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7-10-95 agenda~G~ CITY OF RICHFIELD, MINNESOTA MONDAY, JULY 10, 1995 REGULAR CITY COUNCIL MEETING 7:00 P.M. COUNCIL CHAMBERS AGENDA INTRODUCTORY PROCEEDINGS CALL TO ORDER PLEDGE OF ALLEGIANCE APPROVAL OF MINUTES OF THE (1) SPECIAL CITY COUNCIL MEETING OF JUNE 26, 1995; (2) REGULAR CITY COUNCIL MEETING OF JUNE 26, 199.5 AND (3) CITY COUNCIL CLOSED EXECUTIVE SESSION OF JUNE 26, 1995 PRESENTATION 1. OPPORTUNITY FOR PERSONS TO ADDRESS THE COUNCIL ON ITEMS NOT LISTED ON THE AGENDA AGENDA APPROVAL i 2. COUNCIL APPROVAL OF AGENDA CONSENT CALENDAR 3. 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 RESOLUTIONS DECLARING COSTS TO BE ASSESSED FOR ALLEY MAINTENANCE AND SNOWPLOWING FOR JANUARY 1, 1994 TO DECEMBER 31, 1994, CITY PROJECT NO. 893, AND SETTING DATE OF HEARING FOR AUGUST 28, 1995 C.L. 170 B. CONSIDERATION OF APPROVAL OF RESOLUTION PROPOSING TO SPECIALLY ASSESS COSTS OF 1996 ALLEY MAINTENANCE SPECIAL ASSESSMENT PROJECT, CITY PROJECT NO. 913, AND SETTING DATE OF HEARING FOR AUGUST 28, 1995 C.L. 171 C: CONSIDERATION OF APPROVAL OF RESOLUTIONS DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF ASSESSMENT ROLL FOR CITY PROJECT NO. 891, 1994 LHN MAINTENANCE AND SETTING DATE OF HEARING FOR AUGUST 28, 1995 C.L.. 172 D. CONSIDERATION OF APPROVAL OF RESOLUTION PROPOSING TO SPECIALLY ASSESS COSTS OF 1996 MAINTENANCE ASSESSMENTS, LHN REDEVELOPMENT AREA, CITY PROJECT NO. 912, AND SETTING DATE OF HEARLNG FOR AUGUST 28, 1995 C.L. 173 E. CONSIDERATION OF APPROVAL OF RESOLUTIONS DECLARING COSTS TO BE ASSESSED FOR REMOVAL OF DISEASED TREES FROM PRIVATE PROPERTY FOR JANUARY 1, 1994 TO DECEMBER 31, 1994, ORDERING PREPARATION OF ASSESSMENT ROLL AND SETTING DATE OF HEARING FOR AUGUST 28, 1995 C:L. 174 F. CONSIDERATION OF APPROVAL OF RESOLUTION AUTHORIZING APPROVAL OF COOPERATIVE AGREEMENT NO. 73314 WITH. STATE OF MINNESOTA DEPARTMENT OF TRANSPORTATION FOR STATE SHARE OF COSTS OF CONSTRUCTION AND CONSTRUCTION ENGINEERING SERVICES FOR HUMBOLDT AVENUE STORM SEWER PROJECT C.L. 175 G. CONSIDERATION OF APPROVAL OF AGREEMENT-WITH ORR-SCHELEN- MAYERON & ASSOCIATES, INC. FOR CONSTRUCTION ENGINEERING SERVICES ON HUMBOLDTAVENUE STORM SEWER PROJECT OF 77TH STREET PROJECT C.L. 176 H. CONSIDERATION OF APPROVAL OF AWARD OF TWO YEAR CONTRACT TO PROVIDE TOWING, IMPOUNDING AND STORAGE OF VEHICLES FOR CITY RICHFIELD TO MORROW AUTO SPECIALTY, INC. IN AMOUNT OF $3,745 C.L. 177. I. CONSIDERATION OF APPROVAL OF BID MINUTES/TABULATION AND AWARD OF CONTRACT FOR REHABILITATION OF SANITARY-SEWER LINES TO VISU-SEWER CLEAN & SEAL, INC. IN AMOUNT OF $149,610 C.L. 178 J. CONSIDERATION OF APPROVAL OF BID MINUTES/TABULATION AND AWARD OF PURCHASE ORDER FOR TWO SUBMERSIBLE PUMPS AT WATER PLANT TO QUALITY FLOW SYSTEMS IN AMOUNT OF $19,448 C.L. 179 K. CONSIDERATION OF APPROVAL OF BID MINUTES/TABULATION AND AWARD OF CONTRACT FOR 1995 STREET LIGHT CHANGE OVER- PROJECT TO NORTHERN STATES POWER COMPANY IN AMOUNT OF $38,740 C.L. 180 L. CONSIDERATION OF APPROVAL OF PURCHASE IN EXCESS OF $5,000 FOR PUBLICATION OF 1995 FALL AND 1995-199.6 WINTER SEASONAL BROCHURES FROM NYSTROM PUBLISHING COMPANY, INC. IN AMOUNT OF $10,738 C.L. 181 M. CONSIDERATION OF APPROVAL OF APPLICATION FOR RENEWAL OF PIGEON LICENSE, 6837 RUSSELL AVENUE N. FIRST AND FINAL PAYMENT FOR ROUTE AND SEAL CRACK IN BITUMINOUS PAYMENT; BERGMAN COMPANIES INC. OF WISCONSIN; $123,294.47 O. FINAL PAYMENT OF SITE CONSTRUCTION AT MADISON PARK, CP899 BARBER CONSTRUCTION COMPANY, INC.; $8,11.9.78. PUBLIC HEARINGS PUBLIC HEARING AND SECOND READING OF UPDATES TO SECTION 310 OF CITY CODE, PERSONNEL SECTION COUNCIL LETTER NO. 182 5. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION APPROVING REDEVELOPMENT PLANS AND TAX INCREMENT FINANCING PLANS FOR RICHFIELD REDISCOVERED PROGRAM COUNCIL LETTER NO. 183 RESOLUTIONS 6. CONSIDERATION OF RESOLUTION REGARDING FINDINGS OF FACTS RELATED TO DENIAL OF COMMERCIAL KENNEL LICENSE TO JOEL D. LOCKETZ, DOCTOR OF VETERINARY MEDICINE, 740 WEST-66TH STREET COUNCIL LETTER NO. 1.84 7. CONSIDERATION OF RESOLUTION AUTHORIZING APPROVAL OF SPECIAL LEGISLATION AUTHORIZING ESTABLISHMENT BY HOUSING AND REDEVELOPMENT AUTHORITY OF HOLDING CORPORATIONS FOR SAGE PROPERTY COUNCIL LETTER NO. 185 ADMINISTRATIVE REPORTS & OTHER BUSINESS AIRPORT BUSINESS 8. AIRPORT STATUS REPORT 77TH STREET PROJECT BUSINESS 9. 77TH STREET PROJECT STATUS REPORT CORRESPONDENCE 10. LEGISLATIVE REPORT COUNCIL CHOICE 11. COUNCIL DISCUSSION ITEMS 12. CLAIMS AND PAYROLLS 13. 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. CITY OF RICHFIELD, MINNESOTA Council Letter No. ls5 Agenda July 10, -1995 Issue Statement: Consideration of a resolution approving special legislation authorizing the establishment by the HRA of holding corporations for the Sage property. Background: The Minnesota Legislature during its 1995 session,approved special legislation for the City of Richfield (attached). Before the legislation can be implemented, it must be approved by the Gity Council The legislation would make it possible for the HRA to establish and organize three separate nonprofit housing corporations. The HRA Board would form the board of directors of each of the three corporations. Each of the three apartment communities has a mortgage insured by FHA. The most cost effective way for the HRA to own the debt is to become the mortgagor. FHA policy, however, requires that each mortgage be owned by a single asset organization, the single asset being the mortgage. Recommended Motion: Adopt the attached resolution which approves the special legislation.. Basis of Recommendation: 1. The most cost effective way for the HRA to own the existing debt is to assume the .existing mortgages. 2. State Statute requires that the local governing body approve special legislation before it may be implemented. Alternative Recommendation: 1. Delay approve. 2. Refuse approval.. Discussion/Decision Mode: This item and its desirability was discussed at the HRA meeting on June 19, 1995. It is an integral part of the process for the HRA to consider becoming the owner of the. Sage property Respectfully submitted, Jame ..Prosser City Hager JDP:cak 7-/ RESOLUTION NO. RESOLUTION AUTHORIZING APPROVAL OF A SPECIAL LAW AUTHORIZING THE RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY TO FORM NON- PROFIT HOUSING CORPORATIONS WHEREAS, the legislature passed a law providing that the Richfield Housing and Redevelopment Authority may form or consent to the formation of ane or more corporations under Minnesota Statutes chapter 317A for the purpose of owning and operating housing developments financed. with mortgages insured by the Federal Housing Administration of the United States Department of Housing and Urban Development; to be occupied by low-and moderate- income persons and families, Session Laws 1995, Article 3, Section 42 ("Special Law"); and WHEREAS, pursuant to Minnesota Statutes Section 645.021, special .laws are not effective without a resolution adopted by majority vote of all members of the governing body of the local government unit affected and by filing with the Secretary of State a certificate required by statute; and WHEREAS, Subdivision 5 of the Special Law specifically provides that the City Council of Richfield must approve. the Special Law pursuant to Section 645.021; Subdivision 3 before the Law is effective; and WHEREAS, the City of Richfield deems the Special Law to be in and for the best interests of the residents of the City. NOW, THEREFORE, BE IT RESOLVED BY THE. CITY COUNCIL OF THE C1TY OF RICHFIELD,MINNESOTA: 1. That the Special Law is approved. 2. That the City Clerk is authorized and directed to file immediately with the Secretary of State a certificate stating the essential facts necessary to validate approval, including a copy of the resolution of approval by the City Council. The form of this certificate shall be consistent with that prescribed by the Attorney General for this purpose Passed by the City Council of the City of Richfield, Minnesota this 10th day of July, 19.95. Martin J. Kirsch, Mayor ATTEST: Thomas P. Ferber, City Clerk 7 ~~ 65TH DnYI MoND~Y,11~Y 22, 195b z-;317 - Sec. 42.. [CITY OF RICHFIELD; FORMATION OF NONPROFIT HOC:SI.tiG CORPORATIONS.) Subdivision 1. (FORMATION OF NOI~'PROFIT HOUSING CORPORATIONS.) The housine and redevelopment authori of the city of Richfield may form or consent to the formation of one or more coroorations under Minnesota Statutes, chapter 317A, for the u ose of owning and operating housin developments financed with mortea~es insured ~ the Federal Housin¢ Administration of the C:nited States Department of Housinrt and Urban Development to be occupied ~ low- and moderate-income ersons and families. Subd. 2. [CONTROL BY AUTHORITY.) The authority shall be a member of each corporation, and the members of the board of directors of each corooration shall be members or employees of the authority. The authority may cavitalize a corporation and may ac u~re all or a part of the corporation'; ;hare or member certificates. The aut'^,nr:n~ shall approve a corooration's articles of incorporation and bvla~.•s. direr*.ors, rp oiects. and expenditures. the sail Jr com~evance of ro ects the issuance of obligations, and such other actions of a corporation as the authorih• may determine. The authori shall take title to property of a corporation uDOn its dissolution. Subd. 3. [ISSUANCE OF BONDS.) A nonprofit corooration authorized to be formed under subdivision 1 may issue bonds for the u ose of financing the acquisition and operation of multifamily housine developments, ire furtherance of the ublic u ose of provision of Icnv- and moderate-income hourins;. The bonds shall be ap able solei~• room the revenues of the developments and snail be issued upon wch terms as the corporation shall determine. ~.^th tnr consent of the authority: -- ~~~ ~~ JOURNAL OF Tf~ HoU$E [65TH DAY 6018 "' Subd. 4. [PROPERTY TAX EXEMPTION.] Property owned by a nonprofit corporation authorized to be formed under subdivision 1 shall be treated as public ro er exclusively used for a public up rpose-under Ytinnesota Statutes, section 272.02, subdivision 1. Subd. 5. [EFFECTIVE DATE.J This section is effective the day alter compliance with Minnesota Statutes, section 645.02 ;subdivision 3 by the ci council of the ci of Richfield. CITY OF RICHFIELD, MINNESOTA Council Letter No. is4 Agenda July 10, 1995 Issue Statement: Consideration of a resolution regarding findings of facts .related to the denial of a commercial kennel license to Joel D. Locketz, Doctor of Veterinary Medicine, at 710 West .66th Street. Background: At the June 26 regular Council meeting, Dr. Joel D. Locketz's application for a commercial kennel license was reconsidered by the Council. The applicant-proposed to work out of the Pet Food Warehouse, .710 West 66th Street. Dr. Locketz's affiliation with Pet Food Warehouse would be that of a leasee for space to conduct routine wellness exams and certain. preventative inoculations to dogs and cats. The Council reviewed the independent hearing examiner's recommendations and testimony from area veterinarians and other interested parties. After Council discussion, the, license was denied-and the City Attorney was instructed to prepare the findings of facts in support of the denial. Helen Winder, the attorney for Dr. Joel Locketz, .has requested an opportunity to address the City Council at the July 10 meeting. Recommended Motion: Approve the findings of facts related to the denial of a commercial kennel license to Joel D. Locketz, D.V.M., at 710 West 66th Street: Basis of Recommendation: 1. It is necessary that when the Council- denies a license, the reasons; i.e., findings of facts, for the denial be drafted and acted upon. Alternative. Recommendation: 1: The Council may wish other facts included in the findings. 2. The Council could decide to reconsider the license request. However, it would be appropriate to notify the persons who expressed .interest in this -issue prior to the reconsideration so that their concerns could be expressed. ~~ Discussion/Decision Mode: Recommendation to accept the findings of facts which support the denial of a commercial kennel license to Dr. Joel S. Locketz, 710 West 66th Street is presented for the Council's consideration. Respectful) ubmitted, James Prosser City Manager JDP:cak ~-~ RESOLUTION NO. FINDINGS, CONCLUSION AND DECISION REGARDING APPLICATION FOR COMMERCIAL KENNEL LICENSE AT 710 WEST 66TH STREET BE IT RESOLVED, by the City Council of the City of Richfield, as follows: The City Council hereby makes the following findings of fact. FINDINGS OF-FACT 1. The City of Richfield (the "City") regulates, by ordinance, certain commercial activities involving dogs and cats. 2. The primary source of such regulations is contained in subsection 905.31 which requires the issuance of a commercial kennel license as a precondition. to engaging in "the business of selling, boarding, breeding, showing., treating or grooming dogs or cats..." 3. On or about March 28, 1994, the City received an application for a commercial kennel license (the "Application") from Joel D. Locketz, D.V.M. (the "Applicant"). The specific activity for which licensure was sought was the vaccination of dogs and cats at 710 West 66th Street. 4. The Applicant was proposing to sublease space at that address from Pet Food Warehouse. 5. The Application came before the City Council for review and action at its April 25, 1994 meeting. Following a public hearing, the City Council voted to deny the application. 6. At its May 9, 1994 meeting, the City Council reopened its review of the matter in order to consider adoption of findings of fact. The City Council at that. time was unable to agree on findings of fact. Accordingly, the matter was referred to a hearing officer who would conduct further inquiry, hold further hearings and report to the City Council 7. At its June 26, 1995 meeting, the City Council once again considered the application. Before it on that date were the findings, conclusions and recommendation of the hearing examiner. 8. The Applicant was present at the June 26, 1995 meeting, along with the Applicant's legal representative, and was given an opportunity to present information and respond to inquiries or to comments from others who were present and gave information. ~ -3 9. The Application was opposed by a number of individuals, including individuals were engaged in the practice of veterinary medicine in the area, and such individuals were given the opportunity to provide both written and oral information to the City Council 10. -The area where the'licensed activity is proposed to occur is a strip type shopping center located at the intersection of 66th Street and Lyndale. The center, which has been open for business for less than 10 years, has been very successful in terms of the volumes of traffic and patrons it has attracted. The center. is served by a large common parking area which lies in front of the shops. The .parking area is frequently near maximum capacity. The shopping center also houses a restaurant. 11. Pet Food Warehouse, the tenant and principal occupant of the premises, operates a retail outlet at this location. One of the special features of the Pet Food Warehouse operation is that customers are encouraged to bring their pets with them when they shop. Applicant's activity would be conducted in a portion. of the .premises which has separate entrances and exits; hovuever, neither the Applicant nor the operators of Pet Food Warehouse. indicated any plans to restrict entrance and exit to the vaccination clinic from the store. 12. The shopping center which would .house the proposed activity is part of an area which is zoned Planned Multiple Residential (PMR). The City .Council is given. great latitude in reviewing proposals for uses within. PUD districts, and is given discretion to plan the assemblage and combination of uses in a manner which would not be available to it in traditional zoning districts. Section 530.05 of the Richfield Ordinance Code provides in relevant part "530.05.. Integrated design: The PUD will consist of a harmonious selection of use in grouping of buildings, services, parking areas, traffic and pedestrian circulation and open spaces and shall be planned and designed as an integrated unit." II. The City Council hereby makes the following conclusions. CONCLUSIONS 1. The uses of land are regulated primarily through zoning ,and licensing. The two forms of regulation should be viewed as complimentary to one another. Both- are intended to preserve, protect and promote the public health, safety and welfare. The Council concludes that the activity for which the proposed license is required will contribute to the intensification of a pattern of uses at shopping center which poses significant difficulties. in integration and harmonization. At best, excessive monitoring ~O-~ and enforcement activities may be required, at worst, hard to the public safety and welfare and economic damage to the shopping center may result. 2. The Council is concerned that permitting the licensed activity to occur at a location which uses one of the busiest parking lots and at one of the busiest intersections of the city, may create risks to .public safety. Notwithstanding existing leash and restraint regulations in the city, some owners of pets do on occasion allow their pets to be at large. The risk. of injury or harm is magnified in the close confines of the busy parking area which would serve the licensed activity.. 3. The Council is further concerned that permitting the licensed activity at the proposed location may create risks to public health. Because of the size of the parking area, the prompt removal of animal feces will be very difficult. Permitting the licensed activity would heighten the risk that animal feces may be tracked into the center's restaurant and the potential for food contamination. 4. Although the clinic is proposed to only vaccinate well animals, the. availability of a veterinarian may prompt individuals to bring in sick animals for examination.. This will have the. effect of exposing the other animals at Pet Food Warehouse and products which are'sold there to illness. III. Based upon the foregoing, each of which serves as an independently adequate basis,. the Council hereby makes the following decision. DECISION The Application for a commercial kennel license by Joel D. Locketz, DVM to allow the vaccination of animals at 710 West 66th Street is hereby in all respects ~~• Adopted by the City Council of the City of Richfield, Minnesota this day of , . Martin J. Kirsch, Mayor ATTEST: Thomas P. Ferber,. City Clerk s CITY OF RICHFIELD, MINNESOTA Council Letter No. 183 Agenda July 10, 1995 Issue Statement: Public hearing and consideration of resolution approving Richfield Rediscovered Housing Program dated May 15, 1995. Background: Richfield Rediscovered has been in operation since 1991.. During late winter and spring 1995, staff undertook the following: • Contacted approximately 165 property owners that have residential property valued at less than $58,000 by the assessor to determine their interest in selling. • Inspected at the owner's request, 36 sites to determine program eligibility. • Initiated more detailed inspections and appraisals of approximately 15 properties in preparation for possible purchase. On May 22, 1995, the HRA approved modification to the Richfield Rediscovered Program as follows: • Modification No. 4 to the Redevelopment Plans for Redevelopment Project Areas "A" and "B"; • Modification No. 1 to the Tax Increment Financing Plans for Tax Increment Redevelopment Districts "A-3" and "B-3"; and • Tax Increment Financing Plans for Tax Increment Redevelopment Districts "A-4" and B"-4". The proposed 1995-96 Richfield Rediscovered Program would accomplish the following: • Purchase and demolish 12 to 15 substandard homes. • Provide 12 to 15 new homes valued in a range of $110,000 to $160,000. • Generate land proceeds which returns approximately one-half of the HRA's appropriation after the initial year. Land proceeds and subsequent tax increment related to the 1995-96 program would support HRA remodeling and transformation activities. • Provide a new construction relocation resource for New Ford Town and Rich Acres residents. To date, four new homes have been purchased by New Ford Town and Rich Acres residents. Currently, three additional families are exploring new construction. To continue the program, it is necessary for the City Council to approve the program modifications. The Redevelopment Plans and Tax Increment Financing Plans under the proposed modification are attached for review. The text of the modifications for the d`-~ 1995-96 Program, known as Cycle 4, are essentially the same as past modifications. The reason modifications must be made is to alter the list of properties which may be purchased. Some property previously identified is deleted because it is no longer available; other property newly identified is added. Pages A-1 through A-3 and B-1 though B-2 are a composite list of all property from which those to be purchased would be taken. As the financial resources available from the HRA are limited, approximately 12 to 15 properties may be purchased. Therefore, the balance of properties remain as qualifying candidates for acquisition when additional funding becomes available. Most of east Richfield is encompassed in Redevelopment Project Area "A". Most of west Richfield is encompassed in Redevelopment Project Area "B". For easy readability, the page numbering of each section is prefixed by the type of modification. For example, the modification to the Redevelopment Plan for Redevelopment Project Area "A" is page numbered A-1, A-2, etc. while the page numbering for the new Tax Increment Financing Plan for Tax Increment District A-4 is page numbered A-4-1, A-4-2, etc. Recommended Motion: Adopt the attached resolution approving Modification No. 4 to the Redevelopment Plans for Redevelopment Project Areas "A" and "B"; Modification No. 1 to the Tax Increment Financing Plans for Tax Increment Redevelopment Districts "A-3" and "B-3"; and approving Tax Increment Financing Plans establishing Tax Increment Redevelopment Districts "A-4" and "B-4"; and, by reference, also approving a modification to the Richfield Redevelopment Project Plan and Tax Increment Plan. Basis of Recommendation: 1. Richfield Rediscovered is a proven redevelopment program. To be successful, the momentum of the program must be continued. 2. The Planning Commission on May 23, 1995 reviewed the modified and new redevelopment and tax increment plans and found the plans and the proposed acquisition and disposition of property to be in conformance with the Comprehensive Plan. 3. The HRA on May 22, 1995, approved modifications to the Richfield Rediscovered Redevelopment Plans, Tax Increment Financing Plans, and established the new tax increment districts and plans related thereto. 4. There is a market of property owners -who wish to voluntarily sell their substandard and/or obsolete homes. 5. There is a builder and buyer market for new, larger, contemporary housing. 6. Funding sources are available to continue the program. 7. Existing staff resources are available to administer the program. ~~ 8. Legal counsel has reviewed the program and related documents and found them to be in compliance with existing law. 9. Proper notice of the public hearing was published on June 28, 1995. 10. Hennepin County Board of Commissioners, Richfield's representative on the Hennepin County Board of Commissioners, and the Richfield School District, including the Vocational-Technical School, have been notified of the impacts to taxing jurisdictions and the public hearing as required by law. 11. .The estimated budget for the 12 to 15 properties anticipated to be redeveloped is as follows: Range of 12 to 15 Properties Property Acquisition $ 624,000 $ 780,000 Appraisals $ 4,200 $ 5,250 Demolition/Site $ 72,000 $ 90,000 Clearance Legal Expenses $ 12.000 $ 15.000 Total $ 712,000 $ 890,250 Based on new home values at full build out of $110,000 to $160,00, tax increments generated by the new housing development over a 25 year period would be paid to the Development Fund and would approximate $12,800 to $28,500 annually if 12 homes were built or $16,100 to $35,700 annually, if 15 homes were built. Alternative Recommendation: 1. Modify the proposed program. 2. Delay action until a future time. 3. Terminate any additional activity on the proposal. Discussion/Decision Mode: This modification is in part being processed to provide new construction opportunities for New Ford Town and Rich Acres residents and also to make it possible for other interested buyers to initiate construction during 1995. Respectfu submitted, James D Prosser City M ager JDP:cak ~3 RESOLUTION NO. RESOLUTION APPROVING THE REDEVELOPMENT PLANS AND TAX INCREMENT FINANCING PLANS FOR THE RICHFIELD REDISCOVERED PROGRAM BE IT RESOLVED by the City Council of the City of Richfield, Minnesota (City) as follows: Section 1. Recitals. 1.01 The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (Authority) has previously identified areas within the City as being in need of development, redevelopment and construction of new single family homes in order to provide families and individuals living in a substandard, poor quality environment an opportunity to move to standard housing by establishing a cash market for their existing housing and to provide an opportunity for Richfield to accommodate families currently residing in Richfield or elsewhere who are seeking larger housing units with features popular in today's market. 1.02 The Authority has previously adopted, and the City has previously approved, a Redevelopment Plan for Project Area "A", a Redevelopment Plan for Project Area "B", a Tax Increment Financing Plan for Tax Increment District "A-1" and a Tax Increment Financing Plan for Tax Increment District "B-1 ", all relating to the Richfield Rediscovered Program (Project), which plans collectively call for public and private expenditures to encourage development, redevelopment and new construction of single family homes within the project areas. 1.03 The Authority has previously adopted, and the City has previously approved a modified Redevelopment Plan for Project Area A , a modified Redevelopment Plan for Project-Area "B", a modified Plan for Tax Increment District "A-1 ", a modified Plan for Tax Increment District "B-1", a Tax Increment Financing Plan for Tax Increment Financing District "A-2" and a Tax Increment Financing Plan for Tax Increment District "B-2 (collectively, Plans), dated July 20, 1992, which plans are on file with the Authority. 1.04 The Authority has adopted a modified Redevelopment Plan for Project Area "A", a modified Redevelopment Plan for Project Area "B", a modified Plan for Tax Increment District "A"-2", a modified Plan for Tax Increment District "B-2", a Tax Increment Financing Plan for Tax Increment Financing District "A-3" and a Tax Increment Financing Plan for Tax Increment Financing District "B-3", (collectively, Plans), dated June 20, 1994, which Plans are on file with the Authority. 1.05 The Authority has adopted a modified Redevelopment Plan for Project Area "A', a modified Redevelopment Plan for .Project Area "B", a modified Plan for Tax ~`~ Increment District "A"-3", a modified Plan for Tax Increment District "B-3"; a Tax Increment Financing Plan for TaxLncrement Financing District "A-4" and a Tax Increment Financing Plan for Tax Increment Financing pistrict "B-4", (collectively, Plans), dated May 15, 1995, which Plans are on file with Authority. 1.06 In accordance with the Housing and Redevelopment Authorities Act and Tax Increment Financing Act (collectively, Acts), the Plans were .referred to the Richfield Planning Commission which on May 23, 1995 found that they conform to and are not in conflict with the general plan for redevelopment of the City as a whole. 1.07 The Authority on May 22, 1995 approved the Plans and referred them. to the City Council for a public hearing to be held by the City as required by the Acts. 1.08 Copies of the Plans have been forwarded to the board of Independent. School District No. 280, Intermediate School District No. 287, the board of commissioners of Hennepin County, and individually to the Hennepin County Board Commissioner representing the City of Richfield along with the Authority's estimate of the fiscal impact on other taxing- jurisdictions of establishing Tax Increment Financing District "A-4" and Tax Increment Financing District "B-4". Notice of public hearing on-the Plans to be held by the City was also sent to the school districts and county as required by the Acts. 1.09. This Council has fully reviewed the contents of the Plans and has this date conducted a public hearing thereon at which the views of all interested persons were heard. Section 2. Findings• Redevelopment Projects: Modified Plans. 