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05-26-09 Agenda PacketCITY OF RICHFIELD, MLNNESOTA TUESDAY, MAY 26, 2009 SPECIAL CITY COUNCIL WORKSESSON CITY COUNCIL CHAMBERS 6700 PORTLAND AVENUE 5:30 P.M. AGENDA Call to order Roll call 1. Discussion regarding housing proposal for vacant Candlewood parcel and southern portion of former Public Works garage (Council Memo No. 89) Notes: 2. Discussion regarding Arterial Roads Study (Council Memo No. 90) Notes: Adjournment REGULAR CITY COUNCIL MEETING COUNCIL CHAMBERS 6700 PORTLAND AVENUE 7:00 P.M. AGENDA INTRODUCTORY PROCEEDINGS Call to order Roll call Open forum (15 minutes maximum) Each speaker is to keep their comment period to three minutes to allow sufficient time for others Comments are to be an opportunity to address the Council on items not on the agenda. Individuals who wish to address the Council must have registered prior to the meeting. Notes: Pledge of Allegiance Approval of minutes of (1) Special City Council Worksession of May 12,2009 and (2) Regular City Council Meeting of May 12, 2009 PRESENTATION 1. Presentation and receipt of City of Richfield Comprehensive Annual Financial Report for fiscal year ended December 31, 2008 (Council Memo No. 91) Staff Report No. 101 Notes: COUNCIL DISCUSSION ~. Council discussion • Hats Off to Hometown Hits 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 implementing Identity Theft Prevention Program for Utility Division for City of Richfield S.R. No. 102 B. Consideration of approval of hiring Bonestroo to prepare Water Supply and Distribution Plan for City of Richfield. S.R. No. 103 Notes: 5. Consideration of items, if any, removed from Consent Calendar Notes: PUBLIC HEARING 6. Public hearing and second reading of transitory ordinance authorizing upgrade or . replacement of HVAC, lighting and refrigeration equipment at Richfield Ice Arena and resolution authorizing summary publication of transitory ordinance Staff Report No. 104 Notes: RESOLUTION 7. Consideration of resolution adopting Dutch Elm Diseased boulevard tree removal policy .Staff Report No. 105 Notes: OTHER BUSINESS 8. Consideration of award of contract to North Star Tree Care for diseased boulevard trees removal for amount not to exceed $99,000 Staff Report No. 106 Notes: CITY MANAGER'S REPORT 9. City Manager's report Notes: 10. Claims and payrolls Open forum (additional 15 minutes if more time needed after first Open Forum and by majority vote of the City Council) Each speaker is to keep their comment period to three minutes to allow sufficient time for others. Comments are to be an opportunity to address the Council on items not on the agenda. lndividuals who wish to address the Council must have registered prior to the meeting. Notes: 11. Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9738. CITY OF RICHFIELD, MINNESOTA Office of City Manager May 21, 2009 Council Memorandum No. s9 The Honorable Mayor and Members of the City Council. Subject: Housing Proposal for the Vacant Candlewood Parcel and Southern Portion of Former Public Works Garage (Worksession Agenda Item No. 1 ) Council Members: Accessible Space, Inc. (ASi) and Twin City Christian Homes (TCCH) are considering the development of two housing projects. The first is an accessible, affordable 51-unit housing project for very low-income (30% AMI) seniors age 62 or older. The second housing project is a proposed 15-unit project for persons with physical disabilities to` live independently in the community. ASi is a national nonprofit organization headquartered in St. Paul that provides accessible, affordable housing, assisted/supportive living and rehabilitation services to very-low income adults with physical disabilities and seniors for more than 30 years. To date ASi`s total number of completed buildings is 101 in 27 states, with approximately 39 of the buildings located in Minnesota. TCCH has been developing and managing senior living communities throughout the Twin Cities for more than 25 years. Currently TCCH`owns and operates the 161-unit senior housing development in Richfield, Mainstreet Village. ASi will act as the developer for the projects and TCCH will be the property management agent for the projects when they are completed. The 51-unit senior housing project is proposed to be located on the 1.13 acre site at 301 77th Street West, also known as the `Vacant Candlewood Parcel'. The site was purchased by the Housing and Redevelopment Authority (HRA) in 1998, and since that time has been vacant. The proposed site for the 15-unit housing project is the .94 acre site of the former south half of the Public Works Maintenance Facility. There are no additional parcels that need to be acquired for the proposed projects. In order to develop the site for housing, a change in rezoning (from "C-2 General Commercial to "MU-R Mixed Use Regional") and a Comprehensive Plan amendment will .need to be completed. Before expending great deals of time and money on preparing an application, ASi/TCCH requested an opportunity to present their proposal to the City Council in order to get preliminary input from the Council and discern local support for their proposal. The financial feasibility of the project is somewhat dependent on City and HRA financial support to ASi/TCCH. For the development of the site ASi/TCCH will be applying for. HUD funding through two programs, Section 202 and Section .811. The HUD funding. allows for the capital advance to finance the construction of the projects as well as providing rent subsidies to make the project affordable. The funding source, however, uses "local financial support" as an evaluating criteria. A price reduction (or outright donation) would make these projects much more likely to get approval. ASi/TCCH, therefore, are requesting land donation or heavily reduced land prices. ASi/TCCH will not be requesting tax increment financing (TIF) for their proposed projects. However,"to compensate for a potential donation of the land, the City/HRA should create a Housing TIF District in order to recover the costs of the land; this would guarantee that the City/HRA would receive back value of the properties. If the City Council is receptive to this concept then ASi/TCCH would proceed forward with the proposed financing. Even with TIF, the new development would pay new "base" taxes to the City, County and School District. ASi and TCCH will provide the City Council with a preliminary presentation of their concept plan at the May 26, 2009 Worksession. `ectf Ily submitted, i .~ ~n L. D Manager SLD:cak Attachment Email: Department Directors Assistant to the City Manager Examples of Section 202 Housing by -3 o ~' o ~' ~, ~ fl. ... r* ° O ~ ~ c 0 0 a o a~ ~ C" vG c ~ ~ ~ ~ ~ ~ ~ ~ o ~ ~ ~ ,E .. m / Aa ~2 ' ' { _ , i ~- ~. ~ ~ y -~~ ~ ~ ~ i [; "~ "~' i ~ ~I ; ~~ ~ ~ ~~~$ x `~% ~ f - r 4 ~ ~~' .... ~~~._ f s~ _v^ e w. w .~~ ( ~ { ' ng ~ e . -~$': s yy C y _ 3 ~ ~ ~ ~ ~ i =~_. ~~. ~ ~ o ^ ~ c ~ ~ v ~ ~~ ~ ~ ... ~ ~ ~' o ry~ V ~1 ~_^ 3~ ~}a f 3#I` ~. ((~~ 4f. 3~ $+ p- {{~~ ~ kii ~ ~ ~f ~. r r 1 ~ ~ ~,* ` " . ~~ Y s ~r.w ~ ~. ,, ~ 4 V V ~ 14 ~q l.~ ~5 "' 7 yXL y 1 yV k n ~a /~.., , '° i _ 11 F~, 'e ~ ~ ;~ -s .r ,.d ~. C ~ o ~~ ~ ~ ~ ~ a ~ ~ o ~ ~~ -. M~ ..~.y~ i'cy ~ ~,. .w ~~ ak r~:. _. ®~ fix! ~Rli'.. t ~~~ !f ! ~ P ~~ ~~S ~'~~; ; a ~r ~~r ~~~' ~~ .f "`~` ,F a ~. ~ R'`s ~ '. 9:. "' :~. r ~; ~ . . ,,, ~: ~® ...:mss .wr ®s ...rr~ ..r .,~ . 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"~ t: ~ .a rMna ( ~ ~~~~~ _ '~a` ..'si S.k,. , ~' 4,.rI 6 p• 4 Y ~ ~ :~ ~ ~ ~ t l >~ ~ ~ 0 0 A ~ ~' e~ ~ O fD ~'! y "'! ... ~ a n D ~ A~ A~ '~ '~ t9 Q ~-r ~ ~ ~ C~ ~ ~ o ~ ~ ~ ~ ~ "o a ~ 0 B ~ ~ CITY OF RICHFIELD, MINNESOTA Office of City Manager May 21, 2009 Council Memorandum No. 90 The Honorable Mayor and Members of the City Council Subject: Arterial Roads Study (Worksession Agenda Item No. 2 ) Council Members: The Transportation Commission is nearing completion of the Arterial. Roads Study which will produce design concept recommendations for the Council's consideration on Portland, Nicollet, Lyndale and Penn Avenue arterials. The Commission's preliminary recommendation is to convert all four arterials to three- lanes (Concept B/B2). An open house was held on Wednesday, May 20, 2009 for the public to comment on the Commissions draft recommendations for Portland, Nicollet and Penn Avenues and provide additional input on Lyndale Avenue. Attached is the study schedule, -study area -map, and both Concepts B and B2 that were selected by the commission to move forward for public comment. The goal of the study is to determine concepts for future reconstruction of the arterials, final design details will not be considered until actual projects are funded and are moving forward to construction. At the May 26, 2009 Council Worksession, staff will review the study process and design concepts considered prior to the Transportation Commission's June 3, 2009 meeting where they will make their final recommendations for Council consideration. d, SLD:cak Email: Department Directors Assistant to the :City Manager City Manager ~ .~. ~ ~1 II II ~ ~ ~ O ~ ~ p ~~~y Vp~~ ~ 3 3 ~ O ~ ~ \V ~ 1~ W O K ~ ~ < !D N '~" 3 O i.i ^, ia/ ~. C7 ~. 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PAUL IS~1T~cffdi~lATIOhJAL AIRPOI?7 o~ a -„ rn P D ~. i0 R7 ~ iEl ~ D r H ~ a ~ ~ rn ~ rn w an a ~ ~ ~ O n y N ~ 6 r Py °o rre a F ~o -I ~ m ~ ~ ~ ~ m Q~ rce g-,7~ (/1 R/1 ~ ~-i C -G ~~~ ''~ :,~ ~~ O '~ fl ~ ~ ~ < (~ Z C N ~..n~ c D ® L1. p t ~ ~ ° C1 ® ~ n ~ ~ ~ ~ p ,~ ~_. r -, i~ n a -~, m r O ~ . ~:~~ ~, -y `~~~ ~ ~.i~;a .~'. ~' r N ~~ -•~ ~ ~ m rn -a N ~q, D ~"y V N ~ K... °o rn ~ ti ~ m ~ ~ --~ -~ rn 6I9 ~ P77 H N ~-$ -i C u (~ ~~~ ~a ~- ~; ~:_ ~. ~, -~. s~ o~o~~~~~ c cD ro ~ ~ .