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09-10-01 Agenda
CITY OF RICHFIELD, MINNESOTA MONDAY, SEPTEMBER 10, 2001 SPECIAL CITY COUNCIL WORKSESSION : ;COUNCIL CHAMBERS - 5:30 P.M. AGENDA Call to order Roll call I. Discussion of special assessments #or maintenance services - II. Discussion of status of Richfield outdoor swimming pool renovation project Adjournment REGULAR CITY COUNCIL MEETING COUNCIL CHAMBERS 7 P.M. AGENDA INTRODUCTORY PROCEEDINGS • Call to order Roll call Open Forum (7-7:'15 p.m.) 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 register prior to the meeting. Notes: Adjournment Call to order Roll call • Pledge of Allegiance Approval of minutes of (1) Special City Council Meeting of August 13, 2001; (2) Regular City Council Meeting of August 13, 2001; (3) Special Concurrent City Council and Civil • Services Commission Meeting of August 15, 2001; (4) Special City.Council Meeting of August 16, 2001; (5) Special City Council Meeting of August 20, 2001; and (6) Special - Concurrent-.City Council and HRA Meeting of August 23, 2001 PRESENTATIONS 1. Presentation of Friendship City certificates of recognition to Costa Rica delegation 2. Presentation of proclamation designating week of September 9, 2001 as Heredia Week and September '15, 2001 as Costa Rican Day-in Richfield 3. Annual meeting with Friendship City Commission - 4. Discussion with Richfield Community Human Services Planning Council 5. Presentation of Government Finance Officers Association Certificate of Recognition for Budget Preparation COUNCIL DISCUSSION Notes: AGENDA APPROVAL 6. Council approval of agenda CONSENT CALENDAR 7. Consent Calendar contains several separate items which are acted upon by the City Council in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further Council action is necessary. However, any Council Member may request that an item be removed from the Consent Calendar and placed on the regular agenda for Council discussion and action. All items listed on the Consent Calendar are recommended for approval. A. Consideration of approval of designation of Mayor Martin Kirsch as City of Richfield official voting delegate and Mayor Pro Tempore Suzanne Sandahl as alternate for National League of Cities annual. Congress of Cities business meeting on December 8, 2001 in Atlanta, GA S.R. No. 222 • B. Consideration of approval of agreement identifying uses for tax increment financing in Interchange West area S.R. No. 223 C. Consideration of approval of resolution amending 2001-2002 labor contract designating increase in City's contribution toward health insurance premiums fore • International Union of Operating Engineers, Local 49 S. R. No. 224 D. Consideration of approval of bid minutes/tabulation and award of contract to Carl - ~ Bolander & Sons Co. for demolition and site clearing of properties at 7620. Penn Avenue, Century Court gym, and 7744 Penn Avenue, Citgo Service Station, in amount of $254,320 S.R. No. 225 E. Consideration of approval of purchase from Lakeshore Equipment for boardwalk ramps at Wood Lake Nature Center in amount of $30,093.70 S.R. No~ 226 F. Consideration of approval of condemnation commissioners' award for Morrow Towing property,-6429.Cedar-Avenue, in amount-of-$350.:;00.0.:,S:R.:No,227 G. Consideration of approval;of resolution authorizing Richfield's continued participation for 2002 in Local Housing Incentives Account Program under Metropolitan Council's Livable Communities Act S.R. No. 228 H. Consideration of approval of resolution authorizing execution of stipulation of final settlement for 6325 Cedar Avenue, Parcel4; 66th Street/Trunk Highway 77 Interchange Project S.R. No. 229 I. Consideration of approVal`of commercial kennel license renewal for- Petco Animal Supplies, Inc., 710 West 66th Street S.R. No. 230 J. Consideration of approval of itinerant place of amusement license for Evilhill Productions for Dungeons of Darkness and Doom theatrical haunted house at HUB Shopping Center, 6 West 66th Street, on October 12-31,2001 S.R. No. 231 Notes: OTHER BUSINESS 8. Consideration of confirmation of appointment of Kevin McGinty as Fire Services Director for City of Richfield Staff Report No. 232 Notes: 9. Consideration of residential kennel license renewal for 7412 Colfax Avenue, four dogs • Staff Report No. 233 Notes: • RESOLUTIONS 10. Disciplinary hearing and consideration of resolution regarding civil enforcement-for alcohol establishments in Richfield that recently underwent alcohol compliance checks conducted by Richfield Public Safety staff and failed by selling alcohol to underage youth -Staff Report No. 234. .: Notes: 11. Consideration of resolution authorizing Cooperative Construction Agreement #82204 which allows MnDOT to reimburse.City of Richfield for its Transportation Revolving'Loan_ funds,: provides. $147,000 in trunk highway money,. and provides construction engineering ervices for construction of Penn Avenue bridge over I-494 project Staff Report No. 235 Notes: 12. Consideration of Transportation Revolving, Loan Fund loan agreement between. Minnesota Public Facilities Authority and City of Richfield for partial financing of Penn Avenue bridge project and adoption of general obligation bond resolution Staff Report No. 236 Notes: 13. Consideration of 2001 Revised/2002 Proposed budget resolutions adopting proposed budget and establishing 2002 preliminary tax levy, authorizing budget revisions, authorizing revision of 2001. budget of various departments and authorizing use of Public Employees Retirement Association Police and Fire Fund refund interest earnings for police and-fire expenditures • Staff Report No. 237 Notes: ___ OTHER BUSINESS • 14. Consideration of residential acquisition strategy for airport mitigative purposes using $10 million in federal funds Staff Report No. 238 Notes: Notes: CITY MANAGER'S REPORT 15. Claims and payrolls Open Forum (additional 15 minutes, if necessary) 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 register prior to the meeting. Notes: 16.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. • .7 STAFF REPORT OTHER BUSINESS 14 238 AGENDA SECTION: AGENDA ITEM # REPORT # CITY COUNCIL MEETING SEPTEMBER 10, 2001 REPORT PREPARED BY: PAM DMYTRENKO, ASSISTANT TO THE CITY MANAGER NAME, TITLE REPORT PRESENTER: PAM DMYTRENKO, ASSISTANT TO THE CITY MANAGER NAME, TITLE DEPARTMENT DIRECTOR REVIEW: SIGNATURE • REVIEWED BY CITY MANAGER: ITEM- FOR COUNCIL CONSIDERATION: Consideration of residential acquisition strategy for airport mitigation purposes using $10 million in federal funds. The strategy prioritizes the acquisition of the homes on the 6600 and 6700 blocks of 18t" Avenue and then, as funding remains available, the acquisition of the apartments on Cedar Avenue, north of 66th Street. I. RECOMMENDED ACTION: By Motion: Approve the acquisition strategy of residential property in the airport mitigative area, using $10 million in federal funds secured by Congressman Sabo. The strategy calls for the acquisition of the 22 single family homes on the 6600 and 6700 blocks of 18t" Avenue and then, with remaining funds, the acquisition of the apartment buildings on Cedar Avenue, north of 66t" Street. II. BACKGROUND In October 2000, Congressman Martin Sabo successfully earmarked $10 million in ,the 2401 Federal Transportation Appropriations Bill for airport mitigation projects in Richfield. Since that time, City staff and the staff of the Metropolitan Airports Commission (MAC) have worked collaboratively on a strategy to use those funds in away that complies with the federal guidelines and restrictions that accompany the funds. The restrictions prevent the acquisition of homes which have already been 0910airport insulated for noise under the Part 150 Sound Insulation Program and only allow funds to be used within the 1996 - 65 DNL noise contour. Because of those • restrictions, the City of Richfield is unable to use this source of funds to continue the purchase of single family homes on 18t" Avenue, north of 66t" Street, since all of those homes have been insulated under the Part 150 Program. The City is also not able to use the funds specifically to address low frequency noise impacts because the FAA still does not formally recognize low frequency noise nor does it have national standards to address its impact. However, the seven apartment buildings on Cedar Avenue, north of 66t" Street have not received sound insulation and are within the 1996 - 65 DNL, thereby qualifying them for acquisition with these federal funds. Furthermore, the apartments are only 1200 feet from the new North/South Runway and are, quite frankly, in a "no man's land," being surrounded by empty properties already acquired for either noise mitigation or the 66t" bridge expansion purposes. The purpose of acquiring the 22 homes on the 6600 and 6700 blocks of 18t" Avenue is two-fold. As part of-the 66t" Street bridge expansion, Cedar Avenue will be permanently closed just before 66t" Street at the Richfield Liquor Store to accommodate the construction of new off ramps. Plans call for traffic traveling north on Cedar Avenue to be diverted onto 18t" Avenue, at 67t" Street, via a new through- road.. Because of the City's concerns of the traffic impacts on the residents on the 6600 and 6700 blocks of 18t" Avenue, the acquisition of those homes has become a priority. The homes also fall within the 87 dB low frequency sound contour and are expected to experience some of the worst impacts from the operation of the new . North/South runway. Although the homes are outside the 65 DNL, the strategy developed in conjunction with the MAC allows Richfield to use the funds for airport mitigation purposes. In this case, to primarily address traffic impacts caused by the construction of the new off ramps, and, secondarily, to mitigate noise impacts that will be generated from the new runway. After significant planning and discussion amongst the City, MAC and the FAA to develop a strategy that meets all of the entities' needs, restrictions and guidelines, the FAA has given its necessary approval and is in the process of writing a grant to the MAC in the amount of $10 million. The grant requires the MAC to spend up to $10 million in Richfield on airport mitigation projects. The MAC's Planning and Environment Committee approved the grant award at its September 4 meeting and the full commission will have it before them on September 20. It is anticipated that the funds will be available to begin the acquisition process yet this year. III. BASIS OF RECOMMENDATION A. POLICY • The recommended acquisition strategy is most closely aligned with the policies and priorities the City Council adopted relative to residential acquisition in the airport mitigative area. It continues • acquisition within the 87 dB low frequency sound contour in a north to south manner as funds are available and prioritizes the acquisition of single family homes. It also acquires property in a way that allows for eventual redevelopment of the area to more airport compatible. uses. The strategy continues the City's priority of relocating as many residents as possible out of the airport noise impact area before the . North/South Runway becomes operational in December 2003. • The strategy for use of the funds has received the necessary, formal approval from the FAA and the MAC, as well as from Congressman Sabo, and complies with all pertinent guidelines and restrictions. Without the FAA's approval, the funding will not be available. B. CRITICAL ISSUES • Despite the City's intention to continue to pursue noise mitigation #unding, `this $10°million in #ederal funds-could be the°only money Richfield receives from federal, and even State sources. It is imperative that the City use these funds efficiently and effectively and in a way that complies with federal criteria so that we do not jeopardize the receipt of these funds. • The acquisition of the single family homes on the 6600 and 6700 blocks of 18t" Avenue protects the residents from two, airport-related impacts: traffic impacts that will result from a new through-road being constructed between Cedar Avenue and 18t" Avenue at 67t" Street to accommodate new off ramps for the 66t" Street bridge, and noise impacts anticipated from the new North/South Runway. • It has been the intent of the City to try to relocate as many families as possible out of the 87 dB low frequency sound contour before the • North/South Runway becomes operational in December 2003. It has also been the City's intent not to acquire property in a piecemeal fashion so that future redevelopment of the area to more airport compatible uses is possible when a large enough parcel of land,is assembled. • The only other section in the 87 dB low frequency sound contour that could be acquired using these federal funds are the- residential properties on the 7100 block of Cedar Avenue and on the east side of the 7100 block of 18t" Avenue. These homes have not received Part 150 sound insulation and are also within the 1996 65 DNL contour. There are approximately ten multi-family buildings and thirteen single family homes in this section. However, this action is not aligned with the Council's desire to acquire in a north to south manner and to assemble a large .enough parcel of land to redevelop. • All of the property owners impacted by this potential buyout in the recommended area have been notified through written communication of this possibility and are awaiting the Council's decision. C. FINANCIAL There is no direct financial impact to the City to implement the acquisition plan since the funds for the acquisition and relocation are. being provided by the federal government, via the MAC. • • The $10 million might be the only funds the City receives to further its noise mitigation efforts in the airport impact area. There are no guarantees that the City will be successful in securing additional funds. • D. LEGAL , • City attorneys are currently working on the legal details to assure City ownership and control of the acquired land. IV. ALTERNATIVE RECOMMENDATION~S~ • Recommend a different residential acquisition strategy for the use of the $10 million. However, the strategy must comply with the restrictions for the use of these funds. The strategy should also closely mirror the Council's acquisition priorities for the airport mitigative area. Those priorities call for a north to south acquisition process, with single family`homes a higher priority. than apartments. Because of the importance of planning for future redevelopment in the area and reestablishing a tax base, acquisition should be in a manner that allows for a large enough parcel of land to be assembled that can be redeveloped into more airport compatible uses. • Acquire the properties on the 7100 block of Cedar Avenue and on the east side of the 7100 block of 18th Avenue. These properties comply with federal guidelines because they have not received Part 150 sound insulation and are within the 1996 - 65 DNL contour. The 7100 block is also within the 87 dB low frequency noise contour where acquisition is recommended as part of City policy. However, this strategy does not allow for possible future redevelopment that would help mitigate airport impacts on the remaining homes in the area. A larger parcel of land is necessary to build the bigger • mass structures that can provide helpful sound absorption .and blockage. This acquisition option also does not follow the north to south strategy adopted by the Council for the 87 dB noise contour area. . • Do not approve an acquisition strategy. This would result in the loss of the $10 million in federal funds secured by Congressman Sabo, with no certainty of receiving future funding. V. ATTACHMENTS • The "Noise Impacts and Acquisition Strategy" Map highlights the properties proposed to be acquired, the homes already purchased with the $5 million in State funding and the noise contours for overflight noise and low frequency noise in the airport mitigative area. • The "Land Use in Mitigative Area Map" shows the land uses of the sections in the airport mitigative area that qualify for acquisition using the federal funds. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None. • Noise Impacts and Acquisition Strategy Z 0 z z m z ~ ~ Q ~ ~ o! O L L L L L O L L L L 63rd O n. Q O Q O= a U U w r .+ ~ ~ ~ ~ ~ ~ m ~ ~ °r W U ~~'~ 1~ q~B ~~~~~ ~k~~ ~~ -. ~- a '~' ~'+ } , ~ F~,~, j~}'r~„` ~1~„~~, ~~ ~ ~~ Q Y ~ O I- L w L L L L Z L L L 0_ Z Z~ ] C9 O s ~- N M v~ O co n ao Q Q 0] V J ~- r r ~- r r ~ r ~- '- O ~ Q a ~ = W Z U a U O U O U U J m I / pis / ed / stall / WII I project / rtdgn_Inalbdya new.apr 62nd RICHFIELD ENGINEERING 8-2001 64th 65th 66th 67th 1 1 N W B LEGEND s >-:~ 87db zone ~ 78db zone ~ 7Odb zone Homes Purchased w/ $5M ~ Properties to be Acquired. w/ $1OM in AIP Funds ~ Properties to be Acquired ~' by MAC ~ Soundproofed Homes 0 Z 0 O J m Land Use in Mitigative Area Q ~ ~ ~ ~ ~ ~ ~ w `~ ~ LEGEND 1i='! C ~,6~ ~ ;3 rt ~ 3p lu ~s't ~~ ~J ~_ r~ 1996 ~~ I ~,~-I ~ ~ ~~ i I gis / cd /staff / Julie /project / sabomoney.apr 87db zone Homes Purchased w/ $5M 0 Properties to consider for acquisition w/ $10 M Land Use Commercial -- j'~,; :Multiple Family ~- Duplex ', Residential E ; ~~, School ~, _;;_>~~' Quasi-Public ', Church Park ~-~ i '~~ Vacant .~ ..:. I' N W E s ~' RICHFIELD COMMUNITY DEVEL 9-2001 63rd 64th 65th 66th 67th 8th 69th 70th' 71st 72nd 62nd ~- - .7 AGENDA SECTION: AGENDA ITEM # REPORT # J STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 10, 2001 Other Business REPORT PREPARED BY: CHRIS REGIS, FINANCE MANAGER NAME, TITLE REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: U ITEM FOR COUNCIL CONSIDERATION: Consideration of 2001 Revised12002 Proposed Budget resolutions adopting 2002 preliminary property tax levy, authorizing budget revisions, authorizing revision of 2001 budget of various departments, and authorizing use of Public Employees Retirement Association Police and Fire Fund refund interest earninas for police and fire expenditures. RECOMMENDED ACTION: By motion: adopt the attached resolutions establishing the 2002 preliminary property tax levy, authorizing budget revisions, authorizing revision of 2001 budget of various departments, and authorizing the use of Public Employees Retirement Association Police and Fire Fund refund. interest earnings for Police and Fire exaenditures. • II. BACKGROUND Before the City Council takes action on these issues, a presentation and discussion of the 2001 Revised/2002 Proposed budget and 2002 preliminary property tax levy occurs at a Special City Council meeting. To that end, a Special City Council meeting was held, pursuant to the City Charter, for this purpose. City. staff presented the budget and proposed tax levy. to the City Council in a discussion 0910budgetres STEVEN L. DEVICH, ADMINISTRATIVE format. This was similar to the budget presentation format that has been used in the past. . • III. BASIS OF RECOMMENDATION A. POLICY • The City Charter establishes the first Tuesday in September as the -last day for City staff to present a 2001 Revised/2002 Proposed budget to the City Council. While the Truth in Taxation Statute has overridden the Charter process for budget adoption, City staff still follows the Charter provisions, which are not in conflict with the Truth in Taxation statute. • As required by the Truth in Taxation legislation. (MS 275.065) each "taxing authority" must certify its proposed property tax levy for payable year 2001 to the County Auditor on or before September 15, 2001. "Taxing authority" includes all counties, all school districts, all cities regardless of population, all towns and all special taxing districts. No local units of government are exempted from this requirement. B. CRITICAL ISSUES • All official action concerning the preliminary tax levy must be concluded before September 15, 2001. • C. FINANCIAL • A final resolution for consideration authorizes the revision of the 2001 budget to conform with the most recent 2001 revenue and expenditure projections. D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION(S~ • The City Council could adopt either a greater or lesser 2002 preliminary property tax levy, or 2001 Revised/2002 Proposed budget. V. ATTACHMENTS • Resolution Adopting a Proposed Budget and Tax Levy for the Year 2002 • Resolution Authorizing Budget Revisions • Resolution Authorizing Revision of 2001 Budget of Various Departments • Resolution Authorizing Use of Public Employees Retirement Association. Police and Fire Fund Refund Interest Earnings for Police and Fire Expenditures for 2001 Revised and 2002 Proposed Budget • VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A U RESOLUTION NO. RESOLUTION ADOPTING A PROPOSED BUDGET AND TAX LEVY FOR THE YEAR 2002 WHEREAS, the Minnesota Truth in Taxation law provides for a proposed tax levy to be certified to the County Auditor by September 15, 2001 and then recertified before December 31, 2001. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows: 1. The budget for the City of Richfield for the year 2002 is hereby approved and adopted with appropriations for each of the departments to be as follows: General Fund I~~1 U Leg islative/Executive Administrative Services Public Safety Fire Services Community Development Public Works Recreation Services Transfers TOTAL GENERAL FUND $ 763,780 1,087,630 7,220,920 2, 398, 300 284,990 3,386,460 1,582,410 15.000 $16,739,490 2. The estimated gross revenue of the City of Richfield from all sources, including general ad valorem tax levies as hereinafter. set forth for the year 2002 which are more fully detailed in the City Manager's official copy of the 2002 budget, are hereby found and determined to be as follows: TOTAL GENERAL FUND $16,739,490 3. There is hereby levied upon all taxable property in the City of Richfield a direct ad valorem tax in the year 2001, payable in 2002 for the following purposes and in the following amounts: PURPOSE AMOUNT General Fund $9,404,5502 Debt Service 1,004,381 PERA 26,490. Provision has been made in the General Fund for the payment of the City's contributory share to Public Employees' Retirement Association. 2 General Fund Levy included all fiscal disparities distribution amounts. 4. The budget for the Housing and Redevelopment Authority of Richfield for the year 2001 is hereby ratified and approved. There is hereby levied upon all . taxable property in the City of Richfield a direct ad valorem tax in the year 2001, payable in 2002 for the following purposes: PURPOSE AMOUNT Housing and Redevelopment Authority $280,715 5. A certified copy of this resolution shall. be transmitted to the County Auditor. Adopted by the City Council of the City of Richfield, Minnesota this-10th day of September 2001. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk n U • RESOLUTION NO. RESOLUTION AUTHORIZING BUDGET REVISIONS • WHEREAS, the City Charter and Minnesota Statutes provide for a process for adopting an annual budget and tax levy; and WHEREAS, the City Charter provides certain authority for the City Manager and/or City Council to revise the annual budget; and WHEREAS, it would be beneficial to restate such authority with the adoption of the budget. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows: 1. The City Manager may increase the budget by City Council action provided that unbudgeted receipts will be available to equal or exceed the increased expenditures. 2. The City Manager may authorize. transfers between divisions within a department providing the transfers do not ,increase or decrease the department or total budget. 3. The City Manager may transfer budgeted amounts between departments only with the approval of the City Council • Adopted by the City Council of the City of Richfield, Minnesota this 10th day of September, 2001. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk • RESOLUTION NO. • RESOLUTION AUTHORIZING REVISION OF 2001 BUDGET OF VARIOUS DEPARTMENTS WHEREAS, Resolution No. 8977 appropriated funds for personal services, other expenses and capital outlays for each department of the City for the year of 2001; and WHEREAS, The City Charter, Chapter 7, Section 7.09, gives the Council authority to transfer unencumbered appropriation balances from one department to another within the same fund at the request of the City Manager; and WHEREAS, The City Manager has requested a revision of the 2001 budget appropriations in accordance with Charter provisions and as detailed in the Proposed 2002 budget document. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows: 1. That the 2001 appropriations for each department of the General Fund be amended to establish the following totals: General Fund Legislative/Executive . Administrative Services Community Development Public Safety Fire Services Public Works Recreation Services Transfers TOTAL GENERAL FUND INCREASE $ 773,820 1,080,030 278,720 6, 951, 800 2,262,440 3,265,500 1,516,600 567,480 16,696,390 $ 742,140 2. Estimated 2001 gross revenue of the City of Richfield from all sources, as the same are more fully detailed in the City Manager's official copy of the proposed 2002 budget, are hereby revised as follows: INCREASE $16,696,390 3. That the City Manager and the Finance Manager bring .into effect the provisions of this resolution. Adopted by the City Council of the City of Richfield, Minnesota this 10th day of September 2001. • Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk RESOLUTION NO. • RESOLUTION AUTHORIZING USE OF PUBLIC EMPLOYEES RETIREMENT ASSOCIATION POLICE AND FIRE FUND REFUND INTEREST EARNINGS FOR CERTAIN POLICE AND FIRE EXPENDITURES WHEREAS, the City of Richfield received a refund of overfunded residual assets from the closed Public Employees Retirement Association (PERA) Police and Fire Fund; and WHEREAS, the City adopted a plan where only interest earnings on the principal of the residual assets are to be used for eligible expenditures; and and WHEREAS, all eligible expenditures be restricted to Police and Fire expenditures; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows: 1. Proposed 2002 Revised Police/2001 Proposed and Fire Expenditures using PERA funds 2001 R 2002 Capital Improvement Budget 800 MHz Radio 15,000 Emergency Generator 160,000 General Fund Operatinct Expenditures Logis 13,000 Mounting Racks 2,240 Ammo AR-15 2,040 MP-5's 6,430 Firearms, Magazines, and Holders 950 Motor Vehicle 171,400 241,740 General Fund Capital Expenditures U.P.S. For Radio System 3,000 Firearms Range 7,770 Booking System Upgrade 5,000 Fire Station Office Improvements 20,000 381,830 266,740 Adopted by the City Council of the City of Richfield, Minnesota this 10th day of September 2001. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk • • AGENDA SECTION: Other Business AGENDA ITEM # 12 REPORT # ~ 2 H STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 10, 2001 REPORT PREPARED BY: TOM FOLEY, TRANSPORTATION ENGINEER REPORT PRESENTER: TOM FOLEY, TRANSPORTATION ENGINEER NAME, TITLE • DEPARTMENT DIRECTOR REVIEW: ~ ~~I ~/ ~ NATURE REVIEWED BY CITY MANAGER: /~ ITEM FOR COUNCIL CONSIDERATION: Consideration of the Transportation Revolving Loan Fund loan agreement between the Minnesota Public Facilities Authority and the City of Richfield for partial financing of the Penn Avenue bridge project and consideration of adoption of the general obligation bond resolution. I. RECOMMENDED ACTION: By Motion: Approve a Transportation Revolving Loan Fund loan agreement between the Minnesota Public Facilities Authority and the City of Richfield for partial financing of the Penn Avenue bridge project and adopt the attached General Obligation Improvement Bond resolution issuing and selling the bond (called a "Note") to the Authority. II. BACKGROUND The. Richfield City Council approved the submittal of a Transportation Revolving. Loan Fund (TREE) application for partial funding of the Penn Avenue Bridge project on March 12, 2001. The application was submitted to the Minnesota Public Facilities Authority (PEA) which has reviewed and approved a loan in the amount of $6.7 million. Council is asked to issue and sell General Obligation Improvement Bonds to the Minnesota. Public Finance Authority as security for the $6,700,000 loan. 0910-TR LF& Bo ndApproval As part of the financing plan for the Penn Avenue Bridge, the City will repay the principal of the loan using Minnesota Department of Transportation funds. The Minnesota Department of Transportation is proposing to use federal funds to repay the City#or the loan principal. These funds will become available in two installments. The first installment will be in 2005 for $4.7 million and the second in 2006 for $2.0 million. The City is responsible for paying the interest on the TRLF loan. The interest cost is based on the interest rate of the loan, which is 1.84%, and the time when the City requests loan reimbursements for actual costs incurred. It is estimated that interest on the loan may cost approximately $430,000 over three and one-half years. As of the writing of this report, City staff was uncertain of the need for an additional agreement for receiving federal funds. Status of this agreement will be discussed at the meeting. III. BASIS OF RECOMMENDATION A. POLICY • The City's 2001 Capital Improvement Budget includes the Replacement of the Penn Avenue Bridge over I-494 as a necessary public improvement: • B. CRITICAL ISSUES • The TRLF is essential to complete the financing of the Penn Avenue Bridge. The existing bridge is already inadequate and regularly causes serious traffic congestion during rush hours. • If Council approves the General Obligation Improvement Bond, the special assessments will have to be levied on or before October 22, 2001 for collection in 2002 and thereafter. C. FINANCIAL • The Minnesota Department of Transportation has agreed to repay the principal on the TRLF loan. • The City will use Penn Avenue Bridge project related funds to pay the interest on the loan. D. LEGAL • The City Attorney has reviewed all agreements and loan documents needed to obtain a TRLF loan. IV. ALTERNATNE RECOMMENDATION~S~ • • .Council may refuse to approve the TRLF loan agreement. Without this agreement the City would not be able to secure $6,700,000 in state funds needed to partially finance the Penn Avenue Bridge Project. This would seriously jeopardize attempts to build the Penn Avenue Bridge as soon as 2001 and delay reconstruction for ten years. • V. ATTACHMENTS • Resolution accepting the offer of the Minnesota Public Facilities Authority to purchase a $6,700,000 general obligation improvement note of 2001 providing for its issuance, and authorizing execution of a project loan agreement. • Public Facilities Authority Project Loan and General Obligation Bond Purchase Agreement, Transportation Revolving Loan Fund, Project #MPFA- 01-0083-R-FY02. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None anticipated. • • EXTRACT OF MINUTES OF A MEETING OF THE . CITY COUNCIL OF THE CITY OF RICHFIELD HENNEPIN COUNTY, MINNESOTA HELD: September 10, 2001 • Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Richfield, Hennepin County, Minnesota, was duly held in the City Hall in the City of Richfield, Minnesota on the 10th day of September, 2001, at 7:00 o'clock p.m., for the purpose in part of awarding the sale of a $6,700,OOd General Obligation Improvement Note of 2001 of the City. The following members were present: and the following were absent: Member RESOLUTION NO. RESOLUTION ACCEPTING THE OFFER OF THE MINNESOTA PUBLIC FACILITIES AUTHORITY TO PURCHASE A $6,700,000 GENERAL OBLIGATION IMPROVEMENT NOTE OF 2001 PROVIDING FOR ITS ISSUANCE, AND AUTHORIZING EXECUTION OF A PROJECT LOAN AGREEMENT introduced the following resolution and moved its adoption: WHEREAS, the City Council of the City of Richfield, Hennepin County, Minnesota (the "City"), has applied for a transportation revolving fund loan ("TREE Loan") from the Minnesota Public Facilities Authority (the "PEA") to provide financing for funding eligible project costs, specifically to replace the bridge over Interstate Highway 494 at Penn Avenue South (the "Project"); and WHEREAS, the PFA has committed to make a loan to the City in the principal amount of $6,700,000, to be disbursed and repaid in accordance with the terms of a Public Facilities Authority Project Loan Agreement And General Obligation Bond Purchase Agreement (the "Project Loan Agreement") executed by the PFA and City, a copy of which • is before .this meeting and on file with the City Clerk; the Project Loan Agreement, as executed, is incorporated by reference; and WHEREAS, the City is authorized by Minnesota Statutes, chapter 429 to issue and sell its general obligation (the "Note" as defined below) to finance the Project; and WHEREAS, the Note of the City is intended to bear interest that is exempt from federal and state income taxes; and WHEREAS, in accordance with Minnesota Statutes, section 475.60, subdivision 2(4), the City is authorized to issue and sell obligations to a board, department or agency of the State of Minnesota by negotiation and without advertisement for bids and the PFA is, and has represented that it is, a board, department or agency of the State of Minnesota; and WHEREAS, a contract or contracts for the Project have been made by the City with the approval of the PFA and all other state and federal agencies whose approval is required: NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Hennepin County, Minnesota, as follows: 1. Acceptance of Offer: Payment. The offer of the PFA to purchase a $6,700,000 General Obligation Improvement Note of 2001 of the City (the "Note"), at the rate of interest hereinafter set forth, and to pay therefor the par amount of the Note as provided below, is accepted, and the sale of the Note is awarded to the PFA. Payments for the Note are to be disbursed in installments as eligible costs of the Project are .reimbursed • or paid, all as provided in the Project Loan Agreement. 2. Title: Date: Denomination: Interest Rates: Maturities. The Note will be a fully registered negotiable obligation, titled the "General Obligation Improvement Note of 2001", dated as of the date of delivery and issued forthwith. The Note is in the principal amount of $6,700,000 or so much thereof as is disbursed pursuant to the Project Loan Agreement, bearing interest on so much of the principal amount of the Note as (i) may be disbursed from time to time as provided in the Project Loan Agreement and (ii) remains unpaid, until the principal amount of the Note has been paid or has been provided for, at the rate of 1.84% per annum (calculated on the basis of a 360-day year of twelve 30-day months). Interest on the Note is payable semi-annually on February 20 and August 20, commencing February 20, 2002. Principal of the Note matures on August 20 of the years and in the installments as follows: Year Amount 2004 $ 20,000 2005 4,680,000 2006 2,000,000 Interest will accrue only on the aggregate principal amount of the Note that has been disbursed and is unpaid under the Project Loan Agreement. The principal installments are to be paid in the amounts scheduled above even if at the time of payment the full principal amount of the Note has not been disbursed; provided that if the full principal amount of the Note is never disbursed, the amount of the principal not disbursed is to be applied to reduce each unpaid principal installment in the proportion that such installment bears to the total of all unpaid principal installments (i. e., the remaining principal payment schedule will be reamortized to provide similarly level annual • installments of total debt service payments). Principal, interest and any premium due under the Note will be paid on each payment date by wire payment, or by check or draft mailed at least five business days prior to the payment date to the person in whose name the Note is registered, in any coin or currency of the United States which at the time of payment is legal tender for public and private debts. Interest on the Note includes amounts treated by the PFA as service fees. 3. Purpose: Cost. The proceeds of the Note are intended to provide funds to finance construction of the Project. The total cost of the construction of the Project, including legal and other professional charges, publication and printing costs, interest accruing on money borrowed for the Project before the collection of revenues pledged and appropriated therefor, and all other costs necessarily incurred and to be incurred from the inception to the completion of the Project, is estimated to be at least equal to the amount of the Note. The City covenants that it will do all things and perform all acts required of it to assure that work on the Project proceeds with due diligence to completion and that any and all permits and studies required under law for the Project are obtained. 4. Redemption. The Note is subject to redemption and prepayment in whole or in part (i) at the option of the City or (ii) mandatorily, as provided in the Project Loan Agreement. If redemption is in part, installments of principal payable last under the Note must be prepaid first, unless the City and the holder of the Note agree to a different manner of payment. • 5. Registration of Note. At the time of issuance and delivery of the Note, the City Clerk (the "Clerk") must register the Note in the name of the payee in a note register maintained for the purpose of registering the ownership of the Note. The Note is to be prepared for execution with an appropriate text and spaces for notation of registration. The force and effect of such registration is as stated in the form of Note. Payment of principal installments and interest, whether upon redemption or otherwise, made with respect to the Note, may be made to the registered holder thereof without presentation or surrender of the Note. 6. Form of Note. The Note, together with the Certificate of Registration attached thereto, will be in substantially the following form: UNITED STATES OF AMERICA STATE OF MINNESOTA CITY OF RICHFIELD HENNEPIN COUNTY $6,700,000 GENERAL OBLIGATION IMPROVEMENT NOTE OF 2001 KNOW EVERYONE BY THESE PRESENTS that the City of Richfield, a municipal corporation in Hennepin County, Minnesota (the "City"), acknowledges that it is indebted and for value received promises to pay to the Minnesota Public Facilities Authority or the registered assigns, the principal sum of $6,700,000, or so much thereof as may have been disbursed, on August 20 of the years and in the installments as follows: • Year Amount 2004 $ 20,000 2005 4,680,000 2006 2,000,000 and to pay interest on so much of the principal amount of the debt as (i) may be disbursed from time to time as provided in the Project Loan Agreement (as defined below) and (ii) remains unpaid until the principal amount hereof is paid or has been provided for, at the rate of 1.84% per annum (calculated on the basis of a 360-day year of twelve 30-day months). Interest on this Note is payable semiannually on each February 20 and August 20, commencing, February 20, 2002. Principal and Interest Payments. Interest accrues only on the aggregate amount of this Note that has .been disbursed under the Public Facilities Authority Project Loan Agreement and General Obligation Bond Purchase Agreement dated as of , 2001, by and between the City and the Minnesota Public Facilities Authority (the "Project Loan Agreement"). The principal installments that will be paid in the amounts scheduled above even if at the time of payment the full principal amount of this Note has not been disbursed; provided that if the full principal amount of this Note is never disbursed, the amount of the principal not disbursed is to be applied to reduce each unpaid principal • installment in the proportion that such installment bears to the total of all unpaid principal installments (i. e., the remaining principal payment schedule is to be reamortized to provide similarly level annual installments of total debt service payments). Interest on this Note includes amounts treated by the Minnesota Public Facilities Authority as service fees. Principal, interest and any premium due under this Note will be paid on each payment date by wire payment, or by check or draft mailed at least three business days prior to the payment date to the person in whose name this Note is registered, in any coin or currency of the United States of America which at the time of payment is legal tender for public and private debts. Redemption. This Note is subject to redemption and prepayment in whole or in part (i) at the option of the City and (ii) mandatorily, as provided in the Project Loan Agreement. If redemption is in part, installments of principal payable last under this Note must be prepaid first, unless the City and the holder of this Note agree to a different manner of payment. Purpose.; General Obligation. This Note has been issued pursuant to and in full conformity with the charter of the City and the constitution and law of the State of Minnesota for the purpose of providing money to finance eligible project costs of a highway improvement project (Project), specifically to construct a replacement bridge over Interstate Highway 494 at Penn Avenue South in the City, and is payable out of a special • PFA Debt Service Account of the City to which account have been pledged by the Project. This Note has been issued pursuant to and in full conformity with Minnesota Statutes, chapter 429, and the principal of and. interest hereon are payable primarily from special assessments against benefited property as set forth in a resolution of the City Council adopted on September 10, 2001 to which reference is made for a full statement of rights • and powers thereby conferred. The full faith, credit and taxing powers of the City are irrevocably pledged for payment of this Note and .the City Council has obligated itself to levy ad valorem taxes on all taxable property in the City in the event of any deficiency in state-aid pledged which additional taxes may be levied without limitation as to rate or amount. Registration: Transfer. This Note must be registered in the name of the payee on the books of the City by presenting this Note for registration to the City's Finance Manager, who will endorse the Finance Manager's name and note the date of registration opposite the name of the payee in the certificate of registration attached hereto. Thereafter this Note may be transferred to a bona fide purchaser only by delivery with an assignment duly executed by the registered owner or owner's legal representative, and the City may treat the registered owner as the person exclusively entitled to exercise all the rights and powers of an owner until this Note is presented with such assignment for registration of transfer, accompanied by assurance of the nature provided by law that the assignment is genuine and effective, and until such transfer is registered on said books and noted hereon by the City Finance Manager. Fees Upon Transfer or Loss. The Finance Manager may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer of this Note and any legal or unusual costs .regarding transfers and lost notes. Project Loan Agreement. The terms and conditions of the Project Loan Agreement are incorporated herein by reference and made a part hereof. The Project Loan Agreement may be attached to this Note and must be attached to this Note if the holder of this Note is any person other than the Minnesota Public Facilities Authority. Tax-Exempt Obligation. The City intends that the interest to be paid on this Note will be excluded from gross income for United States income tax purposes or from both gross income and taxable net income for State of Minnesota income tax purposes. IT IS .HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the home rule charter of the City and the Constitution and laws of the State of Minnesota to be done, to happen and to be performed, precedent to and in the issuance of this Note, have been done, have happened and have been performed, in regular and due form, time and manner as required by .law; and that the issuance of this Note does not cause the indebtedness of the City to exceed any constitutional, statutory or charter limitation of indebtedness. IN WITNESS WHEREOF, the City of Richfield, Hennepin County, Minnesota, by its City Council has caused this Note to be executed on its behalf by the signatures of its Mayor and City Manager, all as of , 2001. • • CITY OF RICHFIELD, MINNESOTA Mayor City Manager General Obligation Improvement Note of 2001 CERTIFICATE OF REGISTRATION The transfer of ownership of the principal amount of the attached Note may be made only by the registered owner or by the owner's legal representative last noted below. DATE OF REGISTRATION SIGNATURE OF REGISTERED OWNER FINANCE MANAGER Minnesota Public ~ Facilities Authority i Saint Paul, Minnesota Federal Employer Identi- fication No. 4 I-6007162 7. Execution. The Note is to be executed on behalf of the City by the signatures of its Mayor and its City Manager. In the event of disability or resignation or other absence of either suc'~i officer, the Note may be signed by the manual signature of that officer who may act on behalf of such absent or disabled officer. In case either such officer whose signature will appear on the Note ceases to be such officer before the delivery of the Note, that signature will nevertheless be valid and sufficient for all purposes, the same as if that officer had remained in office until delivery. 8. Delivery; Application of Proceeds. The Note when so prepared and executed will be delivered by the Finance Manager to the purchaser thereof prior to disbursements pursuant to the Project Loan Agreement, and the purchaser is not obligated to see to the proper application those disbursements. 9. Payment: Security; Pledges and Covenants. (a) The Note is payable from the Improvement Note of 2001 Debt Service Fund (PFA Debt Service Fund) hereby created, and the proceeds of special assessments (Assessments) levied or to be levied for the Project are hereby pledged to the PFA Debt Service Fund. If a payment of principal or interest on the Note becomes due when there is not sufficient money in the PFA Debt Service Fund to pay the same, the City Finance Manager is directed to pay such principal or interest from the general fund of the City, and the general fund will be reimbursed for the advances out of the proceeds of Assessments when collected. (b) The proceeds of the Note, together with any other funds appropriated for the Project, and Assessments collected during the construction of the Project will be deposited in a separate construction fund (the PFA Construction Fund) to be used solely to defray expenses of the Project and the payment of principal and interest on the Note prior to the completion and payment of all costs of the Project. Any balance remaining in the PFA Construction Fund after completion of the Project may be used to pay the cost in whole or in part of any other improvement instituted under Minnesota Statutes, Chapter 429. When the Project is completed and the cost thereof paid, the construction account is to be closed and subsequent collections of Assessments for the Project are to be deposited in the PFA Debt Service Fund. (c) It is hereby determined that the Project will directly and indirectly benefit abutting property, and the City hereby covenants with the holders from time to time of the Note as follows: S (i) The City has caused or will cause the Assessments for the Project to be promptly levied and will take all steps necessary to assure prompt collection, and the levy of the Assessments is hereby authorized. The City Council will cause to be taken with due diligence all further actions that are required for the construction of each Project financed wholly or partly from the proceeds of the Note, and will take all further actions necessary for the final and valid levy of the Assessments and the appropriation of any other funds needed to pay the Note and interest thereon when due. (ii) In the event of any current or anticipated deficiency in Assessments the City Council will levy ad valorem taxes in the amount of the current or anticipated deficiency. (iii) The City will keep complete and accurate books and records showing: receipts and disbursements in connection with the Project, Assessments levied therefor and other funds appropriated for their payment, collections thereof and disbursements therefrom, monies on hand .and, the balance of unpaid Assessments. (iv) The City will cause its books and records to be audited at least annually and will furnish copies of such audit reports to PFA on request. (d) It is hereby determined that the estimated collections of Assessments and interest thereon for payment of principal and interest on the Note will produce at least five percent in excess of the amount needed to meet when due, the principal and interest payments on the Notes and that no tax levy is needed at this time. (e) The City Clerk is authorized and directed to file a certified copy of this resolution with the Taxpayer Services Division Manager of Hennepin County and to obtain the certificate required by Minnesota Statutes, section 475.63. 10. Project Loan Agreement. The Project Loan Agreement is approved in substantially the form heretofore presented to the City Council, and in the form executed is hereby incorporated by reference and .made a part of this .resolution. Each and all of the provisions of this resolution relating to the Note. are intended to be consistent with the provisions of the Project Loan Agreement, and to the extent that any provision in the Project Loan Agreement is in conflict with this resolution as it relates to the Note, that provision controls and this resolution is deemed accordingly modified. The Mayor and City Manager are hereby authorized and. directed to execute the Project Loan Agreement. The execution of the Project Loan Agreement by the appropriate officers is conclusive evidence of the approval of the Project Loan Agreement in accordance with the terms hereof. The Project Loan Agreement may be attached to the Note, and must be attached to the Note if the holder of the Note is any person other than the PFA. 11. Records and Certificates. The officers ofthe City are hereby authorized and directed to prepare and furnish to the PFA, and to the attorneys approving the legality of the issuance of the Note, certified copies of all proceedings and records of the City relating to the Note and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Note as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, are to be deemed representations of the City as to the facts recited therein. 12. Negative Covenants as to Use of Proceeds and Project. The City hereby covenants not to use the proceeds of the Note or to use the Project, or to cause or permit either of them to be used, or to enter into any deferred payment arrangements for the cost of the Project, in such a manner as to cause the Note to be a "private activity bond" within the meaning of Sections 103 and 141 through 150 of the Code. The City reasonably expects that no actions will be taken over the. term of the Note that would cause it to be a "private activity bond", and the average term of the Note is not longer than reasonably necessary for governmental purpose. The City covenants not to use the proceeds of the Note in such a manner as to cause the Note to be a "hedge bond" within the meaning of Section 149(g) of the Code. 13. Tax-Exempt Status of the Note: Rebate. The City will comply with requirements necessary under the -Code to establish and maintain the exclusion from gross income on the .Note under Section 103 of the Code, including without limitation requirements relating to temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the Note. 14. Severability. If any section, paragraph or provision of this resolution is held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision will not affect any of the remaining provisions of this resolution. 