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09-24-02 agenda`3 CITY OF RICHFIELD, MINNESOTA TUESDAY, SEPTEMBER 24, 2002 ~,~~,~~ SPECIAL CITY COUNCIL WORKSESSION ~ •.` ~, ~ _ ~V , .,, ~ , COUNCIL CHAMBERS 6700- PORTLAND AVENUE 5:00 P.M. Call to order Roll call Discussion related to noise wall at 77th Street near Portland Avenue 2. Discussion related to on-street parking ban in Richfield 3. Discussion related to Richfield's airport noise acquisition program strategy Adjournment *~~,~*.~ REGULAR CITY COUNCIL MEETING COUNCIL CHAMBERS 6700 PORTLAND AVENUE 6:30 P.M. AGENDA INTRODUCTORY PROCEEDINGS Call to order Roll call Open Forum (15 minutes maximum) Each speaker is asked to complete a speaker's form and provide it to a staff member. Speakers are also asked 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. Notes: Pledge of Allegiance Approval of minutes of Regular City Council Meeting of September 12, 2002 PRESENTATIONS Presentation of proclamation designating Women of Today Week, September 23- 29, 2002 2. Presentation of proclamation designating Fire Prevention Week in Richfield, October 6-12, 2002 Notes: COUNCIL DISCUSSION Notes: AGENDA APPROVAL 3. Council approval of agenda CONSENT CALENDAR 4. 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 resolution appointing additional election judges for November 5, 2002 General Election S.R. No. 220 B. Consideration of approval of resolution authorizing establishment of Health Care Savings Plan for eligible City of Richfield employees S.R. No. 221 C. Consideration of approval of resolution amending membership listing of South West Fire League Mutual Aid Association S.R. No. 222 iDr Consideration of approval of resolution certifying delinquent sewer and water utility ~ unts to County Auditor S.R. No. 223 E. Consi era i evying special.assessmentfnr nuisance to S.R. No. 224 ~` -~ ~~ ~"~-- F. onsideration of approva o pure ase an installation of new evaporative ~~ condenser for Rink One at Richfield Ice Arena from Gartner Refrigeration & Mfg. . in am G. Consideration of approval of new therapeutic massage license for Anne Thurber, 7515 Upton Avenue S.R. No. 226 Notes: 5. Consideration of items, if any, removed from Consent Calendar . RESOLUTION fi. Consideration of resolution decertifying Lyndale-HUB-Nicollet Tax Increment Financing District Staff Report No. 227 OTHER BUSINESS 7. Consideration of designating City of Richfield official voting delegate and alternate voting delegate for National League of Cities annual Congress of Cities business meeting on December 7 in Salt Lake City, UT Staff Report No. 228 Notes: 8. City Manager's report Notes: 9. 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 asked to complete a speaker's form and provide it to a staff member. Speakers are also asked 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. Notes: 10.Adjournment Auxiliary aids for individuals with disabilities are available upon reques#. Requests must be made at least 96 hours in advance to the Administrative Services Director at 612-861-9702. September 2002 City of Richfield } ~ '\~ CITY COUNCIL MEETING MINUTES ~° '~Ij~ Richfield, Minnesota Regular Meeting ------ t~,~ September 12, 2002 :'CALL TO ORDER The meeting was called to order by Mayor Pro Tempore Sandahl at 6:38 p.m. ROLL CALL Members Present: Martin Kirsch, Mayor (arrived at 6:45 p.m:); Susan Rosenberg; Gertrude Ulrich; John Enger; and Sue Sandahl. Staff Present: Samantha Orduno, City Manager, Steven Devich, Administrative Services Director, Bruce Nordquist, Acting Community Development Director, Dan Public Works Director; Jim Director; Mike Eastling Public Safet tt S , y co , Topitzhofer, Recreation Services Director; Kevin McGinty, Fire Services Director, Bill Fillmore, Liquor Operations Director, Chris Regis, Finance Manager; John Stark, Community Development Manager, AI Payne, Facilities Manager, Pam Dmytrenko, Assistant to City Manager; Cheryl Krumhoiz, Recording Secretary; and Corrine Thomson, City Attorney. OPEN `FORUM No one was registered to speak. PRESENTATION OF:COLORS AND PLEDGE OF ALLEGIANCE Mayor Kirsch led the audience in the Pledge of Allegiance. APPR01/AL OF'MINUTES MlRosenberg, S/Ulrich to approve the minutes of (1) Special Citv Council Worksession of August 12 2002 f2) Special City Council Worksession of August 13. 2002: (3) Regular Citv Council Meetinc„Lof August 13 2002 (4) Special Citv Council Meetana of August 21.2002: (5) Special City Council Meeting of August 21 2002 (6) Special Citv Council Meetma of August 27. 2002 (7) Special Citv Council Meeting of August 28 2002 and (8) Special City Council Meeting of August 28. 2002. Council Meeting Minutes -2- September 12, 2002 Motion carried 40. :- 'COUNCIL' DISCUSSION Council Member Ulrich requested a Special City Council meeting notice be posted for the Chamber of Commerce meeting on September 25, 2002 at noon at the Ft. Snelling Officers Club. Council Member Rosenberg thanked Council Member Ulrich for organizing the Patriots Day event at the Richfield VFW on September 11, 2002. Council Member Rosenberg reported on Interchange West area Property tax information for 1999 without Best Buy and 2003 with Best Buy. She asked staff to provide information on the budget impact related to the increased Best Buy payable taxes. Council Member Ulrich reported on three communication pieces prepared by Public Safety that she found to be most helpful. Mayor Kirsch amved. Council Member Ulrich reported on a recent meeting she and Council Member Sandahl had with Senator Roger Moe and that she had with Senator Mark Dayton. Council Member Sandahl stated that as a result of comments received during her door knocking, and a way to improve the City's appearance, she suggested the City Council consider the establishment of a Beautification Committee. Mayor Kirsch stated support for establishing this committee. Council Member Rosenberg reported she is currently working with the Historical Society, Richfield Garden Club and the Chamber of Commerce to establish a Richfield Home and Garden Club. Mayor Kirsch read a proclamation designating September 2002 "To Commemorate the Anniversary of 9-11 Attacks with Special Recognition of Peace Officers, Firefighters and Military Personnel". Mayor Kirsch reported on the City receiving the 2002 Age Odyssey Award for Increasing Community Capacity for providing an excellent model for cities that want to become more age- friendly and view older adults as a resource to the community. He said Richfield is the first City in the State to receive this award. Mayor Kirsch read a Certificate of Commendation from the State of Minnesota signed by the Governor, in recognition of Richfield Increasing Community Capacity. Mayor Kirsch acknowledged two Richfield residents who were recognized as part of the KARE 11 Who Care program for their volunteer efforts - Nel Swanson and Frank Johnson. Item #1 COUNCIL APPROVAL OF AGENDA M/Ulrich, S/Sandahl to approve the agenda. ~~ . Motion carried 5-0. Council Meeting Minutes -3- September 12, 2002 Item #2 CONSENT. CALENDAR ; ~ _ A. Approved resolution determining results of City Primary Election held on Tuesday, September 10, 2002 S.R. No. 209 RESOLUTION N0.9227 RESOLUTION DETERMINING RESULTS OF THE PRIMARY ELECTION OF THE CITY OF RICHFIELD HELD ON TUESDAY, SEPTEMBER 10, 2002 This resolution appears as Resolution No. 9227 in Resolution Book No. 74. B. Approved resolution establishing just compensation and authorizing the purchase of the American Family Insurance building at 6700 Cedar Avenue {Airport Noise Acquisition Program) S.R. No. 210 RESOLUTION NO. 9228 RESOLUTION ESTABLISHING JUST COMPENSATION AND AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 6700 CEDAR AVENUE AIRPORT NOISE ACQUISITION PROGRAM This resolution appears as Resolution No. 9228 in Resolution Book No. 74. C. Removed from the consent calendar and placed on the regular agenda for consideration as Item 3. D. Removed from the consent calendar and placed on the regular agenda for consideration as Item 3. E. Approved resolution appointing Paul Skaiem to the Richfield Tourism Promotion Board S.R. No. 213 RESOLUTION N0.9229 RESOLUTION APPOINTING A REPRESENTATIVE TO THE BOARD OF DIRECTORS TO THE RICHFIELD TOURISM PROMOTION BOARD, INC. This resolution appears as Resolution No. 9229 in Resolution Book No. 74. F. Approved itinerant amusement and itinerant food licenses for Richfield Visions, Inc., for Richfield Cattail Days events, September_-21, 2002 S.R. No. 214 Mayor Kirsch removed Item 2C from the Consent Calendar and placed in on the regular agenda as Item 3. Council Member Enger asked to remove Item 3D ftom the Consent Calendar and place it on the regular agenda as Item 3. M/Rosenberg, S/Sandahl to approve the Consent Calendaf as amended. Motion carried 5-0. Council Meeting Minutes -4- September 12, 2002 ,, ~ - Item #3 'CONSIDERATION OF ITEMS, IF ANY,,~REMO ~• ~i~SENT,CALIL~~AR'`-!~: i _ ~ ~Sisa3 .yam ~ F Item 2C. CONSIDERATION OF APPROVAL OF RESOLUTION ESTABLISHING JUST COMPENSATION AND AUTHORIZING THE PURCHASE OF THREE APARTMENT BUILDINGS LOCATED AT 6328, 6344 AND 6400 CEDAR AVENUE (AIRPORT NOISE ACQUISITION PROGRAM) S.R. No. 211 Council Member Sandahl said because of recent discussions with a resident in the area adjacent to 18th Avenue, she is requesting a City Council Worksession to discuss policy issues and property purchasing strategy for the Airport Noise Acquisition Program. She said this did not mean the program will not move forward in this area, but to ensure policies are in order. M/Sandahl, S/Rosen Motion carved 5-0. Item 2D. CONSIDERATION OF APPROVAL OF FIRST READING OF ORDINANCE AMENDMENT TO RICHFIELD CITY ZONING CODE SECTIONS 536.11; 536.17; 536.19; 536.21; AND 536.25 S.R. N0.212 ~-- rT Council Member Enger questioned the amended State Statutes related to procedures municipalities must follow when approving a rezoning. City Attorney Thomson explained the zoning changes in some cases that will allow a simple majority rather than atwo-thirds vote of the City Council. She explained her concerns and reasons for the proposed zoning code changes related to bringing the zoning codes into compliance with State Statute. Ms. Thomson said some changes are related to minor amendments to a Final Development Plan that would allow staff to approve administratively and not bring before the City Council. Council Member Enger said he did not agree with the minor amendment related to parking lot changes being handled administratively. He stated the City Council needs to maintain more control to changes in planned unit developments and conditional use permits, even if there are minor changes. Council Member Enger said he did not support reducing the-$500 fee for a minor amendment to a planned unit development to $250. He said he would like to hold the fee at $500 to try to hold taxes down. He said it doesn't make sense to have the City Council wanting to increase fees one week and then staff suggesting a reduction in fees the next. He suggested increase the fee for major amendments to $750. . Council Member Enger did not support changing allowable