07-13-2004 Agenda
CITY OF RICHFIELD, MINNESOTA
REGULAR CITY COUNCIL MEETING
TUESDAY, JULY 13, 2004
REGULAR CITY COUNCIL MEETING
COUNCIL CHAMBERS
6700 PORTLAND AVENUE
6:30 P.M.
AGENDA
INTRODUCTORY PROCEEDINGS
Call to order
Roll call
Open forum (15 minutes maximum)
Each speaker is to keep their comment period to three minutes to allow sufficient time for
others. Comments are to be an opporfunity to address the Council on items not on the agenda.
Individuals who wish fo address the Council must have registered prior to the meeting.
Notes:
Pledge of Allegiance
Approval of minutes of (1) Special City Council Meeting of June 15, 2004; (2) Special City
Council Meeting of June 15, 2004; (3) Special City Council Worksession of June 22, 2004;
(4) Regular City Council Meeting of June 22, 2004; and (5) Special City Council Meeting of
June 24, 2004
PRESENTATIONS
1. Annual meeting with Community Services Commission
2. Presentation of Government Finance Officers Association Distinguished Budget
Presentation Award to Finance Manager Chris Regis
COUNCIL DISCUSSION
3. Council discussion
• Hats Off To Hometown Hits
Notes:
CITY MANAGER'S REPORT
4. City Manager's report
Notes:
AGENDA APPROVAL
5. Council approval of agenda
CONSENT CALENDAR
6. 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 first reading of City Code amendments repealing
Section 1200, 1210, 1215 and 1225 in their entirety and adding new Section 1202
which amends and adopts new sections relating to sale and consumption of alcoholic
beverages and schedule second reading for September 16, 2004 S.R. No. 115
B. Consideration of approval of resolution modifying Health Care Savings Plan for
eligible Management employees S.R. No. 116
C. Consideration of approval of resolution amending procedures for private activity
revenue bond financing S.R. No. 117
D. Consideration of approval'of resolution establishing just compensation and
authorizing purchase of apartment building at 6520 Cedar Avenue; Airport Noise
Acquisition Program S.R. No. 118
E. Consideration of approval of resolution authorizing subdivision waiver for 6712
Pleasant Avenue S.R: No. 119
F. Consideration of approval of bid minutes and tabulation and award of contract to
UNICORP for construction of enclosure of Well No. 7 in amount of $259,800 S.R.
No. 120
Notes:
7. Consideration of item(s), if any, removed from Consent Calendar
Notes:
RESOLUTIONS
8. Disciplinary hearing and consideration of resolution regarding civil enforcement for
tobacco establishment in Richfield that recently underwent tobacco compliance checks
conducted by Richfield Public Safety staff and failed by selling tobacco to underage
youth
Staff Report No. 121
Notes:
9. Consideration of resolution approving 2004-2005 labor agreement between City of
Richfield and Police Supervisors Law Enforcement Labor Services Local 162
Staff Report No. 122
Notes:
OTHER BUSINESS
10. 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, lndividuals who wish to address the Council must have registered prior to the
meeting,
Notes:
11. Adjournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must be
made at least 96 hours in advance to the Administrative Services Director at 612-861-9702.
AGENDA SECTION:
AGENDA ITEM #
REPORT #
~' STAFF REPORT
CITY COUNCIL MEETING
JULY 13, 2004
RESOLUTION
122
Related to:
CITY COUNCIL GOAL(S~ NO. 29 AND/OR RICHFIELD 2020 GOAL(S~ NO NA
REPORT PREPARED BY: PAM DMYTRENKO
ASSISTANT TO THE CITY MGR
NAME, TITLE
COUNCIL PRESENTER:
RDEEV~WMENT DIRECTOR ~~ / \ ' ~ \ /~ /~
REVIEWED BY CITY
MANAGER: ~Y.
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a resolution approving the contract with the Police Supervisors LELS Local
162 for the contract eriod Janua 1, 2004 throu h December 31, 2005.
I. RECOMMENDED ACTION:
By Motion: Adopt the resolution approving the provisions of the 2004-
05 labor agreement with the Police Supervisors LELS Local 162
bargaining unit and authorize the City Manager to execute the
aareement.
II. BACKGROUND
City staff has completed labor negotiations with the Police Supervisors LELS Local
162~(Union). After negotiations broke down, a mediation session. was held and the
agreement was subsequently accepted by a majority of the union members. The
provisions of the two-year contract, for calendar years 2004 and 2005, cover all
employees in this Union. LELS Local 162 represents Police Supervisors -which
consists of 12 positions: 8 Sergeants, 1 Captain and 3 Lieutenants.
0511 Police contract2004
The tentatively approved settlement includes the following changes:
1. Wages
A 3% across-the-board wage increase, effective January 1, 2004, for contract year
2004 and a re-opener of this provision for contract year 2005.
2. Health Insurance
A $50 increase to the Employer health insurance contribution for contract year 2004
which provides full coverage to single Employee, $565 per month for Employee plus
spouse or Employee plus child(ren) coverage, and $580 per month for Employee
plus family. The contract calls for a re-opener of this provision in 2005.
3. Vacation Leave
Effective January 1, 2005, an additional 8 hours of vacation leave for employees
with 25 years or more of service to the City.
4. Overtime Pay
An increase in overtime pay from a minimum of 2 hours to 3 hours, effective July 1,
2004.
5. Clothing Allowance
An increase of $20 in the clothing allowance to $660 in 2004 and an increase of $25
in 2005 to $685.
III. BASIS OF RECOMMENDATION
A. POLICY
• The City .has met and negotiated in good faith with the Union and its
representatives and is bound under the Public Employer's Labor
Relations Act to meet and bargain over the terms and conditions of
employment.
• The 2004-05 proposed settlement is the fourth union contract settled
for 2004 and is identical in wages and health insurance provisions to
non-union City employees, Local 49, 911 Dispatchers, and Police
Officers & Detectives. The contract provisions are also well within the
range for other comparable bargaining groups in similar metro cities.
B. CRITICAL ISSUES
• In order to allow the City's accounting personnel to modify payroll
records in a timely manner for 2004 wages and benefits, it is
recommended that the City Council act on July 13, 2004 to adopt the
attached resolution providing for contract changes, effective January
1, 2004.
C. FINANCIAL
• 3% wage increase.
• $50 increase in Employer contribution towards health insurance
coverage.
• $20 increase in clothing allowance for 2004 and $25 increase in 2005.
• An additional 8 hours of vacation leave for employees with 25 years or
more of service. Currently, four employees qualify for this benefit.
• The increase in overtime pay from a 2 hour minimum to 3 hours is
anticipated to cost approximately $1200 for 2004.
D. LEGAL
• If the terms of this agreement are not approved, further negotiation
and/or mediation will be necessary.
IV. t-1LTERNATNE RECOMMENDATION~S~
• Do not approve the terms of this agreement and prepare for further
negotiation and/or mediation.
• Defer discussion to another date.
V. ATTACHMENTS
• Resolution.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
RESOLUTION NO.
RESOLUTION APPROVING LABOR AGREEMENT BETWEEN THE
CITY OF RICHFIELD AND
LAW ENFORCEMENT LABOR SERVICES (EELS), LOCAL 162
BARGAINING UNIT FOR THE YEAR 2004
WHEREAS, the City Manager and the Richfield Police Supervisors EELS Local 162
have reached an understanding concerning conditions of employment for years 2004 and
2005; and
WHEREAS, it would be inappropriate to penalize EELS Local 162 members who
have negotiated in good faith; and
WHEREAS, the City Ordinance requires that contracts between the City and the
exclusive representative of the employees in an appropriate bargaining unit shall be
completed by Council resolution.
NOW, THEREFORE, -BE IT RESOLVED that the City Council does hereby approve
the Labor Agreement between the City of Richfield and EELS Local 162 Bargaining Unit for
years 2004 and 2005, under the provisions of the Labor Agreement to be implemented,
effective January 1, 2004 and authorize the City Manager to execute the contract.
Adopted by the City Council of the City of Richfield, Minnesota this 13th day of July,
2004.
Martin J. Kirsch Mayor
ATTEST:
Nancy Gibbs City Clerk
AGENDA SECTION: RESOLUTION
AGENDA ITEM # $
REPORT # 1 ~ 1
STAFF REPORT
CITY COUNCIL MEETING
JULY 13, 2004
Related to:
CITY COUNCIL GOAL(S~ NO
N/A AND/OR RICHFIELD 2020 GOAL(S~ NO
N/A
REPORT PREPARED BY:
COUNCIL PRESENTER:
DEPARTMENT DIRECTOR
REVIEW:
REVIEWED BY CITY
MANAGER:
BETSY OSBORN, ADMINISTRATNE
SUPPORT SERVICES MANAGER
NAME, TITLE
A
,~ ` ~ !2~
f SIGNA RE
ITEM FOR COUNCIL CONSIDERATION:
Council consideration of a disciplinary hearing and resolutions regarding civil enforcement for
establishments in Richfield that underwent tobacco compliance checks that were conducted by
Richfield Public Safet staff, and failed b sellin tobacco to undera a outh.
I. RECOMMENDED ACTION:
By Motion: Approve the attached resolution suspending the license
to sell tobacco for seven (7) consecutive days for the third time
violating establishment; levying a fine against the establishment in
the amount of $250 for the third violation; and proposing that the
Public Safety Director select the seven consecutive days that the
license will be suspended.
II. BACKGROUND
On May 19 and 25, 2004, Richfield Public Safety staff conducted tobacco
compliance checks at all of the establishments in Richfield that sell tobacco. They
0713 Tobacco Compliance Violators
were assisted by three underage youth that were all 17 years of age. These
compliance checks were the first checks conducted in 2004.
On May 19, 2004, the police division made arrangements for the minors to enter the
establishments with undercover police officers. In one instance, tobacco was sold
to underage youth.
The business that sold tobacco to underage youth on May 19, 2004 is:
• Richfield Amoco - 7544 Lyndale Avenue South
Due to the fact that this is a second offense for Richfield Amoco, a suspension is
not required nor do they need to appear before the City Council. They will,
however, be charged a fine.
On May 25, 2004, the police division made arrangements for the minors to enter the
establishments with undercover police officers. In four instances., tobacco was sold
to underage youth.
The businesses that sold tobacco to an underage youth on May 25, 2004 are:
• Gas Plus - 7744 12th Avenue South
• Portland Amoco - 6545 Portland Avenue South
• Shortstop Superette - 7034 Cedar Avenue South
• T&T Automotive - 601 East 66th Street
Due to the fact that this is a first offense for Gas Plus, Shortstop Superette and T&T
Automotive, a suspension is not required nor do they need to appear before the City
Council. They-will, however, be charged a fine.
This is a third offense for Portland Amoco. A third offense carries a suspension of
seven (7) days of their license to sell tobacco and a fine of $250.
At no time did any of the minors use the tobacco products. The youth presented
their ID's, if requested, and at no time attempted to convince anyone that they were
of legal age. Establishments were visited at various times, busy or not busy, in an
effort to determine if busy times produced more successful buys. It doesn't appear
to have made a difference at either time.
After each attempt, successful or unsuccessful, the officers identified themselves to
the .clerks and issued a citation if they failed. If the underage youth was
unsuccessful in purchasing tobacco, the clerk was congratulated by officers. The
employee that sold tobacco will be charged criminally in court. The action being
taken today is for civil enforcement and penalties against the businesses that hold a
license to sell tobacco within the City.
The fines being recommended at this time are intended to recover 100% of the
costs for conducting the compliance checks and to penalize the businesses
punitively. Compliance checks will continue to occur during 2004. It is also
recommended that 15% of the punitive fines be designated for future tobacco and
alcohol education efforts within the community.
III. BASIS OF RECOMMENDATION
A. POLICY
• Richfield City Code Section 1146 specifies certain improper conduct of
tobacco license holders and delineates the progressive discipline that
can be expected when violations occur, such as the sale of tobacco to
minors.
• Staff recommends that the City Council suspend the license to sell
tobacco for seven (7) consecutive days for the third time violating
establishment; levying a fine against the establishment. in the amount
of $250. Staff further recommends that the Public Safety Director
select the seven (7) consecutive days that the license will be
suspended.
B. CRITICAL ISSUES
• It is a violation of Minnesota State Statute and City ordinance to sell
tobacco to underage youth.
• Citizen representatives of the Richfield Advisory Board of Health
support severe actions against establishments in an effort to protect
the youth of the community and to send a message that youth and
their well-being are a high priority in this City.
C. FINANCIAL
• All costs of conducting compliance checks will be reimbursed through
the fines that are levied against an establishment for failing a tobacco
compliance check.
• Furthermore, 15% of the punitive fines are designated for future
tobacco and alcohol educational efforts within the community.
D. LEGAL
• N/A
IV. ALTERNATNE RECOMMENDATION(S)
• I he Council could decide to take no action against the establishments for the
sale of tobacco to a minor,. which would result in no disciplinary actions
against the establishments. This would, however, send a message to the
community that children and their well being are not a priority in Richfield.