15. Headings. Headings in this resolution are included for convenience of reference only and are not a part hereof and do not limit or define the meaning of any provision hereof. The motion for the adoption of the foregoing resolution was duly seconded by member and, after full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. U STATE OF MINNESOTA . COUNTY OF HENNEPIN CITY OF RICHFIELD I, the undersigned, being the duly qualified and acting Clerk of the City of Richfield, Hennepin County, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a regular meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to said City's $6,700,000 General-Obligation Improvement Note of 2001. WITNESS my hand and the official seal of the City this day of 2001. • City Clerk • PUBLIC FACILITIES AUTHORITY PROJECT LOAN AND GENERAL OBLIGATION BOND PURCHASE AGREEMENT TRANSPORTATION REVOLVING FUND Project #MPFA-01-0083-R-FY02 THIS PROJECT LOAN AND. GENERAL OBLIGATION .BOND PURCHASE AGREEMENT (this "Loan Agreement"), dated as of the last date of execution hereof as set forth on the signature page and effective from the time of execution and delivery hereof, is by and between MINNESOTA PUBLIC FACILITIES AUTHORITY (the "Authority"), a body politic and corporate of the State of Minnesota (the "State"), organized and existing under and by virtue of the laws of the State, including specifically, -.the Minnesota Public Facilities Authority Act, Minnesota Statutes, Chapter 446A, as amended and in effect on the date hereof and as it may hereinafter be amended or supplemented (the "Act"), and THE CITY OF RICHFIELD, MINNESOTA, a political subdivision of-the. State, duly organized and existing under the laws of the State and its charter (the "Borrower"). The proceeds of the loan made pursuant to this Loan Agreement (this "Loan") are to be used to pay the costs ("Costs") permitted to be financed by the Authority pursuant to the Act and the rules of the Authority. and the Minnesota Department of Transportation (the "Rules") of the approved facilities described in the application of the Borrower to the Authority and as generally described in Exhibit B hereto (the "Project"). '" The Authority and the Borrower intending to be legally .bound hereb and in ` Y consideration of the mutual covenants hereinafter contained, do hereby agree as follows: ARTICLE I -REPRESENTATIONS Section 1.1. Representations by Authority. The Authority hereby represents that (a) it was duly created by and is in existence under the provisions of the Act and has the power to .enter into the transactions contemplated by this Loan Agreement and to carry out its obligations hereunder; (b) it is not in default under any of the provisions of the laws of the State that would affect its existence or its powers referred to in this Section; (c) it and Transportation Committee of the Authority (the. "Transportation Committee") have taken due and proper action to authorize the execution and delivery of this Loan Agreement; and (d) it and the Transportation Committee received certification of the Project by the Commissioner of Transportation of the State (the "Commissioner of Transportation") before consideration of the Loan by _ the Transportation Committee as contemplated by Minnesota Statutes, Section 446A.085, subd. 6, as amended. Section 1.2. Representations by the Borrower. The Borrower makes the following affirmative representations asthe basis for the undertakings on the Authority's part .herein contained: (a) (i) The Borrower is a political subdivision duly organized and existing under the laws of the State and its charter; (ii) it has authority to own and operate its facilities and has full right and lawful authority to enter into, execute, deliver and perform TRLF Bond Funded City of Richfield MPFA-Ol-0083-R•FY02 August 21, 2001 this Loan Agreement and its full faith and credit, general obligation note, delivered by it to the .Authority to evidence and secure its payment obligations under the Loan Agreement (the "Note"); (iii) it has been duly authorized by .proper corporate action (the "Note Resolution") to execute and deliver this Loan Agreement and the Note and any and all instruments and documents necessary to the consummation of the transactions contemplated hereby. (b) The Note Resolution has been duly and validly adopted by the governing body of the Borrower at a meeting called and held in compliance with law at which a quorum was present and acting throughout. (c) Neither the execution and delivery of this Loan Agreement or the Note, the adoption of the Note Resolution, the consummation of the transactions contemplated thereby nor the fulfillment of or compliance with the terms and conditions thereof conflicts with or results in a breach of any of the terms, conditions or provisions of any restriction or any agreement or instrument to which the Borrower is now a party or by which it is bound, or constitutes a default, or results in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of the Borrower, other than as permitted or created thereby. (d) The Borrower will acquire, construct and operate or cause to be acquired, constructed and operated, the Project; and each part thereof, as a project as defined in the Act and the National Highway System Designation Act of 1995, Public Law No. 104-59, as amended (the "Federal Act"). ARTICLE II -LOAN TERMS AND CONDITIONS Section 2.1. The Loan; Term of Loan Agreement. The Authority hereby loans to the Borrower the amount of $6,700,000 or such lesser amount as is actually disbursed to the Borrower pursuant to Article III of this Loan Agreement. The Borrower hereby borrows such amount and agrees to repay such amount, with interest thereon, at the times and the amounts and with the interest thereon as set forth in Section 2.2 hereof. The Authority's obligation to disburse the principal amount of the Loan is expressly subject to the availability of funds to the Authority. The Borrower expressly acknowledges that the Authority may not have funds .available at the time of execution and delivery of this Loan Agreement and is not required to segregate or escrow amounts for disbursements. This Loan Agreement and the Note shall remain in full force and effect from their dates of execution and delivery until the date on which the principal of, and interest and premium, if any, hereunder and on, the Note and all other amounts payable hereunder and under the Note shall have been fully paid by or on behalf of the Borrower or provision for the payment thereof acceptable to the Authority shall have been made by or on behalf of the Borrower, at which time this Loan Agreement and the Note shall terminate and the Authority shall release and cancel. this Loan Agreement and the Note. Section 2.2. Amounts Payable. (a) The Borrower agrees to repay the principal • amount of the Loan in installments in .the principal amounts and on the dates set forth in the TRLF Bond Funded 2 City of Richfield MPFA-01-0083-R-FY02 August 21, 2001 schedule set forth in Exhibit A hereto (notwithstanding the rate of disbursement of the proceeds • of the Loan), together with interest on the disbursed and outstanding principal amount of the Loan at the rate of interest of 1.84% per annum for the period starting on the date of the first disbursement of Loan proceeds pursuant to Section 4.03 hereof through the date upon which no principal remains unpaid. Interest on the disbursed and outstanding principal amount of the Loan is payable commencing February 20, .2002, and on each February 20 and August 20 thereafter. Actual interest payable on this Loan may vary from the interest amounts indicated in Exhibit A depending upon the actual rate of disbursement of the Loan and prepayments, if any. (b) In addition upon certification of such amounts by the Authority to the Borrower in writing, the Borrower shall pay to the Authority .any _and all _charges, fees, costs and expenses which the Authority has incurred or paid in connection with (i) the enforcement, defense or preservation of any rights or security in this Loan Agreement or the Note; (ii) the pursuit of any remedies under this Loan Agreement or the Note or otherwise afforded by law or equity; (iii) the amendment, waiver or other action with respect to, or related to this Loan Agreement or the Note whether or not executed or completed; (iv) the violation of the Borrower or any law, rule or regulation,. or any judgment, order or decree applicable to it or the breach of any agreement of the Borrower in this Loan Agreement or the Note; or (v) any litigation or other dispute in connection with this Loan Agreement or the Note or the transactions contemplated thereby. (c) The obligations of the Borrower under the Note shall be deemed to be amounts payable under this Section. Each payment made pursuant to the Note shall be deemed to be a credit against the corresponding obligation of the Borrower under this Section and any such payment shall fulfill the Borrower's obligation to pay such amount hereunder. (d) The Borrower acknowledges that neither the Loan Agreement nor the Note provide any grace period or notice requirements for the repayment of the principal of and interest on the Loan and agrees to make such payments when due without notice or request from the Authority. (e) All payments to the Authority pursuant to this Loan Agreement and the Note may be pledged and assigned by the Authority, and the Transportation Committee, as security for the payment of the any .bonds,.. notes or other obligations of the Authority ("Bonds") and the interest thereon and the performance of the obligations of the .Authority under the resolution, trust indenture or other documents pursuant to which the Bonds are issued (the "Bond Resolution"). The Borrower consents to .such pledge and assignment. (f) The Authority shall be entitled to retain for its purposes any investment earnings on all .funds and accounts in the. Transportation Revolving .Loan Fund, as defined in the Act, and shall not be obligated to credit against any required repayment of principal or payment of interest any such interest earnings, including, without limitation, interest earnings on any undisbursed loan proceeds or any Loan repayments. Principal amounts of the Loan, if any, which will not be disbursed pursuant to Section 3.3(e) hereof will be applied to reduce principal installments as set forth in such Section 3.3(f). TRLF Bond Funded 3 City of Richfield MPFA-01-0083-R-FY02 August 21, 2001 (g) The Borrower represents and covenants that no funds used to make • payments due under this Loan Agreement or the Note will be derived directly or indirectly from funds of the "trunk highway fund", the "county state-aid highway fund" or the "municipal state-aid street fund" (all within the meaning of the Constitution of the State) derived from the proceeds of taxes deposited therein and that it has not .pledged and does not intend to use any such funds to the payment of this Loan Agreement or the Note. Section 2.3. .Prepayments. The Borrower shall have the option to prepay the loan in whole or in part on any February 20 or August 20 occurring on or after the first date on which the Bonds are subject to optional redemption at the direction of the. Authority,_upon 45 days prior written notice to the Authority, at a price equal to 100% of the principal amount to be prepaid, together with accrued interest thereon to the redemption date and a premium equal to the amount, if any, calculated in the, sole discretion of the Authority, of all fees and expenses of the Authority including prepayment penalties on the Bonds, if any (the "Prepayment Premium"). The Prepayment Premium shall be an amount equal to (i) all fees and expenses of the Authority including prepayment penalties on its Bonds, if any, to and in connection with the prepayment and money in an amount sufficient, together with the prepaid principal, interest on such amount and the prepaid principal and the remaining Loan repayments if any, which will produce amounts sufficient to pay, when due, the Loan repayments due on the Loan prior to the prepayments or (ii) such lesser amount. as the Authority may, in its sole discretion, request. The interest earnings and the calculation of the premium shall be determined by the Authority in its sole discretion. • The Authority may re uire an o inion from a law firm selected b the Authorit havin q P Y Y~ g a national reputation in the field of municipal law whose legal opinions are generally accepted by purchasers of municipal bonds ("Bond Counsel") to the effect that such .prepayment will not cause the interest on Bonds and the Note. to be included in the gross income of the recipient thereof for federal income tax purposes. In the event that special assessments are pledged to the repayment to the Note and the Borrower receives prepayments of such special assessment, the Borrower is hereby required, and hereby agrees, to apply such prepayments to the prepayment of the principal of the Note and this Loan on the February 20 or August 20 next following the receipt thereof. Such prepayment shall be without a Prepayment Penalty. The principal amount of a partial prepayment shall be applied to reduce each unpaid annual principal installment required with respect to this Loan in the proportion that such installment bears to the total of all unpaid principal installments (i.e., the remaining principal payment schedule shall be re-amortized to provide proportionately reduced principal payments in each year) with respect to the Loan. The Loan and .the Note shall be re-amortized on the same basis to result in identical amortization of the Loan and the Note. _ Any payments received by the Authority in excess of-the principal of and interest on this Loan and the Note not expressly designated by the Borrower to be treated as a prepayment may, • in the sole discretion of the Authority, be (i) held without interest payable by the Authority and TRLF Bond Funded 4 City of Richfield MPFA-Ol-0083-R-FY02 August 21, 2001 applied to a future principal payment due on the Note, (ii) treated as a prepayment of principal on • the Note, or (iii) returned to the Borrower as an overpayment. Section 2.4. General Obligation of the Borrower. This Loan Agreement and the Note are general obligations of the Borrower and the full faith and credit of the Borrower is pledged to the payments. required hereunder and under the Note. The Borrower hereby acknowledges and specifically agrees that the Note constitutes a general obligation bond of the Borrower notwithstanding the existence of this Loan Agreement and shall be shown as such on its financial statements and shall be treated in all respects a general obligation bonds of the Borrower. Section 2.5. Obligation to Make Payments Absolute. The obligation of the Borrower to pay or cause. to be paid the amounts payable under this Loan Agreement and the Note shall be absolute, irrevocable, complete and unconditional and the amount, manner and time of payment of such amounts shall not. be decreased, abated, rebated, setoff, reduced, abrogated, waived, diminished or otherwise modified in any manner or to any extent whatsoever regardless of any right of setoff, recoupment or counterclaim that the Borrower might otherwise have against the Authority or any other person or that the Authority may have against any other party, and regardless of any contingency, force majeure, event or cause whatsoever and notwithstanding any circumstance or occurrence that may arise or take place before, during or after the completion of the Project. Specifically, without limitation, the Borrower is obligated to perform all obligations and pay all amounts due hereunder and under the Note regardless of the default or nonperformance of any other party to any agreement relating to the Project. The Authority may enforce this Loan Agreement and the Note without first or ever seeking to enforce • any such agreement. Section 2.6. .Issuance and Purchase of Note. Prior to the disbursement of any principal amount of this Loan, the Borrower shall authorize, issue and deliver the Note, in form and substance acceptable to the Authority, to evidence and secure its obligations under this Loan Agreement. The Authority hereby agrees to purchase such Note. It is a condition to the purchase of the Note that the Borrower shall deliver to the Authority an executed copy of the Note, a certified copy of resolutions or other authority by the appropriate governing body or bodies as shall legally authorize the execution and performance of this agreement and the Note and opinions, certificates and documents requested by and in a form acceptable to the Authority. For purposes of permitting issuance of the Note and the purchase of the Note by the Authority, .the Authority represents that it is a "board, Department or agency" of the State within the meaning of Minnesota Statutes, Section 475,60, subd. 2, clause (4), as amended or supplemented from time to time. ARTICLE III -THE PROJECT; DISBURSEMENT OF LOAN PROCEEDS Section 3.1. Construction and Acquisition of the Project. The Borrower. shall cause the Project to be constructed or acquired as a project as defined in the Act and the Federal Act and to .use the proceeds of the Loan exclusively for the eligible costs of the Project all in accordance with the disbursement procedures described below: The Borrower shall endeavor to construct and acquire the Project, or cause the Project to be acquired and constructed, with due . diligence to the end that the Project will be completed on or before the third anniversary date of TRLF Bond Funded 5 City of Richfield MPFA-01-0083-R-FY02 August 21, 2001 this Loan Agreement or such earlier date represented to the Authority as the Borrower's expected date of completion (the "Completion Date"). When construction bids or proposals for the Project are received and opened, the Borrower shall provide copies of the bids or proposals to the Authority upon request. Section 3.2. Disbursements. (a) The Loan will be disbursed on a cost reimbursement basis, consistent with the budget presented in the Borrower's loan application, incorporated herein by reference, but not in violation of any provisions of applicable federal and state regulations. All Borrower disbursement requests shall be reviewed by the Authority and subject to the approval of the Authority in accordance with its Rules, including without limitation, Minnesota Rules 7380-0705 to 7380.0775, as amended or supplemented from time.to.time. The Authority may withhold or disallow all or part of the amount requested pursuant to Minnesota Rules 7380.0765, subp. 3, if the Authority determines the Borrower's disbursement request is not in compliance with program statutes, rules, or terms and conditions of this Agreement. (b) Disbursements shall be made by the Authority to the Borrower within 30 days of a request therefor made by the Borrower in the form, and at the times, determined by the Authority, unless the Authority determines to withhold disbursement in accordance with the provisions of this Agreement. (c) The Authority will reimburse the Borrower for costs incurred prior to the execution of this Agreement only to the extent approved in connection with the approval of the loan application. (d) No funds shall be disbursed by the Authority to the Borrower until such time as the Borrower delivers its general obligation revenue note to the Authority .for the full amount of the Loan. (e) In the event that the Borrower determines at any time prior to the first disbursement of Loan Proceeds that it does not intend to draw any Loan Proceeds, the Borrower covenants to promptly notify the Authority in writing of such fact and this Loan Agreement shall terminate as set forth in Section 6.3 hereof and the Authority shall have no further obligations. hereunder to advance funds. After the first disbursement, if the Borrower determines that it will not draw all of the available Loan Proceeds, the Borrower covenants that it will promptly notify the Authority of such fact and the amount of Loan Proceeds not to be so disbursed will be applied to reduce the required amortization of this. Loan in the manner set forth in this Section and in Section 2.3 of this Loan Agreement. (f) If at any time prior to the Completion Date, the Borrower determines that it will not draw down the entire amount of this Loan, or the Authority determines, as permitted hereunder, that it will not advance the entire amount of this Loan, such party shall promptly notify the other in writing specifying the total amount to be drawn. If on that date which is three years from the date hereof there remains undisbursed Loan proceeds, such undisbursed amount shall no longer be available for disbursement, unless otherwise agreed by the Authority. Amounts so determined never to be .disbursed shall • reduce the required amortization of principal in the same .manner as a prepayment pursuant to Section 2.3 hereof. TRLF Bond Funded 6 City of Richfield MPFA-OI-0083-R-FY02 August 21, 2001 Section 3.3. Payment of Excess Costs of Project. The Borrower shall pay, or cause to be paid, any costs of acquisition, construction and equipping of the Project in excess of the amount of moneys representing proceeds of this Loan, without regard to the default of any other party obligated to pay a portion of such costs. Section 3.4. Compliance with Applicable Governmental Standards and Requirements. The Borrower represents that the Project shall at all times comply with all governmental standards and requirements applicable to the Borrower and the Project of all departments and agencies of the State and the United States of America and any political subdivision thereof having jurisdiction. The Borrower shall not recommend, agree to or permit any changes, revisions or modifications to any portion of the Project or the operation thereof that would in any way adversely affect compliance by the Borrower with such standards and requirements. The Borrower shall take any and all action necessary to ensure compliance with all future such standards and requirements within a reasonable time of promulgation of such standards or requirements by the appropriate governmental body. The Borrower shall have the right to contest the validity of such standards or requirements in good faith, so long as neither the security of the Authority, the ability of the Authority to retain the federal capitalization grants awarded to the Authority for the Transportation Revolving Loan Fund, nor the ability of the Borrower to comply with the provisions of this Loan Agreement is adversely affected thereby. The. Borrower represents that it is, and. will remain, in compliance with all laws, ordinances, rules and regulations to which it is subject, non-compliance with which would materially adversely affect the condition (financial or otherwise) of the Borrower or the ability of . the Borrower to conduct its activities or undertake or complete the Project; and has obtained or will obtain all licenses, permits, franchises or other governmental authorizations presently necessary for the ownership of its property or .for the conduct of its activities which, if not obtained, would materially adversely affect the ability of the Borrower to conduct its activities or undertake or complete the Project or the condition (financial or otherwise) of the Borrower. The Borrower will comply with the requirements of all applicable laws, rules, regulations and orders of any governmental authority that relate to the construction and operation of the Project. In particular, but without limitation, the Borrower shall comply with all federal requirements and with the following if and to the extent applicable to the Project: (a) Minnesota Human Rights Act; (b) Minnesota State Building Code; (c) Minnesota Statutes sections 176.181 - 176.182 requiring recipients and subcontractors to have worker's compensation insurance coverage; (d) Minnesota Statutes sections M.S. 177.41-177.43 the Minnesota prevailing wage rate law; (e) .Minnesota Statute 290.9705 requiring 8% of each payment paid to out-of- statecontractors for work done in Minnesota must be withheld on any contracts that exceeds or could reasonably be expected to exceed $100,000, .unless the requirement is • waived; TRLF Bond Funded 7 Ciry of Richfield MPFA-01-0083-R-FY02 August 21, 2001 (f) Minnesota Rules Ch. 8820, Department of Transportation Local State-Aid Route Standards, Financing; (g) Department of Transportation "Standard Specifications for Construction" and "Special Provisions' ; (h) Minnesota Department of Transportation Disadvantaged Business Enterprise (DBE) program participation goals established in accordance with regulations of the U.S. Department of Transportation 49 CFR Part 26; (i) All real estate acquisitions and relocations shall be conducted in accordance with 49 CFR Part 24, Uniform Relocation Assistance and Real .Property Acquisition for Federal and Federally Assisted Programs and 23 CFR Parts 130, 480, 620, 630, 645 and 710; (j) Title 23 (Highway) and 49 (Transit Capital) of the United States Code and the Code of Federal Regulations; (k) National Highway System Designation Act of 1995, P.L. Number 104 - 59, as amended; (1) Davis -Bacon and Related Acts; (m) National Environmental Policy Act (NEPA) and federal regulations promulgated thereunder, and related laws including but not limited to: National Historic • Preservation Act (Section 106), Section 4F of Transportation Act of 1966, Clean Air Act and Clear Water Act; (n) Section 504 of the Federal Rehabilitation Act of 1973, the Americans with Disabilities Act (ADA); (o) Title VI of the Civil Rights Act of 1964 (P.L. 88-352) and subsequent regulations -Ensures access to facilities or programs regardless of race, color, national origin, sex, or age; (p) Executive Order 11246, as amended by Executive Orders 11375 and .12086 and subsequent regulations -Prohibits employment discrimination on the basis of race, color, religion, sex or national origin; (q) 49 CFR Part 18, Uniform Requirements for Grants; and (r) Buy American Act of 1988. The Borrower shall include in any contract or subcontract related to the. Project, in addition to the provisions to define a sound and complete agreement, such provisions as to require contractor and subcontractor compliance with applicable state and federal laws. • Section 3.5. Right to Enter; Notices of Deficiency; Termination of Disbursements. The Borrower shall permit the Department of Transportation, the Department of Trade and TRLF Bond Funded $ City of Richfield MPFA-O1-0083-R-FY02 August 21, 2001 Economic Development ("DYED"), the Authority and the federal government (including but not • limited to the Federal Highway Administration or the Federal Transit Administration) and any party designated by any of such parties to examine, visit and inspect, at any and all reasonable times, the property, if any, constituting the Project, -and to inspect and make copies of any accounts, books and records, including, without .limitation, its records regarding receipts, disbursements, contracts, investments and any other matters relating thereto and to its financial standing, and shall supply such reports and information as such inspecting party may reasonably require in connection herewith. In addition, upon the written request of the Authority, the Borrower shall provide the Authority with copies of loan documents or other financing documents. and any official statements or other forms of offering documents relating to any other bonds, notes or other indebtedness of the .Borrower that .are. issued .after he-.execution and delivery of this Loan Agreement. To the extent required by, and as set forth in the Interagency Agreement by and among the Department of Transportation, DIED and the Authority as from time to time amended or supplemented (the "Interagency Agreement"), if at anytime the Department of Transportation has cause to believe a Project may not be completed or undertaken according to applicable law and the construction schedule, the Department of Transportation may issue a letter requiring specific action to be taken within a specific time period to assure timely completion of the Project; and if at any time the Authority is caused to believe the Project may not be undertaken in accordance with the terms of the Loan Agreement and applicable law, or violates. this Loan Agreement or the Note, the Authority will issue a letter requiring specific action to be undertaken within a specific time period to assure timely correction of the deficiency. The Borrower agrees to undertake such specifications with due diligence within such specific time period. • To the extent required by, and as set forth in the Intera enc A reement, failure to g Y g comply with the specific action within the specified time period will result in the termination of the obligation of the Authority to disburse further amounts of the Loan, to the extent to which amounts remain undisbursed, upon notification of the Borrower by the Department. of Transportation, DYED and the Authority. Section 3.6. Amendment of Project. The Project may. be amended, upon the written request of the Borrower, but subject to the Authority's approval, in order to increase or .decrease the scope of the Project or to make changes within. the Project as originally designed and planned, provided that (i) any amendment is within the definition of a "project" in the Federal Act, the Act and the Rules, (ii) any additional moneys required to pay any cost of the Project resulting from such amendment are made available by the Borrower from its general funds or any other moneys legally available to .the Borrower, and (iii) all applicable governmental approvals are obtained by the Borrower (including, without limitation, certification of the Department. of Transportation, if applicable). All requests for amendments by the Borrower where there is a change in the scope of the Project will be governed by the terms of the Interagency Agreement, ...including, without limitation, submission by the Transportation Committee of such request to the Department of Transportation for review. - Section 3.7. No Warranty by Authority. The Authority makes no warranty, either express or implied, of the actual or designed. capacity of the Project, of the suitability of the • TRLF Bond Funded 9 City of Richfield MPFA-O1-0083-R-FY02 August 21, 2001 Project for the purposes specified in this Loan Agreement, of the condition of the Project or of the suitability of the Project for the Borrower's purposes or needs. The Borrower agrees to exert all `reasonable efforts to investigate claims which the Borrower may have against third parties with respect to the construction of the Project and, in appropriate circumstances, take whatever action, which may include legal action, the Borrower reasonably determines to be appropriate. The Borrower acknowledges that nothing in this Loan Agreement shall be deemed to relieve the Borrower of any responsibility it may have to design and construct the Project. ARTICLE IV -SPECIAL COVENANTS OF THE BORROWER Section 4.1. Federal Tax Exemption. The Borrower acknowledges that this Loan constitutes the proceeds of the Note which is intended to bear interest which is excluded from gross income of the owner thereof for federal and State income tax purposes (a "Tax-exempt Note") and may be funded by the Authority from the proceeds of the Authority's Bonds which are intended to bear interest which is excluded -from gross income of the .owner thereof for federal and State income tax purposes ("Tax-exempt Bonds"). The Borrower also acknowledges that, regardless of the source of funding, the Authority. may pledge this Loan and. the Note as security for, and as a source of, the payment of debt. service on any or all of its Tax-exempt Bonds. In consideration of these facts, the Borrower covenants and agrees with the Authority, whether or not strict compliance with such agreements is required to maintain the Note as a Tax- exempt Note or the Authority's Bonds as Tax-exempt Bonds, as follows: • (a) The Borrower will not take, or permit, any action which would cause the Note not to be aTax-exempt Note or any Authority Bonds not to be.Tax-exempt Bonds .and will not omit from taking, or cause to be taken, any