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101111completeagenda CITY OF RICHFIELD, MINNESOTA TUESDAY, OCTOBER 11, 2011 RICHFIELD MUNICIPAL CENTER 6700 PORTLAND AVENUE • SPECIAL CITY COUNCIL MEETING HEREDIA CONFERENCE ROOM 5:30 P.M. AGENDA Call to order 1. Interview of youth interested in serving on City advisory commissions Notes: Adjournment SPECIAL CITY COUNCIL/HRA/PLANNING COMMISSION WORKSESSION BARTHOLOMEW CONFERENCE ROOM 5:45 P.M. (MAXIMUM 45 MINUTES) AGENDA Call to order Roll call 1. Discussion regarding Lyndale Garden Center design guidelines (Council Memo No. 115/HRA Memo No. 43) Notes: Adjournment SPECIAL CITY COUNCIL WORKSESSION BARTHOLOMEW CONFERENCE ROOM IMMEDIATELY FOLLOWING PREVIOUS SPECIAL WORKSESSION AGENDA Call to order Roll call 1. Discussion regarding Municipal Center conference room rental policy (Council Memo No. 116) Notes: Adjournment REGULAR CITY COUNCIL MEETING COUNCIL CHAMBERS 7:00 P.M. AGENDA INTRODUCTORY PROCEEDINGS Call to order Roll call Open forum (15 minutes maximum) Each speaker is to keep their comment period to three minutes to allow sufficient time for others. Comments are to be an opportunity to address the Council on items not on the agenda. Individuals who wish to address the Council must have registered prior to the meeting. Notes: Pledge of Allegiance Approval of minutes of (1) Special City Council Meeting of September 27, 2011; (2) Special City Council Worksession of September 27, 2011; and (3) Regular City Council Meeting of September 27, 2011 PRESENTATIONS 1. Annual meeting with Friendship City Commission 2. Annual meeting with Transportation Commission COUNCIL DISCUSSION 3. Council discussion • Hats Off to Hometown Hits Notes: AGENDA APPROVAL 4. Council approval of agenda CONSENT CALENDAR 5. Consent Calendar contains several separate items,which are acted upon by the City Council in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further Council action is necessary. However, any Council Member may request that an item be removed from the Consent Calendar and placed on the regular agenda for Council discussion and action. All items listed on the Consent Calendar are recommended for approval. A. Consideration of approval of resolution authorizing Public Safety's acceptance of $5000 grant from Target Corporation S.R. No. 203 B. Consideration of approval of Richfield Municipal Center change order report for aggregate net effect of$29,629 in items included within project budget and $1,661 in non-budgeted items SR. No. 204 Notes: 6. Consideration of items, if any, removed from Consent Calendar Notes: PUBLIC HEARINGS 7. Public hearing regarding resolution adopting assessment for unpaid false alarm user fees against private property Staff Report No. 205 Notes: 8. Public hearing regarding resolution adopting assessment roll for weed elimination from private property and removal or elimination of public health or safety hazards from private property Staff Report No. 206 Notes: PROPOSED ORDINANCE 9. Consideration of accepting purchase agreement or extending counterproposal to purchase agreement and second reading of ordinance providing for sale of certain real property of city to Wellington Management, Inc. Staff Report No. 207 Notes: OTHER BUSINESS 10.Consideration of appointment to fill youth term on City advisory commissions Staff Report No. 208 Notes: CITY MANAGER'S REPORT 11.City Manager's report Notes: 12.Claims and payrolls Open forum (additional 15 minutes if more time needed after first Open Forum and by majority vote of the City Council) Each speaker is to keep their comment period to three minutes to allow sufficient time for others. Comments are to be an opportunity to address the Council on items not on the agenda. Individuals who wish to address the Council must have registered prior to the meeting. Notes: 13.Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9738. richfield: October 2011 Page 1 of 2 City of Richfield Calendar Calendars Net Navigate: 2010 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 October 2011 Monday Tuesday Wednesday Thursday Friday 26 I Sep 27 28 29 30 5:30p Human Services 5:45p Special City Planning Council Council Meeting 7:OOp Planning (commission interviews) Commission in Heredia Conference Room 6:15p Special City Council Worksession 7:OOp City Council Regular Meeting 3 4 5 6 7 7:OOp Special Planning 11:30a Richfield Tourism 7:OOp Transportation 7:OOp Arts Commission Commission Promotion Board @ Commission @ 7000 Nicollet Ave Worksession 6601 Lyndale Ave, Suite 106 6:30p Human Rights Commission 10 11 12 13 14 6:OOp Special Joint City 5:30 PM Special City of Richfield/City of Council Meeting Bloomington/City of (commission interview) Edina Planning Commissions 5:45 PM Special City Worksession in Council/HRA/Planning Municipal Center Commission Bartholomew Room Worksession 7:OOp Planning Commission Study Immediately following- Session Special City Council Worksession 7 PM Regular City Council Meeting 17 18 19 20 2 6:OOp Advisory Board of 7:OOp Community Health Services Commission @ 7:OOp Housing and 7000 Nicollet Ave Redevelopment Authority(HRA) 24 26 28 5:30p Human Services 6 PM Special City SATURDAY, OCT. 28 Planning Council Council Worksession 9:30 a.m.-10:30 a.m. 7:OOp Planning Mayor's Hour @ Commission 7 PM Regular City Farmers'Market Council Meeting 31 1 I Nov 2 3 4 11:30a Richfield Tourism 7:OOp Transportation 7:OOp Arts Commission Promotion Board @ Commission @ 7000 Nicollet Ave 6601 Lyndale Ave, Suite 106 6:30p Human Rights Commission Display: http://www.my.calendars.net/richfield 10/6/2011 CITY COUNCIL MEETING MINUTES NE■Al Richfield, Minnesota RICHFIELD Special City Council Meeting Advisory Board/Commission Applicant Interview September 27, 2011 CALL TO ORDER The meeting was called to order by Mayor Goettel at 5:50 p.m. ROLL CALL MEMBERS PRESENT: Debbie Goettel, Mayor; Sue Sandahl; Fred Wroge; Pat Elliott; and Tom Fitzhenry. INTERVIEW OF APPLICANTS The City Council conducted an interview of the following applicants for appointment to City Advisory Boards and Commissions: Emily Blom Sana Juma ADJOURNMENT The meeting was adjourned by unanimous consent at 6:05 p.m. Date Approved: October 11, 2011 Debbie Goettel Mayor Cheryl Krumholz Steven L. Devich Recording Secretary City Manager CITY COUNCIL MINUTES RICHFIELD Richfield, Minnesota Special City Council Worksession September 27, 2011 CALL TO ORDER The meeting was called to order by Mayor Goettel at 6:15 p.m. ROLL CALL Council Members Debbie Goettel, Mayor; Sue Sandahl; Fred Wroge; Pat Elliott; and Tom Present: Fitzhenry. Staff Present: Steven L. Devich, City Manager; Pam Dmytrenko, Assistant City Manager; Dave Conrads, Building Maintenance Supervisor; and Cheryl Krumholz, Recording Secretary. Item # I DISCUSSION REGARDING ORFIELD LABORATORIES INC. RICHFIELD MUNICIPAL CENTER PERFORMANCE COMMISSIONING Mike Cox and Mike Klass, Wold Architects and Engineers, discussed the Municipal Center construction process, including building goals, challenges, balanced budget and performance standards. They stated they consider the construction a complete success. Mr. Cox and Mr. Klass reviewed and provided a status update on the Orfield Labs building performance standards commissioning, including the report's concerns regarding the Council Chambers light fixtures, sound masking and the HVAC system. Steve Orfield, Orfield Laboratories, Inc., stated when the building performance standards commissioning was conducted, he was not aware the building was not fully operational and suggested another commissioning be done. Assistant City Manager Dmytrenko responded that Mr. Orfield was aware and that she had communications to support his knowing about the building not being fully operational. She added the budget included only one commissioning. Mr. Orfield stated that he understood the commissioning should be done before occupancy because there is no opportunity when it is occupied other than at night. Council Member Wroge stated he believed the commissioning should be done when the building is occupied. Mayor Goettel stated she wanted the building to be tested accurately. Special Worksession Minutes -2- September 27, 2011 Council Member Elliott questioned who was responsible to pay for another commissioning. He added he believed Orfield Labs did commissioning before the building was ready therefore neither the City nor Wold should pay for it to be done again. Mr. Klass explained the rationale for installing 3 foot light shelves instead of 6 foot light shelves. Mr. Orfield stated the building is not a failure but some things are incorrect and need to be fixed to protect the City Council's interest and investment. Mayor Goettel asked Mr. Orfield if a report from Wold addressing the requested corrections Y p g would be acceptable. Mr. Orfield said yes, with measurements that are validated. The City Council directed the City Manager to negotiate with Wold Architects and Orfield Labs to remedy the building performance standards commissioning issues. ADJOURNMENT The meeting was adjourned by unanimous consent at 6:54 p.m. Date Approved: October 11, 2011 Debbie Goettel Mayor Cheryl Krumholz Steven L. Devich Recording Secretary City Manager CITY COUNCIL MEETING MINUTES RICHFIELD Richfield, Minnesota Regular Meeting September 27, 2011 CALL TO ORDER The meeting was called to order by Mayor Goettel at 7:00 p.m. ROLL CALL Members Present: Debbie Goettel, Mayor; Sue Sandahl; Fred Wroge; Pat Elliott; and Tom Fitzhenry. Staff Present: Steven L. Devich, City Manager; Pam Dmytrenko, Assistant City Manager; Mike Eastling, Public Works Director; John Stark, Community Development Director; Jim Topitzhofer, Recreation Services Director; Dave Conrads, Building Maintenance Supervisor; Robert Hintgen, Utility Superintendent; Corrine Heine, City Attorney; and Cheryl Krumholz, Recording Secretary. OPEN FORUM None. PRESENTATION OF COLORS AND PLEDGE OF ALLEGIANCE Mayor Goettel led the audience in the Pledge of Allegiance. APPROVAL OF MINUTES M/Sandahl, S/Wroge to approve the minutes of(1) Special City Council Meeting of September 12, 2011; (2) Special City Council/Planning Commission Worksession of September 13, 2011; and (3) Regular City Council Meeting of September 13, 2011. Motion carried 5-0. Council Meeting Minutes -2- September 27,2011 Item #1 PRESENTATION FROM RICHFIELD SCHOOL DISTRICT SUPERINTENDENT ROBERT SLOTTERBACK Superintendent Slotterback discussed the school referendum on the November 8, 2011 ballot. The following new administrators were introduced: Mike Rice, Richfield Career Education Jodi Markworth, Sheridan Hills Elementary School Joshua Fuchs, Richfield High School Marta Shahsavand, Richfield Dual Language School Item #2 COUNCIL DISCUSSION • HATS OFF TO HOMETOWN HITS Council Member Elliott announced the Cultural Proficiency Workshop on October 6, 2011 at Hope Presbyterian Church. Council Member Sandahl announced Richfield School Board candidates forum sponsored by the League of Women Voters at the Richfield Municipal Center on October 1, 2011. Council Member Fitzhenry acknowledged the success of the recent Penn Fest event. Council Member Fitzhenry provided a Noise Oversight Committee update. Mayor Goettel announced the launch of the do.town campaign sponsored by Blue Cross Blue Shield with Richfield, Bloomington and Edina. Assistant City Manager Dmytrenko provided an update on the Municipal Center parking lot construction. City Manager Devich suggested the City Council consider a "soft" opening for the public of the new Municipal Center to conduct tours on a Saturday morning in early November when the parking lot is finished. Then, in the spring, when all the work is complete, a formal dedication grand opening could be held. The City Council agreed with having the two openings. Item #3 COUNCIL APPROVAL OF AGENDA M/Wroge, S/Sandahl to approve the agenda. Motion carried 5-0. Item #4 CONSENT CALENDAR Council Meeting Minutes -3- September 27,2011 A. Consideration of approval of resolution certifying delinquent water, sanitary sewer and storm water utility accounts to County Auditor S.R. No. 191 RESOLUTION NO. 10562 RESOLUTION AUTHORIZING CERTIFICATION OF UNPAID WATER, SANTITARY SEWER AND STORM WATER SERVICE CHARGES TO THE COUNTY AUDITOR TO BE COLLECTED WITH OTHER TAXES ON SAID PROPERTIES This resolution appears as Resolution No. 10562. B. Consideration of approval of 2012 agreement with Hennepin County and City of Richfield/Public Safety Department/Police for police cadet funds S.R. No. 192 C. Consideration of approval of bid minutes/tabulation and award of contract to Rice Lake Construction Group for rehabilitation of water plant clarifiers/baffles and chain room piping/pumps in amount of$745,550 S.R. No. 193 D. Consideration of approval of temporary wine and temporary on-sale 3.2 percent malt liquor licenses for Church of St. Richard for November Fest on November 12 and 13, 2011 S.R. No. 194 E. Consideration of approval of temporary food and temporary on-sale liquor licenses for Church of St. Peter's Renaissance in Richfield on October 14 through 16, 2011 S.R. No. 195 M/Goettel, S/Sandahl to approve the Consent Calendar. Motion carried 5-0. Item #5 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT CALENDAR None. Item #6 PUBLIC HEARING REGARDING RESOLUTION AUTHORIZING VACATION OF UTILITY EASEMENT AT 6401 LYNDALE AVENUE (STAFF REPORT NO. 196) Mayor Goettel presented Staff Report No. 196. M/Sandahl, S/Fitzhenry to close the public hearing. Motion carried 5-0. M/Goettel, S/Sandahl that the following resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 10563 RESOLUTION AUTHORIZING THE VACATION OF A PUBLIC EASEMENT AT 6401 LYNDALE AVENUE Motion carried 5-0. This resolution appears as Resolution No. 10563. Council Meeting Minutes -4- September 27,2011 Item #7 PUBLIC HEARING REGARDING RESOLUTION GRANTING FINAL APPROVAL OF PLAT FOR 6401 LYNDALE AVENUE, 515 64TH STREET WEST AND 521 64TH STREET WEST (STAFF REPORT NO. 197) Mayor Goettel presented Staff Report No. 197. M/Wroge, S/Fitzhenry to close the public hearing. Motion carried 5-0. M/Goettel, S/Wroge that the following resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 10564 RESOLUTION GRANTING FINAL APPROVAL OF A PLAT FOR 6401 LYNDALE AVENUE, 515 64TH STREET WEST AND 521 64TH STREET WEST Motion carried 5-0. This resolution appears as Resolution No. 10564. Item #8 CONSIDERATION OF SECOND READING OF ORDINANCE AMENDING SUBSECTION 537.05, SUBDIVISION 1 OF RICHFIELD CITY CODE RELATED TO CONDITIONAL USES IN MIXED USE DISTRICTS (STAFF REPORT NO. 198) Council Member Wroge presented Staff Report No. 198. M/Wroge, S/Sandahl that this constitute second reading of Bill No. 2011-21 amending Subsection 537.05, Subdivision 1 of Richfield City Code related to conditional uses in mixed use districts. Motion carried 5-0. Item #9 CONSIDERATION OF SECOND READING OF ORDINANCE REZONING PROPERTIES LOCATED AT 6401 LYNDALE AVENUE, 515 64TH STREET WEST AND 521 64TH STREET WEST FROM C-2 (GENERAL COMMERCIAL) AND R (SINGLE-FAMILY RESIDENTIAL) TO PMR (PLANNED MULTI-FAMILY RESIDENTIAL) AND RESOLUTION AUTHORIZING SUMMARY PUBLICATION OF ORDINANCE (STAFF REPORT NO. 199) Council Member Elliott presented Staff Report No. 199. M/Elliott, S/Wroge that this constitute second reading of Bill No. 2011-22 rezoning properties located at 6401 Lyndale Avenue, 515 64th Street West and 521 64th Street West from C-2 (General Commercial) and R (Single-Family Residential) to PMR (Planned Multi-Family Residential) and resolution authorizing summary publication of ordinance: RESOLUTION NO. 10565 Council Meeting Minutes -5- September 27,2011 RESOLUTION APPROVING SUMMARY PUBLICATION OF AN ORDINANCE AMENDING APPENDIX 1 OF THE CODE OF THE CITY OF RICHFIELD Motion carried 4-0. This resolution appears as Resolution No. 10565. Item #10 CONSIDERATION OF AUTHORIZING STAFF TO SOLICIT BIDS FOR OPTION B FOR REMAINING WORK OF HONORING ALL VETERANS MEMORIAL (STAFF REPORT NO. 200) Council Member Fitzhenry presented Staff Report No. 200. Recreation Services Director Topitzhofer reviewed the remaining work on the Honoring All Veterans Memorial monument and the three landscape options. Funding would be an internal loan from the City and reimbursed by the Honoring All Veterans Memorial Board through dedicated proceeds of engraving sales. Recreation Services Director Topitzhofer said the Community Services Commission recommended Option 3 (full landscape plan) because the memorial is viewed as a regional attraction. Council Member Sandahl expressed support for Option 3 because the memorial is a gathering venue with landscaping and seating amenities. Council Member Elliott voiced concerns that Option 3 may have too many components which detract from the statue and tablets as centerpieces. He stated he believed memorials should be simplistic to maintain the goal of honoring of veterans. Council Member Wroge agreed with Council Member Elliott and supported the memorial portion and sidewalks, but not shrubbery. He added removal of the berm would increase visual exposure for the public. Mayor Goettel agreed with Council Member Elliott and Council Member Wroge in support of Option B with seating. Recreation Services Director Topitzhofer stated the Richfield Tourism Promotion Board would be contacted to assist with a donation. The City Council consensus was to select Option B (additional trail and landscaping on east side). M/Fitzhenry, S/Sandahl to authorize staff to solicit bids for Option B for remaining work of Honoring All Veterans Memorial. Motion carried 5-0. Item #11 CONSIDERATION OF APPOINTMENTS TO FILL YOUTH TERMS ON CITY ADVISORY COMMISSIONS (STAFF REPORT NO. 201) M/Sandahl, S/Goettel to make the following appointments: ADVISORY BOARD OF HEALTH Council Meeting Minutes -6- September 27,2011 Name Term Expires Emily Blom August 31, 2012 HUMAN RIGHTS COMMISSION Name Term Expires Sana Juma August 31, 2012 Motion carried 5-0. Item #12 CONSIDERATION OF: • CLOSE MEETING TO CONSIDER PURCHASE AGREEMENT FROM WELLINGTON MANAGEMENT, INC. FOR PURCHASE OF LOT 3, BLOCK 1, HEYMAN ADDITION; • ACCEPT OR EXTEND COUNTER PROPOSAL TO PURCHASE AGREEMENT; • FIRST READING OF ORDINANCE PROVIDING FOR SALE OF CERTAIN REAL PROPERTY OF CITY AND SCHEDULING SECOND READING FOR OCTOBER 11, 2011 (STAFF REPORT NO. 202) Mayor Goettel presented Staff Report No. 202. Community Development Director Stark explained that if Wellington does not purchase Lot 3, several variances will be required for their project. M/Wroge, S/Sandahl to go into closed executive session in the Bartholomew Conference Room. Motion carried 5-0. The City Council recessed the open meeting at 8:28 p.m. to go into closed executive session in the Bartholomew Room. CLOSED EXECUTIVE SESSION The Closed Executive Session was called to order by Mayor Goettel in the Bartholomew Conference Room at 8:31 p.m. Members Present: Debbie Goettel, Mayor; Fred Wroge; Tom Fitzhenry; Sue Sandahl and Pat Elliott. Staff Present: Steven L. Devich, City Manager: John Stark, Community Development Director; Corrine Heine, City Attorney; and Cheryl Krumholz, Recording Secretary. The Closed Executive Session was convened pursuant to M.S. 13D.05 The Close Executive Session was adjourned by unanimous consent at 8:50 p.m. in the Bartholomew Conference Room. Council Meeting Minutes -7- September 27,2011 The Open Meeting was called to order by Mayor Goettel at 8:52 p.m. in the Council Chambers. M/Sandahl, S/Wroge to extend a counterproposal to the purchase agreement for Lot 3 of $1,000 plus document preparation and closing costs, dedicate back to the City right-of-way 12 feet behind the existing curb line in Lots 2 and 3, and the purchase agreement is subject to attorney review. M/Goettel, S/Wroge to amend the motion to include approve first reading of ordinance providing for sale of certain real property of City and scheduling second reading for October 11, 2011. Motion to approve amendment carried 5-0. Motion carried 5-0. Item #13 CITY MANAGER'S REPORT None. Item #14 CLAIMS AND PAYROLLS M/Sandahl, S/Wroge that the following claims and payrolls be approved: U.S. Bank 9/27/2011 A/P Checks: 206871-207284 $ 1,496,120.41 Payroll: 78256-78595 $ 519,162.62 TOTAL $ 2,015,283.03 Motion carried 5-0. OPEN FORUM None. ADJOURNMENT The City Council meeting was adjourned by unanimous consent at 8:54 p.m. Date Approved: October 11, 2011 Debbie Goettel Mayor Cheryl Krumholz Steven L. Devich Recording Secretary City Manager AGENDA SECTION: CONSENT AGENDA ITEM# 5A REPORT# 203 =AIM STAFF REPORT RICHFIELD CITY COUNCIL MEETING OCTOBER 11, 2011 REPORT PREPARED BY: AMY DUSEK, POLICE COMMUNITY LIAISON NAME,TITLE DEPARTMENT DIRECTOR REVIEW: AM MI ri /L. it w REVIEWED BY CITY SIG R MANAGER: .7/ f ITEM FOR COUNCIL CONSIDERATION: Council approval of resolution authorizing the Public Safety Department's acceptance of a $5000 grant from the Target Corporation. I. RECOMMENDED ACTION: By Motion: Approve the attached authorizing the Public Safety Department's acceptance of a $5000 grant from the Target Corporation. II. BACKGROUND The Public Safety Department was invited by Target to apply for their 2011 Community Leadership Grant due to "outstanding work in the community." Since 1946, Target has given 5% of their income to the communities in which they do business. Notification was received that the City of Richfield/Department of Public Safety was approved to receive $5000 from the Target Corporation. III. BASIS OF RECOMMENDATION A. POLICY • Public Safety does not accept financial support unless it is designated for a specific program that will affect the department as a whole. 101111 Resolution Accepting Grant from Target Corporation • The grant money will be used by Public Safety towards two programs: Shop with A Cop and Emergency Preparedness. • Minnesota Statute 465.03 requires every acceptance of a grant or devise of real or personal property on terms prescribed by the donor be made by resolution of more than two-thirds majority of the City Council. • The Administrative Services Department issued a memo on November 9, 2004 requiring that all grants and restricted donations to departments be received by resolution and by more than two-thirds majority of the City Council in accordance with Minnesota Statute 465.03. B. CRITICAL TIMING ISSUES • The grant money will be used to purchase Target gift cards and supplies for the Shop with A Cop event. • Grant money will also be used towards the Emergency Preparedness Awareness program this fall. Funds will purchase equipment for fall training sessions for the community. C. FINANCIAL • The amount that Richfield Public Safety will receive is $5,000. D. LEGAL • N/A E. ENVIRONMENTAL CONSIDERATIONS • N/A IV. ALTERNATIVE RECOMMENDATIONS) • Council could disapprove of the acceptance of grant monies and the funds would have to be returned to the Target Corporation. V. ATTACHMENTS • Resolution. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None RESOLUTION NO. RESOLUTION AUTHORIZING THE DEPARTMENT OF PUBLIC SAFETY/POLICE TO ACCEPT THE COMMUNITY LEADERSHIP GRANT OF $5000 FROM TARGET CORPORATION TO BE USED FOR THE POLICE "SHOP WITH A COP" EVENT AND FOR THE EMERGENCY PREPAREDNESS PROGRAM WHEREAS, Richfield Public Safety Department/Police was invited to apply for a Target Grant and has been awarded $5,000 to be used as approved by the grant agreement which has designated the funds to be used for community engagement programs; and, WHEREAS, the Richfield Police has designated the $5,000 to be used to fund the Department's "Shop with a Cop" program and the Emergency Preparedness Response program; and, NOW, THEREFORE, BE IT RESOLVED that the City of Richfield, Public Safety Department will accept funds designated for police programs in accordance to and as listed above. Adopted by the City Council of the City of Richfield, Minnesota this 11th day of October 2011. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk AGENDA SECTION: CONSENT AGENDA ITEM# 5B REPORT# 204 STAFF REPORT RICHFIELD CITY COUNCIL MEETING OCTOBER 11, 2011 REPORT PREPARED BY: PAM DMYTRENKO, A'PA T CITY MANAGER NAME,TITL REVIEWED BY CITY / MAN AGER: r / Ea 1 /fI te .� ITEM FOR COUNCIL CONSIDERATION: Accept the change order report for the Richfield Municipal Project for an aggregate net effect of$29,629 in items included in the project budget and $1,661 in non-budgeted items. I. RECOMMENDED ACTION: By Motion: Accept the Richfield Municipal Center change order report for an aggregate net effect of $29,629 in items included within the project budget and $1,661 in non-budgeted items. II. BACKGROUND Resolution No. 10309 provides the City Manager the authority to approve change orders for all contracts awarded by the City Council for the construction of the new Richfield Municipal Center subject to the following limitations: • Up to an aggregate of$25,000 for non-budgeted items • Up to an aggregate of$100,000 for items within the project budget Following the approval of such change orders, the City Manager must report this information to the City Council. Attached is the list of the approved project change orders since the September 13, 2011 City Council meeting. The most significant change order items on this list are as follows: Miscellaneous electrical work authorizations ($12,197) This change order includes the in-floor lighting added in the Council Chambers, the installation of some manual switches in the Fire apparatus bay and some changes required by Logis and our IT staff. 1011change orders Additional excavation work ($10,158) This change order reflects the additional excavation work needed to access the old building's foundation which had asbestos in the water proofing. It also covers additional excavation work to remove the old Fire apparatus bay foundation which was discovered to be a poured wall requiring more digging. The non-budgeted item of$1,661 is for the addition of TV monitor receptacles in the Police command staff offices. This expense is being paid for from separate Public Safety funds. Total net project change orders to-date is $402,727. III. BASIS OF RECOMMENDATION A. POLICY • In order to maintain the construction schedule of the Richfield Municipal Center project and respond to change order requests in a timely manner, the City Council has authorized (Resolution No. 10309) the City Manager to approve change orders up to an aggregate value of$100,000 for budgeted items and up to an aggregate value of$25,000 for non-budgeted items. B. CRITICAL TIMING ISSUES • The City Manager must report approved change orders for the Richfield Municipal Center to the City Council at the next Council meeting. • These change orders have already been approved and, in most cases, implemented. C. FINANCIAL • The change orders before the Council for review on October 11, 2011 represent a net effect of$29,629 for budgeted items and $1,661 in non-budgeted items. • Total net project change orders to-date is $402,727. D. LEGAL • NA E. ENVIRONMENTAL CONSIDERATIONS • NA IV. ALTERNATIVE RECOMMENDATION(S) • None V. ATTACHMENTS • Richfield Municipal Center Change Order Log VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None �� - I - I \ § # 9 \ 2 \ L 0 a) $ / \ / $ a- o 0 Cl)§ -0 k \ / / / 1 / - o_ > G c O \ $ Z a k / C a k $ > 0 s < 55 — \ RS CD G \ $ R o ¥ w a a w G $ a § So q 22 7 « CNI N. CNi ,- a 0) w • g k a) w g > � I E, E w >0 o k /� 0 2 / t - _2 0 2 2 2 k C m \ - 3 g $ § i \ § 3 7 O sm f R L Q f k J5 � « « 5 £ \ � = o m� \� / \ b CO O j /� : /4m o« o �/ 7 � f $ S © 2 Rt a » � E« CO � . § � 22 = : - �$ - (13 las 0 W §2 mR / kkR c co 0 - � \ �\ \ o 1-1 » c U $ ()V ea0 . Q § % awLL w \77m . CI) re f q . / N. . . a. reF2 to i \ 2 \ � Q Q Q $ § 2 2 AGENDA SECTION: PUBLIC HEARINGS AGENDA ITEM# 7 REPORT# 205 maiAl STAFF REPORT RICHFIELD CITY COUNCIL MEETING OCTOBER 11, 2011 REPORT PREPARED BY: CHRIS REGIS, FINANCE MANAGER NAME,TITLE DEPARTMENT DIRECTOR 15r k REVIEW: S_, REVIEWED BY CITY • M MANAGER: ITEM FOR COUNCIL CONSIDERATION: Public hearing regarding the special assessment roll for unpaid false alarm user fees against private property. I. RECOMMENDED ACTION: Conduct and close the public hearing and by motion: Approve the attached resolution adopting the assessment for unpaid false alarm user fees against private property. II. BACKGROUND • Alarm users fees must be paid to the City within 30 days from the date of written notice by the City to the alarm user. Fees not paid within the time specified will be subject to a 10% penalty charge. • The special assessment for unpaid false alarm user fees from private properties is to recover costs incurred by the City in connection with the response by public safety to an alarm call on certain properties in the City that turns out to be false. Properties are allowed two false alarm calls before any billing will take place. III. BASIS OF RECOMMENDATION A. POLICY • Richfield City Code section 915.07 Subd. 3 and chapter 8.02 of the City Charter allows the City to specially assess delinquent false alarm user fees against the respective properties. • Minnesota State Statutes provide that the City may levy a special one- year assessment for these costs. 