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10-14-03 agendaCITY OF RICHFIELD, MINNESOTA TUESDAY, OCTOBER 14, 2003 REGULAR CITY COUNCIL MEETING J 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 fo 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 September 23, 2003; (2) Special City Council Worksession of September 23, 2003; (3) Regular City Council Meeting of September 23, 2003; and (4) Special City Council Worksession of September ~~ 30, 2003 ~- J PRESENTATIONS Update on 12th Avenue Metro Transit bus route 2. Annual meeting with Planning Commission 3. Presentation by Richfield Citizens for a Quality Community regarding Richfield Public Schools Capital Projects Levy Referendum for Technology COUNCIL DISCUSSION 4. Counci! discussion • Resolution supporting Richfield Public Schools Capital Projects Levy Referendum for Technology • Hats Off To Hometown Hits Notes: CITY MANAGER'S REPORT r~ 5. City Manager's report • Wednesday, November 12 City Council meeting due to Tuesday, November 11 Veterans' Day holiday (City Code, Section 205.01) Notes: AGENDA APPROVAL 6. Council approval of agenda CONSENT CALENDAR 7. 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 ordinance amending Sections 3.05, 4.07 and 6.02 of Richfield City Charter and schedule public hearing and second reading for November 12, 2003 S.R. No. 219 B. Consideration of approval of first reading of ordinance amending various sections in Chapter 5 of Ricl~fiead ~Gity-C#~ar~er~~ar~d scMedu+e~pu~blic-~a~-fng and =second reading for November 12, 2003 S.R. No.220 C. Consideration of approval of first reading of ordinance amending Sections 2.03 and 3.01 of Richfield City Charter and schedule public hearing and second reading for November 12, 2003 S.R. No.221 D. Consideration of approval of first reading of ordinance repealing Sections 8.04 and 8.05 of Richfield City Charter and schedule public hearing and second reading for November 12, 2003 S.R. No. 222 E. Consideration of approval of first reading of ordinance amending Section 6.01 of Richfield City Charter to come into compliance with State law by removing residency requirement for City Manager and schedule public hearing and second reading for November 12, 2003 S.R. No. 223 F. Consideration of approval of first reading of ordinance amending various sections in Chapter 7 of Richfield City Charter and schedule public hearing and second reading for November 12, 2003 S.R. No. 224 ~ G. Consideration of approval of resolution establishing Health Care. Savings Plan for Police supervisory bargaining unit employees, Law Enforcement Labor Services Local 162 S.R. No. 225 H. Consideration of approval of resolution establishing Health Care Savings Plan for General Services employees S.R. No. 226 I. Consideration of approval of resolution supporting Richfield/Edina Trail Corridor Master Plan S.R. No. 227 J. Consideration of approval of three year lease between City of Richfield and Hat Trick Hockey, Inc. consisting of 1,900 square feet of space in Richfield Ice Arena, 636 East 66th Street S.R. No. 228 K. Consideration of approval of scope of work and authorization to seek bids and submit advertisement for bids to demolish properties as part of Airport Noise Acquisition Program: 6720 18th; 6726 18th; 6732 18th ; 6744 18th; 6701-03 18th; 6709-11 18th; 6700 Cedar; 6328 Cedar; 6344 Cedar; 6412 Cedar and 6444 Cedar Avenues S.R. No. 229 L. Consideration of approval of purchase from Cargill Incorporated Deicing Technology, North Olmstead, Ohio for estimated 1,700 ton of winter deicing salt for 2003/2004 .winter season at price of $27.71 per ton, delivered, plus sales tax S.R. No. 230 M. Consideration of approval of purchase from Flexible Pipe Tool Company for new television camera system for diagnosing wastewater and stormwater pipe problems by Utility Maintenance=Division in amount of $48,793.51 S.R. No. 231 N. Consideration of approval of commercial kennel license renewal for Petsmart, 1100 West 78th Street S.R. No. 232 O. Consideration of approval of veterinary license renewal to operate a veterinary clinic for Animal Medical Clinic, 710 West 66th. Street S.R. No. 233 n P. Consideration of approval of multi-animal residential license renewal: • 7520 Morgan Avenue; three dogs S.R. No. 234 --~ 7301 Wentworth Avenue; three dogs S.R. No. 235 Notes: 8. Consideration of items, if any, removed from Consent Calendar ~~, ,,_ ; ~ Notes: RESOLUTIONS 9. Disciplinary hearing and consideration of resolution regarding civil enforcement for Taco Morelos, 2 West 66th Street, alcohol establishment in Richfield that underwent alcohol compliance check conducted by Richfield Public Safety staff and failed by selling alcohol to underage youth Staff Report No. 236 Notes: 10. General discussion and consideration of resolution regarding street light fee charge to residential and commercial properties for operation_and maintenance costs of City's street light system (deferred from September 9, 2003) Staff Report No. 237 Notes: ~~ OTHER BUSINESS 11. Consideration of Mayor's appointment of HRA Commissioner for five-year term expiring October 2008 Staff Report No. 238 Notes: 12. Claims and payrolls Open forum (additional 15 minutes if more time needed after first Open Forum and by majority vote of the City Council). Each speaker is to keep their comment period to three minutes to allow sufficient time for others. Comments are to be an opporturnty 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: ~'1 13.Adjournment J 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: OTHER BUSINESS AGENDA ITEM # 11 REPORT # 23H J STAFF REPORT CITY COUNCIL MEETING OCTOBER 14, 2002 REPORT PREPARED BY: CHERYL KRUMHOLZ, ADMIN. ASST. Nan ft, TIT/ c COUNCIL PRESENTER: MARTIN J. KIRSCH, MAYOR ITEM FOR COUNCIL CONSIDERATION: Consideration of Council confirmation of Mayor's appointment of Housing and Redevelopment Authority Commissioner to fill an expired term. I. RECOMMENDED ACTION: By motion: Confirm the Mayor's appointment of an HRA Commissioner for a five year term expiring October 2008. III. BACKGROUND The term of HRA Commissioner Mike Sandahl expires October 2003. Commissioner Harms was appointed to the HRA in 1993. III. BASIS OF RECOMMENDATION A. POLICY • Under state law, the Mayor appoints HRA Commissioners subject to confirmation of the City Council. The Mayor has indicated he wilt make an appointment to the HRA for a five year term at the October 14, 2003 Council meeting. B. CRITICAL ISSUES • To ensure a quorum at future meetings, the Council should take action on this item on October 14. C. LEGAL • None 1014hracommissioner IV. ALTERNATIVE RECOMMENDATION~S~ • The Council could decide not to confirm the Mayor's appointment. • If the Council does not approve the Mayor's appointment, a quorum may not be present at future HRA meetings. V. ATTACHMENTS • None. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None. AGENDA SECTION: AGENDA ITEM # REPORT # J STAFF REPORT CITY COUNCIL MEETING OCTOBER 14, 2003 RESOLUTIONS 10 237 REPORT PREPARED BY: JIM OLSON, PROJECT ENGINEER NAME, T/TLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: SIGNATURE REVIEWED BY CITY MANAGER: ~. ITEM FOR COUNCIL CONSIDERATION: General discussion and consideration of resolution regarding a Street Light Fee to be charged to residential and commercial properties to help pay for the operation and maintenance costs on the City's street lights. (Deferred from September 9, 2003). I. RECOMMENDED ACTION: No recommended action. III. BACKGROUND ~ At their annual goal setting session, the City Council directed staff to investigate service fees for street lighting. At the May 13, 2003 Council Worksession, staff presented background information on service fees for street lights and boulevard trees. At the June 10, 2003 Council Worksession, staff further discussed the street light fee and a timeline for implementing such a fee. The public involvement process was also discussed. Council then directed staff to hold a public information meeting ~ on the street light fee. -- At the August 12, 2003 public information meeting approximately 60 residents attended. The residents provided comments and asked questions of staff. The residents were also given an opportunity to provide written comments. These 1014Streetlight Fee comments along with others received from phone calls, emails and letters were tabulated and given to the Council Members. Council deferred action from the Council meeting on September 9, pending full Council attendance. III. BASIS OF RECOMMENDATION A. POLICY Pursuant to Minnesota State Statue, Section 429.101, the City Council may authorize for the charge for certain current services provided by the City, including the operation of a street lighting system. B. CRITICAL ISSUES • Tabling of this consideration would allow for further study on alternative recommendations. C. FINANCIAL • The street light fee would generate approximately $300,000. The cost for single family and duplex residents would be $6.15 per quarter ($24.60 per year). The rate for commercial, multifamily, churches and schools would be $30.75/acre per quarter ($1.23/acre per year). Parks and undeveloped land would not be charged a fee. • The fee would show up as a separate line item on the City's water bill. • Staff has consulted with the City Attorney on the implementation of the street light fee. ~V. ALTERNATIVE RECOMMENDATION(S) ~ • Reduce service and turn off a port-on of the street lights within the City. Staff would recommend that the first lights to turn off would be the mid-block lights on the east-west streets. These are metered. lights owned by Xcel Energy, for which the city pays a higher rate. The estimated savings would be $60,000. This decision would have some safety and security issues. The two mid-block lights on the north-south avenues could also be turned off. These are the City owned ornamental lights. The cost savings would be far less at $24,000. • Investigate the recovery of street light costs through a franchise fee with Xcel Energy. This was one of the suggestions received on the comment cards from the residents. • Retain street light service in the General Fund as it is today. V. ATTACHMENTS ~ Resolution VI. PRINCIPAL PARTIES EXPECTED AT MEETING ~ • None exaected RESOLUTION NO. ~, RESOLUTION AUTHORIZING A STREET LIGHT FEE TO BE CHARGE TO -- RESIDENTIAL AND COMMERCIAL PROPERTIES IN THE CITY OF RICHFIELD FOR THE PURPOSE OF OPERATION AND MAINTENANCE WHEREAS, The City of Richfield deserves good street lighting to ensure safety and security for the residents; and WHEREAS, Every property in the City of Richfield, residential and commercial benefits from streets which are well lighted and maintained through a city street light system; and WHEREAS, pursuant to Minnesota State Statues, Section 429.101, the governing body of a municipality may charge for certain current services provided by the municipality including the operation of a street lighting system. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield, Minnesota as follows: 1. Each property in the City of Richfield will be charged a quarterly service fee for the operation and maintenance of the street lights in the City of Richfield. 2. The rate for properties zoned single family and duplex will be $6.15 per quarter. The rate for other land uses including commercial, apartments, multifamily, churches and schools will be based on property area at $30.75/acre/quarter. 3. These rates will remain in effect until the Council .changes them. Adopted by the City Council of the City of Richfield, Minnesota this 14th day of October, 2003. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk STAFF REPORT AGENDA SECTION: AGENDA ITEM # REPORT # CITY COUNCIL MEETING OCTOBER 14, 2003 Resolutions 9 236 REPORT PREPARED BY: BETSY CxRISTENSEN, SUPPORT SERVICES MANAGER NAME, TITLE COUNCIL PRESENTER: NAME, TITLE DEPARTMENT DIRECTOR REVIEW: ~ ~ SIGNATURE REVIEWED ~Y CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Council consideration of a disciplinary hearing and resolution regarding civil enforcement for Taco Morelos, 2 West 66th Street, that underwent an alcohol compliance check, conducted by Richfield Public Safe staff, and failed b sellin alcohol to undera a outh. I. RECOMMENDED ACTION: By Motion: Approve the attached resolution suspending the license for Taco Morelos to sell alcohol for five (5) consecutive days as a first time violating establishment; levying a fine against the establishment in the amount of $1000 for the first violation; requiring a mandatory meeting with the Public Safety Director to present their individual establishment plan to ensure eliminating any future actions of this kind; and providing proof of the attendance of the manager of the establishment in an alcohol sales awareness program. II. ~ACKGR®UND On May 22, 2003, Richfield Public Safety staff conducted alcohol compliance -- checks at all of Richfield's alcohol establishments, assisted by three underage youth that were 18-20 years of age. These compliance checks were the first alcohol compliance checks conducted in 2003. 1014 Taco Morelos Liquor Compliance Violator ~' Public Safety staff-made arrangements for the youths to enter the establishments --' with -undercover police officers. One minor was served alcohol by a Taco Morelos employee. At no time did the minors consume any alcohol. The underage youth that was served presented an ID and at no time attempted to convince anyone that he was of legal age. The officers identified themselves to the employee after the alcohol was served and a citation was issued. The employee that sold alcohol was charged criminally in court on July 25, 2003 and pled guilty at that time. The employee was fined $300, received a 30-day suspension, and is on probation for ayear-with no same or similar offenses occurring. The action being taken today is for civil enforcement and penalties against the business that holds a license to sell alcohol within the City.. This is the first offense for Taco Morelos. The fine being recommended at this time is intended to recover 100% of the costs for conducting the compliance checks and to penalize the businesses punitively. Compliance checks will continue to occur during 2003, at least once a year, but perhaps more. It is also recommended that 15% of the punitive fines be designated for future alcohol and tobacco education efforts within the community. On July 8, 2003, Taco Morelos representatives and their attorney requested an appearance before a hearing officer to contest the civil penalty. They said that there were two issues that needed additional review. In September of 2003, staff became aware that Taco Morelos no longer wanted to pursue a hearing before a hearing officer to contest the civil penalty. Their attorney relayed to Richfield's City attorney that their request fora 3.2 license in the City of Minneapolis would be determined based on the action that Richfield took against them, and they were inquiring of staff whether there was a way to negotiate some other kind of action. Staff from Public Safety indicated they would not be willing to recommend any action other than that which was outlined in the alcohol resolution which included a fine and a suspension of their license. Taco Morelos may ask for consideration of something different than what is outlined in the alcohol resolution. III. BASIS OF RECOMMENDATION A. POLICY • Resolution No. 9204 specifies certain improper conduct of alcohol license holders and delineates the progressive discipline that can be expected when violations occur, such as the sale of alcohol to minors. • .Staff recommends that the City Council suspend the first time violating establishment license to sell alcohol for five (5) consecutive days and levy a fine against the establishment in the amount of $1000 for the first violation. Staff is also proposing that the first time violating establishment attend a mandatory meeting with the Public Safety Director to present their individual establishment plan to ensure ~ eliminating any future actions of this kind. One employee, preferably the manager, must attend a mandatory alcohol and sales awareness training session, provided by a private arm approved by Public Safety, with the cost of the training to be paid for by the establishment. B. CRITICAL ISSUES • It is a violation of Minnesota State Statute and City ordinance to sell alcohol to underage youth. • Civil enforcement penalties taken in the past by the City Council against several establishments have been severe. This was done to send a message to the establishments and the community that the Council will not tolerate this type of violation to continue in the community and that Richfield youth and their well-being are highly valued. • Citizen representatives of the Richfield Advisory Board of Health support severe actions against establishments in an effort to protect the youth of the community and to send a message that youth and their well-being are a high priority in this City. ~;. FINANCIAL • All costs of conducting compliance checks will be reimbursed through the fines that are levied against an establishment for failing an alcohol compliance check. • Furthermore, 15% of the punitive fines are designated for future alcohol and tobacco educational efforts within the community. D. LEGAL • N/A IV. ALTERNATIVE IZECOMMENDATION(S~ • The Council could decide to take no action against the establishment for the sale of alcohol 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 establishment that sold alcohol to underage youth; however, that would deviate from the guidelines set for progressive discipline in Resolution IVo. 9204. • ATTACI~IVIENTS • Resolution for Taco Morelos discipline. t`~ • PRINCIPAL PARTIES EXPECTED AT MEETING • A representative from the establishment is expected to be in attendance at the meeting as they were notified in writing of the need for someone to be present. RESOLUTION NO. RESOLUTION SUSPENDING THE ON-SALE INTOXICATING AND SUNDAY LIQUOR LICENSES FOR TACO MORELOS, 2 WEST 66TH STREET, AND IMPOSING A CIVIL PENALITY FOR A FIRST TIME ALCOHOL COMPLIANCE FAILURE WHEREAS, Taco Morelos, ("Licensee") holds On-Sale Intoxicating and Sunday Liquor Licenses from the City of Richfield; and WHEREAS, on May 22, 2003, the City of Richfield Public Safety Department conducted a compliance check of the Licensee's establishment and during the compliance check, an employee of the Licensee sold alcohol to a minor; and WHEREAS, this is their first failed alcohol compliance check; and WHEREAS, Licensee appeared before the Richfield City Council on October 14, 2003 and admitted the violation; and the Licensee has 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 On-Sale Intoxicating and Sunday Liquor licenses are hereby suspended for a period of five (5) consecutive days, commencing on a date to be determined by the Public Safety Director, but to take place within 30 days of their Council appearance. 2. A civil penalty of $1000 is hereby imposed. On or before November 14, 2003, the Licensee shall deliver a check or money order payable to the City of Richfield in the amount of $1000. 3. Meet with the Director of Public Safety by November 14, 2003 to present an action plan to ensure future compliance; and 4. One staff member, preferably the manager, must attend an alcohol compliance and sales awareness presentation conducted by a private firm, approved by Public Safety, with all costs to be paid by the establishment. Passed by the City Council of the City of Richfield this 14th day of October 2003. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk AGENDA SECTION: AGENDA ITEM # REPORT # J STAFF REPORT CITY COUNCIL MEETING OCTOBER 14, 2003 Consent 7P 235 REPORT PREPARED BY: BETSY CxRISTENSEN, ADMINISTRATIVE SUPPORT SERVICES MANAGER NAME, TITLE COUNCIL PRESENTER: NAME TITLE DEPARTMENT DIRECTOR REVIEW: ~, ~a ~ ~~~ SIGNATURE REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of a request for renewal of amulti-animal residential kennel license for Jane Noll West, 7301 Wentworth Avenue South. RECOMMENDED ACTION: By Motion: Approve the request for renewal of amulti-animal residential kennel license for Jane Noll West, 7301 Wentworth Avenue. II. BACKGROUND On June 11, 2003, Ms. West submitted an application for the renewal of her multi- animal residential kennel license. She owns three dogs. Her application is complete and contains the signatures of three contiguous property owners. A Community Service Officer conducted an inspection of the property on June 19, 2003. There were no apparent problems found with the premises at that time. It appeared to be free of feces and odor. The Environmental Health staff has no history of receiving any complaints for this address. 1014 West Multi-Animal Residential Kennel There were no police reports on or contacts with this address in the past year. III. BASIS OF RECOMMENDATION A. POLICY • Although this application is for three dogs, it does not exceed the maximum number of six that was approved by the Council as policy on July 22, 1991. • The City has adopted a policy that staff is to notify neighbors surrounding the area of the multi-animal residential kennel license. Staff did not receive any phone calls or letters regarding this application. B. CRITICAL ISSUES • N/A C. FINANCIAL • N/A D. LEGAL • N/A _ IV. ALTERNATIVE RECOMMENDATION(S~ • Deny the request for the renewal of a residential kennel license for Jane West; however, the Public Safety Department has not found any basis for a denial V. ATTACHMENTS • None VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Jane Noll West AGENDA SECTION: Consent AGENDA ITEM # 7P REPORT # 234 J STAFF REPORT CITY COUNCIL MEETING OCTOBER 14, 2003 REPORT PREPARED BY: BETSY CxRISTENSEN, ADMINISTRATIVE SUPPORT SERVICES MANAGER NAME, TITLE COUNCIL PRESENTER: NAME, TITLE DEPARTMENT DIRECTOR REVIEW: _ ~ ~ o SIGNATURE REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of a request for renewal of amulti-animal residential kennel license for Sheila O'Brien, 7520 Mor an Avenue South. I. RECOMMENDED ACTION: By Motion: Approve the request for a renewal of amulti-animal residential kennel license for Sheila O'Brien, 7520 Morgan Avenue South. III. BACKGROUND ~ On July 9, 2003, Sheila O'Brien submitted an application for the renewal of a multi- animal residential kennel license. She owns three dogs. Ms. O'Brien's application contains the signatures of three contiguous property owners. A Community Service Officer conducted an inspection of the property on July 24, 2003. There were no apparent problems found at that time. The animals appear healthy and well cared for. The Environmental Health staff has no history of receiving complaints for this address. 1014 O'Brien Multi-Animal Residential Kennel There were no police reports on or contacts with this address during the past year. Although this application is for three dogs, it does not exceed the maximum number of six animals that was approved by the Council as policy on July 22, 1991. III. BASIS OF RECOMMENDATION A. POLICY • The City has adopted a policy that staff notifies neighbors surrounding the area of the multi-animal residential kennel license. Staff did not receive any letters or phone calls regarding this application. B. CRITICAL ISSUES • N/A C. FINANCIAL • N/A D. LEGAL • N/A ~--~ IV. ALTERNATIVE RECOMMENDATION(S~ -- Deny the request for the renewal of amulti-animal residential kennel license for Sheila O'Brien; however, the Public Safety Department has not found any basis for a denial. V. ATTACHMENTS • None VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Sheila O'Brien AGENDA SECTION: Consent AGENDA ITEM # 70 REPORT # 233 STAFF REPORT CITY COUNCIL MEETING OCTOBER 14, 2003 BETSY CxRISTENSEN, ADMINISTRATIVE REPORT PREPARED BY: SUPPORT SERVICES MANAGER NAME, TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: ® Q~ J ~ SIGNATURE REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of a request for the renewal of a veterinary license to operate a veterinary clinic for Animal Medical Clinic, 710 West 66th Street. I. RECOMMENDED ACTION: By Motion: Approve the request for the renewal of a veterinary license to operate a veterinary clinic for Animal Medical Clinic, 710 West 66th Street. II BACKGROUND I On September 2, 2003, Animal Medical Cllnlc submitted an application for the renewal of their veterinary license. The application was complete and the $173 fee has been received. A Community Service Officer conducted an inspection of the property on September 18, 2003. There were no apparent problems found at that time. The Environmental Health Staff did not receive any complaints regarding this address in the past year. 1014 Animal Medical Clinic Renewal Police had eight contacts with this address in the past year. They responded to one ~~, suspicious person, one suspicious vehicle, one property damage accident, afollow- up investigation, two burglary alarms, one property damage/hit and run, and one medical assist. None of these police contacts were related to the operation of the i/eterinary Clinic. The City has previously issued a veterinary license to the Animal Medical Clinic. III. BASIS OF RECOIvIlVIENDATION I A. POLICY The applicant has complied with the City codes pertaining to a veterinary license. $. CRITICAL ISSUES N/A C. FINANCIAL N/A I~. I.,EGAL -~, • N/A IV ALTERNATIVE RECOMMENDATION(S~ Deny the request for the renewal of a veterinary license for Animal Medical Clinic; however, the Public Safety Department has not found any basis for a denial. `I. ATTACHMENTS I None VI. PRINCIPAL PARTIES EXPECTED AT MEETING Dr. Locketz ,~ AGENDA SECTION: Consent AGENDA ITEM # 7N REPORT # 232 STAFF REPORT CITY COUNCIL MEETING OCTOBER 14, 2003 BETSY CxRISTENSEN, ADMINISTRATIVE REPORT PREPARED BY: SUPPORT SERVICES DIVISION MANAGER NAME, TITLE COUNCIL PRESENTER: NAME, TITLE DEPARTMENT DIRECTOR REVIEW: ® /~~ V SIGNATURE REVIEWED BY CITY MANAGER: ~ _ ITEM FOR COUNCIL CONSIDERATION: Consideration of the request for the renewal of a commercial kennel license for Petsmart, 1100 West 78th Street. I. RECOMMENDED ACTION: By Motion: Approve the request for the renewal of a commercial kennel license for Petsmart, 1100 West 78th Street. II BACKGROUND ~ On September 8, 2003, Petsmart submitted an application for the renewal of their commercial kennel license. This application is complete and the $173 fee has been received. A Community Service Officer conducted an inspection of the property on September 18, 2003. There were no apparent problems found at this time. .The Environmental Health staff did not receive any complaints regarding this address in the past year. Police had nine contacts with this address in the past year. They responded to one suspicious person, three burglary alarms, two animal assists, one suspicious 1014 Petsmart Commercial Kennel Renewal activity, one vehicle theft/delay, and one suspicious vehicle. None of these police contacts were related to the operation of the commercial kennel. The City has previously issued a commercial kennel license to Petsmart. III. BASIS OF IZECONIMENDATION A. POLICY The applicant has complied with all of the City codes pertaining to a commercial kennel license. $. CRITICAL ISSUES N/A C. FINANCIAL • N/A D. LEGAL N/A I I`I ALTERNATIVE RECOMMENDATION(S) ~ ® None I V ATTACHMENTS I None VI PRINCIPAL PARTIES EXPECTED AT MEETING None AGENDA SECTION: Consent AGENDA ITEM # ]M REPORT # 231 J STAFF REPORT CITY COUNCIL MEETING OCTOBER 14, 2003 REPORT PREPARED BY: ROBERT HINTGEN, UTILITY SUPERVISOR NAME, TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: ~ ~~~ SIGNATURE REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of purchase a new television camera system for the Utility Maintenance Division. RECOMMENDED ACTION: By Motion: Approve the purchase of a new television camera system from Flexible Pipe Tool. Company in the sum of $48,793.51. The new system would be retrofitted into the existing television trailer used for diagnosing problems in wastewater and stormwater pipes. III. $ACKGROUND ~ The City currently has a 1993 pull behind television camera system. It has fully depreciated and is scheduled to be replaced in 2003. The new camera set-up will be retrofitted to the existing trailer and will use. the existing generator, cable reel and coax cable. The camera is used to help utility workers diagnose problems in the piping systems. The quote price from Flexible Pipe Tool Company includes pick-up and delivery of the existing trailer. The current 2003 budget includes $60.,000 for the purchase of this equipment covering. any change orders if any unforeseen items come up in the retrofit process. 1014TVCamera III. BASIS OF RECOMMENDATION A. POLICY • When the purchase of materials, merchandise, equipment or construction exceeds $25,000, authority to purchase shall be submitted to the City Council for consideration. • Following are the two quotes received for this purchase: CCV Engineering & Manufacturing $50,714.00 Flexible Pipe Tool Company $48,793.51 B. CRITICAL ISSUES • Approval at the October 14, 2003 Council meeting will facilitate delivery of the new television camera system. C. FINANCIAL • The approved 2003 wastewater budget contains $60,000 for this purchase. D. LEGAL • Purchases of $10,000 to $50,000 may be made by obtaining two or more quotations when possible. The City met these requirements. IV. ALTERNATIVE RECOMMENDATION(S~ • Council may delay approval to a later meeting, however, that would delay the delivery of the new system. • Council may choose to deny approval and direct staff to obtain another quote, however, staff believes this is the best quote from a reputable company which includes pick-up and delivery of the existing trailer. V. ATTACHMENTS • None VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None AGENDA SECTION AGENDA ITEM # REPORT # J STAFF REPORT CITY COUNCIL MEETING OCTOBER 14, 2003 Consent 7L 230 REPORT PREPARED BY: DAVE ZELAZNY, STREET SUPERVISOR NAME, TITLE COUNCIL PRESENTER: ' NAME, TITLE DEPARTMENT DIRECTOR REVIEW: ~ ~/y~ SIGNATURE REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of purchase of winter deicing salt. RECOMMENDED ACTION: By Motion: Authorize the purchase of an estimated 1,700 ton of winter deicing salt for the 2003/2004 winter season from Cargill Incorporated Deicing Technology, North Olmsted, Ohio at the price of $27.71 per ton, delivered, plus sales tax. II. BACKGROUND Each year the City purchases rock salt, to control ice on road surfaces during the winter season. III. BASIS OF RECOMMENDATION A. POLICY ~~ • The City participates in a joint purchasing agreement with the State of Minnesota. • The State of Minnesota solicited bids for all the participants in the joint purchase agreement. 1014sa1t B. CRITICAL ISSUES ~-' The City is obligated to purchase 80% of the agreed amount, and may purchase up to 120% of the agreed amount, in accordance with the contract. C. FINANCIAL • A recent history of prices for this product is: Year Base Price Vendor 99/00 24.02/ton Cargill Inc., North Olmsted, Ohio 00/01 26.33/ton Cargill Inc., North Olmsted, Ohio 01/02 39.02/ton I.M.C. Salt Inc., Overland Park, Kansas 02/03 27.97/ton Cargill Inc., North Olmsted, OH • Funding for this purchase is included in the 2003 and 2004 operating budgets for street maintenance. D. LEGAL • When the purchase of merchandise, materials, equipment, or construction exceeds $50,000, authority to purchase shall be submitted to the City Council for consideration. IV. ALTERNATIVE RECOMMENDATION(S~ ~ Council could choose to discontinue the use of rock salt to control ice on road surfaces during the winter season. However, staff is not aware of a more effective means of provided the safest road condition possible under icy conditions. Although the City is obligated to purchase 80% of the agreed amount for the 2003/2004 winter season, further participation in the cooperative State bidding process for deicing salt could be abandoned. V. ATTACHMENTS • None. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None. AGENDA SECTION: Consent AGENDA ITEM # 7g REPORT # 229 J STAFF REPORT CITY COUNCIL MEETING OCTOBER 14, 2003 REPORT PREPARED BY: JULIE URBAN, COMMUNITY DEVELOPMENT SPECIALIST NAME, TITLE COUNCIL PRESENTER: ~J DEPARTMENT DIRECTOR REVIEW: SIGNATURE REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration to approve the scope of work and authorize staff to seek bids to demolish buildings acquired through the Airport Noise Acquisition Program and submit an advertisement for bids. I. RECOMMENDED ACTION: By Motion: Approve the attached scope of work and authorize staff to seek bids and to submit an advertisement for bids to demolish the following properties as part of the Airport Noise Acquisition Program: 6720 18th Avenue, 6726 18th Avenue, 6732 18th Avenue, 674418th Avenue, 6701-03 18th Avenue, 6709-11 18th Avenue, 6700 Cedar Avenue, 6328 Cedar Avenue, 6344 Cedar Avenue, 6412 Cedar Avenue and 6444 Cedar Avenue. II. BACKGROUND • Several properties located within the Airport Noise Acquisition Program (ANAP) area have been purchased with a $10 million grant from the `J Metropolitan Airports Commission (MAC). • Eighteen single family houses and two duplexes have been purchased and vacated. Fourteen of these houses were purchased and moved by house movers. A request for quotes will soon be issued to move one recently- 1014demolitionspecs.doc vacated house. The remaining six houses would be demolished under the proposed bid package. ~' Four apartment buildings have been purchased. Two of the four buildings '~--= are vacant. The remaining two buildings will be vacant by the end of October. • The commercial building at 6700 Cedar Avenue has been purchased and vacated. • A scope of work has been prepared to bid all buildings for demolition with assistance from W.D. Shock, which has considerable experience with this type of process. • An ad would be published on October 30. A pre-bid conference would be held the week of November 3. Bid packages would be due November 13, and the Council would be asked to award bids on November 25, 2003. • The buildings would be demolished in stages as environmental abatement work is completed on the various buildings. III. BASIS OF RECOMMENDATION A. POLICY • The six houses proposed to be demolished are vacant. These houses were not bid upon to be moved because of their height. • The apartment and commercial buildings are or will soon be vacant and need to be demolished. They are not candidates to be moved because of their size and the lack of available move sites nearby. B. CRITICAL ISSUES • W.D. Schock will provide assistance throughout the demolition ~, process to ensure that the specifications are carried out appropriately. - • Separate subcontractors have been or will be hired to conduct environmental abatement work. Abatement work on the houses will be completed by the end of October. Quotes will soon be requested for abatement work on the two vacant apartment buildings and commercial building. • Environmental testing and abatement work will commence on the remaining two apartment buildings once they are vacant. C. FINANCIAL • Bidding all the properties in one package will likely result in lower bids. • Funds will be provided from the MAC grant. D. LEGAL • An ad will be submitted to the Sun-Current and any other appropriate publication advertising the bids.. IV. ALTERNATIVE RECOMMENDATION(S) ~ • Decide not to advertise for bid at this time. V. ATTACHMENTS ~ • House Demolition Scope of Work • Map VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A ~--, SECTION 02060 -BUILDING DEMOLITION -" PART 1- GENERAL 1.1 RELATED DOCUMENTS A. Drawings and general provisions of Contract, including General and Supplementary Conditions and Division-1 Specification sections, apply to work of this section. 1.2 DESCRIPTION OF WORK A. Work of this Section includes all labor, materials, equipment and related services necessary to complete demolition and the legal disposal of demolished materials as shown on the Drawings or specified herein. B. Schedule of Demolition Work: Demolition requires removal and disposal of demolition material at a legal landfill or recycling facility of the following: . 1. Building systems and building foundations. 2. All concrete and bituminous pavements within the demolition limits indicated on Drawings. 3. Miscellaneous site improvements within the demolition limits indicated on Drawings. 4. Site Utilities as specified herein. C. Related Work Specified Elsewhere: 1. Section 02110 -Site Clearing. 2. Section 02200 -Earthwork for backfill and compaction. 3. Section 02900 -Landscape work for fmal grading and seeding. D. Work by Others Prior to Demolition Removal and legal disposal or recycling of hazardous material including asbestos-containing material, PCB- containing light fixture ballasts, and fluorescent light tubes. 