10-26-92 agenda
CITY OF RICHFIELD, MINNESOTA
MONDAY, OCTOBER 26, 1992
REGULAR CITY COUNCIL MEETING
7:00 P.M.
COUNCIL CHAMBERS
AGENDA
INTRODUCTORY PROCEEDINGS
CALL TO ORDER
PLEDGE OF ALLEGIANCE
APPROVAL OF MINUTES OF REGULAR CITY COUNCIL MEETING OF OCTOBER
12, 1992
PRESENTATIONS
1. OPPORTUNITY FOR PERSONS TO ADDRESS THE COUNCIL ON ITEMS NOT
LISTED ON THE AGENDA
2. PRESENTATION OF PROCLAMATION DESIGNATING OCTOBER 26-30, 1992
ev DISABILITY EMPLOYMENT AND AWARENESS WEEK IN THE CITY OF
RICHFIELD
COUNCIL LETTER NO. 237
AGENDA APPROVAL
3. COUNCIL APPROVAL OF AGENDA
CONSENT CALENDAR
NOTE: CONSENT CALENDAR CONTAINS SEVERAL SEPARATE ITEMS WHICH ARE
ACTED UPON BY THE CITY COUNCIL IN ONE MOTION. ONCE THE CONSENT
CALENDAR HAS BEEN APPROVED, THE INDIVIDUAL ITEMS AND RECOMMENDED
ACTIONS HAVE ALSO BEEN APPROVED. NO FURTHER COUNCIL ACTION IS
NECESSARY. HOWEVER, ANY COUNCIL MEMBER MAY REQUEST THAT AN ITEM
BE REMOVED FROM THE CONSENT CALENDAR AND PLACED-ON THE REGULAR
AGENDA FOR COUNCIL DISCUSSION AND ACTION. ALL ITEMS LISTED ON
THE CONSENT CALENDAR ARE RECOMMENDED FOR APPROVAL.
4A. CONSIDERATION OF APPROVAL OF RESOLUTION AUTHORIZING
$2,160,000 REFUNDING BOND SALE OF GENERAL OBLIGATION STORM
SEWER REVENUE BONDS OF 1986 C.L. 238
B. CONSIDERATION OF APPROVAL OF RESOLUTION FOR REIMBURSEMENT OF
40 TUITION FOR TECHNICAL CERTIFICATION AND APPROVAL OF TUITION
REIMBURSEMENT AGREEMENT BETWEEN CITY OF RICHFIELD AND MNDOT`
C.L. 239
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C. CONSIDERATION OF APPROVAL OF AGREEMENT WITH CONCEPT
ENVIRONMENTAL SERVICES, INC. TO COMPLETE ASBESTOS ANALYSIS
FOR 77TH STREET RECONSTRUCTION PROJECT FOR AN AMOUNT NOT TO
EXCEED $13,100 C.L. 240
PUBLIC HEARING
5. CONSIDERATION OF OFF-SITE DIRECTIONAL SIGN PERMIT AT 100 WEST
78TH STREET FOR MOTEL 6
COUNCIL LETTER NO. 241
RESOLUTION
,6. CONSIDERATION OF RESOLUTION AUTHORIZING A STUDY TO BE
?/ CONDUCTED PERTAINING TO SECONDHAND GOODS STORES, PAWN SHOPS
AND SIMILAR USES AND PLACING MORATORIUM ON DEVELOPMENT OF
SUCH USES
COUNCIL LETTER NO. 242
PROPOSED ORDINANCE
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7. CONSIDERATION OF FIRST READING OF INTERIM ORDINANCE FOR
PURPOSE OF PROTECTING PLANNING PROCESS AND HEALTH, SAFETY AND
WELFARE OF CITY RESIDENTS; AND REGULATING AND RESTRICTING
DEVELOPMENT OF SECONDHAND GOODS STORES, PAWN SHOPS AND
SIMILAR USES WITHIN CITY
COUNCIL LETTER NO. 243
ADMINISTRATIVE REPORTS & OTHER BUSINESS
8. CONSIDERATION OF APPROVAL OF BYLAWS FOR SOUTH HENNEPIN
REGIONAL PLANNING AGENCY FOR HUMAN SERVICES
COUNCIL LETTER NO. 244
9. CONSIDERATION OF RESPONSE TO GOVERNOR'S SURVEY REGARDING
STATE OF MINNESOTA'S FINANCIAL OUTLOOK
COUNCIL LETTER NO. 245
10. CONSIDERATION OF APPROVAL OF MAYOR'S APPOINTMENT OF HOUSING
AND REDEVELOPMENT AUTHORITY COMMISSIONER
COUNCIL LETTER NO. 246
AIRPORT BUSINESS
11. AIRPORT STATUS REPORT
CORRESPONDENCE
12. LEGISLATIVE REPORT
COUNCIL CHOICE
13. COUNCIL DISCUSSION ITEMS
14. CLAIMS AND PAYROLLS
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.
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CITY OF RICHFIELD, MINNESOTA
Council Letter No. 246
Agenda October 26, 1992
Issue Statement:
Council confirmation of Mayor's appointment of Housing and
Redevelopment Authority Commissioner.
Background:
The term of HRA Commissioner Tom Harms will expire in October
1992. Commissioner Harms was appointed to the HRA in 1980 and
has served as Chair since his appointment.
Under State law, the Mayor appoints HRA Commissioners subject to
confirmation of the City Council. The Mayor has indicated he
will make an appointment to the HRA for a five year term at the
October 26, 1992 Council meeting.
Recommended Motion:
Confirm the Mayor's appointment of a Commission to the Housing
and Redevelopment Authority for a five year term which will
expire in October 1997.
Basis of Recommendation:
1. An appointment needs to be made for a term which expires in
October 1992.
• Alternative Recommendation:
1. Continue the appointment to a future Council meeting.
Discussion/Decision Mode:
This item has been scheduled for the October 26, 1992 Council
meeting so the appointment can be made to ensure a full
complement of members on the Housing and Redevelopment
Authority.
ly submitted,
J me D. Prosser
Ci Manager
JDP:cak
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CITY OF RICHFIELD, MINNESOTA
• Council Letter No. 244
Agenda October 26, 1992
Issue Statement:
Consideration of approval of bylaws for the South Hennepin
Regional Planning Agency for Human Services.
Background
The South Hennepin Regional Planning Agency for Human Services
has recently been re-established. It is appropriate for the
agency to establish new bylaws to govern their operation.
Attached is a set of bylaws which have been developed with the
City Managers from the participating cities of Bloomington, Eden
Prairie, Edina and Richfield. The City Managers have recommended
the bylaws be reviewed by each of the cities and approved by the
city councils.
Recommended Motion:
Review and approve the attached bylaws.
Basis of Recommendation:
The bylaws appear to properly provide for governing of the
agency.
Alternative Recommendation:
• The Council may decide to recommend alterations to the bylaws as
appropriate.
Discussion/Decision Mode:
This matter will be presented at the Council meeting of October
26.
Res ully submitted,
Ja D. Prosser
Cit' Manager
JDP:ds
Copy: Jeanne Massey, SHeRPA Director of Planning
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1 BYLAWS
2 of the
• 3 REGIONAL CITIZENS ADVISORY COMMISSION
4 SOUTH HENNEPIN REGIONAL PLANNING AGENCY
5 FOR HUMAN SERVICES
6 MISSION STATEMENTS
7 Citizens Advisory Commission Mission Statement
8 To work cooperatively with others towards creating an environment in which individuals
9 are empowered to identify their needs and use the resources of the community to their
10 benefit.
11 South Hennepin Regional Planning Agency Mission Statement
12 To assure that the human service needs of South Hennepin County residents are identified
13 through the use of research and planning, and where possible, met through the
14 coordination of service providers.
• 15 ARTICLE I.
