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CCA 11/26/2018 1"°°f CITY COUNCIL MEETING OF NOVEMBER 26, 2018 Fridley __ The City of Fridley will not discriminate against or harass anyone in the admission or access to, or treatment, or employment in its services, programs, or activities because of race, color, creed, religion, national origin, sex, disability, age, marital status, sexual orientation or status with regard to public assistance. Upon request, accommodation will be provided to allow individuals with disabilities to participate in any of Fridley's services, programs, and activities. Hearing impaired persons who need an interpreter or other persons with disabilities who require auxiliary aids should contact Roberta Collins at 572-3500. (TTD/572-3534) CONFERENCE MEETING (5:00 p.m.) 1. Presentation on Safety Procedures at the Civic Campus 2. Proposed 2019 Budget Review PLEDGE OF ALLEGIANCE. APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: 1. City Council Meeting of November 13, 2018 1 - 11 OLD/NEW BUSINESS: 2. Second Reading of an Ordinance Amending the City Code of the City of Fridley, Minnesota, by Repealing Chapter 3 Entitled "Personnel" in its Entirety and Adopting a New Chapter 3 Entitled "Personnel"; and Adopt Official Title and Summary Ordinance; and Resolution Providing the Authority to the City Manager to Formulate and Execute Administrative Policies, Rules and Regulations for Employment And Approving Non-Union Employee Paid Holiday and Annual Leave Cap 12 - 17 FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 26, 2018 PAGE 2 APPROVAL OF PROPOSED CONSENT AGENDA: NEW BUSINESS (CONTINUED): 3. Approve the City of Fridley Energy Action Plan 18 - 19 4. Approve First Amendment to Tower Site Lease Agreement between the City of Fridley and NCWPCS MPL 31 —Year Sites Tower Holdings LLC 20 - 27 5. Claims (ACH PCard 1811; 183029 — 183128) 28 - 51 OPEN FORUM, VISITORS: Consideration of items not on Agenda — 15 minutes ADOPTION OF AGENDA: PUBLIC HEARINGS/NEW BUSINESS: 6. Consider Revising and Adding Language to the Fridley City Code, Chapter 220, Residential Rental Property Maintenance and Licensing Code; and First Reading of an Ordinance Amending Chapter 220 of the Fridley City Code Related to the Residential Rental Property Maintenance and Licensing Code 52 - 86 FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 26, 2018 PAGE 3 PUBLIC HEARINGS/NEW BUSINESS (CONTINUED): 7. Consider Transferring Property to the Fridley Housing and Redevelopment Authority to Facilitate the Redevelopment of the Fridley Municipal Center Campus, Generally Located at 6431 University Avenue N.E. (Ward 1) and First Reading of an Ordinance Under Section 12.06 of the City Charter and Minnesota Statutes Section 465.035 Regarding Certain Real Estate and Authorizing the Conveyance Thereof 87 - 90 NEW BUSINESS (CONTINUED): 8. Resolution Providing for Water, Sewer, Storm Water and Recycling Rate Changes for 2019 91 - 95 9. Resolution Authorizing the Donation of Real Property to the City of Fridley by Ralcorp Frozen Bakery Products, Inc., Pursuant to Minnesota Statutes §465.03 (Ward 3) 96 - 98 10. Informal Status Reports 99 ADJOURN. CITY COUNCIL MEETING CITY OF FRIDLEY NOVEMBER 13, 2018 The City Council meeting for the City of Fridley was called to order by Mayor Lund at 7:04 p.m. MEMBERS PRESENT: Mayor Lund Councilmember Barnette Councilmember Varichak Councilmember Bolkcom MEMBERS ABSENT: Commissioner Saefke OTHERS PRESENT: Wally Wysopal, City Manager Scott Hickok, Community Development Director James Kosluchar, Public Works Director Dan Tienter, Finance Director Deb Skogen, City Clerk PRESENTATION: Heart Safe Community Designation APPROVAL OF PROPOSED CONSENT AGENDA: APPROVAL OF MINUTES: 1. City Council Meeting of October 22, 2018. APPROVED. OLD BUSINESS: 2. Second Reading of an Ordinance to Amend the City Code of the City of Fridley, Minnesota, by Making a Change in Zoning Districts (Rezoning Request, ZOA #18-04, by Sherman Associates Development, LLC) (Ward 3). THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 3. Second Reading of an Ordinance to Amend Chapter 205 of the Fridley Zoning Code Pertaining to exterior Storage (Text Amendment Request, TA #18-02, by the City of Fridley) (Ward 3). FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13,2018 PAGE 2 WAIVED THE READING OF THE ORDINANCE AND ADOPTED ORDINANCE NO. 1362 ON SECOND READING AND ORDERED PUBLICATION. NEW BUSINESS: 4. Receive the Minutes from the Planning Commission Meeting of October 17,2018. RECEIVED. 5. Preliminary Plat Request, PS #18-04, by Sherman Associates Development, LLC, to Create Separate Lots for Each Portion of the Proposed Development, Generally Located at 6050 Main Street NW (Ward 3). APPROVED. 6. Approve Capital Project Grant Agreement Between the City of Fridley and the Mississippi Watershed Management Organization for Smart Salting Best Management Practices. THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. 7. Approve Memorandum of Understanding Agreement for Federal Equitable Sharing for the Anoka-Hennepin Narcotics and Violent Crimes Task Force. APPROVED. 8. Receive the Twin Cities Gateway Fiscal year 2019 Annual Budget. APPROVED. 9. Claims (182785 - 183028). APPROVED. 10. Business Licenses THIS ITEM WAS REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA. ADOPTION OF PROPOSED CONSENT AGENDA: MOTION by Councilmember Barnette to adopt the proposed consent agenda with the removal of Item Nos. 2, 6 and 10, Seconded by Councilmember Varichak. 2 FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2018 PAGE 3 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OPEN FORUM,VISITORS: No one from the audience spoke. ADOPTION OF AGENDA: MOTION by Councilmember Bolkcom to adopt the agenda with the addition of Item Nos. 2, 6 and 10. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. NEW BUSINESSES: 11. First Reading of an Ordinance Amending the City Code of the City of Fridley, Minnesota, by Repealing Chapter 3 Entitled "Personnel" in its Entirety and Adopting a New Chapter 3 Entitled "Personnel". Deb Dahl, Director of Community Services & Employee Resources, stated Fridley City Code, Chapter 3, involves personnel matters. Staff is requesting Council waive the reading and adopt the first reading of the ordinance to amend Fridley City Code, Chapter 3. The entire chapter will be replaced. City personnel policies are encompassed in the ordinance, which can be cumbersome to change, replace or make amendments. It is difficult to keep pace with the market and laws that change and update the ordinance with union negotiations that come up throughout the years. Once the ordinance is adopted, staff will propose amendments. One of the amendments is to add a holiday to non-union staff to take affect the first of 2018. Non-union staff currently have 11 days, and the union staff have 12 days. Going forward a floating holiday will be converted for use at staff's own discretion. Another change is to increase the annual leave from 240 hours to 320 hours. Councilmember Barnette asked if non-union paid fair share or union dues. Ms. Dahl replied no. Councilmember Barnette asked if they get the same benefits. Ms. Dahl said the union does not get benefits without paying union dues. On the non-union side, they are not paying any dues, but their benefits are different for these two items. Staff is asking to line up the non-union benefits with union benefits. Councilmember Barnette recalled when he worked for the schools there were people who benefited from union negotiations but did not pay dues to receive the benefits. Fair share pays a portion of dues to receive the same benefits. 3 FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2018 PAGE 4 Ms. Dahl noted that not all benefits will be aligned. Health, dental and vacation are aligned but other benefits remain separate for the union like overtime, comp. time, court time rules, etc. Councilmember Bolkcom thought it made sense to align the holidays. Mayor Lund said he understood the concern of staff paying union dues and non-union staff getting the same thing. Wally Wysopal, City Manager, said they are not trying to compare union vs non-union, but these things are being aligned based on market rate comparison. There are many different terms and conditions in the union contract that are not available to non-union positions. MOTION by Councilmember Bolkcom to waive the reading of the ordinance and adopt the ordinance on first reading and ordered publication. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. OLD BUSINESS: 2. Second Reading of an Ordinance to Amend the City Code of the City of Fridley, Minnesota, by Making a Change in Zoning Districts (Rezoning Request, ZOA #18-04, by Sherman Associates Development, LLC) (Ward 3). Councilmember Bolkcom said she was surprised with this change and is leery, as another project with underground parking has resulted in people who live there parking on the street. She asked the representative to talk with the audience so residents can understand how this changed since the last meeting. Carole Mette, Sherman and Associates, stated that when they looked at the site plan this spring, the plan was to build a three-story senior project. More detail pricing was received a few weeks ago and the pricing for the senior project was significantly higher than the market rate project. After discussion, it was decided to change this project to 4-stories to decrease the cost of the foundation. Underground parking is a large piece of the budget. They have two other senior projects recently opened in Maplewood and Milwaukee, similar to this project. The overall parking ratio has not changed. Parking stalls will be made up by adding stalls to the surface parking versus underground parking. The first site plan was laid out two years ago as a three- story building. The cost of construction changed from 2016 to 2018 and they worked with a general contractor to come up with a solution to reach construction at the same price. The four- story building is the answer with no reduction in parking,just relocation. Councilmember Bolkcom asked if each unit would get one parking spot or if it was based on what type of unit, and if there was a charge for an underground parking spot. 4 FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2018 PAGE 5 Ms. Mette replied that there will be a charge for underground parking based on the market rate study and supply and demand. There will be plenty of parking for people to be on-site. Underground parking will be available on a first-come, first-serve basis. They may have to restrict a unit from renting more than one space if they reach a certain level of occupancy. Councilmember Bolkcom asked with 30 additional surface spots if the green space would increase or stay the same as the proposed plan. Ms. Mette said she did not have the calculation with the increased parking and decreased building footprint. Mayor Lund asked what the rate would be for underground parking. Ms. Mette replied between $50 and $75 a month. Mayor Lund said there is an issue in Fridley with another project that has underground parking. People do not want to pay the extra fee, so they are parking on the street and the City is getting complaints. He said he is concerned there is not enough parking planned for guests that come for holidays, birthdays, etc. He asked where they would park. This project is now reengineered to make units less expensive and build a smaller footprint and take away underground parking and add surface parking. Ms. Mette said they are not changing the footprint to make units less expensive but to make the project financially feasible. This project will have high-end finishes for Fridley and the surrounding areas. People will want to live here because of the amenities--not because it is the cheapest place to live. They lean on the management group for parking ratios and a lot of data was provided to come up with the numbers needed for this type of building. The 1.5 parking spaces per unit does account for visitors. With the transit lot availability, a parking sharing agreement may be feasible, but it is too soon to talk about that. Mayor Lund said he was concerned about using someone else's property for parking. It may be difficult for the parties to come to an agreement and it may not work. Ms. Mette replied that it is not their preference to enter into a shared parking agreement now, but maybe in the future. Councilmember Bolkcom said she did not think project should go forward if they need to ask for a parking agreement. More people may take the train and the parking may not be available. She also thought that underground parking is an amenity that Minnesota residents would like to have. Mayor Lund said he realized this request is for the bank and understood that underground parking could be expensive. Ms. Mette said she agreed with the comments about the parking. They designed the site, the number of units with proper parking in mind and did not plan to depend on metro transit parking 5 FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13,2018 PAGE 6 areas. She said they are not concerned about the amount of parking, and 1.5 stalls per unit was plenty. MOTION by Councilmember Bolkcom to waive the reading of the ordinance and adopt Ordinance No. 1361 on second reading and ordered publication. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 6. Approve Capital Project Grant Agreement Between the City of Fridley and the Mississippi Watershed Management Organization for Smart Salting Best Management Practices. Councilmember Bolkcom asked for more information on this incredible project. Rachel Workin, Environmental Planner, said the City of Fridley is responsible for maintaining city roads for safe winter driving through a combination of plowing and chloride (salt) application. The City currently utilizes seven plow trucks equipped with manually-controlled spreaders which release dry salt onto the road. The manually-controlled system results in an excess amount of salt release, because the driver is not able to set a specific concentration of salt per lane mile or easily adjust the amount of salt released based on speed. There are further disadvantages to applying dry salt as opposed to salt "pre-wetted" by brine as dry salt requires a much higher chloride concentration to be effective, takes longer to activate, and frequently "bounces" outside of the intended application zone. Ms. Workin stated there are long-lasting ecological impacts of this excess salt application. Chloride is a known aquatic contaminant that is nearly impossible to remove from a waterbody. Excess aquatic chloride levels can negatively impact aquatic life and drinking water quality, among other issues. In recognition of the water quality impacts of chlorides, the City of Fridley installed a brine-making system in the new Public Works facility. However, the City was financially limited in the amount and quality of brine-application systems the City would be able to purchase for its plows during the 2018/2019 season. As the Mississippi Watershed Management Organization (MWMO) has recognized chloride reduction as a priority, the City requested grant funding from the MWMO to facilitate the purchase of Smart Salting Best Management Practices for winter maintenance. Ms. Workin said the MWMO capital grant of$80,557 will be used to purchase advanced brine application systems for four of the City's plows. These systems will allow the driver to "pre-wet" the salt with brine before road application, automatically set the concentration of brine and salt based on weather conditions, and adjust the salt application rate based on speed. This equipment also includes monitoring/GPS technology that will allow the City to track the amount of salt used in different locations in order to improve route and salting efficiency. The grant funding will also be used to purchase an anti-icing trailer system. This trailer system will attach to a City truck and can be used to pro-actively apply a low concentration of brine to roads in advance of a winter weather event. This low concentration of brine delays and prevents the bond of ice and snow to 6 FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13,2018 PAGE 7 the roadway and prevents the compaction of snow. As a result, less chloride is needed overall to remove the snow and ice. Ms. Workin said the purchase of this equipment is expected to reduce the amount of salt used by each upgraded plow between 30-40% while also improving road safety. In addition to the ecological benefits, the City expects to see an economic benefit due to the decreased amount of salt needed. During the 2017/2018 season, the City spent City roughly $51,970.46 on salt. This amount would have been expected to increase this upcoming winter season (dependent on weather), since the contracted price on salt increased 19% per ton this year. As a result, the new equipment is expected to save the City an estimated $10,600 during the 2018/2019 winter season. Ms. Workin said this grant does not require an additional cash match, although the City will need to purchase a $200/per truck data fee to access GPS and weather data. The City will also commit to tracking the amount of salt used and sharing this information with the MWMO. The City will also partner with the MWMO to educate its residents and businesses on the importance of and strategies to decrease salt use on their properties. Staff recommends the City Council move to approve the attached Mississippi Watershed Management Organization Grant Agreement#2021824 for the purchase of Smart Salting Best Management Practices. Councilmember Bolkcom said this is a great project and asked if brine salt was more effective at different temperatures. Jim Kosluchar, Public Works Director, replied that brine reduces the melting point temperature of road salt and is more effective at lower temperatures-5 to 10 degrees. MOTION by Councilmember Bolkcom to approve the Capital Project Grant Agreement between the City of Fridley and the Mississippi Watershed Management Organization for Smart Salting Best Management Practices. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. NEW BUSINESS: 10. Business Licenses. Councilmember Bolkcom noted that Duir Massage had no massage therapist listed and she did not think the business should be approved with no therapist listed. Wally Wysopal, City Manager, replied that Duir Massage with Cynthia Miller was a word processing error and she should be listed as the massage therapist. MOTION by Councilmember Bolkcom to approve the Business Licenses with the addition of Cynthia Miller listed as a therapist under Duir Massage. Seconded by Councilmember Varichak. FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13,2018 PAGE 8 UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 12. Resolution Approving a Transit Oriented Development Master Plan, TOD #18-01 by Sherman Associates Development, LLC, on Behalf of the Property Owner, the City of Fridley Housing and Redevelopment Authority, to Allow the Development of the Properties Generally Located at 6050 Main Street N.E. (Ward 3) Scott Hickok, Community Development Director, said there are three land use items that are being requested to allow for the development of the property located at 6050 Main Street and the Northstar Commuter Rail East Fridley Station site: Rezoning request to S-2, plat request to create new lots for each portion of the development including a lot for the Metro Transit parking lot, and the TOD Master Plan. The land use items will allow the construction of a 270-unit mixed income, transit-oriented, multi-family residential development within three buildings. The phased project will allow for the construction of a 95-unit market rate building, a 103-unit independent senior market rate building, and a 72-unit affordable multi-family building. Mr. Hickok said when reviewing the construction estimates, petitioner learned that the cost per unit to build the senior building was significantly higher than the other two buildings. This was due to the fact that it has a much larger footprint, which means an increase in concrete foundation and footings. The number of total parking stalls will remain the same at 162. There is a reduction of 36 underground parking stalls but those stalls have been added to the surface parking lot, keeping the total at 162 stalls. Mr. Hickok said staff received the traffic study on November 6, 2018, and it indicated the roadways and intersections will be acceptable with the expected traffic resulting from the proposed development. The recommendations that were given relate to making sure bicycle parking is accessible and available, that drop-off circles at each building are sufficiently signed and striped, and encouraging on-site loading/unloading to occur outside of peak periods. TOD overlay allows for flexibility when designing a development project that encourages dense, mixed use, and pedestrian-friendly developments. It was also created to provide life cycle housing for people of different income levels and housing space needs within one half mile of the train station. Mr. Hickok stated in the packet is a list of all the performance standards the petitioner is required to meet as part of a TOD project. Some of those standards are related to lot coverage, setback, height, façade articulation, building face, parking, landscaping, sidewalks and lighting. The petitioner has designed the project that meets the TOD standards and will achieve what the City and HRA was hoping to see with development of this land. The Planning Commission reviewed TOD #18-01 in conjunction with the other land use requests for this project at their September 19 meeting. The Planning Commission recommended approval of the TOD master plan with the added stipulation requiring a fence be installed between the project and Parson's Electric to the south. City staff recommend concurrence with the Planning Commission and that Council approve the resolution with the addition of Exhibit C which Council received tonight. 8 FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13,2018 PAGE 9 Bryant Ficek, Spack Consulting, said he has been working with Mr. Hickok studying the parking for this development. They have taken counts out at the site and feel good with what is going on and about the future parking with adding the new development. There are currently 40 people parking there and projections are 80. Looking into the future with projecting traffic, they estimate at peak hours 70 vehicles in the morning and 100 in the afternoon which is an additional five vehicles every three minutes. With the added traffic counts and running them through models per standard operations, the current operations are acceptable. The city code is being met and so is the traffic study. They also see plenty of parking in the plan and came up with some minor recommendations; to make sure there was good bicycle parking and signing and striping for the drop-off area. MOTION by Councilmember Bolkcom to adopt Resolution No. 2018-56. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 13. Resolution Authorizing Execution of Mutual Aid Agreement with Ramsey County Fire Chief's Association to Provide for the Automatic Dispatch of the Closest Emergency Response Unit Regardless of Jurisdictional Boundaries. Brian Weierke, Public Safety Director, stated the Fridley Public Safety Department and New Brighton Public Safety Department have agreed to join into an agreement to provide automatic aid, or "closest unit", for portions of New Brighton and Fridley. Automatic aid allows the 911 dispatcher to "automatically" send prearranged emergency equipment to the city in need. In this case, Ramsey County dispatch would request a fire engine from Fridley for any "confirmed" structure fire in the area designated in New Brighton. In return, Fridley would receive automatic aid from New Brighton of a fire engine for any "confirmed" structure fire in the designated area in Fridley. Chief Weierke noted that the agreement is with the Ramsey County Fire Chiefs Association but allows the Cities of Fridley and New Brighton to determine the extent of the assistance required. Any party may act by resolution to opt out of its participation with at least 60-days written notice of termination to the President, the applicable County Emergency Communications Center, and each of the other Parties. The Fridley Fire Department currently operates under an automatic aid policy with the SBM, Columbia Heights and St. Anthony Fire Departments. St. Anthony currently has to travel through New Brighton to reach fires in Fridley and Fridley will discontinue our auto aid with St. Anthony at the end of 2018. We will continue to work with St. Anthony Fire within our mutual aid requests. Chief Weierke said that automatic aid is critical to a quick response and providing enough firefighters in the event of a structure fire. The City of Fridley relies on automatic aid to meet the standards for response to a structure fire. This new auto aid with New Brighton will not change our staffing levels and will provide better coverage for our Fridley community. We are not anticipating a large effect on the number of fire calls either Fridley or New Brighton will respond 9 FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13, 2018 PAGE 10 to in the future. This auto-aid agreement with New Brighton will go into effect on January 1, 2019. Staff recommends Council's approval. MOTION by Councilmember Barnette to adopt Resolution No. 2018-57. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 14. Approve Traffic Control Signal Agreement Between the State of Minnesota Department of Transportation and the City of Fridley and Anoka for the East River Road Traffic Control Signal Replacement (Ward 3). Jim Kosluchar, Public Works Director, stated that MnDOT has programmed replacement of the signal at the 694 Exit Ramp for East River Road for 2019. The existing signal is nearing 42 years old (reconstructed in 1977) and is due for replacement before it becomes unreliable or maintenance costs become prohibitive. The proposed project includes several upgrades to the traffic signal system. MnDOT has requested the City of Fridley approve the signal agreement. Maintenance responsibilities for the signals would remain the same as in the existing signal agreement. MnDOT is responsible for operation and major maintenance and the City is responsible for minor signal maintenance and luminaire maintenance, along with power costs. Mr. Kosluchar said the standard cost share agreement for reconstruction of these signals is 50% local and 50% MnDOT. The local share of the project would be split between the City of Fridley and Anoka County. In our historic cost-share agreement with Anoka County, the City and County would share equally in the local cost of this reconstruction (each paying just over $125,000). However, staff has been working with the Anoka County Highway Department to revise and balance this agreement. The result will be that the City of Fridley will share in providing the cost of the Emergency Vehicle Pre-emption (EVP) system serving our first responders, and half of any pedestrian-related improvements. This will mean that the City will provide $18,805.50, while Anoka County will provide $232,321.50 for this project. MnDOT will provide a matching amount of$251,127.00 for the project. Mr. Kosluchar said staff has been notified that its Municipal State Aid System (MSAS) fund advance request has been approved. This will allow the City to use its 2019 MSAS funds to complete its portion of the project. Staff recommends the City Council adopt the attached resolutions. If adopted, staff will notify MnDOT and Anoka County of the approval, and MnDOT will set a bid letting date for the project. Councilmember Bolkcom noted that this is excellent work and a huge savings. She commended staff for their work. Wally Wysopal, City Manager, said that this is a way staff saved $107,000 that otherwise would have been passed through and now this can be spent in other ways. 10 FRIDLEY CITY COUNCIL MEETING OF NOVEMBER 13,2018 PAGE 11 MOTION by Councilmember Bolkcom to adopt Resolution No. 2018-58 Resolution Approving Agreement with the State of Minnesota Department of Transportation for Replacement of the Existing Traffic Control Signal at Interstate 694 and East River Road and to adopt Resolution No. 2018-59 Resolution Requesting Municipal State Aid System Construction Funds for Construction of a Traffic Control Signal System at Interstate 694 and East River Road. Seconded by Councilmember Barnette. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY. 15. Informal Status Reports. Mayor Lund encouraged people to come to the new Civic Campus open house and dedication on Saturday,November 17 at 10 am. Councilmember Bolkcom thanked all the citizens for this new beautiful building. Council and staff are proud of this facility and look forward to the continued development in the surrounding area. ADJOURN: MOTION by Councilmember Barnette to adjourn. Seconded by Councilmember Varichak. UPON A VOICE VOTE, ALL VOTING AYE, MAYOR LUND DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 8:40 P.M. Respectfully submitted, Krista Peterson Scott J. Lund Recording Secretary Mayor 11 iI"IIIIIV AGENDA ITEM `ifl CITY COUNCIL MEETING OF Fridley NOVEMBER 26, 2018 To: Walter T. Wysopal, City Manager`e1' From: Deborah Dahl,Director of Community Services and Employee Resources Date: Nov. 15,2018 Re: Second Reading of an Ordinance Amending Fridley City Code Chapter 3 Entitled Personnel BACKGROUND As you know, every organization must determine their operating policies and procedures. Since its early formation, the City established a Code and adopted Chapter 3 of the City Code to address Personnel policies. Chapter 3 has had numerous revisions over the years and has not been as comprehensive or flexible with the ever-changing laws, needs of the organization, or best practices. Organizations evolve over time and must keep pace with regulations, labor contracts, organizational vision, budget and general operating strategies. In order to adjust to frequent changes and carry out the City's vision and to remain competitive in the market for hiring and retaining staff, the organization needs the flexibility to adapt to and anticipate change with its philosophies, policies and procedures. Changing Fridley's Personnel Ordinance or even making minor changes requires a lengthy process, including review and education, public meetings, etc. In addition, the original City's Personnel Ordinance interlocks benefits and policies, which can be difficult to change or keep pace with the market, adjust with trends and/or comply with legal changes. The City's Employee Handbook was developed and revised in 1999 by then Director Sara Hill, which attempted to address key policies and contemporary procedures in a simplified format. Over the years, the Handbook did not adequately replace the Personnel Ordinance and while was seen as an improvement, it continued to lack the necessary policies, flexibility, and clear guidance for employees and supervisors. In addition, our research has also revealed that our model is antiquated and not patterned by other cities. Cities most often provide a global governance statement that provide authorization to the City Manager and/or Administrator to develop, revise and execute personnel policies and procedures. The Need Staff has identified two immediate needs: 1) to amend Chapter 3 of the Fridley City Code to provide authority and flexibility to the City Manager to make changes to personnel policies going forward; and 2) to adopt a resolution amending the City's policy on benefits for city-paid holidays and amending the annual leave cap for non-union employees. 12 Increase in City Paid Holiday for Non-Union Employees Staff has proposed to increase the city-paid holiday from eleven (11) to twelve (12) days for 2018 and designate Dec. 31, 2018 as a city-paid holiday for non-union employees. In 2019, it is proposed that this 12th holiday be a floating holiday going forward each year thereafter. Adding this benefit will provide equity to non-union employees and line up with those granted to the unions in 2017. Increase in Annual Leave Cap for Non-Union Employees Staff is requesting the annual leave cap be raised from 280 to 320 hours (a total of forty hours)to be consistent with union contracts granted in 2017. This request is also helpful since a number of employees are currently at their cap and are often unable to use their time, particularly since there are a number of year-end priorities related to moving the new Civic Campus. The cost for both proposals would not increase the current budget or the budget in 2019. Regardless how time is recorded (annual leave, holidays, bereavement leave, etc.), the City budgets 2080 hours for each employee. It is presumed that the additional holiday could result in a loss of productivity, however, given Dec. 31, 2018 falls on a Monday this year, it is expected a number of staff will request to take annual leave for that day anyway. In terms of increasing the annual leave cap, the City is required maintain the liability (carry forward on its books) for annual leave if unused. While it is hard to predict when the additional forty hours would be used, it could also be held until the employee separates employment or retires. Again, the bigger priority for both of these requests are to bring the same benefits for non-union employees as those already provided to union groups since 2017. Personnel Policy Over the comings months, staff will be reviewing the current policies and practices, proposing amendments and creating new policies and to make rules and regulations for employment. The current language in the Employee Handbook, Summary of Benefits, department policies/procedures and CBA's will remain in effect until superseded or replaced by either a new comprehensive policy manual and/or CBAs, etc. Staff will continue to provide Council with the new policy manual as well as any changes or amendments. RECOMMENDATION 1. A motion waiving the second reading and ordering the adoption of an Ordinance Amending Fridley City Code Chapter 3 Entitled Personnel, as shown in Attachment 1. 2. A motion approving Summary Publication of an Ordinance Amending Fridley City Code Chapter 3 Entitled Personnel, as shown in Attachment 2. 3. A motion approving a Resolution Providing the Authority to the City Manager to Formulate and Execute Administrative Policies, Rules and Regulations for Employment, and Approving Non-Union Employee Paid Holiday and Annual Leave Cap, is shown in Attachment 3. 13 Attachment 1 ORDINANCE NO. AN ORDINANCE AMENDING THE CITY CODE OF THE CITY OF FRIDLEY, MINNESOTA, BY REPEALING CHAPTER 3 ENTITLED "PERSONNEL" IN ITS ENTIRETY AND ADOPTING A NEW CHAPTER 3 ENTITLED "PERSONNEL" The Fridley City Council hereby finds after review, examination and recommendation of staff that Chapter 3 related to Personnel be hereby amended and ordains as follows: SECTION 1: That Chapter 3 Entitled"Personnel" is hereby repealed in its entirety. SECTION 2: That Chapter 3 Entitled"Personnel" is hereby adopted as follows: CHAPTER 3. PERSONNEL 3.01. PURPOSE The purpose of the City's formal personnel policies are to establish standards, conditions and regulations of work and pay in City employment within the City of Fridley, to be applicable to all non-union employees of the City. (Ref.182, 636, 985) 3.02. ADMINISTRATION OF POLICIES The City Manager shall have the power to formulate and execute such administrative policies and to make rules and regulations for the employment of full-time, temporary/seasonal, part- time, paid, on-call firefighters, and contract employees, as well as consultants and independent contractors for services. Such administrative policies, rules, and regulations shall apply to all City employees unless there is a specific provision to the contrary in this Chapter or in a collective bargaining agreement entered into by the City. The administrative policies shall provide for verification and investigation of facts set forth in employment applications, including examination of criminal and traffic records. (Ref. 1007) The City Manager, or respective Department Manager, shall have the power to update these policies at his/her discretion so long as any changes are in compliance with any relevant federal or state laws, rules and regulations, or other guidelines. The City Manager shall effectively communicate any changes in policy to the City Council and City employees. Future significant personnel-related contracts and renewals must be approved by Council. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 26TH DAY OF NOVEMBER 2018. SCOTT J. LUND - MAYOR DEBRA A. SKOGEN— CITY CLERK First Reading: November 13, 2018 Second Reading: November 26, 2018 Publication: December 7, 2018 14 Attachment 2 SUMMARY ORDINANCE NO. AN ORDINANCE AMENDING FRIDLEY CITY CODE CHAPTER 3 ENTITLED PERSONNEL I. Title. An Ordinance of the City of Fridley, Minnesota, amending Fridley City Code Chapter 3 entitled Personnel. II. Summary. The City Council of the City of Fridley does hereby ordain as follows: That Chapter 3 of the Fridley City Code be hereby amended to allow the City Manager to establish standards, conditions and regulations of work and pay in City employment within the City of Fridley. III. Notice. This title and summary has been published to clearly inform the public of the intent and effect of the Fridley City Code. A copy of the ordinance, in its entirety, is available for inspection by any person during regular business hours at the offices of the City Clerk of the City of Fridley, 7071 University Ave NE, Fridley, Minnesota. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 26TH DAY OF NOVEMBER 2018. Scott J. Lund, Mayor ATTEST: Debra A. Skogen, City Clerk First Reading: November 13, 2018 Second Reading: November 26, 2018 Publication Date: December 7, 2018 15 Attachment 3 RESOLUTION NO. 2018 - RESOLUTION PROVIDING THE AUTHORITY TO THE CITY MANAGER TO FORMULATE AND EXECUTE ADMINISTRATIVE POLICIES,RULES AND REGULATIONS FOR EMPLOYMENT AND APPROVING NON-UNION EMPLOYEE PAID HOLIDAY AND ANNUAL LEAVE CAP WHEREAS, in 2014, the City of Fridley established the Vision Statement "We believe Fridley is a safe,vibrant, friendly and stable home for families and businesses;"and, WHEREAS, in support of the 2014 Vision Statement, Fridley's leadership comprised of the City Manager, Department Managers and Supervisors/Managers adopted a set of core operating principles and values whereby the workforce strives to be "responsive, driven and friendly;"and, WHEREAS, it is a widely known best practice for organizations (both public,private and non-profit sectors) to establish and maintain personnel policies and procedures to serve as guidelines and standards to manage its workforce; and, WHEREAS, personnel policies help to define the rules, requirements, benefits, and opportunities are often viewed as a reflection of an organization's vision,goals, and values; and, WHEREAS, developing clearly written policies and procedures that are documented, updated, and followed brings structure to an organization and assists in the day-to-day decision-making processes; and, WHEREAS, it is recognized that personnel policies, standards and regulations are frequently impacted due regular and frequent changes driven by complex federal, state, local regulations, changes in legislature, changes in budget, benefits, workforce demands, union negotiations, litigation, etc.; and, WHEREAS, it is necessary for an organization to anticipate and adapt to changes in order to be successful and to remain competitive; and, WHEREAS, policies and procedures need to be adaptable to the needs of the organization and enforced across the organization consistently; and, WHEREAS, policies and procedures also serve as an internal control method so managers and employees cannot take free license to make creative or unauthorized decisions; and, WHEREAS, the City of Fridley's current Personnel Policies — Personnel Ordinance, Chapter 3 in its current form is antiquated, duplicative, and restrictive; and, WHEREAS, City staff has reviewed and researched best practices and contemporary policies, rules and standards for municipalities; and, WHEREAS, City staff have determined that the current policies, standards and rules warrant significant revisions to bring them up-to-date with modern and contemporary business practices; and, 16 Attachment 2 WHEREAS, City staff researched that it appears to be a common practice in local government charter cities for the authority and control of personnel policies to reside with a City Manager/Administrator; and, WHEREAS, in 2016, the Charter Commission recommended a revision to Chapter 6.02 of the Charter granting the City Manager control and direct the administration of the City's affairs subject to the provisions of the Charter; and, WHEREAS, the City Council adopted the revision to its Charter on February 22, 2016, to grant the City Manager control and direct the administration of the City's affairs subject to the provisions of the Charter; and, WHEREAS, it is the intent for the City Manager and Department managers to develop, revise, administer and maintain the personnel policies and effectively communicate and future changes to the policies to Council and City employees; and WHEREAS, the personnel policies, standards and procedures will comply with the powers and directives and duties identified in Chapter 6.02 of the City Code; and, NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Fridley gives the authority to the City Manager to formulate and execute administrative polices, rules and regulations for employment; and BE FURTHER RESOLVED, that the City Council of the City of Fridley hereby approves the paid holiday leave and annual leave cap employee benefits for non-union employees. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 26TH DAY OF NOVEMBER 2018. SCOTT J. LUND -MAYOR ATTEST: DEBRA A. SKOGEN - CITY CLERK 17 I-1 AGENDA ITEM ndley CITY COUNCIL MEETING OF NOVEMBER 26, 2018 Date: November 14, 2018 To: Walter Wysopal, City Managejdr, From: Scott Hickok, Community Development Director Julie Jones, Planning Manager Rachel Workin, Environmental Planner Subject: City of Fridley Energy Action Plan BACKGROUND As part of the 2040 Comprehensive Planning Process, the City was required to incorporate resiliency into its Comprehensive Plan. As a result, the current draft comprehensive plan recommends that the City take specific actions to reduce the City's contribution to greenhouse gas emissions. Furthermore, "adopting climate mitigation and/or energy independence goals and objectives"is a GreenStep Cities best practice. In order to develop strategic energy goals, the City applied, and was accepted into, Xcel Energy's Partners in Energy offering. This offering is a two-year program designed to assist cities in developing and implementing energy action plans which reflect their unique energy needs and priorities. In March, 2018 the City signed a Memorandum of Understanding to begin the planning phase of the energy plan. The City formed an Energy Action team comprised of Fridley residents, business, and institutions. The Energy Action Team was guided through a series of five workshops by Partners in Energy community facilitators to develop Fridley's Energy Action Plan. Following adoption of the Plan, Xcel Energy will provide the City with targeted implementation support for 18 months. This support will include 1)marketing and promotional materials 2) data tracking 3)program expertise and 4)project management. The Energy Action Plan is anchored in the attached Energy, Mission, Vision and Goals and was recommended for adoption by the Environmental Quality and Energy Commission and Planning Commission. The goals of the City's energy plan will result in a combined energy savings of over $3 million citywide by 2020 and a 30%reduction in greenhouse gas emissions by 2030. RECOMMENDATION Staff recommends that Council approve the Energy Action Plan (summary included in attachment 1). 18 N IN ENEMY An Xxel Energy Community Colla4�oratton MIMI Fridley Our Vision Fridley will continue leading by example and engaging residents,businesses,and institutions to save money and reduce greenhouse gas emissions; for the benefit of everyone in the community. Our Energy Mission Fridley will continue improving upon its values of being a safe, vibrant, friendly and stable home for families and businesses by: 1. Increasing sustainable,reliable energy in the grid; 2. Strengthening energy efficient practices and participation; and 3. Supporting innovative strategies and technologies to achieve Fridley's energy vision. Goals' Community-wide: • Reduce energy use 5%by 2020, and 20%by 2030, as compared to business as usual Residential Energy: • By 2020, Fridley residents will take 1,200 additional actions toward energy conservation and renewable energy • By 2030, residents will reduce total energy use 10 percent, as compared to business as usual Businesses and Multifamily Buildings: • By 2020, businesses and multifamily buildings will achieve 5%energy savings • By 2030, businesses and multifamily buildings will reduce total energy use 20%as compared to business as usual Institutions: • By 2020, institutions will achieve 5% energy savings • By 2030, institutions will reduce total energy use 15% as compared to business as usual Transportation and Electric Vehicles: • By 2020,the City will reach 500 residents and employees through an outreach campaign to raise awareness about electric vehicles • By 2020, the City will reach 10 businesses and multifamily buildings through a targeted outreach campaign to encourage installation of charging infrastructure • By 2020,the City will install 1 electric vehicle charging station at a city-owned building or location 1 The business as usual scenario represents a presumed slight increase in energy demand based on residential and commercial energy demand of about 0.5 percent per year. It is assumed institutions demand will increase in 2019 when the new civic campus opens, but stay relatively flat in future years. 19 s AGENDA ITEM � CITY COUNCIL MEETING OF Fridley NOVEMBER 26, 2018 Date: November 20, 2018 To: Walter T. Wysopal, City Manager From: Scott Hickok, Community Development Director Jim Kosluchar, City Engineer, Public Works Director Subject: Crown Castle/City of Fridley Amendment to Tower Lease Agreement INTRODUCTION In order to build a replacement to its former Public Works building, at 400 71st Avenue NE, Fridley MN.The City was required to move the existing cell tower from its site and move it to a new location adjacent to 71st Avenue NE,generally between the new fire apparatus bays and the new public works facility.A 50'x 50' parcel has been defined for lease purposes. In order to bring the lease current with all the site and tower changes that were necessary and amendment to the original August 25, 2003 lease agreement was required. Attorney Karlovich worked with City staff and negotiated the terms of the agreement with counsel for Crown Castle, consistent with the desires of the City and in conformance with tenant requirements. ELEMENTS This is an amendment by and between The City of Fridley, and (Crown Castle on behalf of) NCWPCS MPL 31 — YEAR SITES TOWER HOLDINGS LLC, a Delaware limited liability company, and successor in interest to AT&T Wireless Services. In very simple terms, this amendment allowed a new description of the parcel that is the new cell tower location adjacent to the Civic Campus (Exhibit B). It also provides a new access and utility easement description to allow the tenant access (Exhibit C). Finally, this agreement provides a new Torrens Certificate (Exhibit A), which is essential on Torrens property to properly identify and file the location of the tower and associated property with the Anoka County Recorder's office. The Torrens Certificate has been prescribed through the essential Anoka County Court process to describe Torrens property. The attorneys for the parties have negotiated an amendment to the original lease that is clearly defined and includes acceptable terms to all interested parties. RECOMMENDATION Staff recommends approval of the attached amendment to the Lease agreement between The City of Fridley, and NCWPCS MPL 31 — YEAR SITES TOWER HOLDINGS LLC, a Delaware limited liability company, and successor in interest to AT&T Wireless Services. 20 FIRST AMENDMENT TO TOWER SITE LEASE AGREEMENT THIS FIRST AMENDMENT TO TOWER SITE LEASE AGREEMENT (the "First Amendment") is dated as of , 2018, by and between THE CITY OF FRIDLEY, a Minnesota municipal corporation (hereinafter "Landlord") with an address of 6431 University Avenue NE, Fridley, Minnesota 55432 and NCWPCS MPL 31 — YEAR SITES TOWER HOLDINGS LLC, a Delaware limited liability company, successor in interest to AT&T Wireless Services of Minnesota, Inc., a Nevada corporation (hereinafter "Tenant"), by CCATT LLC, its Attorney in Fact (hereinafter "CCATT"), having a place of business at 2000 Corporate Drive, Canonsburg,Pennsylvania 15317. WITNESSETH: A. Landlord and Tenant are parties to that Tower Site Lease Agreement dated August 25, 2003 ("Tower Site Lease Agreement") for the lease of a portion (the "Original Leased Premises") of certain property owned by the City("Original Property") for the installation and operation of a communications tower, guyed lines and lights, as well as other equipment ("Original Communications Facility") more specifically set forth in the Tower Site Lease. B. The Tower Site Lease Agreement granted the Tenant an easement for access ("Original Access Easement") as well as a utility easement ("Original Utility Easement"). C. Landlord is developing the Original Property and Tenant's use of the Original Leased Premises and the Original Communications Facility conflicts with Landlord's development. D. Landlord is the owner of property legally described on the attached Exhibit A ("New Property"). E. Landlord and Tenant, and subtenants have executed a Tower Relocation Agreement pursuant to which the Original Communications Facility has been removed and a new Communications Facility (the "New Communications Facility") has been relocated to a portion of the New Property and which is legally described on the attached Exhibit B ("New Leased Premises"), and the Access Easement and Utility Easement have 1 21 been relocated to a portion of the New Property and which is legally described on the attached Exhibit C ("New Access and Utility Easement"). F. Landlord and Tenant desire and agree to amend the existing Tower Site Lease Agreement to reflect the rental of the New Leased Premises on the New Property, the use of the New Access and Utility Easement, and to establish the effective date for the said modifications to the Tower Site Lease Agreement. NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. All capitalized terms, not otherwise separately defined herein, shall have the meanings ascribed to them in the Tower Site Lease Agreement. 2. The effective date ("Effective Date") of this First Amendment shall be 3. As of the Effective Date of this First Amendment, Landlord hereby leases to Tenant the New Leased Premises legally described on the attached Exhibit B, and grants to Tenant the New Access and Utility Easement, legally described on the attached Exhibit C. 4. As of the Effective Date of this First Amendment, Landlord hereby contemporaneously terminates the lease of the Original Leased Premises, and the Original Access Easement and the Original Utility Easement identified and legally described on Exhibits B, C and D of the Tower Site Lease Agreement, respectively. The New Leased Premises, New Access and Utility Easement shall be subject to the same terms of the Tower Site Lease Agreement, except as said terms are amended by this First Amendment. 5. All terms and conditions of the Tower Site Lease Agreement remain in full force and effect to the extent not amended by this First Amendment. 6. This First Amendment may be executed in any number of counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument. 2 22 IN WITNESS WHEREOF, the parties have executed this First Amendment as of the day and year first above written. LANDLORD: CITY OF FRIDLEY, a Minnesota municipal corporation By Scott Lund, Mayor By Walter Wysopal, City Manager STATE OF MINNESOTA ) ss. COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this day of , 2018, by Scott Lund and Walter Wysopal, the Mayor and City Manager of the City of Fridley, a Minnesota municipal corporation, on behalf of the municipal corporation, and that the seal affixed to this instrument was signed and sealed on behalf of said municipal corporation by authority of its City Council and said Mayor and City Manager acknowledged said instrument to be the free act and deed of said municipal corporation. Notary Public 3 23 TENANT: NCWPCS MPL 31 —YEAR SITES TOWER HOLDINGS LLC, a Delaware limited liability company By: CCATT LLC, a Delaware limited liability company, its Attorney in Fact By: Name: Title: Date: STATE OF ) ss. COUNTY OF ) On this day of , 2018,before me a Notary Public within and for said County, personally appeared to me personally known, who being by me duly sworn, did say that he/she is the of CCATT LLC, a Delaware limited liability company as Attorney-In-Fact for NCWPCS MPL 31 — YEAR SITES TOWER HOLDINGS LLC, a Delaware limited liability company, pursuant to that Limited Power of Attorney dated November 25,2013. Notary Public 4 24 EXHIBIT A(NEW PROPERTY) (TORRENS CERTIFICATE OF TITLE NO. 138838) SITUATED IN THE COUNTY OF ANOKA, STATE OF MINNESOTA: LOT 1, BLOCK 1, AND OUTLOTS B.AND D, LOCKE PARKE POINTE. SUBJECT TO DRAINAGE AND UTILITY EASEMENTS AS SHOWN ON PLAT, LOCKE PARKE POINTE, RECORDED AS DOCUMENT NO. 549318.01 ON JUNE 19, 2017. SUBJECT TO A PERPETUAL EASEMENT HELD BY THE CITY OF SAINT PAUL AND BOARD OF WATER COMMISSIONERS OF THE CITY OF SAINT PAUL TO DIVERT, TAKE AND DRAW WATER FROM LAKE BALDWIN IN THE COUNTY OF ANOKA, STATE OF MINNESOTA TO SUPPLY THE INHABITANTS OF THE CITY OF SAINT PAUL. SUBJECT TO THE RESTRICTION AS CONTAINED IN DOC. #43029 THAT AT NO TIME WILL THE GRANTEE MAKE USE OF THE PREMISES OR ALLOW THE USE OF THE PREMISES AS A PLACE FOR THE SALE OF OR CONSUMPTION OF INTOXICATING BEVERAGES. 