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07-26-99 agendaCITY OF RICHFIELD, MINNESOTA • MONDAY, JULY 26, 1999 REGULAR CITY COUNCIL MEETING 7:00 P.M. COUNCIL CHAMBERS RICHFIELD CITY HALL AGENDA INTRODUCTORY PROCEEDINGS CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF MINUTES OF (1) REGULAR CITY COUNCIL STUDY SESSION OF • JULY 6, 1999 AND (2) REGULAR CITY COUNCIL MEETING OF JULY 12, 1999. PRESENTATIONS UPDATE OF LOBBYIST ACTIVITIES AND LEGISLATOR COMMENTS ON SESSION COUNCIL LETTER NO. 159 2. RECOGNITION OF CITY OF RICHFIELD AND COMMUNITY CENTER MANAGER LIL HIPP FROM ADAPTIVE RECREATION-LEARNING EXCHANGE (AR*LE) FOR LEADERSHIP IN QUALITY PROGRAMS FOR RICHFIELD RESIDENTS WITH DISABILITIES 3. RECOGNITION OF COMMUNITY CENTER MANAGER LIL HIPP FROM TRANSPORTATION RESOURCES TO AID INDEPENDENT LIVING (TRAIL) FOR RICHFIELD'S ADAPTIVE RECREATION PROGRAM ROLE IN ITS CREATION INDIVIDUALS WHO WISH TO ADDRESS THE COUNCIL ARE REQUESTED TO PRINT THEIR NAME AND ADDRESS ON THE SPEAKER'S REGISTER FOR THE RECORD. • 4. OPPORTUNITY FOR CITIZENS TO ADDRESS THE COUNCIL ON ITEMS NOT ON THE AGENDA • AGENDA APPROVAL 5. COUNCIL APPROVAL OF AGENDA CONSENT CALENDAR 6. CONSENT CALENDAR CONTAINS SEVERAL SEPARATE ITEMS WHICH ARE ACTED UPON BY THE CITY COUNCIL IN ONE MOTION. ONCE THE CONSENT CALENDAR HAS BEEN APPROVED, THE INDIVIDUAL ITEMS AND RECOMMENDED ACTIONS HAVE ALSO BEEN APPROVED. NO'FURTHER COUNCIL ACTION IS NECESSARY. HOWEVER, ANY COUNCIL MEMBER MAY REQUEST THAT AN ITEM BE REMOVED FROM THE CONSENT CALENDAR AND PLACED ON THE REGULAR AGENDA FOR-COUNCIL DISCUSSION AND ACTION. ALL ITEMS LISTED ON THE CONSENT CALENDAR ARE RECOMMENDED FOR APPROVAL. A. CONSIDERATION OF APPROVAL OF LEASE AGREEMENT WITH TOM PRICE FOR TEN FEET OF PROPERTY ON NORTH EDGE OF LINCOLN FIELDS C.L. 160 B. CONSIDERATION OF APPROVAL OF ITINERANT FOOD LICENSE WITH FEE WAIVER FOR RICHFIELD OPTIMIST CLUB ANNUAL HOLE-IN-ONE CONTEST AT LYNDALE FIELD, 70TH STREET AND LYNDALE AVENUE, ON • JULY 29-31, 1999 C.L. 161 C. CONSIDERATION OF APPROVAL OF ITINERANT PLACE OF AMUSEMENT, ITINERANT FOOD, AND PUBLIC DANCE LICENSES WITH FEE WAIVER FOR OAK GROVE LUTHERAN CHURCH BLOCK PARTY, 7045 LYNDALE AVENUE, ON JULY 31, 1999 C.L. 162 PUBLIC HEARING 7. PUBLIC HEARING AND SECOND READING OF AMENDMENT TO CITY ADMINISTRATIVE CODE SECTION 1, SUBSECTION 310.03 DESCRIBING PROJECT EMPLOYEE COUNCIL LETTER NO. 163 RESOLUTION 8. CONSIDERATION OF ADMINISTRATIVE LAW JUDGE'S FINDINGS OF FACTS, CONCLUSIONS AND RECOMMENDATIONS IN MATTER OF SERVICE OF ALCOHOL TO UNDERAGE PERSON AT VINA RESTAURANT, 6401 NICOLLET AVENUE, AND RESOLUTION SUSPENDING ON-SALE 3.2 PERCENT MALT LIQUOR LICENSE AND IMPOSING CIVIL PENALTY • COUNCIL LETTER NO. 164 ADMINISTRATIVE REPORTS AND OTHER BUSINESS 9. CONSIDERATION OF ACCEPTANCE OF BID MINUTES/TABULATION AND REJECTION OF THREE BIDS RECEIVED FOR ACADEMY OF HOLY ANGELS RECREATION SITE IMPROVEMENTS AND AUTHORIZATION TO READVERTISE FOR BIDS COUNCIL LETTER NO. 165 10. CONSIDERATION OF RESOLUTION AFFIRMING MUNICIPAL TORT LIABILITY LIMITS ESTABLISHED BY MINNESOTA STATUTES 466.04 COUNCIL LETTER NO. 165A AIRPORT BUSINESS 11. AIRPORT STATUS REPORT CORRESPONDENCE 12. LEGISLATIVE REPORT COUNCIL CHOICE 13. COUNCIL DISCUSSION ITEMS 14. CLAIMS AND PAYROLLS 15. 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. /D CITY OF RICHFIELD, MINNESOTA • Council Letter No. 165A Agenda July 26, 1999 Issue Statement: Resolution affirming municipal tort liability limits established by Minnesota Statutes 466.04 Background: The State Statute that governs tort liability limits for a municipality was amended in 1998. One major change contained in that amendment was to raise the monetary limits of exposure for any municipality involved in a liability claim against it. The-limits of $200,000 for a single claimant and $600,000 for any single occurrence, were raised to $300,000 per single claimant and $750,000 per occurrence. Thus, in 1999 the City was subject to the new limits. With the previous limits, the League of Minnesota Cities Insurance Trust through which the City purchases insurance automatically waived single claimant liability limit in providing the insurance. Thus, any single claimant could recover up to $600,000 against the City for a liability claim. With the change of liability limits, this option was no longer automatically invoked by the League of Minnesota Cities Insurance Trust. Instead, the waiver of liability limits must be acted upon by each individual city and/or HRA by City Council action. The Richfield City Council must annually decide whether the City would voluntarily waive the statutory limits for both the single claimant and each occurrence. If the single • limit is waived it would allow an individual claimant to recover up to the $750,000 single occurrence limit. If the Council waived its per occurrence liability limits and purchased excess liability insurance, a single claimant could potentially recover up to the amount of the limit of the additional coverage purchased. The total which all claimants would be able to recover for a single occurrence to which the statutory limits apply would also be limited to the amount of coverage purchased regardless of the number of claimants. Since the new law was implemented, the majority of cities in Minnesota, including Richfield for the period July 1, 1998 to June 30, 1999, have elected not to waive the monetary limits on municipal tort liability that was established by Minnesota Statutes 466.04. In other words, most cities are standing by the statute which would allow an individual claimant to recover no more than $300,000 on any individual claim and that all claimants recover no more than $750,000 per single occurrence. The election to waive limits of liability is an action that may be reviewed by the City Council on an annual basis. City staff, m examining the actions of other municipal entities across the state and its own risk management practices, is recommending that the Council not waive the monetary limits on municipal tort liability for its insurance renewal of July 1, 1999. Recommended Motion: Adopt a resolution authorizing the City Council not to waive the monetary limits on municipal tort liability established by Minnesota Statutes 466.04. Basis of Recommendation: 1. The new limits have been increased to provide greater coverage for claimants . against municipal entities. The increase taking effect in 1998 is the first step in a tO ~I series of increases that will eventually bring the limits up to $1,000,000 per occurrence in 2000. 2. The City has typically not purchased excess liability coverage because of the cost of such coverage. 3. The majority of municipalities in Minnesota are not waiving the monetary limits on municipality tort liability as was established by Statutes 466.04. 4. The tort liability limits established by Minnesota Statutes have protected cities historically and no court has awarded an amount to a claimant in excess of the statutory limits for municipalities in Minnesota. 