16 Name
17 1.1) The name of this organization shall be the Regional Citizens Advisory Commission
18 (referred to herein as "the Commission") of the South Hennepin Regional Planning
19 Agency for Human Services (referred to herein as "the Agency").
20 References to the South Hennepin Regional Planning Agency
21 Joint and Cooperative Agreement
22 1.2) Sections 1.2 - 1.12, 2.1 - 2.8, 3.1, 3.5, 4.2, 5.1, 5.7, 6.1 and 6.3 of the bylaws are
23 stipulated in the Joint Powers Agreement of the South Hennepin Regional Planning
24 Agency. They shall be amended in accordance with amendments in the Joint
25 Powers Agreement. They cannot be amended through the powers of the bylaws of
26 the Commission. Each section includes a reference to the article and section
27 number in the Joint Powers Agreement (e.g. JPA V.1)
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1 Definitions
2 1.3) For the purposes of these bylaws, the terms defined in this article shall have the
03 meanings given to them. '(JPA II)
4 1.4) The participating Parties (Cities) are Bloomington, Eden Prairie, Edina, and
5 Richfield; and are collectively known as the South Hennepin Area.
6 1.5) The "South Hennepin Regional Planning Agency Joint and Cooperative
7 Agreement" is referred to herein as the "Joint Powers Agreement" or "JPA."
8 1.6) "South Hennepin Regional Planning Agency," or "Agency,"-means the organization
9 created pursuant to the Joint Powers Agreement, which is formally known as the
10 "South Hennepin Regional Planning Agency for Human Services."
11 1.7) "Board" means the Board of Directors of the Agency, and consists of the City
12 Managers of each Party.
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1.8) "City Council" means the governing body of a Party
1.9) "Party" (hereafter referred to as City) means a governmental unit which enters into
the Joint Powers Agreement.
1.10) "Human Services" includes but is not limited to services and facilities to deal with
and serve human needs.
1.11) "Regional Citizen Advisory Commission" means an advisory Commission which
consists of two representatives from a local advisory group for each City, one City
Council member from each City, and one human services staff person from each
city.
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1 1.12) "Local Advisory Group" means the Commissions, committees or other
2 organizations which advise individual Cities on issues relating to human services.
3 ARTICLE U.
4 Membership and Composition
5 2.1) Voting members of the Commission shall consist of three representatives of each
6 participating City appointed by that City's Council, consisting of two
7 representatives from local advisory groups and a City council member. (JPA V.2)
8 2.2) Non-voting (advisory-only) Commission members include one human services staff
9 person (the City Liaison) from each participating City as designated by the City
10 Manager. (JPA V.2)
11 2.3) The Commission shall annually notify the Cities of the names and occupations of
12 each of its members and make recommendations as to representation needs based
13 on the following criteria: (JPA VA)
?4 a.) Representation from the racial, ethnic, and cultural backgrounds of
15 residents of the South Hennepin area.
16 b.) Representation from health professionals, administrative officials,
17 senior citizens, young adults of voting age, law enforcement
18 personnel, members of the clergy, representatives of business and
19 labor, persons with a disability, and others with special concerns
20 related to human service activities.
21 2.4) Insurance (JPA VII,11).
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23 Appointment and Duration of Term
24 2.5} Appointments of voting members by City Councils shall be made in January of
25 each year and are encouraged to be made within 30 days of the occurrence of a
26 vacancy. (JPA V.2)
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1 2.6) Appointments of voting members shall be for a term of two years commencing on
2 February 1, or until their successor is named. (JPA V.2)
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3 2.7) Voting Commission members shall serve no more than three consecutive terms.
4 The term of the Commission member removed from the Commission by the
5 appointing city council shall terminate immediately upon such action by the
6 Council. (JPA, V.2 and VA)
7 2.8) Each City council shall adjust terms upon initial appointments and upon
8 subsequent appointments from time to time, as necessary, so that terms shall be
9 staggered to the extent possible. (JPA V.2)
10 2.9) Commission members who choose to resign shall tender letters of resignation to
11 their City council with a copy to the Senior Planner.
12 2.10) In the event any Commission member has three consecutive unexcused absences,
• 13 the City Council that appointed him/her will be notified.
14 ARTICLE III.
15 Meetings
16 3.1) The Commission shall hold its organizational meeting in February of each year,
17 and meet at least quarterly thereafter. A schedule of regular meetings shall be
18 approved at the organizational meeting. (JPA V.5)
19 3.2) The Commission will meet at least once annually with the Board of Directors.
20 3.3) Additional meetings of the Commission may be scheduled as necessary. Meetings
21 may be called by the Commission chair, or two members of the executive
22 committee, or by petition of three or more members of the Commission.
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1 3.4) Unless otherwise provided, regular meetings of the Commission shall be
• 2 determined by the Commission. All meetings of the Commission shall be
3 preceded by proper public notification and shall be conducted in accordance with
4 the state open meeting law, Minnesota Statutes, Section 471.705.
5 3.5) Each voting member of the Commission shall have one vote, and there is no proxy
6 voting. A quorum of the Commission shall consist of fifty percent (50%) plus one
7 of the eligible voting members, so long as there is at least one voting
8 representative of each City present at any regular or special meeting of the
9 Commission. A majority of the quorum is necessary to decide any matters that
10 come to a vote. One representative for each City must be present for each. vote to
11 decide matters that come to a vote. (JPA V.2)
12 3.6) Meetings of committees may be called at any time by the chair, or the lead
13 member of the committee. All meetings of the committees shall be preceded by
14 proper public notification and shall be conducted in accordance with the state open
• 15 meeting law, Minnesota Statutes, Section 471.705.
16 3.7) Notice of special meetings shall be given to each member at least three (3) days in
17 advance of the day of the meeting.
18 3.8) Agendas shall go out before each Commission meeting.
19 ARTICLE IV.
20 The Advisory Process
21 4.1) The Commission may prepare statements of policy which shall serve to provide the
22 framework for its advisory responsibility on all matters.
23 4.2) The Commission shall identify matters of common concern of the member Cities,
24 and make recommendations regarding the annual work plan and goals and
1025 objectives of the Agency. (JPA V.1)
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1 .4.3) The Commission may prepare and recommend processes and procedures in
102 addition to the bylaws, which shall serve to guide the Commission and Agency in
3 the pursuance of its duties.
4 ARTICLE V.
5 Officers
6 5.1) At the organizational meeting of each year, members of the Commission shall elect
7 from its membership a chair, a first vice chair, a second vice chair, and a secretary
8 In addition, it shall elect such other officers as it deems necessary. (JPA V.5)
9 5.2) The term of office of all elected officers of the Commission shall be for one (1)
10 year, or until their successors have been elected.. Such terms shall begin
11 immediately in the event of a vacancy, or. at the organizational meeting.
12 5.3) The chair of the Commission shall preside at all meetings of the executive
• 13 committee and Commission and perform all duties incident to this office. The
14 chair shall, subject to the approval of the Commission, appoint all Commission
15 committees and task forces and their chairs, and shall be an ex-officio member of
16 all committees. The chair shall be the chief spokesperson for the Commission.
17 5.4) The first vice chair shall be given such duties as may be assigned by the chair of
18 the Commission.
19 5.5) In the event of the absence of the chair, the first vice chair shall act as the chair;
20 or, in the event of the absence of both the chair and the first vice chair, the second
21 vice chair shall act as the chair; or, in the absence of the chair and both vice
22 chairs, the secretary shall act as the chair; or in the absence of the four named
23 officers, a voting member of the Commission shall be chosen to temporarily act as
24 chair.
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1 5.6) The Secretary of the Commission shall ensure that an accurate record of all the
02 proceedings of the Commission is maintained.
3 5.7) The Senior Planner and other staff of the Agency will provide staff services to the
4 Commission. The Senior Planner is hired by and reports to the Board of Directors.
5 (JPA VII.7)
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ARTICLE VI.
