04-09-01 Agenda• CITY OF RICHFIELD, MINNESOTA
MONDAY, APRIL 9, 2001
SPECIAL CITY COUNCIL STUDY SESSION
COUNCIL CHAMBERS
5:30 P.M.
Call to order
Roll call
1. Annual meeting with Advisory Board of Health -
2. Meeting with Richfield Community Human Services Planning Council is canceled at
their request
3. Discussion of Champp's compliance issues
4. Discussion of ordinance code enforcement policies
5. Discussion of enforcement of on-sale liquor policies/compliance checks
Adjournment
REGULAR CITY COUNCIL MEETING
COUNCIL CHAMBERS
7:00 P.M.
RICHFIELD CITY HALL
6700 PORTLAND AVENUE
AGENDA
INTRODUCTORY PROCEEDINGS
Call to order
Pledge of Allegiance
Roll call
Approval of minutes of (1) Regular City. Council Meeting of March 26, 2001; (2) Special
City Council Meeting of March 28, 2001; and (3) Special City Council Meeting of March
31, 2001
PRESENTATION
• 1. Presentation from Kathleen Anderson, representative from Congressman Martin O.
Sabo's office
. 2. Council discussion items
Notes:
3. Opportunity for citizens to address the Council on items not on the agenda
(Limited to 15 minutes.) Speakers are asked to keep their comment period to
three minutes to allow sufficient time for others. Individuals who wish to
:.address the Council are-.requested #o-,pr-int heir name•and>-address.~on-tfie
Speaker's Register #or the record. - - - - - -
Notes:
AGENDA APPROVAL
. 4. Council approval of agenda
CONSENT CALENDAR
5. 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 fisted on the Consent
Calendar are recommended for approval.
A. Consideration of approval of lease agreement with Sprint Spectrum for antenna
space on radio tower at City Hall S.R. No. 86
B. Consideration of approval of resolution regarding conditional use permit to allow
Qwest Wireless to construct Commercial Wireless Telecommunication Service tower
at 6244 Knox Avenue (Madison Park) S.R. No. 87
C. Consideration of approval of renewal contract with Hennepin County for purchase of
assessment services for August 1, 2001 through July 31, 2005 S.R. No. 88
D. Consideration of approval of contract between City of Richfield and Auction
Broadcasting Company Minneapolis for sale of forfeited vehicles S.R. No. 89
E. Consideration of approval of bid minutes/tabulation. and award of contract to Allied
Blacktop, Inc. for sealcoating work in 2001 in amount of $158,873.44 S.R. No. 90
F. Consideration of approval of award of contract to Sandman Enterprises for
sandblasting and painting of waterslide at Richfield pool in amount of $18,648 S.R.
No. 91
Notes:
PUBLIC HEARINGS
6. Continuation of public hearing and second -reading of cable television.-ordinance for
Everest Connections Corporation .(continued from March 12, 2001}
Staff Report.No. 92
Notes:
7. Public hearing regarding source of funding for burying overhead utility lines-along
Portland Avenue from water treatment plant to American Legion Club and along 66th
Street from 11th Avenue to municipal swimming pool -action to be tabled
Staff Report No. 93
Notes:
RESOLUTIONS
8. Consideration of resolution urging Metropolitan Airports Commission to extend its
current Part 150 Sound Insulation Program to 60-64 DNL contour and continue to work
collaboratively with airport-affected communities
Staff Report No. 94
Notes:
9. Consideration of resolution authorizing condemnation of 7544 Oliver Avenue, 2006 West
76th Street and 1700 West 78th Street for widening of 76th Street from I-35W to Penn
Avenue Project
Staff Report No. 95
Notes:
•
ADMINISTRATIVE REPORTS AND OTHER BUSINESS
10. Consideration of Council receipt of unaudited 2000 Financial Report
Staff Report No. 96
Notes:
AIRPORT BUSINESS
11. Airport status report
Notes:
COUNCIL CHOICE
Notes:
12. Claims and payrolls
13. Adjourn to Special City Council Closed Executive Session in Executive Conference
Room to discuss:
• Rich Acres Golf Course proposed settlement
• .New Ford Town/Rich Acres park condemnation litigation
14. Reconvene Regular City Council Meeting
15. Consideration of Rich Acres Golf Course settlement
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.
AGENDA SECTION:
AGENDA ITEM #
REPORT #
J STAFF REPORT
ADMIN. REPORTS
10
96
CITY COUNCIL MEETING
APRIL 9, 2001
REPORT PREPARED $Y:
CHRIS REGIS, FINANCE MANAGER
NAME, TITLE
REPORT PRESENTER:
CHRIS_ REGIS, .FINANCE MANAGER
NAME,
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY CITY MANAGER:
ITEM FOR. COUNCIL CONSIDERATION:
Consideration of receipt of unaudited 2000 Financial Report.
I. RECOMMENDED ACTION:
B Motion: Council recei t of the unaudited 2000 Financial Re ort.
II. BACKGROUND
The annual Financial Report for the period ended December 31, 2000 has been
completed by the Administrative Services Department. The audited :financial report
is not available at this time. The audit began March 12, 2001.
It is anticipated that the audit will be complete by the end of April or early May. As is
the customary practice the City's auditors will give a detailed presentation to the
Council at an upcoming Study Session.
III. BASIS OF RECOMMENDATION
A. POLICY
i The Richfield City Charter requires the Financial Report. to be
submitted to the City Council for fiscal year-end information by April 10
of each year. The report is submitted for official receipt at the April 9,
2001 City Council meeting.
041000FinancialReport
B. CRITICAL ISSUES
• N/A
~C. FINANCIAL
• The attached summary report reflects the performance of the General
Fund, Municipal Liquor Fund, Utility Funds, and the Recreation Fund.
• Audited financial reports for 2000 will not be available until Mayor
June 2000.
D. LEGAL
• City Charter provides that the Financial Report of the City be
submitted to the City Council by April 10 of each year.
IV. ALTERNATIVE RECOMMENDATION(S)
• The City Council could request staff to make a more detailed presentation of
the unaudited 2000 Financial Report at this time or at a future Council Study
Session. However, a detailed presentation of the audited report will be
presented in May or June 2001.
V. ATTACHMENTS
• Financial Report Summary for 2000
• General Fund Financial Statements
• City Enterprise Funds Combined Financial Statements
• Municipal Liquor Fund Financial Statements
• Utility Funds Financial Statements
• Recreation Enterprise Fund Financial Statements
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
•
FINANCIAL REPORT SUMMARY
FOR YEAR ENDED DECEMBER 31, 2000
The following is a summary of fund highlights for the General Fund, Municipal Liquor Fund, Water and
Wastewater Fund, Storm Sewer Utility Fund, and the Recreation Fund. A more detailed, audited report
report will be presented to the City Council after the audit has been completed in May 2001.
General Fund
Revenues
Expenditures
Net Transfers
Increase(decrease) to Fund .Balance
Fund Balance, 12/31/00
2000 Actual
$ 14,949,370
15,317,249
477,884
110,005-
$ 3,989,098
2000 Budget
$ 14,836,180
15,408,510
572, 330
$ 3,879,093
1999 Actual
$ 14,896,223
14,447,541
(434,200):
14,482
$ 3,879,093.
As of December 31, 2000, the City General Fund has a fund balance of $3,989,098, an increase
of $110,005 from December 31, 1999. The year-end fund balance is designated for working capital
and is necessary to meet expenditures until property taxes are collected in July 2001.
The General Fund in 2000 performed. up to budget expectations. Revenues before transfers exceeded
budget by $113,190, while expenditures before transfers were under budget. by $91,000. This performance
can be attributed to better than budget performance in intergovernmental revenues, charges for services,
and miscellaneous revenues and with regards to expenditures, departments working to keep spending
~nrithin budget levels.
In 2000, the General Fund had transfers in of $608,469, and transfers out of $130,585 for a net transfer
in amount of $477,884.
Municipal Liquor Stores
Revenues
Expense
Net Transfers
Net Income (Loss)
Retained Earnings, 12/31/00
2000 Actual
$ 9,133,209
8,431,107
(516,850).
185,252
$ 2,709,252
2000 Budget
$ 9,285,790
8,578,630
(516, 850)
190,310
$ 2,714,905
1999 Actual
$ 8,793,011
8,144,405
(681,450)
(32, 844)
$ 2,524,595
In 2000, the four Richfield Liquor Stores generated $9,133,209. in gross revenues. Of this total, .gross
sales of merchandise was $9,079,059, an increase of $323,700 over 1999. The Gross Profit on sales
for 2000 was 23%, a slight increase over 1999.
The Liquor Fund, in 2000, continued the transfer of profits to the Liquor Contribution Fund for park capital
improvements. The amount transferred in 2000 was $330,000, with $625,000 planned for 2001. In
addition, the fund. also transferred to the General Fund $186,850 for administrative costs, public safety
ervices and payments in lieu of taxes.
Water & Sanita~ Sewer Utility Fund
~evenues
Expense
Net Income
Retained Earnings, 12/31/00
2000 Actual
$ 5,240,687
4,311,138
929,549
$ 9,136,174
2000 Budget
$ 5,511,220
4,360,930
1,150,290
$ 9,356,915
1998 Actual
$ 4,922,852
4,430,030
492, 822
$ 8,206,625
In 2000, the Water Utility operation generated $2,234,000 in operating revenues, and increase of $256,000
over 1999 revenues. This increase is a result of two factors. The first is that 1999 was a relatively dry year
which resulted in more water being pumped and sold by the utility. In line with this, was that rates were
increased in 2000 by $0.10 per thousand gallons. Finally, the operating expenses for the utility decreased
by $90,000 in 2000 as compared to 1999. The Water Utility ended 2000 with operating income of $116,000.
The Wastewater Utility operation had another good year in 2000. Although revenues decreased by $55,000
as compared to 1999, the operation also managed to decrease expenses, with the largest decrease
coming from MCES charges. The Wastewater Utility realized net operating income of $567,000.
Storm Sewer Utility Fund 2000 Actual 2000 Budget 1999 Actual
Revenues- $ 789,039 $ 849,000 $ 768,855
Expense 608,068 614,920 583,617
Net Transfers 91,267 - 370,598
Net Income 272,238 234,080 555,836:
~etained Earnings, 12/31/00 $ 3,725,873 $ 3;687,715 $ 3,453,635
Revenues for the Storm Sewer fund i ncreased by $47,000 in 2000 over 1999 . This increase in revenues
can be traced to a $0.25 rate increase that took effect in-2 000. Operating expenses in 2000 increased by
approximately $30,000 over 1999..
Recreation Fund 2000 Actual 2000 Budget 1999 Actual
Revenues $ 1,310,660 $ 896,890 $ 2,421,325
Expense 1,557,443 986,420 2,079,362
Net Transfers 449,670 100,000 (421,649)
Net Income 202,887 10,470 (79,686)
Retained Earnings, 12/31/00 $ 1,737,967 $ 1,629,099 $ 1,618,629
The performance of the Recreation Fund reflects the loss of Rich Acres Golf Course which was turned
over to the Metropolitan Airports Commission on April 1, 2000. The Recreation Fund comprises the ice
arena, the swimming pool and special facilities (miniature golf, concessions, farmers market) operations.
The activity reflected in the golf course fund- relates to final personnel costs and costs related to closing
the course. The remaining. Recreation Fund operations, the ice arena, swimming pool and special
facilities operations ended 2000 with operating losses of $164,666, $48,280, and $21,913 respectively..
During 2000 interfund loans owed by the golf course, swimming pool and special facilities were forgiven
or paid off using residual golf course assets.
Summary
his financial summary includes the highlights of the overall financial results for the City of Richfield for
the year ended December 31, 2000. Financial reports for each fund are attached to this. letter.
A comprehensive review of the 1999 financial operations will be presented to the City Council after
the completion of the annual .audit by the City's independent auditors.
In 2000, the General Fund performed up to budget expectations. This resulted in a net increase to fund
balance of $110,005. The Municipal Liquor operation continues to perform well. The operation increased
gross sales and gross profit on sales in 2000. The Water and Wastewater Utility operation had another
positive year in 2000. The Water utility portion of the operation showed income from operations in 2000
for the first time in several years. The Recreation Fund operations will continue to be monitored and
reviewed during 2001. During 2000 procedures were put in place by Council to help these operations
financially by using interest earnings from residual golf course assets if necessary.
CITY OF RICHFIELD, MINNESOTA
GENERAL FUND
COMPARATIVE BALANCE SHEET
December 31, 2000 and 1999
ASSETS 2000
Cash and investments $ 5,883,624
Receivables:
Taxes 77,496
Special assessments 6,753
Accounts 71,685
Due from component unit -
Due from other governments 54,568
Prepaid Items 59,424
Total Assets $ 6,153,550
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
• $ 260,438
Accrued salaries and employee benefits payable 1,754,409
Due to other governments 178
Due to component unit -
Deferred revenue 149,427
Total Liabilities 2,164,452
Fund Balance -
Reserved for prepaid items 59,424
Unreserved:
Designated for state aid reductions 375,145
Designated for working capital 3,554,529
3,989,098
Total Liabilities and Fund Balance $ 6,153,550
FORM F
1999
$ 5,614,857
72,465
7,294
84,027
58,868
50,683
10,000
$ 5,898,194
$ 265,237
1,628,783
46,055
3,451
75,575
2,019,101
10,000
353,568
3,515,525
3,879,093
$ 5,898,194
•
Form F-1
CITY OF RICHFIELD, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHA NGES
. IN FUND BALANCE -BUDGET AND ACTUAL
For the Fiscal Year Ended December 31, 2000-
With Comparative Actual Amounts for the Year Ended December 31, 1999
2000
Over
Final (Under) 1999
Budget Actual Budget Actual
Revenues:
Taxes $ 6,203,310 $ 6,268,406 $ 65,096 $ 6,194,162
Licenses and permits 887,000 806,275 (80;725) 1,033,282
Intergovernmental revenue 6,509,240 6,516,412 7,172 6,370,463
Charges for services 837,260 894,223 56,963 892,410
Fines and forFeits 229,000 215,439 (13,561) 233,672
Miscellaneous revenues 170,370 248,615 78,245 172,234
Total Revenues 14,836,180 14,949,370 113,190 14,896,223
Expenditures:
Legislative/Executive 668,780 654,566 (14,214) 677,114.
Administrative services 998,950 987,158 (11,792). 954,925
Public safety 6,682,420 6,680,663 (1,757) 8,108,546
Fire 2,028,210 2,023,744 (4,466) -
Community development 252,380 226,630 (25,750) 186,722
Public works 3,309,620 3,3D3,528 (6,092) 3,127,422
• Recreation service 1,468,150. 1,440,960 (27,190): 1,392,812
Total Expenditures 15,408,510 15,317,249 (91;261) 14,447,541
Excess (Deficiency) of Revenues
over Expenditures (572,330) (367,879) 204,451 448,682
Other Financing Sources (Uses):
Operating transfers in:
Special Revenue Funds 224,120 192,220 (31,900) 30,000.
Debt Service Fund 210,000 210,000 - 205,000
Enterprise Funds 204,750 206,249 1,499 259,850
Operating Transfers Out: -
Special Revenue Funds (20,100) (19,495) 605 (15,000)
Capital Project Funds - - - (30,000)
Internal Service Funds (41.,470) (41,470) - (50,000)
Component Unit (4,970) (69,620) (64,650) (834,050)
Net Other Financing
Sources (Uses) 572,330 477,884 (94,446) (434,200)
Excess of Revenues and Other
Financing Sources over
Expenditures and Other
Financing Uses - 110,005 110,005 14,482
Fund Balance -January 1 3,879,093 3,879,093 - 3,864,611
• Fund Balance -December 31 $ 3,879,093 $ 3,989,098 $ 110,005 $ 3,879,093
CITY OF RICHFIELD, MINNESOTA Form F-2
GENERAL FUND
• SCHEDULE OF REVENUES COMPARED TO BU
For the Year Ended December 31, 2000 DGET
With Comparative Actual Amounts for the Year Ended December 31, 1999
2000
Over
Final (Under) 1999
Budget Actual Budget Actual
Taxes:
Current ad valorem $ 4,969,1,20 $ 5,037,233 $ 68,113 $ 5,039,270.
Fiscal disparities 1,234,190 1,231,173 (3,017) 1,154,892
Total Taxes 6,203,310. 6,268,406 65,096 6,194,162
Licenses and Permits:
Business licenses 173,500 190,086 16,586 152,904
Nonbusiness licenses and permits 713,500 616,189 (97,311) 880,378
Total Licenses and Permits 887,000 806,275 (80,725) 1,033,282
Intergovernmental Revenues:
Federal
Civil defense reimbursement 5,000 4,902. (98) 5,671
Grants
State: 83,500 41,650 (41,850) 168,334
Local government aid 3,650,550 3,648,829 (1,721) 3,501,650
Low Income Housing Aid 41,570 41,988 418 41,740
Fire State Aid 104,000 114,837 10,837 110,760
Grants -other - 5,024 5,024 6,714
Homestead credit 1,905,780 1,906,813 1,033 1,848,816
Police State Aid 300,000 317,211 17,211 .302,582
Law officer training 14,000 8,979 (5,021) 14,485
State-aid street maintenance 238,340 266,901 28,561 239,692
County -
Community health services 166,500 159,278 (7,222) 130,019
Total I me rg ove rn m e nta l
Revenue 6,509,240 6,516,412 7,172 6,370,463
Charges for Services:
General Government
Deputy Registrar
Public Safety
Park and Recreation
Nature Center
Community Center
Total Charges for Services
32,830 39,626 6,796 40,147
300,000 312,522 12,522 319,388
250,350 276,825 26,475 316,096
118,280 129,643 11,363 97,796
37,630 39,336 1,706 33,226
98,170 96,271 (1,899) 85,757
$ 837,260 $ 894,223. $ 56,963 $ 892,410
CITY OF RICHFIELD, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES COMPARED TO BUDGET
• For the Year Ended December 31, 2000
With Comparative Actual Amounts for the Year Ended December 31, 1999
Fines and Forteits:
Municipal court fines
Forteited bail
Highway patrol fines
Total Fines and Forteits
2000
Over
Final (Under)
Budget Actual Budget
$ 220,000 $
4,500
4,500
229,000
Form F-2
1999.