1.3 QUALITY ASSURANCE /CONTROL OF INSTALLATION A. Contractor Responsibility: In case of ambiguities, discrepancies or irregularities in the drawings, specifications, manufacturer's instructions, site conditions, or applicable codes and standards; request clarification from the Architect before proceeding. The cost of correcting work done as a result of proceeding without obtaining clarification will be borne solely by the Contractor. B. Codes and Standards: Perform excavation work in compliance with applicable requirements of governing authorities having jurisdiction. 1.4 REQUIltEMENTS OF REGULATORY AGENCIES A. Conform to the reauirements of all laws, ordinances, rules, regulations and orders of any public authority having jurisdiction, including, but not limited to, Richfield Code of Ordinances, Minnesota State Building Code, OSHA Regulations, and EPA/MPCA Regulations. 1. Contractor shall have an employee lead monitoring program in-place in accordance with OSHA regulations. B. The C ontractor s hall, a t his expense, secure and pay for all permits, governmental fees, licenses and disconnection charges necessary for the proper execution of the demolition work. 1.5 SUBMITTALS Section 02060 - 1 ~". A. Demolition Schedule: Submit proposed demolition procedures and operational sequence for review and acceptance to 1~ Construction Manager prior to start of work, including coordination for shut-off, capping and continuation of utilities. B. Submit copies of permits, required legal notices, and disconnection certificates to Construction Manager, including the following: 1. City of Richfield Building Pemut Application and Building Permit. 2. MPCA, EPA and Department of Health notifications, responses and amendments. C. Submit Name and address of legal landfill which will be used for disposal. D. Submit Record Document drawing indicating location and depth of all capped utilities. 1.6 JOB CONDITIONS A. The Buildings shall be vacated and use discontinued prior to start of demolition work. B. Owner assumes no responsibility_,for actual condition of structures t o b e d emolished. Conditions a xisting a t t ime o f inspection for bidding purposes will be maintained by Owner in so far as practicable. However, variations may occur by Owner's hazardous material removal and salvage operations prior to demolition. C. Items of salvage value to Contractor maybe removed as work progresses, but must be transported from site as they are removed. Storage and sale of removed items on site shall not be permtted. D. ExQlosives: Use of explosives will not be permitted. E. Traffic: Conduct demolition operations and removal of debris to ensure m;n;mum interference with roads, streets, walks, and other adjacent occupied or used facilities. Do not close or obstruct streets or other occupied or used facilities without City permit. Provide alternate routes around closed or obstructed traffic ways, and flagmen and traffic control as required by the City of Richfield. F. Extermination: Employ a licensed exterminator and treat entire building in accordance with governing health regulations for rodent and insect control, and as necessary to receive a Richfield Building Permit. G. Working_Hours: T he C ontractor s hall a dhere t o t he w orking h ours a nd n Oise r estrictions a stablished b y t he C ity o f Richfield. 1.7 PROTECTION AND ASSUMPTION OF LIABILITY A. Upon receipt of "Notice to Proceed", the Contractor shall assume possession and liability of the site and premises as soon as possible. The Contractor shall secure, guard and protect site and premises as necessary to hinder trespass, vandalism, and theft. B. Provide. erect and maintain barricades, scaffolding, sidewalk bridges, fencing, lighting and guard rails as required to protect the general public, workers, and adjacent property. C. Ensure safe passage of persons around area of demolition. Conduct operations to prevent injury to adjacent buildings, structures, other facilities, and persons. D. Prevent movement, settlement or collapse of adjacent structures, services, sidewalks, driveways and trees. Assume liability for such movement, settlement or collapse. E. Repair damages caused to adjacent facilities or services by demolition operations at no cost to Owner or adjacent property owner. Section 02060 - 2 /-`. 1.8 EXISTING UTII,ITY SERVICES A. Maintain existing utilities indicated to remain in service and protect from damage during demolition. B. Do not interrupt existing utilities serving occupied or used facilities, except after notification and authorization from appropriate utility company and City. Provide temporary services during interruptions to existing utilities as acceptable to appropriate utility company and City. C. Excavation, backfillina and resurfacing o f a yeas o utside t he p roperty 1 Ines a s r equired t o c omplete d isconnection o f utility services shall conform to the specifications and requirements of the City. PART2-PRODUCTS (not applicable) PART 3 -EXECUTION 3.1 POSSESSION AND INSPECTION A. Upon receipt of "Notice to Proceed", the Contractor shall assume possession and liability of the site and premises as soon as possible. The Contractor shall secure, guard and protect the site and premises from unauthorized persons as necessary to hinder trespass, vandalism, and theft. B. Prior to commencement of demolition work, inspect site and premises. Photograph any existing conditions of adjacent structures, surfaces, equipment or surrounding properties which could reasonably be misconstrued as damage resulting from demolition work. Date and label location of photographs and provide duplicate set to Construction Manager prior to start of work. 3.2 ENVIRONMENTAL CONTROLS A. Use water sprinkling, temporary enclosures, and other suitable methods to limit dust and dirt rising and scattering in air to lowest practical level. Comply with governing regulations pertaining to environmental protection. B. Control potential erosion, pollution and siltation with the use of hay/straw bales, fences of geotextile materials or other suitable material(s) acceptable to the Construction Manager and governing authority. C. In the event that underground gas or oil tanks are uncovered during demolition, the contractor must notify the Construction Manager. Such tanks must be removed in accordance with PCA regulations and additional costs will be either negotiated or compensated in accordance with Section 00800 -Supplemental General Conditions. D. In the event that existing water wells are uncovered, the contractor must notify the Construction Manager. Such wells must be removed and sealed in accordance with Minnesota Department of Health and/or Department of Natural Resources requirements, and additional costs will be either negotiated or compensated in accordance with Section 00800 - Supplemental General Conditions. E. Clean adjacent structures and improvements of dust and dirt caused by demolition operations, as directed by Construction Manager or governing authorities. Return adjacent areas to prior existing condition after completion of demolition operations. 3.3 DISCONNECTION OF UTILITIES Section 02060 - 3 ~ A. Disconnect (or arrange and pay for the disconnection of) utility service connections to buildings to be demolished such as water, sewer, gas, electricity, cable and telephone in accordance with the regulations of the appropriate utility. B. Cap, seal, or terminate all utilities as required by the City of Richfield by approved trade contractors. C. When work is required within the street or City Properly, obtain necessary permits and approvals. All such work including excavation, backfill, compaction, and resurfacing must conform to the specifications and requirements of the City of Richfield. D. Provide by-pass connections as necessary to maintain continuity of services to occupied buildings. Provide minimum of 72 hours advance notice to Construction Manager if shut-down of service is necessary during change-over. E. Coordinate disconnection and removal of utility owned equipment with appropriate utility companies prior to starting demolition. Place markers to indicate location of disconnected services for coordination and approval of Construction Manager. F. Identify remaining service lines and capping locations on Project Record documents. 3.4 SALVAGE A. Items of salvage value to Contractor may be removed as work progresses, and salvaged items must be transported from site as they are removed. Storage and sale of removed items on site shall not be nernutted. 3.5 DEMOLITION A. Completely demolish building structures and building systems in an orderly and careful manner using methods as necessary within regulations of and in accordance with governing authorities. ~. -- B. All demolition material must be removed and transported away from the site and disposed of properly. This includes all structure materials, basement walls, foundations, and floor slabs. C. The Contractor shall remove all other at grade masonry, concrete slabs, steps, and driveways from the property. D. The Contractor shall remove all other minor structures from the site. E. The Contractor shall remove all fences except those that are situated on a property line common to property not owned by Owner. Other fences shall be removed only as directed by Owner or the Engineer. Retaining walls and fences shall only be removed after inspection by the Engineer: F. The Contractor may not cut or remove any tree from a site without prior permission from Owner or the Engineer. If any trees are cut or destroyed by the Contractor without prior approval, the Contractor will pay Owner damages of $200 per tree. Any such damages will be deducted from the Contractor's payment. G. Remove all debris, refuse and building material from each site at the end of each working day. H. Completely demolish below-grade construction and concrete slabs-on-grade I. Keep work adequately sprinkled to minimise dust. Provide hoses and water main or hydrant connections for this purpose. Coordinate use of water with Construction Manager if use may create hazardous or objectionable conditions. 3.6 EXCAVATION A. Excavation is limited to work ancillary to demolition work for structures, pavements, foundations, underground utilities and other items indicated to be demolished and removed. Section 02060 - 4 .-~ 3.7 STABILITY OF EXCAVATIONS A. Slope sides of excavations to comply with local codes, ordinances and requirements of agencies having jurisdiction. Shore and brace where sloping is not possible due to space restrictions or stability of material excavated. Maintain sides and slopes of excavations in safe condition until the completion of backfilling. 3.8 DEWATERING A. Prevent surface and ground water from flowing into excavations and flooding project site. B. Do not allow water to accumulate in excavations. Remove water to prevent soil changes detrimental to stability of sub- grades. Provide and maintain pumps, sumps, suction and discharge lines, and other dewatering system components necessary to convey water away from excavations. 3.9 DISPOSAL OF DEMOLISHED MATERIALS A. Regularly remove all demolished materials from site as the work progresses. B. Transport materials in accordance with transport permits, and transportation regulations. C. Dispose of materials (which will not be recycled) in a legal landfill. 3.10 BASIS OF PAYMENT A. For the purpose of preparing a bid, the Contractor shall include the cost for all work described in this Section and as shown on the Drawings on a Lump Sum price basis in the Total Bid. ~~_ B. In addition to the Lump Sum cost, a separate cost for additional work on a unit price basis shall also be included in the Total Bid for the estimated quantities listed below. Each unit price shall include all necessary costs, including overhead and profit, bond, and labor, material, equipment, tools, permits, fee and taxes. C. Differences between the Estimated Quantities shown on the Proposal Form and the quantities actually used shall result in an adjustment to the final Contract Amount at project completion. Unit Prices shall have the same price for additional work as for deducted work. D. Unit Price items for additional work included in this Section shall not be subject to the provisions of Supplementary General Conditions, Section 39 -Increased or Decreased Quantities of Work. END OF SECTION 02060 Section 02060 - 5 SECTION 02110 -SITE CLEARING PART1-GENERAL 1.1 RELATED DOCUMENTS A. Drawings and general provisions of Contract, including General and Supplementary Conditions and Division-1 Specification sections, apply to work of this section. 1.2 SUMMARY A. This Section includes the following: 1. Topsoil stripping. 2. Removing above-grade improvements. 3. Removing below-grade improvements. B. Related Work Specified Elsewhere: 1. Section 02060 -Building Demolition 2. Section 02200 -Earthwork 3. Section 02900 -Landscape Work for fmal grading and seeding 1.3 PROJECT CONDITIONS: A. Traffic: Conduct site clearing operations to ensure nunimum interference with roads, streets, walks, and other adjacent occupied or used facilities. Do not close or obstruct taxiways, runways, streets, walks or other occupied or used facilities without permission from authorities having jurisdiction. ~- B. Protection of Existing Improvements: P rovide p rotection n ecessary t o p revent d amage t o e xisting i mprovements - indicated to remain in place. 1. Protect improvements outside the demolition limits. 2. Restore damaged improvements to their original condition, as acceptable to the owner. 1.4 EXISTING SERVICES A. General: Indicated locations are approximate; determine exact locations before commencing work. B. Arrange and pay for disconnecting, removing, .capping, and plugging utility services. Notify affected utility companies in advance and obtain approval before starting this Work. C. Place markers to indicate location of disconnected services. Identify service liens and capping locations on Project Record Documents. PART 2 -PRODUCTS (Not applicable) PART 3 -EXECUTION 3.1 SITE CLEARING: A. General: Remove trees, shrubs, grass and other vegetation, improvements, or obstructions as a part of the demolition work. Remove similar items elsewhere on site or premises as specifically indicated. Removal includes digging out and off-site disposal of stumps and roots. Section 02110 - 1 B. Topsoil: Topsoil is defined as friable clay loam surface soil found in a depth of not less than 4". Satisfactory topsoil is reasonably free of subsoil, clay lumps, stones, and other objects over 2" in diameter, and without weeds, roots, and other objectionable material. 1. Strip topsoil to whatever depths encountered in a manner to prevent intermingling with underlying subsoil or other objectionable material. Remove heavy growths of grass from areas before stripping. 2. Stockpile topsoil in storage piles in areas shown, or where directed. Construct storage piles to provide free drainage of surface water. Cover storage piles if required to prevent wind erosion. 3. Dispose of unsuitable or excess topsoil same as waste material, herein specified. C. Removal of Improvements: Remove existing above-grade and below-grade improvements as indicated and as necessary to facilitate the demolition. 3.2 DISPOSAL OF WASTE MATERIALS A. Burning on Owner's Property: Burning is not permitted on Owner's property. B. Removal from Owner's Property: Remove waste materials and unsuitable and excess soil from Owner's property. END OF SECTION 02110 Section 02110 - 2 SECTION 02200 -EARTHWORK PART1-GENERAL 1.1 RELATED DOCUMENTS A. Drawings and general provisions of the Contract, including General and Supplementary Conditions and Division-1 Specification sections, apply to work of this section. 1.2 DESCRIPTION OF WORK A. This section includes the following: 1. Excavation and stockpiling of satisfactory fill in conjunction with demolition. 2. Restoration of site to adjacent grades with satisfactory fill. 3. Rough grading for drainage. B. Related Work Specified Elsewhere: 1. Section 02060 -Building Demolition. 2. Section 02110 -Site Clearing 3. Section 02900 -Landscape Work for final grading and seeding 1.3 DEFINITIONS A. Excavation is limited to work ancillary to demolition work for structures, pavements, foundations, underground utilities and other items indicated to be demolished and removed. B. Structure: B uildings, foundations, s labs, s teps, c orbs, o r o ther man-made features occurring above or below ground ~- surface. C. Borrow: Soil material obtained off-site when approved soil material is not available from excavations. D. Utilities include on-site underground pipes, conduits, ducts, and cables, as well as underground services within building lines. 1.4 QUALITY ASSURANCE /CONTROL OF INSTALLATION A. Contractor Responsibility: In case of ambiguities, discrepancies or irregularities in the drawings, specifications, manufacturer's instructions, site conditions, or applicable codes and standards; request clarification from the Architect before proceeding. The cost of correcting work done as a result of proceeding without obtaining clarification will be borne solely by the Contractor. B. Codes and Standards: Perform excavation work in compliance with applicable requirements of governing authorities having jurisdiction. C. Testing and Inspection Service: The Owner will employ and pay for a qualified independent geotechnical testing and inspection laboratory to perform soil testing and inspection service during earthwork operations. 1.5 PROJECT CONDITIONS A. Existing: Utilities: Locate existing underground utilities in areas of excavation work. If utilities are to remain in place, provide adequate means of support and protection during earthwork operations. 1. Should uncharted, or incorrectly charted, piping or other utilities be encountered during excavation, consult utility owner immediately for directions. Coordinate with owner and utility companies in keeping respective services and facilities in operation. Repair damaged utilities to satisfaction of utility owner. Section 02200 -1 2. Do not interrupt existing utilities serving facilities during occupied hours, except when permitted in writing by Architect/Engineer and then only after acceptable temporary utility services have been provided. Provide minimum of 48-hour notice to Construction Manager, and receive written notice to proceed before interrupting any utility. 3. Demolish and completely remove from site existing underground utilities indicated to be removed. Coordinate with utility companies for shut-off of services if lines are active. B. Protection of Persons and Property: Barricade open excavations occurring as part of this work and post with warning lights. 1. Protect structures, utilities, sidewalks, pavements, and other facilities from damage caused by settlement, lateral movement, undermining, washout and other hazards created by earthwork operations. PART2-PRODUCTS 2.1 SOIL MATERIALS A. General: Provide approved borrow materials from off-site when sufficient approved soil materials are not available from excavations. B. Satisfactory Soil Materials: ASTM D2487 soil classification groups GW, GP, GM, SW, SP and SM; free of rock or gravel larger than 2 inches in any dimension, debris waste, frozen materials, vegetation and deleterious matter. C. Unsatisfactory Soil Materials: ASTM D2487 soil classification groups GC, SC, ML, MH, CL, CH, OL, OH and PT. D. Backfill and Fill Materials: Satisfactory soil materials. PART 3 -EXECUTION -'~ 3.1 FIELD QUALITY CONTROL A. Quality_,Control Testing During Construction: Allow testing service to inspect and approve each sub-grade and fill layer before further construction work is performed. B. If in opinion of the Construction Manager, based on testing service reports and inspection, fill which has been placed is below specified density, provide additional compaction until specified density is obtained. 3.2 ENVIRONMENTAL CONTROLS A. Use water sprinkling, temporary enclosures, and other suitable methods to limit dust and dirt rising and scattering in air to lowest practical level. Comply with governing regulations pertaining to environmental protection. B. Control potential erosion, pollution and siltation with the use of hay/straw bales, fences of geo-textile materials or other suitable material(s) acceptable to the Construction Manager and governing authority. 3.3 BACKFILL A. Backfill excavations promptly, but not before completing the following: 1. Inspection and acceptance of demolition.excavation or area of fill by the Construction Manager. 2. Removal of trash and debris from excavation. 3.4 FILL n A. Preparation: Remove vegetation, topsoil, debris, wet, and unsatisfactory soil materials, obstructions, and deleterious materials from ground surface prior to placing fills. Section 02200 - 2 1. Plow strip, or break up sloped surfaces steeper than 1 vertical to 4 horizontal so fill material will bond with existing surface. B. When subarade or existina around surface to receive fill has a density less than that required for fill, break up ground surface to depth required, pulverize, moisture-condition or aerate soil and re-compact to required density. C. Place fill material in layers to required elevations for each location listed below. 1. Under grass, use satisfactory excavated or borrow soil material. 3.5 MOISTURE CONTROL A. Uniformly moisten or aerate subarade and each subsequent fill or backfill layer before compaction to within 2 percent of optimum moisture content. 1. Do not place backfill or fill material on surfaces that are muddy, frozen, or contain frost or ice. 2. Remove and replace, scarify and air-dry satisfactory soil material that is too wet to compact to specified density. a. Stockpile or spread and dry removed wet satisfactory soil material. 3.6 COMPACTION A. Place backfill and fill materials in layers not more than 8 inches in loose depth for material compacted by heavy compaction equipment, and not more than 4 inches in loose depth for material compacted byhand-operated tampers. B. Percentage of Maximum Density Requirements: Compact soil to not less than the following percentages of maximum dry density, in accordance with ASTM D 1557: 1. Under lawn or unpaved areas, compact top 6 inches below sub-grade and each layer of backfill or fill material at 90 percent maximum dry density. 3.7 GRADING A. General: U niformly grade areas to smooth surface, free from irregular surface changes. Comply with compaction requirements and grade to cross sections, lines, and elevations indicated. 1. Provide a smooth transition between existing adjacent grades and new grades. 2. Cut out soft spots, fill low spots, and trim high spots to conform to required surface tolerances. B. Site Gradina: Slope grades to drain away from buildings and to prevent ponding. Finish sub-grades to required elevations within the following tolerances: 1. Lawn or Unpaved Areas: Plus or minus 0.10 foot. 3.8 GRADING A. General: Uniformly grade areas within limits of grading under this Section to provide positive drainage and a compacted surface with uniform levels or slopes to meet existing grades. 3.9 MAINTENANCE ~~ A. Protect newly eraded areas from traffic and erosion. Keep free of trash and debris. B. Repair and re-establish grades in settled, eroded, and rutted areas to specified tolerances. Section 02200 - 3 ~-. C. Reconditioning, Compacted Areas: Where completed azeas are disturbed by subsequent construction operations or weather, scarify surface, and re-compact to required density prior to further construction. D. Settlins: Where settling is measurable or observable at excavated azeas during general project warranty period, remove surface (pavement, lawn or other finish), add backfill material, compact, and replace surface treatment. Restore appearance, quality, and condition of surface or fuush to match adjacent work, and eliminate evidence of restoration to greatest extent possible. 3.10 DISPOSAL OF EXCESS AND WASTE MATERIALS A. Removal from Owner's Properiv: Remove waste materials, including unacceptable excavated material, trash and debris, and dispose of it off Owner's property. 3.11 BASIS OF PAYMENT A. For the purpose of preparing a bid, the Contractor shall include the cost for all work described in this Section and as shown on the Drawings on a Lump Sum price basis in the Total Bid. END OF SECTION 02200 Section 02200 - 4 SECTION 02900 -LANDSCAPE WORK ~-. - -' 1.1 RELATED DOCUMENTS PART1-GENERAL A. Drawings and general provisions of Contract, including General and Supplementary Conditions and Division-1 Specification sections, apply to this section. 1.2 SUMMARY A. This Section includes provisions for the following items: Furnishing and placing of borrowed top soil, furnishing of additional top soil as required, soil amendments, seeding and initial maintenance where indicated on the Drawings or as specified herein. B. Related Sections: The following sections contain requirements that relate to this Section. 1. Section 02060 -Building Demolition. 2. Site Stripping and Clearing Excavation, filling, and rough aradina required to establish elevations shown on drawings is specified in Sections 02110 - "Site Clearing" and Section 02200 - "Earthwork." 1.3 QUALITY ASSURANCE A. Subcontract landscape work to a single fnrn specializing in landscape work. B. Source Quality Control: 1. General: Ship landscape materials with certificates of inspection required by governing authorities. Comply ~ with regulations applicable to landscape materials. ,_ 2. Do not make substitutions. If specified landscape material is not obtainable, submit non-availability to Architect, together with proposal for use of equivalent material. 3. Analysis and Standards: Package standard products with manufacturer's certified analysis. For other materials, provide. analysis by recognized laboratory made in accordance with methods established by the Association of Official Agriculture Chemists, wherever applicable. 4. Topsoil: Before delivery of topsoil, furnish Architect with written statement giving location of properties from which topsoil is to be obtained, names and addresses of owners, depth to be stripped, and crops grown during past 2 years. 5. Trees and Shrubs: Provide trees, shrubs and plants of quantity, size, genus, species and variety shown and scheduled for landscape work and complying with recommendations and requirements of ANSI 260.1 "American Standard for Nursery Stock". Provide healthy, vigorous stock, grown in recognized nursery in accordance with good horticultural practice and free of disease, insects, eggs, larvae and defects such as knots, sun-scald, injuries, abrasions, or disfigurement. 1.4 SUBMITTALS A. General: Submit the following in accordance with Conditions of Contract and Division-1 Sections. B. Plant and Material Certifications: 1. Certificates of inspection as required by governmental a uthorities. S ubmit o they d ata s ubstantiating t hat materials comply with specified requirements. Submit other data substantiating that materials comply with specified requirements. 2. Manufacturer's or vendor's certified analysis for soil amendments and fertilizer materials. 3. Label data substantiating that plants, trees, shrubs and planting materials comply with specified requirements. Section 02900 - 1 4. Seed vendor's certified statement for each grass seed mixture required, stating botanical and common name, percentage by weight, and percentages of purity, germination, and weed seed for each grass seed species. '1' C. Maintenance Instructions: Typewritten instructions recommending procedures to be established by Owner for _, maintenance of landscape work for one full year. Submit prior to expiration of required maintenance period(s). 1.5 DELIVERY, STORAGE AND HANDLING A. Packaged Materials: Deliver packaged materials in containers showing weight, analysis and name of manufacturer. Protect materials from deterioration during delivery, and while stored at site. 1.6 PROJECT CONDITIONS A. Utilities: Determine location of underground utilities and perform work in a manner which will avoid possible damage. Hand excavate, as required. Maintain grade stakes set by others until removal is mutually agreed upon by parties concerned. B. Excavation: W hen c onditions d etrimental t o p lant g rowth a re a ncountered, such as rubble fill, adverse drainage conditions, or obstructions, notify Architect before planting. 1.7 SEQUENCING AND SCHEDULING A. Planting Tune: Proceed with, and complete landscape work as rapidly as portions of site become available, working within seasonal limitations for each kind of landscape work required. B. Correlate plantin¢ with specified maintenance periods to provide maintenance from date of substantial completion. 1.8 SPECIAL PROJECT WARRANTY -^~ A. Warranty lawns through lawn specified maintenance period, and until final acceptance. B. Another warranty inspection will be conducted at end of extended warranty period, if any, to determine acceptance or rejection. Only one replacement (per tree, shrub or plant) will be required at end of warranty period, except for losses or replacements due to failure to comply with specified requirements. PART 2 -PRODUCTS 2.1 TOPSOIL A. Topsoil has been (or will be) stockpiled for re-use in landscape work. If quantity of stockpiled topsoil is insufficient, provide additional topsoil as required to complete landscape work. B. Provide new topsoil which meets MN/DOT Specification Section 2105. Provide topsoil which is fertile, friable, natural loam, surface soil, reasonably free of subsoil, clay lumps, brush, weeds and other litter, and free of roots, stumps, stones larger than 2" in any dimension, and other extraneous or toxic matter harmful to plant growth. Obtain topsoil from local sources or from areas having similar soil characteristics to that found at project site. Obtain topsoil only from naturally, well-drained sites where topsoil occurs in a depth of not less than 4"; do not obtain from bogs or marshes. 2.2 SOIL AMENDMENTS A. Commercial Fertilizer: Complete fertilizer of neutral character, with some elements derived from organic sources and containing following percentages of available plant nutrients: For lawns, provide fertilizer with percentage of nitrogen required to provide not less than 1 lb. of actual nitrogen per 100 sq. ft. of lawn area and not less than 4% phosphoric acid and 2% potassium. Provide Section 02900 - 2 nitrogen in a form that will be available to lawn during initial period of growth; at least 50% of nitrogen to be in organic form ~~. 2.3 GRASS MATERIALS A. Grass Seed: Provide fresh, clean, new-crop seed complying with tolerance for purity and germination established by Official Seed Analysts of North America. Provide seed mixture composed of grass species, proportions and minimum percentages of purity, germination, and maximum percentage of weed seed, as specified. 1. Provide seed mixture 500 in accordance with MN/DOT Specification Section 2575. B. Anti-Erosion Mulch: Provide clean, seed-free salt hay or threshed straw of wheat, rye, oats or barley. PART 3 -EXECUTION 3.1 PREPARATION FOR PLANTING LAWNS A. Loosen subgxade of lawn areas to a minimum depth of 4". Remove stones over 1-1/2" in any dimension and sticks, roots, rubbish and other extraneous matter. Limit preparation to areas which will be planted promptly after preparation. 1. Spread top soil to minimum depth required to meet lines, grades and elevations shown, after light rolling and natural settlement. Add specified soil amendments and mix thoroughly into upper 4" of topsoil. B. Preparation of Unchanged Grades: Where lawns are to be planted in areas that have not been altered or disturbed by excavating, grading, or stripping operations, prepare soil for lawn planting as follows: Till to a depth of not less than 6"; apply soil amendments and initial fertilizers as specified; remove high areas and fill in depressions; till soil to a homogenous mixture of fine texture, free of lumps, clods, stones, roots and other extraneous matter. ~-~ 1. Prior to preparation of unchanged areas, remove existing grass, vegetation and turf. Dispose of such _ material outside of Owner's property; do not turn over into soil being prepared for lawns. 2. Allow for sod thickness in areas to be sodded. 3. Apply specified commercial fertilizer at rates specified and thoroughly mix into upper 2" of topsoil. Delay application of fertilizer if lawn planting will not follow within a few days. 4. "Schedule of Planting Soil Mixture Requirements", indicating required rate of fertilizer application, is attached at end of this section. C. Fine ~xade lawn areas to smooth, even surface with loose, uniformly fine texture. Roll, rake and drag lawn areas, remove r idges a nd f ill d epressions, a s r equired t o m eet finish g rades. Limit fine grading to areas which can be planted immediately after grading. D. Moisten prepared lawn areas before planting if soil is dry. Water thoroughly and allow surface moisture to dry before planting lawns. Do not create a muddy soil condition. E. Restore lawn areas to specified condition if eroded or otherwise disturbed after fine grading and prior to planting. 3.2 HYDROSEEDING NEW LAWNS A. Mix specified seed, fertilizer and pulverized mulch in water, using equipment specifically designed for hydroseed application. Continue mixing until uniformly blended into homogenous slurry suitable for hydraulic application. B. Apply slurry uniformly to all areas to be seeded. Rate of application as required to obtain specified seed sowing rate. 3.3 MAINTENANCE A. Begin maintenance immediately after planting. ~. Section 02900 - 3 B. Maintain lawns for not less than the period stated below, and longer as required to establish an acceptable lawn. 1. Seeded lawns, not less than 60 days after substantial completion. a. If seeded in fall and not given fit1160 days of maintenance, or if not considered acceptable at that time, continue maintenance the following spring until acceptable lawn is established. C. Maintain lawns by watering, fertilizing, weeding, and other operations such as rolling, re-grading and replanting as required to establish a smooth, acceptable lawn, free of eroded or bare areas. 3.4 CLEANUP AND PROTECTION A. During landscape work, keep pavements clean and work area in an orderly condition. B. Protect landscape work and materials from damage due to landscape operations, operations by other contractors and trades and trespassers. Maintain protection during installation and maintenance periods. Treat, repair or replace damaged landscape work as directed. 3.5 INSPECTION AND ACCEPTANCE A. When landscape work is completed, including maintenance, the Construction Manager will, upon request, make an inspection to determine acceptability. B. Where inspected landscape work does not comely with requirements, replace rejected work and continue specified maintenance until reinspected by the Construction Manager and found to be acceptable. Remove rejected materials promptly from project site. END OF SECTION 02900 Section 02900 - 4 Property Purchases in Mitigative Area ~~ Occupancy Status W„ , ~,,, 83,5 83N 6316 ~, - 8316 8100 8101 g10p 8105 8108 8100. - 8108 6N6 0121 N17 ~. Z 8127 8433 6176 8121 6137 ~' ;^ YVV 8139 BN4 eaa MnDOT Maintenance Facility ~ esoa scot ~ eals e5z+ 6527 sstt as7o 6574 cszs eau cszs - ,>m , as33 can as37 ,~ q 1 ,700 1708 ,7 0 ~u ®Properties to be Demolished eeu 0 Properties Already Removed ~' ee3a ee/1 6708 871{ 6732 8727 8777 87n e73fl eus N W E S i / gib / cd / statt /juke /project /airport / 18[MVe_ac~status.apr ~~ RICHFIELD COMMUNITY DEVEL 10-2003 AGENDA SECTION: Consent AGENDA ITEM # 7.i REPORT # ~ ~ Q STAFF REPORT CITY COUNCIL MEETING OCTOBER 14, 2003 REPORT PREPARED BY: JIM TOPITZHOFER, RECREATION SERVICES DIRECTOR COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: ~' SIGNATC/RE REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Approval of the attached three-year lease between the City of Richfield and Hat Trick Hockey Inc., consisting of 1,900 square feet of space located in the Richfield Ice Arena, 636 East 66th Street. RECOMMENDED ACTION: By Motion: Approve the attached. three-year lease. between the City of Richfield and Hat Trick Hockey Inc., consisting of 1,900 square feet of space located in the Richfield Ice Arena, 636 East 66th Street. III. BACKGROUND On June 12, 1997, City-Council approved. asix-year lease with owner Mr. Tom Sachs of Hat Trick Hockey, Inc. Mr. Sachs has utilized a 1,900 square foot addition of the Richfield Ice Arena, to conduct retail sales of hockey equipment. The six- year lease expires December 1, 2003. City staff has negotiated the attached lease with Mr. Sachs. There are two ~ situations occurring at this time that are driving some changes in the new lease that were not apparent six years ago. First, the hockey program in Richfield is declining and has in-turn effected the profits for the Hat Trick Hockey. Secondly, alarge- scale competing retailer has just open a store in the REI building, located on 1014 Hat Trick Lease Lyndale Avenue and I-494. Because of the uncertain future and declining market, the following changes were made: 1) The term changes from six years to three years. 