5. There is a slight premium saving for entities that affirm the monetary limits on tort municipal liability in their package coverage with League of. Minnesota Cities Insurance Trust. The savings for the City would be less than $1000 per year. 6. The Council could waive its statutory limits in future years if the Council should decide to do so. Alternative Recommendation: 1. If the Council believes that any single claimant should receive more than the $300,000 limit, the Council could elect to waive the monetary limits on tort liabilities established by Minnesota Statutes. 2. If the Council believes that the $750,000 limit is not adequate, the City could purchase excess liability coverage in the amount of $1,000,000 in excess of the limit at a cost of approximately $2,200 and subsequently waive the limits of liability so individuals suing the City could collect up to the amount of coverage purchased by the City. Discussion/Decision Mode: The City's insurance policy with the League of Minnesota Cities Insurance Trust renewed on July 1, 1999. Thus, it is important that the Council take action as soon as possible to either affirm or waive the monetary limits on tort liabilities established by Minnesota Statutes 466.04. Resp Ily su m" ed Steven L. Devich Acting City Manager SLD:cak ~o-a RESOLUTION NO. RESOLUTION AFFIRMING MUNICIPAL TORT LIABILITY LIMITS ESTABLISHED BY MINNESOTA STATUTES 466.04 WHEREAS, Minnesota Statute 466.04 provides for Municipal tort liability limits for Minnesota cities, and WHEREAS, the League of Minnesota Cities Insurance Trust has asked that each city review the tort liability limits and determine if the respective city-would choose to waive it's limits, and WHEREAS, such decision to affirm or waive the tort liability limits must be filed with the League of Minnesota Cities Insurance Trust at the insurance renewal date. NOW, THEREFORE, BE IT RESOLVED that the City Manager is directed to report to the League of Minnesota Cities Insurance Trust that the Richfield City Council does not waive the monetary limits on the municipal tort liability established by Minnesota statutes 466.04. Adopted by the City Council of the City of Richfield, Minnesota this 26th day of July 1999. • Martin J. Kirsch, Mayor ATTEST: Thomas P. Ferber, City Clerk • • CITY OF RICHFIELD, MINNESOTA Council Letter No. 165 Agenda July 26, 1999 Issue Statement: Reject bids for the Academy of Holy Angels recreational site improvements. Background: Two ballfields and a soccer field at the Academy of Holy Angels (AHA) have been identified for redevelopment as part of the Ballfield Replacement Project, which replaces fields that will be displaced by the construction of the North-South Runway. Bids for the AHA site were opened on July 6 at City Hall. Base bids, plus ten alternates were listed in the bids (see tabs/minutes). All three base bids far exceeded the project budget of $150,000. The following three base bids were received: • Ingram Excavating $260,042.75 • Hoffman/McNamara $241,784.70 • L.S. Black $423,087.68 Recommended Motion: i It is recommended that the City Council take the following actions: 1. Accept the bid minutes/tabulation and reject the three bids received for the Academy of Holy Angels recreational site improvements. 2. Authorize readvertisement for bids for the project. Basis of Recommendation: 1. All bids exceed the estimated project budget and a new advertisement for bids will need to be published to proceed with the project. 2. The proposals have been reviewed and cannot be altered to comply with the project budget without a drastic re-working of the project plans. In re-advertising for bids, the plans and specs will be carefully reviewed so as not to solicit bids that will exceed the budgeted project cost. Alternative Recommendation: 1. Accept the lowest bid in the amount of $241,784.70, and seek other sources of funding for the amount that exceeds the budget. 2. Reject the bids, but do not authorize staff to readvertise for bids. • q-1 Discussion/Decision Mode: Staff wishes to re-advertise and begin the project as soon as possible. Therefore, the Council is asked to take action at the July 26 meeting. SLD:ds Attachment • • Acting City Manager ~-a CITY OF RICHFIELD, MINNESOTA • Bid Opening July 6, 1999 2:00 p.m. 1999 Ballfield Replacement Project Academy of Holy Angels Recreational Site Improvements City Project No. 421-40-754 Pursuant to requirements of Resolution No. 1015, a meeting of the. Administrative :Staff was .called by Thomas P. Ferber, City Clerk, who announced that the purpose of the meeting was to receive, open and read aloud bids for 1999 Academy of Holy Angels recreational site improvements for the Ballfield Replacement Project, as advertised in the official newspaper on June 9, 1999. Present: Thomas Ferber, City Clerk Cheryl Krumholz, City Manager Representative Jim Topitzhofer, Recreation Services Director • The following bids were submitted and read aloud: Ingram Excavating Inc. e ~ ~ 5% Bid Bond $260,042.75 1 $800.00 2 $600.00 3 $800.00 4 $5,900.00 5 $800.00 6 $600.00 7 $800.00 8 $2,950.00 9 $2,775.00 10 ($8,370.00) Hoffinan & McNamara Co. 5% Bid Bond $241,784.70 1 $1,000.00 2 $700.00 3 $970.00 4 $5,330.00 5 $1,000.00 6 $700.00 7 $970.00 8 $2,665.00 9 $30,600.00 10 ($5,100.00) (continued on back) a-3 L.S. Black Constructors, Inc. 5% Bid Bond $423,087.68 1 $885.00 2 $575.00 3 $2,070.00 4 $8,510.00 5 $885.50 6 $575.00 7 $2,070.00 8 $4,600.00 9 $I8,722.00 10 ($17,993.48) . The City Clerk announced that the bids would be tabulated and considered at the July 26, 1999 City Council meeting. Thomas P. Ferber City Clerk • 8 CITY OF RICHFIELD, MINNESOTA Council Letter No. 164 Agenda July 26, 1999 Issue Statement: Consideration of the Administrative Law Judge's Findings of Fact, Conclusions and Recommendations in the matter of the service of alcohol to an underage person at Vina Restaurant, 6401 Nicollet Avenue. Background: On April 13, 1999, Richfield Public Safety staff conducted alcohol compliance checks at --City alcohol establishments. They were assisted by two youths between the ages of 18- 20 years of age. The Police Division made arrangements for the minors to enter the establishments with an undercover police officer. The underage youths were successful in making a purchase of alcohol at Vina's on that date. On April 26, 1999, Vina's appeared before the City Council and requested a contested case hearing. They did not admit that a violation had occurred. A hearing was scheduled for Vina's before Bruce H. Johnson, Administrative Law Judge, on June 24, 1999 at 9:30 a.m. The hearing took place on that date and all participants were given an opportunity to provide their testimony. On June 30, 1999, the Findings of Fact, Conclusions and Recommendations in the matter of the service of alcohol to an underage person at Vina's was received by staff from Bruce H. Johnson, Administrative Law Judge. Mr. Johnson's report stated that his report is a recommendation and not a final