07-26-2022 City Council AgendaR EG U LAR C IT Y C O U N C IL MEET IN G
R IC H F IE L D MU N IC IPAL C E N TE R, C O U N C IL C H AMB E R S
J U LY 26, 2022
7:00 P M
IN TR O D U C TO RY P R O C E E D IN G S
C all to order
P ledge of A llegiance
Open forum
E ach speaker is to keep their comment period to three minutes to allow sufficient time for others. C omments
are to be an opportunity to address the C ouncil. P lease refer to the C ouncil A genda & M inutes web page for
additional ways to submit comments. You may also call 612-861-9711 or email kwynn@richfieldmn.gov with
questions. C all into the open forum by dialing 1-415-655-0001 U se webinar access code: 2454 528 1902 and
password: 1234.
E ach speaker is to keep their comment period to three minutes to allow sufficient time for others. C omments
are to be an opportunity to address the C ouncil on items not on the agenda. I ndividuals who wish to address
the C ouncil must have registered prior to the meeting.
A pprove the Minutes of the: (1) S pecial C losed C ity C ouncil S ession of J uly 12, 2022; and (2) Regular C ity C ouncil
Meeting of J uly 12, 2022.
AG E N D A APPR O VAL
1.A pproval of the A genda
2.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 on these items 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 .C onsider approval of the amended rental agreement between the C ity of Richfield and the M N W hitecaps
P rofessional Women's hockey team for use of a locker room, ice time for practices and games,
concessions, and alcohol sales.
S taff Report No.106
B .C onsider approval of the establishment of a Recreation S pecial Revenue F und for the S ustainability
P rogram that includes organized collection.
S taff Report No. 107
C .A pproval of the first reading of an ordinance amending the term of the E xisting F ranchise A greement from
A ugust 1, 2022, to January 31, 2023, and schedule a second reading for A ugust 10, 2022.
S taff Report No. 108
3.C onsideration of items, if any, removed from C onsent C alendar
C IT Y MAN AG E R’S R E P O R T
4.C ity Manager's Report
C LAIMS AN D PAYR O L LS
5.C laims and P ayroll
C O U N C IL D ISC U SSIO N
6.Hats Off to Hometown Hits
7.A djournment
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 COUNCIL MEETING MINUTES
Richfield, Minnesota
Special Closed City Council
Meeting
July 12, 2022
CALL TO ORDER
The special closed meeting was called to order by Mayor Regan Gonzalez at 5:45 p.m. in the
Babcock Room.
Council Members
Present:
Maria Regan Gonzalez, Mayor; Mary Supple; Simon Trautmann (5:46); Sean
Hayford Oleary
Council Members
Absent:
Ben Whalen
Staff Present: None
ITEM #1
CONDUCT A PERFORMANCE EVALUATION OF CITY MANAGER KATIE
RODRIGUEZ, PURSUANT TO MINN. STAT. 13D.05, SUBD. 3(A).
The Special Closed Session was conducted pursuant to Minnesota State Statute 13D.05,
subd. 3(a).
ADJOURNMENT
The special closed meeting was adjourned by unanimous consent at 5:55 p.m.
Date Approved: July 26, 2022
Maria Regan Gonzalez
Mayor
Kari Sinning Katie Rodriguez
City Clerk City Manager
CALL TO ORDER
The meeting was called to order by Mayor Regan Gonzalez at 7:00 p.m. in the Council
Chambers.
Council Members
Present:
Maria Regan Gonzalez, Mayor; Mary Supple; Simon Trautmann; and Sean
Hayford Oleary
Council Members
Absent:
Ben Whalen
Staff Present:
Katie Rodriguez, City Manager; Mary Tietjen, City Attorney; Jennifer
Anderson, Support Services Supervisor; and Kari Sinning, City Clerk
Others Present: Nick Kelley and Blair Harrison, Bloomington Public Health;
PLEDGE OF ALLEGIANCE
Mayor Regan Gonzalez led the Pledge of Allegiance.
OPEN FORUM
Mayor Regan Gonzalez reviewed the options to participate:
Participate live by calling 1-415-655-0001 during the open forum portion
Call prior to meeting 612-861-9711
Email prior to meeting kwynn@richfieldmn.gov
Karin Wolverton, 1001 Rae Dr, shared comments and the need to help people struggling with
homelessness in Richfield and the surrounding communities.
Iris Graham, 7717 Chicago Ave, expressed immense gratitude to our emergency responders
and service members.
APPROVAL OF MINUTES
M/Hayford Oleary, S/Trautmann to approve the minutes of the: (1) City Council Work Session
of June 28, 2022; and (2) Regular City Council Meeting of June 28, 2022.
Motion carried: 4-0
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Council Meeting
July 12, 2022
City Council Meeting Minutes -2- July 12, 2022
ITEM #1
PROCLAMATION OPPOSING CONVERSION THERAPY IN THE CITY OF
RICHFIELD
Mayor Regan Gonzalez invited Human Rights Commissioner Mara Glubka to the podium and
read aloud the proclamation.
Commissioner Glubka shared the importance of this proclamation as it has a personal
importance to her and thanked Management Analyst Swanson for the push to make it happen.
ITEM #2
BLOOMINGTON PUBLIC HEALTH ANNUAL PRESENTATION FROM NICK
KELLEY AND BLAIR HARRISON
Mayor Regan Gonzalez invited Nick Kelley and Blair Harrison to the podium who gave a
presentation regarding Bloomington Public Health as an organization, the annual report, a brief covid
update, and the upcoming work within the City.
Council Member Supple thanked the presenters and asked if their upcoming work in mental
health would help those struggling with addiction as well. Nick Kelley stated that they plan on covering
the gap between the county and the providers to offer resources regarding mental health. Blair
Harrison commented on homelessness and substance abuse by stating that housing and mental
health continue to be a top priority; how to address the drug overdose problem within the homeless
community; and how we have to work as partners to address the issue.
Council Member Trautmann thanked them for their work and asked about their outreach and
using telehealth to provide care. Nick Kelley stated that they ran the WIC clinic virtually for almost two
years and a hybrid model is what they predict for the future.
Mayor Regan Gonzalez thanked the presenters and encouraged our three cities and health
commissions to work together instead of separately since Bloomington Public Health oversees
Bloomington, Edina, and Richfield. She shared an interest in being involved in the focus on health and
housing as the Mayor and also as a public health professional. She also encouraged Bloomington
Public Health to support community members identifying and leading their own solutions. She stated
that Richfield has opportunities within health in all policies and prevention that we should focus on to
better the health and wellness of our community members.
ITEM #3
APPROVAL OF THE AGENDA
M/Trautmann, S/Hayford Oleary to approve the agenda.
Motion carried: 4-0
ITEM #4
CONSENT CALENDAR
City Manager Rodriguez presented the consent calendar.
