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12-05-94 agendaCITY OF RICHFIELD MONDAY, DECEMBER 5, 1994 REGULAR CITY COUNCIL STUDY SESSION 7:00 P.M. COUNCIL CHAMBERS AGENDA CALL TO ORDER I. 7:00-7:30 P.M. REVIEW OF PLANNING COMMISSION'S DRAFT STUDY AND PROPOSED REGULATIONS FOR ADULT USES STUDY SESSION LETTER NO. 30 II. 7:30-7:45 P.M. REVIEW OF CITY EMPLOYEE ROLE IN SOLICITATION FOR CHARITABLE ACTIVITIES STUDY SESSION LETTER NO. 31 III. 7:45-8:15 P.M. DISCUSSION OF CITY OF RICHFIELD 1995 LEGISLATIVE INITIATIVES STUDY SESSION LETTER NO. 32 IV. 8:15-8:45 P.M. DISCUSSION OF POLICY AND STRATEGY RECOMMENDATIONS FOR AIRPORT RELATED ISSUES STUDY SESSION LETTER NO. 33 V. 8:45-9:00 P.M. DISCUSSION OF 1995 MAINTENANCE ASSESSMENTS FOR ILN PROJECT AREA, PROPOSED CITY PROJECT N0. 901 STUDY SESSION LETTER NO. 34 VI. 9:00-9:15 P.M. REVIEW OF VALUES AND ATTITUDE SURVEY PROCESS STUDY SESSION LETTER NO. 35 9:15 P.M. 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 Study Session Letter No. 35 Agenda December 5, 1994 Issue Statement: Review of values and attitude survey process. Background The City Council has previously received background information on values and attitude training to be initiated with City staff. The purpose of the values and attitude program is to provide a more consistent framework for communication between employees and better understanding of the organizational values. The end result of the values and attitude training should be to provide a more constructive mechanism to deal with conflict within the organization. The expected full cost of the values and attitude training is $45,000. The cost will be paid from current or future years' budget savings. It is expected that the 1994 revised budget will include a line item reflecting this expense. The training was initiated December 2, 1994 and can be terminated at any time by the City. City employees have been introduced to the basic concept of the values and attitude training during this past week. Recommended Motion: This is a status report only. No action is required. Basis of Recommendation: The Council has requested a status report on this matter. Alternative Recommendation: None. Discussion/Decision Mode: This matter will be presented at the December 5 Study Session. Respectfully submitted, Jame Prosser City Manager JDP:ds Shared Values Process For City of Richf eld The following breakdown of services is for you review. We have priced these services on a total staff count of 210 people. These prices include all training materials. The enclosed contract should fiuther clarify additional items of interest. Module One-Shared ValuesTM Shared Values Frocess Description Timing & Duration Valves & Attitude Survey {VAS) 70 questions. This survey identifies 27 work environment elements. It should be re-administered every year. Report fit. discussed with principles before shared with Senior Management at the Values Retreat. • 20 minutes to fill out. • .Administered once a year to review change. Management Audit Interviews with senior managers who will attend the Management Retreat. One hour interviews. • Conducted before management attend Retreat. Management .Values Retreat Two day retreat. (2 groups) Survey review and debrief. Business Values developed. People Values Reviewed. Roles & Responsibilities of Management. Skills Training: Truth, Trust and Mentoring. Train-The-Trainer Establishes critical mass of supporters of the companies objectives and goals These informal leaders are an organization's greatest ally. One three-day Workshop. Comprehensive training with informal leaders. The purpose of this session is to prepare non- trainers to become facilitators in teams of two. There are 10 one hour facilitation sessions that each team will learn then share with their co-workers over a 10-12 week period. Module One -Shared ValuesTM (Continued) Shared Values Process Description (continued) Timing & Duration Organizational Values Training William Mills & Associates Observations & Facilitator Support (Week Three & Week Eight) A series of 10 -one hour workshops Administered by teams of facilitators trained in Train-The-Trainer session who will introduce this material to their peers and managers. Application Meetings Held monthly after the weekly values workshops are completed. It is in the Application Meetings that issues are discussed and actions and task forces established. New Employee Orientation Meetings Three to four times a year, experienced facilitators will introduce the value-based concept to new employees as part of their orientation. City of Richfield TERMS AND CONDITIONS Submitted November 17,1994. 1. TERMS OF PAYMENT: Include services for -Shared Values Module, $6,000 on contract signing. Balance paid monthly over the next 6 months of the contract ($6,191.67 monthly.) The total cost is $43,150: Payments include all training, consulting and material costs. Airfare, car rentals and lodging are billed separately and will be submitted on the 25th of each month. Reimbursements due 30 days upon receipt of expense reports. Z. CANCELLATION CLAUSE: This Agreement and its Terms and Conditions maybe canceled by either party with 60 (sixty) days written notice. If an averaging payment process is used, all unpaid services must be reconciled at termination of contract. 3. INTELLECTUAL CONTENT AND PROPERTIES: Unless express written permission is received from William Mills & Associates, all presented content both written and verbal is considered ©Copyright content owned and licensed by Lebow Company, Inc. The Process® cumculum and materials are copyright protected, all- rights reserved. No duplication of any material is permitted in any manner or form unless authorized in writing by Lebow Company, Inc. All materials developed for its clients become the property of William Mills &'Associates, Inc. 4. ANCILLARY COSTS: The client is responsible for all costs associated with training room rentals, refreshments, food and equipment. William Mills & Associates will bill client for all travel and lodging outside a 50 mile radius of its headquarters located in Edina, Minnesota. Any additional materials as needed and approved by the client will be the responsibility of the client and will be billed to the client. S. CLIENT CONFIDENTIALITY.• All client related information either supplied or generated in the course of providing training shall remain confidential. William Mills & Associates, Inc. agree to obtain express written permission of the client to identify the client in any materials William Mills & Associates, Inc. may use in the course of the promotion and marketing of its programs and services. 6. DEFAULT: In the event of default-under the terms of this agreement under which a party seeks enforcement through the services of an attorney, the prevailing party shall be entitled to attorney's fees and cost, in addition to any other remedy afforded by the court and will be adjudicated in the State of Minnesota, Hennepin County, U.S.A. City of Richfield PAYMENT SCHEDULE Submitted November 17, 1994 Module One -Shared ValuesTM First payment upon contract signing payment- 1 Shared Values portion of the Process® payment- 2 payment- 3 payment- 4 payment- 5 payment- 6 payment- 7 $6,000.00 due November 29 $6,191.66 due December 13 $6,191.66 due January 10 $6,191.67 due February 14 $6,191.67 due March 14 $6,191.67 due April 11 $6,191.67 due .May 9 Date: November 17, 1994 City of Richfield AGREEMENT William Mills & Associates agree to provide services as designated in this Agreement within the conditions set forth in this Agreement. • NAME AND ADDRESS OF CLIENT: City of Richfield 6700 Portland Avenue South Richfield, MN 55423-2599 • SCOPE AND NATURE OF WORK CONTRACTED FOR: Shared Values ProcessTM LOCATION: OF TRAINING: Council Chambers • DATE(s) TAG TO BE PROVIDED: Group One: December 2, 8 - 5 pm; December 5, 1 - 5 pm; December 8, 2 - 5:30. Group Two: December 6, 1 - 5 pm; December 7, 1 - 5, December 9, 8 - 5. • NUMBER OF PARTICIPANTS: 210 • FEE IN U.S. DOLLARS: Shared Values Process® $43,150 • MATERIALS: William Mills & Associates shall provide the client with participant materials sufficient for 210 participants. I have read and understand the services to be performed by William Mills & Associates. Also, I have read and understand the Terms and Conditions and agree to them. City of Richfield Date ~~ ~ ~' ~~ '~ iii-i William Mills & Associates, Inc. Date The prices quoted in this agreement are valid for 30 days CITY OF RICHFIELD, MINNESOTA Study Session Letter No.34 Agenda December 5, 1994 Issue Statement: Discussion of 1995 maintenance assessments for the ILN (Interstate/Lyndale/Nicollet Redevelopment) Project Area, proposed to be City Project No. 901. Background: In 1988, the Richfield City Council passed a resolution establishing a special assessment district for the Interstate/Lyndale/Nicollet (ILN) project area. The district included properties east of Lyndale and south of 77th Street, and the properties were assessed for current services required to maintain special landscape features and other public amenities on or adjacent to the right-of-way. The original ILN served its purpose well as a demonstration of how to attract commercial enterprises to Richfield while at the same time protecting residential areas from intrusion. The costs to maintain the landscaped buffer area were assessed to adjacent benefited properties. In 1993, construction began on 77th Street to expand this concept from I-35W to Cedar Avenue. In 1995, a significant portion of this project will be completed with extensive landscaping, an irrigation system, sidewalks, and sound wall. Once the contractors° responsibility ends, the City becomes responsible for the maintenance of these improvements. The additional maintenance costs will need to be spread over an enlarged assessment district to include properties benefiting from the new improvements. Staff recommends that the area on the attached map be assessed for maintenance of the new project. The attached proposed special assessment roll identifies the properties to be assessed and the assessment amounts. As public improvements are completed, the boundaries will widen as needed. All single family and two family residential property will be exempt from the special assessment levy; with commercial property owners being assessed on a per-square-foot basis under the proposed plan. The rationale for the exemption is that generally, there are negative impacts from businesses located close to residential properties, and the landscaping buffer insulates the residential property from these negative impacts generated by the businesses. The area to be assessed in 1995 would be bound by I-35W, 77th Street, I-494 and Portland Avenue. The special assessments will pay for maintenance to the landscaped areas along the screenwall and other common areas. The level of service provided in maintaining the original ILN was very similar to that provided in the Lyndale/Hub/Nicollet (LHN) area. Costs ran about 57,000 per year to maintain two blocks of heavily landscaped boulevard. The newly finished section involves about 21 blocks. While designing these improvements, great effort was made to eliminate the maintenance problems the City experienced at the LHN and the first phase ILN. Our estimates are that maintenance costs per block should be about half of what the costs to maintain the prototype ILN were. This would be about $35,000/year for the area from I-35W to Portland Avenue. Two-year guarantees on irrigation and landscape materials will reduce this cost substantially. Estimated costs • in 1995 and 1996 are about 518,000 per year. Most of the routine maintenance (.mowing, weeding, litter cleanup) would be contracted, leaving City crews to perform repairs on irrigation, lights and signs. A draft resolution setting a public hearing date on the expansion of the current ILN boundaries is attached. This resolution can be brought to the December 12, 1994 City Council meeting or to a Council meeting in early 1995. Recommended Motion: Although no action is required at this time, City staff is seeking direction on the assessment boundary and level of service for the maintenance of the newly constructed 77th Street and adjacent landscaping. Basis of Recommendation: 1. Resolution No. 7405, adopted in 1988, established a policy for assessing the costs. 