Actual
199,628 $ (20,372) $ 223,863
11,706 7,206 4,887
4,105 (395) 4,922
215,439 (13,561) 233,672
Miscellaneous Revenues:
Investment Income 131,000 176,426 45,426 121,007
Rent 1.2,770 16,332 3,562 16,947
Contributions 600 4,950 4,350 -
Recovery -damage to City property 8,000 17,626 9,626 7,824
.Other 18,000 33,281 15,281 26,456
Total Miscellaneous Revenues 170,370 248,615 78,245 172,234
Total Revenues $ 14,836,180 $ 14,949,370 $ 113,190 $ 14,896,223
•
CITY OF RICHFIELD, MINNESOTA Form F-3
GENERAL FUND
SCHE DULE OF EXPENDITURES COMPARED TO BUDGET
For the Year Ended December 31 , 2000
• With Comparative Actual Amounts for the Year En ded December 31, 1999
2000
Over
Final (Under) 1999
Budget Actual Budget Actual
GENERAL GOVERNMENT:
Mayor -Council:
Personnel services $ 36,340 $ 36,430 $ 90 $ 36,595
Other services and charges 57,190 54,860 (2,330) 66,556
Capital outlay - - - 3,390
Total 93,530 91,290 (2,240) 106,541
Other Agencies:
Senior Outreach 9,160 9,160 - 1,000
Senior Inform and Referral - - 8,890
Cornerstone Advocacy 14,550 14,550 - 13,060
Storefront/Youth Action 62,000 62,000 - 61,900
Youth Net 1,000 1,000 - 1,000
VEAP 5,000 5,000 - 4,000
South Hennepin Regional 20,300. 20,300 ~ 19,710
•
Total 112,010 112,010 109,560
Human Services:
Personnel services 45,530 46,391 861 49,612
Other services and charges 9,100 7,493 (1,607) 10,774
Total 54,630 53,884 (746) 60,386
City Manager:
Personnel services 139,780 171,245 31,465 74,464
Other services and charges 36,080 34,165 (1,915) 75,549
Total 175,860 205,410 29,550 150,013
Legal:
Other services and charges 232,750 191,972. (40,778) 250,614
Total 232,750 191,972 (40,778) 250,614
Total General Government $ 668,780 $ 654,566 $ (14,214) $ 677,114
•
CITY OF RICHFIELD, MINNESOTA
GENERAL FUND
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET
For the Year Ended December 31, 2000
• With Comparative Actual Amounts for the Year Ended December 31, 1999
2000
ADMINISTRATIVE SERVICES:
Administration:
Personnel services
Other services and charges
Total
Human Resources:
Personnel services
Other services and charges
Total
Finance:
Personnel services
Other services and charges
Total
City Clerk:
• Personnel services
Other services and charges
Capital outlay
Total
Assessing:
Personnel services
Other services and charges
Total
Total. Administrative Services
PUBLIC SAFETY:
Administrative Support Services:
Personnel services
Other services and charges
Total
Final
Budget Actual
Form F-3
Over
(Under) 1999
Budget Actual
$ 96,660. $ 101,287 $ 4,627 $ 94,951
51,060 52,624 1,564 50,746
147,720 153,911 6,191 145,697
52,670 51,373 (1,297) 32,089
34,420 42,119 7,699 36,475
87,090 93,492 6,402 68,564
172,560 164,106 (8,454) 165,415
55,130 47,811 (7,319) 45,740
227,690 211,917 (15,773) 211,155
227,220 221,662 (5,558) 249,304
32,490 28,047 (4,443) 34,852
6,000 6,283 283 -
265,710 255,992 (9,718) 284,156
67,940 72,720 4,780 63,513
202,800 199,126 (3,674) 181,840
270,740 271,846 1,106 245,353
$ 998,950 $ 987,158 $ (11,792) $ 954,925
$ 319,050 $ 317,169 $ (1,881) $ "298,727
382,150 364,510 (17,640) 313,483
701,200 681,679 (19,521) 612,210
CITY OF RICHFIELD, MINNESOTA Form F-3
GENERAL FUND
SCHEDU LE OF EXPENDITURES COMPARED TO BUDGET
For the Year Ended December 31, 2000
• With Comparative Actual Amounts for the Yea r Ended December 31, 1999
2000
Over
Final (Under) 1999
Budget Actual Budget Actual
PUBLIC SAFETY: (Continued)
Police Protection:
Personnel services 4,013,670 4,081,273 67,603 2,918,253
Other services and charges 1,179,540 1,263,020 83,480 468,783
Capital outlay 251,420 143,413 (108,007) -
.Total 5,444,630 5,487,706 43,076 3,387,036
Police Services:
Personnel services - - - 1,067,703
Other services and charges - - - 585,584
Capital outlay - - 51,141
Total - - - 1,704,428
Inspection:
Personnel services 446,990 444,289 (2,701) 389,880
Other services and charges 43,600 31,758 (11,842) - 28,888
Capital Outlay - - - 7,217
• Total 490,590 476,047 (14,543) 425,985
Emergency Services:
Personnel services 12,200 8,051 (4,149) 7,248
Other services and charges 33,800 27,180 (6,620) 27,445
Capital outlay - - - 10,443
Total 46,000 35,231 (10,769) 45,136
Total Public Safety $ 6,682,420 $ 6,680,663 $ (1,757) $ 6,174,795
FIRE:
Fire Protection:
Personnel services 1,809,040 1,807,837 (1,203) 1,772,902
Other services and charges 171,170 170,332 (838) 157,050
Capital outlay ~ 48,000 45,575 (2,425) 3,799
Total 2,028,210 2,023,744 (4,466) 1,933,751
Total Fire 2,028,210 2,023,744 (4,466) 1,933,751
COMMUNITY DEVELOPMENT:
Administration:
Personnel services $ 167,860 $ 142,587 $ (25,273) $ 116,922.
Other services and charges 78,020 78,176 156 64,826
Capital outlay 6,500 5,867 (633) 4,974
Total 252,380 226,630 (25,750) 186,722
Total Community Development $ 252,380 $ 226,630. $ (25,750) $ 186,722
CITY OF RICHFIELD, MINNESOTA Form F-3
GENERAL.FUND
SCHEDULE OF EXPENDITURES COMPARED TO BUDGET
For the Year Ended December 31 , 2000
• With Comparative Actual Amounts for the Year En ded December 31,1999
2000
Over
Final (Under) 1999
Budget Actual Budget. Actual
PUBLIC WORKS:
Administration:
Personnel services $ 127,390 $ 104,247 $ (23,143) $ 136,121
Other services and charges 41,210 52,078 10,868 28,068
Total 168,600 156,325 (12,275) 164,189
Engineering:
Personnel services 122,930 138,647 15,717 138,404
Other services and charges 51,150 62,119 10,969 47,974
Total 174,080 200,766 26,686 186,378
Streets:
Personnel services 519,470 495,969 (23,501) 450,379
Other services and charges 1,071,240 1,061,475 (9,765) ~ 962,683
Total 1,590,710 1,557,444 (33,266). 1,413,062
Government Buildings:
Personnel services 256,570 274,501 17,931 307,747
• Other services and charges 148,960 117,783 .(31,177) 99,168
Total 405,530 392,284 (13,246) 406,915
Park Maintenance:
Personnel services 395,530 401,220 5,690 369,600
Other services and charges 301,310 306,651 5;341 288,615
Total 696,840 707,871 11,031 658,215
PUBLIC WORKS
Forestry:
Personnel services 155,180 161,431 6,251 160,059
Other services and charges 108,680 116,443 .7,763 116,474
Capital outlay 10,000 10,964 964 22,130
Total 273,860 288,838 14,978 298,663
Total Public Works $ 3,309,620. $ 3,303,528 $ (6,092) $ 3,127,422
RECREATION SERVICES:
Wood Lake Nature Center:
Personnel services $ 290,190 $ 289,671 $ (519)_ $ 276,599
Other services and charges 61,250 62,798 1,548 56,147
Capital outlay 3,000 - - -
• Total 354,440 352,469 1,029 332,746
CITY OF RICHFIELD, MINNESOTA Form F-3
GENERAL FUND
SCHEDU LE OF EXPENDITURES COMPARED TO BUDGET
For the Year Ended December 31, 2000
• With Comparative Actual Amounts for the Year Ended December 31, 1999
2000
Over
Final (Under) 1999
RECREATION SERVICES (continued) Budget Actual Budget Actual
Recreation:
Personnel services 398,900 412,503 13,603 379,629
Other services and charges 162,990 166,954 3,964. 196,320
Capital Outlay 5,000 - (5,000) 5,436
Total 566,890 579,457 12,567 581,385
Community Center:
Personnel services 394,040 372,068 (21,972) 343,134
Other services and charges 152,780 136,966 (15,814) 127,592
Capital outlay - - - 7,955
Total 546,820 509,034 (37,786) 478,681
Total Recreation Services $ 1,468,150 $ 1,440,960 $ (27,190) $ .1,392,812
Total Expenditures $ 15,408,510 $ 15,317,249 $ (91,261) $ 14,447,541
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CITY OF RICHFIELD, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES AND EXPENSES, AND
CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 2000
Municipal Water & Sewer
Liquor Fund Utility Fund
Operating Revenues:
Sales $ 9,079,059 $ 4,995,260
Less cost of sales (6,989,645) -
Net Operating Revenues 2,089,4 4 4,995, 60
Operating Expenses:
Sewer service charges - 1,640,472
Personal services 970,178 1,138,265
Other services and charges 351,407 1,071,413
Depreciation 101,558 460,988
Total Operating Expenses 1,423,143 4,3 3
Operating Income (Loss) 666,27 684,
Nonoperating Revenues (Expenses):
Intergovernmental revenue - -
Investment Income 20,063 234,362
Gain (loss) on disposal of fixed assets - -
Other revenues 15,768 11,065
Interest and fiscal charges - -
Net Nonoperating Revenues (Expenses) 35,8 1 45,427
Income (Loss) Before Operating Transfers 702, 2 9 9,549
Operating Transfers In:
Special Revenue Funds - -
Capital Projects Funds - -
Internal Service Funds - -
Operating Transfers Out:
General Fund (186,850) -
Special Revenue Funds (330,000) -
Capital Projects Funds - -
Net Operating Transfers In (Out) (5 ,850) -
Net Income (Loss) 185,252 929,549
Retained Earnings -January 1 2,524,595 8,206,625
Equity Transfer In (Out) - -
Retained Earnings -December 31 $ 2,709,847 $ 9,136,174
•
Storm Sewer Recreation Street
Utility Fund Fund Light Fund
$ 784,109 $ 823,011 $ -
- (21,474) -
AA f~A rA-1
130,583 605,960. -
191,720 579,058 -
214,418 211,583 -
5 ,72 9 ,601 -
47,3 5 5, 4) -
4,500 125,000
179,765
- (56,566) -
430 182,884 271
(71,347) (82,802) -
,4 7) 48,281 271
71 246,783).: 271
15,000 356,661 -
76,267 93,009 -
•
- - .(19,399)
91,267 449,670 9,399)
272,238
A IrA AAI~
$ 3,725,873
.202,887 (19,128)
1,618,629 19,128
(83,549) -
$ 1,737,967 $ -
FORM J-1
TOTAL
200 1 9
' $ 15,681,439
(7,011,119)
,670,320
$16,636,186
(6,873,955)
9,762,23
1,640,472
2,844,986
2,193,598
988,547
7,667,603
02,717
129,500
434,190
(56,566)
210,418
(154,149)
563,393
,566, 10
371,661
169,276
(206,249)
(330,000)
4,688
1,570,798
15,822,612
(83,549)
$ 17,309,861
1,677,926
3,194,640
2,420,130
889,796
8,182,492
1,57 ,739
222,753
(20,558).
101,259
(144,490);
5 64
,7 8,703
100,000
370,598
138,388
(259,850)
(500,000)
(660,037)
8 0,901)
927,802
14,941,902
(47,092)
$ 15,822,612
CITY OF RICHFIELD, MINNESOTA FORM J-4
MUNICIPAL LIQUOR FUND
COMPARATIVE BALANCE SHEET
December 31, 2000 and 1999
2000 1999
~~
.Current Assets:
Cash and cash equivalents $ 595,473 $ 337,176
Accounts receivable 2,000 2,205
Inventory 625,477. 567,290
Prepaid Items 13,130 15,864
Total Current Assets 1,236,080 922,535
Property and Equipment:
Land 499,188 499,188
Buildings 1,985,018 1,979,480.
Office equipment 18,052 18,052
Machinery and equipment 429,964 416,019
Other improvements 126,101 126,101
3,058,323 3,038,840
Less accumulated depreciation 1,156,113 1,054,555
Net Property and Equipment 1,902,210 1,984,285
Total Assets $ 3,138,290 $ 2,906,820
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable $ 223,012 $ 184,939
Accrued salaries and employee benefits payable 115,938 101,524
Due to other governments 89,493 94,126
Deferred Revenue - 1,636
Total Current Liabilities 428,443 382,225
Equity:
Retained earnings:
Unreserved 2,709,847 2,524,595
Total. Retained Earnings 2,709,847 2,524,595
Total Liabilities and Equity $ 3,138,290 $ 2,906,820
CITY OF RICHFIELD, MINNESOTA
MUNICIPAL LIQUOR FUND
• COMPARATIVE STATEMENT OF REVENUES, EXP ENSES, AND
CHANGES IN RETAINED EARNINGS
For the Years Ended December 31, 2000 and 1999
2000 1999
Operating Revenues:
Sales $ 9,079,059 $ 8,755,361
Less cost of sales (6,989,645) (6,763,047)
Net Operating Revenues 2,089,414 1,992,314
Operating Expenses:
Personnel services 970,178 927,807
Other services and charges 351,407 341.,140
Depreciation 101,558 96,492
Total Operating Expenses 1,423,143 1,365,439
Operating Income 666,271 626,875
Nonoperating Revenues (Expenses):
Investment Income 20,063 11,596
Other revenues 34,087. 26,054
Other expenses (18,319) (15,919)
Net Nonoperating Revenues 35,831 21,731
Income Before Operating Transfers 702,102 648,606
Operating Transfers Out:
General Fund (186,850) (181,450)
Contributions -Liquor Fund (330,000) (500,000)
Total Operating Transfers Out (516,850) (681,450}
Net Income (Loss) 185,252 (32,844)
Retained Earnings -January 1 2,524,595 2,557,439
Retained Earnings -December 31 $ 2,709,847 $ 2,524,595
FORM J-5
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CITY OF RICHFIELD, MINNESOTA
WATER AND SEWER UTILITY FUND
COMPARATIVE BALANCE SHEET
December 31, 2000 and 1999
ASSETS 2000
Current Assets:
Cash and cash equivalents
Receivables:
Service charges:
Billed
Unbilled services
Due from other governments
Inventory
Total Current Assets
Long-Term Assets -
Due from component unit
Total Long-Term Assets
Property and Equipment:
Land
Buildings
Office equipment
Machinery and equipment
Other improvements
Less accumulated depreciation
Net Property and Equipment
Total Assets
$ 4,645,091
1999
FORM J-6
$ 3,326,219
598,801 555,174
715,960 659,943
3,947 131,467
9,681 6,714
5,973,480 4,679,517
249,530 249,530
249,530 249,530
53,550 53,550
3,869,745 3,869,745
39,898 39,898.
4,710,249 4,653,189 `
7,992,320 7,955,983
16,665,762 16,572,365
7,502,449 7,041,460
9,163,313 9,530,905
15,386,323. 14,459,952
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable
Accrued salaries and employee benefits payable
Due to other governments
Total Current Liabilities
Equity:
Contributed capital
Property owners
Special assessments
City aid for construction
Federal grant
Total Contributed Capital
Retained earnings:
Unreserved
Total Equity
Total Liabilities and Equity
$ 79,062 $ 106,533
108,898 84,502
30,877 30,980
218,837 222,015
533,584
3,196,500
2,271,228
30,000
6,031,312
533,584
3,196,500
2,271,228
30,000
6,031,312
9,136,174 8,206,625
15,167,486 14,237,937
15,386,323 14,459,952
•
CITY OF RICHFIELD, MINNESOTA FORM J-7
WATER AND SEWE R UTILITY FUND
COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN RETA INED EARNINGS
For the Years Ended December 31, 2000 and 1999
2000 1999
Operating Revenues:
Sales and user fees $ 4,762,283 $ 4,576,247
Certification fees 6,874 6,000
Customer service charges 124,793 125,627
Sales of materials and supplies 1,108 1,207
Special Assessment 100,202 85,073
Total Operating Revenues 4,995,260 4,794,154
Operating Expenses:
Metropolitan Council Wastewater Services -
Sewerservice charges 1,640,472 1,677,926
Personnel services 1,138,265 1,104,987
Other services and charges 1,071,413 1,157,392
Depreciation 460,988 469,167
- Total Operating Expenses 4,311,138 4,409,472
Operating Income (Loss) 684,122 384,682
Nonoperating Revenues -
Deferred current value credit 5,123 10,037
Gain (loss) on disposal of fixed assets - (20,558)
Other Revenue 5,942 11,627
Investment Income 234,362 107,034
Total Nonoperating Revenues 245,427 108,140
Net Income (Loss) 929,549 492,822
Retained Earnings -January 1 8,206,625 7,760,895
Equity Transfers In(Out) - (47,092)
Retained Earnings -December 31 $ 9,136,174 $ 8,206,625
•
CITY OF RICHFIELD, MINNESOTA FORM J-8
STORM SEWER UTILITY FUND
COMPARATIVE BALANCE SHEET
December 31, 2000 and 1999
2000 1999
ASSETS
Current Assets: .
Receivables:
Service charges:
Billed
Unbilled services
Total Current Assets
Restricted Assets -
Cash and cash equivalents for debt service
Property and Equipment:
Office equipment
Machinery and equipment
Other improvements
Less accumulated depreciation
Net Property and Equipment
Total Assets
LIABILITIES AND EQUITY
Current Liabilities (Payable from Current Assets):
Accounts payable
Overdrafts Payable
Total Current Liabilities (Payable from Current Assets)
Current Liabilities (Payable from Restricted Assets):
Accrued interest payable
Bonds payable
Total Current Liabilities
(Payable from Restricted Assets)
Bonds payable
Total Liabilities
Equity:
Retained earnings:
Unreserved
Total Liabilities and Equity.
$ 66,651
101,130
167,781
221,938
6,318.
102,197
6,452,719
6,561,234
1,531,303
5,029,931.
