The URL can be used to link to this page

11-25-08 agenda• REGULAR CITY COUNCIL MEETING COUNCIL CHAMBERS 6700 PORTLAND AVENUE 7:00 P.M. AGENDA CITY OF RICHFIELD, MINNESOTA TUESDAY, NOVEMBER 25, 2008 INTRODUCTORY PROCEEDINGS C~ 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) Regular City Council Meeting of October 28, 2008 and (2) Regular City Council Meeting of November 10, 2008 PRESENTATION 1. Presentation of Certificate of Achievement for Financial Reporting to Richfield Finance Manager Chris Regis (Council Memo No. 194) COUNCIL DISCUSSION 2. Council discussion • Cancel Tuesday, December 23, 2008 Regular City Council Meeting • City Council/City staff goalsetting worksession • Hats Off To Hometown Hits Notes: AGENDA APPROVAL 3. Council approval of agenda CONSENT CALENDAR • 4. Consent Calendar contains several separate items, which are acted upon by the City Council in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further Council action is necessary.. However, any Council Member may request that an item be removed from the Consent Calendar and placed on the regular agenda for Council discussion and action. - All items listed on the Consent Calendar are recommended for approval. A. Consideration of approval of Master Grant Contract from State of Minnesota, Department of Health for 2009-2013 grant cycle designed to administratively simply review of grant agreements of localpublic health. agencies S.R. No. 272 B. Consideration of approval of continuation of agreement with City of Bloomington for provision of public health services for City of Richfield for 2009 S.R. No. 273 C. Consideration of approval of 2009 contract with City of Bloomington using federal grant funds to provide services of public health emergency preparedness/bioterrorism and development of response system S.R. No. 274 D. Consideration of approval of continuation of agreement with City of Bloomington for provision of food inspection services for Richfield for 2009 S.R. No. 275 E. Consideration of approval of accepting bid and awarding contract to K.A. Kamish Excavation for demolition of 6645-17th Avenue S.R. No. 276 F. Consideration of approval of 152 change orders less than $25,000 made during construction of new maintenance facility S.R. No. 277 G. Consideration of approval of agreement with Busch Architects for concept plans and cost estimates for renovation of Lincoln Athletic Complex in amount of $5,000 and .amount not to exceed $500 for reimbursable items S.R. No. 278 H. Consideration of approval of award. of contract to Murphy Granite, Inc. for ten granite tablets, installation and engraving services for Honoring All Veterans Memorial in amount of $40,870 plus sales tax S.R. No. 279 Notes: 5. Consideration of items, if any, removed from Consent Calendar Notes: PROPOSED ORDINANCE 6. Consideration of second reading of ordinance amendment to Richfield City Code Appendix D establishing fee schedule for certain permits and applications and resolution authorizing summary publication of ordinance Staff Report No. 280 • Notes: • RESOLUTIONS 7. Consideration of resolution awarding sale of $9,480,000 General Obligation Capital Improvement Bonds, Series 2008A Staff Report No. 281 Notes: 8. Consideration of resolution awarding sale of $515,000 General Obligation Capital Notes, Series 20086 Staff Report No. 282 Notes: OTHER BUSINESS 9. Consideration of authorizing City Manager to execute agreement with OrField • Laboratories, Inc. for certified building and performance standards and consulting for new Police/Fire/City Hall facility in amount not to exceed $147,500 (tabled from November 10, 2008) Staff Report No. 283 Notes: 10. Consideration of authorizing City Manager to execute agreement with WOLD Architects and Engineers for architectural services for construction of new Police/Fire/City Hall facility Staff Report No. 284 Notes: CITY MANAGER'S REPORT 11. City Manager's report • Minneapolis Currents of Change Notes: 12. 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: 13. Special City Council Closed Executive Session in Executive Conference Room regarding City Manager annual performance evaluation 14. Reconvene Regular City Council Meeting in Council Chambers RESOLUTION 15. Summary report of City Manager's annual performance evaluation and consideration of • resolution. adjusting City Manager compensation for 2009 Staff Report No. 285 Notes: 16.Adjournment of Regular City Council Meeting 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. • ~ .~ ~ ~ N ;~ i v O 0 V Z • L L O S ~N~U d L ~ N .d O N ~ ~ N ~ ~ ~~Z _ ~ Q ~ .~ M '~ ZOJ °o V R ° . ~ >> >> a O `` ~ ~ N c`1 in U '~ ~ Q O ~ ~ ~ m U w'N ~ L' ~ C •N J ,~ ~ ~ NO+>N c _ ?~ UC.~E O ! a'NU~ Z 'U N'~(~ Y N Q a~ ~ U ~ O p oU@~ ~ OU M~ ~ H= ~ ~Q ~ ~r a ~, `'~ ~ ~ N = `'Y' U ® N ,, ~ \U ~ .N ~ o ~~ ~ ~ E o -~ m ~ ~~, o '~ a E ~o ' > ~ N U .N O o I- .N _ _ ~EoU ~~ E ti a E - 0 U~ o v N ~ ~ ~ ~ o ~ r..~ N - ~ ~ C ~ ~ C . ~ ~ N ~ ~ O ~ ~ °p w~ tp O ~ ~ ~ W p ~ c ~~ U ~.Nv ~ U ~ ~ ~ ;~ ~~O U ~ ~ W ti '• ~ o ~~ D.. ~ ~'c U O N d N q N ~ - ~c N ~ ='a O(AU ~ O E N ~.~ ~~0~ W ~ ~ _ ~ N ~ ~ ~ O C N ~ Zo N~ 00 ~O= V oOCaN~ ~~ ~ ~v M c ,,R ~ N Mm~~ ~~ ~ ~ _ co ~ ~U O ~ ~ ~ ~ ~ ~ q U~ O ~ Q ~ 0 1 _ ~ > , ~ ~ ~ .~ v a i-Nm~ ~ a ° U n. i ° ~ a o ~ a~ U ° ~s o o, ~Y.~~, 0 ~ ~ ~ ~ ~ 2 ~ ~ 0~Uin ~ ~ ~ • ~' STAFF REPORT AGENDA SECTION: Consent AGENDA ITEM # 4A 1~L'.PORT.# 272 CITY COUNCIL MEETING NOVEMBER 25, 2008 REPORT PREPARED BY: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: BETSY OSBORN, SUPPORT SERVICES DIVISION MANAGER NAME, TITLE ITEM FOR COUNCIL CONSIDERATION: Consideration of a Master Grant Contract (MGC) from the State of Minnesota, Department of Health for the 2009-2013 grant cycle that is designed to administratively simplify the review of rant a reements of local public health a encies. RECOMMENDED ACTION: By Motion: Approve the .acceptance of a Master Grant Contract (MGC) from the State of Minnesota, Department of Health for the 2009-2013 grant cycle that is designed to administratively simplify the review of grant agreements of local public health agencies. • II. BACKGROUND The Minnesota Department of Health has, since the 2005-2008 grant funding cycle, requested approval from local public health agencies for one master grant contract rather than individual grant contracts for each of the various funding streams that public health agencies may apply for and receive funds. Since that time, the length of the grant funding cycle has changed from three years to five so this request for approval will cover the grant cycle for 2009-20.13. It should be noted that Health Administrator Betsy Osborn has authority, by resolution, to sign the agreement on behalf of the Board of Health but that it should also be approved by the City Council. , 1125 2009-2013 Master Grant Contract with MN Department of Health III. BASIS OF RECOMMENDATION A. POLICY - • Health Administrator Osborn has authority, by resolution, to sign the grant contract on behalf of the Board of Health but it should also be approved by the City Council B. CRITICAL ISSUES • None C. FINANCIAL • Failure to approve the master grant document would result in grant funding being held by the State until a contract is approved. D. LEGAL • The Minnesota Department of Health requires that an approved master grant contract be on file from each local public health agency receiving funds. E. ENVIRONMENTAL CONSIDERATIONS N/A IV. ALTERNATIVE RECOMMENDATION~S~ • The City Council could- decide not to approve the State's master grant document for grant funds received from 2009-2013 which would result in funds not being disbursed from the State to the City. V. ATTACHMENTS • 2009-2013 Master Grant Contract with Minnesota Department of Health VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None • Attachment to 1125 2009-2013 Master Grant with MN ~nr' Department of Health M i~ N e s o r a' MINNESOTA DEP`ART`MENT 'OF HEALTH I~ASTEJ€~. GR.AIrTT C(3NTRACT • a~PnRZnzeNZo~~EazrH F0~.2 COMMUNITY HEALTH BOARDS TITS FASTER URANT CONTI:ACT, and atnendmcnts and supplements thereto, is betz~veen the State of Mirznescta, acting through its Minnesota Departn:tent of He~ltlz (hereinafter "STA"I'E"} az~d City of Richfield ZI-IB, an independent organization, not an employee of the State of Minz~esata, address Richfield I lealtli Departrxzent, 6700 Portland Avenue So,, Richfield, 1VIN SS423 (Yzeren:after "GRANTEE"}, witnesseth that: WHEREAS; the STA"I'E, pursuant to Minnesota Stat~.tte §144.0742 is empowered to enter .innto a,contractual: agreement for t:he provision Ut statutorily prescribed public Health services; V~rFfLR1/AS, the STATE and the GIZAI~T:f/iJ artfcip<tte enteri»g into project agreertlents with respect to one or more individual grant projects; azad WItEREAS, the STATE anal the GIZnNTEI ; wish.. to streamline the project a~;ree7nents ftr individual grant; projects by incorporating by reference the provisioz~,s of this master grant contract.:. NC)~'J, TI-IEI~E;r'ORE, it is a~;r~:~d I. I`}~R.M OT AGRET;MrNT This master,grant contract shall be effective on .Iant;zary 1, 2(109, or upon the date that t11e final required signature is obtained by the STA T'I3, pursuant to Minnesota Statute. 160.05, Subdivision 2, vvhichever occuzs Inter, and shall rcznain in effect. until December 31; 20.13 • except .for the requirements specified in this master grant contract with cornpleti~~n dzites which extend beyt~nd the tertninatiori date specified ~-this sentence. The STATE will enter into project agreezr~ents 'with the GRANTEE for individual grant programs and. responsibilities wi'rhin this aforementioned. tii~le: kratne. The expiration oil thus master grant contractis not subjectto_ aplacal.'°l'he following clauses survive the expiration or eanccll.ation of this master gram contract: VI. iliabiiity; VIII. State Audits- VIII. Data Practices Ac:t; IX. Uwnersllip of 1~lateri.als and Iiltellcetual I7ropcrty Fights, 3~. l'ublic:ity, XII. Antitrust, XIII..Iuri:sdiction and Venue, and XIV. Disputes. i~I. CnNDITIt)NS C)F PAYMEN I' 1111 services provided by GRAN:C'E`E .pursuant tt3 th:i5 grant contract. shall be pcrforn~cd to the satsfactit>n of the STATE.and in accord with all applicable federal, state, anti local laws; ordinances; rules'ancl. regulations. GRANTII? shall not receive payment for work: found by tiro STATT/ to be unsatisfactory, or perf~rtned in. violation of fcdcral,'statc or local.law, ordizaanee, rule or r~gulati.on. A. FEDERAL FUNDS:. When payments are to be made from federal funds obfaizlcd by the S"0'1111:, if-' at any tiznc such funds becc>nlo unavailable, this grant ct~ntrac;t shall be terminated. immediately upon written notice of such. facf by the 5fI'ATE to the GRAN"I'EE. Iza the event of such termin~jtion, CfIZANTII= si~~ill be entitled to payment, detettnined on a pro rata basis, for services satisfactorily performed. I3. S'LA'CE IUNllS: When payments are to be m~ide from: STATE funds, if at an~~ time these S'I'r~1TE `funds far this grant becorize unavailab.lc, this grant contract sha11 bc; tcrxxtinated inxn~ediately upon wCi tiers t~otiee cif such l;act by the "TATF, to the EfRANTEE. In the event of such. tcz-rrination,; {iR11NIE1 shall be; entitled to payment, eletermined on a, pro rata basis; .far services satisfactorily: performed. P~i<2ster C~aant Contract N 1 ~-700-OU08S1 F'a~U 7 bct++ccn rile Minnesota !fie{~artnaatt of I lea~ittl and City of Kicitfield C°Ht3 ol/2Q04 ~A ~~- lIl, CANCELLATION • A. If the GRANTEE fails to comply ~-iththe provisions of this master grant contract, the STA'T'E may terminate this itraaster -grant contract without prejudice to the right of the STATE to recover any rnaney pz'eviotisly paid. The terminative shah be effccti~~e five business days after the S"J~~'l°E mails,. by certified mail, r-ettzrn receipt requested, written tlotice of termination to the GRr1NTEE yet its last lnowrz address. B, The STATE or G~2.ANTEE may cazicel this master rant contract.>at azry tune, with or without cause., upan thirty (30} days' written notice tv the other party. TV. 1~SSIGNMENT GRANTEE shall not assign, transfer, or subcontract any rights or obligations under this grant contract. without-the prior written cans~ent of the STATF,. The CI RANTEE is responsible for holding any subcontracting entities to the'samc standards reclui.red oi'the CiRAN'I'~f~. V. AIVIENDIvIENTS Any amezdzn.cnts to this grant contract shall be in writing, aild will not be effective until the amendment has been fully executed by the same parties who_executed fhe original oftlus grant: cvntract, or their successors in office. VI. LIAT3II.ITY C;IZI,NTEE shall indemnify, save, and .hold the STATE, its represexrtatives anl' ernplvyccs h~zrrntess t't-om any and ~rll claims or causes of action,.. including, r~;asonable attorney's lees incurrad'hy the.SIA.I`X:;, arising barn the performance of this grant contract by CIRANTEI; ar GRAN`TEE'S abezits or employees. This clause sha11 not be construed. to bar any legal remedies CrRAN"TEE 7~~ay have for the ~T'A.'I'E'S failure to fulfill its vbligations pursuant to this grant cviitraci- Nothing herein shall ~he construcdas a waiver by GRAN"1 I;l? of any of the iznantrziities ar limitations of Iiability to which GIU~.NTEE play he entitled pilrsuaet to lvlinnesota Statute, Chapter .466, ar purstlar~ tc~. ~<zny other statute ar law.. VII. STATI? AUDI"I'S 'I,he banks, records, docuin.ents, and accounting; pracedure;; a;nd pxauti:ccs czf the GRAN'.i'EE relevant to this grant c~z3tract shall. be n~aele a~~ailable to aed arc: subject tea e~aznirrativn by` the;.STA'T'F,, 'including the cantracting A~ency~`Division; Legislative Auditar, and State AuditUr for a zriinimuripcrivd of six years frvm-the end v1~ tl~c terzz.~ of this gzantcontraet. VIII. pATA PRACTICES SC'I' 'I'hc GRANTEE and the S'1'A"I'E shall comply with the Minnesota l.~ata,. Fractices ,4ctand atller applicable `laws as theyapply to all data p~•avided l~x~ the S I'~~1 l: in aecrfrclance with this grant contract and as they apply to all data created, gathered:; generated ar' acquired in aceardance with this grant contract. IX. Oti~~NEIZSI~IIP 0>4 MA: f [KZ.ALS .AND INTELLECTLTA7, PROPER TY R.1GT;I:I'S This clarisc lX shall not apply tc> any grant projects involving the Special Supl~lcznental Nutrition I'rogranl for Wonac:n, Infants and Children (~JTC Program). A. ] xcept as pravid.ed vthet-~iise in Minnesota or IJnitetl States law, the GRANTEE 5ha11 o~~m all rights, title: and intetc;st in all of tllc materials conc>ei`vcd or cxcated by the' CiRr1NTEl, r~r is entplc~yccs or suhgr~zntces, eithea• indi~-icic.cally yr jointly with others anci which anise: out ofthe performance of this ;graz-rt cantrac;t, iztcl:udizab aey :inventions, reports, studies, dcsigzzs, dra`~i~gs, speciCicatiozzs, rotes; • Plaster {;raC~t C~n:tract i! 1 Z-7~0-OU~3Q Pa_~c between t(ie Minn sofa Depa~~tment nl~ }3~eatdi anti t:it}-o'RiclaY~:~c3tlCi~1.~ O1J200~ 4A-3 documents, software and. clocuznentation; computer based traitzing modules,'elcetronically, magnetically or digitally recorded material, atld other~~~ark iza whatever form ("MATERIALS"}. • The STATE- agrees to, and hereby does; assign all rights, title aril interest it mGry have in the , MATERIALS to the GRANTEE.. The STA`T'E shall, upon request of t}ic GRANTEE, execute all. .papers and perti~rni all other acts necessary= to transfer yr record the GRAN'T'EE' S ownership interest in the MATERIALS, B. GRANTEE represents and warrants that 1VIATERIALS produced or used: under this grant contract do nvt and will not infringe upon any intellectual property rights of;anothcr, including but not limited to patents, copy.i-iglats., trade secrets,. trade names, and service marks and names. GRAN I~LJ/ shah: indenrnrfy and defend the S"PATE;. at GRANTEE'S expense, from any action or claim brou~It .against the STATE to t}~e extent'that it is based on a claim that. all car parts of the MATT:R~1LS nfxinge upon the intellectual property rights of another. GR11.I~`l'EE shall be-responsible for payment of any and all such claims, demands, cililigati..ons, Liabilities; casts, and damages including, brit not linzitcd to, reasonable attorney fees arising out ol'tlzis Brant cont7~act, ataaendments and supplements thereto, which are attributable to such elazns or actives. If -such a claim or action at~iscs, or in GRA1`~TE>/'S car tlae STA"I•E'S v}inion is likely to arise, C'rRAN"i'LIA, shall at the STATE'S discretion. eitherprc7cure for the STATE the right or Iice:nse to continue using the IVIATEI~T1~.l.S at issue or replace or rrzvciifythe a1}egedly sifrizxging MA'T'ERIALS as necessary grid appropi•iatc to obviate tlae zrti•i,7gement claiza~. This remc:cly (~1~thc S"}SATE shall: be in addition to and shall not be exclusive o:f ether'rexxzedies pr~vided,by law: C `I'hc GRANTE) hereby grants to the STA`l:'E a perpetual, irrevocable, no-fee right and li:censc to make, have. made, reproduce, modify, distribute, perform, arad vthervrise use the MATI?RIAl1S for any and allpurposc , in al,C farms quad manners tiaat the STAIT~, Traits sole discretion, deems= appxapriate. 'Che ETRANT~L; s}iall, upvn the request o1.~ tCae STA'T'E, execute all papers and perfvrixi' all other acts'necessary,. t~> document.-and secure said. right and license to the MA"I'l/RTALS by tllc STA`T'E. At the request of tf,e STATE; the CJRy1NTL-:E shall permit the S'I't1TE to inspect the original. MATETtIAT.S and provide ~ copy ol'any ofthe MATERit1I.S to the'S7~'ATE, without cost, i'(~r use by the STA'T ~ in any manner the STA:TT;, in its sole discretivia,. cleelaas apprvpxiate, X. PUBLICITY Any publicity gi~Tcza to the program, publications, or scrviees'l~rot~ided resulting. fi`om This grant cvntract, i~ncludi~a~g, but not limited to, notices, inforrraational pamphlets, press releases, research, repvrts,:signs, and s.imilarpublic nc~ticcs prepared. by or forthe- ~`rIt1~NTEE or its u.mployecs individttal}y or j oicit.ly whir otlacrs, or auy~ s~tbgi•antees shall identify the STATE` as a sponsoring agency and shall eat ve; released, unless such release is approved in advance in writing by the S"PATE'S Authorized Representative: XI. ENI7nRSEMT~NT The Grantee must zaot claim that the STA'Tl~ endorses its products or services:. 3~II. ~'~'QRKETZ'S CGMPIINS.II`IC3N The GRAN"TEE certifies that it is in compliance-with Nlinnesa~i Statute,. ~ 176.1$1, Sul>divisivn 2, pertaining to workers' compensation insurance coverage. The (~TZAN'PEE'S ezaaploye,es atld agents will not be considered S~:ATE employees. Any chinas tlaatmay arise under the Minnesota. Workers' Compensation Act o» Behalf oE'these employees and any claims. illade by,any third party as a ccansccluence of axiy act or o>xzission on the part of these; employees are iii. no way the S'l`A"I"1?'S oblibation or responsibility. A9asicr Cr•ttrii. Cantr•ach# T2-7th{)-tt'~t)H{) P~t~~ :3 fact„ e~;n the M:innesnta llepas•tn~entof ~-tealtlr araii Cit}~ ~~(`f2icltfif.lti C:I I~ 01/200 4A-~ hIII. JURISDICTION ANI~ VENUE This grant contract, .arid amendtrients and: supplernenls thereto, shall be governed by the laws. of the State of Minnesota. To the extent litigation is not prohibited by section . XIV of this graaxt contract; venue for alI legal proceedings aris.i.ng out of tl:rs grant contract, or breach. thereof, shall he=in the state or federal court. wit11 corllpctent jtuisdacton in 12anisey County, Minnesota. XIV. DISPUTES Any dispute sha11 tie decided 1~y the STATE'S Auth:orizcd Represent~.tve for the particular grant project that the dispute concerns. 'I~h_e STEITE'S Authorized Representative will be identified in :each project agreement between the STATL; and GRANTEE: Tf GRANTEE is dissatisfied with the decision e~fthe S`PATE'S Authorized Representtative:, GRANTEE'S sole and e~elusive ren~.cdy is an adtxxinistrative leariiig before a-a adn~n_istrati~~c Iaw jud~~e undet~ the contested ease procedures oI' the 1\~innesota Administrative Procedure A.ct, Chlpter 14 of the Minnesota. Statutes. Pursuant to Chapter 14, the adyxxinistratiue law judge shall make a-report to flee I~~Iiririesofa Commissioner of Heal~Cl, ~~lro shall rrrake. the final decision on the contested c>asc. If GRANTEE wishes. to request an adnxinistratic~e hearing, GRANTEE trust request a.hearing in a w~•iting received by the STATE within 3~ calendar days after the GRANT'EE'S receipt of the decision of the S"I`AT'E'S Authorized Representative. Thedeeasorr- ofthe Minnesota Commissioner of Health shall be subject to judicial review as provided to the Minnesota Administrative 1?rocedure Act at Nlinriesota Statutes, ~ 14.6 to 14.61. XV. C)THER PROV~SIUNS tS>. Uwrxership ofrquiprricnt Disposition of all equipment purchased undex this grant shall be in accordance with 't'itle X15, Code of ~'edcral Regul~~tiorls, Part '74, Subpart C. I~or all equipment having a current per unit fair market value of $5,00t? or ix?ore, tlxe STATE shall have the rightto require transfer of the equipment (including tattle} to :the federal Government or to ail cligibl~ non-1'edei•al party narrxecl by the STATE:, • .This right will nof'rnnlly tie exoireased }~y the STATE only if the project or pxogr~un f~~r v~~hicli the equipment was acquired is transferred from GRANTEE to another. if the (iRANTEExeceive;5 funding .for flat W1C program-, the Utiunershap cif Equiprrxent language outlined in. the WIC project agreezxicnt supersedes this clause, XV (n}. B, Contractor llebarrn.ent, Suspension A.nd Responsibility Certification I*cdcral IZe17ulation 45 C,I~IZ 92.5 pralthits the STATE I-rc>m purclias.ing goc7ds or serr~iees with fcdei-al money frorri vendors who have been suspended or debarred by the federal government: Similarly, Minnesota Statute, ~l CC:03, Subdivision 2, prcivdes the Commissioner of l~.dmnastrafic~rr. with the autho~-it,~ to defiar. and suspcrrti vendors ~~ho seek to contract with tlae :STATE. . Vendors inay be suspended or debarred wlxerx it is determirxed, tlxro.ugh a duly aufhorazed lcarir-g process, that they have abused the publi:e. trust in a serious m.aniier. Iii particular; t13e federal gt~i ernmci•tt expects the STATE to have a process in plac;c for deteimintxl; vvhether a vendcir has been suspended ar debarred, and to prcvcrxt sreh vendors froth reeeivarig federal funds. By s;~ni~ag,ibis <r~tnt contract, CrRANTEC-certilies that at <uid its principals: 1. Are not presczitly debarred,. suspended, proposed for debarment, declared ir-eligible, or vclrirrtc'rrly excluded from transact,ig business key or with atxy ;federal, state or loc;at goven~me~rt. department or agene<y; and 2, "Have rrot. with i n a tlireie-ye;ar pcriud preoeclina axis Brant contract: a) been convicted of or• had.` a • civil juclgln(:;tit rcnderetl a.~ainst t.hen~ for conunissioix cif fraud. or a criminal otlensf; in Ivt~rster Gr~.t~j contract ~ I2-700~000~0 1'a~ ~ "~ between the ~Innesotii 7)~parlrrrcnt of l-iealth oriel (:ity ~it~ttu:htic;ld (,'t 1F~ 01/200:4' ~A-5" connection with obtaining, attcrnpting to ohtatn or performing a public (federal, state ar Ioca_I) transaction. or contract; b) violated an}~ federal or state antitrust statutes; or c} committed • en717~'LLit;mLnt, tb~:~t, ~~~1 r ei'}', b1Ibz1E f~li~iiic~itl0il O2' f1EStrt,EC-tlOr1 of rCC;i3rUSa 1nalClii~ ~aiSC s~atelnents or receiving stolen. property; and 3. ,ire not presently indicaed c>r others-vise criminally oz" civilly clzal-ge~d by a government entity far: a) comnnission offraud or a criminal ~f~e~nse in connection with obtaining, attempting to obtain oz- perfoin7ing a public (Federal, state or local} transaction; b) violating any iederal or state antitrust statutes; ~r c) committing embezzlement, theft, foz-gery, bribery; falsificati.oz~ or destruction of records, making false statements or receiving stolezl property; and -. ,~.e not av~,are of any infornratiozl and possess no hnowl-edge that any subcontractor(s) that will perfoz7n work pursuant to this grant contract az~e in violation of an~~ of the certifications set fortk~: above. C.. ~-luclit RccltlirGZnenis 1. if the (ik.11N`r'LL; c~cpcnds total .federal assistance oC:t;5~0,000 or more per year, the GRI~NTEE agrees to (1) obtain either a single audit oz• a progi-arn-speca[ic audit made for the fiscal }'ea.r in accordance with the terms of the Single Audit tlct bf I9~4, as amended. {31 U.S. Code Chapter "~S} c~nd C)Iv!EB Circular A-1 >3; anal (2) to cozaaply «~ith the Single Audit Act «f 194, as amcndec3_, (3l U.S. Code Chapter 7.5) and. C}Ml3 Circulal:ll-133. ~4udits shaI1 be made armually cniless the 1•antce is a state or local govcrnincnt that l~as_ by January 1, 1 ~4~7; a constitutional or statritory requirenacut for 1'e5s 1i"egllenf al.rdts. f`ar Those govcz~i~inents, the federal co~:;l~iz u~t agency 5ha11 pel-lnit l~ietzni~il audits. cc)~'el~ing both years, ifs the gover-nn~ent o requests. It shall also lfouor requests for bicnnai audits by state or local ~rovernrnents that live an administrative policy callizig Cor audits less fiecluent than annual_ t~tirt onlyaudits prior to 1E~~7 oradn~illistrative policies in place prior to aanuar-y t, T91i7, 2. 'I`be audit shall be made by an inde}aetldetit auditor..l1xz inclependerit ~udtc?r is a stale ar local govranment auditor or a l3ubiic accotrntdzt who meets the independe7~~e standards specified in the Czeneral l~~ccouritillg ()17ice's `~Stazidards I:tJr ~udital'Uc~vurnmerlt Oa~~anizations, Programs, <lcaivities, a11d Functions." 3. The audit report shall state that the audit vas pcrforrzzed in a~e~arc~antr~c w°ith the }~r~7visioz~s of ~M13 Circular A-133 (or ~-I 1(? as afrplicable). TI7e rel~ortin; recluiz-cn~cl~ts :for aticlit reports shill l:~c in accordance with the ,~meric~trl Institute ot•Cez-tilied Public Accourrt<rnts' (;~11(~l'A) audit guide, "Audits of'State and Local Ciovernment<i:1 t)nits," issued in 196. TIZe federal govern~~:z~t ]ras approved. the tic of the audit wide. In addition. to the audit report, theUR11NTI?E shall provide comnle»ts on the Iindi~ngs a>-~d recorl~imend~ltions in d1e repoz~, including a plan:f~r correcti~~e actitalt takezl or planned ~md. coznnzents on ih~ statr.rs csf col-rective action talt~n ozi prior findings. Il~cozrcctive action is iu;t necessar}, a statcznerzt describiiz the reason it is not should- accanipany the audit report. ~. ~l-$c: GRAN7.~f;:1 ~«~rees that the gralztor, the T.egislativ~e Auditor, the St~~te Auditor, anti any independent arrc'ritor designated b}- the grantcn- s17a11 ha~:e such ~icccss to C; IZ,'~N~,IE S rec<c~r;s ;~'Iastcr Gr,r.nt Contract: ,'# 1?-70t7;0(10~U Pr~t:e ; ~~t«~ee„ti~~°"~~I„me.~~>1~T~ep~tctn~ersCtaf~fJc.iltY;stnG(C:ityul'1~ic1i3:i~~1dC:I1'~ (fl,2oO~{ ~fA-~ and financial statements as zttay be necessary :for the grantor to coni~ly vvth'the Single Audit Act .Amendments ok 1984, as amended (31 IJ.S. Cede Cl~alater 7~) and OMT1 Circular A-1~3: • 5. Subcontractors of federal (in:ancial assistance from. CrRANTFE are also required to comply with the Single Audit Act Amendments of 1984, as aiztendecl (3l LJ.S. Code Chapter 7:5) and: OIt~B Circular A-T"33. 6. The. Statement of Expenditures 1:prm can be used for the schedule of federal assistance. 7. The C~R:A1*T T'Tl:; agrees to retain documentation to sup}iii:rt tl~e schedule. of federal assistance for at leash four years: 3. The GT2:ANTEE agrees to file requ.i-red audit reports with the. State Aud:itor's C~f~ce, Single Audit Division, and with federal and :state agencies pravi:ding federal assistance, within six. months of the grantee'sfiscal year end. O1VlI3 Circular A=133 requires recipients Uf more than: $SOO,f)UO iti I'Ederal funds tt~ submit one. copy of the atadit report within 3Q days after issuance to the central clearinghouse at the: following address: T3ureau of fl~ze Census . T)ata I~rcparation Division 121 fast 1.Q`~' Street ,Teffersonvlle; Indiana 47 T 32 Attn: Single Audit Clearinghouse • D, T7rtt~ r~ ee V~'ork lp ace GR.AN`T'EE agrees. to coYnpIy with the Drug.-free Workplace Act of 198, as it~iplemented at 34 CI~'Tt fart ~'_5, S~zbpart:'I" . T~;~ L,obl~viz The CiRANTT;I agrees to comply with tlae provisions. of United States Code, "T'itlt; 31, Section 13 i2,. Tl~e GftAN;l'1=;p; must not use airy federal funds from the S"PATE to pay any person Ior influencing car attcinpting to influence.an officer or employee of a federal agency, a 1~~eznber of Congress, an officer fit' em"ployee of Congress, or any employee of a member ~f Congress ri connection with the a~xraz-dizlg of any federal contract; thenlaki"ng of tizzy fcdcraigrant, the making ~Sany lecleral loam, the cnterind into of any e;oc~p~raTiveagxcement, or~ihe extension., continizatzon; renewal, amendment, or,inodification of az~~- tedcr~tl contract, grant;, loan or cooperative agreement. Tf the CIRANTEF uses any ['unds other than the: federal funds I'rotn the STA'T'E to conduct any of the aforerrientioned activities, the CiRAN~ lE trust ~oznpletc and submit to the STA"I'l. the d.isc.losure torrrf spccil:ied by the ST'ATl: T~urthcr, the GRANTEE. must include the language ~fthisprovision in all contracts and sit[}contracts and all contractors a.nd subcontractors must ct~mpl.y accordingly. p'. ~tial T~mplovn~ent t) ~pot~tunity GTZANTEE ~3~~rees to comply with the Executive Order 1124 "1?qual FmplUyrnent Upportunity" as alnetzded by Executi~c C)rder 11.3'75 a:nd supplemez~.ted by regulations at 41 CT~R Part ~iQ. C~'. Cost. Pi-izciG?les The GRAN"1'I/E agrees. to comply with: tlxe ~rovisiozas of C)MB Circular A-2l . A-87 or A~1,~2. • regar~zng cost principles for adrtinistration czf this bi-ant awarel. --lacier (~r~t~t C'ontract;f t2-70U-UUUtiO 1'~~eb I7ctweczt tRe Mi~mespta Uepartinent of>-lial:fx aaad C'ily cif .t~ichfeh3 {:1113 Oli2~O~$ ~4R ~ .H. Rt~hts to haventions -experimental I}evelopmental' ar IZcsearcl~ Work • The CiRANT'EE agrees to comply with 37 CSR, Part 401, "Rights to Inventions Made by Nonprofit Organisations .and Small Business Firms Under Government Grants, Contracts anti Cooperative Agreements" and any implementing regulations issued by the awarding. agency. 1. -Clean Air. Act The GRAN:Tlal/ agrees to comply tivith all applicable standards, orders c~r'refuiations issued. pursuant to the Clean Air Act as amended (42 IJ.S.C, '74U 1 et seq.) and the .Federal Water Po.llntion Control Act as amended (3 U,~,C. 1251 et seq,). Violations shall be reported tc~ the Federal awarding agency and the Regional (7ffice of the L,nvironmental Protection Agency (I:;I'A). J. No Smoking With respect to faciiitics over which the GRANTT:I has control, the CiI:tLNTEE shall pt~ohibit smoking in-:any area.of the hospital, health care clinic, doctor's office or other health care-relatccl public facility, except as allowed by Minnesota Statcites, ~ 144.41:4, Subdivision 3. K. Nca C,onlYict >~f Interest Thc'GRANTEE hereby assures thatno interest exists, directly or indirectly, which cc~ulci conflict m- any manner or dt:grec ~vitl~ the GIZANTi'sE'S performance of services rF;quired to be perfc~rnied under this grant oc~ntract. L. No (}bli ate, ion to IZeneva Neither the ST.4TF nor the tiRAN'I'EE leas an obligation to renew this grant contract. ;~`VI. APPLIC~,BILITY TU 1NI~NIDUnL GRANT PRnJECTS Unless otherwise specified in the individual grant project agreement, clauses II and IV through XV o'this master grant contract skull apply tv' all project agreements entered into befweeiY the 5'I'A'I'E. anal the CKAI\TI?)/ betw:eet'; January -1, 2Q0~), and~Decenlber 3l, 20.15, inclusive.. • Master Grartt.C;antraet # f 2=700-000&0 P~t~c 7 fjc;tw€cn tic twtinnesat<~ I7cpartn7eiat oft-#calh anti. City cif Rchtielt3 C"Cif3 01t2(10£~ • AGENDA SECTION:. Consent AGENDA ITEM # [F$ REPORT # 273 r STAFF REPORT CITY COUNCIL MEETING NOVEMBER 25, 2008 REPORT PREPARED BY: BETSY OSBORN, SUPPORT SERVICES MANAGER NAME, TITLE C7 DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Approval of the continuation of the agreement with the City of Bloomington for the provision of ublic health services for the Cit of Richfield for the ear 2009. I. RECOMMENDED ACTION: By Motion: Approve the continuation of the agreement with the City. of Bloomington for the provision of public health services for the City of Richfield for the ear 2009. II. BACKGROUND In 1977, the State of Minnesota enacted the Community Health Services Act which transferred the responsibility for the administration of public health programs to local jurisdictions.. The state also provided funds for the program, and encouraged local jurisdictions to increase the efficiency of their programs by grouping together. Richfield .and Edina entered into a joint powers agreement with Bloomington, and the program has been administered under that agreement since that time. The contract amount for providing public health nursing services in 2009 reflects a 4% increase over the 2008 contract amount. This is due to cost increases as it relates to salaries and benefits. The contract for 2009 is $193,284 while the contract amount for 2008 was $185,850. In 2004, changes were made to the Community Health Services Act at the State level to make reporting and accountability recordkeeping more efficient. Those 1125 Bloomington Health Nursing Contract for 2009 changes also "regrouped" a large number of funding sources into one, which gives more personalization of the funds for the best specific use of dollars within the community to be used in conjunction with grant guidelines. It is now referred to as the Local Public Health Subsidy. See the enclosed 2007 Annual Report from the City of Bloomington Public Health Division for specific information relative to the amount of Richfield citizens served in the various health related areas. III. BASIS OF RECOMMENDATION A. POLICY • The City of Bloomington has sufficient resources to provide a professional level of public health services to Richfield residents. Annual evaluations of their services has shown that they are providing effective services in a very cost-efficient manner and that Richfield residents receiving -their services are very satisfied. B. CRITICAL ISSUES • N/A C. FINANCIAL • Cost for this service has increased by 4%: The contract for 2009 is . $193,284 while the contract amount for 2008 was $185,850. D. LEGAL • N/A E. ENVIRONMENTAL CONSIDERATIONS • N/A IV. ALTERNATIVE RECOMMENDATION~S~ • The Council could decide to have Richfield provide its own public health nursing services. The cost of hiring the nursing staff necessary to provide the same level of services and administrative support would be more than our current expenditures and would require a budget increase. • The Council could decide to compensate the City of Bloomington at a lower rate, which would require designated reductions in services or programs and would impact Richfield residents. V. ATTACHMENTS • 2009 Bloomington Public Health Contract • 2007 Bloomington Public Health Division Annual Report • VI. rRINCIPAL PARTIES EXPECTED AT MEETING • None ~~' ~ .AGREEMENT BETWEEN THE CITIES OF BLOOMINGTON AND RICHFIELD TO PROVIDE COMMUNITY HEALTH-SERVICES THIS AGREEMENT, made and entered into this day of by and between the City of Bloomington, a Minnesota municipal corporation, in the County of Hennepin, State of Minnesota ("Bloomington"), and the City of Richfield, a Minnesota municipal corporation, in the County of Hennepin, State of Minnesota ("Richfield"). WITNESSETH: WHEREAS, Bloomington warrants and represents that its Division of Public Health is a duly certified public health agency operating in accordance with all applicable federal and state requirements; and WHEREAS, Bloomington's Division of Public Health provides community health services, including, but not limited to public health nursing services (including home • visiting), public health clinics, health education, health promotion services, disease prevention and control, health planning, and program administration; and WHEREAS, Richfield wishes to promote, support, and maintain the health of its residents by providing community health services such as health education, communicable disease programs, public health nursing services, health assessment, counseling, teaching, and evaluation in the community, home and clinic setting at a nominal fee to those making use of such services, and to contract with Bloomington for Bloomington, through its Division of Public Health, to provide such services to residents of Richfield; and WHEREAS, the governing bodies of Bloomington and Richfield are authorized by Minnesota Statutes, Section 145A.04, Subdivision 5, and by Minnesota Statutes, Section 471.59, Subdivision 10, to provide community health services and to enter into agreements with each other for the providing by Bloomington of community health services to residents of Richfield; and • ~It3-o1 WHEREAS, through this contractual arrangement the provision of community health • services will enable Richfield to document progress toward the achievement of statewide outcomes, as stated in Minnesota Statutes, Section 145A.10, Subdivision 5. NOW, THEREFORE, the parties hereto, and for consideration of the covenants hereinafter set forth, agree as follows: 1. Bloomington, through its Division of Public Health, agrees to provide residents of Richfield with community health services (hereinafter called "Health Services"), which includes activities designed to protect and promote the health of the general population within a community health service area by emphasizing the prevention of disease, injury, disability, and preventable death through the promotion of effective coordination and use of community resources, and by extending health services into the community. 2. In addition, Bloomington will also provide Maternal Child Health services which. include services provided to women of childbearing age, infants, children and adolescents and to provide services to women and children who qualify for TANF (Temporary Assistance to Needy Families) services. The payment for these additional services is made directly to Bloomington from the Minnesota Department of Health; these grant dollars. are not part of this Agreement. 3. Bloomington agrees to provide community health services to the residents of Richfield utilizing the same quality and kind of personnel, equipment and facilities as health services are provided and rendered to residents of Bloomington. 4. Bloomington shall provide the health services pursuant hereto on a confidential basis, using capable, trained professionals. 5. All Health Services to be rendered hereunder by Bloomington shall be rendered pursuant to and subject to public health policies, rules, and procedures now or hereafter, from time to time, adopted by the Bloomington City Council, and in full compliance with all applicable state and federal laws, provided, however, that (i) no policy, rule, or procedure • hereafter adopted by the Bloomington City Council shall in any way affect, modify, or change the obligations, duties, liabilities, or rights of the .parties hereto as set out in this Agreement, or reduce or detract from the kind, quality, and quantity of Health Services to 48-3 be provided hereunder by Bloomington to residents of Richfield, and (ii) all such policies, rules and procedures shall be uniformly applied to all persons receiving Health Services from Bloomington, whether residents of Richfield, Bloomington, or any other municipality. Richfield agrees to adopt the same policies,. rules, and procedures as are from time to time adopted by Bloomington, if determined by Richfield to be necessary or desirable to facilitate or regulate the provision of Health Services by Bloomington to residents of Richfield pursuant hereto. 6. Richfield agrees to pay Bloomington, for the provision of Health Services pursuant hereto, amounts and on terms as follows: a. The annual sum of $193,284 shall be paid in quarterly payments of $48,321 to Bloomington within fifteen (15) days of the receipt by Richfield of each of the reports to be given pursuant to Paragraph 6.B hereof, subject, however, to the provisions of Paragraph 6.C hereof. b. On April 15, July 15, and October 15, 2009 and on January 15, 2010, Bloomington shall send Richfield a statement, certified by the person in charge of Bloomington's Division of Public Health as being true and correct, and covering the period of three (3) calendar months preceding the month in which the report is given, and setting forth, in such detail as Richfield shall reasonably require, the numbers of persons served, the kinds of Health Services delivered, the locations where such .services were delivered, and such other information as Richfield shall reasonably request. c. No payment or payments need be made by Richfield under this Agreement while Bloomington is in default under any of the terms and conditions hereof. 7. In the event Richfield desires to inspect the financial books and records of Bloomington related to the providing'of Health Services hereunder by Bloomington, Bloomington shall make its financial books and records available at the Bloomington City Hall for inspection and copying by Richfield, or any agent, employee, or representative of Richfield, at reasonable business hours. • 8. It shall be the sole .responsibility of Bloomington to determine the qualifications, functions, training, and performance standards far all health service personnel who render 48-4 Health Services under this Agreement; provided, however, that Bloomington agrees that all • such personnel shall be capable, trained professionals. 9. Bloomington's Division of Public Health will communicate with Richfield relative to Health Services to be performed hereunder by Bloomington, such communication to be in the form of reports, conferences, or consultations, as the respective Richfield departments .shall request. All reports relating to the providing of Health Services that are given by Bloomington's Division. of Public Health to the Bloomington City Council or to-the City Manager during the term. of this Agreement shall also, and at the same time, be given to Richfield. 10. Bloomington also agrees to send to Richfield an annual report describing the activities performed and Health Services rendered pursuant to this Agreement. Such report shall be in such detail and form as Richfield may reasonably request. The annual report shall be sent with and in addition to the last quarterly report acquired by Paragraph 6.B hereof. Also, at Richfield's request, made not more than two (2) times during the term • of this Agreement, .responsible administrative officers of Bloomington's Division of Public Health shall attend meetings of the Richfield City Council or appropriate board or . commission to answer questions and give further information relative to the activities performed and Health Services rendered under this Agreement. 11. Bloomington hereby agrees to maintain in force its present policy of comprehensive general liability insurance in compliance with Minnesota Statutes, Section 466, and professional liability coverage in the amount of one million dollars ($1,000,000) per occurrence and one million dollars ($1,000,000) in aggregate for the term of this contract. Said policy shall be with. an insurance company authorized to do.business in Minnesota. If requested, the City of Bloomington will provide a certificate of insurance evidencing such coverage. 12. Bloomington shall further require personal medical malpractice insurance • coverage by its physicians and other health professionals with whom Bloomington has a contract for professional services. yB-5 13. This Agreement shall be for a period of from January 1, 2009, to December 31, • 2009, provided that either party may terminate the same by one hundred twenty (120) days written notice to the other. Upon such termination, all obligations and liabilities of the parties hereunder shall cease and terminate, except the provisions of Paragraph 12 hereof shall continue and survive such termination. Also, in the event of termination pursuant hereto, the quarterly payment next due shall be prorated and paid for only the period ended on the date of termination, and Bloomington shall send to Richfield, within thirty (30) days after such termination, a report in the form of, and in lieu of, the annual report required by Paragraph 10 hereto, and Richfield shall pay such reduced quarterly payment for the period ended on the date of termination, within fifteen (15) days after receipt of both such reports. 14. Bloomington and Richfield understand and agree that each of them shall apply and qualify, independently and separately, for any and all grants, matching funds,, and payment of all kinds from state, federal, and other governmental bodies relating to, or for the provision of, any or all of the Health Services, and any and all such grants, matching funds, and payments shall belong to the recipient and be used and applied as the recipient thereof shall determine, without regard to this Agreement. 15. All notices, reports, or demands required or permitted to be given under this Agreement shall be in writing and shall be deemed to be given when delivered personally to an officer of the party to which notice is being given, or when deposited in the United States mail in a sealed envelope, with registered or certified mail, postage prepaid thereon, addressed to the parties at the following addresses: To Bloomington: 1800 West Old Shakopee Road Bloomington, Minnesota 55431 Attention: City Manager To Richfield: 6700 Portland Avenue South Richfield, Minnesota 55423 Attention: City Manager • Such addresses may be changed by either party upon notice to the other party given as herein provided. us -~ 16. The parties agree to comply with the following laws and regulations: • a. Richfield agrees to comply with the Americans With Disabilities Act and agrees to hold harmless and indemnify the City of Bloomington from costs, including but not limited to damages, attorney's fees and staff time, in any action or proceeding brought by third parties alleging a violation of ADA by Richfield. Bloomington agrees to hold harmless and indemnify Richfield from costs, including but not limited to damages, attorney's fees and staff time, in any action or proceeding brought by third parties alleging a violation of ADA by Bloomington. The City of Bloomington does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Bloomington has designated coordinators to facilitate compliance with the Americans With Disabilities Act of 1990 (ADA), as required by Section .35.107 of the U.S. Department of Justice regulations, and to coordinate compliance with Section 504 of the Rehabilitation Act of 1973, as mandated by Section 8.53 of the U.S. Department of Housing and Urban Development regulations. For information contact the Human Services Division, City of Bloomington, 1800 Old West Shakopee Road, Bloomington, Minnesota 55431; telephone (952) 563-8700; TTY: (952) 563-8740. b. The parties agree to comply with the Minnesota State Human Rights Act, Minnesota Statutes, Section 363. 17. Non-Assignment. The parties agree that this Agreement shall not be assignable except at the written consent. of both parties. 18. Scope of Agreement. This Agreement represents the entire Agreement between Richfield and Bloomington and supersedes and cancels any and all prior agreements or proposals, written or oral, between the parties relating to the subject matter hereof; and amendments, addenda, alterations, or modifications to the terms and conditions of this Agreement shall be in writing and signed by both parties. 