HomeMy WebLinkAboutAgenda Packets - 2017/01/23
CITY OF MOUNDS VIEW
CITY COUNCIL MEETING AGENDA
MOUNDS VIEW CITY HALL
Monday, January 23, 2017
7:00 p.m.
1. CALL TO ORDER
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL: Mueller, Gunn, Hull, Meehlhause
4. APPROVAL OF AGENDA
5. PUBLIC INPUT:
Citizens may speak to issues not on tonight’s agenda. Before speaking, please give
your full name and address for the minutes. Also, please limit your comments to three
minutes.
6. SPECIAL ORDER OF BUSINESS
A. NYFS Recognition of Officer Nate Garland
7. COUNCIL BUSINESS
A. Resolution 8699 Approving Transfers Between Funds for 2016
B. Second Reading and Adoption of Ordinance 931, an Ordinance Amending Section
105.04 of the Municipal Code Regarding Council Meeting Times (ROLL CALL
VOTE)
C. Resolution 8701 Appointing Michael Richie to the Position of Project Coordinator in
the Public Works Department
D. Resolution 8703 Authorizing the Abatement of Nuisance Conditions at 2832
Mounds View Boulevard (“Tires ‘n More”)
8. CONSENT AGENDA
A. Resolution 8700 Renewing Lease Agreement with Dippin’ Chocolates, Inc., at the
Mounds View Community Center
B. Resolution 8698 Appoint Parks and Recreation and Forestry Commission
Chairperson
C. Resolution 8702 Approving a Settlement Agreement and Release of Claims
D. Schedule a Public Hearing on Monday, February 27, 2017, at 7 p.m., to Consider a
Residential Kennel License to allow four (4) dogs at 8144 Pleasant View Court.
Applicant: Alison Caldwell
9. JUST AND CORRECT CLAIMS
City Council Agenda
Monday, January 23, 2017
Page 2
10. APPROVAL OF MINUTES
A. January 9, 2017, City Council Minutes
11. REPORTS
A. Reports of Mayor and Council
B. Reports of Staff
1. Review Agenda for Council / Staff Retreat
2. Discuss Receptionist / Recycling Coordinator Position
3. Review Charter Commission Questions re: Charter Section 4.05
C. Reports of City Attorney
12. Next Council Work Session: Monday, February 6, 2017, at 7pm
Next Council Meeting: Monday, February 13, 2017, at 7pm
13. ADJOURNMENT
Item No. 7.A
Meeting Date: January 23, 2017
Type of Business: Council Business
Administrator Review: _______ City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Mark Beer, Finance Director
Item Title/Subject: Resolution 8699 Approving Transfers Between Funds
for 2016
The City Council included a variety of transfers between funds as part of the 2016 budget.
They are listed in the attached resolution in the Budget column. Resolution 8699 formally
authorizes the listed transfers between funds in the Actual column for the year 2016.
Some of the budgeted transfers can be adjusted. The Council can direct staff to make
additional changes if it desires.
The General Fund has a surplus due to higher franchise fee revenue, LGA was received
at the promised amount, and department expenditures were slightly below budget for
most departments. There is a budgeted transfer of $75,000 to the Special Projects Fund,
due to the favorable revenue collections and under budget expenditures staff
recommends that the transfer be increased to $375,000.
The 2004 Street Improvement Bonds have been retired with a cash balance of $3,125
remaining. City code directs that the residual balance be transferred to the benefited
capital project fund which is the Street Improvement Capital Projects fund.
The Water Enterprise fund has had significant activity over the past five years to catch up
on deferred maintenance. Temporarily postponing outgoing transfers will allow the fund
to rebuild cash reserves. Staff is recommending approval of resolution 8699 approving
transfers between funds.
