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03-23-98 agenda (2)CITY OF RICHFIELD, MINNESOTA . . MONDAY, MARCH 23, 1998 REGULAR CITY COUNCIL MEETING 7:00 P.M. COUNCIL CHAMBERS AGENDA INTRODUCTORY PROCEEDINGS CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF MINUTES OF THE (1) REGULAR CITY COUNCIL MEETING OF MARCH 9,1998; (2) JOINT CITY COUNCIURICHFIELD SCHOOL BOARD MEETING OF MARCH 16,1998; AND (3) SPECIAL CITY COUNCIL STUDY SESSION OF MARCH 16, 1998 PRESENTATIONS 1. INTRODUCTION OF STATE CHAMPION, GIRLS 12 AND UNDER, B HOCKEY TEAM 2. PRESENTATION OF CERTIFICATE OF APPRECIATION TO RICHFIELD OPTIMISTS FOR DONATION TO WOOD LAKE NATURE CENTER'S 1997 HALF- HAUNTED HALLOWEEN PROGRAM 3. PRESENTATION OF CERTIFICATES TO GIRL SCOUTS, ALONG WITH FAMILY AND FRIENDS, FOR THEIR ASSISTANCE AS HYDRANT MARSHALS FOR WINTER SEASON COUNCIL LETTER NO. 62 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 APPROV. 0 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 RESOLUTION AUTHORIZING THREE YEAR CONTRACT WITH FORTIS INSURANCE COMPANY FOR LONG-TERM DISABILITY INSURANCE BENEFITS FOR CERTAIN FULL-TIME EMPLOYEES C.L. 63 B. CONSIDERATION OF APPROVAL OF RESOLUTION REQUESTING MINNESOTA DEPARTMENT OF TRANSPORTATION TO PREPARE OFFICIAL RIGHT-OF-WAY MAP FOR 1-494 C.L. 64 C. CONSIDERATION OF APPROVAL OF AWARD OF CONTRACT TO ASPLUNDH TREE EXPERT COMPANY FOR 1998 REMOVAL OF DISEASED TREES ON PRIVATE PROPERTY IN TOTAL ESTIMATED AMOUNT OF $54,574 C.L. 65 D. CONSIDERATION OF APPROVAL OF SETTING APRIL 13, 1998 FOR PUBLIC HEARING FOR ISSUANCE OF NEW SECONDHAND GOODS DEALER LICENSE FOR GROW BIZ INTERNATIONAL, INC., D/B/A COMPUTER RENAISSANCE, 720 WEST 78TH STREET C.L. 66 E. CONSIDERATION OF APPROVAL OF REQUEST FOR ITINERANT PLACE OF AMUSEMENT LICENSE WITH FEE WAIVER FOR RICHFIELD WOMEN OF TODAY TWELFTH ANNUAL RICHFIELD COMMUNITY EASTER EGG HUNT AT AUGSBURG PARK ON APRIL 5, 1998 C.L. 67 PUBLIC HEARINGS 7. PUBLIC HEARING REGARDING SECOND INDOOR ICE SHEET REQUEST AND SELECTION OF ARCHITECT TO PREPARE PLANS AND SPECIFICATIONS FOR ADVERTISEMENT FOR BIDS FOR CONSTRUCTION . COUNCIL LETTER NO. 68 8. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AMENDING 1998 CAPITAL IMPROVEMENT BUDGET COUNCIL LETTER NO. 69 9. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION APPROVING LAYOUT FOR 66TH STREET BETWEEN LYNWOOD BOULEVARD AND • HUMBOLDT AVENUE AS PART OF 1-35W PROJECT TO EXTEND HIGH OCCUPANCY VEHICLE LANE COUNCIL LETTER NO. 70 10. PUBLIC HEARING AND SECOND READING OF NEW ORDINANCE SECTION 1187 REGULATING AND LICENSING PAWNBROKER BUSINESSES WITHIN CITY OF RICHFIELD COUNCIL LETTER NO. 71 PROPOSED ORDINANCES 11. FIRST READING OF ORDINANCE AMENDMENT TO RICHFIELD CITY CODE RELATED TO PARKING LOT STANDARDS COUNCIL LETTER NO. 72 12. FIRST READING OF ORDINANCE AMENDMENT TO SECTION 1181 WHICH REGULATES AND LICENSES TRANSIENT MERCHANTS, PEDDLERS, WAGON PEDDLERS AND SOLICITORS WITHIN CITY OF RICHFIELD COUNCIL LETTER NO. 73 ADMINISTRATIVE REPORTS AND OTHER BUSINESS 13. CONSIDERATION OF REPLANTING SALVAGED TREES FROM RICH ACRES/NEW FORD TOWN AT VETERANS MEMORIAL PARK OF RICHFIELD ALONG PORTLAND AVENUE COUNCIL LETTER NO. 74 AIRPORT BUSINESS 14. AIRPORT STATUS REPORT CORRESPONDENCE 15. LEGISLATIVE REPORT COUNCIL CHOICE 16. COUNCIL DISCUSSION ITEMS 17. CLAIMS AND PAYROLLS 18. 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 861-9702. /3 CITY OF RICHFIELD, MINNESOTA Council Letter No. 74 Agenda March 23, 1998 Issue Statement: Consideration of tree replacement at Veterans Memorial Park of Richfield. Background: As part of the street vacation process for New Ford Town, the City Council stipulated that the Metropolitan Airports Commission (MAC) would reimburse the City for costs incurred removing street lights and signs. Staff is planning to arrange for reimbursement of the street light and sign removal by trading for trees which the City will move to parks. If the City were to purchase 5" to 6" diameter trees, the cost would be about $450/tree including delivery and planting. The cost to the City to move existing trees of this size from Rich Acres/New Ford Town will be $100/tree. Assuming 20 trees can be moved (more than 20 have been identified but utilities or other problems sometimes prohibit moving trees), staff would be able to relocate $9,000 worth of trees for $2,000. The estimated cost to remove lights and signs from Rich Acres/New Ford Town is $6,000. These figures indicate that MAC's proposal to exchange trees as reimbursement to the City for the expenses incurred to remove street lights and signs would be an equitable exchange. Staff has talked with the City Attorney, and this exchange would be in compliance with the ordinance vacating the streets in Rich Acres/New Ford Town areas. Staff has been advised to proceed with the salvaging and relocation of the trees as soon as possible this spring because many of the trees are in the way of construction proposed in the very near future by the Minnesota Department of Transportation (MnDOT) and MAC. In fact, some of the trees marked by the City for salvage and transplant have been lost already. The Community Services Commission discussed at their March 17, 1998 meeting using some of these trees at the abandoned Veterans Memorial Park of Richfield maintenance facility site and recommended that the Council allow some of these trees to be used on the site. The Commission's main concerns were that the trees be planted along Portland Avenue only if they would not interfere with any future landscape plan for the area and that the trees not be planted in a straight line but be planted in groups. Staff believes this is a good use for these trees. The trees would be planted far enough behind the curb so they will not interfere with the power line along Portland Avenue. n /3-/ Recommended Motion: Authorize replanting of appropriate salvaged trees along Portland Avenue as recommended by the Community Services Commission. Basis of Recommendation: 1. Trees are available now. The community is concerned about the open space and trees planted now would alleviate some of this concern while not jeopardizing the longer range planting plan now under consideration. 2. Trees salvaged from the New Ford Town/Rich Acres site are an extremely inexpensive cost for the size and variety of tree available. 3. The use of salvaged trees as outlined above is acceptable to Don Brauer, the landscape consultant, who is working with the various interested groups regarding a restoration process for Veterans Memorial Park of Richfield, and is in keeping with the recommendation of the Community Services Commission. Alternative Recommendation: 1. Await the landscape plan for Veterans Memorial Park of Richfield before doing any replanting in the abandoned maintenance facility area and use the salvaged trees in other areas of the park or the City. 2. Plant the salvaged trees in an area or areas of Veterans Memorial Park of Richfield other than at the abandoned maintenance facility site along Portland Avenue. For example, trees could be planted on the east side of the park near 66th Street. 3. Plant the salvaged trees in other park areas or on other City owned properties in the City. Discussion/Decision Mode: This item is on the March 23, 1998 Council agenda. Council is asked to take action at this time so replanting may take place of the remaining trees marked for salvage. Respectfully submitted, Ja e fanager osser City JDP :cak 0 %a- CITY OF RICHFIELD, MINNESOTA Council Letter No. 73 Agenda March 23, 1998 Issue Statement: First reading of an ordinance amendment to Section 1181 which regulates and licenses transient merchants, peddlers, wagon peddlers and solicitors within the City of Richfield. Background: In May 1997, staff received letters from the following people expressing their continuing concern over transient merchants being able to sell flowers from various locations in the City: 1. Pat Harris of Richfield Floral & Gardens, Inc. - 811 East 66th Street 2. Greg Mjoes of Richfield Flowers & Events - 6515 Nicollet Avenue 3. Lorrie Olson, Property Manager for Midwest Management, Inc., which manages Richfield Shoppes (Richfield Flowers & Events is a tenant in that complex) On July 7, 1997, a Study Session was held with the City Council. Pat Harris spoke on behalf of the other merchants of how they thought it was unfair that flower vendors are allowed to sell their products from transient locations in the City. She said that those vendors don't pay yearly rent, taxes or have any other overhead as the merchants do She said they are not against competition but said that they are unable to compete n fairly with these vendors and believe they should not be allowed to sell as they curre do. At this Study Session, staff was directed to consult with the City Attorney's office and answer the following questions: • Can the City prohibit transient merchants from operating in the City? • Can the City restrict transient merchant sales to the Farmers Markets? • What, if anything, can the City do to further restrict transient merchant activities? tly At the October 6, 1997, Study Session, the above questions were answered: • No, the City cannot prohibit transient merchants from operating in the City. Such a prohibition could be challenged on grounds of denial of equal protection, violation of the Minnesota constitutional protections for home grown products, and possibly on Commerce Clause grounds. Other cities may have done so, but it is the City Attorney's opinion that those cities have not yet been sued. • No, the City cannot restrict transient merchant sales to the Farmers Markets. If a transient merchant can meet the zoning and parking requirements to conduct their activity in a C-2 zone and does not pose a traffic hazard or other public nuisance, there would seem to be no rational basis for treating that transient merchant differently from other retail merchants that sell the same products. /C_I • There were a number of suggestions made at this time for further restricting transient merchant activities. These suggestions ranged from requiring registration of exempt transient merchants (home grown food products), a minimum period of time to apply for a license prior to the activity beginning, zoning conditions, etc. At this Study Session, staff was directed by the City Council to explore the possibilities listed above and to amend the current ordinance and schedule it for a first reading in the future. Staff and the City Attorney have completed their review and are suggesting the following amendments to the current transient merchant ordinance: • All registration and license applications must be submitted to Public Safety staff a minimum of 14 days prior to the beginning of the activity. • All persons with sales or products of the farm or garden occupied and cultivated by the person making such sales must complete and sign an affidavit attesting that the products are home grown and must supply the Public Safety Department with the location from which these products were grown. Staff will visit these sites to assure that the affidavit is accurate. • Individuals currently exempt from licensing will be required to register with the Public Safety Department so that staff will be aware of who is selling what products in the community. • A license application for a Class I license or registration of a transient merchant activity must be accompanied by the written consent of the owner of the property on which the transient merchant business will be conducted. The owner of the property on which a transient merchant business is conducted is required to undertake due and diligent efforts to ensure that the business complies with the ordinance requirements. • Off-street parking must be adequate as required by off-street parking standards on file with the Community Development Department. • A transient business may only be conducted between the hours of sunrise to sunset. • A list of C-2 locations has been identified by the Community Development Department as the only acceptable locations for this type of activity. This will be available for applicants to review at the time of the submittal of their application/registration. Recommended Motion: Approve first reading of an ordinance amendment regulating the licensing and registration of transient merchants, peddlers, wagon peddlers and solicitors within the City of Richfield and set a public hearing and second reading for April 27, 1998. 0 Basis of Recommendation: 1. The ordinance amendments will provide staff with the opportunity to be more aware of which transient merchants are in the community and what products they are selling and where they are selling. 2. The ordinance amendments will also provide staff with more lead-time in processing licensing and registration requests. This has been a concern in the past. Alternative Recommendation: The Council could decide not to approve the ordinance amendment. This would mean that transient merchant activity in the City would remain as it currently is. For those exempted from licensing requirements, it would mean that they would not have to register with the City. It would also mean that staff would not have as much time to process requests. Discussion/Decision Mode: First reading of an ordinance amendment regulating the licensing and registration of transient merchants, peddlers, wagon peddlers and solicitors within the City of Richfield is presented for Council consideration at this time. Respectfully submitted, Jame I Prosser City Manager JDP:ds 11 is-3 • ORDINANCE NO. AN ORDINANCE RELATING TO TRANSIENT MERCHANT ACTIVITIES; AMENDING SECTION 1181 OF THE RICHFIELD CITY CODE THE CITY OF RICHFIELD DOES ORDAIN: Section 1. The title to Section 1181 of the Richfield City Code is amended to read as follows: "Transient merchants, peddlers and wagon peddlers, hawkeFs, Ganyassem and solicitors." Sec. 2. Subsection 1181.01, subdivision 4 of the Richfield City Code is amended to read as follows: Subd. 4. "Peddler" OF means a person who goes from house-to-house, from store-to-store or from place-to-place conveying or transporting goods, wares or merchandise, offering and exposing the same for sale. . Sec. 3. Subsection 1181.01, subdivision 6 of the Richfield City Code is amended to read as follows: Subd. 6. "Solicitor" " means a person who goes from or "n-aanv-as place-to-place or from street-to-street soliciting or taking or attempting to take orders for the sale of goods, wares, merchandise or personal services of any nature whatsoever for future delivery or future performance whether or not such person carries or exposes for sale a sample of the subject of any such order or whether or not the person is collecting advance payments for such orders. Sec. 4. Subsection 1181.03 of the Richfield City Code is amended to read as follows: 1181.03. License. Subdivision 1. License required. No transient merchant, wagon peddler, peddler, eanvasse? or solicitor can sell or offer for sale any goods, wares or merchandise without having first obtained the appropriate class of itinerant activity license for such activity from the Ginty meager public safety department Subd. 2. Classes of licenses. The following are the classes of • itinerant activity licenses: (a) Class I transient merchant (b) Class II wagon peddler (c) Class III peddler elEer (d) Class IV GanvasseF solicitor Subd. 3. Exception to license requirement. No itinerant activity license will be required for the following: (a) sales made to dealers by commercial travelers or selling agents in the usual course of business; (b) sales made by sheriffs, constables or other public officials selling goods, wares or merchandise according to law; (c) sales made by bona-fide assignees or receivers appointed in this state to make such sales for the benefit of creditors; (d) sales of products of the farm or garden occupied and cultivated by the person making such sales, except as required pursuant to subsection 615.19 of this code; (e) sales or offers for sale by peddlers or solicitors who appear at • the customer's home or place of business by an appointment which was made prior to such appearance; (f) the soliciting of money, donations, financial assistance or information for the purposes of any charitable, religious, political or educational organization; or selling or distributing literature or merchandise for which a fee is charged or solicited on behalf of any such organization; this exception does not include activity which has its primary purpose profit for the individuals who are engaged in such activity. Subd. 3a. Registration required. No person or entity shall engage in an itinerant activity listed in subsection 1181.03, subdivision 3 without first registering with the department of public safety. For transient merchant activities that will be conducted on property owned by someone other than the merchant, the registration must be accompanied by a written consent that meets the requirements of subsection 1181.04. Persons claiming an exemption under subsection 1181.03, subdivision 3, paragraph (d) must complete and sign an affidavit, on a form to be provided by the public safety department, attesting that the products being sold are products of the farm • or garden occupied and cultivated by the applicant or the applicant's principal and attesting to the location of the farm or garden on which the products were grown. /? Subd. 4. Proof of state license. In addition to the required license, persons desiring to obtain an itinerant activity license must, at the time of application file proof of the state license required by Minnesota Statutes, sections 329.099 to 329.17. Subd. 5. Application. Application for an itinerant activity license will be made on forms supplied by the city. Separate applications must be made for the individual or entity on whose behalf the business is being conducted and for each individual who will actually conduct the activity for which a license is required. All registration and license applications must be submitted to public safety staff a minimum of fourteen (14) days prior to the beginning of the activity. No licenses will be issued for any activity that does not adhere to this requirement The application must contain: (a) The applicant's name, age date of birth, address or residence. If the applicant is a partnership, the names of all partners must be verified by one such partner. If the applicant is a corporation, the names of all officers must be verified by one such officer. • (b) The applicant's (i) business and residence addresses for a period of five years prior to the application date, (ii) a statement as to whether the applicant is the sole owner of the business, and (iii) a statement to the effect that no persons other than those named in the application have any interest in the management and control of the business. (c) The class of itinerant activity license which is being requested and a brief description of the activity. (d) For applications for class I licenses, the location of the roe where the activity is to be conducted and YWFFften nGGRG9121+ of the ownei: thr-nol iQ?? acethe tFansment business, the name, address(es) and telephone number(s) of the owner(s) of the property: and a written consent that meets the requirements of subsection 1181.04. (e). The length of time (including the beginning and ending dates) for which the license is desired. (f) A photograph of the applicant taken within sixty days of the date of application. The photograph shall be two inches by 1C? -( 0 two inches, showing the head and shoulders of the applicant in a clear and distinguishable manner. (g) Information relating to any conviction of any crime by the applicant; felony, misdemeanor or city ordinance violation (other than traffic); the nature of the offense and conviction date. Subd. 6. Fee. The license fee for the various classes of itinerant activity licenses is fixed in Appendix D of this code. The fee must be paid in full at the time the application is presented. The fee will not be prorated or refunded. Subd. 7. Duration of license. Upon approval of any license application the Gity manager public safety director or designee shall specify the period for which the license is valid. The period may not exceed six months or the period remaining in the calendar year in which the license is, issued, whichever is less. Subd. 8. Issuance of license. If after review by the public safety department, the Gity public safety director or designee is satisfied that the application and all other required submittals are complete, that the applicant is of good character and standing and that the activity as described in the application meets the requirements of this section, the city der public safety director or designee will issue to applicant an itinerant activity license for the designated class described in the application. If the public safety director or designee disapproves the issuance of the license, the applicant will be notified in writing of such disapproval and the reasons for the decision. The notification will also inform the applicant of its right to appeal the disapproval to the city council. The notification will include a refund of the license fee. Falsification or an incomplete application is immediate grounds for denial. Subd. 9. Exhibition of license. Upon approval, the city will issue a license certificate to the licensee. The license certificate will contain the applicant's photograph and such other information as will appropriately describe all the conditions upon which the license is valid. The licensee must have the license in his physical possession at all times during which the licensed activity is being conducted, and must visibly display the same for inspection on their person in the case of an individual, or conspicuous place in the case of a business. Sec. 5. Section 1181 of the Richfield City Code is amended by adding a subsection as follows: /C ??' - / ? 