04-25-2017 Complete AgendaS P E C IAL C IT Y C O U N C IL W O R K SESSIO N
R IC H F IE L D MU N IC IPAL C EN TER, B AR T H O L O ME W R O O M
AP R IL 25, 2017
5:15 P M
C all to order
1.D iscussion of the preferred composition of the B oard of C ommissioners of the prospective E conomic
D evelopment A uthority.
A djournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at
least 96 hours in advance to the City Clerk at 612-861-9738.
CITY OF RICHFIELD, MINNESOTA
Office of City Manager
April 20, 2017
Council Memorandum No. 39 HRA Memorandum No. 11
Housing and Redevelopment
The Honorable Mayor Authority Commissioners
And City of Richfield
Members of the City Council
Subject: Further Information on the Formation of an Economic Development
Authority
Council Members:
Based on prior discussions during the 2016 Goal Setting and budgeting processes, City
staff had recommended the consideration of the formation of an Economic Development
Authority (EDA). Based on that recommendation, the City Council and Housing and
Redevelopment Authority (HRA) held a joint Work Session on March 20, 2017 to
discuss the topic.
At that meeting, there was general consensus that the formation of an ED A would
provide both the authority and a funding mechanism (through an EDA levy) to provide
beneficial economic development, business assistance and housing assistance
programming. Staff was directed to take the necessary administrative steps in order to
bring action steps to the City Council and/or HRA for formal consideration of the
creation of an EDA.
Staff has since leaned that, in order to impose an EDA levy in 2018, the City must form
an EDA prior to July 1, 2017. The procedure for creation of an EDA calls for:
Holding a Public Hearing to adopt an enabling resolution for the creation of an
EDA (tentatively scheduled for May 9);
An initial meeting of the EDA to create bylaws , elect officers, etc. and to request
the City impose an EDA levy (not scheduled, but should take place in late
May/early June), and;
The City Council would approve the imposition of an EDA levy (tentatively
scheduled for June 13).
One item that was not resolved at the March 20 Work Session was the preferred
composition of an EDA. The two choices that were discussed were either having the
membership be coincidental to HRA membership or coincidental to the City Council. In
the legal notices that were required to be published for the May 9 Public Hearing, staff
wrote, “The Authority will be governed by a five-member board of commissioners. At
least two commissioners shall be members of the City Council.” This would describe an
EDA membership that reflected either the City Council or HRA.
A City Council Work Session has been scheduled for 5:15 p.m. on April 25 to discuss
the preferred composition of the Board of Commissioners for the prospective EDA.
Respectfully submitted,
Steven L. Devich
City Manager
SLD:jcs
Email: Assistant City Manager
Department Directors
S P E C IAL C O N C U R R E N T C IT Y C O U N C IL AN D H O U S IN G AN D R E D E V E LO P ME N T
AU TH O R IT Y W O R K S E S S IO N
R IC H F IE L D MU N IC IPAL C EN TER, B AR T H O L O ME W R O O M
AP R IL 25, 2017
5:30 P M
C all to order
1.P resentati on and discussion regardi ng affordable housing.
A djournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at
least 96 hours in advance to the City Clerk at 612-861-9738.
CITY OF RICHFIELD, MINNESOTA
Office of City Manager
April 20, 2017
Council Memorandum No. 44 HRA Memorandum No. 13
Housing and Redevelopment
The Honorable Mayor Authority Commissioners
and City of Richfield
Members of the City Council
Subject: Naturally-Occurring Affordable Housing Discussion
Council Members:
At the request of a Council Member, Christine Hart from CAPSH (Community Action
Partnership of Suburban Hennepin) will be presenting information relating to the Twin
Cities region’s supply of naturally-occurring affordable rental housing at a work session
next Tuesday, April 25th at 5:30 p.m.
Respectfully submitted,
Steven L. Devich
City Manager
SLD:kcb
Email: Assistant City Manager
Department Directors
S P E C IAL C IT Y C O U N C IL W O R K SESSIO N
R IC H F IE L D MU N IC IPAL C EN TER, F R E D B AB C O C K R O O M
AP R IL 25, 2017
6:45 P M
C all to order
1.D iscussion of Transportation C ommi ssi on appointment
A djournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at
least 96 hours in advance to the City Clerk at 612-861-9738.
CITY OF RICHFIELD, MINNESOTA
Office of City Manager
April 20, 2017
Council Memorandum No. 40
The Honorable Mayor
and
Members of the City Council
Subject: Transportation Commission Appointment Discussion
Council Members:
Discussion of appointment to the Transportation Commission is scheduled for Tuesday,
April 25, 2017, at 6:45 p.m. in the Fred Babcock Room. You will need your badge to
have access to the room.
The following materials are included for your review:
Applicant list with preference(s) indicated
Commission applications
o NOTE: Only applicants not currently appointed and indicated a preference
for the Transportation Commission. Staff contacted the applicants and
confirmed they are still interested in serving on the Commission.