Respectfully Submitted,
____________________
Mark Beer, Finance Director
RESOLUTION NO. 8699
CITY OF MOUNDS VIEW
COUNTY OF Ramsey
State of Minnesota
APPROVING TRANSFERS BETWEEN FUNDS FOR 2016
WHEREAS, the City has adopted budgets for various funds for 2016, the budgets
include inter-fund transfers for various purposes; and
WHEREAS, it is possible to adjust some of the transfers from the originally
budgeted amounts; and
WHEREAS, the General fund saw favorable operating results providing an
opportunity to restore some of the fund balance in the Special Projects Fund; and
WHEREAS, residual amounts remain in the debt service fund after the bonds have
been retired and City code requires that any remaining amounts be transferred to the
benefited capital project fund; and
WHEREAS, the Water Enterprise fund has experienced significant activity over
the past five years to catch up on deferred maintenance, discontinuing on a temporary
basis outgoing transfers will allow the fund to rebuild cash reserves.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Mounds
View that the following transfers for the calendar year 2016 are hereby approved up to
the amounts listed in the Actual column:
Page 2, Resolution 8699
From To Budget Actual
Water Fund General Fund $73,619 $ -
Sewer Fund General Fund 58,309 58,309
Street Light Fund General Fund 2,612 2,612
Storm Water General Fund 7,604 7,604
Vehicle & Equipment General Fund 22,000 22,000
General Fund Community Center 170,000 170,000
General Fund Special Projects 75,000 375,000
General Fund EDA 50,000 50,000
General Fund Vehicle & Equipment 150,000 150,000
Water Fund Vehicle & Equipment 64,000 -
Sewer Fund Vehicle & Equipment 42,000 42,000
Storm Water Fund Vehicle & Equipment 32,000 32,000
Water Fund Street Improvement Fund 25,000 -
Sewer Fund Street Improvement Fund 140,000 140,000
Storm Water Fund Street Improvement Fund 75,000 75,000
Vehicle & Equipment Sewer Fund 83,000 60,000
TIF District #5 EDA 75,331 75,331
Debt Service Street Improvement Fund - 3,125
Total $1,145,475 $1,262,981
Passed and adopted this 23rd day of January, 2017.
_____________________________
Carol A. Mueller, Mayor
ATTEST:
_____________________________
Jim Ericson, City Administrator
(seal)
Item No: 07B
Meeting Date: January 23, 2017
Type of Business: Council Business
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: James Ericson, City Administrator
Item Title/Subject: Second Reading and Adoption of Ordinance 931, an
Ordinance Amending Section 105.04 of the Municipal Code
Regarding Council Meeting Times (ROLL CALL VOTE)
Introduction:
The City Council has had discussions about what time the regular City Council meetings
should start. Presently, the City Code in Section 105.04 indicates that regular council
meetings start at 7 pm, but that work sessions (referred to as “Agenda Meetings” in the
Code) may start “at a time set by Council resolution.”
Discussion:
Given the multiple ways for residents to stay informed on matters considered by the City
Council (Cable TV, web stream live, web stream on demand), and in consideration of the
amount of time between the end of the work day for staff (4:30 pm) and the beginning of
the council meetings (7:00 pm), the City Council discussed holding regular meetings and
work sessions at 6:00 pm instead of 7:00 pm, which would allow staff and council members
to return home one hour earlier (in theory). The earlier start time could potentially reduce
costs associated with overtime and comp time accruals.
To change the meeting times to 6:00 pm, the City Council would need to amend the City
Code in Section 105.04 where it specifically references that regular City Council meetings
start at 7:00 pm. The proposed change would replace the specific reference of 7:00 pm
with language to indicate that the meetings would start “at a time set by Council resolution”.
The Council approved the first reading and introduction of Ordinance 931 at its meeting on
January 9, 2017.
Recommendation:
Staff recommends the Council approve the second reading and adoption of Ordinance
931, an Ordinance amending Section 105.04 regarding the start time for regular City
Council meetings. Action on the ordinance is to occur by roll call vote of the Council.
Respectfully submitted,
________________________
James Ericson
City Administrator
ORDINANCE NO. 931
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
AN ORDINANCE AMENDING SECTION 105.04 OF THE MOUNDS VIEW CITY CODE
RELATING TO CITY COUNCIL MEETING TIMES
The City of Mounds View Ordains:
SECTION 1. The City Council of the City of Mounds View hereby amends Section 105.04,
Subdivision 1 of the Mounds View Municipal Code by adding the underlined material and
deleting the stricken material as follows:
Subd. 1. Regular Meetings: Regular meetings of the Council shall be held on the
second and fourth Mondays of each month at a time set by Council resolution, at
the City seven o’clock (7:00) P.M. at the Municipal Hall. If any such Monday is a
legal holiday or Christmas or New Year’s Eve, the meeting will be cancelled or held
on another date and time as established by Council action.
