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12-19-83 agenda0 �J �j CITY OF RICHFIELD, MINNESOTA Office of City Manager Council Letter No. 426 Agenda December 19, 1983 The Honorable Mayor and Members of the City Council City of Richfield Council Members: Subject: Tabulation of Bids, Minutes, and Award of Contract for Richfield Lake On December 14, 1983 bids for muck excavation and granular fill at Richfield Lake were opened in accordance with legal re- quirements. The director of administrative services (represent- ing the city manager), the city clerk, director of community services, other city staff members and representatives of bidding firms were present. A copy of the bid minutes and tabulation is attached for council review. This contract provides for one component of the Richfield Lake Project. The primary work to be done under the contract includes creation of vistas or open water areas, the base matting for the pathway system around the marsh, including the engineering fabric, and some other preliminary earthwork. Other components of the project which are to be undertaken later through other contracts include the asphalt topping of the pathway, the improvements re- lated to the neighborhood park, and some landscaping. Fourteen bids were submitted. The apparent low bidder was Julian M. Johnson Construction Corporation with a bid of $95,909.60. In the staff review of the bids submitted there was an obvious error on one of the line items when comparing the bid submitted by Julian M. Johnson with the bids submitted by others. This was confirmed in a letter submitted by Julian M. Johnson, a copy of which is attached, which noted that contractor costs for grading and snow removal were not included in the bid estimate. It is recommended that the request for withdrawal of the bid be honored. The second apparant low bidder was D. H. Blattner and Sons, with a bid of $127,960. The bid has been checked for mathemati- cal errors and none were noted. Although city staff has not worked with D. H. Blattner on a city project, the staff is aware of some of the work performed by this company which appears to have been satisfactory. Some of the work related to the Richfield Lake area, but not directly with the pathway, is the removal of dead trees and doing some other tree /brush work such as trimming. Council Letter No. 426 -2- December 19, 1983 • It appears at this time that it may be in the best interest of the city to have the debris buried under the earth mounds created by the dredging for the vistas. This is being pursued with D.H. Blattner and Sons, and there is a possibility a change order to this contract would be coming in the near future. It is recommended that the city council take the following action: 1. Approve the bid minutes and tabulation. 2. Accept the withdrawal of bid by Julian M. Johnson Con- struction Corporation due to an obvious error. 3. Approve the attached resolution to award a contract for muck excavation and granular fill to D. H. Blattner and sons in the amount of $127,960. JGC /ej a 0 Rpapectf ul�.ly,.,submitted, John G. Cartwr4ght City Manager CITY OF RICHFIELD, MINNESOTA Office of City Manager Council Letter No. 425 Agenda December 19, 1983 The Honorable Mayor and Members of the City Council City of Richfield Council Members: Subject: Richfield /Bloomington Joint Powers Agreement Establishing a Water Management Organization At the July 25, 1983 study session, the council discussed the ramifications of the Metropolitan Storm Water Management Act. The council directed the staff to negotiate a joint powers agree- ment with the City of Bloomington to manage the storm water in the southeast corner of Richfield. This area drains into Wilson and Christian Ponds and is not presently a part of any water manage- ment organization. In addition, the council directed the staff to investigate the possibility of forming a joint powers agreement with Minneapolis to manage the storm water which drains to Wood Lake, Richfield Lake and Grass Lake.- The staff recommends that the attached Richfield /Bloomington Joint Powers Agreement be approved. Attached to this council letter is the joint powers agreement negotiated by the city staff. The principal elements of the agree- ment are as follows: 1. The city councils of the two cities will act as the management board for the water management organization. Bloomington has a seven member council and Richfield has a five member council; therefore, Bloomington has seven votes and Richfield five. There are two reasons for this disparity. First, Bloomington has a larger area in the water management organization; second, Bloomington is the "downstream community ". 2. A two - thirds vote is needed to approve operating budgets and capital improvement projects (eight votes). 3. To the extent possible, each city will be responsible for costs of capital improvements within its boundaries. 