Approval of the appointment is scheduled for the April 25, 2017, Council meeting.
Respectfully submitted,
Steven L. Devich
City Manager
SLD:jjv
Attachments
Email: Assistant City Manager
Department Directors
R EG U LAR C IT Y C O U N C IL ME E TIN G
R IC H F IE L D MU N IC IPAL C EN TER, C O U N C IL C H AMB E R S
AP R IL 25, 2017
7:00 P M
IN TR O D U C TO RY P R O C E E D IN G S
C all to order
Open forum (15 mi nutes maximum)
E ach speaker is to keep their comment period to three minutes to allow sufficient time for others. C omments
are to be an opportunity to address the C ouncil on items not on the agenda. I ndividuals who w ish to address
the C ouncil must have registered prior to the meeting.
P ledge of A llegiance
A pproval of the mi nutes of the Regular C ity C ouncil Meeting of A pril 11, 2017.
P R E S E N TATIO N S
1.P resentation by the Richfield S TE M/D ual L anguage S chool combined 5th Grade C hoir
2.P resentation of proclamation designating E arth D ay/A rbor Month/Tree C ity US A
3.P resentation of the Richfield Tourism P romotion B oard, Inc. audited financi al report for year-end D ecember 31,
2016
C O U N C IL D IS C U S S IO N
4.Hats Off to Hometown Hits
AG E N D A AP P R O VAL
5.A pproval of the A genda
6.Consent C alendar contains several separate items, which are acted upon by the City C ouncil in one
motion. Once the C onsent Calendar has been approved, the individual items and recommended
actions have also been approved. No further Council action on these items is necessary. However, any
Council Member may request that an item be removed from the Consent Calendar and placed on the
regular agenda for C ouncil discussion and action. All items listed on the C onsent C alendar are
recommended for approval.
A .C onsi deration of the approval of resolutions for reimbursement of certain expenditures from the proceeds
of reconstruction bonds to be issued by the C ity for the 66th S treet Reconstruction and 6-Year Mill and
Overlay projects.
S taff Report No. 69
7.C onsideration of items, if any, removed from C onsent C alendar
R E S O L U T IO N S
8.C onsideration of the approval of a resolution directing X cel E nergy to underground overhead utilities along 66th
S treet between X erxes Avenue and 16th Avenue and support the recovery of $1,325,000 to X cel E nergy through
a surcharge to the C ity’s ratepayers.
S taff Report No. 70
C IT Y MAN AG E R ’S R E P O R T
9.C ity Manager's Report
C L AIMS AN D PAYR O LL S
10.C laims and P ayrolls
Open forum (15 mi nutes maximum)
E ach speaker is to keep their comment period to three minutes to allow sufficient time for others. C omments
are to be an opportunity to address the C ouncil on items not on the agenda. I ndividuals who w ish to address
the C ouncil must have registered prior to the meeting.
11.A djournment
Auxiliary aids for individuals with disabilities are available upon request. R equests must be made at least 96
hours in advance to the C ity Clerk at 612-861-9738.
CALL TO ORDER
The meeting was called to order by Mayor Elliott at 7:00 p.m. in the Council Chambers.
Council Members Pat Elliott, Mayor; Edwina Garcia; Maria Regan Gonzalez; and Michael
Present: Howard.
Staff Present: Steven L. Devich, City Manager; Mary Tietjen, City Attorney; John Stark,
Community Development Director; Jay Henthorne, Public Safety
Director/Police Chief; Kristin Asher, Public Works Director; Melissa Poehlman,
City Planner; and Jared Voto, Executive Aide/Analyst.
OPEN FORUM
Grace Verbrugge, 6708 Irving Ave S, spoke regarding the Convention on the Elimination of all
forms of Discrimination Against Women (CEDAW).
PLEDGE OF ALLEGIANCE
Mayor Elliott led the Pledge of Allegiance.
APPROVAL OF MINUTES
M/Garcia, S/Howard to approve the minutes of the: (1) Special Concurrent City Council and
HRA Work Session of March 20, 2017; (2) Special City Council Work Session of March 27, 2017; (3)
Special City Council Work Session of March 28, 2017; (4) Regular City Council Meeting of March 28,
2017; and (5) Special City Council Work Session of April 5, 2017.
Motion carried 4-0.
Item #1
PRESENTATION BY HENNEPIN COUNTY ATTORNEY MIKE FREEMAN
Hennepin County Attorney Mike Freeman discussed multiple issues regarding criminal justice
in the County and Richfield.
Council Members thanked him for attending and presenting the information.
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Meeting
April 11, 2017
Council Meeting Minutes -2- April 11, 2017
Item #3
APPROVAL OF THE AGENDA
M/Howard, S/Regan Gonzalez to approve the agenda.
Motion carried 4-0.
