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11-26-02 agenda• CITY OF RICHFIELD, MINNESOTA TUESDAY, NOVEMBER 26, 2002 REGULAR CITY COUNCIL MEETING COUNCIL CHAMBERS 6700 PORTLAND AVENUE 6:30 P.M. AGENDA • _ _ _ . _.~..._. INTRODUCTORY P~20CEEDIAIGS ~-;_. _: , ...,_.... _.~ ,,.. Call to order Roll call Open Forum (15 minutes maximum) Each speaker is asked to complete a speaker's form and provide it to a staff member. Speakers are also asked to keep their comment period to three minutes to allow sufficient time for others. Comments are to be an opportunity to address the Council on items not on the agenda. Notes: Pledge of Allegiance Approval of minutes of Regular City Council Meeting of November 12, 2002 PRESENTATION 1. Discussion regarding sealcoating project Notes: COUNCIL DISCUSSION • Notes: AGENDA APPROVAL • 2. Council approval of agenda CONSENT CALENDAR 3. Consent Calendar contains several separate items which are acted upon by the City Council in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have. also been approved. No further Council action is necessary. However, any Council Member may request that an item be removed from the Consent Calendar and -placed on ~#he-regular-agenda-~#or Council ~iisc~ssion=and ac#ic~n.:-~A~-~#ems .listed on the Consent Calendar are recommended for approval. A. Consideration of approval of resolution authorizing amendment to LCTS sub- contractor agreement with Hennepin County S.R. No. 279 B. Consideration of approval of contract renewal with Chief's Towing for Public Safety towing services from December 1, 2002 through November 30, 2003 S.R. No. 280 Notes: • 4. Consideration of items, if any, removed from Consent Calendar Notes: PUBLIC HEARING 5. Public hearing regarding resolution giving preliminary approval to financing for project to be undertaken by Academy of Holy Angels, 6600 Nicollet Avenue Staff Report No. 281 Notes: OTHER BUSINESS 6. Consideration of design of pedestrian crosswalk with raised median island on Lake Shore Drive between 66th Street and Lyndale Avenue (deferred from November • 12, 2002) Staff Report No. 282 • Notes: 7. City Manager's report Notes: 8. Claims and payrolls - - Open Forum (additional 15 minutes if more time needed after first Open Forum and by majority vote of the City Council) Each speaker is asked to complete a speaker's form and provide it to a staff member. Speakers are also asked to keep their comment period to three minutes to allow sufficient time for others. Comments are to be an opportunity to address the Council on items not on the agenda. Notes: • 9. Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the Administrative Services Director at 612-861-9702. • r~ CITY COUNCIL MEETING AGENDA SECTION: Other Business AGENDA ITEM # REPORT # 282 STAFF REPORT NOVEMBER 26, 2002 REPORT PREPARED BY: REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: THOMAS FOLEY, TRANSPORTATION ENGINEER NAME, TITLE MICHAEL EASTLING, PUBLIC WORKS DIRECTOR NAA/E, TITLE • REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Provide direction on the design of a pedestrian crosswalk on Lake Shore Drive. (Deferred from November 12, 2002). I. RECOMMENDED ACTION: L(Q ! By Motion: Endorse one of the two design alternatives for providing a pedestrian crosswalk on Lake Shore Drive with a raised median island. (Deferred from November 12, 2002). L' II. BACKGROUND At the Council work session on October 22, 2002, two design alternatives were presented to Council for consideration on the design of a mid-block pedestrian crosswalk with a raised median island on Lake Shore Drive between 66th Street and Lyndale Avenue. The two options differed basically in providing on-street parking on the north side of Lake Shore Drive. Both alternatives reduced the roadway from four travel lanes to two to improve safety for pedestrians. Council directed staff to evaluate whether ornot on-street parking conflicted with the use of the proposed shoulders of the roadway for a bicycle lane. 1126Lake Shore Drive Council deferred action from the Council Meeting on November 12, pending full Council attendance. III. BASIS OF RECOMIlVIENDATION A. POLICY • Both proposed design alternatives are consistent with Minnesota State Aid Standards for roadways with bike lanes. B. CRITICAL ISSUES • Proposed cross sections were developed to determine if there is adequate width to accommodate both a bike lane and on-street parking on the north side of Lake Shore Drive. • The proposed pedestrian crosswalk is being considered to increase safety for pedestrians desiring to travel to and from the Wood Lake Nature Center. • The redesign of Lake Shore Drive offers the possibility of providing bike lanes and on-street parking on the roadway shoulders of Lake Shore Drive. • Reduction of the number of traffic lanes from four to two will be adequate to handle forecasted traffic volumes. • C. FINANCIAL • There is no difference in cost in choosing one alternative or the other. • The cost of installing the raised median will be borne by the Gramercy Corporation, the developer of the City Bella Development Project. D. LEGAL • The City Attorney will be available to answer questions. IV. ALTERNATIVE RECONIlVIENDATION(S~ • It is reasonable to consider the Do Nothing alternative. Lake Shore Drive would remain afour-lane undivided road with two mid-block pedestrian crosswalks. V. ATTACHIVIENTS • Cross-sections of the two alternatives showing the lane widths with and without on-street parking. Both alternatives provide for bike lanes on the shoulders. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None anticipated. • E] City of RichFie(d City of RichFie(d Lakeshore Drive Inprovenents Pa#entint Cross-Section Ske#ch Typical Section at Ped Crossing 9' z LAN cx~r LANE z a ~ J W Y ! W Y_ ~ ` ~ R i i f City of RichFie(d Lnkeshore Drive Inprover-ents Pntentinl Cross-section Sketch Typical Section Vithout Parking i ~.~...~, ~«.~. Lakeshore Drive Inprovenents Potentint Cross-section Sketch Typical Section with Pnrking AGENDA SECTION: public Aearin~ AGENDA ITEM # 5 REPORT # 281 STAFF REPORT CITY COUNCIL MEETING NOVEMBER 26, 2002 REPORT PREPARED BY: CHRIS REGIS, FINANCE MANAGER NAME, TITLE REPORT PRESENTER: CHRIS REGIS, FINANCE MANAGER NAME, DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ~/ SIGNATURE • ITEM FOR COUNCIL~C-ONSIDERATION: Public hearing and consideration of the attached preliminary resolution with regards to the financing of a project to be undertaken by the Academy of Holy Angels. I. RECOMMENDED ACTION: By Motion: Conduct and close the public hearing and by motion: Approve the attached resolution giving preliminary approval to the financing of a project to be undertaken by Academy of Holy Angels pursuant to Minnesota Statutes, Section 469.154, and authorizing the submission of an application to the Minnesota. Department of Trade and Economic Development and the preparation of necessary documents. ~ II. BACKGROUND The Academy of Holy Angels (Holy Angels) is planning a renovation and addition of existing facilities. The project would include the construction and equipping of a new convocation center and gymnasium including class and meeting room space • together with related facilities. Holy Angels seeks assistance from the City of Richfield in the form of access to the City's remaining 2002 Bank Qualified debt of approximately $8.5 million to finance the project. The use of the City's bank qualified debt would mean a lower interest cost to Holy Angels. 1126AHABond The City would only serve as a conduit for the project financing. The City would not incur any financial liability as a result of the issuance of the debt, nor would the City incur any out of pocket expenses. III. BASIS OF RECOMMENDATION A. POLICY • Under the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Sections 469.152 to 469.165, the City of Richfield has authority to issue revenue bonds. B. CRITICAL ISSUES • The remaining balance of bank qualified debt for 2002 expires at December 31, 2002. C. FINANCIAL • The estimated cost of the project is approximately $10.8 million. • The bonds will be issued in the City's name, but will not be a charge against the City's general credit or taxing powers. The City will act as a conduit for the financing of the project. It does not create any financial liability to the City. • The City is to be reimbursed and held harmless for and from any out- of-pocket expenses related to the tax exempt financing, including, but not limited to, legal fees, financial analyst fees, bond counsel fees, staff costs, and any deposits or application fees required under state law in order to secure allocation of bonding authority. • The applicant will be charged an annual administrative fee in the • amount of 1/8th of 1 % (.125%) of the outstanding principal balance of the bonds. D. LEGAL • Kennedy & Graven will serve as bond counsel for the issue. • A public hearing is required as part of the issuance of private activity revenue bond financing. • Notice of public hearing was published November 7, 2002 in the Sun Newspapers. Time and date of the public hearing is 6:30 p.m. on November 26, 2002. ALTERNATIVE KECOMMENDATION(S) ~ • Forgo approving the attached resolution and not proceed with the issuance of the private activity revenue bonds. ATTACPIMENTS • Resolution Giving Preliminary Approval to the Financing of a Project to be undertaken by