action required to maintain the .Note as aTax-exempt Note or the Authority's Bonds as Tax-exempt Bonds. (b) The Borrower will take all actions necessary to comply with all instructions and requests of the Authority relating to maintaining the Authority's Bonds as Tax-exempt Bonds and the Note as aTax-exempt Note or compliance. with the agreements set forth in this section or in any certificate or agreement of the Authority relating to tax compliance (the "Authority Tax Compliance Certificate"). (c) The Borrower agrees to comply with all requirements of any certificate or agreement of the Borrower relating to tax. compliance (the "Borrower Tax Compliance Certificate"), executed and delivered in connection with the issuance of the Note. (d) The Borrower will promptly notify the Executivebirector of the Authority of any action or event in writing which adversely affects the status of the Note as aTax- exempt Note or any of the Authority's Bonds as Tax-exempt Bonds. (e) None of the proceeds of the Loan may be used to pay the costs of any facility used for any private business use or to make a private loan within the meaning of Section 141 of the Code, except as specifically permitted in writing by the Authority. • TRLF Bond Funded 1 ~ City of Richfield MPFA-O1-0083-R-FY02 August 21, 2001 (f) No Loan repayments may be made from, or secured by, property used or • to be used for a private business use or payments in respect of such property within the meaning of Section 141 of the Code, except as specifically permitted in writing by the Authority. (g) The Borrower will not establish any fund or account, other than a bona. fide debt service fund, securing the payment of the Tax-exempt Note or Tax-exempt Bonds or from which the Borrower reasonably expects to pay debt service on this Loan, or in any other respect create "gross proceeds", within the meaning of the Code, of the Tax-exempt Note or Tax-exempt Bonds, except as specifically permitted in writing by the Authority. (h) The Borrower will not. invest any moneys constituting "gross proceeds" of the Tax-exempt Note or Tax-exempt Bonds at a yield, within the meaning of the Code, in excess of the yield on the Tax-exempt Note or, if applicable, on the Tax-exempt Bonds and shall disburse all Loan proceeds. within five days of the receipt thereof by ..the Borrower consistent with the terms of the Borrower's disbursement request. (i) Except as permitted under .Volume 26, Code of Federal Regulations Section 1.150-2, the Borrower will not use Loan proceeds. to reimburse itself for any payments of project costs which the Borrower made from other funds, if the original payment was made prior to the earlier of the issuance of the Authority Bonds used to fund this Loan or the execution and delivery of the Loan Agreement and the Note or if the original payment was made from the proceeds of other debt of the Borrower. • (j) The Borrower agrees that the allocation of Loan proceeds to specific ` sources of funds, including different series of Tax-exempt Bonds, shall be at the sole discretion of the Authority and such allocation shall be binding on the Borrower. (k) With respect to any Gross Proceeds of the Tax-exempt Bonds created by the Borrower, the Borrower shall be liable to the Authority for the amount required to be rebated as excess investment earnings to the United States. (1) The Authority may, in its sole option and discretion and only upon receipt of an opinion of counsel to the Authority, waive any of the agreements set forth in this Section. .Section 4.2. Bonds Not to Be Arbitrage Bonds. The Authority will deliver on each date of issuance of the Tax-Exempt Bonds an Authority Tax Compliance .Certificate that complies with the requirements of Section 148 of the Code or any successor to such Section and that states .the .Authority's reasonable expectations as to relevant facts, estimates and circumstances relating to the use of the proceeds of the Tax-Exempt Bonds or of any moneys, securities. or other obligations on deposit to the credit of any of the funds and accounts created by the Bond Resolution or this Loan Agreement that may be deemed to be proceeds of the Bonds within the meaning of Section .148 of the Code (collectively, "Bond Proceeds"). -The Borrower recognizes that certain of the facts, estimates and circumstances required to be set forth in the Authority Tax Compliance Certificate of necessity will be based upon the representations of the Borrower. The Borrower covenants to provide, or cause to be provided, such facts and estimates 'rRLF Bond Funded 11 City of Richfield MPFA-01-0083-R-FY02 August 21, 2001 as the Authority reasonably considers necessary to enable it to execute and deliver the Authority Tax Compliance Certificate. The Borrower further covenants that (i) such facts and estimates will be based on its reasonable expectations on the date of issuance of the Bonds and will be, to the best of the knowledge of the officers of the Borrower providing such facts and estimates, true, correct and complete of that date; and (ii) the .Borrower will make reasonable inquiries to ensure such truth, correctness and completeness. The Borrower covenants that it will not make, or (to the extent that it exercises control or direction) permit to be made, any use of the Bond Proceeds that would cause the Bonds to be "arbitrage bonds" as defined in the Code. The Borrower further covenants that it will comply with those provisions of the Code that are applicable to the Bonds on the date of issuance _of-the Bonds and with those provisions of the Code that may subsequently be lawfully made applicable to the Bonds. The Authority and the Borrower shall hold and invest Bond Proceeds within their control (if such proceeds are invested) in accordance with the expectations of the Authority set forth in the Authority Tax Compliance Certificate of the Authority. If the Authority is of the opinion , upon receipt of advice. of Bond Counsel that. it is necessary to restrict or limit the yield on the investment of any Bond Proceeds in order to avoid any Bonds being considered "arbitrage bonds" within the meaning of the Code, the Authority and the Borrower shall take such action as is necessary to restrict or limit the yield on such investment, irrespective of whether the Borrower is of the same or a different opinion. Upon receipt of advice of Bond Counsel the Authority may, and upon receipt of an approving ruling from the Internal Revenue Service or a decision of a court of competent jurisdiction the Authority shall, take such action as is necessary • to remove or modify a restriction or limitation on the yield on the investment of any Bond Proceeds that was formerly deemed necessary. The Authority shall incur no liability in connection with action as contemplated herein so long as the Authority acts in good faith. The Borrower agrees that, so long as this Loan Agreement shall be in effect, the Borrower will not purchase or, to the extent it exercises control or direction, permit any related person (as defined in Section 144(a)(3) of the Code) or related party (as used in Income Tax Regulation Section 1.150-1(b)) to purchase, pursuant to any arrangement, formal or informal, Bonds in an .amount related to the amount of the loan under this Loan Agreement. Section 4.3. The Borrower to Provide Information. Whenever requested in writing by the Authority, the Borrower shall provide and certify, at the Borrower's expense, such information concerning the Project, the Borrower, its finances, users of the Project and other topics as the Authority reasonably considers necessary to enable it to keep Bondholders informed of financial and any. other matters pertaining. to the Borrower and the Project, to enable Bond Counsel to render its opinions and otherwise advise the Authority, to enable the Authority to make any reports required by law, governmental regulation or the Bond Resolution or otherwise. Section 4.4. Official Statement; Other Information. (a) The Borrower agrees to provide to the Authority such information with respect to the Borrower, its duties, operations and • functions as may be reasonably requested by the Authority, and hereby consents to the inclusion of such information in the Authority's official statement(s) used in connection with issuance and TRLF Bond Funded 12 City of Richfield MPFA-O1-0083-R-FY02 August 21, 2001 sale or the remarketing of Bonds, whether or not all or a portion of the proceeds of which will be • loaned to the Borrower. (b) At the request of the Authority, the Borrower will certify and represent that such information provided by the Borrower in such official statements does not contain any untrue statements of a material fact or omit to state a material fact necessary to make such information, in light of the circumstances under which it was given, not misleading; provided, however, that in no event shall the Borrower be required to make any representation about any other information in such official statements or as to any such official statements in their entirety. If for any reason the Borrower determines that it shall not be able to make .such certification and representation, it will provide such information as is necessary for inclusion in such official statements so as to enable it to make such certification and representation. (c) If at any time during the period ending 90 days after the date of an Authority official statement any event occurs which the Borrower believes would cause the information in such official statement to omit a material fact or make the statements therein misleading, the Borrower shall promptly notify the. Authority in writing of such information and consent to its inclusion in the official statement,. an amendment thereof or a supplement thereto. At the request. of the Authority, the Borrower will also provide the certification and representation required in (b) above with respect to such official statement as then amended or supplemented. (d) The Borrower will furnish such information, execute such instruments and • take such other action in cooperation with the underwriters of the Authority's Bonds as such underwriters may from time to time reasonably request in order (i) to qualify, and maintain the qualification of, any such for offer and sale under the Blue Sky or other securities laws and regulations of such states and other jurisdictions of-the United States as such underwriters may designate, .and (ii) to determine the eligibility of such for investment under the laws of such states and other jurisdictions. (e) The Borrower will provide such information as may be reasonably requested by any rating agency in connection with rating the Bonds of the Authority: (f) In connection with the preparation of any Official Statement for which the Authority will request information from the Borrower, the Authority will use its best efforts to give the Borrower adequate advance notice of the request to allow the. Borrower sufficient time to prepare such information and will provide the Borrower with information concerning the timing of the component parts of the financing, including the schedule for reviewing offering materials. The Borrower acknowledges that the Authority's financings may have deadlines and require prompt responses from the Borrower. The Borrower agrees to use its best efforts to meet such deadlines and to respond promptly.. (g) If the Authority determines to include Borrower information in an Official Statement by incorporation by reference, the Borrower, at the written request of the • Authority, will provide evidence of the availability of such information at the referenced TRLF Bond Funded 13 City of Richfield MPFA-O1-0083-R-FY02 August 21, 2001 location and certifications as to the accuracy, .completeness and timelines of such incorporated information. • Section 4.5. Continuing Disclosure. The Borrower agrees to provide to the Authority such information for secondary market disclosure with respect to the Project and .the Borrower, its duties, operations, functions and financial condition as may be required in the future by the Securities and Exchange Commission, or similar regulatory body. with respect to the Authority's Bonds. In the event that the Authority funds this Loan in whole or in part from, or pledges this Loan Agreement and .the Note to the payment of, Bonds and upon the written request of the Authority, the Borrower shall annually provide certain financial information and operating data in accordance with the provisions of Section (b)(5)(i) of Rule 15c2-12 (the "SEC Rule"} promulgated by the Securities and Exchange Commission (the "SEC"), as follows: (a) -financial information or operating data with respect to the Borrower of the type described in the Authority's Official Statement relating to the Bonds used to fund the Loan or to which the Loan is pledged (the "Official Statement") or, in the event no financial or operating data of the Borrower was included in an Official Statement, of the type included in the Official Statement with respect to those obligated persons who met the objective criteria and of the type used by the Borrower in connection with the public issuance of obligations similar to the Note, if any; (b) annual audited financial statements with respect to the Borrower • presenting the type of information set forth in the audited financial statements of the Borrower included in .the Official Statement, prepared in accordance with generally accepted accounting principles for governmental entities as prescribed by the Government Accounting Standards Board for governmental entities as in effect from time to time, or, if and to the extent the financial statements have not been. prepared in accordance with such generally excepted accounting principals, noting the variances therefrom and the effect thereof; and (c) any discussion by management necessary to clarify the information presented. Not later than the earlier of (i) 365 days after the end of each Fiscal Year or (ii) 30 days after such financial statements are made available to the public, commencing -with the Fiscal Year in which the Official Statement is issued, the Borrower shall provide the annual financial information and operating data described above with respect to such Fiscal Year (the "Continuing Disclosure") to the Authority and each nationally recognized municipal securities information repository ("NRMSIR") and the appropriate state information depository ("SID"), if any is hereafter created, and shall provide to the Authority a Certificate of the Borrower to the effect that the information complies with this Section and has been filed as required by this Section. Any. of the Continuing Disclosure may be included by specific reference to other .documents previously provided to each NRMSIR and to the appropriate SID, if any is hereafter • TRLF Bond Funded 14 City of Richfield MPFA-Ol-0083-R-FY02 August 2l, 2001 created, or filed with the SEC, provided that any final official statement incorporated by • reference must be available from the Municipal Securities Rulemaking Board (the "MSRB"). If on or before the date that is 365 days. after the end of each Fiscal Year, commencing with the Fiscal Year in which the Official Statement is issued, the Authority does not. receive from the Borrower a Certificate of the Borrower to the effect that the Borrower has filed the Continuing Disclosure as required by this Section, the Authority shall provide notice thereof in a timely manner to each NRMSIR or the MSRB and to the appropriate SID, if any is hereafter created. The Authority shall have no liability to any holder of Bonds for failure to provide such notice. The Authority shall notify each NRMSIR or the MSRB and theappropriate SID, if any is hereafter created, in writing in a timely manner of the occurrence of any of the following events with respect to the Bonds, if material, and shall provide the Authority. and the Authority with a copy of each such notice: (i) principal and interest payment delinquencies; (ii) non-payment related defaults; (iii) unscheduled draws on debt service reserves reflecting financial difficulties; (iv) any unscheduled draws on credit enhancement reflecting financial • difficulties; (v) substitution of any credit or liquidity providers, or their failure to perform; (vi) adverse .tax opinions or events affecting the tax-exempt status of the Bonds; (vii) modifications to rights of holders of the Bonds; (viii) .calls of the Bonds; (ix) defeasance of all or any portion of the Bonds; (x) release, substitution or sale of property securing repayment of the Bonds, and (xi) rating changes. The covenants and obligations of the Borrower specified above are made for the benefit of the Authority and the holders of the Bonds (including the beneficial owners of the Bonds) and will terminate on the date on which the Bonds are paid in full or provision for the payment thereof is made in accordance with Article IX of the Bond Resolution. • TRLF Bond Funded 15 City of Richfield MPFA-01-0083-R-FY02 August 21, 2001 The Authority and the Borrower may modify the information required to be provided by this Section, provided that such modification complies with the Rule as it exists at the time of modification and satisfies the following conditions, as applicable: (1) the .modification is made in connection with a change in circumstances that arises from a change in legal requirements, change in law or change in the identity, nature or status of the Borrower, or type of business conducted; (2) the .undertaking, as amended, would have complied .with the requirements of the Rule at the time of the primary offering, after taking into account any amendments or interpretations of the Rule,. as well as any change in circumstances; and (3) the modification does not materially adversely affect the interests of the holders of the Bonds. Any failure by the Borrower or the Authority. to perform in accordance with this Section shall not constitute an Event of Default under this Loan Agreement or the Bond Resolution and the rights and remedies provided by Article VI of this Loan Agreement upon the occurrence of an Event of Default shall not apply to any such failure. The sole and exclusive remedy for failure to comply with this Section shall be an action brought by the Authority or the holders of the Bonds to compel .specific performance by the Borrower of its undertakings set forth in this Section. • The Borrower or the Authority may from time to time disclose certain information and data in addition to the information required to be disclosed by this Loan Agreement. Notwithstanding anything. herein to the contrary, the Borrower or the Authority shall not incur any obligation to continue to provide, or to update, such additional information or data. Section 4.6. Financial Recordkeepin~. For all expenditures of funds made pursuant to this Loan Agreement, the Borrower shall keep financial accounts and records in accordance with generally. accepted accounting principles (applicable to .municipalities) including invoices, contracts, receipts, vouchers. and other documents sufficient to evidence in proper detail the nature and propriety of the expenditures. Such accounts and records shall be accessible and available for examination to authorized representatives of: the Authority, DTED, the Department of Transportation, .the United States Department of Transportation, the Federal Highway Administration, the Legislative Auditor of the State, and the Office of the State Auditor of the State. Accounts and records related to .the funds provided under this agreement shall be disclosed and be accessible, unless privileged and not otherwise required to be disclosed and accessible under (Minnesota Statute) Section 16B.06, subd. 4 or any other state law, to the extent permitted by law, to .authorized .representatives of the Authority, the State, DTED, the Department of Transportation, the Legislative Auditor of the. State, and the Office of the State Auditor of the State, for purposes of examination and audit. All accounts and records required to be maintained and provided pursuant to this section shall be prepared in accordance with generally accepted governmental accounting principles. TRLF Bond Funded 16 City of Richfield MPFA-01-0083-R-FY02 August 21, 2001 Section 4.7. Annual Audit Requirements. {a) The Borrower shall provide the • Authority with acceptable independent annual audits for the term of the Loan. All audits must be submitted within 30 days after the completion of the audit but no dater than one year after the end of the audit period. (b) The Borrower shall list the Note under general obligation debt of the Borrower in its official records and statements. The Borrower specifically agrees that the Note shall be listed under general obligation debt of the Borrower in its annual audits for the term of this Loan. Section 4.8. Exercise of Remedies. Upon notification from the Department of Transportation to the Authority that there has been a violation by the Borrower of Department of Transportation statutes, rules, regulations, reporting requirement, approvals, certifications, or permit requirements, as amended or supplemented from time to time, or if the Authority determines that the Borrower is in default with any section of this Loan Agreement, .the Authority may exercise any remedies available at law or in equity. Section 4.9. Miscellaneous. The Borrower hereby certifies that its Minnesota and federal tax identification numbers are as follows: Minnesota Tax ID 8024817 Federal Employer ID 41-6005490 ARTICLE V -MISCELLANEOUS • Section 5.1. Covenants for Benefit of Holders. In the event that the Authority funds all or a portion of this Loan from the proceeds of Bonds or pledges this Loan Agreement and the Note to the payment of Bonds, this Loan Agreement is executed in part to induce the purchase by others of the Bonds, and accordingly, all covenants and agreements on the part of the Borrower and the Authority set forth in this Loan Agreement will then be for the benefit of the Holders from time to time of the Bonds. This Loan Agreement, the Note, and any property and funds held by the Authority pursuant to this Loan Agreement, the Note and the Bond Resolution, will then be held for the benefit of the holders of the Bonds .and shall then not be available to satisfy claims of holders of other issues of the Authority's bonds or of any other creditors of the Authority, including (without limitation) any judgment creditors or any secured or other lien creditors, whether such claims now exist or hereafter come into existence. Nothing in this Section shall be construed to give any Bondholder any rights to enforce any provisions hereof or to exercise any remedies herein provided. Section 5.2. Compliance with Bond Resolution. The Borrower recognizes that the Bond Resolution may contain provisions that relate to matters affecting the payment of Costs of .the Project and the administration and investment of certain funds. The Borrower shall take such action not inconsistent with the provisions of this Loan Agreement as may be necessary in order to enable the Authority to comply with all requirements and to fulfill all covenants of the Bond Resolution to the extent that compliance with such requirements and fulfillment of such covenants are dependent upon any observance or performance required of the Borrower by this Loan Agreement. TRLF Bond Funded 17 City of Richfield MPFA-O1-0083-R-FY02 August 21, 2001 Section 5.3. Actions of The Borrower and the Authority. The Borrower agrees that all actions heretofore or hereafter taken by it and all. actions hereafter taken by the Authority to • carry out the Project upon the recommendation or request of any officer of the Borrower have been and will be in full compliance with this Loan Agreement.. The Borrower acknowledges that any review of any such actions heretofore or hereafter made by the Authority's staff or Bond Counsel has been or will be solely for the protection of the Authority. Neither such review nor any action taken by the Authority to carry out the Project shall stop or otherwise preclude the Authority from enforcing this Loan Agreement or the Note. Section 5.4. Authority's Liability Limited. (a) Neither the execution and delivery of this Loan Agreement by the Authority nor the carrying out of the Project by the Borrower shall impose any personal liability on the members, officers, employees or agents of the Authority. No recourse shall be had by the Borrower for any claims based on the .Bond Resolution or this Loan Agreement against any member, officer, employee or other agent of the Authority in his individual capacity, all such liability, if any, expressly waived by the Borrower by the acceptance of this Loan Agreement. (b) In the exercise of the rights, remedies, powers and privileges of the Authority under .the Bond Resolution or this Loan Agreement, including (without limitation) the application of moneys, the investment of funds and the disposition of any collateral in the Event of Default by the Borrower, the Authority shall not be accountable to the Borrower for any action taken or omitted by it or its members, officers, employees and agents in good faith .and believed by it or them to be authorized or within the discretion or rights, remedies, powers and privileges conferred (other than willful. . misconduct in the misapplication of funds). The Authority. and its members, officers, ' employees and agents shall be protected in its or their acting upon any paper or document believed by it or them to be genuine, and it or they may conclusively rely upon the advice of counsel as to matters of law and may (but need not) require further evidence of any fact or matter before taking any action. (c) The Borrower shall indemnify and hold harmless the Authority and all members, officers, employees or other agents of the Authority, acting in their capacity as members, officers, employees or agents (collectively, the "Indemnified Parties") against all losses, costs, damages, expenses and liabilities (collectively, "Losses") of whatsoever nature (including, without limitation, reasonable attorney's fees, litigation and court costs, amounts paid in :settlement and amounts paid to discharge judgments) directly or indirectly resulting from, arising out of or relating to one or-more claims, lawsuits, causes of action and other legal proceedings of whatsoever nature, including (without limitation) any of the foregoing that involves bodily or personal injury or death or property damage brought by or against any Indemnified Party or to which any Indemnified Party is a party, as such claim directly or indirectly results from or arises out of (i) the design, construction, transfer, sale, operation, use, maintenance or ownership of the Project or (ii) the execution, delivery or performance of this Loan Agreement or any related instruments or documents ("Claims"). The obligations of the Borrower under this Section shall survive. termination of this Loan Agreement, whether such Losses or Claims are asserted prior to or after termination of this Loan Agreement. • TRLF Bond Funded 18 City of Richfield MPFA-O1-0083-R-FY02 August 21, 2001 Section 5.5. Notice. All notices required to be given or authorized to be given pursuant to this Loan Agreement shall be in writing and shall be deemed to have been given • when received at (provided any notice sent by telegram, cable, telex or facsimile transmission is sent charges prepaid and confirmed by letter mailed as follows), or five Business Days after being sent by registered or certified mail, postage prepaid, addressed to: In the case of the Authority: Minnesota Public Facilities Authority 500 Metro Square 121 Seventh Place East St. Paul, IvIN 55101-2146 Attention: Executive Director In the case of the Borrower: City Manager City of Richfield 6700 Portland Avenue Richfield, MN 55423-2560 or to such other address as any of such parties shall specify by Notice given hereunder. Section 5.6. Rights and Remedies of -Authority. All rights and remedies given. or • granted to the Authority in this Loan Agreement are cumulative, nonexclusive and in addition to any and all rights and remedies that the Authority may have or be given by reason of any law, statute, ordinance or otherwise. Section 5.7. Amendment of Loan Agreement. This Loan Agreement may be amended by the parties hereto pursuant to a written supplemental loan agreement, executed by the parties hereto. The Borrower acknowledges that the Authority may limit its ability to amend this Loan Agreement in the Bond Resolution and thus no obligation is placed upon the Authority to enter into any amendment. Section 5.8. .Counterparts.. This Loan Agreement may be executed in any number of counterparts, each of which, when so executed and delivered, shall be an original; but such counterparts together. shall constitute but one and the same Loan Agreement. Section 5.9. Severability. If any clause, provision or section. of this Loan Agreement is held illegal or invalid by any court, the invalidity or such clause, provision or section shall not affect any of the remaining clauses, provisions or sections hereof, and this Loan Agreement shall be construed and enforced as if such illegal or invalid clause, provision or section had not been contained herein. In case any agreement or obligation contained in this Loan Agreement is held to be in violation of law, such agreement or obligation shall nevertheless be determined to be the agreement or obligation of the Authority or the Borrower, as the case may be, to the full extent permitted by law. • TRLF Bond Funded 19 City of Richfield MPFA-01-0083-R-FY02 August 21, 2001 Section 5.10. Assignment. Thee Authority may .assign all or a portion of .its rights, powers, duties and obligations under this Loan Agreement to any governmental entity that has • succeeded to the rights and powers of the Authority under this. Loan Agreement. Neither this. Loan Agreement nor the Note may be assigned by the Borrower for any reason without the prior written consent of the Authority. Section 5.11. Minnesota Law.. This Loan Agreement is executed and delivered with the intent that the laws of the State, except for principles of conflict of laws (including, without limitation, the Act) shall govern. Section 5.12. Fee. The Borrower acknowledges that the Authority may apply up to 2% of any loan repayment to payment of its administrative costs and that such application shall not increase the amount of any repayments or extend the period of repayment. Section 5.13. Termination of Loan. The obligations of the Borrower under this Loan Agreement (except the obligations set forth in Sections 2.2(b), 2.2(f), 3.3, 4.3, 4.4 and 4.5 hereof) shall terminate (i) when the Loan is fully paid and retired, (ii) in the event that the first disbursement has notbeen made within 365 days after the date of this Loan Agreement, or (iii) in the event the Borrower determines to not draw any Loan. Proceeds prior to the first disbursement and so notifies the Authority pursuant to Section 3.3(e) of this Loan Agreement. Section 5.14. No Waiver of Rights. No failure or delay by the Authority in exercising any right, remedy, power or privilege hereunder or under the Note or any single or partial exercise thereof nor the exercise of any other right, remedy, power or privilege shall operate as a • waiver hereof or thereof. No failure or delay by the Authority in exercising any right, remedy, power or privilege under or in respect of the Bonds, the Bond Resolution, the Note or this Loan Agreement shall affect the rights, remedies, powers or privileges of the Authority or the Authority hereunder or shall .operate as a waiver thereof. The rights, remedies, powers and privileges of the Authority and the Authority hereunder are. cumulative and not exclusive of any other rights, remedies, powers or privileges now or hereafter existing at law or in equity. Section 5.15. Waiver of Default. In the event that any agreement contained herein shall be breached by either party and such breach shall thereafter be waived by the other party,. such waiver shall be limited to the particular breach so waived and shall not be deemed to waive anyother breach hereunder. TRLF Bond Funded 2Q City of Richfield MPFA-Ol-0083-R-FY02 August 21, 2001 IN WITNESS WHEREOF, the Authority and the Borrower acknowledge their assent to • this agreement and agree to be bound by its terms through their signatures entered below. ENCUMBERED STATE OF MINNESOTA by and through the Public Facilities Authority Department of Trade and Development Economic By: e~._ ~3, Rebecca Yanisch By: Title: Chair, Public Facilities Authority Date Encumbered Date: ~~`11~0 1 [Individual signing certifies that funds have been encumbered as required by Minnesota Statutes Chapter 16AJ RICHFIELD, MINNESOTA APPROVED AS TO FORM AND EXECUTION By: Martin Kirsch Attorney General's Office Title: Mayor, City of Richfield By. Date: By: Samantha Orduno Title: • Title: Richfield Cit Mana er Date: Date; TRLF Bond Funded 21 City of Richfield MPFA-Ol-0083-R-FY02 August 21, 2001 EXHIBIT A • LOAN REPAYMENT SCHEDULE Principal on the Note shall mature on August 20 of the years and in the principal installments as set forth on the attached Schedule. • TRLF Bond Funded City of Richfield MFPA-O1-0083-R-FY02 August 21, 2001 A-1 Exhibit A _ Minnesota Public Facilities Authority Transportation Revolving Loan Fund Richfield, City of Funding Source Reference Amount ~PFA-01-0083-R-FY01 Bonds 2001A 6,700,000.00 Binding Commit. Loan Date Accrual Date immediate Interest Rate 1.84% 6,700,000.00 Date Effective Disbursement ref Repayment .Interest Principal Loan Balance Cal yr. D.S. projected 09/27/01 6,700,000.00 6,700,000.00 02/20/02 48,969.55 48,969.55 6,700,000.00 08/20/02 61,640.00 61,640.00 - 6,700,000.00 110,609.55 02/20/03 61,640.00 61,640.00 6,700,000.00 08/20/03 61,640.00 61,640.00 - 6,700,000.00 123,280.00 02/20/04 61,640.00 61,640.00 6,700,000.00 08/20/04 81,640.00 61,640.00 20,000.00 6,680,000.00 143,280.00 02/20/05 61,456.00 61,456.00 6,680,000.00 08/20/05 4,741,456.00 61,45.6.00 4,680,000.00 2,000,000.00 4,802,912.00 02/20/06 18,400.00 18,400.00 2,000,000.00 08/20/06 2,018,400.00 18,400.00 2,000,000.00 - 2,036,800.00 Totals 6,700,000.00 7,216,881.55 516,881.55 6,700,000.00 7,216,881.55. weighted avg maturity based on an assumed issue date of: 09/27/01 weighted average maturity: 4.19 • , DTED Fiscal Services 08/21/01' tr Richfield.xls • THE PROJECT • Construction of the Penn Avenue/I-494 Interchange in Richfield, Minnesota TRLF Bond Funded B_ I EXHIBIT B City of Richfield MPFA-01-0083-R-FY02 August 21, 2001 • STAFF REPORT Other Business 11 235 AGENDA SECTION AGENDA ITEM # REPORT # CITY COUNCIL MEETING SEPTEMBER 10, 2001 REPORT PREPARED BY: REPORT PRESENTER: TOM FOLEY, TRANSPORTATION ENGINEER NAn~ TITLE MIKE EASTLING, PUBLIC WORKS DIRECTOR NAME', TITLE • DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of the Minnesota Department of Transportation Cooperative Construction Agreement #82204 which provides the City of Richfield with MnDOT Trunk Highway funds for the Penn Bridge Project. I. RECOMMENDED ACTION: By Motion: Approve the attached resolution authorizing Cooperative Construction Agreement 82204 which allows for the Minnesota Department of Transportation to reimburse the City of Richfield for its Transportation Revolving Loan funds, provides $147,000 in Trunk Highway money, and provides construction engineering services for construction of the Penn Bridge over I-494 Project. r: III. BACKGROUND ~ A Cooperative Construction Agreement between the City and the Minnesota Department of Transportation (MnDOT) is needed to identify the funds and services provided by the Minnesota Department of Transportation on the Penn Avenue Bridge Project. MnDOT has agreed to provide $6,700,000 in funds to partially fund construction of the Penn Avenue Bridge Project. The State and the City have already agreed that 0910MnDOT Agreement the state funds will not become available until 2005 and 2006. In the meantime the City will borrow monies from the Minnesota Transportation. Revolving Loan Fund (TREE) until MnDOT repays the City for $6,700,000 in construction costs. In the proposed Agreement the Minnesota Department of Transportation also is providing $147,000 in state trunk highway funds to modify the 78th Street frontage road west of Penn Avenue and is contributing in-kind staff servicesvalued at about $1.5 million to perform the construction administration of the Penn Avenue Bridge Project. III. BASIS OF RECOMMENDATION A. POLICY • The Penn Avenue Bridge over I-494 Project is identified in the City's 2001 Capital Improvement Budget. • The Cooperative Construction Agreement is consistent with the Memorandum of Understanding between MnDOT and the City for funding the Penn Avenue Bridge Project. • The Cooperative Construction. Agreement is consistent with the terms for reimbursing the City for its. loan under the Transportation Revolving Loan Fund Program administered by the Minnesota Public Facilities Authority. B. CRITICAL ISSUES • The proposed agreement describes MnDOT's financial and technical assistance needed to build the Penn Avenue Bridge Project. . C. FINANCIAL • The proposed agreement provides the City with reimbursement of the $6,700,000 principal needed in a timely manner to repay the TRLF loan in full by 2006. The proposed agreement provides $147,000~in state trunk highway funds for improvements to the 78th Street frontage road west of Penn Avenue. D. LEGAL • The City attorney will be available to answer any questions on the agreement. ~ 1 V . ALTERNATIVE KECOMMENDATION(S) ~ • None. I V . ATTACHMENTS I Resolution. authorizing the Mayor and City Manager to execute Minnesota Department of Transportation Cooperative Construction Agreement No. 82204 for the Penn -Avenue Bridge- project. MnDOT Cooperative Construction Agreement No. 82204. ~ VI. PRINCIPAL PARTIES EXPECTED AT MEETING ~ • None a RESOLUTION NO. • RESOLUTION AUTHORIZING MAYOR AND CITY MANAGER TO EXECUTE MINNESOTA DEPARTMENT OF TRANSPORTATION (MnDOT) AGENCY AGREEMENT NO. 82204 FOR THE MINNESOTA DEPARTMENT OF TRANSPORTATION TO REIMBURSE THE CITY OF RICHFIELD FOR ITS TRANSPORTATION REVOLVING;LOAN FUNDS IN CONNECTION WITH THE PENN BRIDGE OVER f-494 PROJECT CITY PROJECT NO. 401-30-521 S.P. 2785-328, 2785-329, S.A.P. 27-632-22 AND S.A.P. 157-020-20 FED. PROD. NO. HPP MN 10.(102) IT IS RESOLVED that the City of Richfield enter into MnDOT Agreement No. 82204 with the State of Minnesota, Department of Transportation for the following purposes: To provide for a lump sum payment and deferred lump sum payments by the State to the City of the State's share of the costs of the grade, surface, drainage, signing, lighting, signals and bridge construction and other associated construction to be performed upon, along and adjacent to the Trunk Highway No. 494 and Penn Avenue South interchange under State Project No. 2785-328 (T.H. 494+393) et-al. NOW, THEREFORE, BE IT FURTHER. RESOLVED, the Mayor and City- Manager are hereby authorized and directed for and on behalf of the. City of Richfield to execute and enter into an agreement with the Commissioner of Transportation prescribing.-the terms and conditions as set forth and contained in "Minnesota Department of Transportation Agency Agreement No. 82204," a copy of which said agreement was before the City Council and which is made a part hereof by reference. Adopted by the City Council of the City of Richfield, Minnesota this 10th day of September 2001. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk • PRE-LETTING STATE OF MINNESOTA Mn/DOT SERVICES DEPARTMENT OF TRANSPORTATION AGREEMENT NO. SECTION COOPERATIVE CONSTRUCTION AGREEMENT 82204 S.P. 2785-328 (T.H. 494=393) S.P. 2785-329 (T.H. 494=393) S.A.P. 27-632-22 S.A.P. 157-020-20 Fed. Proj. No. HPP MN 10(102) The State of Minnesota AMOUNTS ENCUMBERED Department of Transportation, and The City of Richfield X147.000.00 (FY 02) Re: State lump sum payment for grade, surface, drainage, sign, 54,700,000.00 (FY 06) .light, signals and bridge construction by the City on T.H. 494 at Penn Ave.. 52.000,000.00 lFY -07) AMOUNT RECEIVABLE (None) THLS AGREEMENT is made and entered .into by and between the State of Minnesota, Department of Transportation, hereinafter referred to as the."State" and the City of Richfield, Minnesota, acting by and through its City Council, hereinafter re ferred to as the "City": 1 82204 WHEREAS. the City is about to perform grading, paving, drainage, signing, lighting, signals and-bride construction and other associated construction upon, along and adjacent to Trunk Highway No. 494 from Engineer Station 562+56.87 (Upton Avenue South) to Engineer Station 589+69.32 (Morgan Avenue South) and upon, along and adjacent to Penn Avenue South from 300-feet north. of 80th Street to 160 feet north of 77th Street in accordance with City-prepared plans, specifications and/or special provisions designated as State Projects" No. 2785-328 (T.H. 494=393), No. 2785-329 (T.H.-494=393),. No. 27-632-22, No. 157-020-20, as City of Richfield Project No. CP401-30-521, as Hennepin County Project No. 0021, as City of Bloomington Work Request No. 721, and in the records of the Federal Highway Administration as Federal Project No. HPP MN 10(102); and, WHEREAS the State has agreed and is willing to participate in the costs of construction to be performed under State Projects No. 2785-328 (T.H. 494=393) and No. 2785.-329 in lump sum amounts as hereinafter set forth; and WHEREAS the State and the City have agreed that the State payments totaling $6,700,000.00 be delayed until such time that the funds are- legislatively appropriated and encumbered, which is anticipated to be fiscal years 2006-and 2007 appropriations; and WHEREAS although the State is willing to participate in the costs as agreed, payments .for the fiscal years of 2006 and 2007 can only be made after the Commissioner of Transportation approves the program of which the agreed to participation is a part, and only after funds for said participation have been encumbered, which encumbrance must be preceded by the appropriation of such funds by the Minnesota Legislature; and WHEREAS the State will perform all necessary construction engineering, field inspection and engineering supervision for the construction project at no cost or expense to the City; and 2 82204 WHEREAS the traffic control signal systems maintenance is covered under a separate agreement between the State and City; and WHEREAS Minnesota Statutes Section 161.20, subdivision 2 authorizes the Commissioner of Transportation to make arrangements with and cooperate with any governmental authority for the purposes of constructing, maintaining and improving the trunk highway. system. IT IS, THEREFORE, MUTUALLY AGREED AS FOLLOWS: ARTICLE I - CONSTRUCTION BY THE CITY Section A. Contract Award and .Construction The City shall receive bids and award a construction contract to the lowest responsible bidder, subject to .concurrence by the State in that award, in accordance with State-approved plans, specifications and/or special provisions designated as State Project No. 2785-328 (T.H: 494=393) et al. The contract construction shall be performed in accordance with State-approved City plans, specifications and/or special provisions which are on file in the office of the City's. Engineer, and are made a part hereof by reference with the same force and effect as though fully set forth herein. Section B. Documents to be Furnished to the State The City shall, within 7 days of opening bids for the construction contract, submit to the State's Metropolitan Division Engineer at Roseville a copy of the low bid and an abstract of all bids together- with the City's request for concurrence by the State-in the award of the construction contract. The City shall not award the construction contract until the State advises the City in writing of its concurrence therein. Section C. Cancellation of Agreement Each party to this Agreement reserves the right to withdraw from and 3 • 82204 cancel this Agreement within 30 days. after the opening of bids `if either party determines any or all bids to be unsatisfactory. Withdrawal from or cancellation of the Agreement to be accomplished by either party serving a written notice thereof upon the other. .Section D. Direction of Construction The contract construction shall be under the direction of the City. The City shall .utilize the services of a registered professional- . engineer, to be furnished by-the State as provided in Article II of this Agreement. The City shall-give the State's Division Engineer five days notice. of its intention-to start the contract construction. Section E. Inspection by the City The construction covered under this contract. is open to inspection by the City. If the City believes that construction under this contract is not being performed properly or that it is defective, the City • will inform its contractor and the State's furnished engineer of ` those defects . The City shall then .perform all functions necessary to cause the defects to be corrected in a satisfactory manner. Section F. Completion of Construction The City shall cause the contract construction to be started and completed-in accordance with the time schedule in the construction contract special provisions. The completion date for the contract construction may be extended,` by an exchange of letters between the appropriate City official and the State Division Engineer's authorized representative, for unavoidable delays encountered in the performance thereof. Section G. Additional Construction Plan Changes Etc The State shall not participate in the cost of any contract construction that is in addition to the State .cost participation construction. covered under this Agreement unless the necessary State funds. have been encumbered. prior to the performance of the additional 4 82204 contract construction and the terms and conditions in the following paragraph have been met. All changes in the plans, specifications and/or special provisions for the. contract construction and all addenda, change orders and/or supplemental agreements entered into by the .City and its contractor for contract construction must be'approved in writing by the State District Engineer's authorized representative. Section H. Compliance. with Laws, Ordinances and Regulations The City shall, in .connection with the award and administration of the construction contract and the performance of the contract " construction, comply and cause its contractor to comply with all Federal, State and Local laws, including Minnesota Statutes Section 16B.101(1996) and all applicable ordinances and regulations. • Section I. Right-of-Wax, Easements and Permits The City shall, without cost or expense to the State, obtain all rights-of-way, easements., construction permits and/or any other permits and sanctions that may be required in connection with the contract construction. Prior to advance payment.. by the State, the City shall furnish the State with certified copies of the documents for those rights-of-way-and easements, and certified copies of those construction permits .and/or other permits and sanctions requiredfor- State cost participation construction covered under this Agreement. Upon the City's receipt of a fully executed copy.. of this Agreement, the .City shall submit to the. State's Utility Engineer an original permit application .for all City-owned utilities to be constructed hereunder that are upon and within the trunk highway right-of-way. Applications for permits shall. be made on State-form "Application For Utility Permit On Trunk Highway Right-Of-Way" (Form TP2525). 5 • 82204 ARTICLE II - CONSTRUCTION ENGINEERING Section A State Furnished Engineering Services The State shall furnish a registered-professional engineer for the construction engineering to be performed in connection with the. contract construction, said engineer shall actively supervise and direct the construction engineering, inspection, testing and associated documentation for the contract construction without cost or expense to the City. The State shall also furnish .all needed personnel, services, supplies and equipment necessary to carry out and complete the construction engineering responsibilities without cost or expense to the City. The contract construction shall be performed in accordance with the plans, specifications and special provisions. The materials control for the contract construction shall be carried out in accordance with Specifications No. 1601 through and including No. 1609 as set forth • in the State's current "Standard Specifications for Construction". Section B. Acceptance of Construction Throughout construction, if the State considers any contract construction to be unsatisfactory, they may .advise the City not to accept the unsatisfactory construction. Upon advising the City, the State shall identify the specific defects in the construction and the reasons why the construction should not be accepted.-.Such advice by the State shall not be binding upon the City and the City shall have the right to determine whether to accept or reject the contract construction. Section C Partial and Final Estimates of Construction At regular intervals throughout the contract construction the State shall prepare partial estimates and a final estimate of contract construction costs in accordance with the terms of the construction. • contract and submit them to-the City.. Quantities listed on the 6 • 82204 estimates shall be documented in accordance with the guide lines set forth in the applicable documentation manual. ARTICLE III - PAYMENT BY THE STATE The State shall advance to the City, as the State's full and. complete share of the costs of the construction to be performed upon, along and adjacent to Trunk Highway No. 494 and Penn Avenue South under State Project No. 2785-328 (T.H. 494=393) et-al, a lump sum in the amount of $6,847,000.00. After the following conditions have been met, the State shall advance to the City as agreed, payments of. $147,000.00 for work under State" Project No. 2785-329 (T.H. 494=393) after the execution and approval of this Agreement :and transmittal of same to the City, and payments. of, $4,700,000.00 on or before July 1, 20.05 and. $2,000,000.00 on or • before July 1, 2006.. A. State Legislative appropriation of funds for the State's cost share payment, for each fiscal year. B. The required encumbrances by the State of the State's cost share. C. Receipt. by the State from the City of certified documentation for all of the State's right-of-way and easement acquisition required. for the contract construction, the approval of that documentation by the State's Land Management Director at St. Paul. D. Execution and approval of this Agreement and the State's transmittal of same to the City. If execution and approval of this Agreement does not constitute concurrence by the State in the award of the construction contract, a letter advising the City of the State's concurrence in the award of the construction.. • contract shall accompany the City's copy of this Agreement. 7 • 82204 E. Receipt by the State of a written request from the City for the advancement of funds for the agreed to payments. The request shall include certification by the City that. the construction contract has been executed by all necessary parties. ARTICLE IV - CONSTRUCTION DOCUMENTS FURNISHED BY THE CITY The City shall keep records and accounts that enable it to provide the State, when requested, with the following: A. Copies of the City contractor's invoice(s) covering all contract construction. B. Copies of the. endorsed and canceled City warrant(s) or check(s) paying for all .contract construction, or computer documentation of the warrant(s) issued, certified by an appropriate City official that all construction contract .payments has been made. • C. Copies of all construction contract change orders and/or supplemental agreements. D. Copies, of certified material sampling reports and of material testing results for the materials furnished for the contract construction. E. A copy of the "as built" plan sent to the State's Division Engineer. ARTICLE V - GENERAL PROVISIONS Section A. Replacement of Castings The City shall furnish its contractor with new castings and/or parts for all inplace City-owned facilities constructed hereunder when replacements are required, without cost or expense to the State. • 8 • Section B. Maintenance by the City 82204 Upon satisfactory completion of the Penn Avenue South roadway construction to be performed within the corporate City limits under the construction contract, the City shall provide for the proper maintenance of said roadway(s) and all of the facilities a part thereof, without cost or expense to the State. Maintenance shall include, but not be limited to, snow, .ice and debris removal, resurfacing and/or seal coating and any other maintenance activities necessary to perpetuate the roadway(s) in a safe and usable condition. Upon satisfactory completion of the storm sewer facilities outside of the T.H. No. 494 right-of-way, and City-owned facilities construction to be performed within the corporate City limits under the construction contract, the City is to provide the proper maintenance of those facilities, without cost or expense to the State. L~ Upon satisfactory completion of the pedestrian walkways construction to be performed within the corporate City limits under the construction contract, the City shall provide for the proper maintenance of the walkways, without cost or expense to the State. Maintenance shall include, but not be limited to, snow, ice and debris removal and any other maintenance activities necessary to perpetuate the walkways in a safe and usable condition. Upon satisfactory completion of the West 78th Street and Penn Avenue South lighting facilities construction to be performed within the corporate City limits .under the .construction contract, the City shall provide .for the proper maintenance of and keep in repair those facilities, without cost or expense to the State.. The City shall also provide the necessary electrical energy for their operation, without cost or expense to the State. • 9 82204 • Section C Additional Drainage Neither party to this Agreement shall drain any additional drainage into the storm sewer facilities to be-constructed under the construction contract, that was not included in the drainage area for which the storm sewer. facilities were designed, without first obtaining permission to do so from the other .party. The drainage areas served by the facilities constructed under the construction contract are shown in a drainage area map, EXHIBIT "Drainage Area", which is on file in the office of the State's District Hydraulics Engineer at Roseville and is .made a part hereof by reference with the same force and effect as though. fully set forth herein. Section D Future Responsibilities Upon satisfactory completion of the West 78th Street construction to be performed within the corporate City limits under the construction contract, the City shall thereafter accept full and total • responsibility and all obligations and liabilities arising out of or by reason of the use, operation, maintenance, repair and/or reconstruction of and .all of the facilities a part thereof constructed .hereunder, without. cost or expense to the State. Section E Release and Conveyance of Roadwavs The State shall, upon satisfactory completion of the .West. 78th Street construction and all of the facilities a part thereof .constructed within the corporate City limits under the construction contract, _ serve upon the City a "Notice of Release" placing that roadway portion and all the existing portion of West 78th Street westerly to York Avenue South under the jurisdiction of the City; and subsequent thereto, after all necessary and required documents have been prepared and processed, the State shall convey to the City all right, title and interest of the State in that roadway portion.. Upon receiptof that "Notice of Release", the City shall become the road authority responsible for the roadway portion so released. i