1181.04. Transient merchant business; property owner responsibility. Subdivision 1. Owner responsible. The owner of property on which a transient merchant business is conducted is required to undertake due and diligent efforts to ensure that the business complies with the requirements of subsection 1181.05, subd. 2. Subd. 2. Owner consent. A license application for a class I license or a registration of a transient merchant activity must be accompanied by the written consent of the owner of property on which the transient merchant business will be conducted. The consent must be on a form provided by the city, must expressly acknowledge the property owner's knowledge of and acceptance of the responsibilities imposed by this subsection, and must be signed by the property owner. Subd. 3. Penalty. Violation of this subsection is a misdemeanor. Subd. 4. Merchant responsibility. Nothing in this subsection is intended to relieve or diminish the obligation of the merchant holding the class I license to comply with the requirements of this section. Sec. 6. Subsection 1181.05, subdivision 2 of the Richfield City Code is amended to read as follows: Subd. 2. Transient business. (a) the site of the transient business shall abut and have access to an arterial roadway; (b) no part of any transient business may be located upon a public right-of-way or within 150 feet of a street intersection; (c) the business must not cause undue traffic congestion on surrounding streets; (d) off-street parking must be adequate for both the transient business and other uses conducted on the parcel, as required by off-street parking standards on file with the community development department (e) the business must not generate noise, light, dust or odors which reasonably would tend to disturb or annoy occupants of adjacent residential properties; • (f) the transient business license must keep the parcel free of trash, litter and debris; (g) a transient business eat may be conducted only between the hourr-, of 8.-QQ a.Fn. and 7-09 . sunrise and sunset of any licensed day; (h) no transient business must be conducted by a person who has previously had an itinerant activity license revoked by the city or any other political subdivision; (i) no more than one transient business may operate from a single parcel at one time; Q) all tents, canopies, awnings or similar items and all water, electrical and lighting facilities must be in compliance with applicable codes and regulations; (k) transient businesses may be conducted only in C-2 districts of the city; (1) no outside storage of vehicles or merchandise is permitted unless specifically authorized by the meager public safety director or designee; (m) no transient business activity may be conducted in the city for more than eight days during any 60-day period; and on no more than three consecutive days; (n) signs used to advertise the transient business must not have a total aggregate sign face of more than six square feet; and the licensee must obtain the necessary temporary sign permit before utilizing any such sign; and (o) the transient merchant must have in possession written evidence of consent of the owner or leasee (whichever is required) of the parcel to conduct the transient business thereon. Sec. 7. Subsection 1181.05, subdivision 3 of the Richfield City Code is amended to read as follows: Subd. 3. Other classes. • (a) the activity must be conducted in such a manner as not to reasonably annoy or disturb residents of the community; /C? -9 (b) the activity must be conducted only between the heuFs of 9*00 a.Fn. and 5.00 . sunrise and sunset of any licensed day; and (c) the activity must not be conducted on any premises which have been conspicuously posted by the owner for no peddling or soliciting. Sec. 8. Subsection 1181.09, subdivision 1 of the Richfield City Code is amended to read as follows: 1181.09. Suspension or revocation. Subdivision 1. Action by si aflaEOW public safety director. If the public safety director or designee determines that the licenseehas violated any of the provisions of this section, the public safety director will proceed as follows: (a) If the licensee has been convicted in a court of competent jurisdiction for a violation of the provisions of this section which relate to the current term of the license or permit or if the consent described in subsection 1181.03, subd. 5(d) has been withdrawn, the citymanagef eublic safety director or designee will forthwith suspend the license for a period of time not to exceed the date of the next regularly scheduled city council meeting which is at least 14 days from the first day of the suspension. Notice of the suspension shall be mailed to the licensee at the address shown in the application. (b) If the licensee has been charged with, but has not been convicted of, a violation of the provisions of this section which relate to the current term of such license, the meager public safety director or designee shall notify the licensee in writing at the address contained in the application of the determination and in the notification shall also notify the licensee that unless a cash deposit (deposit) is made to the city within 7 days of the notification, the license will be automatically suspended for the term described in subsection 1181.09, subd. 1(a). The deposit shall be $500 for each charged violation,and shall serve to ensure the faithful performance by licensee of the provisions of this section between the date of notification and the date on which the city council meets to consider the matter. (c) If no charge has been brought against the licensee, the city eager public safety director or designee shall notify the a-io licensee or permittee that the city council will consider suspension or revocation of the license at its next regularly scheduled council meeting at least 14 days of the date on which the notice is mailed. Sec. 9. Subsection 1181.09, subdivision 2 of the Richfield City Code is amended to read as follows: Subd. 2. Hearing. At the hearing the licensee or their representative will have an opportunity to rebut any of the information contained in the city manaffeFS public safety director's notice and to offer evidence in mitigation thereof. Adopted this day of ,1998. Martin J. Kirsch, Mayor ATTEST: • Thomas P. Ferber, City Clerk 11 / a // Temporary Vendors -- Permitted Locations r? • Property Address Street Name Excess Parking 811 66th St E Y 1115 66th St E Y 1201 66th St E Y 1208 66th St E Y 1208 66th St E Y 1415 66th St E Y 1430 66th St E Y 1504 66th St E Y 1520 66th St E Y 1820 66th St E Y 220 66th St W Y 300 66th St W Y 2409 66th St W Y 2800 66th St W Y 2900 66th St W Y 3020 66th St W Y 305 77th St E Y 6200 Cedar Ave S Y 6244 Cedar Ave S Y 6511 Cedar Ave S Y 6521 Cedar Ave S Y 6700 Cedar Ave S Y 7034 Cedar Ave S Y 7226 Cedar Ave S Y 7400 Cedar Ave S Y 6436 Lyndale Ave S Y 6438 Lyndale Ave S Y 6444 Lyndale Ave S Y 6444 Lyndale Ave S Y 6620 Lyndale Ave S Y 6724 Lyndale Ave S Y 7412 Lyndale Ave S Y 7512 Lyndale Ave S Y 7529 Lyndale Ave S Y 7529 Lyndale Ave S Y 7700 Lyndale Ave S Y 6440 Nicollet Ave S Y March 18, 1998 / P-- /a • • Property Address Street Name Excess Parking 6445 Nicollet Ave S Y 6300 Penn Ave S Y 6319 Penn Ave S Y 6325 Penn Ave S Y 6500 Penn Ave S Y 6528 Penn Ave S Y 6613 Penn Ave S Y 6645 Penn Ave S Y 6800 Penn Ave S Y 6800 Penn Ave S Y 6527 Portland Ave S Y 7701 Portland Ave S Y 7733 Portland Ave S Y March 18, 1998 U CITY OF RICHFIELD, MINNESOTA Council Letter No. 72 Agenda March 23, 1998 Issue Statement: First reading of an ordinance amendment to the Richfield City Code related to parking lot standards. Background: Section 800 of the City Code establishes regulations for off-street parking areas. Staff members from the Public Works Department, Community Development Department and Inspections Division have reviewed the off-street parking ordinance and recommend that some changes be made in order to clarify the requirements, update standards, and strengthen the ability of the City to enforce the requirements. The recommended changes are explained in Attachment A. Recommended Motion: Approve first reading of an amendment to Section 800 of the Richfield City Code related to parking lot standards. Basis of Recommendation: 1. The off-street parking ordinance has not been changed for many years. It is appropriate to review and update ordinances on a regular basis. 2. It is important to establish clear standards for the construction of commercial and multiple family parking lots in the City. 3. The ordinance changes have been reviewed by Inspections, Engineering and Planning staff. 4. Legal counsel has reviewed the proposed ordinance. Alternative Recommendation: 1. Approve first reading of the amendment with modifications. 2. Deny this amendment at first reading. Discussion/Decision Mode: The first reading is set for March 23, 1998. If approved, a public hearing and second reading will be scheduled on April 27, 1998. Respe Ily submitted, James . Prosser City Manager JDP:ds ATTACHMENT A Changes to Section 800 f Off-Street Parking Regulations PROPOSED CHANGE BASIS • Remove references to residential • This topic was added to the Zoning driveways. Ordinance in 1993 but was never removed from Section 800. • • Change language listing approved Clarifies the acceptable materials. surfaces for commercial driveways and parking lots. • Clarify which department director is • The Public Works Director is responsible responsible for the different parts of the for establishing standards for parking lots ordinance. and the Community Development Director is responsible for processing off-street parking permit applications. • Add references to the City's Stormwater Management Plan. • The Stormwater Management Plan provides the rules for stormwater management in the City. Referencing it in the ordinance makes it clear that its policies have to be followed in parking lot construction. • Add language relating to the need for an Staff currently looks for this type of application to address access, bicycle information when reviewing site plans. It parking facilities, transit stops, sediment is appropriate to mention in City Code the and erosion control. information that the City looks for in an off- street parking permit application. • Clarify the land uses that are required to meet the off-street parking standards. The current language is confusing because it refers to zoning districts instead of land uses. By using land uses instead of zoning districts, it is clear that the parking standards apply to uses such as churches and schools in the R district. Add language regarding shared parking areas. • It is important that a formal shared use agreement be established when property owners propose to share parking facilities. • Clarify the standards used when reviewing The ordinance should clearly state what a proposed parking lot. standards the City uses in order to approve an off-street parking permit. • Clarify language relating to parking lot screening. • The current language is confusing as to what types of uses are required to screen parking lots. Also, adding language regarding maintenance may help with • n fL_J I ! --01 ATTACHMENT A Changes to Section 800 Off-Street Parking Regulations • Specify permitted pavement types, curb and gutter requirements, aisle and stall markings, sign installation. • Clarify boulevard restrictions. • Add language to require that a parking lot be nearly completed before a building can be occupied. code enforcement in cases where screening fences are not maintained. • Adds specificity to the requirements so it is clear to applicants what is required. • It is sometimes unclear to applicants that the boulevard cannot be used for private parking; adding boulevard references makes the restrictions clearer. In the past, the Inspections Division has received requests for an occupancy permit before the parking lot has been completed. The language provides a legal basis for not allowing occupancy without a parking lot. 1 ?-3 to BILL NO. AMENDMENT TO SECTION 800 OF THE ORDINANCE CODE OF THE CITY OF RICHFIELD THE CITY OF RICHFIELD DOES ORDAIN: A. Section 800 of the ordinance code of the City of Richfield entitled "Streets, Alleys, and Public Grounds" is hereby amended by amending subsection 800.13 as follows: 800.13. Driveways: special regulations. Subdivision 1. VV Qth: Feetdent+al. Ne S u"Width: commercial,--ef industrial or multi-family. No driveway from private property serving a commercial, multifamily or industrial use entering a public street may be less than 26 feet nor more than 32 feet in width. Upon a showing of • necessity and public convenience, the Public Works Director Gity may authorize a greater or lesser width. Subd. 23. Over sidewalk. Where a driveway is constructed over a public sidewalk, that portion of the driveway falling between the building side of the sidewalk and the street curbwith"' tho PUbliG street must be paved with concrete in accordance with city specifications for sidewalk construction. Subd. 34. Curb cut. Where an existing curb is cut for driveway construction, the curb must be returned to the sidewalk line in accordance with city specifications for curb construction. Subd. 45. Surfacing: commercial. Driveways on private property within the city serving a commercial, multifamily, or industrial use must be surfaced with op rtland cemente hec-concrete1 asphaltic cement concrete or paver block. Subd. 56. SurfaR-on Rfesidential Drivewavs. All residential drivewavs must meet the requirements for residential driveways of Section 521 of the Zoning Ordinance. 11-q B. Section 800 of the ordinance code of the City of Richfield entitled "Streets, Alleys, and Public Grounds" is hereby amended by amending subsection 800.15 as follows: 800.15. Duties of Public Works Ddirector. Subdivision 1. Specifications. The Public Works director shall prepare and have available for inspection standard specifications for the construction, removal and repair of driveways, curbs, and curb and gutter. Work must be performed in accordance with these specifications. Subd. 2. Inspection. The Public Works director may reg&PpFevide f9F periodic inspection of any work being performed under this section to insure compliance. C. Section 800 of the ordinance code of the City of Richfield entitled "Streets, Alleys, and Public Grounds" is hereby amended by amending subsection 800.17 as follows: 800.17. Parking areas. Subdivision 1. Parking area: permits. No person may establish or make available any lot, tract, or parcel of land or portion thereof as a parking area in any zoneing district-='_# as defined in the zoning code or permit land to be so used for other than single family or two family residence parking in any zone without first having obtained a permit as provided in subdivision 2. No building permit may be issued pursuant to the zoning code for the construction of any industrial, commercial, business, trade, institutional, multiple residence, or similar building or structure unless adequate provision has been made for off-street parking, unloading and for the safe accommodation of vehicular and pedestrian traffic and until the permit required by this subsection has been issued. Subd. 2. Application for permits. Application for an off-street parking permit shall be made in writing to the Community Development director. The application must be accompanied by a plan of the property proposed to be used showing the following information: (d) the location of driveways or other vehicular access points connecting the area with any public street as consistent with the city's access management standards; (e) the location or proposed location for bafHeF urbs and gutter and sidewalks; (i) location of bicycle parking facilities; 0 (m) location of transit stops and benches (if applicable); &) location and size of any proposed lights; //-5 0 (4) type of surfacing to be used; (Mk) stormwater management plan in compliance with the city's stormwater management requirements for new or redeveloped construction; faGilitiesi iaRd- ,avrrr,v ? eR,a (nf) sediment and erosion control plan; and (o:g)other information reasonably required by the Community Development director to insure that the proposed parking area will comply with all applicable provisions of this code and all standard specifications prepared under subsection 800.23. Subd. 4. Adjoining areas: joint application. Owners of two adjoining areas may join in an application for a single parking area provided that a cross-use agreement is recorded against the property. Subd. 5. Issuance of permit: council action. Upon submission of the application and payment of the required fee, the City Mananager shall submit the application to the • council with recommendations. If the council finds that the proposed parking area will adequately serve the purpose for which it is proposed and will not have an adverse effect upon the public safety or general welfare, the council may issue the permit requested. D. Section 800 of the ordinance code of the City of Richfield entitled "Streets, Alleys, and Public Grounds" is hereby amended by amending subsection 800.19 as follows: 800.19. Conditions -governing issuance. The council may condition the issuance of a permit upon the prompt execution of contracts for construction of the parking area and the providing of such security as it deems necessary to insure establishment of the parking area in accordance with the plan approved. In determining whether or not to grant the application, the council shall take into account the following factors ^^-ar FeleyaR+ faGt9FG: (d) the adequacy of the provisions made for pedestrian, bicycle, and mass transit traffic in and around the area; (e) the adequacy, from the standpoint of channeling traffic, of the distance between driveways and intersections and other driveways-f, Fn the staRdpeaRt 9f r?-6 0 (h) compliance with the requirements of subsections 800.17 and 800.23. E. Section 800 of the ordinance code of the City of Richfield entitled "Streets, Alleys, and Public Grounds" is hereby amended by amending subsection 800.23 as follows: 800.23. Parking areas: special regulations. Subdivision 1. General. A parking area adjoining or adjacent to any singled or multiple family residencet shall be effectively screened from the residential usedistriAt by a fence, wall, or compact hedge, or a combination thereof. The screening shall be kept in good condition and free from advertising matter. The area shall have a side yard on the side on. which a multiple residence or residential district is located, at least 15 feet wide, which shall be maintained free of parking, be landscaped, and be kept in a dust, mud and refuse-free conditiona4 at all times. Lighting on the area shall be so placed as to reflect light away from any adjoining residence or multiple residence as defined in the zoning code. Subd. 2. Surface. Parking areas and all driveways and approaches thereto shall be surfaced with concrete, blacktop, or paver blocke-"+" +,--e?