1011 False Alarm Fee Public Hearing • Notice of the certification was published in the Sun Current on September 22, 2011. B. CRITICAL TIMING ISSUES • N/A C. FINANCIAL • A 10% penalty charge is applied to all properties which have not paid within the time specified. • The proposed special assessment for unpaid false alarm user fees from private property is $770.00 with an additional 6% interest charge on the assessment. • The affected property owner may prepay the original principal amount without interest within 30 days from the date the Council adopts the assessment. If the original principal amount is not paid, the assessment will be charged 6% interest. D. LEGAL • No legal issues are apparent at this time. The City Attorney will be in attendance at the Council meeting should a legal question arise. E. ENVIRONMENTAL CONSIDERATIONS • N/A IV. ALTERNATIVE RECOMMENDATION(S) • Do not approve the attached resolutions and have the costs absorbed by the City. V. ATTACHMENTS • Resolution. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None. RESOLUTION NO. RESOLUTION ADOPTING ASSESSMENT FOR UNPAID FALSE ALARM FEES FROM PRIVATE PROPERTY. WHEREAS, pursuant to proper notice duly given as required by law, the City Council has met and passed upon all objections to the proposed assessment for unpaid false alarm fees from private property in the City of Richfield: Unpaid False Property Address Property ID Number Alarm Fee 1700 West 78th Street 33-028-24-34-0012 220.00 2120 W 63rd Street 28-028-24-22-0002 110.00 6915 South 10th Ave S 26-028-24-34-0047 110.00 7005 Columbus Ave S 35-028-24-22-0086 110.00 7034 S Cedar Ave 35-028-24-11-0010 110.00 7644 Lyndale Ave S 33-028-24-44-0115 110.00 Total $770.00 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota: 1. Such proposed assessment roll, in the amount of$770.00, is hereby accepted and shall constitute the special assessment against the lands named herein, and each tract of land therein included is hereby found to be benefited by the proposed current services in the amount of the assessment levied against it. 2. Such assessment shall be payable in no more than one annual installment and shall bear interest at the rate of six (6%) percent from the date of adoption of this assessment resolution. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole assessment on such property to the City's Assessing Division, and they may at any time thereafter, pay to the City's Assessing Division the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 12 or interest will be charged through December 31 of the next succeeding year. 4. The City Clerk shall forthwith transmit a certified duplicate of this assessment roll to the County Auditor to be extended on the property tax lists of the County and such assessments shall be collected and paid over in the same manner as other municipal taxes. Adopted by the City Council of the City of Richfield this 11th day of October, 2011. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk AGENDA SECTION: PUBLIC HEARINGS AGENDA ITEM# 8 REPORT# 206 STAFF REPORT RICHFIELD CITY COUNCIL MEETING OCTOBER 11, 2011 REPORT PREPARED BY: CHRIS REGIS, FINANCE MANAGER NAME,TITLE DEPARTMENT DIRECTOR REVIEW: ' �, r, SIGNATURE / REVIEWED BY CITY 5re MANAGER: AN—4111111111 I / ITEM FOR COUNCIL CONSIDERATION: Public hearing regarding the special assessment roll for weed elimination from private property and removal or elimination of public health or safety hazards from private property. I. RECOMMENDED ACTION: Conduct and close the public hearing and by motion: Approve the attached resolution adopting the assessment for weed elimination from private property and removal or elimination of public health or safety hazards from private property. II. BACKGROUND • The special assessment for elimination of public health or safety hazards from private properties is for costs incurred by the City in connection with abatement of these hazards on certain properties in the City, which are not properly maintained. • The owners of the subject properties are notified by the City to correct the public health or safety hazards and have failed to do so within the proper timeframe. • The property owners were notified that if the public health or safety hazards were not abated within the proper time limit, the City would take the corrective action necessary and bill the property owner. • Finally, each year the City utilizes City Public Works staff to cut weeds on certain properties in the City not maintained by the owners. If the owner fails to cut the weeds in a timely manner after notification by the City, the City undertakes the weed destruction and bills the property owner for the service. • In all cases, property owners will be notified that any unpaid charges of fees may be assessed against the property. 1011 Nuisance Sp Asmt Public Hearing III. BASIS OF RECOMMENDATION A. POLICY • The nuisance properties were 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. • Notice of the certification was published in the Sun Current on September 22, 2011. B. CRITICAL TIMING ISSUES • N/A C. FINANCIAL • The proposed special assessment for the elimination of public health or safety hazards from private property is $9,040.24 with an additional 6% interest penalty. • The proposed special assessment for weed elimination from private property is $10,550.00 with an additional 6% interest penalty. • Costs incurred for city staff time in the clean up of the properties or to remove the weeds are included in the special assessment amount. • A $50.00 administrative fee is charged to all properties. • The affected property owner may prepay the original principal amount without interest within 30 days from the date the Council adopts the assessment. If the original principal amount is not paid, the assessment will be charged 6% interest. D. LEGAL • No legal issues are apparent at this time. The City Attorney will be in attendance at the Council meeting should a legal question arise. E. ENVIRONMENTAL CONSIDERATIONS • N/A IV. ALTERNATIVE RECOMMENDATION(S) • Do not approve the attached resolutions and have the costs absorbed by the City. V. ATTACHMENTS • Resolution. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None. RESOLUTION NO. RESOLUTION ADOPTING ASSESSMENT FOR WEED ELIMINATION FROM PRIVATE PROPERTY AND REMOVAL OR ELIMINATION OF PUBLIC HEALTH OR SAFETY HAZARDS FROM PRIVATE PROPERTY. WHEREAS, pursuant to proper notice duly given as required by law, the City Council has met and passed upon all objections to the proposed assessment for current services related to weed elimination from private property and removal or elimination of public health or safety hazards from private property in the City of Richfield: Public Health or Weed Safety Property Address Property ID Number Elimination Hazards 10 67th Street E 27-028-24-42-0104 230.00 - 6220 Stevens Ave S 27-028-24-12-0045 170.00 - 6244 Oliver Ave S 28-028-24-22-0005 - 683.00 6315 16th Ave S 26-028-24-11-0034 170.00 290.00 6332 1st Ave S 27-028-24-12-0025 170.00 - 6400 Washburn Ave S 29-028-24-13-0012 170.00 - 6405 Vincent Ave S 29-028-24-13-0049 400.00 - 6412 Portland Ave 27-028-24-14-0002 230.00 - 6530 14th Ave S 26-028-24-13-0137 170.00 - 6535 Newton Ave S 28-028-24-23-0109 340.00 140.00 6617 Sheridan Ave S 29-028-24-41-0047 320.00 - 6701 4th Ave S 27-028-24-41-0090 170.00 - 6721 Bloomington Ave S 26-028-24-41-0049 170.00 - 6727 Chicago Ave S 26-028-24-31-0069 170.00 - 6732 Chicago Ave S 26-028-24-32-0098 510.00 - 6809 3rd Ave S 27-028-24-44-0082 230.00 - 6809 Portland Ave S 26-028-24-33-0130 170.00 - 6821 Cedar Ave S 25-028-24-33-0059 - 470.00 6901 Vincent Ave S 29-028-24-43-0165 230.00 - 6907 Knox Ave S 28-028-24-34-0081 400.00 - 6915 Columbus Ave S 26-028-24-33-0040 170.00 - 6920 10th Ave S 26-028-24-34-0100 170.00 - 7012 Portland Ave S 34-028-24-11-0072 170.00 - 7021 Upton Ave S 32-028-24-12-0005 510.00 - 7144 4th Ave S 34-028-24-11-0044 510.00 200.00 7200 Nicollet Ave S 34-028-24-24-0001 510.00 - 7211 Lyndale Ave S 34-028-24-23-0105 170.00 - 7301 Grand Ave S 34-028-24-23-0149 170.00 - 7314 1st Ave S 34-028-24-13-0011 170.00 - 7334 Cedar Ave S 35-028-24-14-0116 400.00 - 7400 3rd Ave S 34-028-24-42-0001 170.00 - 7427 Pillsbury Ave S 34-02824-31-0044 170.00 - 7433 Xerxes Ave S 32-028-24-42-0075 340.00 210.00 7544 2nd Ave S 34-028-24-42-0104 340.00 1,110.24 7611 16th Ave S 35-028-24-44-0013 150.00 100.00 7615 11th Ave S 35-028-24-34-0020 340.00 4,875.00 7626 12th Ave S 35-028-24-34-0011 170.00 600.00 7632 Oakland Ave S 35-028-24-33-0042 1,090.00 - 7638 11th Ave S 35-028-24-34-0029 - 362.00 7708 Upton Ave S 32-028-24-43-0090 410.00 - Total $10,550.00 $9,040.24 eR NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota: 1. Such proposed assessment roll, in the amount of$19,590.24, is hereby accepted and shall constitute the special assessment against the lands named herein, and each tract of land therein included is hereby found to be benefited by the proposed current services in the amount of the assessment levied against it. 2. Such assessment shall be payable in no more than one annual installment and shall bear interest at the rate of six (6%) percent from the date of adoption of this assessment resolution. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole assessment on such property to the City's Assessing Division, and they may at any time thereafter, pay to the City's Assessing Division the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 12 or interest will be charged through December 31 of the next succeeding year. 4. The City Clerk shall forthwith transmit a certified duplicate of this assessment roll to the County Auditor to be extended on the property tax lists of the County and such assessments shall be collected and paid over in the same manner as other municipal taxes. Adopted by the City Council of the City of Richfield this 11th day of October, 2011. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk AGENDA SECTION: PROPOSED ORDINANCE AGENDA ITEM# 9 REPORT# 207 IMAM STAFF REPORT RICHFIELD CITY COUNCIL MEETING 1 OCTOBER 11, 2011 KAREN BARTON, ASSISTANT REPORT PREPARED BY: COMMUNITY DEVELOPMENT DIRECTOR NAME,TITLE DEPARTMENT DIRECTOR MI / AL REVIEW: J. 1 7-70 SIGNATUI àY c ::BYCITY Pria/MIP JA I I1 ITEM FOR COUNCIL CONSIDERATION: Consideration of proposed sale of land to Wellington Management, Inc. I. RECOMMENDED ACTION: By Motion: • Accept the Purchase Agreement or extend a counterproposal to the Purchase Agreement; and • Approve second reading of an ordinance providing for the sale of certain real property of the City to Wellington Management, Inc. II. BACKGROUND At the regular meeting of the City Council on August 9, 2011, the City Council considered and approved a planned unit development plan for the former Kmart site, to be redeveloped by Wellington Management, Inc. (Wellington). That development is immediately adjacent to two parcels of property owned by the City of Richfield and described as Lot 2 and Lot 3, Block 1, Heyman Addition. Lot 2 is located at the northeast corner of 66th Street and Lyndale Avenue, and Lot 3 runs along Lyndale Avenue between 66th Street and 65th Street. At the August 17, 2011 Special City Council meeting, the City Council accepted a Purchase Agreement and approved the sale of Lot 2 to Wellington to facilitate the construction 10112011 Proposed Sale of Lot 3 Heyman Addn - Second Reading of a restaurant/retail building at the corner of Lyndale Avenue and 66th Street. At that time, Wellington did not anticipate a need to acquire Lot 3. Subsequently, Wellington has learned through their architect and engineer that they will need to acquire Lot 3, or request an easement from the City, to allow for the proposed LA Fitness to be constructed as planned. Wellington submitted a Purchase Agreement to the City and the City Council approved a counter-offer to the Purchase Agreement at their September 27, 2011 meeting and conducted a first reading of an ordinance to convey the property to Wellington. Staff and Legal Counsel have had very little time to review the attached amended Purchase Agreement (that is intended to reflect the City Council's counter-offer) before its inclusion in this City Council packet. As a result, there may be further revisions that will be identified in a more thorough review of the document. If that is the case, staff will provide a revised Purchase Agreement to the City Council at the Council meeting and will work closely with representatives of Wellington to ensure agreement with such revisions. III. BASIS OF RECOMMENDATION A. POLICY • The City of Richfield actively encourages and supports the improvement and redevelopment of functionally obsolete or economically disadvantaged properties, in order to improve the City's tax base and provide jobs. B. CRITICAL TIMING ISSUES • Wellington proposes to close on the Kmart site in October and redevelopment is scheduled to begin immediately thereafter, with construction of the LA Fitness to begin within 120 days following closing. C. FINANCIAL • The approved Purchase Agreement provides for a sale price of $1,000. D. LEGAL • The City Attorney will be at the meeting to answer questions. • At the time of distribution of this staff report, the Purchase Agreement has not been reviewed by legal counsel; however they will have reviewed it prior to the City Council meeting. E. ENVIRONMENTAL CONSIDERATIONS • N/A IV. ALTERNATIVE RECOMMENDATION(S) • Approve a second reading of the ordinance with modifications • Do not conduct second reading of ordinance V. ATTACHMENTS • Ordinance • Purchase Agreement VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Representatives of Wellington Management, Inc. - ' BILL NO. AN ORDINANCE PROVIDING FOR THE SALE OF CERTAIN REAL PROPERTY OF THE CITY THE CITY OF RICHFIELD DOES ORDAIN: Section 1. The following property of the City is hereby authorized to be sold to Wellington Management, Inc. or such other entity as Wellington Management, Inc. may designate in writing. Lot 3, Block 1, HEYMAN ADDITION, Hennepin County, Minnesota Sec. 2. The Mayor and City Manager are authorized and directed to sign all documents necessary to effect the sale contemplated by this ordinance, in accordance with the terms and conditions of the Purchase Agreement as approved by the City Council. Sec. 3. This ordinance will be effective in accordance with Section 3.09 of the City Charter. Adopted this day of October, 2011. By: Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk ct ^a Revision Date: October 5, 2011 REAL ESTATE PURCHASE AGREEMENT THIS REAL ESTATE PURCHASE AGREEMENT ("Agreement") is made as of , 2011 (the "Effective Date"), by and between the City of Richfield, Minnesota, a municipal corporation and political subdivision of the State of Minnesota ("Seller"), and Lyndale Station LLC, a Minnesota limited liability company("Buyer"). In consideration of the terms and conditions of this Agreement, Seller and Buyer agree as follows: 1. Sale of Property. Seller agrees to sell to Buyer fee simple interest in that certain parcel of real estate located in the City of Richfield, Hennepin County, Minnesota, legally described as Lot 3, Block 1, Heyman Addition, and all rights,privileges, servitudes, easements and appurtenances thereunto belonging or appertaining (the "Property"). Buyer hereby agrees to buy the Property from Seller, upon and subject to the conditions and limitations herein contained. 2. Purchase Price. Buyer shall pay to Seller, as consideration for the purchase of the Property, the sum of One Thousand and 00/100 Dollars ($1,000.00) ("Purchase Price"). Buyer shall pay to Seller at Closing (defined below) the Purchase Price by wire transfer or other immediately available funds. 3. Title and Examination. Buyer's obligation to consummate the transaction contemplated by this Agreement shall be subject to the satisfaction or waiver of each of the following conditions ("Examination Conditions") on or before 5:00 p.m. on the date that is one hundred twenty (120) days after the later to occur of: (i) the Effective Date, or (ii) receipt by Buyer of all of the Due Diligence Materials described in Section 3(b) below (the "Contingency Date"). Buyer shall have the unilateral right to waive any of the Examination Conditions, in whole or in part, by written notice to Seller: (a) Title/Survey. Seller shall, within ten (10) days after the Effective Date, deliver to Buyer all of Seller's existing surveys, title policies, commitments, abstracts and exception documents in Seller's possession or control (if any). Buyer shall, within ten (10) days after the Effective Date, at Buyer's expense, obtain a current title commitment ("Commitment") for the Property (with legible copies of all underlying title documents listed in the Commitment) for a 2006 ALTA form owner's title policy (the "Title Insurance Policy") in the amount of the Purchase Price issued by the Title Company (defined below) showing fee simple title in Seller, subject only to such encumbrances as Buyer shall specifically agree to in writing (collectively, the "Permitted Encumbrances"). Buyer may obtain, at Buyer's expense, an updated ALTA as-built survey ("Survey") for the Property. If the Survey discloses survey defects other than the Permitted Encumbrances or if the Commitment shows exceptions other than the Permitted Encumbrances (collectively, the "Unpermitted Encumbrances"), then Buyer shall notify Seller, in writing, on or before the Contingency Date, specifying the Unpermitted Encumbrances (the "Objections"). The Unpermitted Encumbrances shall include, but not be limited to, that certain Driveway Easement recorded as Document No. 388577 as shown on the Certificate of Title (Certificate No. 589872) for the Property. The "Title Company" shall be Commercial Partners Title, LLC, 200 South Sixth Street, Suite 1300, Minneapolis, MN 55402. Seller shall use commercially reasonable efforts to correct or cure Buyer's Objections. Seller shall have thirty (30) days ("Cure Period") after receipt of the