19. Richfield will comply with all applicable provisions of the Minnesota Government Data Practices Act, Chapter 13 of the Minnesota Statutes. 7tJ~~ 20. Both parties shall defend, indemnify, .and hold harmless the other party, its • officials, employees, volunteers and agents, from any and all claims, causes of action, lawsuits, damages, losses, or expenses, including attorney fees, arising out of or resulting from either party's (including its officials, employees, volunteers or agents) perFormance of the duties required under this Agreement, provided that any such claim, damages, loss or expense is attributable to bodily injury, sickness, disease, or death or to injury to or destruction of property including the loss of use resulting therefrom and is caused by any negligent act or omission or willful misconduct of either party including its officials, agents, volunteers or employees. Liability shall be governed by the provisions of the Municipal Tort Claims Act, Minnesota Statutes, Chapter 466, 21. Bloomington and Richfield agree to submit all claims, disputes and other matters in question between the parties arising out of or relating to this Agreement to mediation. The mediation shall be conducted through the Mediation Center, 1536 Hewitt Avenue, St. Paul, Minnesota 55104. The parties hereto shall decide whether mediation shall be binding or non-binding. If the parties cannot reach agreement, mediation shall be non-binding. In the event mediation is unsuccessful, either party may exercise its legal or equitable remedies and may commence such action prior to the expiration of the applicable statute of limitations. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be .duly executed and their corporate seal to be affixed hereto the day and year first above written. CITY OF BLOOMINGTON: Dated: By: Its Mayor Dated: By: • Its Manager ~~~~ Reviewed and approved by the City Attorney. City Attorney Dated: Dated: • CITY OF RICHFIELD: By: Its Mayor By: Its Manager • r1 L_J AGENDA SECTION: AGENDA ITEM # REPORT # ~~' STAFF REPORT Consent 4C _ 274.: CITY COUNCIL MEETING NOVEMBER 25, 2008 • • REPORT PREPARED BY: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: BETSY OSBORN, SUPPORT .SERVICES DIVISION MANAGER Na~c, TITLE ITEM FOR COUNCIL CONSIDERATION: Consideration of a 2009 contract with the City of Bloomington, using public health emergency preparedness grant funds distributed by a federal grant from the Centers for Disease Control, to provide services in the area of public health emergency preparedness/bioterrorism and the development of a response system. L RECOMMENDED ACTION: By Motion: Approve the 2009 contract with the City of Bloomington, using federal .grant funds, to provide services in the area of public health emergency preparedness/bioterrorism and the development of a response system. II. BACKGROUND The State of Minnesota has received funds from the federal government (Centers for Disease Control) to be used in developing agencies' public health emergency preparedness/response to bioterrorism. This is part of a nationwide effort to respond to serious public health .emergencies. There are specific requirements in the grant in the areas of coordination, assessment, planning and exercise, response surveillance, Health Alert Network, risk communication and training. 1125 Bloomington Contract for PREP Bioterrorism & a Response System • The City of Richfield will receive $36,'077 for the grant cycle, which runs. from August 10, 2008 to August 9, 2009. The contract with the City of Bloomington for this same period of time for public health emergency preparedness is in the amount of $22,624 with a second amount of $8,284 being passed through directly to Bloomington to meet the Cities Readiness Initiative (CRI) which is intended to be used metro wide to regionally fund public health emergency preparedness planning,. exercises, training and activities. A remaining amount of $5,169 is retained by Richfield for staff time, training, planning and exercises in public health emergency preparedness activities. Richfield continues to pool these federal grant dollars with Bloomington and Edina with a portion of these funds used to support a Public Health Emergency Preparedness Coordinator for the three cities. Lisa Brodsky, Public Health Emergency Preparedness Coordinator, is representing the Tri City area (Bloomington,, Edina and Richfield) and has been regularly meeting with Richfield and Edina health staff to plan and develop the requirements of the grant funds. III. BASIS OF RECOMMENDATION • A. POLICY • The City of Richfield became a Local Public Health Agency (LPHA) in 1977, which makes the City eligible to receive these grant funds to use in the development of a public health emergency response system specific to Richfield and its' needs. B. CRITICAL ISSUES • These funds are part of a nationwide effort by the Federal government to respond to serious public .health emergencies, to include threats of bioterrorism. C. FINANCIAL • Funds being used are those given to Richfield. as a LPH agency, from the federal government, to develop a system for responding to public health emergency preparedness, bioterrorism threats. D. LEGAL • The City must comply with the requirements of the grant in order to receive grant funds. • • E. ENVIRONMENTAL CONSIDERATIONS • None IV. ALTERNATIVE RECOMMENDATION(S~ • The City Council could decide not to approve the contract with the City of Bloomington for the services of a Public Health Emergency Preparedness Coordinator in developing a public health emergency preparedness/bioterrorism plan. This would mean that the City would have to hire a staff person to assume some of the grant's responsibilities, which cannot be met with current City staffing levels and would result in a budget increase. V. ATTACHMENTS • City of Bloomington Public Health Preparedness/bioterrorism contract VI. PRINCIPAL PARTIES EXPECTED AT MEETING • • None • yC-1 • AGREEMENT BETWEEN THE CITIES OF BLOOMINGTON AND RICHFIELD FOR PUBLIC HEALTH PREPAREDNESS AND RESPONSE TO BIOTERRORISM THIS AGREEMENT,. is made and entered into this day of by and between the City of Bloomington, a Minnesota municipal corporation, in the County of Hennepin, State of Minnesota ("Bloomington"), and the City of Richfield, a Minnesota municipal corporation, in the County of Hennepin, State of Minnesota ("Richfield"). WITNESSETH: WHEREAS, Bloomington warrants and represents that its Division of Public Health is a duly certified public health agency operating in accordance with all applicable federal and state requirements; and WHEREAS, Bloomington's Division of Public Health provides public health emergency preparedness services to respond to bioterrorism, infectious diseases, and other threats to public health including, but not limited to coordination, assessment, planning and exercise, response, surveillance, Health Alert Network, and training (hereinafter referred to as "PH Emergency Preparedness Services"); and provides services and activities to improve the mass dispensing. of medicines and medical supplies through the Cities Readiness Initiative (hereinafter referred to as "CRI Duties"); and WHEREAS, Richfield wishes to promote, support, and maintain the health of its residents by providing public health emergency preparedness, and Cities Readiness Initiative planning activities, and to contract with Bloomington, through its Division of Public Health, to provide such services to residents of Richfield; NOW, THEREFORE, the parties hereto, and for consideration of the • covenants hereinafter set forth, agree as follows: 4C-~ • A. Term. The term of this Agreement shall be from August 10, 2008 through August 9, 2009 provided that either party may terminate the same by sixty (60) days' written notice to the other. In the event of termination pursuant hereto, the quarterly payment next due shall be prorated and paid for only the period ended on the date of termination, and Richfield shall pay such reduced quarterly payment for the period ended on the date of termination, within fifteen (15) days after receipt of Bloomington's invoice. B. Bloomington, through its Division of Public Health, agrees to provide residents of Richfield with the following PH Emergency Preparedness Services: 1. Bloomington shall participate in site visits, .programmatic reviews, training sessions, regional and/or statewide exercises, assessments and meetings as requested by the STATE. • 2. Bloomington shall develop exercises in accordance with Homeland Security Exercise Evaluation Program (HSEEP) standards throughout the grant period. 3. For exercises that Bloomington participates in, Bloomington shall submit an exercise notification form and After Action Report and Improvement Plan (AAR/IP) to the Office of Emergency Preparedness Exercise Coordinator for each exercise conducted at any level with federal funds. The exercise notification form is located on the Minnesota Department of Health Workspace and shall be submitted at the time of the initial planning .conference, and a minimum of thirty (30) days prior to the exercise. The AAR/IP shall be completed in accordance with HSEEP standards and submitted within 60 days of the exercise and Bloomington shall monitor corrective actions for each exercise. NC-3 . 4. Bloomington shall complete an AAR/IP within sixty days of all significant Public Health incidents or events if Bloomington is involved in the response. Bloomington will use HSEEP format and Bloomington shall monitor corrective actions for each AAR/IP stemming from a significant Public Health incident or event. 5. Bloomington shall create on or before 10 September 2008 a current roster of pre-identified public health agency staff available to fill appropriate Incident Command System (ICS) functional roles within Bloomington agency's jurisdiction. Bloomington shall update and maintain the roster throughout the grant period. 6. Bloomington shall conduct a minimum of two (2) Staff Alert and Notification tests. 7. Bloomington shall conduct a minimum of two (2) Health Alert • Network tests. Deadlines for conducting these tests are: 15 February 2009 and 15 July 2009. 8. Bloomington shall reply to all STATE Health Alerts and Health Alert Updates within one (1) hour of receipt. 9. Bloomington shall transmit the STATE'S Health Alerts and Health Alert Updates to local Health Alert Networks as requested by the STATE within one (1) hours of receipt. 10. Bloomington shall reply to all STATE Health Advisories and Health Advisory Updates within twenty four (24) hours of receipt. 11. Bloomington shall transmit the STATE Health Advisories and Health Advisory Updates within twenty four (24) hour of receipt. 12. Bloomington shall assist in the completion of semi-annual activity reports, final reports and other reports and documents requested by the STATE. All reports shall be due on or before 12:00 noon of 4 C-4 . each respective due date. All reports shall be submitted in the manner and format required by the STATE. 13. Bloomington shalV supply any additional information that may be requested by the STATE as it relates to the agency's public health preparedness, preparedness milestones, resource assessments, or evidence-based deliverables such as plans, procedures, exercises, training records or other documents apparent or necessary to the successful completion of Bloomington's duties or grant oversight. 14. Bloomington shall successfully complete all grant duties as required on or before 9 August 2009. 15. Where applicable to Richfield, Bloomington shall carry out the Planning and Preparedness Tier Roles and Responsibilities and be prepared to carry out the Detection, Response, Recovery, and • Long-Term Recovery Roles and Responsibilities. The Local Health Department Tier Roles and Responsibilities is identified as Attachment A and is delineated in 2008 - 2009 Work Plan for the Emergency Preparedness Team, Attachment B. Attachment A and B are fully incorporated into this grant contract. 16. Bloomington shall complete the Certification Form after reviewing the Local Health Department Tier Roles and Responsibilities Tiers Document and consulting with their regional Public Health Preparedness Consultant or designee. Bloomington shall submit the Original signed and executed form to OEP Grant Management on or before 12:00 noon 31 October 2008. 17. Bloomington shall schedule a local CRI assessment with the OEP • Cities Readiness Initiative Coordinator on or before 1 April 2009. yC-S 18. Bloomington shall obtain and maintain a passing score of 69% or higher on the Bloomington, Edina and Richfield Cities Readiness Initiative (CRI) assessment on or before 30 June 2009 and participate fully in any consultation meetings. 19. Bloomington shall incorporate the point of dispensing (POD) standards provided by DSNS into local plans. 20. Bloomington shall complete a minimum of three (3) Division of Strategic National Stockpile exercises during the grant performance period of 10 August 2008 to 9 August 2009 in accordance with the following: a. On or before 31 December 2008, Bloomington.shall conduct one (1) DSNS exercise; and b. Two (2) additional exercises must be conducted on or before 9 • August 2009. O At least one (1) of the exercises must be a full scale or functional mass prophylaxis dispensing exercise. O Participate in Metropolitan Statistical Area-wide full scale or functional mass prophylaxis dispensing exercise. For the purposes of the three (3) DSNS exercises, these exercises may include any three (3) of the following: staff call down, site activation, facility set-up, pick list generation, dispensing, and/or modeling of throughput. 21. Bloomington shall submit the resulting exercise data, after action report(s) and improvement plans and related documents to National Exercise Schedule (NEXS). • 22. Bloomington shall conduct or lead in additional exercises or fully participate in other activities relating to the Strategic National 4c-~ Stockpile (SNS) as directed by the Centers for Disease Control or the Minnesota Department of Health and serve on designated committees. 23. Bloomington shall provide the PH Emergency Preparedness Services and CRI Duties pursuant hereto on a confidential basis, using capable, trained professionals. 24. All PH Emergency Preparedness Services and CRI Duties to be rendered hereunder by Bloomington shall be rendered pursuant to and subject to public health policies, rules, and procedures now or hereafter, from time to time, adopted by the Bloomington City Council, and in full compliance with all applicable state and federal laws, provided, however, that (i) no policy, rule, or procedure hereafter adopted by the Bloomington City Council shall in any way • affect, modify, or change the obligations, duties, liabilities, or rights of the parties hereto as set out in this Agreement, or reduce or detract from the kind, quality, and quantity of PH Emergency Preparedness Services and CRI Duties to be provided hereunder by Bloomington to residents of Richfield, and (ii) all such policies, rules and procedures shall be uniformly applied to all persons receiving services from Bloomington, whether residents of Richfield or Bloomington. Richfield agrees to adopt the same policies, rules and procedures as are from time to time adopted by Bloomington, if determined by Richfield to be necessary or desirable to facilitate or regulate the provision of PH Emergency Preparedness Services and CRI Duties by Bloomington to residents of Richfield pursuant hereto. 4C ~ • C. Payment. Richfield agrees to pay Bloomington $22,624 for the provision of PH Emergency Preparedness Services, and $8,284. for CRI Duties during the term of this Agreement, for the total amount of $30,908 on terms as follows: a. Bloomington shall bill Richfield for PH Emergency Preparedness Services. and CRI Duties. Payment shall be made within fifteen (15j days of receipt by Richfield of Bloomington's invoice. b. No payment or payments need be made by Richfield under this Agreement while Bloomington is in default under any of the terms and conditions hereof. c. In the event Richfield desires to inspect the financial books and records of Bloomington related to the providing of PH • Emergency Preparedness Services and CRI Duties by Bloomington, Bloomington shall make its financial books and records available at the Bloomington City Hall for inspection and copying by Richfield, or any agent, employee, or representative of Richfield, at reasonable business hours. 25. It shall be the sole responsibility of Bloomington to determine the qualifications, functions, training, and performance standards for all health service personnel who render PH Emergency Preparedness Services and CRI Duties under this Agreement; provided, however, that Bloomington agrees that all such personnel shall be capable, trained professionals. 26. Bloomington's Division of Public Health will communicate with • Richfield relative to PH Emergency Preparedness Services and CRI Duties to be performed hereunder by Bloomington, such ~C-8 • communication to be in the form of reports, conferences, or consultations, as the respective Richfield departments shall request. - 27. Bloomington also agrees to send to Richfield quarterly reports describing the activities performed and PH Emergency Preparedness Services and CRI Duties rendered pursuant to this Agreement. Such report shall be in such detail and form as Richfield may reasonably request. Also, at Richfield's request, made. not more than two (2) times during the term of this Agreement, responsible administrative officers of Bloomington's Division of Public Health shall attend meetings of the Richfield City Council or appropriate board or commission to answer questions and give further information. relative to the activities • performed and PH Emergency Preparedness Services and CRI Duties rendered under this Agreement. 28. Bloomington hereby agrees to maintain in force its present policy of comprehensive general liability insurance in compliance with Minnesota Statutes, Section 466, and professional liability coverage in the amount of one million dollars ($1,000,000) per occurrence and one million dollars ($1,000,000) in aggregate for the term of this contract. A copy of the policies shall be furnished to Richfield. Said policy shall be with an insurance company authorized to do business in Minnesota. 29. MISCELLANEOUS PROVISIONS The parties agree to comply with the following laws and regulations: 4 c-q a. ADA. Richfield agrees to comply with the Americans with Disabilities Act of 1990 (ADA) and agrees to hold harmless and indemnify the City of Bloomington from costs, including but not limited to damages, attorney's fees and staff time, in any action or proceeding brought ~by third parties alleging a violation of ADA by Richfield. Bloomington agrees to hold harmless and indemnify Richfield from costs, including but not limited to damages, attorney's fees and staff time, in any action or proceeding brought by third parties alleging a violation of ADA by Bloomington. The City of Bloomington does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, • programs, or activities. Bloomington has designated coordinators to facilitate compliance with the Americans with Disabilities Act of 1990 (ADA), as required by Section 35.107 of the U.S. Department of Justice regulations, and to coordinate compliance with Section 504 of the Rehabilitation Act of 1973, as mandated by Section 8.53 of the U.S. Department of Housing and Urban Development regulations. For information contact the Human Services Division, City of Bloomington, 1800 Old West Shakopee Road, Bloomington, Minnesota 55431; telephone (952) 563-8700; TTY: (952) 563-8740. b. Human Rights. The parties agree to comply with the Minnesota State Human Rights Act, Minnesota Statutes, • Section 363. ~c-~o • 30. Non-Assignment. The parties agree this Agreement shall not be assignable except at the written consent of both .parties. 31. Sco a of A reement. This Agreement represents the entire Agreement between Richfield and Bloomington and supersedes and cancels any and all prior agreements or proposals, written or oral, between the parties relating to the subject matter hereof; and amendments, addenda, alterations, or modifications to the terms and conditions of this Agreement shall be in writing and signed by both parties. 32. Data Practices. Each party will comply with all applicable provisions of the. Minnesota Government Data Practices Act; Chapter 13 of the Minnesota Statutes. 33. Indemnification. • a. Richfield shall defend, indemnify, and hold harmless Bloomington, its officials, employees, volunteers and agents, from any and all claims, causes of action, lawsuits, damages, losses, or expenses, including attorney fees, arising out of or resulting from Richfield's (including its officials, employees, volunteers or agents) performance of the duties required under this Agreement. b. Bloomington shall defend, indemnify, and hold harmless- Richfield, its officials, employees, volunteers and agents, from any and all claims, causes of action, lawsuits, damages, losses, or expenses, including attorney fees, arising out of or resulting from Bloomington's (including its officials, employees, volunteers or agents) performance of the duties required under this Agreement. ~C.-Il • c. Liability for Richfield and Bloomington shall be governed by the provisions of the Municipal Tort Claims Act, Minnesota Statutes, Chapter 466. Nothing in this Section is intended or shall operate as a waiver of any defenses or limitations on liability available under the Municipal Tort Claims Act, Minnesota Statutes, Chapter 466. -The provisions of this Section are not intended for the benefit of any third party. 34. Mediation. The parties agree to submit all claims, disputes and other matters in question between the parties arising out of or relating to this Agreement to mediation. The mediation shall be conducted through. the Mediation Center, 1536 Hewitt Avenue, St. Paul,, Minnesota 55104. The parties hereto shall decide • whether mediation shall be binding or non-binding. If the parties cannot reach agreement, mediation shall be non-binding. In the event mediation is unsuccessful, either party may exercise its legal or equitable remedies and may commence such action prior to the expiration of the applicable statute of limitations. ~ C-~ 2-- IN WITNESS WHEREOF,- the parties have hereunto set their hands on the dates • n U written below. Dated: Dated Dated: Dated: CITY OF BLOOMINGTON: By: Its Mayor By: Its City Manager Reviewed and approved by the City Attorney. City Attorney CITY OF RICHFIELD: By: Its Mayor By: Its City Manager 1125PREP • n U ~~' STAFF REPORT AGENDA SECTION: AGENDA ITEM # REPORT # CITY COUNCIL MEETING NOVEMBER 25, 2008 Consent 4D 275 REPORT PREPARED BY: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: SIGNA ITEM FOR COUNCIL CONSIDERATION: Approval of the continuation of the agreement with. the City of Bloomington for the provision of food inspection services for Richfield for the ear 2009. I. RECOMMENDED ACTION: By Motion: Approve the continuation of the agreement with the City of Bloomington for the provision of food inspection services for Richfield for the vear 2009. II. BACKGROUND The City of Bloomington has provided inspection and enforcement services in the areas of food, beverage, lodging and public swimming pool and plan check for food services for many years. The proposed contract for 2009 for these services will be $90,300 compared to the 2008 contract amount of $86,825. This increase is as a result of an approximately. 4% adjustment for salaries and benefits. • The terms of the contract still provide for the contract to be terminated upon the expiration of 30 days after service of written notice upon the other party, if there should be a need to terminate it before it expires December 31, 2009. BETSY OSBORN, SUPPORT SERVICES DIVISION MANAGER NAME, TITLE 1125 Renewal of Bloomington Food Inspections Contract for 2009 III. BASIS OF RECOMMENDATION A. POLICY • The City of Bloomington has sufficient resources to provide a professional level of inspection services to Richfield residents. Annual evaluations of their services have shown that they are providing efficient services in a very cost-effective manner. B. CRITICAL ISSUES • N/A C. FINANCIAL • There is an increase of approximately 4% in the 2009 contract ($90,300) compared to the 2008 contract ($86,825) for salaries and benefits. D. LEGAL • N/A E. ENVIRONMENTAL CONSIDERATIONS • N/A IV. ALTERNATIVE RECOMMENDATION~S~ • The Council could decide to have Richfield provide its own food services inspections, beverage, lodging and public swimming pool inspections and plan check food services. The cost of hiring the staff necessary to provide the same level of services and administrative support would be more than our current expenditures, and would require a budget increase. V. ATTACHMENTS • .2009 City of Bloomington Food, Beverage,. Lodging and Public Swimming Pool Inspection Contract. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None yD-~ AGREEMENT • .This Agreement is made this day of , 2009, by and between the City of Richfield (hereinafter referred to as "Richfield") and the City of Bloomington (hereinafter referred to as "Bloomington"). WHEREAS, Richfield is authorized and empowered to provide for various types of environmental health inspections and code enforcement to ensure the public health, welfare and safety; and WHEREAS, it is the desire of the parties and the purpose of this agreement that certain of-such services be performed by Bloomington on behalf of Richfield; NOW, THEREFORE, in consideration of the mutual covenants -and conditions set forth below, the above parties hereto agree as follows: 1. The term of this agreement shall be from January 1, 2009 through December 31, 2009, subject to termination as provided in paragraph 7. 2. For the term of this agreement, Bloomington shall provide Richfield with the • following services, in and on behalf of Richfield: a. Food service inspections and code enforcement as necessary. A minimum of two inspections will be done of all "high risk" restaurants and at least one inspection will be done of all grocery stores. "Low risk" packaged food establishment will be inspected once per 24 months and "medium risk" food services establishments once per year. b. Plan Check for food services. c. Public swimming pool inspections as necessary. d. Lodging inspections as necessary. 3. Bloomington shall have control over the manner in which the inspections, plan review and code enforcement activities are conducted and over the determination of what enforcement action is appropriate and consistent with Richfield City Code Section 615 and other policies as established by the City of Richfield. 4. Bloomington shall assume the expense of performing the inspections and code enforcement. 4o-a 5. In 2008, Richfield shall pay Bloomington the sum of NINETY THOUSAND, . THREE HUNDRED AND NO/100 DOLLARS ($90,300) for services provided pursuant to this agreement. One-half of this amount shall be due on June 30, 2009, and the remainder shall be due on November 30, 2009. 6. This agreement shall terminate as follows: a. Upon the expiration of 30 days after service of written notice upon the other party; or b. At any time, upon agreement of the parties; or c. In any event on December 31, 2009. 7. In the event of a termination prior to December 31, 2009, a prorata reduction of the compensation owed by Richfield to Bloomington shall occur which reflects the period remaining on the agreement at the time of termination. 8. Bloomington agrees to defend, indemnify and hold harmless Richfield, and its officials, agents and employees from and against all claims, actions, damages, losses and expenses arising out of or resulting from Bloomington's performance of the duties required under this Agreement, provided that any such claim, action, damage, loss or expense is attributable to bodily injury, sickness, disease, or death or to the injury to or destruction of property including the loss of use resulting therefrom and is caused in whole or in part by any negligent act or omission or willful misconduct of Bloomington. This provision shall not be construed as a waiver by either party of any defenses, immunities or limitators on liability with respect to claims made by third parties. 9. Richfield agrees to defend, indemnify and hold harmless Bloomington, and its officials, agents and employees from and against all claims, actions, damages, losses and expenses arising out of or resulting from Richfield's performance of the duties required under this Agreement, provided that any such claim, action, damage, loss or expense is attributable to bodily injury, sickness, disease, or death or to the injury to or destruction of property including the loss of use resulting therefrom and is caused in whole or in part by any negligent act or omission or willful misconduct of Richfield. This provision shall not be • construed as a waiver by either party of any defenses, immunities or limitators on liability with respect to claims made by third parties. ~ D-3 10. Bloomington shall carry liability insurance in the amount of at least $300,000 per • individual and $1,000,000 per occurrence. Bloomington shall carry property damage liability insurance in the amount: of $100,000. Richfield shall be named as an additional insured, and a certificate of said insurance shall be provided to Richfield. Bloomington shall carry Worker's Compensation Insurance as required by Minnesota Statutes, Section 176.181, Subd: 2 and further agrees to provide a certificate of said insurance to the Richfield. 11.Any employee assigned by Bloomington to perform its obligations hereunder shall remain the exclusive employee of Bloomington for all purposes including, but not limited to, wages, salary and employee benefits. 12. In addition to the services listed in Paragraph 2 above, Bloomington shall, upon request, also provide for and on behalf of Richfield: a. Lead inspections and lab services; b. Housing and grossly unsanitary dwellings inspections and code enforcement services;. • c. Mold inspection and code enforcement services; and d. Noise inspection and code enforcement services. Such services shall be paid for by Richfield on an hourly basis at the rate of $60.00 per hour, and said hourly rate shall be separate from, and in addition to, the payment provided for by Paragraph 5 of this Agreement. All other provisions of this Agreement shall remain applicable with respect to the lead, housing, mold and noise inspection services being provided. 13. It is agreed that nothing herein contained is intended or should be construed in any manner as creating or establishing the relationship of co-partners between the parties hereto or as constituting the persons employed by Bloomington as the agent, representative or employee of Richfield for any purpose or in any manner whatsoever. Bloomington is to be and shall remain an independent contractor with respect to all services performed under this contract. Bloomington represents that it has, or will secure i at its own expense, all personnel required in performing services under this contract. Any and all personnel of Bloomington or other persons, while engaged in the performance of ~!D-4 any work or services required by Bloomington under this contract, and shall not be • considered employees of Richfield ,and any and all claims that may or might arise under the Workers' Compensation Act of the State of Minnesota on behalf of said personnel or other persons while so engaged, and any and all claims whatsoever on behalf of any such person or personnel arising out of employment or alleged employment including, without limitation, claims of discrimination against Bloomington, its officers, agents contracts or employees shall in noway be the responsibility of Richfield; and Bloomington shall defend, indemnify and hold Richfield, its officers, agents and employees harmless from any and all such claims regardless of any determination of any pertinent tribunal, agency, board, commission or court. Such personnel or other persons shall not require nor be entitled to any compensation, rights or benefits of any .kind whatsoever from Richfield, including, without limitation, tenure rights, medical and hospital care, sick and vacation leave, Workers' Compensations, Unemployment Compensation, disability, severance pay and PERA. 14. The books, records, documents,. and accounting procedures of Bloomington • relevant to this Agreement, are subject to examination by Richfield and either the legislative or state auditor as appropriate, pursuant to Minnesota Statutes, Section 160.05, Subd. 5. 15. This Agreement represents the entire Agreement between Bloomington and Richfield and supersedes and cancels any and all prior agreements or proposals, written or oral, between the parties relating to the subject matter hereof, any amendments, addenda, alterations, or modifications to the terms and conditions of this Agreement shall be in writing and signed by both parties. 16. Bloomington and Richfield agree to comply with the Americans With Disabilities Act and not to discriminate on the basis of disability in the admission or access to, or treatment of employment in its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all services, programs, and activities. Bloomington has designated coordinators to facilitate compliance with the Americans With Disabilities Act of 1990 (ADA), as required by Section 35.107 of the U.S. Department of Justice regulations, and to coordinate compliance with • Section 504 of the Rehabilitation Act of 1973, as mandated by Section 8.53 of the U.S. Department of Housing and Urban Development regulations. For information contact ~I D-S n U Human Services Division, City of Bloomington, 1800 West Old Shakopee Road, Bloomington, Minnesota 55431; telephone: 952/563-8700; TDD: 563-8740. Richfield agrees to hold harmless and indemnify Bloomington from costs, including but not limited to damages, attorney's fees and staff time, in any action or proceeding brought alleging a violation of ADA by Richfield. Bloomington agrees to hold harmless and indemnify Richfield from costs, including but not limited to damages, attorney's fees and staff time,' in any action or proceeding brought alleging a violation of ADA by Bloomington. 17. The City of Bloomington and the City of Richfield agree to submit all claims, disputes and other matters in question between the parties arising out of or relating to this Agreement to mediation. The mediation shall be conducted through the Mediation Center, 1536 Hewitt Avenue, St. Paul, Minnesota, 55104. The parties hereto shall decide whether mediation shall be binding or non-binding. If the parties cannot reach agreement, mediation shall be non-binding. In the event mediation is unsuccessful, either party may exercise its legal or equitable remedies and may commence such action prior to the expiration of the applicable statute of limitations. 18. Both parties agree to comply with all applicable state, federal and local laws, rules and regulations. IN WITNESS WHEREOF, the parties have set forth their hands on the day and year r~ U first written above. Upon proper execution, this Agreement shall be a legal and binding obligation upon the City of Bloomington City Attorney CITY OF BLOOMINGTON By: Its Mayor By: Its City Manager CITY OF RICHFIELD By: Its Mayor By: Its City Manager • AGENDA SECTION: AGENDA ITEM # REPORT # J STAFF REPORT CITY COUNCIL MEETING NOVEMBER 25, 2008 CONSENT 276 REVISED REPORT PREPARED BY: CHRISTINE COSTELLO, COMMUNITY DEVELOPMENT SPECIALIST NAME, TITLE • • DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: SIGNATURE ITEM FOR COUNCIL CONSIDERATION: Consideration of awarding a contract for demolition of 6645 17th Avenue. L RECOMMENDED ACTION: By Motion: Accept bid and award contract for demolition of 6645 17th Avenue to K.A. Kamish Excavation II. BACKGROUND In September 2005 the City of Richfield and the Metropolitan Airports Commission (MAC) entered into an agreement for the purchase of eight single-family properties on the east side of the 6600 block of 17th Avenue. The agreement called for the City to purchase the first four (6601, 6609, 6615, 6621 17th Avenue) and for MAC to purchase the remaining four properties (6627, 6633, 6639, 6645 17th Avenue). Under the FAA Part 150 Program, MAC had the option to either soundproof or acquire the properties to mitigate for airport noise impacts. MAC decided to purchase the four properties. The City also purchased their four properties for street purposes. All the properties have been removed except the property at 6645 17th Avenue, which was the last remaining property to be negotiated for acquisition. The property at 6645 17th Avenue was purchased in October 2008. Staff subsequently received three bids for the demolition of the home.. These bids originally ranged from $10,220 to $18,000. K.A. Kamish Excavation submitted the lowest bid. Since bids were received, however, an asbestos survey was received 112508-REVISED Contract for Demo for 6645 17th Avenue indicating the presence of small traces of asbestos in the basement. The traces~of • asbestos were found in the pipe wrapping, the heat shield above the furnace, and in the. the on the basement floor. K.A. Kamish Excavation received three bids for the removal of the asbestos that ranged from $2,700.00 to $3,400.00. With the lower bid for removal of the asbestos included in the contract amount the total dollar amount is revised to $12,920.00 from the original amount of $10,220.00 K.A. Kamish is still the lowest bidder because the alternate bidder, Frattalone, would have found the asbestos as well and if you estimated the same amount for the removal on their proposed bid amount it would be approximately $15,608.00 III. BASIS OF RECOMMENDATION A. POLICY • The City will retain ownership of all the properties until redevelopment . takes place. B. CRITICAL ISSUES • Demolition and removal of the house and garage must be completed within 60 days from the signing of the contract. • The- house is not suitable to rent because it never received airport noise attenuation, therefore it can not withstand the effects of airport noise. C. FINANCIAL • Three bids were obtained and they ranged from $12,920.00 to $18, 000.00. • K.A. Kamish Excavation is the lowest bidder at $12,920.00, which includes the removal of the asbestos. • Frattalone is the alternate bidder at $12,908.OO,,not including removal of asbestos. • The funds used for the demolition are from residual airport acquisition funds. • MAC paid for 98% of the acquisition/relocation costs, while the City paid .for the remainder with residual airport acquisition funds. D. LEGAL • The City is required to accept the lowest, qualified bidder. • The City is allowed to identify the successive, qualified lowest bidder in order to ensure timely commencement and completion of the specified work. E. ENVIRONMENTAL CONSIDERATIONS • Environmental abatement work is part of the demolition contract and will need to be completed before demolition occurs. • .The house and garage will be relocated to another community that does not have airport noise issues, since the house and garage are sound single-family construction. TERNATIVE KECOMMENDATION(S) ~ The City may choose to reject the bids and direct staff to obtain new bids; however, the prices received for this work are considered competitive and fair. Staff does not believe lower prices can be obtained from a reputable contractor within the time frame needed. V. ATTACI-IlVIENTS • Contract with K.A. Kamish Excavation • Aerial map VL PRINCIPAL PARTIES EXPECTED AT 1VIEETING • N/A • • CONTRACT FOR DEMOLITION OF ASINGLE-FAMILY HOUSE THIS CONTRACT is made and entered into this day of November, 2008, by and between. K.A. Kamish Excavation, Inc. (the "Contractor") and the City of Richfield, State of Minnesota. (the "City") (collectively, the "Parties"), for the removal/demolition of buildings and abatement of hazardous substances and materials of the property located at 6645 17th Avenue South, Richfield, MN. . RECITALS WHEREAS, the City requires the removal/demolition of buildings at 6645 17th Avenue South including among other items, the abatement of hazardous substances and materials (the "Work"). WHEREAS, the City has awarded the Work to the Contractor; WHEREAS, the Contractor represents that it has the necessary personnel, experience, competence, and legal right to perform the Work; NOW, THEREFORE, in consideration of the mutual obligations of the Parties hereto, each of them does hereby covenant and agree as follows: Section 1. Definitions "Asbestos" means any material containing more than one percent asbestos, which is friable, releasing asbestos fibers into the air, above current levels established by the United States Occupational Safety and Health Administration. "Contract" or "Agreement" means this agreement between the City and Contractor for the performance of the Work, together with all exhibits, amendments, or modifications to the Contract. "Destructive Report" means a hazardous materials- abatement inventory prepared to assist in establishing the scope of the Work. "Final Completion" means all items of the Work; "punch list items" and site work are completed and Contractor is eligible for Final Payment. "Hazardous Materials" means asbestos,- PCBs, petroleum hazardous waste, radioactive material, or any other hazardous materials or hazardous wastes within the meaning of City, State of Minnesota, or Federal definitions of hazardous materials or hazardous waste. "Owner" means the City of Richfield, Minnesota. "Property" means 6645 17th Avenue South; Richfield, MN. 314396v2 MTN RC125-1 1 "Substantial Completion" means the time at which the City determines that the Work has progressed to a point where it is sufficiently complete, leaving only minor "punch list" and close out items and other minor site work required to be completed for full payment of the contract price. "Work" means the entire completed demolition, abatement of hazardous materials, and all other activities to be .performed by Contractor on the Property as provided for in the Contract. Section 2. General Requirements 2.1. Rights of the City. The City reserves the right to reject any or all proposals or parts of proposals, to accept part or all of proposals on the basis of considerations other than lowest cost, and to create a project of lesser or greater. expense and reimbursement than described in this Contract. The City also reserves the right to cancel the Contract without penalty, if circumstances arise which prevent the City from completing the project. In the event of any conflict between the General Conditions and this Contract, this Contract shall control. 2.2. Interest of Members of City. The Contractor agrees that no member of the governing body, officer, employee, or agent of the City shall have any interest, financial or otherwise, direct or indirect, in the Contract. 2.3. Equal Opportunity Statement. Contractor agrees to comply with the provisions of all applicable federal, state, and City of Richfield statutes, ordinances, .and regulations pertaining to civil rights and nondiscrimination including without limitation Minnesota Statutes, Section 181.59 as amended, incorporated herein by reference. 2.4. Transfer of Interest. The Contractor shall not assign any interest in the Contract, and shall not transfer any interest in the same either by assignment or novation, without the prior written approval of the City, provided,. however, that claims for money due or to income due to the Contractor may be assigned to a bank, trust company, or other financial institution, or to a Trustee in Bankruptcy without such approval. Notice of any such assignment or transfer shall be furnished to the City. Notwithstanding the foregoing, Contractor shall be entitled to use subcontractors to perform the Work. 2.5. Independent Contractor. Nothing contained in this agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The Contractor shall at all times remain an independent contractor with respect to the services to be performed under this agreement. The City shall be exempt from payment of all Unemployment Compensation, -FICA; retirement, life and/or medical insurance and Workers Compensation Insurance as the Contractor is an independent contractor. • 2.6. Hold Harmless. The Contractor agrees to defend, indemnify and hold harmless the City, its officers and employees; from any liabilities, claims, damages, costs, 314396v2 MTN RC125-1 2 judgments, and expenses, including attorney's fees, resulting directly or indirectly from an act or omission of the contractor, its employees, its .agents, or employees of subcontractors, in the performance of the services provided by this contract or by reason of the failure of the contractor to fully perform, in any respect, all of its obligations under this Contract. 2.7. Accounting Standards. The Contractor agrees to maintain the necessary source documentation and enforce sufficient internal controls as dictated by normally accepted accounting practices to properly account for expenses incurred under this contract. 2.8. Retention of Records. The Contractor shall retain all records pertinent to expenditures incurred under this Contract for a period of three years after the resolution of all audit findings.. Records for non-expendable property acquired with funds under this contract shall be retained for three years after final disposition of such property. 2.9. Disclosure. The Contractor agrees to comply with the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13, and all other applicable state and federal laws relating to -data privacy or confidentiality, as those laws may be amended. The Contractor shall immediately report to the City any requests from third parties for information relating to this agreement. All data created, collected, received, stored, used, maintained, or disseminated by the Contractor in performing its obligations is subject to the requirements of the Act, and the Contractor must comply with those requirements as if it were a government entity. The City agrees to promptly respond to inquiries from the Contractor concerning data requests. The Contractor agrees to hold the City, its officers, department heads and employees harmless from any claims resulting from the Contractor's failure to disclose data maintained by tl~e Contractor and authorized for release by the City, and from Contractor's unlawful disclosure or use of data protected under state and federal laws. Section 3. Contract Price 3.1. Upon compliance with all the requirements of this Contract, Contractor shall be paid the Contract Price of $12,920.00, pursuant to Section 28 of this Contract. Section 4. Project Schedule 4.1. .Contractor shall commence the Work on or after contract execution and Substantial Completion of the Work shall be achieved no later than sixty (60) days thereafter. Section 5. Local Permit Requirements and Related Submittals 5.1. Contractor shall obtain permits required by the City of Richfield, including a plumbing permit (for water & sanitary sewer disconnects) and a demolition permit. Questions about these permits, permit fees, and the scheduling process for the required inspections should be directed to the Building Inspections Department at Richfield City 314396v2 MT'N RC125-1 3 Hall (612-861-9816).. Contractor has not been provided a copy of an abatement hazardous materials inventory ("Destructive .Report"). ..The Destructive Report is not intended by the City to limit the activities of the Contractor, but to assist the Contractor in assessing the scope of the Work for. purposes of complying with its obligations under this Agreement. 