2) The lease payment was reduced from $2,640 per month to an average of $2,200 per month. 3) To assist Hat Trick Hockey with cash flow, the payment schedule has been altered to collect $2,900 during the months of peak sales and $1,500 per month during the non-peak season. 4) Mr. Sachs has requested no rent increases for the next three years. 5) Because Hat Trick Hockey has never produced sales in excess of $400,000 and the City has never collected the required additional rent in the past, additional rent was eliminated in the lease as stated in Article IV. 6) The payment of Hat Trick Hockey's prorated operating expenses that are repair related were eliminated from the lease as stated in Article V. There has been no such expenses incurred for the past six years. 7) Hat Trick Hockey still remains responsible for its prorated share of utilities. A monthly maintenance fee of $40 was eliminated in Article VI. 8) The City's obligation to reimburse Hat Trick Hockey for architectural fees in the event the lease is terminated, was eliminated in Article XIV. III. BASIS OF RECOMMENDATION A. POLICY • The current lease expires on December 1, 2003. B. CRITICAL ISSUES • Local hockey participation has been declining. - • Anew large-scale retailer of hockey equipment has just opened a store in the REI building. C. FINANCIAL • The new lease will collect $5,760- less than the scheduled payments in year six of the current lease. Market forces are hampering the ability of Hat Trick Hockey to continue to pay rent at the current rate. • The Ice Arena will receive rent revenue in the amount of $26,400 each of the next three years. It would be difficult to find a way to generate this amount of revenue from a different use of the leased space. rney reviewed the attached lease. IV. ALTERNATIVE RECOMMENDATION(S) ~ • None V. ATTACHMENTS ~ Lease Aareement between. the City of Ri VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None and Hat Trick Hockey, Inc. r'~ Kennedy & Graven, Chartered LEASE AGREEMENT This lease is made this -1~~°~ T 14th day of October, 2003, by and between THE CITY OF RICHFIELD ("Landlord") and HAT TRICK HOCKEY, INC. ("Tenant"). Landlord and Tenant, intending to be legally bound, hereby covenant and agree as follow: ARTICLE I. Leased Premises 1.1 Landlord does hereby lease, demise, and let unto Tenant, and Tenant does hereby hire and take from Landlord, upon the terms and conditions set forth herein (the Lease), the premises shown cross-hatched on Exhibit A attached hereto and incorporated herein, , ~T °°~°~ Dr°m~°°~ consisting of 1 900 square feet of space (Leased Premises), located on the level of the Richfield Ice Arena Building located at 636 East 66th Street situated in the City of Richfield, Hennepin County, Minnesota (the "Building"). T~ ARTICLE II. Term 2.1. ^~~ The term of the Lease shall commence on GEtab°~~Tn? December 1, 2003 (the Commencement Date); and the Lease shall terminate on ~°„*°~^'^°N 2n, 1~~ November 30, 2006. r~*' r D -- ~o~e-i ~~en~~teber-~9°~~ he 2.2. If, at the termination of this lease agreement for reasons other than default or breach by Tenant, Landlord decides to lease the Leased Premises to a third party, Tenant shall have the right, for a period of one year after the termination date, to match or exceed any proposed and/or actual lease for the Leased Premises which is acceptable to the Landlord, and if the Tenant elects in writing within 15 days of the date of receipt of the proposed and/or actual Lease, then the parties hereto shall execute such a lease. 0 ARTICLE III. Rent Tenant shall pay to Landlord as the "Base Rent" monthly rent in accordance with the following schedule: be-ase--V~~~thl3~-pa3~en~$~949 i/ ea-se--V e~tl~lx}end Lm~= V~~ tl~l~~ ::t: e~ ~szn ~~~ ~T ~n i/eit~C--~cur/-z-riviztl~l~-piryiTi '~*cri Qc-~z,~cv ;Jeuse-~~z~ntl3l~n=en+: Quo January February March October November December $2900 $2900 $2900- $2900 $2900 $2900 April May June July August September $1500 $1500 $1500 $1500 $1500 $1500 Said Base Rent shall be payable in advance, on or before the first (1st) day of each and every month, commencing on the Commencement Date, and continuing during the Term. ~n~e~se~-car-tki~g~o,,.,o~. vo~r 1 ~>1„ll t,o +l,o ~ ~ ,~, „+1, ~ ,,,a •+1, +l,o r„ „+ r~.,+o_ ~,,,~ „a; „ +l,v a., , t,o~ o +l,v o Y P b ~~~ „ate ~ ~ auc~tl~@~BA~ -aacE$Sr.~'~-iccc~pcr'~`', ° •' , T "~°cu"r~~cccs~rct'1~~~-tE-,~1-1 ARTICLE IV. Nonpayment 1 T + t, 11 1 4 rd as " n '' '';tie - - d~ ~~P +» + +1 ci u - , o +;,,., ~ o «u -a~~ e~ . ~ ~c~crr H' e ~ rc ~ ~ c nc cxxxr ~ D +~~ ' A,-+' 1 TTT ,-+;., .,1 mil-,., .,+'.. .,; F;o.a ;,, e s +1,;~ u "~:~1~ ~ ~.~~~u .,. p ~..~~ . T + L, 11 + +L, T .11„«.1 ., ~ A ~.1;+;.,,,~1 1?or+_~..ll ., ,,+ o .,1 +., ~~ 7 c0% .,~..r.,~~ `1 b ~..L, o.l„l o LET ~ Q~~c~nnn Lcccvc~ ~ Q~~c nnn 1/@-~co~~n Q~ cn~nnn L~~~ Q~z~c nnn ~-r~ , v v v Leese-~e~r-~- Q~an nnn ~~,,,~ ~~ rM > > 4~ Except as otherwise expressly provided herein, Tenant covenants and agrees that if at any time it fails to pay any amount required by the Lease, or to obtain, pay for, maintain, or deliver any of the insurance policies herein provided for, or fails to make any other payment or perform any other act required to be made or performed by the Lease, then Landlord, without notice to or demand upon Tenant, without waiving or releasing Tenant from any obligation of Tenant contained in the Lease, and without any obligation to do so, may effect any such insurance coverage and pay premiums therefor and may make any other payment or perform any other act on the part of Tenant to be made and performed as provided in the Lease, in such manner and to such extent as Landlord may deem reasonably desirable, and in exercising such right to pay necessary and incidental costs and expenses. All sums so paid by Landlord and all necessary and any such act by Landlord, together with interest thereon at the maximum rate permitted by law, whichever is less, from the date of making of such expenditure by Landlord, shall be payable to Landlord as Additional Rent, and except as otherwise provided for in the Lease, shall be payable on demand or at the option of Landlord may be added to any monthly rental then due or thereafter becoming due under the Lease. Tenant covenants to pay any such sum or sums with interest as aforesaid and Landlord shall have (in addition to any right or remedy of Landlord) the same rights and remedies in the event of nonpayment by Tenant as in the case of default by Tenant in payment of rent. ARTICLE V. Taxes 5.1 Tenant shall pay all real estate taxes and installments of special assessments which shall during the term be laid; assessed, levied or imposed upon or shall become payable and a lien upon, the Leased Premises or any part thereof (the Taxes). Such taxes. and special assessments shall be prorated in the first and last years of the Lease based upon the period of occupancy. Tenant shall make such real estate tax payments directly to the appropriate governmental authorities which have lawfully levied and are authorized to collect such tax. 7 T + 1 , 11 1 A ,1.1 ;+; ., nl D°,,+ 1 ,°«°,,.,. 1° ;+~ « '~' «n+n ~ b,n«° „~ ~ ' ~ < ' ~ ~1 ,. V 1 Ulu J r llu 00 ~, , 1 ~ +L , v ! T y n n ,1 D \1 ~, r 11 1, + ' 1 ' r 1,+' 1 r L,' .1 r ~ n b ~ ' 1 r ~ ~ + +1- T .1 D / «+' .1 nl , « .,n.~,+ +nl-.1° ~ °« .<.~7 ' +-+.7 n+ ., ,-,+° °~. + «n+° tl V + +l- D '1.1' 1, T A l .1 f'+°«+L,° .ln+° ~f +l,;c, T +b, + .d , ra° ~. .--_ ~__ ~---a - J ~~ M T - rl + +1, «n 7 ~6 1 ~ ~ „ Y' O 1 < 1CL4 V C 2 TL, 1 + ~+L,° ~ J ~°+_~ «+L, +1,; 11 L111 ~ A« J +;.,1° ~7 ~7, n11 L, ° ; .,,1,1;+;, .,-, +., -- -- b r " ' r r J ° b N 11 LVKU \ / Y '+' - .7 ' 11 L. .1 1' .1 ; 1 °.1 +., T° „+ ~+ +L, T .1 D T L, + f' a zu .,~u 1 > > > > > L. 11 L. L,1 A .1.1'+' nl D°.,+ ; nl ,~,`.,,+L,1< 'i +nll o > ,ti,°,-,+~ , n.l< > ,, +1 ~ ° > ,° ~«~+ pp l~1 Tr ~ ,~ ~J „ +~ ~ ~} +~ l ~ ~~ n« ' ~ull ' lu~ ~ ~ 'e e ~ _ R"CC~ GCC CYYYYYe T ~1 n 1 G <,+° ,-, +L, ~ T V R21 .] 1 T 7I~i CI 1T A 1, n 11 VCLVI d °+o I LI JCIJ ° +1, ° .,+„ n 1 -- + ~+L, ~ ~rbe~s ~ ~ V on« n,,.l T o,-,n., +~~ ~l,n«° +t1 °«°„~ P ~p~.s~. ~ e-}}3- s~.}e ~ .1 'll '+ L, F n+;,-..< 1~~ ° ~ f ° .,1, T .,~° V° T ~ ~ ° ~. + nL,nll ,. <. +L,° " 1 r 1 u.,~ 1 ~ Y r T + 1, '.1 '+ L, ,.Fn,.,°«n+;,,.< T 7~,.°r~o ~ « r .,1, T ° ° V °.,« T n,-..al..«.7 ~b,nll N r a r i ~ ~ 1~ ~ e~ ~ 2~~ „« n ,,. «n+ n na;, ,~+,~,°„+ ~t,~ll >,° e-~~ A, 6 ~ eP ~s 6 ti, aroa ~ ~+« r~., . _.,..,__~ --- ----- - ------ ., - - ARTICLE VI. Utilities and Maintenance Expense 6.1. Tenant shall pay its pro rata share of all charges for electricity, light, air conditioning and power with the Leased premises. The charges thereof shall be deemed Additional Rent and payable in accordance with Article V hereof. To the extent that utilities are separately metered or separately charged to Tenant's Premises, they shall not be subject to prorated allocation, but shall remain the obligation of Tenant. ti-z~zTirrcu~crvrriv-iis Du~~ D +, ratCttt~Y~YY'cG~i+ T' ,7 TT+'1;+;0~+1, ~ ~ --- - ~ecc~~cz`~ ~ Q7c ~~ec'~ ~ Q7 c L~~ Q'1 c ~~ ~ Q2l1 w -~ ~+ i/~~ Q 2 G ~~ ~ Q~n w f ARTICLE VII. Repairs, Maintenance and Alterations 7.1. Tenant shall, during the Term and at Tenant's expense, keep the Leased Premises and appurtenances and every part thereof in good order, condition, and repair, including, without limitation, the maintenance, repair, and replacement, if necessary, of all interior walls, partitions, doors, and windows, including the regular painting thereof, ~ a ~„o,a ;~ co„+;,,~ c ~ t,~,.v..~ Tenant. shall promptly notify Landlord of any necessary maintenance, repairs, or replacements. When used in this provision, the term repairs' shall include replacements or renewals when necessary, and all such repairs made by the Tenant shall be equal in quality and class to the original work. If Tenant does not keep and maintain the Leased Premises as herein provided, Landlord may, but need not, make such repairs and replacements, and Tenant shall pay Landlord, as Additional Rent, the cost thereof forthwith, plus interest at the rate of 10% per annum from the date of making such expenditure by Landlord, upon being billed for the same. All damage or injury to the Leased Premises and to its fixtures, appurtenances, and equipment caused by Tenant moving property in or out of the Leased Premises or by installation, removal of r--._ furniture, fixtures, equipment, or other property by Tenant, its agents, contractors, _ servants, or employees, or resulting from any other cause of any other kind or nature whatsoever due to carelessness, omission, neglect, improper conduct, or other causes of Tenant, its servants, employees, agents, visitors, or licensees, shall be repaired, restored, or replaced promptly by Tenant at its sole cost and expense to the satisfaction of Landlord. If Tenant fails to make such repairs, restorations, or replacements, the same maybe made by Landlord and the same shall be at the expense of Tenant and collectible as Additional Rent or otherwise, and shall be paid by Tenant to Landlord within five (5) days after rendition of a bill or statement therefor. 7.2) Except as otherwise provided herein, no improvements, alterations, or replacements shall be made to the Leased Premises or any portion thereof without the prior written consent of Landlord. 7.3) Notwithstanding any other provision contained herein to the contrary, Landlord shall repair, at its expense, the structural portions of the Building; provided, however, where structural repairs are required to be made by reason of the acts of Tenant, the costs thereof shall be borne by Tenant and payable by Tenant to Landlord upon demand. 7.4) Landlord covenants to Tenant that it will continue to reasonably provide for the removal of snow from the parking lot and sidewalks and for the maintenance and repair work on the building exterior all for the benefit of users of the building, including Tenant. ARTICLE VIII. Insurance 8.1. Landlord shall at all times during the Term keep the Building insured against loss or damage by fire and against those perils included from time to time in the standard form of extended coverage insurance endorsement, including but without limiting the generality of the foregoing, wind storm, hail, explosion, vandalism, riot and civil commotion, damage from vehicles, and smoke damage, and such other coverage as may be deemed necessary by Landlord. 8.2. Tenant shall insure the contents of the Leased Premises owned by Tenant, for the benefit of Tenant, against lose or damage by fire, windstorm, or other casualty for such amount as Tenant may desire. 8.3. Mutual Waiver of Subrogation. Landlord and Lessee hereby waive any and all rights of recovery against each other for any loss or damage to the Leased Premises and/or the Building or the contents contained therein on account of fire or other casualty or for injuries sustained on the Leased Premises and/or the Building, provided such loss or damage is insured under a policy carried by Lessor or Lessee at the time of such loss or damage. The aforesaid policies of insurance shall contain appropriate provisions recognizing this mutual release and waiving all rights of subrogation on behalf of the respective insurance carriers. _ 8.4. Tenant shall also, as Additional Rent hereunder and at Tenant's sole cost and expense, but for the mutual benefit of Landlord and Tenant, as named insureds, maintain during the Term (a) general public liability insurance against claims for personal injury, death, or property damage occurring upon, in, or about the Leased Premises, and on, in, or about the adjoining lands, such insurance to afford protection to the limit of not less than Five Hundred Thousand and no/100 Dollars ($500,000.00) in respect to injury or death to a single person, and to the limit of not less than one Million and no/100 Dollars ($1,000,000.00) in respect to any one (1) accident and to the limit of not less than Three Hundred Thousand and no/100 Dollars ($300,000.00) in respect to any property damage; and (b) steam boiler insurance on all steam boilers, pressure boilers, or other such apparatus as Landlord may deem necessary to be covered by such insurance and in such amount or amounts as Landlord may from time to time reasonably require. 8.5. All policies of insurance required to be maintained by Tenant shall be written in companies satisfactory to Landlord, and shall be written in such form and shall be distributed in such companies as shall be reasonably acceptable to Landlord. Such policies shall be delivered to Landlord endorsed "premium paid" by the company or agency issuing the same or accompanied by another evidence satisfactory to Landlord that the premiums thereon have been paid, not less than (10) days prior to the expiration of any then current policy. ARTICLE IX. '~ Quiet Enjoyment 9.1 Landlord represents and warrants that it is the lawful owner of the Leased Premises; that it has the full right and power to make the Lease; that if and so long as Tenant shall not be in default hereunder, Tenant shall quietly hold, occupy, and enjoy the Leased Premises during all of the Term. ARTICLE X. Destruction By Fire 10.1. If the Building or any portion thereof is damaged or destroyed by fire or other casualty, however or by whomever caused, Landlord shall repair, rebuild, and restore the same with due diligence and dispatch (subject to the approval of the holders of any mortgages on the Building) so that the Building will be restored to at least the same good order and condition as existed prior to damage or destruction. If more than twenty five percent (25%) of the Leased Premises is damaged or destroyed by fire or other casualty, Landlord shall have the option, in its sole discretion, to decline to rebuild. If Landlord so declines, this Lease shall terminate as of the of the date of such damage or destruction. If Landlord elects to repair the Building, and if such damage in the reasonable opinion of the Landlord renders the entire Leased Premises unfit for Tenant's normal business purposes, and Tenant by reason thereof discontinues business in the Leased Premises, Base Rent and Additional Rent shall be abated for a period during which no part of the Leased Premises is fit for such business purposes and during which time Tenant discontinues business. If such damage renders only part of the Leased Premises unfit for Tenant's normal business purposes, Base Rent shall be apportioned on --~ a square foot of Leased Premises area basis and the proportion thereof applicable to each _- part of the Leased Premises upon which Tenant discontinues its business operations shall be abated for the period during which such part is not fit for Tenant's normal business purposes and during which Tenant discontinues such business operations. 10.2. Tenant will repair and replace all improvements and betterments placed upon the Leased Premises by it, and such repair and replacement shall be made at its own expense and not at the expense of Landlord. ARTICLE XI. Assignment and Subletting 11.1 Tenant shall not assign or sublease any of its rights under the Lease of any part of the Leased Premises without prior written consent from Landlord, which consent shall not be unreasonably withheld by Landlord. No such assignment or subleasing shall in any event relieve Tenant from any of its obligations contained in the Lease, nor shall any assignment or transfer of the Lease be effective unless the assignee or transferee shall, at the time of such assignment or transfer, assume in writing all the terms, covenants, and conditions of the Lease to be performed thereafter by Tenant and shall agree in writing to be bound thereby. Tenant agrees to pay on behalf of Landlord any and all costs of Landlord, including reasonable attorneys' fees occasioned by such assignment or transfer. ARTICLE XII. r`' Defaults of Tenant - 12.1. If during the Term Tenant shall default in fulfilling any of the covenants of the Lease (other than the covenants for the payment of Base Rent or Additional Rent), Landlord shall give Tenant notice of any default or of the happening of any contingency referred to in this paragraph, and if at the expiration of twenty (20) days after the service of such notice the default or contingency upon which said notice was based. shall continue to exist, or in the case of a default or contingency which cannot with due diligence be cured within a period of twenty (20) days, if Tenant fails to proceed promptly after the service of such notice and with all due diligence to cure the same and thereafter to prosecute the curing of such default with all due diligence, Landlord, at its option, may terminate the Lease, and upon such termination, Tenant will quit and surrender the Leased Premises to Landlord, but Tenant shall remain liable as hereinafter provided. 12.2. If Tenant shall default in the payment of the Base Rent. or Additional Rent expressly reserved hereunder, or any part of the same, and such default shall continue for ten (10) days after notice thereof by Landlord, or if the Lease shall expire as provided in Paragraph 12.1 of this Article, Landlord or Landlord's agents and servants may immediately or at any time thereafter re-enter the Leased Premises and remove all persons and any or all property therefrom, either by summary dispossession proceedings or by any suitable action or proceedings at law or by force or otherwise and repossess and enjoy said Leased Premises, together with all additions, alterations and improvements, without reentry and repossession working forfeiture or waiver of the rents to be paid and the covenants to be performed by Tenant during the Term hereof. Upon the expiration of the Term of the Lease by reason of any of the events described in Paragraph 12.1, or in ~-~ the event of termination of the Lease by summary dispossession proceedings or under __, any provision of law now or hereafter in force by reason of or based upon or arising out of a default under or a breach of the Lease on the part of Tenant (except where such breach or default is determined by a court of competent jurisdiction to be justified because of Landlord's acts or omissions), or upon Landlord recovering possession of the Leased Premises in the manner or in any of the circumstances whatsoever, whether with or without legal proceedings, by reason of or based upon or arising out of a default under or a breach of the Lease on the part of Tenant, Landlord may, at its option, at any time and from time to time, relet the Leased Premises, or any part thereof, for the account of Tenant or otherwise, and receive and collect the rents therefor, applying the same first to the payment of such expenses as Landlord may have incurred in recovering possession of the Leased Premises, including legal expenses and attorneys, fees, and for putting the same into good order or condition or preparing or altering the same for re-rental and all other expenses, commissions, and charges paid, assumed, or incurred by Landlord in reletting the Leased Premises and then to the fulfillment of the covenants of Tenant hereunder. Any such reletting herein provided for may be for the remainder of the Term of the Lease as originally granted or for a longer or shorter period. In any such case or whether or not the Leased Premises, or any part thereof, is relet, Tenant shall pay to Landlord the Base Rent and the Additional Rent required to be paid by Tenant up to the time of such termination of the Lease, as the case may be, and thereafter, Tenant covenants and agrees, if required by Landlord, to pay to Landlord until the end of the Term of the Lease the equivalent of the amount of all the Base Rent and Additional Rent reserved herein less the net proceeds of reletting, if any. Landlord shall have the election, ~ in place and stead of holding Tenant so liable, forthwith to recover against Tenant, as ~- damages for loss of the bargain and not as penalty, an aggregate sum which at the time of such termination of the Lease for such recovery of possession of the Leased Premises by Landlord, as the case may be, represents the then present worth of the excess, if any, of the aggregate of the Base Rent and Additional Rent payable by Tenant hereunder that would have accrued for the balance of the Term, over the aggregate rental value of the Leased Premises for the balance of such Term. 12.3. The specified remedies to which Landlord may resort under the terms of the Lease are cumulative and are not intended to be exclusive of any other remedies or means of redress to-which Landlord may be lawfully entitled in case of any breach or threatened breach by Tenant of any provision of the Lease. The failure of Landlord to insist in any one or more cases upon the strict performance of any of the covenants of the Lease or to exercise any option herein contained shall not be construed as a waiver or a relinquishment for the future of such covenant or option. A receipt by Landlord of Base Rent or Additional Rent, with knowledge of breach of any covenant hereof (other than the payment of Base Rent or Additional Rent) shall not be deemed a waiver of such breach, and no waiver by Landlord of any provision of this Lease shall be deemed to have been made unless expressed in writing and signed by Landlord. In addition to other remedies provided in this Lease, Landlord shall be entitled to the restraint by injunction for the violation or attempted or threatened violation of the covenants, conditions, or provisions of the Lease. ARTICLE XIII. _ Attorneys' Fees 13.1 If it is necessary for Landlord to retain the services of an attorney at law to enforce any of the terms, covenants, or provisions hereof, or to collect any sums due hereunder, Tenant shall pay to Landlord upon demand, as Additional Rent hereunder, the reasonable cost of such services. ARTICLE XIV. l '+ + 1 f ,a + .1 + + ,.F 1 1 7/20/ _ `~ > > Removal of Improvements and Fixtures 14.1 Any improvements or fixtures installed by Tenant in the Leased Premises '_` or in the Building, whether used solely in Tenant's business or whether usable in the ~- Leased Premises without regard to such business or otherwise, shall become the property of Landlord upon the termination of the Lease. ARTICLE XV. Condition of Leased Premises at Termination 15..1 At the termination of the Lease by lapse of time or otherwise, Tenant shall return the Leased Premises in as good a condition as when Tenant took possession, excepting only ordinary wear and tear ;damage, or destruction as described in Articles 10 ^„~'~" herein. ARTICLE XVI. Holding Over 16.1 In the absence of any written agreement to the contrary, if Tenant should continue to occupy the Leased Premises following the expiration of the Term of the Lease, Tenant shall so remain as a tenant from month to month and all provisions of the Lease applicable to such tenancy shall remain in full force and effect. During such tenancy, the same Base Rent and the same terms and conditions as prevailed during the last month of the Term demised shall prevail. In any such event, Tenant shall be liable to Landlord for damages which Landlord may incur as a result of such holding over, including but not limited to damages incurred because of loss of a prospective successor tenant. If Tenant is a holdover tenant and if Tenant continues to 'occupy the Leased Premises following the termination of such holdover (by a proper notice as to such month month tenancy), then the foregoing provisions of this Article shall apply in the same manner as when Tenant continued in occupancy following the expiration of the Term of the Lease. ARTICLE XVII. Use of Leased Premises 17.1 The Leased Premises shall be used only for the sale and/or rental of hockey and skating equipment and apparel, skate sharpening and related services and such other activities as the Landlord may authorize from time to time. Tenant shall not use or occupy the Leased Premises or knowingly permit the Leased Premises to used or occupied contrary to any statute, rule, order, ordinance, requirement, or regulation applicable thereto or in any manner which would violate any certificate of occupancy affecting the same, or which would cause structural injury to the Leased Premises or cause the value or usefulness of the Leased Premises or any part thereof to substantially diminish (reasonable wear and tear excepted) or which would constitute a public or private nuisance or waste. Tenant shall promptly upon discovery of any such use, take all necessary steps to compel the discontinuance of such use. Landlord shall not, during the term of this Lease, permit or allow anyone other than Tenant to use the Building as a location to sharpen skates, use a skate sharpening machine, sell hockey equipment or supplies including, but not limited to tape and laces, during the business hours of Tenant. This limitation shall not prohibit the occasioned sale of hockey related merchandise by local hockey associations during organized events. ARTICLE XVIII. ~~ Permits 18.1 Tenant shall maintain in force and effect all permits, licenses, and similar authorizations to use the Leased Premises for the aforesaid purposes required by any governmental authority having jurisdiction over the use thereof. Tenant's failure to maintain such permits, licenses, and similar authorizations shall not relieve Tenant from the performance of its obligations and covenants hereunder (except obligations and covenants as may be prohibited by law), nor from the obligations to pay Base Rent or Additional Rent, as set forth herein. Tenant shall, at Landlord's request, in its capacity as Tenant, and not in its capacity as owner of the land underlying the Building, join with Landlord in executing, acknowledging, and delivering any and all petitions, consents, subordinations, plats, or easement deeds that may be required for the installation of any utilities, public improvements, roads, water lines, sewer lines, storm drainage facilities, subdivision, rezoning, special use, platting, or other similar development of the Leased Premises, which do not affect Tenant's use of the Leased Premises during the Term of the Lease. ARTICLE XIX. Compliance with Law 19.1 Tenant, at its sole expense, shall promptly comply with all laws, ordinances, and requirements of federal, state, county, and municipal authorities relating to Tenant's use and occupation of the Leased Premises, and with any lawful order or direction of any public officer relating to Tenant's use and occupation of the Leased Premises during the Term of the Lease. Nothing herein contained, however, shall prohibit Tenant from appealing from or contesting the validity or legality of such laws, _ ordinances, requirements, orders, or directions and, notwithstanding the foregoing provisions of this Article, Tenant shall not be deemed to be in default hereunder so long as Tenant diligently prosecutes such appeal or contest. ARTICLE XX. Lessor's Access to Premises 20.1 Tenant shall permit Landlord and the authorized representatives of Landlord to enter the Leased Premises at all times during usual business hours for the purpose of inspecting the same and making any necessary repairs to comply with any laws, ordinances rules, regulations, or requirements of any public authority or of the Board of Fire Underwriters or any similar board. Nothing herein shall imply any duty upon the part of Landlord to do any such work which, under any provision of the Lease, Tenant may be required to perform, and the performance thereof by Landlord shall not constitute a waiver of Tenant's default in failing to perform the same. Landlord may, during the progress of any work in the Leased Premises, reasonably keep and store upon the Leased Premises all necessary materials, tools, and equipment. Landlord shall not in any event be liable for inconvenience, annoyance, disturbance, loss of business, or other damage to Tenant by reason of making repairs or the performance of any work in the Leased Premises, or on account of bringing materials, supplies, and equipment onto or through the Leased Premises during the course thereof, and the obligations of Tenant under the Lease shall not hereby be affected in any manner whatsoever. Landlord shall, however, in connection with the doing of any such work cause as little inconvenience, annoyance, disturbance, loss of business, or other damage to Tenant as may reasonably be possible in the circumstances. ARTICLE XXI. Indemnity 21..1 Tenant shall indemnify and save harmless Landlord against and from any and all claims by or on behalf of any person or persons, firm or firms, corporation or corporations, arising from the conduct or management of or from any work or thing whatsoever done by Tenant, or any of its agents, contractors, employees, or licensees in, on or about the Leased Premises, and will further indemnify -and save Landlord harmless against and from any and all claims arising during the Term of the Lease from any condition of the Leased Premises arising from any breach or default on the part of Tenant in the performance of any covenant or agreement on the part of Tenant to be performed, pursuant to the terms of the Lease, or arising from any act of negligence of Tenant, or any of its agents, contractors, employees, or licensees, or arising from any accident, injury, or damage whatsoever caused to any person, firm, or corporation occurring during the Term of the Lease, in the Leased Premises, and from and against all costs, reasonable attorneys, fees, expenses, and liabilities incurred in or about any such claim or action or proceeding brought thereon; and in case any action or proceeding is brought against Landlord by reason of any such claim, Tenant, upon notice from Landlord, shall resist or defend such action or proceeding by counsel reasonably satisfactory to Landlord. However, nothing in this Lease shall require the Tenant to indemnify and save harmless Landlord from any claim caused by or occasioned by actions of the Landlord, its agents, contractors, employees or licensees. ARTICLE XXII. Estoppel Certificate 22.1 Tenant shall, at any time and from time to time, upon not less than twenty (20) days' prior notice by Landlord, execute, acknowledge, and deliver to Landlord a statement in writing certifying that the Lease is unmodified and in full force and effect (or if there shall have been modifications that the Lease is in full force and effect as modified and stating the modifications) and the dates to which the Base Rent and Additional Rent have been paid in advance, if any, and stating whether or not (to the best knowledge of Tenant) Landlord is in default in the performance of any covenant, agreement, or condition contained in the Lease and, if so, specifying each such default of which Tenant may have knowledge, it being intended that any such statement delivered pursuant to this Article shall be in a form approved by and may be relied upon by any prospective assignee of Landlord's interest in the Lease or any mortgagee of the Leased Premises or any assignee of any mortgage upon the Leased Premises. ARTICLE XXIII. Subordination 23.1 The Lease shall, at landlord's election, be subject and subordinate to the terms and conditions of all mortgages which may now or hereafter encumber the Leased Premises and to all renewals, modifications, consolidations, replacements, and extensions of such mortgages. In confirmation of such subordination, Tenant shall promptly execute any certificate of subordination or other such documents which Landlord or its mortgagees may request, , D ~- - •~ l cnrvrscrcnzxrvr~c~n~°csp'rsrsiisrir~to-z cis. ARTICLE XXIV. Signs 24.1 Upon prior written approval by Landlord of design and construction, which approval shall not be unreasonably withheld, Tenant may erect such signs upon the Leased Premises as it may deem desirable, as long as said signs do not exceed in weight the safe carrying capacity of any bearing structure, or violate the laws of the state 'or ordinances of the municipality in which the Leased Premises is situated. ARTICLE XXV. Entire agreement 25.1 The Lease contains the entire agreement between the parties, and there are no other terms, obligations, covenants, representations, statements, or conditions, oral or otherwise, of any kind whatsoever. Any agreement hereafter made shall be ineffective to change, modify, discharge,. or effect an abandonment of the Lease in whole or in part unless such agreement is in writing and signed by the party against whom enforcement of the change, modification, discharge, or abandonment in sought. ~, ARTICLE XXVI. Release of Lessor 26.1 If Landlord sells or otherwise transfers all of its interest in the Leased Premises, Landlord shall, without further action by any party, be released and discharged from any further obligation or duty under the Lease, and no claim or demand upon Landlord shall thereafter be made by Tenant arising out of any such prospective obligation or duty of Landlord hereunder. Upon request by Landlord, Tenant shall execute an attornment agreement with Landlord's transferee in form satisfactory to such transferee. ARTICLE XXVII. Severability 27.1 If any term, condition, or provision of the Lease or the application thereof to any person or circumstance shall, to any extent, be held to be invalid or unenforceable, the remainder thereof and the application of such terms, provisions, and conditions to persons or circumstances other than those as to whom it shall be held invalid or unenforceable shall not be affected thereby, and the Lease and all the terms, provisions, and conditions hereof shall, in all other respects, continue to be effective and to be complied with to the full extent permitted by law. ARTICLE XXVIII. Short Form Lease 28.1 At the request of either .party hereto, a short form lease shall be prepared '~ in form and substance reasonably satisfactory to each of the parties and shall be executed ~- by each of the parties in duplicate, such lease to be filed for record in Hennepin County, Minnesota. ARTICLE XXIX. Notices 29.1 Any notice or election herein requested or permitted to be given or served by either party hereto upon the other, shall be deemed given or served in accordance with the provisions of the Lease if delivered to either party hereto and receipt is obtained therefor, or if mailed in a sealed wrapper by United states registered or certified mail, postage prepaid, properly addressed to such other party at the address hereinafter specified. Unless and until changed by notice as herein provided, notices and communications shall be addressed as follows: If to Landlord: City of Richfield 6700 Portland Avenue, Richfield, MN 55423 If to Tenant: Hat Trick Hockey 640 East 66th Street, Richfield, MN 55423 Each such mailed notice or communication shall be deemed to have been given to, or .