City Council Meeting Minutes -3- July 12, 2022
A. Consider a resolution approving the conveyance of 1710 - 78th Street East from the City of
Richfield to the Housing and Redevelopment Authority. (Staff Report No. 101)
RESOLUTION NO. 11987
RESOLUTION AUTHORIZING CONVEYANCE OF PROPERTY TO
THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF RICHFIELD, MINNESOTA
B. Consider a request for an interim use permit allowing Minnesota Independence College
and Community to continue to use the property at 2000 - 76th Street West for social,
meeting, and office space for their Community Program. (Staff Report No. 102)
RESOLUTION NO. 11988
RESOLUTION APPROVING AN INTERIM USE PERMIT TO ALLOW
SOCIAL, MEETING, AND OFFICE SPACE FOR USE BY MINNESOTA
INDEPENDENCE COLLEGE AND COMMUNITY AT 2000 - 76TH
STREET WEST
C. Consider approval of the:
1. Memorandum of Amendment No. 1 to Site License Agreement; and
2. Amendment No. 1 to Site License Agreement between the City of Richfield and
Cellco Partnership d/b/a Verizon Wireless which governs the installation and
operation of telecommunications equipment on the Penn Avenue Water Tower.
(Staff Report No. 103)
D. Consider approval of the purchase of a Mack tandem-axle cab/chassis from Nuss Truck &
Equipment for $120,584 and dump box/snow fighting equipment from Towmaster Truck
Equipment for $145,532, totaling $266,116 plus taxes and licensing in 2023 for use by the
Public Works Department and authorize the City Manager to approve contract changes not
to exceed $10,000 without further City Council consideration. (Staff Report No. 104)
M/Supple, S/Trautmann to approve the consent calendar.
Council Member Hayford Oleary applauded the brochure attached to item A.
Council Member Trautmann lifted up Minnesota Independence College and Community
(MICC) and the successes that they provide for neurodivergent people.
Motion carried: 4-0
ITEM #5
CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT
CALENDAR
None.
ITEM #6
SUMMARY REVIEW OF THE CITY MANAGER'S ANNUAL PERFORMANCE
EVALUATION FOR 2021 AND THE FIRST 6 MONTHS OF 2022, HELD ON JUNE
28 AND JULY 12, 2022, AS REQUIRED BY MINN. STATUTES 13D.05 SUBD.
3(A), AND CONSIDERATION OF A RESOLUTION AMENDING EMPLOYMENT
AGREEMENT BETWEEN CITY OF RICHFIELD AND CITY MANAGER KATIE
RODRIGUEZ. (STAFF REPORT NO. 105)
City Council Meeting Minutes -4- July 12, 2022
Mayor Regan Gonzalez presented Staff Report No. 105 and summarized the discussion from
the closed sessions. In summary, the Council was thankful for the leadership that City Manager
Rodriguez has shown in the past three years and happy with her performance.
Council Member Trautmann appreciated City Manager Rodriguez’s leadership and expressed
his confidence in City Manager Rodriguez’s role.
M/Regan Gonzalez, S/Supple to approve the resolution amending the City’s Manager’s
employment agreement with the City reflecting a salary adjustment as amended.
RESOLUTION NO. 11989
RESOLUTION AMENDING THE EMPLOYMENT AGREEMENT BETWEEN
THE CITY OF RICHFIELD AND CATHERINE RODRIGUEZ, CITY MANAGER
Mayor Regan Gonzalez added that the City Manager position will be included in the upcoming
compensation study performed for the City and the City Manager shall continue to participate in a
facilitated peer city managers group. She also read aloud the amended resolution.
Motion carried: 4-0
ITEM #7
CITY MANAGER’S REPORT
City Manager Rodriguez expressed a heartfelt thank you to Council for their support and
recognized all those that help her in her role. She responded to the open forum comment from Ruane
Onesirosan regarding the sale of lots owned by the HRA.
City Manager Rodriguez commented on the passing of the State law allowing the sale of
limited THC products. Support Services Supervisor Anderson stated the considerations that we may
need to talk about with licensing and permitting establishments to sell these products and the
compliance of the establishments much like alcohol sales. City Attorney Tietjen stated that the State
law does not help a lot with regulation and cities will have the final say in the zoning and permitting.
Council Member Hayford Oleary commented on the age control of the delta-8 products already
widely available and stated that he would not support a moratorium. He asked how zoning would work
for gas stations that are currently selling edibles. City Attorney Tietjen stated that to her knowledge
there isn’t anything in the zoning code that prohibits sales. Council Member Hayford Oleary shared
that the zoning restrictions placed upon medical dispensaries should be lightened if gas stations are
going to sell the products.
Council Member Trautmann shared that he is not enthusiastic about a moratorium either and
asked about a possible work session regarding this topic. City Manager Rodriguez stated that it could
be brought to a work session in the next three months.
Mayor Regan Gonzalez thanked staff for keeping them updated on the issue.
ITEM #9
CLAIMS AND PAYROLL
M/Trautmann, S/Supple that the following claims and payrolls be approved:
City Council Meeting Minutes -5- July 12, 2022
U.S. BANK 7/12/2022
A/P Checks: 307370 – 307716 $3,800,828.18
Payroll: 171474 – 171837, 43473 – 43477 $748,742.69
TOTAL $4,549,570.87
Motion carried: 4-0
ITEM #10
HATS OFF TO HOMETOWN HITS
Council Member Supple expressed condolences to the family of Nel Swanson, who was an
educator, historian, and mentor for many years.
Council Member Trautmann lifted up the Urban Wildland Half Marathon and the Richfield
Leadership Network basketball tournament at Donaldson Park on July 23.
Mayor Regan Gonzalez mentioned National Night Out on August 2.
ITEM #10
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:08 p.m.
Date Approved: July 28, 2022
Maria Regan Gonzalez
Mayor
Kari Sinning Katie Rodriguez
City Clerk City Manager
AGENDA SECTION:CONSENT CALENDAR
AGENDA ITEM #2.A.
S TAFF REPORT NO.106
CIT Y COUNCIL ME E T ING
7/26/2022
RE P O RT P RE PA RE D B Y: A my Markle, Recreation S ervices D irector
D E PA RTME NT D IRE C TO R RE V IE W: A my Markle
7/18/2022
O THE R D E PA RTM E NT RE V IE W:
C ITY MA NA G E R RE V IE W: K atie Rodriguez, C ity Manager
7/19/2022
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consider approval of the amended rental agreement between the City of Richfield and the MN
W hitecaps Professional Women's hockey team for use of a locker room, ice time for practices and
games, concessions, and alcohol sales.
E X E C UT IV E S UM M ARY:
The Richfield I ce Arena is home of Minnesota's Tier 2 J unior Hockey Team, the Minnesota Magicians. To
accommodate the Team, the City constructed an additional locker room to Rink One in 2013. The locker
room has been used by the team now for nine years. The Minnesota Magicians have recently sold and
relocated the team. We were able to secure our next rental agreement with the addition of the MN W hitecaps.
Highlights of the attached rental agreement:
Base rent - $4,166 per month
Term - The term of the Rental Agreement shall commence on September 1, 2022 with two remaining
five-year intervals and shall terminate on August 31, 2025.
I ce Time - The Team will be provided free ice time for 15 games each year between October 1 and
May 1. The team will also be given 3.75 practices hours per week during prime time hours.
W hitecaps will operate and receive all proceeds from the sale of strong beer and wine in Rink One
during games.
The City will operate and receive all proceeds from the sale of concessions during games.
The W hitecaps will hold sole advertising rights in Rink 1 and Rink 2 that includes dasher boards, player
benches, seating sections, nets, Zamboni, scoreboard, etc., and also includes Rink One bathrooms.