• The council may consider taking. more or less severe action against the
establishments that sold tobacco to underage youth; however; that would
deviate from the guidelines set for progressive discipline in City Code 1146.
V. ATTACHMENTS
• Resolution for Portland Amoco
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• A representative from the Portland Amoco is expected to be in attendance at
the meeting. They have been notified in writing of this requirement.
RESOLUTION NO.
RESOLUTION SUSPENDING THE TOBACCO LICENSE FOR
PORTLAND AMOCO, 6545 PORTLAND, AND IMPOSING A CIVIL PENALTY FOR
THIRD TIME TOBACCO COMPLIANCE FAILURE
WHEREAS, Portland Amoco ("Licensee") holds a license to sell tobacco products
within the City of Richfield; and
WHEREAS, on May 25, 2004, the City of Richfield Public Safety Department
conducted a compliance check of the Licensee's establishment, and during the compliance
check, an employee of the Licensee sold tobacco to a minor; and
WHEREAS, this is their third failed tobacco compliance check as a result of the fact
that it is within 24 months of their second offense; and
WHEREAS, the Licensee appeared before the Richfield City Council on July 13,
2004 and admitted the violation and stipulated to the suspension and penalty imposed by
this resolution.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield
as follows:
1. The Licensee's tobacco license is hereby suspended for a period of seven (7)
consecutive days, commencing on a date to be determined by the Public Safety
Director, but to take place within 30 days of their Council appearance.
2. A civil penalty of $250 is hereby imposed. On or before August 13, 2004, the Licensee
shall deliver a check or money order payable to the City of Richfield in the amount of
$250.
3. Licensee must meet with the Director of Public Safety by August 13, 2004 to present an
action plan to ensure future compliance.
Passed by the City Council of the City of Richfield this 13th day of July 2004.
ATTEST:
Martin J. Kirsch, Mayor
Nancy Gibbs, City Clerk
AGENDA SECTION: CONSENT
AGENDA ITEM # F
REPORT # 120
STAFF REPORT
CITY COUNCIL MEETING
JULY 13, 2004
Related to:
CITY COUNCIL GOAL(S~ NO. N/A
REPORT PREPARED BY:
COUNCIL PRESENTER:
DEPARTMENT DIRECTOR
REVIEW:
REVIEWED BY CITY
MANAGER:
AND/OR RICHFIELD 2020 GOAL(S~ NO
ROBERT HINTGEN, ACTING
UTILITIES SUPERINTENDENT
NAME, TITLE
SIGNATURE
10
ITEM FOR COUNCIL CONSIDERATION:
Consideration of award of contract to UNICORP in the amount of $259;800 for the construction
of the Enclosure. of Well No. 7
I. RECOMMENDED ACTION:
By Motion: Approve the bid minutes and tabulation and award
contract to the low bidder, UNICORP in the amount of $259,800-for the
construction of the Enclosure of Well No. 7.
III. BACKGROUND I
The Water Treatment Plant was built in the early 1960's and Well #7 was added in
the late 1970's. Since then no real improvements have been made to Well #7,
since 9/11, safety and security issues have been brought to the forefront.
• Safety: The current wellhouse does not have a roof on it and is exposed to the
elements. Therefore, this well house cannot be used in the winter months and is
considered a liability.
0713we117
• Security: The Federal Government has mandated the "Bioterrism Act of 2002"
which states all water sources be inaccessible to all outside the establishment.
Currently as stated before this well house is exposed to the elements and can
possibly be accessed with very little or no resistance.
• Structural: The current state of the existing shell is beyond repairs, the
deterioration of the walls will not support a new roof thus replacing the entire
structure is the best option.
The City hired a consultant, Bolten & Menk, Inc., to prepare plans and specification
for the Enclosure of Well #7.
III. BASIS OF RECOMMENDATION
A. POLICY
• UNICORP was the lowest responsible bidder and is an established
contractor that meets all of the City's requirements.
B. CRITICAL ISSUES
• Well 7 Enclosure is necessary for.. protection against potential safety
problems but ultimately the security of source water for the City of
Richfield. Approval at the July .13th Council meeting will facilitate the
process to begin construction.
C. FINANCIAL
• The Water department budgeted $105,000 in the 2004 budget for the
construction of Well 7. Due to some unexpected findings during the
consultation process the overall price will be higher to correct the
findings. The water department will fund 100% of the invoiced
amount, thus this will have no impact on the general fund. The 2004
revised budget will reflect the increased price.
D. LEGAL
• All contracts or purchases over $50,000 require sealed bids to be
solicited buy public notice.
• The bid opening, held on June 29, 2004 was in accordance with legal
requirements.
IV. ALTERNATIVE RECOMMENDATION~S~
• Council could reject all bids and instruct staff to re-advertise. It is the opinion
of staff that the bid submitted by UNICORP is reasonable and responsible.
V. ATTACHMENTS
• Bid minutes and tabulation.
Bid evaluation from the City's Consultant.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
CITY OF RICHFIELD, MINNESOTA
Bid Opening
June 29, 2004
10:00 am
2004 Well 7 Enclosure
Bid No. 04-06
Pursuant to requirements of Resolution No. 1015, a meeting of the Administrative Staff
was called by Deborah Guiher, Deputy City Clerk, who announced that the purpose of
the meeting was to receive, open and read aloud, bids for 2004 Well 7 Enclosure, bid
no. 04-06, as advertised in the official newspaper on June 17, 2004 and the
Construction Bulletin on June 18, 2004.
Present: Deborah Guiher, Deputy City Clerk
Robert Hintgen, Public Works Representative
Cheryl Krumholz, City Manager Representative
The following bids were submitted and read aloud:
Bidder's Name/City Bid Bond Total. Bid Amount
Gen-Con Construction
Jordan, MN Presented $299,900.00
Maertens-Brenny Construction
Minneapolis, MN Presented $271,000.00
Meisinger Construction. Co. Inc.
South St. Paul, MN Presented $269,500.00
Unicorp
St. Paul, MN Presented $259,800.00
The Deputy City Clerk announced that the bids would be tabulated and considered at
the July 13, 2004 City Council Meeting.
Deborah Guiher Deputy City Clerk
BO1_TON ~. M B N K , INC.
Consulting Engineers 8c Surveyors
1960 Premier Drive • Mankato, MN 56001-5900
Phone (507} 625-4171 • FAX (507} 625-4177
June 30, 2004
Robert Hintgen
Utility Division
Public Works Department
City of Richfield
6700 Portland Avenue
Richfield, MN 55423-2560
RE: Bid Evaluation for the Well No. 7 Enclosure
City of Richfield, Minnesota -City Bid No. 04-06
Dear Robert:
Four (4) bids were received for the Well No. 7 Enclosure . These bids were as follows:
1. Unicorp Inc. - $259,800.00
2. Meisenger Construction Co. - $269,500.00
3. Maertens-Brenny Construction - $271,000.00
4. Gen^Con Construction - $299,900.00
- The apparent low, responsive and responsible bidder was Unicorp Inc. from St. Paul, Minnesota.
The bids received were significantly higher than the budgetestimate for the project. The primary
reasons for the difference are as follows:
- Demolition costs were higher due to contractor concerns with the tight work area constraints.
- Structural excavation costs were higher, again due to contractor concerns with the tight work
area constraints
- Concrete costs were higher, due to recent increases in the cost of iron for reinforcement bars.
- Steel roof and structure costs were higher due to recent increases in the cost of steel components.
In general, we feel that the bids received were competitive and responsive and re-bidding of the project
would not provide. any cost savings. The bid documents did not contain any wording or ambiguities so as
to force the Contractors to build in additional contingencies. Unicorp Inc. is experienced in the type of
work required for this project, with over 12 years of experience.. The company has fulfilled the bidding
and contract requirements. Their bid included signed copies of the Affadavit ofNon-Collusion and
Statement of Intent to comply. We recommend that their bid be accepted.
Respectfully submitted,
BOLTON & MENK, INC.
Jon D. Peterson, P.E.
Project Manager
AGENDA SECTION: ('ONSRNT
AGENDA ITEM # hR
REPORT # 1 1 9
J STAFF REPORT
CITY COUNCIL MEETING
JULY 13, 2004
Related to:
CITY COUNCIL GOAL(S) NO. N/A AND/oR RICHFIELD 2020 GOAL(S) NO 19
REPORT PREPARED BY: CHRISTINE COSTELLO, PLANNING &
ZONING ADMINISTRATOR
NAME, TITLE
COUNCIL, PRESENTER:
DEPARTMENT DIRECTOR
REVIEW:
SIGNATURE
REVIEWED BY CITY ~~
MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of the attached subdivision waiver for 6712 Pleasant Avenue.
I. RECOMMENDED ACTION:
By motion: Adopt the attached resolution approving the subdivision
waiver for 6712 Pleasant Avenue.
II. BACKGROUND
The applicant, Mr. and Mrs. Burt Miller, are seeking to split the 100 foot wide parcel
at 6712 Pleasant Avenue into two 50 foot wide lots. The current parcel consists of
two 50 foot platted parcels, and the requested subdivision waiver will allow Mr. and
Mrs. Miller to separate these parcels.
III. BASIS OF RECOMMENDATION
071304-SubWaiver-6712PIeasant.doc
A. POLICY
• Approval of the subdivision waiver would not interfere with the purposes
of platting regulations, Section 500.05.
• Compliance with the regular platting requirements of Section 500.05,
Subdivision 1 of the City Code would result in an unnecessary hardship.
B. CRITICAL ISSUES
• Approval of the subdivision waiver will not create an unusable parcel, but
will result in two buildable 50 foot wide lots.
• 6712 Pleasant Avenue is in the R (Single Family Residential) zoning
district. The area of the proposed parcels will be 6,627 and 6,639 square
feet after the lot split. The minimum lot size requirement in the R District
is 6,700 square feet unless a parcel was a `lot of record' prior to June 1,
1995, in which case the minimum lot size is 5,000 square feet. Both of
the proposed 50 foot parcels were lots of record prior to June 1, 1995
and therefore meet the minimum lot size requirements.
• Four abutting parcels are 50 feet wide, while one nearby parcel is 75 feet
wide.
• The existing house on the parcel has a detached garage that is located
behind the house. The existing house and detached garage meet the
required setback for the R zoning district. The driveway over laps onto
the proposed two lots. A driveway easement has been placed on the
administrative lot split. The driveway will have to be shared by the
applicant and the owner of the other lot created. The applicant and other
homeowner will be required to obtain a legal agreement to be recorded
against the property titles for both properties since both parties will use
the driveway.
C. FINANCIAL
• N/A
D. LEGAL
• No legal notice is required; however, Community Development staff did
send a mailed notice to neighbors within 350 feet to inform them of this
requested subdivision waiver.
• 60 DAY RULE: The 60 day `clock' started when a complete application
was received on June 23, 2004. A decision must be given to the
applicant by August 25, 2004 OR the Council must notify the applicant
that it is extending the deadline (up to a maximum of 60 additional days
or 120 days total) for issuing a decision.
IV. ALTERNATIVE RECOMMENDATION(S~
• Deny this subdivision waiver if a finding of fact determines that the proposal
would have an adverse impact on adjacent properties.
V. ATTACHMENTS
• City Council Resolution
• Certificate of Survey
• Land-use and zoning maps for properties within 350 feet of the subject parcel
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Mr. and Mrs. Burt Miller, applicant and owner of 6712 Pleasant Avenue South.
RESOLUTION NO.
RESOLUTION AUTHORIZING A SUBDIVISION WAIVER
6712 PLEASANT AVENUE SOUTH
WHEREAS, an application has been filed with the City of Richfield which requests
approval of a subdivision waiver for the division of certain parcels of land located at 6712
Pleasant Avenue South, legally described as:
Parcel A: Lots 4 and 5, Block 7, LYNDALE SHORES ON WOOD LAKE,
Hennepin County, Minnesota
WHEREAS, the applicant proposes to divide the above-described Parcel A into two
parcels, legally described as:
Parcel One: Lot 4, Block 7, LYNDALE SHORES ION WOOD LAKE,
Hennepin County, Minnesota together with an ingress and egress
easement for driveway purposes over the north 6 feet of Lot 5, Block
7, LYNDALE SHORES ON WOOD LAKE, Hennepin County,
Minnesota.
Parcel Two: Lot 5, Block 7, LYNDALE SHORES ON WOOD LAKE,
Hennepin County, Minnesota together with an ingress and egress
easement for driveway purposes over the south 3 feet of Lot 4, Block
7, LYNDALE SHORES ON WOOD LAKE, Hennepin County,
Minnesota.
WHEREAS, Parcels B and C were lots of record before June 1, 1995; and
WHEREAS, the City has fully considered the request for approval for the
subdivision waiver; and
WHEREAS, the City Council finds that compliance with the City Code Section
500.05, Subdivision 1 would result in unnecessary hardship and that failure to comply
therewith will not interfere with the purposes of the platting regulations of Section 500.01.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Richfield, Minnesota, as follows:
1. A waiver for the subdivision of the Subject Property legally described above is
hereby granted; and
2. City. staff is authorized and directed to take any action necessary to effectuate
this resolution and to authorize the recording of conveyances complying with
the terms of this resolution.