5 25 EXHIBIT B(NEW LEASED PREMISES) THAT PART OF LOT 1, BLOCK 1, LOCKE PARK POINT, ANOKA COUNTY, MINNESOTA, DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID LOT 1, THENCE NORTH 89 DEGREES 49 MINUTES 40 SECONDS WEST, ALONG THE NORTH LINE OF SAID LOT 1, A DISTANCE OF 613.40 FEET; THENCE SOUTH 00 DEGREES 10 MINUTES 20 SECONDS WEST, 10.00 FEET TO THE POINT OF BEGINNING OF THE LEASE AREA TO BE DESCRIBED; THENCE SOUTH 00 DEGREES 10 MINUTES 20 SECONDS WEST, 50.00 FEET; THENCE NORTH 89 DEGREES 49 MINUTES 40 SECONDS WEST, 50.00 FEET; THENCE NORTH 00 DEGREES 10 MINUTES 20 SECONDS EAST, 50.00 FEET; THENCE SOUTH 89 DEGREES 49 MINUTES 40 SECONDS EAST, 50.00 FEET TO THE POINT OF BEGINNING AND TERMINATING THEREAT. CONTAINING 2,500 SQUARE FEET (0.06 ACRES) MORE OR LESS. 6 26 EXHIBIT C (NEW ACCESS AND UTILITY EASEMENT) A NON-EXCLUSIVE 20.00 FOOT WIDE EASEMENT FOR ACCESS AND UTILITY PURPOSES OVER, UNDER AND ACROSS THAT PART OF LOT 1, BLOCK 1, LOCKE PARK POINT, ANOKA COUNTY, MINNESOTA, BEING 10 FEET ON EITHER SIDE OF THE CENTERLINE DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID LOT 1, THENCE NORTH 89 DEGREES 49 MINUTES 40 SECONDS WEST, ALONG THE NORTH LINE OF SAID LOT 1, A DISTANCE OF 613.40 FEET; THENCE SOUTH 00 DEGREES 10 MINUTES 20 SECONDS WEST, 40.00 FEET TO THE POINT OF BEGINNING OF THE CENTERLINE TO BE DESCRIBED; THENCE SOUTH 89 DEGREES 49 MINUTES 40 SECONDS EAST, 30.82 FEET TO A POINT HEREINAFTER REFERRED TO AS POINT "A"; THENCE CONTINUE SOUTH 89 DEGREES 49 MINUTES 40 SECONDS EAST, 37.00 FEET; THENCE NORTH 00 DEGREES 10 MINUTES 20 SECONDS EAST, 40.00 FEET TO THE SOUTH RIGHT OF WAY LINE OF 71ST AVENUE NORTHEAST AND TERMINATING THEREAT. TOGETHER WITH A NON-EXCLUSIVE 20.00 FOOT WIDE EASEMENT FOR ACCESS AND UTILITY PURPOSES OVER, UNDER AND ACROSS THAT PART OF LOT 1, BLOCK 1, LOCKE PARK POINT, ANOKA COUNTY, MINNESOTA, BEING 10 FEET ON EITHER SIDE OF THE CENTERLINE DESCRIBED AS FOLLOWS: FROM "POINT A" DESCRIBED ABOVE; THENCE SOUTH 00 DEGREES 10 MINUTES 20 SECONDS WEST A DISTANCE OF 30.00 FEET AND TERMINATING THEREAT. NOTE: THE SIDELINES OF THE ABOVE DESCRIBED EASEMENT ARE TO BE SHORTENED AND/OR EXTENDED TO TERMINATE AT THE SOUTH RIGHT OF WAY LINE OF 71ST AVENUE NORTHEAST. 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N N N N m m m 0 0 .7 v N m N N N N N N N N N N N O a a a 00 V COON n n n N r n N n N n W N 00 IN. • 0 0 a N N N N N N N N N N N N N N Z N N C In C V1 C V1 VI V1 V1 h0 - N m ff N N O o O 0 0 0 O o O O N N 0 0 CO 0 N N u C o E � V 51 ` CITY COUNCIL MEETING OF Fridley November 26, 2018 To: Walter T. Wysopal City Managera,/ From: Scott Hickok Community Development Director Brian Weierke Public Safety Director Pat Wolfe Rental Division Manager Jeff Guest Lieutenant Fridley Police Department Date: November 19, 2018 Re: Public Hearing and First Reading of an Ordinance for Text Amendments for Chapter 220 Introduction A text amendment is being proposed for Chapter 220 of the Residential Property Maintenance and Licensing Code. The text amendment being proposed will update, revise and add language to the existing code previously written in 1993. The existing version is still used, with the majority of the ordinance staying in effect. Elements During the September 24, 2018 City Council pre meeting, Chief Weierke presented the Mayor and Councilmembers an overview of the most significant additions pertaining to Chapter 220.14 Conduct on Licensed Premises. Chief Weierke assigned his department staff to perform research to determine how the City of Fridley's rental codes compared to surrounding cities, mainly in regard to the Conduct Section of the Code. It was determined by staff the code was outdated. To bring the current code more in line with other cities, Scott Hickok and Chief Weierke started a Rental Housing Initiative to include Community Development, Police and Fire. The three departments have reviewed and revised Chapter 220. The Public Hearing notice was published in the November 16, 2018 edition of the Sun Focus. Recommendation Staff recommends Council hold the Public Hearing and adopt the first reading of the attached ordinance. Attachment 52 CITY OF FRIDLEY ANOKA COUNTY,MINNESOTA ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 220 OF THE FRIDLEY CITY CODE RELATED TO THE RESIDENTIAL RENTAL PROPERTY MAINTENANCE AND LICENSING CODE (Ref. No.213,222,286,673,747, 1033, 1213, 1337) THE CITY OF FRIDLEY DOES ORDAIN: Section One.Amendment. Chapter 220 of the Fridley City Code is amended as follows. The underlined text shows the proposed additions to the City Code and the strut text shows the deleted wording: CHAPTER 220. RESIDENTIAL RENTAL PROPERTY MAINTENANCE AND LICENSING CODE 220.01. TITLE This Chapter shall be referred to as the "Residential Rental Property Maintenance and Licensing Code". 220.02. PREAMBLE The City believes that providing for public health, safety, and welfare to its citizens mandates the existence of a rental property licensing and maintenance program which corrects substandard conditions and maintains a standard for rental property. 220.03. SCOPE Except as provided herein, Tthis Chapter applies to all buildings which are rented in whole or in part as a dwelling for persons other than the property owner_'s "family" as defined therein. It includes accessory-structures such as garages and storage buildings, and appurtenances such as sidewalks and retaining walls, which are on the lot where the rental property is located. This --- - __ . . -- --- - - - • -- - - 220.04. PURPOSE This Chapter establishes licensing, inspection and maintenance requirements for property rented as dwelling unitsrental dwellings. 1 53 220.05. DISCRIMINATION AND PRIVATE CONTRACTS This Ordinance shall be enforced in a non-discriminatory manner and exclusively for the purposes of promoting public health. safety and welfare. The City neither expressly nor by implication assumes any obligations or liabilities respecting such private rights or disputes, including those which involve or arise out of the non-conformity of any premises in the City to the provisions of this Ordinance. Nothing in this Ordinance precludes a Licensee from entering into a contract for the maintenance, repair, or management of a rental dwelling; in such cases, however, Licensee will still be held responsible to ensure the condition of the property conforms with this Chapter. 220.06. DEFINITIONS For the purpose of this Chapter, certain terms and words are defined. Words not specifically defined in this Chapter shall have their ordinary meanings within the context with which they are used. The referenced dictionary of the governing Building Code shall be considered as providing ordinarily accepted meanings. Whenever the words "Dwellings", "Dwelling Unit", "Building", "Structure", or "Premises" are used in this Chapter, they shall be construed as though they were followed by the words, "or any part thereof'. The following words, terms, and phrases and their derivatives shall be construed as defined in this section; words used in the singular include the plural and the singular; words used in the masculine gender include the feminine and vice versa. 1. Accessory 4-.,.,4e+, Sty U t :e or Use. A subordinate building or use which is located on the same lot as principal building or use and is necessary or incidental to the conduct of the principal building or use. 2. Approved. Approved as to construction, installation, and maintenance in accordance with all applicable codes and state statutes. 3. Basement. That portion of a building between floor and ceiling which is partly below grade, but so located that the vertical distance from grade to floor below is more than the vertical distance from grade to ceiling. 4. Bedroom. A habitable room within a dwelling unit which is used, or intended to be used, primarily for the 2 54 purpose of sleeping, but shall not include any kitchen or dining area. 5 Building. Any structure having walls and a roof, built for the shelter or enclosure of persons, animals, or property of any kind. 6. Clean. The absence of rubbish, garbage,vermin, and other unsightly, offensive, or extraneous matter. 7. Compliance Official. The designated authority charged with the administration and enforcement of this code, or his/her duly authorized representative. 8. Condominium. A multiple dwell ingbuilding containing multiple dwellings in which portions are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners of those portions. A building containing multiple dwellings is not a condominium unless the undivided interests in the common elements are vested in the unit owners. 9. Dwelling. • - . ' . - .. •- - - - - - . • - . - .. . -. . . -- - . - . - , .. . ., .A building or one or more portions of a building occupied or intended to be occupied for residential purposes. 10. Dwelling, Multiple. living independently of each other.A building or one or more portions of a building occupied or intended to be occupied for residential purposes by two (2) or more families living independently of each other. 11. Dwelling, One-Family. A detached building designed exclusively for occupancy by one (1) family. 12. Dwelling, Two-Family. A detached building designed exclusively for occupancy by two (2) families living independently of each other. • 13. Dwelling Unit. 3 55 A single unit providing complete independent living facilities for one (1) or more persons including permanent provisions for living, sleeping, eating, cooking, and sanitation. 14. Easily Cleanable. Readily accessible and of such material and finish, and so fabricated and placed that residue which may accumulate can be completely removed by normal cleaning methods. 15. Electrical System. Any and all methods of transmitting electricity to and within any dwelling or dwelling unit. 16. Exit. A continuous and unobstructed means of egress to a public way and shall include intervening doors, doorways, corridors, ramps, stairways, smoke-proof enclosures, horizontal exits, exit passageways, exit courts, and yards. 17. Extermination. The control and elimination of insects, rodents, or other pests by eliminating their harborage places; by removing or making inaccessible materials that may serve as their food; by poisoning, spraying, fumigating, or trapping, or by any other recognized or legal pest elimination methods approved. 18. Family. An individual or two (2) or more persons related by blood. marriage. or adoption. including family.An individual or two or more persons related by blood, marriage, or adoption, including foster children, in a linear relationship such as spouses. grandparents. parents. children, grandchildren and siblings. A B. A group of not more than five (5) persons not related by blood or marriage living together in a dwelling unit. • b•- . . - • • - - - - - - . - . .•-. • . . - family whether or not the total persons other than the live in staff or principal occupant exceeds five (5). 19. Floor Area, Gross. The sum of the gross horizontal area of the several floors of a structure or structures measured 4 56 from the exterior faces and exterior walls or from the center line of common walls separating dwelling units. Basements devoted to storage and/or off-street parking shall not be included. 20. Functioning. In such physical condition as to safely perform the service or services for which an item is designed or intended. 21. Governing Building Code. The applicable edition of the Minnesota State Building Code. 22. Habitable Room. A room or, enclosed floor space used or intended to be used for living, sleeping, cooking or eating purposes; excluding bathrooms, water closet compartments, laundries, furnace rooms, unfinished basements, pantries, utility rooms, foyers, communicating corridors, stairways, closets, storage spaces, and attics. 23. Heated Water. Heated water supplied to plumbing fixtures at a temperature of not less than 110 degrees Fahrenheit. 24. Heating, Ventilating and Air Conditioning Systems. Any and all units, equipment, material, and miscellaneous devices used in the process of heating, ventilating, and air conditioning of any dwelling or dwelling unit. 25. Infestation. The presence within or around a dwelling or dwelling unit of any insect, rodent, vermin or other pests. 26. International Building, Code (I.B.C.). Shall mean the code published by the International Code Council. Inc., and any materials referenced therein. 26.27.Kitchen. A habitable room within a dwelling unit intended to be used for the cooking of food or the preparation of meals. 28. 27. Let, Operate. or Rent. 5 57 To permit possession or occupancy of a dwelling or dwelling unit. whether or not compensation is paid. by a person who is not the legal owner of record thereof. pursuant to a written or unwritten lease. 27.29.Licensee. . .. - - ::-.The owner of property licensed as a rental dwelling pursuant to this Chapter. 230. Living Room. A habitable room within a dwelling unit which is intended to be used primarily for general living purposes. 29,31. Lodging House. Any building or portion thereof containing not more than five (5) guest rooms where rent is paid in money, goods, labor, or otherwise. 30.32. Maintenance. To keep in a good state of repair;to preserve from deterioration. 31. Multiple Occupancy. 32.33. Non-combustible. Any material or a combination of materials which complies with the current version of the nesota State Building Code, including the most recent adopted version of the International Building Code and International Residential Code incorporated therein by reference.rnost recent edition of the U.B.C. 33. 34.Non-resident Owner. An owner of a rental dwelling who does not reside or live in the rental dwelling. 31. 35.Nuisance. A nuisance shall be any act as defined in Chapter 110 of the City Code. 35. 36. Occupancy. The purpose for which a structure, or part thereof, is used or intended to be used. 6 58 36. 37. Occupant. Any person residing in a dwelling or dwelling unit. 37. Operate. As used in this Chapter. the term means to charge a fee or other form. of monetary compensation for the use of a unit in a rental dwelling or for the use of an accessory structure. 38. Operator, Manager, Caretaker, or Agent Any person who has charge, care or control of a structure, or part thereof, in which condominiums exist or rental dwelling units are let. 39. 39. Owner. Any person, firm, corporation, agent or condominium association who alone, jointly or severally with others . - • •• •. - -- - • - . - - - - dwelling. dwelling unit or condominium within the City having a legal or equitable interest in the property or recorded in the official state. county or city records has holding title to the property or othem ise having control of the property. . 49: 40. Person. A natural person. that person's heirs. executors. administrators or assigns. and also a firm. • aforesaid.An individual. corporation. firm. association, company. partnership. organization, or any other legal entity. 41. Plumbing System. All of the following supplied facilities and equipment in a dwelling: gas pipes, gas burning equipment, water pipes, steam pipes, garbage disposal units, waste pipes, water closets, sinks, installed dishwashers, lavatories, bathtubs, shower baths, installed clothes washing machines, catch basins, vents, and any other similar fixtures and the installation thereof, together with all connections of water, sewer, or gas lines. 42. Premises. A platted lot or portion thereof or an unplatted parcel of land and adjacent right-of-way either occupied or unoccupied by a building and/or accessory structure. 43. Property. All land and structures and systems therein, platted lots or parts thereof or an unplatted parcel of 7 59 land. 44. Proper Connection to an Approved Sewer System. A functioning sewer connection free from defects, leaks or obstructions with sufficient capacity to drain all fixtures or appliances which feed into it. The sewer system must be capable of disposing of sewage in a safe, sanitary, and adequate manner. Proper Connection to an Approved Water System. A functioning plumbing connection free from defects, leaks or obstructions providing a potable, controllable flow of water. ___Public Areas. Those areas which are normally used by or open to the general public, regardless of access restriction by a locked exterior door. Reasonable Care. The treatment of all facilities, fixtures, equipment, and structural elements such that depreciation of these objects and materials is due to their age and normal wear rather than due to neglect. 15. 48. Refuse. Any solid or liquid waste products or those having the character of solids rather than liquids in that they will not flow readily without additional liquid and which are composed wholly or partly of such materials as garbage, swill, sweepings, cleanings, trash, rubbish, litter, industrial solid wastes or domestic solid wastes, organic wastes or residue of animals sold as meat, fruit or other vegetable or animal matter from kitchens, dining rooms, markets, or food establishments of any places dealing in or handling meat, fowl, grain or vegetables; offal, animal excrete or the carcass of animals; tree or shrub trimmings; grass clippings, brick, plaster or other waste matter resulting from the demolition, alteration or construction of buildings or structures; accumulated waste materials, cans, containers, tires, junk; or other such substance which may become a nuisance. _:_ _Rental Dwelling or Rental Dwelling Unit. A dwelling or dwelling unit and accessory structure (if any) let for rent or lease. The term rental Repair. To restore to a sound and acceptable state of operation, serviceability or appearance in the determination of the City. 8 60 Retaining Wall. A wall or structure constructed of stone, concrete, wood, or other materials used to retain soil, as a slope transition, or edge of a planting area. Rodent Harborage. Any place where rodents live, nest or seek shelter. Rodent-Proof. A condition where a structure or any part thereof is protected from rodent infestation by eliminating ingress and egress openings such as cracks in walls and holes in screens. For the purpose of this ordinance, the term "rodent-proof' shall be construed as though it included "insect-proof' and "vermin-proof'. Safe. The condition of being free from danger and hazards which may cause accidents or disease. =_ Story. That portion of a building included between the upper surface of any floor and the upper surface of the next floor above it; if there is no floor above it, the space between the floor and the ceiling above it. A basement is a story for the purposes of height regulations if one-half(1/2) or more of the basement height is above the level of the adjoining ground. Structure. Anything constructed or erected which requires location on or under the ground or attached to something having location on or under the ground. 54. Uniform Building Code (U.B.C.). 55. 57. Unsafe. As applied to a structure, a condition or combination of conditions which are dangerous or hazardous to persons or property. 4( - Unsanitary. Conditions which are dangerous or hazardous to the health of persons. 9 61 57. 59. Use. The purpose for which land, a building, or structure is or is to be used or occupied, and shall include the performance of such activity as defined by the performance standards of this Chapter. 5s. 60, Water Closet. A toilet, with a bowl and trap made in one piece, which is connected to the City water and sewer system or other approved water supply and sewer system. 59 61. Yard. All ground, lawn, court, walk, driveway, or other open space constituting part of the same premises and on the same lot with a main building. 220.07. RESPONSIBILITY OF OWNERS The owner of a dwelling or dwelling unit shall be responsible for the maintenance of that structure and for meeting the provisions of this Chapter. Those responsibilities may not be abrogated by a private agreement. 220.08. JOINT RESPONSIBILITIES OF OCCUPANTS AND OWNERS 1. No owner, operator, or occupant of any dwelling unit shall allow the accumulation or formation of dirt, filth, refuse, or rodent harborages on the premises which the, occup or controlL in a manner that could create a health hazard to the dwelling occupants or the general public. 2. Nuisances: No owner, operator, or occupant of any dwelling unit shall allow the formation or presence of any nuisances in or about the premises he/she occupies or controls. 3. Conduct on licensed premises: Every owner, operator, or occupant of any dwelling unit shall conform to the provisions of Section 220.14 of this Chapter. 220.09. REMOVAL OF EQUIPMENT AND DISCONTINUANCE OF BASIC SERVICES No owner, operator, or occupant shall cause any service, utility, facility, or equipment which is required under this Chapter, to be removed from or shut off from any occupied dwelling or dwelling unit except for such temporary interruptions as may be necessary while actual repairs or alterations are in process or during temporary emergencies. 220.10. MINIMUM STANDARDS FOR PRINCIPAL STRUCTURES 10 62 1. Minimum Exterior Standards A. Foundations, exterior walls, and roofs: The foundation, exterior walls, and exterior roof shall be water tight, rodent proof, and shall be kept in sound condition and repair. Every window, exterior door, and hatchway shall be substantially tight and shall be kept in sound condition and repair. The foundation shall adequately support the building at all points. Exterior walls shall be maintained and kept free from dilapidation by cracks, tears, or breaks or from deteriorated plaster, stucco, brick, wood, or other material that is extensive and gives evidence of long neglect. The protective surface on exterior walls of a building above ground level shall be maintained in good repair so as to provide a sufficient covering and protection of the structural surface underneath against its deterioration. Without limiting the generality of this section, a protective surface of a building shall be deemed to be out of repair if: (1)The protective surface is paint which is blistered to an extent of more than twenty- five percent (25%) of the area of any plane or wall or other area including window trim, cornice members, porch railings, and other such areas; (2)More than ten percent (10%) of the pointing of any chimney or twenty-five percent (25%)of the pointing of any brick or stone wall is loose or has fallen out. (3)More than twenty-five percent (25%) of the finish coat of a stucco wall is worn through or chipped away. Any exterior surface or plane required to be repaired under the provisions of this section_ -shall be repaired in its entirety. If a weather resistant surface such as brick, plaster, or metal is covered with paint that is more than twenty-five percent(25%)blistered, it shall be repainted unless the defective paint covering is removed in its entirety. B. Accessory Structure Maintenance Accessory structures supplied by the owner, operator, or occupant on the premises of a dwelling shall be structurally sound, and be maintained in good repair and appearance. Exterior walls, foundations, roofs, and exits of an accessory structures shall be maintained in accordance with the standards set forth for principal structures. C. Fence Maintenance Fences shall be maintained in good condition both in appearance and in structure. Wood material, other than decay resistant varieties, shall be protected against decay by use of paint or other preservatives. If twenty-five percent (25%) or more of the painted surface of a fence is determined by the Compliance Official to be paint blistered, the surface shall be properly scraped and repainted. D. Retaining Walls 11 63 Retaining walls shall be kept in good condition, repair, and appearance. A retaining wall shall be deemed out of repair when it has substantially shifted or slumped out of its original design position. E. Yard Cover All exposed areas surrounding (or within) a principal or accessory use, including street boulevards which are not devoted to parking, drives, sidewalks, patios, or other such uses, shall be landscaped with grass, shrubs, trees, or other ornamental landscape material and shall be maintained to prevent erosion from wind and/or water runoff. Such landscaping shall be maintained in good condition and free of noxious weeds. Grass and weeds may not exceed ten (10) inches in height at any time. F. Gutters and Downspouts Existing gutters, leaders, and downspouts shall be maintained in good working condition as to provide proper drainage of storm water. In no case shall storm water be channeled into the sanitary sewer system. Neither shall storm water, ice, or snow be directed into, or channeled across walkways or streets where it is likely to be a hazard to life or health. G. Exterior Lighting For multiple family dwellings, all exterior parking areas shall be provided with an average, maintained, horizontal illumination of six-tenths (0.6) foot candles. Parking lot illumination shall not be directed onto a public street or adjoining property. H. Snow and Ice Removal The owner of a dwelling containing two (2) or more dwelling units shall be responsible for cleaning and maintaining all walks, drives, and parking areas, and keeping steps free of any ice or any snow accumulations of two or more inches within 24 hours of the storm's completion. I. Driving and Parking Areas The owner of a multiple family dwelling or dwellings shall be responsible for providing and maintaining in good condition paved and delineated parking areas and driveways for occupants consistent with the City Code. J. Facilities for Storage and Disposal of Refuse Every owner of a residential property shall be responsible for providing and maintaining facilities for the storage and disposal of refuse and for arranging for the collection of this material as required by the City Code. K. Grading and Drainage. 12 64 Every yard, court, or passageway on the premises on which a dwelling stands must be maintained in a way to prevent the excessive accumulation of standing water which constitutes a detriment to the health and safety of the occupants or the general public. 2. Minimum Plumbing Standards All plumbing in every dwelling unit and in all shared or public areas shall be properly installed and maintained in a sanitary, safe, and functioning condition, and shall be properly connected to an approved sanitary system. A. Every fixture, facility, or piece of equipment requiring a sewer connection shall have a functioning connection, free from defects, leaks, or obstructions, and shall possess sufficient capacity to drain all other fixtures, facilities, or pieces of equipment which feed into it. The sewer system must be capable of conveying all sewage into the municipal sanitary sewer system. B. Every fixture, facility, or piece of equipment requiring a water connection shall have a functioning connection, free from defects, leaks, or obstructions. Each water connection shall possess sufficient capacity to adequately supply all fixtures, facilities, or pieces of equipment to which connected with an uncontaminated, controllable flow of water. 