The City will receive 14 percent of all advertising receivables.
The City will hold sole advertising rights to the Lobby area.
The W hitecaps will pay a pro-rata fee of $1,600 per year for utility use of the rented premises, subject
to up to a 2 percent increase each year.
RE C O M M E ND E D AC T I O N:
By Motion: Approve the rental agreement between the City of Richfield and the MN W hitecaps.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
About the Minnesota W hitecaps
The Minnesota W hitecaps are a professional women’s ice hockey team based in Minneapolis,
Minnesota and competing in the Premier Hockey Federation (formerly the National W omen’s Hockey
League). The W hitecaps are the P HF’s first expansion team, joining the league in the 2018-19 season
after operating as an independent team since 2004. Minnesota won the league championship, the I sobel
Cup, in their first season in the P HF. The team is owned and operated by NLTT Hockey Ventures. Visit
whitecaps.premierhockeyfederation.com to learn more.
About the Premier Hockey Federation
The P HF is the leading home of professional women’s ice hockey in North America. Established in 2015
as the National Women’s Hockey League, the NW HL rebranded to become the P HF in 2021 and
maintains the mission to provide strong role models and fuel the continued growth of the sport. The
league is made up of the Boston Pride, Buffalo Beauts, Connecticut W hale, Metropolitan Riveters,
Minnesota W hitecaps, and the Toronto Six, who all compete annually for the I sobel Cup.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
Contracts require Council approval.
C.C R IT IC AL T IMIN G IS S U E S:
The MN W hitecaps next season starts in October 2022.
D.F IN AN C IAL IMPAC T:
The locker room project was funded by an internal loan in the amount of $600,000 and will be paid back
by rental payments received by the Magicians over a fifteen-year period. There's currently six years
remaining on the internal loan and this will agreement will cover three of them.
E.L E GAL C ON S ID E R AT ION:
The City Attorney has reviewed and prepared the agreement.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Delay or reject approval of the amended rental agreement.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
AT TAC H ME N T S:
D escription Type
W hitecaps agreement C ontract/A greement
600457v2RC160-7 1
AMENDED RENTAL AGREEMENT
This amended rental agreement is made this ___ day of May, 2022, by and between
THE CITY OF RICHFIELD ("Landlord") and NLTT Hockey Ventures, LLC operating as the
Minnesota Whitecaps ("Tenant").
RECITALS
WHEREAS, Landlord and Tenant desire to enter into a Rental Agreement for ice
facilities; and
Landlord and Tenant, intending to be legally bound, hereby covenant and agree as
follow:
ARTICLE I.
Rented Premises
1.1 Landlord does hereby rent demise, and let unto Tenant, and Tenant does hereby
hire and take from Landlord, upon the terms and conditions set forth herein (the Rental
Agreement), the premises shown cross-hatched on Exhibit A attached hereto and incorporated
herein, consisting of 2,000 square feet of locker room space (Rented Premises), located on the
level of the Richfield Ice Arena Building located at 636 East 66th Street situated in the City of
Richfield, Hennepin County, Minnesota (the "Building").
ARTICLE II.
Term
2.1. The term of the Rental Agreement shall commence on May ____, 2022 (the
Commencement Date), and shall consist of three (3) five-year intervals and shall terminate on
April 30, 2038. Either party may terminate the Agreement at the end of each five -year interval
upon giving a written 90-day notice to the other party. Unless notice to terminate is given, the
Agreement will automatically extend for the next five-year interval.
2.2. If, at the termination of this Rental Agreement for reasons other than default or
breach by Tenant, Landlord decides to rent the Rented Premises to a third party, Tenant shall
have the right, for a period of one year after the termination date, to match or exceed any
proposed and/or actual Rental Agreement for the Rented Premises which is acceptable to the
Landlord, and if the Tenant elects in writing within 15 days of the date of receipt of the
proposed and/or actual Rental Agreement, then the parties hereto shall execute such a rental
agreement.
ARTICLE III.
Rent
3.1 Tenant shall pay to Landlord as the "Base Rent" monthly rent in the amount of
$4,166.00 per month. Said Base Rent shall be payable in advance, on or before the first (1st)
day of each and every month, commencing on the Commencement Date, and continuing
during the Term.
ARTICLE IV.
Nonpayment
4.1 Except as otherwise expressly provided herein, Tenant covenants and agrees
600457v2RC160-7 2
that if at any time it fails to pay any amount required by the Rental Agreement, or to obtain, pay
for, maintain, or deliver any of the insurance policies herein provided for, or fails to make any
other payment or perform any other act required to be made or performed by the Rental
Agreement, then Landlord, without notice to or demand upon Tenant, without waiving or
releasing Tenant from any obligation of Tenant contained in the Rental Agreement, and
without any obligation to do so, may effect any such insu rance coverage and pay premiums
therefor and may make any other payment or perform any other act on the part of Tenant to be
made and performed as provided in the Rental Agreement, in such manner and to such extent
as Landlord may deem reasonably desirable, and in exercising such right to pay necessary
and incidental costs and expenses. All sums so paid by Landlord and all necessary and any
such act by Landlord, together with interest thereon at the maximum rate permitted by law,
whichever is less, from the date of making of such expenditure by Landlord, shall be payable
to Landlord as Additional Rent, and except as otherwise provided for in the Rental Agreement,
shall be payable on demand or at the option of Landlord may be added to any monthly rental
then due or thereafter becoming due under the Rental Agreement. Tenant covenants to pay
any such sum or sums with interest as aforesaid and Landlord shall have (in addition to any
right or remedy of Landlord) the same rights and remedies in the event of nonpa yment by
Tenant as in the case of default by Tenant in payment of rent.
ARTICLE V.
Ice Rental, Concessions, and Alcohol Sales
5.1 As part of this agreement, Landlord will provide Tenant free ice time for games
each year between October 1st and May 15th (20 weekend games a year, Saturday nights at
7:00PM and Sunday mid-afternoons between the start time of Noon-2:00PM. Game warm-up
ice will need to be ready 40 minutes before game time. Landlord reserves the right to
exclusively operate the concessions out of the existing concession facility during all games.
The ice time in this section applies only to the Minnesota Whitecaps of the Premier Hockey
Federation.
5.2 Landlord will provide free practice ice time for Tenant each year between
September 1 and May 15th during non-prime hours and for up to three (3) 75 minute slots
during prime time hours as defined in section 5.3 . The Tenant will also need a few morning
sessions each week during the season. The ice time in this section applies only to Minnesota
Whitecaps of the Premier Hockey Federation.
5.3 The Landlord will hold sole concession rights in the lobby concession stand . The
Tenant MN Whitecaps will have the rights to bring in food/pizza to set up areas in
the seating arena for group seating events/party decks.
5.4 The Tenant will hold sole alcohol rights in Rink One during Whitecap games in
accordance with State Statutes.
ARTICLE VI.
Utilities and Maintenance Expense
6.1. Tenant shall pay its pro rata share of all charges for electricity, light, air
conditioning and power with the rented premises and the charges thereof shall be deemed
additional rent. Because the Rented premises are not metered separately, the prorated share
shall be $1,600 per year, subject to a 2% increase per year beginning January 1, 2023, and
600457v2RC160-7 3
payable in two annual payments on August 1 and February 1.
