062210 agenda packetCITY OF RICHFIELD, MINNESOTA
TUESDAY, JUNE 22, 2010
SPECIAL CITY COUNCIL WORKSESSION
CITY HALL COUNCIL CHAMBERS
6700 PORTLAND AVENUE
5:30 P.M.
AGENDA
Call to order
Roll call
1. Discussion regarding Portland Avenue overlay and three-lane conversion pilot project
(Council Memo No. 88)
Notes:
2. Discussion regarding Property Excellence Task Force final report (Council Memo No. 90)
Notes:
3. Follow-up discussion regarding City of Richfield Key Financial Strategies (time permitting)
Notes:
Adjournment
REGULAR CITY COUNCIL MEETING
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/HRA/Planning Commission Worksession of
June 8, 2010; and (2) Regular City Council Meeting of June 8, 2010
PRESENTATIONS
1. Presentation of Gene and Mary Jacobsen Outstanding Citizen of Year award to Willard
Stevens (Council Memo No. 91)
2. Presentation of $2,000 donation from CenterPoint Energy Community Partnership
Grant Program to Richfield Fire Department to purchase VHF radio pagers and
consideration of resolution accepting grant
Staff Report No. 107
Notes:
3. Presentation of Government Finance Officers Association Distinguished Budget Award
to City of Richfield Finance Manager Chris Regis (Council Memo No. 92)
COUNCIL DISCUSSION
4. Council discussion
• Hats Off to Hometown Hits
Notes:
AGENDA APPROVAL
5. Council approval of agenda
CONSENT CALENDAR
6. 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 agreement with Minnesota Department of Finance for
funding of Honoring All Veterans Memorial S.R. No. 108
B. Consideration of approval of resolution accepting $305,119 grant from U.S.
Department of Homeland Security, 2009 StafFng for Adequate Fire Emergency
Response (SAFER) grant program to Richfield Fire Department S.R. No. 109
C. Consideration of approval of rescheduling Regular City Council Meeting of August
10, 2010 to Monday, August 9, 2010 due to Primary Election and scheduling Special
City Council Meeting on Friday, August 13, 2010 to canvass primary election results
S.R. No. 110
D. Consideration of approval of temporary on-sale 3.2 percent malt liquor license for
Minneapolis-Richfield American Legion Post 435, 6501 Portland Avenue, Fourth of
July activities on July 4, 2010 S.R. No. 111
E. Consideration of approval of annual community celebration event and temporary on-
sale 3.2 percent malt liquor licenses with fee waiver for Fourth of July Committee for
events at Veterans Memorial Park, July 1 through July 6, 2010 S.R. No. 112
Notes:
7. Consideration of items, if any, removed from Consent Calendar
Notes:
OTHER BUSINESS
8. Presentation and receipt of City of Richfield Comprehensive Annual Financial Report
for fiscal year ended December 31, 2009
Staff Report No. 113
Notes:
CITY MANAGER'S REPORT
9. City Manager's report
• Hennepin County 2010 Wellness by Design Award (Council Memo No. 96)
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.
CITY OF RICHFIELD, MINNESOTA
Office of City Manager
June 17, 2010
Council Memorandum No. 8s
The Honorable Mayor
and
Members of the City Council
Subject: Portland Avenue Overlay and Three-Lane Conversion Worksession
(Worksession Agenda Item No. 1 )
Council Members:
The proposed Portland Avenue Three-Lane Conversion Pilot Project will be discussed
at the June 22, 2010 Council Worksession. Hennepin County staff understands the
concerns of the Council and is supportive of gaining meaningful public input before
moving forward with the pilot project. Toward this effort, they have requested a
worksession with the Council before a public open house is scheduled. The
worksession topics will include:
^ A presentation of the proposed pilot striping plan
^ A summary of the benefits of a four-to-three lane conversion
^ Anticipated parking restrictions along Portland Avenue
^ The County's experience with similar projects in other communities
The pilot project was proposed after Hennepin County announced the upcoming
Portland Avenue Mill & Overlay project and the potential to implement a 4-to-3 lane
conversion with striping after the overlay is complete.
SLD:cak
Email: Department Directors
Assistant to the City Manager
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CITY OF RICHFIELD, MINNESOTA
Office of City Manager
June 17, 2010
Council Memorandum No. 90
The Honorable Mayor
and
Members of the City Council
Subject: Property Excellence Task Force
(Worksession Agenda Item No. 2)
Council Members:
In October 2008, former Council Member Kilian recommended to the City Council that a
citizen's task force be formed to identify ways to improve the way the current property
maintenance program is handled. This was to include residential, commercial and City-
owned property.
The City Council issued a press release looking for interested parties and encouraged
them to apply to become a task force member. The Task Force consisted of 15
members with an additional School Board liaison and two City Council liaisons (primary
and alternate). Appointments were made to the Task Force, and the group met for the
first time on April 8, 2009. The group decided they would meet the second and fourth
Wednesdays of each month for approximately six to nine months.
The Task Force discussed the following at their meetings: the property maintenance
process that is currently used, with Environmental Health staff; information regarding
sign-related issues, with Zoning staff; and, rental property and building code/inspection
issues, with Building Inspection staff. Many discussions occurred that resulted in the
group making recommendations for improvement. In some instances, staff was able to
make changes that didn't necessarily result in an increased use of budget funds, while
other items that impacted the budget were to be considered by the City Council in the
group's final report.
The group last met on Wednesday, October 28, 2009, and a final report was completed
in early February 2010.
The City Council received copies of the final report a few weeks ago and will be
discussing the group's work at their June 22, 2010 Worksession. Please bring
this report to the Worksession.
SLD:cak
Email: Department Directors
Assistant to the City Manager
J
CITY COUNCIL MINUTES
Richfield, Minnesota
Special City Council/HRAJPIanning
Commission Worksession
June 8, 2010
CALL TO ORDER
The meeting was called to order by Mayor Goettel at 6:00 p.m.
ROLL CALL
Council Members
Present: Debbie Goettel, Mayor; Sue Sandahl; Pat Elliott; Fred Wroge; and Tom
Fitzhenry.
HRA Members
Present: Sue Sandahl, Chair; Doris Rubenstein; David Gepner, and Steven Quam.
HRA Members
Absent: Joan Helmberger.
Planning Commission
Members Present: Rick Jabs, Chair; Tom Rublein; Gordon Vizecky; Joshua Root; and Robert
Hall.
Planning Commission
Members Absent: Dennis Schuller; Catherine Peloquin; Maureen Scaglia; and Dan
Kitzberger.
Staff Present: Steven L. Devich, City Manager; John Stark, Community Development
Director; Christine Costello, Community Development Coordinator; and
Cheryl Krumholz, Recording Secretary.
Item #1 DISCUSSION REGARDING PROPOSED DEVELOPMENT BY SHERMAN &
ASSOCIATES FOR VACANT CANDLEWOOD PARCEL AND SOUTH PARCEL OF
FORMER GARAGE SITE (COUNCIL MEMO NO. 80)
Sherman Associates, developer, presented a proposed development plan for the former
City Garage (the south portion only) and the vacant Candlewood parcel. A two phase affordable
housing project is proposed. The proposed first phase would begin on the vacant Candlewood
Special Worksession Minutes -2- June 8, 2010
parcel and include afour-story 43 unit affordable apartment building. The proposed second phase
would be developed on the former south half of the City Garage site and would include athree-
story 47 unit affordable apartment building.
Sherman Associates representatives provided a project summary, including discussion of
the site plan, architectural design, funding options with the Minnesota Housing Finance Agency,
proposed affordable housing units; and parking provisions.
Simpson Housing Services discussed the long term homelessness housing units included
in the proposed project and the requirements.
Sherman Associates explained initial funding discussions have included their request to
receive the same funding options from the City as were considered for the previous developer who
is no longer involved.
Community Development Director Stark explained the Comprehensive Plan and zoning
designation for the site. He also discussed the valuation of the property, including the tax exempt
status. He reported that the previous development (ASi) withdrew their agreement in late 2009
due to funding issues.
The City Council/HRA/Planning Commission expressed concerns regarding funding,
parking and the developer's commitment to Phase II. Their consensus was proceed through the
process for the proposed development and be provided with a Sources and Uses financial report.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 6:59 p.m.
Date Approved:
Cheryl Krumholz
Recording Secretary
Debbie. Goettel
Mayor
Steven L. Devich
City Manager
J
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Meeting
June 8, 2010
CALL TO ORDER
The meeting was called to order by Mayor Goettel at 7:00 p.m:
ROLL CALL
Members Present: Debbie Goettel, Mayor; Sue Sandahl; Fred Wroge; Tom Fitzhenry; and Pat
Elliott.
Staff Present: Steven L. Devich, City Manager; Mike Eastling, Public Works Director;
John Stark, Community Development Director; Jim Topitzhofer, Recreation
Services Director; Chris Regis, Finance Manager; Corrine Heine, City
Attorney; and Cheryl Krumholz, Recording Secretary.
OPEN FORUM
.None.
PRESENTATION OF COLORS AND PLEDGE OF ALLEGIANCE
Mayor Goettel led the audience in the Pledge of Allegiance.
APPROVAL OF MINUTES
M/Sandahl, S/Wroge to approve the minutes of (1) Special City Council Worksession of
May 25 2010 and U Regular City Council Meeting of May 25 2010.
Motion carried 5-0.
Item #1 ANNUAL MEETING WITH HUMAN RIGHTS COMMISSION
Molly Darsow, Chair, and Joan Kraft, commission member, provided an update on the
commission's accomplishments and goals. The commission requested a worksession with the.City
Council to discuss establishing a Domestic Partner Registry in Richfield.
Council Meeting Minutes - -2- June 8, 2010
Council Member Wroge questioned if it was an issue for there to be only four commission
members when it is a 13-member commission.
City Attorney Heine explained unless there is a MN Statute or resolution requirement, the
number of votes needed to meet the majority vote is based upon the number of positions filled, not
the number of positions available.
Council Member Fitzhenry suggested the commission may be interested in the "Beyond the
Yellow Ribbon" program related to veterans.
The City Council requested a recruitment begin to fill the Human Rights Commission
vacancies, specifically notifying local churches, the Richfield American Legion and the Richfield
VFW.
Item #2 COUNCIL DISCUSSION
• HATS OFF TO HOMETOWN HITS
• 2010 RICHFIELD BEAUTIFUL GARDEN TOUR
Susan Rosenberg, 6636 Thomas Avenue, Richfield Beautiful Chair, announced the June
19 Richfield Beautiful Garden Tour.
Council Member acknowledged the efforts of the Richfield Class A, Section 6 girls softball
team going to the State championship finals.
Council Member Elliott acknowledged the success of the Richfield girls track team.
Council Member Fitzhenry acknowledged the success of the Memorial Day event at the All
Veterans Memorial.
Council Member Fitzhenry provided an update on the Noise Oversight Committee.
Public Works Director Eastling stated a Council Memo would be prepared to give an update
on the sewer interceptor project. He said he would also provide a Council Memo related to the
proposed railroad crossing upgrade on 76th Street.
The City Council consensus was to schedule a Worksession with the Human Rights
Commission, as they requested, to discuss a proposed Domestic Partner Registry.
Item #4 COUNCIL APPROVAL OF AGENDA
Mayor Goettel removed Item 4C from the Consent Calendar for consideration at a future
meeting. She also stated a revised resolution had been distributed related to Item 4E.
M/Sandahl, S/Elliott to approve the agenda, as amended.
Motion carried 5-0.
Council Meeting Minutes -3- June 8, 2010
Item #4 CONSENT CALENDAR
A. Consideration of approval of Amendment of Commercial Lease with the Minnesota
Department of Transportation and Amendment of License Agreement with Transmission
Shop, Inc. for the parking lot at Cedar and Diagonal Boulevard S.R. No. 97
B. Consideration of approval of resolution authorizing the City Council not to waive the
monetary limits on statutory municipality tort liability S.R. No. 98
RESOLUTION NO. 10370
RESOLUTION AFFIRMING MUNICIPAL TORT LIABILITY LIMITS
ESTABLISHED BY MINNESOTA STATUES 466.04
This resolution appears as Resolution No. 10370.
C. Removed from the agenda.
D. Consideration of approval of Agreement with Hennepin County for funding Lincoln Athletic
Complex S.R. No. 100
E. Consideration of approval of resolution establishing absentee ballot counting board for the
state primary and general elections S.R. No. 101'
RESOLUTION N0. 10371
RESOLUTION AUTHORIZING ESTABLISHING AN ABSENTEE BALLOT
COUNTING BOARD FOR THE STATE PRIMARY AND GENERAL ELECTIONS.
This resolution appears as Resolution No. 10371.
F. Consideration of approval of resolution appointing election judges for the August 10, 2010
Primary Election and the November 2, 2010 General Election S.R. No. 102
RESOLUTION NO. 10372
RESOLUTION APPOINTING ELECTION JUDGES FOR THE STATE
PRIMARY ELECTION OF AUGUST 10, 2010 AND THE GENERAL
ELECTION OF NOVEMBER 2, 2010
This resolution appears as Resolution No. 10372.
G. Consideration of approval of the cancellation of a special assessment in the amount of
$2472.00 for the removal of diseased tree at 6438 Vincent Avenue S.R. 103
M/Sandahl, S/V1/roge to approve the Consent Calendar, as amended.
Motion carried 5-0.
Item #5 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT
CALENDAR
None.
Council Meeting Minutes -4- June 8, 2010
Item #6 PUBLIC HEARING AND SECOND READING OF TRANSITORY ORDINANCE
PROVIDING FOR EXPENDITURE OF FUNDS FROM SPECIAL REVENUE
FUND FOR CERTAIN CAPITAL IMPROVEMENTS S.R. NO. 104
Council Member Wroge presented Staff Report No. 104. He requested the ordinance be
revised to strike "and other ball field improvements" because it is only Lincoln Field improvements.
City Manager Devich explained the City Council may revise the ordinance but that wording
has as always been included. It is understood the funds are only for Lincoln Field. He added that
the Hennepin County grant approved earlier on the agenda for the Lincoln Athletic Complex is not
reflected in this ordinance because the Special Revenue Fund does not include grants.
Bob Hall, 7309 Oliver Avenue, requested the last three items on the ordinance be deleted
because the upgrades for the Municipal Center should be reduced, especially in light of employees
receiving a zero salary adjustment in 2010, there are skate parks in Edina and Minneapolis already,
and the Lincoln Field project is complete so it appears funds are used for other fields.
M/VI/roge, S/Sandahl to close the public hearing.
Motion carried 5-0.
City Manager Devich explained the Special Revenue Fund is used to fund capital projects
which are generally recreation assets that are completed by borrowing from internal funds which
need to be paid back. After discussion with the public and City Council regarding the shortage of
funding for a Dispatch Center in the new Municipal Center, it was determined the Special Revenue
Fund would assist in the funding to build this capital asset. The skate park was postponed from last
year and the Community Services Commission has recommended proceeding with the project this
year as a recreational asset.
Mayor Goettel clarified the Special Revenue Fund cannot be used to augment salaries.
M/V1/roge, S/Sandahl that this constitute the second reading of a Transitory Ordinance No
18.70 providing for the expenditure of funds from the Special Revenue Fund for certain capital
improvements and that it be published in the official newspaper and that it be made part of these
minutes.
Motion carried 5-0.
Item #7 CONSIDERATION OF RESOLUTION APPROVING CONTRACT WITH 911
DISPATCHERS LELS LOCAL 225 FOR CONTRACT PERIOD JANUARY 1
THROUGH DECEMBER 31, 2010 S.R. NO. 105
Council Member Fitzhenry presented Staff Report No. 105.
M/Fitzhenry, S/Goettel that the following resolution be adopted and that it be made part of
these minutes:
RESOLUTION NO. 10373
RESOLUTION APPROVING LABOR AGREEMENT BETWEEN
THE CITY OF RICHFIELD AND LAW ENFORCEMENT LABOR SERVICES (LELS),
LOCAL 225 BARGAINING UNIT FOR THE YEAR 2010
Council Meeting Minutes -5- June 8, 2010
Motion carried 5-0. This resolution appears as Resolution No. 10373.
Item #8 CONSIDERATION OF RESOLUTION AUTHORIZING THREE-YEAR INTERIM
USE PERMIT TO ALLOW CONTINUED USE OF 6529 PENN AVENUE FOR
USED CAR SALES S.R. NO. 106
Council Member Sandahl presented Staff Report No. 106.
M/Sandahl, S/V1/roge that the following resolution be adopted and that it be made part of
these minutes:
RESOLUTION NO. 10374
RESOLUTION APPROVING AN INTERIM USE PERMIT TO
ALLOW USED AUTO SALES BY INTERSTATE AUTO. GROUP INCORPORATED
(DBA CARHOP) AT 6529 PENN AVENUE
Motion carried 5-0. This resolution appears as Resolution No. 10374.
Item #10 CITY MANAGER'S REPORT
Public Works Director Eastling reported on the proposed Portland Avenue lane
reconfiguration pilot project to convert the street from 4-to-3 lanes between 67th to 76th Streets
following a planned pavement overlay by Hennepin County in July 2010.
The City Council consensus was to support the conversion as a pilot project. However, the
City Council requested a public open house be held with the residents in the affected area along
Portland Avenue to gain their feedback on the proposed conversion.
Item #13 CLAIMS AND PAYROLL
M/Wroge, S/Fitzhenry that the following claims and payrolls be approved:
U.S. BANK 05-11-27
A/P Checks: 194983 - 195293
PAYROLL 66668 - 66994; 41490 - 41494
TOTAL
Motion carried 5-0.
OPEN FORUM
$ 1,038,429.77
$ 521,886.07
$ 1,560,315.84
None.
Council Meeting Minutes -6- June 8, 2010
ADJOURNMENT
The City Council meeting was adjourned by unanimous consent at 8:19 p.m.