2.01 It is hereby found and determined that within the Project there exist conditions of physical deterioration, economic obsolescence and unsafe, unsanitary and other poor housing used or intended to be used for living which are injurious to the health, safety, morals and welfare of the citizens of this community. 2.02 It is further specifically found and determined that: a.) The property in the Project would not be made available for redevelopment without the public intervention and financial assistance described in the Plans: b.) The modified Redevelopment Plans for the Project will afford .maximum opportunity, consistent with the sound needs of the City as a whole, for the redevelopment of the. Project by private enterprise; and c.) The modified Redevelopment Plans conform to the general redevelopment plan of the City as -set forth in the comprehensive municipal plan. 2.03 The findings. in this section are made in compliance with Section 469.08, subdivision 2 of the Housing and Redevelopment Authorities Act for the .purpose of showing the City's intent to exercise, in conjunction with the authority, the powers granted to the City and the Authority by the Act: Section 3 Findin~s• Tax Increment Financinq Districts "A-3" and "B-3": Modified Plans• 3.01 It is hereby found that the modified. Plans for Tax. Increment Financing Districts "A-3" and "B-3" are necessary to permit development and improvement of the Project Areas to their full potential 3:02 The modified Plans for Tax Increment Financing Districts "A-3" and "B-3" are consistent with the modified Plans for the Project Areas. 3.03 The modified Plans for Tax Lncrement Financing Districts"A-3" and "B-3" are consistent with the general plans for the development of the City as a vvhole. Section 4. Findin.~s Tax Increment Financing Districts "A-4" and "B-4". 4.01 Tax Increment Financing Districts "A-4" and "B'4", which are hereby established in the Project Areas, are redevelopment Tax Increment Financing Districts within the meaning of Section 469.174, subd. 10 (a) (1) of the-TIF Act. 4,02 It is found and determined that it is necessary and desirable to the sound and orderly development and redevelopment of the Project Areas and the City as a whole, anal for the protection and preservation of the public health, safety and general welfare that the authority of the TIF Act be exercised by the Authority and the City to provide public financial assistance within the Project Areas. 4.03 It is further found and determined, and it is the reasoned opinion of the Authority and the City, that the redevelopment proposed in the Plans for Tax Increment Financing Districts "A-4" and "B-4" could not reasonably be expected to occur solely through private investment within the reasonable foreseeable future and that the increase in market value of each site that could reasonably be expected to-occur without the use of tax increment financing would be less than the increase. in market value estimated to result from teh proposed redevelopment of each site, after subtracting the present value of the projected tax increment for the 25 year duration of the TIF District: The basis for this conclusion is a report prepared by staff analyzing each site with regard to this matter therefore the use of tax increment financing is necessary. ~~ 4.04 The Plans for Tax Increment Financing Districts "A-4" and "B-4" conform to the general plan for redevelopment: of the City as a whole. 4.05 The proposed public improvements to be financed largely through tax increment financing are necessary to permit the City to realize the full potential of the Project Areas in terms of development intensity, employment opportunities and tax base. Section 5. Plans Modified; Districts Established; Certification: Filing. 5.01 The Plans are hereby approved and adopted. 5.02 A copy of the staff report and findings, including the report required to comply with Minnesota Statutes, Section 469.175, subd. 3 and .the finding which was the basis upon which the Authority and City concluded that Tax Increment Financing Districts "A-4" and "B-4" qualified asredevelopment tax increment financing districts shall be retained by the Authority for the duration of the TIF districts. 5.03 The Authority is requested to file a copy of the Plans with the Minnesota commissioner of revenue as required by the TIF-Act.. 5.04 The Authority intends to request that the City assist from time to time in financing the. public redevelopment costs identified in the TIF Plans from, capital proceeds from land sale, tax increment from the TIF districts, development account fund revenue, and other revenues. 5.05 The Authority also intends to request that the City from time to time consider various other actions necessary to the implementation of .the Plans and pledges its cooperation with the City in achieving the objectives of the Plans. 5.06 The City Clerk is authorized and directed to transmit a certified copy of this .resolution to the Authority. Passed. this 10th day of July, 1995 by the City Council of the City or Richfield, Minnesota Martin Kirsch, Mayor ATTEST: Thomas P Ferber, City Clerk THE RICHFIELD REDISCOVERED HOUSING PROGRAM 1995 REDEVELOPMENT PLANS AND TAX INCREMENT FINANCING PLANS Housing and Redevelopment Authority in and for the City of Richfield, Minnesota MAYOR Martin J. Kirsch CITY COUNCII. Michael Sandahl, Council Member At Large Susan Rosenberg, Ward 1 Russ Susag, Ward 2 Donald Priebe, Ward 3 HOUSING AND REDEVELOPMENT AUTHORITY Thomas Harms, Chairperson Joan Helmberger, Vice-Chairperson Vern Luettinger, Secretary Russ Susag, Member Michael Sandahl, Member CITY MANAGER/EXECUTIVE DIRECTOR games D. Prosser PLANNING CObIlVIISSION Daniel Linnihan, Chairperson Kristal Stokes, Vice Chairperson Timothy Erlander, Secretary Pamela Dmytrenko, Member David Gepner, Member Mitchell Hadley, Member Kevin Hansen, Member Dawn Postudensek, Member Paul Wasko, Member CITY STAFF Byron Wallace Director, Community Development Bruce Palmborg Housing & Redevelopment Coordinator Katia Medvetski Redevelopment Specialist Bruce Nordquist Housing Supervisor Pamela Rohne Rehabilitation Specialist CONSULTANTS John B. Dean Ronald L. Batty HRA Legal Counsel Holmes & Graven, Chartered Minneapolis, MN Sidney Inman Mark Ruff Publicorp, Inc. Minneapolis, MN NOTE TO READER The text contained within the following modified housing program maintains the goals and objectives set forth in earlier program editions. Substantive changes to the current housing program include an updated list of properties identified for acquisition and program implementation as well as changes in the budget, calculation of tax increment, and estimate of impacts to various taxing jurisditions. The reader is encouraged to review the original housing progam plans and prior plan modifications. -lla~l~~ No'r~; -fihe a~-~-u.~ ~ (are ~ G~s ~ o i s ~cxnn~c~. =~ iS o~vc~ i 1 ab (~e. ~ro~ C~vrrYr~ ~ ~y ~~.v e-l o pr>1~n`~" The Housing and Redevelopment Authority in and for The City of Richfield, Minnesota Modification No. 4 to the Redevelopment Plan for Redevelopment Project Area "A" Modification No. 1 to the Taz Increment Financing Plan for Taz Increment Redevelopment District "A-3" Taz Increment Financing Plan for Taz Increment Redevelopment District "A-4" All Related to the Richfield Rediscovered Housing Program Dated: May 15, 1995 Prepared By: The City of Richfield Department of Community Development Housing and Redevelopment Division 6700 Portland Avenue South Richfield, MN 55423 (612) 861-9760 Modification No. 4 to the Redevelopment Plan for Redevelopment Project Area "A" TABLE OF CONTENTS Part L Richfield Rediscovered Housing Program Modification No. 4 Redevelopment Plan for Redevelopment Project Area "A" PART I - REDEVEI:OPMENT PLAN Original Plan Pa a Modification No. 4 Pa e A. Statement of Public Pu ose 1 - - - B. Statuto Authori 1 - - - C. Descri tion of Redevelo meat Project Area 2 - - - D. Statement of Goals and Ob'ectives 3 - - - E. Develo went Activities and A eements 4 - - - F. Pro osed Land Use 6 - - - G. Ac uisition and Relocation Activities 6 A-1 H. Environmental Considerations '1 - - - I. Redevelo ment Plan Modification 7 - - - J. Administration of Redevelo went Project 7 - - - A-i Part L Modification No. 4 Redevelopment Plan for Redevelopment Project Area "A" ~_ G. Acquisition and Relocation Activities 1. Acquisition In furthereance of the Richfield Rediscovered Housing Program, I-iRA staff maintained standards set forth in prevous years to identify property for acquisition. In its sequential numbering system, this is Cycle IV in the housing program. As in the past, residential property owners were contacted and surveyed to determine (a.) whether or not they continued to express an interest in selling their property on a voluntary basis and (b.) if interested, within which time frame. Additional means of obtaining candidate properties were made by (a.) property owners contacting the HRA requesting that their property be considered for the program and (b.) referrals by the city's health and inspections department. Candidate properties were further evaluated for program eligibility and inspected. The following properties are identified for acquisition under Cycle IV of the program: PROPERTY ADDRESS PID NUMBER 6345 -Bloomin ton Ave. 26-028-24-11-0025 6437 -Bloomin ton Ave. 26-028-24-14-0088 7429 - Du ont Ave. '~ 33-028-24-41-0076 7037 -Oakland Ave So. 35-028-24-22-0042 6629 -Portland Ave. 26-028-24-32-0045 7216 -1st Ave." 34-028-24-13-0094 6616 - 2nd Ave.* 27-028-24-42-0064 7241 - 2nd Ave. 34-028-24-13-0150 6812 -13th Ave. 26-028-24-43-0022 6237 -14th Ave. 26-028-24-12-0069 6349 -14th Ave. 26-028-24-12-0087 6438 -15th Ave. 26-028-24-13-0061 6533 -15th Ave. 26-028-24-13-0108 6320 -16th Ave. 26-028-24-11-0017 6400 -16th Ave. 26-028-24-14-0076 7525 -Aldrich Ave So.* 33-028-24-41-0164 7537 -Emerson Ave So. 33-028-24-42-0132 6833 -Grand Ave So. 27-028-24-33-0070 7300 -Portland Ave So. 34-028-24-14-0015 7304 -Portland Ave. So. 34-028-24-14-0016 7520 -Portland Ave So." 34-028-24-41-0021 6609 - 2nd Ave So. 27-028-24-42-0056 6914 -13th Ave So. 26-028-24-43-0076 Al PROPERTY ADDRESS PID NUMBER 6329 -14th Ave So. 26-028-24-12-0091 6408 -14th Ave So. 26-028-24-13-0117 6432 -15th Ave So.* 26-028-24-13-0059 506 - E. 67th St. 27-028-24-41-0014 6507 -Bloomin ton Ave. 26-028-24-14-0116 6600 -Columbus Ave. 26-028-24-32-0004 7025 - Nicollet Ave.* 34-028-24-12-0022 6620 - 5th Ave. 27-028-24-41-0028 6915 -13th Ave. 26-028-24-43-0064 6326 -14th Ave. 26-028-24-12-0140 6928 -14th Ave.* 26-028-24-43-0069 6217 -15th Ave. 26-028-24-12-0058 6220 -15th Ave. 26-028-24-12-0060 6508 -Bloomin ton Ave 26-028-24-13-0097 7027 -Columbus Ave So. 35-028-24-22-0001 7329 -Girard Ave So. 33-028-24-13-0057 6816 -Pleasant Ave So. 27-028-24-33-0061 6820 -Pleasant Ave So. 27-028-24-33-0062 6820 -Portland Ave So.* 27-028-24-44-0006 7415 - 3rd Ave So. + 34-028-24-41-0088 6945 -14th Ave So. 26-028-24-43-0013 6525 -15th Ave. So. 29-028-24-13-0110 6428 -16th Ave So. 26-028-24-14-0081 *Property moved from Cycle III acquisition list to the Cycle IV acquisition list. +Double lot. "Early acquisition. Under Cycle IV, the property listed in the following table (formerly part of the Cycle III property list) is hereby removed from the acquisition list for Redevelopment Project Area A. This property may be considered for future program acquisition. (Also note that this property is identified for removal from the list of properties for Tax Increment District "A-3 "). PROPERTY ADDRESS PID NUMBER 6900 -13th Ave. 26-028-24-43-0073 6321 -14th Ave. 26-028-24-42-0093 6435 -15th Ave. 26-028 24-13-0043 6504 -15th Ave. 26-028-24-13-0076 6825 -Elliot Ave. 26-028-24-34-0085 7211 -Portland Ave. + 35-028-24-23-0002 6608 -Stevens Ave. 27-028-24-42-0073 +Double lot. A-2 Modification No. 1 to the Taz Increment Financing Plan for Taz Increment Redevelopment District "A-3" TABLE OF CONTENTS Part. IL Richfield Rediscovered Housing Program Modification No. 1 Tag Increment Financing Plan for Tag Increment Redevelopment District "A-3" PART I -TAX INCREMENT PLAN Original Plan Pa a Modification No. 1 Pa e A. Statuto Authori 7 - - - B. Statement of Ob'ectives 7 - - - C. Develo went Pro ram 7 - - - D. Description of Property in the Tag Increment Financin District 9 A-3-1 E. Classification of the Tag Increment Financin District 9 - - - F. Parcels in Ac uisition 10 A-3-1 G. Estimate of Costs 11 - - - H. Estimated Amount of Obli ated Funds 11 - - - L Sources of Revenue 11 - - - J. Ori final Tag Ca aci 12 - - - K. Estimated Ca tured Taa Ca aci 12 - - - L. Duration of the District 12 - - - M. Estimated Im act on Other Tagin Jurisdictions 13 - - - N. Modifications of the Tag Increment Financin District 13 - - - O. Limitation on Administrative Eg eases 13 - - - P. Limitation on Duration of Tag Increment Financing Districts 13 - - - Q. Limitation on Qualification of Property in Increment District not Sub'ect to Im rovement 13 - - - R. Limitation of the Use of Tag Increment 14 - - - S. Notification of Prior Planned Im rovements 14 - - - T. Excess Tag Increment 15 - - - U. Restrictions on Poolin ;Five Year Limit 15 - - - V. Assessment A regiments 17 - - - W. Administration of the Taa Increment Financing District and Maintenance of the Tag Increment Account 17 - - - X. Annual Disclosure Re uirements 18 - - - Y. Assum tions 18 - - - Z. Munici al Findin s 18 - - - A-3-i Modification PART II -TAX INCREMENT PLAN Original Plan No. 1 Pa a Pa e A endia A: Ma - Redevelo went Pro'ect Area "A" 23 - - - Appendia B: Property in the Tax Increment Redevelopment District "A-3" 25 A endix A-3-1 A eudia C: Estimate of Tax Increments 26 - - - A endia D: Tax Increment Financin Bud et 27 - - - Appendia E: Estimate of Impacts on Other Taxing Jurisdictions 28 - - - A-3-ii Part L Modification No. 1 Taa Increment Financing Plan for Taa Increment Redevelopment District "A-3" D. Description of Property in the Taa Increment Financing District The property listed within Appendix B is the final list of property which was acquired for program purposes. See "Section F. Parcels in Acquisition" below for properties removed from the acquisition list due to unresponsiveness or undesire to further participate in the program. F. Parcels in Acquisition The properties listed below (formerly part of the Cycle III property list) have been identified for removal from the acquisition list and from TIF District "A-3". The removal of this property is a program objective under Cycle IV of the Richfield Rediscovered Housing Program. This property may be considered for program acquisition at some future date and incorporated back into the Richfield Rediscovered Program under a separate program modification. PROPERTY ADDRESS PID NUMBER 6900 -13th Ave. 26-028-24-43-0073 6321 -14th Ave. 26-028-24-12-0093 6435 -15th Ave. 26-028-24-13-0043 6504 -15th Ave. 26-028-24-13-0076 6825 -Elliot Ave. 26-028-24-34-0085 7211 -Portland Ave. + 35-028-24-23-0002 6608 -Stevens Ave. 27-028-24-42-0073 +Double lot. A-3-1 APPENDIX B FINAL LIST OF PROPERTY LOCATED IN TAX INCREMENT FINANCING DISTRICT "A-3" PROPERTY ADDRESS PID NUMBER ORIGINAL NET TAX CAPACTTY* 7416 = 4th Ave. 34-028-24-41-0053 $ 680 6500 -14th Ave. 26-028-24-13-0132 $ 590 6404 -15th Ave. 26-028-24-13-0052 $ 470 7344 - B ant Ave. 33-028-24-14-0047 $ 560 6828 -Elliot Ave. 26-028-24-34-0135 $ 530 7525 -Girard Ave. 33-028-24-42-0094 $ 550 7537 -Girard Ave. 33-028-24-42-0091 $ 487 6625 -Stevens Ave. 27-028-24-42-0095 $ 490 *Original net tax capacity shown represents values of record for taxes payable in 1994, as stated in the 1994 plans. Appendix A 3-1 Taz Increment Financing Plan for Taz Increment Redevelopment District. "A-4" TABLE OF CONTENTS Part II. Richfield Rediscovered Housing Program Taz Increment Financing Plan for Tag Increment Redevelopment District "A-4" PART I -TAX INCREMENT PLAN Page No. A. Statuto Authori A-4-1 B. Statement of Ob'ectives A-4-1 C. Develo ment Pro ram A-4-1 D. Descri tion of Pro a in the Tag Increment Financin District A-4-2 E. Classification of the Tag Increment Financin District A-4-2 F. Parcels in Ac uisition A-4-3 G. Estimate of Costs A-4-4 H. Estimated Amount of Obli ated Funds A-4-4 L Sources of Revenue A-4-4 J. Ori final Tag Ca aci A-4-5 K. Estimated Ca tured Tag Ca aci A-4-5 L. Duration of the District A-4-5 M. Estimated Im act on Other Tagin Jurisdictions A-4-5 N. Modifications of the Tag Increment Financin District A-4-6 O. Limitation on Administrative Eg enses A-4-6 P. Limitation on Duration of Tag Increment Financin Districts A-4-6 Q. Limitation on Qualification of Property in Increment District not Sub'ect to Im rovement A-4-6 R. Limitation of the Use of Taz Increment A-4-7 S. Notification of Prior Planned Im rovements A-4-7 T. Excess Tag Increment A-4-7 U. Restrictions on Poolin ;Five Year Limit A-4-8 V. Assessment A reements A-4-9 W. Administration of the Tag Increment Financing District and Maintenance of the Tag Increment Account A-4-10 X. Annual Disclosure Re uirements A-4-10 Y. Assum tions A-4-11 Z. Munici al Findin s A-4-11 A-4-i PART I I -TAX INCREMENT PLAN Page No. A endix A: Ma - Redevelo ment Pro'ect Areas "A" and "B" A endix A-4-1 Appendix B: Property in the Tax Increment Redevelopment District "A-4" A endix A-4-3 A endix C: Estimate of Tax Increments A endix A-4-5 A endix D: ~ Tax Increment Financin Bud et A endix A-4-6 Appendix E: Estimate of Impacts on Other Taxing Jurisdictions A endix A-4-7 A-4-ii Part II. Taz Increment Financing Plan for Taz Increment Redevelopment District "A-4" A. Statutory Authority The statutory authority for the undertaking of a tax increment financing district (TIF District "A-4") and related Tax Increment Financing Plan (Tax Increment Plan) in Redevelopment Project Area "A" (Project Area "A") for the Richfield Rediscovered Housing Program (Housing Program) and the activities proposed in the tax increment plan relating thereto is conferred upon the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA), pursuant to and in accordance with the Tax Increment Financing Act, IVlinn. Stat., Sec. 469.174 to 469.179, inclusive, as amended. B. Statement of Objectives The HRA and the City continue to seek and affirm the goals and objectives set forth in Part I of the Redevelopment Plan for Redevelopment Project Area "A", dated July 16, 1990 as well as additional program objectives set forth in HRA Letter No. 13, dated April 20, 1992. C. Development Program 1. Description of Development Activities As with previous cycles of the housing program and so with Cycle IV, a comprehensive, integrated approach for acquisition, site clearance, and new construction will continue to be provided through program guidelines. The HRA will assist prospective developers, builders, and buyers with development, redevelopment, new construction, and other related activities within the context of the modified Redevelopment Plan for Redevelopment Project Area "A", this Tax Increment Plan, and other related guidelines. 2. Development Activities .Covered by Contract At this writing, early negotiations for property acquisition is proceeding between HRA staff and owners for one property. Early acquisition has already occurred on one property. Any and all development contracts which may arise in the interim processing period of these plans, both modified and new, will be contingent upon HRA Board and City Council approval. A-4-1 3. Other Develoament Not Uhder Contract Reasonably Eaaected to Occur in the Proiect• Proposals from prospective developers, builders, and buyers will be required to be submitted to the HRA as part of the review process. The following activities may be expected to occur: 1. Property Acquisition;- 2. On-site clearance; 3. On-site improvements; 4. New construction; 5. Remedial site environmental activities; and 6. Adjacent public improvements and utilities which service site. For Cycle IV of the Housing Program, a total of 71 properties have been identified for program participation and acquisition.. Forty six (46) of the properties are located within Redevelopment Project Area "A" while the remaining 25 are within Redevelopment Project Area "B". (Refer to Appendix A for map of Redevelopment Project Areas and tax increment parcels.) Redevelopment Project Areas A and B each contain one property with a double lot. Property subdivisions will be required for these lots in order to construct two homes on each site. Initial construction for Cycle IV is anticipated to begin in the summer of. Construction for each home is anticipated to be approximately 120 days. Timing of construction is contingent upon favorable market conditions, reasonable time period for processing applications and availability of funding revenue. D. Description of Property in the Taz Increment Financing District Property located within TIF District "A-4" is identified in Appendix B. E. Classification of the Taa Increment Financing District The Richfield HRA and City Council, in determining the need for a tax increment financing district in accordance with Minn. Stat., Sec. 469.174 to 469.179, inclusive, as amended, find that Tax Increment District "A-4" to be established within Project Area "A" is a redevelopment tax increment financing district as defined in Minn. Stat., Sec. 469.174, subd. 10. Since the tax increment parcels within the scattered site program are non-contiguous, each parcel has been examined by staff against the statutory definitions of structurally substandard and other blight definitions. Each structure has qualified under 1vlinn. Stat., Sec. 469.174, subd. 10. Thus, the tax increment financing district meets the requirements of a redevelopment tax increment financing district. A-4-2 _ A detailed account of property examination for eligibility are enumerated within a document entitled "Richfield Rediscovered Housing Program: Blight Qualification Survey -Cycle IV" which will be on file at City Hall, Community Development Department, Housing and Redevelopment Division, for the duration of the tax increment district's life. F. Parcels in Acquisition The following property has been identified for acquisition in TIF District A-4, Cycle IV of the Housing Program: PROPERTY ADDRESS PID NUMBER 6345 -Bloomin ton Ave. 26-028-24-11-0025 6437 -Bloomin ton Ave. 26-028-24-14-0088 7429 - Du ont Ave. ~-+ 33-028-24-41-0076 7037 -Oakland Ave So. 35-028-24-22-0042 6629 -Portland Ave. 26-028-24-32-0045 7216 -1st Ave." 34-028-24-13-0094 6616 - 2nd Ave." 27-028-24-42-0064 7241 - 2nd Ave. 34-028-24-13-0150 6812 -13th Ave. 26-028-24-43-0022 6237 -14th Ave. 26-028-24-12-0069 6349 -14th Ave. 26-028-24-12-0087 6438 -15th Ave. 26-028-24-13-0061 6533 -15th Ave. 26-028-24-13-0108 6320 -16th Ave. 26-028-24-11-0017 6400 -16th Ave. 26-028-24-14-0076 7525 -Aldrich Ave So.* 33-028-241-0164 7537 -Emerson Ave So. 33-028-24-42-0132 6833 -Grand Ave So. 27-028-24-33-0070 7300 -Portland Ave So. 34-028-24-14-0015 7304 -Portland Ave. So. 34-028-24-14-0016 7520 -Portland Ave So.* 34-028-24-41-0021 6609 - 2nd Ave So. 27-028-24-42-0056 6914 -13th Ave So. 26-028-24-43-0076 6329 -14th Ave So. 26-028-24-12-0091 6408 -14th Ave So. 26-028-24-13-0117 6432 -15th Ave So." 26-028-24-13-0059 506 - E. 67th St. 27-028-24-41-0014 6507 -Bloomin ton Ave. 26-028-24-14-0116 6600 -Columbus Ave. 26-028-24-32-0004 7025 - Nicollet Ave." 34-028-24-12-0022 6620 - 5th Ave. 27-028-24-41-0028 A-4-3 PROPERTY ADDRESS PID NUMBER 6915 -13th Ave. 26-028-24-43-0064 6326 -14th Ave. 26-028-24-12-0140 6928 -14th Ave.* 26-028-24-43-0069 6217 -15th Ave. 26-028-24-12-0058 6220 - 15th Ave. 26-028-24-12-0060 6508 - Bloomin ton Ave 26-028-24-13-0097 7027 -Columbus Ave So. 35-028-24-22-0001 7329 -Girard Ave So. 33-028-24-13-0057 6816 -Pleasant Ave So. 27-028-24-33-0061 6820 -Pleasant Ave So. 27-028-24-33-0062 6820 -Portland Ave So.* 27-028-24-44-0006 7415 - 3rd Ave So. + 34-028-24-41-0088 6945 -14th Ave So. 26-028-24-43-0013 6525 - 15th Ave. So. 29-028-24-13-0110 6428 -16th Ave So. 26-028-24-14-0081 *Property moved from Cycle III acquisition list to the Cycle IV acquisition list. +Double lot. 