Executive Committee
6.1) The executive committee shall consist of the chair, two vice-chairs, a secretary,
and others as designated by the Commission. (JPA V.7)
6.2) The executive committee shall meet as needed.
6.3) In the interim between meetings of the Commission, the executive committee shall
exercise those powers conferred upon it from time to time by authorization of the
Commission. The executive committee may refer matters brought before it to any
committee. (JPA V.7)
ARTICLE VII
Nomination and Election of Officers
7.1) The chair shall appoint a nominating committee, which shall consist of no fewer
than four (4) persons (to represent each of the four Cities) and shall be subject to
confirmation by the Commission. The nominating committee shall meet no later
than twenty-one (21) days prior to the organizational meeting in February.
7.2) It shall be the duty of the nominating committee to place in nomination the office
of chair, first and second vice chairs, secretary and such other officers as
designated by the Commission.
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1 7.3) The names of the nominees placed in nomination by the nominating committee
162 shall be sent to Commission members ten (10) days prior to the organizational
3 meeting. Nominations also will be accepted from the floor at the organizational
4 meeting.
5 7.4) The election of officers requires a majority vote of the quorum. One representative
6 from each City must be present for the vote.
7 7.5) The names of the newly elected officers shall be communicated to the Board of
8 Directors and City Councils of each participating City.
9 ARTICLE VIII.
10 Committees
11 8.1) The Commission shall authorize and define the powers and duties of all
12 committees that it creates.
4?3 8.2) The chair, with the approval of the Commission at the organizational meeting after
14 the annual election, shall appoint the members of all commission committees and
15 their chairs, and shall be an ex officio member of all committees. Special
16 committees may be appointed at any time by the chair with the advice of the
17 executive committee.
18 8.3) Committees should include representation from each of the participating Cities.
19 ARTICLE IX.
20 Amendments
21 9.1) These bylaws may be amended, added to, or repealed by the Commission, subject
22 to review by the Board of Directors and approval by the City Councils.
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rY OF RICHFIELD, MINNESOTA
Council Letter No. 245.
Agenda October 26, 1992
Issue Statement:
Consideration of response to the Governor's
State of Minnesota's financial outlook.
Background:
Governor Carlson has requested that the Mayor complete a survey
regarding state finance problems. A draft letter has been
prepared based upon Mayor and City Council Members' direction.
That draft is provided for review and comment.
Recommended Motion:
Comment on the attached draft.
Manager regarding disposition
Provide direction
of comments.
Basis for Recommendation:
1. The City should provide
survey request.
The survey form provided by the Governor's office did not
provide an adequate opportunity to specifically address state
and city finance issues.
Alternative Recommendation:
The survey response is not due until December 1. Council Members
may wish to discuss this item at the Council meeting of October
26, may defer action to a later date, or provide individual
comments to the City Manager for a redraft and presentation to
the Council at a later date.
Discussion/Decision Mode:
This matter is presented for consideration
meeting of October 26.
Respectfully submitted,
James Prosser
City ager
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October 22, 1992
Governor Arne H. Carlson
Room 130
State Capitol
St. Paul, MN 55155
Dear Governor Carlson:
The City of Richfield greatly appreciates the
provide input directly to your office on the
of state finances. The information that you
City has been shared with all of our Council
DRAFT
opportunity to
very important issue
have provided to the
Members. We
apologize for not responding specifically to the survey form that
was mailed to us, however, this form did not provide the
opportunity for an objective and open response. A careful review
• of the information provided by your office and an understanding
of our financial situation has led us to the following
conclusions and recommendations:
? The City of Richfield agrees with the conclusion that the
problem with state finances is not lack of revenue, but the
spending level. However, we must at the same time conclude
that the problem with state spending levels is not that too
much money has been provided to cities. In fact, the City of
Richfield has seen its certified Local Government Aid payment
reduced from $4,433,285 in 1990 to $3,015,710 in 1992; a $1.4
million decrease in local government aid returned to our City
since 1989. Overall, city budgets within the state have shown
less of an increase than state budgets. The culprit is not
local government spending. It is state spending in other
areas.
? Cities are not receiving too much money from the state. In
virtually every state, cities receive a portion of state-
collected revenue. In Minnesota, the state has provided
cities a portion of state sales and income tax paid by our
residents. That money is returned to cities so that we can
provide a better balance of revenue necessary to fund local
government programs. These are programs to serve people in
our communities; services requested by our residents. We know
• that because we see these people on a daily basis in our
neighborhoods, in our businesses, in our churches and in our
schools. Compared to other levels of government, we are
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Governor Arne H. Carlson DRAFT
October 22, 1992
Page 2
closest to those who we serve. As a result of previous state
cuts, we have had to, on one hand, curtail some services, and
also, increase some of the costs for services. We have
already done our part to help the state balance their budget.
We think we've provided adequate support.
? The real increase in local government aid provided to cities
is projected to grow at 2.7%. A 13%.projected growth in local
aids and property tax relief is identified in your report to
us. However most of the growth in HACA represents the class
rate reductions for higher valued homes, rental property and
C/I property over a three year period. This is a tax shift
based upon a state policy. The cost of this should not be
borne by local governments.
? The state financial analysis provided to the cities obscures
the real problem with state spending. The problem is that the
overriding driver of increased cost of state government is the
state human service budget. We are not saying that these
services should not be funded. However, the state cannot
• afford to continue to provide these services by shifting a
greater burden onto local governments. A more permanent
solution for this budget problem must be found and must be in
place as soon as possible.
? It is essential that the Governor live uD to the promise that
the two cents in the local government trust fund be preserved
for local governments and their programs. The fund's payment
to this program should increase or decrease as the two cent
sales tax increases or decreases according to the economy.
This money should not be considered state money. It is the
money from our residents' sales tax which was promised to be
used to help for necessary services at the county and city
levels.
? Cities need state shared revenue to diversifv our revenue
base. The City of Richfield receives only 20% of property
taxes levied in our City. Other than this small share of the
property taxes, there are no other significant revenue sources
available for local general fund services that people need.
? State finance reports reveal that the first quarter fiscal
year 1993 revenues were $111 million or 7% above expectations.
Clearly, the state should not find a reason to decrease their,
commitment to provide a portion of this revenue to local
• governments.
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Governor Arne H. Carlson
October 22, 1992
Page 3
DRAFT
In summary, the state's financial problems are not the result of
city spending. They are the result of state spending. The state
faces very difficult choices regarding how to fund necessary
human service programs. But the answer is not to decrease
services or increase taxes at the local level. We have not been
the problem. We have already borne more than our share of the
cost to help balance the state budget. It is time that the state
faces the need to address their own problems and not pass the
buck. We look for your leadership to make sure that this
happens.
Sincerely,
Martin J. Kirsch
Mayor
William Bullock
Council Member
Ivan Ludeman
Council Member
Kristal Stokes Michael Sandahl
Council Member Council Member
:ds
Copy: Lynn Fleming, Richfield Sun Current
MINNESOTA DEPARTMENT OF REVENUE
LOCAL GOVERNMENT SERVICES DIVISION `-?
MAIL STATION 3340
SAINT PAUL, MINNESOTA 55146-3340
PHONE: (612) 296-5141
AID NOTICE JULY 18, 1991
FINANCE DIRECTOR
CITY HALL
RICHFIELD CITY OF
6700 PORTLAND AVE SO
RICHFIELD MN 55423
AUGUST 31 AND DECEMBER 15, 1991 AID PAYMENTS NOTICE
LOCAL GOVERNMENT AID - DECEMBER 15 S 1,548,923
EQUALIZATION AID - DECEMBER 15 $ 60
HOMESTEAD AND AGRICULTURAL CREDIT AID (HACA) - DECEMBER 15 S 841,077
DISPARITY REDUCTION AID - AUGUST 31 S 0
- DECEMBER 15 S 0
TOTAL AUGUST AND DECEMBER 1991 AID PAYMENTS $ 2,390,060
---------------------------------------------------------------------------------------
1992 LOCAL GOVERNMENT AID NOTICE
THE 1992 LOCAL GOVERNMENT AID FOR YOUR CITY IS S 3,015,710
• THE FOLLOWING IS A LISTING OF THE FACTORS USED IN THE CALCULATION OF YOUR CI TY'S
1992 LOCAL GOVERNMENT AID. SEE THE ENCLOSED LETTER FOR AN EXPLANATION OF TH ESE
FACTORS AND FOR ADDITIONAL INFORMATION CONCERNING THE DETERMINATION OF YOUR
CITY'S LOCAL GOVERNMENT AID.
