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05-08-07 Agenda CITY OF RICHFIELD, MINNESOTA TUESDAY, MAY 8, 2007 ********************************************************************************************************** SPECIAL CITY COUNCIL WORKSESSION COUNCIL CHAMBERS 6700 PORTLAND AVENUE 5:30 P.M. AGENDA Call to order Roll call 5:30 - 6:30 p.m. 1. Discussion regarding preliminary key financial strategies (Council Memo No. 79) Notes: 6:30 -6:40 p.m. 2. Discussion regarding proposed Centennial Celebration budget (Council Memo No. 80) Notes: 6:40 - 6:50 p.m. 3. Discussion regarding draft community survey performance specification (Council Memo No. 81) Notes: Adjournment ********************************************************************************************************** REGULAR CITY COUNCIL MEETING COUNCIL CHAMBERS 6700 PORTLAND AVENUE 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 Concurrent City Council/Richfield School Board Meeting of April 24, 2007 and (2) Regular City Council Meeting of April 24, 2007 PRESENTATIONS 1. Presentation of proclamation designating May 13-19, 2007 as National Police Week in Richfield 2. Presentation of proclamation designating May 27 - June 2, 2007 as Salute to Small Business Week COUNCIL DISCUSSION 3. Council discussion .' City Council participation in Fourth of July parade . Hats Off To Hometown Hits Notes: AGENDA APPROVAL 4. Council approval of agenda CONSENT CALENDAR 5. 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. However, any Council Member may request that an item be removed from the Consent Calendar and placed on the regular ag ~ nda for Council discussion and action. All items listed on the Consent Calendar are recommended for approval. A. Consideration of approval of first reading of amendment to Richfield City Code deleting Section 400.37 and adding new Section 903 relating to imposition of fees for certain emergency servic~~nd collection thereof and schedule second reading for May 22, 2007 S.R. No. t I ~ . B. Consideration of approval of resolution continuing transfer of Board of Equalization authority to Hennepin County effective 2008 and future years S.R. No. 116 C. Consideration of approval of resolution affirming and r<;itifying City's submittal of application to Hennepin County for environmental response grant for development of response action plan and construction contingency plan for environmental clean-up work on 6545 Portland Avenue property; BP gas station S.R. No. 117 D. Consideration of approval of resolution adopting City Council rules of procedure and decorum S.R. No. 118 E. Consideration of approval of resolution approving bid minutes/tabulation and awarding contract to TMI Coatings, Inc. for Penn Avenue tower reconditioning project in amount of $333,100 S.R. No. 119 F. Consideration of approval of resolution accepting funding from Hennepin County Department of Human Services and Public Health for police cadet program and Human Services and Public Health Department provider agreement S.R. No. 120 G. Consideration of approval of pond expansion agreement expanding Adam's Hill Pond to fulfill stormwater requirements associated with redevelopment project in Edina S.R. No. 121 Notes: 6. Consideration of items, if any, removed from Consent Calendar Notes: PUBLIC HEARING 7. Public hearing and second reading of amendment to Richfield Zoning Code Section 546 to allow variances processed in conjunction with another application to be heard and decided upon by City Council (continued from April 24, 2007) and resolution authorizing summary publication of ordinance relating to variances Staff Report No. 122 Notes: RESOLUTIONS 8. Consideration of resolution authorizing issuance of revenue bonds to finance multifamily housing development; @ Home Apartments, 7437 Lyndale Avenue . Staff Report No. 123 Notes: 9. Consideration of resolution amending off-street parking permit at 7431-7521 Lyndale Avenue, Gateway Apartments, allowing construction of garages Staff Report No. 124 Notes: 10. Consideration of resolution authorizing license agreement between City of Richfield, Kensington Park Retail (Cornerstone Group) and CSM Investors for shared parking at municipal liquor store at 7700 Lyndale Avenue Staff Report No. 125 Notes: . OTHER BUSINESS 11. Consideration of selecting design option for proposed Maintenance Facility and authorizing acceptance of bids pertaining to option selected Staff Report No. 126 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 k ep their comment p riod to three minutes to allow sufficient time for oth rs. 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. AGENDA SECTION: AGENDA ITEM # REpORT # Consent 5A 115 ........ STAFF REpORT RICPlFIELD CITY COUNCIL MEETING MAy 8, 2007 REpORT PREPARED By: BRAD SVEUM, FIRE SERVICES DIRECTOR NAME, TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: ~ REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of a first reading of an amendment to Richfield City Code repealing an existing section and addinq a new section authorizing imposinq fees for certain emerqency services. I. RECOMMENDED ACTION: By Motion: Conduct a first reading of the attached ordinance amendment to Richfield City Code deleting Section 400.37 and adding new Section 903 relating to the imposition of fees for certain emergency services and the collection thereof pursuant to Minnesota Statutes Sections 415.10, 366.011 and 366.012 and schedule second reading for Mav 22,2007. , I II. BACKGROUND I . Section 400.37 of the Richfield City Code authorizes the City to impose charges for certain emergency services that relate to fire and rescue activities. . The City's current fee schedule for certain emergency fire responses is set forth by resolution in SeCtion 6, Fire Service Fees of Richfield City Code Appendix. D. . These emergency fire responses include vehicle fires, automobile accident extrications, containment and control of hazardous materials spills and hazardous conditions involving downed power lines and leaking gas lines. . State Statute 366.011 authorizes imposition of reasonable fees. 0508Fire I III. BASIS OF RECOMMENDATION I I A. POLICY I . The recommended ordinance addition will bring the City more closely into compliance with Minnesota State Statute 415.01 which requires a city to adopt by ordinance a policy to charge for certain emergency services provided by Minnesota State Statute 366.011. . The fees for such services are established by resolution in Richfield City Code Appendix D. . Only vehicle insurance companies will be billed. Residents or vehicle drivers are not billed for services. I B. CRITICAL ISSUES I . The City Attorney has determined that Minnesota State Statute 415.01 requires that the policy of imposition of emergency service fees and fee schedule be adopted by ordinance. . The wording of the current ordinance (400.37) references billing only non- residents. It is the opinion of the City Attorney this could be considered discriminatory. . The proposed ordinance language is not as narrow in scope as to who is billed for these services. I C. FINANCIAL I . Imposition of fees offset a portion of the costs of service provision. I D. LEGAL I . The recommended ordinance is required for the City to exercise its ability to impose fees for emergency services as provided for by Minnesota State Statute 366.011. I IV. ALTERNATIVE RECOMMENDATION(S) I . Reject the motion. The City would not be able to exercise its ability as provided for in Minnesota State Statute 366.011. I V. ATTACHMENTS I . Draft of proposed amendment to Richfield City Code. I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . N/A 5'A-1 BILL NO. AN ORDINANCE RELATING TO CHARGES FOR EMERGENCY SERVICES AND COLLECTION THEREOF; REPEALING SUBSECTION 400.37 OF THE RICHFIELD CITY CODE; ADDING A NEW SECTION 903 TO CHAPTER IX TO THE RICHFIELD CITY CODE THE CITY OF RICHFIELD DOES ORDAIN: Section 1. Subsection 400.37 of the Richfield City Code is amended by repealing the entire subsection. Sec. 2. A new Section 903 is added to Chapter IX of the Richfield City Code: Section 903 - CharQes for EmerQency Services and Collection. 903.01. Authority. This section is adopted pursuant to Minnesota Statutes Sections 415.01, 366.011 and 366.012. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk AGENDA SECTION: AGENDA ITEM # REpORT # Consent 5B 116 ...... STAFF REpORT RICHFIELD CITY COUNCIL MEETING MAy 8, 2007 REpORT PREPARED By: STEVEN L.DEVICH, CITY MANAGER NAME, TiTLE COUNCIL PRESENTER: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of the resolution continuing the transfer of the Board of Equalization authority to Hennepin County effective 2008 and future years. I. RECOMMENDED ACTION: By Motion: Adopt a resolution continuing the transfer of the Board of Equalization authority to Hennepin County beginning in 2008 and future years. I II. BACKGROUND I Minnesota Statutes currently provide the authority for cities whose assessment is done by the County to transfer the duties of the local board of equalization to the County Assessor. Richfield has contracted with Hennepin County since the early 1980's for the annual assessment of local properties. However, until the repeal of a Richfield City Charter provision in early 2004, the City was required to conduct its own Board of Equalization each spring. With the repeal of the Charter requirement, the City is now able to follow State Statutes and transfer the local board duties to Hennepin County for 2005. On May 25, 2004, the City Council approved a resolution authorizing the transfer of the Board of Equalization duties to Hennepin County for a three-year period commencing in 2005. The County has now notified the City that the three-year open book meeting period ends in 2007. The last open book meeting was held on April 26, 2007. 05080penBook If the City wishes to continue to take advantage of this statutory provision, proper notice must be given prior to City Council consideration of the matter and notification must be senUo the County Assessor before December 1 of the year to be effective for the following year's assessment. Thus, the notice to the County Assessor must be sent by December 1, 2007 to be effective for the 2008 equalization/review process. The past three-year open book process worked well for the City and residents. Discussions were more inviting, accommodating and effective. Assessing staff indicate the number of people who attended the open book meetings has increased slightly compared to the more formal Board of Equalization. Most residents at the open book have general questions about their property value. With the success of the past three-year open book process, it is now recommended that the transfer of the local Board of Equalization authority to the County be continued effective beginning 2008 and future years. The City Council can retain it's duties by giving notice to the Hennepin County assessing department by December 1 of any given year and they could once again retain the duty of the Local Board of review for the following year. However, if the Board of Equalization is re-instated, there must be at least one board member who has attended the Department of Revenue Local Board of Review training. . I III. BASIS OF RECOMMENDATION I I A. POLICY I . A number of cites that contract with Hennepin County for their annual assessment, have transferred the Board of Equalization duties to the County. . The County utilizes "open book" meetings to informally meet with residents who believe their property values have been set too high. This process may be far less intimidating for a resident than speaking before a formal Board of Equalization. . Residents who are not satisfied with the results of the "open book" meeting may proceed to the County Board of Equalization/Review. . Statutory changes enacted in 2003 made it more cumbersome for cities to conduct local boards beginning in 2006. I B. CRITICAL ISSUES I . This action must be completed and notification filed with the County Assessor on or before December 1,2007. I C. FINANCIAL I . There is no cost associated with transferring the duties to the County. In fact, there is a small savings to the City each year. I D. LEGAL I . The City Charter provision requiring the City to conduct its own Board of Equalization has been repealed. The City may re-instate conducting its own Board of Equalization under State Statutes. However, one person who serves on the Board will be required to have specific local board training by the Department of Revenue. . MN Statutes provide that a city that contracts with a county for its annual property assessm~nt may transfer the local board of equalization duties to that respective county. . Transfers of local board of equalization authority from a city to the county must be for a period of at least three years. However, a city may decide to make the transfer for a longer period or permanent. . If the City decides not to renew the assessing contract with Hennepin County in the future, the City would have to once again assume the statutory duties of a Board of Equalization at that time. I IV. ALTERNATIVE RECOMMENDATION(S) I . The City Council may decide to re-instate the local Board of Equalization duties. . The City Council may decide to transfer the local Board of Equalization duties for a period of three years or longer. I v. - ATTACHMENTS . Resolution. . Memo with attachments from Hennepin County Assessor Department I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . None 50-1 RESOLUTION NO. RESOLUTION AUTHORIZING THE TRANSFER OF BOARD OF EQUALIZATION DUTIES TO HENNEPIN COUNTY COMMENCING IN 2008 AND FUTURE YEARS WHEREAS, MN Statutes allow cities to transfer the local Board of Equalization duties to the County if said city contracts with the county for assessment services; and WHEREAS, the City of Richfield currently contracts with Hennepin County for annual assessment services; and - WHEREAS, the City Council repealed the City Charter provision requiring the City to conduct an annual Board of Equalization, which became effective in 2004; and WHEREAS, the City of Richfield desires to continue the transfer the duties of the local Board of Equalization to Hennepin County beginning in 2008 and future years; and WHEREAS, the City of Richfield can retain its duties by giving notice to the Hennepin County assessing department by December 1 of any given year and could once again retain the duty of the Local Board of Review for the following year; and WHEREAS, the City has considered this matter pursuant to the requirements of M.S. 274.01, subd. 3. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield as follows: 1. The City of Richfield hereby transfers the duties of the local Board of Equalization to Hennepin County commencing with the 2008 and future years. 2. The City Council further directs the City Manager to notify the County Assessor in writing of this action before December 1,2007. Passed by the City Council of the City of Richfield this 8th day of May, 2007. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk 5e;-~ Hennepin County AssessorDepartment A~21 03 Government Center Minneapolis, Minnesota 55487-0231 www.co.hennepin.mn.us November 10,2003 Dear Clerk/Administrator, This letter is to inform you of legislative changes made by the 2003 Legislature that effect the Local Boards of Appeal and Equalization., These changes provide that by no later than January 1, 2006, and each year ,thereafter, there must be at least one'memberat each local board meeting who has attended an appeals and equalization course developed or ' approved by the Commissioner of Revenue. The required course work must have been completed by the designated local board merriber( s) within the last four years af eC!ch annual local board meeting(s). . A handbook will be developed by the Commissioner of Revenue, no later thcfnJanuary 1, 2005 and is to detaillacal board procedures, responsibilities, and requirements.. A review of the handbook must be included in the local'board course. Details of the course and handbook will be promulgated by the Department of Revenue at a later date. In addition, the new legislation also requires that the local boards provide proof of " compliance with the course attendance; as well as, provide verification that a quorum was present at each of the local board meetings in the prior year. This legislatiqn provides that any city or town - that does not provide proof of compliance to the county assessor by December 1, 2006, alldeach yearthereafter,is deemed to have transferred its board of appeal powers to the county for the following assessment This transferenc~ of duties to the courityisan '~altemate review process" (M.S. 274.13 subd.1 c.) and shall take place in April or May with "open book" meetings. The-open book meetings are where the county assess"orshall make available a procedure for reviewingthea~sessments with the taxpayers. A copy of this 2003 legislation has been attached. . . In light of these legislative changes, I wanted to remind youthat M.S. 274.01 subd.3 currently provides for the transference of duties from the local boards to the county assessor. This statute is only available to those' cities whose assessment services are performed bv the countv assessor. 'The town board of any tow,'7 or the governing body of any home role charter or statutory city may transfer its powers and duties under subdivision 1 to the county board, and no longer . M:\A21\Administrative\PoJicies and Procedures\Local Board of Appeal and Equalization 56-- 3 Page 2 November 10, 2003 perform thefunction of a local board. Before the town board or the governing body of a city transfers the powers. and duties to the countyboard} the town board or city's governing body . shall give public notice ofthe meeting at which the proposal for transfer is lobe considered. The public notice shall follow the procedure contained in section 13f?O{ subdivision 2. / A transfer of duties as permitted under this subdivision must be communicf3ted to the county assessor, in writing,.before December 1 of any year to be effective for the following years - assessment. This transfer of duties to the county may either be permanent or for a specified number of years} provided that the transfer cannot be for less than three years. Its length must be stated in writing. A town or city may renew its option to transfer. Thepption to transfer duties under this subdivision is only available to a townor city whose assessment is done by the county". The Commissioner of ReVenue will be providing detailed instructions in the near future. However,; wantedto take this opportunity to inform you of this new legislation and let you know the o.pt!QQsJhatare, available to your City-Gouncil/Board of Appeal and Equalization. As always, if you have any questions or concerns please contact me or my staff at 612 348- 3046. Very Truly Yours, Thomas J. May Hennepin County Assessor Townships: Per Minnesota Statutes, Section366.01, subdivision 1, the supervisors of each town constitute the town board. Two supervisors constitute a quorum at a town board meeting unless the town is operating under "option A," which means it has a five-member board of supervisors. In the latter case, three supervisors are required to me~t the quorum requirement. City councils: According to Minnesota Statutes, Section 412.191 , the city council in a standard plan city -shall consist of an elected mayor, an elected clerk, and three or :five elected council members (which means 1hese cities have either five or seven voting members). In optional plan cities, the City'council consists of an elected mayor and four or six elected council members (which means these cities have either five or seven voting members). In all statutory cities, the mayor is a voting member of the council and must be counted when determining whether a quorum is present. A majority of the voting members must be present to meet the quorum requirement. Charter cities may provide that a different number of council members constitutes a quorum. Special boards: Appointed by the governing body of a city, a majority of the voting members must be present in order to meet the quorum requirement. II 5#'0 --i- Each year, there are numerous complaints from property owners who have taken time off from work - or simply taken their personal time - to attend a local board meeting only to find that the meeting won't take place due to the lack of a quorum. When a local board does not meet because a majority of the members afenot present, it sends a message to , property owners that the board does not value their time. It also sends the message that the board does not take the responsibility of serving as the Local Board of Appeal and Equalization seriously. Assessor's role when a quorum isn't present Rather than simply sending home angry and frustrated property owners, it is recommended that the format change to an "open book" meeting with the assessor. Property owners can discuss their issues one~on-one with the assessor or the assessor's staff If they are not satisfied with the outcome, they ~can appeal to the County Board of Appeal and Equalization, This assures that the time property owners set aside to appeal to the local board is not wasted. Arrive on time for the meeting It is also very important that the board members and all required attendees (county assessor, local assessor, etc.) arrive at the meeting on time and that the meeting begins at the scheduled time. This shows respect for the people who are appealing to the board, and also shows that you value their time. "- Explanations of alternate methods of appeal Open book 'meetings Open book meetings are an alternative to t.~e Local Board of Appeal and Equalization. During "open book" meetings, the valuation and classification issues are handled by the assessor's staff on a one-on-one basis with the property owner. Typically, open book meetings are held by the county assessor's staff. However, larger cities with an appointed city assessor may hold their own open book meetings. . The open book meef.ngs are held in locations t~at are convenient for property owners. Often open book meetings are held over several days during both day and evening hours. This allows property owners to appeal when it best suits their schedules irtstead of having to rearrange their schedules to attend alocal board meeting held at one place and time. Explanations of alternate methods of appeal f11 The open book meetings provide a forum for property owners to meet with assessment staff on an informal basis to review information about their property and to ask questions about the assessment This setting allows the assessor's office to resolve questions and reduce the number of property owners who feel the need to appeal to the County Board of Appeal and Equalization. Property owners do not need to make an appointment to meet with the assessment staff They can simply show up at the dates and times stated on the Notice of Valuation and Classification, and an appraiser will discuss their assessment. Depending on the jurisdiction, the appraisers may have laptop computers to access information about the taxpayer's property. Some counties may be able to link directly to their computer-assisted mass appraisal (CAMA) system which allows the appraiser to obtain data on sales of comparable properties. When reviewing the details of the property with the owner, the appraiser can verify the accuracy of the county's data and correct any errors. The property owner can also schedule an appointment for the appraiser to view the property if needed. Benefits for the property owner Property owners often find that the open book meeting IS less intimidating than presenting their appeal to the LocalBoard of Appeal and Equalization. They often appreciate the fact that they can have their questions answered in a more private setting, and not have to be apprehensive about making a presentation in front of their friends and neighbors. In this one-on-one setting, property owners may spend as much time with the appraiser as they need. They can compare the value of their home with the values of similar homes owned by their neighbors. The process is very efficient because concerns and questions are often resolved mediately. Pioperty . owners can see that the appraiser collects the same information on all properties, reassuri..ngthem that the process is t..