3. The lot split will not be effective until a legal agreement for the shared driveway
is done by both parties and filed against both property titles for the shared
driveway.
Adopted by the City Council of the City of Richfield, Minnesota this 13th day of ,July, 2004.
Martin J. Kirsch, Mayor
ATTEST:
Nancy Gibbs, City Clerk
SUBDIVISION WAIVER FOR 6712 PLEASANT AVENUE
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SUBDIVISION WAIVER FOR 6712 PLEASANT AVENUE
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LAND USE SYMBOLS
COM =COMMERCIAL
APT =APARTMENT BUILDING
DPLX =TWO FAMILY RESIDENTIAL
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Property Description
Leta 4 and 5, 81adc 7, LYHDALE SHORES ON W000 LIJCE. Hennepin County, Minnesota.
,Parcel One:
Lot 4. Block 7. LYNOALE SHORES ON WOOD LAKE. Hemlepin County. Minnesota together
with ~ ingress and egroaa easemerrt far dHvewoy purposes over
the north 6 feet of L.ot 5, Black 7, LYNDALE SHORES ON WOOD LAKE,
H~Pb County, Minnesota.
Parcet Two:
lot 5, 81aek 7. LYNDALE SHORES ON W000 LAKE, liennspin County, Minnesota together
with an ingn~as and egrose easement for driveway purposes over
the south 3 feet of Lot 4, Block 7, LYNLIALE SHORES ON WOOD LAKE.
Hermspin Coanty, Minnesota.
1 hereby certify that this survey, plan or report was propared by me or under
my direct supervision and that I am a duy Registered Land Surveyor under the
laws of the State of Minnesota.
W. BROWN LAND SURVEYJNG~/~INC.
_~~ %°~' ~~~'~~ Daied:'--June 22. _ 2004 -
n -04 Woodrow A. Brown, R.LS. N0. 15230
as3v
A~aix~is~i.~e
~.Qt ~~,t P OZ': NoRrti
~Z1Ttt~II ~3~E:T spate: 1'=2D'
-x- Fence
Parcel 1 6,630.51 Sq. Ft
Parcel 2 6,636.51 5q. Ft.
132.55 meas.
30
1 d 1
AGENDA SECTION: CONSENT
AGENDA ITEM # 6D
REPORT # 118
~' STAFF REPORT
CITY COUNCIL MEETING
JULY 13, 2004
Related to:
CITY COUNCIL GOAL(S) No. 36 AND/OR RICHFIELD 2020 GOAL(S) NO 25, 29
REPORT PREPARED BY: JULIE URBAN, COMMUNITY
DEVELOPMENT SPECIALIST
NAME, T/TLE
COUNCIL PRESENTER:
DEPARTMENT DIltECTOR s
REVIEW:
SIGNATURE
REVIEWED BY CITY
MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a resolution establishing just compensation and authorizing the purchase of
the a artment buildin located at 6520 Cedar Avenue Air ort Noise Ac uisition Pro ram .
I. RECOMMENDED ACTION:
By Motion: Approve the attached resolution establishing just
compensation and authorizing the purchase of 6520 Cedar Avenue
Airport Noise Ac uisition Pro ram .
II. BACKGROUND
• On March 26, 2002, the City Council approved an agreement (Agreement) with
the Metropolitan Airports Commission (MAC) to provide $10 million of Federal
Aviation Administration (FAA) airport improvement program funds to the City of
Richfield to purchase properties (including all related costs) that are, or will be,
negatively impacted by airport operations.
• Single family and duplex properties in the 6600 and 6700 blocks of 18th Avenue
were identified for first priority purchase with the funds. The remaining funds are
0713ANAPjustcompAPT
to be used to purchase as many of the apartment buildings north of 66th Street
as possible, beginning with the northernmost building and moving south.
• Four apartment buildings, 6328, 6344, 6412 and 6444 Cedar Avenue, have
been purchased to date.
• The owner of the apartment building located at 6400 Cedar Avenue declined the
City's purchase offer in 2003.
• Appraisals for 6520 Cedar Avenue were completed and reviewed in 2002
($565,000). The selected appraisal was recently updated to reflect current
market conditions ($620,000). MAC concurs with the appraisal.
• Staff is recommending just compensation of $620,000 for the apartment
building.
• The apartment tenants may also be eligible for relocation benefits. The
relocation benefits will be calculated separately in accordance with the Uniform
Relocation Act once an offer is accepted by the property owner.
III. BASIS OF RECOMMENDATION
A. POLICY
• The City and MAC have identified certain properties for purchase for
the Airport Noise Acquisition Program in accordance with the
Agreement.
• The subject property is within the 87d6 contour.
• Uniform acquisition procedures will be followed.
B. CRITICAL ISSUES
• Conworth, Inc. will present a purchase offer to the property owner
upon the City Council's approval of just compensation.
C. FINANCIAL
• Sufficient grant funds are available for the purchase of the property.
• MAC is obligated to fund this transaction in accordance with the
Agreement.
• MAC has reviewed the fair market value of the property and has
recommended that the City Council approve just compensation so that
a purchase offer can be made to the property owner.
D. LEGAL
• There are no pending legal issues at this time.
E. TIMING
• The City's acquisition agent, Conworth, Inc. and legal counsel,
Kennedy & Graven, will coordinate settlement issues with property
owners.
• The timing of the settlement closing will be negotiated with the
property owner.
• Tenants will be provided notice to vacate in accordance with the
Uniform Relocation Act.
IV. ALTERNATIVE RECOMMENDATION(S~
• Delay approval of just compensation.
• Do not approve just compensation and property acquisition.
V. ATTACHMENTS
• Resolution
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
RESOLUTION NO.
RESOLUTION ESTABLISHING JUST COMPENSATION AND AUTHORIZING
PURCHASE OF REAL PROPERTY LOCATED AT
6520 CEDAR AVENUE
AIRPORT NOISE ACQUISITION PROGRAM
WHEREAS, on September 10, 2001, the City Council approved the acquisition
strategy for residential property in the airport mitigative area, using $10 million in federal
funds secured by Congressman Sabo; and
WHEREAS, on March 26, 2002, the City Council approved an agreement
(Agreement) with the Metropolitan Airports Commission (MAC) to provide $10 million of
Federal Aviation Administration (FAA) airport improvement program funds to the City of
Richfield to purchase properties (including all related costs) that are, or will be, negatively
impacted by airport operations; and
WHEREAS, within the aforementioned airport mitigative area the real property
identified for purchase is:
Property Address Legal Description
6520 Cedar Ave S Lot 4 and the south 71 feet of Lot 5, Block 1, Iverson's Third
Addition
Together with all abutting streets and alleys, vacated or to be
vacated, and all easements, gaps, overlaps and gores,
appurtenant thereto
WHEREAS, the City is authorized by Minnesota Statutes to acquire real property
within its corporate boundaries; and
WHEREAS, the City has caused appraisals for the subject property to be made by
qualified independent professional appraisers to determine fair market value of real estate;
and
WHEREAS, a qualified review appraiser for the real property has certified the
appraisal reports as being in conformity with professional appraisal standards, the Uniform
Standards of Professional Appraisal Practice (USPAP) of the Appraisal Foundation. and
the Code of Ethics and Standards of Professional Appraisal Practice of the Appraisal
Institute, Appraisal Specifications (5-491.203) set forth in the State of Minnesota's Right of
Way Manual, and the Federal Aviation Administration's (FAA) Preparation of Real Estate
Appraisals, Appraisal Report Content, Detailed Appraisals and Appraisal Reviews; and
WHEREAS, the fair. market value, as recommended by the review appraiser and
approved by MAC and recently updated to reflect current market conditions, is $620,000.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield,
Minnesota as follows:
1. That the just compensation amount of $620,000 for the purchase of 6520 Cedar
Avenue is hereby approved.
2. That the City's acquisition/negotiation/relocation consultant, Conworth, Inc., is
authorized to present purchase offers of approved amounts to the respective property
owners.
Adopted by the City Council of the City of Richfield, Minnesota this 13th day of July,
2004.
Martin J. Kirsch, Mayor
ATTEST:
Nancy Gibbs, City Clerk
AGENDA SECTION: CONSENT
AGENDA ITEM # ( C
REPORT # 117
~~' STAFF REPORT
CITY COUNCIL MEETING
JULY 13, 2004
Related to:
CITY COUNCIL GOAL(S) No. N/A AND/OR RICHFIELD 2020 GOAL(S) NO
REPORT PREPARED BY: CHRIS REGIS, FINANCE MANAGER
NAME, Tirzs
COUNCIL PRESENTER:
DEPARTMENT DIRECTOR
REVIEW: ~V ~+
REVIEWED BY CITY
MANAGER:
N/A
ITEM FOR COUNCIL CONSIDERATION:
Consideration of the attached resolution approving procedures for private activity revenue
bond financin .
I. RECOMMENDED ACTION:
By Motion: Approval of the attached resolution approving
Procedures For Private Activit Revenue Bond Financin .
III. BACKGROUND
Under the Minnesota Municipal Industrial Development Act, the City of Richfield has
authority to issue revenue bonds or notes to attract or promote economically sound
industry and commerce to the City, including the development of facilities by
qualified organizations.
As part of this authority, the City of Richfield has adopted certain guidelines to aid
the City in the issuance of revenue bonds or notes. The City Council had originally
adopted "Guidelines for the Issuance of Industrial Revenue Bonds for the City of
Richfield, Minnesota," in October 1980, modified in November 1983, and modified
most recently in November 2002.
07132004ProcedureTaxExemptFinanci ng
Recently the City was contacted regarding a tax exempt refinancing by a qualified
organization to be issued by another city. However, due to the qualified organization
having a facility in the City of Richfield, the City is considered a "host city" and is
required to perform certain procedures under federal and state law.
As such these guidelines are now in need of updating once again. Consequently,
staff is recommending the City Council to review and revise its guidelines for the
issuance of private activity bonds.
III. BASIS OF RECOMMENDATION
A. POLICY
• Under the Minnesota Municipal Industrial Development Act, Minnesota
Statutes, Sections 469.152 to 469.1651, the City of Richfield has
authority to issue revenue bonds.
B. CRITICAL ISSUES
• It is important to review and revise procedures and guidelines for the
issuance of private activity revenue bond financing m order to keep
them current.
• Another political subdivision is issuing tax exempt financing for a
project in a city other than the City of Richfield for a qualified
organization, and that organization has a facility in the City of
Richfield.
• Consequently, the City of Richfield is considered a "host city" and
under federal and state law must undertake certain procedures not
presently covered in the current guidelines.
C. FINANCIAL
• Based on the revised guidelines the City will receive anon-refundable
base fee of $500 while serving as a host city.
• In addition, the revised guidelines allow the City to be reimbursed and
held harmless for and from any out-of-pocket expenses related to the
tax exempt financing, including, but not limited to, legal fees, financial
analyst. fees, bond counsel fees, staff costs, and any deposits or
application fees required under state law in order to secure allocation
of bonding authority.
D. LEGAL
• The guidelines provide the City with the authority required with respect
to private activity tax exempt financing.
IV. ALTERNATIVE RECOMMENDATION(S~
• Forgo approving the attached resolution and not proceed with the review and
revision of the procedures for private activity financing.
V. ATTACHMENTS
• Resolution.
• Procedure for application
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
RESOLUTION NO.
RESOLUTION AMENDING PROCEDURES FOR
PRIVATE ACTIVITY REVENUE BOND FINANCING
WHEREAS, the City of Richfield is authorized under various provisions of
Minnesota Statutes to issue bonds the proceeds of which are loaned to private entities,
referred to as "private activity bonds;" and
WHEREAS, the Council has adopted certain "Guidelines for the Issuance of
Industrial Revenue Bonds for the City of Richfield, Minnesota," originally approved in
October, 1980 and modified in November 1983; and November 2002;
WHEREAS, the Council has determined to revise it's guidelines for the issuance of
private activity bonds (which term includes industrial revenue bonds), and to that end has
reviewed a document titled "Procedure for Application to the City of Richfield, Minnesota
for Private Activity Revenue Bond Financing," referred to as the "Private Activity Bond
Procedures."
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield,
as follows:
1. The Council approves the Private Activity Procedures in the form on file in City
Hall.
2. The Private Activity Procedures supersede in all respects the prior Guidelines
for the Issuance of Industrial Revenue Bonds, and are effective for any private
activity bonds issued after the date of approval of this resolution.
Adopted by the City Council of the City of Richfield., Minnesota this 13th day of July,
2004.
Martin J. Kirsch, Mayor
ATTEST:
Nancy Gibbs, City Clerk
PROCEDURE
FOR
APPLICATION TO
CITY OF RICHFIELD, MINNESOTA
FOR
PRIVATE ACTIVITY REVENUE BOND FINANCING
Effective as of July 13, 2004
Finance Director
City of Richfield
6700 Portland Avenue
Richfield, MN 55423
SJB-221408v1
RC 145-501
PROCEDURE FOR APPLICATION
TO THE CITY OF RICHFIELD FOR
PRIVATE ACTIVITY REVENUE BOND FINANCING
Table of Contents
Part I
Part II
Part III
Part IV
Part V
Part VI
Part VII
Page
General ..............................................:......................................................................1
Guidelines ................................................................................................................2
Miscellaneous Matters .............................................................................................4
Application for Tax-Exempt Financing
(Commercial, Industrial or Health Care) .................................................................6
Application for Tax-Exempt Financing
(Multi-Family Housing) ...........................................................................................9
Addendum to Application..........: .............:.............................................................12
Indemnification Letter of Agreement ....................................................................13
SJB-221408v1
RC 145-501
PART I
CTF.NF.R AT.
Under the Minnesota Municipal Industrial Development Act, Minnesota Statutes,
Sections 469.152 to 469.1651 (the "Industrial Development Act"), the City of Richfield has
authority to issue revenue bonds or notes to attract or promote economically sound industry and
commerce to the City, including the development of facilities by qualified 501(c)(3)
organizations.
Under Minnesota Statutes, Chapter 462C (the "Housing Act") the City is authorized to issue
housing revenue bonds to finance multi-family residential housing projects for low and moderate
income persons and elderly persons. Projects must be consistent with the City's Housing Plan
and must be embodied in a Housing Program as these terms are defined in the Housing Act.
The Council is aware that such financing for certain private activities may be of benefit to the
City and will consider requests for tax exempt financing subject to these Guidelines. The
Council considers tax exempt financing to be a privilege, not a right.
It is the judgment of the Council that tax exempt financing is to be used on a selective basis to
encourage certain development that offers a benefit. to the City as a whole, including significant
employment and housing opportunities. It is the applicant's responsibility to demonstrate .the
benefit to the City, both in writing and at the required public hearing. The applicant should
understand that .although approval may have been granted by the City for the issuance of
financing for a similar project or a similar debt structure, that is not a basis upon which approval
will be granted. Each application will be judged on the merits of the project as it relates to the
public purposes of the Housing Act or the Industrial Development Act and the benefit to the City
at the time the request for financing is being considered.
PART II
GUIDELINES
The Council will consider tax exempt financing for manufacturing and health care
facilities, and other facilities operated by qualified 501(c)(3) organizations, under the
Industrial Development Act; and housing projects under the Housing Act. An applicant
for tax exempt financing pursuant to the Industrial Development Act must submit to the
City the application contained in Part IV of these Guidelines. An applicant for tax
exempt financing, pursuant to the Housing Act, must submit to the City the application
contained in Part V of these Guidelines.
2. Projects must be compatible with the overall development plans and objectives of the
City and comply with the zoning and land use regulations of the City.
An application will not be considered by the Council until tentative City Code findings
and requirements have been made with respect to zoning, building plans, platting, streets,
and utility services. The application must be accompanied by the addendum contained in
Part VI of these Guidelines and must provide information as to the project's need for
municipal services including, but not limited to, street improvements, water and sewer
services, and police and fire protection.
4. The project must be a positive benefit to the City. The project must be of a nature that
the City wishes to attract, or an existing business which. the City wishes to retain or
expand within the City, considering' .employment opportunities, incentive for further
development, impact on City services, and support for the industrial, commercial or
health. care operations currently located in the City. A housing project must provide
significant housing opportunities for low and moderate income persons or the elderly.
5. The Council will, if requested, grant anapplicant apre-application. review. The purpose
of the pre-application review is to inform applicants of the possibility of rejection or the
possible bases for such rejection. The fact that the project is not rejected at the pre-
application stage is not to be construed as approval of the project or as an indication that
the project will be approved upon formal request to the Council. Requests for tax exempt
financing may be rejected by the City whether or not the project was submitted to a
pre-application review and regardless of the outcome or recommendation of that pre-
application review.
A request for pre-application review must be in writing, addressed to the City Finance
Director, and set forth the name of the project, the type of project intended and the name,
address and telephone number of the person who will be representing the applicant at the
pre-application review, together with such additional information as the applicant desires
to submit.
2
6. The applicant must select a qualified financial adviser or underwriter to assist the
applicant in preparing all necessary application documents and materials. The financial
adviser will submit a letter that establishes the financial feasibility of the project.
Applications may, in the alternative, include a signed letter from a responsible financial
institution indicating that the project is economically feasible and viable and stating that
bonds can be successfully sold for the project or that an individual or institution intends
to purchase all of the bonds.
The applicant must receive approval from the appropriate state agencies, secure financing
and commence construction within one year of the date of the resolution giving
preliminary approval to the project or the housing program. Upon application, the
Council may approve an extension of the preliminary approval.
The City will appoint bond counsel for the bond issue, which will normally be the City's
regularly retained bond counsel.
7. Pursuant to the Industrial Development Act and the Housing Act, consideration of an
application for tax exempt financing must be done at a public hearing held by the
Council. Modifications to the project after the public hearing and preliminary approval
must be consistent with the scope of the project as proposed at the time of preliminary
approval.
The City is to be reimbursed and held harmless for and from any out-of-pocket expenses
related to the tax exempt financing including, but not limited to, legal fees, financial
analyst fees, bond counsel fees, the City staffs expenses in connection with the
application, and any deposits or application fees required under state law in order to
secure allocation of bonding authority. The applicant must execute a letter to the City
undertaking to pay all. such expenses. A form of the required letter is set forth as Part VII
of these Guidelines. Anon-refundable application fee in the amount. of $2,500 must be
included with the submission of the application.
9. Prior to closing and delivery of the bonds for the project, the applicant must pay, or
commit to pay an annual administrative fee in the amount of 1 /8th of 1 % (.125%) of the
outstanding principal balance of the bonds. At the City's discretion, the bond documents
may provide that the administrative fee will be paid in a lump sum at closing on the
bonds, or annually or semiannually at the times specified in the bond documents. The
administrative fees required by this paragraph will be adjusted at or paid prior to delivery
of the bonds if necessary to ensure compliance with the Internal Revenue Code and
regulations. .
10. Applications for financing must be made on the forms attached to these Guidelines. In
addition, the applicant must furnish a description of the project, a plot plan, elevation of
proposed buildings, landscape, lighting, and site preparation, together with a brief
description of applicant and the proposed financing in such form as required at the time
of application.
11. The Council may, in its sole discretion, impose conditions exceeding those required
under the City building code in respect to exterior building materials, landscaping,
signage lighting, and such other aspects as the Council may consider appropriate on a
case-by-case basis.
12. The Council may, in its sole discretion, withdraw its preliminary approval of a project
any time if in its judgment the purposes of the Act will not be served by going forward
with the project and its financing.
4
PART III
MISCELLANEOUS MATTERS
1. Ratings. The City will give its most favorable consideration to proposed tax exempt
bond issues that have the same rating as the City's obligations by Moody's Investment
Service or Standard & Poor's Corporation. Issues carrying lower ratings or non-rated
issues may be sold only to institutional or other investors on a private placement basis
and must be in denominations of at least $100,000. The Council -may depart from this
guideline when in its judgment the project is of a level of merit and public purpose to
justify the departure; and in case of such a departure the Council must state its reasons
therefor in the resolution awarding the sale of the bonds.
2. Refundin~s. The Council will normally approve the refunding of atax-exempt issue but
only upon a showing by the applicant of (i) substantial debt service savings, (ii) the
removal of bond covenants significantly impairing the financial feasibility of the project,
or (iii) both (i) and (ii). In the case of refundings of bonds for which the administrative
fee listed in paragraph 9 of Part II have been paid in full, no new administrative fees are
required; but the non-refundable application fee must be paid together with all City
expenses in excess of that fee. If the administrative fees for the.. refunded bonds are not
paid in full upon closing on the refunding bonds, such fees must continue to be paid for
the refunding bonds.
In the case of refundings of bonds where no administrative fee has .been paid, the
administrative fees listed in paragraph 9 of Part II must be paid. The application form is
to be appropriately modified.
3. Subsequent Proceedings. Where changes to the underlying documents or credit facilities
of outstanding bond issues are to be made and require Council action (including changes
that are a "deemed reissuance" under Internal Revenue Service regulations), no
administrative fee is charged but anon-refundable fee of $2,500 must be deposited with
the City to cover administrative costs. No formal application form is required.
4. Issue by Another Political Subdivision. The City will consider requests for tax exempt
financing of projects in the City by other political subdivisions. In these cases the non-
refundable application fee must be paid and all procedures through the approval of the
preliminary resolution followed. No administrative fee is charged.
In the situation where another political subdivision is issuing tax exempt financing for a
project in a city other than the City of Richfield for a qualified 501(c)(3) organization,
and .that organization has a facility in the City of Richfield, the City is considered a host
city and under federal and state law must undertake certain steps and the following will
apply:
5
State Law
• The execution of a joint powers agreement between the City and the organization.
Federal Law
• A public hearing must be held in each jurisdiction where a facility is located.
• Notice of public hearing must be published in the official newspaper.
• The City Council of Richfield must adopt a resolution approving the project and
financing.
In addition, the City will charge the organization a fee of $500 to cover miscellaneous
staff time and administrative time.
The organization will be responsible for all publication and legal costs and any
miscellaneous out of pocket costs.
There will be no annual administrative fee charged.
5. City Contact. Initial contacts about tax-exempt financing are made by contacting:
Finance Director
City of Richfield
6700 Portland Avenue
Richfield, MN 55423
6. Deadlines. The Council conducts all tax exempt financing matters at regularly scheduled
Council meetings held on the second and fourth Tuesdays of each month. Documents for
Council consideration must be at the City office on the Tuesday preceding the next
regular Council meeting at which the matter is to be considered. In the case of a publicly
offered bond, issue the documents, when submitted, may specify a maximum price and
maximum effective interest rate if prices and rates have not yet been established.
6
PART IV
APPLICATION FOR
TAX-EXEMPT FINANCING
(Manufacturing, Health Care or Qualified Other Nonprofit)
1. APPLICANT
a. Business Name:
b. Business Address:
c. Business Form (corporation, partnership, sole proprietorship, etc.):
d. Authorized Representative:
e. Principal contact person and telephone number:
2. PURPOSE OF REQUESTED FINANCING:
a. New Facility (describe):
b. Expansion (describe):
c. Refunding (attach explanatory letter)
3. GIVE BRIEF DESCRIPTION OF NATURE OF BUSINESS, PRINCIPAL PRODUCTS,
ETC.:
4. ESTIMATED PROJECT COSTS: (Not required for refunding)
Land $
Building
Equipment
Architectural, Engineering
Costs of Issuance
Capitalized Interest,
including discount
Other
Total Financing Requested $
7
5. AMOUNT OF FINANCING REQUESTED: $ (_% of project costs}
6. TYPE OF FINANCING PROPOSED:
Bonds Tax Exempt Mortgage.
Expected Term of Financing Years
Security:
Mortgage
Letter of Credit
Guaranty (third party)
Guaranty (personal)
Unsecured
Other (specify)
7. BUSINESS PROFILE: (Not required for refunding)
a. Is the business located in the City of Richfield now?
b. Number of employees in City:
1) Before this project:
2) After this project:
c. Approximate annual sales:
d. Length of time in business:
Length of time in business in City:
e. Do you have facilities in other locations? If so, where?
8
8. NAMES OF:
a. Underwriter (name and contact person):
b. Corporate Counsel:
c. Underwriter's Counsel:
9. WHAT IS YOUR TARGET DATE FOR:
a. Construction start:
b. Construction completion:
10. Attachments:
a. Project description:
b. Draft application to Department of Trade and Economic Development -together
with necessary attachments
c. Initial application fee
d. Indemnification Letter of Agreement
I certify that the information provided above contains no misrepresentations, omissions or
concealments of material facts: and that the information given is true and complete to the best of
my knowledge. I have been furnished a copy of the Procedure for Application to the City of
Richfield for Private Activity Revenue Bond Financing and is aware of its content and agree to
be bound by its terms and the terms of the indemnification letter.
Signature
Title
Date
9
PART V
APPLICATION FOR TAX-EXEMPT FINANCING
(Multi-Family Housing)
DATE OF APPLICATION:
APPLICANT:
CONTACT PERSON:
TITLE:
ADDRESS:
TELEPHONE (_)
PROJECT NAME:
PROJECT LOCATION:
PROJECT INFORMATION
Efficiency
One Bedroom
Two Bedroom
Three Bedroom
Parking (included in rent/
not included in rent)
Laundry
RENT
UNITS
10
Utilities included in monthly rent:
OPERATING EXPENSES
of Gross (Annual)
TOTAL PROJECT COST: $ DEVELOPER EQUITY: $
DEBT SERVICE: $ *HARD COSTS: $
LAND VALUE: $ SOFT COSTS: $
*(Hard Costs are all project costs the IRS has determined to be eligible items for depreciation.)
ANTICIPATED INTEREST RATES: AMORTIZATION SCHEDULE:
-Year Amortization Schedule
If the project were conventionally financed, what interest rate would you expect to pay?
SALES ASSUMPTION: DEPRECIATION METHOD:
How many years do you plan to Years:
hold the property before you
sell? Type:
years. At what percent do you
feel the value of the project Amount of Total Basis: $
will appreciate?
EQUIPMENT:
$ of project cost is for equipment (e.g., washers/dryers)
ANTICIPATED INCREASES: ANTICIPATED VACANCY RATE:
Revenue: % per year First Year:
Expenses: % per year After First Year:
11
CONSTRUCTION SCHEDULE
Anticipated construction commencement date:
Anticipated construction completion date:
ADDITIONAL INFORMATION:
I certify that the information provided above contains no misrepresentations, omissions or
concealments of material facts and that the information given is true and complete to the best of
my knowledge. I have been furnished a copy of the Procedure for Application to the City of
Richfield for Private Activity Revenue Bond Financing and is aware of its content and agree to
be bound by its terms and the terms of the indemnification letter.
Signature
Title
Date
12
PART VI
ADDENDUM TO APPLICATIONS
The following items must be attached to each application:
APPENDIX A
A brief description of the organizational structure of Applicant, including parent subsidiary and
affiliate organizations (if applicant is other than an individual).
APPENDIX B
Statement of Applicant's business history, including any multi-family rental projects.
APPENDIX C
The name, address, and telephone number of:
1. The Applicant's legal counsel
2. The Applicant's accountant
3. The architect of the proposed Project
4. The engineer of the proposed Project
5. The general contractor of the proposed Project
APPENDIX D
1. Present ownership of the proposed Project site and Applicant's interest therein.
2. Present zoning of the Project site and a description of what city land-use approvals are
needed for this project.
3. The projected number of new employees to be added to the Applicant's permanent work
force because of the Project (for Commercial, Industrial or Health Care only).
4. Other financing attempted or available to the Project including any interim financing.
5. Statement regarding whether or not this project has all required city approvals. If the
project does not have all of the required approvals, list the approvals still needed and a
tentative time schedule.
APPENDIX E
Indemnification Letter of Agreement.
APPENDIX F
Proforma Analysis of the Project
13
PART VII
INDEMNIFICATION LETTER OF AGREEMENT
The Mayor of the City of Richfield
and Members of the City Council
City of Richfield
6700 Portland Avenue
Richfield, MN 55423
RE: Application of
of Richfield
for Tax Exempt Revenue Bond Financing by the City
Dear Mayor and Members of the City Council:
This letter of agreement is given by , a under the
laws of Minnesota ("Applicant") as required by the City of Richfield, Minnesota in connection
with its consideration of an application for tax exempt revenue bond financing for the project
described in the application.
Applicant agrees as follows:
1. Applicant agrees to pay or reimburse the City for any and all costs and expenses which the
City may incur in connection with its consideration of the project and the granting of tax
exempt revenue bond financing therefor, whether or not the project is preliminarily
approved by the City, whether or not the project is approved by the State of Minnesota,
whether or not revenue bond financing is finally approved by the City, whether or not the
bonds are issued and sold, and whether or not the project is carried to completion.
2. Applicant agrees to indemnify and hold the City, its officers, employees and agents
harmless against any and all losses, claims, damages, expenses or liabilities, including
attorneys fees. incurred in their defense, to which the City, its officers, employees and
agents may become subject in connection with the City's consideration, issuance or sale of
the bonds for Applicant's project and the carrying out of the transactions contemplated by
this agreement and any resolutions adopted, or agreements executed by the City in
connection with the issuance of its bonds for this project.
3. Applicant hereby releases the City; its officers, agents and employees from any claims,
causes of action, losses, damages, or liabilities which it may have against the City, its
officers, agents, and employees or which it may incur in connection with: the City's
consideration of the application for industrial development revenue bond financing for
Applicant's project; the failure of the City, in its discretion, to issue tax-exempt revenue
bonds for Applicant's project; the issuance and sale of the bonds; the construction of the
14
project; or any other matter or thing of any type or nature whatsoever which may arise in
connection with the foregoing.
4. Applicant is aware of the City's application and administrative fee structure for tax exempt
financing and agrees and covenants that all such fees will be paid in the amount and at the
times required.
Dated: (Applicant)
By
Its
15
AGENDA SECTION: CONSENT
AGENDA ITEM # 6 B
REPORT # 116
~- STAFF REPORT
CITY COUNCIL MEETING
JULY 13, 2002
Related to:
CITY COUNCIL GOAL(S) No. 29
AND/OR RICHFIELD 2020 GOAL(S) NO
N/A
REPORT PREPARED BY:
STEVEN L. DEVICH,
ADMINISTRATIVE SERVICES
DIRECTOR
Na,~, TITLE
COUNCIL PRESENTER:
DEPARTMENT DIRECTOR
REVIEW:
REVIEWED BY CITY
MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of the attached resolution modifying a Health Care Savings Plan for
Mana ement Em to ees.
I. RECOMMENDED ACTION:
By Motion:. Adopt the attached resolution modifying aHealth -Care
Savin s Plan for eli ible Mana ement em to ees.
II. BACKGROUND
In 2001, the Minnesota Legislature granted authority to the Minnesota State
Retirement System (MSRS) to offer a post retirement health care savings plan to
eligible employees of the State of Minnesota and other governmental subdivisions.
MSRS was authorized to administer these plans after they were adopted by
governmental subdivisions throughout the state.
0713HCSPManagement
A post retirement health care savings plan is an employer-sponsored program that
allows employees to save money to pay medical expenses and/or health insurance
premiums after termination of public service. Employees are able to choose among
different investment options provided by the State Board of Investment. Assets
contributed into the program are tax-free, accumulate tax free, and if used for
medical expenses, remain tax-free.
Legal authority to establish such plans is provided through Minn. Stat. 352.98 and
Internal Revenue Service rulings. The establishment of each plan, including
contribution formulae must be negotiated where dealing with a collective bargaining
unit or personnel policy where non-union employees are involved. Once
established the plan must be filed with MSRS to initiate the program.
Participation for each individual employee within a bargaining or employee group is
mandatory once the plan is established for that respective group.. Moreover, the
amounts contributed for or by each employee in a particular group must be the
same for every employee of the group. Contributed amounts between employee
groups will vary however.
A Health Care Savings Plan was established by the City Council for Management
employee group on September 24, 2002. The Management group has now agreed
upon a modified plan that increases the mandatory contributions to the plan. In
addition, the modified plan stratifies employee contributions by years of service and
segregates the City Manager and Department Heads as one distinct sub-group
requiring the highest contributions.
III. BASIS OF RECOMMENDATION
A. POLICY
• The State Statutes have been amended to provide the opportunity for
a very valuable benefit to city employees. The City of Richfield is
pursuing this benefit with employee groups that are interested in such
a mandatory plan.
• Approval by the City Council of the attached resolution will provide the
City authority to proceed with this modified .program for Management
employees not represented by a collective bargaining unit.
B. CRITICAL ISSUES
• There is no time critical issue pertaining to the implementation of this
plan. However, the majority of management employees -have
expressed a desire to implement the modified program, so it should be
pursued at our earliest opportunity.
• After City approval, this plan must be submitted to MSRS for filing and
implementation.
C. FINANCIAL
• There is no cost to the City in this version of the plan since the City
makes no contribution. In fact there is a cost savings to the City in
that wages and severance pay that the employee contributes to the
Health Care Savings Plan are not subject to Social Security or
Medicare contributions.
The plan provides a great tax savings to the participating employees
and provides a tax mechanism to fund post retirement medical costs.
D. LEGAL
• There is legal authority for this plan in Minnesota Statutes and IRS
Code.
• The plan modification has been sent to the State for review and has
received informal approval.
IV. ALTERNATIVE RECOMMENDATION(S~
• The City Council could decide not to approve this plan change. If the City
Council chooses to do so, the current plan would remain in effect.
V. ATTACHMENTS
• Resolution.
Health Care Savings Plan.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
RESOLUTION NO.
RESOLUTION AUTHORIZING THE. ESTABLISHMENT OF A POST RETIREMENT
HEALTH CARE SAVINGS PLAN FOR MANAGEMENT EMPLOYEES
WHEREAS, Laws of Minnesota 2001, chapter 352.98, authorizes the Minnesota
State Retirement System (MSRS) to offer a Post Retirement Health Care Savings Plan
(Plan) program to state employees, as well as, other governmental subdivisions, and ;and
WHEREAS, the Internal Revenue Service Code provides for such Plans, and
WHEREAS, the City of Richfield is interested in offering the Plan to eligible City
employees as a tax free method for employees to set aside money to cover the ever
increasing costs of health insurance and medical costs after termination of public
employment, and
WHEREAS, such plans must be established by employee group, either through a
collective bargaining agreement for union employees or a personnel .policy for employees
not covered by a collective bargaining agreement, and
WHEREAS, the provisions of a Plan have been agreed to by the Management
group of City employees and the City of Richfield, and
WHEREAS, the proposed plan is a net savings to the City of Richfield.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Richfield hereby authorizes the City Manager to establish a health Care Savings Plan for
the Management group of employees in the City of Richfield.
Adopted by the City Council of the City of Richfield, Minnesota this 13th day of July
2004.
Martin J. Kirsch, Mayor
ATTEST:
Nancy Gibbs, City Clerk
Policy:. Management Post Retirement Health Care Savings Plan
Approved by:
Effective Date:
Page: 1 of 2
Plan Purpose The City of Richfield is interested in establishing a means for eligible
employees to participate in a mandatory program to help defray some of
the costs of post employment health related expenses, including health
insurance premiums using pre-tax dollars. Participation in the Post
Retirement Health Care Savings Plan, administered by the Minnesota State
Retirement System (MSRS), is intended to provide an opportunity to
accomplish that goal.
Post Retirement The Post Retirement Health Care Savings Plan (HCSP) is an
Health Care Savings Employer-sponsored program that allows eligible employees to:
Plan 1) defer payment of a portion of unused vacation and personal leave as a
severance payment at the time of termination to pay for eligible health
insurance premiums and/or health expenses after separation from City
service, and
2) defer a portion of an Employee's bi-weekly salary for deposit into their
HCSP for the payment of qualified healthcare related expenses after
separation from City service.
Employees will be able to choose among several different investment
options provided by the Minnesota State Board of Investment. Under the
Plan, amounts contributed into the HCSP are tax-free and not subject to
FICA contributions. Assets in the HCSP will accumulate tax-free and
since payouts are used for qualifying medical expenses, they will also
remain tax-free.
Eligibility to Participation in the Management HCSP is mandatorv for all employees
Participate that meet the following requirements:
The Employee must be a member of the Richfield Management Pay
Classification Plan or the City Manager at-the time of termination of
employment, and
2. The Employee must have been continuously employed by the City of
Richfield for at least 3 consecutive years.
Contribution Mandatory participation in the Management HCSP shall be in accordance
Formula with, and limited to the following formulas for contributions:
I. Bi-weekly Contribution
1. An eligible Employee classified in pay grades M-1 through M-4 must
contribute to the Employee's account in the HCSP according to the
following schedule based on total City service:
• An eligible Employee with more than 3 but less than 5 years of
service must contribute $20 per pay period to the Employee's
account in the Management HCSP. Such contributions shall not
exceed $20 per pay period.
• An eligible Employee with more than 5 but less than 10 years of
service must contribute $25 per pay period to the Employee's
account in the Management HCSP. Such contributions shall not
exceed $25 per pay period.
• An eligible Employee with more than 10 but less than 20 years of
service must contribute $30 per pay period to the Employee's
account in the Management HCSP. Such contributions shall not
exceed $30 per pay period.
• An eligible Employee with more than 20 ears of service must
contribute $35 per pay period to the Employee's account in the
Management HCSP. Such contributions shall not exceed $35 per
pay period.
2. An eligible Employee classified in the M-5 pay grade and the City
Manager must contribute $50 per pa period to the Employee's
account in the Management HCSP. Such contributions shall not
exceed $50 per pay period.
II. Severance Contribution
1. Severance shall be paid in cash for the first 80 hours of accumulated
but unused Personal Leave. Severance based on accumulated but
unused Personal Leave in excess of 80 hours shall be paid as a credit
to the Employee's account in the Management HCSP.
2. Severance shall be paid in cash for the first 40 hours of accumulated
but unused Vacation Leave. Severance based on accumulated but
unused Vacation Leave in excess of 40 hours shall be paid as a credit
to the Employee's account in the Management HCSP.
3. All severance payments based upon Personal & Vacation Leaves are
calculated as described above, by multiplying the number of hours by
the applicable rate of pay at the time of termination.
Contributions authorized under this Plan shall continue until such time as
this policy is amended or repealed by the City of Richfield.
HCSP The HCSP is authorized under the Internal Revenue Code and is
Administration administered by the Minnesota State Retirement System.
AGENDA SECTION: CONSENT
AGENDA ITEM # 6A
REPORT # 115
STAFF REPORT
CITY COUNCIL MEETING
JULY 13, 2004
Related to:
CITY COUNCIL GOAL(S) No. N/A
REPORT PREPARED BY:
COUNCIL PRESENTER:
DEPARTMENT DIRECTOR
REVIEW:
REVIEWED BY CITY
MANAGER:
arm/oR RICHFIELD 2020 GOAL(S) NO N/A
BETSY OSBORN, ADMINISTRATIVE
SUPPORT SERVICES MANAGER
NAME, TITLE
SIGNATURE
/~~-- _.