uses within each planned unit development district to a guiding district, which corresponds to each planned unit development district, because the original district use needs to be considered. City Attorney Thomson explained instances where original district considerations would not be practical, but rather what district to look to for use guidelines. She said the provisions provide more protection with required public notices and an City Council extraordinary majority vote. M/Rosenberg, S/Sandahl Council Meeting Minutes -6- September 12, 2002 RESOLUTION N0.9224 RESOLUTION AUTHORIZING BUDGET REVISIONS RESOLUTION N0.9225 RESOLUTION AUTHORIZING REVISION OF 2002 BUDGET OF VARIOUS DEPARTMENTS RESOLUTION NO. 9226 RESOLUTION AUTHORIZING USE OF PUBLIC EMPLOYEES RETIREMENT ASSOCIATION POLICE AND FIRE FUND REFUND INTEREST EARNINGS FOR CERTAIN POLICE AND FIRE EXPENDITURES Council Member Rosenberg commended the majority of the City Council and the City staff for their review of a difficult budget situation and trying to accommodate the tax changes. Mayor Kirsch stated direction is given to staff at the annual City Council goal setting session in January and they are to be commended for their efforts in preparing the budget. Council Member Sandahl commented on the September 12 Sun Current Letter to the Editor from a former City employee, Jennifer Verbrugge, as an excellent response to a difficult situation. City Manager Orduno stated if additional local government aid (LGA) is lost, the City would have to make more budget cuts or dip into reserves. Council Member Enger questioned the following: • Summary of investments • Equipment certificates • General Fund fund balance • Formula to set amount of levy • Tax capacity rate • Determination of property tax valuations by Hennepin County Administrative Services Director Devich and Finance Manager Regis responded to Council Member Enger's questions. Council Member Ulrich stated the budget needed careful monitoring so the City does not borrow money to pay bills. Council Member Rosenberg stated the City Council needs to take credit for making sure the City remains solvent. Council Member Sandahl gave credit to past City Council Members who approved tax increment financing and that now a district is being decertified, which will bring money to the City. Council Member Enger requested a City Council Worksession to review the tax levy formula. Council Member Enger stated the phrase "do less with less° is disturbing because people who pay taxes don't like to hear that - it should be working smarter with less. City Manager Orduno said reductions in service have been made, but the level of service is near what has been expected in the past and shifted to what residents really want. She said the quality of services is evaluated every year. She said the budget reductions have not been made to burden the taxpayers. Motion carried 4-1. (Enger opposed.) These resolutions appear as Resolution No.'s 9223, 9224, 9225 and 9226 in Resolution Book No. 74. -- Council Meeting Minutes -5- September 12, 2002 Council Member Sandahl said the zoning code needs to comply with State Statute guidelines. She stated support for staff to handle minor changes admirnstratively. She added that fees need to accurately reflect the time and effort spent and not be used to make money, but to recover City costs. Community Development Manager Stark stated the fee reduction is proposed because less staff time is needed on minor changes. He said fees also need to be in line with neighboring communities. Council Member Ulrich stated she had concerns about changing parking lot configurations and spaces because of current parking problems, but realizes minor changes wouldn't be too big and could be handled administratively. She said anything that holds up the.process, increases costs. She stated support for the proposed changes because it speeds up the zoning process and saves money. Mayor Kirsch stated the Planning Commission has reviewed and approved the zoning code changes. Motion carried 4-1. (Enger opposed.) City Attorney Thomson said staff would provide additional parking information at the public hearing. Mayor Kirsch requested the Planning Commission Chair attend the public hearing. Item #4 CONSIDERATION QF APPROVAL OF-2002 REVISED/2003 BUDGET RESOLUTIONS ADOPTING2003 PRELIMINARY LEVY, SETTING TRUTH IN TAXATION HEARING''DATES, BUDGET'REVISIONS, AUTHORIZING,RE~/ISION:aF'3002 E ' VARIOUS:DEPARTMENTS, AND AUTHORIZING tlSE OF P "EMPLOYEES RETIREMENT ASSOGIATIQN POLIGE AND F Il. aV.^\LV'J.Lr\i:1~1~~<VV ~ V~\ ~ V~~V+ !-f~ City Manager Orduno reviewed Staff Report No. 215 regarding consideration of the 2002 Revised/2003 Proposed Budget resolutions adopting 2003 preliminary property tax levy, setting the truth in taxation hearing dates, authorizing budget revisions, authorizing a revision of the 2002 budget of various departments and authorizing the use of Public Employees Retirement Association Police and Fire Fund refund interest earning for police and fire expenditures. City Manager Orduno stated the information related to the State imposed levy limit has now been received. She said that the bottom line is a vast majority of Richfield homes will see a reduction in their overall property tax. She said, tonight, the City Council needs to approve the preliminary levy which is at the maximum and cannot be increased, but can be reduced. City Manager Orduno explained the shift in cities revenue sources to the schools. Administrative Services Director Devich presented information on the 2003 Proposed Property Tax Levy (Clerk's File No. C-386). He discussed the tax capacity rate and fiscal disparities impact under the current tax laws. M/Rosenberg, S/Ulrich that the following resolutions be adoated, that thev be spread in the resolution book that thev be made Hart of these minutes: and settinq the truth in taxation hearing dates for December 2.2002 at 6:30 p.m. with continuation to December 9.2002 at 6:30 a.m.: RESOLUTION NO. 9223 ry RESOLUTION ADOPTING A PROPOSED BUDGET AND TAX LEVY FOR THE YEAR 2003 Council Meeting Minutes -7- September 12, 2002 _ _ ~ ~5 - ._ _ e., ~ ~ 4 Item #5 -~YCONSIDERATION OF AUTHORI2ATION:OF THE P fRCHASiOIEW 1; ". CO~IiJNG TOIA(ER IN THE AMOUNT OF:$28,42$.78 AND REBl~~ ~ V $ ~ ~. COMPRESSOR IN THE AMOUNT flF•.$1:7017r63' F~RRINK,'~NO:OF THE i f . =RICHFIELD ICE ARENAS.R.N0~2.16 -, s._ ;•:'. `.:~~. .:, . ~: •:~ ~ F~ ~ _"~ t~: ': City Manager Orduno reviewed Staff Report No. 216 regarding the purchase of a new cooling tower in the amount of $28,423.78 and a rebuilt compressor in the amount of $17,017.63 for Rink Two of the Richfield Ice Arena. Facilities Manager Payne provided the background related to the purchases for the arena. Council Member Rosenberg asked the life expectancy and guarantee for the cooling tower. Mr. Payne stated water treatment affects the maintenance, but~very rarely is the life less than 20 years. Council Member Enger said he believed the City was sold a bill of goods by the people who wanted the second ice sheet and it doesn't pay for itself. Mr. Payne said the losses with the ice second sheet are comparable to the losses with only one ice sheet. Council Member Rosenberg said she did not believe the second ice sheet was a bill of goads and it has benefited the residents. Council Member Enger clarified he supports the ice arena, but would have preferred the purchase of new versus rebuilt mechanical equipment at the beginning; _ Motion carried 5-0. Item #6 CONSIDERATION.OF DESIGNATItaN;OF ARICHFIELD REPRESENTATIVE ," ' AND ALTERNATE TO THEMINNEAPOLIS/ST. PAUL.INTERNATIONAL AIRPORT'S'(MSP):NOlSE OVERSIGHT COMMITTEE S.R. NO. 21.7. - Assistant to City Manager Dmytrenko provided background information related to the• establishment of the Minneapolis/St. Paul International Airport's (MSP) Noise Oversight Committee. S/Sandahl Motion carried 5-0. S/Kirsch .~ Motion carried 5-0. Council Member Rosenberg said she supported the purchase because the ice arena is important to the community and no revenue should be lost. • Council Meeting Minutes -8- September 12, 2002 Item #7 CONSIDERATION OF. APPOINTMENT OFCOUNCl~;~S p ~~' TOs .,~ ~, MOVE., {{AN,_,~RGANI~r4T10~1~ADVOCATING~INCREA . . ~ ` G "t~? #.~, , ~.. ~. :REC+ONSTRUGT~1-49~AID 135{lll SR. IVQ ~?'18 = ~ '~ ~ ~ ': ' '~ ~ r City Manager Orduno reviewed Staff Report No. 218 regarding the appointment of a Council representative to MOVE, an organization advocating increased funding to reconstruct 1- 494 and I-351IV. M/Kirsch, S/Rosenberg to appoint Council Member Sandahl as the City's representative to the MOVE organization. Motion carried 5-0. Council Member Sandahl said that being a member of MOVE does not mean serving on their board. City Manager Orduno said the City Attorney would review the appropriateness for the City's continued membership. . Item #8 CONSIDERATIONS OF CON5IDERATION OF APPOINTMENTS TO FILL,YOUTfl`° TERMS ON CITY ADVISORY`COMMISSIONS S.R. NO. 219 , '~ '& ~~, Mayor Pro Temporte Sandahl read the following youth commission appointments to fill expiring or vacant terms: ADVISORY BOARD OF HEALTH Name Term Expires Gabriel Holl August 31, 2003 HUMAN RIGHTS COMMISSION Name Kevin Davy Jessica Lockwood Term Expires August 31, 2003 August 31, 2003 FRIENDSHIP CITY COMMISSION Name Term Expires William Reiff August 31, 2003 Derek Kruse August 31, 2003 Mayor Kirsch thanked the Academy of the Holy Angels and Richfield High School staff for their assistance and encouragement during this recruitment. M/Sandahl, S/Rosenberg to appoint persons to fill the vouth terms on the City's advisory commissions. - Motion carried 5-0. -- Item #9 >CITY MANAGER'S. REPORT Council Meeting Minutes -9- September 12, 2002 City Manager Orduno announced the Joint Airport Zoning Board is considering amendments to the MSP Zoning Ordinance. A public hearing well be held at the Thunderbird Hotel on September 26 beginning at 6:30 p.m. with an open house to answer questions at 5:30 p.m. Council Member Sandahl said a reception related to the Lyndale-Hub-Nicollet tax increment financing district decertification is scheduled for 6:00 p.m. on September 16, prior to the Regular HRA meeting in the Council Chambers. Council Member Sandahl requested a Special City Council meeting notice be posted for the 35W Solutions Alliance Legislative Candidate Forum on October 2 at 7:00 p.m. in Richfield City Hall. She said the legislative candidates along the corridor north of the river are attending the forum. Item #13 .CLAIMS AND PAYROLL. M/Rosenberg, S/Sandahl that the following claims and payrolls be approved: RICHFIELD BANK & TRUST CO. 8-27-02 INT Checks: 117962-117998 H/C 117999 -118319 PAYROLL 100500 -164100 $ 250,067.67 $ 2,261,672.23 $ 448,485.06 TOTAL RICHFIELD BANK 8 TRUST CO. 9-10-02 !NT Checks: 118320-118339 H/C 118340-118597 PAYROLL 32376 - 32536 TOTAL Motion carried 5-0. OREN FORUM No one addressed the City Council. ADJOURNMENT $ 2,960,224.96 $ 71,443.19 $ 795,465.32 $ 492,292.96 $ 1,359,201.47 The Regular City Council meeting was adjourned by unanimous consent at 8:50 p.m. Date Approved: Martin J. Kirsch Mayor Cheryl Krumholz Recording Secretary Samantha,Orduno City Manager AGENDA SECTION: Consent AGENDA ITEM # 4A REPORT # 220 STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 24, 2002 REPORT PREPARED BY: REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: NANCY GIBBS, CITY CLERK NAME, TITLE GIBBS, CITY CLERK ITEM FOR COUNCIL CONSIDERATION: Consideration of the attached resolution appointing additional election judges for the November 5, 2002 General Election. I. RECOMMENDED ACTION: By Motion: Adopt the attached resolution appointing additional election 'ud es for the General Election on November 5, 2002. II. BACKGROUND Minnesota Statute 2046.21 Subd. 2 provides that election judges for precincts in a municipality shall be appointed by the governing body of the municipality and that the appointments be made at least 25 days before the election at which the election judges will serve. _ On August 13, 2002, the City Council passed Resolution No. 9222, which appointed as election judges individuals whose names were on the updated election judge availability list. That appointment by the City Council allowed for them to serve as election judges at the Primary Election, the General Election or both elections. Election judges are assigned to the precincts based ,on availability, party balance and the number required for each election. The General Election will require assignment of the greatest number of available judges. 