-~ served upon the party to which addressed, on the date the same is deposited in the United ' _ states registered or certified mail, postage prepaid, properly addressed in the manner above provided. Each such delivered notice or communication shall be deemed to have been given to, or served upon, the party to whom delivered, upon delivery thereof in the manner above provided. Either party may change the address to which mailed notice is to be sent to it by giving to the other party hereto not less than thirty (30) days, advance written notice thereof. All payments of Base Rent or Additional Rent hereunder shall be made to Landlord at the address above designated, or as may be hereafter designated. ARTICLE XXX. Headings 30.1 The headings incorporated in the Lease are for convenience in reference only and are not a part of the Lease and do not in any way limit or add to the terms and provisions hereof. ARTICLE XXXI. Binding Effect 31.1 All of the covenants, conditions, and agreements herein contained shall extend to, be binding upon and inure to the benefit of the parties hereto and their respective heirs, successors, and assigns. IN WITNESS WHEREOF, the parties have executed this Lease the day and year first above written. LESSOR: CITY OF RICHFIELD, a Minnesota municipal corporation By: Its Mayor, Martin Kirsch And By: Its City Manager, Samantha Orduno LESSEE: HAT TRICK HOCKEY, INC., a Minnesota corporation By: Its Owner, Tom Sachs This instrument was drafted by: Kennedy & Graven, Chartered (JBD) 470 Pillsbury Center 200 South Sixth Street Minneapolis, MN 55402 612/337-9219 AGENDA SECTION: Consent AGENDA ITEM # 71 REPORT # 227 J STAFF REPORT CITY COUNCIL MEETING OCTOBER 14, 2003 REPORT PREPARED BY: JIM TOPITZHOFER, RECREATION SERVICES DIRECTOR N~uE, TITLE COUNCIL PRESENTER: NAME, TrrI,E DEPARTMENT DIRECTOR REVIEW: ~ ~ c SIG TUBE REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of resolution expressing support for the Richfield/Edina Trail Corridor Master Plan. I. RECOMMENDED ACTION: By Motion: Approve the attached resolution expressing support for the Richfield/Edina Trail Corridor Master Plan. III. BACKGROUND ~ In 2000, Hennepin Parks initiated a study of possible pedestrian trail corridors throughout-the first-tier suburbs and beyond. The plan identified a potential regional trail corridor through Richfield on 76th Street. The proposed Richfield/Edina Trail Corridor would originate at the Minnesota National Wildlife Refuge and extend west to Lake Minnetonka. Representatives from Hennepin Parks and SRF Consulting presented the plan to the Community Services Commission on March 21, 2000. Approximately 20 bike and pedestrian enthusiasts attended that meeting.. The Community Services Commission voted unanimously to recommend approval of a resolution of support of the plan on April 18, 2000. City Council approved a resolution supporting the plan on April 24, 2000. 1014 Three Rivers Trail Resolution Since then Hennepin Parks has changed its name to Three Rivers Park District. ~ City Council approved an agreement with Hennepin County for improvements along `~' 76th Street, creating the first segment of the Richfield/Edina Trail Corridor. Improvements are now underway including milling and striping, converting the four- lane stretch into atwo-lane road with two on-street bike lanes from Lyndale Avenue to Emerson Avenue. The Community Services Commission conducted an open house to review public comments from the adjacent neighborhood on June 17, 2003. No opposing views of the proposed improvements or regional trail alignment were received and the CSC voted unanimously to recommend approval of the project and to establish aone-year trail period. With this first segment underway, Three Rivers Park District is now requesting another resolution from Edina and Richfield so that they present the plan to Metropolitan Council. A complete description of this Richfield/Edina Corridor is attached. The proposed route through Richfield begins at Adams Hill Park, near the location of the new YMCA/Tri-City Skate Park. The trail progresses south on Upton Avenue to 75th Street and east through school property, to the controlled intersection at 75th Street and Penn Avenue. The trail passes Richfield Middle .School property and turns south on Logan Avenue to 76th Street.. The trail is accommodated by a new bridge design over Interstate I-35W and continues eastward on 76th Street to Cedar Avenue. The trail is accommodated by a new underpass at Cedar Avenue connecting to the airport frontage road to 34th Avenue and the Minnesota Valley National Wildlife Refuge. The trail is also identified in the Richfield Comprehensive Plan (see attached) An alternative trail alignment into Edina is shown to keep the regional trail entirely on 76th Street, .connecting to Edina on York Avenue. This alignment represents a more arterial route and would perhaps appeal to the more serious bicycle commuter who uses the trail as a mode of transportation. Whereas, the alignment through Adams Hill Park from Upton Avenue represents a less traveled route that is more residential. than arterial, and may appeal more to the recreational rider. It is not necessary to choose one alignment over the other at this time; however, a thorough examination will take place in the future in advance of further improvements into Edina. It is also possible to mark the alternative route as a local bike trail Another alignment choice appears on the east side of Richfield connecting 76th Street to Bloomington via 12th Avenue, or a future Hwy 77 underpass through Airport frontage road to 34th Avenue. Again, the alignment choice can be made prior to final approval of future trail segments. III. BASIS OF RECOMMENDATION A. POLICY • The Community Services Commission voted unanimously on September 16, 2003 to recommend approval of this resolution of support of the master plan for the Richfield/Edina Trail Corridor. • If this resolution is approved, the City of Richfield will contact Three Rivers Park District to express support of the Richfield/Edina Trail Corridor. • The desire to continue to develop trail connections was identified by the City Council in their 2002 goal-setting session. B. CRITICAL ISSUES • Adoption of this resolution does not authorize Three Rivers Park ~" District to begin construction. Instead, it allows the trail plan to proceed to the Three Rivers Park District Board to begin to identify and plan additional trail segments. • A number of alternatives exist to align the trail to Edina from the west and Bloomington from the east. Although alignment decisions are not needed at this stage, it is recommended that alignment choices be evaluated before any future trail segments are approved. C. FINANCIAL • If future trail segments are approved in the future, Three Rivers Park District will be managing and serving as operating authority of the trail. Three Rivers Park District will fund construction, operations, and maintenance. City or other agency assistance in funding construction may accelerate project implementation, but is not a requirement of the Park District. D. LEGAL • N/A TERNATIVE KECOMMENDATION(S) ~ Do not approve the resolution expressing support of the Richfield/Edina Trail Corridor. ~ I V. ATTACHMENTS • Resolution -~ • Narrative from Three Rivers Park District Summary • Trail Corridor Exhibit VI. PRINCIPAL PARTIES EXPECTED AT MEETING Besse 5vmvnKVwicz. uaemon raraer c RESOLUTION NO. RESOLUTION AUTHORIZING EXPRESSING SUPPORT FOR THE THREE RIVERS PARK DISTRICT RICHFIELD/EDINA MASTER PLAN WHEREAS, Three Rivers Park District has studied the potential for trails, greenways and parks in the First Tier Communities of Suburban Hennepin County; and WHEREAS, Three Rivers Park District has prepared a master plan of the Richfield/Edina Trail Corridor; and WHEREAS, the Three Rivers Park District has authorized its consultant, Daemon Farber & Associates to provide planning services; and WHEREAS, the Three Rivers Park District will work with First Tier Communities to review and comment on said plan; and WHEREAS, the Three Rivers Park District desires that Communities initiate and support the implementation of said plan; and WHEREAS, the Three Rivers Park District will require in a cooperative agreement with each city where the Richfield/Edina Trail Corridor would be implemented; and WHEREAS, the implementation of this Richfield/Edina Trail Corridor will be an ~~ ongoing process. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Richfield supports the efforts of the Three Rivers Park District to implement the Richfield/Edina Trail Corridor. Adopted by the City Council of the City of Richfield, Minnesota this 14th day of October 2003. Martin. J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk Chapter 3: Preferred Scheme yznd Street, at TGon~asAvenuc, looking east • 72nd Street Corridor: Adams Hill Park also allows access to 72nd Street. The trail could follow this residential street as far as a cemetery located between Upton and Penn Avenues. Whereas the western end of 72nd Street is much like 73rd, the right-of--way adjacent to the cemetery offers a better opportunity for off-road trail construction. The trail could then head southward into Richfield Junior High School at Newton Avenue. u J g6t6 Sn-eeg Richfield facilities. The airport has comnussioned a study o possible bikeway improvements and relocations associated with airport expansion (BRW, Inc., 1999). It is possible that these on road facilities could be upgraded with cooperation from the City of Bloomington, the Metropolitan Airports Commission and the National Wildlife Refuge. The trail could progress through R-ichfield Junior High School and Donaldson Park and then follow Humboldt Avenue southward to 76th Street. Humboldt Avenue has ample right-of--way for trail construction. The trail corridor could follow 76th Street eastward the entire length of Richfield. This roadway is likely to be narrowed from four lanes to three lanes, due to the intentional shifting of traffic to 77th Street. Such a reconstruction would provide excess right-of--way for trail construction. The trail could then cross Cedar Avenue on a proposed new bridge, and access existing on-road facilities leading to the Minnesota Valley National Wildlife Refuge. These on-road facilities follow the north frontage roads of I-494, cross the expressway at 34th Avenue, and then follow 80th Street into the refuge. The airport and the wildlife refuge seem to both be committed to improving bicycle access to and through their f AlteY"llate ROUteS: • The trail could begin in Minnetonka just west of Shady Oak Lake. Existing city trails lead from the Southwest LRT Regional Trail eastward into the Opus II Office Park. Within this office development, existing sidewalks could be upgraded and the trail could proceed across US 169 on Bren Road. This would allow access into the forested townhome development and Walnut Ridge Park in Edina. • Fred Richards Golf Course/76th Street: From the intersection of Nine Mile Creek and 70th Street in Edina, the trail could continue south along the creek, cross TH 100, and enter Fred Richards Golf Course. The trail could then skirt the northern edge of the course and access Parklawn Avenue and 76th Street. The trail could proceed eastward along 76th Street into Centennial Lakes. Another option here would be for the trail to continue along 76th Street all the way to I-35W. r' ~ ~ - 32 FIRST TIER TRAILS GREENWAYS PARKS MASTER PLAN Chapter 3: Preferred Scheme 6'~ ~ , . . m.?,.--, i ~' :9 r f ra.r -. x ,. ~.~.,' u" - ~ . ,~~~ry-` .yi .. ' -:°~'mg loth Sp'eet rtt Lynnta ,looking west • '70th Street R.ou.te: The trail could continue south within Heights Park to Brook Drive, where there is a small parcel of privately owned land between the park and another city-owned parcel along the creek to the south. Trail implementation could be difficult in this segment, and public support would be crucial. The trail could then enter the aforementioned city-owned parcel and follow the creek south and east to 70th Street. A crossing of the CP/Soo Line Mainline would be required in this segment. The trail could then follow 70th Street eastward to Lynmar. 70th Street has the width of a four-lane roadway, but is striped as a two lane roadway. Sidewalks exist on both sides. It is possible that this roadway corridor could be reconstructed to accommodate a regional trail. At Lynmar, the trail could proceed into Centennial Lakes as described above. Once in Centennial Lakes, the trail could follow existing trails into Yorktown and Adams Hill Parks, taking advantage of an existing trail underpass of York Avenue. From here there are two possible routes through western Richfield: 72nd Street and 73rd Street. 73rd Street Corridor: Adams Hill Park has existing trails that access 73rd Street. The trail could then follow 73rd Street eastward, dipping south into Richfield Junior High School and Donaldson Park at Newton Avenue.. 73rd Street is a residential street with narrow right-of--way and numerous trees. Trail implementation could be difficult in this segment. 73rr1 Sn-eet at Newtmr Avenue, looking west 1 31 FIRST TIER TRAILS GREENWAYS PARKS MASTER PLAN Nine mile Creek at 7otb Snret, looking wen Adani s Hill Park, looking west Centennial Lakes, looking east -U u U `: ~ u~ t~ i/alley Lane at 1/alley lretu Road, looking east ;. ~~ s• '' - --} ~;: 1/alley hem road at 68tG Shret, looking sontb Chapter 3: Preferred Scheme Farther along on Valley Lane, an existing trail easement provides access to Heights Park. The trail easement is narrow, but it leads to a high quality existing bridge over Nine Mile Creek. The trail could then follow the creek in Heights Park southward. From Heights Park there are two possible options for continuing the trail eastward across Edina: 66th Street and 70th Street. b6th Street Route: The connection between Heights Park and 66th Street would be difficult, requiring a railroad crossing, a steep grade change, and an easement on private property. Once across the railroad, however, the trail could connect to 66th Street via a utility storage facility at the western end of the street. 66th Street is a narrow residential street between Ridgeview Drive and TH 100. The eastbound lane is slightly wider than the westbound, however, and roadway narrowing may be possible. as far as Normandale Park which lies on the north side of the roadway. After the park, however, 66th Street has steep inclines and adjacent stone walls that could make trail implementation difficult as far as West Shore Drive, where an existing trail within Lake Cornelia Park on the north side of the road leads as far as Valley View Road. The trail could then progress southward along the west side of Valley View Road, where there is a wide right-of--way and an existing sidewalk. The trail could then cross to the east side of Valley View Road at 69th Street and proceed south to 70th Street. At the intersection of 70th Street, Valley View Road, and Lynmar, the trail could proceed south on Lynmar to Hazelton Road. Lynmar is a wide residential street which is blocked to through vehicular traffic at Mavelle Drive. South of Mavelle Drive, there is an undeveloped green space which could provide additional space for trail implementation. The trail could then proceed east along Hazelton Road and connect to existing trails within Centennial Lakes. Hazelton Road has existing sidewalks which could be widened, and offers access to commercial uses. I .~ 30 FIRST TIER TRAILS GREENWAYS PARKS MASTER PLAN 6616 Sn•eet at Ridgeview Drive, looking east Lynmar at Mavelle Diive, looking sotetb Chapter 3: Preferred Scheme Edina/Richfield Corridor {see Figure 8) This proposed trail corridor could begin where the Southwest LRT Regional Trail crosses I lth Avenue in Hopkins. Trails exist along a portion of l lth Avenue leading south to Westbrook Way. At Westbrook Way, the trail could progress eastward, following existing city trails, into a City of Hopkins park. Existing trails lead through this park, cross 2nd Avenue, and lead toward US 169. The trail could then pass underneath US 169, which is Hopkins city nni! to possiGle US r6y :order pass, elevated in this area, and enter Edina roughly following lookrng east Nine Mile Creek. The trail could then proceed southward along the Nine Mile Creek floodway, within achy-owned parcel, until it reaches a town home development near Londonderry Road. This town-home development has steep slopes-and is-heavily wooded. Trail implementation would be difficult in this area, but could generally follow the creek to Walnut Ridge Park. Multiple creek crossings in this area may be necessary. From Walnut Creek Park, the trail could cross Vernon Avenue at Gleason Road and follow Gleason Road all the way across TH 62, using existing trails associated with Bredesen Park on the east side of the roadway. The crossing of TH 62 on Gleason Road is not ideal, consisting of narrow sidewalks on the bridge. A supplemental non- motorized crossing. of TH 62 would be preferred. Another, option would be to construct a new pedestrian bridge over TH 62 further east in the vicinity of the creek. The trail could then depart from Gleason Avenue, pass through Bredesen Park, cross the highway, and touch Edina city nnil at Gleason Road, lookit:g down in Creek Valley Park. This could serve not only as a rmrtb emumd Nine Mile Cteek regional connector, but as a local connection between the schools on the south side of the expressway and the nature area on the north,. South of TH 62, the trail could enter Creek Valley Park and progress eastward past Creek Valley School and Edina High School alI the way to Tracy Avenue. This segment is comprised entirely of city-owned land. From here, the trail could cross Tracy Avenue at Valley View Road, upgrade an existing bridge over Nine Mile Creek at Valley View Road, and then follow Valley Lane eastward. Valley Lane has a very wide right-of--way and an existing narrow sidewalk. A regional trail facility would b.e easily implemented in this area. Nine Mile Creek at T my Avenue, looking wen 1 i 29 FIRST TIER TRAILS GREENWAYS PARKS MASTER PLAN ~,,. ~ ~ ~ ~~~y ~. ~ :._ 1 t~ 1 1 1 th Avcnuc a a` . V 1 I r _.K a~ , I CD 1; ~+ 1 ~ IS _ 1 1 ° _ fi ~e,"d` ~ • 1 ri 1 (~ I ~ 1 I.~:. I _._._.~._._ _ _ _._._._._._.~._._. 1 HIGHWAY l69 ~.L._ •~-+~°•--, HIGHWAY 169j /:~ ....I °vo/OO ~: ~.o I k~trr'~~r l:rq i'~ 1 r .i ~• i• j ='~ - I ~ ~- "" 1 / ~ s 1 ,~•I 1 %' _z`,- ~i•,.. ~ - ,~ r%A~:r„", rt i F .- d r. .: ~, ~5 1. _.. n ~. _. .. 1k 1 _~~~ i _~ -'r -- 1 ~ L~ I ~ IL ~ 1 `" v 7: 1 ! ~ I z` I ~7 Ij. = I _ I - ~'. C ' ~ ~, ~'? C. P. RnilronJ ~ i ~ ~' i I ~, T 1 i i'` ~ ~ j Z i I ~L I ~. -c j F ~ i ° a L_ ~~ `' 1 m I ~~.~, ~ _. ~ ~~ 1 [- ii t i ~ .x. ~~,~ _. F,~~ I ~-F I ? 1 F r_ 3 n I~ ~7. ._. _. _.1 1.i 'i r, IYan -;, ;/: c 1 G I 1 I 7 ! ___- 1 ~ Upton Ave ~ 1 ! ~ - __ ~ I I Penn Avenue ~ ~ ~ I ~~ ~ _ - Fr •~~ 1 ay^ _ -~' i _ , ' - - Logan Ave ~ 1 s 2 - i t 4 ~•'~`~ i H I G H W' A Y 3 5 W Q' ! .,;sF`~ i j 1 I 1 j 1 ^• is i Is i i Lyndale Avenue i ~ I I> 1 i ~ I Pmgrc.ciuc NailrnaJ I !A I I ~ IA I I I Nicollet:lvtnuc j I j 1 1 I ~ i ..a r+~ r I 1 ,. f i z sR ~ I E ~- I 1 ~ ~ j 1 ' ~ Portland Avenue j I "" - 1 1 1 _. I I I i ~ I ~ I?th :l~cime I ' - I A ~ 1 I 1 1 k J j i 6 j HIGH WAY 77 - i . j-•-•-• ._._._._._._._._._._._._._._._._._._._._._._. • i I ;r i xo ~~ ~ j 3 s =G b `s f., ~ y ~, ~;~ ~ Z ~ >e j ;~^ ~ - ~ „ ~ ~~; .~ o x ~ r ~ ~ . i< ~ s ~ ~ _ 7_ ry (~ _ r _ _ s ^• n I rr' ° i - ~~ ~ i ,:. Y 1 ~~ Ruwl .~ 1 ri o~ AGENDA SECTION: Consent AGENDA ITEM # 7H REPORT # 22fi J STAFF REPORT CITY COUNCIL MEETING OCTOBER 14, 2003 REPORT PREPARED BY: COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER STEVEN L. DEVICH, ADMINISTRATIVE SERVICES DIRECTOR ITEM FOR COUNCIL CONSIDERATION: Consideration of the attached resolution establishing authority for a Health Care Savings Plan for General Services Employees. I. RECOMMENDED ACTION: By Motion: Adopt the attached resolution authorizing the establishment of a Health Gare Savings Plan for eligible General Services em III. BACKGROUND In 2001 the Minnesota legislaturegranted authority to the Minnesota State Retirement System (MSRS) to offer a post retirement health care savings p[an 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. . 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 10/14 HCSP GS ra~~ 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 formula 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 may vary, however. Todate, only the Management employee group has aCity-approved Health Care Savings Plan. Other employee groups have expressed an interest and staff has pursued this matter with those groups based upon a plan design agreeable to the majority of each respective group. The General Services group, which is comprised of the City's office, clerical and technical employees, has approved the attached plan based upon a majority vote of the eligible employees voting on the matter. 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 program for General Services employees who are not represented by a collective bargaining unit. Union groups may choose to pursue this benefit through their respective collective bargaining. agreements. B. CRITICAL ISSUES • There is no time-critical issue pertaining to the implementation of this plan. However, the majority of General Services employees have expressed a desire to implement the program so it should be pursued at our earliest opportunity.. • After City approval, this plan must be submitted to MSRS for their approva( and filing. C. FINANCIAL ~ There is no cast 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. IV. ALTERNATIVE RECOMMENDATION(S~ • The City Council could decide not to approve this plan or to change the employee contribution limits proposed. However, if the City Council chooses to do so, this program should be resubmitted to the employee group to ascertain if there is still an interest to proceed. V. ATTACHMENTS • Resolution VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None RESOLUTION NO. RESOLUTION AUTHORIZING THE ESTABLISHMENT OF A POST RETIREMENT HEALTH CARE SAVINGS PLAN FOR GENERAL SERVICES 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 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 General Services 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 Gity of Richfield hereby authorizes the City Manager to establish a Health Care Savings Plan for the Genera[ Services group of employees in the City of Richfield. Adopted by the City Council of the City of Richfield, Minnesota this 14th day of October 2003. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk AGENDA SECTION: AGENDA ITEM # REPORT # J STAFF REPORT CITY COUNCIL MEETING OCTOBER 14, 2003 Consent 7G 225 REPORT PREPARED BY: COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: STEVEN L. DEVICH, ADMINISTRATIVE SERVICES DIRECTOR NAMF_, TLTLF ITEM FOR COUNCIL CONSIDERATION: Consideration of the attached resolution establishing. authority for a Health Care Savings Plan for police supervisory bargaining unit employees. I. RECOMMENDED ACTION: By Motion: Adopt the attached resolution authorizing the City Manager to execute a Letter of Agreement. establishing a Health Care Savings Plan for police supervisory bargaining unit employees LELS Local #162. III. 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. 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 1014HCSPPoIiceSupv 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 formula must be negotiated when 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 may vary, however. To date, only the Management employee group has aCity-approved Health Care Savings Plan. Other employee groups have expressed an interest and staff has pursued this matter with those groups based upon a plan design agreeable to the majority of each respective group. The police supervisory bargaining unit, which is comprised of the City's police sergeants., police lieutenants and police captain has approved the attached plan based upon a majority vote of the eligible employees voting on the matter. 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 program for police supervisory employees,. who are represented by a collective bargaining agreement through the Law Enforcement Labor Services, Local #162. B. CRITICAL ISSUES • There is no time-critical issue pertaining to the implementation of this plan. However, the police supervisory bargaining unit has expressed a desire to implement the program so it should be pursued at the City's earliest opportunity. • After City approval, this plan must be submitted to MSRS for their approval and filing.. 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. A Letter of Agreement between the City of Richfield and LELS, Local #162 will provide the full local authorization for this plan. IV. ALTERNATIVE RECOMMENDATION(S~ • The City Council could decide not to approve this plan or to pursue a change to the employee contribution limits proposed. However, if the City Council chooses to do so, this program must be renegotiated with the employee group, if there is still an interest to proceed. V. ATTACHMENTS • Resolution • Letter of Agreement -Police Supervisory Health Care Savings Plan VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None RESOLUTION NO. ~~ RESOLUTION APPROVING LETTER OF AGREEMENT BETWEEN THE CITY OF RICHFIELD AND LAW ENFORCEMENT LABOR SERVICES (EELS), LOCAL 162 ESTABLISHING A POST RETIREMENT HEALTH CARE SAVINGS PLAN 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 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 upon by police supervisory employees, represented by EELS, Local 162.. ,'~~ NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of - Richfield hereby approves a Letter of Agreement establishing a Health Care Savings Plan for police supervisory employees represented by EELS, Local 162 in the City of Richfield. Adopted by the City Council of the City of Richfield, Minnesota this 14th day of October 2003. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk ~ LETTER OF AGREEMENT Between The City of Richfield And Law Enforcement Labor Services, Inc. Local #162 The City of Richfield (City) and Law Enforcement Labor Services, Local 162 (Union) hereby mutually agree upon the following: I) A (Post Retirement) Health Care Savings Plan (HCSP) as described in Attachment A shall be implemented on the first payroll period as is reasonably feasible following the approval and notification to the City of Richfield of said HCSP by the Minnesota State Retirement System. II) The provisions of the HCSP as described in attachment A shall be made part of the next agreed upon collective bargaining agreement between the City and the Union. Said HCSP provisions may subsequently be amended upon the mutual agreement of the City and Union. The undersigned representatives for the Union and the City hereby agree this day of .2003. For the Union: For the City: AGENDA SECTION: Consent AGENDA ITEM # ]g REPORT # z2(E STAFF REPORT CITY COUNCIL MEETING OCTOBER 14, 2003 REPORT PREPARED BY: CORRINE H. THOMSON, CITY ATTORNEY NAME. T/TLE COUNCIL PRESENTER: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of first reading of an ordinance amending various sections in Chapter 7 of the Richfield City Charter. I. RECOMMENDED ACTION: By Motion: Approve first reading of ordinance amending various sections in Chapter 7 of the Richfield City Charter and schedule the public hearing and second reading for November 12, 2003. III. BACKGROUND ~ The Richfield Charter Commission had discussed, reviewed and proposed amendments to several sections of the Richfield City Charter. The attached ordinance amends Sections 7.01, 7.02, 7.03, 7.05, 7.06, 7.07, 7.08, 7.09, 7.10, 7.11, 7.12, 7.13, 7.14, 7.15 and 7.16 of the Richfield City Charter. Each of the changes is explained in the discussion draft used by the Charter Commission, which is attached. The Charter Commission approved the proposed changes and by a unanimous vote of 11-0 voted to submit the attached ordinance to the City Cour~c'rt. The public hearing and second reading are scheduled for November 12, 2003. III. BASIS OF RECOMMENDATION ~ A. POLICY _ ~ The proposed changes simplify and clarify the City Charter requirements regarding the budget process and financial matters. • The repeal of Section 7.04 will mean that the City Council will serve as the Board of Equalization for in property tax matters. B. CRITICAL ISSUES • The Charter provisions on the budget adoption process and financial matters should be written in clear and understandable language.. • Anew section has been added to clarify that the state Truth in Taxation procedures supersede any contrary city charter provisions. C. FINANCIAL • If first reading is approved by the City Council, this matter will be set for a public hearing. State law requires that the entire text of the ordinance be published in twice in the newspaper in advance of that hearing. On second reading, the ordinance must have unanimous approval in order to be adopted. Before the City Council directs the second reading and incurs the publication costs, the City Council may want to consider the likelihood of obtaining unanimous approval upon second reading. D. LEGAL • The Council must approve the ordinance unanimously in order for the ordinance to be effective. TERNATIVE KECOMMENDATION(S) ~ The Council may modify the amendment as proposed. The Charter Commission must approve any modification to the ordinance, and the Council must approve the modified ordinance unanimously in order for the Charter amendment to be effective. The Council may reject the proposed amendment. Anything less than unanimous approval of the proposed amendment effectively operates as a rejection of the amendment. The Charter Commission would have the option, but not the obligation, to require that the proposed amendment be submitted to the voters at the next election. ~ V. ATTACHMENTS ~ • uramance • Discussion draft • Letter and Charter vote from Easterwood PRINCIPAL PARTIES EXPECTED AT MEETING • John Easterwood, Charter Commission President BILL NO. AN ORDINANCE RELATING TO CITY GOVERNMENT; MODIFYING AND CLARIFYING FINANCIAL AND BUDGETING PROCEDURES; AMENDING SECTIONS 7.01, 7.02, 7.03, 7.05, 7.06, 7.07, 7.08, 7.09, 7.10, 7.11, 7.12, 7.13, 7.14, 7.15 AND 7.16 OF THE RICHFIELD CITY CHARTER; REPEALING SECTION 7.04 FROM THE RICHFIELD CITY CHARTER; ADDING A NEW SECTION 7.17 THE CITY OF RICHFIELD DOES ORDAIN: Section 1. Background; findings; authority. 1.01. The City of Richfield (City) is governed by home rule charter adopted pursuant to the Constitution of the State of Minnesota and Minnesota Statutes, Chapter 410 (Act). 1.02. The Charter Commission of the City has proposed the adoption of certain Amendments to Chapter 7 of the charter and has recommended to the City Council that the Amendments be adopted by City Council ordinance in the manner prescribed by Section 410.12, Subdivision 7, of the Act. 1.03. A public hearing on the Amendments was held on by the City Council after two weeks' published notice containing the text of the Amendments as required by the Act. The notice contained a brief description of the nature and scope of the Amendments. All persons desiring to be heard with reference to the Amendments were heard at the public hearing. 1.04. The Council finds and determines-that it is in the best interests of the City and its inhabitants that the Amendments be adopted. Section. 2 Adoption; effective date; filing. 2.01. The Amendments as proposed by the Charter Commission are adopted. 2.02. Section 7.01 of the Richfield City Charter is amended to read as follows: Section 7.01. Council to Control Finances. The Council ch,ll h,..° f~ ~n controls the financial affairs of the City, „^~' c"~" The Council must provide for r'i the rp omit collection of all revenues ii the preservation of a~--e#~er assets, iii the auditing ~^~' °°++'°m°^+ of C accounts, and w) a~ the safekeeping and ~1°h~ mc•°„-,°nic rp oper disbursement of public monies. 2.03. Section 7.02 of the Richfield City Charter is amended to read as follows: Section 7.02. Fiscal Year. The fiscal year of the City a is the calendar year. 2.04. Section 7.03 of the Richfield. Gity Charter is amended to read as follows: Section 7.03. System of Taxation. Subject to the state constitution, and except as forbidden. by it or by state leg+sla~t~e~ law, the Council s#atl may provide by e~dnse resolution, preceded by notice (~ and public hearing, for a system of ~esa#~en local taxation. In the taxation of real and personal property ~^ °~ ~^" +"° ~~*~~ c"°" the system of local taxation must conform as fully as possible to +~--tea; state law as-4e in the ~.~~ssm~ valuation of s property and the collection of the taxes. 2.05. Section 7.04 of the Richfield City Charter is repealed. 2.06. Section 7.05 of the Richfield City Charter is amended to read as follows: Section 7.05. Preparation and Submission of Annual Budget. ~#e of At a special budget meeting of the Council on or before t~~ ~+ Tea^~; September 15, the City Manager must submit to the Council a ,proposed budget and afl-e~c~~a~ate~ a budget message in a the form and ~`~ ;~ containing the information as-l~essr-+bed specified in Section 7.06. Fria^"~,-;~~~-^~-~sus~ dale-as~e-e~-j~ °"^' ~'°+~ In ~reparing the budget and the budget message, the Si#a} Manager s#afl must obtain from +"° "°°~' ^f °°^h C~ department heads information regarding ~ +;~sh~; a~crc~ bjes ~'°+°i'° ^{ proposed expenditures *~^get#er~v+t~-~u~-et#er-eui~~--data-as-kFe-e~~e-r~a~ r°,.,,°~+ in„~.,,+in^ ~n °~+ir»^+° ^+ °~~ for the ensuing fiscal year, and (ii) capital projects 8F and capital expenditures `"'Minh °~+rh rl°nnrFm°n+ h°~r! nnnci.-J°rr• see-Id proposed to be undertaken in him nr h°r r!°n~r+rr~°n+ fnr the ensuing budget year and in the nee following four fiscal years. 'n nr°n~r,n,. +h° The Council sl~al.l must Tev~eva~-tki~ ' °+°°~ch, hold one or more informational t-ieas #-hereer~ meetings on the proposed °~+~- e comments and may thereafter revise i and capital nroiects contained in the 2.07. Section 7.06 of the Richfield City Charter is amended to read as follows: Section 7.06. Form of Annual Budget. Subdivision 1. The budget ,~- must contain a ssr~lete financial .plan ^+ °" f„n,~° for the ensuin get fiscal year. wish-~#al1 The financial plan must include: {e-} a budget message, {~-} ii a general summary of the financial plan, {s} iii detaiae~ estimates of revenues applicable to proposed expenditures, and, {~} iv a~4 proposed expenditures. Tie ~syesed Proposed expenditures ~s~gat-I may not exceed t~h~e proposed revenues. ~e Proposed expenditures for the general and special revenue funds e#a~l must be listed by organization,, unit or activity1 and ii s#~ai-I be in parallel columns opposite the major e~ and minor object of the expenditure showing the amount of su£# expenditure for the last ser~~leted fiscal year, the amount estimated for the current met fiscal year and the proposed expenditures for the ensuing met fiscal year. ~n f„n~,~ n+h°r t#a-r~ The revenues attributable to each general and special r°`~~ fund #~e nrnn sed-ex~e~+t~r-es'-sl~ll must be presented in ~~~°r°+~~^~'^"'° a similar manner The ^~ag°~n^'~l-satin^,~.,,,T-a-dets;;°~~statement of revenues ~n n^I~ ~mnc~ fnr +h° amount of miscellaneous revenues, revenues1 and the amount of rever I-It must include the source of and the amount of surplus of prior fiscal year ues raised by property taxes in the prior ed in the current. fiscal year. °°`~~ Subd. 2. The Budget Message_ ~~,rr°n+ nn°r°+i^nc. The budget message may be submitted by the S+ty Manager as a separate document #er in the ~f^rm nnrl ~eii+h nnn+°n+~ .~~ +^Ilro"ic• but it must accompany the budget. The message s#atl must contain the following elements. budget. The message must contain an outline of the proposed financial ~el+si~s op sition of the City for the ensuin met fiscal year and s r1~JOnr~h° ~r, ^^nn~+inn +h°r°~~ii+h the important features of the met financial plan of the City. ~~~~~~" R"=e The message must give reasons for major changes in expenditures and revenues from the p~iees prior fiscal year +p-s~st and T~°~,~~~,^;s ^~~n~,;: explain a-m} the rationale for major changes, if any, from previous +r~ financial pel+ey policies of the City. ii ~~'^e~-Message-- Capital Improvements=_ ~c ^ ^^~+ ^f +h° met The message wi+~el~tie" +^ +h° r.rnr~n~°rt °vr.°r,rlifi ~r°o fnr n~r~i+ol and proposed iii ~~'^e#-Messe,~ Capital Program=. The ' °'°^ i^^',,,+° ir, +"° message must contain, or ^#°^h +h°r°+^ have attached to it, a Capital Protect Plan for the #+ve four fiscal years ^°v+ °~ ~^^°°~'i^n following the fiscal year of the budget year;_ The Capital Project Plan is to be prepared by .the ~~ ^nmmiccinn if c~ ~^h +h h° +^n°+h°r ~eii+h +h° f`i+v AA^n^n°r~~ t#eree ^^~' ^^~~-~i~tes-~-^~~ ^-~epaTed-ay the Manager after consultation with the department heads under Section and any informational meetings conducted ivl Miscellaneous. The Manaaer must attach A~asf~e~-to or include in the budget message s#a~l-f~e~s#~ supporting schedules, exhibits and other ex^'~e m^tera',T-,,;-~~es~to~ h~-^~rT~e~+,~~R Ta believed by the Manager °h^II h°li°..