Academy of Holy Angels Pursuant to Minnesota Statutes, Section 469.154, and Authorizing the Submission of an Application to the Minnesota Department of Trade and Economic Development and Preparation of Necessary Documents. VI. PRINCII'AL PARTIES EXPECTED AT MEETING • John Utley, Kennedy & Graven, Chartered • Dr. Jill Reilly, Academy of Holy Angels • Michael Schaefer, Catholic Finance Corporation • Paul Tietz, Briggs and Morgan RESOLUTION NO. RESOLUTION GIVING PRELIMINARY APPROVAL TO THE FINANCING OF A PROJECT TO BE UNDERTAKEN BY ACADEMY OF HOLY ANGELS PURSUANT TO MINNESOTA STATUTES, SECTION 469.154, AND AUTHORIZING THE SUBMISSION OF AN APPLICATION TO THE MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT AND THE PREPARATION OF NECESSARY DOCUMENTS WHEREAS, the City of Richfield, Minnesota (the "City"), is authorized by Minnesota Statutes; Sections 469.152 to 469.165, as amended the ("Act), to issue revenue bonds to finance, in whole or in part, the-costs of the acquisition, construction;-reconstruction, improvement, betterment, or extension of a project to be owned by a contracting party; and WHEREAS, a "project" includes any properties, real or personal, used or useful in connection with a revenue producing enterprise and, in the case of an organization primarily engaged in educational activities as a secondary school, may also include the payment and discharge of all or any part of the outstanding indebtedness of the contracting party previously incurred in the acquisition or betterment of its existing facilities, including accrued interest and prepayment premium; and WHEREAS, the City Council of the City has received from the Academy of Holy Angels, a Minnesota nonprofit corporation (the "Borrower"), a proposal that the City undertake to finance a project to be owned and operated by the Borrower through the issuance by the City of revenue bonds pursuant to the Act; and WHEREAS, the project proposed to be financed with revenue bonds to be issued by the City is comprised of: (i) the renovation of, and the construction of additions to, the Academy of Holy Angels High School (the "Facility") owned by the Borrower and located at 6600 Nicollet Avenue in the City; (ii) the acquisition and installation of equipment in the Facility; and (iii) the refunding of outstanding indebtedness of the Borrower previously incurred to finance the acquisition and betterment of the Facility (collectively, the "Project"); and WHEREAS, as required by the terms of Section 469.154 of the Act, a notice of public hearing stating the time and place of the public hearing and stating the general nature of the Project and an estimate of the principal amount of bonds or other obligations to be issued to finance the Project was published in the official newspaper of the City and newspaper of general circulation in the City not less than fourteen days and not more than thirty days prior to the public hearing; and WHEREAS, a public hearing on the proposal to undertake and finance the Project was -held on November 26, 2002; and WHEREAS, the notice and public hearing satisfy the public approval requirements set forth in Section 147(f) of the Internal Revenue Code of 1986, as amended. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota, as follows: 1. The Project is hereby given preliminary approval by the City and the issuance of revenue bonds or obligations (the "Obligations") for such purposes and in an amount not to exceed $10,000,000 is hereby approved, subject to the approval of the Project by the Minnesota Department of Trade and Economic Development ("DYED"), and subject to the mutual agreement of the City, the Borrower, and the initial purchaser or purchaser of the Obligations as to the details of the Obligations and provisions for their payment. In all events, it is understood, however, that the Obligations of the City shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any properly of the City, and the Obligations, when, • as, and if issued, shall recite in substance that the Obligations, including interest thereon, are payable solely from the revenues received from the Project and other property or security expressly pledged to the payment thereof, and shall not constitute a pecuniary obligation of the City or a charge against its general credit or taxing powers. The Obligations shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. 2. Based solely on representations made to the City by the Borrower, it is hereby found and determined that: (a) the Project constitutes properties, real and personal, used or useful in connection with one or more revenue producing enterprises within the meaning of Subdivision 2(b) of Section 469.153 of the Act; (b) the Project furthers the purposes set forth in the Act; (c) the availability of the financing under the Act and the willingness of the City to furnish such financing will be a substantial inducement to the Borrower to undertake the Project; (d) the Project is expected to create five additional new jobs in addition to the existing 250 jobs; and (e) no public official of the City has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project. 3. In accordance with Section 469.154 of the Act, the City Manager of the City is hereby authorized and directed to submit the application for approval of the Project to DTED. The City Manager and other officers, employees and agents of the City are hereby authorized to provide DTED with any information needed for this purpose, and the City Manager is authorized to initiate and assist in the preparation of such documents as may be appropriate to the Project. 4. The law firm of Kennedy & Graven, Chartered is authorized to act as Bond Counsel and to assist in the preparation and review of necessary documents relating to the Project • and the Obligations to be issued in connection therewith. The City Manager and other officers, employees and agents of the City are hereby authorized to assist Bond Counsel in the preparation of such documents. 5. In accordance with Section 469.154, subdivision 7, of the Act, the Mayor and other officers, employees and agents of the City are hereby authorized and directed to encourage the Borrower to provide employment opportunities to economically disadvantaged or unemployed individuals. Such individuals may be identified by such mechanisms as are available to-the City such as a first source agreement in which the Borrower agrees to use a designated State of Minnesota employment office as a first source for employment recruitment, referral, and placement. 6. The Borrower has agreed to pay any and all costs paid or incurred by the City in connection with the Project and the issuance of the Obligations whether or not the Project is approved by DTED, whether or not the Project is carried to completion, and whether or not the Obligations and related documents are executed and delivered. 7. All commitments of the City expressed herein are subject to the condition that by December 1, 2003, the City and the Borrower shall have agreed to mutually acceptable terms and conditions of the Obligations, the loan agreement, and the other instruments and proceedings relating to the Obligations and their issuance and sale. If the events set forth herein do not take place within the time set forth above, or any extension thereof, and the Obligations are not sold within such time, this resolution shall expire and be of no further effect. . 8. The adoption of this Resolution does not constitute a guaranty or firm commitment that the City will issue the Obligations as requested by the Borrower. The City retains the right in its sole discretion to withdraw from participation and accordingly not to issue the Obligations, or issue the Obligations in an amount less that the amount referred to herein, should the City at any time prior to issuance thereof determine that it is in the best interest of the City not to .issue the Obligations, or to issue the Obligations in an amount less than the amount referred to in paragraph 1 hereof, or should the parties to the transaction be • unable to reach agreement as to the terms and conditions of any of the documents required for the transaction. 