09-24-02 agendaCITY OF RICHFIELD, MINNESOTA
TUESDAY, SEPTEMBER 24, 2002
SPECIAL CITY COUNCIL WORKSESSION
COUNCIL CHAMBERS
6700 PORTLAND AVENUE
5:00 P.M.
Call to order
Roll call
Discussion related #o noise wall at 77th Street near P_ortland_Avenue .:
2. Discussion related to on-street parking ban in Richfield
3. .Discussion related to Richfield's airport noise acquisition program strategy
Adjournment
REGULAR CITY COUNCIL MEETING
COUNCIL CHAMBERS
6700 PORTLAND AVENUE
6:30 P.M.
AGENDA
• INTRODUCTORY PROCEEDINGS
Call to order
Roll call
Open Forum (15 minutes maximum)
Each speaker is 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 September 12, 2002
PRESENTATIONS
• 1. Presentation of proclamation designating Women of Today Week, September 23-
29, 2002
2. Presentation of proclamation designating Fire Prevention Week in Richfield,
October 6-12, 2002
• Notes:
COUNCIL DISCUSSION
Notes:
AGENDA APPROVAL
3. Council approval of agenda
CONSENT CALENDAR
4. Consent Calendar contains several separate items which are acted upon by
the City Council in one motion. Once the Consent Calendar has been
approved, the individual items and recommended actions have also been
approved. No further Council action is necessary. However, any Council
Member may request that an item be removed from the Consent Calendar and
placed on the regular agenda for Council discussion and action. All items
listed on the Consent Calendar are recommended for approval.
• A. Consideration of approval of resolution appointing additional election judges for
November 5, 2002 General Election S.R. No. 220
B. Consideration of approval of resolution authorizing establishment of Health Care
Savings Plan for eligible City of Richfield employees S.R. No. 221
C. Consideration of approval of resolution amending membership listing of South
West Fire League Mutual Aid Association S.R. No. 222
D. Consideration of approval of resolution certifying delinquent sewer and water utility
accounts to County Auditor S.R. No. 223
E. Consideration of approval of resolution levying special assessment for nuisance
abatement S.R. No. 224
F. Consideration of approval of purchase and installation of new evaporative
condenser for Rink One at Richfield Ice Arena from Gartner Refrigeration & Mfg.
Inc. in amount of $42,034.85 S.R. No. 225
G. Consideration of approval of new therapeutic massage license for Anne Thurber,
7515 Upton Avenue S.R. No. 226
Notes:
• 5. Consideration of items, if any, removed from Consent Calendar
RESOLUTION
6. Consideration of resolution decertifying Lyndale-HUB-Nicollet Tax Increment
Financing District
Staff Report No. 227
OTHER BUSINESS
7. Consideration_of designating.City of Richfield official voting .dehgate...andcaltern~te
voting delegate for National League of Cities annual Congress of Cities-business
meeting on December 7 in Salt Lake City, UT
Staff Report No. 228
Notes:
8. City Manager's report
Notes:
• 9. 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 sufificient time for others. Comments are to be an opportunity to address
the Council on items not on the agenda.
Notes:
10.Adjournment
Auxiliary aids for individuals with disabilities are available upon request.
Requests must be made at least 96 hours in advance to the Administrative
Services Director at 612-861-9702.
•
•
AGENDA SECTION: Other BuSirie$$
AGENDA ITEM # 7
REPORT 1t 228
~~ STAFF REPORT
CITY COUNCIL MEETING
SEPTEMBER 24, 2002
REPORT PREPARED BY:
CHERYL KRUMHOLZ, ADMIN. ASST.
NAME, TITLE
REPORT PRESENTER:
SAMANTHA ORDUNO, CITY MANAGER
NAME, TITLE
REVIEWED BY CITY MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of designating the City of Richfield voting and alternate voting delegates for the
National Lea ue of Cities-annual Con ress of Cities business meetin on December 7, 2002.
I. RECOMMENDED ACTION:
By Motion: Designate the City of Richfield official voting delegate
and alternate voting delegate for the National League of Cities annual
Congress of Cities business meeting on December 7, 2002.
II. BACKGROUND
The National League of Cities (NLC) annual Congress of Cities conference is
December 3-7, 2002 in Salt Lake City, UT. The annual business meeting will be
held on December 7. Under the bylaws of the NLC, each direct member city is
entitled to cast one to 20 votes, depending upon the city's population, through its
designated voting delegate at the annual business meeting.
Richfield is eligible to cast one vote. To be eligible to cast the City's vote, each
voting delegate and alternate must be designated by the City. NLC's bylaws
expressly prohibit voting by proxy. Thus, the designated voting delegate must be
present at the annual meeting to cast the City's vote.
• NLC will send a special edition of the Policy Informersummarizing proposed
National Municipal Policy amendments and proposed resolutions.
0924n1c
The City Council should determine who will attend the NLC conference and be the
• designated voting delegate at the business meeting. The delegate must be present
at the annual business meeting to cast the City's vote.
III. BASIS OF RECOMMENDATION
A. POLICY
• Richfield is a member of the National League of Cities.
• Richfield is eligible to cast one vote at the annual business meeting
• A designated voting delegate must be present at the business meeting
to cast the City's vote.
B. CRITICAL ISSUES
• To establish Richfield's credentials and facilitate voting delegate
preparation for the Congress of Cities, a voting delegate designation
must be submitted to the NLC not later than October 11, 2002.
It is important for the City to vote on NLC policy amendments and
proposed resolutions.
C. FINANCIAL
• N/A
D. LEGAL
• N/A
IV. ALTERNATIVE RECOMMENDATION(S~
• Do not designate a voting delegate.
V. ATTACFIMENTS
• N/A
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
r~
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J
AGENDA SECTION: Resolutions
AGENDA ITEM #
REPORT # 2 2 ~
STAFF REPORT
CITY COUNCIL MEETING
•
SEPTEMBER 24, 2002
KATIA MEDVETSKI,
REPORT PREPARED BY: REDEVELOPMENT SPECIALIST
NAME, TITLE
REPORT PRESENTER: BRUCE PALMBORG,
COMMUNITY DEVELOPMENT DIRECTOR
NA,~ TITLE
DEPARTMENT DIRECTOR REVIEW: ~~~~
REVIEWED BY CITY MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a resolution to close out and decertify the Lyndale-Hub-Nicollet Tax
Increment Financing District.
I. RECOMMENDED ACTION:
By Motion: Adopt the attached resolution to decertify the Lyndale-
Hub-Nicollet Tax Increment Financing District.
III. BACKGROUND ~
On October 15, 1975, the Richfield Housing and Redevelopment Authority (HRA)
established the Lyndale-Hub-Nicollet (LHN) Redevelopment Plan and Commercial
Improvement Program. The City Council took similar action in November 1975.
This was the City's first redevelopment project established under the direction of the
City's newly formed municipal housing and redevelopment authority. It was a
pioneering effort in the suburbs of the metropolitan area in 1975. Almost 27 years
later, the goals and objectives of this endeavor have come to fruition and the HRA is
able to close out and decertify this tax increment financing district.
094LHNdecert.doc
At a special meeting on August 5, 2002, the HRA directed staff to begin the
decertification process. HRA staff and financial consultants proposed using
available revenue to payoff remaining LHN bonds earlier than scheduled, thus
enabling the HRA to decertify the district.
On September 16, 2002, the HRA adopted a resolution to close out the LHN district.
Once decertified by the county, a preliminary estimate under current laws is that
approximately $1.4 million of increment could be realized by the various taxing
jurisdictions. The City's portion could be approximately $400,000 to $425,000
beginning in 2003.