3. Minimum Electrical Standards: Every dwelling unit and all public and areas shall be supplied with electric service, functioning and safe circuit breakers or fuses, electric outlets, and electric fixtures which are properly installed and maintained in a safe working condition. The minimum capacity of such electric service and the minimum number of electric outlets and fixtures shall be as follows: A. Dwellings containing one or two dwelling units shall have at least the equivalent of sixty (60) ampere, electric service per dwelling unit; B. Dwelling units shall have at least one fifteen (15) ampere branch electric circuit for each six hundred (600) square feet of dwelling unit floor area; C. Every habitable room shall have at least one floor or wall-type electric convenience outlet for each sixty (60) square feet or fraction thereof of total floor area, and in no case less than two such electric outlets. Temporary wiring, extension cords, or drop cords shall not be used as permanent wiring. In cases where more than two outlets are required, one ceiling or wall-type light fixture may be substituted for one required outlet. Required outlets shall, insofar as possible, be spaced equal distances apart; D. Every water closet compartment, bathroom, kitchen, laundry room, and furnace room shall contain at least one supplied ceiling or wall-type electric light fixture and every bathroom and laundry room shall contain at least one electric convenience outlet; E. Every public hall and stairway in every multiple family dwelling shall be adequately 13 65 lighted by natural or electric light at all times, so as to provide illumination having an intensity of not less than one foot candle at floor level to all parts thereof. The lights in the public hall and stairway of dwellings containing not more than two dwelling units may be controlled by conveniently located switches instead of full-time lighting; F. A convenient switch for turning on a light in each dwelling unit shall be located near the principal point of entrance to such unit. A patio door entrance may be exempt if it is not a principal entrance. G. If provided, exterior electrical outlets shall be weather proofed. No electrical drop cords, extension cords, or electrical wires shall extend across a walkway or driveway, or otherwise create a hazard to pedestrians or vehicles. 4. Minimum Heating Standards A. All dwellings shall have primary heating facilities which are properly installed and maintained in a safe, efficient working condition and which are capable of maintaining a minimum indoor temperature of not less than 68 degrees F at a point 3-feet above the floor during the period from October 15 through April 15, consistent with the Minnesota Cold Weather Rule.: at an outside temperature of 20 degrees F. at a point 3-feet 36 inches above the floor in all habitable rooms, bathrooms, and water closet compartments in every dwelling unit located therein. B. Gas or electric appliances designed specifically for cooking or water heating purposes, and portable heating equipment, shall not be considered primary heating facilities the meaning of this section.for the purposes of this Section. C. No owner or occupant shall install, operate, or use a heater employing a flame that is not installed and maintained in accordance with manufacturer's specifications and applicable City and State Codes. D. Whenever the occupant lacks direct control over the primary heating facility to his/her dwelling unit, it shall be the responsibility of the owner to maintain minimum heating standards as set forth above. 5. Water Heating Standards: Every dwelling unit shall have supplied water heating facilities which are installed in an approved manner, properly maintained, and which are capable of heating water to such a temperature as to permit an adequate amount of water to be drawn at every required kitchen sink, lavatory basin, bathtub, shower, and laundry facilities, or other similar units at a temperature of not less than one hundred ten degrees (110) Fahrenheit, forty- six degrees (46) Celsius, at any time needed. Water temperatures shall comply with but not exceed the standards stipulated in the most recently adopted Minnesota Energy Code. 6. Minimum Natural Light and Ventilation Standards: Every habitable room shall have window area of no less than eight percent (8%) of the floor area and at least one window facing directly outdoors which can be opened easily. At minimum, the total openable window area of 14 66 every habitable room shall be four percent (4%) of the floor area of the room, and in no case less than four(4) square feet. In lieu of natural ventilation, a mechanical ventilating system may be provided which is capable of providing two air changes per hour, with twenty percent (20%) of the air supply taken from the outside. Every bathroom and water closet compartment shall have at least fifty percent (50%) of the openable window requirement otherwise appropriate for the floor area, except that no windows shall be required if such rooms are equipped with an exhaust fan connected directly to the outside, capable of providing five(5) air changes per hour. For the purpose of determining light and ventilation requirements, any room may be considered as a portion of an adjoining room when one-half of the area of the common wall is open and unobstructed and provides an opening of not less than one-tenth of the floor area of the interior room or twenty-five (25) square feet, whichever is greater. Windows shall not be required in kitchens of dwelling units when such kitchen has an opening of at least twenty (20) square feet into an adjoining habitable room and when such kitchen is provided with an approved mechanical ventilation system. In addition, the window area of the adjoining habitable room referred to above shall be of sufficient size so as to provide for the light and ventilation requirements of the kitchen area as well as for said adjoining habitable room. 7. Minimum Structural Standards A. Floors, Interior Walls, and Ceilings: Every floor, interior wall, and ceiling shall be adequately protected against the passage and harborage of vermin, rodents, and insects. Every floor shall be free of loose, warped, protruding, or rotted flooring materials and all floor covering shall be maintained in good condition. Every interior wall and ceiling shall be free of holes and large cracks, loose plaster, and blistered paint and shall be maintained in good condition. Lead based paints classified toxic to children shall not be used on wall or molding surfaces. Every toilet room, bathroom, and kitchen floor surface shall be easily cleanable and maintained in good condition. B. Stairways, Porches, and Balconies: Every stairway, inside or outside of a dwelling, and every porch or balcony, shall be kept in safe condition and sound repair. Every flight of stairs and every porch and balcony floor shall be free of structural deterioration. Every stairwell and every flight of stairs which is more than three risers high shall have at least one handrail approximately thirty to thirty-eight (30-38) inches high, measured vertically from the nose of the stair tread to the top of the handrail. All unenclosed floor and roof openings, open and glazed sides of landings and ramps, balconies or porches which are more than thirty (30) inches above grade or floor below, and roofs used for other than service of the building shall be protected by a guardrail; guardrails shall be not less than thirty-six (36) inches in height. Open guardrails and open stair railings on unenclosed stairways shall have intermediate rails such that a sphere six (6) inches in diameter cannot pass through.Every handrail and balustrade shall be firmly fastened and maintained in good condition. A flight of stairs which has settled out of its intended position, or pulled away from the supporting or adjacent structures enough to cause a hazard, must be repaired. No flight of stairs shall have rotting, loose or deteriorating supports. Excepting spiral and winding stairways, the treads and risers of every flight of stairs shall be uniform in width and height. Stairways shall be capable of supporting loads that normal use may cause to be placed thereon. The minimum dimensions that 15 67 will be accepted for existing stairways are as follows: rise not to exceed eight (8) inches in height, run of treads to be not less than nine (9) inches in depth. C. Windows, Doors, and Screens: Every window, exterior door, and hatchway shall be substantially tight and shall be kept in sound condition and repair. Every window other than a fixed window or storm window, shall be capable of being easily opened. Every window or other device with openings to outdoor space which is used or intended to be used for ventilation shall be supplied with sixteen (16)-mesh screens. All windows on basement and first floor levels shall have proper locking devices to prevent opening from the outside. All doors and door and window frames shall be free of blistered paint and shall be maintained in good condition. All door and window hardware and locks shall be functional and be maintained in good condition. D. Safe Building Elements: Every roof, floor, every porch and balcony, stairway, and every appurtenance thereto, shall be safe to use and capable of supporting loads that normal use may cause to be placed thereon. E. Access to Dwellings: Access to and egress from each dwelling shall be provided by at least one doorway that is a minimum of thirty-six (36) inches wide and eighty (80) inches high and otherwise complies with the fire exit provisions of the City's Fire Code. F. Minimum Ceiling Height: The ceiling height of any habitable room shall be at least seven (7) feet; except that in any habitable room under a sloping ceiling, at least one- half of the floor area shall have a ceiling height of at least seven (7) feet, and the floor area of that part of such a room where the ceiling height is less than five (5) feet shall not be considered as part of the floor area in computing the total floor area of the room for the purpose of determining the maximum permissible occupancy. G. Rooms Below Grade: A room located partly or wholly below grade may be used as a habitable room of a dwelling unit provided all of the requirements of this Ordinance are met. If a room below grade is used for sleeping purposes, an emergency escape or egress must be provided. Acceptable means of egress include: (1) Escape or rescue window with a minimum net clear openable area of 5.7 square feet. The minimum net clear openable height dimension shall be 24 inches. The minimum net clear openable width dimension shall be 20 inches. The finished sill height shall not exceed 44 inches above the floor. (2) Exterior-type door or hatch meeting the same minimum requirements as specified in 220.10.07. (G). (I). H. Door Locks and Security: All doors leading to public or shared areas from all dwelling units shall be provided with a single cylinder deadbolt lock, which must be openable from the interior without the use of a key or tool. Deadbolt, night latch or chain locks must be mounted at a height not to exceed 48" from the finished floor and minimum of 34" from the finished floor. The deadbolt must be capable of being locked from the 16 68 exterior of the unit. Manually operated flush bolts or surface bolts are not permitted. must be capable of being locked from the exter'• • : . . . - •- .. .. - • • • requirements of the most current U.B.C. 8. Minimum Interior Standards A. Kitchen Facilities: Every kitchen in every dwelling unit shall include the following: (1) A kitchen sink in good working condition and properly connected to an approved water supply system. It shall provide at all times an adequate amount of heated and unheated running water under pressure and be connected to an approved sewer system. (2) Cabinets and/or shelves for the storage of eating, drinking, and cooking equipment and utensils, and of food that does not require refrigeration for safekeeping; and a counter or table for food preparation. Said cabinets and/or shelves and counter or table shall be, adequate for the permissible occupancy of the dwelling unit and shall be of sound construction furnished with surfaces that are easily cleanable and that will not impart any toxic or deleterious effect to food. (3) A stove and a refrigerator which are properly installed with all necessary connections for safe, sanitary, and efficient operation. Provided that such stove, refrigerator, or similar devices need not be installed when a dwelling unit is not occupied and when the occupant is expected to provide same on occupancy, in which case sufficient space and adequate connections for the installation and operation of said stove, refrigerator, or similar devices must be provided. B. Toilet Facilities: Within every dwelling unit, there shall be a nonhabitable room with an entrance door which affords privacy to a person within said room and which room is equipped with a flush water closet in good working condition. Said flush water closet shall be equipped with easily cleanable surfaces, shall be connected to an approved water system that at all times provides an adequate amount of running water under pressure to cause the water closet to be operated properly, and shall be connected to an approved sewer system. C. Lavatory Sink: Within every dwelling unit, there shall be a lavatory sink. Said lavatory sink may be in the same room as the flush water closet, or if located in another room, the lavatory sink shall be located in close proximity to the door leading directly into the room in which said water closet is located. The lavatory sink shall be in good working condition and shall be properly connected to an approved water system and shall provide at all times an adequate amount of heated and unheated running water under pressure, and shall be connected to an approved sewer system. 17 69 _Bathtub or Shower: Within every dwelling unit, there shall be a nonhabitable room which affords privacy to a person within said room and which is equipped with a bathtub or shower in good working condition. Said bathtub or shower may be in the same room as the flush water closet, or in another room, and shall be properly connected to an approved water supply system and shall provide at all times an adequate amount of heated and unheated water under pressure, and shall be connected to an approved sewer system. D E. Every bathroom and water closet compartment shall have at least fifty percent (50%) of the openable window requirement otherwise appropriate for the floor area. except that no windows shall be required if such rooms are equipped with an exhaust fan connected directly to the outside, capable of providing five (5) air changes per hour. 9. Minimum Standards for Pest Extermination A. All openings in the exterior walls, foundations, basements, ground or first floors, and roofs shall be rodent-proofed in a manner approved by the Compliance Official. B. All windows used or intended to be used for ventilation, all other openings, and all exterior doorways which might provide an entry for rodents and insects, shall be supplied with adequate screens or such other devices as will effectively prevent the entrance of rodents and insects into the structure. C. All sewers, pipes, drains, or conduits and openings around such pipes and conduits shall be constructed to prevent the ingress or egress of rodents and insects to or from a building. D. Interior floors of basements, cellars, and other areas in contact with the soil shall be rodent-proofed in a manner approved by the Compliance Official. E. The owner or operator of a dwelling unit shall be responsible for the extermination of rodents, insects, or other vermin on the premises. Anyone who controls pests in a structure must have a pest control license. Anyone who uses a restricted use pesticide must have a pesticide license to apply pesticides, in accordance with the requirements of the Department of Agriculture. If proper heat treatments are being used to eradicate bed bugs and the heat treatment is performed by the owner of the property and they are not using pesticides and are not charging the renter for the treatment, no license is required by the Department of Agriculture. 10. Minimum Energy Standards Weatherization Requirements: All dwellings which are renter-:occupied during all or a portion of the months of November through April shall comply with the following weatherization requirements: 18 70 A. Install weatherstripping between exterior operable window sash and frames and between exterior doors and frames. Weatherstripping is not required on storm doors or storm windows. B. Caulk, gasket, or otherwise seal accessible exterior joints between foundation and rim joist; around window and door frames; between wall and roof; between wall panels; at penetrations for utility services through walls, floors and roofs, and all other openings in the exterior envelope. C. Install storm windows on all single glazed exterior window units enclosing conditioned space. D. Install storm doors on all exterior door openings into conditioned spaces unless a single door, enclosed porch, vestibule, or other appurtenance provides a double door effect or provides an "R" value of two (2) or more. E. Install positive shut-offs for all fireplaces or fireplace stoves, unless an existing damper provides a positive shut-off. F. Install insulation in accessible attics to achieve a minimum total "R" value of the insulation of R-19. If there is insufficient space for the installation of the recommended "R" value, then the available space shall be insulated to capacity. G. Install insulation in accessible walls and floors enclosing conditioned spaces to achieve a minimum total "R" value of the insulation of R-11 when there is no insulation in a substantial portion of the exterior walls or floors over an unconditioned space. Accessible walls shall not include above grade foundation walls of basements. If there is insufficient space for the installation of the recommended "R " value, then the available space shall be insulated to capacity. 11. Occupancy Standards Notwithstanding any private agreements between the landlord and occupant providing for more restrictive occupancy standards, the maximum occupancy standards shall be: A. No more than one family shall occupy a dwelling unit; and B. The maximum number of occupants in any rental dwelling unit shall not exceed the total of two times the number of bedrooms and the living room. 220.11. HAZARDS The following are considered immediate hazards to the health, safety, and general welfare of the occupants of a seiii n, 1. Heating systems that are unsafe due to: burned out or rusted out heat exchangers (fire box); 19 71 burned out, rusted out, or plugged flues; not being properly vented;being connected with unsafe gas piping; or failing to meet the minimum heating standards set forth in Section 220.10.04. 2. Water heaters that are unsafe due to: burned out or rusted out beat exchangers (fire box); burned out, rusted out or plugged flues; not being properly vented; being connected with unsafe gas piping; or lack of a properly installed and maintained temperature and pressure relief valve. 3. Electrical systems that are unsafe due to: dangerous overloading; damaged or deteriorated equipment; improperly taped or spliced wiring; exposed uninsulated wires; distribution systems of extension cords or other temporary methods; or ungrounded systems or appliances. 4. Plumbing systems that are unsanitary due to: sewer backups; leaking waste system fixtures and traps; lack of water closet; lack of washing and bathing facilities; or cross connections of potable water supply and sewer lines. 5. Structural systems, walls, windows, chimneys, ceilings, roofs, foundations and floor systems that will not safety-safely carry imposed loads or provide safe living conditions. 6. Refuse, garbage, human waste, decaying vermin, or other dead animals, or other materials rendering it unsanitary for human occupancy. 7. Infestation of rodents, insects, vermin, and/or other pests. 8. Missing, or non-functioning smoke detectors and carbon monoxide detectors. 9. Using a room or rooms with no proper egress for sleeping. 10. A dwelling unit that is not serviced with functioning, utilities. 220.12. FIRE SAFETY 1. Fire Exits. A. All dwellings shall have required fire exits, maintained in fully operable condition, and readily accessible to occupant, as per the governing Building Code. B. All exit stairways in multiple unit dwellings or condominiums having more than two (2) occupied levels shall be separated from each other by a substantial separation of at least a one hour fire resistance rating as detailed in the most recent edition of the 114.B.C., or other approved one hours assembly. C. All multiple unit dwellings or condominiums having more than ene two (2) levels and where the lowest level is at an elevation less than grade and having the exit at grade level shall provide a substantial barrier constructed and placed so as to prevent a person from proceeding down the stairs to a level lower than the level of exit. 20 72 D. All multiple unit dwellings or condominiums with 25 or more dwelling units shall provide emergency lighting in the exit ways, corridors, And systems in accordance with Chapter 5-1021 of the N.F.P.A. Std. 101. 2. Automatic Alarms. A. All multiple dwellings and condominiums having an excess of four (4) dwelling units shall provide a manually operated fire alarm system capable of alerting all the occupants of the structure. Each such alarm system shall be activated by a manual pull station located at each exit door and by an automatic device located in the utilities and/or room in which the primary heating system is located. Such device shall be a smoke detector, detecting products of combustion other than heat, and bearing the approval of the Underwriters Laboratories or Factory Mutuals Testing Service for such service, or the International Conference of Building Officials. B. Every dwelling unit within a dwelling or condominium shall be provided with a smoke detector, detecting products of combustion other than heat, and conforming to the requirements of the Underwriters, Laboratories or approved by the International Conference of Building Officials. When actuated, the detector shall provide an alarm in the dwelling unit. 3. Fire Protection System. All fixed and portable fire protection systems and appliances must be accessible and maintained for immediate emergency use. 4. Prohibiting Inside Connection of External Appliances. It shall be unlawful for an owner of a - •- • •• -• . = -• - - -• •-•. •rental dwelling to allow electrical drop cords, extension cords or any electrical wire to run from any electrical outlet from inside the dwelling or dwelling unit for service to an electrical appliance outside of the dwelling or dwelling unit. 220.13. LICENSING 1. License Requirement. Except as otherwise provided herein, Nno person shall operate, let, or cause to be let, a rental dwelling or rental dwelling unit without first having obtained a rental license to do so from the City of Fridley as hereinafter provided. Upon receipt of a properly executed initial application=for licensinga rental license, the Compliance Official and/or his/her designated agent may shall cause an inspection to be made of the premises to determine whether the structure is in compliance with this chapterOrdinance, other Fridley ordinances, and the laws and rules of the State of Minnesota. Each such operatingrental license shall be issued annually and shall expire on the anniversarytwelve months from the date of issuance. Licensc renewalRenewal applications shall be filed at least thirty (30) days prior to license expiration 21 73 date. Every rental dwelling including all rental units may be reinspected after a renewal license application is filed to determine if the premises still conforms to all applicable ordinances and codes. 2.Conformance No operating rental license shall be issued or renewed unless the residential rentalrental dwelling property or condominium conforms to the provisions of this Chapter, the ordinances of the City, and the laws, rules and regulations of the State of Minnesota. 4:3.Fees The annual license fee for a rental license shall be as provided in Chapter 11 of the City Code. A. Any rental inspection which requires three or more inspections or attempts for an inspection will be assessed an additional inspection fee. This fee will be charged starting on the third inspection and willte include attempts to inspect and for each subsequent inspection or attempt. The reinspection fee shall be as provided in Chapter 11 of the City Code for each reinspection needed after the initial inspection and the second inspection. No license shall be issued or renewed until all outstanding reinspection fees and fines in section 220.15. Subd. 3 have been paid, other than those which may be assessed against the Property. If a dwelling or dwelling unitrental dwelling has been licensed, the license may be denied at the time of renewal or may be revoked or suspended in the manner described in Section 220.13.09. (Ref Ord 1337) B. In order to restore a license for a rental dwelling or individual dwelling unit which has had its license denied at the time of renewal or revoked or suspended, the license application shall be accompanied by the license fee as provided in Chapter 11 of the City code. (Ref Ord 1213) C. A fee as provided in Chapter 11 of the City Code shall be paid when filing the license Transfer Form as required in Section 220.13.08. (Ref Ord 1213) �D. Failure to obtain a rental license prior to letting, or operating a rental dwelling or allowing a rental -license to expire will result in a twenty five percent (25%) addition to the rental license fee. Continued noncompliance with the licensing requirements may result in a criminal citation. 4.! A - . : !:- - . A :: .Application Requirements and Process. A. Application Requirements. License application or renewal s shall be made by the owner of record rental units or a legally constituted agent or operator of the property. Application forms may be acquired from and subsequently filed with the Compliance Official within the Community Development Rental Licensing/Inspection Division. The 22 74 applicant shall supply the following information as well as all other information reques.. i on the Rental License application: (1) Name, address, and telephone number and email address of the dwelling eproperty owner if an individual and if an entity, the same information for at least one officer. manager. or director of the entity.; partners of a partnership: corporate officers of a corporation. The City must be notified in writing within five (5)ten (10) days of any change of address or other requested information for the owner. (2) Name, address, and telephone number, and email address of a designated agent or operator. The City must be notified in writing within five (5)ten (10) days of any change of address or other requested information for the designated agent or operator. (3) Name, address, and telephone number of vendee if dwelling is being purchased through a contract for deed or mortgage (name of lender or financial institution holding mortgage). Contract for deed documentation and/or proof of filing in Anoka County must be provided with the application. (4) Legal description and address of dwelling.Legal address of the property where the rental dwelling is located. (5) Number of units in each rental dwelling and the type of units (one (1) bedroom, two (2)bedroom, etc.)within each of the rental dwellings. (6) The number of paved off-street parking spaces available (e.g. enclosed parking spaces, exterior parking spaces, and handicap parking spaces). (7) Description of procedure through which tenant inquires and complaints are to be processed. (7)(8) Each owner of a rental dwelling within the city, when the owner does not reside within the eleven-county metro area compromising of Anoka, Carver. Chisaco. Dakota. Hennepin. Isanti, Ramsey. Scott. Sherburne, Washington and Wright counties. must appoint a designated agent residing within the eleven- county area. The designated agent must be listed on the application and empowered by the property owner to perform maintenance and upkeep and empowered to institute emergency repairs for the rental dwelling. The Compliance Official shall be notified in writing within ten (10) business days of any chance in the designated agent. B. Inspection Required. Licensed rental dwellings are at all times subject to the Compliance Official's right to inspect the rental dwelling and dwelling units to determine whether they are in compliance with the City Code and State law. The Inspection Department shall set up a schedule of periodic inspections to ensure City- 23 75 wide compliance with this Chapter. The Compliance Official shall provide reasonable notice to the owner or operator as to the date and time of the inspection. Every occupant of a dwelling unit; shall give the owner or operator thereof, or his/her agent or employee, access to any part of such dwelling unit. or its premises. at reasonable times for the purpose of effecting inspection, maintenance, repairs, or alterations as are necessary to comply with the provisions of this Ordinance. If any owner, operator. occupant, or other person in charge of a dwelling or dwelling unit fails or refuses to permit free access -and entry to the structure or premises under his/her control for an inspection pursuant to this Chapter. the Compliance Official may seek a court order authorizing such inspection. The submission of a Rental License Application or the possession of a Rental License issued by the City shall constitute agreement to such inspections by the Owner identified on the rental license. 