9. In anticipation of the issuance of the Obligations to finance all or a portion of the Project, and in order that completion of the Project will not be unduly delayed when approved, the Borrower is hereby authorized to make such expenditures and advances toward payment of that portion of the costs of the Project as Borrower considers necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the Obligations if and when delivered but otherwise without liability on the part of the City. 10. This resolution shall take effect immediately upon adoption. Adopted by the City Council of the City of Richfield, Minnesota, this 26th day of November, 2002. Martin J. Kirsch, Mayor Attest: Nancy Gibbs, City Clerk • .Revised Feb. 2001 STATE OF MINNESOTA MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT BUSINESS AND COMMUNITY DEVELOPMENT DIVISION APPLICATION FOR APPROVAL OF INDUSTRIAL DEVELOPMENT BOND PROJECT PURSUANT TO MINNESOTA STATUTES, SECTION 469.152 THROUGH 469.165 (Please submit this form in duplicate -all supporting data in single copy only) Date: December , 2002 Draft 10/28/02 The governing body of _ the Citv of Richfield ,Minnesota, hereby applies to the Minnesota Department of Trade and Economic Development (Department) for approval of a proposed Industrial Development Bond issue as required by Minn. Stat. §469.152 - 469.165. Address of Issuer: 6700 Portland Avenue Richfield, MN 55423-2560 Attn: Chris Reis, Finance Manager Phone Fax: 612-861-9723 612-861-9749 We have entered into preliminary discussions with: Firm: Academy of Holy Angels Address: 6600 Nicollet Avenue South ~ity: Richfield State: MN Zip: 55423-2498 Attorney: Paul Tietz, Brigs and Moran, P.A. Address: 2400 IDS Center, 80 South 8`s Street City: Minneapolis State: MN Zip: 55402 Name of Project: Academy of Holy Angels This firm is engaged primarily in (nature of business): a private high school The proceeds from the sale of the Industrial Development Bonds will be used to (describe the project): pay for and refinance the construction and equipping additions to and renovation of existing_portions of non-reli~ioUS portions of a private high school Address of Project: 6600 Nicollet Avenue South. Richfield, Minnesota 55423-2498 Acquisition of Land: $ _0_ New construction: 5,775,000 Demolition and site preparation: 215,000 Acquisition and installation of Equipment: 288,000 Fees: Architectural, engineering, inspection, fiscal, legal, administration, or printing: 605.000 Construction Interest: _p_ Initial Bond Reserve: 855,000 Contingencies: 100,000 Other: 2,990,000 TOTAL: $ 10.828.000 U 1462465v2 It is presently estimated that construction will begin on or about April 1, 2003 and will be complete on or about October 1, 2003. • When completed, there will be approximately 5 new jobs created by the project at an annual payroll of approximately $125,000 based upon currently prevailing wages. (If applicable) There are 250 existing jobs provided by business. (If applicable) There will be 125 jobs created by construction of the project. Number of hours 30,000. Average wage level $40.00 per hour. Repayment of the proposed issue will be amortized over a period of 23 years. The following exhibits are furnished with this application and are incorporated herein by reference: 1. An opinion of bond counsel that the proposal constitutes a project under Minn. Stat. §469.153, subd. 2. 2. A copy of the resolution by the governing body of the issuer giving preliminary approval for the issuance of its revenue bonds and stating that the project, except for a project under Minn. Stat. §469.153, subd. 2(g) or (j) would not be undertaken but for the availability of Industrial Development Bond financing. 3. A comprehensive statement by the municipality indicating how the project satisfies the public or purpose and policies of Minn. Stat. §469.152 - 469.165. 4. A letter of intent to purchase the bond issue or a letter confirming the feasibility of the project from a financial standpoint. 5. A statement signed by the principal representative of the issuing authority to the effect that upon entering into the revenue agreement, the information required by Minn. Stat. §469.154, subd. 5 will be submitted to the Department (not applicable to project under Minn. Stat. §469.153, subd. 2(g) or (j). .6. A statement signed by the principal representative of the issuing authority that the project does not include any property to be sold or affixed to or consumed in the production of property for sale, and does not include any housing facility to be rented or used as a permanent residence. A statement signed by a representative of the issuing authority that a public hearing was conducted pursuant to Minn. Stat. §469.154, subd. 4. The statement shall include the date, time and place of the meeting and certify that a draft copy of this application with all attachments was available for public inspection and that all interested parties were afforded an opportunity to express their views. Copies of notice(s) as published which indicate the date(s) of publication and the newspaper(s) in which the notice(s) were published. 9. Provide a plan for compliance of employment preference of economically disadvantaged or unemployed individuals. (See Minn. Stat. §469.154, subd. 7.) r~ U 1462465v2 We, the undersigned, are duly elected representatives of the City of Richfield. Minnesota and solicit your approval of this project at • your earliest convenience so that we may carry it to a fmal conclusion. Signed by: (Principal Officers or Representatives of Issuing Authority; tYne or print official's name on the line to the left of the si¢nature line. Thank you.) Martin Kirsch Mayorlchair Signature Samantha Orduno Title Citv Manager Signature This approval shall not be deemed to be an approval by the Department of the State of the feasibility of the project or the terms of the revenue agreement to be executed or the bonds to be issued therefor. Authorized Signature, Minnesota Department of Trade Date of Approval and Economic Development :lease return to: Minnesota Department of Trade and Economic Development Attn: Paul A. Moe, Duector Office of Business Finance 500 Metro Square Building 121 Seventh Place East St. Paul, Minnesota 55101-2146 Phone: 651-297-1397 Fax: 651-296-5287 1462465x2 AGENDA SECTION: Consent AGENDA ITEM # 3B REPORT # 2 $ Q STAFF REPORT CITY COUNCIL MEETING NOVEMBER 26, 2002 REPORT PREPARED BY: NAME, TITLE REPORT PRESENTER: NAME, TITLE • • DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: JAY HENTHORNE, POLICE LIEUTENANT DAN SCOTT, DIRECTOR OF PUBLIC SAFETY / SIGNATURE ITEM FOR COUNCIL CONSIDERATION: Consideration of renewing the contract with Chief s Towing, Inc., for Public Safety towing services for December 1, 2002 throu h November 30, 2003. I. RECOMMENDED ACTION: APPROVE. THE RESOLUTION TO By Motion: Approve the attached December 1, 2002 through November 30, 2003 towing service contract between the City and Chief's Towing, Inc., 8610 Harriet Avenue South, Bloomington, MN, and the 2.8% increase in charges contained therein. II. BACKGROUND The City currently has a contract with Chief's Towing Inc., for Public Safety towing services. Chief s Towing Inc., was awarded the contract for 2002 and would like to renew the contract for 2003 as the contract expires on November 30, 2002. The contract can be automatically renewed if both parties agree to the renewal and if Chief's notifies the City in writing 30 days in advance of the expiration of the contract that they wish to renew. Chief's Towing Inc. is located in the City of Bloomington and previously contracted with the City of Richfield for Public Safety towing services. Their performance 1126Chief s Towing Contract Renewal during the contract period was satisfactory. They meet all requirements stated in • the contract, and currently tow for Bloomington Police. III. BASIS OF RECONIlVTENDATION • Chief's notified the City that they wish to renew the contract. • The Public Safety Department wishes to renew the contract with Chief's Towing, Inc. A. POLICY • Contracts for services need not be competitively bid. • The contract has numerous conditions that must be mef. Chief's Towing, Inc. is a reputable, established towing business that meets all contract requirements. B. CRITICAL ISSUES • A six-month notice must be given by either party in writing to terminate the contract. • On December 1, 2002, Public Safety must have towing services. This is particularly important with the possibility of snow emergencies occurring at any time. C. FINANCIAL • The current contract with Chief's reflects rates from 2002. Rates will increase 2.8 percent for the period December 1, 2002 -November 30, 2003. This is according to the Consumer Price Index as it relates to the Minneapolis/St. Paul metropolitan area. • There is adequate funding in the Public Safety budget to cover the increased costs. D. LEGAL • The City Attorney has reviewed and approved the past contract with Chief's Towing, Inc. IV. ALTERNATIVE RECOMNIENDATION(S~ • Do not sign the contract. However, Public Safety must have towing and impound services. V. ATTACPIMENTS • Towing contract for December 1, 2002 -November 30, 2003. • Specification for 2002 Towing, Impounding and Storage of Motor Vehicles (Exhibit A). • Revised Proposal Form indicating rate change for contract year beginning • December 1, 2002 through November 30, 2003 (Exhibit B). VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None AGREEMENT BETWEEN THE CITY OF RICHFIELD AND CHIEF'S TOWING, INC. • FOR TOWING, IMPOUNDING AND STORAGE OF MOTOR VEHICLES THIS AGREEMENT is made this 30th day of November, 2002, between the City of Richfield, a Minnesota municipal corporation located at 6700 Portland Avenue South, Richfield, Minnesota 55423 (hereinafter referred to as the "City"), and Chief's Towing, Inc., located at 8610 Harriet Avenue South (hereinafter referred to as the "Contractor"). WITNESSETH WHEREAS, the City has a need to contract for the towing, impounding and storage of motor vehicles; and WHEREAS, the City requires that the towing operators are located within three (3) miles of the City limits; and WHEREAS, the Contractor is the operator of a towing and storage facility within three (3) miles of the City limits and has the expertise and capabilities to provide the required services; NOW THEREFORE, in consideration of the terms and conditions expressed herein, the parties agree as follows: TERM OF AGREEMENT The term of this Agreement shall be from December 1, 2002, to November 30, • 2003, subject to termination as provided in