'Early acquisition. The tax increment district budget includes acquisition costs for land sale subsidy which will be offered to eligible developers, builders, and buyers as development incentives. G. Estimate of Costs The estimate of public costs associated with the tax increment district are outlined in the budget listed in Appendix D. H. Estimated Amount of Obligated Funds At the current time, $750,000 of program revenue is anticipated to be alloted to Cycle IV in order to continue with the housing program. An estimate of the amount of bonded indebtedness for redevelopment is expected to be $0. The term of the issues is 0 years including 0 years of capitalized interest with an anticipated taxable interest rate of 0%. The amount of capitalized interest is estimated to be $0. L Sources of Revenue The primary source of revenue to be used to finance public costs associated with proposed developments in the redevelopment project area is an allocation from the development account. A-4-4 In addition to this allocation, other sources of revenue potentially available to the I-iRA and City may be utilized. J. Original Taz Capacity Pursuant to Minn. Stat., Sec. 469.175, subd. 1 and Sec. 469.177, subd. 1, the Original Net Tax Capacity (OTC) for TIF District "A-4" is based on the January 2, 1994 assessed value placed on the property by the county assessor. The OTC for the district is $29,550. (See Appendix B, Property Located in Tax Increment Financing District "A-4".) Each year the office of the county auditor will measure the amount of increase or decrease in the total net tax capacity of the tax increment district to calculate the tax increment payable to the redevelopment district fund. In any year in which there is an increase in total net tax capacity. in the tax increment district above the original net tax capacity, a tax increment will be payable. In any year in which the total net tax capacity in the tax increment district declines below the original net tax capacity, no tax capacity will be captured and no tax increment will be payable. The county auditor shall certify in each year after the date the original net tax capacity was certified, the amount the OTC has increase or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the. geographic boundaries of the district; or 3. Change due to stipulations, adjustments, negotiated or court-ordered abatements. K. Estimated Captured Taz Capacity Pursuant to Minn. Stat., Sec. 469.175, Subd. 1 and Iviinn. Stat., Sec. 469.177, subd. 2, the estimated captured net tax capacity (CTC) of Tax Increment District "A-4" is within a range of $429 to $1,694 per home. The total CTC for the full build-out of 46 potential new homes to be located within Redevelopment Project Area "A" ranges from $19,734 to $77,924. As a result of the improvements to be constructed, it is expected that the estimated captured net tax capacity will be available for the housing program. It is also anticipated that this amount will be captured not more than 25 years. (See Appendix C, Estimate of Tax Increments.) L. Duration of the District Pursuant to Minn. Stat., Sect. 469.176, subd. 1, the maximum duration of a redevelopment tax increment district is 25 years. The HRA elects to capture 100% of the tax increments for the duration of the district. M. Estimated Impact on Other Tazing Jurisdictions Refer to Appendix E, Estimate of Impacts on Other Taxing Jurisdictions. A-4-5 N. Modifications of the Taz Increment Financing District All tax increment plan modifications will be processed in accordance with IViinn. Stat., Sec. 469.175, subd. 4. The modifications pertaining to the necessary processing include any reduction or enlazgement of the geographic azea of the project or tax increment financing district; increase in amount of bonded indebtedness to be incurred, including a determination of capitalized interest on debt if that determination was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized; increase in the portion of the captured tax capacity to be retained by the HRA; increase in total estimated tax increment expenditures or designation of additional property to be acquired by the HRA shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original plan. The geographic area of a tax increment district may be reduced, but shall not be enlazged after five yeazs following the date of certification of the original tax capacity by the County Auditor. O. Limitation on Administrative Ezpenses In accordance with Minn. Stat., Sec. 469.174, subd. 14, and Minn. Stat., Sec. 469.176, subd. 3, for districts for which certification was requested after June 30, 1982, no tax increment shall be used to pay any administrative expenses for a project which exceed ten percent of the total tax increment expenditures authorized by the tax increment financing plan or the total tax increment expenditures for the project, whichever is less. P. Limitation on Duration of Taz Increment Financing Districts Pursuant to Minn. Stat., Sec. 469.176, subd. 1, the HItA must issue bonds, or acquire property, or construct or cause public improvements to be constructed within three yeazs of the date of certification of the tax increment district my the county auditor: Q. Limitation on Qualification of Property in Taz Increment District Not Subject to Improvement Pursuant to Minn. Stat., Sec. 469.176, subdivision 6, "if, after four yeazs from the date of certification of the original net tax capacity of the tax increment financing district..., no demolition, rehabilitation or renovation of property or other site prepazation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has .been commenced on a parcel located within a tax increment financing district by the HRA or by the owner of the pazcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel, and the original net tax capacity of the tax increment financing district. If the HRA or the owner of the pazcel subsequently commences demolition,- rehabilitation or renovation or other site preparation on that pazcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the HItA shall certify to the county auditor that the activity has commenced, and the county auditor shall certify the net tax capacity thereof most recently A-4-6 certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district." R Limitation of the Use of Taz Increment All revenues derived from tax increment shall be used in accordance with the tax increment financing plan. The revenues shall be used to finance or otherwise pay public redevelopment costs pursuant to Minn. Stat., 469.001 to 469.047, inclusive, as amended. These revenues shall not be used to circumvent existing levy limit law. No revenues derived from tax increment shall be used for the construction or renovation of a municipally owned building used primarily and regularly for conducting the business of the municipality. This provision shall not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure, a commons area used as a public park or a facility used for social, recreational or conference purposes and not primarily for conducting the business of the municipality. Pursuant to 1Vfinn. Stat., Sec. 469.176, subd. 4j, at least 90 percent of the revenues derived from tax increments from a redevelopment district must be used to finance the cost of correcting conditions that allow designation of a redevelopment district under section 469.174. These costs include acquiring properties containing structurally substandard buildings or improvements, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition of structures, clearing of the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the authority maybe included in the qualifying costs. S. Notification of Prior Planned Improvements Pursuant to Minn. Stat., Sec. 469.177, subd. 4, the HRA will review and search property files for properties to be included in the tax increment district and to identify those properties for which building permits have been issued during the 18 months immediately proceeding approval of the tax increment financing plan by the City. T. Ezcess Taz Increments Pursuant to Minn. Stat., Sec. 469.176, subd. 2, in any year in which the tax increment exceeds the amount necessary to pay the costs authorized by the tax increment plan, including the amount necessary to cancel any tax levy as provided in 1Vlinn. Stat., Sec. 475.61, subd. 3, the HRA shall use the excess amount to: 1. Prepay the outstanding bonds; 2. Discharge the pledge of tax increment therefor; 3. Pay into an escrow account dedicated to the payment of such bond; 4. Repay any loans including interest on these loans; or 5. Return the excess to the county auditor. for redistribution to the respective taxing jurisdictions in proportion to their tax capacity rates. A-4-7 The amounts distributed to a city or county must be deducted from the levy limits of the governmental unit for the following year. In calculating the levy limit base for later years, the amount deducted must be treated as a local government aid payment. For the purpose of this tax increment financing plan, excess tax increment means that increment received in any year which is in addition to the amount needed to satisfy the HRA's current financial obligations or commitments, as specified in the tax increment financing budget listed in Appendix D, or which is in addition to that which is placed in a separate account for the purpose of accumulating funds needed to satisfy those financial obligations or commitments in the future. U. Restrictions on Pooling; Five-Year Limit In accordance with Minn. Stat., Sec. 469.1763, the following terms have the meanings given: "Activities" means acquisition of property, clearing of land, site preparation, soils correction, removal of hazardous waste or pollution,. installation of utilities, construction of public or private improvements, and other similar activities, but only to the extent that tax increment revenues may be spent for such purposes under other law. Activities do not include allocated administrative expenses, but do include engineering, architectural, and similar costs of the improvements in the district. "Third Party" means an entity other than (1) the person receiving the benefit of assistance financed with tax increments, or (2) the municipality or the development authority or other person substantially under the control of the municipality. Pursuant to Minn. Stat., Sec. 469.1763, subd. 2 with respect to expenditures outside the district: (a) For each tax increment financing district, an amount equal to at least 75 percent of the revenue derived from tax increments paid by properties in the district must be expended on activities in the district or to pay bonds, to the extent that the proceeds of the bonds .were -used to finance activities in the district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 25 percent of the revenue derived from tax increments paid by properties in the district may be expended, through a development fund or otherwise, on activities outside of the district but within the defined geographic area of the project except to pay, or secure payment of, debt service on credit enhanced bonds. The revenue derived from tax increments for the district that are expended on costs under section 469.176, subdivision 4h, paragraph (b), maybe deducted first before calculating the percentages that must be expended within and without the district. A-4-8 Pursuant to Minn. Stat., Sec. 469.173, subd. 3 with respect to the five-year rule: (a) Revenues derived from tax increments are considered to have been expended on an activity within the district under subdivision 2 only if one of the following occurs: (1) before or within five years after certification of the district, the revenues are actually paid to a third party with respect to the activity; (2) bonds, the proceeds of which must be used to finance the activity, are issued and sold to a third party before or within five years after certification and the revenues are spent to repay the bonds; (3) binding contracts with a third party are entered into for performance of the activity before or within five years after certification of the district and the revenues are spent under the contractual obligation; or (4) costs with respect to the activity are paid before or within five years after certification of the district and the revenues are spent to reimburse a party for payment of the costs. (b) For purposes of this subdivision, bonds include subsequent refunding bonds if one of two tests is met: (1) the proceeds of the original refunded bonds were spent on activities within five years after the district was certified or (2) the original refunded bonds are issued within five years after the district was certified and the proceeds are expended on activities within a reasonable temporary period within the meaning of the use of that term under section 148(c)(1) of the Internal Revenue Code. Pursuant to Minn. Stat., Sec. 469.173, subd. 4 with respect to use of revenues for decertification: Beginning with the sixth year following certification of the district, 75 percent of the revenues derived from tax increments paid by properties in the district that remain after the expenditures permitted under subdivision 3 must be used only to pay outstanding bonds, as defined in subdivision 3, paragraph (a), clause (2), and paragraph (b) or contracts, as defined in subdivision 3, paragraph (a), clauses (3) and (4). When the outstanding bonds have been defeased and when sufficient money has been set aside to pay contractual obligations as defined in subdivision 3, paragraph (a), clauses (3) and (4), the district must be decertified and the pledge of tax increment discharged. V. Assessment Agreements Pursuant to 1VIinn. Stat., Sec. 469.177, subd. 8, the HRA may enter into an agreement in recordable form with a developer or redeveloper of property within the tax increment district which establishes a minimum market value of the tax increment district. The assessment A-4-9 agreement shall be presented to the county assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and so long as the minimum market value contained in the assessment agreement appears in the judgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market value agreement. W. Administration of the Tag Increment District and Maintenance of the Tag Increment Account Administration of the tax increment district will be the responsibility of the Richfield Housing and Redevelopment Authority. The tax increment received as a result of increases in the net tax capacity of the tax increment district will be maintained in a special account separate from all other HRA and municipal accounts and expended only upon sanctioned activities identified in the tax increment financing plan. X. Annual Disclosure Requirements Pursuant to Minn. Stat., Sec. 469.175, subd. 6a, on or before March 1 of each year, the HRA must annually report to the commissioner of revenue the following: 1. Total principal amount of nondefeased tax increment financing bonds that are outstanding at the end of the previous calendar year; and 2. Total annual amount of principal and interest payments that are due for the current calendar year on (i) general obligation tax increment financing bonds, and (ii) other tax increment financing bonds. Also in accordance with this requirement the HRA must annually report to the commissioner of revenue the following amounts for the tax increment financing district: 1. Type of district; 2. Date on which the district is required to be decertified; 3. Captured net tax capacity of the district, by property class as specified by the commissioner of revenue, for taxes payable in the current calendar year; 4. Tax increment revenues for taxes payable in the current calendar year; 5. Whether the tax increment financing plan or other governing document permits increment revenues to be expended (i) to pay bonds, the proceeds of which were or maybe expended on activities located outside of the district, (ii) for deposit into a common fund from which money maybe expended on activities located outside of the A-4-10 district, or (iii) to otherwise finance activities located outside of the tax increment financing district; and 6. Any additional information that the commissioner of revenue may require. Y. Assumptions It was necessary to make certain assumptions regarding income, costs and timing of the tax increment~financing district. These assumptions are based on discussions with the HRA, City, and County staff, and. consultants. . Z. Municipal Findings Pursuant to 1Vlinn. Stat., Sec. 469.175, subd. 3, before or at the time of approval of the tax increment financing plan, the municipality shall make the following findings and shall set forth in writing the reasons and supporting facts for each determination: 1. The Tax Increment Financing District is a redevelopment district pursuant to Minn. Stat., Sec. 469.174, subd. 10. It has been determined that parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities or other improvements and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. Specifically, staff has examined each parcel against the statutory definitions of structurally substandard and other blight definitions due to the non-contiguous nature of the tax increment parcels. Each structure has qualified under Minn. Stat., Sec. 469.174, subd. 10. Thus, the tax increment financing district meets the requirements of a redevelopment tax increment financing district. A detailed account of property examination for eligibility are enumerated within a document entitled Richfield Rediscovered Housing Program: Blight Qualification Survey -Cycle IV" which will be on file at City Hall, Community Development Department, Housing and Redevelopment Division ,-for the duration of the tax increment district's life. 2. The proposed activities listed in this plan, in the opinion of the HRA, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. Therefore, the use of tax increment financing is deemed necessary since the proposed development requires certain necessary planning, property assembly and other improvements without which interested developers, builders, or buyers could not construct the aforementioned improvements; and without the use of tax increments or other revenues authorized by this plan to assist with the financing of the activities, interested developers, builders, or buyers would not proceed with redevelopment in the redevelopment project area. 3. The tax increment financing plan conforms to the general plan for the development of the City as a whole as it will result in the continuation of the Richfield Rediscovered Housing Program for the development, redevelopment, new construction and other A-4-11 related improvements of residential homes for which there is limited sources of revenue available. 4. The tax increment financing plan will afi'ord maximum opportunity, consistent with the sound needs of the City as a whole, for the development by private enterprise as it will enable the HRA to provide the necessary redevelopment for the project area and City, as a whole, in a planning manner suitable to both the public and private sectors. A-4-12 APPENDICES RICHFIELD REDISCOVERED HOUSING PROGRAM REDEVELOPMENT PROJECT AREA "A" AND TAX INCREMENT FINANCING DISTRICT "A-4" APPENDIX A MAP REDEVELOPMENT PROJECT AREAS "A" AND "B" Appendix A-4-1 r u 0~ £Z NSIO Ntl15 VV ZZ Is IZ Vt02 4t 61 MOll3i9NOl 3Atl atl031 VI BI VI 11 V191 N019NIwOOlB 41 SI Vl bl 41 £1 VI ZI VI II V{01 101113 G9tl'JIN~ snewnloJ xtl Vd ONtl lxtlO 3AV ONtllltlOa VIS 41t NO1NI l: Dpi v~~ S N3A31! If '3Atl 13llOUll 1130S1V1f NLtlOM1N3A AanBSlll 1N VStl3l ONtla .31aatl~ Ul3liatl -3AV 3lVONA Nalaol~ 1NVAH1 x tli lo: 1NOdn1 Nosa3w; 1NOw3a: aatlalc loloewnr 9Nlnai S3 W tlf XONx Ntl00~ Ntl9aUW NO1M3N a3nno 3AV NN3d N33no ll3ssna NtlUla 3N5 StlWONl Nolan 1N3J NIA NanBNSVM 3nv 53xa3x ~ ul i/~ Z i0 ~O - --1 Z Q~ 8 ~ F LL Lia Z O ~ ~ 1^ ~ U r y= ~Va "~ W ~2 Z Mpll3i9NOl '3AV atl03~ VI 81 VI CI 41 91 NOlONIWOOlB VI SI VI bl VI £1 VI ZI VI 11 VI OI loll l3 OOVOINO snewnlo~ xavd UNtl lxVO '3Atl ONtlllaOd VIS VI b NO1 NIl~ S N3A315 •3AV 13llO~IN 1130 SItllB N1tlOM1N3M Aan851l1d 1NtlStl3ld ONtla9 131atltlN Ol31datl0 '3AV 3ltlONAI NOIaOItl 1NtlAae xtrilo~ 1NOdno Nosa3w3 1NOw3ai oatlal9 laloewnN oNlnal s3wtl~ %ONx Ntl001 Ntl9tlOw NO1M3N a 3Ai10 '3AY NN3d N33no ll3ssna Ntl01tl3NS svwolll Noldn LN3~NIA NanBNStlM 3ntl s3xa3x ~ 1- v N Ylp V' r <_~ A O A t~ Q Qi d W H U W ti O ~+ a W W U U] H A W a A W H W x U H P4 !fl 01 ~ y~j H N N YI YI N N 1~(1 N N IA N N ~ Q h ~O ~ ~ O~ O O ~ n N Mf Q xl 10 N ~D ut N n !- r r n A M A APPENDIX B PROPERTY LOCATED IN TAX INCREMENT FINANCING DISTRICT "A-4" PROPERTY ADDRESS PID NUMBER ORIGINAL NET TAX CAPACITY** 6345 -Bloomin ton Ave. 26-028-24-11-0025 $ 550 6437 -Bloomin ton Ave. 26-028-24-1.4-0088 $ 520 7429 - Du ont Ave. ~ 33-028-24-41-0076 $ 540 7037 -Oakland Ave So. 35-028-24-22-0042 $ 660 6629 -Portland Ave. 26-028-24-32-0045 $ 590 7216 -1st Ave." 34-028-24-13-0094 $1,265 6616 - 2nd Ave." 27-028-24-42-0064 $ 530 7241 - 2nd Ave. 34-028-24-13-0150 $ 490 6812 -13th Ave. 26-028-24-43-0022 $ 570 6237 -14th Ave. 26-028-24-12-0069 $ 580 6349 - 14th Ave. 26-028-24-12-0087 $ 580 6438 - 15th Ave. 26-028-24-13-0061 $ 590 6533 -15th Ave. 26-028-24-13-0108 $ 1,242 6320 -16th Ave. 26-028-24-11-0017 $1, 380 6400 -16th Ave. 26-028-24-14-0076 $ 550 7525 -Aldrich Ave So.* 33-028-24-41-0164 $ 590 7537 -Emerson Ave So. 33-028-24-42-0132 $ 580 6833 -Grand Ave So. 27-028-24-33-0070 $ 430 7300 -Portland Ave So. 34-028-24-14-0015 $ 560 7304 -Portland Ave. So. 34-028-24-14-0016 $ 560 7520 -Portland Ave So.* 34-028-24-41-0021 $ 350 6609 - 2nd Ave So. 27-028-24-42-0056 $ 580 6914 -13th Ave So. 26-028-24-43-0076 $ 550 6329 -14th Ave So, 26-028-24-12-0091 $ 490 6408 -14th Ave So. 26-028-24-13-0117 $ 570 6432 -15th Ave So."' 26-028-24-13-0059 $ 530 506 - 67th St. E. 27-028-24-41-0014 $ 550 6507 -Bloomin ton Ave. 26-028-24-14-0116 $ 580 6600 -Columbus Ave. 26-028-24-32-0004 $ 1,725 7025 - Nicollet Ave." 34-028-24-12-0022 $ 989 6620 - 5th Ave. 27-028-24-41-0028 $ 560 6915 - 13th Ave. 26-028-24-43-0064 $ 480 6326 -14th Ave. 26-028-24-12-0140 $ 470 Appendix A-4-3 PROPERTY ADDRESS PID NUMBER ORIGINAL NET TAX CAPACITY* 6928 -14th Ave.* 26-028-24-43-0069 $ 500 6220 -15th Ave. 26-028-24-12-0060 $ .519 6508 - Bloomin ton Ave 26-028-24-13-0097 $ 630 7027 -Columbus Ave So. 35-028-24-22-0001 $ 610 7329 -Girard Ave So. 33-028-24-13-0057 $ 690 6816 -Pleasant Ave So. 27-028-24-33-0061 $ 470 6820 -Pleasant Ave So. 27-028-24-33-0062 $ 650 6820 -Portland Ave So.* 27-028-24-44-0006 $ 630 7415 - 3rd Ave So.+ 34-028-24-41-0088 $ 680 6945 -14th Ave So. 26-028-24-43-0013 $ 640 6525 -15th Ave. So. 29-028-24-13-0110 $ 600 6428 -16th Ave So. 26-028-24-14-0081 $ 600 * Property moved from Cycle III acquisition list to the Cycle IV acquisition list. **Original tax capacity for taxes assessed in 1994 and payable in 1995. +Double lot. Appendix A-4-4 APPENDIX C ESTIMATE OF TAX INCREMENTS AND PROPERTY TAXES FOR TAX INCREMENT FINANCING DISTRICT "A-4" Tax Increment Estimates and Calculations Lower Limit of Range (Per Home) Upper Limit of Range (Per Home) Construction Cost and and Buildin $ 92,000 $160,000 x Sales Ratio 93% 93% Estimated Market Value $ 85,560 $148,800 x Tax Capacity Ratio (Class lA; Property Type R-Homestead: 1.00% of the first $72,000 of assessed value 2.00% of the balance $ 720 $ 271 $ 720 $ 1,536 New Tax Ca aci $ 991 $ 2,256 - Ori 'nal Net Tax Ca aci Av . * $ 562 $ 562 Ca tured Net Taz Ca aci $ 429 $ 1,694 x Tax Capacity (Extension) Rate Taxes Pa able in 1995 140.669% 140.669% Annual Taz Increment $ 603 $ 2,383 x Number of Potential New Pro am Homes 46 46 Total Gross Annual Taz Increment** $ 27,738 $109,618 *Assumes non-homestead property net tax capacity to be reclassified as homestead property upon County's certification of net tax capacity. Estimate Of Ad Valorem Lower Limit of Range Upper Limit of Range Pro er Taxes (Per Home) (Per Home) Construction Cost Land and Buildin $ 92,000 $160,000 Estimated Market Value $ 85,560 $148,800 x Tax Capacity Ratio (Class lA; Property Type R-Homestead: 1.00% of the first $72,000 of assessed value $ 720 $ 720 2.00% of the balance $ 271 $ 1,536 New Taz Ca aci $ 991 $ 2,256 x Tax Capacity (Extension) Rate Taxes Pa able in 1994 140.669% 140.669% Annual Ad Valorem Pro a Tazes $ 1,394 $ 3,173 x Number of Potential New Pro am Homes 46 46 Gross Total Annual Ad Valorem Pro a Taxes $ 64,124 $145,958 Appendix A-4-5 APPENDIX D BUDGET" TAX INCREMENT FINANCING DISTRICT "A-4" Line Item Per Pro Gross Amount* Pro e A uisition $52,000 $ 2,392,000 A sisals $ 350 $ 16,100 Demolition/Site Clearance $ 6,000 $ 276,000 Le al Ex enses $ 1,000 $ 46,000 Total $59,350 $ 2,730,100 *This budget assumes potential acquisition of all 48 Cycle IV properties located within Tax Increment Financing District "A-4". Note that program revenue allocation of $750,000 allows for the acquisition of 13 properties on average. Appendix A-4-6 APPENDIX E ESTIlVIATE OF IlVIPACTS ON OTHER TAXING JURISDICTIONS TAX INCREMENT FINANCING DISTRICT "A-4" The purpose of analyzing impacts on taxing jurisdictions is to (a.) determine how tax increment assistance provided to a proposed redevelopment project impacts taxing, jurisdictions; (b.) determine the level of impact as it relates to tax base; and (c.) determine the amount of taxes a. taxing entity would need to levy in order to increase their respective tax base by the amount the project brings in absent the project. If the "But For" test were not met, construction would not occur. That is, without the creation and existence of the tax increment district, construction would not occur because the cost of developing the proposed project by a private developer would be prohibitive. Acceptable rates of return on project investment could not be met and risk would be too high. Development would not move forward. Construction would not occur without the assistance of the city. In light of this, the impact to taxing jurisdictions would be $0. Foregone would be the benefits of a new construction project, increased overall tax base, and other project objectives. The estimated impact of Tax Increment District "A-4" would be as follows if the project were built without tax increment financing: IlVIPACT ON TAX BASE Range of Captured Entity's Total Range of Captured Net Taa Capacity Tagin Enti Net Tag Ca aci Net Taa Ca aci to Enti Total Cit of Richfield 21,056,158 19,734 - 77,924 0.094 - 0.370 Herne in Coun 966,907,816 19,734 - 77,924 0.002 - 0.008 School District 280 21,056,158 19,734 - 77,924 0.094 - 0.370 The following table displays captured tax capacity when all construction is completed. The tax rates and tax capacities are the payable 1995 figures for all jurisdictions. The potential taxes column is the estimate of the amount of taxes each jurisdiction would theoretically have to raise if the goal of taxing entities was to raise tax base equal to that of the project without constructing the project. Appendix A-4-7 IlVIPACT ON TAX RATES Tazing Entity- Current Range of Captured Potential Taa Rate Taz Ca aci Tazes Ci of Richfield 26.626 19,734 - 77,924 $ S,2S4 - 20,748 Henne in Coun 37.454 19,734 - 77,924 $ 7,391 - 29,186 School District 280 67.327 19,734 - 77,924 $13,286 - 52,464 Other ~ 6.357 19,734 - 77,924 $ 1,254 - 4,954 Total 140.669 In addition, the impact on the school district does not include the effect of state aid for education upon school district funding. Appendix A-4-8 The Housing and Redevelopment Authority in and for The City of Richfield, Minnesota Modification No. 4 to the Redevelopment Plan for Redevelopment Project Area "B" Modification No. 1 to the Taz Increment Financing Plan for Taz Increment Redevelopment District "B-3" Taz Increment Financing Plan for Taz Increment Redevelopment District "B-4" All Related to the Richfield Rediscovered Housing Program Dated: May 15,1995 Prepared By: The City of Richfield Department of Community Development Housing and Redevelopment Division 6700 Portland Avenue South Richfield, NiN 55423 (612) 861-9760 Modification No. 4 to the Redevelopment Plan for Redevelopment Project Area "B" TABLE OF CONTENTS Part L Richfield Rediscovered Housing Program Modification No. 4 Redevelopment Plan for Redevelopment Project Area "B" PART I -REDEVELOPMENT PLAN Original Plan Pa a Modification No. 4 Pa e A. Statement of Public Pu ose 33 - - - B. Statuto Authori 33 - - - C. Descri tion of Redevelo went Project Area 34 - - - D. Statement of Goals and Ob'ectives 35 - - - E. Develo ment Activities and A reements 36 - - - F. Pro osed Land Use 38 - - - G. Ac uisition and Relocation Activities 38 B-1 H. Environmental Considerations 39 - - - L Redevelo went Plan Modification 39 - - - J. Administration of Redevelo meat Project 39 - - - B-i Part L Modification No. 4 Redevelopment Plan for Redevelopment Project Area "B" G. Acquisition and Relocation Activities 1. Acquisition In furthereance of the Richfield Rediscovered Housing Program, HRA staff maintained standards set forth in prevous years to identify property for acquisition. In its sequential. numbering system, this is Cycle IV in the housing program. As in the past, residential property owners were contacted and surveyed to determine (a.~ whether or not they continued to express an interest in selling their property on a voluntary basis and (b.) if interested, within which time frame. Additional means of obtaining candidate properties were made by (a.) property owners contacting the HRA requesting that their property be considered for the program and (b.) referrals by the city's health and inspections department. Candidate properties-were further evaluated for program eligibility and inspected. The following properties are identified for acquisition under Cycle IV of the program: . PROPERTY ADDRESS PID NUMBER 6318 -Knox Ave. ~" 28-028-24-21-0107 6421 -Girard Ave. 28-028-24-13-0008 6929 -Queen Ave. 29-028-24-44-0171 2819 - W. 70112 St. ~" 32-028-24-12-0068 6305 -Girard Ave So. 28-028-24-12-0027 6813 -Russell Ave So. 29-028-24-44-0038 6736 - U ton Ave So. 29-028-24-42-0132 6300 -Aldrich Ave.* 28-028-24-11-0041 7432 -Aldrich Ave. 33-028-24-41-0026 6320 -Girard Ave So. 28-028-24-12-0033 6440 -Humboldt Ave So." 28-028-24-24-0009 6306 -Irvin Ave So. 28-028-24-21-0126 6310 -Irvin Ave So. 28-028-24-21-0075 6645 -Knox Ave So. 28-028-24-31-0032 6601 - Lo an Ave So. 28-028-24-31-0061 6539 -Oliver Ave So.* 28-028-24-23-0092 6824 -Queen Ave So.* 29-028-24-44-0024 6825 -Queen Ave So. 29-028-24-44-0008 6913 -Queen Ave So. 29-028-24-44-0175 B-1 PROPERTY ADDRESS PID NUMBER 6933 -Queen Ave So.