4. The organization staff support will be provided by the existing city staffs. • f JOINT POWERS AGREEMENT CITY OF BLOOMINGTON, MINNESOTA CITY OF RICHFIELD, MINNESOTA ESTABLISHING AND EMPOWERING THE RICHFIELD- BLOOMINGTON WATERSHED MANAGEMENT ORGANIZATION THIS AGREEMENT is made and entered into this 19th day of December 1983 by and between the CITY OF BLOOMINGTON ( "Bloom- ington "), a municipal corporation and political subdivision of the State of Minnesota, and the CITY OF RICHFIELD ( "Richfield "), a municipal corporation and political subdivision of the State of Minnesota. WHEREAS, a portion of each City lies within the geo- graphical area hereinafter referred to as the "Richfield- . Bloomington Watershed ", which watershed is illustrated and des- cribed on "EXHIBIT A ", attached hereto; and WHEREAS, Minnesota Statutes § 473.875 to 473.883, inclusive, require that there exist a watershed management organ - ization which will perform some or all.of the functions of a watershed district for the Richfield - Bloomington Watershed; and WHEREAS, each City has the authority to. manage surface waters within its boundaries pursuant to Minnesota Statutes §`447.075, and § 462.357, Subd. 1; and WHEREAS, each City may jointly exercise common authority by adopting a joint powers agreement pursuant to Minn- esota Statute 471.59; and WHEREAS, by means of a joint powers agreement, the cities may establish a water management organization pursuant to- M.S.A. 473.875 to 473.883, inclusive; and WHEREAS, each City is.desirous of jointly..creating a watershed management organization which would fulfill the mandates of Minnesota Statutes S 473.875 to 473.883, inclusive, with respect to the Richfield- Bloomington Watershed and which would otherwise manage the surface water within said watershed in order to achieve various goals with respect to natural water runoff and retention. NOW, THEREFORE, in consideration of the mutual under- takings herein expressed, the City of Bloomington and the City cf Richfield agree as follows: SECTION I ESTABLISHMENT OF WATER MANAGEMENT ORGANIZATION The Richfield- Bloomington Watershed Management Organi- zation is hereby established; the operation of the Organization shall be subject to the terms and conditions of this Agreement. SECTION II PURPOSE The purpose of this Agreement is to create a.Water- shed Management Organization which would fulfill the mandates of Minnesota Statutes S 473.875 to 473.883, inclusive, with respect to the Richfield - Bloomington Watershed and.which would otherwise manage natural water runoff and retention in order to achieve the following goals: • -2- (a) Reduce to the greatest practical extent the public capital expenditures necessary to control excessive volumes and rates of runoff; (b) improve water quality; (c) prevent flooding and erosion from surface flows; (d) promote groundwater recharge; (e) protect and enhance fish and wildlife habitat and water recreational facilities;.and (f) secure the other benefits associated with the proper management of- surface water within the Richfield- Bloomington Watershed. SECTION III DEFINITIONS • For purposes of this Agreement, the terms used herein shall have the meanings as defined in this section. Subdivision 1. The "Organization means the Richfield - Bloomington Watershed Management Organization established by thi s Agreement. Subdivision 2. The "Board" or "Board of Commissioners" means the governing body of the Organization. Subdivision 3. "Council" means the governing body of the 'City of Bloomington or the governing body of the City of Richfield. Subdivision 4. "Richfield- Bloomington Watershed" or "Watershed" means the geographical area described and /or illus trated on Exhibit "A" attached and made a part•of this Agreement. -3- Subdivision 5. "Commissioner" the means a member of . Board of Commissioners: Subdivision 6. "Cities" means the cities of Richfield and Bloomington. SECTION IV BOARD OF COMMISSIONERS Subdivision 1. The Organization shall be governed by a f Board of Commissioners - .composed of all the members of the City Councils of Richfield and Bloomington. Subdivision 2. Each Commissioner shall have one vote with respect to Board actions. Subdivision.3. Unless otherwise specified by this Agreement, substantive Board action shall be by a majority vote . of the entire Board. Subdivision 4. At its first organizational meeting,' or within a reasonable time thereafter,. the Board shall adopt bylaws not inconsistent with this Agreement concerning its pro- cedures, meetings, and other appropriate matters affecting the operation of the Organization, Such bylaws may be amended from time to time in either a regular or special meeting of the Board provided that notice of such proposed amendment has been given to each Commissioner at least ten (10) days prior to