Subdivision V. II. DUTIES OF CONTRACTOR A. The Contractor shall tow, impound, and store all motor vehicles, which are ordered removed under the direction of the police chief, or the fire chief, of the City of Richfield or their authorized and legal representatives. The Contractor shall be entitled to a charge for its towing and storage services pursuant to those fees specified in the Contractor's Proposal (Exhibit B). It is agreed that neither the City nor the Richfield Police Department is responsible for any charges as a result of towing and/or storage, with the exception of those vehicles identified by the Police as subject to forfeiture, and that the Contractor assumes liability for any unpaid charges. B. The Contractor agrees to provide the services, as proposed, and perform all other terms and conditions according to the City's Specifications and the Contractor's Proposal, incorporated by reference herein as Exhibit A and Exhibit B. C. The Contractor shall defend, indemnify and hold harmless, the City of Richfield, its officials, employees and agents, from any and all claims, causes of action, lawsuits, damages, losses, or expenses, including attorney fees, arising out of or resulting from the Contractor's (including its officials, agents or employees), performance of the duties required under this Agreement, provided that any such claim, damages, loss or expense is attributable to bodily injury, sickness, diseases or death or to injury to or destruction of property including the loss of use resulting therefrom and is caused in whole or in part by any negligent act or omission or willful misconduct of Contractor. • D. It is agreed that nothing herein contained is intended or should be construed in any manner as creating or establishing the relationship of copartners between the parties hereto or as constituting the Contractor's staff as the agents, representatives or employees of the City for any purpose in any manner whatsoever. The Contractor and its staff are to be and shall remain an independent contractor with respect to all services performed under this Agreement. The. Contractor represents that it has, or will secure at its own • expense, all personnel required in performing services under this Agreement. Any and all personnel of the Contractor or other persons, while engaged in the performance of any work or services required by the Contractor under this Agreement, shall have no contractual relationship with the City and shall not be considered employees of the City, and any and all claims that may or might arise under the Workers' Compensation Act of the State of Minnesota on behalf of said personnel or other persons while so engaged, and any and all claims whatsoever on behalf of any such person or personnel arising out of employment or alleged employment including, without limitation, claims of discrimination against the Contractor, its officers, agents, contractors or - employees shall in no way be-the responsibility of the City;-and the Contractor shall defend, indemnify and hold the City, its officers, agents and employees harmless from any and all such claims regardless of any determination of any pertinent tribunal, agency, board, commission or court. Such personnel or other persons shall not require nor be entitled to any compensation, rights or benefits of any kind whatsoever from the City, including, without limitation, tenure rights, medical and hospital care, sick and vacation leave, Workers' Compensation, Unemployment Compensation, disability, severance pay and PERA. E. The parties agree to comply with the -Minnesota State Human Rights Act, Minnesota Statutes, Section 363. F. The Contractor agrees to maintain for the full term of this Agreement, the following minimum insurance coverage: a) $1,000,000.00 Comprehensive General Liability insurance, • Business Auto Policy with $1,000,000.00 limits and Garage Keeper's Legal Liability. b) Workers' Compensation insurance covering all employees of the Contractor, or his agents, in accordance with the Minnesota Workers' Compensation Law. Certifications of insurance--must be filed with the City and shall include a provision that states the insurance company shall give the City at least 25 days written notice prior to cancellation, non-renewal, or any material change in the policy. The Contractor further agrees to name the City of Richfield as additional insured on said comprehensive general liability policy. G. The Contractor agrees to furnish on or before the date this Agreement becomes effective, an acceptable corporate surety bond in the amount of $10,000, payable to the City of Richfield and subject to approval by the Richfield City Attorney, for the faithful performance of all duties and obligations imposed under the terms and conditions of the Agreement. III. DUTIES OF THE CITY The City agrees to pay the Contractor the flat rate charge of $133.65 per vehicle for the towing and storage of vehicles identified by the Police Department as subject to forfeiture and which are subsequently released to the Police Department. IV. MISCELLANEOUS • A. This agreement represents the entire Agreement between the Contractor and the City and supersedes and cancels any and all prior agreements or proposals, written or oral, between the parties relating to the subject matter hereof; and amendments, addenda, alterations, or modifications to the terms and conditions of this Agreement shall be in writing and signed by both parties. B. The Contractor agrees to comply with the Americans With Disabilities Act (ADA), .Section 504 of the Rehabilitation Act of 1973, and not discriminate on the basis • of disability in the admission or access to, or treatment of employment in its services, programs, or activities. The Contractor agrees to hold harmless and indemnify the City from costs, including but not limited to damages, attorney's fees and staff time, in any action or proceeding brought, alleging a violation of ADA and/or Section 504 caused by the Contractor. Upon request, .accommodation will be provided to allow individuals with disabilities to participate in all services, programs and activities. The City has designated coordinators to facilitate compliance with the Americans with Disabilities Act of .1990, as required by Section 35.107 of the U.S.- Department of Justice. regulations, and to coordinate compliance with Section 504 of the Rehabilitation -- -Act of 1973, as mandated by_Section 8:53 of the U.S. Department of Housing and Urban Development regulations. C. The Contractor will comply with:all applicable provisions of the Minnesota Government Data Practices Act; Chapter 13 of the Minnesota Statutes. The ..;.Contractor agrees to comply with all. applicable local, state and federal laws, rules and regulations in the performance of the duties of this contract. D. >This Agreement shall not be assignable except at the written consent of the City. E. The books, records, documents, .and accounting procedures of the Contractor, relevant to this Agreement, are subject to examination by the City, and either the legislative or state auditor as appropriate, pursuant to Minnesota Statutes, Section 168.06, Subdivision 4. F. The City and the Contractor agree to submit all claims, disputes and other matters in question between the parties arising out of or relating to this Agreement to mediation. The mediation shall be conducted through the Mediation Center, 1821 University Avenue, St. Paul, Minnesota. The parties hereto shall decide whether mediation shall be binding or non-binding. If the parties cannot reach agreement, mediation shall be non-binding. In the event mediation is unsuccessful, either party may exercise its legal or equitable remedies and commence such action prior to the expiration of the applicable statute of limitations. V. TERMINATION :Either party may terminate this Agreement for any reason upon giving six (6) months advanced written notice to the other party. IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be :executed the day and year first above written. CITY OF RICHFIELD DATED: BY: Its Mayor DATED: BY: Its Manager CHIEF'S TOWING, INC. • DATED: BY: Its: EXHIBIT A 2002 SPECIFICATIONS • TOWING, IMPOUNDING AND STORAGE OF MOTOR VEHICLES GENERAL It is the intent and purpose of these specifications to specify and detail the requirements for the Towing, Impounding and Storage of Motor Vehicles for the City of Richfield 24 hours per day, 365 days per year, on an as needed and directed basis. Such direction is to be by the Chief of Police, the Fire Chief, or their authorized and legal representatives. .The contract for service shall commence on December 1, 2002 and terminate on .November 30, 2003. The City reserves the right to extend. the contract for additional (1) one year periods if such an extension is permitted by the Contractor, the standard of service is satisfactory, and, has the approval of the Richfield City Council At the time of contract extension, the contractor may request a price increase for all categories to be effective during the contract extension period. Any requested increase shall not exceed the Consumer. Price Index for the Minneapolis/St Paul urban area and have the approval of the Richfield City Council. Application for extension and price increases or decreases shall be initiated by the performing contractor, must be submitted in writing and be in the hands of the proper Director of Public Safety at least sixty (60) days prior to the date of contract expiration. All of the towing, impounding and storage of motor vehicles under this contract shall be in .accordance with Minnesota Chapter 1686 and any section of the Richfield City Code • related thereto. SPECIAL PROVISIONS 1. The contractor must own or have direct access to satisfactory equipment and trained, available personnel, in order to provide immediate and prompt service as ordered and requested by the authorized City officials. 