to 82204 • Section F. Examination of Books Records, Etc. As provided by Minnesota Statutes Section 16C.05, subdivision 5,_ the books, records, documents, and accounting procedures and practices of the State and the City relevant to this Agreement are subject to examination by the State and the .City, and either the legislative auditor or the state auditor as appropriate, for a minimum of six years fromfinal payment. Section G. Claims Each party is responsible for its own employees for any claims arising under the Workers Compensation Act. Each party is responsible for its own .acts, omissions-and the results thereof to the extent authorized by law and will not be responsible for the acts and omissions of others and the results thereof. Liability of-the State ,is governed by Minnesota Statutes Section 3.736 and other applicable law. Liability of the City is governed by Minnesota'. • Statutes chapter 466. and other applicable law. Section H Nondiscrimination The provisions of Minnesota Statutes Section 181.59 and of any applicable law relating to civil rights and discrimination shall be considered part of this Agreement as if fully set forth herein. Section I Agreement Approval Before this Agreement shall become binding and effective, it shall be approved by a City Council resolution and receive approval of State and City officers as the law may provide in addition o the Commissioner of Transportation or his authorized representative. ARTICLE VI - AUTHORIZED AGENTS The State's Authorized Agent for the purpose of the administration of this .Agreement is.Maryanne Kelly-Sonnek, Municipal Agreements • Engineer, or her successor. Her current address and phone number are 11 82204 • land Boulevard Mailstop 682, St. Paul, Minnesota ..55155, 395 John Ire , (651) 296-0969. The City's Authorized Agent for the purpose of the administration of this Agreement is Thomas Foley, Agreements, or his successor. His current address and phone number are 6.700 Portland Avenue, Richfield, Minnesota 55423, (612) 861-9791. • 12 82204 IN TESTIMONY WHEREOF the parties have executed this Agreement by their authorized officers. STATE ENCUMBRANCE VERIFICATION DEPARTMENT OF TRANSPORTATION Individual certifies that funds have been encumbered Recommended for approval: as required by Minn. Stat. ~3' 16A.15 and 16C.05. By By District Engineer APProved: _.. -Date By State Design Engineer MAPS Encumbrance No. Date CITY OF RICHFIELD COMMISSIONER OF ADMINISTRATION As delegated to Materials Management Division By Mayor By ate Date By OFFICE OF THE ATTORNEY GENERAL Approved as to form and execution: Title By Date Date 00000000000000000000000000000000000000000000000 This Agreement was acknowledged before me this day of 2001, by and , (Name) (Name) the Mayor and of the City of Richfield.. (Title) •a--- .. Notary Public ~°''p+a. ~~~,~`~ ~ ~y ~~ ~' My Commission Expires ~°s 13 MK~~ AGENDA SECTION: Resolutions AGENDA ITEM # I ~ REPORT # 234 ~~ STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 10, 2001 REPORT PREPARED BY: NAME, TITLE REPORT PRESENTER: NAME, TITLE • DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: BETSY CxRISTENSEN, SUPPORT SERVICES DIVISION MANAGER DAN SCOTT, DIRECTOR OF PUBLIC SAFETY i ~-. SIGNATURE ITEM FOR COUNCIL CONSIDERATION: Council consideration of a disciplinary hearing and resolution regarding civil enforcement for alcohol establishments in Richfield that recently underwent alcohol compliance checks, conducted b Richfield Public Safet staff, and failed b sellin alcohol to undera a outh. I. RECOMMENDED ACTION: By Motion: Approve the resolution suspending the license to sell alcohol for two consecutive days for each of the first time violating establishments; levying a fine against each establishment in the amount of $500 for the first violation; requiring a mandatory meeting with the Public Safety Director to present their individual establishment plans to ensure eliminating any future actions of this kind; and attending an alcohol sales and awareness program presented by the Crime Prevention staff. Approve the resolution suspending the license to sell alcohol for five consecutive days for each of the second time violating establishments; levying a fine against each establishment in the amount of $1500 for the second violation; proposing that the Public Safety Director select the five consecutive days their licenses will be 0910LiquorComplianceViolators suspended; and requiring a second meeting with the Public Safety Director; and conducting a mandatory alcohol and sales awareness training session with all of their employees, provided by either a private firm approved by Public Safety officials, or by Public Safety staff, with all costs to be paid by the establishment. Approve the resolution suspending the license to sell alcohol for ten consecutive days for. each of the third time violating establishments; levying a fine against each establishment in the amount of $1750 for the third violation; and proposing that the Public Safety Director select the ten consecutive days their licenses will be suspended. Approve the resolution. recommending revocation of the fourth time violating establishment's license to sell alcohol on a permanent basis; and. levying a fine of $2000 for the fourth violation. II. BACKGROUND On July 14, 16, and 23, 2001, Richfield Public Safety staff conducted alcohol compliance checks at all of .Richfield's alcohol establishments, assisted by three underage youth that were 18-19 years of age. These compliance checks were the first round of checks conducted in 2001. On July 14, 16, and 23, 2001, the police division made arrangements for the minors to enter the establishments with undercover police officers. fn nine. instances, the underage youth were successful in being served alcohol The businesses that made sales to underage youth on July 14, 2001 are as follows: • Asian Direct Oriental - 607 East 77th Street • Davanni's - 2312 West 66th Street • EI Jalapeno Market - 1430 East 66th Street • Food NFuel - 6300 Lyndale Avenue North NOTE: As of October 30, 2001, Food N Fuel's name has been changed to Oasis Market. • Kenny's Market - 6708 Penn Avenue South • Khans Mongolian Barbecue - 500 East 78th .Street • Kinhdo - 6345 Penn Avenue South • 12th Avenue Phillips 66 - 7744 12th Avenue South This is a -first offense for Asian Direct Oriental, Davanni's, Oasis Market (Food N Fuel), and Kinhdo. • This is a second offense for EI Jalapeno Market and Khans Mongolian Barbecue. They were previously fined $500 and received atwo-day suspension of their license as a result of selling alcohol to a minor. This is a third offense for Kenny's Market. They were previously fined $500 and received atwo-day suspension of their license for their first offense. For their • second offense, they were fined $1500 and received afive-day suspension of their license. This is a fourth offense for 12th Avenue Phillips 66. They were previously fined $500 and received atwo-day suspension of their license for their first offense. For their second offense, they were fined $1500 and received afive-day suspension of their license.. For their third offense, they were fined $1750 and received aten-day suspension of their license. On July 16, 2001, Richfield Public Safety staff conducted additional alcohol compliance checks. They were assisted by three underage youth who were 18-19 years of age. Again, the police division made arrangements for the minors to enter the establishments with an undercover police officer. In one instance, the youth was successful in being served alcohol The business that made a sale to an underage youth on July 16, 2001 is as follows: • Houlihan's - 6601 Lyndale Avenue South This is a first offense for Houihan's. At no time did any of the minors consume any of the alcohol. The youth presented their personal, valid ID's and at no time attempted to convince anyone that they were of legal age.. Establishments were visited at a variety of times, busy or not. busy, in an effort to determine if busy times produced more successful buys. It doesn't appear to have made a difference at either time. After each attempt, successful or unsuccessful, the officers identified themselves to the clerks and issued them a citation if they failed. If the underage youth was unsuccessful in securing alcohol, the clerk was congratulated by officers for doing a good job. The employee that sold alcohol will be charged criminally in court. The action being taken today is for civil enforcement and penalties against the businesses that hold a license to sell alcohol within the City. The fines .being recommended at this time are intended to recover 100% of the costs for conducting the compliance checks and to penalize the businesses punitively. Compliance checks will continue to occur during 2001 at the rate of at least two to three a year. It is also recommended that 15% of the punitive fines be designated for future alcohol and tobacco education efforts within the community. III. BASIS OF RECOMMENDATION A. POLICY • Resolution 8808 specifies certain improper conduct of alcohol license holders and delineates the progressive discipline that can be expected when violations occur, such as the sale of alcohol to minors. • Staff recommends that the City Council suspend each of the first time violating establishments' license to sell alcohol for two consecutive days and to levy a fine against each establishment in the amount of $500 for the first violation. Staff is also proposing that each first time violating establishment attend a mandatory meeting with the Public Safety Director to present their individual establishment's plan to ensure eliminating any future actions of this kind. In addition, one representative, preferably a manager of each of the establishments, is to attend an alcohol sales and awareness program presented by Crime Prevention staff. • Staff recommends that the City Council suspend each of the second time violating establishments' license to sell alcohol for five consecutive days and to levy a fine against each establishment in the amount of $1500 for the second violation. Staff is also proposing that the Public Safety Director will select the five consecutive 'days that the licenses will be suspended. It is further recommended that second- time violating establishments be required to meet a second time with the Public Safety Director and to also conduct a mandatory alcohol and sales awareness training session with all of their employees. This training will be provided by either a private firm approved by Public Safety, or by Public Safety staff, with all costs of the training to be paid by the establishment. • Staff recommends that the City Council suspend each of the third time violating establishments' license to sell alcohol for ten consecutive days and to levy a fine against each establishment in the amount of $1750 for the third violation. Staff is also proposing that the Public Safety Director select the ten consecutive day that the licenses will be suspended. . • .Staff recommends that the City Council permanently revoke the fourth time violating establishment's license to sell alcohol and levy a fine of $2000 for. the violation. B. CRITICAL ISSUES • It is a violation of Minnesota State Statute and City ordinance to sell alcohol to underage youth. • Civil enforcement penalties taken in the past by the City Council against several establishments have been severe. This was done to send a message to the establishments and the community that the Council will not tolerate this type of violation to continue in the community and that Richfield youth and their well-being are highly valued. Citizen representatives of the Richfield Advisory Board of Health support severe actions against establishments in an effort to protect the youth of the community and to send a message that youth and their well-being are a high priority in this City. U • C. FINANCIAL • All costs of conducting compliance checks will be reimbursed through the fines that are levied against an establishment for failing an alcohol compliance check. • Furthermore, 15% of the punitive fines are designated for future alcohol and tobacco educational efforts within within the community. D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION~S~ • The Council could decide to take no action against the establishments for the sale of alcohol to a minor which would result in no disciplinary actions against the establishments. This would, however, send a message to the community that children and their well being are not a priority in Richfield. • The Council may consider taking. more or less severe action against the establishments that sold alcohol to underage youth; however, that would deviate from the guidelines set for progressive discipline in Resolution No. 8808. V. ATTACHMENTS • Resolutions. V. PRINCIPAL PARTIES EXPECTED AT MEETING • Representatives from each of the establishments are expected to be in attendance at the meeting as they were notified in writing of the need for someone to be present. • RESOLUTION NO. RESOLUTION SUSPENDING THE ON-SALE INTOXICATING AND SUNDAY LIQUOR LICENSES FOR HOULIHAN'S, 6601 LYNDALE AVENUE SOUTH, AND IMPOSING A CIVIL PENALTY FOR FIRST TIME FAILURE OF ALCOHOL COMPLIANCE CHECK WHEREAS, Houlihan's ("Licensee") holds an On-Sale Intoxicating and Sunday Liquor license from the City of Richfield; and WHEREAS, on July 16,2001, the City of Richfield Public Safety Department conducted a compliance check of the Licensee's establishment and, during the compliance check, an employee of the Licensee sold alcohol to a minor; and WHEREAS, this is their first failed alcohol compliance check with the civil penalty for that failure being imposed by the Council at their September 10, 2001 meeting; and WHEREAS, the Licensee appeared before the Richfield City Council on September 10, 2001 and admitted the violation; and the Licensee has stipulated to the suspension and penalty imposed by this resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield. as follows: 1. The Licensee's On-Sale Intoxicating and Sunday Liquor licenses are hereby suspended for a period of two consecutive days, commencing on a date to be determined by the Public Safety Director, but to take place within 30 days of their Council appearance. 2. A civil penalty of $500 is hereby imposed. On or before October 10, 2001, the Licensee shall deliver a check or money order payable to the City of Richfield in the amount of $500. 3. Meet with the Director of Public Safety to present an action plan to ensure future compliance by October 10, 2001; and, 4. One staff member,. preferably~the manager, must attend an alcohol compliance and sales awareness presentation conducted by Public Safety staff within 30 days of their Council appearance. 2001. Passed by the City Council of the City of Richfield this 10th day of September, Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk RESOLUTION NO. • RESOLUTION SUSPENDING THE ON-SALE 3.2 PERCENT INTOXICATING MALT LIQUOR LICENSE FOR KINHDO, 6345 PENN AVENUE SOUTH; AND IMPOSING A. CIVIL PENALTY FOR FIRST TIME FAILURE OF ALCOHOL COMPLIANCE CHECK WHEREAS, Kinhdo ("Licensee") holds an On-Sale 3.2 Percent Intoxicating Malt Liquor License from the City of Richfield; and WHEREAS, on July 14, 2001, the City of Richfield Public Safety Department conducted a compliance check of the Licensee's establishment and during the compliance check, an employee of the Licensee sold alcohol to a minor; and WHEREAS, this is their second failed alcohol compliance check, but it serves as a first failed -check as it occurred outside of the two years of their first failure with this first penalty being imposed by the Council at the September 10, 2001 meeting. WHEREAS, Licensee appeared before the Richfield City Council on September 10, 2001 and admitted the violation; and the Licensee has stipulated to the suspension and penalty imposed. by this resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield as follows: 1. The Licensee's On-Sale 3.2 Percent Intoxicating Malt Liquor license is hereby suspended for a period of two consecutive days, commencing on a date to be determined by the Public Safety Director, but to take place within 30 days of their Council appearance. 2. A civil penalty of $500 is hereby imposed. On or before October 10, 2001,. the Licensee shall deliver a check or money order payable to the City of Richfield in the amount of $500. 3. Meet with the Director of Public Safety to present an action plan to ensure future compliance by October 10, 2001; and 4. One staff member preferably the manager, must attend an alcohol compliance and sales awareness presentation conducted by Public Safety staff within 30 days of their Council appearance. Passed by the City Council of the City of Richfield this 10th day of September, 2001. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk • RESOLUTION NO. RESOLUTION SUSPENDING THE OFF-SALE 3.2 PERCENT INTOXICATING MALT LIQUOR LICENSE FOR THE OASIS MARKET (FORMERLY FOOD N FUEL), 6300 LYNDALE AVENUE SOUTH; AND IMPOSING A CIVIL PENALTY FOR FIRST TIME ALCOHOL COMPLIANCE FAILURE WHEREAS, the Oasis Market ("Licensee") holds an Off-Sale 3.2 Percent Malt Liquor License from the City of Richfield; and WHEREAS, on July 14, 2001, the City of Richfield Public Safety Department conducted a compliance check of the Licensee's establishment; and, during the compliance check, an employee of the Licensee .sold alcohol to-a minor with he civil penalty being imposed on September 10, 2001; and WHEREAS, this is their#irst failed alcohol compliance check with the civil penalty for that failure being imposed by the Council at their September 10, 2001 meeting; and WHEREAS, the Licensee appeared before. the Richfield City Council on September 10, 2001 and admitted the violation and stipulated to-the suspension and penalty imposed by this resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City` of Richfield as follows: 1. The Licensee's Off-Sale 3.2 Percent Intoxicating Malt Liquor license is hereby suspended for a period of two consecutive days, commencing on a date to be determined by the Public Safety Director, but to take place within 30 days of their Council appearance. 2. A civil .penalty of $500 is hereby imposed. On or before October 10, 2001, -the Licensee shall deliver a check or money order payable to the City: of Richfield in the amount of $500. 3. Meet with the Director of Public Safety to present an action plan to ensure future compliance by October 10, 2001; and 4. One staff member, preferably the manager, must attend an .alcohol compliance and sales awareness presentation conducted by Public Safety staff within 30 days of their Council appearance. Passed by the City Council of the City of Richfield this 10th day of September, 2001. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk • RESOLUTION SUSPENDING THE ON-SALE 3.2 PERCENT INTOXICATING MALT LIQUOR LICENSE FOR DAVANNI'S, 2312 WEST 66TH STREET; AND IMPOSING A CIVIL PENATY FOR FIRST TIME ALCOHOL COMPLIANCE FAILURE WHEREAS, Davanni's ("Licensee") holds an On-Sale 3.2 Percent Intoxicating Malt Liquor License from the City of Richfield; and WHEREAS, on July 14, 2001, the City of Richfield Public Safety Department conducted a compliance check of the Licensee's establishment; and during the compliance check, an employee of the Licensee sold alcohol to a minor;. and WHEREAS, this is their first failed alcohol compliance-check with the civil penalty for that failure being imposed by the Council at their September 10, 2001 meeting; and WHEREAS, the Licensee appeared before the Richfield City Council on September 10, 2001 and admitted the violation and stipulated to the suspension and penalty imposed by this resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield as follows: 1. The .Licensee's On-Sale 3.2 Percent Intoxicating Malt Liquor license is hereby suspended for a period of two consecutive days, commencing on a date to be determined by the Public Safety Director, but to take place within 30 days of their Council appearance. 2. A civil penalty of $500 is hereby imposed. On or before October 10, 2001, the Licensee shall deliver a check or money order payable to the City of Richfield in the amount of $500.. 3. Meet with the Director of Public Safety to present an action plan to ensure future compliance by October 10, 2001; and 4. One staff member, preferably a manager, must attend an alcohol compliance and sales awareness presentation conducted by Public Safety staff within 30 days of their Council appearance. Passed by the City Council of the City of Richfield this 10th day of September, 2001. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk RESOLUTION NO. RESOLUTION SUSPENDING THE OFF-SALE 3.2 PERCENT INTOXICATING MALT LIQUOR LICENSE FOR ASIAN DIRECT ORIENTAL, 607 EAST 77TH STREET; AND IMPOSING A CIVIL PENALTY FOR FIRST TIME ALCOHOL COMPLIANCE FAILURE WHEREAS, Asian Direct Oriental ("Licensee") holds an Off--Sale 3.2 Percent Intoxicating Malt Liquor license from the City of Richfield; and WHEREAS, on July 14, 2001, the City of Richfield Public Safety Department conducted a compliance check of the Licensee's establishment, and during the compliance check, an employee of the Licensee sold alcohol to a minor; and WHEREAS, this is their first failed alcohol compliance check with the. civil penalty for that failure being imposed by the Council at their September 10, 2001 meeting; and WHEREAS, the Licensee appeared before the Richfield City Council on September 10, 2001 and admitted the violation and stipulated to the suspension and penalty imposed by this resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield as follows: 1. The Licensee's Off-Sale 3.2 Percent Intoxicating Malt Liquor license is hereby suspended for a period of two consecutive days, commencing on a date to be determined by the Public Safety Director, but to take place within • 30 days of their Council appearance. 2. A-civil penalty of $500 is hereby imposed. On or before October 10, 2001, the Licensee shall deliver a check or money order payable to the City of Richfield in the amount of $500. 3. Meet with the Director of Public Safety by October 10, 2001 to present an action plan to ensure future compliance; and 4. One staff member, preferably the manager, must attend an alcohol compliance and sales awareness presentation conducted by Public Safety staff within 30 days of their Council appearance. 2001. Passed by the City Council of the City of Richfield this 10th day of September, Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk.. • RESOLUTION NO. . RESOLUTION SUSPENDING THE ON-SALE INTOXICATING AND SUNDAY LIQUOR LICENSES FOR KHANS MONGOLIAN BARBECUE, 500 EAST 78TH STREET; AND IMPOSING A CIVIL PENALTY FOR SECOND TIME ALCOHOL COMPLIANCE FAILURE WHEREAS, Khans Mongolian Barbecue, 500 East 78th Street (Licensee") holds On-Sale Intoxicating Liquor License and Sunday from the City of Richfield; and WHEREAS, on July 14, 2001, the City of Richfield Public Safety Department conducted a compliance check of the Licensee's establishment; and during the compliance check, an employee of the Licensee sold alcohol to a minor and; WHEREAS, this is a second violation of the sale of alcohol to a minor,. with the first violation occurring on July 16, 1999. It should be noted that this second failure occurred two days shy of two years from the first occurrence. WHEREAS, the Licensee appeared before the Richfield City Council on September 10, 2001 and admitted the violation and stipulated to the suspension and penalty imposed by this resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield as follows: 1. The Licensee's On-Sale Intoxicating and Sunday Liquor License is hereby. suspended for a period of five consecutive days, commencing on a date to be determined by the Public Safety Director, but to take place within 30 days of their Council appearance. 2. A civil ,penalty of $1500 is hereby imposed. On or before October 10, 2001, the Licensee shall deliver a check or money order payable to the City of Richfield in the amount of $1500. 3. The Licensee must schedule mandatory alcohol compliance sales awareness training for all employees who are responsible for the service of alcohol to customers. This will include all servers, bartenders and all managers and must be scheduled to occur no later than October 10, 2001. This training will be provided at a location to be determined by Public Safety staff and all costs associated with the training, to include staff time and materials, will be the responsibility of the Licensee. 4. Meet with the Director of Public Safety to present an action plan to ensure future compliance by October 10, 2001, and 5. .One staff member, preferably the manager, must attend an alcohol compliance and sales awareness presentation conducted by Public Safety staff within 30 days of their Council appearance. Passed by the City Council of the City of Richfield this 10th day of September, 2001. Martin J. Kirsch, Mayor ATTEST: • Nancy Gibbs, City Clerk RESOLUTION NO. RESOLUTION SUSPENDING THE OFF-SALE 3.2 PERCENT INTOXICATING MALT LIQUOR LICENSE FOR EL JALAPENO, 1430 EAST 66TH STREET; AND IMPOSING A CIVIL PENALTY FOR SECOND TIME. ALCOHOL COMPLIANCE FAILURE WHEREAS, EI Jalapeno ("Licensee") holds an Off-Sale 3.2 Percent Intoxicating Malt Liquor License from the City of Richfield; and WHEREAS, on July 14, 2001 the City of Richfield Public Safety Department conducted acompliance-check of the Licensee's establishment, and during the compliance check, an employee of the Licensee sold alcohol to a minor. WHEREAS, this is a second violation of the sale of alcohol to a minor with the first sale of alcohol to a minor occurring on November 18, 1999; and WHEREAS, this is their second failed compliance check with the civil penalty being imposed by the Council at their September 10, 2001 meeting, and WHEREAS, the Licensee appeared before the Richfield City Council on September 10, 200.1 and admitted the violation and stipulated to the suspension and penalty imposed by this resolution.. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield as follows: 1. . The Licensee's Off-Sale 3.2 Percent Intoxicating Malt Liquor license is hereby suspended for a period of five consecutive days, commencing on a date to be determined by the Public Safety Director, but to take place no later than October 10, 2001. 2. A civil penalty of $1500 is hereby imposed. On or before October 10, 2001, the Licensee shall deliver a check or money order payable to the City of Richfield in the amount of $1500. 3. The Licensee must schedule mandatory alcohol compliance sales awareness training for all employees who are responsible for the service of alcohol to customers. This will include all servers, bartenders and all managers and must be scheduled to occur no later than October 10, 2001. This training will be provided at a location to be determined by Public Safety staff and all costs associated with the training, to include staff time and materials, will be the responsibility of the Licensee. 4. Meet with the Director of Public Safety to present an action plan to ensure further compliance by October 10, 2001; and 5. One staff member, preferably the manager, must attend an alcohol compliance and sales awareness presentation conducted by Public Safety staff within 30 days of their Council appearance. Passed by the City Council of the City of Richfield this 10th day of September, 2001. ATTEST: Martin J. Kirsch, Mayor U Nancy Gibbs, City Clerk RESOLUTION NO. RESOLUTION SUSPENDING THE .OFF-SALE 3.2 PERCENT INTOXICATING MALT LIQUOR LICENSE FOR KENNY'S MARKET, 6708 PENN AVENUE SOUTH, AND IMPOSING A CIVIL PENALTY fOR THIRD TIME ALCOHOL COMPLIANCE FAILURE WHEREAS; Kenny's Market, (Licensee") holds an Off-Sale 3.2 Percent Intoxicating Malt Liquor license from the City of Richfield; and WHEREAS, on July 14, 2001, the City of Richfield Public Safety Department conducted a compliance check of the Licensee's establishment and .during the compliance check, an employee of the Licensee sold alcohol to a minor; and WHEREAS, this is the third violation of the sale of alcohol to a minor with the second sale occurring on July 12, 1999, and the first sale occurring on March. 