Date Approved:
Cheryl Krumholz
Recording Secretary
Debbie Goettel
Mayor
Steven L. Devich
City Manager
CITY OF RICHFIELD, MINNESOTA
Office of City Manager
June 17, 2010
Council Memorandum No. 91 °' t
The Honorable Mayor ~~ ~ A~
and
Members of the City Council
Subject: Gene & Mary Jacobsen Citizen of the Year
(Council Agenda Item No. ~ )
Council Members:
The Richfield Human Rights Commission has selected a Citizen of the Year award
recipient since 1971. The award is given to a family, group, organization, business or
individual who lives or works in Richfield and whose actions demonstrate an awareness
and commitment to the attitudes and practices that foster human understanding,
tolerance and the spirit of human relations.
The Human Rights Commission has voted to present the 38th Annual Gene and Mary
Jacobsen Outstanding Citizen award to Willard Stevens, along-time resident of
Richfield. Willard and his wife have lived in Richfield since 1949, where they raised
their three children. He took an interest in his children's education and has remained
active in his concern for students, some 40 years later, even though his children are
grown and out. of the system. He is a huge part of the senior class party and volunteers
time working on, in his words, "electrical stuff." He received a poster from one of the
graduating classes covered with pictures and words of thanks for the job he did to make
their party a success.
Willard has worked and been a member of House of Prayer Lutheran Church for the
past 51 years and continues to usher today. He has and continues to volunteer for
many other community organizations; including, Volunteers Enlisted to Assist People
(NEAP) which he began in the 70s and he continues to work throughout the year; he
has collected food and Christmas gifts for the Salvation Army for the past 37 years; and
he provides hours upon hours for Feed My Starving Children. After 41 years at
Minnegasco, he retired and later received the MARS (Minnegasco's Active Retirement
Service) volunteer of the year award.
Willard is described as being an extraordinary man with an even greater heart. His
volunteerism has no doubt helped to advance the human spirit in Richfield's community.
The 38th Annual Gene & Mary Jacobsen Outstanding Citizen Award will be presented
to V~I~ard Stevens at the Council meeting on June 22, 2010. A 6:30 p.m. reception will
be e d in the City Hall prior to the award presentation.
m
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SLD:cak
Email: Department Directors
Assistant to the City Manager
AGENDA SECTION: PRESENTATIONS
STAFF REPORT
AGENDA ITEM #
REPORT #
CITY COUNCIL MEETING
JUNE 22, 2010
2
1~~
REPORT PREPARED BY:
DEPARTMENT DIRECTOR
REVIEW:
REVIEWED BY CITY
MANAGER:
BRAD SVEUM -FIRE SERVICES
DIRECTOR
TITLE
ITEM FOR COUNCIL CONSIDERATION:
Consideration of resolution accepting donation from CenterPoint Energy Community
Partnership Grant Program.
I. RECOMMENDED ACTION:
By Motion: Approve the resolution accepting the grant donation of
$2000 from CenterPoint Energy Community Partnership Grant
Program to purchase VHF radio papers for Fire Department in 2010.
II. BACKGROUND
CenterPoint Energy has made grant donations for several years to area emergency
responders for emergency response equipment as part of their Community
Partnership Grant program. This is the third year the City of Richfield and the
Richfield Fire Department have been the recipients of this grant.
III. BASIS OF RECOMMENDATION
A. POLICY
• Minnesota Statue 465.03 requires all donations to be accepted by
resolution of the council and adopted by two-thirds majority of its
members.
B. CRITICAL TIMING ISSUES
0622FireDonation
The Fire Department is in need of replacing outdated pagers.
C. FINANCIAL
• This donation aids in reducing the expenditure for Fire operations from
the general fund.
D. LEGAL
• Minnesota State Statute 465.03 requires all donations to be accepted
by resolution of the council and adopted by atwo-thirds majority vote
of its members.
E. ENVIRONMENTAL CONSIDERATIONS
• .None
IV. ALTERNATIVE RECOMMENDATION(S~
• None
V. ATTACHMENTS
• Resolution.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Representative for CenterPoint Energy
a- ~
RESOLUTION NO.
RESOLUTION AUTHORIZING ACCEPTANCE OF CENTERPOINT ENERGY
COMMUNITY PARTNERSHIP GRANT FUNDS RECEIVED BY THE CITY OF
RICHFIELD AND TO AUTHORIZE THE CITY TO ADMINISTER THE FUNDS IN
ACCORDANCE WITH GRANT AGREEMENTS AND TERMS PRESCRIBED BY THE
DONORS
WHEREAS, Minnesota Statute 465.03 reads in part as follows:
Any city, county school district or town may accept a grant or devise of real
or personal property and maintain such property for the benefit of its citizens in accordance
with the terms prescribed by the donor. Nothing herein shall authorize such acceptance or
use for religious or sectarian purposes. Every acceptance shall be by resolution of the
council adopted by two-thirds majority of its members, expressing such terms in full, and
WHEREAS, the City of Richfield has been awarded the grant as described below,
CenterPoint Energy Community Partnership Grant for $2000 to be used
to purchase VHF radio alerting pagers.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield,
Minnesota, as follows:
1. That the City Council of the City of Richfield hereby accepts the CenterPoint
Energy Community Partnership Grant funds in the amount of $2000 for the year 2010 and
authorizes the City to administer the funds in accordance with the grant agreements and
terms prescribed by the donors.
Adopted by the City Council of the City of Richfield, Minnesota this 22nd day of
June, 2010.
Debbie Goettel, Mayor
ATTEST:
Nancy Gibbs, City Clerk
CITY OF RICHFIELD, MINNESOTA ~ ~a, ~`~~
Office of City Manager
June 17, 2010
City Manager
Council Memorandum No. 92
The Honorable Mayor
and
Members of the City Council
Subject: Government Finance Officers Association Distinguished Budget
Presentation Award (Council Agenda Item No.3 )
Council Members:
The Government Finance Officers Association of the United States and Canada
(GFOA) announced recently that the City of Richfield received the GFOA's
Distinguished Budget Presentation Award for its 2010 budget. The award is the highest
form of recognition in governmental budgeting and represents a significant achievement
by the City. In order to receive the budget award, the City had to satisfy nationally
recognized guidelines for effective budget presentation.
This is the 25th year the City has received the GFOA Distinguished Budget
Presentation Award.
The Richfield City Council will present a Certificate of Recognition for Budget
Presentation to Chris Regis, Finance Manager, on June 22, 2010.
R sp ctf. ly submi d,
~~ ~ ~~
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SLD:cak
E-mail: Department Directors
Finance Manager
Assistant to the City Manager
AGENDA SECTION: CONSENT
AGENDA ITEM # 6A
REPORT # l O8
D
STAFF REPORT
CITY COUNCIL MEETING
JUNE 22, 2010
REPORT PREPARED BY:
JIM TOPITZHOFER,
RECREATION SERVICES DIRECTOR
NAME, Ti7zE
DEPARTMENT DIRECTOR
REVIEW:
REVIEWED BY CITY j~
MANAGER: ~~,J
ITEM FOR COUNCIL CONSIDERATION:
Consideration of approval of the Agreement with the Minnesota Department of Finance for
funding of the Honoring All Veterans Memorial.
I. RECOMMENDED ACTION:
By motion: Approve the attached agreement with the Minnesota
Department of Finance for funding of the Honoring All Veterans
Memorial.
IL BACKGROUND
The City of Richfield received funding for the Honoring All Veterans
Memorial from the State of Minnesota in the form of a bonding grant in the
amount of $100,000. The State issues an End Grant for this type of
funding, meaning the grant award is reimbursed to the applicant upon
completion of the project. The State has recently authorized an
agreement to reimburse the City a portion of the grant award when the
project is 85% complete. The project will reach 85% completion upon
completion of the next round of construction which includes a custom
finished colored concrete plaza with in-ground lighting and a concrete
walkway connecting the Memorial to the American Legion parking lot.
The upcoming construction is expected to be completed by July 31, 2010
and the City will be eligible to be reimbursed $85,000.
III. BASIS OF RECOMMENDATION
0622 State Funding Agreement-HAVM
A. POLICY
• City Council approved a resolution authorizing the submittal of a
request for special funding to the Minnesota Department of
Finance for the Honoring All Veterans Memorial on February 12,
2008.
B. CRITICAL TIMING ISSUES
• The project is approaching 85% completion at the end of
July, 2010, and the City has the opportunity to be
reimbursed $85,000 for costs incurred.
C. FINANCIAL
• The revised cost estimate for the project is $351,900.
• Funding for the project is as follows:
State Grant $100,000
City of Richfield, from 2007 CIP $15,000
Honoring All Veterans Memorial, Inc. 236 900
Total Project Cost $351,900
Operating expenses for the monument including electricity,
snow removal, grounds maintenance and repairs will be paid
by HAVM from ongoing engraving revenue.
D. LEGAL
• The attached contract was reviewed by the City Attorney
E. ENVIRONMENTAL
CONSIDERATIONS
• NIA
IV. ALTERNATIVE
RECOMMENDATION(S~
• None
V. ATTACHMENTS
• State Grant Agreement
VI. PRINCIPAL PARTIES EXPECTED AT
MEETING
• N/A
0622 State Funding Agreement-HAVM
CL~~c ~/Y1e~~"
General Obligation Bond Proceeds
Grant Agreement
Modified End Grant
for the
All Veterans Memorial -Richfield, NON
Project
Generic GO Bond Proceeds
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
[THIS PAGE WAS INTENTIONALLY LEFT BLANK]
Generic GO Bond Proceeds
Grant Agreement for End Grants (Gnrc GO GA-End Gmt)
August 18, 2009
TABLE OF CONTENTS
RECITALS I
Article I -DEFINITIONS
Section 1.01 -Defined Terms 2
Article II -GRANT
Section 2.01 - Grant of Monies 5
Section 2.02 - Public Ownership 6
Section 2.03 - Use of Grant Proceeds 7
Section 2.04 - Operation of the Real Property and Facility 7
Section 2.05 - Public Entity Representations and Warranties 8
Section 2.06 - Leasehold Ownership 10
Section 2.07 - Event(s) of Default 12
Section 2.08 - Remedies 13
Section 2.09 - Notification of Event of Default 14
Section 2.10 - Effect of Event of Default 14
Section 2.11 - Termination/Modification of Grant 14
Article III -USE CONTRACTS
Section 3.01 -General Provisions 15
Section 3.02 -Initial Term and Renewal 16
Section 3.03 -Reimbursement of Counterparty 17
Section 3.04 -Receipt of Monies Under a Use Contract 17
Article IV -SALE
Section 4.01 -Sale 17
Section 4.02 -Proceeds of Sale 18
Article V -COMPLIANCE WITH G.O. COMPLIANCE LEGISLATION
AND THE COMMISSIONER'S ORDER
Section 5.01 -State Bond Financed Property 19
Section 5.02 -Preservation of Tax Exempt Status 19
Section 5.03 -Changes to G.O. Compliance Legislation or the
Commissioner's Order 20
Article VI -DISBURSEMENT OF GRANT PROCEEDS
Section 6.01- Disbursement of Grant 20
Section 6.02 -Condition Precedent to Disbursement of Grant 21
Article VII- MISCELLANEOUS
Section 7.01 -Insurance 23
Section 7.02 -Condemnation 24
Section 7.03 -Use, Maintenance, Repair and Alterations 25
Generic GO Bond Proceeds 1
Grant Agreement for End Grants (Gnrc GO GA-End Gmt)
August 18, 2009
Section 7.04 -Records Keeping and Reporting 26
Section 7.05 -Inspections by State, Entity 26
Section 7.06 -Data Practices 26
Section 7.07 -Non-Discrimination 26
Section 7.08 -Worker's Compensation 26
Section 7.09 -Antitrust Claims 27
Section 7.10 -Review of Plans and Cost Estimates 27
Section 7.11 -Prevailing Wages 28
Section 7.12 -Liability 29
Section 7.13 -Indemnification by the Public Entity 29
Section 7.14 -Relationship of the Parties 29
Section 7.15 -Notices 30
Section 7.16 -Binding Effect and Assignment or Modification 31
Section 7.17 -Waiver 31
Section 7.18 -Entire Agreement 31
Section 7.19 -Choice of Law and Venue 31
Section 7.20 - Severability 31
Section 7.21 -Time of Essence 31
Section 7.22 -Counterparts 32
Section 7.23 -Matching Funds 32
Section 7.24 -Source and Use of Funds 32
Section 7.25 -Third-Party Beneficiary 33
Section 7.26 -Public Entity Tasks 33
Section 7.27 -State Entity and Commissioner
Required Acts and Approvals 33
Section 7.28 -Applicability to Real Property and Facility 33
Section 7.29 -Additional Requirements 34
Attachment I -DECLARATION 36
Attachment II -LEGAL DESCRIPTION OF REAL PROPERTY 38
Attachment III -SOURCE AND USE OF FUNDS 40
Generic GO Bond Proceeds 11
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
General Obligation .Bond Proceeds
Grant Agreement -End Grant
for the
All Veterans Memorial -Richfield, MN
Project
THIS AGREEMENT shall be effective as of June 22, 2010 and is between the City of
Richfield, a home rule charter city (the "Public Entity"), and the Department of Administration
(the "State Entity").
RECITALS
A. Under t he pr ovisions c ontained i n Minnesota S tatute S ection 410.19 a nd S ection
6.05 of i is C ity C harter, t he P ublic Entity h as the a uthority t o make s uch contracts as m ay b e
deemed necessary or desirable; and
B. Under the provisions c ontained i n M innesota S ession L aws 2008, C hapter 179 ,
Section 19, Subd. 8, (the " GO B onding L egislation") the S tate o f M innesota h as al located
$100,000 (the "Grant"), which is to be given to the Public Entity as a grant to assist it in the
design and construction of the All Veterans Memorial Project in Richfield, MN as authorized by
such legislation; and
C. Under t he pr ovisions c ontained in Minnesota S tatute S ection 416.01, t he
Public Entity h as th e a uthority to erect an d m aintain a m emorial t o w ar v eterans; (the
"Governmental Program") and
D. The m onies a loocated t o f and t he g rant t o t he P ublic E ntity.are pr oceeds o f s tate
general obligation bonds authorized to be issued under A rticle X I, § 5( a) of t he M innesota
Constitution; and
E. The P ublic E ntity's receipt and use of the Grant t o a cquire a nd/or i mprove r eal
property (the "Real Property") and, if applicable, structures situated thereon (the "Facility") will
cause all of such real property and structures to become "state bond financed property", as such
term is us ed i n M inn. S tat. § 16A .695 (the "G.O. C ompliance L egislation") and i n that c ertain
"Order Amending Order of the Commissioner of Minnesota Management and Budget Relating to
Use an d S ale o f S tate B and F financed P roperty" ex ecuted b y t he then C ommissioner of
Minnesota M anagement a nd B udget on J my 20, 1995 ( the "Commissioner's Order"), ev en
though such funds may only be a portion of the funds being used to acquire and/or improve the
Real Property and, if applicable, Facility and that such funds may be used to only acquire and/or
improve a part of the Real Property and/or, if applicable, Facility.
F. The Public Entity and the State Entity desire to set forth herein the provisions relating
to t he g ranting of s uch m onies a nd t he di sbursement t hereof to the Public Entity, a nd t he
operation. of the Real Property and, if applicable, Facility.
Generic GO Bond Proceeds 1
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
IN CONSIDERATION of the grant described and other provisions in this Agreement, the
parties to this Agreement agree as follows.
Article I
DEFINITIONS
Section 1.01 Defined Terms. As used in this Agreement, the following terms shall have
the meanings set out respectively after each such term (the meanings to be equally applicable to
both the singular and plural forms of the terms defined), unless the context specifically indicates
otherwise:
"Agreement" -means this General Obligation Bond Proceeds Grant Agreement End
Grant for the All Veterans Memorial -Richfield, MN_Project.
"Approved Debt" -means public or private debt that is consented to and approved, in
writing, by the Commissioner, t he proceeds of w hich w ere or will us ed t o a cquire an
ownership interest in or improve the Real Property and, if applicable, Facility, other than
the de bt on t he G .O. B onds. Approved Debt i ncludes, but i s not 1 invited t o, a 11 de bt
delineated in Attachment III to this Agreement; provided, however, the Commissioner is
not bound by any amounts delineated in such attachment unless he/she has consented, in
writing, to such amounts.
"Code" -means the Internal Revenue Code of 1986, a s amended from time to time,
and all treasury regulations, r evenue pr ocedures a nd r evenue r ulings i sued p ursuant
thereto.
"Commissioner" - means t he commissioner of the M innesota Department o f
Minnesota Management and Budget, and any designated representatives thereof.
"Commissioner's Order" -means that certain "O rder A mending O rder o f t he
Commissioner of Minnesota M anagement a nd B udget Relating t o U se an d S ale o f S tate
Bond Financed Property" executed by the then Commissioner of Minnesota Management
and Budget on July 20, 1995.
"Counterparty" -means any entity with which the Public Entity contracts under a Use
Contract. This definition is only needed and only applies if the Public Entity enters into an
agreement with another party under which such other party will operate the Real Property,
and if applicable, Facility. For all other circumstances this definition is not needed and
should be ignored and treated as if were left blank, and any reference to this term in this
Agreement shall be ignored and treated as if the reference did not exist.
"Declaration" - means a d eclaration, o r d eclarations, i n t he form c ontained i n
Attachment I to th is A greement a nd a 11 a mendments thereto, indicating th at th e P ublic
Entity's interest in the Real Property and, if applicable, Facility is bond financed property
Generic GO Bond Proceeds 2
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
within the meaning of the G.O. Compliance Legislation and is subject to certain restrictions
imposed thereby.
"Event of Default" -means one or more of those events delineated in Section 2.07.
"Facility", if applicable, -means All Veterans Memorial -Richfield, MN, which is
located, or will be constructed and located, on the Real Property and all equipment that is a
part thereof that was purchased with the proceeds of the Grant.