$ 5,419,650
$ 5,249
339,152
344,401
29,376
155,000
184,376
1,165,000
1,693,777
3,725,873
$ 66,011
95,107
161,118
219,215
6,318
95,389
6,172,487
6,274,194
1,316,885
4,957,309
$ 5,337,642
$ 20,086
366,654
386,740
32,267
145,000
177,267
1,320,000
1,884,007
3,453,635
$ 5,419,650 $ 5,337,642
CITY OF RICHFIELD, MINNESOTA FORM J-9
STORM SEWE R UTILITY FUND
COMPARATIVE STATEMENT OF REVENUES, EXPE NSES, AND
CHANGES IN RETAINED EARNINGS
For the Years Ended December 31, 2000 and 1999
2000 1999
Operating Revenues:
Charges for services $ 757,963 $ 743,007
Customer service charges 16,997 17,134
Special Assessments 9,149 7,208
Total Operating Revenues 784,109 767,349
Operating Expenses:
Personnel services 130,583 160,948
Other services and charges 191,720 181,569
Depreciation 214,418 162,879
Total Operating Expenses 536,721 505,396
Operating Income 247,388 261,953
•
Nono eratin Revenues Ex enses
p 9 ( p )
Intergovernmental. revenue 4,500 -
Other revenue 430 1,506
Interest and fiscal charges (71,347) (78,221)
Net Nonoperating Revenues (Expenses) (66,417) (76,715)
Income Before Operating Transfers 180,971 185,238
Operating Transfers In (Out) -
Special Revenue Funds 15,000 -
Capital Projects Funds 76,267 370,598
Net Operating Transfers In (Out) 91,267 370,598
Net Income 272,238 555,836
Retained Earnings -January 1 3,453,635. 2,897,799
Retained Earnings -December 31 $ 3,725,873 $ 3,453,635
r~
L~
CITY OF RICHFIELD, MINNESOTA
RECREATION FUND
• COMPARATIVE BALANCE SHEET
December 31, 1999 and 1998
2000 1999
A ET
Current Assets:
Cash and cash equivalents $ 1,478,932 $ 1,787,300
Accounts receivable 81,752 82,260
Prepaid items - 61
Total Current Assets 1,560,684 1,869,621
Restricted Assets:
Cash and cash equivalents for debt service 131,535 103,356
Property and Equipment:
Land 121,270 179,135
Buildings 5,436,222 5,881,429
Machinery and equipment 367,320 621,826
Other improvements 387,178 2,185,218:
6,311,990. .8,867, 608
Less accumulated depreciation .2,059,816 3,870,538
Net Properly and Equipment 4,252,174 4,997,070
Total Assets $ 5,944,393 $ 6,970,047
• LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable $ 11,981 $ 29,054
Loan payable 2,900 2,900
Accrued salaries and employee benefits payable 43,304 69,342
Due to other governments 744 2,125
Total Current Liabilities (Payable from current as 58,929 103,421
Current Liabilities (Payable from Restricted Assets)
Accrued Interest Payable 34,339 54,894
Total Current Liabilities- 34,339 54,894
(Payable from Restricted Assets)
Long-Term Liabilities
Due to other funds 400,000 897,355
Loan payable 6,283 9,184
Bond Payable 1,660,000 1,660,000
Total Long-Tenn Liabilities 2,066,283 2,566,539
.Equity:
Contributed capital -
City 2,046,875 2,626,564
Retained earnings -
Reserved for Debt Service 138,387 138,387
Unreserved 1,599,580 1,480,242
Total Equity 3,784,842 4,245,193
Total Liabilities and Equity $ 5,944,393 $ 6,970,047
FORM J-10
CITY OF RICHFIELD, MINNESOTA FORM J-11
RECREATION FUND
• COMPARATIVE STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN RETAINED EARNINGS
For the Years Ended December 31, 2000
and 1999
2000 1.999
Operating Revenues:
User fees $ 783,857
Sales of merchandise and concessions 39,154
Less cost of sales (21,474)
Net Operating Revenues 801,537
Operating Expenses:
Personnel services 605,960
Other services and charges 579,058
Depreciation 211,583
Total Operating Expenses 1,396,601
Operating Income (595,064)
• Nonoperating Revenues:
Intergovernmental revenue 125,000
Interest income 179,765
Gain (loss) on disposal of fixed assets (56,566)
Interest charges (82,802)
Other 182,884
Total Nonoperating .Revenues 348,281
Income Before Operating Transfers (246,783)
Operating Transfers In (Out):
Special Revenue 356,661
Capital Projects 93,009
Internal Service Funds -
Net Operating- Transfers In (Out) 449,670
Net Income 202,887
Retained Earnings -January 1 1,618,629
• Equity Transfers In(Out) (83,549)
Retained Earnings -December 31 $ 1,737,967
$ 2,057,813
192,980
(110,908)
2,139,885
1,000,898
740,029
161,258
1,902,185
237,700
102,578
(66,269)
67,954
104,263
341,963
100,000
(660,037)
138,388
(421,649)
(79,686)
1,698,315
$ 1,618,629
CITY OF RICHFIELD, MINNESOTA
RECREATION FUND
• COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN RETAINED EARNINGS
For the Year Ended December 31, 2000 and 1999
Municipal
Golf Course Ice Arena
Operating Revenues:
User fees $ - $ 561,451
Sales of merchandise and concession - 1,739
Less cost of sales - -
Net Operating Revenues - 563,190
Operating Expenses:
Personnel services 160,171 - 273,301
Other services and charges 179,366 306,006
Depreciation 20,668 148,549.
Total Operating Expenses 360,205 727,856
Operating Income (Loss) (360,205) (164,666)
. Nonoperating Revenues:
Intergovernmental revenue - 125,000
Investment income 173,938 5,827
Gain (loss) on disposal of fixed assets (56,566) -
Interest Charges - (82,802)
Other Revenues 56,600 109,082
Total Nonoperating Revenues 173,972. 1.57,107
Income (Loss) Before Operating Transfers (186,233) (7,559)
Operating Transfers In (Out):
Special Revenue Funds
Capital Project Fund
Enterprise Funds
Internal Service Funds
Net Operating Transfers In (Out)
Net Income (Loss)
90,000
(140,694)
(50,694)
(236,927)
100,000
93,009
193,009
.185,450
Retained Earnings (Deficit) -January 1
• Equity Transfers In(Out)
Retained Earnings (Deficit) -December 31
2,980,961 (556,124)
(83,549)
$ 2,744,034
(454,223)
FORM J-12
•
Swimming Special Total
Pool Facilities 2000 1999
$ 161,660 $ 60,746 $ 783,857 $ 2,057,813
24,942 12,473 39,154 192,980
(14,402) (7,072) (21,474) (110,908)
1.72,200 66,147 801,537 2,139,885
131,052 41,436 605,960 1,000,898
66,533 27,153 579,058 740,029
22,895 19,471 211,583 161,258
220,480 88,060 1,396,601 1,902,185
(48,280) (21,913) (595,064) 237,700
•
- - 125,000 -
- - 179,765 102,578
- - (56,566) -
- - (82,802) (66,269)
983 16,219. 182,884 67,954
983 16,219 348,281 104,263
(47,297) (5,694) (246,783) 341,963
- 166,661 356,661 100,000
- - 93,009 (660,037)
99,032 41,662 - -
- - 138,388
99,032 208,323 449,670 (421,649)
51,735 202,629 202,887 (79,686)
(459,359) (346,849) 1,618,629 1,698,315
• - - (83,549) -
$ (407,624) $ (144,220) $ 1,737,967 1.,618,629
AGENDA SECTION: Resolutions
AGENDA ITEM # 9
City staff is still working with all three property owners to acquire the necessary right
of way through voluntary acquisition.
In the event that the City Manager determines that properties can not be acquired
voluntarily, the City will have to acquire the properties by use of eminent domain.
The owners have already had reasonable time to consider the City's offer and
voluntary agreement was not obtained.
The City Manager is requesting Council authorization to acquire the properties by
use of eminent domain proceedings if necessary, negotiate early entry
authorizations, and the use of the quick take procedure as provided in Minn. Stat.
117.042, pursuant to the City's approved appraisal of value for said real estate
interests as determined in the City Council's resolutions establishing just
compensation for said properties.
The City sent by mail and met with the property owners to discuss the City's just
compensation offers since the March 14, 2001 Council meeting.
The condemnation process must begin soon in order to maintain the construction
schedule for the Project to Widen 76th Street from West of Penn Avenue to I-35W.
Easements were obtained from several owners through negotiation so that
condemnation can be avoided in those cases.
III. BASIS OF RECOMMENDATION
A. POLICY
• The City has the legal authority to acquire private property by eminent
domain for a public purpose.
• The subject properties have been identified for purchase for the
Widening of 76th Street from West of Penn Avenue to I-35W Project.
• Right of Way acquisition procedures set forth by the Minnesota
Department of Transportation (MNDOT) are being followed.
B. CRITICAL ISSUES
• Condemnation proceedings must begin soon to maintain the
construction schedule for the Widening of 76th Street from West of
Penn Avenue to I-35W.
C. FINANCIAL
• Funding for the purchase of the parcels needed for the Widening of
76th Street will be provided by the City of Richfield using its Municipal
State Aid (gas tax) funds.
D. LEGAL
• The City's legal counsel, Robert Lindall, has reviewed the attached
resolution to begin the condemnation process.
IV. ALTERNATIVE RECOMMENDATION(S~
Delay approval of the condemnation resolution. However, a delay in
condemning properties will delay most of construction on the Widening of
76th Street Project until next year.
• Do not approve condemnation resolution and property acquisition.
V. ATTACPIMENTS
• Resolution authorizing and directing the condemnation of certain properties
for street purposes, including legal descriptions and maps for 7544 Oliver
Avenue, 2006 West 76th Street and 1700 West 78th Street.
• Map identifying parcels of the Widening of 76th Street Project.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
•
•
RESOLUTION NO.
RESOLUTION AUTHORIZING AND DIRECTING THE CONDEMNATION
OF CERTAIN PROPERTY FOR STREET PURPOSES
WHEREAS, the City Council of the City of Richfield is the official governing body of the
City of Richfield; and
WHEREAS, the City of Richfield, Minnesota, a municipal corporation, acting by and
through its City Council, is authorized by law to acquire land needed for public use or purpose;
and
WHEREAS, the widening of 76th Street and Penn Avenue ("Project") require that the real
estate described- herein be acquired to implement the Project; and
WHEREAS, the City Council finds that it is reasonable, necessary, proper and convenient,
for a public purpose, and in the interest of the public health, safety, convenience, anal general
welfare of the citizens of the City that title to and possession of the real estate interests. described
in Exhibit A attached hereto be acquired in furtherance of the Project; and
WHEREAS, the City Council finds that the funding and construction schedule for the
Project make it necessary to acquire title and possession of said real estate prior to the filing of
the final report of the condemnation. commissioners to be appointed by the district court.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield,
Minnesota, that it is the considered judgment of the Council that the real estate interests
described in Exhibit A attached hereto and incorporated herein, be acquired for the stated public
purposes and that they be acquired, if necessary, through the exercise of the power of eminent
domain.
BE IT FURTHER RESOLVED, that. in the event the City Manager determines that
voluntary acquisition is not likely to be achieved upon terms substantially consistent with the
City's determination of just compensation after the owner has had reasonable opportunity to
consider the City's offer of just compensation, the City Manager is hereby authorized and directed
to take all steps necessary to acquire said real estate interests by use of eminent domain
proceedings, negotiation of early entry authorizations, and the use of the quick take procedure as
provided by Minn. Stat. § 117.042, pursuant to the City's approved appraisal of value for said real
estate interests as determined in the City Council's resolution establishing just compensation for
said property or pursuant to said resolution.
Adopted by the City Council of the City of Richfield, Minnesota this 9th day of April 2001.
Martin J. Kirsch, Mayor
ATTEST:
Nancy Gibbs, City Clerk
Exhibit A
C
PARCEL NO. 7
CITY OF RICHFIELD
SEH PROJECT NO. RICHF0007.00
FEBRUARY 9, 2001
OWNER: P. S. Meyer, Trustee
c/o Prudence S. Meyer
8532 Park Knoll Circle
Bloomington, MN 55438
P.I.N.: 3302824320036
PROPERTY ADDRESS: 7544 Oliver Avenue South
NOTE: Owner and Property Description According to Hennepin County Auditor
Records.
DESCRIPTION OF PROPERTY:
The South 13.3 feet of the East 149 feet of the West 331 feet of the South.One Quarter
of the Northwest Quarter of the Southwest Quarter of Section 33, Township 28, Range
24, Hennepin County, Minnesota. Except Roads
DESCRIPTION OF EASEMENT:
A perpetual easement for roadway and utility purposes over, under, and across that part
of the above described property which lies northerly of a permanent easement for
CSAH 32 over said property as described as Parcel 12 in Final Certificate filed as
Hennepin County Document No. 6829567 and lies southerly of Line A described as
commencing at southeast corner of said West 331 feet; thence North 00 degrees 13
minutes 20 seconds East, along the east line of said West 331 feet, a distance of 53.70
feet; thence North 87 degrees 30 minutes 04 seconds West 30.02 feet to a point in the
west right of way line of Oliver Avenue as described in Book 2783 of Deeds, page 107
and the point of beginning Line A to be described; thence North 87 degrees 30 minutes
04 seconds West 101.44 feet; thence North 77 degrees 49 minutes 32 seconds. West
18.03 feet to a point in the west line of said East 149 feet of the West 331 feet and said
Line A there terminating.
Together with a temporary easement for construction purposes over, under, and across
that part of the above described property which lies northerly of the herein described
perpetual easement and southerly of Line B described as commencing at the point of
termination of Line A; thence North 00 degrees 13 minutes 20 seconds West, along the
west line of said East 149 feet, a distance of 5.11 feet to the point of beginning of Line B
to be described; thence South 77 degrees 50 minutes 55 seconds East 16.46 feet;
thence South 89 degrees 39 minutes 27 seconds East 102.86 feet to the west line of
said Oliver Avenue and said Line B there terminating.
Exhibit A
For purpose of this description, bearings are oriented to the Hennepin County
Coordinate System in which the west line of the Southwest Quarter of Section 33,
Township 28, Range 24, bears North 00 degrees 13 minutes 20 seconds West.
Said perpetual easement contains 693 square feet more or less Said temporary
easement contains 835 square feet more or less.
Said temporary easement expires December 31, 2002.
•
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Exhibit A
.PARCEL NO. 10
CITY OF RICHFIELD
SEH PROJECT NO. RICHF0007.00
FEBRUARY 9, 2001
OWNER: Sandra A. Bernhardson
2006 76th Street West
Richfield, MN 55423
P.1. N.: 3302824320015
PROPERTY ADDRESS: 2006 76th Street West
NOTE: Owner and Property Description According to Hennepin County Auditor
Records.
DESCRIPTION OF PROPERTY:
The South 240 feet of the West 100.1 feet of the East 558.1 feet of the Northwest
Quarter of the Southwest Quarter of Section 33, Township 28, Range 24, Hennepin
County, Minnesota. Except Road over the South 33 feet thereof.
DESCRIPTION OF EASEMENT:
A temporary construction easement for roadway and utility purposes over, under, and
across the North 7 feet of the South 40 feet of the above described property.
Said temporary easement contains 701 square feet more or less.
Said temporary easement expires December 31, 2002.
•
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Exhibit A
•
OWNER: CP Gal Richfield LLC
C/O CB Ellis INV/DIR Ast Mng
865 Figueroa St S #3500
Los Angeles, CA 90017
P.I. N.: 3302824340012
PROPERTY ADDRESS: 1700 78th Street West
PARCEL NO. 16
CITY OF RICHFIELD
SEH PROJECT NO. RICHF0007.00
FEBRUARY 23, 2001
NOTE: Owner and Property Description According to Hennepin County Auditor
Records.
DESCRIPTION OF PROPERTY:
Tract A of Registered Land Survey No. 1037 in the Southeast Quarter of the Southwest
Quarter of Section 33, Township 28, Range 24, Hennepin County, Minnesota.
DESCRIPTION OF EASEMENT:
A temporary construction easement for roadway and. utility purposes over, under and
across the West 5.00 feet of the North 473.24 feet of Tract A of Registered Land Survey
No. 1037.
Said temporary easement contains 2366 square feet more or less.
Said temporary easement expires December 31, 2002.
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AGENDA SECTION: Resolutions
AGENDA ITEM # 8
REPORT # 9 4
STAFF REPORT
CITY COUNCIL MEETING
APRIL 9, 2001
REPORT PREPARED BY: PAM DMYTRENKO, ASSISTANT TO THE CITY
MANAGER
NAME, TITLE
REPORT PRESENTER: SAMANTHA ORDUNO, CITY MANAGER
NAME, TITLE
REVIEWED BY CITY MANAGER: ~ ,,,~ , ~~ _ _~ _ ~}
ITEM FOR COUNCIL CONSIDERATION:
Consideration of the attached resolution urging MAC to extend its. current Part 150 Sound
Insulation Program to the 60-64 DNL contour and to continue to work collaboratively with the
air ort-affected communities.
I. RECOMMENDED ACTION:
By Motion: Approve the attached resolution urging MAC to extend its
current Part 150 Sound Insulation Program to the 60-64 DNL contour
and to continue to work collaboratively with the airport-affected
communities.
•
II. BACKGROUND
The Metropolitan Airports Commission (MAC) is completing an update to the Part
150 Sound Insulation Program. Before its submission to the FAA, the commission
must select a sound insulation package strategy for homes in the 60-64 DNL
contour. The current program provides a sound insulation package consisting of
additional insulation, new window and door treatments and the installation of air
conditioning to homes in the 1996 65 DNL noise contour. The update, developed
by the Metropolitan Aircraft Sound Abatement Council (MASAC) with the support of
MAC staff, includes a recommendation to extend the current full sound insulation
.program to the 2005 60 DNL contour.
In 1996, the Legislature directed the MAC to extend the insulation program to the 60
DNL as part of the dual track decision to keep and expand the airport at its current
location. In response to the direction from the Legislature, the MAC assembled a
0409 Part 150 Update
sound abatement advisory committee to prepare a recommendation for noise
mitigation. The MSP Noise Mitigation Committee's report, which was approved by
• the MAC on October 28, 1996,- proposed expanding the program to the 60 DNL.
However, because of extreme pressure brought recently by the airline industry (led
principally by Northwest Airlines), the MAC is reconsidering whether to extend the
sound insulation program to the 60 DNL and, if extended,. to offer a modified
package. Jeff Hamiel, MAC's Executive Director, has recommended to the
commission a package that would only provide air conditioning to the homes in the
60 DNL. MAC's insulation strategy decision will impact approximately 1,500
Richfield homes located in the 2005 60 DNL contour.
With the status of MASAC in jeopardy because of the withdrawal of the airline
representatives in October 2000, the. airport-affected communities are presenting an
identical resolution to their City Councils for passage. The resolution is intended to
send a strong message to-the MAC of the cities' resolute support for expansion of
the current sound insulation package to the 60 DNL and of their encouragement for
continued cooperation and collaboration with the communities.
III. BASIS OF RECOMMENDATION
A. POLICY
• The City of Richfield has been a contributing participant in MASAC
r and the Part 150 Update process.
• The resolution supports a previous resolution passed by the City
Council on May 8, 2000 recommending Part 150 Update priorities,
including continuing the current insulation program out to the 60 DNL...
• Richfield is committed to assuring a high quality of life for its residents,
including protection from the impacts caused by airport operations.
B. CRITICAL ISSITES
• If a different strategy other than the current sound insulation package
is approved by the MAC, approximately 1,500 homes will be impacted
by the decision and will receive a lesser form of noise mitigation.
• With airport operations increasing dramatically, it is critical that the
needs of all impacted communities are recognized and addressed
through the Part 150 Program. It is also critical that the communities
continue to have a vehicle through which to voice their concerns and
opinions about noise issues and receive technical data.
• MASAC community members are seeking passage of .the resolution
prior to the public hearing that the MAC Planning and Environment
Committee is holding on this issue on April 11, 2001.
C. FINANCIAL
• N/A
D. LEGAL
• N/A
IV. ALTERNATIVE RECOMMENDATION(S~
Revise the resolution to forward to the MAC..
• Do not approve the resolution. However, the strength of the combined
message to the MAC from all airport-impacted communities will be lessened.
V. ATTACPIMENTS
• Part 150 Program Update Resolution
• Map of the Richfield Homes in the 2005 60 DNL
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
RESOLUTION NO.
. RESOLUTION REGARDING PART 150 PROGRAM.
WHEREAS, the Metropolitan Airports Commission (MAC) is developing a proposal
to the Federal Aviation Administration (FAA) requesting FAA's approval of an expansion of
the Part 150 Sound Insulation Program (Program) into the 60 to 64 DNL contour areas;
and
WHEREAS, the existing Program was developed using an open public process that
relied to a great degree on the input of the Metropolitan Airports Sound Abatement Council
(MASAC), which included representatives of airlines and other business interests as well
as citizens~representing each affected community; and
WHEREAS, MAC's Policy Advisory Committee (PAC) for the Program, which
included representatives of each affected community, was instrumental in resolving
controversies that arose during the early implementation phases of the Program; and
WHEREAS, the Part 150 Program .has now achieved public support and typically
receives a very high approval rating. (97% to 98%) among homeowners whose homes
have been treated under the Program; and
WHEREAS, MAC has discontinued the PAC for the Program and has not replaced
MASAC after its industry representatives decided to stop participating.
• NOW, THEREFORE, BE IT RESOLVED by the Richfield City Council that the City
reaffirms its support for expanding the current sound insulation programto the 60-64 DNL
contour areas, subject to its comments previously submitted to MAC.