~ ~• ~ ~ C1 ~- ~, ro ~~ -+ ~ ~ o. ° ;~ :s n rn ro cD fl n N ~- CI_ r cn --~ J CITY COUNCIL MINUTES Richfield, Minnesota Special Worksession May 12, 2009 CALL TO ORDER The meeting was called to order by Mayor Goettel at 5:30 p.m. ROLL CALL Members Present: Debbie Goettel, Mayor; Sue Sandahl; Pat Elliott; Fred Wroge; and Tom Fitzhenry. Staff Present: Steven Devich, City Manager; Mike Eastling, Public Works Director; John Stark, Community Development Director; Kristin Asher, City Engineer; Chris Link, Street Maintenance Supervisor; Christine Costello, Community Development Coordinator; and Cheryl Krumholz, Recording Secretary. Item # I DISCUSSION REGARDING DUTCH ELM DISEASE TREE REMOVAL POLICY COUNCIL MEMO NO. 71) Don .Miller and Susan Burks, Minnesota DNR representatives, discussed the Dutch Elm Disease (DED) tree removal guidelines, including, notification timeline, beetle and fungus disease progression, and tree identification. Public Works Director Eastling requested City Council guidance on elements of the DED tree removal policy including time limit for removal of private and boulevard trees, summer removal cut-off date, summer removal by contractor or City staff, and funding options. Mayor Goettel stated a more aggressive tree removal program until August 1 seems appropriate. Council Member Sandahl expressed support for expanding the use of franchise fees to have a private contractor to remove trees that staff is unable to get to because of other services needing to be performed. City Manager Devich explained the issues of staff having adequate time to remove DED boulevard trees with the current 20 day deadline. He added the funding source needs to be identified because this is a new level of service previously not in place. Council Member Sandahl stated the City has encouraged the planting of boulevard trees with residents doing basic maintenance and if they're now asked to share in the removal cost, she suspected there would be resistance. Mayor Goettel agreed to use franchise fees since all residents share the enjoyment of the trees. Special Worksession Minutes -2- May 12, 2009 Council Member Wroge stated boulevard replacement trees are various species, not canopy- type trees. He suggested boulevard trees not be replanted but rather be placed in the resident's yard so it becomes their responsibility. Council Member Wroge said there needs to be an effort of saving trees and aggressively removing DED trees. Council Member Elliott expressed support for franchise fees to cover summer removal. He added there is a time for residents to participate in the costs in amenities. City Manager Devich discussed a potential franchise fee increase and what it could cover in tree removal costs. Council Member Fitzhenry stated he supported franchise fees for this service with staff continuing the tree removal in the winter. Council Member Sandahl said she did not oppose charging residents but franchise fees should be used for now. Mayor Goettel concluded that increasing franchise fees should be part of the upcoming budget process. Item #2 DISCUSSION REGARDING HOUSING PROPOSAL FOR FORMER CITY GARAGE SITE (COUNCIL MEMO NO. 72) City Manager Devich stated. that the housing developer Ron Clark Construction and Design (Ron Clark) is considering the development of a rental housing project at 211 76th Street West, 7600, 7608, and 7700 Pillsbury Avenue. Community Development Director Stark explained the 3.3 acre site contains a former mortuary building that the Housing and Redevelopment Authority (HRA) purchased in 2000; since that time it has been used for City storage, the north half of the former Public Works Maintenance Facility, and three adjacent single-family parcels on Pillsbury. Ron Clark purchased one of the residential parcels in 2008 and the HRA purchased and cleared another in 1999. The remaining parcel is still privately owned, and at this time the owner is not interested in selling. Community Development Director Stark discussed the Comprehensive Plan and zoning requirements. He also discussed the financial feasibility of the project dependent upon the developers cost to acquire, demolish, and environmentally remediate the parcels. No high level tax increment financing (TIF) discussions have taken place. Ron Clark, Ron Clark Construction & Design, discussed the company's background and their current development sites in the metro area, specializing in residential communities. The rental versus ownership of units is based upon current market trends. Gary Tushie, Tushie Montgomery Associates, reviewed the proposed site plan for 70th Street/PillsburyRvenue, including unit bedroom size and number, amenities, parking, and sidewalks. Parking includes underground stalls for residents and surface stalls for guests - an approximate 1.75 stall space per unit. He also discussed the reduced setback from the railroad tracks. Community Development Director Stark discussed TIF guidelines related to the site. Council Member Wroge stated there is a "gentlemen's agreement" that when the former garage site land was sold, that money would be used to pay down the new maintenance facility bond debt. Council Member Wroge spoke in support of moving forward with a project proposal. Council Member Elliott disclosed that he was involved in sheet metal litigation on one of the Ron Clark projects but found no defects. Special Worksession Minutes . -3- May 12, 2009 The City Council consensus was to proceed with the project proposal. Item#3 UPDATE REGARDING STORMWATER CAPITAL IMPROVEMENT PROGRAM (COUNCIL MEMO NO. 73) City Engineer Asher made a PowerPoint presentation on the Stormwater Capital Improvement Program. (City Clerk's File No. C-450) Mayor Goettel expressed concerns that the project to address flooding at 65th/66th Streets and Newton/Morgan Avenues was not scheduled until 2012. She suggested the City Council review the list of priorities. Council Member Wroge agreed that concentration should be on resident-impacted areas. The City Council consensus was to continue discussion to a future City Council Worksession. ADJOURNMENT The meeting was adjourned by unanimous consent at 6:56 p.m. Date Approved: Cheryl Krumholz Recording Secretary Debbie Goettel Mayor Steven L. Devich City Manager J CITY COUNCIL MEETING MINUTES Richfield, Minnesota Regular Meeting May 12, 2009 CALL TO ORDER The meeting was called to order by Mayor Goettel at 7:03 p.m. ROLL CALL Members Present: Debbie Goettel, Mayor; Sue Sandahl; Pat Elliott; Fred Wroge; and Tom Fitzhenry. Staff Present: Steven L. Devich, City Manager; Mike Eastling, Public Works Director; .John Stark, Community Development Director; Barry Fritz, Public Safety Director; Jim Topitzhofer, Recreation Services Director; Corrine Heine, City Attorney; and Cheryl Krumholz, Recording Secretary. OPEN FORUM Debra Clarke, 6719 - 4th Avenue, spoke about her concerns related to the impacts on Heredia Park, environment, health, and property values due to the proposed expansion of the new City Hall. Chris Simenson, 6707 - 4th Avenue, spoke in opposition to the Heredia Park impacts, especially the tennis courts becoming a parking lot, based upon the April 2009 site plan for the proposed new City Hall expansion. PRESENTATION OF COLORS AND PLEDGE OF ALLEGIANCE Mayor Goettel led the audience in the Pledge of Allegiance. APPROVAL OF MINUTES Council Meeting Minutes -2- May 12, 2009 M/Wroge, S/Elliot to approve the minutes of (1) Special City Council Worksession of April 28, 2009; and (2) Regular City Council Meeting of April 28, 2009. Motion carried 5-0. Item #1 PRESENTATION OF CERTIFICATES OF APPRECIATION TO MISS RICHFIELD AMBASSADORS AND JUNIOR AMBASSADORS (COUNCIL MEMO NO. 74) Council Member Sandahl presented certificates of appreciation to Miss Richfield Ambassadors and Junior Ambassadors. Item #2 PRESENTATION OF RICHFIELD FOURTH OF JULY COMMITTEE REGARDING RICHFIELD'S 30TH FOURTH OF JULY COMMEMORATING FESTIVAL FOUNDER AND FORMER CITY COUNCIL MEMBER HOWARD BUNCE Jodi Olson, Fourth of July Committee representative, presented a plaque honoring Fourth of July festival founder and former City Council Member Howard Bunce. The plaque was accepted by Bob Houlton, 29 year Fourth of July Committee member, on behalf of the Bunce family. Item #3 PRESENTATION OF PROCLAMATION DESIGNATING MAY 13, 2009 AS WORLD FALUN DAFA DAY Mayor Goettel presented a proclamation designating May 13, 2009 as World Falun Dafa Day. Item #4 PRESENTATION OF PROCLAMATION DESIGNATING MAY 17-23, 2009 AS SALUTE TO SMALL BUSINESS WEEK IN RICHFIELD Council Member Wroge presented a proclamation designating May 17-23, 2009 as Salute to Small Business Week in Richfield. Pat Brekken, Chamber Board Chair, recognized Richfield's small businesses -HUB Jewelers and LeRum Auto. Item #5 PRESENTATION OF RICHFIELD TOURISM PROMOTION BOARD, INC. FINANCIAL REPORT FOR YEAR ENDED DECEMBER 31, 2008 Council Meeting Minutes -3- May 12, 2009 Russ Susag, 6600 Pleasant Avenue #141, presented the Richfield Tourism Promotion Board, Inc. financial report for the year ending December 31, 2008. Item #6 ANNUAL MEETING WITH ADVISORY BOARD OF HEALTH goals. Matt Tietje, Advisory Board of Health Chair, provided a report on the Board's activities and Item #7 .PRESENTATION REGARDING NATIONAL PUBLIC WORKS WEEK Public Works Director Eastling recognized the efforts of the Public Works Department. Item #8 PRESENTATION OF PROCLAMATION DESIGNATING MAY 10-16, 2009 AS NATIONAL POLICE WEEK Council Member Fitzhenry presented to Public Safety Director Fritz a proclamation designating May 10-16, 2009 as National Police Week. Item #9 I COUNCIL DISCUSSION CITY COUNCIL PARTICIPATION IN JULY 4 PARADE METROPOLITAN COUNCIL TRANSPORTATION ADVISORY BOARD (TAB) REPRESENTATIVE HATS OFF TO HOMETOWN HITS The City Council agreed to participate in the July 4 parade by each riding their bike; rather than riding a float. M/Goettel, S/Elliott to support Council Member Sandahl as the Metropolitan Council Transportation Advisory Board representative and that a letter of support be submitted. Motion carried 5-0. Mayor Goettel reported the Human Rights Commission (HRC) Chair has requested the City Council remove two Human Rights Commission members because of lack of meeting attendance and the inability to contact them. M/Goettel, S/Wroge to remove Johnathon McClellan and Laura Guyton as Human Rights Commission members. Motion carried 5-0 Council Meeting Minutes -4- May 12, 2009 Recreation Services Director Topitzhofer reported on the upcoming Memorial Day unveiling of the next phase of the Honoring All Veterans Memorial granite tablets. Council Member Sandahl announced the May 20 Arterial Road Study open house. Council Member Fitzhenry recognized the efforts of the Police Reserves. Council Member Fitzhenry acknowledged the positive comments