0924election Since the August 13 City Council appointment of election judges, the City Clerk's ___ office has received several additional names of individuals who are eligible and able to serve as election judges for the Tuesday, November 5, 2002 General Election. III. BASIS OF RECOMMENDATION A. POLICY • The City Council is required by State Statute to make election judge appointments at least 25 days prior to the election. • The proposed resolutions contain names of those qual~ed individuals who have indicated a willingness and ability to serve as an election judge for the November 5, 2002 General Election. B. CIUTICAL ISSUES • If the City Council does not appoint additional election judges, the conduct of the election would be hindered. C. FINANCIAL • Election judges are paid the following compensation: Chair $8.00 per hour Assistant Chair $7.50 per hour Judge $7.25 per hour D. LEGAL • Compliance with Minnesota Statute 2046.21, Subd. 2 regarding election judges. • The General Election will be conducted on Tuesday, November 5, 2002. Therefore, the City Council should appoint additional election judges to serve at this election. IV. ALTERNATIVE RECOMMENDATION(S~ • The City Council could choose not to appoint the additional individuals who are named on the resolution to serve as judge. V. ATTACHMENTS • Resolution appointing additional election judges for the General Election of November 5, 2002. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None. RESOLUTION NO. RESOLUTION APPOINTING ADDITIONAL ELECTION JUDGES FOR THE GENERAL ELECTION OF NOVEMBER 5, 2002 WHEREAS, a General Election will be held on Tuesday, November 5, 2002. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, that the following are hereby appointed as judges for said election: Ralph Anderson Bernice Utter Delores Armstrong Kris Dahl Brian Kroulik Betty Peltola Elayne Gilhousen Helen Hillstrom Evelyn Johnstone John Power Sunny Ray Joann Schuldt Phyllis Unger Rebecca Guarinc Becky Spitrack William Stixrud Patricia Bailey Pat Cantin Lee Ohnesorge Sheila Fitzgerald Ame Garvander Kathryn Hinton Cynthia Mandl Arloueen McGuire Fiona Payne Earl Kommerstad Belen Andrada Anthony Bowen Elaine Wetsch Judy Shuneson Faye Sprecker Linda Nemitz ~ Sandra Schmidt Carol Devries Norma Martin Dorothy Wulf Cynthia Davy Diane Healy Nancy Hoon Mary Lou Janco Allan Parker Kathryn. Voigt-Johnson William Andersen Cheryl Avenson Gladys Hamemes Sue Blumberg Geraldine Cooper Joanne Dentinger Denise Eckerman Peg Gallagher Helen Volz Betty Harrington Marilyn Jackola-Roetman Judy Schultz . Jim Butler Joan Helmer Thomas D. Keegan Cindy Prince Monica Ann Mullerleile Gladys Denesen Jenee Honnigford Robert Doebler Marion Homing Reed Harms Bob Houlton Emil Koebnick Karin McComb Dawn Nilsen Ernest Ackerly Jeffrey Wood Charles Bauer Jr. Stanley Cromer Myrtle Thom Loretta Root Geraldine Nachicas Katherine Nordquist Doug Lund Virginia Keough Doris Arnold George Larson Claire Larson Barbara Peterson Betty Elenbaas Pat Toney Helen Peterson Glady Rudy Carol Athey Lorraine Schanzenbach Darlene Colbenson Marie Dallager Beatrice Batchelor Delrose Desrosier Charles Devries Marguerite Dozois Catherine Donoho Sheila Duscher Dee Ann Edlund Cherill Lindquist Mary Jo Fadell Harriet Ring Lester Loney Charlene Swanell Marlene Odegard Lois Omlie Dorothy Stinger Jean Swenson Ed Thom Jason Stroth Lee Ann Thomas James Weeks Roger Guarinc Jon Schoonmaker Carol Brochu ~Cari Henschel Susanne Erickson Robert Volsted . Diane Henjum June Dorothy Houlding Norman Johnson And, that these names be added to the list of those appointed as election judges in Resolution No. 9222. PASSED by the City Council of the City of Richfield, Minnesota this 24th day of September, 2002. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk AGENDA SECTION: Consent AGENDA ITEM # 4B REPORT # 221 ~~ STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 24, 2002 REPORT PREPARED BY: STEVEN L. DEVICH, ADMINISTRATIVE SERVICES DIRECTOR N.ufE, Ti7'[.E REPORT PRESENTER: STEVEN L• DEVICH, AD S TIVE SERVICES DIRECTOR -~ NMfE DEPARTMENT DIRECTOR REVIEW: Y / i SIGNATURE REVIEWED BY CITY MANAGER: ~ ~ _~~ ~_ ^ ~ _ ~ ITEM FOR COUNCIL CONSIDERATION: Consideration of the attached resolution establishing authority for a Health Care Savings Plan for eli ible Ci of Richfield em to ees. I. RECOMMENDED ACTION: . By Motion: Adopt the attached resolution authorizing the . establishment of a Health Care Savings Plan for eligible City of Richfield employees. II. BACKGROUND In 2001, the Minnesota Legislature granted authority to the Minnesota State Retirement System (MSRS) to offer a post retirement health care savings plan to eligible employees of the State of Minnesota and other govemmental subdivisions. MSRS was authorized to administer these plans after they were adopted by governmental subdivisions throughout the State. A post retirement health care savings plan is an employer-sponsored program that allows employees to save money to pay medical expenses and/or health insurance premiums after termination of public service. Employees are able to choose among different investment options provided by the State Board of Investment. Assets Q924HealthCareSavingsPlan contributed into the program are tax-free, accumulate tax free, and if used for medical expenses, remain tax-free. Legal authority to establish such plans is provided through Minn. Stat. 352.98 and Internal Revenue Service rulings. The establishment of each plan, including contribution formulae, must be negotiated where dealing with a collective bargaining unit or personnel policy where non-union employees are involved. Once established, the plan must be filed with MSRS to initiate the program. Participation for each individual employee within a bargaining or employee group is mandatory once the plan is established for that respective group. Moreover, the amounts contributed for or by each employee in a particular group must be the same for every employee of the group. Contributed amounts between employee groups may vary, however. To date, only the Management employee group has come to an agreement concerning the implementation of this program. Other employee groups have expressed an interest and staff will be pursuing this matter with those groups based upon a plan design similar to the one agreed upon by the Management group. III. BASIS OF RECOMMENDATION A. POLICY • The State Statutes have been amended to provide the opportunity for a very valuable benefit to city employees. The City of Richfield is pursuing this benefit with employee groups that are interested in such a mandatory plan. • Approval by the City Council of the attached resolution will provide the City authority to proceed with this program for employees not represented by a collective bargaining unit. Union groups may choose to pursue this benefit through their respective collective bargaining agreements. ` B. CRITICAL ISSUES • There is no time critical issue pertaining to the implementation of this plan. However, the majority of Management employees have expressed a desire to implement the program so it should be pursued at the earliest opportunity. • After City approval, this plan must be submitted to MSRS for their approval and filing. C. FINANCIAL • There is no cost to the City in this version of the plan since the City makes no contribution. In fact, there is a cost savings to the City in that wages and severance pay that the employee contributes to the Health Care Savings Plan are not subjeEt to Social Security or Medicare contributions. • The plan provides a great tax savings to the participating employees and provides a tax mechanism to fund post retirement medical costs. D. LEGAL • There is legal authority for this plan in the Minnesota Statutes and IRS Code. IV. ALTERNATIVE RECOMMENDATION(S~ The City Council could decide not to approve this plan or to change the employee contribution limits proposed. However, if the City Council chooses to do so, this program should be resubmitted to the employee group to ascertain if there is still an interest to proceed. V. ATTACHMENTS ~ • Resolution • Post Retirement Health Care Savings Plan Post Retirement Health Savings Plan Questions and Answers VI. PRINCIPAL PARTIES EXPECTED AT MEETING None RESOLUTION NO. ~= RESOLUTION AUTHORIZING THE ESTABLISHMENT OF A POST RETIREMENT HEALTH CARE SAVINGS PLAN FOR MANAGEMENT EMPLOYEES WHEREAS, the Laws of Minnesota 2001, Chapter 352.98, authorize the Minnesota State Retirement System (MSRS) to offer a Post Retirement Health Care Savings Plan (Plan) program to state employees as well as other governmental subdivisions; and WHEREAS, the Internal Revenue Service Code provides for such Plans; and WHEREAS, the City of Richfield is interested in offering the Plan to eligible City employees as a tax free method for employees to set aside money to cover the ever increasing costs of health insurance and medical costs after termination of public employment; and WHEREAS, such plans must be established by employee group, either through a collective bargaining agreement for union employees or a personnel policy for employees not covered by a collective bargaining agreement; and WHEREAS, the provisions of a Plan have been agreed to by the Management group of City employees and the City of Richfield; and WHEREAS, the proposed plan is a net savings to the City of Richfield. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Richfield hereby authorizes the City Manager to establish a Health Care Savings Plan for the Management group of employees in the City of Richfield. Adopted by the City Council of the City of Richfield, Minnesota this 24th day of September 2002. Martin J. Kirsch; Mayor ATTEST: Nancy Gibbs, City Clerk ,• Policy: Post Retirement Health Care Savings Plan Section: Approved by: Effective Date: Page: 1 of Plan Purpose The City of Richfield is interested in establishing a means for eligible employees to participate in a mandatory program to help defray some of the costs of post employment health related expenses, including health insurance premiums using pre-tax dollars. Participation in the Post Retirement Health Caze Savings Plan, administered by the Minnesota State Retirement System (MSRS), is intended to provide an opportunity to accomplish that goal Post Retirement The Post Retirement Health Care Savings Plan (HCSP) is an Health Care Employer-sponsored program that allows eligible employees to: Savings Plan 1) defer payment of a portion of unused vacation and personal leave as a severance payment at the time of termination to pay for eligible health insurance premiums and/or health expenses after separation from City service, and 2) defer a portion of an Employees' bi-weekly salary for deposit into their HCSP for the payment of qualified healthcare related expenses after separation from City service. Employees will be able to choose among several different investment options provided by the Minnesota State Boazd of Investment. Under the Plan, amounts contributed into the HCSP aze tax-free and not subject to FICA contributions. Assets in the HCSP will accumulate tax- free and since payouts aze used: for qualifying medical expenses, they will also remain tax-free. Eligibility to Participation in the HCSP is mandatory for all employees that meet Participate the following requirements: 1. The Employee must be a member of the Richfield Management Pay Classification Plan at the time of termination of employment, and 2. The Employee must have been continuously employed by the city of Richfield for at least 3 consecutive yeazs. Contribution Mandatory participation in the HCSP shall be in accordance with, and Formula limited to the following formulas for contributions: I. Bi weekiy Contribution 1. An eligible Employee must contribute $16 uer pav period to the Employee's account in the HCSP. Such contributions shall not exceed $16 per pay period. II. Severance Contribution 1. Severance shall be paid in cash for the first 80 hours of accumulated but unused Personal Leave. Severance based on accumulated but unused Personal Leave in excess of $0 hours shall be paid as a credit to the Employee's account in the HCSP. 2. Severance shall be paid in cash for the first 80 hours of accumulated but unused Vacation Leave. Severance based on accumulated but unused Vacation Leave in excess of 80 hours shall be paid as a credit to the Employee's account in the HCSP. 3. All severance payments based upon Personal & Vacation Leaves aze calculated as described above, by multiplying the number of hours by the applicable rate of pay. Contributions authorized under this Plan shall continue until such time as this policy is amended or repealed by the City of Richfield. HCSP The HCSP is authorized under the Internal Revenue Code and is Administration administered by the Minnesota State Retirement System Post Retirement Health Cnre Scorings Plan Administered by the Minnesota State Retirement System Draft as of 9/11/01 What is the post retirement health core savings plan? The post retirement health care savings plan is an employer-sponsored program that allows employees to save money to pay medical expenses and/or health insurance premiums after termination of public service. Who chooses how much and what dollars will be put into the post retirement health care savings plan? Employees covered by o bargaining unit. Amounts to be put into the nccourrt must be negotiated or agreed to by both the bargaining unit and employer. Employees will be able to choose among seven different investment options provided by the State Board of Investment. Assets in the program will accumulate tax-free, and if pa)routs are used for medical expenses, they will remain tax-free. 1~dnet legal authority exists to offer the post retirement health care savings plan? Laws of Minnesota 2001, Chapter 352.98, authorizes MSRS to offer this program to state employees, as well as, all other governmental subdivisions. The Internal Revenue Service authorizes government bodies to establish "funds" which are deemed to be an "integral part" of the organization. IRS rulings state that providing employee welfare benefits to retirees is an "essential function" of state or local government's activities. The IRS also deemed that providing retiree health benefits is an "essential function." Therefore, it is considered an inrtegral part of the government's activities and as a result it enjoys the entity's tax exempt status. (In Treasury Regulation Section 301.7701-1(ax3)) Employees not covered by a bargaining unit. Amounts to be put into the accaur~fi must be included in a personnel polity and must cover all employees covered under the personnel arrangement. ~~ A key componerrt to keep the tax advantages of the post retirement. health care savings plan is that all employees covered under a specific bargaining unit must be treated the some. Each employee cannot be given n choice of whether or not to participate. The amount and type of money to be put into the account must apply to all employees within the bargaining unit. You can have differences among various bargaining units, and you need not cover all groups of employees. What type of money can be put into the account to receive the favorable tax treatment? Mainly, there are three ways to set aside money under the post retireme~ health core savings plan and receive favorable tax treatment. Page 1 np/oyer Contributions--For example, an ployer could elect to put n specific dollar amount into employees' accounts, or set aside a percentage of employees' salary into the accounts. Mandotory Employee Contributions-For example, a portion of the next salary increase could be required to be set aside in a health care reimbursement account. Severonce Pa}~-Many public employers pay unused vacation or sick leave as severance pay at the time of termination. All or a portion of the severance pay may be put into the post retirement health care savings plan. What are the benefits for your employees? The post retirement health care savings plan allows employees to set oside money as active employees to cover the ever-increasing costs of health insurance or medical expenses after termination of public service. While deferred compensation plans or retirement accounts provide ntax-deferred benefit, amounts paid out are considered taxable income. Under the post retirement health care savings program, amounts contributed are tax-free and no taxes are paid on amounts paid as long as they are used to pay health and dental insurance premiums or used to cover out-of- pocket medical expenses. - This tax advantage could result in significant savings for employees. For example, let's say an employee is eligible for $5,000 in severance. If paid in cash -after subtracting federal, state, and FICA taxes, the net amount of the payment would be approximately $3,000. If that same amourrt were saved in the post retirement health care savings plan the entire amount of $5,000 would be available to provide health care coverage. `~ No forfeiture of funds upon an employees death. Amounts in the post retirement health care scorings plan can be transferred to an employee's spouse or dependent children. If none, the plan allows for the account balance to be paid out to a designated beneficiary or the estate. At this point the payment is subject to state and federd taxes; however, it is still exempt from FICA (7.650. What are the benefits for the employer? The post retirement health care savings plan allows you an opportunity to offer aloes-cost benefit that your employees can use to cover the rising cost of health care. There ore several benefits to employees: f~' You control the amount paid into the progrart- and who should be eligfb/e for benefits. P No unfunded liabilities: Amounts contributed on behalf of an employee are put into her/his account and can be used by the employee until the account balance is exhausted. ~ Ernp/oyer eliminates FSCA cost: Amounts contributed to the plan are exempt from Social Security and Medicare taxes for both the employee and employer. Again using the example of severance pay, if $5,000 were put into the post retirement health care savings plan, the employer would save 7.659'° or $382.50. (The legislation creating the plcut provides that a portion of the 7.65% savings is to be paid to MSRS until the $75,000 start-up costs of the plan are recovered. We will assess employers an amount equal to 0.5~ of the total amount contributed on behalf of your employees until these casts are recovered. Start-up costs include the legal documents necessary to establish the program, computer programming, and printing of materials. We will notify employers when the $75,000 is recovered.) Page 2 Low cost The fees to administer the plan deducted from an employee's account. Employees will also be charged 0.15 of their account balance each quarter (0.60 per year). For example, if an employee had an account value of $10,000, $15 per quarter will be deducted from the employee's account. The maximum annual fee charged on an account will be $140 or $35 per quarter. All fees are subject to charge. What responsibilities does the employer have regarding the administration of the post retirement health care savings plan? The main responsibility is to determine how much will be corrtributed to the pion and making contributions to the plan on behalf of eligible employees. We will provide you with employee enrollment kits to get employees started. A copy of the file layout that you will use to send contributions to MSRS is located at the end of this document. The file layout is also available on the MSRS Web site at www.msrs.state.mn.us. MSRS will maintain enrollment forms and employee beneficiary designations. How does an employer begin participation in the post retirement health care savings plan? The employer contacts MSRS to receive further information and sample enrollment kits (enrollment materials are available on the MSRS Web site at www.msrs.state.mn.us click on the health care button}. If you would like, n member of our staff can meet with you to further explain how the plan works. The employer determines what benefits will apply to various groups of employees. Benefits must be bargained for employees covered by collective bargaining or established in a personnel polity for employees not covered by collective bargaining. Once the program is approved, you would mail provided enrollment kits to eligible employees. Employees will be asked to submit enrollment materials to you, which will then be forwarded to MSRS. If you provide us with addresses for your employees, we can follow up on any forms that are not returned. Deductions will be made electronically using the file layout that is provided. How do employees get started? The