• 29-028-24-44-0170 2916 - W. 71 1 /2 St. 32-028-24-12-0072 1908 - W. 66th St. 28-028-24-23-0125 6845 -Newton Ave. 28-028-24-33-0018 6320 -Oliver Ave. 28-028-24-22-0122 7332 - U ton Ave. + 32-028-24-13-0059 *Property moved from Cycle III acquisition list to the Cycle IV acquisition list. +Double lot. "Early acquisition. Under Cycle IV, the property listed in the following table (formerly part of the Cycle III property list) is hereby removed from the acquisition list for Redevelopment Project Area B. This property may be considered for future program acquisition. (Also note that this property is identified for removal from the list of properties for Tax Increment District "B-3 "). PROPERTY ADDRESS PID NUMBER 7015 -Penn Ave. 33-028-24-22-0003 7021 -Penn Ave. 33-028-24-22-0004 B-2 Modification No. 1 to the Taz Increment Financing Plan for Taz Increment Redevelopment District "B-3" TABLE OF CONTENTS Part II. Richfield Rediscovered Housing Program Modification No. l Tag Increment Financing Plan for Tag Increment Redevelopment District "B-3" PART I -TAX INCREMENT PLAN. Original Plan Pae Modification No. 1 Pae A. Statuto Authori ~ - - - B. Statement of Ob'ectives ~ - - - C. Develo merit Pro ram ~ - - - D. Description of Property. in the Tag Increment Financin District 9 B-3-1 E. Classification of the Tag Increment Financin District 9 - - - F. Parcels in Ac uisition 10 B-3-1 G. Estimate of Costs 10 - - - H. Estimated Amount of Obli ated Funds 10 - - - L Sources of Revenue 11 - - - J. Ori final Tag Ca aci 11 - - - K. Estimated Ca tared Tag Ca aci 12 - - - L. Duration of the District 12 - - - M. Estimated Im act on Other Tagin Jurisdictions 12 - - - N. Modifications of the Tag Increment Financin District 12 ~ - - - O. Limitation on Administrative Eg enses 12 - - - P. Limitation on Duration of Tag Increment Financing Districts 13 - - - Q. Limitation on Qualification of Property in Increment District not Sub'ect to Im rovement 13 - - - R. Limitation of the Use of Tag Increment 13 - - - S. Notification of Prior Planned Im rovements 14 - - - T. Excess Tag Increment 14 - - - U. Restrictions on Poolin ;Five Year Limit 15 - - - V. Assessment A reements ~ 16 - - - W. Administration of the Tag Increment Financing District and Maintenance of the Tag Increment Account 17 - - - X. Annual Disclosure Re uirements 1 ~ - - - Y. Assam tions 18 - - - Z. Munici al Findin s 18 - - - B-3-i Modification PART II -TAX INCREMENT PLAN Original Plan No. 1 Pae .Pae A endiz A: Ma - Redevelo ment Pro'ect Area "B" 23 - - - Appendiz B: Property in the Taz Increment Redevelopment District "B-3" 25 A endiz B-3-1 A endia C: Estimate of Taz Increments 26 - - - A endiz D: Taz Increment Financin Bud et 27 ' - - Appendiz E: Estimate of Impacts on Other Tazing Jurisdictions 28 - - " B-3-ii Part L Modification No. 1 Taa Increment Financing Plan for Taa Increment Redevelopment District "B-3" D. Description of Property in the Taa Increment Financing District The property listed within Appendix B is the final list of property which was acquired for program purposes. See "Section F. Parcels in Acquisition" below for properties. removed from the acquisition list due to unresponsiveness or undesire to further participate in the program. F. Parcels in Acquisition The properties listed below (formerly part of the Cycle III property list) have been identified for removal from the acquisition list and from TIF District "B-3". The removal of this property is a program objective under Cycle lV of the Richfield Rediscovered Housing Program. This property maybe considered for program acquisition at some future date and incorporated . back into the Richfield Rediscovered Program under a separate program modification. B-3-1 APPENDIX B FINAL LIST OF PROPERTY LOCATED IN TAX INCREMENT FINANCING DISTRICT "B-3" PROPERTY ADDRESS PID NUMBER ORIGINAL NET TAX CAPACTTY* 6404 =Humboldt Ave. 28-028-24-24-0002 $ 660 6821 - Lo an Ave. 28-028-24-34-0050 $ 580 6236 -Pleasant Ave. 27-028-24-22-0056 $ 600 6645 - U ton Ave. 29-028-24-42-0015 $ 1,219 *Original net tax capacity shown represents values of record for taxes payable in 1994, as stated in the 1994 plans. Appendix B-3-1 Taz Increment Financing Plan for Taz Increment Redevelopment District "B-4" TABLE OF CONTENTS Part IL Richfield Rediscovered Housing Program Taz Increment Financing Plan for Taz Increment Redevelopment District "B-4" PART I -TAX INCREMENT PLAN Page No. A. Statuto Authori B~-1 B. Statement of Ob'ectives B-4-1 C. Develo ment Pro ram B-4-1 D. Descri tion of Pro a in the Taz Increment Financin District B-4-2 E. Classification of the Taz Increment Financin District B-4-2 F. Parcels in Ac uisition B-4-3 G. Estimate of Costs B-4-4 H. Estimated Amount of Obli ated Funds B-4-4 I. Sources of Revenue B-4-4 J. Ori final Taz Ca aci B-4-4 K. Estimated Ca tured Taz Ca aci B-4-4 L. Duration of the District B-4-5 M. Estimated Im act on Other Tazin Jurisdictions B-4-5 N. Modifications of the Taz Increment Financin District B-4-5 O. Limitation on Administrative Ez enses B-4-5 P. Limitation on Duration of Taa Increment Financin Districts B-4-5 Q. Limitation on Qualification of Property in Increment District not Sub'ect to Im rovement B-4-6 R. Limitation of the Use of Taz Increment B-4-6 S. Notification of Prior Planned Im rovements B-4-6 T. Ezcess Taz Increment ~ B~-~ U. Restrictions on Poolin ;Five Year Limit B-4-7 V. Assessment A reements B-4-9 W. Administration of the Taz Increment Financing District and Maintenance of the Taz Increment Account B-4-9 X. Annual Disclosure Re uirements B~-9 Y. Assum tions B-4-10 Z. Munici al Findin s B-4-10 B-4-i PART I -TAX .INCREMENT PLAN Page No. A endix A: Ma - Redevelo ment Pro'ect Areas "A" and "B" A endix B-4-1 Appendix B: Property in the Taz Increment Redevelopment District "B-4" A endix B-4-3 A endix C: Estimate of Tax Increments A endix B-4-4 A endix D:~ Taa Increment Financin Bud et A endix B-4-5 Appendix E: Estimate of Impacts on Other Taxing Jurisdictions A endix B-4-6 B-4-ii Part IL Taa Increment Financing Plan for Taz Increment Redevelopment District "B-4" A. Statutory Authority The statutory authority for the undertaking of a tax increment financing district (TIF District "B-4") and related Tax Increment Financing Plan (Tax Increment Plan) in Redevelopment Project Area "B" (Project Area "B") for the Richfield Rediscovered Housing Program (Housing Program) and the activities proposed in the tax increment plan relating thereto is conferred upon the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HItA), pursuant to and in accordance with the Tax Increment Financing Act, Minn. Stat., Sec. 469.174 to 469.179, inclusive, as amended. B. Statement of Objectives The HRA and the City continue to seek and affum the goals and objectives set forth in Part I of the Redevelopment Plan for Redevelopment Project Area "B", dated July 16, 1990 as well as additional program objectives set forth in HRA Letter No. 13, dated Apri120, 1992. C. Development Program 1. Descriation of Development Activities As with previous cycles of the housing program and so with Cycle IV, a comprehensive, integrated approach for acquisition, site clearance, and new construction will continue to be provided through program guidelines. The HRA will assist prospective developers, builders, and buyers with development, redevelopment, new construction, and other related activities within the context of the modified Redevelopment Plan for Redevelopment Project Area "B", this Tax Increment Plan, and other related guidelines. 2. Development Activities Covered by Contract At this writing, there are no early negotiations for property acquisitions proceeding between H1tA staff and owners for one property. Early acquisitions have already occurred on two properties. Any and all development contracts which may arise in the interim processing period of these plans, both modified and new, will be contingent upon HRA Board and City Council approval. B-4-1 3. Other Develoament Not Under Contract Reasonably Eaaected to Occur in the Project. Proposals from prospective developers, builders, and buyers will be required to be submitted to the HRA as part of the review process. The following activities may be expected to occur: 1. Property Acquisition; 2. On-site clearance; 3. On-site improvements; 4. New construction; 5. Remedial site environmental activities; and 6. Adjacent public improvements and utilities which service site. For Cycle IV of the Housing Program, a total of 73 properties have been identified for program participation and acquisition. Forty six (46) of the properties are located within Redevelopment Project Area "A".while the remaining 25 are within Redevelopment Project Area "B". (Refer to Appendix A for map of Redevelopment Project Areas and tax increment parcels.) Redevelopment Project Areas A and B each contain one property with a double lot. Property subdivisions will be required for these lots in order to construct two homes on each site. Initial construction for Cycle IV is anticipated to begin in the summer of. Construction for each home is anticipated to be approximately 120 days. Timing of construction is contingent upon favorable market conditions, reasonable time period for processing applications and availability of funding revenue. D. Description of Property in the Taz Increment Financing District Property located within TIF District "B-4" is identified in Appendix B. E. Classification of the Taz Increment Financing District The Richfield HRA and City Council, in determining the need for a tax increment financing district in accordance with Minn. Stat., Seca 469.174 to 469.179, inclusive, as amended, find that Tax Increment District "B-4" to be established within Project Area "B" is a redevelopment tax increment financing district as defined in Mmn. Stat:, Sec. 469.174, subd. 10. Since the tax increment parcels within the scattered site program are non-contiguous, each parcel has been examined by staff against the statutory definitions of structurally substandard and other blight definitions: Each structure has qualified under Minn. Stat., Sec. 469.174, subd. 10. Thus, the tax increment financing district meets the requirements of a redevelopment tax increment financing district. B-4-2 A detailed account of property examination for eligibility are enumerated within a document entitled "Richfield Rediscovered Housing Program: Blight Qualification Survey -Cycle IV" which will be on file at City Hall, Community Development Department, Housing and Redevelopment Division, for the duration of the tax increment district's life. F. Parcels in Acquisition The following property has been identified for acquisition in TIF District B-4, Cycle IV of the Housing Program: PROPERTY ADDRESS PID NUMBER 6318 -Knox Ave. ~+ 28-028-24-21-01.07 6421 -Girard Ave. 28-028-24-13-0008 6929 -Queen Ave. 29-028-24-44-0171 2819 - W. 701 /2 St. ~-+ 32-028-24-12-0068 6305 -Girard Ave So. 28-028-24-12-0027 6813 -Russell Ave So. 29-028-24-44-0038 6736 - U ton Ave So. 29-028-24-42-0132 6300 -Aldrich Ave.* 28-028-24-11-0041 7432 -Aldrich Ave. 33-028-24-41-0026 6320 -Girard Ave So. 28-028-24-12-0033 6440 -Humboldt Ave So.* 28-028-24-24-0009 6306 -Irvin Ave So. 28-028-24-21-0126 6310 -Irvin Ave So. 28-028-24-21-0075 6645 -Knox Ave So. 28-028-24-31-0032 6601 - Lo an Ave So. 28-028-24-31-0061 6539 -Oliver Ave So.* 28-028-24-23-0092 6824 -Queen Ave So.* 29-028-24-44-0024 6825 -Queen Ave So. 29-028-24-44-0008 6913 -.Queen Ave So. 29-028-24-44-0175 6933 -Queen Ave So.* 29-028-24-44-0170 2916 - W. 71 1 /2 St. * 32-028-24-12-0072 1908 - W. 66th St. * 28-028-24-23-0125 6845 -Newton Ave. 28-028-24-33-0018 6320 -Oliver Ave. 28-028-24-22-0122 7332 - U ton Ave. + 32-028-24-13-0059 *Property moved from Cycle III acquisition list to the Cycle IV acquisition list. +Double lot. 'Early acquisition. The tax increment district budget includes acquisition costs for land sale subsidy which will be offered to eligible developers, builders, and buyers as development incentives. B-4-3 G. Estimate of Costs The estimate of public costs associated with the tax increment district are outlined in the budget listed in Appendix D. H. Estimated Amount of Obligated Funds At the current time, $750,000 of program revenue is anticipated to be alloted to Cycle IV in order to continue with the housing prQg~ xlness for redevelopment is expected to be An estimate of the amount of bnnde~d .iadPht~ $0. The term of the issues is 0 years including 0 years of capitalized interest with an anticipated taxable interest rate of 0%. The amount of capitalized interest is estimated to be $0. L Sources of Revenue The primary source of revenue to be used to finance public costs associated with proposed developments in the redevelopment project area is an allocation from the development account. In addition to this allocation, other sources of revenue potentially available to the HRA and City maybe utilized. J. Original Taz Capacity Pursuant to Minn. Stat., Sec. 469.175, subd. 1 and Sec. 469.177, subd. 1, the Original Net Tax Capacity (OTC) for TIF District "B-4" is based on the January 2, 1994 assessed value placed on the property by the county assessor. The OTC for the district is $17,126. (See Appendix B, Property Located in Tax Increment Financing District "B-4".) Each year the office of the county auditor will measure the amount of increase or decrease in the total net tax capacity of the tax increment district to calculate the tax increment payable to the redevelopment district fund. In any year in which there is an increase in total net tax capacity in the tax increment district above the original net tax capacity, a tax increment will be payable. In any year in which the total net tax capacity in the tax increment district declines below the original net tax capacity, no tax capacity will be captured and no tax increment will be payable. The county auditor shall certify in each year after the date the original net tax capacity was certified, the amount the OTC has increase or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; or 3. Change due to stipulations, adjustments, negotiated or court-ordered abatements. K. Estimated Captured Taz Capacity Pursuant to Minn. Stat., Sec. 469.175, Subd. 1 and NI'inn. Stat., Sec. 469.177, subd. 2, the estimated captured net tax capacity (CTC) of Tax Increment District "B-4" is within a range of B-4-4 $395 to $1,660 per home. The total CTC for the full build-out of 25 potential new homes to be located within Redevelopment Project Area "B" ranges from $9,875 to $41,500. As a result of the improvements to be constructed, it is expected that the estimated captured net tax capacity will be available for the housing program. It is also anticipated that this amount will be captured not more than 25 years. (See Appendix C, Estimate of Tax Increments.) L. Duration of the District Pursuant to Minn. Stat., Sect. 469.176, subd. 1, the maximum duration of a redevelopment tax increment district is 25 years. The HRA elects. to capture 100% of the tax increments for the duration of the district. M. Estimated Impact on Other Taxing Jurisdictions Refer to Appendix E, Estimate of Impacts on Other Taxing Jurisdictions. N. Modifications of the Taz Increment .Financing District All tax increment plan modifications will be processed in accordance with Minn. Stat., Sec. 469.175, subd. 4. The modifications pertaining to the necessary processing include any reduction or enlargement of the geographic area of the project or tax increment financing district; increase in amount of bonded indebtedness to be incurred, including a determination of capitalized interest on debt if that determination was not a part of the original plan, or to increase or decrease the amount of interest on the debt to be capitalized; increase in the portion of the captured tax capacity to be retained by the I3RA; increase in total estimated tax increment expenditures or designation of additional property to be acquired. by the HRA shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original plan. The geographic area of a tax increment district maybe reduced, but shall not be enlarged after five years following the date of certification of the original tax capacity by the County Auditor. O. Limitation on Administrative Expenses , In accordance with 11Tinn. Stat., Sec. 469.174, subd. 14, and Minn. Stat., Sec. 469.176, subd. 3, for districts for which certification was requested after June 30, 1982, no tax increment shall be used to pay any administrative expenses for a project which exceed ten percent of the total tax increment expenditures authorized by the tax increment financing plan or the total tax increment expenditures for the project, whichever is less. P. Limitation on Duration of Taa Increment Financing Districts Pursuant to IVfinn. Stat., Sec. 469.176, subd. 1, the HRA must issue bonds, or acquire property, or construct or cause public improvements to be constructed within three years of the date of certification of the tax increment district my the county auditor. B-4-5 Q. Limitation on Qualification of Property in Taz Increment District Not Subject to Improvement Pursuant to Mum. Stat., Sec. 469.176, subdivision 6, "if, after fow years from the date of certification of the original net tax capacity of the tax increment financing district..., no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the HRA or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel, and the original net tax capacity of the tax increment financing district. ff the HRA or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the I-iRA shall certify to the county auditor that the activity has commenced, and the county auditor shall certify the net tax capacity thereof most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax increment financing district." R Limitation of the Use of Taz Increment All revenues derived from tax increment shall be used in accordance with the tax increment financing plan. The revenues shall be used to finance or otherwise pay public redevelopment costs pursuant to Minn. Stat., 469.001 to 469.047, inclusive, as amended. These revenues shall not be used to circumvent existing levy limit law. No revenues derived from tax increment shall be used for the construction or renovation of a municipally owned building used primarily and regularly for conducting the business of the municipality. This provision shall not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure, a commons area used as a public park or a facility used for social, recreational or conference purposes and not primarily for conducting the business of the municipality. Pursuant to Minn. Stat., Sec. 469.176, subd. 4j, at least 90 percent of the revenues derived from tax increments from a redevelopment district must be used to finance the cost of correcting conditions that allow designation of a redevelopment district under section 469.174. These costs include acquiring properties containing structurally substandard buildings or improvements, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition of structures, clearing of the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the authority may be included in the qualifying costs. S. Notification of Prior Planned Improvements Pursuant to Minn. Stat., Sec. 469.177, subd. 4, the F1RA will review and search property files for properties to be included in the tax increment district and to identify those properties for B-4-6 which building permits have been issued during the 18 months immediately proceeding approval of the tax increment financing plan by the City. T. Excess Tax Increments Pursuant to Minn. Stat., Sec. 469.176, subd. 2, in any year in which the tax increment exceeds the amount necessary to pay the costs authorized by the tax increment plan, including the amount necessary to cancel any tax levy as provided in Minn. Stat., Sec. 475.61, subd. 3, the HItA shall use the excess amount to: 1. Prepay the outstanding bonds; 2. Discharge the pledge of tax increment therefor; 3. Pay into an escrow account dedicated to the payment of such bond; 4. Repay any loans including interest on these loans; or 5. Return the excess to the county auditor for redistribution to the respective taxing jurisdictions in proportion to their tax capacity rates. The amounts distributed to a~city or county must be deducted from the levy limits of the governmental unit for the following year. In .calculating the levy limit base for later years, the amount deducted must be treated as a local government aid payment. For the purpose of this tax increment financing plan, excess tax increment means that increment received in any year which is in addition to the amount needed to satisfy the HRA's current financial obligations or commitments, as specified in the tax increment financing budget listed in Appendix D, or which is in addition to that which is placed in a separate account for the purpose of accumulating funds needed to satisfy those financial obligations or commitments in the future. U. Restrictions on Pooling; Five-Year Limit In accordance with 1Vlinn. Stat., Sec. 469.1763, the following terms have the meanings. given: "Activities" means acquisition of property, clearing of land, site preparation, soils correction, removal of hazardous waste or pollution, installation of utilities, construction of public or private improvements, and other similar activities, but only to the extent that tax increment revenues may be spent for such purposes under other law. Activities do not include allocated administrative. expenses, but do include engineering, architectural, and similar costs of the improvements in the district. "Third Party" means an entity other than (1) the person receiving the benefit of assistance financed with tax increments, or (2) the municipality or the development authority or other person substantially under the control of the municipality. B-4-7 Pursuant to Minn. Stat., Sec. 469.1763, subd. 2 with respect to expenditures outside the district: (a) For each tax increment financing district, an amount equal to at least 75 percent of the revenue derived from tax increments paid by properties in the district must be expended on activities in the district or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities in the district or to pay, or secure payment of, debt service on credit enhanced bonds. Not more than 25 percent of the revenue derived from tax increments paid by properties in the district maybe expended, through a development fund or otherwise, on activities outside of the district but within the defined geographic area of the project except to pay, or secure payment of, debt service on credit enhanced bonds. The revenue derived from tax increments for the district that are expended on costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before calculating the percentages that must be expended within and without the district. Pursuant to Minn. Stat., Sec. 469.173, subd. 3 with respect to the five-year rule: (a) Revenues derived from tax increments are considered to have been expended on an activity within the district under subdivision 2 only if one of the following occurs: (1) before or within five years after certification of the district, the revenues are actually paid to a third party with respect to the activity; (2) bonds, the proceeds of which must be used to finance the activity, are issued and sold to a third party before or within five years after certification and the revenues are spent to repay the bonds; (3) binding contracts with a third party are entered into for performance of the activity before or within five years after certification of the district and the revenues are spent under the contractual obligation; or (4) costs with respect to the activity are paid before or within five years after certification of the district and the revenues are spent to reimburse a party for payment of the costs. (b) For purposes of this subdivision, bonds include subsequent refunding bonds if one of two tests is met: (1) the proceeds of the original refunded bonds were spent on activities within five years after the district was certified or (2) the original refunded bonds are issued within five years after the district was certified and the proceeds are expended on activities within a reasonable temporary period within the meaning of the use of that term under section 148(c)(1) of the Internal Revenue Code. Pursuant to Minn. Stat., Sec. 469.173, subd. 4 with respect to use of revenues for decertification: B-4-8 Beginning with the sixth year following certification of the district, 75 percent of the revenues derived from tax increments paid by properties in the district that remain after the expenditures permitted under subdivision 3 must be used only to pay outstanding bonds, as defined in subdivision 3, paragraph (a), clause (2), and paragraph (b) or contracts, as defined in subdivision 3, paragraph (a), clauses (3) and (4). When the outstanding bonds have been defeased and when sufficient money has been set aside to pay contractual obligations as defined in subdivision 3, paragraph (a), clauses (3} and (4), the district must be decertified and the pledge of tax increment discharged. V. Assessment Agreements Pursuant to Minn. Stat., Sec. 469.177, subd. 8, the H1tA may enter into an agreement in recordable form with a developer or redeveloper of property within the tax increment district which establishes a minimum market value of the tax increment district. The assessment agreement shall be presented to the county assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and so long as the minimum market value contained in the assessment agreement appears in the judgment of the assessor, to be a reasonable estimate, the assessor may certify the minimum market value agreement. W. Administration of the Taz Increment District -and Maintenance of the Taz Increment Account Administration of the tax increment district will be the responsibility of the Richfield Housing and Redevelopment Authority. The tax increment received as a result of increases in the net tax capacity of the tax increment district will be maintained in a special account separate from all other HRA and municipal accounts and expended only upon sanctioned activities identified in the tax increment financing plan. X. Annual Disclosure Requirements Pursuant to Minn. Stat., Sec. 469.175, subd. 6a, on or before March 1 of each year, the HRA must annually report to the commissioner of revenue the following: 1. Total principal amount of nondefeased tax increment financing bonds that are outstanding at the end of the previous calendar year; and 2. Total annual amount of principal and interest payments that are due for the current calendar year on (i) general obligation tax increment financing bonds, and (ii) other tax increment financing bonds. Also in accordance with this requirement the H1tA must annually report to the commissioner of revenue the following amounts for the tax increment financing district: B-4-9 1. Type of district; 2. Date on which the district is required to be decertified; 3. Captured net tax capacity of the district, by property class as specified by the commissioner of revenue, for taxes payable in the current calendar year; 4. Tax increment revenues for taxes payable in the current calendar year; 5. Whether the tax increment financing plan or other governing document permits increment revenues to be expended (i) to pay bonds, the proceeds of which were. or maybe expended on activities located outside of the district, (ii) for deposit into a common fund from which money maybe expended on activities located outside of the district, or (iii) to otherwise finance activities located outside of the tax increment financing district; and 6. Any additional information that the commissioner of revenue may require. Y. Assumptions It was necessary to make certain assumptions regarding income, costs and timing of the tax increment financing district. These assumptions are based on discussions with the HRA, City, and County staff, and consultants: Z. Municipal Findings Pursuant to lvfinn. Stat., Sec. 469.175, subd. 3, before or at the time of approval of the tax increment financing plan, the municipality shall make the following findings and shall set forth in writing the reasons and supporting facts for each determination: 1. The Tax Increment Financing District is a redevelopment district pursuant to 1Vlinn. Stat., Sec. 469.174, subd. 10. It has been determined that parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities or other improvements and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance. Specifically, staff has examined each parcel against the statutory definitions of structurally substandard and other blight definitions due to the non-contiguous nature of the tax increment parcels. Each structure has qualified under Minn. Stat., Sec. 469.174, subd. 10. Thus, the tax increment financing district meets the requirements of a redevelopment tax increment financing district. A detailed account of property examination for eligibility are enumerated within a document entitled Richfield Rediscovered Housing Program: Blight Qualification Survey -Cycle N" which will be on file at City Hall, Community Development Department, Housing and Redevelopment Division ,for the duration of the tax increment district's life. B-4-10 2. The proposed activities listed in this plan, in the opinion of the HRA, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. Therefore, the use of tax increment financing is deemed necessary since the proposed development requires certain necessary planning, property assembly and other improvements without which interested developers, builders, or buyers could not construct the aforementioned improvements; and without the use of tax increments or other revenues authorized by this plan to assist with the financing of the activities, interested developers, builders, or buyers- would not proceed with redevelopment in the redevelopment project area. 3. The tax increment financing plan conforms to the general plan for the development of the City as a whole as it will result in the continuation of the Richfield Rediscovered Housing Program for the development, redevelopment, new construction and other .related improvements of residential homes for which there is limited sarurces of revenue available. 