^r r;^? payemeet. Sidewalks shall be of concrete. Areas not used for driving, parking or pedestrian traffic shall be landscaped and kept free of mud, dust and refuse. Subd. 3. Barrier curb. A full concrete bade curb shall be constructed on the perimeter of each such area. Concrete perimeter curb shall be of MnDOT Type B-612. Subd. 4. Curbing. Concrete curb and gutter, with curb returns, shall be constructed at all intersections and approach entrances. Sidewalks shall e Subd. 5. Aisle and Stalls width. Parking stalls shall be clearly marked and distinguished from driving lanes, aRd °"^" have ^i+h^r a E;en^r^+^ ^„rh ^r a sidpwgan, at th8 fF9Rt 9F side. Parking stalls and aisles shall be designed, installed and maintained according to the standards on file with the Public Works Department. Subd. 6. Signs. Traffic signs and devices shall be installed, directing traffic within the area and traffic entering or leaving the area per the Minnesota Manual on Uniform Traffic Control Devices. Subd. 7. Drainage. The area shall be so graded and drained as to dispose of all surface water. Wh nesee, iy.Parcels greater than 1/2 acre shall be required to provide proper on-site stormwater collection,-PF9peF 6ter s s"°" be installed +° saFFY °wav storm water fr^m +h° .,r°° s,,dare per the Citv's stormwater management plan except where it is determined by the Public Works Director that on-site collection is impractical or creates an undue hardship. Subd. 8. Boulevards. --BewlevaFds--shall ^^+ be O^^ aRY S Gh a Parking shall be on private property only. Boulevards shall be crossed by driveways or approaches only at approved points. Where necessary to prevent traffic from crossing at other than such approved points, barriers or barricades of an approved type shall be erected on or near the boulevard area. A curb opening permit must be obtained for work in the boulevard area, per subsection 800.11. Subd. 9. Completion. Certificates of Occupancy shall not be issued for any building until all perimeter curb and gutter and at least one lift of blacktop has been installed. F. Section 800 of the ordinance code of the City of Richfield entitled "Streets, Alleys, and Public Grounds" is hereby amended by amending subsection 800.25 as follows: 800.25. Duties of director. The Public Works director shall prepare standard speci- fications for the construction, marking and equipping of parking areas. In the preparation of specifications relating to traffic flow and traffic control signs and devices the director shall consult with the director of public safety. The specifications prepared under this subsection shall be available for use by applicants. is Passed by the City Council of the City of Richfield, Minnesota this day of , 1998. Martin J. Kirsch, Mayor ATTEST: Thomas P. Ferber, City Clerk 0 CITY OF RICHFIELD, MINNESOTA Council Letter No. 71 / Agenda March 23, 1998 Issue Statement: Public hearing and second reading consideration of a new ordinance section 1187 regulating and licensing pawnbroker businesses within the City of Richfield. Background: Public Safety has found that pawn businesses have the ability to receive and transfer property easily and criminals often attempt to use pawn services to conceal their crimes and to dispose of stolen property. Public Safety further finds that the pawn industry has outgrown the City's current ability to effectively or efficiently identify criminal activity related to pawn shops. The proposed ordinance will increase the City's ability to identify criminal activity in a more timely and expedient manner. Staff has researched other methods that might be useful and has found that the Automated Pawn System (APS) developed by and currently being used by the City of Minneapolis is the most effective system available. There is also a growing trend for other metropolitan Police Departments to utilize this system as well and for a high level of consistency to exist in information sharing between suburban departments. This system will require pawnbroker businesses to electronically transfer all necessary pawn information to Public Safety staff on a daily basis. Staff will then be able to more easily and readily identify issues or problems that may be occurring in the City in this type of business. Staff has developed the ordinance and has met with the owners of the two pawnbroker establishments in the City of Richfield. They provided input on the ordinance and final changes were made. One of the pawnbrokers in the City requested that the age for a person to pawn an item be left at 21 rather than at 18. It is his experience that someone who is 18 and is pawning an item creates more significant problems than someone who is 21 pawning an item. With the proposed new ordinance, staff is recommending the following changes in the license fee structure: Current Proposed Annual license fee $1,750 $2,500 Owner investigation fee $1,200 $1,500 Manager investigation fee None $500 Employee investigation fee None $50 per employee Transaction fee None $1.50 per transaction is Staff is recommending the addition of manager and employee investigation fees to the new ordinance, as it is imperative that background investigation checks are performed on all individuals employed in a pawnbroker establishment. This type of check on employees I0 has not been conducted in the past. This would provide staff with the ability to determine if any of those employees have a criminal history record. Staff is also recommending a per transaction fee of $1.50 as Richfield will be charged a $1.00 fee by Minneapolis on a per transaction basis for the use of the Automated Pawn System. The additional $.50 is to cover staff administrative costs and increased monitoring. The City's current pawnbroker ordinance, City Code Section 1186, would be superseded by the ordinance being recommended. Staff will also be undertaking a review and revision of the City's current second hand goods dealer ordinance within one year. Any references in City Code Section 1186 to second hand goods dealers will remain as they currently are until this review and revision are completed. An ordinance has been completed and was presented to the City Council for a first reading on February 23, 1998. Attached to this Council Letter is a resolution authorizing publication of the ordinance by title and summary rather than in its entirety. The publication of the complete text of the ordinance is not cost effective. The City Council would need to have unanimous approval of the resolution. Without unanimous approval, the full text of the ordinance will have to be published. It is not necessary to have unanimous approval of the ordinance. • Recommended Motion: Public hearing and second reading of an ordinance regulating and licensing pawnbroker businesses within the City of Richfield. Basis of Recommendation: 1. The ordinance will provide Public Safety staff with the opportunity to more easily and more quickly identify criminal activity related to pawn shops. Alternative Recommendation: 1. The Council could decide not to approve the public hearing and second reading of City Code Section 1187 which would mean that while pawnbrokers would continue to be licensed and regulated by the City, criminal activity related to pawn shops would not be identified as easily or as quickly. Discussion/Decision Mode: Second reading and public hearing of an ordinance regulating and licensing pawnbroker businesses within the City of Richfield is being presented for Council consideration at this time. Respec Ily submitted, • Jam D. Prosser City anager JDP:ds 1o-a- CITY OF RICHFIELD BILL NO. AN ORDINANCE REGULATING PAWNBROKER ESTABLISHMENTS; REQUIRING A LICENSE; ESTABLISHING REPORTING REQUIREMENTS; AMENDING THE CITY CODE BY ADDING A NEW SECTION 1187; SUPERSEDING PAWNBROKER REGULATIONS IN SECTION 1186 THE CITY OF RICHFIELD DOES ORDAIN: Section 1. The Richfield City Code is amended by adding a new section as follows: Section 1187 - Pawnbrokers Purpose. The city council finds that because pawn businesses have the ability to receive and transfer property easily and quickly, criminals often attempt to use pawn services to conceal their crimes and to dispose of stolen property. The city council further finds that the pawn industry has outgrown the city's current ability to effectively 0 or efficiently identify criminal activity related to pawn shops. The city council also finds that consumer protection regulation is warranted in transactions involving pawnbrokers. The purpose of this chapter is to prevent pawn businesses from being used as facilities for the commission of crimes and to assure that such businesses comply with basic consumer protection standards, thereby protecting the public health, safety, and general welfare of the citizens of the city. To help the public safety department better regulate current and future pawn businesses, decrease and stabilize costs associated with the regulation of the pawn industry, and increase identification of criminal activities in the pawn industry through the timely collection and sharing of pawn transaction information, this chapter also implements and establishes the required use of the automated pawn system. 1187.03. Definitions. Subdivision 1. For purposes of this section, the terms defined in this subsection have the meanings given them. Subd. 2. Pawnbroker. The term "pawnbroker" means: (a) Except as provided in paragraph (b), "pawnbroker" means a person engaged in whole or in part in the business of lending money on the security of pledged goods left in pawn, or in the business of purchasing tangible personal property to be left in pawn on the condition that it may be redeemed or repurchased by the seller for a fixed price within a fixed period of time. 0 lo-3 (b) The following are exempt from the term "pawnbroker": any bank regulated by the state of Minnesota, the comptroller of the currency of the United States, the Federal Deposit Insurance Corporation, the board of governors of the Federal Reserve System, or any other federal or state authority and their affiliates; any bank or savings association whose deposits or accounts are eligible for insurance by the Federal Deposit Insurance Corporation or any successor to it and all affiliates of those banks and savings associations; any state or federally chartered credit union; and any industrial loan and thrift company or regulated lender subject to licensing and regulation by the Minnesota department of commerce. To the extent that a pawnbroker's business includes buying personal property previously used, rented or leased, or selling it on consignment, the provisions of this section shall be applicable. Subd. 3. Pawn transaction. "Pawn transaction" means any loan on the security of pledged goods or any purchase of pledged goods on the condition that the pledged goods are left with the pawnbroker and may be redeemed or repurchased by the seller for a fixed price within a fixed period of time. The term "pawn transaction" includes the renewal, extension or redemption of a pawn transaction previously made. Subd. 4. Person. "Person" means an individual, partnership, corporation, limited liability company, joint venture, trust, association, or any other legal entity, however organized. Subd. 5. Pledged goods. "Pledged goods" means tangible personal property other than choses in action, securities, bank drafts, or printed evidence of indebtedness, that are purchased by, deposited with, or otherwise actually delivered into the possession of a pawnbroker in connection with a pawn transaction. Subd. 6. Reportable transaction. "Reportable transaction" means every pawn transaction, except: (a) the bulk purchase or consignment of new or used merchandise from a merchant, manufacturer or wholesaler having an established permanent place of business, and the retail sale of said merchandise, provided the pawnbroker must maintain a record of such purchase or consignment which describes each item, and must mark each item in a manner which relates it to that transaction record; and (b) retail and wholesale sales of merchandise originally received by pawn or purchase, and for which all applicable hold and/or redemption periods have expired. ID4 Subd. 7. Billable transaction. "Billable transaction" means every reportable transaction except renewals, redemptions or extensions of existing pawns on items previously reported and continuously in the pawnbroker's possession. 1187.05. License required. Subdivision 1. License required. No person shall engage in the business of pawnbroker at any location without a pawnbroker license for that location. No pawnbroker license may be transferred to a different location or a different person. Issuance of a license under this subsection shall not relieve the licensee from obtaining any other licenses required to conduct business at the same or any other locations. Subd. 2. Existing businesses. Existing pawnbroker establishments must apply fora license and pay the required fee within six months of adoption of this ordinance. In such cases, the annual license fee established by this ordinance will be prorated from the first day of the month in which application is made, and credit will be given for the unused portion of any pawnbroker license fee previously paid and covering the same time period. 1187.07. License fee. The annual license fee for a pawnbroker license is set by appendix D. The license fee must be paid at the time of application for the license. 1187.09. License term. All licenses shall expire on December 31st of the year in which the license is issued. Except as provided in 1187.05, subdivision 2, the annual license fee will not be prorated. 1187.11. Application. Subdivision 1. Application required. An application form provided by the department of public safety must be completed by every applicant for a new license or for renewal of an existing license. Every applicant must provide the information required by this subsection. Subd. 2. Individual applicants. If the applicant is an individual, the applicant must provide the following information: (a) The name, place and date of birth, street resident address, and phone number of the applicant; (b) Whether the applicant is a citizen of the United States or resident alien; (c) Whether the applicant has ever used or has been known by a name other than the applicant's name, and if so, the name or names used and information concerning dates and places used; (d) The name of the business if it is to be conducted under a designation, name, or style other than the name of the applicant and a certified copy of the certificate as required by Minnesota Statutes, Section 333.01; (e) The street address at which the applicant has lived during the preceding five (5) years; • • • (f) The type, name and location of every business or occupation in which the applicant has been engaged during the preceding five (5) years and the name(s) and address(es) of the applicant's employer(s) and partner(s), if any, for the preceding five (5) years; (g) Whether the applicant has ever been convicted of a felony, crime, or violation of any ordinance other than a traffic ordinance; if so, the applicant must furnish information as to the time, place and offense of all such convictions; (h) The physical description of the applicant; (i) If the applicant does not manage the business, the name of the manager(s) or other person(s) in charge of the business and all information concerning each of them required in paragraphs (a) through (h) of this subdivision. Subd. 3. Partnership applicant. If the applicant is a partnership, the applicant must provide the following information: (a) The name(s) and address(es) of all general and limited partners and all information concerning each general partner required in subdivision 2, paragraphs (a) through (h) of this subsection; (b) The name(s) of the managing partner(s) and the interest of each partner in the licensed business; (c) A true copy of the partnership agreement shall be submitted with the application; if the partnership is required to file a certificate as to a trade name pursuant to Minnesota Statutes, Section 333.01, a certified copy of such certificate must be attached to the application; (d) A true copy of the federal and state tax returns for the partnership for the two (2) years prior to application; (e) If the applicant does not manage the business, the name of the manager(s) or other person(s) in charge of the business and all information concerning each of them required in subdivision 2, paragraphs (a) through (h) of this subsection; Subd. 4. Corporate applicant. If the applicant is a corporation or other organization, the applicant must provide the following information: (a) The name of the corporation or business form, and if incorporated, the state of incorporation; (b) A true copy of the Certificate of Incorporation, Articles of Incorporation or Association Agreement, and By-laws shall be attached to the application; if the applicant is a foreign corporation, a Certificate of Authority as required by Minnesota Statutes, Section 303.06, must be attached; (c) The name of the manager(s) or other person(s) in charge of the business and all information concerning each manager, proprietor, or /o-( agent required in subdivision 2, paragraphs (a) through (h) of this subsection; (d) A list of all persons who control or own an interest in excess of five (5) percent in such organization or business form or who are officers of the corporation or business form and all information concerning said persons required in subdivision 2, paragraphs (a) through (h) above. This paragraph (d) shall not apply to a corporation whose stock is publicly traded on a stock exchange and is applying for a license to be owned and operated by it. Subd. 5. All applicants. All applicants shall provide the following information: (a) Whether the applicant holds a current pawnbroker, precious metal dealer or secondhand goods dealer license from any other governmental unit; (b) Whether the applicant has previously been denied, or had revoked or suspended, a pawnbroker, precious metal dealer, or secondhand goods dealer license from any other governmental unit; (c) The location of the business premises; (d) If the applicant does not own the business premises, a true and complete copy of the executed lease; (e) The legal description of the premises to be licensed; (f) Whether all real estate and personal property taxes that are due and payable for the premises to be licensed have been paid, and if not paid, the years and amounts that are unpaid; (g) Whenever the application is for premises either planned or under construction or undergoing substantial alteration, the application must be accompanied by a set of preliminary plans showing the design of the proposed premises to be licensed; (h) Such other information as the city may require. Subd. 6. Application execution. All applications for a license under this subsection must be signed and sworn to under oath or affirmation by the applicant. If the application is that of a natural person, it must be signed and sworn to by such person; if that of a corporation, by an officer thereof; if that of a partnership, by one of the general partners; and if that of an unincorporated association, by the manager or managing officer thereof. Subd. 7. Fee. The license application must be accompanied by the license and investigation fees required by subsections 1187.07 and 1187.13 of this code. 1187.13. License investigation. Subdivision 1. Background investigation. The public 10 safety director of designee must investigate into the truthfulness of the statements set forth in the application and shall endorse the findings thereon. The applicant must /O,9 furnish to the public safety director or their designee such evidence as the public safety director or their designee may reasonably require in support of the statements set forth in the application. Subd. 2. Investigation fee. An applicant must reimburse the city for its actual investigation, subject to the limitations in this subdivision. An applicant for a new license under this chapter, or for the renewal of an existing license that is more than six (6) months past due, shall deposit with the public safety department at the time an original application is submitted, an amount sufficient to cover the costs involved in verifying the license application and to cover the expense of any investigation needed to assure compliance with this subsection. The amount of the deposit shall be one thousand five hundred dollars ($1,500) for each person to be investigated. Upon completion of the investigation, the public safety department must either refund any remaining balance on deposit or submit an invoice for the actual costs incurred in excess of the deposit. The licensee shall pay any invoice for investigation fees within thirty (30) days. Failure to do so is a violation of this subsection. 