5.2. Upon completion of the Work, Contractor shall provide: - Copies of any permits required by government agencies other than the City of Richfield, such as transport or disposal permits. - Copies of any test results required by government agencies other than the City of Richfield, including but not limited to testing required as part of the asbestos abatement process. - Copies of all landfill records indicating receipt and acceptance of hazardous wastes by a landfill licensed to accept hazardous wastes. Section 6. Job Conditions -General 6.1. Contractor will disconnect and abandon utilities serving the Property, including water, sanitary sewer, electricity, gas and telecommunications; or arrange for disconnection and abandonment of same. Contractor shall not begin work before field- verifying that disconnection and abandonment has been completed. 6.2. Owner shall ensure that the buildings will be vacated and use of the property will be discontinued prior to start of work. 6.3. Owner assumes no responsibility for actual condition of structures to be demolished. Conditions existing at time of inspection for bidding purposes will be maintained by Owner to the extent practicable. Contractor may salvage any and all materials and equipment from the Property. Variations within structures may occur due to removal and salvage operations prior to the start of demolition work. 6.4. This is a lump sum contract. Contractor must immediately contact Owner prior to exceeding the Contract Price set out in Section 3.1. Change orders for additional payment will not be granted due to the Contractor underestimating quantities of material(s). 6.5. Contractor shall provide all labor, materials, equipment, employee training, compliance with all regulations, permits, notifications, licenses and agreement necessary to perform the work described in this Contract. 6.6. All materials from undertaking the Work shall become the property and responsibility of the Contractor. 314396v2 MTN RC125-1 4 6.7. Contractor may choose to salvage materials and. equipment. Any salvaged items must be removed from the Property in a timely manner as they are salvaged. On site storage or sale of salvaged- items is prohibited. 6.8. The use of explosives and on site burning by the Contractor are prohibited. 6.9. Contractor shall provide water, electricity, communications and toilet facilities on site as necessary to complete the work. 6.10. Contractor shall provide and maintain uninterrupted vehicular access to the Property, including temporary demolition facilities, storage and work areas, for not only persons and equipment involved in the project but also emergency vehicles. 6.11. Contractor shall keep fire hydrants and water control valves free from obstruction and accessible for use. 6.12. Contractor shall take all necessary safeguards to prevent damage or injury to neighboring property. 6.13. Prior to closing or rerouting existing traffic lanes or sidewalks in any public street easement or right-of--way adjacent to streets, the Contractor shall obtain written permission from the City Engineer. Expenses related to lane closures, including but not limited to traffic barriers, signs and similar equipment as well as traffic control personnel, shall be the responsibility of the Contractor. Section 7. Asbestos Abatement 7.1. Contractor shall remove and properly dispose of all friable and category 2 non- friable asbestos containing materials and complete asbestos abatement on the Property in accordance with Minnesota Pollution Control Agency regulations and the Destructive Report identified in Section 5.1 of this Contract. 7.2. Contractor shall decontaminate and encapsulate the work area prior to final clearance and air monitoring. 7.3. Contractor shall provide final cleanup and removal of all remaining temporary barriers, equipment and supplies. 7.4. Contractor shall provide all monitoring and analysis of air samples as required by state and federal regulations. 7.5. Contractor shall complete final clearance and air monitoring as required by state and federal regulations. Section 8. Other Hazardous Materials Abatement. 314396v2 MTN RC125-1 5 . Pursuant to Minnesota Pollution Control Agency regulations (and the Destructive Report), Contractor shall remove and properly dispose of the following materials and. items from the Property: 8.1. Mercury: a. Batteries: Smoke detectors, emergency lighting, exit signs, security systems and alarms. b. Lighting: Fluorescent lights and bulbs; high intensity discharge lights (metal halide, high pressure sodium, mercury vapor and neon); switches and controls for lighting. c. Heating, Ventilating and Air Conditioning Systems: controls, devices, thermostats, aquastats, pressurestats, firestats, manometers, thermometers. d. Boilers, Furnaces, Heaters and Tanks: Mercury flame sensors by pilot lights; manometers, thermometers, gauges, pressure-trol, float and level controls, space heater and unit ventilator controls. e. Electrical systems: Load meters and supply relays, phase splitters, microwave relays and mercury displacement relays. f. Miscellaneous: All vacuum, pressure, fluid level, temperature and flow. rate control boxes and panels. g. Any electrical wiring from .fixtures or equipment being removed for abatement shall be capped. 8.2. Poly-Chlorinated Biphenyls (PCBs): Transformers, transistors, capacitors, heat transfer equipment, light ballasts. 8.3. Chlorofluorocarbons (CFCs) and Hydrochlorofluorocarbons (HCFCs): Fire extinguishers, air conditioners, walk-in coolers and freezers, water fountains and dehumidifiers, refrigerators/freezers/chillers, and heat pumps. 8.4. Miscellaneous: a. Hazardous waste including general-purpose cleaners, paints and thinners. b. -Oils including used oil and hydraulic oil indoor closers. c. Waterheaters: d. Space heaters. e. Air compressors and controls. f. Building unit ventilators. g. Radiators. h. Fuse boxes and electrical panels. 314396v2 MT'N RC125-1 i. Roof top exhaust .vents with motors. j. Boiler chemicals. k. Heating fuel tank, including contents, if any. Section 9. Demolition 9.1 Owner has not conducted any testing to determine the extent of lead based paint. Contractor shall conduct demolition in compliance with any state or federal regulations governing demolition of structures containing lead based paint. 9.2. Contractor shall use water sprinkling, temporary enclosures and other suitable methods to limit dust and dirt rising and scattering in air. Contractor shall comply with any and all governing regulations pertaining to environmental protection. Contractor shall not use water when it may create hazardous or objectionable conditions such as flooding or pollution. 9.3. Contractor shall clean ,adjacent structures and improvements of dust, dirt and debris caused by demolition operations and return adjacent areas to condition existing prior to start of work. 9.4. Contractor shall remove/demolish buildings, other structures, improvements, and landscaping completely and remove all debris from the Property. Contractor may use such methods as required to complete the work subject to the limitations of governing regulations. 9.5. Contractor shall proceed with removal/demolition in a systematic manner, from top of structures to ground, and will complete demolition work above each floor or tier before disturbing supports on lower levels. 9.6. Contractor shall locate demolition equipment throughout the building and remove materials so as to not impose excessive loads to supporting walls, floor or framing. 9.7. Contractor shall provide and maintain interior and exterior shoring, bracing or other structural support to preserve structural stability and prevent movement, settlement or collapse of the building. 9.8. Contractor shall break up any concrete slabs-on-grade and remove from the Property. 9.9. Contractor shall demolish footings, foundation walls, tunnels and other below- grade structures and remove from the Property. 9.10 .Contractor shall provide certificate of well abandonment if required. Section 10. Debris Control 314396v2 MTN RC125-1 '~ 10.1. Contractor shall maintain the Property free of extraneous debris. 10.2. Contractor shall prohibit overloading of trucks. to prevent spillage on access and haul routes. 10.3. Contractor shall maintain a sweeping and clean-up program to prevent deposition, release and disbursal of soils and debris onto paved surfaces. Section 11. Disposal 11.1. Contractor shall move from the Property all debris, rubbish and other materials resulting from demolition operations. 11.2. Contractor shall transport materials from the Property and legally dispose of them off-site in accordance with governing regulations. Section 12. Earthwork 12.1. Contractor shall rough grade the Property using clean fill after completing all abatement and demolition activities; taper edges of all excavated areas to minimize slope of 2 to 1, keeping soil disturbance to a minimum. Section 13. Excusable Delays 13.1. The following circumstances, and only these circumstances, will, at the City's discretion, be considered legitimate cause for a change in the commencement and/or completion dates specified in Section 4 of this Agreement: a. Material delay -- material delays that are beyond the control of the Contractor, which can be shown to have directly caused the overall late completion. b. Adverse weather and emergency conditions -- weather or emergency conditions that directly affect the scheduling of exterior work over a significant portion of the term of this Agreement. c. Strikes -- Contractors who face union work stoppage in the case where they have to rely on such a work force in order to complete the Work. d. Amendments -- amendments in the original scope of work, which can be reasonably shown to require an extension of the time allowed for completion. e. Other delays -act or neglect of the Owner, or of an employee of either, or of a separate contractor employed by the Owner, or by changes ordered in 314396v2 MT'N RC125-1 g the Work or by unavoidable casualties or other causes beyond the Contractor's control. Section 14. Change Order 14.1. The City shall have the right, within the general scope of the Work and without notice to any surety or sureties of the Contractor, if any, to make changes in the Work, either by altering the nature of the same or by adding to or deducting from it. All changes shall, except in the case of emergencies endangering the safety of persons or property, be made by written Change Order. The parties shall determine the effect of any Change Order on the Contract Price and project schedule by mutual agreement. The Contractor shall promptly comply with any and all written Change Orders. No such Change Order shall be deemed to invalidate the .remaining terms and conditions contained in the Contract. Section 15. Waiver of Liability 15.1 It is agreed that the Work is undertaken at the sole risk of the Contractor. The Contractor does expressly forever release the City of Richfield from any claims, demands, injuries, damage actions, or causes of action whatsoever, arising out of or connected with the Work. Section 16. Indemnification 16.1. Any and all claims that arise or may arise as a consequence of any act or omission on the part of the Contractor, its agents, servants, or employees while engaged in the performance of the Work shall in no way be the obligation or responsibility of the City. of Richfield. -The Contractor shall indemnify, hold harmless, and defend the City of Richfield, its commissioners, council members, officers, employees, successors, and assigns against .any and all liability, loss, cost, damages, expenses, claims, or actions, including attorney's fees which the City of Richfield, its commissioners, council members, officers, or employees may hereinafter incur or be required to pay on account of injury to or death of any person or persons or damage to any property arising out of or by reason of any act or omission of the Contractor, its agents, servants, or employees in the .execution, performance, or failure to adequately perform its obligations under this Agreement, whatever the cause of such injuries or damage. Section 17. Insurance 17.1. The Contractor. agrees that in order to protect itself, the City of Richfield under the .indemnity provisions set forth in' Section 16 of this Agreement, it will at all times during the term of this Agreement, maintain, at a minimum, the following insurance policies: a. Workers Compensation Insurance. The Contractor shall maintain worker's compensation insurance in compliance with all applicable statutes 314396v2 MT'N RC125-1 9 including Chapter .176 of the Minnesota .Statutes. Such policy shall include Employer's Liability Coverage and at least such amount(s) as are customarily provided in worker's compensation policies issued in Minnesota. Contractor further agrees to require .all subcontractors and independent contractors to maintain worker's compensation insurance in compliance with all applicable statutes and to monitor the .compliance of such subcontractors and independent contractors with the applicable statutes. b. Commercial General Liability Insurance. The Contractor shall maintain Occurrence Based Commercial General Liability Insurance ("CGL"), providing coverage on an "occurrence", rather than on a "claims made" basis, which policy shall include coverage for the Completed Operations Hazard, and which shall also include a Broad Form General Liability Endorsement, ISO number GL 0404, or an equivalent form (or forms), so long as such an equivalent form (or forms). affords coverage which is in all material respects at least as broad. Any equivalent form (or forms) of coverage shall be approved by the City. The Contractor agrees to maintain total liability policy limits of at least One Million Dollars ($1,000,000), applying to liability for Bodily Injury, Personal Injury, and Property Damage, which total .limits may be satisfied • by the limits afforded under its Occurrence Based CGL policy as specified above, or by such policy in combination with the limits afforded by an Umbrella Liability Policy (or policies) provided, however, that the coverage afforded under any such Umbrella Liability Policy shall be at least as broad as that afforded by the underlying occurrence based CGL Policy as specified above. c. Automobile Liability Insurance. The Contractor shall maintain automobile liability insurance covering liability for Bodily Injury and Property Damage .arising out of the ownership, use, maintenance, or operation of all owned, non-owned, and hired automobiles and other motor vehicles. Such policy shall provide total liability limits for combined Bodily Injury and/or Property Damage in the amount of at least One Million Dollars ($1,000,000) per accident, which total limits may be satisfied by the limits afforded under such policy, or by such policy in combination with the limits afforded by an Umbrella Liability Policy (or policies) provided, however, that the coverage afforded under any such Umbrella Liability Policy shall be at least as broad as that afforded by the underlying automobile liability insurance policy. The City of Richfield shall be named as "additional insured" parties with respect to the insurance policies specified in (b) and (c) above.. The Contractor shall not commence work until a Certificate of Insurance evidencing all of the insurance policies required above is approved and a written Notice to Proceed is issued by an authorized 314396v2 MT'N RC125-1 1 ~ representative of the City. The City shall, at any time during the term of this agreement, have the right to require that the Contractor secure any additional insurance, or additional feature to existing insurance, as the City may reasonably require for the protection of its interests or those of the public. It is expressly understood that the City does not in any way represent .that the" minimum insurance coverage set forth in this paragraph is sufficient or adequate to protect the interest or liabilities of the Contractor. Section 18. Bond 18.1... No payment or performance bonds for the Work shall be required pursuant to Minn. Stat. § 574.26. (Option to require bonds.) Section 19. Lien Waiver 19.1. Neither the Contractor nor any subcontractor or other person or entity furnishing labor, equipment, or materials in connection with the Work shall file any mechanic's lien against the City's buildings, structures or land or any part thereof, provided that the City makes all payments due to Contractor under this Contract. The Contractor shall protect, defend, indemnify, and hold harmless the City of Richfield from any and all claims, demands, or actions of whatever nature arising out of work, labor, equipment, or materials furnished by the Contractor or its subcontractors in connection with the Work, provided that the City makes all payments- due to Contractor under this Contract. Payment of the Contract Price shall not be due until the Contractor has delivered to the City lien waivers acceptable to the City, which release the City from all liens that may arise in connection with the Work. The Contractor shall list on the attached Exhibit A the names of all suppliers and/or subcontractors that will provide materials, services, or labor in connection with the Work. The Contractor will notify the City. of any changes in this list prior to the commencement of the Work. Section 20. Subcontractors 20.1. Contractor agrees to bind every subcontractor by the terms, conditions, and provisions set forth in the Contract that are applicable to the subcontractor's work, unless otherwise specifically agreed otherwise in writing by the City. Section 21: Assignment 21.1. This Contract shall be binding upon the Contractor, its legal representatives, heirs, successors, and assigns. No assignment or attempted assignment of this Contract or any rights hereunder shall be effective unless the written consent of the City is first obtained. No such assignment, even if consented to by the City, shall relieve the Contractor from liability under this Contract for the performance and completion of the Work in accordance with the Contract. Notwithstanding the foregoing, Contractor shall be entitled to use subcontractors to perform the Work: • Section 22. Entire Agreement 314396v2 MTN RC125-1 11 • 22.1. The .Contract contains all the terms, conditions, and provisions pertaining to the Work to be completed by the Contractor, there being no other understandings, agreements, or warranties, express or implied. ,All prior negotiations and dealings regarding the subject matter of the Agreement are superseded by and merged into the Contract. Section 23. Applicable Law 23.1. This Contract shall be construed in accordance with and governed by the laws of the state of Minnesota. Section 24. Amendment 24.1. This Contract may be modified or amended only with the written approval of the City and the Contractor. Section 25. Construction 25.1. In the event that any one or more of the provisions of this Contract, or any application thereof, shall be found to be invalid, illegal, or otherwise unenforceable, the. validity, legality, and enforceability of the remaining provisions or any application • thereof shall riot in any way be affected or impaired thereby. Section 26. Authority 26.1.. Each of the undersigned parties warrants that it has the full authority to execute this Contract, and each individual signing this Contract on behalf of a corporation hereby warrants that he or she has full authority to sign on behalf of the corporation and that he or she represents and binds such corporation thereby. Section 27. Waiver 27.1. No failure by the City to insist upon the strict performance of any covenant, duty, agreement, or condition contained in this Agreement or to exercise any right or remedy consequent upon a breach thereof shall constitute a waiver of any such breach or any other covenant, agreement, term, or condition, nor does it imply that such covenant, agreement, term, or condition may be waived again. Section 28. Payments to Contractor and Completion 28.1. The Contractor shall be paid upon completion of the Work in accordance with the payment schedule of the City, if any, and this section. 28.2. Application for Pam. Prior to receiving payment for Substantial Completion of the Work, the Contractor shall in writing state that the respective portion of the 314396v2 MTN RC125-1 12 • Work has been substantially completed and is free and clear of all liens. as provided in this Contract. Upon Substantial Completion and inspection and verification by the City, the payment for that portion of the Work shall be made. Final payment shall be made when Contractor certifies that Final Completion has been achieved and verified by the City. IN WITNESS WHEREOF, the parties have caused this Contract to be duly executed in their names and behalves and on or as of the date and year first above written. THE CITY OF RICHFIELD [, • By Debbie Goettel Its Mayor By Steven L. Devich Its City Manager 314396v2 MT'N RC125-1 13 LJ CONTRACTOR By Its • • THIS INSTRUMENT DRAFTED BY: Kennedy & Graven, Chartered (MTN) 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 (612) 337-9300 314396-v1.DOC 314396v2 MTN RC125-1 14 By Its . EXHIBIT A LIST OF SUPPLIERS AND SUBCONTRACTORS • • 314396v2 MTN RC125-1 A-1 Location of 6645 17th Avenue South • 66th Street East ~ o ~ ~ ~ o ~ a~ ~ a~ ~ c ~ ~ c Q a ~ ti ~ 67th Street East 0 65 130 260 390 520 Feet • AGENDA SECTION: Consent AGENDA ITEM # OFF REPORT # 277 ~' STAFF REPORT CITY COUNCIL MEETING NOVEMBER 25, 2008 • C7 REPORT PREPARED BY: DEPARTMENT DIRECTOR REVIEW: REVIEWED.BY CITY MANAGER. RANDY HUGHES, OPERATIONS SUPERINTENDENT NAME Ti7zs ITEM FOR COUNCIL CONSIDERATION: Status of the City Maintenance Facility project and consideration of 152 change orders for City of Richfield Maintenance Facility . I. RECOMMENDED ACTION: By Motion: Approve 152 change orders less than $25,000.00 made durin the construction of the Cit Maintenance Facilit II. BACKGROUND The City Maintenance Facility project is substantially completed. The remaining contingency for the project is over $80,000. The facility's new systems especially, the Heating Ventilation and Air Conditioning, continue to be tested and the commissioning process continues. The Construction Manager on the project, Gundlach-Champion, arranged 28 separate contracts for the project. To date the City Council has approved not only the contracts, but also five change orders in excess of $25,000. The Council was informed of the status of the contingency with each of the approved contracts, change orders and payments. The City Attorney recently informed staff that all of the change orders, even those for less than $25,000 should be approved by the City Council because they are changes to a council approved contract. All of the change orders, therefore, on the project are attached for Council consideration. During the course of the project, SEH, Gundlach-Champion and City staff reviewed 243 change order requests from 28 different contractors. Of these, 152 were 1125GarageCO approved by staff and five (which were over $25,000.00) were brought to the Council for approval. (PCO, 029, 031, 100, 152, 202). • The attached documents are a brief summary of the change orders implemented during the project.. They are grouped in packets labeled "change order #1 through change order #8". The funding for the change orders has been deducted from the contingency fund as the project has progressed. The cover sheet on each packet of change orders tracks the contingency fund. balance. The contingency when the project began was $764,270.00. After the items adjusted in change order #8 are approved, the contingency will stand at $181,682.01. However, the $96,858.87 for Voice-Over IP equipment previously approved by the Council will still have to be deducted from that balance. Staff had originally requested that Gundlach-Champion list this expense as a change order, but because -the vendors for the equipment were-not paid through Gundlach-Champion, it is being deleted as a change order to correct their bookkeeping. If Council has questions on any items, backup documentation can be furnished with more details of the change orders. The City Council could chose to approve all the change orders except those for which there is a need for additional back-up information. A representative from SEH will be available to answer questions. III. BASIS OF RECOMMENDATION i A. POLICY • Change orders to contracts approved by the Council must also be approved by the Council. B. CRITICAL ISSUES • This work has been done and most of these change orders have been invoiced and paid. C. FINANCIAL • The contingency fund for the project started with $764,270.00. • Council has approved $193,103.95 worth of change order expenses and one change order for a credit of $25,000.00 to date. • With approval of the change orders on the attached list there will be $181,682.01 left in the contingency. The contingency will be charged the $96,858.07 for voice over IP equipment but not through Gundlach- Champion billing process. • The total of all the change orders under consideration is $486,343. D. LEGAL • None E. ENVIRONMENTAL CONSIDERATIONS • Many of the change orders relate directly to the mechanical systems and energy efFiciency of the Maintenance Facility. IV. ALTERNATIVE RECOMMENDATION(S~ • Approve some change orders and bring back more documentation for any change orders with questions. V. ATTACHMENTS • All change orders processed for the new maintenance facility. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Stan Owens, SEH • yF-1 CHANGE ORDER Owner: City of Richfield Change Order No.: #001 Construction Manager: Gundlach Champion, Inc. Change Order Date: 12-17-07 Project Description: Miscellaneous Extra Work (See Attached Summary) Section I. Describe the Work: Section II. ADJUSTMENT TO BUDGET Original Budget $11.580,000.00 Previous Change Orders #0 through #0 $ 0.00 This Change Order $ 0.00 New Budget $11,580,000.00 • 2. ADJUSTMENT TO CONTINGENCY Original Contingency $ 764,270.00 Previous. Change Orders #0 through #0 $ 0.00 This Change Order ($ 43.415.10) New Contingency $ 720.854.90 3. .ADJUSTMENT TO CONTRACT TIME X Contract Time is Unchanged Contract Time is Adjusted Original Date of Substantial Completion 6/20/08 Previous Change Orders #0 through #0 0 days This Change Order 0 days New Date of Substantial Completion 6/20/08 Upon execution of this document by both parties, the Agreement is modified by, but only to the extent of, this Change Order, which becomes a part of the Contrsct Documents and is subject to the terms and conditions of the Agreement. Gundlach Champion, Inc. is directed to make the change in the work described above. Gundlach Champion, Inc. shall keep accurate records of the services, labor and materials used to perform the described Work and shall include the cost of such change in its next application for payment in a separate line item. GUNDLACH CHAMPION, INC. By: Title: Vice President Administration Date: 12-17-07 OWNER: By: Title: Date: ARCHITECT: By: Title: ' Date: N O ti O V ~ •~ ~, o ~ N ~ T ~ ~ ~ L ^~ Y Q w N ~ •~ ~ .~ ~ ~ Cq cY. t4 ~a T v d ~_ O Q' C ip. ~ .~ V M U ~ o ~r- t1 1 0 0 0 ~ o 0 0 0 0 0 0 0 ~ o F- f- .o 00 0 0 0 0 0 00 0 0 0 0 0 ~ ~,1 ,j 0 r O O r r O r O r O r O r O r O O r r O r O r O r O r O ~ ° " r ~ w s a v ~z ~© ~ ~ ~ ~ }- F Q Z U ~ J O a ~ ~ d Q ~ ~ ~ ~ cfr sg ~ ss ~ s4 ea cfr ff3 tfi~ ss rfr D o o v .-. o0 o v o 0 o O o 0 0 0 0 ~ o o~ w o t- o 0 0 0 o co cn o 0 ~ -1 ~ N 00 N ~ c~7 O CO CO 'cf• 'd' co ~ fD O O Z J M M M CO aD O 1~ ti O r I,f) (~ O a0 O ~ m M to O N N N ct N ~ O7 M r to to ~ Q N of N O r- ch T ~ cV o vi ~ v ~ a ~ ~ ~ ~~ ~ ~ ~ ~ ~~ ~ ~ ~• 0 0 0~ ~ o ~ o 0 00 0 ~ o o 0 W -~ LL! ~!) M N O M M N CO ~ O M O O I~ CO I` O ~h O r d' Ln M Imo- O o CO O O 07 O O ~= M to O N N N ~ N O O M r r O tp ~ 0 J N 01 O o0 r M r I~ t- N N O Oi W d N r ~ r r r ..r _ > ~ U ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ss ~ ~ ~ s~ ~ t~ J ~ N ~ .~+ ~ U N U ~ ~ U D7 C ~ O m f°' U ~ ~ c ,4; U) _ ~ ~ p ~ ..., f/1 ~ N ~ A ~ 'µ _-. O '+_ O ~ V ~ C 1 T U N ~ U V U LIJ ~ ~ _ ~ ~ ~ .. ~ ~ ~ ~ = W ~ C ' C • d I- ~ _ ~ ~ ~ ~ rn ~ ~ - m U3 ~ ~ ~ ~ to Z m m ~ a~ ` ~ ~ E c °~ Y ~ Z ~ as ~~ _ ~ ~ _ N j ~ U ~ ~ U ~ ~ Z Z ~ ~ Q m m O O ~ _ ~ .,'' O ~ ~ ~ m ~_ Z a~ ~ 0. W C ~ ~ E U v ~ v~ o ~, D ~ m ~' }O r l(} V d..'~ ''~ ~ r N F m o .6 U ~ ~- O ~ N O , C 3" •'- ~ U X O) ~ N C ~ ~ 'O N ~ ~ ~ ~ O O_ •` _ ` Q. 'a 0 O O 0 ~ ` v- ~ O O ~ C ~U >'' "O ~ +~ ' ~ ~ m ~ - o a. ~ C .a.+ ~ O w- fn .u C ~ O '_ ~ . N 'II U C "O O a- ~ Q ~ .~ ~ ~ *- ~ ~ m ~ a~ O N ~ C ~ ~ ~ ii U U a U r M t(~ Cf~ t~ ~ r r r r r M tC~ CO 1~ O O N C {6 (n O 'O ~ Q O '~ U N U .C U a~ ~ ~ c N L ~ O ~ N ~ Q m ~ U) ~ Cn ~ C (0 ~ .,., \Y ~ ~ ~ ~ ~ "O ~ ~ o o a i .aV~ ~ C Q ~ ~ 0 o Q ~ L fp ~ O U N N ~ M M ~ O r N M ~ t.[) T T r r r r ~~ _o ~i r M M 0 IM 'CI' t~ a~ w L d Z O a m L. c 0 a • u c. a .~ .~ ~{ F- 3 • CHANGE ORDER • „~ Owner: City of Richfield •-- Change Order No.: #002 Construction Manager: Gundlach Champion,. Inc. Change Order Date: 2-08-08 Project Description: Miscellaneous Extra Work (See Attached Summary) Section I. Describe the Work: Section II. 1. ADJUSTMENT TO BUDGET Original Budget $11.580.000.00 Previous Change Orders #1 through #1 $ 0.00 This Change Order $ 0.00 New Budget $11.580.000.00 2. ADJUSTMENT TO CONTINGENCY Original Contingency $ 764.270.00 Previous Change Orders #1 through #1 ($ 43.415.10) This Change Order ($ 104.624.88) New Contingency 3. ADJUSTMENT TO CONTRACT TIME X Contract Time is Unchanged Contract Time is Adjusted Original. Date of Substantial Completion 6/20/08 Previous Change Orders #1 through #1 0 days This Change Order 0 days New Date of Substantial Completion $ 616.230.02 6/20/08 Upon execution of this document by both parties, the Agreement is modified by, but only to the extent of, this Change Order, which becomes a part of the Contract Documents and is subject to the terms and conditions of the Agreement. Gundlach Champion, Inc. is directed to make the change in the work described above. Gundlach Champion, Inc. shall keep accurate records of the services, labor and materials used to perform the described Work and shall include the cost of such change in its next application for payment in a separate line item. GUNDLACH CHAMPION, INC. OWNER: By: By:_ Title: Vice President PreConstruction Title: Date: 2-08-08 Date: ARCHITECT: By: Title: ' Date: UF- y F, w z~ w va ~~ wp av cn z ~o ~a Z U Oa Qa D I- J Z J O m. Q wl a J W _ ~ V W ~ -i O 00 to U Z ca Z w~, 0 -r~ T O ti O sa` N ' Z L O ~t~ d 3 1J.. ~ V to Y W O p~ N ~ U ~ ~ g ~ U O °" a ,,,~ 4 L.V . ~' U ~ N N 0 a ,, ~ ~ ~ ~r ~ ~ cfr e3 c~ ~ ~ cfr ~ ~ ~ ~ 0 0 0 ~ o ~ ~t o rn o ti ~ o 0 0 moo ~ 0 0 00 0 ~ o ~ o 0 0 0 0 0 0 ~' N O ~ Ln O O to d' O Ln CO B O O N I~ ti M OD d' W ct ti d' 'cT c7' Cfl O M 1~ ti t[) ~ d' M of ~' d' tf> r tf) f~ d' N r ~' ~!' tf> M v N' ~ N r (A C~ Ci-? to 59 Ef} 4f? EH (~? ff? EA Ef3 E!? 69 E!} ~ ~ N y L U U U .C U U .c U L U ~ ..0. U U N f6 >'(n ~ O V U O O O O O >, U O (1~ w U c O ~ g m ~ ~ U ~ ~ N ~ ~ a> U ~ fl.Y ~ W W ~ ~ O N ~ ~ N W ~ ~ •~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ca c ~ ~ ~ a ~ g ~?. U ~ ~ ~ ~ g U s ~ o ~ $ z Z ~ ~ f c c .r c ~ N ~ l (6 O N > N ~ ~ k O ~ ~ L O ~ O L O t O r Q U 7 a U ~ ~ ~ ~ O ~ ~ C ~ ~ O •~ O .6 ~ ' a a ~ _ -_ ~ m ~ ~ . to O) O O ~- (II O •3 U ~ ~ Y J ~ ~ U a U3 ~ ~ ~.c j O ~ L c I ' . Y CII (/~ (B ~ ~ O O (Q ~ C O RS U L > ~ > L - ~ rn c C~ U ~ ~ x O O ~, ~ '. ~ ~' O (B ~ 0 L d p ~ C O O ~ N m .O IffI ~ L O J L ~ ~ ~ ~ fB N fn O _O . cb f f ` ' Q- ~ 'a ~ N ~ ~ C ~X O .~ ~ Q O ~' Q .V ~ ~ ~ ~ O '~ ~ cn c ~ L t ; ~ 2 ~ ~ ~ ~ > - ~ ~ .Q ~ ~ Y H ~( ~ a .~ c ci j > ~ ~ E U = ~ co c c ~ ~ ~ ~ ~ o° _ ~ ` N c~ C~ .`~ ~ ~- O N O O ~ to ~ p m ~N J ~ ~ _ ~~ ~ p O 0 7 O ~ , .~ D O ~~ QO L j i O~ C ` • ' ' ~ Q J ~ (6 ~ O W a ~ D W ~ ~ ~ Q . Q ~ ~ O d r Q ~ rn D ~ ~ ~ .c O o0 O O ~fJ CO I~ O Ln ti r N V f ~ ~- ~ N N N N N ~f' tq Cfl CC ,~ 0 0 0 0 0 0 0 0 0 0 0 0 ~ • ~ s N C'7 d' LC) CO 1~ O O ~ c- ~ ~ ~ I I; i- i I' 1- I fi` ~~ u ~F z Wu UO W a~ c fq ~ H F F- C Z L Oa ~a as c F- J ZJ Om ' Qw a W J W _ ~ U y W ~ ~O m ~ U Z • Z . !a ~ U 0 0 V d 1 ~ s a ,~ ~ Z i >+ o p ~ '~ I- a r ~ ~ ~ N Y ~ N O N p ~t U ~ ' d :~ ~~ ~ o ~ ~ ~~ ;~ ~, ~ . „O O ~ V . F U ~ N - N I - o N ' -~ c~ o. I~ ~ ~ ~~ ~ ~ ~ ~ ~ ~ ~ 0 0 0 00 ~ 0 0 0 0 0 0 0 0 0 00 ~ 0 0 0 ~ 0 0 O f` ('M oo f0 ~ C7 O ~t t~ O O ~.f) O Cfl O Op M 00 O O CO ~ r M ~ to ti ct• O ~ O •ct r N ~ I~ N ~ N N d' N v M t~ ~ ~ ~ ~ e3 ~ ~ ~ ~ ~ e3 O O U .~ U •U C U U 'C O p ~ O ~ O U ~ y O U N U ~ U w~ ~ a~ W w ~ ~ p U o UJ ~ p - ~ ~ ~ ~ ~ a: ~ ~ ~ ~ m c ~ ~ m = ~ ~ U ~ U ~ g ~ Z Z O •~ U L '00 ~ ~ O C N ~ 'T W U '" L ~ I ~ 1 .o- U ~ l ^ vI _ . L ~ O IYI^^ VJ ~ ~ Q . Q ~ ~ ~ O .1..1 . (0 .1~..1 ~. ~ W O .r+ ~ ~ i~ ~ Q Y ~ to C ~ ~ ~ ~ C O '>N L ~ c~ ~ 3 m~ ... ~ ~ o t~ c ~ ° ~ o ~ ° a ~ ~ ~ -a Q o ~ ~ c4 a i p 3 ~' a~ ~ ~ _ ~ Q ~ L ~ ~ 1 ~ ~ 1 O Z O~ ~ ~ ~ ~ •Q O ~ 0 0 O ~ j O s.. C ° N *k O o X~ ~~ O *k O ' o °~ o ~ n w no n.«° ~ ~,~ ~ • (6 0 • - 0 0 ~ ~ N O ~ O) O O ..r O ~ O f4 O ~ L O •N ~ cB ~_ ~ ~ a ~ o- ~ N ~~ ~ ~ ~ p o ~m ~ •~ ~ - ca ~~ ~ ~ o ~ N U ~ O ~ ~ ~ C ~ f6 (II ~ rC (B N > fQ O a j ~ N t0 U » ~ O O i ~ C O ~ ~~ N Q N ~ tp Q L N Q ( =, U m .. Q 3 _ 4: LL ~ ~ ~ ~ ~ ~ . O B O ~ ~ O O . ~ .~ ~ D m •~ O cn O C Cn 4. ~ O U w d 0 ~ 0~ O (n cn ~ Q ~ ~ ~ ~ M O ~ O ti M ~ ti ti ~ o o a O o 0 0 o 0 0 y r O ~ M O 0 N N N N d' 0 r d 7 O F N z d O d G R t U P is Sr .~ I!r% s ~I< U ~ I i '; f- y F-6 • CHANGE ORDER Owner: City of Richfield Change Order No.: #003 Construction Manager: Gundlach Champion, Inc. Change Order Date: 3-27-08 Project Description: Miscellaneous. Extra Work (See Attached Summary) Section I. Describe the Work: Section II. 1. ADJUSTMENT TO BUDGET Original Budget $11,580,000.00 Previous Change Orders #1 through #2 $ 0.00 This Change Order $ 0.00 New Budget $11.580,000.00 2. ADJUSTMENT TO CONTINGENCY Original Contingency $ 764.270.00 Previous Change Orders #1 through #2 • ($ 148,039.98) This Change Order ($ 109,201.19) New Contingency $ 507.028.83 3. ADJUSTMENT TO CONTRACT TIME X Contract Time is Unchanged Contract Time is Adjusted Original Date of Substantial Completion 6/20/08 Previous Change Orders #1 through #2 0 days This Change Order 0 days New Date of Substantial Completion 6/20/08 Upon execution of this document by both parties, the Agreement is modified by, but only to the extent of, this Change Order, which becomes a part of the Contract Documents and fs subject to the terms and conditions of the Agreement. Gundlach Champion, Inc. is directed to make the change in the work described above. Gundlach Champion, Inc. shall keep accurate records of the services, labor and materials used to perform the described Work and shall include the cost of such change in its next application for payment in a separate line item. GUNDLACH CHAMPION, INC. OWNER: By: By:_ Title: Vice President Administration Title: Date: 3-27-08 Date: ARCHITECT: By. Title: ' Date: yF-~ ~u z~ w~ UO ~~ W~ G. ~ N ~ =C HF z L On ga Qa ~~ ZJ Om Qw a 0 W W Q 2 ~ V W ~ J O m Z Q a~ tN~o Z Li O 0 ~{0 M Y ~^ s a` W ' Z O ,+_~' ~ ~ '~ a 7 LL ~ V L N ~ W o ^ M~ ~ ~ ~ ~ ~ o O (_ ~ 'O = iF O ~ ~ ~ W L V N F- U ~ c~ - ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ sg ~ ~ ~ ~ ss c~ ~ ~ O O O O O O O O Cfl O O O M O O O O O O ~ O ~ O 'd: O O O h• O O ~ d' O O ~' 00 O tt) CO ~ O L[1 r d' O O O ~ O ti O N 67 O O ~ O ~ O ~ M N d) O O d) M M O O In r N ti ~• N d' N M r ~ N d' M l!') II) N H} ER E~9 69 ~? Ef-} H3 EF} ER. Et} E!? E9 69 Eta EA N "~ ~ U U ~ C O N C O O N ~ ~ O L _ N U O f... •Q ~ U ~ L •Q N L N U ~ U C L C ~.., Cn U p ~ „_, (n .N U 0 ~ U U U O U O N L O ~ _ ~ U 0 ~ U O O ~ N L ~ O ~ ~ O L >J ~ = L N .O D ~ L ~ a fa ~ O ~ ~ i > ~ f6 i J m ~ (~ fQ f6 i LLL •aL•~ ~A ~ _ UJ ~ ~ L "U ~ ~ "U C L .C p Z I~ p z ~ ~ ~ p Z ~ (~ ~ p Z ~ Z Z. a m ~ ~ ~ m C ~ O p ~ N Y (6 c M - N C L '6 U •~ ~ ~ G r r (B ~ O ~ N N ~ ~ O Z ~ a L a~ a II ~ a~ E -a c p ..O E ~ c L ~ ~ ~ . a~ ~, ~ ~ m . oo 7 W L ~ ~ O ~ ~ O ~ m c ~ -~ ~ a O ~ ~ r L (nom ti ~~ ~w o ° N o m a~ - a c :a N ~ LO ~ ~ a ~ ~. 00 > ~ > > ~ O ,, ,, W a~ ~ ca c a m L O ~ L i r ~ ~ ~ ~ ~ ~ ~ p v, ~ "- ~ o O° Y iII p o~ O O o a L O c • (6 ~ i a O ~ "O ~ U ~ ti L ~ -~ •~ ~ L • a ~ ~ ~ O ~ ~ N ~ L O o p ~ Ll" ~ "O I- D U L O O p t "a .~ ~ = Cn U p U L C 0 N O U 3 7 ~ ~ ~ U N (~ ~'' N ~ ~ ~ ~ ~ ~ c O ~ ~ ~ ~ N N ~ W ~ ~ ~ c a . ~ ~ ~ m ; ~ ~ Q N O ~ O = ~ O ~ O N p Y U U "'' y 0 (~ O p- W O~ L p ~ O ~ O~ `- ~ ~ 7 C - C 0 V O W O ~ O ,~ ~ N >~ O ~ N U~ 'O L n O v c6 ca ~_ L1.. ~ cv ~ .~- m .~ L U. ~ N = > O N O (6 O '~ ~N cn ~ ~ cnm M z ~ I- ~ av m A N V' O ~ r O N M ~ O O ~ r O r r N M d• d• ACS Cn In CO Cfl CO !`r ~ O O O O O O O O O O O O O N M ti' LSD CO 1` O W O r N M ty- r r r r r 4 F- 8 ~~ ZF W u VG • W G. ~ C ~~ ~- h H ~ ZC Oc g n Q d C ~ LL Z__ O~ Q LL 0.' a D J W w¢ _ ~ V W ~ MJ O W y U a~ ~ V O ti 0 V d ~ O ~ ` a Y ' Z L ~ O 0 . F v d ~ LL _ ~ y N Y N W O M p ~ ~ ~ ~ ~ ~ O ~ Q ~ d d 00 ~ = w ~ ~ .C ~p ~ t ~ ,~ C1 N W F. U ~ ci ,~ J J 1 1 EH ~ ~ 64 E!? Efl EF3 E!3 ~ ~ ~ ~ EA EF} ~} 69 6~} ER ER ER 69 EF} ff} EA EH ER 64 69 69 ~? 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ~n o 0 0 0 0 0 0 0 0 0 0 0 O O O !~ In 'c}' O CM O Lt7 ll~ O CO N r p O O CO r O O Lf~ M O O) O O N M d' L(') O N M CO O O o0 00 t~ CO N Cfl M ~ tf~ i~ N N M r N ~ r I,() ~ H3 EA (A ~ 69 6F} f~? b9 63 69 Ef3 EH b~} b4 6F} ~} N ~ ~ a± ._ _c ~ .-: 71 ~ L (6 ~ ~ ~ N ~ O (Q ..: N ~ _ y ~ ~ ~ `` ~ O N N U O V ~ O U O ~ ~ U U O O U (~ ~ O ~ U ~ ~ c o ~ i ~ -o U ~ ~ y_ o '~+ ~ c o w c ° m ~ c ~ ~ ~ c • c ~ c ~ c .~ ~ ~ c ~ ~ .Q ~ - ~ ~ ~ ~ ~ m n ~ fY = U ~ _ '~ Imo- Y o` ~ o` f~- ~ ~ ~ Y `O Y c~ Z Z Q Z 'o w ~ ~ E .«. o ~ c _O O C C (a _ N o~$ ~ O O m U N ~ ~ _ ~ ~ - Cfl C O ~ ~ L p L ~ N U r ~ ~ ~ C (0 N ~ ~ ~ J C ..r ~ ~. ~ O ~ c " ~ ~ C O ` L N N to N 6 c O ~ ~ ~ - ~ ~ ~ ~ (0 O) = C O N X O .Q N RS >, ~ M ~ 3 vOi O O ~ ~ ~ .6 a. fA +-' ~ ~ t. O m ~ ~ ~ p N ~ L ~ c6 ~ (~'~ fA r ~ W ~ ~ Q. ~ J O C~ O to -O m, ~ ~' •O C . ~ 00 r r' O U (U O U O U p v ~ O Q r b ~ ~ ~ N ~ ,~, N ~ ~ m ~ y O ~ O O ~ . C U O +- O . p ~ c6 O ~ .S O __ ~ O O ~ ~ a- ~ O C c c U ~ ~~ ~ ~ m cLa ~ ~ a ca _~ c. o O ~ c ~ ~ ~ ~ i0 ~ ~ N N ~ ~ U N W 4i ~ Q ~ °' ~ Y s ~ cq y C (B ~ M ~ ~ ~ i6 >p U N r i c r .c lf~ ~ O CO "~' p ~ (U6 ~ ~' ~ *k c~ O.~ cv ~ ~ ~ ~ N O O.~ ~ a~ ~ ~ ~ (A ~ U ~ ~ N ~ O .~ ~ N .C ~, C O O .~-~ L ~ ~ Q Q c"a D.. c6 ~ d ~ ~ D.. E Q Q ~ d' ~ Q. J V c0 ~ O p N O M OS Cfl O d' O tf) O I~ O M O N r ~ r O r ~ O O O O O r r r r r r ~- 7 Cfl f~ M d7 O r N M ~ l!') CO f~ ~- r r r N N N N N N N N ci C C O .~ s U U G M O N N O) co a ~Fq 0 0 V r d •~ sa Y L N t3 ~ LL +: Y L 1 M # ~ d ~ L a 0 ~ y:. ~ t ~? N U ~ ch z W V a' W a ~~ ~~ ~a z c: Oa ~a ¢a c ~ LL z Om Qw a 0 w J W W Q 2 ~ U W J ~ m ~ . 1- V1 U zQ can z ~~ z ~_ '"' _a U N W ~I O V a C~ G W F- O N O r d 3 w N L d z d 0 d c R U M '~- O • V C 0 .~ U ~~ pd; V i i ~': ~fF-lam CHANGE ORDER Owner: City of Richfield Change Order No.: #004 Construction Manager: Gundlach Champion, Inc. Change Order Date: 4-15-08 Project Description: Miscellaneous Extra Work (See Attached Summary) Section I. Describe the Work: Section 11. ADJUSTMENT TO BUDGET Original Budget $11.580,000.00 Previous Change Orders #1 through #3 $ 0.00 This Change Order $ 0.00 New Budget $11,580,000.00 ~~ 2. ADJUSTMENT TO CONTINGENCY Original Contingency $ 764,270.00 Previous Change Orders #1 through #3 ($ 257.241.17) This Change Order ($ 150.945.83) New Contingency $ 356.083.00 3. ADJUSTMENT TO CONTRACT TIME X Contract Time is Unchanged Contract Time is Adjusted Original Date of Substantial Completion .6/20/08 Previous Change Orders #1 through #3 0 days This Change Order 0 days New Date of Substantial Completion 6/20/08 Upon execution of this document by both parties, the Agreement is modified by, but only to the extent of, this Change Order, which becomes a part of the Contract Documents and is subject to the terms and conditions of the Agreement. Gundlach Champion, Inc. is directed to make the change in the work described above. Gundlach Champion, Inc. shall keep accurate records of the services, labor and materials used to perform the described Work and shall include the cost of such change in its next application for paymentin a separate line item. GUNDLACH CHAMPION, INC. By: Title: Kathleen Hainault. VP Administration Date: 4-15-08 OWNER: By: Title: Debbie Goettel. Mayor Date: ARCHITECT: OWNER: O By. By. Title: Sfan Owens. Project Rep - SEH. Inc. Title: Steven L. Devich. City Manager Date: Date: '~F-I! ~ W Z~ va ~~ W ~ av ~z =o ~ ~ ~ ~ , ~~ ~a Z~U Oa a aa ~ 0 F,' J i ~ i i i ~ ~ i i ~ Z J Om w Q O 0 O 0 O 0 0 0 0 0 O ~ N o O 0 O 0 O 0 ~ 0 'ct .- ti 0 O 0 O W J W tf) M O ~ ~ ~ ~ ~ O o O M O cfl N O O o ~ f~ d' ~ cM N O ti O ~ ~~ O O I~ ti CO M N ti N ~ 00 M O O W Q N O ~- O v M O ~ N M' tp o0 _ ~ V ~ EH ER ~ EA EA ~} E~ (f? 69 tf? EA .-. ~ 0 ~ > > > m v ~ v U '~- ~j ~ d ' c c 2 2 2 N 0 Z U ~ O ~ (~ O U c N o ~ w U U O~ W W W -p C N ~ •~ ~ N N U O (Q (~ Ur G. I- ~ ~ cn ~ _ ~ ~ m ~ ~ ~ Y a W O U U U a? m ~ .~ Q ~ U Z ~ ~ ~ ~ ~ ~ ~ ~ ,~ ~ .r O Q. N O U -` O N f0 O O ~ (p L m O ~ >, Q~ ~ ti O W N O ~ W y W T '' ^ L ^`'' _ ^^`` U ~ t 2 ~ Q ^' ~. ~ O ~ ~ L[7 . . ~ N ~ - ~ ~ ~ •(~ L ~ O cc G ~ > O U U U ~ ~ O •/ U W O •C O Q ~ ~ J r.. v ~ / ~~/ LJ.. ~ ~ ~ ~ ~ ~ ~ ~ W V ~ '- p V ~~ ~ ~ 1 N ~ .0 U N ~ F+ d ~ ~ O O ~ O O O O i O O ~ .` ca` ~ ~, n ~ iii ~ ~ ~° N °~ ~O w ~ ~ Z ~' 0 OC C ~ ~ `° ~ r ~ ,O O ~ LL ~ ~ ~ ~ O ' p „ U~ N N Q .~-.. O~ N~ O O O O~ O L ~ 3 f6 ~ ~ df ~ ~ N ~ N U O ~ U _ O O ca ~ N O O ~ t ~ U n- ~ 3 O O - 'D N ~ :~ ~ ~ C O t n O O U X v i O r O C . O O QY~ 0 ~ Q ~ U 0 ~ _ ~ v~ .. 7~ # v ~ ~ ~ ~ ~ rn ° ~ ~ O a ~~ (,~ a a O O O O O O r r ~- T- ~ ~ ~ °° ~ . O S '~OV' W ~ N M d' I .l7 Cfl N O ~ ~ V N ~ ~ ~ ~ N O • U C C O .~ t V U ~i e: i' I i r ii ~~ Imo. ~ W W~ ~ W ~ a v V1 Z ~p ~ v z -' 0 0 . a Qa ~ ~ 0 F-~ z~ 0 0°. w a a ds c-FS c~ ~ ~ c~ c~ ~ ~ ~ O O O C`7 O O O O O C`7 O O M D tf) ~ O (`~ O ~ O O O ~t O t~ a0 W ti N ti O ~ d' I` Ln N I` O O ~ J W I` Ln O O O O t?' c7 r d' N Lf) of = O O ~ N r d' I~ O O M O M r W r r d' N M r r O W Q r O _ , r U ~ ~ t~ ~ v3 ~ ~ ~ ~ ~ ~ ~ c~ tfa U Q J ~O > ~ v o ~ ~ ,~ ~ _~ _~ > m U1 C) t N ~ ~ p) ~ ~ N ~ _ O U ~ Z ~ W W E ~ N W W W ~ W N a F- ~ cn cq ~ ~ ~ cn cn cn ~ cn ~ 1° ` Y U U U U o W O m V U o ~ o I- ~ V ~ Z Q ~ ~ Y C O U ~ ~ O lA j O ~C O O O O O O. '~ O "- O` - O N '6 ~ ~ . , 3 ~ U = v ~ C . f+~') ~ ~ M ~ O O ` U C ~. ~ '~ N ~ U~ ~ m «S ~~ ~ C6 ~ O LO U ~ O r f0 ~ - ° ~ ~° N c ~ ~ °- a~ ~ U ~ ~~ , ~ Q m ~ ~ is m o '~ et ~' ; .«~ ° c oc i ~. a ~~, ~ ~ ~ ~ cv ~ ~ ~ pO ~ o _ ~ a a~ r.r d ' ~ i ~+ .~ COC- ~O ~ .~.. ~ ~ ~ O T i~ "-' r V cUc O ~ ~ ~ O d Q~ y~ + ~ Q C ~ ~ O (~. ~ L = , ~ N a.+ ~+ C ~ ~ ~ ++ 3 to a~ ~ o c a _v o s ~ ~ ~ ~ x oot5 z ~ ~ ow O a i ~ ~ y ~ o°~ ~ aim i ~ a ~ ~ ~~ '~ ~ 'v d ~ ~ ~ c 'a ~ o > api ~ ~ ~ ~ ~ ~a J ts- ~ O ~ ~ u`~ ~ v N ~ ~ ~ . Q.:a xs vOi .c ~ ~ c ~r c~ d . ~~ V o'~ 5o ~ o _ ~ c c~ ° v ~ O ao O o~ °~ R (n ~i W 3 y O~ a ic L O :~N N p O - O p Q-a i O '- ~ 'O LL LL N .C c D ¢ .E ~ ~ I p - ~ ~ 3 ~ d ~ . a 3 Q ~ ~ = U ~r ~ ~ ~ ~ © N N O M M ~ M M ' d' d ~~ (~ r r r r r c 7 r r r r r o. ~ a~ ~, ~ ~ ~~ C ~ L~ N r M r d' r r C O r 1 ~ r O r O r O N r N N N ~ W ~ V N ~ V ~ et r N O N O -o c~ a 0 .~ p ti c 4f=13 CHANGE ORDER Owner: City of Richfield Change Order No.: #005 Construction Manager: Gundlach Champion, Inc. Change Order Date: 5-22-08 Project Description: .Miscellaneous Extra Work (See Attached Summary) Section I. Describe the Work: Section II. 1. ADJUSTMENT TO BUDGET Original Budget Previous Change Orders #1 through #4 This Change Order. New Budget $11,580.000.00 $ 0.00 $ 0.00 $11,580.000.00 2. ADJUSTMENT TO CONTINGENCY Original Contingency $ 764,270:00 Previous Change Orders #1 through #4 ($ 408.187.00) This Change Order ($ 161.795.93) New Contingency $ 194.287.07 3. ADJUSTMENT TO CONTRACT TIME X Contract Time is Unchanged Contract Time is Adjusted Original Date of Substantial Completion 6/20/08 Previous Change Orders.#1 through #4 0 days This Change Order 0 .days New Date of Substantial Completion 6/20/08 Upon execution of this document by both parties, the Agreement is modified by, but only to the. extent of; this Change Order, which becomes a part of the Contract Documents and is subject to the terms and conditions of the Agreement. Gundlach Champion, Inc. is directed to make the change in the work described above. Gundlach Champion, Inc. shall keep accurate records of the services, labor and materials used to perform the described Work and shall include the cosf of such change in its next application for payment in a separate line item. GUNDLACH CHAMPION, INC. By: Title: Kathleen Hainault. VP Administration Date: 5-22-08 OWNER: By: Title: Debbie Goettel. Mayor Date: ARCHITECT: OWNER: By: By: Title: Stan Owens. Project Rep - SEH. Inc. Title: Steven L. Devich. City Manaaer Date: _ __ _ Date: `'i'r'/~ t- W z E' wW ~a ~ W O 0. V to Z = 0 ~ i ~ ~ ~ i ~ i ~ , ~ F- F.. -- a . Z U ~ J oa ~ o- aa~ 0 ~, J i ~ ~ ~ i ~ i i ~ i ~ Z J Om ~> aW asg ~ ~ cfl ~ ~ ~ ~ ~ ~ ~ o ~ O ~n N ao O 0 L!~ 0 O 0 O 0 O 0 O ~ t~ ti CO o O pOj p J W dO- ~ ~ c+M O ri N ~ rn ti ~ ~ '~ CO co Lf) 0 ti ~ ~ N N ti ~ r p p LC) CO op N N M M r N O O N 2~ V N ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~3 .-. U U ~ m ~ ~ N ~ .~? io U w U c O c O V - _ ~ U ~ O U O~ c ~ ~ W U U W 2 ~ U ~ Q c a f- ~ ~ ~ cn c c cn -~ ~ ~ C7 ~ .~ _ wp~ ~ ~ U ~ ~ °~ ~ ~ U ~ ~ ca c~ ~ ~ a~ O ~ _~ O L ~ O fA L ~ ~ ~ p ~ O rn ~ ~ ~ ~ ~ m 0 ~ ~ "6 ~ V ~ _ O ~ N ~ O ~ ~ 'a c O O to ~ ti -Q ~ O O ~ ~ ~ O ~ ~ N ~ ( 06 ' O ~ O f1 0 ~ O L O ~ O L ~ ~ - ~ (6 .,., a i. t .r+ V Q. ~ 4- ~ O -O ~ N .... O U U ~ w ~ .o- -. ~ Q ~ O ~ N a .~ ~~ ~ c D ~ ~ D ~ ~- N o v C Q O- O ~ .C a (6 N fSf O ~ ~ Z ~ a' ~ O ~ ~ N N W O N ~ '/ ~ C w R n' ` a' ~ a ~ ~ ~ li ~ ~ °' ~ -~ o r LL ~~ ~~ ~ N ~ N ~ ~ O N N O L ~ U y ~~ (n C _~ N O U ~ O O O i O N U O V1 C ~~ W ~ ~ LL Cn ~ Q~ 0.' ~. o U LOL W ~ S' W 'O d N i LL Q ~.. N ~ C1 ~~ ~ d7 0 0 O O r r M (h 00 Ch N O O N ~ O ~ LL Q 0 d ~ ~ C ~ V N W r N M Cf' LSD CO I~ O O ~ ~ T t N ~ v~~, - N O O d • c .~ .a U f yF-is • • z~ W w ~a ~ w p 0_ V y Z =p N ~ t- Q Z V o a ga aa ~ o -- w ~ ~ ~ ~ z~ ~ 000 . ~> Qw a ~ ~ ~ ~ ~ ~ ~ ~ ~°n °o o° ~ o° °o °o °a W J W ~ N ~ O ti N ~ ~ = M of c}' CO CD ~ CO ~ J r 07 r- d' P- M V N E!T fl? d3 ER 64 Efl FfJ ~ ++ ~ .~-~ W ~ ~ ~ J p m~ .U L ~ C U ,~ C C v? V ~ c ~' a°i U U Z w U U ~ ~ p w -a ~ N ~ ~ ~ m ~ c~a Wp U U s ~ ~ V Z Z ~ ~ 'N ~ ~, ~ ~ ~ ~ ~ m ~ a ~ ~ ca ~ can °" N ~ O r U 'O ~ N ~ ` ~ O~ 00 O tq ~+ U O y C o .~O U ~ ~. N ~ N O .r+ V f6 O U~ O ~ Q C .O m U~ C (~ ~ d '^ +6 O _ ~- O ~ O U O ~ p U O N ~ t ~ -~ ~ ~ 3 U ~ '~ ~ uj ~ U W a Y Z N O U~ O Q O f6 ~ > f0 L ~ Y~ O C O U ~ p_ p 'o ~ c E O >, n :~ 3 -~ L 'v d ~ ~ ~ coo ~ c ~' ~ ~ ~ fA f4 7 LL ~ C (0 p i O7 ~ C 7 C c~ U ++ (0 ~ ~ p~ c O +~+ i W ~ O OQ .~ ~ Q O ~ ~ ~ _ ' O ~ s ^ Q O G ~.