ARTICLE VII.
Repairs, Cleaning, Maintenance and Alterations
7.1 Tenant shall perform regular cleaning duties to the Rented Premises. Tenant,
during the Term and at Tenant's expense, will keep the Rented Premises and appurtenances
and every part thereof in good order, condition, cleanliness, and repair, including, without
limitation, the maintenance, repair, and replacement, if necessary, of all interior walls,
partitions, doors, and windows, including the regular painting thereof. Tenant shall promptly
notify Landlord of any necessary maintenance, repairs, or replacements. Landlord will arrange
repairs that are covered under construction warranty of the Rented Premises. When used in
this provision, the term repairs shall include replacements or renewals when necessary, and all
such repairs made by the Tenant shall be equal in quality and class to the original work. If
Tenant does not keep and maintain the Rented Premises as herein provided, Landlord may,
but need not, make such repairs and replacements, and Tenant shall pay Landlord, as
Additional Rent, the cost thereof forthwith, plus interest at the rate of 10% per annum from the
date of making such expenditure by Landlord, upon being billed for the same. All damage or
injury to the Rented Premises and to its fixtures, appurtenances, and equipment caused by
Tenant moving property in or out of the Rented Premises or by installation, removal of
furniture, fixtures, equipment, or other property by Tenant, its agents, contractors, servants, or
employees, or resulting from any other cause of any other kind or nature whatsoever due t o
carelessness, omission, neglect, improper conduct, or other causes of Tenant, its servants,
employees, agents, visitors, or licensees, shall be repaired, restored, or replaced promptly by
Tenant at its sole cost and expense to the satisfaction of Landlord. If Tenant fails to make
such repairs, restorations, or replacements, the same may be made by Landlord and the same
shall be at the expense of Tenant and collectible as Additional Rent or otherwise, and shall be
paid by Tenant to Landlord within five (5) days after rendition of a bill or statement therefor.
7.2 A list of initial improvements by Tenant includes signage replacement, cleaning,
painting, floor update and other equipment installation as needed in the locker room . Except as
otherwise provided herein, no additional improvements, alterations, or replacements shall be
made to the Rented Premises or any portion thereof without the prior written consent of
Landlord. Such written consent will indicate the owner of such improvements, alterations and
replacements if removed from the rented premises or building after termination of the rental
agreement.
7.3 Notwithstanding any other provision contained herein to the contrary, Landlord
shall repair, at its expense, the structural portions of the Building; provided, however, where
structural repairs are required to be made by reason of the acts of Tenant, the costs thereof
shall be borne by Tenant and payable by Tenant to Landlord upon demand.
7.4 Landlord covenants to Tenant that it will continue to reasonably provide for the
removal of snow from the parking lot and sidewalks and for the maintenance and repair work
on the building exterior all for the benefit of users of the building, including Tenant.
ARTICLE VIII.
Insurance
8.1 Landlord shall at all times during the Term keep the Building insured against loss
or damage by fire and against those perils included from time to time in the standard form of
600457v2RC160-7 4
extended coverage insurance endorsement, including but without limiting the generality of the
foregoing, wind storm, hail, explosion, vandalism, riot and civil commotion, damage from
vehicles, and smoke damage, and such other coverage as may be deemed necessary by
Landlord.
8.2 Tenant shall insure the contents of the Rented Premises owned by Tenant, for
the benefit of Tenant, against loss or damage by fire, windstorm, or other casualty for such
amount as Tenant may desire.
8.3 Mutual Waiver of Subrogation. Landlord and Lessee hereby waive any and all
rights of recovery against each other for any loss or damage to the Rented Premises and/or
the Building or the contents contained therein on account of fire or other casualty or for injuries
sustained on the Rented Premises and/or the Building, provided such loss or damage is
insured under a policy carried by Lessor or Lessee at the time of such loss or damage. The
aforesaid policies of insurance shall contain appropriate provisions recognizing this mutual
release and waiving all rights of subrogation on behalf of the respective insurance carriers.
8.4. Tenant shall also, as Additional Rent hereunder and at Tenant's sole cost and
expense, but for the mutual benefit of Landlord and Tenant, as named insureds, maintain
during the Term (a) general public liability insurance against claims for personal injury, death,
or property damage occurring upon, in, or about the Rented Premises, and on, in, or about the
adjoining lands, such insurance to afford protection to the limit of not less than Five Hundred
Thousand and no/100 Dollars ($500,000.00) in respect to injury or death to a single person,
and to the limit of not less than one Million and no/100 Dollars ($1,000,000.00) in respect to
any one (1) accident and to the limit of not less than Three Hundred Thousand and no/100
Dollars ($300,000.00) in respect to any property damage; and (b) steam boiler insurance on all
steam boilers, pressure boilers, or other such apparatus as Landlord may deem necessary to
be covered by such insurance and in such amount or amounts as Landlord may from time to
time reasonably require.
8.5 All policies of insurance required to be maintained by Tenant shall be written in
companies satisfactory to Landlord, and shall be written in such form and shall be distributed in
such companies as shall be reasonably acceptable to Landlord. Such policies shall be
delivered to Landlord endorsed "premium paid" by the company or agency issuing the same or
accompanied by another evidence satisfactory to Landlord that the premiums thereon have
been paid, not less than (10) days prior to the expiration of any then current policy.
ARTICLE IX.
Quiet Enjoyment
9.1 Landlord represents and warrants that it is the lawful owner of the Rented
Premises; that it has the full right and power to make the Rental Agreement; that if and so long
as Tenant shall not be in default hereunder, Tenant shall quietly hold, occupy, and enjoy the
Rented Premises during all of the Term.
ARTICLE X.
Destruction By Fire
10.1 If the Building or any portion thereof is damaged or destroyed by fire or other
casualty, however or by whomever caused, Landlord shall repair, rebuild, and restore the
same with due diligence and dispatch (subject to the approval of the holders of any mortg ages
600457v2RC160-7 5
on the Building) so that the Building will be restored to at least the same good order and
condition as existed prior to damage or destruction. If more than twenty five percent (25%) of
the Rented Premises is damaged or destroyed by fire or other casualty, Landlord shall have
the option, in its sole discretion, to decline to rebuild. If Landlord so declines, this Rental
Agreement shall terminate as of the date of such damage or destruction. If Landlord elects to
repair the Building, and if such damage in the reasonable opinion of the Landlord renders the
entire Rented Premises unfit for Tenant's normal business purposes, and Tenant by reason
thereof discontinues business in the Rented Premises, Base Rent and Additional Rent shall be
abated for a period during which no part of the Rented Premises is fit for such business
purposes and during which time Tenant discontinues business. If such damage renders only
part of the Rented Premises unfit for Tenant's normal business purposes, Base Rent shall be
apportioned on a square foot of Rented Premises area basis and the proportion thereof
applicable to each part of the Rented Premises upon which Tenant discontinues its business
operations shall be abated for the period during which such part is not fit for T enant's normal
business purposes and during which Tenant discontinues such business operations.
10.2 Tenant will repair and replace all improvements and betterments placed upon the
Rented Premises by it, and such repair and replacement shall be made at its own expense and
not at the expense of Landlord.
ARTICLE XI.
