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05-27-03 agendaCITY OF RICHFIELD, MINNESOTA TUESDAY, MAY 27, 2003 SPECIAL CITY COUNCIL WORKSESSION COUNCIL CHAMBERS 6700 PORTLAND AVENUE 5:30 P.M. Call to order Roll call Minnesota Department of Transportation 3-D visual presentation to City Council and Transportation Committee on proposed I-35W/I-494 interchange Adjournment 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 opportunity to address the Council on items not on the agenda. Individuals who wish to address the Council must have registered prior to the meeting. Notes: Pledge of Allegiance Approval of minutes of (1) Special City Council Meeting of May 13, 2003 and (2) Regular City Council Meeting of May 13, 2003 PRESENTATIONS 1. Presentation of proclamation designating May 26-30, 2003 as Small Business Week in Richfield 2. Presentation of proclamation designating June 2003 as Arbor Month in Richfield 8. Public hearing and second reading of franchise ordinance and agreement with ~ Centerpoint/Minnegasco allowing and setting terms for Centerpoint's use of City right- of-way Staff Report No. 120 Notes: - -. ..QTHER,BUSINESS 9. Consideration of special request for sign of unusual height or location for new scoreboard sign with advertising panels at Donaldson Park and waiving required application fee for making special request to City Council Staff Report No. 121 Notes: 10. Consideration of bids and award of contract to Hamline Construction, Inc. for remodeling Richfield Community Center in amount of $306,250 Staff Report No. 122 Notes: 11. Consideration of City Council Member liaison appointment to Transportation Committee Staff Report No. 123 Notes: RESOLUTION 12. Consideration of resolution ratifying HRA Resolution No. 896 authorizing internal loan for Lyndale Gateway West Redevelopment Project Staff Report No. 124 Notes: CITY OF RICHFIELD, MINNESOTA TUESDAY, MAY 27, 2003 SPECIAL CITY COUNCIL WORKSESSION COUNCIL CHAMBERS 6700 PORTLAND AVENUE 5:30 P.M. Call to order Roll call Minnesota Department of Transportation 3-D visual presentation to City Council and Transportation Committee on proposed I-351N/I-494 interchange Adjournment 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 opportunity to address the Council on items not on the agenda. Individuals who wish to address. the Council must have registered prior to the meeting, Notes: Pledge of Allegiance Approval of minutes of (1) Special City Council Meeting of May 13, 2003 and (2) Regular City Council Meeting of May 13, 2003 PRESENTATIONS 1. Presentation of proclamation designating May 26-30, 2003 as Small Business Week in Richfield 2. Presentation of proclamation designating June 2003 as Arbor Month in Richfield COUNCIL DISCUSSION 3. Council discussion • Hats Off To Hometown Hits Notes: .. , _ .: AG€NDA =APPROVAL 4. Council approval of agenda CONSENT CALENDAR 5. Consent Calendar contains several separate items which are acted upon by the City Council in one motion. Once the Consent Calendar has .been approved, the individual items and recommended actions have also been approved. No further Council action is necessary. However, any Council Member may request that an item be removed from the Consent Calendar and placed on the regular agenda for Council discussion and action. All items listed on the Consent Calendar are recommended for approval. A. Consideration of approval of new motor vehicle dealer license for Interstate Auto Group, Inc. d/b/a CarHop Auto Sales & Finance, 6529 Penn Avenue, with stipulation that new temporary conditional use permit approved by City Council on June 24, 2003 S.R. No. 118 Notes: 6. Consideration of items, if any, removed from Consent Calendar Notes: PUBLIC HEARINGS 7. Public hearing and second reading of transitory ordinance vacating public right-of-way in 6500 block of Xerxes Avenue Staff Report No. 119 Notes: 8. Public hearing and second reading of franchise ordinance and agreement with ~~ Centerpoint/Minnegasco allowing and setting terms for Centerpoint's use of City right- -- of-way Staff Report No. 120 Notes: _ - _. ._ __ _..OTHER-,BUSIAIESS _ 9. Consideration of special request for sign of unusual height or location for new scoreboard sign with advertising panels at Donaldson Park and waiving required application fee for making special request to City Council Staff Report No. 121 Notes: 10. Consideration of bids and award of contract to Hamline Construction, Inc. for remodeling Richfield Community Center in amount of $306,250 Staff Report No. 122 Notes: 11. Consideration of City Council Member liaison appointment to Transportation Committee Staff Report No. 123 Notes: RESOLUTION 12. Consideration of resolution ratifying HRA Resolution No. 896 authorizing internal loan for Lyndale Gateway West Redevelopment Project Staff Report No. 124 Notes: ,~ CITY MANAGER'S REPORT Notes: 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-~peak~r- is trrkeep-#heircnmment-period to -three mint~t~s ~#fl allow sufficient time for others. Comments are to be an opportunity to address the Council on items not on the agenda. Individuals who wish to address the .Council must have registered prior to the meeting. Notes: 13.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: Resolution AGENDA ITEM # 12 REPORT# 19G STAFF REPORT CITY COUNCIL MEETING MAY 27, 2003 REPORT PREPARED BY: JOHN STARK, COMMUNITY DEVELOPMENT MANAGER NA,~fE, TITLE COUNCIL PRESENTER: ACTING DEPARTMENT DIRECTOR REVIEW: G% l~~ ~ SIGNATURE REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION:. Consideration of the attached resolution ratifying an HRA Resolution authorizing an internal loan for the Lyndale Gateway West Redevelopment Project. I. RECOMMENDED ACTION: By Motion: Adopt the attached resolution approving HRA Resolution No. 896, authorizing Internal Loan for the Lyndale Gateway Redevelopment Project. II. BACKGROUND • On May 19, 2003, the Housing and Redevelopment Authority in and for the City of Richfield (Richfield HRA) adopted HRA Resolution No. 896, authorizing an internal loan for the advance of public redevelopment costs in connection with the Lyndale Gateway West Tax Increment Financing (TIF) District. • The purpose of this HRA Resolution was to allow tax increment that will be generated in the Lyndale Gateway West TIF District to repay a loan from the Interstate-Lyndale-Nicollet (ILN) TIF District. • The loan from the ILN TIF District is in the amount of $1.1 million. The developer is to pay back $500,000 of the loan with the remaining $600,000 plus interest to be repaid by the new project's tax increment. 052703Lynd • The loan funds are already fully committed; the HRA resolution simply identifies and approves the use of TIF from the Lyndale Gateway West TIF District as a repayment source for the funds that originated in the ILN TIF District. • State Statute requires the City Council to formally consider and approve all resolutions for interfund loans between TIF District. III. BASIS OF RECOMMENDATION A. POLICY • The Richfield HRA adopted HRA Resolution No. 896, authorizing an internal loan for the advance of public redevelopment costs in connection with the Lyndale Gateway West Tax Increment Financing. District. State statute requires the City Council to formally consider and approve all resolutions for interfund loans between TIF District. B. CRITICAL ISSUES • The internal loan is essential to the financial success of the project. C. FINANCIAL • The loan from the ILN TIF District is in the amount of $1.1 million. The developer is to pay back $500,000 of the loan. with the remaining $600,000 plus interest to be repaid by the new project's tax increment. • The loan funds are already fully committed; the HRA resolution simply identifies and approves the. use of TIF from the Lyndale Gateway West TIF District as a repayment source for the funds that originated in the ILN TIF District. D. LEGAL • Legal counsel prepared the attached resolution. IV. ALTERNATIVE RECOMMENDATION~S~ • Continue the discussion of this item to a future City Council meeting if further clarification is sought. V. ATTACHMENTS • Resolution approving HRA Resolution No. 896 (Attachment A) • Copy of HRA Resolution No. 896 (Attachment B) VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None. ATTACHMENT A RESOLUTION NO. RESOLUTION AUTHORIZING RESOLUTION APPROVING HRA RESOLUTION NO.896, REGARDING AN INTERFUND LOAN FOR THE LYNDALE GATEWAY WEST REDEVELOPMENT PROJECT WHEREAS, on May 19, 2003, the Richfield HRA did approve its resolution No. 896 Authorizing an Internal Loan for Advance of Public Redevelopment Costs in Connection with the Lyndale Gateway West Tax Increment Financing District; and WHEREAS, pursuant to Minnesota Statute 469.178 Subdivision 7, all such resolutions must be approved by the governing body of the municipality prior to the advance transferor expenditure of such interfund loan; and WHEREAS, the City Council has fully reviewed HRA Resolution No. 896 and is fully aware of its contents. NOW, THEREFORE, BE IT RESOLVED, that HRA Resolution No. 896 is hereby approved. 2003. Adopted by the City Council of the City of Richfield, Minnesota this 27th day of May, Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk ~ ATTACHMENT B HRA RESOLUTION N0.896 AUTHORIZING INTERNAL LOAN FOR ADVANCE OF PUBLIC REDEVELOPMENT COSTS IN CONNECTION WITH LYNDALE GATEWAY WEST TAX INCREMENT FINANCING DISTICT. BE IT RESOLVED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA (the "Authority") AS FOLLOWS: Section 1. Back rg ound. 1.01. Pursuant to Minnesota Statutes, Sections 469.174 to 469.179 (the "TIF Act") the Authority previously established the Lyndale Gateway West Tax Increment Financing District (the "TIF District") within the Richfield Redevelopment Project Area (the "Project Area"). 1.02. The Authority may incur certain costs related to the TIF District, which costs may be financed on a temporary basis from available funds in the account for other tax increment financing ~ districts administered by the Authority, or from other Authority funds available for such purposes. 1.03. Under Section 469.178, Subdivision 7 of the TIF Act, the Authority is authorized to advance or loan money from any fund from which such advances may be legally made in order to fmance expenditures that are eligible to be paid with tax increments under the TIF Act. 1.04. The Authority has approved and the parties have executed a Contract for Private Redevelopment (the "Contract") and a Supplemental Agreement to Contract for Private Redevelopment (the "Supplement") between the Authority and Lyndale Gateway LLC, ("Redeveloper") (collectively the "Agreements") under which the Authority will provide the Redeveloper proceeds from an interfixnd loan fund to finance certain Public Development Costs as defined in the Contract. 