employee recervrves an enrollment kit and returns the enrollment form to the employer. These forms are forwarded to MSRS. The forms ask for data such as name and address as well as beneficiary designations. Those forms are forwarded to MSRS. We ask that each employer provide indicative data of all eligible employees electronically which will allow us to follow up on employees who do not submit an enrollment form. We will send a welcome letter to participants, providing them with a personal identification number (PIN) to be used to access account information and change imestmerrt allocations. Irnestment allocations by participants can be submitted on the MSRS Web site or on n paper document. How will employees' assets be invested? Employees will be able to choose among seven different investment choices. Since these accounts are only valued at the end of the month, an employee can change investment selections once per month. Employees can corrtribute to as many of the seven available investmerrrs as they wish. Page 3 AGENDA SECTION: Consent AGENDA ITEM # 4C REPORT # 222 ~- STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 24, 2002 REPORT PREPARED BY: KEVIN J. MCGINTY, FIRE CHIEF NaME Time REPORT PRESENTER: KEVIN J. MCGINTY, FIRE CHIEF NAMe, TITLe DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of the attached resolution to amend membership listing of the South West Fire Lea ue Mutual Aid Association of which the Richfield Fire De artment is a member. I. RECOMMENDED ACTION: By Motion: Approve-the attached resolution to change the name of a member of the South West Fire Lea ue. II. BACKGROUND Richfield is a member of the Southwest Fire League Mutual Aid Association..lt is a group of 14 agencies who have agreed to help one another in the event of a major fire, natural or technological disaster. The City of Excelsior Fire Department is a member but has changed to the Excelsior Fire District and would like to continue to be a member of the association. III. BASIS OF RECOMMENDATION A. POLICY • Richfield relies on this association for additional assistance during emergency situations. 0924fire B. CRITICAL ISSUES ~. • In the event of necessary additional assistance, the suburbs including City of Excelsior Fire District will be mutually dependent on one another to provide emergency response. C. FINANCIAL • The mutual aid agreement means there are no financial charges when departments assist one another. D. LEGAL • Existing mutual aid is in place. N. ALTERNATIVE RECOMMENDATION(S~ • Do not approve the resolution. V. ATTACHMENTS • Resolution. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None. RESOLUTION NO. RESOLUTION APPROVING CHANGE TO EXHIBIT A OF THE SOUTHWEST MUTUAL AID AGREEMENT WHEREAS, the City of Richfield; has previously approved and participated in a mutual aid agreement between the southwest suburban governmental agencies to provide cooperative use of fire personnel and equipment; and WHEREAS, the agencies participating in this agreement have been designated the Southwest Mutual Aid Association; and WHEREAS, the existing agreement requires the parties of the agreement to approve by resolution a new Exhibit A to add a new member to the agreement; and WHEREAS, the City of Excelsior Fire Department was a member but has changed to the Excelsior Fire District and would like to continue to be a member of the Association. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota that: The revised Exhibit A dated July 25, 2002, which includes the Excelsior Fire District, is hereby approved as the new official list of parties to the agreement establishing the Southwest Mutual Aid Association. The City Clerk is directed to transmit a certified copy of this resolution to the secretary of the Southwest Mutual Aid Association. Adopted by the City Council of the City of Richfield, Minnesota this 24th day of September, 2002. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk .~ Southwest Mutual Aid Association Joint And ~'ooperative Agreement For Use Of Fire Personnel And Equipment I. PURPOSE This Agreement is made pursuant to Minnesota Statutes Section 471.59, which authorizes the joint and cooperative exercise of powers common to contracting Parties. The Parties to this Agreement wish to create a regional Mutual Aid Association, hereafter called the Southwest Mutual Aid Association, for the purpose of making fire equipment, personnel and facilities available to each other upon request. This Agreement is intended to give each Party the authority to send its equipment and personnel into the other communities and to provide for an Operating Committee to administer this Agreement. DEFINITION OF TERMS For the purposes of this Agreement, the terms defined in this section shall have the meanings given them below. Subd. 1. "Assistance" means the providing of fire personnel and equipment, fire investigators, fire inspectors, fire educators, fire instructors, training personal and associated equipment and facilities. Subd. 2. "Emergency" means a sudden and unforeseen situation requiring immediate action. Subd. 3. "Party" means a governmental unit which is a Party to this Agreement. Subd. 4. "Requesting Official" means the person designated by a Party who is responsible for requesting Assistance from other Parties. Subd. 5. "Requesting Party" means a Party which requests Assistance from other Parties. Subd. 6. "Responding Official" means the person designated by a Party who is responsible to determine whether and to what extent that Party should provide Assistance to a Requesting Party. Subd. 7. "Responding Party" means a Party which provides Assistance to a Requesting Party. Subd. 8. "Specialized Activities" means non-emergency Assistance to include but not be limited to: fire investigators, fire inspectors, fire educators, fire instructors, training personal and associated equipment and facilities. Subd. 9. "Extraordinary Services" means emergency Assistance that includes activities beyond the normal scope of fire fighting; such ~s hazardous materials incidents, high level rescue, or dive rescue. III. PARTIES Southwest Mutual Aid Associafion Joint And Cooperafive Agreement For Use Of Fire Personnel And Equipment 1-1 g-95 2 The Parties to this Agreement are those entities which approve this Agreement and execute a separate signature page in accordance with Section VIII. The Parties constitute the membership the Southwest Mutual Aid Association. Other entities may become a Party to this Agreement by complying with the conditions provided in the Association. rules, by applying to and receiving approval of all member Parties, and by executing a separate signature page for this Agreement. Any Party may withdraw from membership at any time upon thirty days written notice to the other members. A party may be removed ftom membership only by a vote of at least three-quarters of all other Parties to the Agreement and only for the following causes: failure to comply with the terms of the agreement as may be modified or a failure to pay dues. Action by any Party which is required or permitted under this Agreement will be evidenced by: • for a municipality, a resolution adopted by the governing body, or • for anon-municipality, a letter executed by an official with sufficient authority to bind that party which recites the basis of that authority. IV. PROCEDURE Subd. 1. Whenever, in the opinion of a Requesting Official, there is a need for Assistance from other ParEies, such Requesting Official may, at his/her discretion, call upon the Responding Official of any other Party to furnish Assistance to and within the boundaries of the Requesting Party. Subject to the limitations set forth herein, it i the intention of the Parties to this Agreement to cooperate in the event of an emergency by making the necessary Assistance available to a Requesting Party without undue delay. Subd. 2. Upon the receipt of a request for Assistance from a Party, the Responding Official may authorize and direct the Fire Department personnel under his/her control to provide Assistance to the Requesting.Party. Whether the Responding Party provides such Assistance to the Requesting Party and, if so, to what extent such Assistance is provided shall be determined solely by the Responding Official (subject to such supervision and direction as may be applicable to him/her within the governmental structure of the Party by which he/she is employed). Failure to provide Assistance will not result in liability to a Party. Subd. 3. When a Responding Party provides Assistance under the terms of this Agreement, it may in turn request Assistance from other Parties as "backup" during the time that it is providing Assistance outside its boundaries. Subd. 4. Whenever a Responding Party has provided Assistance to a Requesting Party, the Responding Official may at any time recall such Assistance or any part thereof if the Responding Official in his/her best judgment deems such recall necessary to provide for the best interests of his/her own community. Such action will not resul+ in liability to any Party. Southwest Mutual Aid Associafton Joinf And Cooperafive Agreement For Use Of Fire Personnel And Equipment 1-19-95 3 Subd. 5. The Requesting Party shall be in command of the emergency scene. The personnel and equipment provided by the Responding Party shall be under the direction and control of the Requesting Party until the Responding Official withdraws Assistance. Subd. fi. A Responding Party shall be responsible for its own personnel, equipment, and for injuries or death to any such personnel or damage to any such equipment, except that unused equipment provided by the Responding Party shall be returned to the Responding Party by the Requesting Party when circumstances permit this to be done. Responding personnel shall be deemed to be performing their regular duties for the Responding Party. Insurance coverage and any financial compensation shall be the responsibility of the Responding Party. Each Party waives the right to sue any other Party for any workers compensation benefits paid to its own employee or volunteer even if the injuries were caused wholly or partially by the negligence of any other Party, its officers, employees, or volunteers. Subd. 7. Specialized activities of anon-emergency nature may be requested and/or- provided by the Parties to this Agreement. Subd. 8. No charge shall be made to a Party for Assistance rendered under this Agreement except that a Party providing Assistance shall be paid for the cost of .