Assignment and Subletting
11.1 Tenant shall not assign or sublease any of its rights under the Rental Agreement
of any part of the Rented Premises without prior written consent from Landlord, which consent
shall not be unreasonably withheld by Landlord. No such assignment or subleasing shall in
any event relieve Tenant from any of its obligations contained in the Rental Agreement, nor
shall any assignment or transfer of the Rental Agreement be effective unless the assignee or
transferee shall, at the time of such assignment or transfer, assume in writing all the terms,
covenants, and conditions of the Rental Agreement to be performed thereafter by Tenant and
shall agree in writing to be bound thereby. Tenant agrees to pay on behalf of Landlord any
and all costs of Landlord, including reasonable attorneys' fees occasioned by such assignment
or transfer.
ARTICLE XII.
Defaults of Tenant
12.1 If during the Term Tenant shall default in fulfilling any of the covenants of the
Rental Agreement (other than the covenants for the payment of Base Rent or Additional Rent),
Landlord shall give Tenant notice of any default or of the happening of any contingency
referred to in this paragraph, and if at the expiration of twenty (20) days after the service of
such notice the default or contingency upon which said notice was based shall continue to
exist, or in the case of a default or contingency which cannot with due diligence be cured within
a period of twenty (20) days, if Tenant fails to proceed promptly after the service of such notice
and with all due diligence to cure the same and thereafter to prosecute the curing of such
default with all due diligence, Landlord, at its option, may terminate the Rental Agreement, and
upon such termination, Tenant will quit and surrender the Rented Premises to Landlord, but
Tenant shall remain liable as hereinafter provided.
12.2 If Tenant shall default in the payment of the Base Rent or Additional Rent
expressly reserved hereunder, or any part of the same, and such default shall continue for ten
600457v2RC160-7 6
(10) days after notice thereof by Landlord, or if the Rental Agreement shall expire as provided
in Paragraph 12.1 of this Article, Landlord or Landlord's agents and servants may immediately
or at any time thereafter re-enter the Rented Premises and remove all persons and any or all
property therefrom, either by summary dispossession proceedings or by any suitable action or
proceedings at law or by force or otherwise and repossess and enjoy said Rented Premises,
together with all additions, alterations and improvements, without reentry and repossession
working forfeiture or waiver of the rents to be paid and the covenants to be performed by
Tenant during the Term hereof. Upon the expiration of the Term of the Rental Agreement by
reason of any of the events described in Paragraph 12.1, or in the event of termination of the
Rental Agreement by summary dispossession proceedings or under any provision of law now
or hereafter in force by reason of or based upon or arising out of a default under or a breach of
the Rental Agreement on the part of Tenant (except where such breach or default is
determined by a court of competent jurisdiction to be justified because of Landlord's acts or
omissions), or upon Landlord recovering possession of the Rented Premises in the manner or
in any of the circumstances whatsoever, whether with or withou t legal proceedings, by reason
of or based upon or arising out of a default under or a breach of the Rental Agreement on the
part of Tenant, Landlord may, at its option, at any time and from time to time, relet the Rented
Premises, or any part thereof, for the account of Tenant or otherwise, and receive and collect
the rents therefor, applying the same first to the payment of such expenses as Landlord may
have incurred in recovering possession of the Rented Premises, including legal expenses and
attorneys, fees, and for putting the same into good order or condition or preparing or altering
the same for re-rental and all other expenses, commissions, and charges paid, assumed, or
incurred by Landlord in reletting the Rented Premises and then to the fulfillment of the
covenants of Tenant hereunder. Any such reletting herein provided for may be for the
remainder of the Term of the Rental Agreement as originally granted or for a longer or shorter
period. In any such case or whether or not the Rented Premises, or any part thereof, is relet,
Tenant shall pay to Landlord the Base Rent and the Additional Rent required to be paid by
Tenant up to the time of such termination of the Rental Agreement, as the case may be, and
thereafter, Tenant covenants and agrees, if required by Landlord, to pay to Landlord until the
end of the Term of the Rental Agreement the equivalent of the amount of all the Base Rent
and Additional Rent reserved herein less the net proceeds of reletting, if any. Landlord shall
have the election, in place and stead of holding Tenant so liable, forthwith to recover against
Tenant, as damages for loss of the bargain and not as penalty, an aggregate sum which at the
time of such termination of the Rental Agreement for such recovery of possession of the
Rented Premises by Landlord, as the case may be, represents the then present worth of the
excess, if any, of the aggregate of the Base Rent and Additional Rent payable by Tenant
hereunder that would have accrued for the balance of the Term, over the aggregate rental
value of the Rented Premises for the balance of such Term.
12.3 The specified remedies to which Landlord may resort under the terms of the
Rental Agreement are cumulative and are not intended to be exclusive of any other remedies
or means of redress to which Landlord may be lawfully entitled in case of any breach or
threatened breach by Tenant of any provision of the Rental Agreement. The failure of
Landlord to insist in any one or more cases upon the strict performance of any of the
covenants of the Rental Agreement or to exercise any option herein contained shall not be
construed as a waiver or a relinquishment for the future of such covenant or option. A receipt
by Landlord of Base Rent or Additional Rent, with knowledge of breach of any co venant hereof
(other than the payment of Base Rent or Additional Rent) shall not be deemed a waiver of
such breach, and no waiver by Landlord of any provision of this Rental Agreement shall be
600457v2RC160-7 7
deemed to have been made unless expressed in writing and signed by Landlord. In addition to
other remedies provided in this Rental Agreement, Landlord shall be entitled to the restraint by
injunction for the violation or attempted or threatened violation of the covenants, conditions, or
provisions of the Rental Agreement.
ARTICLE XIII.
Attorneys' Fees
13.1 If it is necessary for Landlord to retain the services of an attorney at law to
enforce any of the terms, covenants, or provisions hereof, or to collect any sums due
hereunder, Tenant shall pay to Landlord upon demand, as Additional Rent hereunder, the
reasonable cost of such services.
ARTICLE XV.
Condition of Rented Premises at Termination
15.1 At the termination of the Rental Agreement by lapse of time or otherwise, Tenant
shall return the Rented Premises in as good a condition as when Tenant took possession,
excepting only ordinary wear and tear, damage, or destruction as described in Article 10
herein.
ARTICLE XVI.
Holding Over
16.1 In the absence of any written agreement to the contrary, if Tenant should
continue to occupy the Rented Premises following the expiration of the Term of the Rental
Agreement, Tenant shall so remain as a tenant from month to month and all provisions of the
Rental Agreement applicable to such tenancy shall remain in full force and effect. During such
tenancy, the same Base Rent and the same terms and conditions as prevailed during the last
month of the Term demised shall prevail. In any such event, Tenant shall be liable to Landlord
for damages which Landlord may incur as a result of such holding over, including but not
limited to damages incurred because of loss of a prospective successor tenant. If Tenant is a
holdover tenant and if Tenant continues to ' occupy the Rented Premises following the
termination of such holdover (by a proper notice as to such month to month tenancy), then the
foregoing provisions of this Article shall apply in the same manner as when Tenant continued
in occupancy following the expiration of the Term of the Rental Agreement.
ARTICLE XVII.