1.05. Under the Agreements, the Authority will disburse Public Redevelopment Costs in the amount of up to $7,710,000, subject to the terms and conditions of the Agreements. Of that amount, $1,100,000 will be financed on a temporary basis and subject to reimbursement as set out in this resolution. 1.06. The Authority intends that $1,100,000 of the Public Redevelopment Costs will be financed on a temporary basis as an interfiand loan (the "Loan") and be repaid in accordance with the terms of this resolution. Section 2. Repayment of Public Redevelopment Costs. 2.01. The Authority will reimburse itself for the Loan in the principal amount of $1,100,000 together with interest at the rate of 5.0% per annum accruing from the date of closing the Contract JKP-216561 v 1 BU235-49 ~`~ (hereafter, the "Closing Date"). The interest rate is no more than the greatest of the rate specified under Minnesota Statutes, Section 270.75 and Section 549.09, both in effect for calendar year 2003. 2.02. Principal and interest ("Payments") on the Loan shall be paid semi-annually on the dates (each a "Payment Date"), and in the amounts specified in Exhibit A hereto. 2.03. Payments on the Loan will be made from Available Tax Increment as defined in the Agreements after first deducting from tax increment receipts amounts necessary to pay principal and interest on the Bonds; and from amounts received from the Developer under Section 7 of the Supplement. Payments shall be applied first to accrued interest, and then to unpaid principal. Interest accruing from the Closing Date will be compounded semiannually on February 1 and August 1 of each year and added to principal, unless otherwise specified by the Executive Director. 2.04. The principal sum and all accrued interest payable under this resolution is pre- payable in whole or in part at any time by the Authority without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under Exhibit A. 2.05. The Public Redevelopment Costs are evidence of an internal borrowing by the Authority in accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely from tax increment and other funds pledged to the payment hereof under ~, this resolution. The Loan shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority and the City of Richfield. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on the Public Redevelopment Costs or other costs incident hereto except from the sources described in this resolution. 2.06. The City Chief Financial Officer is authorized and directed to determine the fund(s) or account(s) from which monies are drawn for the interfund loan, and to credit repayments under this to the relevant fund(s) or account(s). 2.07. Authority staff and officials are authorized and directed to execute any collateral documents and take any other actions necessary to carry out the intent of this resolution. 2.08. The Authority may at any time determine to forgive the outstanding principal amount and accrued interest on the Public Redevelopment Costs to the extent permissible under law. 2.09. The Authority may from time to time amend the terms of this Resolution to the extent permitted by law, including without limitation amendment to the payment schedule and the interest rate; provided that the interest rate may not be increased above the maximum specified in Section 469.178. subd. 7 of the TIF Act. Section 3. Effective Date. This resolution is effective upon approval, provided, however, that the interfund loan will not be made until all of the preconditions of the Supplement have been _ satisfied or waived by the Authority. JKP-216561 v 1 BU235-49 Approved by the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this day of , 2003. Chair ATTEST: Secretary JKP-216561v1 BU235-49 '~ I 05/20/2003 Page 1 of 1 EXHIBIT A Inter Fund Loan Payment Schedule INTERFUND INTERFUND INTERFUND INTERFUND LOAN LOAN LOAN LOAN PAYMENT DATE Beginning Period $600,000 $500,000 $500,000 TOTAL Ending Period Principal and Interes Principal Only Interest Only rincipal and Interest Yrs. Mth. Yr. 5.00% 500,000 5.00% Yrs. Mth. Yr. 0.0 02-01 2002 0.5 08-01 2002 0.5 08-01 2002 1.0 02-01 2003 1.0 02-01 2003 0.00 0.00 0.00 0.00 1.5 08-01 2003 1.5 08-01 2003 0.00 0.00 0.00 0.00 2.0 02-01 2004 2.0 02-01 2004 0.00 0.00 0.00 0.00 2.5 08-01 2004 2.5 08-01 2004 0.00 0.00 0.00 0.00 3.0 02-01 2005 3.0 02-01 2005 0.00 0.00 0.00 0.00 3.5 08-01 2005 3.5 08-01 2005 0.00 0.00 0.00 0.00 4.0 02-01 2006 4.0 02-01 2006 0.00 0.00 0.00 0.00 4.5 08-01 2006 4.5 08-01 2006 0.00 0.00 0.00 0.00 5.0 02-01 2007 5.0 02-01 2007 0.00 0.00 0.00 0.00 5.5 08-01 2007 5.5 08-01 2007 0.00 0.00 0.00 0.00 6.0 02-01 2008 6.0 02-01 2008 (27,500.00) 0.00 0.00 (27,500.00) 6.5 08-01 2008 6.5 08-01 2008 0.00 0.00 0.00 0.00 7.0 02-01 2009 7.0 02-01 2009 (27,500.00) 0.00 0.00 (27,500.00) 7.5 08-01 2009 7.5 08-01 2009 0.00 0.00 0.00 0.00 8.0 02-01 2010 8.0 02-01 2010 (33,000.00) 0.00 0.00 (33,000.00) 8.5 08-01 2010 8.5 08-01 2010 0.00 0.00 0.00 0.00 9.0 02-01 2011 9.0 02-01 2011 (39,300.00) 0.00 0.00 (39,300.00) 9.5 08-01 2011 9.5 08-01 2011 0.00 0.00 0.00 0.00 10.0 02-01 2012 10.0 02-01 2012 (38,300.00) 0.00 0.00 (38,300.00) 10.5 OS-01 2012 10.5 08-01 2012 0.00 (500,000.00) 0.00 (500,000.00) 11.0 02-01 2013 11.0 02-01 2013 (40,700.00) 0.00 0.00 (40,700.00) 11.5 08-01 2013 11.5 08-01 2013 0.00 0.00 0.00 0.00 12.0 02-01 2014 12.0 02-01 2014 (40,000.00) 0.00 0.00 (40,000.00) 12.5 OS-01 2014 12.5 08-01 2014 0.00 0.00 0.00 0.00 13.0 02-01 2015 13.0 02-01 2015 (43,000.00) 0.00 0.00 (43,000.00) 13.5 08-01 2015 13.5 08-01 2015 0.00 0.00 0.00 0.00 14.0 02-01 2016 14.0 02-01 2016 (46,000.00) 0.00 0.00 (46,000.00) 14.5 08-01 2016 14.5 08-01 2016 0.00 0.00 0.00 0.00 15.0 02-01 2017 15.0 02-01 2017 (52,000.00) 0.00 0.00 (52,000.00) 15.5 08-01 2017 15.5 08-01 2017 0.00 0.00 0.00 0.00 16.0 02-01 2018 16.0 02-01 2018 (52,000.00) 0.00 0.00 (52,000.00) 16.5 08-01 2018 16.5 08-01 2018 0.00 0.00 0.00 0.00 17.0 02-01 2019 17.0 02-01 2019 (58,000.00) 0.00 0.00 (58,000.00) 17.5 08-01 2019 17.5 08-01 2019 0.00 0.00 0.00 0.00 18.0 02-01 2020 18.0 02-01 2020 (66,000.00) 0.00 0.00 (66,000.00) 18.5 08-01 2020 18.5 OS-01 2020 0.00 0.00 0.00 0.00 19.0 02-01 2021 19.0 02-01 2021 (69,000.00) 0.00 0.00 (69,000.00) 19.5 08-01 2021 19.5 08-01 2021 0.00 0.00 0.00 0.00 20.0 02-01 2022 20.0 02-01 2022 (73,000.00) 0.00 0.00 (73,000.00) 20.5 08-01 2022 20.5 08-01 2022 0.00 0.00 0.00 0.00 21.0 02-01 2023 21.0 02-01 2023 (74,500.00) 0.00 0.00 (74,500.00) 21.5 08-01 2023 21.5 08-01 2023 0.00 0.00 0.00 0.00 22.0 02-01 2024 22.0 02-01 2024 (77,400.00) 0.00 0.00 (77,400.00) 22.5 08-01 2024 22.5 08-01 2024 0.00 0.00 0.00 0.00 23.0 02-01 2025 23.0 02-01 2025 (204,000.00) 0.00 0.00 (204,000.00) 23.5 08-01 2025 23.5 08-01 2025 (200,000.00) 0.00 0.00 (200,000.00) 24.0 02-01 2026 24.0 02-01 2026 (156,293.00) 0.00 (10,000.00) (166,293.00) 24.5 08-01 2026 24.5 08-01 2026 0.00 0.00 (167,000.00) (167,000.00) 25.0 02-01 2027 25.0 02-01 2027 0.00 0.00 (73,000.00) (73,000.00) 25.5 08-01 2027 25.5 08-01 2027 0.00 0.00 0.00 0.00 26.0 02-01 2028 26.0 02-01 2028 0.00 0.00 0.00 0.00 26.5 08-01 2028 26.5 08-01 2028 0.00 0.00 0.00 0.00 27.0 02-01 2029 27.0 02-01 2029 0.00 0.00 0.00 0.00 27.5 08-01 2029 27.5 08-01 2029 0.00 0.00 0.00 0.00 28.0 02-01 2030 1,417,493.00 500,000.00 250,000.00 2,167,493.00 (600,000.17) (500,000.00) (1,100,000.17) Prepared by Ehlers Inc. -Please review all assumptions. Interfund loan payment.xls AGENDA SECTION: Other Business AGENDA ITEM # 11 REPORT # 123 J STAFF REPORT CITY COUNCIL MEETING MAY 27, 2003 REPORT PREPARED BY: THOMAS FOLEY, TRANSPORTATION ENGINEER NAnfE; T/TLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: ~' ~~~ SIGNATURE REVIEWED BY CITY MANAGER: ~ ~ j~ ITEM FOR COUNCIL CONSIDERATION: Consideration of appointment of City Council liaison to the Transportation Committee. I. RECOMMENDED ACTION: By Motion: Appoint a Council Member as liaison to the Transportation Committee. III. BACKGROUND ~ The Council should consider appointing a Council Mmber to serve as liaison to the City's newly formed Transportation Committee. The new committee has not yet determined its regular monthly meeting date. Meetings would start at 7 p.m. Most meetings will be held at City Hall. III. BASIS OF RECOMMENDATION A. POLICY • To improve, communication between the Council and advisory groups, Council has traditionally appointed a liaison person to each group. 0527Liaison-TranspCom B. CRITICAL ISSUES • None. C. FINANCIAL • The City budget is not affected by appointing a liaison to the Transportation Committee. D. LEGAL • There is no legal issue .involved .with appointing a liaison to the Transportation Committee. IV. ALTERNATIVE RECOMMENDATION~S~ • Council may choose not to appoint any liaison to the committee. V. ATTACHMENTS • None. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None anticipated. AGENDA SECTION AGENDA ITEM # REPORT # ~~ STAFF REPORT CITY COUNCIL MEETING MAY 27, 2003 OTHER BUSINESS 10 122 REPORT PREPARED BY: JIM TOPITZHOFER, RECREATION SERVICES DIRECTOR NAME, TITLE REPORT PRESENTER: NAME, TITLE DEPARTMENT DIRECTOR REVIEW: SIGNATURE REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of acceptance of bids and award of contract to Hamline Construction, Inc. in the amount of $306,250 for the remodeling of the Richfield Community Center. I. RECOMMENDED ACTION: By Motion: Accept bids and award the attached contract to Hamline Construction, Inc. in the amount of $306,250, for the remodeling. of the Richfield Community Center. III. BACKGROUND ~ The 42 year-old Richfield Community Center is long overdue for improvements. The building is in dire need of mechanical upgrades, new surface materials, .paint and wall repair, light fixture replacement and other general remodeling. The building also has some code issues relating to accessibility and food handling. A task force was formed from members of the Community Services Commission and the Inter-Council to study the project and concluded that services currently provided at the Center could be accommodated without a major renovation or addition to the building. A Request for Proposal was advertised for architectural services to prepare a preliminary report for the remodeling of the Community Center. Oertel Architects was selected and began 0527 com ctr contract __~ consulting with members of the Community Center Task Force. Oertel Architects presented the preliminary report to the Community Services Commission on January 21, 2003, including floor plans, improvement description, and cost estimates. The Community Services Commission voted unanimously to recommend the City Council to contract further architectural services of Oertel Architects and to proceed with the improvements. The preliminary plan was presented to the Richfield City Council on February 11, 2003. City Council then approved a