~.. Q ~ ~ / iL Q V s'a _ ~ ~ lCJ C" Cfl r CO r Cfl T C9 r' CO r I` r a a.. d ~, ~ ~ ~ ~+= c g ro rr ~ m ~ m rn Z V N W ~ ~ ~ r- ~ r ~ ~- • v~~ M ti T T E9 d 7 ~a 0 L d .Q Z d d C N 0 N N -~ O d i E ti i •~ ~: •~. V f ~ ~_- ~~_1 CHANGE ORDER Owner: City of Richfield Change Order No.: #006 Construction Manager: Gundlach Champion, Inc. Change Order Date: 7-28-08 .Project Description: Miscellaneous Extra Work (See Attached Summary) Section I. Describe the Work: Section II. 1. ADJUSTMENT TO BUDGET Original Budget $11.580.000.00 Previous Change Orders #1 through #5 $ 0.00 ' This Change Order $ 0.00 .New Budget $11.580.000.00 2. ADJUSTMENT TO CONTINGENCY Original. Contingency $ 764.270.00 Previous Change Orders#1 through #5 ($ 569.982.93) This Change Order ($ 70.252.93) New Contingency $ 124.034.14 3. ADJUSTMENT TO CONTRACT TIME X Contract Time is Unchanged Contract Time is Adjusted Original Date. of Substantial Completion 6/20/08 Previous Change Orders #1 through #5 0 days This Change Order 0 days New Date of Substantial Completion 6/20/08. Upon execution of this document by both parties, the Agreement is modified by, but only to the extent of, this Change Order, which becomes a part of the Contract Documents and is subject to the terms and conditions of the Agreement. Gundlach Champion, inc. is directed to make the change in the work described above. Gundlach Champion, Inc. shall keep accurate records of the services, labor and materials used to perform the described Work and shall include the cost of such change in its next application for payment in a separate line item. GUNDLACH CHAMPION, INC. By: Title: Kathleen Hainault. VP Administration Date: 7/28/08 OWNER: By: Title: Debbie Goettel. Mayor Date: ARCHITECT: By. Title:_Stan Owens. Project Rep - SEH Inc Date: OWNER: By: Title: Seven L. Devich. City Manaaer Date: ~~F- ~'7 ~~ zw w ~a w~ a~ v ~z ~o~ ~a Z U Oa aQ~ 0 F'+ J ~ Z J Om ~ ~ aw ~~ a W ~ ~ M way` x> U N ~. ~ ~ ~ ~ sir Ea ~ ~ ~ ~y o° ~- o° rn ~ o ~ N o° o° ~ 0000_ ~ r ° CO e- o `- M O ~ O ~ ~ O ~ °o. O M N 0 rM- N 0° CEO O c~? ~ ~ c~ ~ ~ tt~ ~ ~ ~ ya c~ ~ U ~ ~ > U ~ ~ ~ w ~ _ Q .~ ° ° ~ rn Y ~ m ~ O (6 2 U O O ~,~., N (6 U ~ U cn V ov , ~ ' ~ ~ a` ~ a ~ ° U ~ o Z a .~ c ~ o ~ ° W J m _ ~ U o d ~ a°i ~ a i ~ o ii iL cn ~ ~ W C~ ~ w W O ~ ~ ~ ~ ~` U a ~ U ~ 1 ~ C ~ c v _ a i ~ a ~ ~ ' j ~ a ~ ~- U . N ~ ~ ~ c6 ~ ` ` u - Q Z m m .o U .~ p 0~ .~ O N U •V 'O ~ O ~ O C V O 4? ,~ ~ ~ tq N ti N ~ p ~ r C (0 U ~ C ~ N C m N p ~ ~ N ti ~ O ,~ '~ O O C ~ ~ 'C , "r O ~ O ~' O to ~ N Y ~ Q- N ~ 'p. N tq O O O L (13 +, ~ ~ C ,C 'O .~ h O ~ N .Q .Q r+ ~ G1 •~ ~ O '~ ~ 7 ~ O ~ Y (II ~ ~ O ~ ~ C' L ~ ~+ .~ p G1 L u~i U -O O N O ~ N U ~~ ~ ~ ~ i ' y °,' Z ~ ° N ~ ~ L ~~ x ~ ° o a o° ~ Y ~, O ~ ~ ~ a~ ° _N ~ ~ ~ ,L ~, Y E O .~ ~ F- .«.. -° O .C X O ~ L LL Y~ .` O O O p X p O ~ 'O ~ C l6 ~ to Rt a ~ .Q c0 o~$ w ~ ~ (6 a ° o O -° ~ ~ Q .. w ° ~ ° o .~ U ~ ~ cfl O L U ti O ~ ~ c 0 ~ a~ W ~ m ~ O r y ~ p ~ 0 0 O O O O N Y ~ C ' ~ ~ c ~ ' j 2' ~ 0t5 ~ o ~ ~ cfl ~ D ~ CU Q (A Q ~ Q ~ ~ a. c:v o ~ a ~ ~ ~ o ~ ~ N N ~ ~ ~ ~ b q q ~ ~~ ~ O r r ~- r ~ r ~- ~ r r r r ~ ~ 'a d ~ ~ ~ O _ ~ ~ = V N ~ ~ N C'') ti' In CO I` ~ 67 O r r r N c- ~ U ~ i. 4F-1 ~ Z W M W O ~ n' N W - o . v cn z =O ~ ~ ~ ~ H H I- Q zv ~ ~ Oa ~ c- Q Q c~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ^ ~W ~ ~ ~ ~ ~. Z J Om ~> Q W a ~ ~ ~ ~r cfr ~ ~ ~ ~ ~ ~s ~r ~ sv 0 0 0 0 0 0 0 0 0 0 0 o u~ o ^ O 00 O O O O O C'Q O ~ t~ LA N ~h W J W M d7 ~ M O N ~ O CO ti f~ ti O ~' Cfl O d' r- I~ ~ O ti ti LA ti CO M O = O~ M N d' N M p O M M M M h (p ' ^J M r r 6A may' r 2 ~ . U O> ~ ~ L i J Q > ~ c.> U v ~ ~ ~ n v O m f6 > 'C 's. 's. O > L .~ 'L Q '^ / ~~ v/ U ~ X ~ ~ ~ U X ~ ~ ~ ~ Y O~ O W _ W W W ~ Ur W ~ W W~ N U • L ~/ Z W O ~ E ~ ~ ~ U K.J U W U = ~ N E ~ W U W V U - a ~ ~ ~v _ m ~ Z ~ Q . ~ `° ~ > ~ O ~ ~ ` ~ o .., .~ °~ O O ~ °. ~ O ~ ~ O ~ m c ' M N N ~ O ~ ` N ~ p Q - p N ~ ~ ~ ~ . U O U ~ O - p #k p O ~ ~ O ~ O O N ~ ~ ~ ~ ~~ ~ i r.- y O O ~ O~ v- U ..~ d O ~ fn ~ . O ~ O C i ~ s a. N ~ ~ ~, c~ ~ N ~ U m ~ ~ O ai ~ ~ N (0 'O ~ ~ O ~ N .,_, to ~ ~ Z O $ :6 C ~ ~ ~ (~ p~ - to ca ~ ~ ~ ~ 0 N E ~ ~ i. _ w O = ~ ~ Q U ~ O ~ 0 ~ U d -O ~ .C ~ y ~ ~ O p 0? O ~ N ~ ~ ~ to ~ w ! N} RS 7LL. ~ O c0 _,,, U O v~ `+= N N~ >~ L N LL p O '~~ y_ ~ O O U N C S' p C r N Y ~ ~ ~ Ol ~ Q- Y ~ O N tB ~ C Y ~ ;O ~ ~ _ O ~ O r ' to W 7 O O -O p ~ p) ~ Q. O cv t~ O LO N X ~ u -~ ~ ~ ^ U U~ Q v ~ w ~ ~ Z E U Q. ~ U Z~. ~.L ~ ~ ~ *k V ~ N Cfl ~ O ~ lO CO O r N d' ~ g V ~' ~~ Q C3~ O CSC O O O O ~ ~ r r r +~ U r- r- ~ N N N N N N N N N ~ a n. 'a ~ ~ d p ~ ~~ _ v.. O .~ ~ M r ~ r ~ c- CO r I~ r CO r 01 ~- O N r N N N M N d' N Q p R .~ C1 N W ~ v~~ `~~=~9 ~~ ZW W J ~ ° ' ~ w ~ a U ~ Z =0 ~ N ~ ~ Q Z V ~ J oa ga Q ¢ c~ c~ ~ Es sg s3 cfr c~ e3 ~ c~ 0 W ~ Z J Om ~> aW a ~ ~ c~ ~~~ ~ ~ ~ ~ ~ ~ O O O O O to .-. Lf~ O O N t(~ tp O O O O r Q1 O O M 01 W J W Cfl tC) I.f) N N r r I` (~ I.C) d' ~ O O r1' r N I` O M M to >> CO CO d' r N~ N M d7 M N O J r r ~ C7 r N v r ~ _ '' V y E{} Ef} E{} ~} tf? ffl K3 64 ffl 64 b9 ~ ~ U U U ~ ~ 2 2 2 ~ W W ~ ~ ~ I ~ ~ ~ d ~ ~ ~ ~~ W W W a F- w ~ ~ ~ ~ ~ C7 ~ ~ ` ~ a ~ ~ ~° ° p ~ ~ U UUa ~ m ~ t- ~ V Q ~ ~ ~ ~ ~ ~ ~ ~ ~ a~ ~j Y L (~ '~ L O Y ~ ~ ~ ~ O O ti ~ ~ ~ ` (~ fl. p ~ ~ L ~ ~ ~ ~ ~ p p ~ t1~ ~ ,~,, r' p ~ U 'y '~ L. V ~ ~ O _~ ~ > O .Q U N '"' ~ Z ~ a 3 ° ~ ~ ~ 3 is O .~ -~ ~ E ~ m ' O w • 1- ~ co o ~ ~ ~ N x ~ ~ a p ~ ~ a ~ ~ ~ ~ N~ o ~ ~ ~, d ~ u. fQ to ~ V ~ ~ x a~ a~ ~ •°~ ~ , ~ c ~ O ti m . O ~ L ~ ~ ~ C Q N , .~ co ~ ~ C n d cn ~ ~ in ~ ~ ~ U ~ V d ~ o N N N N N N N ~ ~ ~ d ~ ~ ~ N N N R S A W N N M M ~ U ~ i ~~-ao . ,. CHANGE ORDER Owner: City of Richfield Change Order No.: #007Revision 2 Construction Manager: Gundlach Champion, Inc. Change Order Date: 9-24-08 Project Description: Miscellaneous Extra Work (See Attached Summary) Section I. Describe the Work: Section II. 1. ADJUSTMENT TO BUDGET Original Budget $11.580,000.00 Previous Change Orders #1 through #6 $ 0.00 This Change Order $ 0.00 New Budget $11.580.000.00 2. ADJUSTMENT TO CONTINGENCY Original Contingency $ 764.270.00 Previous Change Orders #1 through #6 ($ 640.235.86) This Change Order ($ 3.866.75) New Contingency $ 120.167.39 3. ADJUSTMENT TO CONTRACT TIME X Contract Time is Unchanged Contract Time is Adjusted Original Date of Substantial Completion 6/20/08 Previous Change Orders #1 through #6 0 days This Change Order 0 days New Date of Substantial Completion 6/20/08 Upon execution of this document by both parties, the Agreement is modified by, but only to the extent of, this Change Order, which becomes a part of the Contract Documents and is subject to the terms and conditions of the Agreement. Gundlach Champion, Inc. is directed to make the change in the work described above. Gundlach Champion, Inc. shall keep accurate records of the services, labor and. materials used to perform the described Work and shall include the cost of such change in its next application for payment in a separate line item. GUNDLACH CHAMPION, INC.. By: Title: Kathleen Hainault. VP Administration Date: 9/24/08 OWNER: By: Title: Debbie Goettel. Mayor Date: ARCHITECT: gy. Title: Stan Owens. Project Rep - SEH. Inc. Date: OWNER: By: Title: Steven L. De4ich. City Manaaer Date: z U Ll.i a 2 F F Z C~C G. r Z ~C G Q ~/~=~ ~ 0 0 0 o 0 00 0 0 Q o 0 0 0 r r r r r 00 r r .0 r 0 r ° ° ° ° ° ° 1 t o t 1 t 0 1 ci o o o o 0 o ai cci ~ v o co rf N ~ ~ ~ c ~ N 1~ V c'o 'd- CO r r N r r M ~ ~ t() r 44 Ef} (f} 1 1 t ER i y} 64 Ef} (f} ff} i t 7 1 I d} i 64 64 1 1 K} d~ 1 O t(7 O O O O O O O O O O O O O O O r r O O O O fD ~ ~ L f~ ~[3 ~ O ~ CO O O C+') O CA O N N rn CD O N d' c 1 ~ (~ O ~ O O d' O O c0 O tYi , ~ ~ r 67 ~ M r d7 f`~ O 'd' ~ d~ N c7 r r ~ N O 1~ O V r v r . ... ~ </-} ff} 64 fR b9' SF} 64 fF? 64 ~} 64 Et} b4 64 64 U ~' C °- L~ ~ .. O o a~ ~ LV ~ Q ~~ ~ O d c U in in ~ cn ~ ~ ~ t/? U t ~ L ~ O ~- a O ~ N a ~ ~ O U O U ~ Q7 a d ~ ~ , U ~ ~ ~ N O ~ O N U ~ Z ~ ~ ~ p ~ v i i7 c 6 t ~ (~ ~ ' ~ ~ ~ z - _ _ = O O ~ ~ (n Y ~ Y Z Z ~ ~ ~ w ~ ~ N L ~ ~ N L ~ O L Q~ m cNn Z OT fU G (6 _ ~ U Q. C S1 _ t0 ~ ~ ~ ~ ~ f6 ~ ~ ~ .` ~ tp O N N U -~ U O m U U L ~ tB ~ m O "-' O 4l U O r o t `~- L s N ~ O ~ ~ ~ ~ ~ . U "--' cu ~ ~ .Q Y~ r' O U (0 ~ o~$ N ~ _ N ~ U 'L O ~ j 7 ~ C 1 ~O ~ O ~ p L C ~ - p ~ ,Q '1"i (SS ~ p ~ ~ y~,, U p U G1 Q E O "= "a , ~ -~ O L ~ O O ~-' 'O ~ O U U 0 .a.l ~ 'o r a O ~ ~ w . ~ , ~ I 6 °' ~ °~ ~ U 0 a L ~ ~ Z U ~ N ~ . . U U ~ o L ~ C ~ ~ 7 U d. ~ N ' N '-~ I N ~ ~ p N O C IQ N ~ . !11 ~ ~ v E~ C6 L N L ~ C ~ C ~ C `- U 'D f6 i O . rn c~ ~ ~~ O O 'O 0 O~ ~ LL. ~ U to O N ~ U O n. ~ O 1 Y ~ > ~ u i Q~ ~+ W w ~, Y t0 LL.1 D - (/~ Q ~ ~ O ~ d p ~ N ~ p f~ «s t cB U~ ~ d c co 2 c co 2 ~ 5 o~ ~ c ~ X 4 i- . U ~ H N .n 0 1 n ~ ~ ' l[) M d' O r M r N N 07 O r i+'a ~ CS ~ mot' In O M O of N N N N M c'; c~'~ L„ "~ (,) r r r r r r N N N N N N N Gt .O p_ .a 0. 0 ~ d ~ ~ ~ ~ iN O W r N M ~ LCD CO I`- W 01 ~ r T r ~ .C (J M - U ~ a~ N 0 • C C O .~ tO U r- c C7 ~ ~~~~ • • I- ~ Z} W ~' ~ ~ W ~ a~ ~z = C ~ }.. F- Q Z L ~ J Oa 4a 0 Z J O m aW a J t,1,! >> D J W Q 2 V W ~i J 0 m ~„, N U Z 0 a~ wp ~ U ui N i ~ N ~ ~ t ~ ~ 0 0 ~n o rn ~ c7 N T ~ ~ U V .: ~ ~ w ui cn ~ U U c a~ E . ~ Q a~ CV ~ ~ ~ ~ T r ~' O .~. i Q O ,F ~ Q ~ L O -1-~ (.~ ~ O ~ ~~ O `- 'd U Q3 .C ` *k a. Z (Cf C ~' ~-' ~ N (~ ~ ` o ~ 7. a i }:. o ~ C C1 d ~ _ !Y U tt7 (p is L Q. W D o ~ c~ G O h ~ L.1 ~ c~ c~ ~ ~ (} a N N ~ a ~, ~ *k ` ~-O c W ~ ,~ v M ~ U ~ a~ cn ti cfl M r~ d 3 F~- n Z d a C7 m C C N O N . a1 c~ V '. ~ f~ c" ,~ i_.: ~ f ~ i V i. S ~ `, ~ f e t7 f" 4F a~ r1 U CHANGE ORDER Owner: City of Richfield Change Order No.: #008 Revised Construction Manager: Gundlach Champion, Inc. Change Order Date:. 11-03-08 Project Description: Miscellaneous Extra Work (See Attached Summary) Section I. Describe the Work: Section II. ADJUSTMENT TO BUDGET Original Budget $11.580.000.00 Previous Change Orders #1 through #7 $ 0.00 This Change Order $ 0.00 New Budget $11.580.000.00 2. ADJUSTMENT TO CONTINGENCY Original Contingency $ 764,270.00 Previous Change Orders #1 through #7 ($ 644.102.61) This Change Order $ 61.514.62 New Contingency $ 181.682.01 3. ADJUSTMENT TO CONTRACT TIME X Contract Time is Unchanged Contract Time is Adjusted Original Date of Substantial Completion 6/20/08 Previous Change Orders #1 through #7 0 days This Change Order 0 days New Date of Substantial Completion 6/20/08 Upon execution of this document by both parties, the Agreement is modified by, but only to the extent of, this Change Order, which becomes a part of the Contract Documents and is subject to the terms and conditions of the Agreement. Gundlach Champion, Inc. is directed to make the change in the work described above. Gundlach Champion, Inc. shall keep accurate records of the services, labor and materials used to perform the described Work and shall include the cost of such change in its next application for payment in a separate line item. GUNDLACH CHAMPION, INC. By: Title: Kathleen Hainault. VP Administration Date: 11 /03/08 OWNER: By: Title: Debbie Goettel: MaXor Date: ARCHITECT: By: Title: Stan Owens. Project Rep - SEH. Inc. Date: OWNER: By: Title: Steven L. Devich. Ci , Manager Date: ~~~,~ ~ W Z~ va W ~ a~ V N Z =p F ~ ZV O o"~. a Q Q ~ c~ c~ ss se ~ ~ W i ~ ~ i Z J Om aw a ~ ~ ~ ~ D O N O ~ J W M ~ ~ ~ > > O O N o0 W Q ~N N ~ ~ 2 ~ U N ~ ~ ~ ~ J ~ ~ ° O ~ U cn U r i a ~ s Z ~ W 2 U ~ a~- ~ ~ ~ o ~ V U c w ca ~ ~ C7 ti T r ~. r C ~' a ~ o ~ r ~ c a r- c E ti o o ~ ~ ~ o m ~ O ~ a. ~ ~O C .~ O ~ a z ' cn °O ~ > Y ~ Q N > C O n. Z ~rn y ~ li U co ~ '~' ' s Vl W N Y D ~ U ~ cB ~ ~ ~ ~ ;~ > ° o~ ~ ~ O N N N ' N ass a $a O ~ ', ~ ~ d o R s M W • - N M d- ~ U ~ ~ d' r 1- 0 d 3 z L ° _ c~ c~ d ~~ U ci c c .g V :~ C~ ~~- STAFF REPORT AGENDA SECTION: AGENDA ITEM # REPORT # CITY. COUNCIL MEETING NOVEMSER 25, 2008 Consent 4G 278 REPORT PREPARED BY: DEPARTMENT DIRECTOR REVIEW; REVIEWED BY CITY MANAGER: JIM TOPITZHOFER, RECREATION SERVICES DIlZECTOR NAME. TITLE ITEM FOR COUNCIL. CONSIDERATION: Consideration of award of agreement for concept plans, and cost estimates for the renovation of Lincoln Athletic Com lex to Busch Architects. I. RECOMMENDED ACTION: By Motion: Award the attached agreement to Busch Architects in the amount of $5,000 for concept plans and cost estimates for the renovation of Lincoln Athletic Complex, and an amount not to exceed $300 for reimbursable items. • II. BACKGROUND A group of ten citizens represented by the Community Services Commission, Richfield Girls Softball Association and Richfield Baseball Inc., has been assembled to begin plans for the renovation of Lincoln Athletic Complex. One of their first tasks was to recruit and selected.a consultant to assist with concept design and cost estimates. The attached Request for Proposal was distributed and eight proposals were received. Each proposal was scored based upon the following criteria: 1) Cost/value of conceptual design services. 2) Review of professional qualifications. 3) Inspection of previous renovation projects and references. 4) Interview 1125 Busch Architects Agreement Busch Architects received the highest score and was the overall lowest cost proposal received for design services. III. BASIS OF RECOMMENDATION A. POLICY • Busch Architects received the lowest score based upon criteria outlined in the attached Request for Proposal. B. CRITICAL ISSUES • The planning group would like to get started with the concept plan as soon as possible so that they can begin formulating a plan for City Council to consider by next Spring. C. FINANCIAL • The cost of the agreement, not to exceed $5,300 will be funded .through the approved City Capital Improvement Budget. • Busch Architects was the lowest overall design cost of all eight proposals received. D. LEGAL • -The City Attorney has reviewed the attached agreement. . E. ENVIRONMENTAL CONSIDERATIONS • None IV. ALTERNATIVE RECOMMENDATION~S~ • None V. ATTACHMENTS • Agreement with Busch Architects Agreement between The City of Richfield and Busch Architects for conceptual plans and cost estimates for the renovation of Lincoln Athletic Complex. • Request for Proposal for Lincoln Athletic Complex Conceptual Design Services. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None ~ ~-i RICHFIELD RECREATION .SERVICES AGREEMENT BETWEEN THE CITY OF RICHFIELD AND BUSCH ARCHITECTS FOR CONCEPTUAL PLANS AND COST ESTIMATES FOR THE RENOVATION OF THE LINCOLN ATHLETIC COMPLEX Hereinafter, the City of Richfield, Minnesota, will be referred to as the "OWNER" and Busch Architects as "ARCHITECT". SCOPE OF SERVICES ARCHITECT shall provide the following services in preparation of the renovation of Lincoln Athletic Complex: 1) A minimum of Five (5) programming sessions with planning-team to develop a program-needs analysis of the facility, and record minutes of each meeting. 2) Conceptual plans and site plan drawings of renovated facility with possible amenities that include a parking lot, 3, possibly 4 ballfields, scoreboards, dugouts, batting cage, warning track, storage, bleachers, pedestrian lighting, irrigation, fencing, trails, concession/restroom building, and a playground. 3) Design a project that will offer the female users of Lincoln Athletic Complex with equal ball field facility amenities and features that already exist for the male users of like ages, and prepare a document summarizing the attempt to insure gender equity. 4) Conduct two public meetings, and present recommendations to the Community Services Commission, and present recommendations to the City Council. OWNERSHIP OF CONCEPT PLANS AND COST ESTIMATES AFTER COMPLETION The OWNER shall be granted permission by the ARCHITECT to possess and maintain the concept plan, drawings, specifications, estimates, and other work submitted by the ARCHITECT under this agreement; and to use such concept plans, drawings, specifications, estimates, and other work to proceed with preparation of construction. drawings, bidding, and construction of the project by another architect or consultant. ADDITIONAL SERVICES Additional services, if requested by the OWNER in writing, shall be billed according to the below Professional Services Fee Schedule: Kevin Busch, Firm Principal $110 per hour Gary Demele, -Vice President $110 per hour Michelle Gerner, Intern/Draftsperson $75 per hour Henry Voth, Structural Engineer $125 per hour Larson Engineering $95 per hour Bill Sanders, Landscape Architect $110 per hour . Robert Gunderson, Landscape Architect $110 per hour Landscape Architect/Planner 4 $95 per hour ~ ~~ ~. PAYMENT FOR SERVICES CITY agrees to compensate ARCHITECT a sum of $5,000 for drawings and cost estimates, all requested additional services in accordance with the above fee schedule, and an amount not to exceed $300 for reimbursable items including mileage, copies, printing, postage, delivery and other such expenses made on behalf of the project. Payment will be made within three weeks of final submittal. GENERAL TERMS AND CONDITIONS 1. This agreement, upon execution by both parties hereto, can be amended only by written instrument signed by both parties. As the project progresses, facts uncovered may reveal a change in direction, which may alter the scope. ARCHITECT will promptly inform the OWNER in writing of such situations so that changes in this agreement can be negotiated as required. 2. ARCHITECT will maintain insurance coverage in the following amounts: Worker's Compensation Statutory General Liability Bodily Injury $1,000,000 Property Damage $500, 000 Automobile Liability Bodily Injury $1,000,000 Property Damage $1,000,000 Professional Liability Insurance $1,000,000 . 3. OWNER may terminate the contract for any reason by providing seven (7) days' advance written notice to ARCHITECT. Upon termination, ARCHITECT will be entitled to payment based upon work actually performed, calculated at the hourly rates specified at "ADDITIONAL SERVICES" above; provided, that the charges billed for work performed within the "SCOPE OF SERVICES" above shall not exceed $5,000. 4. ARCHITECT intends to serve as the OWNER's professional representative for those services as defined in this agreement and to provide advice and consultation to the OWNER as professional. Any opinions of probable project costs, approvals and other decisions made by ARCHITECT for the OWNER are rendered on the basis of experience and qualifications and represent ARCHITECT's professional judgment. 5. This agreement shall not be construed as giving ARCHITECT the responsibility or authority to direct , or supervise construction means, methods, techniques, sequence or procedures of construction selected by contractor or subcontractor, or the safety precautions and programs incident to the work of the contractors or subcontractors. • y~-3 Busch Architects. Kevin C. Busch, AIA, CID Principal City of Richfield, Minnesota Debbie Goettel Mayor Steve Devich City Manager Date Date • `7 ~~ I CITY OF RICHFIELD, MN 55423 RECREATION SERVICES DEPARTMENT REQUEST FOR PROPOSAL FOR LINCOLN ATHLETIC COMPLEX RENOVATION CONCEPTUAL DESIGN SERVICES (7000 NICOLLET AVE S) GENERAL GUIDELINES. A. Requests For Competitive Proposals. The City of Richfield is seeking competitive proposals from interested and qualified companies for consulting services to prepare conceptual plans and cost estimates for the Lincoln Athletic Complex, 7500 Pleasant Avenue, Richfield, MN 55423. B. Owner and Submission Information. Interested companies should submit ONE COPY of their competitive proposal to: Jim Topitzhofer, Recreation Services Director City of Richfield 7000 Nicollet Avenue South Richfield, MN 55423 RE: Lincoln Athletic Complex Proposal Competitive proposals shall include all of the items set forth in Section II below. Any questions regarding this Request for Proposals should be directed to Jim Topitzhofer, Recreation Services Director at 612-861-9394. All proposals must be submitted to the Recreation Services Department at the above address by 10:00 a.m. on October 14, 2008. Late submissions will not be considered. II. RENOVATION DESCRIPTION AND SCOPE. A. Consultant Services Proposal The City of Richfield Recreation Services Department is seeking competitive proposals for consulting services to prepare conceptual plans and cost estimates for the renovation of the Lincoln Athletic Complex as defined in Section I I B and C. The Proposer shall provide an itemized estimate of the cost of services for the following categories: 1) Five (5) programming sessions with staff and various user-groups to develop aprogram-needs analysis of the facility, and record minutes of each meeting. ~ ~"~ 2) Conceptual plans and site plan drawings of renovated facility with possible amenities that include a parking lot, 3, possibly 4 ballfields, scoreboards, dugouts, batting cage, warning track, storage, bleachers, pedestrian lighting, irrigation, fencing, trails, concession/restroom building, and a playground. 3) Conduct two public meetings, present recommendations to the Community Services Commission, and present recommendations to the City Council; including the cost of all presentation materials. 4) Estimates of total project costs, including design costs for preliminary & final plans and specifications, bidding phase and construction services. B. General Renovation Scope The overall goal of the project is to redevelop Lincoln Fields into amulti-purpose facility that can accommodate a diversity of users, including both boys and girls ball leagues, and neighborhood use. This upgrade will provide the City of Richfield with additional quality fields and amenities that will deliver a more desirable playing and overall park experience, similar to Roosevelt Park. Possible amenities include but are not limited to a parking lot, 3, possibly 4 ballfields, scoreboards, dugouts, batting cage, warning track, storage, bleachers, pedestrian lighting, irrigation, fencing, trails, powered infields, ` concession/restroom building and a playground. • C. Design Services After Conceptual Plan Approval If is the intention of the City to retain the successful design services candidate to perform additional duties if the City proceeds with the project after the conceptual plan and estimates have been presented, and if approved by City Council. The City may negotiate a contract afterwards with the successful conceptual design services candidate for preparation of plans and specifications, bid documents, and/or construction management. However, the City reserves the right to select another consultant for any reason, and the successful design services candidate is not guaranteed any additional work for the City after conceptual plans and cost estimates have been presented. The Proposer should provide itemized cost of services for preparation of plans and specifications, bid documents, and/or construction management as a percentage of total renovation budget, in addition to the cost of services defined in Section II A. D. Qualifications Each Proposor should provide a list of professional qualifications, licenses, and certifications. E . References Each Proposer shall provide a list of five references. Each reference must include the name and address of the jurisdiction where the Proposer has performed similar design and engineering services, and the name and daytime telephone. number of an individual, who still works for the jurisdiction, which the 2 City can contact. III. EVALUATION AND SELECTION. A. Evaluation Criteria. The Selection Committee will evaluate and rank each proposal against the following criteria: 1. Cost/value of conceptual design services. 2. Review of professional qualifications.., 3. Review/Inspection of previous renovation projects and/or references. 4. Interview The Selection Committee will submit. a recommended proposal to the Community Services-Commission and to the City Council. The City Council will award the contract to the successful Proposer. B. Reservations and Other Considerations. 1. Proposers are invited to inspect the facility in advance of proposal submittal. Please contact Jim Topitzhofer, Recreation Services Director, at 612-861- 9394 to arrange an appointment. 2. Proposals are to be submitted on or before 10:00 a.m., October 14, 2008 to Richfield Recreation Services Department, 7000 Nicollet Ave South, Richfield, MN 55423, RE: Community Center Proposal. For additional information contact Jim Topitzhofer, Recreation Services Director, 612-861- . .9394. Proposal amounts will need to be effective for 120 days after the above deadline. 3. The City reserves the right to accept proposals based upon factors other than the lowest price as set forth in the evaluation criteria. 4. The City will not be responsible for any costs incurred by those submitting or preparing competitive proposals. At the request of the Proposer, proposals will be returned after the selection process has been completed and a Proposer selected. 5. The City reserves the right to revise the scope of the project based on budget limitations and other relevant considerations. • 3 • STAFF REPORT AGENDA SECTION: AGENDA ITEM # REPORT # CITY .COUNCIL MEETING OCTOBER 28, 2008 `~ ;~ JIM TOPITZHOFER, RECREATION SERVICES DIRECTOR NAME, Tiros • REPORT PREPARED BY: DEPARTMENT DIRECTOR REVIEW: 1=1 J REVIEWED BY CITY MANAGER: Consent 4H 279 s ITEM FOR COUNCIL CONSIDERATION: Consideration of authorization of the purchase of ten granite tablets from Murphy Granite, Inc. I. RECOMMENDED ACTION: By Motion: Award the attached contract to Murphy Granite in the amount of $40,870 plus sales tax, for ten granite tablets, installation and enaravina services for the Honoring All Veterans Memorial.. II. BACKGROUND Work has progressed on the Honoring All Veterans Memorial including a concrete centerpiece pedestal/foundation with a statue depicting Chuck Lindberg. The next step in completing the memorial is the first set of granite tablets which will bear the engraved names of Veterans. The sale of the engravings is the primary funding source for the Memorial and it is hoped that the installation of the granite tablets will stimulate engravings sales. The foundations for the tablets have been completed and are ready to support 10 granite tablets. The dimensions for each tablet are 7 feet high, 3 feet wide and 10 inches thick, able to feature 120 engraved names. About 350 engravings have been sold to date. Senator Dan Larson and State Representative Paul Thissen both authored a bonding request to fund the completion of the granite tablets and additional items for the Honoring All Veterans Memorial. The project was included in the bonding bill in the amount of $100,000 and made into law in the last legislative session. 1125 HAVM Granite Tablets The foundation work for the tablets is scheduled this fall so that the engravings sold so far can be engraved on the tablets and unveiled on Memorial Day 2009. • Murphy Granite was the lowest cost proposal of three in the amount of $40,870 plus sales tax, which includes the purchase of 10 granite tablets, installation and all engraving services. III. BASIS OF RECOMMENDATION A. POLICY • None B. CRITICAL ISSUES • It is hoped that the engraving tablets will be completed by Memorial Day, 2009, and foundation work performed this fall will keep the project on schedule. C. FINANCIAL • The City received funding from the State of Minnesota in the amount of $100,000 for this portion of the Honoring All Veterans Memorial. D. LEGAL • None • E. ENVIRONMENTAL CONSIDERATIONS • None IV. ALTERNATIVE RECOMMENDATION~S~ • None V. ATTACHMENTS • Contract from Murphy Granite, Inc. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None • • L_J ~~-1 oRICIN FILE coPV MURPHY GRANITE CARVING /^H~o"TE ^ ` ORDER ^ P.O. BOX 40 (320 S.E. MAPLE AVE.) PHONE (800) a1&5836 O V . ~ FAX (320) 597-3080 W COMPANY: RICHMOND, MN 56368-0040 THE UNDERSIGNED HEREBY PURCHASES AND THE MURPHY GRANITE CARVING, RICHMOND,~MN, HEREINAFTER DESIGNATED AS SELLER, HEREBY SELLS, SUBJECT TO THE TERMS AND CONDRIONS HEREIN SET FORTH, THE FOLLOWING DESCRIBED MEMORIAL: ITEM(S) 1 ~ MONUMENT MARKER(S) LETTERING OTHER S R M V O MANUFACTURED IN U.S. MATERIAL OF MEMORIAL Jet Black ^ MANUFACTURED OVERSEAS TABLET slzE 3'0"x0'10"x7'0" Polished Front and Back, Balance FINISH/TYPE Natural Rock • Flat top. no taper -with two dowel holes BASE SIZE Quantity 10 tablets FINISH/TYPE 1-1/4" diameter i 12" deep / 12" off center on bottom MARKER SIZE FINISH/TYPE DESIGN INFO: Per LayOUt TYPE OF LETTERING GOVernm@nt FAMILY NAME 1 SIDE(S) CARVE DESIGN 1 SIDE(S) NOTE: IF THIS MEMORIAL IS A DOUBLE TYPE, THE POSITION OF THE NAMES HAS BEEN CHECKED AND VERIFIED AS CORRECT BY: NOTE: FUTURE CEMETERY LETTERING NOT INCLUDED. IN THIS CONTRACT. Richfield Veterans Project ~; Tablet names to be engraved on one side at this- point on each tablet. Z Stainless steel pins and setting to be provide by us. g contact for main project Jim Topitzhofer (JTopitzhofer@cityofrichfield.org) 612-861-9394 `~ contact for names John Evans (JEvans@cityofrichfield.org) TO BE ERECTED IN Richfield Veterans Project cEMETERY, LOCATED Richfield OT LS LOCATED IN THE SECTION OF CEMETERY, NEAR ~O BE SET ^ CENTER OF LOT. ^ BETWEEN GRAVE SPACE(S). TO BE SET SETS ON ^ WEST ^ EAST SIDE OF LOT N FACES ^ WEST ^ EAST PERMIT/STAKING FEES ^ NONE ^ YES $ AMWNT IF MARKER SET LQ ~ SEND PAYMENT T0: . - SDCTON / CARt=-rA143i NAME 8 PHONE M p~ W E We install on there foundation R~` Contract Jim for setting details Must provide tax~exempt number for file LOT HAS GRAVE SPACES. ^ WITIi NO CEMENT ^ WITH CEMENT FOUNDATION & MOWING BORDER ^ WfTH GRANITE FOUNDATION N ^ FLUSH TO GROUND ^ OTHER W E FOUNDATION BY: ^ COMPANY ^ CEMETERY ^Q CUSTOMER SIZE: OFFlCE SEND MARKING CARD ^ YES ^ NO INSTALL ON OR ABOUT Spring 2009 UNLESS IRJFORESEtTI CAUSES SHALL PREVENT, AND THEN WfT1iIN A REASONABLE TIME THEREAFTER, FOR WHICH I PROMISE TO PAY TO THE ORDER OF MURPHY GRANITE CARVING THE SUM OF TERMS add $8,400 if lettering and carving Is added to back of each tablet 10 x 5840= 58,400 A mouthy finance charge of 1.33% (18% annuaUy); will be charged onall outstanding balances, beginning 60 days after notice of delivery has been sent to the buyer by the setar. Buyer agrees that said memorial shall remain personal properly and title to the same shall be and remain in seller until all sums due and payable hereunder are paid in fuA, erxi in the eVeht of tlefault in the payment of any sum due hereunder, seller may declare the whole sum immetliatey tlue and payable and wtthout legal darnend of process enter upon the premises wherever said property maybe situated, take possession of said property antl QsPose of the same as rte own, in which case at payments hareUntler shall belong9 to the seller aS stipulated and liquidated tlamages, enforce payment by bringing suit on the indebtedness createtl hereby for foreclose its Fen, tt being mutualy agreed that tFre election of the se6er to bring suit on the indebtedness aeatetl hereby shell not be treated as a waiver of any rightto repossess said properly, unless and until any judgment obtained has been satisfied by execution or otherwise. The buyer shaft pay all cost of cdlection, including a reasonable attorneys fee and legal expense, if payment Is not made when due, Any future lettering done in the cemetery may not be an identical match to the lettering done in the ptent. The matching of an existing monument or marker may not be an klenticel match of lettering, granite or size because of age, time, contlitions and different veins of granite. Due to varying cuts of granite, the size may vary from that quoted above. The Buyer agrees to pay for all future lettering on the mertwrial described in thls Contract at the regular lettering rate in effect at the same time such future lettering M necessary, inscribed with such abbreviations es maybe wstomary. Purchaser represents that the memorial adered complies withthe cemetery's rules and regulatbns and can be set in the cemetery and seller makes no warranty or representation to this effect so N the cemetery will not allow the seller to set the memorial the purchaser shall still be responsible for the entire purchase price. Buyer agrees that seller may use buyers name in its sale literature that R shares wah prospective customers. You the bu er ma cancel this urchase at an time rior to PRICE $ 40,870 PERMR FEE $ sALES rAx $ tax exempt TOTAL PRICE $ 40'$70 DOWN PAYMENT $ _..... ._ 4~ 8~ All spelling of Names and dates have been checked and verified as correct midnight of the third business day after the date of this purchase. See NAME Richfield Veterans Project c/o Jim Topitzhofer BUYER attached: notice of cancellation form for an explanation of this right. THIS 31 DAY OF October ~ 08 MONTH MURPHY GRANITE CARVING eY Donald Calhoun ADDRESS 7000 Nlcollet Avenue CITY Richfield, AAN. 55423 PHONe; 612-861.9394 ZIP CODE 33g NO.~o3iy~- ~ 3 • • • AGENDA SECTION: AGENDA ITEM # REPORT # ~- STAFF REPORT CITY COUNCIL MEETING NOVEMBER 25, 2008 Prop. Ordinance 6 280 REPORT PREPARED BY: RICK REGNIER, BUILDING OFFICIAL NAME, TITLE DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of an ordinance amendment to Richfield City Code Appendix D establishing a fee schedule for certain permits and applications. I. RECOMMENDED ACTION: By Motion: • Approve the attached ordinance amendment to Richfield City Code Appendix D establishing a fee schedule for certain permits and applications. • Approve the attached summary of the amendment for publication. II. BACKGROUND The Inspections Division of the Department of Public Safety is recommending that fees for building and driveway permits be increased, effective January 1, 2009. The building permit fees have not been increased since 2001. The proposed building permit fees will be a 6% increase over the current fee schedule. The Community Development Department is recommending changes to the site plan review fee. The Fire Department is recommending changes to fire service fees. The first reading was conducted on October 28, 2008. 1125 Ordinance Amendment to Appendix D Permits and Application Fees III. BASIS OF RECOMMENDATION • A. POLICY • City fees are intended to be established at rates that reflect the current cost of providing the services associated with the fees. B. CRITICAL ISSUES • Minnesota State Statute 462.353 requires that certain fees be adopted by ordinance. C. FINANCIAL • The proposed amendment will increase fee revenues and avoid further subsidization of those services by the general tax base. D. LEGAL • None. E. ENVIRONMENTAL CONCERNS • None. • IV. ALTERNATIVE RECOMMENDATION~S~ • None. V. ATTACHMENTS • Transitory Ordinance No. • Exhibit A, Construction and Related Permit Fees and Charges. • Resolution for Summary Publication of Ordinance No. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A • -i ORDINANCE NO. TRANSITORY ORDINANCE NO. • AN ORDINANCE AMENDING APPENDIX D TO THE RICHFIELD CITY CODE; ESTABLISHING A FEE SCHEDULE FOR CERTAIN PERMITS AND APPLICATIONS THE CITY OF RICHFIELD DOES ORDAIN: Section 1. Background 1.01 Appendix D to the Richfield City Code consists of the schedule of fees adopted by the City Council, including those adopted by resolution and those adopted by ordinance. 1.02 Minnesota Statutes, Section 462.353 requires that certain fees be adopted by ordinance. The City Council. has previously established certain fees by Transitory Ordinance No. The City Council has established other fees by resolution, which resolution is also part of Appendix D. 1.03 The City Council has determined the need to update the schedule of fees under Transitory Ordinance No. Section 2. Fee Schedule Adopted 2.01 The fees set forth in the attached Exhibit A are hereby adopted by ordinance. 2.02 The fees adopted at Section 2.01 of this Ordinance shall be amended only by ordinance. Any fees established by resolution, other than those adopted at Section 2.01 of this Ordinance, may be amended from time to time by resolution of the City Council. Section 3. Effective date; codification. 3.01 This ordinance is effective as of January 1, 2009. 3.02 A copy of this ordinance shall be included in Appendix D to the Richfield City Code, immediately prior to the resolution establishing fees. 3.03 This ordinance supersedes Transitory Ordinance No. to the extent that Transitory Ordinance No. is inconsistent with this ordinance. Adopted by the City Council of the City of Richfield, Minnesota this 25th of November, 2008. Debbie Goettel,-Mayor ATTEST: Nancy Gibbs, City Clerk ~~~ EXHIBIT A • CONSTRUCTION AND RELATED PERMIT FEES AND CHARGES A. Investigation Fees: Work without a Permit: Investigation. Whenever any work for which a permit is required by this code has been commenced without first obtaining said permit, a special investigation shall be made before a permit may be issued for such work. Fee. An investigation fee, ih addition to the permit fee, shall be collected whether or not a permit is then or subsequently issued. The investigation fee shall be equal to the amount of the permit fee required by this code. The minimum investigation fee shall be the same as the minimum fee set forth in Section 2. The payment of such investigation fee shall not exempt any person from compliance with all other provisions of this code nor from any penalty prescribed by law. B. Permit fee refunds: The building official may authorize refunding of not more than 80 percent of-the permit fee paid when no work has been done under a permit issued in accordance with this. code. The building official may authorize refunding of not more than 80 percent of the plan review fee paid when an application for a permit for which a plan review fee has been paid is withdrawn or canceled before any plan reviewing is done. The building official shall not authorize refunding of any fee paid except on written application filed by the original permittee not later than 180 days after the date of fee payment. • C TYPE OF PERMIT SECTION DESCRIPTION FEE OR LICENSE REQUIRING (a) Inspections outside of normal business $60.00- _ hours (minimum charge -two hours) per hour (b) Reinspection fees $60.00 (minimum charge $35.00) per hour - (c) Inspections for which no fee is specifically $60.00 indicated (minimum charge -one-half hour) per hour (d) Additional plan review required by changes, $60.00 additions or revision to plans (minimum per hour charge -two hours) (e) Fee to reissue building inspection record $35.00 card *Or the total hourly cost to the jurisdiction, whichever is the greatest. This cost shall include supervision, overhead, equipment,. hourly wages and fringe benefits of the employee involved. (1) Building Permits 400.03-400.09 $1 to $500 (includes one inspection) $35.00 Each additional inspection $35.00 $501 to $2,000 $23:59 25.00 for the first $500 plus $~5-3.25 each additional $100, or fraction thereof, to and .including $2,000 with a minimum fee of $35.00. $2,001 to $25,000 $~a 73.50 for the first $2,000 plus $44-99 14.75 for each additional $1,000, or fraction thereof, to and includin $25,000. ~~~ • TYPE OF PERMIT OR LICENSE SECTION REQUIRING DESCRIPTION FEE $25,001 to $50,000 $3~5 415.75 for the first $25,000 plus $~-8a-9 10.75 for each additional $1,000, or fraction thereof, to and includin $50,000. $50,001 to $100,000 $643-75 682.50 for the first $50,000 plus $7:88 7.50 for each additional $1,000, or fraction thereof, to and includin $100,000. $100,001 to $500,000 $9~5 1053.50 for the first $100;000 plus $5-68 6.00 for each additional $1,000, or fraction thereof, to and includin $500,000. $500,001 to $1,000,000 $35 3427.75 for the first $500,000 plus $4~5 5.00 for each additional $1,000, or fraction thereof, to and includin $1,000,000. 1,000,001 and up $5;6885 5945.25 for the first $1,000,000 plus $3:65 4.00 for each additional $1,000, or fraction thereof. (2) Driveway, Parking 515.05 (no permit fee for sidewalks) $ 2-98 35.00 Area Permits (3) Swimming 420.00 Permanent or portable pools are based on building permit fees~with a minimum of $ 35.00 (4) Plan Review Fee 400.03-400.09 35% of building permit fee for one-and two family dwelling detached garages and basement remodels Plan review fee for 65% of building permit fee for all other building permits, except no similar buildings fee for the following: (a) Existing single family dwelling minor nonstructural alterations. (b) Single and two family dwelling repair and maintenance work. (c) Commercial and industrial repair and maintenance work not exceeding $1,000 or where plans are not required. Maximum 25% of permit fee based on Minnesota State Building Code 1300.0160 (5) Contractors Charged once each time a contractor applies for $ 5.00 License permit(s) Verification Fee (6) Moving t~~r~~4ir-~s~= 845 #~re-ins~estier~-F~e:- "~,;;+eld $~a:98- ar~d-- Bulldin S ni iTCinc Q~,.hf~oi~ ~_ g et#~er-t#a+~ _ = Moving Permit Fee: INTn Rinhfiolrl _ $ .35-85 50.00 $-~~8 $--~~_ ;~~C~' - ~t{ C - g~t Dro_inor~on~inr. Coo E~ tvi~W. ~ lT/ °~ _ ••JJ _ _ /,f~Ens~~~El~-S+fy~ (~or~nc AArniinn Dormi+ Coo_ X88 ~ ~C~_QII= (o - • • TYPE OF PERMIT SECTION DESCRIPTION FEE OR LICENSE REQUIRING (8) Structure 400.00-400.09 (a) Commercial Demolition Demolition cost as per Building Permit Schedule with a minimum of $ 35-8850.00 (b) .Dwelling One or two-story $ X950.00 Residential -Garage and lesser structure $ 35.00 (9) Plumbing Permit 400.03-400.09 Residential Minimum fee 2% of total job cost with a minimum of $ 35.00 (includes one inspection) .Each additional inspection $ 35.00 (10)Plumbing Permit 400.03-400.09 Commercial/Industrial/Multi-family Based on Total Job cost 2% of Estimated Job cost with a minimum of $ 45.00 (includes one inspection) Each additional inspection $ 35.00 Plan Review 10% of permit fee when the job cost exceeds $50,000 (11)Electrical Permit 400.03-.400.09 Residential (a) Minimum Fee (includes one inspection) $ 35.00 (b) Each additional Inspection $ 35.00 (c) Complete Wiring Fee: $ 150.00 Single Family Dwelling anal each dwelling unit of a two family dwelling and includes not more than three inspections. (d) New Service - up to 200 amps $ 55.00 (e) Temporary Service - (for construction) $ 45.00 (f) Installation, addition alteration, or repair of each circuit or feeder $ 8.00 (g) Swimming pool or exterior hot tub $ 55.00 (12)Electrical Permit 400.03-400.09 Commercial, Industrial and multiple dwellings Commercial (more than two units) and Technology systems: Minimum Fee which includes one inspection $ 45.00 Each additional inspection $ 35.00 (a) Based on total job cost - 2% of estimated job cost with a minimum of $ 45.00 - Over $50,000 -Fee/ $1,000.00 plus 1 1/2% of cost over $50,000.00 (b) .Traffic Signals: Per Intersection $ 185.00 (c) Fire Alarm: Based on 3/4% of cost of electrical job to customer with a minimum of $ 45.00 (d) Carnivals, festivals and similar events plus $35.00 for each service on generator $ 110.00 (13) Electrical 400.03-400.09 Based on 2% of cost of electrical job to customer Permit with a minimum of $ 45.00 Signs (separate electrical permit required for signs) ~'~ ~i TYPE OF PERMIT SECTION DESCRIPTION FEE OR LICENSE REQUIRING (14) Heating, 400.03-400.09 Central Systems and Additions, Alterations and Ventilating, Air Repairs Conditioning and Refrigeration 1 1/2% estimated cost with a minimum of $ 35.00 (Includes one inspection) Residential Each additional inspection $ 35.00 Heating, Ventilating, Air Central Systems and Additions, Alterations Conditioning and and Repairs Refrigeration 1 1/2% estimated cost with a minimum of $ 45.00 Commercial (~5}kl4eatinn ~ 49A A3-488 8g rr , Vept;ila#+e~Air 8'sr~i~; #~efr~gerat+sn C+n rnno T.+n Lc - : aba~ear~ea#~ $---X89:98 $--~-88-88 ~~ (16)Sign Installation 415.01-415.11 (a) .Temporary sign permit $ 35.00 (b) Permanent sign (any size) $ 75.00 Building permit is required for sign support structures Fees based on building permit fee schedule BOLD represents added/amended fees A. ZONING, LAND USE AND RELATED CHARGES • TYPE OF PERMIT SECTION DESCRIPTION OR LICENSE REQUIRING FEE (1) *Planned Unit 542 (a) $500 plus $5/ $1,000 of project value up to a Development maximum fee of $ 3,500.00 (b) PUD Plan Amendment fee -major $ 550.00 (c) PUD Plan Amendment fee -minor $ 250.00 (2) Site Plan Review 547 (a) $500 plus $5 / $1,000 of project value to a maximum fee of $ 3,500.00 (b) Change in use or 1°?la~- Ip an Admer+t $ 558:88 amendment fee- other than building 350.00 addition. $- -~~888:88 (3) *Variance 547 Residential $ 250.00 Non Residential $ 450.00 Extension $ 75.00 Variance Appeal Residential and Non Residential $ 150.00 (4) *Conditional Use 547 (a) change in use or amendment other than $ 350.00 Permit building addition (b) new construction or building addition up to $ 600.00 20,000 sq. Ft. (c) new construction or building addition over 20,000 sq. Ft. $600 + $.50/$1,000 of construction value up to a maximum fee of $ 3,500.00 W • • TYPE OF PERMIT SECTION DESCRIPTION FEE OR LICENSE REQUIRING (5) Interim Use Permit 547 $ 350.00 (6) *Zoning District 547 $ 500.00 Chan e (7) *Subdivision 500.01-500.05 $ 500.00 Approval Subdivision 500.05 $ 350.00 Waiver . Subd. 2 "Any additional expense of notification necessitated by applicants request for continuance will be charged to the applicant. (8) Street Vacation 820 $ 350.00 (9) Appeal to Board of 547 ~ $ 350.00 Adj. & Appeals (10)Special Request to $ 350.00 City Council (11)Zoning $ 50.00 Compliance Letter (12) Comprehensive $ 500.00 Plan Amend. (13) Plat: preliminary & $ 500.00 final BOLD represents added/amended fees II. PUBLIC WORKS FEES TYPE OF PERMIT OR LICENSE SECTION REQUIRING DESCRIPTION FEE (8) Utility Services Sanitary Sewer 700.05 All land uses New Service $ 100.00 Repair $ 100.00 Disconnect $ 100.00 Replacement $ 100.00 Water Service 715.01 All land uses New Service $ 100.00 Repair $ 100.00 Disconnect $ 100.00 Replacement $ 100.00 Turn on/off $ 35.00 Meter Installation ~ $ 35.00 Private Hydrant $ 50.00 Storm Sewer 720 All land uses New Service $ 100.00 Repair ~ $ 100.00 Disconnect $ 100.00 ~p~~ • TYPE OF PERMIT SECTION DESCRIPTION FEE OR LICENSE REQUIRING Re lacement $ 100.00 FIRE SERVICES FEES TYPE OF PERMIT OR LICENSE SECTION REQUIRING DESCRIPTION FEE (6) Fire Extinguishing Based on Building Permit fee schedule with a System Permit minimum of: $ 50.00 Plan review fee: 65% of building permit fee, except no fee for the following: (a) no charge for valuation of $1,000 or less (7) Fire Alarm Based on Building Permit fee schedule with a Systems minimum of: $ 50.00 Plan review fee: 65% of building permit fee, except no fee for the following: (a) no charge for valuation of $1,000 or less (8) Flammable or Combustible ~i~-in-e~ $ aA-AB Liquid or Gas ~er' + +'~ i~ ° ~9 9 - Storage Tanks and , Pi in Tanks (installation or modification) $ 150.00 Installation or alteration of piping Each unit or dispenser $ 50.00 Underground Tank Removal $ 100.00/Tank A. MISCELLANEOUS FEES TYPE OF PERMIT SECTION DESCRIPTION OR LICENSE REQUIRING FEE (3) Antenna 426 (a) CWTS antenna permit application fee $ 75.00 Commercial (b) Antenna permit fee for additional antennas $ 25.00 Wireless added to an existing antenna location Telecommunication Service CWTS • ~D .' B RESOLUTION NO. RESOLUTION APPROVING SUMMARY PUBLICATION,OF BILL NO. WHEREAS, the City has adopted the above referenced ordinance; and WHEREAS, the verbatim text of the ordinance is cumbersome, -and :the expense of publication of the complete text is not justified; and WHEREAS, the. following summary clearly informs the public of the intent and effect of the ordinance. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield that the. following summary is hereby approved for official publication: SUMMARY PUBLICATION BILL NO. AN ORDINANCE AMENDING APPENDIX D TO THE RICHFIELD CITY CODE; ESTABLISHING A FEE SCHEDULE FOR CERTAIN PERMITS-AND APPLICATIONS On November 25, 2008, the Richfield City Council adopted an ordinance designated as Bill No. ,the title of which. is stated above. This summary of the ordinance is published pursuant to Section 3.12 of the Richfield City Charter. The ordinance adopts a fee schedule for certain permits and approvals related to construction, land use, utilities services and certain fire services. The ordinance increases certain fees related to building and driveway permits, changes to zoning site plan review fees and fire service fees. Copies of the ordinance. are available for public inspection in the office of the City Clerk during normal business hours or upon request by calling 612-861-9860 of the Public Safety Department, Inspections Division. Nancy Gibbs, City Clerk BE IT FURTHER RESOLVED, that the City Clerk is directed to keep a copy of the ordinance in her office at City Hall for public inspection and to post a full copy of the ordinance in a public place in the City for a period of two weeks. 2008. Adopted by the City Council of the City of Richfield, Minnesota this 25th day of November • ATTEST: Debbie Goettel, Mayor Nancy Gibbs, City Clerk • J AGENDA SECTION: Resolutions AGENDA ITEM # 7 REPORT # 281 STAFF REPORT CITY COUNCIL MEETING NOVEMBER 25, 2008 REPORT PREPARED BY: DEPARTMENT DIltECTOR REVIEW: CHRIS REGIS, FINANCE MANAGER ~ NAME, TITLE NAME, • REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration the attached resolution awarding the sale. of $9,480,000 General Obligation (G.O.) Capital Improvement Bonds, Series 2008A. I. RECOMMENDED ACTION: By Motion: Approval of the attached resolution awarding the sale. of $9,480,000 General Obligation Capital Improvement Bonds, Series 2008A, Fixing their. form and specifications; Directing their execution and delive ;and rovidin their a ment. II. BACKGROUND • On October 28, 2008, the City Council adopted a resolution providing for the ,sale of General Obligation Capital Improvement Bonds, Series 2008A, to provide funding for the construction of a new Police/Fire/City Hall Facility. • Bids on the G:O. Capital Improvement. Bonds are due in the offices of Ehlers & Associates, Inc. on November 25; 2008. A representative from Ehlers & Associates, Inc. will be at the City Council meeting to recommend the . successful bidder and review attached documents, and provide information that is absent from the resolution and available only after the bidding on the .certificates has closed. • Following Ehlers & Associates, Inc. recommendation it would be appropriate for the City Council to award the bond sale to the qualified buyer and undertake . other related actions as necessary as delineated in the approving resolution. The closing on the bonds,is scheduled for December 18, 2008. • In order to issue bank-qualified bonds, which generally provide more favorable interest rates, the sale of.the 2008 series of bonds and 2009 series of bonds 1125Capital Improvement Bonds Award of Sale must be separated by 15 days. By separating the sales by 15 days, both series - of bonds will be treated as separate bond issues for tax purposes. Therefore, \ the 2008 series sale is being brought before Council for approval on November 25, 2008. and the -2009 series, in order to comply with the legal timing requirements, will be brought before Council at a special City Council meeting on.December 10, 2008. _ III. BASIS OF RECOMMENDATION A. POLICY • ,The City Council approved'the call for sale of G.O. Capital ..Improvement Bonds, Series 2008A at the October 28, 2008 City Council meeting. • The new Police/Fire/City Hall Facility is included in~the City's 2008 Capital Improvement Budget and 2b09-2012 Capital Improvement Plan. • At the June 24, 2008, the City Council approved the five-year Capital Improvement Budget and Plan prepared in compliance with Minnesota . Statutes 475.521. • Preliminary approval was also granted to issue capital improvement bonds for the new Police/Fire/City Hall Facility at the June 24, 2008 City Council meeting. . B. CRITICAL ISSUES • The issuance ofithe G.O. Capital Improvement Bonds is an important piece of the financing of the new Police/Fire/City Hall Facility. • In order to meet the legal timing requirements for the sale and issuance of the 2009A G.O. Capital Improvement Bonds a special City Council meeting will be necessary on December 10, 2008 at 6:00 p.m. C. FINANCIAL • The estimated total cost of the new Police/Fire/City Hall is estimated to be $22,250,000. • Funding for the project will be a combination of internal sources and the issuance of the capital improvement bonds. Sources and uses of the project are as follows: • Sources' Bond Proceeds $13,650,000 - PERA Pension Refund 7,600;000 ' Cash on Hand ~ 1,000,000 Total $22,250,000 Uses Construction Costs $21,650,000 Site Acquisition 600,000 Total $22,250;000 • The total par amount of the bonds to be issued is $14,030,000. The Series 2008A Bonds which are being considered for award of sale on November 25, 2008 have a par value of $9,480,000, while the 2009A Bonds which will be considered for award of sale on December 10, 2008 fiave a par value of $4,550,000. • Net proceeds to be used for the project, after underwriter's discount, costs of issuance, and capitalized interest will total $13,650,000 for both issues. • The estimated annual tax levy for both bond issues, has been structured to start at a lower amount in year one and then increase in . years two and three, and then level off to an average of $1,239,232 in .years .four through twenty. ~• Accordingly, the estimated annual increases in taxes due to the issuance of these bonds for a residential property valued at $250,000 will be ,approximately $48.57 in year one, an additional $25.62 in year _ two, and an additional $16.48 in year three for a total .increase after year three of $90.67. D. LEGAL ' • Legal Counsel has been involved in the bond sale transactions as _ bond counsel to the City. • The sale of the two series of bonds, 2008 and 2009, must be _ separated by a minimum of 15 days in order for the two bonds to be considered legally separate issues for tax purposes. E. ENVIRONMENTAL CONSIDERATIONS • N/A IV. ALTERNATIVE RECOMMENDATION~S~ • None. V. ATTACHMENTS , • ~ A Resolution Awarding the Sale of $9,480,000 General Obligation Capital Improvement Bonds, Series 2008A, fixing their form and specifications; directing their execution and delivery-; and providing for their payment. VI. PRINCIPALPARTIES EXPECTED AT MEETING • Rebecca Kurtz, Ehlers & Associates, Inc. ~- i Extract of Minutes of Meeting of the City Council of the City of Richfield, Hennepin County, Minnesota Pursuant to due call and notice thereof, a regular meeting of -the City Council of the City of Richfield, Minnesota, was duly held in the City Hall in said City on Tuesday, November 25, 2008, commencing at 7:00 P.M. The following members were present: and the following were absent: The Mayor announced that the next order of business was consideration of the proposals which had been received for the purchase of the City's General Obligation Capital Improvement Plan Bonds, Series 2008A, in the aggregate principal amount of $9,480,000. The City Manager presented a tabulation of the proposals that have been received in the manner specified in the Terms of Proposal the Bonds. The proposals are as set forth in Exhibit A attached. After due consideration. of the proposals, Member then introduced the following written resolution, the reading of which was dispensed with by unanimous consent, and moved its adoption: • /'~~ RESOLUTION NO. A RESOLUTION AWARDING THE SALE OF GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS, SERIES 2008A, IN THE AGGREGATE .PRINCIPAL AMOUNT OF $9,480,000; FIXING .THEIR FORM AND SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED By the City Council of the City of Richfield, Minnesota (the "City"), as follows: Section 1. Background. 1.01. Statutory Authorization. The City is authorized by Minnesota Statutes, section 475.521 (the "Act"), to finance certain capital improvements under an approved capital improvement plan by the issuance of general obligation bonds of the City payable from ad valorem taxes. Capital improvements include acquisition or betterment of public lands, buildings or other improvements for the purpose of a city hall, library, public safety facility and public works facilities (excluding -light rail transit or any activity related to it, or a park, road, bridge, administrative building other than a. city hall, or land for any of those activities). 1.02. Capital Improvement Plan Authorizing Issuance of Bonds. On June 24, 2008, the City held a public hearing with respect to a five-year capital improvement plan (the "Plan") and the issuance of bonds, in the maximum principal amount of $22,000,000, to finance planned capital improvements, all in accordance with the Act. The Plan authorizes issuance of bonds to pay the cost of construction of a new Police/Fire/City Hall Facility (the "Project"). 1.03. No Petition for a Referendum Received. The City Council has determined that, within 30 days after the hearing, no petition for a referendum on issuance of bonds pursuant to the Plan was received by the City in accordance with the Act. 1:04. Estimated Total Cost of Capital Improvement. The City estimates that the total cost of the Project is at least $22,000,000, including capitalized interest, costs of issuance, and bond discount. The proceeds of the Bonds (hereinafter defined) in the amount of $9,480,000 will be expended as follows: Project Description & Designation Deposit to Project Construction Fund Deposit to Capitalized Interest Fund Costs of Issuance Underwriter's Compensation Total $9,220,460 86,040 55;000 118,500 $ .4 1.05. Determinations of the City in Compliance with the Act. As required by the Act, the City has determined that: (i) the expected useful life of the Project will be at least five years; and Total Cost 2 ~-3 (ii) the amount of principal .and interest due in any year on all outstanding bonds issued by the City under the Act, including the Bonds, will not exceed 0.16 percent of the taxable market value of property in the City for taxes payable in 2008. 1.06. Issuance of tYie Bonds. It is necessary and expedient to the sound financial management of the affairs of the City to issue its General Obligation Capital Improvement Plan Bonds, Series 2008A (the "Bonds"), in the aggregate principal amount of $9,480,000, pursuant to the Act to provide financing for the Project. Section 2. Sale of Bonds. 2.01. Award to the Purchaser and Interest Rates. The proposal of (the "Purchaser") to purchase the Bonds of the City described in the Terms of Proposal thereof is hereby found and determined to be a reasonable offer and is hereby accepted, the proposal being to purchase the Bonds at a price of $ (par amount of $9,480,000.00, [plus original issue premium of $ ,] [less original issue discount of $ ,] less underwriter's discount of $ ), plus accrued interest to date of delivery, if any, for Bonds bearing interest as follows: Year Interest Rate • 2011 2012 2013 2014 2015 -~ 2016 2017 2018 2019 2020 True interest cost: Year Interest Rate 2021 2022 2023 2024 2025 2026 2027 2028 2029 2.02. Purchase Corxtract. The sum of $ ,being the amount proposed by the Purchaser in excess of $ ,shall be credited to the Debt Service Fund hereinafter created or deposited in the Construction Fund hereinafter created, as determined by the City Finance Manager in consultation with the City's financial advisor. The City Finance Manager is directed to retain the good faith check of the Purchaser, pending completion of the sale of the Bonds, and to return the good faith- checks of the unsuccessful proposers. The Mayor and City Manager are directed to execute a contract with the Purchaser on behalf of the City. 2.03. Terms and Principal Amounts of Bonds. The City will forthwith issue and sell the Bonds pursuant to the Act to the Purchaser in the total principal amount of $9,480,000. The Bonds will be originally dated as of December 18, 2008, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-1 upward, bearing interest as above set forth and maturing serially on February 1 in the years and amounts as follows: • ~- ~1 Year Amount Year Amount 2011 2021 2012 2022 2013 2023 2014 2024 2015 2025 2016 2026 2017 2027 2018 2028 2019 2029 2020 2.04. Optional Redemption. The City may elect on February 1, 2019, and on any day thereafter to prepay Bonds due on or after February 1, 2020. Redemption may be in whole or in part and if in part, at the option of the City and iii such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in Section 7 hereof) of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such n,.aturity to be redeemed. Prepayments will be at a price of par plus accrued interest. [2.05. Term Bonds. To be completed if Term Bonds are requested by the Purchaser.] Section 3. Registration and Payment. 3.01. Registered Form. The Bonds will be issued only in fully registered form. The interest thereon and,, upon surrender of each Bond, the principal amount thereof, is payable by check or draft issued by the Registrar described herein. 3.02. Dates: Interest Payment Dates. Each Bond will be dated as of the last interest payment date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case the Bond will be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on February 1 and August 1 of each year, commencing August 1, 2009, to the registered owners of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not that day is a business day. 3.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent and paying agent (the "Registrar"). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Re ig stet. The Registrar must keep at its principal corporate trust office a bond register in which the Registrar provides for the registration of ownership of Bonds an%i the registration of transfers of Bonds entitled to be registered or transferred. (b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized 4 ~- j by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until that interest payment date. (c) Exchange of Bonds. When Bonds are surrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity as requested by the registered owner or the owner's .attorney in writing. (d) Cancellation. Bonds surrendered upon transfer will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer, the Registrar may refr~se to transfer the Bond until the Registrar is satisfied that tYie endorsement on the Bond or separate instrument of transfer is valid. and genuine and that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make transfers which. it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person :in whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is overdue or not, -for the purpose of receiving payment of, or on account of, the principal of and interest on the Bond and for all other purposes and payments so made to registered owner or upon the owner's order will be valid and effectual to satisfy-and discharge the liability upon the Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner thereof for a transfer of Bonds, sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to the transfer. (h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, ,stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it and as provided by law, in which both the City and the Registrar must be named as obligees. The Bonds so surrendered to the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment. (i) Redemption. In the event any of the Bonds are called for redemption, notice thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid) to the registered owner of each Bord to be redeemed at the address shown on the registration books kept by the Registrar and by publishing the notice if required by law. Failure to give notice by publication or by mail to any • registered owner, or any defect therein, will not affect the validity of the proceedings for the 5 ~" redemption of Bonds. Bonds so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are,on deposit with the place of payment at that time. 3.04. Appointment of Initial Re ig'strar. The City appoints Wells Fargo Bank, N.A., Minneapolis, Minnesota, as • the initial Registrar. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the City Finance Manager must transmit to the Registrar monies sufficient for the payment of all principal and interest then due. 3.05. Execution, Authentication and Delivery. The Bonds will be prepared under the direction of the City Manager and executed on behalf of the City by the signatures of the Mayor and the City Manager, provided that those signatures may be printed, engraved or litho;.~aphed facsimiles of the originals. If an of.~cer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such officer before the delivery of a Bond, that signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed ' by the same representative. The executed certificate of authentication on a Bond is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and .authenticated, the City Manager will deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the purchase price. 3.06. Temporar~Bonds. The City may elect to deliver in lieu of printed definitive.Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 3. Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled. Section 4. Form of Bond. 4.01. Execution of the Bonds. The Bond will be printed or typewritten in substantially the following form: (The remainder of this page is intentionally left blank. j 6 ~' [Form of Bond] • No. R- UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF RICHFIELD GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BOND SERIES 2008A Interest Date of Rate Maturity Original Issue CUSIP February 1, 20_ December 18, 2008 • Registered Owner: Cede & Co. The City of Richfield, Minnesota, a duly organized and existing municipal corporation in Hennepin County, Minnesota (the "City"), acknowledges itself to be indebted and for value received hereby promises to pay to the Registered Owner specified above, or registered assigns, the principal sum of $ on the maturity date specified above, payable February 1 and August 1 in each year, commencing August 1, 2009, to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by Wells Fargo Bank, N.A., Minneapolis, Minnesota, as Bond Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. The City may elect on February 1, 2019, and on any day thereafter to prepay Bonds due on or after February 1, 2020. Redemption may be in whole or in part and if in part, at the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will notify Depository Trust Company ("DTC") of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such. maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued interest. The City Council has designated the issue of this Bond as a "qualified tax-exempt obligation" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code") relating to disallowance of interest expense for financial institutions and within the $10 million limit allowed by the Code for the calendal• year of issue. This Bond is one of an issue in the aggregate principal amount of $9,480,000 all of like original issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued pursuant to resolutions adopted by the City Council on June 24, 2008, and November :?5, 2008 (the "Resolutions"), for the purpose of providing money to defray the expenses incurred ar~d to be incurred in making certain capital improvements, pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, section 475.521, and the principal hereof and interest hereon are payable from ad valorem taxes as set forth in the Resolutions to which 7 ~- $ reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to • levy additional ad valorem taxes on all taxable property. in the City in the event of any deficiency in taxes pledged, which taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in the denominations of $5,000 or any integral rriultiple thereof of single maturities. As provided in the Resolutions and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing, upon surrender hereof together with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or the owner's attorney. Upon such transfer the City will cause a new Bond to be issued in the name of the transferee or registered owner, of the same principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer. The City and the Registrar may deem and treat the person in whose name this :dond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes;. and neither the City nor the Registrar will be affected by any notice to the contrary. • IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the home rule charter of the City and the Constitution and laws of the State of Minnesota, to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, de exist, have happened and have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional, statutory, or charter limitation of indebtedness. This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolutions until the Certificate of Authentication hereon has been executed by the Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Richfield, Hennepin County, Minnesota., by its City Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the Mayor and City Manager and has caused this Bond to be dated as of the date set forth below. Dated: December 18, 2008 CITY OF RICHFIELD, MINNESOTA (Facsimile) (Facsimile) Mayor City Manager 8 ~~ CERTIFICATE OF AUTHENTICATION • This is one of the Bonds delivered pursuant to the Resolutions mentioned within. WELLS FARGO BANK, N.A. By The following abbreviations, when used in the inscription on the face of this Bond, will be construed as though they were written out in full ;according to applicable laws or regulations: TEN COM -- as tenants in common UNIF GIFT MIN ACT Custodian (Gust) (Minor) TEN ENT -- as tenants by entireties under Uniform Gifts or Transfers to minors Act, State of JT TEN -- as joint tenants with right of survivorship and not as tenants in common Additional abbreviations may also be used though not in the above list. 9 ~- r~ ASSIGNMENT • For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities Transfer Agent Medallion Program ("STAMP"), the Stock- Exchange Medallion Program ("SEMP"), the New York Stock Exchange, Inc. Medallion Signatures Program ("MSP") or other such "signature guarantee program" as may be determined by the Registrar in addition to, or in substitution for, STEMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. The Registrar will not effect transfer of this Bond unless the information concerning the assignee • requested below is provided. Name .and Address: (Include information for all joint owners if this Bond is held b~~ joint account.) Please insert social security or other identifying number of assignee • 10 ~-~( PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Bond has been registered on the books of the Registrar in the name of the person last noted below. Date of Registration Registered Owner Cede & Co. Federal ID #13-2555119 Signature of Officer of Re ig stray [End of form of Bond] 4.02. Approving Le ag_l Opinion. The City Manager is directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and to cause the opinion to be .printed on or accompany each Bond. Section 5. Payment; Security; Pledges and. Covenants. 5.01. Debt Service Fund. The Bonds are payable from the General Obligation Capital Improvement Plan Bonds, Series 2008A Debt Service Fund (the "Debt Service Fund") hereby created, and the proceeds of the ad valorem taxes (the "Taxes") hereinafter levied are hereby pledged to the Debt Service Fund. If a payment of principal or interest on the. Bonds becomes due when there is not sufficient money in the Debt Service Fund to pay the same, the City Finance Manager will pay such principal or interest from the general fund of the City,. and the general fund will be reimbursed for those advances out of the proceeds of the Taxes levied by this resolution, when collected. There is appropriated to the Debt Service Fund • (i) capitalized interest financed from Bond proceeds, if any, (ii) any amount over the minimum purchase price paid by the Purchaser, to the extent designated for deposit in the Debt Service Fund in accordance with Section 2.02, and (iii) the accrued interest paid by the Purchaser upon closing and delivery of the Bonds, if any. 5.02. Construction Fund. The proceeds of the Bonds, less the appropriations made in Section 5.01 hereof, together with any other funds appropriated for the Project and Taxes collected during the construction of the Project will be deposited in a separate construction fund (the "Construction Fund") to be used solely to defray expenses of the Project and the payment of principal and interest on the Bonds prior to the completion and payment of all costs of the Project. Any balance remaining in the Construction Fund after completion of the Project may be used to pay the cost in whole or in part of any other capital improvement instituted under the Act upon action by the City Council. When the Project is completed and the cost thereof paid, the Construction Fund. is to be closed and subsequent collections of Taxes for the Project are to be deposited in the Debt Service Fund. 5.03. Pledge of Taxes. For the purpose of paying the principal of and interest on the Bonds, there is levied a direct annual irrepealable ad valorem t<ax upon all of the taxable property in the City, to be spread upon the tax rolls and collected with and as part o?' other general taxes of the City. The tax will be credited to the Debt Service Fund and will be in the years and amounts as shown in Exhibit B. 5.04. Certification to Taxpayer Services Division Manager as to Debt Service Fund Amount. It is determined that the estimated collection of the foregoing Taxes will produce at least five percent in excess of the amount needed to meet when due, the principal and interest payments on the Bonds. The tax levy herein provided will be irrepealable until all of th.e Bonds are paid, provided that at the time the City makes • its annual tax levies the City Finance Manager may certify to the Taxpayer Services Division Manager of 11 ~~~a Hennepin County the amount available in the Debt Service Fund to pay principal and interest due during the • ensuing year, and the Taxpayer Services Division Manager will thereupon reduce the levy collectible during such year by the amount so certified. 5.05. Certificate of Taxpayer Services Division Manager as to Registration. The City Manager is authorized and directed to file a certified copy of this resolution with the Taxpayer Services Division Manager and to obtain the certificate required by Minnesota Statutes,. Section 475.63. Section 6. Authentication of Transcript. 6.01. City Proceedings and Records. The officers of the City are authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to the ~~alidity and marketability of the Bonds, and such instruments, including any heretofore furnished, may be deemed- representations of the City as to the facts stated therein. 6.02. Certification as to Official Statement. The Mayor, City Manager, and City Finance Manager are authorized and directed to certify that they have examined the Official Statement prepared and circulated in connection with the issuance and sale of th~~ Bonds and that to the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. ~~ 6.03. .Payment of Costs of Issuance. The City authorizes the Purchaser to forward the amount • of Bond proceeds allocable to the payment of issuance expenses (other than amounts payable to Kennedy & Graven, Chartered, as Bond Counsel) to U.S. Trust Company, Minneapolis, Minnesota on the closing date for further distribution as directed by the City's financial advisor, Ehlers & Associates, Inc. Section 7. Tax Covenant. 7.01. Tax-Exempt Bonds. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the "Code"), and the Treasury Regulations promulgated thereunder, in effect at the time of such actions, and that it will take or cause its officers, employees or agents to take all affirmative action within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made applicable to the Bonds. 7.02. Not Private .Activity Bonds. The City further covenants not to use the proceeds of the Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds. to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 7.03. 4ualified Tax-Exempt Obli at~ions. In order to qualify the Bonds as "qualified tax-exempt obligations" within the .meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representations: (a) the Bonds are not "private activity bonds'' as defined in Section 141 of the Code; • 12 '~- ~ 3 (b) the City .hereby designates the Bonds as "qualified tax-exempt obligations" for • purposes of Section 265(b)(3) of the Code; (c) the reasonably anticipated amount of tax-exempt obligations (other than any private activity bonds that are not qualified 501(c)(3) bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 2008 will not exceed $10,000,000; and (d) not more than $10,000,000 of obligations issued by the City during calendar year 2008 have been designated for purposes of Section 265(b)(3) of the Code. 7.04. Procedural Requirements. The City will use its best efforts to .comply with any federal procedural requirements which may apply in order to effectuate the designations made by this section. Section 8. Book-Entry System; Limited Obligation of City. 8.01. DTC. The Bonds will be initially issued in the form of a separate single typewritten or printed fully registered Bond for each of the maturities set forth in Section 1.03 hereof. Upon initial issuance, the ownership of each Bond will be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns ("DTC")..Except as provided in this section, all of the outstanding Bonds will be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC. 8.02. Participants. With respect to Bonds registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC, fthe City, the Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers, banks and other financial institutions from • time to time for which DTC holds Bonds as securities depository (the "Participants") or to any other person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a registered owner of Bonds, as shown by-the registration books kept by the Registrar) of any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other person, other than a registered owner of Bonds, of any amount with respect to principal of, premium, if any, cr interest on the Bonds. The City, the Registrar and the Paying Agent may treat and consider the person in whose name each Bond is registered in the registration books kept by the Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal, premium and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes. The Paying Agent will pay all principal of, premium, if any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the registration books kept by the Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City's obligations with respect to payment of principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums so paid. No person other than a registered'owner of Bonds, as shown in the registration books kept by the 1Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City Manager of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words "Cede & Co: ' will refer to such new nominee of DTC; and upon receipt of such a notice, the City Manager will promptly deliver a copy of the same to the Registrar and Paying Agent. 8.03. Representation Letter. The City. has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (the "Representation Letter") which will govern payment of principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or 13 ~- ~y- Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action necessary for all representations of the City in the Representation Letter with respect to the Registrar and Paying Agent, respectively, to be complied with at all times. 8.04. Transfers Outside Book-Entry S sy tem. In the event the City, by resolution of the City Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the Participants, of the availability through DTC of Bond certificates. In such event the City will issue, transfer and exchange Bond certificates as requested by DTC and any other registered owners in accordance with the provisions of this Resolution. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the Registrar will authenticate Bona. certificates in accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 8.05. Payments to Cede & Co. ,Notwithstanding any other provision of this Resolution to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with respect to principal of, premium, if any, and interest on the Bond and notices with respect to the Bond will be made and given, respectively in the manner provided in DTC's Operational Arrangements, as set forth in the Representation Letter. Section 9. Continuing Disclosure. {~ 9.01. City Compliance with Provisions of Continuing Disclosure Certificate. The City hereby • covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this. Resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be considered an event of default with respect to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this section. 9.02. Execution of Continuing Disclosure Certificate. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate executed by the Mayor and City Manager and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from time to time in accordance with the terms thereof. Section 10. Defeasance. When all Bonds and all interest thereon have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and full payment of the principal of and interest on the Bonds will remain in full force and effect. The City may discharge all Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full. If any Bond should not be .paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. • 14 ~- I ~ Passed and adopted this 25th day of November, 2008. • CITY OF RICHFIELD, MINNESOTA Mayor City Manager Attest: City Clerk L~ • 15 ~-l ~1 STATE OF MINNESOTA ) • ) COUNTY OF HENNIPIN ) SS. CITY OF RICHFIELD ) I, the undersigned, being the duly qualified and acting City Clerk of the City of Richfield, • Minnesota (the "City"), do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on November 25, 2008, with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to the issuance and sale of the City's General Obligation Capital Improvement Plan Bonds, Series 2008A, in the aggregate principal amount of $9,480,000. WITNESS My hand ofEcially as such City Clerk and the corporate seal of the City this day of , 2008. Cit<r Clerk Richfield, Minnesota (SEAL) • ~1- i ~ • STATE OF MINNESOTA CERTIFICATE OF TAXPAYER SERVICES DIVISION MANAGER AS COUNTY OF HENNEPIN TO TAX LEVY AND REGISTRATION I, the undersigned Taxpayer Services Division Manager of Hennepin County, Minnesota, hereby certify that a resolution adopted by the City Council of the City of Richfield, Minnesota (the "City"), on November 25, 2008, levying taxes for the payment of the City's General Obligation Capital Improvement Plan Bonds, Series 2008A, in the aggregate principal amount of $9,480,000, dated as of December 18, 2008, has been filed in my office and said obligations have been registered on the register of obligations in my office and that such tax has been levied as required by law. V'~RTNESS My hand and official seal this day of , 2008. Taxpayer Services Division Manager Hennepin County, Minnesota • (SEAL) Deputy • ~ -a o EXHIBIT B . Tax Levy Schedule Year* Tax Levy 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 • 2028 * Year tax levy collected. RC145-593 (JAE) 341977V 1 • B-1 AGENDA SECTION: AGENDA ITEM # ' REPORT # STAFF REPORT CITY COUNCIL MEETING NOVEMBER 25, 2008 Resolutions 8 282 REPORT PREPARED BY: CHRIS REGIS, FINANCE MANAGER NAME, TITLE • • DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of the attached resolution awarding the sale of $515,000 General Obligation G.O.. Ca ital Notes, Series 20086. I. RECOMMENDED ACTION: By Motion: Approval of the attached resolution awarding the sale of $515,000 G.O. Capital Notes, Series 20086; Fixing their form and specifications; Directing their execution and delivery and providing for their a ment. II. BACKGROUND • t e cto er ity -ounce mee ing, the City Council approved a resolution calling for the sale of the G,O. Capital Notes, Series 20086 • Bids on the capital notes are due in the. offices of Ehlers & Associates, Inc. on .Tuesday November 25, 2008. A representative from Ehlers & Associates, Inc. will be at the City Council meeting to recommend the successful b"idder and review attached documents, and provide information that is absent from the resolution and available only after the bidding on the capital notes has closed. - • Following Ehlers & Associates, Inc. recommendation it would be appropriate for the City Council to award the bond sale to the qualified buyer and undertake other related actions as necessary as delineated in the approving resolution. The closing on the G.O. Capital Notes is scheduled for December 18, 2008. • For the past several years the City has funded equipment purchases through its General tax levy This was done to save the City the cost of issuing bonds. However, with the advent of state imposed levy limits this option is no longer available: Therefore, the use of capital notes Is now part of the budget process and the funding of equipment purchases. 1125 20086 Capital Note Call For Sale • These capital notes are short-term borrowing supported- by a separate tax levy outside o f imposed levy limits. I I. BASIS OF COMMENDATION OLICY • e issuance o eries apital Notes is the third instance of capital notes for the City of, Richfield. - _ B. RITICAL SSLTES • FINANCIAL • e api a otes wi a financed by tax levies in 2009 and 2010. • The tax levy amounts will be an estimated $287,117 in 2009 and ` $281,873 in 2010. Equipment to be purchased, is as follows: Estimated Description Cost 1 - ne on ruc 45,000 _ 2 -Mowers 26,000 3 -Skid Steer Loader - 34,000 1 -One Ton Truck 47,000 " 1 -Brush Chipper 70,000 1 -Ice ResurFacer 115,000 4 -Mid-Size Sedans 80;000 . 1 -Sports lJtility Vehicle 28,000 5 -Full-Size Police Squads 135,000 1 -Records Archival System Scanners 6,050 2 -Network Servers 11,980 Fiber Optic Network Construction 104,000 _ . Total 702,030 Funding Tax Levy , 136,502 G.O. Capital Notes 498,000 Cash on Hand 67,528 Total 702,030 D. LEGAL _ • ega ounse as een mvo ve in the bond sale transactions as bond counsel to the City. E. ENVIRONMENTAL ONSIDERATIONS • 11 V. ALTERNATIVE KECOMMENDATION(S 1 I • ivone. ATTACHMENTS • eso ution~r 20086. I. RINCIPAL PARTIES • e ecca ur1 ng for the 5aie of ~5~ 5 ECTED AT EETING ~ erl s~~sociates, nc. ,000 G.O. Capital Notes, Series 8-- Extract of Minutes of Meeting of the City Council of the City of Richfield, Hennepin County, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Richfield, Minnesota, was duly held in the City Hall in said City on Tuesday, November 25, 2008, commencing at 7:00 P.M. The following members were present: and the following were absent: *~x* *~* **:~ The Mayor announced that the next order of business was consideration of the proposals which had been received for the purchase of the City's General Obligation Capital Notes, Series 2008B, in the aggregate principal amount of $515,000. The City Manager presented a tabulation of the proposals that had been received in the manner specified in the Terms of Proposal for the Notes. The proposals are as set forth in Exhibit A attached. After due consideratior. of the proposals, Member then introduced the following written resolution, the reading of which was dispensed with by unanimous consent, and moved its adoption: 8-a • RESOLUTION NO. A RESOLUTION AWARDING THE SALE OF GENERAL OBLIGATION CAPITAL NOTES, SERIES 2008B, IN THE AGGREGATE PRINCIPAL AMOUNT OF $515,000; FIXING THEIR FORM AND .SPECIFICATIONS; DIRECTING THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR THEIR PAYMENT BE IT RESOLVED By the City Council of the City of Richfield, Minnesota (the "City"), as follows: Section 1. Sale of Notes. 1.01. Authorization. It is hereby determined that: (a) the City is authorized by Minnesota Statutes, Chapter 475 and Sections 410.32 and 412.301 (collectively, the "Act"), to issue its general obligation capital notes on such terms and in such manner as the City determines to finance the purchase of items of capital equipment (the "Equipment"), subject to certain limitations contained in the Act; (b) the City will purchase and acquire various items of Equipment, which items and the estimated cost thereof, are listed on Exhibit B, attached hereto and made a part hereof; (c) as required by the Act, (i) the expected useful life of each item of Equipment is or will be at least. as long as the term of the Notes (hereinafter defined); and (ii) the principal amount of Notes to be issued in the year 2008 will not exceed 0.25 percent of the market value of taxable property in the City for the year 2008; (d) it is necessary and expedient to the sound financial management of the affairs of the City to issue its General Obligation Capital Notes, Series 2008B (the "Notes"), in the aggregate principal amount of $515,000, pursuant to the Act to provide financing for the Equipment. 1.02. Award to the Pw-chaser and Interest Rates. The proposal of (the "Purchaser") to purchase the Notes described in the Terms of Proposal thereof is found and determined to be a reasonable offer and is accepted, the proposal being to purchase the Notes a1: a .price of $ ,plus accrued interest to date of delivery, if any, for Notes bearing interest as follows: Year Interest Rate 2010 True interest cost: Year Interest Rate 2011 2 $-3 1.03. Purchase Contract. The sum of $_ ,being the amount proposed by the • Purchaser in excess of $, ,shall be credited to the Debt Service Fund hereinafter created or deposited in the Equipment Fund hereinafter created, as determined by the City Finance Manager in consultation with the City's financial advisor. The City Finance Manager is directed to retain the good faith check of the Purchaser, pending completion of the sale of the Notes, and to return the good faith checks of the unsuccessful proposers. The Mayor and City Manager are directed to execute a contract with the Purchaser on behalf of the City. 1.04. Terms and Principal Amounts of the Notes. The City will forthwith issue and sell the Notes pursuant to the Act in the total principal amount of $515,000, originally dated December 18, 2008, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-1, upward, bearing interest as above set forth, and maturing serially on February 1 without option of prior payment in the years and amounts as follows: Year Amount Year Amount 2010 2011 Section 2. Registration and Payment. 2.01. Registered Form. The Notes will be issued only in fully registered form: The interest thereon and, upon surrender of each Note, the principal amount thereof, is payable by check or draft issued by the Registrar described herein. 2.02. Dates; Interest Payment Dates. Each Note will be dated as of the last interest payment date preceding the date of authentication to which interest on the Note has been paid or made available for payment, unless (i) the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case the Note will be dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case the Note will be dated as of the date of original issue. The interest on the Notes is payable on February 1 and August 1 of each year, commencing August 1, 2009, to the registered owners of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not that day is a business day. 2.03. Registration. The City will appoint a note registrar, transfer agent, authenticating agent and paying agent (the "Registrar"). The effect of registration and the rights and duties of the City and the Registrar with respect thereto are as follows: (a) Re ig•s~. The Registrar must keep at its principal corporate trust office a note register in which the Registrar provides for the registration of ownership of Notes and the registration of transfers and exchanges of Notes entitled to be registered, transferred or exchanged. (b) Transfer of Notes: Upon surrender for transfer of a Note duly endorsed by the registered owner thereof or .accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees, one or more new Notes of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment . date and until that interest payment date. 8-~f • (c) Exchange of Notes. When Notes are surrendered by the registered owner for exchange the Registrar will authenticate and deliver one or more new Notes of a like aggregate principal amount and maturity as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. Notes surrendered upon transfer or exchange will be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer.. When a Note is presented to the Registrar for transfer, the Registrar may refuse to transfer the Note until the Registrar is satisfied that the endorsement on the Note or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (fj Persons Deemed Owners. The City and the Registrar may treat the person in whose name a Note is registered in the note register as the absolute owner of the Note, whether the Note is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Note and for all other purposes, and payments so made to a registered owner or upon the owner's order will be valid and effectual to satisfy and discharge the liability upon the Note to the extent of the sum or sum; so paid. (g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner thereof for a transfer or exchange of Notes sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to the'transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Notes. If a Note becomes mutilated or is destroyed, stolen or lost, the Registrar will deliver a new Note of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated Note or in lieu of and in substitution for any Note destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Note destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Note was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar an appropriate note or indemnity in form, substance and amount satisfactory to it and as provided by law, in which both the City and the Registrar must be named as obligees. Notes so surrendered to the Registrar will be cancelled by the legistrar and evidence of such cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Note has already matured or been called for redemption in accordance with its terms it is not necessary to issue a new Note prior to payment. 