1187.15. Employee Background Checks. Subdivision 1. New Manager. When a licensee places a manager in charge of a business, or if the named manager(s) in charge of a licensed business changes, the licensee must complete and submit the appropriate application, on forms provided by the department of public safety, within fourteen (14) days. The application must include all appropriate information required in section 1187.11 concerning the new manager(s). Subd. 2. Other Employees. When a licensee hires an employee other than a manager, the licensee must complete and submit the appropriate application, on forms provided by the department of public safety, within fourteen (14) days after the employee is hired. The application must include all appropriate information required in section 1187.11, subdivision 2, paragraphs (a)-(c), (e), (g), and (h). Subd. 3. Investigation fee. The new manager application must be accompanied by a deposit equal to five hundred dollars ($500.00) for each new manager named in the application. The application for new employees other than managers must be accompanied by a deposit equal to fifty dollars ($50.00) for each new employee named in the application. The public safety director or designee shall conduct an investigation into the truthfulness of the application. Upon completion of the investigation, the public safety department must either refund any remaining balance on deposit or submit an invoice for the actual costs incurred in excess of the deposit. The licensee shall pay any invoice for investigation fees within thirty (30) days. Failure to do so is a violation of this subsection. 1187.17. Public hearing. A pawnbroker license will not be issued or renewed without a public hearing. Any person having an interest in or who will be affected by the proposed license will be permitted to testify at the hearing. The public hearing must be /D_3 4 preceded by at least ten days' published notice specifying the location of the proposed licensed business premises. 1187.19. Persons ineligible for a license. No licenses under this section will be issued to an applicant who is a natural person, a partnership if such applicant has any general partner or managing partner, a corporation or other organization if such applicant has any manager, proprietor or agent in charge of the business to be licensed, if the applicant: (a) Is a minor at the time that the application is filed; (b) Has been convicted of any crime directly related to the occupation license as prescribed by Minnesota Statutes, Section 364.03, Subd. 2, and has not shown competent evidence of sufficient rehabilitation and present fitness to perform the duties of a licensee under this section as prescribed by Minnesota Statutes, Section 364.03, Subd. 3; (c) A person whom the city council determines not to be of sufficient good moral character and repute; (d) A person not a citizen of the United States or a resident alien; (e) A person who within five years of the license application date had a pawnbroker license revoked; (f) A pawnbroker license will not be issued to any partnership or corporation if such applicant has a partner, managing partner, manager, proprietor, or agent who does not meet the standards set forth in paragraphs (a) through (e) of this subsection. 1187.21. Bond required. Before a license will be issued, every applicant must submit a five thousand dollar ($5,000.00) bond on forms provided by the department of public safety. All bonds must be conditioned that the principal will observe all laws in relation to pawnbrokers, and will conduct business in conformity thereto, and that the principal will account for and deliver to any person legally entitled any goods which have come into the principal's hand through the principal's business as a pawnbroker, or in lieu thereof, will pay the reasonable value in money to the person. The bond shall contain a provision that no bond may be canceled except upon thirty (30) days written notice to the city, which shall be served upon the department of public safety. 1187.23. Denial, suspension or revocation. A license under this section may be denied, suspended or revoked by the council, after an investigation and public hearing where the licensee is granted the opportunity to be heard, for one or more of the following reasons: (a) The operation of the business is in conflict with any provision of this code; (b) The operation of the business is in conflict with any health, fire, building, building maintenance, zoning, or any other applicable codes or laws; (c) The applicant or licensee has failed to comply with one or more provisions of this section or any statute, rule or ordinance pertaining to the business of pawnbroker; (d) The applicant is not a citizen of the United States or a resident alien, or upon whom it is impractical or impossible to conduct a background or financial investigation due to the unavailability of information; (e) The applicant has committed fraud, misrepresentation or bribery in securing or renewing a license; (f) The applicant has committed fraud, misrepresentation or false statements made in the application and investigation for, or in the course of, the applicant's business; (g) The applicant or licensee has been convicted of any state or federal law relating to receiving stolen property, sale of stolen property or controlled substance, burglary, robbery, theft, damage or trespass to property, operation of a business, or any law or ordinance regulating the business of pawnbroker; (h) Issuance or renewal of the license would adversely affect public health, safety or welfare; (i) The owner of the premises licensed or to be licensed would not qualify for a license under the terms of this section. 1187.25. Records required. Subdivision 1. Records of transactions. At the time of any reportable transaction other than renewals, extensions or redemptions, every licensee must immediately record in English the following information in a computerized record approved by the public safety director or designee: (a) A complete and accurate description of each item including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such an item; (b) The purchase price, amount of money loaned upon, or pledged therefor; (c) The maturity date of the transaction; (d) The amount due, including monthly and annual interest rates and all pawn fees and charges; (e) Date, time and place the item of property was received by the licensee, and the unique alpha and/or numeric transaction identifier that distinguishes it from all other transactions in the licensee's records; (f) Full name, residence address, residence telephone number, date of birth and accurate description of the person from whom the item of the property was received, including: sex, height, weight, race, color of eyes and color of hair; (g) The identification number and state of issue from any of the following forms of identification of the seller or pledger: (i) current valid Minnesota driver's license; (ii) current valid Minnesota identification /0-/D 49 card; or (iii) current valid photo identification card issued by another state or a province of Canada, (h) The signature of the person identified in the transaction. Subd. 2. Photographic records. The licensee must also take a color photograph or color video recording which meets acceptable video standards as established by the public safety director or designee of: (a) Each customer involved in a billable transaction; and, (b) Every item pawned or sold that does not have a unique serial or identification number permanently engraved or affixed. If a photograph is taken, it must be at least two (2) inches in length by two (2) inches in width and must be maintained in such a manner that the photograph can be readily matched and correlated with all other records of the transaction to which they relate. Such photographs must be available to the public safety director, or the director's designee, upon request. The major portion of the photograph must include an identifiable front facial close-up of the person who pawned or sold the item. Items photographed must be accurately depicted. The licensee must inform the person that he or she is being photographed by displaying a sign of sufficient size in a conspicuous place in the premises. The licensee must keep the photographs on the premises 0 available for inspection for ninety (90) days. If a video photograph is taken, the video camera must zoom in on the person pawning or selling the item so as to include an identifiable close-up of that person's face. Items photographed by video must be accurately depicted. Video photographs must be electronically referenced by time and date so they can be readily matched and correlated with all other records of the transaction to which they relate. The licensee must inform the person that he or she is being videotaped by displaying a sign of sufficient size in a conspicuous place on the premises. The licensee must keep the exposed videotape on the premises available for inspection for ninety (90) days. Subd. 3. Digital images. Licensees may fulfill the color photograph requirements in subdivision 2 of this subsection by generating them as digital images, in a format specified by the public safety department, electronically cross-referenced to the reportable transaction the images are associated with. The licensee must keep the digital images on the premises available for inspection for ninety (90) days. Notwithstanding that digital images may be captured from video recordings, this provision does not alter or amend the requirements in subdivision 2 of this subsection. Subd. 4. Records for renewals. extensions and redemptions. For renewals, extensions and redemptions, the licensee shall provide the original transaction identifier, the date of the current transaction, and the type of transaction. ICS ? 1 ? Subd. 5. Inspection of records. The records must at all reasonable times be on the premises and available for inspection by the department of public safety. Data entries shall be retained for at least three (3) years from the date of transaction. Required photographs, video recordings, and digital images shall be retained a minimum of ninety (90) days. 1187.27. Daily reports to police. Subdivision 1. Modem reporting. Effective sixty (60) days from the date of notification by the public safety director or designee, licensees must submit every reportable transaction to the public safety department daily by -transferring it from their computer to the public safety department via modem. All required records must be transmitted completely and accurately after the close of business each day in accordance with standards and procedures established by the public safety department using a dial-callback protocol or other procedures that address security concerns of the licensees and the public safety department. Subd. 2. Electronic reporting problems. Licensees are required to report transactions by modem, except as otherwise allowed in this subdivision: (a) If a licensee is unable to successfully transfer the required reports by modem, the licensee must have on the premises and available for inspection by the public safety department printed copies of all reportable transactions that have not been reported by modem. (b) If the problem is determined to be in the licensee's system and is not corrected by the close of the first business day following the failure, the licensee must provide the required reports as detailed in section 1187.25, in a paper format approved by the director of public safety. (c) If a licensee is unable to capture, digitize or video record the photographs required in section 1187.25, the licensee must immediately take all required photographs with a still camera, immediately develop the pictures, cross-reference the photographs to the correct transaction. (d) If the problem is determined to be in the licensee's system, the licensee shall take all reasonable steps to include the replacement of system components such as modems and other computer hardware and software, in order to return the electronic reporting system to operational condition as soon as possible. (e) Failure to report transactions electronically for a period of seven (7) or more consecutive days, due to a problem in the licensee's system is constitutes grounds for license suspension or revocation. 1o-/a- Subd. 3. Signage required. The licensee must display a sign of sufficient size, in a conspicuous place in the premises, which informs all patrons that all transactions are reported to the public safety department daily. 1187.29. Billable transaction license fees. Subdivision 1. Required fees. Every licensee shall pay a billable transaction license fee for each billable transaction handled by the licensee. The amount of the fee is set by appendix D and reflects the cost of processing transactions and other related regulatory expenses. The city council will review and adjust the fee amount, if necessary, at least every twelve (12) months. Licensees shall be notified in writing at least thirty (30) days before any adjustment is implemented. Subd. 2. Fee classification. The billable transaction license fee is classified according to the medium by which daily reports are submitted to the public safety department. These classifications are: modem and manual, and the fee for each classification is set by appendix D. Licensees will be charged for billable transactions at the current rate for the medium by which the transactions reported to the public safety department. Subd. 3. Monthly payment. Billable transaction license fees shall be billed monthly and are due and payable within thirty (30) days. Failure to do so is a violation of this subsection. 1187.31. Receipt required. Subdivision 1. Requirement. Every licensee must provide a receipt to the party identified in every reportable transaction and must maintain a duplicate of that receipt for three (3) years. Subd. 2. Contents of receipt. The receipt must include at least the following information: (a) The name, address and telephone number of the licensed business; (b) The date and time the item was received by the licensee; (c) Whether the item was pawned or sold, or the nature of the transaction; (d) An accurate description of each item received including, but not limited to, any trademark, identification number, serial number, model number, brand name, or other identifying mark on such an item; (e) The signature or unique identifier of the licensee or employee that conducted the transaction; (f) The amount advanced or paid; (g) The monthly and annual interest rates, including all pawn fees and charges; (h) The last regular day of business by which the item must be redeemed by the pledger without risk that the item will be sold; (i) The amount necessary to redeem the pawned item on the maturity date; Q) The full name, residence address, residence telephone number, and date of birth of the pledger or seller; (k) The identification number and state or province of issue from any of the following forms of identification of the seller: (i) current valid Minnesota driver's license; (ii) current valid Minnesota identification card; or (iii) current valid photo driver's license or identification card issued by another state or a province of Canada. (1) Description of the pledger or seller including approximate height, weight, race, sex, color of eyes and color of hair; (m) The signature of the pledger or seller; (n) All printed statements as required by Minnesota Statute 325J.04 subdivision 2, or any other applicable statutes. 1187.33. Redemption period. Any person pledging, pawning or depositing an item for security must have a minimum of sixty (60) days from the date of that transaction to redeem the item before it may be forfeited and sold. During the sixty (60) day holding period, items may not be removed from the licensed location except as provided in section 1187.45. Licensees are prohibited from redeeming any item to anyone other than the person to whom the receipt was issued or, to any person identified in a written notarized authorization to redeem the property identified in the receipt, or to a person identified in writing by the pledger at the time of the initial transaction and signed by the pledger, or with approval of the Public Safety Director or their designee. Written authorization for release of property to persons other than original pledger must be maintained along with original transaction records in accordance with subsection 1187.25. 1187.35. Holding period. Any item purchased by a licensee must not be sold or otherwise transferred for thirty (30) days from the date of the transaction. An individual may redeem an item seventy-two (72) hours after the item was received on deposit, excluding Sundays and legal holidays. 1187.37. Police order to hold property. Subdivision 1. Investigative hold. Whenever a law enforcement official from any agency notifies a licensee not to sell an item, the item must not be sold or removed from the premises. The investigative hold shall be confirmed in writing by the originating agency within seventy-two (72) hours and will remain in effect for fifteen (15) days from the date of initial notification, or until the investigative order is canceled, or until an order to hold/confiscate is issued, pursuant to subsection 1187.31 (b) whichever comes first. Subd. 2. Order to hold. Whenever the public safety director, or the director's designee, notifies a licensee not to sell an item, the item must not be sold or removed from the licensed premises until authorized to be released by the director or the director's designee. The order to hold shall expire ninety (90) days from the date it is placed unless the public safety director or the director's designee determines the hold is still necessary and notifies the licensee in writing. 0 1 /D_4 Subd. 3. Order to confiscate. If an item is identified as stolen or evidence in a criminal case, the director or director's designee may: (a) Physically confiscate and remove it from the pawnshop, pursuant to a written order from the director or the director's designee, or (b) Place the item on hold or extend the hold as provided in subdivision 2 of this subsection and leave the item in the pawnshop. When an item is confiscated, the person doing so shall provide identification upon request of the licensee, and shall provide the licensee the name and phone number of the confiscating agency and investigator, and the case number related to the confiscation. Subd. 4. Release of order to hold/confiscate. When an order to hold/confiscate is no longer necessary, the director of public safety, or the director's designee shall so notify the licensee. 