contract with Oertel Architects to proceed with plans and specifications. City Council approved the plans and specifications on April 22, 2003. The following items were included in the. project specifications and bid contract: Carpet, interior paint, some exterior paint, new ceiling grids & panels, additional light fixtures, 10 computer stations, operable partitions, hazardous material abatement, two additional exterior windows, vaulted ceiling in the general room, mechanical improvements and ADA compliance. The following items were included as add-alternates, giving-the City the ability to select each item based on bid price: Covered entrance walkway, kitchen hood, outdoor patio & retaining wall, and skylight. The following items will be handled outside the construction contract to lower costs: A new chemical dishwasher, program computers with security cabinets, lobby furniture, literature racks, tables & chairs, landscaping, storage organizers, waste receptacles, blinds, and audio relocation. The project schedule sets up an aggressive time-line to complete the work during the summer months. All Community Center programming and "rentals have been directed off-site to allow the contractor to complete the work efficiently and at less cost than if the building were fully occupied. Sealed bids were opened on Thursday, May 15 (see attached bid tabulation). Lowest bid was offered by Hamline Construction in the amount. of $306,250.00. III. BASIS OF RECOMMENDATION A. POLICY On April 22, City Council approved plans, specifications, and advertisementfor-bid for the project. City Council approved capital improvement funds for this project in the amount of $340,000 on December 10, 2002. B. CRITICAL ISSUES In order to minimize the disruption of programs, services and rentals at the Community Center, it is important for the project to stay on schedule. The attached project schedule indicates construction start date at May 28, 2003. C. FINANCIAL The total budget for the construction and all the above items handled outside the construction contract. is $408,500. Sources of funds include capital improvement funds in the amount of $340,000,. and donations in the amount of $68,500. Special Revenue $ 340,000 Donations $ 68,500 Total Funding $ 408,500 The following items will be handled outside the construction contract to lower costs: Computers (5) $ 6,750 Computer Cabinets $ 4,650 Computer Room Chairs $ 650 Kitchen Dishwasher $ 4,000 Front Area Furniture $ 3,200 Main Lobby Furniture $ 2,000 Literature Displays (2) $ 800 Brochure Displays (9) $ 3,100 Round Tables (16) $ 3,500 Lower Level Chairs (150) $ 3,300 Landscaping $ 2,000 Storage Organizers $ 1,400 Waste Receptacles $ 500 Blinds -Community Room $ 3,340 Blinds -Lower Level $ 500 Audio Relocation $ 500 Total $ 40,190 A summary of the total project includes the base bid (less a credit for computer millwork to be replaced with portable security cabinets), a 10% contingency, 10% design costs as per contract, and the above outside purchases: Contract Base Bid $ 306,250 Less Computer Millwork $ (10,000) 10% Contingency $ 36,030 10 % Design Costs $ 36, 030 Outside Purchases $ 40,190 Total Project Cost $ 408,500 The following base bids were received at the bid opening on May 15: CM Construction $337,337 Lund Martin Construction $378,500 Greystone Construction $323,669 Merrimac Construction $338,662 JS Cates Construction $353,000 Arkay Construction $345,000 .Prestige Builders $369,000 Hamline Construction $306,250 DNR Construction $337,789 Hunerberg Construction $339,000 Ebert, Inc. $323,800 Dosco Design Build $353,680 Based upon the bid amounts, it is recommended that the contract be awarded to Hamline Construction, Inc. in the amount of $306,250.. Staff recommends including no bid. alternates. -~ D. LEGAL • Sealed bids were opened on Thursday, May 15, 2 p.m., in the Richfield Council Chambers. • On the day of the bid opening, three bids were received that were stamped "received" at 2:00 p.m. Two additional bids were stamped at 2:01 p.m. Because the advertisement for bidders included instruction fora 2:00 bid opening, the question arose to accept the bids stamped at 2:00 p.m. and 2:01 p.m.. The City attorney directed staff to accept all the bids and to read the tabulations because there was no perceived advantage given to the late bidders in her opinion. After bids were tabulated, the low bid was one of the bids stamped received at 2:00 p.m. The validity "-of these bids has been challenged by one'of the bidders (see attached protest from Greystone Construction). The City Attorney responded to the protest in the attached letter. • Each contractor is required to submit a performance and payment bond based upon the contract dollar amount. • City Attorney Corrine Thomson reviewed the attached contract agreements. • Each contractor has signed an affidavit of non-collusion. IV. ALTERNATIVE RECOMMENDATION(S~ None V. ATTACHMENTS ^ Contract Agreements ^ Bid Tabulation - Project Schedule ^ Letter of Protest from Greystone Construction and Response Letter VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Jeff Oertel, Oertel Architects 1997 EDITION AIA DOCUMENT A'10~-1997 Standard Form of Agreement Between Owner and G'ontractor where the basis of payment is a S~TPLIL~AT£D SLINf AGREEMENT made as of the 27th in the year 2~wo Thousand Three (2t}03) (!n words, indicate day, month acrd }ear) BETWEEN the Owner_ (Name, address and other information) and the Contractor. (Name, address and other information) The Project is: (Name and location) The Arcl~iitect is: (Name, address and other infonttation) I ! The Owner and Contractor agree as follows. day of May City of Richfield 6700 Portland Avenue Svuth Richfield, PQT 55423 i3amline Construction, Inc. 1400 Selby Avenue, Suite 260 St. Paul, Mld 55204 City of Richfield Community Center Renovation Oertel Architects 1395 St. Clair Avenue St. Paul, MUS 55145 Cppyrighr 7915, 1918, 1925, ]937, 1951, 1958, 1961, 1463, 1967, 1474,1977,1987, ®1997 by The American Institute of Architects- ReproducY,on of the material herein or substantial quotation of its provisions without written permission of rho AiA vinlaroc tho rnnvrieht I,~v,rc of rhp Unirrrf Srarpc and w;I[ a,hirrr ,ho violator to Ieoal orosetution. d6Z-~ EtDIlOt1'd £11-1 Ot£81EEt19+ Uene.+~ ~ ,tpsuua~_woa~ This document has impor- tant legal consequences. Consultation with an anomey is encouraged with respect to its completion or modifiitation. AIA Document A201-1997, General Conditions of the Contract for Construction, is adopted in this document by reference. Do not use with other general conditions unless this document is modified. This document has been approved and endorsed by The Associated General Contractors of America. ^~ .~~1r~s •ii~i~s~ >_ ®1997 AIA~ AIA DOCUMENT At01-1997 OWNER-CONTRACTOR AGREEMENT Tfie American Institute of Arch;recrs 7135 New York Avenue, N.W. Washington, O.C. 20006.5292 9£~9t SO-ld-~e6Y ARTICLE 7 THE CONTRACT DOCUMENTS The Contract Documents consist of this Agreement, Conditions of the Contrail. (General, Supplementary and other Conditions), Drawings, Specifications, Addenda issued prior to execution of this Agreement, other documents listed in this Agreement and Modifications issued after execution of this Agreement; these form the Contract, and are as fully a part of the Coattail as if attached to this Agreement or repeated herein. The Contract represents the entire and integrated agzeement between the parties hereto and supersedes prior negotiations, representa- tions oz •agrecmants, either mitten or oral. An enumeration of the Contract Documents, other '. than Modificaiioas, appears in Article 8. ARTICLE 2 THE WORK OF THIS CONTRACT The Contractor shall fully execute the Work described in the Contract Doctments> except to the extent specifically indicated in the Contract Documents to be the responsibility of others. ARTICLE 3 DATE OF COMMENCEMENT ANO SUBSTANTIAL COMPLETION . 3.t The date of commencement of the Work shall be the date of this Agreement unless a different date is stated below or provision is made for the date to be fixed in a notice to proceed issued by the Owner. • • (Insert the date of commencement if it differs from the date of thisA~teemexr or, if applicable, staee that the date will 8e fixEd in a notice ro proceedl • If, prior to the commencement of the Work, the Owner requires time to file mortgages, m~chan- ic's liens and other securityvnterests> the Owner's time requirement shall be as follows: 3.z The Contrail Time shall be measured from the date of commencement. 3.3 The Contractor shall achieve Substantial Completion of the entire Work not aater than August 25, 2003 (Insert number of calendar days. Atrerrratavety, acalendar date may be tas¢d when coordinated with the date of commencement, iLtless stated elsewhere in the Contract Documents, insert any requirements for earlier Substantial Completion of terrain portions of the Work.) ,subject to adjustments of this Contract Time a§ provided in the Contract Documents. (Insert provisions, if any, for liquidated damages relating to failure to complete on time or for bonus payments for early completion of the Work.) Z6Z-~ £t0lS00"d £11-1 Oi£61££Zi9+ H~~ a. e o .o °6~0 O ®1997 r,taat AlA DOCUMENT A1ot-t997 OWNER-CONTRACTOR AGREEMENT • The American Institute of Architects 1735 New York Avenue. N.W. Washington, D.C. 2oD~-5292 uenea~ ~ ,tpeuue~_wo~~ 1£~9i £O-tZ-AeiY ARTICLE 4 COtNTRACT SUM 4.1 The Owner shall pay the Contractor the Contract Sum in current funds for the Contxactor's performance of the Contract. The Contract Sum shall be Three Hundred Six Thausand T`wo Hundred Fifty and No! 100------------------Dollars (s 306, 250.00 ), subject to additions and deductions as Provided in the Contract Documents. 4.2 71te Contract Sum is based upon the following alternates, if any, which are described in the Contract Documents and are hereby accepted by the Owner: (State the numbers or other identification of accepted alternates If decisions on other alternates are to be made fry the Owner subsequent to the execution of thisA`vreemem> attach a schedule of such other alternates showing the amount jot eath arrd tAe datF when that amount expires.) a3 12nit prices, if any, are as follows: $1.00ls.f: -Additional interior painting minimum of 100 s.f. ARTICLES PAYMENTS 5.1 PROGRESS PAYMENTS 3.1.1 Based upon Applications for Paytitent submitted to the Architect by the Contractor and Certificates for Payment issued by the Architect, the Owner shall make progress payments on account of the Contract Sum to tine Contractor as provided below and elsewhere in the Contract Documents. 