The LHN district has proved to be a successful redevelopment project area of the
community, which over time has had more than $60 million of private and $24
million of public investment. The fruits of this undertaking are evident in many
ways, especially in the following developments:
• K-Mart (1979)
• Lyndale Business Center (1979)
• Municipal Liquor Store (1979)
• Lyndale Garden Center (1980)
• Townhomes of Wood Lake (Coach Homes) (1981)
• Public Sculpture Plaza (1981)
• Lake Shore Drive Condominiums (1982)
• Lyndale Hardware (1982)
• City Project 705 Public Improvements (1983)
• Richfield Shoppes renovation (1984)
• Hub Shopping Center improvements (1984)
• Woodlake Point Condominiums (1986)
• Market Plaza and Village Shores Apartment (1986)
• Oreck Plaza renovation (64th &Lyndale) (1986)
• Richfield Bank & Trust /Richfield State Agency expansion (1986)
• Hub Shopping Center expansion with Rainbow Foods (1991)
• Wood Lake Medical Clinic (1994)
(Note -the year dates listed above indicate project's completion date).
Although the LHN is closing out an era, another has begun; Oaks on Pleasant, The
Pines, Woodlake Centre, Gramercy Senior Housing Cooperative, the combined
Lyndale Garden Center and Lyndale Hardware and the soon to be City Bella.
III. BASIS OF RECOMMENDATION
A. POLICY
• City policy is to close out a tax increment as soon as debt obligations can
• be met. This is the second close out; the first, the TIF project at 66th
Street and Cedar Avenue.
• The City Council is being requested to undertake parallel decertification
action as it is the municipal governing body of the HRA.
B. CRITICAL ISSUES
• Upon completion of all tasks necessary to close out the LHN District, a
request will be made to Hennepin County to officially decertify the LHN
district.
C. FINANCIAL
• Outstanding bond payments will be made prior to year 2003.
• Under current property tax laws, the preliminary estimate is that the taxing
jurisdictions could share approximately $1.4 million dollars in revenue
each year beginning in 2003. Richfield could receive approximately
$400,000 to $425,000.
A. LEGAL
• The recommended actions taken to close out the LHN District are being
undertaken in conjunction with bond counsel's and fiscal consultant's
opinions.
IV. ALTERNATIVE RECOMIVIENDATION(S~
• Do not close out the LHN District and continue to make bond payment as
scheduled. However, this would defeat the goal of closing out TIF districts as
soon as possible and be contrary to HRA action taken on September 16, 2002.
V. ATTACHIVIENTS
• Resolution approving the decertification of LHN District.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Sid Inman, Ehlers and Associates, Inc.
•
• RESOLUTION NO.
RESOLUTION APPROVING THE DECERTIFICATION OF THE
LYNDALE-HUB-NICOLLET TAX INCREMENT FINANCING DISTRICT
OF THE CITY OF RICHFIELD
WHEREAS, on November 24, 1975, the Lyndale-Hub-Nicollet Tax Increment
Financing District (the "LHN District") was created within the Richfield Redevelopment Project
Area (the "Project"); and
WHEREAS, as of the date hereof all bonds and obligations to which tax increment
from the LHN District have been pledged have been paid in full or defeased and all other
costs of the Project have been paid; and
WHEREAS, the City Council of the City of Richfield desires by this Resolution to
cause the decertification of the LHN District after which all property taxes generated by
property within the District will be distributed in the same manner as all other property taxes.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield
that the LHN District should be deemed decertified as of December 31, 2002, and that the
City's staff is authorized and directed to transmit a copy of this resolution to the County
Auditor of Hennepin County with a request that the auditor decertify the LHN District as a tax
increment district and to remit no tax increment from the LHN District to the City of Richfield
• after December 31, 2002.
Adopted by the City Council of the City of Richfield, Minnesota this 24th day of
September, 2002.
Martin J. Kirsch, Mayor
Attest:
Nancy Gibbs, City Clerk
•
J STAFF REPORT
AGENDA SECTION:
AGENDA ITEM #
REPORT #
CITY COUNCIL MEETING
C.
•
SEPTEMBER 24, 2002
Consent
4G
226
REPORT PREPARED BY: BETSY CxRISTENSEN, ADMINISRATIVE
SUPPORT MANAGER
NAME, TITLE
REPORT PRESENTER: DAN SCOTT, DIRECTOR OF PUBLIC
SAFETY
NAME, T/TLE
DEPARTMENT DIRECTOR REVIEW:
J ` SIGNATURE
REVIEWED BY CITY MANAGER: ~ _
ITEM FOR COUNCIL CONSIDERATION:
Consideration and approval of a request for a new therapeutic massage license for Anne
Thurber. 7515 Upton Avenue.
I. RECOMMENDED ACTION:
By Motion: Approve a request for a new therapeutic massage license
for Anne Thurber, 7515 U ton Avenue.
II. BACKGROUND
On August 5, 2002, Anne Thurber submitted an application for a new therapeutic
massage license. She would like to operate the business in her home at 7515
Upton Avenue. Licensing and proof of liability insurance have been submitted.
Ms. Thurber has applied for a therapeutic massage business to be based in her
home due to the fact that she has a disability that makes her unable to work outside
the home. Her disability is agoraphobia, which prevents her from being comfortable
in public places. As a result, she is requesting to be allowed to operate a
therapeutic massage enterprise out of her residence. The current City ordinance
only allows therapeutic massage enterprise businesses in C-2 zoned districts. The
Minnesota Disability Law Center is acting as an advocate for Ms. Thurber and has
advised staff that cities may not discriminate against a disabled person related to
0924MassageLicense
zoning issues. Staff was advised by the City Attorney to request additional
• information from Ms. Thurber and proof of her disability from the Minnesota
Disability Law Center. Staff has received letters from a licensed psychologist who
has had Ms. Thurber for a client for several years. Ms. Thurber's disability has had
an extremely adverse affect on her ability to function in a normal and regular
manner. She has difficulties functioning independently, which has drastically limited
her mobility. She has experienced severe panic attacks, and the fear of their
recurrence, quite frequently.
Staff has also been contacted by the Department of Economic Security,
Rehabilitation Services Branch, who has committed funding to assist Ms. Thurber in
the cost of a license for the start-up of her home business. It is their opinion that
allowing Ms. Thurber to utilize her home as an office in which to see small numbers
of massage clients allows her a chance at self-sufficiency.
Ms. Thurber will work with Bloomington health sanitarians to comply with all the
requirements for this license and follow their recommendations for health issues.
Ms. Thurber has no known criminal history.
III. BASIS OF RECONIMENDATION
A. POLICY
. The applicant has complied with all of the provisions of the City
application process, has paid the license fees and has provided proof
of liability insurance.
• Based upon the information supplied by the applicant and the
investigation conducted, there appears to be no reason to deny the
license request.
B. CRITICAL ISSUES
• Due to the C-2 zoning requirements, a therapeutic massage
enterprise is not permitted in a residential neighborhood. However,
federal law requires cities to make modifications in its zoning and
licensing practices for disabled individuals, if the individual otherwise
meets all of the essential requirements and if the modifications do not
cause undue hardship for the City.
C. FINANCIAL
• The license fees have been paid by the Minnesota Workforce Center.
•
• D. LEGAL
City Attorney staff has reviewed all of the documents and has given
the opinion that the license should be granted to the applicant unless it
can be shown that it would be extremely burdensome for the City to
do so. Because staff does not believe it would be burdensome to
accommodate Ms. Thurber, the City Attorney agrees that the license
should be granted.
IV. ALTERNATIVE RECOMMENDATION(S~
• The City Council could deny the request for a new therapeutic massage
license for Ms. Thurber at 7515 Upton Avenue, however, that would not be
the recommendation of the City Attorney as it relates to discrimination
against disabled individuals.