~e s3.t1J1e for everyone, and t~ey have not been singled out for a value increase. Property owners who are not satisfied with the "open book" approach may appeal to the County Board of Appeal and Equalization and/or appeal to Tax Court. m ..- 5 b,.5 Open book meetings An open book meeting is a meeting held by the county assessor's office to discuss property owners' questions regarding their assessments. The one-on- one meeting usually is held as an alternative to the LocalBoard of Appeal and Equalization. Benefits for property owners "Open book" mee~gs provide many benefits: · No appointment needed... · Property owners can verify or correct information about their property. · Property owners can schedule a time for the assessor to view their property. · The setting is less intimidating than a Local Board of Appeal and Equalization meeting. - The property owner does not need to ''present'' their appeal in front offriends and neighbors. · Property owners can compare their values to . the values of other similar homes. .. Questions and concerns are often resolved immediately. - The process is very efficient -Property owners may appeal to the County Board of Appeal and Equalization and/or to Tax Court ifnot satisfied with the outcome. It is only a recommendation that the property owner attend the open book meeting to discuss concerns prior "to the County Board of Appeal and Equalization. In a " jurisdiction that does not have a Local Board of Appeal and Equalization, the property owner is not required to attend an open book meeting in order to appeal to the County Board of Appeal and Equalization. Explanations of alternate methods of appeal _Benefits for the local board The benefit for the local board is that an open book meeting saves time for board members. It eliminates the -. need for the board to become familiar with and educated on the local real estate market. Board members will be able to spend this tirp.e concentrating on their other duties as town board or city council members. In addition,.board members can avoid confrontational situations with constituents and will no longer be put into difficult situations bY.!laving to make decisions about the property values or classifications of property owned by friends and neighbors. Benefits for the county While the number of appeals made at the open book meeting may not be less than the number of appeals to the local board, the benefit for the county is that the open book process all~ws for immediate consideration of issues, and in many cases, appeals are resolved before the County Board of Appeal and Equalization. The process is efficient for the county because it can often consolidate several jurisdictions into one meeting (or a series of meetings) instead of holding at least one meeting in each jurisdiction. Option 1 : Transferring assessment and local board duties to the county The town board or city council may transfer the powers and duties of the Local Board of Appeal and Equalization to the county board (under Minnesota Statutes, Section 274.01, subdivision 3) and no longer perform the function of a Local Board of Appeal and Equalization. However, in order to exercise this option, the local jurisdiction also must have its assessment done by the county. This means that the local jurisdiction must give up its local assessor. Some jurisdictions do not see this as an option, because they have no intention of relinquishing this power to the county, For other town boards or city councils, this may be a good option. Before transferring the powers and duties to the county board, the to~m board or cit'j council shall give public notice of the meeting at which the proposal for transfer is to be considered (the public notice shall follow the procedure contained in .Minnesota Statutes, . Section 13D.04, subdivision 2): 56~1o A town board or city council that wishes to transfer the assessment and local board duties to the county board must communicate this intent in writing to the county assessor before December 1 of any year to be effective for the following year's aSsessment. This transfer of duties may either be permanent or for a specified number of years. However, the duties must be transferred to the county board for a minimum of three years, and the length of the transfer must be stated in writing. A town or city may renew its option to transfer its duties to the county board. Property owners in jurisdictions that have chosen this option would be provided with an open book meeting in place of the Local Board of Appeal and Equalization. Property owners who are not satisfied with the outcome of the open book meeting may appeal to the County Board of Appeal and Equalization and/or to Tax Court. Option 2: Transferring local board duties t? the county Previously, the only option for transferring the local board duties to the county board meant that the local jurisdiction had to give up its local assessor as well. Some jurisdictions saw this option as a loss of control, and therefore, it wasn't considered to be an option for the city or town. The quorum and training requirements for local boards were implemented to improve the local board process so that the boards function fairly and objectively. The intent of the legislation was not to force or require a city or town to give up its local assessor. However, a jurisdiction that fails to meet these requirements must transfer the duties of the Local Board of Appeal and Equalization to the County Board of Appeal and Equalization. In this situation, the jurisdiction would lose the right to hold its local board, but it would be able to retain its local assessor. It seems unfair that a jurisdiction which voluntarily transfers its Local Board of Appeal and Equalization duties to the County Board of Appeal and Equalization must give up its local assessor, while a local board that /must transfer its du~ies to the .county -board for failing to meet the training or quorum requirements may retain its local assessor. Explanations of alternate methods of appeal fa It seems appropriate that the local jurisdiction be given the opportunity to decide to forego its right to act as a Local Board of Appeal and Equalization and still maintain its local assessor. If the town board or city council deems that property owners would be best served with an open book meeting, which also would relieve the board from having to make difficult value and classification decisions, the board or council c should contact the county ass~sor and inform him/her of the jurisdiction's intent to be treated as though it did not meet the quorum. or training requirements. It should clarifY that the city or town is transferring its duties to the county board, but will retain its local assessor. The town board or city council must notifY the county assesSor of this decision in writing by December I to be effective for the following assessment year. Property owners in a jurisdiction that has chosen to transfer its Local Board of Appeal and Equalization duties to the County Board of Appeal and Equalization would be provided with an open book meeting in plaCe of the local board. Property owners who;rre not satisfied with the outcome of the open book meeting may appeal to the County Board of Appeal and Equalization and/or to Tax Court. II Appendix Glossary 58-7 The local board can be reinstated by resolution of the governing body of the city or town and upon proof of compliance with the training requirements. The resolution and proof of compliance must be provided to the county assessor by December 1 to be effective for the following assessment year. Special Boards of Appeal and Equalization The governing body of a city (including cities with charters that provide for a board of equalization) may appoint a Special Board of Appeal and Equalization. The city may delegate to the Special Board of Appeal and Equalization all of the powers and duties of the Local Board of Appeal and Equalization. The special board serves at the direction and discretion of the appointing body, subject to the restrictions imposed by law. The appointing body shall determine the number of members.of the board, the compensation and expenses to be paid, and the term of office of each member. At least one member appointed to the Special Board of Appeal and Equalization must be an appraiser, realtor or other persoll familiar with property valuations in the assessment district. . Abatement - Reduction of estimated market value, taxes, costs, penalties or interest which have been erroneously or unjustly paid. Adjourn - The final closing of a meeting, such as a meeting of the board of directors or any official gatllerlllg. Adjol11l1 is not to be.confused with "recess;" which means t.~e meeting\vill bre2k a11d then continue at a later TIIne. Agricultural property - Property including the house, . garage, fann buildings and fann land used for raising or cultivating agricultural produGfs. Defined in Minnesota Statutes as Class 2a agricultural homestead or Class 2b agricultural non-homestead property . . Apartment property - Residential real estate containing four or more urJts and used or held for use by tt~e owner or by the tenants or lessees of the owner as a residence for rental periods ono days or more. Defined in Minnesota Statutes as Class 4a rental housing. ED Appendix AGENDA SECTION: AGENDA ITEM # REpORT # CnnRent: 'iC 117 ........ STAFF REpORT RICHFIELD CITY COUNCIL MEETING MAY 8, 2007 REpORT PREP ARED By: KRISTIN ASHER, ASSISTANT CITY ENGINEER NAME, TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: Er . REVIEWED By CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of a resolution affirming and ratifying submittal of an application to Hennepin County for an Environmental Response Fund Grant for the development of a Response Action Plan and a Construction Contingency Plan for environmental clean up work on the 6545 Portland Avenue South (BP Gas Station) property. L RECOMMENDED ACTION: By Motion: Adopt the attached resolution affirming and ratifying City'.s staff submittal of an application to Hennepin County for a Environmental Response Fund Grant for the development of a Response Action Plan, a Construction Contingency Plan, and clean up dollars for the environmental clean up work on the 6545 Portland Avenue South BP Gas Station ro ert . I n. BACKGROUND I . Hennepin County has a grant program for investigation and cleanup of potentially contaminated property within the County. It is appropriate to submit an application to access funds to assist with the develgpment of plans on how to clean up the contaminated property and, in addition, for funds needed to clean 0508Hennepin County EFR Grant Application up the property located in the northwest corner of the 66th Street and Portland Avenue intersection. . The grant would fund: o the development of a plan for clean up priorto construction of the intersection and, o part of the actual clean up activities. . The mitigation of contamination is required before a property can be redeveloped. The environmental work that could be completed using this grant funding would include: a Response Action Plan, a Construction Contingency Plan, and partial funding for any required clean up determined from the plans. . A requirement of the grant process is that a resolution indicating City Council support of the application mustbe passed within 30 days of submittal, The application was submitted on May 1, 2007, the deadline. I III. BASIS OF RECOMMENDATION I I A. POLICY I . It is appropriate to seek outside funding whenever possible. I B. CRITICAL ISSUES I . At the time of closing on the property (6545 Portland), the City agreed to apply for these funds on behalf of the former owner of the BP Amoco Station. . Any contamination on the property needs to be cleaned up prior to converting the remnant parcel into park land. I C. FINANCIAL I . No local match is required for the grant. . If a grant is not received the former owner of the property will be responsible for funding the clean up. I D. LEGAL I . The program guidelines require the City Council to pass a resolution in. support of the application. I IV. ALTERNATIVE RECOMMENDATION(S) I . Deny authoriiation and directstaff to withdraw the application. I V. ATTACHMENTS I . Resolution authorizing application to Hennepin County for Environmental Response Fund Grant funding. . I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . N/A . . 5C- - ( RESOLUTION - NO. RESOLUTION AFFIRMING AND RATIFYING CITY'S STAFF SUBMITTAL OF AN APPLICATION TO HENNEPIN COUNTY FOR ENVIRONMENTAL RESPONSE GRANT FUNDS FOR 6545 PORTLAND AVENUE SOUTH WHEREAS the City of Richfield (the "City") is a city locatea within Hennepin County and is therefore eligible to access the Environmental Response Fund (ERF) Grant; and WHEREAS the City has the institutional, managerial and financial capability to ensure adequate project administration; and WHEREAS the City certifies that it will comply with all applicable laws and _~ regulations as stated in the contract agreements; and NOW, THEREFORE BE IT RESOLVED that the City Council affirms and ratifies the . submittal of applications to Hennepin County Department of Environmental Services on behalf -of the City of Richfield and authorizes the Mayor and City Manager to execute such agreements as are necessary to implement the project on behalf of the applicant. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk AGENDA SECTION: AGENDA ITEM # REpORT # CONSENT 5D 118 ..... STAFF'REpORT RICHFIELD CITY COUNCIL MEETING MAy 8, 2007 REpORT PREPARED By: CORRINE THOMSON, CITY ATTORNEY NAME, TITLE COUNCIL PRESENTER: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of resolution adopting City Council Rules of Procedure and Decorum. I. RECOMMENDED ACTION: By Motion: Approve the resolution adopting City Council Rules of Procedure and Decorum. I II. BACKGROUND I The Richfield City Council Rules of Procedure and Decorum were approved by the City Council on July 23, 2001. Due to the recent change in the start time for regular City Council meetings, the Rules of Decorum and Procedure are now out of date. The proposed resolution would re-adopt the existing rules, with one modification to reflect the recent change in the starting time for regular City Council meetings. I III. BASIS OF RECOMMENDATION I I A. POLICY I . The City Charter provides that the Council, by resolution, may set their Rules of Procedure and Decorum. . Regular Council meetings are now held on the second and fourth Tuesdays of each month at 7:00 p.m. at the City Hall. 0508Rules I B. CRITICAL ISSUES I . The attached Rules of Procedure and Decorum have been revised to reflect the Council's request regarding the start time of Regular City Council meetings. I C. FINANCIAL . ' N/A I D. LEGAL . None. I IV. ALTERNATIVE RECOMMENDATION(S) I . Revise the Rules of Procedure and Decorum as appropriate. . Defer action on this matter to a future Council meeting. I V. ATTACHMENTS . Resolution. . Rules of Procedure and Decorum I VI. PRlNCIP AL PARTIES EXPECTED AT MEETING . None. 5D-) RESOLUTION NO. RESOLUTION ADOPTING RULES OF PROCEDURE AND DECORUM FOR CITY COUNCIL MEETINGS WHEREAS, it is appropriate for the City Council to establish rules of procedure and decorum for council meetings and Board and Commission meetings; and WHEREAS, the Richfield City Code, section 205.13, subd. 2(c) provides that the City Council may adopt such special rules by ordinance or resolution from time to time as necessary; and WHEREAS, the City Council has determined that it is appropriate to adopt these special rules of procedure and decorum. NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council of the City of Richfield, as follows: 1. The attached rules of procedure and decorum are hereby established. 2. These rules shall remain in effect until modified by resolution of the City Council. This resolution supercedes Resolution No. 9115. 3. These rules shall be interpreted, wherever possible, so as to be consistent with the rules set forth in the City Code. In the case of any irreconcilable conflict between these rules and the rules in the City Code, the rules in the City Code shall prevail. Adopted by the City Council of the City of Richfield this 8th day of May 2007. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk SECTION 1. Subd. 1. SECTION 2. Subd. 1. Subd. 2. SECTION 3. Subd.1. Subd. 2. Subd. 3. Subd. 4. SECTION 4. Subd.1. SD-J. RICHFIELD CITY COUNCIL RULES OF PROCEDURE AND DECORUM PURPOSE General. It is recognized that in order to enhance the concept of effective and democratic government, it is essential that a legislative body establish formal rules of procedure and decorum so that a true deliberative process will be observed and not disturbed. - GENERAL Law. The City Charter, Ordinances and State Statutes governing the City Council shall be followed and supplemented by the Rules of Procedure and Decorum of the City Council. General Rules. In all matters of parliamentary procedures, the Council shall be governed by the latestprinted edition ofthe STURGIS STANDARD CODE OF PARLIAMENTARY PROCEDURE as published from time to time except as modified by these rules and the rules set forth in Section 205 of the City Code. COUNCIL MEETINGS Reoular Meetinos. Regular meetings of the Council shall be held, without necessity for notice, every second and fourth Tuesday commencing at 7:00 p.m. in the City Council Chambers, 6700 Portland Avenue, Richfield, Minnesota. Other Locations. The Council may, from time to time, elect to meet at other locations within and outside the City and upon such election shall give public notice of the change of location in accordance with State law and the City Charter. Location Durino Local Emeroency. If, by reason of emergency, it shall be unsafe to meet in the City Hall, the meetings may be held for the duration of the emergency at such other place as may be designated by the Mayor or designate. Special Meetinos. The Mayor or any two members of the Council may call a special meeting of the Council upon at least 12 hours written notice to each member of the Council. The notice shall be delivered personally to each member or shall be left at the Council Member's usual place of residence with some responsible person. Special meeting notices will not be published, but will be posted at City Hall, the Hennepin County Library located within the City and the City's Community Center. PRESIDING OFFICER Who Presides. The Mayor shall preside at all meetings of the Council. In the absence of the Mayor, the Mayor Pro Tern shall preside. The presiding officer shall have the power to preserye strict order and decorum at meetings, enforce the rules of procedure, and determine without debate, subject to the final decision of the Council on appeal, all questions of procedure and order. Subd. 2. Subd. 3. SECTION 5. Subd. 1. Subd. 2. Subd. 3. Subd.4. Subd. 5. 50--3 Appeal of the Rulinq of the Presidinq Officer. Any member of the Council may appeal from a ruling ofthe presiding officer. If the appeal is seconded, the member may speak once solely on the question involved and the presiding officer may explain the ruling, but no other Council Member shall participate in the discussion. The appeal shall be sustained if it is approved by a majority vote. Riqhts of the Presidinq Officer. The presiding officer may speak on any question and make motions and second motions. AGENDA Matters for Consideration. Matters for Council action shall be submitted by members of the Council and residents to the City Manager. ~ Preparation. An agenda of business for each regular meeting shall be prepared in the office of the City Manager and completed by 4:30 p.m. on the Friday preceding a meeting. Copies thereof delivered to each Council Member as far in advance of the meeting as time for preparation will permit. Order of Business at Reqular Meetinqs. At the hour appointed for the regular meeting of the City Council, the meeting shall be called to order by the presiding officer. If a quorum is present, the City Council shall then proceed with its business in the following manner: (a) approval of minutes of previous meeting (b) presentations (c) Council discussion (d) agenda approval (e) consent calendar (f) public hearings (g) proposed ordinances (h) resolutions (i) City Manager's report U) other business Varvinq Order of Business. The presiding officer may vary the order of business. Minutes. Subdivision 1. Approval of Minutes. The clerk shall provide a printed copy bf the minutes of each meeting to each Council Member as soon as possible after each meeting. If such printed copies have been distributed to Council Members in advance of the next regular meeting of the Council the minutes may be approved without verbatim reading. Amendments or corrections proposed by any member of the Council shall be made by the clerk, but no amendment to which objection is raised by any member shall be made without the approval of a majority of the Council. Subd.2. General Contents of Minutes. The'c1erk shall record all material matters considered by the Council in the minutes. Minutes shall be summary minutes. Ordinances, resolutions, communications and claims considered by the Council need not be recorded in full in the minutes if they appear in other permanent records of the clerk and can be accurately identified from the description given in the minutes. The Council may in its discretion direct that anyone of the above be fully set out in the minutes. Subd. 6. Subd.7. Subd. 8. Subd. 9. 