5.1.2 The period covered by each Application Eor Payment shaII be one calendar month ending on the last day of the month, or as follows: S.i3 went shall be made by the Owner not later than 45 days after the Architect receives th¢ Application for Payment 5.t.a Each Application for Payment shall be based on the most recent schedule of values submit- ted by the Contractor in accordance with the Contract Docutnenis. The schedule of values shall allocate the entire Contract Sum among the various portions of the Work. The schedule of values ,/~ shall. be prepaxed in such form and supported by such data to substantiate its accuracy as the _ . I Architect may require. This scltedule, unless objected to by the Architect, shall be used as a basis for reviewing the Contractor s Applications for Payment. ZBZ-~ £t0/600"d £11-1 Ol£81££Z19+ ueneag la ,tpeuue~_woad Pa u{~ n, o o, c °OQ7Dp~ y X1997 AtA~ AIA DOCUMENT A701.1997 OWNER-CONTRAC74R AGREEMENT the Amerizan institute Of Ardiirecrs 1735 Hew York Avenue, N.W. Washington, D.C. 20006-5292 1£~9l £O-iZ-~aiV s.ts Applications for Payment shall indicate the percentage of completion of each portion of the Work as of the end of the period covered by the Application for Payment. 5.1.6 Subject to other provisions of the Contract Documents, the amount of each progress pay- ment shall be computed as follows: a Take that portion of the Contract Sum properly allocable to completed Work as deter- mined by multiplying the percentage completion of each portion of the Work by the share of the Contract Sum allocated to that portion of the Work in the schedule of val- . ues, less retainage of five ~ percent ( 5 %)_ Pending final dettsmi- • ~ ~ nation of cost to the Owner of changes in the Work, amounts not in dispute shrill be • included as provided in Subparagraph 7_~8 of AIA Document Azor-r9g7; ~ Add that portion of the Contrail Sum properly allocable to materials and equipment • delivered and suitably stored at the site for subsequent incorporation in the Completed construction (or, if approved in 3dv~artce by the Owner> suitably stoxed off the site at a 'location agreed upon in writing), less retainage of f 3v a percent ( 5 %); s • Subtract the aggregate of previous payments made by the turner; and .~ Subtract amounts; if any, for which the Architect has withheld ar nullified a Certificate for payment as provided in Paragraph 9.q of AIA Doctuneat.4aor-iy97. --~. - 5_L7 The progress payment amount determined in accordance with Subparagraph 5.r.6 shall be further mothfied under the following circumstances: .i Add, upon Substantial Completion of the Work, a sum suf&cient to increase the totalpay- - meets to the full amount of the Contract Sum, less such amounts as the Architect shall determine for incomplete Work, retairtage applicable to such work and unsettled claims; ' and (Subparagraph 9.tts of AIA Document A2oi•1997 requi-es reteose of applicable retainage upon • • Substantdal t;,orsepletion of Work with consent of surety, df any,) _ s Add, if final completion of the Work is thereafter materially delayed through no fault of the Contractor, any additional amounts payable in accordance with Subparagraph 9.ro.3 • of AIA Document A2oz 1997• . 5_t.s Reduction or limitation of retainage, if any, shall be as follows: (If dt is intended, prior to Substantial Comptetiea of the entire Work, to reduce or limit the retainage rasudung from the percentages iruerted in Clauses S.t•6,i and S.~.S.z above, and thds ds not explained slsewher~ in the Contract Documents. desert here provisions for such rrductdon or limitation.) upon final acceptance by Owner. 5.T.9 Except with the Owner's prior approval, the Contractor shall not make advance payments to suppliers for materials or equipment which have not been delivered and stored at the site. 5.2 FINAL PAYMENT ^ 5.2.1 Fiaal payment, constituting the entire unpaid balance of the Contract Sum, shall be made l l by the Owner to the Contractor when: _i the Contractor has fully performed the Contract except for the Contractor's responsibil- ity to correct Work as pravtded in Subparagraph t~.a = of AIA Document Azoi tom, and to satisfy other requirements, if any, which extend beyond final payment; and fin 1 G rtifi to for Pa ent has been issued by the Architect_ Ill) a a °o~o° tCC~ m1997 A~A® ArA oocuMeNT nw~-i9~ OWNER-CC+NTRACTOR AGREEMENT The American lnstitote pf Arthitecrs Washington, D.C. 24006-5292 2 a a e ca ym 1735 New York Avenue, N.W Z$Z-d £l0/Olti'd £11-1 Ol£81££Z19+ ueneag ~ ,tpauuaxauoaj 8£~9i £0-iZ-~eMY 5.2.2 The Owner's final payment to the Contractor shall be made no later than 3o days after. the issuance of the Architect's final Certificate for Payment, or as follows: ARTICLE 6 TERMINATION OR SUSPENSION e.t The Contract may be terminated by the Owner or the Contractor as provided in Article >4 of AIA Document A2oit-1997- ' 6.Z The Work may be suspended by the Owner as provided in Article t4 of A,IA Document A2ot-1997• . ARTICLE 7 MISCELlANfi0U5 PROV15tONS T.1 Where reference is made in this Agreement to a provision of AIA Document Azoz-1997 or attother Contract Document, the reference refers to that provision as amended or supplemented by other provisions of the Contract Documents. 7.2 Paymerrts due and unpaid under the Contract shall bear interest from the date payment is due at the rate stated below, or izt the absence thereof, at the legal rate prevailing from time to time at the place where the Project is located. (Insert rate of inter¢st agreed upon, if arty.) Si.x percent (6~) simple interest: per annum. ^• (usury laws and requirements under the Federal Truth in LendirrgAct, similar state and local consumer ~.redit laws and other regulations at the Owners and Contractors principal places of business, the location of the !'rojea and etsewhere may affect the validity of this provision Legal advice should be obtained with respect to deletions or modifeeations, and also r~ardlr{T requirements such as written disclosures or waivers.) 73 The Owner's representative is: {Nartte, address and other informatianJ 7.4 The Contractor's representative is: {Name, address and other informative) Jim TopitzhaEer 7000 Nicollet Avenue Richfield, MN 55423 MAMTA SARAF 1400 Selby Avenue, Suite 260 St. Faul, MMPII 55144 7.5 Neither the Qwner's nor the Contractor's representative shall be changed without ten days' written notice to the other party. 7.s Other provisions: l I Z8Z-~ £lOtitO'd £11-1 Ot£81££ti9t ~~l~ a a e. .o °o ~S1'4~ X1997 A1A~ AIA DOCUMENT Aldl-1997 OWNER-CONTRACTOR AGREEMENT The American ~nsritute of Architects 1735 New York /-venue. N.W. Washington. D.C. 20006-5292 uanetg ~ ,tpauue~-uto,+~ 8£~9i £0-tl-~EIY Ali71Ct.E 8 ENUNIERATtON Of CONTRAti DOCUMENTS S.t The Contract Docuinenis, except for Modifications issued after execution of this Agreement, aze enumerated as follows: st.1 The Agreement is this executed 1997 edition of the Standard Form of Agreement aetween Owner and Contractor, AIA Document Aioi-t99/_ 1987 s.i~ The General Conditions at>r the 7~tit edition of the General Conditions of the Contract for Construction, AIA Document Azov i 98 7 _ ' S.t3 The Supplementary and other Conditions of the Contract are those wntained in the :['roject Manual dated ~ .April l4, 2003 ,and are as follows: Do~nent Title See Attachment No. 1. '~~ at.a 'The Specifications are those contained inthe Project Manual dated as in Subparagraph 81.3, and are as follows. ~ ' (Either Iist the Specifications here or refr to an exhibit attached to thisAgreement_) Section - Title ~ Pages See Att:acltment No . 2 ~ - Xroj ect MancxB.l dated April 14, 2003 Pages 8.ts The Drawings are as follows, and are dated Apr31 22, 2003 different date is shown below: ~ ~ ' (Either List the Drawings here or refer to an exhibit attached to thisAgreement.l Number Title Date See Attachment No. 3 -Drawings dated April 22, 2003 Z6.t-d £tQftfQ"d £11-1 0t£81££tt9+ unless a l1~, e o 4, .9 Qa'.~ DO tDt947 AtR~ AIA oocuMENT a>ot-isa~ CtWNER-CONTRACTOR At;REEMENT The American tnsriture of Architects 1735 New Yor1t Avenue, N.W. Washington, D.C. 20005.5292 eansa9 $ ,t~euua~_+ua.+~ 6:£~9t £Q-tZ`-,taffy ~1 6.1.ti The Addenda, if any, are as follows: Number Date Pages 1 May 5, 2003 4 pages 2 Ma 12, 2003 5 gages y Portions of Addenda relating to bidding requirements are not part of the Contract Documents unless the bidding requirements are also enumerated in this Article 8. 8.1.7 Other documents, if any> forming part of the Contract Documents are as follows: (List here any additional documents that are intended to for-n pan of the Contract Documents. AIA !)ocumext ~s•199T Provides that bidding requirements such as advertisement or imritaciox to bid, Instructions to Bidders, sample forms and the Coxtrattot's but are not part of the Goxtract Documents unless exumerated in skis .agreement. They should be listed here only if iritertded to be part of the Contract Documersts.) t This Agreement is entered into as of the day and year first written above and is executed in at least three original copies, of which oae is to be delivered to the Contractor, one to the A~hitect for use in the administration of the Contract, and the remainder to the Owner: CITY OF RICHFIELD HAMLINE CONSTRIIGTION C01~4PANY, ING. By: ~ Martia d. Kirsch CONTRACTOR(Signature) Mayor ay: Samantha Orduno City Manager (Printed name and side) Uuiwtt You should si~rr an original AIA document or a licensed reprodxetion. Drigixaia rontain th¢A.IA logo printed in red; licensed reproduttioxs are those p-odured in accordance with the Instrurtians to this document. APPROVED AS TO EXECT.T'SION: Corrine H. `Thomson Z6Z-~ €i0/£i0'd 811-1 O1£81f£Z19+ iigp-s~ ®1997 ata~ A[A ~GllMENT Alo7-1497 OWNER•CONTRACTOR AGREEMENT Tfie Ametitan InsTitvte of Architects 1735 New York Avenue, N.W. 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CA ff> Efl Ct} Q ~_ N M O O O O O ~ O ~ O O m C O O N C O N O M O M M M ti ~ ca ~ ~ c ~ ~ ~ ~ ~ ~ pOp o 0 0 0 0 0 0 ` a a a a a a a . ~ ~ ~ ~ ~ m ~ N a i > a i > i a > i a > a i > > a i > Q~ U U U U U U U ~ ~ ~ ~ ~ ~ ~ ~ C C C O O L O 0 U O U ~ U ~ i U i O C O C~ ~ N i N ~ U N C O C~ N C O O .~ U C O U ~ O i V ° U o U c ~ n ~ °' U ~ ~ ~ o ca ° ~ m o ° ~ ° U U ~ ~ • n ~. •L ~ C C ~ N C Z Y ~ _ = C~ J ~ Q C ++ N N •U C O U M O O N ti N (a ca N N fn C O U C (B f~ (6 0 ..C a-+ (6 t -r N U C O C C (if Y N _A U a~ Y N U _a U ~_ U C (S5 Z COMMUNITY CENTER REMODELING PROJECT SCHEDULE January 21, 2003 Present preliminary plan and cost estimates to Community Services Commission February 11, 2003 City Council consideration to proceed with plans, specifications and biddin documents ~ March 12, 2003 Mechanical and electrical meeting March 13, 2003 Review progress set of plans with Building Official and Bloomin ton Health Officials March 20, 2003 Hazardous material review March. 