BE IT FURTHER RESOLVED that the City of Richfield urges MAC to work with the
affected cities, not just the industry interests, in developing any changes to the. Part 150
Program:
Adopted by the City Council of the City of Richfield, Minnesota this 9th day of April,
2001.
Martin J. Kirsch, Mayor
ATTEST:
• Nancy Gibbs, City Clerk
Q~
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AGENDA SECTION:
AGENDA ITEM #
REPORT #
CITY COUNCIL MEETING
•
APRIL 9, 2001
PUBLIC HEARING
7
93
REPORT PREPARED BY: GEORGE L. ATKINSON,
ENGINEERING SUPERVISOR
NAME, TITLE
REPORT PRESENTER: MIKE EASTLING, PUBLIC WORKS DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY CITY MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Conduct public hearing for consideration of the. source of funding for burying the overhead
utility lines along Portland Avenue from the Water Treatment Plant to the American Legion
Club and alon 66th. Street from 11th Avenue to the Munici al Swimmin Pool.
I. RECOMMENDED ACTION:
Close the public hearing and by Motion: table action regarding
burying of overhead utility lines and moving sidewalks away from
County roads of 66th Street and Portland Avenue adjacent to
Veterans Memorial Park of Richfield.
II. BACKGROUND
At the March 12, 2001 Council Special Study Session, the City Council discussed the
placing of overhead utility lines underground around Veterans Memorial Park along
Portland Avenue and related funding issues. Council supported a public hearing to gather
more public input. Notice of an April 9 public hearing was published in the Richfield Sun-
Currentnewspaper.
Following the public hearing but before the project may proceed, an agreement between the
City of Richfield and Xcel Energy/Northern States Power (Xcel) will be brought to Council
• for consideration. That proposed agreement is not yet available. Therefore, staff is
requesting that the Council conduct the public hearing but table action..
0409PHbury
The Hennepin County Department of Public Works has created a program that financially
assists inner ring suburbs with projects to enhance the beauty and/or safety of County
roads. The City of Richfield has proposed using this program to remove the power poles
along 66th Street from 11th Avenue to the Municipal Swimming Pool, and along Portland
• Avenue from the Water Treatment Plant to the American Legion Club. The existing
overhead utilities would be buried. The City further proposes using the Hennepin County
program to remove the existing sidewalks from the back of curb and replace them with
wider, path like sidewalks nine and ten feet back of the curbs.
The cost of removing and replacing sidewalks will be funded using a combination of County
(20%) and. Municipal State Aid (80%) funds. However Hennepin County has stipulated that
its portion of the sidewalk costs, estimated at $28,500, will only be paid if the power poles
are removed and the utilities are buried.
The City. may direct Xcel Energy/Northern States Power Company (Xcel) to bury its
overhead lines but Xcel has the right to be reimbursed for its costs according to law.
Although Hennepin County will pay $69,.100 of the estimated $171,300 cost, the remainder
in the amount of $102,200 remains unfunded. Xcel would be responsible for the cost, but it
might seek to recover the cost from city ratepayers.
The Minnesota Public Utilities Commission, not the City, will decide whether to allow a
surcharge againsf ratepayers. However; when other cities have requested utilities to be
undergrounded along county roads, Xcel has requested that the cities agree not to object to
a surcharge against city ratepayers. It is estimated that an additional $1 per month for
homes, $3 per month for small commercial users and $4 per month for large commercial
users would retire this debt in about seven months.
• This method is legal and is being used, or under consideration to be used, by other cities in
the Xcel service area such as Roseville; New Brighton, Maple Grove, Brooklyn Center,
Brooklyn Park, and Mound. Brooklyn Park, for example, has completed a project to bury
about a mile of utility lines for about $300,000 that Xcel is now collecting from Brooklyn
Park ratepayers. The Brooklyn Center City Council, for example, approved City-wide
undergrounding in 1990 and recently approved an agreement with Xcel under which the
work to underground utilities will start soon and Xcel will collect the reimbursement from
Brooklyn Center ratepayers. In New Brighton, the City has. ordered undergrounding along a
County road but has reserved its right to object to a surcharge against ratepayers, and the
New Brighton City Attorney expects Xcel to challenge the City's right to require
undergrounding. The projects in Brooklyn Center and New Brighton are significantly more
expensive than the proposed project in Richfield.
III. BASIS OF RECOMIVIENDATION
A. POLICY
• The Community Services Commission took action on April 11, 2000 recommending
the proposed sidewalk improvements and undergrounding of utilities including using
Xcel to collect the unfunded portion of the cost.
• Staff went to the Planning Commission with this proposal on June 27, 2000. The
Commission held a public hearing and then voted unanimously to support the
project. However, the Commission unanimously withheld comment on the method
• of funding the unpaid portion of the cost. One resident and two commissioners
voiced concerns that using Xcel bills to assist in funding the burying of utilities could
appear to be an additional and hidden City tax.
• Staff also asked all adult Richfield residents at the Public Works Open House on
May 6, 2000 if they would be willing to add $1 per month to their electric bill for up to
nine months for burying overhead utilities near Veterans Memorial Park of Richfield.
Residents voted 76 to 6 in favor of the project and Xcel funding.
• • An agreement with Hennepin County is in place so the project can proceed.
• The City's agreement not to object to a surcharge does not prevent individual
ratepayers from presenting objections to the Public Utilities Commission (PUC).
• Staff views this decision as an important policy issue. If it approves using Xcel as a
funding mechanism for this project, Council will be asked to approve placing
overhead utilities underground on other arterial streets in the future.
B. CRITICAL ISSUES
• Although legal and in use elsewhere, allowing Xcel to collect the unfunded portion of
undergrounding costs by assessing rate payers could be criticized as being a
"hidden" tax on the residents of Richfield.
C. FINANCIAL
• The Hennepin County program was announced in February of 2000.. The 2001
adopted Capital Budget includes $300,000 for the project. The revised 2001
Capital Budget wilF be adjusted to be inclusive for the following cost estimates:
Sidewalk cost:
Hennepin County $ 28,500
State Aid $114,000
Utility cost:.
Hennepin County $ 69,100
City of Richfield (possibly Xcel) $102,200
•
D. LEGAL
• Xcel Energy/Northern States Power Company (Excel) has the right according to law
to be reimbursed for its costs to bury its overhead lines. To date local community
ratepayers have funded the reimbursement to Xcel in communities where the work
has been done. However, there is a possibility the Public Utilities Commission
(PUC) may decide the ratepayers of a county rather than an individual community
will be responsible. for the reimbursement. Should the PUC make such a decision
prior to agreements for the work being finalized, the cost to Richfield ratepayers
would be reduced.
The City Attorney will be available for discussion at the meeting.
IV. ALTERNATIVE RECOMMENDATION~S~
• None.
V. ATTACHMENTS
• June 2000 Your City article regarding placement of utilities underground adjacent to
Veterans Memorial Park of Richfield.
• Photograph illustrating what the Portland Avenue side of Veterans Memorial Park of
Richfield will look like with sidewalks moved and power poles removed.
• A photograph of aboard that shows the public vote on the question of increasing Xcel
• ratepayer fees contribute toward funding the placement of utilities underground adjacent to
Veterans Memorial Park of Richfield.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
progress for construction of I-35W
orth of 76th Street. The ramp from
~'ith Street to northbound I-35W was
closed in late March but is expected
to be reopened in mid-June. If you
have any questions, call George
Atkinson at 612-861-9191. ^
City staff has been pursuing new state
and federal funding to finance the
reconstruction of the I-494/I-35W
interchange. New funds are needed to
accelerate construction of the inter-
change using a new design proposed
by Richfield officials. After MnDOT
approves the design, Richfield will
proceed to prepare the detailed design
of the proposed replacement of the
Lyndale Avenue bridge over I-494.
Bloomington will also be able to
perform the detailed design of the new
bridge crossing over I-35W at 79th
Street and 80th Street in Bloomington.
Construction of the Lyndale Avenue
bridge over I-494 is expected to begin
in 2001 or 2002. ^
e City has awarded a construction
ntract to install a traffic signal at
67th Street and Nicollet Avenue.
Work is scheduled to begin in June. ^
Storm sewer improvements are
being made in the area of 70th Street
and Russell Avenue. During the
construction, which began in May,
70th Street, from Russell Avenue to
Penn Avenue, and the south end of
Queen Avenue at 70th Street, will be
kept open for local traffic only.
Through traffic will be detoured.
Watch for signs. ^
Right-of-way acquisition for the 77th
Street underpass of Trunk Highway
77 (TH 77) has begun. Construction
of the project should begin in 2001
and last two or three years. This work
will be coordinated with construction
this summer by the Metropolitan
Airports Commission (MAC) of a
new frontage road, Longfellow
venue, on the east side of TH 77.
ngfellow Avenue (the east side
rontage road) was closed in April
and will remain closed until 2002.
The reconstruction of Longfellow
Avenue began in May 2000. Work
Would you support a Veterans Memorial Park free of overhead utility wires if it cost you
$9 in one year? The Planning Commission will hold a public hearing at 7 p.m., June 27,
in the City Council Chambers in City Hall, to consider a plan to bury overhead utility
wires in two locations around the park. Utilities would be buried along Portland Avenue
between the Crosstown to near 65th Street, and on 66th Street between Oakland and
11th Avenues. Because of available funding sources, the only additional costs to NSP
residential customers in Richfield would be $1 per month for nine months. That extra
charge on monthly electric bills would help reimburse NSP for relocation costs: Richfield's
NSP commercial customers would pay an extra $3 to $4 per month for nine months.
Anyone. with comments is encouraged to attend the public hearing, or if you have
questions, contact George Atkinson at 612-861-9191.
will include temporary improvements
to the 66th Street/TH 77 interchange.
ramps to accommodate airport
construction vehicles. The temporary
work has been occurring in May and
will continue into June. ^
The MAC is proposing to widen the
existing bridge and to build new
entrance and exit ramps at the 66th
Street and TH 77 interchange.
Construction of the interchange's east
ramps will begin in August 2000 and
take two or three years to complete.
Cedar Avenue (west frontage road)
will be kept open at 66th Street until
redevelopment occurs. This measure
will eliminate Cedar Avenue traffic
from diverting onto residential
streets.
For additional information on traffic
issues, call Tom Foley at 612-861-
9791. ^
!~' ~~
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PUBLIC SAFETY
he Richfield Police Crime Preven-
tion Unit is again hosting a video
night on June 22. "Scenarios in Self-
Defense" features Mary Brandl and
Anita Bendickson, experts in the areas
of "personal safety" and "managing
confrontation". Both hold fourth
degree black belts in Japanese
Shotokak Karate. These videos are for
everyone, but are particularly excel-
lent for young adults going off to
•3•
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,7
AGENDA SECTION:
AGENDA ITEM #
REPORT #
J STAFF REPORT
PUBLIC HEARING
6
92
CITY COUNCIL MEETING
APRIL 9, 2001.
REPORT PREPARED BY:
STEVEN L. DEVICH, ADMINISTRATIVE
SERVICES DIRECTOR
NAME, TITLE
REPORT PRESENTER:
STEVEN L. DEVICH, ADMINISTRATIVE
NAME,
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY CITY MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Continuation of the public hearing and second reading of a cable television ordinance for
Everest Connections Cor oration.
L RECOMMENDED ACTION:
By Motion: Continue the public hearing and second reading of the
cable television ordinance for Everest Connections Corporation to
Mav 14, 2001.
II. BACKGROUND
In April 2000, Everest Connections Corporation (Everest) and WideOpenWest, LLC
(WOW) approached the Southwest Suburban Cable Commission (SWSC)
regarding the process to be undertaken to obtain a cable television franchise in the
five-city SWSCC franchise area. In compliance with Minnesota Statutes Chapter
238, the SWSCC assisted its member municipalities in conducting the process for
the granting of a cable television franchise in each respective member city.
The process consisted of the preparation of a Notice of Intent to Franchise and
Official Application Form. These documents were published by the City and two
proposals were received; one form Everest and one from WOW.. The SWSCC,
through its legal counsel Moss & Barnett, conducted a review of the legal, technical
0312SWSCC
and financial qualifications of both applicants and submitted a report to the City
Council regarding these matters.
.The City then conducted a public hearing in compliance with Minnesota statutes to
receive input from all interested parties. Following completion of the public hearing,
the City adopted resolutions finding both Everest and WOW possessed the
requisite qualifications to own and operate a cable television system within the City.
The SWSCC was then instructed by the member cities to negotiate with Everest
and WOW to prepare a Cable Television Franchise Ordinance that would be
consistent with all applicable local, state and federal laws. In particular, the
SWSCC was guided by the level playing field language contained within Time
Warner's existing franchise and state law. That language requires that. any
franchise granted to a competitor of Time Warner must not be any less burdensome
or more favorable than-the terms and conditions applied to Time Warner. With
those issues in mind, the SWSCC negotiated the attached ordinance with Everest
Connections Corporation.
Since the first reading of this franchise ordinance with Everest, the company has
indicated that it is not in a position to proceed with the acceptance of the ordinance
at this time. Staff has received a letter from the company indicating- that. it is not
going to pursue the cable franchise in the SWSCC at this time, but that. it still finds
this to be an attractive market and my pursue a franchise again in the future.
However, the letter does not indicate any certain timeframe for a future franchise.
This letter is being referred to and will be considered by the full SWSCC on April 25,
2001. The SWSCC will likely recommend an action for each of the member cities
at that time.
It is very likely that the SWSCC will recommend that the cities consider
discontinuing the Everest franchise ordinance process at this time and rescind the
ordinance.
The ordinance. is not attached to this Staff Report. It will be attached if, and when,
the second reading is conducted.
III. BASIS OF RECOMMENDATION
A. POLICY
• The City of Richfield has followed the legal and procedural.
recommendations of the SWSCC legal counsel in completing the
franchising process.
• The SWSCC has considered the terms of the franchise agreement,
feels they are in the best interests of the member communities and
has approved them.
• • The proposed franchise agreements comply with the "level playing
field" language contained within the Time Warner agreement. Further,
Time Warner does not have a dispute with the SWSCC regarding the
terms of the proposed new franchise language.
0409everest
• It is not prudent to conclude this ordinance until the franchisee is in the
position to accept the franchise.
B. CRITICAL ISSUES
• The required legal notice for the public hearing and second reading
was published in the Richfield Sun Current on January 31, 2001.
• Everest has informed the City that it is not in a position to accept a
franchise at this time.
The SWSCC will act on the. Everest Franchise matter at its meeting of
April 25, 2001...
C. FINANCIAL
• The City of Richfield will receive franchise fees identical to those paid
by Time Warner.
• The City will receive benefits of .public and government access equal
to those provided by Time Warner.
D. LEGAL
• Mr. Grogan is recommending that the City postpone consideration of
this franchise until. action is-taken by the SWSCC.
IV. ALTERNATIVE RECOMMENDATION(S~
• Cancel the public hearing. and second reading and start the ordinance
adoption process again.
V. ATTACPIMENTS
• Letter from UtiliCorp Communication Services.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
•
0409everest
•
March 9, 2001
Mr. Steve Devich
Assistant City Manager
City of Richfield
6700 Portland Avenue
Richfield, MN 55423-2560
Dear Mr. Devich:
~~
~~ ~ ~~~
~ ,Pzr,
1111 Main Street, Suite 200
Kansas City, Missouri 64105
816-701-2616
Fax: 816-701-2816
E-mail: mdeggend@utilicorp.com
UTILICORP
COMMUNICATIONS SERVICES
Michael L. Deggendorf
Vice President
Market Development
On behalf of UtiliCorp Communications Services, Inc., the majority investor in Everest
Connections Corporation, we would like to extend our sincere appreciation for the opportunity to
meet with you to review our current situation.
As we discussed, the unexpected tightening in capital markets for both debt and equity has forced
us to move forward at a more measured pace. This pace allows us to meet the financial market's
new requirement that we prove the viability of our business model in the marketplace rather than
merely on paper. The test for our business model is taking place in the Kansas City Metropolitan
Area where we have made significant progress in the construction of the system and have begun
activating customers. Our initial numbers reflect positive results and we fully believe that we will
exceed the projections of our business plan.
While we regret the delay in the Minneapolis/St. Paul Metropolitan Area, we believe that this is a
prudent and conservative decision, which will ultimately benefit your communities and our
customers. Once we are ready to move forward in this market, the Cities and Commissions will
have concrete evidence that our business model is viable and that we are able to fulfill our
contractual obligations.
We want to stress that we view the Minneapolis/St. Paul Metropolitan Area as an extremely
attractive market and that we have every intention of providing a state-o~the-art service offering
that will bring your citizens choice for their current cable, telephone and high speed Internet
offerings. We believe that Cities and Commissions have been both thorough and fair during the
franchising process, demonstrating the ability to conduct this process with due diligence while
maintaining the expediency necessary in a competitive market.
Thank you for your time and consideration. If you have any questions, please do not hesitate to
contact us.
Sincerely,
Michael L. Deggendorf
Vice President
Market Development
•
•
AGENDA SECTION: CONSENT CALENDAR
AGENDA ITEM # 5F
REPORT # 91
J STAFF REPORT
CITY COUNCIL MEETING
•
APRIL 9, 2001
REPORT PREPARED BY: ALAN PAYNE, FACILITIES MANAGER
NAME, TITLE
REPORT PRESENTER: JIM TOPITZHOFER, RECREATION SERVICES
DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW: ~ r ~'/~
IGNATURE
REVIEWED BY CITY MANAGER: ~ _ ~~, ~ ~ ~
ITEM FOR COUNCIL CONSIDERATION:
Consideration of award. of contract to Sandman Enterprises for sandblasting and painting the
waterslide at the Richfield Pool in amount of $18,648.
I. RECOMMENDED ACTION:
By Motion: Award the contract for sandblasting and painting the
waterslide at the Richfield Pool to Sandman Enterprises in amount of
$18,648.
U
II. BACKGROUND
The Richfield Pool waterslide is ten years old and the steel framing, supports and
stairways are rusted. Staff has used rust inhibitors and performed touch-up
painting, but the rust has become too extensive for these short-term remedies. To
properly paint the waterslide requires extensive equipment and time.
Staff solicited bids to sandblast .and clean all of the metal, prime it with an epoxy
primer and apply a finish coat. The winning proposal was submitted by Sandman
Enterprises of Elko.
0409 waterslide
Sandman Enterprises submitted the lowest bid. Bid results were as follows:
•
Sandman Enterprises
Elko, MN
Paint with Prep
Cannon Falls, MN
ProTouch Painting
South St. Paul, MN
III. BASIS OF RECOMMENDATION
$18,648.00
$25,586.00
$36,300.00
A. POLICY
• Because the total project cost is under $50,000, the sealed
competitive bid requirements did not apply. Staff solicited three
quotes and chose the lowest responsible bid.
B. CRITICAL ISSUES
• It is anticipated that if the pool is renovated, the waterslide would
remain.
-"~1
LJ
With proper refinishing, the waterslide will only require periodic
painting to maintain the finish coat and extend the life of the slide.
Staff is requesting action at the April 9, 2001 meeting to allow for
completion of the project prior to the Richfield Pool opening on June 8,
2001.
C. FINANCIAL
• The funding for this project was approved as part of the transitory
ordinance process approved on March 12, 2001. The budgeted
amount is $25,000.
D. LEGAL
• All required bonding and insurance materials accompanied the
Sandman Enterprises bid.
IV. ALTERNATIVE RECOMMENDATION(S~
• Do not award the contract to Sandman Enterprises.
• Award the contract to a different company.
• Accept none of the bids and direct staff to readvertise at a later date.