Item #2
COUNCIL DISCUSSION
Hats Off to Hometown Hits
Council Member Garcia commented on the interviews for the Comprehensive Plan Advisory
Committee and read the names of those selected for the Committee:
Rich Jabs
Barry LeBlanc
Michele McGee
Laurel Nightingale
Kathryn Quam
Candace Johnson
Jennifer Lewis
Council Member Howard thanked the Richfield Bloomington Credit Union and Recreation
Services staff for the Easter egg hunt held last Saturday; mentioned the 66th Street Reconstruction
project; and a Holocaust Remembrance reading at Augsburg Library on April 24 from 4:00 to 8:00
p.m., with members of the community reading the entire book.
Council Member Regan Gonzalez echoed Council Member Garcia’s comments on the
interviews for the Comprehensive Plan Advisory Committee and discussed the Committee’s first
meeting held on April 10, and discussed Children Dental Services will be at the Richfield Health Clinic
on April 20 from 8:30 a.m. to 5:00 p.m.
Mayor Elliott discussed he attended the Health Expo at the Richfield High School on April 8
and asked residents to support the Minnesota Magicians who made the playoffs and have games on
Friday and Saturday (April 14/15).
Item #4
CONSENT CALENDAR
City Manager Devich presented the Consent Calendar.
A. Consideration of the approval of a resolution in support of the Convention on the Elimination of
all Forms of Discrimination against Women. (S.R. NO. 62)
RESOLUTION NO. 11350
RESOLUTION SUPPORTING RESIDENTS FOR THE CONVENTION
ON THE ELIMINATION OF ALL FORMS OF DISCRIMINATION
AGAINST WOMEN (CEDAW ) INITIATIVE
This resolution appears as Resolution No. 11350.
Council Meeting Minutes -3- April 11, 2017
B. Consideration of the approval of a resolution amending a Planned Unit Development,
Conditional Use Permit, and Final Development Plan to allow construction of a new Panera
Bread restaurant building with a drive-thru at The Shops at Lyndale. (S.R. NO. 63)
RESOLUTION NO. 11351
RESOLUTION APPROVING AN AMENDED FINAL DEVELOPMENT
PLAN AND CONDITIONAL USE PERMIT FOR THE SHOPS AT
LYNDALE PLANNED UNIT DEVELOPMENT
This resolution appears as Resolution No. 11351.
C. Consideration of the approval of a contract in the amount of $42,211 with Ron Kassa
Construction, Inc. for the 2017 Alley Paving project. (S.R. NO. 64)
D. Consideration of the approval of a resolution appointing election judges for the May 23, 2017,
Special Election. (S.R. NO. 65)
RESOLUTION NO. 11352
RESOLUTION APPOINTING ELECTION JUDGES FOR THE MAY 23,
2017, SPECIAL ELECTION
This resolution appears as Resolution No. 11352.
E. Consideration of the approval of a request for a new Therapeutic Massage Enterprise license
for Concierge Spa, LLC, located at 7620 Penn Avenue South. (S.R. NO. 66)
M/Howard, S/Garcia to approve the consent calendar.
Motion carried 4-0.
Item #5
CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM THE CONSENT
CALENDAR
None.
Item #6
CONSIDERATION OF THE APPROVAL OF ORDINANCE AMENDMENTS
CREATING A CEDAR CORRIDOR OVERLAY DISTRICT AND CHANGE THE
ZONING OF PROPERTIES WITH THE CEDAR CORRIDOR AREA (ROUGHLY
66TH STREET TO 77TH STREET, EAST OF 17TH AVENUE) TO MATCH THE
DESIGNATIONS IN THE COMPREHENSIVE PLAN AND APPROVAL OF A
RESOLUTION FOR SUMMARY PUBLICATION OF THE SAME. (S.R. NO. 67)
Council Member Regan Gonzalez presented Staff Report No. 67. She then asked staff to
provide additional information.
City Planner Poehlman responded by providing additional information regarding the overlay
district and zoning changes in the corridor.
Council Member Howard asked about the website address of the Cedar Avenue Corridor
Master Plan. Staff responded that it is www.cityofrichfield.org/cedar.
Council Meeting Minutes -4- April 11, 2017
Council Member Regan Gonzalez commented on the importance of the plan and her
excitement for future of the east side.
Mayor Elliott echoed his excitement for the east side.
M/Regan Gonzalez, S/Elliott to approve ordinance amendments creating a Cedar Avenue
Corridor Overlay District, rezoning properties with the Cedar Avenue Corridor area, and making a
number of administrative corrections to Appendix I of the City Code and approve a resolution for
summary publication of the same.
RESOLUTION NO. 11353
RESOLUTION APPROVING SUMMARY PUBLICATION OF BILL NO.
2017-6
Motion carried 4-0. This resolution appears as Resolution No. 11353.
Item #7
CONSIDERATION OF THE APPROVAL OF A RESOLUTION GRANTING A SIX-
MONTH INTERIM USE PERMIT, WITH STAFF DISCRETION TO ISSUE TWO
THREE-MONTH EXTENSIONS, TO ALLOW THE CONTINUED USE OF 6529
PENN AVENUE FOR USED CAR SALES. (S.R. NO. 68)
Council Member Howard presented Staff Report No. 68. He then asked staff if they had
additional comments.