2. On June 13, 1994 the City Council took action to support the continuance of specially assessing an ILN Project Area for the period of January 1, 1995 through December 31, 1995, and directed staff to provide information on or before December 31, 1994 to redefine the project area and to establish an estimated cost of current maintenance services to be provided to the redefined project area in 1995. Alternative Recommendation: None. Discussion/Decision Mode: This item is on the December 5, 1994 City Council Study Session agenda. Direction is requested at this time to begin the formal process on December 12, 1994 or at an early 1995 City Council meeting for the 1995 special assessment. Respectfully submitted, -Jame Prosser City Manager JDP:ds RESOLUTION N0. RESOLUTION DETERMINING TO EXPAND THE BOUNDARIES OF THE FORMER INTERSTATE/LYNDALE/NICOLLET (ILN) PROJECT AREA AND TO SPECIALLY ASSESS FOR THE COSTS OF CURRENT SERVICES PROVIDED WITHIN THE EXPANDED 77th STREET PROJECT AREA BE IT RESOLVED by the City Council of Richfield as follows: 1. That portion of the 77th Street project area (the "District") east of I-35W and west of Portland Avenue is hereby established as a special assessment district 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; The trimming and care of trees and shrubs and the removal of unsound trees from any street; The repair of sidewalks; The maintenance of landscaped areas and other public amenities on or adjacent to street rights-of-way; Trash and litter removal. 3. The area proposed to be specially current services consists of each and every multiple residential lot and parcel of land It is proposed that the special assessments property be made on the basis of area, with assessable commercial property within the D equal amount. assessed for such commercial and within the District. on the commercial each square foot of istrict assessed an 4. The City Clerk is hereby authorized and directed to 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. Such notice shall be published in the official newspaper at least once, at least two weeks prior to the date of hearing. Such hearing shall be held on Monday, _, 1995, commencing at 7:00 o'clock 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 aforementioned services for the period from January 1, 1995 through December 31, 1995. The estimated cost of providing all of the aforementioned current services during that period is 518,000. Passed by the City Council of the City o~ Richfield this day of 199 . Martin J. Kirsch, Mayor ATTEST: Thomas P. Ferber, City Clerk r N J N W ~ ~ w Na i I.f~ v a ~ U LL ~ ~ ~ Z U 'J (O f0 (O ~p N N N O O N ill ~ <O M O ~ O O N O N N C N r ~ M sT ~C ~ (O (V G ~ ~ W W ~ M f~ ~ ~ (V ~ O C ~ O f ~ ~ O (O ~ ~ ~ ~ ~ f0 N ~ ~ ~ CO O cU O ('~ ~ CM O I~ ~D c0 fV I~ [U ~ O N ' O N d c0 N 1n N N (O S N ti p p (' OJ W O E N N d N N a fA H M to M df EA fA (A M to fA fA fA (A fA EA df (A df EA EA (A d! df fA fA fA fA fA d! t9 d! (A EA fA EA U! 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Z } Z } ^ Z ^ Z O O (n J p N O O ~ O ~ O O m (n J m (n J m (n J m (n J m (n J ~ O ~ O 0 ~ 0 U ~ U r r ~ U ~ U r Q' r Q' O n p N n r r J pp ~~ J } J } J J a Z z J a J a J a J a J a ~ S ° Zz Z Z Q a ~ (Q Z Z a a n n ~ Q p O O 8 O 1L `yJ ,~ LL l O ^ ~ ~ y 7 N ` ` ^ 0 7 '~ ^ ~ ~ ~ ~ f` n S N ~ f n I n n n N N O O n n n S O m n n n n n n n n cp n N [p 00 N M 1n a In O IA !D 1 n c0 m O N M a - 1n t0 v In O n f0 n eD O M M O O O O S S O O O n O to O S O O (p O fp O fp O tp O fp O tp O tp O O O O O O O O O O O O O O O O N O M O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O M M M M V~ V et < et R V V p R p K p < R O M M M M T V' V < V V M M M M M M M M M M M M M M M M M M M M O < < < R V R V V V v v o v v v a a v e v a v v v v v a v v v v v v v v v a v e N ~ N ~ N ~ N ~ N M N W N O N O N ~ N ~ N M N M N W N O N O N ~ N O N W N ~ N O N ~ N W N ~ N W N O N M N M N W N W N ~ N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O V' O O O O R 'Q < < V K V R V < V ~ R V V ~ V < V < ~ M M M M M M M M M M M M M M M ~ M M M ~ M M M M M M M M M M (O n OD m O ~ N M V' 1n O n aD 01 O N M V In O n [O ~ N ('7 ~ (O n ~o m co co n r n n n n n n n n ao co ao ao co ao ao ao ao co rn rn rn rn m rn ~ ~ ~ ,I~I ,'~vI,I, ICI, r C M ri ' O ~ ~ 1 0 ~ a ~ N ~ ti ' M Y Y Y Y 1n n N N OD O O M M M < n n M < O f0 ('~ 00 N M ao n ~ `O' O O V O f0 M n O S N M ~ O N fN0 ~[) N M N N ~ /D CO n ~ ~ !O f 0 ~ (O M M O f 0 ( ) V ~ d! 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N0. 7T1 ~ CITY OF RICHFIELD, MINNESOTA Study Session Letter No.33 Agenda December 5, 1994 Issue Statement: Policy and strategy recommendations for airport related issues. Background° Recent developments regarding airport issues include the following: • New Ford Town and Rich Acres Acquisition The New Ford Town and Rich Acres Citizen Advisory Committee held an open house in November for residents of the neighborhoods. Phase II is getting under way. .Representatives from MAC, W.D. Schock and former residents were present to answer questions and address concerns for residents about to be acquired. A letter was sent out to open house attendees asking for new members to join the advisory committee. Many of the committee members have already been relocated. Approximately 66 homes will be acquired during Phase II. Only two offers remain to be made in Phase I. As of November 17, 99 properties have been vacated and 5 houses have been moved. Bill Schatzlein and City staff, along with staff from W.D. Schock and MAC, met with a representative from the office of Senator- elect Rod Grams. Andrea Andrews, who is responsible for transportation issues in the Senator's Minnesota office, was. briefed on the progress of the acquisition and the necessity to keep it adequately funded. Dual Track Planning Process and other airport related issues were also discussed. Staff also requested that Ms. Andrews meet with the City in the near future to discuss maintaining federal funding the 77th Street Reconstruction Project . • 4-22 Extension FAA and the Met Council have yet to release their Record of Decision (ROD) on the Final Environmental Impact Statement (FEIS) for the proposed extension. MAC staff have not heard definitively when to expect the document approval. This may indicate that the FAA is having some difficulty approving it. MAC was unable to reach a decision on the extension's inclusion in the 1995-2001 CIP. The project was sent back to the Planning and Environment Committee for discussion. Commissioners were hesitant to approve funding for the project before the environmental process had received federal approval. Northwest Airlines has taken the same position on the extension as Richfield. The airline supports a longer runway for operational flexibility but does not support the noise redistribution concept. NWA has asked MAC to begin work on a new EIS that includes the extension without noise redistribution as soon as possible. MAC has resisted a new EIS on the grounds that it may take up to a year to complete. NWA is concerned that any more delay could kill the project and severely hamper their hubbing activity when the south parallel runway is reconstructed. • MSP Long-Term Comprehensive Plan The City submitted written comments to MAC regarding the Alternative Environmental Document (AED) for MSP. To review some of Richfield's main concerns: • The AED did not assess operational safety considerations of the north-south runway. • MAC did not explain why the converging north-south runway was preferred to a north parallel, despite FAA's strong recommendation that capacity enhancing runways be built parallel to existing runways. • The AED did not adequately address redevelopment measures to achieve compatible land uses. • The extension of Runway 4-22 was assumed in all alternatives. The AED should have considered alternatives without the extension. Staff met with .MAC, Metropolitan Council and communities surrounding MSP to discuss land use compatibility issues. The surrounding communities are interested in pursuing tools that will enable airport impacted communities to redevelop currently incompatible land uses, as well as market obsolete housing and commercial properties. • Part 150 Sound Insulation Program The Metropolitan Airports Commission approved the Part 150 Sound Insulation Program as part of the 1995-2001 Capital Improvement Program. MAC is committed to maintaining the program at a minimum of 600 homes per year, no matter what level of federal funding is provided, using AIP/PFC funding. City staff recommended to MAC that homes in south Richfield not be included in the Part 150 prioritization until a decision has been made on the extension of Runway 4-22. The 4-22 EIS clearly states that mitigation money, separate from the Part 150 program, will be directed into south Richfield and Bloomington. Part 150 funds should, therefore, be completely dedicated to north Richfield consistent with the current allocation formula. Staff also recommended that the allocation formula not be adjusted to reduce Richfield's share because of the proposed mitigation for 4-22. • Metropolitan Aircraft Sound Abatement Council (MASAC) Richfield MASAC representative George Karnas is moving out of the city soon. New appointees to MASAC will be considered in January 1995. Recommended Motion: Discuss current airport policy issues. Basis for Recommendation: It is important for the Council to provide direction to staff on airport policy. Alternative Motion: Defer discussion to another date. Discussion/Decision Mode: This matter will be discussed at the Study Session of December 5, 1994. Respec ly submitted, Jams D. Prosser Cit Manager JDP:cak CITY OF RICHFIELD, MINNESOTA Study Session Letter No. 32 Agenda December 5, 1994 Issue Statement: Review of the City of Richfield 1995 legislative initiatives. Background: The attached City of Richfield legislative initiatives will be presented to the Council at the Study Session of .December 5. The legislative initiatives which have been prepared are a condensed version of some problems facing the .City with some proposed solutions. Discussion of the legislative initiatives and policies with the State Legislators will occur in January 1995. Recommended Motion: The legislative initiatives will be presented for discussion purposes with Council Members. No formal action is required at this meeting. Basis for Recommendation: 1. Prior discussions with ,Council on legislative issues. 2. Recommendations by League of Minnesota Cities and Association of Metropolitan Municipalities. Alternative Recommendation: 1. The Council may choose to revise, delete or add policies at their pleasure. Discussion/Decision Mode: This matter will be presented to the Council at the Study Session of December 5, 1994. Respectfully submitted, Jam D. Prosser City Manager JDP:cak RICHFIELD'S 1994 LEGISLATIVE INITIATIVES First ring suburbs such as Richfield continue to find themselves in a unique position. Many first ring suburbs have now reached a critical stage in their development. The repositioning and revitalization of their housing market requires extensive effort. At the same time, we are faced with the need to develop and strengthen a viable commercial tax base. Both are necessary to maintain the overall viability and livability of these communities. First ring suburbs cannot be placed in the same category as other newer, growing suburbs. Cities such as Richfield can also not expect to compete for legislative attention in the same manner as core cities. Without special attention, first ring suburbs such as Richfield can become our "throw away" suburbs. However, with proper attention, these communities can continue to support their center. cities and maintain an important role in the stability of regional development. Richfield is responding to the challenge of maintaining its long standing position in the metropolitan area. Some of the primary efforts that support Richfield's successful response to this challenge include: • commercial redevelopment; • installation of planned public improvements now, at current costs; • selective clearance and replacement of properties with obsolete conditions with more appropriate land uses; • rehabilitation of existing single family housing; • rehabilitation of existing multifamily housing; ~ renovation of parks, playgrounds and other community facilities; • implementation of neighborhood crime watch/fix up campaigns; • social service support for growing segments of the community; • proactive response to airport operations and planning; and • participation in transportation planning issues which will affect the entire metro area. The following initiatives summarize Richfield's most acute problems and recommend legislative solutions. The objective is to remain progressive and proactive to the challenges facing the community. Resources must be of a sufficient quantity to have a positive impact on the needed redevelopment, maintenance and essential services. A response to Richfield's vitality must recognize the need for resources now to deal with the impact of issues facing Richfield today. CHALLENGE 1 - RESOURCES OF VITALITY New and modified revenue sources are needed to ensure that resources are of a sufficient quantity to have a positive impact on housing, redevelopment, maintenance and essential services in Richfield. Of particular concern are the impacts due to airport operations and long range planning. RESPONSE: 1.A. LOCAL GOVERNMENT AID (LGA) The Local Government Trust Fund will be eliminated on July 1, 1996. After that date, LGA will be paid from the State General Fund. The City of Richfield urges that the following principles be followed in determining future LGA: 1. Funding for city LGA will grow at the same rate as revenues to the State of Minnesota. 