° „~°f~ ~~ +n ' to be appropriate and informative. 2.08. Section 7.07 of the Richfield City Charter is amended to read as follows: Section 7.07. °ra~~^° of ~ nn~ ~^I R~ ~rlp~ Adoption of Budget. At the conclusion of the special budget meeting; the Council ~tdtF must ~'°+e +h° °~^^° ^^~ +im° ^f +h° set a public hearing on the budget; to be held after published a notice e# tfie-t+me-a+~~+e~ ^~ ~h'i^ h°^rin/v +„ h° h°~,~ not less than seven ~S nor more than #eu~teee 44 days after the date of publication. The budget ohon h° ^ °„hr,^ r°^nrr! in +h° rvF+i^° r,f +h° ri+., ri°rL ^n°n must be kept available to the public +n-spesj~ aeuene in the Clerk's office. ~G+taa~er-sla ^~ ~ ~ ~~i^;°^+ ^^r,i°° public hearing. on the budget meet+t~g~s-aa~PertES°~' ch^" h° h°I,+ ,n,~ ^r~irt~~r^m +~ +i'-'[rn e-~^crnu must be conducted eA-as in a way to give interested ^i+~„~ erp sons ^ r°•±onn~±h~° an opportunity to be heard. The h,~,~ef-estimates~ha~-be-~°°~'~~ a+~d~"e~y Manager s~at1 must explain the various S elements #~ereef of the budget as fully as m,,,~ is deemed necessary by the Council. ,+„rin^ +h° h,,,+..°+ „°^r together with estimates of the costs of those projects and the sources of funds to be used to paYfor them. ~°r +h~+n +h° I~+c+ rl~+~~,~.5,~ i fnr +h° ~`n~ in+~i D ~ irJi+nr +n I°~ni taxes. The budget resolution el~atl `m' u^'s~t s~ et #ert# out the total established for each Meted fund and easy department with such c°^r°,.~+i„n ~~ +„ ~ sbjesl:s ^nra ^~,rn^°°s--s~e~c~er-~d+t+~-~~+" other information deems deemed necessary ~ the Council. ~+sk- The budget resolution s#atl must also state the amount of property and other taxes to be levied to fund the budget. 2.09. Section 7.08 of the Richfield City Charter is amended to read as follows: Section 7.08. Enforcement of the Budget. The Manager s#atl must s~istl-y enforce the provisions of the budget as~esm ~'~-, ;-zhe a~etstien. The Manager salt may not authorize or approve any expenditure unless an appropriation has been made in the budget resolution and there is an available unencumbered balance of the appropriation sufficient to pay the liability to be incurred. l~ls An officer or employee of the City salt may not place a~ an girders order or make a~ a purchase except for the purposes authorized in the budget. ~ An obligation incurred by a~ a person in the employ of the City for a~ a purpose not in the approved budget or for aryF an amount in excess of t~-ie an amount appropriated in the budget resolution or in excess of available monies in a~ a fund of the City is a personal obligation a~ of the person incurring the expenditure. 2.10. Section 7.09 of the Richfield City Charter is amended to read as follows: Section 7.09. Altering or Adjusting the Budget. After the budget ~aA #ave has been dt~y adopted; the Council may not increase the amounts fixed in the budget resolution, by the insertion of new items or otherwise, d in an amount more than the estimated revenues; unless the actual receipts exceed the estimates and then not ~ more than the actual receipts. The Council may °+~~~„e, by resolution v~~~ fns ~r fi#hc•~~~~~_ mT~~ reduce the sums appropriated for any purpose by the budget resolution. Within three months followina the close of the fiscal vear. the Council. At at the request of the manager, may transfer unencumbered appropriation balances for that fiscal year from one office, department or agency to another within the same fund. Alt Appropriations s~+alt lapse at the end of the budget year to the extent that they met have not been expended or j~encumbered. 2.11. Section 7.10 of the Richfield City Charter is amended to read as follows: Section 7..10.. Emergency Appropriation in Budget. The Council may include an emergency appropriation as a part of the budget but not exceed more than three gip rcent of the total operating appropriations made in the budget for that year. A transfer from the emergency appropriation to aey--ether another appropriation s#atl may be made e~y t~er~ by resolution on recommendation of the City Manager or a member of the Council The funds tk~-s so appropriated may be used only for the purposes designated by the Council. 2.12 Section 7.11 of the Richfield. City. Charter is amended to read as follows: Section 7.11. Disbursements. How Made. Pls Except as otherwise provided in this section, ~i°"„r°°^,°^+ disbursements of City funds ~Qtt may be made ~sept only by check bearing the actual or facsimile signature of the Manager and the treasurer. A!•e-sttsl~ A check el~t may not be issued unless the claim to which it relates specifies the purpose for which the ~-,, disbursement is made and the fund upon which it is drawn, and the claim has been supported by an itemized bill, payroll, or time sheet approved and signed by the responsible City officer who vouches for the correctness and reasonableness t~eree# of the claim. The Council may by ordinance make further regulations for the safe-keeping and disbursement of the funds of the City, including, the disbursement of funds for the payment of bills and obligations by electronic means. 2.13. Section 7.12 of the Richfield City Charter is amended to read as follows: Section 7.12. Funds to be Kept. There smell must be maintained in -the City treasury the-funds provided for in this s~bd+v+sier~: section. Subdivision 1. General Fund: The General Fund is established for the payment of ail general government expenses and those obligations e# that the City deems deems proper. Into this fund el~t are to be paid atl monies not otherwise provided ,"~e~i+~~ by statute= erg ordinance or this Charter to be paid into any other fund. Subd._2. Liquor Special Revenue Fund; Other Special Revenue Funds:_. A Li uor Special Revenue Fund is established a~ into which e are to be paid ~ +h°+y frnm n~ ~hlin ~°n,~~~~ °rnn,~~~ innL ~rlinn +h° nrp n~~rnm +h° ~in,.nr ~+nr°, net revenues (i.e., gross~`r'e~vMenues less costs of operation. maintenance and aledaed revenues) of the municipal liquor store. ii proceeds #rer~ of special tax levies to support the fund,. and iii other special revenues so designated by the Council. T "°r° °"°" "° n°i,+ ^,.+ ^f Revenue Fund may be made only as authorized by the budget resolution; ^p,~;a ~~~~e~t#a~sus~i-gaen;~. Monies in the fund may be ~se~ expended for capital improvements o~tkk.~--+~~; ,.~~ ri+., ,.,n„~,~ r,° only if authorized by ordinance. The _ Subd_ 3. Utility; Enterprise Funds:_ One or more utility or e##er public service enterprise funds are to be established into which s#all are to be paid ~ m~ix2r~~r-t~~a'° r'f hnn,J~ ic~y,~°~T °n+~p"~ (i) the gross revenues of the appropriate utility or enterprise, (iii the proceeds of the sale of assets of the utility or enterprise. and (iii) the enterprise. ~ ~h.~ll h° n,i,+ n..+ Out of each ^f~ fund are to be paid the ssst costs, including. the financinc} costs of the purchase, construction, operation, maintenance and repair of sum the utility or enterprise; +nslud-ia~ h° r+rinninol of ~+nr+ in+~~ ~ ~nnn nhlin~+inn ~e,hinh h.w° h°°n norr ahc ssu°~'~--o„--h °-~ ;t and other revenues as directed by the budget resolution. Separate funds smell must be established and kept for °" ~~ nr n~ ^~~er+ter-p~+ses wish-aye--ep°~ted °°n°r°+°'" each separate utility or enterprise. Subd. 4. Trust and Agency Funds:_ There are to be established 8ne one or more trust and agency funds for the care and disbursement of money received and held by the City as trustee or custodian or in the capacity of an agent for individuals or other governmental units. ~` Subd. 5. Discretionary Fund. A Discretionary Fund is established for payment of reasonable and necessary expenses, not otherwise payable by the City as compensation, incurred by the Mayor and Council Members for the benefit of the City °^^'~*~eeple. Appropriations to and expenditures from this fund °"~" ^^+ °vn°°rd @x(1(1 .,°r ..°,r are in the amounts fixed in the budget resolution. The Council may by resolution establish the purposes and procedures for the making of disbursements from this fund, including disbursements made without previous Council authorization s#a~l and those disbursements be are subject to audit and allowance by the Council. Subd. 6. in addition to the foregoing funds, there may be maintained in the City treasury, e~°~-`P'er r^~~nnil rl°°me ;+ ,~,.,,~°"~°; ~ ~ one or more working capital or revolving funds, for financing self-sustaining activities not accounted for through other funds; and {~} ii such other funds as may be required by °+°+~or law. ordinance or the Charter. Subd. 7. ~k-e Council may make interfund loans by resolution where permitted by law except from Trust and Agency funds. 2.14. Section 7.13 of the Richfield City Charter is amended to read as follows: Section 7.13. Accounts and Reports. The accounts of the City e~tl must be maintained on an accrual or modified accrual basis in accordance with generally accepted governmental accounting standards and procedures. The S+t~ Manager s#afl must submit such reports as `""~ are necessary +R girder to keep the Council fully informed of the financial condition of the City. Once each year on or before June 3Q, the City. Manager el~t must submit a complete financial report of the City for the preceding fiscal year ending December 31, a summary of which sl~tl must be published in the official newspaper. The Manager, under the direction of the Council, on or before June 30 e~ " ~~°°r, I must prepare at least one comprehensive public information report of the financial affairs of the City. `~'~{pnnrF ~"~~7r~ infr+rm~+i~i° fiir~° Sh.~l~l "~° rlic+ri"~ ~~°rd ~i~~n~ii~ The Manager_must distribute the report to-the persons and organizations and in the manner dee 2.15. Section 7.14 of the Richfield City Charter is amended to read as follows: Section 7.14. City Indebtedness. Except as provided in Sections 7.15 and 7.16, ne obligations s~atl may not be issued to pay current expenses, but the Council may issue and sell obligations for any other municipal purpose in accordance with law. and within the limitations prescribed by law. Except in the case of obligations for which an election is not required by this Charter or by state law, tie-susf~ obligations ~t may not be issued and sold without the approval of the majority of the ~'g+s-tere~ voters of the City voting on the question at a general or special election. Befare submitting a question to the voters under this Section, the Council must conduct at least one public hearing on the question preceded by published notice ^~ ~hlich°,~ ;., nev~spe~er{s~Setesfed--5~ 'not more than 28 days nor less than 14 days prior to the hearing. 2.16. Section 7.15 of the Richfield City Charter is amended to read as follows: Section 7.15. Tax Anticipation Certificates. At any time after January 1, following the making of an annual tax levy, the Council may issue certificates of indebtedness in anticipation of the collection of taxes levied for any fund and not yet collected. The total amount of certificates issued against any fund for any year with interest thereon until maturity s#atl may not exceed ~~ 90% of the total current taxes for the fund uncollected at the time of issuance. Certificates s#atl may be issued on such terms and conditions as the Council may determine but they shall become due and payable not later than the first day of April of the year following their issuance. The proceeds of the tax levied for the fund .against which tax anticipation certificates are issued and the full faith and credit of the City s#atl must be irrevocably pledged for the redemption of the certificates in the order of their issuance against the fund. 2.17. Section 7.16 of the Richfield City Charter is amended to read as follows: Section 7.16. Emergency Debt Certificates. If in any year the receipts from taxes or other sources should from some unforeseen cause become insufficient for the ordinary expenses of the City, or if any calamity or other public emergency should subject the City to the necessity of making extraordinary expenditures, the Council may by resolution issue and sell on such terms and in such manner as the Council determines emergency debt certificates to r~ ~n nn+ +„ e...-oo,~ +..,n mature within three years. A tax sufficient to pay principal and interest on such certificates ~wi+m-- m~rnin ron~~iro.J h., ~~~., ~h,~~ must be levied as required by law. The resolution authorizing an issue of such emergency debt certificates s#atl must state the nature of the emergency and be approved by a majority of all the members of the Council. 2.18 Chapter 7 of the Richfield City Charter is amended by adding a new section as follows: schedule a Procedure. If state law specifies a n roced u re 2.19 This ordinance is effective ninety (90) days after its publication, except that if within sixty (60) days after publication a petition requesting a referendum on this ordinance, signed by the number of registered voters of the City required by the Act is filed with the City Clerk, this ordinance will not be effective until approved by 51 % of the voters voting on the question of its adoption at the special election called by the Council for that purpose. 2.20 On the effective date of the Amendment, the City Clerk is authorized and directed to file copies of the Amendment with the Secretary of State of the State of Minnesota, the Hennepin County Recorder, and the City Clerk's office together with the certificate required by Section 410.11 of the Act. Passed by the City. Council of the City of Richfield, Minnesota. this day of 2003. Martin J. Kirsch; Mayor ATTEST: Nancy Gibbs, City Clerk DISCUSSION DRAFT CHAPTER? TAXATION AND FINANCES TAXATION AND FINANCE Section 7.01. Council to Control Finances. The Council shall have full authority over the financial affairs of the City, and shall provide for the collection of all revenues and other assets, the auditing and settlement of accounts and the safekeeping and disbursements of public monies. Section 7.01. u monies. e ncil controls the auditi Section 7.02. Fiscal Year. The fiscal year of the City shall be the calendar year. Section 7.02. Fiscal Year. The fiscal year of the City is the calendar Year. Section 7.03. System of Taxation. Subject to the state constitution, and except as forbidden by it or by state legislation, the Council shall have full power to provide by ordinance for a system of location taxation. In the taxation of real and personal property as such, the City shall conform as fully as possible to the general state law as to the assessment of such property and the collection of such taxes. NOTE: Notice and hearing before the adoption of a tax ordinance would probably take place anyway since it is probably constitutionally required. It seems desirable to include that requirement here.. The commission should be aware that the possibility of the City being able to use this provision in the foreseeable future and beyond is about zero. Section 7.04. Board of Equalization. The Board of Equalization shall consist of the members of the Council and two residents of the City appointed for a one year term by the City Manager and approved by the. Council. The two resident members shall be experienced in real estate matters and shall. receive such compensation as the Council may determine. The Board of Equalization shall equalize assessments of property for taxation purposes according to law.. As soon as any real estate has been. reassessed, the affected property owner shall be notified by the assessor of the amount of the change and the reasons therefor. Section 7.04. Repealed. --------------------------- ~~ NOTE: The final sentence of existing section 7.04 is outdated. State law (Minn. Stat. Chapter 274) provides that no one's property valuation may be raised by the board without prior notification. There seems to be no good reason to notify a property owner of a reduction in valuation; and under the existing language, a wholesale reduction in valuation would require notice to all property owners. It should be noted that the valuations approved by the Board are all subject to review by the County Board of Equalization. The requirement for two resident members is probably unique. It is doubtful that such members are required since almost all of the technical data on valuation is supplied by the City and County Assessors. if the members are retained, a term should be specified. The city council recommended that Phis section be repealed. The effect of doing so will be that the city council will serve as the Board of Equalization, unless the city council delegates its duties to the county as provided by Minnesota Statutes § 274.01. Section 7.05. Preparation and Submission of Annual Budget. The City Manager shall, at a special budget meeting of the Council on or before the first Tuesday in September, submit to the Council a budget and an explanatory budget message in a form and manner as prescribed in Section 7.06. For such purpose and at such date as he or she shall determine, the City Manager shall obtain from the head of each department the character, object and details of proposed expenditures together with such other supporting data as he or she may request, .including an estimate of all capital projects or capita! expenditures which each department head considers should be undertaken in his or her department for the budget year and the next five years. In preparing the budget the City Manager shall review the estimates, shall hold hearings thereon and may revise estimates, as he or she may deem advisable. (Amended Bill 1990-13) 7.05. Prega er must submit heads information n or ati n proposed to be undertaken. in the ensuing budget year and in the following four fiscal vears. The Council must hold one or more informational meetings NOTE: The projection of capital projects is changed from the existing five years to four. Four plus the present fiscal year makes for a more standard five-year capital improvement program. The deadline for submitting the proposed budget to the council has been changed to September 15, which is the same date as that provided by state law for the submission of the preliminary levy. The deadline established in this section is actually meaningless while the state Truth in Taxation Law remains in effect. Under the new section 7.17, the city would follow state law requirements for preparation of its budget and not the deadlines in the charter. But the September 15 deadline is retained here, in case the Truth in Taxation !aw is ever repealed. ~~ The city council requested that the requirement for the manager to _ hold public hearings be changed to a requirement that the council hold informational hearings. Section 7.06. Form of Annual Budget. The budget shall provide a complete financial plan of all funds for the budget year, which shall include: (a) a budget message, (b) a general summary, (c) detailed estimates of all anticipated revenues applicable to proposed expenditures, and, (d) all proposed expenditures. The proposed expenditures shall not exceed the proposed revenues. The expenditures for general and special revenue funds shall be by organization unit or activity and shall be in parallel columns opposite the character and -major or minor object of expenditure showing the amount of such expenditure for the last completed fiscal year, the amount estimated for the current budget year and the proposed expenditures for the ensuing budget year. In funds other than general and special revenue, the proposed expenditures shall be presented in an understandable manner according to the discretion of the City Manager. The City Manager shall submit a detailed statement of revenues in columns for the general and special revenue funds for the last completed fiscal year, the amount established for the current budget year and the amount estimated for the next budget year. Such detail shall include the source of miscellaneous revenues, the amourt of surplus of prior year revenues and the amount raised by property taxes. Revenues for self-supporting and other funds shall be presented in an understandable manner according to the discretion of the City Manager. The explanatory budget message may be separate but still accompanying the budget, and be in the form and with contents as follows: (Amended Bill 1990-13) must conta Form of Annual Budget. Subdivisi icial plan for the ensuin fq ~scal year. budget message, (ii) a general summ ~f revenues applicable to proposed ex~ res. Proposed expenditures may no i exoenditures for the aeneral and spe financial p F the financ :ures, and i red propo~ venue fur ~e in oars columns opposite the maLr ana minor op~ect or the expenaiture snowing the amount of expenditure for the last fiscal vear. the amount estimated for the current misce year. ra na ues must ra Budget Message -Current Operations: The budget message submitted by the City Manager for the Council shall be explanatory. of the budget, shall contain an outline of the proposed financial policies of the City for the budget year and shall describe in connection therewith the important features of the budget plan. ft shall set forth the reasons for major changes from the previous year in cost and .revenue items and shall explain any major changes in financial policy. Budget Message -Capital Improvements: As a part of the budget message with relation to the proposed expenditures for capita[ projects stated in the budget, the City Manager shall include a statement of pending capital projects and proposed new capital ~- projects, relating to the respective amounts proposed to be _ raised therefor by appropriations in the budget and the respective amounts, if any, proposed to be raised therefor by the issuance of bonds during the budget year. Budget Message -Capital Program: The City Manager shall also include in the message, or attach thereto, a capital program of proposed capital projects for the five fiscal ~~' years next succeeding the budget year, prepared by the planning commission, if such there be, together with the City Manager's comments thereon and any estimates of costs prepared by the department of public works or other office or department. For the use of the planning commission in preparing such capital program, copies of departmental estimates of capital projects, filed with the City Manager pursuant to Section 7.05 of this article, shall be filed with the commission. (Amended Bill 1990-13) Attached to the budget message shall be such supporting schedules, exhibits and other explanatory material, in respect to both current operations and capital improvements as the City Manager shall believe useful to the Council. Subd. 2. The Budget Message. The budget message may be submitted by the Manager as a separate document but it must accompany the budget. The message must contain the followingelements. (i) Current operations. The budget message must explain the budget. The message must contain an outline of the proposed financial~osition of the City for the ensuing fiscal year and the important features of the financial plan of the City. The message must give reasons for major changes in expenditures and revenues from the prior fiscal year and explain the rationale for maior chanaes. if any. from previous The messaae must escri The messaae costs n department heads under Section 7.05. four fiscal r consultation NOTE: The city council requested the deletion of the requirement that the Capital Project Plan be presented to the planning commission. iv) Miscellan scneau informative. Section 7.07. Passage of Annual Budget. At the special budget meeting, the Council shall determine the place and time of the public hearing on the budget, and shall cause to be published a notice of the time and. place of the public hearing to be held not less than seven days nor more than fourteen days after publication. The budget shall be a public record in the office of the City Clerk open. to public inspection by anyone. The City Manager shall cause sufficient copies to be prepared for distribution to interested persons and civic groups. The budget meeting as advertised shall be held and adjourned from time to time and conducted so as to give interested citizens a reasonable opportunity to be heard. The budget estimates shall be read in full and the City Manager shall explain the various items thereof as fully as may be deemed necessary by the Council. The Council shall adopt the budget no later than the last date established by taw for the County Auditor ~' to levy taxes. The budget resolution shall set forth the total for each budgeted fund and - each department with such segregation as to objects and purposes of expenditures as the Council deems necessary for purposes of budget control. Such resolution shall also state the amount of taxes to be levied. budget meeting the Council must set a public hearing on the budget to be held after published notice not less than seven nor more than 14 days after the date of publication. The budget must be kept available to the public in the Clerk's office. The public hearing on the budget must be conducted in a way to give interested persons an opportunity to be heard. The Manager must explain the various elements of the budget as fully as is deemed necessary by the council. The budget resolution must set out the total established for each fund and department with such other information deemed necessary by the Council. The budget resolution must also state the amount of nronerty and other taxes to be levied to fund the budget. --------------------------- NOTE: See proposed new section 7.17, which recognizes that the budget adoption and tax levying procedures in the Charter must conform to the State "truth in taxation laws': If these laws are repealed, the Charter procedure at sections 7.05 through 7.07 would control. Section 7.08. Enforcement of the Budget. The City Manager shall strictly enforce ~ the provisions of the budget as specified in the resolution. The City Manager shall not authorize or approve any expenditure unless an appropriation has been made in the budget resolution and there is an available unencumbered balance of .the appropriation sufficient to pay the liability to be incurred. No officer or employee of the City shall place any orders or make any purchase except for. the purposes authorized in the budget. Any obligation incurred by any person in the employ of the City for any purpose not in the approved budget or for any amount in excess of the amount appropriated in the budget resolution or in excess of available monies in any fund of the City may be considered a personal obligation upon the person incurring the expenditure. (Amended- Bill 1990-13) Section 7.08. Enforcement of the Budget. The Manager must enforce the provisions of the budget.. The Manager may not authorize or approve anv expenditure unless an appropriation has been made in the budget appropriation sufficient to employee of the. City may the purposes authorized in the employ of the City for amount in excess of an ai excess of available monies person. incurring the expen maKe a an is a bersonal obligation Section 7..09. Altering or Adjusting the Budget. After the .budget shall have been duly adopted, the Council shall have. no power to increase the amounts fixed in the budget resolution, by the insertion of new items or otherwise, .beyond the estimated. revenues, unless the actuaC receipts exceed the estimates and then not beyond the actual receipts. The Council may at any time, by resolution approved by afour-fifths majority of its members, reduce the sums appropriated for any purpose by the budget resolution. At the request of the Manager, within the last three months of the fiscal year, the Council may transfer unencumbered appropriation balances from one office, department or agency to another within the same fund. All appropriations shall lapse at the end of the budget year to the extent that they shall not have been expended or lawfully encumbered. Note: The requirement of a four-fifths majority of the Council to reduce budget allocations is removed: there seems to be no good reason for this requirement. The budget itself is adopted by a simple majority and extraordinary majority vote requirements promote minority rule by giving extraordinary weight to the one additional vote needed for passage. It should be noted that this 4/5th's rule is a common requirement in city charters and is the rule in statutory, (non-charter) cities. But the rule has been included in the League of Cities Model Charter since it was first prepared some 60 years ago when reasons for it may have been more evident. The_rule is somewhat like the "QWERTY" phenomenon on the typewriter keyboard which everyone agrees is cumbersome but repeated attempts to rearrange the keys have not been successful. City staff requested the change to allow accounts to be reconciled within three months after the close of the fiscal year. Section 7.10. Emergency Appropriation in Budget. The Council may include an emergency appropriation as a part of the budget but not. exceed three per centum of the total operating appropriations made in the budget for that year. A transfer from the emergency appropriation to any other appropriation shall be made only upon recommendation of the. City Manager or a member of the Council and by a majority vote of the Council. The funds thus appropriated shall be used only for the purposes designated by the Council. Section 7.11. Disbursements. How Made. No disbursement of-.City funds shall be made except by check bearing the actual or facsimile signature of the City Manager and the treasurer. No such check shalt be issued unless the cla+m to which it relates specifies the purpose for which the disbursement is made and the fund upon which it is drawn, and has been supported by an itemized bill,. payroll, or time sheet approved and signed by the responsible City officer who vouches for the correctness and reasonableness thereof. The Council may by ordinance make further regulations for the safe-keeping and disbursement of the funds of the City. --------------------------- NOTE: Strictly read, the existing language does not permit payments by credit card or wire transfer, an increasingly common practice. The new language assumes that the City Council will carefully circumscribe the practice while permitting its use when essential. Section 7.12. Funds to be Kept. There shall be maintained in the City treasury the funds provided for in the following subdivisions: Section 7.12. Funds to be Kept. Section 1. There must be maintained in the City treasury the funds provided for in this section. Sub. 1. General Fund: The General Fund is established for the payment of all general government expenses and obligations of the City as the Council may deem proper. ~., Into this fund shall be paid all monies not otherwise provided herein, or by statute or by ordinance to be paid into any other fund. Subdivision 1. General Fund: The General Fund is established for the payment of general government expenses and those obligations that the City deems proper. Into this fund are to be paid monies not otherwise provided by statute. ordinance or this Charter to be paid into anv other fund. Sub. 2. ~ecial Revenue Fund: A Special Revenue Fund is established and into which shall be paid the profits from public service enterprises, including the profits from the liquor store, proceeds from special tax levies. and other special revenues. There shall be paid out of this fund monies for such purposes as authorized by the budget resolution; provided, however, that such monies may be used for capital improvements of the type for which the City would be authorized to issue general obligation bonds only by ordinance. --------------------------- ~~; NOTE: The term "profits" is not appropriate for municipal enterprises: The new definition of "net revenues" is uniformly recognized in governmental accounting. It is doubtful that all "profits" (i.e., net revenues) of the water, sewer and storm sewer utilities are presently paid into this fund. If this is desirable; it may be done by the Council under (iii) "other special revenues'; or by the budget resolution. The "provided" language is not helpful. The City is authorized by law -- (and this Charter) to issue general obligation bonds for any capital purpose: the requirement for an ordinance seems unnecessary since the ordnance would not be subject to referendum. City staff requested clarification that this section does not prohibit the city from establishing other special revenue funds with non-liquor funds. Sub. 3. Utility or Other Public Service Enterprise Funds: One or more utility or other public service enterprise funds into which shall be paid al; money derived from the sale of bonds issued on account of any municipally owned utility or enterprise and all money derived from the sale of utility or other public enterprise services and from the sale of any property acquired for or used in connection with any such utility or enterprise. There shall be paid out of this fund the cost of the purchase, construction, operation, maintenance and repair of such utility or enterprise, including the principal of and interest upon obligation which have been or shall be issued on its account. Separate funds shall be kept for all utilities or public service enterprises which are operated separately. NOTE: The present language does not require revenues of utilities and enterprises to be paid to an appropriate fund. Sub. 4. Trust and Agency Funds: One or more trust and agency funds for the care and disbursement of money. received. and held. by the City as trustee or custodian or in the capacity of an agent for individuals or other governmental units. Sub. 5. Discretionary Fund. A Discretionary Fund is established for payment of reasonable and necessary expenses, not otherwise payable by the City, incurred by the Mayor and Council Members for the benefit of the City and its people. Appropriations to and expenditures from this fund shall not exceed $500 per year. The Council may by resolution establish the purposes .and procedures for the making of disbursements from this fund, but disbursements made without previous Council authorization. shall be subject to audit and allowance by the Council. (Amended Bill 1968-16, Bill 1990-13) NOTE: It is probably not a good idea to include a dollar figure for this fund. $500 in 2010 is a good deal different than $500 in 1990. It is possible to set a figure with a cost of living adjustment, but that seems unnecessary for such a small item that most city councils pclice with great attention. Sub. 6. In addition to the foregoing funds, there may be maintained in the City treasury, whenever the Council deems it advisable; (1 } one or more working capital or revolving funds, for financing self-sustaining activities not accounted for through other funds; and (2} such other funds as may be required by statute or ordinance. Sub. 7. The Council may make interfund loans by resolution where permitted by law except from Trust and Agency funds. NOTE: No changes made in Sub. 7. Section 7.13. Accounts and Reports.. The accounts of the City shall be maintained on an accrual or modified accrual basis in accordance with generally accepted governmental accounting standards and procedures. The City Manager shall submit such reports as will be necessary in order to keep the Council fully informed of the financial condition of the City. Once each year on or before the 30th day of June, the City .Manager shall submit a complete financial report of the .City for the preceding fiscal year ending December 31, a summary of which shall be published in the official newspaper. The City Manager, under the direction of the Council, on or before June 30 of each year, shall prepare at least one comprehensive public information report ofthe financial affairs of the City. Said report shall be an informative type, and shall be distributed Citywide. (Amended, Biil No. 2002-2} ne 30 nsive auauc m n ete financial report of anaaer. u NOTE: This section was recently amended to extend the date of the Manager's report. But what happens if for whatever reason the City's auditors don't complete their work by that date? Would it be better to leave the date of reporting -and publication to the Manager? What is the difference between "a complete financial report" and a "comprehensive public information report"? Are two reports necessary? if one is published is the further distribution required by the last sentence necessary? Section 7.14. City Indebtedness. Except as provided in Sections 7.15 and 7.16, no obligations shall be issued to pay current expenses, but the Council may issue and sell obligations for any other municipal purpose in accordance with law and within the limitations prescribed