2. The contractor must own or have available within (3) miles of Richfield's city limits the following equipment as a minimum: A. Two trucks having a manufacturer's gross vehicle weight rating of 4 ton or more, to be equipped with a crane and winch, and further equipped to control the movement of the towed vehicle, and B. Equipment sufficient and designed to move a completely demolished vehicle by means of dollies or low-bed trailers. A listing of all equipment to be utilized shall be submitted to the City. Such listing shall show the make and model of all equipment available for use under this contract, along with size and all other pertinent information, such as specialized equipment not necessarily herein specified, but which may be a factor in performing effectively and efficiently. All equipment to be used by the contractor under this contract shall be maintained in good repair and condition. The City reserves the right to inspect the equipment from time to time for the purpose of determining that equipment condition is in conformance with the terms and conditions of the specifications • and the contract. 3. All storage and parking lot facilities and all equipment to be used by the contractor under this contract must be located within (3) miles of Richfield's city limits. The storage and parking lot facilities must meet all of the applicable State building code standard and municipal license and zoning requirements, including those relating to screening and landscaping of the City in which the facility is located. • 4. The facilities proposed to be utilized under this contract must have the capability of storing a minimum of-one (1) vehicle inside and a further capability of providing storage for a minimum of (25) twenty-five vehicles outside. Inside storage will be necessary only when so requested or directed by an authorized official of the City of Richfield as identified in these specifications. When a direction. is given to store a unit inside,- such. directions may be accompanied by certain instructions for security measures to be employed. The security responsibilities become the responsibility of the storing agent while the unit is in their keeping. 5. The Contractor performing under this contract shall assume all and full .responsibility for the conduct of his/her employees. The Contractor guarantees that all of the employees performing under this contract will be adequately trained in their profession, will respond promptly to all calls, will provide safe and adequate equipment (as herein specified), be clean and neat in appearance, use decent language; free of profanity, and treat- the. public courteously at all times. Request for service from the Richfield Police Department must be given priority by all dispatchers. Failing to meet any or all of the requirements of this section may result in cause for terminating the contract at any time as per the conditions specified for contract termination. 6. The Contractor will be solely responsible for loss or damage to any vehicle, including all equipment and contents,- from the time direction is given by the authorized City representative turning the vehicle over to the Contractor or his Agency and until such time as the vehicle is legally released to the registered or actual owner or legal agent thereof. . 7. The performing contractor must agree to maintain proper records of all vehicles received. The record keeping system shall meet the approval of the Richfield Public Safety Director and records are to be available at all times for inspection by authorized City officials. The records must include a copy of the police impounding report. A report shall be submitted monthly to the Richfield Public Safety Director detailing all vehicles stored or released during that current month. All contents of such reports shall meet the approval of the Richfield Public Safety Director. 8. All vehicles towed or impounded are to be released only upon proper authority of the Richfield Public Safety Director, except for private tows. 9. While performing under this contract and under these specifications, the Contractor or their designated representative(s) must be present at the storage facility six (6) days a week, Monday. through Saturday, between the hours of 8:00 a.m. and 6:00 p.m. (excluding legal holidays) and from 12:00 p.m. (noon) to 1:00 p.m. each Sunday and all legal holidays, for the purpose of releasing vehicles to authorized claimants. Police requested releases will be handled anytime. 10. It shall be agreed under this contract that motor vehicles will not be driven at anytime during the towing procedure. In the event that the vehicle is without tires or has. flat tires, the performing Contractor agrees to tow the vehicle without damaging the wheels and further agrees not to tow any vehicle on its rims, on wheels without tires, or on flat tires. 11. Upon arrival at the scene of a tow where a vehicle accident has occurred, the • performing Contractor, in addition to the physical removal of the vehicle, assumes full responsibility for removing any vehicular parts or other debris, excluding liquids and other commercial cargo, resulting from the accident. This clean-up is to be completed without any additional compensation. 12. The performing Contractor shall be' entitled to a charge for his/her towing and storage services pursuant to the fees submitted in the accompanying bid proposal. The Contractor shall agree that neither the City nor any Department thereof is responsible for any charges as a result of towing and/or storage and that the Contractor assumes all liability for any and all unpaid charges. NOTE: This Provision and these Specifications are in no way a law or regulation relating to "price, route, or service of any motor carrier with respect to the transportation of property," under 49 U.S.C. Sec. 14501(c)(1)(1997). 13. If an involved private owner/operator makes a timely request for a tow by other than our Contractor, such request shall be honored by the Police Department. In either instance, the owner/operator is solely responsible for all associated charges. 14. For vehicles identified by -the- Police Department as subject to forfeiture, and subsequently released to the Police Department pending the outcome of forfeiture. proceedings, the performing contractor shall indicate a flat rate charge per forfeited vehicle. The flat rate-shall include the towing, storage on the date of he tow, and three days of storage after the date of the tow. The flat rate applies to all cars, vans, small trucks, 4-wheel drive vehicles, utility vehicles, and motorcycles identified by the Police Department as subject to forfeiture to the City. 15. Should the Contractor fail to appear at a designated tow point within twenty (20) minutes after receiving a call for a tow, the City reserves the right to call another towing service to perform .the work. If the Contractor is called and is unable to respond due to conditions beyond their control, the authorized City officials shall be immediately so informed, and the right is • hereby reserved to call another service to perform the work. If, at any time, it becomes necessary for the City to request the services of another towing service for the reasons detailed above, the City retains the right to hold the Contractor retained under this contract responsible for any additional charges over and above the fee schedule recorded in this bid proposal. Such charges shall be assessed only if the response time is due to negligence or laxity on the part of the contractor, which negligence might include equipment failure. 16. The Contractor performing under this contract shall operate and maintain its parking and storage facility in compliance with the terms of this contract and all State and City applicable laws, ordinances, and rules and regulations that are presently in effect, or which may hereafter be adopted. 17. No alterations or modifications of the terms of this contract shall be valid unless made in writing and signed by authorized representatives of both parties hereto. 18. In the event of a breach by the Contractor of any terms or conditions of this agreement, the City shall have, in addition to any other legal recourse, the right to terminate this agreement forthwith. 19. Either party may terminate this contract upon the serving of such termination notice to the other, in writing, (6) six months prior to the intended termination date. 20.A copy of this contract, along with the authorized fee schedule, shall be posted in a conspicuous place in the Contractor's place of business. INSURANCE The successful Contractor shall not commence work under this contract until the specified insurance coverages have been obtained. The Contractor shall file, with the Richfield City Clerk, all certificates of insurance or documentation thereof indicating that all specified insurance have been obtained and are in full force. The City of Richfield shall be named as an additional insured on said comprehensive general liability policy. • The following coverages are required as minimums: 1. Public Liability Insurance: $1,000,000 Comprehensive General Liability (including assault and battery). 