1187.39. Inspection of items. At all times during the terms of the license, the licensee must allow the public safety director or designee(s) to enter the premises where the licensed business is located, including all off-site storage facilities as authorized in section 1187.45 during normal business hours, except in an emergency, for the purpose of inspecting such premises and inspecting the items, ware and merchandise and records therein to verify compliance with this chapter or other applicable laws. 1187.41. Label required. Licensees must attach a label to every item at the time it is pawned, purchased or received in inventory from any reportable transaction. Permanently recorded on this label must be the number or name that identifies the transaction in the pawnshop's records, the transaction date, the name of the item and the description or the model and serial number of the item as reported to the public safety department, whichever is applicable, and the date the item is out of pawn or can be sold, if applicable. Labels shall not be re-used. 1187.43. Prohibited acts. The following acts are prohibited: (a) No person under the age of twenty-one (21) years may pawn or sell or attempt to pawn or sell goods with any licensee, nor may any licensee receive any goods from a person under the age of twenty-one (21) years. (b) No licensee may receive any goods from a person of unsound mind or an intoxicated person. (c) No licensee may receive any goods, unless the seller presents identification in the form of a current valid Minnesota driver's license or identification card, or a current valid photo drivers license or identification card issued by the state or province of residency of the person from whom the item was received. (d) No licensee may receive any item of property that possesses an altered or obliterated serial number or operation identification number or any item of property that has had its serial number removed. 1187.45. Business at only one place. A license under this section authorizes the licensee to carry on its business only at the permanent place of business designated in the license. However, upon written request, the public safety director or designee may approve an off-site locked and secured storage facility. The licensee shall permit inspection of the facility in accordance with section 1187.39. All provisions of this section regarding record keeping and reporting apply to the facility and its contents. Property shall be stored in compliance with all provisions of the city code. The licensee must either own the building in which the business is conducted, and any approved off- site storage facility, or have a lease on the business premises which extends for more than six (6) months. 1187.47. Separability. Should any subsection, subdivision, paragraph, clause or other provision of this section be declared by a court of competent jurisdiction to be invalid such decision shall not affect the validity of the ordinance as a whole or any part other than the part so declared invalid. Relation to other ordinances. This ordinance supersedes those provisions of section 1186 of the Richfield City Code that pertain to pawnbrokers. Sec. 2. This ordinance shall be effective as provided in Richfield City Code subsection 110.11. Adopted this 23rd day of March, 1998. Martin J. Kirsch, Mayor ATTEST: Thomas P. Ferber, City Clerk /C --i • CITY OF RICHFIELD RESOLUTION NO. RESOLUTION AUTHORIZING PUBLICATION OF BILL NO. BY TITLE AND SUMMARY WHEREAS, the City Council of the City of Richfield has adopted an ordinance, Bill No. , which adds a new Section 1187 to the Richfield City Code; and WHEREAS, Section 3.12 of the Richfield City Charter provides for the publication of ordinances by title and summary in certain circumstances. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, as follows: 1. The City Council hereby determines that publication of the complete text of Bill No. is not cost effective. 2. The City Council determines that the following summary would clearly inform the public of the intent and effect of the ordinance and hereby approves the same: 3. The City Clerk shall cause the following summary of Bill No. to be published in the official newspaper in lieu of the entire ordinance: Public Notice The City Council of the City of Richfield has adopted Bill No. , "AN ORDINANCE REGULATING PAWNBROKER ESTABLISHMENTS; REQUIRING A LICENSE; ESTABLISHING REPORTING REQUIREMENTS; AMENDING THE CITY CODE BY ADDING A NEW SECTION 1187; SUPERSEDING PAWNBROKER REGULATIONS IN SECTION 1186." The ordinance adds a new section 1187 to the Richfield City Code, which supersedes existing pawnbroker regulations found in section 1186. License Procedures The ordinance requires persons to obtain an annual license to engage in the business of pawnbroker, establishes licensing procedures, and provides for a license fee. The ordinance requires background investigations to be conducted regarding any pawnbroker business, manager or employee; establishes investigation fees; and requires a bond for all licensees. The ordinance makes certain persons ineligible for licenses and establishes grounds and procedures for licenses to be denied, suspended or revoked. Recordkeeping Regulations The ordinance requires pawnbroker businesses to maintain records of transactions and to keep photographic records or digital images of customers and certain pawned items. Pawnbrokers are required to report certain transactions daily to the public safety department by modem, subject to limited exceptions. Licensees must pay a fee for every transaction reported. Consumer Protection Regulations Pawnbrokers are required to provide detailed receipts to persons who pawn items. Persons pawning items must be given at least 60 days to redeem an item before the item may be forfeited and sold. The ordinance establishes a 30-day holding period for purchased items. Other Regulations The ordinance permits the public safety department to order property to be held pending investigation and to inspect records and pawned items. The ordinance prohibits persons under age 21 from pawning goods; prohibits licensees from receiving goods from intoxicated persons or those of unsound mind; requires identification to be presented by any person pawning goods; and prohibits licensees from accepting goods with altered, obliterated, or removed serial numbers. The full text of Bill No. is available at Richfield City Hall, 6700 Portland Avenue, Richfield, during regular business hours. Thomas P. Ferber, City Clerk 4. The City Clerk is directed to keep a copy of the ordinance at city hall for public inspection and to provide a copy to the Augsburg branch of the Hennepin County Public Library. Adopted this 23rd day of March, 1998. Martin J. Kirsch, Mayor ATTEST: 40 Thomas Ferber, City Clerk /0-19 0 AMENDMENT TO APPENDIX D • SECTION 8. COMMERCIAL BUSINESS AND TRADE LICENSES AND PERMITS TYPE OF SECTION DESCRIPTION FEE PERMIT OR REQUIRING LICENSE (17) Pawnbroker 1187 (a) Pawnbroker 1 year $2.500.00 (b) Owner 1 year $1,500 investigation fee (nonrefundable) (c) Manager 1 year $500.00 investigation fee (nonrefundable) (d) Employee 1 year $50 per investigation employee fee (nonrefundable) (e) Transaction $1.50 per fee transaction to CITY OF RICHFIELD, MINNESOTA Council Letter No. 70 Agenda March 23, 1998 Issue Statement: Public hearing regarding approval of layout for 66th Street between Lynwood Boulevard and Humboldt Avenue as part of the 1-35W Project to extend the High Occupancy Vehicle Lane. Background: Council approved the layout for the mainlines of 1-35W on March 24, 1997. However, the details of improvements needed at the 66th Street interchange were not addressed at that time. The 1-35W plan calls for the reconstruction of the 1-35W bridge over 66th Street. Council discussed the 66th Street design issues at its Study Session on February 2, 1998. A map is attached showing the proposed layout. Council is being asked by the Minnesota Department of Transportation (MnDOT) to approve the proposed layout of the 66th Street interchange so that design work may proceed and construction of the project can begin early next year. The project to extend High Occupancy Vehicles on 1-35W will cost an estimated $75 million. An Aesthetic Design Review Committee, including representatives of Richfield, is • responsible for evaluating the appearance of the project's design. Issues of the project's appearance will be submitted for Council approval at a later date. City and County staff are recommending widening 66th Street which will produce the following impacts: • alignment shift to the south; • drop in elevation; • extension of left turn lanes; • transit stop, bikeways and sidewalks; • alley modifications; • right of way acquisition; and, • construction staging. Design Issues: Alignment shift to the south - Sixty-sixth Street must be shifted to the south to accommodate the street widening. The southbound exit ramp is too short and too steep to shift 66th Street to the north. Also, a shift to the north would require changes in the design of the 62 Crosstown Highway that exceed the boundaries of the approved project layout for 1-35W. Elevation - Sixty-sixth Street must be lowered about 2.8 feet for several reasons. The profile of the freeway needs to be changed to correct a substandard vertical curve to 10 provide safe stopping sight distances. 1-35W will be raised 1.3 feet, as high as possible without requiring additional right of way. A thicker beam is needed to support the 9-I proposed two-span bridge over 66th Street, currently it's a three-span bridge. The clearance for trucks passing under the 1-35W bridge is only 15.3' now, and should be 16.3' as proposed. Left-tum lanes - The proposed layout provides for a protected left turn lane for motorists desiring to enter the freeway. Currently, only a short left-turn lane is provided in each direction that causes left turning vehicles to block one of the through lanes on 66th Street. A proposed 300' long left turn storage lane will reduce the chance of left turning vehicles from blocking through lanes during rush hour periods. A transit stop, bikeways and sidewalks are included in the proposed design of 66th Street in the vicinity of 1-35W to correct existing deficiencies. Transit service operating on 66th Street will connect to express bus service using 1-35W. The location of bus pullouts and bus shelters has not been finalized awaiting further analysis of traffic operations. Bicyclists will ride on widened shoulders and sidewalks will be widened to improve safety for pedestrians. Alley Modifications - City staff is recommending relocating an alley in the northwest corner of the interchange to redirect its access to Girard Avenue and remove its current access to 66th Street. This will require acquiring one duplex. This is recommended as a safety improvement and a potential location for a bus shelter and bus pullout. 0 However, Council can choose as an option to not relocate the alley and avoid the acquisition of the duplex. There is an existing alley on the west side of the 6600 block of Emerson Avenue that is used by several property owners to store vehicles. However, all parcels are served by driveways off of Emerson Avenue. City staff is recommending that owner ship of the alley be clarified based on public comments received and a meeting with affected property owners be held before a decision is made about relocating or vacating the alley. Right of Way: The proposed layout will require the total acquisition of three parcels: 1314-1316-66th Street (duplex); 1315-1317-66th Street (duplex); and, 6600 Emerson Avenue (single- family home being used as a group home). Six partial acquisitions are likely as part of the proposed layout. They are: 1415 West 66th Street (single-family home); 6600-04 Girard Avenue (duplex); 6601 Emerson Avenue (single-family home); 6606 and 6609 Girard Avenue (two single-family homes); and, 1107-09 West 66th Street (duplex). Construction Staging: The proposed layout will realign 66th Street to the south and a bridge pier will be built in what is now the eastbound left turn lane. This pier will reduce the number of lanes on 66th Street to one through lane in each direction during construction. MnDOT staff will explore removing a sidewalk from the south side of the street to maintain a left turn lane in the eastbound direction. The 66th Street ramps to and from 1-35W will be closed 9-a intermittently during construction. Also, new underground utilities will have to be installed under 66th Street that will cause serious disruption to traffic. Construction will last for approximately 18 months. Details of staging have not been finalized. Citizen Involvement Process: A letter was sent to 3,000 residents and businesses from Nicollet Avenue to Penn Avenue notifying them of a public information meeting that was held on February 26, 1998. Approximately 150 people attended the meeting. Their written comments are attached for Council review. City staff also visited with most residents of properties affected by possible right of way acquisition. Notices of the meeting were also placed in the Sun Current Newspaper, the City Web Site and on Cable TV. Project Schedule: The following schedule is proposed for Council consideration: Action Date • Council Decision on Proposed Layout March 23, 1998 • Right of Way Acquisition Fall 1998 • Construction Spring 1999 to Fall 2000 Recommended Motion: . Conduct the public hearing and approve the attached resolution related to the proposed layout for 66th Street between Lynwood Boulevard and Humboldt Avenue as part of the extension of High Occupancy Vehicle land on 1-35W from 1-494 to 42nd Street in Minneapolis, Minnesota. Basis of Recommendation: 1. Details of improvements needed at the 66th Street interchange were not addressed at the time of the 1-35W layout approval. 2. The proposed layout addresses the issues raised by Council in its March 24, 1997 approval of the layout for the project to extend the High Occupancy Vehicle Lane on 1-35W. 3. The community has been given an opportunity to express their views on proposed improvements along 66th Street. Alternative Recommendations: 1. Continue the public hearing until additional information is obtained to address issues of the location of bus pullouts and bus shelters, and any issues raised by residents. The proposed layout will not change significantly due to alternative locations being considered for bus pullouts and bus shelters that will cause a delay in completing the design work for 1-35W. 9-3 2. Rebuild the 1-35W bridge without changing the existing design. This avoids the acquisition of any right of way and the disruption during construction caused by realigning the road. However, the existing design of 66th Street is deficient in providing adequate storage for left turning vehicles and this causes through traffic to use only one lane during peak traffic periods. The existing design does not provide for safe movement of pedestrians, bicyclists and for transit riders. Consequently, City staff does not recommend rebuilding the interchange using the current design. 3. The home at 1314-1316 West 66th Street is proposed for total acquisition to relocate the alley east of Girard Avenue that currently fronts onto 66th Street. It is also a possible alternative site for a bus pullout and bus shelter. The alley poses a safety issue because it is adjacent to the southbound exit ramp of I-35W. Council may choose to leave the alley in place. The result would be a partial acquisition of the property along 66th Street but the home would remain. Discussion/Decision Mode: A decision by Council on the proposed layout is needed within one month to keep the project on schedule for construction next spring. Council approval of the proposed layout for 66th Street is required before the Minnesota Department of Transportation can complete the final design for the 1-35W Project. Respectfully submitted, Jam . Prosser City Manager JDP:ds Attachments 0 RESOLUTION NO. q,q is RESOLUTION APPROVING THE LAYOUT FOR 66TH STREET BETWEEN LYNWOOD BOULEVARD AND HUMBOLDT AVENUE AS PART OF THE EXTENSION OF HIGH OCCUPANCY VEHICLE LANE ON 1-36W FROM 1-494 TO 42ND STREET IN MINNEAPOLIS, MINNESOTA WHEREAS, the Commissioner of the Department of Transportation has prepared a preliminary layout for the improvement of a part of 66th Street between Lynwood Boulevard and Humboldt Avenue as part of Highway Number 394 renumbered as Trunk Highway No. 35W within the corporate limits of the City of Richfield, from the junction of 1- 494 to the east junction of Trunk Highway No. 62; and seeks the approval thereof; and WHEREAS, said preliminary; layout for 66th Street is on file in the Office of the Minnesota Department of Transportation, St. Paul, Minnesota, being marked, labeled, and identified as Layout No. 1, dated February 1998. NOW, THEREFORE, BE IT RESOLVED that said preliminary layout for the improvement of 66th Street as part of said Trunk Highway within the corporate limits be and hereby are approved by the City Council of the City of Richfield subject to the following conditions that: 1. The Aesthetic Design Review Committee still be given the opportunity to review the aesthetic design elements of the proposed 66th Street project including lighting, bus shelters, bridge design, landscaping and noise walls. 2. The location of bus pullouts and bus shelters must await a traffic analysis of operational characteristics to be resolved to the City's satisfaction. 3. The administration of all land acquisition and relocation of parcels identified for acquisition should be delegated to the City to improve the City's ability to coordinate the relocation of residents with the City's other housing programs. 4. City staff should clarify ownership of an alley serving the 6600 block of Emerson Avenue and hold a meeting with affected property owners before Council decides on vacating or relocating the alley access. 5. The design must take into account drainage problems identified by residents at the intersection of Humboldt Avenue and 66th Street. Adopted by the City Council of the City of Richfield, Minnesota this 23rd day of March, 1998. Martin J. Kirsch, Mayor ATTEST: Thomas P. Ferber, City Clerk 0 0 • u I 1 I 1 I i I I e-s-z I znt 1 1 ? r_J I I ! I _ I ?I 11 11 II 15 I I i b99 I I I 1 II II z I pI I rst MSS-I.TS rst •e•s ".4 II ?-$-t YY59 Y N ?pp N , 1 6°g9 I r ! I s I c I r.- I _ I J?_? I I 1 1 I i_s_t I T099 ?I I I 3AV NOS83" 3 VI i I 1 I I ? 1 r I ! a I r r r I r 1 r I r I ! I r i r I ? v GUMS 15-S-I Y099 0099 I I 1 I - j-S-t i I I U 5659 r •3AV moewnN o ? [? S 0099 <o ?o W W F-- N S co F-t0 m Q0 N, 0 N W N H o ^ 1.L O a IZ 9-S 9-6 Comments Received at the Public Meeting on Proposed Widening of 66th Street between Lynwood Boulevard and Humboldt Avenue as part of the 1-36W Reconstruction Project Thursday, February 26, 1998 Wood Lake Nature Center 735 Lake Shore Drive, Richfield, MN • • NAME COMMENT Kelly Artz The widening design looks great. I would love to see bus shelters 1512 W. 66th Street match bridge design. Don't install ugly glass huts next to nice new 798-0631/941-8950 bridge! Consider re-paving 66th all the way to Penn or just fix my driveway! R. Mattern At present time when it rains, it floods on 66th from Humboldt to 6532 Girard Avenue 35W. If street is lowered two feet, adequate water drainage will be 869-9393 needed. Accident rate on west ramp is high because people make right turns on red when it says "No Turn on Red," and someone is coming out of the alley. Steve Klug Make a bike path extend to Lakewood Drive. 6608 Lynwood Blvd. 861-3035 Kim Hill Would a possible option to the Girard Avenue alley be to not have it 6529 Girard Avenue go through but rather cut it off and put a turnaround at the 66th 861-5714/348-9024 Street end? Most residents do not go out the south side and I do not believe that would change. J. C. Hardy Put in STOP signs so we can get onto 66th Street. It's too crowded 6513 Humboldt now. Avenue 869-1930 Lenny Schultz Place a STOP sign at Humboldt to let all the residents north of 66th 6510 Humboldt Street out onto 66th Street and also those south of 66th Street. 869-1105 Bonnie Kittell Would it be possible to put a light at Humboldt and 66th? Left 6630 Logan Avenue turning traffic off 66th during rush hour is a problem. 869-3826 Judi Simons I agree this area needs to be improved. I don't have strong feelings 6532 Third Avenue about which design is chosen. I do, however, have strong feelings 861-7473 about where the water drainage grates are placed. Be sure they are at the lowest point of the roadways and corners. Why is it that most often they are not!? Judi Simons I have to take this opportunity to comment on the Crosstown/35W 6532 Third Avenue Project especially after reading today's Mpls. Star Tribune. 