by law. Except in the case of obligations for which an election is not required by this Charter or by state law, no such obligations shall be issued .and sold without the approval of the majority of the registered voters of the City voting on the question at a general or special election. Before submitting a question to the voters under this Section, the Council must conduct at least one public hearing on the question preceded by notice published in a newspaper(s) selected by the Council not more than 28 days nor less than 14 days prior to the hearing. (Amended Bill No. 1993-7 Hess. Council may issue and sell obliaations for anv other municipal purpose in accordance with law and within the limitations prescribed by law. Except in not be n at a pen Section. the Council must conduct at least one public hearina on the auestion NOTE:. The public hearing requirement of the last sentence is rare in charters if not unique. In the normal case, there is extensive public discussion and input to the Council before such an election. There is no similar requirement in state law. Section 7.15. Tax Anticipation Certificates. At any time after January 1, following the making of an annual tax levy, the Council may issue certificates of indebtedness in anticipation of the collection of taxes levied for any fund and not yet collected. The total amount of certificates issued against any fund for any year with interest thereon until maturity shall not exceed 90% of the total current taxes for the fund uncollected. at the time of issuance. Such certificates shall be issued on such terms and conditions as the Council may determine but they-shall become due and payable not later than the first day of April of the year following their issuance. The proceeds of the tax levied for the fund against which tax anticipation certificates are issued and the full faith and credit of the City shall be irrevocably pledged for the redemption of the certificates in the order of their issuance against the fund. ~~ Section 7.15. Tax Anticipation Certificates. At anv timE 1. followina the making of an annual tax levy. the Coun a Cates exceed 90% of the total current taxes for the fund uncollected at the time of n su not the first day of April of the vear following their issuance. I ne proceeds of the tax levied for the fund aaainst which tax anticipation certitcates are issued and the full faith and credit of the City-must be irrevocably pled redemption of the certificates in the order of their issuance against Section 7.16. Emergency Debt Certificates. If in any year the receipts from taxes or other sources should from some unforeseen cause become insufficient for the ordinary expenses of the City, or if any calamity or other public emergency should subject the City to the necessity of making extraordinary expenditures, the Council may by resolution issue and sell on such terms and in such manner as the Council determines emergency debt certificates to run not to exceed two years. A tax sufficient to pay principal and interest on such certificates with. the margin required by law shall be levied as required by law. The resolution authorizing an issue of such emergency debt certificates shall state the nature of the emergency and be approved by a majority of the Council. Section 7.16. Emeraencv Debt Certificates. If in anv vear the receipts from taxes or other sources should from some unforeseen cause become insufficient for the ordinary expenses of the City. or if any calamity or other extraordinary expenditures the Council may by resolution issue and sell on such terms and in such manner as the Council determines emergency debt to uti a NOTE: This section. duplicates existing law in Minnesota Statutes, Section 475.754,: except. for (i) the two year maturity; and (ii) the fact that certificates issued under the Charter are within the City's debt limit. There is no harm in leaving the section (as revised) but it could be removed without doing violence to the Charter. NEW SECTION 7.17. NOTE: This section recognizes that the budget adoption and tax levying procedures in the Charter must conform to the State "truth in taxation laws" if these laws are repealed, the Charter procedure at sections 7.05 through 7.07 would control. Charter Commission City of Rich, fieicii Minnesota ,~ 6700 Portland Avenue South Richfield, Minnesota 55423 September 21, 2003 The Honorable Martin J. Kirsch Members of the City Council City of Richfield 6700 Portland Avenue South Richfield, Minnesota 55423 Dear Mayor Kirsch and Members of the City Council: The Charter Commission of the City of Richfield presents to you a set of proposed amendments to the City Charter. Proposed ordinances containing the amendments accompany this letter. These proposed amendments are the product of a long, detailed process of reflection and discussion on the part of the Charter Commission. At a meeting held Wednesday, 13 August 2003, the Commission formally discussed and voted approval of each proposed amendment. All but two of the proposed changes to the Charter were unanimously adopted. The results of the vote on each proposed amendment may be of interest to the Council. Those votes are reported for you on the attached table. We forward these proposed changes to you with the recommendation that you consider and adopt them. I wish to publicly register my thanks to and appreciation for the members of the Charter Commission. They have acted with patience and deliberation through long months. At all times, the members of the Commission demonstrated a willingness to listen to opposing points of view, to think carefully about issues, and to work toward consensus. These fellow citizens of yours are a credit to the Richfield community. I also want to thank Ms. Corrine Thomson, the City Attorney. At every turn she provided sound counsel and did the necessary work of preparing the ordinances, in multiple drafts, which you now have in final form. As always, I am happy to assist you in any way and to respond to questions you might have. Cordially, ohn L. Easterwood President Charter Commission City of Richfield 612-869-0509(H) 952-820-2671(VV) captinCcDatt.net ORDINANCE RECOMMENDED CHARACTER OF THE VOTE AN ORDINANCE RELATING TO CITY GOVERNMENT; AMENDING SECTIONS 3.05, 4.07 AND 6.02 OF THE Approved Unanimously RICHFIELD CITY CHARTER 11-Yes 0- No AN ORDINANCE RELATING TO CITY GOVERNMENT; MODIFYING AND CLARIFYING PROCEDURES FOR INITIATIVE, REFERENDUM AND RECALL; ESTABLISHING PENALTIES FOR SPECIFIED ELECTION MISCONDUCT; Approved AMENDING SECTIONS 5.01, 5.02, 5.04, 5.05, 5.06, 5.07, 5.08, 11-Yes 1- No 5.11, 5.12, 5.14, 5.15, 5.16, 5.17, 5.18, 5.19, AND 5.20 OF THE RICHFIELD CITY CHARTER; ADDING A NEW SECTION 5.22 TO THE RICHFIELD CITY CHARTER AN ORDINANCE RELATING TO CITY GOVERNMENT; Approved Unanimously AMENDING SECTIONS 2.03 AND 3.01 OF THE RICHFIELD 11-Yes 0-No CITY CHARTER AN ORDINANCE RELATING TO CITY GOVERNMENT; REPEALING SECTIONS 8.04 AND 8.05 OF THE RICHFIELD Approved CITY CHARTER; RELATING TO REQUIREMENTS FOR 10-Yes 1-Abstain ~` CERTAIN CAPITAL IMPROVEMENT PROJECTS AN ORDINANCE RELATING TO CITY GOVERNMENT; AMENDING SECTION 6.01 OF THE RICHFIELD CITY Approved Unanimously CHARTER; REMOVING RESIDENCY REQUIREMENT FOR 11-Yes 0- No CITY MANAGER AN ORDINANCE RELATING TO CITY GOVERNMENT; MODIFYING AND CLARIFYING FINANCIAL AND BUDGETING PROCEDURES; AMENDING SECTIONS 7.01, 7.02, 7.03, 7.05, Approved Unanimously 7.06, 7.07, 7.08, 7.09, 7.10, 7.11, 7.12, 7.13, 7.14, 7.15 AND 11-Yes 0- No 7.16 OF THE RICHFIELD CITY CHARTER; REPEALING SECTION 7.04 FROM THE RICHFIELD CITY CHARTER; ADDING A NEW SECTION 7.17 ~~ AGENDA SECTION: Consent AGENDA ITEM # 7E REPORT # 223 J STAFF REPORT CITY COUNCIL MEETING OCTOBER 14, 2003 REPORT PREPARED BY: CORRINE H. THOMSON, CITY ATTORNEY NAME, TITLE COUNCIL PRESENTER: ITEM FOR COUNCIL CONSIDERATION: First reading of an ordinance amending Section 6.01 of the City Charter, removing the residency requirement for the City Manager. RECOMMENDED ACTION: By Motion: Approve first reading of the attached ordinance amending the Richfield City Charter, Section 6.01, to come into compliance with State law by removing the residency requirement for the City Manager, and schedule a public hearing and second reading for November 12, 2003 The Richfield Charter Commission has discussed, reviewed, and proposed amendments to several sections of the Richfield City Charter. By unanimous motion, the Charter Commission has proposed that Section 6.01 of the City Charter be amended to eliminate the residency requirement for the City Manager. The Charter Commission approved the attached ordinance and voted 11-0 to submit the attached ordinance to the City Council for approval The public hearing and second reading. are scheduled for November 12, 2003. III. BASIS OF RECOMMENDATION A. POLICY • Minnesota Statutes, Section 415.16 provides that, notwithstanding any charter or ordinance provision to he contrary, a city may not require. a person to reside in the city as a condition of employment (with the exception of positions which, by the nature of their duties, require the person to reside at their place of employment). The residency 1014charteramending6.01 requirement in Section 6.01 is superseded by State law and is ineffective. • The Charter Commission felt that retaining the residency requirement in Section 6.01 could cause confusion by residents who are not aware of the provisions of Section 415.16. • Opponents of residency requirements assert that residency requirements restrict the field of qualified candidates for a position, particularly in today's society, where both spouses in a family often work in different cities, and where non-custodial parent employees may want to maintain residency near their children. It can also place an economic burden on individuals regarding the purchase/sale of existing homes. • Proponents of residency requirements assert that residency promotes greater responsiveness and commitment from employees while opponents contend that residency can result in actions that may not be as objective as desired. B. CRITICAL ISSUES • The residency requirement in Section 6.01 is superseded by State law, is not effective, and presents the opportunity for public misunderstanding as to whether the City is complying or not complying with its charter. • If Section 6.01 is not amended, the City's residency requirement would be reinstated without further amendment of the City Charter, if the State law were ever repealed. C. FINANCIAL • N/A D. LEGAL • The amendment would render the City Charter in compliance with State law. • Without the amendment, the current City Charter provision is superseded and ineffective. IV. ALTERNATIVE RECOMMENDATION(S) ~ • The Council may modify the amendment as proposed. The Charter Commission must approve any modification to the ordinance, and the Council must approve the modified ordinance unanimously in order for the Charter amendment to be effective. • The Council may reject the proposed amendment. The Charter Commission would have the option, but not the obligation, to require that the proposed amendment be submitted to the voters at the next election. V. ATTACHMENTS • Ordinance. • Letter and Charter vote from Easterwood. VL PRINCIPAL PARTIES EXPECTED AT MEETING • John Easterwood, Charter Gommission President. BILL NO. ~` AN ORDINANCE RELATING TO CITY GOVERNMENT; - AMENDING SECTION 6.01 OF THE RICHFIELD CITY CHARTER; REMOVING RESIDENCY REQUIREMENT FOR CITY MANAGER THE CITY OF RICHFIELD DOES ORDAIN: Section 1. Background: findings; authority. 1.01. The City of Richfield (City) is governed by home rule charter adopted pursuant to the Constitution of the State of Minnesota and Minnesota Statutes, Chapter 410 (Act). 1.02. The Charter Commission of the City has proposed the adoption of an Amendment to remove the residency requirement for the city manager and has recommended to the City Council that the Amendment be adopted by City Council ordinance in the manner prescribed by Section 410.12, Subdivision 7, of the Act. The form of the Amendment is set out in Section 2.02. 1.03. A public hearing on the Amendment was held on by the City Council after two weeks' published notice containing the text of the Amendment as required by the Act. The notice contained a brief description of the nature and scope of the Amendment. All persons desiring to be heard with reference to the Amendment were heard at the public hearing. 1.04. The Council finds and determines that it is in the best interests of the City and its inhabitants that the Amendment be adopted. Section. 2 Adoption; effective date; filing. 2.01. The Amendment as proposed by the Charter Commission is adopted. 2.02. Section 6.01 of the Richfield City Charter is amended to read as follows: Section 6.01. The City Manager. The City Manager shall be the chief executive and head of the administrative branch of the City government and shall be chosen by the Council solely on the basis of training, experience, and administrative qualifications. ~n~"~wtit#~-~- The City Manager shall be appointed for an indefinite period and may be removed by the Council at any time; but after serving as Manager for one year, the manager may demand written charges and a public hearing before the date of final removal takes effect. Written charges, if demanded, shall be furnished a reasonable time before the pubic hearing.. After. such hearing, if one is demanded, the Council shall have unlimited discretion either to reinstate. the Manager or make removal final. Pending such hearing and removal, the Council :may suspend the manager from office. The Council may designate some properly qualified person to perform the duties of the Manager during the Manager's absence, disability, suspension, or while the office of the Manager is vacant. 2.03. This ordinance is effective ninety (90) days after its publication, except that if within sixty (60) days after publication a petition requesting a referendum on this ordinance, --' signed by the number of registered voters of the City required by the Act is filed with the City Clerk, this ordinance will not be effective until approved by 51 % of the voters voting on the question of its adoption at the special election called by the Council for that purpose. 2.04. On the effective date of the Amendment, the City Clerk is authorized and directed to file copies of the Amendment with the Secretary of State of the State of Minnesota, the ~ Hennepin County Recorder, and the City Clerk's office together with the certificate required by Section 410.11 of the Act. Passed by the City Council of the City of Richfield, Minnesota this day of 2003. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk --~ Charter Commission City of Richfield; Minnesota ~ 6700 Portland Avenue South _, Richfield, Minnesota 55423 September 21, 2003 The Honorable Martin J. Kirsch Members of the City Council City of Richfield 6700 Portland Avenue South Richfield, Minnesota 55423 Dear Mayor Kirsch and Members of the City Council: i _L ~- ->~.~- ~~_~' The Charter Commission of the City of Richfield presents to you a set of proposed amendments to the City Charter. Proposed ordinances containing the amendments accompany this letter. These proposed amendments are the product of a long, detailed process of reflection and discussion on the part of the Charter Commission. At a meeting held Wednesday, 13 August 2003, the Commission formally discussed and voted approval of each proposed amendment. All but two of the proposed changes to the Charter were unanimously adopted. The results of the vote on each proposed amendment may be of interest to the Council. Those votes are reported for you on the attached table. We forvvard these proposed changes to you with the recommendation that you consider and adopt them. I wish to publicly register my thanks to and appreciation for the members of the Charter Commission. They have acted with patience and deliberation through long months. At all times, the members of the Commission demonstrated a willingness to listen to opposing points of view, to think carefully about issues, and to work toward consensus. These fellow citizens of yours are a credit to the Richfield community. I also want to thank Ms. Corrine Thomson, the City Attorney. At every turn she provided sound counsel and did the necessary work of preparing the ordinances, in multiple drafts, which you now have in final form. As always, I am happy to assist you in any way and to respond to questions you might have. Cordially, ~~ ohn L. Easterwood President Charter Commission City of Richfield 612-869-0509(H) 952-820-2671(VV) cagtinCa)_att.net ORDINANCE RECOMMENDED CHARACTER OF THE VOTE AN ORDINANCE RELATING TO CITY GOVERNMENT; AMENDING SECTIONS 3.05, 4.07 AND 6.02 OF THE Approved Unanimously RICHFIELD CITY CHARTER 11-Yes 0- No AN ORDINANCE RELATING TO CITY GOVERNMENT; MODIFYING AND CLARIFYING PROCEDURES FOR INITIATIVE, REFERENDUM AND RECALL; ESTABLISHING PENALTIES FOR SPECIFIED ELECTION MISCONDUCT; Approved AMENDING SECTIONS 5.01, 5.02, 5.04, 5.05, 5.06, 5.07, 5.08, 11-Yes 1- No 5.11, 5.12, 5.14, 5.15, 5.16, 5.17, 5.18, 5.19, AND 5.20 OF THE RICHFIELD CITY CHARTER; ADDING A NEW SECTION 5.22 TO THE RICHFIELD CITY CHARTER AN ORDINANCE RELATING TO CITY GOVERNMENT; Approved Unanimously AMENDING SECTIONS 2.03 AND 3.01 OF THE RICHFIELD 11-Yes 0-No CITY CHARTER AN ORDINANCE RELATING TO CITY GOVERNMENT; REPEALING SECTIONS 8.04 AND 8.05 OF THE RICHFIELD Approved CITY CHARTER; RELATING TO REQUIREMENTS FOR 10-Yes 1-Abstain `~ CERTAIN CAPITAL IMPROVEMENT PROJECTS AN ORDINANCE RELATING TO CITY GOVERNMENT; AMENDING SECTION 6.01 OF THE. RICHFIELD CITY Approved Unanimously CHARTER; REMOVING RESIDENCY REQUIREMENT FOR 11-Yes 0- No CITY MANAGER AN ORDINANCE RELATING TO CITY GOVERNMENT; MODIFYING AND CLARIFYING FINANCIAL AND BUDGETING PROCEDURES; AMENDING SECTIONS 7.01, 7.02, 7.03, 7.05, Approved Unanimously 7.06, 7.07, 7.08, 7.09, 7.10, 7.11, 7.12, 7.13, 7.14, 7.15 AND 11-Yes 0- No 7.16 OF THE RICHFIELD CITY CHARTER; REPEALING SECTION 7.04 FROM THE RICHFIELD CITY CHARTER; ADDING A NEW SECTION 7.17 AGENDA SECTION: Consent AGENDA ITEM # 7D REPORT # 222 J STAFF REPORT CITY COUNCIL MEETING OCTOBER 14, 2003 REPORT PREPARED BY: CORRINE H. THOMSON, CITY ATTORNEY NAME, TITLE COUNCIL PRESENTER: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of first reading of an ordinance repealing Sections 8.04 and 8.05 of the Richfield City Charter. I. RECOMMENDED ACTION: By Motion: Approve first reading of ordinance repealing Sections 8.04 and 8.05 of the Richfield City Charter and schedule public hearing and second reading for November 12, 2003. III. BACKGROUND The Richfield Charter Commission had discussed, reviewed and proposed amendments to several sections of the Richfield City Charter. The attached ordinance repeals Sections 8.04 and 8.05 of the Charter. The commission initiated the discussion regarding Sections 8.04 and 8.05. Those sections require that public improvements on City property must be approved by ordinance before the projects can proceed, if the estimated cost of the improvement exceeds $500,000 or if the estimated design costs exceed $75,000. Members expressed different reasons for repealing those provisions. The stated reasons included: (1) that Sections 8.04 and 8.05 had been enacted in reaction to a ~ particular project that generated. community dissent, and that the election process should have been used to address perceived errors in government, rather than amending the governing charter for the City; (2) that Sections 8.04 and 8.05 had created some confusion as to when hearings on proposed improvements must be 1014Charter 8.04 and 8.05 held, and that the Charter Commission had been unable through previous discussions to agree upon any means of clarifying the language in those sections; ~~'~ (3) that the 1998 imposed, $75,000 limit was unreasonably low, in that the City would need to incur more than that amount in design fees in order to come up with plans that provided adequate information for the public to evaluate a proposed improvement; and (4) that there is already a public process for approval of a capital improvement program and budget, and the provisions of Sections 8.04 and 8.05 add an additional and unnecessary process. The Charter Commission approved the attached ordinance and voted 10-0, with one abstention, to submit the attached ordinance to the City Council for approval. The public hearing and second reading are scheduled for November 12, 2003. III. BASIS OF RECOMMENDATION A. POLICY • Any proposal to construct a public improvement covered by Sections 8.04 and 8.05 of the City Charter must also be approved as part of the City's capital improvement program and budget. The hearings required under Sections 8.04 and 8.05 have been conducted simultaneously with the CIP/CIB approval process, which makes the value of the additional notice questionable. • The process required under Sections 8.04 and 8.05 has been criticized as requiring a public hearing to consider a potential improvement, but preventing the expenditure of sufficient design funds to allow detailed information to presented to the public at the hearing. • The City staff has adapted to the requirements under Sections 8.04 and 8.05 and has not experienced operational difficulties in complying with those requirements. B. CRITICAL ISSUES • The Council needs to determine whether Sections 8.04 and 8.05 contribute in a meaningful way toward providing better or more information to the public about potential public improvements. C. FINANCIAL • The proposed change makes it possible for the City to avoid the costs of certain hearing notices. • The elimination of the notice and hearing requirements under Section 8.04 and 8.05 might, in some situations, allow the City to make decisions more quickly about public improvements and take advantage of favorable market conditions. • If first reading. is approved by the City Council, this matter will be set for a public hearing. State law requires that the entire text of the ~~ ordinance be published in twice in the newspaper in advance of that hearing. On second reading, the ordinance must have unanimous approval in order to be adopted. Before the City Council directs the second reading and incurs the publication costs, the City Council may want to consider the likelihood of obtaining unanimous approval upon second reading. D. LEGAL • The Council must approve the ordinance unanimously in order for the ordinance to be effective. • The requirement In Section 8.04 that the City Council approve certain projects by ordinance may have been imposed with the understanding that the ordinance would then be subject to referendum. The referendum process may not be used to challenge administrative decisions, even when those are made by ordinance, and it is unlikely that any ordinance under Section 8.04 would be the proper subject of referendum. IV. ALTERNATIVE RECOMMENDATION(S~ • The Council may modify the amendment as proposed. The Charter Commission must approve any modification to-the ordinance, and the Council must approve the modified ordinance unanimously in order for the Charter amendment to be effective. The Council may reject the proposed amendment. Anything less than unanimous approval of the proposed amendment effectively operates as a rejection of the amendment. The Charter Commission would have the option, but not the obligation, to require that the proposed amendment be submitted to the voters at the next election. V. ATTACHMENTS • Ordinance Letter and Charter vote from Easterwood VI. PRINCIPAL PARTIES EXPECTED AT MEETING • John Easterwood, Charter Commission President BILL NO. ~, AN ORDINANCE RELATING TO CITY GOVERNMENT; -- REPEALING SECTIONS 8.04 AND 8.05 OF THE RICHFIELD CITY CHARTER; RELATING TO REQUIREMENTS FOR CERTAIN CAPITAL IMPROVEMENT PROJECTS THE CITY OF RICHFIELD DOES ORDAIN: Section 1. Backaround: findinas: authority. 1.01. The City of Richfield (City) is governed by home rule charter adopted pursuant to the Constitution of the State of Minnesota and Minnesota Statutes, Chapter 410 (Act). 1.02. The Charter Commission of the City has proposed the adoption of an Amendment to repeal Sections 8.04 and 8.05 of the charter and has recommended to the City Council that the Amendment be adopted by City Council ordinance in the manner prescribed by Section 410.12, Subdivision 7, of the Act. 1.03. A public hearing on the Amendment was held on by the City Council after two weeks' published notice containing the text of the Amendment as required by the Act. The notice contained a brief description of the nature and scope of the Amendment. All persons desiring to be heard with reference to the Amendment were heard at the public hearing. 1.04. The Council finds and determines that it is in the best interests of the City and its inhabitants that the Amendment be adopted. Section. 2 Adoption; effective date; filin 2.01. The Amendment as proposed by the Charter Commission is adopted 2.02 Chapter 8 of the Richfield City Charter is amended by repealing Sections 8.04 and 8.05 of that chapter. 2.03. This ordinance is effective ninety (90} days after its publication, except that if within sixty (60) days after publication a petition requesting a referendum on this ordinance, signed by the number of registered voters of the City required by the Act is filed with the City Clerk, this ordinance will not be effective until approved by 51 % of the voters voting on the question of its adoption at the special election called by the Council for that purpose. 2.04. On the effective date of the Amendment, the City Clerk is authorized and directed to file copies of the Amendment with the Secretary of State of the State of Minnesota, the Hennepin County Recorder, and the City Clerk's office together with the certificate required by Section 410.11 of the Act. Passed by the City Council of the City of Richfield, Minnesota this day of 2003. Martin J. Kirsch, Mayor ATTEST: ancy i s, ity er Charter Commission City of Richfield ~nnesota n 6700 Portland Avenue South ' _ Richfield Minnesota 55423 September 21, 2003 The Honorable Martin J. Kirsch Members of the City Council City of Richfield 6700 Portland Avenue South Richfield, Minnesota 55423 Dear Mayor Kirsch and Members of the City Council: ...r ~~ f 1 ~ ~ _~._~.:~.~ I The Charter Commission of the City of Richfield presents to you a set of proposed amendments to the City Charter. Proposed ordinances containing the amendments accompany this letter. These proposed amendments are the product of a long, detailed process of reflection and discussion on the part of the Charter Commission. At a meeting held Wednesday, 13 August 2003, the Commission formally discussed and voted approval of each proposed amendment. All but two of the proposed changes to the Charter were unanimously adopted. The results of the vote on each proposed amendment may be of interest to the Council. Those votes are reported for you on the attached table. We forward these proposed changes to you with the recommendation that you consider and adopt them. I wish to publicly register my thanks to and appreciation for the members of the Charter Commission. They have acted with patience and deliberation through long months. At all times, the members of the Commission demonstrated a willingness to listen to opposing points of view, to think carefully about issues, and to work toward consensus. These fellow citizens of yours are a credit to the Richfield community. I also want to thank Ms. Corrine Thomson, the City Attorney. At every turn she provided sound counsel and did the necessary work of preparing the ordinances, in multiple drafts, which you now have in final form. As always, I am happy to assist you in any way and to respond to questions you might have. Cordially, ohn L. Easterwood President Charter Commission City of Richfield 612-869-0509(H) 952-820-2671(VV) -" captin(c~att.net ORDINANCE RECOMMENDED CHARACTER OF THE VOTE AN ORDINANCE RELATING TO CITY GOVERNMENT; AMENDING SECTIONS 3.05, 4.07 AND 6.02 OF THE Approved Unanimously RICHFIELD CITY CHARTER 11-Yes 0- No AN ORDINANCE RELATING TO CITY GOVERNMENT; MODIFYING AND CLARIFYING PROCEDURES FOR INITIATIVE, REFERENDUM AND RECALL; ESTABLISHING PENALTIES FOR SPECIFIED ELECTION MISCONDUCT; Approved AMENDING SECTIONS 5.01, 5.02, 5.04, 5.05, 5.06, 5.07, 5.08, 11-Yes 1- No 5.11, 5.12, 5.14, 5.15, 5.16, 5.17, 5.18, 5.19, AND 5.20 OF THE RICHFIELD CITY CHARTER; ADDING A NEW SECTION 5.22 TO THE RICHFIELD CITY CHARTER AN ORDINANCE RELATING TO CITY GOVERNMENT; Approved Unanimously AMENDING SECTIONS 2.03 AND 3.01 OF THE RICHFIELD 11-Yes 0-No CITY CHARTER AN ORDINANCE RELATING TO CITY GOVERNMENT; REPEALING SECTIONS 8.04 AND 8.05 OF THE RICHFIELD Approved CITY CHARTER; RELATING TO REQUIREMENTS FOR 10-Yes 1-Abstain ~l CERTAIN CAPITAL IMPROVEMENT PROJECTS AN ORDINANCE RELATING TO CITY GOVERNMENT; AMENDING SECTION 6.01 OF THE RICHFIELD CITY Approved Unanimously CHARTER; REMOVING RESIDENCY REQUIREMENT FOR- 11-Yes 0- No CITY MANAGER AN ORDINANCE RELATING TO CITY GOVERNMENT; MODIFYING AND CLARIFYING FINANCIAL AND BUDGETING PROCEDURES; AMENDING SECTIONS 7.01, 7.02, 7.03, 7.05, Approved Unanimously 7.06, 7.07, 7.08, 7.09, 7.10, 7.11, 7.12, 7.13, 7.14, 7.15 AND 11-Yes 0- No 7.16 OF THE RICHFIELD CITY CHARTER; REPEALING SECTION 7.04 FROM THE RICHFIELD CITY CHARTER; ADDING A NEW SECTION 7.17 AGENDA SECTION: AGENDA ITEM # REPORT # STAFF REPORT CITY COUNCIL MEETING OCTOBER 14, 2003 Consent 7C 221 REPORT PREPARED BY: CORRINE H. THOMSON, CITY ATTORNEY NAnfc, Tircc COUNCIL PRESENTER: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: First reading of an ordinance amending Sections 2.03 and 3.01 of the Richfield City Charter. I. RECOMMENDED ACTION: By Motion: Approve first reading of the attached ordinance amending Sections 2.03 and 3.01 of the Richfield City Charter and schedule the ublic hearing. and second reading for November 12, 2003. III. BACKGROUND The Richfield Charter Commission had discussed, reviewed and proposed amendments to several sections of the Richfield City Charter. The attached ordinance amends Sections 2.03 and 3.01. City staff first proposed amending Section 3.01 to eliminate the requirement that the City Council meet on the first business day in January following each municipal election, in order to avoid calling a special meeting solely for the purpose of swearing in new Council Members. That change prompted a revision of Section 2.03, to ensure that there was no lapse in any office following an election. The City Attorney also recommended a change to Section 3.01 to conform the City Charter to the Minnesota Open Meeting Law.. Other grammatical changes are also recommended. Under the proposed amendment, new Council Members would take office at the first regular or special meeting of the City Council in January following the election, 1014charter2.03and3.01 and departing Council Members serve until their successors are elected and qualified. The Charter Commission approved the attached ordinance and voted 11-0 to submit the attached ordinance to the City Council for approval. The public hearing and second reading are scheduled for November 12, 2003. III. BASIS OF RECOMMENDATION A. POLICY • The current Charter language effectively requires the City Council to hold a special meeting on the first business day in January following every regular election, solely for the purpose of swearing in Council Members. • Special meetings involve additional costs to the City, in terms of staff time, utility costs and cost of notices. • The City start has been seeking ways to avoid unnecessary costs. • The change in the Charter language does not prevent the City Council from calling a special meeting to swear in new Council Members, if the City Council wishes to do so. • The proposed amendment includes grammatical changes intended to make the Charter more clear and easier to understand. B. CRITICAL ISSUES • The current Charter language requires a mandatory special meeting in January after an election so that new Council Members can be sworn, while the proposed language would allow the City Council to call a special meeting or to wait until the next regular meeting of the City Council • The amendment to Section 3.01 regarding public meetings conforms the Charter to the Minnesota Open Meeting Law, which requires certain meetings to be closed to the public. C. FINANCIAL • The proposed change makes it possible for the City to avoid the. costs of a special meeting, if a special meeting is not deemed necessary by the City Council. • If first reading is approved by the City Council, this matter will be set for a public hearing.. State law requires that the entire text of the ordinance be published in twice in the newspaper in advance of that hearing. On second reading, the ordinance must.have unanimous approval in order to be adopted. Before the City Council directs the second reading and incurs the publication costs, the. City Council may want to consider the likelihood of obtaining: unarrimous approval upon second reading. D. LEGAL ~~ • The amendment would conform the City Charter to the Minnesota Open Meeting Law. • The Council must approve the ordinance unanimously in order for the ordinance to be effective. IV. ALTERNATIVE RECOMMENDATION~S~ • The Council may modify the amendment as proposed. The Charter Commission must approve any modification to the ordinance, and the Council must approve the modified ordinance unanimously in order for the Charter amendment to be effective. The Council may reject the proposed amendment. Anything less than unanimous approval of the proposed amendment effectively operates as a rejection of the amendment. The Charter Commission would have the option, but not the obligation, to require that the proposed amendment be submitted to the voters at the next election. V. ATTACHMENTS • Ordinance • Letter and Charter vote from Easterwood VI. PRINCIPAL PARTIES EXPECTED AT MEETING • John Easterwood, Charter Commission President BILL NO. AN ORDINANCE RELATING TO CITY GOVERNMENT; AMENDING SECTIONS 2.03 AND 3.01 OF THE RICHFIELD CITY CHARTER THE CITY OF RICHFIELD DOES ORDAIN: Section 1. Background; findings; authority. 1.01. The City of Richfield (City) is governed by home rule charter adopted pursuant to the Constitution of the State of Minnesota and Minnesota Statutes, Chapter 410 (Act). 1.02. The Charter Commission of the City has proposed the adoption of an Amendment to change council meeting requirements and clarify provisions regarding council member terms of office and has recommended to the City Council that the Amendment be adopted by City Council ordinance in the manner prescribed by Section 410.12, Subdivision 7, of the Act. The form of the Amendment is set out in Section 2.02. 1.03. A public hearing on the Amendment was held on by the City Council after two weeks' published notice containing the text of the Amendment as required by the Act. The notice contained a brief description of the nature and scope of the Amendment. All persons desiring to be heard with reference to the Amendment were heard at the public hearing. 1.04. The Council finds and determines that it is in the best interests of the City and its inhabitants that the Amendment be adopted. Section. 2 Adoption; effective date; filing, 2.01. The Amendment as proposed by the Charter Commission is adopted. 2.02. Section 2.03. of the Richfield City Charter is amended to read as follows: Section 2.03. Elective Officers. The Council a is composed of a Mayor and four Council Members, all of whom s#at4 must be registered voters. The offices of Mayor and at-large Council Member ell must be filled by election at large. The offices of the three district Council Members elf must be elected from apportioned Council districts in which they reside. The Mayor and the Council Members shall each be elected to a four-year term with Mayor and. the Council Member at-large in 1994 and each succeeding four years and the district Council Members elected in 1992 and each succeeding four years. The. regular term of an office commences e~ at the first regular or special council. meeting in January ~- next following the general election at which balloting for the full term of office occurs, and office candidate for the office of districf Council Member must reside while seeking election and while serving in office within the district from which he or she is elected. Within two years after each United States Census the City Council. shall by ordinance. establish compact and contiguous districts to be apportioned by population as nearly equal as practicable. The three Districts shall be Eastern, Central and Western Richfield with dividing lines generally north and south. 