frequently made by AI Malmberg, resident and KSTP radio host. City Manager Devich stated Richfield's motor vehicle licensing services have expanded to include duplicate driver's licenses and fishing and hunting licenses. The City is awaiting approval for issuing full driver's license services. Mayor Goettel announced the Farmers' Market is open and that she has Mayor's Hour there the last Saturday morning of each month. Council Member Sandahl stated that there are no final plans on the construction of a new City Hall or changes to Heredia Park. She invited residents to attend the next CHAT III meeting on May 28 at 6:30 p.m. at the Maintenance Facility. Item #10 COUNCIL APPROVAL OF AGENDA M/Wroge, S/Sandahl to approve the agenda. Motion carried 5-0. Item #11 CONSENT CALENDAR A. Consideration of approval of resolution authorizing amendment to conditional use permit to allow day care services for total up to 244 children at Hope Presbyterian Church, 7132 Portland Avenue S.R. No. 96 RESOLUTION NO. 10238 RESOLUTION AUTHORIZING AN AMENDMENT TO A CONDITIONAL USE PERMIT TO ALLOW DAY CARE SERVICES FOR UP TO 244 CHILDREN AT 7132 PORTLAND AVENUE This resolution appears as Resolution No. 10238. B. Consideration of approval of purchase from Weekend Freedom for two new zero turn mowers for use by Parks Maintenance Division in amount of $29,391.87 S.R. No. 97 M/Sandahl, S/Goettel to approve the Consent Calendar. Motion carried 5-0. Council Meeting Minutes -5- May 12, 2009 Item #12 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT CALENDAR None. Item #13 PUBLIC HEARING AND SECOND READING OF TRANSITORY ORDINANCE AUTHORIZING PLANNING, DESIGN, AND CONSTRUCTION OF LINCOLN ATHLETIC COMPLEX AND RESOLUTION AUTHORIZING SUMMARY PUBLICATION OF TRANSITORY ORDINANCE (CONTINUED FROM APRIL 28; 2009) S.R. NO. 98 Council Member Wroge presented Staff Report No. 98. Council Member Wroge acknowledged the efforts of the task force for the good decision- making on the renovation and the site plan. M/Wroge, S/Sandahl to close public hearing. Motion carried 5-0. M/Wroge, S/Goettel that this constitutes the second reading of Bill No. 2009-11, Transitory Ordinance 18.65 authorizing planning, design, and construction of Lincoln Athletic Complex, that it be published in the official newspaper and that it be made part of these minutes, and that the following resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 10239 RESOLUTION APPROVING SUMMARY PUBLICATION OF A TRANSITORY ORDINANCE APPROVING A CAPITAL IMPROVEMENT PROJECT FOR THE RENOVATION OF LINCOLN ATHLETIC COMPLEX, PURSUANT TO RICHFIELD CITY CHARTER SECTION 8.04 Motion carried 5-0. This resolution appears as Resolution No. 10239. Item #14 CONSIDERATION OF RESOLUTIONS IMPOSING CIVIL ENFORCEMENT ON ESTABLISHMENTS IN RICHFIELD THAT UNDERWENT TOBACCO COMPLIANCE CHECKS CONDUCTED BY RICHFIELD PUBLIC SAFETY STAFF AND FAILED BY SELLING TOBACCO TO UNDERAGE YOUTH S.R. NO. 99 Mayor Goettel presented Staff Report No. 99. Speedway Super America - 826 West 66th Street -Jason Dzick, Speedway Super America representative, admitted the violation occurred and stipulated to the suspension and penalty. Council Meeting Minutes -6- May 12, 2009 M/Goettel, S/Wroge that the following resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 10240 RESOLUTION SUSPENDING THE TOBACCO LICENSE FOR SUPER AMERICA, 826 WEST 66TH STREET AND IMPOSING A CIVIL PENALTY FOR SECOND TIME TOBACCO COMPLIANCE FAILURE Motion carried 5-0. This resolution appears as Resolution No. 10240. Richfield Amoco - 7544 Lyndale Avenue - No representative present. City Attorney Heine explained that the notification letter to attend this meeting states that if they do not appear, the enforcement resolution will be adopted. M/Goettel, S/Wroge that the following resolution be adopted and that it be made part of these minutes RESOLUTION NO. 10241 RESOLUTION SUSPENDING THE TOBACCO LICENSE FOR RICHFIELD AMOCO, 7544 LYNDALE AVENUE SOUTH AND IMPOSING A CIVIL PENALTY FOR SECOND TIME TOBACCO COMPLIANCE FAILURE Motion carried 5-0. This resolution appears as Resolution No. 10241. Item #15 CONSIDERATION OF RESOLUTION GRANTING SITE PLAN APPROVAL FOR RENOVATION OF LINCOLN PARK, 7500 PLEASANT AVENUE S.R. NO. 100 Council Member Fitzhenry presented Staff Report No. 100. Recreation Services Director Topitzhofer discussed the proposed site plan, including a green screen with privacy fence, addition of a playground, and improved lighting and parking. , Community Development Director Stark stated planning staff support the site plan. M/Fitzhenry, S/Elliott that the following resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 10242 RESOLUTION GRANTING APPROVAL OF A SITE PLAN FOR 7500 PLEASANT AVENUE Motion carried 5-0. This resolution appears as Resolution No. 10242. Council Meeting Minutes -7- May 12, 2009 Item #16 CITY MANAGER'S REPORT City Manager Devich discussed the change to cone-notice process for continuing non- compliant foreclosed properties on maintenance issues before the work is assessed to the taxes. City Manager Devich discussed a proposed Adopt-A-House Program to address property maintenance on vacant homes. City Manager Devich discussed that staff learned earlier today, through Congressman Ellison's office, that it is not likely for Richfield to received federal transportation funding for the 77th Street tunnel. Public Works Director Eastling explained- how the project has been split into smaller components for funding, as requested by the Congressman's office -design, right of way, and construction. Mayor Goettel discussed a recent Regional Council of Mayor's meeting where the Brookings Institute reported on transit around the country applauded the overlay vision of Richfield's Penn Avenue area. Item #17 CLAIMS AND PAYROLL M/Wroge, S/Sandahl that the following claims and payrolls be approved: U.S. BANK 05-12-09 A/P Checks: 185506 - 185856 PAYROLL 57479 - 57798, 41422 - 41425 $ 1, 066,107.63 $ 541,291.29 TOTAL Motion carried 5-0. OPEN FORUM None. $ 1, 607, 398.92 The City Council meeting was adjourned by unanimous consent at 8:40 p.m. Date Approved: Cheryl Krumholz Recording Secretary Debbie Goettel Mayor Steven L. Devich City Manager CITY OF RICHFIELD, MINNESOTA Off ce of City Manager May 21, 2009 Council Memorandum No. 91 The Honorable Mayor and Members of the City Council Subject: 2008 City Financial Reports (Council Agenda Item No. 1 ) Council Members: The City's auditor's, Malloy, Montague, Karnowski; Radosevich, & Co., P.A. will, make a presentation of the 2008 financial information at the May 26, 2009 City Council Meeting. Accordingly, as part of this memo is a CD ROM that includes the following: • 2008 Comprehensive Annual Financial Report (CAFR) • 2008 Special Purpose Audit .Reports on Single Audit, Internal Controls, and Compliance With Laws and Regulations • 2008 Management Report for City of Richfield • 2008 Housing and Redevelopment Authority Financial Report In addition, hard copies of the 2008 Special Purpose Audit Reports on Single Audit, Internal Controls, and Compliance with Laws and Regulations and the 2008 Management Report for City of Richfield are attached. Council Members will want to bring these two reports to the meeting, as the City's auditors will be discussing these reports as part of their presentation. If you have any questions regarding any of the reports prior to the meeting, please contact Chris Regis, Finance Manager, or me. SLD:cak Attachment E-mail: Department Directors Assistant to the City Manager ~c~s ~~ ~ t ~ AGENDA SECTION: PRESENTATION AGENDA ITEM # 1 REPORT # 101 ~~ STAFF REPORT CITY COUNCIL MEETING MAY 26, 2009 REPORT PREPARED BY: CHRIS REGIS, FINANCE MANAGER NAME, 77TLE COUNCIL PRESENTER: REVIEWED BY CITY MANAGER: a ITEM FOR COUNCIL CONSIDERATION: Receipt of the City of Richfield Comprehensive Annual Financial Report (CAFR) for the fiscal ear ended December 31, 2008. I. RECOMMENDED ACTION: By Motion: Accept the Comprehensive Annual Financial Report of the Cit for the ear ended December 31, 2008. II. BACKGROUND The City's auditing firm, Mallow, Montague, Karnowski, Radosevich, & Co., P.A. (MMKR), has completed the annual audit of the City's financial records for the fiscal year ended December 31,2008. A representative of MMKR is present tonight to make a brief presentation on the 2008 financial information and answer questions. In addition, the CAFR will be submitted to the State of Minnesota pursuant to State law and to~the Government Finance Officers Association for the Certificate of Achievement for Excellence in Financial Reporting program. III. BASIS OF RECOMMENDATION A. POLICY • Action to be taken at the May 26, 2009 City Council meeting is the official receipt of the December 31, 2008 City of Richfield Comprehensive Annual Financial Report by the City Council. 0526CAFTReceipt The City's auditor has performed an audit of the City's financial records for the year ended December 31, 2008 and prepared reports to the City Council concerning legal compliance and internal controls. B. CRITICAL ISSUES • Action on this item is requested at the May 26, 2009 City Council meeting. C. FINANCIAL • N/A D. LEGAL • The CAFR will be submitted to the State of Minnesota, pursuant to State law. E. ENVIRONMENTAL CONSIDERATIONS • In an effort to reduce paper costs, the 2008 CAFR, 2008 HRA Financial Report, 2008 Single Audit Report and the 2008 Audit Management Report will be delivered to the Council in the form of a CD-ROM. IV. ALTERNATIVE RECOMMENDATION(S~ • The City Council could ask the auditors for further explanations of their findings at a future Study Session. - V. ATTACHMENTS • None. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Bill Lauer, Principal, Malloy, Montague, Karnowski, Radosevich, & Co., P.A. AGENDA SECTION: CONSENT AGENDA ITEM # !