V. ATTAC~IlVIENTS
• Due to the sensitive and "private" nature of the information submitted by Ms.
Thurber as part of the license application, and the fact that the State Data
Practices Act does no't appear to classify this type of information as anything
other than public, the City Attorney has advised staff to request that the State
Department of Administration temporarily classify the information as private.
Under the Data Practices Act, a classification of data as "private" means that
the data is not public, but is accessible to the subject of the data; in this case,
Ms. Thurber. Accordingly, the attachments to Ms. Thurber's license
application with more detailed information are available for Council review, if
necessary.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Due to Ms. Thurber's condition, it is unknown at this time, whether she will be
in attendance.
•
•
AGENDA SECTION:
AGENDA ITEM #
REPORT #
~~~
_.. ~
STAFF REPORT
CITY COUNCIL MEETING
SEPTEMBER 24, 2002
Consent
4F
225
REPORT PREPARED BY:
AL PAYNE, FACILITIES MANAGER
NAME, TITLE
REPORT PRESENTER:
AL PAYNE, FACILITIES MANAGER
NAME, TITLE
r~
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DEPARTMENT DIIZECTOR REVIEW: ~ /
S ATURE
~1
REVIEWED BY CITY MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of the purchase and installation of a new evaporative condenser in the amount
of $42,034.85 for Rink One of the Richfield Ice Arena.
I. RECOMMENDED ACTION:
By Motion: Authorize the purchase of a new evaporative condenser in
the amount of $42,034.85 for Rink One of the Richfield Ice Arena from
Gartner Refriaeration & Mfa. Inc.
•
II. BACKGROUND
The evaporative condenser on Rink One was struck by lighting on September 6,
completely destroying two of the fans and fan shaft. This piece of equipment is
essential to the operation of the ice rink refrigeration system. The evaporative
condenser converts high pressure discharge gas to a low pressure, otherwise the
refrigeration system would not operate.
The current evaporative condenser is the original (1971) and has been scheduled
for several years in the CIP for replacement, but continues to be moved back due to
other needs.
0924arena
There is also a condenser pump that supplies water to the evaporative coils if the
fans are unable to reduce the discharge pressure. The water operates in the spring
• through fall. There is a potential freezing problem if the water is used in the winter.
Therefore, it's necessary to have all fans operating in the winter.
Allied Adjusters has looked at the condenser and is gathering information to
determine an amount for an insurance claim. To repair only the damaged section of
the condenser is estimated at $10-12,000. This may be the amount insurance will
cover. Because of the age and condition of the existing evaporator unit, staff
recommends replacing the entire unit.
III. BASIS OF RECOMMENDATION
A. POLICY
^ This expenditure is unforeseen and unbudgeted, but is necessary for
the proper functioning of the Ice Arena.
^ Because this item could not be budgeted, the purchase of new
equipment will need to be authorized by the City Council at this time.
B. CRITICAL ISSUES
• The condenser needs to be repaired before the weather gets too cold
to eliminate the problem of having to use water and freezing.
• It is reasonable to expect that future repairs and additional
expenditures can be reduced if condenser is replaced with a totally
new condenser.
• Rink One potentially could not operate during the upcoming skating
season if the repair is not completed and problems occur with the
remaining fans/motor.
• The arena will need to shut the refrigeration system off and cancel ice
on Rink One the day the condenser is installed. It will take about eight
weeks for delivery. It would be best for installation to occur before the
extreme cold weather and prior to the busy high school game
schedules in December.
• Effective and reliable refrigeration equipment is essential in the arena
operation. Loss of ice time causes lower revenues and customer
dissatisfaction.
C. FINANCIAL
^ City reserves are the source of funds for this unbudgeted expenditure.
^ Installing a new evaporative condenser, rather than repairing a 31
year old piece of equipment that needs to be replaced will improve
efficiency, reliability and cost less than repairing now and then
replacing in the near future.
^ The work needs to be completed in one day; otherwise the ice would
melt and result in a potential shutdown of Rink One for more than a
week. This would result in a loss of over $9,000 in revenues.
• IV. ALTERNATIVE RECOMMENDATION(S~
^ To repair only the damaged portion of the evaporative condenser for an
estimated $10-12,000.
V. ATTACHMENTS
• Submitted quote.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
•
.7
~ ~ Q
REFRIGERATION & MFG. INC.
13205-16th Avenue North
Plymouth, MN 55441
Richfield Ice Arena
636E 66th St
Richfield, MN 55423
Attn: Al Payne
Subj: Rink #1 Condenser
Dear Al,
September 13, 2002
Quotation No.: 0902-8299-0
We propose to furnish and install a replacement condenser for your BAC Model VLC 225. Your
existing condenser is no longer manufactured and would require a different configuration to be
applied to the new condenser versions.
• Gartner Refrigeration proposes to upgrade the condenser to a BAC Model CXV-153. This new
condenser has a different fan configuration, with the fan located in the center discharging
upward. The new condenser would use your existing condenser sump pump, refrigerant lines,
and water and drain lines.
We would pump down and reclaim the refrigerant in this condenser system, cut the hot gas
condenser drain, and water supply and return lines loose. Once the piping and electrical
disconnection is complete we would lift your existing condenser off its plat form.
New I beams would be set on your existing steel supports that would match the size of the new
condenser. The new condenser would be set in place and the piping would be reconnected and
extended to meet the new condenser. Once the leak check and evacuation is complete we would
perform a startup, and test and adjust of the new condenser in place. The necessary cylinder
rentals for refrigerant, permits, craNE for hoisting, pipe, fittings, and installation labor would be
included.
Richfield Ice Arena Net Price ............:.......................................................................$ 39,469.00
Included will be our "Scope of Responsibilities" which will become a part of this proposal.
Office/24-hour phone: 763-559-5880 • 800-328-5547 • Facsimile: 763-559-5925
www. Gartner-Refrig. com
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AGENDA SECTION: Consent
AGENDA ITEM # 4E
REPORT # 224
~' STAFF REPORT
CITY COUNCIL MEETING
SEPTEMBER 24, 2002
REPORT PREPARED BY:
CHRIS REGIS, FINANCE MANAGER
NAME, TLTLE
•
•
REPORT PRESENTER:
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY CITY MANAGER:
REGIS, FINANCE MANAGER
ITEM FOR COUNCIL CONSIDERATION:
Consideration of the attached resolution levying special assessment for nuisance abatement.
I. RECOMMENDED ACTION:
By Motion: Adopt the attached resolution levying special
assessments for nuisance abatement a ainst listed ro ert owners.
II. BACKGROUND
The special assessment for nuisance abatement is for costs incurred by the City in
connection with abatement for nuisances on certain properties in the City, which are
not properly maintained. The owners of the subject properties are notified by the
City to correct the nuisance and have failed to do so within a timely limit. The
property owners were notified that if the nuisance is not abated within the proper
time limit, the City would take the corrective action necessary and bill the property
owner.
Finally, the property owner is notified that any unpaid charges of fees may be
assessed against the property.
09242002SA
III. BASIS OF RECOMMENDATION
• A. POLICY
• The nuisance property was not maintained by the owners and the City
incurred costs to abate the nuisance.
Minnesota State Statutes provide that the City may levy a special one-
yearassessment for these costs.
B. CRITICAL ISSUES
• N/A
C. FINANCIAL
• The proposed special assessment for nuisance abatement is $42.56
with an additional 8% interest penalty.
D. LEGAL
• N/A
IV. ALTERNATIVE RECOMMENDATION(S~
• Do not approve the attached resolution and have the costs absorbed by the
City.
• V. ATTACHIVIENTS
• Resolution.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
RESOLUTION NO.