2. Business Auto Policy with all coverages (all vehicles), with $1,000,000 limits. 3. Garage Keepers' Legal Liability. 4. Workers' Compensation Insurance. covering all employees .of the Contractor, or his agents, working under this contract in accordance with the Minnesota Workers Compensation Law. The Contractor shall agree to provide to the Richfield City Clerk, 25 days prior written notice in the event any policy is canceled or a material change is effected- and each policy must contain a provision that the insurer notify the Richfield City Clerk immediately if a policy is canceled or a material change has been effected. PERFORMANCE BOND On or before the date that the contract between the City and the Towing service becomes effective, the Contractor shall file with the Richfield City Clerk an acceptable Corporate surety bond in the amount of $10,000, payable to the City of Richfield and subject to the approval by the Richfield City Attorney for the faithful performance of all duties and obligations imposed under the terms and conditions of the contract. r~ U n EXHIBIT B REVISED PROPOSAL FORM CITY OF RICHFIELD, MN • PROPOSAL FOR TOWING, IMPOUNDING AND STORAGE OF VEHICLES TO THE CITY COUNCIL, CITY OF RICHFIELD CONSUMER PRICE INDEX INCREASE 12/1/2002 12 MONTHS 12/1/2002 THROUGH ENDING 6/30/02 THROUGH 11/30/2003 2.8% 11/30/2003** Towing of impounded cars, trucks (under 1-1/2 ton capacity), motorcycles, all-terrain vehicles, snowmobiles and unattended utility trailers towed from within the City of Richfield...... $62.50 $1.75 $64.25 Towing charge for same from Outside the City of Richfield.... $62.50 $1.75 $64.25 Mileage charge for same.... $2.10 $.06 $2.15* Towing of trucks (larger than 1 ton capacity) within the City of Richfield.... $104.20 $2.92 $107.10* Towing charge for same outside the City of Richfield.... $104.20 $2.92 $107.10* Mileage charge for same.... $2.85 $.08 $2.95* USE OF WINCH WITH TOW Car (Per hour maximum of $64.75) $15.60 $.44 $16.05* Truck (Per hour maximum of $106.90) $26.05. $.73 $26.80* Use of Dolly(s).... $15.60 $.44 $16.05* Use of low-bed trailer or truck.... $78.15 $2.19 $80.35* (If Flatbed Required) Storage Charges First 24 hours or fraction thereof: A. Inside Storage $28.10 $.79 $28.90* B. Outside Storage $20.85 $.58 $21.45* Each Additional 24 Hours or Fraction Thereof: A. Inside Storage $28.10 $.79 $28.90* B. Outside Storage $20.85 $.58 $21.45* Forfeitures • Vehicles forfeited to the City of $130.00 $3.64 $133.65* Richfield *Cents are rounded AGENDA SECTION: Consent AGENDA ITEM # 3A REPORT # 2 7 9 ~' STAFF REPORT CITY COUNCIL MEETING NOVEMBER 26, 2002 • n U REPORT PREPARED BY: KATHY FARRIS, HUMAN SERVICES PLANNER/COORDINTOR NAME, TITLE REPORT PRESENTER: SAMANTHA ORDUNO, CITY MANAGER -'~ NAME, TITLE REVIEWED BY CITY MANAGER: t~ _ .~.~; - ~ ,.~, , ~ ITEM FOR COUNCIL CONSIDERATION: Consideration of a resolution authorizing the Amendment to LCTS Sub-contractor Agreement with Hennepin County and authorizing the Mayor and City Manager to execute the Amendment to LCTS Sub-Contractor A reement. I. RECOMMENDED ACTION: By motion: Approve the attached resolution authorizing the Amendment to LCTS Sub- contractorAgreement with Hennepin County and authorizing the Mayor and City Manager to execute the Amendment to LCTS Sub-Contractor A reement. II. BACKGROUND The City of Richfield entered into a revised LCTS Subcontractor Agreement with Hennepin County on November 13, 2001 to continue to act as the fiscal agent for LCTS revenue generated on behalf of the Richfield Community. Hennepin County, as administrator of LCTS funds for Family Service and Children's Mental Health Collaboratives within Hennepin County, has added an amendment to the LCTS Sub- ContractorAgreement (see attached). III. BASIS OF RECOMMENDATION • The City of Richfield is in compliance with the amendment to the LCTS Sub- ContractorAgreement through its partnership with the Hennepin South Services Collaborative (HSSC) which provides general liability for program activities of the Family Services Collaborative. 1126LCTS A. POLICY • The City of Richfield is part. of the HSSC Joint Powers Agreement, of which one purpose is to establish and operate a Family Services Collaborative. • B. CRITICAL ISSUES • The amendment to the LCTS Sub-Contractor Agreement requires that the City of Richfield provide a separate general liability policy or ensure that such coverage is provided through another partner in the collaborative that includes all participants in the activities of the Family Services Collaborative. C. LEGAL • The City of Richfield is in compliance with the Amendment to the LOTS Sub- contractorAgreement through its partnership with the Hennepin South Services Collaborative (HSSC) which provides general liability for program activities of the Family Services Collaborative. IV. ALTERNATIVE RECOMNIENDATION~S~ • The Council may decide not to approve the amendment to the LCTS Sub-Contractor Agreement and cease acting as fiscal agent for Richfield generated LCTS revenue. V. ATTACPIMENTS • Resolution • Amendment to LCTS Sub-contractor Agreement • • HSSC Certificate of Liability Insurance VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None. • RESOLUTION NO. A RESOLUTION AUTHORIZING AMENDMENT TO LCTS SUB-CONTRACTOR AGREEMENT WITH HENNEPIN COUNTY AND AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECTUE THE AMENDMENT TO LCTS SUB-CONTRACTOR AGREEMENT WHEREAS, the City of Richfield currently acts as fiscal agent to distribute LCTS revenue generated by the Richfield as part of the South Hennepin Family Services Collaborative; and • WHEREAS, the City of Richfield complies with the amended agreement through its partnership with Hennepin South Services Collaborative, which provides general liability coverage for program activities of the Family Services Collaborative. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Richfield enter into the Amendment to LCTS Sub-Contractor Agreement with Hennepin County. BE IT FURTHER RESOLVED, that the Mayor and City Manager be authorized to execute the Amendment to LCTS Sub-Contractor Agreement. Passed by the City Council of the City of Richfield, Minnesota this 26th day of November, 2002. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk • 11/18/2002 11:25 y5zyz~.~nd1 ^~~- •~-"- "` • AMENIDMENT TO LCTS SUB-CONTRACTOR AGREEMENT Contract # A11931 This Agreement is entered ant of H Human Services Co p"~~ To P~'c'~ a Rn h Local Coltabarative Tirne certain Minnesota Departm 23, 1998, and amended May 24, 200'!, Study (hereinafter the "LCTS Contract") dated as of NpvemberS (hereinafter the "State") and Hennepin between the- State of Minnesota DepartmeaEof hiu~sa~ and Ctiy t~f ~d #hereinafter-the "Sub-Contractor"). County (hereinafter the "County"), IT IS HEREBY AGREED that the certain Agreement between the above-named parties covering the purchase of administrative and social services, ao~nededn~ac ordance with tl~ie prov~isronsoset form below: 2003, and as subsequently amended is hereby Clause I!, Ill and IV shalt be deleted and the following substituted: • • 2. INDEPENDENT CONTRACTOR The Sub-Contractor shall select the means, method, and- manner of perf°rming the services herein. Nothing is intended or should be construed in any manner as creating or establishing the relationship of co-partners between the pa-iies hereto or as constituting the Sub-Contractor as the agent, representative. or empbyee of the County for any purpose or In any manner whatsoever. The dub-tronttador is to be and shad remain an independent contractor with respect to all services pertormed under this Agreement The tSut ~rnrrr~irtg a eN~ ender this has or will secure a~~own expense all personnel required- pe Agreement. Any and all personnel of the Sub-ContraE~~~o~~er~+is ~ ~t the performance of any work or services requu~ed-by not be considered employees shall have not contractuat relationship wim the-Cou~tY,m~arise under the Unemployment of the County- Any and all claims that ~ of Minnesota on behalf of said COrrtpensatron Ad or Workers' Compensation-Act {i~~°StSte ~ InCluding, Without r>mitattort,. personnel, aristn~.out of employment or alleged amp Ymen nts, coMra~om, or claims of discriminatitrn against the Suis-Contractor. its ofr~cers, age employees shalt ia- no way be the responsibility of the Co~ ~ trarmiess Kom any defend, indemnify; aril hold the County, its officers, age~a and all such claims irrespective of any determination of any pertinent tn`bun~al, agency, boob, 1 or other persoffs shaft neither ra4vire-nor lie entitled to commission, or eourt Such persvnrK r from the .County, induding, any, compensation, rights, or benefits of any Idnd whatsoeee without limitation, tenure rights. medical and hospital care sick and~adcpaEtleave, Workers' Compensation, Unemployment Insurance, disability, severance pay, 3, CLAIMS AND.INDEMNtTY a. Indemnif'catio :The Sub-Contractor agrees to defend, ~Gability~ laims. odamagesu costs. officers, agents and employees harmless from any fees. The judgments, or expenses. including but -not iimited-.to_ reasonable attorney provisions of this-paragraph shall survive the termination of this Agreement b, Insurance: The Sub-Contractor does further agree that in order to Protect itself, as well as the County under me indemnity provisions hereiaa$et torth, it will at all times during the terrYr of~his Agreement have and keep in force oat sm off ~ ~amount~ not Hess than One umbrella commercial general liabiliij/ insurance. p -cY Page r of 7 11/18/2002 11: z5 ~~z~«.