11-24-09 agenda packetCITY OF RICHFIELD, MINNESOTA
TUESDAY, NOVEMBER 24, 2009
SPECIAL CITY COUNCIL WORKSESSION
CITY HALL COUNCIL CHAMBERS
6700 PORTLAND AVENUE
6:00 P.M.
AGENDA
Call to order
Roll call
1. Discussion with Minnesota Life College regarding future expansion plans
Notes:
2. Discussion with Richfield Chamber of Commerce
Notes:
Adjournment
*******************************************************************************************************
REGULAR CITY COUNCIL MEETING
CITY HALL COUNCIL CHAMBERS
6700 PORTLAND AVENUE
7:00 P.M.
AGENDA
INTRODUCTORY PROCEEDINGS
Call to order ,
Roll call
Open forum (15 minutes maximum)
Each speaker is to keep their comment period to three minutes to allow sufficient time for
others. Comments are to be an opportunity to address the Council on items not on the agenda.
Individuals. who wish to address the Council must have registered prior to the meeting.
Notes:
Pledge of Allegiance
Approval of minutes of (1) Special City Council Meeting of November 2, 2009 and (2)
Special City Council Meeting of November 6, 2009
PRESENTATIONS
1. Presentation by Richfield School Superintendent Robert Slotterback
2. Presentation of Certificate of Achievement for Financial Reporting to Finance Manager
Chris Regis (Council Memo No. 193)
COUNCIL DISCUSSION
3. Council discussion
• Welcome to Richfield booklet
• Hats Off to Hometown Hits
Notes:
AGENDA APPROVAL
4. Council approval of agenda
CONSENT CALENDAR
5. Consent Calendar contains several separate items, which are acted upon by the City
Council in one motion. Once the Consent Calendar has been approved, the individual
items and recommended actions have also been approved. No further Council action is
necessary. However, any Council Member may request that an item be removed from
the Consent Calendar and placed on the regular agenda for Council discussion and
action. All items listed on the Consent Calendar are recommended for approval.
A. Consideration of approval of first reading of ordinance amending Section 930 of
Richfield City Code relating to regulation of noise and scheduling public hearing and
second reading for December 8, 2009 S.R. No. 231
B. Consideration of approval of resolution authorizing City of Richfield Public Safety
Department acceptance of grant funds from State of Minnesota, Commissioner of
Public Safety, State Patrol Division, pertaining to payment of overtime for officers
involved in Operation NightCAP traffic enforcement S.R. No. 232
C. Consideration of approval of resolution amending previous agreement regarding
Department of Public Safety/Police accepting funding from Hennepin County .
Department of Human Services and Public Health for Joint Community Police
Partnership police cadet program S.R. No. 233
D. Consideration of approval of resolution authorizing submittal of grant application to
Hennepin County Youth Sports Program for funding Richfield Lincoln Athletic
Complex renovation S.R. No. 234
E. Consideration of approval of resolutions authorizing lease agreements to Clearwire
Corporation for antenna and/or microwave dish space on Penn Avenue and Logan
Avenue water towers S.R. No. 235
F. Consideration of approval of contract change order #13 to install footings and
structures for four scoreboards in amount of $18,436; Lincoln Athletic Complex
renovation S.R. No. 236
G. Consideration of approval of bid/minute tabulation and authorizing purchase from
General Safety Equipment, LLC of fire pumper truck and related equipment in
amount of $381,102 and authorizing execution of agreement for trade-in of existing
fire pumper truck as part of purchase S.R. No. 237
H. ,Consideration of approval of change order to Insituform Technologies USA, Inc. for
purchase and installation of additional sewer lining in amount of $4,051.80 S.R.
No. 238
Notes:
6. Consideration of items, if any, removed from Consent Calendar
Notes:
RESOLUTIONS
7. Consideration of resolution requesting advance of 2011 Municipal State Aid street funds
Staff Report No. 239
Notes:
8. Consideration of resolution modifying Health Care Savings Plan for Mayor and Council
Members
Staff Report No. 240
Notes:
CITY MANAGER'S REPORT
9. City Manager's report
Notes:
10. Claims and payrolls
Open forum (additional 15 minutes if more time needed after first Open Forum and by
majority vote of the City Council)
Each speaker is to keep their comment period to three minutes to allow sufficient time for
others. Comments are to be an opportunity to address the Council on items not on the agenda. .
Individuals who wish to address the Council must have registered prior to the meeting.
Notes:
11.Adjournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must be
made at least 96 hours in advance to the City Clerk at 612-861-9738.
J
SPECIAL CITY COUNCIL
MEETING MINUTES
Richfield, Minnesota
Special Meeting of the City Council
November 2, 2009
CALL TO ORDER
The meeting was called to order by Mayor Goettel at 6:05 p.m.
ROLL CALL
Council Members
Present: Debbie Goettel, Mayor; Pat Elliott; Fred Wroge; Sue Sandahl; and Tom
Fitzhenry. .
Staff Present: Steven L. Devich, City Manager; Dave Conrads, Building Maintenance
Supervisor; Pam Dmytrenko, Assistant to City Manager; and Cheryl
Krumholz, Recording Secretary.
Item #1 DISCUSSION OF COUNCIL CHAMBERS DESIGN REGARDING ACOUSTICS,
DAYLIGHTING, AND AUDIO VISUAL SYSTEMS; POLICE/FIRE/CITY HALL
FACILITY PROJECT (COUNCIL MEMO NO. 182)
Mike Cox, WOLD Architects, discussed the following:
1. Design Update
• Floor Plan
• Reflected Ceiling Plan
• Section of interior views
2. Acoustics
• Ceiling and walls
• Glass wall
• Wall at server kitchen
• Mechanical system
Special Meeting Minutes -2- November 2, 2009
3. Daylighting (Council Member Sandahl left at 6:35 p.m.)
• Skylight at Cirinal dais
• Materials, colors, and tones
4. Lighting
• Ambient lighting system
• Presentation
5. Audio-visual system
• Projector screen
• LCD's
• Projector versus LCD
Steve Orfield, Orfield & Associates, discussed the possible location of a projector and
screen.
The City Council consensus was to have a drop down screen, not permanent screen,
behind the dais with one projector in the rear or middle portion of the room and two LCD's in the
room and one LCD mounted on the ceiling outside the room.
The City Council consensus was the Chambers should be designed as amulti-purpose use
room, not theatrical-use room.
Mike Role, Orfield & Associates, discussed the two options for location and design for
loudspeakers; both costs are nominal and the same.
The City Council consensus was to have a central array loudspeaker system.
Mike Klass, WOLD Architects, reviewed the construction budget scenarios, including value
engineering/scope of work reductions and alternates. The alternates only will be in the bid
package.
Mr. Klass discussed the durability and maintenance of terrazzo versus porcelain the
flooring.
Mr. Cox asked Mr. Orfield if there was a need to meet again with the Council on further
decision-making.
Mr. Orfield replied that all the topics have been discussed.
Mr. Role replied that decisions have been made.
Mr. Klass discussed the next step in the construction schedule.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:20 p.m.
Special Meeting Minutes -3- November 2, 2009
Date Approved:
Debbie Goettel
Mayor
Cheryl Krumholz
Recording Secretary
Steven L. Devich
City Manager
J
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Special City Council Meeting
Closed Executive Session
November 6, 2009
CALL TO ORDER
The meeting was called to order by Mayor Pro Tempore Sandahl at 10:00 a.m. in the
Council Chambers.
ROLL CALL
Members Present: Sue Sandahl, Mayor Pro Tempore; Pat Elliott; Fred Wroge; and Tom
Fitzhenry.
Members Absent: Debbie Goettel, Mayor.
Staff Present: Steven Devich, City Manager; Corrine Heine, City Attorney; and Cheryl
Krumholz, Recording Secretary.
City Attorney Heine stated that a Closed Executive Session was requested to discuss a
proposed condemnation award settlement for 7745 Lyndale Avenue.
By unanimous consent the City Council left the Council Chambers at 10:01 a.m. to conduct
a Closed Executive Session in the Executive Conference Room.
Item #1 SPECIAL CITY COUNCIL CLOSED EXECUTIVE SESSION IN EXECUTIVE
CONFERENCE ROOM TO DISCUSS PENDING LITIGATION REGARDING
CONDEMNATION AWARD FOR TAKING AT 7745 LYNDALE AVENUE SOUTH,
IN CONNECTION WITH LYNDALE BRIDGE PROJECT
The Closed Executive Session was called to order by Mayor Pro Tempore Sandahl in the
Executive Conference Room at 10:04 a.m.
Members Present: Debbie Goettel, Mayor (via telephone conference); Sue Sandahl; Pat
Elliott; Fred Wroge; and Tom Fitzhenry.
Staff Present: Steven L. Devich, City Manager; Mike Eastling, Public Works Director;
Corrine Heine, City Attorney; and Cheryl Krumholz, Recording Secretary.
The Closed Executive Session was convened pursuant to M.S. 13D.05.
Closed Executive Session Minutes -2- November 6, 2009
Mayor Goettel left the telephone conference at 11:05 a.m.
The Closed Executive Session was adjourned by unanimous consent at 11:06 a.m. in the
Executive Conference Room.
Item #2 RECONVENE IN OPEN SESSION IN COUNCIL CHAMBERS FOR. POSSIBLE
CITY COUNCIL ACTION
The open session meeting was called to order by Mayor Pro Tempore Sandahl at 11:10
a.m. in the Council Chambers.
Members Present: Sue Sandahl, Mayor Pro Tempore; Pat Elliott; Fred Wroge; and Tom
Fitzhenry.
Members Absent: Debbie Goettel, Mayor.
Staff Present: Steven Devich, City Manager; Corrine Heine, City Attorney; and Cheryl
Krumholz, Recording Secretary.
City Attorney Heine stated that she has received direction to conduct further negotiations
and report back to the City Council with the results.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 11:11 a.m.
Date Approved:
Cheryl Krumholz
Recording Secretary
Suzanne M. Sandahl
Mayor Pro Tempore
Steven L. Devich
City Manager
CITY OF RICHFIELD, MINNESOTA
Office of City Manager
November 19, 2009
Council Memorandum No. 193
The Honorable Mayor
and
Members of the City Council
Subject: Presentation of the Certificate of Achievement for Financial Reporting
(Agenda Item No. 2)
Council Members:
The City was .recently notified that it's Comprehensive Annual Financial Report (CAFR)
for the fiscal year ended December 31, 2008 qualifies for a Certificate of Achievement
for Excellence in Financial Reporting from the Government Finance Officers Association
(GFOA). -The Certificate of Achievement is the- highest form of recognition in
governmental accounting and financial reporting and its attainment represents a
significant accomplishment by the government and its management. When a Certificate
of Achievement is awarded to a government, an Award of Financial. Reporting
Achievement is also given to the individual designated as primarily responsible for
having earned the certificate.
This is the 25th consecutive year that Richfield has earned the award and 29t" award
overall
The GFOA, which is responsible for presenting the certification, is a nonprofit,
professional association serving 15,000 government finance professionals. The
association provides a variety of technical publications in various fields of government
finance and represents the public community of Washington, D.C.
Richfield's CAFR was judged by an impartial panel to meet the constructive spirit of full
disclosure effort to clearly communicate its financial story and motivate potential
persons and users to read the financial report.
Presentation of the CAFR to Finance Manager Chris Regis is scheduled for the
November 24 City Council meeting.
SLD:cak
E-mail: Department Directors
Finance Manager
Assistant to the City Manager
AGENDA SECTION: CONSENT
AGENDA ITEM # SA
REPORT # 231
STAFF REPORT
CITE COUNCIL MEETING
NOVEMBER 24, 2009
REPORT PREPARED BY:
CORRIIVE HEINE, CITY ATTORNEY
NAME, TITLE
DEPARTMENT DIRECTOR
REVIEW:
REVIEWED BY CITY
MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
First reading of an ordinance amending Section 930 of the Richfield City Code; relating to
re ulation of noise and schedule second readin for December 8, 2009.
I. RECOMMENDED ACTION:
By Motion: Conduct a first reading of an ordinance:
1. amending Subsections 930.01, 930.03, 930.05, 930.11 and
930.13 of the .Richfield City Code; relating to regulation of
noise; and
2. Schedule public hearing and second reading for December 8,
2009.
II. BACKGROUND
The City staff recently determined that the City's ordinances regarding maximum
noise limits purports to establish a standard that is stricter than the noise limits
established by the Minnesota Pollution Control Agency rules. State law prohibits
cities from adopting noise limitations that are stricter than the state regulations. City
staff has proposed an amendment that would bring the City Code into conformance
with state {aw.
1124 First Reading of Resolution Amending and Regulating Noise Ordinance
The existing ordinance also refers to the state rules by an outdated form of citation.
The proposed amendment updates the ordinance to the current form of citation.
The existing ordinance requires permits for central air conditioning units and
authorizes the Community Development Director to require sound mitigation for
units that exceed the maximum sound pressure levels of the ordinance. The
proposed ordinance expands those requirements to include auxiliary generators and
other HVAC equipment.
The Minnesota Pollution. Control Agency confirms that the City may not establish
L10 or L50 sound .pressure levels that differ from state law and has recommended
that the City's ordinance conform to state law. The proposed ordinance adopts state
regulations by reference and, therefore, includes both the L10 and L50
requirements, as recommended by the MPCA staff.
An amended ordinance is, therefore, -being presented at this time to the City Council
for a first reading with a public hearing and second reading scheduled for December
8, 2009.
III. BASIS OF RECOMMENDATION
A. POLICY
• State law prohibits the City from adopting noise limitations that are
more stringent than those established by state rules.
• The City desires to protect the peace and quietude of residential
neighborhoods from noisy equipment that exceeds state limitations.
B. CRITICAL ISSUES
• Staff has confirmed with the MPCA the levels that the City can
place on their noise regulations.
C. FINANCIAL
• The proposed ordinance brings into conformance the City's noise-
regulations to those in state law.
• The ordinance adopts state regulations by reference rather than
repeating the contents of the state rules in the City ordinance. This
manner of adopting state rules should assure that the City and
state regulations will remain consistent.
• .The ordinance allows the community development director to
require sound mitigation of air conditioning units, auxiliary
generators, and other HVAC equipment that exceeds maximum
sound limits.
D. LEGAL
• The proposed ordinance will bring City noise limits into
conformance with state law.
E. ENVIRONMENTAL
CONSIDERATIONS
• Unregulated noise can disturb the peace and quietude of
neighborhoods and individuals.
IV. ALTERNATIVE RECOMMENDATION(S~
• None.
V. ATTACHMENTS
• Ordinance.
• Correspondence Between City Attorney Corrine Heine and Anne Claflin of
the Minnesota Pollution Control Agency
VI. PRINCIPAL PARTIES EXPECTED AT
MEETING '
• None
~R -
BILL NO.
AN ORDINANCE AMENDING
SUBSECTIONS 930.01, 930.03, 930.05, 930.11 AND 930.13
OF THE RICHFIELD CITY CODE; RELATING
TO REGULATION OF NOISE
THE CITY OF RICHFIELD DOES ORDAIN:
Section 1. Subsection 930.01 of the Richfield City Code is amended to read as
follows:
930.01. Subd. 3. "Motor vehicle" means (i) any self-propelled vehicle not
operated exclusively upon railroad tracks, (ii) any vehicle propelled or drawn by
any self-propelled vehicle, except snowmobiles.
Sec. 2. Subsection 930.03 of the Richfield City Code is amended to read as
follows:
930.03. Adoption of regulations by reference. The following state agency
regulations are adopted by reference: Minnesota Pollution Control Agency, Noise
Pollution Control Section,. 6 Mr:AR~S~S4 2A04 and NPG 'L Minnesota Rules
Chapter. 7030, as amended.
Sec. 3. Subsection 930.05 of the Richfield City Code is amended to read as
follows:
930.05. Receiving land use standards. Subdivision 1. Maximum noise levels by
receiving land use district.
For purposes of enforcina maximum noise levels by the receivina land use
property line of the receiving use which is closest to the source.
measured at the
Subd. 2. Exceptions. The
ann~v t~ tnA following exceptions to the maximum noise limits established by
state rules shall apply:
(a) construction activities described in subsection 930.09.
5A-~
(b) situations in which public health and safety require that immediate
work be done on any property the.. performance of which exceeds the sound
levels permitted for that time of day or for that day.
(c) situations in which the purpose of the sound is to alert persons to an
emergency or for the purpose of testing any alarm system.
Sec. 4. Subsection 930.11 of the Richfield City Code is amended to read as
follows:
930.11: Air circulation devices.; auxiliary generators. Subdivision 1. Permit
required. No person. may permanently install or place any sound emitting air
circulation devrce, auxiliary Generator or other heating, ventilation or air
circulation mechanical equipment, in any
outdoor location without first obtaining a permit for the installation. The
requirement for a permit does not apply to a window air conditioning unit or an
auxiliary generator that is temporarily placed during emeraencv use.
Subd. 2. Sound levels; mitigation required. The sound level produced by
any window unit, air circulation device, auxiliary generator and h~i an,~aYictin~,n air
circulating or other heating, ventilation or air circulation mechanical device shall
be reduced in the manner required by the director of ~ community
development. Such requirements may include, but are not limited to, placement
or installation of fencing landscaping or sound baffling equipment or relocation of
the device1 if the noise results or contributes to sound levels in excess of those
specified in Table L
Sec. 5. Subsection 930.13 of the Richfield City Code is amended to read as
follows:
9.30.13. Motor vehicles. Subdivision 1. General restrictions. No person may
operate a motor vehicle or combination of vehicles in such a manner as to exceed the
noise limits contained in Pollution Control Agency Rules; F nnraR a Anna Minn. R.
7030.1000-1060, as amended.
Sec. 6. This ordinance shall be effective in accordance with Section 3.09 of the
Richfield City Charter.
Passed by the City Council of the City of Richfield, Minnesota this day of
2009.
Debbie Goettel, Mayor
ATTEST:
Nancy Gibbs, City Clerk
5/~-~
From: Claflin, Anne [mailto:Anne.Claflin@state.mn.us]
Sent: Tuesday, August 05, 2008 3:54 PM
To: Corrine .Heine (External Address); Anne.Claflin@state.mn.us
Cc: Steve Devich
Subject: RE: Clarification regarding city regulation of noise levels
Corrine,
The interpretation of the statute is that any ordinance that lists a decibel level limit would
likely cause conflicts with the L10 and L50 standards, and would be in conflict with the
statute that says no local governments may set maximum sound levels-that are more
stringent.