Objections to cure such Objections. If Seller fails to cure any such Objections to the reasonable satisfaction of Buyer within the time provided above and to give Buyer written notice thereof, Buyer shall have the option to either: (i) terminate this 8176632v1 1 Revision Date: October 5, 2011 Agreement by giving written notice to Seller within ten (10) business days following the expiration of the Cure Period; or(ii) waive the Objections and proceed with Closing. (b) Due Diligence Materials; Tests. Seller shall, within ten (10) days after the execution of this Agreement, deliver to Buyer copies of the following due diligence materials to the extent in Seller's possession or control, for Buyer's review and analysis: (i) all environmental reports and test results affecting the Property; (ii) soil reports affecting the Property; (iii) any information regarding septic tanks or wells affecting the Property; (iv) all blueprints and engineering plans for the Property; and (v) any other documents that materially affect the ownership or management of the Property or any other documents or records that Buyer may reasonably request (collectively, the "Due Diligence Materials"). Seller shall allow Buyer and Buyer's officers, employees, agents, attorneys, architects and engineers access to the Property without charge and at all reasonable times, for the purpose of making such inspections, tests and verifications (collectively, "Tests") as they shall deem reasonably necessary. Seller shall cooperate with Buyer to resolve, at Seller's expense, any title, utility or environmental issues discovered by Buyer on or before the Contingency Date. Buyer may, if the Due Diligence Materials or Tests disclose the presence of a hazardous substance or contaminant or the existence of geotechnical or other conditions that would interfere with Buyer's planned use of the Property, terminate this Agreement in the exercise of its reasonable discretion at any time on or before the Contingency Date. If Buyer elects to terminate this Agreement, then Buyer shall, on or before the Contingency Date, notify Seller in writing that the Examination Conditions have not been satisfied. Upon such termination, neither party will have any further rights or obligations regarding this Agreement or the Property except for those indemnities and obligations that expressly survive Closing or the termination of this Agreement. 4. Covenants by Seller. Seller covenants and agrees that from the Effective Date until the Closing Date, Seller shall conduct its business involving the Property as follows, and during such period will: (a) Refrain from conveying the Property or any interest therein, or creating on the Property any easements or other interests affecting the Property. (b) Refrain from entering into or amending any leases, contracts or other agreements affecting the Property without the prior written consent of Buyer, which consent shall not be unreasonably withheld, delayed or conditioned. (c) Operate, maintain, repair and insure the Property in a manner consistent with the existing operation, maintenance, repair and insurance of the Property. 5. Representations by Seller. Seller hereby represents and warrants to Buyer as follows: (a) Seller has the requisite power and authority to enter into and perform this Agreement and the Seller's Closing Documents (as herein defined); such documents have been duly authorized by all necessary action on the part of Seller and have been or will be duly executed and delivered; such execution, delivery and performance by Seller of such documents will not conflict with or result in a violation of any judgment, order, or decree of any court or arbiter to which Seller is a party; and such documents are valid and binding obligations of Seller, and are enforceable against Seller in accordance with their terms. 8176632v1 2 q -y Revision Date: October 5, 2011 (b) Seller is not a "foreign person," "foreign partnership," "foreign trust" or"foreign estate" as those terms are defined in Section 1445 of the Internal Revenue Code. There is no action, litigation, investigation, condemnation or proceeding of any kind pending or threatened against the Property. There are no leases or other occupancy agreements affecting the Property. (c) The Property and its current use are in compliance with all federal, state and municipal laws, ordinances, rules and regulations. (d) To the best of Seller's knowledge, Seller has disclosed and made available to Buyer all reports and investigations commissioned by, in Seller's possession or otherwise readily available to Seller relating to Hazardous Substances and the Property. The term "Hazardous Substance," in the " Comprehensive fined in the singular and plural form, means any "hazardous substance" as defined Environmental Response, Compensation and Liability Act of 1980, as amended from time to time (42 U.S.C. §§ 9601 et. seq.), any substances or materials that are classified or considered to be hazardous, contaminants, toxic or pollutants, or otherwise regulated under the laws of the State of Minnesota, crude oil and any fraction thereof, asbestos in any form or condition, polychlorinated biphenyls in any form or condition, and any other substance that may be harmful to human health including, without limitation, mold and radon. Seller is not aware of any environmental condition, situation or incident on, at, or concerning the Property that could give rise to an action or liability under any law, rule, ordinance, or common law theory. To the best of Seller's knowledge, there are no past or present investigations, administrative proceedings, litigation, regulatory hearings or other actions proposed, threatened or pending, alleging non-compliance with or violation of any federal, state or local laws, ordinances, rules or regulations dealing with environmental, health or safety matters ("Environmental Laws") or relating to any required environmental permits, and neither Seller nor any third party has violated any Environmental Laws with respect to the Property. To the best of Seller's knowledge, there are no underground or above ground storage tanks on the Property and no such tanks have been removed during Seller's ownership of the Property. (e) There are no service, maintenance or other contracts or equipment leases relating to the Property that will remain in place post-Closing. (0 The Due Diligence Materials made available and to be made available to Buyer by Seller shall be true, accurate, and complete in all material respects and shall not omit any material information. (g) Seller holds good, marketable fee simple title to the Property. Seller has not entered into any other purchase agreements, options, rights of first offer, rights of first refusal or related agreements with any other party giving any other party the right to purchase the Property or any portion thereof, and no such rights exist in any other party. • (h) There are no unsatisfied judgments, state or federal tax liens or encroachments or boundary line questions affecting the Property. (i) There is no pending or threatened condemnation proceeding or similar proceeding or assessment affecting any part of the Property. (j) There are no parties with any interest in the Property, and no other signatures are required to make this Agreement fully enforceable by Buyer, other than Seller. If at any time prior to Closing, Seller learns of events or circumstances which render any of the representations or warranties set forth in this Section 5 inaccurate in any respect, Seller shall 8176632v1 3 — s Revision Date: October 5, 2011 immediately notify Buyer in writing, and in such event, Buyer shall have the right to terminate this Agreement upon written notice to Seller. In the event Buyer elects not to so terminate this Agreement, the parties shall proceed pursuant to the terms of this Agreement, and the applicable representations and warranties shall be deemed modified as disclosed in such notice from Seller. The representations and warranties of Seller contained in this Agreement, as the same may be modified, shall survive Closing for a period of twelve (12) months. Seller shall indemnify, defend and hold harmless Buyer and Buyer's lenders, principals, officers, employees, directors and members from and against any and all loss, cost, liability, damage or expense (including reasonable attorneys' fees and court costs) suffered or incurred by any of such indemnified parties as a result of the breach by Seller of any of the representations and warranties set forth in this Agreement. 