5f)-~ Consent Aqenda. In the preparation of the agenda for a meeting, the City Manager may place certain items of business on a consent calendar. A . member of the Council wishing to remove any item from the consent calendar may do so at the time that the consent calendar is reached on the general Council agenda. Any item removed from the consent calendar shall become one of the regular agenda items of the meeting. All items not so removed from the consent calendar may be passed by a single, non-debatable motion. Matters proposed by the City Manager for the consent agenda shall be those that the Managerdeems to be of a routine, non-controversial nature. Items Not on the Aqenda. The Council may consider items not appearing on the agenda as normal business if a Council Member does not raise an objection. If a Council Member raises an objection, a vote of the majority of the Council Members present shall determine the appropriateness of further consideration of the matter at that time. The Council may not take action on any item that requires public notice or hearing. Presentation of Aqenda Item. The City Manager shall introduce each agenda item, unless done so by a Council Member, followed by the presiding officer's opening of the item for Council discussion. Oral summaries of Staff Reports on agenda items will not be given, but the City Manager and appropriate staff will stand for questions and clarification on items. Public Participation. Members of the public may address the City Council during: (a) Public hearings. (b) Open Forum. Prior to the commencement of the official business of the Council at regularly scheduled Council meetings, members of the public will be afforded the opportunity to address the Council on City business and items that are not on the meeting's agenda. Open Forum will be limited to a total of 15 minutes and each speaker will be limited to 3 minutes. Individuals will not be permitted to give their time to others. All persons wishing to speak during the Open Forum may register either with the City Manager's office no later than 4:00 p.m. on the day of the regularly scheduled Council meeting or by completing an Open Forum registration card and returning it to a staff member. Registration shall include their name, address and the topic on which they wish to speak. Staff will provide a list of the Open Forum speakers to the presiding officer at the start of each Open Forum. Those who registered with the City Manager's office will be allowed to speak first, followed by those completing the registration card, and then by members of the audience wishing to speak. If there are more people registered than time allows, the Council may, after a majority vote of the City Council, provide a second Open Forum limited to a total of 15 minutes directly before the SECTION 6. Subd.1. Subd. 2. Subd.3. Subd. 4. SECTION 7. Subd.1. sD-tj adjournment of the meeting. Speakers will be restricted to 3 minutes each. Speakers will not be permitted to make direct or inferred comments on personality conflicts with City Council, commission or staff members and speakers who make personal attacks, campaign endorsements orcampaign statements will lose the opportunity of addressing the Council in Open Forum. City Council will not take official action on items discussed during Open Forum, except to refer items to -staff or commission for future report. Council Members may ask questions for clarification purposes, but they may wish to investigate or research issues before responding. City Councilor staff members will respond at a later date by letter, telephone or in person. (c) The Open Forum shall not be videotaped or cablecast. Specific issues scheduled on the agenda, other than public hearings, if no Council Member raises an objection. If a Council Member raises an objection, a vote of the majority of Council Members present shall determine the appropriateness of accepting public comment on the matter under consideration. Items coming before the Council from the Planning Commission, HRA and other boards and commissions that do not require a public hearing may, by a majority vote of the Council, be the subject for public discussion. (d) VOTING Procedure. The votes of the members on any ordinance, resolution or motion pending before the Council shall be by voice vote, unless the Mayor or any Council Member requests that a roll call vote be taken. The presiding officer shall call for a roll call vote whenever a voice vote of the Council is not clear as to the disposition of the action before the Council. VotinQ Order for Roll Call. The clerk shall call for the vote in consecutive order of wards. The presiding officer shall always vote last. Discussion Prior to the Vote Prior to the Vote on Anv Aqenda Item or Council Action RequirinQa Vote. Council Members are encouraged to publicly express their reasons for the vote that they will cast on any issue before the Council requires a Council vote. Excused From VotinQ. A Council Member may be excused from voting on a matter properly before the Council only with the unanimous consent of the other members present, unless the member is required by law to abstain from voting. The Council Member must announce the member's intention to abstain prior to the vote being taken. The clerk shall record the abstention as "Abstain-name." RULES OF DECORUM Council. While the Council is in session, the members must preserve order and decorum, and a member shall neither, by conversation or otherwise, delay or interrupt the proceedings or the peace of the Council . Subd. 2. Subd.3. Subd. 4. Subd. 5. Subd. 6. Subd.7. Subd. 8. Subd. 9. 5tJ-ltJ nor disturb any member while speaking or refuse to obey the orders of the presiding officer. Recoanition. Members of the Council shall firstbe recognized by the presiding officer prior to addressing any other Council member, staff or member of the public. First names will not be used to address Council Members, staff or members of the public. Discussion. At the request of any Council Member or the Mayor, Council discussion shall be limited as provided in this subdivision. When the rules of this subdivision are invoked, no member of the Council shall speak more than twice on any question, nor more than five minutes each time without consent of the Council. Staff. Members of the City staff shall observe the same rules of order and decorum as are applicable to the City Council. Pertinent to Matter Under Debate. Members of the Council, staff and public shall confine remarks to the matter under debate. AddressinQ the Council. Each member of the public addressing the Council shall step up to the microphone provided for the use of the public and after being recognized by the presiding officer give his/her name and address in an audible tone of voice for the records, state the subject to be discussed, and state who the speaker is representing if representing an organization or other persons. All remarks shall be addressed to the Council as a whole and not to any member thereof. No person other than members of the Council and the person having the floor shall be permitted to enter into any discussion, either directly or through a member of the Council, without permission of the presid ing officer. No question may be asked a Council Member or a member of the staff without the permission of the presiding officer. The presiding officer may impose a three-minute time limit on remarks by speakers, whenever in the presiding officer's judgment, a time limit is necessary in order to expedite the progress of the meeting or ensure the opportunity for other speakers to be heard. The City Council may by majority vote extend the time limit imposed by the presiding officer. Spokesman for Group of Persons. In order to expedite matters and to avoid repetitious presentations, whenever any group of persons wishes to address the Council on the same subject matter, it shall be proper for the presiding officer to request that a spokesperson be chosen by the group to address the Council and, in case additional matters are to be presented by any other member of said group, to limit the number of such persons addressing the Council. After Motion. After a motion has been made or a public hearing has been closed, no member of the public shall address the Council from the audience on the matter under consideration without first securing the permission to do so by a majority vote of the City Council. Conduct. Any member of the Council, staff or person indulging in personal attacks or making impertinent, slanderous, or profane remarks or whowillfully utters loud, threatening or abusive language, or engages in any disorderly conduct which would impede, disrupt, or disturb the orderly Subd. 10. SECTION 8. Subd. 1. Subd. 2. Subd.3. Subd. 4. Subd. 5. SECTION 9. Subd. 1. Subd. 2. 5 ()- 7 conduct of any meeting, hearing or other proceeding, shall be called to order by the presiding officer and, if such conduct continues, may at the discretion of the presiding officer, be ordered barred from further audience before the Council during that meeting. Members of the Audience. No person in the audience shall engage in disorderly conduct such as hand clapping, stamping of feet, whistling, using profane language, yelling, and similar demonstrations, which conduct disturbs the peace and good order of the meeting. If, after being . cautioned to cease and desists from such behavior, the behavior continues, the presiding officer may call a recess until such time that the members of the audience refrain from such conduct. ENFORCEMENTS OF DECORUM Warninq. All persons shall, at the request of the presiding officer, be silent. If, after receiving a warning from the presiding officer, a person persists in disturbing the meeting, said officer may order the person removed from the meeting. If the person does not remove himself/herself, the presiding officer may order that the Sergeant-at-Arms remove the person. Serqeant-at-Arms. The Public Safety Director, or such member or members of the Police Department, shall be Sergeant-at-Arms of the Council meetings. The Public Safety Director or such member or members of the Police Department shall carry out all orders and instructions given by the presiding officer for the purpose of maintaining order and decorum at the Council meeting. Upon instruction of the presiding officer it shall be the duty of the Sergeant-at-Arms to remove from the meeting any person who intentionally disturbs the proceedings of the Council. Resistinq Removal. Any person who resists removal by the Sergeant-at- Arms may be charged with violating City ordinance. Motions to Enforce. Any Council Member may move to require the presiding officer to enforce these rules and the affirmative vote of a majority of the Council shall require the presiding officer to do so. Adiournment. In the event that any meeting is willfully disturbed by a person or group of persons so as that orderly conduct of the meeting is not feasible, and when order cannot be restored by the removal of individuals who are creating the disturbance, the meeting maybe adjourned with the remaining business considered at the next regular meeting or at a special meeting called by the presiding officer. WORKSESSION MEETINGS General. Worksesslon meetings of the City Council may be held at the call of the Mayor. No official Council action will be taken at Worksession meetings. Rules of Procedure and Decorum. The Rules of Procedure and Decorum of the City Council shall be observed in Worksessions so far as they are applicable. 50- <8 Subd. 3. Audio RecordinQ of Worksessions. All Council Worksessions shall be audio taped and maintained in the same manner used for recording and maintaining audio tapes for regular meetings of the Council. SECTION 10. CAMERA AND RECORDING DEVICES Subd. 1. . Use of Cameras and RecordinQ Devices Limited. Cameras, including television and motion picture cameras, electronic sound recording devices and any other mechanical, electrical or electronic recording devices may be used in the Council Chamber, but only in such a manner as will cause a minimum of interference with or disturbance of the proceeding of the Council. SECTION 11. SEPARABILITY Subd. 1. General. If any section, subdivision, sentence, clause, phrase or portion of these Rules of Procedure and Decorum is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portions thereof. SECTION 12. ITEMS PRESENTED TO COUNCIL Subd.1. General. Any and all written materials, documents and other materials presented to the City Council at a Regular, Special or Worksession meeting including but not limited to maps, models, pictures and drawings shall become the property of the City. SECTION 13. ORDINANCES AND RESOLUTIONS Subd. 1. Introduction and Adoption. All legislation of the City shall be by ordinance. Ordinances, resolutions and other matters requiring Council action shall be introduced by a member of the Council. The Manager may present ordinances, resolutions and other matters for consideration. Subd. 2.' ReadinQs. Every ordinance shall receive two readings before the Council prior to final adoption. An ordinance need not be read in full unless a member of the Council requests such a reading. Subd. 3. EmerQency Ordinances. An emergency ordinance is an ordinance necessary for the immediate preservation of the public peace, health and morals, safety, or welfare in which the emergency is defined and declared in the preamble. An emergency ordinance must be adopted by the unanimous vote of the Council Members present. Subd.4. Amendments. Amendments may be made to a proposed ordinance after either its first or second reading. Subd. 5. City Charter Provisions. The procedure for the adoption of ordinances and resolutions shall conform to the requirements of the Charter. Subd. 6. Public HearinQ Requirements. Public hearings will be held only for those matters required by State law or City Charter. SECTION 14. ATTENDANCE AT COUNCIL MEETINGS Subd. 1. SECTION 15. Subd. 1. 5l)~ g Attendance at Council MeetinQs. Attendance of Council Members at meetings is one of the most important duties imposed by law on members. Member presence to participate in the hearings, delib- erations and decisions of the Council is essential to the proper discharge of the member's official duties. Recognizing that it is not always possible for a member to be present at all meetings, and that by reason of business demands, state of health, personal problems, vacations and other matters occasional absences are excusable, the following rules apply to absences of Council Members from meetings when invoked by resolution of the Council: (a) such rules shall remain in effect until the end of the calendar year during which the resolution is passed unless revoked prior to that time by resolution of the Council; (b) unless excused by a majority of the City Council, a member of the Council may not be absent from any regular meeting or from such special meetings as the Council may specify in the resolution; (c) for each unexcused absence from a regular or special meeting of the Council each Council Member may be penalized by a fine of not to exceed $75, and the Mayor may be penalized by a fine of an amount not to exceed $100, but the resolution may specify a lesser penalty for absence from a special meeting than a regular meeting; (d) any member of the Council desiring to be excused shall insofar as possible give advance notice to the Manager, stating (i) the meeting at which the member will be absent, (ii) the member's reason for being absent and, (iii) the member's location during the meeting. RULES OF ORDER Suspension of Rules. The operation and effect of a rule set forth in this subsection may be suspended upon the unanimous vote of the Council. (Rev. 07/23/01 ) (Rev. 12/10/01) (Rev. 05/08/07) AGENDA SECTION: AGENDA ITEM # REpORT # Consent: 5E 119 .... STAFF REpORT RICHFIELD CITY COUNCIL MEETING MAY 8, 2007 REpORT PREPARED By: BRIAN YOUNG UTILITY SUPERINTENDENT NAME, TInE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of award of contract for the Penn Avenue Tower Reconditioning Project. 1. RECOMMENDED ACTION: By Motion: Adopt a resolution approving the bid minutes and tabulation and award of contract to TMI Coatings, Inc. in the amount of $333,100. I II. BACKGROUND l The 1.5 million gallon Penn Waler Tower a164: and Penn Avenue was buill in 1963. In 2006 the engineering firm of Short Elliot Hendrickson Inc. performed an evaluation of the overall condition of the tower. Based on their observations, the 2007 Budget includes $350,000 for repair of Penn Tower. The engineers at SEH prepared plans and specifications for complete reconditioning and repairing of the tank interior. TMI Coatings Inc. was the lowest responsible bidder at $333,100. I III. BASIS OF RECOMMENDATION I A. POLICY 0508Penn Tower . The project was published in the Sun Current on March 29, 2007 and April 6, 2007 . Abid opening was held on April 12, 2007. . TMI Coatings Inc. was the lowest bidder at $333,100. I B. CRITICAL ISSUES I . The interior coating system is in poor condition and several maintenance issues need to be addressed. I C. FINANCIAL I . The $350,000 Penn Avenue Tower project is included in the 2007 Budget. I D. LEGAL I . All contracts or purchases in excess of$25,000 require Council approval. . All contracts or purchases over $50,000 require sealed bids to be solicited by public notice. . TMI did not attend a pre-bid conference as required in the instructions in the specifications. TMI was unable to download the specifications from the host site to receive the instructions. However, TMI was provided the information from the pre-bid conference and agreed to be bound by its bid prior to submitting its bid. Legal counsel has determined that the failure to attend the pre-bid conference is an irregularity that the Council may waive. I IV. ALTERNATIVE RECOMMENDATION(S) I , . Council could reject all bids and instruct staff to re-advertise. It is the opinion of staff that the bid submitted by TMI Coatings, Incis reasonable and responsible. I v. . ATTACHMENTS . Resolution . Bid Tabulation I VI. PRINCIP AL PARTIES EXPECTED AT MEETING . None 5/?-- \ RESOLUTION NO. RESOLUTION APPROVING THE BID TABULATION AND AWARDING CONTRACT TO TMI COATINGS, INC. WHEREAS, the City advertised for bids for the reconditioning of the Penn Avenue water tower; and WHEREAS, the bid advertisement informed bidders that plans and specifications could be obtained electronically from a designated web site; and WHEREAS, the bid advertisement did not inform bidders of a mandatory pre-bid conference, to be held on April 5, 2007,but that information was contained only in the plans and specifications; and WHEREAS, the purpose of the pre-bid conference was to visit the site and make bidders aware of physical constraints at the site; and WHEREAS, due to technical difficulties, TMI was unable to download the plans and specifications from the designated web site and did not become aware of the pre-bid conference until after April 5, 2007; and WHEREAS, TMI promptly contacted the City's consulting engineers and informed itself of the purpose of the pre-bid conference and also visited the site and familiarized itself with the site constraints; and WHEREAS, prior to the bid opening, TMI notified the City of its intent to bid and represented that it was aware of the physical constraints of the site; and WHEREAS under all of the circumstances, TMl's failure to attend the pre-bid conference is a minor irregularity that may be waived. NOW, THEREFORE, BE IT RESOLVED as follows: 1. The bid minutes and tabulation for the Penn Tower Reconditioning contract are approved. 2. The failure of TMI Coatings, Inc. to attend the pre-bid conference is waived as a minor irregularity. 3. The contract for the Penn Tower Reconditioning project is awarded to TMI Coatings, Inc. in the amount of $333,200. Adopted this 8th day of May 2007. Debbie Goettel, Mayor Nancy C.Gibbs, City Clerk 5GrJ-. CITY OF RICHFIELD, MINNESOTA Bid Opening April 12, 2007 2:00 p.m. Reconditioning Penn Avenue Tower Bid No. 07-34 Pursuant to requirements of Resolution No.1 015, a meeting of the Administrative Staff was called by Nancy Gibbs, City Clerk, who announced that the purpose of the meeting was to receive, open and read aloud, bids for reconditioning of Penn Avenue Tower, bid no. 07-34, as advertised in the official newspaper on March 29,2007 and April 6, 2007. Present: Deborah Guiher, Deputy City Clerk Cheryl Krumholz, City Manager Representative Robert Hintgen, Utility Supervisor The following bid was submitted and read aloud: Bidder's Namer Bid Bond Total Deduct Base Bid Classic Protective Coatings Provided $479,667.00 $0 TMI Coatings Painting & Restoration Provided $333,100.00 $0 Contractors The Deputy City Clerk announced that the bids would be tabulated and considered at the April 24, 2007 City Council Meeting. Deborah Guiher Deputy City Clerk AGENDA SECTION: AGENDA ITEM # REpORT # Consent 5F 120 ...... STAFF REpORT RICHFIELD CITY COUNCIL MEETING MAY 8, 2007 REpORT PREPARED By: LIEUTENANT TODD SANDELL NAME. TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consider an agreement with Hennepin County Department of Human Services and Public Health to accept fundinQ for a police cadet proQram. I. RECOMMENDED ACTION: By Motion: Approve the attached resolution to accept funding from the Hennepin County Department of Human Services and Public Health for a police cadet program and the Human Services and Public Health Department Provider Agreement. I II. BACKGROUND I The Richfield Police Department has accepted a grant from Hennepin County for the Joint Community Police Partnership (JCPP). One component of the partnership is the police cadet program. The police department is seeking qualified individuals who desire a career in law enforcement in a growing and diverse suburban community. Cadet applicants participate in a competitive selection process that must demonstrate both their suitability for police employment and the existence of exceptional diversity skills, knowledge and connections. 0508 Resolution to Accept Grant Funds from Hennepin County for JCPP Cadet Program I III. BASIS OF RECOMMENDA nON J The Joint Community Police Partnership and the Police Cadet Program are designed to better address the diverse needs of Richfield's diverse cultures and communities and enhance the safety and well being of the residents. I A. POLICY I . The selection process involves an application review, and oral interview, a thorough background investigation, Chief's interview, a medical exam including drug test and psychological exam. I B. CRITICAL ISSUES . N/A I C. FINANCIAL I . Hennepin County will provide funding to accommodate cadet's salary, fringe benefits, testing, uniforms and equipment, tuition assistance, books, supplies and application fees not to exceed $30,000 for 2007. I D. LEGAL I . Contract agreement with Hennepin County. I IV. ALTERNATIVE RECOMMENDATION(S) I . Not to initiate a police cadet program by not accepting the terms of the Hennepin County agreement. I V. ATTACHMENTS I . Resolution to Accept Agreement for Police Cadet Funding. 