4. The tax increment financing plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development by private enterprise as it will enable the HRA to provide the necessary redevelopment for the project area and City, as a whole, in a planning manner suitable to both the public and private sectors. B-4-11 APPENDICES RICHFIELD REDISCOVERED HOUSING PROGRAM REDEVELOPMENT PROJECT AREA "B" AND TAX INCREMENT FINANCING DISTRICT "B-4" APPENDIX A REDEVELOPMENT PROJECT AREAS "A" AND "B" Appendix A-4-1 N N ~p PI £Z HSIONtl1S P~ ZZ Is IZ VI OZ VI61 MO11319NO1 '3Atl aV030 41 81 _-- 41L1 I V191 ~ NOlONIWOOIB .-' 41 SI r 41 b1 41 EI 41 21 4111 ~1 41 01 I 1 ~- 101113 ~~ 09VOIH0 II snewnioo ~ Xatld ONtllXVO '3AV ONtlllaOd IS VIS ~ I~ 41b NO1NIl0 DIE y DpZ S N3A31S I>:1 '3Atl 13llO~IN ~ 113051tl1B I ~ I I H1aOM1N3M ~1 AanBSllld II III 1NVStl3ld ~;L f aNtlao lil 131aatlH 11 I Ol31datl0 I~j I '3Atl 3ltlONAI ~~- lulaoltl III 1_ LNtllae Iii` L xtldlo~ I 1 1NOdn0 II ~\ NOSa3W3 ft \\' LNOW3aj I ~= aatlal9 I J- LaloewnH ~ 9Nlnal P! ~- s3wtlr XONX NtlOOI I _~~~J J Nv9aow N NOLM3N ;i a3nno li I 3Atl NN3d N33n0 (I~ ll3SSna IJ~- ii -- Ntl01a3HS I ~ ____ stlwoHl ; I Nolan ~i 1N3JNIA '1I NaneastlM PI I 3Atl S3Xa3% iiG,-.-~ > ~ ~i N N I Z N D O ~ ~ ,yl- ~ ~ ~ ~ N N N ~ N ~i _ _~JL~C -7 I J~~f~J ~IL^^J''I 1 I ~1~'~ ~J 1I ~~LJ ~~ ~1 n~~~~~--------- 0,=-- y N N t o L M ', a .n n r r r 2 _Z ~ ~ 8 F LL w Z o wo' $ ~ ~ U ~Uz a r W r ~ ~ ~ Z N N N Z t ~ W N ma = r ~ re JQ_____-_ -- MOll3dONOl , '3AV aV030 '- VI BI \ :: =J -- '•1 I V I L I li V191 ~^ '-,li NOIONIWOO,e u II ~O ~ Vl SI I ! ~~-/I 1 41 b l ~OL/~1 VI £I ~O a V/ ZI I I' ~O ill V111 I I ~~ III 10/ll3 ~0 ~!~ 09VOIN0. ! ~~ snewmoa ' ~' %avd ~C~ h,l uNtll%vo __ r- _ ~i6 ,3AV ONVIlaOd III 41b NO1 Nils - I DIE - ( Opt C~ /1/(~ SN3A31S 1 0 /1. Isl '3Atl 13llOOIN C1U~ „3U61tl,9 ~J~I NlaOM1N3M I Aanesllld L._._l_.- ! 1NVSV3ld II ONVa9 r~. l~ L_ If I I i3laavH C~I / II Ol31iatl9 L/ 1' '3AV 3lVONAI ~® I Halaaly _ ~~ I 1NtlAa8 C~7~ ~, Xtlj,00 - ~~~~~ 1NOdno - ~ - / NOSa3w3 - i 1NOw3ad I i' aaval9 --~~~ taloewnH r n~\\~ oNlnal '~ s3wvr ~~ XON% l I ~ NtlOOI ~~1~~.-t.. NVONOW ~C; ~I NOl M3N ~L-J /~, a3nno NII '3AV NN3d II N33n0 ll3ssna ~' NVOIa3HS -_-"~ SVWOHL Nolan ~- ~~ I LN30NIA ~~ ;~y I NaneasvM ~~_-•~~,.~ '3AV S3%a3% N N N pal a L_ = t - ~p r r r rm 77Q ~i Qi W Qi H U W I'7 P4 a W W 0 U H Q a 1A-1 W H W x U H Ir•1 u, A N N N N V1 N N N N I/1 N 1~II N e ~n ~o r m m o o - iv m a n ~p tp ~p ~p ~p N r r r f- r r r r APPENDIX B PROPERTY LOCATED IN TAX INCREMENT FINANCING DISTRICT "B-4" PROPERTY ADDRESS PID NUMBER ORIGINAL NET TAX CAPACITY** 6318 -Knox Ave. ~ 28-028-24-21-0107 $ 580 6421 -Girard Ave. 28-028-24-13-0008 $ 540 6929 -Queen Ave. 29-028-24-44-0171 $ 600 2819 - W. 701/2 St. ~-+- 32-028-24-12-0068 $1,449 6305 -Girard Ave So. 28-028-24-12-0027 $ 590 6813 -Russell Ave So. 29-028-24-44-0038 $ 590 6736 - U ton Ave So. 29-028-24-42-0132 $ 620 6300 -Aldrich Ave." 28-028-24-11-0041 $ 560 7432 -Aldrich Ave. 33-028-24-41-0026 $ 579 6320 -Girard Ave So. 28-028 24-12-0033 $ 560 6440 -Humboldt Ave So.* 28-028-24-24-0009 $1,196 6306 -Irvin Ave So. 28-028-24-21-0126 $ 590 6310 -Irvin Ave So. 28-028-24-21-0075 $ 560 6645 -Knox Ave So. 28-028-24-31-0032 $ 690 6601 - Lo an Ave So. 28-028-24-31-0061 $1, 020 6539 -Oliver Ave So." 28-028-24-23-0092 $ 432 6824 -Queen Ave So.* 29-028-24-44-0024 $ 380 6825 -Queen Ave So. 29-028-24-44-0008 $ 760 6913 -Queen Ave So. 29-028-24-44-0175 $ 580 6933 -Queen Ave So.* 29-028-24-44-0170 $1,030 2916 - W. 71 1 /2 St. 32-028-24-12-0072 $ 600 1908 - W. 66th St. 28-028-24-23-0125 $ 490 6845 -Newton Ave. 28-028-24-33-0018 $ 680 6320 -Oliver Ave. 28-028-24-22-0122 $ 590 7332 - U ton Ave. + 32-028-24-13-0059 $ 860 * Property moved from Cycle III acquisition list to the Cycle IV acquisition list. **Original tax capacity for taxes assessed in 1994 and payable in 1995 +Double lot. Appendix A-4-3 APPENDIX C ESTIlVIATE OF TAX INCREMENTS AND PROPERTY TAXES FOR TAX INCREMENT FINANCING DISTRICT "B-4" Tax Increment Estimates Lower Limit of Range Upper Limit of Range and Calculations (Per Home) (Per Home) Construction Cost and and Buildin $ 92,000 $160,000 x Sales Ratio 93% 93% Estimated Market Value $ 85,560 $148,800 x Tax Capacity Ratio (Class lA; Property Type R-Homestead: 1.00% of the first $72,000 of assessed value $ 720 $ 720 2.00% of the balance $ 271 $ 1,536 New Taz Ca aci ' $ 991 $ 2,256 - Ori Net Tax Ca aci Av . * $ 596 $ 596 Ca tured Net Taa Ca aci $ 395 $ 1,660 x Tax Capacity (Extension) Rate Taxes Pa -able in 1995 140.669% 140.669% Annual Taa Increment $ 556 $ 2,335 x Number of Potential New Pro am Homes 25 25 Total Gross Annual Taa Increment"* $13,891 $ gg,37S Appendix A-4-4 *Assumes non-homestead property net tax capacity to be reclassified as homestead property upon County's certification of net tax capacity. APPENDIX D BUDGET* TAX INCREMENT FINANCING DISTRICT "B-4" Line Item Per Pro Gross Amount* Pro e A uisition $52,000 $ 1,300,000 A raisals $ 350 $ 8,750 Demolition/Site Clearance $ 6,000 $ 150,000 Le al E eases $ 1,000 $ 25,000 Total $59,350 $ 1,483,750 *This budget assumes potential acquisition, of all 25 Cycle IV properties located within Tax Increment Financing District "B-4". Note that program revenue allocation of $750,000 allows for the acquisition of 13 properties on average. Appendix A-4-5 APPENDIX E ESTIl~'IATE OF IlViPACTS ON OTHER TAXING JURISDICTIONS TAX INCREMENT FINANCING DISTRICT "B-4" The purpose of analyzing impacts on taxing jurisdictions is to (a.) determine how tax increment assistance provided to. a proposed redevelopment project impacts taxing jurisdictions; (b.) determine the level of impact as it relates to tax base; and (c.) determine the amount. of taxes a taxing entity would need to levy in order to increase their respective tax base by the amount the project brings in absent the project. If the "But For" test were not met, construction would not occur. That is, without the creation and existence of the tax increment district, construction would not occur because the cost of developing the proposed project by a private developer would be prohibitive. Acceptable rates of return on project investment could not be met and risk would be too high. Development would not move forward. Construction would not occur without the assistance of the city. In light of this, the impact to taxing jurisdictions would be $0. Foregone would be the benefits of a new construction project, increased overall tax base, and other project objectives. The estimated impact of Tax Increment District "B-4" would be as follows if the project were built without tax increment financing: IlVIPACT ON TAX BASE Range of Captured Entity's Total Range of Captured Net Taa Capacity Tazin Enti Net Taz Ca aci Net Taa Ca aci to Enti Total Ci of Richfield 21,056,158 13,891 - 58,378 0.066 - 0.277 Henne in Coun 966,907,816 13,891 - 58,378 0.001 - 0.006 School District 280 21,056,158 13,891 - 58,378 0.066 - 0.277 The following table. displays captured tax capacity when all construction is completed. The tax rates and tax capacities are the payable 1995 figures for all jurisdictions. The potential taxes column is the estimate ofthe-amount of taxes each jurisdiction would theoretically have to raise if the goal of taxing entities was to raise tax base equal to that of the project without constructing the project. Appendix A-4-6 IlVIPACT ON TAX RATES Taxing Entity Current Tax Rate Range of Captured Tax Ca aci Potential Taxes Ci of Richfield 26.626 13,891 - 58,378 $ 3,699 - 15,544 Henne in Coun 37.454 13,891 - 58,378 $ 5,203 - 21,865 School District 280 67.327 13,891 - 58,378 $ 9,352 - 39,304 Other ~ 6.357 13,891 - 58,378 $ 883 - 3,711 Total 140.669 In addition, the impact on the school district does not include the effect of state aid for education upon school district funding. Appendix A-4-7 CITY OF RICHFIELD, MINNESOTA Council Letter No ia2 Agenda July 10, 1995 Issue Statement: Public hearing and second reading of updates to Section 310 of the City Code, the personnel section. Background: The personnel section of the City Code establishes a uniform and equitable system of personnel administration for City employees. Minor corrections and revisions were last made in 1991. Several areas of the ordinance are in need of updating because they have become obsolete and housekeeping changes are proposed. The major areas of change include: Section 310.03, Subd. 28 permits apart-time position to be created with project (special) funding. (By adding this provision, the City can make full use of outside funding sources. Without adding this provision, the City stands to forfeit outside funding because the funding isn't sufficient to pay for afull-time employee.) • Section 310.07, Subd. 5 permits the City to conduct criminal history and driver's license background checks on candidates for employment. (This provision complies with recent State law changes.) Section 310.33, Subd. 2(e) grants one more day of vacation, up to 21 days per year, beginning the twentieth year of employment. (This is a benefit granted to the male- dominated Police Supervisors bargaining unit in 1995. By granting it to General Services and Management employees, the benefit is applied uniformly and equitably to both male and female employees.) Section 310.37, Subd. 1 increases the personal leave accrual rate by 0.15 hours biweekly to 2.0 hours biweekly.. (The male-dominated- Local 49 Labor and Trades and Police Supervisors bargaining units were granted this benefit in 1995. By granting it to General Services and Management employees, the benefit is applied uniformly and equitably to both male and female employees.) Section 310.37, Subd. 1 increases the maximum personal leave accrual by 20 hours to 180 hours (The City Council granted this increased accrual maximum to the male- dominated Police Supervisors bargaining unit in 1994. By granting it to General Services and Management employees, the benefit is applied uniformly and equitably to both male and female employees.) • Section 310.41, Subd. 2(c) increases the time the manager may suspend an ~ employee without pay. from thirty calendar days per year to forty-five calendar days per occurrence. Thirty calendar days per calendar year is not sufficient to allow for progressive discipline for instances of gross misconduct. y/ • Housekeeping corrections such as making the ordinance gender neutral and changing the term "permanent" employee to "regular" employee and changing "Personnel Manager" to "Human Resources Manager." Supplemental information is attached.: First reading of the Section 310 updates was held June 12; 1995. The public hearing and second reading were scheduled for July 10, 1995. Recommended Motion: Recommend that the City Council take the following action: 1. Approve second reading of the ordinance amendment updating Section 310 of the City- Code. 2. Adopt the resolution to authorize and approve the summary publication of Bill 1995- 10. Basis of Recommendation: 1. Changes are needed to maintain a uniform and equitable system of personnel administration. 2. Male-dominated bargaining groups were granted benefit increases comparable to the proposed changes. 3. Housekeeping changes make this section gender neutral and clarify provisions. 4. The first reading of the Section 310 updates was held June 12, 1995. The public hearing and second reading were scheduled for July 10, 1995. Alternative Recommendation: 1. The Council may decide. not to approve the updates thereby preserving the existing inequities: 2. The Council may decide to make changes other than the ones suggested. Discussion/Decision Mode: At the approval of the first reading scheduled on the June 12, 1995 agenda, the public. hearing and second reading were scheduled for July 10, 1995. Respectful) submitted, Jame .Prosser City M ager JDP:cak ~~ BILL NO. 1995-10 AN ORDINANCE:AMENDING SECTION 310 OF THE RICHFIELD CITY CODE; RELATING TO PERSONNEL 'MATTERS; ADDING PROVISIONS REGARDING BACKGROUND INVESTIGATIONS; AMENDING VACATION AND PERSONAL LEAVE PROVISIONS; AND. MAKING TECHNICAL AMENDMENTS THE CITY OF RICHFIELD DOES ORDAIN: Section 1. Section 310 of the ordinance Code of the City of Richfield is hereby amended by amending the heading thereof to read as follows: Section 310 -Administrative; pe~se~el human resources Sec. 2. Subsection 310.01 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 1 thereof to read as follows: 310.01. General provisions. Subdivision 1. Purpose. It is the purpose of this section to establish a uniform and equitable system of persermel human resources administration for city employees. Sec: 3. Subsection 310.01 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 2 thereof to read as follows: Subd. 2. Scope of rules. (a) Exempt positions. Unless otherwise specifically provided, the following offices and positions are exempt from the application of this section: elected officials; members of boards and commissions; the city manager; intermittent and seasonal employees, the city attorney and the health officer.- Sec. 4. Subsection 310.01 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 4 thereof to read as follows: Subd. 4. Administration. The manager is authorized and directed to administer the rules and regulations of this section. -The manager may issue administrative directives and instructions, not inconsistent with this section, as necessary to explain and clarify the provisions thereof and to facilitate their use. The manager may appoint a perse~el human resources manager and delegate to the per$e~el human resources manager the administration of this section and any other perse~el human resources functions which the manager is authorized to perform. Sec. 5. Subsection 310.03 of the ordinance Code of the City of Richfield i hereby amended by amending subdivision 2 thereof to read as follows: Subd. 2. "Benefits" means privileges granted to officers, employees, and their dependents, as part of a total compensation package, including but not limited to vacation leave, sic-lE erp sonal leave, holiday leave, military leave, or any and all insurance pay. Sec. 6. Subsection 310.03 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 7 thereof to read as follows: 1 ~~ 3 Subd. 7. "Continuous service" means the total amount of uninterrupted full-time pet~at~nt regular employment with the city, including any unpaid leaves of absence of less than 30 days duration. Continuous service begins the first day of full-time probationary employment if the employee will be eligible for afull-time ~t re ular appointment upon satisfactory completion of the probationary period. Sec. 7. Subsection 310.03 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 16 thereof to read as follows: Subd. ~ ~. "Intermittent employee" means a person employed for less than 20 hours er less per week whose employment has no specific termination date. Sec. 8. Subsection 31U.03 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 17 thereof to read as follows: Subd. ~ 18. "Managerial employee" means an employee as defined in subsection 310.21, subdivision 2. Sec. 9. Subsection 310.03 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 18 thereof to read as follows: Subd. ~-8 19. "Original appointment" means the initial entry into probationary status in the city service. Sec. 10. Subsection 310.03 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 19 thereof to read as follows: Subd. X120. "Outside employment" means employment of any kind engaged in by a city employee for which compensation is received from a source other than the city. Sec. 11. Subsection 310.03 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 20 thereof to read as follows: Subd. 28 21. "Part-time employee" means an employee who is scheduled to work on a regular and recurring schedule of at least fo and less than eighty hours in a bi-weekly payroll period. Sec. 12. Subsection 310.03 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 21 thereof to read as follows: Subd. 2~ 22. "Part-time pertt regular employee" means an employee scheduled to work between at least forty and seventy-nee less than eighty hours per bi-weekly pay period, on a regularly scheduled basis throughout the year. Part-time p~anext re ular employees have no specified end of employment date and are eligible for selected prorated city benefits, including vacation leave, sislE rpe sonal leave and holiday leave. Sec. 13. Subsection 310.03 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 22 thereof to read as follows: Subd. ~ 23. "Pay plan" or "compensation plan" means a schedule of pay grades in bi- weekly rates for all position classes within the city service. Sec. 14. Subsection 310.03 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 23 thereof to read as follows: y~ Subd. 23 31. "fit Re ular employee" means afull-time employee or a part-time employee who works a minimum of forty hours -per bi-weekly. payroll period on a regular basis throughout the year and who has completed a designated probationary period. The term " regular" shall not be used to define duration of employment with the city; nor is it meant to convey to the employee any rights or implication of tenured employment. Sec. 15. Subsection 310.03 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 24 thereof to read as follows: Subd. 24 16. "Persetmel Human resources manager" means a person appointed by the manager and charged with the administration of this section. The human resources mana eg r shall perform the functions of the personnel manager. Sec. 16. Subsection 310.03 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 25 thereof to read as follows: Subd. ~-5 24. "Position" means a group of duties and responsibilities. assigned or delegated by competent authority and requiring the employment of one person. Sec. 17. Subsection 310.03 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 26 thereof to read as follows: Subd. 2b ~. "Probationary employee" means an employee who has not completed a designated probationary period for the currently occupied position l~e~-su~ently~sst~ies> whether it is an original appointment or one obtained by promotion or transfer. During the probationary period an employee may be separated from that position without appeal. Sec. 18. Subsection 310.03 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 27 thereof to read as follows: Subd. ~ 26. "Probationary period" means a trial period, obtained by original appointment, by promotion, or by transfer, which is considered as an integral part of the selection process, during which an employee is required to demonstrate leis fitness for the position prior to receiving a ~ regular appointment. Sec. 19. Subsection 310.03 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 28 thereof to read as follows: Subd. 28 27. "Project (special funded) employee" means a €ulltinie full-time or part-time employee whose duties .are directly related to the. operation of a specific program or project and whose compensation is specifically allocated from designated non-general revenue funds, such as, but not limited to, grants or special assessments. With respect to group insurance, holidays, vacation leave and personal leave/short-term disability benefits only, such employees shall be treated as P~ regular employees working a similar number of hours. Sec. 20. Subsection 310.03 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 29 thereof to read as follows: Subd. ~ 28. "Promotion" means movement of an employee from a position in one class to a position in another class having a higher maximum salary rate. Sec. 21. Subsection 310.03 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 30 thereof to read as follows: ~! 5 Subd. 39 29. "Provisional appointment" means an appointment made for a limited period of time in a class for which examinations are ordinarily given and for which appropriate employment lists are not currently available. Sec. 22. Subsection 310.03 of the ordinance Code. of the City of Richfield is hereby amended by amending subdivision 31 thereof to read as follows: Subd. ~ 30. "Reallocation" means a reassignment or change in allocation of a position by raising it to a higher class, reducing it to a lower class, or moving it to another class at the same level, on the basis of significant changes in the nature, difficulty, or responsibility of the work performed in such position: Sec. 23. Subsection 310.03 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 33 thereof to read as follows: Subd. 33. "Restoration" means the return of a promoted probationary employee to la-is the employee's former position either during, or at the completion of 1}is t_he employee's promotional probationary period. Sec. 24. Subsection 310.03 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 36 thereof to read as follows: Subd. 36. "Shift employee" means an employee who occupies a ~ regular full- time position which requires work on a regular schedule at any period during the 24 hours of a day and on any day during the week. Sec. 25. Subsection 310.07 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 3 thereof to read as follows: Subd. 3. Vacancies. Application to compete for a position vacancy must be filed in the manner prescribed by the city manager. Vacancies for ~t re ular positions will be posted for at least five working days. Sec. 26. Subsection 310.07 of the ordinance Code of the City of Richfield is hereby amended by adding subdivision 5 thereof to read as follows: Subd. 5. Background Investigations. Upon the request of the manager or designee, the Public Safety Deparhnent must obtain and provide background information about certain employment, volunteer or independent contractor candidates, such as: (a) status and history of drivers' licenses for candidates who may be responsible for operating city vehicles or receiving city reimbursement for operating their own vehicles, (b) background check .and criminal history check through fmgerprints to determine whether a candidate who may have substantial contact with juveniles is the subject of any reported conviction of Child Protection Background Check Act crimes, (c) criminal history background data check for candidates who would be required to perform the task of entering private property on a regular basis, (d) thorough background screening, investigation, state and national arrest and fugitive record checks, and state and national III record checks by fingerprints from candidates who would have access to operate, program, effectuate access to a National Crime Information Center (NCIC) terminal or initiate transmission of NCIC information. 7-(p See. 27. Subsection 310.09 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 4 thereof to read as follows: Subd. 4. Demotion. -The manager may demote an employee who becomes physically or mentally incapacitated or for anyother reason cannot perform the duties and. responsibilities of the currentl,~pied position , or who wishes to be demoted for other personal reasons. The demotion may be to a position in a lower class if the employee is qualified to perform. the duties of such position. Sea 28. Subsection 310.09 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 5 thereof to read as follows: Subd. 5. Promotion. Whenever reasonably possible, the manager may fill vacancies in the municipal service by promotion of ~ regular employees. Notice of vacancies shall be posted for at least five days at locations where employees may become aware er of promotional opportunities. Where candidates for promotion are equally qualified, the manager shall give consideration to the candidates' length of service. Sec. 29. Subsection 310.15 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 1 thereof to read as follows: 310.15. Probationary periods.. Subdivision 1. General rule. All original, promotional and transfer appointments in the municipal service shall be subject to the serving of a probationary period. The probationary period shall be regarded as an integral part of the examination process and shall be utilized for observing the employee's work, for assisting in the adjustment of the employee to leis the position and for rejecting -any employee whose performance does not meet the required performance standards. . Sec. 30. Subsection 310.15 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 4 thereof to read as follows: Subd. 4. Status during promotional and transfer probationary period. During a promotional or transfer probationary period, a promoted or transferred probationary employee shall retain status as a ~ regular employee and may be restored to the employee's former or a similar position if performance is unsatisfactory in the new position or the employee requests to be restored to a former or a similar position and such vacancy exists. This may be done either during or at the completion of the promotional or transfer probationary period. After a ~t re ular appointment is received in a new position, the promoted or transferred employee loses all rights to the former position. If an employee is restored to a former or a similar position because of unsatisfactory performance, the employee shall be provided with the reasons for the action and shall have the right to appeal in accordance with section 310.47. Sec. 3.1. Subsection 310.15 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 5 thereof to read as follows: Subd. 5. Conditions of ~t reg_ular appointment. An originally appointed, promoted or transferred employee will receive a peed re ular appointment to a new position upon the successful completion of the- probationary period, the favorable written recommendation of the department head, and the approval of the manager. See. 32. Subsection 310.17 of the ordinance Code. of the City of Richfield is hereby amended by amending subdivision 4 thereof to read as follows: y~ Subd. 4. Deductions. The city shall make deductions from employees' pay as required by law.. In addition,. any employee may designate additional ~X deductions ~-^aT for any purposes authorized by the city. Sec. 33. Subsection 310.19 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 4 thereof to read as follows: Subd. 4. Requirements for pay increases. For an employee to become eligible for an increase in pay, the deparhnent head shall file a written statement with the manager at least twenty days prior to the- increase date stating an opinion as to the manner in which the employee has performed .assigned duties since the original appointment or last increase in pay and a recommendation as to whether the employee should be granted or denied an increase in pay. If the employee.'s work has been properly .and diligently performed, has been satisfactory in light of the length of service in the position and has shown the improvement normally to be expected with increasing periods of service and other factors considered relevant to employment, the department head shall recommend that the employee be granted the next regular increase in pay. If, in the judgment of the department. head, the employee's work has been below the standards that-are expected, lie the department head shall recommend that no increase be granted. The manager shall authorize or deny pay increases for municipal employees as recommended by department. heads, unless in the manager's .opinion and based on supporting information, the .recommendation is unsound.. In those cases where a department head .recommends that an employee be denied an .increase in pay, the department head shall notify the employee in writing of the recommended action, including the reasons therefor, at the same time the manager is notified. Sec. 34. Subsection 310.19 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 13 thereof to read as follows: Subd.. 13. Reporting pay. A perfxat~ei}t re ular employee who reports for work at a regularly scheduled time on a regular work day and is sent home by a supervisor because the work cannot be performed shall receive a minimum of two hours pay. Sec. 35. Subsection 310.19 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 14 thereof to read as follows: Subd. 14. Recall pay. A ~t regular employee who is recalled to work after the completion of a regular work day by a supervisor shall receive a minimum of two hours pay for each call. Sec. 36. Subsection 310.19 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 16 thereof to read as follows: Subd. 16. Longevity pay: (a) ~ Regular full-time employees hired before October 1, 1991 who have performed satisfactory continuous service for the required number of years shall be eligible to begin accruing longevity pay at the beginning of the payroll period in which the required number of years has been .completed.. Eligible employees shall receive a longevity payment of l% based on current biweekly base salary upon completion of five years of full-time service and 2% based on current biweekly base salary upon completion of ten years of full-time service. Longevity increments shall be paid in addition to regular compensation and may be incorporated with regular pay checks. (Revised, Bill No. 1991-10) Sec. 37. Subsection 310.21. of the ordinance Code of the City of Richfeld is hereby amended by amending subdivision 2 thereof to read as follows: Subd. 2. Exempt employees. Employees classified as exempt under the provisions of the Fair Labor Standards Act shall not receive overtime compensation either in the form of pay or time 6 off, as provided for herein for nonexempt employees. The city manager may, however, grant reasonable periods of time off to exempt employees when he the ci manager determines that such time off is warranted. Sec. 38. Subsection 310.23 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 1 thereof to read as follows: 310.23. Group insurance provisions. Subdivision 1. Eligibility. Group insurance for the purposes authorized in Minnesota Statutes, section 471.61 and under conditions therein set forth may be provided to pe~a~er~ reQUlar full-time and ~t regular probationary full-time employees of the city by resolution of the city council. Sec. 39. Subsection 310.23 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 2 thereof to read as follows: Subd. 2. Coverage. Effective dates for commencement and discontinuance of group insurance coverage for eligible employees shall be in accordance with the respective group insurance plan specifications. The city shall notify an employee upon termination of his eligibility to continue group insurance coverage in accordance with Minnesota Statutes, section 62A.17. Sec. 40. Subsection 310.25 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 1 thereof to read as follows: 310.25. Employee training. Subdivision 1. Responsibility for training. Each department and division head shall provide on the job orientation and training and be responsible for the continuing development of each employee in the department or division. The pefsexrtel human resources manager shall assist department and division heads in carrying out these responsibilities and in meeting any special training needs. Sec. 41. Subsection 310.25 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 2 thereof to read as follows: Subd. 2. Time for training. Training to improve the quality of an employee's work in the employee's present position may be considered city business and may be conducted before or after working hours. Training to prepare the employee for promotion shall be on the employee's own time unless, because of shortage of n~ewe~ staffmg or other circumstances, it is in the city's interest to use work time. Sec. 42. Subsection 310.29 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 4 thereof to read as follows: Subd. 4. Lunch periods. City employees whose work day exceeds five consecutive hours shall be granted 30 minutes without pay for a lunch period. Scheduling lunch periods shall be at the discretion of the em foyer. Sec. 43. Subsection 310.29 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 5 thereof to read as follows: Subd. 5. Administration. The specific arrangement and adjustment of the hours of the work week shall be the function of the department head and manager. Unless otherwise desi nested b_v the manager rest and lunch~eriods shall not be scheduled to chance the normally scheduled hours of work. Sec. 44. Subsection 310.31 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 2 thereof to read as follows: 7' Subd. 2. Eligibility for paid holidays. 