072412completeagenda CITY OF RICHFIELD, MINNESOTA
TUESDAY, JULY 24, 2012
REGULAR CITY COUNCIL MEETING
RICHFIELD MUNICIPAL CENTER
6700 PORTLAND AVENUE
COUNCIL CHAMBERS
7:00 P.M.
AGENDA
INTRODUCTORY PROCEEDINGS
Call to order
Roll call
Open forum (15 minutes maximum)
Each speaker is to keep their comment period to three minutes to allow sufficient time for
others. Comments are to be an opportunity to address the Council on items not on the agenda.
Individuals who wish to address the Council must have registered prior to the meeting.
Notes:
Pledge of Allegiance
Approval of minutes of(1) Special City Council Worksession of July 10, 2012; and (2)
Regular City Council Meeting of July 10, 2012
COUNCIL DISCUSSION
1. Council discussion
• Hats Off to Hometown Hits
Notes:
AGENDA APPROVAL,
2. Council approval of agenda
CONSENT CALENDAR
3. Consent Calendar contains several separate items,which are acted upon by the City
Council in one motion. Once the Consent Calendar has been approved,the individual
items and recommended actions have also been approved. No further Council action on
these items is necessary. However, any Council Member may request that an item be
removed from the Consent Calendar and placed on the regular agenda for Council
discussion and action. All items listed on the Consent Calendar are recommended for
approval.
A. Consideration of approval of Post-Issuance Debt Compliance Policy and updated
Fund Balance Policy S.R. No. 127
B. Consideration of approval of resolution authorizing prepayment and redemption of
$750,000 Taxable G.O. Improvement Bonds, Series 1997, dated December 1, 1997
S.R. No. 128
C. Consideration of approval of resolution authorizing refunding of$3,470,000 G.O.
Tax Increment Bonds, Series 2003C, dated December 30, 2003 with $2,560,000
Taxable G.O. Tax Increment Refunding Bonds, Series 2012B S.R. No. 129
D. Consideration of approval of resolution authorizing submittal of grant application to
Minnesota Department of Employment and Economic Development for pedestrian
access improvements in Lakes at Lyndale area S.R. No. 130
E. Consideration of approval of award of contract to Metro Elevator, Inc. for repairs to
existing elevator at Richfield Community Center as required by State Code in
amount of$35,335 S.R. No. 131
F. Consideration of approval of award of contract to Midwest Elevator and Drilling for
installation of air conditioning unit to existing elevator at Richfield Community
Center as required by State Code in amount of$15,317 S.R. No. 132
Notes:
4. Consideration of item(s), if any, removed from Consent Calendar
Notes:
PROPOSED ORDINANCE
5. Consideration of:
• Second reading of ordinance amending Subsection 429.05 of Richfield City Code
related to Minnehaha Creek Watershed District Stormwater Management Rule; and
• Resolution authorizing summary publication of ordinance amendment Section 429
Staff Report No. 133
Notes:
RESOLUTIONS,
6. Disciplinary hearing regarding resolutions imposing civil enforcement on establishments
in Richfield that underwent alcohol compliance checks conducted by Richfield Public
Safety and failed by selling alcohol to underage youth
Staff Report No. 134
Notes:
OTHER BUSINESS
CITY MANAGER'S REPORT
7. City Manager's Report
Notes:
8. Claims and payrolls
Open forum (additional 15 minutes if more time needed after first Open Forum and by
majority vote of the City Council)
Each speaker is to keep their comment period to three minutes to allow sufficient time for
others. Comments are to be an opportunity to address the Council on items not on the agenda.
Individuals who wish to address the Council must have registered prior to the meeting.
Notes:
9. 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.
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CITY COUNCIL MINUTES
Richfield, Minnesota
#geqeeeld Special City Council Worksession
July 10, 2012
CALL TO ORDER
The meeting was called to order by Mayor Goettel at 6:15 p.m. in the Bartholomew
Conference Room.
ROLL CALL
Council Members Debbie Goettel, Mayor; Tom Fitzhenry; Pat Elliott; Fred Wroge; and Sue
Present: Sandahl
Staff Present: Steven L. Devich, City Manager; Mike Eastling, Public Works Director; Jim
Topitzhofer, Recreation Services Director; Jeff Pearson, Transportation
Engineer; and Cheryl Krumholz, Executive Coordinator
Item #1 DISCUSSION REGARDING RENAMING OF 76T"/77T" STREET(COUNCIL
MEMO NO. 79)
Transportation Engineer Pearson discussed the information collected in 2009, possible
resolutions to previously identified issues, and policy direction to staff on how to proceed.
Transportation Engineer Pearson presented the options of keeping the official street name
and add a "nickname", "nicknames" at only major intersections, and alternate street name because
"Centennial" is too connected with Edina. He also reviewed some issues with the "nickname" option.
The City Council was not supportive of the "nickname" option.
Council Member Sandahl expressed strong support for renaming with an airport associated
link, not Edina because it may encourage the underpass. She added that her discussions with Tim
Carter, Richfield-Bloomington Honda, indicate support because the area is a regional draw.
At the invitation of Council Member Sandahl, Larry Couture, ECOsmarte, 1600 East 78th
Street, presented his views on the renaming of 77th Street, east of Portland Avenue, including support
for consideration of Airport Parkway or MSP Airport Plaza.
Mayor Goettel expressed support of renaming because it may help businesses.
Council Member Fitzhenry suggested citizen-input on renaming the street. He said the
renaming will give a clearer name for travel destinations.
Special Worksession Minutes -2- June 26, 2012
Council Member Wroge stated he did not support an Airport Parkway through Richfield. He
also did not support the renaming because there is already a street grid system and there is enough
traffic getting off 1-494 to cut through Richfield.
Council Member Elliott said he agreed with renaming but no further west than Nicollet to
develop a commercial district identity. He did not endorse renaming all the way across the City.
The City Council consensus was to not use the nickname option but rather an alternate street
name and direct staff to develop a process to obtain citizen input and marketing impacts and return to
the City Council with alternatives to gather options.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 6:50 p.m.
Date Approved: July 24, 2012
Debbie Goettel
Mayor
Cheryl Krumholz Steven L. Devich
Executive Coordinator City Manager
CITY COUNCIL MEETING MINUTES
ee
d Richfield, Minnesota
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Regular Meeting
July 10, 2012
CALL TO ORDER
The meeting was called to order by Mayor Goettel at 7:00 p.m.
ROLL CALL
Members Present: Debbie Goettel, Mayor; Tom Fitzhenry; Pat Elliott, Sue Sandahl; and Fred
Wroge.
Staff Present: Steven L. Devich, City Manager; Mike Eastling, Public Works Director;
John Stark, Community Development Director; Jim Topitzhofer, Recreation
Services Director; Todd Sandell, Acting Public Safety Director; Chris
Regis, Finance Manager; Jeff Pearson, Transportation Engineer; Corrine
Heine, City Attorney; and Cheryl Krumholz, Executive Coordinator.
OPEN FORUM
None.
PLEDGE OF ALLEGIANCE
Mayor Goettel led the audience in the Pledge of Allegiance.
APPROVAL OF MINUTES
M/Fitzhenry, S/Wroge to approve the minutes of(1) Regular City Council Meeting of June
12, 2012; (2) Special City Council Worksession of June 26, 2012; and (3) Regular City Council
Meeting of June 26, 2012.
Motion carried 5-0.
Item#1 ANNUAL MEETING WITH ARTS COMMISSION
Judy Goebel and Debra Caseroti, Arts Commission Co-Chairs, provided a report on the
Commission's activities and goals.
Council Meeting Minutes -2- July 10,2012
Item #2 COUNCIL DISCUSSION
• HATS OFF TO HOMETOWN HITS
Recreation Services Director Topitzhofer provided an update on the All Veterans Memorial.
The City Council expressed their thanks to Police, Fire, and Public Works staff for their
work at the July 4 celebration.
Council Member Wroge suggested the housing policy discussion be held sooner rather
than later with the City Council and invite the HRA and Planning Commission to attend.
Mayor Goettel stated this discussion should include housing for the entire community and
be on a date when all members of the City Council can be present.
Community Development Director Stark suggested a facilitator be considered to assist with
discussion.
Item #3 COUNCIL APPROVAL OF AGENDA
M/Fitzhenry, S/Wroge to approve the agenda.
Motion carried 5-0.
Item #4 CONSENT CALENDAR
A. Consideration of approval of canceling public hearing on July 10, 2012 regarding
preliminary and final plat approval for land located at 7641 Pleasant Avenue (former Public
Works Garage property and former Gleason Mortuary at 211 West 76th Street); Pillsbury
Commons S.R. No. 116
B. Consideration of approval of first reading of ordinance amendment related to Minnehaha
Creek Watershed District's Stormwater Management Rule and scheduling second reading
for July 24, 2012 S.R. No. 117
C. Consideration of approval of renewal of commercial lease with MnDOT for use of excess
land along 1-494 adjacent to Best Buy Campus for continued use as parking lot and transit
station S.R. No. 118
D. Consideration of approval of resolution providing for sale of$2,150,000 General Obligation
Street Reconstruction Bonds, Series 2012A S.R. No. 119
RESOLUTION NO.10664
RESOLUTION PROVIDING FOR THE SALE OF $2,150,000 GENERAL OBLIGATION
STREET RECONSTRUCTION BONDS, SERIES 2012A
This resolution appears as Resolution No. 10664.
E. Consideration of approval of resolutions pertaining to annual Lyndale/HUB/Nicollet (LHN)
maintenance assessment process and scheduling public hearing for August 13, 2012 S.R.
No. 120
Council Meeting Minutes -3- July 10,2012
RESOLUTION NO.10665
RESOLUTION DECLARING COST TO BE ASSESSED
AND ORDERING PREPARATION OF PROPOSED ASSESSMENT
FOR LYNDALE/HUB/NICOLLET (LHN) MAINTENANCE
FOR THE PERIOD JANUARY 1, 2011 THROUGH DECEMBER 31, 2011
This resolution appears as Resolution No. 10665.
RESOLUTION NO.10666
RESOLUTION PROPOSING TO SPECIALLY ASSESS
FOR THE COSTS OF CURRENT SERVICES PROVIDED
WITHIN THE LYNDALE/HUB/NICOLLET (LHN) PROJECT AREA
FOR THE PERIOD JANUARY 1, 2013 THROUGH DECEMBER 31, 2013
This resolution appears as Resolution No. 10666.
F. Consideration of approval of resolutions pertaining to annual 77th Street maintenance
district assessment process and scheduling public hearing for August 13, 2012 S.R. No.
121
RESOLUTION NO.10667
RESOLUTION DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION
OF PROPOSED ASSESSMENT FOR 77TH STREET MAINTENANCE FOR THE PERIOD
JANUARY 1, 2011 THROUGH DECEMBER 31, 2011
This resolution appears as Resolution No. 10667.
RESOLUTION NO.10668
RESOLUTION PROPOSING TO SPECIALLY ASSESS FOR THE COSTS OF CURRENT
SERVICES PROVIDED WITHIN THE 77TH STREET PROJECT AREA FOR THE PERIOD
JANUARY 1, 2013 THROUGH DECEMBER 31, 2013
This resolution appears as Resolution No. 10668.
G. Consideration of approval of resolution declaring costs to be assessed for removal of
diseased trees from private property for work ordered in 2011 and scheduling public
hearing for August 13, 2012 S.R. No. 122
RESOLUTION NO.10669
RESOLUTION DECLARING COSTS TO BE ASSESSED
AND ORDERING PREPARATION OF PROPOSED ASSESSMENT
FOR REMOVAL OF DISEASED TREES FROM PRIVATE PROPERTY
FOR THE PERIOD OF JANUARY 1, 2011 TO DECEMBER 31, 2011
This resolution appears as Resolution No. 10669.
H. Consideration of approval of:
• Revisions to West Connection and East Connection Bicycle Route Project Plans; and
• Resolution authorizing amendment of MnDOT Agreement No. 99916 accepting
additional funds in amount of$100,675 for additional engineering and construction
changes for project; and
• Resolution for"No Parking" on west side of Bloomington Avenue (between 66th Street
and Diagonal Boulevard) and areas of Humboldt Avenue (between 69th and 75th
Streets) S.R. No. 123
Council Meeting Minutes -4- July 10,2012
RESOLUTION NO.10670
RESOLUTION AUTHORIZING AMENDMENT OF AGENCY AGREEMENT NO. 99916
BETWEEN THE MINNESOTA DEPARTMENT OF TRANSPORTATION AND THE
CITY OF RICHFIELD ACCEPTING ADDITIONAL FUNDS IN THE AMOUNT OF
$100,675 FOR FEDERAL PARTICIPATION IN TWO NON-MOTORIZED
TRANSPORTATION PILOT PROGRAM PROJECTS
This resolution appears as Resolution No. 10670.
RESOLUTION NO.10671
RESOLUTION RELATING TO TRAFFIC CONTROL SIGNS
"NO PARKING" ON BLOOMINGTON AVENUE
This resolution appears as Resolution No. 10671.
M/Goettel, S/Sandahl to approve the Consent Calendar.
Transportation Engineer Pearson explained the advisory bike lanes on Bloomington
Avenue and MnDOT requirements.
Motion carried 5-0.
Item #5 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT
CALENDAR
None.
Item #6 CONSIDERATION OF:
• FIRST READING OF ORDINANCE GRANTING CABLE TELEVISION
FRANCHISE TO COMCAST OF ARKANSAS/FLORIDA/LOUISIANA/
MINNESOTA/MISSISSIPPI/TENNESSEE, INC.; AND
• FIRST READING OF ORDINANCE REPEALING RICHFIELD CITY CODE
SECTION 726; AND
• SCHEDULING PUBLIC HEARING AND SECOND READING OF
ORDINANCES ON AUGUST 13, 2012 S.R. NO. 124
Mayor Goettel presented Staff Report No. 124.