Community Development Director Stark commented about the discretionary extensions would
be based on progress with the redevelopment. If there was not progress his choice would be not to
issue a discretionary extension. It has to be based on progress on the new development.
Council Member Howard asked about any update on the site.
Community Development Director Stark responded that since the work session the feedback
from the Dunkin Donuts franchisee was positive and they were moving forward with the project. He
stated the property owner was in attendance and invited them to speak if they had an update.
Rick Hauser, property owner at 6529 Penn Avenue, stated they had not submitted applications
at this time but they are working through them. They first needed to get an engineer hired to ensure
the utility requirements and grade of the property work properly. Once that is complete they hope to
submit applications in the next 30 to 60 days.
M/Howard, S/Elliott to approve a resolution granting a six-month interim use permit, with staff
discretion to issue two three-month extensions, to allow the continued use of 6529 Penn Avenue for
used car sales.
RESOLUTION NO. 11354
RESOLUTION APPROVING AN INTERIM USE PERMIT TO ALLOW
USED AUTO SALES BY INTERSTATE AUTO GROUP DBA CARHOP
AT 6529 PENN AVENUE
Motion carried 4-0. This resolution appears as Resolution No. 11354.
Council Meeting Minutes -5- April 11, 2017
Item #8
CITY MANAGER’S REPORT
City Manager Devich discussed the May 23, 2017, City Council meeting is scheduled the
same date of the Special Election, and a meeting cannot be held on that day by State law. He asked
Council to consider moving the meeting to Wednesday, May 24, at 7 p.m. and also have a special
meeting on Friday, May 26, at 8:00 a.m. to canvass the election. Council Members all agreed those
dates and times worked well for them. City Manager Devich stated he would take care of scheduling
the meetings.
City Manager Devich discussed a vacancy on the Transportation Commission due to Sue
Sandahl being appointed to the HRA on March 10. He asked if Council would like to have a 15 minute
Work Session on April 25 to review applications of those not previously appointed. Mayor Elliott
commented that he was in favor of the Work Session as it is the reason the Council asked to hold
over the application from those who were not placed on a commission. Council Members discussed
the process of appointing commissioners when vacancies happen mid-term. They agreed with the
quality applicants that were interviewed earlier this year it made sense to appoint now, rather than
wait and determine if there were more vacancies mid-year.
Council Members discussed a memorandum that was given to the Council and HRA
Commissioners regarding the review of the transition of Concierge Apartments. Mayor Elliott asked
the memo be posted on the website so it was accessible for citizens to review. Council Member
Howard commented on having a Work Session to discuss this issue and “what we do next” to address
these challenging issues. Mayor Elliott discussed talking to the management and owners of buildings
that may be in line for acquisition to not ask for a seat at the table, as it’s a private transaction, but to
make them aware of the concerns of tenants and give lead time to accommodate the potential
changes. Council Member Howard agreed and said it’s a communication issue. Council Member
Regan Gonzalez commented on inviting the School District to these discussions as they have a
vested and shared interest in the topic. Council Member Garcia thanked Community Development
Director Stark for the memo.
City Manager Devich discussed scheduling of a goal setting meeting and asked Council for
their thoughts. Council Members agreed to schedule a date in late April or May.
Item #9
CLAIMS AND PAYROLLS
M/Garcia, S/Elliott that the following claims and payrolls be approved:
U.S. Bank 04/11/17
A/P Checks: 257632 - 257912 $ 1,319,321.77
Payroll: 126711 - 127031 595,100.83
TOTAL $ 1,914,422.60
Motion carried 4-0.
OPEN FORUM
None.
Council Meeting Minutes -6- April 11, 2017
Item #10
ADJOURNMENT
The City Council Meeting was adjourned by unanimous consent at 8:00 p.m.
Date Approved: April 25, 2017
Pat Elliott
Mayor
Jared Voto Steven L. Devich
Executive Aide/Analyst City Manager
AGENDA SECTION:CONSENT CALENDAR
AGENDA ITEM #6.A.
STAFF REPORT NO. 69
CIT Y COUNCIL ME E T ING
4/25/2017
RE P O RT P RE PA RE D B Y: Mike P etersen, Utilities E ngineer
D E PA RTM E NT D IRE C TOR RE V IE W: K ristin A sher, P ublic Works D irector
4/19/2017
O TH E R D E PA RTM E NT RE V IE W: N/A
C ITY M A NA G E R RE V IE W: S teven L . D evich, C ity Manager
4/20/2017
I T E M F O R C O UNC I L C O NS I D E RAT IO N:
Consideration of the approval of resolutions for reimbursement of certain expenditures from the
proceeds of r econstruction bonds to be issued by the City for the 66th S treet Reconstruction and 6-
Year Mill and O verlay projects.