1?er-maner~t Regular employees and full-time probationary employees, except public safety personnel who are shift employees, are eligible for the paid holidays listed above. Employees must be on pay status the work day immediately preceding and the work day immediately following a holiday to be eligible for such holiday. Employees who are required to be on duty and are unable to observe a holiday will be permitted to take their allowed number of holiday hours of leave with pay within twelve months of the holiday worked. Sec. 45. Subsection 310.31 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 6 thereof to read as follows: Subd. 6. Holidays for shift employees. Employees engaged in shift work who are unable to observe a holiday will be permitted to take equivalent time off within twelve months of the designated holiday. ~ R.-~ and probationary p~ertt regular employees who are classified as 911 Dispatchers and who work on the following named holidays at the expressed authorization of the City Manager will be compensated at time and one half (1 t/2) of the employee's regular base rate of pay for all hours worked in addition to the holiday leave granted: New Year's Day Labor Day Memorial Day Thanksgiving 4th of July Christmas (Amended, Bill No. 1990-14) Sec. 46. Subsection 310.31 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 7 thereof to read as follows: Subd. 7. ~ Re ul r part-time employees. Holiday leave shall be accrued by ~ ~eular part-time employees at the rate prescribed for petananet~ reeular employees but prorated to the hours worked per week by the ~ reeular part-time employees. Sec. 47. Subsection 310.33 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 1 thereof to read as follows: 310.33. Vacation leave. Subdivision 1. Eligibility. Fanent Regular employees and full-time probationary employees shall be eligible for vacation leave upon accrual except that no employee be allowed vacation leave until after completion of six months of employment. Sec. 48. Subsection 310.33 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 2 thereof to read as follows: Subd. 2. Full-time employees. Full-time pertt reeular and full-time probationary employees shall accrue vacation leave according to the following schedule: (a) from the beginning of continuous employment through the fifth year of continuous employment, each employee shall earn vacation at the rate of 3.70 hours per bi-weekly pay period (12 days per year); (b) from the beginning of the sixth year and through the tenth year of continuous employment, each employee shall earn vacation at the rate of 4.62 hours per bi-weekly pay period (15 days per year); (c) from the beginning of the eleventh year and through the fifteenth year of continuous employment, each employee shall earn vacation at the rate of 5.54 hours per bi-weekly pay period (18 days per year); ~/-io (d) from the beginning of the sixteenth year , and through the nineteenth year of continuous employment, each employee shall earn vacation at the rate of 6.16 hours per bi-weekly pay period (20 days per year). ~) from the beginning of the twentieth year of continuous employment throuehout the duration of em~lo~ment each em~lovee shall earn vacation at the rate of 6.47 hours per biweekly pay period 21 days per vearl Sec. 49. Subsection 310.33 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 3 thereof to read as follows: Subd. 3. pew Re ular part-time employees. Vacation leave shall be accrued by text regular part-time employees for each twelve months of continuous and active city service at the rate prescribed for ~ regular employees in proportion to the hours worked per week as measured against the hours worked per week by a ~t re ular full-time employee. A p~ regular part-time employee shall be eligible to accrue a proportional share of vacation leave as scheduled in this subsection, provided, however, that increases in vacation leave accrual rates shall be based on total hours worked and not on years of employment. For purposes of deter- mining increases in vacation accrual rates, 2,080 hours shall equal one year of employment. Sec. 50. Subsection 310.33 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 5 thereof to read as follows: Subd. 5. Use of vacation. Vacation leave may be used as earned, provided that such leave shall be filed in the manner prescribed by the del human resources office and that the department head shall approve the time and duration of the leave to be taken. Sec. 51. Subsection 310.35 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 1 thereof to read as follows: 310.35. Sick leave. Subdivision 1. Eligibility and accrual. ~ Regular employees and full- time probationary employees, except as otherwise provided, are eligible to accrue and use sick leave. Sec. 52. Subsection 310.35 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 2 thereof to read as follows: Subd. 2. ~ R~ employees. Sick leave shall be accrued for all panerrt regular full-time employees and pe~aneHt regular full-time probationary employees at the rate of 3.70 hours per biweekly pay period unti1960 hours of sick leave have been accumulated and then at the rate of .93 hours per biweekly pay period of service or major fraction thereof with no maximum accumulation. Sec. 53. Subsection 310.35 of .the ordinance Code of the City of Richfield is hereby amended by amending subdivision 3 thereof to read as follows: Subd. 3. ~~ Regular part-time employees. Sick leave shall be accrued for pere~ reQUlar part-time employees at the rate prescribed for pe~anerrt regular full-time employees, but such accrual shall be in proportion to the hours worked per week by ant regular full-time employees. Sec. 54. Subsection 310.35 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 5 thereof to read as follows: 1/-// Subd. 5. Usage. Sick leave shall not be considered as a vested- right which an employee may use at Iris the emplo~e's discretion, but shall be considered as a type of insurance which may be granted only for the following reasons: (a) physical incapacity incurred on or off duty; (b) personal illness, including medical or dental treatment for the employee or medical or dental treatment for the employee's spouse or children residing within the employee's household; (c) enforced quarantine of the employee in accordance with community health regulations; (d) serious illness or injury in the immediate family; immediate family means spouse, parents, children, siblings, grandparents, grandchildren, mother-in-law and father-in-law.. Not more than twenty-four work hours of sick leave is permitted for any' single occurrence; the term "occurrence" means all events which are related to any one illness or injury of an eligible family member; (e) death in the immediate family; leave for this purpose shall be charged against the employee's accrued sick leave where applicable. Sec. 55. Subsection 310.35 of the ordinance Code of the .City of Richfield is hereby amended by amending subdivision 6 thereof to read as follows: Subd. 6. Application procedure. To be eligible for paid sick leave an employee must: (a) notify the employee's supervisor within one-half hour of the time set for the beginning of the employee's work day; (b) give the employee's supervisor an anticipated return date and notify him the supervisor as soon as possible if that date should change; and (c) submit, if required by the manager, a .medical certificate from a licensed physician stating the nature of the illness or injury and whether the employee has been incapacitated for work for the period of absence. Sec: 56. Subsection 310.37 of the. ordinance Code of the City of Richfield is hereby amended by amending subdivision 1 thereof to read as follows: 310.37. Personal leave. Subdivision 1. Eligibility and accrual. A managerial employee, a a- reQUlar full-time or full-time probationary employee, and a permanent regular c,i ~art_ time or part-time probationary employee, classified and compensated under the compensation plan or general services pay plan, as those plans have been adopted and may be amended from time to time pursuant to subsection 310.17 of this code, is eligible to accrue and use personal leave. An eligible full-time employee shall. accrue ~ 22_0 hours of personal leave biweekly and may accumulate such leave from year to year up to a maximum of -1~8 180 hours of personal leave, unless written authorization extending this maximum is obtained from the department head and the city manager. Hours in excess of ~9 1$ hours shall be forfeited by the employee without compensation. Eligible part-time employees shall accrue personal leave on a proportional basis of the full-time accrual based on hours worked per payroll period and .shall be limited to maximum accruals and extensions authorized for full-time employees. Sec. 57. Subsection 310.37 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 3 thereof to read as follows: 10 Subd. 3. Conversion of sick leave benefit. Each employee who becomes eligible for personal leave and who has accrued sick leave hours shall convert such sick leave hours into personal leave hours in accordance with the formula developed and amended from time to time by the city manager and set out in the city's perse}x~el human resources policy. In the event that an employee ceases to be classified under the management or general services pay plan, but remains an employee of the city, that employee's personal leave.-shall be converted back to the then applicable-sick. leave benefit in reverse application of the above-mentioned formula then in effect. /~ Sec. 58. Subsection 310.37 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 4 thereof to read as follows: Subd. 4. Usage and administration. An employee may use accrued personal leave for-any reason, subject to the restrictions stated herein, but shall be required to use accrued personal leave for illness or injury necessitating absence from work, except that personal leave shall not be-used if the employee is eligible for short-term disability or long-term disability benefits. Personal leave shall be scheduled and administered under direction of the department heads. In the -event of illness or injury necessitating work absence, the employee requesting such leave shall notify ;,~-~-~~ the employee's supervisor prior to the scheduled reporting time. Requests for personal leave for reasons other than illness or injury must be submitted to the. supervisor a reasonable time in advance of the period of time for which such leave is requested to enable the .supervisor to arrange for normal continuance of the department functions, and in such cases, requested .personal leave will not. be unreasonably refused, but shall be subject to and coordinated with the administrative and. managerial needs of the city. Personal leave shall be chargeable only when used on regularly scheduled work days or work periods. When aholiday- occurs during an employee's personal leave, and the employee is regularly entitled to time off on the holiday with pay, such time will not be charged against the employee's personal leave. Sec. 59. Subsection 310.39 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 2 thereof to read as follows: Subd. 2.. Leaves for military service. ~e City officers and employees are entitled to _ the benefits provided in Minnesota Statutes, sections 192.26 and 192.261. Sec. 60. Subsection 310.39 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 4 thereof to read as follows: Subd. 4. Leave of absence without pay. Leaves of absence without pay for periods of up to 90 days may be granted at the discretion of the manager. The manager may extend such leaves to a maximum period of one year in cases of disability or where extraordinary circumstances in leis the manager's judgment warrant such an extension. Vacation or sick leave benefits do not accrue during a period of leave of absence without pay. Sec. 61. Subsection 310.41 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 2 thereof to read as follows: Subd. 2. Forms of discipline. Discipline may be in one or more of the forms specified in this subdivision: (a) oral reprimand. When an employee's performance warrants discipline, the appropriate supervisor shall inform the employee promptly and specifically of the deficiency. (b) written reprimand. In situations where an oral warning has not resulted in sufficient improvement of the employee deficiency or where more severe initial action is warranted, a written reprimand shall be issued to the employee and a copy placed in the employee's personnel file. 11 7-/ ~, (c) suspension without pay. In those cases where one or more written reprimands have not proven to be effective, or in those cases where the seriousness of the events or conditions warrant it, an employee may. be suspended without pay by the .city manager, for a period not to exceed Na-i~y forty-five calendar days liei• occurrence. (d) demotion and dismissal. When other forms of disciplinary action have been proved to be ineffective, or where the seriousness of the offense or condition warrants it, the city manager may demote or dismiss an employee for just cause. Sec. 62. Subsection 310.43 of the ordinance Code of the City of Richfield is hereby amended by amending. subdivision 1 thereof to read as follows: 310.43. Terminations. Subdivision 1. Resignation. An employee wishing to leave the municipal service in good standing shall file with leis t e em~lovee's supervisor or department head, at least 14 days, before leaving, a written resignation stating the effective date of the resignation and the reason ; for leaving. Failure to comply withthis procedure may be considered cause for denying such employee future employment by the. city and denying Germinal vacation benefits. Unauthorized absence from work fora period of three working days may be considered by a department head as a resignation without benefits. Sec. 63. `Subsection 310.47 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 1 thereof to read as follows: 310.47. Appeals and hearings. Subdivision 1. Procedure. An employee who has a grievance may f to low the grievance procedure described in this subsection. All grievances must be filed within twenty-one calendar days after the occurrence of the grievance is deemed to exist. The .employee must. submit a grievance in the following sequence: (i) to the division head or other supervisor above the division head. if anv; (ii) to the department head; and (iii) to the manager. Sec. 64. Subsection 310.47 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 2 thereofto read as follows: Subd. 2. Form of appeal. An appeal to a division head or other supervisor above the division head. if anv. may be either oral or in writing. It shall be in writing if either party so demands. A grievance presented in writing shall be answered in writing. Sec. 65. Subsection 310.47. of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 4 thereof to read as follows: Subd. 4. Decision time limits for appeals. The decision in an appeal shall be made as follows (except that failure to receive a decision shall entitle the employee to appeal at the next step): (a) First step., The division head or other supervisor above the division head, if anv. shall render a written decision giving the reasons for the decision within. seven calendar days after receipt of the grievance. (b) Second step. If the grievance is not settled in step 1 and the employee .desires to appeal, the grievance shall be presented in writing to the department head within seven calendar days after the division head's answer in the first step. The department head shall render a written decision giving the reasons for the decision within ten calendar days after receipt of the grievance. (c) Third step. If the grievance is not settled in step 2 and the employee desires to appeal, the grievance shall be presented in writing to the city manager within seven calendar days after the .department head's answer in the second step. The. city manager shall render a written decision giving reasons for the decision within fifteen calendar days after receipt of the grievance. 12 ~/~ (d) Waiver. If a grievance is not presented within the -time limits set forth above, it shall be considered "waived." If a grievance is not appealed to the next step within the specified time limit, it shall be considered settled on the basis of the employer's last answer. If the employer does not answer a grievance or an appeal thereof within the specified time limits, the employee may elect to treat the grievance as denied at the step and immediately appeal the grievance to the next step. The time.limits in each step maybe extended by mutual written agreement. Sec. 66. Subsection 310.47 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 5 thereof to read as follows: Subd. 5. Labor contracts. An employee who is a member of an appropriate bargaining unit as provided by Minnesota Statutes, chapter 179A, may not follow the grievance procedure set forth herein: Instead, the employee may process the grievance according to the grievance procedure established in the employee's respective labor contract. Seca 67. Subsection 310.49 of the ordinance Code of the City of Richfield is hereby amended by amending subdivision 2 thereof to read as follows: Subd. 2. Type of incompatible activities. The following activities shall. be considered inconsistent, incompatible or in conflict with city employment._ any ?nX employment activity or enterprise which;; (a) involves the use for private gain or advantage of the city's time, facilities, equipment or supplies, prestige or influence of a city office or employment; (b) involves the receipt or acceptance by the officer or employee of any money or other consideration from anyone other than the city from the performance of an act which .the officer or employee would be required or expected to render in the regular course of lug city employment or as apart of his the employee's duties as a city officer or employee; (c) involves the performance of an act in other than leis one's capacity as a city officer or employee which may later be subject, directly or indirectly, to the control, inspection,. review, audit or endorsement by such officer or employee or the employine department > (d) involves so much of the employee's time that it impair~is impairs the attendance or efficiency in the performance of his the employee's duties as a city officer or employee.-; or (el involves .conduct that undermines the ,Tublio's confidence in the City and adversely affects emplovees' morale: The manager shall make a final determination, when necessary, as to whether a specific activity is incompatible. Passed by the City Council of the City of Richfield this 10th day of July, 1995. Martin J. Kirsch Mayor ATTEST: Thomas P. Ferber City- Clerk 13 /~ RESOLUTION NO. RESOLUTION APPROVING SUMMARY PUBLICATION OF BILL NO. 1995-10 WHEREAS, the City. Council has adopted Bill No. 1995-10, an ordinance amending certain provisions of the Richfield City Code relating to personnel matters; and WHEREAS, Section 3.12 of the City Charter permits ordinances to be published by title and summary where the Council unanimously determines that publication of the complete text of the ordinance is not worth the expense and that a summary would clearly inform the public of the intent and effect of the ordinance; and WHEREAS, the text of Bill No.1995-10 is lengthy, due to a large number of changes in terminology that are technical and not substantive in nature; and WHEREAS, expense of publishing-the complete text is not justified, and the following summary will clearly inform the public of the intent and effect of the ordinance. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield that the following summary is hereby approved for official publication. SUMMARY PUBLICATION BILL NO. 1995-10 AN ORDINANCE AMENDING SECTION 310 OF THE RICHFIELD CITY CODE; RELATING TO PERSONNEL MATTERS; ADDING PROVISIONS REGARDING- BACKGROUND INVESTIGATIONS; AMENDING VACATION AND PERSONAL LEAVE PROVISIONS; AND MAKING TECHNICAL AMENDMENTS The City Council of the City of Richfield has adopted Bill No.1995-10, which amends Section 310 of the Richfield City Code. The ordinance makes .certain changes. in terminology and numbering that are technical and not substantive in nature. The ordinance also authorizes the use of background .investigations of employees in certain circumstances, allows employees with 20 or more years of service to earn vacation at 6.47 hours per biweekly pay period, and allows full- time employees. to accrue 2 hours of personal leave biweekly up to a maximum of 180 hours. The full text of Bill No. 1995-10 is available at Richfield City Hall during regular business hours. ~~~`f~ BE IT FURTHER RESOLVED. that the City Clerk keep a copy of the ordinance in his office at City Hall for public inspection and that he post a full ,copy of the ordinance in a public place in the City: Adopted by the City Council of the City of Richfield, Minnesota this 10th day of July, 1995. Martin J. Kirsch, Mayon ATTEST: Thomas P. Ferber, City Clerk L CITY OF RICHFIELD, MINNESOTA Council Letter No. 181 Agenda July 10, 1995 Issue Statement: Authorize a purchase order for publication of the 1995 fall and 1995-1996 winter brochures. Background: The City Council policy resolution on purchasing provides that when the purchase. of merchandise, materials, equipment, or construction exceeds-the amount of $5,000, authority to purchase shall be submitted. to the City Council for consideration. Seasonal recreation brochures are distributed to each resident in the City. Historically, the City has contracted with a company to produce four quarterly brochures on an annual basis. However, with the City switching to a computer system that can provide camera ready copy, the process was changed in 1995 to contract each brochure printing separately.- Quotations were. requested from 11 vendors for, the 1995 fall and 1995-1996 winter season brochures. Vendors could provide quotations for the fall publication only, for the winter publication only, or for a. combination of both seasons. In each case there were two paper options to quote: 1) Bond Paper or 2) Recycled Paper. Listed below. are the quotes received: Fall Brochure Only: Vendor Name Bond Paper Recycled Paper Nystrom Publishing $5,369 $5,369 Artcraft Press $5,489 $5,579 Shakopee Valley $5,780 $6;259. Associated Lithographers. $7,550 No quote given Winter Brochure Only: Vendor Name Bond Paper Recvcl~per Nystrom Publishing $5,569 $5,569 Artcraft Press $5,489. $5,579 Shakopee Valley $5,942 $6,426 Associated Lithographers $7,550 No quote given Fall and Winter Brochure: . Vendor Name Bond Paper Recycled Paper Nystrom Publishing $10,738 $10,738 .Artcraft Press $10,758 $1.0,918 Shakopee Valley $11,722 $12,683 Associated Lithographers $15,100 No quote given ~L-1 Recommended Motion: Accept the quotation for the 1995 fall and 1995-19.96 winter seasonal brochures from Nystrom Publishing Company, Incorporated in the amount of $10,738 which includes printing on recycled paper and authorize a purchase order. Basis of Recommendation: 1. Nystrom Publishing Company, Inc. submitted the lowest responsible quote and has previously printed seasonal brochures. 2. In addition fo the slight cosf advantage of securing printing services at this time for both the fall and winter publications, there is the coordination advantage of working with one vendor for both publications.- 3. There are sufficient funds available for this purchase. Alternate Recommendation: 1. Select another vendor; however, Nystrom Publishing Company, Inc. is a reputable firm. 2. Elect to print the publications on bond paper; however, the low quotation does not- alter prices for bond paper or recycled paper and use of recycled paper has worked well in the past. This is in keeping with-City recycling efforts in several areas including the printing process of previous brochures. 3. Request staff to seek additional quotations; however, this could affect the publishing date for the fall brochure in 1995, and staff feels lower quotes are .unlikely. 