2.03 Section 3.01 of the Richfield City Charter is amended to read as follows: Section 3.01. Council M~e1 eti1n_gs. /~ ~ Ty~~A\A/11'1 /Y /1 Y~M11~~]Y W111Y11/~IY1/] pyl~L~T'^1- p11pCJLf~h~~ ~~ r~l.,~~~~1~irr° f°r ~h° h°li-7~a eF~V^~~6~~~.etttia~+. Y'tt tl'FI~ +~~C'tY~.irte7v-r~ Newly elected members of the Council will assume their duties at the municipal election. Thereafter, the Council sl~at4 will meet at ~# the times each month as established by ordinance or resolution. The Mayor or any two members of the Council may call special meetings of the Council upon at least twelve hours notice to each member of the Council. The notice s must be delivered personally to each member or be left at the Member's usual place of residence with some responsible person. Meetings of the Council a are public, except as otherwise permitted or required by law. a~-~slt+~ea~^" "^~~° ^^~ to~ ,A~n r person may inspect the minutes and records +h~ of the meetings at afl reasonable times. 2.04. This ordinance is effective ninety (90) days after its publication, except that if within sixty (60) days after publication a petition requesting a referendum on this ordinance, signed by the number of registered voters of the City required by the Act is filed with the City Clerk, this ordinance will not be effective until approved by 51 % of the voters voting on the question of its adoption at the special election called by the Council for that purpose. 2.05. On the effective date of the Amendment, the City Clerk is authorized and directed to file copies of the Amendment with the Secretary of State of the State of Minnesota, the Hennepin County Recorder, and the City Clerk's office together with the certificate required by Section 410.11 of the Act. Passed by the City Council of the City of Richfield, Minnesota this day of .2003. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk Charter Commission City of Richfielc>~ ll~innesota 6700 Portland AUenue South Rich, f~elcly Minnesota 55423 September 21, 2003 The Honorable Martin J. Kirsch Members of the City Council City of Richfield 6700 Portland Avenue South Richfield, Minnesota 55423 Dear Mayor Kirsch and Members of the City Council: The Charter Commission of the City of Richfield presents to you a set of proposed amendments to the City Charter. Proposed ordinances containing the amendments accompany this letter. These proposed amendments are the product of a long, detailed process of reflection and discussion on the part of the Charter Commission. At a meeting held Wednesday, 13 August 2003, the Commission formally discussed and voted approval of each proposed amendment. All but two of the proposed changes to the Charter were unanimously adopted. The results of the vote on each proposed amendment may be of interest to the Council. Those votes are reported for you on the attached table. We forward these proposed changes to you with the recommendation that you consider and adopt them. I wish to publicly register my thanks to and appreciation for the members of the Charter Commission. They have acted with patience and deliberation through long months. At all times, the members of the Commission demonstrated a willingness to listen to opposing points of view, to think carefully about issues, and to work toward consensus. These fellow citizens of yours are a credit to the Richfield community. I also want to thank Ms. Corrine Thomson, the City Attorney. At every turn she provided sound counsel and did the necessary work of preparing the ordinances, in multiple drafts, which you now have in final form. As always, I am happy to assist you in any way and to respond to questions you might have. Cordially, ohn L. Easterwood President Charter Commission City of Richfield 612-869-0509(H) 952-820-2671(V1n -~ captin(a~att.net ORDINANCE RECOMMENDED CHARACTER OF THE VOTE AN ORDINANCE RELATING TO CITY GOVERNMENT; AMENDING SECTIONS 3.05, 4.07 AND 6.02 OF THE Approved Unanimously RICHFIELD CITY CHARTER 11-Yes 0- No AN ORDINANCE RELATING TO CITY GOVERNMENT; MODIFYING AND CLARIFYING PROCEDURES FOR INITIATIVE, REFERENDUM AND RECALL; ESTABLISHING PENALTIES FOR SPECIFIED ELECTION MISCONDUCT; Approved AMENDING SECTIONS 5.01, 5.02, 5.04, 5.05, 5.06, 5.07, 5.08, 11-Yes 1- No 5.11, 5.12, 5.14, 5.15, 5.16, 5.17, 5.18, 5.19, AND 5.20 OF THE RICHFIELD CITY CHARTER; ADDING A NEW SECTION 5.22 TO THE RICHFIELD CITY CHARTER AN ORDINANCE RELATING TO CITY GOVERNMENT; Approved Unanimously AMENDING SECTIONS 2.03 AND 3.01 OF THE RICHFIELD 11-Yes 0-No CITY CHARTER AN ORDINANCE RELATING TO CITY GOVERNMENT; REPEALING SECTIONS 8.04 AND 8.05 OF THE RICHFIELD Approved CITY CHARTER; RELATING TO REQUIREMENTS FOR 10-Yes 1-Abstain (~ CERTAIN CAPITAL IMPROVEMENT PROJECTS AN ORDINANCE RELATING TO CITY GOVERNMENT; AMENDING SECTION 6.01 OF THE RICHFIELD CITY Approved Unanimously CHARTER; REMOVING RESIDENCY REQUIREMENT FOR 11-Yes 0- No CITY MANAGER AN ORDINANCE RELATING TO CITY GOVERNMENT; MODIFYING AND CLARIFYING FINANCIAL AND BUDGETING PROCEDURES; AMENDING SECTIONS 7.01, 7.02, 7.03, 7.05, Approved Unanimously 7.06, 7.07, 7.08, 7.09, 7.10, 7.11, 7.12, 7.13, 7.14, 7.15 AND 11-Yes 0- No 7.16 OF THE RICHFIELD CITY CHARTER; REPEALING SECTION 7.04 FROM THE RICHFIELD CITY CHARTER; ADDING A NEW SECTION 7.17 AGENDA SECTION: Consent AGENDA ITEM # 7B REPORT # 22~ STAFF REPORT CITY COUNCIL MEETING OCTOBER 14, 2003 REPORT PREPARED BY: CORRINE H. THOMSON, CITY ATTORNEY NAME, T1TLG COUNCIL PRESENTER: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of first reading of an ordinance amending various sections in Chapter 5 of Richfield City Charter. I. RECOMMENDED ACTION: By Motion: Approve first reading of the attached ordinance amending various sections in Chapter 5 of the Richfield City Charter and schedule the public hearing and second reading for November 12, 2003. III. BACKGROUND The Richfield Charter Commission had discussed, reviewed and proposed amendments to several sections of the Richfield City Charter. The attached ordinance amends Sections 5.01,.5.02, 5.04, 5.05, 5.06, 5.07, 5.08, 5.11, 5.12, 5.14, 5.15, 5.16,. 5.17, 5.18, 5.1.9 and 5.20 of the Richfield City Charter and adds a new Section 5.22. c The changes that have been proposed generally fall into three categories: (1) substantive changes that are intended to address clerical problems that were encountered in previous referendum efforts; (2) substantive changes that are intended to protect the referendum process from fraud; (3) changes to conform the Charter to court decisions; and (4) grammatical changes to improve the clarity of the ordinance. An explanation of most of the changes is contained in a discussion draft that was provided to the Charter Commission m June 2003 (copy attached). The final draft ~'~`, contains a few additional changes, which are summarized here. ,, The Commission revised Section 5.04 to require 25 members for any committee sponsoring an initiative. This was a recommendation that had been made by the League of Women Voters, and it prompted a technical change to the form for the petition, set forth at Sections 5.06 and 5.12. Section 5.05 was revised to require signatures of 15 percent of registered voters on an initiative petition, instead of 5 percent. That change was consistent with changes recommended to Section 5.06, which had been recommended by the City Council following a suggestion by the League of Women Voters. The Charter Commission approved the attached ordinance and voted 10-1 to submit the attached ordinance to the City Council for approval. The public hearing and second reading are scheduled for November 12, 2003. III. BASIS OF RECOMMENDATION A. POLICY • The Charter Commission has recommended changes that will conform the City Charter to applicable law, including (1) the addition of a provision that excepts land use and zoning ordinances from referendum and initiative, (2) the repeal of limitations on the expenditures that petition. committees may make; (3) the addition of a requirement that an initiative. ordinance may only relate to one subject; (4) the revision of deadlines to hold an election to conform to state timelines. • Many of the changes recommended by the Charter Commission are intended to make the meaning of the Charter more clear and readily understandable. • The Charter Commission has proposed amendments that will assist the City Clerk in determining the adequacy of petitions, namely (1) allowing an additional 5 working days to verify petitions and (2) requiring that petition signers provide their printed names and signatures. • Some of the proposed changes are designed to prevent the incidence of fraud and protect the integrity of the initiative and referendum process, including (1) requiring that petition forms advise signers of criminal penalties for forging a signature or accepting compensation to sign a petition; (2) requiring printed names and signatures on petition forms; (3) requiring that circulators must be residents of the State; and (4) adding penalties for forgery and other violations of the Charter. • Some changes were made by the Charter Commission at the suggestion of the League of Women Voters,. in order to ensure that petition drives have significant community support. These include: (1) increasing the required number of committee members for a sponsoring committee; and (2) increasing the number of signatures required for initiative and referendum petitions. B. CRITICAL ISSUES n • The Charter requirements for initiative, referendum., and recall should ~J ensure the honesty and integrity of the process to the extent possible. • The process for initiative, referendum and. recall should allow adequate opportunity for City staff to accurately and properly verify signatures. • The Charter requirements for initiative, referendum and recall need to strike an appropriate balance between ensuring that such measures ~ have broad community support and avoiding undue restrictions on the `~- exercise of initiative, referendum, and recall. C. FINANCIAL • The allowance of 5 additional days for verifying signatures will save the City some or all overtime costs. • If first reading is approved by the City Council, this matter will be set for a public hearing. State law requires that the entire text of the ordinance be published in twice in the newspaper in advance of that hearing. On second reading, the ordinance must have unanimous approval in order to be adopted. Before the City Council directs the second reading and incurs the publication costs, the City Council may want to consider the likelihood of obtaining unanimous approval upon second reading. D. LEGAL • The Council must approve the ordinance unanimously in order for the ordinance to be effective. • Some of the recommended changes, as noted, will conform the City Charter to existing law. ALTERNATIVE KECOMMENDATION(S) ~ • The Council may modify the amendment as proposed. The Charter Commission must approve any modification to the ordinance, and the Council must approve the modified ordinance unanimously in order for the Charter amendment to be effective.. • The Council may reject the proposed amendment. Anything less than unanimous approval of the proposed amendment effectively operates as a rejection of the amendment. The Charter Commission would have the option, but not the obligation, to require that the proposed amendment be submitted to the voters at the next election. I V . ATTACHMENTS I urainance Discussion draft Letter and Charter vote from Easterwood VI. PRINCIPAL PARTIES EXPECTED AT MEETING • John Easterwood. Charter Commission President BILL NO. ~ AN ORDINANCE RELATING TO CITY GOVERNMENT; MODIFYING AND CLARIFYING PROCEDURES FOR INITIATIVE, REFERENDUM AND RECALL; ESTABLISHING PENALTIES FOR SPECIFIED ELECTION MISCONDUCT; AMENDING SECTIONS 5.01, 5.02, 5.04, 5.05, 5.06, 5.07, 5.08,5.11,5.12,5.14,5.15, 5.16, 5.17, 5.18, 5.19, AND 5.20 OF THE RICHFIELD CITY CHARTER; ADDING A NEW SECTION 5.22 TO THE RICHFIELD CITY CHARTER THE CITY OF RICHFIELD DOES ORDAIN: Section 1. Background; findings; authority. 1.01. The City of Richfield (City) is governed by home rule charter adopted pursuant to the Constitution of the State of Minnesota and Minnesota Statutes, Chapter 410 (Act). 1.02. The Charter Commission of the City has proposed the adoption of certain Amendments to Chapter 5 of the charter and has recommended to the City Council that the Amendments be adopted by City Council ordinance in the. manner prescribed by Section 410.12, Subdivision 7, of the Act. 1.03. A public hearing on the Amendments was held on by the City Council after two weeks' published notice containing the text of the Amendments as required by the Act. The notice contained a brief description of the nature and scope of the Amendments. All persons desiring to be heard with reference to the Amendments ~ were heard at the public hearing. 1.04. The Council finds and determines that it is in the best interests of the City and its inhabitants that the Amendments be adopted. Section. 2 Adoption; effective date; filing. 2.01. The Amendments as proposed by the Charter Commission are adopted. 2.02. Section 5.01 of the Richfield City Charter is amended to read as follows: Section 5.01. Powers Reserved by the People. The people of Richfield reserve to themselves the powers of initiative, referendum and recall, to be exercised, in accordance with the provisions of this Charter; to Initiative is the n oramance elected public official from office. Initiative and referendum may not be used involves land use or zoning. 2.03. Section 5.02 of the Richfield City Charter is repealed. 2.04. Section 5.04 of the Richfield City Charter is amended to read as follows: Section 5.04. Initiation of Measures. Any ~e 25 residents of the City who are registered voters may form themselves into a sponsoring committee ~, fror the initiation, ofna~ ~o.,,, of +,.,o~ an ordinance as permitted by section 5.01 of this Charter. Before circulating any petition +"° the committee must file an affidavit and its proposed petition ~ ~iorifioe-J ^^^„ of +hoir with the City Clerk;. The affidavit must state that a committee has been formed, must contain, +nrvo+hcr ~eii+h +hoir the names and addresses ,as of the committee members ^~;^h nnmmi++oo ,and must be signed by each member of the committee, whose signatures must be verified by a notarypublic. T#ey s#atl The committee must also attach a verified copy of the proposed ordinance to each of the signature papers herein described, together with the committee .members' names and addresses as sponsors #1~ereef. The ordinance must relate to only one subject which is clearly expressed in the petition. Every circulator of a signature paper must 2.05. Section 5.05 of the Richfield City Charter is amended to read as follows: Section 5.05. Form of Petition and of Signature Papers. The petition for the adoption of any ordinance shall must consist of the ordinance, together with all the signature papers and affidavits therete attached. S~sk~ A_ petition el~at( is not ~e complete unless signed by a number of registered voters equal to at least #+ve fifteen percent 1! 5%} of the total number of registered voters at the time of the last regular municipal election. All the signatures need not be on one signature paper, but the circulator of every saGk~ signature paper s#atl must make an affidavit that each signature appended to the paper is the genuine signature of the person whose name it purports to be. Each signature paper s#a~-I must be in substantially the following form: INITIATIVE PETITION Proposing an ordinance to (Stating the Purpose of the Ordinance}. A certified a copy of w#isk~ the proposed ordinance is to attached. A. Sponsoring Committee This ordinance is sponsored by the following committee of City of Richfield residents who are registered voters: Name Address 1. 2. 3. ti jlisting all members of the committee] B. Instructions to Petition Signers Date Legal Signature Name (print legibly) Address sprint IegibY) 1. 2. 3. (~+ +h° °r,r! of +h° lic+ of oiwr+°+~ ~r°~ ~h°II h° °r~n°r~rJ°r! +h° The affidavit of the circulator m°r,+i^n°rt ~h^.,° must be attached at the end of each signature ~~~) 2.06. Section 5.06 of the Richfield City Charter is amended to read as follows: Section 5.06. Filing of Petition and Action Thereon. All the ~~ signature papers sit must be filed in the office of the City Clerk as one instrument. Within #W2-(~} ten (10) working days after the filing of that petition, the City Clerk s#afl must ascertain by examination, the number of registered voters in the City whose signatures are °^.,°n'-1°r! +N`°r°+^ attached and whether this number is at least ftue fifteen percent (~15%) of the total number of registered- voters at the time of the last regular municipal election. The validity of the signatures must be judged as of the day the petition was filed. If the City Clerk finds the petition ~ to be insufficient or irregular, the City Clerk ~t~i must at once notify one or more of the sponsoring committee of that fact, certifying the reasons for the finding. The committee shall then be given thirty (30) days in which to file additional signature papers and to correct the petition in all other particulars. If at the end of that period the petition is found to be still insufficient or irregular, i~T^II h° ail°.+ "" the City Clerk shall file the petition in the City Clerk's office and noti each member of the committee chnll h° „^+ifi°,~ of that fact h., +"° ~i+„ ~'°rL The final finding of the insufficiency or irregularity of a petition s does not prejudice the filing of a new petition for the same purpose, nor s#afl does it prevent the Council from referring the ordinance to .the voters. at the next regular or special election at its option. 2.07. Section 5.07 of the Richfield City Gharter is amended to read as follows: Section 5.07. Action of Council on Petition. When the petition is found to be sufficient, the City Clerk sl~ll• must so certify to the Council at its next meeting, stating the number of ^°+i+~ valid signatures on the petition and the percentage of the total number of registered voters at the time of the last ~- regular municipal election which they constitute; a-rid--tie. The Council shall at once read the ordinance and may refer it to an appropriate committee. The committee or Council sn~t",~euPe~+~^^"~~T must hold a public f}ear+~S hearing upon the ordinance; a#°~--t#~.~"ol,~,~,~^f `"'hi..h +h° The undersigned registered voters, understanding the terms and nature of the ordinance attached, petition the Council for its adoption, or, in lieu thereof, for its submission to the voters for their approval. but not later than sixty-fve (65) days after the City Clerk ~. vras submitted the ordinance to the Council ~j~--t#~~--ot~~, the Council must take final action on the ordinance. If the Council fails to pass the proposed ordinance, or passes it in a form different from that set forth in the petition and unsatisfactory to the sponsors, the proposed ordinance s must be submitted by the Council to a vote at the next regular municipal election, but if the nn~~rtfx~ig,~°~,~-~ number of valid signatures on the petition is equal to at least fifteen twenty percent (~ 20%) of the total number of registered voters at the time of the last regular municipal election, the Council must call a special election upon the measure. Such special election s~t4 must be held not less than t#~+A3 fift 50 nor more than sixty-five (65) days from date of final action on the ordinance by the Council or, if there has been no final action, from a#~ the expiration of sixty-five (65) days from the date of submission to the Council ~eih°n +hore hoc h°°n nn ~n~~ on+inn; but if a regular election is to occur within three months, the Council naay must submit the ordinance at that election. If the Council passes the proposed ordinance with amendments and at least four-fifths (4/5) of the sponsoring committee do not express their dissatisfaction with such amended form by a statement filed with the City Clerk, within ten (10) days of the passage thereof by the Council, the ordinance need not be submitted to the voters. 2.08. Section 5.08 of the Richfield City Charter is amended to read as follows: Section 5.08. Initiative Ballots. The ballots used when voting upon any such proposed ordinance s#aA must state the substance of the ordinance and s#afl must give the voters the opportunity to vote either "yes" ~ \` or "no" on the question of adoption. If a majority of the. votes on any such ordinance are in favor of it, it droll +h°r°i inns h°ni+m° becomes an ordinance of the City. Any number of proposed ordinances may be voted upon at the same election, but the voter smolt must be allowed to vote for or against each separately. In case of inconsistency between two initiated ordinances approved at one election, the one approved by the higher percentage of voters voting on the question °"°" nr°.,°i' rep vails to the extent of the inconsistency. 2.09. Section 5.11 of the Richfield City Charter is amended to read as follows: Section 5.11. The Referendum. If prior to the date when an ordinance takes effect a petition signed by qualified registered voters of the City equal in number to ten fifteen percent (~A°~e 15%) of the total number of registered voters at the time of the last regular municipal election is filed with the City Clerk requesting that any such ordinance be repealed or submitted to a vote of the registered voters, .the ordinance °"°" +h°r°h.. h° is prevented from going into operation. All the signature pages must be filed as one the petition within ten X10) working days and must certify the results of that examination. to the Council at its next regular meeting. The Council sl~tl must thereupon reconsider the ordinance ~+ i+~ ncv+ r°n~ ilor m°°+inn~ and by majority vote either repeal or affirm the ordinance as passed. If the ordinance is affirmed, the Council sl~tl must immediately order a special election. to be held thereon, or submit the ordinance at the next regular municipal election, pending which the ordinance s~~'~l-r°~n remains suspended. If a majority of the voters voting on the ordinance is opposed to the ordinance, it sit does not become effective; but if a majority of the voters favor the ordinance, it takes effect immediately or on the date therein specified. 2.10. Section 5.12 of the Richfield City Charter is amended to read as follows: Section 5.12. Referendum Petition. The requirements laid down in Sections 5.04 and 5.05 above as to the formation of committees, the form of petitions and signature papers, and residency requirements for committee members and circulators, for the initiation of ordinances shall apply to the referendum but with such changes as may be necessary. A referendum petition shall read substantially as follows: REFERENDUM PETITION Proposing the repeal of an ordinance to (stating the purpose of the ordinance)--a. A certified copy of w#isf~ the ordinance is a attached. C. Sponsoring Committee The proposed repeal is sponsored by the following committee of City of Richfield residents who are registered voters: 1. 2. 3. Name Address a. [listing all members of the committee) D. Instructions to Petition Signers Date Legal Signature Name (print legibly) Address (print legibly 1. 2. 3. (At tttl~cnv-Ci t-k~l+s+~n,+~~~",,n ho ,n„o„Qed-~#~„~avt The affidavit of the circulator must be attached at the end of the list of signatures.} The undersigned qualified registered voters, understanding the nature of the ordinance hereto attached and believing it to be detrimental to the welfare of the City, petition the Council for its submission to a vote of the voters for their approval or disapproval. 2.11. Section 5.14 of the Richfield City Charter is amended to read as follows: Section 5.14. The Recall. No less than 25 registered voters may form themselves in a committee for the purpose of bringing about the recall of any Council Member including the Mayor. If the committee seeks the recall of a district Council Member, the registered voters constituting the committee s~f must be from the Council Member's district. The committee slit must certify to the City Clerk the name of the Council Member whose removal is sought, a statement of the grounds for removal in not more than 250 words, and #-heif the committee's intention to bring about his or her recall. A copy of this certificate s#afl must be attached to each signature paper and no signature paper s#atl may be put into circulation previous to such certification. The grounds as set forth in the recall petition must be predicated on one or more charges of malfeasance, nonfeasance or both. For this purpose the word "malfeasance" means the performance of an act by a Council Member in his or her ofFcial capacity that is wholly illegal and wrongful and the word "nonfeasance" means the neglect or refusal, without sufficient excuse, to do that which it is the Council Member's legal duty to do so. 2.12. Section 5.15 of the Richfield City Charter is amended to read as follows: Section 5.15. Recall Petitions. The petition for the recall of any Council Member sl~lt must consist of a certificate identical to that filed with the City Clerk together with all the signature papers and affidavits thereto attached. All the signatures need not be on one signature paper, but the circulator of every signature paper s#atl must make an affidavit that each .signature appended to the paper is the genuine signature of the person whose name it purports to be. Every circulator of a signature paper must be a resident of the state of Minnesota.. Each signature paper s must be in substantially the following form: RECALL. PETITION Proposing the recall of from the office as which recall is sought for the reasons set forth in the attached certificate. E. Sponsoring Committee This movement is sponsored by the following committee of registered voters eligible to vote on .candidates for that office. Name Address 1. 2. 3. [listing all members of the .committee) F. Instructions to Petition Signers You are being asked to sign a petition. You must be a resident of, and a registered voter in. the City of Richfield. Everv person signing this petition criminal offense to sign a name other than vour own to the petition or The undersigned registered voters, all being eligible to vote on candidates for ~, that office, understanding the nature of the charges against the Council - Member herein sought to be recalled, desire the holding of a recall election for that purpose. Date Legal Signature Name (print legibly) Address (print legibly) 1. 2. 3. A~ t--ch~ niJ of +ho lie+ nA~~-~?~h~~l~l~h~~~nn~~~oi'1 ~hc A~~Jo~iif The affidavit of the circulator must be attached at the end of the list of sianatures. 2.13. Section 5.16 of the Richfield City Charter is amended to read as follows: Section 5.16. Filing of Petition. Within thirty (30) days after the filing of the original certificate, the committee s~ must file the completed petition in the office of the City Clerk. The City Clerk s#at-I must examine the petition within the next #iu2-(~) ten LO) working days and if the clerk finds it irregular in any way, or finds that the number of signers is less than twenty-five percent (25%) of the total number of registered voters eligible to vote on candidates for that office at the last preceding regular municipal election, the City Clerk s#atl must so notify one or more members of the committee. The committee shall then be given ten (10) days in which to file additional signature papers and to correct the petition in all other respects, but the committee may not change the statement of the grounds upon which the recall is sought. If at the end of that time the City Clerk finds the petition still insufficient or irregular, the clerk ehafl must notify all the members of the committee to that effect and fife the petition in the City Clerk's office. No further action shall be taken thereon. 2.14. Section 5.17 of the Richfield City Charter is amended to read as follows: Section 5.17. Recall Election. If the petition or amended petition is found sufficient, the City Clerk sit must transmit it to the Council without delay, and must also officially notify the person sought to be recalled of the sufficiency of the petition and of the pending action. If the Council Member sought to be recalled does not resign within ten (10) days after having been given such notice, the Council shall, at its next meeting occurring more than ten (10) days after the receipt by the Council of the recall petition, by resolution, provide for the holding of a special recall election not less than 39 50 nor more than 4~ 75 days after such meeting, but if .any other election is to occur within sixty (60) days after such meeting, the Council may in its discretion provide for the holding of the recall election at that time. If the special recall election involves a district Council Member, the recall election slit must be conducted only within the district of such Council Member. If it involves several district Council Members, the election sl~ll• must be conducted only within the districts of such Council Members. If it involves a Council Member who is elected at large, the election sit must be a City-wide election. 2.15. Section 5.18 of the Richfield City Charter Is amended to read as follows: Section 5.18. Procedure at Recall Election. The City Clerk s#atl must include with the published notice of the election the statement of the grounds ~`, for recall and also, in not more than 500 words, the answer of the Council - Member concerned in justification of his or her course in office. The election s#afl must be conducted as far as possible, in accordance with the usual procedure in municipal elections. 2.16. Section 5.19 of the Richfield City Charter is amended to read as follows: Section 5.19. Form of Recall Ballot. The form of the ballot at such election shall be: "Shall be recalled?" The name of the Council Member whose recall is sought and his or her office shall be inserted in the blank. The electors .shall be permitted to vote separately "Yes" or "No" upon this question. If a majority of those voting on the question of recall vote in favor of recall, the official shall be thereby removed from office. 2.17. Section 5.20 of the Richfield City Charter is amended to read as follows: Section 5.20. Procedure to Fill Vacancy. In the event that a Council Member is recalled by the electors or resigns after a petition has been filed for his or her recall, the vacancy s#al•I must be filled in the following manner: If less than six months remain in the Council Member's term of office. at the time of the recall election or at the time of resignation in response to a recall petition, as the case may be, the vacancy smolt must be filled by the remaining members of the City Council for the unexpired term pursuant to Section 2.05. If six months or more remain in the Council Member's term at the time of such recall or resignation, the Council sit must call a special election to fill the vacancy for the balance of the Council Member's term. Such election s#att must be called within ten (10) days after such recall or resignation, and the special election s#afl must be held not less than t~i-(~ fift 50 nor more than sixty (60) days after the meeting at which the election is called. Candidates to fill the unexpired term ~tt must be nominated in the usual way and the election s#atl must be conducted as far as possible in accordance with procedures in municipal elections except that there shall be no primary election and the candidate receiving the highest number of votes for the office shall be elected to fill the unexpired term. .18. Chapter 5 of the Richfield City Charter is amended by adding a subdivision to read as follows: Section 5.22. Offenses; Penalty. It is unlawful for a person to: an i or b. circulate an initiative or referendum .petition without .required attachments; c. circulate an initiative, referendum or recall petition when unqualified to do so; d. sign an initiative, referendum, or recall petition when that person knows he or she is not qualified to do so; e. make a false affidavit in connection with an initiative, referendum, or recall petition; ive offer to ree to num an initiative. referendum. or recall petition. This subsection does not prohibit ci related to the number of signatures obtained, as long as the circulators tully disclose all contributions received to the city clerk upon submission of the ,petitions. A violation of this section is a misdemeanor_punishable in accordance with StAtP_ IAW_ 19. Section 3.09 of the Richfield City Charter is amended to read as follows: Section 3.09. When Ordinances and Resolutions Take Effect. A resolution a~ or an emergency ordinance s"AalT-t-al~~~~t is effective immediately upon its passage or at such later date as is fixed in it. An ordinance that is expressly excepted from referendum under section 5.01 of is fixed in it. Every other ordinance °"°" +°'~° °~°^+ is effective a#~ on the thirtieth (30) day, e-x~+ue-e# after the day of publicationz or at such later date as is fixed therein. Every ordinance adopted by the voters of the City ".,~~ +.,U° °~°^+ is effective immediately upon its adoption, or at such a later time as fixed therein. .20. This ordinance is effective ninety (90) days after its publication, except that if within sixty (60) days after publication a petition requesting a referendum on this ordinance, signed by the number of registered voters of the City required by the Act is filed with the City Clerk, this ordinance will not be effective until approved by 51 % of the voters voting on the question of its adoption at the special election called by the Council for that purpose. .21. On the effective date of the Amendment, the City Clerk is authorized and directed to file copies of the Amendment with the Secretary of State of the State of Minnesota, the Hennepin County Recorder, and the City Clerk's office together with the certificate required by Section 410.11 of the Act. Passed by the City Council of the City of Richfield, Minnesota this day of 2003. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk DISCUSSION DRAFT CHAPTER 5 INITIATIVE. REFERENDUM AND RECALL Section 5.01. Powers Reserved by the People. The people of Richfield reserve to themselves the powers of initiative referendum and recall, to be exercised, in accordance with the provisions of this Charter, ' ' Section 5.02. , , e ~ ~~` e i /; r r , vrmiv~can4inn ic• •_+ mic~rl°~-ri~cCtrnrv'rr. NOTE: The U.S. Supreme Court ruled in Buckley v. American Constitutional Law Foundation, Inc. (1999) that a prohibition on the use of paid circulators is unconstitutional. The prohibition on paying for signatures has been moved to section 5.22. Section 5.03. Further Regulations. The Council may provide by ordinance such further regulations for the initiative, referendum or recall, not consistent with this Charter, as it deems necessary. (Amended Bill 1982-20) Section 5.04. Initiation of Measures. Any five residents of the City who are registered voters may form themselves into a sponsoring committee for the initiation of an-y 1 an ordinance as permitted by section 5.01 of this Charter. Before circulating any petition s#atl the committee must file an affidavit and its proposed petition with the City Clerk;. The affidavit must state that a committee has been formed, must contain, ~^^°+h°r ~eii+h +h°ir the names and addresses as of the committee members and. must be signed by each member of the committee whose signatures must be verified by a notary public. ~e~} s#atl The committee must also attach a verified copy of the proposed ordinance to each of the signature papers herein described, together with the committee members' names and addresses as sponsors t#er~eef. The ordinance must relate to only one subject which is clearly expressed in the petition. Every circulator of a signature paper must be_a resident of the state of Minnesota. NOTE: This section has been modified to: (1) clarify that the sponsoring committee must be composed of residents of the City; (2) refer to section 5.01 rather than re-list the types of ordinances for which initiative is not available; (3) require the sponsoring committee to NOTE: The only substantiive change is to add "land use or zoning" ordinances to the list of ordinances for which initiative and referendum is not available. That is a codification of the Court of Appeals decision in Nordmarken v. City of Richfield. I reworded the section to make it more concise and reader-friendly. submit an affidavit with their signatures (You may want to consider adding the form of that affidavit in the charter); (4) add an express requirement that the ordinance must relate to ~, only one subject (which court decisions already require); (5) add a requirement that circulators must be residents of the state of Minnesota. The Eighth Circuit Court has upheld a similar residency requirement in Initiative & Referendum Institute v. Jaeger (2001). ADDED NOTE: At least two cities add a requirement that the proposed ordinance be reviewed by the city attorney before the committee may circulate the petition. Another requires the city clerk to approve the petition before it can be circulated. I have some concerns about that type of provision and would prefer to discuss the concept with and receive direction from the commission. Section 5.05. Form of Petition and of Signature Papers. The petition for the adoption of any ordinance s#afl must consist of the ordinance, together with all the signature papers and affidavits #~erete attached. ~sf~ A_ petition s~ is not be complete unless signed by a number of registered voters equal to at least five percent of the total number of registered voters at the time of the last regular municipal election. All the signatures need not be on one signature paper, but the circulator of every s~ signature paper sit must make an affidavit that each signature. appended to the paper is the genuine signature of the person whose name it purports to be. Each signature paper must be in substantially the following form: INITIATIVE PETITION Proposing an ordinance to (Stating the Purpose of the Ordinance). A certified e copy of w#if# the proposed ordinance is fierete attached. G. Sponsoring Committee This ordinance is sponsored by the following committee of City of Richfield residents who are registered voters: Name Address 1. 