SECTION 2. In accordance with Section 3.07 of the City Charter, City staff shall have the
following summary printed in the official City newspaper in lieu of the complete ordinance:
On January 23, 2017, the Mounds View City Council adopted Ordinance 931 which
amends Section 105.04 of the Mounds View City Code by striking the requirement
for Council meetings to start at 7:00 pm on the 2nd and 4th Mondays of the month
and replacing the specific time with, “at a time set by Council resolution”.
A printed copy of the ordinance is available for inspection during regular business
hours at Mounds View City Hall and is available online at the City’s web site
located at www.ci.mounds-view.mn.us.
SECTION 3. This ordinance shall take effect and be in force 30 days from and after its
passage and publication, in accordance with Section 3.09 of the City Charter.
Introduction and First Reading by the Mounds View City Council on January 9, 2017.
Second Reading and Adoption by the Mounds View City Council on January 23, 2017.
Publication Date: February 3, 2017
______________________________
Carol A. Muller, Mayor
Attest:
______________________________
James Ericson, City Administrator
(seal)
Item No: 7C
Meeting Date January 23, 2017
Type of Business: CB
Administrator Review: ____
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Desaree Crane, Assistant City Administrator
Item Title/Subject: Resolution 8701, a Resolution Appointing Michael Richie to the
Position of Project Coordinator in the Public Works Department
Background:
Brandon Stenglein resigned from his position on October 7, 2016, At the September 26, 2016, City
Council Meeting, the City Council authorized Staff to advertise.
Discussion:
Staff advertised the opening on the City’s website, Star Tribune, government jobs.com, and the
League of Minnesota Cities website. Staff interviewed four (4) qualified candidates, and conducted
second interviews on the top two (2) candidates. It was the consensus of Staff to recommend
Michael Richie to the position of Project Coordinator.
Michael Richie has a Bachelors Degree in Civil Engineering, and has worked for the cities of Wayzata
and Plymouth in various engineering roles. If hired, Mr. Richie would start at Step 1 of the Pay Scale
at $26.34/hour; with an increase to Step 1.5 of the salary range (currently $27.16/hour) after 6 months
of employment. All increases are subject to a satisfactory performance evaluation. All other City
benefits and personnel policies will apply as stated in the Mounds View Personnel Manual.
Staff has not received criminal background checks and driver’s license checks. Staff is currently in the
process of checking references. This appointment would be contingent on receiving these
satisfactory reports.
Michael Richie would begin employment on or about January 30, 2017.
This is a full-time, non-union, non-exempt position.
Recommendation:
Staff recommends the City Council adopt Resolution 8701, contingent on receiving satisfactory
criminal background, driver’s license and reference checks.
Respectfully submitted,
________________________
Desaree Crane
RESOLUTION NO. 8701
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
APPROVING THE HIRE OF MICHAEL RICHIE
TO THE POSITION OF
PROJECT COORDINATOR
WHEREAS, upon direction from the Mounds View City Council, the Project Coordinator
position was advertised; and
WHEREAS, Staff interviewed four (4) qualified candidates and conducted second
interviews on two (2) candidates; and
WHEREAS, Michael Richie’s skills and experience were determined to most closely
match the duties and responsibilities as outlined in the job description; and
WHEREAS, Mr. Richie would start at Step 1 of the Pay Scale at $26.34/hour; with an
increase to Step 1.5 of the salary range (currently $27.16/hour) after 6 months of employment;
and
WHEREAS, all step wage increases are subject to satisfactory performance evaluations;
and
WHEREAS, background checks on Mr. Richie are incomplete, and therefore, hiring
would be contingent on satisfactory background and reference checks; and
WHEREAS, Mr. Richie would begin employment on or about January 30, 2017.
NOW, THEREFORE, BE IT RESOLVED that the Mounds View City Council appoints
Michael Richie to the position of Project Coordinator in the Public Works Department, contingent
on satisfactory background and reference checks, with employment to commence on or about
January 30, 2017.
BE IT FINALLY RESOLVED that the City Council does hereby approve the hire of
Michael Richie to the full-time, non-exempt, non-union position of Project Coordinator at Step 1
of the pay scale (currently $26.34/hour).
Adopted this 23rd day of January, 2017.
