
3. Improvements. Paragraph 8 of the Agreement is amended to read as follows:
8. Facility Repairs and Improvements. Manager is responsible to maintain the
Facility and Operating Space at its expense at all times during each operating season.
Manager is responsible for conducting regular inspections of the Facility and Operating
Space and notifying City of any required repairs.. City is responsible for making repairs
to the Building in which the Operating Space is located. Manager, at its expense, shall
perform all repairs to the Facility, but must notify City prior to effecting any repair with
an estimated cost that exceeds $500.00. Prior to making any improvements to the
Facility or Building at a cost that exceeds $500.00, Manager must deliver plans,
specifications, aproposed construction schedule and proof of financing to City for City's
approval. All improvements must be contracted in accordance with the Minnesota
Uniform Contracting Law, and the City and Manager shall determine which party will
contract for the improvements and the responsibility for the cost of the improvements, all
of which shall be set forth in a separate letter agreement at the time the improvement is
approved. The City's city manager is authorized to approve improvements estimated to
cost $10,000 or less; the City's city council must approve all other improvements. All
397263v1 CAHRC160-7
1-~ ~
work must be performed in accordance with applicable laws and ordinances. All
improvements to the Facility or Building shall be the property of the City. For all
improvements contracted by Manager, Manager must obtain mechanic's lien waivers and
provide City with copies of the same.
4. Effect of Amendment. Except as expressly modified by this Amendment, the terms and
conditions of the Agreement remain in full force and effect.
-- - -
CITY OF RICHFIELD WHEEL FUN RENTALS, LLC
By
Its Mayor
By.
Its
By
Its Manager
397263v1 CAHRC160-7
AGENDA SECTION: OTHER BUS.
AGENDA ITEM # 8
REPORT # 25
STAFF REPORT
CITY COUNCIL MEETING
JANUARY 24, 2012
REPORT PREPARED BY: CHERYL KRUMHOLZ, EXEC. COORDINATOR
L
REVIEWED BY CITY ~-
MANAGER: ~/ ISM _
ITEM FOR COUNCIL CONSIDERATION:
Consideration of designating representatives to serve as 2012 liaisons to various metropolitan
a encies and Cit commissions.
I. RECOMMENDED CTION:
By Motion: Designate Council liaison appointments for 2012 to
various metropolitan a encies and Ci commissions.
~ II. BACKGROUND
Members of the City Council serve as the City's representatives on various metropolitan
agencies and City commissions. Each year, the Council appoints these representatives.
Staff will notify the agencies and commissions of the appointments.
III. BASIS OF RECOMMENDATION
A. POLICY
• Each year, the City Council appoints representatives to serve as liaisons on
various metropolitan agencies and City commissions.
B. CRITICAL TIMING ISSUES
• The City needs representation on metropolitan agencies and commissions.
IV. ALTERNATIVE RECOMMENDATION(S~
• Defer the designation to a future Council meeting.
~ V . ATTACHMENTS I
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
01241iaisons
• AGENCY 2011 LIAISON
METRO CITIES DEBBIE G ETTEL, REP.
PAT ELLIOTT; FRED
WROGE; TOM FITZHENRY;
SUE SANDAHL, ALTS.
LEAGUE OF MINNESOTA CITIES DEBBIE GOETTEL, REP.
SUE SANDAHL, ALT.
NOISE OVERSIGHT COMMITTEE TOM FITZHENRY, REP.
PAM DMYTRENKO, ALT.
TRANSPORTATION COMMISSION SUE SANDAHL, LIA.
TOM FITZHENRY, ALT.
I-35W SOLUTIONS ALLIANCE SUE SANDAHL, LIA.
PAT ELLIOTT, ALT.
MIKE EASLTING, STAFF LIA.
494 CORRIDOR COMMISSION SUE SANDHAL, LIA.
PAT ELLIOTT, ALT.
JEFF PEARSON, STAFF LIA.
MCWD/NMCWD DEBBIE GOETTEL
PAT ELLIOTT
PLANNING COMMISSION PAT ELLIOTT, LIA.