the meeting at which the proposed amendment will be considered. A.;two- thirds (2/3) majority vote of the entire Board shall be necessary to adopt or amend such bylaws. -4- Subdivision subject to the pri Subdivision and in January.of its Commissioners other officers as and affairs. Subdivision 5. All meetings of the Board shall be Dvisions of the Minnesota Open Meeting Law. 6. At the organizational meeting of the Board each year thereafter the Board shall elect from a chairman, a secretary.,a treasurer and such. it deems necessary to conduct its meetings 7. A majority of the entire Board shall constitute a quorum, but less than a quorum may adjourn a scheduled meeting. Subdivision 8. Each City may compensate the Commissioners it appoints, but the Commissioners shall not be compensated by the Organization or have expenses reimbursed by the Organization. Subdivision 9. Board recommendations regarding • operat- in g budgets and capital improvement projects shall re uir a two- thirds (2/3) majority vote of the entire Board. Subdivision 10. The Board shall maintain a business office-at 2215 West Old Shakopee Road, Bloomington, Minnesota 55431. ;All notices to the Board shall be delivered or served to such office. SECTION V POWERS AND DUTIES Subdivision 1. Except as otherwise qualified or modi- fied by this Agreement, the Organization, acting by its Board of Commissioners, shall have and perform all the powers and duties expressly set forth in and reasonably implied from Minnesota Statutes § 473.875 to § 473.883, inclusive. -5- Subdivision 2. The Organization may,.within the scope of this Agreement, accept gifts, apply for and use grants-or loans of -money or other property from the United States, the State of Minnesota, any unit of government or other governmental organizaton, or from any person or entity for the purposes des - cribed herein and may enter into any reasonable.agreement required in connection therewith; it may comply with any laws or regula- tions applicable thereto; and it may hold, use and dispose of such money or property in.accordance with the terms of the gift, grant, loan or agreement relating thereto.. Subdivision 3. To the extent of funds acquired by grant, donation,.or otherwise, the Organization may adopt an operating budget, enter into contracts and expend such funds. Any disbursements shall be made in accordance with the principles of Minnesota Statutes § 471.38 et seq. To the extent that the Organization lacks funds, how- ever, the Cities shall.directly bear the expenses of the Organ- ization and /or shall provide in -kind assistance (e.g. personnel, office or meeting space) to the Organization. Except for such capital improvements as are to be paid with.Organization funds.or via certification to the County pursuant to Minnesota Statutes § 473.883, the Cities shall also be responsible for the cost of any capital improvements. The Board shall determine how specific costs,personnel requirements, contracting and bid responsibilities, and other • n • • expenses and requirements shall be shared by the Cities. How- ever, to the extent possible, costs and responsibilities which canoe split geographically in a sensible manner shall be divided between the Cities on that basis Whenever personnel of the Cities is utilized by the Organization, such personnel shall remain the employees of their respective Cities for all purposes, including.salaries, benefits insurance, and workmen's compensation. No charges for the ser- vices of employees of the Cities shall be paid by the Organiza .tion unless expressly agreed upon by the Cities. SECTION VI DURATION Subdivision 1. The Organization shall continue in existence until the termination of this Agreement. This Agree- ment may be terminated by either party, upon one year's written notice to the other party, or at any time upon agreement of- both parties. Subdivision 2_.. In the event of the termination of this`Agreement and the dissolution.of the Organization, all improvements constructed pursuant to this Agreement shall.be- come the property of the party within whose boundaries the im- provement is located. Any unencumbered funds or other assets possessed by the Organization shall be distributed equally to the parties. Subdivision 3. Termination of the Agreement and disso- lution of the Organization shall in no way affect or terminate Richfield's presefit rights to dispose of its storm water through connectors to Smith Pond in Bloomington. SECTION VII EFFECTIVE DATE This Agreement shall be in full-force and effect on the date by which both Cities have.adopted resolutions approving said agreement. SECTION VIII ORGANIZATIONAL MEETING The Board'.s first meeting shall take place at Bloomington City Hall, 221,5 West Old Shakopee Road, Bloomington, Minnesota on the third Thursday of the month that occurs following a lapse of thirty (30) days after the effective date of the Agreement. SECTION IX MISCELLANEOUS Subdivision 1. Each party agrees to indemnify and hold harmless the other party for liability for damages for personal injury, death, or property damages occurring as a result of improvements or systems which are constructed solely within the boundaries of the indemnifying party. Subdivision 2. Unless specifically provided by this Agreement, nothing herein is intended to alter or amend any existing agreement between the - parties. -S- • • IN WITNESS WHEREAS, the Cities. have.hereunto set their hands the day.and -year first above written. Upon proper execution, CITY OF BLOOMINGTON this Agreement shall be - a legal and binding obliga- tion-.