~ supplies. A Party providing Assistance may charge for time and materials for Specialized activities and Extraordinary Service as provided for in the association rules. . V. OPERATING COMMITTEE The association shall have an Operating Committee to administer this Agreement. Subd. 1. The Chief of each Party's Fire Department, or designee, shall be the Party's representative to the Association Operating Committee. Subd. 2. It is the responsibility of the Operating Committee to establish rules, policies, and standards and to take other necessary or prudent action to administer this Agreement. Subd. 3. The Operating Committee shall meet periodically, but not less than quarterly to conduct the business of the Association. Subd. 4. The Association is not a separate legal entity. The Operating Committee shall have no authority to own property, enter into contracts, or to receive and expend funds except for routine administrative expenses. VI. RECIPROCAL DEFENSE AND INDEMNIFICATION Except for the United States Veteran's Administration Medical Center ("the V.A.") which is subject to federal taws prohibiting the following provision the Requesting Party agrees to indemnify and defend against any claims brought or actidns filed against the Responding Party or any officers, employees, or volunteers of the Responding Party for injury or death Southwest Mutual Aid Association Joint And Cooperative Agreement For !!se Of Fire Personnel And Equipment 1-19-95 4 to any third person or persons, or damage to the property of third persons, arising out of the performance and provision of Assistance in responding to a request for Assistance by the Requesting Party pursuant to this Agreement. The intent of the indemnification requirement of this section is to impose on each Requesting Party a limited duty to defend and indemnify any Responding Parry for claims arising within the Requesting Party's jurisdiction subject to the liability limits under Chapter 466, Minnesota Statutes. The purpose of creating these reciprocal duties to defend and indemnify is to simpiify the defense of liability claims by eliminating conflicts among defendants, and to permit liability claims against multiple defendants from a single occurrence to be defended by a single attorney. Under no circumstances, however, shall a Party be required to pay, on behalf of itself and other Parties, any amounts in excess of the liability limits established in Chapter 466, Minnesota Statutes, applicable to only one Party. The limits of liability for some or all Parties may not be added together to increase the maximum statutory liability limits for any Party. VII. WAIVER Each party waives all claims against the V.A. and the V.A, waives all claims it may have against any Party, for any compensation for any loss, damage, personal injury, or death occurring in the consequence of the performance of fire protection services for the V.A, or by V.A. personnel. However, this waiver does not preclude a fire organization from filing claims for fire fighting costs and losses pursuant to 15 U.S.C. 2210, beneficiaries from filing claims for the deaths of firefighters and other public safety officers.pursuant to 42 U.S.C. 3796, and individuals other than the Parties and their employees, from filing~claims agair,_ the United States pursuant to 28 U.S.C. 1346(b) and 2671-2680. . VIII. EFFECTIVE DATE This Agreement shall be effective upon execution by three-quarters of the entities listed on the attached Exhibit A which is incorporated by reference_ herein. Each Party shall execute a separate signature page and forward that page to the Association Secretary, along with a resolution or letter as provided in Section III. Upon receipt of all executed signature pages, the Secretary shall send a copy of the fully executed agreement .to each member. If this Agreement is executed by alt of the entities listed on the attached Exhibit A, this Agreement shall- supersede, replace, and void all prior agreements which provide for the existence of the Southwest Mutual Aid Association, and all assets of the Association under those agreements shall be transferred to the Association created pursuant to this Agreement. If the Agreement becomes effective by less than unanimous approval, the Parties to this Agreement shall vote to transfer any assets of the pre-existing Southwest Mutual Aid Association to the Association created under this Agreement and shall thereafter give notice that they are withdrawing from the pre-existing Association. IX. AMENDMENT This Agreement may be amended or terminated upon the affirmative vote of three-quarters of the Parties then existing. , , Soufhwesf Mutual Aid Association Joinf And Cooperative Agreemenf For Use Of Fire Personnel And Equipment 1-f 9-95 Southwest Mutual Aid Association Personnel And Equipment Agreement EXHIBIT A City of Bloomington: ~ City of Minneapolis Bloomington Fire Dept. Minneapolis Fire Dept. 2215 Old Shakopee Rd. 300 S 5th St -Room 230 Bloomington, MN 55431 Minneapolis, MN 55415 City of Chanhassen: City of Minnetonka: Chanhassen Fire Dept. Minnetonka Fire Dept. 7610 Laredo Dr., Box 97 14550 Minnetonka Blvd. Chanhassen, MN 55317 Minnetonka, MN 55345 City of Eden Prairie: City of Plymouth: Eden Prairie Fire Dept. Plymouth Fire Dept. 7801 Mitchell Rd. 3400 Plymouth Blvd. Eden Prairie, MN 55344 Plymouth, MN 55447 City of Edina: City of Richfield: Edina Fire Dept. Richfield Dept. of Pub. Safety 6250 Tracy Ave. 6700 Portland Ave. Edina, MN 55436 Richfield, MN 55423 r''°*~• ^{ ~~^°'..:...: City of St. Louis Park: ~,,,.e~~:„~ Ciro no^+ St. Louis Park Fire Dept. Excelsior Fire District 5005 Minnetonka Blvd. 339 3rd Street St. Louis Park, MN 55416 Excelsior, MN 55331 City of Wayzata: City of Golden Valley: Wayzata Fire Dept. Golden Valley Fire Dept. 600 Rice St. 7800 Golden Valley Rd. Wayzata, MN--5534 Golden Valley, MN 55427 Metropolitan Airport Commission: City of Hopkins: Airport Fire Dept. Hopkins Fire Dept. ~ 6307 34th Ave. S. 1010 1st St. S. Minneapolis, MN 55440 Hopkins, MN 55343 City of Maple Grove:. y Maple Grove Fire Dept. 9101 Fembrook Lane Maple Grove, MN 55311 7-25-2002 AGENDA SECTION: AGENDA ITEM # REPORT # ~J STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 24, 2002 CONSENT REPORT PREPARED BY: REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: b ROBERTHINTGEN, UTILITIES SUPERVISOR NAMIi. TITI.t: MIKE EASTLING, PUBLIC WORKS DIRECTOR REVIEWED BY CITY MANAGER: ITEM TION: Consideration of resolution certifying delinquent sewer and water utility accounts to the County Auditor. I. RECOMMENDED ACTION: By Motion: Adopt the resolution certifying unpaid sewer and water service charges to the County Auditor to be collected with other taxes on said properties. II. BACKGROUND Chapter VII of the Richfield Ordinance Code provides that unpaid water and sewer charges may be certified to the County Auditor to be included in a property owner's annual property tax bill. The Ordinance Code also authorizes $25 certification fee to be charged against each delinquent account. By certifying the delinquent charges to the property taxes for the delinquent properties, the City is assured of ultimately collecting the delinquent charges. In 2001 the City Council certified $139,983.20 of delinquent charges for 272 properties, an average cost of $514.64 per account. ;The 2002 certification currently under consideration totals $218,516.10 for 942 properties, an average of $231.97 0924delinquent per account. Staff expects that, as in years past, many of the now delinquent accounts will be paid before certification. III. BASIS OF RECOMMENDATION A. POLICY • State Statute and Chapter VII of the Richfield Ordinance Code provide that unpaid water and sewer charges may be certified to the County Auditor to be included in a property owner's annual property tax bill. B. CRITICAL ISSUES Property owners owing utility charges will be notified in August and September that failure to pay the amount owed will result in certification to the property owners' taxes. C. FINANCIAL . • Throughout the year, the division bills and collects charges for water, wastewater and storm water from accounts within the City. The delinquent accounts must be certified to the County Auditor in order for the City to collect the charges through the property tax process. A $25 certification is charged to each account assessed to taxes. The assessment is spread over a period of one year at the rate of 8% per annum. D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION(S) • Do not approve the resolution. However, the certification process is the only process the City has to collect these delinquent accounts. V. ATTACHMENTS • Resolution authorizing certification of unpaid sewer and water service charges to the County Auditor to be collected with other taxes on said properties VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None. RESOLUTION NO. RESOLUTION AUTHORIZING CERTIFICATION OF UNPAID SEWER AND WATER SERVICE CHARGES TO THE COUNTY AUDITOR TO BE COLLECTED WITH OTHER TAXES ON SAID PROPERTIES WHEREAS, Ordinance Code 715 establishes rules, rates and charges for water service in the City of Richfield; and WHEREAS, Minnesota Statutes 444.075 provides that all delinquent water service charges not paid may be certified to the County Auditor and shall be collected with other taxes on such property; and WHEREAS, Ordinance Code 705 established rules, rates and charges for sanitary sewer service in the City of Richfield; and WHEREAS, 705.19 thereof provides that all sewer services charges not paid with 15 days after the quarterly due date may be certified to the County Auditor with taxes against such property, and shall be collected with other taxes on such property; and WHEREAS, Ordinance Code 720 established rules, rates and charges for storm water service in the City of Richfield; and WHEREAS, 705.19 thereof provides that all storm water service charges not paid may be certified to the County Auditor with taxes against such properties, and shall be collected with other taxes on such property; and WHEREAS, an assessment roll has been prepared specifying the amount, which shall be certified against each particular property. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota: 1. There is hereby determined to be a total uncollected amount for water, sanitary sewer and storm service of $218,516.10 2. That a $25 cert~cation charge shall be levied against each delinquent account, such charges totaling $23,550.00 3. That the .above-described assessment be spread over a period of one year at the rate of 8% per annum. 4. That such amount be hereby certified to the County Auditor for collection with other taxes on said properties. 5. That a copy of the resolution shall be sent to the Hennepin County Auditor. Adopted by the City Council of the City of Richfield, Minnesota this 24th day of September 2002. Martin J. Kirsch, Mayor ATTEST: .