DEBBIE GOETTEL, ALT.
COMM. SERVICES COMMISSION FRED WROGE, LIA.
PAT ELLIOTT, ALT.
ADVISORY BOARD OF HEALTH DEBBIE GOETTEL, LIA.
TOM FITZHENRY, ALT.
HUMAN RIGHTS COMMISSION PAT ELLIOTT, LIA.
DEBBIE GOETTEL, ALT.
FRIENDSHIP CITY COMMISSION PAT ELLIOTT, LIA.
SUE SANDAHL, ALT.
ARTS COMMISSION DEBBIE GOETTEL, LIA.
SUE SANDAHL, ALT.
PROPERTY EXCELLENCE TASK TOM FITZHENRY, LIA.
FORCE FRED, WROGE, ALT.
RICHFIELD COMMUNITY HUMAN DEBBIE GOETTEL, REP.
SERVICES PLANNING COUNCIL
FOWL BOARD DEBBIE GOETTEL, REP.
FRED WROGE, ALT.
SOUTHWEST CABLE COMMISSION FRED WROGE, REP.
STEVE DEVICH, REP.
SUE SANDAHL, ALT.
RICHFIELD HISTORICAL SOCIETY DEBBIE GOETTEL
RICHFIELD SCHOOL DISTRICT PAT ELLIOTT, REP.
FRED WROGE, ALT.
2012 LIAISON " /
01/17/12
AGENDA SECTION: OTHER BUS.
AGENDA ITEM # 9
REPORT # 26
,~' STAFF REPORT
CITY COUNCIL MEETING
JANUARY 24, 2012
REPORT PREPARED BY:
REVIEWED BY CITY
MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of appointments to City advisory commissions.
I. RECOMMENDED ACTION:
By motion: Appoint persons to fill the expiring or vacant terms on the
Cit advisory commissions.
II. BACKGROUND
Several terms of City commission members expire on January 31, 2012. In addition,
there are mid-term vacancies due to resignations that need to be filled. Vacancies were
advertised in the Richfield Sun-Current, on cable television channel 16 and the City's
Website.
III. BASIS OF RECOMMENDATION
A. POLICY
• The City advisory commissions were established by City ordinance or
resolution. Terms are for three-years and are staggered. Several terms
expire on January 31 annually. The Council directs the City Manager's
office to conduct a recruitment seeking applicants to fill the vacancies.
Interviews of the applicants are conducted at Special City Council
meetings. These Council meetings were posted in accordance with the
open meeting law requirements.
B. CRITICAL TIMING ISSUES
• Applicants were interviewed at Special City Council meeting on January 22,
2012.
Terms of several commission members expire on January 31, 2012.
KRUMHOLZ, EXEC. COORDINATOR.
0124commission
A. LEGAL
• The Special City Council Meeting was posted in accordance with the open
meeting law requirements.
B. ENVIRONMENTAL CONSIDERATIONS
• None
IV. ALTERNATIVE RECOMMENDATION~S~
• Defer appointments to a later Council meeting.
V. ATTACHMENTS
• Commission vacancy list
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
91
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AGENDA SECTION: OTHER BUS.
AGENDA ITEM # 10
REPORT # 27
STAFF REPORT
CITY COUNCIL MEETING
JANUARY 24, 2012
REPORT PREPARED BY: CHE~L KRUMHOLZ, EXEC. COORDINATOR
REVIEWED BY CITY ~
MANAGER: IJ ~ /.[~d
ITEM FOR COUNCIL CONSIDERATION:
Discussion regarding Council attendance at 2012 National League of Cities Conferences.
I. RECOMMENDED ACTION:
By Motion: Designate Council Member(s) to attend the March 10-14,
2012 National League of Cities (NLC) Congressional Conference and
the November 27-December 1, 2012 NLC Congress of Cities
Conference.
II. BACKGROUND
According to State Statute 471.66, the governing body of cities and school districts
must adopt a policy that controls out-of--state travel for elected officials. That policy
was adopted by the City Council in November 2005 and stipulates that the City
Council must approve, in advance by a motion, attendance at out-of--state
conferences.