2. City LGA revenue growth will be distributed to compensate for differences in need and tax base. 3. The LGA funding formula will correct perceived inequities in the previous distribution of aid over time as increased funding permits. The formula will not cut current aid amounts for any city. 4. .The new formula will automatically distribute the increased revenue available for city aid and will not encourage or require annual legislative tinkering. This will ensure stability in future city LGA payments. 1.B. HOMESTEAD AND AGRICULTURAL CREDIT AID (HACA) The City opposes payment of additional HACA for property class rate reductions from the Local Government Trust Fund beyond those rate reductions already in law through taxes payable in 1994. 1.C. SUSTAIN LEVY LIMITS REPEAL The City supports the Legislature's repeal of City levy limits. Removal of levy limits enhance local accountability, allow cities to plan for-and respond to changing financial conditions and the increasing costs of state and federal mandates. Levy limits have been inconsistent with the principles of local self-government and accountability. 1.D. .CITY FUND BALANCES The City supports the position that the Legislature should not attempt to control or restrict city fund balances. These funds are necessary to maintain the fiscal viability of city governments to purchase capital goods and infrastructure to maintain high level bond ratings, and to pay the operational costs of administration of local government prior to the time that the tax settlements are received by the City. Cities must have adequate fund balances at the beginning of each fiscal year to finance expenditures for the first full six months of the year. 1.E. PENALTIES AND INTEREST ON DELINQUENT PROPERTY TAXES The City urges the Legislature to pass legislation that would provide that cities receive their proportionate share of revenues from penalties and interest collected on delinquent-property taxes. These revenues should not be deducted from State aid payments. Under current law, only counties and school districts receive penalty and interest payments on delinquent property taxes. l.F. SUPPORT FISCAL DISPARITIES The City urges the Legislature to continue to support the Fiscal Disparities Program. This program offsets some of the financial differential between developed and developing communities and acknowledges the greater needs of developed areas. 1.G. EXPAND T.I.F. FUNDING USES The City urges the Legislature to modify the definition of administrative services within Tax Increment Financing (T.I.F.) Districts to include health and safety support services identified by the redevelopment district plan and budget. 1.H. SPECIAL ASSESSMENT ADMINISTRATION The City urges the Legislature to repeal authority for counties to assess a separate charge to administer special assessments. 1.I. FISCAL YEAR The City strongly opposes any state mandated changes to the fiscal year for municipalities. The City's current fiscal year runs concurrent with the calendar. CHALLENGE 2 - RESOURCES FOR REDEVELOPMENT Richfield has made significant progress in reversing the deterioration and decline in commercial-retail areas of the City. Market conditions, the significant lead time required for development, and the considerable expense to address the remaining blighting conditions and planned public improvements requires additional resources. Richfield demonstrates a prudent and proper use of Tax Increment Financing. RESPONSE: 2.A. T.I.F. - INCENTIVE FOR FISCAL DISPARITIES GAINERS Develop and support legislation that would provide special financing incentives unique to communities that are significant fiscal disparities gainers. This would help balance the concerns of fiscal disparities losers who believe that they are supporting commercial/industrial tax base poor communities to a greater extent than necessary. 2.B. T.I.F. - MODIFY USE DEFINITION Support modifying the definition of administrative services within Tax Increment Districts to include health and safety support services identified by the redevelopment district plan and budget. 2.C. T.I.F. - RESTRICTIONS ON THE USE OF T.I.F. Resist further restrictions on the use of Tax Increment Financing given that it remains one of the only ways for Richfield to finance the expensive redevelopment of deteriorated commercial areas. The City of Richfield supports legislation to permit the use of TIF for redevelopment, particularly housing development in redevelopment districts, without the loss of state aid. 2.D. T.I.F. - EVALUATE FUTURE WINDFALL OF EXPIRED T.I.F. DISTRICTS Request House Research to evaluate the windfall in property tax receipts that Hennepin County will receive after the. year 2000. Those resources could provide a long term reduction in the amount of resources needed for state funded and County administered human service and other important programs and reduce the property tax burden for Hennepin County property owners. CHALLENGE 3 - RESOURCES FOR RENTAL HOUSING Richfield has approximately 4,600 rental units (63 percent one bedroom, 29 percent two bedroom), which were built primarily from 1960 to 1970. The apartments require investment and repair to be livable and desirable. Vacancy rates are variable. The rental housing investment climate does not make owner investment attractive. MHFA rental housing loan programs require rent control and income qualifying which are disincentives to owner participation. An increasingly lower income and more diverse population causes concentration and places greater demands on social service, health and safety programs. Richfield has developed a coordinated apartment owner/manager/tenant program of information sharing, image and marketing, communication and community service support. RESPONSE: 3.A. °'THIS OLD HOUSE" - RENTAL PROPERTY Support a legislative delay in property tax assessment increases for improvements made to rental housing. A class rate change for a specified period of time could be provided if a rental property owner agrees to certain improvements and management guidelines. The agreement would specify type and schedule for completion of improvements. The class rate would equal the subsidized class rate. 3.B. MHFA RENTAL LOAN PROGRAMS Support modification of MHFA rental loan programs to provide opportunities to achieve broader economic integration of rental occupancy. 3.C. REVENUE SOURCES FOR SELECTIVE REHABILITATION Support new revenue sources which can be used for the selective rehabilitation or the acquisition and clearance of deteriorating buildings and replacement with more appropriate land uses. A metropolitan area wide revenue source should be sought to be targeted to housing problems in the suburban core. 3.D. SERVICES COORDINATION WITH RENTERS Provide a 570,000 grant with additional supporting funds to be provided locally to assist in the development of a community based "family self-sufficiency" program. Patterned after a creative HUD Section 8 program, this grant supports the development of a network of coordinated services to stabilize and empower lower income family renters which may or more typically may not benefit from established rent assistance programs and have fragmented access to the human service network. CHALLENGE 4 - RESOURCES FOR SINGLE FAMILY HOUSING Richfield has approximately .11,200 single family homes (5 percent built prior to 1939, 62 percent build prior to 1960). Many single family homes require renovation and repair. Many more can benefit from additional home improvements and remodeling which provides features desirable to today's home owners and buyers. Resources are insufficient to counter flight to developing suburbs and potential abandonment. RESPONSE: 4.A. BLIGHTED PROPERTIES PROGRAM Support the continuation of the MHFA Blighted Properties and Richfield's New Home/Richfield Rediscovered Programs which provide funds for acquisition and demolition of blighted neighborhood conditions. Approximately 165 Richfield homes-are program candidates. Approximately $500,000 annually removes eight to nine homes and provides new housing opportunities. Revenue from land sales reduces expenditure, providing a net. project cost closer to $300,000. 4.B. MHFA HOUSING TRUST FUND Support changes to MHFA's Housing Trust Fund which place greater emphasis on large family ownership and rental opportunities in the suburban core.. Persons with incomes up to 30 percent of median ($15,300) presently benefit from affordable housing opportunities in other parts of the state. A change of income limits, an increase to 50 percent of median (525,500), would assist the HRA in the acquisition and clearance of substandard housing and the development of family ownership housing in cooperation with a nonprofit housing developer such as Habitat for Humanity. 4.C. "THIS OLD HOUSE" MODIFICATIONS Modify the "This Old House" legislation. Richfield has single family homes built between 1940 and 1960. Richfield is promoting the remodeling, investment and value added improvements to these 33 to 53 year old homes. The present legislation caps the property tax benefit to 50 percent of the value added improvements up to 525,000. This deferral lasts for ten years and then is phased out over five years. It is proposed that the full value be deferred for five years and then phased out with a maximum deferral of $50,000. 4.D. HOME REMODELING INSURANCE FUND Develop a pilot insurance pool with MHFA reserves to assist the private financing activity of Richfield homeowners. A set aside of funds would reduce the risk of private lenders borrowing funds to homeowners at 100 percent of loan to value regardless of income. Homeowners that wish to repair and invest are often limited to accessing private capital because of lack of home investment expendable income and low equity levels. Approximately 20 homes with $100,000 values ($2,000,000) would need to secure 10 to 20 percent (or $200,000 to $400,000) in equity to facilitate private activity loans. CHALLENGE 5 - NEW RESOURCES FOR VITALITY Support a package of new and modified revenue that resources are of a sufficient quantity to impact on housing, redevelopment, maintenance services in Richfield. Of particular concern to airport operations and long range planning. RESPONSE: 5.A. AIRPORT sources to ensure have a positive and essential are the impacts due Support immediate mitigation of the growing pressures of airport operations and expansion plans by securing legislative support to: 1. HOUSING REPLACEMENT Based on actual 1994 activities, finance the development in Richfield of 8 to 9 homes annually for five years as a housing replacement resource for residents impacted by the Metropolitan Airports Commission's acquisition program in New Ford Town and Rich Acres neighborhoods of Richfield. Blighted property site assembly cost (acquisition, relocation, demolition) followed by coordinated development will approximate 5500,000 annually through 1999. 2. NOISE ABATEMENT Finance noise abatement for housing and schools that are located in the 1996 Ldn 65 noise contour and eligible for the Metropolitan Airports Commission's MSP Part 150 Airport Noise and Land Use Compatibility Program. Funding for the program is provided by the FAA (80 percent) and the MAC (20 percent). Finance noise abatement for sound insulation in schools in communities near the airport that experience disruptive aircraft noise and are located outside the 1996 65 Ldn noise contour. Special state legislation is needed fund these projects because building structures located outside the 65 Ldn noise contour are not eligible for federal funding according to FAA Part 150 Program guidelines. 3. OFF-SITE AIRPORT NOISE MITIGATION During the 1992 legislative session, a bill was passed requiring the MAC to dedicate nearly $30 million over the next four years from Passenger Facility Charges (PFC's) for noise mitigation projects around the airport (State Statutes Sec. 473.661, Subd. 4). The legislative intent of the law is to require the MAC to spend certain increasing percentage minimums of its annual capital improvements budget for noise mitigation in communities surrounding the airport in addition to Part 150 funds. The additional funds available through this bill will allow more homes and schools to be serviced in a shorter period of time. The Legislature should monitor the MAC's implementation of the law to ensure adherence to its requirements. 4. MAC COMMISSIONER TO SOLELY REPRESENT RICHFIELD Richfield is significantly impacted by MAC activities. Minneapolis and St. Paul have MAC representatives selected by each city. All other appointments are made by the Governor. It would be appropriate to endorse legislation that would permit appointment of a Richfield MAC representative by the City of Richfield. 