1 VI. PRINCIPAL PARTIES EXPECTED AT MEETING . None 5 P-I RESOLUTION NO. RESOLUTION AUTHORIZING THE DEPARTMENT OF PUBLIC SAFETY/POLICE TO ACCEPT FUNDING FROM THE HENNEPIN COUNTY DEPARTMENT OF HUMAN SERVICES AND PUBLIC HEALTH FOR A POLICE CADET PROGRAM WHEREAS, the County of Hennepin, State of Minnesota, through the Hennepin County Human Services and Public Health Department, has identified the City of Richfield as a segment of the County that is in need of Cadet Training services; and, WHEREAS, the County of Hennepin has funds available and wishes to purchase such services from the City of Richfield/Police; and, WHEREAS, the City of Richfield/Police will provide Cadet Training services through a cost reimbursement contract described as "training and educational opportunities in conformance with police department rules and procedures, and will provide recruitment, interviewing, supervision, support and training to selected cadets;" and, WHEREAS, Richfield Public Safety/Police has agreed to the terms as set forth in the Human Services and Public Health Department Provider Agreement and will sign such agreement upon Council approval of this resolution; and, WHEREAS, City Manager Steve Devich and Public Safety Director Dan Scott are hereby,authorized to execute such agreement, and Dan Scott is authorized to facilitate and make available whatever is needed to carry out the terms of the agreement; and, WHEREAS, the agreement will be in effect from May 1, 2007 through December 31,2008. NOW, THEREFORE, BE IT RESOLVED that the City of Richfield, Public Safety Department will accept the provisions of the agreement and receive reimbursement as detailed in the agreement for Cadet Training services. Adopted by the City Council of the City of Richfield, Minnesota this 8th day of May 2007. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk AGENDA SECTION: AGENDA ITEM # REpORT # Agenda 'iG 121 ....... STAFF REpORT RICHFIELD CITY COUNCIL MEETING MAY 8, 2007 REpORT PREPARED By: KRISTIN ASHER, ASSISTANT CITY ENGINEER NAME, TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: ~ ?t1~!2 (). SIGNATURE REVIEWED By CITY MANAGER: o ITEM FOR COUNCIL CONSIDERATION: Consideration of Pond Expansion Agreement expanding Adam's Hill Pond to fulfill stormwater requirements associated with a redevelopment project in Edina. 1. RECOMMENDED ACTION: By Motion: Authorize the Mayor and City Manager to enter into an agreement with Target Corporation and the City of Edina to increase the water holding capacity of within the subwatershed by dredging 2,377 cubic yards from Adam's Hill Pond or elsewhere within the watershed. I. II. BACKGROUND I TheAdam's Hill Pond Subwatershed is located in both Edina and Richfield. To accommodate additional storm water run-off associated with the redevelopment project proposed at 3460 West 70th Street in Edina both cities may agree to increase the water holding capacity within the subwatershed. The increase in capacity can be accommodated either by increasing the capacity of Adam's Hill Pond in Richfield or through other methods (Le., rain gardens) elsewhere within the watershed. 0508AdamsHiIIPond The increase in capacity is required to meet the water quality components put forth by the Nine-Mile Creek Watershed District. Dredging the pond promotes the use of regional ponding, where ever reasonable, to treat storm water runoff more effectively than through smaller ponds on redevelopment sites. Edina is also considering a rain garden to increase the capacity within the watershed. Any work completed at Adam's Hill Pond will be accomplished the next time the pond is dredged and the agreement allows until 2011 to complete the work. I III. BASIS OF RECOMMENDATION I I A. POLICY I . Richfield's Comprehensive Stormwater Management Plan recommends accommodating stormwater needs regionally where ever appropriate. . Nine-Mile Creek Watershed District has approved this method of stormwater treatment for the development. lB. CRITICAL ISSUES I . The additional stormwater runoff must be treated appropriately for regulating agencies to approve the projects. Water quality improvements can be achieved through the use of rain gardens or dredging at Adam's Hill Pond. . I C. FINANCIAL I . Target Corporation will provide $73,687 to accomodate these improvements. . The Community Services Commission is working with Richfield staff to define the extent of the improvement. I D. LEGAL I . The City Attorney will be available for questions. I IV. ALTERNATIVE RECOMMENDATION(S) I . Do not authorize the City Manager and Mayor to enter into the Adam's Hill Pond Expansion agreement. However, Edina's City Council has approved this development and not allowing the storm water requirements to be fulfilled may halt the project's progress. I V. ATTACHMENTS I . Pond Expansion Agreement with Target Corporation and the City of Edina. I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . None 'anticipated. ;: .. , , . 5b-l POND EXPANSION AGREEMENT THIS AGREEMENT, is made and entered into this _dayofMay, 2007, by and between Target Corporation ("Developer"),. and the CITY OF . EDINA, a Minnesota municipal corporation ("Edina"), and the CITY OF RICHFIELD, a Minnesota municipal. corporation ("Richfield"). RECITALS: A. Developer is the fee owner of certain realproperty located in the City of Edina, Hennepin County, Minnesota, at 3460 West 70ili Street on which Developer will be constructing a retail and grocery store on the site (the "Project"), B. The Project will cause additional storm water run-off. c.. The run-offfor this Project is within the Adam Hill Pond Subwatershed that is located in both Edina and Richfield. D. To accommodate the additional storm water run-off, Edina and Richfield have agreed to increase the water holding capacity (the "Dredging") of either the existing... storm water. detention pond (the "Pond") . located at .Adam Hill. Pond or elsewhere within this 'subwatershed, provided that Developer deposits $ 73,687 (the "Deposit") towards the cost thereof; E. Developerhas agreed to pay the Deposit to Edinapursuant to the terms of this Agreement. . F. Edina warrants that it will reimburse Richfield for all costs incurred by and in Richfield for this Dredging.. G. Developer warrants that it has the power and authority to enter into this Agreement. H.Edina and Richfield each warrant that it has the power and authority to enter into this Agreement. NOW, THEREFORE, inconsideration of the mutual covenantscorttained herein, Developer, Edina and Richfield agree as follows: 1. Dredging. Edina and Richfield agree to increase the water holding capacity within the subwatershed by dredging 2,377 cubic yards from the Pond or elsewhere within the watershed. . Edina and . Richfield agree to complete the Dredging on or before October 1,2011, subject to force majeure. 2. Payment of the Cost of Dredging. Developer has paid to Edina the Deposit to pay the cost of the Dredging. Edina agrees to hold the Deposit pending the Dredging. Richfield may utilize the Deposit to pay invoices of ~ontractors and engineers Target Pond Expansion Agreement Adam Hill Pond Subwatershed Page 1 4/25/07 . t ;'i> 5 6--d-- in connection with the dredging of the Pond. If the cost of the Dredging is less than the Deposit, Edina agrees to pay the excess to Developer within 15 business days after the completion of the Dredging. Upon completion of tIle Dredging, Edina an.d Richfield agree to provide Developer, on request, a detailed description of the costs incurred in the Dredging. If Edina and Richfield does not complete the Dredging on Or before October 1, 2011, as such date may he extended due to force majeure events, Edina shall forthwith refund the Deposit to Developer. 3. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be duly executed the date and year first above written, Target Corporation By Its CITY OF EDINA By Its Mayor And Its City Manager CITY OF RICHFIELD By Its Mayor And . Its City Manager Drafted by: City of Edina 4801 West 50th Street Edina, MN 55424 Target Pond Expansion Agreement Adam Hill Pond Subwatershed Page 2 4/25/07 AGENDA SECTION: AGENDA ITEM # REpORT # Public Hearing 7 122 ....... STAFF REpORT RICHFIELD CITY COUNCIL MEETING MAY 8,2007 REpORT PREPARED By: MELISSA POEHLMAN, PLANNING & ZONING ADMINISTRATOR NAME, TITLE COUNCIL PRESENTER: REVIEWED By CITY MANAGER: DEPARTMENT DIRECTOR REVIEW: ITEM FOR COUNCIL CONSIDERATION: Public hearing and consideration of a second reading of an amendment to Richfield Zoning Code Section 546 to allow variances processed in conjunction with another application to be heard and decided upon bv the City Council. I. RECOMMENDED ACTION: Conduct and close the public hearing and by motion: . Approve second reading of the attached ordinance relating to variances; amending subsections 546.03 and 546.09 of the City Code; and . Approve resolution authorizing summary publication of an ordinance relating to variances; amending subsections 546.03 and 546.09 of the City Code. I II. BACKGROUND I Historically the City Council has granted de facto variances as part of the regular approval process for other planning and zoning related requests, such as conditional use permits (CUP). For example, many redevelopment sites are unable to comply with the impervious surface requirements of the Code. The City Council has, on occasion, approved site plans that do not meet these requirements when it 050807 - 2nd reading ord. amend re: variances & sum publ has found that the intent of the ordinance is met. Acting as the Board of Adjustments and Appeals, the City Council does have the power to hear and decide variances; however, the Code currently states that this should only occur upon the expiration of the authority of the Hearing Examiners. The proposed ordinance amendment will allow the City Council to continue to act upon cases in the manner in which they have been doing. I III. BASIS OF RECOMMENDATION I I A. POLICY I . The recommended ordinance amendment will allow the City Council to hear and decide requests for variances when they are processed in conjunction with another planning and zoning request that requires City Council approval. . The City Council will have to find that all of the criteria for the granting of a variance exist: o Strict enforcement of the code would cause an undue hardship; o . There are unusual or unique circumstances; o The variance will not alter the character of the neighborhood; and o The variance is the minimum required to alleviate the undue hardship . The attached ordinance varies slightly from the ordinance approved at the first reading; however, the changes are minor and have not changed the intent of the ordinance. Changes have been made to clarify the procedures that the City Council will follow when hearing variance cases in conjunction with other planning & zoning requests. The City Attorney does not believe that these clarifications to the language of the ordinance require a new first reading. I B. CRITICAL ISSUES I . As currently written, the code requires that every request for a variance be heard by the Hearing Examiner. . The City Council has historically granted de facto variances through the site plan review process. . The Hearing Examiner hears all variance cases that do not require additional approval from the City Council. . If the City Council chooses not to amend the code, application processing will require additional staff time, an additional hearing, an additional fee for the applicant, and increased processing time. . Either the ordinance or procedures should be changed to minimize the possibility of litigation. . The City Attorney recommends that the City Council act now to correct this issue, rather than wait until additional code revisions are ready for consideration by the Planning Commission and City Council. I C. FINANCIAL . N/A I D. LEGAL . Other actions: o Planning Commission - The Planning Commission unanimously recommended approval of this amendment at its January 22, 2007 meeting. o The City Council unanimously approved a first reading of this amendment at its February 13, 2007 meeting. o Effective date -If adopted, changes will take effect 30 days after the approved resolution is published in the Sun Current newspaper. I IV. ALTERNATIVE RECOMMENDATlON(S) I . Reject the motion to amend Richfield City Code Subsections 546.03 and 546.09 and require that all variance requests be heard before the Hearing Examiner. I V. ATTACHMENTS . Ordinance . Resolution I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . Corrine Thomson, City Attorney 1-1 BILL NO. AN ORDINANCE RELATING TO VARIANCES; AMENDING SUBSECTIONS 546.03 AND 546.09 OF THE RICHFIELD CITY CODE THE CITY OF RICHFIELD DOES ORDAIN: Section 1. Subsection 546.03, Subdivision 4 of the Richfield City Code is amended to read as follows: Subd. 4. Powers. The Board shall have the following powers: a) to hear and decide appeals where it is alleged that there is an error in any order, requirement, decision, or determination made by the Director in the interpretation or enforcement of this code; b) to hear and decide variances to the literal provisions of this code upon the expiration of authority of the Committee of Hearing Examiners established by Section 546.09 of this code; c) to hear and decide variances to the literal provisions of this code when said variances are processed in coniunction with another planninq and zoninq application that requires the approval of the City Council: GjQ} to hear and decide appeals of any decision made final by the Planning Commission or by a Hearing Examiner. Sec. 2. Subsection 546.09, Subdivision 4 of the Richfield City Code is amended to read as follows: Subd. 4. Public hearing. Upon receipt of a completed application, the Director shall assign the application to one Hearing Examiner and a date shall be set for a public hearing before the Hearing Examiner. If the variance requires some other approval by the City Council in coniunction with another planninq and zoninq application. the Director shall assiqn the application to the Board of Adiustment and Appeals for consideration in coniunction with the other requests and a date shall be set for a public hearinq before the Board. Not less than 10 days prior to the public hearing, notice shall be published once in the official newspaper and sent by mail to all the owners of property located wholly or partially within 350 feet. Sec. 3. Subsection 546.09, Subdivision 5 of the Richfield City Code is amended to read as follows: Subd. 5. Decision. Not less than 60 days after receipt of a completed application, Within the time period required by state law. the Hearing Examiner or Board shall render a written decision regarding the application. unless written notioe of an extension is provided to the applicant. The notification must state tho reasons for the extension and its antioipated length, which may not exoeed 60 days unless approved by the applicant. If the Hearing Examiner fails to make a timely decision, 050807 - 2nd reading ord. amend re: variances & sum publ '7 ,.- J... tho v~lri:mce sh311 be deemed to have been 3pproved. The decision shall be supported by findings specifically related to the applicable criteria contained in this code. The decision shall be mailed to all parties of record and filed with the City Clerk. The Hearing Examiner's decision shall be final, subject to appeal to the Board. A decision of the Board shall be final. The Hearing Examiner or the Board may impose conditions in granting variances to effect the intent of this code and to protect adjacent properties. Sec. 4. Subsection 546.09, Subdivision 6 of the Richfield City Code is amended to read as follows: Subd. 6. Staff report. The Director shall provide a written report to the Hearing Examiner or the Board outlining the proposal and enumerating the various reasons for a recommendation to either approve or deny the variance request. The written report shall be filed with the Hearing Examiner or the Board at least 72 hours prior to the date of the hearing. Copies of the report shall be made available to the applicant, and shall be furnished to others upon request. Sec. 5. Subsection 546.09, Subdivision 7 of the Richfield City Code is amended to read as follows: Subd. 7. Powers of Hearing Examiner and the Board. A Hearing Examiner or the Board may call witnesses, subpoena relevant reports, and accept any evidence and testimony, which in the judgment of the Hearing Examiner or the Board is relevant to the issues being heard. Those in attendance at the public hearing shall have the right to present testimony and evidence. The Hearing Examiner or the Board may impose limitations on the number of witnesses and on the nature and length of testimony. Sec. 6. Subsection 546.09, Subdivision 9 of the Richfield City Code is amended to read as follows: Subd. 9. Appeals. Any person aggrieved by the decision of the Hearing Examiner may appeal such decision if a written notice of appeal is submitted to the Director within ten days of the date of the decision. The notice of appeal shall be addressed to the attention of the Board of Adjustments and Appeals. A decision of the Board is subiect to iudicial review as provided bv law. Sec. 7. Subsection 546.09, Subdivision 10 of the Richfield City Code is amended to read as follows: Subd. 10. Rehearing. Any applicant may within seven days of the date of filing of the Hearing Examiner~ or the Board's decision, apply for a rehearing of a variance request denied by the Hearing Examiner or the Board if significant new factual evidence relevant to the case not available to the applicant in the original hearing can be presented. The request for a rehearing shall state the nature of the new evidence and why it was not previously available. If an application for rehearing is timely made, the time to appeal will be extended until the decision on granting or denying a rehearing is made. If a rehearing is allowed, the Hearing Examiner~ or the Board's decision shall be withdrawn. 1-3 Sec. 8. Subsection 546.09, Subdivision 17 of the Richfield City Code is amended to read as follows: Subd. 17. Fee. The fee for a variance is set by Appendix D of the City Code. In the case of a request that requires both a variance approval and some other approval bv the Citv Council in coniunction with another plannino and zonino application, no additional application fee shall be required. Sec. 9. Subsection 546.09, Subdivision 18 of the Richfield City Code is amended to read as follows: Subd. 18. Annual Report. The committee of Hearing Examiners shall annually prepare a report for the Council and Planning Commission outlining the activities of the Hearing Examiners and the Board and making recommendations as to possible amendments to this code to expedite the processing of variances to the literal provisions of this code. Sec. 10. This ordinance shall be effective in accordance with Section 3.06 of the Richfield City Charter. Passed by the City Council of the City of Richfield, Minnesota this _ day of ,2007. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk 1-~ RESOLUTION NO. RESOLUTION APPROVING SUMMARY PUBLICATION OF BILL NO. WHEREAS, the City has adopted the above referenced ordinance; and WHEREAS, the verbatim text of the ordinance is cumbersome, and the expense of publication of the complete text is not justified; and WHEREAS, the following summary clearly informs the public of the intent and effect of the ordinance. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield that the following summary is hereby approved for official publication: SUMMARY PUBLICATION BILL NO. AN ORDINANCE RELATING TO VARIANCES; AMENDING SUBSECTIONS 546.03 AND 546.09 OF THE RICHFIELD CITY CODE On , 2007, the Richfield City Council adopted an ordinance designated as Bill No. , the title of which is stated above. This summary of the ordinance is published pursuant to Section 3.12 of the Richfield City Charter. The ordinance gives the Board of Adjustment and Appeals the power to hear and decide variances to the literal provisions of the City Code when the variances are processed in conjunction with another planning and zoning application that requires the approval of the City Council. Other provisions of Subsection 546.09 which relate to the variance application, hearing and appeal process were amended in order to reflect that the Board of Adjustment and Appeals also has the power to hear and decide variances in certain situations. Copies of the ordinance are available for public inspection in the office of the City Clerk during normal business hours or upon request by calling 612-861-9760 of the Community Development Division. Nancy Gibbs, City Clerk BE IT FURTHER RESOLVED, that the City Clerk is directed to keep a copy of the ordinance in her office at City Hall for public inspection and to post a full copy of the ordinance in a public place in the City for a period of two weeks, Adopted by the City Council of the City of Richfield, Minnesota this ,2007. day of . Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk AGENDA SECTION: AGENDA ITEM # REpORT # Resolutions 8 123 ...... STAFF REpORT RICHFIEL.D CITY COUNCIL MEETING MAy 8, 2007 REpORT PREPARED By: CHRIS REGIS, FINANCE MANAGER NAME, TiTLE COUNCIL PRESENTER: REVIEWED By CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of the resolution authorizing the issuance of revenue bonds to finance a multifamily housinQ development. I. RECOMMENDED ACTION: . By Motion: Authorize the Issuance, Sale, and Delivery Of Variable Rate Demand Multifamily Housing Revenue Bonds (Lyndwood Partners, LLC Project), Series 2007, Approving The Form Of And . Authorizing The Execution And Delivery Of The Bonds And Related Documents; Providing For The Security, Rights, And Remedies With Respect To The Bonds; And Granting Approval For Certain Other Actions With Respect Thereto. I II. BACKGROUND I . At the April 24, 2007 City Council meeting, a public hearing was conducted where a preliminary resolution was approved authorizing a multifamily housing development to be acquired, owned and operated by Lynwood Partners, L.L.C., and authorizing the issuance of revenue bonds to finance the costs of acquisition and rehabilitation of the development. . @ Home Apartments, a residential property management company and the parent company of Lynwood Partners, L.L.C., is making the request of the City for the issuance of tax exempt private activity revenue bonds for the purpose of acquisition and rehabilitation of Gateway Pointe, a 306-unit multifamily 050807Bonds Award of Sale rental housing development located at 7437 Lyndale Avenue South (the "Project"). . For the purpose of the Project, @ Home Apartments will loan the proceeds derived from the sale of the bonds to Lynnwood Partners, L.L.C., a single asset limited liability company formed by the developer. . The aggregate principal amount of the proposed bonds is $15,445,000. The. bond proceeds will be used for acquisition and rehabilitation of the property . A combination of bond proceeds and equity of approximately $3.5 million will fund rehabilitation of the project. . Staff has met with the developer to discuss the project and best management practices. . The City would only serve as a conduit for the project financing. The City would not incur any financial liability as a result of the issuance of the debt, nor would the City incur any out of pocket expenses. BASIS OF RECOMMENDATION A. POLICY . Under the Minnesota Statutes, Chapter 462C and Chapter 47 4A the City of Richfield is authorized and empowered to issue multifamily housing revenue bonds. . The Borrower has submitted an Application For Tax Exempt Bond Financing to the City with respect to the proposed Refunding Bonds. . As a condition of the issuance of the revenue bonds, the City must adopt a Housing Program providing the information required by Minnesota Statutes Chapter 462C. . An application for an allocation of bonding authority to finance the project has been submitted to the Minnesota Department of Finance. I B. CroTICAL ISSUES I . The issuance of these bonds will not count against the City's annual allotment of Bank Qualified Debt. I C. FINANCIAL I . The amount of the bonds to be issued will be $15,445,000. . A combination of approximately $3.5 million of proceeds and equity is planned towards rehabilitation of the project. . The bonds will be issued in the City's name, but will not be a charge against the City's general credit or taxing powers. The City will act as a conduit for the financing of the project. It does not create any financial liability to the City. . The City is to be reimbursed and held harmless for and from any out-of-pocket expenses related to the tax exempt financing, including, but not limited to, legal fees, financial analystfees, bond counsel fees, staff costs, and any deposits or application fees required under state law in order to secure allocation of bonding authority. 