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12-19-77 agenda
CITY OF RICHFIELD, MINNESOTA Office of City Manager Council Letter 378 Agenda December 19, 1977 The Honorable Mayor and Members of the City Council City of Richfield Gentlemen: Subject: Hearing on Year IV, Community Development'Bl.ock Grant Program The city council has scheduled two public hearings on the city's application for Year IV Community Development Block Grant funding. The first such public hearing is scheduled for Monday, December 19, 1977, with the second hearing to be held on Monday, January 9, 1978. Inasmuch as the city is part of the Hennepin County Urban County application for the Community Development Block Grant monies, the hearings are technically being held as joint hearings with Hennepin County. The first hearing will be informational in nature, providing the council and interested residents an opportunity to review the history of the community development program, eligible and ineligible activities, and past activities which Richfield has undertaken with the Community Development Block Grant during the first three years of the program. Attachment P summarizes Richfield use of the block grant monies for Year I, Year 11 and Year III grant application. Attachments B through D describe the estimated breakdown for the Year IV Hennepin County entitlement, the application process, and the suggested process for development of the Community Development Plan. Hennepin County has estimated that Richfield will receive $361,692 for Year IV. This sum is approximately $20,000 more than the city received in Year III and nearly four times the amount the city received during the first year of the program, October, 1975 to September, 1976. Year IV will run from August, 1978 through December, 1979. Council Letter 378 - 2 - December 19, 1977 The first three years of the Community Development program were funded in accordance with the Community Development Plan. This plan was adopted by the city council in 1975, and amended to reflect program modifications made for the Year II and Year III grant application. It will be necessary for the city council to approve another Community Development Plan for Year IV programs. This plan will be drafted by the staff after the December 19, 1977 public hearing and finalized after the January 9, 1978 hearing. The final Community Development Plan will be presented to the council at the January 23, 1978 city council meeting. A major change which could affect the city's Year IV use of the Community Development Block Grant is an increased emphasis on projects which will provide significant benefit to' low and moderate income people. Exceptions, to this rule are activities which would provide direct benefits to low and moderate income persons, such as housing rehabilitation assistance, activities for the handicapped, and certain planning or administrative activities. The regulations also provide that the city may use up to twenty -five percent of the grant.which is left over after any funding for such excluded activities is substracted for efforts which are necessary to carry out the Community Development Plan. In preparation for the public hearings on this subject, adequate legal notices have been published in the official city newspaper, and a notice of the January 9, 1978 hearing is included in the city's quarterly newsletter which will be mailed to all residents within the coming week. Letters have also been sent to all citizen advisory commissions offering an opportunity for those groups to make suggestions regarding use of the funds. It is the opinion of the staff that these and other efforts made by the city meet the requirement of the federal regulations for citizen participation in the development of the Community Development Block Grant application. It is recommended that the city council hear testimony at both the December 19, 1977 and the January 9, 1978 public hearings. Final action on authorizing prepara- tion of the Community Development Plan should be taken at the January 9, 1978 hearing. Respectfully submitted Wayne S. Burggraaff City Manager WSB /jkl cc: Department Directors Senior Citizen Center Federal CD Local Water Backwash System Federal CD Local Housing Rehabilitation Federal CD Local New Home Program Federal CD Local Park Development Federal CD Local TOTAL FEDERAL CD TOTAL LOCAL ------------------- - - - -t- T 0 T A L EXHIBIT A S U M M A R Y Program Year I Program Year II Program Year III Oct 75 -Sept 76 Oct 76- July 77. July 77= July 78 $ 50,000 $ 10,500 $ 66,000 $ 30,000 50,531 $ 10,000 $ 8,855 19,741 $ 98,855 $ 136,272 $ 235,12.7 --------------- _.---- •F---------- -- -- -- -b $ 37,500 $ 50,000 $ 92,842 15,000 $ 50,000 $ 108,114 $ 246,000 35,000 86,000 $ 206,114 $ 338,558 $ 35,000 $ 151,000 $ 241,114 $ 387,500 Communities 3,060,000 Urban Hennepin County 340,000 100% 3,400,000 ESTIMATE Of YEAR IV ►►RBAN HENNEPIN COUNTY EXHIBIT B BLOCK GRANT APPLICATION ,-- 1970 Est. 197 1970 Overcrowded Planning 1973' Poverty Housing % of Target Pop. % Persons % Units % Allocation Amount Brooklyn Park 31,498 8.56 1,057 8.79 630 11.50 9.41' 287,946 Champlin 6,776 1.84 280 2.33 116 2.12 2-.15 65,790 Corcoran 1,716 .46 206. 1.71 56 1.02 1.23 37,638 Crystal 31,863 8.66 1,170 9.73 742 13.55 10.41 318,546 Dayton 2,784 .76 1 93 .77 77_ 1.41 .93 28,458 Deephaven 3,854 1.05 183 1.52 42 .77 1.22 37,332 Eden Prairie 8,203 2.23 303 2.52 130 2.37 2.41 73,746 Edina 46,703 112.69 1,166 9.69 196 3.58 8.91 272,646 Excelsior 2,670 .73 157 1.31 41 .75 1.03 31,518 Golden Valley 23,113 6.28 560 4.66 244 4.46 5.02 153,612 Greenfield 951 .26 79 .72 30 .55 .56 17,136 Greenwood 571 .16 29 .24 5 .09 .18 5,508 Hanover 107 .03 27 .22 2 .04 .13 3,978 Hassan 892 .24 75 .62 37 .68 .54 16,524. Independance 2,066 .56 167 1.41 40 .73 1.03 31,518 Long lake 1,624 .44 14 .12 27 .49 .29 8,874 Loretto 333 .09 12 .10 12 °.22 .13 3,978 Maple Grove 8,556 2.32 265 2.20 158 2.89 2.40 73,440 Maple Plain 1,237 .34 50 .42 25 .46 .41 12,546 Medina 2,482 .67 116 .96 69 1.26 .96 29,376 Minnetonka 38,874 10.56 1,154 9.60 432 7.89 9.41 287,946 Mtka. Beach 571 .16 49 .41 3 .05 .26 7,956 Minnetrista 2,892 .79 157 1.31 63 1.15 1.14 34,884 (Mound 8,664 2.35 463 3.85 160 2.92 3.24 99,144 New Hope 23,696 6.44 631 5.25 462 8.44 6.34 194,004 Orono 6,769 1.84 278 2.31 77 1.41 1.96 59,976 Osseo 3,120 .85 217 1.80 68 1.24 1.42 43,452 Plymouth 24,083 6.54 338 2.81 290 5.30 4.36 133,416 Richfield 45,540 12.37 15281 10.65 747 13.64 11.82 361,692 Robbinsdale 15,947 4.33 591 4.91 246 4.49 4.66 142,596 Rogers 529 .14 53 .44 19 .35 .34 10,404 St. Anthony 7,651 2.08 142 1.18 90 1.64 1.52 46,512 St. Bonifacius 666 .18 35 .29 18 .33 .27 8,262 Shorewood 4,211 1.14 236 1.96 71 1.30 .1.59 48,654 Spring Park 1,457 .40 112 .93 11 .20 .62 18,972 Tonka Bay 1,448 .39 117 .97 15 .27 .65 19,890 Wayzata 4,088 1.11 154 1.28 25 .46 1.03 31,518 368,135 12,027 5,476 Communities 3,060,000 Urban Hennepin County 340,000 100% 3,400,000 URBAN HENNEPIN COUNTY & COOPERATING COMMUNITIES COMMUNITY IMPROVEMENT PROJECTS & HOUSING GOALS CITIZENS, LOCAL GOVERNING BODY APPLICATION PROCESS IMPLEMENTATION OF 1 YEAR ACTION PLANS -HUD COMMUNITY URBAN DEVELOPMENT HENNEPIN PROJECTS COUNTY CDBG APPLICATION PUBLIC HEARING URBAN COUNTY APPLICATION SUBMIT TO HENNEPIN COUNTY COMMUNITY 1_ DEVELOPMENT FACTION YEAR PROJECTS PLAN 2ND PUBLIC 3 YEAR PROGRAM 1ST DETERMINE PUBLIC COMMUNITY HEARING DEVELOPMENT HOUSING NEEDS EXHIBIT C ENVIRONMENTAL REVIEW EQUAL OPPOR. LABOR STAND. RELOC. & ACQ.• HOUSING HUD REVIEW GOALS A -95 REVIE�J REFINE COMMUNITY ACTION PLANS & 3 YR. PROGRAM HOUSING CDBG REG'S. ASSISTANCE -51% PLAN - DIRECT BENEFIT - EXCEPTIONS URBAN COUNTY STRATEGY STATUTORY PROVISIONS OFH&CD ACT '77 Gub'de ucdirt !mn;,'LY Dave'opment of Hennepin County It is the-intent of this handbook to furnish the information needed to formulate a successful Community Development'Block Grant Program. The Community Development process is not simple, but this document is intend- ed to help provide an understanding of the basic workings of this process. The organization used in this report is a question - answer format. By answering the questions, the most important aspects of the Community Devel opment Program are highlighted. WHAT IS THE PURPOSE OF THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM? The Community Development Program originated from the 1974 Housing and Com- munity Development Act. Whereas, most prior Housing and Urban Development (HUD) funds were transfered to local municipalities via catergorical grants (model cities, urban renewal, open space, and water /sewer), after 1974 a single Community Development Block Grant has been transfered to participants giving the applicants certain local discretion as to funding priorities. Coupled with the Community Development Block Grant portion of the 1974 Act are new guidelines and policies promulgated for federally assisted housing. In effect, while all old federal housing programs are diminished, a totally new housing program has been initiated. The primary objective of the Community Development Program is th._� develop- ment of viable urban communities, including decent housing, a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income. All other eligibility criteria (see below) are subordinant to this requirement that program efforts be directed toward meeting the needs of the persons of low and moderate income. Consistant with this primary objective, the Federal assistance is provided for the sup- port of development activities which are directed toward the following: - The elimination of slums and blight and the deterioration of poverty and neighborhood facilities of importance to the welfare of the com- munity. - The elimination of conditions which are detrimental to health, safety, and public welfare, through code enforcement, demolition, rehabili- tation assistance and related activities. - The conservation and expansion of the nation's housing stock in order to provide a decent home and a suitable living environment for all persons, but principally those of low and moderate income. - The reduction of the isolation of income groups within communities and the promotion of an increase in the diversity of neighborhoods through the deconcentration of housing opportunities for persons of lower income. I UNDERSTAND THE CITY IS PARTICIPATING IN THE HENNEPIN COUNTY JOINT POWERS AGREEMENT. WHAT IS THE SIGNIFIGANCE OF THIS AGREEMENT AND THE CONCEPT OF AN URBAN COUNTY? In order to provide additional community development and housing assistance programs for its residents, the city has entered into a joint powers agree- ment with Hennepin County and 36 other municipalities to submit an appli- cation for assistance to the Department of Housing and Urban Development (HUD) under the Urban County Community Development Block Grant Program. An Urban County is defined as any county within a metropolitan area which has a population of two - hundred thousand or more (excluding the population of metropolitan communities therein). Because of this urban county desig- nation, Hennepin County is "entitled" to receive Community Development Block Grant funds according to a federal formula which distributes money according to population, the extent of poverty, and the extent of housing overcrowding. As an Urban County the County of Hennepin is able to provide funding assis- tance to these communities which have elected to participate in the program and who's proposed activities are in agreement with the Urban Hennepin County Community Development strategy. WHAT ACTIVITIES MAY BE FUNDED THROUGH THE COMMUNITY DEVELOPMENT PROGRAM? The following activities are eligible for funding with Community Development Block Grant funds when it can be statistically shown to principally benefit low and moderate income persons. As defined in the revised program regulation to principally benefit low and moderate income persons, 51% of the population being served by a project must reside in households having a gross income of less than $15,520. BASIC ELIGIBLE ACTIVITIES Grant assistance may be used for the following activities: A. Acquisition of real property (including air rights, water rights, and other interests) which is: - Blighted, deteriorated, deteriorating, undeveloped or inappropriately developed as pursuant to State and local laws; - Appropriate for rehabilitation or conservation activities; - To be used for the provision of public works, facilities and improve- ments eligible for assistance under this subpart; or - To be used for other public purposes, including the conversion of land to other uses where necessary or appropriate to the community development program. B. Public facilities and improvements. Acquisition, construction, reconstruction, rehabilitation or installation (including the execution of architectural design features and similar treatments intended to enhance the esthetic quality) of only the following public facilities and improvements: - Senior centers, excluding facilities whose function is residential care of a 24 -hour basis. - Parks, playgrounds and other recreational facilities designed for participation. - Centers for the handicapped, not limited to recreation, education, health care, social development, independent living, physical re- habilitation and vocational rehabilitation; but excluding facilities whose function is to provide residential care on a 24 -hour basis for the eligible. - Neighborhood facilities. Facilities of either a single purpose or' multipurpose nature designed to provide health, social, recreational or similar community services primarily for residents of the neigh- borhood service area. - Solid waste disposal facilities are those physical parts of solid waste management systems commencing at and including the sites or sites at which publicly or privately ovm ed collectio►S-vehicles must be located in or serve comprehensive heighborhood revitalization areas. - Parking facilities. Such facilities must be located in or serve comprehensive neighborhood revitalization areas. - Street improvements. Streets, street lights, traffic signals, signs, street furniture, trees, bridges, and culverts; but excluding limited access ways and their appurtenances. - Pedestrian malls and walkways. - Flood and drainage facilities; in cases where assistance for such facilities has been determined to be unavailable under other Federal laws or programs. C. Clearance activities. Clearance, demolition and removal of buildings including movement of structures to other sites. D. Public services. Provision of public services which are directed toward improving the community's public services and facilities, including those concerned with employment, crime prevention, child care, health, drug abuse, education, welfare or recreational needs and which are directed toward coordinating public and private devel- opment programs. E. Interim assistance. Interim assistance to alleviate harmful con - ditions where immediate public action is determined by the appli- cant to be necessary, including: - The repairing of streets, sidewalks, parks, playgrounds, publicly owned utilities and public facilities. - The in:provement of private properties to the extent necessary to eliminate dangers to public health, safety or welfare; - The establishment of temporary public playgrounds on vacant land. - The execution of non - routine garbage, trash and debris removal, street cleaning, snow removal and similar activities. F. Removal of architectural barriers. Projects directed to the removal of material and architectural barriers -in publicly and privately owned buildings. ELIGIBLE REHABILITATION AND PRESERVATION ACTIVITIES. A. Rehabilitation of public residential structures. Rehabilitation of publicly owned or acquired properties for use or resale in the provision of housing. B. Public housing modernization. Modernization of publicly owned low income housing C. Rehabilitation by non - profit entities.. Acquisition and rehabilitation of properties by private non - profit entities for use or resale in the provision of housing. D. Rehabilitation materials. Provision of building materials to homeowners or tenants for rehabilitation of properties. E. Rehabilitation financing. The financing of rehabilitation of privately owned residential, non - residential, and mixed -use properties through provision of grants, loans, loan guarentees and interest supplements. F. Code enforcement. Code enforcment in designated comprehensive neighborhood revitalization areas. G. Historic preservation. Rehabilitation, preservation, restoration and acquisition of historic properties, which are those sites or structures that are either listed in the National Register of Historic Places, list - ed in a State Inventory of Historic Places, or designated as a State or, local landmark or historic district. ELIGIBLE ECONOMIC DEVELOPMENT ACTIVITIES. Grant assistance may be provided for the following development activities which are directed toward the alleviation of physical and economic distress, through stimulation of private investment, community revitalization and ex- pansion of economic opportunities for low and moderate income persons. ELIGIBLE ACTIVITIES BY PRIVATE NON - PROFIT ENTITIES, LOCAL DEVELOPMENT CORPORATIONS,,OR SMALL BUSINESS INVESTMENT CORPORATIONS. Applicants may provide block grant funds for a number of neighborhood revitalization and economic development activities set forth in this section to be carried out by a private non - profit entity, local development corporation, or Small Business Investment Corporation. ELIGIBLE PLANNING, URBAN ENVIRONMENTAL DESIGN, ENVIRONMENTAL STUDIES AND ADMINISTRATIVE COSTS. Grant assistance may be used for planning, design, environmental and admin- istrative costs. INELIGIBLE ACTIVITIES Any type of activities not described above is ineligible. The following list is illustrative and does not constitute a complete list of all ineligible activities. Public facilities not specifically mentioned in the list of eligible activities such as: - Facilities for the general conduct of government, such as city hails, police stations and other buildings used predominantly for municipal purposes. - Stadiums, auditoriums, sports arenas, concert halls, cultural and art centers and similar facilities which are used by the general public primarily as spectators or observers, except that cultural, art museum, library and similar facilities may be undertaken as part of a neighborhood facilities project. - Schools generally, but excluding neighborhood facilities or senior centers in which classes in practical or vocational activities(such as first aid, homemaking, crafts, etc.) may be taught. Hospitals, nursing homes and other medical facilities, exce r pt for a ' neighborhood facility or senior center in which health services are part of the services offered. - Operating and maintenance expenses in connection with community services and facilities are not eligible, except for the public services and interim assistance described ineligible activities. Examples of ineligible activities include maintenance and repairs of water and sewer, parking facilities and the salaries of staff operating such facilities. - Except for costs incurred in carrying out community development programs, expenses required to carry out the general responsibilities of the local government are not eligible. - Partisan political activities such as expenditures for-use of equipment or premises for political purposes, sponsoring or conducting candidates' meetings, engaging in voter registration (except if it is part of a community - wide registration drive sponsored by the lccal unit of government). - Construction of new housing. - Generally, no funds may be spent for direct income payments for housing or for other purpose, such as payments for income maintenance and housing allowances. IS IT TRUE THAT THE DEVELOPMENT OF A THREE -YEAR COMMUNITY DEVELOPMENT PLAN SUMMARY IS REQUIRED AS PART OF APPLICATION PROCESS? Yes, the Community Development application is to include a three -year community development plan which is developed within the context of the Urban County Community Development strategy -as 1^eflected in the needs and long term objectives statements. The community's three -year community devel- opment plan will comprise the prr,ram's short term objectives. The short term objectives must identify a program which is designed to assist low and moderate income persons or eliminate slums and blight. The community development program must include the activities to be undertaken to meet the stated development needs and objectives together with the estimated costs and indicate other possible sources of funding. WHAT IS A HOUSING ASSISTANCE PLAN? Along with a Community Development three -year plan and identification of pro- posed funding priorities, a third necessary element of the application is the Housing assistance plan. The Housing Assistance Plan includes an inventory of the Urban County's housing stock and housing needs and includes both a one year plan and three year housing assistance goals to address these needs. These goals might take the form of new housing, rehabilitation or rental assistance through federal, state or local program efforts. WHAT IS THE RELATIONSHIP BETWEEN THE HOUSING ASSISTANCE PLAN AND THE COMMUNITY DEVELOPMENT BLOC{ GRANT PROGRAM? The relationship between the Housing Assistance Plan and the Block Grant Program is a direct one. It is the intent of the federal law to tie the cotrcnunity's housing plan to the Community Development grant so that com- munities will give priority to housing related projects. The three ele- ments of the Housing Assistance Plan are designed to provide a community with a planning document which inventories and analyzes housing conditions, identifies housing needs and sets short -term and long -range subsidized housing goals. HOW DOES THE ACT PROVIDE FOR CITIZEN PARTICIPATION? Prior to submitting its application the cooperating unit of local govern- ment is required to: (a) Provide citizens with adequate imformation concerning the amount of funds available for proposed community development and housing activities, the range of activities that may be undertaken, and other important program requirements. (b) Hold at least two public hearings to obtain the views of citizens on community development and housing needs, and; (c) Provide citizens an adequate opportunity to participate in the development of the application and in the development of any revisions, changes, or amendments. In order to ensure appropriate citizen participation in the application process the required activities should be initiated prior to the making of any decision related to use of the community's share of the Block Grant Funds. The following are suggested methods which could be employed to comply with the citizen participation requirements: 1. News releases 2. City -wide mailing 3. Mailing to community interest groups 4. Establishment of Citizen Advisory Committees 5. Community news letter 6. Distribution of public hearing announcements WHAT OTHER REQUIREMENTS MUST BE MET TO BE IN COMPLIANCE WITH THE ACT? The Chief Executive office must certify in writing that local unit of general government will comply with a number of federal government as- surances. (Hennepin County staff will provide administrative and other assistance to communities to meet these responsibilities). The city must certify that it will comply with the following: 1. The program will be conducted and administered in conformance with the Civil Rights Act of 1964 and 1968. 2. Prior to submission of its application, the. city has adequately provided for citizen participation in the development of the application. (See question above). 3. The applicant will provide fair relocation payments and assistance to parties displaced as a result of any Community Development funded acquisition of real property and meet all other requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. 4. The applicant will assume legal resopnsibility for environmental reviews and comply with provision of Federal Executives Order relating to flood hazards, flood prevention, and water pollution control. 5. The applicant will administer and enforce the labor standards requirements as set forth in the Act. 6. The Community Development Program will give maximum feasible priority to activities which will benefit low or moderate income families of aid in the prevention or elimination of slums or blight. These administrative responsibilities may require considerable staff time and expense and the Program budget should allow sufficient funding to cover these expenses. WHAT FAKES FOR A GOOD COMMUNITY DEVELOPMENT PROGRAM? 1. An attempt to identify and understand major community needs and priorities, particularly those affecting low and moderate income persons. 2. Maximum citizen participation in all stages of the decision - making process. 3. An understanding of program regulations and responsibilities. 4. A careful analysis of alternatives to determine how Program funding can best be used to address community priorities with - in the context of the Community Development Program purposes. Since no community will receive enough money to fund all needed activities, a major purpose of this process is to identify the one or two most impor- tant priorities. 0 4J CITY OF RICHFIELD, MINNESOTA Office of City Manager The Honorable Mayor and Members of the City Council City of Richfield Gentlemen: Subject: Proposed Swimming Pool Fee Schedule i/ Council Letter No. 377 Agenda December 12,- 1977 The purpose of this council letter is to submit a proposed fee schedule for use of both the city swimming pool and the enclosed school pool at West Junior High School during the .summer swimming season. .During the 1978 city budget hearings, the city council discussed the desirability of establishing a single fee schedule for use of both pools. The city council asked the staff for a financial report on both operations for the first three quarters of 1.977. This information has been made available to both the city council and the Park and Recreation Advisory Commission. The city council also asked the Park and Recreation Advisory Commission to hold a hearing and make a recommendation to the city council for a 1978 fee schedule which would be the same for both the city pool and the West Junior High pool. The council requested that this recommendation be submitted so that a decision could be made prior to the end of the year. Background From 1963 through 1975, the City of Richfield operated an outdoor., municipal swimming pool during the summer months. A variety of instructional programs were offered there, as well as general open swimming on a season ticket basis. Then, in 1976, the city also began sponsoring both instructional and open swimming programs at the two indoor school district pools. Admission to the open swimming sessions at the indoor pools was included in the season ticket for the summer of 1976. The 1976 summer season ticket cost $20/21 for Richfield families, and $1.5/16 for •indi- vidual Richfield residents and provided admittance to any open swim session at any pool -- indoor or outdoor. The revenues and expenditures for the overall (indoor- outdoor) city sponsored swim program show a $18,461 deficit for 1976, of which approximately $13,000 appeared to be attributable to the indoor pool program. This deficit occurred because, T �► Council Letter 377 - 2 - December 12, 1977 although the costs of operating the indoor pool are higher than costs to operate the outdoor pool, the admission to the indoor pool was the same as that for the outdoor pool. The season ticket prices had been established at the level necessary to operate the outdoor pool program in accordance with budget allocations and were not changed when the decision was made to also operate the school pool. In 1977, the city council expressed a desire to continue providing a season ticket which would admit the holder to either pool, while also expressing concern with the large deficit that incurred in 1976. For 1977, the council established a dual season ticket program, with a $20/21 family ticket providing admission only to the outdoor pool and a $32 family ticket which could provide admission to open swim sessions at either the indoor or the outdoor pool. While this system provided for some additional revenues to offset the higher expenses of operating the indoor swimming program, the council expressed interest in exploring the feasibility of again establishing a single season ticket fee that would cover the cost of both pool operations in 1978. Recommendation The Park and Recreation Advisory Commission held a public hearing on November 15 for the purpose of receiving testimony from residents on how swimming pool fees should be established. Five Richfield residents participated in this public hearing. All endorsed the concept of providing a single fee season ticket that would provide ad- mittance to either pool. knowing that one single ticket fee would have to be higher than the 1977 ticket fee for the city pool. Accordingly, the staff and commission have. developed the following proposed schedule for the 1978 summer swimming program fees: Resident Family Non - Resident Family Resident Single Non - Resident Single Tickets Purchased Prior to Tune 10 $28.50 40.00 18.50 25.00 Tickets Purchased After Tune 10 $29.50 40.00 19.50 25.00 The following considerations and assumptions were used in developing this recommendation: 1. The council and resident's expressed interest in providing a single season ticket that will permit the holder to swim in either pool; 2. The council's previously expressed policy that fees should be established at a level sufficient to cover expenditures. Although the experience of the past two years has found the pool revenues to be insufficient to cover the costs, the swimming pool over the life of the program has not been a financial burden to the city. The proposed 1978 fees have been based generally on total expenditures for the overall summer program, less revenues produced from other sources. The proposed schedule is estimated to bring in about the same L . t. Council Letter 377 - 3 - December 12, 1977 ticket revenues as received in 1977 assuming no major change in such areas as weather and actual ticket sales. 