City Manager Devich explained the average Comcast customer will not notice a change,
there will be no change in the collection of franchise fees, and the City will receive additional funds
to upgrade and purchase cable equipment.
M/Goettel, S/Wroge to approve first reading of ordinance granting cable television franchise
to Comcast of Arkansas/Florida/Louisiana/Minnesota/Mississippi/Tennessee, Inc., first reading of
ordinance repealing Richfield City Code Section 726, and scheduling public hearing and second
reading of ordinances on August 13, 2012.
Motion carried 5-0.
Council Meeting Minutes -5- July 10,2012
Item#7 CONSIDERATION OF:
• RESOLUTION AMENDING CITY'S COMPREHENSIVE PLAN BY
CHANGING DESIGNATION OF 301 —77111 STREET WEST TO
COMMUNITY COMMERCIAL/OFFICE; AND
• ORDINANCE REZONING PROPERTY AT 301 —77TH STREET WEST
FROM MIXED USE—COMMUNITY TO PLANNED MIXED USE; AND
• RESOLUTION APPROVING FINAL DEVELOPMENT PLAN AND
CONDITIONAL USE PERMIT TO ALLOW CONSTRUCTION OF AUTO
BODY/MECHANICAL REPAIR SHOP AT 301 —77TH STREET WEST; AND
• RESOLUTION AUTHORIZING SUMMARY PUBLICATION OF
ORDINANCE REZONING 301 —77TH STREET WEST S.R. NO 125
Council Member Wroge presented Staff Report No. 125.
Community Development Director Stark discussed the conditions required to be met in a
revised site plan. He also explained the outstanding items related to a shared parking agreement.
Candlewood's local and corporate offices have been kept informed throughout the process.
Community Development Director Stark explained the proximity of the railroad tracks and
the inability to move the existing driveway. He also explained the opaque screening to buffer the
sight of vehicles waiting for repair.
M/Wroge, S/Goettel that this constitutes the second reading of Bill No. 2012-8 approving
rezoning property at 301 —77th Street West from Mixed Use—Community to Planned Mixed Use,
that it be published in the official newspaper and that it be made part of these minutes, and that the
following resolutions be adopted and that they be made part of these minutes:
RESOLUTION NO.10672
RESOLUTION AMENDING THE CITY'S COMPREHENSIVE PLAN
CHANGING THE DESIGNATION OF
301 WEST 77TH STREET TO "COMMUNITY COMMERCIAL/OFFICE"
This resolution appears as Resolution No. 10672.
RESOLUTION NO.10673
RESOLUTION APPROVING A FINAL DEVELOPMENT PLAN AND CONDITIONAL USE PERMIT
FOR AN AUTO BODY/MECHANICAL REPAIR SHOP AT 301 77TH STREET WEST
This resolution appears as Resolution No. 10673.
RESOLUTION NO.10674
RESOLUTION APPROVING SUMMARY PUBLICATION OF AN ORDINANCE AMENDING
APPENDIX 1 OF THE CODE OF THE CITY OF RICHFIELD
This resolution appears as Resolution No. 10674.
Motion carried 5-0.
Item #8 CONSIDERATION OF CONFIRMATION OF CITY MANAGER'S APPOINTMENT
OF TODD SANDELL AS PUBLIC SAFETY DIRECTOR FOR CITY OF RICHFIELD
S.R. NO. 126
Council Member Fitzhenry presented Staff Report No. 126.
M/Fitzhenry, S/Goettel to approve confirmation of City Manager's appointment of Todd
Sandell as Public Safety Director for City of Richfield.
Council Meeting Minutes -6- July 10,2012
Motion carried 5-0.
Item#9 CITY MANAGER'S REPORT
City Manager Devich reported on the Employee Wellness Program's recent award.
Item #10 CLAIMS AND PAYROLLS
M/Wroge, S/Sandahl that the following claims and payrolls be approved:
U.S. Bank 07/10/12
A/P Checks: 214302-214550 $ 1,051,917.19
Payroll: 85018-85386; 41883—41885 $ 593,410.44
TOTAL $ 1,645,327.63
Motion carried 5-0.
OPEN FORUM
None.
ADJOURNMENT
The City Council meeting was adjourned by unanimous consent at 8:17 p.m.
Date Approved: July 24, 2012
Debbie Goettel
Mayor
Cheryl Krumholz Steven L. Devich
Executive Coordinator City Manager
AGENDA SECTION: CONSENT
AGENDA ITEM# 3A
REPORT# 127
IP STAFF REPORT
RICHFIELD CITY COUNCIL MEETING
JULY 24, 2012
monwig
REPORT PREPARED BY: CHRIS REGIS,FINANCE MANAGER
&AME,TITLE _
DEPARTMENT DIRECTOR REVIEW: d 4 I I ,
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REVIEWED BY CITY MANAGER: / L i
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ITEM FOR COUNCIL CONSIDERATION:
Consideration of approval of a Post-Issuance Debt Compliance Policy and an update to the
City's Fund Balance Policy.
I. RECOMMENDED ACTION:
By Motion: Approve the Post-Issuance Debt Compliance Policy and
updated Fund Balance Policy.
H. BACKGROUND
The Internal Revenue Service (IRS) is responsible for enforcing compliance with
IRS Code and Treasury Regulations with regard to the issuance of certain debt
issuances made by governmental entities. The IRS and bond rating agencies
encourage issuers of debt obligations to adopt and implement a post-issuance debt
compliance policy to ensure compliance against post-issuance violations.
It is a sound management and financial practice for the City to monitor their debt
obligations to ensure compliance with the IRS Code and Treasury Regulations. The
attached policy and procedures have been drafted to help ensure compliance.
In addition, staff has reviewed and updated the City's Fund Balance Policy as an
outcome of the 2011 annual audit.
0724Debt and Fund Balance Policies
III. BASIS OF RECOMMENDATION
A. POLICY
• The IRS and bond rating agencies encourage governmental entities to
adopt and implement a post-issuance debt compliance policy.
• It is the practice of the City of Richfield to follow established financial
policies governing the City's practices related to fiscal management
and debt management.
•
B. CRITICAL TIMING ISSUES
• N/A
C. FINANCIAL
• N/A
D. LEGAL
• N/A
IV. ALTERNATIVE RECOMMENDATION(S)
• N/A
V. ATTACHMENTS
• City of Richfield Fund Balance Policy
• City of Richfield Post-Issuance Debt Compliance Policy
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
3�- I
FUND BALANCE POLICY
City of Richfield
Financial Policy
Date: July 24,2012
Subject: Fund Balance Policy
Introduction
The City of Richfield has a fiduciary responsibility to its citizens and taxpayers to
carefully account for public funds,to manage its finances prudently and to adequately
plan the financing of City services including the provision and maintenance of public
facilities. The City is also responsible for its short-term and long-term financial stability.
The City must insure that it is, and will continue to be, capable of adequately funding and
providing City services needed by the community.
Governmental funds report the difference between their assets and liabilities as fund
balance. Fund balance is one method used to measure the availability of financial
resources in a governmental fund. It is essential that the City maintain adequate levels of
fund balance to mitigate current and future risks, such as revenue shortfalls,unanticipated
expenditures, and emergencies and to ensure stable tax rates, service levels, and adequate
cash flows. Fund balance levels are a crucial consideration in long-term financial
planning.
This policy supersedes the previous policy adopted April 18,2005.
I. SCOPE
This fiscal policy provides the framework for the overall fiscal management of the fund
balances for the City's governmental funds. Governmental funds include the general
fund, special revenue funds, debt service funds, and capital project funds. Enterprise
funds and internal service funds are not within the scope of this policy since they are not
governmental funds.
II. PURPOSE
The purpose of this policy is to (1) improve clarity and consistency of the fund balance
information provided; (2) establish targeted fund balance for the General Fund; and(3)
define and integrate the City's fund balance policy for its governmental funds in
compliance with generally accepted accounting principles (GAAP) and Governmental
Accounting Standards Board(GASB) Statement No. 54,Fund Balance Reporting and
Governmental Fund Type Definitions.
3�- a
III. FUND BALANCE REPORTING
Fund balance for governmental funds should be reported in classifications that comprise a
hierarchy based primarily on the extent to which the City is bound to honor constraints on
the specific purposes for which amounts in those funds can be spent. The classifications
are as follows:
Restricted:
A. Nonspendable—includes amounts that can not be spent because they are either
(a)not in spendable form or(b) legally or contractually required to be
maintained intact. The"not in spendable form"criterion includes items that are
not expected to be converted to cash, for example, inventories and prepaid
amounts. It also includes long-term receivables and property held for resale
which are not otherwise restricted, committed or assigned.
B. Restricted—amounts that can be spent only for specific purposes stipulated by
external resource providers or creditors, enabling legislation, or constitutional
provisions. Effectively,restrictions may be changed or lifted only with the
consent of the resource provider.
Unrestricted:
C. Committed—amounts that can be used only for specific purposes determined
by a formal action of the City Council,the City's highest level of decision-
making authority. Commitments may be changed or lifted only by the City
Council taking the same formal action that imposed the constraint originally.
The action to commit should occur prior to the end of the reporting period,but
the amount,if any,may be determined in the subsequent period.
D. Assigned—includes amounts constrained by the City's intent to be used for
specific purposes but are neither restricted nor committed. The City's intent
should be expressed by the City's Finance Manager. The City Council
authorizes the Finance Manager to determine the Assigned fund balance
reflecting the City Council's intent to include(a) all remaining amounts(except
for negative balances)in governmental funds other than the general fund,which
are not classified as nonspendable,restricted or committed and(b) amounts in
the general fund that are intended to be used for a specific purpose.
Assignments which result in a deficit to the unassigned fund balance are not
allowed.
E. Unassigned—residual amounts in the general fund which have not been
classified as nonspendable,restricted, committed or assigned. It is also used for
other governmental funds with a negative fund balance.
IV. FUND BALANCE CLASSIFICATION HIERARCHY
When both restricted and unrestricted resources are available for use in the same fund, it
is the policy of the City to use the most restricted resources first, and then as needed use
the unrestricted resources. When unrestricted resources are available for use,they will be
used in the following order: (first to last) committed; assigned; and unassigned.
V. GENERAL FUND TARGETED FUND BALANCE
The unassigned fund balance of the General Fund will fluctuate from year to year
depending upon the overall results of operations compared to the budget. Budgets may
vary from one year to the next as well. As a result the unassigned amount of the fund
balance may be more than adequate one year but deficient in the next. Reacting to each
year's variance should be thoughtful and deliberate.
A. In order to achieve its purpose,this policy has the following objectives for the
level of unassigned fund balance in the General Fund:
1. Provide for adequate and effective cash-flows,reducing/eliminating the need
for short-term internal borrowing. Both the revenue and expenditure
streams should be considered while determining the appropriate amounts of
fund balance. A number of the City's anticipated operating revenues are not
evenly received throughout the year. The City will need sufficient beginning
fund balance to pay expenditures until these revenues are received. For
example,the City's General Fund relies very heavily upon property tax
revenues. They are received about 6 months into the fiscal year and again at
the end of the year. Sufficient financial resources must be maintained until
the next property tax revenue collection cycle.
2. Provide for temporary revenue shortfalls, such as reductions in State Aid
revenues and reimbursements.
3. Provide financial stability and a positive trend of fund balance levels which
will be a positive factor in our bond rating analysis.
4. Generate investment earnings on the fund balances which will provide a
revenue source to the General Fund and in turn reduce pressure on the
general operating tax levy.
B. Targeted balance
1. The fund balance of the City's General Fund will strive to maintain an
unassigned fund balance of an amount not less than 40%of the current year
end actual General Fund revenues. The dollar amount of the target may
fluctuate with each year's actual results.
C. Replenishing and reducing the targeted stabilization fund balance
1. Deficits are to be avoided. Elimination of deficits in fund balance shall be
addressed during the budget process. It is the intent of the City Council and
this policy to address deficits and balances below the targeted amount within
three budget years. The subsequent year's budget should address the method
to eliminate the deficit. Methods may include but are not limited to using
annual budget surpluses,transfers in from other funds and adjustment of
other resources and budgets. Care will be exercised to maintain the integrity
of the City's long-term financial plans when determining the method to be
used to bring the fund balance back into conformance with the targeted
balance.
2. Amounts in excess of the targeted balance may be utilized in subsequent
years' budgets and/or transferred to other funds. Subsequent years' budgets
and/or transfers out of the General Fund must be approved by the City
Council.
3. The City Council may assign portions of the fund balance for other items
such as City projects and/or improvements, emergency or unanticipated
expenditures, etc.
VI.OTHER GOVERNMENTAL FUNDS
A. Special Revenue Funds—funds used to account for and report the proceeds of
specific revenue sources that are restricted or committed to expenditure for
specified purposes other than debt service or capital projects. The term proceeds
of specific revenue sources establishes that one or more specific restricted or
committed revenues should be the foundation for a special revenue fund.
Accordingly,the fund balances of City Special Revenue funds will be considered
as committed or restricted.
B. Debt Service Funds—funds used to set aside resources to meet current and future
debt service requirements on long-term debt. GAAP permits the use of debt
service funds to account for the accumulation of resources for, and the payment
of, long-term debt principal and interest. Sound financial management requires
that the City account for each debt issue separately in its accounting system.
Balances in individual debt service funds will be considered as restricted until
such time as each fund's respective debt is paid in full. At that time any surplus or
deficit remaining in the fund will be closed out to the Closed Bond Fund.
1. The fund balance of the Closed Bond Fund shall be considered as assigned.
2. Fund balances in the Bonds of 1973 Fund,which originally funded permanent
streets in the City, shall be considered as committed to provide supplemental
34-5
financing to the General Fund for street maintenance projects as needed on an
annual basis.
C. Capital Project Funds—funds used to account for and report financial resources
that are restricted, committed, or assigned to expenditure for capital outlays,
including the acquisition or construction of capital facilities and other capital
assets.
Capital Project Funds that are provided funding by external resource providers,
the fund balance in those funds will be considered restricted.
Balances in the Permanent Improvement Revolving Fund shall be used only as
directed by resolution of the City.As such balances in the fund will be considered
as committed.
Fund balances in other Capital Project Funds where amounts remain,but are
neither restricted nor committed will be considered as assigned, consistent with
the purpose of that specific fund.
VII. AUTHORITY
The Finance Manager is authorized to assign amounts within the fund balance of the
City's governmental funds to be used for specific purposes in conformity with GAAP and
GASB pronouncements and to be consistent with this policy and the intent of the City
Council.
Approved: /s/Steven L.Devich
City Manager
snv (f
Post-Issuance Debt Compliance Policy
City of Richfield
Financial Policy
Date: July 24, 2012
Subject: Post-Issuance Debt Compliance Policy
Introduction
The City Council (the "Council") of the City of Richfield, Minnesota (the "City") has
chosen, by policy, to take steps to help ensure that all obligations will be in
compliance with all applicable federal regulations. This policy may be amended, as
necessary, in the future.
Background
The Internal Revenue Service (IRS) is responsible for enforcing compliance with the
Internal Revenue Code (the "Code") and regulations promulgated thereunder
("Treasury Regulations") governing certain obligations (for example: tax-exempt
obligations, Build America Bonds, Recovery Zone Development Bonds and various
"Tax Credit" Bonds). The IRS encourages issuers and beneficiaries of these
obligations to adopt and implement a post-issuance debt compliance policy and
procedures to safeguard against post-issuance violations.
Post-Issuance Debt Compliance Policy Objective
The City desires to monitor these obligations to ensure compliance with the Code and
Treasury Regulations. To help ensure compliance, the City has developed the
following policy (the "Post-Issuance Debt Compliance Policy"). The Post-Issuance
Debt Compliance Policy shall apply to the obligations mentioned above, including
bonds, notes, loans, lease purchase contracts, lines of credit, commercial paper or
any other form of debt that is subject to compliance.
Post-Issuance Debt Compliance Policy
The Finance Manager of the City is designated as the City's agent who is responsible
for post-issuance compliance of these obligations.
The Finance Manager shall assemble all relevant documentation;r€cord-s- and
activities required to ensure post-issuance debt compliance as further detailed in
corresponding.procedures (the "Post-Issuance Debt Compliance Procedures"). At a
minimum, the Post-Issuance Debt Compliance Procedures for each qualifying
obligation will address the following:
3A -1
1. General post-issuance compliance;
2. Proper and timely use of obligation proceeds and obligation-financed property;
3. Arbitrage yield restriction and rebate;
4. Timely filings and other general requirements;
5. Additional undertakings or activities that support points 1 through 4 above;
6. Maintenance of proper records related to the obligations and the investment of
proceeds of obligations;
7. Other requirements that become necessary in the future.
The Finance Manager shall apply the Post-Issuance Debt Compliance Procedures to
each qualifying obligation and maintain a record of the results. Further, the Finance
Manager will ensure that the Post-Issuance Debt Compliance Policy and Procedures
are updated on a regular and as needed basis.
The Finance Manager or any other individuals responsible for assisting the Finance
Manager in maintaining records needed to ensure post-issuance debt compliance, are
authorized to expend funds as needed to attend training or secure use of other
educational resources for ensuring compliance such as consulting, publications, and
compliance assistance.
Most of the provisions of this Post-Issuance Debt Compliance Policy are not
applicable to taxable governmental obligations unless there is a reasonable possibility
that the City may refund their taxable governmental obligation, in whole or in part, with
the proceeds of a tax-exempt governmental obligation. If this refunding possibility
exists, then the Finance Manager shall treat the taxable governmental obligation as if
such issue were an issue of tax-exempt governmental obligations and comply with the
requirements of this Post-Issuance Debt Compliance Policy.
Private Activity Bonds
The City may issue tax-exempt obligations that are "private activity" bonds because
either (1) the bonds finance a facility that is owned by the City but used by one or '
more qualified 501(c)(3) organizations, or (2)the bonds are so-called "conduit bonds",
where the proceeds are loaned to a qualified 501(c)(3) organization or another private
entity that finances activities eligible for tax-exempt financing under federal law (such
as certain manufacturing projects and certain affordable housing projects). Prior to
the issuance of either of these types of bonds, the Finance Manager shall take steps
necessary to ensure that such obligations will remain in compliance with the
requirements of this Post-Issuance Debt Compliance Policy.
In a case where compliance activities are reasonably within the control of a private
party (i.e., a 501(c)(3) organization or conduit borrower), the Finance Manager may
determine that all or some portion of compliance responsibilities described in this
Post-Issuance Debt Compliance Policy shall be assigned to the relevant party. In the
case of conduit bonds, the conduit borrower will be assigned all compliance
responsibilities other than those required to be undertaken by the City under federal
5 A-$
law. In a case where the Finance Manager is concerned about the compliance ability
of a private party, the Finance Manager may require that a trustee or other
independent third party be retained to assist with record keeping for the obligation
and/or that the trustee or such third party be responsible for all or some portion of the
compliance responsibilities.
The Finance Manager is additionally authorized to seek the advice, as necessary, of
bond counsel and/or its financial advisor to ensure the City is in compliance with this
Post-Issuance Debt Compliance Policy.
Adopted this date July 24, 20120 by the City Council of the City of Richfield,
Minnesota
AGENDA SECTION: CONSENT
AGENDA ITEM# 3B
REPORT# 128
STAFF REPORT
kil l lFir>>D CITY COUNCIL MEETING
JULY 24, 2012
REPORT PREPARED BY: CHRIS REGIS,FINANCE MANAGER
NAME,Tint.
DEPARTMENT DIRECTOR REVIEW: �,
111 Ala
SIGNA )
REVIEWED BY CITY MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Adoption of a resolution authorizing the prepayment and redemption of the $750,000 Taxable
G.O. Improvement Bonds, Series 1997, dated December 1, 1997.
I. RECOMMENDED ACTION:
By Motion: Approve the attached resolution providing for the
prepayment and redemption of certain outstanding general obligation
bonds of the City.
II. BACKGROUND
In 1997 the City issued the $750,000 Taxable G.O. Improvement Bonds, Series
1997 for the purpose of financing improvements as part of the Meridian Crossing
project.
The principal and interest due on the bonds has been paid from special
assessments levied against the benefited properties. Over the life of the bond, the
debt service fund has accumulated a cash balance that would allow the prepayment
and redemption of the debt.
Staff has requested Ehlers and Associates to review outstanding debt issues to
determine if refunding or defeasance of bonds is feasible. Upon review of the 1997
issue, Ehlers &Associates, Inc. recommends the redemption and prepayment of
the 1997 issue. The outstanding principal and interest due on February 1, 2013 is
$82,600. It is planned to call the bonds on August 29, 2012.
0724Defesance 1997 Bonds
The end result of the prepayment and redemption of this bond issue is a net
present value savings of$2,195.56 to the City.
III. BASIS OF RECOMMENDATION
A. POLICY
• It is the policy of the City to seek to reduce principle and interest
expenses of outstanding debt issues wherever possible. Most often
this is accomplished by seeking refunding opportunities during periods
of low interest rates.
B. CRITICAL TIMING ISSUES
• The prepayment and redemption on August 29, 2012 will allow the
City to take advantage of savings on interest costs.
C. FINANCIAL
• On the basis of Ehlers &Associates, Inc. review, it appears it feasible
to prepay and redeem the bond issue.
• There is sufficient cash in the debt service fund to call the bonds early.
• The total principal and interest due on February 1, 2012 is $82,600.00.
By calling the bonds on August 29, 2012 the City will realize a savings
of$2,195.56.
• The par amount of the Series 1997 bonds which will be callable on
August 29, 2012 is 80,000 and with accrued interest to August 29,
2012 of$40444 the total call amount is$80,404.44.
D. LEGAL
• Legal counsel has reviewed the reviewed the prepayment and
redemption of the 1997 bonds.
E. ENVIRONMENTAL CONSIDERATIONS
• None
IV. ALTERNATIVE RECOMMENDATION(S)
• Disregard the current call option, continue to retire the bonded debt as
presently scheduled, and forego the projected savings.
V. ATTACHMENTS
• Resolution Providing for the prepayment and redemption of the $750,000
Taxable G.O. Improvement Bonds, Series 1997.
• Exhibit A Notice of Call for Redemption
• Prepayment Redemption Report
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Representative from Ehlers &Associates, Inc.
RESOLUTION NO.
RESOLUTION PROVIDING FOR THE PREPAYMENT AND
REDEMPTION OF CERTAIN OUTSTANDING GENERAL
OBLIGATION BONDS OF THE CITY
BE IT RESOLVED By the City Council of the City of Richfield, Minnesota (the
"City"), as follows:
1. The City has previously issued and sold its Taxable General Obligation
Improvement Bonds, Series 1997, dated December 1, 1997 (the "Bonds"), in the
aggregate principal amount of $750,000, of which $80,000 in principal amount is currently
outstanding. Bonds maturing on or after February 1, 2006, are subject to call for prior
redemption on February 1, 2005, or on any date thereafter at a price of par plus accrued
interest. Redemption may be in whole or in part, and if in part, at the option of the City and
in such order as the City will determine and within a maturity selected by Wells Fargo
Bank, National Association (as successor in interest to Norwest Bank Minnesota, National
Association), Minneapolis, Minnesota, acting as the registrar for the Bonds (the
"Registrar"). Prepayments will be at a price of par plus accrued interest.
2. It is determined that it is in the best interests of the sound financial
management of the City that Bonds maturing on February 1, 2013, comprising all of the
Bonds subject to redemption, be prepaid and redeemed on August 29, 2012 (or on the first
date thereafter for which the Registrar of the Bonds can provide proper notice to the
holders of the Bonds), and those Bonds are hereby called for redemption on that date in
the aggregate principal amount of$80,000.
3. The Registrar is authorized and directed to mail notice of call for redemption
of the Bonds in the form attached hereto as EXHIBIT A to the registered owners of the
Bonds to be redeemed at the address shown on the registration books kept by the
Registrar.
Adopted by the City Council of the City of Richfield, Minnesota this 24th day of July, 2012.
Debbie Goettel, Mayor
ATTEST:
e
Nancy Gibbs, City Clerk
30-a-
EXHIBIT A
NOTICE OF CALL FOR REDEMPTION
$750,000
CITY OF RICHFIELD, MINNESOTA
TAXABLE GENERAL OBLIGATION IMPROVEMENT BONDS
SERIES 1997
NOTICE IS HEREBY GIVEN that, by order of the City Council of the City of
Richfield, Minnesota (the "City"), there have been called for redemption and prepayment
on
August 29, 2012
all outstanding bonds of the City designated as the Taxable General Obligation
Improvement Bonds, Series 1997, dated December 1, 1997, having a stated maturity date
of February 1, 2013, totaling $80,000 in principal amount, and with the CUSIP number
763325 C54.
The bonds are being called at a price of par plus accrued interest to August 29,
2012, on which date all interest on said bonds will cease to accrue. Holders of the bonds
hereby called for redemption are requested to present their bonds for payment at the main
office of Wells Fargo Bank, National Association (as successor in interest to Norwest Bank
Minnesota, National Association), in the City of Minneapolis, Minnesota, on or before
August 29, 2012, at the following address:
Wells Fargo Bank, National Association
Attention: Corporate Trust Operations
625 Marquette Avenue
MAC N9311-115
Minneapolis, MN 55479
In compliance with the Economic Growth and Tax Relief Reconciliation Act of 2003,
the City is required to withhold a specified percentage of the principal amount of the
redemption price payable to the holder of any Bonds subject to redemption and prepayment
on the Redemption Date, unless the City is provided with the Social Security Number or
Federal Employer Identification Number of the holder, properly certified. Submission of a fully
executed Request for Taxpayer Identification Number and Certification, Form W-9 (Rev.
December 2011), will satisfy the requirements of this paragraph.
Dated: , 2012.
BY ORDER OF THE CITY COUNCIL
By /s/ Steven Devich
City Manager
City of Richfield, Minnesota
3 5-3
City of Richfield
Proposed August 29, 2012 Cash Defesance of
$750,000 Taxable G.O. Improvement Bonds, Series 1997
Table of Contents
Report
Sources&Uses l
Debt Service To Maturity And To Call 2
Debt Service Comparison 3
2012 Def Ser 97$750K GO I SINGLE PURPOSE I 7/12/2012 I 229 PM
• EHLERS
LEADERS IN PUBLIC FINANCE
City of Richfield
Proposed August 29, 2012 Cash Defesance of
$750,000 Taxable G.O. Improvement Bonds, Series 1997
Sources & Uses
Dated 08/29/2012 I Delivered 08/29/2012
Sources Of Funds
Par Amount of Bonds $80,404.44
Total Sources $80,404.44
Uses Of Funds
Deposit to Current Refunding Fund 80,404.44
Total Uses $80,404.44
•
2012 Def Ser 97$750K GO I SINGLE PURPOSE I 7/12/2012 I 2:29 PM
0 EHLERS
LEADERS IN PUBLIC FINANCE Page 1
313-9.