However, the painting of the waterslide will greatly approve the appearance
of the slide for this upcoming season.
LJ
V. ATTACFIMENTS
• Quotes from three contractors.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
LJ
$,~AIQ/II~N~IYTEI~PA/S,f INVOICE NO. ESTIMATE
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--- -------- ~ INVOICE -
Customer
Name CITY OF RICHFIELD __ Date 3!23/01
Address __ _ _ _ _ _ Order No.
City ~~~ ~^ ~ ~ ~ &tate MN Z!P Rep AL PAYNE
Phone FOB
aty ~ ~~ Unit Price TOTAL i
1 SANDBLAST AND EPOXY PRIME STRUCTURAL
STEEL, POWER WASH FIBERGLASS FLUMES
APPLY ONE COAT OF URETHANE TO FLUMES AND
TWO COATS TO STRUCTURAL STEEL.
WE WILL REQUIRE FENCE REMOVAL AND A SMALL
DUMPSTER(2.5YD). WORK AREA TO BE SWEPT
CLEAN BY CONTRACTOR. WE ARE NOT
RESPONSIBLE FOR SAND/PAINT IN: POOL OR
SURROUNDING AREA.
•
TERMS ON ACCEPTANCE
$t8,848.00 ~ $'!8,648.00
- rayme~~a vewna
Q Cash
Q Check
Q Credit Card
Name
CC #
Expires
-~~-~ ~~~TOTAL $18
Office Use Only ~~
.r_.._~
NET 10 DAYS OR 1.59K PER MONTH
MAKIN' DUST
SubTotal $18,648.00
Shipping & Handling. --~ ~~_~----$0.00
Taxes MINNESOTA
•
_ . _,,,~
PAINT WITH PREP ~ PROPOS~~. ~4~.
CANNONOFALLS, MN 55009 A C C E P T g ~.
Home & Office: 507-263-5132
Fax: 507-263-2167
PR SU MI EDT ~,
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ST ET/~ /~ // // JOB NAME
CITY, TE AND Z CODE JOB CATION
ARCHITECT DATE OF PLANS JOB PHONE
We hereby submit specifications and estimates for ,~
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All material is guaranteed to be as specified. All work to be completed in a workman- h \~
like manner according to standard practices. Any alteration or deviation from above Authorized
specifications involving extra costs will be executed only upon written orders, and Signature
will become do extra charge over and above the estimate. All agreements contingent
upon strikes, accidents or delays beyond our control. Owner to carry fire, tornado. Note: This proposal may be
and other necessary insurance. Our workers are fully covered by Workmen's Com- withdrawn by uc if n„t .. e...ea ..,;.ti:.. - ~~~ ~_.._
oensation Insurnnra
... -The above prices, specifications
and conditions are satisfactory and are hereby accepted. You are authorized
to do the work as specified. Payment will be made as outlined above. Signature
Date of Acceptance Signature
PACC-693-3
PRINTED IN U.S.A
February 28, 2001
R
~.
Richfield Ice Arena
636 East 66"' Street
Richfield MN 55423
139 S. Concord Exchange St.
South St. Paul, MN 55075
.~
651.457.5628 phone
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651.457-5991 fax
,.
website:
www.protouchpainting.com .
~_ E;
•
RE: Richfield Waterslide Project
Provide all labor, material and equipment for the sandblasting and painting of the waterslide and bridge,
which cross over the 'flumes.
All work is to be performed per specifications supplied with bid package.
Labor & Material: ~ $33,100.00
Power wash exterior sides of fiberglass flumes.
Apply one coat 330HS, per specifications. Add: $ 3,200.00
p T i~ 11(ruu ~~--~ ~',"~, Jim Hoffman
- PR~T~UC,II President
Jim Hoffinan
President
JH/gh _
TERMS: Monthly payouts to be submitted by the 25`h of each month for payment to Protouch by
the 25`x' of the following month.. Please sign and return one copy upon acceptance.
NOTE: This bid may be withdrawn by us' if not accepted within 60 days. All work to be
.performed during normal business hours, Monday-Friday, or upcharge will be added: Protouch assumes no
responsibility for damages to completed work by others.. If Protouch incurs expenses due to repair of
completed work, that expense will be additional and added to the invoice.
Accepted by: _ Date: - ~ Contract #:
ri ~
139 S. Concord Exchange St.
`~ PAINTING South St. Paul, MN 55075
~NCORPOR..TEO 651.457-5628 phone r~.651.457-5991 fax
e-mail: jim@protouchpainting.com
website: www.protouchpainting.com
AGENDA SECTION: CONSENT CALENDAR
AGENDA ITEM # S E
REPORT # 9 0
J STAFF REPORT
CITY COUNCIL MEETING
APRIL 9, 2001
REPORT PREPARED BY:
PATRICK DOLAN, ENGINEERING
TECHNICIAN
NAME, TITLE
REPORT PRESENTER:
MIKE EASTLING, PUBLIC WORKS DIRECTOR
NAME, TITLE
•
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY CITY MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of award of contract for the 2001 sealcoating project.
I. RECONIlVIENDED ACTION:
By Motion: Accept the attached bid minutes/tabulation and award a
contract to Allied Blacktop, Inc. in the sum of $158,873.44 for
sealcoating work to be done in 2001.
u
II. BACKGROUND
sealcoating has have been an effective technique for slowing the deterioration of
the City's residential streets. The sealcoating process involves applying a thin coat
of emulsified oil, then covering it with buckshot sized rock. A map of the proposed
2001 sealcoat area is attached.
A bid opening was held March 21, 2001 for the 2001 sealcoating project. A copy of
the bid minutes is attached. The 2001 adopted Street Maintenance budget
contains $175,100 for the contracted sealcoating. The contract is based upon
estimated quantities. Payments will be made on actual work performed. Council
would be authorizing a contract at the stated amount with the stipulation that the
contract documents allow variations.
0409Sealcoat
. III. BASIS OF RECOMMENDATION
A. POLICY
• In 1995, Council initiated an accelerated street maintenance program.
The program includes asphalt crack repair, asphalt milling and
patching and sealcoating of all City streets in five-year cycles.
B. CRITICAL ISSUES
• N/A
C. FINANCIAL
• Allied Blacktop, Inc. submitted the lowest responsible bid.
• The 2001 Street Maintenance budget contains adequate funds for the
contractor services on this project. The contractor's bid on estimated
quantities and amounts will be monitored.
D. LEGAL
• N/A
IV. ALTERNATIVE RECOMMENDATION(S~
• Council may choose to reject all bids and direct staff to obtain new bids;
however, the prices received for this work are extremely good, and staff does
not believe lower prices can be obtained from a reputable contractor.
• Council may choose to award a contract to another bidder. However, the bid
submitted by Allied Blacktop, Inc. is a reasonable bid, within budget amounts,
submitted by a responsible bidder.
• Council may choose to discontinue the sealcoating program. However, the
program appears to be maintaining and extending the usable life of the City's
residential streets.
V. ATTACHMENTS
• A map of the proposed 2001 sealcoat area.
• A copy of the March 21, 2001. bid minutes/tabulation.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
C7
•
•
0
U
f6
N
CITY OF RICHFIELD, MINNESOTA
•
Bid Opening
March 21, 2001
11:00 a.m.
2001 Bituminous Sealcoating Construction
Bid No. 01-03
City Project No. 101-35-601
Pursuant to requirements of Resolution No. 1015, a meeting of the Administrative Staff
was called by Deborah J. Guiher, Deputy City Clerk, who announced that the purpose
of the meeting was to receive, open and read aloud, bids for 2001. bituminous sealcoat
construction, bid no. 01-03, as advertised in the official newspaper on February 21,
2001.
Present: Deborah J. Guiher. Deputy City Clerk
George Atkinson, Public Works Representative
Cheryl Krumholz, City Manager Representative
C
The following bids were submitted and read aloud:
Vendor Bid Security Total- Bid Amount
Pearson Bros., Inc. 5% Bid Bond $ 164,926.22
Loretto, MN
Astech 5% Bid Bond $ 191,932.09
Asphalt Surface Technologies Corp.
St. Joseph, MN
Allied Blacktop Co. 5% Bid Bond $ 158,873.44
Maple Grove, MN
Biruminous Roadways, Inc. 5% Bid Bond $ 169,886.38
Minneapolis, MN
The Deputy City Clerk announced that the bids would be tabulated and considered at
the April 9, 2001 City Council Meeting.
Deborah J. Guiher .Deputy City Clerk
•
AGENDA SECTION:
AGENDA ITEM #
REPORT #
STAFF REPORT
CITY COUNCIL MEETING
APRIL 9, 2001
Consent
5D
89
REPORT PREPARED BY: BARRY FRITZ, POLICE CAPTAIN
NAME, TITLE
•
r~
L
REPORT PRESENTER: DAN SCOTT, DIRECTOR OF PUBLIC SAFETY
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
~ib
SIGNATURE
REVIEWED BY CITY MANAGER: ~ u / . n
ITEM FOR COUNCIL CONSIDERATION:
Approval of attached contract between the City and Auction Broadcasting Company
Minnea olis settin forth terms and conditions for the sale of forfeited vehicles.
I. RECOMMENDED ACTION:
By Motion: Approve the attached contract between the City and
Auction Broadcastin Com an for the sale of forfeited vehicles.
II. BACKGROUND
..Recent changes in state statutes allow for administrative forfeitures of vehicles
driven by persons charged with certain D.U.I. offenses. These changes have led to
the City acquiring significant numbers of vehicles that eventually need to be
disposed of through sales. Having an auction service handle the sale of the
vehicles is the most efficient, cost-effective way of selling the vehicles.
0409Veh icleSalesContract
III. BASIS OF RECOMMENDATION
A. POLICY
Council approved an ordinance amendment to Subsection 315.01,
Subdivision 4, on March 12, 2001. The amendment relates to the
disposition of forfeited, abandoned,. junk and impounded motor
vehicles, and expands the limitation on application to include motor
vehicles and personal property acquired by the City through civil or
criminal forfeiture proceedings.
Council further approved the addition of Subsection 315.02 that gives
disposition authority to the City Manager to determine what forfeited
property is to be sold and the method of sale of lawfully forfeited
property to facilitate disposal in a timely manner.
B. CRITICAL ISSUES
There are currently numerous vehicles that need to be disposed of by
sale or salvage.
• There is a limited amount of space for the storage of these vehicles.
Large numbers of vehicles stored for long periods of time become
eyesores;
C. FINANCIAL
The City will receive the proceeds from-the sale of vehicles, minus a
flat fee paid to the auction company for selling the vehicle.
• Vehicles sold in a timely manner bring better prices because those
impounded for lengthy periods of time are subject to mechanical
problems and appearance problems due to vandalism, the elements,
and rodents.
Assigning a Public Safety employee to sell the vehicles would not be
cost-effective.
D. LEGAL
The contract sets forth terms and conditions ofyehicle sales when
handled by Auction Broadcasting Company Minneapolis, but does not
give them exclusive rights to the sale of City vehicles.
IV. ALTERNATIVE RECOMMENDATION(S~
The Council could do nothing at this time, which would mean vehicles
acquired through forfeiture would. have to be sold through some other means.
This would likely lead to additional accumulation of vehicles.
•
• V. ATTACHMENTS
• The agreement between the City and Auction. Broadcasting Company
Minneapolis.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None expected.
•
•
AGREEMENT BETWEEN THE CITY OF RICHFIELD
AND AUCTION BROADCASTING COMPANY MINNEAPOLIS
THIS AGREEMENT is made and entered into this 9th day of March, 2001, by and
between the City of Richfield, a Minnesota municipal corporation located at 6700 Portland
Ave. S., Richfield, Minnesota 55423 (hereinafter referred to as the "City"), and Auction
Broadcasting Company Minneapolis, a limited, liability corporation with its principle
business offices located at 18270 Territorial Road, Dayton, Minnesota 55369 (hereinafter
referred to as "ABC").
WITNESSETH
WHEREAS, the City comes into possession of and is authorized to retain various
motor vehicles which are identified as potentially being subject to forfeiture or other civil.
processes under the laws of the State of Minnesota as a result of their having been used in
the connection with a criminal act (hereinafter referred to as "Forfeiture Vehicles") and
upon successful completion of the forfeiture or civil process the City is authorized to
dispose of said vehicles in accordance with Section 315 of the Richfield City Code; and
WHEREAS, ABC represents that it has the professional expertise and knowledge to
perform its duties as an automobile dealer, and is licensed by the State of Minnesota in
that capacity; and
WHEREAS, the City desires to hire ABC to transport, store, repair, maintain and
sell its Forfeiture Vehicles;
NOW, THEREFORE, in consideration of the terms and conditions expressed
herein, the parties agree as follows:
I. TERM OF AGREEMENT
The term of this Agreement shall begin April 9, 2001, and shall continue until April
9, 2002, subject to termination as provided in Article IV.
II. DUTIES OF ABC
A. Upon specific authorization from the City, ABC agrees to drive or transport
those vehicles identified by the City as one of its Forfeiture Vehicles to a secure location to
be determined and managed by ABC.
B. Upon receipt of a City Forfeiture Vehicle, ABC accepts full responsibility for it
and agrees to exercise due diligence in its care, maintenance and storage of said vehicle
until the time that it is sold or released; so as to avoid waste and obtain a reasonable sale
price at auction.
C. Upon specific authorization from the City, ABC agrees to perform such. minor
repair work on the City's Forfeiture Vehicles so as to prepare them for auction and
maximize the City's return at auction, but in no event shall such repair work exceed the
cost of TWO HUNDRED AND NO/100 DOLLARS ($200.00) without prior, written
authorization by the Richfield City Manager or his/her designee.
D. .Upon specific authorization from the City, ABC agrees to release the City's
Forfeiture Vehicles prior to auction on such terms and conditions as the City may direct.
E. ABC agrees to box and store personal property that is not affixed to, but
located within, the City's Forfeiture vehicles and upon specific authorization from the City
to release such. property on such terms and conditions as the City may direct.
F. Upon specific authorization from the City, ABC agrees to promptly sell the
City's Forfeiture Vehicles in a commercially reasonable manner by an open and
competitive automobile dealer or salvage auction.
G. ABC agrees to defend, indemnify and hold harmless the City, its officials,
employees and agents from any and all claims, causes of action, lawsuits, damages,
losses, or expenses, including attorney fees, arising out of or resulting from ABC's
(including its officials, agents or employees) performance of the duties required under this
Agreement, provided that any such claim, damage, loss or expense is attributable to bodily
injury, sickness, diseases or death or to injury to or destruction of property including the
loss of use resulting therefrom and is caused in whole or in part by any negligent act or
omission or willful misconduct of ABC.
H. During the term of this Agreement ABC agrees to maintain general
comprehensive liability insurance in the amount of $1,000,000 for any damage to property,.
theft, loss or other claims as a result of ABC's negligence or malfeasance in performing
this Agreement. In addition, ABC agrees to maintain such motor vehicle liability insurance
as required by state and federal laws.
I. ABC shall be licensed and bonded in the State of Minnesota to perform its
duties under this Agreement and shall provide a certificate of licensure, bonding and
insurance to the City.
J. ABC agrees to comply with all applicable local, state and federal laws, rules
and regulations in the performance of the duties of this Agreement.
K. It is agreed that nothing herein contained is intended or should be construed
in any manner as creating or establishing the relationship of copartners between the
parties hereto or as constituting ABC's staff as the agents, representatives or employees
of the City for any purpose in any manner whatsoever. .ABC and its staff are to be and
shall remain an independent contractor with respect to all services performed under this
Agreement. ABC represents that it has, or will secure at its own expense, all personnel
required in performing services under this Agreement.. Any and all personnel of ABC or
other persons, while engaged in the .performance of any work or services required by ABC
under this Agreement, shall have no contractual relationship with the City and shall not be
considered employees of the. City, and any and all claims that may or might arise under the
Workers' Compensation Act of the State of Minnesota on behalf of said personnel or other
persons while so engaged, and any and all claims whatsoever on behalf of any such
person or personnel arising out of employment or alleged employment including, without
limitation, claims of discrimination against ABC, its officers, agents, contractors or
employees shall in no way be the responsibility of the City; and ABC shall defend,
indemnify and hold the City, its officers, agents and employees harmless from any and all
such claims regardless of any determination of any pertinent tribunal, agency, board,
commission or court. Such personnel or other persons shall not require nor be entitled to
any compensation, rights or benefits of any kind whatsoever from the City, including,
without limitation, tenure rights, medical and hospital care, sick and vacation leave,
Workers' Compensation, Unemployment Compensation, disability, severance pay and
PERA.
L. The books, records, documents, and accounting procedures of the
Contractor, relevant to this Agreement, are subject to examination by the City, and either
the legislative or state auditor as appropriate, pursuant to Minnesota Statutes, Section
16C.05, Subdivision 5.
M. ABC agrees to comply with the Americans With Disabilities Act (ADA),
Section 504 of the Rehabilitation Act of 1973 and not discriminate on the basis of disability
in the admission or access to, or treatment of employment in its services, programs, or
activities. ABC agrees to hold harmless and indemnify the Gity from, costs, including but
not limited to damages, attorney's fees and staff time, in any action. or proceeding brought
alleging a violation of ADA and/or Section 504 caused by the ABC. Upon request,
accommodation will be provided to allow individuals with disabilities to participate in all
services, programs and activities. The City has designated coordinators to facilitate
compliance with the Americans With Disabilities Act of 1990, as required by Section
35.107 of the U.S. Department of Justice regulations, and to coordinate compliance with
Section 504 of the Rehabilitation Act of 1973, as mandated by Section 8.53 of the U.S.
Department of Housing and Urban Development regulations.
N. The Contractor will comply with all applicable provisions of the Minnesota
Government Data Practices Act, Chapter 13 of the Minnesota Statutes.
0. Any Forfeiture Vehicles which ABC has been authorized and directed to sell
but was unable to under the terms of this Agreement shall be returned to the City at a site
designated by it as soon as reasonably practicable but in no event more than sixty (60)
days from the occurrence of the event making sale under this Agreement impossible.
III. DUTIES OF THE CITY
A. The City shall consign specifically identified Forfeiture Vehicles to ABC to
sell to the highest bidder at public dealer or salvage auctions.
B. The City shall certify that it has good title and right to sell those of its
Forfeiture Vehicles which it directs and specifically authorizes ABC to sell at public dealer
or salvage auctions and shall provide and deliver merchantable title to the purchaser upon
notification from ABC.
C. The City shall defend, indemnify and hold harmless the ABC, its officials,
employees and agents, from any and all claims, causes of action, lawsuits, damages,
losses or expenses, including attorney fees, arising out of or resulting from the City's
performance of the duties required under this Agreement, provided that any such claim,
• damages, loss or expense is attributable to bodily injury, sickness, diseases or death or to
injury to or destruction of property including the loss of use resulting therefrom and is
caused in whole or in part by any negligent act or omission or willful misconduct of City.
D. The City shall pay to ABC the following amounts as and for its services
properly authorized and provided pursuant to this Agreement:
1. Transportation of an operable Forfeiture Vehicle to or from the City of
Richfield to ABC's designated storage site: $35.00.
2. Tow of an inoperable Forfeiture Vehicle (tow or trailer) to or from the
City of Richfield to ABC's designated storage site: $75.00.
3. Basic cleaning of a Forfeiture Vehicle: $25.00.
4. Repair of a Forfeiture Vehicle prior to auction: Shop Rates.
5. Sale by auction of a Forfeiture Vehicle: $110.00.
6. Release of a Forfeiture Vehicle prior to auction: $50.00 redemption fee
plus any charges (i.e., transportation).