Carol A. Mueller, Mayor
ATTEST:
James Ericson, City Administrator
(seal)
Item No: 07D
Meeting Date: January 23, 2017
Type of Business: Council Business
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: James Ericson, City Administrator
Item Title/Subject: Resolution 8703 Authorizing the Abatement of Nuisance
Conditions at 2832 Mounds View Boulevard (“Tires ‘n More”)
Introduction:
The property located at 2832 Mounds View Blvd, owned by C & N Group LLC, with an
office located at 980 Osbourne Road in Fridley, is currently in violation of Mounds View
City Code. Complaints have been received about junk vehicles on the property as well as
a pile of old tires behind the building. This has been an ongoing problem resulting in
previous court citations being issued. A letter was sent to the property owner on January
12, 2017, requesting that the conditions be corrected by January 22, 2017.
Discussion:
Section 607.03 of the City Code enumerates conditions that constitute a public nuisance,
including the automobile tires piled behind the building. Section 607.07 of the City Code
relates to vehicles constituting a public nuisance and their impoundment. Section 607.09
of the City Code provides for the ability to gain compliance with the City Code through an
abatement process. In non-emergency situations, where no immediate threat to the public
health and safety exists, the City Code requires that staff obtain City Council authorization
before an abatement of the conditions proceeds. The City Code also requires that the City
provide the property owner at least 10 days’ notice before the City Council takes action on
the abatement. The notice to the property owners was dated January 12, 2017.
The property owners have not contacted the City in response to the notice dated January
12, 2017. If they should be in attendance at the January 23, 2017, meeting, they shall be
afforded an opportunity to address the City Council regarding this matter.
Recommendation:
Staff recommends City Council approve Resolution 8703, a resolution authorizing the
abatement of public nuisance conditions at 2832 Mounds View Boulevard with the cost of
the abatement charged back to the property owners.
Respectfully submitted,
________________________
James Ericson
City Administrator
RESOLUTION 8703
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION AUTHORIZING THE ABATEMENT OF NUISANCE CODE VIOLATIONS EXISTING AT 2832 MOUNDS VIEW BOULEVARD
WHEREAS, the C&N Group LLC, located at 980 Osbourne Road in Fridley,
Minnesota, represented by Naoufel Soussi, is the owner of record of the property located
at 2832 Mounds View Boulevard, legally described as follows:
Part of Lot 1, Block 1, Velmeir CVS ADDITION
PIN# 06-30-23-34-0089
WHEREAS, on January 3, 2017, City staff was notified of junk vehicles and a pile of
tires behind the building at 2832 Mounds View Boulevard, previously operated as “Tires ‘n
More”; and,
WHEREAS, on January 10, 2017, City staff observed numerous junk vehicles at the
property in addition to a large pile of tires behind the building in violation of the City’s
Nuisance Code; and,
WHEREAS, on January 12, 2017, a letter was sent to the property owner alerting it
to the nuisance conditions and requesting that the conditions be corrected by January 22,
2017; and,
WHEREAS, on January 18, 2017, a reinspection revealed that while the tires had
been removed, additional junk cars had been brought to the property; and,
WHEREAS, on January 23, 2017, a reinspection of the property revealed that junk
vehicles were still present at the property.
NOW THEREFORE, BE IT RESOLVED THAT the junk vehicles parked on the
property constitute a Public Nuisance in accordance with Section 607.07 of the Mounds
View City Code and that they may be impounded after providing appropriate notice as
outlined in Section 607.06, Subd. 5.
NOW THEREFORE, BE IT FURTHER RESOLVED THAT if the property owner fails
to submit payment for the cost of the impoundment of the junk vehicles at 2832 Mounds
View Boulevard within 30 days after the date of the invoice, the City may certify the unpaid
costs against the property pursuant to Section 607.09, Subd. 8 of the Mounds View City
Code.
Res. 8703
Page 2
Adopted this 23rd day of January, 2017.
________________________________
Carol A. Mueller, Mayor
ATTEST:
________________________________
James Ericson, City Administrator
(seal)
Item No: Item 08A
Meeting Date: January 23, 2017
Type of Business: Consent
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: James Ericson, City Administrator
Item Title/Subject: Resolution 8700, Approving a Lease Agreement Renewal with
Dippin Chocolate, LLC, for Use of Kitchen Space in the
Mounds View Community Center
Introduction
The business known as Dippin Chocolate, LLC, has requested approval to renew their lease for
the commercial kitchen space at the Mounds View Community Center in 2017. Dippin
Chocolate has been leasing space for the last year without incident. City policy dictates that
only licensed caterers shall be able to rent out or use the kitchen. The business has such a
license.
Discussion
Staff originally brought this request to the Council’s attention in November of 2014 and asked if it
would be amenable to a limited lease agreement with the entity. As it was explained, the
business would not be preparing food or cooking within the space, and at most would likely use
the dishwasher for cleaning serving equipment used off-site. It was communicated to the
business that any such lease would be non-exclusive and their usage could not interfere with or
disrupt existing tenant’s usage or other scheduled events, to which the business is agreeable.
According to staff at the Community Center, there have been no conflicts and the business has
been good to work with. The business will be required to provide proof of updated insurance,
provide an annual payment, and provide proof of current County licensure as a condition of
usage. No right of entry would be permitted after hours and no keys would be provided to the
business. Usage of the space would be paid on an hourly basis in a manner consistent with
policies and procedures already in place.
Recommendation
Staff recommends that the City Council consider Resolution 8700 approving the lease
agreement renewal with Dippin Chocolate, LLC, for use of the kitchen space at the Mounds
View Community Center, to extend through December 31, 2017.
Respectfully submitted,
________________________
James Ericson
City Administrator
RESOLUTION NO. 8700
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION APPROVING A LEASE AGREEMENT WITH
DIPPIN CHOCOLATE, LLC, FOR USE OF THE COMMERCIAL KITCHEN SPACE
AT THE MOUNDS VIEW COMMUNITY CENTER
WHEREAS, Dippin Chocolate, LLC, desires to lease kitchen space at the Mounds
View Community Center (“MVCC”) beginning January 1, 2017; and,
WHEREAS, the commercial kitchen space at the MVCC is available for hourly rental
by licensed food caterers; and,
WHEREAS, Dippin Chocolate, LLC, is currently licensed as a food caterer through
Ramsey County; and,
WHEREAS, the City Council has reviewed the attached Lease Agreement and
agrees to renew said lease with Dippin Chocolate, LLC, on a non-exclusive basis, as
described and as stipulated therein.
NOW, THEREFORE BE IT RESOLVED THAT the Mounds View City Council does
hereby approve the non-exclusive Lease Agreement with Dippin Chocolate, LLC, for one
year, beginning January 1, 2017, at the annual rate of $300, plus additional cost of $92 per
hour or fraction thereof.
Adopted this 23rd day of January, 2017.
_______________________________
Carol A. Mueller, Mayor
ATTEST:
_______________________________
James Ericson, City Administrator
(seal)
LEASE AGREEMENT
By and Between
City of Mounds View,
And
Dippin Chocolate, LLC
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416585v5 SJR MU210-35
LEASE AGREEMENT
This Lease is made effective as of January 1, 2017, by and between the City of Mounds
View, a Minnesota municipal corporation (“Landlord”), and Dippin Chocolate, LLC, a Minnesota
limited liability company ("Tenant").
DATA SHEET
The legal significance of the terms set forth in this Data Sheet is governed by references to
such terms in the remainder of this Lease.
• BUILDING. That certain building situated on the following described real estate:
Commonly known as MOUNDS VIEW COMMUNITY CENTER
• PREMISES. That space in the Building, as designated on Exhibit A as “the Kitchen”
annexed hereto. The street address of the Premises is 5394 Edgewood Drive in the
City of Mounds View.
• LANDLORD: City of Mounds View, 2401 Mounds View Boulevard, Mounds View,
MN 55112.
• TENANT: Dippin Chocolate, LLC, 2661 Scotland Ct, #107, Mounds View, MN,
55112.
1. PREMISES:
Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, for the term and
upon the conditions hereinafter provided, the Premises described in the Data Sheet.
2. TERM:
The Term of this Lease shall commence on the 1st day of January, 2017, and shall terminate
on the 31st day of December, unless earlier terminated as hereinafter provided.
3. RENT:
Tenant agrees to pay Landlord, at 2401 Mounds View Boulevard, Mounds View, MN 55112,
or such other place as Landlord may from time to time designate in writing, an annual rent in the
amount of $300, due on or before January 1, 2017, and $92 per hour or fraction thereof, for actual
use of the Premises, payable in a manner consistent with present policy and procedure.