2.04. Appointment of Initial Re ig stray. The City appoints Wells Fargo Bank, N.A., Minneapolis, Minnesota, as the initial Registrar. The Mayor and the City Manager are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by-law to conduct the resulting business, such corporation is authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which. event the predecessor Registrar must deliver all cash and Notes in its. possession to the successor Registrar and must deliver the note register to the successor Registrar. On or • before each principal or interest due date, without further order of this Council, the City Finance Manager must transmit to the Registrar moneys sufficient for the payment of all principal and interest then due. 4 85 • 2.05. Execution Authentication and Delivery. The Notes will be prepared under the direction of the City Manager and executed on behalf of the City by the signatures of the Mayor and the City Manager, provided that all signatures may be printed, engraved or lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose signature appears on the Notes ceases to be such officer before the delivery of any Note, that signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding such execution, a Note will not be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Note has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Notes need not be signed by the same representative. The executed certificate of authentication on a Note is conclusive evidence that it has been authenticated and delivered under this Resolution. When the Notes have been so prepared, executed and authenticated, the City Manager will deliver the same to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the application of the purchase price. 2.06. Temporary Notes. The City may elect to deliver in lieu of printed definitive Notes one or more typewritten temporary Notes in substantially the form set forth iii Section 3 with such changes as may be necessary to reflect more than one maturity in a single temporary note. Upon the execution and delivery of definitive Notes the temporary Notes will be exchanged therefor and cancelled. Section 3. Form of Note. ~~ 3.01. Execution of the Notes. The Notes will be printed or typewritten in substantially the • following form: (The remainder of this page is intentionally lef: blank.) $~~ No. R- UNITED STATES OF AMERICA $, STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF RICHFIELD GENERAL OBLIGATION CAPITAL NOTE SERIES 2008B Date of Rate Maturity Original. Issue CUSIP February 1, 20_ December 18, 2008 Registered Owner: Cede & Co. ..The City of Richfield, Minnesota, a duly organized and existing municipal corporation in Hennepin County, .l~!linnesota (the "City"), acknowledges itself to be indebted and for value received promises to pay to the Registered Owner specified above or registered assign:., the principal sum of $ on the maturity date specified above without option of prior payment, with interest thereon from the date hereof at the annual rate specified above, payable February 1 and August 1 in each year, commencing August 1, 2009, to the person in whose name this Note is registered at the close of business on the fifteenth day (whether or not a business day) of the immediately preceding month. The interest ~~ hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft by Wells Fargo Bank, N.A., Minneapolis Minnesota, as Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. This Note will not be subject to optional redemption. The City Cotuicil has designated the issue of Notes of which this Note fortes a part as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code") relating to disallowance of interest expense for. financial institutions and within the $10 million limit allowed by the Code for the calendar year of issue. This Note is one of an issue in the aggregate principal amount of $515,000 all of like original issue date and tenor, except as to number, maturity date, and interest rate, al.l issued pursuant to a resolution adopted by the City Council on November 25, 2008 (the "Resolution"), for the purpose of providing money to defray expenses incurred or to be incurred in purchasing .various items of capital equipment, pursuant to and in full conformity with the home rule charter of the City and the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Chapter 475 and Sections 410.32 and 412.301, and the principal hereof and interest hereon are payable primarily from ad valorem taxes, as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for paymc;nt of this Note and the City Council has obligated itself to levy additional ad valorem taxes on all taxable property in the City in the event of any deficiency, which taxes may be levied without limitation as to rate or amount. The Notes of this series are issued only as fully registered Notes in denominations of $5,000 or any integral multiple • thereof of single maturities. 6 a-~ • As provided in the Resolution and subject to certain limitations set forth therein, this Note is transferable upon the books of the City at the principal office of the Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing, upon surrender hereof together with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Notes of other authorized denominations. Upon such transfer or exchange the City will cause a new Note or Notes to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Registrar may deem and treat the person ~in whose name this Note is registered as the absolute owner hereof, whether this Note is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Registrar will be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the home rule charter of the City and the Constitution ar_d laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and iii the issuance of this Note in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened -and have been performed as so required., and that the issuance of this Note does not cause the indebtedness of the City to exceed any constitutional or charter limitation of indebtedness. y. This Note is not valid or obligatory for any purpose or entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon has been executed by the Registrar by manual • signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Richfield, Minnesota, by its City Council, has caused this Note to be executed on its. behalf by the facsimile or manual signatures of the Mayor and City Manager and has caused this Note to be dated as of the date set forth below. Dated: December 18, 2008 CITY OF RICHFIELD, NIINNESOTA (Facsimile) Facsimile) Mayor City Manager • 7 ~' CERTIFICATE OF AUTHENTICATION • This is one of the Notes delivered pursuant to the Resolution mentioned within. WELLS FARGO BANK, N.A. By Authorized Representative The following abbreviations, when used in the inscription on the face of this Note, will be construed as though they were written out in full according to applicable laws or regulations: TEN COM -- as tenants in common UNIF GIFT MIN ACT Custodian (Gust) (Minor) TEN ENT -- as tenants by entireties under Uniform Gifts or Transfers to Minors Act, State of JT TEN -- as joint tenants with right of survivorship and not as tenants in common • Additional abbreviations may also be used though not in the above list. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Note and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Note on the books kept for registration of'the within Note, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name a.s it appears upon the face of the within Note in every particular, without alteration or any change whatever. Signature Guaranteed: NOTICE: Signature(s) must be guaranb~ed by a financial institution that is a member of the Securities • Transfer Agent Medallion Program ("STAMP"), the Stock Exchange Medallion Program ("SEMP"), the 8 ~~ New York Stock Exchange, Inc. Medallion Signatures Program ("MSP") or other such "signature guarantee program" as may be determined. by the Registrar in addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended. The Registrar will not effect transfer of this Note unless the information concerning the assignee requested below is provided. Name and Address: (Include information for all joint owners if this Note is .held by joint account.) Please insert social security or other identifying number of assignee PROVISIONS AS TO REGISTRATION The ownership of the principal of and interest on the within Note has been registered on the ~- books of the Registrar in the name of the person las± noted below. • Signature of Date of Registration Registered Owner jOfficer of Re ig'strar Cede & Co. ' Federal ID #13-2555119 [End of Form of Note] 3.02. Approving Le ag~l-Opinion. The City Manager is authorized and directed to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be complete except as to dating thereof and to cause the opinion to be printed on or accompany each Note. Section 4. Payment: Security: Pledges and Covenants. 4.01. Debt Service Fund. The Notes will be payable from the General Obligation Capital Notes, Series 2008B Debt Service Fund (the "Debt Service Fund") hereby created, and the proceeds of the ad valorem taxes hereinafter levied are pledged to the Debt Service Fund. If a payment of principal or interest on the Notes becomes due when there is net sufficient money in the Debt Service Fund to pay the same, the City Finance Manager will pay such principal or interest from the general fund of the City, and the general fund may be reimbursed for those advances out of the proceeds of the taxes levied by this resolution when collected. There is appropriated to the Debt Service Fund (i) all capitalized interest financed from Note proceeds, if any, (ii) any amount over the minimum purchase price of the Notes paid 9 ~-i v by the Purchaser, to the extent designated for deposit in the Debt Service Fund in accordance with Section 1.03, and (iii) the accrued interest paid by the Purchaser upon closing and delivery of the Notes, if any. 4.02. Equipment Fund. The proceeds of the Notes, less the appropriations made in Section 4.01, together with any other funds appropriated for the purchase of Equipment will be deposited in a separate fund (the "Equipment Fund") to be used solely to defray expenses of the Equipment. When the Equipment is purchased and the cost thereof paid, the Equipment Fund is to be closed and any monies rLmaining therein shall be transferred to the Debt Service Fund. 4.03. Pledge of Taxes. For the purpose of paying the principal of and interest on the Notes, there is levied a direct annual irrepealable ad valorem tax upon all of the taxable property in the City, to be spread upon the tax rolls and collected with and as part of other general taxes of the City. The tax will be credited to the Debt Service Fund above provided and is in the years and amounts attached hereto as Exhibit C. 4.04. Certification to Taxpayer Services Division Manager as to Debt Service Fund Amount. It is determined that the estimated collection of the foregoing taxes will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Notes. The tax l~.vy herein provided is irrepealable until all of the Notes are paid, provided that at the time the City makes its annual tax levies, the City Finance Manager may certify to the Taxpayer Services Division D~ianager of Hennepin County the amount available in the Det>t Service Fund to pay principal and interest clue during the ensuing year, and the Taxpayer Services Division Manager will thereupon reduce the levy collectible during that year by the amount so certified. 4.05. Tax~aye;r Services Division Manager's Certificate as to Registration. The City Manager is authorized and directed to file a certified copy of this resolution with the Taxpayer Services Division • D~Ianager and to obtain the certificate required by Minnesota Statutes, Section 475.63: Section 5. Authentication of Transcript. 5.01. City Proceedings and Records. The officers of the City are authorized and directed to prepare and furnish to the Purchaser and to the attorneys approving the Notes, certified copies of proceedings and records of the City relating to the Notes and to the financial condition and affairs of the City, and such other certificates, affidavits and transcripts as may be required to show the facts within their knowledge or as shown by the books and records in their custody and under their control, relating to ti'1e validity and marketability of the Notes, and such instruments, including any heretofore furnished, will be deemed representations of the City as to the facts stated therein. 5.02. Certification as to Official Statement. The Mayor, City Manager, and City Finance D~Ianager are authorized and directed to certify that they have; examined the Official Statement prepared and circulated in connection with the issuance and sale of the Notes and that to the best of their knowledge and belief the Official Statement is a complete and accurate representation of the facts and representations made therein as of the date of the Official Statement. 5.03. Payment of Costs of Issuance. The City authorizes the Purchaser to forward the amount of Note proceeds allocable to the payment of issuance expenses (other than amounts payable to I<:ennedy & Graven, Chartered, as Bond Counsel) to U.S. Trust Company, Minneapolis, Minnesota on the closing date for further distribution as directed by the City's financial advisor, Ehlers & Associates, Inc. • 10 8'!I Section 6. Tax Covenant. 6.01. Tax-Exempt Notes. The City covenants and agrees with the holders from time to time of the Notes that it will not take or permit to be taken by any of its. officers, employees or agents any action which would. cause the interest on the Notes to become subject to taxation under the Internal Revenue Code of 1986, as amended (the "Code"), and the Treasury Regulations promulgated thereunder, in effect at the time of such actions, and that it will take or cause its officers, employees or agents to take all affirmative action within its power that may be necessary to ensure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made applicable to the Notes. 6.02. Not Private Activi Bonds. The City further covenants not to use the proceeds of the Notes or to cause or permit them or any of them to be used, in such a manner as to cause the Notes to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 6.03. 4ualified Tax-Exempt Obli ag bons. In order to qualify the Notes as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and representations: (a) the Notes are not "private activity bonds" as defined in Section 141 of the Code; (b) the City designates the Notes as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code; (c) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds that are not qualified 501(c)(3) bonds) which will be issued by the City (and all subordinate entities of the City) during calendar year 2008 will not exceed $10,000,000; and (d) not more than $.10,000,000 of obligations issued by the City during .calendar year 2008 have been designated for purposes of Section 265(b)(3) of the Code. 6.04. Procedural Requirements. The City will use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designations made by this section. Section 7. Book-Entr~System• Limited Obligation of City. 7.01. DTC. The Notes will be initially issued in the form of a separate single typewritten or printed fully registered Note for each of the maturities set forth in Section 1.04 hereof. Upon initial issuance, the ownership of each Note will be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its successors and assigns ("DTC"). Except as provided in this section, all of the outstanding Notes will be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC. .7.02. Participants. With respect to Notes registered in the registration books kept by the Registrar ia. the name of Cede & Co., as nominee of DTC, the City, the Registrar and the Paying Agent will have no responsibility or obligation to any broker dealers, banks and other financial institutions from time to time for which DTC holds Notes as securities depository (the "Participants") or to any other person on behalf of which a Participant holds an interest in the Notes, including but not limited to any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any • Participant with respect to any ownership interest in the Notes, (ii) the delivery to any Participant or any other person {other than a registered owner of Notes, as shown by the registration books kept by the 11 8 -i a-- Registrar) of any notice with respect to the Notes, including any notice of redemption, or (iii) the payment • to any Participant or any other person, other than a registered owner of Notes, of any amount with respect to principal of, premium, if any, or interest on the Notes.. The City, the Registrar and the Paying Agent may treat and consider the person in whose name each Note is registered in the registration books kept by the Registrar as the holder and absolute owner of such Note for the purpose of payment of principal, premium and interest with respect to -such Note, for the purpose of registering transfers with respect to such Notes, and for all other purposes. The Paying Agent will pay all principal of, premium, if any, and interest on the l~Totes only to or on the order of the respective registered owners, as shown in the registration books kept by the Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the City's obligations with respect to payment of principal of, premium, if any, or interest on the Notes to the extent of the sum or sums so paid. No person other than a registered owner of Notes, as shown in the registration books kept by the Registrar, will receive a certificated Note evidencing the obligation of this resolution. Upon delivery by DTC, to the City Manager of a written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words "Cede & Co.," will refer to such new nominee of DTC; and upon receipt of such a notice, the City Manager will promptly deliver a copy of the same to the Registrar and Paying Agent. 7.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket Issuer Letter of Representations (the "Representation Letter") which will gove~~n payment of principal of, premium, if any, and interest on the Notes and notices with respect to the Notes. Any Paying Agent or Registrar subsequently appointed by the City with respect to the Notes will agree to take all action necessary for all representations of the City in the Representation Letter with respect to the Registrar and Paying Agent, respectively, to be complied with at all times. 7.04. Transfers Outside Booic-Entr~ystem. In the event the City, by resolution of the City Council, determines that it is in the best interests of the persons having beneficial interests in the Notes . that they be able to obtain Note certificates, the City will notify DTC, whereupon DTC will notify the Participants, of the availability through DTC of Note certificates. In such event the City will issue, transfer and exchange Note certificates as requested by DTC and any other registered owners in accordance with the provisions of this Resolution. DTC may .determine tc discontinue providing its services with respect to the Notes at any time by giving notice to the. City and discharging its responsibilities writh respect thereto under applicable law. In such event, if no successor securities depository is appointed, the City will issue and the Registrar will authenticate Note certificates in accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method of payment thereof. 7.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the contrary, so long as a Note is registered in the name of Cede & Co., as nominee of DTC, payments. with respect to principal of, premium, if any, and interest on the Note and all notices with respect to the Note will be made and given, respectively in the manner provided in DTC's Operational Arrangements, as set forth in the Representation Letter. Section 8. Continuing Disclosure. 8.01. City Compliance with Provisions of Continuing Disclosure Certificate. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be considered an event of default with respect to the Notes; however, any Noteholder may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its . obligations under this section. 12 g-~~ • 8.02. Execution of Continuing Disclosure Certificate. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate executed by the Mayor and City Manager and dated the date of issuance and delivery of the Notes, as originally executed and as it may be amended from time to time in accordance with the terms thereof. Section 9. Defeasance. When all Notes and all interest thereon have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Notes will cease, except that the pledge of the full faith and credit of the City for the prompt and full payment of the principal of and interest on the Notes will remain in full force and effect. The City may discharge all Notes which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full. If any Note should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. (Tlie remainder of this page is intentionally left blank.) . w • • 13 8--~ Passed and adopted this 25th day of November, 2008. CITY OF RICHFIELD, MINNESOTA Mayor City Manager Attest: City Clerk • • 14 g-is The motion for the adoption of the foregoing resolution was duly seconded by Member ,and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. l...Il 15 g-~(a STATE OF MINNESOTA ) • COUNTY OF HENNEPIN ) SS. CITY OF RICHFIELD ) I, the undersigned, being the duly qualified and acting City Clerk of the City of Richfield, Minnesota (the "City"), do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City Council of the City held on November 25, 2008, with the original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar as they relate to the .issuance and .sale of the City's General Obligation Capital Notes, Series 2008B, in the aggregate principal amount of $515,000. WITNESS My hand officially as such City Clerk and the corporate seal of the City this day of , 2008. City Clerk Richfield, Minnesota (SEAL) • / ~~ STATE OF MINNESOTA COUNTY OF HENNEPIN CERTIFICATE OF TAXPAYER SERVICES DIVISION MANAGER AS TO TAX LEVY AND REGISTRATION ~, the undersigned Taxpayer Services Division Manager of Hennepin County, Minnesota, hereby certify that a certified copy of a resolution adopted by the governing body of the City of Richfield Minnesota (the "City), on November 25, 2008, levying taxes for the payment of the City's General Obligation Capital Notes, Series 2008B; in the aggregate principal amount of $515,000, dated December 18, 2008, has been filed in my office and said Notes have been entered on the register of obligations in my office and that such tax has been levied as required by law. WITNESS My hand and official seal this day of (SEAL) 2008. Taxpayer Services Division Manager Hennepin County, Minnesota Deputy • BIB • EXHIBIT A PROPOSALS A-1 ~'~~ EXHIBIT B LIST OF EQUIPMENT AND COST • • Equipment One One-Ton Truck Two Mowers One Skid Steer Loader One One-Ton Truck One Brush Chipper One Ice Re~.urfacer Four Mid-Size Sedans One Sports ~Jtility Vehicle Five Full-Size Police Squad Cars One Records Archival System Scanner Two Network Servers Fiber Optic Network Construction Total: Cost $ 45,000 26,000 34,000 47,000 70,000 115,000 50,000 28,000 135,000 6,050 11,980 104,000 $7200 B-1 $~~ EXHIBIT C TAX LEVY SCHEDULE YEAR * -TAX LEVY 2009 2010 * Year tax levy collected. RC145-599 (JAE) 341966v1 • C-1 AGENDA SECTION: AGENDA ITEM # REPORT # OTHER BUSINESS 9 283 STAFF REPORT CITY COUNCIL MEETING NOVEMBER 10, 2008 • REPORT PREPARED BY: REVIEWED BY CITY MANAGER: L. DEVICH, CITY MANAGER ITEM FOR COUNCIL CONSIDERATION: Consideration of City .Council approval of an agreement for services with Orfield Laboratories, Inc. I. RECOMMENDED ACTION: By Motion: Authorize the City Manager to execute the attached agreement with Orfield Laboratories, Inc. for Certified Building Performance Standards & Consulting for the new Police/Fire/City Hall facility in an amount not to exceed $147,500 (tabled from November 10, 2008.) III. BACKGROUND ~ The City Council voted at the October 28, 2008 meeting to engage the services of Orfield Laboratories, Inc. for Certified Building Performance Standards and related consulting for the new Police/Fire/City Hall facility. Staff was directed to prepare an agreement for those services with Orfield Labs and bring it to the City Council for approval in November. At the November 10, 2008 City Council meeting, the City Council .directed the City Manager to negotiate a final agreement with Orfield Labs for City Council consideration. The City Manager now has a final draft of a negotiated service agreement with Orfield Labs for Performance Standards and related services for the new city hall project. In .essence, the preparation of the Building Performance Standards is a flat rate of $27,500. Those standards then become the property of the City and could be used for other City projects with minor modifications. Orfield Labs' flat fee for verification testing to determine that the Performance Standards have been met is $20,000, which is a reduction from the original flat rate of $25,000 included in the Orfield proposal. 11250rfield The variable cost associated with this agreement is the consulting services provided by Orfield Labs in assisting the City and. architect to attain the targeted Performance Standards for the building. For these services, Orfield Labs would charge an hourly rate based upon which staff member from Orfield Labs is providing the service. In no event, would these costs exceed $100,000. -Hours ordered and incurred would be billed to the City in monthly increments so that it would be easier to manage this portion of the agreement to ensure the services stayed below the authorized limit. With respect to the City Council Chambers, this agreement with Orfield Labs provides that the Performance Standards will address comfort issues such as heating, lighting and normal acoustical issues with respect to building comfort performance. It does not cover the audio-visual design, acoustics or lighting that would be used to model a council chamber for optimum use as a meeting and presentation space. The latter issues would be provided, in some measure, through the architectural agreement. III. BASIS OF RECOMMENDATION A. POLICY • If the City is to contract with Orfield Labs for this service, City Council approval and authority for such an agreement is necessary. B. CRITICAL ISSUES • The timing of this agreement is important in that Performance Standards need to be in place as a first step in the new city hall project. C. FINANCIAL • The cost of the Orfield Labs agreement would be paid for out of the design contingency portion of the budget for the new city hall (approximately $1.39 million) decreasing that contingency amount accordingly . • The "not to exceed" amount of this agreement represents a reduction of $5,000 or 10% of the flat rate fees contained in the original proposal. D. LEGAL • The City Attorney has prepared the final agreement. • This agreement provides considerable protections for the City and eliminates many of the unfavorable language provisions contained in the original proposal. E. ENVIRONMENTAL CONSIDERATIONS • Building Performance Standards are sensitive to green issues associated with building construction. ~ 1 V . ALTERNATIVE KECOMMENDATION(S) ~ • The City Council could decide not to approve this agreement or to approve it for a lesser amount. V. ATTACHMENTS ~, Contract agreement with Orfield Laboratories, Inc. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • CITY E[ALL BUILDING PERFORMANCE STANDARDS CONSULTING AGREEMENT THIS AGREEMENT is made and entered into this day of November, 2008, by and between the -City of Richfield, a Minnesota municipal corporation ("City") and Orfield Laboratories, Inc., a Minnesota corporation ("Orfield"). RECITALS A. , The parties acknowledge that without. the requirement .of specific building performance: standards, building projects.: may have failures related to Daylighting, Lighting, Acoustics, Thermal .Comfort- and Indoor Air Quality (collectively _ "Standards") .and that the failure ofbuilding design and construction . to meet Standards is .the. source of occupant complaints about buildings. B: Orfield has extensive experience in providing custom programs to develop and define. Standards and has developed a program to provide Standards for the City's punned design and construction of a City Hall. {"City Hall"}. Orfield will further provide updates to these Standards every year at a limited cost to the City. s~hat~.pp13'ing-a-b-ua~~.ir~~perfs~ar~ce_p -ogr-a-rn~gard Standards will have little impact on the cost of the City Ha1I; but a significant impact on the ° performance of and user satisfaction with the City Hall, anal that when combined with apre- and post-occupancy study program, the City Hall can achieve performance targets regarding Standards and measure the benefit of those targets to the users of City Hall. D. The parties also seek to establish a set of standardized measurements that will confirm that the Standards have been incorporated into the design and construction of City Hall. AGREEMENT NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which the parties acknowledge, the parties agree as follows: 1. The Recitals are made part of this.Agreement. 2. Orfield shall develop Standards for City Hall and the components comprising.. Standards, Acoustics, Daylighting, Lighting, Thermal Comfort, and Indoor Air Quality, will be further defined in Orfield report, required under subparagraph 4A. Orfield shall provide specific design approaches that are useful in achieving the Standards and will include specific test- and measurement criteria that Orfield will use to confirm that the Standards are met and maintained. Orfield will also include suggested remedies to the City for failure of the .designer.and/or • contractor to achieve the Standards. ~. • 3. Orfield .will provide consulting support to the architect to assist it in designing City Hall to incorporate and implement the Standards. This includes design consultation to the architect in matters of Acoustics, Daylighting, and Lighting. Orfield.will also assist the architect in the incorporation of Thermal Comfort and Indoor Air Quality in the City Hall design. 4. The services described in paragraphs 2 and 3 above shall be delivered in accordance with the following: A. For a flat fee of $27,500 payable upon satisfactory completion, Orfield shall prepare a report of approximately 50 to 60 pages, within three weeks of the date of this Agreement. The report will detail the .Standards, include examples of their correct application (where possible), testing of Standards, and recommended City remedies or penalties to the architect and/or contractor for their failure to meet Standards ("Task 1 "). B. For consulting services at 4rfield's hourly rate as set forth in Exhibit _ to this Agreement,. approved by the City Manager, billed monthly and not to exceed $100,000, Orfield shall provide consulting assistance to the architect and/or contractor to comply with the Standards. These .consulting services may include, but are ,not an s ~'t -~hai~keep-the-Oity-~i~nage concurrently apprised of all consulting Orfield carries out ("Task 2"). C. For the flat fee of $20;000 payable upon satisfactory completion, performance commissioning to confirm that the completed City Hall meets the Standards ("Task 3"). Task 3 shall include a written report of the commissioning. 5. The City shall have the right to cancel this Agreement and terminate the services of Orfield for convenience upon seven (7) days written notice to Orfield. Upon receipt of such notice, Orfield shall submit to the City the total of its hours worked on Task(s) through the date of the notice and the City shall compensate Orfie1_d for its work based on reasonable invoices and expenses submitted Toward the Task(s) to the time ofnotice of termination: 6... The City shall have .the right to terminate Orfield for cause upon. seuexa~_(7) days written notice. For cause shall include any material failure of Orfield to timely and satisfactorily carry, out the services to be performed under this Agreement. In the event of a termination for cause; the parties agree to promptly retain amutually-acceptable mediator if they are unable to resolve the appropriate compensation for services rendered to .the date of termination. The parties ,retain all. rights in law or in equity'if they are unable to resolve any dispute arising. out of this Agreement. _ 7: All expenses reasonable and necessary in the timely performance of -Orfield's duties ender this Agreement will be billed to the City and paid 'at cost: Orfield may charge no • more than five (S) cents per copy for standard 8 1/2" by 11" copies and five (5) centers per copy for reproductions of special size. Orfield shall .notify the City for pre-approval of anticipated expenses not ordinarily incurred in the .course of the duties described in the Agreement, ~<~w • including but not limited to, use of ,special equipment, travel, overnight accommodations or ,/ ~ meals. No Orfield travel within the Twin .Cities' metropolitan area shall be reimbursed as an expense. . 8. The City shall pay Orfield on invoices received in accordance with the Minnesota Municipal Prompt Payment Act. - 9. Orfield does not provide architectural or professional engineering services and no such services are contemplated by this Agreement. The specific areas comprising the Standards; Acoustics, Daylighting, Lighting, Thermal Comfort and Indoor Air Quality, are not recognized under any professional registration practice. 10. This Agreement does not include the application of Standards to the City Council Chambers at the City Hall. If the City desires. Orfield's services with• respect to City Council Chambers, the City •shall notify Orfield which will provide a written proposal for such services. 1 l . Services related to environmental noise are not part of this Agreement. Upon City request, Orfield will provide a written proposal for the measurement and assessment of City Hall to determine if an environmental response to noise and/or vibration is necessary for the City Hall. . 12. Orfield agrees that in the performance of its ditties under the Agreement, Orfield shall work through the City Manager as the City's primary representative and shall also work j with the City's architect and engineer, Wold Architects and Engineers, a Minnesota corporation ~.~ ("Wold"). , Orfield is .providing no direction, control or supervision of a) Wold or engineering professionals that may be retained,. by Wold or the City, or b) the contractor{s) or its subcontractors constructing the City Hall. 13. Orfield shall work :cooperatively with Wold in the process .of incorporating and implementing the Standards into the design. In the event Orfield and Wold cannot .agree on any aspect of the incorporation or implementation of . a Standard, for any reason, Orfield shall promptly notify the City Manager-and describedisagreement in writing. The City Manager shall attempt to promptly resolve the disagreement. If the. City Manager's decision does not result in a resolution of the- disagreement in a manner satisfactory to Orfield, Orfield shall promptly give notice to the -City Manager That the matter should be finally decided. by the City Council ~ at "the earliest opportunity:. The City Council shall make the final determination regarding the presented issue. .Orfield shall not stop performance of any of its duties. under the Agreement during the period of disagreement or after a City Council decision with which Orfield does not agree. 14. The process carried out. by Orfield contemplated in this Agreement employs • analysis methods that Orfield has developed previously and uses on an ongoing basis for evaluation and task performance analysis. Orfield will use these methods to prepare a specific . ~ analysis plan for the City HaII. The City acknowledges that it has no right to use any methods that are. proprietary to Orfield other than for the City Hall Project and that such methods, if 1,: property rights to them exist, remain the sole property of Orfield.. Orfield hereby-grants to the 342847v3 7MS RC145-563 City the right to use such analysis methods for purposes of development and implementation of _ ' Standards for the City Hall. In the event the City, terminates services of Orfield, the City shall %' have the right to use these analysis methods for the sole purpose of completing the City Hall - Proj ect. I5. Orfield's design work shall require a set of documents drawn to conventional ` scale (1/4, 118, 1/16) that are to be provided by the City at no cost to Orfield. The provided documents .shall be in the same scale and accompanying specification and Orfield shall be entitled to rely on their accuracy, unless otherwise provided in writing by the City. The City shall. promptly provide to Orfield, as they are available, the following documents: A. Architectural floor plan; B. Interior furnishings/design plan; C. Reflected ceiling plan; D. HVAC plan; E. Interior wall elevations; F. Architectural specification set; Orfield shall make further requests for information to the City in writing as may be necessary and City shall respond within a reasonable time. 16'. Orfield shall indemnify, defend and 'hold the City harmless from any and all actions arising out of Orfield's negligence or alleged negligence in the performance of the duties set forth in this Agreement. Upon receipt of any third party claim against the City due to Orfield's alleged negligence, the City shall timely tender the defense to Orfield which shall defend the City to the fullest extent permitted by law and shall be responsible for all attorneys' fees and costs of the action. If Orfield declines to defend the City, Orfield shall be responsible for City's reasonable costs and attorneys' `_fees incurred in'defense of Orfield actions that are adjudged to be negligent and shall allocate such fees and costs proportionally. Orfield's liability to .the City shall.not. exceed__the claim limits of Orfield's _general.liabilty policy, or other - app-lcable poli.cy,_ .which Oxfield agrees. to_keep_iifczzce du~ng.the:claims period. ` 17.: ` Orfield shall provide to the City evidence"of insurance; and coverage .limits, as .-. follows arid, sfiah list the City as an additional. insured on Orfield's general liability insurance policy: Workers' comp; - General liability; Umbrella liability; 'Automobile liability; Professional liability. `. ~- 4 • f.: ~: ~.. _ . Orfield shall maintain such coverages as necessary during the claims period and shall provide City with athirty-day (30) written notice prior to any cancellation of insurance during the claims period. 18. This Agreement is subject to all applicable laws and ordinances and shall be governed by Minnesota law. ORFIELD LABORATORIES, INC. By Steven J. Orfield Its President CITY OF RICHFIELD By Debbie Goettel Its Mayor CITY OF RICHFEILD Steve Devich ~- - Its City Manager ~ ~ • AGENDA SECTION: AGENDA ITEM # REPORT # ~~ STAFF REPORT OTHER BUSINESS 10 284 CITY COUNCIL MEETING NOVEMBER 25, 2008 REPORT PREPARED BY: STEjr~N L. DEVICH, CITY MANAGER NAME, 77~z,E • MANAGER:BY CITY ~ DiG ~ / ~1~ T M F I I E TI N: Consideration of City Council approval of an agreement for architectural services with WOId Architects and En ineers. I. RECOMMENDED ACTION: By Motion: Authorize the City Manager to execute the attached agreement with Wold Architects and Engineers for architectural services for the new Police/Fire/City Hall facility. On August 12, 2008, the City Council directed the City Manager to negotiate a contract for the services of Wold Architects and Engineers for architectural design services pertaining to the new Police/Fire/City Hall facility. Staff has now concluded those negotiations and has prepared an agreement for those services for consideration and approval by the City Council. This architectural services agreement provides for the full design services of the new city hall facility including provision for the audio-visual design, acoustics and lighting that would be used to model a council chamber for use as a meeting and presentation space. These types of design and engineering services would be provided through Wold, although they would be using experts outside of their firm for these particular services. • The Wold agreement does not contemplate providing these services in as comprehensive form as was proposed by Orfield Labs (Orfield Labs would provide these services for an additional $100,000 over their contract amount.) The City Council can consider this matter at a future time as the City gets further into this design process. In essence, if the City Council decided that a more comprehensive design of the council chamber is desired it could be negotiated as an "add-on" with Orfield. 1125WOLD The contract drafted by the City Attorney for these architectural services was prepared to provide many protections for the City and requires liability insurance . coverage by Wold which is several millions of dollars greater than a standard AIA (American Institute of Architects) contract form. There are also several limitations on excess chargges that might occur during the term of a normal construction project of this nature. Wold's payment for services through this contract is 6% of the estimated pro1:ect construction costs. However, credits provided to the City by Wold through negotiations include a savinggs of roughly $20,000 in fees paid to Wold and result m a contract cost that equals 5.5% of the estimated construction cost. In summary, staff believes that this is a good contract for the City and provides a fair payment for architectural services for the new city hall project. III. BASIS OF RECOMMENDATION A. POLICY • If the City is to contract with Wold for this service, City Council approval and authority for such an agreement are necessary. B. CRITICAL ISSUES • The timing of this agreement is important in that Architectural services need to be in place as a first step in the new city hall project. • This agreement contemplates and integrates the performance standards to be provided by Orfield Labs for this project. C. FINANCIAL • The cost of the architectural services is well within the funds allocated for these services in the budget for the new City Hall facility. • Funds will be paid from either the proceeds of the city hall bond issue or from cash currently reserved for this project. • Although the cost for this contract is listed as 6% with "credits", the $973,900 base cost is 5.5% of the estimated construction cost of the project. • This agreement also limits the total additional architectural fees that might be charged based on certain contingencies or project modifications. D. LEGAL • The City Attorney has prepared the final agreement. • This is a custom agreement that provides far greater protections for the City than a standard AIA contract form. E. ENVIRONMENTAL CONSIDERATIONS • Architectural services are sensitive to green issues associated with building construction. TERNATIVE i ne amity ~ouncu cou for a lesser amount. V. ATTACIiMENTS • Contract agreement v VI. PRINCIPAL PARTIES EXPEC'] e not to approve this agreement or to approve it AT MEETING and Engineers. • Representatives from CITY BALL BUILDING PERFORMANCE STANDARDS CONSULTING AGREEMENT THIS AGREEMENT is made and entered into this _ day of November, 2008, by and between the City of Richfield, a Minnesota municipal corporation ("City") and Orfield Laboratories, Inc., a Minnesota corporation ("Orfield"). RECITALS A. The parties acknowledge that without the requirement of specific building performance standards, building projects may have failures related to Daylighting, Lighting, Acoustics, Thermal Comfort and Indoor Air Quality (collectively "Standards") and that the failure of building design and construction to meet Standards is the source of occupant complaints about buildings. B. Orfield has extensive experience in providing custom programs to develop and define Standards and has developed a program to provide Standards for the City's' planned design and construction of a City Hall ("City Hall"). Orfield will further provide updates to these Standards every year at a limited cost to the City. C. Orfield further represents that applying a building performance program regarding Standards will have little impact on the cost of the City Hall, but a significant impact on the performance of and user satisfaction with the City Hall, and that when combined with apre- and post-occupancy study program, the City Hall can achieve performance targets regarding Standards and measure the benefit of those targets to the users of City Hall. D. The parties also seek to establish a set of standardized measurements that will confirm that the Standards have been incorporated into the design and construction of City Hall. AGREEMENT NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which the parties acknowledge, the parties agree as follows: 1. The Recitals are made part of this Agreement. 2. Orfield shall develop Standards for City Hall and the components comprising Standards, Acoustics, Daylighting, Lighting, Thermal Comfort, and Indoor Air Quality, will be further defined in Orfield report, required under subparagraph 4A. Orfield shall provide specific design approaches that are useful in achieving the Standards and will include specific test and measurement criteria that Orfield will use to confirm that the Standards are met and maintained. Orfield will also include suggested remedies to the City for failure of the designer and/or contractor to achieve the Standards. • 3. Orfield will provide consulting support to the architect to assist it in designing City Hall to .incorporate and implement the Standards. This includes design consultation to the - architect in matters of Acoustics, Daylighting, and Lighting. Orfield will also assist the architect in the incorporation of Thermal Comfort and Indoor Air Quality in the City Hall design. 4. The services described in paragraphs 2 and 3 above shall. be delivered in accordance with the following: A. For a flat fee of $27,500 payable upon satisfactory completion, Orfield shall prepare a report of approximately 50 to 60 pages, within three weeks of the date of this Agreement. The report will detail the Standards, include examples of their correct application (where possible), testing of Standards, and recommended City remedies or penalties to the architect and/or contractor .for their failure to meet Standards ("Task 1 "). B. For consulting services at Orfield's hourly rate as set forth in Exhibit _ to this Agreement, approved by the City Manager, billed monthly and not to exceed $100,000, Orfield shall provide consulting assistance to the architect and/or contractor to comply with the Standards. These consulting services may include, but are not necessarily limited to, preparation of memoranda, discussions, teleconferences, drawings and sketches to aid in the required compliance. Orfield shall keep the City Manager concurrently apprised of all consulting Orfield carries out ("Task 2"). C. For the flat fee of $20,000 payable upon satisfactory completion, performance commissioning to confirm that the completed City Hall meets the Standards ("Task 3"). Task 3 shall include a written report of the commissioning. 