6. Representations by Buyer. Buyer represents to Seller that Buyer is a limited liability company duly organized and validly existing and in good standing under the laws of the State of Minnesota; Buyer has the requisite power and authority to enter into this Agreement and the Buyer's Closing Documents (defined below); such documents have been duly authorized by all necessary action on the part of Buyer and have been or will be duly executed and delivered; and such documents are enforceable against Buyer in accordance with their terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, creditor's rights and other similar laws. 7. Closing. (a) Closing Date. The closing of the purchase and sale contemplated by this Agreement (the "Closing") shall occur on a date to be determined by Buyer, provided such date is no sooner than the closing date of Buyer's purchase of the Former K-Mart Property (defined below) and no later than June 1, 2012 (the "Closing Date"). The Closing shall be held at the office of the Title Company, or at such other place as the parties may mutually agree. Seller agrees to deliver possession of the Property to Buyer on the Closing Date, free and clear of the rights of any tenants, licensees or occupants. Notwithstanding anything to the contrary, Buyer may simultaneously close on the purchase of the Property and the Former K-Mart Property in Buyer's sole discretion upon notice to Seller. (b) Buyer's Closing Conditions Precedent. Buyer's obligation to consummate the transaction contemplated by this Agreement shall be subject to the satisfaction or waiver of each of the following conditions ("Buyer's Closing Conditions Precedent"); provided, however that Buyer shall have the unilateral right to waive any Buyer's Closing Conditions Precedent, in whole or in part, by written notice to Seller: (i) On or before the Contingency Date, Seller shall have obtained any and all necessary approvals and findings authorizing Seller's conveyance of the Property to Buyer in accordance with Section 4. (ii) The representations in Section 5 of Seller hereof shall be, in all material respects, true and complete as of the Closing Date. (iii) Seller shall have performed all of the obligations required to be performed by Seller under this Agreement, as and when required by this Agreement. (iv) There shall not have been instituted and be pending any action or proceeding before any court, governmental agency or other regulatory or administrative agency or commission challenging the purchase and sale of the Property or the transactions related thereto. 8176632v1 4 Revision Date: October 5, 2011 (v) Neither Buyer nor Seller shall have terminated this Agreement as provided herein. (vi) On the Closing Date, title to the Real Property shall be acceptable to Buyer in accordance with the provisions of Section 3(a). (vii) Buyer shall have closed on the purchase of the property located adjacent to the Property and legally described as Lot 1, Block 1, Heyman Addition, Hennepin County, Minnesota (the "Former K-Mart Property"). Buyer may simultaneously close on the purchase of the Property and the Former K-Mart Property. In the event Buyer is unable to purchase the Former K-Mart Property for any reason, Buyer shall not be obligated to purchase the Property and may, without penalty, terminate this Agreement at any time upon written notice to Seller. Seller shall cooperate with Buyer in accomplishing the Buyer's Closing Conditions Precedent contained in this Section 7, including but not limited to Seller providing or obtaining any relevant information, certifications or applications, executing documents, and holding hearings or otherwise participating in any regulatory or governmental processes; provided, however, the foregoing shall not limit or restrict Seller's exercise of Seller's legal authority and discretion with respect to any application that Buyer may submit to Seller in its capacity as a government entity and regulatory agency. In the event that all Buyer's Closing Conditions Precedent have not been satisfied or waived as of the scheduled Closing Date or other date specified above, this Agreement may terminate at Buyer's election. In such event, neither party will have any further rights or obligations regarding this Agreement or the Property. (c) Seller's Closing Condition Precedent. Seller's obligation to consummate the transaction contemplated by this Agreement shall be subject to the satisfaction or waiver of the following condition; provided, however that Seller shall have the unilateral right to waive such condition, in whole or in part, by written notice to Buyer: (i) Buyer shall have closed on its purchase of the Former K-Mart Property or shall simultaneously close on its purchase of the Property and the Former K-Mart Property. In the event Buyer is unable to purchase the Former K-Mart Property or does not purchase the Former K-Mart Property, this Agreement shall be null and void and of no effect. 8. Closing Deliveries. (a) Seller's Closing Documents. On the Closing Date, Seller shall execute and/or deliver to Buyer or cause to be executed and/or delivered the following (collectively, the "Seller's Closing Documents"): (i) Deed. A Limited Warranty Deed ("Deed") conveying the Property to Buyer, subject only to the Permitted Encumbrances. (ii) Certificate Regarding Representations in Section 5. A certificate stating that the representations in Section 5 made by Seller under this Agreement are true and complete in all material respects as of the Closing Date. (iii) FIRPTA Affidavit. A non-foreign seller affidavit properly containing such information as is required by Section 1445(b)(2) of the Internal Revenue Code and the regulations promulgated thereunder. 8176632v1 5 Revision Date: October 5, 2011 (iv) Title Documents. Such affidavits of Seller, transfer tax declarations or other documents as may be reasonably required by the Title Company in order to record the Deed and issue the Title Insurance Policy. (v) Miscellaneous. Other documents reasonably required to consummate the transaction this Agreement contemplates. (vi) Seller's Affidavit. An Affidavit of Seller indicating that on the Closing Date there are no outstanding, unsatisfied judgments, tax liens or bankruptcies against or involving the Property; that there has been no labor or material furnished to the Property for which payment has not been made or for which mechanics' liens could be filed; that there are no unrecorded interests in the Property; and that there are no encroachment or survey issues of which Seller is aware; together with whatever standard owner's affidavit and/or indemnity may be reasonably required by the Title Company to issue the Title Insurance Policy conforming to the requirements of this Agreement. (vii) Well Certificate. If there are wells on the Property, a Well Certificate in the form required by Minn. Stat. §103I. (viii) Title Policy. The Title Insurance Policy or a marked-up title Commitment, meeting the requirements of this Agreement. (ix) Termination of Service Contracts. Evidence that any service contracts for the Property have been terminated and that there are no claims, penalties or liabilities by or owed to such vendors that could adversely affect Buyer or the Property as a result of such terminations. Any service contracts affecting the Property shall be terminated prior to Closing by Seller at Seller's expense. (b) Buyer's Closing Documents. On the Closing Date, Buyer will execute and/or deliver or cause to be executed and/or delivered to Seller the following (collectively, the "Buyer's Closing Documents"): (i) Purchase Price; Title Documents. The Purchase Price and such affidavits of Buyer, transfer tax declarations or other documents as may be reasonably required by the Title Company in order to record the Deed and issue the Title Insurance Policy. (ii) Miscellaneous. Other documents reasonably required to consummate the transaction this Agreement contemplates. 9. Adjustment and Prorations. For purposes of calculating prorations, Buyer shall be deemed to be in title to the Property for the entire day upon which the Closing occurs. All such prorations shall be made on the basis of the actual number of days of the year and month that shall have elapsed as of the Closing Date. Except as otherwise expressly provided in this Agreement, all prorations provided for herein shall be final. (a) Real Estate Taxes and Special Assessments. Real estate taxes and installments of special assessments payable therewith due and payable in the year of Closing shall be prorated on a daily basis as of the Closing Date based upon the most recent tax bills. Real estate taxes and 8176632v1 6 Revision Date: October 5, 2011 installments of special assessment payable therewith due and payable in the year prior to the year of Closing and all prior years shall be paid by Seller. Seller shall pay on or before the Closing Date all levied, pending and deferred special assessments as of the Closing Date. (b) Title Insurance. Buyer shall pay all title examination fees and Commitment fees of the Title Company. Buyer shall pay the premium for the Title Insurance Policy, with endorsements and extended coverage over the standard exceptions. Buyer shall also pay all costs of any lender's title insurance policy. (c) Survey Costs. Buyer shall pay all costs of the Survey. (d) Closing Fee. Buyer shall pay all closing fees charged by the Title Company. (e) Transfer Tax; Sales Tax. Buyer shall pay all state deed tax owed to the State of Minnesota and any other transfer taxes or sales tax due in connection with the sale of the Property to Buyer. (f) Recording Costs. Buyer shall pay the cost of recording the Deed. 10. Default/Remedies. (a) Seller's Default. In the event of a breach or default by Seller under the terms and conditions of this Agreement, Buyer shall have the right (i) to terminate this Agreement, (ii) to enforce specific performance of this Agreement, provided that any action for specific performance must be commenced within twelve (12) months of the scheduled Closing Date, as the same may have been extended pursuant to the provisions hereof, or (iii)to sue Seller for Buyer's damages and out-of-pocket costs and expenses, including reasonable attorneys' fees, in connection with the Property. (b ) Buyer's Default. In the event of a breach or default by Buyer under the terms and conditions of this Agreement, Seller, as its sole and exclusive remedy, shall have the right to terminate this Agreement by giving written notice to Buyer under Minnesota Statutes, Section 559.21. If Buyer fails to cure such default within thirty (30) days after the date of such notice, this Agreement shall terminate and neither party will have any further obligations under this Agreement. 