ITEM FOR COUNCIL CONSIDERATION:
Consideration of first reading of an ordinance that repeats sections 1200, 1210, 1215, and
1225 in their entirety; and first reading of a new section 1202 which amends and adopts new
sections relating to the sale and consumption of alcoholic beverages.
Set the second reading for Seatember 16. 2004.
I. RECOMMENDED ACTION:
By Motion: Approve the first reading of the attached ordinance that
repeal of sections 1200, 1210, 1215, and 1225 in their entirety;
approve the first reading of a new section 1202 which amends and
adopts new sections relating to the sale and consumption of
alcoholic beverages, and set the second reading for September 16,
2004.
0713 Liquor Ordinance Revisions
II. BACKGROUND
On September 9, 2003, staff met with the City Council to discuss some potential
changes to the City's current liquor ordinance. Staff was specifically looking for
direction on allowing businesses, per new state law, to stay open until 2 a.m.;
allowing for alcohol sales on Sundays as early as 10 a.m.; allowing for temporary
sales of intoxicating alcohol to groups; and, whether businesses in town should be
allowed (off sale) to deliver alcohol to private homes. Staff also indicated that there
were numerous housekeeping items that needed attention within the ordinance and
some general updating of information. At that meeting, the Council gave staff the
following direction:
• The ordinance should allow for alcohol sales to occur up until 2 a.m. for those
establishments that are licensed by the State to do so.
• The ordinance should allow for the sale of alcohol to occur on Sundays as early
as 10 a.m.
• The ordinance should allow for the temporary sales of intoxicating alcohol by
groups.
• The ordinance should not allow for the delivery of alcohol from businesses in
Richfield to private homes.
At their April 13, 2004 worksession, the City Council directed staff to proceed in
presenting the ordinance for a first reading. That first reading has been scheduled
for July 13, 2004.
The ordinance is presented to the City Council for consideration at this time. After
Council has approved the first reading of the ordinance, copies of the ordinance will
be sent to all licensed liquor establishments making them aware of the date of
September 16 for the second reading.
Staff will present an ordinance to rescind sections 1200, 1210, 1215 and 1255; an
ordinance to adopt a new section 1202 which amends and adopts new sections
relating to the sale and consumption of alcoholic beverages; a resolution to rescind
resolution 9204 and adopt a new resolution to clarify the "step back" option; a
resolution to rescind Appendix D and adopt a new Appendix D to add fees for
temporary 3.2 intoxicating malt liquor and on-sale intoxicating liquor licenses; and a
resolution to approve the summary publication of the ordinance at the September
16 meeting.
III. BASIS OF RECOMMENDATION
A. POLICY
• City ordinance requires that any changes to the language of an ordinance
must be brought before the City Council for their consideration and
review.
• Schedule the second reading of the ordinance for September 16, 2004.
B. CRITICAL ISSUES
• Issues relating to 2 a.m. sales have been added.
• Issues relating to the starting time that alcohol can be served on Sundays
have been added.
• Allows for temporary sales of intoxicating alcohol and 3.2 malt liquor.
• Does not allow for delivery of alcohol to private homes by businesses.
C. FINANCIAL
• Identifies fees for the temporary sale of on-sale intoxicating liquor and 3.2
intoxicating malt liquor.
D. LEGAL
• The City Attorney's office has reviewed the document and made any
necessary changes.
IV. ALTERNATNE RECOMMENDATION(S~
• The City Council could decide not to approve the revised alcohol ordinance,
which would mean that it would not be updated or merged from many sections
into one section for easier retrieval for staff, residents and businesses.
V. ATTACHMENTS
• New Ordinance Section 1202
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
BILL NO.
AN ORDINANCE RELATING TO CITY GOVERNMENT;
REPEALING SECTIONS 1200, 1210, 1215, AND 1225 OF THE
RICHFIELD CITY CODE IN THEIR ENTIRETY, AMENDING
CURRENT SECTIONS AND ADOPTING NEW SECTIONS
RELATING TO THE SALE AND CONSUMPTION OF
ALCOHOLIC BEVERAGES
THE CITY OF RICHFIELD DOES ORDAIN:
Section 1. Chapter XII of the Richfield City Code is amended by repealing in their entirety the
following Sections: Sections 1200, 1210, 1215, and 1225.
Section 2. Chapter XII of the Richfield City Code is amended by adding the following new
Section 1202:
Section 1202 - General Provisions: License Applications. Eligibility and Restrictions
1202.01. Definitions. Subdivision 1. The definitions in this subsection will apply when
these words and phrases are used in this chapter.
Subd. 2. "Alcoholic beverage" means any beverage containing more than one-half
of one percent alcohol by volume.
Subd. 3. "City" means the City of Richfield.
Subd. 4. "Club" or "veterans organization" means an incorporated organization
organized under the laws of the state for civic, fraternal, social, or business purposes, for
intellectual improvement, or for the promotion of sports, or a congressionally chartered
veterans' organization, which: (i) has more than 30 members, (ii) has owned or rented a
building or space in a building for more than one year that is suitable and adequate for the
accommodation of its members; (iii) is directed by a board of directors, executive committee, or
other similar body chosen by the members at a meeting held for that purpose. No member,
officer, agent, or employee shall receive any profit from the distribution or sale of beverages to
the members of the club, or their guests, beyond a reasonable salary or wages as may be
fixed and voted each year by the governing body.
Subd. 5. "Commissioner" means the commissioner of public safety of the state of
Minnesota.
Subd. 6. "Director" means the director of public safety or the director's designee.
Subd. 7. "Hotel" means an establishment where food and lodging are regularly
furnished to transients and which has: (i) a dining room serving the general public at tables and
having facilities for seating at least 30 guests at one time; and (ii) not fewer than 25 guest
rooms.
Subd. 8. "Intoxicating liquor" or "liquor" means ethyl alcohol, distilled, fermented,
spirituous, vinous and malt beverages containing more than 3.2 percent of alcohol by weight.
Subd. 9. "Liquor stores" means the municipal liquor stores.
Subd. 10. "Minor" means a person under the age of 21.
Subd. 11. "Off-sale" means the sale of alcoholic beverages in original packages for
consumption off the licensed premises only.
Subd. 12 "On-sale" means the sale of alcoholic beverages for consumption on the
licensed premises only.
Subd. 13. "Restaurant" means an establishment, other than a hotel, under the
control of a single proprietor or manager, where meals are regularly prepared on the premises
and served at tables to the general public, and having appropriate facilities for serving no fewer
than 40 guests at one time.
Subd. 14. The terms "sale" and "sell" and "sold" include and refer to all barters and
all manner of furnishing alcoholic beverages, including such furnishing in violation or evasion
of law.
Subd. 15. "3.2 percent malt liquor" means malt liquor containing not less than one-
half of one percent alcohol by volume nor more than 3.2 percent alcohol by weight.
Subd. 16. "Wine" is the product made from the normal alcoholic fermentation of
grapes, including still wine, sparkling and carbonated wine, wine made from condensed grape
must, wine made from other agricultural products than sound, ripe grapes, imitation wine,
compounds sold as wine, vermouth, cider, perry and sake, in each instance containing not less
than one-half of one percent nor more than 24 percent alcohol by volume for nonindustrial use.
1202.03. State law adopted. Except as modified by this chapter, the provisions of
Minnesota Statutes chapter 340A are adopted by reference.
1202.05. License. Subdivision 1. General rule. No person, except wholesalers or
manufacturers authorized under state license, may directly or indirectly deal in, sell, or keep for
sale any alcoholic beverages without first having received a license to do so as provided in this
section.
Subd. 2. License term. All licenses are effective January 1 through December 31.
Subd. 3. Types of licenses. The following types of licenses will be issued.. by the
City:
(a) 3.2 percent malt liquor.
(1) On-sale. The city may issue on-sale licenses to restaurants, hotels, clubs
and establishments having food licenses, provided that no 3.2 percent malt liquor
manufacturer or wholesaler has any interest in such business. No more than 15
on-sale licenses will be issued.
(2) Off-sale. The city may issue off-sale licenses for the sale of 3.2 percent
malt liquor for consumption off the premises.
(3) Temporary on-sale. The city may issue temporary on-sale licenses to
clubs, or charitable, religious or non-profit organizations for the sale of 3.2
percent malt liquor. A temporary license for the sale of 3.2 percent malt liquor is
effective for a single period of not more than 12 consecutive hours. Only three
temporary licenses may be issued to a single applicant in one calendar year.
(b) Intoxicating liquor.
(1) On-sale. The city may issue on-sale intoxicating liquor licenses only to
hotels, restaurants, and clubs. No more than 10 licenses may be issued,
excluding licenses issued to clubs.
(2) Temporary on-sale. The city may issue temporary licenses for the on-sale
of intoxicating liquor to (a) a club or charitable, religious, or other nonprofit
organization in existence for at least 3 years; (b) a political committee registered
under Minn. Stat. § 10A.14, or (c) a state university in connection with a social
event within the city sponsored by the licensee. The temporary license may
authorize the on-sale of intoxicating liquor for not more than four consecutive
days, and may authorize on-sales on premises other than premises the licensee
owns or permanently occupies. The temporary license may provide that the
licensee may contract for intoxicating liquor catering services with the holder of a
full-year on-sale intoxicating liquor license issued by any municipality.
(3) Additional restrictions on temporary licenses. Temporary licenses for the
on-sale of intoxicating liquor are subject to the following additional restrictions:
(a) The city may not issue more than three four-day, four three-day, six
two-day, or 12 one-day licenses, in any combination not to exceed 12 days per
year to any one organization or registered political committee, or for any one
location, within a 12-month period;
(b) The city may not issue more than one license to any one
organization or registered political committee, or for any one location, within any
30-day period unless the licenses are issued in connection with an event officially
designated a community celebration by the municipality;
(c) If the city issues separate temporary wine and liquor licenses, the
city may separately apply the limitations in paragraphs (a) and (b) to the issuance
of such licenses to any one organization or registered political committee, or for
any one location.
(c) Sunday Sales.
(1) Hotels, restaurants and clubs that hold an on-sale intoxicating liquor
license and that have facilities for serving not less than 40 guests at one time,
may obtain a Sunday sales license and serve alcoholic beverages between the
hours of 10:00 a.m. Sunday and 2:00 a.m. Monday in conjunction with the
serving of food.
(2) No separate public hearing, bond, investigation fee or insurance is
required for a Sunday sales license.
(3) An applicant for a Sunday sales license may adopt, and need not repeat,
the information contained in its on-sale license application, for use in its Sunday
license application.
(d) Wine.
(1) On-sale wine licenses may be issued to restaurants, hotels and clubs.
(2) No more than. seven wine licenses may be issued.
1202.07. License Eligibility. Subdivision 1. Ineligible .person. No license may be granted to
or held by:
(a) any person who is ineligible for a license under state law;
(b) any person who is under the age of 21 years of age;
(c) any person who is not of good moral character and repute;
(d) any person who has had an intoxicating liquor or 3.2 percent malt liquor license
revoked within five years of the license application, or to any person who at the time of
the violation owns any interest, whether as a holder of more than five percent of the
capital stock of a corporation licensee, as a partner or otherwise, in the premises or in
the business conducted thereon, or to a corporation, partnership, association,
enterprise, business, or firm in which any such person is in any manner interested;
(e) any person who, within five years of the license application, has been convicted
of a felony or any willful violation of a federal or state law or local ordinance, governing
the manufacture, sale, distribution, or possession for sale or distribution of an alcoholic
beverage, or whose liquor license has been revoked for any willful violation of any such
laws or ordinances;
(f) any person who has a direct or indirect interest in a manufacturer, brewer or
wholesaler;
(g) any person who is directly or indirectly interested in any other establishment in
the city to which a license has been issued under this chapter; the term "interested" as
used in this paragraph means and includes any pecuniary interest in the ownership,
operation, management or profits of such an establishment;
(h) any person who is the spouse of a person ineligible for a license under this
section; and
(i) any person who, in the judgment of the city council, is not the real party in
interest or beneficial owner of the business operated, or to be operated, under the
license.
Subd. 2. Ineligible places. No license shall be granted to or held by:
(a) any premises upon which taxes or assessments or other financial claims of the
city or of the state are due, delinquent and unpaid. The city council may, upon request
by the applicant or licensee, waive strict compliance with this provision if the applicant
or licensee has contested their tax liabilities or other financial claims through a process
permitted by federal or state regulations or by city ordinance; or is working out debt
problems under the supervision of a bankruptcy court or pursuant to some other formal
agreement. No waiver may be granted, however, if taxes or any portion thereof, remain
unpaid for a period exceeding one year after becoming due; or
(b) any premises owned by a person who is ineligible under this chapter. Premises
are not disqualified if the sole basis for disqualification is that the owner is a minor.
Subd. 3. Specific entities. (a) Corporations. A corporation is ineligible for a license or
a license renewal if any of its officers or managers are ineligible for a license under this
subsection.
(b) Restaurants. A license may not be granted to a restaurant which does not have
a total market value, including land and buildings, of at least $600,000.