2. 3. 4. 5. H. Instructions to Petition Signers name to the petition. The undersigned registered voters, understanding the terms and nature of the ordinance attached, petition the Council for its adoption, or, in lieu thereof, for its submission to the voters for their approval. Date Legal Signature Name sprint legibly) Address sprint legibly) 1. 2. 3. (eR +~.~ ni-! of +h° li~+ r.f ~inr,~+~ ~r°~~h~~l~~~nn°nr!°rl +''~The affidavit of the circulator n.,°n+ir,n°rt -,"^"° must be attached at the end of each signature paper.) NOTE: Many of the changes are for clarification or simpler wording. I presumed that by last ""regular election" what was intended was the last regular municipal election. The substantive change was to require a date and the printed name of each signer. The commission may want to consider adding a form for the circulator affidavit. 1 also added the headings in the form and the instructions to signers. Section 5.06. Filing of Petition and Action Thereon. All the signature papers s#afl must be filed in the office of the City Clerk as one instrument. Within #+ve-(~j ten 10 working days after the filing of that petition, the City Clerk shad must ascertain by examination, the number of registered voters in the City whose signatures are a~er~led }hie attached and whether this number is at least f+ve fifteen percent (~ 15%) of the total number of registered voters at the time of the last regular municipal election. The validity of the signatures must be judged as of the day the petition was filed. If the C~ Clerk finds the petition ~ to be insufficient or irregular, the City Clerk sk~al•I must at once notify one or more of the sponsoring committee of that fact, certifying the reasons for the finding. The committee shall then be given thirty (30) days in which to file additional signature papers and to correct the petition in all other particulars. If at the end of that period the petition is found to be still insufficient or irregular, i~;^" "° fi'°,, "".the City Clerk shall file the petition in the City Clerk's office and noti each member of the committee of that fact "~~ +"° r•i+" ~'°rL. The final finding of the insufficiency or irregularity of a petition s#afl does not prejudice the filing of a new petition for the same purpose, nor sl~al-I does it prevent the Council from referring the ordinance to the voters at the next regular or special election at its option. NOTE: This section has been modified to give the clerk 10 working days instead of 5 days to complete review of the petition. Also, the charter specifies the date as of which the signatures must be determined to be valid. 1. e., every signer must be a registered voter and resident of the city as of the date the petition is submitted. The city council also requested that the 5% requirement be changed to 15%. The other changes are for simpler wording. Section 5.07. Action of Council on Petition. When .the petition is found to be sufficient, the City Clerk s#~afl must so certify to the Council at its next meeting, stating the number of n°+i+~ valid signatures on the petition and the percentage of the total number of registered voters at the time of the last. regular municipal election which they constitute, °~e. The Council shall at once read the ordinance and may refer it to an appropriate committee. The committee or Council must hold a public ~ea~ags hearing upon the ordinance, °~*°r +h° hnlrlinn of .eihinh +h° ^r~innnn° ~h~ll . After the_public hearing, but not later than sixty-five (65) days after the Gity Clerk ~+°+° ..n.,n ,~rhi,.h i+ ,.,~~ submitted the ordinance to the Council "" +h° ~i+" (~1°rL the Council must take final action on the ordinance. If the Council fails to pass the proposed ordinance, or passes it in a form different from that set forth in the petition and unsatisfactory to the sponsors, the proposed ordinance sttal•I must be submitted by the Council to a vote at the next regular municipal election, but if the ni-raiTrr"r~e~~ of +h° einnore of number of valid signatures on the petition is equal to at least ft#teen twenty percent (~ 20%) of the total number of registered voters at the time of the last regular municipal election, the Council swafl must call a special election upon the measure. Such special election sl~att must be held not less than fk"~A-} fifty (50) nor more than sixty-five X65) days from date of final action on the ordinance by ~~. the Council or if there has been no final action, from a#ter the expiration of sixty-five (65) days from the date of submission to the Council ~•~"°^ +horo h,~ hoen n„ +in~~ ".+..,n; but if a regular election is to occur within three months, the Council must submit the ordinance at that election. If the Council passes the proposed ordinance with amendments and at least four-fifths (4/5) of the sponsoring committee do not express their dissatisfaction with such amended form by a statement filed with the City Clerk, within ten (10) days of the passage thereof by the Council, the ordinance need not be submitted to the voters. NOTE: Most of the changes are to simplify the wording. The deadlines for holding the election have been modified to avoid conflict with state law, which requires that notice of a special municipal election be given to the county auditor at least 49 days before the election. The city council requested that the 15% requirement be changed to 20%. Section 5.08. Initiative Ballots. The ballots used when voting upon any such proposed ordinance sf~alt must state the substance of the ordinance and sk~alt must give the voters the opportunity to vote either "yes" or "no" on the question of adoption. If a majority of the votes on any such ordinance are in favor of it, it ch,ll +horo.,nnn ho,.,.,,,,o becomes an ordinance of the City. Any number of proposed ordinances may be voted upon at the same election, but the voter s#atl must be allowed to vote for or against each separately. In case of inconsistency between two initiated ordinances approved at one election, the one approved by the higher percentage of voters voting on the question sk~att ail• rp evails to the extent of the inconsistency. NOTE: The changes are for simplification of wording. Section 5.09. Amendment or Repeal. Any ordinance adopted by the vote of the people cannot be repealed or amended except by the vote of the people or by the unanimous vote of all members of the Council. Section 5.10. Initiation of Charter Amendments. Nothing in this Charter shall be construed as in any way affecting the right of the registered voters under the constitution and statutes of Minnesota to propose amendments to this Charter. Section 5.11. The Referendum. If prior to the date when an ordinance takes effect a petition signed by qualified registered voters of the City equal in number to fifteen percent (~-8°~ 15%) of the total. number of registered voters at the time of the last regular municipal election is filed with the City Clerk requesting that any such ordinance be repealed or submitted to a vote of the registered voters, the ordinance ch~ll +horc4.,, ho is prevented from going into operation. All the signature pages must be filed as one instrument. The Citv Clerk must ascertain by examination. the sufficiency of the petition at its next regular meeting. The Council shalt must thereupon reconsider the ordinance at i+~ nov+ ro'v~~l~r moo+inn~ and by majority vote either repeal or affirm the ordinance as passed. If the ordinance is affirmed, the Council sk~atl must immediately order, a special election to be held thereon, or submit the ordinance at the next regular municipal election, pending. which the ordinance s"~~~-~~ remains suspended.. If a majority of the voters voting on the ordinance is opposed to the ordinance, it shat-l does not become effective; but if a majority of the voters favor the ordinance, it takes effect. immediately or on the date therein specified. NOTE: This section has been changed to simplify wording. Relevant requirements from 5.06 have been incorporated. The city council requested that the 10% requirement be changed to 15%. Section 5.12. Referendum Petition. The requirements laid down in Sections 5.04 and 5.05 above as to the formation of committees, the form of petitions and signature papers, and residency requirements .for committee members and circulators, for the `- ' initiation of ordinances shall apply to the referendum but with such changes as may be necessary. A referendum petition shall read substantially as follows: REFERENDUM PETITION Proposing the repeal of an ordinance to (stating the purpose of the ordinance)-a. A certified copy of w#iol} the ordinance is tte~te attached. I. Sponsoring Committee The proposed repeal is sponsored by the following committee of City of Richfield residents who are registered voters: Name Address 1. 2. 3. 4. 5. J. Instructions to Petition Signers Date Legal Signature Name (print legibly Address (print legibly) 1. 2. 3. (~+ +-,o ~ „f +ho r~.+ „f ;,.,,..~-o~ ~h.,n r,o ,~ ~,~~ ~~;,~,.,~+ The affidavit of the rn~rr~efla-vrcrtc~r ti~r~~a~rr--vim ~~v ~-rcra-v-rc circulator mon+innorl ,hn„e must be attached at the end of the list of signatures.) NOTE: Most of the changes are to simplify wording. One substantive change is to add the date and printed name of each signer to the form of petition. It also incorporates the ^ residency requirements added for committee members and circulators. l added the instructions to signers in the petition form. Section 5.13. Referendum Ballots. The ballots used in any referendum election shall conform to the rules laid down in Section 5.08 of this Charter for initiative ballots. The undersigned qualified registered voters, understanding the nature of the ordinance hereto attached and believing it to be detrimental to the welfare of the City, petition the Council for its submission to a vote of the voters. for their approval or disapproval Section 5.14. The Recall. No less than 25 registered voters may form themselves in a committee for the purpose of bringing about the recall of any Council Member including the Mayor. If the committee seeks the recall of a district Council Member, the -' registered voters constituting the committee sWail must be from the Council Member's district. The committee sl~al•I must certify to the City Clerk the name of the Council Member whose removal is sought, a statement of the grounds for removal in not more than 250 words, and tt-ie+r the committee's intention to bring about his or her recall. A copy of this certificate sly must be attached to each signature paper and no signature paper s#atl may be put into circulation previous to such certification. The grounds as set forth in the recall petition must be predicated on one or more charges of malfeasance, nonfeasance or both. For this purpose the word "malfeasance" means the performance of an act by a Council Member in his or her official capacity that is wholly illegal and wrongful and the word "nonfeasance" means the neglect or refusal, without sufficient excuse, to do that which it is the Council Member's legal duty to do so. NOTE.' Changes are to simplify wording. Section 5.15. Recall Petitions. The petition for the recall of any Council Member sly must consist of a certificate identical to that filed with the City Clerk together with all the signature papers and affidavits thereto attached. All the signatures need not be on one signature paper, but the circulator of every signature paper s#afl must make an affidavit that each signature appended to the paper is the genuine signature of the person whose name it purports to be. Every circulator of a signature paper must be a resident of the state of Minnesota. Each signature paper shaft must be in substantially the following form: RECALL PETITION Proposing the recall of from the office as which recall is sought for the reasons set forth in the attached .certificate. K. Sponsoring Committee This movement is sponsored by the following committee of registered voters eligible to vote on candidates for that office. Name Address 1. 2. 3. [listing all members of the committee) L. Instructions to Petition Signers You are being asked to sign a petition. You must be a resident of, and a registered voter in, the City of Richfield. Every .person signing this petition must do so in the presence of the person circulating the petition.. It is a criminal offense to sign a name other than vour own to the aetition or to accept compensation for signing vour name to the petition. The undersigned .registered voters, all being eligible to vote on candidates for that office, understanding the nature of the charges against the Council Member herein sought to be recalled, desire the holding of a recall election for that purpose. Date Legal Signature Name sprint legibly) Address (print legibly 1. 2. 3. rn tk}~onrl .,f the licit of cinn~t~ ~rca~oll ho ~nncn~c,-1 fho effirl~"ii The affidavit Of the circulator must be attached at the end of the list of signatures. NOTE. Many changes are to simplify wording. The changes to the form of petition (adding a date and printed name of each signer and instructions to signers) are also added here. It also adds a requirement that circulators be residents of the state. Section 5.16. Filing of .Petition. Within thirty (30) -days after the filing of the original certificate, the committee must file the completed petition in the office of the City Clerk. The City Clerk amt must examine the petition within the next ~n-~(~`, ten 10 working days and if the clerk finds it irregular in any way, or finds that the number of signers is less than twenty-five percent (25%) of the total number of registered voters eligible to vote on candidates for that office at the last preceding regular municipal election, the City Clerk ~al•I must so notify one or more members of the committee. The committee shall then be given ten (10) days in which to file additional signature papers and to correct the petition in all other respects, but the committee may not change the statement of the grounds upon which the recall is sought. If at the end of that time the City Clerk finds the petition still insufficient or irregular, the clerk r~tl must notify all the members of the committee to that effect and sttafl file the petition in the City Clerk's office. No further action shall be taken thereon. NOTE: This section has been changed to give the clerk 10 working days instead of 5 days to review the petition. The other changes are to simplify wording. Section 5.17. Recall Election. If the petition or amended petition is found sufficient, the City Clerk e~ must transmit it to the Council without delay, and s must also officially notify the person sought to be recalled of the sufficiency of the petition and of the pending action. If the Council Member sought to be recalled does not .resign within ten (10) days after having been given such notice, the Council shall, at its next meeting occurring more than ten (10} days after the receipt by the Council of the recall petition, by resolution, provide for the holding of a special recall election not less than ~9 50 nor more than 45 75 days after such meeting, but if any other election is to occur within sixty (60) days after such meeting, the Council may in its discretion provide for the holding of the recall election at that time. If the special recall election involves a district Council Member, the recall election must be conducted only within the district of such Council Member. If it involves several district Council Members, the election sit must be conducted only within the districts of such Council Members. If it involves a Council Member who is elected at large, the election s#atl must be a City-wide election. NOTE: Minor wording changes. Section 5.18. Procedure at Recall Election. The City Clerk sl~al-I must include with the published notice of the election the statement. of the grounds for recall and also, in not more than 500 words, the answer of the Council Member concerned in justification of his or her course in office. The election s#afl must be .conducted as far as possible, in accordance with the usual procedure in municipal elections. NOTE:. Minor wording changes. Section 5.19. Form of Recall Ballot. The form of the ballot at such election shall be: "Shall be recalled?" The name of the Council Member whose recall is sought and his or her office shall be inserted in the blank. The electors shall be permitted to vote separately "Yes" or "No" upon this question. If a majority of those voting on the question of recall vote in favor of recall, the official shall be thereby removed from office. NOTE: The change inserts omitted words. This change can be made administratively, if review of the original charter or amending ordinance shows that the omission of the words was simply a clerical error. Section 5.20. Procedure to Fill Vacancy. In the event that a Council Member is recalled by the electors or resigns after a petition has been filed for his or her recall, the vacancy sbafl must be filled in the following manner: If less than six months remain in the Council Member's term of office at the time of the. recall election or at the time of -resignation in response to a recall petition, as the case may be, the vacancy ebafl must be filled by the remaining members of the City Council for the unexpired term pursuant to Section 2.05. If six months or more remain in the Council Member's term at the time of such recall or resignation, the Council s#atl must call a special election to fill the vacancy for the balance of the Council Member's term. Such election s must be called within ten (10) days after such recall or resignation, and the special election s~ll• must be held not less than fk~+r~~-(383 fifty~50) nor more than sixty (60) days after the meeting at which the election is called. Candidates to fill the unexpired term s must be nominated in the usual way and the election ebatl must be conducted as far as possible in accordance with procedures in municipal elections except that there shall be no primary election and the candidate receiving the highest number of votes for the office shall be elected to fill the unexpired term. NOTE: Most of the changes are wording changes.. The 30-day minimum deadline. for holding a special election was changed to 50 days in order to conform to state law. Section 5.21. The term of the candidate selected by the voters at the regular or special election to fill the unexpired term shall start as soon as the declaration of the results has been filed with the City Clerk, and the person has qualified for office. Section 5.22. Offenses; Penalty It is unlawful for a person to: h. sian a name other than that person's own name to an initiative, referendum or recall petition; i. circulate an initiative or referendum petition without required attachments; j. circulate an initiative, referendum or recall petition when unqualified to do so; k. sign an initiative, referendum, or recall petition when that person knows he or she is not qualified to do so; I. make a false affidavit in connection with an initiative, .referendum, or recall etip tion; m. pay or offer to pay a person, or receive payment or agree to receive payment, for signing an initiative, referendum or recall petition; n. pay or offer to pay a person, or receive payment or agree to payment, on a basis related to the number of signatures obta circulating an initiative, referendum, or recall petition. This subsect not prohibit the payment of salary and expenses for circulation of the on a basis not related to the number of sianatures obtained. as Ion circulators fully disclose all contributions received to the city clerk upon submission of the petitions. A violation of this section is a misdemeanor punishable in accordance with state law. NOTE: This section identifies offenses that are punishable as a misdemeanor offense. It is intended to prevent fraud. Paragraph (f) is taken from the repealed section 5.02. Paragraph (g) is a modified form of the prohibition on paying circulators. The Eighth Circuit Court of Appeals has upheld the constitutionality of a requirement that circulators not be paid on aper-signature basis. Initiative & Referendum Institute v. Jaeger (2001). ~1 Charter Commission City of Richfteici;llt:innesota ~ 6700 Portland Avenue South ;' Rich, field Minnesota 55423 September 21, 2003 The Honorable Martin J. Kirsch Members of the City Council City of Richfield 6700 Portland Avenue South Richfield, Minnesota 55423 Dear Mayor Kirsch and Members of the City Council: The .Charter Commission of the City of Richfield presents to you a set of proposed amendments to the City Charter. Proposed ordinances containing the amendments accompany this letter. These proposed amendments are the product of a long, detailed process of reflection and discussion on the part of the Charter Commission. At a meeting held Wednesday, 13 August 2003, the Commission formally discussed and voted approval of each proposed amendment. All but two of the proposed changes. to the Charter were unanimously adopted. The results of the vote on each proposed amendment may be of interest to the Council. Those votes are reported for you on the attached table. We forward these proposed changes to you with the recommendation that you consider and adopt them. I wish to publicly register my thanks to and appreciation for the members of the Charter Commission. They have acted with patience and deliberation through long months. At all times, the members of the Commission demonstrated a willingness to listen to opposing points of view, to think carefully about issues, and to work toward consensus. These fellow citizens of yours are a credit to the Richfield community. I also want to thank Ms. Corrine Thomson, the City Attorney. At every turn she provided sound counsel and did the necessary work of preparing the ordinances, in multiple drafts, which you now have in final form. As always, I am happy to assist you in any way and to respond to questions you might have. Cordially, ohn L. Easterwood President Charter Commission City of Richfield 612-869-0509(H) 952-820-2671(V1n ~- caatinC~att.net ORDINANCE RECOMMENDED CHARACTER OF THE VOTE AN ORDINANCE RELATING TO CITY GOVERNMENT; AMENDING SECTIONS 3.05, 4.07 AND 6.02 OF THE Approved Unanimously RICHFIELD CITY CHARTER 11-Yes 0- No AN ORDINANCE RELATING TO CITY GOVERNMENT; MODIFYING AND CLARIFYING PROCEDURES FOR INITIATIVE, REFERENDUM AND RECALL; ESTABLISHING PENALTIES FOR SPECIFIED ELECTION MISCONDUCT; Approved AMENDING SECTIONS 5.01, 5.02, 5.04, 5.05, 5.06, 5.07, 5.08, 11-Yes 1- No 5.11, 5.12, 5.14, 5.15, 5.16, 5.17, 5.18, 5.19, AND 5.20 OF THE RICHFIELD CITY CHARTER; ADDING A NEW SECTION 5.22 TO THE RICHFIELD CITY CHARTER AN ORDINANCE RELATING TO CITY GOVERNMENT; Approved Unanimously AMENDING SECTIONS 2.03 AND 3.01 OF THE RICHFIELD 11-Yes 0-No CITY CHARTER AN ORDINANCE RELATING TO CITY GOVERNMENT; REPEALING SECTIONS 8.04 AND 8.05 OF THE RICHFIELD Approved CITY CHARTER; RELATING TO REQUIREMENTS FOR 10- Yes 1-Abstain ~ ( CERTAIN CAPITAL IMPROVEMENT PROJECTS AN ORDINANCE RELATING TO CITY GOVERNMENT; AMENDING SECTION 6.01 OF THE RICHFIELD CITY Approved Unanimously CHARTER; REMOVING RESIDENCY REQUIREMENT FOR 11-Yes 0- No CITY MANAGER AN ORDINANCE RELATING TO CITY GOVERNMENT; MODIFYING AND CLARIFYING FINANCIAL AND BUDGETING PROCEDURES; AMENDING SECTIONS 7.01, 7.02, 7.03,.7.05, Approved Unanimously 7.06, 7.07, 7.08, 7.09, 7.10, 7.11, 7.12, 7.13, 7.14, 7.15 AND 11-Yes 0- No 7.16 OF THE RICHFIELD CITY CHARTER; REPEALING SECTION 7.04 FROM THE RICHFIELD CITY CHARTER; ADDING A NEW SECTION 7.17 ~~i _i AGENDA SECTION: Consent AGENDA ITEM # ]A REPORT# 219 STAFF REPORT CITY COUNCIL MEETING OCTOBER 14, 2003 REPORT PREPARED BY: CORRINE H. THOMSON, CITY ATTORNEY NAME, TITLE COUNCIL PRESENTER: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: First reading of an ordinance amending Sections 3.05, 4.07 and 6.02 of-the Richfield City Charter. I. RECOMMENDED ACTION: By Motion: Approve first reading of the attached ordinance amending Sections 3.05, 4.07 and 6.02 of the Richfield. City Charter and schedule the public hearing and second reading for November 12, 2003. ~ II. BACKGROUND ~ The Richfield Charter Commission had discussed, reviewed and proposed amendments to several sections of the Richfield City Charter. The attached ordinance amends Sections 3.05, 4.07, and 6.02. The amendments were proposed as non-controversial, "housekeeping" amendments. The amendment to Section 3.05 is intended to clarify the language of that section, particularly with reference to the time that must elapse between first and second reading of an ordinance. The Charter currently allows ordinances to be considered at two consecutive meetings held two weeks apart, and the amendment clarifies that language. The amendment to Section 4.07 is to conform the Charter to State law, with respect to the time in which elections must be canvassed. Under State law, the City has seven days to canvass election results. The current Charter language requires the 1014charter3.03 4.07 6.02 results to be canvassed by the next Monday following the election, which is typically only six days after the election. With the change in the Council meeting schedule to ~'; second Tuesdays, the change also avoids the need for a special meeting for the purpose of canvassing election results. The change to Section 6.02 was made to reflect recent organizational changes in the Department of Public Safety. The Charter Commission approved the attached ordinance and voted 11-0 to submit the attached ordinance to the City Council for approvel. The public hearing and second reading are scheduled for November 12„ 2003. III. BASIS OF RECOMMENDATION A. POLICY • The proposed change to Section 3.05 is intended to clarify the meaning of the Charter and to permit the City Council to consider proposed ordinances at two consecutive meetings that are two weeks apart. • The proposed change to Section 4.07 will avoid the necessity of an additional special meeting for the purpose of canvassing election results. ~~ The proposed change to Section 6.02 recognizes organizational ~_~ changes that make the current language inaccurate. B. CRITICAL ISSUES • The proposed. amendments improve the City Charter by making its meaning more clear and its language accurate. • The proposed amendment to Section 4.07 will reduce the need for special City Council. meetings. C. FINANCIAL • The proposed change makes it possible for the City to avoid the costs of a special meeting for the purpose of canvassing election results. • If first reading is approved by the City Council, this matter will be set for a public hearing. State law requires that the entire text of the ordinance be published in twice in the newspaper in advance of that hearing. On second reading, the ordinance must have unanimous approval in order to be adopted. Before the City Council directs the second reading and incurs the publication costs, the City Council may want to consider the likelihood of obtaining unanimous approval upon second reading. ~ D. LEGAL • The Council must approve the ordinance unanimously in order for the ordinance to be effective. IV. ALTERNATIVE RECOMMENDATION(S~ ~~ • The Council may modify the amendment as proposed. The Charter Commission must approve any modification to the ordinance, and the Council must approve the modified ordinance unanimously in order for the Charter amendment to be effective. • The Council may reject the proposed amendment. Anything less than unanimous approval of the proposed amendment effectively operates as a rejection of the amendment. The Charter Commission would have the option, but not the obligation, to require that the proposed amendment be submitted to the voters at the next election. V. ATTACHMENTS • Ordinance. • Letter and Charter vote from Easterwood. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • John Easterwood, Charter Commission President BILL NO. AN ORDINANCE RELATING TO CITY GOVERNMENT; AMENDING SECTIONS 3.05, 4.07 AND 6.02 OF THE RICHFIELD CITY CHARTER THE CITY OF RICHFIELD DOES ORDAIN: Section 1. Background; findings; authority. 1.01. The City of Richfield (City) is governed by home rule charter adopted pursuant to the Constitution of the State of Minnesota and Minnesota Statutes, Chapter 410 (Act). 1.02. The Charter Commission of the City has proposed the adoption of Amendments to certain sections of the charter and recommended to the City Council that the Amendments be adopted by City Council ordinance in the manner prescribed by Section 410.12, Subdivision 7, of the Act. The form of the Amendments is set out in Sections 2.02, 2.03 and 2.04 of this ordinance. 1.03. A public hearing on the Amendments was held on by the City Council after two weeks' published notice containing the text of the Amendments as required by the Act. The notice contained a brief description of the nature and scope of the Amendments. All persons desiring to be heard with reference to the Amendments were heard at the. public hearing. 1.04. The Council finds and determines that it is in the best interests of the City and its inhabitants that the Amendments be adopted. Section. 2 Adoption; effective date; filing. 2.01. The Amendments as proposed by the Charter Commission are adopted. 2.02. Section 3.05 of the Richfield City Charter is amended to read as follows: Section 3.05. Procedure on Ordinances. The enacting clause of -all ordinances e~ must be in the words "City of Richfield does ordain." Every ordinance s~ must be presented in writing. ^~^ ^r,~i.,.,nno n.,,,n„+ ", passage- Except for an emergency ordinance. every. orainance m introduced at a meeting that occurs no_less than fourteen (14) days bef 2.03. Section 4.07 of the Richfield City Charter is amended to read as follows: Section 4.07. Canvass of Elections. The Council must meet and canvass the election returns at the next regular or special Council meeting immediately following any regular, primary or special election but in no event later than +"e nnn.,,~-,., ro..+ fnlln~niinti the time prescribed by state law, and s~a+4 must make full declaration of the results as soon as possible, and file a statement thereof with the City Clerk. This statement shalt must include.: (a) the total number of good ballots cast; (b) the total number of spoiled or defective ballots; (c) the true vote for each candidate, with an indication of those who were elected or nominated; (d) a true copy of the ballots used; (e) the names of the judges and clerks of election; and (f) such other information as may seem pertinent. The City Clerk s#at4 must forthwith notify all persons elected or nominated of their election or nomination. In case of a tie vote, the Council el~f4 must determine the result by lot. The City Clerk a is the final custodian of the ballots. 2.04. Section 6.02, subdivision 3 of the Richfield City Charter is amended to read as follows: Subd. 3. The City Manager shall appoint and remove, upon the basis of merit and fitness and subject to applicable civil service provisions, if any, the City Clerk, all heads of departments and all subordinate officers and employees in the departments. The Director of Public Safety, having administrative and supervisory control over the police and f+re other non-civil- service divisions of the Department of Public Safety, is not under the jurisdiction of the police and fire civil service commission of the City. Appointment or removal of department heads shall be made final only upon a majority vote of the Council. 2.05. This ordinance is effective ninety (90) days after its publication, except that if within sixty (60) days after publication a petition requesting a referendum on this ordinance, signed by the number of registered voters of the City required by the Act is filed with the City Clerk, this ordinance will not be effective until approved by 51 % of the voters voting on the question of its adoption at the special election called by the Council for that purpose. 2.06. On the effective date of the Amendment, the City Clerk is authorized and directed to file copies of the Amendment with the Secretary of State of the State of Minnesota, the Hennepin County Recorder, and the City Clerk's office together with the certificate required by Section 410.11 of the Act. Passed by the City Council of the City of Richfield, Minnesota this day of 2003. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk ,~ ,; Charter Commission City of Richfield; Minnesotac 6700 Portland Av~ercue South Richfiela~ Minnesota 55423 September 21, 2003 The Honorable Martin J. Kirsch Members of the City Council City of Richfield 6700 Portland Avenue South Richfield, Minnesota 55423 Dear Mayor Kirsch and Members of the City Council: The Charter Commission of the City of Richfield presents to you a set of proposed amendments to the City Charter. Proposed ordinances containing the amendments accompany this letter. These proposed amendments are the product of a long, detailed process of reflection and discussion on the part of the Charter Commission. At a meeting held Wednesday, 13 August 2003, the Commission formally discussed and voted approval of each proposed amendment. All but two of the proposed changes to the Charter were unanimously adopted. The results of the vote on each proposed amendment may be of interest to the Council. Those votes are reported for you on the attached table. We forward these proposed changes to you with the recommendation that you consider and adopt them. I wish to publicly register my thanks to and appreciation for the members of the Charter Commission. They have acted with patience and deliberation through long months. At all times, the members of the Commission demonstrated a willingness to listen to opposing points of view, to think carefully about issues, and to work toward consensus. These fellow citizens of yours are a credit to the Richfield community. I also want to thank Ms. Corrine Thomson, the City Attorney. At every turn she provided sound counsel and did the necessary work of preparing the ordinances, in multiple drafts, which you now have in final form. As always, I am happy to assist you in any way and to respond to questions you might have. Cordially, ohn L. Easterwood President Charter Commission City of Richfield 612-869-0509(H) 952-820-2671(V~ captinCa)att.net ORDINANCE RECOMMENDED CHARACTER OF THE VOTE AN ORDINANCE RELATING TO CITY GOVERNMENT; AMENDING SECTIONS 3.05, 4.07 AND 6.02 OF THE Approved Unanimously RICHFIELD CITY CHARTER 11-Yes 0- No AN ORDINANCE RELATING TO CITY GOVERNMENT; MODIFYING AND CLARIFYING PROCEDURES FOR INITIATIVE, REFERENDUM AND RECALL; ESTABLISHING PENALTIES FOR SPECIFIED ELECTION MISCONDUCT; Approved AMENDING SECTIONS 5.01, 5.02, 5.04, 5.05, 5.06, 5.07, 5.08, 11-Yes 1- No 5.11, 5.12, 5.14, 5.15, 5.16, 5.17, 5.18, 5.19, AND 5.20 OF THE RICHFIELD CITY CHARTER; ADDING A NEW SECTION 5.22 TO THE RICHFIELD CITY CHARTER AN ORDINANCE RELATING TO CITY GOVERNMENT; Approved Unanimously AMENDING SECTIONS 2.03 AND 3.01 OF THE RICHFIELD 11-Yes 0-No CITY CHARTER AN ORDINANCE RELATING TO CITY GOVERNMENT; REPEALING SECTIONS 8.04 AND 8.05 OF THE RICHFIELD Approved CITY CHARTER; RELATING TO REQUIREMENTS FOR 10- Yes 1-Abstain CERTAIN CAPITAL IMPROVEMENT PROJECTS AN ORDINANCE RELATING TO CITY GOVERNMENT; AMENDING SECTION 6.01 OF THE RICHFIELD CITY Approved Unanimously CHARTER; REMOVING RESIDENCY REQUIREMENT FOR 11-Yes 0- No CITY MANAGER AN ORDINANCE RELATING TO CITY GOVERNMENT; MODIFYING AND CLARIFYING FINANCIAL AND BUDGETING PROCEDURES; AMENDING SECTIONS 7.01, 7.02, 7.03, 7.05, Approved Unanimously 7.06, 7.07, 7.08, 7.09, 7.10, 7.11, 7.12, 7.13, 7.14, 7.15 AND 11-Yes 0- No 7.16 OF THE RICHFIELD CITY CHARTER; REPEALING SECTION 7.04 FROM THE RICHFIELD CITY CHARTER; ADDING A NEW SECTION 7.17