1. 1991 LOCAL GOVERNMENT AID BEFORE ALL REDUCTIONS: * S 3,418,239
2. REDUCTION UNDER THE 1991 TAX LAW: S 397,247
3. 1992 LOCAL GOVERNMENT AID BEFORE REDUCTION FOR STATE COSTS
(1 - 2): ** $ 3,020,992
4. REDUCTION FOR STATE COSTS: $ 5,282
5. FIP:AL 1992 LOCAL GOVERNMENT AID (3 - 4): $ 3,015,710
* FROM LINE 3 OF THE CITY'S 1991 LOCAL GOVERNMENT AID NOTICE.
** CANNOT BE LESS THAN ZERO.
0990 LOCAL GOVERNMENT AID NOTICE
PRESENT LAW PROVISIONS AS OF JULY 25, 1989
FINANCE DIRECTOR
CITY HALL
RICHFIELD CITY OF
6700 PORTLAND AVE SO
RICHFIELD MN 55423
THE 1990 LOCAL GOVERNMENT AID FOR YOUR CITY IS $ 4,433,285
AUGUST 15, 1989
THE FOLLOWING IS A LISTING OF THE FACTORS USED IN THE CALCULATION OF YOUR CIT•Y'S
1990 LOCAL GOVERNMENT AID. SEE THE ENCLOSED LETTER FOR AN EXPLANATION OF THESE
FACT ORS ,AND FOR ;ADDITIONAL INFORMATION CONCERNING THE DETERMINATION OF YOUR
`CITY 'S LOCAL' GOVERNMENT AID.
1. 1989 LOCAL GOVERNMENT AID: S 4,042,543
2. PAYABLE 1989 PROPERTY TAX LEVY: S 5,270,682
3. CITY REVENUE (1 + Z): S 9,313,225
4. 1989 HOUSEHOLD ESTIMATE: 15,743
5. BASE 10 LOGARITHM OF HOUSEHOLD ESTIMATE: 4.197087
6. BASE REVENUE GUARANTEE ($160 + $150 X (LINE 5 - NUMERAL 1) ) $ 640
7. 1986 POPULATION ESTIMATE: 36,891
8. 1989 POPULATION ESTIMATE 34,876
9. REVENUE GUARANTEE INCREASE FOR FIRST CLASS AND NON-METRO CITIES: $
10. REVENUE GUARANTEE INCREASE FOR POPULATION DECLINE FROM
1986 - 1989 (6 X 15;.'):
$
96
01. TOTAL REVENUE GUARANTEE INCREASE (9 + 10): $ 96
2. CITY REVENUE GUARANTEE C (6 + 11) X 4 X 1041): $ 12,050,322
13. 1988 NET TAX CAPACITY: $ 27,479,822
14. PAYABLE 1989 FISCAL DISPARITIES DISTRIBUTION LEVY: $ 821,789
15. CITY TAX CAPACITY ((13 X 237.) + 14): $ 7,142,148
16. CITY INITIAL AID (12 - 15): $ 4,908,174
17. CITY EXPENDITURE/UNLIMITED AID RATIO (3/12): .77
18. AID PERCENTAGE INCREASE: 4.25
19. FORMULA AID INCREASE (3 X 18): $ 395,812
20. PAYABLE 1989 GROSS TAX EXCLUDING DISTRIBUTION LEVY: $ 4,448,893
21. MAXIMUM 1990 LOCAL GOVERNMENT AID INCREASE (LESSER OF 16 OR 20 X 20%)$ 889,779
Z2. 1990 LOCAL GOVERNMENT AID INCREASE (LESSER OF 19 OR 21): $ 395,812
23. 1990 LOCAL GOVERNMENT AID (1 + 22): $ 4,438,355
24. REDUCTION FOR STATE COSTS (23 X .0011424): $ 5,070
25. FINAL 1990 LOCAL GOVERNMENT AID (23 - 24): $ 4,433,285
MINNESOTA DEPARTMENT OF REVENUE
LOCAL GOVERNMENT SERVICES DIVISION
MAIL STATION 3340
SAINT PAUL, MINNESOTA 55146-3340
PHONE: (612) 296-5141
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CITY OF RICHFIELD, MINNESOTA
Council Letter No. 243
Agenda October 26, 1992
Issue Statement:
Consideration of an interim ordinance for the purpose of
protecting the planning process and the health, safety and
welfare of City residents and regulating and restricting the
development of secondhand goods stores, pawn shops and similar
uses within the City.
Background:
The City Council has just considered adoption of a resolution
authorizing a study and imposing a temporary moratorium on
licensing of secondhand goods stores, pawn shops and similar uses
within the City in order to provide an adequate opportunity for
the study to be completed. It is appropriate for the Council to
consider by ordinance imposing a moratorium for a period of one
year. The moratorium could be removed prior to that time by City
Council action.
Recommended Motion:
Adopt an interim ordinance restricting development of secondhand
goods stores, pawn shops and similar uses within the City for a
period of one year.
Basis for Recommendation:
1. Allow adequate opportunity for study of this issue.
2. Allow adequate opportunity for Planning Commission and City
Council consideration.
Alternative Recommendation:
1. The Council may decide not to institute a moratorium but to
continue with the study.
2. If the Council does not approve the resolution authorizing
the study then it would be inappropriate to consider this
ordinance.
Discussion/Decision Mode:
This matter will be presented
meeting of October 26.
for action at the City Council
Resp tfully submitted,
J m D. Prosser
C't' Manager
JDP:ds
'1-1
0 ORDINANCE NO.
INTERIM ORDINANCE FOR THE PURPOSE OF PROTECTING THE PLANNING
PROCESS AND THE HEALTH, SAFETY, AND WELFARE OF CITY RESIDENTS;
AND REGULATING AND RESTRICTING THE DEVELOPMENT OF SECONDHAND
GOODS, PAWNBROKER, AND SIMILAR USES WITHIN THE CITY
THE CITY COUNCIL OF THE CITY OF RICHFIELD ORDAINS:
Section 1. Background.
1.01. The City's zoning ordinance does not contemplate or
adequately address the classification of secondhand goods
stores, pawnshops, and other similar uses.
1.02. The City's zoning ordinance is unclear as to whether uses
such as secondhand goods stores, pawnshops, and rummage
shops should be classified as "retail stores," which are
permitted uses in a C-2 general commercial zoning
district, or whether a new classification should be
adopted for those uses.
1.03. In addition to the proper
uses, there are a number
use issues pertaining to
including the following:
zoning classification of such
of significant planning and land
the regulation of such uses,
1. The particular zoning districts in which such uses
should be allowed as either permitted or conditional
uses.
2. The concentration and density of such uses in the City
and its neighborhoods.
3. The effect of such uses on other uses in the
surrounding area.
1.04. There is a need for a study to be conducted so that the
City can adopt a set of comprehensive plans and land use
zoning regulations pertaining to such uses. Such a study
will address the land use and zoning issues, including
those referenced above. The study will also address the
City's licensing regulations regarding secondhand goods
stores and pawnshops and the extent to which the licensing
regulations require modifications in order to maintain
harmony and consistency between the zoning and licensing
regulations.