5. REDEVELOPMENT INCENTIVE PACKAGE The City should urge the Legislature to develop an incentive package for communities surrounding MSP Int'1 Airport to support residential redevelopment of airport impacted properties. 5.B. REVENUES FOR REDEVELOPMENT Support a metropolitan area-wide revenue source to finance the redevelopment of deteriorating commercial and housing areas. 5.C. COMMUNITY DEVELOPMENT FEE Support legislation which would enable the City to impose an annual fee for community development activities. The fee would be used for housing, neighborhood preservation and redevelopment initiatives of the HRA. 5.D. RECREATION APPROPRIATION BONDING BILL The City strongly supports the Department of Natural Resources proposed capital budget which includes a request that $7 million be appropriated for the next fiscal biennium for outdoor recreation grants to local governments. The Outdoor Recreation Grant Program, which was recently transferred from the Department of Trade and Economic Development, would administer this matching grant program in addition to the Federal Land and Water Conservation Grants. 5.E. SPECIAL TAX INCREMENT LEGISLATION FOR RICHFIELD Richfield has unique housing needs to meet a diverse population. It is proposed that tax increment districts be authorized which allow "housing accounts." When a district includes a housing account: • The district would be exempt from LGA-HACA penalties. • The proceeds of the account can be used without regard to income,. throughout the City to meet local housing needs. • A qualifying account is established when 15% of revenue derived from increment in the district is committed to the housing account. 5.F. METROPOLITAN AREA DEVELOPMENT The development of the seven county metropolitan area has been the subject of legislative debate. Several legislative proposals have been introduced relating to metropolitan government, land use planning, fiscal disparities, and low and moderate income housing. The debate regarding the metropolitan area and the use of metropolitan resources has not been limited to the State capitol. Individual cities, municipal organizations and the Metropolitan .Council have presented diverse positions. The City of Richfield has participated in the discussions and supports legislative efforts to provide cities with the resources and ability to provide safe, affordable housing to all residents regardless of income. The legislation should also encourage the linkage between place of employment and residence. CHALLENGE 6 - RESOURCES FOR TRANSPORTATION Richfield is significantly impacted by proposed improvements to I-494, I-35W, 62 Crosstown and TH77. Richfield has been directly involved with monitoring and influencing the planning for these roadway improvements. Careful attention must be given to balancing regional and-local interest. Richfield understands that lack of additional capacity for these roadways would likely generate additional pollution, force more traffic onto neighborhood streets and decrease traffic safety within the community. However, the loss of homes and encroachment in residential areas must be carefully considered. RESPONSE: 6.A. HIGHWAY FUNDING The City urges the Legislature to identify and support a clear funding mechanism for improvements to I-35W, I-494 and TH77. 6.B. LIGHT RAIL TRANSIT (LRT) The City urges the Legislature to oppose funding for LRT in the I-35W corridor. It is the City's position that the diamond lanes alternative is the most responsive solution to the corridor's transportation needs. 6.C. 6.D. 6.E. 6.F. HIGH SPEED BUS Support development and funding of a comprehensive high speed bus transit plan alternative as the most responsive solution to the I-35W corridor's transportation needs. This concept is consistent with the diamond lane alternative. The concepts also provide more benefits than LRT with less expense and can be implemented sooner. HIGHWAY IMPROVEMENT PRIORITIES The City urges the Legislature to support funding for the reconstruction of the I-35W/I-494 interchange as part of the first stage of the I-35W improvements. MUNICIPAL STATE AID (MSA) The City supports increasing the Municipal State Aid system limit to 3,000 miles. The increase is necessary to ensure that adequate funding is available to maintain streets. STREET UTILITY FUND The City supports the legislation which would permit cities to establish .the Street Utility Fund as an option funding source for street maintenance. The League of Minnesota Cities has urged the Legislature to permit cities to create a transportation utility. Such authorization would address: • Reduced revenues available for local street and road improvements. • The benefits to all taxpayers of a properly maintained local transportation system. • The severe limitations of existing special assessment authority. 6.G. DEMONSTRATION PROJECT FUNDING The City strongly supports Demonstration Project Funding for 77th Street. Richfield will be seeking funding through Congressman Sabo and other members of the Minnesota congressional delegation. Support from Legislators would be very helpful. CHALLENGE 7 - COMMUNITY ENVIRONMENTAL PROTECTION Richfield recognizes the need to protect our fragile environment. There are a number of issues of special concern regarding the environment including: RESPONSE: 7.A. WATER MANAGEMENT ORGANIZATION Minnesota Statute Chapter 509 requires Water Management Organizations (WMOs) to prepare Water Management Plans. Cities are then required to prepare Local Water Management Plans. Richfield is in support of legislation to allow cities to be the permitting authority rather than WMOs once the cities have Local Water Management Plans consistent with WMO plans. 7.B. HOUSEHOLD HAZARDOUS WASTE Richfield currently permits a system of open competition for residential waste haulers. Our perception is that people of Richfield believe that the current system works well but that there is a need to increase the convenience of household hazardous waste disposal. We also agree that legislation should continue to fund educational and operational pilot program efforts on the subject of solid and hazardous waste disposal including alternatives for the disposal of household waste such as those promoted by the Household Hazardous Waste Reduction Project. 7.C. MANDATORY NOISE BUDGET ORDINANCE AT MSP The .Metropolitan Airports Commission (MAC) is responsible for minimizing environmental impacts from air transportation and navigation activities on communities near the airport. MAC announced last fall that the aircraft noise levels at MSP were in violation of a voluntary Noise Abatement Ordinance that was established in 1987. The City of Richfield requests MAC to take a more aggressive position and adopt a mandatory Noise Budget Ordinance that would provide more effective noise relief to communities near the airport. The MAC has been reluctant to enact such an ordinance at MSP. The Legislature should require the MAC to adopt the mandatory ordinance at MSP to ensure meaningful air noise reduction in communities near the airport. 7.D. LEAD ABATEMENT Minnesota has adopted lead abatement legislation that is designed to protect children from lead poisoning and to preserve housing by abatement of the lead hazard. Without proper care, legislation proposed in 1995 could prevent remodeling contractors from providing reasonable responses to lead and securing insurance against lead discovery and control. In effect, all remodeling would stop. It is proposed that the City support lead abatement which: • Provide for lead safe rather than lead free housing. • Allow for the development of rules and regulations that do not significantly increase the cost of housing preservation and rehabilitation. • Enable contractors to obtain insurance for lead abatement work. • Appropriate Funds to implement mandates and preventative programs contained in the act. CHALLENGE 8 - COMMUNITY GOVERNANCE The need to develop accountable governance systems which permit free and open access to the political process as well as developing affordable systems are priorities for our community. Of special interest to Richfield are the following issues: RESPONSE: $.A. ELECTIONS (ABSENTEE VOTING) Absentee voting is overly complicated and results in rejection of significant numbers of ballots, while adding to local administrative reponsibilities. The City supports absentee voting procedures that are "streamlined" and made more "user friendly." Adopting reforms proposed in the 1993-94 legislative session will increase the number of ballots returned as well as the number that are accepted. In addition, reforms will decrease current local administrative burdens and costs. 8.B. ELECTIONS (GENERAL) Lack of voter interest and anger over political party designation requirements (to receive a ballot) have resulted in poor turn-out for the presidential primary as well as increased local election costs. The presidential primary is a political activity in which voters indicate preferences for presidential candidates of major political parties. Cities are not the appropriate level of government to take responsibility for administering the balloting process. In 1996, cities prefer to see the state conduct the primary using a staewide mailed ballot for which any local administrative costs will be fully compensated. In addition, the state should redesign the precinct voter rosters indicating which political party ballot voters select to safeguard voter privacy and ensure accurate recording of voter ballot selection. Finally, the state should fully fund the presidential primary and, if necessary, charge major political parties whose candidates appear on the ballot for an appropriate share of expenses incurred. 8.C. ELECTIONS (JUDGES) Requirements for local election judge political party balance (at polling locations) creates barriers to the effective recruitment of interested persons to serve at polling places. Restrictions on parents-children-spouses serving at the same location do likewise. The legislature should institute a nonpartisan method for recruiting those interested in serving as election judges. CHALLENGE 9 - COMMUNITY AFFORDABILITY There are a number of issues of particular interest to the City because they affect the affordability of City services. Those include: RESPONSE: 9.A. MANDATES 9.B. The City opposes any additional mandates. All branches of federal and state government should adopt a policy which requires a direct link between funding responsibility for programs with the level of government that creates the program. The City also urges the Legislature and the Congress to review, repeal or revise current mandates. PAY EQUITY The City supports efforts to eliminate any sex based differences in compensation to public employees but asks the Legislature to revise the Pay Equity Statute to-limit the law's applicability to only full time employees. .The rules used to compute pay equity for seasonal and part time employees generally do not support the basic pay equity policy. 9.C. EMPLOYEE BENEFITS The City supports legislation promoting the efficient and economical provision of employee benefits including life, health and dental care. The City specifically opposes legislation which would authorize employees or groups~of employees to unilaterally select particular care providers. The City further asks that the Legislature not mandate or grant additional benefits to public employees. 9.D. LOCAL POLICE AND PAID FIRE RELIEF ASSOCIATIONS The City supports the merger of local Police and Fire Relief Associations into PERA Police and Fire Funds under the uniform policy enacted in the 1987 Legislature. Any amendments to the policy should lower City consolidation costs while fully protecting the solvency of the PERA Police and Fire Fund.- The City supports: • Changes in the actuarial assumptions relating to salaries and investment return to more truly reflect experience. The City opposes: • The payment of any type of bonus to active or retired members such as the "13th Check." • The establishment of any multiple mechanism for inflation or post-retirement adjustments. 9.E. INTEREST ARBITRATION The City supports legislation which modifies the existing interest arbitration process to require arbitrators to give primary consideration to internal equity comparisons and the impact of an arbitration on the personnel compensation systems of the city involved. 