~A REPORT # 102 r~ STAFF REPORT CITY COUNCIL MEETING MAY 26, 2009 REPORT PREPARED BY: ROBERT HINTGEN, ASST. UTILITY SUPERINTENDENT NAME, TITLE DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: SIGNATURE /, ITEM FOR COUNCIL CONSIDERATION: Consideration of a resolution authorizing the approval of an Identity Theft Prevention Program. L RECOMMENDED ACTION: By Motion: Approve the attached resolution adopting the implementation of an Identity Theft Prevention Program for the Utility Division of the City of Richfield. II. BACKGROUND The attached Identity Theft Prevention Program has been developed by the City Attorney for the City of Richfield Utility Division to be in compliance with the Federal Trade Commission's Red Flags Rule which implements Section 114 of the Fair and Accurate Credit Transactions Act of 2003. Under this program every financial institution and creditor is required to establish an "Identity Theft Prevention Program" tailored to its size, complexity and the nature of its operation. The program must contain reasonable policies and procedures to; • Identify red flags for new and existing accounts. • Detect red flags that have been incorporated into the program. • Respond appropriately to any red flags that are detected. • Ensure the program is updated periodically. 0526091dentityTheft III. BASIS OF RECOMMENDATION A. POLICY • The proposed program must be approved by the City Council prior to implementation. B. CRITICAL ISSUES • To be in compliance with the Federal Trade Commission's Red Flag. Rule the City is required to implement this Identity Theft Program. C. FINANCIAL • The implementation of this program has no impact on the City's finances. D. LEGAL • The City Attorney's office prepared the attached Identity Theft Prevention Program. E. ENVIRONMENTAL CONSIDERATIONS • None IV. ALTERNATIVE RECOMMENDATION~S~ • Council can choose to reject the program, however this is a mandatory program directed by the Federal Trade Commission. V. ATTACHMENTS • Resolution Proposed Identity Theft Prevention Program. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None ~~-- RESOLUTION NO. RESOLUTION AUTHORIZING THE CITY OF RICHFIELD TO ADOPT THE FOLLOWING IDENTITY THEFT PREVENTION PROGRAM WHEREAS, the Federal Trade Commission has mandated that Utility operations establish a policy and procedure for protecting individuals from identity theft; and WHEREAS, the City of Richfield's Utility Billing system comes under the purview of the Department of the Treasury requirement; and WHEREAS, the City of Richfield is committed to protect the identity of its customers with respect to its Utility Billing operations; and WHEREAS, the City has developed a policy that would satisfy this requirement and provide for identity theft protection. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Richfield hereby adopts-the Identity Theft Prevention Program and orders its immediate implementation. 2049. Adopted by the City Council of the City of Richfield, Minnesota this 26th day of May, Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk 0526091dentityTheft 4A a City of Richfield Identity Theft Prevention Program Effective beginning, May 26, 2009 4A-3 L PROGRAM ADOPTION The City of Richfield ("Utility'') developed this Identity Theft Prevention Program ("Program") pursuant to the Federal Trade Commission's Red Flags Rule ("Rule"), which implements Section 114 of the Fair and Accurate Credit Transactions Act of 2003. 16 C. F. R. § 681.2. After consideration of the size and complexity of the Utility's operations and account systems, and the nature and scope of the Utility's activities, the City Council determined that this. Program was appropriate for the City of Richfield, and therefore approved this Program on May 26, 2009. II. PROGRAM PURPOSE AND DEFINITIONS A. Fulfilling requirements of the Red Flags Rule. Under the Red Flag Rule, every financial institution and creditor is required to establish an "Identity Theft Prevention Program" tailored to its size, complexity and the nature of its operation. Each program must contain reasonable policies and procedures to: 1. Identify relevant Red Flags for new and existing covered accounts and incorporate those Red Flags into the Program; 2. Detect Red Flags that have been incorporated into the Program; 3. Respond appropriately to any Red Flags that are detected to prevent and mitigate Identity Theft; and 4. Ensure the Program is updated periodically, to reflect changes in risks to customers or to the safety and soundness of the creditor from Identity Theft. B. Red Flags -Rule definitions used in this Program The Red Flags Rule defines "Identity Theft" as "fraud committed using the identifying information of another person" and a "Red Flag" as a pattern, practice, or specific activity that indicates. the possible existence of Identity Theft. According to the Rule, a municipal utility is a creditor subject to the Rule requirements. The Rule defines creditors "to include finance companies, automobile dealers, mortgage brokers, utility companies, and telecommunications companies. Where non-profit and government entities defer payment for goods or services, they, too, are to be considered. creditors." All the Utility's accounts that are individual utility service accounts held by customers of the utility whether residential, commercial or industrial are covered by the Rule. Under the Rule, a "covered account" is: Any account the Utility offers or maintains primarily for personal, family or household purposes, that involves multiple payments or transactions; and y R-4 2. Any other account the Utility offers or maintains for which there is a reasonably foreseeable risk to customers or to the safety and soundness of the Utility from Identity Theft. "Identifying information" is defined under the Rule as "any name or number that may be used, alone or in conjunction with any other information, to identify a specific person," including: name, address, telephone number, social security number, date of birth, government issued driver's license or identification number, alien registration number, government passport number, employer or taxpayer identification number, unique electronic identification number, computer's Internet Protocol address, or routing code. IIL IDENTIFICATION OF RED FLAGS. In order to identify relevant Red Flags, the Utility considers the types of accounts that it offers and maintains, the methods it provides to open its accounts, the methods it provides to access its accounts, and its previous experiences with Identity Theft. The Utility identifies the following red flags, in each of the listed categories: A. Notifications and Warnings From Credit Reporting Agencies Red Flags 1) Report of fraud accompanying a credit report; 2) Notice or report from a credit agency of a credit freeze on a customer or applicant; 3) Notice or report from a credit agency of an active duty alert for an applicant; and 4) Indication from a credit report of activity that is inconsistent with a customer's usual pattern or activity. B. Suspicious Documents Red Flags 1. Identification document or card on which a person's photograph, physical description, or other identifying information is not consistent with the person presenting the document; and 2. Other document with information that is not consistent with existing customer information_ C. Suspicious Personal Identifying Information Red Flags 1. Identifying information presented that is inconsistent with other information the customer provides; 2 `~. ~1-- 5 2. Identifying information presented that is the same as information shown on other applications that were found to be fraudulent; 3. Identifying information presented that is consistent with fraudulent activity; 4. An address or phone number presented that is the same as that of another person; and 5. A person's identifying information is not consistent with the information that is on file for the customer. D. Suspicious Account Activity or Unusual Use of Account Red Flags 1. Change of address for an account followed by a request to change the account holder's name; 2. Payments stop on an otherwise consistently up-to-date account;. 3. Account used in a way that is not consistent with prior use; 4. Mail sent to the account holder is repeatedly returned as undeliverable; 5. Notice to the Utility that a customer is not receiving mail sent by the Utility; 6. Notice to the Utility that an account has unauthorized activity; 7. Breach in the Utility's computer system security; and 8. Unauthorized access to or use of customer account information. E. Alerts from Others Red Flag 1. Notice to the Utility from a customer, identity theft victim, law enforcement or other person that it has opened or is maintaining a fraudulent account for a person engaged in Identity Theft. IV. DETECTING RED FLAGS. A. New Accounts In order to .detect any of the Red Flags identified above associated with the opening of a new account,. Utility personnel will take the following steps to obtain and verify the identity of the person opening the account: Detect 1. Require certain identifying information such as name, residential or business mailing and service addresses, and telephone numbers; 2. Provide a copy of the bill to the owner of the residence or business per the request of the owner; 3. Review documentation showing the existence of a business entity; and 4. Independently contact the customer. 3 ~C~ B. Existing Accounts In order to detect any of the Red Flags identified .above. for an existing account, Utility personnel will take the following steps to monitor transactions with an account: Detect 1. Verify the identification of customers if they request information (in person,- via telephone, via facsimile, via email); and 2. Verify the validity of requests to change billing addresses and payment set up. V. PREVENTING AND MITIGATING IDENTITY THEFT In the event Utility personnel detect any identified Red Flags, such personnel shall take one or more of the following steps, depending on the degree of .risk posed by the Red Flag: Prevent and Mitigate 1. Continue to monitor an account for evidence of Identity Theft; 2. Contact the customer; 3. Change any passwords or other security devices that permit access to accounts; 4. Not open a new account; 5: Close an existing account; 6. Reopen an account with a new number; 7. Notify the Program Administrator for determination of the appropriate step(s) to take; 8. Notify law enforcement; or 9. Determine that no response is warranted under the particular circumstances: Protect customer identifying information In order to further prevent the likelihood of identity theft occurring with respect to Utility accounts, the Utility will take the following steps with respect to its internal operating procedures to protect customer identifying information: 1. Ensure complete and secure storage and destruction of paper documents and computer files containing customer information, including customer information relating to automatic payment plans; 2. Ensure that office computers are password protected and that computer screens lock after a set period of time; 3. Keep offices clear of papers containing customer information; 4. Ensure computer virus protection is up to date; and 5. Require and keep only the kinds of customer information that are necessary for utility purposes. 4 ~~-7 VI. PROGRAM UPDATES The Program Administrator will periodically review and update this Program to reflect changes in risks to customers and the soundness of the Utility from Identity Theft. In doing so, the Program Administrator will consider the Utility's experiences with Identity Theft situations, changes in Identity Theft methods, changes in Identity Theft detection .and prevention methods, and changes in the Utility's business arrangements with other entities. After considering these factors, the Program Administrator will determine whether changes to the Program, including the listing of Red Flags, are warranted. If warranted, the Program Administrator will update the Program and inform the City Manager of any updates to the Program. VII. PROGRAM ADMINISTRATION. A. Oversight Responsibility for .developing, implementing and updating this Program lies. with an Identity Theft Committee for the Utility. The Committee is headed by a Program Administrator who may be the head of the Utility or his or her appointee. Two or more other individuals appointed by the head of the Utility or the Program Administrator comprise the remainder of the committee membership. The Program Administrator will be responsible for the .Program administration, for ensuring appropriate training of Utility staff on the Program, for reviewing any staff reports regarding the detection of Red Flags and the steps for preventing and mitigating Identity Theft, determining which steps of prevention and mitigation should be taken in particular circumstances and considering periodic changes to the Program. B. Staff Training and Reports Utility staff responsible for implementing the Program shall be trained either by or under the direction of the Program Administrator in the detection of Red Flags, and the responsive steps to be taken when a Red Flag is detected. C. Service Provider Arrangements In the event the Utility engages a service provider to perform an activity in connection with one or more accounts, the Utility will take the following steps to ensure the service provider performs its activity in accordance with reasonable policies and procedures designed to detect, prevent, and mitigate the risk of Identity Theft. 1. Require, by contract, that service providers have such policies and procedures in place; and 2. Require, by contract, that service providers review the Utility's Program and report any Red Flags to the Program Administrator. 5 ~~ D. Non-disclosure of Specific Practices For the effectiveness of this Identity Theft Prevention Program, knowledge about specific Red Flag identification, detection, mitigation and prevention practices must be limited to the Identity Theft Committee who developed. this Program and to those employees with a need to know them. Any documents that may have been produced or are produced in order to develop or implement this program that list or describe such specific practices and the information those documents contain are considered "security information" as defined in Minnesota Statutes Section 13.37 and are unavailable to the public because disclosure of them would be likely to substantially jeopardized the security of information against improper use, that use being to circumvent the Utility's Identity Theft prevention efforts in order to facilitate the commission of Identity Theft. 6 AGENDA SECTION: AGENDA ITEM # - REPORT # J STAFF REPORT . CITY COUNCIL MEETING -MAY 26, 2009 CONSENT 4B 103 REPORT PREPARED BY: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of a work plan from Bonestroo to prepare a Water Supply and Distribution Plan for the City of Richfield. I. RECOMMENDED ACTION: By Motion: ,Ratify the hiring of Bonestroo to prepare a Water Supply and Distribution Plan for the Cit of Richfield. II. BACKGROUND The City of Richfield is responsible for providing clean, safe water to the residents and businesses in Richfield: The City's goal is to provide high quality services in the most economical manner. The purpose. of a Water Supply and Distribution Plan is to provide Richfield a planning tool for upgrades to our water supply, storage, and distribution system. In general, the work of the project includes the creation of a hydraulic model of Richfield's trunk water distribution system, and use of the model for analysis of the adequacy of the system to meet current and. projected demands placed on the system. Specifically, this report will; - • Analyze the performance of the existing water system. • Analyze potential redevelopment areas. • Analyze alternatives for constructing aback-up water supply. • Evaluate facilities that would be required to provide water service to potential customers outside Richfield's City limits. ROBERT HINTGEN, ASST. UTILITY SUPERINTENDENT - NAME, TITLE - SIGNATURE 0526Hydraulicmodel • Provide the required information for the Water Element of the City's 2008 Comprehensive Plan. Bonestroo has provided the City with language that has been included in the comprehensive plan and has started work consistent with a work plan to complete the necessary hydraulic model. The work took place in 2008 using 2008 budgeted funds. The main objective in hiring Bonestroo was to model .the complete water system in order to determine options for improving system performance and to establish a planning tool for any and all future upgrades. If the Council ratifies the contract with Bonestroo the hydraulic model will be completed in 2009. . III. BASIS OF RECOMMENDATION A. POLICY • The information obtained in this Water Supply and Distribution Plan is required for the Water Element of the City's 2008 Comprehensive Plan. • If the City is to contract with Bonestroo for the completion of the hydraulic model, City Council approval is necessary for the work order. B. CRITICAL ISSUES • Knowing the status of the water supply and distribution system is critical for the City to successfully plan for future- redevelopment. C. FINANCIAL • The work plan is estimated not to exceed $48,000 to be paid for using Water Utility Funds (51000-6103). • The original 2008 budget had a dollar amount of $20,000 for this project. The revised 2008 budget showed $48,000 of which $32,100 has been paid. _ • .The 2009 revised budget will have the remaining $15,900 added to complete the project. D. LEGAL • The City Attorney will be available to answer any questions. E. ENVIRONMENTAL CONSIDERATIONS • Water is an essential resource to the community and needs to be provided in a-clean and safe manner. IV. ALTERNATIVE RECOMMENDATi • The Council may chose n contract with Bonestroo. ATTACHMENTS • Bonestroo Water Supply a n Proposal. ~ VI. PRINCIPAL PARTIES EXPECTED AT MEETING ~ ~~-~ 2335 Nigf~wag3fiW St Pouf. MN 55tt3 Tel 65t•636-Q69Q Cax651.636-13f1 vuww5ane~tramtam Se~ternber 2B, 2007 Brian Young Gty of Richfield ~7q0 Portland Av~fue Rithffeld;. MN 55423-2599 Re: Wataa' Supply and laistKlbution Plan Prapasal M~ Q~Li~~~3~QQ Dear Brian; - We are-~leasedto presenttl>ispropr~satfar prafessianaFsenrices for preparing a°Water Supply auld aisiributian Plan far the City of RitfTFEeld. {7ur services will bee provided. in accordance with our firm's fTU~ter caiTtTactwith the Gtyof RidffleEd dated Apr125, zoos. Background and ~ngfieering Sernnces The purpose of this plan. is is provide t~clffieid a planning taaE for upgrades to your tnta~r supply= storage, - and d'istribfrtian sue: In general, the work of lire prflj~ includes the creation of a hydraulic rrmdel trf Richf"refd's trurfk water dishf6utlon systerrf, and use of the made! far analysts of the adegtfacy of the system to meet curref~t and proje~ed demands placed on the system SpecUicaUy, this report wilL• / Ana[yxe the performance of the existing water system, •r Analyze poterRlal redeveiopmerft areas, Analyze atteiTfafive5forc~nstructing aback-up supply connection to Minneapolis' water systen4 / Cya(uate faci!'~ies that wautd be required to provide water sefvke to patentia! arstomers outside Rlchf€eld City limits, anff / Profrlde the required information far die Water dement of the City`s x008 ~Comprelieffsive Plan.. Appendix A prayides a detailed work plant. Where appropriate, we have Identified work that wilt be completed by~he City Eompensa~on We propose ~ complete the Water Supgly and Distrf~ution Plan Update on an hourly basis, In accordance witif our standard billing rate schedtde. We propose anova-exceed fee of $A6,500, plus reiosbursable expenses The estimated COSt to complete-each task is sumfrrarizeii in the tables below Reimbursable (printlrig and mifeagej expenses are listed separately. We understand that theYvakre of th#a not to exceed st Po'~ SC Qnud RotftesteC rdlfiu~mukee Ctdragn 4 B-a PaQe2 Brian,Yattng September2l. 20Q1' Wa i e r Snp p!y & ©~ trib u t i a n Pla n a~rrrount cannot increase without #urther autharizaban front yot~. The terns and conditions of this proposal r~haliy include the intents of our rum's master contractwith the qty of Richi'ietd dated Apn'[ 25.2006. It is vary important t4 us that our services meet the €e=eds oi•yau. our dent. 54 after yon have had an €rppordtn~y to review this ~opasai, we would ire to hear ar+y conurterrts, questions. ar~d canes yon may have- if this proposal ~ aceeptabte, please s~ and retuni a copy of this let#er. aud+or¢ing usto proceed if there are any questions, please coq me at (651} 6t)4-4842. Yoursverytnlty~ Bfm1E=5Tti04. IidG Proposal is accepted: Cft`f DF RECt3FiE![) (../. ~/Lr gyp Mark d. tNalli~ AssociatetProject Manager ~9~~J ~~~~ ~ - ~~ - hate ~7 ZQ b (Prmtedrtameandtltlej . oats ~{~•' Cc~ -- ~ l sY•. ~f~P3 Appendix A . Scope a~ Engi~ieerii~g 5etvices A. Basic ~2'Ctl14:PS Task 1: Project initiation and Data Gcsfi~on Vile wiil review previous water system reprrrts and sappiement that data with more recent data on water system fadUties U1te wilt also facilitate and attend one meeting with Riclffetd staff This "1<+ck afi Meedrtg" . wiU Be used #o abtairt data from tine EU.y, and to get input an any changes modificafons~ ar improvements . tiw[youwordd tilre to see in the watersystem~ and review the 4ity's 20341 and ltltimate,tand 4lse Pian to terms of data cnliectian; we assume tfrat ~E4y staff vvlff P-avide us-with water use data, -rsaPpfng data {putoCAD and G45 shap~ites}, ate CtSr`s irartiat~r completed UUater Emerger-cy & Conservation Plan, aFrd iirate~' ,Sys~eiYi-"t~ecorEi-Plarts=" /~spetist-t~fttata needsis-attad~eti ~-~is propo5af Task L• 1Nater usage Review and i+rojectrons itYe will review litstar`tc water use data in order to establish existing water use patterns. and allocate water demands t4 the hydrauCc model 4f fife water d'~stritxrinon system {discussed be[aw in Task 3~. Nte wiA tsdlize fire Crty's Met tnunct'ilAlht QitiR itffatec System EmergeACy and Conservation Dian far this task. we will _ essit desk~n water use path fQr variQUS tarrd use tateg~es_~iraughout tEte Ct- y !rased nn fire updated land use plan. resign average day and ma>Arriurrt day ~ratet' demands wllt 6e establ'~ied. Maximum fare fiauv requirements will be reviewed Rased on insurance Services 4lffice and City rer;uiremen#s (provided by the gicltftetd Fire ilffidaill. For this tasks we antiapate brat file Crty~r~{ provide papu~tierrprojectaons. summarize water use (average and rrraximrlm dayusefor each ser+rice area?. Providewaterft[linq summaries water use 6ytustommertype and tap 7 ~ useis}. P~tvide a copy of tide latest ice' Repnrtr provide tacati ~ afd~igh wfire~ tfaws~ artd higfr fire fbw requirements, and t~roy3de utput iron! fife Fire Department reg 9 ~.. ~rt}r staff will give uu;; i5 shapelifes existing devefaped and vacant parcet5,~ existing zonir-g, and future .. . and use. Bonestrod~t~~s~~a~ta~ developable aces t-y land use type far each of fire junction lodes created forthe computer model _ We wiU aisn prepare an hourly demand variat€on curve specific to ~Ricirfield. This curve shows how the water . demand cartes by time an a peak day: An acarrate representation of this curve enables us to fine time supply and storage requirements.l'apreparethiscurve, we will utilize howly records from the SCAt)A system on the peak demand day Because fire result of this task affects the rernamder of the study we will meet with the Gty to reulew the . • -projected water c#emands and €ire ftnw regturements. ~. ~P~- `~ Task 3: fiydrautic i~lode!'rig The Richftetd Water System wilt be r-wdeied using WaterCAf7 software. WaterCAi,! is a powerbsl anafyEitat both tha#opera#es in a to#aity integra#ed Au#oC,4i} and GES envaonmeot. The campu#er m~fet and results can be vlewe~f wins G[y Base maps, land use t~naps. or integra#ed ipta a Cityr G3S system fay simulating . aperatiors of the wa#et system, the mmputer niodet: +~ Reveat~ system prd6lems, +~ Predicts rise effects of alternative solutions, and ~ Predicts the effects of system expansions. Tesk3a- Comte tPluArel offxis#ng3ys7erii Ulte will prepare a hydrau~C model of me existing watersystem_ The model will inctude_ab 8 inch :and largerplpes, ~t€l sufl'>Eierit 6 incb pipes tb.reasonably repressor the operation of the system WatQr demands are added to ~,e mpdef at jurictfon "nodes." We wilt caiilira#e the rtsodef to astral field hydrant #low tests: Bonestf+ao tirfll pravlde~ remmrnended_testing-prog~t €or hydrant how tests, and vriD provide one person foc one day to assist City staff in performing hydranttiaw tests. VG-e . will-tken_perform-cori~pu#~inadei-runstdvedfjrtfrat#ftemoda~reasona6l~represeatstireacts~fietdtests Tas,~.~li-Er~t?rrgS, yr~'emA-tal~is"The model vuill then be used td evaTrtate the performance of the existing water system under sssaxirrsum clay. peak basic, tank gibing, and fire tiawr scenarios Task3t-Frrlure S~ein~4rral,~' €3ensands and pipes will be added tai the mode! to serve deveioprneritiredeveldpiner~ areas fie nwde! will. be trsesR #tt evalua#e the foilriwing isiries: . / Address anydeficfericiesfound irstheanalysis o€theexisting systean. f i)etecrnine watestnaas is~spriQVesnents required to serve devefopmerit~redetselopmen# areas. ~ }:va~sate trrinE watermaia in ne~f3f replaeir-gdueta age orotheriactors. ~' ivalua#e methods €or obtausing water irons Mfnrseapolfs in the went of an s2.mergency. / Evaluate faaTdies r+equireri to provide ~rvice to poteniiat cusbotners outside of fticltfidd dry linsits. Task ~ Capi#at impcavemertt Plan R water utiitty . hairs a ss~usti hails for pfamsing for water systersi improv~rser~s This is espesdatiy trua now, yids increasing regu~tiorss regarding property acs~rfsition, public no#itica#mn and sxlnstrus~on A . . sound Capf#a! lmprgvement Alan (CiP} vrill enable ftidsfield to have the requfrad faa'#itiet in-place by the #ime they areneeded The C[P w3{! lie prepared fcsr the tnmk water system, l'lse QP wil! 6e in one-year itmcrements through 2Q30, fn fiver fnaetnents through 243tf, and wi(! consider remaining improvements tt) he past ZQ3f}. Tfse GP wr~i be based nn the lx?st avas~able prajectlsms from the C~tyfor population, fond use. and water use. Additionally, the GP w1l1 be !inked tQ benchmark events #o allow RfcMiefd to update the ClF easily. For example, distribution system improvements wiN be to fu#srre development dr #a coinsdde with street ri~nslrtrsdion projects. Task 5: fconamlcAnatysis The operation of a vaster uhTity must havQ a sound t`inancial basis Ffarx»ng.{~ cost estimates for all of the proposed think vaster stem ias~sties will be prepared and press=nted in the report. Based on the ~~ ~5 overall tQSt of the u;timata trunk water system we u~il{ review the Clty`s existing cFiarge system and mafce retammetidationtor adjteytmerr#~• . ;ask.f: Repartand Pres~tat{an 'ihe Bonestrao report will include graphics and figures to clarify items d'~cussed in the report. The ~lrifarmattion in the repori: wii{ 6e organized far ease of access by various audiences. A dear, canc{se 6cecutive Samtnat~ section ~~ assist the Gty ~nuna'I and staf€ to ~vfevv this document' Technical information will generally be placed in an appendix TE~~ wark insists a# fire foi{owing subtasks: graft-Report for 5tal~r Review:-Far several of the major tasks described above, technical :memoranda will be preparet# and submitted t4 Ftichffeid far review. Because the resutt~ of one task can afFect others, tedititcal mernaranda-an each task wit be prepared as the task i5 carapieted. IiPater~Emergency &{onserua~n P-iar~-Gty sta#-fras.camgfeted t~e.m~a~it~[of iftts docummertt atready. BanesErao w3i! provide input on tEie fallowing sections of the reparu adequacy of the water systtem sw~tainabitity of the agtf~fer, and the Gt:'.1Ne wilt provide ttt€s infarmaticut to itichfield, far inclusion in their report. Meetintls: iEVe vErill atterrd the fr~lowing meetings with City staff: Progres+ idieerirrg i RevielN caiibratlDn runs, e5f3onSEt urs-yn i,ut,~.~~..~.. pratec~n':, fire flaw requirement. and ultimate water ~ draft report f©r the entae study, including ail applicable reaps, fi9w'es, and apAend{tes will 5e compiled and presented to dry staff far review (at Progress Meetln~ 4j. Flnaf RegorC Fallowing revievu by Giy staff, a final report will be prepared and 1 ~ copies submitted to ~icirfeltL B, Suppjemi;nt~i S~r~ces if authorr~ed by the Gty ¢i RIchf'ieid, the Engineer wiq provide the fo8owing services: g ~ i+~1ch~9 revEsiarts in drawings, spedi'xations or ether documents when such revisions are: 1 1.1 Requested [sy #fie Cey of Rtct~fieid and are incorsisteY vial approval or itlSL^r~iLf~.15 previoesty ' given by ttte Gtftof itichieidi . j, `T • t t ~ Required i}y ifie enactmet~ ar revisiaas ofi cedes, Saws ar regviatlons sv6sequer~ to the preparation of such docvtrisrds; t t 3 ave to any other eaeeses feyand the Engineer's control 1.2 Provid'utg hyElydgeo~gtrsQnrices not otherwise tndvded in the Basic 5ervtces ~'E,3. PwvfdSng:addidanaf hydraulic modeling ar hyc~aant itaw #estang net otherwise indvded in the Basic Senfces f.h. Preparation of applications far funding assistance q~. Assi5tin9 die Qty ofi Erchfiield er tits re~eser-Ea'dve in ronrrection with mediation, arStitration, Rdgatian or ~ other proceedings Snvatvhsg the: Project. incltufiing prepariml ~ Y and testifying as an expert witness t .6. Prouldir~g any other service net otherwise inclvd~ in Basic Ser+tites or not customarily famished in . acmrdance+~lth gerreralty accepted engineer'mg practice AGENDA SECTION: AGENDA ITEM # REPORT # ~~S STAFF REPORT CITY COUNCIL MEETING MAY 26, 2009 PUBLIC HEARING 6 104 REPORT PREPARED BY: JIM TOPITZHOFER, ,RECREATION SERVICES DIRECTOR NAME, TITLE DEPARTMENT DIlZECTOR REVIEW: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Public hearing and second reading regarding the transitory ordinance authorizing the upgrade or replacement of HVAC, li htin and refri eration equipment at the Richfield Ice Arena. I. RECOMMENDED ACTION: Conduct and close the public hearing and by motion: • Approve second reading of the attached transitory ordinance authorizing the upgrade or .replacement of HVAC, lighting and refrigeration equipment at the Richfield Ice Arena and • Approve a resolution authorizing summary publication of the transitory ordinance. / II. BACKGROUND The Recreation Services Staff has been working on an exciting new program that can lower energy costs of the ice arena and outdoor pool and use the cost savings to pay for future equipment replacement and upgrades. Brandon Klement, Facility Manager, has met with representatives of Harris Mechanical Service, Inc. over the past year to evaluate the current state of the Richfield Arena. They have concluded that much of the equipment is the original 38 year- old equipment and well beyond its life expectancy. On April 14, 2009, City Council approved an agreement with Harris Mechanical Service, Inc. to conduct an engineering study to evaluate the replacement of aging equipment with energy efficient equipment. The intent of the study is to provide the City with a proactive equipment replacement solution in a manner 0526'Ice Arena Mechanical Upgrades " such that the energy and operational savings associated with equipment replacement must be greater than or equal to the debt service payment required to fund the project. Harris will work within the guidelines of Minnesota legislation to provide written performance and energy savings guarantees. If Harris cannot present a cash neutral solution upon completion of the study, the. City has no further obligations to continue the project. III. BASIS OF RECOMMENDATION A. POLICY • Pursuant to Section 8.04 of the City Charter, the project will require approval of a transitory ordinance because the estimated design costs may exceed $75,000 and the estimated .construction cost may exceed $500,000. • With City Council approval, a public hearing and second reading of a transitory ordinance authorizing the upgrade or replacement of HVAC, lighting and refrigeration equipment at the Richfield Ice Arena will be scheduled for May 26, 2009. B. CRITICAL ISSUES • Much of the Ice Arena's mechanical equipment in Rink 1 is the _ original 38-year old equipment including boiler, HVAC, domestic water heater, snow melt pit, and refrigeration system. The boiler was oversized in anticipation of a community center expansion resulting in inefficiencies. C. FINANCIAL • Funding for the project is yet to be determined. Staff is evaluating several funding alternatives including the issuance of general obligation revenue bonds, capital lease financing, or other funding methods that do not require the levying of taxes to service any debt incurred. • -The cost of the technical study is $20,000.00 which will be funded from Ice Arena operations. If City Council decides to go forward with the project, the $20,000 cost of the technical study will be financed as part of the total cost of the project over atwenty-year period. D. LEGAL • Pursuant to Section 8.04 of the City Charter, the project will require approval of a transitory ordinance because the estimated project cost exceeds $500,000. • Pursuant to Section 8.05 of the City Charter, notice of the public hearing will be published twice in .the Sun Current fourteen days prior to the hearing. Publication dates will be May 14, 2009 and May 21, 2009. • The City Attorney has reviewed the procedure for this capital improvement and finds that it complies with the City Charter. E. ENVIlZONMENTAL CONSIDERATIONS • The project will potentially benefit and City and the environment with significant energy reductions of natural gas and electricity. IV. ALTERNATIVE RECOMMENDATION(S~ • None V. ATTACHMENTS • Proposed transitory ordinance. • Resolution. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None ~-l BILL NO. Transitory Ordinance No, AN ORDINANCE APPROVING A CAPITAL IMPROVEMENT PROJECT FOR THE UPGRADE AND REPLACEMENT OF HVAC, LIGHTING AND REFRIGERATION EQUIPMENT AT THE RICHFIELD ICE ARENA PURSUANT TO RICHFIELD CITY CHARTER SECTION 8A4 THE CITY OF RICHFIELD DOES ORDAIN: Section 1. Background; findings. 1.01. Section 8.04 of the Richfield City Charter requires that any. capital improvement on City-owned property that has an estimated cost exceeding $500,000.00 or expenditures for design or engineering costs exceeding $75,000.00 must be approved by ordinance after a public hearing. 1.02. It is proposed that the City Council approve a capital improvement project for the improvement of property located at 636 East 66th Street,.. the current site of the Richfield Ice Arena.. 1.03. The capital improvement project consists of the design, engineering and construction of the. upgrade and replacement of HVAC, lighting and refrigeration equipment at the Richfield Ice Arena. 1.04. A cost estimates for the project has not been finalized but the construction cost is expected to exceed $500,000 and designs costs are expected to exceed $75,000. 1.05. A public hearing was held on May 26, 2009 after due notice as required by Section 8.05 of the Richfield City Charter. 1.06: The Council finds and determines that it is in the best interests of the City and its inhabitants that the Ice Arena Equipment Project be approved. Sec. 2. Approval; effective date. 2.01. If approved by City Council, the Ice Arena Equipment Project may proceed according to the procedures required by law. 2.02. The purpose of this Ordinance is to comply with the requirements of Section 8.04 of the Richfield City Charter. This Ordinance shall not be construed to require that the City proceed with the Ice Arena Equipment Project nor does it vest any rights in the Ice Arena Equipment Project to any individual or entity. This Ordinance shall- not be construed to pre-approve any contracts for the. design or construction of the Ice Arena Equipment Project, and the City Council specifically reserves to itself the authority to approve any .such contracts. The City Council reserves the right to abandon the Ice Arena Equipment Project or to modify elements of the Ice Arena Equipment Project, if the Council deems abandonment or modification to be in the public interest. 2.03. This ordinance is effective 30 days following its publication. Adopted by the City of Richfield this 26th day of May, 2009. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk ~~ RESOLUTION NO. RESOLUTION APPROVING SUMMARY PUBLICATION OF A TRANSITORY ORDINANCE APPROVING A CAPITAL IMPROVEMENT PROJECT FOR THE UPGRADE AND REPLACEMENT OF HVAC, LIGHTING AND REFRIGERATION EQUIPMENT AT THE RICHFIELD .ICE ARENA, PURSUANT TO RICHFIELD CITY CHARTER SECTION 8.04 WHEREAS, the City has adapted the above referenced ordinance to the Richfield City Code; and WHEREAS, the verbatim text of the amendment is cumbersome, and the expense of publication of the complete text is not justified. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield that.the following summary is hereby approved for official publication: SUMMARY PUBLICATION BILL NO. 2009 - TRANSITORY ORDINANCE APPROVING A CAPITAL IMPROVEMENT PROJECT FOR THE UPGRADE AND REPLACEMENT OF HVAC, LIGHTING AND REFRIGERATION EQUIPMENT AT THE RICHFIELD ICE ARENA, PURSUANT TO RICHFIELD CITY CHARTER SECTION 8.04 This summary of the ordinance is published pursuant to Section 3.12 of the Richfield City Charter. The ordinance authorizes a capital improvement project consisting of the design, engineering of the upgrade and replacement of HVAC, lighting and refrigeration equipment at the Richfield. Ice Arena. The preliminary estimate for total construction cost is $1,000,000.00.. Copies of the ordinance are available for public inspection in the Recreation Services Department during nort'nal business hours or upon request by calling Recreation Services Director Jim Topitzhofer (612-861-9394). Adopted by the City Council of the City of Richfield; Minnesota this 26th day of May 2009. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk AGENDA SECTION: RESOLIITION AGENDA ITEM # 7 REPORT # 105 ~~ STAFF REPORT CITY COUNCIL MEETING MAY 26, 2009 REPORT PREPARED BY: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: CHRIS LINK, STREET SUPERVISOR ITEM FOR COUNCIL CONSIDERATION: Consideration of a resolution adopting the Dutch Elm Diseased (DED) boulevard tree removal policy. I. RECOMMENDED ACTION: By Motion: Approve resolution adopting the Dutch Elm Diseased (DED) boulevard tree removal policy II. BACKGROUND A Special Council Worksession was held on May 12, 2009 seeking Council guidance for a Dutch Elm Diseased (DED) Tree Removal Policy for both boulevard and private elm trees. Key issues to be answered in the policy were time limits for removal, cut-off dates for summer removal, removals to be completed by City staff or a contractor, and funding. City staff has drafted the attached policy identified in the resolution in response to the City Council discussion in the Worksession. Time Limits Early detection and removal of trees containing DED can help prevent other trees from becoming infected. Early removal prevents the elm bark beetle from maturing and finding other susceptible trees. The draft policy states that trees that have been marked for removal before July 15 must be removed within 30 days. Summer cut-off date After a certain date the Dutch Elm Bark Beetle can no longer harm elm trees. The life cycle of the beetle has expired and no new hatches are anticipated. The draft 0526DEDremovalpolicy NAME, TITLE policy states July 15 as a date where infected trees would not have to be removed until April 15 of the following year. Removals to be Completed by City Crews or a Contractor Staff indicated that there'was no time in the early spring/summer months to remove infected trees., when it is most critical. Staff also stated that crews have not been able to trim new trees that have been recently planted due to the number of DED trees needing to be removed. Without proper trimming trees become unsightly and may become hazardous. Also trimming gives crews the chance to inspect trees and possibly detect other invasive insects such as Emerald Ash Borer. The draft policy states that in order to remain consistent with the new policy, contractors must be used for tree removal. New Level of Service Removal of diseased trees in the. late spring/early summer is a significantly new level of service that the City has not been in a position to provide in the past. Now, with fewer personnel, drastically reduced local government aids and levy limits, this service will require outside personnel and an additional source of funding. Funding If contractors are to be used for removal of boulevard trees a funding source, other than the General Fund, can be established. Franchise fees have been used in the past and the draft policy indicates that franchise fees can be used to fund removals. With respect to franchise fees, a threshold question to be addressed is whether the City adopts an increase in franchise fees and limits tree removal to the amount of fees generated or do all the tree removals necessary and then raise fees in an amount sufficient to pay for all removals. III. BASIS OF RECOMMENDATION A. POLICY • City Council forestry policy direction will guide staff in making operation changes. • .Adopting this policy will provide a greater and new level of service with respect to the City's forestry program. B. CRITICAL ISSUES • DED infected trees will be removed in a timely manner preventing the disease from spreading. • Contracting boulevard tree removals will enable staff to complete work in the summer months, resume trimming of trees, and complete stump removals in a timely manner. • Use of outside contractors will likely be a less costly method of removing diseased trees in the~City. • Providing this new level of service will immediately require a new source of funding. C. FINANCIAL • City staff is recommending contract tree removal be funded with franchise fees. An increase of $.23 (14%) in franchise fees will generate about $100,000 annually. • An increase of $.17 (10%) will generate about $73,000 annually. • The franchise fee rate should be adjusted as soon as possible to provide adequate cash flow to pay for contracted tree removal. • Adjusting franchise fees is a time consuming process and will take several months to implement. D. LEGAL • The City Attorney has reviewed the attached resolution and policy. • There are no legal issues known at this time that would affect implementation of this policy. E. ENVIRONMENTAL CONSIDERATIONS • .Diseased trees need to be removed to maintain a healthy and attractive environment. IV. ALTERNATIVE RECOMMENDATION(S~ • Council may direct staff to research other options of boulevard tree removals. • Council may delay consideration of this matter to a future meeting. V. ATTACHMENTS • Resolution • DED Boulevard Tree Removal Policy • Current franchise fee rate schedule VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None ~~1 RESOLUTION NO. RESOLUTION AUTHORIZING THE CITY OF RICHFIELD TO ADOPT THE FOLLOWING POLICY ON THE REMOVAL OF DUTCH ELM DISEASED (DED) BOULEVARD TREES. WHEREAS, The Minnesota Department of Agriculture and Minnesota Department of Natural Resources are the governing bodies for regulation of. Dutch Elm Disease prevention and eradication; and `WHEREAS, Minnesota State Statute Chapter 18 allows cities to set time lines for removal of diseased trees; and WHEREAS, Richfield City Ordinance Section 910 was recently changed to require diseased trees to be removed within 30 days, instead of 20 days, after being marked for removal by the City Forester; and _ WHEREAS, Richfield's Community Services Commission serves as the City's Shade Tree Commission as identified under the Tree City USA program and directed staff to implement a new removal policy. WHEREAS, The City of Richfield has a very active forestry program. Forestry activity includes trimming and planting of boulevard and park trees, identification and removal of diseased trees, -stump removal, and response to resident concerns regarding problems,with privately owned trees. NOW, THEREFORE, BE IT RESOLVED, that the Richfield City Council hereby adopts the attached policy for the removal of Dutch Elm Diseased (DED) boulevard trees. 2009. Adopted by the City Council of the City of Richfield, Minnesota this 26th day of May Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk 0526DEDremovalpolicy ~~ City of Richfield Dutch Elm Disease (DED)Tree Removal Policy 1. Introduction The City of Richfield believes it is in the best interest of the residents for the City to assume the basic responsibility for removal of Dutch Elm Disease (DED) trees. The City will provide this service in a safe and .cost effective manner, keeping in mind safety, budget, personnel and environmental concerns. The City will use City employees, and /or private contractors to provide this service. 2. Determination of Dutch Elm Disease The City of Richfield Tree Inspector will determine trees that. are infected by DED. A tree inspector must carry a tree inspector's license, which is distributed by the Minnesota Department of Natural .Resources. To become a Licensed tree inspector one must pass a test showing proficiency in DED management, firewood identification, and shade tree management, and attend annual recertification workshops. 3. Marking DED Trees After a tree is determined to be infected with DED the City's Tree Inspector will mark the tree for removal. The Tree Inspector will mark a boulevard tree with an orange dot and a tag with specific number. For private trees, the Tree Inspector will mark the tree with an orange stripe around the circumference of the tree and a numbered tag. All marks will be placed at breast height. 4. Time Limits for Removal Trees that have been marked for removal before July 15t" of a given year must be removed within 30 days. This time limit will help prevent the spread of DED to healthy trees. Trees that have been marked after July 15t" of a given year must be removed before April 15t" of the following year. After July 15th the Elm Bark Beetle that causes DED is no longer active and will no longer spread for that season. 5. Removals to be Completed by a Contractor Generally, a contractor will remove all trees that are. infected with DED. Private trees that are to be removed are the responsibility of the homeowner. If the tree is not. removed within the specified time limit a contractor will remove the tree and the cost will be assessed against the property. 6. Funding Franchise Fees will be used to fund boulevard DED removals. Franchise Fees may be adjusted annually to account for the summer.removals and anticipated winter removals. ~r Current Utility Franchise Fee Rates Cen#erPoint Energy Estimated Current Estimated Estimated # Meters Monthly Rate $Per Mo # Months Total $ Resid. 10,500.00 1.65 17,325.00 12.00 207,900.00 .Com A 192.00. 1.65 316.80 12.00 3,801.60 Com B 200.00 5.10 1,020.00 12.00 12,240.00 Com C 302.00 11.33 3,421.66 12.00 41,059.92 SVDF A 33.00 11.33 373.89 12.00.. 4,486.68 SVDF B 7.00 11.33 79.31 12.00 951.72 22,536.66 270,439.92 Xcel Energy Estimated # of Customer Current Estimated Estimated Accounts Monthly Rate $Per Mo # Months Total $ Residential 15,615.00 1.65 25,764.75 12.00 309,177.00 Sm C&I Non Dem 884.00 5.10 4,508.40 92.00 54,100.80 Sm C&I Demand 304.00 11.33 3,444.32 12.00 41,331.84 Large C&I 63.00 73.65 4,639.95 12.00 55,679.40 .38,357.42 460,289.04 AGENDA SECTION: pTRRR RIISTNRS.ri AGENDA ITEM # g REPORT # 106 ~~ STAFF REPORT CITY COUNCIL MEETING MAY 26, 2009 REPORT PREPARED BY: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY C MANAGER: CHRIS LINK, STREET SUPERVISOR NAME, ITEM FOR COUNCIL CONSIDERATION: Consideration of award of contract to North Star Tree Care for removal of diseased boulevard trees for an amount not to exceed $99,000. I. RECOMMENDED ACTION: By Motion: Award a contract to North Star Tree Care for diseased boulevard tree removal for an amount not to exceed $99,000. II. BACKGROUND At the May 12, 2009 Special Council Worksession, the City Council discussed Diseased Tree Removal Policy options. One of the options discussed was the removal of Dutch Elm Diseased (DED) trees in the summer using a contractor funded by Franchise Fee revenues. By shifting the tree removal function from City staff to a contractor, staffing levels and General Fund expenditures can be reduced and staff's summer workload can be better managed. Staff believes if a contractor is hired to remove the DED boulevard trees, it will help prevent the disease from spreading and also allow City staff sufficient time for tree planting and resume the City's tree trimming and maintenance program. City crews have removed 340 boulevard trees having Dutch Elm Disease (DED) from January 2008 to February 2009 leaving 100 DED trees. On February 10, 2009, City Council approved a contract to Shadywood Tree Experts to remove the remaining 100 trees. There are now less than 750 boulevard elm trees remaining in 052609DEDremovalcontract the City. Staff has received over 250 requests for new trees to be planted this spring. The recommended contract award is based on an estimate of 80 trees of assorted sizes using the quotes received from North Star Tree Care ($55,900) and Shadywood Tree Experts ($94,692). The actual number and sizes will depend on the number and sizes of DED trees that will be tagged for removal by the City tree inspector. Staff recommends that the contract be awarded for an amount not to exceed $99,000 (the actual amount dependent on the number and sizes of trees removed). The quote tabulation sheet is attached. III. BASIS OF RECOMMENDATION A. POLICY • Since the estimated cost of the work was less than $1.00,000.00, the formal bidding process was not required and the City can contract by obtaining quotations. • North Star Tree Care submitted the lowest quotation. B. CRITICAL ISSUES • Approval at the May 26, 2009, Council meeting will expedite the removal process. • Hiring a contractor for tree removal will ensure residents receive their requested new boulevard trees. • Hiring a contractor for tree removal allow crews to resume the tree trimming and maintenance program. C. FINANCIAL • -City staff is recommending franchise fees be used to fund this project. An increase of $.23 (14%) per homeowner will increase franchise fee annual revenue by roughly $100,000.00.. • Alternative funding sources are as follows: o Boulevard tree service fee o Shared cost with the property owner o General Fund (potentially available by other service cuts or tax levy if within levy limit) D. LEGAL • When the purchase of materials, merchandise, equipment or construction exceeds $25,000, authority to purchase shall be submitted to the City Council for consideration. E. ENVIRONMENTAL CONSIDERATIONS • Diseased trees need to be removed to keep the environment healthy and attractive. IV. ALTERNATIVE RECOMMENDATIONS} • The City Council could wait to solicit hopefully lower quotations for winter work. However, the DED trees would be left to stand all summer. • The City Council could decide to use one of the alternative funding sources suggested above. • The City Council may choose to reject all quotations and direct staff to obtain more quotations; however, staff does not believe we can obtain a better price from a reputable contractor. V. ATTACHMENTS • Quotation tabulation VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None J ~ ~ ~ ~ V ~/ i I"' 0 ~ ~ ~ , V ~ 0 Q ~ y V m ~'- r 0 a ~ o o ~ ~; O 3 ~ ~ ca ~ W U O a~ V ~ ~ i ~ ~ ~ ~ O . ~ ~ ~ O ~ Z ~ X `~ 0 U C N C O f6 C O O ~' Q U (Q L -N U tt7 O N L W N O