24, 2003. Select finishes with Oertel Architects April 8, 2003. Submit first draft of plans and specifications April 15, 2003 Deadline for completed plans and specifications April 22, 2003 ~ City Council considers plans and specifications, ad for bids __ April 23, 2003 Advertise bids May 15, 2003 Bid opening May 27, 2003 City Council consideration of bids and construction contracts May 28, 2003 i Construction begins __ _ - ~I September 15, 2003 Construction completion deadline 05-}5-03 05;Zdr~m Fran-t~WKE t:Q5TE11U KART ~~ ~,. T-i$5 P.UiltJi F-6$7 MOOR, COS~'ELLO ~ HART, P.L.L.P. A Profsss~ona{ L,mitea Liapifiry Partnership ATTORN~1(S REALY 70 ST. !'AUL OFFICE YfA FAX t612~ 861-9388 Ms. Nancy L. Gibbs City Clerk Ciry of Richfield, Minnesota 6700 pottlattd Avenue South Richfield, MN SS423 Re: Richfield Community Center Remodeling Dear Ms. Gibbs: WRITER'S putEC7 DIAL NUMBER (65I) 602-2645 jgp(a?,mch pilg.com Our ofFice has been retained by Greystone Construction Company in connection with "~ irregularities associated with the opening of bids for the above-referenced groject. I understand that the City accepted f:ve bids after the bid opening time of 2:00 g.m. today. Those five bids, which are non-responsive, should not have been accepted by the City. By accepting those non-responsive bids, the Ciry extended to those bidders an advantage of additional time that was. not available to those bidders wha submitted timely bids. The Ciry must reject the late bids and award the contract to Greystane Construction Company, which submitted the lowesrrzsponsive bid. If you have any questions, please do not hesitate to call. Very truly yours, pj~ cc: Greystone Construction Company srP { u~2~w I May 15, 2003 MOORS, COSTELLU & BART, P.L.L.P. >3y ~ ~. J n G. Patterson 55 EAST FlFTh STREET • St)rTE 1400 - ST. PAtlr_, MN 55101-1782.7Ek i6S1} 22T-yb83 -FAX {651} 6Q2-2670 70t FQURTN AYEt4f,E SE?UTM • SUfTt=1350 • N{{NNF.APQ~IS, MN 55415-1823 -TEL. 1612) 673-0148 • FAX i612) 395.8600 Ke nn ed y G rav en 470 Pillsbury Center 200 South Sixth Street Minneapolis MN 55402 (612) 337-9300 telephone (612) 337-9310 faz http://www.kennedy-graven.com CoxxnvE H. TxOMSON Attorney at Law Direct Dial (612) 337-9217 Email: cthomson@kennedy-graven.com Real Property Law Specialist, Certified by Minnesota State Baz Assn. May 21, 2003 John G. Patterson Moore, Costello & Hart, P.L.L.P. 55 East Fifth Street, Suite 1400 St. Paul, MN 55101-1782 RE: Richfield Community Center Remodeling ,'"~ Dear Mr. Patterson: ~; This is in response. to your letter of May 15, 2003, which was directed to the Richfield city clerk, Nancy Gibbs. In your letter, you indicated that the City had accepted five bids after the bid opening of 2 p.m. on May 15, 2003 and that the City is required to reject those bids. T respectfully disagree. Based on information provided by the architect, city clerk, and receptionist, I understand that shortly before 2:00 p.m., the architect, Jeff Oertel, .called for all remaining bids to be submitted, at which point several bidders present converged toward the reception desk to have their bids time stamped... The receptionist did not accept the bids as a group, but instead each bidder waited until the preceding bidder had handed the sealed envelope to the receptionist, and the receptionist had hand- stampedthe envelope, .checked the time, and written the time on the envelope. Due to the number of bidders, it took a couple of minutes for the entire line of bidders to be processed. Three bids, including the low bid, were marked as received at 2:00 p.m., and two were marked as received at 2:01 p.m. The 2:00 p.m. bids were timely, -and the City. had the lawful .discretion to accept the 2:01. p.m. bids under the circumstances.: ALL of the bidders were present and had their bid packages prepared at or prior to 2 p.m. These circumstances are similar to those in Nielsen v. City of Saint Paul, 88 N.W.2d 853 (Minn. 1958). Irl that case, the Minnesota Supreme Court upheld the award of a contract to a bidder who- submitted its bid between 1 and 5 minutes after the stated bid award time. The. bidder was not present at the bid closing time because the bid opening room had been changed without notice to the n bidders. However, the bidder had arrived before any bids were opened. Under those circumstances;. ~, John G. Patterson May 21, 2003 Page 2 of 2 the court noted that the procedure followed did not provide any advantage to any one bidder over another bidder, and that the city had acted within its permissible discretion in accepting the late bid. Contrary to your assertion, no bidder was provided any advantage over another under the procedure that the City followed. The City allowed all bidders present at-2:00 p.m. to submit their bids, and none of tyre bids--were opened before the last bid was stamped as received. No one had any opportunity to change or complete an unfinished bid after 2:00 p.m. The City's process was entirely reasonable under the circumstances. Moreover, rejecting the low bid, which was received at 2:00 p.m., would be a significant disservice to the public, since your client's base bid was. $17,419 higher than Hamline Construction's low base bid of $306,250. Accordingly, I have advised the City that it may accept the low bid submitted by Hamline Construction. Sincerely, ~~ Corrine H. Thomson CAH-231825v1 RC160-7 AGENDA SECTION: Other Business AGENDA ITEM # 9 REPORT # 121 STAFF REPORT CITY COUNCIL MEETING MAY 27, 2003 REPORT PREPARED BY: BRUCE SYLVESTER, ZONING ADMINISTRATOR NAME, TITLE COUNCIL PRESENTER: ACTING DEPARTMENT DIRECTOR ~~~ REVIEW: SIGNATURE REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of a special request to the City Council for a sign of unusual height or location for a new scoreboard si n with advertisin anels at Donaldson Park. I. RECOMMENDED ACTION: By Motion: Approve the requested scoreboard sign with advertising panels for Donaldson Park and also; By Motion: Waive the required application fee for making a special reauest to the City Council II. BACKGROUND • An informal group of non-profit organizations (including the VFW, the Richfield Tourism and Promotion Board, the Academy of Holy Angels, Senior Babe Ruth, and the Richfield-Bloomington Credit Union) is requesting special approval from the City Council, as provided in City Code section 416.03, Subdivision 6, for a scoreboard sign and advertising panels with a total square foot area of 308 square feet, as follows: 0527-Scoreboards.doc Scoreboard: 28' wide x 7' tall = 196 square feet Advertising Panel 1 (top) 28' wide x 2` tall = 56 square feet Advertising Panel 2 (bottom) 28' wide x 2' tall = 56 square feet Total: 308 square feet • The sign will be located at the north end of the baseball diamond in the northeast corner of Donaldson Park. (See attached site plan). • The proposed new sign will replace the existing scoreboard, which is in poor condition. • The Recreation Division is supportive of this request for special approval because it will allow the applicant non-profits to raise revenue to support their baseball program. • Because this request is for the benefit of non-profits that serve the youth in the community, staff is recommending that the city-required application fee of $350.00 be waived. • In 2001, the City Council adopted sign regulations for scoreboard signs with advertising panels in areas zoned `R', including City parks. The adopted rules limited the combined area of such scoreboards and advertising signs to a maximum size of 100 square feet. However, Section 416.03, Subdivision 6 does allow the Council to grant permission for signs of unusual height or location. III. BASIS OF RECOMMENDATION A. POLICY • City Code Section 416.03, Subdivision 6 allows for special approval from the council for signs of unusual height or location. B. CRITICAL ISSUES • The requested sign will replace an existing scoreboard sign with a newer and more attractive scoreboard sign. • Advertising panels on the new scoreboard will allow local non-profit organizations to raise funds to help support their baseball program. • The Recreation Division hosted a community meeting on Thursday,. May 22 with neighbors of Donaldson Park to discuss the proposed. scoreboard and advertising panels. The results of that meeting will be available at the City Council meeting on May 27. C. FINANCIAL • Staff is recommending that the application fee of $350 be waived. • Costs of the sign and installation will come from the applicants, not the City. D. LEGAL • Legal counsel suggested a larger sign could be considered or the ordinance should be changed to accommodate larger signs. ~~ IV. ALTERNATIVE RECOMMENDATION(S~ __ Deny the request and require that the scoreboard and advertising panels conform with the existing size limit of 100 square feet. • Request staff to modify the ordinance to accept larger signs other than by special request. V. ATTAC~IMENTS • Relevant City Code sections regulating signs. • Aerial photograph showing Donaldson Park and the proposed location of the scoreboard and advertising panels. • Illustration of the proposed scoreboard panel. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Mr. Larry Zielke. Richfield City Code Section 416.03, Subdivision 6 Subd. 6. Special approval from council. In the case of an application for a sign of unusual height, or location, the manager shall refer such sign to the council for approval. No permit for any such sign, so referred, shall be issued without first obtaining the approval of the council Richfield City Code 416.07, Subd. 2(a)(4) Sign Regulations for the `R' District (Rev. 2001) (4) Scoreboard Panels. Scoreboard panels are allowed only on electric scoreboards at outdoor sports arenas or complexes.. Scoreboard panels shall not be illuminated, shall be integral to the scoreboard, and shall be constructed of the same or similar materials as the scoreboard and are subject to the following regulations: (i) Must conform with section 416.07, Subd. 1(a) (ii) Maximum Area (including scoreboard and panels) of such scoreboard panels and scoreboard shall not exceed 100 square feet. Scoreboard panels shall forma "frame" around the perimeter of the scoreboard and such frame shall not exceed 2-feet in width, (iii) Maximum height (including. scoreboard and panels) of such scoreboard panels and scoreboard shall not exceed 18 feet.. (iv) No other signs shall be permitted at outdoor sports arenas or complexes, other than, as allowed in section 416.Q7, Subd. 1(b) and section 416.07, Subd. 2(a) No signs shall be allowed on or along any of the fences, and also in the concession areas, nor in any other area of such outdoor sports arenas or complexes. (v) Such scoreboard panels shall only be allowed between May 1st and September 1st of any year. Such scoreboard panels mus# be removed between September 1st and May ~ st. (vi) Scoreboard panels shall always be maintained and repaired so as to be attractive. (Added, Bill No. 2001-11) ' • / V O ! a ^ ~ O O i ~ D ~ r* o Q .. o ~ ~ o ~ ~ ~ o ~ ~ _. ~ ~' C7 ~ -~ _. `~ c~ n ~ ~ _ ~ ~ c~ n ~ _. ~o .o io 0 N ~o z W O I O O O TI (D (D ~~~ ~~, kR ~{ n ~ '4 + ~ ~: ~,. t ~~ .