3. The number of ticket sales anticipated for 1978 is assumed to be the same as ticket sales in 1977, although. season ticket sales have been decreasing over the past four or five years. No changes are being proposed for the indoor swim programs being offered during the fall, winter and spring. This program is funded by a 50� per person hourly admittance charge and, although it is difficult to predict with the rather limited experience so far, it appears that this program will be self - sustaining. Summary At the close of the Park and Recreation Advisory Commission hearing the commission directed the department staff to prepare a single fee schedule which would generate approximately the same amount of ticket revenue as requested in 1977. This action meant that the 1978 fee would be less than the $32 1977 fee for West Junior High pool but higher than the $21/22 city pool ticket for 1977. By telephone vote , commission members approved the fee schedule proposed earlier in this council letter on a vote of 5 to 1 with the other three commission members unavailable. The dissenting voter expressed concern that relatively few people had attended the hearing. It is the recommendation of the Acting Park and Recreation Director, in which I concur, that the council adopt the schedule of fees supported by the Park and Recrea- tion Advisory Commission as proposed in this council letter for the 1978 city summer swim program. Respectfully submitted, S . Wayne S . Burggraaff City Manager WSB /jkl cc: Acting Park & Rec Director Finance Director y CITY OF RICHFIELD, MINNESOTA Office of City Manager Council Letter No. 376 __- -Agenda-December--12,-1977 The Honorable Mayor and Members of the City Council City of Richfield Gentlemen: Subject: Renewal of On -Sale and Sunday Liquor Licenses, Left Guard, Inc. At the November 28, 1977 city council meeting, the city council set December 12, 1977 as the date for a public hearing on the request for renewal of the on -sale and Sunday liquor licenses issued to the Left Guard, Inc. , 7717 Nicollet Avenue. The Left Guard, Inc. , is doing business at that location as ChiChi's and Maximil- ian' s . The application for renewal of this license was submitted by Mr. Marno McDermott, President for the corporation. The other member of the corporation is listed as William Max McGee, Vice - President and Secretary. The application was submitted within the prescribed time frame and was properly verified by the city clerk in accordance with ordinance requirements. All necessary information including an accountant's statement, surety bond, insurance certificate, political contribution certificates, and license fees have been filed along with the applica- tion. The present on -sale and Sunday liquor licenses for the Left Guard, Inc. will expire December 31, 1977. The current renewal application is for a seventh renewal by he present owners, who received their first license on July 24, 1972. Application Tnvestigation In accordance with the ordinance, the public safety director has made an investigation of information required by Section 11.06, subdivision 4 of the on- sale liquor ordinance. The public safety department report indicates that there have been changes during the past year in the businesses operated by the Left Guard, Inc. , although the corporate structure has remained unchanged. The corporation opened Chi Chi's Council Letter No. 376 -2- December 12, 1977 in August. of 1976, although part of the restaurant remained open as the Left Guard until early summer, 1977. That portion of the operation was closed for several weeks and reopened in mid - summer as Maximilian's of Mexico. However, the actual licensee will be the same, since the license is granted to-the corporation, and the corporate structure has not been changed. No ordinance violations have been recorded against either Chi Chi's or Maximilian's within the past year. There were 27 reported police incidents during the year. In each instance, the management of the establishment were cooperative with thepublic safety department in attempting to resolve the problems, most of which involved customers. A copy of the report from the police investigation from the public safety director commenting on the police investigation of this application for renewal is attached. The detailed incident reports are not attached due to volume of pages, but are available for review in the city manager's office. The public safety department has identified a possible problem relating to the manager of the applicant's establishments. Although the application names Mrs. Marilyn Glynn, a Richfield resident, as the manager, the police investi- gation revealed that Mrs. Glynn is actually working at the Left Guard corporate offices in Bloomington. The on -site manager appears to be Ms.. Mary Ann Bardot, a Bloomington resident. Richfield city ordinance requires that the manager of a licensed liquor establishment be a Richfield resident. The applicants have been informed of this apparent discrepancy relating to their manager. Accountant's Report The on -sale liquor ordinance requires that the applicant file with the city a statement made by a certified public accountant which shows the total. gross sales and the total food sales of the preceding 12 month period. This informa tion, together with a comparison of the previous year, is as follows: Total Sales Food Sales % of Food Sales to Total % of Liquor Sales to Total 12 Months Ending October 31, 1976 $1,519,452.13 619,013.79 40.7% 59.3% 12 Months Ending October 31, 1977 $2,.773,597.51 1,166,383.15 42.05% 57.95% The purpose of obtaining this information is that the state statutes require the serving of food be a principal part of the business of a restaurant which has an on -sale liquor license. Council members will recall that originally the city ordinance included a definition of the phrase "principal part of business, " stating that more than 50% of the gross retail sales of licensed premises must be derived from the sale of food. That definition was deleted in 1971, .leaving only the statutory requirement which does not include a definition of the phrase. The city attorney has advised that "principal part of the business" may be Council Letter No. 376 -3- December 12, 1977 interpreted to refer to percent of gross sales, but also to such things as the amount of investment necessary to serve food, compared to the serving of beverages, or the number of employees engaged in the preparation and serving of. food compared with beverages; or the amount of space provided for the pre- paration and serving of food as compared with beverages. In short, the statute could be defined in a number of ways and in no way infers that the definition must be limited to a percent of gross retail sales. The data for 1976 is from operation of the former Left Guard Restaurant, while the 1977 food and liquor sales primarily occurred in ChiChi's and Maximilian's. Health and Safety Regulations Various improvements dealing with health and safety regulations have been required of the Left Guard, Inc. over the past years. In addition, routine environmental health inspections and fire prevention inspections are conducted at the establishment. At the present time the fire division of the public safety department reports that Left Guard, Inc. has complied with all the fire code regulations, and the environmental health department also reports that the applicant is in compliance with applicable health and safety laws. Off- Street Parking Contract Provisions The original off- street parking contract for Left Guard, Inc. was approved by the Richfield City Council on June 12, 1972. The parking contract was amended in December, 1975, and the applicant is currently completing the work necessary to complete execution of that amended contract. Miscellaneous Information The applicant has filed the necessary political contribution declarations indicating that officers of the corporation have not made any political contrib- utions during the past year. The city assessor reports that the following information concerning market value and taxes reflect that data as it appears on city records: 12 Months Ending October 31, 1976 12 Months Ending October 31, 1977 Market Value $980,000.00 $1,100,000.00 Taxes Paid 52,927.98 44,446.32 Council Letter No. 376 -4- December 12, 1977 Recommendation It is recommended that the application for renewal of the on -sale and Sunday liquor licenses by the Left Guard, Inc. be both granted and issued subject to the following provisions: 1. That the applicant designate a Richfield resident as a manager in _conformance with city ordinance requirements 2. That the applicant complete compliance with the provisions of the amended off- street parking contract. Respectfully submitted, 60 �3. <6 Wayne S. Burggraaff City Manager WSB /eja cc: Public Safety Director Public Works Director Environmental Health Director Deputy City Clerk MEMORANDUM Date: December 6, 1977 To: Wayne S. Burggraaff City Manager From: Thomas A. Morgan, Jr. Director of Public Safety Subject: LIQUOR LICENSE RENEWAL - THE LEFT GUARD CORPORATION As a part of the liquor license renewal process, the Public Safety Depart- ment has conducted the required criminal investigation into the operations of Maximillian's of Mexico and Chi -Chi's Restaurant located at 7717 Nicollet Avenue South. Both operations are owned and managed by Left Guard, Inc. I am attaching a copy of Police Agent Hollick's report of this background investigation for your information. By way of summary, I might just mention that we have found no problems in our investigation of the principals in- volved in this license renewal application, Mr. Marno McDermott and Mr. William McGee. The only problem that seems to be currently unresolved relates to the person named as the manager of this business. Richfield City Ordinance Code 11.06, subdivision 10 (10) requires that the manager be a resident of the City of Richfield. For sometime Mrs. Marilyn Glynn who resides at 7313 Third Avenue South has been the manager of the establishment. Mrs. Glynn has reapplied as the manager for 1978. However, on the basis of our investigation, it appears that Mrs.. Glynn's actual duties have been changed and she is currently working in the Left Guard corporate offices in Bloomington. The person who appears to be performing the manager's duties at the establishment in Richfield is a Mary Ann Bardot. Ms. Bardot is a Bloomington resident and therefore would not qualify for approval as manager under the terms of our city ordinance. We have brought this matter to the attention of Mr. McDermott and as of yet have not received a response. In addition to our investigation of the liquor license applicants, we have also reviewed the police division incident reports involving Maximillian's and Chi - Chi's. To date during the current year, we have responded to twenty - seven various calls at that establishment broken down into the following categories: Thefts (occurring within building) 6 Thefts from Automobiles (occurring in parking lot) 10 Assaults 6 Customer Disputes 2 Disorderly Conduct 2 Miscellaneous Sexual Conduct 1 Total Incidents to Date 27 Wayne S. Burggraaff Page Two December 6, 1977, During 1976 we experienced twenty incidents requiring police service. We are concerned about the increase in incidents occurring in 1977, but several of these occurred during the transition period from the old Left Guard Restaurant to the new organizational arrangement involving Chi -Chi's and Maximillian's. A number of the problems we are experiencing are occurring in the parking lot, and we have discussed these matters with the management.' They have informed us they will attempt to reduce these problems by provid- ing attendants in the parking lot areas. All of the incidents involved customers, and we have received no substantial complaints against the business itself. For your review prior to the council consideration of this matter, I am in- cluding copies of the twenty -seven incident reports generated as a result of Public Safety Department activity at Maximillian's and Chi -Chi's during this past year to date. From a public safety prospective, assuming the issue relating to the manager can be resolved, there does not appear to be a basis to recommend the denial of the liquor license for the Left Guard Corporation. TAM /go Attachments inter- Office Memorandum DATE November 30t 1977 To . Sergeant 'J. Wright FROM Agdnt W. Hollick sue,�ct Liquor License Investigation of Left Guard Inc. On. . �`�'9/?7 the investigation regarding the Left Guard Inc. and their applicatio n for the renewal of their liquor license for the year .of ,.W[8 was concluded. We have determined that William McGee :., and `1Rarnc MCD6Mott are still co- owners of the Left Guard Ina. A check with Francis Riley, who works for the State of Minnesota Department'of Revenue, indicated that the Left Guard Inc. is current on all their sales and witholding tax for this year and that the, state hat had no problems in that particular area. All insurance for :.the past year appears to be up to date. We had received information that a company that goes by' the name of John- Stephans Holding Company, with an office located in the IDS Tower in Minneapolis, had actual controlling interest in the Left Guard Inc. However, after reviewing that prospectus, we know that John Stephans had only received the right to franchise the name of ChiChi s, and had no stock whatsoever in the corporation. Therefore, we can conclude that based upon that information that McGee and McDermott are still co- owners. The only other slight problem that we encountered was the fact that the person listed as the operations manager for ChiChits, Marilyn R. Glynn, who is a Richfield resident, no longer appears to have responsibility for the area of the operations at ChiChi's. She `nor works out of the Left Guard Inc. office located in the Summitt Bank Building in Bloomington. Our information is that the new operatic:- manager is Mary Ann Bardot, and that Mary Ann lives in Bloomington. Mr. McGee has been made aware of this noted discrepancy and as of this date has taken no action to resolve the situation. Also attached you will find the incidents regarding the ChiChi's and Maximillian's for the past year. While the number of incidences at the two restaurants has increased, this can be explained that we feel the management is reporting more of these to the Police than was the case when the establishment was known as the Left Guard and that as the Left Guard deteriorated, business dropped off, and consequently fewer people were going to the night club and fewer incidences were actually happening. I don't feel that the management is. responsible for these incidences and that they're taking all steps reasonably possible to prevent any reoccurrences. 3 CITY OF RICHFIELD, MINNESOTA Office of City Manager Council Letter No. 375 Agenda December 12, 1977 The Honorable Mayor and Members of the City Council City of Richfield Gentlemen: Subject: Renewal of On -Sale & Sunday Liquor License, The Godfather, Inc. At the November 28, 1977 city council meeting, the city council set December 12, 1977 as the date for a public hearing on the request for renewal of the on -sale and Sunday liquor licenses issued to The Godfather, Inc. , 700 West 66th Street. The application for this license was submitted by Mr. John Anzevino, President -and Mr. Gerald Burnett, Vice - President. However, the applicants failed to submit all of the items required by the application for the license re- newals, including a financial statement prepared by a certified public account- ant. It is recommended that the city council continue the hearing on renewal of the'on -sale and Sunday liquor licenses for the Godfather, Inc. to December 27, 1977. WSB /eja cc: Public Safety Director Deputy City Clerk Respectfully submitted, Wayne S. Burggraaff City Manager /d CITY OF RICHFIELD, MINNESOTA Office of City Manager Council Letter No. 374 Agenda December 12, 1977 The Honorable Mayor ano Members of the City Council City of Richfield Gentlemen: Subject: Proposed Changes in Park and Recreation and Youth • Advisory Commissions In the 1960's, the Richfield City Council established a Youth Advisory Commission for the purpose of advising the city council concerning youth activities and facilities available in the City of Richfield. Since its forma- tion, this commission has been functioning with general guidance and support from the park and recreation department staff, although the commission has frequently had problems maintaining membership and a sense of direction. There are currently eleven vacancies on the Youth Advisory Commission, out . of twelve positions. All of these vacancies have occurred either through resig- nation of members midway through an appointed term, or expiration of terms where the commission member indicated no interest in being reappointed. The Park and Recreation Advisory Commission, when it was established, included an ex- officio, non - voting representative from the Youth Advisory Commission. Over the years, the Park and Recreation Commission has be- come concerned with the failure of the Youth Commission to provide this representation to the Park and Recreation Commission. At the November, 1977 meeting of the Park and Recreation Commission, that commission voted to recommend to the city council that the Youth Advisory Commission be dis- continued, and that the Park and Recreation Commission be expanded to in- clude two additional voting members, with these positions to be designated for youth representation, and to be filled by young people. It is the position of the Acting Parks and Recreation Director, in which I concur, that the proposal of the Park and Recreation Commission would effectively provide for continued representation of the concerns and interests of the community's young people, while resolving the continuing frustrations that the Youth Commission has experienced. f Council Letter No. 374 -2- December 12, 1977 Two resolutions are attached to this letter for city council consideration. One resolution eepeals the establishment of the Youth Advisory Commission, while the second resolution provides for expansion of the Park and Recreation Commission, and designation of the two added positions as youth positions. Since new terms for the Park and Recreation Commission begin in February, it is recommended that the city council adopt the attached resolutions at this time in order to provide adaquate time for recruitment and selection of youth representatives to be appointed to the Park and Recreation Commission in February, when the new terms begin. Respectfully submitted, 0*w- z . 8 Wayne S. Burggraaff 14 City Manager WSB /eja cc: Acting Park and Recreation Director RESOLUTION NO. RESOLUTION'REPEALING RESOLUTION NUMBER 4116 OF THE CITY COUNCIL ADOPTED FEBRUARY 10, 1969, WHICH RESOLUTION WAS ENTITLED "RESOLUTION ESTABLISHING ADVISORY YOUTH COMMISSION." WHEREAS, by Resolution Number 4116 of the City Council of the City of Richfield, the Richfield Youth Commission was established and directed as to membership and purpose, and WHEREAS, Resolution Number 4326 of the City Council of the City of Richfield amended the policy or direction of the Richfield Advisory Youth Commission, and WHEREAS, Resolution Number 4502 of the City Council of the City of Richfield amended the membership terms of the Richfield Youth Advisory Commission, and WHEREAS, Resolution Number 5383 of the City Council of the City of Richfield amended the previous resolutions as to membership and purpose of the Richfield Advisory Youth Commission, and WHEREAS since its inception, the Richfield Youth Advisory Commission has found it difficult to maintain membership and purpose, and WHEREAS, discussion has been held with the most recent membership of the Richfield Advisory Youth Commission, the staff of the park and recreation department, the membership of the Richfield Park and Recreation Advisory Commission and the City Council of the City of Richfield, and WHEREAS, such discussion has concluded the youth of Richfield may better be served through alternate channels, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota, that Resolution Number 4116, establishing the Advisory Youth Commission, and all subsequent amendments to said Resolution, are hereby repealed. Passed by the City Council of the City of Richfield this 12th day of December, 1977. Loren L. Law Mayor ATTEST: Thomas J. Moran City Clerk RESOLUTION NO. RESOLUTION AMENDING RESOLUTIONS NUMBERS 4960, 5100, and 5231 ESTABLISHING A PARK AND RECREATION ADVISORY COMMISSION WHEREAS, by Resolution Number 4960 passed by the City Council of the City of Richfield, April 9, 1973, the Richfield Park and Recreation Advisory Commission was established and.directed as to membership and purpose, and WHEREAS, by Resolution Number 5100 of the City Council of the City of Richfield, the membership of the Richfield Park and Recreation Advisory Commission was amended from seven regular members and four ex- officio members to nine regular members and four ex- officio members, and WHEREAS, by Resolution Number 5231 of the City Council of the City of Richfield, the membership of the Richfield Park and Recreation Advisory Commission was amended from nine voting regular members and four voting ex- officio members to nine voting regular members and four non - voting ex- officio members, and WHEREAS, the City of Richfield has, from time to time, found it to be in the best interest of the community to establish additional advisory commissions including, but not limited to, a Richfield Advisory Youth Commission, and WHEREAS, said Richfield Advisory Youth Commission has had difficulty over the years in maintaining membership and purpose, and WHEREAS, it has been determined that youth representation in an advisory capacity continues to be in the best interest of the community, and WHEREAS,. discussions with former members of the Richfield Youth Advisory Commission, members of the Richfield Park and Recreation Advisory Commission, the staff of the park and recreation department, the City Council of the City of Richfield have determined a change in policy regarding such youth representation can best be served by amending the membership of the Richfield Park and Recreation Advisory Commission, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota, that amendments to the establishment of the Richfield Park and Recreation Advisory Commission be made as follows: 1. There is hereby created a Park and Recreation Advisory Commission. 2. The Commission shall serve in a direct advisory capacity to the city council. Staff services for the Commission shall be furnished by the park and recreation department of the city. 3. The Commission shall consist of eleven (11) regular members, all of whom shall be residents of the City of Richfield. They shall be appointed by the city council and shall be subject to removal, with or without cause, by the city council. In making appointments to the Commission, the city council shall undertake to secure a representative balance among various groups and interests within the community. Two (2) of the eleven (11) fl RESOLUTION NO. -3- 0 d) Resignation in writing. e) Removal by the city council. f) Election or appointment to a public office. Passed by the city council of the City of Richfield this 12th day of December, . 1977. ATTEST: Thomas J. Moran City Clerk Loren L. Law Mayor CITY OF RICHFIELD, MINNESOTA Office of City Manager Council Letter No. 373 Agenda December 12, 1977 The Honorable Mayor and Members of the City Council City of Richfield Gentlemen: Subject Minutes and Tabulation of Bids, Chemicals for Water Treatment Plant On December 7, 1977, in accordance with previous city council author- ization, the Acting City Manager opened bids for chemicals used at the water treatment plant. The public works director, finance director, and acting park and recreation director were also present. A copy of the bid tabulation and minutes of the bid opening are attached to this letter for council review. Bids were received for the following four chemicals: Quick Lime Only one bid was received for quicklime, submitted by Cutler - Magner Company, in the amount of $49.80 per ton. (1977 price= $43. 55) Liquid Aluminum Sulfate Two bids were received for liquid aluminum sulfate, submitted by American Cyanamid and Hawkins Chemicals, Inc. The low bid, submitted by American Cyanamid, specified that the bid prices were subject to change on a quarterly basis. This bid, in the amount of $85.37 per ton, is $1.23 per ton lower than the firm bid of $86.60 per ton presented by Hawkins Chemicals, Inc. (1977 price X81.00) Liquid Anhydrous Ammonia Three bids were received for liquid anhydrous ammonia, from Jones Chemicals, Hawkins Chemicals, Inc., and Van Waters & Rogers. The bids ranged from 23'r to 25� per pound for this material, with the low bid of 23� per pound submitted by Jones Chemicals, Inc. (1977 price =$ .25) Sodium Silico Fluoride Three bids ware also received for this item. The bid submitted by Van Council Letter No. 373 -2= December 12, 1977 Waters & Rogers, in the amount of $16.75 per hundred weight for 12,tons of sodium silico fluoride, was lower than the bids received from Jones Chemical, Inc., and Hawkins Chemicals, Inc. (1977 price - $16.75). Recommendations: It is the recommendation of the public works director, in which I concur, that the city council make tYe following bid awards: 1. Accept the bid of Cutler- Magner Company for quick lime, at the unit price of $49.80 per ton. Estimated total cost for the anticipated usage requirement of 1300 tons is $67, 740. 2. Accept the bid submitted by Hawkins Chemicals, Inc. for liquid aluminum sulfate, at a firm price of $86.60 per ton. For the anticipated usage of 125 tons, the estimated total cost will be $10,825. 3. Approve the low bid from Jones Chemicals, Inc. for anhydrous ammonia, at the price of 23� per pound. Estimated total cost for the anticipated usage requirement of 2 tons will be $920. 4. Approve the bid offered by Van Waters and Rogers for sodium silico, at a unit cost of $16.75 /cwt. For the estimated usage requirement of 12 tons, the total cost will be $4, 020. Respectfully submitted, Wayne S. Burggraaff City Manager cc: Public Works Director Finance Director Administrative Assistant rc. CITY OF RICHFIELD Bid Opening December 7, 1977 Chemicals - Water Treatment Plant Pursuant to requirements of Resolution No. 1015, a meeting of the Administrative staff was called by Joyce Wilde, Acting City Manager, who announced that the purpose of the meeting was to receive, open and read aloud, sealed bids on Chemicals for the Water Treatment Plant as advertised in the official newspaper on November 23, 1977. Present: Joyce Wilde, Acting City Manager Carl Marinics, Public Works Director Ken Conway, Water Plant Director Kathy Wilson, Acting Park & Recreation Director Thomas J. Moran, City Clerk The following bids were submitted and read aloud: 250,000 2 Ton Liq. 24,000 Lbs. Bidder 1,300 Ton Liquid-Aluminum Anhydrous Sodium Silico Bid Security Quick Lime Sulfate Ammonia Flouride Jones Chemical, Inc.' 5% Bid Bond No Bid No Bid $.23/lb. $.17 /lb. Chemtech Industries. Inc. No Bid No Bid No Bid No Bid Allied Chemical No Bid No Bid No Bid No Bid Cutler- Magner Co. Cert. Check $3,300 $49 80 /ton No Bid No Bid No Bid Hawkins Chemical $.0433/1b. $.25/lb 5% Bid Bond No Bid $86 60 /ton $37.50 /cylinder $19.00 /cwt. American Cyanimid Co. $1,000 Bid Bond No Bid $85.37/ton No Bid No Bid Van Waters & Rogers 5% Bid Bond No Bid No Bid $24.50 /cwt $16.75 /cwt The Acting City Manager announced that the bids would be tabulated and considered at the council meeting of December 12, 1977. Thomas J. Moran City Clerk A- 1 I i I --4 tVW co %In LAO LA) O C]rrH y - 0 �je O bd pC (D W C7 c+ N (D 0 H. 0A F-' �-i o `P (D H N• E3 L (D P, :4 N• P. Fi (D (D ct cn P. td fv aa 0 ct y r (D .�'(D P. o as PP,� o Fi'0• d P, P, O 1 1 6 Fd hd H N. N. 0 bd En O td N• bd of O ((DgD .• (D � ~' Ft O F'• (D �, P, N P n E+• (D bd W fA P, 1 — — (D (D ~ K v c-F c0+ 1 1 I 1 ° N C�1xCZ O O (D x W H CA GQ (D o' :i� P (D PI 0O ry m c0+ (D F'• (D 0 r� p O 0 ~ En (moo 0 ¢0 (�A Fi H 0 cal' n cF P Fi Fi n . C G7 (D 1 I i I --4 tVW co %In LAO LA) O C]rrH y - 0 0 1-4 1-3 Cy � R bbr�dd LH� F°d y 0 � � O i hd td tGOwo 0 M C") N n F'd N 1,0 N 1-3 N O bd pC (D W C7 c+ N (D 0 H. 0A F-' �-i o `P (D H N• E3 L (D P, :4 N• P. Fi (D (D ct cn P. td fv bd rs ct y P, (D bd (D .00 PP,� a°PN m o j O4 H bd �4 bd En O td N• bd of O ((DgD C3' (D 0 (D � 0 O F'• P, �, P, P, w K n p bd P, 1 ~ K v P, 004 ° N w O (D P, P, W H CA m 0 to r� O 0 tz cF n O O O O O r:- O~ ta \O btd• � bd W 0 bd td O° P, P, 1z 0 P, P, P, r y O r O t4 co O OD C)o O O O P, \-n VI O\ O � P. P. � O W 0'\ LA.) P, O P O\ P P P P \ (D O cF c+ 'P Nc N Q O O O f N N H bNd • P. � LO 0 ` P. N p N. Fi 0 o P, o P P, P w O r (D 'k O 'O N bd bd bd bd � 0 °O Vi P, (D P, P, P, N. N o \ \ • (D P 0 U n En O• 0 1-4 1-3 Cy � R bbr�dd LH� F°d y 0 � � O i hd td tGOwo 0 M C") N n F'd N 1,0 N 1-3 N CITY OF RICHFIELD, MINNESOTA Office of City Manager Council Letter No. 372 Agenda December 12, 1977 The Honorable Mayor and Members of the City Council City of Richfield Gentlemen: Subject: Environmental Assessment Worksheet for Wood Lake School Site Development Project The city council considered a request for rezoning of the Wood Lake School site from residential to planned multiple family residential at their September 26, 1977 meeting. A second reading on the requested rezoning was held October 24, 1977, at which time the council approved the planned unit development, subject to approval of a special use permit. The planning commission and the staff had concurred in recommending council approval of the requested rezoning. Plans for the condominium development proposed for this site involve con- struction of 129 condominium townhouse units on 6.003 acres of land. The project is to begin construction in April, 1978, with project completion and full residency expected by July, 1980. The development will house an estimated 208 people and have 233 parking spaces, of which 160 will be below ground. Rules of the Minnesota Environmental Quality Council require that an Environmental Assessment Worksheet be prepared, and submitted to the EQC, for all developments adjacent to public bodies of water. A mid - November ruling by the Minnesota Department of Natural Resources classified Richfield Lake as a public body of water. Therefore, the Woodlake Village Condominium PUD project is required to prepare and submit an Environmental Assessment Worksheet in order to comply with the rules of the Environmental Quality Council. The principal function of the Environmental Assessment Worksheet is to assess whether or not a project warrants preparation of an Environmental Impact Statement. A copy of the Environmental Assessment Worksheet prepared for this project is attached for council review. This assessment lists both positive and adverse impacts of the project on the environment. Any mitigating measures that will be used to reduce negative impact are also cited. This statement has been prepared and reviewed by the developers, the staff, and the city attorney's office. It is the conclusion of that review that the Wood � V . Council Letter No. 372 -2- December 12, 1977 Lake Village Condominium project does _not warrant preparation of a complete Environmental Impact Statement. Therefore, it is requested that the city council approve the attached Environmental Assessment Worksheet, and request the staff to submit the worksheet to the Minnesota Environmental Quality Council with a negative declaration, which stipulates that no Environmental Impact Statement is needed. A resolution providing for council approval of the Environ- mental Assessment Worksheet and authorization of a negative declaration is attached. Respectfully submitted, 7 Wayne S. Burggraaff City Manager WSB /eja cc: Planning and Redevelopment Director City Attorney OF - RESOLUTION NO. RESOLUTION RELATING TO THE APPROVAL AND AUTHORIZATION OF THE WOOD. LAKE VILLAGE CONDOMINIUM ENVIRONMENTAL ASSESSMENT WORKSHEET WITH A NEGATIVE DECLARATION WHEREAS, the Richfield Development Corporation, 5000 Normandale Road, Minneapolis, Minnesota, intends to develop 1100 West 66th Street, Richfield, Minnesota, with a 129 unit townhouse condominium project, and WHEREAS, a rezoning request for a change from residential to planned multiple family was approved by the City Council on October 24, 1977, and WHEREAS, the Minnesota Environmental Quality Board requires the submission of an Environmental Assessment Worksheet under MEQC Rule 6 MCAR 3.024 B.1. U. before development can proceed, and WHEREAS, the Environmental Assessment Worksheet has been completed and the project found not to be a major action or of significant environmental impact, and . WHEREAS, a Negative Declaration is declared. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfbld, Minnesota, as follows: That the City Council approve and authorize submission of the Wood Lake Village Condominium Environmental Assessment Worksheet with a Negative Declaration. Passed by the City Council of the City of Richfield this 12th day of December, 1977. ATTEST: Thomas J. Moran City Clerk Loren L. Law Mayor I. MINNESOTA ENVIRONMENTAL QUALITY COUNCIL ENVIRONMENTAL ASSESSMENT WORKSHEET (EAW) AND NOTICE OF FINDINGS DO NOT WRITE IN THIS SPACE E. R. # NOTE: The purpose of the Environmental Assessment Worksheet (EAW) is to provide information on a project so that one can assess rapidly whether or not the project requires an Environmental Impact Statement. Attach additional pages, charts, maps, etc., as needed to answer these questions. Your answers should be as specific as possible. Indicate which answers are estimated. SUMMARY A. ACTIVITY FINDING BY RESPONSIBLE AGENCY (PERSON) X Negative Declaration (No EIS) EIS Preparation Notice (EIS Required) B. ACTIVITY IDENTIFICATION 1. Project Name or title Wood Lake Village Condominiums - 2. Project proposer Richfield Development Corporation Address 5000 Normandale Road, Minneapolis, MN 55436 Telephone Number and Area Code (612) 929 -6776 3. Responsible Agency or Person City of Richfield Address 6700 Portland Avenue So,'-Richfield, MN 55423 Person in Responsible Agency (Person) to contact for further information on this EAW: Richard C. Krier Telephone 869 -7521 4. This EAW and other supporting documentation are available for public inspection and /or copying at: Location City of Richfield, Planning Department Telephone 869 -7521 —Hours–Monday-Friday 8:00 AM - 4:30 PM 5. Reason for EAW Preparation X Mandatory Category -cite Petition Other MEQC Rule number(s) 6MCAR 3.024 B.l.U. -1- C. ACTIVITY DESCRIPTION SUMMARY 1. Project Location County Hennepin City /Township name Richfield Township number 28 (North), Range number 24 (West) Section number 28 Street address (if in city) or legal description: 1100 West 66th Street 2. Type and scope of proposed project: The proposed project involves the construction of a multiple family 129 -unit condominium. Four buildings will be built on 6.003 acres and will be completed in July, 1980. 3. Estimated starting date April, 1978 4. Estimated completion date July, 1980 5. Estimated construction cost $4,550,000 6. List any federal funding involved and known permits or approvals needed from each unit of government and status of each: Unit of Government Name or Type of Permit/ Status (federal, state, Approval or Federal regional, local) Funding zoning change - residential Local to planned multiple Granted family unit Local building permit Not Submitted Regional Minnehaha Watershed) fill permit Submitted Pending with Local special use permit City Council public water State (DNR) alteration Not Submitted 7. If federal permits, funding or approvals are involved, will a federal EIS be prepared under the National Environmental Policy Act? X NO YES UNKNOWN II. ACTIVITY DESCRIPTION A. Include the following maps or drawings: 1. A map showing the regional location of the project. 2. An original 8 -1/2 X 11 section of a U.S.G.S 7 -1/2 minute, 1:24,000 scale map with the activity or project area boundar- ies and site layout delineated. 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S - - -L_ 2TH I _-AV, AVE S Jl -rrac— Jj1,I! ■�s 650 y��/ JI - �� 4- e oourNO ro h AVl !� �J v. —lr �— —_ _ r �. —`Ir` I ___ ro . _ —T• I — JI —�! — =i �Q I fi=— 1 <_. =f, 1111 b E� _ .t, r i E� A _� i Jr j .. AVEL� 1 _l.\� €,�I jIa I'i - -JIB,_ J rl I �� c�?= sir ,'lI A - r.� �ti Park`s ( pr Ih i Jf II ar}� -c- Fl v \ l+ AV.- ,I / !_ �i •IL n la II ' d'° III 11 \ m _ L - I .�1� I c `' 1 \ I. 1 ml—J o Wj n3 1'� JI• 9` . II. 5r� m II� ._- O ° N.. i11(' , \\ ........ -r ... i s. .. .. .. ... vs ,I r `1 r..4 ~ \\ �• II �_ 'I; 3a Tw aVE__. S. - �h1� J -K , re ` � ums: -43•.1 3. ¢. tIHITS � 4ico 5.F �t 2 b. #C. UN IT6 I Ix 6..F• EA4f4 72+ f �J t4.3 b. 9 UNM619 Igo 5a6lF eA4H �'\ Ricxt name. (Original U.S.G.S. sheet must be maintained by Responsible Agency; legible copies may be supplied to other EAW distribution points.) 3. A sketch map of the site showing location of structures and including significant natural features (water bodies, roads, etc.). 4. Current photos of the site must be maintained by the Responsible Agency. Photos need not be sent to other distribution points. B. Present land use. 1. Briefly describe the present use of the site and lands adjacent to the site and lands adjacent to the site. The site proposed for the condominium development is a vacated elementary school and its related grounds. Wood.Lake Elemen- tary School was closed in June, 1976, in response to decreas- ing student enrollments. Since June, 1976, the school has remained closed without being utilized by some other agency. The land uses to the east and west of the project site are primarily single- family residential. North of the location is Richfield Lake, presently covered by reeds and holding minimal water. West 66th Street is situated south of the site with single family homes on the south side of the street. SEE APPENDIX 1. 2. Indicate the approximate acreages of the site that are: a. Urban developed - 3.0 acres b. Urban vacant - 2.213 acres C. Rural developed - 0 acres d. Rural vacant - 0 acres e. Designated Recreation /Open Space - 0 acres f. Wetlands (Type III) - .19 acres g. Shoreland - 6.003 acres within 1000 feet of Richfield Lake h. Floodplain - .19 acres i. Cropland /Pasture land - 0 acres j. Forested - .60 acres SEE APPENDIX 2 FOR CALCULATIONS. -3- 3. List names and sizes of lakes, rivers and streams on or near .the site, particularly lakes within 1,000 feet and rivers and streams within 300 feet. Richfield Lake is adjacent on the north of the project site. It covers approximately 30 acres of surface area. However, of this acreage, there is no open water. Today, Richfield Lake is almost entirely covered by aquatic vegetation. Wood Lake is located 1,200 feet south of the proposed project site. It covers an area of about 80 acres and comprises part of Wood Lake Nature Center. C. Activity Description 1. Describe the proposed activity, including staging of develop - ment (if any), operational characteristics, and major types of equipment and /or processes to be used. Include data that would indicate the magnitude of the proposed activity (e.g. rate of production, number of customers, tong of raw materials, etc.). The proposed project will result in a 129 -unit condominium development. There are three principal stages to the project. The first is initiated on April 1978 and consists of the con- struction of 48 -50 units. The second phase begins November, 1978 and involves construction of an added 27 units. The final, and third, phase begins June, 1979 and results in the final 48 -54 units. The entire project is projected at being completed by July 1980 (SEE APPENDIX 3). At full resi- dency, approximately 208 people are expected to live in the development. Maintenance of the condominium will involve a number of seasonal activities. These will include snow removal, leaf raking, lawn mowing and lawn watering. Other operational characteristics include trash removal, exterior painting and parking lot maintenance. 2. Fill in the following where applicable: a. Total project area - 6.003 acres or length N/A miles b. Number of housing or recreational units - 129 C. Height of structures - 34 feet (three stories) d. Number of parking spaces - 233 e. Amount of dredging - 0 cubic yards. f. Liquid wastes requiring treatment - 15,600 gal /da g. Size of marina and access channel (water area) - NIA sq. ft. h. Vehicular traffic trips generated per day - 725 ADT -4- i. Number of employees -.4 (i.e. manager, maintenance) j. Water supply needed - 19,552 gal /da Source: City of Richfield municipal well Aquifers: Jordan, Shakopee, Hinkley k. Solid waste requiring disposal - 132.86 tons /yr 1. Commercial, retail or industrial floor space - 600 sq.•ft. (temporary sales office) SEE APPENDIX 4 FOR CALCULATIONS. a III. ASSESSMENT OF POTENTIAL ENVIRONMENTAL IMPACT A. SOILS AND TOPOGRAPHY 1. Will the project be built in an area with slopes currently exceeding 12 per cent? NO X YES 2. Are there other geologically unstable areas involved in the project, such as fault zones, shrink -swell soils, peatlands, or sinkholes? X NO YES SEE APPENDIX 5 - SOILS SURVEY 3.' If yes on 1 or 2, describe slope conditions or unstable area and any measures to be used to reduce potential adverse impacts. Over the past 50 years, embankment along Richfield Lake has been filled with unstable materials. Presently, the slope of the bank varies from 63 per cent (19 foot drop in a 30 foot run) to 25 per cent (19 foot drop in a 75 foot run). The present plans involve placing two buildings on the embankment ar -:a. It wiil, therefore, be necessary to regrade the bank to a 30 per cent maximum. Unstable fill material will be removed and replaced with more stable materials during the regrading process. Terracing and hardy ground covers, such as crown vetch and virginia creekper will be used to further stabilize the slope and stop erosion. 4. Indicate suitability of site soils for foundations, individual septic systems, and ditching, if these are included in the project. Soil borings performed on the project site indicate that soils are suitable for foundation bearing below the fill areas. Pre- sent fill areas unsuitable for construction are scheduled to be removed and replaced with materials of appropriate bearing capacity. (SEE APPENDIX 5 FOR SOILS TESTS). -5- 5. Estimate the total amount of grading and filling which will be done) 9,932 cu. yd. grading 8,060 cu. yd. filling (SEE APPENDIX 6) What per cent of the site will be so alterted? 700 6. What will be the maximum finished slopes? 300 7. What steps will be taken to minimize soil erosion during and after construction? SEE APPENDIX 7. B. VEGETATION 1. Approximately what per cent of the site is in each of the following vegetative types: Woodland 6 % Cropland /Pasture N/A % Brush or shrubs 4 % Marsh o Grass or herbaceous 36 % Other (specify) % SEE APPENDIX 8 FOR CALCULATIONS. 2. How many acres of forest or woodland will be cleared, if any? .357 acres - SEE APPENDIX 8A. 3. Are there any rare or endangered plant species or areas of unique botanical or biological significance on the site? (See DNR publication The Uncommon Ones.) X NO YES SEE APPENDIX 9. C. FISH AND WILDLIFE 1. Are there any designated federal, state or local wildlife or fish management areas or sanctuaries near or adjacent to the site? NO X YES Wood Lake Nature Center. -6- 2. Are there any known rare or endangered species of fish and wildlife on or near the site? (See DNR publication The Uncommon Ones.) X NO YES 3. Will the project alter or eliminate wildlife or fish habitat? NO X YES SEE APPENDIX 10. 4. If yes on any of questions 1 -3, list the area, species or habitat, and indicate any measures to be used to reduce potential adverse impact on them. Wood Lake Nature Center is located 1000 feet south of the project site. It is under the jurisdiction of the City of Richfield and covers an area of 150 square miles. However, the proposed project should not adversely affect the Nature Center. Between the site and Center are substantial urban barriers. Directly south of the site is a major artery, West 66th Street with several blocks of single family homes before the Nature Center. Storm water will not drain into Wood Lake. Drainage patterns have the flowage directed towards Richfield Lake. The project will temporarily affect habitats on Richfield Lake adjacent to the site. The current plans involve removal of .357 acres or 15,550 square feet of woodland. However, the entire area will be replanted in native transitional vegetation that will be chosen to provide both cover and food resources for wildlife. Through property plant selection, the plant stock can be improved over the existing vegetation which principally supplies only cover. D. HYDROLOGY 1. Will the project include any of the following: If yes, describe type of work and mitigative measures to reduce adverse impacts. NO YES a. Drainage or alteration of any lake, pond, marsh, lowland or groundwater supply X b. Shore protection works, dams, or dikes X C. Dredging or filling operations d. Channel modifications or diversions X e. Appropriation of ground and /or surface water X f. Other changes in the course, current or cross - section of water bodies on or near the site X -7- X 2. What per cent of the area will be converted to new impervious surface;' 1.1% SEE APPENDIX 11 3. What measures will be taken to reduce the volume of surface water runoff and /or treat it to reduce pollutants (sediment., oil, gas, etc.)? By reducing the concentration of impervious surfaces and prov- iding green space between hard surfaces, water runoff will have a greater chance to be absorbed rather than runoff. Two traps will be placed in the storm sewer system to remove large particles from the flowage. Catch basins are to be included to reduce possible sheeting across walkways and parking areas. SEE APPENDIX 12 FOR LOCATIONS. 4. Will therebe encroachment into the regional (100 year) flood - plain by new fill or structures? NO X YES SEE APPENDIX 11A. If yes, does it conform to the local floodplain ordinance? *Richfield does not currently have a flood plain ordinance. 5. What is the approximate minimum depth to groundwater on the site? 33 feet. E. WATER QUALITY 1. Will there be a discharge of process or cooling water, sanitary sewage or other waste waters to any water body of to ground- water? X NO YES If yes, specify the volume, the concentration of pollutants and the water body receiving theaffluent. 2. If discharge of waster water to the municipal treatment system is planned, identify any toxic, corrosive or unusual pollutants in the wastewater. N/A 3. Will any sludges be generated by the proposed project? X NO YES If yes, specify the expected volume, chemical composition and method of disposal. 4. What measures will be used to minimize the volumes or impacts identified in questions 1 -3? N/A 5. If the project is or includes a landfill, attach information on soil profile, depth to water table, and proposed depth of disposal. N/A WE F. AIR QUALITY AND NOISE 1. Will the activity cause the emission of any gases. and /or particulates into the atmosphere? NO X YES If yes, specify the type and origina of these emissions, indi- cate any emission control devices or measures to be used, and specify the approximate amounts for each emission (at the source) both with and without the emission control measures or devices. The project will generate 725 ADT's. Slightly less than half of the automobiles will enter or leave the development from Rae Drive. However, gas and oil ( #2 grade) will be utilized as heating sources. The projections on page 7 state that the development will use 9,248,438 cubic feet of natural gas per year. Estimated emissions resulting from gas consump- tion will be (pounds of pollutant per million cubic feet): particulates - 46 -138 lbs, S02 -5.52 lbs, CO -184 lbs, HC - 73.6 lbs, and NOX -736 lbs per year. Oil usage is expected to run 28,023 gallons per year of #2 grade oil. Estimated emissions (pounds of pollutant per thous-and gallons) result- ing from oil use are: particulates - 280 lbs, S02 -19.6 lbs, S03-.28 lbs, CO -140 lbs, HC -84 lbs, and NOX -336 lbs per year. 2. Will noise or vibration be generated by construction and /or operation of the project? NO X YES If yes,.describe the noise sources; specify decibel levels dB(A), and duration (hrs /da) for each and any mitigative measures to reduce the noise /vibration. Noise will be generated by the project construction. Decibel levels have been calculated based on Environmental Protection Action document NT10300.1 December 1971. Equipment and deci- bels are as follows: 8 hrs. front loader 72 -85 dB(A) 8 hrs. trucks 82 -95 dB(A) 8 hrs. scrapers, graders 80 -95 dB(A) 8 hrs. paver 86 -88 dB(A) 8 hrs. cranes (movable) 75 -86 dB(A) 8 hrs. compressor 74 -86 dB(A) Demolition equipment is expected to be used for a period 10 days. Construction, including compressor, will only be con- ducted Monday through Friday from 8 :00 AM to 5:00 PM. Due to this, the problem of noise created by construction is expected to be kept at business hours when it will be less of an inconvenience to surrounding residents. ERIE 3. If yes on 1 or 2, specify whether any areas sensitive to noise or reduge air - quality (hospitals, elderly housing, wilderness, wildlife areas, residential developments, etc.) are in the affected area and give distance from source. There are two principal areas that could be sensitive to noise or reduced air quality. These are Wood Lake Nature Interpret- ative Center, and the single family homes adjacent to the project site. The first of these, Wood Lake Nature Center is located 1800 feet south of the project boundary. However, the impact the development could have on the Center should be minimal. Located between the park and the project site are several substantial urban barriers. Immediately south of the site is West 66th Street, a four lane major artery with a traf- fic count of 23,000 vehicles. There are also a number of single family homes and another small residential street located between West 66th Street and the Nature Center. The single family homes are located closer to the project site. Their proximity ranges from 10 to 80 feet from the project property line. On the west side of the site the homes are placed 20 and 30 feet away from the property line. The nearest house is on the east side, 10 feet away. The other home to the west is 80 feet away. Richfield Lake is located immediately to the north of the site. It, however, is not an official wildlife area. Under PCA regulations, construction is given a permissible decibel rating of NAC 4. The normal activity of the project is residential. Therefore, Richfield Lake should not experience any adverse impacts resulting from the project. It is likely that, I -35W, located only 350 feet west ofthe site would have a greater impact on Richfield Lake and adjoining residences. G. LAND RESOURCE CONSERVATION,.ENERGY 1. Is any of the site suitable for agricultureal or forestry production or currently in such use? X NO YES If yes, specify the acreage involved, type and volume of marketable crop or wood prcduced and the quality of the land for such use. 2. Are there any known mineral or peat deposits on the site? X NO YES SEE SOILS ANALYS, APPENDIX 4. 3. Will the project result in an increased energy demand? NO X YES a. Energy requirements (oil, electricity, gas, coal, solar, etc.) -10- SEE APPENDIX 13 FOR CALCULATIONS b. Estimate the capacity of all property on -site fuel storage. N/A C. Estimate annual energy distribution for: N/A Space heating Lighting Air Conditioning Processing Ventilation d. Specify any major energy conservation systems and /or equip- ment incorporated into this project. All units will be insulated to exceed Minnesota Energy Conservation Code. The heat transmission or U factor will be less than .055 for the walls and less than .1 for the ceiling. All glass will be double paned to a thickness of one inch. Windows will also have a thermo break construc- tion. To further conserve energy all units will be metered individually and heating and cooling constrols separate. e. What secondary energy use effects may result from this project? (e.g. more or longer car trips, induced housing or businesses, etc) Secondary energy use will be minimized. The proposed pro- ject area is located close to employment, shopping, medical care, and public transportation. As a result, travel dis- tances will be reduced and secondary energy usage kept minimal. H. OPEN SPACE /RECREATION 1. Are there any designated federal, state, county or local recreation or open space areas near the site (including wild and scenic rivers, trails, lake accesses)? NO X YES If yes, list areas by name and explain how each may be affected by the project. Indicate any measures to be used to reduce adverse impacts. -11- Estimated Peak Demand Firm Contract or Annual .' (Hourly or Daily) Anticipated Interruptible Type Requirement Summer Winter Supplier Basis? Natural 9,248,438 71,996 Interruptible Gas cu ft /yr cu ft /day- Minnegasco Natural Gas 807,900 Northern Electricity KWH /yr 750 KW States Power Readily Available 28,023 642 Oil( #2) gal /vr gal /day Commercial Bid Basis SEE APPENDIX 13 FOR CALCULATIONS b. Estimate the capacity of all property on -site fuel storage. N/A C. Estimate annual energy distribution for: N/A Space heating Lighting Air Conditioning Processing Ventilation d. Specify any major energy conservation systems and /or equip- ment incorporated into this project. All units will be insulated to exceed Minnesota Energy Conservation Code. The heat transmission or U factor will be less than .055 for the walls and less than .1 for the ceiling. All glass will be double paned to a thickness of one inch. Windows will also have a thermo break construc- tion. To further conserve energy all units will be metered individually and heating and cooling constrols separate. e. What secondary energy use effects may result from this project? (e.g. more or longer car trips, induced housing or businesses, etc) Secondary energy use will be minimized. The proposed pro- ject area is located close to employment, shopping, medical care, and public transportation. As a result, travel dis- tances will be reduced and secondary energy usage kept minimal. H. OPEN SPACE /RECREATION 1. Are there any designated federal, state, county or local recreation or open space areas near the site (including wild and scenic rivers, trails, lake accesses)? NO X YES If yes, list areas by name and explain how each may be affected by the project. Indicate any measures to be used to reduce adverse impacts. -11- Wood Lake Nature Center is located 1000 feet south of the project .site. The entire park covers 150 acres. Wood Lake itself covers 80 acres. However, due to distances and existing urban barriers, there would be few, if any, adverse impacts. Located between the park and the project site are a number of single family homes.* There are also two streets, West 66th Street, and Lake Shore Drive. West 66th Street, in particular, provides a major barrier. It is a four lane major arterial with a traffic count of 23,000 ADT's per day. Nor will storm water drainage be a problem for the Nature Center. The flowage from the site is oriented towards Rich- field Lake. I. TRANSPORTATION 1. Will the project affect any existing or proposed transporta- tion systems (highway, railroad, water, airport, etc.)? NO X YES If yes, specify which part(s) of the system(s) will be affected. For these; specify existing use and capacities, average traf- fic speed and percentage of truck traffic (if highway); and indicate how they will be affected by the project (e.g. con- gestion, percentage of truck traffic, safety, increase traffic (ADT), access requirements). The proposed project will add 725 ADT's to a major Richfield artery, West 66th Street. Presently, the street is a four - lane, undivided thoroughfare with a design capacity of 18,000 to 20,000 ADT's. Its present traffic count reveals that West 66th Street is carrying 23,000 ADT's with a volume /capacity ratio of 1.27 to 1.15. Under current conditions, the added traffic would definitely create congestion problems. However, Richfield has already scheduled street improvements that will increase West 66th Street's bearing capacity to 28,000 ADT's. These improvements would more than adequately absorb the trips generated by the development. West 66th Street improvements are to be completed by the end of 1979, meeting the traffic needs of the condominium (SEE APPENDIX 14) 2. Is mass transit available to the site? NO X YES SEE APPENDIX 15. 3. What measures, including transit and paratransit services,. are planned to reduce adverse impacts? There are no new transit The present system which to be more than adequate bus cut will be created, and West 66th Street. T congestion caused by the or paratransit services planned. is quite extensive, is considered for the condominium project. A however, at the corner of Emerson his detail will relieve potential bus stopping at that point. J. PLANNING, LAND USE, COMMUNITY SERVICES -12- 1. Is the project consistent with local and /or regional com- prehensive plans? NO X YES Is not, explain: If a zoning change or special use permit is necessary, indi- cate existing zoning and change requested. A special use permit is required for the proposed development. The permit is needed to effectuate the zoning change of resi- dential (R) to planned multiple family (PMR). 2. Will the type or height of the project conflict with the character of the existing neighborhood? X NO YES If yes, explain and describe any meansures to be used to reduce conflicts. The proposed project should not conflict with the residential character of the surrounding neighborhood. Although the development is multiple family, it is a condominium concept in which the residents own their own units. The height of the buildings will be a maximum of three stories, similar to the existing school buildings. There will also be substantial plantings that will soften the development further and act as a buffer between the single family homes and the condominiums. The exterior of the buildings will be brick and wood in earth tones. This type of exterior will provide better blending and act as a compliment to the surrounding neighborhood. Therefore, the multiple family development should add to the area rather than detract from it. The present condition of the school buildings and related grounds definitely detract from the neighborhood, however. Wood Lake School has been closed since June, 1976, and has not been utilized in any other manner. May of the windows have been broken and boarded up. Continuing this condition could potentially create a blighting situation on the surrounding residents. 3. How many employees will move into the area to be near the project? N/A How much new housing will be needed? N/A 4. Will the project induce development nearby -- either support services or similar developments? N/A If yes, explain type of development and specify any other counties and municipalities affected. N/A 5. Is there sufficient capacity in the following public services to handle the project and any associated growth? -13- Amount Required Public Service for Project Sufficient Capacity? capacity: 14.4 million /gal/ Water 19,552 gal /da day - utilized average: 4.4 million /gal /day Metro Treatment Plant cap: Wastewater Treatment 15,600 gal /da 218 mil /gal /da; average: 187 million /gal /day Sewer Schools Solid Waste Disposal Streets Existing is adequate Yes 86 pupils 10.92 ton /mo No more needed _her (police, fire, etc.) No more needed FOR CALCULATIONS - SEE APPENDIX 19 Yes SEE APPENDIX 16 Yes Yes Yes SEE APPENDIX 17 8 18 If current major public facilities are not adequate, do existing local plans call for expansion or is expansion necessary strictly for this one project and its associated impacts? N/A 6. Is the project within a proposed or designated Critical Area or part of a Related Actions EIS or other environmentally sensitive plan or program reviewed by the EQC? X NO YES If yes, specify which area or plan. 7. Will the project involve the use, transportation, storage, release or disposal of potentially hazardous or toxic liquids, solids on gaseous substances such as pesticides, radioactive wastes, poisons, etc.? X NO YES If yes, please specify the substance and rate of usage and any measures to be taken to minimize adverse environmental impacts from accidents. 8. When the project has served its useful life, will retirment of the facility require special measures or plans? X NO If yes, specify: K. HISTORIC RESOURCES 1. Are there any structures on the site older than 50 years or on federal or state historical registers? NO X YES 2. Have any arrowheads, pottery or other evidence of prehistoric or early settlement bee found on the site? X NO YES -14.- YEI: Might any know archaeologic or paleontological sites be affected 0by the activity? X NO YES 3. List any site or structure identified in 1 and 2 and explain any impact on them. The original building of Wood Lake Elementary School was con- structed in 1919. In 1976, the entire facilities was closed due to insufficient enrollment. Since that time, the school building has been affected by vandalism resulting in broken and boarded windows. It would,in addition,appear that the structure .does not have historical or architectural significance. The school building will be most definitely affected by the proposed condominium project. It will be necessary to remove the Wood Lake School to construct the southeast building and related parking and lawn areas. L. OTHER ENVIRONMENTAL CONCERNS Describe any other major environmental effects which may not have been identified in the previous sections. All environmental concerns have been covered. III. OTHER MITIGATIVE MEASURES Briefly describe mitigative measures proposed to reduce or eliminate potential adverse impacts that have not been described before. All mitigative measures have been described. V. FINDINGS The project is a governmental action. The Responsible Agency (Person), after consideration of the information in this EAW, and the factors in Minnesota Reg. MEQC 25, makes the following findings. According to permits needed. 1. The project is not a major action. State reasons: The proposed condominium project is not considered a major action due to its minimal impacts and its local significance. It involves only 129 units and is situated on a site that already has all util- ities in place. Nor will the development incur any associated growth. Richfield is already heavily urbanized with minimal undeveloped land, -15- 2. EIS PREPARATION NOTICE An'EIS will be prepared on this project because the project is a major action and has the potential for significant environmental effects. For private actions, the project is also of more than local significance. IV. CONCLUSIONS AND CERTIFICATION NOTE: A Negative Declaration or EIS Preparation Notice is not officially filed until the date of publication of the notice in the EQC. Monitor section of the Minnesota State Register. Submittal of the EAW to the EQC constitutes a request for publication of notice in the EQC Monitor. ' A. I, the undersigned, am either the authorized representative of the Responsible Agency or the Responsible Person identified below. Based on the above findings the Responsible Agency (Person) makes the following conclusions. (Complete either l or 2). 