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1.05. There is a need for an interim ordinance to be adopted for
the purpose of protecting the planning process and the
health, safety, and welfare of the citizens of the City
and to ensure that the City and its citizens retain the
benefits of the City's comprehensive plan and zoning
ordinance until such a study has been completed. There is
a need to restrict such uses until such a study has been
completed and any modifications to the City's zoning and
land use regulations are accomplished.
1.06. The City Council has directed that such a study by
undertaken. .
1.07. Minnesota Statues, section 462.355, subd. 4 (Act) permits
the adoption of interim zoning ordinances during the
planning process.
Section 2. Planning and Zoning Study; Moratorium.
2.01. A study is authorized to be conducted by City staff to.
determine how uses such as secondhand goods stores,
pawnshops, and other similar uses should be regulated
within the City. The scope of the study should include,
but is not limited to, the following:
a. the particular zoning districts in which such uses
should be allowed as either permitted uses or
conditional uses;
b. the density and concentration of such uses;
c. the effect of such uses on other uses in the
surrounding area;
d. the need, if any, for modifications to the licensing
regulations regarding secondhand goods stores and
pawnshops.
2.02. Upon completion of the study, the matter is to be
considered by the Planning Commission for its review and
recommendation to the City Council.
2.03. A moratorium on the development of secondhand goods stores
and pawnshops is adopted pending completion of the study
and the adoption of any amendments to the City's zoning
ordinance. No license or building permit may be issued
for such uses or for the expansion of any existing use
during the moratorium period nor may any rezonings,
plattings or replattings, or land divisions or
consolidations be granted by the City for such uses during
the moratorium period. The moratorium period shall expire
on November 26, 1993 or such earlier date as may be
further adopted by ordinance. The moratorium period may
. be extended for a reasonable time by ordinance, as may be
necessary to complete the study and adopt any necessary
amendments to the City's zoning ordinance.
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Section 3. 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 th day of 1992.
Martin J. Kirsch Mayor
ATTEST:
Thomas P. Ferber City Clerk
•
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CITY OF RICHFIELD, MINNESOTA
Council Letter No.242
Agenda October 26, 1992
Issue Statement:
Consideration of a resolution authorizing a study to be conducted
pertaining to secondhand goods stores, pawn shops and similar
uses and placing a moratorium on development of such uses.
Background:
The City zoning ordinance does not contemplate or address the
classification of secondhand goods stores, pawn shops and other
similar uses. The ordinance is unclear as to whether such uses,
such as secondhand goods stores, pawn shops and rummage shops
should be classified as retail stores which are permitted uses in
C-2 general commercial zoning districts or whether a new
classification should be adopted for those uses.
The City has currently licensed three secondhand goods stores,
pawn shops and similar uses. However, a number of questions have
been.raised whether or not it is appropriate to continue to
permit classification of these types of stores as retail stores.
Recommended Motion:
Authorize a study to be conducted pertaining to secondhand goods
stores, pawn shops and similar uses and place a moratorium on
• development of such uses pending the outcome of the study and
analysis by the City Council.
Basis for Recommendation:
1. The study should be conducted to include an analysis of the
particular zoning districts in which such uses should be
allowed as either permitted or conditional uses.
2. The density and concentration of such uses.
3. The effect of such uses on other uses in surrounding areas
should be identified.
4. The need for modifications to the licensing regulations
should also be considered. This information should be
considered by the Planning Commission for review and
recommendation to the City Council.
5. A moratorium should be considered in order to provide an
opportunity for the study to be completed, analyzed and
reviewed by City Council.
6. A resolution authorizing a moratorium pending the adoption of
an ordinance is an appropriate mechanism to institute an
opportunity for analysis.
Alternative Recommendation:
1. The Council may decide not to authorize a study.
(I
2. The Council may decide not to authorize a moratorium.
Discussion/Decision Mode:
This matter is presented for action at the City Council meeting
on October 26.
Respe t ly submitted,
Jame Prosser
City pager
JDP:ds
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•
RESOLUTION NO.
RESOLUTION AUTHORIZING A STUDY TO BE CONDUCTED
PERTAINING TO SECONDHAND GOODS STORES, PAWNSHOPS,
AND SIMILAR USES AND PLACING A MORATORIUM
ON THE DEVELOPMENT OF SUCH USES
WHEREAS, the City's zoning ordinance does not contemplate or
adequately address the classification of secondhand goods stores,
pawnshops, and other similar uses; and
WHEREAS, the City's zoning ordinance is unclear as to whether
uses such as secondhand goods stores, pawnshops, and rummage
shops should be classified as "retail stores," which are
permitted uses in a C-2 general commercial zoning district,, or
whether a new classification should be adopted for those uses;
and
WHEREAS, the City Council deems it necessary for a study to
be conducted to determine how such uses should be regulated
within the City and deems it desirable to place a moratorium on
the development of such uses until the study has been completed
and any amendments to the comprehensive plan and zoning ordinance
are adopted.
• NOW THEREFORE, BE IT RESOLVED by the City Council of the City
of Richfield as follows:
1. The City staff is directed to conduct a study to
determine how uses such as secondhand goods stores, pawnshops,
and other similar uses should be regulated within the City. The
scope of the study should include, but is not limited to, the
following:
a. the particular zoning districts in which such uses
should be allowed as either permitted uses or
conditional uses;
b. the density and concentration of such uses;
c. the effect of such uses on other uses in the
surrounding area;
d. the need, if any, for modifications to the licensing
regulations regarding secondhand goods stores and
pawnshops, so as to maintain harmony and consistency
between the City's zoning and licensing regulations.
2. Upon completion of the study, the matter is to be
considered by the Planning Commission for its review and
. recommendation to the City Council.
()r3
??// 3. A moratorium on the development of secondhand goods
stores and pawnshops is adopted pending completion of the study
and the adoption of any amendments to the City's zoning
ordinance. No license or building permit may be issued for such
uses or for the expansion of any existing use during the
moratorium period nor may any rezonings, plattings or
replattings, or land divisions or consolidations be granted by
the City for such uses during the moratorium period. The
moratorium period created under this resolution shall expire
November 26, 1993 or such earlier date as may be further adopted
by resolution of the City Council or ordinance. The moratorium
period may be extended for a reasonable time by resolution of the
City Council or ordinance, as may be necessary to complete the
study and adopt any necessary amendments to the City's zoning
ordinance.
4. This resolution is effective immediately upon its
adoption.
Adopted by the City Council of the City of Richfield, Minnesota
this 26th day of October 1992.
Martin J. Kirsch Mayor
• ATTEST:
Thomas P. Ferber City Clerk
5
CITY OF RICHFIELD, MINNESOTA
Council Letter No.241
Agenda October 26, 1992
Issue Statement:
Public hearing on consideration of an off-site directional sign
permit at 100 West 78th Street.
Background:
Adams Outdoor Advertising has submitted an application for an
off-site directional sign permit at 100 West 78th Street. The
off-site directional sign is for Motel 6 at 7640 Cedar Avenue.
The City Code allows off-site directional signage provided
specific location, sign and impact conditions are met.
Recommended Motion:
Approve the off-site directional sign permit at 100 West 78th
Street.
Basis of Recommendation:
1. This proposal meets the requirements for issuance of an
off-site directional sign permit.
2. The State of Minnesota has reviewed and approved this
proposal.
• Alternative Recommendation:
The City Council could deny this request with a finding that the
proposal does not meet the requirements set forth for issuance of
the permit, and that the proposal would have an adverse impact on
the surrounding properties.
Discussion/Decision Mode:
A public hearing is scheduled at 7:00 p.m. on Monday, October 26,
1992. The hearing will be held in the City Council Chambers of
Richfield City Hall, 6700 Portland Avenue. Notice of public
hearing was mailed to property owners within 350 feet and
published in the Sun-Current.
Respe ly submitted,
James D Prosser
City Manager
JDP:ds
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CITY OF RICHFIELD, MINNESOTA
• Council Letter No. 240
Agenda October 26, 1992
Issue Statement:
Approval to enter into contract to complete asbestos analysis for
the 77th Street Reconstruction Project.
Background:
In accordance with federal regulations and as part of the
mitigation measures for construction impacts outlined in the 77th
Street Environmental Assessment, the City is required to conduct
asbestos investigations of approximately 50 houses and 4
businesses along 77th Street. The buildings will either be moved
off site or demolished. Most of the houses involved in this
investigation are single family, wood construction, built in the
19501s. The businesses are listed below:
Site A - Video Update/7645 Nicollet Avenue
Site B - Total Petroleum/7645 Lyndale Avenue
Site C - Don's Appliance & Adjacent Insurance Office/
7648 Lyndale Avenue
Site D - Office Building/7701 Harriet Avenue
The scope of the work includes:
. 1. Field investigation and testing of houses for asbestos
which will affect the method of demolition and/or
disposal of demolition debris.
2. Provide a written report discussing the findings of the
investigation, including recommendations.
3. All work shall meet applicable standards, including but
not limited to:
- Minnesota Pollution Control Agency;
- Minnesota Department of Health;
OSHA;
- Environmental Protection Agency;
- Minnesota Department of Transportation; and
- Federal Highway Administration.
Four firms submitted proposals to complete the work. The firms
and their estimated total costs are listed below.
Concept Environmental Services, Inc. $13,100
AAC, Inc. $14,630
Applied Environmental Sciences, Inc. $18,282
Braun Intertec $34,800
• Before giving Notice to Proceed, staff will determine whether
this action would be eligible for federal reimbursement as part
of the reconstruction.
y c-
• Recommended Motion:
Authorize an agreement with Concept Environmental Services, Inc.,
for the amount not to exceed $13,100, in order to complete the
asbestos investigations on approximately 50 houses and 4
businesses along 77th Street.
Basis of Recommendation:
1. Industry standards dictate performing three sample tests.
Concept Environmental Services, Inc. submitted the lowest
price offering for all three tests.
2. Concept Environmental Services, Inc. quoted a not-to-exceed
price, meaning that the project may not require the entire
amount quoted. In addition, the quote listed includes a test
on the City garage which has already completed an asbestos
audit.
3. Concept Environmental Services, Inc. has completed similar
work for the City of Richfield in the past on two of the
houses along 77th Street.
Alternative Recommendation:
1. Enter into contract with either of the other three firms that
submitted proposals.
2. Reject all proposals and solicit proposals from other firms.
Discussion/Decision Mode:
The Council should consider this agreement at their October 26,
1992 meeting. The houses and businesses which need to be
investigated have been identified as of the bid opening for all
the houses which were for sale. This project should be completed
promptly in order to keep the 77th Street reconstruction on
schedule. The building removal deadline is February 1, 1993.
Respectfull submitted,
James D. rosser
City Manager
JDP:ds
CITY OF RICHFIELD, MINNESOTA
Council Letter No. 239
Agenda October 26, 1992
• Issue Statement:
Approval of a resolution for reimbursement of tuition for technical
certification; and approval of tuition reimbursement agreement.
Background:
The Minnesota Department of Transportation (MnDOT) State Aid for
Local Transportation Division requires that certified technicians,
including construction inspectors and field testers, be used on all
state aid work beginning on January 1, 1994. The Division of State
Aid has developed a Technical Certification Program, and have
determined that the tuition cost for the certification classes is
eligible for reimbursement from the administrative account for any
class taken after November 1, 1992 and before July 31, 1995. The
administrative account is funded by the Municipal State Aid (MSA)
gas tax prior to allocation to the cities. Each local agency will
be limited to a total reimbursement of $5,000 toward obtaining
technical certification.
Because this program is new, there are not many certified
technicians in the field. The Community Services Department will
make arrangements for our Engineering Supervisor and Engineering
Technician to obtain the required certification.
Recommended Motion:
Approve the attached resolution for reimbursement of tuition for
• technical certification, and approve the tuition reimbursement
agreement between the City of Richfield and MnDOT.
Basis for Recommendation:
1. MnDOT requires certified technicians on all state aid work
beginning January 1, 1994.
2. Tuition for certification classes are eligible for state aid
reimbursement.
3. MnDOT requires a Council resolution for participation in the
program.
Alternative Recommendation:
Council may decide not to participate in this program. However,
that will mean the cost of certifying City inspection staff will
have to be paid by the City without reimbursement by the local
state aid office or that inspections will have to be performed by
engineering consultants.
Discussion/Decision Mode:
Approval is requested at the October 26, 1992 Council meeting.
RespeptX
ly submitted,
James Prosser
City ager
JDP:ds
46-I
RESOLUTION NO.
RESOLUTION APPROVING AN AGREEMENT WITH
THE MINNESOTA DEPARTMENT OF TRANSPORTATION (MnDOT)
TO PARTICIPATE IN A TUITION REIMBURSEMENT PROGRAM
IN ORDER TO OBTAIN TECHNICAL CERTIFICATION
FOR CITY OF RICHFIELD STAFF WORKING ON STATE AID PROJECTS
AFTER JANUARY 1, 1994.
WHEREAS, the Minnesota Department of Transportation (MnDOT)
State Aid for Local Transportation Division is requiring
certified technicians be used on all state aid work beginning on
January 1, 1994; and
WHEREAS, MnDOT has developed a technical certification
program in order to help local agencies attain this
certification; and
WHEREAS, the Office of State Aid has determined that tuition
costs up to $5,000 for this program are eligible for
reimbursement; and
WHEREAS, the City of Richfield desires to participate in
this program;
• NOW, THEREFORE,
Richfield does hereby
City of Richfield and
reimbursement program
Engineer and the City
agreement.
BE IT RESOLVED that the City Council of
approve the attached agreement between the
MnDOT for participation in a tuition
for a certified technician, and the City
Clerk are directed to execute the attached
Passed by the City Council of the City of Richfield this 26th day
of October, 1992.
Martin J. Kirsch Mayor
ATTEST:
Thomas P. Ferber City Clerk
0
46 C;L
MINNESOTA DEPARTMENT OF TRANSPORTATION AGREEMENT
11-1d . Tr
439f?ga I y? I Sz-30
TYPE OF TRANSACTION
3? ?d9jUl
S,-o i ` 1 01
7,99
.SEND
Entered by
Entered by
.La
Vendor name RICHFIELD
Address 6700 Portland Avenue
Richfield, MN 55423
THIS AGREEMENT is made by and between the State of Minnesota, acting by and
through the Commissioner of the Minnesota De artment of Trans ortation
(hereinafter referred to as "MN/DOT11) and RIRFIELD (hereinafter referred to
and "Recipient").
WHEREAS the State is authorized to administer the State Aid Administrative
Account pursuant to MN Statute 162.06, Subd. 2;
WHEREAS the Division of State Aid requires all personnel working on State
Aid work be certified;
WHEREAS the certification of technicians will ensure consistent inspection
and high quality roads and bridges;
NOW, THEREFORE, in consideration of the mutual covenants and agreements as
hereinafter set forth, the parties to this Agreement mutually agree as
follows:
I. Term of Agreement
This agreement shall be effective upon such date as it is executed as
to encumbrance by the Commissioner of Finance, and shall remain in
effect until all obli ations set forth in this agreement have been
satisfactorily fulfil?ed or December 31, 1995, whichever occurs first,
which time all requests for reimbursement must be received in
b the
Sate Aid Office.
II. Conditions of Agreement
All. personnel working on State Aid work, .including but not limited to
construction inspectors, and field testers, must e certified through
the Technical Certification Program on all work beginning on or after
January 1, 1994.
III. Reimbursement by MN/DOT
MN/DOT aggrees to reimburse the Recipient an amount not to exceed more
than $5000.00 total tuition costs incurred for personnel working on
State Aid work for the successful completion of classes taken be ween
November 1, 1992, and July 31, 1995. Recipient agrees to pay all costs
not included in, or which exceed, said amount.
A: Recipient must submit a resolution from the County Board/City
Council approving the agreement.
B: Request for reimbursement must be submitted on Recipient's
• letterhead indicating each participant's name, title of each course
taken, and amount to be reimbursed for each course..
C: Recipient must submit a copy of payment voucher or a copy of the
canceled check as proof of payment for each course.
q6-3
D: Request must be submitted to:
Assistant State Aid Engineer
De t. of. Transportation, Room 420
39 John Ireland Blvd.
St. Paul, MN 55155
Audits
IV. All records, books, documents, and accountingq rocedures and practices
relevant to this agreement are subject to audit and examiniation by
MN/DOT and either ?he Legislative Auditor or State Auditor as
appropriate.
Termination of this Agreement
V. MN/DOT may withhold payment or terminate this Agreement at any time if
the Recipient does not comply with the provisions of this Agreement.
General Provisions
VI. The Recipient agrees to indemnify and save and hold the State, its
agents and employees harmless from an and all claims or causes of
action arising from the performance oY this agreement by Recipient's
participants or employees. This clause shall not be construes to bar
any legal remedies Recipient or its participant's have for the State's
failure to fulfill it's obligation pursuant to this agreement.
VII. Any amendments to this areement shall be in writing and shall be
approved by MN/DOT and tRe Recipient.
APPROVED:
RECIPIENT:
BY:
City/County Engineer
is DATE:
BY:
City Clerk/County Auditor
DATE:
DEPT. OF ADMINISTRATION
BY:
COMMISSIONER OF TRANSPORTATION:
BY:
DATE:
ATTORNEY GENERAL:
BY:
DATE:
DEPT. OF FINANCE
BY:
DATE:
DATE:
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CITY OF RICHFIELD, MINNESOTA
Council Letter No. 238
Agenda October 26, 1992
Issue Statement:
Adoption of a resolution authorizing $2,160,000 refunding bond
sale of General Obligation Storm Sewer Revenue Bonds of 1986.
Background:
In 1986, the City of Richfield issued $2,525,000 General
Obligation Storm Sewer Revenue Bonds to finance the construction
of certain storm sewer related improvements in the City. These
projects were part of a larger comprehensive review of storm
flooding areas in Richfield.
The bonds were issued in conjunction with the establishment of
the storm sewer utility fund. Fees collected through the storm
sewer utility are used to pay the debt service of the bond issue
as well as for annual maintenance of the system and some
additional construction.
The 1986 bond issue was sold at a 6.51% net interest rate. With
current interest rates at a 14 year low, staff requested the
Evensen Dodge firm to review this bond issue to ascertain if
refunding was feasible.
On the basis of their review, it appears that the current
interest rate climate would make it feasible to refund the bond
issue this November. It is projected that at current interest
rates the refunding would save the City roughly $112,500, with a
present value of approximately $81,500. This savings projection
is less than the analysis done in September because of a recent
change in bond rates.
At the October 5, 1992 City Council Study Session, City staff
presented information concerning the refunding bond issue. The
timetable presented at that discussion included formal
authorization for the refunding sale at a City Council meeting in
October with the bond sale taking place some time in November or
early December. This action requested by resolution in this
Council Letter is in keeping with this timeframe.
Within the past several days, the bond market
of adjustments upward. Of course each upward
the savings to be gained from the refunding.
the refunding still appears feasible, however
adjustments in the next several weeks will dii
refunding bond sale is to proceed.
has made a number
adjustment erodes
As of this writing,
bond market
--tate whether the
The City's financial consultants will carefully watch the bond
market on a daily basis in order to offer the sale at the precise
. time which will afford the savings targeted. The attached
resolution provides for the authority to structure a flexible
sale date in the future with proper notice. If the bond market
q9-1
does not provide an interest rate which will achieve a savings of
• roughly $100,000 or more, the sale will not be consummated. This
method of selling a bond issue on a flexible time schedule has
been utilized by the City in the past with good success.
Finally, it should also be noted that the exact amount of the
refunding issue will change slightly with the changes in the bond
market. The exact figure, now estimated at $2,160,000, will be
,finally determined on the day of the negotiated sale.
Recommended Motion:
Adopt the attached resolution authorizing the City's financial
consultant, Evensen Dodge, to obtain quotations for the sale of
$2,160,000 refunding bonds on a flexible time schedule.
Basis of Recommendation:
1. An analysis of this bond issue reflects an estimated savings
of approximately $112,000 if the bonds were refunded in early
December.
2. Interest rates are at the lowest level in well over a decade.
3. If the City is to take advantage of the low interest rates to
refund this bond issue, authorization to proceed with the
refunding sale is needed now.
• 4. The City Council reviewed the specific data concerning this
refunding at the October 5, 1992 Study Session.
5. If the interest rates change before the sale that make the
refunding sale financially undesirable, the refunding process
will be terminated without a sale. The bond pre-sale
analysis targets savings of $100,000-$125,000 to complete the
refunding sale.
Alternate Recommendation:
1. Disregard the current refunding option, continue to retire
the bonded debt as presently scheduled, and forego the
projected savings.
Discussion/Decision Mode:
A resolution authorizing the refunding bond sale must be
considered at the October 26, 1992 Council meeting in order to
facilitate a sale in early December. This timing may be critical
if the City is to take advantage of current interest rates.
• g
JDP:cak
Attachment
Re fully submitted,
Ja a D. Prosser
Cit Manager er
RESOLUTION NO.
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF $2,160,000 GENERAL OBLIGATION STORM
SEWER REVENUE REFUNDING BONDS, SERIES 1992A
BE IT RESOLVED by the City Council of the City of Richfield,
Hennepin County, Minnesota (City) as follows:
1. It is hereby determined that:
(a) the City is authorized by Minnesota Statutes,
Chapter 465 (Act) and Section 475.67, Subdivision 3, of the
Act to issue and sell its general obligation bonds to
refund obligations and the interest thereon before the due
date of the obligations, if consistent with covenants made
with the holders thereof, when determined by the City
Council to be necessary or desirable for the reduction of
debt service cost to the City or for the extension or
adjustment of maturities in relation to the resources
available for their payment;
(b) subdivision 4 of the Act permits the sale of
refunding obligations during the six month period prior to
the date on which the obligations to be refunded may be
called for redemption;
• (c) it is necessary and desirable to reduce debt
service costs that the City issue $2,160,000 General
Obligation Storm Sewer Revenue Refunding Bonds,-Series
1992A (Bonds) to refund certain outstanding general
obligations of the City;
(d) the outstanding bonds to be refunded (Refunded
Bonds) consist of the $2,525,000 General Obligation Storm
Sewer Revenue Bonds, Series 1986A, dated March 1, 1986, of
which $2,090,000 in principal amount is currently callable
on February 1, 1993.
2. To provide moneys to refund the Refunded Bonds, the
City will issue and sell Bonds in the amount of $2,138,400. To
provide in part the additional interest required to market the
Bonds at this time, additional Bonds will be issued in the amount
of $21,600. The excess of the purchase price of the Bonds over
the sum of $2,138,400 will be credited to the debt service fund
for the Bonds for the purpose of paying interest first coming due
on the additional Bonds. The Bonds will be issued, sold and
delivered in accordance with the terms of the following Official
Terms of Proposal:
$2,160,000 General Obligation Storm
. Sewer Revenue Refunding Bonds, Series 1992A
City of Richfield
Hennepin County, Minnesota
4a 3
NOTICE IS HEREBY GIVEN that sealed bids for the purchase of
the above bonds will be received in the offices of the Finance
Director in Richfield, Minnesota at the time and date specified
in a notice distributed by Evensen Dodge, Inc., which notice
will be given at least 48 hours before the time set for
receiving bids.