(c) Hotels. A license may not be granted to a hotel which does not have a total
market value, including land and buildings, of at least $1,000,000.
(d) Veterans organization or club. A veterans organization or club that does not limit
access to the organization's facilities to members and their bona fide guests is not
eligible for a license.
1202.09. License applications: in general. Subdivision 1. Filing. License applications must
be filed with the director at least 60 days prior to the time that the business will open.
Subd. 2. Contents of application. All license applications must contain the following
information:
(a) Whether the applicant is a natural person, corporation, partnership, or other form
of organization;
(b) The street number where the sale of liquor is to be conducted and the rooms
where liquor is to be consumed; a floor plan of the licensed premises, including all
rooms and areas where liquor is to be consumed;
(c) Financial data acceptable to the city showing the amount of investment that the
applicant has in the business, building, premises, fixtures, furniture, stock in trade and
similar items, and proof of the source of such money;
(d) The names, and addresses of all persons, other than the applicant, who have
any financial interest in the business, buildings, premises, fixtures, furniture, or stock in
trade, including, but not limited to, any lessees, lessors, mortgagees, mortgagors,
lendors, lien holders, trustees, trustors, and persons who have co-signed notes or
otherwise loaned, pledged, or extended security for any indebtedness of the applicant;
and the name of such interest, the amount of the interest; terms for payment or other
reimbursement;
(e) Whether or not all real estate and personal property taxes for the premises to be
licensed have been paid and, if not paid, the years for which such taxes are delinquent;
(f) Copies of any agreements relating to the payment of taxes;
(g) If the application of a license is for premises planned, under construction or
undergoing substantial alteration, the application must be accompanied by a set of
preliminary plans showing the design of the proposed. premises to be licensed, unless
such plans are already on file with the. inspections division of the city;
(h) Proof that the applicant has complied with all of the procedures required under
the zoning regulations of the city to qualify the proposed licensed premises as an
approved location; the council will not act upon an license application until the applicant
has complied with all such regulations and the council has given final approval of the
site and building plans; and
(i) Any other information that the city council requires.
Subd. 3. Additional information: natural persons. If the applicant is a natural person,
the following information shall be furnished:
(a) true name, place and date of birth, and street residence address of the applicant;
(b) whether the applicant has ever used or been known by a name other than the
applicant's true name, and if so, what was such name, or names, and information
concerning dates and places where used;
(c) the name of the business if it is to be conducted under a designation, name or
style. other than the full individual name of the applicant;
(d) whether the applicant is married or single; if married, true name, place and date
of birth and street residence address of the applicant's present spouse;
(e) street addresses at which the applicant and present spouse have lived during the
preceding ten years;
(f) whether the applicant or the applicant's spouse, or the manager and all persons
_ holding or possessing an interest in the business to be licensed, have ever been
convicted for violation of any law of the United. States, State of Minnesota, or any other
state or territory or any municipal ordinance;
(g) whether the applicant or applicant's spouse has ever been engaged as an
employee or in operating a saloon, hotel, restaurant, cafe, tavern or other business of a
similar nature, and if so, the applicant must furnish information as to the time, place and
length of time; _ .
(h) the name, home address and business address of each person who is engaged
in Minnesota in the business of selling, manufacturing or distributing intoxicating liquor
and who is nearer of kin to the applicant or the applicant's spouse than second cousin,
whether of whole or half blood, or who is a brother-in-law or sister-in-law of the applicant
or applicant's spouse.
Subd. 4. Additional information: partnership. If the applicant is a partnership, the
application must provide the names and addresses of all partners and all information
concerning each partner as required under this subsection of a natural person applicant or
corporate applicant, as may be applicable. A managing partner or partners must be
designated, the interest of each partner in the business must be disclosed, and a true copy of
the partnership agreement must be submitted with the application.
Subd. 5. Additional information: corporation. If the applicant is a corporation or
other organization, the following information must be furnished:
(a) the corporate name, and, if incorporated, the state of incorporation;
(b) a true copy of the certificate of incorporation, articles of incorporation or
association agreement and bylaws;
(c) the name of the manager or proprietor or other agent in charge of the premises
to be licensed, giving all the information about said person as is .required of a natural
person in subdivision 3 of this subsection;
(d) a list of all natural persons who, singly or together with their spouse, or a parent,
brother, sister or child of either of them, own or control an interest in said corporation or
association in excess of 5%, or who are officers of said corporation or association,
together with their addresses and all other information required of a natural person in
subdivision 3 of this subsection.
Subd. 6. Execution of application. An application must be executed as follows:
(a) an application by a natural person, by that person;
(b) an application by a corporation, by an officer of the corporation;
(c) an application by a partnership, by a partner;
(d) an application by an incorporated association, by the manager or managing
officer.
1202.11. License fees. Subdivision 1. Amounts. License fees are established by the city
council and are fixed in appendix D to this code.
Subd. 2. Payment. An applicant for any license must pay the total license fee when the
application is filed. License fees will be paid into the general fund of the city. Upon rejection or
withdrawal of any. application for a license, the license fee will be refunded to the applicant
except where rejection or withdrawal is for a willful misstatement in the license application.
Subd. 3. Investigation fee.
(a) In general. At the time of each original application for a license, the applicant
must also pay an investigation fee set by appendix D. If the expenses of the
investigation exceed the investigation fee, the director will notify the applicant and
require the applicant to pay an additional investigation fee as provided in appendix D
which the director deems necessary to complete the. investigation of the applicant. The
applicant must pay any additional investigation fee within five days after notification and
before the license will be issued. If such additional investigation fee is not paid within
the five day period, the city will give no further consideration to the application.
(b) Exceptions. The city will not charge an investigation fee for a Sunday license.
The city will provide a partial or complete waiver of any applicable investigation fee if all
of the following conditions exist:
(1) the applicant is a fraternal, veterans, or charitable organization;
(2) revenues in excess of operating expenses are contributed to the support
of community projects or programs; and
(3) the officers of the organization are elected by and responsible to the
general membership.
Subd. 4. Refunds. No part of a license or investigation fee shall be refunded except in
accordance with this subsection or city council action.
Subd. 5. Additional investigation. If additional investigation is required because of a
change in the ownership, interest or control of a partnership or a corporation, or other reasons
determined necessary by the director, the applicant must pay an additional investigation fee as
provided in appendix D.
1202.13. Liability insurance. Subdivision 1. General requirement. No license may be
issued unless the applicant demonstrates proof of financial responsibility with regard, to liability
imposed by Minnesota Statutes section 340A.801. This subsection also applies to the
municipal liquor stores as described in Section 1220 of-this Chapter.
Subd. 2. Proof of financial responsibility. Proof of financial responsibility must be
submitted to the director at the time of application fora new license or renewal of an existing
license and may be given by filing:
(a) A certificate of insurance that there is in effect an insurance policy issued by an
insurer required to be licensed under Minnesota Statutes section 60A.07, subdivision 4,
or by an insurer recognized as an eligible,. surplus lines carrier pursuant to Minnesota
Statutes section 60A.206 or pool providing at least $300,000 of coverage because of
bodily injury to any one person in any one occurrence, $1,000,000 because of bodily
injury to two or more persons in any-one occurrence, $100,000 because of injury to or
destruction of property of others in any one occurrence, $300,000 for loss of means of
support of any one person in any one occurrence, and $1,000,000 for loss of means of
support of two or more persons in any one occurrence; or
(b) A bond of a surety company with minimum coverages as provided in paragraph
(a); or
(c) A certificate of the state treasurer that the licensee has deposited with the state
treasurer $300,000 in cash or securities which may be purchased by savings banks or
for trust funds having a market value of $300,000.
Subd. 3. Payment and coverage.
(a) The insurance policies must provide that no payment of any claim by the
insurance company will in any manner decrease the coverage provided for any other
claim or claims brought against the insured or the insurer.
(b) The insurance policies must provide coverage for claims arising out of incidents
on both the interior and exterior of the licensed premises.
(c) If the application for a license under this chapter is for a new license or a
renewal, the applicant must provide proof of insurance valid from January 1 through
December 31. If the application is for a license for any portion of a year, the applicant
must provide proof of insurance valid from the date of approval of the license through
December 31.
Subd. 4. Exclusions. The insurance requirements in this subsection do not apply to
licensees who by affidavit establish that:
(a) they are on-sale 3.2 percent malt liquor licensees with sales of less than $25,000
of 3.2 percent malt liquor for the preceding year;
(b) they are off-sale 3.2 percent malt liquor licensees with sales of less than $50,000
of 3.2 percent malt liquor for the preceding year;
(c) they are holders of on-sale wine licenses with sales of less than $25,000 for wine
for the preceding year; or
(d) they are holders of temporary wine licenses issued under law.
Subd. 5. Partnership. In the case of a partnership, any required bond or insurance
policy must be in the name of all partners.
1202.15. Granting of licenses. Subdivision 1. Recommendation by director of public safety.
Applications for licenses will be referred to the director and to such other city departments as
the city manager deems necessary, for verification and investigation of the facts set forth in the
application. The director will make such investigation of the information requested in
subsection 1202.09 as necessary and will make a written recommendation and report to the
council which will include a list of all violations of federal or state law or municipal regulations.
Subd. 2. Public hearin
(a) A public hearing will be held for original applications on annual licenses. Upon
completion of the director's preliminary report, the council will instruct the city clerk to
publish a notice of the hearing in the official newspaper ten days in advance of the
hearing to be held by the city council. The notice must set forth the day, time and place
where the hearing will be held, the name of the applicant, the premises where the
business is to be conducted, and such other information as the council may direct.
(b) At the hearing, opportunity will. be given to any person to be heard for or against
the granting of the license. The applicant or applicant's representative must be present
at the hearing to provide such additional information as may be required by the council.
Failure to be present at the meeting is grounds for denial of the application.
(c) After the hearing, the council may either grant or deny the license. If the council
grants the license, the council may withhold its issuance until the applicant is fully-
qualified for the license. If the premises to be licensed are not complete at the time that
the hearing is conducted, the council may grant the license but will withhold its issuance
until the premises have been completed in accordance with the .representations made
by the applicant. If a license has been granted but its issuance has been withheld
pending completion of the premises to be licensed, and if the licensee does not
complete the premises within a reasonable time, the council may rescind its action
granting the license. Before the council takes such action, however, it must give the
licensee at least eight days' mailed notice of the time and place of a hearing on the
proposed rescission.
1202.17. Renewal applications. Subdivision 1. Time. Applications for the renewal of a license
must be filed with the director at least 60 days prior to the date of the expiration of the license.
If in the judgment of the council good and sufficient cause is shown by any applicant for failure
to file for a renewal within the time provided, the council may, if the other provisions of this
section are complied with, waive this requirement and grant the application.
Subd. 2. Statement for food sales. At the time a restaurant or hotel submits a renewal
application for an on-sale license, the applicant must file with the director a statement made by
a certified public accountant that shows the total alcohol sales and the total food sales of the
restaurant or hotel for the 12-month period immediately preceding the date for filing the
renewal application.
1202.19. Revocation. Subdivision 1. General. The city council may suspend or revoke a
liquor license for the violation of any provision or condition of this section or of any state law or
federal law regulating alcoholic beverages and will revoke a license for any willful violation
which, under state law, is grounds for mandatory revocation.
Subd. 2. Procedure. The city council will follow the revocation and suspension
procedures in Minnesota Statutes, section 340A.415.
1202.21. License restrictions. Subdivision 1. All licenses are subject to the restrictions in this
subsection, unless otherwise provided.
Subd. 2. Hours of operation.
(a) No sale of alcoholic beverages may be made:
(1) between the hours of 2:00 a.m. and 10:00 a.m. on Sunday; and
(2) between the hours of 2:00 a.m. and 8:00 a.m. on Monday through
Saturday.
(b) Any establishment that keeps or sells alcoholic beverages must be closed to the
public by 2:00 a.m. After 2:00 a.m., no person may remain on the premises, except the
owner or licensee, or the owner's or licensee's agents or employees only for the
purpose of cleaning, preparing meals, making repairs or performing other work-related.
duties.
(c) It is unlawful for alcoholic beverages to be drunk or consumed on the licensed
premises during the times when the sale of alcoholic beverages is prohibited. During
the times that such sale is prohibited, no alcoholic beverages are permitted to be on any
table, booth, bar, or other place in the licensed premises.
Subd. 3. Laws and ordinances. All licenses are subject to the provisions of this section
and of any other applicable ordinance or law.
Subd. 4. Posting. The written license must be posted in a conspicuous place in the
licensed premises at all times.
Subd. 5. Conduct. The licensee is responsible for the conduct of the place of business
and for the conditions of sobriety and order in the place of business and on the premises.
Subd. 6. No combination sales.
(a) On-sale licensees may not sell alcoholic beverages off-sale.
(b) No 3.2 percent malt liquor licensee may permit the consumption of intoxicating
liquor on the licensed premises, unless licensed to do so.
Subd. 7. Applicant only. All licenses must be issued to the applicant only.
Subd. 8. No transfer of licenses.
(a) Licenses may not be transferred to a different person, location, or premises.