City of Richfield
$750,000 Taxable G.O. Improvement Bonds, Series 1997
Debt Service To Maturity And To Call
Refunded Refunded Refunded
Date Bonds Interest WS To Call Principal Coupon Interest WS
08/29/2012 80,000.00 404.44 80,404.44 - - - -
02/01/2013 - - - 80,000.00 6.500% 2,600.00 82,600.00
Total $80,000.00 $404.44 $80,404.44 $80,000.00 - $2,600.00 $82,600.00
Yield Statistics
Base date for Avg.Life&Avg.Coupon Calculation 8/29/2012
Average Life 0.422 Years
Average Coupon 7.6973684%
Weighted Average Maturity(Par Basis) 0.422 Years
Refunding Bond Information
Refunding Dated Date 8/29/2012
Refunding Delivery Date 8/29/2012 .
Ser 97$750K GO Taxable I I SINGLE PURPOSE I 7/12/2012 I 2:29 PM
111:411 EHLERS
LEADERS IN PUBLIC FINANCE Page 2
City of Richfield
Proposed August 29, 2012 Cash Defesance of
$750,000 Taxable G.O. Improvement Bonds, Series 1997
Debt Service Comparison
Net New Old Net
Date Total P+I D/S DIS Savinos
02/01/2013 80,404.44 80,404.44 82,600.00 2,195.56
Total $80,404.44 $80,404.44 $82,600.00 $2,195.56
PV Analysis Summary(Net to Nets
Net PV Cashflow Savings @ 0.000%(Escrow Yield)... 2,195.56
Net Present Value Benefit $2,195.56
Net PV Benefit/$82,600.00 PV Refunded Debt Service 2.658%
Net PV Benefit/ $80,000 Refunded Principal... 2.744%
Net PV Benefit/ $80,404 Refunding Principal.. 2.731%
Refunding Bond Information
Refunding Dated Date 8/29/2012
Refunding Delivery Date 8/29/2012
2012 Def Ser 97$750K GO I SINGLE PURPOSE I 7/12/2012 I 2:29 PM
leill EHLERS
LEADERS IN PUBLIC FINANCE Page 3
AGENDA SECTION: CONSENT
AGENDA ITEM# 3C
REPORT# 129
=Al STAFF REPORT
R rc r rr i r i r) CITY COUNCIL MEETING
JULY 24, 2012
REPORT PREPARED BY: CHRIS REGIS,FINANCE MANAGER
NAME,TITLE
DEPARTMENT DIRECTOR REVIEW: 4a)
REVIEWED BY CITY MANAGER: i
ITEM FOR COUNCIL CONSIDERATION:
Adoption of a resolution authorizing the refunding of the $3,470,000 G.O. Tax Increment
Bonds, Series 2003C, dated December 30, 2003 with the $2,560,000 Taxable G.O. Tax
Increment Refunding Bonds, Series 2012B.
I. RECOMMENDED ACTION:
By Motion: Approve the attached resolution providing preliminary
approval to the defeasance, redemption, and prepayment of the City's
Taxable General Obligation Tax Increment Bonds, Series 2003C,
dated December 30, 2003.
II. BACKGROUND
In 2003 the City issued the $3,470,000 Taxable G.O. Tax Increment Bonds, Series
2003C to refund the City's $4,840,000 Taxable General Obligation Temporary Tax
Increment Bonds, Series 2003k The 2003A bonds were issued to provide financing
for various public improvements within the Lyndale Gateway West Tax increment
Financing District.
With interest rates continuing to be at historical lows, staff has requested Ehlers &
Associates, Inc. to review this bond issue to determine if refunding was feasible at
this time. Upon review of this bond issue, Ehlers &Associates, Inc. recommends
undertaking a bond refunding to take advantage of the low interest rates.
0724Refunding 2003C Bonds
The type of refunding being presented is a crossover refunding. In a crossover
refunding, bonds are issued in advance of a specified call date. The proceeds of the
issue are invested in government securities and held in escrow. The money in the
escrow account is used to pay interest on the new issue until the call date. At the
call date, the funds in the escrow are then used to prepay the bonds to be called.
The City would then begin to make payments on the newly issued "refunding
bonds."
Accordingly, the Series 2012B bonds are being issued to provide funds sufficient for
a crossover refunding on February 1, 2014, of all of the City's callable Taxable G.O.
Tax Increment Bonds, Series 2003C, dated December 30, 2003. The par amount of
the Series 2003C bonds to be called on the call date is $2,400,000.
Staff estimates that the result of this crossover refunding will be a reduction of
$219,615 in principle and interest costs to the City. This represents a present value
savings of 7.08% of the refunded principle.
III. BASIS OF RECOMMENDATION
A. POLICY
• It is the policy of the City to seek to reduce principle and interest
expenses of outstanding debt issues wherever possible. Most often
this is accomplished by seeking refunding opportunities during periods
of low interest rates.
B. CRITICAL TIMING ISSUES
• The sale of the refunding bonds at this time will allow the City to take
advantage of the low interest rates and realize savings.
C. FINANCIAL
• On the basis of Ehlers &Associates, Inc. review, it appears that the
current interest rate climate makes it feasible to refund the bond issue.
• The current outstanding principal balance of the 2003C bonds is
$2,705,000. The City will continue to make the principal and interest
payments up to and on the crossover refunding date.
• The $2,560,000 Taxable G.O. Tax Increment Refunding Bonds,
Series 2012B are being issued to provide funds for a crossover
refunding on February 1, 2014, on all of the City's callable Taxable
G.O. Tax Increment Bonds, Series 2003C. The par amount of the
Series 2003C bonds which will be callable on February 1, 2014 total
$2,400,000, which will have maturities on February 1 in the years
2015 through 2025.
• It is estimated that this refinancing under current rates would reduce
the principle and interest costs of paying this debt by approximately
$219,615.
• This savings expressed in present value terms is around 7.08% of the
refunded principal. The minimum savings required by Minnesota state
law for an advanced refunding is a present value savings of 3.00%.
• It is the intent of the City to continue to use tax increment revenues
from the Lyndale Gateway West Tax Increment Financing District to
pay the debt service.
• The bonds are being issued for a 13-year period; this does not extend
the term of the original issue. The maturity date of the new refunding
issue will be the same as the current outstanding issue.
D. LEGAL
• Only one crossover refunding of the Series 2003C bonds is legally
allowed.
E. ENVIRONMENTAL CONSIDERATIONS
• None
IV. ALTERNATIVE RECOMMENDATION(S)
• Disregard the current refunding option, continue to retire the bonded debt as
presently scheduled, and forego the projected savings.
V. ATTACHMENTS
• Resolution Providing Preliminary Approval to the Defeasance, Redemption,
and Prepayment of the City's Taxable General Obligation Tax Increment
Bonds, Series 2003C.
• Presale Report
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Representative from Ehlers &Associates, Inc.
3C- I
RESOLUTION NO.
RESOLUTION PROVIDING PRELIMINARY APPROVAL TO
THE DEFEASANCE, REDEMPTION, AND PREPAYMENT OF
THE CITY'S TAXABLE GENERAL OBLIGATION TAX
INCREMENT BONDS, SERIES 2003C
BE IT RESOLVED By the City Council of the City of Richfield, Minnesota (the
"City"), as follows:
1. It is hereby determined that:
(a) The City and the Housing and Redevelopment Authority in and for the
City of Richfield (the "Authority") previously established the Richfield
Redevelopment Project Area (the "Project Area") pursuant to Minnesota Statutes,
Sections 469.001 through 469.047 (the "Act"). The City has duly established
Lyndale Gateway West Tax Increment Financing District (the "TIF District") within
the Project Area pursuant to Minnesota Statutes, Sections 469.174 to 469.179 (the
"TIF Act").
(b) On December 30, 2003, the City issued its Taxable General
Obligation Tax Increment Bonds, Series 2003C (the "Bonds"), in the original
aggregate principal amount of $3,470,000, pursuant to Section 469.178 of the TIF
Act. Proceeds of the Bonds were used to (i) refund the City's Taxable General
Obligation Temporary Tax Increment Bonds, Series 2003A, issued in the original
aggregate principal amount of$4,840,000; and (ii) finance additional redevelopment
costs related to the Project Area as set forth in the tax increment financing plan for
the TIF District.
(c) The Bonds are currently outstanding in the aggregate principal
amount of$2,705,000, and Bonds maturing on or after February 1, 2015 are subject
to optional redemption on February 1, 2014, or any day thereafter, at a price of par
plus accrued interest.
2. The City Council hereby provides its intention to defease, redeem, and
prepay the outstanding Bonds and shall meet at 7:00 PM on August 13, 2012, in order to
adopt a resolution calling the Bonds for redemption and setting forth the terms of the
defeasance, redemption, and prepayment of the Bonds.
3. The officers and employees of the City are hereby authorized to cooperate
with Ehlers & Associates, Inc., the financial advisor to the City, and Kennedy & Graven,
Chartered, as bond counsel, to the City in order to carry out the defeasance, prepayment,
and redemption of the Bonds.
Adopted by the City Council of the City of Richfield, Minnesota this 24th day of July, 2012.
Debbie Goettel, Mayor
ATTEST:
Nancy Gibbs, City Clerk
_ Debt Issuance Services
July 24, 2012
Pre-Sale Report for
$2,560,000 Taxable General Obligation Tax .
Increment Refunding Bonds, Series 2012B
City of Richfield, Minnesota
Prepared and Presented by
Rebecca Kurtz
RICHFIELD Financial Advisor, CIPFA
And
•
Brian Reilly
Financial Advisor, CIPFA
www.ehlers-inc.com
0 E H L E RS Minnesota phone 651-697-8500 3060 Centre Pointe Drive
LEADERS IN PUBLIC FINANCE Offices also In Wisconsin and Illinois fax 651-697-8555 Roseville,MN 55113-1122
toll free 800-552-1171
3C
_ _ Debt Issuance Services
~�
Executive Summary of Proposed Debt
Proposed Issue: $2,560,000 Taxable General Obligation Tax Increment Refunding
Bonds,Series 2012B
Authority: The TIF Bonds are being issued pursuant to Minnesota Statues,
Chapter 469 and 475.Because the City paying for at least 20%of the
project costs with TIF from the Lyndale Gateway West Tax
Increment Financing District (Kennsington development), the Bonds
can be a general obligation without a referendum and will not count
against the City's debt limit.
In the past, tax increment has paid 100 percent of the debt service,
and based on current conditions, it is projected that the TIF District
will continue to generate increment to support the debt service.
Purposes/Funding Sources: The proposed issue includes financing for the following purposes:
• Refunding the $3,470,000 Taxable General Obligation Tax
Increment Bonds,Series 2003C for interest savings
Interest rates on the obligations proposed to be refunded are 5.0%to
5.5%. The refunding is expected to reduce interest expense by
approximately $219,615 over the next 13 years. The Net Present
Value Benefit of the refunding is estimated to be $179,565, equal to
7.08%of the refunded principal.
This refunding is considered an Advance Refunding as the new
Bonds will be issued more than 90 days prior to the call date of the
obligations being refunded.
Term/Call Feature The Bonds are being issued for a 13 year term. Principal on the
Bonds will be due on February 1 in the years through 2015 - 2025.
Interest is payable every six months beginning February 1 2013. The
term of the Bonds is not being extended.
The Bonds maturing February 1, 2022, and thereafter will be subject
to prepayment at the discretion of the City on February 1,2021 or any
date thereafter.
Because the Bonds are taxable obligations they will not be designated
Bank Qualification as"bank qualified"obligations.
Presale Report July 24, 2012
City of Richfield, Minnesota Page 1
_ Debt Issuance Services
Rating: The City's most recent bond issues were rated"AA+"by Standard&
Poor's. The City will request a new rating for the Bonds.
If the winning bidder on the Bonds elects to purchase bond insurance,
the rating for the issue may be higher than the City's bond rating in
the event that the bond rating of the insurer is higher than that of the
City.
Method of Sale/Placement: In order to obtain the lowest interest cost to the City, we will solicit
competitive bids for purchase of the Bonds from local banks in your
area and regional underwriters.
We have included an allowance for discount bidding equal to 1.2%of
the principal amount of the issue. The discount is treated as an
interest item and provides the underwriter with all or a portion of its
compensation in the transaction.
If the Bonds are purchased at a price greater than the minimum bid
amount (maximum discount), the unused allowance may be used to
lower your borrowing amount.
Review of Existing Debt: We have reviewed all outstanding indebtedness for the City and find
that there are no other refunding opportunities at this time.
We will continue to monitor the market and the call dates for the
City's outstanding debt and will alert you to any future refunding
opportunities.
Continuing Disclosure: Because the City has more than $10,000,000 in outstanding debt
(including this issue) and this issue is over$1,000,000, the City will
be agreeing to provide certain updated Annual Financial Information
and its Audited Financial Statement annually as well as providing
notices of the occurrence of certain "material events" to the
Municipal Securities Rulemaking Board (the "MSRB"), as required
by rules of the Securities and Exchange Commission (SEC). The
City is already obligated to provide such reports for its existing
bonds,and has contracted with Ehlers to prepare and file the reports.
Arbitrage Monitoring: The Bonds are taxable obligations and are therefore not subject to
IRS arbitrage and yield restriction requirements.
0 Presale Report July 24, 2012
City of Richfield, Minnesota Page 2
Debt Issuance Services
Proposed Debt Issuance Schedule
Pre-Sale Review by Council: July 24,2012
Distribute Official Statement: Week of July 24,2012
Conference with Rating Agency: Week of July 30,2012
City Council Meeting to Award Sale of the Bonds: August 13,2012
Estimated Closing Date: Mid-September 2012
Attachments
Sources and Uses of Funds
Proposed Debt Service Schedule
Refunding Savings Analysis
Resolution Authorizing Ehlers to Proceed With Bond Sale
Ehlers Contacts:
Financial Advisors: Rebecca Kurtz (651)697-8516
Brian Reilly (651)697-8541
Bond Analyst: Wendy Lundberg (651)697-8540
Bond Sale Coordinator: Alicia Aulwes (651)697-8523
Financial Analyst: Brian Shannon (651)697-8515
The Official Statement for this financing will be mailed to the City Council at their home address or e-
mailed for review prior to the sale date.