"Fair Market Value" -means either (i) the price that would be paid by a willing and
qualified buyer to a willing and qualified seller as determined by an appraisal that assumes
that all liens and encumbrances on the property being sold that negatively affect the value
of s uch pr operty, w ill be paid a nd released, or (ii) t he price bi d by a pur chaser under a
public bi dpr ocedure a fter r easonable publ is not ice, w ith t he pr oviso t hat a 11 liens an d
encumbrances on the property being sold that negatively affect the value of such property,
will be paid and released at the time of acquisition by the purchaser.
"GOB onding L egislation" - means the le gislation d elineated in Recital B
hereinabove.
"G.O. Bonds" -means that portion of the state general obligation bonds issued under
the authority granted in Article XI, § 5(a) of the Minnesota Constitution the proceeds of
which are used to fund the Grant and any bonds issued to refund or replace such bonds.
"G.O. Compliance Legislation" - means M inn. S tat. § 16A .695 a s s uch m ay be
subsequently be amended, modified or replaced from time to time unless such amendment,
modification or replacement imposes an unconstitutional impairment of a contract right.
"Governmental P rogram" - means t he ope ration of the Real P roperty a nd, i f
applicable, Facility for the purpose specified and identified in Recital C of this Agreement
as the Governmental Program.
"Grant" - means a g rant. o f mo nies from the S fate E ntity to the Public Entity in the
amount identified as the "Grant" in Recital B to this Agreement, as. the amount thereof may
be modified under the provisions contained in Sections 2.11 and 6.01.
"Initial A cquisition a nd B etterment C osts" -means the co st t o acq uire t he P ublic
Entity's ownership interest in Real Property and, if applicable, Facility if the Public Entity
does not already possess the required ownership interest, and the costs of betterments of the
Real Property a nd, i f a pplicable, F acility; provided, how ever, t he C ommissioner i s not
bound by any specific amount of such alleged costs unless he/she has consented, in writing,
to such. amount.
"Leased Premises" -means the real estate and structures, if any, that are leased to the
Public Entity under a Real Property/Facility Lease. This definition is only needed and only
applies if the Public Entity's ownership interest in the Real Property, the Facility, if
Generic GO Bond Proceeds 3
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
applicable, or both is by way of a leasehold interest under a Real Property/Facility Lease.
For all other circumstances this definition is not needed and should be ignored and treated
as if were left blank. and anv reference to this term in this Agreement shall be iQ-nored and
treated as if the reference did not exist.
"Lessor" -means the fee owner/lessor of the Leased Premises. This definition is only
needed and only applies if the Public Entity's ownership interest in the Real Property, the
Facility, if applicable, or both, is by way of a leasehold interest under a Real
Property/Facility Lease. For all other circumstances this definition is not needed and
should be ignored and treated as if were left blank, and anv reference to this term in this
Agreement shall be ignored and treated as i the reference did not exist.
"Outstanding Balance ofthe Grant" -means the portion of the Grant that has been
disbursed t o or on be half of t he P ublic E ntity m inus a ny a mounts r eceived by the
Commissioner under Section 2.08.B.
"Ownership Value", i f an y - means t he va lue of t he P ublic E ntity's ow nership
interest, if any, in the Real Property and, if applicable, Facility that existed concurrent with
the Public Entity's execution of this Agreement. Such value shall be established by way of
an a ppraisal or by such other manner as may b e accep table t o t he S tate E ntity an d t he
Commissioner. The parties hereto agree and acknowledge that such value is $351,900 or
Not Applicable; provided, however, the Commissioner is not bound by any inserted
dollar amount unless he/she has consented, in writing, to such amount. If no dollar amount
is inserted and the blank "Not Applicable" is not checked, a rebuttable presumption that the
Ownership V alue i s $0.00 s hall be created. (The blank `Not Applicable "should only be
selected and checked when a portion of the funds delineated in Attachment III attached
hereto are to be used to acquire the Public Entity s ownership interest in the Real Property
and, if applicable, Facility, and in such event the value of such ownership interest should
be shown in Attachment III and not in this definition for Ownership Value).
"Project" - means t he P ublic E ntity's a cquisition, i f a pplicable, of the ow nership
interests in the Real Property and, if applicable, Facility denoted in Section 2.02 along with
the performance of activities de noted i n S ection 2.03 he rein. (If the Public Entity is not
using any portion of the Grant to acquire the ownership interest denoted in Section 2.02,
then this definition for Project shall not include the acquisition of such ownership interest,
and the value of such ownership interest shall not be included in Attachment III hereto
and instead shall be included in the definition for Ownership Value under this Section
1.01.)
"Public E ntity" -means th e e ntity id entified a s th e " Public E ntity" in th a le ad-in
paragraph of this Agreement.
"Real Property" -means the real property located in the County of Hennepin, State of
Minnesota, legally described in Attachment II to this Agreement.
Generic GO Bond Proceeds 4
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
"Real P roperty/Facility L ease" - means a long term lease o f t he R eal P roperty, t he
Facility, if applicable, or both by the Public Entity as lessee thereunder. This definition is
only needed and only applies if the Public Entity's ownership interest in the Real Property,
the Facility, if applicable, or both is a leasehold interest under a lease. For all other
circumstances this definition is not needed and should be ignored and treated as if were left
blank, and an~eference to this term in this Agreement shall be ignored and treated as if
the reference did not exist.
"State E ntity" -means th e e ntity id entified a s th e "State Entity" in th e le ad-in
paragraph of this Agreement.
"Subsequent Betterment Costs" -means the costs of betterments of the Real Property
and, if applicable, Facility that occur subsequent to the date of this Agreement, are not part
of the Project, would qualify as a public improvement of a capital nature (as such term in
used i n M inn. C onstitution A rt. X I, §5(a) of the M innesota C onstitution), and the c ost of
which has been e stablished by way of written doc umentation t hat i s a cceptable t o a nd
approved, in writing, by the State Entity and the Commissioner.
"Use C ontract" - means a lease, management contract o r o ther s imilar co ntract
between the Public Entity and any other entity that involves or relates to any part of the
Real Property and/or, if applicable, Facility. This definition is only needed and only applies
if the Public Entity enters into an agreement with another party under which such other
party will operate the Real Property and/or, if applicable, Facility. For all other
circumstances this definition is not needed and should be ignored and treated as if were left
blank. and an~eference to this term in this Agreement shall be ignored and treated as
the reference did not exist.
"Useful Life o f the R eal E state and, i f applicable, F acility" -means (i) 3 0 years fo r
Real Property that has no structure situated thereon or if any structures situated thereon will
be removed, and no new structures will be constructed thereon, (ii) the remaining useful life
of the Facility as of the effective date of this Agreement for Facilities that are situated on
the Real Properly as of the date of this Agreement, that will remain on the Real Property,
and that will not be bettered, or (iii) the useful life of the Facility after the completion of the
construction or betterments delineated in Attachment III attached hereto for Facilities that
are to be constructed or bettered.
Article II
GRANT
Section 2.01 Grant of Monies. The State Entity shall make and issue the Grant to the
Public E ntity, and disburse the proceeds in a ccordance w ith t he provisions of t his A greement.
The Grant is not intended to be a loan even though the portion thereof that is disbursed may need
to be returned to the State Entity or the Commissioner under certain circumstances.
Generic GO Bond Proceeds 5
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
Section 2.02 Public Ownership. The P ublic E ntity acknowledges and agrees that th e
Grant is being funded with the proceeds of G.O. B onds, and as a result thereof all of the Real
Estate a nd, i f a pppicable, F acility m ust be owned by one or more public entities. In order to
establish t hat t his publ is ow nership r equirement i s s atisfied, t he P ublic E ntity represents and
warrants to the State Entity that it h as, or will acquire, the following ownership interests in the
Real Property and, if applicable, F acility, a nd, i n a ddition, t hat i t pos secs, or will pos sess, a 11
easements necessary for the operation, maintenance and management of the Real Property and, if
applicable, Facility in the manner specified in Section 2.04:
(Check the appropriate box for the Real Property and, if applicable, for the Facility.)
Ownership Interest in the Real Property.
^X Fee simple ownership of the Real Property.
A Real Property/Facility Lease for the Real Property that complies with the
requirements contained in Section 2.06.
[If the term of the Real Property/Facility Lease is for a term authorized by a
Minnesota statute, rule or session law, then insert the citation at this point
An easement for the Real Property (i) that is in form and substance
acceptable to the State Entity and the Commissioner, (ii) that is for a term
that is equal to or greater than 125% of the Useful Life of the Real Estate
and, if applicable, Facility, or for a term authorized by a Minnesota statute,
rule or session law, and (iii) which cannot be modified, restated, amended,
changed in any other way, or prematurely cancelled or terminated without
the prior written consent of the State Entity and the Commissioner.
[If the term of the easement is for a term authorized by a Minnesota statute,
rule or session la w, th en in sert th e c itation a t th is p oint
.]
Ownership Interest in, if applicable, the Facility.
^X Fee simple ownership of the Facility.
A Real Property/Facility Lease for the Facility that complies with all of the
requirements contained in Section 2.06.
[If the term of the Real Property/Facility Lease is for a term authorized by a
Minnesota statute, rule or session law, then insert the citation at this point
.]
Generic GO Bond Proceeds 6
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
Section 2.03 Use o f G rant P roceeds. The P ublic E ntity s hall u se the G rant s olely to
reimburse itself for expenditures it has a lready m ade, or w ill m ake, i n t he performance of the
following activities, and may not use the Grant for any other purpose.
(Check all appropriate boxes.)
Acquisition of fee simple title to the Real Property.
Acquisition of a leasehold interest in the Real Property.
Acquisition of an easement for the Real Property.
XO Improvement of the Real Property.
Acquisition of fee simple title to the Facility.
Acquisition of a leasehold interest in the Facility.
X^ Construction of the Facility.
Renovation of the Facility.
(Describe other or additional purposes.)
Section 2.04 Operation of the Real Property and Facility. The Real Property and, if
applicable, Facility must be used by the Public Entity or the Public Entity must cause such Real
Property and, if applicable, Facility to be used for the operation of the Governmental Program or
for such other use as the Minnesota legislature may from time to time designate, and for no other
purposes or uses.
The Public Entity may enter into Use Contracts with Counterparties for the operation of all
or a ny portion of the Real P roperty an d, i f ap plicable, Facility; p rovided th at all such U se
Contracts must have been approved, in writing, by the State Entity and the Commissioner and
fully comply with all of the provisions contained in Sections 3.01, 3.02 and 3.03.
The Public Entity must, whether it is operating the Real Property and, if applicable, Facility
or has contracted with a Counterparty under a Use Contract to operate all or any portion of the
Real P roperty an d, i f ap plicable, F acility, annually determine t hat t he R eal P roperty a nd, i f
applicable, Facility is being used for the purpose required by this Agreement, and shall annually
supply a s tatement, s worn t o be fore a not ary publ ic, t o s uch e ffect t o t he State Entity and the
Commissioner.
Generic GO Bond Proceeds 7
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
For those programs, if any, that the Public Entity will directly operate on all or any portion
of the Real Property and, if applicable, Facility, the Public Entity covenants with and represents
and warrants to the State Entity that; (i) it has the ability and a plan to fund such programs, (ii) it
has d emonstrated s uch ability b y w ay o f a p lan that it s ubmitted to the State Entity, and (iii) it
will annually adopt, by resolution, a budget for the operation of such programs that clearly shows
that f orecast p rogram r evenues along with other f unds a vailable f or t he ope ration of such
program will be equal to or greater than forecast program expenses for each fiscal year, and. will
supply to the State Entity and the Commissioner certified copies of such resolution and budget.
For those programs, if any, that will be operated on all or any portion of the Real Property
and, if applicable, Facility by a Counterparty under a Use Contract, the Public Entity covenants
with and r epresents an d w arrants t o t he S tate E ntity th at; (i) it w ill n of e nter in to s uch U se
Contract unless the Counterparty has demonstrated that it has the ability and a plan to fund such
program, (ii) it will require the Counterparty to pr ovide a n i nitial program budg et a nd a nnual
program budg ets that c learly s how t hat f orecast pr ogram r evenues a long w ith other funds
available for the operation of such program (from a 11 s ources) w ill be e qual t o or greater than
forecast program expenses for each f fiscal y ear, (iii) it w ill p romptly r eview a 11 s ubmitted
program b udgets t o d etermine i f s uch b udget cl early an d accu rately s hows t hat t he f orecast
program revenues along with other funds available for the operation of such program (from all
sources) w ill b e eq ual t o o r g reater than forecast program expenses for each f fiscal year, (iv) i t
will r eject an y p rogram b udget t hat i t b elieves d oes n of accu rately r effect f orecast program
revenues or expenses or does not show that forecast program revenues along with other funds
available f or t he ope ration of such program (from al 1 s ources) w ill b e eq ual t o o r g reater t han
forecast pr ogram e xpenses, a nd r equire t he C ounterparty t o pr epare a nd submit a revised
program budget, and (v) upon r eceipt of a pr ogram budg et t hat i t be Neves a ccurately r eff ects
forecast program revenues and expenses and that shows that forecast program revenues along
with other funds available for the operation of such program (from all sources) will be equal to
or greater than forecast program expenses, it will approve such budget by resolution and supply
to the State Entity and the Commissioner certified copies of such resolution and budget.
Section 2.05 Public E ntity R epresentations a nd W arranties. The Public E ntity
further covenants with, and represents and warrants to the State Entity as follows:
A. It has legal a uthority t o e nter i nto, e xecute, a nd de liver t his A greement, t he
Declaration, and all documents referred to herein, and it has taken all actions necessary to
its execution and delivery of such documents.
B. It has legal authority to use the Grant for the purpose or purposes described in
Recital B of this Agreement.
C. It has legal authority to operate the Governmental Program.
D. This Agreement, the Declaration, and all other documents referred to herein are
the legal, valid and binding obligations of the Public Entity enforceable against the Public
Entity in accordance with their respective terms.
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Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
E. It w ill c omply w ith a 11 of the terms, conditions, provisions, covenants,
requirements, and warranties in this Agreement, the Declaration, and all other documents
referred to herein.
F. It will c omply w ith a 11 of the pr ovisions a nd r equirements c ontained i n and
imposed by the G.O. Compliance Legislation and the Commissioner's Order.
G. It h as ma de n o ma terial f alse s tatement o r misstatement o f f act i n co nnection
with its receipt of the Grant, and all of the information it has submitted or will submit to the
State Entity or Commissioner relating to the Grant or the disbursement of any of the Grant
is and will be true and correct.
H. It is not in violation of any provisions of its charter or of the laws of the State of
Minnesota, a nd t here a re no a ctions, s uits, or pr oceedings pe nding, or t o its knowledge
threatened, be fore a ny j udicial body or g overnmental a uthority a gainst or affecting it
relating to the Real Property and, if applicable, Facility, or its ownership interest therein,
and it is not in default with respect to any order, writ, injunction, decree, or demand of any
court or a ny g overnmental a uthority w hich w ould i mpair i is ability to enter in to th is
Agreement, the Declaration, or any document referred to herein, or to perform any of the
acts required of it in such documents.
I. Neither t he e xecution a nd delivery of t his A greement, t he D eclaration, or any
document r eferred t o he rein nor c ompliance w ith a ny of the terms, conditions,
requirements, or provisions contained in any of such documents is prevented by, is a breach
of, or will result in a br each of , a ny t erm, c ondition, or provision of a ny a greement or
document to which it is now a party or by which it is bound.
J. The contemplated use of the Real Property and, if applicable, Facility will not
violate any applicable zoning or use statute, ordinance, building code, rule or regulation, or
any covenant or agreement of record relating thereto.
K. The Project has been or will be completed in full compliance with all applicable
laws, statutes, rules, or dinances, a nd r egulations i sued by a ny f ederal, s tate, or 1 ocal
political subdivisions having jurisdiction over the Project.
L. All a pplicable 1 icenses, pe rmits a nd bonds r equired f or the performance and
completion of the Project have been, or will be, obtained.
M. All applicable licenses, permits and bonds required for the operation of the Real
Property and, if applicable, Facility in the manner specified in Section 2.04 have been, or
will be, obtained.
N. It w ill o perate, ma intain, a nd ma nage the Real P roperty an d, i f ap plicable,
Facility or cause the Real Property and, if applicable, Facility, to be operated, maintained
and m anaged i n c ompliance w ith a 11 a pplicable 1 aws, s tatutes, r ules, or dinances, and
Generic GO Bond Proceeds 9
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
regulations i sued by any federal, state, or local political subdivisions having jurisdiction
over the Real Property and, if applicable, Facility.
O. It will fully enforce the terms and conditions contained in any Use Contract.
P. It has c omplied w ith t he m atching f unds r equirement, i f a ny, c ontained i n
Section 7.23.
Q. It will not, w ithout t he pr for w ritten c onsent of the S fate E ntity a nd th e
Commissioner, a llow any vol untary 1 ien or encumbrance or involuntary lien or
encumbrance t hat c an be satisfied by the pa yment of m onies a nd w hich i s not being
actively co ntested t o b e cr Bated o r ex ist against the Public E ntity's interest in th e R eal
Property or , i f a pplicable, F acility, or t he C ounterparty's interest in the Use C ontract,
whether such lien or encumbrance is superior or subordinate to the Declaration. Provided,
however, the S fate E ntity a nd the Commissioner will c onsent to a ny s uch 1 ien or
encumbrance that secures the repayment of a loan the repayment of which will not impair
or burden the funds needed to operate the Real Property and, if applicable, Facility in the
manner s pecified i n Section 2.04 and f or w hich t he e ntire a mount i s us ed (i) t o a cquire
additional r eal e state th at is needed t o s o ope rate t he R eal P roperty a nd, i f a pplicable,
Facility i n a ccordance w ith t he r equirements i mposed unde r S ection 2.04 and w ill be
included in and as part of the Public Entity's interest in the Real Property and, if applicable,
Facility, and/or (ii) to pay for capital improvements that are needed to so operate the Real
Property a nd, i f a pplicable, F acility i n a ccordance w ith the requirements imposed under
Section 2.04.