decision. The City Council of the City of Richfield will make the final decision after reviewing the hearing record. He further states that the City Council may adopt, reject or modify his Findings of Fact, Conclusions and Recommendations. Mr. Johnson's conclusions are as follows: "Restaurant waiters customarily have the authority to sell and serve customers alcoholic beverages. Even though Mr. Danh was a waiter trainee in a probationary status, who Ms. Nguyen had not authorized to sell or serve alcoholic beverages except under direct supervision, customers could not reasonably be expected to know that he did not have that authority. The Vina Restaurant is, therefore, legally responsible for what Mr. Danh did on April 13, 1999." Mr. Johnson's report further states: "the Administrative Law Judge respectfully recommends that the City Council take appropriate disciplinary action against the Vina Restaurant's 3.2 intoxicating malt liquor license." Recommended Motion: It is recommended that the Council take the following actions: 1. Accept the Administrative Law Judge's findings of Fact, Conclusion and Recommendations in the matter of the service of alcohol to an underage person at Vina Restaurant, 6401 Nicollet Avenue. 2. Adopt a resolution suspending Vina's 3.2 intoxicating malt liquor license for two consecutive days, levying a fine against them in the amount of $500 and instructing Vina representatives to attend a mandatory meeting with the Public Safety Director to present their individual establishment plan to ensure eliminating any future actions of this kind and to attend an alcohol sales and awareness program given by the Richfield Crime Prevention staff. _) Basis of Recommendation: 1. It is a violation of a Minnesota State Statute and City ordinance to sell alcohol to underage youth. 2. Civil enforcement penalties taken in 1990 by the City Council against several establishments were severe. This was done to send a message to the establishments and the community that the Council-will not tolerate this type of violation continuing in the community and that our youth and their well being are highly valued. 3. Citizen representatives of the Richfield Advisory Board of Health support severe actions against establishments in an effort to protect the youth of the community and to send a message that youth and their well being are a high priority in this city. 4. The Administrative Law Judge's Findings of Fact, Conclusions and Recommendations states that Vina Restaurant is legally responsible for what their employee did on April 13, 1999 and recommends that the City Council take appropriate disciplinary action against their 3.2 intoxicating malt liquor license. Alternative Recommendation: 1. The Council may consider taking more or less severe, action against the establishments that sold alcohol to underage youth. Discussion/Decision Mode: The Administrative Law Judge has completed the review and issued the findings of Facts, Conclusions and Recommendations in the matter of the service of alcohol to an underage person at Vina Restaurant, 6401 Nicollet Avenue. It is, therefore, now appropriate for the City Council to take action on this matter. City Manager SLD:cak • ~-~ CITY OF RICHFIELD • RESOLUTION NO. RESOLUTION SUSPENDING THE ON-SALE 3.2 PERCENT MALT LIQUOR LICENSE FOR VINA, INC., D/B/A VINA RESTAURANT AND IMPOSING A CIVIL PENALTY WHEREAS, Vina, Inc., d/b/a Vina Restaurant ("Licensee") holds an on-sale 3.2 percent malt liquor license from the City of Richfield; and WHEREAS, the City of Richfield Public Safety-Department reported to the City Council on May 5, 1999 that the Licensee had failed a compliance check conducted at the licensed premises, 6401 Nicollet Avenue, on April 13, 1999; and WHEREAS, the Licensee appeared before the Richfield City Council on April 26, 1999 and requested that the alleged liquor violation be referred to an independent hearing examiner for a contested case hearing; and WHEREAS, on June 24, 1999, Administrative Law Judge Bruce H. Johnson (the "ALJ") conducted a hearing on the matter, at which both the City and the Licensee presented testimony and evidence; and WHEREAS, on June 28, 1999, the ALJ issued his Findings of Fact, Conclusions and Recommendation; and • WHEREAS, the ALJ determined that on April 13, 1999, the Licensee violated state law and city ordinances by selling alcohol to a minor; and WHEREAS, the ALJ recommended that the Richfield City Council take appropriate .disciplinary action against the Licensee's license. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield as follows: 1. The City Council adopts the Findings of Fact, Conclusions and Recommendation issued by the ALJ. 2. The Licensee's on-sale 3.2 malt liquor license is hereby suspended for a period of two consecutive days, commencing on a date to be determined by the Public Safety Director, but commencing no later than August 26, 1999. 3. A civil penalty of $500 is hereby imposed. On or before August 26, 1999, the Licensee shall deliver a check or money order payable to the City of Richfield in the amount of $500. 4. A representative of the Licensee must meet with the Public Safety Director on or before August 26, 1999 and present to the Public Safety Director the Licensee's plans to ensure that future violations of this nature will not occur. Passed by the City Council. of the City of Richfield this 26th day of July 1999. Martin J. Kirsch, Mayor ATTEST: Thomas P. Ferber, City Clerk June 28, 1999 ,~.,~ ~~~ol ~ of STATE OF MINNESOTA OFFICE OF ADMINISTRATIVE HEARINGS ~~~ 100 Washington Square, Suite 1700 100 Washington Avenue South Minneapolis, Minnesota 55401-2138 City of Richfield Attn: Betsy Christensen 6700 Portland Avenue So. Bloomington, Minnesota 55438 RE: In the Matter of the Suspension of the On-Sale 3.2 percent Malt Liquor License of Vina, Inc., d/b/a Vina Restaurant; OAH Docket No. 4-2101-12223-2. Dear Ms. Christensen: Enclosed and served upon you is the Findings of Fact, Conclusions and • Recommendations of the Administrative Law Judge in the above-entitled matter. Also enclosed is the official record and we are now closing our file. Sincerely, ~- , r BRUCE H. JOHNSON . Administrative Law Judge Telephone: 612/341-7607 BHJ:Ic Enclosure cc: Joe Y. Yang Corrine H. Thomson Thuy Nguyen • Providing Impartial Hearings for Government and Citizens An Equal Opportunity Employer Administrative Law Section & Administrative Services (612) 341-7600 ~ TDD No. (612) 341-7346 • Fax No. (612) 349-2665 s-~+ STATE OF MINNESOTA) ss COUNTY OF HENNEPIN) AFFIDAVIT OF SERVICE BY U.S. MAIL Louise C. Cooper, being first. duly sworn, hereby. deposes and says that on the 28th day of June, 1999, at the City of Minneapolis, county and state aforementioned, she served the attached FINDINGS_OF FACT, CONCLUSIONS AND RECOMMENDATIONS: OAH Docket No. 4-2101-12223-2 by .depositing in the United States mail at said City of Minneapolis, a true and correct copy thereof, properly enveloped, with first class postage