Restricting the location of air conditioning units, operation, or other physical
characteristics may have the impact of reducing sound levels, but does not. refer to
decibel levels, so is acceptable. Restricting locations does not cause such a direct
conflict because it does not set "standards describing the maximum sound pressure
levels" that are more stringent than the rules.
do agree that the sound levels referenced in your Table 1 should be adjusted to match
the levels in state rules and noise area classifications, and suggest that the city include
both the L10 and L50 values.
_ As a side note, in practice, when the PCA does sound level monitoring, the guidelines
refer to outdoor areas that are regularly used for recreation, such as a patio, play set,
picnic table or garden seating area. We may be near the property line, especially in
residential areas, but the standard is not applied exactly at the property line. , In
residential areas this is usually not an issue because of the short distances and the
nature of the sound will not change significantly, but it can be an issue in rural areas or
areas with large lots.
hope this clarifies the issue, but please let me know if any other information is needed.
Anne Claflin
Environmental Analysis and Outcomes Division
Minnesota Pollution Control Agency
651-282-6672
anne.claflin@,state.mn.us
-----Original Message----- .
From: Heine, Corrine A. [mailto:cheine@kennedy-graven.com]
Sent: Wednesday, July 23, 2008 8:26 AM
To: Anne.Claflin@state.mn.us
Cc: Steve Devich
Subject: Clarification regarding city regulation of noise levels
~~ ~~"
Ann,
This follows my voicemail to you of today. I am asking for clarification regarding the
MPCA's position on local regulation of noise levels. As you know, Minn. Stat. sec.
116.07, subd. 2 provides, in part, that "no local governing unit shall set standards
describing the maximum levels of sound pressure which are more stringent than those
set by the Pollution Control Agency." Richfield's city code includes the following
provisions:
930.05. Receivinq land use. standards. Subdivision 1. Maximum noise levels by
receiving land use district. No person shall operate or cause to be operated or permit
any source of noise in such a manner as to create a noise level exceeding the limits set
in Table I for the receiving land use category specified therein when measured at the
property line of the receiving use which is closest to the source.
Table
L 10 Noise Limits by Receivinq Zoning Districts
Zoning Districts Da ime Nighttime
Industrial (i) 70 dBA 70 dBA
General Commercial (C-2) 65 dBA 65 dBA
Neighborhood Commercial (C-2) 60 dBA 60 dBA
Residential (R, MR) 60 dBA 50 dBA
930.11. Air circulation devices. No person may permanently install or place any sound
emitting air circulation device or other mechanical equipment, except a window air
conditioning unit, in any outdoor location without first obtaining a permit for the
installation. The sound level produced by any wiridow unit and by any existing air
circulating or mechanical device shall be reduced in the manner required by the director
of community development. Such requirements may include, but are not
limited to, relocation of the device if the noise results or contributes to sound levels in
excess of those specified in Table I.
Based on my reading of the statute and conversations that you and I have had, it is my
understanding that the City may not adopt regulations that establish L10 or L50 noise
limits that are more stringent than those set forth at Minn. Rules 7030.0040; however,
the City may regulate noise in other ways that do not establish different L10 or L50
maximum sound pressure levels. E.g., the city could prohibit the operation of specified
equipment during certain hours or could require that certain equipment be placed a
specified distance from a property line. I have recommended that the city amend
section 930.05 above so that the stated noise limits would be identical to the limits in
7030.0400.
Two of my council members have stated, however, that based on conversations they
had with you, they understood that the City could regulate specific equipment (e.g., air
conditioners) by reference to maximum sound pressure levels .that are more stringent
than the state rules. Their understanding is that, because the MPCA has no rules on
5~ -~
sound pressure levels emitted by air conditioners, a city may 'regulate air conditioners
.based on the. sound pressure as measured from a property line and that the stated
sound pressure level may be more stringent than the levels in 7030.0040. I.e., they
understood that the city's regulations do not require amendment and are .permissible
under 116.07, subd. 2.
The council has requested a written response from you as to whether-the city can
regulate specific equipment by reference to L10 and L50 sound pressure levels that are
more stringent than the MPCA rules. Please call if you have any questions. A reply by
email is fine -- I don'f need a formal letter.
Corrine A. Heine
Kennedy & Graven, Chartered
470 U. S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
_ Te1:612-337-9217
Fax: 612-337-9310
AGENDA SECTION:
AGENDA ITEM #
REPORT # .
~~ STAFF REPORT
CITY COUNCIL MEETING
NOVEMBER 24, 2009
CONSENT
5B
232
REPORT PREPARED BY:
MIKE FLAHERTY, POLICE
LIEUTENANT
NAME, TITLE
DEPARTMENT DIRECTOR p
REVIEW:
REVIEWED BY CITY
MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a resolution regarding an agreement. between the State of Minnesota, acting
through its Commissioner of Public Safety, State Patrol Division and the City of Richfield,
Public Safet De artment, ertainin to O eration Ni htCAP.
I. RECOMMENDED ACTION:
By Motion: Approve the attached resolution authorizing the
acceptance of grant funds from the State of Minnesota,
Commissioner of Public Safety, State Patrol Division, to be used. for
payment of overtime for officers involved in Operation NightCAP
traffic enforcement.
II. BACKGROUND
The Minnesota State Patrol coordinates alcohol enforcement saturations with local
police departments throughout the state and has contacted the Richfield Police
Department to participate in the periodic saturations for alcohol enforcement in
coordination with the State Patrol. The State of Minnesota, Commissioner of Public
Safety, has awarded the Richfield Police Department reimbursements not #o exceed
$6,765 for overtime to participate in the NightCAP Grant Program. The contract
begins October 1, 2009 and expires September 30, 2010.
1124 NightCAP Grant
III. BASIS OF RECOMMENDATION
A. POLICY
• Minnesota State Statute 465.03 requires that the City approve a
resolution accepting the funds of the grant money.
• The state Department of Public Safety's Fiscal Administrative Office is
requiring. that the Minnesota State Patrol gets a copy of the
resolution/delegation of authority from the Richfield Police Department
stating who is authorized to sign off on the. grants allowing the
Richfield Police Department to participate in these programs.
B. CRITICAL ISSUES
• The resolution needs to be signed by the Richfield City Council,
adopting by two-thirds majority of its members.
C. FINANCIAL
• The overtime paid to the officers will come from Grant Funds.
D. LEGAL
• N/A
E. ENVIRONMENTAL CONSIDERATIONS
• N/A
IV. ALTERNATIVE RECOMMENDATION~S~
• The Council could disapprove the resolution, which would void the
agreement.
V. ATTACHMENTS '
• Resolution.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
5~--i
RESOLUTION NO.
RESOLUTION AUTHORIZING THE CITY OF RICHFIELD/POLICE TO PARTICIPATE
JOINTLY WITH THE. MINNESOTA STATE PATROL IN AN AGREEMENT WITH AND TO
RECEIVE GRANT FUNDS FROM THE STATE OF MINNSOTA, COMMISSIONER OF
PUBLIC SAFETY, TO PAY OVERTIME TO OFFICERS INVOLVED IN OPERATION
NIGHTCAP
WHEREAS, the City of Richfield/Police would like to sign a contract with the Sate
of Minnesota, acting through its Commissioner of Public Safety, State Patrol Division;. and,
WHEREAS, the City of Richfield/Police would receive grant funds not to exceed
$6,765 for saturated overtime alcohol enforcement in coordination with the Minnesota
State Patrol; and,
WHEREAS, the contract would cover saturated enforcement between October 1,
2009 through September 30, 2010.
NOW, THEREFORE, BE IT RESOLVED-that Richfield Public Safety/Police will
enter into a grant agreement with the State of Minnesota, Commissioner of Public Safety,
State Patrol for the project entitled Operation NightCAP for October 1, 2009 through
September 30, 2010.
Public Safety Director Barry Fritz, or Deputy Director Todd Sandell or Patrol
Lieutenant Mike Flaherty is hereby authorized to execute such agreements and
amendments as are necessary to implement the project on behalf of the Richfield Police
Division and to be the fiscal agent and administer the grant.
Adopted by the City Council of the City of Richfield, Minnesota this 24th day of
November, 2009.
Debbie Goettel, Mayor
ATTEST:
Nancy Gibbs, City Clerk
AGENDA SECTION: CONSENT
AGENDA ITEM # 5C
REPORT # 233
~J STAFF REPORT
CITY COUNCIL MEETING
NOVEMBER 24, 2009
REPORT PREPARED BY:
BARRY FRITZ, DIRECTOR OF PUBLIC
SAFETY/CHIEF OF POLICE
NAME, TITLE
DEPARTMENT DIRECTOR
REVIEW:
REVIEWED BY CITY
MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Approve resolution to amend agreement with Hennepin County for Police Cadet Program.
I. RECOMMENDED ACTION:
By Motion: Approve the attached Amendment #4 to previously
approved agreement with Hennepin County Department of Human
Resources and Public Health for JCPP Police Cadet Program that:
• Extends period of coverage to include January through December
of 2010, and
• Adds additional $30,000 funds for the new period, 1/1/2010-
12/31 /2010.
II. BACKGROUND
To reiterate, the Richfield Police Division accepted a grant from Hennepin County
for the Joint Community Police Partnership (JCPP) that began 5/1/2007 and was
extended through 12/31/2009. One component of the partnership is the police
cadet program. Police completed a competitive selection process and hired a
Police Cadet in accordance to the agreement.
On November 17, 2009, staff received a revised agreement that extends the "term
of the agreement" to include the period January 1 through December 31, 2010.
1124 Resolution Accepting Change to Hennepin County Agreement for Cadet Program Funds
The revised agreement also included another $30,000 (not to exceed $30,000) for
the extended period.
III. BASIS OF RECOMMENDATION
A. POLICY
• Agreement originally was for the period May 1, 2007 through
December 31, 2008, and was approved by City Council on May 8,
2007.
• A Police Cadet, Alan Salvosa, was hired on August 8, 2008. The
selection process included application review and an oral interview, a
thorough background investigation, Chief's review, and a medical
exam that included drug testing, and a psychological exam.
• The Joint Community Police Partnership (JCPP) and the Police Cadet
Program are designed to better address the diverse needs of
Richfield's diverse cultures and communities and enhance the safety
and well-being of the residents. -
B. CRITICAL ISSUES
• Amendment #4 allows the contract to be extended and must be
signed as soon as possible because the contract expires on
December 31, 2009.
• Hennepin County has asked for a certified resolution by the City of
Richfield to be sent to them by November 23, 2009. Agreement has
been verbally made to extend that deadline to November 25, 2009.
C. FINANCIAL
• Hennepin County will provide funding to accommodate the cadet's
salary, fringe benefits, testing, uniforms and equipment, tuition
assistance books, supplies and application fees not to exceed
$30,000 for 2010.
D. LEGAL
• Contract agreement with Hennepin County has been previously
approve.
E. ENVIRONMENTAL CONSIDERATIONS
• N/A
ALTERNATIVE RECOMMENDATION(S~
• Not accept the additional funds that the Public Safety Department will need
for the coming year, January 1 through December 31, 2010; however, that
would mean that a completely new contract would have to be drawn up
which would delay the funds if Amendment No. 4 is not approved.
V. ATTACHMENTS
previously approved agreement.
~ V 1. PRINCIPAL PARTIES hXPECTED AT MEETING ~
~~c-~
RESOLUTION NO.
RESOLUTION AMENDING THE PREVIOUS AGREEMENT FOR THE DEPARTMENT
OF PUBLIC SAFETY/POLICE TO ACCEPT FUNDING FROM THE HENNEPIN COUNTY
DEPARTMENT OF HUMAN SERVICES AND PUBLIC HEALTH FOR A POLICE CADET
PROGRAM
WHEREAS, the County of Hennepin, State of Minnesota, through the Hennepin
County Human Services and Public Health Department, has identified the City of Richfield
as a segment of the County that is in need of Cadet Training services; and,
WHEREAS,-the County of Hennepin has funds available and wishes to purchase
such services from the City of Richfield/Police; and,
.WHEREAS, the Public Safety Department/Police has received an amendment to
the said agreement from Hennepin County Department of Human Services and Public
Health that extends the agreement to include the year 2010 (January through December);
and,
WHEREAS, the City of Richfield/Police will provide Cadet Training services through
a cost reimbursement contract described as "training and educational opportunities in
conformance with police department rules and procedures, and will provide recruitment,
interviewing, supervision, support and training to selected cadets;" and,
WHEREAS, Richfield Public Safety/Police has agreed to the terms as set forth in
the Human Services and Public Health Department Provider Agreement and will sign such
agreement upon Council approval of this resolution; and,
WHEREAS, City Manager Steve Devich and Public Safety Director Barry Fritz are
authorized to facilitate and make available whatever is needed to carry out the terms of the
agreement; and,
WHEREAS, the agreement will now be in effect from May 1, 2007 through
December 31, 2010.
NOW, THEREFORE, BE IT RESOLVED that the City of Richfield, Public Safety
Department, will accept the provisions of the agreement and receive reimbursement as
detailed in the agreement for Cadet Training services.
Adopted by the City Council of the City of Richfield, Minnesota this 24th day of
November 2009.
Debbie Goettel, Mayor
ATTEST:
Nancy Gibbs, City Clerk
AGENDA SECTION: CONSENT
AGENDA ITEM # SD
REPORT # 234
STAFF REPORT
CITY. COUNCIL MEETING
NOVEMBER 24, 2009
REPORT PREPARED BY: JIM TOPITZHOFER, RECREATION SERVICES
DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY CITY MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a Resolution Authorizing the Submittal of a Grant Application to Hennepin
Count for Fundin the Lincoln Athletic Com lex.
L RECOMMENDED ACTION:
By Motion: Approve the attached resolution authorizing the submittal
of a grant application to Hennepin County for funding the Lincoln
Athletic Complex.
III. BACKGROUND ~
Staff has submitted the attached grant application to Hennepin County for
funding the Lincoln Athletic Complex for purposes of reducing the City's internal
loan on the project. With this application, Richfield is requesting funding in the
amount of $300,000 from the Hennepin County Youth Sports Program which if
granted, would reduce the City's internal loan from $756,740 to $516,740. The
purchase and installation of four scoreboards were included in the grant request
in the amount of $60,000.
III. BASIS OF RECOMMENDATION
A. POLICY
• The attached resolution was a requirement of the Hennepin County
Youth Sports Grant.
1124 Hennepin County Grant Resolution
B. CRITICAL ISSUES
• None
C. FINANCIAL
• If the grant request is selected by Hennepin County and the full
request of $300,000 is awarded, the City's internal loan .would be
reduced from $756,740 to $513,740. This would allow the City to pay
off the loan sooner and free up funds for other Recreation projects.
D. LEGAL
• None -
E. ENVIRONMENTAL CONSIDERATIONS
• None
IV. ALTERNATIVE RECOMMENDATION~S~
• None
V. ATTACHMENTS
• Hennepin County Youth Sports Grant Resolution
• Grant Application
VI. PRINCIPAL PARTIES EXPECTED AT
MEETING
. None
~~- I
RESOLUTION NO.
RESOLUTION AUTHORIZING THE SUBMITTAL OF
A GRANT APPLICATION TO HENNEPIN COUNTY YOUTH SPORTS PROGRAM
FOR FUNDING THE RICHFIELD LINCOLN ATHLETIC COMPLEX RENOVATION
WHEREAS, the City of Richfield (the "City") is a city located within Hennepin
County and is therefore eligible to make application for funding from the Hennepin
County Youth Sports Program; and
WHEREAS, the City supports the grant application made to Hennepin County for
funding of the Richfield Lincoln Athletic Complex Renovation as a necessary capital
improvement; and
WHEREAS, the estimate of the total cost of the project shall be $1,250,440 and
the City of Richfield is requesting $300,000 from the Hennepin County Youth Sports
Program and will assume responsibility for a match requirement of $950;440; and
WHEREAS, the City has the institutional, managerial and financial capability to
ensure adequate project administration; and
WHEREAS, the City certifies that it will comply with all applicable laws and
regulations as stated in the contract agreements.
NOW, THEREFORE BE IT RESOLVED that the City Manager is hereby
authorized to apply to the Hennepin County Youth Sports Program for this funding on
behalf of the City of Richfield and to execute such agreements as are necessary to
implement the project on behalf of the applicant.
Adopted by the City Council of the City of Richfield, Minnesota this 24th day of
November, 2009.
Debbie Goettel, Mayor
ATTEST:
Nancy Gibbs, City Clerk
~iU _' off.
Hennepin Youth Sports
Amateur Sports & Recreation
Grant Application
PROJECT
Lincoln Athletic Complex Renovation Project
SUBMITTED BY
City of Richfield
Jim Topitzhofer, Recreation Services Director
612-861-9394 (phone)
612-861-9388 (fax)
jtopitzhofer@cityofrichfield.org
~,~-3
PROJECT DESCRIPTION
The project scope includes four multipurpose ball fields ranging from 210 feet to 220 feet to center
fence (see site map). The fields are fully fenced and irrigated. Each field has two fenced dugouts
with metal shade structures. A small concession building is located in the center of the complex,
equipped with restrooms and storage. Play equipment is also located in the center of the complex
with overhead shade netting to protect kids from fly balls and the sun. A 75-car parking lot is located
on the south end of the park with privacy fence and landscaping to screen the parking lot from the
homes along the park's south property line. The complex has a netted batting cage and is fully
landscaped.
PROJECT BACKGROUND
The City of Richfield leased recreational property from the Metropolitan Airport Commission for over
40 years, accommodating 13 softball and baseball fields, a golf course and community gardens. MAC
canceled this lease on October 29, 1996, because of plans to construct the North-South Runway. As
a result, the City of Richfield organized a taskforce with the responsibility for devising a plan for the
replacement of the lost facilities. After a thorough study and public review process was completed,
City Council approved the replacement plan and applied for State funding. In 1999, the City received
State Capital Appropriations in the amount of $2,000,000 for the partial replacement of lost baseball
and softball fields. Phase One of the replacement plan was then completed, including reconfiguration
and improvements to the following Richfield parks and school facilities: Roosevelt (4 baseball fields),
Richfield Middle School (4 softball fields), Richfield Intermediate School (2 softball fields), Donaldson
Park (1 baseball field), and the Academy of Holy Angels (1 baseball field). The limited grant funds did
not provide for the renovation of Lincoln Athletic Complex which was then postponed to a later date
when funds became available.