9.F. WORKERS' COMPENSATION The City supports modifications to the workers' compensation statutes which would restrict presumptions of occupational disease to apply only after an employee can establish an absence of personal risk factors that could have caused the disease or illness. The law now allows for the legal presumption that Police and Fire personnel contract certain diseases or illnesses due to their employment. Employers must then rebut the presumption by introduction of evidence. The burden is difficult and increases the chance that employees receive compensation for non-work related illness and disease. Currently, the law provides the following presumptions for the following personnel: Police and Fire: Myocarditis, Coronary Sclerosis, Pneumonia or its sequel, and .infections or communicable disease (exposures outside of a hospital) and for Fire only - cancer. All of the listed diseases or illnesses are common to the entire population and an equal or greater correlation may exist between the specific illness and the individual's personal risk factor such as smoking, diet, exercise, heredity and life styles than the correlation between the job and the illness. 9.G. VETERAN'S PREFERENCE The City supports amending the Veteran's Preference Act to provide that a veteran must select one and only one hearing procedure under a grievance procedure within a collective bargaining agreement. The City supports clarifying the Civil Service Statute, specifically removing medical disability suspension, demotion and termination actions from Civil Service Commission authority. 9.H. LIQUOR ISSUES The City strongly opposes the establishment of one class of beer and the offsale of wine in other than liquor stores. The .establishment of one class of beer in Minnesota would cause substantial problems in controlling the sale of beer in filling stations, grocery stores, drug stores and elsewhere where 3.2 beer is now sold. 9.I. TEMPORARY EMPLOYEES The City recommends that the Legislature reinstate the previous definition of employees covered by PELRA to employees who are employed for more than 100 working days in a calendar year. This is very important to the operation of City services. The current legislative language is confusing. Reestablishing the previous language which would provide 120 working days instead of the 100 calendar days would greatly improve Richfield's ability to provide services to the community and would not encourage the inappropriate use of seasonal workers. Many of the workers used for these programs are students. The 100 calendar day limitation does not accurately reflect the time that many of these workers have available to serve the community. 9.J. ADMINISTRATIVE FEE FOR DNR TRANSACTIONS The City urges an increase in the administrative fee (deputy registrar fee) for processing Department of Natural Resources (DNR) boat and snowmobile transactions be enacted. The current fee of 50G per transaction has not been changed since 1971 and does not cover the administrative cost of providing the service. 9.K. 9.L. 9.M. RECOVERY OF D.U.I.. ARREST COSTS Richfield currently makes approximately 145 D.U.I. arrests annually. These arrests require police officer time during testing, booking and the court process. Additionally, cities are responsible for out of pocket expenses including prosecuting and correctional supervision cost.. The total cost for the average D.W.I. conviction to the City of Richfield is $802, while .the average fine for a D.W.I. defendant was $126. The City recovers only a portion of D.U.I. fines when levied and collected. The portion received by the City covers approximately 15% of the cost of arrests. Therefore, the. more aggressive the City is in removing D.U.I. drivers the greater the vinancial burden on the City. The City should urge the Legislature to provide greater recovery of D.U.I. cost that would help resolve this problem. WORTHLESS CHECKS The City urges the Legislature to support worthless check legislation. In the past, legislation has been introduced but never passed which would provide that any person who pays for a driver`s license with a bad check shall have their driver's license revoked. If a person pays for license plates with a bad check, their motor vehicle, registration certificate would be revoked. And finally, if a person would pay for a certificate of title with a bad check, the certificate of title would be revoked. When the liability on a bad check is discharged or payment made, the Department of Public Safety would reinstate the person's driver°s license, motor vehicle registration certificate or motor vehicle certificate of title upon payment of a $20 fee. The City of Richfield each year is burdened with making good on bad checks that are paid for motor vehicle registration license fees. POLICE MINORITY RECRUITMENT The City urges the Legislature to provide funding for cities like Richfield to establish a cooperative "cadet" program. The program would recruit minorities out of high school, provide them with law enforcement training and provide a subsistence type of income for them while they were in the training program. The goal would be to hire the minority candidates for police positions in the participating communities upon the completion of the training. 9.N. CRIME PREVENTION Violence is increasing in urban areas and throughout the United States. While the police continue to respond and provide a number of programs, Richfield is stretched to the limit. The solution to this and other crime programs is prevention education. Furthermore, crime is mobile: many crimes are not committed by persons from Richfield. Because of this, it is not a Richfield problem but the state's. Therefore, the Legislature should provide for innovative programs that will give Richfield and other communities the resources necessary to educate our citizens on good crime prevention and safety awareness programs.- 9.0. STATE BUILDING PERMIT SURCHARGE Prior to 1991, cities collected a one-half percent surcharge on all building permits which were sent into the state. However, a large portion of that was returned to the local governments. Since 1991, the Governor, as part of his budget balancing bill, kept all surcharge monies collected by local governments to help fund the Building Codes Division of the State Department of Administration. This resulted in Richfield losing between $5,000 and $10,000 annually. Richfield supports the LMC initiative to restore the excess fees generated by the surcharge which exceed the costs of the State Building Code Division to local governments. 9.P. FIREARM TRANSFER PERMIT FEES The City urges the Legislature to enact a law that would enable cities to collect a fee for processing firearm transfer permits. Currently, the City processes approximately 900 permits per year at a cost of S5 per permit and is prohibited from collecting a fee. 9.Q. CABLE TELEVISION REGULATION The City urges the Legislature to adopt an amendment to Chapter 238, the cable communications law, governing cable communications in Minnesota to extend the authority granted to municipalities to all telecommunication providers who utilize rights of way of cities to the extent not inconsistent with the existing state regulatory authority granted to the Public Utility Commission. The City is concerned that unless the Legislature takes steps to update the existing Cable Act to ensure that all telecommunication providers seeking to utilize rights of way of cities for the delivery of voice, video or data communications when not inconsistent with the requirements set forth under the Public Utility Commission's rules and regulations must comply with certain standards and requirements of a uniform nature pursuant to franchise requirements and based on the model established in Minnesota in the Minnesota Cable Act. CITY OF RICHFIELD, MINNESOTA Study Session Letter No. 31 Agenda December 5, 1994 Issue Statement: Review of City employee role in solicitation for charitable activities. Background: Recently, the City received a letter from a Richfield resident critical of City staff role in solicitation for charitable activities. In addition, in 1994, the State Legislature adopted the Ethics in Government Reform Act ("Gift Law") regulating activities of local officials. City staff participates in a wide variety of charitable efforts and plays many different roles as part of those efforts. Some examples include: • Richfield Foundation The Mayor and City Manager are permanent members by position on the Richfield Foundation. Currently, the City Manager is the Fund Raising Committee Chair. The City Manager's Administrative Assistant serves as secretary and maintains the official files. Funds are solicited -from businesses and vendors from within and outside of the community. Funds are used for purposes designated by the Richfield Foundation Board. • Safety Camp City staff are involved with organization and operation of the Safety Camp. The expenses of the camp are exclusively paid for by service clubs and businesses within and outside of the community. • Friends of Wood Lake City employees essentially staff the Friends of Wood Lake and do assist in the coordination of fund raising efforts. Funds for FOWL are used to supplement capital projects and expenses related to Wood Lake Nature Center. • Community Center Activities The Community Center raises funds for a wide variety of purposes related to Community Center operations including fund raising events. • Fourth of July Committee City staff assist in fund raising efforts for July 4 activities including the parade, fireworks, and entertainment. Assistant City Attorney Corrine Heine has reviewed these activities and has determined that the new state "Gift Law" does not prohibit employees from soliciting gifts on behalf of the City and non-profit organizations. While the "Gift Law" prohibits local officials from accepting gifts from interested parties, the prohibited gifts are those being made to the local official not to the City or non-profit organizations. The Council may however develop. more restrictive City policies regarding these activities. Recommended Motion: Council should review the appropriateness of City staff continuing to participate in solicitation of funds and gifts for City and non-profit efforts. Basis of Recommendation: It is appropriate for the Council to provide policy direction regarding these activities. Alternative Recommendation: The Council has a wide variety of options for policy direction in these areas including: • Direct the City Manager to .prohibit staff involvement in solicitation of gifts for these types of programs or activities. • Continue to provide support to non-profit organizations but do not participate in any solicitation of gifts or funds. • Prohibit involvement of staff in these activities in their capacity as City employees. (It is important to note that most of the services provided by employees are on non-City hours.) • Continue the current practice. • Request additional information prior to a decision. Discussion/Decision Mode: This matter will be presented at the Study Session on December 5, 1994. Respectfu ly submitted, Jam s Prosser City Manager JDP:ds ~~~~~~~~:~ ~~r 2 ~ i~9~t September 28, 1994 Mr. Jim Prosser, Manager City of Richfield 6700 Portland Avenue South Richfield, MN 55423 Dear Jim: CC: Mayor Kirsch 1 was surprised and pleased to hear of the success of the FOWL Ball Golf Classic, and was impressed with the amount it was able to raise with only 37 participants. That is until at least one of the approaches to securing Sponsors came to light. Although I am not a member of FOWL, the benefits to the Nature Center have been substantial and they are to be commended. However, for an employee or employees of the City of Richfield to button-hole vendors or contractors in the manner they did seems to me to be less than the proper approach. I am referring specifically to the letter that went to contractors over the signature of Gretchen Blank. She offers a company the "opportunity" to support Wood Lake by sponsoring a hole. Then she concludes the letter by stating;"1'll be calling you shortly to CONFIRM(caps are mine} your participation". Not to see IF IT WILL BE POSSIBLE FOR YOU to become involved or COULD YOU CONSIDER becoming involved. If you were the company receiving the letter, wha# would you consider your options to be- if you wanted to continue doing business with the City of Richfield? Much has been said about ethics in Business and Government over the last number of years. 