1. X NEGATIVE DECLARATION NOTICE No EIS is needed on this project, because the project is not a major action and /or does not have the potential for significant environmental effects and /or, for private actions only, the project is not of more than local signficance. Signature Title Date -16- t`` P FF k �• T o - k 3Atl ll3OGIVl9 - 1 w 3AV.HLHOM.LN3M.,. I is ".• W= - IQQaQI -1, J00 W W u 2 N] (Z9 tl F i } " QQO LL ?�fnQQ� ■IIIIIIIC �S 3Atl SN3A318 N W — 0s. .. S a x tltltl • p Lu 2 LL f Ui Q I 4. i.. .^ _ 0 W J O 3 f d BAY 19C, W J J W z F 6 W n t`` P FF k �• T o - k 3Atl ll3OGIVl9 - 1 w 3AV.HLHOM.LN3M.,. I is ".• W= • - ;3Atl. AaflSSllld 2+O 3Atl 1NVSV31d 3 OVOaIIVa 'S 8 'NY, yAV 1NVSV3ld 3 - BAY 1NVSV3ld 'M ._.a.— = '3Atl 1NVSV3ld M ` a F gsr Y V L j_ N MV ONVa© 3Atl ONVtlD .} 07, -0 -0 '3AV 13188VH r. ¢ R. ¢ O LL _ t: 'BAY 0l31d8tlO CC 0 ¢ .'3Atl 31 tlONAI t k /' 4 "'- 'BAY HOIHcnv - - - w Eh S I 3Atl 1NVAa8 5¢ fit" d S 'BAY xVdloO - C. o " iz 0 is T k .04" aoo M "ni .� 'BAY 1NOdnG - - - - _ y - _ - - # -- - i 3Atl NOS83W3 A 4. - IQQaQI -1, J00 W W u 2 N] (Z9 tl F i } " QQO LL ?�fnQQ� ■IIIIIIIC �S N • - ;3Atl. AaflSSllld 2+O 3Atl 1NVSV31d 3 OVOaIIVa 'S 8 'NY, yAV 1NVSV3ld 3 - BAY 1NVSV3ld 'M ._.a.— = '3Atl 1NVSV3ld M ` a F gsr Y V L j_ N MV ONVa© 3Atl ONVtlD .} 07, -0 -0 '3AV 13188VH r. ¢ R. ¢ O LL _ t: 'BAY 0l31d8tlO CC 0 ¢ .'3Atl 31 tlONAI t k /' 4 "'- 'BAY HOIHcnv - - - w Eh S I 3Atl 1NVAa8 5¢ fit" d S 'BAY xVdloO - C. o " iz 0 is T k .04" aoo M "ni .� 'BAY 1NOdnG - - - - _ y - _ - - # -- - i 3Atl NOS83W3 A 4. - IQQaQI -1, J00 W W u 2 N] (Z9 tl F i } " QQO LL ?�fnQQ� �S N • - ;3Atl. AaflSSllld 2+O 3Atl 1NVSV31d 3 OVOaIIVa 'S 8 'NY, yAV 1NVSV3ld 3 - BAY 1NVSV3ld 'M ._.a.— = '3Atl 1NVSV3ld M ` a F gsr Y V L j_ N MV ONVa© 3Atl ONVtlD .} 07, -0 -0 '3AV 13188VH r. ¢ R. ¢ O LL _ t: 'BAY 0l31d8tlO CC 0 ¢ .'3Atl 31 tlONAI t k /' 4 "'- 'BAY HOIHcnv - - - w Eh S I 3Atl 1NVAa8 5¢ fit" d S 'BAY xVdloO - C. o " iz 0 is T k .04" aoo M "ni .� 'BAY 1NOdnG - - - - _ y - _ - - # -- - i 3Atl NOS83W3 A 4. N — 0s. .. S a x tltltl • p I • - ;3Atl. AaflSSllld 2+O 3Atl 1NVSV31d 3 OVOaIIVa 'S 8 'NY, yAV 1NVSV3ld 3 - BAY 1NVSV3ld 'M ._.a.— = '3Atl 1NVSV3ld M ` a F gsr Y V L j_ N MV ONVa© 3Atl ONVtlD .} 07, -0 -0 '3AV 13188VH r. ¢ R. ¢ O LL _ t: 'BAY 0l31d8tlO CC 0 ¢ .'3Atl 31 tlONAI t k /' 4 "'- 'BAY HOIHcnv - - - w Eh S I 3Atl 1NVAa8 5¢ fit" d S 'BAY xVdloO - C. o " iz 0 is T k .04" aoo M "ni .� 'BAY 1NOdnG - - - - _ y - _ - - # -- - i 3Atl NOS83W3 A 4. APPENDIX A IIB -2 Calculations % 6.003 acres = 261,490 square feet urban developed (buildings, paving): 130,680 sq ft : 43,560 sq ft (1 acre) = 3.0 acres urban vacant (area without buildings, paving): 96,398.28 sq ft : 43,560 sq ft.(1 acre) = 2.213 acres flood plain (land up to 829 feet): 8,276.40 sq ft : 43,560 sq ft (1 acre) = .19 acre forested: r 26,136.0 sq ft : 43,560 sq ft (1 acre) = .60 acre APPENDIX -3 a: Project Schedule Wood Lake Village Condominiums a. Initiation of construction of phase I (48 to 50 units) (the existing.structures will be demolished prior to completion of phase I) b. Completion of phase I and first occupancy c. Initiation of construction of phase II (27 units) d. Completion and occupancy of phase II e. Initiation of construction of phase III (48 to 54 units) f. Completion of phase III and first occupancy g. Final closing and full occupancy on phase III April 1, 1978 November, 1978 November, 1978 June, 1979 June, 1979 January, 1980 July, 1980 9 APPENDIX 0 IIC -2 Calculations 208 residents Liquid Wastes 75 gal /person /day X 208 + 15,600 Water (includes 19 gal of "lost" water.) 94 gal /person /day X 208 + 19,552 Solid !-taste 3.5 lbs /person /day X 208 + 728 lbs /day 728 X 365 days = 265,720.0 lbs /yr 265,720.0 lbs 2000 lbs.(1 ton) = 132.86 tons /yr Average Daily Trips 3.48 trips per person 3.48 X 208 = 725 ADT :: IA 4 ' 3. . 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G a ` 7„� 1. t ftlt�Fvt+c &- ?3 r �_.. ` RTH `�. _* - �t : L� % V\G�, l GIfB �-- ---) =.'c il0alo1al ur___.._r._ SuD"It,,j Tho Arth.teCtuf6l �n.n SOIL 0XPLOREXIOn JOB NO. 120-1007 VERTICAL SCALE PROJECT WOOD TY, 66TH AND tv �,s t LOG OF TEST BORING NO. EMERSON, MINNEAPOLIS, MINNESdT-A DEPTH DESCRIPTION OF MATERIAL IN 97-3' GEOLOGIC SAMPLE LABORATORY TESTS LABO FEET SURFA E ELEVATION ORIGIN N WL NO. TYPE W D L-L Q" FILL, mostly SILTY SAND, a little FILL 1 HS 1 HS gravel and blacktop, traces of wood rATORYTESTQSU and tile, dark brown, brownish gray, 2 SS brown and gray, frozen to 3' 6 SS � 4 3 4 |2 SILTY SAND, fine grained, light brown to light grayish brown, COARSE moist, medium dense (SM) | 13 SAND, fine grained, light brown to light grayish brown, moist to 331-21 then waterbearing, medium dense to loose (SP) 37 | End of Boring 8 ALLUVIUM lZ SS � b SS b SS 7 SS 8 S3 9 GS lO/ SS� ill SS 9 lJ 3S r�x / -5 | |lJ| E6 WATER LEVEL MEASUREMENTS S! ART I J31AR -..COMPLETE 1-13-77 DATE ] jTIMME SAMPLED CAS711G N Tl DEPTH DE -7 11A111D DEPT S to Non e M S®Ii expioR uon 120 -1007 111 -.51 2 JOB NO. VERTICAL SCALE LOG OF TEST BORING NO. PROJECT WOOD LAKE SCHOOL PROPERTY, 66TH AND EMERSON, MINNEAPOLIS, MINNESOTA DESCRIPTION OF MATERIAL GEOLOGIC SAMPLE LABORATORY TESTS DEPTH NO. TYPE W D L_L. P L Ou IN FEET 97.41 4' SURFACE ELEVATION ORIGIN N WL FILL, mostly SILTY SAND, a little FILL 1 HSIL gravel and blacktop, a few pieces of concrete and tile, dark brown, 10 2 SS dark grayish brown and brown, frozen to 2' 14 3 SS 13 4 SS 15 5 SS 10 6 SS SILTY SAND, fine grained, brown, 6 7 SS moist, loose,�a few lenses (See #1)� FILL U� 1612 COARSE SILTY SAND, medium grained, a little gravel, brown, moist, loose ALLUVIUM 7 g SS (may be fill) (SM -SP) 19 SILTY SAND, fine grained, light grayish brown, moist, loose (SM) COARSE 6 9 SS ALLUVIUM 23 SAND, fine grained, light brown, moist, medium dense (SP -SM) 13 10 SS 27 SAND, fine grained, light brown, moist, dense (SP) 16 11 SS SAND, fine grained, gray, watery 7 12 SS bearing, loose (SP) 37 End of Boring #1 - of sand (may be fill) (SM -SP) WATER LEVEL MEASUREMENTS START�E --1 ��` COMPLETE 1 -1 3- 77 METHOD 3 i — t �p DATE TIME SAMPLED DEPTH CASING DEPTH CAVE -IN DEPTH BAILE=DEPTHS WATER LEVEL 1 -13 2:10 3?' 341 ' 34: w - ? 1 -13 2:30 371 None 11-'Z' - - to None [;HEW CF,IEF to ; SE -2 (70 -A) SOIL t3XPLORBt10n r cX3ctr2 111 .51 4 120-1007 JOB NO. VERTICAL SCALE LOG OF TEST BORING NO. PROJECT WOOD LAKE SCHOOL PROPERTY, 66TH AND EMERSON, MINNEAPOLIS, MINNESOTA DEPTH DESCRIPTION OF MATERIAL GEOLOGIC GEOLOGIC SAMPLE LABORATORY TESTS FEET FSURFACE ELEVATION 96� 1 I ORIGIN N WL NO. TYPE W D LLL Qu P.L. SILTY SAND, dark brown, frozen, a FILL OR 1� layer of blacktop at the surface(SM) COARSE 1 HS SILTY SAND, fine grained, dark brawn ALLUVIUM 3 to brown frozen (SMI� 2 SS SILTY SAND, fine grained, brown, moist, loose (SM -ML) COARSE ALLUVIUM 8 3 SS SAND, fine grained, light brown, moist, medium dense to loose to 12 5 SS dense (SP -SM) 5 6 SS 10 7 SS 20 9 SS 2 2 - -- End of Boring WATER LEVEL MEASUREMENTS START —COMPLETE 1-13- ! DATE TIME SAMPLED DEPTH . CASING DEPTH CAVE -IN T DEPTH HAILED DEPTHS WATER METHOD 1-133:20 221 19' - 1-13 3:30 22' None ", -; I< Nara, -- - - - ^_ -- - — -- -- - - -- - -- to j _ - -� - -� _ ro I CREW CHIEF X 11 i "e . F SOIL expic r-n3tion 120 -1197 lt�c5 -LOG OF TEST BORING NO. S JOB NO. VERTICAL SCALE PROJECT ADDITIONAL BORINGS WOOD LAKE SCHOOL PROPERTY 66TH AND EMERSON MINNEAPOLIS START 3 -7 -77 COMPLETE 3- 7 -77 DESCRIPTION OF MATERIAL TIME SAMPLED DEPTH SAMPLE LABORATORY TESTS NO. TYPE W D L.L. P'L' Ou DEPTH IN ('-SURFACE ELEVATION N WL FEET r -7 220 26?2' None 14 %' �o None to cREw cFUEP Mi shl er to 1 HSA FILL, mostly SILTY SAND, some sand, a little gravel, brick and concrete, traces of wood, 2 SS black, brown, light brown, dark brown, grayish brown and gray, frozen to 3z' 31 3 SS 2 4 SS 3 S SS S 6 SS 3 7 SS S 8 SS 19 SAND, fine grained, light brown, moist, medium 11 9 SS dense (SP -SM) 23 - SAND, fine grained, light brown, moist, medium dense (SP) 21 10 SS 2 b i -- End of Boring + WATER LEVEL MEASUREMENTS START 3 -7 -77 COMPLETE 3- 7 -77 DATE TIME SAMPLED DEPTH CASING DEPTH CAVE -IN DEPTH BAILED DEPTHS WATER LEVEL 3% HSA 01-24-Y METHOD 4 @ 2:05_ I _ -7 2: 05 26'x' 24 2' 26 z' to None -7 220 26?2' None 14 %' �o None to cREw cFUEP Mi shl er to SOIL exPLORatiOn oornRarw JOB NO. 120-1197 VERTICAL SCALE 111 -5 LOG OF TEST BORING NO. 6 PROJECT ADDITIONAL BORINGS, WOOD LAKE SCHOOL PROPERTY, 66TH AND EMERSON, MINNEAPOLIS,MN DEPTH DESCRIPTION OF MATERIAL SAMPLE LABORATORY TESTS IN FEET SURFACE ELEVATION 138.8' N WL NO. TYPE W D L.L. Ou P.L. 1 HSA FILL, mostly SILTY SAND, some sand, a trace of gravel and brick, pieces of concrete at 201, brown, black, dark brown, grayish brown and gray 8 2 SS frozen to 12' 3 3 SS 2 4 SS 3 5 SS 3 6 SS 4 7 SS 4 8 SS 19 9 SS 212 SILTY SAND, fine grained, light grayish brown, 17 10 SS moist, dense to loose, a few lenses of silt and sand below 23' (SM) 8 11 SS 262 End of Boring WATER LEVEL MEASUREMENTS START j -7 ^77 __.COMPLETE 3-7-77 DATE TIME SAMPLED DEPTIH CAVE-IN DE DEPTH BAILED DEPTHS WATER METHOD 3 4. HSA 0' - 242' @ 11:35 3 -7 11:35 262' 242' 261 _ to None 3 -7 11:50, 262' None 142' to None to CREW CHIEF Mishler to I 11W.17 177 -A; S®IL expLO EtIOn ccxwarw JOB NO. 120-1197 VERTICAL SCALE 1=5 f LOG OF TEST BORING NO 7 PROJECT ADDITIONAL BORINGS, WOOD LAKE SCHOOL PROPERTY, 66TH AND EMERSON, MINNEAPOLIS,MN DEPTH IN FEET DESCRIPTION OF MATERIAL SURFACE ELEVATION 137.0' N WL SAMPLE LABORATORY TESTS NO. TYPE W D P.L. Du FILL, mostly SILTY SAND, some sand, a trace of 1 HSA gravel, black, brown, dark brown and grayish brown, frozen to 32' 2 SS 4 3 SS 5 4 SS 5 5 SS 6 6 SS 5 7 SS 18 6 8 SS SILTY SAND, fine grained, light grayish brown, moist, loose to medium dense (SM) 11 9 SS 10 10 SS 262 End of Boring WATER LEVEL MEASUREMENTS START -7 -7 7 COMPLETE GATE TIME SAMPLED DEPTH CASING DEPTH CAVE -IN DEPTH BAILED DEPTHS WATER LEVEL METHOD 3 q HSA 0'--24 2 t @ 10 OS 3 -7 1.005 261' 241.' 261 -.' _ to None 3 -7 10:20 2611 None 15' to None - _ to - CREW CHIEF Mi.shler to SOIL exPLOREMor. JOB NO. 120 -1197 VERTICAL SCALE 111 =5 I LOG OF TEST BORING NO. 8 PROJECT ADDITIONAL BORINGS, WOOD LAKE SCHOOL PROPERTY, 66TH AND EMERSON, MINNEAPOLIS,MN DEPTH DF,SCRIPTION OF MATERIAL SAMPLE LABORATORY TESTS NO. TYPE W D ?.L Qu IN FEET SURFACE ELEVATION 137' 1' N WL 1 HSA FILL, mostly SILTY SAND, some sand, a little silt, gravel, brick, wood and plastic, light brown, brown, dark brown and some black, frozen 5 2 SS to 11' 16 3 SS 6 4 SS 7 S SS 4 6 SS 6 7 SS 16 8 SS 19� SILTY SAND, fine grained, light grayish brown, 18 9 SS moist, dense to medium dense (SM -SP) 13 10 SS 26' End of Boring WATER LEVEL MEASUREMENTS START 3 -4--77 COMPLETE 3-4=7.. 7 DATE TIME SAMPLED DEPTH CASING DEPTH CAVE -IN DEPTH BAILED DEPTHS V✓ATER LEVEL METHOD i 01-24:111 @_3Q r, —_ 3 -4 3:15 26%' 24 %' 26 %' to None 3 -4 3:30 26 %' ^None 15%' to None to I CREW CHIEF Mishler to SOIL eXPLORStIor. JOB NO. 120 -1197 VERTICAL SCALE 1" =5 11 LOG OF TEST BORING NO. 9 PROJECT ADDITIONAL BORINGS, WOOD LAKE SCHOOL PROPERTY, 66TH AND EMERSON, MINNEAPOLIS,MN DEPTH FEET DESCRIPTION OF MATERIAL SURFACE ELEVATION 137.21 N WL SAMPLE LABORATORY TESTS NO. TYPE W D P.L: Qu FILL, mixture of CLAYEY SAND, SILTY SAND and' 1 HSA -SILT, black and brown, frozen to 11' 17 2 SS 4 SAND, fine grained, light brown, rather dry, 11 3 SS medium dense, some lenses of silty sand (SP -SM) 10 4 SS 11 5 SS 11z End of Boring WATER LEVEL MEASUREMENTS START 3 -4 -77 COMPLETE 3 -4 -77 DATE TIME SAMPLED DEPTH CASING DEPTH CAVE -IN DEPTH BAILED DEPTHS WATER LEVEL METHOD 01-9-1-g-1— @ - — 3 -4 1:45 11' -' 9'5' ll' to None 3 -4 1:50 111-21 8' = to None —None to CREW CHIEF Mishler to GENERAL NOTES WATER LEVEL SYMBOL —W Water levels shown on the boring logs are the levels measured in the borings at the time and under the conditions indicated. In sand, the indicated levels can be considered reliable ground water levels. In clay soil, it is not possible to determine the ground water level within the normal scope of a test boring investigation, except where lenses or layers of more-pervious waterbearing soil are present and then a long period of time may be necessary to reach equilibrium. Therefore, the position of the water level symbol for cohesive or mixed texture soils may not indicate the true level of the ground water table. The available water level information is given at the bottom of the log sheet. DESCRIPTIVE TERMINOLOGY DENSITY TERM DRILLING & SAMPLING SYMBOLS Very loose LABORATORY TEST SYMBOLS SYMBOL DEFINITION SYMBOL DEFINITION C.S. Continuous Sampling W Moisture content - percent of dry weight P.D. 2 -3/8" Pipe Drill D Dry density - pounds per cubic foot C.O. Cleanout Tube LL, PL Liquid and plastic limits determined in 3'% HSA 3' /a" I.D. Hollow Stem Auger accordance with ASTM D 423 and D 424 4 FA 4" Diameter Flight Auger Qu Unconfined compressive strength - pounds per 6 FA 6" Diameter Flight Auger square foot in accordance with ASTMD2166 -66 2' /z C 2'/:" Casing Additional insertions in Ou column 4C 4" Casing D.M. Drilling Mud Pq Penetrometer reading- tons /square foot J. W. Jet Water Ts Torvane reading- tons /square foot H. A. Hand Auger G Specific gravity - ASTM D 854 -58 NXC Size NX Casing SL Shrinkage limit - ASTM D 427 -61 BXC Size BX Casing pH Hydrogen ion content -meter method AXC Size AX Casing 0 Organic content - combustion method SS 2" O.D. Split Spoon Sample M.A.* Grain size analysis 2T 2" Thin Wall Tube Sample C* One dimensional consolidation 3T 3" Thin Wall Tube Sample Oc* Triaxial compression *See attached data sheet and /or graph WATER LEVEL SYMBOL —W Water levels shown on the boring logs are the levels measured in the borings at the time and under the conditions indicated. In sand, the indicated levels can be considered reliable ground water levels. In clay soil, it is not possible to determine the ground water level within the normal scope of a test boring investigation, except where lenses or layers of more-pervious waterbearing soil are present and then a long period of time may be necessary to reach equilibrium. Therefore, the position of the water level symbol for cohesive or mixed texture soils may not indicate the true level of the ground water table. The available water level information is given at the bottom of the log sheet. DESCRIPTIVE TERMINOLOGY DENSITY TERM "N" VALUE Very loose 0 -4 Loose 5-8 Medium Dense 9 -15 Dense 16 -30 Very Dense Over 30 CONSISTENCY TERM "N" VALUE Soft Medium Rather Stiff Stiff Very Stiff 0 -4 5 -8 9 -15 16 -30 Over 30 Standard "N" Penetration: Blows per foot of a 140 pound hammer falling 30 inches on a 2 inch OD split spoon. RELATIVE PROPORTIONS TERM RANGE Tra ce 0 -5% A Little 5 -15% Some 15 -30% With 30 -50% PARTICLE SIZES Boulders Gravel Coarse Fine Sand Coarse Medium Fine Silt and Clay Note: Sieve sizes shown ,ire U.S. Svinda:d SE- 4(70A) Over 3" '/a"-3" i# 4 %" 044110 004140 !!4041200 D( >termined by plasticity ch aracte ristics Major divisions Group symbols CLASSIFICATION OF SOILS FOR ENGINEERING PURPOSES ASTM Designation: D 2487 — 69 AND D 2488 — 69 (Unified Soil Classification System) Typical names Classification criteria Well-graded gravels and GW Cu= 260 greater than 4; c o � (030/2 or no fines E m ° rn 'a• U > m Atterberg Limits plotting in Poorly graded gravels and f0 — w � � U y ° Not meeting both criteria for GW y � m dual symbols. N v GP z;: 0 U �' 0 si It mixtures O 0 a j8z Atterberg I i m i is plot - N d than4 s m. C O O C7 > CD ° o` m GM N E c a , , greater than 7 o � 0 N Well-graded sands and gra- 3 velly sands, little or no uJ — o LO fines o 0 0 N z O N N 'L V1 GC C ° m C� co z z 00 C 'p gravelly sands, little or no = N N N .N Not meeting both criteria for SW ` C y o m z CL -ML -- , ' co OL ° ` c o Na SW C LO line or P.I. less U Ln M m — than 4 ting in hatched area a.. vl o ° -°ti ul c in d _(D to U SP U a O N m °z cn LO N c SM C (b �- -C n• C 3 O N C C SC ca n N ML m c T O O U 0 C CL ca ._ u) E ° T Na o y O _, OL N N O z m ul c ai o 'n MH N n. C O1 ul s m c LL ° E 75 $ co c N CH to rn O 0 E (n a 3 OH Q J T.V V! CO �T'5 Pt CLASSIFICATION OF SOILS FOR ENGINEERING PURPOSES ASTM Designation: D 2487 — 69 AND D 2488 — 69 (Unified Soil Classification System) Typical names Classification criteria Well-graded gravels and Cu= 260 greater than 4; gravel -sand mixtures, little N ° (030/2 or no fines E CZ= between 1 and 3 ° rn 'a• Dto xO6o Atterberg Limits plotting in Poorly graded gravels and f0 — gravel -sand mixtures, little U y ° Not meeting both criteria for GW or no fines Cn W ° N c vii U) m ° dual symbols. Silty gravels, gravel -sand- z;: 0 U �' Atterberg limits below si It mixtures O 0 a "A" line or P.I. less Atterberg I i m i is plot - o rr ;� c7 0 m m • . • than4 ting in hatched area are borderline classifi- cations requiring use Atterberg limits above C 1 a a y gravels, gravel - "A" line with P.I. of dual symbols sand -clay mixtures a , , greater than 7 p . ul . m > > Well-graded sands and gra- than 6; Cu = DD6o velly sands, little or no �' 'm greater (D3o) 2 fines o 0 0 CZ= between 1 and 3 O N N 'L V1 Dto xD6o Poorly graded sands and co z z 00 gravelly sands, little or no = N N N .N Not meeting both criteria for SW fines y o m z CL -ML -- , ' ° o � CJ OL Silty sands, sand -silt mix- c c Atterberg limits below "A" 0 °c N line or P.I. less Atterberg l i m i t s plot - tures m — than 4 ting in hatched area vl o ° -°ti ul are borderline classifi- cations requiring use Clayey sands, sand -clay mixtures Inorganic silts, very fine sands, rock flour, silty or 6C clayey fine sands Inorganic clays of low to 5C medium plasticity, gravelly clays, sandy clays, silty clays, lean clays x 4C m Organic silts and organic silty clays of low plasticity •Z5 3C .y Inorganic silts, micaceous _@ or diatomaceous fine sands CL or silts, elastic silts 2C Inorganic clays of high 10 plasticity, fat clays 7 4 Organic clays of medium to 1 0 0 i0 20 30 40 50 60 70 80 90 100 Liquid Limit Atterberg limits above of dual symbols "A" line with P.I. greater than 7 Plasticity Chart For classification of fine - grained soils and fine fraction of coarse- - grained soils. CH Atterberg Limits plotting in hatched area are borderline classifications requiring use of dual symbols. Equation of A -line: PI =0.73 (LL -20) co OH and MH CL CL -ML -- , ' ML and OL �� -y high plasticity Peat, muck and other highly organic soils *Based on the material passing the 3 in. (76 mm) sieve. . Afl7�KD \yC � Wood Lake School Site - proposed use cut and fill tabulation calculated by A. F. Ritter. 1. Excavation for new building construction: a. 3631 c.y. b. 2660 c.y. c. 4620 c.y. d. 2902 c.y. 13,813 c.y. Sub -Total i 2. On site cut: e. 720 c.y. f. 1160 c.y. n. 60 c.y. 1940 c.y. Sub -Total 3. On site fill: k. 80 c.y. h. 450 c.y. i. 6080 c.y. j. 790 c.y. k. -450 c.y. 1. 8060 c.y. n. 142 c.y. 16,052 c.y. Sub -Total 4. Soil removal and replacement for soil correction: o. 3627 c.y. p. 2417 c.y. q. 173 c.y. 6217 c.y. Sub -Total 5. Unaltered area of site in terms of grad change - 82620 square feet. 6.- Area of site within flood plain: r. 2000 s.f. s. 1500 s.f. t. 4750 s.f. 8250 s.f. Sub -Total 7. There will be 8060 c.y. of fill within flood plain area displacing 1770 c.y. of actual flood plain capacity. December 6,1977 From: Alexander F. Ritter Richfield Development Corporation Woodlake School Site.Erosion Control Plan The following measures will be taken to prevent erosion: A. Area between proposed North buildings and marsh: After excavation and soil correction grades between the structures and the marsh will be kept -at less than 10% until the buildings are finished and that portion of the site is ready for finish grading. These areas will be seeded with rye and mulched to prevent erosion during this period. As soon as the buildings are complete, finish grading will be accomplished. Final grades will not exceed 30 %. Revegitation will be started immediately after grading. Areas closest to the marsh will be planted with marsh grasses, areas from the marsh grasses to within 15 to 20 feet a# the buildings will be planted with brome grass and /or birds foot Trefoil and the 15 to 20 foot band next to the buildings will be sodded and staked. Water from the building roofs will be collected in gutters and carried via down spouts to the ground. Water will be discharged into rock lined energy dissipation temporary ponding areas.. B. Main site water flow: Water from the 66th Street side of the Southern and Western buildings will reach the Richfield storm water sewers in 66th Street via catch basins and storm drains. Water from the west parking area will reach the Richfield storm water sewers in Emerson via separate catch basins and storm drains. Water from the central recreational area of the site will flow to a catch basin in the Northeast portion of the recreation area and flow to the Richfield marsh area via storm drain. A temporary sedimentation ponding area will be provided around this catch basin during construction and energy dissipation will be provided at the storm drain outlet through a rock dam and small ponding area. A small swail at the top on the slope leading to Richfield Marsh will prevent water from the recreation area from running down the bank leading to the marsh. C. Area between North buildings and recreational area: This area will be seeded with rye and mulched immediately following rough grading. After final grading this area will be sodded and staked. D. Area adjacent to garage entry at Northeast corner at Rae Drive: The existing slope at this location is greater than 35 %. Proposed grade will be similar but will provide erosion control through railroad tie terracing or 3M type aggregate binder around planting openings. The area will be planted with crown vetch or Virginia creeper. Page two E. General: In areas where there is still a likelihood of some limited erosion during construction, hay bales will be placed adjacent to the marsh to act as a temporary sedimentation settling area. IIIB1 Calculations Woodland 15,689 sq ft = 261,490 sq ft = .06 = 6% Brush 10,459.6 sq ft = 261,490 sq ft = .04 = 4% Grass 96,398 sq ft : 261,490 = .36 = 36% Marsh 8,276 sq ft 261,490 sq ft = .03 = 3% APPENDIX 15 �pps.�u 8�l Mood Lake School Sife - proposed use tree cover near lake to be removed. Cal - culated by A. F. Ritter. 1. Trees and bushes near lake are growing out of filled bank area and will be removed to facilitate soil correction and project development. 2. Proposed tree area to be removed (includes brush): a. 10,170 b. 15,070 Area on Wood Lake site C. 720 25,960 square feet - Sub -Total d. 5,480 e. 810 6,290 square feet - Sub - Total 32,250 square feet - Total QTY OF RICHFIELD, MINNESOTA Inter— Office Memorandum DATE November 28, 1977 To Dick Krier, Planning FROM Randy Hughes, Wood Lake Nature Center SUBJECT Development of Wood Lake School site Due to the fact that it is so late in the year, I was unable to do an extensive evaluation of the vegetation of Richfield Lake and the surrounding area. However, I do not believe there are any rare or endangered plant species in the area. It is a typical overgrown cattail marsh common to this area. Ali- r.1a tZC l CITY OF RICHFIELD, MINNESOTA Inter— Office Memorandum DATE November 28, 1977 Dick Krier, Planning TO FROM Randy Hughes, Wood Lake Nature Center + SUBJECT Development of Wood Lake School site It is my opinion that the removal of the tree and brush line and regrading of the south shore of Richfield Lake in the area of the old Wood Lake School will eliminate some wildlife habitat in that area. The species primarily effectted would be pheasants, cottontail rabbits, squirrels, and probably some of the common varieties of songbirds in the area. In this grading procedure I believe care should be taken to not extend the 411 line any further into the marsh than it presently lies. The area should also be densely replanted in trees and shrubs to prevent erosion into the lowland area. If varieties were selected to provide food and cover for wildlife the hillside could probably be made more beneficial to wildlife than it presently is, as well as provide a windbreak for the building complex. �r� APPENDIX tl Wood Lake School Side - proposed usage impervious areas take off tabulation calculated by A. F. Ritter 1. Building Ground Cover a. 13,056 b. 13,056 c. 13,056 d. 21,788 \ 60,956 square feet 2. Road & Parking a. 1440 b. 1080 c. 4480 d. 360 e. 11264 f. 2880 g. 540 h. 1440 i. 2160 j. 1440 k. - 900 1. 900 m. 2112 n. 2112 o. 1520 p. 1520 q. 288 r. 2832 S. 620 t. 50 U. 50 39,988 square feet 3. Sidewalks (all numbers represent a walk 5'0" wide) a. 450 i. 26 q. 90 y. 25 gg. 12 b. 15 j. 40 r. 45 z. 124 hh. 30 C. 36 k. 45 S. 32 aa. 60 ii. 10 d. 30 1. 90 t. 24 bb. 30 jj. 15 e. 90 M. 32 U. 45 cc. 100 kk. 60 f. 45 n. 15 v. 500 dd. 30 11. 15 g. 60 0. 15 w. 240 ee. 90 mm. 120 h. 60 P. 110 x. 200 ff. 18:1 nn. 68 3892 X 5' sidewalk Width = .19,460 square feet 00. 68 pp. 15 qq. 180 rr. 45 ss. 30 tt. 250 a.,M -2- 4. Sumnar a. Building ground cover b. Roads and parking c. Sidewalks 60,956 39,988 19,460 d. Total 119,876 square feet J f Wood Lake School Site - existing impervious areas takeoff tabulation calculated by A. F. Ritter. 1. School buildings a. two -story brick 23,978 b. one and one -half story stucco 6,385 c. Total 30,363 square feet 2. Roads, parking and asphalt playground a. 19,470 b. 156 C. 1,020 d. 1,824 e. 256 f. 3,120 g. 1,200 h. 1,500 i. 744 j. 4,340 k. 1,620 1. 1,710 M. 720 n. 9,460 o. 2,016 P_ 16,758 q. 1,080 r. 7,888 S. 800 t. 4,620 U. 3,224 V. 1 ,782 X. 672 Y. 450 86,430 square feet f.11I irlk kAhi7�� A 10 ft, C>S►c� �n J'2�t r�r, ,y. ANJ��S1Ni, �'i��{: ���'-o" FKoi�l N�f`�Cti`�'�T �,Xol) + T klwe,.; I f+- dto= 1 ,, 'SO �� • f N/1 UN W, 5 r. 0 �Ia 11°1,',! NZE, -to `©l8Yc-AS To 'ACA �J&Yr,.L A 79 'To 15 ),- kp %j J J (,Do Pt V-k%A oC A 10- rL ?lkofc,,(-A9 119AA: I r-L. Pf n n io it , PAS "�7, G,V-A;S. NOTC, To cclAvlr-l� TO IXIA LSV,I- Al" -71C;5! to ............ ............ ............ ............ ..... ............ .............. 15 ),- kp %j J J (,Do Pt V-k%A oC A 10- rL ?lkofc,,(-A9 119AA: I r-L. Pf n n io it , PAS "�7, G,V-A;S. NOTC, To cclAvlr-l� TO IXIA LSV,I- Al" -71C;5! to 4L ...... "21 k-r-. i1. Appelklvty- 3 RICHFIELD WOODLAKE 11 -16 -77 - JTIMATED HEATING & VENTILATION LOAD 23 BTU /sq. ft. x 136,800 sq. ft. = 3,146 MBH 8,248 degree days per heating season. 60% of heating season is on gas and 400 on oil. Gas 8,248 x 0.60 x .0049 x 3,146 x 0.775 x 1003 ft. /therm = 5,935,751 cu. ft. /yr. Oil (Total Estimated Load Per Year) 8 -248 x 0.40 x .00347 x 3,146 x 0.778 =.28, -023 Gal./yr. nn1ArCTTr IJATFR FTFATT �1G 295 people x 24 Gal /Day = 7,080 gal. /day. .7,080 G/D 'x 1" BTb x •100oF. x 8.33 LIB /G = 9,076 MBH /Day .. 0 1 L LP `9,076 MBH /D-ay x 365 Day /Yr- = 3,312,687 Cu. Ft. /Yr. TOTAL ESTIMATED GAS LOAD PER YEAR Heating $ Ventilation Domestic Water 5,935,751 3,312,687 9.2-48,438 -cu: ft: /yr. ESTIMATED- ELECTRICAL LOAD . 43'Units E 30.0 KWH /Mo. x 12 Mop /Yr,) +� 900 1\'I4H /Air Con = 348 300 KtiVH /�" r 72 Units (350 KWH /Mo. x 12 Mo. /Yr.) + 900 KWH /Air Cond� = 367,200 KWH /Y. 14 Units EC400 KWH /Mo, x 12 Mo. /Yr.) + 900 KWH /Air Cond. = 92,400 KWH /Y" -- -�-- -- TOTAL KWH /Yr% 807,900 1 ui III o � � J Q a a 7 a as =mow = 7 r ac�c J L yWa _J L - ., it.*is�T —.. 1Y.�U'bL �2 - �s.w..i� _ — r�...•� "_= �ski(Y13-�— L > zz� z o __ Yo " g Lutt � wL .�'Y / / = Eo oh s'15 a i- 74.< I¢4a O� v Jt I• e e I �� 'C' Y § §- N H-1 Ir _ 1La �'I NpP�asn � x 1 � i t y '7 '3AV SN3A31S IL 2 cJ A.- 'T\ ._ , ...� - -y' ; {. ,•' r �` "+ i - - ; 0J tiff 4.ns ; VVV�Vr��/ 4 3nY 194 • - - - 2 _ r[; LL ,t _ - 2 Y Y Y 47 Q It B -i ,.tj i i r. .. � � -•a ,,� r' -p { r I� : -Q : 0 v - "__. - - O C C N to 0 C C � i!1 i X_ 1 t __� - s r .aa ti- Ld , 1 :R �-, rT h h w 0 !• 1• tl if ;� ` l.'. iiLi • r , sry •BAV 131100N .00.. ..• ..•..•.....•. oon 000 IAV 1311001N • oIS ii Q}Q ...e.O. rj �........�g a..._ m O osssl _ Pz if 1M II �r,.;'Y 1 J. 3 I ® t ^. « Fr.. •'- r .� q f , iy i. - n �+ • Q E1 J z r ° '3AVJ130S1Y1@ .1_ - '! 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'3AY NOSWBY 3 r�. a •,q j•I(a' 'ti '.I4' 'Y•. r� r�1:.0 :� ',� - -� .r •.,i: _ •.� _.t {�, t J� �s� .. '4,v �- _, •' .. � . __ _ ` .'y • ., -. .. ^000 t 000 • y ; Ne, ./' -..:'_ - t.�', .• cam. .�`t�... r-e .,.�i''�'n =4• -. -»A -# ,�,: 5,., r _ r i =-t+; • , ^��5, . ' -5 =•• .,, , •' +t 1 ,yam AGE OR + PAST GRADE + 73 -74 AGE 0 + 366 AGE 1 + 457 AGE 2 ♦ 588 AGE 3 + 587 AGE 4 ♦ 586 0 -- 4 ♦ 2584 KIND + 578 GR 1 + 575 GR: 2 + 544 GR 3 + 549 GR 4 + 612 GR 5 + 643 1 — 5 + 292. K -5 ♦ 3501 GR 6 ♦ 665 GR 7 + 72:3 1388 GR 8 + 754 GR 9 + 786 8 — 9 ♦ 1540 6 —9 ♦ 2928 GR 10 ♦ 871 GR 11 + 837 GR 12 ♦ 808 ---------------- K — 12 + 87445 RICHFIELU SCHOOL DISTRICT 74 -75 346 428 452 582 566 2374 546 5122 542 520 517 585 2686 3232 616 686 1302 718 791 1509 2'811 788 826 82 24:7 8480 # ENR 75-76 3 9Ell 479 479 471 588 2413 546. 50 498 526 512 510 2554 311.0 592 64' 1 1 G 23 _� _ c I 687 742 142' 2664 799 9 763 827 2 V:? -1C-� 4pppswbtl 1 to 3LLMENT BATA + FUTURE ENROLLMENT PROJECTIONI' 76 -77 77 -78 + 78-79 79 -8 0 80-81 81 -82 82 -8.3 409 409 + 423 414 + 422 365 + 444 392 + 443 421 + 2141 2001 493 370 378 369 343 339 339 --------------- ----------------------- - - - - -- 494 467 + 362 350 341 .317 314 478 476 + 444 344 333 324 302 �2 479 462 + 459 428 331 321 312 496 452 + 439 43E. 407 314 3 0C 489 475 + 435 42'2 419 391 302 24=6 2332 + 2139 1980 18?1 1667 1535 2929 2702 + 2517 2349 2174 2006. 