• Nancy Gibbs, City Clerk AGENDA SECTION: AGENDA ITEM # REPORT # STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 24, 2002 Consent 4E 224 REPORT PREPARED BY: REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of the attached resolution levying special assessment for nuisance abatement. I. RECOMMENDED ACTION: By Motion: Adopt the attached resolution levying special assessments for nuisance abatement a ainst listed roe owners. II. BACKGROUND The special assessment for nuisance abatement is for costs incurred by the City in connection with abatement for nuisances on certain properties in the City, which are not properly maintained. The owners of the subject properties are noted by the City to correct the nuisance and have failed to do so within a timely limit. The property owners were notified that if the nuisance is not abated within the proper time limit, the City would take the corrective action necessary and bill the property owner. Finally, the property owner is notified that any unpaid charges of fees may be assessed against the property. CHRIS REGIS, FINANCE MANAGER NAME, TITLE REGIS, FINANCE MANAGER 09242002SA III. BASIS OF RECOMMENDATION ~.. A. POLICY • The nuisance property was not maintained by the owners and the City incurred costs to abate the nuisance. Minnesota State Statutes provide that the City may levy a special one- year assessment for these costs. B. CRITICAL ISSUES • N/A C. FINANCIAL • The proposed special assessment for nuisance abatement is $42.56 with an additional 8% interest penalty. D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION(S~ • Do not approve the attached resolution and have the costs absorbed by the City. V. ATTACI-IlVIENTS • Resolution. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None. ,. RESOLUTION NO. RESOLUTION LEVYING SPECIAL ASSESSMENT FOR NUISANCE ABATEMENT BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows: 1. The following described properties are hereby specially assessed in the following amounts for expense incurred by the City in connection with abatement of a nuisance health hazard and a safety hazard pursuant to provisions of Minnesota Statutes, Section 429.101, to wit: PROPERTY ID ADDITION ADDRESS AMOUNT NUISANCE ABATEMENT: 35-02824-13-0049 49737 7325 14th Avenue So. $42.56 2. The above special assessment is to be spread over one year at the rate of 8% interest per annum. 3. That the City Clerk is hereby authorized and directed to certify a copy of this resolution to the County Auditor of Hennepin County, Minnesota. Passed by the City Council of the City of Richfield, Minnesota this 24th day of~ September, 2002. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk r~ ~~ AGENDA SECTION: AGENDA ITEM # REPORT # STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 24, 2002 Consent 4F 225 REPORT PREPARED BY: AL PAYNE, FACILITIES MANAGER NAME, TITLE REPORT PRESENTER: AL PAYNE, FACILITIES MANAGER NAME. TITLE r DEPARTMENT DIRECTOR REVIEW: ~ / S ATURE ~''_~ ... REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of the purchase and installation of a new evaporative condenser in the amount of $42,034.85 for Rink One of the Richfield Ice Arena. I. RECOMMENDED ACTION: By Motion: Authorize the purchase of a new evaporative condenser in the amount of $42,034.85 for Rink One of the Richfield Ice Arena from Gartner Refrigeration & Mfg. Inc. _ II. BACKGROUND The evaporative condenser on Rink One was struck by lighting on September 6, completely destroying two of the fans and fan shaft. This piece of equipment is essential to the operation of the ice rink refrigeration system. The evaporative condenser converts high pressure discharge gas to a low pressure, otherwise the refrigeration system would not operate. The current evaporative condenser is the original (1971) and has been scheduled for several years in the CIP for replacement, but continues to be moved back due to other needs. 0924arena There is also a condenser pump that supplies water to the evaporative coils if the fans are unable to reduce the discharge pressure. The water operates in the spring _ through fall. There is a potential freezing problem if the water is used in the winter. Therefore, it's necessary to have all fans operating in the winter. Allied Adjusters has looked at the condenser and is gathering information to determine an amount for an insurance claim. To repair only the damaged section of the condenser is estimated at $10-12,000. This may be the amount insurance will cover. Because of the age and condition of the existing evaporator unit, staff recommends replacing the entire unit. III. BASIS OF RECOMMENDATION A. POLICY ^ This expenditure is unforeseen and unbudgeted, but is necessary for the proper functioning of the Ice Arena. ^ Because this item could not be budgeted, the purchase of new equipment will need to be authorized by the-City Council at this time. B. CRITICAL ISSUES • The condenser needs to be repaired before the weather gets too cold to eliminate the problem of having to use water and freezing. • It is reasonable to expect that future repairs and additional expenditures can be reduced if condenser is replaced with a totally new condenser. Rink One potentially could not operate during the upcoming skating season if the repair is not completed and problems occur with the remaining fans/motor. The arena will need to shut the refrigeration system off and cancel ice on Rink One the day the condenser is installed. It will take about eight weeks for delivery. It would be best for installation to occur before the extreme cold weather and prior to the busy high school game schedules in December. Effective and reliable refrigeration equipment is essential in the arena operation. Loss of ice time causes lower revenues and customer dissatisfaction. C. FINANCIAL ^ City reserves are the source of funds for this unbudgeted expenditure. ^ Installing a new evaporative condenser, rather than repairing a 31 year old piece of equipment that needs to be replaced will improve efficiency, reliability and cost less than repairing now and then replacing in the near future. ^ The work needs to be completed in one day; otherwise the ice would melt and result in a potential shutdown of Rink One for more than a week. This would result in a loss of over $9,000 in revenues. IV. ALTERNATIVE RECOMMENDATION(S) ~ ^ To repair only the damaged portion of the evaporative condenser for an estimated $10-12,000. V. ATTACHMENTS • Submitted quote. VI. PRINCII'AL PARTIES EXPECTED AT MEETING • None ~ Q REFRIGERATION dr MFG. INC. 73205-16th Avenue North Plymouth, MN 55441 Richfield Ice Arena 636E 66th St Richfield, MN 55423 Attn: Al Payne Subj: Rink #1 Condenser Dear Al, September 13, 2002 Quotation No.: 0902-8299-0 We propose to furnish and install a replacement condenser for your BAC Model VLC 225. Your existing condenser is no longer manufactured and would require~a different configuration to be applied to the new condenser versions. Gartner Refrigeration proposes to upgrade the condenser to a BAC Model CXV-153. This new condenser has a different fan configuration, with the fan located in the center discharging upward. The new condenser would use your existing condenser sump pump, refrigerant lines, and water and drain lines. We would pump down and reclaim the refrigerant in this condenser system, cut the hot gas condenser drain, and water supply and return lines loose. Once the piping and electrical disconnection is complete we would lift your existing condenser off its plat form. New I beams would be set on your existing steel supports that would match the size of the new condenser. The new condenser would be set in place and the piping would be reconnected and extended to meet the new condenser. Once the leak check and evacuation is complete we would perform a startup, and test and adjust of the new condenser in place. The necessary cylinder rentals for refrigerant, permits, craNE for hoisting, pipe, fittings, and installation labor would be included. Richfield Ice Arena Net Price ...........................................................,.........................$ 39,469.00 Included will be our "Scope of Responsibilities" which will become a part of this proposal. Office/24-hour phone: 763-559-5880.800-328-5547 • Facsimile: T63-559-5925 www. Gartner-Refrig. com i~ °~ { ~;:r: ::S ~:'%'!I "{:i ~ ~' •,' iii :~: 1V~~e'hantc3at Si~rvtt~es. ono. ''~,.! ~;; 9201 EAST 8ifl0Mii~fOTt~ fi~fEWA~I • $tNtE Hi•i • Si.O~tilHtRti3TON. i~i;v342t1.95~84-7140 • fAX: 952~`884.7t43 S,sptember 12, 2002 Sent Via Facslmll0 612-881-9353 - ~~a'. ~.:.; 9~• :: =~~ ti;.~ .:; .:,, t~~~~.; }" ~:_:~~ ., .., ,'•~~-: w! , 4• .."±t r~~ .4_ 1~ ~ rt• .„ ;,.:,,, F.... ~~•i. 'r ~•::. 7 I' r, `'• I ~ ~_'.~ Richi~etd tR:te~bl~re{tt~ 8.38 '• ~M a7i1.IIS71 Richtiefd, hltN 66423 Alin: Ai Payner Re: Repiacsm~ent-Tower#ar'l97t tce Sheet Dear Pti: ARi Mechanics! Services, .Fnc pro~eee~ lst furnish and insteil- Fe}~lace~ttsnt evaporative srondenser• for e- prtca of 545,095:00 (Forty Five Thousand Eighty Five and nol100 Dollars). inciu~! in•this •~uote: A. ReMavatarzddispasatt~~~s~fer 8. Putr~p down at iafrigerani- . ~. Sat raw coctar~n axistirzg stett;.raaAr~cture•1f rss~uir~ D. Repipit~ of new zooiar E. Cemnectr~nrrarndanserto exislMge poarer a~ .c~rnr~i wlri+tg /!=. St~ayr~t-u•p . ~i. Sys i if you have any graesticr~s atxwt this quote, piease cai1. 1 ~SI fT ~ ~ a~~ ~c~cHA i~ai< sE~vscES•, rac. ~~~ - flon 8eryquist ~.~ ,•~ REr^RElf•N•TF1~...q1Flk.lTM•M!•lTlPFa•1FENTlk.l~llMO-•-lfll~OMDiTiOMfN4-~t1LTtfHMO EgNIrMtMT ~~ t . AGENDA SECTION: Consent AGENDA ITEM # 4G REPORT # 226 STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 24, 2002 BETSY CHRISTENSEN, ADMINISRATIVE REPORT PREPARED BY: SUPPORT MANAGER N.tME, TITLE DAN SCOTT, DIRECTOR OF PUBLIC REPORT PRESENTER: SAFETY NayE, 771'LE ' DEPARTMENT DIRECTOR REVIEW: ® ,~ SIGNATURE ~` REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration and approval of a request for a new therapeutic massage license for Anne Thurber, 7515 Upton Avenue I. RECOMMENDED ACTION: By Motion: Approve a request for a new therapeutic massage. License for Anne Thurber, 7515 U ton Avenue. II BACKGROUND On August 5, 2002, Anne Thurber submitted an application for a new therapeutic massage license. She would like to operate the business in her home at 7515 Upton Avenue. Licensing and proof of liability insurance have been submitted. Ms. Thurber has applied for a therapeutic massage business to be based in her home due to the fact that she has a disability that makes her unable to work outside the home. Her disability is agoraphobia, which prevents her from being comfortable in public places. As a result, she is requesting to be allowed to operate a therapeutic massage enterprise out of her residence. The current City ordinance only allows therapeutic massage enterprise businesses in C-2 zoned districts. The Minnesota Disability Law Center is acting as an advocate for Ms. Thurber and has advised staff that cities may not discriminate against a disabled person related to 0924MassageLicense zoning issues. Staff was advised by the City Attorney to request additional information from Ms. Thurber and proof of her disability from the Minnesota Disability Law Center. Staff has received letters from a licensed psychologist who has had Ms. Thurber for a client for several years. Ms. Thurber''s disability has had an extremely adverse affect on her ability to function in a normal and regular manner. She has difficulties functioning independently, which has drastically limited her mobility. She has experienced severe panic attacks, and the fear of their recurrence, quite frequently. Staff has also been contacted by the Department of Economic Security, Rehabilitation Services Branch, who has committed funding to assist Ms. Thurber in the cost of a license for the start-up of her home business. It is their opinion that