prepaid and addressed to the individuals named herein. City of Richfield Attn: Betsy Christensen 6700 Portland Avenue So. Bloomington, MN 55438 Joe Y. Yang Attorney at Law Kennedy & Graven, Chtd. 470 Pillsbury Center 200 So. Sixth St. Minneapolis, MN 55402 Corrine H. Thomson Attorney at Law Kennedy & Graven, Chtd. 470 Pillsbury Center 200 So. Sixth St. Minneapolis, MN 55402 Thuy Nguyen C/o Vina Restaurant 6401 Nicollet Ave. So. Richfield, MN 55423 e- . ~o~o~at... Louise C. Cooper • Subscribed and sworn to before me this 28th 1999 otary Public day of June. SUSAN SCHLEISMAN NOTARY PUeIIC -MINNESOTA MY Comm. ~P• ~- 31, 2000 8-5 • OAH Docket No. 4-2101-12223-2 STATE OF MINNESOTA OFFICE OF ADMINISTRATIVE HEARINGS FOR THE CITY OF RICHFIELD In the Matter of the Suspension FINDINGS OF FACT, Of the On-Sale 3.2 percent Malt CONCLUSIONS AND Liquor License of Vina, Inc., dba RECOMMENDATIONS Vina Restaurant Administrative Law Judge Bruce H. Johnson conducted a hearing in this contested case proceeding beginning at 9:30.m. on Thursday, June 24, 1999, at the City Council Chamber, Richfield City Hall, 6700 Portland Avenue South, Richfield, Minnesota. Joe Y. Yang, of the firm of Kennedy & Graven, Chartered, Suite 470, 200 South Sixth Street, Minneapolis, Minnesota 55402, represented the City of Richfield (the City) at the hearing. The Licensee, Vina Restaurant, was represented by its manager, Thuy Nguyen. The record closed on June 24, 1999, when the hearing ended. This Report is a recommendation, not a final decision. The City Council of the City of Richfield will make the final decision after reviewing the hearing record. The City Council may adopt, reject or modify these Findings of Fact, Conclusions, and Recommendations. Under Minnesota Law,' the City Council may not make its final decision until after the parties have had access to this Report for at least ten days. During that time, the City Council must give each party adversely affected by this Report an opportunity to file objections to the report and to present argument. Parties should contact the office of Steve Devich, Acting City Manager, City of Richfield, 6700 Portland Avenue South, Richfield, Minnesota 55423, to find out how to fife objections or present argument. 'Minnesota Statutes, section 14.61 (1998). (Unless otherwise specified, all references to Minnesota Statutes are to the 1998 edition.) ~_v . STATEMENT OF THE ISSUES Whether the Vina Restaurant sold intoxicating liquor to a minor in violation of the laws of the State of Minnesota2 and the Richfield City Code,3 and if so, whether Vina's liquor license should be suspended and a civil penalty assessed. Based upon the record in this matter, the Administrative Law Judge makes the following: FINDINGS OF FACT 1. In cooperation with the Boy Scouts of America, the City sponsors the Richfield Police Explorer Program for young people, ..ages 14 to 21. The __ purpose of the program is to provide young people who may be interested in a career in law enforcement with opportunities to learn about the duties and responsibilities of police work.4 2. The City also has a continuing alcohol compliance program that involves conducting annual undercover compliance checks on all businesses to which it has issued liquor licenses.5 That program frequently employs underage explorers from the Police Explorer Program in an undercover capacity to help determine whether or not businesses holding City liquor licenses might be willing to sell alcoholic beverages to underage customers without requiring proper identification. When explorers participate in undercover compliance checks, they are accompanied by sworn police officers over the age of 21. s 3. Vina, Inc., (Vina) is a Minnesota corporation that has owned and operated the Vina Restaurant at 6401 Nicollet Avenue South, Richfield, Minnesota, for the last thirteen years. Vina, Inc., holds an on-sale liquor license from the City of Richfield to serve 3.2 percent malt liquor at that restaurant. 4. In the past, Vina has operated other restaurants in the Twin Cities metropolitan area and has held on-sale liquor licenses from other cities to serve alcoholic beverages at those locations. Vina has never before been cited for selling intoxicating liquor to persons under 21 years old at any of its restaurant locations.' 5. From Monday through Saturday, the Vina Restaurant is scheduled to be open for business to serve lunch from 11:00 a.m. to 2:00 p.m., and from z Minnesota Statutes, section 340A.503, subdivision 2. s Richfield City Code, section1210.15. a Testimony of Officer Robert Schletty. s Testimony of Officer Schletty; Exhibit 1. s Testimony of Officer Schletty and Renee Jewell. Testimony of Thuy Nguyen. -2- g-'7 • Monday through Thursday, it is scheduled to be open to serve dinner from 5:00 p. to 8:OO~p.m.$ 6. The Vina Restaurant has standing policies for training its employees. When new waiters and waitresses are first hired, they are on a probationary training .status. -While in training, they are instructed not to take customer orders except when accompanied by the restaurant manager or one of the restaurant's experienced waiters and waitresses. When customers order alcoholic beverages, trainees are instructed to ask customers for identification to verify their ages if there is any possibility that they may be under the age of 2.1.9 7. On the afternoon of Tuesday, April 13, 1999, at approximately 4:50 p.m., the Vina Restaurant had already opened its doors to customers, even though it normally did not begin serving them for dinner until 5:00 p.m. Ms. Nguyen, the restaurant's manager was then on duty with a new trainee, Mr. Danh. Sometime shortly before 4:40 p.m., a male and a female acquaintance of Mr. Danh had entered the restaurant, had been seated, and were being served dinner.10 8. Also, on the afternoon of April 13, 1999, Richfield Police Officer Robert Schletty and Renee Jewell, an explorer in the Richfield Police Explorer program, were conducting compliance checks as part of the City's alcohol compliance program. Ms. Jewell was 18 years old at the time. Both were in plain clothes." 9. At about 4:50 p.m. on April 13, 1999, Officer Schletty and Ms. Jewell entered the Vin Restaurant and asked to be seated for service. They were met at the door by Ms. Nguyen and Mr. Danh.12 Ms. Nguyen explained to them that the restaurant would not begin serving dinner until 5:00 p.m., but she invited them in to be seated until dinner was ready to be served. Ms. Nguyen then went into the restaurant's kitchen to attend to duties there.13 10. While Ms. Nguyen was in the kitchen, Mr. Danh went over to the table where Officer Schletty and Ms. Jewell were seated and asked them whether they wished to order anything.14 In so doing, Mr. Danh violated Ms. Ngyuen's instructions that he not solicit customer orders without her or an experienced member of the wait staff being present.15 In response to Mr. Danh's solicitation, Ms. Jewell ordered a bottle of Heineken's beer. Mr. Danh did not e Exhibits A and B. s Testimony of Thuy Nguyen. 