7. Storage fee if car is not sold within 90 days: $3.00/day.
8. Inventory fee for release of personal property: $15.00.
IV. TERMINATION
Either party may terminate this Agreement for any reason upon thirty (30) days
advance written notice to the other party. The City reserves the right to cancel this
Agreement at any time in event 'of default or violation by ABC of any provision of this
Agreement. The City may take whatever action at law or in equity that may appear
necessary or desirable to collect damages arising from a default or violation or to enforce
performance of this Agreement.
V. MISCELLANEOUS
A. Any material alterations, variations, modifications or waivers of provisions of
this Agreement shall be valid only when they have been reduced to writing as an
amendment to this Agreement and signed by both parties.
B. This Agreement shall not. be assignable except at the written consent of the
City.
C. This Agreement represents the entire Agreement between ABC and the City
and supersedes and cancels any and all prior agreements or proposals, written or oral,
between the parties relating to the subject matter hereof; and amendments, addenda,
.alterations, or modifications to the terms and conditions of this Agreement shall be in
writing and signed by both parties.
D. The parties agree to comply with the Minnesota State Human Rights Act,
Minnesota Statutes, Section 363.
E. The parties hereto agree to comply with Section 504 of the Rehabilitation Act
of 1973/31 CFR Part 51. This Act states in part that, "...all recipients of federal funds,
whether in the form of a grant or a contract, review,. and if necessary modify, their
programs and activities so that discrimination based on handicap is eliminated."
F. The terms and conditions of this Agreement shall be binding on ABC's
successors and assigns and to the extent any assignee of ABC.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed the day and year first above written.
DATED:
DATED:
CITY OF RICHFIELD
BY:
Its Mayor
BY:
Its Manager
AUCTION BROADCASTING COMPANY
MINNEAPOLFS
DATED: BY:
Its
L~
•
AGENDA SECTION: CONSENT CALENDAR
AGENDA ITEM # S C
REPORT # 8 8
STAFF REPORT
CITY COUNCIL MEETING
I-'1
U
. APRIL 9, 2001
REPORT PREPARED BY: STEVEN L. DEVICH, ADMINISTRATIVE
SERVICES DIRECTOR
NAME, TITLE
REPORT PRESENTER: STEVEN L. DEVICH, ADMINISTRATIVE
SERVICES DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW: ~~
1
SIGNATURE
REVIEWED BY CITY MANAGER: /~ _ ~ ~~-~ _~,
ITEM FOR COUNCIL CONSIDERATION:
Consideration'of the renewal of the attached agreement for assessment services with
Henne in Count .
I. RECOMMENDED ACTION:
By Motion: Authorize the City Manager to execute the attached
renewal contract with Hennepin County for the purchase of
assessment services for the period commencing August 1, 2001 and
ending July 31, 2005.
IL BACKGROUND
In 1981, the City of Richfield entered into the first of a series of four-year contracts
with Hennepin County for assessment services. Prior to that time, assessment
services were performed by a City assessing staff consisting of a City Assessor and
three Property Appraisers. The current contract with Hennepin County will expire
on July 31, 2001. The City must take action to renew the contract with Hennepin
County or hire a City Assessor and property appraising staff.
III. BASIS OF RECOMMENDATION
0409HennCtyK
A. POLICY
• The assessment service provided by Hennepin County during the past
20 years has been extremely responsive and professional.
• Larry Miller, Hennepin County Principal Property Appraiser, has been
assigned to supervise the Richfield assessment for the past 18 years.
He is very responsive and courteous to residents and City staff..
• Hennepin County assigns well-trained and knowledgeable staff to
perform the Richfield assessment in addition to Mr. Miller.
• The City has no less local control of the assessment process under
contract with Hennepin County than it would. if the assessment was
performed by City staff.
B. CRITICAL ISSUES
• If the City was to consider terminating this contract, the City would
need to begin immediately to assemble a City property assessment
staff.
• The current contract expires at the end of July and Hennepin County
would .like advance notice of the City's intentions with respect to the
contract renewal.
C. FINANCIAL
• The cost of purchasing the base assessment service from Hennepin
County is $183,500 per year starting with the 2002 assessment, a
2.86% increase over the past year.
• The cost of the 2001 base assessment was $178,400.
• The cost estimate of providing an in-house City Assessor and
Appraiser staff would be $222,769 based on the following:
Position Salarv* Benefits** Total Cost
City Assessor $ 70,176. $ 23,158 $ 93,334
Senior Property Appraiser $ 51,468 $ 16,984 $ 68,452
Property Appraiser $ 45,852. $ 15,131 60 983
TOTAL COSTS $222,769
*Average salaries based on Stanton Group V Salary Bata.
**Benefit cost calculation based on 33% of salary base..
D. LEGAL
• The City and County may enter into a legal contract for the provision
of this service.
~ IV. ALTERNATIVE RECOMMENDATION(S) ~
• The City could elect not to renew this contract with Hennepin County.
However, if this contract were not renewed, the City would have to hire at
least three new employees to provide this service.
V . ATTACHMENTS
~ V 1. PRINCIPAL PARTIES EXPECTED AT MEETING
• Tom May, Hennepin County Assessor.
'.- • ' -
Contract No. A03251
AGREEMENT
THIS AGREEMENT, Made and entered into by and between the COUNTY OF
HENNEPIN, a political subdivision of the-State of Minnesota, hereinafter referred to as
the "COUNTY", and the CITY OF RICHFIELD, apolitical subdivision of the State of
Minnesota, hereinafter re#erred to as "CITY";
WHEREAS, said CITY lies wholly within the COUNTY OF HENNEPIN and
constitutes a separate assessment`district; and ' -
WHEREAS, under such circumstances, the provisions of Minnesota Statutes,
Section 273.072 and Minnesota Statutes, Section 471.59 permit the County Assessor
to provide for the assessment of property; and
WHEREAS, said CITY desires the COUNTY to perform certain assessments
on behalf of said CITY; and
WHEREAS, the COUNTY is willing to cooperate with said CITY by completing
the assessment in a proper manner;
NOW, THEREFORE, in consideration of the mutual covenants contained
herein, it is agreed as follows:
1. The COUNTY shall perform the 2002, 2003, 2004, and 2005 property
assessment for the CITY OF RICHFIELD in accordance. with property assessment
procedures and practices established and observed by the COUNTY, the validity and
reasonableness of which are hereby acknowledged and approved by the CITY. Any
such practices and procedures may be changed from time to time, by the COUNTY in
. its sole judgment, when good and efficient assessment procedures so require. The
. property assessment by the COUNTY shall be composed of those assessment services
which are set forth in Exhibit_A, attached hereto and made a part hereofi by this
reference, provided that the time frames set forth therein shall be considered to be
approximate only.
2. All information, records, data, reports, etc. necessary to allow the
COUNTY to carry out its herein responsibilities shall be furnished to the COUNTY
without charge by the CITY, and the CITY agrees to cooperate in good faith with the
.COUNTY in carrying out the work under this Agreement. .;,, .
3. The CITY agrees to furnish, without charge, office space needed by the
COUNTY at appropriate places in the CITY's offices. The keys thereto shall be
provided to the COUNTY. The CITY assures that such areas shall not be unattended,
during or after work of any kind by or on behalf of the CITY, in any area occupied by the
COUNTY as provided herein, or if unattended, the CITY shall make certain that such
areas are locked and secured. Such office space shall be sufficient in size to
accommodate reasonably three (3) appraisers and any furniture placed therein. The
office space shall be available for the COUNTY's use at any and all times during the
CITY's business hours, and during all such hours the COUNTY shall be provided with.
levels of heat, air conditioning and ventilation as are appropriate for the. seasons.
4. The CITY also agrees to provide appropriate desk and office furniture as
necessary, clerical and secretarial support necessary and reasonable for the carrying
out of the work herein, necessary office supplies and equipment, copying machines and
(2)
• fax machines and heir respective supplies, and :telephone service to the COUNTY, all
without charge to the COUNTY.
5. It shall be the responsibility of the CITY to have available at the CITY's
offices each CITY working day a person who has the knowledge and skill to be able to
answer routine questions pertaining to homesteads and property assessment matters
and to receive, evaluate and organize homestead applications. It shall also be the
responsibility of the CITY to promptly refer any homestead application which needs
investigation to the COUNTY. _ , ,, , , ,
6. In accordance with Hennepin County Affirmative Action Policy and the
County Commissioners' policies against discrimination, no person shall be excluded
from full employment rights or participation in or the benefits of any program, service or
• activity on the grounds of race, color, creed, religion, age, sex, disability, marital status,
sexual orientation, public assistance status, ex-offender status or national origin; and no
person who is protected by applicable Federal or State laws, rules and regulations
against discrimination shall be otherwise subjected to discrimination.
7. It is agreed that nothing herein contained is intended or should be
construed in any manner as creating or establishing-the relationship of joint venturers or
co-partners between the .parties hereto or as constituting the CITY as the agent,
representative or employee of the COUNTY for any purpose or in any manner
whatsoever.- -Any and all personnel of CITY or other persons, while engaged in the
performance of any activity under this Agreement, shall have no contractual relationship
with the COUNTY and shall not be considered employees of the COUNTY and any and
all claims that may or might arise under the Workers' Compensation Act of the State of
(3)
Minnesota on behalf of said personnel or other persons while so engaged, and .any and
all claims whatsoever on behalf of any such. person orpersonnel.-arising out of
employment or alleged employment including, without limitation, claims of
discrimination against the CITY, .its officers, agents, CITY or employees shall in no way
be the responsibility of the COUNTY, and CITY shall defend, indemnify and hold the
COUNTY, its officials, officers, agents, employees and duly authorized volunteers
harmless from any and all such- claims regardless of any determination of any pertinent
-~ tribunal,-agency, board, commission or court.: Such:personneLorother:persons shall
not require nor be entitled to any compensation, rights or benefits of any kind
whatsoever from the COUNTY, including, without limitation, tenure rights, medical and
hospital care, .sick and vacation leave, Workers' Compensation, Re-employment
Compensation, disability, severance pay and retirement benefits.
8. CITY agrees that it will defend, indemnify and hold the COUNTY, its
elected officials, officers, agents, employees and duly authorized volunteers harmless
from any and all liability (statutory or otherwise) claims, suits, damages, judgments,
interest, costs or expenses (including reasonable attorney's fees, witness fees and
disbursements incurred in the, defense thereof) resulting form or caused by any actor
omission of the CITY, its officers, agents, contractors, employees or duly authorized
volunteers in the performance of the responsibilities provided by this Agreement.
9. The COUNTY shall endeavor to perform all services called for herein in
an efficient manner. The sole and exclusive remedy for any breach of this Agreement
by the COUNTY and for COUNTY's liability of any kind whatsoever, including but not
limited to liability arising out of, resulting from or in any manner related to contract, tort,
(4)
warranty, statute or otherwise, shall be limited to correcting diligently anydeficiency in
said services as is reasonably possible under the pertinent circumstances.
10. Neither party hereto shall be deemed to be in default of any provision of
this Agreement, or for delay or failure in performance, resulting from causes beyond the
reasonable control of such party, which causes shall include, but are-not limited to, acts
of God, labor disputes, acts of civil or military authority, fire, civil disturbance, changes
in laws, ordinances or regulations which materially affect the provisions hereof, or any
other causes beyond the: parties' reasonable control. - .. . <;.::
11 This Agreement shall commence on August 1, 2001, and shall terminate
on July 31, 2005. Either party may initiate an extension of this Agreement for a term of
four (4) years by giving the other written notice of its intent to so extend no less
than 150 days prior to the termination of this Agreement. If the party who receives said
notice of intent to extend gives written notice to the other party of its desire not to
extend within 110 days prior to termination of this Agreement, this Agreement shall
terminate on July 31, 2005.
Nothing herein shall preclude the parties, prior to the end. of this Agreement, from
agreeing to extend this contract for a term of four (4) years. Any extended term hereof shall
be on the same terms and conditions set forth herein. Either party may terminate this
Agreement for "just cause" as determined by the Commissioner of Revenue after hearing for
such a determination. is held by the Commissioner of Revenue and which has been attended
by representatives of COUNTY and CITY or which said representatives had a reasonable
opportunity to attend, provided that after such determination, any party desiring to cancel this
. Agreement may do so by giving the other party no less than 120 days' written notice. If the
(5)
CITY should cancel: this Agreement, as .above provided, before the completion of.the hen
current property. assessment by the COUNTY, the CITY agrees to defend and hold the.
COUNTY, its officials, officers, agents, employees and duly authorized volunteers harmless
from any liability that might ensue as a result of the non-completion of a property tax
assessment.
For the purpose of this Agreement, the term "just cause" shall mean the failure
of any party hereto reasonably to perform a material responsibility arising hereunder.
12. A. In consideration>of aid assessment services, the CITY agrees to pay
the COUNTY the sum of One Hundred Eighty-three Thousand Five Hundred and
no/100 ($183,500.00) Dollars for each assessment, provided that any payment due in
July of any year (as below provided) may be increased or decreased by that amount
which exceeds or is less than the COUNTY's estimated cost of appraising new
construction-and new parcels for the current year's assessment. The amount of any
increase or decrease shall be specified in the billing forthe current year's assessment.
12.6.. Regarding each assessment, in addition to being subject to
adjustment in the above manner, said assessment cost of $183,500.00 may also be
increased by the COUNTY if:
(1) The COUNTY determines that any cost to the COUNTY in carrying
out any aspect of this Agreement has. increased, including but not
limited to the following types of costs: new construction and new
parcel appraisals, gasoline, postage, supplies, labor (including
fringe benefits) and other types of costs, whether similar or
dissimilar; and/or
2) The COUNTY reasonably determines that other costs should be
included in the costs of assessment work.
If the COUNTY desires, to increase the assessment cost pursuant to this
(6)
paragraph 12(b), it shall give written notice thereof by-June 15 of any year and such increase
shall apply to the assessment for the calendar year next following the current calendar year.
Any such notification shall specifically set forth the amounf of any new construction and new
parcel appraisal charges. Notwithstanding any provisions herein to the contrary, if any such
increase, exclusive of any charge for the estimated costs of new construction and new parcel
appraisals, exceeds ten (10%) percent of the amount charged for the assessment for the
then current calendar year, exclusive of any charge for the estimated costs of new
~:-,. - constructionand new parcel appraisals, the CITY.may-cancel his Agreement by giving to the
COUNTY written notice thereof, provided that said cancellation notice must be received by
the COUNTY not later than July 24 of the then current calendar year and said cancellation
shall be effective no earlier than five (5) days after the receipt of said notice by the COUNTY
• and not later than July 31 of said current calendar year. Supportive records of the cost
increase will be open to inspection by the CITY at such times as are mutually agreed upon
by the COUNTY and CITY.
Failure of the COUNTY to give the CITY aprice-change notice by June 15
shall not preclude the COUNTY from giving CITY such notice after said date but prior to
September 1 of any year, provided that if such price increase exceeds said ten (10%) -
all as above set forth -the CITY may cancel this Agreement if the COUNTY receives
notice thereof not later than thirty-nine (39) days from the date of receipt by the CITY of
any said late price-change notice, provided further that any such cancellation shall be
effective not earlier than five (5) days after COUNTY's receipt of said cancellation
notice and not later than forty-six (46) days after the C11"Y's receipt of any said price-
increase notice.
(7)
Payment for each assessment shall be made in the following manner:
Approximately one-half (1/2) of the cost of an assessment (the amount payable being
set forth in a bill sent by the COUNTY to the CITY shall be paid by the CITY no later
than the fifteenth (15th) day of the December which precedes the pertinent assessment
year; and the remaining portion of said cost (the amount payable being set forth in a bill
sent by the COUNTY to the CITY) shall be paid by the CITY no later than July 15 of the
pertinent assessment year.
The -COUNTY may-bill the CITY after the aforesaid dates and in each.,such
case, the CITY shall. pay such bill within fifteen (15) days after receipt thereof. In the
event the CITY receives a bill less than fifteen (15) days before said December 15 or
said July 15, such bill shall be paid not more than fifteen (15) days after its receipt.
13. Any notice or demand, which may or must be given or made by a party
hereto, under the terms of this Agreement or any statute or ordinance, shall be in writing
and shall be sent registered or certified mail to the other party addressed as follows:
TO CITY: Mayor, City of Richfield
6700 Portland Avenue South
Richfield, MN 55423
TO COUNTY: Hennepin County Administrator
2300A Government Center
Minneapolis, MN 55487
copies to: County Assessor
Hennepin County
2103A Government Center
Minneapolis, MN 55487
Assistant County Assessor
Hennepin County
2103A Government Center
Minneapolis, MN 55487
Any party may designate a different addressee or address at any time by giving
written notice thereof as above rovided. An notice, if mailed ro erl addressed
p Y ,p p Y
(8)
• postage prepaid, registered or certified mail, shall be deemed dispatched on the
registered date or that stamped on the certified mail receipt and shall be deemed
received within the second business day thereafter or when it is actually received,
whichever is sooner. Any notice delivered by hand shall be deemed received upon
actual delivery.
14. It is expressly understood that the obligations of the CITY under
Paragraphs 7, 8, 11, and 12 hereof and the obligations of the CITY which, by their
sense and context, are intended to survive the performance thereof by the CITY, shall
so survive the completion of performance, termination or cancellation of this
Agreement.
• [Remainder of page intentionally left blank.]
•
~9)
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by its duly authorized officers and delivered: on its behalf, this day of
2001.
COUNTY OF HENNEPIN, STATE OF MINNESOTA
APP~OV AS TO FORM: BY:
~ Chair of the, County Board
~sistant C n - n y And:
Date: Assistant/Deputy/County Administrator
APPRO D S T
EXECUTION:
ATTEST:
Deputy/Clerk of the County Board
Assistant County Attorney CITY OF RICHFIELD
Date:
By.
ItS Mayor
And:
Its City Manager
The above Agreement No. A03251 is hereby approved by the Commissioner of
Revenue this day of , 2001.
COMMISSIONER OF REVENUE
Cityorganized under:
Statutory Option A
•
Option B Charter
(10)
•
Contract No. A03251 -
EXHIBIT A
•
•
CITY OF RICHFIELD
During the contract term, the County shall:
1. Physically inspect and revalue 25% of the real property, as required bylaw.
2. Physically inspect and value all new construction, additions and renovation.
3. Conduct valuation reviews prior to Board of Review -approximate dates:
March through May 15.
4. Attend Board of Review. Per Board request, make all necessary review
appraisals. Approximate dates: April 1 -May 31 .
5. Keep updated field card file -current values, homestead and classification
data.
6. Print,-mail and post valuation notices and homestead cards, postage at
expense of the CITY.
7. Respond to taxpayers regarding assessment or appraisal problems or inquiries
periodically.
8. Make divisions and combinations periodically.
9. Administer the abatement process pursuant to Minn. Stat. § 375.192 (2000).
10. Make appraisals. for, testify or negotiate all District Court or Tax Court filings.
11. Post values from appraisal cards to assessment rolls.
12. Adjust estimated market values on those properties not physically inspected as
needed and per sales analysis.
(11)
•
AGENDA SECTION:
AGENDA ITEM #
REPORT #
CONSENT CALENDAR
5B
87
STAFF REPORT
CITY COUNCIL MEETING
APRIL 9, 2001
•
•
BRUCE SYLVESTER,
REPORT PREPARED BY: PLANNING & ZONING ADMINISTRATOR
NAME, TITLE
REPORT PRESENTER: BRUCE PALMBORG,
COMMUNITY DEVELOPMENT DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
SIGNATURE
REVIEWED BY CITY MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
'' Consideration of the attached resolution regarding a Conditional Use Permit. (CUP) to allow
Qwest Wireless to construct a 59-foot Commercial Wireless Telecommunication Service tower
at Madison Park, 6244 Knox Avenue.