050807Bonds Award of Sale . The applicant will be charged ,an annual administrative fee in the amount of 1/8th of1% (.125%) of the outstanding principal balance of the bonds. I D. LEGAL I . Kennedy & Graven will serve as bond counsel for the issue. . A public hearing is required as part of the issuance of private activity revenue bond financing and was held on April 24, 2007. I IV. ALTERNATIVE RECOMMENDATION(S) I . Forgo approving the attached resolution and not proceed with the issuance of the private activity revenue bonds. IV. ATTACHMENTS I . Resolution authorizing issuance of Multifamily Housing Development Revenue Bonds to Finance the Costs of the Development. I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . John Utley, Kennedy & Graven, Chartered . Representative from @ Home Apartments 050807Bonds Award of Sale ~-\ RESOLUTION NO. AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY. OF ITS VARIABLE RATE DEMAND MULTIFAMILY HOUSING REVENUE BONDS (LYNWOOD PARTNERS, LLC PROJECT), SERIES 2007, APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE BONDS AND RELATED DOCUMENTS; PROVIDING FOR THE SECURITY, RIGHTS, AND REMEDIES WITH RESPECT TO THE BONDS; AND GRANTING APPROVAL FOR CERTAIN OTHER ACTIONS WITH RESPECT THERETO WHEREAS, the City of Richfield, Minnesota (the "City"), is a home rule city and political subdivis.ion of the State of Minnesota; and WHEREAS, pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act") , the City is authorized to carry out the public purposes described in the Act by issuing revenue bonds to finance or refinance multifamily housing developments located within the City, and as a condition to the issuance of such revenue bonds, adopt a housing program providing the information required by Section 462C.03, subdivision 1 a, of the Act; and WHEREAS, in the issuance of the City's revenue bonds and in the making of a loan to finance a multifamily housing development the City may exercise, within its corporate limits, any of the powers that the Minnesota Housing Finance Agency may exercise under Minnesota Statutes, Chapter 462A, as amended, without limitation under the provisions of Minnesota Statutes, Chapter 475, as amended; and WHEREAS, Lynwood Partners, LLC, a Minnesota limited liability company (the "Borrower"), has requested that the City issue its revenue bonds under the Act and lend the proceeds thereof to the Borrower to finance the following: (i) the acquisition and renovation. of a 306-unit residential rental multifamily housing development, comprised of nine buildings located at 7437 Lyndale Avenue South in the City (the "Project"); and (ii) the payment of certain costs related to the issuance of the bonds; and WHEREAS, the Project is designed and intended to be used primarily for rental to and occupancy by persons and families of low and moderate income; and WHEREAS, the City has prepared a housing program (the "Housing Program" or "Program") to authorize the issuance by the City of revenue bonds in the principal amount of approximately $16,000,000 to refinance the acquisition, and renovation by the Borrower of the Project; and WHEREAS, the Housing Program was prepared and submitted to the Metropolitan Council for its review and on March 19, 2007, the City received correspondence from the Metropolitan Council acknowledging receipt of the Housing Program and providing its comments with respect to the Housing Program and the Project; and 050807Bonds Award of Sale ~-J.. WHEREAS, a notice of public hearing (the "Public Notice") was published in Richfield Sun Current, the official newspaper and a newspaper of general circulation in the City, with respect to: (i) the required public hearing under Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"); (ii) the required publiC hearing under Section 462C.04, subdivision 2, of the Act; (iii) the Housing Program; and (iv) approval of the issuance of the Bonds, as hereinafter defined; and WHEREAS, the Public Notice was published at least fifteen (15) days before the regularly-scheduled meeting of the City Council of the City and on April 24, 2007, the City Council conducted a public hearing at which a reasonable opportunity was provided for interested individuals to express their views, both orally and in writing, on (i) the Housing Program, (ii) the proposed issuance of the Bonds, in the approximate aggregate principal amount of $16,000,000, and (iii) the location and nature of the Project; and WHEREAS, pursuant to Resolution No. 9922, adopted on April 24, 2007, the City Council pf the City approved the Housing Program and provided preliminary approval for the sale and issuance of the Bonds, in the approximate aggregate principal amount of $16,000,000; and WHEREAS, the Borrower has requested that the City issue, sell, and deliver its Variable Rate Demand Multifamily Housing Revenue Bonds (Lynwood Partners, LLC Project), Series 2007 (the "Bonds"), in the original aggregate principal amount not to exceed $15,445,000; and WHEREAS, the proceeds derived from the sale of the Bonds will be loaned by the City to the Borrower pursuant to the terms of a Loan Agreement, dated on or after May 1, 2007 (the "Loan Agreement"), between the City and the Borrower, whereby the City will apply the proceeds derived from the sale of the Bonds to fund a loan to the Borrower; and WHEREAS, the Bonds will be issued pursuant to this resolution and an Indenture of Trust, dated on or after May 1,2007 (the "Indenture"), between the City and U.S. Bank National Association, a national banking association, as trustee (the "Trustee"), and the Bonds and the interest on the Bonds: (i) shall be payable solely from the . revenues pledged therefore under the Loan Agreement; (ii) shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation; (iii) shall not constitute nor give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers; (iv) shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the City other than the City's interest in the Loan Agreement; and (v) shall not constitute a general or moral obligation of the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RICHFIELD, MINNESOTA, AS FOLLOWS: 1. The City acknowledges, finds, determines, and declares that the issuance of the Bonds is authorized by the Act and is consistent with the purposes of the Act and that the issuance of the Bonds, and the other actions of the City under the Indenture, the Loan Agreement, and this resolution constitute a public purpose and are in the interests of the City. In authorizing the issuance of the Bonds for the financing of the 050807Bonds Award of Sale ~..2> Project and the related costs, the City's purpose is and the effect thereof will be to promote the public welfare of the City and its residents by providing multifamily ho~sing developments for low or moderate income residents of the City and otherwise furthering the purposes and policies of the Act. 2. For the purposes set forth above, there is hereby authorized the issuance, sale, and delivery of the Bonds in one or more series in the maximum aggregate principal amount not to exceed $15,445,000. The Bonds shall bear interest at the rates, shall be designated, shall be numbered, shall be dated, shall mature, shall be in the aggregate principal amount, shall be subject to redemption prior to maturity, shall be in such form, and shall have such other terms, details, and provisions as are prescribed in the Indenture, in the form now on file with the City, with the amendments referenced herein. The City hereby authorizes the Bonds to be issued, in whole or in part, as "tax- exempt bonds," the interest on which is not includable in gross income for federal and State of Minnesota income tax purposes. All of the provisions of the Bonds, when executed as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. The Bonds shall be substantially in the form in the Indenture on file with the City, which form is hereby approved, with such necessary and appropriate variations, omissions, and insertions (including changes to the aggregate principal amount of the Bonds, the stated 'maturities of the Bonds, the interest rates on the Bonds and the terms of redemption of the Bonds) as the Mayor and the City Manager, in their discretion, shall determine. The execution of the Bonds with the manual or facsimile signature of the Mayor and the City Manager and the delivery of the Bonds by the City shall be conclusive evidence of such determination. 3. The Bonds shall be special, limited obligations of the City payable solely from the revenues provided by the Borrower pursuant to the Loan Agreement and other funds pledged pursuant to the Indenture and from payments made pursuant to an Irrevocable Letter of Credit, dated on or after May 1, 2007 (the "Letter of Credit"), issued by LaSalle Bank National Association, a national banking association (the "Bank"), pursuant to the terms of a Reimbursement Agreement, dated on or after May 1 , 2007 (the "Reimbursement Agreement"), between the Borrower and the Bank. The City Council of the City hereby authorizes and directs the Mayor and the City Manager to execute the Indenture, and to deliver the Indenture to said Trustee, and hereby authorizes and directs the execution of the Bonds in accordance with the terms of the Indenture, and hereby provides that the Indenture shall provide the terms and conditions, covenants, rights, obligations, duties, and agreements of the owners of the Bonds, the City and the Trustee as set forth therein. All of the provisions of the Indenture, when executed as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. The Indenture shall be substantially in the form on file with the City, which is hereby approved, with such necessary and appropriate variations, omissions and insertions as do not materially change the substance thereof, and as the Mayor and the City Manager, in their discretion, shall determine, and the 050807Bonds Award of Sale ~-i- execution thereof by the Mayor and the City Manager shall be conclusive evidence of such determination. 4. The Mayor and the City Manager are hereby authorized and directed to execute and deliver the Loan Agreement and the. Bond Purchase Agreement, dated on or after May 1,2007 (the "Bond Purchase Agreement"), between Dougherty & Company LLC (the "Underwriter"), the City, and the Borrower. All of the provisions of the Loan Agreement and Bond Purchase Agreement, when executed and delivered as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. The Loan Agreement and Bond Purchase Agreement shall be substantially in the forms on file with the City which are hereby approved, with such omissions and insertions as do not materially change the substance thereof, and as the Mayor and the City Manager, in their discretion, shall determine, and the execution thereof by the Mayor and the City Manager shall be conclusive evidence of such determinations. 5. To ensure compliance with certain rental and occupancy restrictions imposed by the Act and Section 142(d) of the Internal Revenue Code of 1986, as amended (the "Code"), and to ensure compliance with certain restrictions imposed by the City, the Mayor and City Manager are also hereby authorized and directed to execute and deliver a Regulatory Agreement, dated on or after May 1,2007 (the "Regulatory Agreement"), between the City, the Borrower, and the Trustee. All of the provisions of the Regulatory Agreement, when executed and delivered as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. The Regulatory Agreement shall be substantially in the form on file with the City which is hereby approved, with such omissions and insertions as do not materially change the substance thereof, or as the Mayor and the City Manager, in their discretion, shall determine, and the execution thereof by the Mayor and the City Manager shall be conclusive evidence of such determination. 6. The Bonds shall be special, limited revenue obligations of the City, the proceeds of which shall be disbursed pursuant to the terms of the Indenture and the Loan Agreement, and the principal, premium, and interest on the Bonds shall be payable solely from the proceeds of the Bonds, the revenues derived from the Loan Agreement, and the other sources set forth in the Indenture. 7. The Trustee is hereby appointed as Paying Agent and Bond Registrar for the Bonds. 8. The Mayor and the City Manager are hereby authorized to execute and deliver, on behalf of the City, such other documents and certificates as are necessary or appropriate in connection with the issuance, sale, and delivery of the Bonds, including an Assignment of Mortgage, Security Agreement, Assionment of Leases and Rents and Fixture Filino, dated on or after May 1, 2007 (the "Assignment of Mortgage"), from the City to the Bank, various certificates of the City, an Information Return for Tax-Exempt Private Activity Bond Issues, Form 8038 with respect to the Bonds, a certificate as to arbitrage and rebate, and similar documents, and all oth~r documents and certificates as shall be necessary and appropriate in connection with the issuance, sale, and 050807Bonds Award of Sale . ,- 8/~ delivery of the Bonds. The City hereby approves the execution and delivery by the Trustee of the Indenture and all other instruments, certificates, and documents prepared in conjunction with the issuance of the Bonds that require execution by the Trustee. The City hereby authorizes Kennedy & Graven, Chartered, as bond counsel to prepare, execute, and deliver its approving legal opinions with respect to the Bonds. 9. The City has not participated in the preparation of the Official Statement relating to the offer and sale of the Bonds (the "Official Statement"), and has made no independent investigation with respect to the information contained therein, including the appendices thereto, and the City assumes no responsibility for the sufficiency, accuracy, or completeness of such information. Subject to the foregoing, the City hereby consents to the distribution and the use by the Underwriter of the Official Statement in connection with the offer and sale of the Bonds. The Official Statement is the sole material consented to by the City for use in connection with the offer and sale of the Bonds. 10. Except as otherwise provided in this resolution, all. rights, powers, and privileges conferred and duties and liabilities imposed upon the City or the City Council by the provisions of this resolution 6r of the aforementioned documents shall be exercised or performed by the City or by such members of the City Council, or such officers, board, body or agency thereof as may be required or authorized by law to exercise such powers and to perform such duties. No covenant, stipulation, obligation or agreement herein contained or contained in the aforementioned documents shall be deemed to be a covenant, stipulation, obligation or agreement of any member of the City Council of the City, or any officer, agent or employee of the City in that person's individual capacity, and neither the City Council of the City nor any officer or employee executing the Bonds shall be personally liable on the Bonds or be subject to any personal liability or accountability by reason of the issuance thereof. No provision, covenant or agreement contained in the aforementioned documents, the Bonds, or in any other document relating to the Bonds, and no obligation therein or herein imposed upon the City or the breach thereof, shall constitute or give rise to a general or moral obligation of the City or any pecuniary liability of the City or any charge upon its general credit or taxing powers. In making the agreements, provisions, covenants, and representations set forth in such documents, the City has not obligated itself to pay. or remit any funds or revenues, other than funds and revenues derived from the Loan Agreement which are to be applied to the payment of the Bonds, as provided therein. 11. Except as herein otherwise expressly provided, nothing in this resolution or in the aforementioned documents expressed or implied, is intended or shall be construed to confer upon any person or firm or corporation, other than the City, any holder of the Bonds issued under the provisions of this resolution, any right, remedy or claim, legal or equitable, under and by reason of this resolution or any provisions hereof, this resolution, the aforementioned documents, and all of their provisions being intended to be and being for the sole and exclusive benefit of the City, and any holder from time to time of the Bonds issued under the provisions of this resolution. 050807Bonds Award of Sale <6'L, 12. In case anyone or more of the provisions of this resolution, other than the provisions contained in the first sentence of Section 3 or in the first sentence of Section 6 hereof, or of the aforementioned documents, or of the Bonds issued hereunder shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other provision of this resolution, or of the aforementioned documents, or of the Bonds, but this resolution, the aforementioned documents, and the Bonds shall be construed and endorsed as if such illegal or invalid provisions had not been contained therein. 13. The Bonds, when executed and delivered, shall contain a recital that they are issued pursuant to the Act, and such recital shall be conclusive evidence of the validity of the Bonds and the regularity of the issuance thereof, and that all acts, conditions, and things required by the laws of the State of Minnesota relating to the adoption of this resolution, to the issuance of the Bonds, and to the execution of the aforementioned documents to happen, exist, and be performed precedent to the execution of the aforementioned documents have happened, exist, and have been performed as so required by law. . 14. The officers of the City, bond counsel, other attorneys, engineers, and other agents or employees of the City are hereby authorized to do all acts and things required of them by or in connection with this resolution, the aforementioned documents, and the Bonds, for the full, punctual, and complete performance qf all the terms, covenants, and agreements contained in the Bonds, the aforementioned documents, and this resolution. If for any reason the Mayor or the City Manager is unable to execute and deliver the documents referred to in this Resolution, such documents may be executed by any member of the City Council or any officer of the City delegated the duties of the Mayor or the City Manager with the same force and. effect as if such documents were executed and delivered by the Mayor or the City Manager. 15. The Borrower shall pay the administrative fee of the City on the date of issuance of the Bonds and on each anniversary of the date of issuance of the Bonds, in the amount of one-eighth of one percent (0.125%) of the outstanding principal amount of the Bonds as of each such payment date. The Borrower will also pay, or, upon demand, reimburse the City for payment of, any and all costs incurred by the City in connection with the Project and the issuance of the Bonds, whether or not the Bonds are issued, including any costs for attorneys' fees. 16. This Resolution shall be in full force and effect from and after its approval and publication. (The remainder of this page is intentionally left blank.) 050807Bonds Award of Sale 2>-1 Adopted by the City Council of the City of Richfield, Minnesota, on this 8th day of May, 2007. CITY OF RICHFIELD, MINNESOTA Debbie Goettel, Mayor Attest: Nancy Gibbs, City Clerk 050807Bonds Award of Sale AGENDA SECTION: AGENDA ITEM # REpORT # Resolutions 9 124 ....... STAFF REpORT RICHFIELD CITY COUNCIL MEETING MAY 8, 2007 REpORT PREPARED By: MELISSA POEHLMAN, PLANNING & ZONING ADMINISTRATOR NAME, TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of an amendment to an off-street parking permit at 7431-7521 LyndaleAvenue (Gateway Apartments) to allow the construction of QaraQes. 1. RECOMMENDED ACTION: By Motion: Approve the attached resolution for an amended off- street parking permit at 7431-7521 Lvndale Avenue. I II. BACKGROUND I In 1963 the Council granted both a special use permit (SUP) and an off-street parking permit (OSP) for the construction of nine apartment buildings at the above listed addresses. An off-street parking permit amendment that allowed the removal of five parking stalls to allow for the installation of a back-up fuel system was subsequently approved on October 23, 1995. At Home Apartments is currently in the process of purchasing the Gateway Apartment properties. Upon purchase they would like to install a row of garages behind the southern-most building (7521 Lyndale) and behind the northern-most building (7431 Lyndale). The construction of the 3 garages with a total of 47 stalls will result in a net loss of 7 parking spaces. At Home Apartments also plans to renovate the on-site rental office and improve the exterior of each apartment building. 