1 874 493 472 2 + 462 423 411 408 arc 0 610 491 + 481 470 431 418 415 1103 _= +r',=; ♦ 943 893 842 826 795 638 596 + 485 475 5 464 425 413 728 663 ♦ 622 506 496 484 444 1366 1259 + 1107 981 960 909 857 2469 2222 + 2050 1874 1802 1735 1652 731 720 ♦ 658 617 502 492 480 7.77 715 a 699 639 599 487 477 756 732 ♦ 695 679 621 582 47.3 22r4 21r r' + 205:' V-+ -�5 1722 156.1 14 =:rl ------------------------------------------- 7662 7 091 + 6619 615:= 569 5302 4956 4ppc tav t,4 l CITY OF. RICHFIELD, MINNESOTA • Inter - Office Memorandum DATE 11/22/77 TO Richard Krier, Director of Planning FROM R.L. Simpson, Fire Chief SUBJECT WOODLAKE SCHOOL SITE DMLOPM -T The Richfield Fire Division has sufficient resources to handle the anticipated service load that would be required by the proposed multi- family housing project for the Wood- ..lake school site. The above is predicated upon the complex being completely equipped with an automatic fire extinguishing system and that such development is constructed as per site plans shown to this writer. Any changes in the site layout or in the building plans (which have not been offered for review) could cause a change in the service load expected. This change could increase or decrease the anticipated services needed depending upon the change. CITY OF RICHFIELD, MINNESOTA Inter — Office Memorandum DATE December 1, 1977 TO Planning Department FROM Captain Richardson SUBJECT Woodlake School Site It would appear from looking at the proposed plans for the multiple housing project on the Woodlake School site, that we do have suffic- ient departmental resources to handle any problems that might occur in this project. I do feel though. that the plans for median barriers and left turn lanes into the project from 66th Street is a must. RR/ go APPENDIX 11 IIIJ5 - Calculations 208 persons Water 94 gal /person /day X 208 = 19,552 gal /day Waste Water 75 gal /person /day X 208 = 15,600 gal /day Schools 1 pupil per two and three bedroom units 72' two. bedroom units 14 three bedroom units 1 X 72 = 72 pupils 1 X 14 = 14 pupils 86 possible pupils C-i ; A 1.1., 4-- 3.5 lbs /person /day X 208 = 728 lbs /day 728 X 30 days (1 month; = 21,840 lbs /mo 21,840: 2000 lbs (1 ton) = 10.92 T /mo CITY OF RICHFIELD, fAINNSSOTA Office of City Manager Council Letter No. 371 Agenda December 12, 1977 The Honorable Mayor and Members of the City Council City of Richfield Gentlemen: Subject: Loan to HRA for Purchase of Property in the L /H /N Area Mr. joong MonMoy, property owner of 6600 Graham Avenue, has re - quested that the Richfield Housing and Redevelopment Authority purchase his single family home, which is located in the acquisition area for the planned home improvement center component of the L /H /N redevelopment project. (See attached map) . Because the HRA has no acquisition funds at this time for property in this area, it will be necessary to borrow funds from the city to accomplish the purchase of this property. Therecommended procedure provides that the HRA and the city execute a loan agreement for the borrowing of money, with the understanding that the HRA will repay the borrowed funds to the city with interest. The city council will have to execute the attached loan agreement and resolu- tion before the HRA may proceed with the purchase of this property. The estimated amount of the city loan will be $50, 000. This amount will cover the purchase price of the property, as well as the cost of relocation. Appraisals have been solicited for this property. An adjusted appraisal, com- pleted by janski and Associates established a value of $43, 500. The property owner also solicited an appraisal, which established a valuation of $52,000. However, the property owner has agreed to a purchase price of $45,500. In addition, the tenants presently occupying the property will. be eligible for a $500 moving expense payment and a rent supplement payment not to exceed $4,000. The loan from the city will be paid back with interest by the end of three years. The interest rate would be five (5 %). percent per annum on the unpaid balance. The loan will be repaid on the following basis: Council Letter No. 371 -2 December 12, 1977 1. Until the land is needed for the L /H /N project, the home will be rented,: The interest on the loan will be paid through rental on the house. 2. The principal will be repaid either from proceeds of a bond issue for the home improvement center redevelopment, or from resale of the home on the open market, should the HRA not need the land for the planned home improvement center. It is recommended that the city council adopt the attached resolution, authorizing execution of the loan agreement with the HRA providing for acquisition of this property. Respectfully submitted, Wayne. S. Burggraaff City Manager WSB /eja cc: Planning and Redevelopment Director Finance Director RESOLUTION NO. RESOLUTION AUTHORIZING THE EXECUTION OF AN AGREEMENT TO LOAN MONEY TO THE RICHFIELD HOUSII`(� AND REDEVELOPMENT AUTHORITY AND PROVIDING FOR THE PERFORMANCE THEREOF BY ADVANCEMENT FROM THE SEWER UTILITY FUND WHEREAS, the HRA desires to borrow money for the purpose of purchasing certain real property pursuant to and in furtherance of the L /H /N Redevelopment Project heretofore adopted by the City and the HRA, said real property being described as follows: Lot 11, Block 3, Fairwood Shores Addition, Hennepin County, Minnesota, and WHEREAS, the purchase of said real.property is necessary to accomplish the purposes of said L /H /N Project, and WHEREAS, the HRA is authorized by Minnesota Statutes, Section 462.445, to purchase real property and to borrow money from the City therefore, and WHEREAS, the City is authorized by Minnesota Statutes, Section 462.581, to make loans to the HRA in aid of projects. NOW, THEREFORE, BE-IT RESOLVED BY THE CITY OF RICHFIELD: 1. That the Mayor and City Manager be, and hereby are, authorized to execute, as agents to the City of Richfield, an agreement with the Richfield Housing and Redevelopment Authority, entitled "Loan Agreement ", a copy of which is hereby given Clerk's File No. HRA- and is ordered placed on file. 2. That the City Clerk be, and hereby is directed to advance monies to the Richfield Housing and Redevelopment Authority in such amount and at such time as is provided in the above agreement, said monies to be taken from the Sewer Utility Fund and to return to the Sewer Utility Fund all payments made by the Housing and Redevelopment Authority pursuant to said agreement. Passed by the City Council of the City of Richfield this day of , 1977. Loren L. Law Mayor ATTEST Thomas J. Moran City Clerk 0 LOAN AGREEMENT THIS AGREEMENT, entered into as of this 12th day of December, 1977, by and between the Housing and Redevelopment Authority of Richfield, Minnesota, a body public and corporate (hereinafter the "HRA ") and the City of Richfield, a municipal corporation organized and existing under the laws of the State of Minnesota (hereinafter the "City "). WITNESSETH: WHEREAS, the HRA desires to borrow money for the purpose of purchasing certain real property pursuant to and in furtherance of the L /H /N Redevelopment Project heretofore adopted by the City and. the HRA, said real property being described as follows: Lot 11, Block 3, Fairwood Shores Addition, Hennepin County ", Minnesota, and WHEREAS, the purchase of said real property is necessary to accomplish the purposes of said L /H /N Project, and WHEREAS, the City desires to lend money so that said purchase may be accomplished, and WHEREAS, the HRA is authorized by Minnesota Statutes, Section 462.445 to purchase real property and to borrow money from the City therefore, and WHEREAS, the City is authorized by Minnesota Statutes, Section. 462.581 to make loans to the HRA in aid of projects. NOW, THEREFORE, for and in consideration of the mutual tenants and agreements herein set forth, the HRA and the City do-hereby agree as follows: I. The City agrees to advance to the HRA money in an amount not to exceed $50,000, said amount to be equal to the cost of acquisition of said property including relocation payments; and II. The HRA agrees to repay the sum so advanced, plus interest, as follows: A. Interest shall accrue on unpaid principal at the rate of 5.00% per annum from the date of advancement until repaid. B. Payments shall be applied first to reduce interest accrued at the date of payment, and the remainder, if any, shall reduce the principal balance. C. The HRA may make payment or payments in any amount and at any time, provided that the entire unpaid principal together with accrued interest shall be repaid no later than three years from the date of advancement of funds to the HRA. 3 a III. This agreement shall be void and of no effect if advancement of funds by the City as provided herein is not made before January 31, 1978. . Dated: Dated: HOUSING AND REDEVELOPMENT AUTHORITY By Its Chairman By Its Executive Director CITY OF RICHFIELD. By Its Mayor By Its City Manager • .7 J 1. AV4. 4OF ly wit 7, 'Ile 0 71 m z 011COLIET AM 1-T-T-1 [1741 Vb 0 LLL! WC%T*O.tx Avg. i-7 Ll Ah UAL LL STCVCXI Awc. -711 1.1-11.l -.i. .. 1-11 a” Avg. LLH Lil-LI-1.1-1- i A �T- 7T-f L L ME 17 U L NPI i 7"71AL K"V*P"'-'CJ\fElVl=NT 117M NIFE-54-C II a r IN 0 CS; 0 11q, A % I V i RICHFUELDs Ml\l .• LI -4 Z „� „.� -- - -- j�- O,F Nl- 40E-- LILL 'PEL UAME1 AM --RIM Avg FTT 77F': Vb 0 LLL! WC%T*O.tx Avg. i-7 Ll Ah UAL LL STCVCXI Awc. -711 1.1-11.l -.i. .. 1-11 a” Avg. LLH Lil-LI-1.1-1- i A �T- 7T-f L L ME 17 U L NPI i 7"71AL K"V*P"'-'CJ\fElVl=NT 117M NIFE-54-C II a r IN 0 CS; 0 11q, A % I V i RICHFUELDs Ml\l .• CITY OF RICHFIELD, MINNESOTA Office of City Manager Council Letter No. 370 Agenda December 12, 1977 The Honorable Mayor and Members of the City Council City of Richfield 3 Gentlemen: Subject: Purchase in Excess of $1,000 Chapter Six, Section 6.05 of the city charter stipulates that the city council must approve the purchase of merchandise, materials, equipment or construction when the amount exceeds $1,000. There is one such item on the council agenda of December 12, 1977. Maintenance of Municipal Well The public works department conducts a routine maintenance program on the deep water well system which provides that each of the city's six wells is completely overhauled every six years. The 1977 water division budget contains approximately $10,000 to in- spect, replace, and repair the gear drive, shaft, and turbine components of well No. 4, which is located just east of 64th Street near Legion Lake. Final costs for the overhaul work cannot be determined until the work is actually started. However, based upon past experience, the staff has pre- pared a list of components that could possibly be in need of repair, and has solicited proposals from three area companies that perform this type of work. The low proposal was received from E.H. Renner and Sons, of Anoka, Minnesota, in the amount of $9,164.16. The second lowest proposal was submitted by Keyes Well Drilling Company, St. Paul, Minnesota, in the amount of $10,421. It is recommended that the city council authorize completion of these repairs by E. H. Renner and Sons, at a cost not to exceed $9,500. Respectfully submitted, Wayne S. Burggraaff City. Manager cc: Finance Director n..L.l;.. 1Ar —r1.a n1rorntnr l� CITY OF RICHFIELD, MINNESOTA Office of City Manager Council Letter No. 369 Agenda December 12, 1977 The Honorable Mayor and Members of the City Council City of Richfield Gentlemen: Subject:. Adjustments in Compensation of Employees in the General Services and the Management Pay Plans for 1978 The purpose of this letter is to recommend 1978 adjustments in the General Services and Managment pay plans which cover employees who are not represented by organized bargaining groups. In addition, this letter recommends 1978 city contribution rates toward health insurance for these same employees. The municipal code requires the city manager to submit a formal recommendation for pay plan and benefit adjustments for the non - organized city employees to the city council. Section 2.33, subdivision 1 of the municipal code states these requirements: "Establishment of Plan. There shall be at all times a pay plan for all classes of positions included in the classification plan. Such plan shall be established and from time to time amended by city council resolution upon receipt of recommendations from the city manager. In making such recommendations, the city manager shall give appropriate consideration to the following factors: (1) Maintenance of equitable relationships between classes, based on their rely tive duties and responsibilities (2) the general level of rates in the appropriate labor markets for comparable work under similar conditions (3) current recruitment and retention experience." In accordance with the municipal code provisions, it is recommended that the General Services and Management pay plans be increased by six percent for 1978. The proposed resolutions to implement this recommendation are attached. The six percent increase has-been applied across the board to each of the salary grades listed within the General Services Pay Plan. The minimum and maximum rates for each grade of the Management Pay Plan have been adjusted upward by six percent with specific increases to be implemented at a later date in accordance with that resolution. Council Letter No. 369 - 2 - December 12, 1977 Several factors were considered in developing this recommendation. From October, 1976 through October, 1977, the Twin Cities consumer price index rose by 7.8 percent, compared to the national average increase of 6.5 percent. The increased cost of living affects another factor used in establishing the recommended adjustment to the General Services and Management pay plans. A survey of other area cities shows that they are all contemplating general increases for non - organized employees of between six and seven percent, with the average increase being 6.5 percent. In order for Richfield to remain competitive in the labor market, a 6.0 percent increase is necessary. A third factor impacting the recommendation for a 6 percent general adjustment in the General Services and Management pay plans is the 1977 -1978 negotiated settlement with Local 49, which provides for a 6 percent increase in 1978. The city is also now conducting negotiations with Local 1215 and the police officers and supervisory bargaining units, and the increased cost of living is expected to be a factor in the economic demands of those groups. General Services Pay Plan The non- organized city employees have established an informal organization called the Non - organized City Employees Group (NORCE) . This group is not presently organized as a bargaining unit under the provisions of state law, and while the city manager and his staff meet periodically with the group to discuss salaries and other matters, no negotiations are conducted with them. The general services pay plan covers approximately thirty -five percent of city employees, including all full time, non - organized employees except those included in the management pay plan. It is recommended that each step in this pay plan be increased by six percent, and that the increase be effective January 1, 1978. The anticipated cost of implementing this recommendation is $51,527. This recommendation is reflected in the resolution marked Exhibit A. Management Pay Plan A 1978 pay plan resolution covering the position classifications assigned to grades G -17 through G -21 in the Management Pay Plan has also been attached (Exhibit B) . It is recommended that the minimum and maximum rates in each range be increased by six percent with specific increases to be implemented at a later date in accordance with the pay plan resolution. Several criteria were examined in developing this recommendation. Consideration was given to survey data of comparable positions in other jurisdictions, the number of employees supervised, size of budget, organizational structure, and overall duties and responsibilities. Council Letter No. 369 - 3 - December 12, 1977 Part Time and Seasonal Pay Plan In recent years, it has been necessary to increase part time pay rates in order to recruit and retain qualified employees and meet the minimum wage require- ment under the Federal Fair Labor Standards Act. In June of 1976, the U.S. Supreme Court in the case of the National League of Cities, et al vs. Usery found the Federal Fair Labor Standards Act unconstitutional in its application to state and local government employees. As a result of this action, state and local government employees are now covered by the Minnesota FLSA which has a lower minimum wage. The current state minimum wage is $2.07 per hour for those employees under eighteen who work twenty or more hours per week. For employees eighteeen and over work- ing twenty or more hours per week, the current state minimum wage is $2.30 per hour. It is recommended that the part time and seasonal pay plan not be increased since salary surveys show that the city will be paying comparable rates for 1978 under the current plan and the city is in compliance with the Minnesota Fair Labor Standards Act. Even though the federal minimum wage is .increasing to $2.65 per hour in January, the increase in the federal minimum wage may possibly have some effect on the state minimum wage, but probably not until September and any legis- latively mandated increases could be effected by range adjustments at that time. In summary, the rates reflected in the current Part Time and Seasonal Pay Plan will allow the city to compete for qualified part time and seasonal employees. A copy of that pay plan resolution (Exhibit C) with 1978 dates is attached for the council's review. Council Salaries On March 14, 1977, the city council adopted an ordinance setting council salaries at $4,221 and the mayor's salary at $5,670 per year. That ordinance requires that these salaries be reviewed in December of each year. A copy of that ordinance is attached for the council's consideration (Exhibit D) . Insurance Premium Contributions At the present time the city contributes to the cost of premiums for two kinds of insuarnce available to city employees. Both forms of insurance are obtained through the Hennepin County Joint Purchasing organization. The first type of insurance is a $5,000 term insurance policy for employees. The city pays the full premium cost of this insurance which is $1.80 per month in 1977 and $1.20 per month in.1978. The second type of insurance is group health coverage of which there are four optional plans available through the Hennepin County Joint Purchasing organ- ization. The 1977 and 1978 monthly premium costs for these plans are as follows: Council Letter No. 369 - 4 - December 12, 1977 Western Life /Blue Cross -Blue Shield 1977 1978 Individual $35.74 $ 44.14 Family $113.64 115.00 Physicians Health Plan Individual $3.5.74 $ 43.77 Family 95.88 113.85 Group Health Individual $35.74 $ 33.75 Family 78.38 93.60 Med Center Health Plan Individual $35.74 $ 44:68 Family 87.86 111.43 The city has contributed a maximum of $52.00 per month for health insurance in 1977 for eligible employees covered by the general services and management pay plans. It is recommended that this amount be increased by $15.00 per month for 1978. A survey of comparable jurisdictions indicates that maximum health insurance premiums in 1978 will be between $65.00 and $80.00 per month with an average of $67.00 per month. A proposed resolution to accomplish this recom- mendation has been prepared and is marked Exhibit E. This resolution also incor- porates the monthly term insurance contribution and establishes an overall con- tribution of $68.20 per month. Exhibit F shows comparative contributions and how they are made for city employee groups in 1977. That same information is shown where available for 1978. The estimated increased cost of these contribution changes including lower term life premium costs is estimated at $13,138 for 1978. Summary of Recommendations 1. That the council adopt the attached resolution establishing the 1978 General Services Pay Plan; 2. That the council adopt the attached resolution establishing the 1978 Management Pay Plan; 3. That the council adopt the attached resolution establishing the 1978 Part Time and Seasonal Pay Plan; 4. That the council review the city council salaries in accordance with the the ordinance requirement; Council Letter No. 369 - 5 December 12, 1977 5. That the council adopt the attached resolution establishing the city's 1978 insurance contribution for general services and management employees; 6. That the council adopt the attached resolution (Exhibit G) trans- ferring funds from the contingency account to the appropriate budget activities. Respectfully submitted S Wayne S. Burggraaff City Manager WSB /jkl cc: Finance Director Personnel Director RESOLUTION NO. RESOLUTION RELATING TO THE 1978 SALARY COMPENSATION PLAN WHEREAS, Section 2.33 of the Ordinance Code of the City of Richfield provides that the assignment of classes to pay grades, the number of steps in each grade, the bi- weekly rates in each grade, the method of normal progression through pay grade and the work week in hours for each class be established by council resolution, and WHEREAS, the City administration has prepared a 1978 pay plan for position classifications in the general services. NOW, THEREFORE, BE IT RESOLVED that the City Council do and hereby does establish for the year 1978 the following pay plan, which is to be effective January 1, 1978, and subject to the provisions of the personnel rules and regulations ordinance. GENERAL SERVICES /BI- WEEKLY RATES GRADE 1 2 3 4 5 6 7 Gl -E 268.23 282.27 296.31 310.35 325.80 G2 -E 282.27 296.31 310.35 325.80 342.66 G3 -E 296.31 310.35 325.80 342.66 359.50 G4 -E 31.0.35 325.80: 342.66 359.50 377.76 G5 -E 325.80 342.66 359.50 377.76 396.02 G6 -E 342.66 359.50 377.76 396.02 415.67 G7 -E 359.50 377.76 396.02 415.67 436.74 G8 -E 377.76 396.02 415.67 436.74 459.20 G9 -E 396.02 415.67 436.74 459.20 481.69 G10 -E 415.67 436.74 459.20 481.69 505.56 Gll -F `436.74 459.20 481.69 505.56 530.84 557.52 G12 -F 459.20 481.69 505.56 530.84 557.52 585.60 G13 -F 481.69 505.56 530.84 557.52 585.60 615.09 G14 -F 505.56 530.84 557.52 585.60 615.09 645.99 G15-.F 530.84 557.52 585.60 615.09 645.99 678.29 G16 -G 557.52 585.60 615.09 645.99 678.29 713.40 749.92 Normal Progression Through Grades Grades G1 Through G10 1 2 3 _4 (Starting) (After 6 mos.) (After 18 mos.) (After 39 mos.) Grades G11 Through G15 5 (After 42.mos.) 1 2 3 4 5 6 (Starting) (After 1 yr.) (After 2 yrs.) (After 3 yrs.) (After 4 yrs.) (After 5 yrs.) Grade G16 1 2 3. 4 5 6 7 (Starting) (After 1 yr) (After 2 yrs) (After 3 yrs) (After 4 yrs) (After 5 yrs)(After 6 yrs .. : w Resolution No. Page 2 Position Classification Grade Hours /Week Clerk I GI 40 Keypunch Operator G2 40 Clerk Typist I G2 40 Clerk Stenographer I G3 40 Clerk II G4 40 Liquor Store Clerk I G4 40 Telephone Operator G4 40 Clerk Typist II G4 40 Keypunch Operator II G5 40 Clerk Stenographer II G5 40 Clerk Typist III G6 40 Cashier G7 40 Accounting Clerk I G7 40 Computer Operator G7 40 Secretary I G7 40 Liquor Store Clerk II G8 40 Engineering Aide I G8 40 Janitor G8 40 Custodian G8 40 Printer G8 40 Accounting Clerk II G9 40 Secretary II G9 40 Administrative Aide G10 40 Community Center Programmer G10. 40 Deputy Clerk Gll 40 Engineering Aide II G11 40 Appraiser I G12 40 Associate Planner G12 40 Programmer Analyst I G13 40 Recreation Supervisor G13 40 Engineering Technician I G13 40 Public Health Environmentalist G14 40 Administrative Analyst G14 40 Naturalist G14 40 Maintenance Superintendent G15 40 Programmer Analyst II G15 40 Assistant Liquor Store Manager G15 40 _Building Inspector G15 40 Electrical Inspector G15 40 Plumbing Inspector G15 40 Engineering Technician II G15 40 Appraiser II G15 40 Ice Arena Maintenance Superintendent G15 40 Accountant G16 40 Chief Water Planter Operator G16 40 Parks Superintendent G16 40 Resolution No. Page 3 'LABOR AND TRADES - BI- WEEKLY RATES Grade 1 2 3 LG 6 596.07 625.88 657.17 Normal Progression Through Grades 1 2 3 (Starting) (After 6 mos.) (After 18 mos.) Grade Assignments Position Classification Grade Hours /Week Street Foreman LT 6 40 Sewer Foreman LT 6 40 Park Foreman LT 6 40 Passed by the City Council of the City of Richfield this 12th day of December, 1977. ATTEST: Thomas J. Moran City Clerk Loren L. Law Mayor 1978 FO(IIVALFNCY TARI_E 0.0600% GENERAL SERVICES GRADE +10ORLY RATE RI- WFEKLY RATE MONTHLY RATE ANNUAL RATE G :S 1 S 3.35 t 3.3529) $ 268.23 581.17 A 6,973.98 GS 2 3.53 1 3.5284) 292.27 611.59 7039.02 GS 3 3.70 ( 3.7039) 296.31 642.01 7,704.06 GS 4 3,88 ( 3.8794) 310.35 672.43 8,069.10 GS 5 4.07 t 4.0725) 325.80 705.90 9,470.80 GS 6 4.2R ( 4.2833) 342.66 742.43 8,909.16 GS' 7 4.49 ( 4.49.38) 359.50 778.92 9,347.00 GS 8 4.72 ( 4.7220) 377.76 - 818.48 9,821.76 GS 9 4.95 ( 4.9503) 396.02 858.04 10,2.96.52 GS 10 5.20 t 5.1959) 415.67 900.62 10,807.42 GS 11 5.46 ( 5.4593) 436.74 946.27 11,355.24 GS 12 5.74 t 5.7400) 459.20 994.93 11,939.20 GS 13 6.02 ( 6.0211) 481.69 1043.66 12,523.94 GS 14 6.32 ( 6.3195) 505.56 1095.38 13,144.56 GS 15 6.64 ( 6.6355) 530.94 1,150.15 13,801.84 GS 16 6.97 ( 6.9690) 557.52 1,2.07.96 14,495.52 GS 7.32 ( 7.3200) 585.60 1,268.80 15,225.60 GS 7.69 ( 7.6886) 615.09 19332.70 15,992.34 GS 8.07 ( 8.0749) 645.99 1,399.65 16,795."14 GS 8.48 ( 8.4786) 678.29 1,469.63 17,635.54 GS 8.92 1 8.9175) 713.40 1,545.70 18,548.40 GS 9.37 ( 9.3740) 749.92 1162.4.'33 19,497.92 RESOLUTION NO. RESOLUTION RELATING TO THE 1978 SALARY COMPENSATION PLAN WHEREAS, Section 2.33 of the Ordinance Code of the City of Richfield provides that the City Council shall adopt by resolution pay plans for city employees„ Such pay plans shall include the assignment of classes to pay grades with minimum-and maximum of progressioq through the pay grade, and WHEREAS, Section 2.33 of the Ordinance Code of the City of Richfield provides that the City Manager shall be responsible for administering the pay plan, and WHEREAS, the City Manager has prepared a 1978 pay plan for certain management positions in the city service. NOW, THEREFORE, BE IT RESOLVED that the City Council do and hereby does establish for the year 1978 the following pay plan to be effective on January 1, 1978 and subject to the provisions contained here. GRADE 17 - $615.27 - $834.47 Street Superintendent Water Superintendent Ice Arena Manager Assistant Park & Recreation Director Administrative Assistant Engineering Associate Assistant Fire Chief Housing and Development Specialist GRADE 1.9 - $716.57 - $1,012.63 Liquor Store Manager City Assessor GRADE 21 - $871.15 - $1,230.08 Public Safety Director Public Works Director GRADE 18 - $648.46 - $918.31 Environmental Health Director Chief Building Inspector Wood Lake Manager Personnel Director Fire Chief GRADE 20 - $788.50 - $1,131.10 Finance Director Parks & Recreation Director Planning Director BE IT FURTHER RESOLVED that the City Council hereby authorizes the City Manager to adjust the individual salaries of those employees assigned to the above pay plan. Such adjustments shall be granted according to the following criteria: 1. Employees shall be eligible for individual adjustments on the effective day of this resolution except for employees appointed after January 1, 1975 who shall be eligible for individual adjustments on their respective anniversary date. RPesoluiion No. Page 2 2. The City Manager may grant individual salary adjustments at times - other than those specified above provided the City Council is advised o.f the adjustments and the reasons therefor at least three weeks prior to the time the adjustments are proposed to be implemented. 3. When granting individual salary adjustments the City Manager shall consider the following factors: a. The level of compensation necessary to attract and retain competent and professionally trained personnel. b. The performance of the individual. C. Comparability of nature of job and salary to sample group management survey. d. The relationship of salary with that of those supervised. e. Recognition of different professional training and experience. f. Degree of responsibility, . number of employees supervised and scope of departmental programs. g. Degree of competence of employee. 4:. The City Manager shall file with the City Council each year, before the end of the year, a report o`f his action in exercise of this authority. POSITIONS EXEMPT BI- WEEKLY RATE Attorney $696:42 Health Officer $ 241..00 Emergency Services'Coordinator X106.00 Passed by the City Council of the City of Richfield this 12th day of December, 1977. Loren L. Law Mayor ATTEST: Thomas J. Moran City Clerk RESOLUTION N0. RESOLUTION RELATING TO THE 1978 SALARY COMPENSATION PLAN WHEREAS, Section 2.33 of the Ordinance Code of the City of Richfield provides that the assignment of classes to pay grades, the number of steps in each grade, the bi- weekly rates in each grade, the method of normal progression through the pay grade and the work week in hours for each class be established by council resolution, and WHEREAS, the city administration has prepared a 1978 pay plan for part time and seasonal position classifications for which there are no essentially similar position classifications in -other regular pay plans. NOW, THEREFORE, BE IT RESOLVED that the City Council do and hereby does establish for the year 1978 the following pay p7_an, which is to.be effective on January 1, 1978, and subject to the provisions of the personnel rules and regulations ordinance. PART - TIME AND SEASONAL EMPLOYEES - HOURLY RATES GRADE 1 2 3 4. 5 1 1.25 1.31 1.38 1.45 1.52 2 1.81 1.90 2.00 2.10 2.21 3 2.20 2.31 2.43 2.55 2.68 4 2.37 2.49 2.61 2.74 2.88 5 2.55 2168 2.81 2.95 3.10 • 6 2.74 2.88 3.02 3.17 3.33 7 2.95 3.10 3.26 3.42 3.59 J 8 3.17 3.33 3.50 3.68 3.86 GRADE ASSIGNMENTS Position Classification Grade Wa e Recreation-Attendant I 1 Recreation Attendant II 2 Information Reception Clerk 3 General Clerical I 3 Recreation Attendant III 3 Recreation Worker I 4 General Clerical II 5 General Services I 5 General Services II 6 Recreation Worker II 6 Recreation Specialist I 7 Community Service Officer 8 ` ` Recreation Specialist II 8 Crime Analyst Intern 8 Computer Operator 8 Recreation Specialist III $4.00 to $12.00 per hour Passed by the City Council of the City of Richfield, Minnesota this 12th day of December, 1977. ATTEST: Thomas J. Moran City Clerk Loren L. Law Mayor CHAPTER XII MISCELLANEOUS ADMINISTRATIVE REGULATIONS; SPECIAL FUNDS PART I. MISCELLANEOUS ADMINISTRATIVE REGULATIONS 12.01. DISPOSITION OF UNCD%Di1ED PROPERTY IN POSSESSION OF THE CITY. Subdivision 1. Purpose and Statutory Authority. This section is enacted for the purpose of providing for the custody and disposal of property coming into the possession of the city in the course of municipal operations and remaining unclaimed by the owner, and is adopted pursuant to the provisions of Minnesota Statutes, Section 471.195. Subd. 2. Method of Disposition. Whenever any property has come into the pos- session of the city, and has remained unclaimed by the owner thereof for a period of six months or more, the city may-dispose of such property by sale to the highest bidder at public auction or sale. Such public auction or sale shall be conducted under the direction of the city manager,-following published notice in the official newspaper at least 10 days in advance of such sale. All unclaimed properties sold at such public auction or sale shall be sold to the highest bidder. Subd. 3. Property Paving Insubstantial Value. Property having no substantial value need not be sold at such public auction or sale but may be discarded or given away, but a list of any such item shall be retained in the files of the city for at least six years after such disposition of such property. Subd. 4. Limitation on Application. The provisions of this section shall not be appl.icable..to automobiles. -. Subd. 5. Items V:'hich May be Destroyed. Items of personal property having nuisance potential, such as firearms, dangerous weapons, liquor and narcotics may be destroyed upon order of the city manager. A list of items so destroyed shall be maintained for a period of at least six years following such destruction. Subd. 6. Disposi..tion of Proceeds. The proceeds of such sale shall be placed in the general fund of the city, subject to the right of the former owner to payment of the sale price from such fund upon application and satisfactory proof of own- ership within six months of the sale. 12.02; COMPENSATION OF .MAYOR AND COU�dCIL 1`fD- BERS. Subdivision 1. Annual Salary. The annual salary of the Mayor is $5,670 and the annual salary for each member of the council is $4,221 to be `effective 30 days after its publication. Salaries of such officers shall be reviewed by December of each year. (Bill 1977 -4) 3/14/77 Subd. 2. Authority for -Enactment. This part is enacted pursuant to the re- quirements of Section 2.07 of the City Charter. ORDINANCE COOT= 3/14/77 280 CITY OF RICHFIELD, MINNESOTA EXHIBIT E RESOLUTION NO. RESOLUTION DESIGNATING CITY'S CONTRIBUTION TOWARD HEALTH AND TERM LIFE INSURANCE PREMIUM WHEREAS, a hospital - medical /surgical group health insurance plan is available from the Hennepin County Cooperative Purchasing Organization for city employees and their families, and WHEREAS, a term life and accidental death and dismemberment insurance plan is available from the Hennepin County Cooperative Purchasing Organiza- tion for city employees, and WHEREAS, the City Council is required to determine by r esolution the city's contribution toward the premium for health insurance. NOW, THEREFORE, BE IT RESOLVED that the city shall contribute a maximum of $67.00 per month toward an employee health insurance premium for all non- unionized employees; in any event said contribution shall not exceed the cost of single coverage for employees selecting that option. The city shall also pay the $1. 