~ ~~. a ~~ ; CJ • 9 ~ ~. k n ~';, "i ~i " ~ ~ ~~ ~, X ~~ ~, ~~ ,' *~~. ..'~ '. BA-3724 vital game information. The great scoreboard layout Witt fs f3" in depth, shipped fn tot The BA-2002 !s 8" In depth, front or rear aceesslbNltlr. & LED dtgtts. AT BA7': BALL, S are 2a• white the others are scoreboards with programm ~ooreboa.nis erNiro fans by displaying lA-3724 and t3A 2p02 haw: the same a few minor differences. The BA-3724 sections end serviced from the front. thfpped in two sections a.nd offers ellher h scoreboards have blight PanaView 'BIKE, OIJT and H/E {hit or error) digits If3'. Per50n81fze either of these ble teem name message centers. a ~ ro• fz~aa. mm) W =29'0" (853q mm) Deb"(1F?,mm) 16 ~ 888-DAKTRONICS or 605-697-4300 8 A- Z C3 ft3 ~ ~ ! ~yFyiy, DlspJaying valuable game. tnlormatlon, the BA~7t8 and BA-toot "are a earl: of Daktronirs line of delelxe baseball models. The 18' and 15 f~anoView LED diglta make Rhe9e scoreboards v)sibte in any weather M=rn(2~samn,) condition, day or night. The BA-2001 iS 8" irr depth, front or rear eoces- w=2a~o• (base mm) sibie end is shipped in one section. The gA-3719 iS 6" in depth, front ~ n=9~(20.1mm1 accessible and t5 shipped In four sertlon6. Give your scoreboard a roots personal touch by adding progremmabt9 team name messag9 centers. AGENDA SECTION: p„bl i c Hear; ng,G AGENDA ITEM # 8 REPORT # 120 STAFF REPORT CITY COUNCIL MEETING MAY 27, 2003 REPORT PREPARED BY: COUNCIL PRESENTER: GEORGE L. ATKINSON, ENGINEERING SUPERVISOR DEPARTMENT DIRECTOR REVIEW: /~~ SI ATURE REVIEWED BY CITY MANAGER: ~ C~ ITEM FOR COUNCIL CONSIDERATION: Public hearing and second reading of proposed Franchise Ordinance and Agreement with Centerpoint/Minnegasco allowing and setting terms for Centerpoint's use of the City right-of- way. I. RECOMMENDED ACTION: Conduct and close the public hearing and by motion approve second reading of the attached Franchise Ordinance and Agreement between the City. of Richfield and Centerpoint/Minnegasco. III. BACKGROUND ~ __ The current Franchise Agreement with Centerpoint/Minnegasco will expire on June 30, 2003. Attached is an updated ordinance meant to replace the soon to expire ordinance. In addition to granting Centerpoint/Minnegasco the right to use City controlled right-of-way (r-o-w) for the installation, maintenance and repair of gas distribution facilities, the agreement spells out the rights and responsibilities incurred by each of the parties to the agreement. As with the previous agreement, the new agreement allows the City to impose franchise fees. 0527FranchiseCenterpoint III. BASIS OF RECOMMENDATION ~~ A. POLICY • It is necessary that the City work with the privately owned utility companies like Centerpoint/Minnegasco to provide essential services to Richfield residents. Federal and State laws also obligate the City to allow private utility infrastructure to be placed, operated and maintained in City r-o-w. • Centerpoint/Minnegasco has had the opportunity to review and comment on this agreement. Centerpoint's staff has indicated that the company will accept the current language and will execute the agreement as is. B. CRITICAL ISSUES • Other than the need to replace the existing and soon-to-be-expired Franchise Agreement, there appears to be no critical issues surrounding this ordinance approval. C. FINANCIAL • As proposed, this ordinance will not increase the cost of gas service to Richfield residents. '~ D. LEGAL • Attorney James Strommen of Kennedy and Graven has been a part of the staff team that drafted this agreement and held meetings with City staff and representatives of Centerpoint/Minnegasco. • Legal notice for the public hearing and second reading was published in the Sun Current on May 1, 2003. IV. ALTERNATIVE RECOMMENDATION(S~ • Council could decline to approve this ordinance and agreement, but it is advisable to have such an agreement in place as it provides the basis for the ongoing relationship between Centerpoint/Minnegascoand Richfield. V. ATTACHMENTS • A copy of the proposed Franchise Agreement. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None known at this time. A representative of Centerpoint/Minnegascotyill have been notified of the time and date of the consideration of this agreement. Whether someone will attend or not is unknown. GAS ORDINANCE CENTERPOINT ENERGYMINNEGASCO ORDINANCE NO. CITY OF RICHFIELD HENNEPIN COUNTY, MINNESOTA AN ORDINANCE GRANTING CENTERPOINT ENERGY MINNEGASCO, A DIVISION OF CENTERPOINT ENERGY RESOURCES CORP., A DELAWARE CORPORATION, ITS SUCCESSORS AND ASSIGNS, A NONEXCLUSIVE FRANCHISE TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN FACILITIES AND EQUIPMENT FOR THE TRANSPORTATION, DISTRIBUTION, MANUFACTURE AND SALE OF GAS ENERGY FOR PUBLIC AND PRIVATE USE AND TO USE THE PUBLIC WAYS AND GROUNDS OF THE CITY OF RICHFIELD, MINNESOTA, FOR SUCH PURPOSE; AND, PRESCRIBING CERTAIN TERMS AND CONDITIONS THEREOF. THE CITY COUNCIL OF THE CITY OF RICHFIELD, HENNEPIN COUNTY, MINNESOTA, ORDAINS: SECTION 1. DEFINITIONS. For purposes of this Ordinance, the following capitalized terms listed in alphabetical order shall have the following meanings: City. The City of Richfield, County of Hennepin, State of Minnesota. City Utility System. Facilities used for providing public utility service owned or operated by City or agency thereof, including sewer, storm sewer, water service, street lighting and traffic signals, but excluding facilities for providing heating, private lighting, or other forms of energy. Commission. The Minnesota Public Utilities Commission, or any successor agency or agencies, including an agency of the federal government, which preempts all or part of the authority to regulate gas retail rates now vested in the Minnesota Public Utilities Commission. Company. CenterPoint Energy Minnegasco, a division of CenterPoint Energy Resources Corp., a Delaware corporation, its successors and assigns including all successors or assigns that own or operate any part or parts of the Gas Facilities subject to this franchise. Gas Facilities. Gas transmission and distribution pipes, lines, ducts, fixtures, and all necessary equipment and appurtenances owned or operated by the Company for the purpose of providing gas energy for public or private use. Gas. Natural gas, manufactured gas, mixture of natural gas and manufactured gas or other forms of gas energy. n JMS-228788v4 RC145-326 --~ Non-Betterment Costs. Costs incurred by Company from relocation, removal or rearrangement of Gas Facilities that do not result in an improvement to the Gas Facilities. Notice. A writing served by any parry or parties on any other party or parties. Notice to Company shall be mailed to CenterPoint Energy Minnegasco, V.P., Regulatory & Supply Service, 800 LaSalle Avenue, Minneapolis, MN 55402-2006. Notice to the City shall be mailed to the Ciry Manager/Administrator, City of Richfield, 6700 Portland Avenue South, Richfield, MN 55423. Any party may change its respective address for the purpose of this Ordinance by written notice to the other parties. Public Way. Public right-of--way within the City as defined in Minn. Stat. § 237.162, subd. 3. Public Ground. Land owned or otherwise controlled by the City for park, open space or similar public purpose, which is held for use in common by the public. SECTION 2. ADOPTION OF FRANCHISE. 2.1. Grant of Franchise. City hereby grants Company, for a period of 20 years from the date this Ordinance is passed and approved by the City, the right to import, manufacture, distribute and sell gas for public and private use within and through the limits of the City as its boundaries now exist or as they maybe extended in the future. This right includes the provision of Gas that is (i) manufactured by the Company or its affiliates and delivered by the Company, (ii) purchased and delivered by the Company or (iii) purchased from another source by the retail customer and delivered by the Company. For these purposes, Company may construct, operate, repair and maintain Gas Facilities in, on, over, under and across the Public Ways and Public Grounds, subject to the provisions of this Ordinance. Company may do all reasonable things necessary or customary to accomplish these purposes, subject however, to such lawful regulations as may be adopted by separate ordinance and as currently exist under City Right of Way (ROW) Ordinance , or other applicable ordinances or as they may be lawfully amended from time to time during the franchise term. The Company shall be notified 60 days in advance of proposed changes to City Code (ROW) By agreeing to the City's right to incorporate amendments to City Code (ROW) into this Ordinance during the franchise term, Company does not waive its right to challenge any such amendment, in accordance with Section 2.5 of this Ordinance and based on the limits of City police power .authority under Minnesota law. If a provision of City Code (ROW) conflicts with a provision on the same subject in this Ordinance, this Ordinance will control. 2.2. Effective Date; Written Acceptance. This franchise shall be in force and effect from and after its passage of this Ordinance and publication as required by law and its acceptance by Company. If Company does not file a written acceptance with the City within 90 Days after the date the City Council adopts this Ordinance, or otherwise places the City on written notice, at any time, that the Company does not accept all terms of this franchise, the City Council by resolution may either repeal this ordinance or seek its enforcement in a court of competent jurisdiction. 2.3. Service and Gas Rates. The service to be provided and the rates to be charged by n Company for gas service in City are subject to the jurisdiction of the Commission JMS-228788v4 2 RC145-326 ~ 2.4. Publication Expense. The expense of publication of this Ordinance shall be paid by Company. 2.5. Dispute Resolution. If either parry asserts that the other parry is in default in the performance of any obligation hereunder, the complaining parry shall notify the other party of the default and the desired remedy. The notification shall be written. Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not resolved within 30 days of the written notice, the parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of this mediator. If a mediator is not used or if the parties are unable to resolve the dispute within 30 days after first meeting with the selected mediator, either parry may commence an action in District Court to interpret and enforce this franchise or for such other relief permitted by law. 2.6. Continuation of Franchise. If the City and the Company are unable to agree on the terms of a new franchise by the time this franchise expires, this franchise will remain in effect until a new franchise is agreed upon, or unti190 days after the City or the Company serves written Notice to the other parry of its intention to allow the franchise to expire. SECTION 3. LOCATION OTHER REGULATIONS. 