R. It reasonably expects to possess the ownership interest in the Real Property and,
if applicable, Facility described Section 2.02 for the entire Useful Life of the Real Estate
and, if applicable, Facility, and it does not expect to sell such ownership interest.
S. It d oes n of r easonably ex pect t o r eceive p ayments under a U se C ontract in
excess of the amount the Public Entity needs and is authorized to use to pay the operating
expenses of the portion of the Real Property and, if applicable, Facility that is the subject of
the Use Contract or to pay the principal, interest, redemption premiums, and other expenses
on any Approved Debt.
T. It w ill s upply, or c ause t o be supplied, w hatever f unds are needed above and
beyond the amount of the Grant to complete and fully pay for the Project.
U. It s hall f urnish s uch s atisfactory ev idence r egarding t he r epresentations an d
warranties described herein as may be required and requested by either the State Entity or
the Commissioner.
Section 2.06 Leasehold Ownership. This Section shall only apply if the Public Entity s
ownership interest in the Real Property, the Facility, if applicable, or both is by way of a Real
Property/Facility Lease. For all other circumstances this Section is not needed and should be
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ignored and treated as i were left blank, and any reference to this Section in this Agreement
shall be ignored and treated as if the reference did not exist.
A. A Real Property/Facility Lease must comply with the following provisions.
1. It must be in form a nd c ontents a cceptable t o t he S tate E ntity a nd t he
Commissioner, and specifically state that it may not be modified, restated, amended,
changed in anyway, or prematurely terminated or cancelled without the prior written
consent and authorization by the State Entity and the Commissioner.
2. It must be for a term that is equal to or greater than 125% of the Useful
Life of the Real E state a nd, i f a pplicable, F acility, or such of her pe riod of t ime
specifically authorized by a Minnesota statute, rule or session law.
3. Any payments t o be made under i t by th e P ublic E ntity, whether
designated a s r ent or i n a ny of her m anner, m ust be by way of a single lump sum
payment that is due and payable on the date that it is first made and entered into.
4. It must not c ontain a ny r equirements or obligations of t he P ublic E ntity
that if not complied with could result in a termination thereof.
5. It must contain a provision that provides sufficient authority to allow the
Public E ntity to operate the Real P roperty and, i f ap plicable, F acility i n acco rdance
with the requirements imposed under Section 2.04.
6. It must not c ontain any p rovisions th at w ould limit o r imp air th e P ublic
Entity's operation of the Real Property and, if applicable, Facility in accordance with
the requirements imposed under Section 2.04.
7. It must c ontain a pr ovision t hat pr ohibits t he Lessor from creating or
allowing, without the prior written consent of the State Entity and the Commissioner,
any voluntary lien or encumbrance or involuntary 1 ien or a ncumbrance t hat c an be
satisfied by the payment of monies and which is not being actively contested against
the Leased P remises o r t he L essor's i nterest i n the Real Property/Facility Lease,
whether such lien or e ncumbrance i s s uperior or s ubordinate t o t he D eclaration.
Provided, however, the State Entity and the Commissioner will consent to any such
lien or encumbrance if the holder of such lien or encumbrance executes and files of
record a document under which such holder subordinates such lien or encumbrance to
the Real Property/Facility Lease an d ag rees t hat u pon f oreclosure of such 1 ien or
encumbrance t o be bound by a nd c omply w ith a 11 of the terms, conditions and
covenants contained in the Real Property/Facility Lease as if such holder had been an
original Lessor under the Real Property/Facility Lease.
8. It must a cknowledge the ex istence o f t his A greement an d co ntain a
provision that the terms, conditions and provisions contained in this Agreement shall
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control over any inconsistent or contrary terms, conditions and provisions contained
in the Real Property/Facility Lease.
9. It must provide that any use restrictions contained therein only apply as
long as the Public Entity is the lessee under the Real Property/Facility Lease, and that
such us e r estrictions w ill t erminate a nd not apply to any successor lessee who
purchases the Public Entity's interest in the Real Property/Facility Lease.
B. The pr ovisions contained i n t his S ection are not i ntended t o a nd s hall not
prevent the Public Entity from including additional provisions in the Real Property/Facility
Lease that a re not i nconsistent w ith or c ontrary t o t he requirements c ontained i n t his
Section.
C. The expiration of the term of a R eal P roperty/Facility L ease s hall n of b e an
event that requires the Public Entity to reimburse the State Entity for any portion of the
Grant, and upon such e xpiration t he R eal P roperty a nd, i f a pplicable, F acility s hall no
longer be subject to this Agreement.
D. The P ublic E ntity s hall f ully a nd c ompletely c omply w ith a 11 o f th e to rms,
conditions and provisions contained in a Real Property/Facility Lease, and shall obtain and
file, in the Office of the County Recorder or the Registrar of Titles, whichever is applicable,
the Real Property/Facility Lease or a short form or memorandum thereof.
Section 2.07 Event(s) of Default. The following events shall, unless waived in writing
by the State Entity and the Commissioner, constitute an Event of Default under this Agreement
upon either the State Entity or the Commissioner giving the Public Entity 30 days written notice
of such event and the Public Entity's failure to cure such event during such 30 day time period
for those Events of Default that can be cured within 30 days or within whatever time period is
needed to cure those Events of Default that cannot be cured within 30 days as long as the Public
Entity is using its best efforts to cure and is making reasonable progress in curing such Events of
Default, however, in no event shall the time period to cure any Event of Default exceed 6 months
unless otherwise consented to, in writing, by the State Entity and the Commissioner.
A. If a ny r epresentation, c ovenant, or warranty made b y th e P ublic Entity in this
Agreement, in any other doc ument f urnished pur suant t o t his A greement, or i n or der t o
induce t he S tate E ntity t o di sburse a ny of t he G rant, shall prove to have been untrue or
incorrect in a ny ma terial r espect o r ma terially mis leading a s o f th e time such
representation, covenant, or warranty was made.
B. If. the Public E ntity f ails t o fully c omply w ith a ny pr ovision, t erm, c ondition,
covenant, or warranty contained in this Agreement, the Declaration, or any other document
referred to herein.
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C. If the Public Entity fails t o f idly c omply w ith a ny pr ovision, t enm, c ondition,
covenant or warranty contained in the G.O. Compliance Legislation or the Commissioner's
Order.
D. If the Public Entity fails to provide and expend the full amount of the matching
funds, if any, required under Section 7.23 for the Project.
Notwithstanding t he f oregoing, a ny of t he a Bove delineated events that cannot be cured
shall, unless waived in writing by the State Entity and the Commissioner, constitute an Event of
Default u nder th is A greement imme diately u pon e ither th e S tate E ntity o r th e Commissioner
giving the Public Entity written notice of such event.
Section 2.08 Remedies. Upon the occurrence of an Event of D efault and at any time
thereafter until such E vent o f D efault is cured to th e s atisfaction of th e State Entity, the State
Entity or the Commissioner may enforce any or all of the following remedies.
A. The State Entity may refrain from disbursing the Grant; provided, however, the
State E ntity ma y ma ke such di sbursements after the o ccurrence o f an E vent o f D efault
without thereby waiving its rights and remedies hereunder.
B. If the Event of Default does not involve a failure to comply with the provisions
contained in Sections 4.01 or 4.02, then the Commissioner, as a third parry beneficiary of
this Agreement, may demand that the Outstanding Balance of the Grant be returned to it,
and upon such demand the Public Entity shall return such amount to the Commissioner.
C. If t he E vent of D efault i nvolves a f ailure t o c omply w ith the provisions
contained in Sections 4.01 or 4.02, then the Commissioner, as a third party beneficiary of
this Agreement, may demand that the Public Entity pay the amounts that would have been
paid if there had been full and complete compliance with such provisions, and upon s uch
demand the Public Entity shall pay such amount to the Commissioner.
D. Either the State Entity or the Commissioner, as a third party beneficiary of this
Agreement, may enforce any additional remedies they may have in law or equity.
The rights and remedies herein specified are cumulative and not exclusive of any rights or
remedies that the State Entity or the Commissioner would otherwise possess.
If the Public Entity does not repay the amounts required to be paid under this Section or
under a ny of her pr ovision c ontained i n t his A greement within 30 da ys of de mand by the
Commissioner or a ny a mount ordered by a c ourt of c ompetent j urisdiction w ithin 30 da ys of
entry of j udgment a gainst t he P ublic E ntity a nd i n f avor of the State Entity and/or the
Commissioner, then such amount may, unless precluded by law, be taken from or off-set against
any aids or other monies that the Public Entity is entitled to receive from the State of Minnesota.
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Section 2.09 Notification .of Event of Default. The Public Entity shall furnish to the
State Entity and the Commissioner, as soon as possible and in any event within 7 days after it has
obtained know ledge of the occurrence of e ach E vent of Default or e ach e vent which with the
giving of notice or lapse of time or both would constitute an Event of Default, a statement setting
forth details of each Event of Default or event which with the giving of notice or upon the lapse
of t ime or bot h w ould c onstitute a n E vent of D efault a nd the action which the Public Entity
proposes to take with respect thereto}
Section 2.10 Effect o f E vent o f D efault. This A greement s hall s urvive a ny a nd a 11
Events of Default and remain in full force and effect even upon the payment of any amounts due
under this Agreement, and shall only,be terminated upon the Public Entity's sale of its interest in
the Real P roperty an d, i f ap plicable, Facility in acco rdance w ith t he pr ovisions c ontained i n
Section 4.01 and transmittal of all or a portion of the proceeds of such sale to the Commissioner
in compliance with the provisions contained in Section 4.02, or in accordance with the provisions
contained in Section 2.11.
Section 2.11 Termination/Modification of Grant. If the full amount of the Grant has
not been disbursed on or before the date that is 5 years from the effective date of this Agreement
or such later date to which the Public Entity and the State Entity may agree in writing, then the
State Entity's obligation to fund the Grant shall terminate. In such event, (i) if none of the Grant
has been disbursed by such da to t hen t he S tote E ntity's obligation t o f and a ny portion of the
Grant shall terminate and this Agreement shall terminate and no longer be of any force or effect,
and (ii) i f s ome but not a 11 of the Grant ha s be en disbursed by such date then the State Entity
shall ha ve no f urther obl igation t o pr ovide a ny a dditional f unding for the Grant and this
Agreement shall remain in full force and effect but shall be modified and amended to reflect the
amount of the Grant that was actually disbursed as of such date.
This Agreement shall also terminate and no longer be of any force or effect upon the Public
Entity's sale of its interest in the Real Property and, if applicable, Facility in accordance with the
provisions contained in S ection 4.01 and transmittal of all or a portion of the proceeds of such
sale to the Commissioner in compliance with the provisions contained in Section 4.02, or upon
the t ermination of P ublic E ntity's ow nership i nterest i n t he R eal P roperty a nd, if applicable,
Facility i f s uch o wnership i nterest i s b y w ay o f an easement or under a Real Property/Facility
Lease. Upon such termination the State Entity shall execute, or have executed, and deliver to the
Public Entity such documents a s a re r equired f o r elease t he R eal P roperty a nd, i f a pplicable,
Facility, from the effect of this Agreement and the Declaration.
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August 18, 2009
Article III
USE CONTRACTS
This Article Ill and its contents is only needed and only applies if the Public Entity enters into an
agreement with another party under which such other party will operate any portion of the Real
Property, and if applicable, Facility. For all other circumstances this Article III and it contents
is not needed and should be ignored and treated as if were left blank and an~eference to this
Article III, its contents, and the term Use Contract in this AQ-reement shall be ignored and
treated as if the references did not exist.
Section 3.01 General P rovisions. If th e P ublic E ntity h as s tatutory a uthority to enter
into a U se C ontract, t hen i t m ay e nter U se C ontracts for various portions of the Real Property
and, i f a pplicable, F acility; pr ovided t hat e ach a nd e very U se Contract th at th e P ublic Entity
enters into must comply with the following requirements:
A. The purpose for which it was entered into must be to operate the Governmental
Program..
B. It must contain a provision setting forth the statutory authority under which the
Public E ntity i s e ntering i nto s uch c ontract, a nd m ust c omply w ith the substantive and
procedural provisions of such statute.
C. It must contain a provision stating that it is being entered into in order for the
Counterparty to operate the Governmental Program and must describe such program.
D. It must contain a provision that will provide for oversight by the Public Entity.
Such ove rsight m ay be accomplished by way of a pr ovision t hat w ill require the
Counterparty to provide to the Public Entity; (i) an initial program evaluation report for the
first fiscal year that the Counterparty will operate the Governmental Program, (ii) program
budgets f or each s ucceeding f fiscal y ear s howing t hat f orecast p rogram revenues and
additional r evenues a vailable for the operation of t he G overnmental P rogram (from a 11
sources) by t he C ounterpariy w ill e qual or e xceed e xpenses f or s uch ope ration f or each
succeeding fiscal year, and (iii} a mechanism under which the Public Entity will annually
determine that the Counterparty is using the portion of the Real Property and, if applicable,
Facility that is the subject of the Use Contract to operate the Governmental Program.
E. It mu st a llow f or to rmination b y th e P ublic E ntity in the event of a default
thereunder by t he C ounterparty, or i n t he e vent t hat t he Governmental Program is
terminated or changed in a manner t hat pr ecludes t he ope ration of such pr ogram i n t he
portion of the Real P roperty a nd, i f a pplicable, F acility t hat fi s t he s ubject of t he U se
Contract.
F. It must terminate- upon t he t ermination of the s tatutory a uthority unde r w hich
the Public Entity is operating the Governmental Program.
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G. It must require the Counterparty to pay all costs of operation and maintenance
of that portion of the Real Property and, if applicable, Facility that is the subject of the Use
Contract, unless the Public Entity is authorized by law to pay such costs and agrees to pay
such costs.
H. If the Public Entity pays monies to a Counterparty under a Use Contract, such
Use Contract must meet the requirements of Rev. Proc. 97-13, 1997-1 CB 632, so that such
Use Contract does not result in "private business use" under Section 141(b) of the Code.
I. It must be approved, in writing, by the State Entity and the Commissioner, and
any Use Contract that is not approved, in writing, by the State Entity and the Commissioner
shall be null and void and of no force or effect.
J. It must contain a pr ovision r equiring t hat e ach a nd e very pa rty t hereto s hall,
upon direction by the Commissioner, take such actions and furnish such documents to the
Commissioner as the Commissioner determines to be necessary to ensure that the interest to
be paid on the G.O. Bonds is exempt from federal income taxation.
K. It must c ontain a pr ovision t hat prohibits the Counterparty f rom c reating or
allowing, without the prior written consent of the State Entity and the Commissioner, any
voluntary lien or encumbrance or involuntary lien or encumbrance that can be satisfied by
the payment of monies and which is not being actively contested against the Real Property
or, if applicable, Facility, or the Counterparty's interest in the Use Contract, whether such
lien or encumbrance is superior or subordinate to the Declaration. Provided, however, the
State E ntity a nd the Commissioner will c onsent, i n w riting, t o a ny s uch 1 ien or
encumbrance that secures the repayment of a 1 oan the repayment of which will not impair
or burden the funds needed to operate the portion of the Real Property and, if applicable,
Facility that is the subject of the Use Contract in the manner specified in Section 2.04 and
for which the entire amount is used (i) to acquire additional real estate that is needed to so
operate the Real Property and, if applicable, Facility in accordance with the requirements
imposed unde r S ection 2.04 a nd w ill be i ncluded i n and as part of the Public Entity's
interest in the Real Property and, if applicable, F acility, a nd/or (ii) to p ay f or c apital
improvements that are needed to so operate the Real Property and, if applicable, Facility in
accordance with the requirements imposed under Section 2.04.
L. If t he a mount of t he G rant e xceeds $200,000.00, t hen i t m ust c ontain a
provision requiring the Counterparty to list any vacant or new positions it may have with
state workforce centers as required by Minn. Stat. § 116E .66 that exists as of the date of
this Agreement and as such may subsequently be amended, modified or replaced from time
to time, for the term of the Use Contract.
Section 3.02 Initial Term and Renewal. The initial term for a Use Contract may not
exceed the lesser of (i) 50% of the Useful Life of the Real Estate and, if applicable, Facility for
the portion of the Real Estate and, if applicable, Facility that is the subject of the Use Contract, or
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(ii) th e s hortest term of t he P ublic E ntity's ow nership interest i n t he R eal P roperty an d, i f
applicable, Facility.
A Use Contract may allow for renewals beyond its initial term on the conditions that (i) the
term o f an y r enewal m ay not e xceed th e in itial to rm, (ii) the P ublic E ntity mu st ma ke a
determination that r enewal w ill c ontinue t o c arry out t he G overnmental P rogram a nd t hat t he
Counterparty is suited and able to perform the functions contained in Use Contract that is to be
renewed, (iii) the Use Contract may not include any provisions that would require, either directly
or indirectly, the Public Entity to either make the determination referred to in this Section or to
renew th e U se C ontract w ith th e C ounterparty a fter th e e xpiration o f th e initial term o r an y
renewal term, and (iv) no such renewal may occur prior to the date that is 6 months prior to the
date on which the Use Contract is scheduled to terminate. Provided, however, notwithstanding
anything t o t he c ontrary c ontained herein the Public Entity's voluntary agreement t o r eimburse
the C ounterparty for a ny i nvestment t hat t he C ounterparty pr ovided f or t he a cquisition or
betterment of the Real Property and, if applicable, Facility that is the subject of the Use Contract
if the Public Entity does not renew a Use Contract if requested by the Counterparty is not deemed
to be a provision that directly or indirectly requires the Public Entity to renew such Use Contract.