I. RECOMMENDED ACTION:
By Motion: Approve the attached resolution regarding a Conditional
Use Permit to allow the construction of a Commercial Wireless
Telecommunication Service tower at 6244 Knox Avenue (Madison
Park .
II. .BACKGROUND
Qwest Wireless is proposing to construct a 59-foot Commercial Wireless
Telecommunication Service (CWTS) mono-pole tower along the northern edge of
Madison Park. A pad for equipment for the antennae will also. be constructed at the
base of the pole. Richfield's Recreation Services Division and the Community
Services Commission have worked closely on this project and have signed off on
the overall proposal as well as the specific design details of the proposed tower.
0409QwestTower.doc
• The Planning Commission held a public hearing for this request on March 27, 2001.
No neighbors opposed the proposed tower. The Planning Commission
recommended approval of the requested CUP-including stipulations identified by
Jim Topitzhofer Director of Recreation Services-at the same meeting (contained in
the attached resolution).
III. BASIS OF RECOMMENDATION
A. POLICY
• The location at 6244 Knox Avenue is currently zoned R (single family
residential). The current use of this parcel is City Park. The
Comprehensive Plan map also identifies this parcel for park use.
• Richfield Zoning Code Section 521.07 (Conditional Uses for Residential
Zones) Subdivision 10 lists CWTS towers and related features as
permitted conditional uses, "provided that they conform to Section 426 of
the City Code, and that they are located in the following residentially
zoned locations: church, park, government, school, utility and
institutional sites."
• City Code Section 426 provides guidelines for CWTS towers and
antennae. This proposed CWTS tower at 6244 Knox Avenue meets the
requirements provided in Section 426,. including a requirement that any
tower in a residentially zoned area be separated from the lot line of any
• properties with residential uses by 1.5 times the height of the tower.
• Comprehensive Plan Section 3 addresses City infrastructure. Section
3.6 deals specifically with telecommunication issues and states "The City
.should encourage utilities to upgrade their systems with the most
effective and reliable elements available so as to provide the highest
quality services and reduce service interruptions." (page 3-11)
B. CRITICAL ISSUES
• The City of Richfield has agreed upon a lease with Qwest for this
proposed tower and equipment.
C. FINANCIAL
• No City funds are required. The City will receive $850 per month for
leasing space for this tower to Qwest Wireless. These funds will go to the
Recreation Service's Enterprise Fund budget.
D. LEGAL
• Federal law requires cities to make reasonable accommodation for
commercial wireless telecommunication facilities.
• IV. ALTERNATIVE RECOMMENDATION~S~
• Reject the resolution and deny the requested Conditional Use Permit to allow
the construction of a CWTS tower at 6244 Knox Avenue (Madison Park).
V. ATTACI-IMENTS
• City Council Resolution
• Site Plan
• Elevation
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Phyllis O'Connell Real Estate Manager, Qwest Wireless
•
RESOLUTION NO.
RESOLUTION FOR APPROVING A CONDITIONAL USE PERMIT
AT 6244 KNOX AVENUE (MADISON PARK)
WHEREAS, an application has been filed with the City of Richfield which requests
approval of a conditional use permit for a Commercial Wireless Telecommunication
Service tower and antenna on land generally located at 6244 Knox Avenue South
(Madison Park), legally described as:
That parcel which lies east of the east line of Block One of Henry Thernell's
Addition, west of the west line of Block Five of Grass Lake Terrace Addition, ..north
of the north Right of Way line of 63rd Street, and south of the south Right of Way
line of Minnesota Trunk Highway 62, all in the City of Richfield, Section 28,
Township 28, Range 24.
WHEREAS, the City has fully considered- the request for approval of the conditional
use permit; and
WHEREAS the proposed use is consistent with the goals, policies, and objectives
of the City's Comprehensive Plan; and
WHEREAS the proposed use is or will be in compliance with the performance
standards specified in Sections 426 of City Code; and
WHEREAS the proposed use will not have undue adverse impacts on
governmental facilities, utilities, services, or existing or proposed improvements; and
WHEREAS the use will not have undue adverse impacts on the public health,.
safety, or welfare; and
WHEREAS there is a public need for such use at the proposed location; and
WHEREAS the proposed use meets or will meet all the specific conditions set by
the City Code for the granting of such conditional use permit.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the .City of
Richfield, Minnesota, as follows:
A conditional use permit is issued for a Commercial Wireless
Telecommunication Service tower and antennae, as described in City
Council Staff Report No. , on the Subject Property legally described
above.
2. The conditional use permit is subject to the following stipulations:
• .That the equipment structure shall be located on the north side of the
berm, which follows the MNDOT fence along HWY 62;
• That the equipment structure shall be installed on a poured concrete pad,
which. extends at least six inches beyond the perimeter of the equipment
and which shall allow asix-foot mowing path between the pad and the
MNDOT fence. If a retaining wall is necessary, it shall not exceed a
height of 2 feet;
• That luminaire specifications shall be provided. The location of the
luminare shall be provided to City staff in advance of installation. Qwest
shall be responsible for electric service to luminaire;
• That vehicles used for installation of concrete pad, equipment, and
antenna shall use the bituminous path to enter and exit the construction
site;
• That the path of electric service cable shall follow outside of the
bituminous path and shall not be allowed to travel beneath;
• That Blue Spruce trees in landscape plan shall be replaced with Austrian
Pine or Red Pine;
• That a fence enclosure shall not be erected to screen mechanical
equipment;
• .That the lease between the City of Richfield and Qwest shall state that
Qwest shall agree to repair damage to park caused from equipment
installation within 30 days of installation;
• That, Qwest shall notify the Recreation Department of installation
schedule at least seven-days in advance so that adjustments can be
made to the summer playground program and evening athletic
association usage;
Also,
• That this resolution be recorded with the County, pursuant to Minnesota
Statute Section 462.36, subdivision 1.
3. The conditional use permit shall remain in effect for so long as conditions
regulating it are observed, and the conditional use permit shall expire if
normal operation of the use has been discontinued for 12 or more months, as
required by the Zoning Ordinance, Section 546.05, Subd. 9
2001.
Adopted by the City Council of the City of Richfield, Minnesota this 9th day of April,
Martin J. Kirsch, Mayor
ATTEST:
Nancy Gibbs, City Clerk
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•
AGENDA SECTION: Consent
AGENDAITEM# 5A
REPORT # $
STAFF REPORT
CITY COUNCIL MEETING
APRIL 9, 2001
REPORT PREPARED BY:
STEVEN L. DEVICH, ADMINISTRATIVE
SERVICES DIRECTOR
N,~, TITLE
REPORT PRESENTER:
STEVEN L. DEVICH, ADMINISTRATIVE
N,~,
•
DEPARTMENT DIlZECTOR REVIEW:
REVIEWED BY CITY MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Authorization of lease for antenna space on City Hall radio tower to Sprint Spectrum. L.P.
I. RECOMMENDED ACTION:
By Motion: Authorize the City Manager to execute a lease agreement
with Sprint Spectrum for antenna space on the radio tower at City
Hall.
II. BACKGROUND
As Council Members are aware, the mobile telephone industry continues to grow in
the Twin Cities marketplace. A number of firms have authorization to establish
telecommunications towers and operations in the Minneapolis/St. Paul area. As
such, those firms are generally approaching cities and schools in order to negotiate
lease agreements for the use of some of their respective facilities for antenna
space. Lighting, radio and water towers are such facilities that provide an excellent
base for antenna space.
The City has previously approved lease agreements with APT, Sprint and Airtouch
Cellular at the Penn and Logan Avenue water towers. The City has recently been in
discussions for several months with Sprint for location of an antenna on the radio
tower at City Hall.
0409Sprint
After considerable discussion, Sprint and the City have come to tentative approval
of a lease agreement including plans for the ground structure required to support
the antenna facilities. The major terms of the lease, which follow very closely a
model lease developed by the League of Minnesota Cities, are as follows.
1. .The lease. is to begin June 1, 2001 pending approval of other agencies such as
the FCC and will end on December 31, 2006. The term of the lease may be
extended for three additional five-year periods.
2. The lease for the tower antenna space shall be $16,500 for the initial year and
be increased annually by four percent or the CPI, whichever is greater, over the
previous year's annualized rent.. However, 2001 will be prorated for the period
June 1 through December 31.
3. The facility that would be needed by Sprint to provide support service to the
antenna mounted would be incorporated into a building constructed at the rear
of City Hall adjacent to the radio tower.- The building-would match the exterior
materials of City Hall .and would incorporate space to house all of the equipment
needed for the City's new 800 megahertz radio system.
4. Sprint would be given .rent credit for their $70,000 cost of constructing the new
building. This will equal approximately four years of rent credit.
5. An engineering study was conducted at Sprint's expense to assure that the radio
tower could handle Sprint's antenna in addition to all of the City's 800 megahertz
needs.
III. BASIS OF RECOMMENDATION
A. POLICY
• The antenna. on the radio tower will not cause any problems or
interference with the communications of the City.
• .The lease, in its entirety, provides for many favorable provisions and
protections for the City of Richfield, and in most respects either
equals or exceeds the standards set forth in the League of Minnesota
Cities' model lease.
• Sprint has agreed to the terms of the lease agreement.
B. CRITICAL ISSUES
• Staff is requesting approval at the April 9 City Council meeting so that
Sprint may begin activity in conjunction with establishing this antenna
space and the support structures needed to accompany it.
• Timing of this lease is very important because the ground structure for
the antenna lease is necessary for the 800 megahertz upgrade.
C. FINANCIAL
• The $16,5000 annual lease payment is a fair amount and is
commensurate with what Richfield and other cities are getting for
similar antenna facilities in the metro area.
• The building constructed by Sprint saves the City from having to
construct a building to house its 800-megahertz equipment, thereby
significantly reducing the up-front costs of the project.
D. LEGAL .
• The lease document has been reviewed and approved by the City
Attorney's Office.
IV. ALTERNATIVE RECOMMENDATION(S~ ,
• The City Council could defer action on this item to a future meeting.
V. ATTAC~IMENTS
• Lease.
VI. PRINCIl'AL PARTIES EXPECTED AT MEETING
• None.
• SITE LEASE AGREEMENT
THIS SITE LEASE AGREEMENT ("Lease"), made this day of , 2001
between the City of Richfield ("Landlord"), and SPRINT SPECTRUM LP, a Delaware Limited
Partnership (`Tenant").
For good and valuable consideration, the parties agree as follows:
A. Landlord is the owner of certain real property (the "Property") known as 6700
Portland Avenue South, located in Hennepin County, Minnesota, legally described in
Exhibit A attached hereto, and incorporated by reference. The Property has been improved
with an existing building (the "Building") and a communications tower (the "Tower").
B. Tenant desires to Lease a portion of the Property consisting of Tower space for an
antenna system, and space for the location of equipment on the roof of a yet to be
constructed addition to the Building (the "Building Addition"), as well as a right of access
for ingress and egress and utilities thereto.
C. Landlord desires that Tenant construct the Building Addition. Upon completion of
construction, Tenant will relinquish ownership of the building Addition as partial
consideration for Tenant's duties and obligations in the Lease, as provided in section 2(c).
1. Leased Premises.
(a) Description of Premises. Subject to the terms and conditions of the Lease, Landlord
hereby leases to Tenant and Tenant leases from Landlord a portion of Landlord's property, located
at 6700 Portland Avenue South, County of Hennepin, State of Minnesota, legally described in
Exhibit A attached hereto, consisting of Building Addition rooftop space for equipment, subject to
any and all existing easements, and a portion of the Tower on which directional antennas,
connecting cables and appurtenances will be attached and located, the exact location of each to be
reasonably approved by Landlord, together with appurtenant access rights (the "Leased Premises").
The Leased Premises are depicted in Exhibit B attached hereto.
(b) Building Addition. The design and installation of the Building Addition shall be in
accordance with the plans attached hereto as Exhibit C and incorporated herein by reference.
Tenant shall bear all costs and expenses associated with the site preparation and construction of the
Building Addition, and shall construct the Building Addition in conformance with all federal, state
and local laws and regulations. Upon completion of the Building Addition, Tenant shall execute a
Bill of Sale and Quit Claim Deed to Landlord conveying ownership of the Building Addition, free
and clear of all liens and encumbrances. Subsequent maintenance and replacement of the Building
Addition shall be the responsibility of the Landlord. Tenant shall bear all costs and expenses for the
construction, installation and maintenance of the communications equipment, antenna systems,
waveguides, computers and related equipment (the "Cellular Equipment") placed on the Tower or
the Building Addition.
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• 2. Rent.
(a) Amount, adjustments. As consideration for this lease, Tenants shall pay Landlord an
annual rent in the amount of fifteen thousand and ($15,000.00) for the initial year. Said lease
payment shall be increased each year on January 1 by the greater of: 1) 4% of the previous year's
annualized rent or 2) by an amount equal to the increase in the Consumer Price Index (CPI[I). The
CPI shall mean the Consumer Price Index for all Urban Consumers. All Cities as published by the
United States Department of Labor Statistics or if there shall be no successor index, such
comparable index as mutually agreed upon by the parties.
(b) Time of Payment, Taxes. Landlord shall communicate all rental increases to the
Tenant in writing by the preceding December 1 of each year. The annual rental shall be paid before
January 1 of each year. For this first year, the rental shall be prorated through December 31 and
shall be paid to Landlord in full at the time Lease is executed. If the Tenant does not meet the
requirements referenced in Subparagraph 3(a) below, and Tenant has diligently pursued such
requirements, Landlord shall refund the Tenant rental payment made at the time of Lease execution
and this Lease shall terminate. In addition to the annual rental, Tenant agrees to timely pay its
prorata share of any taxes or payment in lieu of taxes required as a result of this Lease.
(c) Credit for Construction. Inconsideration for Tenant's construction of the Building
Addition, Tenant shall receive a credit of $ ,which credit shall be taken as a reduction
in the rent owed by Tenant to Landlord under the Lease. This credit shall reduce the first dollars
Tenant owes Landlord for rent. As soon as the credit is exhausted, the Tenant shall commence
paying Landlord the rental amounts due under the Lease.
3. Governmental Approval Contin~ency.
(a) Tenant Application. Tenant's right to use the Leased Premises is expressly made
contingent upon its obtaining all the certificates, permits, zoning and other approvals that may be
required by any federal, state, or local authority. This shall include the engineering study specified
in Subparagraph 3(b) below on the Structure to be conducted at Tenant's expense. Landlord shall
cooperate with Tenant in its efforts to obtain and retain such approvals and shall take no action
which would adversely affect the status of the Leased Premises with respect to the Tenant's
proposed use thereof
(b) Interference Study. Before obtaining a building permit, Tenant must pay for the
reasonable cost of (i) radio frequency interference study an carried out by independent and qualified
professional selected by the Landlord showing that Tenant's intended use will not interfere with
existing communications facilities and (ii) an engineering study showing that the Structure is able to
support the Tenant's Facilities, as defined in Subparagraph 5(b), without prejudice to the City's use
of the Structure. If the study finds that there is a potential far interference that cannot be reasonably
remedied or for prejudice to the Structure, Landlord may terminate this Lease immediately and
refund the initial rental to Tenant.
(c) Non-approval. In the event that any application necessary under Subparagraph 3(a)
above is finally rejected or any certificate, permit, license, or approval issued to Tenant is canceled,
expires, lapses, or is otherwise withdrawn or terminated by governmental authority so that Tenant,
in is sole discretion, will be unable to use the Leased Premises for its intended purposes, its Tenant
RTV-194572vI 2
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shall have the right to terminate this Lease and be reimbursed for the rental payment if made
pursuant to Subparagraph 2(b) above. Notice of Tenant's exercise of its right to terminate shall be
given to Landlord in writing by certified mail, return receipt requested, and shall be effective upon
receipt of such notice by Landlord as evidenced by the return receipt. Except as required under
Subparagraph 13(d) below, upon such termination, this Lease shall become null and void and the
parties shall have no further obligations to each other.
4. Term and Renewals. The "Initial Term" of this Lease shall commence on June 1,1999
("Effective Date's and end on December 31 ofthe fifth calendar year (December 31, 2004) ofthe
Lease. Subject to the terms and conditions of this Lease, Tenant may extend the term of this Lease
for three (3) additional five (5) year renewal periods ("Renewal Term") commencing on January 1
following the expiration date of the Initial Term or of any subsequent Renewal term. Tenant shall
have elected to extend the term for each Renewal Term unless Tenant sends written notice to
Landlord of Tenant's intention not to extend at least 90 days prior to each Renewal Term. Initial
Term or any second or third Renewal Term, such notice provided in accordance with Paragraph 19
of the Lease,
5. Tenant's Use.
(a) User Priority. Tenant agrees that the following priorities of use, in descending order,
shall apply in the event of communication interference or other conflict while this Lease is in effect,
and Tenant's use shall be subordinate accordingly:
1. Landlord;
2. Public safety agencies, including law enforcement, fire, and ambulance
services, that are not part ofthe Landlord;
3. Other governmental agencies where use Is not related to public safety;
4. Tenant: and
5. Government-regulated entities whose antennae offer a service to the general
public for a fee, in a manner similar to a public utility, such as long distance
and cellular telephone, not including radio or television broadcasters.
(b) ses. The Tenant shall have the exclusive use of the Leased Premises only for
the purpose of installing, maintaining, and operating aLandlord-approved communications antenna.
facility, equipment, cabinets, and uses incidental thereto for providing radio and wireless
telecommunication services which Tenant is legally authorized to provide to the public. Tenant's
use of any other portion of Landlord's property (including that portion of the tower not included in
the definition of "Leased Premises" in Section 1 hereof] shall be nonexclusive and Landlord
specifically reserves the right to allow such other property to be used by other parties and to make
additions, deletions, or modifications to its own facilities on such property. Tenant's
communications antenna facility shall consist of antennas at aLandlord-approved location, along
with cable and appurtenances connected a cabinet located on the Leased Premises ("Antenna
Facilities"). Tenant shall comply with all applicable ordinances, statutes and regulations of local,
state and federal government agencies.
(c) Construction, Tenant may erect and operate an antenna array in accordance with its
submitted application attached as Exhibit B. If Tenant seeks to increase the number of antennas, it
must first pay for an evaluation carried out by a qualified professional, retained by Landlord
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demonstrating that (i) each additional antenna will not interfere with existing antenna or with
proposed antennas with a higher priority and that (ii) any Structure can structurally support the
additional arrtennas. The cost of each evaluation must be paid by the Tenant within 30 days after
receiving written notice of the cost. Landlord must consent to installation of additional antennas;
such consent will not be unreasonably withheld. If Landlord consents, the parties will negotiate the
amount of additional rental for the antennas.
(d) ration. Tenant shall have the right, at its sole cost and expense, to operate and
maintain the Antenna Facilities on the Leased Premises in accordance with good engineering
practices, with all applicable FCC rules and regulations. Tenant's installation of all Antenna
Facilities shall be done according to plans approved by Landlord, which approval shall not be
unreasonably withheld. Any damage done to the Leased Premises or other Landlord property
including the Structure during installation or during operations shall be repaired at Tenant's expense
within 30 days after notification of damage. The Antenna Facilities shall remain the exclusive
property of the Tenant, unless otherwise provided in this Lease.