1 would propose that the quoted statement above smacks of less than acceptable action or compliance with the standards you seek in Richfield. Thanks for your consideration and understanding. Bob Li dgr 6339-12th Ave. So. Richfield, MN 55423 Attorneys at Law :BERT A. ALSOP JNALD H. BATTY .STEPHEN J. BUBUL JOHN B. DEAN MARY G. DOBBDVS STEFANIE N. GALEY CORRINE A. HEINE JAMES S. HOLMES DAVID J. KENNEDY JOHN R. CARSON WELLINGTON H. LAW CHARLES L. LEFEVERE JOHN M. LEFEVRE, JR. ROBERT J. LINDALL October 28, 1994 HOLMES & GRAVEN CHARTERED 470 Pillsbury Center, Minneapolis, Minnesota 55402 (612) 337-9300 Facsimile (612) 337-9310 WRITER'S DII2ECT DIAL 337-9217 ~azl ~~'C±~@~r City of Richfield 6700 Portland Avenue South Richfield, MN 55423 Mayor Council patty. CM ~ii~~ /~ ROBERT C. LONG LAURA K. MOLLET BARBARA L.PORTWOOD JAME5 M. STROMMEN JAMES J. THOMSON, JR. LARRY M. WERTHEIM BONNIE L. WII.KINS GARY P. WINTER DAVID L. GRAVEN (1929-1991) OF COUNSEL ROBERT C. CARLSON .IrOBERT L. DAVIDSON (~-........5/ .JAY SALMEN Comm. Svc. Liq. Dir. /~ Pub. Safety RE: City Employee Involvement in Community-Based Fundraising Efforts Dear Jim: This is in response to your memo of October 19, 1994. You indicated a concern as to whether it is appropriate for city employees to solicit donations and gifts from members of the public, on behalf of city and private non-profit organizations such as Friends of Wood Lake, Richfield Foundation, Richfield Vision 2004, the Fourth of July Committee, and Loaves and Fishes. From Melanie Ault, I understand that this question arose in connection with the recent "Gift Law" that was adopted by the 1994 legislature, Chapter 377. In my opinion, Chapter 377 does not prohibit city employees from soliciting gifts on behalf of the city and non-profit organizations . The law prohibits local officials from accepting gifts from interested persons . However, the prohibited gifts are those that are made to the local official, not gifts made to the city or non-profit orge!niza- tions . This opinion is subject to one caveat : the law would not permit an employee to solicit a gift nominally made to the city, but where the employee actually receives the benefit of the gift or donation. E. g. , where an interested person donates fruit baskets to the city, but the contents are consumed by employees . The donations you mentioned do not appear to fall into the latter category. In each case, the benefits of the gift or donation are ultimately distributed to the public generally or persons other than city employees. Therefore, Chapter 377 does not prohibit employees from soliciting gifts to FOWL, the Richfield Foundation, Richfield Vision 2004, the Fourth of July Committee, or Loaves and Fishes. Sincerely, C~~- Corrine A. Heine ec : John Dean r ~% ~' ~~ - a.~- CITY OF RICHFIELD Memorandum DATE: October 19, 1994 TO: Corrine Heine, Holmes and Grav FROM: James D. Prosser, City Manag SUBJECT: City Employee Involvement in mmunity Based Funding Raising Efforts The City of Richfield has a number of philanthropic organizations. City employees have been encouraged to participate in those activities. Examples include Friends of Wood Lake, Richfield Foundation, the Richfield Vision 2004, the Fourth of July Committee, and Loaves and Fishes. City employees, as volunteer members to those organizations, have from time to time solicited donations, sponsorships for gifts to be used for the charitable organization's purposes. A question has been raised regarding the appropriateness of City employee involvement in these activities. I would appreciate your review of this matter in order that this item be discussed at a future time with the City Council. JDP:ds Copy: John B. Dean, Holmes and Graven Department Directors .J l~; -y-.~ 6700 Portland Avenue • Richfield, Minnesota 55423-2599 City Manager Mayor James C. Prosser Martin Kirsch October 19, 1994 Mr. Bob Lindgren 633 912th Avenue Richfield, MN 55423 Dear Mr. Lindgren: Council Don Priebe Michael Sandahl Susan Rosenberg Russ Susag Thank you very much for bringing to my attention your concern regarding solicitation of sponsors for the Friends of Wood Lake by City employees. You have a raised a very interesting question that I believe should be addressed by our City Council. I am currently preparing some materials regarding this matter so it may be reviewed by the Council at a later date. I will let you know when this item is scheduled, so that you may participate in the discussion. ly, J'am D. Prosser Cit Manager JDP:ds The Urban Hometown Telephone (612) 861-9700 Fax 861-9749 An Eauai C?poortunity Employer .J 6700 Portland Avenue • Richfield, Minnesota 55423-2599 City Manager Mayor Council James D. Prosser Martin Kirsch Don Priebe Michael Sandahl Susan Rosenberg Russ Susag November 3, 1994 Mr. Bob Lindgren 6339 12th Avenue Richfield, MN 55423 Subject: Solicitation of Sponsors by City Employees Dear Mr. Lindgren: City employee involvement in community-based fund raising efforts is scheduled as an agenda item for the December 5-City-Council Study Session. The meeting begins at 7 p.m. We will send you an agenda indicating the time that this item will be addressed so you may participate in the discussion. If you have any questions, please call me at 861-9705. rosser CitYy Manager JDP:cak Copy: Mayor and City Council Sines.' y, (~ i Jade ~. P The Urban Hometown Telephone (612) 861-9700 Fax 861-9749 An Equal Opportunity Employer CITY OF RICHFIELD, MINNESOTA Study Session Letter No.30 Agenda December 5, 1994 Issue Statement: Review of the Planning Commission's draft study and proposed regulations for adult uses. Background• On September 12, 1994, the City Council extended a moratorium for one year on the establishment of adult businesses in the City to permit the Planning Commission to finalize a study. Staff and the Planning Commission have researched and reviewed materials and studies relating to the subject. The Commission has also met with and received materials from James Thomson of the City Attorney's office. Based on their review, the Planning Commission has made some initial findings which they would like to share with the Council: • An adult use business is typically a business that is conducted exclusively for the patronage of adults and that generates revenue by featuring material, whether books, magazines, motion pictures or other entertainment that features or depicts sexual activities. • Adult businesses, not dealing in obscene materials, are protected by the First Amendment. (Obscene materials .may be prosecuted under state law.) • An adult use business cannot be regulated on the basis of the materials that they sell or the entertainment provided but only on the effect that such businesses have on the surrounding area. • A City must conclude that such businesses create adverse secondary effects such as neighborhood blight, diminished property values and increased crime. • Cities need not conduct their own adverse secondary effects studies but may rely on studies by other cities where reasonably related to the issues. • Adult uses may be either dispersed or concentrated by a zoning ordinance regulation but a reasonable opportunity area must be provided for such uses to locate. • Maps have been drafted and will be presented which depict several regulatory schemes including differing distances between such uses and from residence zones, churches, day care centers, parks and libraries. Recommended Motion: Listen to the presentation, review the attached documents and provide the Planning .Commission with direction regarding the development of regulations for adult uses. Basis of Recommendation: 1. The Planning Commission is requesting the City Council to review the materials at this stage to receive their comments and get direction regarding the development of regulations. 2. Review by the City Council this month will keep the study on schedule. Alternative Recommendation: Table or continue the item to a future City Council Study Session. Discussion/Decision Mode: This matter will be presented at the City Council Study Session of December 5, 1994. Respectfully submitted, James Prosser City nager JDP:cak Schedule for "Adult Uses" Study/Ordinance (Tentative) Staff presents draft report findings to PC Oct. 25, 1994 (regular PC mtg) Staff presents revised draft to PC Nov. 22, 1994 (regulaz PC mtg) Staff/PC presents proposal to CC Dec. 5, 1994 (CC study session) PC conducts public hearing Jan. 24, 1995 (regulaz PC mtg) CC first reading of ordinance -Feb. 1995 (regular CC mtg) CC second reading/public hearing Mar. 1995 (regular CC mtg) CITY OF RICHFIELD Memorandum DATE: November 30, 1994 TO: City Council FROM: Planning Commission SUBJECT: Adult Uses Study- Draft Introduction: f<<~_., ~; ~ The City of Richfield has regulated adult uses through a licensing procedure under Section 605 of the City Code (Appendix A). The Zoning Ordinance does not specifically contemplate adult uses. The licensing provisions responded to the "massage parlor" issues. of a decade ago. In recent years, other types of adult uses have appeared in other cities or inquiries received about uses which may not be covered by either the licensing provisions or the Zoning Ordinance. The City of Bloomington has recently completed a study on the regulation of adult uses and the Zoning Ordinance of the City of Hopkins has recently been challenged as unduly restrictive by an adult use video store. As a result, the City Council on October 25, 1993 approved a one year moratorium on the development of adult uses within the City and extended such moratorium on September 12, 1994 for an additional one year to provide adequate time to address the land use and zoning issues. During this time, staff and the Planning Commission has researched and accumulated materials and studies relating to the subject. The Planning Commission has had the materials available as well as heard from staff and the City Attorney's office on the topic. The Planning Commission is also at work on a comprehensive review and revision of the entire Zoning Code. Background: Zoning has long been recognized as a valid method to regulate land use in cities. See Village of Euclid v. Ambler Realty Co., 272 U.S. 365 (1926). In. reality, there is an exclusion or segregation of uses inherent in any such zoning ordinance. Zoning establishes districts and permits certain types of uses in each such district. More particularly, certain types of businesses are considered to have a blighting influence on other properties as a result of their operations. The oft cited use is the slaughter house or rendering plant. More recently, the City Council considered the potential blighting influences of businesses such as pawn shops and required that they be dispersed a specified distance from each other and away from residentially zoned property and other protected uses. There is an overriding differential when considering adult uses. The U.S. Supreme Court has concluded that adult businesses, not dealing in obscene materials, are protected by the First Amendment. Obscenity is not, however, protected and maybe prosecuted under state law. An adult use business is typically a business that generates revenue by featuring material, whether books, magazines, motion pictures or entertainment that features or depicts sexual activities. Any regulation of the First Amendment guarantees of freedom of communication and expression will be narrowly construed. The Scope of regulation has been delineated in great part by the U.S. Supreme Court in two cases: Youn v. American Mini Theatres, Inc. 427 US 50 (1976) and Renton v. Playtime Theatres, Inc. 475 US 41 (1986). Two other more recent Eighth Circuit cases from Minnesota are also attached: Holmberg v. C~ of Ramsey, No. 92-3897 MN, filed December 30, 1993 and ILQ Investments, Inc. v City of Rochester, No. 93-1925, filed June 15, 1994. Based on the above cases, any zoning regulation must be analyzed by reference to the following: An adult use cannot be regulated on the basis of the materials that they sell or the entertainment provided but only on the effect that such businesses have on the surrounding area. 2. A municipality must conclude that such adult businesses create adverse secondary effects such as neighborhood blight, diminished property values and increase crime. 3. Municipalities need not conduct their own adverse secondary effects studies. They can rely on studies performed by other cities, provided that the studies are reasonably related to the problem that the City is trying to address. 