Section 3.03 Reimbursement o f C ounterparty. A Use C ontract may but ne ed not
contain, at the sole option and discretion of the Public Entity, a provision that requires the Public
Entity to reimburse the Counterparty for any investment that the Counterparty provided for the
acquisition or betterment of the Real Property and, if applicable, Facility that is the subject of the
Use Contract if the Public Entity does not renew a Use Contract if requested by the Counterpariy.
If agreed to by the Public Entity, such reimbursement shall be on terms and conditions agreed to
by the Public Entity and the Counterparty.
Section 3.04 Receipt o f Mo nies U nder a U se C ontract. If th e P ublic E ntity r eceives
any monies unde r a U se C ontract i n e xcess of t he a mount t he P ublic E ntity ne eds and is
authorized t o us e t o pa y t he ope rating e xpenses of the portion of the Real P roperty a nd, i f
applicable, Facility that i s t he s ubject o f a U se C ontract, and to pa y t he pr incipal, i nterest,
redemption premiums, a nd of her a xpenses on Approved D ebt, t hen a por tion of s uch e xcess
monies m ust be paid by t he P ublic E ntity t o t he Commissioner. The portion of s uch e xcess
monies that the Public Entity must and shall pay to the Commissioner shall be determined by the
Commissioner, and absent circumstances which would indicate otherwise such portion shall be
determined by multiplying such excess monies by a fraction the numerator of which is the Grant
and the denominator of which is sum of the Grant and the Approved Debt.
Article IV
SALE
Section 4.01 Sale. The Public Entity shall not sell its interest in the Real Property and, if
applicable, Facility unless all of the following provisions have been complied with fully.
A. The P ublic E ntity d etermines, b y o fficial action, that the Real P roperty an d, i f
applicable, F acility is no 1 onger usable or ne eded f or t he ope ration of the Governmental
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Program, which such determination may be based on a determination that the Real Property
or, if applicable, Facility is no longer suitable or financially feasible for such purpose.
B. The sale is made as authorized by law.
C. The sale is for Fair Market Value.
D. The written consent of the Commissioner has been obtained.
The a cquisition o f th e P ublic E ntity's interest i n t he R eal P roperty a nd, i f applicable,
Facility at a foreclosure sale, by acceptance of a deed-in-lieu of foreclosure, or enforcement of a
security interest in personal property used in the operation thereof, by a lender that has provided
monies for t he a cquisition of t he P ublic E ntity's interest in o r b etterment o f th e R eal P roperty
and, i f applicable, F acility s hall not be c onsidered a sale for the purposes of this A greement i f
after s uch acq uisition t he 1 ender o perates t he R eal P roperty an d, i f ap plicable, F acility i n a
manner w hich i s not i nconsistent w ith t he requirements i mposed under Section 2.04 and t he
lender uses its be st e fforts t o sell such acquired i nterest t o a t hird p arty f or F air M arket V slue.
The 1 ender's ultimate s ale o r disposition o f th e acquired interest in the Real P roperty a nd, i f
applicable, Facility shall be deemed to be a s ale f or t he purposes of t his A greement, a nd t he
proceeds thereof shall be disbursed in accordance with the provisions contained in Section 4.02.
The Public Entity may participate in any public auction of its interest in the Real Property
and, if applicable, Facility and bid thereon; provided that the Public Entity agrees that if it is the
successful purchaser it will not use any part of the Real Property or, if applicable, Facility for the
Governmental Program.
Section 4.02 Proceeds of Sale. Upon the sale of the Public Entity's interest in the Real
Property and, if applicable, Facility the proceeds thereof after the deduction of all costs directly
associated and i ncurred i n c onjunction w ith s uch s ale, but not including the repayment of any
debt associated with the Public Entity's interest in the Real Property and, if applicable, Facility,
shall be disbursed in the following manner and order.
A. The first distribution s hall b e to the Commissioner in an a mount e qual t o t he
Outstanding Balance of the Grant, and if the amount of such net proceeds shall be less than
the amount of the Outstanding Balance of the Grant then all of such net proceeds shall be
distributed to the Commissioner.
B. The remaining portion, after the distribution specified in Section 4.02.A, shall
be distributed to pay in full any outstanding Approved Debt in the order of priority of such
debt.
C. The remaining portion, after the distributions specified in Sections 4.02A and B,
shall b e d istributed to (i) reimburse th e P ublic Entity for its Ownership Value, and (ii) to
pay i nterested publ is a nd pr ivate a ntities, of her t han a ny s uch e ntity t hat has already
received t he f ull a mount of i is c ontribution, t he a mount of m oney t hat s uch entity
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contributed to the Initial Acquisition and Betterment Costs and the Subsequent Betterment
Costs. If such remaining portion is not sufficient to reimburse interested public and. private
entities for the full amount that such entities contributed to the acquisition or betterment of
the Real Property and, if applicable, Facility, then the amount available shall be distributed
as such entities may agree in writing.
D. The r emaining por tion, a fter t he di stributions s pecified i n S ections 4.02.A, B
and C, shall be divided and distributed to the State Entity, the Public Entity, and any other
public a nd private entity that contributed f unds to th e I nitial A cquisition a nd B etterment
Costs and the Subsequent Betterment costs, other then lenders who supplied any of such
funds, in proportion to the contributions that the State Entity, the Public Entity and such
other public and private entities made to the acquisition and betterment of the Real Property
and, i f ap plicable, F acility as such am ounts are part of t he O wnership V slue, I nitial
Acquisition and Betterment Costs, and Subsequent Betterment Costs.
.The di stribution to th e S tate E ntity s hall b e ma de to the Commissioner, and t he P ublic
Entity may d irect its distribution to b e ma de a ny o ther e ntity in cluding, b ut n of limite d to , a
Counterparty.
All amounts to be disbursed under this Section 4.02 must be consented to, in writing, by the
Commissioner, and no such disbursements shall be made without such consent.
The P ublic E ntity s hall not be r equired t o pa y or r eimburse t he State Entity or t he
Commissioner for any funds above and beyond the full net proceeds of such sale, even if such net
proceeds are less than the amount of the Outstanding Balance of the Grant.
Article V
COMPLIANCE WITH G.O. COMPLIANCE LEGISLATION
AND THE COMMISSIONER'S ORDER
Section 5.01 State B and F inanced P roperty. T he P ublic E ntity and the State E ntity
acknowledge and agree that the Public Entity's interest in the Real Property and, if applicable,
Facility is, or when acquired by the Public Entity will be, "state bond financed property", as such
term is used in the G.O. Compliance Legislation and the Commissioner's Order, and, therefore,
the pr ovisions c ontained i n such s tatute a nd or der a pply, or will apply, to the P ublic E ntity's
interest in the Real Property and, if applicable, Facility and any Use Contracts relating thereto.
Section 5.02 Preservation of Tax Exempt Status. In order to preserve the tax-exempt
status of the G.O. Bonds, the Public Entity agrees as follows:
A. It will not use the Real Property or, if applicable, Facility, or use or invest the
Grant or any of her s ums t rested as "bond pr oceeds" under Section 148 of t he C ode
including "investment proceeds," "invested sinking funds," and "replacement proceeds," in
such a m anner a s t o c ause t he G .O. B onds t o be c lassified a s "arbitrage bonds " under
Section 148 of the Code.
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B. It will de posit i nto a nd hol d a 11 of t he G rant t hat i t r eceives unde r t his
Agreement i n a s egregated n on-interest bearing a ccount ant it s uch f ands a re us ed f or
payments for the Project in accordance with the provisions contained herein.
C. It will, upon written request, provide the Commissioner all information required
to satisfy the informational requirements set forth in the Code including, but not limited to,
Sections 103 and 148 thereof, with respect to the GO Bonds.
D. It will, upon the occurrence of any act or omission by the Public Entity or any
Counterparty that could cause the interest on the GO Bonds to no longer be tax exempt and
upon direction from the Commissioner, take such actions and furnish such documents as
the Commissioner determines to be necessary to ensure that the interest to be paid on the
G.O.. Bonds is exempt from f ederal t axation, w hich s uch a ction m ay i nclude e ither; (i)
compliance w ith pr oceedings i ntended t o c lassify t he G .O. B onds a s a "qualified bond"
within the meaning of Section 141(e) of the Code, (ii) changing the nature or terms of the
Use Contract so that i t c omplies w ith R evenue P rocedure 97 -13, 1997-1 C B 632, or (iii)
changing the nature of the use of the Real Property or, if applicable, Facility so that none of
the net proceeds of t he G .O. B onds w ill be used, directly or i ndirectly, i n a n "unrelated
trade or business" or for any "private business use" (within the meaning of Sections 141(b)
and 145 (a) of the C ode), or (iv) c ompliance w ith of her C ode pr ovisions, r egulations, or
revenue procedures which amend or supersede the foregoing.
E. It will not otherwise use any of the Grant, including earnings thereon, if any, or
take or permit to or cause to be taken any action that would adversely affect the exemption
from federal income taxation of the interest on the G.O. Bonds, nor otherwise omit, take, or
cause to be taken any action necessary to maintain such tax exempt status, and if it should
take, permit, omit to take, or cause to be taken, as appropriate, any such action, it shall take
all lawful actions necessary to rescind or correct such actions or omissions promptly upon
having knowledge thereof.
Section 5.03 Changes to G.O. Compliance Legislation or the Commissioner's Order.
In the event that the G.O. Compliance Legislation or the Commissioner's Order is amended in a
manner that reduces any requirement imposed against the Public Entity, or if the Public Entity's
interest in the Real P roperty o r, i f ap plicable, Facility is e xempt f rom th e G .O. C ompliance
Legislation and the Commissioner's Order, then upon w ritten request by the Public Entity the
State Entity shall enter into and execute an amendment to this Agreement to implement herein
such amendment to or exempt the Public Entity's interest in the Real Property and, if applicable,
Facility from the G.O. Compliance Legislation or the Commissioner's Order.
Article VI
DISBURSEMENT OF GRANT PROCEEDS
Section 6.01 Disbursement o f G rant. Upon compliance with all of t he c onditions
delineated in Section 6.02, the State Entity shall disburse the Grant to the Public Entity in two
Generic GO Bond Proceeds 20
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
payments. The first payment, in the amount of $85,000, will be made when 85% of the work has
been completed. and documented by the Public Entity and the memorial~is available for public
use. The second and final payment, in the amount of $15,000, will be made after completion of
the All Veterans Memorial -Richfield, MN, $351,900. Under no circumstance shall the State
Entity be required to disburse funds in excess of the amount requested by the Public Entity under
the provisions contained in Section 6.02.A even if the amount requested is less than the amount
of the Grant de lineated in S ection 1.01. I f the amount of Grant that the State Entity disburses
hereunder to the Public Entity is less than the amount of the Grant delineated in Section 1.01,
then the State Entity and the Public Entity shall enter into and execute whatever documents the
State Entity may request in order to amend or modify this Agreement to reduce the amount of the
Grant to the amount actually disbursed. Provided, however, in accordance with the provisions
contained i n S ection 2.11, th e S tate E ntity's obligation t o di sburse a ny of t he G rant s hall
terminate as of the date specified in such Section even if the entire Grant has not been disbursed
by such date.
The G rant s hall o my b e f or ex penses t hat (i) ar o f or t hose i terns o f a capital nature
delineated in Attachment III to this Agreement, (ii) accrued no earlier than the effective date of
the G O B onding L egislation, or (iii) have otherwise be en c onsented t o, i n w riting, by the
Commissioner.
Section 6.02 Condition P recedent t o D isbursement o f G rant. The obligation of the
State Entity to disburse the Grant to the P ublic E ntity is subject to th e f ollowing c onditions
precedent:
A. The State Entity shall have received a r equest f or d isbursement o f t he G rant
specifying the amount of funds being requested, which such amount shall not exceed the
amount of the Grant delineated in Section 1.01.
B. The State Entity shall have received a duly executed Declaration that has been
duly recorded in the appropriate governmental office, with all of the recording information
displayed thereon.
C. The State Entity shall have received evidence, in form and substance acceptable
to the State Entity, that (i) the Public Entity has legal authority to and has taken all actions
necessary to enter into this Agreement and the Declaration, and (ii) this Agreement and the
Declaration are binding on and enforceable against the Public Entity.
D. The State Entity shall have received evidence, in form and substance acceptable
to the State Entity, that the Public Entity has fully and completely paid for the Project and
all other expenses that may occur in conjunction therewith.
E. The State Entity shall have received evidence, in form and substance acceptable
to th e S tate E ntity, th at th e P ublic E ntity is in c ompliance w ith the matching funds
requirements, if any, contained in Section 7.23 and that all of such matching funds, if any,
have been expended for the Project.
Generic GO Bond Proceeds 21
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
F. The State Entity shall have received evidence, in form and substance acceptable
to th e S fate E ntity, s howing th at the Public Entity possesses the ow nership i nterest
delineated in Section 2.02.
G. The State Entity shall have received evidence, in form and substance acceptable
to the State Entity, that the Real Property and, if applicable, Facility and the contemplated
use thereof are permitted by and will comply with all applicable use or other restrictions
and requirements imposed by applicable zoning ordinances or regulations, and, if required
bylaw, have been duly approved by the applicable municipal or governmental authorities
having jurisdiction thereover.
H. The State Entity shall have received evidence, in form and substance acceptable
to t he State Entity, that that all applicable a nd r equired b uilding p ermits, o ther p ermits,
bonds and licenses necessary for the Project have been paid for, issued, and obtained, other
than those permits, bonds and licenses which may not lawfully be obtained until a future
date or those permits, bonds and 1 icenses which in the ordinary course of business would
normally not be obtained until a later date.
I. The State Entity shall have received evidence, in form and substance acceptable
to the S fate E ntity, th at t hat a 11 a pplicable a nd r equired pe rmits, bonds and 1 icenses
necessary for the operation of the Real Property and, if applicable, Facility in the manner
specified in Section 2.04 have been paid for, issued, and obtained, other than those permits,
bonds and licenses which may not lawfully be obtained until a future date or those permits,
bonds and 1 icenses w hich i n t he or dinary c nurse of bus iness w ould nor many not be
obtained until a later date.
J. The State Entity shall have received evidence, in form and substance acceptable
to th e S fate E ntity, th at th e P roj ect w as c ompleted in a ma nner that will allow the Real
Property and, if applicable, Facility to be operated in the manner specified in Section 2.04,
which requirement maybe satisfied by a certificate of occupancy or such other equivalent
document from the municipality in which the Real Property is located.
K. The State Entity shall have received evidence, in form and substance acceptable
to the State Entity, that the Public Entity has the ability and a plan to fund the operation of
the Real Property and, if applicable, Facility in the manner specified in Section 2.04.
L. The State Entity shall have received evidence, in form and substance acceptable
to the State Entity, that the insurance requirements under Section 7.01 have been satisfied.
M. The State Entity shall have received evidence, in form and substance acceptable
to the State Entity, of compliance with the provisions and requirements specified in Section
7.10 and all additional applicable provisions and requirements, if any, contained in Minn.
Stat. § 16B .335 that exists as of the date of this Agreement and as such may subsequently
be amended, modified or replaced from time to time. Such evidence shall include, but not
be limited to, evidence that; (i) the predesign package referred to in Section 7.10.B has, if
Generic GO Bond Proceeds 22
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
required, been reviewed b y an d r eceived o f avorable r ecommendation f rom t he
Commissioner of Administration for the State of Minnesota, (ii) the program plan and cost
estimates referred to in Section 7.10.C have, if required, received a recommendation by the
Chairs o f t he M innesota S tate S enate F finance C ommittee an d M innesota H ouse o f
Representatives Ways and Means Committee, and (iii) the Chair of the Minnesota House of
Representatives C apital Investment C ommittee h as, i f required, been notified pur suant t o
Section 7.10.G.
N. No Event of Default under this Agreement or event which would constitute an
Event of Default but for the requirement that notice be given or that a period of grace or
time elapse shall have occurred and be continuing.
O. The Public Entity has supplied to the State Entity all other items that the State
Entity may reasonably require.
Article VII
MISCELLANEOUS
Section 7.01 Insurance. The P ublic E ntity s hall, upon a cquisition of the ow nership
interest delineated in Section 2.02, insure the Facility, if such exists, in an amount equal to the
full i nsurable va lue t hereof by s elf i nsuring unde r a pr ogram of s elf i nsurance 1 egally adopted,
maintained and adequately funded by the Public Entity or by way of builders risk insurance and
fire an d ex tended co verage i nsurance w ith a d eductible i n an amount accep table t o t he State
Entity, and shall name the State Entity as loss payee thereunder. If damages which are covered
by such required insurance occur, then the Public Entity shall, at its sole option and discretion,
either; (i) use or cause the insurance proceeds to be used to fully or partially repair such damage
and to provide or cause to be provided whatever additional funds that may be needed to fully or
partially r epair s uch d amage, o r (ii) sell its interest in th e d amaged F acility and portion of the
Real Property associated therewith in accordance with the provisions contained in Section 4.01.
If th e P ublic E ntity e lects t o onl y pa rtially r epair s uch da mage, t hen t he portion of the
insurance proceeds not used for such repair shall be applied in accordance with the provisions
contained in Section 4.02 as if the Public Entity's interest in the Real Property and Facility had
been sold, and such amounts shall be credited against the amounts due and owing under Section
4.02 upon the ultimate sale of the Public Entity's interest in the Real Property and Facility. If the
Public Entity elects to sell its interest in the damaged Facility and portion of the Real Property
associated therewith, then such sale must occur within a reasonable time period from the date the
damage oc curred a nd t he c umulative s um of t he i nsurance proceeds pl us t he proceeds of such
sale m ust be a pplied i n a ccordance w ith t he pr ovisions c ontained i n Section 4.02, w ith t he
insurance proceeds be ing s o a pplied w ithin a r easonable t ime pe riod f rom t he da to t hey are
received by the Public Entity.
The S tate E ntity a grees t o a nd w ill a sign or pay over to the Public E ntity a 11 insurance
proceeds it receives so that the Public Entity can comply with the requirements that this Section
imposes thereon as to the use of such insurance proceeds.