5. The City shall have the right to cancel this Agreement and terminate the services of Orfield for convenience upon seven (7) days written notice to Orfield. Upon receipt of such notice, Orfield shall submit to the City the total of its hours worked on Task(s) through the date of the notice and the City shall compensate Orfield for its work based on reasonable invoices and expenses submitted toward the Task(s) to the time of notice of termination. 6. The City shall have the right to terminate Orfield for cause upon seven (7) days written notice. For cause shall include any material failure of Orfield to timely and satisfactorily carry out the services to be performed under this Agreement. In the event of a termination for cause, the parties agree to promptly retain amutually-acceptable mediator if they are unable to resolve the appropriate compensation for services rendered to the date of termination. The parties retain all rights in law or in equity if they are unable to resolve any dispute arising out of this Agreement. 7. All expenses reasonable and necessary in the timely performance of Orfield's duties under this Agreement will be billed to the City and paid at cost. Orfield may charge no more than five (5) cents per copy .for standard 8 %2" by 11" copies and five (5) centers per copy for reproductions of special size. Orfield shall notify the City for pre-approval of anticipated expenses not ordinarily incurred in the .course of the duties described in the Agreement, 342897v3 JMS RC145-563 2 including but not limited to, use of special equipment, travel, overnight accommodations or meals. No Orfield travel within the Twin Cities' metropolitan area shall be reimbursed as an .expense. 8. The City shall pay Orfield on invoices received in accordance with the Minnesota Municipal Prompt Payment Act. 9. Orfield does not provide architectural or professional engineering services and no such services are contemplated by this Agreement.. The specific areas comprising the Standards; Acoustics, Daylighting, Lighting, Thermal Comfort and Indoor Air. Quality, are not recognized under any professional registration practice. 10. This Agreement does not include the application of Standards to the City Council Chambers at the City Hall. If the City desires Orfield's services with respect to City Council Chambers, the City shall notify Orfield which will provide a written proposal for such services. 11. Services related to environmental noise are not part of this Agreement. Upon City request, Orfield will provide a written proposal for the measurement and assessment of City Hall to determine if an environmental response to .noise and/or vibration is necessary for the City Hall. 12. Orfield agrees that in the performance of its duties under the Agreement, Orfield shall work through the City Manager as the City's primary representative and shall also work with the City's architect and engineer, Wold Architects and Engineers, a Minnesota corporation ("Wold"). Orfield is providing no direction, control or supervision of a) Wold or engineering professionals that may be retained by Wold or the City, or b) the contractor(s) or its subcontractors constructing the City Hall. 13. Orfield shall work cooperatively with Wold in the process of incorporating and implementing the Standards into the design. In the event Orfield and Wold cannot agree on any aspect of the incorporation or implementation of a Standard, for any reason, Orfield shall promptly notify the City Manager and describe disagreement in writing. The City Manager shall attempt to promptly resolve the disagreement. If the City Manager's decision does not result in a resolution of the disagreement in a manner satisfactory to Orfield, Orfield shall promptly give notice to the City Manager that the matter should be finally decided by the City Council at the earliest opportunity. The City Council shall make the final determination regarding the presented issue. Orfield shall not stop performance of any of its duties under the Agreement during the period of disagreement or after a City Council decision with which Orfield does not agree. 14. The process carried out by Orfield contemplated in this Agreement employs analysis methods that Orfield has developed previously and uses on an ongoing basis for evaluation and task performance analysis. Orfield will use these methods to prepare a specific analysis plan for the City Hall. The City acknowledges that it has no right to use any methods that are proprietary to Orfield other than for the City Hall Project and. that such methods, if property rights to them exist, remain the sole. property of Orfield. Orfield hereby. grants to the 342897v3 JMS RC145-563 3 City the right to use such analysis methods for purposes of development and. implementation of Standards for the City Hall.. In the event the City, terminates services of Orfield, the City shall have the right to use these analysis methods for the sole purpose of completing the City Hall Project. 15. Orfield's design work shall require a set of documents drawn to conventional scale (1/4, 1/8, 1/16) that are to be provided by the City at no cost to Orfield. The provided documents shall be in the same scale and accompanying specification and Orfield shall be entitled to rely on their accuracy, unless otherwise provided in writing by the City. The City shall promptly provide to Orfield, as they are available, the following documents: A. Architectural floor plan; B. Interior furnishings/design plan; C. Reflected ceiling plan; D. HVAC plan; E. Interior wall elevations; F. Architectural specification set; G. Lighting specifications. Orfield shall make further requests- for information to the City in writing as may be necessary and City shall respond within a reasonable time. 16. Orfield shall indemnify, defend and hold the City harmless from any and all actions arising out of Orfield's negligence or alleged negligence in the performance of the duties set forth in this Agreement. Upon receipt of any third party claim against the City due to Orfield's alleged negligence, the City shall timely tender the defense to Orfield which shall defend the City to the fullest extent permitted by law and shall be responsible for all attorneys' fees and costs of the action. If O~eld declines to defend the City, Orfield shall be responsible for City's reasonable costs and attorneys' fees incurred in defense of Orfield actions that are adjudged to be negligent and shall allocate such fees and costs proportionally. O~eld's liability to the City shall not exceed the claim limits of Orfield's general liability policy, or other applicable policy, which Orfield agrees to keep in force during the claims period. 17. Orfield shall provide to the City evidence of insurance, and coverage limits, as follows and shall list the .City as an additional insured on Orfield's general liability insurance policy: Workers' comp; General liability; Umbrella liability; Automobile liability; Professional liability. C 342897v3 JMS RC145-563 4, Orfield shall maintain such coverages as necessary during the claims period. and shall provide City with a thirty-day (30) written notice prior to any cancellation of insurance during the claims period. 18. This Agreement is subject to all applicable laws and ordinances and shall be governed by Minnesota law. ORFIELD LABORATORIES, INC. By Steven J. Orfield Its President • CITY OF RICHFIELD By Debbie Goettel Its Mayor CITY OF RICHFEILD By Steve Devich Its City Manager 342897v3 JMS RC145-563 5 11/19/08 clean copy AGREEMENT BETWEEN THE CITY OF RICHFIELD • . ~ "OWNER"AND WOLD ARCHITECTS AND ENGINEERS FOR PROFESSIONAL SERVICES THIS AGREEMENT is made and effective as of November, 2008, between the City of Richfield, a municipal corporation of the State of Minnesota ("OWNER") through its Mayor and City Manager with offices at 6700 Portland Avenue, Richfield, MN, 55423-2599 and Wold Architects and Engineers, a Minnesota corporation ("ARCHITECT"), with offices at 305 St. Peter Street, St. Paul, MN 55102. OWNER intends to use the services of ARCHITECT for the design of OWNER's new city hall ("Project" or "City Hall"). For ease of administration, ARCHITECT has prepared a list of standard services and prices from which OWNER may choose by completing a work authorization form attached as Exhibit A ("Work Order"). OWNER and ARCHITECT, in consideration of their mutual covenants herein, agree in respect of the performance or furnishing of professional architectural services by ARCHITECT with respect to the Project and the payment for those services by OWNER as set forth below. SECTION 1- GENERAL 1.1 Standard of Care ARCHITECT shall perform for or furnish to OWNER professional architectural -and related services in all phases of the Project to which this Agreement applies as hereinafter provided. ARCHITECT shall serve as OWNER's prime design professional and architectural representative for the Project providing professional architectural consultation and advice. ARCHITECT may employ such ARCHITECT'S Consultants as ARCHITECT deems necessary to assist in the performance or furnishing of professional engineering and related services hereunder. ARCHITECT shall not be required to employ any ARCHITECT'S Consultant unacceptable to ARCHITECT. The standard of care for all professional architectural and related services performed or furnished by ARCHITECT under this Agreement will be that standard of care necessary to complete a successful project, based on the performance standards and other definitions of the Project. This Agreement sets forth specific Performance Standards that OWNER seeks to achieve in the Project through ARCHITECT's design to the reasonable satisfaction of OWNER as of thirty (30) days after the date of first occupancy. 1.2 Coordination with Other Documents It is the intention of the parties that the Standard General Conditions will be used as the General Conditions for the Project and that all amendments thereof and supplements thereto will be generally consistent therewith. Except as otherwise defined herein, the terms which have an 338819v7 JMS RC145-563 initial capital letter in this Agreement and are defined in the Standard General Conditions will be • used in this Agreement as defined in the Standard General Conditions. The term "defective" will be used in this Agreement as defined in the Standard General Conditions. This Agreement shall also be interpreted to incorporate the acoustics, lighting, daylighting, thermal comfort, and indoor air quality standards prepared pursuant to that certain City Hall. Building Performance Standards Consulting Agreement between Orfield Laboratories, Inc., and Owner dated _ ("Performance Standards Agreement") attached hereto as Appendix A. 1.3 Definitions Wherever used in this Agreement the following terms have the meanings indicated which are applicable to both the singular and plural thereof: 1.3.1 Additional Services. Additional Services means the services to be performed for or furnished to OWNER by ARCHITECT described in Section 3 of this Agreement. Additional Services shall be commenced by ARCHITECT upon receipt of an executed Work Order or Revised Work Order. 1.3.2 Agreement. Agreement means this Standard Form of Agreement between OWNER and ARCHITECT for Professional Services including those exhibits listed in Section 8 of this Agreement. ,1.3.3 Basic Services. Basic Services means the services to be performed for or furnished to • OWNER by ARCHITECT described in Section 2 of this Agreement. 1.3.4 Construction Cost. Construction Cost means the total cost to OWNER of those portions of the entire Project designed or specified by ARCHITECT. Construction Cost does not include ARCHITECT's compensation and expenses, the cost of land, rights-of--way, or compensation for or damages to properties, or OWNER's legal, accounting, insurance counseling or auditing services, or interest and financing charges incurred in connection with the Project or the cost of other services to be provided by others to OWNER pursuant to Section 4 of this Agreement. Construction Cost is one of the items comprising Total Project Costs. 1.3.5 Construction Manager. Construction Manager means the company the Owner hires to perform construction management services prior to and during the construction of the City Hall. 1.3.6 Contractor. Contractor means the person or entity with whom OWNER enters into a written agreement covering construction work to be performed or furnished with respect to the Project. 1.3.7 ARCHITECT'S Consultant. ARCHITECT's Consultant means a person or entity having a contract with ARCHITECT to perform or furnish Basic or Additional Services as ARCHITECT's independent professional associate or consultant engaged directly on the Project. • 338819v7 JMS RC145-563 1.3.8 Performance Standards. Performance Standards mean aesthetic and functional aspects of • the City Hall design and construction. that shall be incorporated by ARCHITECT to the reasonable satisfaction of OWNER pursuant to the Standards developed under the Performance Standards Agreement. 1.3.9 Reimbursable Expenses. Reimbursable Expenses means the expenses incurred directly in connection with the performance or furnishing of Basic and Additional Services for the Project for which OWNER shall pay ARCHITECT as indicated in Section 5, below, or in a Work Order. Reimbursable expenses include but are not limited to: approved consultant fees, expense of transportation, parking, meals, postage, including special delivery fees, zoning application fees, inspection- fees, permit fees, and charges for blueprints and reproduction. The amount payable for Reimbursable Expenses will be the charge actually incurred by ARCHITECT therefor. Reimbursables shall be subject to and limited by the Total Maximum Architect Fee. 1.3.10 Resident Project Representative. Resident Project Representative means the authorized representative of ARCHITECT who may be assigned to assist ARCHITECT at the site during the Construction Phase if desired by OWNER. The Resident Project Representative will be ,ARCHITECT'S agent or employee and under ARCHITECT'S supervision. As used herein, the term Resident Project Representative includes any assistants of Resident Project Representative agreed to by OWNER. If a Resident Project Representative is to be used for any Project, this Agreement shall include Exhibit B which sets forth the duties and responsibilities of the Resident Project Representative, "Duties, Responsibilities and Limitations of Authority of Resident Project Representative" in a written supplement prepared at the time the • Representative is established. 1.3.11 Standard General Conditions. Standard General Conditions means the Standard General Conditions of the Construction Contract (No. C-700) (2002 Edition) of the Engineers Joint Contract Documents Committee, as it maybe amended by Owner. 1.3.12 Total Maximum Architect Fee. Total Maximum Architect Fee means the total maximum fees and reimbursables to which Architect is entitled under this Agreement. The Total Maximum Architect Fee shall not exceed the agreed upon Architect's Fee of Nine Hundred and Seventy-three Thousand Dollars ($973, 900.00) ("Fee") plus Fifty-two Thousand One Hundred Ninety-five ($52,195.00) Dollars, for all Additional Services and Seventy-four Thousand Four Hundred ($74,400.00) Dollars for Reimbursable Expenses, for a maximum of One Million One Hundred Thousand Five Hundred Dollars ($1,100,500.00) combined. For purposes of the Total Maximum Architect Fee, an increase in the Total Estimated Construction Cost without an expanded scope of the Project shall not increase the Fee. 1.3.13 Total Project Costs. Total Project Costs means the sum of the Construction Cost, allowances for contingencies, the total costs of design professional and related services provided by ARCHITECT and (on the basis of information furnished by OWNER) allowances for such other items as charges of all other professionals and consultants, for the cost of land and rights-of--way, for compensation for or damages to properties, for interest and financing charges and for other services to be provided by others to OWNER under paragraphs 4.4, 4.5 and 4.7 through 4.14, inclusive. 338819v7 JMS RC145-563 3 • 1.3.14 Direct Labor Cost. Direct Labor Cost means salaries and wages (basic, premium and incentive) paid to ARCHITECT'S personnel, but does not include indirect payroll related to costs or fringe benefits. Direct Labor Cost will be adjusted annually and equitably to reflect changes in various elements that comprise such Direct Labor Cost. All such adjustments will be in accordance with generally accepted accounting practices as applied on a consistent basis by ARCHITECT ' and consistent with ARCHITECT'S overall- compensation practices and procedures. SECTION 2 -BASIC SERVICES OF ARCHITECT 2.1 Study and Report Phase: "A" Phase (Completed--6.58%) ARCHITECT shall, upon direction of the OWNER pursuant to any Work Order: 2.1.1. Consult with OWNER to finalize OWNER's requirements for the Project, including Project Performance Standards, and review available data. 2.1.2. Advise OWNER as to the necessity of OWNER'S providing or obtaining from others data or services of the types described in paragraph 3.1 which are not part of ARCHITECT's Basic Services. 2.1.3. Identify and analyze requirements of governmental authorities having jurisdiction to • approve the portions of the Project designed or specified by ARCHITECT with whom consultation is to be undertaken in connection with the Project. 2.1.4. Evaluate various alternate solutions available to OWNER as described in any Work Order, and, after consultation with OWNER, recommend to OWNER those solutions which in ARCHITECT'S judgment best meet OWNER'S requirements for the Project. 2.1.5. Prepare a report ("Report) that will contain the statement of OWNER'S requirements for the Project and, as appropriate, will contain schematic layouts, sketches and conceptual design criteria with appropriate exhibits to indicate the considerations involved and those alternate solutions available to OWNER which ARCHITECT recommends to accomplish OWNER'S goals. This Report will be accompanied by ARCHITECT's opinion of Total Project Costs for each solution recommended for the Project, including the following that will be separately itemized: opinion of the probable Construction Cost, allowances for contingencies and for the estimated total costs of design professional and related services provided by ARCHITECT and, on the basis of information furnished by OWNER, allowances for other items and services included within the defmition of Total Project Costs. 2.1.6. Furnish the Report to and review it with OWNER. 2.1.7. Revise the Report in response to OWNER'S comments, as appropriate, and furnish final copies of the Report in the number set forth in any Work Order. 338819v7 JMS RC145-563 4 2.1.8. Submit the Report within the stipulated period indicated in a Work Order. ARCHITECT'S services under the Study and Report Phase will be considered complete the date when the Report has been accepted by OWNER, in writing; plus such additional time as may be considered reasonable for obtaining approval of governmental authorities having jurisdiction to review the portions of the Project designed or specified by ARCHITECT, if such approval is to be obtained during the Study and Report Phase. The duties and responsibilities of ARCHITECT during the Study and Report Phase as set forth in this paragraph 2.1 are amended and supplemented as indicated in any Work Order. 2.2. Schematic Plan Phase: "B" Phase (Schematic Design--8.42%) ARCHITECT shall, upon direction of the OWNER pursuant to any Work Order: 2.2.1 Consult with OWNER to understand OWNER's requirements for the Project, including Project Performance Standards, and review available data. 2.2.2 Prepare an 8 lh inch x 11 inch CAD generated site Plan which will reflect the OWNER's standard requirements for the Project incorporated onto the site and, as appropriate, will indicate the considerations involved and those alternate solutions available to OWNER which ARCHITECT recommends, on the basis of information furnished and by OWNER. No zoning review, building code requirements, boundary or topographic information is included in the • Sketch. 2.2.3 Furnish the Sketch to OWNER. 2.2.4 Revisions to the Sketch in response to OWNER's comments on Performance Standards will not be an Additional Service. 2.2.5 Submit the Plan within the stipulated period indicated in any Work Order. The duties and responsibilities of ARCHITECT during the Sketch Phase "B" as set forth in this ,paragraph 2.2 are amended and supplemented as indicated in any Work Order. 2.3 Preliminary Design Phase: "C" Phase (Design Development--20%) After acceptance by OWNER of the Plan, selection by OWNER of a recommended solution and indication of any specific modifications or changes in the scope, extent, character or design requirements of the Project desired by Owner, and upon written authorization from OWNER as set forth in any Work Order, ARCHITECT shall perform one or more of the following services selected by OWNER: 2.3.1 Identify and analyze requirements of governmental authorities having jurisdiction to approve the portions of the Project designed or specified by ARCHITECT with whom • consultation is to be undertaken in connection with the Project. 338819v7 JMS RC145-563 5 . 2.3.2 Advise OWNER as-to the necessity of OWNER's providing or obtaining from others data or services of the types described in paragraph 4.4 which are not part of ARCHITECT's Basic Services, and assist OWNER in obtaining such data and services. 2.3.3 On the basis of the Plan, the recommended solution selected by OWNER and the specific modifications or changes in the scope, extent; character or design requirements of the Project agreed upon by OWNER and ARCHITECT, prepare Preliminary Design documents consisting of preliminary site plan revisions based on the zoning requirements; preliminary grading plan, preliminary utility plan, preliminary site data analysis, preliminary storm water runoff analysis. 2.3.4 Advise OWNER whether additional reports, data or other information or services of the types described in paragraph 4.4 are necessary and assist OWNER in obtaining such reports, data or other information and services. 2.3.5 Prepare a site investigation report (the. "Report") for OWNER which will contain the results of ARCHITECT'S investigations of planning, zoning, utility, signage, a storm water drainage site access and building code issues applicable to the site in question. The Report will also contain permit and fee information. The Report will be based upon site location and boundaries provided by the OWNER, and ARCHITECT shall not be responsible for any independent verification of information supplied by OWNER. 2.3.6 ARCHITECT will submit the standard utility questionnaire to local gas, electric, • telephone, water, sewer, and drainage authorities for evaluation of site utilities: 2.3.7 ARCHITECT will coordinate geotechnical and survey subconsultants for each site as instructed in any Work Order. 2.3.8 ARCHITECT will prepare a landscape plan for the site for the purpose of meeting submittal requirements for site plan approval. 2.3.9 ARCHITECT will prepare a preliminary cost estimate reflecting ARCHITECT's opinion of Project costs for site improvements including an opinion of probable construction cost, allowance for contingencies, Performance Standards, and estimate costs of design services, but not including any earthwork takeoff for quantities. 2.3.10 ARCHITECT will assist the OWNER in the zoning and permitting for the Project. The duties and responsibilities of ARCHITECT during the Preliminary Design "C" Phase as set forth in this paragraph 2.3 are amended and supplemented as indicated in any Work Order. 2.4. Final Des~n Phase: "D" Phase (Construction Documents--40%) After acceptance by OWNER of the Preliminary Design Phase documents and revised opinion of probable Construction Cost and indication of any specific modifications or S changes in .the scope, extent, character or design requirements of the Project desired by 338819v7 JMS RC145-563 OWNER, and upon written authorization .from OWNER in the form of a Work Order, • ARCHITECT shall perform one or more of the following services selected by OWNER: 2.4.1. On the basis of the accepted Preliminary Design documents, the modifications or changes in the scope; extent, character or design requirements of the Project agreed upon by OWNER and ARCHITECT, including Performance Standards, and the revised `opinion of probable Construction Cost, prepare for incorporation in the Contract Documents final Drawings showing the. scope, extent and character of the work to be performed and furnished by Contractor and Specifications (which will be prepared, where appropriate, in general conformance with the sixteen division format of the Construction Specifications Institute). 2.4.2. Provide technical criteria, written descriptions and design data for OWNER's use in filing applications -for permits with or obtaining approvals of such governmental authorities as have jurisdiction to review or approve the final design of the Project, and assist OWNER in consultations with appropriate authorities. 2.4.3. Advise OWNER of any adjustments to the opinion of probable Construction Cost and any adjustments to Total Project Costs known to ARCHITECT, as a result of changes in scope, extent or character or design requirements of the Project. 2.4.4. Furnish the above documents, Drawings and Specifications to and review them with OWNER. • 2.4.5. Submit the above documents, Drawings and Specifications and a revised opinion of probable Construction Cost within the stipulated period indicated in any Work Order. 2.4.6 ARCHITECT's services under the Final Design Phase will be considered complete the date when the submittals have been accepted by OWNER in writing, plus such additional time as may be considered reasonable for obtaining approval of governmental authorities having jurisdiction to approve the portions of the Project designed or specified by ARCHITECT, if such approval is to be obtained during the Final Design Phase. The duties and responsibilities of ARCHITECT during the Final Design "D" Phase as set forth in this paragraph 2.4 are amended and supplemented as indicated in any Work Order. 2.5. Bidding Phase: "E" Phase (5%) After acceptance by OWNER of the ARCHITECT'S Drawings, Specifications and other Final Design Phase. documentation (including the most recent opinion of probable Construction Cost), and upon written authorization in the form of a Work Order, ARCHITECT shall: 2.5.1. Assist OWNER in advertising for and obtaining bids for the contract for construction, materials, equipment and services; and, where applicable, maintain a record of prospective bidders to whom Bidding Documents have been issued, attend pre-bid conferences, if any, and receive and process deposits for Bidding Documents. 338819v7 JMS RC145-563 2.5.2. Timely issue Addenda as appropriate to clarify, correct or change the Bidding Documents. 2.5.3. Consult with OWNER as to the acceptability of subcontractors, suppliers and other persons and entities proposed by Contractor for those portions of the work as to which such acceptability is required by the Bidding Documents. 2.5.4. Attend the bid opening, prepare bid tabulation sheets and assist OWNER in evaluating bids or proposals and in assembling and awarding contract for construction,. materials, equipment and services. 2.5.5. The Bidding Phase will terminate and the services to be performed or furnished thereunder will be considered complete upon commencement of the Construction Phase. ~- The duties and responsibilities of ARCHITECT during the Bidding "E" Phase as set forth in this paragraph 2.5. are amended and supplemented as indicated in Any Work Order. 2.6. Construction Phase: "F" Phase (Observation--18%) During the Construction Phase, OWNER may request that ARCHITECT perform the following services: 2.6.1. Visits to Site and Observation of Construction. In connection with observations of the • work of Contractor while it is in progress: 2.6.1.1 ARCHITECT. shall make visits to the site at intervals appropriate. to the various stages of construction as: OWNER deems necessary in order to observe as an experienced and qualified design professional the progress and quality of the various aspects of Contractor's work. Because OWNER will retain the services of a construction manager for the Project, such visits and observations by ARCHITECT are not intended to be exhaustive or to extend to every aspect of the work in progress, or to involve detailed inspections of the work beyond the responsibilities specifically assigned to ARCHITECT in this Agreement and the Contract Documents. Rather they are to be limited to spot checking, selective sampling and similar methods of general observation of the work based on ARCHITECT's exercise of professional judgment. Based on information obtained during such visits and such observations, ARCHITECT shall endeavor to determine if such work is proceeding in accordance with the Contract Documents and ARCHITECT shall keep OWNER informed of the progress of the work, including but not limited to the contractor's incorporation of the Performance Standards into the construction. The responsibilities of ARCHITECT contained in this paragraph are expressly subject to the limitations set forth in paragraph 2.6.1.2 and other express or general limitations in this Agreement and elsewhere. 2.6.1.2 The purpose of ARCHITECT'S visits to the site will be to enable ARCHITECT to better carry out the duties and responsibilities assigned to and undertaken by ARCHITECT during the Construction Phase, and, in addition, by the exercise of ARCHITECT'S efforts as an experienced and qualified design professional, to provide for 338819v7 JMS RC145-563 $ required by laws, rules, regulations, ordinances, codes, orders or the Contract Documents. ARCHITECT'S review of such certificates will be for the purpose of determining that the results .certified indicate compliance with .the Contract Documents and will not constitute an independent evaluation that the content or procedures of such inspections, tests or approvals comply with the requirements of the Contract Documents. ARCHITECT shall be entitled to rely on the results of such tests. 2.6.8. Disagreements between OWNER and Contractor. ARCHITECT shall render the initial decisions on all claims for OWNER and Contractor relating to the acceptability of the work or the interpretation of the requirements of the Contract Documents pertaining to the execution and progress of the work. In rendering such decisions, ARCHITECT shall be fair and not show partiality to OWNER or Contractor and shall not be liable in connection with any decision rendered in good faith in such capacity. 2.6.9. Limitation of Responsibilities. ARCHITECT shall not be responsible for the acts or omissions of any Contractor, or of any subcontractor, any supplier, or of any other person or organization performing or furnishing any of the work. Subject to Architect's duties under Section 1.1, ARCHITECT shall not be responsible for Contractor's failure to perform or furnish the work in accordance with the Contract Documents. 2.6.10. Coordination with Construction Manager. ARCHITECT shall work cooperatively with the Project Construction Manager, review .the OWNER-Construction Manager contract, and endeavor to communicate with OWNER and Construction Manager to avoid duplication of services provided by the Construction Manager on the Project. 2.7. Operational Phase: "G" Phase (Closeout--2% During the Operational Phase, OWNER may request that ARCHITECT perform one or more of the following services by issuing a Work Order: 2.7.1. Provide assistance in connection with the .refining and adjusting of any City Hall equipment or system. 2.7.2. Assist OWNER in training OWNER'S staff to operate and maintain the City Hall. 2.7.3. Assist OWNER in developing systems and procedures for control of the operation and maintenance of and record keeping for the City Hall. 2.7.4. Prepare a set of reproducible record drawings showing record information which ARCHITECT considers significant based on the Drawings, Shop Drawings, and other record documents furnished by Contractor to ARCHITECT which were annotated by Contractor to show all changes made during construction. ARCHITECT will not be responsible for any errors in or omissions in the information provided by Contractor that is incorporated in the record drawings or other record documents. • 338819v7 JMS RC145-563 10 2.7.5. In company with OWNER, visit the City Hall to observe any apparent defects in the .completed work, assist OWNER in consultations and discussions with Contractor concerning correction of such defects, and make, recommendations as to replacement or correction of defective work, specifically including work that does not meet Performance Standards. 2.7.6. Provide miscellaneous services as. required by OWNER in connection with Project closeout. 2.7.7. The Operations Phase may commence during the Construction Phase and will terminate one year after the date of Substantial Completion or as stated in any Work Order. The duties and responsibilities of ARCHITECT during the Operational Phase as set forth in this paragraph 2.7 are amended and supplemented as indicated in any Work Order. SECTION 3 -ADDITIONAL SERVICES OF ARCHITECT 3.1 Additional Services Requiring Authorization in Advance If authorized in writing by OWNER, ARCHITECT shall furnish or obtain from others Additional Services of the types listed in paragraphs 3.1.1 through 3.1.19, inclusive, as amended and supplemented as indicated in any Work Order. These services are not included as part of Basic Services except, to the extent otherwise provided in any Work Order. These services will be paid for by OWNER as indicated in Section 5 or in the Work Order, but are subject to the • .limitation of the Total Maximum Architect Fee. 3.1.1 Preparation of applications and supporting documents (in addition to those furnished under Basic Services) for private or governmental grants, loans or advances in connection with the Project; preparation or review of environmental assessments and impact statements; review and evaluation of the effect on the design requirements of the Project of any such statements and documents prepared by others; and assistance in obtaining approvals of authorities having jurisdiction over the anticipated environmental impact of the Project. 3.1.2 Services to make measured drawings of or to investigate existing conditions or facilities, or to verify the accuracy of drawings or other information furnished by OWNER. 3.1.3 Services resulting from evaluation by ARCHITECT during the Study and Report Phase at OWNER's request of alternative solutions in addition to those specified in any Work Order. 3.1.4 Services resulting from significant changes in the scope, extent or character of the portions of the Project designed or specified by ARCHITECT or its design requirements including, but not limited to, changes in size, complexity, OWNER's schedule, character of construction or method of financing; and revising previously accepted studies, reports, Drawings, Specifications or Contract Documents when such revisions are required by changes in laws, rules, regulations, ordinances, codes or orders enacted subsequent to the preparation of such studies, reports, Drawings, Specifications, or Contract Documents, or are due to any other causes beyond ARCHITECT's control 338819v7 JMS RC145-563. 11 • 3.1.5 Services resulting from facts revealed about conditions: 3.1.5.1 which are different from information about such conditions that OWNER previously provided to ARCHITECT under paragraph 4.4 and upon which ARCHITECT was entitled to rely; or 3.1.5.2 as to which OWNER had responsibility to provide information under paragraph 4.4 if such information was not previously provided. 3.1.6 Providing renderings or models for OWNER' S use. 3.1.7 Preparing documents for alternate bids requested by OWNER for .Contractor's work which is not executed or documents for out-of-sequence work. 3.1.8 Undertaking investigations and studies including, but not limited to, detailed consideration of operations, maintenance and overhead expenses; the preparation of feasibility studies, cash flow and economic evaluations, rate schedules and appraisals; assistance in obtaining financing for the Project; evaluating processes available for licensing and assisting OWNER in obtaining process licensing; detailed quantity surveys of materials, equipment and labor; and audits or .inventories required in connection with construction performed by OWNER. - • 3.1.9 Furnishing services of ARCHITECT's Consultants for other than Basic Services; and furnishing data or services of the types described in paragraph 4.4 when OWNER employs ARCHITECT to provide such data or services in lieu of furnishing the same under paragraph 4.4. 3.1.10 Services attributable to a variation in the number of prime contracts from the number specified in any Work Order for work designed or specified by ARCHITECT. 3.1.11 Services during out-of--town travel required of ARCHITECT other than visits to the site or OWNER's office as required by any Work Order. - 3.1.12 Preparing for, coordinating with, ,participating in and responding to structured independent review processes, including, but not limited to, Construction Management, Cost Estimating, Project Peer Review, Value Engineering and Constructability Review requested by OWNER; and. performing or furnishing services required to revise studies, reports, Drawings, Specifications or Contract Documents as a result of such review processes. 3.1.13 Determining the acceptability of substitute materials and equipment proposed during the Bidding or Negotiating Phase when substitution prior to the award of contracts is allowed by the Bidding Documents. 3.1.14. Assistance in connection with bid protests, rebidding or renegotiating contracts for construction, materials, equipment or services. 338819v7 JMS RC145-563 12 3.1.15 Providing field surveys for design purposes, engineering surveys and staking to enable Contractor to proceed with- its work, and any type of property surveys or related engineering services needed for the transfer of interests in real property; and providing other special field surveys. 3.1.16 Preparation of operating, maintenance and staffing manuals to supplement Basic Services under paragraph 2.7.2. 3.1.17 Preparing to serve or serving as a consultant or witness for OWNER in any litigation, arbitration or .other legal or administrative proceeding involving the. Project (except for assistance in consultations which is included as part of Basic Services under paragraphs 2.2.3 and 2.3.2. 3.1.18 Providing more extensive services required to enable ARCHITECT to issue notices or certifications requested by OWNER under paragraph 4.12. 3.1.19 Other additional services performed or furnished by ARCHITECT in connection with the Project, including ,services which are to be famished by OWNER under. Section 4, and services not otherwise provided for in this Agreement. 3.2 Required Additional Services • When required by the Contract Documents in connection with the performance or furnishing of ARCHITECT's services during the Construction Phase, ARCHITECT shall perform or furnish, without waiting for specific authorization from OWNER, Additional Services of the types listed in paragraphs 3.2.1 through 3.2.6, inclusive. These services are not included as part of Basic Services except to the extent provided in any Work Order. Required Additional Services will be paid for by OWNER as indicated in Section 5, but are subject to the limitation of the Total Maximum Architect Fee. ARCHITECT shall advise OWNER in writing promptly after starting any such Additional Services. 3.2.1 Services in connection with Work Change Directives and Change Orders to reflect changes requested by OWNER if, because of the method of compensation agreed upon by OWNER and ARCHITECT, the resulting .change in compensation for Basic Services is not commensurate with the extent of the additional services rendered. 3.2.2 Services in making revisions to Drawings and Specifications occasioned by the acceptance of substitute materials or equipment other than "or-equal" items; .and services after the award of the construction contract in evaluating and determining the acceptability of a substitution which is inappropriate for the Project or an excessive number of substitutions. 3.2.3 Services resulting from significant delays, changes or price increases occurring as a direct or indirect result of materials, equipment or energy shortages. • 338819v7 JMS RC145-563 13 3.2.4 Additional or extended services during construction made necessary by (1) work • damaged by fire or other cause during construction, (2) a significant amount of defective, neglected or delayed work of Contractor, (3) acceleration of the progress schedule involving services beyond normal working hours, or (4) default by Contractor. 3.2.5 Services (other than Basic Services during the Operational Phase) in connection with any partial utilization of any part of the Project by OWNER prior to its Substantial Completion. 3.2.6 Evaluating an unreasonable claim or an excessive number of claims submitted by Contractor or others in connection with the work. SECTION 4 -OWNER'S RESPONSIBILITIES Except as .otherwise provided in any Work Order, OWNER shall do the following in a timely manner so as not to delay the services of ARCHITECT and shall bear all costs incident thereto: 4.1 Designate in writing a person to act as OWNER's representative with respect to the services to be performed or furnished by ARCHITECT under this Agreement. Such person will have that authority delegated to him or her in writing by Owner's council. 4.2 Provide all criteria and full information as to OWNER's requirements for the Project, • including design objectives and constraints, space, capacity and performance requirements, flexibility and expendability, and any budgetary limitations; and furnish copies of all design and construction standards which OWNER will require to be included in the Drawings and Specifications. 4.3 Assist ARCHITECT by placing at ARCHITECT'S disposal all available information pertinent to the Project including previous reports and any other data relative to design or construction of the Project. 4.4 Furnish to ARCHITECT, as requested by ARCHITECT for performance of Basic Services or as required by the Contract Documents, the following: 4.4.1 data prepared by or services of others, including without limitation explorations and tests of subsurface conditions at or contiguous to the site, drawings of physical conditions in or relating to existing surface or subsurface structures at or contiguous to the site, or hydrographic surveys; 4.4.2 the services of an independent testing laboratory to perform all inspections, tests and approvals of samples, materials and equipment prior to and after installation, or to evaluate the performance of materials, equipment and facilities of OWNER, prior to specification, and during construction; • 4.4.3 appropriate professional interpretations of all of the foregoing; 338819v7 JMS RC145-563 14 • 4.4.3.1 environmental assessments, audits, investigations and impact statements, and other relevant environmental or cultural studies as to the Project, the site and adjacent areas; 4.4.3.2 held surveys for design purposes and property, boundary, easement, right-of--way, topographic and utility surveys or data, including relevant reference points; 4.4.3.3 property descriptions; 4.4.3.4zoning, deed and other land use restrictions; and 4.4.3.5. other special data or consultations not covered in Section 2. Unless qualified or disclaimed in writing, OWNER shall be responsible for, and ARCHITECT may rely upon, the accuracy and completeness of all reports, data and other information furnished pursuant to this paragraph. ARCHITECT may use such reports, data and information in performing or furnishing services under this Agreement. 4.5 Provide, as required by the Contract Documents, engineering surveys, staking and • restaking to enable Contractor to proceed with the layout of the work, and other special field surveys. 4.6 Arrange for access to and make all provisions for ARCHITECT to enter upon public and private property as required for ARCHITECT to perform services under this Agreement. 4.7 Examine all alternate solutions, studies, reports, sketches, Drawings, Specifications, proposals and other documents presented by ARCHITECT (including obtaining advice of an attorney, insurance counselor and other consultants as OWNER deems appropriate with respect to such examination) and render in writing decisions pertaining thereto. 4.8 Provide approvals and permits from all governmental authorities having jurisdiction to approve the portions of the Project designed or specified by ARCHITECT and such approvals and consents from others as maybe necessary for completion of such portions of the Project. 4.9 Provide, as maybe required. for the Project: 4.9.1 accounting, bond and financial advisory, independent cost estimating and insurance counseling services; • 338819v7 JMS RC145-563 15 4.9.2 such legal services as OWNER may require or ARCHITECT may reasonably • request with regard to legal issues pertaining to the Project, including any that may be raised by Contractor; and 4.9.3 such auditing services as OWNER may require to ascertain how or for what purpose Contractor has used the moneys paid on account of the Contract Price. 4.10 Provide such inspection or monitoring services by an individual or entity other than ARCHITECT as OWNER may desire to verify: 4.10.1 that Contractor is complying with any. law, rule, regulation, ordinance, code or order applicable to Contractor's performing and furnishing the work; or 4.10.2 that Contractor is taking all necessary precautions for safety of persons or property and complying with any special provisions of the Contract Documents applicable to safety. ARCHITECT does not undertake in this Agreement to perform the services referred to in 4.10.1 and 4.10.2 above. The identity of any individual or entity employed to perform such services and the scope of such services will be disclosed to ARCHITECT. 4.11 Advise ARCHITECT of the identity and scope of services of any independent consultants employed by OWNER to perform or furnish services in regard to the Project, • including, but not limited to, Construction Management, Cost Estimating, Project Peer Review, Value Engineering and Constructability Review. If OWNER designates a person or entity other than, or in addition to, ARCHITECT to represent OWNER at the site, OWNER shall define and set forth in an exhibit that is to be mutually agreed upon and attached to and made a part of this Agreement before such services begin, the duties, responsibilities and limitations of authority of such other party and the relation thereof to the duties, responsibilities and authority of ARCHITECT. 4.12 Prior to the commencement of the Construction Phase, notify ARCHITECT of any variations in the language of the Notice of Acceptability of Work, which if applicable, is attached hereto as Exhibit B, "Notice of Acceptability of Work", ("Exhibit B") or of any notice or certification other than such Notice that ARCHITECT will be requested to provide to OWNER or third parties in connection with the financing or completion of the .Project. OWNER and ARCHITECT shall reach agreement on the terms of any such requested notice or certification and OWNER shall authorize such Additional Services as are necessary to enable ARCHITECT to provide the notice or certification requested under this paragraph. 