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4. USE OF PREMISES:
Tenant will have non-exclusive access to use the Premises solely for kitchen purposes as
outlined herein during the Building’s normal hours of operation. Tenant will not use or occupy the
Premises for any unlawful purpose, and will comply with all present and future laws, ordinances,
regulations and orders of all governmental units having jurisdiction over the Premises. Tenant will
not use or occupy the Premises for overnight accommodations. Tenant shall not cause or permit any
unusual noise, vibrations, odors or nuisance in or about the Premises and the Building and grounds
nor shall Tenant permit any debris, property or merchandise of Tenant, its officers, employees or
agents to be placed or left upon the grounds; and Tenant, its officers and employees shall observe all
reasonable rules and regulations adopted by Landlord for the general safety, comfort and
convenience of Landlord, Tenant and other Tenants.
Use of the Premises by the tenant shall be predicated upon providing proof of a valid Food
Caterers License issued by Ramsey County.
In the event Tenant shall cause or permit any unusual noise, odor or nuisance or the storage
of any debris, property or merchandise of Tenant, its officers, employees or agents, in or about the
Premises, the Building or grounds in violation of the terms of this Section, landlord shall be entitled
to take any steps it deems reasonably necessary to correct or remove such violation and Tenant shall
pay Landlord, as additional rent hereunder, all costs and expenses incurred in such correction or
removal including all costs and expenses incurred in ascertaining which Tenant is responsible for
such violation.
Landlord disclaims any warranty that the Premises are suitable for Tenant's use and Tenant
acknowledges that it has had a full opportunity to make its own determination in this regard.
Landlord warrants, to the best of its knowledge, that the building is in compliance with the
Americans with Disabilities Act (ADA). In the event that the premises is found not to be in
compliance, Landlord shall be responsible for all construction or alteration of the premises to render
the premises in compliance with ADA.
Tenant will not conduct or permit to be conducted any activity, or place any equipment in or
about the Premises, which will in any way increase the rate of fire insurance or other insurance on
the building; and if any increase in the rate of fire insurance or other insurance is stated by any
insurance company or by the applicable Insurance Rating Bureau to be due to activity or equipment
of Tenant in or about the Premises, such statement shall be conclusive evidence that such increase in
such rate is due to such activity or equipment and, as a result thereof, Tenant shall be liable for such
increase and shall reimburse Landlord therefore and, further, shall discontinue or cause the
discontinuance of such conduct or shall remove such equipment upon Landlord's demand made at
any time thereafter.
Tenant shall not install, use, generate, store or dispose of in or about the Premises any
hazardous substance, toxic chemical, pollutant or other material regulated by the Comprehensive
Environmental Response, Compensation and Liability Act of 1985 or the Minnesota Environmental
Response and Liability Act or any similar law or regulation, including without limitation any
material containing asbestos, PCB, CFC or HCFC (collectively "Hazardous Materials") without
Landlord's written approval of each Hazardous Material. Landlord shall not unreasonably withhold
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416585v5 SJR MU210-35
its approval of use by Tenant of immaterial quantities of Hazardous Materials customarily used in
business operations so long as Tenant uses such Hazardous Materials in accordance with all
applicable laws. Upon expiration or termination of this Lease Tenant shall remove all Hazardous
Materials installed, used, stored or disposed of in the Premises by Tenant. Tenant shall indemnify,
defend and hold Landlord harmless from and against any claim, damage or expense arising out of
Tenant's installation, use, generation, storage, or disposal of any Hazardous Materials, regardless of
whether Landlord has approved the activity.
5. ASSIGNMENT AND SUBLETTING:
Tenant will not assign, transfer, mortgage or encumber this Lease or sublet or rent or
franchise or permit occupancy or use of the Premises, or any part thereof by any third party; nor shall
any assignment or transfer of this Lease be effectuated by operation of law or otherwise, (any of the
foregoing being hereinafter referred to as an "Assignment") without in each such case obtaining the
prior written consent of Landlord, which consent shall be subject to Landlord’s sole discretion. The
consent by Landlord to any Assignment shall not be construed as a waiver or release of Tenant from
the terms of any covenant or obligation under this Lease, nor shall the collection or acceptance of
rent from any transferee under an Assignment constitute an acceptance of the Assignment or a
waiver or release of Tenant or any transferee of any covenant or obligation contained in this Lease,
nor shall any Assignment be construed to relieve Tenant from the requirement of obtaining the
consent in writing of Landlord to any further Assignment. In conjunction with any requested
assignment of this Lease, Landlord may require Tenant to execute a reaffirmation of Tenant’s
liability hereunder, with waiver of defenses based solely on suretyship.