Generic GO Bond Proceeds 23
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
Ifthe Public Entity elects to maintain general comprehensive liability insurance regarding
the Real Property and, if applicable, Facility, then the Public Entity shall have the State Entity
named as an additional named insured therein.
At the written request of either the. State Entity or the Commissioner, the Public Entity shall
promptly f urnish to th e r equesting e ntity a 11 w ritten n otices a nd a 11 paid premium receipts
received b y t he P ublic E ntity r egarding t he r equired i nsurance, or. certificates of insurance
evidencing the existence of such required insurance.
If the Public Entity fails to provide and maintain the insurance required under this Section,
then the State Entity may, at its sole option and discretion, obtain and maintain insurance of an
equivalent na ture a nd a ny f unds e xpended by t he S fate E ntity t o obt ain or maintain s uch
insurance shall be due and payable on demand by the State Entity and bear interest from the date
of advancement by the State E ntity at a r ate eq ual t o t he 1 esser o f t he m aximum i nterest r ate
allowed by 1 aw or 18% pe r a nnum based upon a 365 day year. Provided, how ever, nothing
contained herein, including but not limited to this Section, shall require the State Entity to obtain
or m aintain s uch i nsurance, a nd th e S fate .Entity's decision t o not obt ain or m aintain s uch
insurance shall not lessen the Public Entity's duty to obtain and maintain- such insurance.
Section 7.02 Condemnation. If after the P ublic E ntity ha s a cquired t he ow t~ership
interest d elineated in Section 2.02 all or a ny por tion of the Real P roperty an d, i f ap plicable,
Facility is c ondemned t o a n e xtent t hat t he P ublic E ntity c an no 1 onger c omply w ith t he
provisions c ontained i n S ection 2.04, t hen t he P ublic E ntity s hall, a t i is s ole opt ion and
discretion, either; (i) use or cause the condemnation proceeds to be used to acquire an interest in
additional real property needed for the Public Entity to continue to comply with the provisions
contained i n S ection 2.04 and, if applicable, to f ully o r p artially restore the Facility and to
provide or cause to be provided whatever additional funds that may be needed for such purposes,
or (ii) sell the remaining portion of its interest in the Real Property and, if applicable, Facility in
accordance with the provisions contained in Section 4.01. A ny condemnation proceeds which
are not us ed t o a cquire a n i nterest i n a dditional r eal property or f o r estore, i f a pplicable, t he
Facility shall be applied i n a ccordance w ith t he pr ovisions c ontained i n S ection 4.02 as i f t he
Public Entity's interest in the Real Property and, if applicable, Facility had been sold, and such
amounts s hall be c redited a gainst t he a mounts due and ow ing under Section 4.02 upon t he
ultimate s ale o f th e P ublic E ntity's interest in the remaining Real P roperty an d, i f ap plicable,
Facility. If the Public Entity elects to sell its interest in the portion of the Real Property and, if
applicable, Facility that remains after th e c ondemnation, th en s uch s ale mu st o ccur w ithin a
reasonable time period from the date the condemnation occurred and the cumulative sum of the
condemnation proceeds plus the proceeds of such sale must be applied in accordance with the
provisions contained in Section 4.02, with the condemnation proceeds being so applied within a
reasonable time period from the date they are received by the Public Entity.
As recipient of any of condemnation awards or proceeds referred to herein, the State Entity
agrees to a nd w ill di sclaim, a ssign or pa y ove r t o t he P ublic E ntity a 11 of s uch c ondemnation
awards or proceeds it receives so that the Public Entity can comply with the requirements that
Generic GO Bond Proceeds 24
Grant Agreement fot End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
this S ection imposes upon the P ublic E ntity a s t o t he us e of s uch c ondemnation a wards or
proceeds.
Section 7.03 Use, Maintenance, Repair and Alterations. The Public Entity shall (i)
keep t he Real P roperty an d, i f ap plicable, Facility, i n g ood c onditiori a nd r epair,subject to
reasonable an d o rdinary w ear an d t ear, (ii) complete pr omptly a nd i n g ood a nd w orkmanlike
manner any building or other improvement which may be constructed on the Real Property and
promptly restore in like manner any portion of the Facility, if applicable, which may be damaged
or destroyed thereon and pay when due all claims for labor performed and materials furnished
therefore, (iii) comply with all laws, ordinances, regulations, requirements, covenants, conditions
and restrictions now or hereafter affecting the Real Property or, if applicable, Facility, or any part
thereof, or r equiring a ny a Iterations or i mprovements t hereto, (iv) ke ep a nd maintain abutting
grounds, sidewalks, roads, parking a nd 1 andscape a reas i n g ood a nd n eat or der a nd r epair, (v)
comply with the provisions of any Real Property/FacilityLerie if the Public Entity's interest in
the Real P roperty an d, i f ap plicable, Facility, is a le asehold interest, and (vi) c omply w ith th e
provisions of any condominium documents and any applicable reciprocal easement or operating
agreements if the Real Property and, if applicable, Facility, is part of a condominium regime or is
subject to a reciprocal easement or use agreement.
The P ublic E ntity s hall not, w ithout t he w ritten consent of t he S fate E ntity a nd t he
Commissioner, (a) permit or suffer the use of any of the Real Property or, if applicable, Facility,
for any,pur pose of her t han t he pur poses s pecified i n S ection 2.04 , (b) r emove, de molish or
substantially alter any of the Real Property or, if applicable, Facility, except such alterations as
may be required by laws, ordinances or regulations or such other alterations as may improve such
Real Property or, if applicable, Facility by increasing the value thereof or improving its ability to
be used to operate the Governmental Program thereon or therein, (c) do any act or thing which
would unduly impair or depreciate the value of the Real Property or, if applicable, Facility, (d)
abandon t he Real P roperty o r, i f ap plicable, Facility, (e) c ommit o r p ermit a ny w aste o r
deterioration of the Real Property or, if applicable, Facility, (f) remove any fixtures or personal
property from the Real Property or, if applicable, Facility, that was paid for with the proceeds of
the Grant unless the same are immediately replaced with like property of at least equal value and
utility, or (g) c ommit, s uffer or pe nnit a ny a ct t o be done i n or upon the Real P roperty o r, i f
applicable, Facility, in violation of any law, ordinance or regulation.
If th e P ublic E ntity f ails to ma intain the Real P roperty an d, i f applicable, Facility in
accordance w ith t he provisions c ontained i n t his S ection, th en th e S fate E ntity ma y p erform
whatever act s an d ex pend w hatever f unds t hat ar e n ecessary t o s o maintain the Real P roperty
and, if applicable, Facility and the Public Entity irrevocably authorizes and empowers the State
Entity to .enter upon the Real Property and, if applicable, Facility, to perform such acts as may to
necessary t o s o m aintain t he Real P roperty and, i f a pplicable, Facility. A ny a ctions t aken or
funds expended by t he S fate E ntity he reunder s hall be a t i is s ole opt ion a nd di scretion, a nd
nothing contained herein, including but not limited to this Section, shall require the State Entity
to t ake any action, i ncur a ny e xpense, or expend a ny f unds, a nd the State Entity shall not be
responsible for or liable to the Public Entity or any of her e ntity f or a ny s uch a cts t hat a re
undertaken and performed in good faith and not in a negligent manner. Any funds expended by
Generic GO Bond Proceeds 25
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
the State Entity to perform such acts as may to necessary to so maintain the Real Property and, if
applicable, Facility shall be due and payable on demand by the State Entity and bear interest from
the date of advancement by the State Entity at a rate equal to the lesser of the maximum interest
rate allowed by law or 18% per annum based upon a 365 day year.
Section 7.04 Records K eeping a nd R eporting. The P ublic E ntity s hall ma intain o r
cause to be maintained books, records, documents and other evidence pertaining to the costs or
expenses a ssociated w ith t he P roject a nd ope ration, of the Real P roperty an d, i f ap plicable,
Facility n eeded to comply with the requirements c ontained i n t his A greement, t he G .O.
Compliance Legislation, and the Commissioner's Order, and upon r equest shall allow or cause
the entity which is maintaining such items to allow the State Entity, auditors for the State Entity,
the L egislative A uditor f or t he S tate of Minnesota, or t he S tate A uditor for the State of
Minnesota, to inspect, audit, copy, or abstract, all of such items. The Public Entity shall use or
cause the entity which is maintaining such items to use generally accepted accounting principles
in the maintenance of such items, and shall retain or cause to be retained (i) all of such items that
relate to the Project for a period of 6 years from the date that the Project is fully completed and
placed into operation, and (ii) all of such items that relate to the operation of the Real Property
and, if applicable, Facility for a period of 6 years from the date such operation is initiated.
Section 7.05 Inspections by State Entity. Upon reasonable request by the State Entity
and without interfering with the normal use of the Real Property and, if applicable, Facility, the
Public Entity shall allow, and will require any entity to whom it leases, subleases, or enters into a
Use Contract for any portion of the Real Property and, if applicable, Facility to allow the State
Entity to inspect the Real Property and, if applicable, Facility.
Section 7.06 Data Practices. The Public Entity agrees with respect to any data that it
possesses r egarding t he G rant, t he P roject, or the operation of the Real P roperty a nd, i f
applicable, Facility, t o c omply w ith a 11 of the pr ovisions a nd r estrictions contained i n t he
Minnesota Government Data Practices Act contained i n C hapter 13 of t he M innesota S tatutes
that exists as of the date of this Agreement and as such may subsequently be amended, modified
or replaced from time to time.
Section 7.07 Non-Discrimination. The Public Entity agrees t o not a ngage i n
discriminatory employment practices regarding the Project, or operation or management of the
Real Property and, if applicable, Facility, and it shall, with respect to such activities, fully comply
with a 11 of the pr ovisions c ontained i n C hapters 363A and 181 of t he M innesota S tatutes that
exist as of the date of this A greement and a s s uch m ay s ubsequently be amended, m odified or
replaced from time to time.
Section 7.08 Worker's .Compensation. The Public Entity agrees to comply with all of
the provisions relating to worker's compensation contained in Minn. Stat. §§ 176.181 Subd. 2 &
176.182 that exist as of the date of this Agreement and as such may subsequently be amended,
modified o r r eplaced from time to time , w ith r espect to the Project and the operation or
management of the Real Property and, if applicable, Facility.
Generic GO Bond Proceeds 26
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
Section 7.09 Antitrust Claims. The Public Entity hereby assigns to the State Entity and
the Commissioner all claims it may have for over charges as to goods or services provided with
respect to t he P roject, a nd operation or management of the Real P roperty an d, i f ap plicable,
Facility th at arise under th e antitrust laws o f th e S tate o f M innesota o r o f the United States of
America.
Section 7.10 Review of Plans and Cost Estimates. The Public Entity agrees to comply
with all applicable provisions and requirements, if any, contained in Minn. Stat. § 16B .335 that
exists as of the date of this Agreement and as such may subsequently be amended, modified or
replaced from time to time, for the Project, and in accordance therewith the Public Entity and the
State Entity agree to comply with the following provisions and requirements if such provisions
and requirements are applicable.
A. The Public Entity shall provide all information that the State Entity may request
in order for the State Entity to determine that the Project will comply with the provisions
and r equirements.c ontained i n M inn. S tat. § 16B .335 t hat e xists as of the date of this
Agreement and as such may subsequently be amended, modified or replaced from time to
time.
B. Prior to its p roceeding w ith d esign a ctivities f or th e P roj ect th e P ublic E ntity
shall prepare a predesign package and submit it to the Commissioner of Administration for
the State of Minnesota for review and comment. The predesign package must be sufficient
to de fne t he pur pose, s cope, c ost, a nd pr ojected s chedule f or the Project, and must
demonstrate that the Project has been analyzed according to appropriate space and needs
standards. Any substantial changes to s uch predesign pa ckage m ust be s ubmitted t o the
Commissioner of Administration for the State of Minnesota for review and comment.
C. If the Project includes the construction of a new building, substantial addition to
an existing building, a substantial c hange t o t he i nterior c onfiguration of a n e xisting
building, or the acquisition of an interest in land, then the Public Entity shall not prepare
final plans and specifications until it has prepared a program plan and cost estimates for all
elements necessary to complete the Project and p resented t hem t o t he. C hairs o f t he
Minnesota State Senate Finance Committee and Minnesota House of Representatives Ways
and Means Committee and the chairs have made their recommendations, and it has notified
the Chair of the Minnesota House of Representatives Capital Investment Committee. The
program plan and cost estimates must not e a ny s ignificant c hhnges i n t he w ork t o be
performed on the Project, or in its costs, which have arisen since the appropriation from the
legislature for the Project was enacted or w hich di ffer f rom a ny pr evious pr edesign
submittal.
D. The Public Entity must notify the Chairs of the Minnesota State Senate Finance
Committee, th e M innesota House o f R epresentatives C apital I nvestment C ommittee a nd
the M innesota H ouse o f R epresentatives W ays an d M eans Committee of any significant
changes to the program plan and cost estimates referred to in Section 7.10.C.
Generic GO Bond Proceeds 2'J
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
E. The program plan and cost estimates referred to in Section 7.10.C must ensure
that the Project will comply with all applicable energy conservation standards contained in
law, including Minn. Stat. §§ 216C .19 t o 216C .20 t hat e xists a s of the da to of this
Agreement and as such may subsequently be amended, modified or replaced from time to
time, and all rules adopted thereunder.
F. If any of t he G rant i s t o be us ed f or t he c onstruction or remodeling of the
Facility, then both the predesign package referred to in Section 7.10.B and the program plan
and cost estimates referred to in Section 7.10.C must include provisions for cost-effective
information technology investments that will enable the occupant of the Facility to reduce
its n eed f or o ffice s pace, p rovide m ore o f i is s ervices electronically, and d ecentralize i is
operations.
G. If the Project does not involve the c onstruction of a ne w bui lding, s ubstantial
addition t o a n e xisting bui lding, s ubstantial c hange t o the interior configuration of an
existing building, or the acquisition of an interest inland, then prior to beginning work on
the Project the P ublic E ntity s hall ju st n otify th e C hairs o f th e M innesota S fate S enate
Finance C ommittee, t he M innesota H ouse o f Representatives Capital Investment
Committee and the Minnesota House of Representatives Ways and Means Committee that
the work to be performed is ready to begin.
H. The Project must be; (i) substantially completed in accordance with the program
plan and cost estimates referred to in Section 7.10.C, (ii) completed in accordance with the
time s chedule c ontained i n t he pr ogram pl an referred to in Section 7.10.C, a nd (iii)
completed within the budgets contained in the cost estimates referred to in Section 7.10.C.
Provided, however, the provisions and requirements contained in this Section only apply to
public lands or buildings or other public improvements of a capital nature, and shall not apply to
the demolition or d ecommissioning o f s fate a sets, h azardous ma terial p rojects, u tility
infrastructure projects, environmental t esting, parking 1 ots, e xterior 1 fighting, f encing, highway
rest a reas, tr uck s tations, s forage f acilities n of c onsisting p rimarily o f o Vices or heated work
areas, r oads, br idges, r ails, pa thways, c ampgrounds, a thletic f fields, dams, f loodwater r etention
systems, w ater acces s s fifes,harbors, s ewer s eparation p rojects, water and wastewater facilities,
.port development pr ojects f or w hich t he C ommissioner of T ransportation f or t he S fate of
Minnesota has entered into an assistance agreement under Minn. Stat. § 457A.04 that exists as of
the date of this Agreement and as such may subsequently be amended, modified or replaced from.
time to time , is e a renas, to cal g overnment p rojects w ith a construction cost of less than
$1,500,000.00, or any other capital project with a construction cost of less than $750,000.00.
Section 7.11 Prevailing Wages. The P ublic E ntity a grees to c omply w ith a 11 of the
applicable provisions contained in Chapter 177 of the Minnesota Statutes, and specifically those
provisions contained in Minn. Stat. §§ 177.41 through 177.435 that exists as of the date of this
Agreement and as such may subsequently be amended, modified or replaced from time to time
with respect to the Project and t he operation of t he G overnmental P rogram on or i n t he R eal
Property a nd, i f a pplicable, F acility. B y a greeing to th is p rovision, th e P ublic Entity is riot
Generic GO Bond Proceeds 2$
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
acknowledging or agreeing that the cited provisions apply to the Project or the operation of the
Governmental Program on or in the Real Property and, if applicable, Facility.
Section 7.12 Liability. The P ublic E ntity a nd th e S tate E ntity a gree th at they will,
subject to any indemnifications provided herein, be responsible for their own acts and the results
thereof to the extent authorized by law, and they shall not be responsible for the acts of the other
parry and the results thereof. The liability of the State Entity and the Commissioner is governed
by the provisions contained in Minn. Stat. § 3.736 that exists as of the date of this Agreement and
as s uch m ay s ubsequently b e a mended,modified or replaced from t ime t o t ime. I f t he Public
Entity is a "municipality" as s uch t erm i s us ed i n C hapter 466 of the Minnesota Statutes that
exists as of the date of this Agreement and as such may subsequently be amended, modified or
replaced from time to time, then the liability of the Public Entity, including but not limited to the
indemnification provided unde r S ection 7.13, is governed by t he pr ovisions c ontained i n s uch
Chapter 466.