~n~sl ~ ~-'-"' Million {$1,000,000) Dollars for property damage arising from one occurrence, One Million s arisin from one oca.irrence, ($1,000,000) Dollars for total bodily injuries andlor damagQ 9 and One Million ($1,000,000) Dollars for total personal injures andlor darrrages arising from one occurrence. The policy shalt also include contractubal Nab~lity~o endorseme~ or Hennepin County, its officers, agents, and empbyees Y Pe certificate acknowledging this Agreement between the Sub-Contractor and the County. All Certificates of Insurance shalt. provide that the insurance company shalt give the County thirty (30) days'-Prior written rtcrtice of cancellation, non-renewal, or arty material changes in=the. polio 1. The Sub-Contractor agrees to provide a separate general liability policy or rider to its current-policy, or ensure-that such coverage isprovided through another partner or partners in their collaborative, that includes alt partiapar>ts in the activities of ees,SC or CMHC collaborative, including the officials of it's governing council, employ volunteers and program participants. Such Policy or rider shall be consistent with the coverages described in 3.b. at~ove. 2. The Sub-Contractor agrees to provide general liability coverage, or ensure that such coverage is provided through another partner or paltnefs in their collaborative, for the program activities of the FSC or CMHC collaborative at the coverage levels described in 3.b. above. 3. The Sub-Contractor will provide a Certificate of insurance to Hennepin C as tl~ie clearly evidencing the required coverages and naming Hennepin County certificate holder and as an addfional insured under the general liability coverage. d. SUCCESSORS, SUBCONTRAC?ING AND ASSIGNMENTS a. The Sub-CONTRACTOR shall not assign, subcontract, transfer or pledge this contract. or the fiscal agent and case management responsibilities andlor monies d e or to performed hereunder. yvhether m whole or fn part, nor assign arty become due to it, hereunder without the prior written consent of the COUNTY. ees to develop a subcontr~n9 Process wdh ~ review and b. The Sub-Contractor agr' ~~ cr their ~ represerdative. The County has the approval of their govem'ng ova that Process upon request authority to reviewandaPPr c. Permission to sutxontract, however, shall under rto circumstances relieve the Sutr CONTRACTOR of its liabilities and nslbie for the acts~omisslons, annd failure oof irts Sub- CONTRACTOR shall be fully respo red contractual services, and of subcontractors in the performance of the herein speclf person(s) directly or ir>dirertiy employed by subcontractors. Contracts between the Sub- CONTRACTOR and each subcontractor shall requ}re ~ the subcontr~ctat~ services be performed ir- acxrotdartce with all the terms and condit~ns hsu~ntractor ~~~erms and conditions contained herein shall be incorporated iMaany 5. DUTIES OF SUB-CONTRACTOR A. It is understood and agreed that the Sub-Contractor shalt~ct with the County and others in providing administrative andlor case managementseMCes desig~d'R~~ ~ and case children access health or health related services andlor provide management services for children at risk o ^fos~ ~ ova Childr es Mental Health d XIX of the Soria( Security Aet, and in carry g m ~~ in the LCTS Contract. CaUaborative andlor a Family Seniices Collaborative ~~~ into by the State and the The terms of said LCTS Contract, as may be ~ by re~r~ herein, and t#-is Sub- Countyfrom time to time, are, therefore, incorpo Page 2 pf 7 , 11/ lt1/ Zk7gL 11 : L7 7~L7LLJC101 ,.-+-~~ ^"~ "~ Corrtractor Agreement shall tie interpreted wherever possible to implement the tem>s of said • LCTS Contract. B. Participation in a Family Services Collaborative and/or Children's Mental Health Collaborative: 1. The Sub-ContractorshaAbea hall partiapant in estate-approved Family S®rvices Collaborative and/or the-state-approved Hennepin County Children's Mental Health Collaborative that shap~-~a=traember of The Alliance. Rarticipeftion in such shalt be documented by the Sub-Contractor's participation in a~ ao9a~ FS>~~/oar memorandum of understanding. or a joint powers ag CMHC's partners. . 2. Sub-Contractor agrees to abide by the written policies of any Children's Mental Health Collaborative andlor Fatuity Services Collaborative in which it is a participating member and by the written policies of 'The Alliance. 3. Sub-Contractor shell provide a written description to Contractor of its participation in a Children's Mentat Health Collaborative and/or a Family Services Collaborative and that FSC's or CMHC's membership in The Ailianee..Sub-Contractor will also identify current or proposed staff who will provide services within any FSC andlor CMHC and designate the appropriate representatives to any FSC andlor CMHC. ~ 4. Sub-Contractor shalt provide a written description to Contractor of the target population and outcome based indicators for all of Sub-Contractor'st~ats within a FSC and/or CMHC. C. When Sub-Contractor seijres as Fiscal Agent for Administering (disbursing or spending) LOTS Revenues. • 1. On behalf of the FSC and/or the CMHC of which it is a member,~ihe Sub-Contractor shall identify a phan or system for measuring a base level of expenditures from which level any expansion of services will then be measured. a. IfSub-Contractor participates in a Family Sen~ices Collaborative, the proposed base shall be based-upon educational, social, health or health-related services to families andlor children ror>sisteM with Mlnn. Slat. $ectiot- 25tiF.1 ~, Sabd. 1, para. b, clause 3, for the period=July 1, 1993 to June 30, 1994, or as othenr+rise specified by the State in the LCTS Contract. b. if Sttb-Contractor Participates in a Children's Ntental Heafth.CollaboratNe, the proposed base shall be based on services for children with emotional or behavioral disturbanc~coent with Mlnn. Scat. Section 245.492subct 2, and Minn. Stet: Section 245.4932. subd.l, para. 3. or as otherwise specified by the State in the LCTS Contract, for the-accounting period cbsesTto the Stat~of Minnesota fiscal year 1993. 2. On behalf of the FSC andlor CMHC of which it is a member, the Sub-Contractor agrees that it wilt not permit any decrease in expend+tunas which are base expenditures except as permitted in M'u~n. StaL Chapter 256, and shall provide a written repoR to Sub-Contractor ofany decrease-oE-ehafl9e in funding within thirty days-of frnaF aRProval of such change. a. Sub-Contractoragrees and understands that any change in funding related to base expenditures may result in a loss of funding to a FtSC~tM eCn baseepend turaesr and the County. TMne-is of the essence in reporting X- n9 3. Sub Contractor agrees that all LCTS administered funds_shaH be expended under official authority of the Sub Contr;actor'~ governing body either through formal administrative board action tp end fundswithin their own operations or ~Furgthe Sub Contractor contracts or gramtagreements with approved subcontractors: . Pagr3 of 7 agrees to comply with Clause 4; paragraphs a., b.. and c. in regarcis to subcontracting gON~f~., 4. Sub-Contractor agrees that base expenditures and enhanced expenditures shall be measured and reported as specihect by the County and/or State in accordance with the terrns of fhe LOTS Contra. S. Sub=Contractor agrees that the County may withhold or deduct from any future payment, a pro rata share Qf any generic disaNowance irtlposed on the County by the State or the Federal govemment relating to this program, or any repayments which are specificafiy attributable to fhe Sub-Contractor or any other memt~ers of the Sub-ContractEir's FSC and/or CMHC. to all other cases~he CauntyshaN give written notice of dtsaliowance~nd oavment shall be-due from Sub-Gontractnr to the County wittsin thirty (30) days- 6. The Sub-Contractor Shall provide vrritten information: reports and data to the County as needed to cornpiete tE ~e FSC's and~or ClsIHC s reporting requirements to the State under . the LCTS Contract. lnformstionCe u~ementimposed by the Stat~n the LCTS Contract. . (10j days prior~o final reporting q a, The Sub-C=oniractar. shall designate a representatve for any training requirements imposed by the County and/or State of Minnesota under the LCTS Contract, and permit required-training of alE Personnel as requ~ed in the LCTS Contracf- b. With regard to any reporting requirements herein. time is of the essence. The Sub- . Contractor agrees and understands2hatlbe County is acting on behalf of the Famiry ServicesColiaboratlvesand Chi~ren's Mental Health Collaborative in Hennepin County and In .reliance upon the .Sub-Contr~tor's performance- in P-ovidm9 any information, nsports-or data. Failure m act in a timely manner will result in a loss of funding to the FSCs, CMHC, the Sub-Coniraetvr, anctthe County. • D. When Sub-Contractor serves as an Rgent for Claiming (earning) LCTS Revenues: The Sub-Contractor steal! provide written information, reports an~n~ `oo m State of~ needed to complete the FSC's and/or CMHC's reporting requir Minnesota under the LCTS Contract Infomiat"wn, reports and-data shall be submitted to the County tart (td} days-prior to final reportingrequ~ment imposed by the State in the LCTS Contract Late or amended cost reports recaeivet# ~- the County shah be added to subsequent claims for federal reimbursement: submit ffi State approval. however, no reports uviil be considered more -than one year past the due date. a. The Sub-Contractor shall designate a representative for any training requirements imposed by the State of Minnesota under the LCTS Contract, and permit required training of all personnel as required In the LCTS Contract b. With regard to any reportmgrequirements herein, tame is of the essence. The Sub- Contractoragrees and understands that the County is acting on behaff of the FSCs and CMHC and in reliance upon the Sub-Contra's performance in providing any information. reports or data. Failure to act in a t:Rnelymanner will result ~n a lass of funding to the FSCs, CMHC, the Sub-Coatr'actor, and theCount~ 2. The Sub-Contractor agrees fo report sit expendffures according to the accounting system required by the State of MN in the .CTS Contract. 