A second taskforce was organized in 2003 to begin planning for Phase Two, which included
reconfiguring and improving the remaining four lost fields at Lincoln Fields Park. This facility was over
forty years old, was developed and maintained only by volunteers and in dire need of renovation. The
taskforce first completed an evaluation of all existing ball field facilities in Richfield based upon the
following criteria: safety, anticipated future demand of outdoor fields, gender equity, neighborhood
impacts, reduce maintenance costs, community pride.
The Taskforce discovered that the Richfield Girls Softball Association (RGSA) was dissatisfied with
the present facilities and demanded access to comparable facilities of programs offered by the City for
boys. The Taskforce then began focusing attention on planning improvements for Lincoln Fields with
the decision of utilizing Lincoln as a joint use facility between RGSA and Richfield Baseball (RBI).
The City hired Busch Architects on November 25, 2008 to complete a preliminary design and cost
estimates for the renovation of Lincoln Athletic Complex to accommodate both baseball and softball in
a manner that provides equitable facilities for girls and boys. Richfield City Council approved the
preliminary design. A contract was executed with Busch Architects to develop final plans and
specifications on April 14, 2009. Bids were advertised and a low bid in the amount of $972,100 was
accepted with award of contract to Ebert Construction Company on June 24, 2009. The funding
source for the project was planned in the form of an internal loan from City payable with future
proceeds of City owned liquor stores and any grants that could be obtained. Work has begun on the
site and is expected to be completed by-mid-June, 2010.
5D-y
GEOGRAPHIC LOCATION MAP
,i, Ro575' e~
~ ~
~ Richfi8id s F r ~ >t t.7,; ~~.~~~ c
~
~~rt~l ~~
~ C
_ ~ ~
a ~
/-~
-_.. . ~ ~
r
n
'. o
? O
i
;r w
~ ..
~.
', z; P a~
~ - 9y . ~ .,
--~~~
'~:m..
6J~t
7'm St VU 771h ut E'':h t
`V.M
~ W ~I
~-
m , .
,.. ~...~..,. . _ C.u. t o mr E 74tlt St
~ 7~aih 5t '.. E 79Att St
The project site is located in the Cit~r of Richfield, at 7500 Pleasant Avenue South. Car access is from the
south on Pleasant Avenue from 76 Street.
vv ~r~m st uu ~~m ~a
~ ~ ~
~
a ~:
;~~
~
,
~~
'
'.
p
: ~ ~ ~
~ '
' c
m
' is m < ' m
Cfl .
:.._ tfi an ~ N
___
_,..
t,4,' 74m 5t
L~r~o! r': ~ ~,
~ G} ~ .
i ,
~' ,
m ~.
~' ~' ~
r ,y
{
st `
_ _ ~
~, ~: _~ ..
w'7sm sc'
v~r ~~an st __ ._.~ r___
•~ ~
~ ~
n c~~ ~
~ ~ m
~ ,
~ ~~ ~ ~
~ ~, ~ n E~
«
~, ~
<
m ~ ~ ~ ~ ~'
~, ~,
~ _ .__
w ~ s~
w ~~~, st w ~~ s~
~ _ ~ ,
~'~ ~°wf2'y ..>~(-"~IP'aVGC~f~ .~iL1fEr,S .III ~3.~
-. i )
~.~ryhACll'~:~ljC ~if kj?t4<<,r: ~..__..._
i
i
~_
i
i
i
i
i
i
;o
:~
:o
:a
=o
i
_~
H i ,,, ~,,, . ~„w,,, ,,,.,,~,.,,,,u,,,. ,,,. i o; i
w
4 I I
i i i, o i
y 1, i i L~ i i
w
~~ ' Y
~_ ~ ~ l
/; ..
p6
^ 3
"1. ~ t
~.
~-~ A<
r __ _ _
'~
f ~,
1"
s
~,,
z
5
~'
i
x
U
pa
~r~/ _
ENVIRONMENTAL IMPACT STATEMENT.
The City conducted a site plan review of the project and .developed requirements related to parking,
storm water run-off, and lighting environmental factors.
Parking -Richfield's Zoning Ordinance~does not contain a specific parking requirement for ball
fields. In the case where our Ordinance does not provide sufficient parking guidance, the Planner/City
Planner applies their best judgment. It has been standard practice to refer to the American Planning
Association's (APA) Parking Standards handbook in such cases. For ball fields, the APA
recommendation ranges from 10 to 25 spaces per field; the large range is due to the differing intensity
of use based on programming and ages of players. Staff has concluded that the proposed 18.75
spaces per ball field should be sufficient given the availability of on-street parking on Pleasant Avenue
for the relatively infrequent high-attendance events.
Storm Water - a grading plan was required to show that all runoff from the site was directed to
the storm water depression located in the southwest corner of the site.
Lighting -Lighting requirements included maximum 1 fc at residential property line (or street
centerline), 0.2 fc to . 4.0 fc for parking lot, minimum uniformity ratio of 20:1.
The Richfield Planning Commission approved the attached site plan after conducting a public hearing
on April 27,"2009.
AGREEMENTS AND ARRANGEMENTS
The City of Richfield has written agreements with Richfield Girls Softball Association and Richfield
Baseball, Inc. for the use of Lincoln Fields and draft agreements for the 2010 season are attached.
5 ~ ""'~
OPERATIONS AND MAINTENANCE STATEMENTS
The City has been maintaining Lincoln Athletic Complex since the year 2000 and will be responsible
for the maintenance after the facility is renovated. Maintenance funds for the new facility are included
in the Public Works Park Division's annual operating budget (see Budget section).
Richfield Girls Softball Association and Richfield Baseball, Inc. will be responsible to clean up debris
andtrash in the immediate area of the fields and dugouts on a daily basis during the ball season and
to chalking infield foul line as needed for games and tournaments. These groups also are expected to
conduct an annual clean-up event in advance of the season. The City will be responsible for all
remaining maintenance of the facility.
COMPREHENSIVE PLAN COMPATIBILITY
The City of Richfield submitted an updated Comprehensive Guide Plan to the Metropolitan Council on
December 31, 2008. Included in the Plan was an updated Master Park Plan. The renovation of the
Lincoln Athletic Complex was included in the Master Park Plan and identified as a priority project.
ESTIMATE OF USERS
The facility will accommodate girls ages 5 to 18 and boys ages 5 to 12. Estimates of usage for the
201.0 season are provided below:
Total estimated number of irl s orts artici ants 6,048
Total estimated number of bo sorts artici ants 7,680
Total estimated dail visits b all s orts artici ants 13,728
Total estimated dail visits b all speactators 8,508
LOCAL MATCHING FUNDS
The total estimated cost of the project is $1,250,440 and is itemized in the following section.
Funding sources for the project include:
Ci of Richfield $950,440 76%
Henne in Coun Youth S orts Pro ram $300,000 24%
Total $1,250,440 100%
The City of Richfield will fund its portion of the project through the proceeds of City-owned liquor
stores. Funds accumulated to-date for the project from liquor store proceeds total $433,700 through
2009. The remaining amount of $516,740 will be funded in the form of an internal loan to be paid
back without interest over a period of five to seven years.
5~-- ~
BUDGETS
A summary of the project cost estimate follows:
Construction Base Bid with Alternatives $972,100
Soil Testin ~ $2,300
Pla E ui ment and Shade Structure $55,000
Scoreboards $76,000
Contin enc $52,270
Desi n Cost and Construction Mana ement 7% $76,840
Desi n Reimbursables $5,000
Prelimina Desi n Costs $5,300
Other Costs $5,630
Total Project Cost Estimate $1,250,440
A summary~of the Richfield Parks Maintenance Divisions 2010 Annual Operating Budget is attached.
~~~~
Fl1Nf~ GENERAL Ft1ND
DEPARTN(ENT Public Warks
Bl.iSINESS UNfT~ Park M~int~nance -14615
DETAIL EXPE[~[DITIJRES ~Y ~317S11ESS 1.~'~"'
2008: 2009 2t1U9 2f310
CLASSIFfCATlt3NS ACTUAL BUDGET REVISED S'U[3GET'
Personal Services-
6005 Full Tune: $ 450,393:- $ 47$,280 $ 435,470 $ 430,840.
6007 Seasonal:' 45,063 31,780 35,874 36;160:
6009 Overtime 7,659: 12;950 12,950 12,950.
6093 Longevity 2,535 2,24(3 2,230: 2,250;
6031 Employer Social Security ` 30,009 31.;'[30 2$,530 27,740.
6032 Employer'Medicare 7,018 7,280 6,670 6,490.
6033 Employer Pera 29,863.. 33.,240 30,354}. 31,060
6035 Medics! insurance 66,909 76,560 72,230 76,680
6036 Dentallnsurance 3,520 3,880 3,590 3,570
-6037 Term Life. 483 500 460.: 4:50'.
6038 Workers Compensafion 31,080 44,310 44;310' 48,320
6040 Long Term Disability 1,284 2,160 1,500 1,480
6051 Interdepartmental Labor 25;237 27.,790 11,'170 2,860
6054 interdepartmental Labor Credit (37,116) (39,260) (39,260) (39;260)
PersonafServices Tofa1 $ 663,937 $ 712,84(3 $ 646,070 $ 641,590
Other Services & Charges
61.:03 Professional Services -General $ 1.,576 $ 1,910 $ 1,900 $ 1;900
6201 Rents &_Leases 81.0 810 S10
6202 Data Processing Rental 2,364 2,430 2,790 3,130'.
6204 Motor Pool Operating Rental 139,178 158,060 153,320. 153,320
6205 Maintenance & Repairs 31,048 18,200 18;200 18;200'
6207 Utility Services. 94,204 114,410 114,410 118,750
6302 Corrimanications 2,929 5,130 4,130 4,130°
6303 Professional Development 4,192 4,430' 5,830 5,830
6305 Subscriptions & Memberships 138 290 290 290
6307 Insurance & Bonds 46;200 50,820 70,120 70,240
6308 Property Liability '2,730 2,730 "2,730 2,730-
6310 Taxes & Licenses 216 270 270 270
6315 Other Contractual Services 23;295 25,690 23,510 23,920
6401 Office Supplies ~ 172 240 240. 240
6402 Copy Charges 48 6Q 60 60
6403 Postage 5 20 20 20
6409 Uniforms & Clothing.. -4,788 5,210 5,290 5,210
641'0 Small Tools & Parts 1,380 1,620 1,620 1,620:
6412 Maint. & (;oust. Materials 2,175 1,960 1,960 '1,960
64.14 Other Supplies 29;433 36,590 36,590 36,590:
Other Services & Gharges Total $ '386,071 $ 430,880 $ 444,010 $ 449,220
Park Maintenance TOTAL $ '1,050,008 $ 1,143,720 $ 1,090,080 $ 1,090,810
-'t12-
5Q--lc~
PROJECT TIMELINE
Com lete Prelimina Desi nand Cost Estimates Aril 1, 2009
A rove Site Plan and Conduct Public Hearin Aril 14, 2009
Com lete Plans and S ecifications and advertise for Bids Ma 15, 2009
Bid O ,enin June 11, 2009
A rove Construction Contract June 24, 2009
Be in Construction Au ust 1, 2009
Com lete Construction June 10, 2010
Grand O enin and Be in Use June 13, 2010
AGENDA SECTION: CONSENT
AGENDA ITEM # 5E
REPORT # 235
~~' STAFF REPORT
CITY COUNCIL MEETING
NOVEMSER 24, 2009
REPORT PREPARED BY:
DEPARTMENT DIRECTOR
REVIEW:
.REVIEWED BY CITY
MANAGER:
CHRIS REGIS, FINANCE MANAGER
NAME, TITLE
.~„-
SIGNATURE
C~
.ITEM FOR COUNCIL CONSIDERATION:
Authorization of leases for antenna and/or microwave dish space on the Penn Avenue water
tower and the Lo an Avenue water tower to Clearwire Corporation.
RECOMMENDED ACTION:
By Motion:
• Authorize the City Manager to execute a lease agreement with
Clearwire Corporation for antenna and/or microwave dish space
on the Penn Avenue water tower.
• Authorize the City Manager to execute a lease agreement with
Clearwire Corporation for antenna and/or microwave dish space
on the Logan Avenue water tower.
II. BACKGROUND
As Council members are aware, the City has previously entered into lease _
agreements with companies in the mobile telephone industry. The City currently has
lease agreements with T-Mobile, Sprint and Verizon Wireless.
As the communications. industry grows and technologies improve another.market
has evolved that requires space for antennas and/or microwave dishes. As an
example, the City entered into a lease agreement in October 2009 with TTM
Corporation, which provides and operates a utility service, specifically T1 lines for
telecommunications carriers.
Accordingly, the City has been in discussion with Clearwire Corporation to locate
antennas and/or microwave dishes on the Penn Avenue and Logan Avenue water
1124LeaseAgreements
towers. Clearwire provides high-speed wireless broadband services to consumers
and business along with high speed Internet phone services.
After considerable discussion, Clearwire Corporation and the .City have come to
tentative approval of lease agreements for the Penn water tower and Logan water
tower, .including plans for the ground structures required to support the antenna
and/or microwave equipment. The major terms of the leases, which follow very
closely a model lease developed by the League of Minnesota Cities, are as follows.
1. The leases are to begin on December 31, 2009 or the start of construction,
whichever is earlier, pending approval of other agencies such as the .FCC and
will end on December 31, 2014. The term of the lease. may be extended for
three additional five-year periods.
2. The leases for the tower antenna space shall be $22,880 per each location for.
the initial year and be increased annually by four percent or an~amount equal to
the CPI, whichever is greater, over the previous year's annualized rent.
However, 2009 will be prorated for the period beginning on December 31, 2009
or the start of construction, whichever is earlier. -
3. The facilities that would be needed by Clearwire Coporation to provide support
service to the antenna mountings would be incorporated into a fenced area
under the existing water towers and would be secured from public access..
III. BASIS OF RECOMMENDATION
A. POLICY
• The antenna and/or microwave equipment on the water towers will not
cause any problems or interference with the communications of the
City.
• The leases, in their entirety; provides for many favorable provisions
and protections for the City of Richfield, and in most respects either
equals or exceeds the standards set forth in the League of Minnesota
Cities' model lease.
• Clearwire Corporation has agreed to the terms of the lease
agreements.
B. CRITICAL ISSUES
• Staff is requesting approval of both leases at the November 24, 2009
City Council meeting so that Clearwire Corporation may begin activity
in conjunction with establishing the antenna and microwave spaces
and the support structures needed to accompany it.
C. FINANCIAL
• The $22,880 annual lease payment per each lease is a fair amount
- and is commensurate with what Richfield and other cities are getting
for similar antenna facilities in the metro area.
D. LEGAL
• The lease documents have been reviewed and approved by the City
Attorney's Office.
E. ENVIRONMENTAL CONSIDERATIONS
• N/A
IV. ALTERNATIVE RECOMMENDATION(S~
• The City Council could defer action on this item to a future meeting.
V. ATTACHMENTS
• Lease Agreements
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
~• Justin Bannwarth, FHMC Corporation.
~~
SITE LEASE AGREEMENT
THIS SITE LEASE AGREEMENT ("Lease"), made this day of , 2009
between the City of Richfield ("Landlord") and Clearwire Corporation, a limited liability
company ("Tenant").
For good and valuable consideration, the parties agree as follows:
1. Leased Premises. Subject to the terms and conditions of this Lease, Landlord
hereby leases to Tenant and Tenant leases from Landlord a portion of Landlord's
property, located at 6355 Penn Avenue South, County of Hennepin, State of Minnesota,
legally described in Exhibit A attached hereto, consisting of ground space for an
equipment shelter, subject to any and all existing easements, and that portion of the
Water Tower ("Structure") as more particularly shown in Exhibit B attached hereto
("Leased Premises"). This Lease permits use of the Structure for attaching and locating
directional Antennas and/or microwave dishes, connecting cables and appurtenances,
the exact location of each to be reasonably approved by Landlord, together with
appurtenant easements and access rights. Tenant is solely responsible for evaluating
the suitability of the Leased Premises for its purposes.
2. Rent.
(a) Amount, adjustments. As consideration for this lease, Tenants shall pay
Landlord an annual rent in the amount of twenty two thousand dollars ($22,880.00) for
the initial year. Said lease payment shall be increased each year on January 1 by the
greater of: 1) 4% of the previous year's annualized rent or 2) by an amount equal to the
increase in the Consumer Price Index (CPI) from the previous year. The CPI shall
mean the Consumer Price Index for all Urban Consumers, All Cities as published by the
United States Department of Labor Statistics or if there shall be no successor index,
such comparable index as mutually agreed upon by the parties.
(b) Time of Payment, Taxes. Landlord shall communicate all rental increases
to the Tenant in writing no later than thirty-one days (31) prior to January 1 of each year.
The annual rental for the coming year shall be paid no later than December 31. The
first year, the rental shall be prorated through December 31 and shall be paid to
Landlord in full at the time Lease is executed. If the Tenant does not meet the
requirements referenced in Subparagraph 3(a) below, and Tenant has diligently
pursued such requirements, Landlord shall refund the Tenant rental payment made at
the time of Lease execution and this Lease shall terminate. In addition to the annual
rental, Tenant agrees to timely pay its prorata share of any taxes or payment in lieu of
taxes required as a result of this Lease.
I~ ~ o~.
3. Governmental Approval Contingency.
(a) Tenant Application. Tenant's right to use the Leased Premises is
expressly made contingent upon its obtaining all the certificates, permits, zoning and
other approvals that may be required by any federal, state, or local authority. This shall
include the engineering study specified in Subparagraph 3(b) below on the Structure to
be conducted at Tenant's expense. Subject to Landlord's rights under its police powers,
Landlord shall cooperate with Tenant in its efforts to obtain and retain such approvals
and shall take no action which would adversely affect the status of the Leased Premises
with respect to the Tenant's proposed use thereof.
(b) Interference Study. Before obtaining a building permit, Tenant must pay
for the reasonable cost of (i) radio frequency interference study carried out by an
independent and qualified professional selected by the Landlord showing that Tenant's
intended use will not interfere with existing communications facilities and (ii) an
engineering study showing that the Structure is able to support the Tenant's Facilities,
as defined in Subparagraph 5(b), without prejudice to the City's use of the Structure. If
the study finds that there is a potential for interference that cannot be reasonably
remedied or for prejudice to the Structure, Landlord may terminate this Lease.
immediately and refund the initial rental to Tenant after payment to Landlord for the cost
of the study.