E X E C UT IV E S UM M ARY:
On April 12, 2016, the C ity Council approved a 5-Year Street Reconstruction Plan and the use of street
rec onstruction bonds for 2017-2019 c onstruction of the following projects:
66th Street Rec onstruc tion
6-Year Mill and Overlay projec ts
Approval of the proposed resolutions will enable City staff to begin inc urring c onstruc tion c osts for these
projects. The resolution allows costs incurred up to 60 days prior to Council approval of the resolution to be
reimbursed using the proc eeds of the street rec onstruc tion bonds.
RE C O M M E ND E D AC T IO N:
By Motion:
Approve a r esolution for reimbursement of certain expenditures from proceeds of street
reconstr uction bonds to be issued by the City for the 66th Street Reconstruction project.
Approve a r esolution for reimbursement of certain expenditures from proceeds of street
reconstr uction bonds to be issued by the City for the 6-Year Mill and Overlay project.
B AS IS O F RE C O M M E ND AT IO N:
A.H IS TOR IC AL C ON TEXT
At the Marc h 22, 2016, City Council W orksession, the following projec ts were discussed as part
of the 2017 5-Year Street Reconstruction Plan:
77th Street Underpass (2017)
66th Street Reconstruction (2017-2020)
6-Year Mill and Overlay (2017-2020)
65th Street Reconstruction (2020)
P enn Avenue Rec onstruction (2021)
At the April 12, 2016, City Council Meeting, the Council approved the 5-Year Street
Rec onstruc tion Plan and adopted a resolution authorizing the issuance of street reconstruction
bonds for the 2017-2019 construction projec ts.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
I n order to utilize the Street Reconstruction Bonds, the following must and has oc curred:
Creation of a 5-Year Street Reconstruction Plan (April 2016)
P ublic Hearing regarding the 5-Year Street Rec onstruction P lan and I ssuanc e of Bonds
(A pril 12, 2016)
A doption of a resolution approving the plan and giving preliminary approval of the issuance
of bonds (April 12, 2016)
City C ounc il approval of plan and issuance of bond by a vote of all members present at the
meeting (April 12, 2016 - 5-0 vote)
30 day period where voters may petition for a referendum, or vote, on the issuing of bonds
(expired May 12, 2016)
The 5-Year Street Rec onstruction P lan is revised annually with the Capital I mprovement Plan.
C.C R IT IC AL T IMIN G ISSU E S:
66th S treet is in dire need of reconstruc tion and the Mill and Overlay projec t is needed to maintain
the integrity of Ric hfield's residential streets.
The reimbursement resolutions are nec essary to cover any project costs incurred prior to the sale
of the bonds.
D.F IN AN C IAL IMPAC T:
Adoption of the proposed reimbursement resolution provides approval for City staff to incur costs
for the 66th Street Reconstruction and Mill and Overlay projects.
The c urrent bond amounts for the projects are:
66th Street Reconstruction $15,200,000
6 Year Mill and Overlay Projec t $ 5,800,000
Total $21,000,000
E.L E GAL C ON S ID E R AT ION :
The C ity Attorney will be available to answer questions.
ALT E R N AT IV E R E C O MME N D AT IO N(S):
None
P R IN C IPAL PAR TIE S EXP E C T E D AT ME E T IN G:
None
AT TAC H ME N TS :
D escripti on Type
66th S t. Resolution Resolution L etter
Mill & Overlay Resolution Resolution L etter
A pproved 5 Year S treet Reconstruction P lan B ackup Materi al
RESOLUTION NO. _______
DECLARING THE OFFICIAL INTENT OF THE CITY OF
RICHFIELD TO REIMBURSE CERTAIN EXPENDITURES
FROM THE PROCEEDS OF BONDS TO BE ISSUED BY
THE CITY WITH RESPECT TO THE 66th STREET
RECONSTRUCTION PROJECT
WHEREAS , the Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the
“Reimbursement Regulations”) providing that proceeds of tax-exempt bonds used to
reimburse prior expenditures will not be deemed spent unless certain requirements are
met; and
WHEREAS, the City of Richfield, Minnesota (the “City”) expects to incur certain
expenditures that may be financed temporarily from sources other than bonds, and
reimbursed from the proceeds of tax-exempt bonds; and
WHEREAS, the City has determined to make this declaration of official intent (the
“Declaration”) to reimburse certain costs from proceeds of bonds in accordance with the
Reimbursement Regulations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF RICHFIELD, MINNESOTA AS FOLLOWS :
1. The City proposes to undertake the 66th Street Reconstruction Project within
the City (the “Project”).
2. The City reasonably expects to reimburse the expenditures made for certain
costs of the Project from the proceeds of bonds in an estimated maximum principal
amount of $15,200,000. All reimbursed expenditures will be capital expenditures, costs of
issuance of the bonds, or other expenditures eligible for reimbursement under Section
1.150-2(d)(3) of the Reimbursement Regulations.