10 Testimony of Officer Schletty, Renee Jewell, and Thuy Nguyen. "Testimony of Officer Schletty and Renee Jewell. 12 Testimony of Officer Schletty, Renee Jewell, and Thuy Nguyen. 13 Testimony of Thuy Nguyen. 14 Testimony of Officer Schletty and Renee Jewell. 15 Testimony of Thuy Nguyen. -3- ~~ then or at any other time ask her for identification to verify that she was over the. age of 21.16 11. Mr. Danh served Ms. Jewell a bottle of Heineken's beer. Ms. Jewell then gave an excuse for having to leave the restaurant prematurely. She paid for the bottle of beer with cash and then left the premises." No one employed by the Vina Restaurant asked Ms. Jewell for identification to verify her age before she left the restaurant.'$ 12. After Ms. Jewell left the Vina Restaurant, Sergeant Lotzer of the Richfield Police Department entered the restaurant and joined Officer Schletty. Together they informed Ms. Nguyen that Officer Schletty and Ms. Jewell had been conducting an alcohol compliance check, that Ms. Jewell was under. the age of 21, and that Mr. Danh had allowed her to purchase an alcoholic beverage without checking her identification to verify that she was over 21 years o1d.19 13. On April 13, 1999, the Director of the City's Public Safety Department notified the Vina Restaurant by letter that, as required by state law, the City had been conducting alcohol compliance checks of the businesses holding liquor licenses issued by the City. The Director indicated that City had evidence that the Vina Restaurant, along with sixteen other businesses, had made a sale of an alcoholic beverage to an underage youth. The letter went on to advise the Vina Restaurant to have a representative present at an April 26, 1999, meeting of the City. Council at which it would be considering what enforcement actions to take against the restaurant.20 14. On April 23, 1999, the City provided the Vina Restaurant with another letter concerning the April 26th City Council Meeting. That second letter indicated, among other things, that. the Public Safety Department was recommending that the City Council impose a penalty of a two-day suspension of the restaurant's liquor license and a $500 penalty. It went on to advise the restaurant that it could choose to admit that a violation occurred and agree to the City Council's penalty or deny that a violation occurred and request a contested case hearing.Z1 15. Vina requested that the City Council provide it with a contested case hearing, and that request resulted in this proceeding. 16. Betsy Christensen, the City's Health Administrator and the individual responsible for business licensing matters within the City, recommends 16 Testimony of Officer Schletty and Renee Jewell. "Testimony of Renee Jewell. 18 Testimony of Renee Jewell. 19 Testimony of Officer Schletty. 20 Exhibit 1. Z' Exhibit 2. -4- 8-9 .that the City Council impose a penalty of a two-day suspension of the restaurant's liquor license and a $500 penalty. That is the penalty that she customarily recommends for licensees that serve an alcoholic beverage to a minor but that have no prior history of violations.22 17. These Findings are based on all of the evidence in the record. Citations to portions of the record are not intended to be exclusive references. 18. The Administrative Law Judge adopts as Findings any Conclusions that are. more appropriately described as Findings. Based upon these Findings of Fact, the Administrative Law Judge makes the following: CONCLUSIONS 1. Minnesota 1aw23 gives the Administrative Law Judge and the Richfield City Council authority to conduct this proceeding, to consider whether the Vina Restaurant has violated state laws and City ordinances pertaining to the sale and purchase of alcoholic beverages, and to make findings, conclusions, and orders on that subject. 2. The City gave the Vina Restaurant proper and timely notice of the hearing in this matter, and the City has complied with all of the law's substantive and procedural requirements. 3. Minnesota's laws pertaining to the sale of intoxicating liquors provide in part that "[i]t is unlawful for any person ... to sell, barter, furnish, or give alcoholic beverages to a person under 21 years of age ...»2a 4. Minnesota law also provides that: [e]very licensee is responsible for the: conduct in the licensed establishment and any sale of alcoholic beverage by any employee authorized to sell alcoholic beverages in the establishment is the act of the licensee for the purposes of all provisions of this chapter except sections 340A.701, 340A.702, and 340A.703. 5. Restaurant waiters customarily have the authority to sell and serve customers alcoholic beverages. Even though Mr. Danh was a waiter trainee in a probationary status whom Ms. Nguyen had not authorized to sell or serve 2z Testimony of Betsy Christensen. z3 Minnesota Statutes, section 14.50, and section 340A.503. 24 Minnesota Statutes, section 340A.503, subdivision 2 (7). -5- ~-~~ alcoholic beverages except under direct supervision, customers could not reasonably be expected to know that he did not have that authority. The Vin Restaurant is therefore legally responsible for what Mr. Danh did on April 13, 1999. 6. The City has the burden of proving that the Vin Restaurant violated the laws pertaining to the sale of intoxicating liquors, and it has met that burden in this contested case proceeding. 7. The Vin Restaurant violated ..state law and acity -ordinance by selling a of bottle Heineken's beer to Ms. Jewell on April 13, 1999. 8. Upon a finding that the holder of a liquor license has violated the law prohibiting sale of alcoholic beverages to persons under the age of 21, Minnesota law authorizes the City Council to: revoke the license or permit, suspend the license or permit for up to 60 days, impose a civil penalty of up to $2,000 for each violation, or impose any combination of these sanctions.2s 9. It has been the City's practice to impose a penalty of a two-day suspension of the liquor license and a $500 penalty for serving an alcoholic beverage to an underage person where there the licensee has no prior history of violations. 