(c) Non-approval. In the event that any application necessary under
Subparagraph 3(a) above is finally rejected or any certificate, permit, license, or
approval issued to Tenant is canceled, expires, lapses, or is otherwise withdrawn or
terminated by governmental authority so that Tenant, in is sole discretion, will be unable
to use the Leased Premises for its intended purposes, Tenant shall have the right to
terminate this Lease and be reimbursed for the rental payment if made pursuant to
Subparagraph 2(b) above. Notice of Tenant's exercise of its right to terminate shall be
given to Landlord in writing by certified mail, return receipt requested, and shall be
effective upon receipt of such notice by Landlord as evidenced by-the return receipt.
4. Term and Renewals. The "Initial Term" of this Lease shall commence on
2009 ("Effective Date") and end on December 31 of the fifth calendar year
(December 31, 2014 of the Lease. Subject to the terms and conditions of this Lease,
Tenant may extend the term of this Lease for three (3) additional five (5) year renewal
periods ("Renewal Term") commencing on January 1 following the expiration date of the
Initial Term or of any subsequent Renewal Term. Tenant shall be deemed to have
elected to extend the term for each Renewal Term unless Tenant sends written notice
to Landlord of Tenant's intention not to extend at least 90 days prior to each Renewal
Term, Initial Term or any second or third Renewal Term, such notice provided in
accordance with Paragraph 19 of the Lease.
2
~~
5. Tenant's Use.
(a) User Priority. Tenant agrees that the following priorities of use, in
descending order, shall apply in the event of communication interference or other
conflict while this Lease is in effect, and Tenant's use shall be subordinate accordingly:
1. Landlord;
2. Public safety agencies, including law enforcement, fire, and ambulance
services, that are not part of the Landlord;
3. Other governmental agencies where use is not related to public safety;
4. Government-regulated entities whose Antennas and/or microwave dishes
offer a service to the general public for a fee, in a manner similar to a public
utility, such as long distance, cellular telephone, or data transmission, not
including radio or television broadcasters, whose lease precedes this
Agreement.
(b) Purposes. The Tenant shall have the exclusive use of the Leased
Premises only for the purpose of installing, maintaining, and operating aLandlord-
approved communications Antennas and/or microwave dishes facility, equipment,
cabinets and an accessory building, and uses incidental thereto for providing radio and
wireless telecommunication services which Tenant is legally authorized to provide to the
public. Tenant's use of any other portion of Landlord's property (including that portion of
the water tower not included in the definition of "Leased Premises" in Section 1 hereof)
shall be non-exclusive and Landlord specifically reserves the right to allow such other
property to be used by other parties and to make additions, deletions, or modifications
to its own facilities on such property. Tenant's communications Antennas and/or
microwave dishes facility shall consist of Antennas and/or microwave dishes at a
Landlord-approved location, along with cable and appurtenances connected to an
accessory, building or cabinet located on the Leased Premises ("Antennas and/or
microwave dishes Facilities"). Tenant shall comply with all applicable ordinances,
statutes and regulations of local, state and federal government agencies.
(c) Construction. Tenant may erect and operate an Antennas and/or
microwave dishes array in accordance with its submitted application attached as Exhibit
B and Landlord's requirements for mounting the Antennas and/or microwave dishes and
brackets for cable runs. Prior to activation of the Antennas and/or microwave dishes
Facilities, Tenant shall notify Landlord that installation/construction is substantially
complete and provide as-builts. Within seven (7) days, Landlord may inspect Tenant's
work, at Tenant's expense, to verify completion in accordance with this Lease, Tenant's
requirements, and the as-builts.
(d) Operation. Tenant shall have the right, at its sole cost and expense, to
operate and maintain the Antennas and/or microwave dishes Facilities on the Leased
Premises in accordance with good engineering practices, with all applicable FCC rules
and regulations. Tenant's installation of all Antennas and/or microwave dishes Facilities
shall be done according to plans approved by Landlord, which approval shall not be
unreasonably withheld. Any damage done to the Leased Premises or other Landlord
property including the Structure during installation or during operations shall be repaired
at Tenant's expense within 30 days after notification of damage. The Antennas and/or
3
~~- ~1
microwave dishes Facilities shall remain the exclusive property of the Tenant, unless
otherwise provided in this Lease.
(e) Tenant Maintenance. Tenant shall, at its own expense, maintain the
Antennas and/or microwave dishes Facilities and any property on the Leased Premises
or attached to the Structure in a safe condition and in good repair and in a manner that
does not conflict with use by Landlord. Any modifications to the Leased Premises for
Tenant's benefit shall be at the Tenant's expense. Tenant's Antennas and/or
microwave dishes Facilities shall, at all times and at Tenant's expense, be painted and
maintained in the same color(s) as the immediate background of the Structure or other
color as selected by the Public Works Director. In lieu of painting, Landlord may require
that any coaxial cable or other connecting cables with exterior exposure on the
Structure be .provided in manufactured colors matching the immediate background.
(f) Landlord Maintenance. Tenant shall remove the Antennas and/or
microwave dishes Facilities at Tenant's cost, -upon reasonable notice, to permit
maintenance, repair, repainting, restoration or other activity in relation to the Structure
or Leased Premises provided, however, that Landlord may, at its discretion, permit
Tenant to cover or otherwise secure and protect the Antennas and/or microwave dishes
Facilities and other equipment in place. Except in the case of an emergency, Landlord
shall give Tenant thirty (30) days notice of repair, repainting or restoration. In case of
an emergency, Landlord may remove Tenant's Antennas and/or microwave dishes
Facilities but shall notify Tenant by telephone within a reasonable time. If use of the
Antennas and/or microwave dishes facilities is interrupted, Tenant may maintain mobile
cellular equipment on the Leased Premises to the extent feasible. Any additional
expense of maintaining the Structure or Leased Premises or other Landlord property
caused by the Antennas and/or microwave dishes Facilities shall be paid promptly by
Tenant upon Landlord's notice to Tenant of such additional cost.
(g) Additional or Replacement Antennas and/or microwave dishes. Landlord
must consent to any installation of additional Antennas and/or microwave dishes.
Tenant shall notify Landlord in writing of any request to increase the number of
Antennas and/or microwave dishes. Upon such request, Landlord may retain a
qualified professional to evaluate whether: (i) additional Antennas and/or microwave
dishes will interfere with existing or proposed Antennas and/or microwave dishes of
higher priority and (ii) the Structure can structurally support the additional Antennas
and/or microwave dishes. The Tenant shall reimburse the Landlord's cost for
evaluation within 30 days of receipt of an invoice. If Landlord consents, the parties will
negotiate the amount of additional rental for the Antennas and/or microwave dishes.
Before the Tenant may replace the Antennas and/or microwave dishes Facilities,
Tenant must notify Landlord. Tenant shall submit to Landlord a detailed proposal for
any such replacement facilities and any other information reasonably requested by
Landlord of such requested update or replacement, including but not limited to a
technical study, carried out at Tenant's expense. Landlord may not unreasonably
withhold approval of the update or replacement.
(h) Drawings. Tenant shall provide Landlord with as-built drawings of the
equipment and improvements installed on the Leased Premises, which show the actual
location of all Antennas and/or microwave dishes Facilities. Said drawings shall be
4
5 C-.~
accompanied by a complete and detailed inventory of all equipment, personal property,
and Antennas and/or microwave dishes Facilities actually placed on the Leased
Premises.
(i) No Interference. Tenant shall, at its own expense, maintain any
equipment on or attached to the Leased Premises in a safe condition, in good repair
and in a manner suitable to Landlord so as not to conflict with the use of the
surrounding premises by Landlord. Tenant shall not unreasonably interfere with the
operations of any prior tenant using the Structure and shall not interfere with the
working use of the water storage facilities thereon or to be placed thereon by Landlord.
Q) Access. Tenant, at all times during this Lease, and with the approval of
Landlord shall have access to the Leased Premises in order to install, operate, and
maintain its Antennas and/or microwave dishes Facilities. Tenant shall request access
to the Structure twenty-four (24) hours in advance, except in an emergency, and
Landlord's' approval thereof shall not be unreasonably withheld or delayed. In the event
it is necessary for Tenant to have access to the Structure at some time other than the
normal working hours of Landlord, Landlord may charge Tenant for whatever
reasonable expense, including employees' wages that Landlord incurs in providing such
access to Tenant.
(k) Payment of Utilities. Tenant shall separately meter charges for the
consumption of electricity and other utilities associated with its use of the Leased
Premises and shall promptly pay all costs associated therewith.
6. Emergency Facilities. In the event of a natural or man-made disaster, in order
to protect the health, welfare, and safety of the community, Tenant may erect additional
Antennas and/or microwave dishes Facilities and install additional equipment on a
temporary basis on the Leased Premises to assure continuation of service. Such
temporary operation shall not exceed 90 days unless Tenant obtains written approval
from the Landlord.
7. Additional Maintenance Expenses. Upon notice from Landlord, Tenant shall
promptly pay to Landlord all additional Landlord expenses incurred in maintaining the
Leased Premises, including painting or other maintenance of the Structure that are
caused by Tenant's occupancy of the Leased Premises.
8. Additional Buildings. Tenant acknowledges that Landlord may permit
additional buildings to be constructed on the property described in Exhibit A. At such
time as this may occur, Tenant will permit said buildings to be placed immediately
adjacent to Tenant's building and will allow "attachments" to its building so as to give the
appearance that all buildings are a connected facility. Said attachments will be made at
no cost to Tenant and will not compromise the structural integrity of Tenant's building.
9. Defense and Indemnification.
(a) General. Tenant agrees to defend, indemnify and hold harmless Landlord
and its elected officials, officers, employees, agents, and representatives from and
5
~~~ ~P
against any and all claims, costs, losses, expenses, demands, actions, or causes of
action, including reasonable attorneys' fees and other costs and expenses of litigation,
which may be asserted against or incurred by Landlord or for which Landlord may be
liable in the performance of this Lease, except those which arise solely from the
negligence, willful misconduct, or other fault of Landlord; provided, however, Tenant
shall also defend all matters arising out of Landlord's inspection or permit issuing
actions or inactions. Tenant shall defend all claims arising out of the installation,
operation, use, maintenance, repair, removal, or presence of Tenant's Antennas and/or
microwave dishes Facilities, equipment and related facilities on the Leased Premises.
Nothing herein shall be deemed a waiver by Landlord of the limitations on liability set
forth in Minnesota Statutes, Chapter 466.
(b) Hazardous Materials. Without limiting the scope of Subparagraph 9(a)
above, Tenant will be solely responsible for and will defend, indemnify, and hold
Landlord, its agents, and employees harmless from and against any and all claims,
costs, and liabilities, including attorney's fees and costs, arising out of or in connection
with the cleanup or restoration of the Leased Premises associated with the Tenant's use
of Hazardous Materials. For purposes of this Lease, "Hazardous Materials" shall be
interpreted broadly and specifically includes, without limitation, asbestos, petroleum,
fuel, batteries, PCBs, or any hazardous substance, waste, or materials as defined in
any federal, state or local environmental or safety law or regulations including, but not
limited to, CERCLA, and the Clean Water Act.
(c) Tenant's Warranty. Tenant represents and warrants that its use of the
Leased Premises will not generate and Tenant will not store or dispose of on the
Leased Premises, nor transport to or over the Leased Premises, any Hazardous
Materials, unless Tenant specifically informs Landlord thereof in writing twenty four
hours prior to such storage, disposal or transport, or otherwise as soon as Tenant
becomes aware of the existence of Hazardous Materials on the Leased Premises.
The obligations of this Paragraph 9 shall survive the expiration or other
termination of this Lease.
10. Insurance.
(a) Workers' Compensation. The Tenant must maintain Workers'
Compensation insurance in compliance with all applicable statutes. The policy shall
also provide Employer's Liability coverage with limits of not less than $500,000 Bodily
Injury each accident, $500,000 Bodily Injury by disease, policy limit, and $500,000
Bodily Injury by disease, each employee.
(b) General Liability. The Tenant must maintain an occurrence form
comprehensive general liability coverage. Such coverage shall include, but not be
limited to, bodily injury, property damage -broad form, and personal injury, for the
hazards of Premises/Operation, broad form, contractual, independent contractors, and
products/completed operations.
The Tenant must maintain aforementioned comprehensive general liability
coverage with limits of liability not less than $5,000,000 each occurrence; $5,000,000
6
~~ ~~
personal and advertising injury; $5,000,000 general aggregate, and $5,000,000
products and completed operations aggregate. These limits may be satisfied by the
comprehensive general liability coverage or in combination with an umbrella or excess
liability policy, provided coverage afforded by the umbrella or excess policy are no less
than the underlying comprehensive general liability coverages.
(c) Automobile Liability. The Tenant must carry Automobile Liability
coverage. Coverage shall afford total liability limits for Bodily Injury Liability and
Property Damage Liability in the amount of $5,000,000 per accident. The liability limits
may be afforded under the Commercial Policy, or in combination with an Umbrella or
Excess Liability Policy provided coverage of ridges afforded by the Umbrella Excess
Policy are no less than the underlying Commercial Auto Liability Coverage.
Coverage shall be provided for Bodily Injury and Property Damage for the
ownership, use, maintenance or operation of all owned, non-owned and hired
automobiles.
The Commercial Automobile Policy shall include at least statutory personal injury
.protection, uninsured motorists and underinsured motorists coverages.
(d) Tenant Property Insurance. The Tenant must keep in force for the
duration of the Lease a policy covering damages to its property at the Leased Premises.
The amount of coverage shall be sufficient to replace the damaged property, loss of use
and comply with any ordinary or law requirements.
(e) Additional Insured -Certificate of Insurance. The Tenant shall provide,
prior to tenancy, evidence of the required insurance in the form of a Certificate of
Insurance issued by a company (rated B+12 or better), licensed to do business in the
state of Minnesota, which includes all coverages required in this Paragraph 10. Tenant
will list the Landlord as an Additional Insured on the General Liability and Commercial
Automobile Liability Policies. The Certificate(s) shall also provide the coverage may not
be canceled, non-renewed, or materially changed without thirty (30) days prior written
notice to the Landlord.
11. Damage or Destruction. If the Leased Premises is destroyed or damaged,
without contributory fault of the Tenant or its agents, so as, in Tenant's judgement, to
hinder its effective use of the Antennas and/or microwave dishes Facilities, Tenant may
elect to terminate the Lease, upon thirty (30) days' written notice to Landlord. In the
event Tenant elects to terminate the Lease, Tenant shall be entitled to reimbursement
of pre-paid rent covering the period subsequent to the date of damage to or destruction
of the Leased Premises.
12. Lease Termination.
(a) Events of Termination. Except as otherwise provided herein, this Lease
may be terminated by either party upon sixty (60) days written notice to the other party
as follows:
(i) by either party upon a default of any covenant or term hereof by the
7
5E - ~
other party, which default is not cured within sixty (60) days of receipt of written
notice of default to the other party (without, however, limiting any other rights of
the parties pursuant to any other provisions hereof);
(ii) by Tenant for cause if it is unable to obtain or maintain any license,
permit or other governmental approval necessary for the construction and/or
operation of the Antennas and/or microwave dishes Facilities or Tenant's
business; ,
iii) by Tenant for cause if the Leased Premises is or becomes
unacceptable for technological reasons under the Tenant's Antennas and/or
microwave dishes Facilities, design or engineering specifications or the
communications systems to which the Antennas and/or microwave dishes
Facilities belong;
(iv) by Landlord, if its Council decides, for any reason to redevelop the
Leased Premises and/or discontinue use of the Structure for all purposes or any
purpose inconsistent with this Agreement. If Landlord decides to discontinue use
to redevelop the Leased Premises, Landlord shall provide aone-year written
notice to Tenant.
(v) by Landlord if it determines that the Structure is structurally
unsound, including, but not limited to, consideration of age of the Structure,
damage or destruction of all or part of the Structure on the Leased Premises from
any source, or factors relating to condition of the Leased Premises;
(vi) or by Landlord if it determines that a potential user with a higher
priority under Subparagraph 3(a) above cannot find another adequate location, or
the Antennas and/or microwave dishes Facilities unreasonably interfere with
another user with a higher priority, regardless of whether or not such an
interference was predicted in the initial interference study that was part of the
application process; or
(vii) by Landlord if it determines that Tenant has failed to comply with
applicable ordinances, or state or federal law, or any conditions attached to
government approvals granted thereunder, after a public hearing before the
Landlord's Council.
(b) Notice of Termination. The parties shall give notice of termination in
writing by certified mail, return receipt requested. Such notice shall be effective upon
receipt as evidenced by the return receipt. All rentals paid for the Lease prior to said
termination date shall be retained by Landlord.
(c) Tenant's Liability for Early Termination. If Tenant terminates this Lease
other than of right as provided in this Lease, Tenant shall pay to Landlord as liquidated
damages for early termination, 150% of the annual rent for the year in which Tenant
terminates unless Tenant terminates during the last year of any Term under Paragraph
4 and Tenant has paid the annual rental for that year, which shall not be refunded.
8
~-L_q
(d) Site Restoration. In the event that this Lease is terminated or not
renewed, Tenant shall have 60 days from the termination or expiration date to remove
its Antennas and/or microwave dishes Facilities, and related equipment from the
Leased Premises, repair the site and restore the surface of the Structure. Upon the
commencement of this Lease, Tenant shall provide a letter of credit, performance bond
or cash deposit in the amount of $10,000 to guarantee timely restoration of the Site
following any lease termination. In the event that Tenant's Antennas and/or microwave
dishes Facilities, and related equipment are not removed to the reasonable satisfaction
of the Landlord, they shall be deemed abandoned and become the property of the
Landlord and Tenant shall have no further rights thereto.
13. Limitation of Landlord's Liability. If Landlord terminates this Lease other than
as of right as provided in this Lease, or Landlord causes interruption of the business of
Tenant or for any other Landlord breach of this Lease, Landlord's liability for damages
to Tenant shall be limited to the actual and direct costs of equipment removal, relocation
or repair and shall specifically exclude any other recovery of damages to Tenant,
including but not limited to, value of the business of Tenant as a going concern, future
expectation of profits, loss of business or profit or related damages to Tenant.