3. This Declaration has been made not later than 60 days after payment of
any original expenditure to be subject to a reimbursement allocation with respect to the
proceeds of bonds, except for the following expenditures: (a) costs of issuance of bonds;
(b) costs in an amount not in excess of $100,000 or 5 percent of the proceeds of an issue;
or (c) “preliminary expenditures” up to an amount not in excess of 20 percent of the
aggregate issue price of the issue or issues that finance or are reasonably expected by the
City to finance the Projects for which the preliminary expenditures were incurred. The
term “preliminary expenditures” includes architectural, engineering, surveying, bond
issuance, and similar costs that are incurred prior to commencement of acquisition,
construction or rehabilitation of a project, other than land acquisition, site preparation, and
similar costs incident to commencement of construction.
4. This Declaration is an expression of the reasonable expectations of the
City based on the facts and circumstances known to the City as of the date hereof. The
anticipated original expenditures for the Projects and the principal amount of the bonds
described in paragraph 2 are consistent with the City’s budgetary and financial
circumstances. No sources other than proceeds of bonds to be issued by the City are,
or are reasonably expected to be, reserved, allocated on a long-term basis, or otherwise
set aside pursuant to the City’s budget or financial policies to pay such Projects’
expenditures.
5. This Declaration is intended to constitute a declaration of official intent for
purposes of the Reimbursement Regulations.
The foregoing resolution was moved by Councilmember ______________ and
seconded by Councilmember _______________.
The following voted in the affirmative: _________________________________________
The following voted against: ________________________________________________
Councilmember ________________________________ was absent.
Adopted by the City Council of the City of Richfield, Minnesota, this 25th day of April,
2017.
Pat Elliott, Mayor
ATTEST:
Elizabeth VanHoose, City Clerk
RESOLUTION NO.
DECLARING THE OFFICIAL INTENT OF THE CITY OF
RICHFIELD TO REIMBURSE CERTAIN EXPENDITURES
FROM THE PROCEEDS OF BONDS TO BE ISSUED BY
THE CITY WITH RESPECT TO THE 6-YEAR MILL AND
OVERLAY PROJECT
WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the
“Reimbursement Regulations”) providing that proceeds of tax-exempt bonds used to
reimburse prior expenditures will not be deemed spent unless certain requirements are
met; and
WHEREAS, the City of Richfield, Minnesota (the “City”) expects to incur certain
expenditures that may be financed temporarily from sources other than bonds, and
reimbursed from the proceeds of tax-exempt bonds; and
WHEREAS, the City has determined to make this declaration of official intent (the
“Declaration”) to reimburse certain costs from proceeds of bonds in accordance with the
Reimbursement Regulations.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF RICHFIELD, MINNESOTA AS FOLLOWS:
1. The City proposes to undertake the 6-Year Mill and Overlay Project within
the City (the “Project”).
2. The City reasonably expects to reimburse the expenditures made for certain
costs of the Project from the proceeds of bonds in an estimated maximum principal
amount of $5,800,000. All reimbursed expenditures will be capital expenditures, costs of
issuance of the bonds, or other expenditures eligible for reimbursement under Section
1.150-2(d)(3) of the Reimbursement Regulations.
3. This Declaration has been made not later than 60 days after payment of
any original expenditure to be subject to a reimbursement allocation with respect to the
proceeds of bonds, except for the following expenditures: (a) costs of issuance of bonds;
(b) costs in an amount not in excess of $100,000 or 5 percent of the proceeds of an issue;
or (c) “preliminary expenditures” up to an amount not in excess of 20 percent of the
aggregate issue price of the issue or issues that finance or are reasonably expected by the
City to finance the Projects for which the preliminary expenditures were incurred. The
term “preliminary expenditures” includes architectural, engineering, surveying, bond
issuance, and similar costs that are incurred prior to commencement of acquisition,
construction or rehabilitation of a project, other than land acquisition, site preparation, and
similar costs incident to commencement of construction.
4. This Declaration is an expression of the reasonable expectations of the
City based on the facts and circumstances known to the City as of the date hereof. The
anticipated original expenditures for the Projects and the principal amount of the bonds
described in paragraph 2 are consistent with the City’s budgetary and financial
circumstances. No sources other than proceeds of bonds to be issued by the City are,
or are reasonably expected to be, reserved, allocated on a long-term basis, or otherwise
set aside pursuant to the City’s budget or financial policies to pay such Projects’
expenditures.
5. This Declaration is intended to constitute a declaration of official intent for
purposes of the Reimbursement Regulations.
The foregoing resolution was moved by Councilmember
seconded by Councilmember .
and
The f ollowing voted in the aff irmative:
The f ollowing voted against:
Councilmember was absent.
Adopted by the City Council of the City of Richfield, Minnesota, this 25th day of April,
2017.