3.1. Location of Facilities. Subject to regulation under City Code (ROW) ,Gas Facilities in the Public Way shall be located, constructed, and maintained so as not to disrupt normal ~~ operation of any City Utility System. Gas Facilities may be located on Public Grounds as - " determined by the City. 3.2. Restoration of Public Ways and Public Ground. A. Restoration of the Public Way shall be subject to City Code (ROW) B. After completing work requiring the opening of Public Ground, the Company shall restore the Public Ground to as good a condition as formerly existed, and shall maintain the surface in good condition for one (1) year on unpaved surfaces, two (2) years on paved surfaces thereafter. All work shall be completed as promptly as weather permits. If Company shall not promptly perform and complete the work, remove all dirt, rubbish, equipment and material, and put the Public Ground in the said condition and after demand to Company to cure, City shall, after passage of a reasonable period of time following the demand, but not to exceed ten working days, have the right to make the restoration of the Public Ground at the expense of Company. Company shall pay to the City the cost of such work done for or performed by the City or it's assigned. This remedy shall be in addition to any other remedy available to the City for noncompliance with this- Section. 3.3. Waiver of Performance Security. The City hereby waives any requirement for Company to post a construction performance bond, certificate of insurance, letter of credit or any n other form of security or assurance that may be required under. City Code (ROW) currently JMS-228788v4 3 RC145-326 -~ or in the future. The City reserves all other rights under City Code (ROW) to enforce Company performance requirements for work in the Public Way or Public Ground. 3.4. Avoid Damage to Gas Facilities. Nothing in this Ordinance relieves any person from liability arising out of the failure to exercise reasonable care to avoid damaging Gas Facilities while performing any activity. SECTION 4. RELOCATIONS. 4.1. Relocation of Gas Facilities. A. Relocation of Gas Facilities in Public Ways shall be subject to City Code (ROW) B. City may require Company at Company's expense to relocate or remove its Gas Facilities from Public Grounds upon a finding by City that the Gas Facilities have become or will become a substantial impairment to the existing or proposed public use of the Grounds. Relocation Gas Facilities in Public Ground shall comply with applicable City ordinances consistent with law. 4.2. Projects with Federal Funding. Relocation, removal, or rearrangement of any Company Gas Facilities made necessary because of the extension into or through City of a federally-aided highway project shall be governed by the provisions of Minnesota Statutes Section 161.46, as supplemented or amended. The City is not obligated to pay Company for those portions of its relocation costs for which City has not received federal funding. 4.3. No Waiver. The provisions of Section 4 apply only to Gas Facilities constructed in reliance on a permit or franchise from City and Company does not waive its rights under an easement or prescriptive right or State or County permit. SECTION 5. CHANGE IN FORM OF GOVERNMENT. Any change in the form of government of .the City shall not affect the validity of this Ordinance. Any governmental unit succeeding the City shall, without the consent of Company, succeed to all of the rights and obligations of the City provided in this Ordinance. SECTION 6. FRANCHISE FEE. 6.1. Reservation of Rights. The City reserves all rights under Minn. Stat. § 216B.36, to require a franchise fee at any time during the term of this franchise. If the City elects to require a franchise fee it shall notify Company and negotiate in good faith to reach a mutually acceptable fee agreement, which shall be set forth in a separate ordinance and not adopted until at least 60 days after Notice enclosing such proposed ordinance has been served upon the Company by certified mail. If the City and Company are unable to agree on a franchise fee or on JMS-228788v4 G~ RC145-326 any terms related thereto, each hereby consents to the jurisdiction of State District Court. Hennepin County, to construe their respective rights under the law, subject to all rights of appeal. SECTION 7. LIMITATION ON APPLICABILITY: NO WAIVER. This Ordinance constitutes a franchise agreement between the City and its successors and the Company and its successors and permitted assigns, as the only parties. No provision of this franchise shall in any way inure to the benefit of any third person (including the public at large) so as to constitute any such person as a third party beneficiary of the agreement or of any one or more of the terms hereof, or otherwise give rise to any cause of action in any person not a party hereto. This franchise agreement shall not be interpreted to constitute a waiver by the City of any of its defenses of immunity or limitations on liability under Minnesota Statutes, Chapter 466. SECTIONS. AMENDMENT PROCEDURE. Either parry to this franchise agreement may at any time propose that the agreement be amended. This Ordinance may be amended at any time by the City passing a subsequent ordinance declaring the provisions of the amendment, which amendatory ordinance shall become effective upon the filing of Company's written consent thereto with the City Clerk within 60 days after the effective date of the amendatory ordinance. SECTION 9. PREVIOUS FRANCHISES SUPERSEDED. This franchise supersedes and replaces previous franchises granted to the Company or its - predecessors. Upon Company acceptance of this franchise under Section 2.2, the previous franchise shall terminate. Passed and approved: , Mayor of the City of Richfield, Minnesota Attest: City Clerk, Richfield, Minnesota JMS-228788v4 rj RC145-326 AGENDA SECTION: AGENDA ITEM # REPORT # STAFF REPORT CITY COUNCIL MEETING MAY 27, 2003 Public Hearings 7 119 REPORT PREPARED BY: BRUCE SYLVESTER, ZONING ADMINISTRATOR NAME, TITLE COUNCIL PRESENTER: ACTING DEPARTMENT DIRECTOR REVIEW: ~' C.~ ~ . SIGNATURE REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Public hearing and second reading of the attached transitory ordinance vacating the public right-of--way in the 6500 block of Xerxes Avenue. I. RECOMMENDED ACTION: Conduct and close a public hearing and by motion: Approve second reading of the attached transitory ordinance vacating the public right- of-wav in the 6500 block of Xerxes Avenue. II. BACKGROUND • Madison-Marquette Realty Services, on behalf of Principal Life Insurance Company-owners of Southdale Square at 66th Street West and Xerxes Avenue in Richfield-submitted a petition requesting. the vacation of the 6500 block of Xerxes Avenue. • The applicant is proposing to replace the existing bank building (The: former Richfield Bank and Trust branch) on the Edina side with a new commercial development, including a new retail building and additional parking. • Both Richfield and. Hennepin County Public Works staff have stated that the current configuration of the 6500 block of Xerxes Avenue is confusing and obsolete. The proposed redevelopment of the area will eliminate several 052703-VacateXerxes curb cuts onto Xerxes and York Avenues and make traffic patterns in the n area safer. • The municipal boundary separating Richfield from Edina runs down the centerline of Xerxes Avenue. • There are two parcels abutting this portion of Xerxes Avenue. 1) The parcel containing Southdale Square abuts Xerxes Avenue on the Richfield side, 2) The parcel containing the former Richfield Bank and Trust building, currently owned by M&I Bank, abuts Xerxes Avenue on the Edina side. • The City of Edina has granted preliminary approval for the proposed redevelopment, including the vacation of the western half of Xerxes Avenue (on the Edina side of the municipal line}. The Edina City Council will consider granting final approval on July 15, 2003. • Please see Attachment `A' for a survey of the proposed area to be vacated. III. BASIS OF RECOMMENDATION A. POLICY • Richfield City Charter Section 13.05 specifies procedures for the City Council to vacate a street or alley. • Richfield City Code Section 820.05 states that"No vacation may be made unless it appears in the interest of the public to do so. Not less than ten days prior to the public hearing, a notice shall be published once in the official newspaper and sent by mailed notice to the owner and residents within 350 feet." B. CRITICAL ISSUES • The Hennepin County Registrar of Deeds and Titles and all relevant public and private utilities have received notice of this vacation request and have been asked to identify any electric or telephone poles or lines; gas or sewer lines; water pipes, mains, or hydrants; and any other cables or utilities in the alley to be vacated. • Four utilities have responded by stating that they wish to maintain easements for facilities they have in the right-of--way: Qwest, Xcel Energy, Time-Warner and CenterPoint--Minnegasco. The transitory ordinance provides for maintaining easements for these utilities. • Richfield Public Works has been notified of the proposed vacation and the public utilities in the area are addressed in the transitory ordinance. • Hennepin County Public Works has reviewed the proposed transitory ordinance and has approved the language protecting its right-of--way interests in the area to be vacated. • Any proposed reconfiguration of the parking lot at Southdale Square which will be done in conjunction with the proposed redevelopment will be brought before the City Council for review and approval. Staff will require that improvements be made to Southdale Square to compliment any development on the west/Edina side of Xerxes Avenue. • The City Council reviewed the petition requesting that the 6500 block of Xerxes Avenue be vacated and determined it to be adequate at its April 22, 2003 meeting. 