14. Temporary Interruptions of Service. If Landlord determines that continued
operation of the Antennas and/or microwave dishes Facilities would cause or contribute
to an immediate threat to public health and/or safety (except for any issues associated
with human exposure to radio frequency omissions, which is regulated by the federal
government), Landlord may order Tenant to discontinue its operation. Tenant shall
immediately comply with such an order. Service shall be discontinued only for the
period that the immediate threat exists. If Landlord does not give prior notice to Tenant,
Landlord shall notify Tenant as soon as possible after its action and give its reason for
taking the action. Landlord shall not be liable to Tenant or any other party for any
interruption in Tenant's service or interference with Tenant's operation of its Antennas
and/or microwave dishes Facilities. If the discontinuance extends for a period greater
than three days, either consecutively or cumulatively, Tenant shall have the right to
terminate this Lease within its sole discretion.
15. Tenant Interference.
(a) With Structure. Tenant shall not interfere with Landlord's use of the
Structure and agrees to cease all such actions which unreasonably and materially
interfere with Landlord's use thereof no later than three business days after receipt of
written notice of the interference from Landlord. In the event that Tenant's cessation of
action is material to Tenant's use of the Leased Premises and such cessation frustrates
Tenant's use of the Leased Premises, within Tenant's sole discretion, Tenant shall have
the immediate right to terminate this Lease.
(b) With Higher Priority Users. If Tenant's Antennas and/or microwave dishes
Facilities cause impermissible interference with higher priority users as set forth under
Subparagraph 5(a) above or with pre-existing tenants, Tenant shall take all measures
necessary to correct and eliminate the interference. If the interference cannot be
eliminated within 48 hours after receiving Landlord's written notice of the interference,
Tenant shall immediately cease operating its Antennas and/or microwave dishes
9
.~ ~'~
Facilities and shall not reactivate operation, except intermittent operation for the
purpose of testing, until the interference has been eliminated. If the interference cannot
be eliminated within 30 days after Tenant received Landlord's written notice, Landlord
may at its option terminate this Lease immediately.
(c) Interference Study -New Occupants. Upon written notice by Landlord
that it has a bona fide request from any other party to lease an area including or in close
proximity to the Leased Premises ("Leased Premises Area"), Tenant agrees to provide
Landlord, within sixty (60) days, the radio frequencies currently in operation or to be
operated in the future of each transmitter and receiver installed and operational on the
Lease Premises at the time of such request. Landlord may then have an independent,
registered professional engineer of Landlord's choosing perform the necessary
interference studies to determine if the new applicant's frequencies will cause harmful
radio interference to Tenant. Landlord shall require the new applicant to pay for such
interference studies, unless the Landlord or other higher priority user requests the use.
In that event, the Tenant and all other tenants occupying the Leased Premises Area
shall pay for the necessary interference studies, pro rata.
(d) Interference -New Occupants. Landlord agrees that it will not grant a
future lease in the Leased Premises Area to any party who is of equal or lower priority
to Tenant, if such party's use is reasonably anticipated to interfere with Tenant's
operation of its Antennas and/or microwave dishes Facilities. Landlord agrees that it
will require any subsequent occupants of the Leased Premises Area of equal or lower
priority to Tenant to provide Tenant these same assurances against interference.
Landlord shall have the obligation to eliminate any interference with the operations of
Tenant caused by such subsequent occupants. If such interference is not eliminated,
Tenant shall have the right to terminate this Lease or seek injunctive relief against the
interfering occupant, at Tenant's expense.
16. Successors and Assigns. This Agreement shall run with the Property and shall
be binding on and inure to the benefit of the parties, their respective successors,
personal representatives and assigns. Tenant will not assign or transfer this Agreement
or sublet all or any portion of the Leased Premises without the prior written consent of
Landlord which consent will not be unreasonably withheld or delayed provided,
however, that Tenant may assign or sublet without Landlord's consent to any party
controlling, controlled by or under common control with Tenant or to any party which
acquires substantially all assets of Tenant. Except as provided above, Lessee shall
make no other assignment or transfer of this Agreement without obtaining the written
consent of Lessor, which consent shall not be unreasonably withheld.
17. Condemnation. In the event the whole of the Leased Premises is taken by
eminent domain, this Lease shall terminate as of the date title to the Leased Premises
vests in the condemning authority. In event a portion of the Leased Premises is taken
by eminent domain, either party shall have the right to terminate this Lease as of said
date of title transfer, by giving thirty (30) days' written notice to the other party. In the
event of any taking under the power of eminent domain, Tenant shall not be entitled to
any portion of the reward paid for the taking and the Landlord shall receive full amount
of such .award. Tenant hereby expressly waives any right or claim to any portion
thereof. Although all damages, whether awarded as compensation for diminution is
10
S ~- l' ~
value of the leasehold or to the fee of the Leased Premises, shall belong to Landlord,
Tenant shall have the right to claim and recover from the condemning authority, but not
from Landlord, such compensation as may be separately awarded or recoverable by
Tenant on account of any and all damage to Tenant's business and any costs or
expenses incurred by Tenant in moving/removing its equipment, personal property,
Antennas and/or microwave dishes Facilities, and leasehold improvements.
18. Enforcement and Attorneys' Fees. In the event that either party to this Lease
shall bring a claim to enforce any rights hereunder, the prevailing party, as deemed by
the arbitrator or court, including appellate courts, shall be entitled to recover costs and
reasonable attorneys' fees incurred as a result of such claim, but in no event shall such
fees and costs recoverable exceed $7,500.00.
19. >Notices. All notices hereunder must be in writing and shall be deemed validly
given if sent by certified mail, return receipt requested, addressed as follows (or any
other address that the party to be notified may have designated to the sender by like
notice):
If to Landlord, to: City of Richfield
6700 Portland Avenue South
Richfield, MN 55423
If to Tenant, to: Clearwire USA, Inc.
With a copy to: Clearwire Central, LLC
20. Authority. Each of the individuals executing this Lease on behalf of the Tenant
or the Landlord represents to the other party that such individual is authorized to do so
by requisite action of the party to this Lease.
21. Binding Effect. This Lease shall run with the Leased Premises. This Lease
shall extend to and bind the heirs, personal representatives, successors and assigns of
the parties hereto.
22. Complete Lease; Amendments. This Lease constitutes the entire agreement
and understanding of the parties and supersedes all offers, negotiations, and other
agreement of any kind. There are no representations or understandings of any kind not
set forth herein. Any modification of or amendment to this Lease must be in writing and
executed by both parties.
23. Governing Law. This Lease shall be construed in accordance with the laws of
the State of Minnesota.
11
~~--iZ
24. Severability. If any term of this Lease is found to be void or invalid, .such
invalidity shall not affect the remaining terms of this Lease, which shall continue. in full
force and effect.
25. Quiet Possession. Tenant is entitled to quiet possession of the Leased
Premises throughout the Term and any Renewal Term so long as Tenant is not in
default hereunder beyond any applicable cure period.
26. Memorandum of Lease. If requested by Tenant, Landlord will promptly execute
and deliver to Tenant a recordable Memorandum of this Agreement.
IN WITNESS WHEREOF, the parties hereto have set their hands and affixed
their respective seals the day and year first above written.
LANDLORD: City of Richfield
ey
Its Mayor
By
Its City Manager
TENANT: Clearwire Central, LLC
By:
Title:
Date: , 2009
12
~~~~~
ACKNOWLEDGMENT
STATE OF MINNESOTA )
ss.
COUNTY OF HENNEPIN )
The Foregoing instrument was acknowledged before me this day of
2009 by and ,the Mayor and City
Manager respectively of the City of Richfield, on behalf of the corporation.
Notary Public in for the State of Minnesota
County of
My Commission expires:
STATE OF )
COUNTY OF )
ACKNOWLEDGMENT
ss.
The Foregoing instrument was acknowledged before me this .
2009 by the
on behalf of the limited liability company.
Notary Public in for the State of
County of
My Commission expires:
day of
of
13
5~~~~
EXHIBIT A
The Property is legally described as follows:
The South 70 feet of the North 150 feet of the West 166 feet of the West'/4 of the
Southwest'/4 of the Northwest'/4 of Section 28, Township 28, Range 24
AND the North 80 feet of the West 166 feet of the West'/4 of the Southwest'/ of the
Northwest'/4 of Section 28, Township, Range 24
AND The North 150 feet of the following described tract:
The North 219.2 feet of the West'/ of the Southwest'/ of the Northwest'/ of Section
28, Township 28, ,Range 24, except the North 150 feet of the West 166 feet thereof.
14
~~-15
EXHIBIT B
SKETCH AND DESCRIPTION OF LEASED PREMISES SHOWN IN RELATION TO
OWNER'S PROPERTY
See Attached
15
•
0
~ ~ ~
m .~
~~ ~ ~
~ ~~ G ~~
~~
i
~4~2
!"
~~
I~
III
~
r o
m m io
s ~ ~
- -- - PENN AVE S - ~" - -
~_
y
~~
~. ~
d
ii
e
~~-~~~
~ ~
~ ~~
~. ~ ~
M ~ •i •~-1
\ o~ ~
1 \ ~~
~~ ~
m t ~ ~ ~.
~ ~
I ~ 1
~0 ~ ~ `~ - ~
~ ~__~
i A ! .
a ~ r
`~ ~ /
N \ ° ~ ~ l
~ ~$
~~ ~
~~~ ~r~~
~~~
N
a
i
~a
~St
~ m
m m$
~n z
rte ~° ~
,~; „sn
z
~ s~
s
77~~0~ry! X $ ~~ O X
~ ~~ ~
' ~~ ~~
~..
O
O
~ - ~.
~ ~~
a
~-,.,
~~
.. _. ~. 'a- . s
~ ' ~.
a••Y ~i ~~
~~.^
~~, ..
.°~_ 4 ~ * ~
t,3
rn
~ ~~
~~
~, v
m
~`i ~ ~
a
o~
~~.
~.
~' m
f, • A'~~
~~^ L
~ ~' i" +A
.~
x ~ o, ~
~.~ -+~ a
~ ~
~ ~ ~
r
~~
~ ~ ~~
~ °r
o~ ~~
.,~
~~
V
'~ ~
,~
s
f
.~;
~~ a~
o
~-~
~~ ~ ~
~ „t
~' A
A ~ '.A
~'. 1~
:.. ,~.
A.
., ¢A '
•• w~
' 11
~~
1}
~~
~~
r~~~
r
8
1
3~
~~
~~~~
m
w~µ'
o
~~~~
~~~ ~~'
~ ~~~
~~
~ ~,
~~
~` X
n
~~p
4
;~
~~'
n
~~
~~
~~
~~
~~
~~
D
~a
5~--~ 8
SITE LEASE AGREEMENT
THIS SITE LEASE AGREEMENT ("Lease"), made this day of , 2009
between the City of Richfield ("Landlord") and Clearwire Corporation, a limited liability
company ("Tenant").
For good and valuable consideration, the parties agree as follows:
1. .Leased Premises. Subject to the terms and conditions of this Lease, Landlord
hereby leases to Tenant and Tenant leases from Landlord a portion of Landlord's
:property, .located at 7401 Logan Avenue South, County of Hennepin, State of
Minnesota, legally described in Exhibit A attached hereto, consisting of ground space
for an equipment shelter, subject to any and all existing easements, and that portion of
the Water Tower ("Structure") as more particularly shown in Exhibit B attached hereto
("Leased Premises"). This Lease permits use of the Structure for attaching and locating
directional Antennas and/or microwave dishes, connecting cables and appurtenances,
the exact location of each to be reasonably approved by Landlord, together with
appurtenant easements and access rights. Tenant is solely responsible for evaluating
the suitability of the Leased Premises for its purposes.
2. Rent.
(a) Amount, adjustments. As consideration for this lease, Tenants shall pay
Landlord an annual rent in the amount of twenty two thousand dollars ($22,880.00) for
the initial year. Said lease payment shall be increased each year on January 1 by the
greater of: 1) 4% of the previous year's annualized rent or 2) by an amount equal to the
increase in the Consumer Price Index (CPI) from the previous year. The CPI shall
mean the Consumer Price Index for all Urban Consumers, All Cities as published by the
United States Department of Labor Statistics or if there shall be no successor index,
such comparable index as mutually agreed upon by the parties.
(b) Time of Payment, Taxes. Landlord shall communicate all rental increases
to the Tenant in writing no later than thirty-one days (31) prior to January 1 of each year.
The annual rental for the coming year shall be paid no later than December 31. The
first year, the rental shall be prorated through December 31 and shall be paid to
Landlord in full at the time Lease is executed. If the Tenant does~not meet the
requirements referenced in Subparagraph 3(a) below, and Tenant has diligently
pursued such requirements, Landlord shall refund the Tenant rental payment made at
the time of Lease execution and this Lease shall terminate. In addition to the annual
rental, Tenant agrees to timely pay its prorata share of any taxes or payment in lieu of
taxes required as a result of this Lease.
~~= l~'
3. ~ Governmental Approval Contingency.
(a) Tenant Application. Tenant's right to use the Leased Premises is
expressly made contingent upon its obtaining all the certificates, permits, zoning and
other approvals that may be required by any federal, state, or local authority. This shall
include the engineering study specified in Subparagraph 3(b) below on the Structure to
be conducted at Tenant's expense. Subject to Landlord's rights under its police powers,
Landlord shall cooperate with Tenant in its efforts to obtain and retain such approvals
and shall take no action which would adversely affect the status of the Leased Premises
with respect to the Tenant's proposed use thereof.
(b) Interference Study. Before obtaining a building permit, Tenant must pay
for the reasonable cost of (i) radio frequency interference study carried out by an
independent and qualified professional selected by the Landlord showing that Tenant's
intended use will not interfere with existing communications facilities and (ii) an
engineering study showing that the Structure is able to support the Tenant's Facilities,
as defined in Subparagraph 5(b), without prejudice to the City's use of the Structure. If
the study finds that there is a potential for interference that cannot be reasonably
remedied or for prejudice to the Structure, Landlord may terminate this Lease
immediately and refund the initial rental to Tenant after payment to Landlord for the cost
of the study.
(c) Non-approval. In the event that any application necessary under
Subparagraph 3(a) above is finally rejected or any certificate, permit, license, or
approval issued to Tenant is canceled, expires, lapses, or is otherwise withdrawn or
terminated by governmental authority so that Tenant, in is sole discretion, will be unable
to use the Leased Premises for its intended purposes, Tenant shall have the right to
terminate this Lease and be reimbursed for the rental payment if made pursuant to
Subparagraph 2(b) above. Notice of Tenant's exercise of its right to terminate shall be
given to Landlord in writing by certified mail, return receipt requested, and shall be
effective upon receipt of such notice by Landlord as evidenced by the return receipt.
4. Term and Renewals. The "Initial Term" of this Lease shall commence on
2009 ("Effective Date") and end on December 31 of the fifth calendar year
(December 31, 2014 of the Lease. Subject to the terms and conditions of this Lease,
Tenant may extend the term of this Lease for three (3) additional five (5) year renewal
periods ("Renewal Term") commencing on January 1 following the expiration date of the
Initial Term or of any subsequent Renewal Term. Tenant shall be deemed to have
elected to extend the term for each Renewal Term unless Tenant sends written notice
to Landlord of Tenant's intention not to extend at least 90 days prior to each Renewal
Term, Initial Term or any second or third Renewal Term, such notice provided in
accordance with Paragraph 19 of the Lease.
2
~~~~
5. Tenant's Use.
(a) User Priority. Tenant agrees that the following priorities of use, in
descending order, shall apply in the event of communication interference or other
conflict while this Lease is in effect, and Tenant's use shall be subordinate accordingly:
1. Landlord;
2. Public safety agencies, including law enforcement, fire, and ambulance
services, that are not part of the Landlord;
3. Other governmental agencies where use is not related to public safety;
4. Government-regulated entities whose Antennas and/or microwave dishes
offer a service to the general public for a fee, in a manner similar to a public
utility, such as long distance, cellular telephone, or data transmission, not
including radio or television broadcasters, whose lease precedes this
Agreement.
(b) Purposes. The Tenant shall have the exclusive use of the Leased
Premises only for the purpose of installing, maintaining, and operating a Landlord-
approved communications Antennas and/or microwave dishes facility, equipment,
cabinets and an accessory building, and uses incidental thereto for providing radio and
wireless telecommunication services which Tenant is legally authorized to provide to the
public. Tenant's use of any other portion of Landlord's property (including that portion of
the water tower not included in the definition of "Leased Premises" in Section 1 hereof)
shall be non-exclusive and Landlord specifically reserves the right to allow such other
property to be used by other parties and to make additions, deletions, or modifications
to its own facilities on such property. Tenant's communications Antennas and/or
microwave dishes facility shall consist of Antennas and/or microwave dishes at a
Landlord-approved location, along with cable and appurtenances connected to an
accessory building or cabinet located on the Leased Premises ("Antennas and/or
microwave dishes Facilities"). Tenant shall comply with all applicable ordinances,
statutes and regulations of local, state and federal government agencies.
(c) Construction. Tenant may erect and operate an Antennas and/or
microwave dishes array in accordance with its submitted application attached as Exhibit
B and Landlord's requirements for mounting the Antennas and/or microwave dishes and
brackets for cable runs. Prior to activation of the Antennas and/or microwave dishes
Facilities, Tenant shall notify Landlord that installation/construction is substantially
complete and provide as-builts. Within seven (7) days, Landlord may inspect Tenant's
work, at Tenant's expense, to verify completion in accordance with this Lease, Tenant's
requirements, and the as-builts.
(d) Operation. Tenant shall have the right, at its sole cost and expense, to
operate and maintain the Antennas and/or microwave dishes Facilities on the Leased
Premises in accordance with good engineering practices, with all applicable FCC rules
and regulations. Tenant's installation of all Antennas and/or microwave dishes Facilities
shall be done according to plans approved by Landlord, which approval shall not be
unreasonably withheld. Any damage done to the Leased Premises or other Landlord
property including the Structure during installation or during operations shall be repaired
at Tenant's expense within 30 days after notification of damage. The Antennas and/or
3
^~
microwave dishes Facilities shall remain the exclusive property of the Tenant, unless
otherwise provided in this Lease.