Pat Elliott, Mayor
ATTEST:
Elizabeth VanHoose, City Clerk
Five Year Street Reconstruction Plan (2017-2021)
77th Street
Underpass
66th Street
Reconstruction
6 Year Mill &
Overlay**
66th Street
Reconstruction
66th Street
Reconstruction
66th Street
Reconstruction
65th Street
Reconstruction
Penn Avenue
Reconstruction^^
Proposed Year 2017 2017 2018 2018 2019 2020 2020 2021
Street Reconstruction Bonds -$9,000,000$5,800,000$4,000,000$2,200,000$-$6,000,000$5,000,000$
Municipal State Aid -$1,500,000$-$1,000,000$1,500,000$1,850,000$1,150,000$-$
City Bond -$-$-$-$-$-$-$-$
City Utility Funds
Water -$-$-$-$-$-$-$-$
Sanitary -$-$-$-$-$-$-$-$
Storm -$-$-$-$-$-$-$-$
Grants
Federal -$9,632,000$-$-$-$-$-$-$
State 12,500,000$-$-$-$-$-$-$-$
County 1,500,000$25,900,000$-$-$-$-$-$8,000,000$
Bloomington -$274,000$-$-$-$-$-$-$
Other - unidentified 8,500,000$240,000$-$-$-$-$-$-$
Special Revenue -$-$-$-$-$-$-$-$
Special Assessment -$-$-$-$-$-$-$-$
Three Rivers Park District -$-$-$-$-$-$-$-$
Xcel Utility Rate Payers (CRFS)-$750,000$-$-$-$-$-$-$
CenterPoint Energy -$-$-$-$-$-$-$-$
HRA -$-$-$-$-$-$-$-$
TOTAL 22,500,000$47,296,000$5,800,000$5,000,000$3,700,000$1,850,000$7,150,000$13,000,000$
w/o M&O w/o Underpass 2017-2019
Total of Proposed Five Year Improvement 106,296,000$87,496,000$70,796,000$84,296,000$
Proposed Bonding 32,000,000$26,200,000$32,000,000$21,000,000$
% of Improvements Identifed for Bonding 30.1%29.9%45.2%24.9%
**Paid for with Franchise Fees
^^ Uncommitted, Requires Outside Funding
Projected Funding Sources
April 12, 2016
Five-Year Street Reconstruction Plan
2017 –2021 Projects
77th Street Underpass (2017)
Construction of a new 77th Street underpass of T.H. 77. The Underpass will be the final piece of the
77th Street corridor, designed as an arterial reliever to I-494 in order to reduce congestion. The
underpass will improve access to and from the Metro Transit South Garage, and provide direct
access for cars, bicyclists, pedestrians and transit users from Richfield to MSP and the Mall of
America.
66th Street (2017-2020)
Reconstruction of 66th Street (CR53) from Upton Avenue to Richfield Parkway.This project
includes reconstruction of failing pavement,replacement of City utilities, undergrounding of
parallel overhead utility lines, and improved bicycle and pedestrian accommodations.The
project also addresses safety and traffic flow concerns through the use of additional medians
and roundabouts.
Residential Mill &Overlay (2017-2020)
As part of a 6 year initiative to perform major maintenance to extend the life of the City’s
residential roads, originally constructed in the mid-70s, asphalt streets will receive a mill and
overlay.To date,approximately 15 miles of the City’s residential roads have been completed
with the remaining 85 miles to be resurfaced over the course of the project.The project also
includes catch basin and curb repairs, along with replacement of City utility manholes.The
bonding required to complete the project will be financed through the increase in Franchise
Fees effective April 2014.
65th Street Central (2020)
Reconstruction of 65th Street between Nicollet Avenue and 66th Street.This project will replace
the failing concrete road surface with new asphalt.The project will also replace City utilities.
Consistent with the City Complete Streets Policy, a public involvement process would be used
to determine the future design of the roadway.
Penn Avenue Reconstruction (2021)
Reconstruction of Penn Avenue from 62nd Street to 75th Street.This project includes
reconstruction of failing pavement,replacement of City utilities,and undergrounding of parallel
overhead utility lines. Consistent with the City and County Complete Streets Policies, a public
involvement process would be used to determine the future design of the roadway.
AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #8.
STAFF REPORT NO. 70
CIT Y COUNCIL ME E T ING
4/25/2017
RE P O RT P RE PA RE D B Y: E lizabeth F i nnegan, C ivil E ngineer
D E PA RTM E NT D IRE C TOR RE V IE W: K ristin A sher, P ublic Works D irector
4/19/2017
O TH E R D E PA RTM E NT RE V IE W: N/A
C ITY M A NA G E R RE V IE W: S teven L . D evich, C ity Manager
4/20/2017
I T E M F O R C O UNC I L C O NS I D E RAT IO N:
Consideration of the approval of a resolution dir ecting Xcel Energy to under ground overhead utilities
along 66th Street between Xerxes Avenue and 16th Avenue and suppor t the r ecovery of $1,325,000 to
Xcel Energy through a surcharge to the C ity’s r atepayers.
E X E C UT IV E S UM M ARY:
The City Counc il identified undergrounding of parallel private utilities within the City ’s right-of-way as a goal
for the major roadway s within Ric hfield. Xcel E nergy has provided the City with a c ost estimate that defines
the difference between reloc ating their facilities from overhead to underground to be $2,200,000 within the
project limits.