4, 1999; and WHEREAS, this is the third failed compliance check with the civil penalty being imposed by the Council at their September 10, 2001 meeting; and WHEREAS, the Licensee appeared. before the Richfield. City Council on September 10, 2001 and admitted the violation and. stipulated to the suspension and penalty imposed by this resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield as follows: 1. The Licensee's Off-Sale 3.2 Percent Intoxicating Malt Liquor license is hereby suspended for a period of ten consecutive days, commencing on a date to be determined by the Public Safety Director, but to take place within 30 days of their Council appearance. 2. A civil penalty of $1750 is hereby imposed. On or before October 10, 2001, the Licensee shall deliver a check or money order payable to the City of Richfield in .the amount of $1750. 3. Licensee must schedule mandatory alcohol compliance sales awareness training for all employees who are responsible for the service of alcohol to customers. This will include all servers, bartenders and all managers and ..must. be scheduled to occur no later than October 10, 2001. This training will be provided at a location to be determined by Public Safety staff and all costs associated with the: training, to include staff time and materials, will be the responsibility of the Licensee: 4. Meet with the Director of Public Safety by October 10, 2001 to present an action plan to ensure future compliance; and 5. One staff member, preferably the manager, must attend an alcohol compliance and sales awareness presentation conducted by Public Safety staff within 30 days of their Council appearance. Passed by the City Council of the City of Richfield this 10th Day of September; 2001. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk RESOLUTION NO. • RESOLUTION REVOKING THE OFF-SALE 3.2 PERCENT INTOXICATING MALT LIQUOR LICENSE FOR 12TH AVENUE PHILLIPS 66, 774412TH AVENUE SOUTH, AND IMPOSING A CIVIL PENALTY FOR FOURTH TIME ALCOHOL COMPLIANCE FAILURE WHEREAS, 12th Avenue Phillips 66 ("Licensee") holds an Off-Sale 3.2 Percent Intoxicating Malt Liquor license from the City of Richfield; and WHEREAS, on July 14, 2001, the City of Richfield Public Safety Department conducted a compliance check of the Licensee's establishment; and during the compliance check, an employee of the Licensee sold. alcohol to a minor; and WHEREAS, this is their fourth failed compliance check with the civil penalty being imposed by the Council at their September 10, 2001 meeting; and WHEREAS, this is the fourth violation of the- sale of alcohol to a minor with the third violation occurring on August 7, 2000, the second violation occurring on July 12, 1999, and the first violation occurring on March 23, 1999; and WHEREAS, the Licensee appeared before the Richfield City Council on September 10, 2001 and admitted the violation and stipulated to the revocation and penalty imposed by his resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield as follows: 1. The Licensee's Off-Sale 3.2 Percent Intoxicating Malt Liquor license is hereby revoked. 2. A civil penalty of $2000 is hereby imposed. On or before October 10, 2001, the Licensee shall deliver a check or money order payable to the City of Richfield in the amount of $2000. Passed by the City Council of the City of Richfield this 10th Day of September, 2001. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk • AGENDA SECTION: Other Business AGENDA ITEM # 9 REPORT # 233 ~J STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 10, 2001 C REPORT PREPARED BY: BETSY CxRISTENSEN, ADMINISTRATIVE SUPPORT SERVICES MANAGER NAME, TITLE REPORT PRESENTER: DAN SCOTT, DIRECTOR OF PUBLIC SAFETY NAME, TITLE DEPARTMENT DIRECTOR REVIEW: ~'e SIGNATURE REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of a request for renewal of a residential kennel license for Gary and Stacy Berres, 7412 Colfax Avenue South. I. RECOMMENDED ACTION: By Motion: Approve the request for renewal of a residential kennel license for Gar and Stac Berres, 7412 Colfax Avenue South. II. BACKGROUND On July 30, 2001, Gary and Stacy Berres submitted an application for the renewal of their residential kennel license. They own four dogs. Mr. and Mrs. Berres' application contains the signatures of two contiguous property owners. One property owner was not willing to sign the application. The concern this neighbor _ _ had was regarding the condition of the backyard. The original residential kennel license was approved and issued to Mr. and Mrs. Berres on January 22, 2001 (see attached Council minutes for January 22, 2001). Although their current residential kennel license was issued only seven months ago, all kennel licenses are renewed on a yearly basis during the months of July and August. 09106erresKennelRenewal The residential kennel license granted to Mr. and Mrs. Berres on January 22, 2001 included a stipulation that the back yard be maintained in a sanitary condition that does not result in odors being. present, and that the review be brought back before Council if complaints were received. No complaints were received prior to staff notifying neighbors of the application for renewal of the kennel license. A Community Service Officer conducted an inspection of the property on July 31, 2001. There were no apparent problems found with the exterior premises at that time. It appeared to be free of feces and odor. No one was home to permit an inspection of the interior of the home. Staff received one phone call from the neighbor at 7416 Colfax Avenue in response to notification of the kennel. license renewal request. This is the same neighbor who did not sign as a contiguous property owner on Mr. and-Mrs. Berres' renewal application. This neighbor indicated that he was not in agreement with the issuance of this license. The concern he had was regarding the condition of the backyard, stating that he thinks it is a disaster. The complaint was received later in the same week that the Community Service Officer inspected the property. Because of the stipulation placed on the original approval of this kennel license, and the complaint received, staff chose to conduct a second inspection of the property. This inspection was conducted on August 24, 2001. The property was found to be in immaculate condition, free of any feces or odor.. • The Environmental Health staff has no history of receiving any complaints for this address. The Public Safety Department, Police and Fire, received four calls to this address in the year 2000. All of the calls were in reference to false alarms. There have been no calls to this address in 2001. III. BASIS OF RECOMMENDATION A. POLICY • Although this application is for four dogs, it does not exceed the maximum number of six that was .approved by the Council as policy on July 22, 1991. • The City has adopted a policy that staff is to notify neighbors surrounding the area of the residential kennel license. Staff received one complaint regarding this application. B. CRITICAL ISSUES • N/A C. FINANCIAL • N/A D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION(S~ • Deny the request for the renewal of a residential kennel license for Gary and Stacy Berres; however, the Public Safety Department has not found any basis for a denial. V. ATTACHMENTS • -Letter from applicant, Stacy-Berres. • Copy of Minutes of January 22, 2001 Council- meeting showing approval of Berres' residential kennel license. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Gary and Stacy Berres • July 16, 2001 City of Richfield Licensing Department 6700 Portland Ave S Richfield, MN 55423 RE: Residential Kennel License To Whom It May Concern: This letter is a very difficult one to write. This has been weighing on our minds for some time now. We love our dogs and it would kill us to have to get rid of any of them. As you can see by the attached residential ken~~el license application, ate attempt was made to receive all required signatures. We received two out of the three. When the neighbor at 7416 Colfax Ave was approached he refused, stating that he would do all in his power to stop the license from being renewed. During the brief conversation with the 7416 neighbor, I asked him why he had a problem with us and what we had ever done to him. He alluded to the fact that we had not done anything, but that all the people that have lived at 7412 Colfax (our address) have had dogs. So I guess it's not just us! He also indicated that he cannot have guests in his yard because of the noise. I pointed out that when he does have guests and we are aware of it, our clogs are not allowed out because we don't want to cause problems. But we have noticed that when the dogs are out, and there are children next door, they are often times at the fence aggravating the dogs through knocking on the fence, throwing things over the fence, etc. This is a very personal issue for us, we love our animals and they are well cared for. We recently had our house on the market in an attempt to relocate outside of the Richfield area; but the sale did not go through and we have elected to stay for the time being. We enjoy living in Richfield and don't really want to leave. But we don't want our staying to be a disappointment to the neighbor - I'm sure 7416 was very disappointed that he's not getting rid of us. We have tried very hard to comply with the restrictions placed on us by the City Council at the time the current residential kemiel license was issued, and hopefully we are succeeding. We are out every afternoon and three to four times on the weekends cleaning up the dog messes. The dogs are not allowed to bark on a continuous basis. They do bark when they are playing, and why shouldn't they, they're having fun! We have dog owners all around us that allow their dogs to stay outside and bark all they want. I've heard this several times when 1 return home in the evening or even on weekends. Thank you for consideration of this letter when going through the residential kennel license renewal process. Sincerely, ;~ ~ ~~ ~ / . ~~ / _.. Gary & Stacy Berres • 7412 Colfax Ave So. Richfield, MN 55423 612-869-9018 • Item #10 CONSIDERATION OF NEW RESIDENTIAL KENNEL LICENSE FOR 7412 COLFAX AVENUE; FOUR DOGS S.R. NO.' 32 Public Safety Director Scott reviewed Staff Report No. 32 regarding a new residential kennel license for Gary and Stacy Berres, 7412 Colfax Avenue, for four dogs. Applicant Stacy Berres, 7412 Colfax Avenue, addressed the Council stating that she stops barking of the dogs as soon as she realized it's happening. Council Member Enger asked what kind of dogs were at the residence and the size of the yard. Ms. Berres stated that she has four large dogs and doesn't know the yard size. Jim McCarvill, 7416 Colfax Avenue, neighbor to the applicant, stated that he preferred the license not be issued because of odor in the yard. Sometimes he is unable to be in his-own yard because of it Ms. Berres stated that she picks up animal. feces at least weekly, but knows there can be an extensive odor, especially during the summer. • M/Enger, S/Ulrich to deny the new residential kennel license for Gary and Stacy Berres. 7412 Colfax Avenue. Motion failed 2-3. (Mayor Kirsch, and Council.Members Rosenberg and Sandahl opposed.) Council Member Enger stated that if the City receives numerous complaints about odor, the license should be rescinded. He believes a yard, if it's 30' x 70', cannot support four dogs without constant maintenance. City Attorney Thomson reviewed the ordinance code regarding granting and revoking a license. M/Sandahl, S/Rosenberg to approve the new residential kennel license for Gary and Stacy Berres, 7412 Colfax Avenue, with the stipulation that the back. yard be maintained in sanitary condition that does not result in odors and that the review of the license be brought back to Council if complaints are received. Motion carried 5-0. • AGENDA SECTION: Other Business AGENDA ITEM # $ REPORT # 23 2 STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 10, 2001 REPORT PREPARED BY: NAME, TI7ZE • REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: DAWN WEITZEL HUMAN RESOURCES MANAGER STEVEN L. DEVICH TIVE SERVICES DIRECTOR ITEM FOR COUNCIL CONSIDERATION: Request for Council to confirm the appointment of Kevin McGinty as Fire Services Director for the City of Richfield. I. RECOMMENDED ACTION: By Motion: Confirm the appointment of Kevin McGinty as Fire Services Director for the City of Richfield. II. BACKGROUND The Fire Services Director position was created in September of 2000. The City has initiated two recruitment and selection processes to fill this vacancy. A total of 96 applications were received within the hiring proceedings. The position profile was developed based upon feedback from Fire Department staff, Human Resources Division, the City Manager and City Council. The screening process, which included a: qualifications review, in-basket and simulation . exercises, situational interviews, psychological and physical exams, background and drug check, and Civil Service confirmation have been completed. The City's interview team included Marty Scheerer, Fire Chief for Edina; Steve Devich, Administrative Services Director; .Brad Sveum, Acting Assistant Chief/Fire Marshal; Dawn Weitzel, Human 0910FirDirAppt Resources Manager; Dan Scott, Public Safety Director; and Samantha Orduno, City. • Manager. As a result of this screening process, Kevin McGinty has been selected by the City Manager for appointment. Mr. McGinty is presently the Fire Chief for West Metro Fire-Rescue, a consolidated fire district that provides service to the cities of Crystal and New Hope. Before consolidation, he was Fire Chief of Crystal for nine years, Fire Chief of the City of Brainerd for two years, Firefighter and Fire Lieutenant for the City of Richfield for nine years and volunteer Firefighter for the City of Apple Valley for two years. Mr. McGinty graduated from Richfield Senior High School. and attended numerous courses through the National Fire Academy and technical colleges. In addition he is also a part time instructor for the Anoka Hennepin Technical College and the MN State Fire School. Mr. McGinty has superior skills in the area of public communication and fire services management. III. BASIS OF RECOMMENDATION A. POLICY • According to Richfield's City .Code, Section 6.02 Powers and Duties of the City Manager, Sub.3, Appointment or removal of department heads shall be made final only upon a majority vote of the Council. • B. CRITICAL ISSUES • The Fire Services Department has been without a Director since its inception in September of 2000. C. FINANCIAL • The 2001 Budget includes the funding necessary to provide for the salary and benefit contributions as negotiated. D. LEGAL • According to Richfield's City Code, Council must approve the selection of Mr. McGinty before he is appointed Fire Services Director. IV. ALTERNATIVE RECOMMENDATION~S~ • The Council may reject the candidate and direct the City Manager to undertake a new selection process. V. ATTACHMENTS • None VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Kevin McGinty • AGENDA SECTION: CONSENT AGENDA ITEM # 7 J REPORT # 23 I _ STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 10, 2001 • BETSY CxRISTENSEN, ADMINISTRATIVE REPORT PREPARED BY: SUPPORT SERVICES MANAGER NAME. T/TLE REPORT PRESENTER: DAN SCOTT, DIRECTOR OF PUBLIC SAFETY NAME, TITLE DEPARTMENT DIRECTOR REVIEW: a SIGNATURE REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of a request for an itinerant place of amusement license for Evilhill Productions, Hub Shopping Center, 6 West 66th Street, for their Dungeons of Darkness and Doom theatrical haunted house to be held October 12-31, 2001. I. RECOMMENDED ACTION: By Motion: Approve the request for the issuance of an itinerant place of amusement license for Evilhill Productions for their Dungeons of Darkness and Doom theatrical haunted house to be held October 12- 31.2001 at the Hub Shopping Center, 6 West 66th Street. • II. BACKGROUND On August 20, 2001, Evilhill productions submitted an application for an itinerant place of amusement license for their Dungeons of Darkness and Doom theatrical haunted house event. The event will take place in the vacant retail space next to the China Garden Restaurant, at the Hub Shopping Center, and will occur for a total of thirteen days between the dates of October 12 and October 31, 2001. The hours of operation will be from 7 p.m. until 10 p.m., Sunday through Thursday, and from 7 p.m. until 11 p.m. on Friday and Saturday. 0910 Haunted House Evilhill Productions is owned by David Barnhill and Dr.Tom McEvilly. Both of these .individuals are veterans of the haunted house, theatrical, and film industries. They . have designed attractions for the entertainment industry for over 25 years in the U.S., Europe, and Asia. They are known for their experience, quality, community involvement, and attachment to various charities. Some of the past charities they have been involved with include the Multiple Sclerosis Society, March of Dimes, the U.S. Army, Scouts, Pillsbury House, Youth and Family Services, and various area high schools. A background investigation reveals that neither of these individuals has any known criminal record. Evilhill Productions uses trained and. professional actors to give guided story-telling tours through the haunted house site. They offer the only disabled-accessible haunted attraction in the Twin Cities. Evilhill's attractions are rated PG-13, and no one under the age of eight is admitted. In addition, at no time do the performers come in physical contact with: any of the patrons. The applicant has been in contact with the Public Safety Inspections Division and has acquired all of the necessary permits.. The applicant has contacted the Planning and Zoning staff in regards to zoning issues and requirements. Aside from parking considerations, there seem to beno other concerns. The applicant has estimated the need for approximately 30 to 40 parking spaces during operating hours. Since their hours of operation are limited to evening hours, it is believed. that competition with most of the surrounding Hub • neighbors would be reduced. In addition, the applicant has secured Richfield police officers to handle any. traffic and parking issues, should the need arise. Evilhill Productions has contacted the Fire Department for any possible concerns or requirements and have assured staff that they will comply with any recommendations. The applicant has contacted the Public Safety Department to cover security-related issues.. They plan to have at least one police officer on the premises at all times during their operating hours. Liability insurance coverage has been verified. The certificate of liability is being forwarded to City staff. Farmers Insurance -Lloyds of London affords the coverage III. BASIS OF RECOMMENDATION A. POLICY • The applicant has complied with all of the provisions of the City application process. • B. CRITICAL ISSUES • None • C. FINANCIAL • N/A D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION(S~ • Deny the request for an itinerant place of amusement license for Evilhill Productions' Dungeons of Darkness and Doom theatrical haunted house. This would mean that they would not be able to conduct activities scheduled for October 12 through October 31, 2001. However, the Public Safety Department has not found any basis for a denial. V. ATTACHMENTS • N/A VI. PRINCIPAL PARTIES EXPECTED AT MEETING • David Barnhill, Owner • Tom McEvilly, Owner • • • AGENDA SECTION: CONSENT AGENDA ITEM # 7 j REPORT # 230 STAFF REPORT CITY COUNCIL MEETING • SEPTEMBER 10, 2001 REPORT PREPARED BY: BETSY CHRISTENSEN, ADMINISTRATIVE SUPPORT SERVICES MANAGER NAME, TITLE REPORT PRESENTER: DAN SCOTT, DIRECTOR OF PUBLIC SAFETY NAME, TITLE DEPARTMENT DIRECTOR REVIEW: ~ ~ o .SIGNATURE REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of a request for the renewal of a commercial kennel license for Petco Animal Su lies, Inc., 710 West 66th Street. I. RECOMMENDED ACTION: By Motion: Approve the request for the renewal of a commercial kennel license for Petco Animal Supplies, Inc., located at 710 West. 66th Street. II. BACKGROUND On July 23, Petco Animal Supplies, Inc. submitted an application for the renewal of their commercial kennel license. The application is complete and the $150 fee has been received. A Community Service- Officer conducted an inspection of the property on August 16, 2001. There were no apparent problems found at that time. • The Environmental Health staff received one complaint regarding this address in the past year. The complaint was regarding bugs in the building. The Bloomington Health Inspector was notified. An inspection conducted by the health inspector did reveal insects, but none of medical concern. The applicant was notified to 0910 Petco Commercial Kennel License thoroughly clean the area and to work with Plunketts to get the surroundings • sanitized. No further complaints have been received. There were no police reports on or contact with Petco during the past year. III. BASIS OF RECOMMENDATION A. POLICY • The applicant has complied with the City codes pertaining to a commercial kennel license. The City has previously issued a commercial kennel license to Petco Animal Supplies, Inc. B. CRITICAL ISSUES • N/A C. FINANCIAL • N/A D. LEGAL • N/A • IV. ALTERNATIVE RECOMMENDATION(S~ • Deny the request for the renewal of a commercial kennel license for Petco Animal Supplies, Inc.; however, the Public Safety Department has not found any basis for a denial. V. ATTACHMENTS • None VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None C, r AGENDA SECTION: CONSENT AGENDA ITEM # 7H REPORT # 2 Z 9 J STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 10, 2001 • • KATIA MEDVETSKI REPORT PREPARED BY: REDEVELOPMENT SPECIALIST NAME, TLTLE BRUCE PALMBORG, REPORT PRESENTER: COMMUNITY DEVELOPMENT DIRECTOR NAME, T/TLE DEPARTMENT DIRECTOR REVIEW: ~- SlGNATURE REVIEWED BY CITY MANAGER: ~ , _ . ^ ~~ , ,Q~ _~ ITEM FOR COUNCIL CONSIDERATION: Consideration of the attached resolution authorizing execution of a Stipulation of Final Settlement for 6325 Cedar Avenue (Parcel 4) (66th Street /Trunk Highway 77 Interchange Pro'ect I. RECOMMENDED ACTION: By Motion: Adopt the attached resolution authorizing execution of a Stipulation of Final Settlement for 6325 Cedar Avenue (Parcel 4j (66th Street /Trunk Highwa 77 Interchan a Pro'ect IT. BACKGROUND The City acquired 6325 Cedar Avenue (Stephen Jensen) through aquick-take condemnation action on November 21, 2000 for the realignment and expansion of the Trunk Highway 77 and East 66th Street Interchange. This parcel was originally appraised at $321,175 for real estate and immovable fixtures. Mr. Jensen has agreed to a settlement amount of $376,000, including reimbursement of appraisal fees and interest (not including relocation benefits). This settlement was negotiated between the City's legal counsel, Robert Lindall, Mr. Jensen, and his attorney. The Metropolitan Airports Commission (MAC) concurred with this settlement amount. Upon Council approval of the settlement, a condemnation commissioner's hearing will be scheduled so as to issue an award in the amount of the settlement. 0910jensenstip.doc III. BASIS OF RECOMMENDATION A. POLICY • The subject property has been identified for purchase for the project. • The Memorandum of Understanding between the City, the Minnesota Department of Transportation (MnDOT), and the MAC, approved by the Council on February 28, 2000, outlines the responsibilities for each participating agency. • An agreement between the City and the MAC, dated February 28, 2000, allows the use of condemnation proceedings as a means of acquiring property. • In accordance with the agreement, the MAC is responsible for approving and recommending to the City just compensation and condemnation settlement payments with property owners. B. CRITICAL ISSUES • Approval of the Stipulation of Final Settlement for the Jensen property would essentially complete condemnation proceedings for this property. C. FINANCIAL • MAC is obligated. to fund this transaction. • MAC has approved this final settlement amount. D. LEGAL • The Stipulation of Final Settlement was prepared by Robert Lindall and approved by Mr. Jensen, his legal counsel, and the MAC. E. TIMING • The Stipulation of Final Settlement further details the payout of the settlement at paragraph 2.02 on pages 3 and 4. IV. ALTERNATIVE RECOMMENDATION(S~ • Do not accept the final settlement amount. V. ATTACHMENTS • Resolution authorizing execution of a Stipulation of Final Settlement for 6325 Cedar Avenue (Parcel 4) (66th Street/Trunk Highway 77 Interchange Project) • Stipulation of Final Settlement, Parcel 4 VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A • RESOLUTION NO. RESOLUTION AUTHORIZING EXECUTION OF A STIPULATION OF FINAL SETTLEMENT FOR 6325 CEDAR AVENUE (PARCEL 4) (66TH STREET/TRUNK HIGHWAY 77 INTERCHANGE PROJECT) WHEREAS, the City of Richfield, Minnesota desires to purchase certain real property pursuant to and in furtherance of the 66th Street/Trunk Highway 77 Interchange Project (the "Project") heretofore adopted by the City of Richfield (the "City") said real property located at 6325 Cedar Avenue, Richfield, Minnesota, being described as follows (the "Subject Property"): Lots 6, 7, and 8, Block 15, New Ford Town Hennepin County, Minnesota Together with all abutting streets and alleys, vacated or to be vacated, and all easements, gaps, overlaps. and gores, appurtenant thereto; and WHEREAS, the City Council has adopted a layout for Project improvements; and WHEREAS, the Project improvements necessitate the purchase of Subject Properly; and WHEREAS, the City is authorized by Minnesota Statutes to acquire real property within its corporate boundaries; and WHEREAS, the Metropolitan Airports Commission (MAC) is initially funding the Project; and WHEREAS, the City has caused appraisals for the Subject Property to be made by qualified independent professional appraisers to determine fair market value of real estate and immovable fixtures and equipment appurtenant thereto; and WHEREAS, a qualified review appraiser has certified the appraisal reports as being in conformity with appraisal standards; and WHEREAS, a qualified fixture review appraiser has certified the fixture appraisal report as being in conformity with appraisal standards; and WHEREAS, MAC has reviewed all appraisal reports and review appraisal reports prepared for the Subject Property and has recommended that the just compensation for the real estate be determined by the City Council to be $300,000 and $21,175 for immovable fixtures; and WHEREAS, on August 14, 2000, the City Council approved just compensation for the real estate in the amount of $300,000 and $21,175 for the immovable fixtures and equipment appurtenant thereto and did make an offer to the properly owner in said amounts; and • WHEREAS, the City Council authorized condemnation of the Subject .Property on August 14, 2000, such proceedings were commenced on behalf of the City by the city attorney; and WHEREAS, on December 1, 2000, the City deposited $321,175 (the "Quick Take Amount") with the Hennepin County District Court Administrator as the City's approved appraisal value for the Subject Property; and WHEREAS, the city attorney has since reached a settlement with the property owner in the amount of $376,000, including reimbursement of appraisal fees and interest (not including relocation benefits) less the Quick Take Amount previously paid and MAC has concurred with the terms of final settlement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows: 1. That the proposed settlement amount of $376,000 is hereby approved. 2. That the city manager and mayor are authorized to execute the Stipulation of Final Settlement and take all other actions necessary to complete the obligations of the City pursuant to its terms. 