3. Sub-Coritractar agrees-thatihe County n~w+tt~hoid or~duct from any future payment, a pro rata share of any generic disallowance imposed on the County by the State or the Federal govemment relating to this progrartr, saF: any .r~yrnents which are attributable tb the Sub-Contractor: In all other cases the County shall give written notice of disallowance and payment shalt be clue trorn S~~onVactor to thg.Gounty within thirty (30) days. Page 4 of 7 11/18/2002 11:15 y51y'L"Ljl~fil r+»~ "'""'- "" • 8. DUTIES OF THE COUNTY A. The County shall act asover-all fiscal agent for the LCTS, The Affiance, and ifie Children's Mesta! Health Collaborative and will receive and distribute, according to the writteuar~terges of the Family Services Coltaboratives and Children's Mental Health Collaborative, any q IY reimbursements of-LCTS funds made by the federal government through the State of Minnesota. Ttte County will maintain ar-i integrated fund from ~n+hich disbursements are made according to anywriiiett:pEiiicias of the FSCs and CMHC. - B. The County shall make aft required reports to the State, FSCs and CMHC according to the terms of the i:CTS Contract Sub-Contractor' agrees and understands that the Couni must receive all data, reports and information (from the Sub-Contractor) in a timely manner in order to comply with the rtgporting requirements of the LCTS Contract 7. ADDITIONAL TERMS A. Sub-Contractor agrees and understands that according to the terms of the LCTS Contract, the State of Minnesota will withhold a five percent (5%) administrative fee from quaRerly reimbursements, and that Hennepin County may also withhold up to a five pe~ terms of the administrative fee from quarterly reimbursements to FSCs and CMHCs (per After the currently approved LCT~Fnancing Frarttework forCotlaboratives in #fertnepin County). end of the County's frscal year, the County shall return any unused portion of thttte Smote 's administrative fee and-BnlFrelmbursementsofadmine fees-weld by B. D'~saitowances, Sanctions, and/or Audit Exceptions: 1. Sub-Contractor agrees and understands that the County maya~~~ to a FSCeandlor Minnesota-for any disallowance, sanction, oraudit exception CMHC or its individua! members, including federal fiscal disallowances or sanctions cased • upon the FSC`s or CMHC's-implementation of the LCTS or a-statewide random sample, or based upon a FSC and/or CMHC or ifs individual members' failure to report any data or expenditures in a timely manner, or failure to-identify or report such expenditures according to the terms of ttte LCTS Contract 2. Sub-Contractor agrees to reimburse the County for arty repayments the County must make to the State of Minnesota which are attrtbutablrwta-the SulrConNa~ the County by the Contractor`s pro-rata share of any generic disallowance ~mposed State or Federal goverrtmentrelating to this. program. 3. Sub-Contractor agrees that the County may withhold or deduct from any future payment to t due from the Sub-Contractor to the the SulrContractor, the amount ofthe repaymen County. if such withholding is not a~~~~ ~°e"rypayment shall be due from Sub Sub-. Contracthr of disallowance and pay Contractor to the County within thirty (30) days. rng initiated by the County, 4. Sub-Contractor agrees to assist in any faict-firtdtng iKO~ State, or Federal government pursuant to this program• C. This Agreement shah be effective ftom the date of execut'i mee ~° alone helre remain in effect through December 31, 2005 unless canceled according p D. This Agreement may be amended only by written agreement of the parties hereto. This Agreement may tie canceled upon thirty- (30) day's prior written notice by either party. E. The undersigned end aiE Sub-Contractors (and their principals): fpr garment, declaredineiigible or 1. Are sat presently debarred, suspended, proposed • Page 5 of 7 . 11f 1tl7 LCJYJt 11:1 , 77L 7t L.7Ua1 voluntadly excluded-from transacting business by or with any federal, state or local . govemmentai department or agency: and 2. Have not within athree-year period preceding this Contract: a. Been convicted of or had a civil judgement rendered against them for commission of fraud oc a criminal offense in connection with obtaining, attempting to obtain or performing a public (federal,-state yr local} transaction ar contract: b. Violated any federal or state- antitrtrsi statutes: or c. Committed embeutemeat, !! forgery, bribery, falsd'ication or destruction of records4 making false statements or receiving stolen property; and 3. Are not presently indicted or otherwise criminally or civilly charged by a governmental entity for: a. Commission of fraud or a crirninai offense in connection with obtaining, attempting to obtain or performing a public (federal, state or focal) transaction; b. Vioiatrng any#ederai or state antitrust statutes: or a Commiitingembezzlement, theft, forgery. bribery, falsification Or destruction of records, making false statements or receiving stolen properly. This Amendment shall be effective October 7, 2002 through December 31, 2005. Except as hereinabove amended, the terms, conditions, and provisions of said contract shall roman in full force end effect It is understood and agreed that the entire Agreement between the Parties is contained rn the ongmal Agreement and its subsequent amendments as cited above, and a5 amended herein, and tha~ 1All items negotiations and agreements between the parties re~trng to the subject hereof are supersed referred to in this Agreement are incorporated by or attached and'are deemed to be part of this Agreement. Page 6 of 7 • • 11/ ltl/ Zl7f71 11: ~~ 77L7LL3U01 ~ ~~+-+~+ ^"'- "" COUNTY BOARD APPROVAL SIJB-CONTRACTOR, having signed this contract, and the Henn2002 and pursouan o~ such Commissioners having duly approved this contract an the day of -- approval, the proper County officials having signed this contract, the parties hereto agree to be bound by the proviswns herein set forth. Approved as to legality, form. and execution. Assistant County Attorney Date: COUNTY OF HEIyNEPIN STATE OF MINNESOTA ey: Chair of Its County Board And: gssistanUCounty Administrator ATTEST: peputy/Clerk of County Board gUg-CONTRACTOR Entity Name: 8y: Name and Title Print date: September 25, 2002, (JH), Revised Date: Febnaary 26, 1998, March 23, 1998, Juty 13, 2001, August 29, 2001, September 17, 2001, Octaber , 2001, September 23, 2002 . page 7 of 7 THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITS LTR DATE (MM/DD/YY) DATE (MM/DD/YY) A GENERAL LIABILITY CMC22469 2/16/02 2/16/03 GENERAL AGGREGATE S ~oQQQ00 X COMMERCIAL GENERAL LIABILITY PRODUCTS -COMP/OP AGG S 1 OOOOOO X ~ CLAIMS MADE OCCUR PERSONAL & ADV INJURY S ~ 000000 OWNER'S & CONTRACTOR'S PROT EACH OCCURRENCE S 1000QQQ FIRE DAMAGE (Any one fire) S 50000 MED EXP (Any one person) S 1000 A AUT OMOBILE LIABILITY CMC22469 2/16/02 2/16/03 COMBINED SINGLE LIMIT S ANY AUTO ,~ 000000 ALL OWNED AUTOS BOOILY INJURY SCHEDULED AUTOS IPer person) S HIRED AUTOS BODILY INJURY S X NON-OWNED AUTOS (Per accident) PROPERTY DAMAGE S GARAGE LIABILITY AUTO ONLY - EA ACCIDENT S ANY AUTO OTHER THAN AUTO ONLY: EACH ACCIDENT S AGGREGATE S EXCESS LIABILITY EACH OCCURRENCE S UMBRELLA FORM I AGGREGATE S OTHER THAN UMBRELLA FORM S . A WORKERS COMPENSATION AND 0200079514 ~ 1 /O1 /02 ~ /Q1 /Q3 V'/C STATU- OTH- TORY LIMITS ER EMPLOYERS' LIABILITY EL EACH ACCIDENT S THE PROPRIETOR/ INCL ~ EL DISEASE -POLICY LIMIT S ~ 000000 PARTNERS/EXECUTIVE OFFICERS ARE: EXCL EL DISEASE - EA EMPLOYEE S A OTHER CMC22469 ~ 2/16/02 2/16/03 DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL REMS CERTIFICATE HOLDER IS ADDITIONAL INSURED.AS RESPECTS THE GENERAL LIABILITY SOUTH HENNEPIN FAMILY SERVICE COLLABORATIVE DBA FAMILINK IS INCLUDED AS NAMED INSURED CITY OF RICHFIELD MR. DENNIS JOHNSON 6700 PORTLAND AVENUE SOUTH RICHFIELD MN 55423 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL ~ 0 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND ~r1PON THE COMPANY, ITS AGE1~1TS _ OR REPRESENTATIVES. AUTHORIZED R~~//~ IVE ,./~/ C~~ ~ ~`~jL.~,.