RESOLUTION LEVYING SPECIAL ASSESSMENT
FOR NUISANCE ABATEMENT
BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows:
1. The following described properties are hereby specially assessed in the following
amounts for expense incurred by the City in connection with abatement of a nuisance
health hazard and a safety hazard pursuant to provisions of Minnesota Statutes,
Section 429.101, to wit:
PROPERTY ID ADDITION ADDRESS AMOUNT
NUISANCE ABATEMENT:
35-02824-13-0049 49737 7325 14th Avenue So. $42.56
2. The above special assessment is to be spread over one year at the rate of 8%
interest per annum.
3. That the City Clerk is hereby authorized and directed to certify a copy of this
• resolution to the County Auditor of Hennepin County, Minnesota.
Passed by the City Council of the City of Richfield, Minnesota this 24th day of
September, 2002.
Martin J. Kirsch, Mayor
ATTEST:
Nancy Gibbs, City Clerk
U
AGENDA SECTION: CONSENT
AGENDA ITEM # 4D
• REPORT # 223
STAFF REPORT
CITY COUNCIL MEETING
SEPTEMBER 24, 2002
_____ -
REPORT PREPARED BY: ROBERT HINTGEN, UTILITIES SUPERVISOR
Nanar, Tirt.l:
REPORT PRESENTER: MIKE EASTLING, PUBLIC WORKS DIRECTOR
DEPARTMENT DIRECTOR REVIEW: ~ --
SicNarct r•
REVIEWED BY CITY MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of resolution certifying delinquent sewer and water utility accounts to the County
Auditor.
I. RECOMMENDED ACTION:
By Motion: Adopt the resolution certifying unpaid sewer and water
service charges to the County Auditor to be collected with other taxes
on said properties.
III. BACKGROUND ~
Chapter VII of the Richfield Ordinance Code provides that unpaid water and sewer
charges may be certified to the County Auditor to be included in a property owner's
annual property tax bill. The Ordinance Code also authorizes $25 certification fee
to be charged against each delinquent account. By certifying the delinquent
charges to the property taxes for the delinquent properties, the City is assured of
ultimately collecting the delinquent charges.
In 2001 the City Council certified $139,983.20 of delinquent charges for 272
properties, an average cost of $514.64 per account. The 2002 certification currently
under consideration totals $218,516.10 for 942 properties, an average of $231.97
0924delinquent
per account. Staff expects that, as in years past, many of the now delinquent
• accounts will be paid before certification.
III. BASIS OF RECOMMENDATION
A. POLICY
• State Statute and Chapter VII of the Richfield Ordinance Code provide
that unpaid water and sewer charges may be certified to the County
Auditor to be included in a property owner's annual property tax bill.
B. CRITICAL ISSUES
• Property owners owing utility charges will be notified in August and
September that failure to pay the amount owed will result in
certification to the property owners' taxes.
C. FINANCIAL
• Throughout the year, the division bills and collects charges for water,
wastewater and storm water from accounts within the City. The
delinquent accounts must be certified to the County Auditor in order
for the City to collect the charges through the property tax process. A
$25 certification is charged to each account assessed to taxes. The
assessment is spread over a period of one year at the rate of 8% per
annum.
D. LEGAL
• N/A
IV. ALTERNATIVE RECOMMENDATION(S~
• Do not approve the resolution. However, the certification process is the only
process the City has to collect these delinquent accounts.
V. ATTACHMENTS
• Resolution authorizing certification of unpaid sewer and water service
charges to the County Auditor to be collected with other taxes on said
properties
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
RESOLUTION NO.
RESOLUTION AUTHORIZING CERTIFICATION OF UNPAID SEWER AND WATER
SERVICE CHARGES TO THE COUNTY AUDITOR TO BE COLLECTED WITH
• OTHER TAXES ON SAID PROPERTIES
WHEREAS, Ordinance Code 715 establishes rules, rates and charges for water
service in the City of Richfield; and
WHEREAS, Minnesota Statutes 444.075 provides that all delinquent water
service charges not paid may be certified to the County Auditor and shall be collected
with other taxes on such property; and
WHEREAS, Ordinance Code 705 established rules, rates and charges for
sanitary sewer service in the City of Richfield; and
WHEREAS, 705.19 thereof provides that all sewer services charges not paid
with 15 days after the quarterly due date may be certified to the County Auditor with
taxes against such property, and shall be collected with other taxes on such property;
and
WHEREAS, Ordinance Code 720 established rules, rates and charges for storm
water service in the City of Richfield; and
WHEREAS, 705.19 thereof provides that all storm water service charges not
paid may be certified to the County Auditor with taxes against such properties, and shall
be collected with other taxes on such property; and
WHEREAS, an assessment roll has been prepared specifying the amount, which
shall be certified against each particular property.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Richfield, Minnesota:
1. There is hereby determined to be a total uncollected amount for water, sanitary
sewer and storm service of $218,516.10
2. That a $25 certification charge shall be levied against each delinquent account, such
charges totaling $23,550.00
3. That the above-described assessment be spread over a period of one year at the
rate of 8% per annum.
4. That such amount be hereby certified to the County Auditor for collection with other
taxes on said properties.
5. That a copy of the resolution shall be sent to the Hennepin County Auditor.
Adopted by the City Council of the City of Richfield, Minnesota this 24th day of
September 2002.
Martin J. Kirsch, Mayor
ATTEST:
.Nancy Gibbs, City Clerk
•
AGENDA SECTION
AGENDA ITEM #
REPORT #
..~~
STAFF REPORT
CITY COUNCIL MEETING
SEPTEMBER 24, 2002
Consent
4C
222
REPORT PREPARED BY:
KEVIN J. MCGINTY, FIRE CHIEF
NAME, TITLE
REPORT PRESENTER:
KEVIN J. MCGINTY, FIRE CHIEF
NAME, TITLE
•
DEPARTMENT DIltECTOR REVIEW:
REVIEWED BY CITY MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of the attached resolution to amend membership listing of the South West Fire
Lea ue Mutual Aid Association of which the Richfield Fire De artment is a member.
I. RECOMMENDED ACTION:
By Motion: Approve the attached resolution to change the name of a
member of the South West Fire Lea ue.
II. BACKGROUND
Richfield is a member of the Southwest Fire League Mutual Aid Association. It is a
group of 14 agencies who have agreed to help one another in the event of a major
fire, natural or technological disaster.
The City of Excelsior Fire Department is a member but has changed to the
Excelsior Fire District and would like to continue to be a member of the association.
•
III. BASIS OF RECOMMENDATION
A. POLICY
• Richfield relies on this association for additional assistance during
emergency situations.
0924fire
B. CRITICAL ISSUES
• In the event of necessary additional assistance, the suburbs including
City of Excelsior Fire District will be mutually dependent on one
another to provide emergency response.
C. FINANCIAL
• The mutual aid agreement means there are no financial charges when
departments assist one another.
D. LEGAL
• Existing mutual aid is in place.
IV. ALTERNATNE RECOMMENDATION~S~
• Do not approve the resolution.
V. ATTACPIMENTS
• Resolution.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
•
•
RESOLUTION NO.
RESOLUTION APPROVING CHANGE TO EXHIBIT A
OF THE SOUTHWEST MUTUAL AID AGREEMENT
WHEREAS, the City of Richfield; has previously approved and participated in a
mutual aid agreement between the southwest suburban governmental agencies to provide
cooperative use of fire personnel and equipment; and
WHEREAS, the agencies participating in this agreement have been designated the
Southwest Mutual Aid Association; and
WHEREAS, the existing agreement requires the parties of the agreement to
approve by resolution a new Exhibit A to add a new member to the agreement; and
WHEREAS, the City of Excelsior Fire Department was a member but has changed
to the Excelsior Fire District and would like to continue to be a member of the Association.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield,
Minnesota that:
The revised Exhibit A dated July 25, 2002, which includes the Excelsior Fire
District, is hereby approved as the new official list of parties to the agreement
. establishing the Southwest Mutual Aid Association.