10. The Administrative Law Judge adopts as Conclusions any Findings which are more appropriately described as Conclusions. Based upon these Conclusions, the Administrative Law Judge makes the following: RECOMMENDATION The Administrative Law Judge respectfully recommends that the Richfield City Council take appropriate disciplinary action against the Vin Restaurant's liquor license. zs Minnesota Statutes, section 34A.415. -6- g-I 1 Dated this 28th day of June 1999. B C H. JOHNSON Administrative Law Jud e NOTICE Under Minnesota law,26 the City Council must serve its final decision upon each party and the Administrative Law Judge by first-class mail. is Minnesota Statutes, section 14.62, subdivision 1. -7- g-ia MEMORANDUM There is little dispute between the parties about what happened at the Vina Restaurant on the afternoon of April 13, 1999. Vina does not really dispute that a bottle of beer was sold to an underage person. But it believes that there are extenuating circumstances here that make it unfair to penalize the restaurant for the violation. Vina argues that the waiter who sold the bottle of beer to Ms. Jewell did not have the authority to do so for two reasons. First, Vina points out that when Officer Schletty .and Ms. Jewell arrived about ten minutes before the restaurant began serving dinner, and that the manager only invited them in to be seated until dinner was being served. In other words, Vina argues that it was inappropriate for either of them to have ordered anything before 5:00 p.m. when the restaurant customarily was open for business. But the evidence established that neither Officer Schletty nor Ms.. Jewell insisted on ordering anything before 5:00 p.m. It was the waiter who appeared to be on duty who asked them whether they wanted to order anything. Under Minnesota law, an employee is generally considered to have authority from the business owner to do the things that are customarily done by similar employees in that particular kind of business.27 In the restaurant business, waiters customarily have the authority to solicit orders for food and beverages on behalf of the restaurant owner. So even though the manager may have indicated that the restaurant would not be open to serve dinner until 5:00 p.m., Officer Schletty and Ms. Jewell had a right to rely on Mr. Danh's apparent authority to solicit a drink order before then. Mr. Danh's apparent authority to take the order is bolstered by the fact that there was already a couple in the restaurant who were being served dinner. Officer Schletty and Ms. Jewell had no way of knowing that the other couple were friends of the waiter and were being given special service by being served early. Vina also argues that since Mr. Danh was in a training status, he did not have the authority to take a drink order without the manager or an experienced member of the wait staff being present. But Officer Schletty and Ms. Jewell also had no way of knowing that limitation on Mr. Danh's authority. The Minnesota Supreme Court has ruled that the fact that an employer has placed secret limitations on an employee's authority will not absolve the employer of liability if others, such as the City, are unaware of those limitations.za Making an employer legally responsible for the actions of an employee who disregards his employer's instructions may seem harsh here. But the Administrative Law Judge notes from a reading of the law that both the Minnesota legislature and the City of Richfield's City Council consider underage 27 See, for example, Minnesota Valley Memorial Hospital. Inc. v. Kranz, 169 N.W.2d 400, 401 (Minn. 1969) za Lindstrom v. Minnesota Lictuid Fertilizer Co., 119 N.W.2d 855 (Minn. 1963) -8- g-i3 drinking of alcoholic beverages to be a very serious social problem. And both legislative bodies require the police to take strong measures to prevent underage drinking. It is for that reason that the Administrative Law Judge is recommending that the City Council impose the penalty on the Vina Restaurant that is customarily imposes on licensees for an offense of this kind. B. H. J. • -9- CITY OF RICHFIELD, MINNESOTA Council Letter No. 163 Agenda July 26, 1999 Issue Statement: Public hearing and second reading of amendment to the City Administrative Code Section 1, Subsection 310.03 describing a Project Employee. Background: City Code Section 310.03 Defining Terms, specifically describes. a Project Employee as "a full-time or part-time employee whose duties are directly related to the operation of a specific program or project and whose compensation is specifically allocated from designated non general revenue funds..." Non-general revenue funds which have been generally used are grants or allocations of money for specific programs paid for by other units of government. With the increase of City activities (new construction, remodeling, redevelopment) there has been a need within certain departments to hire Project Employees for a temporary time period. As an example, a Clerk and Inspector needed to be hired. to work as Project Employees on a temporary basis due to the increased demand of permits and inspections at this time. To better serve the public during this time of increased activity, the City of Richfield needs to be able to utilize general revenue funds in paying some of its Project Employees. The first reading of this ordinance change was held on June 28, 1999. Notice of the public hearing was published on July 14 in the Richfield Sun Current. Recommended Motion: Conduct the public hearing and approve second reading of the ordinance amendment to Subsection 310.02, Subdivision 27 regarding the definition of Project Employee. Basis of Recommendation: 1. Due to sporadic increase of activity within departments, the need to hire Project Employees on a temporary basis has increased. 2. Some of the Project Employees that need to be hired cannot be paid through non- general revenue funds (grants, special assessments). 3. The first reading of this ordinance change was held on June 28, 1999. Alternative Recommendation: 1. Do not amend the ordinance. 2. Defer discussion to a future date. Discussion/Decision Mode: The public hearing and second reading of an ordinance amending Subsection 310.03 describing a Project Employee is scheduled for the July 26, 1998 City Council meeting. R sp tfully sub tted, Y e i ing City Manager SLD:cak BILL NO. AN ORDINANCE RELATING TO THE CITY ADMINISTRATIVE CODE; DEFINING TERMS; AMENDING SUBSECTION 310.03 OF THE RICHFIELD CITY CODE THE CITY OF RICHFIELD DOES ORDAIN: ~-i Section 1. Subsection 310.03, Subdivision 27 of the Richfield City Code is amended to read as follows: Subd. 27. "Project employee" means afull-time or part-time employee whose duties are directly related to the operation of a specific program or project and whose compensation is specifically allocated forsuch program or project from designated ^^^_^~„°,-°~ rovon~ ~o funds-,-e<;~s, "~ ~+ ^„+,;,~,ae,~ +^, yrw;,±c ,,,- ^^o^;,~ ,^^o^~mo^+~. The term of initial appointment may be for a period of up to on year and may be extended annually thereafter. With respect to group insurance, holidays, vacation leave and personal leave/short-term disability benefits only, such employees shall be treated as regular employees working a similar number of hours. Sec. 2. This ordinance is effective in accordance with Section 3.09 of the Richfield City Charter. Adopted by the City of Richfield this 26th. day of July, 1999. • ATTEST: Thomas P. Ferber, City Clerk Martin J. Kirsch, Mayor • CITY OF RICHFIELD, MINNESOTA ~~ Council Letter No. 162 Agenda July 26, 1999 Issue Statement: Consideration of a request for an itinerant place of amusement, itinerant food, and public dance license for Oak Grove Lutheran Church, 7045 Lyndale Avenue, for a block party to be held July 31, 1999. Background: On June 24, Oak Grove Lutheran Church submitted a request for an itinerant place of amusement, itinerant food and public dance license for a July 31, 1999 summer block party. They are requesting that the fee be waived, as they are a religious organization. They will be serving food items, such as popcorn, hot dogs, hamburgers and ice cream, and have contacted the Bloomington Health Sanitarians for food serving requirements. Their hours of operation will be from 4 p.m.