2 • The City Council conducted and approved a first reading of this transitory ordinance at its April 22, 2003 meeting. C. FINANCIAL • There is no direct financial benefit as the City will not obtain funds for the street. The indirect benefits, however, include improved parking, additional businesses, and better circulation patterns for Southdale Square. D. LEGAL • ,Public notice was published in the Sun Current on May 15, 2003. Mailed notices were sent to residents and property owners within 350 feet on May 13, 2003. The Richfield City Attorney has worked with the applicant's attorney to draft the Transitory Ordinance so that it meets the requirements of all parties, including the City of Richfield, the applicant, and Hennepin County. • 60-DAY RULE: The 60 day clock `started' when a complete application was received on April 2, 2003. A decision must be given to the applicant by June 1, 2003 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 the request to vacate the 6500 block of Xerxes Avenue with a finding. that it is not in the public interest to do so. V. ATTACHMENTS • Transitory Ordinance and Exhibit A with legal descriptions • Attachment `A'-Certificate of survey showing right-of--way to be vacated • Area maps showing zoning and land-uses within 350 feet VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Lee Hoffman, applicant, Madison-Marquette Realty 3 BILL NO. TRANSITORY ORDINANCE NO. AN ORDINANCE VACATING PUBLIC RIGHT-OF-WAY AND PUBLIC UTILITY EASEMENTS IN THE 6500 BLOCK OF XERXES AVENUE SOUTH, RICHFIELD THE CITY OF RICHFIELD DOES ORDAIN: Section 1: The City of Richfield has received a petition for the vacation of a public street easement over certain lands in the City of Richfield, County of Hennepin, and State of Minnesota. For purposes of this Ordinance, the lands are designated as the "Southerly Vacation Parcel" and the "Northerly Vacation Parcel" (collectively, "Vacation Parcels"), which are each further described in the attached Exhibit A. The locations of the Vacation Parcels are depicted on the attached Exhibit B. Sec. 2: The City Council has determined the petition for vacation to be adequate by Resolution No. Sec. 3: The owner of the underlying fee title to the Vacation Parcels proposes to combine the Vacation Parcels with abutting land to the west. Sec. 4. There is no public need for a street easement over the Southerly Vacation Parcel. A portion of the Northerly Vacation Parcel will be needed for use as a county - highway, but Hennepin County has not yet determined the area that will be needed. The owner of the Vacation Parcels therefore has agreed to convey to Hennepin County a permanent street easement over that portion of the Northerly Vacation Parcel that Hennepin County determines to be necessary. Sec. 5'. There are existing water, sewer, gas, electric, telephone, and telecommunications utility lines located within portions of the Vacation Parcels, and there is a continuing public need for an easement for utility purposes over the Vacation Parcels. Sec. 6: Upon the respective effective dates as provided in sections 7 and $ below, the public street easements- encumbering the Southerly Vacation Parcel and Northerly Vacation Parcel are vacated, reserving, however, to the public an easement for utility lines with right of entry to maintain, repair, replace, remove, or otherwise attend to said .utility lines; provided that the utility shall promptly repair.. any damage resulting from such maintenance,. repair, replacement, or removal. Sec. 7: The vacation cf the easement over the Southerly Vacation Parcel is effective 30 days following publication of this ordinance.: Seca 8. The vacation of the easement Aver the Northerly Vacation Parcel is effective upon the later of: (a) 30 days following publication of this ordinance; or (b) the recording of an instrument by -which the fee owner of the Northerly Vacation Parcel `conveys a permanent street or highway easement to the County of Hennepin over a portion of the Northerly Vacation Parcel; provided that such instrument must specifically reference the document recording number assigned to the certificate required by section 10 of this ordinance. This ordinance is not intended to and will not affect the easement rights conveyed to the County of Hennepin by such instrument. Sec. 9. The City Clerk is directed to prepare a certificate of completion of vacation proceedings and to record the vacation in the office of the Hennepin County Registrar of Titles or Hennepin County Recorder, as appropriate. Passed by the City Council of the City of Richfield, Minnesota this May 27th, 2003. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk n Exhibit A Southerly Vacation Parcel: That part of Xerxes Avenue as dedicated in the plat of Southdale Square lying north of the south 16.00 feet thereof and southerly of the following described line: Commencing at the point of termination of Line 1 hereinafter described; thence northerly along said Line 1 a distance of 232.20 feet; thence deflecting 47 degrees 30 minutes to the right and running northeasterly to the east line of said Xerxes Avenue and said line there terminating. Line 1: Beginning at a point on the north line of Lot 5, "Cassin's Outlots", according to the recorded plat thereof, Hennepin County, Minnesota, distant 221.10 feet west of the northeast corner of said Lot 5; thence southerly to a point on the south line of said Lot 5, distant :219.10 feet west of the southeast corner of Lot 5 and there terminating. Northerly Vacation Parcel; That part of Xerxes Avenue as dedicated in the plat of Southdale Square lying north of the following described litre: Commencing at the point of termination of Line 1 hereinafter described; thence northerly along said Line 1 a distance of 232.20 feet;. thence deflecting 47 degrees 30 minutes to the .right and running northeasterly to the east line of said Xerxes Avenue and said line there terminating. Line 1: Beginning a# a point on the north line of Lot 5, "Cassin's Outlots", according to the recorded plat thereof, Hennepin County, Minnesota, distant 221.10 feet west of the northeast corner of said l.ot 5; thence southerly to a point an the south .line of said Lot 5, distant 219.10 feet west of the southeast corner of l_ot 5 and there terminating. _. n 052703-VacateXerxes. d oc .. 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R I O~i Z I O W LL Q WW Q N m ~° J~© ~W~~ ~ ~'~, I Z Q I ~ ~i W I I I I ~~ `~ -~___---AJ..10S_----------- (1..~lI.V.~1$ ~ ,` ,, _ ~ ~°~r _ ~lp;'Fj•l ~~~@ --~-------- __ _ ', ~~ ~ ~ e{ar ~~-..~ ~ ~ d ~ .~.,, .,~ ' - - ~ - - - ~ ~ / ° ^-~ ~,; ~ ,~ ~s ' I`j` { ~- ~ X31 \ ~~ i § 21 \\~ ~\g,^ Iw. trod sl ..va~...~oa.® ~ ..~.t~ ~~. y ~j ~~ I C~ ~\ a~~ _ \` ~ \ I ____ ~- rY s L~ I C c ~; W w s N 0 1- w w N N N REQUEST TO VACATE 6500 BLOCK OF XERXES AVENUE -APRIL ZONING OF PROPERTIES WITHIN 350 FEET L___~ I ! 64TH ST. ~ z R rc a w i R R ~ R z R R m R w R R a R z R i R R ~ R R ~ R R ~ R R R R R R i 65TH ST. i ui u `~ z ~ 0 a ~ a SHE IDAN PARK R MR-3 SOUTHDALE SQUARE c-2 EDINA C-p I C-2 I I I C 2 I C-2 66TH ST. s C-2 C-2 C-2 R R R R MR 1 ~ R R R R MR-1 R R 0 w N ~IIL~ ~~ C ~~~~~ ~~ ~1~~ ~~ ~~1 ~~b ~I~_ LEGEND R =SINGLE FAMILY RESIDENTIAL MR-1 =TWO FAMILY RESIDENTIAL MR-3 = MULTI FAMILY RESIDENTIAL -HIGH DENSITY ~ C-2 =GENERAL COMMERCIAL N 200 0 200 400 600 800 Feet 4-3-03 REQUEST TO VACATE 6500 BLOCK OF XERXES AVENUE -APRIL 2003 LAND USES OF PROPERTIES WITHIN 350 FEET 64TH ST. ~ RCJ / w ~ RES RES ? RES RES Z RES RES m RES w RES RES N RES i RES R K ! RES RES ~ RES RES ~ RES RES RES RES RES RES RES RES 65TH ST. SOUTHDALE SQUARE COM COM I COM I I ICOM I COM 66TH ST. ~ ~ ~ ~ COM COM COM w w w w ~ ~ ~ ~ RES RES ~PLX RES RES ~ RES RES ~PLX RES RE RES EDINA 67TH SL ~~ ~~ ~~ LEGEND ui ui a a z O O ~ a DAN PARK PARK APT ~! T. COM =COMMERCIAL RES =SINGLE FAMILY RESIDENTIAL DPLX =TWO FAMILY RESIDENTIAL APT =APARTMENT BUILDING 200 0 200 400 600 800 Feet a Q 0 a w x [~ ,~, ~-~ Q 4-3-03 SH AGENDA SECTION: AGENDA ITEM # REPORT # J STAFF REPORT CITY COUNCIL MEETING MAY 27, 2003 Consent 5A 118 BETSY CxRISTENSEN, ADMINISTRATIVE REPORT PREPARED BY: SUPPORT SERVICES DIVISION MANAGER NAME, TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: SIGNATURE REVIEWED BY CITY MANAGER: d ~°--~~ U- ITEM FOR COUNCIL CONSIDERATION: Consideration of the request for a new motor vehicle dealer license for Interstate Auto Group, Inc. d/b/a CarHo Auto Sales & Finance, 6529 Penn Avenue South. I. RECOMMENDED ACTION: By Motion: Approve the request for a new motor vehicle dealer license for Interstate Auto Group Inc, d/b/a/ CarHop Auto Sales & Finance, 6529 Penn Avenue South, with the stipulation that the new temporary conditional use permit applied for by the owner of the property is approved by the City Council at the June 24, 2003 City Council meeting. II. BACKGROUND ®n April 29, 2003, the City received the application for a new motor vehicle dealer license for Interstate Auto Group Inc. d/b/a/ CarHop Auto Sales & Finance. The applicant has paid the required licensing fees. ~ The Public Safety background investigation has been completed and reveals the following: Donald Griffin, John Lust and Tim Ehde are the owners of CarHop. They have no known criminal history. 0527 CarHop Dealership License The applicant is in the process of leasing the building located at 6529 Penn Avenue South to operate a used motor vehicle business. The property was previously '~. operated as Richfield Auto Sales. The Zoning Administrator has been contacted to discuss the issuance of a new motor vehicle dealer license at the desired location. Staff was informed the current temporary Conditional Use Permit (CUP) expires on August 14, 2003. The owner of the property has applied for a new temporary Conditional Use Permit. The new Conditional Use Permit is on the agenda for the June 24, 2003 City Council meeting. If the Conditional Use Permit is approved June 24, the Zoning Administrator has indicated that there are no other areas of concern regarding CarHop, as long as all of the requirements of the CUP are followed. The applicant currently has a State of Minnesota Motor Vehicle Dealer's License. A copy of this form has been received. The Public Safety Department has received two calls in the past year regarding this address. They were one vandalism call and one personal injury call. Environmental Health did not receive any complaints for this location in the past year. The applicant agrees to act in a cooperative manner with the Public Safety Department and will comply with all City ordinances and State Statutes. III. BASIS OF RECOMMENDATION ~ ` A. POLICY - The applicant has complied with the provisions of both City codes and State statutes pertaining to motor vehicle dealer licensure. B. CRITICAL ISSUES • If the new temporary Conditional Use permit is denied by the City Council, the dealership must stop operating the business at that time. C. FINANCIAL • N/A D. LEGAL • N/A TERNATIVE KECOMMENDATION(S) ~ Deny the request of a new motor vehicle dealer license. This would result in the applicant not being able to operate a motor vehicle dealership at the property, 6529 Penn Avenue South. V. ATTACHMENTS • None VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Donald Griffin and Tim Edhe.