-.upon the City of Bloomington. By Mayor By: City Attorney City Manager [SEAL] Upon proper execution, CITY OF RICHFIELD this Agreement shall be a legal.and binding obliga- tion upon the City.of Richfield. By: Mayor B_ y: City Attorney City Manager [SEAL], -9- RICHFIELD — BLOOMINGTON CHRISTIAN PARK WATERSHED MANAGEMENT TO Th . St Q ._ AREA _a c m o cc J p WILSON 75 Th. St PARK W 76 Th. St. BLOOM. CORP. BOY. 5-494 RICHFIELD —BLOOMINGTON CORPORATE BOUNDARY " SMITH PARK POND 0 S t� 86 Th. St WRI HT'S LAKE - a oc a 0 90 Th. St. ci 0 . a W > H W 2 !N cy Q41 J J PLO p F- -: 5� v cr. a v 0 98Th. St._ AREA BOUNDARY • CITY OF RICHFIELD, MINNESOTA Office of City Manager The Honorable Mayor and Members of the City Council City of Richfield Council Members: Council Letter No. 424 Agenda December 19, 1983 Subject: Resolution Approving $925,000 Industrial De- velopment Revenue Bonds for Metro Sales, Inc. 1620 E. 78th Street At the November 28, 1983 city council meeting, the city council held a public hearing and approved a resolution giving preliminary approval to the issuance of Industrial Development Revenue Bonds in the amount of $925,000 for Metro Sales, Inc. Metro Sales, Inc. has proposed to construct a facility at 1620 East 78th Street. • Attached to this council letter is the final resolution approving this project and the issuance of these bonds. The city attorney's office has recommended that this resolution be acted upon prior to the December 31, 1983 sunset provision of the federal legislation pertaining to IDR Bonds. JGC /ej a • S ect u 1 L John G. Car City Manager itted, wright � 2 Council Letter No. 424 Agenda December 19, 1983 Subject: Resolution Approving $925,000 Industrial De- velopment Revenue Bonds for Metro Sales, Inc. 1620 E. 78th Street At the November 28, 1983 city council meeting, the city council held a public hearing and approved a resolution giving preliminary approval to the issuance of Industrial Development Revenue Bonds in the amount of $925,000 for Metro Sales, Inc. Metro Sales, Inc. has proposed to construct a facility at 1620 East 78th Street. • Attached to this council letter is the final resolution approving this project and the issuance of these bonds. The city attorney's office has recommended that this resolution be acted upon prior to the December 31, 1983 sunset provision of the federal legislation pertaining to IDR Bonds. JGC /ej a • S ect u 1 L John G. Car City Manager itted, wright CITY OF RICHFIELD, MINNESOTA Office of City Manager Council Letter No. 423 Agenda December 19, 1983 The Honorable Mayor and Members of the City Council City of Richfield Council Members: Subject: Purchase in Excess of $5,000 City Council Policy Resolution No. 6847 provides that the city council must approve the purchase of merchandise, materials, equipment or construction when the amount exceeds $5,000. There is one such item on the council agenda for December 19, 1983. Snowblower The city council at the December 12, 1983 meeting, authorized obtaining quotations for a snowblower which is provided for in the • 1984 budget. This blower is to be attached to a new sidewalk unit, also budgeted for 1984. Bids for the new sidewalk unit are scheduled to be opened December 20, 1983. It is not known at this time what type of unit will be purchased so the actual order- ing of the snowblower will need to be contingent upon the type of sidewalk unit purchased. Quotations received for the new snow- blower attachment, therefore, did not include the coupling unit. Quotations were requested from four vendors: McQueen Equip- ment, Bryan Equipment Company, Kromer Company and Waldon Company. McQueen and Kromer indicated they were unable to secure a blower the size needed for Richfield sidewalks. The Waldon Company quoted $9,050 for a 52" Snoblitz with a 30 horsepower Wisconsin engine, gas powered. Bryan Equipment quoted $9,472 for a Fair 60" powered by a 40 horsepower Slanzi diesel engine. It is the preference of staff that the quotation of Bryan Equipment Company be accepted as this machine has a larger engine and is diesel- powered. It is the opinion of staff that the gas powered unit would not operate as