861-7473 Specifically traveling east on Crosstown to go north on 35W... you must be crazy to think the public will go along with your plan to still provide only one lane for this purpose. Don't waste money on this project if you aren't changing that aspect of the Crosstown Commons! • 0 • q, r) John Gamoke Thank you for the informative hearing! The information is very clear! 6645 Humboldt Thank you for advertising the hearing so well! 869-5291 Kristine Hawkinson Express bus access on 66th Street for downtown commuters!!! 1112 West 66th 861-3928 Richard E. Evans I am not happy to have a median blocking access to my home on 6624 Girard Avenue Girard. I am also not happy seeing part of people's property taken 866-9609 and then left with less. It lowers the value of the property and makes it more difficult to sell. Steve Kirchner When making the sidewalks under the bridge I would encourage the Richfield Bank City to NOT separate them by a separate wall. Leave it wide open 798-3342 so you don't create security concerns. If you create a wall, we need to put lights under the bridge. Doris Rubenstein NO parking lots on acquired properties on 66th Street. What a way 6515 Emerson to say "Welcome to Richfield" than an ugly parking lot!! 861-7429/624-4716 Bill and Jeri Scott 1. Noise during construction of bridge (or buy our property too). 6608 Emerson 2. Condition of our home after bridge construction. Avenue 3. Landscaping of corner next to our home. 861-2182/866-0713 4. Put us in a short term apartment during bridge construction. 5. Would like to be in on the design choice for corner. Barbara Uphoff I think it is INSANE to not put in two lanes from east 62 to 35M 6540 Emerson Don't bother doing it if you don't change it!!! Whatever happened to Avenue a possible transit station? Will an additional bus stop at 66th and 869-0947 35W require more space? Kenneth D. Snider I would like to see the house at the corner of 66th Street and Girard 6537 Girard Avenue Avenue removed and the alley to come out to Girard on the south 895-9595/937-8496 side of property 6537-6539. It would make the intersection safer and more practicable. The house at 6537-6539 Girard Avenue is the duplex I am buying. I am previously living at 7744 Carnelian Lane, Eden Prairie, MN 55346, 937-8496. Please call me at your convenience on any questions you may have. Charles S. Dean II 1 think this is a very good idea. We need a wider sidewalk and four 1012 West 66th lane roads. 866-2344/288-1007-P Bill Scott 1. Concern about parking on street for bus stop. 6608 Emerson 2. Would like to be present at meeting for buffer zone on 66th St. 861-2182/866-0713 and Emerson. 3. Access to alley behind property. Steve Quam I'd be very interested in seeing the aesthetic design proposed before 6421 James Avenue approval. This is a very big element in the structural environment of 861.2026/861-2601 the community so please stress appearance. Also, if you can make it possible to see the metered ramp south on 35W from eastbound 66th, you can help drivers choose whether to go on a congested freeway. C7 0 9-8 Tracey Dixon The most important part of this project to me is how the bridge will 6638 Morgan Avenue look. It would be nice to have some plantings like those at 932-9582/798-1631 Centennial Lakes if they do not obstruct the view. A nice "Welcome to Richfield" sign would be good as you exit 35W. Lawrence Wozniczka Wider sidewalks and commuter bicycle lane additions are 6744 Wentworth improvements. (Thanks!) Crossing exit and entry ramps will be 869-1236 difficult for pedestrians. Can we consider a separate crossing of 35W (perhaps an underpass in area of 68th Street) to enable linking neighborhoods and reducing residents need to cross 35W at 66th Street. Perhaps this would be a future project. Darrell Pipo My concern is about the noise levels and sound barriers that will be 6620 Emerson installed to improve this problem. The existing wall is not high Avenue enough to take care of this problem. I can see the tops of trucks 861-3248 going by through my kitchen window Daryl Ship My concerns are that of the noise levels from 135W. On Lynwood it 6629 Lynwood Blvd. is actually louder than on Emerson because I believe that the wall is 881-2224/869-7912 not high enough to handle the noise levels. Judith Staker While I understand the need to widen 66th Street at the 35W 7308 Logan Avenue interchange when doing the 35W162 reconstruction project, I am 861-7344 very concerned about two things: (1) the safety of pedestrians and bicyclists at the intersection and (2) the speed of traffic along 66th Street. I do not wish to see 66th Street become a major thoroughfare. Reducing the speed limit to 25 mph would at least keep drivers under 35 mph. By making the interchange wider and longer, it will be even more difficult for pedestrians and bicyclists to cross 35W. Drivers currently do not respect the intersection or the "No Turn On Red" signs. They almost always encroach over the current pedestrian and sidewalk route and frequently turn on and off the ramps in front of pedestrians and bicyclists. Making more concrete for cars to drive on will only encourage the "car first-right of way" attitude. Any design should: keep cars and people separated; have wide crosswalks with long walk lights; enforce "No Turn On Red" at the ramps and have more signs to this effect. Thanks for hard work on planning. Buffers seem to look nice. The least amount of road widening is preferable. Remember, Richfield is a small community. I hope 35W doesn't continue to divide it. 0 S CITY OF RICHFIELD, MINNESOTA Council Letter No. 69 Agenda March 23, 1998 Issue Statement: Public hearing and consideration of resolution amending the 1998 Capital Improvement Budget. Background: During the fall of 1997, the Capital Improvement Budget (CIB) was adopted as part of the 1997 Revised and Adopted Budget. Since the adoption of the budget, a number of . projects have come to the attention of the City which merit consideration for inclusion into the 1998 CIB. In order to give City Council consideration to these proposed projects, a public hearing has been scheduled to briefly describe the projects and receive public comment. A copy of the current 1998 CIB is attached to this Council Letter. In addition to the projects included in the 1998 CIB the following projects should also be considered: Project Second Indoor Ice Sheet (Veterans Park) Bond Expansion of City Hall Parking Lot Fund 1-494 Integrated Corridor Traffic Mgmt. 66th Street Reconstruction at 1-35W Traffic Signal @ 77th St. (Shops At Lyndale) 69th & Penn Avenue Stormwater Improvements Second Indoor Ice Sheet Proiect Expenditure Source $2,700,000 Rev. Bond 212,000 General 25,000 MSA 600,000 MSA/Federal 135,000 MSA 300,000 User Fees This project was brought to the attention of the City Council and staff by a group of interested citizens who strongly felt there was a need for an additional sheet to meet the growing demands of all ice skating related activities, especially with the introduction of girls' hockey programs. The current single sheet cannot meet the demands for ice time in the community with two high school girls' and boys' hockey programs, a youth hockey program and other ice related needs. Expansion of City Hall Parking Lot This project includes the acquisition of the property at 6734 Portland Avenue and the construction costs to incorporate this property into the parking lot at City Hall. 1-494 Integrated Traffic Mgmt. System This proposal will provide the City with two video hook-ups to the MnDOT Traffic Management Center to allow staff to visually monitor the 1-494 corridor. 66th Street Improvements at 1-35W As part of the widening of 1-35W by MnDOT, the bridge over 66th Street will be replaced. This project will acquire two or three residences and parts of other parcels to 9-1 widen 66th to provide wider sidewalks and shoulders, bus pullouts under the bridge and longer left turn lanes under the bridge. Traffic Signal on 77th Street at Shops at Lyndale This proposal is to install a traffic signal at the entrance to the Shops at Lyndale on 77th Street. 69th & Penn Avenue Stormwater Improvements This project involves the acquisition of two residences to provide flood protection for the Penn Avenue area between 69th and 70th Streets. It would also provide a stormwater storage area for the 70th and Russell Avenue project, which is planned for the following year. Recommended Motion: Conduct a public hearing and adopt a resolution adjusting the 1998 CIB by adding the projects selected by the City Council. Basis of Recommendation: 1. The projects listed in this letter are those which should be considered for 1998. As such, the projects should be added to the 1998 CIB. 2. Placing the projects in the 1998 CIB does not authorize the project. Instead, it includes the project in the current year capital budget. Separate City Council action is needed to proceed with each project. 3. The public hearing notice has been published and posted. Alternate Recommendation: 1. Action on this matter could be postponed to a future date. 2. The City Council could select any or all of the projects listed here for inclusion in the 1998 CIB. 3. The City Council could decide not to add any of these projects to the 1998 CIB. However, in the case of at least one project, the parking lot enlargement at City Hall, the City Council acted in 1997 to authorize this action. Discussion/Decision Mode: If the City Council wants to proceed with projects such as the second ice sheet at this time, it would be necessary to amend the 1998 CIB as soon as possible. Respectf Ily submitted, James . Prosser City Ma ager JDP:ds 5-a CITY OF RICHFIELD, MINNESOTA RESOLUTION NO. RESOLUTION AMENDING THE 1998 CAPITAL IMPROVEMENT BUDGET WHEREAS, the City Council approved a 1998 Capital Improvement Budget in December 1997 as part of the 1998 budget process; and WHEREAS, a number of projects which merit consideration in 1998 have come to the attention of the City staff; and WHEREAS, the City Council held a public hearing to consider the additional projects; and WHEREAS, the City Council determined that certain additional projects should be included in the 1998 Capital Improvement Budget. NOW, THEREFORE, BE IT RESOLVED that the following projects with the accompanying estimated casts be added to the 1998 Capital Improvement Budget. Project Project Expenditure Source Second Indoor Ice Sheet (Veterans Park) Bond $2,700,000 Rev. Bond Expansion of City Hall Parking Lot Fund 212,000 General 1-494 Integrated Corridor Traffic Mgmt. 25,000 MSA 66th Street Reconstruction at 1-35W 600,000 MSA/Federal Traffic Signal @ 77th St. (Shops At Lyndale) 135,000 MSA 69th & Penn Avenue Stormwater Improvements 300,000 User Fees Adopted by the City Council of the City of Richfield, Minnesota this 23rd day of March, 1998. Martin J. Kirsch, Mayor ATTEST: Thomas P. Ferber, City Clerk 0 • CITY OF RICHFIELD, MINNESOTA C6uncil Letter No. 68 Agenda March 23, 1998 Issue Statement: Public hearing regarding second indoor ice sheet request and selection of architect to prepare plans and specification for advertisement for bids for construction. Background: At the January 26, 1998 regular City Council meeting a group of interested citizens (the ICE Group) asked that the City explore the idea of constructing a second indoor ice sheet at the ice arena at Veterans Memorial Park of Richfield. The City Council listened to the request and asked staff to prepare a feasibility study on the matter of the second ice sheet. Staff has worked with the Cluts, O'Brien, Strother Architects and Delano Erickson Architects to prepare concept drawings, project cost estimates and estimated construction schedules for the construction of a second ice sheet. In addition, the City also asked Mark Ruff of Ehlers and Associates to prepare background information regarding the financing alternatives involved, potential debt service schedules, revenues and operating cost information. Information regarding the revenues and • operating costs was provided to Ehlers and Associates by City staff. In addition to that information, Mr. Ruff has worked on a number of financial feasibility studies for other metropolitan ice arena projects and has a solid knowledge of the subject matter. The information from the architect and Ehlers and Associates was presented and discussed with the City Council at the special March 16 Study Session. The information was also presented to the Community Services Commission on March 12, 1998 at a Special meeting. If the City is to proceed with this project on a schedule to attempt to provide an additional ice sheet which could be usable in January 1999, action should be taken by the City Council on March 23 to authorize the selection of an architect to begin work on the plans and specifications. In arriving at a decision on this matter several issues must be considered. Each issue identified in this Council Letter is presented in some detail for Council analysis. Need for More Ice The arena hosts a Youth Hockey program for boys and girls ages four to fifteen. The youth program is the largest single consumer of ice time, purchasing about 720 hours annually. The arena also provides open skating, Adult Hockey League programs and • host various skating clinics ?-,l • Currently, two high schools, Richfield High School and The Academy of the Holy Angels, use the Ice Arena for their hockey programs. Both schools have Girls and Boys Varsity programs, as well as Boys Junior Varsity. In addition, Richfield High School will add a Junior Varsity Girls program during the next hockey season and Holy Angels is expected to add a Girls Junior Varsity and a Bantam team the following season. The Ice Arena currently cannot provide all of the ice hours needed by the users of the arena. With the addition of a Girls Junior Varsity team for the upcoming season beginning in 1998, the shortage of ice hours will become more critical. During the 1998-99 season, 27 teams will need to use the hockey arena (that includes the Hockey Association and the high schools). For the following season, 1999-2000, 29 teams will be requesting use of ice time at the Richfield facility. Thus, it's apparent that there is a need for more ice time at the Richfield facility. Consequences of Not Providing More Ice There are several potential consequences or issues to be considered which would be associated with the decision to not provide an additional sheet of ice. There is a direct responsibility for the schools to provide gender equity in athletic programs which, of course, would include girls' and boys' varsity and junior varsity hockey. That also • provides an indirect impact on the current Ice Arena as the City works with all of the groups to balance the requests of all of the organizations in light of their legal responsibility to provide gender equity. Obviously, the more demand on one ice sheet, the more difficult it will be to satisfy all of the needs presented to the arena for ice. Another direct effect of not providing a second sheet of ice is that it is almost certain that either some group or a portion of every group's hours will likely be displaced from the Richfield Ice Arena. That is because of the demand versus the availability of prime ice time. To that end, there will be an immediate need if there is no second ice sheet to adopt a policy which would govern how and what priority order the request for ice time would be granted or conversely, denied. Whichever group is left out of the Richfield Ice Arena because of the shortage of ice time may find it very difficult to buy or schedule ice anywhere in the near vicinity because of demand and the short notice for buying such ice time. Project Costs As the feasibility study concluded, the project that was conceptionalized by the ICE Group and by the project architect was one that basically met the needs of most users of the facility but was projected to be a total cost of about $2.7 million. The estimated cost of the $2.7 million project does not include dedicated locker rooms for the high schools. Those locker rooms could cost anywhere between $325,000 and $400,000. It is staff's recommendation that if such locker rooms were to be added to the project that 40 the high schools provide either the up-front funding or the debt service payment stream to pay for the locker rooms. q_d, With the $2.7 million cost and the accompanying financing necessary to fund the project, another consideration would be to scale the project back. There are a number of possibilities that could be used. One option would be to locate the building as designed to the north of the current ice arena rather than to the east. The savings would be approximately $250,000. The north location provides some advantages to linking up with the existing mechanical system. However, there is a disadvantage in terms of the flow of the public through the building and of the ability of staff to monitor the two ice sheets. Another option is the use of a pre-engineered steel building were used in place of the concrete structure, the savings would be approximate $650,000. That, however, would require a variance as the City Ordinance does not allow such metal buildings. - Another major consideration in downsizing the project might be the use of an air supported bubble which would reduce the cost by approximately $950,000. It is the architect's advice that the air supported bubble would have a useful life of 10 to 15 years and utility costs would increase due to inflating the bubble. Some other smaller reductions might be the use of a pre-engineered metal roof which would save about $100,000. Reducing the building size by approximately 2,000 square feet would save approximately $100,000 and the use of a sand rink floor rather than the better concrete floor would save approximately $80,000. In considering some of the potential cost reductions, the building appearance and community standards of what would be expected of a public park recreation facility should also be considered. It should also be noted that depending upon the down- grading of the facility, certain down-grades would have an impact on projected revenues. For example, it is unlikely that tournaments such as Team Minnesota, which would be a sizable tournament in the spring-summer time of the year, would be interested in using the facility for such a tournament with a bubble ice sheet. It is impossible to accurately predict exactly what types of revenue reductions would be seen by each major downgrade of the building. However, it is likely that while the metal building would not have the same appearance quality as the masonry building depicted in the concept drawing, it would still be likely to draw tournament events. Financial Issues The public finance firm of Ehlers and Associates identified a number of potential financing sources for a second ice sheet if it were to be approved (see attached report). The source of funding would undoubtedly end up being a bond issue under one of the four scenarios identified by Ehlers. Assuming a twenty-year debt service schedule, it is likely that the annual debt service payments could be approximately $282,000 a year. Thus, the important comparison is how close do anticipated revenues and expenditures associated with the second rink come to meeting the debt service obligations. A conservative estimation of hours rented for the second sheet was prepared by staff. That estimate included rental of approximately 1925 additional hours per year. The Ehlers report incorporates the data provided by staff and also provides a less optimistic estimate of additional hours sold somewhere in the range of 1500 hours per year. Using those two numbers, Ehlers prepared a comparison of revenues and expenditures versus debt service. Under the more optimistic assumption of 1925 additional hours per year, the analysis reveals approximately a $150,000 annual shortfall while under the less optimistic assumption, the deficit at roughly $196,00 per year. If those figures were to hold true, the shortfall or annual deficit would have to be made up with