Presale Report July 24, 2012
City of Richfield, Minnesota Page 3
LP
City of Richfield
$2,560,000 Taxable G.O. Refunding Bonds, Dated: September 1, 2012
Proposed Advance Refunding of Taxable G.O.TIF Bonds, Series 2003C
Current"AA"Taxable Rates
Table of Contents
Report
Sources&Uses 1
Prior Original Debt Service 2
Debt Service Schedule 3
Debt Service Comparison 4
Crossover Escrow Fund Cashflow 5
10 xover Ser 03C$3.47M T 1 10 xover Ser 03C$3.47M T 1 6/28/2012 I 2:30 PM
,ree LEADERS IN PUBLIC FINANCE
City of Richfield
$2,560,000 Taxable G.O. Refunding Bonds, Dated: September 1, 2012
Proposed Advance Refunding of Taxable G.O. TIF Bonds, Series 2003C
Current"AA"Taxable Rates
Sources & Uses
Dated 09/01/20121 Delivered 09/01/2012
Sources Of Funds
Par Amount of Bonds $2,560,000.00
Total Sources $2,560,000.00
Uses Of Funds
Total Underwriter's Discount(1.200%) 30,7201)0
Costs of Issuance 45,0001)0
Deposit to Crossover Escrow Fund 2,482,505.15
Rounding Amount 1,774.85
Total Uses $2,560,000.00
10 xover Ser 03C$3.47M T I 10 xover Ser 03C$3.47M T 61282012 I 2:30 PM
E -I LE R ►
LEADERS IN PUBLIC FINANCE Page 1
City of Richfield
$3,470,000 Taxable G.O. Tax Increment Bonds, Series 2003C
Prior Original Debt Service
Date Principal Coupon Interest Total P+I Fiscal Total
02/01/2013 150,000.00 5.000% 59,398.96 209,398.96 209,398.96
08/01/2013 - - 67,528.75 67,528.75 -
02/01/2014 155,000.00 5.000% 67,528.75 222,528.75 290,057.50
08/01/2014 - - 63,653.75 63,653.75 -
02/01/2015 165,000.00 5.000% 63,653.75 228 653.75 292,307.50
08/01/2015 - - 59,528.75 59,528.75 -
02/01/2016 175,000.00 5.000% 59,528.75 234,528.75 294,057.50
08/01/2016 - - 55,153.75 55,153.75 -
02/01/2017 185,000.00 5.125% 55,153.75 240,153.75 295,307.50
08/01/2017 - - 50,413.13 50,413.13 -
02/01/2018 195,000.00 5200% 50,413.13 245,413.13 295,826.26
08/01/2018 - - 45,343.13 45,343.13 -
02/01/2019 205,000.00 5250% 45,343.13 250,343.13 295,68626
08/01/2019 - - 39,961.88 39,961.88 -
02/01/2020 215,000.00 5.300% 39,961.88 254,961.88 294,923.76
08/01/2020 - - 34,26438 34,264.38 -
02/01/2021 225,000.00 5.375% 34,26438 259,264.38 293,528.76
08/01/2021 - - 28,217.50 28,217.50 -
02/01/2022 240,000.00 5.400% 28,21750 268,217.50 296,435.00
08/01/2022 - - 21,73750 21,737.50 -
02/01/2023 250,000.00 5.400% 21,73750 271,737.50 293,475.00
08/01/2023 - - 14,98750 14,987.50 -
02/01/2024 265,000.00 5.500% 14,98750 279,987.50 294,975.00
08/01/2024 - - 7,700.00 7,700.00 -
02/01/2025 280,000.00 5.500% 7,700.00 287,700.00 295,400.00
Total $2,705,000.00 - $1,036,379.00 $3,741,379.00 -
Yield Statistics
Base date for Avg.Life&Avg.Coupon Calculation 9/01/2012
Average Life 7.143 Years
Average Coupon 5.3637022%
Weighted Average Maturity(Par Basis) 7.143 Years
Refunding Bond Information
Refunding Dated Date 9/01/2012
Refunding Delivery Date 9/01/2012
Ser 03C$3.47M Taxable GO I SINGLE PURPOSE I 6/28/2012 I 2:30 PM
EHLERS
LEADERS IN PUBLIC FINANCE Page 2
3c-9
City of Richfield
$2,560,000 Taxable G.O. Refunding Bonds, Dated: September 1, 2012
Proposed Advance Refunding of Taxable G.O.TIF Bonds, Series 2003C
Current"AA"Taxable Rates
Debt Service Schedule
Date Principal Coupon Interest Total P+i Fiscal Total
09/01/2012 - - - - -
02/01/2013 - - 26,612.50 26,612.50 26,612.50
08/01/2013 - - 31,935.00 31,935.00 -
02/01/2014 - - 31,935.00 31,935.00 63,870.00
08/01/2014 - - 31,935.00 31,935.00 -
02/01/2015 210,000.00 1.150% 31,935.00 241,935.00 273,870.00
08/01/2015 - - 30,727.50 30,727.50 -
02/01/2016 215,000.00 1.350% 30,727.50 245,727.50 276,455.00
08/01/2016 - - 29,276.25 29,276.25 -
02/01/2017 215,000.00 1.550% 29,276.25 244,276.25 273,552.50
08/01/2017 - - 27,610.00 27,610.00 -
02/01/2018 220,000.00 1.800% 27,610.00 247,610.00 275,220.00
08/01/2018 - - 25,630.00 25,630.00 -
02/01/2019 225,000.00 2.300% 25,630.00 250,630.00 276,260.00
08/01/2019 - - 23,042.50 23,042.50 -
02/01/2020 230,000.00 2.550% 23,042.50 253,042.50 276,085.00
08/01/2020 - - 20,110.00 20,110.00 -
02/01/2021 235,000.00 2.800% 20,110.00 255,110.00 275,220.00
08/01/2021 - - 16,820.00 16,820.00 -
02/01/2022 245,000.00 3.050% 16,820.00 261,820.00 278,640.00
08/01/2022 - - 13,083.75 13,083.75 -
02/01/2023 245,000.00 3.250% 13,083.75 258,083.75 271,167.50
08/01/2023 - - 9,102.50 9,10250 -
02/01/2024 255,000.00 3.450% 9,102.50 264,10230 273,205.00
08/01/2024 - - 4,703.75 4,703.75 -
02/01/2025 265,000.00 3.550% 4,703.75 269,703.75 274,407.50
Total $2,560,000.00 - $554,565.00 $3,114,565.00 -
Yield Statistics
Bond Year Dollars $19,571.67
Average Life 7.645 Years
Average Coupon 2.8335093%
Net Interest Cost(MC) 2.9904709%
True Interest Cost(TIC) 2.9850804%
Bond Yield for Arbitrage Purposes 2.8068630%
All Inclusive Cost(AIC) 3.2513069%
IRS Form 8038
Net Interest Cost 2.8335093%
Weighted Average Maturity 7.645 Years
10'cover Se:03C$3.47M T 110'cover Ser 03C$3.47M T I 6/282012 I 2 30 PM
.- E H LE RS Page 3
LEADERS IN PUBLIC FINANCE
3c- ID
City of Richfield
$2,560,000 Taxable G.O. Refunding Bonds, Dated: September 1, 2012
Proposed Advance Refunding of Taxable G.O. TIF Bonds, Series 2003C
Current"AA"Taxable Rates
Debt Service Comparison
Const Loan
Date Total P+I Pmt Existing D/S Net New D/S Old Net D/S Savings
02/01/2013 26,612.50 (26,612.50) 209,398.96 207,624.11 209,398.96 1,774.85
02/01/2014 63,870.00 (2,463,870.00) 2,690,057.50 290,057.50 290,057.50 -
02/01/2015 273,870.00 - - 273,870.00 292,307.50 18,437.50
02/01/2016 276,455.00 - - 276,455.00 294,05750 17,602.50
02/01/2017 273,552.50 - - 273,552.50 295,307.50 21,755.00
02/01/2018 275,220.00 - - 275,220.00 295,82626 20,606.26
02/01/2019 276,260.00 - - 276,260.00 295,68626 19,426.26
02/01/2020 276,085.00 - - 276,085.00 294,923.76 18,838.76
02/01/2021 275,220.00 - - 275,220.00 293,528.76 18,308.76
02/01/2022 278,640.00 - - 278,640.00 296,435.00 17,795.00
02/01/2023 271,167.50 - - 271,167.50 293,475.00 22,307.50
02/01/2024 273,205.00 - - 273,205.00 294,975.00 21,770.00
02/01/2025 274,407.50 - - 274,407.50 295,400.00 20,992.50
Total $3,114,565.00 (2,490,482.50) $2,899,456.46 $3,521,764.11 $3,741,379.00 $219,614.89
PV Analysis Summary(Net to Net)
Gross PV Debt Service Savin 1 s. 179 56455
Net PV Cashflow Savings @ 2.807%(Bond Yield).».. 179,56455
Contingency or Rounding Amount. 1,774.85
Net Present Value Benefit $181,33940
Net PV Benefit/$2,651,43142 PV Refunded Debt Service 6.839%
Net PV Benefit/$2,400,000 Refunded Principal... 7.556%
Net PV Benefit/$2,560,000 Refunding Principal.. 7.084%
Refunding Bond Information
Refunding Dated Date 9/012012
Refunding Delivery Date 9/012012
•
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0 EHLERS
LEADERS IN PUBLIC FINANCE Page 4
II
City of Richfield
$2,560,000 Taxable G.O. Refunding Bonds, Dated: September 1, 2012
Proposed Advance Refunding of Taxable G.O. TIF Bonds, Series 2003C
Current"AA"Taxable Rates
Crossover Escrow Fund Cashflow
Date Principal Rate Interest Receipts Disbursements Cash Balance
09/01/2012 - - - 0.15 - 0.15
02/01/2013 24,276.00 0.140% 2,337.10 26,613.10 26,612.50 0.75
08/01/2013 29,088.00 0.200% 2,846.74 31,934.74 31,935.00 0.49
02/01/2014 2,429,141.00 0.230% 2,793.51 2,431,934.51 2,431,935.00 -
Total $2,482,505.00 - $7,97735 $2,490,48250 $2,490,482.50 -
Investment Parameters
Investment Model[PV,GIC,or Securities] Securities
Default investment yield target Bond Yield
Cash Deposit 0.15
Cost of Investments Purchased with Bond Proceeds 2,482,505.00
Total Cost of Investments $2,482,505.15
Target Cost of Investments at bond yield $2,395,209.98
Actual positive or(negative)arbitrage (87,295.17)
Yield to Receipt 0.2293670%
Yield for Arbitrage Purposes 2.8068630%
State and Local Government Series(SLGS)rates for 6/272012
10 xover Ser 03C$3.47M T 110 xover Ser 03C$3.47M T 6/28/2012 I 2:30 PM
EHLERS
LEABERS IN PUBLIC FINANCE Page 5
AGENDA SECTION: CONSENT
AGENDA ITEM# 3D
REPORT# 130
STAFF REPORT
RICHFIELD
CITY COUNCIL MEETING
JULY 24, 2012
KAREN BARTON, COMMUNITY
REPORT PREPARED BY: DEVELOPMENT ASSISTANT
DIRECTOR j
NAME,TITLE
DEPARTMENT DIRECTOR
E31
REVIEW: /L •
rir e
REVIEWED BY CITY 1
MANAGER: / it
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a resolution authorizing the submittal of a grant application to the Minnesota
Department of Employment and Economic Development (DEED) for pedestrian access
improvements in the Lakes at Lyndale area.
I. RECOMMENDED ACTION:
By Motion: Adopt the attached resolution authorizing the submittal of
a grant application to the Minnesota Department of Employment and
Economic Development (DEED) for pedestrian access improvements
in the Lakes at Lyndale area.
II. BACKGROUND
The Minnesota Department of Employment and Economic Development (DEED) is
currently accepting Redevelopment Grant applications from local governments to
induce private development.
The program is funded with $3 million and can include eligible private and public
redevelopment costs. The applicant is required to pay for at least 50% of the
eligible costs; however, the matching funds can come from private development
associated with the project. The adjacent property developers (Michael
Development and Lyndale Gardens LLC) have agreed to provide these matching
funds.
07242012 Resolution authorizing DEED Grant Application
Eligible grant-funded activities include acquisition, demolition, interior abatement,
infrastructure improvements (i.e., water and sewer, sidewalks, lights, roads, etc.),
ponding, and environmental infrastructure.
Given the current development of the 94-unit Lyndale Plaza Apartments (6401
Lyndale Avenue) and the pending redevelopment of the former Lyndale Garden
Center site (6400 Lyndale Avenue), staff has determined that improved pedestrian
accessibility and safety at 64th Street and Lyndale Avenue is a priority. The
proposed improvements would include improved pedestrian crossings, sidewalks,
and lighting.
Grant applications must be submitted by August 1, 2012 and must include a
resolution from the City authorizing and supporting the submission.
III. BASIS OF RECOMMENDATION
A. POLICY
• It is prudent to seek outside funding whenever practical.
B. CRITICAL TIMING ISSUES
• The grant application is due August 1, 2012.
• City resolution authorizing the application must be submitted with the
application.
C. FINANCIAL
• A local match of 50% is required. Michael Development and Lyndale
Gardens LLC have pledged this match.
D. LEGAL
• The program guidelines for this grant require the City Council to pass
a resolution in support of the application.
E. ENVIRONMENTAL CONSIDERATIONS
• N/A
IV. ALTERNATIVE RECOMMENDATION(S)
• Do not adopt resolution.