The City Clerk is directed to transmit a certified copy of this resolution to the
secretary of the Southwest Mutual Aid Association.
Adopted by the City Council of the City of Richfield, Minnesota this 24th day of
September, 2002.
Martin J. Kirsch, Mayor
ATTEST:
Nancy Gibbs, City Clerk
Southwest Mutual Aid Association
.Joint And Cooperative Agreement For Use O.,f
Fire Personnel And Equipment
I. PURPOSE.
This Agreement is made pursuant to Minnesota Statutes Section 471.59, which authorizes
the joint and cooperative exercise of powers common to contracting Parties. The Parties to
this Agreement wish to create a regional Mutual Aid Association, hereafter called the
Southwest Mutual Aid Association, for the purpose of making fire equipment, personnel and
facilities available to each other upon request. This Agreement is intended to give each
Party the authority to send its equipment and personnel into the other communities and to
provide for an Operating Committee to administer this Agreement.
II. DEFINITION OF TERMS
For the purposes of this Agreement, the terms defined in this section shall have the
meanings given them below.
Subd. 1. "Assistance" means the providing of fire personnel and equipment, fire
investigators, fire inspectors, fire educators, fire instructors, training personal and
associated equipment and facilities.
. Subd. 2. "Emergency" means a sudden and unforeseen situation requiring immediate
action.
Subd. 3. "Party" means a governmental unit which is a Party to this Agreement.
Subd. 4. "Requesting Official" means the person designated by a Party who is responsible
for requesting Assistance from other Parties.
Subd. 5. "Requesting Party" means a Party which requests Assistance from other Parties.
Subd. 6. "Responding Official" means the person designated by a Party who is
responsible to determine whether and to what extent that Party should provide
Assistance to a Requesting Party.
Subd. 7. "Responding Party" means a Party which. provides Assistance to a Requesting
Party.
Subd. 8. "Specialized Activities" means non-emergency Assistance to include but not be
limited to: fire investigators, fire inspectors, fire educators, fire instructors, training
personal and associated equipment and facilities.
• Subd. 9. "Extraordinary Services" means emergency Assistance that includes activities
beyond the normal scope of firefighting, such as .hazardous materials incidents,
high level rescue, or dive rescue.
III. PARTIES
Southwest Mutual Aid Association Joint And Cooperative Agreement For lJse 0(Fire Personnel And Equipment i-19-95
2
The Parties to this Agreement are those entities which approve this Agreement and execute
a separate signature page in accordance with Section VIII.
• The Parties constitute the membership the Southwest Mutual Aid Association.
Other entities may become a Party to this Agreement by complying with the conditions
provided in the Association rules, by applying to and receiving approval of all member
Parties, and by executing a separate signature page for this Agreement. Any Party may
withdraw from membership at any time upon thirty days written notice to-the other
members. A party may be removed from membership only by a vote of at least
three-quarters of all other Parties to the Agreement and only for the following causes:
failure to comply with the terms of the agreement as may be modified or a failure to pay
dues.
Action by any Party which is required or permitted under this Agreement will be evidenced
by:
• for a municipality, a resolution adopted by the governing body, or
• for anon-municipality, a letter executed by an official with sufficient authority to bind that
party which recites the basis of that authority.
IV. PROCEDURE
Subd. 1. Whenever, in the opinion of a Requesting Official, there is a need for Assistance
from other Parties; such Requesting Official may, at his/her discretion, call upon
the Responding Official of .any other Party to furnish Assistance to and within the
• boundaries of the Requesting Party. Subject to the limitations set forth herein, it is
the intention of the Parties to this Agreement to cooperate in the event of an
emergency by making the necessary Assistance available to a Requesting Party
without undue delay.
Subd. 2. Upon the receipt of a request for Assistance from a Party, the Responding Official
may authorize and direct the Fire Department personnel under his/her control to
provide Assistance to the Requesting Party. Whether the Responding Party
provides such Assistance to the Requesting Party and, if so, to what extent such
Assistance is provided shall be determined solely by the Responding Official
(subject to such supervision and direction as may be applicable to him/her within
the governmental structure of the Party by which he/she is employed). Failure to
provide Assistance will not result in liability to a Party.
Subd. 3. When a Responding Party provides Assistance under the terms of this
Agreement, it may in turn request Assistance from other Parties as "backup"
during the time that it is providing Assistance outside its boundaries.
Subd. 4. Whenever a Responding Party has provided Assistance to a Requesting Party,
the Responding Official may at any time recall such Assistance or any part thereof
if the Responding Official in his/her best judgment deems such recall necessary to
. provide for the best interests of his/her own community. Such action will not result
in liability to any Party.
Southwest Mutual Aid Association Joint And Cooperative Agreemenf For Use Of Fire Personnel And Equipment 7-79-95
3
Subd. 5. The Requesting Party shall be in command of the emergency scene. The
personnel and equipment provided by the Responding Party shall be under the
direction and control of the Requesting Party until the Responding Official
• withdraws Assistance.
Subd. 6. A Responding Party shall be responsible for its own personnel, equipment, and
for injuries or death to any such personnel or damage to any such equipment,
except that unused equipment provided- by the Responding Party shall be
returned to the Responding Party by the Requesting Party when circumstances
permit this to be done. Responding personnel shall be deemed to be performing
their regular duties for the Responding Party. Insurance coverage and any
financial compensation shall be the responsibility of the Responding Party. Each
Party waives the right to sue any other Party for any workers compensation
benefits paid to its own employee or volunteer even if the injuries were caused
wholly or partially by the negligence of any other Party, its officers, employees,. or
volunteers.
Subd. 7. Specialized activities of anon-emergency nature may be requested. and/or
provided by the Parties to -this Agreement..
Subd. 8. No charge shall be made to a Party for Assistance rendered under this
Agreement except that a Party providing Assistance shall be paid for the cost of
supplies. A Party providing Assistance may charge for time and materials for
Specialized activities and Extraordinary Service as provided for in the association
• rules.
V. ~ OPERATING COMMITTEE
The association shall have an Operating Committee to administer this Agreement.
Subd. 1. The Chief of each Party's Fire Department, or designee, shall be the Party's
representative to the Association Operating Committee.
Subd. 2. It is the responsibility of the Operating Committee to establish rules, policies, and
standards and to take other necessary or prudent action to administer this
Agreement.
Subd. 3. The Operating Committee shall meet periodically, but not less than quarterly to
conduct the business of the Association.
Subd. 4. The Association is not a separate legal entity. The Operating Committee shall
have no authority to own property, enter into contracts, or to receive and expend
funds except for routine administrative expenses.
VI. RECIPROCAL DEFENSE AND INDEMNIFICATION
Except for the United States Veteran's Administration Medical Center ("the V.A.") which is
.subject to federal laws prohibiting the following provision the Requesting Party agrees to
indemnify and defend against any claims brought or actions filed against the Responding
Party or any officers, employees, or volunteers of the Responding Party for injury or death
Southwest Mutual Aid Association Joint And Cooperative Agreement For Use Of Fire Personnel And Equipment 1-19-95
4
to any third person or persons, or damage to the property of third persons, arising out of the
performance and provision of Assistance in responding to a request for Assistance by the
Requesting Party pursuant to this Agreement.
• The intent of the indemnification re uirement of this section is to im ose on each
q p
Requesting Party a limited duty to defend and indemnify any Responding Party for claims
arising within the Requesting Party's jurisdiction subject to the liability limits under Chapter
466, Minnesota Statutes. The purpose of creating these reciprocal duties to defend and
indemnify is to simplify the defense of liability claims by eliminating conflicts among
defendants, and to permit liability claims against multiple defendants from a single
occurrence to be defended by a single attorney.
Under no circumstances, however, shall a Party be required to pay, on behalf of itself and
other Parties, any amounts in excess of the liability limits established in Chapter 466,
Minnesota Statutes, applicable to only one Party. The limits of liability for some or all
Parties may not be added together to increase the maximum statutory liability limits for any
Party.
VII. WAIVER
Each party waives all claims against the V.A. and the V.A. waives all claims it may have
against any Party, for any compensation for any loss, damage, personal injury, or death
occurring in the consequence of the performance of fire protection services for the V.A. or
by V.A. personnel. However, this waiver does not preclude a fire organization from filing
claims for fire fighting costs and losses pursuant to 15 U.S.C. 2210, beneficiaries from filing
• claims for the deaths of firefighters and other public safety officers pursuant to 42 U.S.C.
3796, and individuals other than the Parties and their employees, from filing claims against
the United States pursuant to 28 U.S.C. 1346(b) and 2671-2680.
VIII. EFFECTIVE DATE
This Agreement shall be effective upon execution by three-quarters of the entities listed on
the attached Exhibit A which is incorporated by reference herein. Each Party shall execute
a separate signature page and forward that page to the Association Secretary, along with a
resolution or letter as provided in Section III. Upon receipt of all executed signature pages,
the Secretary shall send a copy of the fully executed agreement to each member. If this
Agreement is executed by all of the entities listed on the attached Exhibit A, this Agreement
shall supersede, replace, and void all prior agreements which provide for the existence of
the Southwest Mutual Aid Association, and all assets of the Association under those
agreements shall be transferred to the Association created pursuant to this Agreement. If
the Agreement becomes effective by less than unanimous approval, the Parties to this
Agreement shall vote to transfer any assets of the pre-existing Southwest Mutual Aid
Association to the Association created under this Agreement and shall thereafter give
notice that they are withdrawing from the pre-existing Association.
IX. AMENDMENT
• This Agreement may be amended or terminated upon the affirmative vote of three-quarters
of the Parties then existing.
Soufhwest Mutual Aid Association Joint And Cooperative Agreement For Use Of Fire Personnel And Equipment 1-19-95
Southwest Mutual Aid Association
Personnel And Equipment Agreement EXHIBIT A
• City of Bloomington:
Bloomington Fire Dept.
2215 Old Shakopee Rd.
Bloomington, MN 55431
City of Minneapolis
Minneapolis Fire Dept.
300 S 5th St -Room 230
Minneapolis, MN 55415
City of Chanhassen:
Chanhassen Fire Dept.
7610 Laredo Dr., Box 97
Chanhassen, MN 55317
City of Eden Prairie:
Eden Prairie Fire Dept.
7801 Mitchell Rd.
Eden Prairie, MN 55344
City of Edina:
Edina Fire Dept.
6250 Tracy Ave.
• Edina, MN 55436
~i4v ~~f Cvnelci~r•
Cvnolcinr Ciro rlon~.
Excelsior Fire District
339 3rd Street
Excelsior, MN 55331
City of Golden Valley:
Golden Valley Fire Dept.
7800 Golden Valley Rd.
Golden Valley, MN 55427
City of Hopkins:
Hopkins Fire Dept.
1010 1st St. S.
Hopkins, MN 55343
• City of Maple Grove:.
Maple Grove Fire Dept.
9101 Fernbrook Lane
Maple Grove, MN 55311
City of Minnetonka:
Minnetonka Fire Dept.
14550 Minnetonka Blvd.
Minnetonka, MN 55345
City of Plymouth:
Plymouth Fire Dept.
3400 Plymouth Blvd.
Plymouth, MN 55447
City of Richfield:
Richfield Dept. of Pub. Safety
6700 Portland Ave.
Richfield, MN 55423
City of St. Louis Park:
St. Louis Park Fire Dept.
5005 Minnetonka Blvd.
St. Louis Park, MN 55416
City of Wayzata:
Wayzata Fire Dept.
600 Rice St.
Wayzata, MN 55391
Metropolitan Airport Commission:
Airport Fire Dept.
6307 34th Ave. S.
Minneapolis, MN 55440
7-25-2002
•
STAFF REPORT
Consent
4B
221
AGENDA SECTION:
AGENDA ITEM #
REPORT #
CITY COUNCIL MEETING
SEPTEMBER 24, 2002
REPORT PREPARED BY:
•
REPORT PRESENTER:
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY CITY MANAGER:
STEVEN L. DEVICH,
ADMINISTRATIVE SERVICES DIRECTOR
NAME, TITLE
STEVEN L. DEVICH,
AD I1~I 1IS~'RATIVE SERVICES DIRECTOR
~~ NAME, LE
t
ITEM FOR COUNCIL CONSIDERATION:
Consideration of the attached resolution establishing authority for a Health Care Savings Plan
for eli ible Cit of Richfield em to ees.
I. RECOMMENDED ACTION:
By Motion: Adopt the attached resolution authorizing the
establishment of a Health Care Savings Plan for eligible City of
Richfield em
II. BACKGROUND
In 2001, the Minnesota Legislature granted authority to the Minnesota State
Retirement System (MSRS) to offer a post retirement health care savings plan to
eligible employees of the State of Minnesota and other governmental subdivisions.
MSRS was authorized to administer these plans after they were adopted by
governmental subdivisions throughout the State.
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
0924HealthCareSavingsPlan
contributed into the program are tax-free, accumulate tax free, and if used for
medical expenses, remain tax-free.
Legal authority to establish such plans is provided through Minn. Stat. 352.98 and
Internal Revenue Service rulings. The establishment of each plan, including
contribution formulae, must be negotiated where dealing with a collective bargaining
unit or personnel policy where non-union employees are involved. Once
established, the plan must be filed with MSRS to initiate the program.
Participation for each individual employee within a bargaining or employee group is
mandatory once the plan is established for that respective group. Moreover, the
amounts contributed for or by each employee in a particular group must be the
same for every employee of the group. Contributed amounts between employee
groups may vary, however.
To date, only the Management employee group has come to an agreement
concerning the implementation of this program. Other employee groups have
expressed an interest and staff will be pursuing this matter with those groups based
upon a plan design similar to the one agreed upon by the Management group.
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 employees 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 Management employees have
expressed a desire to implement the program so it should be pursued
at the 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 the 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. ATTACI-IlVIENTS
• Resolution
Post Retirement Health Care Savings Plan
Post Retirement Health Savings Plan Questions and Answers
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
•
RESOLUTION NO.
• RESOLUTION AUTHORIZING THE ESTABLISHMENT OF A POST RETIREMENT
HEALTH CARE SAVINGS PLAN FOR MANAGEMENT EMPLOYEES
WHEREAS, the Laws of Minnesota 2001, Chapter 352.98, authorize 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 Management
group of City employees and the City of Richfield; and
WHEREAS, the proposed plan is a net savings to the City of Richfield.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Richfield hereby authorizes the City Manager to establish a Health Care Savings Plan
for the Management group of employees in the City of Richfield.
Adopted by the City Council of the City of Richfield, Minnesota this 24th day of
September 2002.
Martin J. Kirsch, Mayor
ATTEST:
Nancy Gibbs, City Clerk
•
•
Policy: Post Petl'rement Health Care Savings Plan
Section:
Approved by:
Effective Date:
Page: 1 of
Plan Purpose The City of Richfield is interested in establishing a means for eligible
employees to participate in a mandatory program to help defray some of
the costs of post employment health related expenses, including health
insurance premiums using pre-tax dollars. Participation in the Post
Retirement Health Care Savings Plan, administered by the Minnesota
State Retirement System (MSRS), is intended to provide an opportunity
to accomplish that goal.