Information regarding the 2012 National League of Cities conferences is available
on their website: www.nlc.org.
III. BASIS OF RECOMMENDATION
0124conferences
A. POLICY
• The Council has determined that attendance at the NLC conferences
is beneficial to the City's operations and long-range planning efforts.
B. CRITICAL TIMING ISSUES
• While the City continues to face revenue reductions from the State, it
is even more critical that the Council remains in the informational loop
regarding congressional activities as it relates to airportJaviation
activities, federal funds and homeland security issues.
C. FINANCIAL
• Funds for one Council Member to attend the NLC Conference(s) are
budgeted in the City's 2012 budget.
• The estimated total cost of each conference, including registration,
flight, lodging and per diem, is $2500 per Council Member.
• The City Council may wish to take into consideration the financial
constraints facing the City for 2012.
D. LEGAL
• According to State Statute 471.66, the governing body of cities and
school districts must adopt a policy that controls out-of-state travel for
elected officials.
E. ENVIRONMENTAL CONSIDERATIONS
• N/A
IV. ALTERNATIVE RECOMMENDATION~S~
• Address this issue prior to each conference.
• Decline to send Council delegates to any or only designated conferences.
V. ATTACHMENT ~S~
• List of conferences.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
io-
COUNCIL MEMBER ATTENDANCE AT NATIONAL CONFERENCES
2009 - 2012
CONFERENCE DATE LOCATION ATTENDEES COST
2009
NLC March 14-18 Washington, DC None None
Congressional
Cit
NOISE TBD (typically TBD None None
Jul )
NLC Congress November 10-14 San Antonio, TX Sandahl $2380
of Cities
2010
NLC March 13-17 Washington, DC Goettel None
Congressional
Cit
NOISE TBD (typically TBD None None
Jul
NLC Congress Nov. 30-Dec. 4 Denver, CO None None
of Cities
2011
NLC March 12-16 Washington, DC Goettel $2590
Congressional
Cit
NLC Congress Nov.8-12 Phoenix. AZ Goettel
of Cities
2012
NLC March 10-14 Washington, DC
Congressional
Cit
NLC Congress Nov.27 - Dec.1 Boston, MA
of Cities
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AGENDA SECTION: OTHER BUS.
AGENDA ITEM # 1 I
REPORT # 28
STAFF REPORT
CITY COUNCIL MEETING
JANUARY 24, 2012
REPORT PREPARED BY: CHERYL KRUMHOLZ, EXEC. COORDINATOR
N ,Tires
REVIEWED BY CITY
MANAGER: Ili -' ~~
ITEM FOR COUNCIL CONSIDERATION:
Consideration of the designation of Mayor Pro Tempore for 2012.
I. RECOMMENDED ACTION:
B Motion: Ci Council desi nation of Ma or Pro Tem ore for 2012.
~ II. BACKGROUND
It is necessary to designate a City Council Member to serve as the Mayor Pro
Tempore for those times when the Mayor is absent from the City.
City Council Member Pat Elliott served as Mayor Pro Tempore for 2011.
III. BASIS OF RECOMMENDATION
A. POLICY
• Each year the City Council designates a Council Member to serve as
the Mayor Pro Tempore.
B. CRITICAL TIMING ISSUES
• It is necessary to designate a Mayor Pro Tempore to ensure
continuation of City operations during an absence of the Mayor.
C. LEGAL
• Section 2.06. The Mayor. Subdivision 1, of the City Charter states:
"The Mayor shall be the presiding officer of the Council, except that
the Council shall choose from its members a president pro temp who
shall hold office at the pleasure of the Council and shall serve as
president in the Mayor's absence and as Mayor in case of the Mayor's
disability or absence from the City."
0124MayorProTempore
D. ENVIRONMENTAL CONSIDERATIONS
• None
I 1 V . ALTERNATIVE KECOMMENDATION(S)
re Council meeting.
V. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.