efficiently because of blowing snow, and the effects of the resulting wetness on the performance of the gas powered unit, which would not occur with the diesel powered unit. It is • of a Fair of $9,472. recommended that the city council authorize the purchase diesel powered blower from Bryan Equipment in the amount R s ct John G. City Manager CITY OF RICHFIELD, MINNESOTA • Office of City Manager Council Letter No. 422 Agenda December 19, 1983 The Honorable Mayor and Members of the City Council City of Richfield Council Members: Subject: Public Hearing, Consideration of Preliminary Resolution, Tax Exempt Financing, L /H /N On November 28, 1983 the HRA and the City Council met concurrent- ly and held a public hearing on a -housing plan and three housing programs. The hearing was held as part of the process for seeking below market interest money for housing construction. One of the programs approved by both the HRA and the City Council was a multi- family rental project to be part of the Market Plaza development for the Godfather Block. Following approval of • this program, both bodies adopted a motion establishing December 19 at 7:00 p.m. as the date and time for the public hearing. The pur- pose of the hearing is to consider the adoption of a preliminary resolution providing for the use of tax exempt housing revenue bonds for the construction of the rental project. Derrick Land Company is proposing to construct 150 housing units. The general characteristics of the project would be as follows: No. Bedrooms Area Rental 24% (36) 1 bedroom 660 sq. ft. $396/mo* 30% (45) 1 bedroom 720 sq. ft. 455/mo. 30% (45) 1 bedroom /den 850 sq. ft. 495/mo. 16% (24) 2 bedroom 950 sq. ft. 541/mo. *Projected rents based on 1983 dollars Twenty percent of the units (or 30 of the small, one bedroom units) would have rents affordable to families and individuals (elder- ly and non - elderly) with incomes which would qualify them for partici- pation in the Federal Section 8 Rental Assistance Program. It is important to note that tenants need not be participating in the Section 8 program, but that 20% of the units would be affordable to persons with incomes which fall within the program limits. At the present time, the Section 8 program income limits are $17,700 for one person and $20,200 for two persons. Incomes may be less than the amount stated, but cannot exceed them. Council Letter No. 422 -2- December 19, 1983 Fifty -five percent or 83 units will be available to tenants • with incomes of approximately $34,960 to $36,960. The remaining 37 units will be rented without regard to income limitation. This program will help assure the availability of housing to moderate in- come families or individuals. At this time, the availability of the affordable units for moderate income tenants is required by fed- eral law and regulations to extend approximately ten years after 50% of the units have been rented. The bonding authority being sought is $8,000,000, however, the final figure will probably be less than this amount. Unlike single family programs, multi - family rental projects may be funded locally, provided there is an approved housing plan and program. It is anticipated the plan and program approved locally on November 29, will be approved by the Metropolitan Council and MHFA by the end of January, 1984. Congress adjourned November 18th, without rescinding the law which "sunset" housing revenue bonds. Thus, after December 31, 1983, there will be no legal basis for the issuance of these bonds. However, the concensus is that early in 1984, Congress will enact legislation which again provides tax exempt financing for housing. It is likely, however, that restrictions will be imposed. To protect access to this financing for Market Plaza (Derrick), it is the opinion of the bond counsel that the attached preliminary resolution should be approved now so that there is a record of the city's in- tent to issue these bonds which may, in turn, protect it from Congress- ional restrictions imposed in 1984. • It is recommended that the City Council approve the attached resolution. JGC /ej a cc: Community Development Director • Wohn ectfu,Yly s mitted, E G. Ca ght C City Manager 7 0 RESOLUTION NO. RESOLUTION REL =%'G TO Ti. ISSUANCE OF REVENUE BCNDS PURSUANT TO MINNESOTA, STATUTES, C:iAPTF..R 462C, FOR = PURPOSE OF FINAITCING A MULTIFPiV,Y HCUSMIG DEUELOPZ%ENT BE IT RESOLVED by the City Council of the City of Richfield, Minnesota (the City), as follows: Section 1. Recitals. 1.01. Under Minnesota Statutes, Chapter 462C, as amended (the Act), the City is authorized to plan, administer, issue and sell revenue bonds or other obligations to make or purchase loans to finance one or more multifamily housing developments within its boundaries. 