-10 p.m. Recommended Motion: Approve the itinerant place of amusement, itinerant food, public dance license and fee waive request for July 31, 1999 for Oak Grove Lutheran Church, 7405 Lyndale Avenue. Basis of Recommendation: • 1. The applicant has complied with the City code pertaining to this license. 2. Applicant has held a similar event in previous years. 3. The Public Safety Department has not found any basis for a denial. Alternative Recommendation: 1. The Council could decide to deny the request. This would mean that Oak Grove would be unable to hold the event. Discussion/Decision Mode: Request for the issuance and fee waiver of an itinerant place of amusement, itinerant food and public dance license for Oak Grove Lutheran Church, 7045 Lyndale Avenue, for a Summer Block Party to be held on July 31, 1999 is presented for Council consideration at this time. Re ctf Ily submitted, Y en . De h Acting City Manager • SLD:ds CITY OF RICHFIELD, MINNESOTA / Council Letter No. 161 (p Agenda July 26, 1999 • Issue Statement: Request by the Richfield Optimist Club for an itinerant food license for their annual Hole-in-One contest to be held at Lyndale Field, 70th Street and Lyndale Avenue, July 29, 30 and 31, 1999. Background: On July 20, 1999, the Richfield Optimist Club submitted a request for an itinerant food license for July 29, 30 and 31, 1999. They are requesting that the fee be waived. The event will take place from 3:30 p.m. until 8:30 p.m. on July 29 and 30, and from 8:30 a.m. until 4:30 p.m. on the July 31. The Optimists have received permission to use the-Lyndale field for this event. Hot dogs, brats, and canned soda will be served during the event. The food concession will be operated by members of the of Richfield Optimist Club and there will be no outside vendors. The Richfield Optimist Club has contacted food sanitarians from the City of Bloomington to ensure that proper food handling practices are followed. They will work with Bloomington sanitarians and follow their recommendations for safe and wholesome food handling. Recommended Motion: Staff recommends the approval of an itinerant food license and fee waiver for the Richfield Optimist Club for July 29, 30 and 31, 1999. Basis of Recommendation: 1. The applicant has complied with all of the provisions of the City application and meets the requirements for fee waived. Alternative Recommendation: 1. The Council could decide not to grant the license. This would result in the applicant not being able to conduct activities, especially those concerning food preparation, on July 29, 30 and 31, 1999. Discussion/Decision Mode: Request for the issuance and fee waiver of an itinerant food license for the Richfield Optimist Club for their Hole-in-One contest to be held at Lyndale field, 70th Street and Lyndale Avenue, July 29, 30 and 31, 1999, is presented for Council consideration at this time. R pec ully submi d, to e, . De ich Acting City Manager SLD:ds ~A CITY OF RICHFIELD, MINNESOTA Council Letter No. 160 Agenda July 26, 1999 Issue Statement: Approve a lease agreement for Tom Price for ten feet on the north edge of Lincoln Fields. Background: Tom Price has leased the northern ten feet of Lincoln Fields for his-trailer,court for many years. This lease indicates anothertwo-year term, however, it also indicates that the City may cancel the lease by written notice (90-day notice if the City determines a need to use or modify the land and 180-day notice for any reason). The amount of the lease was adjusted during the last term to reflect an increase in the rental value of the land. The amount of the two-year lease is $1,400. Recommended Motion: Approve the attached lease agreement for a period of two years in the amount of $1,400, payable in two $700 installments. Basis of Recommendation: 1. The City does not have immediate need for the land, although that may change with the next phase of the Ballfield Replacement Project (which includes site improvements at Lincoln Field). 2. The City has leased the land to Mr. Price for many years with no problems. Alternative Recommendation: 1. Reject the lease agreement and direct staff to alter or amend the agreement. 2. Do not renew the lease agreement. Discussion/Decision Mode: With the next lease term commencing on August 1, 1999, staff requests action on July 26, 1999. Re c ully submitt d, ,. i v . De c Acting City Manager SLD:ds Attachment ~fl~l INDEMNIFICATION AND HOLD HARMLESS AGREEMENT THIS INDEMNIFICATION AND HOLD HARMLESS AGREEMENT (the "Agreement") is made as of July 26, 1999 by and between the CITY OF RICHFIELD, a Minnesota municipal corporation (the "City"), and THOMAS PRICE, an individual residing at 7421 Lyndale Avenue South, Richfield, MN 55423 ("Price"). RECITALS A. Price is the owner of a tract of land which is legally described in the Property ID number 34 028 24 32 0015. ADN UNPLATTED 34 028 24. METES/BOUNDS DESCRIPTION: THE S 5 ACRES OF THEN 10 ACRES OF NW 1&4 OF SW 1&4 AND THEN 4 FT THAT PART OF THE NW 1&4 OF SW 1&4 LYING S OF THEN 10 ACRES THEREOF EX R R R&W AND THE ROAD ("Price Property"). B. The City is the owner of a parcel of land which is legally described in the Property ID number 34 028 24 32 0025. ADN UNPLATTED 34 028 24. METES/BOUNDS DESCRIPTION: W 468 68/100 FT OF E 493 68/100 FT OF THAT PART OF THE S 20 ACRES OF N 30 ACRES OF NW 1/4 OF SW 1/4 LYING S OF THE N 4 FT THEREOF ("City Property"). C. Price is desirous of obtaining permission from the City to utilize a portion of the City Property in conjunction with the mobile home park which Price operates on the Price Property. This portion consists of the northern ten feet of the City property from the east to west boundaries, approximately 4690 square feet. D. The City is willing to permit such use in return for Price's agreement to indemnify, protect, defend, and hold harmless the City and to fulfill the other obligations contained herein pursuant to this Agreement. AGREEMENT 1. Offer and Acceptance of Agreement. Subject to the terms and conditions of This Agreement, and in consideration of the covenants contained herein, the City and Price agree that Price may use the City Property for the period commencing on August 1, 1999, and terminating July 31, 2001 for a fee of $1,400.00 payable in two installments of $700. Payment one is due immediately and payment two is due August 1, 2000. 