20 monthly premium for the term life and accidental death and dismemberment insurance plan for city employees for a total possible maximum insurance premium contribution of $68.20 per month. Such contributions shall be for coverage effective January 1, 1978. BE IT FURTHER RESOLVED that the City Council shall determine the city's contribution toward insurance premiums for all organized employee groups by the adoption oft he appropriate resolutions concerning labor contracts with the respective organized employee groups. Passed by the City Council of the City of Richfield this 12th day of December, 1977. Loren L. Law Mayor ATTEST: Thomas J. Moran City Clerk w \ I §/ =G 5, »G \[ \t G/ � \/ dR w ) . ( e 2\ . m � k to $ a 3 3 3 0 § \ \ \ § § 2 § / Cl) y \ 3 Q g Lo / ) \ e 2 e � § 2 g � § § § \ j / \ / \� A4 \ \\ | | ) m _ 0 q/ / 2 © k §/ | o | | | §2 � | \ | | ! . )Q 2q ® . . ) 2 g g § § \ \ > , , / a 0 2 ` \ 0 co , 4O \ � \ \ o \ / \ % 3 m </> � , , \ ( ®: 3 \ .2 | | | | 2 | \ \ + \ ) . ( 2\ k2 � k ] 1 a /§ \ \ § § 2 § 1 / 3 3 / 3 / \ g g § § § \ j / \ / \� | | ) m $ q/ 2 © k { § e $§ � \k { rZ . . . . �\ k2 � k ] 1 a \ \� . o \ / @ $ j 3 / \ g g § § \ \ j / \ / . . . . \ / \ � k j q/ a © k { § $§ � © { ® . . ) 2 g g § § \ \ / \ / EXHIBIT G RESOLUTION NO. RESOLUTION AUTHORIZING TRANSFER OF APPROPRIATIONS FROM THE 1978 CONTINGENCY ACCOUNT TO VARIOUS DEPARTMENTS WHEREAS, Resolution No. 5770 appropriated funds for each department of the city for the year 1978; and WHEREAS, a contingency appropriation was made in the General Fund for various purposes, including the 1978 salary adjustments and the related fringe benefit contributions; and WHEREAS, Resolution No. established the 1978 pay plans for the. General Services employees; and WHEREAS, Resolution No. determined the city's contribution for term life insurance and for single and dependent health insurance for General Services employees; and WHEREAS, it is hereby determined necessary to adjust the 1978 budget appropriation $51,527 to reflect adjustments. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield that the.sum of $51,527 be transferred from the contingency appropriation of the General Fund to the following departments: DEPARTMENT AMOUNT Executive $ 1,40 Finance $10,338 Planning $ 3,495 Public Safety $ 7,415 Public Works $13,620 Ii ea lth $ 2,942 Parks & Recreation $10,831 Legal $ 1,133 Total Contingency Appropriation $51,527 Decrease. Passed by the City Council of the City of Richfield this 12th day of December, 1977. Loren L. Law ATTEST: Thomas J. Moran City Clerk Mayor CITY OF RICHFIELD, MINNESOTA Office of City Manager The Honorable Mayor and Members of the City Council City of Richfield Gentlemen: !Z Council Letter No. 368 Agenda December 12, 1977 Subject: Authorization to Enter Into Lease Agreement for Data Processing Equipment Late this summer the city received bids for the leasing of data processing equipment. These bids were received following the completion of a needs study and the development of specifications which would result in the submission of the greatest number of competitive bids. On September 26, 1977 the city council concurred with the city manager's recommendation and rejected all bids that had been received inasmuch as none of the bidders completely met all of the specifications. The city council then authorized the city manager to enter into negotiations with Four -Phase Systems Inc. to develop a final agreement for a five year lease of computer equipment. At the September 26, 1977 city council meeting the city council requested information on Four -Phase Systems, Inc. In response to that request, an August, 1977 analysis of Four -Phase Systems, Inc. is attached for your review. Four - Phase Systems, Inc. did submit the most desirable proposal to the city and the lease which has been negotiated incorporates the basic Four -Phase Systems, Inc. proposal. The lease document itself is a detailed and complicated document. It has been closely reviewed by the finance director, our consultant, the city attorney and myself and is available in the city manager's office for review. Briefly, the agreement provides that the city will lease central data processing equipment and, ancillary hardware at a monthly cost of $2,469, compared to our current monthly equipment cost of $2, 536. The agreement provides for a lease /purchase credit to be accumulated during the five -year lease period. Exhibit A, prepared by our consultant, summarizes the factors to be considered in exercising the purchase option. Council Letter No. 368 -3- December 12, 1977 While the monthly-lease cost of the new will be slightly less than existing equipment, the advantages of the new equipment will be very significant. The present system is a card - oriented system capable only of sequential processing. The proposed system will include remote entry terminals providing for batch processing as well as random access of information. This system will provide several major improvements over the current system, including: 1. A computer memory capacity of eight times the current system 2. Central processor speed about 20 times that of the current systems 3. Remote terminal access to the system, expediting file maintenance activities 4. Communication capability for interfacing with other-types of computers and terminals We have spent considerable time developing a schedule to cover conversion from our existing data processing system to the new Four - Phase System. Exhibit B is a summary of the work which will be necessary to convert from the existing system to the new one. You will note that while delivery of the new equipment will not occur until approximately 8 months after the lease is executed, the intervening months will be used advantageously tow ork on the conversion. In addition to the work program shown on Exhibit B, we have also developed estimated operating budgets for the years 1978 -79 which include the additional expense,of converstion and partial participation in Logis. These operating budget estimates together with a comparison of estimated 1977 costs are shown on Exhibit C. In addition to developing the final lease agreement and the anticipated conversion schedule, we have also spent considerable time evaluating our possible participation in the Logis program. We have developed the following conclusions: 1. It would not be beneficial for the city to be fully dependent on the Logis system at the present time, -inasmuch as Logis could not currently meet all of our requirements. 2. In many instances the Logis System is currently more advanced than our existing data processing system, i.e. , Logis provides for random access of information while we do not currently have that capability. In these cases we have concluded that our new equipment will make it possible for us to develop these capabilities and ultimately provide them at a cost similar to or less than, the Logis cost. Therefore, it is advantageous for the city and provides greater flexibility for the city to provide these services with our own leased-. equipment. 3. It is advantageous for the city to make partial use of the Logis system. This partial use is incorporated in our conversion Ccwuncil Letter No 368 -3 Agenda December 12, 1977 scheduling and costs and relates primarily to use of the Logis utility billing system. Use of Logis for this purpose will cut down on the time required for full conversion of our system and will provide our personnel with advance training in use of our new system. In addition Logis has just recently received a grant to develop a new liquor store inventory system. The development of this system will probably take several years but since there is virtually no cost to the city, it is extremely desirable for Richfield as one of the largest retail liquor operations to participate in the development of this new progra m. 4. Logis will also be developing over the next five years and it is con- ceivable that five years from now it could be advantageous for the city to become a full participant in Logis. Therefore, the city should carefully evaluate its future near the end of the five year Four -Phase Systems, Inca lease to determine whether the city should exercise the purchase option; continue leasing or enter into a more complete operating arrangement with Logis. In summary, it appears that approval of the Four -Phase Systems, Inc. five year lease and very limited use of Logis is the best alternative to the city in terms of providing data processing services for the foreseeable future. Therefore, it is recommended that the city council approve a five -year lease with Four -Phase Systems, Inc. and authorize the Mayor and City Manager to execute the contract documents. Respectfully submitted, Wayne S. Burggraaff City Manager WSB /eja cc: Finance Director City Attorney Ex 1 %; b'tt November 23, 1977 Mr. Thomas•J. Moran City of Richfield 6700 Portland Avenue Richfield, Minnesota 55423 Dear Mr. Moran, This letter outlines the purchase options for the Four Phase Systems Computer and the effects of purchasing the computer at the beginning versus purchasing it at the end of the proposed five year lease. The estimates are based on the proposed system configuration which has a monthly lease cost over a five year period of $2469,• a purchase price of $139,000 and a monthly maintenance charge for purchased equipment of $701 per month. The maintenance charge is included in the monthly lease charge. The purchase option arrangement offered by Four Phase Systems has the following basis: 1. Forty percent (40 %) of the rental charges for the first year can be applied to purchase. 2.. Fifty percent (50 %) of the rental charges for the second year can be applied. 3. Sixty percent (60 %) of the rental charges for the remainder of the lease can be applied. ' 4. The total purchase credits cannot exceed eighty percent (80%) of the purchase price. Thus purchase credits would develop as follows: 20 1. First year at 40% $ 14,814.00 2. Second year at 50% 3.. Remaining 3 years @ 60% 53,330.40 . ($17.776.80 per year) TOTAL $ 79,995.60 Subtracting the purchase credits from the purchase price leaves $590,004.40 - - the price at which the system can be purchased at the end of five years. In comparing an initial purchase against the lease, the following approach was used to determine the length of time which the City would have to keep the purchased system before benefiting from the purchase. November 23, 1977 Continued Page 2 1. The cost of maintenance was subtracted from the lease pribe to yield the amount of lease to pro -rate against the purchase (since maintenance will be needed in any event). Thus yielding $2469 less $701 = $1768. 2.• Determining the length of time to reach purchase bene- fits = $139,000 - $1768 = 78.6 months. This is without considering the interest which $139,000 might have yielded over a 78 month period. Considering interest, the total period could extend by an additional 24 months, or more. Thus the payoff period is somewhere between 6 1/2 to 8 1/2 years. Applying a similar approach to the remaining amount at the end of five years results in a payoff period of 33.37 months (2.8 years) without interest or approximately 3.2 years with interest (or a total of 8.2 years). Thus considering interest, there does not appear to be any advantage in purchasing the system at the beginning rather than at the end of five years. Dependent on the interest rate attainable. .Not considering interest, purchase at the beginning would save approximately 15 months of payments at $1768 per month, or $26,520. At best the savings of $26,520 represents the difference in the two approaches, but also the initial purchase would reduce the City's prospects for substituting equipment during the lease and for replacement of the equipment at the end of the lease. Another potential advantage of a purchase at the beginning is that ,'there would be some salvage value at the end of the five year period if the system were to be sold at that point. Sincerely, Dewey M. l.bers 0 Ol1OD K It 11 ti � N N > s 0 Z ;t}H0f M v rs z X sties �N -t Hs 47 -i N a r W r �Dm ra O Z Z 2 -D ar- mz 4. v D m 0 z O m 3 m m N r: . r 1 N N N N N N N N N ►. r+►+ W N .- O O �D O ►+ ►+ r O+ N fi W r r r N r O %D m 0A m 7v' A W N r m m�:-n b•=• -/7.'�� Inc-in dm cDz I LJHrn�� -no,mn HUM vovo ?7mm i� =oz do vmu� < r rte•• -4 -+Hs' Fn 9;4;um vH <Z rDO•• m z m o r r o n o •- i.3oAm H < >M; D O D r 3�vN oo D N� H x O PC �r fttt11 0 N< z m mo.R1� In z" •D-• d"> ({1) Hr N. :K (/) Z-< 0 u Z N 2 Q o N 0 a m o u Z \ -0 Ln M -i .D H (n (n r Z r -i -I <<mDm 0 <-( O D'D 3TNXZm -4 Z1HND -i D33 <O-i•D r N x W m (P '1% n0►+.3 ZI 3 z r-() zO -1 ozzZ �oz0om �r�v -Din(n (n sr<zzi ;u �D ztntnr <�77D zmH. ozxo 0-40 _.N IN ..{ -\iZ >> ;u 06) z6) zD-m1 m3 \ M a-4 ZI 3 N(nl HZyyZ 0z-1z C z z I Z N O { 11 iN N O , Ix 'xx • I ' I i x x 0- -N• ix z ,x; i m i i ► { i ; { 'n: z � •x� 'x1 � t 1 c ,, i •IT , z it i i � I i `•. x 1 m x I i i i D i i I Z I � � 1 . i i a r W r �Dm ra O Z Z 2 -D ar- mz 4. v D m 0 z O m 3 m m N r: . r 1978 JAN. 6523 PAJA PROCESSING COST PROJECT EXHIBIT C ' I N - H O U S E f L O G I S (UTILITY BILLING ONLY) .PERSONNEL 550(8) N.C.R. LOGIS 6 OTHER IBM/DEC.DATA FOUR- OTHER PROCESSING CHARGES NORMAL COMPUTER 6 PHASE CAPITAL CONVERSION CHARGE TO WATER/ MONTH COSTS K.P.RENTAL RENTAL OUTLAY COSTS LIQUOR. SEWER TTO AL 1977 73,779 29,059 366 4613(E) 7392 115.209 1978 JAN. 6523 2456 530 1199 10,708 FEB. 6523 2456 550(8) 545 1199 11,273 MARCH 6523 2536 25(F) 575 1199 10,858 APRIL 6523 2536 25 635 1199 10,918 MAY 6523 2536 25 600 1199 10,883 JUNE 6523 2536 25 550 1199 10,833 JULY 6523 2536 25 650 1199 10,933 AUG. 6523 2536 25 615 1199 10,898 SEPT. 6523 2536 1400(C) 650(G) 575 1199 12,883 OCT. 6523 2216(A) 2469 400(D) 1400(H) 1199 14,207 NOV. 6523 2216 2469 1199 12,407 DEC. 6523 2469 1199 :0,191 78,276 27,096 7407 2350 2200 5275 14,388 136,992 1979 A. 6892 2469 350(I) 1602 11,313 .-3. 6892 2469 1602 10,963 MARCH 6892 2469 1602 10,963 APRIL 6892 2469 1602 10,963 MAY 6892 2469 1602 10,963 JUNE 6892 2469 1602 10,963 JULY 6892 2469 1602 10,963 AUG. 6892 2469 1602 10,963 SEPT. 6892 2469 1602 10,963 OCT. 6892 2469 1602 10,963 NOV. 6892 2469 1602 10,963 DEC. 6892 2469 1602 10,963 82,704 29,628 350 19,224 131,906 ALL TRAINING WILL BE LOCAL WITH NO CHARGES FOR TUITION OR MANUALS. A = REMOVE 2 KEYPUNCHES. B = PURCHASE 2 DISK PACKS AND MAGNETIC TAPES AND ASSESSORIES. C .PURCHASE PUNCHED PAPER TAPE READER. D = PURCHASE PUNCHED PAPER TAPE HANDLING SYSTEM, WINDER, SPLICER, ETC. E = CONSULTANT FEES. F = MILEAGE, PARKING MISC. EXPENSE FOR CONVERSION PROGRAMMING. G = ELECTRICAL AND OTHER PHYSICAL SITE PREPARATIONS FOR FOUR -PHASE COMPUTER. H = FREIGHT CHARGES 360/20 REMOVE AND FOUR -PHASE INSTALL. I = DISK PACK, MAGNETIC TAPES. Researcw i.,enman Brothers BASIC REPORT FOUR -PHASE SYSTEMS, INC. (FPHS - 14 112 Bid) August 10, 1977 1977 Range 17 -13 1976 EPS $1.31 1977 Est. EPS $1.68 1978 Proj. EPS $2.10 EPS figures are fully diluted. George D. Elling Dividend None Price /EPS 1976 11.1 Price /Est. EPS 1977 8.6 Price /Prof. EPS 1978 6.9 Average Daily Trading (July 1977): 8,700 Shares Capitalization at June 30, 1977 $ Mil. Pct. $34.6 48.6% Long -Term Debt Common Stock (4,111,848 shares *) 36. 50.7 0.5 5 0.7 Other Total $n.2 *Assuming full dilution 120 Broadivai- o Ncly York. NelvYork 10005a (212)269_3700 weideemorel ab of intended do not represent thatrit a Sol is accurate or complete. Such information securities opinions expressedlare subject toto chongo w thou notices Lehman Brothers Incorporated, its officers, stockholders,. employees and their families, may have a long or short position in or may at env time purchase or sell the securities mentioned or options relating thereto. QLehman Brothers Incorporated 1977. c 7 CONTENTS SUMMARY AND OPINION INTRODUCTION . . . . 1 COMPANY BACKGROUND 3 INDUSTRY TRENDS . . . . . . . . . . . . . . . . . . . 3 Table 1 - Minicomputer & Terminal Applications HARDWARE PRODUCTS 5 Table 2 - Four -Phase Computer Systems SOFTWARE 8 APPLICATIONS 8 Table 3 . - , , - Systems Applications, by Industry Table 4 - Application Mix Revenue Percentages Table 5 = End -User Sales /Lease Mix DOMESTIC AND FOREIGN MARKETING . . . I1 Table 6 - Foreign & Domestic Revenue RESEARCH AND DEVELOPMENT 12 Table 7 - R &D Expenditures MANAGEMENT . . . . . . . . . . . . . . . . . . . . . 13 MANUFACTURING. . . . . . 15 COMPETITION. . . . . . . . . . . . . . . . . . . . . 15 FINANCIAL. . . . . . . . . . 16 Table 8 - Unaudited Balance Sheet Table 9 - Consolidated Summary of Operations Table 10 - Revenue by Category Table 11 - Income Projections Table 12 - Changes in Financial Position INTERIMRESULTS . . . . . . . . 23 Table 13 - . . . . . . . . . Interim Income Table 14 - Summary of Quarterly Revenue & EPS APPENDIX. . . . . . . . . . . . . . . 4 . . 0 . a 25 SUMMARY AND OPINION In our view, the common shares of Four -Phase Systems, Inc. represent an attractive value for potential capital gains. Based on our earnings projections for 1977 and 1978, these shares are currently selling at 8.6 times our 1977 estimate of $1.68 per share and 6.9 times our preliminary figure of $2.10 for 1978. We are of the opinion that these multiples do not give full recognition to the company's earnings outlook or its leader- ship position in'a'major'- growth market. The shares may remain somewhat volatile, however, as a substantial amount of closely held stock still overhangs the market. '. Four -Phase has established for itself an important niche in the dynamically growing distributed data processing market, and appears to be in a favorable position to contribute to and capitalize on the industry's growth potential over the next few years. While competition has increased over the past year and is expected to accelerate in years to come, we believe Four - Phase's approach and flexibility in the marketplace will continue to support a prominent position for the company. Management appears strong and effective, and it understands the market. We shall closely monitor developments at Four -Phase and keep clients informed. We will also follow competitive developments, particu- larly at IBM. INTRODUCTION Four -Phase has established itself as a recognized leader in the distributed data processing market. Although it is a young company, Four -Phase has shown steady and well planned growth. Of the three large independent suppliers that are closely involved with the distributed data processing - market (Four- Phase, Datapoint and Sycor), Four -Phase is the only company to have vertically integrated from a semiconductor standpoint, and has developed a product line and software assortment that are very impressive. Four -Phase has geared its product development around a concept of clustered display processing systems that enable several independent users to share economically the processing capability of a central processor. This allows various data processing jobs to be performed simultaneously, using a common data base. - 1 - Four -Phase manufactures and markets several video - display oriented-small computer systems. In addition, the company has three families of software products and also offers disc oper- ating systems, utility programs, assembly languages and several other higher level languages that aid in the implementation of custom applications. Present uses for Four - Phase's products include source data entry; remote job entry; local data process- ing and storage; key -to -disc data entry; and on -line inquiry. Since the company's founding, Four -Phase has shipped over 3,750 computer systems that incorporate over 28,000 video - display work stations. Over 600 separate customers utilize Four -Phase products. Historically, the type of user that utilizes a Four -Phase system has chosen to rent equipment rather than to purchase the system outright. While rental business entails significant capital and overhead, it also provides a fairly steady revenue flow, irrespective of the economic climate. Four- Phase has oriented its product line to the end -user. Unlike many minicomputer and intelligent terminal manufacturers, however, Four -Phase has chosen to provide solutions to customers' problems through customized and proprietary hardware and software. At present, approximately 70% of the systems in the user base have been custom designed. Nearly 70% of the company's systems are leased to customers, with approximately 20% of these under long -term (usually 42- month) lease arrangements. Four -Phase designs and manufactures all of its large - scale integrated circuits (LSI) and, aside from certain peripheral devices,-develops all its software and provides systems mainte- nance through its own field service organization. This now numbers 434 people in over 70 locations. Internationally, Four -Phase markets its products both directly and through independent distributors. Its international operations are still in a comparatively formative stage of development and presently account for only approximately 17% of overall revenues; nearly half of the 17% comes from its Canadian- subsidiary. Four -Phase is attempting to stay in the forefront of techno- logical advancements, and continues to place significant emphasis on R &D spending. 2 _ COMPANY BACKGROUND Four - Phase was incorporated in February of 1969. Build= ing on a concept, and aided by an innovative management team, the company has shown excellent growth since its first computer system was shipped in February 1971. At present the company has 1,809 employees, of which 588 are engaged in manufacturing, 434 in field engineering and service, 180 in development and engineering, and 449 in marketing. In addition, 158 people are engaged in general and administrative positions. The initial capital needed to develop the product line and finance the lease base was provided by a group of leading venture capital sources. Capital of $27 million was raised between 1969 and 1973. Of the total capital provided, $14 mil- lion was in the form of convertible subordinated notes, all but $2 million of which were converted to common stock simultaneously with the company's initial public offering in June 1976. The company also realized $8 million in equity proceeds from the initial offering. In addition to this source of capital, Four - Phase has utilized substantial amounts of bank borrowings to finance the growth of its base of lease equipment. The company currently has a $50 million revolving line of credit with several major banks including Bank of America, Morgan Guaranty, Citibank, First National Bank of Chicago, Crocker National,.Manufacturers Hanover and Toronto Dominion Bank. Four - Phase's overall revenue has increased dramatically from $5.2 million in 1972 to $63 million in 1976. We anticipate that revenue will rise to approximately $85 million in 1977 and could exceed the $110 million mark for 1978. INDUSTRY TRENDS Four -Phase Systems has positioned its product line to service the rapidly growing distributed data processing market. The following table provides historical minicomputer and terminal applications, as well as our estimates for 1977 and 1978. - 3 -- TABLE 1 Minicomputer & Terminal Applications ($ Mil.) 1974 Volume 1973 $400 Vol um Pct. Industrial $280 398 Communications 130 18 Research* 85 12 Business 70 10 Education 30 4 Government 40 5 Miscellaneous 85 12 Total $720 1008 *Includes scientific and medical. 1974 Volume Pct. $400 398 190 19 130 13 1.10 ll 40 4 55 5 95 9 $1,020 1008 1975 Volur°e Pct. $460 358 260 20 170 13 180 14 55 4 65 5 110 9 $1,300 100% 1976E Volume Pct. $650 358 350 19 240 13 300 16 70 4 90 5 150 8 $1,850 100% 1977E Volume Pct. $825 348 450 18 300 12 450 19 90 4 110 5 200 8 $2,425 100% As can be seen from this table, the business sector has been the fastest growing segment of the minicomputer market, with 67% growth in 1976 and a 50% growth rate for 1977. It is primarily within this market that the distributed data processing concept is involved. The emerging growth of distributed data processing can be explained by the fact that distributed networks with a cen- tralized CPU can offer numerous advantages over a centralized CPU installation. Many people still ask, "Just what is distri- buted data processing ?" Essentially, distributed processing involves the employment of computerized data processing functions where they can be utilized most effectively, through the imple- mentation and interconnection of computers and terminals that are arranged in networks and customized to the user's needs. Dis- tributed processing involves "off- loading," which is the transfer - 4 - of certain functions to local regional processing sites rather than having all functions done on a centralized mainframe com- puter. The concept behind this approach and management's ra- tionale for it is that distributed processing offers local control and utilization of on -site computers without the loss of centralized coordination and integration. Distributed processing can be approached in many ways. Four- Phase's concept involves the utilization of a cluster approach. By clustered, we mean that a Four -Phase system uti- lizes several terminals that share the intelligence of a central processing unit. In addition to the cluster approach for dis -. tributed data processing, the same hardware with different software can be utilized in key -to -disc and remote job entry systems, which are replacing the old keypunch technology for entering . information in computers. The Four -Phase system is used in conjunction with a large mainframe computer, and eases the load of the centralized site. Hooked up through data transmission lines, a clustered system also allows for overall control of the entire data processing function by the central computer facility. In our opinion, the distri- buted data processing concept remains in its early stages of development, and thereby can be expected to continue to show good growth in excess of the computer market over the next several years. While many companies are placing increased emphasis on this market, we are of the opinion that Four -Phase Systems has an established position and quality reputation in the market which provides an important competitive edge for maintaining a leading role in the industry. HARDWARE PRODUCTS. Four -Phase has concentrated a major portion of its efforts on a family of clustered display processing systems oriented around the company's marketing concept. These systems include the IV /30, IV /40, IV /55, IV /50, IV /70 and the newest and largest system, the IV /90. All these systems utilize in -house semi- conductor technology and incorporate a variety of peripherals, storage, input /output devices and communications equipment. In addition to these systems, Four -Phase has also developed an advanced network processing computer (the NP /80) designed for the management of large data files and for fast communica- tions between multiple processing systems and central computers. The following table provides hardware specifications for Four - Phase's major products. - 5 - 6 - CD CC) tf1 n v N W x p p O o ro 0 1 a N \ v+ rl X o O fn O " M a) 4.1 N y4 co roromcU 14 z o w n.aroa)cO ft .a Grz ro3 ^'1 ro > 41 Ntoll. E 'O N ro � o CN n t% v N fn x N N M o o a! C! 00 t v O O t7l Ol $4 U r` a) C (U -C 04 ro, C E p [•1 a O H ro O V} $4 ! O C: <? µa 01 O !� O f� N N O O O E~ ro >r at � t"1 p tt1 0 O 4.) 1+ W .> O C1 14 1! (I 4J -4 ~' aa�°aci� co •i n yr v to to %0 r- v C14 N 41 >y Ch N N N C v� ro O 0-4--A H • E 3 rq = N N aJ C C C1 f-1 fn O to v N cn x v N o o m .se 1 41 >r U) , X C1 p O Si O O -•t V4 H ?0 .a 4J +� 4J vt, t N :I .t t/1 W o m f- v N Eo O oh Ct 000 :3 O -H c o •.a 4 .A O a fn � �• �uro� P4 I o (n .c r- ;r N fn x N p >. = mo N C0 -tr .•-f O fr s� O O t E! [tt r ul =1 4 U (a v} u of 04 ro. f-f ^ ro u N u ro a1 -.4 4J 04 .54 ] . c� H _ to O O 7 4J -4 'v A t - A 0 a) U +- >a O U co O 4N1 (a � o a ccn v a ai -4 > m� x 7 W b 43 r-1 N 41 54 'CI c a) O .G N = fu U %r 41 O a) ti+ N N }� x sa M c .i ro fh >+ � H . i0 O � Z 4 O z N � 6 - Within the Four -Phase system, the processor provides all control and editing functions of the video display, which effec- tively eliminates the need-for processing capability at each video display unit.. In addition, there is a semiconductor memory for storage of the image seen on the video display screen; this eliminates the need for memories within each video display unit. Four - Phase's systems-can handle processing of complex transactions and several other business applications. In addi- tion, customers are able to choose from several systems ranging in power from the one or two station system IV /30 through the 32 station systems IV /70 and IV /90. Four - Phase's new top of the line IV /90 processor, designed for large- volume distributed processing sites,.provides instruction and execution speed from 2 -8 times faster than the previous IV /70. For customers who have chosen to go with a small system, it is reassuring to know that should their needs become. greater, all Four -Phase hardware and software are designed so that they can easily upgrade their installations and expand as required. The semiconductor memory circuits that are produced by Four -Phase provide a proprietary "window into memory" feature that permits the system to support multiple video displays without interfering with its data handling and processing ac- tivities, thus providing for simultaneous use of a common data base. Additionally, the Four -Phase computers provide 24 bit word length, which enables the systems to handle more tasks related to data and manipulating, and to utilize effectively a larger internal memory. The NP /80 is a complementary processor that utilizes the capabilities of the company's other systems by allowing customers to implement networks of clustered display processing systems and data files. The NP /80 network processor has enhanced the Four -Phase product line, and has provided a significant step toward regional and local data base management. By managing local files, the NP /80 enhances the overall capacity of indivi- dual Four -Phase systems. In addition, the network can include connections with local disc storage files and a remote central computer with its data files. 