050807 - OSP 7431-7521 Lyndale Ave I III. BASIS OF RECOMMENDATION I I A. POI,JCY I . City requirements call for 2 parking spaces per unit; however, the Council may reduce this requirement to not less than 1.25 spaces per unit if factors warrant reduction. o The proposal will provide 1.89 spaces per unit. o All units are one-bedroom units, therefore staff feels that the parking provided will continue to satisfy the needs of the property. . City landscape requirements call for parking areas to be landscaped using trees, shrubs, sod and groundcover plants. The hardscape currently in place in the parking lot islands will be removed and replaced by shade trees and groundcover. . . To ensure continued compliance with City standards the nine parcels that comprise this site must be maintained as a single site. A Declaration of Restrictive Covenants for the properties will be recorded with the County. This document will put future owners on notice that the parcels must be sold together in order to satisfy City ordinance requirements. I B. CRITICAL ISSUES . All City requirements are met. . The proposed changes will enhance the aesthetic appeal of the site and provide amenities for residents. . Because all of the units are one-bedroom units, the new property owners are hoping that the addition of the garages will help to diversify their product. I C. FINANCIAL . The required fee has been paid. I D. LEGAL I . The City Attorney will review and approve the declaration of restrictive covenants prior to its being filed with the County. I IV. ALTERNATIVE RECOMMENDATION(S) I . Deny the amended off-street parking permit. I V. ATTACHMENTS . Resolution . Site plan . Survey . DRAFT restrictive covenant . Zoning & land use maps I VI. PRINCIPAL PARTIES EXPECTED AT MEETING I . Andy Wilhoit and/or Alan Spaulding, At Home Apartments Of-I RESOLUTION NO. RESOLUTION GRANTING AN AMENDED OFF-STREET PARKING PERMIT AT 7431-7521 LYNDALE AVENUE SOUTH . WHEREAS, an application has been filed with the City of Richfield which requests approval of an amended off-street parking permit for the parcels of land located 7431-7521 Lyndale Avenue South, legally described on the attached Exhibit A; and WHEREAS, the requested amended off-street parking permit has been reviewed by staff and meets City requirements; and WHEREAS, the proposed parking area will adequately serve the purpose for which it is proposed and will not have an adverse effect upon the public safety or general welfare; and WHEREAS, the City has fully considered the request for approval for the amended off-street parking permit; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield, Minnesota, as follows: 1. That an amended off-street parking permit is hereby approved for a parking area as detailed in the approved site plan, which provides for 579 parking spaces. 2. Final landscape plans must be submitted to and approved by the Community Development Department prior to the issuance of any building permits. 3. A declaration of restrictive covenants must be submitted for approval by the City Attorney and recorded with Hennepin County prior to the issuance of any building permits. 4. All parking spaces must be accessible year round. 5. All landscaping must be installed bv Auqust 1. 2007 and from then on maintained and if necessary replaced in conformance with approved plans Adopted by the City Council of the City of Richfield, Minnesota this 8th day of May, 2007. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk q,.- d- Exhibit A All that part of the Northwest % of the Southwest % of Section 34, Township 28, West of the 4th Principal Meridian, described as follows: Beginning at a point in the West line of said Section 34, which is 330 feet South of the Northwest corner of the Southwest % of Section 34; thence East parallel with the North line of the S<;>uthwest % of Section 34, 1322.8 feet to the East line of the Northwest % of the Southwest ~ of Section 34; thence South along said East line 660 feet; thence West 1320.4 feet to a point in the West line of said Section 34, which is 660 feet South of the point of beginning; thence North to the point of beginning; except the South 4 feet of the North 334 feet of the Northwest % of the Southwest % of Section 34, Township 28, Range 24 and except the Easterly 493.68 feet thereof, according to the United States government survey thereof, Hennepin County, Minnesota. q-3 K] I ~(i s I~ ~ , st:" ~ r- 4: @J 2 I ~3 ~ 1 fi I 1 '~ ~ ~.dI~ S I 0- ~~r- I !It ~ ~ 2- .l" ~ ?ii - ~O (}\lO I dl S':t :~ ~ ; I .ili6~ , < ~ , ~~~~~~ J -. 1 ..... ... r: .,p fIf . 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MN ;n-t1. ;o-it.cn -!-S'f3 :nu.--- @ ,/ ~ " L ~ ., !:~eL8"l: ON ':loa i I r--~t J,N'31'13SV::! as~ ~ I. ~ . ~ 8 < . .~ " % o tgt7~!i. 'ON ~ua !:ad J,N3"",S'f3 s'tO ..q.3 tq ~ '" " '" - IX) ... <tl ...: W IX; , \' i \" ~ ~"E.. _ ." ~~ ~ ,. is o. , ;~~~ 8g:~ ~~~~ ~~~~ ~~~~ 00'999 ' . I I 1",1 '. . I __~ _ Hi nos ac'o" 3riN::JII V 37VGN';I.. 7 .<~..,. 3"~ 153M ---~----~------------l~ i---------~----~---~-------- . "~' I I ~ I-. : .. I t;j I I 'Il:: ' kf-:: Vllrl . 4,j . :s.: q~6 RESTRICTIVE COVENANT THIS RESTRICTIVE COVENANT is made the day of May, 2007 by Lynwood Partners, LLC, a Minnesota limited liability company (the "Owner"). RECITALS A. The Owner owns that certain real property legally described on Exhibit A attached hereto, improved with nine (9) separate apartment buildings, each having a separate tax parcel (the "Property"). The Owner desires to make certain improvements to the Property, including, but not limited to, the construction of forty-seven (47) garage stalls. B. The City of Richfield (the "City") approved the construction of forty-seven (47) garage stalls, but the City's approval of such improvements is conditioned upon the Owner's agreement that it will not sell less than all of the Property without the City's prior written consent in order to avoid possible parking issues should less than all of the Property be owned by the same person or entity. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Owner agrees as follows: 1. Restrictive Covenant. The Owner agrees that the Owner, and any future owner of the Property, shall not sell or convey less than all of the Property without the City's prior written consent. This restriction shall not prohibit the pledging of the Property as security for any financing related to the Property or from a lender's exercise of remedies against the Property or the Owner of the Property. 2. Successors and Assigns. This restrictive covenant shall be binding upon the Owner and its successors and/or assigns. IN WITNESS WHEREOF, Lynwood Partners, LLC has executed this Restrictive Covenant as of the day and year first above written. OWNER: L YNWOOD PARTNERS, LLC, a Minnesota limited liability company By Its 3205804vl 9999-14 -<P 7431-7521 Lyndale Avenue - asp Amendment Surrounding Zoning May 2007 I ~ ;III -. --- /" DP LXm I[ ~ RES/ COM COM CHURCH LX D LXD LXD LXD PLXD ::lLX )PLX IDol 'V '\ Rf/. PLX , 1.S COM 4:d ~ES RES RES [is ~ES C") COM RES RES RES APT RES RES COM RES PRK RES RES COM RES RES COM (f) RES COM Q) COM :::l c: RES Q) COM ~ COM RES RES RES RES RES RES ES ~ES COM Q) i\Es ro RES RES RES RES RES RES RES COM "0 c: COM R~ >. REs) ....J RES RES RES RES RES RES RES\ COM RES 1'\0 ~ COM RES RES RES RES RES P ~ 76th Street ~ RES RES RES APT --' I-- N A COM - Commercial RES - Single-Family Residential DPLX - Two-Family Residential APT - Multi-Family Residential PRK - Park o 95 190 380 . 570 760 Feet Richfield Community Development (MP) May 1, 2007 - - q-? 7431-7521 Lyndale Avenue - asp Amendment Surrounding Zoning May 2007 I ~ :a -.. /' ~ R-1 II ~ R) C-2 C-2 MR-2 MR-1 MR-1 MR-1 MR-1 MR-1 MR-1 MR-1 MR-1 ~1 P/ R-1 l~ -., J. C-2 , IR C-2 C-1 J~ R C-2 R R R C-2 R R C-2 R R R R C-2 R R C-2 (/) R C-2 <Ll C-2 ~ c R <Ll C-2 ~ C-2 R R R R R R R R <Ll ~ C-2 (ij R R R C-2 -0 R R R R c C-2 f\ .3- R R R R R RJ R R' C-2 R C-2 R R R R R / "- ~ 76th Street ~ R R R PC-2 f- f- o 95 190 - - 380 C-1 - Neighborhood Commercial C-2 - General Commercial R - Residential MR-1 - Two-Family Residential MR-2 - Multi-Family Residential MR-3 - High-Density Multi-Family Residential. 570 76~ t Richfield Community Development (MP) ee May 1,2007 N A AGENDA SECTION: AGENDA ITEM # REpORT # Resolutions 10 125 ........ STAFF REpORT RICHFIELD CITY COUNCIL MEETING MAY 8, 2007 REpORT PREPARED By: PAT SMITH, COMMUNITY DEVELOPMENT~NAGER NAME, TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY ~NAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of a resolution regarding a License Agreement between the City of Richfield, Kensington Park Retail (Cornerstone Group), and CSM Investors for shared parking at the municipalliauor store located at 7700 Lyndale Avenue. I. RECOMMENDED ACTION: By Motion: Consideration of attached resolution regarding a License Agreement between the City of Richfield, Kensington Park Retail, and CSM Investors for shared parking at the municipal liquor store located at-7700 Lvndale Avenue. I II. BACKGROUND I In December 2002 The Cornerstone Group (Cornerstone) received City Council approval for a Final Development Plan and Conditional Use Permit for a mixed-use development called, Kensington Park. A condition of approval required Cornerstone to provide 50 off-site parking spaces that would be used by the commercial tenant's employees. Cornerstone had an agreement with Century Court Apartment complex, a block north of Kensington Park for those parking spaces. 050807 License Agreement Cornerstone CSM Kensington Park is a mixed-use development that combines retail and housing. There is a surface parking lot for the commercial tenants. It includes 141 stalls for use by customers and employees of the commercial tenants. The Richfield Zoning Ordinance required 164 parking spaces or 23 more than are provided. Since it's opening, Kensington Park has been a success; especially the restaurant tenants which include Chiptole, Potbelly, Starbucks, and Noodles and Company. With the success has come an issue of parking. The commercial tenant's employees were parking in Kensington Park's parking lot. This caused problems with customer parking during the lunch hour and resulted in parking spilling into the neighborhood to the west along Aldrich Avenue. Cornerstone found that the tenants' employees did not want to park at the Century Court Apartment complex due to concerns about their personal safety, especially in the evening hours. As a remedy, Cornerstone has been working with a few businesses proximate to Kensington Park to which they may relocate the required 50 off-site parking spaces. Cornerstone has reportedly worked out a private agreement with the Hampton Inn for 25 parking spaces. They approached CSM Corporation, which owns the Shops at Lyndale to the south of Kensington Park, to determine parking space availability in the vicinity of the City's liquor store. The City uses portions of the CSM-owned property for parking and CSM uses portions ofthe City-owned liquor store site for parking due to an existing Utilities and Access Agreement. Up to 11 parking spaces are available for Cornerstone at this location. (See attached map.) Attached to this report is a proposed License Agreement (Agreement). The Agreement provides for the use of liquor store parking spaces by the liquor store, CSM and Cornerstone. The parking arrangement defined by the Agreement would be tested for 90 days. If the operation is successful, the City Council would be requested to extend the Agreement for a longer term. I III. BASIS OF RECOMMENDATION I I A. POLICY I . To offset the lack of 23 parking spaces and provide a "cushion", Cornerstone is required by the Planned Unit Development to have 50 off-site spaces for employee parking. I B. CRITICAL ISSUES I . In the Utilities and Access Agreement between the City and CSM, the City has the right to park in 11 parking spaces which are partially owned by CSM and partially owned by the City because of the location of the property lines; while CSM has the right to park in 14 spaces that are solely owned by the City and 2 spaces that are partially owned by CSM and the City. . Cornerstone has 25 spaces available at Hampton Inn. · The proposed Agreement would provide 11 non-exclusive spaces for Cornerstone at the liquor store from 8:00 a.m. to 4:00 p.m. daily and 10 parking spaces form 4:00 p.m. to 10:00 p.m. Monday - Friday. . Cornerstone will be short 14 parking spaces during the gO-day term of the Agreement. The need for the additional 14 parking spaces will be evaluated. If there is evidence of need, additional spaces will be identified elsewhere. If there is no evidence of need, an amendment to the Planned Unit Development Plan will be evaluated. . CSM will have non-exclusive use of 20 parking spaces. . The liquor store will have exclusive use of six parking spaces. . The liquor store manger has been part of these discussions and supports this Agreement. . If any real estate taxes become due and payable in 2008 and any subsequent years, Cornerstone will be required to pay those taxes due to their use of City property. . The Agreement is valid for gO days. . Any party can terminate the Agreement with three days notice. I C. FINANCIAL I . Cornerstone will be financially responsible for the appropriate proportion of the maintenance costs of the parking lot for the gO-day period, which equals $158. . The liquor store manager has opined that the Agreement will not have a negative impact on sales.. Evenings and Saturdays generate the highest customer counts. As noted above, the Agreement can be cancelled with three day's notice. I D. LEGAL I . Legal counsel has drafted the resolution and the Agreement. . Cornerstone, CSM Corporation, and City legal counsel have all reviewed and are comfortable with the License Agreement. I IV. ALTERNATIVE RECOMMENDATION(S) I . Approved the License Agreement with modifications. . Deny the License Agreement. I V. ATTACHMENTS . Resolution . License Agreement . Map I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . Representative from CSM Corporation . Representative from The Cornerstone Group I b-I RESOLUTION NO. CITY OF RICHFIELD, MINNESOTA RESOLUTION AUTHORIZING EXECUTION OF A NINETY-DAY LICENSE AGREEMENTALLOWING EMPLOYEES OF KENSINGTON PARK RETAIL, LLC, TO PARK IN MUNICIPAL LIQUOR STORE PARKING LOT. WHEREAS, the City currently owns and operates a municipal liquor store located at 7700 Lyndale Avenue South in the City of Richfield; and WHEREAS, Kensington Park Retail, LLC, a limited liability company registered in the State of Minnesota ("Kensington"), and CSM Investors, Inc., and CSM Shops, Inc., corporations registered in the State of Minnesota (collectively "CSM"), operate retail centers adjacent to the municipal liquor store; and WHEREAS, Kensington is in need of additional parking spaces for its employees; and WHEREAS, the City's municipal liquor store parking lot is subject to a Utilities and Access Agreement that provides CSM with non-exclusive use of sixteen parking spaces in the municipal liquor store parking lot; and WHEREAS, the City, CSM, and Kensington have collectively drafted a ninety-day agreement, subject to the approval of their respective governing bodies, that respects the City's Utilities and Access Agreement with CSM, provides designated parking spaces for municipal liquor store customers, and provides non-exclusive parking spaces for Kensington employees (the "Ninety-Day License Agreement"); and WHEREAS, the City, CSM, and Kensington have the right to terminate the Ninety-Day License Agreement at any time for any reason; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield, Minnesota as follows: 1. The Ninety-Day License Agreement is hereby approved and the Mayor and City Manager are authorized and directed to execute the Ninety-Day License Agreement on behalf of the City and to fully perform all of the City's obligations hereunder. Adopted this 8th day of May, 2007, by the City Council of the City of Richfield, Minnesota. CITY OF RICHFIELD, MINNESOTA Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk 10 r;). LICENSE AGREEMENT This LICENSE AGREEMENT (hereinafter referred to as "License Agreement") made and entered into as of this _ day of , 2007, by and between the CITY OF RICHFIELD, MINNESOTA, a Minnesota municipal corporation, (hereinafter referred to as the "City"), KENSINGTON PARK RETAIL, LLC, a limited liability company registered in the State of Minnesota (hereinafter referred to as "Kensington"), CSM INVESTORS, INC., a Minnesota corporation, and CSM SHOPS, INC., a Minnesota corporation (hereinafter collectively referred to as "CSM"). WITNESSETH: BACKGROUND The City currently owns a portion of the property that is the subject of this License Agreement. CSM Shops, Inc., also owns property that is adjacent to the City-owned property that is the subject to this License Agreement. Pursuant to a Utilities and Access Agreement (the "Easement") dated October 1, 1997, and recorded as Document No. 2851514, Office of the Registrar or Titles, and as Document No. 6795606, Office of the County Recorder, between the City and CSM Investors, Inc., the City currently uses the City's property and portions of the adjacent CSM-owned property as a parking lot for the customers and employees of its municipal liquor store. CSM uses its property and sixteen parking spaces on the adjacent City-owned property for parking for its tenants. Kensington owns a commercial retail center that is located near the City and CSM properties that has a need for additional employee parking. Kensington has requested that the City and CSM grant Kensington a license to use a portion of their properties for these purposes. This License Agreement will grant Kensington non-exclusive use of up to eleven (11) parking spaces on the City and CSM properties as provided in this License Agreement. ARTICLE I - GRANT, TERM 1.1 LICENSED PREMISES. The City owns a portion of the tract of land located at 7700 Lyndale Avenue South, Richfield, Minnesota, and located on land legally described and depicted in the attached Exhibit A-I & A-2 (hereinafter the "City Property"). CSM owns parcels of property adjacent to the City Property, and located on land legally described and depicted in the attached Exhibit B-1 & B-2 (hereinafter "CSM Property"). In consideration of the fees, covenants and agreements herein reserved and contained on the part of Kensington to be performed, the City and CSM Shops, Inc., do hereby grant, and CSM Investors, Inc., do hereby consent to said grant, a license to Kensington to use a portion of their respective properties as depicted and described on the attached Exhibit C-l and & C-2 (hereinafter the "Licensed Premises"). The Licensed Premises is subject to the Easement between the City and CSM which provides CSM with non-exclusive use of sixteen (16) parking spaces on the portion of the Licensed Premises owned by the City as depicted on the attached Exhibit D-l & D-2. The Easement between the City and CSM also provides the City with the non-exclusive use of portions of certain parking spaces on the portion of the Licensed Premises owned by CSM as described and depicted on the attached Exhibit E-l & E-2, respectively. This License Agreement permits Kensington non-exclusive use of up to eleven (11) parking spaces within the Licensed Premises under the conditions described in this License Agreement. lo-.) 1.2 TERM. The term of this License shall commence on , 2007 and shall expire upon ninety (90) days. This License is terminable at any time and for any reason by any of the parties, upon giving three (3) days notice to the other parties in writing. Upon termination, Kensington agrees to vacate the Licensed Premises and deliver the same to the City and CSM. ARTICLE II - USE OF LICENSED PREMISES 2.1 KENSINGTON'S NON-EXCLUSIVE USE. During the term of this License Agreement, the Licensed Premises may be used only for the purpose of the temporary parking of passenger motor vehicles for continuous periods of not more than eight (8) hours, as employee parking for the businesses operated on the real estate owned by Kensington, located in the City of Richfield, Minnesota, at 7610 Lyndale Ave South, 7630 Lyndale Avenue South, and 7640 Lyndale Avenue South, and legally described on the attached Exhibit F (hereinafter the "Kensington Property"). At the City or CSM's written direction, Kensington shall immediately remove from the Licensed Premises any vehicle, equipment or item that does not in the City or CSM's reasonable judgment comply with this purpose. The Licensed Premises shall be used by Kensington as follows: (a) Eleven (11) parking spaces shall be available for Kensington's use from 8:00 a.m. to 4:00 p.m. (seven days a week); and (b) Ten (10) parking spaces shall be available for Kensington's use from 4:00 p.m. to 10:00 p.m. each weekday (Monday through Friday). Upon three (3) days notice to Kensington, the City or CSM may further restrict or change the hours that the parking spaces are available for Kensington's non-exclusive use. 2.2 DESIGNATION OF KENSINGTON'S NON-EXCLUSIVE USE. During the term of this License Agreement, the Licensed Premises will not be designated for Kensington's use with posted signs. If the City or CSM determines there is a need for the Licensed Premises to be designated with posted signs, they shall provide Kensington with at least twenty (20) days notice of their intent to install the signs. Kensington shall be responsible for reimbursing the City or CSM for the cost of these signs and their installation, within thirty (30) days after receipt of an invoice from the City or CSM. Upon termination of this License Agreement, Kensington shall promptly remove these signs at no expense to the City or CSM unless otherwise provided for in a subsequent agreement. 