(e) Tenant Maintenance. Tenant shall, at its own expense, maintain the
Antennas and/or microwave dishes Facilities and any property on the Leased Premises
or attached to the Structure in a safe condition and in good repair and in a manner that
does not conflict with use by Landlord. Any modifications to the Leased Premises for
Tenant's benefit shall be at the Tenant's expense. Tenant's Antennas and/or
microwave dishes Facilities shall, at all times and at Tenant's expense, be painted and
maintained in the same color(s) as the immediate background of the Structure or other
color as selected by the Public Works Director. In lieu of painting, Landlord may require
that any coaxial cable or other connecting cables with exterior exposure on the
Structure be provided in manufactured colors matching the immediate background.
(f) Landlord Maintenance. Tenant shall remove the Antennas and/or
microwave dishes Facilities at Tenant's cost, upon reasonable notice, to permit
maintenance, repair, repainting, restoration or other activity in relation to the Structure
or Leased Premises .provided, however, that Landlord may, at its discretion, permit
Tenant to cover or otherwise secure and protect the Antennas and/or microwave dishes
Facilities and other equipment in place. Except in the case of an emergency, Landlord
shall give Tenant thirty (30) days notice of repair, repainting or restoration. In case of
an emergency, Landlord may remove Tenant's Antennas and/or microwave dishes
Facilities but shall notify Tenant by telephone within a reasonable time. If use of the
Antennas and/or microwave dishes facilities is interrupted, Tenant may maintain mobile
cellular equipment on the Leased Premises to the extent feasible. Any additional
expense of maintaining the Structure or Leased Premises or other Landlord property
caused by the Antennas and/or microwave dishes Facilities shall be paid promptly by
Tenant upon Landlord's notice to Tenant of such additional cost.
(g) Additional or Replacement Antennas and/or microwave dishes. Landlord
must consent to any installation of additional Antennas and/or microwave dishes.
Tenant shall notify Landlord in writing of any request to increase the number of
Antennas and/or microwave dishes. Upon such request, Landlord may retain a
qualified professional to evaluate whether: (i) additional Antennas and/or microwave
dishes will interfere with existing or proposed Antennas and/or microwave dishes of
higher priority and (ii) the Structure can structurally support the additional Antennas
and/or microwave dishes. The Tenant shall reimburse the Landlord's cost for
evaluation within 30 days of receipt of an invoice. If Landlord consents, the parties will
negotiate the amount of additional rental for the Antennas and/or microwave dishes.
Before the Tenant may replace the Antennas and/or microwave dishes Facilities,
Tenant must notify Landlord. Tenant shall submit to Landlord a detailed proposal for
any such replacement facilities and any other information reasonably requested by
Landlord of such requested update or replacement, including but not limited to a
technical study, carried out at Tenant's expense. Landlord may not unreasonably
withhold approval of the update or replacement.
(h) Drawings. Tenant shall provide Landlord with as-built drawings of the
equipment and improvements installed on the Leased Premises, which show the actual
location of all Antennas and/or microwave dishes Facilities. Said drawings shall be
4
5~-ate
accompanied by a complete and detailed inventory of all equipment, personal property,
and Antennas and/or microwave dishes Facilities actually placed on the Leased
Premises.
(i) No Interference. Tenant shall, at its own expense, maintain any
equipment on or attached to the Leased Premises in a safe condition, in good repair
and in a manner suitable to Landlord so as not to conflict with the use of the
surrounding premises by Landlord. Tenant shall not unreasonably interfere with the
operations of any prior tenant using the Structure and shall not interfere with the
working use of the water storage facilities thereon or to be placed thereon by Landlord.
(j) Access. Tenant, at all times during this Lease., and with the approval of
Landlord shall have access to the Leased Premises in order to install, operate, and
maintain its Antennas and/or microwave dishes Facilities. Tenant shall request access
to the Structure twenty-four (24) hours in advance, except in an emergency, and
Landlord's' approval thereof shall not be unreasonably withheld or delayed. In the event
it is necessary for Tenant to have access to the Structure at some time other than the
normal working hours of Landlord, Landlord may charge Tenant for whatever
reasonable expense, including employees' wages that Landlord incurs in providing such
access to Tenant.
(k) Payment of Utilities. Tenant shall separately meter charges for the
consumption of electricity and other utilities associated with its use of the Leased
Premises and shall promptly pay all costs associated therewith.
6. Emergency Facilities. In the event of a natural or man-made disaster, in order
to protect the health, welfare, and safety of the community, Tenant may erect additional
Antennas and/or microwave dishes Facilities and install additional equipment on a
temporary basis on the Leased Premises to assure continuation of service. Such
temporary operation shall not exceed 90 days unless Tenant obtains written approval
from the Landlord.
7. Additional Maintenance Expenses. Upon notice from Landlord, Tenant shall
promptly pay to Landlord all additional Landlord expenses incurred in maintaining the
Leased Premises, including painting or other maintenance of the Structure that are
caused by Tenant's occupancy of the Leased Premises.
8. Additional Buildings. Tenant acknowledges that Landlord may permit
additional buildings to be constructed on the property described in Exhibit A. At such
time as this may occur, Tenant will permit said buildings to be placed immediately
adjacent to Tenant's building and will allow "attachments" to its building so as to give the
appearance that all buildings are a connected facility. Said attachments will be made at
no cost to Tenant and will not compromise the structural integrity of Tenant's building.
9. Defense and Indemnification.
(a) General. Tenant agrees to defend, indemnify and hold harmless Landlord
and its elected officials, officers, employees, agents, and representatives from and
5
~~ a~
against any and all claims, costs, losses, expenses, demands, actions, or causes of
action, including reasonable attorneys' fees and other costs. and expenses of litigation,
which may be asserted against or incurred by Landlord or for which Landlord may be
liable in the performance of this Lease, except those which arise solely from the
negligence, willful misconduct, or other fault of Landlord; provided, however, Tenant
shall also defend all matters arising out of Landlord's inspection or permit issuing
actions or inactions. Tenant shall defend all claims arising out of the installation,
operation, use, maintenance, repair, removal, or presence of Tenant's Antennas and/or
microwave dishes Facilities, equipment and related facilities on the Leased Premises.
Nothing herein shall be deemed a waiver by Landlord of the limitations on liability set
forth in Minnesota Statutes, Chapter 466.
(b) .Hazardous Materials. Without limiting the scope of Subparagraph 9(a)
above, Tenant will be solely responsible for and will defend, indemnify, and hold
Landlord, its agents, and employees harmless from and against any and all claims,
costs, and liabilities, including attorney's fees and costs, arising out of or in connection
with the cleanup or restoration of the Leased Premises associated with the Tenant's use
of Hazardous Materials. For purposes of this Lease, "Hazardous Materials" shall be
interpreted broadly and specifically includes, without limitation, asbestos, petroleum,
fuel, batteries, PCBs, or any hazardous substance, waste, or materials as defined in
any federal, state or local environmental or safety law or regulations including, but not
limited to, CERCLA, and the Clean Water Act.
(c) Tenant's Warranty. Tenant represents and warrants that its use of the
Leased Premises will not generate and Tenant will not store or dispose of on the
Leased Premises, nor transport to or over the Leased Premises, any Hazardous
Materials, unless Tenant specifically informs Landlord thereof in writing twenty four
hours prior to such storage, disposal or transport, or otherwise as soon as Tenant
becomes aware of the existence of Hazardous Materials on the Leased Premises.
The obligations of this Paragraph 9 shall survive the expiration or other
termination of this Lease.
10. Insurance.
(a) Workers' Compensation. The Tenant must maintain Workers'
Compensation insurance in compliance with all applicable statutes. The policy shall
also provide Employer's Liability coverage with limits of not less than $500,000 Bodily
Injury each accident, $500,000 Bodily Injury by disease, policy limit, and $500,000
Bodily Injury by disease, each employee.
(b) General Liability. The Tenant must maintain an occurrence form
comprehensive general liability coverage. Such coverage shall include, but not be
limited to, bodily injury, property damage -broad form, and personal injury, for the
hazards of Premises/Operation, broad form, contractual, independent contractors, and
products/completed operations.
The Tenant must maintain aforementioned comprehensive general liability
coverage with limits of liability not less than $5,000,000 each occurrence; $5,000,000
6
,sc-~
personal and advertising injury; $5,000,000 general aggregate, and $5,000,000
products and completed operations aggregate. These limits may be satisfied by the
comprehensive general liability coverage or in combination with an umbrella or excess
liability policy, provided coverage afforded by the umbrella or excess policy are no less
than the underlying comprehensive general liability coverages.
(c) Automobile Liability. The Tenant must carry Automobile Liability
coverage. Coverage shall afford total liability limits for Bodily Injury Liability and
Property Damage Liability in the amount of $5,000,000 per accident. The liability limits
may be afforded under the Commercial Policy, or in combination with an Umbrella or
Excess Liability Policy provided coverage of ridges afforded by the Umbrella Excess
Policy are no less than the underlying Commercial Auto Liability Coverage.
Coverage shall be provided for Bodily Injury and Property Damage for the
ownership, use, maintenance or operation of all owned, non-owned and hired
automobiles.
The Commercial Automobile Policy shall include at least statutory personal injury
protection, uninsured motorists and underinsured motorists coverages.
(d) Tenant Property Insurance. The Tenant must keep in force for the
duration of the Lease a policy covering damages to its property at the Leased Premises.
The amount of coverage shall be sufficient to replace the damaged property, loss of use
and comply with any ordinary or law requirements.
(e) Additional Insured -Certificate of Insurance. The Tenant shall provide,
prior to tenancy, evidence of the required insurance in the form of a Certificate of
Insurance issued by a company (rated B+12 or better), licensed to do business in the
state of Minnesota, which includes all coverages required in this Paragraph 10. Tenant
will list the Landlord as an Additional Insured on the General Liability and Commercial
Automobile Liability Policies. The Certificate(s) shall also provide the coverage may not
be canceled, non-renewed, or materially changed without thirty (30) days prior written
notice to the Landlord.
11. Damage or Destruction. If the Leased Premises is destroyed or damaged,
without contributory fault of the Tenant or its agents, so as, in Tenant's judgement, to
hinder its effective use of the Antennas and/or microwave dishes Facilities, Tenant may
elect to terminate the Lease, upon thirty (30) days' written notice to Landlord. In the
event Tenant elects to terminate the Lease, Tenant shall be entitled to reimbursement
of pre-paid rent covering the period subsequent to the date of damage to or destruction
of the Leased Premises.
12. Lease Termination.
(a) Events of Termination. Except as otherwise provided herein, this Lease
may be terminated by either party upon sixty (60) days written notice to the other party
as follows:
{i) by either party upon a default of any covenant or term hereof by the
7
~E as
other party, which default is not cured within sixty (60) days of receipt of written
notice of default to the other party (without, however, limiting any other rights of
the parties pursuant to any other provisions hereof);
(ii) by Tenant for cause if it is unable to obtain or maintain any license,
permit or other governmental approval necessary for the construction and/or
operation of the Antennas and/or microwave dishes Facilities or Tenant's
business;
iii) by Tenant for cause if the Leased Premises is or becomes
unacceptable for technological reasons under the Tenant's Antennas and/or
microwave dishes Facilities, design or engineering specifications or the
communications systems to which the Antennas and/or microwave dishes
Facilities belong;
(iv) by Landlord, if its Council decides, for any reason to redevelop the
Leased Premises and/or discontinue use of the Structure for all purposes or any
purpose inconsistent with this Agreement. If Landlord decides to discontinue use
to redevelop the Leased Premises, Landlord shall provide aone-year written
notice to Tenant.
(v) by Landlord if it determines that the Structure is structurally
unsound, including, but not limited to, consideration of age of the Structure,
damage or destruction of all or part of the Structure on the Leased Premises from
any source, or factors relating to condition of the Leased Premises;
(vi) or by Landlord if it determines that a potential user with a higher
priority under Subparagraph 3(a) above cannot find another adequate location, or
the Antennas and/or microwave dishes Facilities unreasonably interfere with
another user with a higher priority, regardless of whether or not such an
interference was predicted in the initial interference study that was part of the
application process; or
(vii) by Landlord if it determines that Tenant has failed to comply with
applicable ordinances, or state or federal law, or any conditions attached to
government approvals granted thereunder, after a public hearing before the
Landlord's Council.
(b) Notice of Termination. The parties shall give notice of termination in
writing by certified mail, return receipt requested. Such notice shall be effective upon
receipt as evidenced by the return receipt. All rentals paid for the Lease prior to said
termination date shall be retained by Landlord.
(c) Tenant's Liability for Early Termination. If Tenant terminates this Lease
other than of right as provided in this Lease, Tenant shall pay to Landlord as liquidated
damages for early termination, 150% of the annual rent for the year in which Tenant
terminates unless Tenant terminates during the last year of any Term under Paragraph
4 and Tenant has paid the annual rental for that year, which shall not be refunded.
8
~~ a ~
(d) Site Restoration. In the event that this Lease is terminated or not
renewed, Tenant shall have 60 days from the termination or expiration date to remove
its Antennas and/or microwave dishes Facilities, and related equipment from the
Leased Premises, repair the site and restore the surface of the Structure. Upon the
commencement of this Lease, Tenant shall provide a letter of credit, performance bond
or cash deposit in the amount of $.10,000 to guarantee timely restoration of the Site
following any lease termination. In the event that Tenant's Antennas and/or microwave
dishes Facilities, and related equipment are not removed to the reasonable satisfaction
of the Landlord, they shall be deemed abandoned and become the property of the
Landlord and Tenant shall have no further rights thereto.
13. .Limitation of Landlord's Liability. If Landlord terminates this Lease other than
as of right as ,provided in this Lease, or Landlord causes interruption of the business of
Tenant or for any other Landlord breach of this Lease, Landlord's liability for damages
to Tenant shall be limited to the actual and direct costs of equipment removal, relocation
or repair and shall specifically exclude any other recovery of damages to Tenant,
including but not limited to, value of the business of Tenant as a going concern, future
expectation of profits, loss of business or profit or related damages to Tenant.
14. Temporary Interruptions of Service. If Landlord determines that continued
operation of the Antennas and/or microwave dishes Facilities would cause or contribute
to an immediate threat to public health and/or safety (except for any issues associated
with human exposure to radio frequency omissions, which is regulated by the federal
government), Landlord may order Tenant to discontinue its operation. Tenant shall
immediately comply with such an order. Service shall be discontinued only for the
period that the immediate threat exists. If Landlord does not give prior notice to Tenant,
Landlord shall notify Tenant as soon as possible after its action and give its reason for
taking the action. Landlord shall not be liable to Tenant or any other party for any
interruption in Tenant's service or interference with Tenant's operation of its Antennas
and/or microwave dishes Facilities. If the discontinuance extends for a period greater
than three days, either consecutively or cumulatively, Tenant shall have the right to
terminate this Lease within its sole discretion.
15. Tenant Interference.
(a) With Structure. Tenant shall not interfere with Landlord's use of the
Structure and agrees to cease all such actions which unreasonably and materially
interfere with Landlord's use thereof no later than three business days after receipt of
written notice of the interference from Landlord. In the event that Tenant's cessation of
action is material to Tenant's use of the Leased Premises and such cessation frustrates
Tenant's use of the Leased Premises, within Tenant's sole discretion, Tenant shall have
the immediate right to terminate this Lease.
(b) With Higher Priority Users. If Tenant's Antennas and/or microwave dishes
Facilities cause impermissible interference with higher priority users as set forth under
Subparagraph 5(a) above or with pre-existing tenants, Tenant shall take all measures
necessary to correct and eliminate the interference. If the interference cannot be
eliminated within 48 hours after receiving Landlord's written notice of the interference,
Tenant shall immediately cease operating its Antennas and/or microwave dishes
9
~~-~~
Facilities and shall not reactivate operation, except intermittent operation for the
purpose of testing, until the interference has been eliminated. If the interference cannot
be eliminated within 30 days after Tenant received Landlord's written notice, Landlord
may at its option terminate this Lease immediately.
(c) Interference Study -New Occupants. Upon written notice by Landlord
that it has a bona fide request from any other party to lease an area including or in close
proximity to the Leased Premises ("Leased Premises Area"), Tenant agrees to provide
Landlord, within sixty (60) days, the radio frequencies currently in operation or to be
operated in the future of each transmitter and receiver installed and operational on the
Lease Premises at the time of such request. Landlord may then have an independent,
registered professional engineer of Landlord's choosing perform the necessary
interference studies to determine if the new applicant's frequencies will cause harmful
radio interference to Tenant. Landlord shall require the new applicant to pay for such
interference studies, unless the Landlord or other higher priority user requests the use.
In that event, the Tenant and all other tenants occupying the Leased Premises Area
shall pay for the necessary interference studies, pro rata.
(d) Interference -New Occupants. Landlord agrees that it will not grant a
future lease in the Leased Premises Area to any party who is of equal or lower priority
to Tenant, if such party's use is reasonably anticipated to interfere with Tenant's
operation of its Antennas and/or microwave dishes Facilities. Landlord agrees that it
will require any subsequent occupants of the Leased Premises Area of equal or lower
priority to Tenant to provide Tenant these same assurances against interference.
Landlord shall have the obligation to eliminate any interference with the operations of
Tenant caused by such subsequent occupants. If such interference is not eliminated,
Tenant shall have the right to terminate this Lease or seek injunctive relief against the
interfering occupant, at Tenant's expense.
16. Successors and Assigns. This Agreement shall run with the Property and shall
be binding on and inure to the benefit of the parties, their respective successors,
personal representatives and assigns. Tenant will not assign or transfer this Agreement
or sublet all or any portion of the Leased Premises without the prior written consent of
Landlord which consent will not be unreasonably withheld or delayed provided,
however, that Tenant may assign or sublet without Landlord's consent to any party
controlling, controlled by or under common control with Tenant or to any party which
acquires substantially all assets of Tenant. Except as provided above, Lessee shall
make no other assignment or transfer of this Agreement without obtaining the written
consent of Lessor, which consent shall not be unreasonably withheld.