Section 7.13 Indemnification by t he P ublic E ntity. The P ublic E ntity s hall b ear a Il
loss, a xpense (including a ttorneys' fees), a nd da mage i n c onnection w ith the Project and
operation of t he R eal P roperty a nd, i f a pplicable,Facility, a nd a grees t o i ndemnify a nd hol d
harmless the State Entity, the Commissioner, and the State of Minnesota, their agents, servants
and employees f rom al 1 cl aims, .demands an d j udgments m ade o r r ecovered ag ainst t he S tate
Entity, the Commissioner, a nd t he S tate of Minnesota, t heir a gents, s ervants a nd e mployees,
because of bodi ly injuries, including death at any time r esulting t herefrom, or be cause of
damages to property of the State Entity, the Commissioner, or the State of Minnesota, or others
(including loss of use) from any cause whatsoever, arising out of, incidental to, or in connection
with the Project or operation of the Real Property and, if applicable, Facility, whether or not due
to any act of omission or commission, including negligence of the Public Entity or any contractor
or his or their employees, servants or agents, and whether or not due to any act of omission or
commission (excluding, however, negligence or breach of statutory duty) of the State Entity, the
Commissioner, or the State of Minnesota, their employees, servants or agents.
The P ublic E ntity f urther agrees t o i ndemnify, s ave, a nd hol d t he S tate E ntity, t he
Commissioner, and the State of Minnesota, their agents and employees, harmless from all claims
arising out of, resulting from, or in any manner attributable to any violation by the Public Entity,
its officers, employees, or agents, or by any Counterparry, its officers, employees, or agents, of
any pr ovision of t he M innesota G overnment D ata P ractices A ct, including legal fees and
disbursements paid or incurred to enforce the provisions contained in Section 7.06.
The Public Entity's liability hereunder shall not be limited to the extent of insurance carried
by or provided by the Public Entity, or subject to any exclusions from coverage in any insurance
policy.
Section 7.14 Relationship o f t he P artier. Nothing c ontained i n t his A greement i s
intended or should be construed in any manner as creating or establishing the relationship of co-
partners or a joint venture between the Public Entity, the State Entity, or the Commissioner, nor
shall the Public Entity be considered or deemed to be an agent, representative, or employee of
Generic GO Bond Proceeds 29
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
either the State Entity, the Commissioner, or the State of Minnesota in the performance of this
Agreement, the Project, or operation of the Real Property and, if applicable, Facility.
The Public Entity represents that it has already or w ill s ecure o r cau se t o b e s ecured al 1
personnel required for the performance of this Agreement and the Project, and the operation and
maintenance of the Real Property and, if applicable, Facility. All personnel of the Public Entity
or other persons while e ngaging i n t he pe rfortnance of t his A greement, t he P roject, or t he
operation and m aintenance of the Real P roperty an d, i f ap plicable, Facility s hall n of h ave a ny
contractual relationship with either the State Entity, the Commissioner, or the State of Minnesota
and shall not be considered employees of any of such entities. In addition, all claims that may
arise on behalf of s aid personnel or other persons out of employment or a lleged e mployment
including, but not 1 imited t o, c laims unde r t he W orkers' Compensation A ct of t he S fate of
Minnesota, claims of discrimination against the Public Entity, its officers, agents, contractors, or
employees shall in no way be the responsibility of either the State Entity, the Commissioner, or
the State of Minnesota. Such personnel or other persons shall not require nor be entitled to any
compensation, rights or benefits of a ny ki nd w hatsoever f rom e ither t he S fate E ntity,the
Commissioner, or the State of Minnesota including, but not limited to, tenure rights, medical and
hospital care, sick and vacation leave, disability benefits, severance pay and retirement benefits.
Section 7.15 Notices. In addition to any notice required under applicable law to be given
in another manner, any notices required hereunder must be in writing and shall be sufficient if
personally served or sent by prepaid, registered, or certified mail (return receipt requested), to the
business address of the party to whom it is directed. Such business address shall be that address
specified below or such different address as may hereafter be specified, by either party by written
notice to the other:
To the Public Entity at:
City of Richfield
6700 Portland Avenue
Richfield, MN 55423
Attention: Steven Devich, City Manager
To the -State Entity at:
Department of Administration
50 Sherburne Avenue, Room 200
Saint Paul, MN 55155
Attention: Financial Management Director
To the Commissioner at:
Minnesota Management and Budget
400 Centennial Office Bldg.
658 Cedar St.
Generic GO Bond Proceeds 30
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
St. Paul, MN 55155
Attention: Commissioner
Section 7.16 Binding E ffect a nd A ssignment o r M odification. This Agreement an d
the Declaration shall be binding upon and inure to the benefit of the Public Entity and the State
Entity, and their respective successors and assigns. Provided, however, that neither the Public
Entity nor the State Entity may assign any of its rights or obligations under this Agreement or the
Declaration without the prior written consent of the other party. No .change or modification of
the terms or provisions of this Agreement or the Declaration shall be binding on either the Public
Entity or the State E ntity unl ess s uch c hange or m odification i s i n w riting a nd s igned by a n
authorized official of the party against which such change or modification is to be imposed.
Section 7.17 Waiver. Neither th e f ailure b y th e P ublic E ntity, the State Entity, or the
Commissioner, as a third party beneficiary of this Agreement, in any one or more instances to
insist upon the complete and total observance or performance of any term or provision hereof,
nor th o f ailure o f th e P ublic E ntity, th e S tate Entity, or the Commissioner, a s a t hird party
beneficiary of this Agreement, to exercise any right, privilege, or remedy conferred hereunder or
afforded by law shall be construed as waiving any breach of such term, provision, or the right to
exercise such right, privilege, or remedy thereafter. In addition, no delay on the part of either the
Public E ntity, th e S tate E ntity, o r the Commissioner, a s a third pa rty be neficiary of this
Agreement, in exercising any right or remedy hereunder shall operate as a w giver thereof, nor
shall an y s Ingle o r p artial ex ercise o f an y r fight o r remedy preclude other or further exercise
thereof or the exercise of any other right or remedy.
Section 7.18 Entire Agreement. This Agreement, the Declaration, and the documents,
if any, referred to and incorporated herein by reference embody the entire agreement between the
Public E ntity a nd th e S tate Entity, a nd t here a re no of her a greements, e ither or al or written,
between the Public Entity and the State Entity on the subject matter hereof.
Section 7.19 Choice of Law an d V enue. All ma tters r elating to th e v alidity,
construction, pe rformance, or e nforcement o f th is A greement o r th e D eclaration s hall b e
determined in accordance with the laws of th e S tate o f M innesota. A 11 legal actions initiated
with respect to or arising from any provision contained in this Agreement shall be initiated, filed
and ve nued i n the S tate of M innesota D istrict C ourt 1 ocated i n the C ity of St. Paul, County of
Ramsey, State of Minnesota.
Section 7.20 Severability. If any provision of this Agreement is finally judged by any
court to be invalid, then the remaining provisions shall remain in full force and effect and they
shall be interpreted, performed, and enforced as if the invalid provision did not appear herein.
Section 7.21 Time of Essence. Time is of the essence with respect to all of the matters
contained in this Agreement.
Generic GO Bond Proceeds 31
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
Section 7.22 Counterparts. This Agreement may be ex ecuted i n an y n umber o f
counterparts, each of which w hen s o e xecuted a nd de livered s hall be a n or iginal, but such
counterparts shall together constitute one and the same instrument.
Section 7.23 Matching Funds. The Public Entity must obtain and supply the following
matching funds, if any, for the Project:
According to the legislation the total cost of the project was $711,500, with the city (Richfield)
and nonprofit organizations contributing $611,500. The appropriation was contingent on at least
an equal amount being committed from nonstate sources.
The revised total project costs are $351,900 with $251,900 funded by nonprofit organizations and
the Public Entity.
Any matching funds which are intended t o m eet t he a bove r equirements must e ither b e in th e
form of (i) cash monies, (ii) legally binding commitments for money, or (iii) equivalent funds or
contributions, including equity, w hich have been or will be us ed t o pa y f or t he P roject. The
Public Entity shall supply to the Commissioner whatever documentation the Commissioner may
request to substantiate the a vailability a nd s ource of a ny m atching f unds, a nd t he s ource a nd
terms relating to all matching funds must be consented to, in writing, by the Commissioner.
Section 7.24 Source and Use of Funds. The Public Entity represents to the State Entity
and the Commissioner that Attachment III to this Agreement is intended to be and is a source
and use of funds statement s howing t he t otal c ost of t he P roject a nd a 11 of t he f unds t hat a re
available f or.t he c ompletion of t he P roject, a nd t hat t he information contained in such
Attachment III correctly and accurately delineates the following information.
A. The to tal c ost o f th e P roject d etailing a 11 o f the major elements that make up
such total cost and how much of such total cost is attributed to each such major element.
B. The source of all funds needed to complete the Project broken down amongst
the following categories:
(i) State funds including the Grant, identifying the source and amount and of
such funds.
(ii) Matching funds, identifying the source and amount of such funds.
(iii) Other f unds s upplied by t he P ublic E ntity, i dentifying the source a nd
amount of such funds.
(iv) Loans, i dentifying e ach s uch 1 oan, t he e ntity pr oviding t he loan, t he
amount of each s uch I oan, t he terms a nd c onditions of e ach s uch loan, and all
collateral pledged for repayment of each such loan.
(v) Other funds, identifying the source and amount of such funds.
Generic GO Bond Proceeds 32
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
C. Such other financial i nformation t hat i s ne eded t o co rrectly r effect t he t otal
funds available for the completion of the Project, the source of such funds and the expected
use of such funds.
Previously paid project expenses may only be included as a source of funds and included in
Attachment III if such items have been approved, in writing, by the Commissioner.
If a ny of t he f unds included under the source of funds ha ve c onditions pr ecedent t o t he
release of s uch f unds, t hen t he P ublic E ntity m ust pr ovide t o t he State Entity .and the
Commissioner a detailed description of such conditions and what is being done to satisfy such
conditions.
The Public Entity shall also supply whatever other information and documentation that the
State E ntity o r th e Commissioner may request to support or e xplain a ny of the i nformation
contained in Attachment III to this Agreement.
The value of the Public Entity's ownership interest in the Real Property and, if applicable,
Facility should only be shown in Attachment III to this Agreement if such ownership interest is
being a cquired a nd pa id f or w ith f unds s hown in such Attachment I II, a nd f or a 11 of her
circumstances such value should be shown in the definition for Ownership Value in Section 1.01
and not included in such Attachment III.
Section 7.25 Third-Party B eneficiary. The Governmental P rogram w ill b enefit the
State of Minnesota and the provisions and requirements contained herein are for the benefit of
both t he S tate E ntity a nd t he S tate of Minnesota. T herefore, t he S tate of Minnesota, by and
through its Commissioner,. is and shall be a third-party beneficiary of this Agreement.
Section 7.26 Public E ntity T asks. Any t asks t hat t his A greement i mposes upon t he
Public Entity may be performed by such other entity as the Public Entity may select or designate,
provided that the failure of such other entity to perform said tasks shall be deemed to be a failure
to perform by the Public Entity.
Section 7.27 State E ntity a nd Commissioner Required A cts a nd A pprovals. The
State Entity and the Commissioner shall not (i) perform any act herein required or authorized by
it i n a n unr easonable m anner, (ii) unr easonably r efuse t o pe rform a ny a ct t hat i t is required to
perform he reunder, or (iii) unr easonably r efuse t o pr ovide or w ithhold a ny a pproval that is
required of it herein.
Section 7.28 Applicability to Real Property and Facility. This Agreement applies to
the Public Entity's interest in the Real Property and if a Facility exists to the Facility. The term
"if applicable" appearing in c onjunction w ith the term "Facility" is meant to indicate that this
Agreement will apply to a Facility if one exists, and if no Facility exists then this Agreement will
only apply to the Public Entity's interest in the Real Property.
Generic GO Bond Proceeds 33
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
Section 7.29 Additional Requirements. The Public Entity and the State Entity agree to
comply with the following additional requirements. I.n the event of any conflict or inconsistency
between the following additional requirements and any other provisions or requirement contained
in this Agreement, the following additional requirements contained in this Section shall control.
The City of Richfield may request .reimbursement for grant expenditures that were incurred
following the final date of e nactment of t he L aws of 2008, C hapter 179 a nd be fore
execution of the grant agreement.
[THE REMAINING PORTION OF THIS PAGE WAS INTENTIONALLY LEFT BLANK]
Generic GO Bond Proceeds 34
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
IN TESTIMONY IIEREOF, the Public Entity and the State Entity have
executed this General Obligation Bond Proceeds Grant Agreement End Grant for All Veterans
Memorial -Richfield. MN Project on the day and date indicated immediately below their
respective signatures.
PUBLIC ENTITY:
The City of Richfield,
a Home Rule Charter City
By: Debbie Goettel
Its: Ma o~
Dated: ,
And: Steven Devich
Its: Cit~ger
Dated:
STATE ENTITY:
The Department of Administration ;
By:
Lenora Madigan
Its: Financial Management Director
Dated:
Generic GO Bond Proceeds 35
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
Attachment I to Grant Agreement
DECLARATION
The undersigned has the following interest in the real property legally described in Exhibit
A attached and all facilities s ituated t hereon (cumulatively r eferred t o as the "Restricted
Property"):
(Check the appropriate box.)
X^ a fee simple title,
a lease, or
an easement,
and as o caner o f s uch f ee t itle, l ease o r eas ement, d oes h ereby d eclare t hat s uch i nterest i n t he
Restricted Property is hereby made subject to the following restrictions and encumbrances:
A. The Restricted Property is bond f financed property within the meaning of
Minn. S tat. § 16A .695 t hat e xists as of the effective date o f the g rant
agreement identified i n B he reinbelow, i s s ubject t o t he e ncumbrance
created and requirements unposed by such statutory provision, and cannot
be sold or otherwise disposed of by the public officer or agency which has
jurisdiction over it or owns it without the approval of the commissioner of
the Minnesota Management an d B udget, which approval m ust be
evidenced b y a w ritten s tatement s igned by said commissioner and
attached to the deed or instrument used to sell or otherwise dispose of the
Restricted Property; and
B. The Restricted P roperty i s s ubject t o a 11 of t he t erms, c onditions, pr ovisions, a nd
limitations contained i n t hat c ertain General O bligation B and P roceeds Grant
Agreement -End Grant FOR THE ALL VETERANS MEMORIAL PROJECT -
RICHFIELD , MN BETWEEN CITY OF RICHFIELD AND T HE
DEPARTMENT OF ADMINISTRATION ,DATED ,
The Restricted Property shall remain subject to such restrictions and encumbrances until it
is r eleased therefrom by way of a written release in r ecordable f orm s igned by bot h t he
Department of Administration and the commissioner of the Minnesota Management and Budget,
and such written release is recorded in the real estate records relating to the" Restricted Property.
This Declaration may not be t erminated, a mended, or i n a ny w ay m odified w ithout t he
specific written consent of the commissioner of the Minnesota Management and Budget.
Generic GO Bond Proceeds 36
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
.Exhibit A to Declaration
LEGAL DESCRIPTION OF RESTRICTED PROPERTY
Tract C, Registered Land Survey No 476, Hennepin County, MN
Generic GO Bond Proceeds 37
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
Attachment II to Grant Agreement
LEGAL DESCRIPTION OF REAL PROPERTY
Tract C, Registered Land Survey No 476, Hennepin County, MN
~~~2
_.~~
~~~~
-::~; n
1 = _, -~ ~ ~ ~, ~_. 7 7
r' ,, ~
a `
~ cz~. s
r~ E 1~- 1~ afl ~~~ ~;~-_1?
~ - -
~ ~~
~::,~ ~~
r~
`r-
J~
~~
--
i
~ ~,
~,
~~ -
_
_ ~,
E
~:~
,~
~~~~
~.~~
Generic GO Bond Proceeds 38
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
LEGAL DESCRIPTION OF REAL PROPERTY MAP
Pi
~.
-c, __ ate. r,
~ , i"
~`~ ,~
- ~ __ ~t
i'~
L I ~.
try
~£ F i'Z3 ~ ~..
F ~1 ~ M L
- ..~.
_. Z
~ i
._ _ ~z ~~
_~ rYi
~ ~~
L
Generic GO Bond Proceeds ~ 39
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
Entity SuLA Y g ~
__._._...---......-----._._....-----
i
State Funds
State GO Grant ~ $100,000.00
State GF Grant $
-
--
--
---------
Other _
_
_
_
_
..
~
--- -- ----- -------
---~-
--------------
Sub-Total $ 100 000 00
Matchin Funds
Honoring A 11 V eterans
Memorial, Inc. $236,900.00
__ __ _
Sub Total $336,900.00
Other Public Entice Funds
City of Richfield j $15,000.00
------------------ -~ ._......... $15,000.00--
Sub-Total
_ Loans
Sub-Total. $---------- --
Other Funds $--------------
Sub-Total - $---- --- -
Prepaid Project Ex enses
------------------
- -- -
--------------
Sub-Total _ _ _ __
$- ----- - --
TOTAL FUNDS $ 351,900.00
Attachment III to Grant Agreement
SOURCE AND USE OF FUNDS FOR THE PROJECT
Source of Funds Use of Funds
1 in Funds Amount Identity of Items ~
Amount
Ownership Acquisition ____ ______..._________-._.
and Other Items Paid for
with GO Grant Funds
Purchase of Ownership y __ . $100,000_00
Interest _ _
_ Other Items of a Capital __ ___ - _
Nature
Sub Total $100,000.00
Items_Paid_fo_r with
_ _
_ NonYGO Grant Funds___ _
- __ _ _
$251,900.00_V
-----
Sub Total $251,900.00
TOTAL PROJECT $351,900.00
COSTS
Generic GO Bond Proceeds 40
Grant Agreement for End Grants (Gnrc GO GA-End Grnt)
August 18, 2009
AGENDA SECTION:
AGENDA ITEM #
REPORT #
J
STAFF REPORT
CITY COUNCIL MEETING
JUNE 22, 2010
CONSENT.
6B
109
REPORT PREPARED BY:
DEPARTMENT DIRECTOR
REVIEW:
REVIEWED BY CITY
MANAGER:
BRAD SVEUM, FIRE SERVICES
DIRECTOR
NAME, TITLE
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a resolution accepting a grant of $305,119 from the U.S. Department of
Homeland Security, 2009 Staffing for Adequate Fire Emergency Response (SAFER) grant
program to the Richfield Fire Department.