1.02. The Act provides that the City may plan, administer and make or purchase loans to finance one or more develcpren`ts of the kinds described in Subdivisions 2, 3, 4 and 7 of Section 462C.05 of the Act upon adoption of a program setting forth the information required by Subdivision 6 of Section 462C.05 of the Pict, after a public hearing held thereon and after approval thereof by the Minnesota Housing Finance Agency, as provided in Section 462C.01 of the Act on the basis of the considerations stated in Section 462C.01 of the 1.03. Representatives of Derrick Lard Cerny, (the Developer) have advised this Council of the Developer's desire to acquire certain land located in the City in the Lyndale- Hub- Nicollet Redevelopmeint Project Area, and to construct and equip therein a multifamily rental housing developnent consisting of approximately 150 dwelling units. Developrert and financing costs of the Project are presently estimated by representatives of the Developer to be approximately $8,000,000. 1.04. Representatives of the Developer have rea_uested that the City issue revenue bends or obligations (the Bonds) pursuant to the Act in such aggregate principal amount as may be necessary to finance all or a portion of the costs of the Project and make the proceeds of the Bonds available to the Developer for the acquisition, construction and equipping of the Project, subject to agree*rer:t by the Developer, or other persons or institutions, to pramtly pay the prin- cipal of, premium, if any, and interest on the Bonds. 1.05. The City has been advised by representatives of the Developer that conventional commercial financing of the costs of the Project is available only on a limited basis and at such high costs of borrowing that the nature anal extent of the Project and the economic feasibility of operating the Project would be significantly affected, but with the aid of municipal financing the Project can be constructed as designed and its operation made more economically feasible. 1.06. Neither the full faith and credit nor the taxing powers of the City will be pledged to the payment of the Bonds. Section 2. Ancroval and Authorization. 2.01. It is hereby found and determined that it would be in the best interest of the City to issue the Bonds under the provisions of the Act to finance the costs of the Project; the aggregate principal a=unt of the Bonds is Currently estimated to be $8,000,000. 2.02. The Project is hereby given preliminary approval by the City and the issuance of the Bonds for such purpose is hereby approved. The Bonds shall not be issued until the housing program described below has been reviewed and approved as required by the Act and until the City, the Developer and the purchaser of the Bonds have agreed upon the details of the Bonds and the pro- visions for their payment. The principal of, premium, if any, and interest on the Bonds, when, as and if issued, shall be payable solely from nropert_,, pledged to the payment thereof and shall not constitute a debt of the City within the meaning of any constitutional, statutory or charter limitation thereon. The City Attorney and other officers and employees of the City are authorized in cooperation with bond counsel to initiate preparation of such documents as may be appropriate to the financing of the Project, setting forth the detailed terms of the Bonds, the security therefor and the provisions for payment of the principal of, premium, if any, and interest on the Bonds in ccanpliance with applicable state and federal statutes and regulations. 2.04. M-ie City has prepared a program for the proposed development (the Program) which has been presented to this Council, and which contains informa- tion demonstrating the need for the Project, stating the method of financing proposed and that the development is to be acquired, constructed and equipped pursuant to Subdivision 3, Section 462C.05 of the Act. On November 29, 1983, after notice duly published, a public hearing was held on the Program, and the Program was adopted by the City pursuant to Section 462C.05, Subdivision 5 of the Act. 2.05. Under Section 462C.07, Subdivision 1 of the Pzt, the Citv rrav exercise, within its corporate limits, in the making cf the loan to finance the acquisition, construction, and equipment of the Project and in the issuance of the Bonds, any of the powers the Minnesota Housing Financing Agency may exercise under Minnesota Statutes, Chapter 462A, without limitation under the provisions of Minnesota Statues, Chapter 475. 2.06. The Developer has agreed to pay any and all costs incurred by the Citv in connection with the Project and its financing whether or not the Program is approved by the Minnesota Housing Finance Agency, whether or not the Project is completed, and whether or not the Bonds are issued. Passed by the City Council of the City of Richfield, Minnesota, this 19th day of December, 1983. John Hamilton, Mayor ATTEST: Sylvia K. Bergh, City Clerk