4. Either dispersal or concentration regulations may be utilized but, in either case, the City must allow a reasonable opportunity area in the City for adult uses to locate. ;:~ undertaken across the count of the There have ween a series ~f studies ry secondary effects of adult businesses. Some of these studies are outlined herein. The Planning Department of the City of Phoenix, Arizona published a study report in May 1979 entitled "Relation of Criminal Activity and Adult Business". The study compared three areas containing adult businesses with three comparable control areas. The study conclusions were that the adult business areas had crime rates of 143% of the control group for property crimes, 104% for violent crimes and 606% for sex crimes. It should also be noted that in one of the study areas the sex crime rate was 1135% of the control group area average. In that same study area, 89% of the reported indecent exposure crimes were committed at the addresses of adult businesses. The Division of Planning in the City of Indianapolis, Indiana undertook a dual planning study in 1983. Six areas containing adult businesses were compared with six comparable control areas relative to the factors of crime incidence. In the second part of the study, the City collaborated with Indiana University in a national survey of real estate appraisers to develop a "best professional opinion" as to the effect of adult entertainment businesses on surrounding real estate values. The findings were as follows: - The average major crime rate (i.e., crimes per 10,000 population) in the IPD District was 748.55, the Control Area 886.34, and the Study Area 1090.51.. Major crimes occurred in areas of the study that contained at least one adult entertainment establishment at a rate that was 23% higher than the six similar areas studies not having such businesses and 46% higher than the Police District at large. - .Although it was impossible to obtain a discrete rate for sex-related crimes at the police district level, it was possible to compare rates between the Control Areas and the Study areas. The average sex-related crime rate in the Control Areas over the five year period was 26.2, while that rate for the Study Areas was 46.4. - If the ratio of sex-related crimes was the same as that established for major crimes between the Control Area and the Study Area, however, we would expect asex-related crime rate of 32.3. The actual rate of~46.4 is 77% higher than that of the Control Areas rather than the 23% that would be expected and indicates the presence of abnormal influences in the Study Areas. - Close examination of crime statistics within the Study Areas indicate a direct correlation between crime and the residential character of the neighborhood. Crime frequencies were 56% higher in residential areas of the study than in its commercial areas. VRq~°T - At the same time, sex-related crimes occurred four times more frequently within residential neighborhoods having at least one adult entertainment business than in neighborhoods having a substantially district related commercial make-up having adult entertainment. - Although the housing base within the Study Areas was of a distinctly higher value than that of the control Areas, its value appreciated at only one-half the rate of the control Areas' and one-third the rate of Center Township as a whole during the period 1979 - 1982. - Pressures within the Study Areas caused the real estate market within their boundaries to perform in a manner contrary to that within the Control Areas, Center Township and the County. In a time when the market saw a decrease of 50% on listings, listings within the Study Areas actually increased slightly. - As a result, twice as many houses were placed on the market at substantially lower prices than would be expected had the Study Area's market performance been typical for the period of time in question. - The great majority of appraisers (75%) who responded to a national survey of certified real estate appraisers felt that an adult bookstore .located within one block would have negative effect on the value of both residential (80%) and commercial (72%) properties. 50% of these respondents foresaw an immediate depreciation in excess of 10%. - At a distance of three blocks, the great majority of respondents (71 %) felt that the impact of an adult bookstore fell off sharply so that the impact was negligible on both residential (64%) and commercial (77%). At the same time, if appears that the residual effect of such a use was greater for residential than for commercial properties. - In answer to a survey question regarding the impact of an adult bookstore on property values generally, 50% felt that there would be asubstantial-to-moderate negative impact, 30% saw little or no impact, and 20% saw the effect as being dependent on factors such as the predominant values (property and social) existing in the neighborhood, the development standards imposed on the use, and the ability of an existing commercial node to buffer the impact from other uses. 4 An April 1978 study by the St. Paul Division of Planning and the Minnesota Crime Control Planning Board entitled "Neighborhood Deterioration and the location of Adult Entertainment Establishments" looked at the relationship between alcohol serving adult entertainment and neighborhood blight. Adult uses without alcohol were not part of this study. ,The Summary, in part, is as follows: - There is a statistically significant relationship between the number of adult entertainment establishments (alcohol-serving and sexually oriented combined) located in an area and the deterioration of that area as reflected in housing values and crime rates. - Sexually oriented establishments tend to locate in areas which already reflect the effects of other adult entertainment establishments, making it difficult without further analysis to ascertain the unique contribution which sexually oriented establishments have on neighborhood deterioration. - While adult entertainment establishments tend to locate in areas of relative deterioration, there is clear indication that these establishments contribute heavily to the further deterioration of these same areas. Most significantly, the effect of adult entertainment establishments on neighborhood deterioration was found to be a threshold phenomenon; neighborhood deterioration is significantly greater in those. areas with more than two adult entertainment establishments of any type (alcohol-serving or sexually oriented). - There is an externality or social cost, as reflected in neighborhood deterioration, imposed on a neighborhood by the location of an adult entertainment establishment in that area. These costs are- ultimately reflected in higher taxes for all St. Paul citizens in order to support the delivery of more police services, and in a relatively depressed and eroding tax base in the affected areas, leading to even higher citywide tax rates. - Those areas with more than two adult entertainment establishment have sharply higher crime rates and sharply lower housing values than those with fewer than two such establishments. The June 1989 "Report of the Attorney General's Working Group on the Regulation of Sexually Oriented Businesses" also reported on the studies done by Minneapolis and Los Angeles. These are set out in the Report on pages 6 and 10. s ~'~~4fr Minneapolis: In 1980, on direction form the Minneapolis City Council, the Minneapolis Crime Prevention Center examined the effects of sex-oriented and alcohol-oriented adult entertainment upon property values and crime rates. This study used both simple regression and multiple regression statistical analysis to evaluate whether there was a causal relationship between these businesses and neighborhood blight. The study concluded that there was a close association between sexually oriented businesses, high crime rates and low housing values in a neighborhood. When the data was reexamined using control variables such as the mean income in the neighborhood to determine whether the association proved causation, it was unclear whether sexually oriented businesses caused a decline in property values. The Minneapolis study concluded that sexually oriented businesses concentrate in areas which are relatively deteriorated and, at most, they may weakly contribute to the continued depression of property values. However, the Minneapolis study found a much stronger relationship between sexually oriented businesses and crime rate. A crime index was constructed including robbery, burglary, rape and assault. The rate of crime in areas near sexually oriented businesses was then compared to crime rates in other areas. The study drew the following conclusions: The effects of sexually oriented businesses on the crime rate index is positive and significant regardless of which control variable is used. 2. Sexually oriented businesses continue to be associated with higher crime rates, even when the control variables' impacts are considered simultaneously. According to the statistical analysis conducted in the Minneapolis study, the addition of one sexually oriented business to a census tract area will cause an increase in the overall crime rate index in that area by 9.15 crimes per thousand people per year even if all other social factors remain unchanged. Los Angeles: A study released by the Los Angeles Police Department in 1984 supports a relationship between sexually oriented businesses and rising crime rates. This study is less definitive, since it was not designed to use similar areas as a control. The study indicated that there were 11 sexually oriented adult establishment in the Hollywood, California, area in 1969. By 1975, the number had grown to 88. During the same time period, reported incidents of "Part I" crime (i.e., homicide, rape, aggravated assault, robbery, burglary, larceny and ~'`' vehicle theft) increased 7.6 percent in the Hollywood area while the rest of Los Angeles had a 4.2 percent increase. "Part II" arrests. (i.e. forgery, prostitution, narcotics, liquor law violations, and gambling) increased 3.4 percent in the rest of Los Angeles, but 45.4 percent in the Hollywood area. Other reports considered include a Planning Advisory Report by William Toner, "Regulating Sex Businesses" May 1977 and "The Impact of Pornography: A Decade of Literature" by H.B. McKay and K.J. Kolff, 1984. Pertinent reviews of studies and the literature in the field include that by the Rochester/Olmstead Consolidated Planning Department for the City of Rochester in 1988 and the City of Ramsey Planning Report of September 1990. The recent set of documents and reports of the City of Bloomington is also attached. The Rochester report, as quoted by the Eighth Circuit, seemed a reasonable review of the findings of the variance studies: a) A considerable number of communities throughout the nation have studied the impacts which adult entertainments have on the areas surrounding them. b) These studies have concluded that adult entertainment uses have an adverse impact on the surrounding neighborhoods. c) Residential neighborhoods in proximity to adult uses suffer adverse effects including increased crime rates, lowered property values, and increased transiency. d) Values of both commercial and residential properties are diminished when located in proximity to adult entertainment businesses. e) The adverse impact on commercial areas is increased by the presence of more than one adult entertainment use in close .proximity to another adult entertainment use. f) The impact which an adult entertainment use has on the surrounding area appears to lessen as the distance for the adult entertainment use increases. g) Reasonable "time, place and manner" restrictions which address the "secondary" impacts of adult entertainment uses are constitutionally permissible. as well as the conclusions: - The concerns which have prompted public hearings in this city are similar to the concerns which motivated the communities of Indianapolis, Indiana; St. Paul, Minnesota; Phoenix, Arizona; and :;~ Seattle, Washington to undertake their studies of adult entertainment uses; consequently, the results of those studies are relevant to the existing or foreseeable impacts which such uses can have on the areas surrounding them in this city. - The concentration of adult entertainment uses in commercial areas or the location of adult entertainment uses in close proximity to residential uses, churches, parks and schools will result in devaluation of property values and decreases in commercial business sales, thereby reducing tax revenues to the City and adversely impacting the economic well-being of the citizens of this City. - Location of adult entertainment uses in proximity to residential uses, churches, parks, schools, bars, and other adult entertainment uses very likely would lead to increased levels of criminal activities, including prostitution, rape, assaults, and other sex-related crimes in the vicinity of such adult entertainment uses. Recommendation: The City should adopt zoning regulations which set distance requirements between adult use businesses and other sensitive areas or uses such as residentially zoned areas, schools, churches, parks, libraries and commercial child care facilities. 2. ,The City should adopt zoning regulations which disperse adult uses rather than concentrate them in a single area. 3. The City should adopt zoning regulations which set minimum distances between adult use businesses. 4. The City should adopt zoning regulations which restrict adult uses to one such adult use business per building. 