7 - SOFTWARE Four -Phase has developed numerous user oriented software products which are proprietary for the Four - Phase computer systems. Four -Phase now provides three families of generalized software products, Data IV /70 and COBOL products. The Data IV /70 provides three software products which provide a flexible system for data entry, storage, retrieval, update and communications. Three versions are currently available. All three provide enhanced "fill in the blanks" data entry capabilities with editing and validation features, as well as noncurrent batch communications with a host computer. NTP (network transaction processing) is a family of six packages that provides users with the ability to utilize local COBOL programs and to perform interactive and batch communica- tions tasks in conjunction with the remote CPU. Recently Four -Phase introduced several new software develop- ments including "Vision," a multifunction transaction processing package, and " ForeWord," a 16- station word processing system that handles both general correspondence and editing of long documents. Vision appears to be an impressive offering that combines in one easy -to -use system source data entry, on -line inquiry and retrieval, local data management, report and document generation, and batch communications. Vision will be provided free.. It be- comes available in September 1977. Foreword is a shared -logic word processing system that employs the standard Four -Phase processor and supports up to four.disc drives. While the system provides considerable capa- bilities, it is in a very competitive market and will likely be sold primarily as -an adjunct to another system. Delivery is also expected to begin in September, with rentals for a four- station system beginning at $315 per station on a 42 -month lease. APPLICATIONS Four -Phase has shipped more than 3,750 computer systems, with well over 28,000 video display stations at the installations of more than 600 customers. No one customer accounts for more than 2% of sales, and the vast majority of Four-Phase's customers are well established Fortune 500 companies. The following table provides the percentage of applications provided by different industry orientations. 8 - TABLE 3 FOUR -PHASE SYSTEMS, INC. Systems Applications, by Industry Category Manufacturing Medical Service Federal Government Financial Insurance Distribution Transportation State & Local Government Communications Other 1972 1973 1974 1975 1976 13% 13$. 17% 18% 18% 4 3 7 12 16 9 11 11 11 13 1 9 9 9 12 23 19 15 13 11 8 8 8 10 8 9 8 7 8 7 8 8 7 5 5 1 8 8 7 4 21 10 6 2 3 3 3 5 5 3 100% 100a 100% 100% 100% The Appendix to this report provides a listing of Four - Phase's major customers classified in terms of industry orien- tation. Four -Phase provides equipment on either an- outright sales basis, on one -year operating leases, or on long -term leases of 36 or 42 months. The current makeup of revenue by.category of sales is provided in the following table. TABLE 4 FOUR -PHASE SYSTEMS, INC. Application Mix Revenue Percentages 1972 1973 1974 1975 1976 System Type Custom 56% 59% 63% 71% 71% Data Entry 27 31 31 24 24 On -Line 27 10 6 5 5 100% 100% 100% 100% 100% 9 To date, approximately 85% of all leased equipment from Four - Phase has been retained by customers beyond the initial lease term. Four -Phase operates refurbishment centers where returned equipment is restored and reconfigured to fill new customer orders. Historically this has tended to.protect against obso- lescence. While no guarantee can be made that new technologies may not cause Four - Phase's equipment.to become obsolete in years to come, this does not appear to be a problem at the present time since Four - Phase's systems appear to be at the leading edge of the industry. Customer applications generally fit into three subgroups; custom, custom, data entry and on -line. A custom installation requires significant investment by the user in software development; when utilized with generalized software from Four - Phase, this provides .a highly sophisticated system. The data entry product is utilized for key to disc or tape application, while the on- line system represents a product that simulates IBM's 2260, 3270 and 3790 terminals. At present we estimate that custom installations comprise better than 70% of installed Four- Phase systems, while nearly 24% of clients utilize the system for data entry and approximately 5% for on -line systems. Historical end -user sales /lease mix has been as follows: TABLE 5 FOUR -PHASE SYSTEMS, INC. End -User Sales /Lease Mix 1972 1973 1974 1975 1976 Customer Base One -year lease 44% 50% 50% 41% 34% Long -term lease 36 40 42 46 42 Customer owned 20 10 8 13 24 100% IM 100% 130% 100% We consider Four -Phase to be a leader in the clustered distributed processing area. Contacts with end -users indicate that Four - -Phase products are highly advanced, and for the most part operate very efficiently. Overall system support appears to be good, and most users indicate that they are well pleased. This has translated into many follow -on orders. - 10 - DOMESTIC AND FOREIGN MARKETING Four -Phase markets its products around the world. Domes- tically the company has a sales force of approximately 320 operating out of 34 field sales offices 'throughout the United States. The sales offices are staffed by 105 marketing repre- sentatives and managers who are generally responsible for leases and sales. More than 130 systems engineers and managers provide training, installation and programming assistance to the company's customers, while the equipment is maintained by 434 field maintenance engineers. Internationally, the company markets its equipment through independent distributors and through a direct sales force. The company's largest subsidiary, Four -Phase Systems Ltd. in Canada, operates four sales offices and has a staff of 44 marketing and field service personnel. In addition to this subsidiary, the company also operates through a wholly owned subsidiary-in Brazil which is located in two offices and staffed by 25 marketing and field service personnel. Distributorship relationships have been set up to cover Japan (Mitsui) and most Western European coun- tries (Philips). Recently a direct sales marketing and service force has been established in a new branch in the United Kingdom. The company's foreign and domestic revenues are split as follows: TABLE 6 FOUR -PHASE SYSTEMS, INC. Foreign and Domestic Revenue (000) As can be seen from this table, Four - Phase's foreign activities have been limited somewhat, with very little growth achieved between 1974 -76. While most of the foreign business still comes from Philips NV, management plans to deepen its focus and commitment to foreign opportunities in the future, although - 11 - Domestic Pct. Foreign Pct. Total 1972 $5,113 97.7% $ 122 2.3% $5,235 1973 7,581 67.9 3,584 32.1 11,165 1974 27,588 75.7 8,878 24.3 36,466 1975 41,093 81.9 9,057 18.1 50,150 1976 52,579 83.2 10,639 16.8 63,218 As can be seen from this table, Four - Phase's foreign activities have been limited somewhat, with very little growth achieved between 1974 -76. While most of the foreign business still comes from Philips NV, management plans to deepen its focus and commitment to foreign opportunities in the future, although - 11 - any increased participation will be approached with the aim of limiting the company's exposure. Management is still not con- vinced that making a major commitment overseas is advisable. RESEARCH AND DEVELOPMENT Since its founding, the company has sought to stay in the forefront of technological innovations and has developed its own proprietory LSI semiconductors for use in memory and processing units. In addition, the company has developed hardware subsets to control peripheral devices and communications between systems, and has developed -data entry and network processing software. The following table provides a record of research and develop- ment expenditures relative to overall sales for the past few years, along with our projections for 1977 and 1978. TABLE 7 FOUR PHASE SYSTEMS, INC. R &D Expenditures Nearly two- thirds of the company's R &D expenditures (exclud- ing LSI) are devoted to software development. This orientation is due to the increasing importance of overall software develop- ment to system needs. There were 142 employees engaged in development and engineering as of the end of 1976. Of this number, 56 were•engaged in LSI and hardware development, 62 in software programming, and 24 in support capacities. - 12 - Pct. of R &D (000) Sales 1972 $ 897 17.1% 1973 1,191 10.7 1974 1,684 4.6 1975 21706 5.4 1976 41137 6.5 1977E 5,950 7.0 1978P 81000 7.3 Nearly two- thirds of the company's R &D expenditures (exclud- ing LSI) are devoted to software development. This orientation is due to the increasing importance of overall software develop- ment to system needs. There were 142 employees engaged in development and engineering as of the end of 1976. Of this number, 56 were•engaged in LSI and hardware development, 62 in software programming, and 24 in support capacities. - 12 - In our opinion, Four -Phase will likely continue to develop enhanced systems in the distributed data processing area. In addition to this market, we expect that Four -Phase will expand and diversify its operations without straying too far from its historic expertise. Recent instances of diversification include the ForeWord word processing software system. We are in the process of evaluating this product, and will keep clients appraised of developments. MANAGEMENT Four- Phase's management appears well seasoned and has proven to be resourceful, having achieved high standards in research, production and marketing. The following list high- lights the background of the company's senior management. Name Lee L. Boysel John M. Clark, Jr. Jack L. Faith Ronald D. Garrison John J. LaPorta Glen McLaughlin F. Anthony Yates, Jr. Carter C. McCorkle Ronald C. Davies Position Chairman of the and President Vice President - Vice President - Vice President - Vice President - Vice President - Vice President - Secretary Controller Board of Directors Marketing Research & Development Field Engineering Operations Finance and Treasurer Systems Development Mr. Boysel (age 38) was associated with Fairchild Semi- conductor, a division of Fairchild Camera and Instrument Corpo- ration, a manufacturer of industrial electronic products, as manager of the MOSJLSI Engineering Department from 1966 to 1968, when he founded Four- Phase. Prior to his association with Fairchild, Mr. Boysel was with IBM from 1965 to 1966. He has been an officer of Four -Phase since February 1969 and a director since September 1969. Mr. Clark (48) was associated with DPF Incorporated, a computer leasing company, as senior vice president from 1969 to 1970 before joining the company. From 1956 to 1969 Mr. Clark was associated with IBM. His last position with IBM was as director of marketing for its Service Bureau Corporation. He has been an officer of Four -Phase since June 1971. - 13 - Mr. Faith (41) was associated with Fairchild Semiconductor as a project engineer from 1967 to 196$ before joining the company as a founder. He has been an officer of Four -Phase since June 1971, and is responsible for advanced LSI development. Mr. Garrison (38) was associated with Telex Corporation, a computer peripheral and electronic equipment manufacturer, as vice president -field engineering services from 1972 to 1974 before joining the company. Prior to Telex he was with IBM in various field engineering capacities from 1961 to 1970, at which time he left IBM to join the founding group of Comma Corporation, a computer maintenance service company, as vice president - western region. He has been an officer of Four -Phase since September 1974. Mr. LaPorta (41) was associated with the Systems Technology division of Fairchild Camera and Instrument Corporation as plant manager from 1965 to 1969 before joining the company. He has been an officer of Four -Phase since June 1971. Mr. McLaughlin (42) was associated with Memorex Corporation, a computer peripheral and information media manufacturer, as director of finance and administration- European operations from 1970 to 1971 before joining the company. Prior to 1970 Mr. McLaughlin was associated with McFarlane's Candies, a manufac- turer and retailer of confectionery products, as executive vice president and director and with Foremost - McKesson, Inc., a diversified manufacturer and distributor of consumer products, as assistant treasurer. He has been an officer of Four -Phase since January 1972. Mr. Yates (38) has been with Four -Phase since 1971 in various marketing positions including eastern regional manager and director of systems marketing. He has been an officer of Four -Phase since September 1976. Mr. McCorkle (41) was associated with L.B. Nelson Corpora- tion, a national real estate developer, as director of corporate accounting from 1971 to 1972 before joining the company in January 1973. From 1962 to 1971 Mr. McCorkle was with Arthur Andersen & Co., an independent public accounting firm, his last position being manager - commercial audit. He has been an officer of Four -Phase since September 1975. Mr. Davies (35) has been with Four -Phase since 1969 in various financial and accounting positions. Prior to 1969, he was associated with Redlake Laboratories, Inc., a photo- .instru- mentation manufacturer, as controller. He has been an officer of Four -Phase since September 1976. - 14 - As can be seen from this listing, Mr. Boysel, Mr. Faith and Mr. LaPorta• come from the semiconductor industry and bring with them the technical background that has led to the company's proprietary product line. The other members of senior management come from various backgrounds, although. all have had experience in the office equipment industry.' MANUFACTURING Four - Phase's primary manufacturing and administrative facilities are located in Cupertino, California. The company recently moved into a new complex of three adjoining buildings containing over 400,000 square feet. As mentioned earlier, Four -Phase is highly integrated and manufactures a large percen- tage of its own computer systems. Purchases from other companies include electromechanical peripheral devices, disc drives, tape transports, card readers and printers. Most products are provided by single sources, although second sources are available in many instances. COMPETITION From a competitive standpoint, Four -Phase operates in several specific markets. Overall, the company has sought to sell to the market for custom distributed processing systems. This market is one in which users seek out systems that provide capabilities that can provide them with solutions to numerous problems. Four- Phase's current product line appears impressive in this market, and the company is well positioned to compete successfully for market share. Other companies competing for this market include Digital Equipment, Data General, Datapoint, Hewlett - Packard, Sycor and several mainframe manufacturers, particularly ISM, whose products compete in almost all areas of the computer industry. The most important factor concerning competition is that functions appear to be merging, and the computer user is looking for versatile systems. At present Four -Phase 'is a leader in this area, and its newly announced Vision software product is clearly at the leading edge of software products in this market- place. - 15 - In addition to competing for a segment of the distributed data processing market along with independents such as Datapoint and Sycor, Four -Phase competes specifically for several indivi- dual markets. In practically all markets, Four -Phase meets with competition from IBM products. The most direct competition with IBM is in the on -line market, where Four - Phase's products simulate the functions of the IBM 3270 and 3790 terminals. How- ever, this represents only 5% of Four- Phase's business. IBM has recently lowered prices for these products, and has added enhance- ments to the 3790 product. Raytheon, Sanders, Courier and other 3270 PCMs provide competition in this area. We consider the long -term opportunity for Four -Phase in this market to be limited. The second area in which Four -Phase has a specific product is the classic key -to- disc /RJE market. Four - Phase's data entry business now represents approximately 24% of its overall sales. The company competes with other manufacturers such as CMC- Pertec, Inforex, Mohawk Data, Data 100, Entrex and others. Here too, this business in itself is not considered dynamic. ' However, as an adjunct to the other capabilities of Four - Phase's systems, this is judged to be an attractive offering. The recently announced word processing package also provides Four- Phase with a product in this marketplace. FINANCIAL Four -Phase is in a relatively strong financial position, although- continued rapid growth may necessitate the raising of additional long -term capital within the coming year or two. Generally, Four -Phase follows conservative accounting practices. The company has always expensed research and development expen- ditures, and does not capitalize lease acquisition costs. We have some reservations regarding its treatment of depreciation on rental equipment. Four -Phase utilizes- five -year straight line depreciation in contrast with companies such as Datapoint and Sycor, which utilize accelerated methods. Four- -Phase justifies this accounting treatment on the basis that nearly all of its rental equipment has been continually utilized. However, in a constantly changing market with innovations and state of the art technology, we are of the opinion that the financial community's concern about competitive developments and premature obsolesence is a potential problem. We believe that an accelerated account- ing. treatment of depreciation might be preferable in the future. The company's balance sheet is quite strong, as the follow- ing table indicates. ` - 16 - TABLE 8 FOUR -PHASE SYSTEMS, INC. Unaudited Balance Sheet (000) Assets: Cash Accounts Receivable, Net Net Investment in Lease Contracts Notes Receivable, Current Inventories Prepaid Expenses and Other Total Current Assets Net Investment in.Lease Contracts Notes Receivable Equipment for Lease, Net Property and Equipment, Net Other Assets Total Assets June 30 1977 1976 $ 2,758 9,555 Current 8,144 1,787 13,726 430 36,400 14,261 179 26,318 5,986 156 $83,300 Liabilities and Stockholders' Investment: Notes Payable to Banks, Current Accounts Payable Other Accrued Expenses Total Current Liabilities Notes Payable to Banks Capital Lease Obligations 9% Convertible Subordinated Notes Stockholders' Investment Total Liabilities and Stockholders' Investment $ 1,390 6,452 4,276 12,118 32,600 487 2,040 36,055 $83,300 $ 1,126 6,207 4,287 1,786 7,701 335 21,442 9,067 1,709 21,583 3,884 300 $57,985 $ 5,349 2,981 3,169 11,499 17,907 3,490 25,089 $57,985 As of the end of 1976, the company's current ratio stood at 3.5:1; and at the end of the recently completed second quarter of 1977, the ratio stood at 3.0:1, a more than adequate figure. Cash and equivalents were $2.8 million as of the end of the second quarter, and long -term debt stood at $34.6 million. The company has a $50 million revolving credit arrangement with several large banks, of which $32..6 million is currently being utilized. The table on page 18 provides a summary of the company's relevant income statement figures over the past five years. - 17 - D W a E-+ U z F-1 W H W x a a 0 0 w O a 0 44 0 ttf E: 4J 0 In 1~ O U tD O O co Ct.(� tD O b O tD t•1 M M T` N - ri . N O M tD trl O tD CD CA T` YT N M Ol N to Cl 0 a�i M O sT .-t N 0 to at Ol to +4 O a a) v � .0 � f fA H a) i C 'Q 40 C to 'O 7 d X fa b U 0t Ln N m ito to co V} .0 X U - to tj N a tf) H SJ E+ I) a O � > a) A V} 0 V> CO. fh N O tD Ln tD V' 01 O CO O r to tD Qt %D tft tD Ot !°' -)a�)� N 'V' O N W fT -rt N Go 1- tD v u1 co . N co OO tD to O t!l tp OO r1 O m n M tD 1-4 rt N a) U a) C7 C u ^ ^ -i C N C. a) z 0[ c; M tD •T N t) O , r N O O O rM i r4 O cow f31a m 8 kW to m W �! _En NiJ4CO U V 4J O 0 O w 0 to '� W 010 O C to t? C X —f U t0 X" U 1s 'd U .7 u C .7 't a) a) E: p E O O) W 'v C 'o $4 [ w 'v C � �s C: .•+ to H — 0 0 —� u 0 C) 0 a. t u H ri 0 O C to a) O $4 M-4 01 0 H W O O +t n +J 0 a) p to a) rO O c w C u 4 N y. V! V} () s4 1+ a) 4) N tT t� t0 C% tD "T to p .-1 -sT Ln N O N N O N t� 1l1 to C)+J.G M t0 O t0 OU'Ux U W W W 01 sT T t` f� M C' M U1 co O r '!t CU to C w H W M tf1 C% O O- O N NL� W N IT to V H N to 1-4 sT v •„{ � "` O O O O O � M M O Q1 C% tb VY N M 1`- N t� tD N �- 01 N N tD O N O Ot Clt Q\ ^ 7 t> _ tD � tT H O 00 -4 C' Q> ! sT V' Co M � co .-t . . m 1 rn v •Q ! v N ul n N co tD ^ ^ ^ `GT ^ r M M C p00 1 ^ r O tp tT N r-i C% q v - 0 1 o t` o b - CA l� 1-4 v v y - v y VY N v '° a to d ,� > m > !, aci 0 0 a�i a 0 to at Ol to +4 a a) v � .0 � f fA a) i C 'Q 40 C to 'O 7 d X fa b U 0t H N m ito to co .0 X U C to tj a tf) H SJ E+ I) a O � > a) 0 .4 'o u •fit .-. t (a &J� u -v !°' -)a�)� SOa ' >4 U••C�a tun W a) r_aai 0. 41 d a0i iJ w U U 4 W d a! •.a W 0 rt N a) U a) C7 C u ^ ^ 1+ 1+ 'a U v C N C. a) z 0[ ° >'` t) O , E O �, O R. Ua) yf O cow E f31a m 8 kW MX0 N C O m W 41- _En NiJ4CO U V 4J O 0 O w 0 to '� W 010 O C to t? C X —f U X" U 1s 'd U .7 u C .7 't a) a) E: p E O O) W 'v C 'o $4 [ w 'v C � �s C: .•+ to H — 0 0 —� u 0 C) 0 a. t u H ri 0 O C to a) O $4 M-4 01 0 H W O O +t n +J 0 a) p to a) rO O c w C u 4 N aJ u m d) C to miJ () s4 1+ a) 4) E 41 °.-t E 0 N H v H O d •a w E= w ,J z O E •r w .0 a! z 4) -q > to a) O C)+J.G Ox> U W O O�,t, UU41 w 4J L vLtA OU'Ux U W W W a E O• -fa)X U W-4 Z V C. C tJ o H o C w H W C X H a) to a) C O- W W C NL� W z LL z H V H N 18 As can be seen from this table, revenue has shown sig- nificant improvement in each year since 1972, with a compound annual growth rate of better than 85% in the five -year period. In 1976 consolidated revenue rose 26% to $63.2 million as sales to end -users rose by 80 %, and long -term leases (which were given sales accounting treatment) increased by 46 %. Lease and service revenue also advanced significantly in 1976, rising 30% to $25.2 million from the $19.4 million recorded in 1975. Sales to distributors and OEMs rose modestly to $6.5 million, while independent leasing company sales declined significantly to the $6.5 million area from the $9.3 million reported in 1975. Table 10 provides a breakdown of sales by different groups. TABLE 10 FOUR -PHASE SYSTEMS, INC. Revenue by Category Mi .) Four -Phase was able to derive economies of scale in 1976, and the efficiency of its sales force also improved. This resulted in increased gross margins, which rose to 47% versus the 43% reported in 1975. Of the other relevant income statement categories, general and administrative expenses were only slight- ly above previous year levels, while marketing outlays increased 30 %, in line with management's projections. Due primarily to the June 1976 public offering of common stock, the company's interest expense declined 23% for the full year. Pretax income increased significantly to $8.1 million, relative to the $2.8 million reported in 1975. This marked increase resulted in a pretax margin improvement to near the 13% level,.•versus the 6% of 1975. Aftertax income also rose dramatically to $4.4 million, versus } 19 - 1975 1976 Lease and Service $19.4 38.6% $25.2 39.9% Sales to End -Users 7.0 14.0 12.7 20.1 Leasing Companies 9.3 18.5 6.6 10.4 Long -Term Leases 8.3 16.6 12.1 19.2 OEMs 6.2 12.3 6.5 10.4 $50.2 100.0% $63.2 100.0% Four -Phase was able to derive economies of scale in 1976, and the efficiency of its sales force also improved. This resulted in increased gross margins, which rose to 47% versus the 43% reported in 1975. Of the other relevant income statement categories, general and administrative expenses were only slight- ly above previous year levels, while marketing outlays increased 30 %, in line with management's projections. Due primarily to the June 1976 public offering of common stock, the company's interest expense declined 23% for the full year. Pretax income increased significantly to $8.1 million, relative to the $2.8 million reported in 1975. This marked increase resulted in a pretax margin improvement to near the 13% level,.•versus the 6% of 1975. Aftertax income also rose dramatically to $4.4 million, versus } 19 - the $1.6 million of 1975 (a 176% increase). Reflecting extra- ordinary credits'due to operating loss.carry- forwards of prior years, the company was able to show even higher overall earnings. Primary earnings per share in 1976 rose 44% to $1.67 from the $1.16 of 1975. On a fully diluted earnings basis, EPS rose 77% to $1.31 from the $0.74 reported in 1975. The following table gives our projections for results in 1977 and 1978. TABLE 11 FOUR -PHASE SYSTEMS, INC. Income Statement Projections ( M1 .) - 20 - Increase Increase 1976 1977E 1977/76 1978P 1978/77 Sales $ 38.0 $ 50.1 31.88 $ 63.8 27.3% Lease Income 25.2 34.9 38.4 46.2 32.4 Total Revenue 63.2 85.0 34.5 110.0 29.4 Costs and Expenses 52.8 71.0 34.4 93.6 31.8 Income from Operations 10.4 13.1 26.0 16.4 25.2 Operating Margin 16.5% 15.4% - 14.98 - Interest Expense $ 3.6 $ 3.8 - $ 5.9 - Interest- Income 1.4 1.7 - 4.0 - Other (0.1) - - Pretax Income 8.1 11.0 35.8 14.5 31.8 Pretax Margin 12.8% 13.0% - 13.2% - Taxes $ 3.7 $ 4.1 10.8 $ 5.4 31.7 Tax Rate 45.7% 37.3% - 37.0% - Net Before Extraordinary Items $ 4.4 $ 6.9 56.8 $ 9.1 31.9 Fully Diluted EPS $ 1.31 $ 1.68 28.2 $ 2.10 25.0 Shares Outstanding (fully diluted) 3.6 4.1 13.9 4.3 4.9 - 20 - We anticipate that overall revenue will show nearly 35% growth in 1977 to $85 million, versus the $63.2 million recorded in 1976. Lease revenue is expected to show slightly better growth than outright sales, as emphasis continues to be placed on this portion of the marketplace. Due to the changing product mix, we anticipate that operating margins will decline slightly in 1977 to 15.4% from the 16.5% recorded in 1976. Nonetheless, overall pretax margins will show slight improvement this year. The company's tax rate is expected to decline to approximately 37 %, versus the 45.7% rate of 1976. Thus, despite an overall increase to 4.1 million shares frorq the 3.6 million shares of 1976, we predict that earnings will show a gain to at least $1.68, 28% above the $1.31 reported in 1976. For 1978 we project revenue growth to the $110 million level, an increase of nearly 30% from this year's estimate. We look for operating profit to increase by approximately 25% in 1978, while pretax income could show a gain of 32% over results of 1977. We antici- pate a 37% tax rate for 1978, and our preliminary earnings projection is $2.10 per share. The table on page 22 highlights our cash flow estimates for 1977, as well as comparisons with 1976 and 1975. As can be seen from an analysis of Four - Phase's consolidated statement of changes in financial position, the company continues to have-need for additional capital to help fund future growth. In 1976, the company's common stock offering netted nearly $8 million while conversion of its 9% convertible subordinated note also funds by over $11 million. Aside from these factors, the total net funds provided from operations was only $1.5 million. Total increases in working capital approximated $11.5 million last year. For 1977, we expect net funds provided from operations to be at a deficit of nearly $5.2 million; for 1978, this deficit could approach $8.4 million. These figures are due to the significant amount of capital necessary to fund a lease base. In 1977, we project uses of funds necessary for equipment for lease will approach $14 million, while it is possible that the figure will reach $19 million in 1978. The company currently has a $50 million revolving credit line, of which $32.5 million is now being used. Terms of the agreement are three quarters of a percent over the prime rate which is considered quite favorable. We anticipate that the company will seek additional sources of capital, and while the company will initially seek bank loans, we would not be surprised to see an equity offering at more favor- able stock price levels. - 21 - N r-i W a H C O .,..1 aJ •r1 to 0 a ri • w U z H .,..1 . N W C H rt; to r-1 >4 U en 44 W o .0 x C a � 4J O 0 C74 dJ U) ro 4i rig O C 0 U w C) C3 o o C) 00000 M 0 N Co C) t!1 In 00 t- 00 00 CD 0 0 00000 0 -W ri ko CO 14, O1 ON r-1 ^ r` N r-i t0 1 O1 I ON U1 o N %.O M d• I I i l t i l 1 1 I r-i O O N N N t- ON 4tT r-i CO . 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M t!2• ru 54 4,• •r4 3 ra >, �t a 4J O �4 s+ 44 U a 1 N • O a 34 •ri to >4 a S4 tT w 4J 4J aJ CO W S4 ro N •r1 (. ?C RS aS U > UI ca w a 44 X: o •r1 a a 0 U Ul •rt 10 4J S4 a UI 4J U O 0 4J S4 S-+ C O (d <. z z a 000 C a to �, z 44 W -,i r1 I~ 4J a tr • La 4a 0 4J z a o .,1 � to >1 U) S4 dJ ri C N H 41 41 U cn C�4 rC a a ai -Ca a E o(a Z z 41 U) 4J Z .IJ 0 r • .,.j •rq a W •r1 c as4 a C $4 C rn> 4-)rO'0 • �Fj w -H C: As 44 •1 o aiE n >ai rn 4J i7" RC a rc1 N at ro $4 U .Q •ri -r-i C ' (W A a s~ cn ctl •ri a c a aG � Q }-j •ri tr p ra } 1 •ri a s :3 r0 -,i 44 dP U to a 3 C A a 44 C 44 u ri a V •ri 4-1 M O .14 to O •i rO ar o (a o ro .0 w > TO O 4J 44 U $4 x C O 4J >, US w a m Sd - o a " W 0 044 S4 Sa O CCCC �40 rO:J >0 '0In w rOx0 4J0 0 0 wEooao (aU Cto•r1"C4J Q, .r1U 4a CU) W 0rgr.1:~r-i Cp O ra) a taav? >0000 C 44 S-+ 4.) .IJ Qj 4J r-i =j W > U dJ N 4) N O 4J 0 r-+ ra O E C o 44 <a CO •r-I fU ri rO o C a :~ >, w N ra S•+ to —4 a 4J a •r, r-i S4 r4 •ri •ri :3 N 0 P W a JJ R' .") C L4 U) U) •r4 14 aJ t3 a 41) aUUV••-14-) O O Ep � CS-1•ramS4O.,4JH a U E a a W •+J O ca r-1 N W w a W r♦ w U1 O a U •rq a E 0 1 r-i t31 S•+ O u p W 4J w ca to ra a -ra 04 a to rO E > �4 :3 4.1 a .tJ 0)(d C :I U 04 04 a O A .!J 4J a C1-- :5 OX: 11 4J C E C a a' a ra -Q C aJ m OCaa :3 x0 NaaJ01W4-J0 a :�00xUpa:j00 .c m ClQ stn w Da,0wa40H z a, UUW4wtztnaH U - 22 - INTERIM RESULTS Four -Phase reported good sales and earnings gains in its '1977 second quarter. For the three -month period, total revenue rose 40% to the $21 million level, relative to the $15 million reported in 1976. Earnings per share rose to $0.42, up 20% from the $0.35 reported in 1976. This reflects the 24% increase in shares outstanding this year in comparison to 1976. Despite the increase in overall revenue, quarterly costs and expenses con- tinued to show increases and operating margins proved somewhat lower than levels reported in the 1976 quarter. While operating income rose only 18% to $3.1 million versus the $2.6 million of 1976, pretax income rose 48% to $2.7 million from the $1.8 mil- lion of last year. This improvement largely reflected the decrease in interest expense for the quarter relative to the amounts paid in 1976. Taxes were accrued at 37 %, relative to the 45% withheld in 1976. This reduction is the result of increased investment tax credits, DISC benefits and reduced losses in Brazilian operations. TABLE 13 FOUR -PHASE SYSTEMS, INC. Interim Income Statement (000)--- Second Quarter 1976 1977 Change Sales Lease Income $ 9,186 $12,598 37% Total Revenue 5,851 15,037 8,416 $21,014 44 40 Costs & Expenses $12,431 $17,942 44 Income from Operations 2,606 3,072 18 Operating Margin 17.3% 14.6% Interest Expense $1,032 $793 (23) Interest Income• 311 497 60 Other 45 48 Pretax Income 1,840 2,728 48 Pretax Margin 12.2% 13.0% Taxes Tax Rate $828 $1,010 22 Net Income Before Ext. Items 45% $1,012 37% $1,718 - 70 Extraordinary Items 717 792 10 Total 1,729 2,510 45 Fully Diluted EPS. $0.35 $0.42 20 Shares Outstanding 3 322 4,112 24% (Fully diluted) - 23 - We anticipate that the company will continue to show favor- able sales and earnings gains for the remainder of 1977 and into 1978. The following table highlights_our quarterly projections. 