11. Condemnation. If, prior to the Closing Date, eminent domain proceedings are commenced against all or any substantial part of the Property, Seller shall immediately give notice to Buyer of such fact and, at Buyer's option (to be exercised within thirty (30) days after Seller's notice), this Agreement shall terminate. In the event of any such termination, neither party will have any further obligations under this Agreement (other than the surviving indemnity obligations, which shall survive termination). If Buyer fails to elect to terminate this Agreement in the manner provided in this Section 12, then there shall be no reduction in the Purchase Price, and Seller shall assign to Buyer at the Closing all of Seller's right, title and interest in and to any award made or to be made in the condemnation proceedings and all payments made in lieu of condemnation. Prior to the Closing Date, Seller shall not designate counsel, appear in, or otherwise act with respect to the condemnation proceedings without Buyer's prior written consent, which consent shall not be unreasonably withheld or delayed. 12. Broker's Commissions. Seller represents to Buyer that in connection with the transaction contemplated hereby, no third party broker or finder has been engaged or consulted by Seller or is entitled to compensation or commissions in connection herewith. Seller shall defend, indemnify and hold harmless Buyer from and against any and all claims of brokers, finders or any like third party claiming any right to commissions or compensation by or through acts of Seller in connection herewith. This Section 12 shall survive the expiration or termination of this Agreement or the Closing. 8176632v1 7 Revision Date: October 5, 2011 13. Assignment. Buyer may not assign its rights under this Agreement without Seller's prior written consent. Any assignment shall be subject to the provisions, terms, covenants and conditions of this Agreement and such assignment and assumption shall be evidenced by a written agreement. Seller may not assign its rights under this Agreement without the prior written consent of Buyer. 14. Notices. Any notice or other communication in connection with this Agreement shall be in writing and shall be sent by nationally recognized overnight courier guaranteed next business day delivery, by facsimile transmission, by certified mail, return receipt requested, or by personal delivery, properly addressed as follows: If to Seller: City of Richfield 6700 Portland Avenue Richfield, MN 55423 Attn: Debbie Goettel and Steven Devich Facsimile No.: (612) 861-9749 With a copy to: Kennedy& Graven 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 Attn: Corrine Heine Facsimile No.: (612) 337-9310 If to Buyer: Lyndale Station LLC 1625 Energy Park Drive, Suite 100 St. Paul, MN 55108 Attn: Tanya Bell Facsimile No.: (651) 292-0072 With a copy to: Leonard, Street and Deinard 150 South Fifth Street, Suite 2300 Minneapolis, MN 55402 Attn: Gina Fox Facsimile No.: (612) 335-1657 All notices shall be deemed given one (1) business day following deposit if delivered to an overnight courier guaranteeing next day delivery, two (2) business days following deposit if sent by certified mail, or on the same day if sent by personal delivery or by facsimile (with proof of transmission). Any party may change its address for the service of notice by giving written notice of such change to the other party, in any manner above specified. 15. Captions; Entire Agreement; Modification. The section headings or captions appearing in this Agreement are for convenience only, are not a part of this Agreement, and are not to be considered in interpreting this Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter herein contained, and all prior negotiations, discussions, writings and agreements between the parties with respect to the subject matter herein contained are superseded and of no further force and effect. No covenant, term or condition of this Agreement shall 8176632v1 8 q - Ia Revision Date: October 5, 2011 be deemed to have been waived by either party, unless such waiver is in writing signed by the party charged with such waiver. 16. Binding Effect; Controlling Law; Severability. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. The unenforceability or invalidity of any provisions hereof shall not render any other provision herein contained unenforceable or invalid. 17. Time of Essence; Counterparts; Interpretation; Survival. Time is of the essence of this Agreement. Should the date for the giving of any notice, the performance of any act, or the beginning or end of any period provided for herein fall on a Saturday, Sunday or other legal holiday, such date shall be extended to the next succeeding business day which is not a Saturday, Sunday or legal holiday. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. The respective covenants, agreements, indemnifications, warranties and other terms of this Agreement will survive and be in full force and effect after the Closing, and shall not be deemed to have merged into any of the closing documents. 18. No Negotiation. Seller and its employees, agents and representatives will not: (a) directly or indirectly solicit, initiate or encourage any inquiries or proposals from, discuss or negotiate with, provided any non-public information to, or consider the merits of any unsolicited inquiries or proposals from any person or entity (other than Buyer) relating to any transaction involving the sale or purchase of the Property in whole or in part or similar transaction; or (b) respond to solicitations of any persons or entities (other than Buyer) relating to the purchase or sale of the Property in whole or in part. 19. Representation by Counsel. The parties acknowledge that each party to this Agreement has been represented by counsel and such counsel have participated in the negotiation and preparation of this Agreement. This Agreement shall be construed without regard to any presumption or rule requiring that it be construed or constructed against the party who has drafted or caused this Agreement to be drafted. 20. Lyndale Right-of-Way Dedication. Buyer shall dedicate to Seller approximately twelve (12) feet behind the curb cut along Lyndale Avenue (the approximate location of which is shown on Exhibit A attached hereto) for street right-of-way purposes. [Signature Page Follows] 8176632v1 9 Revision Date: October 5, 2011 Signature Page to Real Estate Purchase Agreement IN WITNESS WHEREOF, Seller and Buyer have executed this Agreement as of the day and year first above written. SELLER: BUYER: CITY OF RICHFIELD,MINNESOTA LYNDALE STATION LLC a Minnesota limited liability company By: By: Name: Debbie Goettel Name: Stephen B. Wellington, Jr. Title: Mayor Its: Chief Manager By: Name: Steven Devich Title: City Manager 8176632v1 10 Revision Date: October 5, 2011 EXHIBIT A TO REAL ESTATE PURCHASE AGREEMENT Depiction of Lyndale Street Right-of-Way 8176632v1 1 AGENDA SECTION: OTHER BUSINESS AGENDA ITEM# 10 REPORT# 208 rid" STAFF REPORT RICHFIELD CITY COUNCIL MEETING OCTOBER 112011 REPORT PREPARED BY: C t . •UMHOLZ, EXEC. COORDINATOR V N. It;TLE REVIEWED BY CITY MANAGER: C dl' ��� . i_1. ITEM FOR COUNCIL CONSIDERATION: Consideration of appointment to fill youth member terms on City advisory commissions. I. RECOMMENDED ACTION: By Motion: Approve the appointment to fill the youth member terms on the City's advisory commissions. II. BACKGROUND The Human Rights Commission (1) and Friendship City Commission (2) have youth member term vacancies. Advertisements were placed in the Richfield Sun, on the Cable TV Community Bulletin Board, and the City's Website. Notices were also sent to Richfield High School, Academy of Holy Angels and local churches. Terms are effective upon appointment through August 31, 2012. An applicant was interviewed at a Special City Council meeting on October 11, 2011. III. BASIS OF RECOMMENDATION A. POLICY • The City advisory commissions were established by City ordinance or resolution. • The Mayor directs the City Manager's office to conduct an annual recruitment seeking applicants to fill expiring terms. 1011 commission • The interview of the applicant was conducted at a Special City Council meeting. The meeting was posted in accordance with the open meeting law requirements. B. CRITICAL TIMING ISSUES • The app licant was interviewed at a Special City Council meeting on October 11, 2011. • Terms are effective upon appointment through August 31, 2012. C. ENVIRONMENTAL CONSIDERATIONS • None IV. ALTERNATIVE RECOMMENDATIONS) • Defer appointment to another Council meeting. V. ATTACHMENTS • Vacancy list. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None. /0 - 10/04/1110/04/11 COMMISSION VACANCIES YOUTH APPOINTMENTS FRIENDSHIP CITY COMMISSION —2 vacancies (youth) August 31, 2012 (youth) August 31, 2012 HUMAN RIGHTS COMMISSION — 1 vacany (youth) August 31, 2012 9/14/09