Post Retirement The Post Retirement Health Care Savings Plan (HCSP) is an
Health Care Employer-sponsored program that allows eligible employees to:
Savings Plan 1) defer payment of a portion of unused vacation and personal leave as
a severance payment at the time of termination to pay for eligible
health insurance premiums and/or health expenses after separation
from City service, and
2) defer a portion of an Employees' bi-weekly salary for deposit into
their HCSP for the payment of qualified healthcare related expenses
after separation from City service.
Employees will be able to choose among several different investment
options provided by the Minnesota State Board of Investment. Under
the Plan, amounts contributed into the HCSP are tax-free and not
subject to FICA contributions. Assets in the HCSP will accumulate tax-
free and since payouts are used for qualifying medical expenses, they
will also remain tax-free.
Eligibility to Participation in the HCSP is mandatory for all employees that meet
Participate the following requirements:
1. The Employee must be a member of the Richfield Management Pay
Classification Plan. at the time of termination of employment, and
2. The Employee must have been continuously employed by the city of
Richfield for at least 3 consecutive years.
Contribution Mandatory participation in the HCSP shall be in accordance with, and
Formula limited to the following formulas for contributions:
•
I. Bi-weekly Contribution
1. An eligible Employee must contribute $16 per pay period to the
Employee's account in the HCSP. Such contributions shall not
exceed $16 per pay period.
II. Severance Contribution
1. Severance shall be paid in cash for the first 80 hours of
accumulated but unused Personal Leave. Severance based on
accumulated but unused Personal Leave in excess of 80 hours
shall be paid as a credit to the Employee's account in the HCSP.
2. Severance shall be paid in cash for the first 80 hours of
accumulated but unused Vacation Leave.. Severance based on
accumulated but unused Vacation Leave in excess of 80 hours
shall be paid as a credit to the Employee's account in the HCSP.
3. All severance payments based upon Personal & Vacation Leaves
are calculated as described above, by multiplying the number of
hours by the applicable rate of pay.
C7
Contributions authorized under this Plan shall continue until such
time as this policy is amended or repealed by the City of Richfield.
HCSP The HCSP is authorized under the Internal Revenue Code and is
Administration administered by the Minnesota State Retirement System.
•
Post Retirement Health Care Savings Plnn
Administered by the Minnesota State Retirement System
Ornft.as of 9/11/01
What is the post retirement health care
savings plan?
The post retireme-rt health care savings plan
is nn employer-sponsored program that allows
employees to save money to pay medical
expenses and/or health insurance premiums
after termination of public service. ,
Employees. will be. able to choose among seven. _ _~
different investment options provided by the
State Board of Investment. Assets in the
program will accumulate tax-free, and if
payouts are used for medical expenses, they
will remain tax-free.
1+ji't'at ieaa; authority exists to offer fihe
cst r~t:rement health Lare savir.~gs plea?
Laws of Minnesota 2001, Chapter 352.98,
authorizes MSRS to offer this program to
state employees, as well as, all other
governmental subdivisions.
The Internal Revenue Service authorizes
government bodies to establish "funds" which
are deemed to be an "integral part" of the
organization. IRS rulings state that providing
employee welfare benefits to retirees is an
"essential function" of state or local
government's activities. The IRS also
deemed that providing retiree health
benefits is an "essential function."
Therefore, it is considered an integral part of
the government's activities and as a result it
enjoys the entity's tax exempt status. (In
Treasury Regulation Section 301.7701-1(nx3))
Who chooses how much and what dollars
will be put into the post retirement health
care savings plan?
Employees covered by o bargaining unit.
Amounts to be put into the account must be
negotiated or agreed to by both the
bargaining unit and employer.
Employees not covered by o bargaining unit.
Amounts to be put into the account must be
included in a personnel policy and must cover
all employees covered under the personnel
arrangement.
A key component to keep the tax
advantages of the post retirement health
care savings plan is that all employees
covered under a specific bargaining unit must
be treated the same. Each employee cannot
be given n choice of whether or not to
participate. The amount and Type of money to
be put into the account must apply to all
employees within the bargaining unit. You can
hrn~e differences among various bargaining
units, and you need not cover all groups of
employees.
What type of money can be put into the
account to receive the favorable tax
treatment?
Mainly, there are three ways to set aside
money under the post retirement health care
savings plan and receive favorable tax
treatment.
Page 1
"-'° p/over Contributions--For example, an
ployer could elect to put n specific dollar
amount into employees' accounts, or set aside
a percentage of employees' salary into the
accounts.
Mvndutory Employee Contributions-For
example, n portion of the next salary increase
could be required to be set aside in a health
care ceimbursemerrt account.
Severonce Poy--Many public employers pay
unused vacation or sick leave as severance pay
at the time of termination. All or a portion of
the severance pay may be put into the post
retirement health care savings plan.
L~Inat "are t3z benefits -for your emp?oyees7 -
The post retirement health care savings plan
allows employees to set aside money as active
employees to cover the ever-increasing costs
of health insurance or medical expenses after
termination of public service. While deferred
compensation plans or retirement accounts
provide ntax-deferred benefit, amounts paid
out are considered taxable income. Under
the post retirement health care savings
program, amounts contributed are tax-free
and no taxes are paid on amounts paid as long
as they are used to pay health and dental
insurance premiums or used to cover out-of-
pocket medical expenses.
;,~ This tax advantage could result in
significant savings for employees. For
example, let's say an employee is eligible for
$5,000 in severance. If paid in cash -after
subtracting federal, state, and FICA taxes,
the net. amount of the payment would be
approximately $3,000. If that same amount
were saved in the post retirement health care
srnidngs plan the entire amount of $5,000
would be available to provide health care
coverage.
,r No forfeiture of funds upon an employees
death. Amounts in the post retirement health
care savings plan can be transferred to an
employee's spouse or dependent children. If
rare, the plan allows for the account balance
to be paid out to a designated beneficiary or
the estate. At this point the payment is
subject to state and federal taxes; however,
it is still exempt from FICA (7.650.
What are the benefits far the employer?
The post retirement health care smiings plan
allows you an opportunity to offer aloes-cost
benefit that your employees can use to cover
the rising cost of health care.
There are several benefits to employers:
_..
p you coritro/"the amount pdid into `tlte _. _ ._.. ._ _ . _. __.
pragrom and who should be eligible for
benefits.
Q No unfunded /iobilities. Amounts
contributed on behalf of an employee are put
into her/his account and can be used by the
employee until the account balance is
exhausted.
~ Employer eliminates FICA cost':
Amounts contributed to the plan are exempt
from Social Security and Medicare taxes for
both the employee and employer. Again using
the example of severance pay, if $5,000 were
put into the post retirement health. care
savings plan, the employer would save 7.659'°
or $382.50. (The legislation creating the plan
provides that a portion of the 7.65% savings
is to be paid to AASRS until the $75,000
start-up costs of the plan are recovered. We
will assess employers an amount equal to 0.5y°
of the total amount contributed on behalf of
your employees until these costs are
recovered. Start-up costs include the legal
documents necessary to establish the
program, computer programming, and printing
of materials. We will notify employers when
the $75,000 is recovered.)
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~~' Low cost. The fees to adn-inister the plan
e deducted from an employee's account.
Employees will also be charged 0:15% of their
account balance each quarter (0.60% per
year). For example, if un employee had an
account value of $10,000, $15 per quarter will
be deducted from the employee's nccourrt.
The maximum annual fee charged on an
accourrt will be $i40 or $35 per quarter. All
fees are subject to change.
Once the program is approved, you would mail
provided enrollment kits to eligible employees.