1975 1976 1977 1978E Summary of TABLE 14 FOUR - PHASE SYSTEMS, INC. arterly Revenue and Earnings Per Share ($ Mil.) 1" Rev. EPS $11.3 $0.17 14.7 0.34 18.8 0.40 25.0 0.50 TABLE 14 FOUR - PHASE SYSTEMS, INC. arterly Revenue and Earnings Per Share ($ Mil.) 4Q Rev. 2Q $13.8 30 Rev. EPS Rev. EPS $12.4 $0.18 $12.8 $0.22 15.0 0.35 16.0 0.30 21.0 0.42 22.2E 0.43E 26.0 0.52 28.0 0.53 Year Rev. EpS 1975 $50.2 $0.74 1976 63.2 1.31 1977E 85.0 1.68 1978P 110.0 2.10 4Q Rev. EPS $13.8 $0.24 17.5 0.33 23.0E 0.43E 31.0 0.55 Additional Information Available Lehman Brothers Incorporated managed or co- managed a public offering of securities within the last three years of Four -Phase Systems, Inc. Lehman Brothers Incorporated makes a market in the common stock of Four -Phase Systems, Inc. - 24 - APPENDIX Current-Clients-of Four -Phase S stems, Inc. COMMUNICATIONS AT &T Illinois Bell Dell of Pennsylvania Pacific Northwest Bell Western Union DISTRIBUTION Allied Stores American Hospital Supply Associated Dry Goods Carson Pirie Scott Federated Department Stores Gamble- Skogmo Macy's Sears Western Auto Supply Woolworth, F.W. EDUCATION Brigham Young University University of Colorado University of Michigan FINANCIAL Bank of America Bankers Trust Becker, A.G. Bessemer Securities Chemical Bank Chicago Title & Trust CIT Financial Depository Trust (NYSE) Donaldson, Lufkin &.Jenrette Dun & Bradstreet Federal National Mortgage Assn. Federal Reserve Bank of NY First National Bank of Chicago Manufacturers Hanover Trust Marine Midland Bank Salomon Brothers GOVERNMENTAL California, State of Chicago Police Department - 25 - City of St. Louis D.C. Unemployment Dept. of Agriculture FBI Human Resources Admin.(NYC) Indiana Employment Security IRS Library of Congress Los Angeles County Social Security Administration U.S. Civil Service U.S. Navy INSURANCE Aetna Casualty & Surety Allstate Insurance Colonial Penn Continental Assurance Farm Bureau Firemans Fund FDIC Home Insurance Kemper Insurance Metropolitan Life MFA Mutual Minnesota Mutual Northwestern National Life MANUFACTURING .Allied Chemical American Motors Amoco Products Company Armco Steel Boise Cascade Borden (FNMA) Caterpillar Tractor Chevron Oil Corning Glass Works Diamond Shamrock duPont, E.I. Emerson Electric Federated Mogul Ford Motor General Motors Goodrich, B.F. Goodyear Tire APPENDIX (Cont'd) MANUFACTURING (Cont'd) Rberner- Waldorf Inland Steel International Harvester ITT Continental Baking Johnson & Johnson Kraftco Max Factor (Norton,Simon) Perkin -Elmer Procter & Gamble Rockwell International Scott Paper Searle, G.D. Standard Brands' Union Carbide Westinghouse Xerox Zenith Radio MEDICAL Southern Pacific Railroad Trans World Airlines United Air Lines Western Air Lines UTILITIES Boston Edison Northern States Power Philadelphia Electric Southern California Edison Wisconsin Electric OTHERS United Mine Workers. United Nations YMCA Huff, Barrington & Owens Kaiser Foundation Medical Care Program McDonnell Douglas Automation Medical Information Shared Medical Systems SERVICE Automatic Data Processing Boeing Computer Services Bradford Computer Chemical Abstracts Donnelly, R.H. D'Arcy, McManus & Maslus EDS Federal Systems Hall, Frank B. Holiday Ii:ns Nielsen, A.C. Wometco TRANSPORTATION Allegheny Airlines American Airlines Continental Air Lines Eastern Air Lines General American Transportation Illinois Central Railroad Milwaukee Road National Airlines - 26 - CITY OF RICHFIELD, MINNESOTA Office of City Manager Council Letter No. 367 Agenda December 12, 1977 The Honorable Mayor and Members of the City Council City of Richfield Gentlemen: Subject: Resolution Authorizing Advance Refunding Bonds of 1978 The purpose of this council letter is to propose a resolution providing for council authorization to call for bids for Advance Refunding Bonds of 1978. When the city sold its last bond issue in July, 1977, we received a very favorable 5.00% interest rate. That rate was substantially lower than the July, 1977 bond buyers index of 5.62 %. Since this summer, the bond buyer's index has decreased to a present level of 5.47 %. During times of declining interest rates, bond issuers should consider the possibility of replacing higher cost long term debt with lower cost debt, to achieve interest rate savings. Accordingly, the Finance Director, and our bond consultant, T. G. Evensen, have been reviewing the city's indebt- edness and exploring alternatives to determine the feasibility of refunding previous bond issues to achieve interest rate savings. The city has two bond issues which are eligible understate law for con- sideration of advance refunding. These are the Improvement Bonds of 1974 ($3, 060, 000 with coupon rates of 5.00% and 6.00 %) and Tmprovement Bonds of 1975 ($4,600, 000 with coupon rates of 5. 60% and 7.00 %). Advance re- funding of a bond issue requires that refunding bonds be sold prior to the first call date of the bondissue that is being refunded. The proceeds of the advance refunding issue are then temporarily placed in an escrow account and invested in interest bearing securities until the old obligation can be retired on its first call date. The bonds of 1974 are callable on February 1, 1986, and the bonds of 1975 are callable on February 1, 1987. Although it is expected that the bond market will continue to hold as is into the first quarter of 1978, the exact amount of interest savings to be effected will not be known until the bids are taken. In addition, the Council Letter No. 367 -2 December 12, 1977 entire refunding process is tightly controlled by federal arbitrage regulations and Minnesota State Law. The request to call for bids on Advance Refunding Bonds of 1978 is de- signed to accomplish three objectives: 1. To effect an interest rate savings estimated at approximately $800,000. 2. To reduce debt service tax levy requirements by an estimated $800,000 over the next ten years (the same time period that the old bonds are not subject to call) . 3. To reduce the city's total bonded indebtedness by funding the principal and interest payment due on February 1, 1978 with available Bonds of 1974 and 1975 debt service funds. In effect, we will be refunding $7,,660, 000 in outstanding bonds with a new issue of $6, 570, 000. Other advantages that would accrue to the city in this process would be that the refunded bonds would become AAA rates, since they would be fully funded, and the new bond issue (Bonds of 1978) could be issued with the AA rate the city received in the summer of 1977. The city attorney is preparing a resolution calling for bids on the sale of Advance Refunding Bonds of 1978. These bonds would be dated January 1, 1978 and mature on February 1, 1979 through 1997. The bid opening will be scheduled for 11:00 a.m. on Wednesday, January 4, 1978. It would be necessary for the council to schedule a special council meeting later that same day to award the bid. Therefore, it is recommended that the city council take the following actions: 1. Adopt the resolution authorizing the issuance and sale of $6., 570, 000 Advance Refunding Bonds of 1978. 2. Calf a special council meeting for 5:00 p.m. , Wednesday, January 4, 1978 for the purpose of considering bids on these bonds. Respectfully submitted, 4" <S, 1L,) Wayne S. Burggraaff City Manager cc: Finance Director City Attorney j n EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF RICHFIELD, HENNEPIN COUNTY, MINNESOTA Pursuant to due call and notice thereof a regular meeting of the City Council of the City of Richfield, Hennepin County, Minnesota, was held at the City Hall in said City on Monday, December 12, 1977, commencing at o'clock P.M. The following members were present: and the following were absent: The following resolution was presented by Councilmember who moved its adoption: RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $6,570,000 GENERAL OBLIGATION REFUNDING BONDS OF 1978 BE IT RESOLVED By the City Council of the City of Richfield, Hennepin County, Minnesota as follows: WHEWS, the City is authorized by the provisions of Minnesota Statutes, Section 475.67, (the "Act "), to issue and sell bonds to refund in advance of their maturity outstanding bonds of the City when determined by the City Council to be necessary and desirable for the reduction of interest cost and the adjustment of maturities of outstanding bonds; and WHEREAS, the City Council hereby determines that it is necessary and desirable for the reduction of interest costs and the sound financial management of the City to refund certain outstanding bonds of the City, such bonds being all the outstanding bonds (the "Outstanding Bonds ") of the following issues: U a) General Obligation Improvement Bonds of 1974, dated May 1, 1974, of which the aggregate principal amount outstanding is � and 3, obo,on b) General Obligation Improvement Bonds of 1975, dated May 1, 1975, of which the aggregate principal amount outstanding is $4,600,000, and WHEREAS, all conditions required under the Act exist for the sale of bonds to refund the Outstanding Bonds in advance of their maturity. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RICHFIELD, BENNEPIN COUNTY, MINNESOTA, AS FOL qS: 1. For the purpose of providing moneys to refund the Outstanding Bonds in advance of maturity, the City shall issue and sell its General Obligation Refunding Bonds of 1978 (the "Refunding Bonds ") in the principal amount of $6,570,000. 2. The Refunding Bonds shall be issued and sold in accordance with the terms of the following Official notice of Sale: a OFFICIAL NOTICE OE' SALT. $6,570,000 General Obligation Refunding Bonds of 1978 City of Richfield Hennepin County, Minnesota NOTICE IS HEREBY GIVEN that sealed bids for the purchase of $6,570,000 General Obligation Refunding Bonds of the City of Richfield will be received until 11:00 o`clock A.M. on Wednesday, January 4, 1978 at the office of the City Manager, in the City Municipal Building, 6700 Portland Avenue South, Richfield, Minnesota 55423, at which time the bids will be opened and tabulated for presentation to the City Council for its consideration at a special meeting at 5:00 p.m. that same day. The Fonds will be negotiable coupon, general obligation bonds of the City and are offered on the following terms: Purpose and Security Zne purpose of the bonds is to provide funds to refund in advance of their maturity certain outstanding general obligation bonds of the City. The bonds will be general obligations of the issuer, for which its full faith, credit and taxing powers are pledged. Date and Maturities The bonds will be dated January 1, 1978, will be in the denomination of $5,000 each, unless other denominations are requested by the purchaser within 48 hours of the award, and will mature on February 1 in the following years and amounts: Year Amount Year Amount 1979 $295,000 1990 $420,000 1980 320,000 1991 .415,000 1981 310,000 1992 410,000 1982 300,000 1993 405,000 1983 300,000 1994 400,000 1984 295,000 1995 395,000 1985 280,000 1996 390,OG0 1986 270,000 1997 230,000 1987 265,000 1988. 450,000 1989 420,000 The City reserves the right to reduce the principal amount of Bonds maturing in 1979 by an amount not to exceed $50,000. Redemption Feature All bonds of this issue maturing in the years 1989 to 1597, inclusive, are subject to prior redemption at the option of the City in inverse order of serial numbers on February 1, 1987 and any interest payment date thereafter at par plus accrued interest. Interest interest on the bonds will be payable on August 1, 1978, and semiannually thereafter on each February 1 and August 1. All bonds maturing on the same date must bear interest from date of issue until paid at a single, uniform rate. Rates are to be expressed in multiples of 5/100 of 1 %. No more than 12 rates may be specified and the difference between the highest and lowest rate may not exceed 1%. The City reserves the right to specify the coupon rate for each maturity or otherwise limit the bidding provisions at any time prior to 1:00 P.I., C.S.T., Tuesday, January 3, 1978 and in such event will use its best efforts to notify prospective bidders. Any prospective bidder may register his /her name and address with the City's financial consultant, T.G. Evensen & Associates for the purpose of receiving such notice. Paying Agent Principal and interest will be made payable at a suitable bank recommended by the purchaser and approved by the Council, and the City will pay customary charges for this service provided that such recommendation is received within 48 hours after the sale and the City will select the paying agent if the recommendation is not approved. CUSIP Numbers The City will assume no obligation for the assignment or printing of CUSIP numbers on the bonds or for the correctness of any numbers printed thereon, but will permit such numbers to be assigned and printed at the expense of the purchaser, if the purchaser waives any extension of the time of delivery caused thereby. Delivery Within 25 days after sale, the City will furnish and deliver to the office of the purchaser or, at his option, will deposit with a bank in the United States selected by him and approved by the City as its agent to permit examination by and to deliver to the purchaser, the printed and executed bonds, the unqualified opinion thereon of bond counsel, and a certificate stating that no litigation in any manner questioning their validity is then at or pending. The charge of the delivery agent must be paid by the purchaser, but all other costs will be paid by the City. The purchase price must be paid upon delivery of the bonds, or within five days after deposit with the delivery agent, in funds available for expenditure by the City on the day of payment. Legal Opinion An unqualified legal opinion on the bonds will be furnished by Messrs. LeFevere, Lefler, Pearson, O'Brien & Drawz of Minneapolis, Minnesota. The legal opinion will be printed on the bonds at the. request of the purchaser. The legal opinion will state that the bonds are valid and binding general obligations of the City, and the City is obligated and required to levy taxes for any deficiency in amounts necessary for the prompt payment of principal and interest thereon as the same become due without limit as to rate or amount. of Bid - Amount Sealed bids must be mailed or delivered to the undersigned and must be received prior to the time stated above. Each bid must be unconditional and must be accompanied by a cashier's or certified check or bank draft in the amount of $131,400, payable to the City Treasurer, to be retained by the City as liquidated damages if the bid is accepted and the bidder fails to comply therewith. The bid authorizing the lowest net interest cost (total interest from date of bonds to stated maturities, less any cash premium) will be deemed the most favorable. No oral bid and no bid of less than $6,570,000 for principal plus accrued interest on all of the bonds will be considered, and the City reserves the'right to reject any and all bids and to waive any informality in any bid. BY ORDER OF �fIIE CITY COINCIL /s/ Thomas J. Moran City Clerk Dated: December 12, 1577 a 3. The City Clerk is authorized and directed to .advertise the Refunding Bonds for sale in accordance with the foregoing official notice of sale and to cause the official notice of sale to be published in the manner required by law. The City Council shall meet on Wednesday, January 4, 1978, at 5:00 o'clock p.m. for the purpose of considering sealed bids on the Refunding Bonds and taking any other . appropriate action. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember and upon vote being taken thereon, the following voted in favor of the motion: and the following voted against: whereupon said resolution was declared duly passed and adopted. t L r f STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) SS. CITY OF RICHFIELD ) I, the undersigned, being the duly qualified and acting City Clerk of the City of Richfield, Minnesota, do hereby certify that I y have carefully compared the attached and foregoing extract of a regular meeting of the City Council of said City held on Monday, December 12, 1977, with the original thereof on file in my office and the same is a full, true and correct copy thereof, insofar as the same relates to the .issuance and sale of $6,570,000 General Obligation Refunding Bonds of 1978, of the City. WITNESS My hand as such Clerk and the corporate seal of the City.this _ day of December, 1977. "`�� City Clerk City of Richfield, Minnesota (SEAL) i The Honorable Mayor and CITY OF RICHFIELD, MINNESOTA Office of City Manager Members of the City Council City of Richfield Gentlemen: i Council Letter No. 366 Agenda December 12, 1977 Subject: Request for Zoning District Change, 7344 Cedar Avenue Ms. Carol J. Swanson, executor and heir of the estate of Jessie M. Haeg, and Robert A. Williams, representing Geraldine Investments, have requested a zoning district change from multi- family residential (MR) and general commer- cial (C -2) to neighborhood commercial (C -1) for property located at 7344 Cedar Avenue. This rezoning is requested to permit operation of a real estate. office, a construction company office and a service station office on this property. The following items are attached to this letter and will be referred to throughout: Exhibit A - Proposed site plan Exhibit B - Current area land use Exhibit C - Current area zoning Exhibit D - Area included in re- zoning petition Ba ckground Parcel Size - 123' 2" x 130 3" (16,043 sq. ft.) Existing Structures one dwelling (1,19 3 sq. f t ( built in 1959 and attached garage (506 sq. ft.) Proposed Structure: Existing structures will remain Setbacks: Dwelling = 40' front 34.67' - north side 50' - south side Site Zoning General Commercial (C -2) and Multi- family residential (MR) Site land Use Single family residential Surrounding Zoning and Land Use N- multi - family residential E -T. H. 36 right of way W- multi - family residential S - general commercial " Council Letter No. 366 -2- December 12, 1977 Land Use: N- single family residential E -T. H. 36 - W- single family residential S- neighborhood commercial Comprehen- sive Plan The comprehensive plan indicates mixed land use with medium density single family, multi - family and neighborhood commercial uses. Staff Review Comprehensive Plan - the comprehensive plan indicates mixed land use with medium density for this area. Such uses would include a combination of single family dwellings, townhouses and neighborhood convenience commercial estab- lishments. It is the staff's conclusion that the proposed use would be in conform - ance with the comprehensive plan. Property Value -The city assessor's office shows that the land is presently valued at $9,500, and market value of the existing buildings is $23,900. The estimated market value of the land could increase if the entire parcel were zoned the same, and if the zoning were changed to (C -1) . Relationship to Existing Zoning and Other Development Considerations- the area surrounding the site of the proposed zoning district change is zoned multi - family residential and general commercial. The majority of land along Cedar Avenue is zoned general commercial, so any rezoning for commercial use would be consistent with the character of the area. The existing single family residential use would not seem to be the best use of the land, due to the proximity of commercial uses in the area and T.H. 36. However, the long range effect of converting residential property to commercial uses must also be considered. Conversion of residential land into commercial land could limit the city's alAlity to deliver suitable housing for low and moderate income people which could, in turn, have negative effects on the city's ability to receive federal financial assistance. A neighborhood commercial zone would be a buffer for residential areas to the west of the site, and would be compatible.with single family and multi- family uses in the area. The renovation of the present structure would involve the addition of an exterior door, stairway, and parking area, which would change the character of the site. However, the resulting repair and cleanup of the site and structure would improve its aesthetic appearance and have a beneficial aesthetic influence on the surrounding area. Staff Recommendation Since the proposed rezoning is consistent with the comprehensive plan, 0 Council Letter No. 366 -3- December 12, 1977 the effects of such rezoning on the character of the area would be minimal and the resulting improvement and use of the property would be an overall improvement to the neighborhood, it is the recommendation of the staff that the request for a zoning district change be granted. Planning Commission Recommendation The planning commission reviewed this request for rezoning at their regular meeting of November 22, 1977. The applicant appeared at the meeting and described plans for use of the property. One area resident also appeared at the meeting in favor of the rezoning. The planning commission voted 7 -0 -1, with commissioner Ketcham ab- staining, to recommend that the city council approve the zoning district change from multi - family residential (MR) and general commercial (C -2) to neighbor- hood commercial (C -1). Respectfully submitted, Wayne S. Burggraaff City Marrager WSB /e j a cc: Planning and Redevelopment Director Public Works Director City Attorney 't Y- ' • i, 65.27 65 20 �tE 25' t .Parking AGE .' co t CONVERTED i • _ _ 8650 DWELLING 8625 TO OFFICE walk Prkq. -- W C -2 MR a' �--- Exist. walk -- y CEDAR AVE._,, -- 1 � �t2' ❑ o DX l9 �] 1E 20 Q A z . 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I u a 2 D I _U _43 8.3 3 71 A �} j � ❑ , r,4 4 4 615 S-T J� SIGNERS NON-SIGNERS I- i EA S. IV2.217-, CITY OF RICHFIELD, MINNESOTA Office of City Manager R The Honorable Mayor and Members of the City Council City of Richfield Gentlemen: Council Letter No. 365 Agenda December 12, 1977 Subject: Request for Variance 7128 James Avenue Mrs. Arlene A. Gibbs, 7128 James Avenue , has requested a variance to the ordinance which establishes the sideyard building setback line. Mrs. Gibbs wishes to add a second story onto her existing one -story house. Background Parcel Size: 60' x 135' (8,100 sq. ft.) Existing Setback: 5' 4" (one story house) Proposed Setback: 5' 4" (two story house) Required Setback: 10' (two story house) Distance from Adjoining Structure: 26' 8 " Existing total Building Height: 20' Proposed total Building Height 30' The requested variance is for the sideyard on the north. Section 3.30, sub- division 4.3 of the zoning ordinance requires that buildings of two or more stories in a residential district (R) have sideyards of not less than 10 feet in width. The existing house has a setback of 5 feet 4 inches and, thus, a variance is required to permit construction of a second story. Zoning Requirements A request for a variance must be judged in accordance with conditions set forth in Section 3.41, subdivision 6 of the city code. The city council should grant a variance only if all of these conditions are present on the property. Staff Review '? The staff has reviewed this.requested variance against these conditions Council Letter No. 365 -2- December 12, 1977 and made the following findings: 1. That there are special circumstances or conditions affecting the particular land, building or use referred to in the applica- tion, not common to other properties in this district or similar districts. It is the opinion of the staff that there are no special circumstances or con- ditions affecting this property or building not common to other properties in this district. The neighborhood consists mostly of one and one -half story homes located on 50 or 60 foot lots, similar to the Gibbs' property. 2. That the granting of the application is necessary for the pre- servation and enjoyment of substantial property rights. It is the opinion of the staff that a variance is not necessary for the preserva- tion of property rights. Denial of the variance does not preclude the applicant from using the property for single family residential use. ` 3. That the granting of the application will not materially and adversely affect the health and safety of persons residing or _working in the neighborhood of the property of the applicant and will not be materially detrimental to the public welfare or injurious to property or improvements in the neighborhood. The proposal represents a substantial improvement to the property and investment in the neighborhood. However, setback requirements are established to insure that the character of an area is maintained. The granting of this variance, allowing a fifty percent encroachment on the sideyard setback, could set a precedent which would permit future construction with similar setbacks creating more crowded conditions than presently exist. This could be materially detrimental to the public welfare of the neighborhood by adversely affecting property values. Staff Recommendation Since all the conditions described in Section 3.40, subdivision 6 do not exist on the applicant's property, it is the recommendation of the staff that the request for a variance should be denied. Planning Commission Recommendation The planning commission reviewed this request for variance at their regular meeting of November 22, 1977. The applicant appeared at the meeting. The j Council Letter No. 365 -3- December 12, 1977 planning commission discussed the possibility of setting a precedent if this variance is granted, and the possible crowding that could occur if the next door neighbor were to build up to his permitted setback line. The planning commission voted 5 -3. to recommend that the city council approve granting of this variance. Respectfully submitted, S� Wayne S. Burggraaff City Manager WSB /eja cc: Planning and Redevelopment Director Public Works Director GARAGE ' Scale t I "= 20' GARAGE 1 Z s M • t _ 5'4L-> 7128 JAMES 25 7124 JAMES 3 o Sidewalk 11'2" o _ o a 60' - curb JAMES AVE. so., CITY OF RICHFIELD, MINNESOTA • Office of City Manager Council Letter No. 364 Agenda December 12, 1977 The Honorable Mayor and Members of the City Council City of Richfield Gentlemen: Subject: Resolution Terminating the Metropolitan Sports Area Commission Attached to this council letter is a resolution providing for dissolution of the Metropolitan Sports Area Commission, in accordance with the state legislation which created the new Metropolitan Sports Facilities Commission. It is recommended that the city council adopt this resolution at their December 12, 1977 meeting. Respectfully submitted, ff)&,W 5. ?TAI Wayne S. Burggraaff City Manager WSB /eja cc: City Attorney RESOLUTION OF THE CITY OF RICHFIELD NO. WHEREAS, the Minnesota Legislature has passed into law Minnesota Statute Chapter No. 473 et. seq.; and WHEREAS, pursuant,to that section of law a new Metropolitan Sports Area Facilities Commission was created; and WHEREAS, pursuant to Section 473.564, Subdivision 1, said Metropolitan Sports Area Facilities Commission is authorized to commence ownership of the Metropolitan Sports Area; and WHEREAS, said Metropolitan Sports Area Sports Facilities Commission has determined to assume ownership of said Metropolitan Sports Area as of December 1, 1977. NOW, THEREFORE, BE IT RESOLVED: That the City of Richfield, pursuant to Section 5.1 - 2 of the Owners and Operations Agreement, does hereby terminate the Metropolitan Sports Area Commission upon the unanimous consent of the adoption of this resolution or a similar resolution by the Cities of Minneapolis and Bloomington. CITY OF RICHFIELD In the presence of: By Its Mayor By Its City Manager IF 3 /7 CITY OF RICHFIELD, MINNESOTA Office of City Manager Council Letter No. 363 Agenda December 12, 1977 The Honorable Mayor and Members of the City Council City of Richfield Gentlemen: Subject: Recommendation for Denial of Taxicab Driver's License The December 12, 1977 city council agenda lists Randall Eugene Bryan as an applicant for a taxicab driver license. On the basis of background investigation by the Public Safety Department, we are recommending denial of this application. The Public Safety Department investigation revealed that Mr. Bryan has an 'extensive record of traffic violation convictions, as well as several criminal offense convictions. Additionally, Mr. Bryan listed only one criminal conviction and no traffic violations on his application, and he failed to have his application notarized. It is the opinion of the Public Safety Department that Mr. Bryan's history of traffic and criminal violations relate directly to the license for which he has applied. Therefore, it is recommended that this license application be denied. WSB /eja cc: City Attorney Deputy City Cierk Public Safety Director Respectfully submitted, 00 S, R . Wayne S. Burggraaff City Manager CITY OF RICHFIELD, MINNESOTA Office of City Manager The Honorable Mayor and Members of the City Council City of Richfield Gentlemen: 5 Council Letter No. 362 Agenda December 12, 1977 Subject: Ordinance Amendment Increasing the Nu mber of Taxicab Licenses On November 14, 1977 the city council gave first reading consideration to an ordinance amendment increasing the maximum number of taxicab licenses from 67 to 115. This amendment is scheduled for second reading consideration at the December 12, 1977 city council meeting. The ordinance amendment was initiated following a request from the Yellow Cab Company to license 48 additional taxicabs. The additional licenses have been requested to implement a shared ride program which Yellow Cab is prop- osing to operate in Richfield, Edina and Bloomington. This program is depend- ent upon receipt of a state grant for which Yellow Cab has made application. The city council adopted a resolution supporting the Yellow Cab grant applica- tion at the September 12, 1977 meeting. At the November 14, 1977 city council meeting it was requested that a determination be made as to whether the 48 additional licenses would mean that more taxicabs would be parked at the Yellow Cab site on Cedar Avenue.. Mr. Jeffery Feldman, President of Yellow Cab Company, has advised the Public Works Director that the additional licenses will not mean that additional vehicles will be stored at the Cedar Avenue site. The company has advised us that they do not anticipate any substantial change in where their vehicles are stored throughout the area in which they operate. Rather, the increased number of licenses will make it possible for a larger number of taxicabs to operate in the City of Richfield as part of the shared ride program. It is recommended that the city council give second reading consideration and adopt the attached ordinance amendment increasing the maximum number of taxicab licenses which may be issued from 67 to 115. Respectfully sub fitted, cc: City Clerk Wayne S. Burggraaff r". .,-I. - 0-F_4 T'lir ritv Vlnnaaer A AMENDMENT TO SUBDIVISION 12 OF SECTION 6.20 9OF THE ORDINANCE CODE OF THE CITY OF RICHFIELD, MINNESOTA CITY OF RICHFIELD DOES ORDAIN: Subdivision 12 of Section 6.20 of the City Ordinance Code of the City of Richfield relating to the number of authorized taxicab licenses, is hereby amended to read as follows: "Subd. 12. Maximum Number of Licenses Granted. The maximum number of taxicab licenses to be granted pursuant to this section until next amended shall be limited to [67] 115." Passed by the City Council of the City of Richfield, Minnesota, this day of 1977. ATTEST: Thomas J. Moran City Clerk Loren L. Law Mayor