Use of Rented Premises
17.1 The Rented Premises shall be used only for the operation of the Minnesota
Whitecaps. Tenant shall not use or occupy the Rented Premises or knowingly permit the
Rented Premises to be used or occupied contrary to any statute, rule, order, ordinance,
requirement, or regulation applicable thereto or in any manner which would violate any
certificate of occupancy affecting the same, or which would cause structural injury to the
Rented Premises or cause the value or usefulness of the Rented Premises or any part thereof
to substantially diminish (reasonable wear and tear excepted) or which would constitute a
public or private nuisance or waste. Tenant shall promptly upon discovery of any such use,
take all necessary steps to compel the discontinuance of such use.
ARTICLE XVIII.
Permits
18.1 Tenant shall maintain in force and effect all permits, licenses, and similar
600457v2RC160-7 8
authorizations to use the Rented Premises for the aforesaid purposes required by any
governmental authority having jurisdiction over the use thereof. Tenant's failure to maintain
such permits, licenses, and similar authorizations shall not relieve Tenant from the
performance of its obligations and covenants hereunder (except obligations and covenants as
may be prohibited by law), nor from the obligations to pay Base Rent or Additional Rent, as set
forth herein. Tenant shall, at Landlord's request, in its capacity as Tenant, and not in its
capacity as owner of the land underlying the Building, join with Landlord in executing,
acknowledging, and delivering any and all petitions, consents, subordinations, plats, or
easement deeds that may be required for the installation of any utilities, public improvements,
roads, water lines, sewer lines, storm drainage facilities, subdivision, rezoning, special use,
platting, or other similar development of the Rented Premises, which do not affect Tenant's use
of the Rented Premises during the Term of the Rental Agreement.
ARTICLE XIX.
Compliance with Law
19.1 Tenant, at its sole expense, shall promptly comply with all laws, ordinances, and
requirements of federal, state, county, and municipal authorities relating to Tenant's use and
occupation of the Rented Premises, and with any lawful order or direction of any public officer
relating to Tenant's use and occupation of the Rented Premises during the Term of the Rental
Agreement. Nothing herein contained, however, shall prohibit Tenant from appealing from or
contesting the validity or legality of such laws, ordinances, requirements, orders, or directions
and, notwithstanding the foregoing provisions of this Article, Tenant shall not be deemed to be
in default hereunder so long as Tenant diligently prosecutes such appeal or contest.
ARTICLE XX.
Lessor's Access to Premises
20.1 Tenant shall permit Landlord and the authorized representatives of Landlord to
enter the Rented Premises at all times during usual business hours for the purpose of
inspecting the same and making any necessary repairs to comply with any laws, ordinances
rules, regulations, or requirements of any public authority. Nothing herein shall imply any duty
upon the part of Landlord to do any such work which, under any provision of the Rental
Agreement, Tenant may be required to perform, and the performance thereof by Landlord shall
not constitute a waiver of Tenant's default in failing to perform the same. Landlord may, during
the progress of any work in the Rented Premises, reasonably keep and store upon the Rented
Premises all necessary materials, tools, and equipment. Landlord shall not in any event be
liable for inconvenience, annoyance, disturbance, lo ss of business, or other damage to Tenant
by reason of making repairs or the performance of any work in the Rented Premises, or on
account of bringing materials, supplies, and equipment onto or through the Rented Premises
during the course thereof, and the obligations of Tenant under the Rental Agreement shall not
hereby be affected in any manner whatsoever. Landlord shall, however, in connection with the
doing of any such work cause as little inconvenience, annoyance, disturbance, loss of
business, or other damage to Tenant as may reasonably be possible in the circumstances.
ARTICLE XXI.
Indemnity
21.1 Tenant shall indemnify and save harmless Landlord against and from any and all
claims by or on behalf of any person or persons, firm or firms, corporation or corporations,
arising from the conduct or management of or from any work or thing whatsoever done by
Tenant, or any of its agents, contractors, employees, or licensees in, on or about the Rented
600457v2RC160-7 9
Premises, and will further indemnify and save Landlord harmless against and from any and all
claims arising during the Term of the Rental Agreement from any condition of the Rented
Premises arising from any breach or default on the part of Tenant in the performance of any
covenant or agreement on the part of Tenant to be performed, pursuant to the terms of the
Rental Agreement, or arising from any act of negligence of Tenant, or any of its agents,
contractors, employees, or licensees, or arising from any accident, injury, or damage
whatsoever caused to any person, firm, or corporation occurring during the Term of the Rental
Agreement, in the Rented Premises, and from and against all costs, reasonable attorneys,
fees, expenses, and liabilities incurred in or about any such claim or action or proceeding
brought thereon; and in case any action or proceeding is brought against Landlord by reason
of any such claim, Tenant, upon notice from Landlord, shall resist or defend such action or
proceeding by counsel reasonably satisfactory to Landlord. However, nothing in this Rental
Agreement shall require the Tenant to indemnify and save harmless Landlord from any claim
caused by or occasioned by actions of the Landlord, its agents, contractors, employees or
licensees.
ARTICLE XXII.
Estoppel Certificate
22.1 Tenant shall, at any time and from time to time, upon not less than twenty (20)
days' prior notice by Landlord, execute, acknowledge, and deliver to Landlord a statement in
writing certifying that the Rental Agreement is unmodified and in full force and effect (or if there
shall have been modifications that the Rental Agreement is in full force and effect as modified
and stating the modifications) and the dates to which the Base Rent and Additional Rent have
been paid in advance, if any, and stating whether or not (to the best knowledge of Tenant)
Landlord is in default in the performance of any covenant, agreement, or condition contained in
the Rental Agreement and, if so, specifying each such default of which Tenant may have
knowledge, it being intended that any such statement delivered pursuant to this Article shall be
in a form approved by and may be relied upon by any prospective assignee of Landlord's
interest in the Rental Agreement or any mortgagee of the Rented Premises or any assignee of
any mortgage upon the Rented Premises.
ARTICLE XXIII.
Subordination
23.1 The Rental Agreement shall, at Landlord's election, be subject and subordinate
to the terms and conditions of all mortgages which may now or hereafter en cumber the Rented
Premises and to all renewals, modifications, consolidations, replacements, and extensions of
such mortgages. In confirmation of such subordination, Tenant shall promptly execute any
certificate of subordination or other such documents which Landlord or its mortgagees may
request.
ARTICLE XXIV.
Landlord’s Use of Rented Premises
24.1 Tenant shall grant Landlord the use of the Rented Premises between June 1st
and September 30th to accommodate skate related events for up to 20 days per year.
Tenant’s Base Rent shall be prorated on a daily basis to account for Landlord’s use of the
Rented Premises during this period.
ARTICLE XXV.
Entire agreement
600457v2RC160-7 10
25.1 The Rental Agreement contains the entire agreement between the parties, and
there are no other terms, obligations, covenants, representations, statements, or conditions,
oral or otherwise, of any kind whatsoever. Any agreement hereafter made shall be ineffective
to change, modify, discharge, or effect an abandonment of the Rental Agreement in whole or
in part unless such agreement is in writing and signed by the party against whom enforcement
of the change, modification, discharge, or abandonment is sought.
ARTICLE XXVI.