Employees will be asked to submit enrollment
materials to you, which will then be forwarded
to MSRS. If you provide us with addresses
for your employees, we can follow up on any
forms that are not returned.
Deductions will be made etectronienlly using
the file layout that is provided.
What responsibilities does the employer
have regarding the administration of the ! ~o.v do employees get started?
post retiremem health-care savings plan?
The employee receives an enrollment kit and
The main responsibility is to determine how returns the enrollment form to the employer.
much wil(be contributed to the plan and
,. .
_.. These forms are forwarded to MSRS. The.
.
_
_.
`making contributions to the plan on befiaTf ~of ""
forms asT<;for data sueb as iii: and ad~~~s"_. _ ~, _~. .
eligible employees. We will provide you with as well as beneficiary designations.
employee enrollment kits to get employees
started.
A copy of the file layout that you will use to
send contributions to MSRS is located at the
end of this document. The file layout is also
available on the MSRS Web site rat
vwvw.msrs.state.mn.us. MSRS will
maintain enrollment forms and employee
beneficiary designations.
Now does an employer begin participation, in
the pos# retireT~ent heclth care savings plan?
The employer contracts MSRS to receive
further information and sample enrollment
kits (enrollment materials are available on the
MSRS Web site at vvww.msrs.state.mn.us
click on the health care button). If you would
like, a member of our staff can meet with you
to further explain how the plan works.
The employer determines what benefits will
apply to various groups of employees.
Benefits must be bargained for employees
covered by collective bargaining or
established in n personnel policy for
employees not covered by collective
bargaining.
Those forms are forwarded to MSRS. We
ask that each employer provide indicative
data of all eligible employees electronically
which will allow us to follow up on employees
who do not submit an enrollment form.
We will send n welcome letter to participants,
providing them with a personal identification
number (PIN) to be used to access account
information and change investment
allocations. Investment allocations by
participants can be submitted on the MSRS
Web site or on a paper document.
i-icw wi;! employees' assets be invested?
Employees will be able to choose among seven
different investment choices. Since these
accounts are only valued at the end of the
month, an employee can change investment
selections once per month. Employees can
contribute to as many of the seven available
investments as they wish.
Page 3
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AGENDA SECTION: Cc;nsent
AGENDA ITEM # 4A
REPORT # 220
STAFF REPORT
CITY COUNCIL MEETING
SEPTEMBER 24, 2002
REPORT PREPARED BY:
NAME, TITLE
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REPORT PRESENTER:
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY CITY MANAGER:
NANCY GIBBS, CITY CLERK
NARY GIBBS, CITY CLERK
ITEM FOR COUNCIL CONSIDERATION:
Consideration of the attached resolution appointing additional election judges for the
November 5, 2002 General Election.
I. RECOMMENDED ACTION:
By Motion: Adopt the attached resolution appointing additional
election 'ud es for the General Election on November 5, 2002.
II. BACKGROUND
Minnesota Statute 204B.21 Subd. 2 provides that election judges for precincts in a
municipality shall be appointed by the governing body of the municipality and that
the appointments be made at least 25 days before the election at which the election
judges will serve.
On August 13, 2002, the City Council passed Resolution No. 9222, which appointed
as election judges individuals whose names were on the updated election judge
availability list. That appointment by the City Council allowed for them to serve as
election judges at the Primary Election, the General Election or both elections.
Election judges are assigned to the precincts based on availability, party balance
and the number required for each election. The General Election will require
assignment of the greatest number of available judges.
0924election
Since the August 13 City Council appointment of election judges, the City Clerk's
• office has received several additional names of individuals who are eligible and able
to serve as election judges for the Tuesday, November 5, 2002 General Election.
III. BASIS OF RECOMMENDATION
A. POLICY
• The City Council is required by State Statute to make election judge
appointments at least 25 days prior to the election.
• The proposed resolutions contain names of those qualified individuals
who have indicated a willingness and ability to serve as an election
judge for the November 5, 2002 General Election.
B. CRITICAL ISSUES
• If the City Council does not appoint additional election judges, the
conduct of the election would be hindered.
FINANCIAL
• Election judges are paid the following compensation:
Chair $8.00 per hour
Assistant Chair $7.50 per hour
Judge $7.25 per hour
D. LEGAL
• Compliance with Minnesota Statute 2046.21, Subd. 2 regarding
election judges.
• The General Election will be conducted on Tuesday, November 5,
2002. Therefore, the City Council should appoint additional election
judges to serve at this election.
IV. ALTERNATIVE RECONIMENDATION(S~
• The City Council could choose not to appoint the additional individuals who
are named on the resolution to serve as judge.
V. ATTACFIMENTS
• Resolution appointing additional election judges for the General Election of
November 5, 2002.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
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RESOLUTION NO.
RESOLUTION APPOINTING ADDITIONAL ELECTION JUDGES
FOR THE GENERAL ELECTION OF NOVEMBER 5, 2002
WHEREAS, a General Election will be held on Tuesday, November 5, 2002.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield,
that the following are hereby appointed as judges for said election:
Ralph Anderson Bernice Utter Delores Armstrong
Kris Dahl Brian Kroulik Betty Peltola
Elayne Gilhousen Helen Hillstrom Evelyn Johnstone
John Power Sunny Ray Joann Schuldt
Phyllis Unger Rebecca Guarinc Becky Spitzack
William Stixrud Patricia Bailey Pat Cantin
Lee Ohnesorge Sheila Fitzgerald Arne Garvander
Kathryn Hinton Cynthia Mandl Arloueen McGuire
Fiona Payne Earl Kommerstad Belen Andrada
Anthony Bowen Elaine Wetsch Judy Shuneson
Faye Sprecker Linda Nemitz Sandra Schmidt
Carol Devries Norma Martin Dorothy Wulf
Cynthia Davy Diane Healy Nancy Hoon
Mary Lou Janco Allan Parker Kathryn Voigt-Johnson
William Andersen Cheryl Avenson Gladys Hamernes
Sue Blumberg Geraldine Cooper Joanne Dentinger
Denise Eckerman Peg Gallagher Helen Volz
Betty Harrington Marilyn Jackola-Roetman Judy Schultz
Jim Butler Joan Helmer Thomas D. Keegan
Cindy Prince Monica Ann Mullerleile Gladys Denesen
Jenee Honnigford Robert Doebler Marion Horning
Reed Harms Bob Houlton Emil Koebnick
Karin McComb Dawn Nilsen Ernest Ackerly
Jeffrey Wood Charles Bauer Jr. Stanley Cromer
Myrtle Thom Loretta Root Geraldine Nachicas
Katherine Nordquist Doug Lund Virginia Keough
Doris Arnold George Larson Claire Larson
Barbara Peterson Betty Elenbaas Pat Toney
Helen Peterson Glady Rudy Carol Athey
Lorraine Schanzenbach Darlene Colbenson Marie Dallager
Beatrice Batchelor Delrose Desrosier Charles Devries
Marguerite Dozois Catherine Donoho Sheila Duscher
Dee Ann Edlund Cherill Lindquist Mary Jo Fadell
Harriet Ring Lester Loney Charlene Swanell
Marlene Odegard Lois Omlie Dorothy Stinger
Jean Swenson Ed Thom Jason Stroth
• Lee Ann Thomas James Weeks Roger Guarinc
Jon Schoonmaker Carol Brochu Cari Henschel
Susanne Erickson Robert Volsted Diane Henjum
June Dorothy Houlding Norman Johnson
And, that these names be added to the list of those appointed as election judges in
. Resolution No. 9222.
PASSED by the City Council of the City of Richfield, Minnesota this 24th day of
September, 2002.
Martin J. Kirsch, Mayor
ATTEST:
Nancy Gibbs, City Clerk
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