Hennepin County will pay $875,000 towards the cost of Xcel's undergrounding work, and the C ity will be
responsible for the remainder of the cost, estimated at $1,325,000. The City may pay Xcel Energy directly,
or Xcel Energy may utilize a special facility recovery mechanism. The mechanism would place a surcharge
on the ratepay ers. I n this instance, the surcharge would be $2.33 per month per meter for residential
customers. No provision has been made for the $1,325,000 estimated cost within the project budget
or the City’s 2017 General Fund budget.
RE C O M M E ND E D AC T IO N:
By Motion: Approve a resolution directing Xcel E nergy to underground overhead utilities along 66th
Street between X erxes Avenue and 16th Avenue and support the recover y of $1,325,000 to Xcel
Energy through a surcharge to the City’s ratepayers.
B AS IS O F RE C O M M E ND AT IO N:
A.H IS TOR IC AL C ON TEXT
Xcel E nergy undergrounding fees have previously been recovered through the use of a special
facility rec overy mec hanism, desc ribed in their tariff, which allows them to obtain funds through
the C ity’s ratepayers.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The C ity Council has identified undergrounding of public utilities in the right of way as a goal in
the C ity’s Comprehensive Plan (Goal 16 – 1997 C omprehensive Plan).
Xcel E nergy 's tariff requires they rec over the funds within a 36 month recovery period.
C.C R IT IC AL T IMIN G ISSU E S:
The C ity and County have directed X cel Energy to have their overhead facilities put underground
during the winter following each construc tion phase. The undergrounding from Xerxes Avenue to
35W and Portland Avenue to 16th Avenue will take place in the winter of 2017-2018, and the
undergrounding from 35W to Portland Avenue will take place in the winter of 2018-2019.
D.F IN AN C IAL IMPAC T:
The estimated c ost difference for the City of Richfield's share between reloc ating the poles and
plac ing Xc el’s fac ilities underground is $1,325,000. The estimated c ost is the highest possible
cost and will not exceed this amount. Only ac tual costs will be recovered.
I f there are other projec t funds available at the c lose of the project, they may be used to pay the
balanc e of the cost of undergrounding.
Xcel E nergy has the legal right to recover c osts via a surcharge to C ity ratepayers. The
$1,325,000 c ost can be recovered in 36 months time using the same rates as in the past
($2.33/month/residential meter).
E.L E GAL C ON S ID E R AT ION :
The C ity Attorney will be available to answer questions.
ALT E R N AT IV E R E C O MME N D AT IO N(S):
The C ity Council may c hoose not to adopt the resolution at this time and direct staff on how to proceed.
P R IN C IPAL PAR TIE S EXP E C T E D AT ME E T IN G:
None
AT TAC H ME N TS :
D escripti on Type
Resolution Resolution L etter
E ngineer's E stimate of Work B ackup Materi al
RESOLUTION NO.
RESOLUTION DIRECTING XCEL ENERGY TO UNDERGROUND OVERHEAD
UTILITIES ALONG 66 TH STREET BETWEEN XERXES AVENUE TO 16 th AVENUE
WHEREAS , the portion of the 2017-2019 roadway and boulevard improvements
will be completed on 66 th Street between Xerxes Avenue to 16 th Avenue to provide for
improved traffic safety; and
WHEREAS , the City seeks to improve safety along 66 th Street by directing Xcel
Energy to underground its electric utility facilities along the roadway; and
WHEREAS , Xcel Energy is expecting to recover the additional costs it will incur
because of the undergrounding of facilities by implementing a surcharge on customers
within the City; and
WHEREAS , the City is in receipt of an estimate for the requested
undergrounding; and
WHEREAS , on January 14, 2015, Xcel Energy was notified at the 66 th Street
Project Coordination Meeting their facilities must be relocated underground. The
relocation is anticipated to be completed no later than March 1, 2018, from Xerxes
Avenue to I35W and Portland Avenue to 16 th Avenue, and no later than March 1, 2019,
from I35W to Portland Avenue.
NOW, THEREFORE, BE IT RESOLVED by the City Council that:
1. Xcel Energy is hereby requested and directed to relocate its overhead
facilities underground along 66 th Street between Xerxes Avenue to 16 th
Avenue;
2. The City agrees that it will not oppose a surcharge on customers of Xcel
located within the City. The amount shall be Xcel’s necessary, actual, and
reasonably incurred costs of undergrounding less the costs Xcel would have
incurred through relocation of its overhead lines along the project site
because of the 66 th Street Reconstruction Project; and
3. The City does not waive its right to verify, by legal means available, that the
amount of the surcharge is necessary, actual, and a reasonable cost
incurred.
Adopted by the City Council of the City of Richfield, Minnesota this 25th day of
April, 2017.
Pat Elliott, Mayor
ATTEST:
Elizabeth VanHoose, City Clerk