(b) A transfer is deemed to occur if:
(1) there is a change in the business structure or organization of the licensee,
including, but not limited to, changes in the corporate or association officers,
charter, articles of incorporation, bylaws or partnership agreement;
(2) there is a change in the legal or beneficial ownership of corporate stock
which, together with the interest of a spouse, parent, brother, sister, or child,
involves 5% or more of the corporate stock;
(3) there is a grant of any power of attorney, voting proxy, pledge or other
assignment of the voting rights of corporate stock which will affect alone, or in
conjunction with any other assignment to the same assignee, their spouse,
parents, brother, sister, or child, 5% or more of the voting shares of stock;
(4) there is the creation of any new pecuniary interest in the ownership,
operation, management, or profits of the licensed business; or
(5) there is the existence of any other situation whereby individuals other than
those listed in the original license application acquire a role in the management,
operation or profits of the licensed business.
(c) Upon the occurrence of any corporate change in paragraph (b), a new license
application and required fees containing all of the information required under subsection
1202.09 must be filed with the director.
(d) Notification of any corporate change in paragraph (b) must be submitted to the
director not less than 30 days before such changes are to be made.
Subd. 9. Licensed area. A license shall be issued only for the premises described in
the application and is not effective beyond the compact and contiguous space shown in the
application.
Subd. 10. Employment of Minors.
(a) Except as provided in this subdivision, no person under 18 years of age may be
employed in a place where alcoholic beverages are sold for consumption on the
premises.
(b) Persons under 18 years of age may. be employed as musicians or in bussing or
washing dishes in a restaurant, hotel, club, or other establishment, provided that the
person under the age of 18 may not serve or sell any alcoholic beverages.
(c) No person under 18 years of age may offer for sale, sell, or in any way assist in
the sale of alcoholic beverages for consumption off the premises. This prohibition does
not apply to activities merely incidental to the sale of alcoholic beverages,. such as
stocking shelves or carrying alcoholic beverages from the establishment at a customer's
request.
Subd. 11. Illegal sales. Alcoholic beverages may not be sold, furnished or delivered to
any obviously intoxicated person, to a minor or to any person to whom sale is prohibited by
state law.
Subd. 12. Gambling prohibited. No licensee or any employee of a licensee may keep,
possess, or operate or permit the keeping, possession or operation on the licensed premises,
or in any room adjoining the licensed premises of any gambling device as defined in Minnesota
Statutes, section 349.30, or any gambling device or apparatus which is capable of being used
for unlawful gambling. This subdivision does not prevent lawful gambling on the licensed
premises for which a license has been obtained pursuant to Minnesota Statutes, section
349.16.
Subd. 13. Prostitution. No licensee or any employees may knowingly permit the
licensed premises or a room in those premises or any adjoining building directly or indirectly
under the licensee's control to be used as a resort for prostitutes.
Subd. 14. Nudity.
(a) It is unlawful for any person on premises licensed under this chapter to:
(1) Employ or use any person in the sale or service of alcoholic beverages in
or upon the licensed premises while such person is unclothed or in such attire,
costume or clothing so as to expose or to view any portion of the female breast
below the top of the areola or of any portion of the pubic hair, anus, cleft or the
buttocks, vulva or genitals.
(2) Employ or use services of any host or hostess while such host or hostess
is unclothed or in such attire, costume or clothing as described in paragraph (1)
above.
(3) Employ or use any dancers, musicians or other performers or entertainers,
who are unclothed or in such attire, costume or clothing as described in
paragraph (1) above.
(4) Directly or indirectly sponsor any contests which may foreseeably cause,
result in, or lead to the occurrence of the acts or incidents described in paragraph
(6) below.
(5) Encourage or permit any person. on the licensed premises to touch, caress
or fondle breast, buttocks anus or genitals of any employee of the licensee or any
performers or entertainers who are employed or whose services are used by the
licensee.
(6) Permit any person to perform acts of or-acts which simulate:
a. With or upon another person sexual intercourse, sodomy, oral
copulation, flagellation or any sexual act which is prohibited by law.
b. Masturbation or bestiality.
c. With or upon another person the touching, caressing or fondling of
the buttocks anus, genitals or female breasts.
d. The displaying of pubic hair, anus, vulva, genitals or female breasts
below the top of the areola.
(7) Permit any person to use artificial devices or inanimate objects depicting
any of the prohibited activities described in this subdivision.
(8) Permit any person to remain in or upon the licensed premises, or any area
owned or controlled by the licensee upon the licensee's premise, who permits the
public to view any portion of their genitals or anus.
(9) Permit the showing of film, still pictures, electronic reproduction or .other
visual reproduction depicting:
a. Acts or simulated acts of sexual intercourse, masturbation, sodomy,
bestiality, oral copulation, flagellation or any sexual act which is prohibited
by law.
b. Any person being touched, caressed or fondled on the breast,
buttock, anus, or genitals.
c. Scenes wherein a person displays the vulva, the anus or the
genitals.
d. Scenes wherein artificial devices or inanimate objects are
employed to depict, or drawings are employed to portray, any of the
prohibited activities described in this subdivision.
(b) The provisions of this subdivision do not apply to any theatrical production
performed in a theater by a professional theatrical or musical company which has
serious artistic merit.
(c) Both the licensee and the person(s) actually engaging in any of the acts
prohibited by paragraph (a) of this subdivision will be criminally liable. Any violation of
this subdivision will also constitute grounds for revocation or suspension of the
licensee's license.
Subd. 15. Inspections.
(a) A properly designated officer or employee of the city may enter, inspect and
search the licensed premises during business hours without a warrant.
(b) A properly designated officer or employee of the city may inspect the business
records of the licensee, including federal and state tax returns, at all reasonable times.
Subd. 16. Display. No licensed. establishment may display alcoholic beverages to the
public during hours when the sale of liquor is prohibited by this chapter.
Subd. 17. Federal stamp. A licensee may not apply for or possess a federal wholesale
or retail liquor dealer's special tax stamp or a federal gambling stamp.
Subd. 18. Restaurants and hotels. Restaurants and hotels licensed under this chapter
must be conducted such that of the total alcohol and food sales, more than fifty (50) percent of
that total is derived from business activities related to the serving of food.
Subd. 19. Notice reauired.
(a) All licensed establishments, and municipal liquor stores, must post and maintain
in a conspicuous place within the licensed premises clearly visible to consumers: one sign 14
- '/2 inches wide. by 8 inches high as designed by the commissioners of health and public
safety, which incorporates the following information:
(1) the penalties of driving while under the influence of alcohol;
(2) the penalties for serving alcoholic beverages to a person who is obviously
intoxicated or under 21 years of age; and
(3) a warning statement regarding drinking alcohol while pregnant.
(b) The licensee or municipal liquor store may not modify the sign as designed by
the commissioners of health and public safety, but may modify the color of the sign.
Subd. 20. Original package. A licensee may not sell, offer for sale, or keep for sale,
~Icoholic beverages in any original package which has been refilled or partly refilled. No
licensee may in any manner tamper with the contents of an original package so as to change
its composition or alcoholic content while in the original package. Possession on the premises
by the licensee of any alcoholic beverage in the original package differing in the composition or
alcoholic content in the liquor when received from the manufacturer or wholesaler from whom it
was purchased will be rp ima facie evidence that the contents of the original package has been
diluted, changed or tampered with.
Subd. 21. Delivery prohibited. Licensed establishments may not deliver alcoholic
beverages off the licensed premises.
1202.23. Enlargement, alteration or extension of licensed premises. The proposed
enlargement, alteration or extension of any licensed premises must be reported to the director
at or before the time an application is made for a building permit for the change: The licensee
must also provide any additional information as required by subsection 1202.09.
Section 3. Chapter XII of the Richfield City Code is amended by adding the following new
Section 1204:
Section 1204 -Minors
1204.01. Adoption of state law. Minnesota Statutes sections 340A.503 and 340A.412,
subdivision 10 are adopted by reference and apply to all retail liquor establishments, including
the municipal liquor stores.
1204.03. Restrictions involving minors. Subdivision 1. General prohibitions. No licensee, its
agent or employee or a municipal liquor store, may sell, serve, or dispense alcoholic
beverages to a minor. No licensee, its agent or employee or a municipal liquor store, may
permit a minor to be furnished or to consume any alcoholic beverages on the licensed
premises.
Subd. 2. Giving or procuring for minors. No person may give, procure or purchase,
alcoholic beverages for a minor.
Subd. 3. Inducing. No person may induce a minor to purchase or procure alcoholic
beverages, unless the inducement is related to a legitimate law enforcement purpose.
Subd. 4. Possession. No minor may be in possession of any alcoholic beverage for.
his or her own consumption or for consumption by any other person. Possession by a minor of
any alcoholic beverage will create a rebuttable presumption of intent to consume.
Subd. 5. Misrepresentation of age. No minor may misrepresent his or her age for the
purpose of obtaining or purchasing alcoholic beverages.
Section 4. Chapter XII, Section 1205 of the Richfield City Code is amended as follows:
Section 1205 -Consumption and display
1205.01. Statutes adopted by reference. Minnesota Statutes section 340A.414 regulating
the licensing of establishments for the consumption and display of intoxicating liquor is
adopted by reference.
Section 5. Chapter XII of the Richfield City Code is amended by adding the following new
Section 1208:
Section 1208 -Specific Conditions for Intoxicating Liquor Licenses
1208.01. Employee Licenses. Subdivision 1. General Rule. All employees of a premises
__ licensed under this section, including, but not limited to, managers, bartenders, and wait
persons, who serve or dispense alcoholic beverages in any manner must be licensed by the
city. An employee must apply for the license within seven days after being first employed.
Subd. 2. Application. An employee must complete the application provided by the city.
The application must contain the following information:
(a) a history of the applicant's addresses for the last five years;
(b) the record, if any, of any arrests and convictions for crimes and misdemeanors,
other than traffic offenses.
Subd. 3. Review of application. The director will review and investigate the facts in the
application, and either approve or deny the license. If the director approves the license, it will
be issued immediately. If the director denies the license, the applicant may request a hearing
before the city council and may offer evidence to show that the license should be issued.
Subd. 4. Ineligibility for license. If, within ten (10) years of the license application, the
applicant has been convicted of a felony or any willful violation of a federal or state law or local
ordinance, governing the manufacture, sale, distribution, or possession for sale or distribution
of an alcoholic beverage, or has knowingly falsified information in the application, the applicant
is not eligible for a license.
Subd. 5. Revocation. The city may revoke an employee's license for any violation of
this chapter or Minnesota Statutes section 340A, or for any conviction of any crime or
misdemeanor involving moral turpitude.
Subd. 6. License term. An employee license is valid for two years from its issuance.
Subd. 7. License fee. The fee for an employee license is set by the city council and is
as provided in appendix D to this code.
Section 7. Chapter XII, Section 1220 of the Richfield City Code is amended as follows:
Section 1220 -Municipal liquor stores
1220.03. Liauor stores established and continued. The municipal liquor stores,
established pursuant to council resolution dated January 30, 1943, are hereby established and
continued.
1220.05. Locations. The liquor stores will be located at a suitable place or places in the
city as the council determines. The location sites and facilities may be either leased or owned
by the city.
1220.07. :Regulations; liquor operations director established. The liquor stores will be in
the immediate charge of the liquor operations director. Policies relating to the operation of the
liquor stores will be determined by the city council. The liquor operations director will be
assisted by such other employees as the council may authorize. The liquor operations director
will have full charge of the liquor stores and will have authority to purchase supplies as are
necessary.
1220.09. Hours of business. The liquor stores may be open for business only during the
days and hours authorized by state law.
1220.11. Limitations. No business other than the sale of alcoholic beverages and other
items offered for sale at the liquor stores may be carried on by the liquor operations director
and employees while they are so employed.
1220.13. Payment for merchandise. Checks may be accepted in payment for
merchandise, in the discretion of the liquor operations director, provided such checks are for
_ the purchase price of the merchandise only. Credit cards issued by national credit companies
which have entered into credit agreements with the city, may also be accepted in payment for
- merchandise, in the discretion of the liquor operations director. No other form of credit may be
advanced by the liquor stores.
1220.15. Clean conditions required. The liquor stores must be kept in a clean and sanitary
condition.
1220.17. Consumption on premises prohibited. No alcoholic beverages may be sold for
consumption on liquor store premises.
1220.19. Loitering prohibited. Habitual loitering about a liquor store is prohibited.
1220.21. Delivery prohibited. Alcoholic beverages may not be sold or delivered by liquor
store employees or any agents thereof, except on the liquor store premises.
1220.23. Liquor store fund. The liquor store fund established pursuant to council
resolution dated January 30, 1943, is hereby established and continued. All revenues
received from the operation of the liquor stores will be paid into such fund and all operating
expenses will be paid out of such fund, subject to the provisions of the city charter.
1220.25. Sale prohibited. Intoxicating liquor may not be sold off-sale at retail, or by any
liquor store employee, in the city except at the liquor stores.
Adopted this day of , 2004.
Martin J. Kirsch, Mayor
ATTEST:
Nancy Gibbs, City Clerk