2.3 DESIGNATION OF CITY'S EXCLUSIVE USE. During the term of this License Agreement, six (6) parking spaces on the City's Property on the Licensed Premises shall be for the City's exclusive use. These six (6) exclusive parking spaces are depicted on the attached Exhibit G. 2.4 DESIGNATION OF CSM'S NON-EXCLUSIVE USE. The terms of CSM's non- exclusive use of the Licensed Premises are substantially set forth in the Easement, , ,except as to four (4) of the six (6) parking spaces located on the City's portion of the Licensed Premises which are to be for the exclusive use of the City and depicted in Exhibit G of this License Agreement. Four of the six parking spaces which are depicted in Exhibit G as exclusive City parking spaces are located within the parking easement area over the City Property for the benefit of the CSM Property as described in Exhibit D-l and depicted in Exhibit D-2 of this License Agreement. For the term of this License Agreement, CSM shall be entitled to the non-exclusive use of the most southerly four (4) parking spaces lying within the City Property and along the East boundary of the City Property in addition to the twelve (12) parking spaces located within the easement area described in Exhibit [0 ~i D-1 which have not been designated as City exclusive parking spaces. If CSM determines there is a need for some parking spaces on the Licensed Premises to be designated with posted signs for CSM's exclusive use, it shall provide the City and Kensington with at least twenty (20) days notice of its request. The City shall install the signs and CSM shall be responsible for reimbursing the City for the cost of these signs and their installation, within thirty (30) days after receipt of an invoice from the City. Upon termination of this License Agreement, CSM shall promptly remove these signs at no expense to the City unless otherwise provided for in a subsequent agreement. ARTICLE III - TAXES 3.1. TAXES. During the term of this Agreement, Kensington shall be responsible for paying, when due, all real estate taxes or personal property taxes, if any, that may become due and payable in 2008 and subsequent years and attributable to Kensington's use of City Property subject to this License Agreement, even if the taxes are payable after the termination of this License Agreement. Kensington is aware that its use of City Property subject to this License Agreement in one calendar year may result in taxes payable in a following. calendar year. The parties agree that the City Property subject to this License Agreement is tax exempt in 2007. ARTICLE IV - MAINTENANCE FEE 4.1 MAINTENANCE FEE. In consideration of this Agreement, the Grantee agrees to pay a maintenance fee. This maintenance fee is intended to reimburse the Grantor for an equitable portion of the Grantor's maintenance and repair costs for the parking lot, including the costs incurred by the Grantor for snow removal, salt applications, blacktop striping, and blacktop seal coating, as well as the Grantor's costs in administering this License Agreement. This fee shall be $ for the duration of this Agreement. ARTICLE V - TERMINATION 5.1 TERMINATION. CSM, the City, or Kensington may terminate this License Agreement at any time and for any reason upon three (3) days notice to the other parties pursuant to the provisions of Article VIII of this License Agreement. ARTICLE VI - PUBLIC LIABILITY, INDEMNITY 6.1 KENSINGTON'S LIABILITY INSURANCE. Kensington shall during the entire term hereof keep in full force and effect a policy of liability and property damage insurance with respect to the Licensed Premises, in which the limits of liability shall be the same as the policy limits which Kensington currently carries on Kensington Property. 6.2 INDEMNIFICATION. Except for claims arising out of the willful or negligent act of the other party or its representatives, each party shall indemnify, defend and hold harmless the other parties against all claims, expenses and liabilities incurred, including reasonable attorneys' fees, in connection with loss of life, personal injury, or property damage arising out of any occurrence in, upon or at the Licensed Premises, or the occupancy or use thereof by said party, or occasioned wholly or in part by any act or omission of said party, its officers, agents, employees, invitees and contractors. This provision shall not be deemed as a waiver of any statutory or common law liability limits available to the City. Jo .,-$ ARTICLE VII - ASSIGNMENT AND SUBLICENSING 7.1 NO ASSIGNMENT BY KENSINGTON. Kensington shall not assign this License Agreement and/or sublicense the Licensed Premises, or any part thereof, without the prior written consent of the City and CSM. ARTICLE VIII -KENSINGTON'S DEFAULT 8.1 EVENTS OF DEFAULT. The following events shall be deemed to be events of default by Kensington under this License Agreement: (a) Kensington fails to pay when due any payments or other charges provided herein, or any portion thereof and the same shall remain unpaid for a period of ten (10) days after the same has become due; or (b) Kensington shall do or permit to be done anything which creates a lien of record upon the Licensed Premises; and does not cause said lien to be released within ten (10) days after written notice from the City or CSM; or (c) Kensington has failed to comply with any other provision of this License Agreement after the City or CSM, by written notice, have informed Kensington of such non-compliance. 8.2 CITY AND CSM'S REMEDIES. Upon the occurrence of any of the above events of default, the City or CSM may, without providing a notice of termination, immediately notify Kensington of such default and may, with such notice, retake possession of the Licensed Premises. 8.3 COSTS, EXPENSES AND ATTORNEYS' FEES. If a party is required to seek legal counsel for collection or to commence or defend litigation in order to enforce or enjoy this License, the party prevailing in such collection, litigation shall have the right to reimbursement from the other parties of all reasonable costs, expenses, and attorneys' fees. ARTICLE IX - MISCELLANEOUS PROVISIONS 9.1 SURRENDER OF LICENSED PREMISES. At the termination of this License Agreement, Kensington shall surrender the Licensed Premises in an "as is" condition. 9.2 NO DAMAGES, NO RELOCATION BENEFITS. Kensington understands and acknowledges that the City and CSM are willing to enter into this License Agreement and carry out their obligations hereunder only because Kensington has agreed that it will make no claim for damages upon termination of this License Agreement. Specifically, and without limitation of the foregoing, Kensington understands that upon the termination of this License Agreement, the City and CSM have no obligation to provide Kensington with other parking, to compensate it for the value of lost parking, to compensate it for the impact of the lost parking on the value of Kensington Property or any business conducted thereon, or on the income or profitability of such business, to acquire the business or any part thereof, or to payor offer relocation benefits or relocation assistance. (o-{,o 9.3 NO PROPERTY INTEREST. This instrument is not a lease, creates no landlord- tenant relationship, and nothing in this License Agreement shall be deemed to create any property interest other than as expressed in this License Agreement. 9.4 GOVERNING LAW. The laws of the State of Minnesota, without regard to choice of law provisions, will govern the validity and interpretation of this License Agreement. 9.5 NOTICES. Any notice which is required under this License Agreement shall be deemed "given" upon (a) hand delivery; (b) three (3) days after prepaid posting in the U.S. Mail; (c) or (iii) sent by facsimile (with verification of receipt), whichever shall first occur. All notices shall be addressed to the following representatives of the parties: City of Richfield City Manager City of Richfield 6700 Portland Avenue Richfield, MN 55423-2560 Telephone: 612.861.9700 Facsimile: 612.861.9749 Colleen Carey The Cornerstone Group Kensington Park Retail, LLC 7300 Metro Boulevard #585 Edina, MN 55439 Telephone: 952.942.6900 Facsimile: 952.942.6902 General Counsel 500 Washington Avenue South, Suite 3000 Minneapolis, MN 55415 Telephone: 612.395.7000 Facsimile: 612.395.7002 Kensington Park Retail, LLC CSM Investors, Inc. & CSM Shops, Inc. In the event that any party to this License Agreement gives notice by facsimile, as set forth above, such party agrees to deposit the original notice in a post office, branch post office, or mail depository maintained by the U.S. Postal Service, postage prepaid and addressed as set forth above. Such deposit in the U.S. Mail shall not affect the deemed delivery ofthe notice by facsimile. 9.6 LIMITED TERM AGREEMENT. The parties acknowledge that this Agreement is a limited term agreement between CSM, Kensington, and the City. In the event the parties enter into parking-related agreements with the City in the future, the City expressly reserves the right to require that Kensington reimburse the City for future parking-related signage costs. (The rest of this page was intentionally left blank.) /0-7 IN WITNESS WHEREOF, the parties hereto have affixed their signatures to this License Agreement the day and year first above written. THE CITY OF RICHFIELD By: Debbie Goettel Its: Mayor By: Steven L. Devich Its: City Manager STATE OF MINNESOTA } 88.: COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this _ day of , 2007, by Debbie Goettel and Steven L. Devich, the Mayor and City Manager, respectively, of the City of Richfield, a Minnesota public corporation, on behalf of the corporation. Notary Public 10 -)] KENSINGTON PARK RETAIL, LLC By: Colleen M. Carey Its: Chief Manager STATE OF MINNESOTA } SS.: COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this _ day of ,2007, by Colleen M. Carey, the Chief Manager of Kensington Park Retail, LLC, a limited liability company under the laws of the State of Minnesota, on behalf of the limited liability corporation. Notary Public lo--or CSM INVESTORS, INC. By: Its: STATE OF MINNESOTA } sS.: COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this _ day of , 2007, by , the of CSM Investors, Inc., a corporation under the laws of the State of Minnesota, on behalf of the corporation. Notary Public CSM SHOPS, INC. By: Its: STATE OF MINNESOTA } SS.: COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this _ day of , 2007, by , the of CSM Shops, Inc., a corporation under the laws of the. State of Minnesota, on behalf of the corporation. Notary Public 10-10 EXHIBIT A-I Lee:al Description of the Citv Propertv As platted and recorded with the County of Hennepin, Minnesota: Lots 1,2,3,4 and 5, Block 1, STRAND'S SECOND ADDITION TO RICHFIELD, and That part of vacated West 77 ~ Street dedicated in STRAND'S SECOND ADDITION TO RICHFIELD, described as beginning at the southwest comer of Lot 5, Block 1, said plat; thence easterly along the South line of said Lot 5, a distance of 75.65 feet to an angle point in said South line; thence northeasterly, along said South line, a distance of 62.72 feet to the East line of said Lot 5; thence southerly, along the southerly extension of said East line, a distance of 59.71 feet to the North line of the South 30 feet of said West 77 Yz Street; thence westerly, along said North line, a distance of 130.87 feet to the southerly extension of the East line of Lot 6, said Block 1; thence northerly, along said southerly extension, a distance of 30 feet to the point of beginning. (depicted on Exhibit A-2) /D-I/ EXHIBIT A-2 10 - f L- EXHIBIT B-1 Lee:al Description of CSM Propertv CSM INVESTORS, INC., is the record fee owner of the following two (2) parcels ofland: PARCEL 1: That part of the East Half of the Southeast Quarter of the Southwest Quarter of the Southeast Quarter of Section 33, Township 28, Range 24, lying northerly of that part thereof taken for highway purposes per Final Certificate filed as Document No. 3431114, Office of County Recorder; and That part of the West 320 feet of the South Half of the Southeast Quarter of the Southeast Quarter of Section 33, Township 28, Range 24, lying northerly of that part thereof taken for highway purposes per Final Certificate filed as Document No. 3417875, Office of County Recorder; and That part of vacated Colfax Avenue South, as dedicated in the plat of STRAND-BOWEN SECOND ADDITION, which lies between the Westerly extensions of the South line of Block 2 and the North line of Block 1, all in said plat of STRAND-BOWEN SECOND ADDITION; and The West 11.28 feet of Lot 11, Block 1, STRAND-BOWEN SECOND ADDITION, and the North 48.0 feet ofthe West 11.28 feet of Lot 11, Block 2, STRAND-BOWEN SECOND ADDITION; and That part of vacated West 77-112 Street, as dedicated in the plat of STRAND-BOWEN SECOND ADDITION, which lies Westerly of a line drawn Southerly from the Southeast comer of the West 11.28 feet of said Lot 11, Block 1, to the Northeast comer of the West 11.28 feet of said Lot 11, Block 2, STRAND-BOWEN SECOND ADDITION; and That part of the following-described properties: "The South 85 feet of the West Half of the East Half of the Northeast Quarter of the Southwest Quarter of the Southeast Quarter of Section 33, 'Township 28, Range 24; and Lot 8, NORTHFELT ADDITION, Hennepin County, Minnesota; and vacated or un-vacated 77th Street West, as dedicated in the plat of NORTHFELT ADDITION, Hennepin County, Minnesota," described as follows: Commencing at the Southeast comer of the Northeast Quarter of the Southwest Quarter of the Southeast Quarter of said Section 33; thence South 89 degrees 41 minutes 41 seconds West, assumed bearing, along the South line of said Northeast Quarter of Southwest Quarter of Southeast Quarter a distance of 86.58 feet to the point of beginning of the parcel to be described; thence Northwesterly a distance of 187.04 feet along a non- tangential curve concave to the Northeast having a radius of 610.33 feet, and a central angle of 17 degrees 33 minutes 32 seconds, the chord of said curve bears North 63 degrees 29 minutes 13 seconds West; thence South 38 degrees 06 minutes 35 seconds West, not tangent to said curve, a distance of 32.47 feet; thence Southerly along a tangential curve concave to the East having a radius of 120.00 feet to the South line of said Northeast Quarter of the Southwest Quarter of Southeast Quarter; thence North 89 degrees 41 minutes 41 seconds East along said South line to the point of beginning; Parcel 2: Lot 8, except the Easterly 4.5 feet thereof, Block 1, STRAND-BOWEN SECOND ADDITION; Lot 11, except the West 11.28 feet thereof, Block 1, STRAND-BOWEN SECOND ADDITION; Lots 9 and 10, Block 1, STRAND-BOWEN SECOND ADDITION; The North 48 feet of Lots 8, 9, 10, and 11, except the Easterly 4.5 feet of said Lot 8, and except the West 11.28 feet of said Lot 11, all in Block 2, STRAND-BOWEN SECOND ADDITION; 10 --( 3 AND that part of vacated West 77-1/2 Street, as dedicated in the plat of STRAND-BOWEN SECOND ADDITION, which lies westerly of the Southerly extension of the West line of the East 4.5 feet of Lot 8, Block 1, STRAND-BOWEN SECOND ADDITION, to the centerline thereof, and the Northerly extension of the West line of the East 4.5 feet of Lot 8, Block 2, STRAND-BOWEN SECOND ADDITION, to the centerline thereof; and lying Easterly of a line drawn Southerly from the Southeast comer of the West 11.28 feet of said Lot 11, Block 1, to the Northeast comer of the West 11.28 feet of said Lot 11, Block 2, STRAND-BOWEN SECOND ADDITION. * * * * * * * * * * CSM SHOPS, INC., is the record fee owner of the following-described land: Lots 6 through 11 inclusive, Block 1, STRAND'S SECOND ADDITION TO RICHFIELD; Lots 1 through 5 inclusive, Block 2, STRAND'S SECOND ADDITION TO RICHFIELD; That part of vacated Aldrich Avenue South as dedicated in the plat of STRAND'S SECOND ADDITION TO RICHFIELD which lies between the Westerly extensions of the North line of Market Drive and the North line of Block 1 in said plat; The South 30 feet of vacated West 77-1/2 Street, as dedicated in the plat of STRAND'S SECOND ADDITION TO RICHFIELD, adjoining the North line of Block 2 in said plat and its Easterly extension, together with that part of said vacated West 77-1/2 Street, lying North of said South 30 feet, which lies Westerly of the Southerly extension of the East line of Lot 6, Block I, in said plat; Lots 1 through 11 inclusive, Block 1, and Lots 1 through 11, Block 2, all in STRAND-BOWEN ADDITION TO RICHFIELD; All of vacated West 77-1/2 Street as dedicated in the plat of STRAND-BOWEN ADDITION TO RICHFIELD; Lots 1 through 7 inclusive, and the Easterly 4.5 feet of Lot 8, all in Block 1, STRAND-BOWEN SECOND ADDITION; Lots 1 through 11 inclusive, except the North 48 feet of Lots 9, 10, and 11 and that part of Lot 8 lying Westerly of the Easterly 4.5 feet of said Lot 8, all in Block 2, STRAND-BOWEN SECOND ADDITION; and That part of vacated West 77-1/2 Street, as dedicated in the plat of STRAND-BOWEN SECOND ADDITION, which lies Easterly of the Southerly extension of the West line of the East 4.5 feet of Lot 8, Block 1, to the centerline thereof, and the Northerly extension of the West line of the East 4.5 feet of Lot 8, Block 2, to said centerline, all in STRAND BOWEN SECOND ADDITION. (depicted on Exhibit B-2) :i! m ~~(Jl dB Pl;& ~ ~ }> ~~-1 . - !:;( i'lz ~ hi ~~ fA ~ :::: g: Ii ~ ~ ~~i ih- it: rll 10-- (9- EXHIBIT B-2 Deviction of CSM Property <"'l (Jl :;;: H z <: rn (Jl -i o '" U> - z ;> ! \. 1\ ....ll"". ~ i \ ~ ! \ j ~ t \ 1 i \ i..\ ; III .. ;: ~ \ \ i: ! \ l; @. II ~ ! ~ I$lOOIiH ~ ~ ~ IOOW_ ~ f#1tlfHltItttOO -- IltttIHOOI ~!i -- I . I I I m g- >< U> ;:; '" co -c -i -s 0 "0 co (I) I -s N ... '<I -:- I , , , j \ \ ! ~ 1Wtmf1tH~ ~ IAAItDtHtlffiH mnt1tH$ ~~ -- ~HfH -~ ~ ~ n u._"',~,,, 10 - (; EXHIBIT C-l Lee:al Description of Licensed Premises LICENSED PREMISES ON CITY PROPERTY: Parking spaces as located or to be located on the following-described parcel of land: Lots 1,2, 3, 4 ~nd 5, Block 1, STRAND'S SECOND ADDITION TO RICHFIELD, and That part of vacated West 77 ~ Street dedicated in STRAND'S SECOND ADDITION TO RICHFIELD, described as beginning at the southwest comer of Lot 5, Block 1, said plat; thence easterly along the South line of said Lot 5, a distance of 75.65 feet to an angle point in said South line; thence northeasterly, along said South line, a distance of 62.72 feet to the East line of said Lot 5; thence southerly, along the southerly extension of said East line, a distance of 59.71 feet to the North line of the South 30 feet of said West 77 ~ Street; thence westerly, along said North line, a distance of 130.87 feet to the southerly extension ofthe East line of Lot 6, said Block 1; thence northerly, along said southerly extension, a distance of 30 feet to the point of beginning. Except as to the 6 exclusive parking spaces as marked on Exhibit G of this License Agreement. LICENSED AREA ON CSM SHOPS, INC. PROPERTY: Commencing at the northeast comer of Lot 6, Block 1, STRAND'S SECOND ADDITION TO RICHFIELD, according to the recorded plat thereof, Hennepin County, Minnesota; thence South 00 degrees 04 minutes 18 seconds East, assumed bearing, 132.00 feet, along the East line of said Lot 6 to the point of beginning of the licensed area to be described; thence continuing South 00 degrees 04 minutes 18 seconds East 68.00 feet to Point "A"; thence South 89 degrees 54 minutes 42 seconds West 8.00 feet; thence North 00 degrees 04 minutes 18 seconds West 68.00 feet; thence North 89 degrees 54 minutes 42 seconds East 8.00 feet to the point of beginning; Also, commencing at the above-referenced Point "A"; thence North 89 degrees 54 minutes 42 seconds East 35.19 feet along a north line of the CSM Parcel to the point of beginning of the licensed area to be described; thence continuing North 89 degrees 54 minutes 42 seconds East 36.00 feet to Point "B"; thence South 00 degrees 00 minutes 00 seconds East 5.50 feet; thence South 89 degrees 54 minutes 42 seconds West 36.00 feet; thence North 00 degrees 00 minutes 00 seconds West 5.50 feet to the point of beginning; Also, commencing at the above-referenced Point "B"; thence North 89 degrees 54 minutes 42 seconds East 47.72 feet along a north line of the CSM Parcel to the point of beginning of the licensed area to be described; thence continuing North 89 degrees 54 minutes 42 seconds East 11.75 feet; thence southerly 22.58 feet on a non-tangential curve to the left with a radius of 458.70 feet and with a central angle 'of 02 degrees 49 minutes 14 seconds and with a chord bearing of South 12 degrees 54 minutes 51 seconds West and a chord length of 22.58 feet; thence South 89 degrees 54 minutes 42 seconds West 6.68 feet not tangent to said curve; thence North 00 degrees 04 minutes 18 seconds West 22.00 feet to the point of beginning. (Depicted on Exhibit C-2) 10 - ((P EXHIBIT C-2 Sketch deuictine: Licensed Premises . lo~ll EXHIBIT D-l Le!!al Descriotion of Parkin!! Easement over Citv Prooertv for the Benefit of CSM An easement for parking and access purposes over and across that part of Lot 5 of Block 1, Strand's Second Addition to Richfield, and that part of vacated West 77 Y2 Street, as dedicated in said plat of STRAND'D SECOND ADDITION TO RICHFIELD, as platted and recorded, Hennepin County, Minnesota, described as follows: COIIUl'IIlI1l:ing at the northeast comer of Lot 1. Blade 1; of said S'lltAND'S SECOND ADDITION TO lUCHFlELD; tItence South 00 degrees OS .cninute$ 31 sa;oods But. assumed balins. 200.00 teet .lIong the eat line of said Lot 1 and it., southerly projection; thence South 89 degrees 54 minutes 42 seconds West 33.94 fi=ct to the point of beginning ofthc parkins and ac:ccss casc:mc:ut to be descn'bed; thence continuing South 89 dcll'ecs 54 minutes 42 sc:c;oods West 86.69 feet; tbcocc North 00 degrees 00 uUrwtes 00 seconds f:.ast 66.47 fc:ct;thcn" Nonh 90 degrees 00 minutes 00 seconds East 86.69 feet; thence South 00 degrees 00 minutes 00 seconds We$t 66.33 feet to the point ot'bcginDing. (depicted on Exhibit D-2) 10- l~ EXHIBIT D-2 8 ~'t' ,.;sg''l4 ._"--'. &' .45 ~...-- ,,- - P-SUR - <18~- 'T --...-:----------~:::--------I\_. N09*26':S9 , -,', ,.; yr' ~ 62.72- ,,- " I I 'tI. ",-, -, ' 1 \\ ~,-- ,-' tOO - ----- r--- --- -- -- -- ---f. ~y ,,' .. I I /'; I ,,' I/f ) - :1~~ /: I I I ~ I 'I <il - - _..J 4 I I\J.~ 'I'i III ~~ J! ;It ,/ 'I . " , I ..). S61018'02"W I _.....-}' /'" 3.16 I /,p'" )>. I J'I I" I < [IJ -----W1NE-ANO---- SPIRITS LIQUOR . STORE 3 1--------------- \ 4 r -< Z o )> r (T) "" ...., ...., ',:::-" ...:::........ N89-54' 4 22.91 (Note: The parking counts depicted above do not equal parking counts "as built.") fO-fer EXHIBIT E-l Parkin!! Easements Over the CSM Property for the Benefit of the City An easemcm for parking purposes over and &CrOSS the CSM Parcel for the benefit of the City Parcel, said easement being desQjbed as follows: Commencing at a northeast comer.ofthe CSM Pa.n:eI. said point also beiDg the northeast comer ofLot-6. Btocll; l. StRAND"S SECOND ADDmON TO RICHFIELD. as platted and recorded, Hennepin County. Minnesota; thcncc South 00 degrees 04 minutes 18 sccond:J East. assumed bearing. 132.00 feet alOllg the <:<1st line oftbc CSM Parcel, said line also being the east line or said .Lot 6 to the point of beginning of the parking CBlICtncnt to be described; thcoc:e continuing South 00 degrees 04 minute. 18 aeconds East 68.00 feet t Point "A"; thence South 89 desrees 54 minutes 42 seconds West 8.00 fi:et; thence Nortb 00 degrees 04 minutes 18 seconds West 68.00 feet; thence North 89 dcgrce3 54 minutes 4Z ,cc:onds East 8.00 feet to th~ point ofbeginoing. -. ALSO: An euement tor parking purposes over aad ac;ross the CSM Parcel for the benefit ufthe Cily Parcel. said casement being de&:ribed as follows: Commencing at the aboVc refi:renc:ed Point"A"; thence North 89 de8f:eOS S4 minutes 42 SCIOOnds East 35.19 feet along a north line of tbe CSM Parcel to the point ofbeginniDg of the parking casmaent to be deucribed; thence c:ootinuin,g Nortb 89 cfesrees 54 minutes 42 seconds East 36.00 feet to Point "8"; thence South 00 degrees 00 minutes 00 seconds East 5.50 teet; ~ South 19 degrees S4 minutes 42 seconds West 36.00 feet; thence Nol1h 00 degrees 00 minutes 00 seconds WC3t 5.50 feet to the point of beginning. ALSO: An easement tor pacldng purposes over and across the CSM Parcel for the benefit of the City Parc:ej. said easement being described as foJlows: Commencing at the above referenced Point"B..; thence: Noeth 89 degrees 54 minutes 42 SClCOIlds East 47.72 feet aloDS a north line of the C8M Parcel to the point ofbcginning of the parkins euement to be der.cn'bed: . thence continuing North 89 dcgrccs 54 lJIinutes 42 seconds &It 11.75 feet; thence southerly 22.58 feet on a . IlOntaogentiaJ elUVc to the left with a radius of 4S8.70 teet aad with a c:cntral aJJSlc of 02 degce:J 49 minute~ 14 seconds and with a chord bearing of South 12 dearees S4 minuta S 1 sccoads West and a chord length of 22058 feet; thence South 89 degr=s S4 minutes 42 seconds West 6.68 feet not tangent to said curve; thence North 00 degrees 04 minutes 18 llCCOnds West 22.00 &et to the point ofbeginning. (depicted on Exhibit E-2) , 0- ~O EXHIBIT E-2 8 ttS%' '\ \' ~s" 'Ii __--;J &' .45 -- , ---- _...,... /---' --- -- - - .,.;- - - - - - - - - -'1\0. " NOg-2.6."39"W 1, ,~ ,..