17. Condemnation. In the event the whole of the Leased Premises is taken by
eminent domain, this Lease shall terminate as of the date title to the Leased Premises
vests in the condemning authority. In event a portion of the Leased Premises is taken
by eminent domain, either party shall have the right to terminate this Lease as of said
date of title transfer, by giving thirty (30) days' written notice to the other party. In the
event of any taking under the power of eminent domain, Tenant shall not be entitled to
any portion of the reward paid for the taking and the Landlord shall receive full amount
of such award. Tenant hereby expressly waives any right or claim to any portion
thereof. Although all damages, whether awarded as compensation for diminution is
10
~~a~
value of the leasehold or to the fee of the Leased Premises, shall belong to Landlord,
Tenant shall have the right to claim and recover from the condemning authority, but not
from Landlord, such compensation as may be separately awarded or recoverable by
Tenant on account of any and all damage to Tenant's business and any costs or
expenses incurred by Tenant in moving/removing its equipment, personal property,
Antennas and/or microwave dishes Facilities, and leasehold improvements.
18. Enforcement and Attorneys' Fees. In the event that either party to this Lease
shall bring a claim to enforce any rights hereunder, the prevailing party, as deemed by
the arbitrator or court, including appellate courts, shall be entitled to recover costs and
reasonable attorneys' fees incurred as a result of such claim, but in no event shall such
fees and costs recoverable exceed $7,500.00.
19. Notices. All notices hereunder must be in writing and shall be deemed validly
given if sent by certified mail, return receipt requested, addressed as follows (or any
other address that the party to be notified may have designated to the sender by like
.notice):
If to Landlord, to: City of Richfield
6700 Portland Avenue South
Richfield, MN 55423
If to Tenant, to: Clearwire USA, Inc.
With a copy to: Clearwire Central, LLC
20. Authority. Each of the individuals executing this Lease on behalf of the Tenant
or the Landlord represents to the other party that such individual is authorized to do so
by requisite action of the party to this Lease.
21. Binding Effect. This Lease shall run with the Leased Premises. This Lease
shall extend to and bind the heirs, personal representatives, successors and assigns of
the parties hereto.
22. Complete Lease; Amendments. This Lease constitutes the entire agreement
and understanding of the parties and supersedes all offers, negotiations, and other
agreement of any kind. There are no representations or understandings of any kind not
set forth herein. Any modification of or amendment to this Lease must be in writing and
executed by both parties.
23. Governing Law. This Lease shall be construed in accordance with the laws of
the State of Minnesota.
11
~~ a ~
24. Severability. if any term of this Lease is found to be void or invalid, such
invalidity shall not affect the remaining terms of this Lease, which shall continue in full
force and effect.
25. Quiet Possession. Tenant is entitled to quiet possession of the Leased
Premises throughout the Term and any Renewal Term so long as Tenant is not in
default hereunder beyond any applicable cure period.
26. Memorandum of Lease. If requested by Tenant, Landlord will promptly execute
and deliver to Tenant a recordable Memorandum of this Agreement.
IN WITNESS WHEREOF, the parties hereto have set their hands and affixed
their respective seals the day and year first above written.
LANDLORD: City of Richfield
BY
Its Mayor
By
Its City Manager
TENANT: Clearwire Central, LLC
gy:
Title:
Date: , 2009
12
~~-~c~
ACKNOWLEDGMENT
STATE OF MINNESOTA )
ss.
COUNTY OF HENNEPIN )
The Foregoing instrument was acknowledged before me this day of
2009 by and ,the Mayor and City
Manager respectively of the City of Richfield, on behalf of the corporation.
:Notary Public in for the State of Minnesota
County of
My Commission expires:
STATE OF )
COUNTY OF )
ACKNOWLEDGMENT
ss.
The Foregoing instrument was acknowledged before me this day of
_, 2009 by the of
on behalf of the limited liability company.
Notary Public in-for the State of
County of
My Commission expires:
13
~~ ~ /
Exhibit A
LEGAL DESCRIPTION OF OWNER'S PROPERTY
The property is legally described as follows:
S 20 Rods of Government Lot 4 And The N'/2 of NE'/4 of SW'/4 Also the E 100 FT
of S 590 FT of N '/Z of NW '/< of SW '/4 Ex Hwy
14
~~ - 3 ~
EXHIBIT B
SKETCH AND DESCRIPTION OF LEASED PREMISES SHOWN IN RELATION TO
OWNER'S PROPERTY
See Attached
15
~_~
~` ..r~
4
~. ~
~e~
r
c
a
rn ~~
as
v ~~
z ~~
l~
;i~
~~
~~
~~~ ~~~~~ j~~~~l
I~~ ~~I~ i~~~i~
fir'" ~ ~~
~~~
h
~~ ~
~.~
~~
~~ ~~
~~ ~~
a
~' STAFF REPORT
AGENDA SECTION:
AGENDA ITEM #
REPORT #
CITY COUNCIL MEETING
NOVEMBER 24, 2009
CONSENT
5F
236.
REPORT PREPARED BY:
DEPARTMENT DIRECTOR REVIEW:..
REVIEWED BY CITY MANAGER:
NAME, TITLE
ITEM FOR COUNCIL CONSIDERATION:
Consideration of Contract Change Order #13 for the Renovation of Lincoln Athletic Complex.
I. RECOMMENDED ACTION:
By Motion: Approve Contract Change Order #13 to install footings
and structures for four scoreboards in the amount of $18,436.00.
II. BACKGROUND
The City of Richfield authorized a contact with Ebert Construction Inc. on June
23, 2009 for the renovation of Lincoln Athletic Complex. Staff is recommending
Council to approve Contract Change Order #13 to provide associated footings
and structures for four scoreboards in the amount of $18,436.00. Scoreboards
for the facility are to be purchased by Richfield Baseball Inc. and Richfield Girls
Softball Association and installed at a later date. Electrical conduit has already
been buried to supply each scoreboard location with electric service.
III. BASIS OF RECOMMENDATION
A. POLICY
• It is appropriate for City Council to review and approve contract
change orders which are additions to the project contract.
B. CRITICAL ISSUES
JIM TOPITZHOFER,~RECREATION SERVICES
DIRECTOR
1124 Lincoln Change Order 13
• The Contractor is under a time constraint to complete the project on a
timely basis. in order to accommodate use as soon as possible for the
next season.
C. FINANCIAL
• If approved; the two contact change orders will change the contract
for Ebert Construction as follows:
Base Bid, Alternates and previous approved change orders $1,015,237.00
Change Order #13 $ 18.436.90
New Contract Amount Cost
$1,033,673.00
• The project is well underway and all submittals have been reviewed
by the Architect. It is anticipated that no other significant change
orders will be brought before City Council other than a few minor
items if that. The project remains under budget. .
• Funding for the remainder of this project will be in the form of an
internal loan to the City's recreation fund, paid back from future
proceeds from City liquor store operations; the same manner that
the City financed the outdoor pool renovation in 2003.
D. LEGAL
• None
E. ENVIRONMENTAL CONSIDERATIONS
• None
IV. ALTERNATIVE RECOMMENDATION~S~
• None
V. ATTACHMENTS
• Change Order #13
VI. PRINCIPAL PARTIES EXPECTED AT
MEETING
• None
~3+'E~T
CCNSTitt]CTION
To: Kevin Busch °
Busch Architects Inc
Suite 501
2402 University Ave W
St Paui, MN 55114-1745
Ph: (651)645-6675 Fax: (651)645-8071
Description:- Score Board Structures
~~ if
23350 County Raad 10
Corcoran, MN 55357
Ph :763-498-7844
Change Proposal
Number: 13
Date: 1113109
Job: 6520 Lincoln Ath{etic Complex
Phone:
We are pleased to offer the following specifications and pricing to make the following changes:
Provide and install score board structures as per price request # 7. Including footing excavation, concrete, reinforcement, steel
structure and painting of steel.
The total amount to provide this work is .................................................................................................. ~i8,436.00
(Please refer to attached sheet #or details.}
If you have any questions, please contact me at (763}498-7844.
Submitted by: Steve Jones
Ebert Construction, inc.
Cc:
Approved by:
Date:
Page 1 of 2
E3~~T
CONSTpUCT10N
~>~ Z
Change Proposal 13 Price Breakdown
Continuation Sheet
Description:. Score Board Structures
23350 County Road 10
Corcoran, MN 55357
Ph : 7fi3-498-7844
Description Labor Material. Equipment Subcontract Other Price
Surveying $650.00 $650.00
Cast-in-Place concrete $7;240.00 $7,240.00
Structural Metals $3,870.00 $3,900.00 $7,770.00
Painting $800.00 $800.00
Project Management $150.00 $150.00
Project Superintendents $150.00 $150.00
J Subtotal: $36,760.00
$16,760.00 10.00% $1,676.00
Total: $38,436.00
Page 2 of 2
AGENDA SECTION:
AGENDA ITEM #
REPORT #
~~ STAFF REPORT
CITY COUNCIL MEETING
NOVEMSER 24, 2009
CONSENT
5G
237
REPORT PREPARED BY:
DEPARTMENT DIRECTOR
REVIEW:
REVIEWED BY CITY
MANAGER: '
BRAD SVEUM -FIRE SERVICES
DIltECTOR
NAME, TITLE
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a purchase of a fire pumper truck and related equipment from General Safety
E ui ment, LLC.
I. RECOMMENDED ACTION:
By Motion: Approve the bid/minutes tabulation and authorize the
purchase of a fire pumper truck and related equipment from General
Safety Equipment, LLC. in the sum of $381,102.00 and authorize the
execution of an agreement for the trade-in of the existing fire pumper
truck as part of the purchase of the new equipment.
II. BACKGROUND
Unit #3787 is a 1994 General Safety Equipment fire pumper truck. The City of
Richfield has replaced fire pumper trucks approximately every sixteen years. This
vehicle has 100,000 miles on it and is currently in reserve service. It is experiencing
high on-going maintenance and repair costs due to it's age and mileage and is
lacking in meeting current vehicle safety standards.
III. BASIS OF RECOMMENDATION
A. POLICY
• ,Four responsible fire apparatus manufacturers submitted bids.
General Safety Equipment, LLC. was the lowest bidder of the four
1124 fire pumper
companies submitting bids and is an established- Minnesota contractor
that meets all requirements.
B. CRITICAL ISSUES
• The current truck (3787) is scheduled for replacement after 16 years of
service.
• The current truck does not meet current National Fire Protection
Association safety standards for the crew riding compartment.
• Due to age and mileage the current vehicle is experiencing constant and
high maintenance and repair costs.
• The replacement vehicle will be designed similar to our current frontline
.pumper truck to aid in personnel operating different vehicles.
• The delivery of the new vehicle will be in late 2010.
C. FINANCIAL
• Funding for the new Fire Rescue Vehicle will be $381,102 from the
2010 Central Garage Equipment Fund. _
D. LEGAL
• The bid opening held on November 12th, 2009 was in accordance with
legal requirements.
• The next lowest bidder that complied with the bid specifications was
Toyne Manufacturing.
E. ENVIRONMENTAL CONSIDERATIONS
• N/A
IV. ALTERNATIVE RECOMMENDATION(S~
• Council may reject all bids and instruct staff to re-advertise, however it is the
opinion of staff that the bid submitted by General Safety Equipment, LLC. is
reasonable and responsible. Staff believes if directed to re-advertise only
one vendor may submit a bid.
• Council could accept a bid received from another vendor. Again however it
is the opinion of staff that the bid submitted by General Safety Equipment,
LLC. is reasonable and responsible.
• Defer replacement of vehicle 3787 at this time. However staff believes
maintenance costs associated with the current vehicle and anticipated future
price increases of new fire trucks will result in overall higher budget impacts.
V. ATTACHMENTS
• Bid minutes and tabulation.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
rn
0
~ N
C
.~ ~ O
N
Q L
Oro
~ ~ O
j r
0
Z
L
N
Q
O
~..
a>
U
~~
~o
rn Z
O
N m
~~
~ ~
~ U
f6 N
>+ ~
L
U
t6 O
~ O
O O
~ N
N i
0
N ~
O
~ O
U
~ O
c6
~ ~
~ ~
~ ~
~ ~
> c
N
ca ~
O
c ~
.~ O
Q ~ O
~ ~ N
Q
N
~o~
~= c ~
~ U
t6
C
N
~ O
~ O Q
c~
O cOn Q-
~ ~~
O Q ~
~ O fB
N ~ .U
~ ~ O
.... a~
o~~
U .~
N ~ ~
N
O O
~ C ~
.~ ~ ;
^~ O
L
o ~ ~
~Y
~ ~ L
~U ~
L ~1
~U~
N
(6
C
L L'
O
U ~~
L_ L
O
U~ ~
~, N ~
O N
~ ~ ~_
~ ~U
~~ ~
U ~ C
C!~ ~ (6
N ~ ~
~L
~ ~ o
~- m ~
C
O
a
_O
(~
ca
C
f4
.~
N
0
c
0
0
H
l7"
0 0 0
0 0 0 0
c*~a o °O ° c °o
Q N ct O O
O~ N z N
_ N
~ ~ ~
~ O O O
U O
° O
° O
o O
°
O
O
O
Z o
~ C4 ~ M
~
~ r
6F} ~
Ef} r
(f}
O O O O
~ O O O O
~ ~ N M r
~ ~ ~ ~ M ti ~
~ Qm 0 ~ ~
Q o
O ti
Q d~} (f} ~ (~}
m m
c ~
o •~
'
~ c
~ ~ ~ ~
U N
~ ~
~~
~ ~
_~
~ ~ ~ ~
>~
C
N
~ ~
co
C
~ O
O ~
Z o
U
~ ~
L
z ~
N _ U
~
O
N `/
U
C
m L
~
U C~ a. I
~U
C
O
U
U
(6
N
07
O
O
N
N
N
O
O
Z
N
t
N
N
.~
c
0
U
C
f6
~~+
.n
c~
O
O
N
m
fa
~_
U
c
0
C
(~
Y
N
U
U
Q.
N
H~
Y
N
U
.,?'
a
Q
N
fB
U
f~
N
N
H
AGENDA SECTION: CONSENT
AGENDA ITEM # 5H
REPORT # 238
~~~ STAFF REPORT
CITY COUNCIL MEETING
NOVEMSER 24, 2009
REPORT PREPARED BY:
ROBERT HINTGEN, UTILITY
SUPERINTENDENT
NAME, TITLE
DEPARTMENT DIRECTOR
REVIEW:
REVIEWED BY CITY
MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Approve a change order to Insituform Technologies USA, Inc. in the amount of $4,051.80.
I. RECOMMENDED ACTION:
By Motion: Approve a change order to Insituform Technologies USA,
Inc. in the amount of $4,051.80 for the purchase and installation of
additional sewer linin
II. BACKGROUND
Richfield's existing infrastructure currently has approximately four miles of sewer
liner in place. On August 11, 2009, Council approved the purchase and installation
of 1,922 linearfeet (approximately one third of a mile) of sanitary sewer lining from
Insituform Technologies USA, Inc, at a cost of $55,636.80 to continue the procedure
for repairing the damaged sewer lines (called CIPP procedure) in the City.
The Utilities Division has located another extremely damaged pipe that needs
repair. This pipe was found through a sewer main television report after the original
agreement was approved. Staff is recommending the purchase of additional
footage (311 feet) of sewer main lining for the replacement of this damaged pipe
This change order for the purchase of the additional lining will cost $4, 051.80,
increasing the total cost of the project from $55,636.80 to $59,688.60. The revised
2009 budget reflects sufficient funds to cover this proposed additional work.
112409COsewerlining
III. BASIS OF RECOMMENDATION
A. POLICY
• The Council must approve change orders to Council approved
contracts.
B. CRITICAL ISSUES
• By using the CIPP procedure, sewer mains can be repaired without
excavation of the roadway.
• An additional damaged pipe was found after the original agreement
was approved.
• Because Insituform Technologies is in Richfield installing the sewer
lining purchased for the project approved on August 11, 2009, they
will give the City the same quoted price per unit as in the original
agreement.
C. FINANCIAL
• The funding for this project was provided in the approved 2009
wastewater budget for $51,500 (line item 52000-7350).
• This amount was increased in the revised 2009 budget to $75,000.
• Remaining funds will only be used for emergency situations.
D. LEGAL
• None
E. ENVIRONMENTAL CONSIDERATIONS
• The Metropolitan Council of Environmental Services (MCES) supports
this type of sewer main repair.
IV. ALTERNATIVE RECOMMENDATION~S~
• Council may choose to reject the change order; however Insituform
Technologies will already be in town completing other areas thus the City
will be receiving the original quoted price.
V. ATTACHMENTS
• None
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
AGENDA SECTION:
AGENDA ITEM #
REPORT #
D
STAFF REPORT
CITY COUNCIL MEETING
NOVEMBER 24, 2009
CONSENT
5I
241
REPORT PREPARED BY: JIM TOPITZHOFER, RECREATION SERVICES
DIRECTOR
NAME, TLTLE
DEPARTMENT DIltECTOR REVIEW:
Sr xE
0
REVIEWED BY CITY MANAGER: ~ ,=r ~' ~~~,:~
ITEM FOR COUNCIL CONSIDERATION:
Consideration of Contract Change Order #1 for the Roof Replacement of Ice Arena Rink One.
I. RECOMMENDED ACTION:
By Motion: Approve Contract Change Order #1 to remove and replace deteriorated
plywood decking and perlite insulation, and install ice and vapor barrier in deteriorated.
areas of the Rink One Roof in the amount of $36,094.00.
II. BACKGROUND
The City of Richfield authorized a contract with QT Commercial on October 13, 2009 to replace
the asphalt shingles and install insulation on the roof of Rink One. The contractor began
removing the shingles and exposed deteriorated plywood decking and perlite insulation in
various areas of the roof. The City Building Official inspected the exposed areas of the roof and
required the decking and perlite insulation be removed and replaced on the north facing
elevation of the roof and a portion of the west facing elevation (see diagram on change order
attachment). The installation of ice and vapor barrier is also required, by the Building Official in
the deteriorated areas. The cost for the above work is $36,094.00.
The east facing elevation does not require any additional work. The south elevation and the
remainder of the west elevation has not been removed prior to the writing of this report. It is
anticipated that there will be additional plywood and perlite removal and replacement required in
the remaining unexposed areas.
1124 Rink One Roof Change Order #1
III. BASIS OF RECOMMENDATION
A. POLICY
• It is appropriate for City Council to review and approve contract change
orders which are additions to the project contract.
B. CRITICAL ISSUES
• The Contractor has exposed more than 50% of the roof and the Building
Official has required the removal and replacement of plywood and perlite
insulation in various areas of the roof. The work should be done as soon
as possible to avoid further damage to the exposed areas.