4. Do not print any fall 1995 brochure or 1995/1996 winter brochure; however, this would severely limit notification of the public of the programs available during these seasons. Discussion/Decision Mode: The quotations, which were received June 22, 1995, are to remain in effect for a period of 30 days. The only Council meeting to fall within this time period is July 10, 1995. Council should take action at this time. Resp tf ly submitted, Jams .Prosser City anager JDP:cak ~~ CITY OF RICHFIELD, MINNESOTA- - Council Letter No.lso Agenda July 10, 1995 Issue Statement: Award of contract for street light change over.. Background: The mercury vapor street light fixtures presently used in Richfield's residential street light system are inefficient and obsolete. The City Council approved afour-year program to change over approximately 500 fixtures per year from mercury vapor to high pressure sodium fixtures late in 1994. Specifications were- written by staff to include labor and materials for new installation; disposal of old fixtures, parts of which are considered hazardous waste; the standard manufacturer's warranty, required to be a minimum of one year; liquidated damages if the 1995 work is not complete by December 1; and the ability to over run or under run the 1995 contract by 25%. Specifications were sent to 11 prospective bidders. Bids were. opened on June 29, 1995 with the following results: Northern States Power Company $ 83,740 Polyphase, Inc. 99,933 Killmer Electric, Inc.. 102,032 Electric Service Company 107,708 Ridgedale Electric, Inc. 123,800 Collisys (Collins Electrical Systems, Inc.). 13.7,370 .Recommended Motion: Accept the bid minutes/tabulation and award a contract to Northern States Power Company in the sum of $83,740 for the 1995 street light change over project. Basis of Recommendation: 1. Northern States Power Company (NSP) submitted the low bid. 2. NSP is a reputable electrical company. Alternative Recommendation:. Council may choose to reject the bids and instruct staff to obtain new ones; however, staff does not believe a better price can be obtained for this work. Discussion/Decision Mode: Staff is requesting approval at the July 10, 1995 Council meeting in order to facilitate completion of this project before winter weather arrives. Respectfully submitted, James D. Prosser City Manager 3~- ~ CITY OF RICHFIELD, MINNESOTA Bid Opening June 29, 1995 Street Light Changeover Bid No. 95-18 Pursuant to requirements of Resolution No: 1015, a meeting of the Administrative Staff was called by Thomas Ferber, City Clerk, who announced that the purpose of the meeting was to receive, open and read aloud, bids for street light changeover, as advertised in the official newspaper on June 14, 1995. Present: Thomas Ferber, City Clerk Jack Erskine, Public Safety Director Cheryl Krumholz, City Manager Representative Roxi Braa, Administrative Aide Randy Hughes, Operations Coordinator The following bids were submitted and read aloud: Bidder's Name/City Bid Security Base Bid Addenda Polyphase Electric, Inc. St. Paul 5% Bid Bond. $ 99,933.00 yes Killmer Electric Co., Inc. Maple Grove 5% Bid Bond $ 102,032.00 yes NSP Minneapolis 5% Bid Bond $ 83,740.00 yes Ridgedale Electric, Inc. Longlake 5% Bid Bond $ 123,800.00 yes Collisys, Inc. New Hope 5% Bid Bond $ 137,370.00. yes Electric Service Co. of Minneapolis 5% Bid Bond $ 107,708.00 no The City Clerk announced that the bids would be tabulated and considered at the July 10, 1995 City Council Meeting. Thomas P. Ferber City Clerk CITY OF RICHFIELD, MINNESOTA " '~ Council Letter No. 1~9 Agenda July 10, 1995 Issue Statement: Award of purchase order for two submersible pumps. Background: The City Council policy resolution on purchasing provides that when the purchase of merchandise, materials, equipment or construction exceeds the amount of $5,000, authority to purchase shall be submitted to the City Council for consideration. The equipment will be used to recycle backwash water to the head of the softening. plant. The present pumps are too small for present water wash rates. The pumps were bid and scheduled for award per May 8, 1995 City Council action. However, one of the bidders challenged the award. On advice from legal counsel the pumps were rebid. A bid opening for the purchase of two submersible pumps was held on Wednesday, June 21, 1995 with the following results: Vendor Total Bid Quality Flow Systems $19,448 Northern Water Works Supply, Inc. 23,194 Van Bergen & Markson, Inc. 29,230 Recommended Motion: Accept the bid minutes/tabulation and award a purchase order to Quality Flow Systems in the amount of $19,448 for two submersible pumps. Basis of Recommendation: 1. Quality Flow Systems met all requirements and is a reputable vendor. 2. There are sufficient funds available for the purchase of the pumps., Alternative Recommendation: Council may choose not to accept any of the quotations and require new quotes be obtained. However, staff does not believe better prices can be obtained. Discussion/Decision Mode: Staff requests approval at the July 10, 1995 Council meeting. bmitted, Jam~s~. Prosser City anager JDP:cak 3~-1 CITY OF RICHFIELD, MINNESOTA .Bid Opening June 21, 1995 11:00 a.m. Submersible Pumps Bid No. 95-8 Pursuant to requirements of Resolution No. 1015, a meeting of the Administrative Staff was called by Steven L. Devich, Acting City Clerk, who announced that the purpose of the meeting was to receive, open and read aloud, bids for submersible pumps, bid no. 95-8, as advertised in the official newspaper on June 7, 1995. Present: Nancy Stroth, City Clerk Representative. .Donald Fondrick, Community Services Director Cheryl Krumholz, City Manager Representative The following bids were submitted and read aloud: Bidder's Name/City Bid Security Total Bid Amount Van Bergen & Markson, Inc. Certified Check $ 29,230.00 Minneapolis Quality Flow Systems Cashier's Check $ 19,448.00 Eden Prairie Northern Water. Works Supply 5% Bid Bond $ 23,194.00 Brooklyn Park The City Clerk. announced that the bids would be tabulated and considered at the July 10, 1995 City Council .Meeting. Thomas P. Ferber City Clerk ~~ CITY OF RICHFIELD, MINNESOTA Council Letter No. 178 Agenda July 10, 1995 Issue Statement: Award of contract for rehabilitation of deteriorated sanitary sewer lines and appurtenant work. Background: The City has been identifying deteriorated sanitary sewer lines primarily through televising of the lines. Bids were requested for rehabilitation work of 4,900 feet of sanitary sewer lines. The rehabilitation work consists of lining pipes with deformed and reformed polyethylene or polyvinyl chloride liner. The work is to be performed in various areas of the City where pipes are most in need of repair. This is the first year of a five year rehabilitation program which is sometimes called sliplining. Bids from two contractors were opened in accordance with legal requirements on June 29, 1995 with the following results: Visu-Sewer Clean & Seal, Inc. $149,610 Insituform Central, Inc. 181,743 The adopted 1995 wastewater maintenance budget includes a total of $200,000 for all aspects of the 1995 rehabilitation project. Because the lowest bid was favorable, there is an opportunity for additional rehabilitation within the terms of the contract. The contract incorporates Minnesota Department of Highways specifications which permit an increase of the contract amount by up to 25%. Recommended Motion: Accept the bid minutes/tabulation and award a contract for rehabilitation of sanitary sewer lines to Visu-Sewer Clean &-Seal, Inc. in the sum of $149,610 with the understanding the contract may be increased by up to 25%. Basis of Recommendation: 1. Visu-Sewer Clean & Seal, Inc. submitted the lowest responsible bid. There are a limited number of vendors available in Minnesota and Iowa to do this type of work. These vendors, including Visu-Sewer Clean & Seal, Inc., are considered to be responsible. 2. There is sufficient funding in the Wastewater Maintenance Division for the original contract amount and for up to a contract total of approximately $187,000 should all the allowable additional 25% contract increase amount be used. J~ Alternative Recommendation: 1. Council may choose to reject all bids and direct staff to obtain new bids. However, there are a limited number of vendors who do this work and the bids received are reasonable for the amount of work which needs to be completed. Staff does not believe a better price could be obtained from a reputable contractor. 2. Award the contract to Insituform Central, Inc., the second bidder. However, the bid of Insituform Central, Inc., a reputable contractor, exceeds the low bid and there is no apparent reason to award to other than the low bidder. Discussion/Decision Mode: This item is scheduled for the July 10, 1995 City Council meeting. Staff is requesting approval at this time in order to facilitate timely completion of this project. Respectful) submitted, Jame rosser City M ger JDP:cak v1- ~- CITY OF RICHFIELD, MINNESOTA Bid Opening June 29, 1995 .. 10:00 a.m. Sanitary Sewer Rehabilitation Bid No. 95-12 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 sanitary sewer- rehabilitation, Bid No. 95-12, as advertised in the official newspaper on June 14, 1995. Present: Thomas Ferber, City Clerk Steve Devich, Administrative. Services Director Cheryl I<rumholz, City Manager Representative Roxi Braa, Administrative Aide The following bids were submitted and read aloud: VENDOR Bid Security Base Bid Addenda Visu-Sewer Clean & Seal, Inc. 5% Bid Bond $ 149,610.00 #1 received St. Louis Park Insituform Central, Inc. 5% Bid Bond $ 181,743.00 #1 received Chesterfield; MO The City Clerk announced that the bids would be tabulated and considered at the July 10, 1.995 City Council Meeting. Thomas P. Ferber City Clerk 3/~ CITY OF RICHFIELD, MINNESOTA Council Letter No. l~~ Agenda July 10, 1995 ~csue Statement: Council approval to award Morrow Auto Specialty, Inc., atwo-year contract to provide the towing, impounding, and storage of vehicles for the City of Richfield. Backaround: Beginning October 1,-1989, Chief s Towing, Bloomington, Minnesota was awarded a two-year contract to provide the "Towing, Impounding, and Storage of Vehicles" for the City of Richfield. Since that time two, two-year extensions to that contract have been granted. It was decided to initiate a new bidding opportunity for all parties interested in providing this service, beginning October 1, 1995. Three bids were received, opened and read publicly on June 29, 1995. Proposal forms were compared from Chief's Towing, Inc., Morrow Auto Specialty, Inc., and Uptown Towing, Inc. Submitted proposals were weighted, with the lowest bid being that submitted by Morrow Auto Specialty, Inc. Inspections were conducted to ensure that facilities and equipment were suitable and - as specified in their proposals. All three companies meet the minimum requirements of distance, storage facilities and towing equipment. Recommended Motion: Award atwo-year contract (October 1, 1995-September 30, 1997) to Morrow Auto Specialty, Inc. Basis of Recommendation: 1. Morrow Auto Specialty submitted the lowest pricing for towing and storage of motor vehicles. 2. Morrow Auto Specialty has the necessary facilities and equipment to satisfactorily .handle the towing, impounding and storage of motor vehicles for the City. 3. Morrow Auto Specialty's facilities are located within the City of Richfield, whereas the other two companies' locations are outside City limits. Alternative Recommendation: 1. Award the two-year contract to a different vendor. 3~~' Discussion/Decision Mode: To allow for an orderly changeover from the existing provider's operation to that of the new provider, awarding of the contract should occur at least 60 days prior to October 1, 1.995. Respectfully submitted, James D. Prosser City Manager JDP:cak .~N-a PROPOSAL TALLY COMPARISON OF WEIGHTED PROPOSALS FROM SUBMITTED FORMS June 29, 1995 ITEM TABULATION NUMBERS CHIEF'S MORROW'S UPTOWN Towing of impounded cars, trucks under 1 1/2 ton cap. motorcycles, scooters from within Richfield Same outside of Richfield Mileage charge for same 1 1/2 ton + trucks inside Richfield Same outside of Richfield Mileage charge for same Use of winch with a tow (Car) (Truck) Use of a dolly(s) Low-bed trailer or truck Storage Charges: 1st 24 hours Inside: Outside: Each add. 24 hours or fraction Inside: Outside: TABULATION TOTALS: 1,100 600 780 675 375 525 15 15 22.5 480 480 480 400 350 400 10 10 15 0 100 50 0 100 100 0 400 0 1,100 1,000 1,000 p 0 0 0 0 225 0 90 0 250 225 225 4,030 3,745 3,822.5 3/I-3 PROPOSAL TALLY COMPARISON OF UNWEIGHTED PROPOSALS FROM PROPOSAL FORMS June 29,1995 ITEM CHIEF'S MORROW'S UPTOWN Towing of impounded cars, trucks under 1 1/2 ton cap. motorcycles, scooters from within Richfield $55.00 $30.00 $39.00 Same outside of Richfield $45.00 $25.00 $35.00 Mileage charge for same $1.00 $1.00 $1.50 1 1/2 ton + trucks inside Richfield $40.00 $40.00 $40.00 Same outside of Richfield $40.00 $35.00 $40.00 Mileage charge for same $1.00 $1.00 $1.50 Use of winch with a tow (Car) $0.00 $20.00 $10.00 (Truck) $0.00 $20.00 $20.00 Use of a dolly(s) $0.00 $20.00 $0.00 Low-bed trailer or truck $55.00 $50.00 $50.00 Storage Charges: 1st 24 hours Inside: $0.00 $0.00 $0.00 Outside: $0.00 $0.00 $9.00 Each add. 24 hours or fraction 00 $9 00 $0 Inside: $0.00, . . Outside: $10.00 $9.00 $9.00 *Uptown Towing has rented space which provides for all inside storage of vehicles. J1~" L~. CITY OF RICHFIELD, MINNESOTA Bid. Opening June 29, 1995 11:00 a.m. Proposal for Towing, Impounding and .Storage of Vehicles for the City of Richfield Department of Public Safety Two.Year Contract Pursuant to requirements of Resolution No. 1015, a meeting of the Administrative Staff was called by Thomas Ferber, City Clerk, who announced that-the purpose of the meeting was to receive, open and read aloud, bids for proposal for towing, impounding and storage of vehicles for the City of Richfield Department of Public Safety, as advertised in the official newspaper on June 7; 1995. Present: Thomas Ferber, City Clerk Steven Devich, Administrative Services .Director Cheryl Krumholz, City Manager Representative Bill Suech, Public Safety Lieutenant Investigator The following bids were submitted and read aloud: Bidder's Name/City Addendum Bid Security Tabulation Morrow Auto Specialty, Inc. yes Cashier's Check 3,745 Richfield Chief's Towing, Inc. yes Cashier's Check 4,030 Bloomington Uptown Towing yes Money Order 3,822.5 Minneapolis The City Clerk announced that the bids would be tabulated and considered at the July 10, 1995 City Council Meeting. Thomas P. Ferber City Clerk ~~ CITY OF RICHFIELD, MINNESOTA Council Letter No 176 Agenda July 10, 1995 Issue Statement: Approval of an agreement with Orr-Schelen-Mayeron & Associates, Inc. for construction engineering services on the Humboldt Avenue Storm Sewer Project of the 77th Street Project. Background: The Council approved the selection of Bather, Ringrose, Wolsfeld, Inc. (BRW, Inc.) and Orr-Schelen-Mayeron & Associates, Inc. to perform preliminary design and construction engineering for the 77th Street Reconstruction project on April 27, 1992. The Council also approved the contract award for construction of the Humboldt Avenue Storm Sewer of the 77th Street Project on May 8, 1995. Construction is set to begin on July 10, 1995. Engineering supervision and inspection of the storm sewer work is required. The proposed agreement for construction engineering of the storm sewer project is with OSM because the project consists primarily of underground utility work. OSM has provided the engineering expertise on the 77th Street project for all underground utility work. Therefore, the proposed agreement will be directly with OSM. The agreement calls for OSM to provide engineering supervision, surveying, inspection and materials testing services to assure that the construction contractor follows the construction plans and specifications. The contract amount for these services is under $325,000. This represents about 9% of the $3.6 million construction contract and is a reasonable cost for this type of project. A copy of the proposed agreement will be available at the Council meeting for review. The construction engineering agreement also will be submitted for review and approval by the Minnesota Department of Transportation. Funds for the work will come from federal highway funds (80%); Minnesota State Trunk Highway funds (15%); and, Richfield's Municipal State Aid Streets Funds (5%). Recommended Motion: Approve the construction engineering agreement with OSM & Associates for construction engineering on the Humboldt Avenue Storm Sewer Project. Basis of Recommendation: __ 1. The City-does not have available necessary and qualified personnel and facilities to conduct the services described in the proposed agreement. 3G-~ 2. City staff have reviewed the agreement and found the fees are reasonable for the services to be provided. 3. The consultant has been performing the inspection work on the 77th Street Project in an acceptable manner. Alternative Recommendation: None. Discussion/Decision Mode: A decision is needed so the consultant can be reimbursed for the work needed to complete the inspection of Humboldt Avenue Storm Sewer Project. Respectfully submitted, Ja a D. Prosser City anager JDP:cak CITY OF RICHFIELD, MINNESOTA Council. Letter No 175 Agenda July 10, 1995 Issue Statement: Consideration of a resolution authorizing approval of a cooperative agreement with the Minnesota Department of Transportation for the State share of the costs. of construction and construction engineering services for the Humboldt Avenue Storm Sewer Project Background: A cooperative agreement describes the State of Minnesota's funding contribution towards the reconstruction of 77th Street. This agreement provides the 15% state share of the costs for the Humboldt Avenue Storm Sewer Project. It also provides for the 5% reimbursement of City costs previously incurred by the City prior to receiving federal funds for the 77th Street Project. Costs covered in the agreement. include construction and construction engineering. The Humboldt Avenue project will cost a combined $4.0 million for both construction and construction engineering services. ,Based on these figures the Minnesota Department of Transportation will fund 20%, or approximately $800,OOD of project costs using Minnesota State Trunk Highway funds. The balance of funds for the Humboldt Avenue Storm Sewer Project will come from federal highway funds (80%.) The City will be responsible-for some ineligible storm sewer work. in the amount of $4,500. Funding for this work will come from. the City's Storm Water Utility Fund. Recommended Motion: Approve the attached resolution on the cooperative agreement with .the. Minnesota Department of Transportation to receive State funds to finance construction and construction engineering on the Humboldt Avenue Storm Sewer Project of the 77th Street Project. Basis of Recommendation: 1. City staff has reviewed the proposed cooperative agreement and found it consistent with the terms of previous agreements with the Minnesota Department of Transportation on the 77th Street Project. 2. Approval of the cooperative agreement is needed before the .City can be reimbursed by the State of Minnesota .for 20% of the costs for construction and construction ..engineering on the Humboldt Avenue Storm Sewer Project. Alternative Recommendation: None. ~~ i Discussion/Decision Mode: A decision is needed soon to ensure timely reimbursement for costs incurred by the City on the Humboldt Avenue Storm Sewer Project. Respectfully submitted, Jame .Prosser -City ager JDP:cak ~r--~ RESOLUTION NO. RESOLUTION AUTHORIZING APPROVAL OF COOPERATIVE AGREEMENT NO. 73314 WITH THE STATE OF MINNESOTA DEPARTMENT OF TRANSPORTATION REGARDING THE 77th STREET PROJECT WHEREAS, the Minnesota Department of Transportation (MnDOT) and the City of Richfield (City) negotiated Cooperative Agreement No. 73314 on the 77th Street Reconstruction Project; and WHEREAS, the Cooperative Agreement No. 73314 provides State funds far the City to pay for the construction and construction engineering services on the Humboldt Avenue Storm Sewer Project of the 77th Street Reconstruction Project. NOW, THEREFORE, BE IT RESOLVED that the City of Richfield enter into Cooperative Agreement No. 73314 with the State of Minnesota, Department of Transportation for the following purposes, to wit: to provide for payment by the State to the City of Richfield of the State's share of the construction, and construction engineering and inspection costs incurred by the City for roadway, noise wall, storm sewer, sanitary sewer and water main construction and other associated construction to be performed upon, along and adjacent. to Humboldt Avenue from Engineer Station 7+80.10 (76th Street) to Engineer Station 39+70.33 (Wood Lake) within the City of Richfield under State Projects No. 2785-292 (T.H. 494=393), No. 157-108-19 and 157-108-22. BE IT FURTHER RESOLVED, that the Mayor and City Manager are hereby authorized and directed to execute such agreement. Adopted by the City Council of the City of Richfield, Minnesota this 10th day of July, 1995. Martin J. Kirsch, Mayor ATTEST: Thomas P. Ferber, City Clerk ~Y CITY OF RICHFIELD, MINNESOTA Council Letter No. 1~4 Agenda July 10, 1995. Issue Statement: Approval of resolution declaring costs to be assessed for removal of diseased trees from-private property for the period January 1, 1994 to December31, 1994, and approval of resolution setting date of hearing. Background: The costs to be assessed for the removal. of Dutch Elm diseased trees on private property for the period of ,January 1, 1994 to December 31, 1994 have been determined to be $27,229.40. The property owner of a diseased tree has four options available: 1. Remove the tree themselves. 2. Hire and pay their own contractor. 3. Hire the City's contractor and pay for the removal within 30 days,. or 4. Use the City's contractor and request that the cost of the tree removal be assessed- against their property tax. In the period from January 1,.1994 to December 31, 1994, 38 property owners chose the fourth option. The original source of funding to have the work done is through the City's Permanent Improvement Revolving (PIR) Fund. The property owner may prepay the special assessment, but if it is certified on or before October 10, 1995, for the 1996 taxes,: the interest rate is eight percent with payment spread over three years. Recommended Motion: Adopt the attached resolution declaring costs to be assessed and ordering the preparation of the proposed assessment roll, and adopt the resolution setting the date of hearing. on the proposed assessment. for August 28, 1995. Basis of Recommendation: 1. The work has been done with prior. approval from the affected residents. 2. Minnesota State Statute requires the County to be notified of all special assessments. Alternative Recommendation: Council may revise the special assessment roll as deemed necessary following the public hearing. Discussion/Decision Mode: All work was performed with prior approval from home owners. Staff is requesting adoption of the attached resolutions at this time in order to meet certification deadlines. ~ Respe f ly submitted, Jame .Prosser City ager ~~l RESOLUTION NO. RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR REMOVAL OF DISEASED TREES FROM PRIVATE PROPERTY FOR THE PERIOD OF JANUARY 1, 1994 TO DECEMBER 31, 1994. WHEREAS, costs have been determined for the removal of diseased trees from the following private properties in the City of Richfield and the expenses incurred or to be incurred for such. work during the period of January 1, 1994 through December 31, 1994 amount to $27,229.40. Property Address Property Identification Number 6718 Third Avenue 27-02824-42-0120 67.14 Humboldt Avenue 28-02824-31-0003 6732 Garfield Avenue.. 27-02824-32-0050 .6511 Logan Avenue 28-02824-24-0094 6515 Logan Avenue 28-02824-24-0093 6840 Harriet Avenue 27-02824-33-0100 6635 Knox Avenue 28-02824-31-0035 6444 Clinton Avenue 27-02824-14-0076 7500 Blaisdell Avenue 34-02824-31-0096 7332 Penn Avenue 32-02824-14-0002 6915 Fourth Avenue 27-02824-44-0047 2717 West 66th Street 29-02824-42-0005 6424 Portland Avenue 27-02824-14-0003 6434 Humboldt Avenue 28-02824-24-0008 7324 Aldrich Avenue 33-02824-14-0022 6341, Longfellow Avenue 25-02824-22-0017 6636 Lynnwood Boulevard. 28-02824-42-0.074 6805 Irving Avenue 28-02824-34-0008 6220 Girard Avenue 28-02824-12-0006 11 East 68th Street 27-02824-43-0112 6715 Emerson Avenue 28-02824-42-0061 7332 Grand Avenue 34-02824-23-0005 7133 Lyndale Avenue 34-02824-22-0055 6925 Thomas Avenue 29-02824-44-01-05 7049 Oak Grove Boulevard 33-02824-11-0016 6832 Grand Avenue 27-02824-33-0081 6900 Knox Avenue 28-02824-34-0123 6906 Knox Avenue 28-02824-34-0124 7439 Upton Avenue 32-02824-42-0010 6514 Knox Avenue 28-02824-24-0083 6615 Lynnwood Boulevard 28-02824-41-0027 6406-16th Avenue 26-02824-14-0005 7340 Bryant Avenue 33-02824-14-0046 7244 Garfield Avenue 34-02824-23-0097 7209 Garfield Avenue 34-02824-23-0083 a~- - 6313 Aldrich Avenue 1700 West 66th Street 7031 Fifth Avenue 28-02824-11-0038 28-02824-24-0102 34-02824-11-0081 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota: 1. The total cost to be assessed against benefited property owners is declared to be $27,229.40. 2. The City Clerk shall forthwith calculate the proper amount to be specially assessed for such work against each benefited property, and shall file a copy of such proposed assessment in his office for public inspection. 3. The Clerk shall, upon the completion of such proposed assessment, notify the City Council thereof. Adopted by the City Council of the City of Richfield this 10th day of July, 1995. Martin J. Kirsch ATTEST: Mayor Thomas P. Ferber City Clerk ~~ RESOLUTION NO. RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT FOR DISEASED TREE REMOVAL FROM PRIVATE PROPERTY FOR THE PERIOD JANUARY 1, 1994 TO DECEMBER 31, 1994. WHEREAS, by a resolution passed by the City Council of the City of Richfield on July 10, 1995, the City Clerk was directed to prepare the assessment of the cost of removing diseased trees from the following private properties in the City of Richfield for the period January 1, 1994 through December 31, 1994. Property Address Property Identification Number 6718 Third Avenue 27-02824-42-0120 6714 Humboldt Avenue 28-02824-31-0003 6732 Garfield Avenue 27-02824-32-0050 6511 Logan Avenue 28-02824-24-0094 6515 Logan Avenue 28-02824-24-0093 6840 Harriet Avenue 27-02824-33-0100 6635 Knox Avenue 28-02824-31-0035 6444 Clinton Avenue 27-02824-14-0076 7500 Blaisdell Avenue 34-02824-31-0096 7332 Penn Avenue 32-02824-14-0002 6915 Fourth Avenue 27-02824-44-0047 2717 West 66th Street 29-02824-42-0005 6424 Portland Avenue 27-02824-14-0003 6434 Humboldt Avenue 28-02824-24-0008 7324 Aldrich Avenue 33-02824-14-0022 6341 Longfellow Avenue 25-02824-22-0017 6636 Lynnwood Boulevard 28-02824-42-0074 6805 Irving Avenue 28-02824-34-0008 6220 Girard Avenue 28-02824-12-0006 11 East 68th Street 27-02824-43-0112 6715 Emerson Avenue 28-02824-42-0061 7332 Grand Avenue 34-02824-23-0005 7133 Lyndale Avenue 34-02824-22-0055 6925 Thomas Avenue 29-02824-44-0105 7049 Oak Grove Boulevard 33-02824-11-0016 6832 Grand Avenue 27-02824-33-0081 6900 Knox Avenue 28-02824-34-0123 6906 Knox Avenue 28-02824-34-0124 7439 Upton Avenue 32-02824-42-0010 6514 Knox Avenue 28-02824-24-0083 6615 Lynnwood Boulevard 28-02824-41-0027 6406-.16th Avenue 26-02824-14-0005 3F ~{ 7340 Bryant Avenue 7244 Garfield Avenue 7209 Garfield Avenue 6313 Aldrich Avenue 1700 West 66th Street 7031 Fifth Avenue 33-02824-14-0046 34-02824-23-0097 34-02824-23-0083 28-02824-11-0038 28-02824-24-0102 34-02824-11-0081 WHEREAS, the City Clerk has notified the City Council that such proposed assessment has been completed and filed in his office for public inspection. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota: 1. A hearing shall be held on the 28th day of August, 1995, in the City Hall Council Chambers at 7 p.m., or as soon as hereafter as it may be reached on the agenda, to pass upon such proposed assessment and at such time and place all persons owning property affected by said diseased tree removal assessment will be given an opportunity to be heard in reference to such assessment. 