allowing Ms. Thurber to utilize her home as an office in which to see small numbers of massage clients allows her a chance at self-sufficiency. Ms. Thurber will work with Bloomington health sanitarians to comply with all the requirements for this license and follow their recommendations for health issues. Ms. Thurber has no known criminal history. III. BASIS OF RECOMMENDATION A. POLICY • The applicant has complied with all of the provisions of the City application process, has paid the license fees and has provided proof of liability insurance. • Based upon the information supplied by the applicant and the investigation conducted, there appears to be no reason to deny the license request. B. CRITICAL ISSUES • Due to the C-2 zoning requirements, a therapeutic massage enterprise is not permitted in a residential neighborhood. However, federal law requires cities to make modifications in its zoning and licensing practices for disabled individuals, if the individual otherwise meets all of the essential requirements and if the modifications do not cause undue hardship for the City. C. FINANCIAL • The license fees have been paid by the Minnesota Workforce Center. D. LEGAL City Attorney staff has reviewed all of the documents and'cant unless it the opinion that the license should be granted to the app ' can be shown that it would be extremely burdensome for the City to do so. Bec to Ms~Thurber, the City Attorney agrees that the I cerise accommoda should be granted. IV ALTERNATIVE RECOMMENDATION(S) I The City Council could deny the request for a new therapeutic massage license for Ms. Thurber at 7515 Upton Avenue, however, that would not be the recommendation of the City Attorney as it relates to discrimination against disabled individuals. V ATTACHMENTS I Due to the sensitive and "private" nature of the information submitted by Ms. Thurber as part of the license application, and the fact that the State Data Practices Act does not appear to classify this type of information as anything other than public, the City Attorney has advised staff to request that the State Department of Administration temporarily classify the information as private. Under the Data Practices Act, a classification of data as "private" means that the data is not public, but is accessible to the subject of the data; in this case, Ms. Thurber. Accordingly, the attachments to Ms. Thurber's license application with more detailed information are available for Council review, if necessary. VI PRINCIPAL PARTIES EXPECTED AT MEETING Due to Ms. Thurber's condition, it is unknown at this time, whether she will be in attendance. AGENDA SECTION: Resolutions AGENDA ITEM # 6 REPORT # 227 J ST FF RF'PORT CITY COUNCIL MEETING SEPTEMBER 24, 2002 REPORT PREPARED BY: ~T~ MEDVETSKI, REDEVELOPMENT SPECIALIST N.uv~ REPORT PRESENTER: BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR NAME TITLE DEPARTMENT DIRECTOR REVIEW: ~L~'~ ) REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of a resolution to close out and decertify the Lyndale-Hub-Nicollet Tax Increment Financing District. I. RECOMMENDED ACTION: By Motion: Adopt the attached resolution to decertify the Lyndale- Hub-Nicollet Tax Increment Financing District. III. BACKGROUND ~ On October 15, 1975, the Richfield Housing and Redevelopment Authority (HRA) established the Lyndale-Hub-Nicollet (~:HN) Redevelopment Plan and Commercial Improvement Program. The City Council took similar action in November 1975. This was the City's first redevelopment project established under the direction of the City's newly formed municipal housing and redevelopment authority. It was a pioneering effort in the suburbs of the metropolitan area in 1975. Almost 27 years later, the goals and objectives of this endeavor have come to fruition and the HRA is able to close out and decertify this tax increment financing district. 094LHNdecert.doc At a special meeting on August 5, 2002, the HRA directed staff to begin the decertification process. HRA staff and financial consultants proposed using available revenue to payoff remaining LHN bonds earlier than scheduled, thus enabling the HRA to decertify the district. On September 16, 2002, the HRA adopted a resolution to close out the LHN district. Once decertified by the county, a preliminary estimate under current laws is that approximately $1.4 million of increment could be realized by the various taxing jurisdictions. The City's portion could be approximately $400,000 to $425,000 beginning in 2003. The LHN district has proved to be a successful redevelopment project area of the community, which over time has had more than $60 million of private and $24 million of public investment. The fruits of this undertaking are evident in many ways, especially in the following developments: • K-Mart (1979) • Lyndale Business Center (1979) • Municipal Liquor Store (1979) • Lyndale Garden Center (1980) • Townhomes of Wood Lake (Coach Homes) (1981) • Public Sculpture Plaza (1981) • Lake Shore Drive Condominiums (1982) • Lyndale Hardware (1982) • City Project 705 Public Improvements (1983) • Richfield Shoppes renovation (1984) • Hub Shopping Center improvements (1984) • Woodlake Point Condominiums (1986) • Market Plaza and Village Shores Apartment (1986) • Oreck Plaza renovation (64th &Lyndale) (1986) • Richfield Bank & Trust /Richfield State Agency expansion (1986) • Hub Shopping Center expansion with Rainbow Foods (1991) • Wood Lake Medical Clinic (1994) (Note -the year dates listed above indicate project's completion date). Although the LHN is closing out an era, another has begun; Oaks on Pleasant, The Pines, Woodlake Centre, Gramercy Senior Housing Cooperative, the combined Lyndale Garden Center and Lyndale Hardware and the soon to be City Bella. III. BASIS OF RECOMMENDATION A. POLICY • City policy is to close out a tax increment as soon as debt obligations can be met. This is the second close out; the first, the TIF project at 66th Street and Cedar Avenue. •~ • The City Council is being requested to undertake parallel decertification action as it is the municipal governing body of the HRA. B. CRITICAL ISSUES • Upon completion of all tasks necessary to close out the LHN District, a -~- request will be made to Hennepin County to officially decertify the LHN district. C. FINANCIAL • Outstanding bond payments will be made prior to year 2003. • Under current property tax laws, the preliminary estimate is that the taxing jurisdictions could share approximately $1.4 million dollars in revenue each year beginning in 2003. Richfield could receive approximately $400,000 to $425,000. A. LEGAL • The recommended actions taken to close out the LHN District are being undertaken in conjunction with bond counsel's and fiscal consultant's opinions. IV. ALTERNATIVE RECOMMENDATION(S~ - • Do not close out the LHN District and continue to make bond payment as scheduled. However, this would defeat the goal of closing out TIF districts as soon as possible and be contrary to HRA action taken on September 16, 2002. V. ATTACHMENTS - • Resolution approving the decertification of LHN District. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Sid Inman, Ehlers and Associates, Inc. ,~ - RESOLUTION NO. RESOLUTION APPROVING THE DECERTIFICATION OF THE LYNDALE-HUB-NICOLLET TAX INCREMENT FINANCING DISTRICT OF THE CITY OF RICHFIELD WHEREAS, on November 24, 1975, the Lyndale-Hub-Nicollet Tax Increment Financing District (the "LHN District") was created within the Richfield Redevelopment Project Area (the "Project"); and WHEREAS, as of the date hereof all bonds and obligations to which tax increment from the LHN District have been pledged have been paid in full or defeased and all other costs of the Project have been paid; and WHEREAS, the City Council of the City of Richfield desires by this Resolution to cause the decertification of the LHN District after which all property taxes generated by property within the District will be distributed in the same manner as all other property taxes. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield that the LHN District should be deemed decert~ed as of December 31, 2002, and that the City's staff is authorized and directed to transmit a copy of this resolution to the County Auditor of Hennepin County with a request that the auditor decertify the LHN District as a tax increment district and to remit no tax increment from the LHN District to the City of Richfield after December 31, 2002. Adopted by the City Council of the City of Richfield, Minnesota this 24th day of September, 2002. Martin J. Kirsch, Mayor Attest: Nancy Gibbs, City Clerk a AGENDA SECTION: Other Business AGENDA ITEM # 7 REPORT # 228 J STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 24, 2002 REPORT PREPARED BY: CHERYL KRUMHOLZ, ADMIN. ASST. N,aME Ti7zE REPORT PRESENTER: SAMANTHA ORDUNO, CITY MANAGER NAHfE, TITLE REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of designating the City of Richfield voting and alternate voting delegates for the National Lea ue of Cities annual Con ress of Cities business meetin on December 7, 2002. I. RECOMMENDED ACTION: By Motion: Designate the City of Richfield official voting delegate and alternate voting delegate for the National League of Cities annual Congress of Cities business meeting on December 7, 2002. II. BACKGROUND The National League of Cities (NLC) annual Congress of Cities conference is December 3-7, 2002 in Salt Lake City, UT. The annual business meeting will be held on December 7. Under the bylaws of the NLC, each direct member city, is entitled to cast one to 20 votes, depending upon the city's population, through its designated voting delegate at the annual business meeting. Richfield is eligible to cast one vote. `To be eligible to cast the City's vote, each voting delegate and alternate must be designated by the City. NLC's bylaws expressly prohibit voting bjr proxy. Thus, the designated voting delegate must be present at the annual meeting to cast the City's vote. NLC will send a special edition of the Policy Informer summarizing proposed National Municipal Policy amendments and proposed resolutions. 0924n1c The City Council should determine who will attend the NLC conference and be the designated voting delegate at the business meeting. The delegate must be present at the annual business meeting to cast the City's vote. III. BASIS OF RECOMMENDATION A. POLICY • Richfield is a member of the National League of Cities. • Richfield is eligible to cast one vote at the annual business meeting • A designated voting delegate must be present at the business meeting to cast the City's vote. B. CRITICAL ISSUES • To establish Richfield's credentials and facilitate voting delegate preparation for the Congress of Cities, a voting delegate designation must be submitted to the NLC not later than October 11, 2002. • It is important for the City to vote on NLC policy amendments and proposed resolutions. C. FINANCIAL • N/A D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION(S~ • Do not designate a voting delegate. V. ATTACHIVIENTS • N/A VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A