V. ATTACHMENTS
• Resolution
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
3J- 1
RESOLUTION NO.
RESOLUTION AFFIRMING AND RATIFYING CITY'S STAFF SUBMITTAL OF
AN APPLICATION AND COMMITTING LOCAL MATCH AND AUTHORIZING
CONTRACT SIGNATURE TO THE MINNESOTA DEPARTMENT OF EMPLOYMENT
AND ECONOMIC DEVELOPMENT (DEED) FOR REDEVELOPMENT GRANT FUNDS
FOR THE LAKES AT LYNDALE AREA AT 64TH STREET AND LYNDALE AVENUE
WHEREAS, the City of Richfield (the "City") is a city located within Hennepin
County and is therefore eligible to access the Redevelopment Grant Fund; 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, BE IT RESOLVED, that the City of Richfield act as the legal sponsor for the
project contained in the Contamination Cleanup Grant Program submitted on August 1,
2012 and that the City Manager is hereby authorized to apply to the Department of
Employment and Economic Development for funding of this project on behalf of the City of
Richfield; and
BE IT FURTHER RESOLVED, that the City of Richfield has the legal authority to
apply for financial assistance, and the institutional, managerial, and financial capability to
ensure adequate project administration; and
BE IT FURTHER RESOLVED, that the sources and amounts of the local match
identified in the application are committed to the project identified; and
BE IT FURTHER RESOLVED, that the City of Richfield has not violated any
Federal, State or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict
of interest or other unlawful or corrupt practice, and
BE IT FURTHER RESOLVED, that upon approval of its application by the State,
the City of Richfield may enter into an agreement with the State of Minnesota for the
above-referenced project(s), and that the City of Richfield certifies that it will comply with
all applicable laws and regulation as stated in all contract agreements; and
NOW, THEREFORE BE IT FINALLY RESOLVED, that the City Manager is hereby
authorized to execute such agreements as are necessary to implement the project on
behalf of the applicant.
Adopted by the City Council of the City of Richfield, Minnesota this 24th day of July,
2012.
Debbie Goettel, Mayor
ATTEST:
Nancy Gibbs, City Clerk
AGENDA SECTION: CONSENT
AGENDA ITEM# 3E
REPORT# 131
A*,
STAFF REPORT
RICI Irl.u, CITY COUNCIL MEETING
JULY 24, 2012
JIM TOPITZHOFER,RECREATION SERVICES
REPORT PREPARED BY: DIRECTOR
NAME,TITLE
DEPARTMENT DIRECTOR REVIEW: Ei
AN
/
Uf
� "�/ =ice
REVIEWED BY CITY MANAGER: �
ITEM FOR COUNCIL CONSIDERATION:
Consideration of award of contract to Metro Elevator, Inc. to perform repairs to the existing
elevator located at the Richfield Community Center in the amount of$35,335 as required by
State code.
I. RECOMMENDED ACTION:
By Motion: Approve the award of contract to Metro Elevator, Inc. to
perform repairs to the existing elevator located at the Richfield
Community Center in the amount of$35,335 as required by State
code.
II. BACKGROUND
The Community Center Elevator has been out of service since May 25. Metro
Elevator suspended repairs shortly afterward when they discovered a faulty control
board caused by water damage. The control board is obsolete which triggered an
inspection by the State.
The elevator and circuit board is original equipment and was installed 33 years ago
as an addition to the Community Center when the City took possession of the
building from the County. State code pertaining to elevators has changed
significantly since the elevator was installed. Now that a new control board is
necessary, State code required a renovation of the entire elevator including the
following to be furnished and installed:
0724CommunityCenterElevatorContract
• Car travel lantern with directional arrows
• ADA compliant hand-set phone
• Numbers on backside of entrance doors
• Emergency signage
• Instructions in Braille
• Hydraulic control system
• Battery lowering system
• Solid state motor starter assembly
• All electrical wiring
• Pit stop switch and other electrical components
Three quotes were received for the above work, with the lowest quote offered by
Metro Elevator in the amount of$35,335.
In addition to the above work, a dedicated air conditioning unit (HVAC) is required
for the elevator pit which will be installed by a separate company. Midwest Elevator
offered the lowest quote on this work in the amount of$15,317.
III. BASIS OF RECOMMENDATION
A. POLICY
• Under the City's Purchasing and Spending Authority Policy, contracts
or purchase from $25,000 to $100,000 must be approved by the City
Council.
• If the amount of the contract is estimated at$100,000 or less, the
contact or purchase may be made either upon quotation or in the open
market in the discretion of the governing body. If the contract or
purchase is made upon quotation, it shall be based on at least two
quotations. Three quotes were received and Metro Elevator offered
the lowest price.
• There are no publication or notification requirements that apply to this
action.
B. CRITICAL TIMING ISSUES
• The elevator is essential to the operation of the Community Center
and is used on a regular basis by persons with mobility challenges.
Renovation of the elevator should be accomplished before September
1 when Fall programming is in full swing.
C. FINANCIAL
• Funding for the renovation of the elevator will come from a residual
balance of Special Revenue funds approved through the Capital
Improvement Budget and Transitory Ordinance process for the
purpose of park and recreation related projects. The residual balance
is an outcome of prior year budgeted project costs being less than
originally budgeted.
• Quotes were received from the following companies:
1. Metro Elevator $35,335*
2. All City Elevator $45,211
3. Otis Elevator $60,249
* lowest quote and recommended contract
• Other costs associated with this project which are not included in the
attached contract include the installation of a dedicated HVAC
system for the elevator in the amount of$15,317 and initial repairs to
the control board in the amount of$3,175.
D. LEGAL
• The City Attorney has reviewed the attached contract and will be
available for discussion at the meeting.
E. ENVIRONMENTAL CONSIDERATIONS
• None
IV. ALTERNATIVE RECOMMENDATION(S)
• Council may choose to direct staff to seek additional quotes on the required
elevator, or abandon the project. If the project is abandoned, the City will not
be able to operate the elevator at the Community Center.
V. ATTACHMENTS
• Contract with Metro Elevator, Inc. .
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
I
ELEVATOR,INC.
DATE: July 3,2012
SUBMITTED TO: Mr.Jim'Breviu
Richfield Community Center
7000 Nicollet Avenue South
Richfield,MN 55423
EQUIPMENT TO One Hydraulic.Passenger Elevator
BE COVERED:
LOCATION OF Richfield Community Center
EQUIPMENT: 7000 Nicollet Avenue South
Richfield,MN 55423
As you are aware,the main controller printed circuit board and a few of the controller components were
damaged by water,resulting in operational problems with the elevator.As you are also aware,we were
informed by the manufacturer of the controller,Virginia Controls,that they no longer carry replacement
boards or perform repairs to the boards for the controller installed at the Richfield Community Center.
As agreed to,Metro Elevator:sent the board to an electronics company specializing in the repair of existing
elevator printed circuit boards with the understanding that there was no guarantee in the outcome of the
repairs made to boards as the testing facility has no means to test the boards after the repairs have been
made.
As it turns out,the visual damage on the board was successfully repaired.However,after placing the
elevator back into operation,we observed other operational problems resulting from non-visual damage to
the board making it very difficult,if not impossible,to repair. We are therefore, recommending that the
complete obsolete control system and associated equipment be replaced.
Below is a listing of the work we are recommending for the elevator in order to properly restore operation
while reusing many of the other elevator system components.Please keep in mind that although the
materials that are being retained appear to be in fair operating condition,much of the equipment has
exceeded the average designed useful life of 20-25 years and consideration should be given for future
replacement of those materials.The work we are recommending is as follows:
1721 Mainstreet Hopkins, MN 55343 • p 952.932.9868•f 952.935.4985 •www.MetroElevatorinc.com
3 -a
CAR EQUIPMENT
Furnish and install a new-car travel lantern fixture with directional arrows and the 1-2 stroke feature
required by code.
Remove the existing hand-set phone and install an ADA compliant hands free telephone in the existing
telephone cabinet.
Test and repair existing emergency light unit,as required.
CARIROISTWAY DOOR EQUIPMENT
Furnish and install numbers on backside of the entrance doors and fascia,per coder
HOISTWAY EQUIPMENT
Furnish and install Appendix"0"emergency signage at each landing adjacent to hall station fixtures.
Furnish and install Braille on both sides of each entranceway frame at the required handicap height.
MACHINE ROOM EQUIPMENT
Furnish and install a new non-proprietary simplex,single automatic pushbutton collective solid state
hydraulic control system including battery lowering software and the necessary features required by code.
Remove the existing older style battery lowering device which is no longer working and replace with a
newer style battery lowering system.
Remove the existing mechanical starter and replace with a solid state motor starter assembly.
Furnish and install car wining,machine room wiring,hoistway wiring, car top and bottom wiring and car
traveling cable.
Perform a full load safety test and complete safety test report.
Install code data tag,per code.
PIT EQUIPMENT
Furnish and install pit stop switch.
Furnish and install a code compliant ladder in.the elevator pit.
CAR TOP EQUIPMENT
Furnish and install cross head data tag.
Furnish and install car top inspection station equipped with the required features,including GFCI outlet
and car top light,with guard.
Furnish and install hoistway selector package,including limit switches,leveling switches,door zone
switches,directional switches,vanes and related hardware.
Innstall electrical switch on existing car top emergency exit.
CAR BOTTOM EQUIPMENT
Furnish and install a code compliant platform toe guard assembly..
PRICING FOR ELEVATOR WORK DESCRIBEDABOVE
All work listed above will be performed for the sum of Thirty-Five-Thousand,Three Hundred Thirty-Five
and NO/100($35,335.00).
Our price includes a 12-month of warranty on those materials installed under this partial upgrade.
The above-quoted price does not include associated building work that will be required as part of this
project.
All work is to be performed during regular working hours of the elevator trade.
PAYMENT TERMS FOR ELEVATOR WORK
Payment terms are as follows: If the price exceeds$2,000.00 a down payment of 20%of price shall
be paid 12-weeks prior to the start of project,25%due upon delivery of materials and start of project.Full
payment shall be made on completion of the work if the work is completed within a thirty day period. If
the work is not completed within a thirty day period,monthly progress payments shall be made based on
the value of any materials ready or delivered,if any,and labor performed through the end of the month.
Payments not received within thirty days of the date of the invoice shall be subject to interest accrued at
the rate of 18%per year or at the maximum rate allowed by law,whichever is less; We shall also be
entitled to reimbursement from you of the expenses,including attorney's fees, incurred in collecting any
overdue payments.
It is understood this Repair Order is submitted for acceptance within 30 days from date executed by us.
Your acceptance of this Repair Order and its approval by an executive officer of Metro Elevator,Inc.will
constitute exclusively and entirely the agreement for the service herein described. No other changes in or
additions to this agreement will be recognized unless made in writing and properly executed by both
parties. This proposal is hereby accepted:
Management Company
-4tif _...040111111
Olt*4Af
Management Representative 'a a 41
Modernization Sales Specialist
Title Title
July 3.2012_
Date Date
AGENDA SECTION: CONSENT
AGENDA ITEM# 3F
REPORT# 132
STAFF REPORT
RICHFIELD CITY COUNCIL MEETING
JULY 24, 2012
REPORT PREPARED BY: JIM TOPITZHOFER,RECREATION SERVICES
DIRECTOR
NAME,TITLE
DEPARTMENT DIRECTOR REVIEW: 0 , /r_ / •
uf
REVIEWED BY CITY MANAGER: / ,,.,
ITEM FOR COUNCIL CONSIDERATION:
Consideration of award of contract to Midwest Elevator and Drilling to perform the installation
of an air conditioning unit to the existing elevator located at the Richfield Community Center in
the amount of$15,317 as required by State code.
I. RECOMMENDED ACTION:
By Motion: Approve the award of contract to Midwest Elevator and
Drilling to perform the installation of an air conditioning unit to the
existing elevator located at the Richfield Community Center in the
amount of $15,317 as required by State code.
II. BACKGROUND
The Community Center Elevator has been out of service since May 25. Metro
Elevator suspended repairs shortly afterward when they discovered a faulty control
board caused by water damage. The control board is obsolete which triggered an
inspection by the State.
The elevator and circuit board is original equipment and was installed 33 years ago
as an addition to the Community Center when the City took possession of the
building from the County. State code pertaining to elevators has changed
significantly since the elevator was installed. Now that a new control board is
necessary, State code required a renovation of the entire elevator including the
0724CommunItyCenterElevatorHVACcontract
installation of a dedicated air conditioning unit(HVAC), related clean-up costs and
electrical wiring.
Two quotes were received for the above work, with the lowest quote offered by
Midwest Elevator and Drilling in the amount of$15,317.
In addition to the above work, a dedicated air conditioning unit, the following
renovation work is also required for the elevator car and hydraulic system which will
be installed by a separate company:
• Car travel lantern with directional arrows
• ADA compliant hand-set phone
• Numbers on backside of entrance doors
• Emergency signage
• Instructions in Braille
• Hydraulic control system
• Battery lowering system
• Solid state motor starter assembly
• All electrical wiring
• Pit stop switch and other electrical components
Metro Elevator offered the lowest quote on this work in the amount of$35,335.
III. BASIS OF RECOMMENDATION
A. POLICY
• Under the City's Purchasing and Spending Authority Policy, contracts
or purchases from $1,000 to $25,000 must be approved by the
division manager, department director, finance director and the City
Manager.
• If the amount of the contract is estimated at$25,000 or less, the
contact or purchase may be made either upon quotation or in the open
market in the discretion of the governing body. If the contract or
purchase is made upon quotation, it shall be based on at least two
quotations. Two were received and Midwest Elevator and Drilling
offered the lowest price.
• There are no publication or notification requirements that apply to this
action.