2. The City Clerk is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper at least two weeks prior to the hearing, and he shall state in the notice the total cost of the diseased tree removal. He shall also cause mailed notice to be given to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearing. By order of the City Council of the City of Richfield, Minnesota this 10th day of July, 1995. Martin J. Kirsch ATTEST: Mayor Thomas P. Ferber City Clerk iJ CITY OF RICHFIELD, MINNESOTA Council Letter No,173 Agenda July 10, 1995 Issue Statement: Resolution relating. fo 1996 maintenance assessments, LHN (Lyndale/HUB/Nicollet) Redevelopment Area, City Project No. 912. Background: On January 26, 1981, the City Council adopted Resolution No. 6372, which established a service in the LHN area (approximately bounded by 64th Street, First Avenue, 67th Street and Emerson Avenue) which. would. be specially assessed. The special assessment to commercial property would be made on the basis of area, with each square foot of assessable commercial property within the district being assessed an equal amount. All single family, two family and multiple family. residential property within, this area were eliminated from the special assessment levy. In 1982, agreements were. reached with owners in the LHN -area related to maintenance of property. For the most part, each owner was to be responsible for property to the curb while the City is responsible for common areas such as street islands. Although the City does perform some maintenance work for individual property owners, these costs are directly assessed to the appropriate owner and maintenance of common areas continues to be assessed to the entire district.: Current maintenance services for the district would include, but not necessarily be limited to, one or more of the following: 1. Landscaping, including tree trimming; 2. Sidewalk sweeping in the summer; 3. Snow removal in the winter; 4. Sidewalk deicing; 5. Painting and repair of wood furniture; 6. Trash removal; 7. General maintenance, including repairs and replacement; 8. Irrigation maintenance. -These items are extra services provided directly to the LHN Redevelopment Area and do not. include services provided to the entire City. For example, all City streets are swept twice a year, and for this service there would be no charge to the LHN maintenance assessment. However, any additional street sweeping in the LHN area would be an assessable item. Estimated and actual costs for LHN maintenance services 1989 - 1996 were/are: ~D-I Year Estimated Actual -1989 $43,151.19 1990 $44,560 $43,539.10 1991 $44,153 $43,825.22 1992 $46,484. $47,005.26 1993 $45,050 $34,866.01 1994 $45,115 $44,635.70 1995 $45; 516 1996 $47,600 Recommended Motion: Adopt the attached resolution proposing to specially assess for the costs of current services provided within the LHN project area for the period of January 1, 1996 through December 31, 1996, and to set the public hearing date for August 28, 1995. Basis of Recommendation: 1. Resolution No. 6372, adopted in 1981, established a policy for assessing the costs. 2. This policy allows staff to continue to provide excellent service to the LHN Redevelopment Area. Alternative Recommendation: Council may choose to establish a set rate and limit the maintenance performed to that dollar amount; however, staff believes the redevelopment area would suffer if limited maintenance was performed. Discussion/Decision Mode: Continued maintenance service for this commercial area is recommended by staff in order to sustain the current standards for landscaping and maintenance which have been successful over the past years. Respectful submitted, James .Prosser City Manager JDP:cak 3U-~ RESOLUTION NO. RESOLUTION PROPOSING TO SPECIALLY ASSESS FOR THE COSTS OF CURRENT SERVICES PROVIDED WITHIN THE LYNDALE/HUB/NICOLLET PROJECT AREA FOR THE PERIOD JANUARY 1, 1996 THROUGH DECEMBER 31, 1996 CITY PROJECT NO. 912 BE IT RESOLVED by the -City Council of the City of Richfield, Minnesota as follows:. 1. There is hereby established a special assessment district,. the boundaries of which are conterminous with the Lyndale/Hub/Nicollet Redevelopment Project Area, for the purposes of assessing for current services provided by the City.. 2. The following current services of the City are hereby proposed to be undertaken by the City in the district, with the cost of such services to be specially assessed against benefited property within the district: Snow, ice or rubbish removal; Weed elimination; Elimination or removal of public health or safety hazards from private property, excluding and structure included under the provisions of Minnesota Statutes Section 463.15 to 463.26; Installation or repair of water service lines; Street sprinkling or other dust treatment of streets; Trimming and care of trees and the removal of unsound trees; Repair of sidewalks, crosswalks, and other pedestrian walkways; Operation of the street lighting system; Maintenance of landscaped areas. and other public amenities on or adjacent to street right-of-way; Maintenance of Civic Plaza; Snow removal and other maintenance of streets; Painting and repair of wood furniture; General maintenance, including repairs and replacemerit. 3. The area proposed to be specially assessed for-such current services consists of every assessable lot and. parcel of land within the district. It is proposed that special assessments on commercial property be made on the basis of the area with each square foot of assessable commercial property within the district being assessed an equal amount for maintenance of common area. Exempt from the special assessment levy shall be all single family, two-family, multiple family residential property within the LHN redevelopment district.. Special maintenance of individual commercial properties shall be assessed directly for costs incurred in performing said maintenance to said property. 3DP~. 4. The City Clerk is authorized and directed to give. public notice of a hearing by this Council at which the Council will consider the- undertaking of such current services and the levying of special assessments to bear the. costs thereof. The City Clerk shall give mailed and published notice of -such hearing as required by law. Such hearing shall be held on Monday, August 28, 1995, commencing at 7:00 p.m. or as soon thereafter as the matter can be reached on the. agenda. 5. It is hereby proposed that the project consist of the costs of the aforementioned services for the period of January 1, 1996 through December 31, 1996.. The estimated cost of providing all of the aforementioned current services during. that period is $47,600. Passed by the City Council of the City of Richfield, Minnesota this 10th day of July, 1995. Martin J. Kirsch, Mayor ATTEST: Thomas P. Ferber, City Clerk 3~ CITY OF RICHFIELD, MINNESOTA Council Letter No. 172. Agenda July 10, 1995 Issue Statement: Preparation of assessment. rolls. and setting hearing date for City Project 891, 1994 LHN (Lyndale/Hub/Nicollet Redevelopment, Area) Maintenance. Backaround: City staff has determined costs to be assessed for the maintenance of the Lyndale/Hub/Nicollet (LHN) Redevelopment Area, City Project 891, the 1.994 LHN Maintenance Project. Attached are resolutions declaring the costs to be assessed and ordering the preparation of the proposed assessment rolls, and setting the hearing date for the proposed assessment. Estimated and actual costs for the. LHN maintenance services 1988 -1996 were: Year Estimated Actual 1988 $44,159.33 1 ggg $40,614 $43,151.19 1990 $44,560 $43,539.10 1991 $44,153 $43,825.22 1992 $46,484 $47,005.26 1993 $45,322 $34,866.01 19.94 $45,277 $44,635:70 1995 $45,516 1996" $47,600 The increased costs in 1992 were due to streetlight repairs. Reduced costs in 1993 were the result of several factors; streetlight repair costs were down, -and those needed were made with parts inventoried in 1992. The wet summer of 1993 resulted in less. water used than usual, and less time, equipment and parts were needed to repair the irrigation system. Recommended Motion:. Adopt the resolution declaring costs to be assessed and ordering preparation of the proposed assessment roll for LHN maintenance, and adopt the resolution setting the date of hearing on the proposed assessment for August 28, 1995. Basis of Recommendation: Council ordered the work, and the work is complete. Alternative Recommendation: Council may. make .any changes to the assessment roll as deemed necessary after the public hearing. 3c- l Discussion/Decision Mode: In order to meet certification deadlines, staff is requesting approval at this time. Respectfully submitted, Ja D. Prosser City anager JDP:cak ~c9a. RESOLUTION NO. RESOLUTION DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR LHN MAINTENANCE JANUARY 1, 1994 THROUGH DECEMBER 31, 1994 CITY PROJECT NO. 891 WHEREAS, costs have been determined for the maintenance of the Lyndale/Hub/Nicollet (LHN) Redevelopment Area which is approximately bounded by 64th Street, First Avenue, 67th Street and Emerson Avenue in the City of Richfield and the expenses incurred or to be incurred for such maintenance amount to $44,635.70 far the period of January 1, 1994 through December 31, 1994. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota: 1. The portion of the cost to be assessed against benefited property owners is declared to be $44,635.70. 2. The City Clerk, with the assistance of the City Engineer and the Operations Coordinator, shall forthwith calculate the proper amount to be specially assessed for such maintenance against every assessable lot, piece or parcel of land within the district affected, without regard to cash valuation, as provided by law, and shall file a copy of such proposed assessment in his office for public inspection. 3. The City Clerk. shall, upon the completion of such proposed assessment, notify the City Council thereof. Adopted by the City Council of the City of Richfield, Minnesota this 10th day of July, 1995. Martin J. Kirsch Mayor ATTEST: Thomas P. Ferber City Clerk 3C-3 RESOLUTION NO. RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT FOR LHN MAINTENANCE JANUARY 1, 1994 THROUGH DECEMBER 31, 1994 CITY PROJECT NO. 891 WHEREAS, by a resolution passed by the City Council of the City of Richfield on July 10, 1995, the City Clerk was directed to prepare a proposed assessment of the cost of maintaining the Lyndale/Hub/Nicollet (LHN) Redevelopment Area which is approximately bounded by 64th Street, First Avenue, 67th Street and Emerson Avenue in the City of Richfield, Minnesota for the period of January 1, 1994 through December 31, 1994. WHEREAS, the City Clerk has notified the City Council that such proposed assessment has been completed and filed in his office for public inspection. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota: 1. A hearing shall be held on the 28th day of August, 1995, in the Council Chambers of the City Hall at 7:00 p.m. to pass upon such proposed assessment and at such time and place all persons owning property affected by said maintenance assessment will be given an opportunity to be heard in reference to such assessment. 2. The City Clerk is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper at least two weeks prior to the hearing, and he shall state in the notice the total cost of the maintenance. The City Clerk shall also cause mailed notice to be given to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearing. Adopted by the City Council of the City of Richfield, Minnesota this 10th day of July, 1995. Martin J. Kirsch Mayor ATTEST: Thomas P. Ferber City Clerk 3~ CITY OF RICHFIELD, MINNESOTA Council Letter No. 1 ~ 1 Agenda July 10, 1995 Issue Statement: Proposed 1996 alley maintenance special assessment project, City Project No. 913. Background: The alley policy adopted by the City Council in 1980 provides that "all costs involved in maintaining an alley will be assessed against the property abutting the alley." In 1981, the maintenance functions to unpaved alleys covered sweeping, cleaning of potholes and cold patching. In _1982. and years. since, the maintenance functions- covered by this assessment included not only repair work to unpaved alleys, but also an assessment to all alleys, paved or unpaved, for snowplowing services. A concrete joint sealing maintenance program for paved alleys was initiated in the 1989 alley maintenance program. In 1994, staff obtained estimates for the joint sealing in paved alleys. Due to the small quantity of work, the prices quoted were exorbitant. In previous years, this work had been included with the larger concrete street repair program, and prices were reasonable; but that program was reduced by budget cuts to the point where there is no longer the volume of work to produce good prices. In order to obtain reasonable prices for this work, staff needed to double the quantities. No work for joint sealing was performed in 1994. A large project was awarded in 1995, and no work will be performed in 1996. However, to bank monies for this type of biannual bidding, we need to assess a constant $20,000 each year for alley maintenance. Estimated and actual costs for the alley maintenance services 1989 - 1996 are: Year Estimated Actual 1989 $20,000 $17,725.98 1990 $20,000 $17,213.95 1991 $20,000 $21,426.94 1992 $20,000 $19,752.06 1993 $20,000 $17,833.49 1994 $20,000 $20,000.00 1995 $20,000 1996 $20,000 For 1996, the estimate is $20,000 for alley maintenance or approximately $10.75 for a 50-foot lot. Seven dollars and seventy-five cents per lot is the estimate for sweeping and a normal winter of snowplowing. The additional $3 per lot, which will be contracted on a biannual basis, is an estimate of costs to continue a concrete joint sealing maintenance program on paved alleys as a part of routine maintenance. Estimates of additional costs on unpaved alleys each year have been about $23 per lot. Costs have varied depending on the amount of patching required. ~~-/ Recommended Motion: Adopt the attached resolution which proposes to specially assess $20,000 for 1996 services for alley maintenance and sets the public hearing on this special assessment project for August 28, 1995. Basis of Recommendation: 1. Previously adopted policy mandates the assessments. 2. The. project is feasible. Alternative Recommendation: Council may.choose.#o_continue assessing only_actual costs each year. However, the biannual crack repair policy would cause the assessment to fluctuate considerably, and residents complain when even minor changes occur in the assessment amounts, due to more or less snow plowing costs. Discussion/Decision Mode: Council may choose to delay adoption of this resolution until the next meeting; however, any further delay would cause scheduling problems with legal notices required by Minnesota State Statute. Respe fully submitted, Ja D. Prosser City Manager JDP:cak /~ " RESOLUTION NO. RESOLUTION. PROPOSING TO SPECIALLY ASSESS FOR THE COSTS OF CURRENT SERVICES PROVIDED FOR ALLEY MAINTENANCE IN THE CITY OF RICHFIELD JANUARY 1, -1996 THROUGH DECEMBER 31, 1996 CITY PROJECT NO. 913 BE IT RESOLVED by the City Council of the City of Richfield, Minnesota, as follows: 1. That area which includes the property which abuts improved alleys in Richfield (the "District") is hereby. established__as a special. assessment district for the purpose of assessing for current services provided by the City; 2. That the following current services of the City are. hereby proposed to be undertaken by the City in the District with the cost of such services to be specially assessed against the benefited property within- the District: the maintenance and snowplowing of alleys; 3. The area proposed to be specially assessed for such current services consists of every assessable lot and parcel of land within the District. It is proposed that special assessments on property be made on the basis of prorated share of assessable .abutting footage as defined in the alley improvement policy, Resolution. No. 6345; 4. That the City Clerk is authorized and directed to publish notice of a public hearing by this Council at which time the Council will consider the undertaking of such current services and the levying of special assessments to bear the costs thereof. Such notice shall be published in the official newspaper at least once and at least two weeks prior to the date of hearing. Such hearing shall be held on Monday, August 28, 1995, commencing at 7:00 p.m. or as soon thereafter as the matter can be reached on the agenda. 5. It is hereby proposed that the project consist of the costs of the aforementioned services for the period from January 1, 1996 through December 31, 1996.. The estimated cost of providing all of the aforementioned current services during that period, using day labor, is $20,000. 6. That the project is feasible. Passed by the City Council of the City of Richfield, Minnesota, this 10th day of July, 1995. Martin J. Kirsch Mayor ATTEST: Thomas P. Ferber City Clerk 3~ CITY OF RICHFIELD, MINNESOTA Council Letter No. i~o Agenda July 10, 1995 Issue Statement: Resolution declaring costs to be assessed for alley .maintenance and snowplowing for the period January 1, 1994 to December 31, 1994, and setting a public hearing date for City Project No. 893, 1994 Alley Maintenance.. Background: City staff has determined costs to be assessed for alley maintenance, City Project No 893. Attached are resolutions declaring the costs to be assessed and ordering the preparation of the proposed assessment rolls, and setting the hearing date for the proposed assessment. Property owners on permanently paved concrete alleys are assessed for snowplowing, joint repair, and patching work done on the alley right of way. Estimated and actual costs for the alley maintenance. services 1988 - 1996 were: Year Estimated Actual 1988 $ 8,453.93 1989 $20,000 $17,725.98 1990 $20,000 $17,213.95 1991 $20,000 $21,426.94 1992 $20,000 $19,752.06 1993 $20,000 $17,833.49 1994 $20,000 $20,000.00 1995 $20,000 1996 $20,000 * In 1994, only the cost of snow removal and sweeping was actually expended. Crack repair bids were very high because of small quantities and were rejected. Staff would like to assess the full estimated $20,000 for 1994, and use the funds to help pay for a large quantity crack repair contract in 1995. This biannual repair contract would provide better prices; and a fixed assessable amount will reduce resident complaints of fluctuating maintenance assessments for alleys. Recommended Motion: Adopt the attached resolution declaring the costs to be assessed and ordering the preparation of the proposed assessment roll; and adopt the attached resolution setting the date of hearing on the proposed assessment for August 28, 1995. Basis of Recommendation: 1. Council ordered this work to be performed ~~~1 2. Adoption of the resolutions at this time will allow adequate time for staff to complete necessary legal requirements in order to meet certification deadlines. Alternative Recommendation: Council may revise the special assessment roll after the public hearing as deemed necessary. Discussion/Decision Mode: Council. may choose to delay action on the attached resolutions; however, Minnesota State Law requires specific notices and public meetings, and scheduling problems may occur beyond a two week delay. Respectfully submitted, Jam D. Prosser City Manager. JDP:cak 3~-~ RESOLUTION NO. RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR 1994 ALLEY MAINTENANCE AND SNOWPLOWING -CITY PROJECT NO. 893 WHEREAS, costs have been determined for the maintenance and snowplowing of the following alleys in the City of Richfield. The expenses incurred or to be incurred for such maintenance and snowplowing for the period of January 1, 1994 through December 31, 1994 amount to $20,000. Number Surroundina Avenues Surroundina Streets 1001 Xerxes -Washburn 66th - 67th 1002 Xerxes -Washburn 67th - 68th 1003 Xerxes -Washburn 68th - 69th 1004 Xerxes -Washburn 69th - 70th 1005 Washburn -Vincent 66th - 67th 1006 Washburn -Vincent 67th - 68th 1007 Washburn -Vincent 68th - 69th 1008 Washburn -Vincent 69th - 70th 1009 Vincent -Upton 66th - 67th 1010 Vincent -Upton 67th - 68th 1011 Vincent -Upton 68th - 69th 1012 Vincent -Upton 69th - 70th 1013 Upton -Thomas 66th - 67th 1014 Upton -Thomas 68th - 69th 1015 Upton -Thomas 69th - 70th 1016 Thomas -Sheridan 66th - 67th 1017 Thomas -Sheridan 67th - 68th 1018 Thomas -Sheridan 68th - 69th Resolution No. Number Surrounding Avenues Surroundina Streets 1019 Thomas -Sheridan 69th - 70th 1020 Sheridan -Russell 66th - 67th 1021 Sheridan -Russell 67th - 68th 1022 Sheridan -Russell 68th - 69th 1023 Sheridan -Russell 69th - 70th. .1024 Russell -Queen 66th - 67th 1025 Russell -Queen 67th - 68th 1026 Russell -Queen 68th - 69th 1027 Russell -Queen 69th - 70th 1028 Queen -Penn 66th - 67th 1029 Queen -Penn 67th - 68th 1030 Queen -Penn 68th - 69th 1031 Queen -Penn 69th - 70th 2001 Penn -Oliver 63rd - 64th 2002 Oliver -Newton 63rd - 64th 2004 Morgan -Logan 63rd - 64th 2005 Logan -Knox 63rd - 64th 2007 James -Irving 63rd - 64th 2008 Irving -Humboldt 63rd - 64th 2009 Humboldt -Girard 63rd - 64th 2010 Girard -Fremont (35VV) 63rd - 64th 2011 Girard -Fremont (35V~ 64th - 65th 2012 Girard -Fremont (351N) 65th - 66th 2013 Fremont (35V~ -Emerson 64th - 65th 2014 Fremont (35V1n -Emerson 65th - 66th 2015 Dupont -Colfax 63rd -Mildred 3~- 3 page 2 3A-~ Resolution No. Number Surroundina Avenues Surroundina Streets 2016 Colfax -Bryant 63rd.- Mildred 2017 Bryant -Aldrich 63rd -Mildred 2019 Graham -Lyndale.. 66th - Lk Shr Dr 2020 Aldrich -Lyndale 75th - 76th 2021 Aldrich -Lyndale 76th - 77th 3002 Lyndale -Garfield 68th - 69th 3003 Augsburg -Garfield ~ 70th - 71st 3004 Augsburg -Garfield 71st - 72nd 3005 Lyndale -Garfield 72nd - 73rd 3006 Lyndale -Garfield 73rd - 74th 3007 Garfield -Harriet 71st - 72nd 3008 Garfield -Harriet 72nd - 73rd 3009 Garfield -Harriet 73rd - 74th 3011 Harriet -Grand 67th - 68th 3012 Harriet -Grand 68th - 69th 3013 Harriet -Grand 72nd - 73rd 3014 Harriet -Grand 73rd -74th .3015 Grand -Pleasant 68th - 69th 3016 Grand -Pleasant 72nd - 73rd 3018 Wentworth -Blaisdell 67th - 68th 3020 Blaisdell -Nicollet 72nd - 73rd 3021 Blaisdell -Nicollet 73rd - 74th 3022 Blaisdell -.Nicollet 74th - 75th 3023 Blaisdell -Nicollet 75th - 76th 3024 Nicollet - 2nd Avenue 68th - 69th 3025 Nicollet - 1st Avenue 70th - 71st page 3 3~, `' Resolution No. page 4 Number. Surroundina- Avenues Surroundina Streets 3026 Nicollet - 1st Avenue 71st - 72nd 3027 Nicollet - 1st Avenue 72nd - 73rd 3028 1st -Stevens 71st - 72nd 3029 1st -Stevens 72nd - 73rd . 3030 Stevens - 2nd Avenue 71st - 72nd 3031 Stevens - 2nd. Avenue 72nd- 73rd 3032 2nd - 3rd Avenue 66th - 67th 3033 2nd - 3rd..Avenue 71st - 72nd 3034 2nd - 3rd Avenue 72nd - 73rd 3035 3rd -Clinton 66th - 67th 3036. 3rd -Clinton 73rd - 74th 3037 Clinton - 4th Avenue 66th - 67th 3038 Clinton - 4th Avenue 73rd - 74th 3039 4th --5th Avenue 66th - 67th 3040 4th - 5th. Avenue 73rd - 74th 4001 13th - 14th Avenue 65th - 66th 4002 14th - 15th Avenue 62nd - 63rd 4004 15th -Bloomington 62nd - 63rd 4005. 15th -Bloomington 65th -66th 4006 Bloomington - 16th Avenue 65th - 66th 4007 Cedar -Longfellow. 63rd - 64th 4008 Cedar -Longfellow 64th - 65th 4009 Cedar -Longfellow 65th - 66th 4012 22nd -Standish 65th - 66th 4013 13th -.14th Avenue 66th - 67th 3~' LO Resolution No. page. 5 NOW, THEREFORE,. BE IT RESOLVED by the City Council of the City of Richfield, Minnesota: 1. The portion of the cost to be assessed against benefited property owners is declared to be $20,000. 2. The. City Clerk shall forthwith calculate the proper amount to be specially assessed for such maintenance against every assessable lot, piece or parcel of land affected, without regard to cash valuation as provided by law, and shall file a copy of such proposed assessment in his office for public inspection. 3. The Clerk shall, upon the completion of such proposed assessment, notify the City Council thereof. Adopted by the City Council of the City of Richfield this 10th day of July, 1.995. Martin J. Kirsch Mayor ATTEST: Thomas P. Ferber City Clerk ~~ ~ RESOLUTION NO. RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT FOR 1994 ALLEY MAINTENANCE -CITY PROJECT NO. 893 WHEREAS, by a resolution passed by the. City Council of the City of Richfield on July 10, 1995, the City Clerk was directed to prepare assessment of the cost of maintaining the following alleys in the City of Richfield-for the period of January 1, 1994 through December 31, 1994. Number Surroundina Avenues Surroundina Streets 1001 Xerxes -Washburn 66th - 67th 1002 Xerxes -Washburn 67th - 68th 1003 Xerxes -Washburn 68th - 69th 1004 Xerxes -Washburn 69th - 70th 1005 Washburn -Vincent 66th - 67th 1006 Washburn -Vincent 67th - 68th 1007 Washburn -Vincent 68th - 69th 1,008 Washburn -Vincent 69th - 70th 1009 Vincent -Upton 66th - 67th 1010 Vincent -Upton 67th - 68th 1011 Vincent -Upton 68th - 69th 1012 Vincent -Upton 69th - 70th 1013 Upton -Thomas 66th - 67th 1014 Upton -Thomas 68th - 69th 1015 Upton -Thomas 69th - 70th 1016 Thomas -Sheridan 66th - 67th 1017 Thomas -Sheridan 67th - 68th 1018 Thomas -Sheridan 68th - 69th Resolution No. Number Surroundina Avenues Surroundina Streets 1019 Thomas -Sheridan 69th - 70th 1020 Sheridan -Russell 66th - 67th 1021 Sheridan -Russell 67th - 68th 1022 Sheridan -Russell 68th - 69th 1023 Sheridan -Russell 69th - 70th 1024 Russell -Queen 66th - 67th 1025 Russell -Queen 67th - 68th 1026 Russell -Queen 68th - 69th 1027 Russell -Queen 69th - 70th 1028 Queen -Penn 66th - 67th 1029 Queen -Penn 67th - 68th 1030 Queen -Penn 68th - 69th 1031 Queen -Penn 69th - 70th 2001 Penn -Oliver 63rd - 64th 2002 Oliver -Newton 63rd - 64th 2004 Morgan -Logan 63rd - 64th 2005 Logan -Knox 63rd - 64th 2007 James -Irving 63rd - 64th 2008 Irving.- Humboldt 63rd - 64th 2009 Humboldt -Girard 63rd - 64th 2010 Girard -Fremont (35V~ 63rd - 64th 2011 Girard -Fremont (35VV) 64th - 65th 2012 Girard -Fremont (35V1/) 65th - 66th 2013 Fremont (35V1/) -Emerson 64th - 65th 2014 Fremont (351/ -Emerson 65th - 66th 2015 Dupont -Colfax 63rd -Mildred /~" 11 page 2 ~/ / ~~ Resolution No. Num er Surrounding Avenues Surroundina Streets 2016 Colfax -Bryant 63rd -Mildred 2017 Bryant -Aldrich 63rd -Mildred 2019 Graham -Lyndale .66th - Lk Shr Dr 2020 Aldrich -Lyndale 75th - 76th 2021 Aldrich -Lyndale 76th - 77th 3002 ~ Lyndale -Garfield 68th - 69th 3003 Augsburg -Garfield 70th - 71st 3004 Augsburg - Ga~eld 71st - 72nd 3005 Lyndale -Garfield 72nd - 73rd 3006 Lyndale -Garfield 73rd - 74th 3007 Garfield -Harriet 71st - 72nd 3008 Garfield -Harriet 72nd - 73rd 3009 Garfield -Harriet 73rd - 74th 3011 Harriet -Grand 67th - 68th 3012 Harriet -Grand 68th - 69th 3013 Harriet -Grand 72nd - 73rd 3014 Harriet -Grand 73rd - 74th 3015 Grand -Pleasant 68th - 69th 3016 Grand -Pleasant 72nd - 73rd 3018. Wentworth -Blaisdell 67th - 68th 3020 Blaisdell -Nicollet 72nd - 73rd 3021 Blaisdell -Nicollet 73rd - 74th 3022 Blaisdell -Nicollet 74th - 75th 3023 Blaisdell -Nicollet 75th - 76th 3024 Nicollet - 2nd Avenue 68th - 69th 3025 Nicollet - 1st Avenue 70th - 71st page 3 3A-1~ Resolution No. page 4 Number Surrounding Avenues Surrounding Streets- 3026 Nicollet - 1st Avenue 71st - 72nd 3027 Nicollet - 1st Avenue 72nd - 73rd 3028 1st -Stevens 71st - 72nd 3029 1st -Stevens 72nd - 73rd 3030 Stevens - 2nd Avenue 71st - 72nd .3031 Stevens - 2nd Avenue 72nd -.73rd 3032 2nd -3rd Avenue 66th - 67th 3033 2nd - 3rd Avenue 71st - 72nd 3034 2nd - 3rd Avenue 72nd - 73rd 3035 3rd -Clinton 66th - 67th 3036 3rd -Clinton 73rd - 74th 3037. Clinton - 4th Avenue 66th - 67th. 3038 Clinton - 4th Avenue 73rd - 74th 3039 4th - 5th Avenue 66th - 67th 3040 4th - 5th Avenue. 73rd - 74th 4001 13th - 14th Avenue 65th - 66th 4002 14th - 15th Avenue 62nd - 63rd 4004 15th -Bloomington 62nd - 63rd 4005 15th -Bloomington 65th - 66th 4006 Bloomington - 16th Avenue 65th - 66th 4007 .Cedar -Longfellow 63rd - 64th 4008 Cedar -Longfellow 64th - 65th 4009. Cedar -Longfellow 65th - 66th 4012 22nd -Standish 65th - 66th 4013 13th - 14th Avenue 66th - 67th 3A~ l1 Resolution No. page 5 ~`- WHEREAS,-the City Clerk has notified the City Council that such proposed assessment has been completed and filed in his office for public inspection.. NOW, THEREFORE, BE IT RESOLVED by the -City Council of the City of Richfield, Minnesota: 1. A hearing shallbe held on the 28th day of August, 1995, in the Council Chambers of the City Hall at 7:00 p.m. or as soon thereafter as the matter may be reached on the agenda, to pass upon such proposed assessment. At such time and place all persons owning property affected by said- maintenance -assessment will be given an opportunity to be heard in reference to such assessment. 2. The City Clerk is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper at least two weeks prior to the. hearing. He shall state. in the notice-the total cost of the maintenance, and also caused mailed notice to be given to ,the owner of each parcel described in the assessment roll, not less than two weeks prior to the hearing. Adopted by the City Council of the City of Richfield, Minnesota: this 10th day of July, 1995. ~. Martin J. Kirsch Mayor ATTEST: Thomas P. Ferber City Clerk