5. The City should provide in the zoning regulations a reasonable area for adult uses to locate. s ~ ~ ~ , ,~ Appendix A - Section 605, Richfield City Code ~=~ ~°~, B - City of Renton v. Playtime Theatres, Inc., 475 US 41 (1986) C - Holmberg v. City of Ramsey, No. 92-3897 MN, U.S. Court of Appeals for the Eighth Circuit, 1993. D - ILQ Investments, Inc. v. City of Rochester, No. 93-1925, U.S. Court of Appeals for the Eighth Circuit, 1994. E - Community Crime Prevention Project of the Minnesota Crime Control Planing Board and the Division of Planning, Department of Planning and Economic Development of the .City of St. Paul, "Neighborhood Deterioration and the Location of Adult Entertainment Establishments in St. Paul" April 1978. F - Department of Metropolitan Development Division of Planning, "Adult Entertainment Business in Indianapolis An Analysis, "February 1984. G - City of Phoenix Planning Department, "Relation of Criminal Activity and Adult Businesses", May 1979. H - "Report of the Attorney General's Working Group on the Regulation of Sexually Oriented Businesses", June 6, 1989. I - Division of Planning, Department of Planning and Economic Development of the City of St. Paul, "A 40-Acre Study", 1987. J - Northwest Associated Consultants, Inc., "Planning Report City of Ramsey Adult Uses", 1990. K - Rochester/Olmsted Consolidated Planning Department and office of the Rochester City Attorney, "Adult Entertainment, Land Use and Legal Perspectives", March 2, 1988. L - William Toner, "Regulating Sex Businesses", ASPO Planning Advisory Service Report No. 327, May 1977. M - H.B. McKay and D.J. Dolff, "The Impact of Pornography: A Decade of Literature" , 1984. N - City of Bloomington, "Conclusions Reached by Other Cities Studying the Adverse Secondary Effects of Sexually Oriented Businesses, "and "Recommendations of the Attorney General's Working Group on the Regulation of Sexually Oriented Businesses 1989",and "Ordinances Recommended by the Staff Committee on Sexually Oriented Businesses 1994" and miscellaneous memoranda. O - City of Houston, Committee on the regulation of sexually oriented businesses. Legislative reports dated December 1983, March 1986, and January 1991. io HOLMES & GRAVEN CHARTERED Attoroeys at Law ROBERT A. ALSOP RONALD H. $ATTY STEPHEN J. BUBUL JOHN B. DEAN MARY G. DOBBUQS STEFANIE N. GALEY CORRWE A. HEINE JAMES S. HOLMES DAVID J. KENNEDY JOHN R. CARSON WELLINGTON H. LAW CHARLES L. LEFEVERE JOAN M. LEFEVRE, JR. ROBERT J. LINDALL November 18, 1994 Shawn. Drill Zoning Administrator City of Richfield 6700 Portland Avenue Richfield, MN 55423-2598 Re: Adult Use Ordinance Dear Byron: 470 Pillsbury Center, Minneapdis, Minnesota 55402 (612) 337-9300 ROBERT C. LONG LAURA K. MOLLET Facsimile (612) 337-9310 BARBARA L. PORTwOOD JAMES M. SfROMMEN JAMES J. THOMSON, JR. LARRY M. WERTHEIM BONNIE L. WILKINS WRITER'S DIRECT DIAL GARY P. WINTER 337-9209 DAVID L. GRAVEN (1929-1991) VIA RAPIFAX AND MAIL oFCOUNSEL _ ROBERT C. CARLSON ROBERT L. DAVIDSON T. JAY SALMEN Pursuant to your request I am enclosing an outline of a proposed ordinance pertaining to adult establishments . I believe that the Planning Commission needs to address the following issues: 1. The separation distance, and how it will be measured, between adult uses and the protected uses . 2. Whether adult novelty businesses should be regulated. 3. How should the phrase "substantial or significant" be defined (i.e. , as a percentage of floor area, inventory or volume of sales) ? 4. How would a new ordinance effect existing businesses, such as video stores that have a portion of their inventory devoted to adult videos . After the Planning Commission meets on Tuesday, I recommend that I sit down with you and Shawn to refine the ordinance language. Sincerely, J es .Thomson JJT / lmb Enclosure JJT79673 RC160-5 ~~ ;~ ~~ ORDINANCE N0. AN ORDINANCE REGULATING ADULT ESTABLISHMENTS AND. ADDING A NEW SECTION TO THE RICHFIELD ZONING CODE. THE CITY OF RICHFIELD ORDAINS: Section. l.. The Richfield Zoning Code is amended by .adding a new section to read: Section 555 - Adult Establishments. 555.01. Definitions. Subd. 1. Adult Establishment. A business engaged in any of the following activities or which utilizes any of the following business procedures or practices: (a) a business that is conducted exclusively for the patronage of adults and as to which minors are specifically excluded from patronage, either by operation of law or by the owners of such business, except any business licensed under Chapter XII of the Richfield City Code; (b) any business .that has a substantial or significant portion of its floor space, inventory or volume of business .that is characterized by an emphasis on material depicting, exposing, describing, discussing or relating. to specified sexual activities or specified anatomical areas. An adult establishment includes, but is not limited to, any adult use as defined in this section or any use regulated by Section 605 of the Richfield City Code. Subd. 2. Adult Use. An adult use is any of the activities- and businesses described below: (1) Adult Body Painting Studio: An establishment or business which provides the service of applying paint or other substance, whether transparent or non- transparent, to the body of a patron when such person is nude. For purposes of this definition, the term "nude" means the same thing as "specified anatomical areas." JJT79672 RC160-5 1 o`~~ pT (2) Adult Bookstore: An establishment or business used for the barter, rental or sale of items consisting of printed matter, pictures, slides, records, audio tape, videotape., or motion picture film if such business is not open to the public generally but only to one or more classes of the public,. excluding any minor by reason of age, or if a substantial or significant portion of such business or establishment is devoted to material distinguished and characterized by an emphasis on the depiction or description of "specified sexual activities" or "specified anatomical areas." (3) Adult Cabaret. A business or establishment that provides dancing or other live entertainment that excludes minors by virtue of age or if such danc- ing or other live entertainment is distinguished and characterized by an emphasis on the .presentation, ,display, depiction or description of "specified sexual activities" or specified anatomical areas." (4) Adult Companionship Establishment: A business or establishment that excludes minors by reason of age, and which provides the service of engaging i n or listening to conversation, talk or discussion between an employee of the establishment and a customer, if such service is distinguished and characterized by an emphasis on "specified - sexual activities" or "specified anatomical areas." (5) Adult Conversation/Rap Parlor: A business or establishment that excludes minors by reason of age, and which provides the services of engaging in or listening to conversation, talk, or discussion, if such service is distinguished and characterized by an emphasis on "specified sexual activities" or "specified anatomical areas." (6) Adult Health/Sport Club: A health/sport club which excludes minors by reason of age, if such club is distinguished and characterized by an emphasis on JJT79672 RC160-5 2 "specified sexual activities" or "spec- ified anatomical areas." (7) Adult Hertel or Motel: A hotel or motel .from which minors are specifically excluded from patronage and where materi- al is presented which is distinguished and characterized by an emphasis on matter depicting, describing or relating to "specified sexual activities" or "specified anatomical areas." (8) Adult Massage Parlor, Health Club: A massage parlor or health club which restricts minors by reason of age, and which provides the services of massage, if such service is distinguished and characterized by an emphasis on "specified sexual activities" or "specified anatomical areas." (9) Adult Mini-Motion Picture Theater: A business or establishment with a capacity. for less than 50 persons used for presenting material if such material is distinguished and characterized by an emphasis on matter depicting, describing or relating to "specified sexual activities" or "specified anatomical. areas." (10) Adult Modeling Studio: A business or establishment that provides customers figure models who are so provided with the intent of providing sexual stimulation or sexual gratification to such customers and who engage in "specified sexual activities" or display "specified anatomical areas" while being observed, painted, painted upon, sketched, drawn, sculptured, photo- graphed, or otherwise depicted by such customers. (11) Adult Motion Picture Arcade: Any place to which the public is permitted or invited where coin or slug-operated or electronically, electrically or mechanically controlled or operated still or motion picture machines, projectors or other image-producing devices are maintained to show images to five or fewer persons per machine at any one time, and where the images so displayed JJT79672 RC160-5 3 ~'~'~lfiT are distinguished and characterized by an emphasis on depicting or describing "specified sexual activities" or "specified anatomical areas." (12) Adult Motion Picture Theater: A motion picture theater with a capacity of 50 or more persons used for presenting material if such theater as a prevailing practice excludes minors by reason of age or if such material is distinguished or characterized by ,an emphasis on "specified sexual activities" or "spec- ified anatomical areas" for observation by patrons. (13) Adult Novelty Business: A business which has as a principal activity the sale of devices which stimulate human genitals or devices which are designed for sexual stimulation. (14) Adult Sauna: A sauna which excludes minors by reason of age, and which provides a steam bath or heat bathing room used for the purpose of bathing, relaxation, or reducing, utilizing steam or hot air as a cleaning, relaxing or reducing agent, if the service provided by the sauna is distinguished or characterized by an emphasis. on "speci- fied sexual activities" or "specified anatomical areas." (15) Adult Steam Room/Bathhouse Facility: A building or portion of a building used for providing a steam bath or heat bathing room used for the purpose of pleasure, bathing, relaxation, or reduc- ing, utilizing steam or hot air as a cleaning, relaxing or reducing agent if such building or portion of a building restricts minors by reason of age and if the service provided by the steam room/bathhouse facility is distinguished and characterized by an emphasis on "specified sexual activities" or "specified anatomical areas." Subd. 3. Specified Anatomical Areas: (1) Less than completely and opaquely covered human genitals, pubic region, buttock, anus, or female breast(s) below a point JJT79672 RC160-5 4 ~~. ~~~ ;. immediately above the top of the areola; and (2) Human male genitals in a discernibly turgid state, even if completely and opaquely covered. Subd. 4. Specified Sexual Activities. (1) Actual or simulated sexual intercourse, oral copulation, anal intercourse, oral- anal copulation, bestiality, direct physical stimulation of unclothed genitals, flagellation or torture in the context of a sexual relationship, or the use of excretory functions in the context of a sexual relationship, and any of the following sexually-oriented acts or con- duct: anilingus, buggery, coprophagy, coprophilia, cunnilingus, fellatio, necrophilia, pederasty, pedophilia, piquerism, sapphism, zooerasty; or (2) Clearly depicted human genitals in the state of sexual stimulation, arousal or tumescence; or (3) Use of human or animal ejaculation, sodomy, oral copulation, coitus, or masturbation; or (4) Fondling or touching of nude human genitals, pubic region, buttocks, or female breast(s); or (5) Situations involving a person or persons, any of whom are nude, clad in undergarments or in sexually revealing costumes, and who are engaged in activi- ties involving the flagellation, torture, fettering, binding or other physical restraint of any such persons; or (6) Erotic or lewd touching, fondling or other sexually oriented contact with an animal by a human being; or (7) Human excretion, urination, menstruation, vaginal or anal irrigation. Subd. 5. Substantial or Significant. For purposes of this section, the phrase "substantial or significant" means that either ~ or more of an adult establishment's inventory, floor JJT79672 RC160-5 5 ~~'qFp area or gross sales is from material that characterized by an depicting, describing o sexual activities or areas. devoted to or derived is distinguished or emphasis on matters r relating to specified specified anatomical _ 555.03. Permitted Uses. Adult establishments are permitted uses in the C-2, PC-2, and I zoning districts. 555.05. Location. No adult establishment may be located within feet of a residential zoning district, a park, a school, a church, a library or a commercial daycare center or within feet of another adult establishment. ~'~~r~~#~~'k Section 2. Effective Date. This ordinance is effective in accordance with Section 3.09 of the Richfield City Charter. Passed by the City Council of the City of Richfield, Minnesota this day of , 1994. ATTEST: Thomas P. Ferber, City Clerk Martin J. Kirsch, Mayor JJT79672 RC160-5 6