3. That the city attorney is authorized to take all actions necessary to complete the obligations of the City pursuant to the Stipulation of Final Settlement. • Adopted by the City Council of the City of Richfield, Minnesota this 10th day of September, 2001. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk n • AGENDA SECTION: AGENDA ITEM # REPORT # ~' STAFF REPORT CONSENT 7G 228 CITY COUNCIL MEETING SEPTEMBER 10, 2001 r~ REPORT PREPARED BY: PAM BOOKHOUT, REHABILITATION SPECIALIST NAME, TITLE REPORT PRESENTER: BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: SIGNATURE REVIEWED BY CITY MANAGER: ~ 1 ~ ITEM FOR COUNCIL CONSIDERATION: Consideration of a resolution authorizing continued participation in the Local Housing Incentive Program under the Metropolitan Council's Livable Communities Act. I. RECOMMENDED ACTION: By Motion: Adopt the attached resolution authorizing Richfield's continued participation for 2002 in the Local Housing Incentives Account Program under the Metropolitan Council's Livable Communities Act. • II. BACKGROUND The Livable Communities Act is a 15-year strategy for communities in the region to develop a more diverse housing stock to cover the variety of housing needs. The Metropolitan Council requires communities to annually renew their resolution to participate in the Local Housing Incentives Program under the Livable Communities Act. Participation keeps Richfield competitive in securing state and regionally distributed funds as they are made available. The goals of a more diverse housing stock for Richfield remain unchanged: • More market-rate new construction and remodeled homes; • Development of increased density attached single family homes; 09101ivecomm • A greater variety of apartment choices; and • Affordable housing opportunities through redevelopment projects or through non-profit developers. III. BASIS OF RECOMMENDATION A. POLICY • Program participation and established goals for Richfield remain consistent with Livable Community goals. The Metropolitan Council supports these goals.. • Participation keeps Richfield competitive in securing state and regional community development resources. • In January 2000, the HRA approved recommendations of the Affordable Replacement Housing Policy Advisory Committee. Continued participation in Livable Communities is consistent with Committee recommendations. The Richfield City Council has voted to participate in the program each year since its inception in 1995. B. CRITICAL ISSUES • The Metropolitan Council must be informed of Richfield's plans to participate prior to November 15, 2001 to retain the ability to compete for funding in 2002. C. FINANCIAL • By participating, Richfield competed for and secured a $575,000 grant from the Metropolitan -Council, which was used for apartment remodeling. The Minnesota Housing Finance Agency (MHFA) has provided an additional $566,000 to the Housing and Redevelopment Authority for remodeling programs because of Livable Communities participation. D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION~S~ • Withdraw from participation. • Modify the goals.. V. ATTACHMENTS • Resolution VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A RESOLUTION NO. RESOLUTION ELECTING TO CONTINUE PARTICIPATION IN THE LOCAL HOUSING INCENTIVES ACCOUNT PROGRAM UNDER THE METROPOLITAN LIVABLE COMMUNITIES ACT CALENDAR YEAR 2002 WHEREAS, the Metropolitan Livable Communities Act (Minnesota Statutes Section 473.25 to 473.254) establishes a Metropolitan Livable Communities Fund which is intended to address housing and other development issues facing the Metropolitan Area defined by Minnesota Statutes Section 473.121; and WHEREAS, the Metropolitan Livable Communities Fund, comprised of the Tax Base Revitalization Account, the Livable Communities Demonstration Account, the Local Housing Incentive Account and the Inclusionary Housing Account, is intended to provide certain funding and other assistance to metropolitan area municipalities; and WHEREAS, a metropolitan area municipality is not eligible to receive grants or loans under the Metropolitan Livable Communities Fund nor eligible to receive certain polluted-site cleanup funding from the Minnesota Department of Trade and Economic Development unless the municipality is participating in the Local Housing Incentives Account Program under the Minnesota Statutes 473.254; and WHEREAS, the Metropolitan Livable Communities Act requires the Metropolitan Council to negotiate with each municipality to establish affordable and life-cycle housing goals for that municipality that are consistent with and promote the policies of the Metropolitan Council as provided in the adopted Metropolitan Development Guide; and WHEREAS, each municipality must identify to the Metropolitan Council the actions the municipality plans to take to meet the established housing goals through preparation of the Housing Action Plan; and WHEREAS, the Metropolitan Council adopted, by resolution after a public hearing, negotiated affordable and life-cycle housing goals for each participating municipality; and WHEREAS, a metropolitan area municipality which elects to participate in the Local Housing Incentives Account Program must do so by November 15 of each year; and WHEREAS, for calendar year 2002, a metropolitan area municipality that participated in the Local Housing Incentive Account Program during the calendar year 2001, can continue to participate under Minnesota Statutes, Section 473.254 if: (a) the municipality elects to participate in the Local Housing Incentives Program by November 15, 2001; and (b) the Metropolitan Council and the municipality have successfully negotiated affordable and life-cycle housing goals for the municipality. 09101ivecomm NOW, THEREFORE, BE IT RESOLVED that the City of Richfield hereby elects to participate in the Local Housing Incentive Program under the Metropolitan Livable Communities Act during the calendar year 2002. Adopted by the City Council of the City of Richfield, Minnesota this 10th day of September 2001. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk • • • AGENDA SECTION: CONSENT AGENDA ITEM # 7 F REPORT # 2 2 7 J STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 10, 2001 • • REPORT PREPARED BY: REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE BRUCE PALMEORG, COMMUNITY ITEM FOR COUNCIL CONSIDERATION: Approval of the condemnation commissioners' award of $350,000 for the Morrow Towing ro ert at 6429 Cedar Avenue. I. RECOMMENDED ACTION: By Motion:. Approve the condemnation commissioners' award of $350,000 for the Morrow Towin ro ert at 6429 Cedar Avenue. II. BACKGROUND The Morrow Towing property at 6429 Cedar is one of several properties along Cedar Avenue that are being acquired for the reconstruction of the ramps and bridge at 66th Street and T.H. 77. This site contained 25,600 square feet and was improved with a 5,033 square foot building. The City's appraiser, Mr. Jason Messner, had a value of $280,000 on the property. The condemnation commissioners established a value of $350,000 for the real estate and $18,225 for the fixtures. City attorney, Robert Lindall is recommending that the City of Richfield accept the condemnation commissioner's award. 0910morrow DEVELOPMENT DIRECTOR NAME, TITLE III. BASIS OF RECOMMENDATION A. POLICY • It is the policy of the City Council to accept the value set by the condemnation commissioners if it is recommended by the City Attorney. B. CRITICAL ISSUES • This award may be appealed by either party. C. FINANCIAL • The Metropolitan Airports Commission is paying for the acquisition of property along Cedar Avenue and has approved the settlement. D. LEGAL • The acceptance of the award is recommended by the City Attorney. IV. ALTERNATIVE RECOMMENDATION(S~ • Do not accept the recommendation and negotiate for a lower award. V. ATTACHMENTS • N/A VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A • r- `~ AGENDA SECTION: CONSENT AGENDA ITEM # 7E REPORT # 226 .- ~` .. STAFF REPORT CITY COUNCIL MEETING SEPTEMBER lO, 2001 REPORT PREPARED BY: REPORT PRESENTER: NAME, TITLE • DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER:. JIM TOPITZHOFER, RECREATION SERVICES DIRECTOR NAME, TITLE JIM TOPITZHOFER, RECREATION SERVICES DIRECTOR /~ ITEM FOR COUNCIL CONSIDERATION: Consideration of approval of purchase of boardwalk ramps at Wood Lake Nature Center,- per the attached uote, to Lakeshore E ui ment in the amount of $30',093.70. I. RECOMMENDED ACTION: By Motion: Approval of the purchase of boardwalk ramps at Wood .Lake Nature Center contract per the attached quote to Lakeshore Equipment in the amount of $30,093.70. II. BACKGROUND The ramps to the floating boardwalk at Wood Lake Nature Center have been problematic for several years. The fluctuation of the water depth has placed a great deal of stress on the ramps. This year, heavy spring rains created a situation where the boardwalk was literally floating away. The best price and design came from Lakeshore Equipment, a Chanhassen firm that specializes in customized dock designs. Their design, plus the addition of anchoring spud poles, will ensure that the ramps can accommodate most high and low water situations. 0910 ramps III. BASIS OF RECOMMENDATION A. POLICY Staff obtained quotes from the following three contractors: Lakeshore Equipment $30,093.70 Chanhassen, MN Gunderson Construction $45,000.00 White Bear Lake, MN Sunram Construction $30,602.40 Corcoran, MN The best price and design came from Lakeshore Equipment, a Chanhassen firm that specializes in customized dock designs. Their design, plus the addition of anchoring spud poles, will ensure that the ramps can accommodate most-high and low water situations. B. CRITICAL ISSUES • Without suitable ramps, the boardwalk is not accessible. The boardwalk's accessibility is important since this is Wood Lake's main structural feature as the boardwalk winds through the central portion of the cattail marsh. C. FINANCIAL ' • The money for the $30,093 project comes from two sources: a $10,000 donation from Fred Babcock VFW Post 5555 specifically for this project and funds from the Irene Dahl estate. Both donations were made to fund projects that would increase the accessibility of the Nature Center to those in wheelchairs. D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION~S~ • Do not approve the purchase from Lakeshore Equipment. • Direct staff to obtain alternate quotes. V. ATTACHMENTS • Quote from Lakeshore Equipment VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None • • • FROM t~cike~}lt)rt, ~glli-ptrt3rft CD., T.ryG. ?F352 Park nri.v~ Ghanhas~en, MN 5531? FAX NQ. :9524744926 Quoted to: WOODLAKE NATURE CENTER 671 d L?>`KESHORE DR . RICHFIELD, MN 55423 Ship to: Aug. 14 2001 12t0APM Pi t~uatat~~~~ Quote Number: ai~ia~ Quote Date: Aug ?, 20U1 Page: 2 Custarr+er tD Good 7hru ~ Payment Tertr+s Sates Rep J l W 4DZAKE 916102 ~ C.O.D, STEtTE . ... ~ Quantity ~« ltem Description •- T Unit Prise ~ ExtehSion~ ~ 16. bb WDDDAC485 ALUM TREATED $XB ADD OI3 424.00 6,?$4.Ob i 2..04 - 2X6X8 TREATRD DECKIN 335.Ofl 670.00 ~ 8 . Qd ~ T,SDPGP2024Z 24' 2" G.ALV t?OST $~ 672.00 1$.00 ISMf3ASP8 ~ SPEJD POLE BRKTS-ALUM , fl0 2 60 ~ 2564.0 32.Od =SMDAF3432 POLY ):'COAT 3X4X12 115.Od ~ 3,68d.Ob , 12_b0 :SM©AHK HINGE KIT- PILOW BLOCK-wAD: 301.72 3,620.64 • z.a0 ~ .RAMP FROM PATH8! ALUM 2,379,32, 2,?58.62 1.00 •- ;SERVICE-DENVER 8, 040.00 $,000.0.0 ; ASSEMBLE--YNSTALL ! ~~ ~~ f. ~~ ~ ~ . { }~ i ~ . ' } -. S l f b t ? 4 5 ~ 2 8 2 6 to u a , . Sates Tax ~ 1, 3 4 8.4 4 Tota l 3b, 093.?OJ AGENDA SECTION: CONSENT AGENDA ITEM # ]D REPORT # 225 STAFF REPORT CITY COUNCIL MEETING • SEPTEMBER 10, 2001 REPORT PREPARED BY: REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: TIM OLSON, PROJECT ENGINEER NAME, TITLE MIKE EASTLING, PUBLIC WORKS DIRECTOR ITEM FOR COUNCIL CONSIDERATION: Consideration for award of contract for demolition and site clearing of 7620 Penn Avenue South (Century Court Gym) and 7744 Penn Avenue South (Citgo Service Station) in Richfield. I. RECOMMENDED ACTION: By Motion: Accept bid minutes/tabulation and award a contract for demolition and site clearing of properties at 7620 Penn Avenue South (Century Court Gym) and 7744 Penn Avenue South (Citgo Service Station), City Project 401-30-521, to Carl Bolander & Son Co. in the amount of $254,320. III. BACKGROUND ~ Council approved plans for the Replacement of the Penn Avenue Bridge over I-494 on June 11, 2001. This project includes the demolition of the two above properties which the City has advertised under a separate contract. The City has acquired title to these properties under the quick take procedure and the properties have been vacated as of August 31, 2001. III. BASIS OF RECOMMENDATION 0910-Demolition#2 NAME, TITLE A. POLICY • The Replacement of the Penn Avenue Bridge over I-494 is consistent with the proposed reconstruction of I-494 and has been identified as a high priority capital improvement in the City's Comprehensive Plan. • The Developer's Agreement between Richfield and Best Buy contains language that commits the City to replace Penn Avenue Bridge over I- 494. The Best Buy Environmental Impact Statement (EIS) identifies the existing Penn Avenue Bridge over I-494 as deficient and in need of replacement. The work contained in this plan mitigates the negative traffic impacts identified in the Best Buy EIS. • The ad for bid for demolition and site clearance at 7620 Penn Avenue South and 7744 Penn Avenue South was published in the Richfield Sun-Current on August 15, 2001 and in the Construction Bulletin on August 10, 2001. B. CRITICAL ISSUES To maintain the schedule for the redevelopment in the area formerly known as Interchange West, the timing of the construction of the Replacement of Penn Avenue Bridge Project is critical. Bids for the demotion and site clearance at 7620 Penn Avenue South and 7744 Penn Avenue South were opened at 10 a.m. on Monday, August 27, 2001. C. FINANCIAL • The project is contained in the adopted 2001 Capital Improvement Budget. Funding for the complete project comes from three principal sources: 1) $14 million from the Best Buy Company ($7 million of tax increment financing bonds and a grant of $7 million); 2) $8.5 million from miscellaneous sources ($6.7 million in a Transportation Revolving Loan Fund (TREE) loan; $148,000 in State Trunk Highway funds, and in-kind staff contribution for construction administration valued at $1.52 million); and, 3) $7.4 million of Federal High Priority Project funds. Total project costs are $29.9 million of which construction costs are estimated to be $21.5 million. D. LEGAL • The two subject properties are in the condemnation process. • The City Attorney will be present at the Council Meeting to answer questions. IV. ALTERNATIVE RECOMMENDATION(S~ • Award to another bidder. • The Council may choose not to award the contract and ask to rebid the contract. This could delay the completion of the Penn Avenue Bridge and/or add additional costs to the Bridge Project. City Staff does not believe that a better contract price would be received by rebidding. V. ATTACPIMENTS • Bid Minutes/Tabulation VI. PRINCIPAL PARTIES EXPECTED AT MEETING None. CJ CITY OF RICHFIELD, MINNESOTA . Bid Opening April 27, 2001 10:00 a.m. 2001 Demolition and Site Clearing-7620 and 7744 Penn. Avenue City Project No. 401-30-521 Pursuant to requirements of Resolution No. 1015, a meeting of the Administrative Staff was called by Nancy Gibbs, City Clerk, who announced that the purpose of the meeting was to receive, open and read aloud bids for 2001 Demolition. and Site Clearing for 7620 and 7744 Penn Avenue, as advertised in the official newspaper on August 15, 2001. Present: Nancy Gibbs, City Clerk George Atkinson, Public Works Director Representative Cheryl Krumholz, City Manager Representative • The following bids were submitted and read aloud: Bidder's Name/City Bid Security Total Bid Amount D. C. Enterprise Inc. of Northern MN 5% Bid Bond $ 288,220.00 Carl Bolander & Sons St. Paul, MN 5% Bid Bond $ 254,320.00 Kellington Construction Corcoran, MN 5% Bid Bond $ 453,175.34* *Denotes corrected figure The City Clerk announced that the bids would be tabulated and considered at the September 10, 2001 City Council Meeting. Nancy Gibbs City Clerk • r~ l~ AGENDA SECTION: AGENDA ITEM # REPORT # STAFF REPORT CITY COUNCIL MEETING DAWN WEITZEL HUMAN RESOURCES MANAGER NAME, TITLE • SEPTEMBER 10, 2001 CONSENT 7C 224 REPORT PREPARED BY: REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: s ITEM FOR COUNCIL CONSIDERATION: Consideration of a resolution approving an amendment to the 2001-2002 labor contract with the International Union of Operating Engineers, Local 49. I. RECOMMENDED ACTION: By Motion: Adopt the resolution designating an increase in the City's contribution toward health insurance premiums for the International Union of Operating Engineers, Local 49. II. BACKGROUND The City pays the full individual employee premium for those employees choosing single coverage, and for employees covered under the Local 49 contract, the City is contributing $455 for dependent care coverage. General Services, Management, Police Supervisors, 911 Dispatchers, and Police employees are currently receiving $475 for dependent health care coverage. It is recommended that the City increase its dependent coverage from $455 per month to $475 per month. These changes would affect those employees represented by the International Union of Operating Engineers; Local 49. The increase is requested so that STEVEN L. DEVICH ADM IST TIVE SERVICES DIRECTOR NAME, z 09101nslncrL&T these employees are offered the-same insurance contribution levels already given to most Union and Non-Union employees. III. BASIS OF RECOMMENDATION A. POLICY The City is a LOGIS board member and has participated in the process of receiving the best possible health insurance rates. • The City continues to provide adequate insurance protection for all employee groups. B. CRITICAL ISSUES • In order to remain competitive in today's job market, the City needs to make adjustments to its benefit's package. C. FINANCIAL • Thirty-nine full-time employees would- receive an increase in City contribution level to health insurance. This would cost the City approximately $780 a month. D. LEGAL • In order to provide the requested health insurance contribution changes, the City Council must approve the resolution designating City's contribution toward health insurance premiums for employees covered by the International Union of Operating Engineers, Local 49. IV. ALTERNATIVE RECOMMENDATION(S~ • The Council may take no action to increase the insurance premiums beyond the current 2001 funding level. • Defer discussion to another date. V. ATTACHMENTS • Resolution • Letter of Agreement VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None • RESOLUTION NO. • RESOLUTION DESIGNATING CITY'S CONTRIBUTION TOWARD HEALTH INSURANCE PREMIUMS FOR EMPLOYEES COVERED BY THE INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 49 WHEREAS, the hospital-medical/surgical group health insurance plan is available from the LOGIS Health Insurance Program for City employees and their families; and WHEREAS, the City of Richfield and IUOE Local 49 have a signed bargaining agreement covering a three year period ending December 31, 2002, and WHEREAS, the labor agreement covers all terms and conditions of employment including the City contribution for health insurance. benefits, and WHEREAS, the City has historically provided the same level of health insurance contribution to all eligible City employees, both union and non-union, and WHEREAS, the City desires to maintain such a position of equity, and WHEREAS, the current health insurance benefit for IUOE Local 49 employees is $20 per month below the $475 contribution given to most other City employee groups, and • WHEREAS, the City Council is required to determine by resolution the City's contribution toward the premium for employee group insurance coverages. NOW, THEREFORE, BE IT RESOLVED that the City shall contribute a maximum of $475 per month for family health insurance, and in any event, said contributions shall not exceed the cost of single coverage for employees selecting that option. Such contributions shall be for coverage effective October 1, 2001. BE IT FURTHER RESOLVED that the City Council shall determine the City's contribution toward insurance premiums for all organized employee groups. by the adoption of the appropriate resolutions concerning labor contracts with the respective organized employee groups. Adopted by the City Council of the City of Richfield, Minnesota this 10th day of September 2001. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk • • LETTER OF AGREEMENT BETWEEN THE CITY OF RICHFIELD AND THE INTERNATIONAL UNION OF OPERATING ENGINEERS (IUOE) LOCAL N0.49, AFL-CIO The above named parties hereby agree to'administer the provisions of Article 26 - Article 26.1 -Insurance, in accordance with the terms set forth below. The terms of this Agreement are as follows: For the months of October through December the Employer shall contribute up to a maximum'of four hundred seventy-fi~ae dollars. ($475) per month per employee for group health insurance including dependent coverage for calendar year 2001. The undersigned do hereby agree this ~ day of ~ , 2001. For the Union: Lo,,,~-Cr. ,~~~~- . i • AGENDA SECTION: CONSENT AGENDA ITEM # 7 B REPORT # 2 2 3 STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 10, 2001 REPORT PREPARED BY: REPORT PRESENTER: 70HN STARK, COMMUNITY DEVELOPMENT MANAGER NAME, TITLE BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE • DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of an Agreement identifying the uses for Tax Increment Financing (TIF) in the Interchan a West area. I. RECOMMENDED ACTION: By Motion: Approval of the attached Agreement identifying the uses for Tax Increment Financin TIF in the Interchan a West area. II. BACKGROUND The specific and exclusive purposes for which tax increment financing (TIF) to be generated by development in the Interchange West Redevelopment Area are identified in the following documents: • The Redevelopment Plan and TIF Plan for the Interchange West area (approved, as modified, by the Richfield City Council and HRA); • The Contract for Private Development for the Interchange West area (approved, as modified, by the Richfield HRA), and; • The Tax Increment Pledge Agreement for the Penn Avenue Bridge Bonds (approved by the Richfield City Council and HRA) 0910tif These documents, among other purposes, identify the uses which are eligible for tax • increment financing in this area as: • Public Redevelopment Costs as identified in the Redevelopment Plan and the TIF Plan for the Interchange West area; • Payment of principal and interest on the Penn Avenue Bridge Bonds; • Payment for administrative costs incurred by the City of HRA related to the project, and; • The creation of a Housing Trust Fund. The purpose of the attached agreement is to confirm, in a single document, the eligible uses for the tax increment to be generated in the Interchange West Redevelopment Area. No commitments are being modified in any way by this Agreement. III. BASIS OF RECOMMENDATION A. POLICY The Redevelopment Plan and TIF Plan for the Interchange West area, the Contract for Private Development for the Interchange West area and the Tax Increment Pledge Agreement for the Penn Avenue Bridge Bonds all have some reference to the eligible uses for the TIF to be generated by the Best Buy Development. A ISSUES j. CRITIC L • N/A C. FINANCIAL • The attached Agreement confirms financial commitments for tax increment in the Interchange West area. These commitments are already established. D. LEGAL • City and HRA legal counsel drafted the Agreement under consideration. IV. ALTERNATIVE RECOMMENDATION(S~ Do not approve the Agreement identifying the uses for Tax Increment Financing (TIF) in the Interchange West area. V. ATTACFIMENTS • Agreement identifying the uses for Tax Increment Financing (TIF) in the Interchange West area. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Legal counsel • AGREEMENT This Agreement is made and entered into as of this day of , 2001, by and between the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) and the City of Richfield, Minnesota (City). This Agreement relates to the use of certain funds of the HRA in connection with the Richfield Redevelopment Project Area (Project Area} established by the HRA and the Interchange West and Lyndale Gateway Tax Increment Financing District (TIF District) established by the HRA and the .City within the Project Area, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1791, the Tax Increment Financing Act (Act). The City and the HRA have duly adopted a redevelopment plan for the Project Area (Redevelopment Plan) and a tax increment financing plan (TTF Pian) for the TIF District. In consideration of the premises and the mutual undertakings of the parties HRA and City agree as follows: Section 1. Back ound. 1.01. Puistlant to the Act, the HRA anticipates receiving substantial amounts of tax incremerns (Tax Increments) from the TIF District. 1.02. The Tax Increments have been programmed by the HRA a>~ City to be used for the following purposes authorized by the Act: a) the Public Redevelopment Costs associated with the TIF District and the Project Area as idernified in the Redevelopment Plan and the TIF Plan;. b) the scheduled payment of principal and irnerest on the City's General Obligation Tax Increment Bonds, Series 2001A (Bonds) and other similar bonds issued by the City for Public Redevelopment Costs in the Project Area all as embodied in a certain Tax Increment Pledge Agreement between City and HRA, dated March 26, 2001 (Pledge Agreement); DJK 200604v1 • c) the payment by the HRA to the City of charges for administrative services rendered by City to HRA; and d) the creation and manrtenance of a Housing Trust Fund to be used by the HRA to assist in the construction and financing of replacement housing in the Project Area. 1.03. It is reasonably expected by the HRA and the City that 100% of the Tax Increments will be necessary to carry out the purposes of clauses a) through d) of Section 1.02 and will in fact be expended solely for those Purposes. 1.04. The f iRA agrees with and pledges to the City: that it will not use the Tax Increments for any purposes other than: a) the purposes set out in Section 1.02; b) any purpose authorized by the Act and embodied in a duly adopted modification of the TIF Plan or the Redevelopment Plan. • IN WITNESS WHEREOF, the HRA and the Ci have caused the Bement to be executed tY ~' by their properly authorized officers as of the date first written above. CITY OF RICHFIELD,I4~IINNESOTA 13y Mayor By. city Manager naxaoo6oa~~ r~ LJ AGENDA SECTION: CONSENT AGENDA ITEM # 7A REPORT # 222 STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 10, 2001 REPORT PREPARED BY: CHERYL KRUMHOLZ, ADMIN. ASST. NAME, TITLE REPORT PRESENTER: SAMANTHA ORDUNO, CITY MANAGER NAME, 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 8, 2001. I. RECOMMENDED ACTION: By Motion: Approve the City of Richfield official designation of Mayor Martin J. Kirsch as the ~oting delegate and Mayor Pro Tempore Suzanne Sandahl as alternate voting delegate for the National League of Cities annual Congress of Cities business meeting on December 8, 2001. II. BACKGROUND The National League of Cities (NLC) annual Congress of Cities conference is December 4-8, 2001 in Atlanta, GA. The annual business meeting will be held on December 8. 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 Informer summarizing proposed National Municipal Policy amendments and proposed resolutions. 0910n1c The Mayor, Council Members and City Manager will be attending the annual • conference. Therefore, it is appropriate to approve the designations as presented in the Recommended Action section of this Staff Report. 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 approved as soon as possible. • 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 approve the proposed voting delegate designation. V. ATTACHMENTS • N/A VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A