4.13 If more than one prime contract is to be awarded for work designed or specified by ARCHITECT to designate a person or entity to -have authority and responsibility for coordinating the activities among the various prime contractors, and define and set forth the duties, responsibilities and limitations of authority of such person or entity and the relation thereof to the duties, responsibilities 'and authority of ARCHITECT in an exhibit that is to be .7 338819v7 JMS RC145-563 16 mutually agreed upon and attached to" and made a part of this Agreement before such services • begin. 4.14. Furnish to ARCHITECT data or estimated figures as to OWNER'S anticipated costs for services to be provided by others for OWNER (such as services pursuant to paragraphs 4.4, 4.5 and 4.7 through 4.14, inclusive) and other costs so that ARCHITECT may make the necessary calculations to develop and periodically adjust ARCHITECT's opinion of Total Project Costs. 4.15 Attend the pre-bid conference, :bid opening, pre-construction conferences, construction progress and other job-related meetings and Substantial Completion and final payment inspections. 4.16 Give prompt written notice to ARCHITECT whenever OWNER observes or otherwise becomes aware of any development that affects the scope or time of performance or furnishing of ARCHITECT'S services, or any defect or nonconformance in ARCHITECT's services or in the work of any Contractor. 4.17 Furnish, or direct ARCHITECT to provide, Additional Services, as stipulated in paragraph 3.1 of this Agreement or other services as required. SECTION 5 -PAYMENTS TO ARCIITECT FOR SERVICES AND REIMBURSABLE EXPENSES • 5.1 Methods of Payment for Services and Expenses of ARCHITECT 5.1.1 For Basic Services. OWNER shall pay ARCHITECT for Basic Services performed or furnished under Section 2 on the basis of one of the payment methods selected in the Work Order. 5.1.2 For Additional Services. OWNER shall pay ARCHITECT for Additional Services performed or furnished under Section 3 on the basis of one of the payment methods, as stated in any Work Order. 5.1.3 For Reimbursable Expenses. Subject to the Total Maximum Architect Fee, in addition to payments provided for in paragraphs. 5.1.1 and 5.1.2, OWNER shall pay ARCHITECT for Reimbursable Expenses at direct cost. 5.2. Other Provisions Concerning Pmts 5.2.1 Preparation of Invoices. Invoices for Basic and Additional Services and Reimbursable Expenses will be prepared in accordance with ARCHITECT'S standard invoicing practices and include the form attached hereto as' Exhibit E and in adherence to the invoice standards set forth in Exhibit F and will be submitted to OWNER by ARCHITECT at least monthly. The amount billed for Basic Services and Additional Services. in each invoice will be calculated on the basis • set forth in 5.1.1 and 5.1.2 or in the Work Order. Invoices are due and payable on receipt. 338819v7 JMS RC145-563 j'7 5.2.2 Unpaid Invoices. Owner shall comply with the Minnesota Municipal Prompt Payment • Act. ARCHITECT may, after giving seven days' written notice to OWNER, suspend services under this Agreement until ARCHITECT has been paid in full all amounts due for services, expenses and charges about which there is no good-faith dispute. Payments will be credited first to interest and then to principal. In the event of a disputed or contested billing, only that portion so contested may be withheld from payment, and the undisputed portion will be paid. However, if OWNER's failure to pay within said thirty-five days is due to a good faith dispute with ARCHITECT, OWNER shall pay that portion of the invoice not in dispute and interest shall not accrue on the un-paid portion. Payments Upon Termination. 5.2.3.1 Termination by OWNER for Cause. In the event of termination by OWNER for cause under paragraph 7.1.1: 5.2.3.1.1 Upon the completion of any phase of Basic Services, progress payments due ARCHITECT in accordance with this Agreement for all such services performed or furnished by ARCHITECT and ARCHITECT'S Consultants through the completion of such phase will constitute total payment for such services. Subject to the Total Maximum Architect Fee, ARCHITECT also will be paid for all unpaid Additional Services and unpaid Reimbursable Expenses. 5.2.3.1.2During any phase of the Basic Services, ARCHITECT also will be paid for such • services performed or furnished in accordance with this Agreement by ARCHITECT during that phase through the date of termination on the basis specified in Section 5.1.2. above. ARCHITECT also will be paid for the charges of ARCHITECT'S Consultants employed to perform or furnish Basic Services to the extent such services have been performed or famished in accordance with this Agreement through the effective date of the termination.. Subject to the Total Maximum Architect Fee,. ARCHITECT also will be paid for all unpaid Additional services and unpaid Reimbursable Expenses. 5.2.3.2 Termination by OWNER far Convenience. In the event of termination by OWNER under paragraph 7.1.2: 5.2.3.2.1 Upon the completion of any phase of Basic Services, progress payments due ARCHITECT in accordance with this Agreement for all. such services performed or furnished by ARCHITECT and ARCHITECT's Consultants through the completion of such phase. will constitute total payment for such services. Subject to the Total Maximum Architect Fee, ARCHITECT also will be paid for all unpaid Additional services and unpaid Reimbursable Expenses. 5.2.3.2.2During any phase of Basic Services, ARCHITECT also will be paid for such services performed or furnished by ARCHITECT during that phase through the date of termination on the basis specified in Sections 5.1.1 and 5.1.2 above. In addition, ARCHITECT will be paid for the charges of ARCHITECT's . Consultants employed to perform or furnish Basic Services through the effective 338819v7 JMS RC145-563 18 date of the termination. Subject to the Total Maximum .Architect Fee, . ARCHITECT also will be paid for all unpaid .Additional Services and unpaid Reimbursable Expenses. 5.2.3.3 Termination by ARCHITECT for Cause. In the event of termination by ARCHITECT for cause under paragraph 7.1.1, ARCHITECT shall be entitled to receive compensation calculated as set forth in paragraph 5.2.3.2. • • 5.2.4 Records of ARCHITECT's Costs. Records of ARCHITECT's costs pertinent to ARCHITECT'S compensation under this Agreement will be kept in accordance with generally accepted accounting practices. Copies will be made available to OWNER at cost on request prior to final payment for ARCHITECT's services. 5.2.5 Progress Reports. Monthly invoices. shall be accompanied by a progress report in the form attached hereto as Exhibit C. SECTION 6 -OPINIONS OF COST 6.1 Opinions of Probable Construction Cost ARCHITECT'S opinions of probable Construction Cost provided for herein are to be made on the basis of ARCHITECT'S experience and qualifications and represent ARCHITECT'S best judgment as an experienced and qualified professional engineer generally familiar with the construction industry. However, since ARCHITECT has no control over the cost of labor, materials, equipment or services furnished by others, or over the Contractor's methods of determining prices, or over competitive bidding or market conditions, ARCHITECT cannot and does not guarantee that proposals, bids or actual Construction Cost will not vary from opinions of probable Construction Cost prepared by ARCHITECT. If OWNER wishes greater assurance as to probable Construction Cost, OWNER shall employ an independent cost estimator as provided in Section 4.0. No Opinion of Probable Construction Cost or Opinion of Total Project Cost rendered for an increase in such Costs shall increase Architect's Fee or the Total Maximum Architect fee, unless there is a change in the scope of the Project. 6.2 Opinions of Total Project Costs ARCHITECT assumes no responsibility for the accuracy of opinions of Total Project Costs provided for in Section 2. 6.3 If any Work Order establishes a Construction Cost limit between OWNER and ARCHITECT, the following conditions apply: 6.3.1 A contingency of ten percent will be included in any Construction Cost limit established unless another amount is agreed upon in waiting. 338819v7 JMS RC145-563 19 6.3.2 The acceptance by OWNER at anytime during Basic Services of a revised opinion • of probable Construction Cost in excess of the then established Construction Cost limit will constitute a corresponding increase in the Construction Cost limit. 6.3.3 ARCHITECT will be permitted to determine what types of materials, equipment and component systems and the types and quality thereof are to be included in the Drawings and Specifications and to make reasonable adjustments in the scope, extent and character of the Project to the extent consistent with the Project requirements and sound engineering practices to bring it within the Construction Cost limit. 6.3.4 If the Bidding or Negotiating Phase has not commenced within three months after completion of the Final Design Phase, or if industry-wide prices are changed because of unusual or unanticipated events affecting the general level of prices or times of delivery in the construction industry, the established Construction Cost limit will not be binding on ARCHITECT, and OWNER shall consent to an adjustment in such Construction Cost limit commensurate with any applicable change in the general level of prices in the construction industry between the date of completion of the Final Design Phase and the date on which proposals or bids are sought. 6.3.5 If the lowest bona fide proposal or bid exceeds the established Construction Cost limit, OWNER. shall (1) give written approval to increase such Construction Cost limit, (2) authorize negotiating or rebidding the Project within a reasonable time, or (3) cooperate in revising the Project's scope, extent or character to the extent consistent with • the Project's requirements- and with sound engineering practices. In the case of (3), ARCHITECT shall modify the Contract Documents as necessary to bring the Construction Cost within the Construction Cost limit. In lieu of other compensation for services in making such modifications, OWNER shall pay ARCHITECT's cost of such services including the costs of the services of ARCHITECT'S Consultants, all overhead expenses reasonably related thereto and Reimbursable Expenses, but without profit to ARCHITECT on account of such services. The providing of such services will be the limit of ARCHITECT'S responsibility in this regard and, having done so, ARCHITECT shall be entitled to payment for services and expenses in accordance with this Agreement and will not otherwise be liable for damages attributable to the lowest bona fide proposal or bid exceeding the established Construction Cost. SECTION 7 -GENERAL CONSIDERATIONS 7.1 Termination The obligation to provide further services under this Agreement maybe terminated: 7.1.1 For cause, 7.1.1.1 by either party upon thirty days' written notice in the event of substantial failure by the other party to perform in accordance with the terms hereof through no fault of the terminating parry. Notwithstanding the foregoing, this Agreement will not terminate as a result of such substantial failure if the party receiving such notice begins, within seven 338819v7 JMS RC145-563 20 days of receipt of such notice, to correct its failure to perform and proceeds diligently to • cure such failure within no more than thirty days of receipt thereof; provided, however, that if and to the extent such substantial failure cannot be reasonably cured within such thirty-day period, and if such party has diligently attempted to cure the same and thereafter continues diligently to cure the same, then the cure period provided form herein shall extend up to, but in no case more than, sixty days after the date of receipt of the notice. 7.1.1.2 by ARCHITECT: 7.1.1.2.1 upon seven days' written notice if ARCHITECT believes that ARCHITECT is being requested by OWNER to furnish or perform services contrary to ARCHITECT'S responsibilities as a licensed design professional; or 7.1.1.2.2upon seven days' written notice if the ARCHITECT's services for design or during the construction of the Project are delayed or suspended for more than ninety days for reasons beyond ARCHITECT'S control. 7.1.1.2.3 in the case of termination under this paragraph 7.1.1.2, ARCHITECT shall have no liability to OWNER on account of such termination. 7.1.2 For convenience, by OWNER effective upon the receipt of notice by ARCHITECT. 7.2 Reuse of Documents All documents including Drawings and Specifications provided or furnished by ARCHITECT (or ARCHITECT's Consultants) pursuant to this Agreement are instruments of service in respect of the Project, and ARCHITECT and ARCHITECT's Consultants, as appropriate, shall retain an ownership and property interest therein (including the right of reuse by and at the discretion of ARCHITECT and ARCHITECT's Consultants, as appropriate) whether or not the Project is completed. OWNER may make and retain copies for information and reference in connection with the use and occupancy of the Project by OWNER and others; however, such documents are not intended or represented to be suitable for reuse by OWNER or others on extensions of the Project or on any other project. Any such reuse without written verification or adaptation by ARCHITECT and ARCHITECT's Consultants, as appropriate, for the specific purpose intended will be at OWNER'S sole risk and without liability or legal exposure to ARCHITECT, or to ARCHITECT'S Consultants, and OWNER shall indemnify and hold harmless ARCHITECT and ARCHITECT'S Consultants from all claims, damages, losses and expenses including attorney's fees arising out of or resulting therefrom. Any such verification or adaptation will entitle ARCHITECT to further compensation at rates to be agreed upon by OWNER and ARCHITECT. OWNER understands that any Work Products prepared or provided on electronic media have a limited duration and require use of compatible software and hardware, which may become unavailable over time. • 338819v7 JMS RC145-563 21 7.3 Insurance 7.3.1 ARCHITECT shall procure and maintain insurance. as set forth in 7.3.2, for protection from claims under workers' compensation acts, claims for damages because of bodily injury including personal injury, sickness or disease or death of any and all employees or of any person other than such employees, and from claims or damages because of injury to or destruction of property including loss of use resulting therefrom. ARCHITECT shall list OWNER as an additional insured on ARCHITECT's general liability insurance policy. 7.3.2 7.3.2.1 Workers'. Compensation in Statutory amount and Employer's Liability $1,000,000 Each Occurrence, $1,000,000 Aggregate 7.3.2.2 General Liability in General Aggregate of $2,000,000 with Each Occurrence of $1,000,000 (Bodily Injury and Property Damage) and Products/Completed Operations Aggregate of $2,000,000. 7.3.2..3 Excess Umbrella Liability for Each Occurrence $3,000,000, in the Aggregate $3,000,000 7.3.2.4 Automobile. Liability in Combined Single Limit (Bodily Injury and Property Damage) for Each Accident, $1,000,000 7.3.2.5 Professional Liability in limits of $2,000,000 each incident and $2,000,000 in Aggregate. The foregoing policies shall contain a provision that coverages shall not be canceled or non- renewed until at least 60 days prior written notice has been given to OWNER. Certificates of Insurance showing such coverages to be in force shall be filed with OWNER prior to commencement of work. 7.3.3 ARCHITECT and ARCHITECT'S Consultants shall list OWNER as additional insured on any general liability or property insurance policies carried by ARCHITECT and ARCHITECT'. Consultants -which are applicable to the Project. OWNER shall require Contractor to purchase and maintain general liability and other insurance as specified in the Contract Documents and to list ARCHITECT and ARCHITECT'S Consultants as additional insureds with respect to such liability, property and other insurance purchased and maintained by Contractor. All policies of property insurance shall contain provisions to the effect that ARCHITECT's and ARCHITECT'S Consultants' interests are covered and that in the event of payment of any loss or damage the insurers will have no rights of recovery against any of the insured or additional insureds thereunder. 7.3.4 At any time OWNER may request that ARCHITECT, at OWNER's sole expense, provide additional insurance coverage, different limits or revised deductibles in excess of those specified above. If so requested by OWNER, and if commercially available, ARCHITECT 338819v7 JMS RC145-563 22 shall obtain and shall require ARCHITECT's Consultants to obtain such additional insurance coverage, different limits or revised deductibles, for such periods of time as requested by OWNER, at OWNER'S sole expense, and this Agreement will be supplemented to incorporate these requirements. 7.4 Controlling Law This Agreement is to be governed by the law of the State of Minnesota. 7.5 Successors and Assigns 7.5.1 OWNER and ARCHITECT each is hereby bound and the partners, successors, executors, administrators and legal representatives of OWNER and ARCHITECT (and to the extent permitted by paragraph 7.5.2 the assigns of OWNER and ARCHITECT) are hereby bound to the other party to this Agreement and to the partners, successors, executors, administrators and legal representatives (and said assigns) of such other parry, in respect of all covenants, agreements and obligations of this Agreement. 7.5.2 Neither OWNER nor ARCHITECT may assign, sublet or transfer any rights under or interest (including, but without limitation, moneys that may become due or moneys that are due) in this Agreement without the written consent of the other, except to the extent that any assignment, subletting or transfer is mandated by law or the effect of this limitation may be restricted by law. Unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under this Agreement. 7.5.3 Unless expressly provided otherwise in this Agreement: 7.5.3.1 Nothing in this Agreement shall be construed to create, impose or give rise to any duty owed by ARCHITECT to any Contractor, Subcontractor, Supplier; .other person or entity, or to any surety for or employee of any of them, or give any rights in or benefits under this Agreement to anyone other than OWNER and ARCHITECT. 7.5.3.2 All duties and responsibilities undertaken pursuant to this Agreement will be for the sole and exclusive benefit of OWNER and ARCHITECT and not for the benefit of any other party. The OWNER agrees that the substance of the provisions of this paragraph shall appear in the Contract Documents. 7.6 Good Faith and Fair Dealing; Dispute Resolution 7.6.1 OWNER and ARCHITECT agree that this Agreement incorporates a covenant of good faith and fair dealing. OWNER and ARCHITECT further agree to negotiate in good faith for a period of thirty days from the date of notice of all disputes between them prior to exercising their rights under other provisions of this Agreement, or under law. The parties agree that all disputes remaining unresolved after thirty days will be submitted to a mutually agreeable neutral mediator prior to any dispositive motion or trial in pursuing remedies provided by law. The fee and costs of the mediator shall be apportioned equally between the parties. 338819v7 JMS RC145-563 23 7.6.2 ARCHITECT shall work cooperatively with Orfield Laboratories, Inc. ("Orfield") on the process of incorporating and implementing the Performance Standards into the design. In the event ARCHITECT and Orfield cannot agree on the incorporation or implementation of a Standard, for any reason, ARCHITECT shall promptly notify the City Manager and describe disagreement in writing. The City Manager shall attempt to promptly resolve the disagreement. If the City Manager's decision does not result in a resolution of the disagreement in a manner satisfactory to ARCHITECT, ARCHITECT shall promptly give notice to the City Manager that the matter should be finally decided by the City Council at the earliest opportunity. The City Council shall make the final determination regarding the issue. ARCHITECT shall not stop performance of any of its duties under the Agreement during the period of disagreement or after a City. Council decision with which ARCHITECT does not agree. 7.7 Allocation ofRisks-Indemnification 7.7.1 To the fullest extent permitted by law, ARCHITECT shall indemnify and hold harmless OWNER, OWNER'S officers, directors, partners, employees and agents and .consultants from and against any and all claims, costs, losses and damages (including but not limited to all fees and charges of engineers, architects, attorneys and other professionals and all court or arbitration or other dispute resolution costs) caused by the negligent acts or omissions of ARCHITECT or ARCHITECT's officers, directors, partners, employees, agents and ARCHITECT'S Consultants in the performance and furnishing of ARCHITECT's services under this Agreement. • 7.7.2 To the fullest extent permitted by law, OWNER shall indemnify and hold harmless ARCHITECT and its officers, directors, partners, employees, and agents and ARCHITECT'S Consultants from and against all claims, costs, losses, and damages (including but not limited to all fees and charges of engineers, architects, attorneys and other professionals and all court or arbitration or other dispute resolution costs) caused by, arising out of or relating to the presence, discharge, release, or escape of Asbestos, PCBs, Petroleum, Hazardous Waste, or Radioactive .Material at, on, under or from the Project site. 7.8 Electronic Media 7.8.1 When requested by OWNER, ARCHITECT shall provide relevant analyses, findings and reports in "hard" copy, and in electronic form, where the Project necessitates the use of CADD materials. The parties agree that the "hard" copy shall govern in the case of a discrepancy between the two versions, and shall beheld as the official set of drawings, as signed and sealed. 7.8.2 The OWNER shall be afforded a period of thirty (30) days in which to check the hard copy against the electronic media. In the event that an error or inconsistency is found as a result of this process, the ARCHITECT shall be advised and the inconsistency shall be corrected at no additional cost to the OWNER. Following the expiration of this thirty-day period, the OWNER shall bear all responsibility for the care, custody and control of the electronic media. In addition, the OWNER represents that it shall retain the necessary mechanisms to read the • electronic media, which the OWNER acknowledges to be of only limited duration. All title 338819v7 JMS RC145-563 24 blocks and the engineer's seal, if applicable, shall be removed if and when the OWNER provides the subject CADD drawings/electronic media to any other entity. 'The OWNER agrees not to alter any such information provided by ARCHITECT, nor shall it use such information for any purpose or project other than that intended by this Agreement. 7.9 Notices Any notice required under this Agreement will be in writing, addressed to the appropriate party at the address which appears on the first page of this Agreement (as modified in writing from time to time by such party) and given personally, by registered or certified mail, return receipt requested, by facsimile, or by a nationally recognized overnight courier service. All notices shall be effective upon the date of receipt. 7.10 Survival All express representations, indemnifications or limitations of liability made in or given in this Agreement will survive the completion of all services of ARCHITECT under this Agreement or the termination of this Agreement for any reason. Severability Any provision or part of the Agreement held to be void or unenforceable under any law or regulation shall be deemed stricken, and all remaining provisions shall continue to be valid and binding upon OWNER and ARCHITECT, who agree that. the Agreement shall be reformed to replace such stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provision. SECTION 8 -EXHIBITS AND APPENDICES 8.1 This Agreement is subject to the provisions of the following Exhibits which are attached to and made a part of the Agreement: 8.1.1 Exhibit A, "Work Order Form", consisting of one page. 8.1.2 Exhibit B, "Notice of Acceptability of Work", consisting of two pages. 8.1.3 Exhibit C, "Progress Report Form", consisting of 1 page. 8.1.4 Exhibit D, "Invoice Standards", consisting of 1 page. 8.1.5 Exhibit E, "Invoice Cover Sheet", consisting of 1 page. 8.1.6 Exhibit F, "Travel Regulations", consisting of I page. 8.1.7 Appendix A (City Hall Building Performance Standards Consulting Agreement) • 338819v7 JMS RC145-563 25 8.2 This Agreement (consisting of pages 1 to 20 inclusive and the Exhibits identified above) • constitutes the entire agreement between OWNER and ARCHITECT and supersedes all prior written or oral understandings. This Agreement may only be amended, supplemented, modified or canceled by a duly executed written instrument. IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective as of the date first above written. OWNER: CITY OF RICHFIELD, MINNESOTA By: Its: Mayor By: Its: City Manager Dated: _, 2008 r~ • 338819v7 JMS RC145-563 ARCHITECT: WOLD ARCHITECTS AND ENGINEERS By: Its: Dated: 2008 26 This is Exhibit A, consisting of _ pages, referred to • in the Agreement between OWNER and ARCHITECT for Professional Services. Initials: OWNER ARCHITECT Work Order Form WORK ORDER NO. _ Authorization to proceed and site-specific scope of services Project Location: We transmit the following information for your use: We hereby authorize you to proceed with the following phases of services for the above- referenced Project and location in accordance with the agreement between OWNER and ARCHITECT dated Payment shall be on the basis of (select from the following): ^ Cost Plus Fee: Direct Salary Cost times audited overhead plus fee of _ percent and reimbursable expenses. ^ Cost Plus Fixed Fee: As for Cost Plus Fee, however total Fee shall not exceed $ ^ Lump Sum: One sum payable by percent of completion of the Services (plus reimbursable expenses). ^ Cost Times a Factor: Direct Salary Cost times a factor of plus reimbursable expenses. ^ Standard Hourly Billing Rates: Hourly rates plus reimbursable expenses. The Not to Exceed Limit for this Work Order is: A Construction Cost Limit of $ is agreed upon between OWNER and ARCHITECT for this Project. 338819v7 JMS RC145-563 27 ARCHITECT: WOLD ARCHITECTS AND ENGINEERS Signed: Its: Signed: Its: Dated: OWNER: RICHFIELD Signed: Its: Signed: Dated: Rev. December 1 S, 1999 • 338819v7 JMS RC145-563 2$ • This is Exhibit B, consisting of 2 pages, referred to in the Agreement Between OWNER and ARCHITECT for Professional Services Initials: OWNER ARCHITECT Notice of Acceptability of Work To: NOTICE OF ACCEPTABILITY OF WORK OWNER OWNER's Contract No, CONTRACTOR CONSTRUCTION CONTRACT DATE: ARCHITECT: WOLD ARCHITECTS AND ENGINEERS OWNER And To CONTRACTOR The undersigned hereby gives notice to the above OWNER and CONTRACTOR that the completed Work furnished and performed by CONTRACTOR under the above Contract is acceptable expressly subject to the provisions of the above Contract and the terms and conditions set forth on the reverse side hereof. ARCHITECT . Dated: 338819v7 JMS RC145-563 29 • CONDITIONS OF NOTICE OF ACCEPTABILITY OF WORK The Notice on the front side of this paper is expressly made subject to the following terms and conditions to which all persons who receive said Notice and rely thereon agree: 1. Said Notice is given with the skill and care ordinarily used by members of the architectural profession practicing under similar conditions at the same time and in the same locality. 2. Said Notice reflects and is an expression of the professional judgment of ARCHITECT 3. Said Notice is given as to the best of ARCHITECT's knowledge, information and belief. 4. Said Notice is based entirely on and expressly limited by the scope of services ARCHITECT has been employed by OWNER to perform or furnish during construction of the Project (including observation of the Work) under ARCHITECT's Agreement with OWNER and under the Contract referenced on the reverse hereof, and applies only to facts that are within ARCHITECT's knowledge or could reasonably have been ascertained by ARCHITECT as a result of carrying out the responsibilities specifically assigned to ARCHITECT under ARCHITECT's Agreement with OWNER and the Contract referenced on the reverse hereof. 5. Said Notice is not a guarantee or warranty of CONTRACTOR's performance • under the above-referenced Contract referenced on the reverse hereof nor an assumption of responsibility for any failure of Contractor to furnish or perform the Work hereunder in accordance with 'the Contract Documents. 338819v7 JMS RC145-563 30 This is Exhibit C, consisting of pages, referred to ~ in the Agreement Between OWNER and ARCHITECT for Professional Services. Initials: OWNER ARCHITECT Progress Report Form To be provided by Owner • • 338819v7 JMS RC145-563 31 This is Exhibit D, consisting of 2 pages, referred to in the Agreement Between ~ OWNER and ARCHITECT for Professional Services. Initials: OWNER ARCHITECT Invoice Standards To be provided by Owner • 338819v7 JMS RC145-563 32 tr .~, ~w This is Exhibit E, consisting of 2 pages, referred to in the Agreement Between OWNER and ARCHITECT for Professional Services. Initials: OWNER ARCHITECT Invoice Cover Sheet Invoices shall contain the following control information: A. City's Project Number B. Invoice Number, sequential C. Signature request on each invoice attesting to services and .costs as new and no previous payment received. D. A copy of each invoice is to be sent to the City's Project Manager for review and payment approval. Cover Sheet form to be provided by Owner • • 338819v7 JMS RC145-563 33 • Travel Regulations This is Exhibit F, consisting of 2 pages, referred to in the Agreement Between OWNER and ARCHITECT for Professional Services. Initials: OWNER ARCHITECT To be~rovided by Owner 338819v7 JMS RC145-563 34 APPENDIX A CITY BALL BUILDING PERFORMANCE STANDARDS CONSULTING AGREEMENT THIS AGREEMENT is made and entered into this _ day of November, 2008, by and between the City of Richfield, a Minnesota municipal corporation ("City") and Orfield Laboratories, Inc., a Minnesota corporation ("Orfield"). RECITALS A. The parties acknowledge that without the requirement of specific building performance standards, building projects may have failures related to Daylighting, Lighting, Acoustics, Thermal Comfort and Indoor Air Quality (collectively "Standards") and that the failure of building design and construction to meet Standards is the source of occupant complaints. about buildings. B. Orfield has extensive experience in providing custom programs to develop and define Standards and has developed a program to provide .Standards for the City's planned design and construction of a City Hall ("City Hall"). Orfield will further provide updates to these Standards every year at a limited cost to the City. C. O~eld further represents that applying a building performance program regarding Standards will have little impact on the cost of the City Hall, but a significant impact on the performance of and user satisfaction with the City Hall, and that when combined with apre- and post-occupancy study program, the City Hall can achieve performance targets regarding Standards and measure the benefit of those targets to the users of City Hall. D. The parties also seek to establish a set of standardized measurements that will confirm that the Standards have been incorporated into the design and construction of City Hall. AGREEMENT NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which the parties acknowledge, the parties agree as follows: 1. The Recitals are made part of this Agreement. 2. Orfield shall develop Standards for City Hall and the components comprising Standards, Acoustics, Daylighting, Lighting, Thermal Comfort, and Indoor Air Quality, will be further defined in Orfield report, required under subparagraph 4A. Orfield shall provide specific design approaches that are useful in achieving the Standards and will include specific test and measurement criteria that Orfield will use to confirm that the Standards are met and maintained. Orfield will also include suggested remedies to the City for failure of the designer and/or contractor to achieve the Standards. 338819v7 JMS RC145-563 3. Orfield will provide consulting support to the architect to assist it in designing ~ City Hall to incorporate and implement the Standards. This includes design consultation to the architect in matters of Acoustics, Daylighting, and Lighting. Orfield will also assist the architect in the incorporation of Thermal Comfort and Indoor Air Quality in the City Hall design. 4. The services described in paragraphs 2 and 3 above shall be delivered in accordance with the following: A. For a flat fee of $27,500 payable upon satisfactory completion, Orfield shall prepare a report of approximately 50 to 60 pages, within three weeks of the date of this Agreement. The report will detail the Standards, include examples of their correct application (where possible), testing of Standards, and recommended City remedies or penalties to the architect and/or contractor for their failure to meet Standards ("Task 1"). B. For consulting services at Orfield's hourly rate as set forth in Exhibit _ to this Agreement, approved by the City Manager, billed monthly and not to exceed $100,000, Orfield shall provide consulting assistance to the architect and/or contractor to comply with the Standards. These consulting services may include, but are not necessarily limited to, preparation of memoranda, discussions, teleconferences, drawings and sketches to aid in the required compliance. Orfield shall keep the City Manager concurrently apprised of all consulting Orfield carries out ("Task 2"). C. For the flat fee of $20,000 payable upon satisfactory completion, performance commissioning to confirm that the completed City Hall meets the Standards ("Task 3"). Task 3 shall include a written report of the commissioning. 5. The City shall have the right to cancel this Agreement and terminate the services of Orfield for convenience upon seven (7) days written notice to Orfield. Upon receipt of such notice, Orfield shall submit to the City the total of its hours worked on Task(s) through the date of the notice and the City shall compensate Orfield for its work based on reasonable invoices and expenses submitted toward the Task(s) to the time of notice of termination. 6. The City shall have the right to terminate Orfield for cause upon seven (7) days written notice. For cause shall include any material failure of Orfield to timely and satisfactorily carry out the services to be performed under this Agreement. In the event of a termination for cause, the parties agree to promptly retain amutually-acceptable mediator if they are unable to resolve the appropriate compensation for services rendered to the date of termination. The parties retain all rights in law or in equity if they are unable to resolve any dispute arising out of this Agreement. 7. All expenses reasonable and necessary in the timely performance of Orfield's duties under this Agreement will be billed to the City and paid at cost. Orfield shall charge cents a copy for standard 8 %2" by 11" copies and for reproductions of special size. Orfield shall notify the City for pre-approval of anticipated expenses not ordinarily incurred in the course of the duties described in the Agreement, including but not limited to, use of special equipment, 338819v7 JMS RC 145-563 travel, overnight accommodations or meals. No Orfield travel within .the Twin Cities' metropolitan area shall be reimbursed as an expense. 8. The City shall pay Orfield on invoices received in accordance with the Minnesota Municipal Prompt Payment Act. 9. Orfield does not provide architectural or professional engineering services and no such services are contemplated by this Agreement. The specific areas comprising the Standards; Acoustics, Daylighting, Lighting, Thermal Comfort and Indoor Air Quality, are not recognized under ariy professional registration practice. 10. .This Agreement does not include the application of Standards to the City Council Chambers at the City Hall. If the City desires Orfield's services with respect to City Council Chambers, the City shall notify Orfield which will provide a written proposal for such services. 11. Services related to environmental noise are not part of this .Agreement. Upon City request, Orfield will provide a written proposal for the measurement and assessment of City Hall to determine if an environmental response to noise and/or vibration is necessary for the City Hall. 12. Orfield agrees that in the performance of its duties under the Agreement, Orfield shall work through the City Manager as the City's primary representative and shall also work • with the City's architect and engineer, Wold Architects and Engineers, a Minnesota corporation ("Wold"). Orfield is providing no direction, control or supervision of a) Wold or engineering ~ professionals that may be retained by Wold or the City, or b) the contractor(s) or its .subcontractors constructing the City Hall. 13. Orfield shall work cooperatively with Wold in the process of incorporating and implementing the Standards into the design. In the event Orfield and Wold cannot agree on any aspect of the .incorporation or implementation of a Standard, for any reason, Orfield shall promptly notify the City Manager and describe disagreement in writing. The City Manager shall attempt to promptly resolve the disagreement. If the City Manager's decision does not result in a resolution of the disagreement in a manner satisfactory to Orfield, Orfield shall promptly give notice to the City Manager that the matter should be finally decided by the City Council at the earliest opportunity. The City Council shall make the final determination regarding the presented issue. Orfield shall not stop performance of any of its duties under the Agreement during the period of disagreement or after a City Council decision with which Orfield does not agree. 14. The process carried out by Orfield contemplated in this Agreement employs analysis methods that Orfield has developed previously and uses on an ongoing basis for evaluation and task performance analysis. Orfield will use these methods to prepare a specific analysis plan for the City Hall. The City acknowledges that it has no right to use any methods that are proprietary to Orfield other than for the City Hall Project and that such methods, if . property rights to them exist, remain the sole property of Orfield. Orfield hereby grants to the City the right to use such. analysis methods for purposes of development and implementation of 338819v7 JMS RC145-563 Standards for the City Hall. In the event the City terminates services > of Orfield, the City shall have the right to .use. these analysis methods for the sole purpose of completing the City Hall ~ Project. 15. Orfield's design work shall require a set of documents drawn to conventional scale (1/4, 1/8, 1/16) that are to be provided by the City at no cost to Orfield. The provided documents shall be in the same scale and accompanying specification and Orfield shall be entitled to rely on their accuracy, unless otherwise provided in writing by the City. The City shall promptly provide to Orfield, as they are available, the following documents: A. Architectural floor plan; B. Interior furnishings/design plan; C. Reflected ceiling plan; D. HVAC plan; E. Interior wall elevations; F. Architectural specification set; G. Lighting specifications. Orfield shall make further requests for information to the City in writing as may be necessary and City shall respond within a reasonable time. • 16. Orfield shall indemnify, defend and hold the City harmless from any and all ~ actions arising out of O~eld's negligence or alleged negligence in the performance of the duties set forth in this Agreement. Upon receipt of any third party claim against the City due to Orfield's alleged negligence, the City shall timely tender the defense to Orfield which shall defend the City to the fullest extent permitted by law and shall be responsible for all attorneys' fees and costs of the action. If Orfield declines to defend the City, Orfield shall be responsible for City's reasonable costs and attorneys' fees incurred in defense of Orfield actions that are adjudged to be negligent and shall allocate such fees and costs proportionally. Orfield's liability to the City shall not exceed the claim limits of Orfield's general liability policy, or other applicable policy, which Orfield agrees to keep in force during the claims period. 17. Orfield shall provide to the City evidence of insurance, and coverage limits, as follows and. shall list the City as an additional insured on Orfield's general liability insurance policy: Workers' comp; General liability; Umbrella liability; Automobile liability; Professional liability. • 338819v7 JMS RC145-563 • Orfield shall maintain such coverages as necessary during the claims period and shall ~ provide City with athirty-day (30) written notice prior to any cancellation of insurance during the claims period. 18. This Agreement is subject to all applicable laws and ordinances and shall be governed by Minnesota law. ORFIELD LABORATORIES, INC. By Steven J. Orfield Its President CITY OF RICHFIELD By Debbie Goettel Its Mayor CITY OF RICHFEILD By Steve Devich • Its City Manager 338819v7 JMS RC145-563 • AGENDA SECTION: AGENDA ITEM # REPORT # STAFF REPORT CITY COUNCIL MEETING NOVEMBER 25, 2008 RESOLUTION 15 285 REPORT PREPARED BY: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Summary review of City Manager annual performance evaluation and consideration of resolution ad'ustin com ensation for 2009. I. RECOMMENDED ACTION: By Motion: • Adopt a resolution amending Section 5. Salary and Section 11, Subsection C. Disability, Health and Life Insurance of the employment agreement between the City of Richfield and City Manager Steven L. Devich. II. BACKGROUND The City Council has conducted a performance review of the City Manager for 2008 and must now, per State Statute, make a summary report of the outcome of that - evaluation. In addition, the City Council has reviewed the compensation of the City Manager and has concluded that an adjustment should be made. As part of the evaluation process, the City Council may want to review the goal accomplishments of the City for 2008. III. BASIS OF RECOMMENDATION A. POLICY • The City Manager is given an .evaluation by the City Council each year as part of the City Manager's contract. 1125CityManagerCom pensation STEVEN L. DEVICH, CITY MANGER • As part of the evaluation process, a review of the City Manager's compensation package is also performed each year. • As compensation comparisons, salaries of City Managers in comparable ~ cities are considered, as is the base salary structure adjustments of other City employees. - B. CRITICAL ISSUES • City Manager Devich's annual performance evaluation has previously, been scheduled to be conducted in January or early February of each year. However, due to the 2008 municipal election, the City Council will change at the end of December and two Council Members that he reports to would no longer be on the City Council to do an evaluation in 2009. Thus, the evaluation has been moved to a date in 2008 when all five of the. current City Council are available. • Over the past 15 years, the evaluations of the past two City Managers have typically been done in either October, November or December of each year. • The Open Enrollment period for all cities in the Metro LOGIS group is closed and must be submitted to LOGIS by the last week in November. Any changes the City Manager may want to make must be done now for 2009. Since the original City Manager contract was written, new alternatives in health coverage have been created through LOGIS that the City Manager may want to utilize. While there would be no increase in cost to the City for these options, the language of the contract would have to be modified to allow for these options as well C. FINANCIAL • The City Manager requested that the City Council consider a salary adjustment considering comparable City Manager salary data. • Any salary adjustment granted by the City Council as a result of this evaluation would not be effective until February 2009. D. LEGAL • The City Manger's contract with the City requires that an annual performance evaluation be conducted. IV. ALTERNATIVE RECOMMENDATION~S~ • The City Council may defer the compensation portion of this review to a future meeting. However, action on the health insurance language would be critical to allow for flexibility for selection of health insurance for 2009: V. ATTACHMENTS • Resolution. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None anticipated. RESOLUTION NO. RESOLUTION AMENDING THE EMPLOYMENT AGREEMENT '~ BETWEEN THE CITY OF RICHFIELD AND STEVEN L. DEVICH, CITY MANAGER NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows: The following section of the Employment Agreement between the City of Richfield, Minnesota and Steven. L. Devich, City Manager, dated February 2005 is amended as follows: Section 5. Salary. Employer agrees to increase the City Manager's total base annual salary of $125,548.80 (including $3,500 of deferred compensation annually) to $ (including $3,500 of deferred compensation annually), effective February 24, 2009 payable in installments at the time as other employees of the employer are paid. Section 11, Disability, Health and Life Insurance. C. nramii imc tharann Employer agrees to make available to Employee those plans for hospitalization surgical comprehensive medical and dental insurance providing individual and dependent coverage ("Insurance Plans") that are made available to any group of persons also employed by Employer Employee may annually (or with such lesser frequency as may be required by applicable plans) select an Insurance Plan in which the Employee will participate The Employer is obligated to pay 100 percent of the premium for the Insurance Plan selected by the Employee. If the Employee selects an Insurance Plan that includes a Health Savings Account ("HSA"), then, in addition to the Insurance Plan premium the Employer shall pay into the Employee's HSA the lesser of (I) the deductible required by the Insurance Plan and HSA or (ii) the difference between the premium for the selected Insurance Plan and the highest premium that would have been paid by the Employer if the Employee had selected any other Insurance Plan. Approved by the City Council of the City of Richfield this 25th day of November, 2008. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk