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3-26-90 agenda7oe CITY OF RICHFIELD, MINNESOTA Council Letter Number 90 Agenda March 26, 1990 • Issue Statement: Appointment to the 1990 Board of Equalization (Board of Review). Background: City Charter provides that the Local Board of Equalization shall consist of all of the City Council members and two Richfield residents experienced in real estate matters. The purpose of the Board is to hear appeals from the property owners concerning their property taxes. Mr. Emond, 6325 Russell Avenue, has indicated his willingness to once again serve as a residential representative to the Board. He has been an independent property appraiser for over 15 years and has served on the Richfield Board of Review since 1983.. His primary work involves conducting property appraisals for financial institutions. He is also experienced in building construction and held a real estate license. Mr. Emond has been a Richfield resident for nearly thirty years and his previous input on the Richfield Board of Equalization has been extremely valuable as determinations and appeals presented by Richfield citizens were considered. The second Richfield resident under consideration for appointment for the Board in 1990 is Cory Bultema, 6532 Oliver Avenue South, Apt. 6. Mr. Bultema is an independent property appraiser and has worked in that field for just over three years. He holds a Bachelor's degree in Administration and a Master's degree in Community and Regional Planning. He is also a member of the American Institute of Real Estate Appraisers. Mr. Bultema's specific experience from 1987 to present is heavily weighted in the area of commercial and industrial types of appraisals. This is in contrast to Mr. Emond who specializes in the area of residential properties. Mr. Bultema has been a resident of Richfield for just over two years. It is recommended that the compensation for resident members be set at $37.00 per session or $15.00 per hour per session, whichever is greater. This rate represents no increase over the current rate, which was set in 1988. Recommended Motion: Approve the attached resolution confirming the appointment of Mr. Emond and Mr. Bultema to the 1990 Board of Equalization, at the proposed level of compensation stated herein. Basis of Recommendation: 1. Both Mr. Emond and Mr. Bultema are very knowledgeable and experienced in the areas of real estate appraisals. 2. Mr. Emond has served on the Richfield Board of ;Equalization • in the past and has done a very good job in that capacity. 3. Mr. Bultema has served on the Advisory Committee and shows a strong interest in the community. ??/_ / 4. It is required by City Charter that there be two resident representatives on the Board of Equalization who are knowledgeable in real estate matters. Alternative Recommendations 1. The City Council could select other qualified individuals as expert resident representatives of the Board of Equalization, in place of either Mr. Emond or Mr. Bultema or both. Discussion/Decision Mode: It is requested that the City Council set the appointment of Mr. Emond and Mr. Bultema at the City Council meeting of March 26, 1990. The Board of Equalization will meet at 7:00 p.m. Monday, April 30, 1990. The appointment at the City Council meeting of March 26, 1990 ensures that the City staff has adequate time to establish appointments to the Board. Re lly submitted, Ja s D. Prosser Ci Manager I* JDP:ff 0 RESOLUTION NO. A RESOLUTION CONFIRMING CITY MANAGER'S APPOINTMENT OF TWO RESIDENT MEMBERS TO THE BOARD OF EQUALIZATION BE IT RESOLVED, that the City Council of the City of Richfield, Minnesota hereby approves the City Manager's appointment of Mr. Lawrence Emond and Mr. Cory Bultema as 1990 resident members on the Board of Equalization as provided in Chapter 7 of the City Charter. BE IT FURTHER RESOLVED, that compensation for the two resident members of the Board of Equalization be set at a minimum of $37.00 per session of the Board, or $15.00 per hour per session of the Board, whichever is greater. Passed by the City Council this 26th day of March, 1990. Steven J. Quam Mayor ATTEST: 0 Thomas P. Ferber City Clerk 1'1 l_J CITY OF RICHFIELD, MINNESOTA Council Letter No. 89 Agenda March 26, 1990 Issue Statement: Request for the City Council to undertake a bond referendum of $10.5 million for improvements to the city's park system. Background: The update •of the City's 1969 Master Park Plan was adopted by the City Council in October of 1989. Funding for improvements to the city's park and recreation system was discussed in public meetings and with the Community Services Advisory Commission and the Planning Commission. As a result of these discussions, it was noted in the newly adopted Master Park Plan that parks and recreation funding will have to be raised in the community since most grants and the revenue sharing program are no longer funded. The funding recommendation went on to say that in additional to continuing a system of activity fees and charges, consideration should be given to establishing bond funding to complete the development of Veterans Memorial Park of Richfield, to complete the upgrading and development of five neighborhood parks, to construct a community activities building in Veterans Memorial Park of Richfield and to develop a bike/hike mini parkway system. A group of residents interested in the City's park system began • to meet in January, 1990. The membership list for the group continues to grow. A copy of the most recent membership list is attached. This group of residents, now called the Citizens for a Quality Community, requested and was provided with information about the City's updated Master Park Plan, the City's financial position and methods of obtaining statistical information about resident perception of the local park system and interest, if any, in improving the park system. It was pointed out to the group that the City Council had authorized a resident survey to be conducted in late February or early March of 1990. The members of the City Council, other members of the Community Services Commission and the Planning Commission were invited to join the Citizens for a Quality Community at a meeting held on March 15, 1990. At this meeting, Decision Resources, Ltd., a nationwide polling firm located in Minneapolis and retained by the City of Richfield to conduct the resident survey, shared the results of the random sample survey about the potential need for recreational improvements. Following a discussion of the survey results, members of the Citizens for a Quality Community unanimously agreed to recommend to the City Council that the City Council undertake 'a referendum of $10.5 million for improvements to the City's park system. Members of the group will be in attendance to answer any • questions the Council may have related to the referendum request. IS Recommended Motion: Authorize a referendum in early June of 1990 to ask the Richfield residents if the City of Richfield shall be authorized to issue general obligation bonds in an amount not to exceed $10,500,000 for the development and completion of the City's park and recreation system including neighborhood parks and Veterans Memorial Park of Richfield. Basis of Recommendation: 1. The Master Park Plan adopted in October, 1989 recommended that additional and alternate funding sources be considered for the City's park and recreation system. 2. A growing group of citizens, known as Citizens for a Quality Community, have expressed interest in the City's park and recreation system, with particular interest in pursuing a bond to finance the expeditious development and completion of the system. 3. It is noteworthy that an unusually strong number of residents feel a high quality city park and recreation system increases the value of homes and would support City action to place a high priority on completing the Veterans Memorial Park of Richfield complex, improving existing neighborhood parks and expanding, primarily in terms of parking, the Richfield Senior Citizens Center. 4. The City auditor indicates that a $10.5 million general obligation bond could be supported without adverse effect on the City's financial picture. Alternative Recommendation: 1. Do not authorize a referendum at this time for improvements to the city's park and recreation system. 2. Authorize a referendum at another time of the year. 3. Authorize a referendum at a level higher than proposed. 4. Authorize a referendum at a level lower than proposed. Discussion/Decision Mode: This item is on the March 26, 1990 City Council agenda. If the referendum is to be held in early June of 1990, wording for the ballot must be determined by mid to late April. Re ec ly submitted, Ja . Prosser Ci Manager . JDP/sdr Attachment . CITIZENS FOR A QUALITY COMMUNITY Parks Committee Members Don Anderson Howard Bunce LeRoy Burkemper Patty Burkemper Dave Buzicky Bill Davis Emily Day Francie Fletcher Lois Flynn Ann Garland John Hamilton Shirley Hokanson, Co-Chair Patty Hughes Rebecca Jaggers Robert Jensen Richard Krier Dave Lamberger Lowell Larson Mark Morrison Connie Murray Lynn Radunz • Suzanne Sandahl George Seltz Roger Stern, Co-Chair Gertrude Ulrich February, 1990 C7 MAR 23 190 10:19 HOLMES & GRAVEN P.3 Extract of Minutes of Meeting • of the City Council of the City of Richfield, Minnesota Pursuant to due call and notice theisoof, a regular meeting of the City Council of the City of Richfield, Minnesota, was held at the City Hall in said City on March 26, 1990, commencing at p.m. The following members were present: and the following were absent: s** The following resolution was presented by Couneilmember who moved its adoption: RESOLUTION NO. RESOLU'T'ION DETERMINING THE NECESSITY FOR THE ISSUANCE OF GENERAL OBLIGATION BONDS AND • CALLING A SPECIAL ELECTION THEREON BE IT RESOLVED by the City Council of the City of Richfield, Minnesota (City) as follows: 1. The City Council hereby finds and determines: (a) That it is in the best interests of the health, welfare, and safety of the City and its residents that the City acquire, construct, improve and equip park facilities, including without limitation completion of development of Veterans Memorial Park of Richfield, completion of upgrading and development of five neighborhood parks, construction of a community activities building in Veterans Memorial Park of Richfield, development of a bike/hike mini parkway system, and expansion, primarily in terms of parking, of the Richfield Senior Citizens Center (Project); and (b) That the City is authorized by the provisions of Minnesota Statutes, Chapter 475 (Act) to issue its obligations to finance the Project in whole or in part and to pledge its full faith, credit and taxing powers to the payment of such obligations; (c) That it is necessary and expedient to the sound financial management of the affairs of the City that the Project be financed in whole or in part by the issuance and sale of the City's general obligation bonds pursuant to the Act in an amount presently estimated not to exceed $10,500,000; and 0 MAR 23 190 10:1e HOLMES & GRAVEN P. 4j? (d) That the City Council has approvedthe use of electronic • voting machines by the affirmative vote of two-thirds of the members and has complied with the 60-day notice and six`. week demonstration requirements of Minnesota Statutes, Section 206.5$, 'Subdlvfsion 1, and has adopted special rules and instruction; for use of the electronic voting machines which have been approved by1he Secretary of`State; and (e) That the City Clerk has certified to the',, Secretary of State that an electronic voting system will be used in the City and the date of commencement of the use thereof. 2. The proposition for the issuance of the bonds will be submitted to the voters of the. City at a special election to be held on June 5, 1290. The election will be held and conducted in accordance with the laws of the State of Minnesota relating to special municipal elections and the City's home rule charter. 3. The City Clerk is directed to cause a notice of election and sample ballot in substantially the form attached hereto as Exhibit A to 'be posted and published as required by law as follows:. (a) The notice of election will be published once in the official newspaper of the City at least two weeks prior to the election; (b) The notice of election and a sample ballot will be posted at each of the polling places at least ten days prior to the election; • (e) The notice of election, and a sample ballot will be posted in the office of the City Clerk lobby at leant four days prior to the election; and (d) The sample ballot will be published in the official newspaper at least one week prior to the election. 4. The polling places, hours of election and the respective judges for the election will be those established by the City for special elections. The polls will be open from 7:00 a.m. until 8:00 p.m. S. The City Clerk is authorized and directed to prepare separate ballots, ballot strips, or ballot booklets for the elections for use in conjunction with the electronic voting system, on blue paper with black ink pursuant to the requirements of Minnesota Statutes, Section 206.61. The City Clerk will provide each polling place with at least two sample ballots which are facsimiles of the ballot strip or ballot booklet. Such samples must contain illustrated instructions for their use along with the electronic voting system or illustrated instructions will be posted adjacent to each sample ballot. 6. The City Council shall meet in the City Ball on June _ 7 p 19909 at - p.m., C.T. to canvass the results of the election and to declare the results thereof. • 2 • 90 10:19 HOLMES & GRAVEN The motion for the adoption of the foregoing resolution was duly seconded by Member and upon vote being taken thereon, the following voted in favor thereof: 4 I* and the following voted against the same: whereupon said resolution was declared duly passed and adopted. P.5 / • MAR 22 190 10:19 HOLMES & GRAVEN P.6 EXHIBIT A • NOTICE OF SPECIAL, ELECTION CITY OF RICHFIELD, MINNESOTA NOTICE IS HEREBY GIVEN that a special election will be held in and for the City of Richfield, Mlnnesota, on the 5th day of June, 1990, at which the following proposition will be submitted to the voters of the City for their approval or rejection; Shall the City of Richfield issue its general obligation bonds in a principal amount of $10,500,000 to finance the acquisition, equipping and betterment of park and recreational facilities in the City of Richfield? YES NO (_?} The polling places for said election are as follows: Precinct No. 1A Mt. Calvary Education Building Ward 3 6541 16th Avenue Precinct No. 2A St. Peter's Catholic Church Ward 2 6720 Nicollet Avenue • Precinct No. 3A Sheridan Hills School Ward 1 6400 Sheridan Avenue Precinct No. 4A St. Richard's Catholic Church Ward 1 7540 Penn Avenue Precinct No. 58 Richfield Junior High School Ward 1 7461 Oliver Avenue Precinct No. 6B Central School WIding Ward 2 7145 Harriet Avenue Precinct No. 7A Hope Presbyterian Education Facility Ward 2 7201 4th Avenue Precinct No. 8A Richfield Intermediate School Ward 3 7020 12th Avenue Precinct No. 9A Centennial School Ward 3 7315 Bloomington Avenue The polls for said election will be open at 7:00 a.m. and will remain open until closing at 8:00 p.m. n 4 MAR 23 '90 10:20 HOLMES & GRAVEN P.7 Any qualified registered voter of the City is entitled to vote at said election, and any resident of the City not previously registered as a voter may register on election day. BY OltDER OF THE CITY COUNCIL BY City Clerk Dated: , 19 5 CITY OF RICHFIELD, MINNESOTA • Council Letter No. 88 Agenda March 26, 1990 Issue Statement: Public hearing on the Urban Hennepin County Year XVI Community Development Block Grant Allocation. Background: The City Council is scheduled to conduct a public hearing on March 26, 1990 to determine Richfield's use of the Year XVI Urban Hennepin County Community Development Block Grant Allocation of $164,488. Requests for $167,336 of Year XV funds have been submitted. Information concerning Hennepin County's CDBG program objectives, the project funding requests and the rationale for providing the funds is attached. There is a 4.3% decrease in total funds allocated in Year XVI from last year. Nationally, the CDBG program was reduced resulting in an overall reduction to Hennepin County's allocation by 2.6 percent. Richfield's allocation was reduced by the 2.6% figure and an additional 1.7% based on a reduction of population shown in HUD's 1988 estimates. The result isa $7,421 reduction to Richfield. The two public service agencies were informed of this reduction. However, as shown both GMDCA and H.O.M.E. have requested amounts • equivalent to last year's allocation. Counties have a limitation that allocations to public service programs cannot exceed 15% of the total county allocation. As shown in the table below - last year the % of total GMDCA (11%) allocation and H.O.M.E. (8$) exceeded this 15% figure on a local level by 4%. Therefore it is recommended that Richfield maintain the same % of total level of funding for Year XVI as was in XV. The brunt of the reduction in funding requests is being born by the HRA. That is,,no funding is being requested for commercial redevelopment activities this year. Available funds should be directed to the residential rehabilitation loan program and scattered site. The chart below summarizes Year XVI allocation as compared to Year XV funding. Year XV Year XVI Year XVI Funded Requested Recomm- Activity Amount Fundinu ended Child Day Care 20,000 20,000 18,093 H.O.M.E. 14,100 14,100 13,159 Commerical Rehab/ Revolving Loan 10,000 0 0 Rehab of Private 62,809 68,236 68,236 Property (and 312 Rehab Loan Program) Scattered Site Housing 65,000 65,000 65,000 171,909 167,336 164,488 Recommended Motion: . Approve the allocation of Year XVI 1. Housing Improvement: a. Housing Rehabilitation b. Scattered Site 2. Public Service: a. H.O.M.E. b. Child Day Care TOTAL I• CDBG funds as follows: $68,236 $65,000 $13,159 $18,093 $164,488 Basis of Recommendation: 1. The County's statement of objectives indicates that communities should limit the number of projects funded to three and that the minimum project budget be $7,500. 2. Housing Improvement funding would be allocated for housing rehabilitation, and scattered site acquisitions under the New Home Program. The $65,000 allocated for scattered site is the minimum required to complete a site project through the Vo-Tech program. The $68,236 would be used for rehabilitation of single family homes through the Deferred Loan Program. 3. Public service funding would be allocated for the H.O.M.E. program to serve approximately 177 households. The child day care subsidy would be used to serve approximately 15 families - a total of 21 children, as was also the case in 1989. The two programs are combined into one project entitled public services. 4. Public Service accounts should be maintained at the same % of total level of funding as last year. This will allow the County to stay within the 15% overall limitation of public service funding. Alternative Recommendation: 1. Change the amount of funds allocated to each project. A public hearing on this matter has 1990. The deadline for submitting Hennepin County is April 16, 1990. 2. Fund other eligible projects which have not been identified by staff. Discussion/Decision Mode: JDP:sae been scheduled for March 26, the Year XV1 application to Re fully submitted, JaJsD. Prosser Cinager RESOLUTION NO. RESOLUTION APPROVING PROPOSED PROGRAM FOR YEAR XVI URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS AND AUTHORIZING ITS SUBMITTAL u WHEREAS, the City of Richfield, through execution of a Joint Cooperation Agreement with Hennepin County, is a cooperating unit in the Urban Hennepin County Community Development Block Grant Program; and WHEREAS, the City of Richfield has developed a proposal for the use of Urban Hennepin County CDBG funds made available to it, following a public hearing on March 26, 1990 to obtain the views of citizens on local and Urban Hennepin County housing and community development needs and the City's following proposed use of $164,488 from the Year XVI Urban Hennepin County Community Development Block Grant. Projects Budget 1. Housing Improvement: a. Housing Rehabilitation $68,236 b. Scattered Site $65,000 2. Public Service: a. H.O.M.E. $13,159 b. Child Day Care $18,093 TOTAL $164,488 BE IT RESOLVED that the City Council of Richfield, Minnesota approves the proposed use of Year XVI Urban Hennepin,County Community Development Block Grant funds and program related income and authorizes submittal of the proposal to Hennepin County for review by the Urban Hennepin County Citizens Advisory Committee and for inclusion in the Year XVI Urban Hennepin County Community Development Block Grant Program Statement of Objectives and Projected Use of Funds. Steven J. Quam, Mayor ATTEST: Thomas Ferber, City Clerk RATIONALE FOR FUNDING SCATTERED SITE PROJECT The New Home Scattered Site Program provides the following: 1. Clearance of substandard houses. There are approximately 180 substandard garage and cottage type houses scattered throughout Richfield. The full $65,000 requested is sufficient to buy one property. 2. An affordable housing opportunity for first time home buyers. Families with an average Richfield income of $30,000 cannot afford the average Richfield home which sells for $81,700. The New Home Program makes it possible for young families with incomes of $27,000 to $33,000 to buy a home in Richfield. During the last 10 years this program has provided virtually the only new affordable housing for young families. 3. Increased property tax revenue. The annual net increase in tax revenue approximates $1,000 per property. 4. Permits the continuation of a unique relationship with South Hennepin Vo-Tech Vo-Tech desires to continue this program because it provides a student training opportunity. Because of this training, the labor costs on these houses are less than conventionally constructed homes. 5. Compliments the Expanded New Home Program being formulated by staff. The CDBG Scattered Site Program provides affordable housing for first time home buyers. The Expanded Program will provide housing to the "move up" market. The CDBG Scattered Site Program provides funds for tenant relocation. The Expanded Program will have no funds for relocation and thus will deal only with owner-occupied or vacant dwellings. RATIONALE FOR FUNDING REHABILITATION DEFERRED LOAN PROJECT The Deferred Loan Program provides the following: 1. Virtually the only means for low income homeowners to fund major improvements. The average age of Richfield homes is 35 to 45 years. At this age, major improvements are needed; furnace replacement, electrical update, roof replacement, window and siding update. Weatherization and handicapped accessibility improvements are also funded by this program. 2. There are 21 homeowners currently waiting for assistance. This application for $68,236 would fund approximately 11 of those waiting homeowners. There are an estimated 1,800 lower income homeowners who need deferred loan assistance. The 21 homeowners currently waiting do not yet reflect the requests usually received in the spring. 3. Funds are needed for potential emergency situations. In 1989, five emergency loans were provided for,furnace replacement. 4. Deferred loans provide for household stability and independent living. Having deferred loans available to elderly homeowners often makes it possible for them to continue to live independently. The availability of deferred loans to families helps them resolve seemingly impossible situations which threaten their stability. Serving Bloomington, Eden Prairie, Richfield and Edina III iR1JIIICIFIII? .Household & Outside Maintenance for Elderly March 5, 1990 Judy Kunz City of Richfield 6700 Portland Avenue S Richfield, MN 55423 Gear Ms. Kunz: This letter is a request by HOME for $14,100 of Year XVI CDBG funds from, the City of Richfield. The allocation will be used to support maintenance and chore services to 185 Richfield elderly and disabled households between July 1, 1990 and June 30, 1991. In 1989 HOME served 177 Richfield households with 3,444 hours of service. Additional data collected from clients reflect the essential need for these . services. Age 72% over the age of 75 years Income 43% with incomes under $10,000/year Handicapped 50% have disabilities Sex 76% are women living alone HOME is aware that national CDBG funding appropriations may decrease in Year XVI. To help accommodate that change HOME has maintained its Year XVI request at Year XV levels even though our expenses to serve Richfield are projected to increase to $66,340 (a 5% increase) in 1990' On January 1, 1990 HOME services were transferred from the, South Hennepin Human Services Council to Senior Community Services. Senior Community Service's commitment is to quality services for the elderly and you can be assured that HOME will continue to be responsive to the needs of Richfield's elderly and disabled residents in 1990. Sincerely, Don Hauge, Pro ram Director HOME South Hennepin Human Services Council Creekside Center 9801 Penn Ave. So. Room 100 Bloomington, MN 55431 (612) 888-SS30 H.O.M.E. (Household and Outside Maintenance for Elderly) Summary of Service 1989 10 BLOOMINGTON MAINTENANCE HOMEMAKER # of Customers 225 # of Households 204 # of Jobs 910 # of Hours 2,816 EDINA # of Customers 104 # of Households 89 # of Jobs 814 # of Hours 1,767 RICHFIELD # of Customers 144 # of Households 137 # of Jobs 872 # of Hours 2,190 r1 122 100 1,481 3,319 81 75 1,114 2,442 40 40 538 1,254 TOTAL 347 304 2,391 6,135 185 164 1,928 4,209 184 177 1,410 3,444 # of Customers 20 7 27 # of Households 17 6 23 # of Jobs 48 29 77 # of Hours 311 75 386 ST. LOUIS PARK # of Customers 15 15 # of Households 14 14 # of Jobs 23 23 # of Hours 245 245 TOTAL # of Customers 508 250 743 # of Households 461 221 668 # of Jobs 2,667 3,162 5,829 # of Hours 7,329 7,090 14,419 • 9 February 28, 1990 Ms. Judy Kunz City of Richfield 6700 Portland Richfield, MN 55423 Dear Ms. Kunz: ;r9k On behalf of your citizens in need, I am requesting that Richfield consider allocating $20,000 of your Community Development Block Grant money to the child care sliding fee subsidy program for your helping 17 families, and there are 31 eligible Richfield families on the waiting list. I have enclosed some information about the families now being served. In addition to the waiting list as proof of need for this program, you may be aware of the more general reports. Currently there are 7500 eligible families in Minnesota on the waiting list - and the list is growing. The Federal Welfare Reform Act has put additional pressure on the sliding fee child care money by setting priorities for child care assistance and encouraging AFDC recipients to move toward self-sufficiency. So many women have take advantage of this program, that state and county money is used to help these families, and is not available for the "working poor", who also need help paying for child care if they are,going to be able to afford to continue to work. Also, the guidelines have been adjusted for inflation for the sliding fee subsidy, so families can stay on the program longer as their incomes rise, though the subsidy will decrease',. The waiting lists continue to grow, and it is estimated that no families will be moved off the county/state waiting list and on to the program for 10 months or longer. So your city's program is needed more than ever by your residents. Thank you for your past support of the subsidy program. I would be glad to get any more information about it for you. I will try to attend the meeting at which the Council decides on their CDBG priorities to answer questions then. Sincerely, Grace Norris Community Liaison GN/co Greater Minneapolis Day Care Association Dale Anderson, Executive Director 0 1628 Elliot Ave. S. 9 Minneapolis, Minnesota 55404 0 (612) 341-1177 CITY OF RICHFIELD, MINNESOTA Council Letter No. 87 Agenda, March 26, 1990 • Issue Statement: Public Hearing on revocation of conditional use permit previously issued to Walser Corporation at 2100 West 78th Street. Background: The City Council approved an amended conditional use permit on September 12, 1988 and conditioned that approval, in item 2, on the removal of the three billboard type signs "within one year" This condition was subsequently reconfirmed on January 8, 1990. The billboards have not been removed. A notice of violation was sent to Walser with a demand that such violation be remedied within ten days. Pursuant to ordinance, it was referred to the City Manager who concurred that a hearing be held and that such hearing be scheduled for March 26, 1990. By letter of March 19, 1990, Peter K. Beck, attorney for Walser, requested a continuance until "sometime on or after April 2, 1990". Recommended Action: That consideration be given to continuing the revocation hearing to the next meeting of the City Council on April 9, 1990 at 7:00 P.M. Basis of Recommendation: is 1. The conditional use permit amended September 12, 1988 was conditioned on the removal of the three billboard type signs "within one year". 2. The condition was reaffirmed on January 8, 1990. 3. The billboards have not been removed. i 4. The process set forth in the Zoning Ordinance for revocation of a conditional use permit has been followed. 5. Respondent has, by letter, requested a continuance. Alternative Recommendation: The City Council may choose to go forward with the public hearing in the absence of the Respondent. Discussion/Decision Mode: A public hearing is scheduled for 7:00 P.M. on Monday, March 26, 1990. Notice of hearing was mailed to property owners within 350 feet of th6 property. Upon receipt of the letter requesting a continuance, another notice was sent to the adjoining property owners informing them that such request had been made and that the next available date was April 9, 1990 if the matter was continued by the City Council. 41 R lly submitted Ja a D. Prosser Ci Manager CITY OF RICHFIELD, MINNESOTA Memorandum DATE: March 16, 1990 0 TO: James Prosser, City Manager FROM: Byron all ?ommu y Development Director SUBJECT: Walser Buick Notice of Violation and Failure to Comply A notice of violation, pursuant to Section 545.09, Subd. 7(b), was mailed to Walser Automotive and received by them on March 5, 1990. The violation particularized in the notice is as follows: The Conditional Use Permit that was approved on September 12, 1988 by the City Council, conditioned that approval, in item 2, on the removal of the three billboard type signs "within one year". The time has expired and those signs are still in place. Walser was given ten days to remedy the violation and the ten days have expired. I have again reviewed the property and the violation has not.been remedied. In addition, I received a letter from Peter Beck, the attorney representing Walser Corppration, stating their position that they have ',a "legal right to keep the three billboards". I am recommending to you as City Manager, pursuant to Section 545.09, Subd. 7(c), that a hearing be held by the Council to consider the revocation of the Conditional Use Permit approved on September 12, 1988. cc: Peter Beck n U PUBLIC HEARING NOTICE CITY OF RICHFIELD, MINNESOTA CITY COUNCIL • TO: Mr. Rick Hammerstrom Walser Automotive 5555 W. 78th Street Edina, MN 55435 LOCATION OF PROPERTY: Walser Buick, 2100 W. 78th Street Richfield, MN 55423 PURPOSE: To hear reasons for or against the revocation of a conditional use permit approved September 12, 1988. TIME OF HEARING: 7:00 P.M., Monday, March 26, 1990 PLACE OF HEARING: Council Chambers Richfield City Hall 6700 Portland Avenue South Richfield, MN 55423 VIOLATION: Violation of the Conditional ',Use Permit, approved on September 12, 1988 by the City Council, which conditioned that approval, in item 2, on the removal of the three billboard type signs "within one year". The time has expired 'and those signs have not been removed. RECOMMENDATION: That the City Council revoke the Conditional Use Permit approved September 12, 1988 for violation of a specific condition of the approval. NOTIFICATION: You are hereby notified that you have the right to: 1. Be present at the hearing; 2. be represented by legal council during the hearing and; 3. present testimony and evidence and cross examine witnesses; and, • 4. a copy of the staff report will be available for your review at City Hall on Friday, March 23, 1990 after 3:00 P.M. ANY QUESTIONS: Byron Wallace City of Richfield 6700 Portland Avenue South Richfield, MN 55423 861-9760 MAILING DATE: March 16, 1990 0 • NOTE!!! The attorney for Walser Automotive, Peter K. Beck, has requested a continuance of the attached hearing until April. If this matter is continued by the City Council, the next available date is April 9, 1990. Any Questions: Byron Wallace City of Richfield 6700 Portland Avenue South Richfield, MN 55423 861-9760 NOTE!!! The attorney for Walser Automotive, Peter K. Beck, has requested a continuance of the attached hearing until April. 'If this matter is continued by the City Council, the next available date is April 9, 1990. Any Questions: Byron Wallace City of Richfield 6700 Portland Avenue South Richfield, MN 55423 861-9760 r? L? PUBLIC HEARING NOTICE CITY OF RICHFIELD, MINNESOTA 0 1J 0 TO: LOCATION OF PROPERTY: PURPOSE: TIME OF HEARING: PLACE OF HEARING: CITY COUNCIL Property owners within 350 feet. Walser Buick, 2100 W. 78th Street Richfield, MN 55423 To hear reasons for or against the revocation of a conditional use permit approved September 12, 1988. 7:00 P.M., Monday, March 26, 1990 Council Chambers Richfield City Hall 6700 Portland Avenue South Richfield, MN 55423 VIOLATION: Violation of the Conditional Use Permit, approved on September 12, 1988 by the City Council, which conditioned that approval, in item 2, on the removal of the three billboard type signs "within one year". The time has expired and those signs have not been removed. RECOMMENDATION: That the City Council revoke the Conditional Use Permit approved September 12, 1988 for violation of a specific condition of the approval. HOW TO PARTICIPATE: 1. To attend the hearing and give testimony for or against the proposal. 2. Submit a letter to the City Council expressing your views. 3. A copy of the staff report will be available for your review at City Hall on Friday, March 23, 1990 after 3:00 P.M. ANY QUESTIONS: Byron Wallace City of Richfield 6700 Portland Avenue South Richfield, MN 55423 861-9760 MAILING DATE: March 16, 1990 JAMES P. LARKIN ROBERT L. HOFFMAN JACK F. DALY 0. KENNETH LINDGREN WENDELL R. ANDERSON GERALD H. FRIEDELL ALLAN E. MULLIGAN ROBERT J. HRIENNSOSSEY JAMES C. , CK EDWARD J. DRISCOLL GENE N. FULLER DAVID C. SELLERGREN RICHARD J: KEENAN JOHN D. FULLM ER ROBERT E. BOYLE FRANK I. HARVEY CHARLES S. MODELL CHRISTOPHER J. DIETZEN JOHN R. BEATTIE LINDA H. FISHER THOMAS P. STOLTMAN STEVEN G. LEVIN MICHAEL C. JACKMAN JOHN E. DIEHL JON S. SWIERZEWSK1 THOMAS J. FLY N JAMES P. OUINN TODD I. FREEMAN STEPHEN B. SOLOMON PETER K. BECK JEROME H. KAHNKE SH ERRILL R. OMAN GERALD L. SECK JOHN B. LUNDOUIST DAYLE NOLAN- THOMAS S. HUMPHREY, JR. MICHAEL T. MCKIM CHARLES R. WEAVER HERMAN L.TALLE VINCENT G. ELLA ANDREW J. MITCHELL 0 March 19, 1990 LAI3KIN, HOFFMAN, DALY & LINDGBEN, LTD. ATTORNEYS AT LAW 1500 NORTHWESTERN FINANCIAL CENTER 2000 PIPER JAFFRAY TOWER 7900 XERXES AVENUE SOUTH 222 SOUTH NINTH STREET BLOOMINGTON, MINNESOTA 55431 MINNEAPOLIS, MINNESOTA 55402 TELEPHONE 16121 835-3800 TELEPHONE 16121 338-6610 FAX 16121 896-3333 FAX 16121 3369760 NORTH SUBURBAN OFFICE 8990 SPRINGBROOK DRIVE, SUITE 250 COON RAPIDS, MINNESOTA 55433 TELEPHONE 16121 786-7117 FAX (6121786-6711 Reply to Bloomington Byron J. Wallace Community Development City of Richfield 6700 Portland Avenue Richfield, Minnesota Re: Walser Buick Dear Byron: hearing before the Richfield City Council on March 26, 1990 to consider revocation of the Conditional Use Permit for Walser Buick. The stated ground for revocation is failure to remove three billboard type signs from the Buick site. Director 55423-2599 JOHN A. COTTER - BEATRICE A. ROTHWEILER PAUL B. PLUNKETT ALAN L. KILOOW KATHLEEN M. PICOTTE NEWMAN MICHAEL B. LEBARON FRANCIS E. GIBERSON TRACY R. EICHHORN-HICKS AMY DARR GRADY CATHERINE BARNETT WILSON JEFFREY C. ANDERSON DANIEL L. BOWLES TODD M. VLATKOVICH TIMOTHY J. MCMANUS GREGORY E. KORSTAD LISA A. GRAY GARY A. RENNEKE THOMAS H. WEAVER SHANNON K. MCCAMBRIDGE DENISE M. NORTON GARY A. VAN CLEVE MICHAEL B. BRAMAN JOSEPH W. DICKER JA COUELINE F. DIETZ GAYLEN L. KNACK RODNEY D. IVES JULIE A. WRASE CHRISTOPHER J. HARRISTHAL SHARON L. BRENNA MARIKAY CANAGA LITZAU TIMOTHY J. KEANE JON R. NORBERG WILLIAM C. GRIFFITH, JR. THEODORE A. MONDALE JOHN J. STEFFENHAGEN DANIEL W. VOSS MARK A. RURIK JOHN R. HILL JAMES K. MARTIN STEVEN P. KATKOV THOMAS J. SEYMOUR OF COUNSEL JOSEPH GITIS RICHARD A. NORDBYE DAVID J. PEAT -ALSO ADMITTED IN WISCONSIN I have received today, March 19, 1990, a "public hearing notice" addressed to Mark Hammerstrom at Walser Automotive advising of a Enclosed are letters from myself to the City Attorney dated February 12, 1990 and to you dated March 5, 1990 pointing out that it is unlawful under Minnesota state law to condition a land use approval on the removal of an advertising device. Revocation of the Walser Buick Conditional Use Permit for failure to remove the three billboard signs on the property would be in direct violation of this state statute. If and when the City Attorney is consulted, I am sure he will agree that this is the case. Nevertheless, we will be happy to meet with the City Council to explain the impact of this state law on the situation and to discuss the importance of these signs to Walser's business. Unfortunately, however, I have a long-standing commitment to be out of town from March 23 to April 1, 1990. The principals at Walser, including Mike Shrank and Mark Hammerstrom, will also be out of town at 'a seminar on March 26, 1990. We would appreciate it very much if this hearing ?Y-7 LARKIN, HOFFMAN, DALY 8c LINDGREN, LTD. Byron J. Wallace March 19, 1990 Page could be continued from March 26, 1990 to sometime on or after April 2, 1990. This would also give us and the City Council an opportunity to review the staff report and prepare for the hearing before the City Council. Even if we were not out of town, seven days notice of the hearing and one business day to review the staff report is an awfully short period of time to prepare for a hearing which could potentially put Walser Buick out of business. Please let me know as soon as possible if the hearing will be continued, so that we can make the necessary arrangements. S' pr-A p( rely, Peter K. Beck, for LARKIN, HOFFMAN, DALY & LINDGREN, Ltd. kw Enclosures cc/enc: Mark Hammerstrom Jim Prosser, City Manager John Dean, City Attorney r ? U PKB:FK5s CITY OF RICHFIELD, MINNESOTA Council Letter No. 86 Agenda March 26, 1990 Issue Statement: Adoption of resolutions authorizing the submittal of preliminary loan applications for the purchase of property at 7645 1st Avenue South and 7644 10th Avenue South. Background: The City Council has approved the official map which calls for the upgrading of 77th Street between 135W and TH77. The upgrading will necessitate the purchase of property. At the present, the timing of the construction of these improvements is uncertain. However, people who own and reside in these homes must continue to make decisions about their lives. In some instances, these people must sell their home. But, the pending project makes it impossible to sell. Buyers do not want to purchase uncertainty. To meet this need, the Metropolitan Council has established the Right-Of-Way Acquisition Loan Fund (RALF). The fund is designed to permit cities to purchase owner- occupied dwellings when continued ownership of the property would be a hardship for the owner. The loan bears no interest. A loan would be equal to the value of the real estate, plus relocation benefits minus the salvage value of the houses. The city would pay back the loan when funding for the 77th Street project became available. The process for securing a loan is generally as follows. After the owner of a property has listed it for sale for a',period of at least 90 days, a preliminary application is submitted to the Metropolitan Council. The attached resolutions are part of the preliminary application. The Metropolitan Council then reviews the preliminary application. If the preliminary application is approved, negotiations for the purchase of the property may commence and a loan agreement with Metropolitan Council must be drafted. Following purchase, it appears likely that the properties would be rented. Staff has been working with the owners of two properties who appear to qualify for RALF. One is at 7644 10th Avenue and the second is at 7645 1st Avenue. Each property has been listed with a realtor. The 90 day listing period is ending. Potential purchasers have looked at each property but when told of the pending street project lose interest. (Several weeks ago, a letter was sent to all owner-occupied property which would be purchased for the 77th Street project. The RALF program was presented. While some phone calls were received from letter recipients, no one appeared to have a hardship situation as defined in the RALF program. Thus, at the present there are only two property owners with whom staff is working). 0 Recommended Action: Adopt the attached resolutions which authorize staff to proceed with the filing of a preliminary application for RALF for each of the two properties. Basis of Recommendation: 1. The City Council has approved the official map for upgrading 77th Street. 2. The upgrading will require the purchase of 7645 1st Avenue South and 7644 10th Avenue South. 3. The city has no funds currently available to purchase these properties. 4. The Metropolitan Council operates RALF and has indicated a desire to use that program to assist Richfield along 77th Street. 5. The owners of the subject properties appear to have an eligible hardship and have been unable to sell their homes during the 90 day listing period. 6. The City Council, during deliberations on the 77th Street project, indicated they would assist property owners in minimizing the difficulties this project imposed on them. Alternative Recommendation: 1. Refuse to authorize the application. 2. Delay action until a future date. Discussion/Decision Mode: While the RALF program provides assistance, it does not provide immediate relief. Staff has been working with theseowners since early fall. It will likely require an additional 2 to 3 months to complete the process. Action to adopt the resolutions on March 26th would facilitate the.processing. Res7anar lly submitted JamProsser Citger JDP:sae 0 0 RESOLUTION NO. THE CITY OF RICHFIELD, MINNESOTA RESOLUTION AUTHORIZING LOAN APPLICATION FOR ACQUISITION OF 77TH STREET RIGHT-OF-WAY; 7645 1ST AVENUE SOUTH WHEREAS, the City of Richfield has adopted an official map for improvements to 77th Street WHEREAS, the improvements to 77th Street necessitate the purchase of real estate including the property at 7645 1st Avenue South; WHEREAS, city funds are presently not available for purchase of real estate; WHEREAS, the Metropolitan Council under Minnesota Statute 473.167, Subd. 2 a. administers the Right-Of-Way Acquisition Loan Fund (RALF) to acquire properties so situated with owners who are experiencing a hardship; WHEREAS, the Metropolitan Council has indicated that RALF monies would be made available for the purchase of "hardship properties" along 77th Street; WHEREAS, the owner of this property may qualify for purchase under the hardship provisions of RALF. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota, that the City Managerlsubmit an application to the Metropolitan Council under the RALF program for purposes of initiating the process which may result in the acquisition of the property at 7645 1st Avenue South. Adopted by the City Council of the City of Richfield, Minnesota this 26th day of March, 1990. Steven J. Quam, Mayor ATTEST: Thomas P. Ferber, City Clerk BP:dkh CCLTR-3/26-7645 1ST C RESOLUTION NO. THE CITY OF RICHFIELD, MINNESOTA RESOLUTION AUTHORIZING LOAN APPLICATION FOR ACQUISITION OF 77TH STREET RIGHT-OF-WAY; 7644 10TH AVENUE SOUTH WHEREAS, the City of Richfield has adopted an official map for improvements to 77th Street; WHEREAS, the improvements to 77th Street necessitate the purchase of real estate including the property at 7644 10th Avenue South; WHEREAS, city funds are presently not available for purchase of real estate; WHEREAS, the Metropolitan Council under Minnesota Statute 473.167, Subd. 2 a. administers the Right-Of-Way Acquisition Loan Fund (RALF) to acquire properties so situated with owners who are experiencing a hardship; WHEREAS, the Metropolitan Council has indicated that RALF monies would be made available for the purchase of "hardship properties" along 77th Street, WHEREAS, the owner of this property may qualify for purchase under the hardship provisions of RALF. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota, that the City Manager submit an application to the Metropolitan Council under the RALF program for purposes of initiating the process which may result in the acquisition of the property at 7644 10th Avenue South. Adopted by the City Council of the City of Richfield, Minnesota this 26th day of March, 1990. Steven J. Quam, Mayor ATTEST: 0 Thomas P. Ferber, City Clerk ;;?? _e_?. • CITY OF RICHFIELD, MINNESOTA Council Letter No. 86 Agenda March 26, 1990 Issue Statement: Adoption of resolutions authorizing the submittal of preliminary loan applications for the purchase of property at 7645 1st Avenue South and 7644 10th Avenue South. Background: The City Council has approved the official map which calls for the upgrading of 77th Street between 135W and TH77. The upgrading will necessitate the purchase of property. At the present, the timing of the construction of these improvements is uncertain. However, people who own and reside in these homes must continue to make decisions about their lives. In some instances, these people must sell their home. But, the pending project makes it impossible to sell. Buyers do not want to purchase uncertainty. To meet this need, the Metropolitan Council has established the Right-Of-Way Acquisition Loan Fund (RALF). The fund is designed to permit cities to purchase owner- occupied dwellings when continued ownership of the property would be a hardship for the owner. The loan bears no interest. A loan would be equal to the value of the real estate, plus relocation benefits minus the salvage value of the houses. The city would pay back the loan when funding for the 77th Street project became • available. The process for securing a loan is generally as follows. After the owner of a property has listed it for sale for a,period of at least 90 days, a preliminary application is submitted to the Metropolitan Council. The attached resolutions are part of the preliminary application. The Metropolitan Council then reviews the preliminary application. If the preliminary application is approved, negotiations for the purchase of the property may commence and a loan agreement with Metropolitan Council must be drafted. Following purchase, it appears likely that,the properties would be rented. Staff has been working with the owners of two properties who appear to qualify for RALF. One is at 7644 10th Avenue and the second is at 7645 1st Avenue. Each property has been listed with a realtor. The 90 day listing period is ending. Potential purchasers have looked at each property but when told of the pending street project lose interest. (Several weeks ago, a letter was sent to all owner-occupied property which would be purchased for the 77th Street project. The RALF program was presented. While some phone calls were received from letter recipients, no one appeared to have a hardship situation as defined in the RALF program. Thus, at the present there are only two property owners with whom staff is working). 0 • Recommended Action: Adopt the attached resolutions which authorize staff to proceed with the filing of a preliminary application for RALF for each of the two properties. Basis of Recommendation: 1. The City Council has approved the official map for upgrading 77th Street. 2. The upgrading will require the purchase of 7645 1st Avenue South and 7644 10th Avenue South. 3. The city has no funds currently available to purchase these properties. 4. The Metropolitan Council operates RALF and has indicated a desire to use that program to assist Richfield along 77th Street. 5. The owners of the subject properties appear to have an eligible hardship and have been unable to sell their homes during the 90 day listing period. 6. The City Council, during deliberations on the 77th Street project, indicated they would assist property owners in minimizing the difficulties this project imposed on them. • Alternative Recommendation: 1. Refuse to authorize the application. 2. Delay action until a future date. Discussion/Decision Mode: While the RALF program provides assistance, it does not provide immediate relief. Staff has been working with these',owners since early fall. It will likely require an additional 2 to 3 months to complete the process. Action to adopt the resolutions on March 26th would facilitate the processing. Respect lly submitted Jame Prosser City anager JDP:sae U RESOLUTION NO. • THE CITY OF RICHFIELD, MINNESOTA RESOLUTION AUTHORIZING LOAN APPLICATION FOR ACQUISITION OF 77TH STREET RIGHT-OF-WAY; 7645 1ST AVENUE SOUTH WHEREAS, the City of Richfield has adopted an official map for improvements to 77th Street; WHEREAS, the improvements to 77th Street necessitate the purchase of real estate including the property at 7645 1st Avenue South; WHEREAS, city funds are presently not available for purchase of real estate; WHEREAS, the Metropolitan Council under Minnesota Statute 473.167, Subd. 2 a. administers the Right-Of-Way Acquisition Loan Fund (RALF) to acquire properties so situated with owners who are experiencing a hardship; WHEREAS, the Metropolitan Council has indicated that RALF monies would be made available for the purchase of "hardship properties" along 77th Street; • WHEREAS, the owner of this property may qualify for purchase under the hardship provisions of RALF. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota, that the City Manager submit an application to the Metropolitan Council under the RALF program for purposes of initiating the process which may result in the acquisition of the property at 7645 1st Avenue South. Adopted by the City Council of the City of Richfield, Minnesota this 26th day of March, 1990. Steven J. Quam, Mayor ATTEST: Thomas P. Ferber, City Clerk BP:dkh CCLTR-3/26-7645 1ST e?-e 0 RESOLUTION NO. THE CITY OF RICHFIELD, MINNESOTA RESOLUTION AUTHORIZING LOAN APPLICATION FOR ACQUISITION OF 77TH STREET RIGHT-OF-WAY; 7644 10TH AVENUE SOUTH WHEREAS, the City of Richfield has adopted an official map for improvements to 77th Street; WHEREAS, the improvements to 77th Street necessitate the purchase of real estate including the property at 7644 10th Avenue South; WHEREAS, city funds are presently not available for purchase of real estate; WHEREAS, the Metropolitan Council under Minnesota Statute 473.167, Subd. 2 a. administers the Right-Of-Way Acquisition Loan Fund (RALF) to acquire properties so situated with owners who are experiencing a hardship; WHEREAS, the Metropolitan Council has indicated that RALF • monies would be made available for the purchase of "hardship properties" along 77th Street; WHEREAS, the owner of this property may qualify for purchase under the hardship provisions of RALF. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota, that the City Manager submit an application to the Metropolitan Council under the RALF program for purposes of initiating the process which may result in the acquisition of the property at 7644 10th Avenue South. Adopted by the City Council of the City of Richfield, Minnesota this 26th day of March, 1990. Steven J. Quam, Mayor ATTEST: of Thomas P. Ferber, City Clerk CITY OF RICHFIELD, MINNESOTA Council Letter No. 85 Agenda March 26, 1990 • Issue Statement: Purchase of fireworks for Fourth of July Celebration. Background: The City Council policy resolution on purchasing provides that when the purchase of merchandise, materials, equipment or construction exceeds the amount of $5,000, authority to purchase shall be submitted to the City Council for consideration. Two firms in the metropolitan area sell fireworks and provide the staff to do the display. In the opinion of the city staff and the Fourth of July Committee, one of the firms, Americana Fireworks Display Company, provides a better show. This firm has been used for the Richfield Fourth of July Celebration fireworks for the past eight years. In 1982 and 1983, the cost was $5,000. In 1984 and 1985, the cost was $5,400. In 1986 the cost was $5,970, but the display was about a 30% reduction in time and content compared to the 1985 display. In 1987, an approximation of the 1985 display was provided for $8,900. In 1988, the cost was $9,400. In 1989, the cost was $10,000. Americana has submitted a contract in the amount of $10,000 to provide fireworks for the Celebration in 1990. Americana will provide public liability and property damage insurance in the amount of $300,000. In the event of cancellation due to • inclement weather, the show will be held on Saturday, July 7. City staff recommends adding a condition to the contract which requires the employees of Americana Fireworks Display Company to clean up the shooting area, after the display, of any potentially dangerous material. The City's budgeted cost share of the 1990 Celebration is $15,000 for fireworks, additional insurance coverage, and other items such as entertainment, performance stages, lighting and sound systems. Recommended Motion: Authorize the City Manager to execute a contract an& payment in the amount of $10,000 to Americana Fireworks Display!Company for. fireworks and staff to do the display for the 1990 Richfield Fourth of July Celebration. Basis of Recommendation: 1. The City of Richfield supports the Richfield Fourth of July Celebration including, in part, the financial cost of the fireworks display. i 2. Americana Fireworks Display Company has submitted a contract in the amount of $10,000. 3. There is a $15,000 in the adopted 1990 budget for the i recreation division of the Community Services Department for the Celebration. Alternative Recommendation: 1. The City Council could decide to eliminate its financial support of the community Fourth of July Celebration. 2. The size of the display could be reduced thereby reducing the cost to the community. Discussion/Decision Mode: This item has been scheduled for the consent calendar on the March 26 agenda to provide sufficient time to confirm the fireworks display for the 1990 Richfield Fourth of July Celebration. Respectf lly submitted, Jame D. Prosser City Manager JDP: fb 0 # CITY OF RICHFIELD, MINNESOTA Council Letter No. 84 Agenda March 26, 1990 Issue Statement: Purchase in excess of $5,000 of a Turf Top Dresser for Rich Acres Golf Course. Background: The City Council policy resolution on purchasing provides that when the purchase of merchandise, materials, equipment or ,construction exceeds the amount of $5,000, authority to purchase shall be submitted to the City Council for consideration. A 1980 Cushman mounted 30-inch turf top dresser is fully depreciated and scheduled for replacement in 1990. Staff received the following quotations for a new top dresser: MTI Distributing Co. $6,250 Turfco Manufacturing, Inc. $6,295 Recommended Motion: Authorize a purchase order to MTI Distributing Company in the amount of $6,250 for a new Turf Top Dresser. Basis of Recommendation: 1. MTI Distributing Company submitted the lowest quotation for the equipment requested. 2. The 1990 Central Garage Motor Pool budget contains $8,000 funding for this purchase. Alternative Recommendation: 1. Although a new unit is needed, do not purchase a turf top dresser to replace the fully depreciated unit!. 2. Purchase a turf top dresser from the other vendor although the purchase price is higher. 3. Reject the quotations received and direct staff to obtain new quotations. However, staff does not believe a better price can be obtained from a reputable manufacturer or distributor. Discussion/Decision Mode: This item is scheduled for the March 26, 1990 Council meeting. Staff is requesting approval at this time in order to facilitate timely delivery of this equipment for the 1990 golf season. Res V lly submitted, • Jame D. Prosser City Manager JDP:sae CITY OF RICHFIELD, MINNESOTA Council Letter No. 83 • Agenda March 26, 1990 CONFIDENTIAL Issue Statement: Consideration of approval of worker's compensation settlement. Background: In 1982, aCommunity Services Worker filed a claim for an injury to his lower back and shoulders. He has claimed that he is unable to work since that time, and has been collecting worker's compensation from the city. The Social Security Administration recently determined that Claimant was permanently and totally disabled, and awarded him Social Security benefits retroactive to August, 1985. Claimant and City have negotiated a settlement of the worker compensation claim for $80,723.80. As a result of claimant's social security award, the city is entitled to certain past and future reimbursement from the Minnesota Special Compensation Fund. Of the $80,723.80 paid by th city, $38,134.82 will be reimbursed to the city from the Special Compensation Fund. The remainder of the settlement will be reimbursed to the city by the Worker's Compensation • Reinsurance Association. Recommended Motion: Approve the settlement to the claimant in the amount of $80,723.80 Basis for Recommendation: 1. Since the Social Security Administration has determined that Mr. Claimant is totally and completely disabled, it would be in the city's best interest to do a full, and complete settlement of this matter at this time. Alternative Recommendation: 1. Not approve the settlement. Discussion/Decision Mode: This item has been placed under Executive Session for March 26, 1990, at 6:00 p.m. R spe ully submitted, Ja a D. Prosser Ci Manager JDP/eja HOLws & GRAVEN • CHARTERED ROBERT A. ALsOP 470 Pillsbury Center, Minneapolis, Minnesota 55402 Attorney at Law (612) 337-9300 Direct Dial (612) 337-9224 March 20, 1990 Mr. James Prosser City Manager City of Richfield 6700 Portland Avenue Richfield, MN 55423 Re: John Schmatz v. City of Richfield Our File No. RC145-29 Dear Mr. Prosser: • This letter outlines the current status of the above-referenced workers' compensation matter and recommends its settlement pursuant to the Stipulation for Settlement submitted herewith. John Schmatz is a 39-year old former employee of the City of Richfield who was recently determined to be permanently and totally disabled by the Social Security Administration Office and was awarded Social Security disability benefits retroactively from August, 1985. The Social Security Administration found that Mr. Schmatz' current disability was caused by a March 9, 1982 accident whereby he injured his lower back and shoulders while trying to carry a sheet of steel with a fellow maintenance worker for the City of Richfield. Mr. Schmatz has been unable to obtain employment since the 1982 accident and currently is not looking for work due to his continued disabled condition. Since 1982, the City has paid Mr. Schmatz substantial workers' compensation benefits in one form or another, including weekly temporary total disability benefits and permanent partial disability benefits representing a 17.5% disability of his lower back and a 15% disability to his upper right extremity (right shoulder). The City has challenged the propriety of a number of Mr. Schmatz' claims including one appeal to the Minnesota Supreme Court. A/1-1- .j • CJ Mr. James Prosser March 20, 1990 Page 2 Mr. Schmatz' current Claim Petition seeks permanent partial disability benefits in the amount of approximately $25,000.00 representing a 32% disability to his left shoulder along with a 15% simultaneous injury factor award owing under the "old" workers' compensation law. Claimant also seeks payment of various medical expenses including satisfaction of an intervention interest by MedCenters Health Plan in the amount of $3,063.73. In light of the Social Security Administration's recent award, the City of Richfield's exposure to Mr. Schmatz for future permanent total disability benefits is significant. Mr. Schmatz is a relatively young man with no prospects of finding any employment in the near future. We believe a full, final and complete settlement of this matter at this time would be in the City's best interest. Claimant initially offered to settle this case for $120,00.00, which represents recovery of the benefits alleged in his Claim Petition. and five years of future permanent total disability benefits. The final negotiated Stipulation for Settlement submitted herewith requires the City to pay the following amounts in consideration for a full, final and complete settlement of all claims by John Schmatz (except future medical expenses) arising from his March 9, 1982 accident: John Schmatz $71,000.00 MedCenters Health Plan 2,315.80 Buffalo Family & Specialty 479.00 Care Center Attorneys' Fees and Costs 60,929.00 TOTAL $80,723.80 As a result of Claimant's recent Social Security award, the City is entitled to certain past and future reimbursements from the Minnesota Special Compensation Fund under Minn. Stat. § 176.032. Of the $80,723.80 paid out by the City under the proposed Stipulation for Settlement, $38,134.82 will be reimbursed to the City from the Special Compensation Fund. The remainder of the settlement payments will be reimbursed to the City by the Workers' Compensation Reinsurance Association. We consider the proposed settlement reasonable and recommend that the City of Richfield accept the proposed Stipulation for Settlement in its entirety. 0 • Mr. James Prosser March 20, 1990 r' • STATE OF MINNESOTA WORKERS' COMPENSATION DIVISION Department of Labor and Industry 443 Lafayette Road St. Paul, Minnesota 55101 File No.: 472-62-2288 ---------------------------- John M. Schmatz, Employee, v. City of Richfield, Employer, and Self-Insured, Insurer, • and MedCenters Health Plan Intervenor. STIPULATION FOR SETTLEMENT c- r 6i ---------------------------- It is hereby stipulated and agreed among the', above-named parties and the Minnesota Special Compensation Fund, the same being the only parties in interest herein, as follows: 1. It may be taken as a fact that the above-named employee was in the employ of the City of Richfield on or about March 9, 1982, at an average weekly wage of $388.80 for a five-day week, entitling the employee to an initial compensation rate of $259.20 per week. 2. At all times material herein the City of Richfield was • self insured for worker's compensation liability in the State of Minnesota. 1 .a 3. On March 9, 1982, the employee sustained an injury to • his back and upper right extremity arising out of and in the course and scope of his employment with the employer herein and the employer had knowledge or due notice of said injury. 4. As a result of employee's injury of March 9, 1982, this self-insured employer has been paying temporary total disability benefits to the employee from the date of injury to the present, along with permanent partial disability benefits representing 17.5% permanent partial disability of the back as a whole and 15% permanent partial disability of the upper right extremity. Employer has also paid various rehabilitation and medical expenses on behalf of the employee, all of which are on file at the Workers' Compensation Division, File No. 472-62-2288. • 5. Incorporated herein and made a part of this Stipulation is the entire file of the Workers' Compensation Division and Office of Administrative Hearings, including all of the rehabilitation and medical reports contained therein. 6. Employee hereby represents to the Office of Administrative Hearings that he has recently been awarded Social Security disability benefits retroactive from August 12, 1985, and upon information and belief the Social Security Office has not taken a Workers' Compensation disability offset. 7. It is the claim and contention of the employee that he suffers a twenty-two percent (22%) permanent partial disability of his upper left extremity and that his work related injury of March 9, 1982 is a substantial and inseperable contributing cause • of said permanent partial disability. Intervenor MedCenters 2 Health Plan claims to have incurred medical expenses on behalf of • the employee in the amount of $3,063.73 for the care and treatment of said disability and is entitled to reimbursement from the self-insured employer. Employee also seeks payment of various unpaid medical expenses owing to Buffalo Family & Specialty Care Center, P.A. amounting to $479.00. 8. It is the claim and contention of the employer herein that employee's current disability to his upper left extremity did not arise out of or in the course of his employment with the City of Richfield and thus is not compensable under Minn. Stat. § 176.101 (1989). Employer also contends, based upon the complete files and records herein including the attached Social Security decision dated August 7, 1989, that employee has been permanently and totally disabled from sustained gainful employment since • March 9, 1982 and that said permanent and total disability shall continue into the foreseeable future. In light of employee's disabled condition, employer further claims and contends that all total temporary disability benefits paid to employee since March, 1982 should be deemed permanent total disability benefits under Minn. Stat. 5 176.101, Subd. 4 (1989), thereby entitling employer to offset the total disability benefits it pays to employee by any and all Social Security benefits the employee has received since August 1985 or is eligible to receive in the future. To date, said offsets have resulted in an overpayment of disability benefits by' employer of approximately $23,006.38 which may be credited against future . disability benefits owing to employee under the Minnesota Workers' Compensation statute. 3 Z'?? , • 9. Notwithstanding the respective claims and contentions of the parties herein, the parties hereby stipulate and agree to the following: a. that employee's permanent disability to his upper left extremity did not arise out of or in the course of his employment with employer and therefore is not a compensable injury under the Minnesota Workers' Compensation statute. b. that employee is permanently and totally disabled from sustained gainful employment, and that employee has been permanently and totally disabled since March 9, 1982, the date he was determined to be permanently and totally disabled by the Social Security Administration Office. C. that all temporary total disability benefits paid to employee since March 9, 1982 are deemed to be permanent total disability benefits for purposes of determining whether employer is entitled to a Social Security offset under Minn. Stat. § 176.101 Subd. 4 (1989). . d. that employer will pay Seventy-Seven Thousand Five Hundred Dollars ($77,500.00) to employee as a full, final and complete settlement of all past, present and future claims for disability and/or supplementary benefits owing under the Minnesota Workers' Compensation statute for injuries arising from employee's March 9, 1982 accident. Employer will continue to pay employee supplementary benefits of $269.00 per week until an award is filed with the Office of Administrative Hearings that is consistent with this Stipulation. e. that employer will pay $2,315.80 to Medcenters Health Plan as a full, final and complete settlement of its claim in this matter. f. that employer will pay $479.00 to Buffalo Family & Specialty Care Center, P.A. as a full, final and complete settlement of employee's claim for medical expenses currently outstanding with respect to the care, and treatment of his work-related injuries. g. that employer will pay $429.00 to the law firm of Olson & Roes, P.A. as a reimbursement for the costs it incurred on behalf of employee with respect to this matter. 4 1 h. that employer hereby waives any and all claims of an • overpayment of Workers' Compensation benefits made to employee, and specifically waives any right to a credit against the employee in the amount of $23,006.83 as a result of Social Security offsets the employer may be entitled to claim under Minn. Stat. § 176.101, Subd. 4 (1989). i. that by accepting the lump sum payment of $77,500.00, employee hereby waives any and all claims of whatever nature against the self-insured employer, whether past, present or future, for Workers' Compensation benefits that employee may be entitled to receive as a result of his work-related injury of March 9, 1982. This waiver specifically includes but is not limited to claims for temporary total disability benefits, temporary partial disability benefits, permanent partial disability benefits, permanent total disability benefits, supplementary benefits, rehabilitation benefits and all medical benefits except for those expressly identified herein. The only exception to this waiver is employee's right to receive future medical benefits for the reasonable and necessary treatment of his back and upper right extremity which is causally related to his March 9, 1982 injury. j. it is specifically agreed between the Special Compensation Fund for the State of Minnesota and the employer that the Special Compensation'' Fund will reimburse employer the sum of $38,134.82, for all past, present and future supplementary benefits owing under Minn. Stat. § 176.032 (1989). Employer 'acknowledges that before it is entitled to receive said reimbursement, it must pay the entire lump sum settlement to employee and file the necessary claim reimbursement documents with the Special 'Compensation Fund. 10. This Stipulation is made with the recognition that the self-insured employer is entitled to offset permanent total disability benefits by any and all Social Security benefits the employee has received or is eligible to receive in the future. It is the intent of the parties herein that the lump' sum payment of $77,500.00 for permanent total disability benefits made to employee pursuant hereto, represents only permanent total • disability benefits to which the Social Security offset has been 5 • applied. In arriving at this lump sum figure, employer and employee have taken into consideration and applied the Social Security offset provisions. 11. The parties to this Stipulation are unaware of any intervenors or potential intervenors, other than MedCenters Health Plan, that may have claims against the employee or self- insured employer herein for benefits paid to the employee or on his behalf as a result of his Workers' Compensation injury of March 9, 1982. 12. Employer expressly reserves and maintains any and all rights in subrogation and/or indemnity, pursuant to the Workers' Compensation Act or otherwise, including, but not limited to, those rights provided in Minn. Stat. 5176.061, relative to any right or recovery which the employee has, or may have, against any third party, person or entity. 12. The employee represents to the Worker's Compensation Division that he has retained to represent him in this matter the law firm of Olson & Roes, P.A. and that he has a contingent fee agreement with said law firm providing that 25% olf the first $4,000 in benefits obtained and 20% thereafter, subject to a statutory maximum of $6,500, shall be deducted from,the amounts due him and paid directly to Olson & Roes as agreed attorney's fees. Furthermore, if the attorney's fees herein' exceed any amount previously withheld to date, the balance shall be withheld pursuant to the 25/20 formula until a total amount of $6,500 has been paid to employee's attorney of record, Olson & Roes, P.A., arising out of claims for either permanent total or permanent partial disability benefits from and after March 9, 1982. 6 ,i The parties are mindful of the provisions of Minn. Stat. 176.081, Subd. 7, and there is no provision for partial reimbursement of attorney's fees. These parties also waive any ten-day period within which to object to attorney's fees. WHEREFORE, the parties pray that the Workers' Compensation Division will approve this Stipulation for Settlement and issue its award in conformity therewith, and that the Employee's Claim Petition will be dismissed. ;77 ZZ C",z Dated: 1990 John Schmatz, Emp o e OLSON & ROES, P.A. Dated: rC?. 1990 By _ACA4?? (A A? Cra' L r en ATTORNEY FOR EMPLOYEE Lakeland Professional Bldg. Annandale, Minnesota 55302 (612) 274-3044 Dated: 3 , 1990 HOLMES & GRAVEN, CHARTERED B Y Robert A. Alsop,, #1 4324 ATTORNEYS FOR EMPLO ER 470 Pillsbury Center Minneapolis, MN 55402 (612) 337-9300 Dated: -? 1990 MEDCENTERS HEALTH PLAN Y Mary ; e h Meyer Its 7 0 Dated: , 1990 MINNESOTA SPECIAL COMPENSATION FUND B Shirley ck • • 8