6. Agents for Emergency Repairs Required. 7. Inspection. - .. • .- - . •- - . . . owner or operator as to the date and time of the inspection. Every occupant of a dwelling unit. Jhall give the owner or operator thereof, or his/her agent or employee, access to any part of such maintenance, repairs. or alterations as are necessary to comply with the provisions of this, Ordinance. If any owner. operator, occupant. or other person in charge of a dwelling or dwelling unit fails or refuses to permit free access and entry to the structure or premises under his/her control for an inspection pursuant to this Ordinance, the Compliance Official may seek a court order authorizing such inspection. 8,5. Posting of License. Every license of a multiple dwellingLicensees shall cause a copy of the Rental License for the rental dwelling to be conspicuously posted in a frame with transparent protective covering in the main entry way or other conspicuous location therein_ the current license for the respective multiple dwelling. 9 6. License Transferability. No operating license shall be transferable to another person or to another rental dwelling without written approval of the Compliance Official. A license issued hereunder is transferable providing that the new owner. partners. or corporate officers submit to the Compliance Official within five 24 76 (5) business days after legally acquiring ownership of the licensed rental dwelling(s), a License Transfer Form (supplied by the City). along with the required transfer fee. Failure to submit the license.Rental licenses may be transferred upon completion of a License Transfer Application, payment of the License Transfer fee. and written approval by the Compliance Official. 7. License Suspension_or Revocation, or Conversion to Provisional License. 10. The City Council may revoke, suspend, deny, or decline to renew any Rental License applied for or issued under this Chapter as detailed here. A. Notification. - - -- • -- - - . - - be notified in writing pursuant to Section 220.15 of this Chapter at least twenty (20) days prior to a hearing on the matter.The Compliance Officer shall send written notice to the Ownerlicensee of the date and time of a hearing before the City Council regarding any license application or any potential revocation or suspension of a license. Such notice shall be sent to the Owner's and/or Agent's address on file with the City and shall be sent not less than twenty (20) days from the date of any license- related hearing. B. Hearing. A hearing shall be held before the Council or a hearing examiner appointed by the Council. Upon violation of any of the terms and conditions of a rental license, the City Council may hold a license hearing for consideration of the suspension. revocation, or conversion to a provisional license. The hearing shall be conducted to • - • -• -- - -.• ' - - - 0.-b:At any such hearing. the licensee shall be provided with due process, including: (1) Allowing interested parties the right of legal representation, the right to present evidence, witnesses, and to cross-examine all adverse witnesses, and (2) Making a complete record of all proceedings, including findings of fact and conclusions of law. C. Suspension, or Revocation, or Conversion to Provisional License. Every operating licenscRental License issued under the provisions of this ordinance Chapter is subject to suspension, or revocation, or conversion to a provisional license for the entire rental dwelling or for individual rental dwelling units, by the City Council, should the licensee fail to operate or maintain the licensed rental dwelling(-s) and dwelling units therein consistent in compliance with the provisions of this Chapter, all applicable ordinances of the City, and the laws and regulations of the State of Minnesota. D. An operatingA Rental 4License may also be suspended, denied, converted to a provisional license, not renewed, or revoked for any of the following reasons: • 25 77 (1) The license was procured by misrepresentation of material facts, by fraud, by deceit, or by bad faith. (2) The applicant or one acting ion his/her behalf made oral or written misstatements or misrepresentations off material facts in or accompanying the application. (3) The licensee or applicant has failed to comply with any condition set forth in any other permits granted by the City of Fridley. (4) The activities of the licensee in the licensed activity create or have created a serious danger to the public health, safety, or welfare. permits conditions that injure, annoy. or endanger the safety. health. morals. (5) The Rental Dwelling, the building of which such dwelling is a part. or any portion thereof, contains conditions that might injury or endanger the safety. health or welfare of any member of the public. (6) Failure to continuously comply with any condition required of the applicant for the approval or maintenance of the Rental License. (7) Failure to include the crime free/drug free lease addendum in all leases as required by this Chapter. (5)(8) A violation of any other term and condition of the Rental License or of this Chapter. E. Effect of Suspension or Revocation. In the event that an operatinga Rental 4License is suspended or revoked by the City Council for any violation under the provisions of Chapter 220under Sections 220.7 to 220.12, it shall be unlawful for the owner or his/her duly authorized agent to thereafter permit any new occupancies of vacant, or thereafter vacated rental units, until such time as a valid operating license is restored to the affected units. Issuance of a new license after suspension or revocation shall be made in the manner provided for obtaining an initial license. F. Terms of Provisional License. At the time of approval of the provisional license, the City Council shall approve a mitigation plan to address and prevent future license violations. The mitigation plan may include adding security measures, improving the exterior of the property, reducing or changing the hours of operation. holding neighborhood meetings, or other steps the Council deems appropriate. 44,8 Posted to Prevent Occupancy. 26 78 Whenever any dwelling or individual dwelling unit has been denied a license, has had its operating license suspended or revoked pursuant to Section 220.14, or is unfit for human habitation, it shall be posted with a placard by the Compliance Official to prevent further occupancy. No person, other than the Compliance Official or his/her representative, shall remove or tamper with any placard used for posting. The Compliance Official will post on the placard the date that the vacancy shall become effective. On or after the placard vacancy date, no person shall reside in, occupy, or cause to be occupied any dwelling or dwelling unit which has been posted to prevent occupancy. 12.9. Failure to Obtain License. If it is determined that a rental dwelling unit or rental dwelling unit is being operated without a valid license, an immediate inspection shall be conducted. It shall be unlawful for an owner, designated agent or operator, after notice sent first class mail, to continue operation of a rental dwelling unit without submitting an application for a license under this Chapter, along with the necessary license fee. Once an application has been made, it shall be unlawful for the owner, or his/her duly authorized agent, to permit any new occupancies of vacant, or thereafter vacated rental units until such time as the license is issued. 1 3.10.Issuance of Rental License. If the rental dwelling is in compliance with all applicable ordinances of the City and the laws and regulations of the State of Minnesota, a license shall be issued to the present owner or his/her designated agent. If the City finds that the circumstances of the occupancy following the issuance of the license involve possible Code violations, substandard maintenance, or abnormal wear and tear,the City may reinspect the premises during the licensing period. 11. Additional License Conditions. A. Licensees must, as a continuing obligation of a license, maintain a current register of tenants and other person(s) who have lawful right to occupancy of rental properties. In its application. the licensee must designate the person(s) who will have possession of the register and must promptly notify the City of any change of the identity, address or telephone number of such person(s). The register must be made available for inspection by the City at all times. B. Licensees are responsible for the acts or omissions of their managers and operators. C. The Licensee or Manager is required to complete one educational course of the Crime-Free- Rental Housing Program, or similar course, as approved by the City Manager. The certification must be complete within one (1) year of initial license issuance and repeated once every five (5) years. Program attendees will be required to pay a participation fee in an amount determined to cover the direct cost of the program. D.The Licensee or Manager must provide all tenants with a written lease which must include the City approved crime free rental housing addendum. The lease and addendum must be made available for review by the City Manager or their designee upon request. 27 79 E. All Licensee or Managers must complete a criminal background check on all occupants of a dwelling and provide proof of completion of said background check at the request of the City. Manager or their designee. F. Licensees shall comply with state statues regarding completion of background checks on managers. caretakers or agents. I21-. Exemptions No rental license is required for the following: A. Hotels B. Motels C. Hospitals D. State-licensed residential care facilities E. Assisted living facilities F. Nursing homes G. Single-family homes or duplexes in which the owner resides within a portion of the single family home or duplex, and if the building is a duplex, only that portion of the building in which the owner resides is exempt. The other portion of the duplex requires a rental license. 220.14. CONDUCT ON LICENSED PREMISES 1. It shall be the responsibility of the licensee to take appropriate action following conduct bysee that residents. guests, or other persons affiliated with the resident occupying a premises conduct themselves in such a matter and engage in illegal conduct so as not to cause the premises to be disorderly. For purposes of this section. a premises is disorderly when illegal conduct occurs on the premises, including any of the following types of occupant(s) or guests - .. - • •- - - - -s - . :illegal conduct in violation of the listed statutes: A. Minn. Stat. SS 609.75 through 609.76, which prohibit gambling. B. Minn. Stat. SS 609.321 through 609.324 which prohibit prostitution and acts relating thereto; 28 80 C. Minn. Stat. SS 152.01 through 152.025, and S 152.027, subds.1 and 2, which prohibit the unlawful sale or possession of controlled substances; D. Minn. Stat. S 340A.401, which regulates the unlawful sale of alcoholic beverages; E. Minn. Stat. S 609.33, which prohibits owning, leasing, operating, managing, maintaining, or conducting a disorderly house, or inviting or attempting to invite others to visit or remain in a disorderly house; F. Minn. Stat. SS 97B.021, 97B.045, 609.66 through 609.67 and 624.712 through 624.716 and Chapter 103 of the City Code, which prohibit the unlawful possession, transportation, sale or use of weapon; or G. Minn. Stat. S 609.72, which prohibits disorderly conduct. H. Fridley City Code 124.07, prohibiting public nuisance noises, and Chapter 110 of the City Code prohibiting public nuisances. I. Minn. Stat. SS 609.221, 609.222, 609.223, 609.2231, and 609.224 regarding assaults in the first, second,third, fourth, and fifth degree. J. Minn. Stat. SS 609.50 which prohibits interference with police officer. K. Minn. Stat. SS 609.713 which prohibits terroristic threats. L. Minn. Stat. SS 609.715 which prohibits presence of unlawful assembly. M. Minn. Stat. SS 609.71 which prohibits riot. N. Minn. Stat. SS 609.226 and 347.56. relating to dangerous dogs. O. Minn. Stat. SS 609.78 which prohibits interfering with -911- phone calls. P. Minn. Stat. SS 609.229 (Crime committed for benefit of a gang). Q. Minn. Stat. SS 609.26. subdivision 1(8)(causing or contributing to a child being a runaway). R. Minn. Stat. SS 609.903 (Racketeering). S. Minn. Stat. SS 617.23 (Indecent Exposure). T. Minn. Stat. SS 609.595 (Criminal damage to property). U. Minn. Stat. SS 152.027 subd.4. (Unlawful sale or possession of small amounts of marijuana). 29 81 V. Minn. Stat. SS 260B.425 (Contributing to the delinquency of a child)- Incidents where the victim and suspect are "family"' or "household" members as defined in the Domestic Abuse Act, found in Minn. Stat. S 518.01 and there is a report of"Domestic Abuse"" as defined in the Domestic Abuse Act or where the tenant is the victim of an order for protection violation under Minn. Stat. S 518B.01. subd. 14. shall not be considered "Disorderly Use"" of the premises for purposes of requiring owners to proceed against a tenant who is the victim in such situations under the Crime Free/Drug Free Lease Addendum. 2. The Public Safety Director or his/her designee shall be responsible for enforcement and administration of this section.determining when there has been an incident of illegal conduct that constitutes disorderly use of the licensed premises. - 3. Upon determination by the Public Safety Director or designee that a licensed premises or an Individual dwelling unit was used in a disorderly matter, as described in involved in a violation of subsection (1), or otherwise used in violation of the crime free lease addendum, the Public Safety Director or designee shall notify the licensee of the violation and direct the licensee or a legally constituted agent or operator to take steps to prevent further violations. Notice may be personally served on the licensee or legally constituted agent or operator, sent by certified mail to the licensee and legally constituted agent or operator's last known address. or. if neither method of service effects notice, by posting on a conspicuous place on the rental unit and mailing a copy of the notice by first class mail of the violation. The notice shall and direct the licensee to take steps to prevent further violations. A copy of said notice shall be sent by first class mail to the occupant in violation of subsection (1). The owner shall notify the tenant or tenants within ten (10) days of the notice of violation of the disorderly use constituting a violation of the crime free lease addendum, and the owner shall take steps to prevent further disorderly use violations. 4. Upon a second violation within twelve (12) months of any one previous instance of disorderly use of a rental dwelling or dwelling unit as described in subsection (1) involving a guest of or an occupant of a dwelling unit, the notice provided under subsection 3 of this ectionnotice of the disorderly use violation shall be sent to the property owner. The notice shall require the licensee to submit a written report of the actions taken, and proposed to be taken, to prevent further disorderly use violations on the premises. This written report shall be submitted to the Public Safety Director or designee within _ 'ss days of receipt days of request of such notice aid report and shall detail all actions taken by the licensee in response to all notices regarding violations ofte subsection (1) within the preceding twelve (12) months.-if • • - - - - - - -` - - - , If no written report is received within the required timeframe for response. the rental dwelling license for the individual rental unit, rental license for the property or the individual dwelling unit may be denied, revoked, suspended, not renewed. or not renewedconverted to a provision license. An action to deny, revoke, suspend, convert to a provisional license, or not renew a license under this section shall be initiated by the City Council at the request of the Public Safety Director in the manner described in Section 220.13.09. The owner shall notify the tenant or tenants within 30 82 ten (10) days of the notice of violation of the disorderly use constituting a violation of the crime free lease addendum, and the owner shall take steps to prevent further disorderly use violations. 5. If a third or subsequent violation of subsection (1) involving aresidents, guests. or other persons affiliated with the resident occupying an individual dwelling unit. of or an occupant of a dwelling unit occurs within twelve (12) months after the first any-two (2) previous instances for which notices (pursuant to this section) were sent to the licensee_regarding the same dwelling unit, the rental dwelling license for the individual rental unit, the rental license may be denied, revoked, suspended, converted to a provisional license or not renewed. An action to deny, revoke, suspend, convert to a provisional license, or not renew a license under this section shall be initiated by the City Council at the request of the Public Safety Director in the manner described in Section 220.13.09. 6. No adverse license action shall be imposed if the violation to subsection (1) occurred during the pendency of eviction proceedings (unlawful detainer) or within thirty (30) days of notice given by the licensee to an occupant to vacate the premises, where the violation was related to conduct by that occupant, other occupants, or the occupant's guests. Eviction proceedings shall not be a bar to adverse license action, however, unless they are diligently pursued by the licensee. Further, an action to deny, revoke, suspend, convert to a provisional license, or not renew a license based upon violations of this section may be postponed or discontinued at any time if it appears that the licensee has taken appropriate measurersmeasures which will prevent further violations to subsection (1).disorderly use of the premises. The owner shall notify the tenant or tenants within ten (10) days of the notice of violation of the disorderly use constituting a violation of the crime free lease addendum. and the owner shall take steps to prevent further disorderly use violations. 7_A determination that the licensed premises or dwelling unit has been used in violation of subsection (1) shall be made upon substantial evidence a preponderance of the evidence to support such a determination. It shall not be necessary that criminal charges be brought to support a determination of violation to subsection (1), nor shall the fact of dismissal or acquittal of criminal charges operate as a bar to adverse license action under this section. 220.15. COMPLIANCE 1. The City Manager shall designate the Compliance Official to administer and to enforce the provisions of this Chapter. The Compliance Official is hereby authorized to cause inspections on a scheduled basis and/or when reason exists to believe that a violation of this Chapter has been or is being committed. 2. Whenever the city determines that any dwelling or dwelling unit fails to meet the provisions of Section 220.07 through 220.142 of this Chapter, the city may issue a compliance order setting forth the violations of this Chapter and ordering the owner, agent, operator, or occupant to correct such violation. This compliance order shall: A. Be in writing. 31 83 B. Describe the location and nature of the violation in this Chapter. C. Specify a reasonable time in which violations must be corrected. D. Be served on licensee. Service shall be sufficient if personally served, posted in a conspicuous place on or about the premises, or if mailed by first class mail to the licensee's last known address on file pursuant to Section 220.13.04. 3. The Compliance Official may investigate complaints relating to the rental dwelling or dwelling unit. The Compliance Official shall contact the owner or agent to verify that the owner or agent is aware of the complaint. If deemed necessary by the Compliance Official, an inspection of the unit may be conducted to determine if there are violations to this Chapter and other applicable ordinances of the city and the laws and regulations of the State of Minnesota. If the inspection reveals that an ordinance or code violation exists, the Compliance Official shall notify the owner or agent pursuant to subsection (2). Unless the correction or repair is an emergency case as regulated in Section 220.17, the owner or agent shall comply with the timeframes established in the Compliance Order; it is not expected that repairs or corrections are completed within twenty-four(24) hours. 220.16. EMERGENCY CASES When a violation of Section 220. 11 of this Chapter constitutes an imminent peril to life, health, safety, or property, the City may require immediate compliance and, if necessary, take appropriate action to correct the violation. 220.17. COLLECTION OF RECYCLABLES Every owner of a multiple dwelling of 13 or more units or other units not serviced under the City contract for recycling services shall arrange and contract for at least monthly collection of recyclables to include at least newsprint, glass (food and beverage), aluminum, steel, and tin cans, and corrugated cardboard. A copy of the owner's contract for recycling services shall be submitted to the City in conjunction with the annual renewal of the rental license. 220.18. UNFIT FOR HUMAN HABITATION 1. Declaration. Any structure dwelling or dwelling unit which is damaged, decayed, dilapidated, unsanitary, unsafe, infested, or which lacks provision for illumination, ventilation, or sanitary facilities to the extent that the defects create a hazard to the health, safety, or general welfare of the occupants or to the public may be declared unfit for human habitation. Whenever any structure dwelling or dwelling unit has been declared unfit for human habitation, the City shall order same vacated within a reasonable time and shall post a placard on same indicating that it is unfit for human habitat-ion, and any operating license previously issued for such structure dwelling or dwelling unit shall be revoked. 32 84 2. Vacated Dwelling. It shall be unlawful for a vacant structure dwelling or dwelling unit, which has been declared unfit for human habitation, as provided above, to be used for human habitation until the defective conditions have been corrected and written approval has been issued by the City. It shall be unlawful for any person to deface or remove the declaration placard from any such structure dwelling or dwelling unit. 3. Secure Unfit and Vacated Dwellings. The owner of any structure dwelling or dwelling unit, which has been declared unfit for human habitation, or which is otherwise vacant for a period of 60 days or more, shall make same safe and secure so that it is not hazardous to the health, safety, or general welfare of the public and does not constitute a public nuisance. Any vacant dwelling or dwelling unit open at doors or windows, if unguarded, shall be deemed to be a hazard to the health, safety, and general welfare of the public and a public nuisance within the meaning of this Chapter and Chapter l 10. 4. Hazardous Building Declaration. In the event that a dwelling or dwelling unit has been declared unfit for human habitation and the owner has not remedied the defects within a prescribed reasonable time, then it may be declared a hazardous building and treated consistent with the provisions of Minnesota Statutes, Section 463.15-463.261. 220.19. EXECUTION OF COMPLIANCE CODES Upon failure to comply with a compliance within the time set and no appeal having been taken, the city council may, by resolution, cause the cited deficiency to be remedied as set forth in the compliance order. The cost of such remedy shall be placed against the subject property and may be levied and collected as a special assessment in the manner provided by Minnesota Statutes, Chapter 429. 220.20. APPEAL When it is alleged by any person to whom a compliance order is directed that such compliance order is based upon erroneous interpretation of this Chapter, such person may appeal the compliance order as provided under Chapter 6 of the City Code. The filing of an appeal shall stay all proceedings, unless such a stay would cause imminent peril to life, health, safety, or property. 220.21. TRANSFER OF OWNERSHIP Anyone securing an interest in the dwelling or dwelling until which has received a violation tag or compliance order shall be bound by the same without further service of notice and shall be liable to all penalties and procedures under this Chapter. 33 85 220.22. NO WARRANTY BY CITY By enacting and undertaking to enforce this ordinance, neither the city nor its council, agents, or employees warrant or guarantee the safety, fitness, or suitability of any dwelling in the City, and any representation to the contrary by any person is a misdemeanor. Owners or occupants should take whatever steps they deem appropriate to protect their interests, health, safety, and welfare. A warning in substantially the foregoing language shall be printed on the face of the license. 220.23. SEVERABILITY Every section, provision, or part of this Chapter is declared separable from every other section, provision, or part to the extent that if any section, provision, or part of this Chapter shall be held invalid, such holding shall not invalidate any other section, provision, or part thereof. 220.24. PENALTIES Any violation of this Chapter is a misdemeanor and is subject to all penalties provided for such violations under the provisions of Chapter 901 of this Code. It is a misdemeanor for any person to prevent, delay, or provide false information to the Compliance Official, or his/her representative, while they are engaged in the performance of duties set forth in this Chapter. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS DAY OF ,2018. Scott J. Lund, Mayor ATTEST: Debra A. Skogen, City Clerk First Reading: Second Reading: Publication Date: 34 86 AGENDA ITEM [11F1rid1le:fCITY COUNCIL MEETING OF NOVEMBER 26, 2018 To: Wally Wysopal, City Manager From: Annie Leibel, HRA and City Management/Elections Asst. Paul Bolin, HRA Asst. Exec. Director Date: November 8, 2018 Re: Transfer of City Property to Fridley HRA to Facilitate Redevelopment The new Civic Campus is almost complete and the Fridley HRA has an Exclusive Negotiations Agreement with Steve Dunbar of Ivy Properties to redevelop the existing Municipal Center. Dunbar is working with Ebenezer Homes, part of Fairview Health Services, to develop a 134 unit senior"with services"building. The building would include assisted living as well as memory care units. Ivy Properties plans to build and own the property, as Ebenezer prefers to work with development/investment groups than to build and own the building. Currently, the Fridley HRA owns portions of the property, and the City owns others. When the City transfers property it is done by ordinance. An ordinance has been prepared and attached. mcg ti '-' i , The City owns Lot 6, Lots 8,9,10,11,12,13, f t.' 4 ' Block 1, Fridley Plaza Center, Anoka County, ,, : Minnesota(shown in blue below). These parcels include most of the City Hall building and plaza 1: area, including the police garage. The Fridley . , :' HRA owns Lot 7, 15, 16, Block 1 and Lot 2 C L > i. ' Block 2 (shown in pink). These parcels include .0 a_ '.l 3 the access drive between 6499 University and , , -y ,» I City Hall, City Hall parking lot, 6401 University's parking lot, some of 6341 '`` =_ t, , ` - • University's parking lot, and a small area near Fourmies and 6401 University. The aerial image above shows parcel ownership. There is also a 1 i t' _ , map in attachment 1 that shows each parcel l . lot r. ly ,,,, ,„* more distinctly. .u•.c.Cla..- M S E i !w - f —;-'_it 'ft`s 87 In addition, the University Avenue frontage road between Mississippi Street and Fourmies Avenue is planned to be vacated. This would give an additional 38 feet of property to each parcel along the frontage road. The right of way to be vacated, is included in this transfer. The property is to be sold to the Dunbar Group, for the appraised fair market value amount of $2.2M. The Authority will return all proceeds above its' actual costs, and the eligible extraordinary development costs incurred by Dunbar, to the City. This deal structure is typical for HRA redevelopment projects. There is no indebtedness on the property. Staff recommends a motion holding a Public Hearing and first reading of the proposed ordinance of Sale and Transfer of City Property to Fridley HRA for Redevelopment. 88 PUBLIC HEARING BEFORE THE CITY COUNCIL Notice is hereby given that there will be a public hearing of the Fridley City Council at the Fridley Municipal Center, 7071 University Avenue N.E. on Monday, November 26, 2018, at 7 : 00 p.m. For the purpose of: Consideration of an Ordinance to transfer property to the Housing & Redevelopment Authority in and for the City of Fridley, to facilitate the redevelopment of the Fridley Municipal Campus generally located at 6431 University Avenue NE. The legal description is on file and available at the Fridley Municipal Center. Any and all persons desiring to be heard shall be given an opportunity at the above stated time and place. Any questions related to this item may be referred to Stacy Stromberg, Planner, 763-572-3595 . Hearing impaired persons planning to attend who need an interpreter or other persons with disabilities who require auxiliary aids should contact Roberta Collins at 763-572-3500 no later than November 19, 2018 . The TDD number is 763-572-3534 . DEBRA A. SKOGEN CITY CLERK CITY OF FRIDLEY Publish: November 16, 2018 89 ORDINANCE NO. AN ORDINANCE UNDER SECTION 12.06 OF THE CITY CHARTER AND MINNESOTA STATUTES SECTION 465.035 REGARDING CERTAIN REAL ESTATE AND AUTHORIZING THE CONVEYANCE THEREOF SECTION 1. The City of Fridley is the fee owner of the tract of land within the City of Fridley, Anoka County, State of Minnesota, described as follows: Lots 6, 8, 9, 10, 11, 12 and 13, Block 1, Fridley Plaza Center, according to the recorded plat thereof, Anoka County, Minnesota (the "Lots"). SECTION 2. The City Council hereby determines the following: A. The City no longer has any reason to continue to own the Lots, and the City Council is hereby authorized to transfer the Lots to the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority") for disposal. B. The Lots are to be part of a redevelopment project(the"Project") undertaken by the Authority. C. After redevelopment of the Project, the Authority will transfer any sales proceeds, less its expenses, to the City. SECTION 3. The Mayor and City Clerk are hereby authorized to sign the necessary contracts and deeds to effect the transfer of the above described real estate. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 10TH DAY OF DECEMBER, 2018. SCOTT J. LUND — MAYOR ATTEST: DEBRA A. SKOGEN — CITY CLERK Public Hearing: November 26, 2018 First Reading: November 26, 2018 Second Reading: December 10, 2018 4810-6796-4026,v. 1 90 ..., AGENDA ITEM JJFridlj CITY COUNCIL MEETING OF ey November 26, 2018 To: Walter T. Wysopal, City Manager, Mayor and City Council From: Daniel Tienter, Director of Finance/City Treasurer Korrie Johnson, Assistant Director of Finance Date: November 26, 2018 Re: Resolution providing for Water Utility, Sanitary Sewer Utility, Storm Water Utility and Solid Waste Abatement Fees and Rates for 2019 In 2017, the City authorized Ehlers, Inc. (Ehlers) to conduct a Utility Rate Study (Study) for both the Water and Sanitary Sewer Utility Funds for 2018 and several subsequent years. On September 25, 2017, the City Council (Council) accepted the findings of the Study and adopted its recommendations effective January 1, 2018. Generally, the Study identified a revenue structure designed to stabilize rate changes over time and create a more equitable approach among user classifications in addition to other goals. On October 22, 2018, the Council reviewed the year—to—date status of the Study recommendations and revised revenue structure along with a series of recommendations from staff for fee and rate modifications for 2019, which are summarized below. Additionally, the City also operates a Storm Water Utility and provides Solid Waste Abatement (i.e., recycling) services for the community; proposed changes to those fund are also outlined below. Water Utility Fund Since 2012, per capita residential water consumption declined approximately 22%, despite an increase in area population of approximately 3%. As such, the Water Utility Fund must continue to service more users while experiencing a reduction in its principal revenue source — water consumption volume. As such, the City, in concert with the Study recommendations, modified the Water Utility fees and rates to address this revenue issue. However, based on the October 22, 2018 analysis as presented to the Council, staff currently estimate year—end actual to be approximately $100,000 less than the 2018 projection as provided by the Study, due to a decrease in water usage. In order to maintain the equitable treatment among user classifications and ensure an appropriate amount of revenue to operate the Water Utility, staff recommend the Council increase the usage rates for residential users by 3.0% and commercial/industrial users by 3.0 % to 6.0%. Also, given the reduction in water usage over time 91 and the encouragement from the Metropolitan Council to continue conservation efforts, staff recommend a 10.0% increase in the base fee, which would result in an increase for residential users of $2.00 per quarter or $0.67 per month and $5.00 per quarter or $1.67 per month for commercial/industrial users. Sanitary Sewer Utility Fund Generally, Sanitary Sewer Utility Fund revenues are dependent upon water consumption. With the continuing decline in water usage, and the ever—increasing sanitary sewer charges and fees imposed by the Metropolitan Council, which are estimated to increase approximately 9.2% for 2019, the Sanitary Sewer Utility Fund fees and rates continue to increase accordingly. At present, charges— for—service from the Metropolitan Council comprise about 70% of all Sanitary Sewer Utility Fund expenditures. However, as discussed on October 22, 2018, following the fee and rate modifications consistent with the Study, staff currently estimate the Sanitary Sewer Utility Fund to exceed revenue projections by approximately $200,000. As such, staff recommend the Council increase the usage rates by 4.4%, but maintain the current base fee of$50 and $100 for residential and small multiple family users, respectively. For large multiple family and commercial/industrial users, staff recommend an increase in the base fee of 5.0%, or $1.00/quarter or$0.33/month. Storm Sewer Utility Fund Based on the Proposed 2018 Budget, staff anticipate the Storm Water Utility Fund to support approximately $1,373,000 in capital projects as well as $1,151,000 in operational expenditures. Additionally, staff estimate another $2,655,000 of projects between 2020 and 2023. Given these planned expenditures, staff recommend a 3.5% increase in the Storm Water Utility Fee, or $0.32 per quarter for a residential lot and $0.97 per acre. Solid Waste Abatement Fund At the September 10, 2018 Conference Meeting, the Council reviewed various Request for Proposal (RFP) for recycling services as well as information pertaining to the prevailing market trends and factors related to recyclable materials. Given the dynamics outlined in the discussion, staff recommend a 10% increase, or $0.82 per quarter, in the Recycling Fee for 2019, which will offset the anticipated cost increase in the recycling services contract. At present, these services account for approximately 83% of the Solid Waste Abatement Fund Budget expenditures. Financial Impact Generally, the recommended changes in the charges—for—service will allow each fund to respond to its various cost pressures while increasing the overall sustainability of their operations and limiting the need for future borrowing to support certain capital expenditures. Based on the above information, staff recommend the Council adopt the proposed fees and rates for the various funds as outlined in the attached resolution (Attachment A). 92 RESOLUTION NO. 2018 - RESOLUTION PROVIDING FOR WATER, SEWER, STORM WATER& RECYCLING RATE CHANGES FOR 2019 WHEREAS, Section 402.20 and 113.11 of the City Code provides that the City Council shall have the authority to set water, sewer, storm water and solid waste abatement(recycling)rates by resolution; and WHEREAS, it is necessary to provide an increase of revenue in order for the utility and solid waste abatement funds to be self-sustaining without relying on debt to fund ordinary capital outlay, and to maintain low to moderate rate increases; and WHEREAS, the following rate structure and rates are to be effective with the first billing in 2019. NOW THEREFORE, be it resolved, that the following water, sewer, storm water and recycling fee schedules for all customers shall be as follows for the year 2019: 2019 Water Rate and Structure Volume Rate Fixed per 1,000 Property Class Charge Gallons Residential Actual Consumption (Quarterly 0-8,000) $20.00 $2.32 Actual Consumption (Quarterly 8,001-16,000) $20.00 $2.67 Actual Consumption (Quarterly 16,001-24,000) $20.00 $3.20 Actual Consumption (Quarterly over 24,000) $20.00 $4.00 Multi-family All Usage $20.00 $2.67 Commercial Actual Consumption(Quarterly 0-250,000) $2.32 Actual Consumption (Quarterly 250,001-500,000) See $2.75 Actual Consumption (Quarterly 500,000-1 million) Below $3.16 Actual Consumption(Quarterly over 1 million) $3.63 Meters less than 1" $20.00 Meters 1" and greater $55.00 Irrigation All Usage $20.00 $4.00 93 2019 Sewer Rate and Structure Volume Rate Fixed per 1,000 Property Class Consumption Basis Charge Gallons Residential Winter Quarter Water Usage $50.00 $5.95 (fixed charge includes 1' 8,000 gallons) Multifamily 3 units or less (fixed charge Winter Quarter Water Usage $100.00 $5.95 includes 1st 24,000 gallons) Multifamily 4 units or more Current Quarter Water Usage $21.00 $5.95 Commercial Current Quarter Water Usage $21.00 $5.95 2019 Storm Water Fee and Structure Fee to increase from $27.74 in 2018 to $28.71 in 2019 per acre per quarter—residential lots are defined to be 1/3 of a Residential Equivalency Factor (REF) acre, which equates to $9.56 per quarter for residential properties in 2019 ($9.24 in 2018). 2019 Solid Waste Abatement Fee and Structure Fee to increase from $8.20 in 2018 to $9.02 in 2019 per quarter—fee is per residential dwelling unit up to 12 units per property. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 26th DAY OF NOVEMBER, 2018. SCOTT J. LUND - MAYOR ATTEST: DEBRA A. SKOGEN - CITY CLERK 94 N N N N N N N N N CCCC C CCCC CD N C C C C C L 0) O O O O O O O O O > > O 0 o 0 06 t C _ _ _ _ = _ — — O O — — — _ — u to O Tof0 f0 (0 C0 C0 C0 IU (o -0 0 CD f0 C0 CC N co 0) 0 00 00 00 00 00 DO DD o0 0D l0 t0 o0 00 0D 00 b0 a 0 0 8 0 8 $ 8 8 8 v v 8 0 8 0 8 " w E_ LL O 0 0 0 0 N N 0 O O O_ U co g > > y al oo\' o° o\' oo\' to o\' 3' a° 3° off° o\' o 0 0 E C 0 0 0 0 0 0 0 0 to ro �"� c c c N M m m re; C cvi 6 10 \o N y m v V V V O L Ci Ci 10 N N O 0 N N N 1D M to U1 U1 1.81OJ 01 M lO N 8 CO M I, '-I O 8 01 01 01 01 V) ID a CD N N m V N N N M m > V> n III 111 td O O CO CO a c c c O N 01 m 0 CD CD N > VT VVin in T VT T VT VT VT VT VL VT VT VT N 00 3 3 3 3 C O o O O u ;• e \ e * * o v v v v o a * o 0 0 ,n In e. 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N 0 0 SO m 00 = 3 0 0 0 '" 7 d f V ++ ppop a 8o c C 0 w cmv � D c ¢ .� +' eC a 0 0 0 Ti e S O N N d 0 > > ry N N N N 7 n7 O a •I •i 0 o - y N C ,n • .-E •E •2 O . g � � g o E � � � E r_ ° 2 C m m CD i'3' 3 = ._ p O ti �' 0 8 8 `" CD m 0 r v 0 E E ¢ ; .Q CCI '5 ii ce 0 8 E g v c 00 o ao6 .-D 0 Z uQ o o In o 2 2 t H is 2 U° LI; a 00 1Qn 00 95 AGENDA ITEM `o inf ivy CITY COUNCIL MEETING OF Pttl NOVEMBER 27, 2018 TO: Walter Wysopal, City Managerr‘ PW18-067 FROM: James Kosluchar, Public Works Director DATE: November 21, 2018 SUBJECT: Agreement Authorizing the Donation of Real Property to the City of Fridley Since late last year, our City Attorney's office has been working with the legal staff from Ralcorp (aka Treehouse Foods)to establish receipt of a donation of property from this company. As you may recall,the subject property was required for the City of Fridley to construct a stormwater pond as part of the Oak Glen Creek Pond Expansion project that began in 2017. At that time, we had advised staff at Treehouse Foods that the City of Fridley would accept a donation of the subject property if they preferred over their donation of an easement over the subject property. The City Attorney has developed the attached agreement and accompanying resolution that conveys the property to the City of Fridley. The resolution also approves execution of an access agreement in favor of the City of Fridley to specifically allow access to the property. Staff recommends the City Council move to approve the attached resolution Authorizing the Donation of Real Property to the City By Ralcorp Frozen Bakery Products, Inc. Pursuant to Minnesota Statutes§465.03. If approved, staff will notify Treehouse Foods of the approval, and will have documents fully executed and recorded. JPK:jpk Attachments 96 CITY OF FRIDLEY ANOKA COUNTY, MINNESOTA RESOLUTION NO. RESOLUTION AUTHORIZING THE DONATION OF REAL PROPERTY TO THE CITY BY RALCORP FROZEN BAKERY PRODUCTS,INC. PURSUANT TO MINNESOTA STATUTES § 465.03 WHEREAS, Ralcorp Frozen Bakery Products, Inc., a Delaware corporation ("Ralcorp" or "Donor") owns 1.3 acres of property in the City of Fridley, County of Anoka, State of Minnesota, legally described as follows: That part of Lot 3, Block 4, Commerce Park, according to the recorded plat thereof, Anoka County, Minnesota, which lies east of a line beginning at a point on the north line of said Lot 3 being 205.00 feet east of the northwest corner of said Lot 3; thence southerly to a point on the south line of said Lot 3 being 125.00 feet east of the southwest corner of said Lot 3 and which lies northwesterly of the following described line: Commencing at the northeast corner of said Lot 3; thence North 89 degrees 55 minutes 02 seconds West, along the north line of said Lot 3, a distance of 537.88 feet to the point of beginning; thence South 00 degrees 22 minutes 42 seconds East a distance of 93.85 feet; thence South 30 degrees 58 minutes 03 seconds West a distance of 40.92 feet; thence South 73 degrees 57 minutes 03 seconds West, a distance of 129.69 feet; thence South 11 degrees 48 minutes 23 seconds West a distance of 102.57 feet; thence South 01 degree 22 minutes 32 seconds West a distance of 133.70 feet to the south line of said Lot 3 and said line there terminating. Except the south 25.00 thereof. (the "Real Property"). WHEREAS, Donor wishes to donate the Real Property to the City of Fridley ("City" or "Donee")without compensation. WHEREAS, pursuant to Minnesota Statutes § 465.03 the City has the power and authority to accept a grant or devise of real property pursuant to a two-thirds majority vote of its members: M.S.A. >z 465.03 Gifts to Municipalities Any city, county, school district or town may accept a grant or devise of real or personal property and maintain such property for the benefit of its citizens in accordance with the terms prescribed by the donor. Nothing herein shall authorize such acceptance or use for religious or sectarian purposes. Every such acceptance shall be by resolution of the governing body adopted by a two-thirds majority of its members, expressing such terms in full. 97 WHEREAS, Minnesota Statutes Chapter 462 and Fridley Subdivision Code, Chapter 211 prohibit the recording of certain conveyances unless the conveyance is in compliance with the City's subdivision regulations. WHEREAS, pursuant to Minn. Stat. § 462.358, subd. 4b(c) and Fridley Subdivision Code § 211.03(2), the City is authorized to waive enforcement of the subdivision regulations when the City, by adoption of a resolution, determines that enforcing the prohibition on recording the conveyance of unplatted land will create unnecessary hardship and failure to comply with the subdivision regulations does not interfere with the purpose of the regulations, and the conveyance may then be recorded. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fridley as follows: 1. That the City hereby accepts the donation of the Real Property from Donor to the City pursuant to Minnesota Statutes § 465.03. 2. The City, pursuant to Minn. Stat. §462.385, sub. 4b(c) and Fridley Subdivision Code §211.03(2) hereby finds that enforcement of the statutory prohibition on recording the conveyance of unplatted land will create an unnecessary hardship and that failure to comply does not interfere with the purpose of the subdivision regulations, and the City hereby waives compliance with the subdivision regulations and authorizes the conveyance of the Real Property legally described above to be recorded. 3. That the Mayor and City Clerk are authorized to execute the Donation Agreement attached hereto as Exhibit A. 4. That the Mayor and City Clerk are authorized to execute the Access Easement Agreement attached hereto as Exhibit B. 5. That the City Attorney (or an Assistant City Attorney) is hereby authorized to execute any closing documents on behalf of the City at the closing of the donation of the Real Property from the Donor to the City. Passed by at least a two-thirds majority vote of the City Council of Fridley this 26th day of November, 2018. Scott J. Lund, Mayor ATTEST: Deb Skogen, City Clerk 2 98 Exhibit A Donation Agreement 3 DONATION AGREEMENT BY AND BETWEEN RALCORP FROZEN BAKERY PRODUCTS,INC. (DONOR) AND THE CITY OF FRIDLEY (DONEE) FOR THE DONATION OF APPROXIMATELY 1.33 ACRES OF PROPERTY LOCATED IN THE CITY OF FRIDLEY,ANOKA COUNTY,MINNESOTA DONOR: DONEE: Ralcorp Frozen Bakery Products, Inc. City of Fridley 2021 Spring Road 6431 University Avenue NE Oak Brook, IL 60523 Fridley, MN 55432 -1- DONATION AGREEMENT THIS DONATION AGREEMENT ("Agreement") is made this 26th day of November, 2018 (the "Effective Date") by and between Ralcorp Frozen Bakery Products, Inc., a Delaware corporation("Donor")and the City of Fridley,a Minnesota municipal corporation("Donee"). WHEREAS, Donor and Donee are parties to that certain Agreement for the Construction of Specific Stormwater System Improvements in the Oak Glen Creek Subwatershed, City of Fridley Projects 17-446 and 17-516,dated September 19,2017(the"Stormwater System Agreement"); WHEREAS, the final paragraph of Section VIII of the Stormwater System Agreement provides as follows: If, at a future time, Treehouse [Ralcorp Frozen Bakery Products, Inc.] desires to convey fee title of the permanent easement area to the City, the City agrees to accept the conveyance, so long as Treehouse is lawfully possessed of the land and has good and lawful right and power to convey it, it is free of mortgages and liens and subject only to encumbrances deemed acceptable by the City in its sole discretion. WHEREAS, Donor desires to convey fee title of the permanent easement area to Donee; and WHEREAS, Donor and Donee desire to enter into this Agreement to facilitate such transaction; NOW, THEREFORE, subject to the covenants, warranties, representations and mutual consideration herein contained,the parties hereby agree as follows: SECTION 1. DEFINITIONS. Capitalized terms used in this Agreement that are not otherwise defined herein shall have the meanings assigned to such terms as set forth on Exhibit A attached hereto and incorporated herein. SECTION 2. DONATION OF PROPERTY. Donor agrees to donate and convey fee title to the Property to Donee, and Donee agrees to accept such donation, subject to the terms and conditions in this Agreeement. SECTION 3. DUE DILIGENCE DOCUMENTS. Prior to the Closing Date, Donor shall deliver to Donee copies of the following information and documents that are in Donor's possession,to Donor's actual knowledge: a.) A copy of any written contracts (including service contracts), agreements and warranties that will affect the Property after the Closing Date. b.) A copy of all permits issued to Donor that affect the Property, other than permits issued by Donee. -2- c.) A copy of any environmental reports or environmental permits concerning the Property in the possession or reasonable control of Donor to the extent received by Donor within the last five years. d.) A copy of any existing survey of the Property. Donor has no further obligation to pay for or to obtain any additional surveys of the Property. Donee, at its expense, may obtain any additional surveys. SECTION 4. INSPECTION. During the Due Diligence Period, Donee, at Donee's sole cost and expense, may enter upon the Property and conduct tests, inspections, surveys and studies (including, without limitation, soil, environmental, physical, mechanical and structural) which Donee may deem appropriate to determine the suitability of the Property for Donee's intended use. In connection with any entry by Donee, or its agents, employees or contractors onto the Property, Donee shall give Donor reasonable advance notice of such entry and shall conduct such entry and any inspections in connection therewith so as to reasonably minimize, to the greatest extent reasonably possible, interference with the Property and otherwise in a manner reasonably acceptable to Donor. At least 48 hours prior to any entry to perform any on-site testing, Donee shall give Donor written notice thereof, including the identity of the company or persons who will perform such testing and the proposed scope of the testing. Donee will have the opportunity to conduct a Phase I Environmental Assessment prior to Closing. Donor agrees to cooperate in the preparation of the Phase I Environmental Assessment and to accurately respond to any questions and inquiries that are posed to Donor relating to preparation of such Phase I Environmental Assessment. Donor agrees to make the Property available for on-site and field inspections. Notwithstanding any provision herein to the contrary, Donee shall not conduct a Phase II Environmental Assessment without Donor's prior written consent, in Donor's sole discretion. Donee shall maintain, and shall insure that its contractors maintain, at least one million dollars ($1,000,000) of public liability and property damage insurance to insure against the liability of Donee and its agents, employees or contractors, arising out of any entry or inspections of the Property pursuant to the provisions hereof, and Donee shall provide Donor with reasonable evidence of such insurance coverage upon request by Donor. Donee shall indemnify, defend and hold Donor harmless from and against any costs, damages, liabilities, losses, expenses, liens or claims (including, without limitation, reasonable attorneys' fees) to the extent arising out of or relating to any entry on the Property by Donee, its agents, employees or contractors in the course of performing the inspections, testing or inquiries provided for in this Agreement. The foregoing indemnity shall survive the termination of this Agreement. Donee shall have until the last day of the Due Diligence Period to terminate this Agreement for any reason by providing written notice of termination to Donor. SECTION 5. AS-IS, WHERE IS. Donee hereby expressly acknowledges that it has or will have, prior to the end of the Due Diligence Period, thoroughly inspected and examined the -3- Property to the extent deemed necessary by the Donee in order to enable the Donee to evaluate whether or not to accept the donation of the Property. Donee represents that it is relying solely on its own expertise and that of Donee's consultants, and that Donee will conduct such inspections and investigations of the Property, including, but not limited to, the physical and environmental conditions thereof, and shall rely upon same,and, upon closing, shall assume the risk of any adverse matters, including, but not limited to, adverse physical and environmental conditions, that may not have been revealed by Donee's inspections and investigations. Donee further acknowledges and agrees that Donee is acquiring the Property on an "as is", "where is" and "with all faults" basis, without representations, warranties or covenants, express or implied, of any kind or nature, except for Donor's express warranties contained in this Agreement. Donee hereby assumes all risk and liability (and agrees that Donor shall not be liable for any special, direct, indirect, consequential or other damages) resulting or arising from or relating to the ownership, use, condition, location, maintenance,repair, or operation of the Property after the Closing. SECTION 6. TITLE EXAMINATION. Donor, at its sole expense, has obtained a title insurance commitment covering the Property, including searches covering bankruptcies, state and federal judgments and tax liens, evidencing the Donor's title to the Property ("Title Commitment"). A copy of the Title Commitment is attached hereto as Exhibit B. a.) For a period of ten(10)days after the Effective Date, Donee shall be allowed to examine the Title Commitment and deliver any objections ("Title Objections") thereto. For a period of ten (10) days after Donee's receipt of any update or supplement to the Title Commitment, Donee shall be allowed to examine the same and deliver any objections to any matters not previously disclosed in the Title Commitment. Title Objections not made in writing within the applicable ten (10) day period shall be deemed to be waived by Donee and, therefore, Permitted Encumbrances. b.) If