(e) Maintenance, Improvement Expenses. All modifications to the Leased Premises and
all improvements made for Tenant's benefit shall be at the Tenant's expense and such
improvements, including antenna, facilities and equipment, shall be maintained in a good state of
repair, at least equal to the standard of maintenance of the Landlord's facilities on or adjacent to the
Leased Premises, and secured by Tenant. If Tenant's Antenna Facilities are mounted on the
Structure they shall, at all times, be painted,. at Tenant's expense, the same color as the Structure.
(fj Replacements. Before the Tenant may update or replace the Antenna Facilities,
Tenant must notify and provide a detailed proposal to Landlord. Tenant shall submit to Landlord a
detailed proposal for any such replacement facilities and any other information reasonably requested
by Landlord of such requested update or replacement, including but not limited to a technical study,
carried out at Tenant's expense. Landlord may not unreasonably withhold approval.
(g) Drawings. Tenant shall provide Landlord with as-built drawings of the equipment
and improvements installed on the Leased Premises, which show the actual location of all Antenna
Facilities. Said drawings shall be accompanied by a complete and detailed inventory of all
equipment, personal property, and Antenna Facilities actually placed on the Leased Premises.
(h) No Interference. Tenant shall, at its own expense, maintain any equipment on or
attached to the Leased Premises in a safe condition, in good repair and in a manner suitable to
Landlord so as not to conflict with the use ofthe surrounding premises by Landlord. Tenant shall
not unreasonably interfere with the operations of any prior tenant using the Structure and shall not
interfere with the working use of the water storage facilities thereon or to be placed thereon by
Landlord.
(i) Access. Tenant, at all times during this Lease, shall have access to the Leased
Premises in order to install, operate, and maintain its Antenna Facilities. Tenant shall have access to
the Structure only with the approval of Landlord. Tenant shall request access to the Structure
twenty-four (24) hours in advance, except in an emergency, and Landlord's' approval thereof shall
not be unreasonably withheld or delayed. In the event it is necessary for Tenant to have access to
the Structure at some time other than the normal working hours of Landlord, Landlord may charge
RJV-194572v1 4
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Tenant for whatever reasonable expense, including employees' wages, that Landlord may incur in
providing such access to Tenant.
(j) Payment ofUtilities. Tenant shall separately meter charges for the consumption of
electricity and other utilities associated with its use of the Leased Premises and shall promptly pay
all costs associated therewith.
6. Emer~ency Facilities. In the event of a natural or man-made disaster, in order to protect
the health, welfare, and safety of the community, Tenant may erect additional Antenna Facilities
and install additional equipment on a temporary basis on the Leased Premises to assure to
continuation of service. Such temporary operation shall not exceed go days unless Tenant obtains
written approval from the Landlord.
7. Additional Maintenance Expenses. Upon notice from Landlord, Tenant shall promptly
pay to Landlord all additional Landlord expenses incurred in maintaining the Leased Premises,
including painting or other maintenance ofthe Structure that are caused by Tenant's occupancy of
the Leased Premises.
8. Defense and Indemnification.
(a) General. Tenant agrees to defend, indemnify and hold harmless Landlord and its
elected officials, officers, employees, agents, and representatives from and against any and all
claims, costs, losses, expenses, demands, actions, or causes of action, including reasonable
attorneys' fees and other costs and expenses of litigation, which may be asserted against or incurred
by Landlord or for which Landlord may be liable in the performance ofthis Lease, except those
which arise solely from the negligence, willful misconduct, or other fault of Landlord. Tenant shall
defend all claims arising out ofthe installation, operation, use, maintenance, repair, removal, or
presence of Tenant's Antenna Facilities, equipment and related facilities on the Leased Premises.
(b) Hazardous Materials. Without limiting the scope of Subparagraph 9(a) above,
Tenant will be solely responsible for and will defend, indemnify, and hold Landlord, its agents, and
employees harmless from and against any and all claims, costs, and liabilities, including attorney's
fees and costs, arising out of or in connection with the cleanup or restoration of the Leased Premises
associated with the Tenant's use of Hazardous Materials.
Landlord will be solely responsible for and will defend, indemnify, and hold Tenant, its
agents, and employees harmless from and against any and all direct claims, costs, and liabilities,
including reasonable attorney's fees and costs, arising out of in connection with the removal,
cleanup, or restoration of the Leased Premises with respect to Hazardous Materials from any and all
sources other than those Hazardous Materials introduced to the Leased. Premises by Tenant and their
agents, including independent contractors. Nothing herein shall be deemed a waiver by Lessor of
the limitations on liability set forth in Minnesota Statutes, Chapter 466.
For purposes of this Lease, "Hazardous Materials" shall be interpreted broadly and
specifically includes, without limitation, asbestos, petroleum, fuel, batteries PCBs or any hazardous
substance, waste, or materials as defined in any federal,. state or local environmental or safety law or
regulations including, but not limited to, CERCLA, and the Clean Waxer Act.
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(c) Tenant's Warranty. Tenant represents and warrants that its use of the Leased
Premises will not generate and Tenant will not store or dispose of on the Leased Premises, nor
transport to or over the Leased Premises, any Hazardous Materials, unless Tenant specifically
informs Landlord thereof in writing twenty four hours prior to such storage, disposal or transport, or
otherwise as soon as Tenant becomes aware of the existence of Hazardous Materials on the Leased
Premises.
The obligations of this Paragraph 9 shall survive the expiration or other termination of this
Lease.
9. Insurance.
(a) Workers' Compensation. The Tenant must maintain Workers' Compensation
insurance in compliance with all applicable statutes. The policy shall also provide Employer's
Liability coverage with limits of not less than $500,000 Bodily Injury each accident, $500,000
Bodily Injury by disease, policy limit, and $500,000 Bodily Injury by disease, each employee.
(b) General Liability. The Tenant must maintain an occurrence form comprehensive
general liability coverage. Such coverage shall include, but not be limited to, bodily injury, property
damage -broad form, and personal injury, for the hazards ofPremises/Operation, broad form,
contractual, independent contractors, and products/completed operations.
The Tenant must maintain aforementioned comprehensive general liability coverage with
limits of liability not less than $5,000,000 each occurrence; $5,000,000 personal and advertising
injury; $5,000,000 general aggregate, and $5,000,000 products and completed operations aggregate.
These limits may be satisfied by the comprehensive general liability coverage or in combination
with an umbrella. or excess liability policy, provided coverage afforded by the umbrella or excess
policy are no less than the underlying comprehensive general liability coverages.
(c) Automobile Liability. The Tenant must carry Automobile Liability coverage.
Coverage shall afford total liability limits for Bodily Injury Liability and Property Damage Liability
in the amount of $5,000,000 per accident. The liability limits may be afforded under the
Commercial Policy, or in combination with an Umbrella. or Excess Liability Policy provided
coverage of ridges afforded by the Umbrella. Excess Policy are no less than the underlying
Commercial Auto Liability Coverage.
Coverage shall be provided for Bodily Injury and Property Damage for the ownership, use,
maintenance or operation of all owned, non owned and hired automobiles.
The Commercial Automobile Policy shall include at least statutory personal injury
Protection, uninsured motorists and underinsured motorists coverages.
(d) Tenant Property Insurance. The Tenant must keep in force for the duration of the
Lease a policy covering damages to its property at the Leased Premises. The amount of coverage
shall be sufficient to replace the damaged property, loss of use and comply with any ordinary or law
requirements.
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(e) Additional Insured -Certificate of Insurance. The Tenant shall provide, prior to
tenancy, evidence of the required insurance in the form of a Certificate of Insurance issued by a
company (rated B+12 or better), licensed to do business in the state of Minnesota, which includes
all coverages required in this Paragraph 10. Tenant will list the Landlord as an Additional Insured
on the General Liability and Commercial Automobile Liability Policies. The Certificate(s) shall
also provide the coverage may not be canceled, non-renewed, or materially changed without thirty
(30) days prior written notice to the Landlord.
10. Damage or Destruction. If the Leased Premises is destroyed or damaged, without
contributory fault of the Tenant or its agents, so as, in Tenant's judgement, to hinder its effective use
of the Antenna Facilities, Tenant may elect to terminate the Lease, upon 30 days' written notice to
Landlord. In the event Tenant elects to terminate the Lease, Tenant shall be entitled to
reimbursement of pre-paid rent covering the period subsequent to the date of damage to or
destruction of the Leased Premises.
11. Lease Termination.
(a) Events of Termination. Except as otherwise provided herein, this Lease may be
terminated by either parry upon sixty (60) days written notice to the other parry as follows:
(i) by either party upon a default of any covenant or term hereof by the other
party, which default is not cured within sixty (60) days of receipt of written notice of default
to the other party (without, however, limiting any other rights of the parties pursuant to any
other provisions hereofj:
(ii) by Tenant for cause if it is unable to obtain or maintain any license,. permit or
other governmental approval necessary for the construction and/or operation of the Antenna
Facilities or Tenant's business;
(iii) by Tenant for cause if the Leased Premises is or becomes unacceptable for
technological reasons under the Tenant's Antenna Facilities, design or engineering
specifications or the communications systems to which the Antenna Facilities belong;
(iv} by Landlord, if its Council decides, for any reason to redevelop the Leased
Premises and/or discontinue use of the Structure for all purposes. If Landlord decides to
discontinue use to redevelop the Leased Premises, Landlord shall provide aone-year written
notice to Tenant.
(v) by Landlord if it determines that the Structure is structurally unsound,
including, but not limited to, consideration of age of the Structure, damage-or destruction of
all or part of the Structure on the Leased Premises from any source, or factors relating to
condition of the Leased Premises;
(vi} or by Landlord if it determines that a potential user with a higher priority
under Subparagraph 3(a) above cannot find another adequate location, or the Antenna
Facilities unreasonably interfere with another user with a higher priority, regardless of
whether or not such an interference was predicted in the initial interference study that was
part of the application process; or
RJV-194572v1 7
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(vii) by Landlord if it determines that Tenant has failed to comply with applicable
ordinances, or state or federal law, or any conditions attached to government approvals
granted thereunder, after a public hearing before the Landlord's Council.
(b) Notice of Termination. The parties shall give notice of termination in writing by
certified mall, return receipt requested. Such notice shall be effective upon receipt as evidenced by
the return receipt. All rentals paid for the Lease prior to said termination date shall be retained by
Landlord.
(c) Tenant's Liability for Early Termination. If Tenant terminates this Lease other than
of right as provided this in Lease, Tenant shall pay to Landlord as liquidated damages for early
termination, 150% of the annual rent for the year in which Tenant terminates unless Tenant
terminates during the last year of any Term under Paragraph 4 and Tenant has paid the annual rent
for that year.
(d) Site Restoration. In the event that this Lease is terminated or not renewed, Tenant
shall have 60 days from the termination or expiration date to remove its Antenna Facilities, and
related equipment from the Leased Premises, repair the site and restore the surface of the Structure.
Upon the commencement of this Lease, Tenant shall provide a performance bond in the amount of
$5,000,000 to guarantee timely restoration of the Site following any lease termination. In the event
that Tenant's Antenna Facilities, and related equipment are not removed to the reasonable
satisfaction of the Landlord, they shall be deemed abandoned and become the property of the
Landlord and Tenant shall have no further tights thereto.
12. Limitation of Landlord's Liability. If Landlord terminates this Lease other than as of
right as provided in this Lease, or Landlord causes interruption of the business of Tenant or for any
other Landlord breach ofthis Lease, Landlord's liability for damages to Tenant shall be limited to
the actual and direct costs of equipment removal, relocation or repair and shall specifically exclude
any recovery for value of the business of Tenant as a going concern, firture expectation of profits,
loss of business or profit or related damages to Tenant.
13. Temporary Interruptions of Service If Landlord determines that continued operation of
the Antenna Facilities would cause or contribute to an immediate threat to public health and/or
safety (except for any issues associated with human exposure to radio frequency omissions, which
is regulated by the federal government), Landlord may order Tenant to discontinue its operation.
Tenant shall immediately comply with such an order. Service shall be discontinued only for the
period that the immediate threat exists. If Landlord does not give prior notice to Tenant, Landlord
shall notify Tenant as soon as possible after its action and give its reason for taking the action.
Landlord shall not be liable to Tenant or any other party for any interruption in Tenant's service or
Interference with Tenant's operation of its Antenna Facilities, except as may be caused by the
willful misconduct of the landlord, its employees or agents. If the discontinuance extends for a
period greater than three days, either consecutively or cumulatively, Tenant shall have the right to
terminate this Lease within its sole discretion.
•
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14. Tenant Interference.
(a) With Structure. Tenant shall not interfere with Landlord's use ofthe Structure and
agrees to cease all such actions which unreasonably and materially interfere with Landlord's use
thereof no later than three business days after receipt of written notice of the interference from
Landlord. In the event that Tenant's cessation of action is material to Tenant's use of the Leased
Premises and such cessation fiustrates Tenant's use of the Leased Premises, within Tenant's sole
discretion, Tenant shall have the immediate right to terminate this Lease.
(b) With Higher Priority Users. If Tenant's Antenna Facilities cause impermissible
interference with higher priority users as set forth under Subparagraph 5(a) above or with pre-
existing tenants, Tenant shall take all measures necessary to correct and eliminate the Interference.
If the interference cannot be eliminated within 48 hours after receiving Landlord's written notice of
the interference, Tenant shall immediately cease operating its Antenna. Facilities and shall not
reactivate operation, except intermittent operation for the purpose of testing, until the interference
been has been eliminated. If the interference cannot be eliminated within 30 days after Tenant
received Landlord's written notice, Landlord may at its option terminate this Lease immediately.
(c) Interference Study -New Occupants. Upon written notice by Landlord that it has a
bona fide request from any other parry to lease an area including or in close proximity to the Leased
Premises ("Leased Premises Area"), Tenant agrees to provide Landlord, within sixty (60) days, the
radio frequencies currently in operation or to be operated in the future of each transmitter and
receiver installed and operational on the Lease Premises at the time of such request. Landlord may
then have an independent, registered professional engineer of Landlord's choosing perform the
necessary interference studies to determine if the new applicant's frequencles will cause harmful
radio interference to Tenant. Landlord shall require the new applicant to pay for such interference
studies, unless the Landlord or other higher priority user requests the use. In that event, the Tenant
and all other tenants occupying the Leased Premises Area shall pay for the necessary interference
studies, pro rata.
(d) Interference Study -New Occupants. Landlord agrees that it will not grant a future
lease in the Leased Premises Area to any party who is of equal or lower priority to Tenant, if such
party's use is reasonably anticipated to interfere with Tenant's operation of its Antenna Facilities.
Landlord agrees that it will require any subsequent occupants of the Leased Premises Area of equal
or lower priority to Tenant to provide Tenant these same assurances against interference. Landlord
shall have the obligation to eliminate any interference with the operations of Tenant caused by such
subsequent occupants. If such interference is not eliminated, Tenant shall have the right to
terminate this Lease or seek injunctive relief against the interfering occupant, at Tenant's expense.
15. Successors and Assigns. This Agreement shall run with the Property and shall be binding
on and inure to the benefit of the parties, their respective successors, personal representatives and
assigns. Tenant will not assign or transfer this Agreement or sublet all or any portion of the Leased
Premises without the prior written consent of Landlord which consent will not be unreasonably
withheld or delayed provided, however, that Tenant may assignor sublet without Landlord's
consent to any parry controlling, controlled by or under common control with Tenant or to any party
which acquires substantially all assets of Tenant. Except as provided above, Lessee shall make no
other assignment or transfer of this Agreement without obtaining the written consent of Lessor,
which consent shall not be unreasonably withheld.
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• 16. Condemnation. In the event the whole ofthe Leased Premises is taken by eminent domain,
this Lease shall terminate as of the date title to the Leased Premises vests in the condemning
authority. In event a portion of the Leased Premises is taken by eminent domain, either party shall
have the right to terminate this Lease as of said date of title transfer, by giving thirty (30) days'
written notice to the other party. In the event of any taking under the power of eminent domain,
Tenant shall not be entitled to any portion of the reward paid for the taking and the Landlord shall
receive full amount of such award. Tenant hereby expressly waives any right or claim to any
portion thereof Although all damages, whether awarded as compensation for diminution is value of
the leasehold or to the fee of the Leased Premises, shall belong to Landlord, Tenant shall have the
right to claim and recover from the condemning authority, but not from Landlord, such
compensation as may be separately awarded or recoverable by Tenant on account of any and all
damage to Tenant's business and any costs or expenses incurred by Tenant in moving/removing its
equipment, personal property, Antenna. Facilities, and leasehold improvements.
17. Enforcement and Attorneys' Fees. In the event that either party to this Lease shall bring a
claim in arbitration to enforce any rights hereunder, the prevailing parry shall be entitled to recover
costs and reasonable attorneys' fees incurred as a result of such claim.
18. Notices. All notices hereunder must be in writing and shall be deemed validly given if sent
by certified mail, return receipt requested, addressed as follows (or any other address that the party
to be notified may have designated to the sender by like notice):
. If to Landlord, to: City of Richfield
6700 Portland Avenue South
Richfield, MN 55423
If to Tenant, to: Sprint Spectrum LP
9801 West Higgins Suite 220
Rosemount, IL 60018
ATTN: Site Development Director
with a copy to: Sprint
4900 Main, 12th Floor
Kansas City MO 64112
ATTN: VP Assist General Counsel Business Law Group
19. Authori . Each of the individuals executing this Lease on behalf of the Tenant or the
Landlord represents to the other party that such individual is authorized to do so by requisite action
of the party to this Lease.
20. Binding Effect. This Lease shall run with the Leased Premises. This Lease shall extend to
and bind the heirs, personal representatives, successors and assigns of the parties hereto.
21. Complete Lease: Amendments. This Lease constitutes the entire agreement and
understanding of the parties and supersedes all offers, negotiations, and other agreement of any
kind. There are no representations or understandings of any kind not set forth herein. Any
modification of or amendment to this Lease must be in writing and executed by both parties.
iuv-i9as~2vi 10
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• 22. Governing Law. This Lease shall be construed in accordance with the laws ofthe State of
Minnesota.
23. Severabilit_y. If any term of this Lease is found to be void or invalid, such invalidity shall
not affect the remaining terms of this Lease, which shall continue in full force and effect.
24. Quiet Possession. Tenant is entitled to quiet possession of the Leased Premises throughout
the Term and any Renewal Term so long as Tenant is not in default hereunder beyond any
applicable cure period.
25. Memorandum of Lease. If requested by Tenant, Landlord will promptly execute and
deliver to Tenant a recordable Memorandum of this Agreement
26. Negotiation Costs. Upon execution hereof Tenant shall reimburse Landlord's costs and
expenses incurred in processing this Lease request in an amount not to exceed $300.
•
~i
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• IN WITNESS WHEREOF, the parties hereto have set their hands and affixed their
respective seals the day and year first above written.
•
•
LANDLORD
CITY OF RICHFIELD
By:
Its Mayor
By:
Its City Manager
TENANT:
SPRINT
By:
Its
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• STATE OF NIINNESOTA } ss.:
COUNTY OF HENNEPIN
The foregoing instrument was acknowledged before me this day of
20 by and ,
the Mayor and City Manager respectively of the City of Richfield, on behalf of said corporation.
Notary Public
•
STATE OF
ss..
COUNTY OF
day of
the
The foregoing instrument was acknowledged before me this
20 by
of Sprint, a
behalf of said corporation.
Notary Public
•
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13
corporation, on