2. Maintenance and Repair. Price shall, at his own cost and expense maintain and repair City the Property and shall at all times keep it in compliance with regulations of the City. The City shall have no responsibility for the maintenance or repair of the City Property. Thomas Price Lease Agreement LA ~- 3. Indemnification and Insurance. (a) Price shall at all times defend, protect, indemnify, and hold harmless the City and its agents, officers, servants, and employees from any and all claims for damages and other remedy, including but not limited to costs and attorney fees, arising from or by reason of the maintenance, use, and repair of the City Property. Nothing in this Agreement shall be construed as a waiver by the City of any immunities, defenses, or other limitations on liability to which the City is entitled by law, including but not limited to the maximum monetary limits on liability established by Minnesota Statutes, Chapter 466. (b) Price, at his sole cost and expense, shall maintain in full force and effect during the term of this Agreement general liability insurance in the minimum amounts of $1,000,000 bodily injury, including death, per person; $1,000,000 bodily injury, including death, per occurrence; and $500,000 property damage per occurrence. A certificate of insurance evidencing compliance with this Agreement shall be provided to the -City by Price. The City shall be named as an additional insured on the insurance policy described herein, and such policy shall contain a stipulation that Price's insurer will provide thirty (30) days prior written notice of cancellation of such insurance to the City. The insurance shall be carried by solvent and responsible insurance companies licensed to do business in the State of Minnesota. 4. Miscellaneous Provisions. • (a) Any titles of the several Paragraphs of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. (b) Any notice, demand, or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally; and (i) in the case of Price, is addressed to or delivered personally to Price at 7421 Lyndale Avenue South, Richfield, MN 55423, and (ii) in the case of the City, is addressed to or delivered personally to the City at City of Richfield, 6700 Portland Avenue South, Richfield, MN 55423 or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Paragraph. (c) This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. (d) This Agreement constitutes the entire agreement between Price and the City with respect to the City Property and supersedes any other written or oral agreements between the parties on that subject. This Agreement can be modified only in a writing signed by the parties. (e) The City may terminate this Agreement: (i) if the termination is based upon health, safety or the need to make modifications within the City Property or by Price's transfer or sale of the Price Property, by the giving of 90 days written notice to Price; or Thomas Price Lease Agreement (cA~3 (ii) otherwise by the giving of 180 days written notice to Price. The termination shall be effective at the end of such nofce period, at which point neither party shall have any further obligation hereunder, except that Price's obligations under paragraph 3 shall survive. Price shall remove all structures from the City Property and restore the City Property to its previous condition not later than the effective date of the notice. (f) Price agrees to make no claim against the City for damages which Price may suffer as a result of the City's termination of this Agreement. (g) Except as specifically set forth herein, nothing in this Agreement shall be construed to exempt Price from or waive the application of any federal, state, or local law, rule, or regulation. (h) Nothing in this Agreement shall be construed as abandonment of the City Property by the City or as any relinquishment of any right the City may have with regard to the Property. Price specifically acknowledges and agrees that its construction and maintenance of the Property is at the sufferance of the City and subject to the City's-right to terminate such use in accordance with the provisions in paragraph 4(e) hereof. (i) In the event that the use of the City Property under this Agreement renders the City Property taxable, Price agrees to pay, before penalty attaches, all ad valorem property taxes or other similar taxes levied against the City Property. Q) This Agreement may be extended by the parties,from time-to-time and upon such terms as they shall mutually agree to, (k) No new structure shall be erected on the City Property without the prior written consent of the City; and, Price shall not use the City Property for any purpose other than in connection with the mobile home park without the prior written consent of the City. IN WITNESS WHEREOF, Price and the City have executed this Agreement this 26th day of July, 1999. CITY OF RICHFIELD By Martin J. Kirsch Its Mayor And Steven L. Devich Its Acting City Manager Thomas Price Thomas Price Lease Agreement ~l CITY OF RICHFIELD, MINNESOTA Council Letter No. 159 Agenda July 26, 1999 Issue Statement: Update of lobbyist activities and legislator comments on session. Background: In the 1999 legislative session, Richfield received a commitment of funding to help pay for redevelopment on Richfield's east side. The Legislature agreed that $30 million in Metropolitan Airports Commission (MAC) bonding should be used to help fund the redevelopment of the Cedar Avenue Corridor Airport=Redevelopment-Area. The legislature also created a Governor's Airport Community Stabilization Funding Task Force. The purpose being, "to identify and recommend funding sources" using the 1996 MSP Noise Mitigation Program Report and the Low Frequency Noise Policy Committee's report. Senators Dave Johnson and Jane Ranum and Representatives Dan Larson and Mark Gleason, with the help of lobbyists John Choi, Rich Ginsberg and Randy Asunma, worked of behalf of Richfield to push airport impact legislation to a serious level. Not only did Richfield succeed in regards to airport issues, the passage of the consolidated pension funding legislation authored by Senator Dave Johnson and subsequently incorporated into the Omnibus Pension Bill, of which Senator Jane Ranum was an author, was also a tremendous achievement. This legislation will return over $5 million of Richfield's assets back to the community in 1999. John Choi, Rich Ginsberg, and Randy Asunma will briefly talk about the 1999 legislative session and include any forecasts for the 2000 session. Senators Dave Johnson and Jane Ranum and Representatives Dan Larson and Mark Gleason will then be given the opportunity to share their insights on the legislative sessions. Recommended Motion: This is a discussion item only. Basis of Recommendation: City Council has requested that Richfield's lobbyists and legislators be invited to speak about the 1999 and 2000 legislative sessions. Alternative Recommendation: Defer discussion of the legislative session to a later Council meeting. Discussion/Decision Mode: This matter will be discussed at Richfield's City Council meeting on July 26, 1999. su '~Cctir~g City Manager SLD:cak