Purpose and Security
The purpose of the bonds is to provide funds for refunding
the City's $2,525,000 General Obligation Storm Sewer Revenue
Bonds, Series 1986A, dated March 1, 1986. The bonds will be
general obligations of the City for which its full faith, credit
and taxing powers are pledged, together with net revenues of the
storm sewer, sanitary sewer and water system of the City.
Date and Maturities
The bonds will be issued in fully registered form, will be
dated December 1, 1992, will be in denominations of integral
multiples of $5,000 each and will mature on February 1, in the
years and amounts as follows:
Year Amount Year Amount
• 1994 $ 85,000 2001 $155,000
1995 110,000 2002 165,000
1996 115,000 2003 170,000
1997 125,000 2004 185,000
1998 130,000 2005 200,000
1999 135,000 2006 210,000
2000 145,000 2007 230,000
Redemption
The City may elect on February 1, 2001 or on any interest
payment date thereafter to redeem and prepay bonds of this issue
maturing on or after February 1, 2002 at a price of par plus
accrued interest to date of redemption. Prepayment may be in
whole or in part and will be in inverse order of maturities and
by lot within maturities.
Interest
Interest on the bonds will be payable on August 1, 1993, and
semiannually thereafter on each February 1 and August 1. Bonds
maturing on the same date must bear interest from date of issue
until paid at a single, uniform rate, not exceeding the rate
specified for bonds of any subsequent maturity. Each rate must
be in an integral multiple of 1/20 or 1/8 of 1%.
0 Registrar
0_4
The Bonds will be issued as book entry only securities
.through The Depository Trust Company. The City Finance Director
will be the Registrar/Paying Agent.
CUSIP Numbers
The City assumes no obligation for the assignment or
printing of CUSIP numbers on the bonds or for the correctness of
any numbers printed thereon, but will permit such numbers to be
assigned and printed at the expense of the purchaser, if the
purchaser waives any extension of the time of delivery caused
thereby.
Delivery
Within 40 days after sale, the City will furnish and deliver
to the office of the purchaser or, at its option, will deposit
with a bank in the United States selected by it and approved by
the City as its agent to permit examination by and to deliver to
the purchaser, the printed and executed bonds, the unqualified
opinion thereon of bond counsel, and a certificate stating that
no litigation in any manner questioning their validity is then
threatened or pending. The charge of the delivery agent must be
paid by the purchaser but all other costs will be paid by the
City. The purchase price must be paid upon deliver of the bonds
in funds available for expenditure by the City on the day of
• payment.
Legal Opinion
An unqualified legal opinion on the bonds will be furnished
by Holmes & Graven, Chartered, Minneapolis, Minnesota. The
legal opinion will be printed on the bonds at the request of the
purchaser. The legal opinion will state that the bonds are
valid and binding general obligations of the City, and that the
City is required by law to levy taxes for the principal and
interest thereon as the same become due without limit as to rate
or amount.
Official Statement
The City has authorized the preparation of an Official
Statement containing pertinent information relative to the
Bonds, and said Official Statement will serve as a nearly-final
Official Statement as required by Rule 15c2-12 of the Securities
and Exchange Commission. The Official Statement, when further
supplemented by an addendum or addenda specifying the interest
rates of the Bonds, together with any other information required
by law, shall constitute a Final Official Statement of the City
with respect to the Bonds, as that term is defined in Rule 15c2-
12. By awarding the Bonds to any underwriter or underwriting
• syndicate submitting an official Bid Form therefor, the City
agrees that, no more than seven business days after the date of
such award, it shall provide without cost to the senior managing
yA-5
underwriter of the syndicate to which the Bonds are awarded 25
copies of the Official Statement and the addenda described
above. The City designates the senior managing underwriter of
the syndicate to which the Bonds are awarded as its agent for
purposes of distributing copies of the Final Official Statement
to each Participating Underwriter. Any underwriter executing
and delivering an Official Bid form with respect to the Bonds
agrees thereby that if its bid is accepted by the City (i) it
shall accept such designation and (ii) it shall enter into a
contractual relationship with all Participating Underwriters of
the Bonds for purposes ofassuring the receipt by each such
Participating Underwriter of the Final Official Statement.
Type of Bid - Amount
A sealed bid shall be for not less than $2,138,400 and
accrued interest on the total principal amount of the Bonds.
Bids shall be accompanied by the Good Faith Deposit ("Deposit")
in the form of a certified or cashier's check or a Financial
Surety Bona in the amount of $43,200, payable to the order of
the City. If a check is used, it must accompany each bid. If a
Financial Surety Bond is use, it must be from an insurance
company licensed to issue such a bond in the State of Minnesota,
and preapproved by the City. Such bond must be submitted to
Evensen Dodge, Inc., prior to the opening of the bids. The
Financial Surety Bond must identify each underwriter whose
Deposit is guaranteed by such Financial Surety Bond. If the
Bonds are awarded to an underwriter using a Financial Surety
Bond, then that purchaser is required to submit its Deposit to
Evensen Dodge, Inc., in the form of a certified or cashier's
check or wire transfer as instructed by Evensen Dodge, Inc. not
later than 3:30 p.m., Central Time, on the next business day
following the award. If such Deposit is not received by that
time, the Financial Surety Bond may be drawn by the City to
satisfy the Deposit requirement. The City will deposit the
check of the purchaser, the amount of which will be deducted at
settlement and no interest will accrue to the purchaser. In the
event the purchaser fails to comply with the accepted bid, said
amount will be retained by the City. No bid can be withdrawn or
amended after the time set for receiving proposals unless the
meeting of the City scheduled for award of the Bonds is
adjourned, recessed, or continued to another date without award
of the Bonds having been made. Rates shall be in integral
multiples of 5/100 or 1/8 of 1%. Rates must be in ascending
order. Bonds of the same maturity shall bear a single rate from
the date of the Bonds to the date of maturity. No conditional
proposals will be accepted.
BY ORDER OF THE CITY COUNCIL
/s/ Thomas P. Ferber
• City Clerk
Dated: 1992.
q4- (0
3. Evensen Dodge, Inc. is authorized and directed to
negotiate the Bonds in accordance with the foregoing Terms of
Proposal. The City Council will meet upon proper notice to
consider bids on the Bonds and take any other appropriate action
with respect to the Bonds.
Adopted by the City Council of the City of Richfield, Minnesota
this 26th day of October 1992.
ATTEST:
Thomas P. Ferber City Clerk
0
Martin J. Kirsch Mayor
a
CITY OF RICHFIELD, MINNESOTA
Council Letter No. 237
Agenda October 26, 1992
Issue Statement:
Proclaim October 26-30, 1992 as Disability Employment and
Awareness Week in the City of Richfield.
Background:
The Governor of the State of Minnesota proclaimed the month of
October 1992 as Disability Employment and Awareness Month in
recognition of the contributions made by disabled individuals in
the state and communities in which they live. Throughout the
month of October, disability agencies across the state will hold
public awareness events to celebrate the capabilities and
achievements of Minnesotans with disabilities. Many persons with
disabilities are living independently in Minnesota and are
participating in educational, social, religious, recreational and
community activities. The Americans with Disabilities Act and
the Minnesota Human Rights Act require employers to make
reasonable accommodation to the known disability of a qualified
applicant or employee.
Recommended Motion:
Approve the attached proclamation declaring October 26-30, 1992
as Disability Employment and Awareness Week for the City of
Richfield.
Basis of Recommendation:
The City of Richfield supports individuals with disabilities
through their equal employment standards, recreation programs and
building codes regarding physical accessibility.
Alternative Recommendation:
1. Do not declare any Disability Employment and Awareness Week
in Richfield.
2. Declare some other week as Disability Employment and
Awareness Week in Richfield.
Discussion/Decision Mode:
This item is scheduled for the October 26 City Council meeting.
A member of the Human Services Commission will be present to
receive the proclamation.
Respec lly submitted,
James Prosser
City Manager
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