B. CRITICAL TIMING ISSUES
• The elevator is essential to the operation of the Community Center
and is used on a regular basis by persons with mobility challenges.
Renovation of the elevator should be accomplished before September
1 when Fall programming is in full swing.
C. FINANCIAL
• Funding for the renovation of the elevator will come from a residual
balance of Special Revenue funds approved through the Capital
Improvement Budget and Transitory Ordinance process for the
purpose of park and recreation related projects. The residual balance
is an outcome of prior year budgeted project costs being less than
originally budgeted.
• Quotes were received from the following companies:
1. Midwest Elevator $15,317*
2. Ultimate Construction Services $15,724
* lowest quote and recommended contract
• Other costs associated with this project which are not included in the
attached contract include renovation work on the elevator car in the
amount of$35,335 and initial repairs to the control board in the
amount of$3,175.
D. ENVIRONMENTAL CONSIDERATIONS
• None.
E. LEGAL
• The City Attorney has reviewed the attached contract and will be
available for discussion at the meeting.
IV. ALTERNATIVE RECOMMENDATION(S)
• Council may choose to direct staff to seek additional quotes on the required
elevator, or abandon the project. If the project is abandoned, the City will not
be able to operate the elevator at the Community Center.
V. ATTACHMENTS
• Contract with Midwest Elevator and Drilling
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
3F- I
5680 County Rd 10 N ` P#952.928.4202
( DWEST+ELEVATQR
Wacon ia,MN 55387 " E fax 866-429.5049
DS�ILLYT+iG: "�
Elevator Modernization Related Work Quote
To: Jim @ Richfield Community Center
Date: 7.17.12
Quote: 20120244RW
Project : Richfield Community Center, 7000 Nicollet Ave, Richfield, MN
Description.: Related work for the modernization of one elevator with 2 stops.
Midwest will supply all labor, materials, equipment and General contracting for any
subcontractors needed to perform work related to mechanical, fire service or electrical
as needed for this quote.
We will use Local 9 union employees to perform all elevator related work.
Work to be performed is based on elevator contractor specifications
Hoistway/Pit
Patch holes and voids inside h.oistway
Tape all sheetrock as needed
Fire rating for fixture penetrations
Wire and install new GFI in pit on dedicated circuit
Wire and install new florescent light with guard
Move light switch, light or GFI
No hoistway vent is included
Machine room
Signage as needed
Door and hardware are acceptable for fire code
Patch all holes, cracks and penetrations
Install and wire a split AC unit that is thermostatically controlled
Condenser unit to be Inside building and within 30'
Wire temperature control
Install phone wire piping to new controller
connection and line service by others
Wire and Install GFI
Wire and Install new florescent lights with guards
Wire and install dedicated circuit for elevator machine room
Wire and install car light circuits with lockable disconnect
Bonded ground for elevator controller to primary building ground
Main line disconnect will meet code
Remove all non-elevator related electrical from machine room
** Any low voltage wire to be removed by others
** HP of new motor to remain the same. If different there will be an Increase In price
** Add$500 for battery lowering
1 of 2 bid Richfield Community Center RW.xlsx
3F- a
** Add$700 to clean and seal machine room walls
Lobbies
** Repair fixture openings to paint ready.status.
All cutting and patching work assumes that there is no lead paint present.
If lead paint is encountered there will be an increase in price
Smoke detection system
No fire or smoke systems is included in this bid
Subject to approval by Fire Marshall
No emergency power Is included in this bid
Elevator company to supply all car top time for this project at no cost to Midwest.
Midwest has calculated that our work within the hoistway will be about 4 hours.
These are hours we will be working in the hoistway,but not necessarily what we need for car top time.
The amount of car top time required will be based on the readiness of the elevator contractor to move the car
periodically,haul materials,spot the car as needed or run the car continually to accomplish our work
We would estimate car top time to be between 2 and 4 hours.
Each elevator contractor must determine car top time based on company policy,their willingness
to interrupt their elevator crews work schedule and industry standards.
Midwest is a licensed elevator contractor and can perform car top time.
if you choose to have Midwest perform all car top time, Add: $600.00
Elevator Contractor must allow Midwest's union employees time to run elevator for hoistway work
Midwest will perform all work described above for: $13,517.00
* ` Exceptions and alternates
Quote is good for 60 days from document date
Acceptance of quote requires 25% down, signature and P.O.
Percentage of work completed will be billed on a monthly basis
all work must be completed by 12/31/12
To accept this proposal sign, date&add a P0. A down payment invoice will be sent upon receipt
Thanks, Mark Stan:Bret
Signature Date
Company P.O Terms Net 30
2 of.2 bid Richfield Community Center RW.xisx
AGENDA SECTION: ORDINANCES
AGENDA ITEM# 5
REPORT# 133
,
STAFF REPORT
RICHFIELD
CITY COUNCIL MEETING
JULY 24, 2012
Imminkw
REPORT PREPARED BY: KRISTIN ASHER, CITY ENGINEER
NAME,TIRE
DEPARTMENT DIRECTOR
Er 4111"„
REVIEW:
REVIEWED BY CITY / r
MANAGER: ,�`; � �%ice __
_ ______
ITEM FOR COUNCIL CONSIDERATION:
Consideration of,second reading of an ordinance amendment related to the enforcement of
Minnehaha Creek Watershed District's Stormwater Management Rule.
I. RECOMMENDED ACTION:
By Motion:
1. Approve the second reading of an amended ordinance related to
Minnehaha Creek Watershed District's Stormwater Management
Rule.
2. Approve resolution for summary publication of an ordinance
amendment to Section 429.
II. BACKGROUND
Maintaining Regulatory Authority
Much of the eastern section of Richfield falls within the Minnehaha Creek
Watershed District (MCWD). The City has sole regulatory authority within city
boundaries with respect to MCWD's Erosion Control, Floodplain Alteration, Wetland
Protection and Stormwater Management Rules. In order to maintain regulatory
authority of the Stormwater Management Rule, the attached City Ordinance must
be adopted by the City Council.
Memorandum of Understanding
The MCWD rules apply to properties within the watershed district boundaries even
without the adoption of the proposed amendments. On July 14, 2009 the City
07242012StormOrdinance
Council approved a Memorandum of Understanding (MOU) between the MCWD
and the City allowing the City to maintain exercising sole regulatory authority within
City boundaries with respect to matters subject to regulation under MCWD's
Erosion Control, Floodplain Alteration, Wetland Protection and Stormwater
Management Rules. As part of the MOU agreement the City also agreed to update
the City Ordinances and Zoning Code to comply with the Districts rules.
Minnehaha Creek Watershed District's 2011 Rule
The proposed code amendments support the following 2011 MCWD regulation
changes within the area of MCWD's jurisdiction:
• Required management activities are based on size and disturbance area
(previously size and type of project)
• Takes into count changes in impervious cover
• Built upon non-degradation for phosphorus
• Has added a volume control component in certain cases
Subd. 5. Financial Assurance
Staff is recommending that the proposed Financial Assurance subdivision be
adopted citywide. The Financial Assurance subdivision allows the City to require a
performance bond, letter of credit, or other financial assurance for any project that
requires installation of a stormwater best management practice in order to assure
proper construction and maintenance will be completed as part of the project.
III. BASIS OF RECOMMENDATION
A. POLICY
• The proposed ordinance amendments are consistent with the
Memorandum of Understanding between the City of Richfield and
MCWD.
B. CRITICAL TIMING ISSUES
• In accordance with the MOU approved in 2009, the City agreed to
amend and/or adopt ordinances to be consistent with the MCWD
Rules within 180 days of adoption by the District..
C. FINANCIAL
• N/A
D. LEGAL
• The proposed ordinance amendments were prepared by the City
Attorney.
E. ENVIRONMENTAL CONSIDERATIONS
• The MCWD strives to protect, improve and manage surface waters
and affiliated ground water resources within the District. The
proposed ordinance amendments support this mission.
IV. ALTERNATIVE RECOMMENDATION(S)
• The Council may choose not to approve the second reading of the amended
ordinance and direct staff on how to proceed.
V. ATTACHMENTS
• Proposed Amendment to Water Resource Management Ordinance
Subsection 429.05.
• Resolution for Summary Publication
• Watershed District Map
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None anticipated.
5- I
CITY OF RICHFIELD
ORDINANCE NO.
AN ORDINANCE RELATING TO WATER RESOURCE
MANAGEMENT; AMENDING SUBSECTION 429.05
OF THE RICHFIELD CITY CODE
THE CITY OF RICHFIELD DOES ORDAIN:
Section 1. Subsection 429.05 of the Richfield City Code is amended as
follows:
429.05. Stormwater Management for Land Altering Activities. Subdivision 1.
Administration. The city council hereby designates the Director of Public Works
as the administrator of this section.
Subd. 2. Application. Stormwater management plans shall be reviewed
and approved under the existing building permit review process. The applicant
must include the requirements of this section in the plans submitted as part of the
building permit review.
Subd. 3. Activities Subject to Stormwater Management Regulations
Outside of the Minnehaha Creek Watershed District. The following table I
outlines those activities that require no permit and those activities that require
permits for stormwater management as outlined in the city's comprehensive
surface water management plan for various development and redevelopment
activities outside of the Minnehaha Creek Watershed District:
Table I
Requirements
No permit BMPs Water Water
Project quantity quality
control control
a) Single-family home X
construction
b) Construction on less X
than 2 acres w/density
of less than or equal to 2
acres
c) Residential subdivision X
between 2 and 8 acres
d) Residential subdivision X X
between 8 and 20 acres
400631v1 CLL RC145-364 1
Requirements
No permit BMPs Water Water
Project quantity quality
control control
e) Residential subdivision X X X
greater than or equal to
20 acres
f) Multi-unit residential X
development w/ less
than 8 units/acre
g) Multi-unit residential X
development greater
than 2 acres and less
than 5 acres
h) Multi-unit residential X X
development greater
than or equal to 5 acres
and less than 8 acres
i) Multi-unit residential X X X
development greater
than 8 acres
j) Commercial, industrial, X
institutional, or mixed
use development of less
than %2 acre
k) Commercial, industrial, X X
institutional, or mixed
use development of
greater than '/ acre and
less than 8 acres
I) Commercial, industrial, X X X
institutional, or mixed
use development of
greater than 8 acres
m) Maintenance, X
improvement, or
construction of public or
private road, street,
highway, sidewalk, trail,
other linear project or
parking lot that does not
result in net increase in
impervious surface
400631v1 CLL RC145-364 2
Requirements
No permit BMPs Water Water
Project quantity quality
control control
n) Maintenance, X
improvement, or
construction of public or
private road, street,
highway, sidewalk, trail,
other linear project or
parking lot that results in
net increase in
impervious surface of
less than 1 acre
o) Maintenance, X X
improvement, or
construction of public or
private road, street,
highway, sidewalk, trail,
other linear project or
parking lot that results in
net increase in
impervious surface of
greater than 1 acre and
the project area is less
than 5 acres
p) Maintenance, X X X
improvement, or
construction of public or
private road, street,
highway, sidewalk, trail,
other linear project or
parking lot that results in
net increase in
impervious surface of
greater than 1 acre and
the project area is more
than 5 acres
a. Stormwater runoff discharge rates may not exceed the existing
conditions for the 1-, 10-, and 100-year storm events. If the
increase in imperviousness is 50% or greater, the discharge rate
requirements must be based on pre-development conditions.
400631v1 CLL RC145-364 3
b. Stormwater runoff to a landlocked area that cannot handle the
increased runoff must maintain runoff volumes to the existing
conditions.
c. Water quality control facilities must remove 50% of the
phosphorous on an annual average removal basis.
d. Stormwater ponds must have a 10-foot, 10:1 bench, two feet of
freeboard, and must remove floatables from a 1-year event.
e. Sidewalks and trails that do not exceed 10 feet in width and are
bordered by a pervious buffer of at least 5 feet on each side are not
included in calculations for net increase in impervious surface.
f. Water quality and quantity provision requirements may be waived
by the administrator if a downstream facility is in place or will be
constructed and the facility is designed to accommodate the
stormwater runoff from the project.
g. The requirements of this ordinance may be waived by the
administrator or board of adjustments and appeals if it is
determined that meeting the requirements of this subsection on site
is not feasible.
Subd. 4. Stormwater Management Regulations in the Minnehaha Creek
Watershed District ("MCWD"). In the area of the jurisdiction of the Minnehaha
Creek Watershed District. no one may create new or replace existing pervious
surface or chan•e the contours of a •arcel of land in a wa that affects the
direction_•eak rate volume or water •uali of runoff flows from the •arcel or
subdivide a parcel of one acre or more in size into three or more lots without first
submitting a stormwater management plan to the city Director of Public Works
and securing a permit from the city approving the plan.
a. New development. redevelopment, subdivision of land and linear
transportation projects must comply with ap•licable re•uirements of
the MCWD Stormwater Management Rule.
b. Activities that are exempt from the MCWD Stormwater
Management Rule are exempt from this section.
c. An a• •licant must meet the re•uirements of and •rovide a
stormwater management plan that includes all information required
by. the MCWD Stormwater Management Rule unless otherwise
directed by the Director of Public Works.
•
400631v1 CLL RC145-364 4
Subd. 5. Financial Assurance. The city may require a performance bond,
letter of credit or other financial assurance for any project that requires
installation of stormwater best management practices. The financial assurance
shall be maintained until the stormwater best management practice has been
constructed and stabilized.
Subd. 6. Compliance with Plan and Maintenance of Facilities.
a. Projects shall be constructed and maintained in accordance with
the approved stormwater management plan and any conditions
imposed by the city.
b. All stormwater management structures and facilities must be
designed for maintenance access and proberl maintained in
perpetuity to assure that they continue to function as designed.