Release of Lessor
26.1 If Landlord sells or otherwise transfers all of its interest in the Rented Premises,
Landlord shall, without further action by any party, be released and discharged from any
further obligation or duty under the Rental Agreement, and no claim or demand upon Landlord
shall thereafter be made by Tenant arising out of any such prospective obligation or duty of
Landlord hereunder. Upon request by Landlord, Tenant shall execute an attornment
agreement with Landlord's transferee in form satisfactory to such transferee.
ARTICLE XXVII.
Severability
27.1 If any term, condition, or provision of the Rental Agreement or the application
thereof to any person or circumstance shall, to any extent, be held to be invalid or
unenforceable, the remainder thereof and the application of such terms, provisions, and
conditions to persons or circumstances other than those as to whom it shall be held invalid or
unenforceable shall not be affected thereby, and the Rental Agreement and all the terms,
provisions, and conditions hereof shall, in all other respects, continue to be effective and to be
complied with to the full extent permitted by law.
ARTICLE XXVIII.
Short Form Rental Agreement
28.1 At the request of either party hereto, a short form Rental Agreement shall be
prepared in form and substance reasonably satisfactory to each of the parties and shall be
executed by each of the parties in duplicate, such Rental Agreement to be filed for record in
Hennepin County, Minnesota.
ARTICLE XXIX.
Notices
29.1 Any notice or election herein requested or permitted to be given or served by
either party hereto upon the other, shall be deemed given or served in accordance with the
provisions of the Rental Agreement if delivered to either party hereto and receipt is obtained
therefor, or if mailed in a sealed wrapper by United states registered or certified mail, postage
prepaid, properly addressed to such other party at the address hereinafter specified. Unless
and until changed by notice as herein provided, notices and communications shall be
addressed as follows:
If to Landlord: City of Richfield, 6700 Portland Avenue, Richfield, MN 55423
If to Tenant: NLTT Hockey Ventures, LLC/Minnesota Whitecaps, 20888 Ashley Way,
Saratoga, CA 95070
600457v2RC160-7 11
Each such mailed notice or communication shall be deemed to have been given to, or served
upon the party to which addressed, on the date the same is deposited in the United States
registered or certified mail, postage prepaid, properly addressed in the manner above
provided. Each such delivered notice or communication shall be deemed to have been given
to, or served upon, the party to whom delivered, upon delivery thereof in the m anner above
provided. Either party may change the address to which mailed notice is to be sent to it by
giving to the other party hereto not less than thirty (30) days, advance written notice thereof.
All payments of Base Rent or Additional Rent hereunde r shall be made to Landlord at the
address above designated, or as may be hereafter designated.
ARTICLE XXX.
Headings
30.1 The headings incorporated in the Rental Agreement are for convenience in
reference only and are not a part of the Rental Agreement and do not in any way limit or add to
the terms and provisions hereof.
ARTICLE XXXI.
Binding Effect
31.1 All of the covenants, conditions, and agreements herein contained shall extend
to, be binding upon and inure to the benefit of the parties hereto and their respective heirs,
successors, and assigns.
ARTICLE XXXII.
Advertising Rights
32.1 Tenant will hold sole advertising rights in Rink 1 and Rink 2 that includes dasher
boards, player benches, seating sections, nets, Zamboni, scoreboard, etc., and also includes
Rink One bathrooms. Tenant will give advertising revenue percentage of 14% of sponsorship
revenue. Minnesota Whitecaps will be able to place Home of Minnesota Whitecaps over front
doors of arena. Landlord will hold sole advertising rights in the Arena lobby.
IN WITNESS WHEREOF, the parties have executed this Rental Agreement the day and year
first above written.
LESSOR/LANDLORD:
CITY OF RICHFIELD, a Minnesota municipal corporation
By: ___________________________________
Its Mayor, Maria Regan Gonzalez
And By: ________________________________________
Its City Manager, Katie Rodriguez
LESSEE/TENANT:
NLTT Hockey Ventures, LLC operating as the Minnesota Whitecaps , a Delaware limited
liability corporation
600457v2RC160-7 12
By: ________________________________________
________________________________________
____________________________________________________________
Its Owners
This instrument was drafted by:
Kennedy & Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
612-337-9300
AGENDA SECTION:CONSENT CALENDAR
AGENDA ITEM #2.B.
STAFF RE P ORT NO. 107
CIT Y COUNCIL ME E T ING
7/26/2022
RE P O RT P RE PA RE D B Y: A my Markle, Recreation S ervices D irector
D E PA RTME NT D IRE C TO R RE V IE W: A my Markle, Recreation S ervices D irector
7/20/2022
O THE R D E PA RTM E NT RE V IE W:
C ITY MA NA G E R RE V IE W: K atie Rodriguez, C ity Manager
7/20/2022
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consider approval of the establishment of a Recreation Special Revenue Fund for the Sustainability
Program that includes organized collection.
E X E C UT IV E S UM M ARY:
The City of Richfield's Sustainability Program which includes organized collection has financially been
included in the W ood Lake Nature Center budget. For transparency and separate tracking of this program,
staff recommends establishing a new fund. This change will also help track several of the grants that support
components of this permanent City program.
RE C O M M E ND E D AC T I O N:
Staff recommends that all sustainability related funding be separated into a new Fund called
Recreation Special Revenue Fund (20040).
The following business units under that new Fund:
20041 Sustainability
20042 Recycling
20043 Organics
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The City Code requirement: Section 7.12 – Funds to be kept – under subd. 2
This section of code requires a new fund to be established by Council.
C.C R IT IC AL T IMIN G IS S U E S:
Staff would like to make this change for the 2023 budget season.
D.F IN AN C IAL IMPAC T:
None
E.L E GAL C ON S ID E R AT ION:
None
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Reject recommendation and additional alternatives will be pursued.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
AT TAC H ME N T S:
D escription Type
Resolution establishing a Recreation S pecial Revenue
F und Resolution L etter
RESOLUTION NO.
RESOLUTION AUTHORIZING ESTABLISHMENT OF NEW SPECIAL REVENUE
FUNDS FOR THE CITY'S ORGANIZED HAULING PROGRAM, INCLUDING
RECYCLING, ORGANICS, AND SUSTAINABILITY PROGRAMS.
WHEREAS, the City of Richfield has a Sustainability and Organized Hauling
Program, managed by a Sustainability Specialist, that includes organized trash hauling,
organic waste drop-off, and sustainability promotion; and
WHEREAS, management of these programs includes grants from Hennepin
County and other entities; and
WHEREAS, prior to the approval of organized hauling, the Recreation Services
general fund budget is where expenses were budgeted while the program was being
established; and
WHEREAS, for transparency and accurate tracking of revenue and expenditures,
staff recommends the establishment of a new fund; and
WHEREAS, this fund will separate this financial activity by sub-program and will
include the following business units: Sustainability (20041), Recycling (20042), and
Organics (20043); and
WHEREAS, Section 7.12 of the City Code requires Council approval by
resolution of the establishment of new funds in the City of Richfield budget; and
WHEREAS, staff recommends the establishment of these funds in 2022 to
coincide with the assembly of the 2023 proposed budget.
NOW, THEREFORE, BE IT RESOLVED the City Council approves the
establishment of three new funds for the City’s Sustainability and Organized Hauling
Program, for transparent and accurate tracking of financial activity to operate these
programs.