other funds. Those funds would have to be identified at a future date by the City Council. However, it should be noted that one limiting factor in making up those ___deficits is the current restrictions under levy limits which under certain bond scenarios would preclude any additional tax levies for the deficit over and above the levy limits set for the City of Richfield. The ICE Group contends that the estimates of additional hours sold are far too conservative and that other groups could be brought into the arena to take hours other than those identified by staff or the Ehlers report. Furthermore, there are other revenues which were not considered in the Ehlers estimate. For example, there may be additional revenue to be gained from providing advertisements on the dasherboards in the main arena. There may also be more revenues provided through a revamped and more aggressive concessions program, similar to what has been used in other communities such as Bloomington. Obviously, if there were other revenues to be gained through such sources and additional hours sold, coupled with a reduced project cost, the annual deficit projection could be significantly reduced. Another potential option that will be pursued if the project is approved is a Mighty Ducks grant. In the past, Might Ducks grants have been available for second ice sheets in an amount up to $250,000. As of this writing, it is uncertain whether money for the Mighty Ducks program will be appropriated for another cycle. In any event, applications for any Mighty Ducks money provided would not be until the end of May 1998. So, at this time it is difficult to say whether or not the City would be in a position to obtain the $250,000. Site Locations One major issue with siting the additional ice sheet is location. The current concept plan would provide for the new ice sheet to be located to the southeast of the current Ice Arena. That plan has been submitted to the DNR and has been approved by them. Moreover, it is the City's intention to restore any pathways that are disturbed in the park area by placement of the second ice sheet, whether it would ultimately end up to the east or to the north of the present Ice Arena site. Community Services Commission The Community Services Commission has heard a number of presentations concerning the second ice sheet proposal. At its regular meeting in February, the Commission indicated that it recognized a need for additional ice time and requested a feasibility study. A feasibility report was presented to the Community Services Commission on ,-)-v March 12. At its March 17 meeting, the Commission voted not to recommend either for or against the project, but instead recommended that a series of two or three community meetings be scheduled throughout the community as soon as possible to obtain public input concerning the proposed second ice sheet. This is a recommendation they have forwarded to the City Council. Selection of Architect City staff invited proposals and interviews from four architectural firms: Bonestroo, Rosene, Anderlik & Associates; Ankeny Kell Architects, P.A.; Delano Erickson Architects and RSP Architects, Ltd. These four architectural firms are well know and noted for their work on municipal projects, especially ice arenas. The interviews, including fee proposals, were conducted and analyzed. Based on that analysis, it is staff's recommendation that if the City Council decides to proceed with the construction of a second ice sheet, that the design team of Delano Erickson Architects be selected to provide architectural services in conjunction with the second ice sheet. Delano Erickson Architects, under the leadership of Del Erickson, has proposed to provide this service for a fee ranging from 5.8 to 6.5% of project costs, depending upon the scope of the project. In addition, the proposal also provides a staged fee for service which would allow the City to proceed with the architectural work one section at a time, beginning with the schematic design and followed by design development and bid • documents. If the City authorizes staff to engage Del Erickson's firm and proceed with the work on the ice arena, Mr. Erickson is very familiar with the project since he prepared the feasibility report and, in essence, already has a piece of the work completed. Recommended Motion: 1. Conduct a public hearing regarding the construction of a second ice sheet. 2. If the City Council decides to proceed with the project at this time, a motion should be made to select Delano Erickson Architects as the architect for the second ice sheet and to direct the City Manager and Mayor to execute a contract for services upon the following conditions: a) Project fees shall range between 5.8% - 6.5% of total project cost depending upon the scope of the project (excluding civil engineering services, if needed.) b) Services and Fees will be phased in accordance with the following: • Schematic Design - 20% = 1.2% (credit for study - .20%) • Design Development - 15% =.9% • Contract Documents - 35% = 2.1 % • Bidding - 5% =.3% • Construction Administration - 25% = 1.5% c) Final form of contract is approved by the City Manager and City Attorney. 1-5 0 Basis of Recommendation: 1. The feasibility data has been compiled and presented. 2. The DNR has provided a letter indicating that the addition of a second ice sheet in Veterans Memorial Park of Richfield would be allowable, provided that the portion of trails that would be disturbed would be rerouted and repaired. 3. In order to proceed in a timely fashion for potential construction in 1998, official City Council action to amend the 1998 Capital Improvement Budget and hire an architect to prepare plans, specifications and advertisements for bids would need to be considered by the City Council on March 23, 1998. 4. A public hearing to amend the 1998 Capital Improvement Budget has been published and scheduled for March 23, 1998. 5. Although it is not required, a public hearing has been noticed and scheduled for March 23, 1998 to consider the selection of an architect for the second ice sheet project. 6. Architectural proposals have been received and firms interviewed. Alternative Recommendation: 1. The City Council could postpone this discussion to a future date. 2. The City Council could request additional information or public input. Discussion/Decision Mode: If the City intends to proceed with the construction of this project in 1998 for use during any portion of the 1998-99 hockey season, official Council.action would likely be necessary in March to initiate the project in a timely manner. Respectfully submitted, Jam D. Prosser City Manager JDP:cak E Ehlers & Associates, Inc. LEADERS IN PUBLIC FINANCE March 13, 1998 Mr. James Prosser City Manager City of Richfield 6800 Portland Avenue South Richfield, MN 55423 Dear Jim: "?_6 As requested, our firm has prepared a brief outline of the financing options available for the construction of a second sheet of ice adjacent to the City's existing ice arena. We have also begun to outline the potential revenues and expenses for the facility upon completion, based upon City staff projections. The three options for financing the arena, based upon discussions with the City's bond counsel, Kennedy & Graven, include general obligation bonds (voted bonds or tax increment bonds), lease revenue bonds issued by the HRA, and gross revenue recreational facility bonds. A brief description of each is listed below: Voted General Obligation Bonds The City can issue a general obligation bond to finance the arena after holding a referendum on the issue. Usually the ballot assumes that the entire debt service will be paid by the property taxes, even though in reality some of the debt service may be paid by arena revenues. The main issue to consider in a voted G.O. bond is that debt service spread upon the property tax base will be calculated according to market value rather than • tax capacity. This means that a $100,000 house will pay the same amount of taxes as a $100,000 commercial property. Most property taxes are based upon tax capacity, which includes a higher ratio of taxes per dollar of market value for commercial and rental property. The interest rates on general obligation bonds are usually lower due to the full faith and credit of the taxpayers behind the issue and the City's current bond rating from Moody's, which is a "AaY for general obligation debt. G.O. Tax Increment Bonds The City could issue G.O. Tax Increment Bonds to construct the new sheet of ice if at least 20% of the debt service were paid with tax increment. The remaining 80% of the debt service could be paid with other revenues or property taxes, which would be spread on the basis of tax capacity in this case. Lease Revenue Bonds Cities and counties often issue lease revenue bonds for public facilities. Under this transaction, a HRA or EDA can issue bonds to construct and own a municipal facility and then lease it to the City. The City makes annual appropriations for lease payments to the HRA or EDA, but is not bound to continue lease payments in future years. The City is usually able to purchase the facility at the end of the term of the lease for $1. Under current Department of Revenue interpretation, the City's lease payments would not be subject to levy limits because they are pledged to another governmental body. Other key factors of a lease revenue bond are: ? Lease revenue bonds issued in excess of $1,000,000 count against the city's net debt limit (currently the available limit is $24,500,000) ? Lease revenue bonds carry a .25% to .75% higher interest rate than G.O. bonds due to the potential risk of non-appropriation by future city councils. • Lease revenue bonds require slightly higher costs of issuance. ? Lease revenue bonds can be rated, but usually carry a lower bond rating than the City's general obligation debt. We would expect an "A" rating or better on these bonds. 3060 Centre Pointe Drive • Roseville, Minnesota 55113-1105 (612) 697-8500 • FAX (612) 697-8555 • www.ehiers-inc.com Affirmative Action/Equal Opportunity Employer Charter Member of the National Association of Independent Public Finance Advisors I'l Gross Revenue Recreational Facility Bonds Minnesota Statutes, Chapter 471 allows municipalities to issue gross revenue debt for recreational facilities. Under a gross revenue structure, the revenues are first pledged to debt service. If there is not sufficient revenue after debt service to pay all operating costs, the operating costs are required to be paid by the municipality. The property tax levy, if necessary, for operating costs would not be a special debt levy according to the Department of Revenue and would be, therefore, subject to levy limits. The City could pledge revenue from both the original and new ice sheet plus additional City revenues to the debt. Gross revenue bonds do result in interest rates which are slightly higher than lease revenue bonds because the ultimate source of payment is revenues rather than property taxes. We would hope that a rating of at least "Baa" could be secured from Moody's, but ratings on these types of facilities are rare. Sources and Uses The expected sources and uses of the second sheet of ice include the following: TABLE 1 Sources of Funds Uses of Funds Tax-Exempt Bond Proceeds 3,315,000 Construction 2,700,000 Capitalized Interest 182,500 Underwriters Discount 58,000 Costs of Issuance 55,000 Debt Service Reserve 303,000 Contingency 11,500 Total 3,315,000 Total 3,315,000 The cost of a general obligation bond would be approximately $25,000 less in principal du e to lower costs of issuance. Capitalized interest is assumed to include the issuance date of August, 1998, through October, 1999. The debt service reserve, equal to one year of debt service, would likely be required for any non-general obligation bond, but would not affect the cashflow of the arena because the interest earnings on the reserve would cover 95% of the higher debt service resulting from the need for the reserve. In some cases, rating agencies are also requiring debt service reserves for general obligation bonds which rely heavily upon revenues for meeting debt service. For purposes of comparison, we have included the reserve for all types of debt. The sources of funds may include other grants or funds such as a State of Minnesota Mighty Ducks grant. For each $100,000 of additional funds available, the annual debt service should be reduced by approximately $9,000. The reverse would also be true: if costs increased by $100,000, the debt service would increase by approximately $9,000. The different types of bond structures listed above would require the following net debt service assuming a 15 year bond term and a 20 year bond term. We have also assumed that the revenue bonds would be enhanced by a pledge of revenues from the municipal liquor operations. TABLE 2 G.O. Bonds Lease Rev. Gross Revenue 15 Years 322,000 335,000 337,000 20 Years 265,000 279,000 282,000 2 -7-8 0 Revenues and Expenses of the Facility • We have received data from the City staff regarding historical operational revenues and costs of the existing sheet of ice. The City of Richfield has shown a high number of hours rented historically, averaging slightly over 2,000 hours. The operating shortfalls over time have varied depending upon the capital outlay requirements and depreciation requirements. The City staff also prepared a projection for hours to be rented in the new facility and additional operating costs, which we have split into two levels including a high usage estimate and a moderate usage estimate. We have assigned a hourly rate to use the facilities for peak and non-peak hours based upon our experience with new ice sheets in Anoka County, Champlin, West St. Paul, and South St. Paul and comparisons to other dual sheet cities. The following issues are important assumptions for the analysis: ? The new facility will open in the fall of 1999 at the projected level of usage reached immediately ? Planned capital improvements on the first sheet will be included in the second sheet financing ? The 20 year amortization is utilized for the revenue bonds. ? Advertising revenues and increased concessions revenues will be to be evaluated. The chart below demonstrates the results of adding the additional debt against the revenues of the second sheet of ice and identifies the operating revenues from the first and second sheet TABLE 3 First Sheet Only 1998 1999 2000 2001 2002 Gross Revenues 357,190 364,334 371,620 379,053 386,634 less Debt Service 0 0 0 0 0 Net Revenues 357,190 364,334 371,620 379,053 386,634 less Operating Costs (410,070) (426,473) 44( 3,532) 46( 1,273) (479,724) Profit/(Loss) (52,880) (62,139) (71,911) (82,220) (93,090) TABLE 4 • High Usage Second Sheet Only 1998 1999 2000 2001 2002 Gross Revenues 55,726 222,905 227,363 231,910 less Operating Costs (second sheet) (23,638) (94,550) (98,332) (102,265) less net loss (first sheet) 6( 2,139) 7( 1,911) (82,220) 9( 3,090) Net Revenues (30,050) 56,444 46,811 36,555 less Debt Service (70,500) 28( 2,000) (282,000) (282,000) Profit/(Loss) - Both sheets (100,550) (225,556) (235,189) (245,445) or Profit/(Loss) without first sheet operating expenses N/A (38,412) (153,645) (152,969) (152,355) 3 -7-9 TABLE 5 Moderate Usage Second Sheet Only Gross Revenues less Operating Costs (second sheet) less net loss (first sheet) Net Revenues 1998 1999 43,750 (22,388) 6( 2,139) (40,777) 7( 0,500) (111,277) 2000 2001 2002 175,000 178,500 182,070 (89,550) (93,132) (96,857) 7( 1,911) 8( 2,220) 9( 3,090) 13,539 3,148 (7,877) less Debt Service Profit/(Loss) - Both Sheets or Profit/(Loss) without first sheet operating expenses (282,000) (282,000) 28( 2,000) (268,461) (278,852) (289,877) N/A (49,138) (196,550) (196,632) (196,787) We appreciate the opportunity to work with the City on this project. If you require further information, please contact us as soon as possible. Sincerely, EHLERS & ASSOCIATES, INC. Mark Ruff Vice President 0 4 /"-l D EXHIBIT I lie City of Richfield Potential Second Sheet of Ice Statement of Revenues and Expenditures Moderate Usage SECOND SHEET ONLY REVENUES Second Sheet Revenues Total Revenue EXPENDITURES Labor& Overhead Utilities General Supplies Other Operating Depreciation Capital Outlay Total Expenditures TOTAL INCOME AVAILABLE FOR DEBT SERVICE DEBT SERVICE 1998 Revenue Bond ($3,315,000 paid over 20 years at 6.15%) TOTAL DEBT SERVICE INCOME AFTER DEBT SERVICE - Second Sheet Only I9 Actual Revised 1996 1997 0 0 0 0 0 0 0 Budget 1998 1999 2000 2001 2002 43,750 175,000 178,500 182,070 0 43,750 175,000 178,500 182,070 11,513 46,050 47,892 49,808 7,500 30,000 31,200 32,448 500 2,000 2,080 2,163 2,875 11,500 11,960 12,438 0 0 0 0 0 0 0 0 0 22,388 89,550 93,132 96,857 0 21,363 85,450 85,368 85,213 70,500 282,000 282,000 282,000 0 70,500 282,000 282,000 282,000 0 (49,138) (196,550) (196,632) (196,787) Prepared by Ehlers and Associates Draft for Discussion Only • City of Richfield Potential Second Sheet of Ice Statement of Revenues and Expenditures High Usage SECOND SHEET ONLY REVENUES Second Sheet Revenues Total Revenue EXPENDITURES Labor & Overhead Utilities General Supplies Other Operating Depreciation Capital Outlay Total Expenditures TOTAL INCOME AVAILABLE FOR DEBT SERVICE DEBT SERVICE 1998 Revenue Bond ($3,315,000 paid over 20 years at 6.15%) TOTAL DEBT SERVICE INCOME AFTER DEBT SERVICE - Second Sheet Only EXHIBIT 2 Actual Revised Budget 1996 1997 1998 1999 2000 2001 2002 55,726 222,905 227,363 231,910 0 0 0 55,726 222,905 227,363 231,910 12,763 51,050 53,092 55,216 7,500 30,000 31,200 32,448 500 2,000 2,080 2,163 2,875 11,500 11,960 12,438 0 0 0 0 0 0 0 0 0 0 0 23,638 94,550 98,332 102,265 0 0 0 32,089 128,355 129,031 129,645 70,500 282,000 282,000 282,000 0 70,500 282,000 282,000 282,000 0 0 (38,411) (153,645) (152,969) (152,355) Prepared by Ehlers and Associates Draft for Discussion Only 03/09/98 -7- /C'?.