Permit applicants must provide a maintenance plan that identifies
and protects the design. capacity and functionality of onsite and
offsite stormwater management facilities: specifies the methods.
schedule and responsible parties for maintenance; provides for the
maintenance in perpetuity of the facility; and contains a satisfactory
maintenance declaration.
Subd. 47. Construction Standards. The design and construction criteria for
stormwater management plans outlined in the city's surface water management
plan and the MPCA "Protection Water Quality in Urban Areas" shall be utilized as
the construction standards for these regulations. These criteria are on file in the
city engineering office.
Section 2. This ordinance is effective in accordance with section 3.09 of
the Richfield City Charter.
Debbie Goettel, Mayor
ATTEST:
Nancy Gibbs, City Clerk
400631v1 CLL RC145-364 5
RESOLUTION NO.
RESOLUTION APPROVING SUMMARY PUBLICATION OF AN ORDINANCE
AMENDMENT TO SECTION 429 OF THE RICHFIELD CITY CODE
WHICH PERTAINS TO STORMWATER MANAGEMENT REGULATIONS
WHEREAS, the City has adopted the above referenced amendment to the Richfield
City Code; and
WHEREAS, the verbatim text of the amendment is cumbersome, and the expense
of publication of the complete text is not justified.
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. 2012
AN ORDINANCE RELATING TO STORMWATER MANAGEMENT REGULATIONS;
AMENDING SUBSECTIONS 429.05 OF THE RICHFIELD CITY CODE.
This summary of the ordinance is published pursuant to Section 3.12 of the
Richfield City Charter.
The purpose of this ordinance is to amend City Code to provide stormwater
management guidance related to land disturbing activities consistent with the Minnehaha
Creek Watershed District rules. The code amendments support water quality protection
requirements related to land disturbing activities of at least one acre in size within the
Minnehaha Creek Watershed District. The amendment also includes a citywide
subdivision requiring financial assurance for any project that requires a best management
practice to be completed.
Copies of the ordinance are available for public inspection in the Public Works
Department during normal business hours or upon request by calling Kristin Asher at 612-
861-9795.
Adopted by the City Council of the City of Richfield, Minnesota this 24th day of July,
2012.
Debbie Goettel, Mayor
ATTEST:
Nancy Gibbs, City Clerk
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AGENDA SECTION: RESOLUTIONS
AGENDA ITEM# 6
REPORT# 134
STAFF REPORT
RICHFIELD CITY COUNCIL MEETING
JULY 24, 2012
REPORT PREPARED BY: BETSY OSBORN, SUPPORT
SERVICES MANAGER
NAarE TITLE
DEPARTMENT DIRECTOR
REVIEW: ,/
A r_
REVIEWED BY CITY
V,
_ �[ _
MANAGER: / �
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a disciplinary hearing and resolution regarding civil enforcement for several
alcohol establishments in Richfield that recently underwent alcohol compliance checks
conducted by Richfield Public Safety staff, and failed by selling alcohol to underage youth.
I. RECOMMENDED ACTION:
By Motion: Conduct a disciplinary hearing for the licensed
establishments who failed an alcohol compliance check and
approve the attached resolution for first time violating
establishments:
• Suspending the license to sell alcohol for five (5) consecutive days,
and;
• Levying a fine against the establishments in the amount of $1000 and;
• Requiring a meeting with the Public Safety Director to present an
individual establishment plan to ensure eliminating any future actions
of this kind, and;
• Requiring a manager to attend an alcohol compliance and sales
awareness presentation conducted by a private firm, approved by
Public Safety with all costs to be paid by the establishment.
07/24/12ALCOHOL
II. BACKGROUND
On June 9, 2012, Richfield Public Safety staff conducted alcohol compliance checks
at all of the establishment's in Richfield that sell alcohol. They were assisted by
three underage youth that were all 19 years of age. These compliance checks were
the first compliance checks conducted in 2012.
The businesses that sold alcohol to underage youth on June 9, 2012 are:
• El Jalapeno Market— 1430 East 66th Street
• Patrick's French Bakery—2928 West 66th Street
• Super America —7500 Lyndale Avenue South
III. BASIS OF RECOMMENDATION
A. POLICY
■ It is a violation of Minnesota State Statute and City ordinance to sell
alcohol to underage youth.
• Resolution 9511 specifies certain improper conduct of alcohol license
holders and delineates the progressive discipline that can be expected
when violations occur, such as the sale of alcohol to minors.
B. CRITICAL TIMING ISSUES
• Staff recommends that the City Council suspend the license to sell
alcohol for five (5) consecutive days and levy a fine against the
establishments in the amount of$1,000 for the first violation. Staff is also
proposing that the first time violating establishments attend a mandatory
meeting with the Public Safety Director to present their individual
establishment's plan to ensure eliminating any future actions of this kind.
In addition, one staff member, preferably the manager, must attend an
alcohol compliance and sales awareness presentation conducted by a
private firm, approved by Public Safety, with all costs to be paid by the
establishment. These requirements must be met by August 24, 2012.
C. FINANCIAL
• The fine being recommended at this time is intended to recover 100%
of the costs for conducting the compliance checks and to penalize the
businesses punitively. Compliance checks will continue to occur in
the future.
D. LEGAL
• N/A
E. ENVIRONMENTAL CONSIDERATIONS
• N/A
N. ALTERNATIVE RECOMMENDATIONS)
• The Council may consider taking more or less severe action against the
establishments that sold alcohol to underage youth; however, that would
deviate from the guidelines set for progressive discipline in
Resolution No. 9511.
V. ATTACHMENTS
• Resolution for El Jalapeno Market.
• Resolution for Patrick's French Bakery.
• Resolution for Super America.
• Summary information for alcohol compliance failures.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• A representative from the establishments is expected to be in attendance at
the City Council meeting and have been notified in writing regarding the
meeting date.
RESOLUTION NO.
RESOLUTION SUSPENDING THE OFF-SALE 3.2 MALT LIQUOR LICENSE FOR EL
JALAPENO MARKET, 1430 EAST 66TH STREET, AND IMPOSING A CIVIL PENALTY
FOR FIRST TIME ALCOHOL COMPLIANCE FAILURE
WHEREAS, El Jalapeno Market ("Licensee") holds an Off-Sale 3.2 Malt Liquor
License from the City of Richfield; and
WHEREAS, on June 9, 2012 the City of Richfield Public Safety Department
conducted a compliance check of the Licensee's establishment; and, during the
compliance check, an employee of the Licensee sold alcohol to a minor and;
WHEREAS, this is their first alcohol compliance check failure and;
WHEREAS, the Licensee appeared before the Richfield City Council on July 24,
2012 and admitted the violation and stipulated to the penalty imposed by this resolution.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield
as follows:
1. The Licensee's Off-Sale 3.2 Malt Liquor License are hereby suspended for a period of
five (5) consecutive days, commencing on a date to be determined by the Public Safety
Director, but to take place within 30 days after their Council appearance.
2. A civil penalty of$1,000 is hereby imposed. On or before August 24, 2012, the
Licensee shall deliver a check or money order payable to the City of Richfield in the
amount of$1;000.
3. Meet with the Director of Public Safety by August 24, 2012 to present a written action
plan to ensure future compliance.
4. One staff member, preferably the manager, must attend an alcohol compliance and
sales awareness presentation conducted by a private firm, approved by Public Safety,
with all costs to be paid by the establishment.
Passed by the City Council of the City of Richfield this 24th day of July 2012.
Debbie Goettel, Mayor
ATTEST:
Nancy Gibbs, City Clerk
X
RESOLUTION NO.
RESOLUTION SUSPENDING THE ON-SALE WINE AND 3.2 PERCENT MALT LIQUOR
LICENSE FOR PATRICK'S FRENCH BAKERY, 2928 WEST 66TH STREET, AND
IMPOSING A CIVIL PENALTY FOR FIRST TIME ALCOHOL COMPLIANCE FAILURE
WHEREAS, Patrick's French Bakery ("Licensee") holds an On-Sale Wine and 3.2
Percent Malt Liquor License from the City of Richfield; and
WHEREAS, on June 9, 2012 the City of Richfield Public Safety Department
conducted a compliance check of the Licensee's establishment; and, during the
compliance check, an employee of the Licensee sold alcohol to a minor and;
WHEREAS, this is their first alcohol compliance check failure and;
WHEREAS, the Licensee appeared before the Richfield City Council on July 24,
2012 and admitted the violation and stipulated to the penalty imposed by this resolution.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield
as follows:
1. The Licensee's On-Sale Wine and 3.2 Percent Malt Liquor License are hereby
suspended for a period of five (5) consecutive days, commencing on a date to be
determined by the Public Safety Director, but to take place within 30 days after their
Council appearance.
2. A civil penalty of$1,000 is hereby imposed. On or before August 24, 2012, the
Licensee shall deliver a check or money order payable to the City of Richfield in the
amount of$1,000.
3. Meet with the Director of Public Safety by August 24, 2012 to present a written
action plan to ensure future compliance.
4. One staff member, preferably the manager, must attend an alcohol compliance and
sales awareness presentation conducted by a private firm, approved by Public
Safety, with all costs to be paid by the establishment.
Passed by the City Council of the City of Richfield this 24th day of July, 2012.
Debbie Goettel, Mayor
ATTEST:
Nancy Gibbs, City Clerk
Lo -3
RESOLUTION NO.
RESOLUTION SUSPENDING THE OFF-SALE 3.2 MALT LIQUOR LICENSE FOR
SUPER AMERICA, 7500 LYNDALE AVEUE SOUTH, AND IMPOSING A CIVIL
PENALTY FOR FIRST TIME ALCOHOL COMPLIANCE FAILURE
WHEREAS, Super America ("Licensee") holds an Off-Sale 3.2 Malt Liquor License
from the City of Richfield; and
WHEREAS, on June 9, 2012 the City of Richfield Public Safety Department
conducted a compliance check of the Licensee's establishment; and, during the
compliance check, an employee of the Licensee sold alcohol to a minor and;
WHEREAS, this is their first alcohol compliance check failure and;
WHEREAS, the Licensee appeared before the Richfield City Council on July 24,
2012 and admitted the violation and stipulated to the penalty imposed by this resolution.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield
as follows:
1. The Licensee's Off-Sale 3.2 Malt Liquor License are hereby suspended for a period
of five (5) consecutive days, commencing on a date to be determined by the Public
Safety Director, but to take place within 30 days after their Council appearance.
2. A civil penalty of$1,000 is hereby imposed. On or before August 24, 2012, the.
Licensee shall deliver a check or money order payable to the City of Richfield in the
amount of$1,000.
3. Meet with the Director of Public Safety by August 24, 2012 to present a written
action plan to ensure future compliance.
4. One staff member, preferably the manager, must attend an alcohol compliance and
sales awareness presentation conducted by a private firm, approved by Public
Safety, with all costs to be paid by the establishment.
Passed by the City Council of the City of Richfield this 24th day of July, 2012.
Debbie Goettel, Mayor
ATTEST:
Nancy Gibbs, City Clerk
SUMMARY INFORMATION FOR DISCIPLANARY HEARING FOR
FAILED ALCOHOL COMPLIANCE CHECKS
• Richfield Public Safety staff made arrangements for the minor to enter the
establishments with undercover police officers. In three instances, an underage
youth was served alcohol. In two instances identification was asked for and shown.
In one instance it was not shown.
• This is the first offense for El Jalapeno Market, Patrick's French Bakery and Super
America. Their license will be suspended for five (5) consecutive days and they will
be fined $1,000 for the first violation.
• At no time did the minors consume any of the alcohol. The youth presented their ID
and at no time attempted to convince anyone that they were of legal age.
Establishments were visited at a variety of times, busy or not busy, in an effort to
determine if busy times produced more successful buys. It doesn't appear to have
made a difference at either time.
• After each attempt, successful or unsuccessful, the officers identified themselves to
the server and issued them a citation if they failed. If the underage youth was
unsuccessful in securing alcohol, the clerk was congratulated by officers for doing a
good job. The employee that sold alcohol will be charged criminally in court. The
action being taken today is for civil enforcement and penalties against the business
that holds a license to sell alcohol within the City.
• Civil enforcement penalties taken in the past by the City Council against several
establishments have been severe. This was done to send a message to the
establishments and the community that the Council will not tolerate this type of
violation to continue in the community and that Richfield youth and their well-being
are highly valued.
• Citizen representatives of the Richfield Advisory Board of Health support severe
actions against establishments in an effort to protect the youth of the community
and to send a message that youth and their well-being are a high priority in this City.
• All costs of conducting compliance checks will be reimbursed through the fines that
are levied against an establishment for failing an alcohol compliance check.
to—
Executive Summary for Alcohol Compliance
Failures for June 9, 2012
Failed Business: El Jalapeno, 1430 E. 66th St.
This is the first offense for El Jalapeno. Technically, it is a fourth offense, however due to
the step back option (two consecutive compliance check passes) it is considered a first
offense. Previous failures occurred on November 18, 1999, July 14, 2001 and June 8
2004.
The server at El Jalapeno asked to see ID and ID was shown by the underage youth.
Failed Business: Patrick's French Bakery, 2928 W. 66th St.
This is the first offense for Patrick's French Bakery. Technically, it is considered a second
offense, however due to the step back option (two consecutive compliance check passes)
it is considered a first offense. A previous failure occurred on October 9, 2009. The server
asked for ID and ID was shown.
The server at Patrick's French Bakery asked to see ID and ID was shown by the underage
youth.
Failed Business: Super America, 7500 Lyndale Avenue South
This is the first offense for Super America. Technically, it is the third offense, however due
to the step back option (two consecutive compliance check passes) it is considered a first
offense. Previous failures occurred on November 18, 1999 and May 24, 2005 . The server
did not ask to see ID.
The server at Super American did not ask to see the ID of the underage youth and,
therefore the ID was not shown.