any objections are so made, Donor shall be allowed thirty (30) days after receipt of such written objections to make such title marketable. c.) If said title is not marketable and is not made so within thirty(30) days from the date of delivery of the written objections thereto as above provided, then Donee shall have the right (a) to terminate this Agreement upon notice given to Donor or (b)to waive such objections and proceed to Closing. SECTION 7. CONDITIONS PRECEDENT TO CLOSING. The obligations of each party to close the transaction contemplated by this Agreement are subject to the satisfaction, at or before the Closing Date, of the following conditions. a.) ACCURACY OF REPRESENTATIONS. The representations, warranties, covenants and agreements of the other party contained in this Agreement shall be true in all material respects at and as of the Closing Date as though such representations, warranties, covenants and agreements were made at and as of the Closing Date. -4- b.) PERFORMANCE. The other party shall have performed and complied with all agreements and conditions required by this Agreement to be performed or complied with prior to or at the Closing Date. c.) ABSENCE OF LITIGATION. No action or proceeding by or before any court or other governmental body shall have been instituted or threatened pertaining to any transaction contemplated by this Agreement or its consummation or the transfer or sale of the Property. d.) APPROVAL OF DOCUMENTS. The form and substance of all certificates, instruments, opinions and other documents delivered by one party to another under this Agreement shall be satisfactory in all reasonable respect to the party to receive the document and its counsel. Each party may waive any or all of the conditions which are included herein for its benefit in whole or in part, provided, however, that no such waiver of a condition shall constitute a waiver by such party of any of its other rights or remedies, at law or in equity, if the other party shall be in default of any of its representations, covenants, indemnifications, warranties or agreements under this Agreement. If any conditions precedent to closing are not satisfied or waived by both parties, then either party by written notice to the other may cancel this Agreement; if the Agreement is so cancelled,the parties shall execute a written cancellation of this Agreement. SECTION 8. CLOSING. Subject to performance by the parties of this Agreement, the Closing shall occur on the Closing Date at the Closing Location. The parties shall execute and deliver the Closing Documents at or prior to Closing, all in form and content reasonably satisfactory to both parties. Donor shall deliver possession of the Property to Donee on the Closing Date. SECTION 9. PRORATIONS. Donor and Donee agree to the following prorations and allocation of costs regarding this Agreement: a.) Title Insurance. Donor will pay all costs of the issuance of the Title Commitment, the fees charged by the Title Company for any escrow required regarding Donee's Title Objections, the premium for an owner's policy of title insurance and any premiums required for the issuance of endorsements necessary to cure Title Objections. b.) Closing Fees. Donor and Donee will each pay one half(1/2) of any closing fee or charge imposed by the Title Company. c.) Real Estate Taxes. Donor shall pay all real estate taxes due and payable prior to the year of closing. Real estate taxes due and payable in the year of closing and attributable to the Property shall be prorated between Donor and Donee based -5- on the Closing Date. (The calculation of real estate taxes attributable to the Property shall be based on the area of the Property, 1.33 acres, in proportion to the estimated area of the tax parcel that includes the Property and additional land, Anoka County Parcel Identification Number 10-30-24-14-0058, 2.42 acres.) Donee shall be responsible for all real estate taxes due and payable following the year of closing. Donor does not make any representation concerning the amount of real estate taxes which will be assessed against the Property subsequent to the Closing Date. d.) Special Assessments. Donor agrees to pay all assessments levied before the date of this Agreement. Donee shall be responsible for all assessments levied by Donee or any other governmental entity on or after the date of this Agreement. e.) Recording Fees. Donor will pay any recording fees in connection with the release of any mortgages, liens, encumbrances and security interests against the Property that are not being assumed by Donee. Donor shall also pay any deed tax due in connection with the sale of the Property pursuant to applicable State statutes. Donee shall pay the recording fee in connection with the recording of the Limited Warranty Deed. f.) Attorneys' Fees. Each of the parties will pay its own attorneys' fees,except that a party defaulting under this Agreement or any document referenced in this Agreement will pay the reasonable attorneys' fees and court costs incurred by the non-defaulting party to enforce its rights hereunder. SECTION 10. DONOR'S WARRANTIES. Donor represents and warrants to Donee as of the Effective Date and the Closing Date as follows: a.) AUTHORITY. Donor has all requisite power and authority to own, use and sell the Property. Donor has the right, power, legal capacity and authority to enter into and perform the Donor's obligations under this Agreement, and no approvals or consents of any persons or entities are necessary. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not, violate any indenture, mortgage, lease, deed of trust, agreement, arrangement, license,order,judgment or decree. b.) NO DEFAULT. Donor is not a party to or bound by any mortgage, lien, lease, agreement, instrument, order, judgment or decree which would prohibit the execution or performance of this Agreement by Donor or prohibit any of the transactions provided for in this Agreement. c.) TITLE. At Closing Date, Donor will have good and marketable title pursuant to the laws of the State of Minnesota to the Property to be conveyed hereunder, subject only to the Permitted Encumbrances. On the Closing Date, the Property will not be subject to a contract or other agreement of sale or subject to security interests, mortgages, encumbrances, liens (including income, personal -6- property and other tax liens) or ofd sets, claims, reductions or charges of any kind or character other than the Permitted Encumbrances. d.) LITIGATION. There is no suit, action, arbitration or legal, administrative or other proceeding or governmental investigation pending or, to the actual knowledge of Donor, threatened, against or affecting Donor with respect to the Property. e.) NO CONDEMNATION NOTICE. Donor has not received any notice of condemnation proceedings against the whole or any part of the Property. f.) NO WASTE. Except as identified in the Environmental Reports, the Property, to Donor's actual knowledge, is free of Waste and Hazardous Substances except as may have been deposited on the Property by the Donee's stormwater system. Except as identified in the Environmental Reports, to Donor's actual knowledge, the soil and ground of the Property are free from any spills, deposits, contaminations or seepage of Waste and Hazardous Substances and free from any Release of any Waste and Hazardous Substances except as may have been deposited on the Property by the Donee's stormwater system. g.) NO PETROLEUM LEAKAGE. Except as identified in the Environmental Reports, to Donor's actual knowledge with respect to petroleum, natural gas, natural gas liquids, liquefied natural gas, and synthetic gas usable for fuel or mixtures thereof, the Property is free of such liquids, gases and substances and have not been used for the generation, treatment or disposal thereof except as may have been deposited on the Property by the Donee's stormwater system. Except as identified in the Environmental Reports, to Donor's actual knowledge, the soil and ground of the Property are free from any spills, deposits, contamination or seepage thereof and free from any Release of any Petroleum except as may have been deposited on the Property by the Donee's stormwater system. h.) NO BOUNDARY DISPUTES. Except for encroachments and other boundary issues that may be shown on the Survey and except for the encroachments identified in the Permitted Encumbrances,to Donor's actual knowledge, there are no boundary disputes relating to the Property. i.) NO UNRECORDED AGREEMENTS. There are no unrecorded agreements, covenants, leases, rights of first refusal or options to purchase concerning the Property, except for agreements to which Donee is a party. j.) NO PRIVATE SEWAGE SYSTEMS OR WELLS. To Donor's actual knowledge,there are no private sewage systems or wells located on the Property. k.) NO METHAMPHETAMINE PRODUCTION. To Donor's actual knowledge, no methamphetamine production has occurred on the Property. -7- As used in this Agreement, "Donor's actual knowledge" shall mean the actual knowledge of Donor's Director of Real Estate, without duty of inquiry or investigation. Donor's representations and warranties shall survive the closing of the transaction contemplated by this Agreement and shall not merge into the deed delivered at Closing. Donor's representations and warranties shall be deemed remade as of the Closing Date and,as so remade, shall survive the Closing Date for a period of six(6) months, and any claim arising out of a breach of any representation or warranty in this Agreement or any document referenced in this Agreement not asserted in an action filed and served on or before the expiration of such six(6) month period shall be barred and deemed waived. SECTION 11. DONEE'S WARRANTIES. Donee represents and warrants to Donor as of the Effective Date and the Closing Date as follows: a.) AUTHORITY. Donee has the right, power, legal capacity and authority to enter into and perform its obligations under this Agreement. b.) NO OTHER APPROVALS NECESSARY. The Fridley City Council has approved the acceptance of the donation of the Property by Donor pursuant to a City Council Resolution, and no other approvals or consents are necessary in connection with this Agreement. Donee has taken all necessary action to authorize the execution of this Agreement and the consummation of the transactions contemplated hereby. c.) STORMWATER DRAINAGE. Pursuant to the Stormwater System Agreement, upon development of currently undeveloped property in Lot 3, Block 4, Commerce Park, according to the recorded plat thereof, Anoka County, Minnesota ("Undeveloped Property"), Donor, its successors and assigns shall be permitted to discharge stormwater from the Undeveloped Property to the stormwater pond located upon the Property to meet the stormwater management requirements of said development in accordance with City, state and local requirements. Donee further agrees that before, during and after the development of the Undeveloped Property, Donor, its successors and assigns shall have the right to drain stormwater from the Undeveloped Property into and through the City's storm water management, drainage, and treatment systems and improvements, stormwater conveyances, and components thereof located upon the Property in accordance with city, state and local requirements, consistent with the rights provided in that certain Permanent Storm Water Ponding, Drainage and Access Easement dated October 9, 2017 and filed with the Anoka County Registrar of Titles on November 17, 2017 as Document No. 2186633.001 (the"Permanent Easement Agreement"). d.) PERVIOUS SURFACE AND GREEN SPACE. Pursuant to the -8- Stormwater System Agreement, upon any future development of Donor's Property, the Property shall be counted as pervious surface and green space in any development calculations. Donee's representations and warranties shall survive the closing of the transaction contemplated by this Agreement and shall not merge into the deed delivered at Closing. SECTION 12. MISCELLANEOUS. a.) Headings. The headings in this Agreement are for convenience only and are not part of this Agreement and do not in any way limit or amplify the terms and provisions hereof. It is understood and agreed that this Agreement has been made following negotiation by the parties and it is, therefore, not to be construed against any party because of draftsmanship. b.) Modifications. All modifications to this Agreement must be in writing and signed by the parties hereto. c.) Severability. The invalidity or unenforceability of any term or terms of this Agreement shall not invalidate, make unenforceable or otherwise affect any other term of this Agreement, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted, and in such event, the remaining terms of this Agreement shall remain in full force and effect. d.) Governing Law. This Agreement shall be governed by and be construed in accordance with the laws of the State of Minnesota. e.) Computation of Time. In computing any period of time pursuant to this Agreement, the day of the act or event from which the designated period of time begins to run will not be included. The last day of the period so computed will be included, unless it is a Saturday, Sunday or legal holiday, in which event the period runs until the end of the next day which is not a Saturday, Sunday or legal holiday. f.) Time of the Essence. All times, wherever specified herein for the performance by Donor or Donee of their respective obligations hereunder, are of the essence of this Agreement. g.) Assignment. Neither party shall be entitled to assign or convey any interest in this Agreement to any third party, without first obtaining the prior written consent of the other party. h.) Counterpart Signature. This Agreement may be executed simultaneously 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. -9- i.) Effect of Cancellation. If this Agreement is cancelled by any party for any reason, all prior agreements between the parties, including but not limited to the Stormwater System Agreement and the Permanent Easement, shall remain in full force and effect. SECTION 13. NOTICES. Any notices hereunder shall be deemed sufficiently given by one party to the other if in writing and if and when delivered or tendered either in person or by depositing it in the United States mail in a sealed envelope, by certified mail, return receipt requested,with postage and postal charges prepaid,addressed as follows: If to Donor: Ralcorp Frozen Bakery Products, Inc. 2021 Spring Road, Suite 600 Oak Brook, IL 60523 Michael D. Klemm Hellmuth&Johnson, PLLC 8050 West 78th Street Edina, MN 55439 If to Donee: Wally Wysopal, City Manager City of Fridley 6431 University Avenue NE Fridley, MN 55432 Jay P.Karlovich, City Attorney 633 South Concord Street, Suite 400 South St. Paul,MN 55075 or to such other address as the party addressed shall have previously designated by notice given in accordance with this Section. Notices shall be deemed to have been duly given on the date of service if served personally on the party to whom notice is to be given, or on the third day after mailing if mailed as provided above, provided, that a notice not given as above shall, if it is in writing, be deemed given if and when actually received by a party. SECTION 14. AMENDMENT AND WAIVER. The parties hereto may by mutual written agreement amend this Agreement in any respect. Any party hereto may extend the time for the performance of any of the obligations of another, waive any inaccuracies in representations by another contained in this Agreement or in any document delivered pursuant hereto which inaccuracies would otherwise constitute a breach of this Agreement, waive compliance by another with any of the covenants contained in this Agreement,waive performance of any obligations by the other or waive the fulfillment of any condition that is precedent to the performance by the party so waiving of any of its obligations under this Agreement. Any agreement on the part of any party for any such amendment,extension or waiver must be in writing. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provisions, whether or not -10- similar, nor shall any waiver constitute a continuing waiver. SECTION 15. FORBEARANCE OF MARKETING. Donor agrees that from the Effective Date through the last day of the Due Diligence Period, Donor will not market the Property or offer the Property for sale to any party other than Donee. [the remainder of this page has been intentionally left blank] -11- DONOR: RALCORP FROZEN BAKERY PRODUCTS,INC. By: Its: DONEE: CITY OF FRIDLEY By: Scott J.Lund Its:Mayor ATTEST: By: Deb Skogen Its: City Clerk -12- EXHIBIT A DEFINITIONS 1. CLOSING. "Closing" shall mean the closing of the transaction contemplated by this Agreement. 2. CLOSING DATE. "Closing Date" shall mean December 20, 2018, unless otherwise mutually agreed by Donor and Donee. 3. CLOSING DOCUMENTS. "Closing Documents" shall mean and comprise the following: a.) A Limited Warranty Deed conveying marketable title to the Property to Donee, subject to the Permitted Encumbrances. b.) An Access Easement Agreement by Donor in favor of Donee granting a 50-foot wide easement over a portion of the Undeveloped Property to provide vehicular and pedestrian ingress and egress between the Property and Commerce Lane NE as reasonably necessary in connection with the construction, maintenance, repair, replacement and operation of the stormwater improvements located upon the Property, in a form to be provided by Donor. c.) An affidavit by Donor of no judgments,no tax liens and no unrecorded interests. d.) An affidavit by Donee that there has been no labor or materials furnished for which mechanic liens can be filed with respect to any labor or materials ordered by Donee. e.) A Well Disclosure Certificate or a well disclosure statement on the Limited Warranty Deed,as applicable. f.) A "bring down certificate" by Donor certifying that the warranties and representations of Donor contained in this Agreement are true in all respects at and as of the Closing Date as though such representations, warranties, covenants and agreements were made at and as of the Closing Date. g.) A Closing Statement prepared by Title Company to be executed by Donor, Donee, and Title Company at the Closing that accurately describes the economic terms of transaction described this Agreement. h.) All other documents affecting title to and possession of the Property and necessary to transfer or assign the same to Donee. 4. CLOSING LOCATION. "Closing Location" shall mean the office of DCA Title located at 7373 147th Street West, Suite 161,Apple Valley, MN 55124. 5. CONSTRUCTION DEBRIS. "Construction Debris" means construction debris as defined by Minn. Stat. § 115A.03. 6. CONTAMINANTS. "Contaminants" means contaminants as defined by Minn. Stat. § 115B.02. 7. DEMOLITION DEBRIS. "Demolition Debris" means solid waste resulting from the demolition of buildings, roads, and other man-made structures including concrete, brick, bituminous concrete,untreated wood,masonry,glass,trees,rock,and plastic building parts. 8. DUE DILIGENCE PERIOD. "Due Diligence Period" shall mean a period of thirty(30)days from and after the Effective Date. 9. ENVIRONMENTAL LAWS. "Environmental Laws" shall mean all federal laws and regulations that protect or regulate the environment, including,but not limited to, the Clean Air Act, 42 U.S.C. § 7401 et seq.; the Clean Water Act 33 U.S.C. § 1251 et seq., and the Water Quality Act of 1987; the Federal Insecticide Fungicide, and Rodenticide Act ("FIFRA"), 7 U.S.C. § 136 et seq., the Marine Protection Research, and Sanctuaries Act, 33 U.S.C. § 1401 et seq.; the National Environmental Policy Act, 42 U.S.C. § 4321 et seq.; the Noise Control Act, 42 U.S.C. § 4901 et seq.; the Occupational Safety and Health Act, 29 U.S.C. § 651 et seq.; the Resource Conservation and Recovery Act ("RCRA"), 42 U.S.C. § 6901 et seq. as amended by the Hazardous and Solid Waste Amendments of 1984; the Safe Drinking Water Act, 42 U.S.C. § 3001 et seq.; the Comprehensive Environmental Response, Compensation and Liability Act("CERCLA"), 42 U.S.C. § 9601 et seq. as amended by the Superfund Amendments and Reauthorization Act, the Emergency Planning and Community Right-To-Know Act, and Radon Gas and Indoor Air Quality research Act;the Toxic Substances Control Act("TSCA"), 15 U.S.C. § 2601 et seq.;the Atomic Energy Act, 42 U.S.C. § 2011 et seq., and the Nuclear Waste Policy Act of 1982,42 U.S.C. § 2011 et seq., all as may be amended,with implementing regulations and guidelines. Environmental Laws shall also include The Minnesota Environmental Response and Liability Act ("MERLA") and state, regional, county, municipal, and other local laws, regulations, and ordinances insofar as they are equivalent or similar to the federal laws recited above or purport to regulate Waste or Petroleum. 10. ENVIRONMENTAL REPORTS. "Environmental Reports" means any report produced to the Donee as the result of an environmental site assessment conducted by the Donee. 11. HAZARDOUS SUBSTANCE. "Hazardous Substance" means any of the following: a.) Any commercial chemical designated pursuant to the Federal Water Pollution Control Act,under United States Code,title 33, Section 1321(b)(2)(A). b.) Any hazardous air pollutant listed pursuant to the Clean Air Act, under United States Code,title 42, section 7412. c.) Any hazardous substance, pollutant or contaminant regulated under the Comprehensive Environmental Response Compensation and Liability Act as amended, 42 U.S.C. 9601 et. seq. (CERCLA); and hazardous substance, pollutant or contaminant regulated under similar Minnesota environmental laws. d.) Any hazardous waste under Minnesota laws. e.) Pesticides regulated under the Federal Insecticide, Fungicide and Rodenticide Act,as amended, 7 U.S.C. Section 136 et. seq. (FIFRA). f.) Asbestos, polychlorinated biphenyls (PCBs), toxic substances, and other substances regulated under the Toxic Substances Control Act, as amended, 15 U.S.C. section 2601 et. seq. (TSCA). g.) Source material, special nuclear material, by product materials, any other radioactive materials or radioactive wastes however produced, regulated under the Atomic Energy Act, as amended, 42 U.S.C. section 2011 et. seq. or the Nuclear Waste Policy Act of 1982,as amended, 42 U.S.C. section 10101 et. seq. h.) Industrial process and pollution control wastes, which are hazardous within the meaning of the Resource Conservation And Recovery Act, as amended 42 U.S.C. Section 6901 et. seq. (RCRA). i.) Any hazardous material under the Hazardous Materials Transportation Act, 49 USCS Appx. Section 1801 et. seq. j.) Any hazardous material listed in Code of Federal Regulation Title 49, Section 172.101. k.) Any pollutant or contaminant as defined by 42 U.S.C. Section 9601. 12. HAZARDOUS WASTE. "Hazardous Waste" means hazardous waste as defined by Minn. Stat. § 115B.02. 13. INDUSTRIAL SOLID WASTE. "Industrial Solid Waste" means industrial waste as defined by Minn. Stat. § 115A.03. 14. MIXED MUNICIPAL SOLID WASTE. "Mixed Municipal Solid Waste" means mixed municipal solid waste as defined by Minn. Stat. § 115A.03. 15. PERMITTED ENCUMBRANCES. "Permitted Encumbrances" shall mean and comprise the following: a.) Building and zoning laws, ordinances, state and federal regulations. b.) Minerals and mineral rights reserved by the State of Minnesota. c.) Any defects or encumbrances on the Property to which Donee does not submit a written Title Objection within the time allowed by this Agreement, or any defect or encumbrance that is waived by Donee in accordance with the terms of this Agreement. 16. PETROLEUM. "Petroleum"means any of the following: a.) Gasoline. b.) Fuel oil. c.) Kerosene. d.) Any petroleum distillate. e.) Any petroleum residual. f.) Diesel fuel. g.) Oil. h.) Ethanol. 17. POLLUTANTS. "Pollutants" means pollutants as defined by Minn. Stat. § 115B.02. 18. PROPERTY. "Property" shall mean that certain 1.33 acres of land located in the City of Fridley, County of Anoka, Minnesota legally described on the title commitment attached as Exhibit B, which exhibit is incorporated by reference. The Property shall also include all of the right, title and interest of the owner of the property in and to any easements, rights of way, privileges, appurtenances, and right to the same belonging to or inuring to the benefit of the Property. 19. RELEASE. "Release" means any spilling, leakage, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping,or disposing into the environment of any Waste, Hazardous Substance, Petroleum or pollutant or contaminant as defined by 42 U.S.C. Section 9601. 20. SEWAGE SLUDGE. "Sewage Sludge"means sewage sludge as defined by Minn. Stat. § 115A.03. 21. SOLID WASTE. "Solid Waste" means solid waste as defined by Minn. Stat. § 115A.03. 22. TITLE COMPANY. "Title Company"means DCA Title. 23. WASTE. "Waste"means any and all of the following: a.) Hazardous substances. b.) Hazardous waste. c.) Pollutants. d.) Contaminants. e.) Construction debris. f.) Demolition debris. g.) Industrial solid waste. h.) Mixed municipal solid waste. i.) Solid waste. j.) Sewage sludge. EXHIBIT B TITLE COMMITMENT ALTA Commitment for Title Insurance * * * * * * * Issued By Old Republic National Title Insurance Company * * ** ** NOTICE IMPORTANT-READ CAREFULLY: THIS COMMITMENT IS AN OFFER TO ISSUE ONE OR MORE TITLE INSURANCE POLICIES.ALL CLAIMS OR REMEDIES SOUGHT AGAINST THE COMPANY INVOLVING THE CONTENT OF THIS COMMITMENT OR THE POLICY MUST BE BASED SOLELY IN CONTRACT. THIS COMMITMENT IS NOT AN ABSTRACT OF TITLE, REPORT OF THE CONDITION OF TITLE, LEGAL OPINION, OPINION OF TITLE,OR OTHER REPRESENTATION OF THE STATUS OF TITLE.THE PROCEDURES USED BY THE COMPANY TO DETERMINE INSURABILITY OF THE TITLE, INCLUDING ANY SEARCH AND EXAMINATION,ARE PROPRIETARY TO THE COMPANY,WERE PERFORMED SOLELY FOR THE BENEFIT OF THE COMPANY,AND CREATE NO EXTRACONTRACTUAL LIABILITY TO ANY PERSON, INCLUDING A PROPOSED INSURED. THE COMPANY'S OBLIGATION UNDER THIS COMMITMENT IS TO ISSUE A POLICY TO A PROPOSED INSURED IDENTIFIED IN SCHEDULE A IN ACCORDANCE WITH THE TERMS AND PROVISIONS OF THIS COMMITMENT. THE COMPANY HAS NO LIABILITY OR OBLIGATION INVOLVING THE CONTENT OF THIS COMMITMENT TO ANY OTHER PERSON. COMMITMENT TO ISSUE POLICY Subject to the Notice;Schedule B,Part I—Requirements;Schedule B,Part II—Exceptions;and the Commitment Conditions,Old Republic National Title Insurance Company,a Florida Corporation(the"Company"),commits to issue the Policy according to the terms and provisions of this Commitment.This Commitment is effective as of the Commitment Date shown in Schedule A for each Policy described in Schedule A,only when the Company has entered in Schedule A both the specified dollar amount as the Proposed Policy Amount and the name of the Proposed Insured. If all of the Schedule B,Part I—Requirements have not been met within 6 months after the Commitment Date,this Commitment terminates and the Company's liability and obligation end. This page is only a part of a 2016 ALTA Commitment for Title Insurance. This Commitment is not valid without the Notice;the Commitment to Issue Policy;the Commitment Conditions;Schedule A;Schedule B,Part I–Requirements;and Schedule B,Part 11–Exceptions. Issued through the Office of OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY A Stock Company 400 Second Avenue South,Minneapolis,Minnesota 55401 (612)371-1111 MA�wr.ri� ABy President Attest .64 W.4 Secretary ORT Form 4690 8-1-16 COMMITMENT CONDITIONS 1.DEFINITIONS (a) "Knowledge"or"Known":Actual or imputed knowledge,but not constructive notice imparted by the Public Records. (b) "Land":The land described in Schedule A and affixed improvements that by law constitute real property.The term"Land"does not include any property beyond the lines of the area described in Schedule A,nor any right,title,interest,estate,or easement in abutting streets,roads, avenues,alleys,lanes,ways,or waterways,but this does not modify or limit the extent that a right of access to and from the Land is to be insured by the Policy. (c) "Mortgage":A mortgage,deed of trust,or other security instrument,including one evidenced by electronic means authorized by law. (d) "Policy": Each contract of title insurance, in a form adopted by the American Land Title Association, issued or to be issued by the Company pursuant to this Commitment. (e) "Proposed Insured":Each person identified in Schedule A as the Proposed Insured of each Policy to be issued pursuant to this Commitment. (f) "Proposed Policy Amount":Each dollar amount specified in Schedule A as the Proposed Policy Amount of each Policy to be issued pursuant to this Commitment. (g) "Public Records":Records established under state statutes at the Commitment Date for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without Knowledge. (h) "Title":The estate or interest described in Schedule A. 2. If all of the Schedule B,Part I—Requirements have not been met within the time period specified in the Commitment to Issue Policy,this Commitment terminates and the Company's liability and obligation end. 3. The Company's liability and obligation is limited by and this Commitment is not valid without: (a) the Notice; (b) the Commitment to Issue Policy; (c) the Commitment Conditions; (d) Schedule A; (e) Schedule B,Part I—Requirements; (f) Schedule B,Part II—Exceptions;and (g) a counter-signature by the Company or its issuing agent that may be in electronic form. 4. COMPANY'S RIGHT TO AMEND The Company may amend this Commitment at any time.If the Company amends this Commitment to add a defect,lien,encumbrance,adverse claim,or other matter recorded in the Public Records prior to the Commitment Date,any liability of the Company is limited by Commitment Condition 5.The Company shall not be liable for any other amendment to this Commitment. 