-?, 62,71. t \\ /'" i' 100 - ----- !).... / !,/t/ r-- ,)' I ., (/1 I -< '". -: II Z II' ~ 0 Jl: ~ J> II- I' ~~ r != ~I g~ fI1 -tl f~ I/j :.r, S61-1S'02"W ,"'''''''~' / 3.16 , ,'" )> Ii': < I I fT1 I Zl 01 .JB (f) o :::. ...rmn.... C _~ --f ....... I I I J ...,.:'.... ~" ..' ..., N89-S4'42"E 22.91 (Note: The parking counts depicted above do not equal parking counts "as built.") I 0 - ;LI EXHIBIT F Lee:al Description of Kensine:ton Property [Kensington to Provide] ['0 -d-d- EXHIBIT G Sketch Deoictim! Location of City's Six (6) Exclusive Customer Parkin!! So aces . . !f) -- ~3 License Agreement Legend ~ CSM Corporation Non-Exclusive Parking Spaces ~ Kensington Park Retail Non-Exclusive Parking Spaces D City Liquor Store Exclusive Parking Spaces (16+4 ) (7+2+2) (4+2) N A AGENDA SECTION: Other Business AGENDA ITEM # 11 REpORT # 126 STAFF REpORT RIEHlFIEEIY CITY COUNCIL MEETING MAY 8, 2007 REpORT PREPARED By: RANDY HUGHES OPERATIONS SUPERINTENDENT NAME, TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: B REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of selecting a design option for the proposed Maintenance Facility and authorize the acceptance of bids oertaininQ to the option selected. I. RECOMMENDED ACTION: By Motion: If the City Council selects Option 3, approve and reject bids as recommended by Short Elliott Hendrickson (SEH) on the attached report in the total amount of $6,895,530. If the City Council selects Option 2, approve and reject bids for Option 2 in the amount of $6,592,905. . I II. BACKGROUND I At the December 12, 2006 Council Meeting, SEH presented cost estimates for Option 2 and Option 3 for the proposed maintenance facility. . Option 2was an 86,305 sq. ft. multi-level building which would house all of the City's equipment, use geothermal heat and provide space for outdoor storage bins. The estimated total cost for Option 2 was $12.2 million. . Option 3 was a 95,655 sq. ft. multi-level building which would incorporate all of the features of Option 2 plus provide enough indoor storage space to eliminate 0508maintenancefacility the outdoor storage area at Taft Park. Estimated total cost for Option 3 was $12.94 million. The Council authorized SEH to proceed with bid specifications for the two options. On April 26, 2007, bids were opened for 26 bid packages. The attached report and tabulations are the results of those bids plus the bid for precast concrete, which was opened on March 26,2007. The report also contains the Construction Manager's recommendations for acceptance and rejection of certain bids. If the City Council wants to build Option 3 that includes a basement under half of the building, the attached cost estimate indicates Option 3 can be built within the December 12, 2006, $12.94'million budget. Based on the bids received to date, the new budget of $12,908,493 contains $600,000 for contingencies that may arise during construction. I III. BASIS OF RECOMMENDATION I I A. POLICY I . The ad for bids was published in the Sun Current on March 29, 2007. . The ad for bids was published in the Construction Bulletin on March 26, 2007 and April 2, 2007. . Bid openings were held on April 26,2007. I B. CRITICAL ISSUES I . Option 3 bids are within estimates presented to the Council on December 12, 2006. . Option 3 frees up parkland at Taft Park. . Award of these contracts is critical to allow vendors to order material and schedule work in a timely manner. . Rejected contracts will be rebid and recommendations submitted at the June 12, 2007 Council Meeting. The April 26 bid packages, which are not being awarded at the May 8, 2007 meeting, will be awarded at the May 22, 2007 except for the furnishings package which will be bid later this year. I C. FINANCIAL I . Funding is available for either Option 2 or Option 3 of the project based on bids received to date. I D. LEGAL I . The property is now registered to the City of Richfield . All contracts or purchases in excess of $25,000 require Council approval. . . All contracts or purchases over $50,000 require sealed bids to be solicited by public notice. I IV. ALTERNATIVE RECOMMENDATION(S) I . Council could reject all bids and stop the project. I V; ATTACHMENTS I . Project budget from the December 12, 2006 City Council Meeting. . May 1, 2007 memo to the City Council from Nancy Schultz, SEH. Bid minutes from the March 8 and April 26, 2007 bid opening. I VI. PRINCIPAL PARTIES EXPECTED AT MEETING I . Staff from SEH and Gundlach Champion 1-1--1 c ~ en r- 0 ~Q OJ CD C m n g-<" C n Q. cr m .. CD ~ 0 !2: So Co .... C CD JJ 3 0 0" -- () Ci) 0 D) CD 0-. CC 0" .... Ci) -0 lil g. CD ::J ::J ::J m ::J .. CD (') 0 CD CD CD -+ - (') ~ - Q. I\) o _0 ... .. """'I """'I < ::J 0 s. _CD ~ CD CD CD CD 0 - " ~ g.O: c: 'T1 0) 0) """'I '::T 0 CD I I\) CD """'I D) ~ -0 "tJ -c '""I CJ) CJ) 0) 0 CD C ~ CD CD 0. - tIJ """'I CJ) '< ac: Q. 0 0 3 0" .. _. 0- 0.0. ~ .. ~ CD _ 3 """'I tIJ -0 D) 9. cr m .. Ci)m 0) ~ ::J s:>> n " III :E ... CD X CJ) < ~ a 0 CD ... " o (') CD .. ";j' -0) 3 0 0 c~ .... .. '::T< _. ~ CIJ CD 0 "C CD _. CD a CD !:!':. 2- CD "T1 0 CD """'I ::J 3 Pl ~ C 3 cr - 0 0-0 2- CD s:>> ::J ::J m :~ CD m tIJ tIJ .!'J r- 0 UJ !:!':. I\) "tJ (I) !:!':. 3 0 :JJ 0 3 3 D) O'l 0 D) S' c.. C" .. m CD CD 0 '""I .... ~ OJ N C .... C N G) m 0 .... 0 ~ 0) 0 0 :JJ -. ... ~ '< ~ 0 m 0 m C .... ::s 0 0 -. ... - ... s: . 00 (J1 0 CD .. ... ..."C 0 ... 0 .. CD -. '" '" 0 ... -(If W -En- co -. ... (J1 w ""'-I ::J ::s 1\). N co N I\) c.a . '" p '" N N 0 N (J1 Q) 0 Q) w 0 w 0 ... N . N 0 00 0) ... ..."C .... N ...!:!':. 0 '" '" 0 0 N -En- Q) ::J 0) W Q) ... co W N W W '" P '" . 0 0 co 0 A A 0 A (J1 0 (II . . . I/-bl May 1, 2007 To: Richfield City Council From: Nancy Schultz, AlA Short Elliott Hendrickson Re: New Maintenance Facility Bid Recommendations for Approval Summary During the past several months the City of Richfield staff, Short Elliott Hendrickson and Gundlach Champions Inc. have worked together to establish project budgets and alternate options for your new maintenance facility, with our goal to keep the total project costs within a $12.94 million. After approval of designs by the City of Richfield, documents were completed and notifications were sent out in late March requesting bids for all construction trades. Bids were received for all trade categories on April 26, 2007. A summary spreadsheet of the apparent low bids is attached for reference. Gundlach Champion Inc. evaluated the bids and met with several of the apparent low bidders through May 1, 2007 to confirm complete bids. The following are our comments and recommendations on those bids. The Total Project Budget, based on the bids and evaluations through May 1, 2007, currently equates to $12,908,493. More of the apparent low bids still need to be reviewed for completeness, however based on what we know to date we are confident that this amount will not go up but, rather, drop slightly if four of the trade contracts are rebid. As shown on the attached documents this total cost includes design, construction, and owner set-up / furnishings. Alternates were also received as possible deducts should the City decide cost savings measures are needed. Those four possible deduct alternates are also included on the attached sheets. Based on the bids received and evaluations completed to date, SEH recommends the City of Richfield approve a total project cost of$12,908,500, without alternates. In addition, we recommend that contracts be approved for the following bid categories: Concrete, Precast, Masonry, Steel, Aluminum/Glass, Hydraulic Elevator, Overhead Crane, Fire Protection, HV AC, Electrical, and SiteworklUtilities (see gray highlighted on spread sheet). Rebidding is being recommended for Roofing, Gypsum Board Systems, Ceramic Tile, and Plumbing, due to insufficient bids or discrepancies called out on the attached summary sheets. All other bid categories will be reviewed and recommended for the next Council Meeting. With Council approval, SEH and GCI will proceed with trade contracts and stali-up of the construction phase ofthe project. Short Eltiott Hendrickson Inc., Butler Square Building, Suite 710C, 100 North 6th Street, Hinneapoiis, !"I!'>! 55403.. is;:; SEH is an equal opportunity employer I www.sehinc.com I 612.758.6700 I '866.830.3388 I 612.758.670! fax . . . Richfield City Council May 1, 2007 Page 2 {{r-3 SEH and GCl wish to thank the City of Richfield for allowing us to assist you in building a long-needed new Maintenance Facility and await your authorization to proceed with the next phase. lfthere are any questions on the information addressed, please contact myself or Bryan Pischel of GCl at your convenience. Very truly yours, SHORT ELLIOTT HENDRICKSON @iu Attachments: Project Budget Summary Bid Summary Spreadsheet Gundlach Champion Inc. ~L:~ ~el Regional Manager Il,--Lf . City of Richfield New Maintenance Facility Estimate I Bids Breakdown: 5.1.01 Description Building Cost w/ Sitework (BIDS) $11,003,493 Construction Contingency $ 600 ,000 Sub Total Construction $11,603,493 ** pending 4 category rebids Site Acquisition $ 100,000 . Furnishings and Equipment $ 250,000 Voice/Data/Cabling in bids Professional Fees $ 825,000 Reimbursables $ 130,000 TOTAL PROJECT BUDGET $12,908,493** pending 4 category rebids Allernates: Decrease lower level Area ($309,925) Delete Material Storage Bins ($ 228,050) Delete Skylights at Roof ($199,814) Delete Generator ($ 67,300) TOTAL WITH AL TERNA TES $12,103,404 . www.~irst.com GUNDLACH CHAMPION l\itofJc;ther r)iffurc~!-~t . - ftII :II o .. = = c .. o - .J '= = CD E E o u CD 1:11: '= iii I'- o o t:! .... in I - Q ca ... u -Ii! -cain u== =u= -=..~ Q== iiiii=ll: 'SlEo: i'1= .- .. u =z= lli: W o o iii "C Gl III "C '~ iii lli: III C "C :8 iii l\l .... l.l III <;:: o .i: 0.. l\l 13 o I I ~ ~ V> V> V> 000<00 0001'-0 ~100"<t1'-1'- o~~_-~sf~ "C~<c-C")COC'\l iii tf.t EA- tf.t tf7 (f7 c ~ ';: l.l III Gl o ~ ~ooo o 8 ~ 8 l\l C'? C'? "<t 0..000 "C iii III Q) Iii (/) 6 5 .~ 8 g>~ ~-! ~E.e-=- 000 000 I'- 0 I/) NMO o '" I'- N I/) '" '" '" u ___ ...... 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"'I ::2i U), WI, m 2:$\2 '-I Q)', Q) i, Q) I, ~ mll"Q)] (i)1 C[OIO!Oi i : I ~ 'I""""!NiMI","! 21' 2! 21 21 ~ ~I ~! ~i ml (Pi wi ml ~1~i~!~1 N ,- o N Q) '" '" 0.. //~ 7 CITY OF RICHFIELD, MINNESOTA Bid Opening March 8, 2007 2:00 p.m. Precast Concrete City Bid No. 07-04 Pursuant to requirements of Resolution NO.1 015, a meeting of the Administrative Staff was called by Deborah Guiher, Deputy City Clerk, who announced that the purpose of the meeting was to receive, open and read aloud, bids for precast concrete, as advertised in the official newspaper on February 22, 2007. Present: Deborah Guiher, Deputy City Clerk Cheryl Krumholz, City Manager Representative Randy Hughes, Operations Superintendent The following bids were submitted and read aloud: Contractor Bid Base Bid Alt. #1 Alt. #2 -Mati Security Lower Level Storage Bldg Hanson Structural Pre-cast Inc. Received $1,557,000 $166,000 $161,000 Gage Bros. Concrete Products, Inc. Not $1,710,955 $102,232 $199,245 Received Wells Concrete Products Received $1,656,770 $184,170 $175,426 The Deputy City Clerk announced that the bids would be tabulated and considered at the May 8, 2007 City Council Meeting. Deborah Guiher Deputy City Clerk //-.-( CITY OF RICHFIELD, MINNESOTA Bid Opening April 26, 2007 2:00 p.m. Maintenance Facility - Concrete Bid No. 07-08 Bid Package 03 00 00 Pursuant to requirements of Resolution NO.1 015, a meeting of the Administrative Staff was called by Nancy Gibbs City Clerk, who announced that the purpose of the meeting was to receive, open and read aloud, bids for Maintenance Facility-Concrete, as advertised in the official newspaper on March 29, 2007, and the Construction Bulletin on March 26,2007 and April 2, 2007. Present: Nancy Gibbs City Clerk Cheryl Krumholz, City Manager Representative Randy Hughes, Operations Superintendent The following bids were submitted and read aloud: Contractor Rec Add Base Bid Bid Alt Bid #1 Alt Bid #2 #1,#2,#3,#4 Security Lower Level Mati Stor Bldg (Deduct) (Deduct) Stellar Concrete & Masonry ttI $1,286,000 Received $119,000 $25,900 Axel H. Ohman, Inc. ttI $1,999,000 Received $22,000 $24,000 Gresser Companies Inc. ttI $1,048,700 Received $28,600 $27,400 Northland Concrete & ttI $1,039,500 Received $88,600 $27,500 Masonry Co. Northland Concrete & Masonry Co. ttI $1,384,840 Received $88,600 $27,500 (Combined Bid) The City Clerk announced that the bids would be tabulated and considered at the May 8, 2007 City Council Meeting. Nancy Gibbs City Clerk /1~1 CITY OF RICHFIELD, MINNESOTA Bid Opening April 26, 2007 2:00 p.m. Maintenance Facility - Masonry Bid No. 07-09 Bid Package 04 00 00 Pursuant to requirements of Resolution NO.1 015, a meeting of the Administrative Staff was called by Nancy Gibbs City Clerk, who announced that the purpose of the meeting was to receive, open and read aloud, bids for Maintenance Facility-Masonry, as advertised in the official newspaper on March 29, 2007, and the Construction Bulletin on March 26,2007 and April 2, 2007. Present: Nancy Gibbs City Clerk Cheryl Krumholz, City Manager Representative Randy Hughes, Operations Superintendent The following bids were submitted and read aloud: Contractor Rec Add Base Bid Bid Security #1,#2,#3,#4 Donald R. Frantz Concrete Inc. ~ $356,750 Received T.C.R. Enterprises dba J&K Masonry ~ $379,603 Received Hines & Sons Inc. ~ $353,400 Received Axel H. Ohman, Inc. ~ $375,000 Received Grasser Companies Inc. ~ $432,000 Received Northland Concrete & Masonry Co. ~ $359,330 Received The City Clerk announced that the bids would be tabulated and considered at the May 8, 2007 City Council Meeting. Nancy Gibbs City Clerk //-/0 CITY OF RICHFIELD, MINNESOTA Bid Opening April 26, 2007 2:00 p.m. Maintenance Facility - Structural Steel and Miscellaneous Steel Bid No. 07-10 Bid Package 05 00 00 Pursuant to requirements of Resolution NO.1 015, a meeting of the Administrative Staff was called by Nancy Gibbs City Clerk, who announced that the purpose of the meeting was to receive, open and read aloud, bids for Maintenance Facility-Structural Steel and Miscellaneous Steel, as advertised in the official newspaper on March 29, 2007, and the Construction Bulletin on March 26,2007 and April 2,2007. Present: Nancy Gibbs City Clerk Cheryl Krumholz, City Manager Representative Randy Hughes, Operations Superintendent The following bids were submitted and read aloud: Contractor Rec Add #1 ,#2,#3,#4 Base Bid Bid Security Alt Bid #1 Lower Level (Deduct) Alt Bid #2 Mati Star Bldg (Deduct) Alt Bid #3 Transl Panel (Add/Deduct) Thurnbeck Steel Fabrication Inc. ~ $892,778 Received $9,100 $11,800 -$19,900 Nimsgern Steel Corp. ~ $990,620 Received $7,200 $14,800 -$19,000 The City Clerk announced that the bids would be tabulated and considered at the May 8, 2007 City Council Meeting. City Clerk Nancy Gibbs / j-- // CITY OF RICHFIELD, MINNESOTA Bid Opening April 26, 2007 2:00 p.m. Maintenance Facility - Aluminum Entrances and Windows and Glazing Bid No. 07-14 Bid Package 08 40 00 Pursuant to requirements of Resolution No.1 015, a meeting of the Administrative Staff was called by Nancy Gibbs City Clerk, who announced that the purpose of the meeting was to receive, open and read aloud, bids for Maintenance Facility-Aluminum Entrances and Windows and Glazing, as advertised in the official newspaper on March 29,2007, and the Construction Bulletin on March 26,2007 and April 2,2007. Present: Nancy Gibbs City Clerk Cheryl Krumholz, City.Manager Representative Randy Hughes, Operations Superintendent The following bids were submitted and read aloud: Contractor Rec Add #1,#2,#3,#4 Base Bid Bid Security Alt Bid #3 Transl Panel (Add/Deduct) ltI $344,720 / Received -$167,859 The City Clerk announced that the bids would be tabulated and considered at the May 8, 2007 City Council Meeting. Nancy Gibbs City Clerk J J- /;< CITY OF RICHFIELD, MINNESOTA Bid Opening April 26, 2007 2:00 p.m. Maintenance Facility - Hydraulic Elevator Bid No. 07-23 Bid Package 14 20 00 Pursuant to requirements of Resolution No.1 015, a meeting of the Administrative Staff was called by Nancy Gibbs City Clerk, who announced that the purpose of the meeting was to receive, open and read aloud, bids for Maintenance Facility - Hydraulic Elevator, as advertised in the official newspaper on March 29,2007, and the Construction Bulletin on March 26, 2007 and April 2, 2007. Present: Nancy Gibbs City Clerk Cheryl Krumholz, City Manager Representative Randy Hughes, Operations Superintendent The following bids were submitted and read aloud: Contractor Rec Add Base Bid Bid Security #1 ,#2,#3,#4 Proposal Schindler Elevator Corp. None $57,867 None Minnesota Elevator Inc. ~ $82,689 Received The City Clerk announced that the bids would be tabulated and considered at the May 8, 2007 City Council Meeting. Nancy Gibbs City Clerk 11- / j CITY OF RICHFIELD, MINNESOTA Bid Opening April 26, 2007 2:00 p.m. Maintenance Facility - Overhead Crane Bid No. 07-26 Bid Package 146000 Pursuant to requirements of Resolution NO.1 015, a meeting of the Administrative Staff was called by Nancy Gibbs City Clerk, who announced that the purpose of the meeting was to receive, open and read aloud, bids for Maintenance Facility -Overhead Crane, as advertised in the official newspaper on March 29, 2007, and the Construction Bulletin on March 26, 2007 and April 2,2007. Present: Nancy Gibbs City Clerk Cheryl Krumholz, City Manager Representative Randy Hughes, Operations Superintendent The following bids were submitted and read aloud: Contractor Rec Add Base Bid Bid Security #1,#2,#3,#4 Superior Crane Corp. ItI $45,000 Cashiers Ck The City Clerk announced that the bids would be tabulated and considered at the May 8, 2007 City Council Meeting. Nancy Gibbs City Clerk /1- /1 CITY OF RICHFIELD, MINNESOTA Bid Opening April 26, 2007 2:00 p.m. Maintenance Facility - Fire Protection Bid No. 07-27 Bid Package 21 00 00 Pursuant to requirements of Resolution No.1 015, a meeting of the Administrative Staff was called by Nancy Gibbs City Clerk, who announced that the purpose of the meeting was to receive, open and read aloud, bids for Maintenance Facility-Fire Protection, as advertised in the official newspaper on March 29, 2007, and the Construction Bulletin on March 26, 2007 and April 2,2007. Present: Nancy Gibbs City Clerk Cheryl Krumholz, City Manager Representative Randy Hughes, Operations Superintendent The following bids were submitted and read aloud: Contractor Rec Add #1,#2,#3,#4 Base Bid Bid Security Alt Bid #1 Lower Level (Deduct) Brothers Fire ItI $148,900 Received $8,900 Summit Fire Protection ItI $152,400 Received $8,900 The City Clerk announced that the bids would be tabulated and considered at the May 8, 2007 City Council Meeting. City Clerk Nancy Gibbs /' /J- Is CITY OF RICHFIELD, MINNESOTA Bid Opening April 26, 2007 2:00 p.m. Maintenance Facility - HVAC Bid No. 07-29 Bid Package 23 00 00 Pursuant to requirements of Resolution NO.1 015, a meeting of the Administrative Staff was called by Nancy Gibbs City Clerk, who announced that the purpose of the meeting was to receive, open and read aloud, bids for Maintenance Facility-HVAC, as advertised in the official newspaper on March 29,2007, and the Construction Bulletin on March 26,2007 and April 2, 2007. Present: Nancy Gibbs City Clerk Cheryl Krumholz, City Manager Representative Randy Hughes, Operations Superintendent The following bids were submitted and read aloud: Contractor Rec Add Base Bid #1,#2,#3,#4 Bid Security Alt Bid #1 Lower Level (Deduct) NAC Corporation ~ $1,224,000 Received $1,400 Master Mechanical Inc. ~ $1,169,000 Received $8,000 Kumar Mechanical Inc. ~ $1,211,000 Received None The City Clerk announced that the bids would be tabulated and considered at the May 8, 2007 City Council Meeting. Nancy Gibbs City Clerk ) /- /~ CITY OF RICHFIELD, MINNESOTA Bid Opening April 26, 2007 2:00 p.m. Maintenance Facility - Electrical Bid No. 07-30 Bid Package 26 00 00 Pursuant to requirements of Resolution No.1 015, a meeting of the Administrative Staff was called by Nancy Gibbs City Clerk, who announced that the purpose of the meeting was to receive, open and read aloud, bids for Maintenance Facility-Electrical, as advertised in the official newspaper on March 29, 2007, and the Construction Bulletin on March 26, 2007 and April 2, 2007. Present: Nancy Gibbs City Clerk Cheryl Krumholz, City Manager Representative Randy Hughes, Operations Superintendent The following bids were submitted and read aloud: Contractor Rec Add Base Bid Bid Alt Bid #1 Alt Bid #2 Alt Bid #4 #1 ,#2,#3,#4 Security Lower Level Mati Stor Bldg. Generator (Deduct) (Deduct) (Deduct) Gephart Electrical Co. ~ $948,400 Received $10,000 $9,000 $83,900 Inc. Phasor Electric Co. ~ $1,114,000 Received $5,000 $3,500 $108,000 Bloomington Electric ~ $1,133,000 Received $10,000 $1,000 $60,000 .Co. Electric Resource ~ $782,530 Received $6,900 $2,800 $102,000 Contractors C & SElectric ~ $898,000 Received $8,100 $4,750 $67,300 The City Clerk announced that the bids would be tabulated and considered at the May 8, 2007 City Council Meeting. Nancy Gibbs City Clerk /1- /7 CITY OF RICHFIELD, MINNESOTA Bid Opening April 26, 2007 2:00 p.m. Maintenance Facility - Sitework and Utilities Bid No. 07-31 Bid Package 31 00 00 Pursuant to requirements of Resolution No.1 015, a meeting of the Administrative Staff was called by Nancy Gibbs City Clerk, who announced that the purpose of the meeting was to receive, open and read aloud, bids for Maintenance Facility-Sitework and Utilities, as advertised in the official newspaper on March 29,2007, and the Construction Bulletin on March 26, 2007 and April 2, 2007. Present: Nancy Gibbs City Clerk Cheryl Krumholz, City Manager Representative Randy Hughes, Operations Superintendent The following bids were submitted and read aloud: Contractor Rec Add Base Bid Bid Alt Bid #1 Alt Bid #2 #1,#2,#3,#4 Secu rity Lower Level Mati Stor Bldg. (Deduct) (Deduct) Max Steininger Inc. III $568,900 Received $7,000 $11,000 Imperial Developers Inc. III $447,422 Received $28,000 $3,400 Northern Asphalt Inc. III $541,475 Received $19,500 None Veit III $554,793 Received $21,249 $3,168 Carl Bolander & Sons Inc. III $522,853 Received $19,856 $5,840 Ramsey Excavating Co. III $397,425 Received $13,925 $3,500 K .A. Kamish Excavation III $684,300 Received $27,500 $1,500 The City Clerk announced that the bids would be tabulated and considered at the May 8, . 2007 City Council Meeting. Nancy Gibbs City Clerk