- EXHIBIT 3 r_? City of Richfield FIRST SHEET ONLY Actual 1996 Revised 1997 ' Budget 1998 1999 2000 2001 2002 REVENUES Ice Rental - Original Sheet 222,890 223,750 235,350 240,057 244,858 249,755 254,750 Adult Hockey League 20,231 19,280 19,900 20,298 20,704 21,118 21,540 Concessions, Skate Rental/Sharp, Vending, Equip 33,531 32,980 32,710 33,364 34,031 728 17 34,712 083 18 35,406 18 445 High School/ Ice Show Gate Receipts & Regis 16,233 16,880 17,040 17,381 21 308 , 734 21 , 169 22 , 22 612 Open Skating/Patch 17,774 912 27 18,660 600 23 20,890 24,600 , 25,092 , 25,594 , 26,106 , 26,628 Skating Lessons/Hockey School , , 650 5 900 6,018 6,138 6,261 6,386 Building Rent , Advertising 192 400 800 816 832 849 866 Miscellaneous Total Revenue 338,763 336,200 357,190 364,334 371,620 379,053 386,634 EXPENDITURES Labor & Overhead 199,126 191,450 203,070 211,193 219,641 228,426 237,563 Utilities 59,310 67,800 68,400 71,136 73,981 76,941 80,018 General Supplies 15,001 10,590 11,570 12,033 12,514 13,015 13,535 Other Operating 88,987 90,960 93,030 96,751 100,621 104,646 108,832 Depreciation 18,259 34,000 34,000 35,360 36,774 38,245 39,775 Total Expenditures 380,683 394,800 410,070 426,473 443,532 461,273 479,724 REMAINING INCOME - First Sheet Only (41,920) (58,600) (52,880) (62,139) (71,911) (82,220) (93,090) 0 Prepared by Ehlers and Associates Draft for Discussion Only 03/11/98 • I?I? City of Richfield Potential Second Sheet of Ice Statement of Revenues and Expenditures ASSUMPTIONS Inflation - Revenues 2.00% Inflation - Expenses 4.00% Second Sheet of Ice Rate 1=I9SdLs Revenue High Usage Prime Rate Hours 120 1,567 188,040 Non-Prime Rate Hours 95 M 34.865 1,934 222,905 Moderate Usage Prime Rate Hours 120 1,300 156,000 Non-Prime Rate Hours 95 244 19.000 1,500 175,000 r EXHIBIT 4 Prepared by Ehlers and Associates Draft for Discussion Only 03/11/98 6E CITY OF RICHFIELD, MINNESOTA Council Letter No. 67 Agenda March 23, 1998 Issue Statement: Consideration of a request for an itinerant place of amusement license for Richfield Women of Today, 6527-17th Avenue, Richfield, MN 55423, for their Twelfth Annual Richfield Community Easter Egg Hunt to be held April 5, 1998. Background: In February, Richfield Women of Today submitted a request for an itinerant place of amusement license for April 5, 1998 for their "Twelfth Annual Richfield Community Easter Egg Hunt" event. The event will take place at the Community Center at Augsburg Park. They are requesting that the fee be waived as they are a non-profit organization. They will be serving food items like popcorn, hot dogs, and mini donuts and have contacted health inspectors for food serving requirements. Their hours of operation will be 11 a.m. - 5 p.m. Recommended Motion: Approve the itinerant place of amusement license and fee waiver request for April 5, 1998 for Richfield Women of Today, 6527-17th Avenue, Richfield, MN 55423. Basis of Recommendation: 1. The applicant has complied with the City Code pertaining to this license. Alternative Recommendation: 1. The Council could decide to deny the request. This would mean that they would be unable to hold the event. The Public Safety Department has not found any basis for a denial. Discussion/Decision Mode: Consideration of the request for the issuance and fee waiver of an itinerant place of amusement license for Richfield Women of Today, 6527-17th Avenue, for their Twelfth Annual Richfield Community Easter Egg Hunt to be held April 5, 1998, is presented at this time. Respectfully submitted, James D Prosser City Manager JDP:cak &o CITY OF RICHFIELD, MINNESOTA Council Letter No. 66 Agenda March 23, 1998 Issue Statement: Setting date of hearing for the issuance of a new secondhand goods dealer license for Grow Biz International, Inc., d/b/a Computer Renaissance located at 720 West 78th Street, Richfield, MN. Background: City ordinance provides that the City Council conducts a public hearing to consider all secondhand goods dealer licenses. Recommended Motion: Schedule April 13, 1998 as the date to hold a public hearing on the issuance of a new secondhand goods dealer license for Grow Biz International, Inc., d/b/a Computer Renaissance located at 720 West 78th Street, Richfield, MN. Basis of Recommendation: Hearings must be scheduled and held before issuance of a new license may be considered. Alternative Recommendation: Schedule the hearing for another date; however, this may delay the licensing process. Discussion/Decision Mode: Action to schedule the public hearing on April 13, 1998 will provide sufficient time for legal publication of the hearing. Respectfully submitted, James . Prosser City Manager JDP:ds 9 &c CITY OF RICHFIELD, MINNESOTA Council Letter No. 65 Agenda March 23, 1998 Issue Statement: Award of contract for 1998 removal of diseased trees from private property. Background: In the early 1970's, the City of Richfield began a shade tree disease program to assist homeowners in the removal of diseased elm and oak trees on private property. When the City's Tree Inspector marks a diseased tree on private property for removal, the homeowner has three options: • Removal of the tree by the homeowner. • Homeowner hires a contractor to perform the work. • Homeowner authorizes the City's contractor to perform the work. If the City's contractor performs the tree removal, the homeowner has the option to pay the removal costs immediately or have the cost assessed to the property taxes over a three-year period. In an effort to attract more bidders, since 1994, staff divided the City into two districts. Staff also allowed bidders to give separate prices for front yard and back yard trees, realizing accessibility is a primary factor in cost. A formal bid opening for this work was held on March 2, 1998, and five bids were submitted. The companies were asked to bid a per-inch cost, based on the average number and size of trees removed in the past five years. Bids were as follows: East District West District Total Asplundh Tree Expert Company $24,692.00 $29,882.00 $54,574.00 Ryan's Tree Service, Inc. $28,295.00 $32,135.00 $60,430.00 Hugo's Tree Care $40,804.00 $43,524.00 $84,328.00 Precision Landscape & Tree, Inc. $41,211.33 $46,935.72 $88,147.05 Ceres Environmental Services, Inc. $45,575.00 $51,800.00 $97,375.00 Contract amounts for the past three years are listed below: 1995 $ 80,188.00 1996 $ 76,678.00 1997 $ 85,630.00 Recommended Motion: Accept the bid minutes/tabulation and award a contract for 1998 removal of diseased trees on private property to Asplundh Tree Expert Company in the total estimated amount of $54,574. Basis of Recommendation: 1. Asplundh Tree Expert Company submitted the lowest acceptable bid for this work. 2. Past experience with this company has proven them to be a responsible contractor. 3. Staff believes the per-tree prices are low enough to provide Richfield homeowners with a reasonable removal cost should they decide to have the City coordinate the removal of their diseased tree(s). Alternative Recommendation: Council may choose to reject this bid and direct staff to readvertise in an attempt to receive a lower bid. However, staff does not believe lower prices could be obtained from a responsible contractor. Discussion/Decision Mode: Staff is requesting approval at the March 23, 1998 Council meeting in order to assure sufficient time to process necessary paperwork before the first trees are marked for removal. Respectfully submitted, Jame . Prosser City M ager JDP:ds Attachment 0 CITY OF RICHFIELD, MINNESOTA Bid Opening March 2, 1998 11:00 a.m. Removal and Disposal of Diseased Trees on Private Property East District and/or West District Bid No. 98-3 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 removal and disposal of diseased trees on private property, bid no. 98-3, as advertised in the official newspaper on February 18, 1998. Present: Thomas Ferber, City Clerk Mike Eastling, Public Works Director Cheryl Krumholz, City Manager Representative Ray Wroblewski, Sr. Clerk Typist • The following bids were submitted and read aloud: Vendor Bid Security Bid Amount Bid Amount EAST WEST Hugo's Tree Care Cashier's Hugo, MN Check * $40,804.00 $43,524.00 Asplundh Tree Expert Co. Spring Lake Park, MN 5% Bid Bond $24,692.00 $29,882.00 Ceres Environmental Services Inc. 5% Bid Bond * $45,575.00 $51,800.00 Brooklyn Park, MN Precision Landscape & Tree, Inc. 5% Bid Bond $41,211.33 * $46,935.72 Little Canada, MN Ryan's Tree Service, Inc. Bloomington, MN 5% Bid Bond $28;295.00 * $32,135.00 * Corrected bid amount reflecting correction of bidders arithmatic extension errors. The City Clerk announced that the bids would be tabulated and considered at the March 23, 1998 City Council Meeting. Thomas P. Ferber City Clerk bB CITY OF RICHFIELD, MINNESOTA Council Letter No. 64 Agenda March 23, 1998 Issue Statement: Resolution requesting the Minnesota Department of Transportation (MnDOT) to prepare an official right-of-way map for 1-494. Background: Discussion has been underway for over ten years related to improvement of 1-494. An Environmental Impact Statement was completed in 1992 but a final record of decision has not been issued by the Federal Highway Administration. There is great interest in development along 1-494 in the City of Richfield and in other communities bordering the roadway. The delay in obtaining federal approval for the Environmental Impact Statement has hampered the ability of the Minnesota Department of Transportation and cities in the 1-494 corridor to protect the proposed right of way needed to build the widened freeway. Communities along 1-494 believe it is important to use the official map process as a way to protect the right-of-way needed for the expansion of 1-494. Cities located along 1-494 have approached the Minnesota Department of Transportation about the possibility of preparing an official right of way map that identifies the construction limits for the preferred alternative for highway alignment. Mr. Richard Stehr, Metro District Engineer of the Minnesota Department of Transportation, agreed to perform the survey work this year if the cities along 1-494 requested the official right of way map. An official right of way map will enable cities, including Richfield, to work with developers to avoid encroaching on the proposed right of way needs for the new freeway and, more importantly, avoid costly land acquisition when the freeway is eventually rebuilt. An official map also will qualify cities for the use of the Right of Way Loan Fund (RALF), administered by the Metropolitan Council, to buy land that is threatened by development and reserve it for future highway purposes. Another advantage is the official map can assist cities in guiding development close to 1-494. The construction limits shown on an official map can be used as boundary lines to determine setbacks in the review of development and redevelopment proposals. A public hearing must be held and all affected property owners must be notified before Council can adopt the official map. Council is under no obligation to adopt the Official map. However, if Council chooses to adopt the 1-494 official map, it becomes a part of the City's Comprehensive Plan and can be used to review development proposals. 0 ?6-1 An official map may not be able to prevent encroachment by developments without the City or Minnesota Department of Transportation buying the land. Property owners may view the official map as an infringement on their right to develop their land. However, Richfield has had a good experience using the official map process in the 77th Street Reconstruction Project. If cities approve the request for an official map, the work could begin this year and finish in less than a year. Recommended Motion: Adopt the attached resolution which requests the Minnesota Department of Transportation to prepare an official right-of-way map for 1-494. Basis of Recommendation: 1. The widening of 1-494 has been stalled for several years due to financial constraints even though development along 1-494 has proceeded at a rapid pace. 2. An official map is a development tool that can help cities preserve the right of way needed to widen 1-494 and control future right of way costs. 3. An official map can guide redevelopment in the 1-494 corridor and reconcile the spatial needs of future development with those for the freeway. Alternative Recommendation: 1. Do not request the preparation of an official map. However, the Council is under no obligation to adopt the official right-of-way map for 1-494 after it is prepared. Failure to make the request will not jeopardize the ability of other cities to obtain an official right of way map for 1-494. 2. Amend the resolution as the Council deems appropriate. Discussion/Decision Mode: This item is on the March 23, 1998 Council agenda. Council may take action now or at a later time. It should be noted that other communities in the 1-494 corridor are considering similar resolutions within the next month. Respectfully submitted, James . rosser City Manager • JDP:ds Attachment (06-a 0 RESOLUTION NO. RESOLUTION REQUESTING THE MINNESOTA DEPARTMENT OF TRANSPORTATION TO PREPARE AN OFFICIAL RIGHT-OF-WAY MAP FOR 1-494 WHEREAS, 1-494 is under the jurisdiction of the Minnesota Department of Transportation (MnDOT); and WHEREAS, extensive time, effort, involvement, and funds went into the preparation of the Environmental Impact Statement (EIS) for that portion of 1-494 between 1-394 and the Minnesota River; and WHEREAS, a preferred alternative was selected in accordance with said EIS which sets forth proposed right-of-way needs along its route; and WHEREAS, limitations on funding have resulted in the delay of the adoption and final approval as well as implementation of the EIS; and WHEREAS, the provision of an adequate transportation system is vital to the state, the metropolitan area, and particularly the communities along its route; and WHEREAS, the lack of an official right-of-way map potentially jeopardizes the future ability of this vital transportation link being implemented due to encroachment of development; and WHEREAS, the establishment of an official right-of-way map would clearly define the public needs and significantly aid all levels of government in protecting said needs for the public. NOW, THEREFORE, BE IT RESOLVED that to properly protect the public transportation needs along 1-494 between 1-394 and the Minnesota River that an official right-of-way map along this corridor is extremely important; and BE IT FURTHER RESOLVED that the Minnesota Department of Transportation is hereby requested to prepare and establish said official right-of-way map as soon as possible. Adopted by the City Council of the City of Richfield, Minnesota this 23rd day of March, 1998. Martin J. Kirsch, Mayor 0 ATTEST: Thomas P. Ferber, City Clerk (OP CITY OF RICHFIELD, MINNESOTA Council Letter No. 63 Agenda March 23, 1998 Issue Statement: Selection of a long-term disability insurance carrier to continue the LTD benefit for certain full-time employees. Background: Since 1982, the City has offered a long-term disability (LTD) insurance benefit to certain full-time employees. The City currently offers this benefit to all Management, General Services, Local 49 Labor and Trades, Police Officers and Agents, Dispatchers and Police Supervisory employees. Schools Insurance Fund has been the City's provider since the City initiated this benefit. The current contract expires at the end of March 1998. The City's current premium cost is $.42 per $100 of covered payroll for all groups except Police Officers and Agents and $.64 per $100 of covered payroll salary for that group. The Police Officer group was added in 1997. Minnesota Statutes provide that group insurance contracts for LTD must be let out for bid at least every five years. Therefore, the City requested long-term disability insurance proposals to be submitted by February 19, 1998. Eight providers submitted proposals for the City coverage including the City's current provider. The proposals were summarized along with an in-depth analysis of coverage by the City's insurance agent, J & H Marsh & McLennan. The bid analysis was presented to the City by J & H Marsh & McLennan on March 2. Bid Analysis Benefit Level/Plan Design The benefit level included in the specification mirrors the coverage the City currently provides to eligible employees. Moreover, this benefit level and plan design was one that was implemented and fitted into the City of Richfield's unique Personal Leave/Short-term Disability/LTD benefit program. All bidders provided coverage that met the requirements of the specifications. Some carriers provided benefit levels that were slightly better than the current proposal. • Premium Rate The premium rates submitted by the various providers are listed as follows: School's Insurance Fund: $356 per $110 of covered payroll CIGNA $.44 per $100 of covered payroll CNA $36 per $100 of covered payroll Fortis $.24 per $100 of covered payroll Guarantee Life $.26 per $100 of covered payroll Reliance Standard $.42 per $100 of covered payroll Standard Insurance $34 per $100 of covered payroll UNUM $34 per $100 of covered payroll The City's relatively favorable experience with LTD claims as well as the current market conditions were both important factors for the rates the City received. The specifications called for a two year rate guarantee. However, several companies provided rate guarantees in excess of the two years. Based upon the proposal submitted by the various insurance providers and the premium rates quoted, it is the recommendation of City staff and of J & H Marsh & McLennan that the City accept the bid proposal from Fortis. Fortis has an LTD claims office in Minneapolis as well as a sales and service office in Minneapolis. In addition, Fortis has agreed to provide the City with a three-year rate guarantee. With respect to benefits, while all the bidders were substantially equal, the benefits outlined in the Fortis proposal slightly exceeded some the benefit level provided by the City's current provider, Schools Insurance Fund. At the March 9, 1998 City Council meeting, Council Member Stokes alerted the City Manager and City Attorney to the potential for a conflict of interest in this matter. Council Member Stokes is employed by Fortis Insurance in their dental insurance area. City Attorney Corrine Thomson thoroughly reviewed this matter with Fortis Insurance and applicable state statutes. As a result of that review, Ms. Thomson indicated that any direct financial benefit that Ms. Stokes might receive is insignificant and that the City is authorized to enter into the LTD contract with Fortis. Council Member Stokes should not participate in discussion or voting on the contract. Recommended Motion: Adopt the attached resolution authorizing the City Manager to execute an agreement with Fortis for a long-term disability insurance contract for a three year period beginning April 1, 1998. Basis of Recommendation: 1. The City complied with the State Statute requiring bids for long-term disability coverage and Fortis provided the City with the most favorable bid as a result of that process. 2. The Fortis rate of $.24 per $100 of salary for all employee groups will realize a savings of nearly $18,000 annually over current premiums paid by the City for the same coverage. 3. Fortis is a very reputable company providing benefits such as long-term disability coverage for a number of cities in the metro area. 4. The three-year rate guarantee is also very favorable and means that for at least three years the City will not have to seek additional proposals for this coverage and can enjoy the substantial savings in LTD rates. V-3 Alternative Recommendation: 1. The City Council could authorize the City Manager to request other proposals from other insurance carriers. However, the current process is a valid one and has yielded excellent results 2. The City Council could award the bid to another provider that submitted a proposal to the City. However, staff does not recommend that action. Discussion/Decision Mode: It is suggested that action on this item be taken at the March 23, 1998 City Council meeting so that the insurance coverage may be switched and all necessary paperwork can be completed by March 31, 1998 when the current coverage expires. Respectfully submitted, James D fsser City Manager JDP:ds • r. ? (Ofi - 4 CITY OF RICHFIELD, MINNESOTA RESOLUTION NO. RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH FORTIS INSURANCE COMPANY FOR LONG-TERM DISABILITY INSURANCE BENEFITS WHEREAS, the City is required by Minnesota statutes to request proposals for group insurance coverage at least once every five years; and WHEREAS, the City requested proposals for long-term disability insurance coverage for benefit years beginning in 1998; and WHEREAS, the City made benefit and cost comparisons evaluating all the proposals, using written criteria; and WHEREAS, Fortis provided the lowest premium cost and met all of the City's criteria; and • WHEREAS, the proposed premium rate will be a substantial annual savings for the City. NOW, THEREFORE, BE IT RESOLVED the City Manager is authorized to execute an agreement with Fortis Insurance Company for long-term disability insurance benefits for the three-year period beginning April 1, 1998. Adopted by the City Council of the City of Richfield, Minnesota this 23th day of March, 1998. Martin J. Kirsch, Mayor ATTEST: Thomas P. Ferber, City Clerk 0 3 CITY OF RICHFIELD, MINNESOTA Council Letter No. 62 Agenda March 23, 1998 Issue Statement: Presentation of certificates to Girl Scouts, along with family and friends, for their assistance as Hydrant Marshals for the winter season. Background: During the past winter, the recipients of these certificates assisted their neighborhoods with shoveling out the fire hydrants to enable the Richfield Fire Division clear access in case of an emergency. Recommended Motion: Present certificates to Tamra Bernier, Diana Bernier, Terry Bernier, Bill Johnson, Sean Bernier, Elizabeth Goschey and Kris Johnson. Basis of Recommendation: 1. The presentation of these certificates will serve to increase public awareness of the importance of access to City hydrants in case of an emergency. 0 2. The recipients are deserving of recognition and may then provide future assistance to the community as a whole. Alternative Recommendation: None. Discussion/Decision Mode: The Mayor, City Council, Fire Marshal and Public Safety Director will present the certificates. Respectfully submitted, James . Prosser City Manager JDP:ds 40