I. RECOMMENDED ACTION:
By Motion: Approve the resolution accepting the grant of $305,119
from the U.S. Department of Homeland Security, 2009 Staffing for
Adequate Fire and Emergency Response (SAFER) grant program.
II. BACKGROUND
~mce rune 1uuy, the t-ire uepartment has held two vacant Firefighter positions
open. In order to maintain a six person minimum daily staffing level significant
overtime costs have been incurred due to these vacancies.
Beginning in 2005, the U.S. Department of Homeland Security (DHS) has had a
grant program to fund Firefighter- positions. In 2.009, due to economic
,circumstances across the nation, DHS has changed their criteria for evaluating
Firefighter funding grant requests allowing funds to be used to fill previously
authorized but unfunded positions. Fire Department staff applied for this highly
competitive grant and were recently notified that Richfield had been awarded the
grant.
This grant of $305,119 will pay all wage and benefit costs associated with hiring two
Firefighters for 24 months. At the same time, the overtime budget for the Fire
Department can be reduced approximately $135,000 each year. This is a
0622SAFER
significant reduction of the overall Fire Department budget compared to the 2010
adopted budget.
III. BASIS OF RECOMMENDATION
A. POLICY
• Minnesota Statute 465.03 requires acceptance of a grant or devise of
real or personal property of more than atwo-thirds majority of the City
Council
• The Administrative Services Department issued a memo on
November 9, 2004 requiring that all grants and restricted donations to
departments be received by resolution and by more than two-thirds
majority of the City Council in accordance with Minnesota Statute
465.03.
B. CRITICAL TIMING ISSUES
• This grant aids in reducing general fund expenditures by paying the
full personnel costs for two new Firefighters for two years. The two
Firefighters will also reduce Fire Department overtime expenditures
approximately $135,000 for each of the two years of the grant
program.
• This years Minnesota State Legislature passed special legislation
authorizing the City of Richfield to impose a residency response time
requirement for new Firefighters. Personnel hired under this grant will
be required to live within a 10 minute response time of one of the fire
stations which will improve emergency callback .capabilities.
C. FINANCIAL
• This grant will provide significant financial relief to the general fund
budget for twenty-four months. There is no matching requirement on
the City of Richfield's part in receiving this grant.
D. _ LEGAL
• Minnesota Statute 465.03 requires acceptance of a grant or devise of
real or personal property of ore than two-thirds majority of the City
Council.
E. ENVIRONMENTAL CONSIDERATIONS
• None
IV. ALTERNATIVE RECOMMENDATION(S~
Decline to accept the grant however staffing for the current service level will
be financially challenging.
V. ATTACHMENTS
• Resolution
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
~~-1
RESOLUTION NO.
RESOLUTION AUTHORIZING ACCEPTANCE OF THE US DEPARTMENT OF
HOMELAND SECURITY, STAFFING FOR ADEQUATE FIRE EMERGENCY RESPONSE
(SAFER) GRANT, (EMW-2009-FH-00130) IN THE AMOUNT OF $305,119, AND TO
AUTHORIZE THE CITY TO ADMINISTER THE FUNDS IN ACCORDANCE WITH THE
GRANT AGREEMENTS AND TERMS PROSCRIBED BY THE DONORS
WHEREAS, Minnesota Statute 465.03 reads in part as follows;
Any city, county, school district or town may accept a grant or devise of real
property and maintain such property for the benefit of its citizens in accordance with the
terms proscribed by the donor. Nothing herein shall authorize such acceptance or use for
religious or sectarian purposes. Every acceptance shall be by resolution of the council
adopted by two-thirds majority of its members, expressing such terms in full, and
WHEREAS, the City of Richfield has been awarded the grant as described below,
US Department of Homeland Security, Staffing for Adequate Fire Emergency
Response (SAFER) Grant, (EMW-2009-FH-00130) in the amount of $305,119.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield,
Minnesota, as follows:
That the City Council of the City of Richfield hereby accepts the US Department of
Homeland Security, Staffing for Adequate Fire Emergency Response (SAFER) Grant
(EMW-2009-FH-00130) in the amount of $305,119for the year 2010 and authorizes the
City to administer the funds in accordance with the grant agreements and terms proscribed
by the donors.
Adopted by the City Council of the City of Richfield, Minnesota this 22nd day of
June, 2010.
Debbie Goettel, Mayor
ATTEST:
Nancy Gibbs, City Clerk
AGENDA SECTION: CONSENT
AGENDA ITEM # ( C
REPORT # j j Q
J
STAFF REPORT
CITY COUNCIL MEETING
JUNE 22, 2010
REPORT PREPARED BY:
REVIEWED BY CITY
MANAGER:
CHERYL KRUMHOLZ, EXECUTNE
COO INATOR
NAME, TITLE
....
ITEM FOR COUNCIL CONSIDERATION:
Consideration of August 2010 Council meetings.
I. RECOMMENDED ACTION:
By Motion: Approve the following City Council Meetings in the
Council Chambers:
• Reschedule the Regular City Council Meeting on Tuesday,
August 10, 2010 at 7 p.m. to Monday, August 9, 2010 at 7 p.m.;
and
• Schedule a Special City Council Meeting on Friday, August 13,
2010 at 8 a.m._ to canvass the August 10 Primary Election.
II. BACKGROUND
The State Primary will be held on Tuesday August 10, 2010, which is also the date
of the Regular City Council Meeting. MN Statute 204C.03, subd. 1 states no public
meetings or school events may be held between 6:00 p.m. and 8:00 p.m. on a day
that an election is held within the city. Therefore, staff is requesting the meeting be
held on Monday, August 9, 2010 at 7 p.m.
Also, because the City has three candidates who have filed for Council Member At-
Large, aprimary election is necessary. Minn. Stat. 205.065, subd. 5 require the
canvassing of the primary election be on Friday August 13, 2010. A Special City
Council Meeting is necessary to fulfill this statutory requirement.
III. BASIS OF RECOMMENDATION
A. POLICY
• Regular City Council Meetings are held on the second and fourth
Tuesdays of each month.
B. CRITICAL TIMING ISSUES
• There are items to be considered in early August so the Regular City
Council Meeting should be held on August 9, 2010.
• MN Statute requires the canvassing of the primary election on Friday,
August. 13, 2010.
C. FINANCIAL
• N/A
D. LEGAL
• MN Statute 204C.03, subd. 1 states no public meetings or school
events may be held between 6:00 p.m. and 8:00 p.m. on a day that an
election is held within the city.
• Minn. Stat. 205.065, subd. 5 require the canvassing of the primary
election be on Friday August 13, 2010.
E. ENVIRONMENTAL CONSIDERATIONS
• N/A
IV. ALTERNATIVE RECOMMENDATION(S~
• The City Council could conduct the Regular City Council Meeting on
Wednesday, August 11, 2010 at 7 p.m.
• The City Council could choose a different start time for the Friday, August 13,
2010 Special Council Meeting.
V. ATTACHMENTS
• None
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
AGENDA SECTION: CONSENT
AGENDA ITEM # C)D
REPORT # 111
STAFF REPORT
CITY COUNCIL MEETING
JUNE 22, 2010
REPORT PREPARED BY:
BETSY OSBORN, SUPPORT SERVICES
DIVISION MANAGER
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY CITY MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of an annual request for a temporary on-sale 3.2 percent malt liquor license for
activities scheduled to take place July 4, 2010 for the Minneapolis-Richfield American Legion
Post 435, 6501 Portland Avenue.
I. RECOMMENDED ACTION:
By Motion: Approve a temporary on-sale 3.2 percent malt liquor
license for the Minneapolis-Richfield American Legion Post 435, 6501
Portland Avenue, Fourth of July activities scheduled to take place
July 4, 2010.
II. BACKGROUND
On May 19, 2010, the Minneapolis-Richfield American Legion Post 435 submitted
their annual request for a temporary license to serve on-sale 3.2 percent malt liquor
for the Fourth of July activities. The required licensing fees have been received.
This request is in conjunction with the Richfield Fourth of July Celebration and has
been organized by the Fourth of July Committee. Their plans are to have an open
house and community dance outside on their property and they would like to serve
refreshments, including beer. Their food menu will consist of items such as hot
dogs, hamburgers, sloppy Joes, brats, corn, french fries, ice cream, cookies, candy,
soda, and water.
0622 American Legion Fourth of July Liquor License
Licensing requirements for the preparation and service of food for this event is
covered under the Minneapolis-Richfield American Legion's annual food license.
The applicant has contacted food sanitarians from the City of Bloomington to ensure
that proper food handling practices are followed. They will work with Bloomington
sanitarians and follow their recommendations for safe and wholesome food
handling.
Their current liquor license is only valid for the serving of alcohol within the
establishment and does not cover the exterior serving. Proof of liquor liability
insurance coverage, to cover the exterior of their property, has been provided
showing Integrity Mutual Insurance Company affording the coverage.
Richfield Public Safety staff members have spoken with management from the
American Legion to address some specific Public Safety issues and concerns. As a
condition of the approval of their license, it was decided that Portland Avenue will be
closed from 8:30 p.m. to 12:00 Midnight. In addition, 66th street will also be shut
down between the hours of 8:30 p.m. to 11:30 p.m. No through traffic will be
allowed on 66th Street and Portland Avenue and all traffic will be routed away from
the event. American Legion patrons will be allowed to enter the Legion parking lot
until approximately 8:30 p.m. when Portland Avenue closes. Patrons will not be
allowed to leave the Legion parking lot after 8:30 p.m. All patrons parked in the lot
at 8:30 p.m. will be required to remain in the lot until 11:15 p.m. when all pedestrian
traffic is clear on Portland Avenue. ONLY cabs and limos that are contracted with
the Legion to provide sober cab services will be allowed to access the site from
Portland after 8:30 p.m. These vehicles will have placards provided to them by the
American Legion to identify their right to enter. At 11:15 p.m. when patrons are
allowed to exit the American Legion lot, they will be routed southbound on Portland
Avenue and westbound on 66th Street. Also, vehicles that are parked at the ice
arena will be instructed that they need to remain in place until 11:15 p.m. All
residents living on 66th Street and Portland Avenue will be allowed entrance onto
these streets.
III. BASIS OF RECOMMENDATION
A. POLICY
• The applicant has complied with the City codes pertaining to a
temporary on-sale 3.2 percent malt liquor license.
• The City has previously issued temporary on-sale 3.2 percent malt
liquor licenses in conjunction with the Fourth of July Celebration.
B. CRITICAL TIMING ISSUES
• That the sale of 3.2 percent malt liquor cease no later than midnight.
• The applicant has hired a professional security organization to
oversee all hours of operation for this event.
• American Legion customers will not be allowed to exit the site after
8:30p.m.
Limousine and taxi companies contracted by the American Legion to
provide sober cab services will be allowed to access the site from
Portland Avenue after 8:30p.m.
C. FINANCIAL
• N/A
D. LEGAL
• N/A
E. ENVIRONMENTAL CONSIDERATIONS
• N/A
IV. ALTERNATIVE RECOMMENDATION~S~
• Deny the request for a temporary 3.2 percent malt liquor license. This would
result in the applicant not being able to conduct activities, especially those
concerning the temporary sale of 3.2 percent malt liquor, in conjunction with
the Fourth of July Celebration. However, the Public Safety Department has
not found any basis for denial
V. ATTACHMENTS
• N/A
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Roger Wysong, Legion Manager, has been notified of the date for Council
consideration of this request.
AGENDA SECTION: CONSENT
AGENDA ITEM # 6E
REPORT # 112
~~' STAFF REPORT
CITY COUNCIL MEETING
JUNE 22, 2010
REPORT PREPARED BY:
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY CITY MANAGER:
r~
BETSY OSBORN, SUPPORT SERVICES
DIVISION MANAGER
NAME, TITLE
ITEM FOR COUNCIL CONSIDERATION:
Consideration of an annual request for a community celebration event license and a temporary
on-sale 3.2 percent malt liquor license, with a request for a fee waiver, for the Fourth of July
Committee for events scheduled to take place at Veterans Memorial Park, July 1 through July
6. 2010.
I. RECOMMENDED ACTION:
By Motion: Approve the following for the annual Fourth of July
celebration, July 1 through 6, 2010.
1. A community celebration event license, and
2. A temporary on-sale 3.2 percent malt liquor license, and
3. A fee waiver, for the Fourth of July Committee for the events
taking place throughout Richfield on the above dates.
II. BACKGROUND
Each year the Fourth of July Committee makes application for a community
celebration event license and requests that the community celebration fee of $5,000
be waived for the activities that take place throughout the City for this celebration.
This year's celebration is scheduled to take place July 1 through July 6, 2010.
As in-the past, they have also included a request for a temporary on-sale 3.2
percent malt liquor license which would allow them to serve beer and wine coolers
at Veterans Memorial park during the July 3rd activities. A copy of the liquor liability
insurance has been provided.
0622 Fourth of July Committee Licenses
A detailed activity plan of the days' events is currently on file.
The food concessions will be staffed by members of various organizations, most of
which have been with the committee since the celebration began.
The committee has contacted food sanitarians from the City of Bloomington to
ensure that proper food handling practices are followed. They will work with
Bloomington sanitarians and follow their recommendations for safe and wholesome
food handling. In addition, each individual concessionaire has been approved by
Monica Loye of the Bloomington Food Inspection Division.
All fees for each professional concession have been received
~ III. BASIS OF RECOMMENDATION
A. POLICY
• The applicant has complied with all of the provisions of the City
application process and meets the requirements for fee waiver.
B. CRITICAL TIMING ISSITES
• Public Safety Police Officers have been hired by the Fourth of July
Committee to patrol the area for this event.
C. FINANCIAL
• N/A
D. LEGAL
• N/A
E. ENVIRONMENTAL CONSIDERATIONS
• N/A
IV. ALTERNATIVE RECOMMENDATION(S~
• Deny the request for a community celebration event license and a temporary
on-sale 3.2 percent malt liquor license. This would result in the applicant not
being able to conduct activities, especially those concerning food preparation
and temporary on-sale 3.2 percent malt liquor sales, on July 1 through July 6,
2010.
V. ATTACHMENTS
• None
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Melissa Barns and Richard Jabs of the Fourth of July Committee have been
notified of the date for Council consideration of this request.
AGENDA SECTION:
AGENDA ITEM #
REPORT #
~- STAFF REPORT
CITY COUNCIL MEETING
JUNE 22, 2010
OTHER BIISINESS
113
REPORT PREPARED BY: CHRIS REGIS, FINANCE MANAGER
NAME, TITLE
DEPARTMENT DIRECTOR
REVIEW:
SIGN RE
REVIEWED BY CITY
MANAGER: ~ !~
ITEM FOR COUNCIL CONSIDERATION:
Receipt of the City of Richfield Comprehensive Annual Financial Report (CAFR) for the fiscal
year ended December 31, 2009.
I. RECOMMENDED ACTION:
By Motion: Accept the Comprehensive Annual Financial Report of the
City for the year ended December 31, 2009.
II. BACKGROUND .
The City's auditing firm, Malloy, Montague, Karnowski, Radosevich, & Co., P.A.
(MMKR), has completed the annual audit of the City's financial records for the fiscal
year ended December 31, 2009. As part of the audit, MMKR has issued an
unqualified opinion on the City's financial statements for the year ending December
31, 2009. A representative of MMKR is present tonight to make a brief presentation
on the 2009 financial information and answer questions.
In addition, the CAFR will be submitted to the State of Minnesota pursuant to State
law and to the Government Finance Officers Association for the Certificate of
Achievement for Excellence in Financial Reporting program.
III. BASIS OF RECOMMENDATION
0622CAFRReceipt
A. POLICY
• Action to be taken at the June 22, 2010 City Council meeting is the
official receipt of the December 31, 2009 City of Richfield
Comprehensive Annual Financial Report by the City Council.
• The City's auditor has performed an audit of the City's financial
records for the year ended December 31, 2009 and prepared reports
to the City Council concerning legal compliance and internal controls.
B. CRITICAL TIMING ISSUES
• Action on this item is requested at the June'22, 2010 City Council
meeting.
C. FINANCIAL
• N/A
D. LEGAL
• The CAFR will be submitted to the State of Minnesota, pursuant to
State law.
E. ENVIRONMENTAL CONSIDERATIONS
• In an effort to reduce paper costs, the 2009 CAFR, 2009 HRA
Financial Report will be delivered to the Council in the form of a CD-
ROM.
IV. ALTERNATIVE RECOMMENDATION(S~
• The City Council could ask the auditors for further explanations of their
findings at a future Study Session.
V. ATTACHMENTS
• None.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Bill Lauer, Principal, Malloy, Montague, Karnowski, Radosevich, & Co., P.A.
CITY OF RICHFIELD, MINNESOTA
Office of City Manager
June 17, 2010
Council Memorandum No. 96
The Honorable Mayor
and
Members of the City Council
Subject: Hennepin County 2010 Wellness by Design Award
(Council Agenda Item No. 9)
Council Members:
The City of Richfield has been named a recipient of Hennepin County's 2010 Wellness.
by Design Worksite Award. The award honors Hennepin County worksites that have
met specific criteria in promoting safe and healthy lifestyles.
The City of Richfield was one of 67 worksites honored at a June 17 awards ceremony.
The Wellness by Design Award is given to organizations that demonstrate
accomplishments in wellness infrastructure, management support, assessment and
evaluation, supportive environments, and communication and engagement programs.
Platinum, gold, silver and bronze levels are awarded. Richfield has been an award
recipient all five years of the program. This year, Richfield's "Live Healthy * Live Happy"
Employee Wellness Program attained the silver level.
The City's Wellness Program encourages employees to focus on nutrition, lifestyle and
physical activity. Healthy employees not only feel better but also are more productive
and less costly to insure.
Resp`~ctful~i sub
~~den . ue~
City M Hager
SLD:ds
E-mail: Department Directors
Assistant to the City Manager