C. FINANCIAL
• If approved, the contact change order will change the contract-for QT
Commercial as follows:
Base Bid $145,835
Chan a Order #13 36 094
New Contract Amount Cost $181,929
• Change Order #1 will be funded through the City's Recreation Fund
D. LEGAL
• None
E. ENVIIZONMENTAL CONSIDERATIONS
• The installation of plywood and perlite insulation in the deteriorated areas of
the roof will provide additional energy savings beyond the savings estimated
in the original roof replacement project.
IV. ALTERNATIVE RECOMMENDATION~S~
• None
V. ATTACHMENTS
• Change Order #1
VI. PRINCIPAL PARTIES EXPECTED AT
MEETING
• None
~.
QUALITY TRUSTED
~. ~.
RICHFIELD ICE ARENA
>FFICE~ 763-_535-5831 ~ ~FAxJ 763-971-9~~33
3883 West Broadway Avenue Robbinsdale, MN 55422
F
QUALITY TRUSTED
QUALITY TRUSTED COMMERCIAL ROOFING
Change Ot•der Sheet
Date: 11/17/09
Customer Name: City of Richfield
Job Address: Ice Arena
Terms of Change: (for north facing elevation only)
Remove and t•enlace deteriorated ~ly~vood on north elevation
~ 156 ncs x 32= 4992 sf / 4992 sn ft x $ 3.25 sf= $ 16 224 00
Remove and replace deteriorated nerlite insulation on north elevation
960 sf x 1.50 sf= $ 1,440.00
Install new ice and water over all newh~ replaced nlywood to serve as
Additional vapor barrier. 5850 sf x $ .60= $ 3 510.00
Replace vapor barrier that was removed with deteriorated nerlite
975 sf x $ .60= $ 585.00
Additional dump fees for 2 loads of deteriorated materials = S 860 (10
Additional Amount: $ 22,619.00
Deduct Amount:
Owner's Signature:
PLEASE FILE WITH ORIGINAL CONTRACT
F-IC[-~ %63--53~-831 ~ IF=AX~ -763-971-9883
3883 West Broadway Avenue Robbinsdale, MN 55422
NORTH ~Lg~
~^
~ ~'~
' } ~~
~ ~.
~., ~''~; p~'
~, ~ ~~
~ ~ yxr;:
';`T~ ., ~
\- ~ : +
sL~T_ ~~
i
T ~
iJl
~ r `K. •~
~•
~'r.:
~'~
7 ~ ~ ~ ~ a~
'.
- . ~: -~
~ • •.
~.~
~' ~ ;
~' «~ •E. ,
,+ . ±~~.
~~' ~ F
. ~ A '~ ~ y
..e; ,~ ""
T .w I 11 ~. ~ ~ ~
`Y.
~~~ . 7 i ~• ~~ff
_ ,
_ - ..
~. ..
i ~r~
`M ' +K r
~~ s
~~ ,k.
.~ _ _ ~
,~~ - _.
• _- F
• . ~ r ~ ,
~ e w \+
~ ~rsr,~
~' ..
_,_~C~ ;.
s
.,
QUALITY TRUSTED
RICHFIELD ICE ARENA
~FFiCE] 763-535-5331 • (FAx,~ 763-971-9~3II3
3883 West Broadway Avenue Robbinsdale, MN 55422
~I
--~
Q UALITY TRUSTED
QUALITY TRUSTED COMMERCIAL ROOFING
Change Order Sheet
Date: 11/18/09
Customer Name: Citv of Richfield
Job Address: Ice Arena
Terms of Change: (for west facing elevation onlvl day 1, nw corner
Remove and replace deteriorated plywood on west elevation
( 2208 sg ft x $ 3.25 sf= $ 7,176.00
Remove and renlace deteriorated nerlite insulation on west elevation
2144 sl' x 1.50 sf= $ 3,216.00
Install t~ew ice and water over all newly replaced plywood to serve as
Additional vapor barrier. 1950 sf x $ .60= $ 1 170 00
Replace vapor barrier that was removed with deteriorated nerlite
1755 sf x $ .60= $ 1,053.00
Additional dump fees for 2 loads of deteriorated materials = $ 860 (1(1
Additional Amount: $ 13,475.00
Deduct Amount: $
Owner's Signature:
PLEASE FILE WITH ORIGINAL CONTRACT
(_OFF"!c",f ~ "~6:~-5:~5-5831 • ~l~-AYE %E~3-971-9883
3883 West Broadway Avenue Robbinsdale, MN ;"i5422
%~
ti ~ ,~:' M
ti
' " 1
^ °r
` ,,
'
4
F ~~ +
x~ ~r;
111
` t+ ` `
t ~ 4.4.~ 1. .`~4, ~
~`~,~ ~AI
1 j~ ~ \ ~G
_ }}'s
{ ~~'- 1 R ' ~.~ ...~ . ' `Ifs K:.r, r
,,, r .
Y y. ~ 1 ~ . 4 yr .
f-~ t y ~ •C
~~L h ~ ~~''++ .~f ~`R f'~ S ~ '
~a k r r y_.
w~~
~~ t..~:,
Xsr 1y.a 1 , ~~. 9. E ~y ~ i tn_ .. ~ ~ a{ k2~~ ~ w#~i
~,,. .E i Y-' t 4~f ? -.fir ? K 3 ~:' 1 "4"v T t~ t ~'
sj~
L
~"
# s
~»: ~
7 E _'~ '~
,.~ ~ .-~
~ ~
~~•-A•.SJ. _~.
. ~p ~~' ~~
~. ~
• ~~ ~'
,,.r• , ~
~-
.. ~ ~ ~r ~ '
~~
. j~
~j'
_ -
.~~ ~
} ..
~ ~ _ ~ -_
. ,. •.:
._ - - _-
7
s ~ ~~ s~
R.,~ r
t
~.
.~
a~ ~3
~, ~ ~ ~
.. a ~~ .'
+ a ~~ ~
-" ,. - _ _ P
4 ;~.,.
r 'R.~ i ~'
t ~ .
~ ~r
~` ~ ~ '
~,+ 1
~~ ~ `'µ
~.. y~
. - ~ 'j
Wis., ~ ~~
~~
~:.;
_ t
..: Ys.._.:~
F.u_..__..,
a
- ." ~ ~-
~ F-
ny . ,,< aka ` t ~ ~~ _ _ ~ •,~ . ` ~ ,
~... _ _`
:~k " 4 ~~,
1
5 1
-;
i
lK`.
-t.
' .~
~ S ~~"y
_. ~~
~ ~~
t
~~
~~
' sii
.~
T -_
Y l J,
;= ~ V
.s
AGENDA SECTION: RESOLDTIONS
AGENDA ITEM # ~
REPORT # 239
STAFF REPORT
CITY COUNCIL MEETING
NOVEMBER 24, 2009
REPORT PREPARED BY:
KRISTIN ASHER, CITY ENGINEER
NAME, TITLE
DEPARTMENT DIRECTOR
REVIEW:
REVIEWED BY CITY
MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a resolution requesting an advance payment of 2011 Municipal State Aid
(MSA) funds.
I. RECOMMENDED ACTION:
By Motion: Adopt the attached resolution requesting an advance of
2011 Munici al State Aid street funds.
II. BACKGROUND
Minnesota Statute 162.14 provides for municipalities to make advances from future
year's allocations for the purpose of expediting construction. The Minnesota
Department of Transportation State Aid Office solicits requests for advances on a
year-by-year basis depending on the current statewide fund balance. The State Aid
Office is currently accepting requests for the 2011 construction allotment.
Staff is recommending that the City Council adopt the attached resolution to request
an advance of the 2011 allotment to recover construction payments made for the
following projects: Richfield Parkway Roundabout, 6300 Block of Lyndale, 76tH
Street Bridge, Portland Avenue Roundabout.
The current balance of Richfield's MSA account is estimated at $100,000 with an
estimated 2010 allotment in January of $775,000. In order to recover the
construction payments made to past projects the City would need to request
$699,000 of the 2011 construction allotment.
112409MSAAdvance
III. BASIS OF RECOMMENDATION
A. POLICY
• The Minnesota Department of Transportation requires that all State
- - - .Aid Street Fund advances be made via City Council resolution.
B. CRITICAL ISSUES
• The Mn/DOT State Aid Office considers advance requests on a first-
come/first-serve basis.
C. FINANCIAL
Approximate 2009 MSA Balance Remaining
Estimated 2010 Allotment
Estimated Account Balance as of 1 /1 /2010
Estimated Disbursements to Close-Out Projects
157-363-27 (6300 Lyndale Avenue)
157-020-23 (Richfield Parkway Roundabout)
157-090-01 (76th Street Bridge)
157-020-19 (66th and Portland Roundabout)
Total Estimated Disbursements
Total Estimated Disbursements to Close-Out Projects
Less Account Balance as of 1 /1 /2010
2011 Advance Amount Requested
*Estimates $150,000 for the Sinclair right-of--way settlement.
$100,000
$775,000
$875,000
$62,000
$53,000
$39,000
$1,420,000
$1,574,000
$1,574,000
$875,000
$699,000
D. LEGAL
• The City Attorney will be available to answer any questions.
E. ENVIRONMENTAL CONSIDERATIONS
• N/A
IV. ALTERNATIVE RECOMMENDATION(S~
• The Council may choose not to adopt the attached resolution.
V. ATTACHMENTS
• Resolution authorizing an advance of 2011 Municipal State Aid Street Funds
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None expected. '
'~- I
RESOLUTION NO.
RESOLUTION AUTHORIZING AN ADVANCE OF 2011 MUNICIPAL STATE AID
STREET FUNDS.
WHEREAS, the Municipality of Richfield is planning to implement Municipal State
Aid Street Project(s) in 2010 which will require State Aid funds in excess of those available
in its State Aid Construction Account, and
WHEREAS, said municipality is prepared to -proceed with the construction of said
project(s) through the use of an advance from the Municipal State Aid Street Fund to
supplement the available funds in their State Aid Construction Account, and
WHEREAS, the advance is based on the following determination of estimated
expenditures:
Account Balance as of date 1/1/2010 $ 875,000
Less estimated disbursements:
Project # 157-363-27 $ 62,000
Project # 157-020-23 $ 53,000
Project # 157-090-01 $ 39,000
Project #157-020-19, STPX 2706(140) $ 1,420,000
Bond Principle (if any) $ NA
Project Finals (overruns-if any) $ NA
Other $ NA
Total Estimated Disbursements $ 1,574,000
Advance Amount (amount in excess of acct balance) $ 699,000
WHEREAS, repayment of the funds so advanced will be made in accordance with
the provisions of Minnesota Statutes 162.14, Subd. 6 and Minnesota Rules, Chapter
8820.1500, Subp. 10b, and
WHEREAS, the Municipality acknowledges advance funds are released on a first-
come-first-serve basis and this resolution does not guarantee the availability of funds.
NOW, THEREFORE, BE IT RESOLVED That the Commissioner of Transportation
be and is hereby requested to approve this advance for financing approved Municipal
State Aid Street Project(s) of the Municipality of Richfield in an amount up to $699,000. I
hereby authorize repayments from subsequent accruals to the Municipal State Aid Street
Construction Account of said Municipality from future year allocations until fully repaid.
HEREBY CERTIFY that the above is a true and correct copy of a resolution
presented to and adopted by the Municipality of Richfield, County of Hennepin, State of
Minnesota, at a duly authorized Municipal Council Meeting held in the Municipality of
Richfield, Minnesota on the 24th day of November, 2009, as disclosed by the records of
said Municipality on file and of record in the office.
Adopted by the City Council of the City of Richfield, Minnesota this 24th day of
November; 2009.
Debbie Goettel, Mayor
ATTEST:
Nancy Gibbs, City Clerk
AGENDA SECTION:
AGENDA ITEM #
REPORT #
STAFF REPORT
CITY COUNCIL MEETING
NOVEMBER 24, 2009
RESOLDTIONS
8
240
REPORT PREPARED BY:
DEPARTMENT DIlZECTOR
REVIEW:.
REVIEWED BY CITY
MANAGER:
PAM DMYTRENKO, ASSISTANT TO
THE CITY MANAGER
NAME, TITLE
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a resolution modifying the Health Care Savings Plan for Mayor and Council
Members.
I. RECOMMENDED ACTION:
By Motion: Adopt a resolution modifying the Health Care Savings
Plan for the Ma or and Council Members.
II. BACKGROUND
In 2001 the Minnesota legislature granted authority to the Minnesota State
Retirement System (MSRS) to offer a post retirement health care savings plan to
eligible employees of the State of Minnesota and other governmental subdivisions.
MSRS was authorized to administer these plans after they were adopted by
governmental subdivisions throughout the state.
A post retirement health care savings plan (HCSP) is an employer-sponsored
program that allows employees to save money to pay medical expenses and/or
health insurance premiums after termination of public service. Employees are able
to choose among different investment options provided by the State Board of
Investment. Assets contributed into the program are tax-free, accumulate tax free,
and if used for medical expenses, remain tax-free.
Legal authority to establish such plans is provided through Minn. Stat. 352.98 and
Internal .Revenue Service rulings. The establishment of each plan, including the
1124Council modification
contribution formula must be negotiated when dealing with a collective bargaining
unit, or adopted as a personnel policy where non-union employees are involved.
Once established, the plan must be filed with MSRS to initiate the program.
Participation for each individual employee within a bargaining or employee group is
mandatory once the plan is established for that respective group. Moreover, the
amounts contributed for or by each employee in a particular group must be the
same for every employee of the group.. Contributed amounts between employee
groups may vary. -
A HCSP was established by the City Council for the Mayor and Council Members
on March 28; 2006. Under the terms of the current plan, $25 of the member's base
biweekly wage is deposited into their HCSP. Since the establishment of the plan in
March 2006, the plan has not been modified, although plan terms may be changed
once every two years.. The Mayor has requested that this item be brought before
the Council for discussion and possible action. If a majority of the City Council
wishes to make an adjustment to the contribution formula, either by increasing the
flat rate amount or allocating a percentage of biweekly salary, it can do so via the
attached resolution. Any adjustment must be approved by a majority of the City
Council and will be mandatory for all Council Members.
III. BASIS OF RECOMMENDATION
A. POLICY
• The state statutes have been amended to provide the opportunity for a
very valuable benefit to city employees. The City of Richfield has
pursued this benefit with employee groups that are interested in such
a mandatory plan. .
• Approval by the City Council of the attached resolution will provide the
City authority to proceed with this modified program for Richfield City
Council members who are not represented by a collective bargaining
unit.
B. CRITICAL ISSUES
• There is no time critical issue pertaining to the implementation of this
plan.
• After City Council approval, the modified plan must be submitted to
MSRS for filing and implementation.
• Once the plan has been modified, no further changes can be made for
two years.
C. FINANCIAL
• There is no cost to the City in this version of the plan since the City
makes no contribution. In fact there is a cost savings to the City in
that wages and severance pay that the employee contributes to the
Health Care Savings~plan are not subject to Social Security or
Medicare contributions.
The plan provides a great tax savings to the participating employees
and provides a tax mechanism to fund post retirement/post
employment medical costs.
D. LEGAL, .
• There is legal authority for this plan in Minnesota Statutes and IRS
Code.
• A Personnel ,Policy for the City Council provides the full local
authorization for this plan.
E. ENVIRONMENTAL CONSIDERATIONS
• NA
IV. ALTERNATIVE RECOMMENDATION(S~
• The City Council could decide not to approve any plan change. If so, the
current plan would remain in effect.
V. ATTACHMENTS
• Resolution
• Health Care Savings Plan
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
Sr1
RESOLUTION NO.
RESOLUTION AMENDING THE PERSONNEL POLICY FOR THE CITY COUNCIL
ESTABLISHING A POST RETIREMENT HEALTH CARE SAVINGS PLAN
WHEREAS, Laws of Minnesota 2001, chapter 352.98, authorizes the Minnesota
State Retirement System (MSRS) to offer a Post Retirement Health Care Savings Plan
(Plan) program to state employees, as well as other governmental subdivisions; and
WHEREAS, the Internal Revenue Service Code provides for such Plans; and
WHEREAS, the City of Richfield is interested in offering the Plan to eligible City
employees as a tax free method for employees to set aside money to .cover the ever
increasing costs of health insurance.and medical costs after termination of public
employment; and _
.WHEREAS, such plans must 6e established by the employee group, either through
a collective bargaining agreement for union employees or a personnel policy for
employees not covered by a collective bargaining agreement; and
WHEREAS, modifications to the provisions of an established Plan for the Richfield
City Council have been agreed to by the members of the City Council.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Richfield hereby approves amending the Personnel Policy establishing a Health Care
Savings Plan for the City Council employees.
Adopted by the City Council of the City of Richfield, Minnesota this 24th day of
November 2009.
Debbie Goettel, Mayor
ATTEST:
Nancy Gibbs, City Clerk
Policy: Richfield City Council Retirement Health Care Savings Plan
Approved by: Richfield City Council on March 28, 2006
Effective Date: April 3, 2006
Page: 1 of 1
Plan Purpose The Richfield City Council is interested in establishing a means for
eligible Council Members to participate in a mandatory program to help
defray some of the costs of post employment health related expenses,
including health insurance premiums, using pre-tax dollars. Participation
in the Post Retirement Health Care Savings Plan, administered by the
Minnesota State Retirement System (MSRS), is intended to provide an
opportunity to accomplish that goal
Post Retirement The Post Retirement Health Care Savings Plan (HCSP) is an Employer
Health Care sponsored program that allows eligible employees and elected officials
,Savings Plan to defer a portion of their biweekly salary for deposit into their HCSP for
the payment of qualified healthcare-related expenses after separation
from City service.
Council Members will be able to choose among several different
investment options provided by the Minnesota State Board of
Investment. Under the Plan, amounts contributed into the HCSP are
tax-free and not subject to FICA contributions. Assets in the HCSP
accumulate tax-free and since payouts are used for qualifying medical
expenses, they remain tax-free.
Eligibility to Participation in the Richfield City Council Members' HCSP is
Participate mandatory for all elected officials of the Richfield City Council until the
time of termination public service.
Contribution Mandatory participation in the HCSP shall be in accordance with, and
Formula limited to the following formula for contribution:
I. Biweekly Contribution
1. An eligible Council Member will contribute $25 of their base
biweekly. wage to the Council Member's account in the HCSP.
HCSP The HCSP is authorized under the Internal Revenue Code and is
Administration administered by the Minnesota State Retirement System.