5. LIMITATIONS OF LIABILITY (a) The Company's liability under Commitment Condition 4 is limited to the Proposed Insured's actual expense incurred in the interval between the Company's delivery to the Proposed Insured of the Commitment and the delivery of the amended Commitment,resulting from the Proposed Insured's good faith reliance to: (i) comply with the Schedule B,Part I—Requirements; (ii) eliminate,with the Company's written consent,any Schedule B,Part II—Exceptions;or (iii) acquire the Title or create the Mortgage covered by this Commitment. (b) The Company shall not be liable under Commitment Condition 5(a)if the Proposed Insured requested the amendment or had Knowledge of the matter and did not notify the Company about it in writing. (c) The Company will only have liability under Commitment Condition 4 if the Proposed Insured would not have incurred the expense had the Commitment included the added matter when the Commitment was first delivered to the Proposed Insured. (d) The Company's liability shall not exceed the lesser of the Proposed Insured's actual expense incurred in good faith and described in Commitment Conditions 5(a)(i)through 5(a)(iii)or the Proposed Policy Amount. (e) The Company shall not be liable for the content of the Transaction Identification Data,if any. (f) In no event shall the Company be obligated to issue the Policy referred to in this Commitment unless all of the Schedule B,Part(— Requirements have been met to the satisfaction of the Company. (g) In any event,the Company's liability is limited by the terms and provisions of the Policy. This page is only a part of a 2016 ALTA Commitment for Title Insurance. This Commitment is not valid without the Notice;the Commitment to Issue Policy;the Commitment Conditions;Schedule A;Schedule B,Part I–Requirements;and Schedule B,Part II–Exceptions. ORT Form 4690 8-1-16 6. LIABILITY OF THE COMPANY MUST BE BASED ON THIS COMMITMENT (a) Only a Proposed Insured identified in Schedule A,and no other person,may make a claim under this Commitment. (b) Any claim must be based in contract and must be restricted solely to the terms and provisions of this Commitment. (c) Until the Policy is issued,this Commitment,as last revised,is the exclusive and entire agreement between the parties with respect to the subject matter of this Commitment and supersedes all prior commitment negotiations,representations,and proposals of any kind,whether written or oral, express or implied,relating to the subject matter of this Commitment. (d) The deletion or modification of any Schedule B,Part II—Exception does not constitute an agreement or obligation to provide coverage beyond the terms and provisions of this Commitment or the Policy. (e) Any amendment or endorsement to this Commitment must be in writing and authenticated by a person authorized by the Company. (f) When the Policy is issued,all liability and obligation under this Commitment will end and the Company's only liability will be under the Policy. 7. IF THIS COMMITMENT HAS BEEN ISSUED BY AN ISSUING AGENT The issuing agent is the Company's agent only for the limited purpose of issuing title insurance commitments and policies.The issuing agent is not the Company's agent for the purpose of providing closing or settlement services. 8. PRO-FORMA POLICY The Company may provide,at the request of a Proposed Insured,a pro-forma policy illustrating the coverage that the Company may provide.A pro- forma policy neither reflects the status of Title at the time that the pro-forma policy is delivered to a Proposed Insured,nor is it a commitment to insure. 9. ARBITRATION The Policy contains an arbitration clause.All arbitrable matters when the Proposed Policy Amount is$2,000,000 or less shall be arbitrated at the option of either the Company or the Proposed Insured as the exclusive remedy of the parties.A Proposed Insured may review a copy of the arbitration rules at http://www.alta.org/arbitration. This page is only a part of a 2016 ALTA Commitment for Title Insurance. This Commitment is not valid without the Notice;the Commitment to Issue Policy;the Commitment Conditions;Schedule A;Schedule B,Part I–Requirements;and Schedule B,Part 11–Exceptions. ORT Form 4690 8-1-16 Issuing Agent: DCA Title File No. 18-040016 RC Property Address: XXXX, Fridley, MN 55432 Revision No. 2 Schedule A ALTA COMMITMENT 1. Commitment Date: 7/29/2018 AT 7:30 A.M. 2. Policy to be issued: (a) 2006 ALTA Owner's Policy Proposed Insured: City of Fridley Proposed Policy Amount: $100,000.00 (b) 2006 ALTA Loan Policy Proposed Insured: Proposed Policy Amount: $ (c) ALTA Policy Proposed Insured: Proposed Policy Amount: $ 3. The estate or interest in the Land described or referred to in this Commitment is fee simple. 4. Title to the estate or interest in the Land is at the Commitment Date vested in: Lofthouse Bakery Products, Inc. 5. The Land is described as follows: That part of Lot 3, Block 4, Commerce Park, according to the recorded plat thereof, Anoka County, Minnesota, which lies east of a line beginning at a point on the north line of said Lot 3 being 205.00 feet east of the northwest corner of said Lot 3;thence southerly to a point on the south line of said Lot 3 being 125.00 feet east of the southwest corner of said Lot 3 and which lies northwesterly of the following described line: Commencing at the northeast corner of said Lot 3; thence North 89 degrees 55 minutes 02 seconds West, along the north line of said Lot 3, a distance of 537.88 feet to the point of beginning;thence South 00 degrees 22 minutes 42 seconds East a distance of 93.85 feet; thence South 30 degrees 58 minutes 03 seconds West a distance of 40.92 feet; thence South 73 degrees 57 minutes 03. seconds West, a distance of 129.69 feet;thence South 11 degrees 48 minutes 23 seconds West a distance of 102.57 feet;thence South 01 degree 22 minutes 32 seconds West a distance of 133.70 feet to the south line of said Lot 3 and said line there terminating. Except the south 25.00 feet thereof. Abstract Property. Non-residential (all other) This page is only a part of a 2016 ALTA Commitment for Title Insurance. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions;Schedule A; Schedule B, Part 1—Requirements; and Schedule B, Part II— ORT Form 4690 8-1-16 Exceptions. Old Republic National Title Insurance Company al.gal "ter, Authorized si ORT Form 4690 8-1-16 Schedule B-I ALTA COMMITMENT File No. 18-040016 RC Revision No. 2 Requirements All of the following Requirements must be met: 1. The Proposed Insured must notify the Company in writing of the name of any party not referred to in this Commitment who will obtain an interest in the Land or who will make a loan on the Land. The Company may then make additional Requirements or Exceptions. 2. Pay the agreed amount for the estate or interest to be insured. 3. Pay the premiums, fees, and charges for the Policy to the Company. 4. Documents satisfactory to the Company that convey the Title or create the Mortgage to be insured, or both, must be properly authorized, executed, delivered, and recorded in the Public Records. 5. Record a Certified copy of the Name Change from Lofthouse Bakery Products, Inc.to Ralcorp Frozen Bakery Products, Inc. 6. Warranty Deed from Ralcorp Frozen Bakery Products, Inc. to City of Fridley. 7. A party that is a Corporation must submit the following for review: a) Articles of Organization b) Proof of filing in the office of the Secretary of State and good standings c) Corporate Resolution Authorizing Sale or Purchase d) Corporate Resolution Authorizing ability to sign 8. Identification will be required from all parties required to sign documents at closing. 9. Provide DCA Title with a Well Disclosure Certificate or the conveyance documents must contain the following language: THE SELLER CERTIFIES THAT THE SELLER DOES NOT KNOW OF ANY WELLS ON THE DESCRIBED REAL PROPERTY. 10. Your attention is drawn to Standard Exception B. This exception may be waived upon receipt of information as to the identity of parties in possession. 11. Your attention is drawn to Standard Exception C (Mechanic's Liens). This exception will be waived upon receipt of the buyer's/seller's affidavit stating that no labor or materials have been furnished to the premises within the past 120 days. If any improvements have been made within the past 120 days, we require: A. A Sworn Construction Statement listing all subcontractors and companies from which supplies were purchased, showing the amount paid and/or owed. B. Lien Waivers from all subcontractors. C. Lien Waivers or satisfactory paid receipts from all companies from which supplies were purchased. To avoid delays in closing, this information must be given to us at least 3 business days prior to closing. 12. Standard Exception A (Survey Exception)will be waived if we are supplied with an ALTA survey certified to DCA Title and all issues raised by the survey are resolved to our satisfaction. ORT Form 4690 8-1-16 13. Inspection discloses vacant land. Your attention is drawn to Standard Exception(s) B and C. 14. DCA Title requires all proceeds to be "Collected Funds". Proceeds must be received by wire and credited to DCA Title's escrow bank account, before the closing can be completed and funds disbursed. 15.NOTE: Searches indicate there are no open Mortgages. Please notify DCA Title if this is incorrect. This page is only a part of a 2016 ALTA Commitment for Title Insurance. This Commitment is not valid without the Notice;the Commitment to Issue Policy;the Commitment Conditions;Schedule A;Schedule B, Part I—Requirements;and Schedule B, Part II— Exceptions. ORT Form 4690 8-1-16 Schedule B-II ALTA COMMITMENT File No: 18-040016 RC Revision No. 2 STANDARD EXCEPTIONS A. Facts which would be disclosed by a comprehensive survey of the premises described herein. B. Rights and claims of parties in possession. C. Mechanics', Contractors', or Materialmen's liens and lien claims, if any, where no notice appears of record. D. Easements, or claims of easements, not shown by the public records. Exceptions THIS COMMITMENT DOES NOT REPUBLISH ANY COVENANT, CONDITION, RESTRICTION, OR LIMITATION CONTAINED IN ANY DOCUMENT REFERRED TO IN THIS COMMITMENT TO THE EXTENT THAT THE SPECIFIC COVENANT, CONDITION, RESTRICTION, OR LIMITATION VIOLATES STATE OR FEDERAL LAW BASED ON RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION, GENDER IDENTITY, HANDICAP, FAMILIAL STATUS, OR NATIONAL ORIGIN. The Policy will not insure against loss or damage resulting from the terms and provisions of any lease or easement identified in Schedule A, and will include the following Exceptions unless cleared to the satisfaction of the Company: 1. Any defect, lien, encumbrance, adverse claim, or other matter that appears for the first time in the Public Records or is created, attaches, or is disclosed between the Commitment Date and the date on which all of the Schedule B, Part I—Requirements are met. 2. Taxes for the year 2018 in the amount of$9,223.47. First half taxes are paid. (Base Tax amount $9,223.47.) (Tax No. 10-30-24-14-0058.) Taxes for the year 2018 in the amount of$58,100.09. First half taxes are paid. (Base Tax amount $56,737.19.) (Tax No. 10-30-24-14-0060.)(Includes special assessments in the amount of$1,362.90.) NOTE: Anoka County tax records indicate property is non-homestead for taxes payable in the year 2018. (as to both Tax Nos.) NOTE: Taxes for the year 2017 and prior years are paid in full. (as to both Tax Nos.) NOTE: Minnesota property taxes are due on May 15th(first half) and October 15th(second half). NOTE: The above legal description constitutes a split of an existing tax parcel. Approval of the appropriate municipal offices for such a split to take place must be obtained and appear on the face of any instrument of conveyance or a certified copy of the resolution by the City must be submitted to the Company. NOTE: The taxes are currently assessed on the underlying legal description. An individual figure on a per parcel basis is not available as of the date of this commitment. (New Tax No. (Unavailable). ORT Form 4690 8-1-16 NOTE: The above described property is only a portion of the property covered by the Tax Parcel as charged in the Tax List. M.S.272.121 requires that the current years property tax on the whole parcel must be paid in full in order to transfer title to any portion of the whole parcel. NOTE: Levied and Pending Assessments will follow by endorsement. (as to both Tax Nos.) NOTE: No coverage is provided for municipal code compliance matters and fees including, but not limited to, utilities, right of way maintenance, water or sewer services, or fees for tree, weeds, grass and snow or garbage removal, police boarding, vacant building registration and zoning. 3. 25 foot Utility and Drainage Easement on South lot line(s), as shown on the recorded plat. 4. Permanent utility easement over the East 5 feet recorded in Book 735, page 603. 5. Electric Transmission Line Easement granted to Northern States Power Company recorded as Document No. 324811. 6. Electric Transmission Line Easement granted to Northern States Power Company recorded as Document No. 567222. 7. Electric Transmission Line Easement granted to Northern States Power Company recorded as Document No. 567223. 8. Modification of the above easement recorded as Document No. 1289733. 9. Easement taken by North Suburban Sanitary Sewer Authority by Final Certificate recorded as Document No. 964197 as amended by Document No. 989629. 10. Special Use Permit recorded as Document No. 961295. 11. Memorandum of Option and lease recorded as Document No. 1253421. 12. Amendment No. 1 to Memorandum of Option and Lease recorded as Document No. 1253422. 13.Notice of Exercise of Option recorded as Document No. 1277371. 14. Amendment No. 2 to Optional Lease Agreement recorded as Document No. 1289734. 15. Pipeline Easement granted to CenterPoint Energy Resources Corp. recorded as Document No. 2003418.002. 16. Final Certificate recorded as Document No. 2009163.001 (Parcel 103) 17. Agreement regarding Encroachment recorded as Document No. 2002235.013. 18. Agreement regarding Encroachment recorded as Document No. 2004350.010. 19. Agreement regarding Encroachment recorded as Document No. 2004533.001. 20. Permanent Storm Water Ponding Drainage and Access Easement recorded as Document No. 2186633.001. ORT Form 4690 8-1-16 21. Totinos Finer Foods, Inc. was the fee owner of that part of Lot 3 lying North of the South 54.70 feet and east of a line. The Pillsbury Company conveyed the property to Salus Real Estate, Inc. by deed dated October 30, 1991 recorded December 31, 1991 as Document No. 960744.No name change documentation is of record. 22. Deco Pac, Inc. f.k.a. McGlynn Bakeries, Inc. conveyed all of the property to McGlynn Bakeries, LLC by Quit Claim Deed dated December 31, 2000 recorded January 19, 2001 as Document No. 1545877. No name change documentation is of record. 23. NOTE: This Examination was made from our previous records and/or from the county records without the benefit of an updated Abstract of Title and/or Registered Property Certificate. DCA Title will not be responsible for the cost of updating the abstract/certificate. 24. NOTE: This Revision was prepared on August 20, 2018. 25. NOTE: To schedule a closing, please contact one of the following offices: Apple Valley: 952-432-5600; Mendota Heights: 651-455-4600; Hastings: 651-437-4900; Roseville: 651-203-1824 or Minneapolis: 612- 821-7591. 26. NOTE: If there are any questions concerning the exceptions on this commitment, please contact Darrell Jensen at 651-437-5600 ext. 241 or e-mail at d jensena,dcatitle.com. This page is only a part of a 2016 ALTA Commitment for Title Insurance. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions;Schedule A;Schedule B, Part I—Requirements;and Schedule B, Part II— Exceptions. sp ORT Form 4690 8-1-16 Exhibit B Access Easement Agreement 4 ACCESS EASEMENT AGREEMENT THIS ACCESS EASEMENT AGREEMENT ("Agreement") is made, executed and effective the day of , 2018, by and between Ralcorp Frozen Bakery Products, Inc., a Delaware corporation (hereinafter referred to as "Grantor") and the City of Fridley, a municipal corporation organized under the laws of the State of Minnesota (hereinafter referred to as the"City"). WHEREAS, Grantor conveyed certain real property to the City (hereinafter defined and legally described as the "Benefitted Parcel") located in the City of Fridley, County of Anoka, State of Minnesota. WHEREAS, Grantor and City wish to enter into an agreement which will grant to City an easement for access and ingress and egress on, over, through and upon the Easement Area (hereinafter defined and legally described as the "Easement Area") for the benefit of the Benefitted Parcel to allow City to access its storm water pond located on the Benefitted Parcel. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged, the undersigned agree to the grant and creation of the easement(the"Easement") as herein set forth: 1. Benefitted Parcel: The`Benefitted Parcel" is defined and legally described as follows: That part of Lot 3, Block 4, Commerce Park, according to the recorded plat thereof, Anoka County, Minnesota, which lies east of a line beginning at a point on the north line of said Lot 3 being 205.00 feet east of the northwest corner of said Lot 3; thence southerly to a point on the south line of said Lot 3 being 125.00 feet east of the southwest corner of said Lot 3 and which lies northwesterly of the following described line: Commencing at the northeast corner of said Lot 3; thence North 89 degrees 55 minutes 02 seconds West, along the north line of said Lot 3, a distance of 537.88 feet to the point of beginning; thence South 00 degrees 22 minutes 42 seconds East a distance of 93.85 feet; thence South 30 degrees 58 minutes 03 seconds West a distance of 40.92 feet; thence South 73 degrees 57 minutes 03 seconds West, a distance of 129.69 feet; thence South 11 degrees 48 minutes 23 seconds West a distance of 102.57 feet; thence South 01 degree 22 minutes 32 seconds West a distance of 133.70 feet to the south line of said Lot 3 and said line there terminating. Except the south 25.00 thereof 2. Easement Area: The"Easement Area" is defined and legally described as follows: The Southerly 25.00 feet of Lot 3, Block 4, Commerce Park, Anoka County, Minnesota, lying east of the Benefitted Parcel and lying west of the west right-of-way line of Commerce Lane NE as dedicated by the plat of Commerce Park. AND The Northerly 25 feet of Lot 4, Block 4, Commerce Park, Anoka County, Minnesota, lying east of the Benefitted Parcel and lying west of the west right-of-way line of Commerce Lane NE as dedicated by the plat of Commerce Park. 3. Grant of Easement: Grantor hereby conveys and grants to City and its successors, assigns and contractors a non-exclusive Easement for access and ingress and egress purposes on, over, through and upon the Easement Area according to the terms hereof. The City hereby accepts such Easement and the duties and restrictions contained herein. 4. Purposes and Uses of Easement: The purpose of this Easement is to permit the City and its successors, assigns, and contractors to use the Easement Area for access and ingress and egress to the City's storm water pond located on a portion of the Benefitted Parcel in the event the City needs to access the City storm water pond area to construct, inspect, maintain, replace and/or repair the storm water pond. 5. Restrictions on Use: The City shall only use the Easement Area when the City has the need to construct, inspect, maintain, repair and/or replace the City's storm water pond or restore the Easement Area. Only vehicles owned by the City or owned by contractors hired by the City may travel on the Easement Area. This Easement -2- does not create a public right of way; it only creates a limited access route for the City and its contractors for the purposes above stated. 6. Benefited Parties: The Easement created herein is for the sole benefit of the City, its successors, assigns and contractors. The City agrees to adhere to the terms and conditions stated herein, and the City shall cause its successors, assigns and contractors to adhere to the terms and conditions stated herein. 7. Restoration of Easement Area: If the City or its contractors use the Easement Area and the surface within the Easement Area is disturbed, the City, at its sole cost and expense, shall restore the Easement Area to substantially the same condition that existed prior to the Easement Area being used by the City or its contractors. All restoration work shall be completed as soon as practical. The City shall perform restoration to achieve a quality of restoration consistent with the surrounding property and the use thereof. 8. Duration of Easement: The Easement created hereby is perpetual and runs with the Benefitted Parcel. 9. Relocation of Easement: The Grantor and the City are parties to that certain Agreement for the Construction of Specific Stormwater System Improvements in the Oak Glen Creek Subwatershed, City of Fridley Projects 17-446 and 17-516, dated September 19, 2017 (the "Stormwater System Agreement"). The City constructed the storm water pond on the Benefitted Parcel as part of the Project pursuant to said Stormwater System Agreement. A 60" storm trunk line, which drains into the storm water pond on the Benefitted Parcel, is located within the Easement Area as defined in this Access Easement Agreement. Section VIII of the Stormwater System Agreement provides, in pertinent part, as follows: In the event that relocation or modification of a portion of the Project improvements or permanent easements is found to be beneficial to either party, both parties will evaluate their benefit and cooperate in effecting said relocation or modification. In the future, if the relocation [of] the existing 60" storm trunk line is financially feasible, the parties agree to cooperate in effectuating said relocation. Said relocation or modification is subject to approval of the new location by both parties, which approval shall not be unreasonably withheld. -3- The Grantor and the City hereby acknowledge and agree that the location of the Easement Area as defined in this Access Easement Agreement shall be subject to relocation pursuant to Section VIII of the Stormwater System Agreement. 10. No Unreasonable Interference: The City's use of the Easement Area shall not unreasonably interfere with Grantor's ability to use the Easement Area. 11. Binding Effect: The terms and conditions of this Agreement shall be binding upon the parties, their successors and assigns. 12. Indemnification of Grantor: The City hereby agrees to indemnify, defend and hold Grantor and its successors and assigns harmless against and in respect of any and all claims, demands, actions, suits, proceedings, losses, costs, expenses, obligations, liabilities, damages, recoveries, and deficiencies, including interest, penalties and reasonable attorneys' fees, in an amount not to exceed the maximum liability limits of Minn. Stat. § 466.04, that Grantor or its successors and assigns incur or suffer, which arise out of, result from or relate to the use of the Easement Area by the City and its successors, assigns and contractors, except to the extent the claims, demands, actions, suits, proceedings, losses, costs, expenses, obligations, liabilities, damages, recoveries and deficiencies arise out of, result from or relate to Grantor's negligence. [Signature pages follow] -4- IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and year aforesaid by their duly authorized representatives. CITY: CITY OF FRIDLEY Scott J. Lund, Mayor ATTEST: Deb Skogen, City Clerk (CITY SEAL) STATE OF MINNESOTA ) ss. COUNTY OF ANOKA ) On this day of , 2018, before me a Notary Public within and for said County, personally appeared Scott J. Lund and Deb Skogen, to me personally known, who being each by me duly sworn, each did say that they are respectively the Mayor and City Clerk of the City of Fridley, the municipality named in the foregoing instrument, and that the seal affixed to said instrument was signed and sealed on behalf of said municipality by authority of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act and deed of said municipality. Notary Public -5- GRANTOR: RALCORP FROZEN BAKERY PRODUCTS,INC. By: Its: STATE OF ) ss. COUNTY OF ) On this day of , 2018, before me a Notary Public within and for said County, personally appeared , to me personally known, who being by me duly sworn, did say that he/she is the of Ralcorp Frozen Bakery Products, Inc, a Delaware corporation, and that the foregoing instrument was executed on behalf of Ralcorp Frozen Bakery Products, Inc. by authority of the Board of Ralcorp Frozen Bakery Products, Inc. Notary Public THIS INSTRUMENT WAS DRAFTED BY: AFTER RECORDING,PLEASE Jay P. Karlovich, City Attorney RETURN TO: LeVander, Gillen& Miller, P.A. Jay P. Karlovich,City Attorney 633 South Concord Street, Suite 400 LeVander, Gillen& Miller, P.A. South St. Paul, MN 55075 633 South Concord Street, Suite 400 (651)451-1831 South St. Paul, MN 55075 (651)451-1831 -6- AGENDA ITEM Fridley ey ri CITY COUNCIL MEETING OF NOVEMBER 26, 2018 INFORMAL STATUS REPORTS 99