Adopted by the City Council of the City of Richfield, Minnesota this 26th day of
July, 2022.
Maria Regan Gonzalez, Mayor
ATTEST:
Kari Sinning, City Clerk
AGENDA SECTION:CONSENT CALENDAR
AGENDA ITEM #2.C.
STAFF RE P ORT NO. 108
CIT Y COUNCIL ME E T ING
7/26/2022
RE P O RT P RE PA RE D B Y: C hris S wanson, Management A nalyst
D E PA RTME NT D IRE C TO R RE V IE W:
O THE R D E PA RTM E NT RE V IE W: S am K etchum, C ity A ttorney
C ITY MA NA G E R RE V IE W: K atie Rodriguez, C ity Manager
7/20/2022
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Approval of the first reading of an ordinance amending the term of the Existing Franchise Agreement
from August 1, 2022, to January 31, 2023, and schedule a public hearing and second reading for
September 13, 2022.
E X E C UT IV E S UM M ARY:
The Southwest Suburban Cable Commission ("Commission") consists of the cities of Eden Prairie, Edina,
Hopkins, Minnetonka and Richfield, Minnesota ("Member Cities"). The Commission administers and enforces
the cable franchises on behalf of its Member Cities.
On or about J anuary 1, 1997, each of the Member Cities granted a Cable Television Franchise to K B L Cable
systems of the Southwest, I nc ("Existing Franchise"). At that same time the Member Cities each adopted a
Cable Television Regulatory Ordinance ("Regulatory Ordinance") to be incorporated into the City Code of
each Member City. I n 2000, the Commission and Member Cities approved a transfer of the Existing
Franchise to Time W arner, I nc. I n J une of 2005, Time W arner transferred the Existing Franchise to
Comcast Communications ("Comcast”). Comcast currently operates the cable systems in each of the
Member Cities under authority granted in the Existing Franchise.
The initial term of the Existing Franchise ran for fifteen years and was extended by the Member Cities to
expire on J uly 31, 2012. Each member city adopted a cable franchise in 2012 which granted Comcast a 10
year franchise with an effective date of August 1, 2012. Due to delays finalizing the Needs Assessment
Report and related matters, negotiations of the renewed franchise will obviously not be completed before the
existing franchise expires on August 1, 2022.
Expiration of an existing cable franchise during renewal proceedings is not unusual for cable commission
franchise renewals nor is it unusual in the cable industry. Even if the member cities took no action to extend
the existing franchise, the Comcast franchise would remain in place, Comcast would continue to have
authority to operate, and would be required to remit applicable fees to each city. Federal law provides that
cable franchises remains in effect until a city denies a franchise renewal request under 47 US C 546.
The Commission and Comcast, pursuant to 47 U.S.C. §546(h), are currently conducting informal franchise
renewal negotiations in an attempt to reach a mutually acceptable terms for franchise renewal.
Both the Commission and Comcast are interested in continuing informal renewal negotiations and desire to
extend the Franchise term from August 1, 2022, to J anuary 31, 2023. The attorney representing the
Commission has provided all five Member Cities the attached draft ordinance amendment which will allow the
Commission to continue these discussions.
Staff recommends approval of the draft ordinance amendment as is. All five Member Cities are taking action
on the Model Franchise simultaneously. Any proposed revisions from one of the Member Cities may require
the Commission to seek agreement not only from Comcast but from the other four Member Cities.
A public hearing is required for this under City Code, Section 10.05
RE C O M M E ND E D AC T I O N:
By Motion: Approve the first reading of an ordinance amending the term of the Existing Franchise
Agreement from August 1, 2022, to January 31, 2023, and schedule a public hearing and second
reading for September 13, 2022.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
I ncluded in Executive Summary
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
C.C R IT IC AL T IMIN G IS S U E S:
The cable television franchise renewal should be extended as soon as possible because the existing
franchise extension expires on August 1, 2022.
D.F IN AN C IAL IMPAC T:
All current franchise fees remain in place.
E.L E GAL C ON S ID E R AT ION:
The franchise ordinance was negotiated and drafted by legal counsel
for the Southwest Cable Communications Commission, Brian Grogan.
Under the City Charter, the new ordinance will not be effective until 30 days after publication of the
ordinance.
The S W C C C has negotiated that the new rates will be applied retroactively to August 1, 2022.
The attached draft ordinance amendment was review and finalized by the City Attorney.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
The City Council could choose to not adopt the proposed ordinance amendment, however, its adoption has
been recommended by the Board of the S W S C C.
Failure to adopt the ordinance will not nullify our franchise agreement with Comcast. Even if the member
cities took no action to extend the existing franchise, the Comcast franchise would remain in place, Comcast
would continue to have authority to operate, and would be required to remit applicable fees to each city.
Federal law provides that cable franchises remains in effect until a city denies a franchise renewal request
under 47 US C 546.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
AT TAC H ME N T S:
D escription Type
A N ORD INA NC E E X TE ND ING THE TE RM O F THE
F RA NC HIS E HE L D B Y C O M C A S T OF M INNE S OTA ,
INC
Ordinance
1
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BILL NO.
TRANSITORY ORDINANCE NO.
AN ORDINANCE EXTENDING THE TERM OF THE FRANCHISE
HELD BY COMCAST OF MINNESOTA, INC.
WHEREAS, on June 25, 2012, the City of Richfield, Minnesota (“City”) granted a
cable television franchise pursuant to Ordinance No. 2012-10 (“Franchise”), which is
currently held by Comcast of Minnesota, Inc. (“Comcast”); and
WHEREAS, the City and Comcast, pursuant to 47 U.S.C. § 546(h), are currently
conducting informal franchise renewal negotiations in an attempt to reach a mutually
acceptable terms for franchise renewal; and
WHEREAS, the City and Comcast are interested in continuing informal renewal
negotiations and desire to extend the Franchise term from August 1, 2022, to January
31, 2023; and
WHEREAS, the City and Comcast have determined that an extension of the
Franchise term is reasonable and in the best interest of the City, and its residents, to
ensure uninterrupted cable television services; and
WHEREAS, the City and Comcast desire to expressly reserve all of their
respective rights under state and federal law; and
WHEREAS, the City and Comcast continue to be governed by the formal
renewal process pursuant to 47 U.S.C. § 546(a-g) and nothing contained herein shall in
anyway diminish either party’s rights under the formal renewal process.
NOW THEREFORE, THE CITY OF RICHFIELD DOES ORDAIN:
1. The Franchise is hereby amended by extending the term of the Franchise
from August 1, 2022, through January 31, 2023.
2. Except as specifically modified hereby, the Franchise shall remain in full
force and effect.
3. This Ordinance shall become effective upon adoption by the City, in
accordance with Section 3.09 of the City Charter, and acceptance by Comcast.
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Adopted by City of Richfield, Minnesota, this 26th day of July, 2022.
Maria Regan Gonzalez, Mayor
ATTEST:
Kari Sinning, City Clerk
ACCEPTANCE
Comcast of Minnesota, Inc. hereby accepts this Ordinance and agrees to be
bound by the terms and conditions of the Franchise, as amended.
COMCAST OF MINNESOTA, INC.
By:
Its:
Sworn to before me this
day of , 2022.
Notary Public