If, at any time during the Term of this Lease, Tenant (and/or the guarantor, if any) is:
(i) a corporation or a trust (whether or not having shares of beneficial interest)
and there shall occur any change in the identity of any of the persons then having power to
participate in the election or appointment of the directors, trustees, or other persons
exercising like functions and managing the affairs of Tenant, or
(ii) a partnership, limited liability company or association or otherwise not a
natural person (and is not a corporation or a trust) and there shall occur any change in the
identity of any of the persons who then are members of such partnership or association or
who comprise Tenant,
such change shall be deemed to be an Assignment. This Section shall not apply if Tenant (and/or
guarantor, if any) named herein is a corporation and the outstanding voting stock thereof is listed on
a recognized national securities exchange.
Whether or not Landlord has consented to assignment or sublease, Tenant shall pay directly
to Landlord the amount by which the rent or other payments received by Tenant pursuant to such
assignment or sublease exceeds, in any month, the Rent and additional rent payable by Tenant to
Landlord Hereunder.
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6. MAINTENANCE AND REPAIRS:
Tenant agrees to keep, maintain and repair the Premises and the fixtures and equipment
therein in first class, properly functioning, safe, orderly and sanitary condition, will make all
necessary replacements thereto, will suffer no waste or injury thereto, and will at the expiration or
other termination of the Term of this Lease, surrender the same with all improvements in the same
order and condition in which they were on the commencement date of this lease, or in such better
condition as they may hereafter be put, excepting ordinary wear and tear as well as casualty damage
to the extent such casualty damage is covered by insurance excepted. Notwithstanding anything
apparently to the contrary in this Section, any cost of repairs or improvements to the Building, to the
Premises or to any common areas which are occasioned by the negligence or default of Tenant, its
officers, employees, agents or invitees, or by requirements of law, ordinance or other governmental
directive and which arise out of the nature of Tenant's use and occupancy of the Premises or the
installations of Tenant in the Premises shall be paid for by Tenant.
7. ALTERATIONS; SIGNS; EQUIPMENT; MOVING:
Tenant will not make or permit anyone to make any alterations, decorations, additions or
improvements, structural or otherwise, in or to the Premises or the Building without the prior written
consent of Landlord. As a condition precedent to consent of Landlord hereunder, Tenant agrees to
obtain and deliver to Landlord such security against mechanic's liens as Landlord shall reasonably
request. If any mechanic's lien is filed against any part of the Building for work claimed to have
been done for, or materials claimed to have been furnished to Tenant, such mechanic's lien shall be
discharged by Tenant within ten days thereafter, at Tenant's sole cost and expense, by the payment
thereof or by making any deposit required by law. Regardless of whether Landlord's consent is
required or obtained hereunder: (i) all alterations shall be made in accordance with applicable laws,
codes and insurance guidelines, and shall be performed in a good and workmanlike manner, (ii) if the
construction or installation of Tenant's alterations or fixtures causes any labor disturbance, Tenant
shall immediately take any action necessary to end such labor disturbance, and (iii) Tenant shall
furnish to Landlord as-built plans in such format as Landlord may reasonably require. All
alterations, which become permanent fixtures to the Premises shall become the property of Landlord
upon expiration of the Term and shall remain upon and be surrendered with the Premises as a part
thereof without disturbance or injury, unless Landlord requires specific items thereof to be removed
by Tenant at Tenant's sole expense, in which event Tenant shall do so prior to the expiration of the
Term at its expense, and shall repair any damage caused thereby.
Tenant shall not place or maintain any sign, advertisement or notice on any part of the outside
of the Premises or the building.
Tenant shall not install any equipment containing Hazardous Materials nor any equipment
which will or may necessitate any changes, replacements or additions to, or in the use of, the heating,
ventilating or air-conditioning system, or other building system of the Premises or the Building
without first obtaining the prior written consent of Landlord. Equipment belonging to Tenant which
causes noise or vibration that may be transmitted to the structure of the Building or to any space
therein to such a degree as to be objectionable to Landlord or to any tenant in the Building shall be
installed and maintained by Tenant, at Tenant's expense, on vibration eliminators or other devices
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sufficient to eliminate noise and vibration. Landlord shall have the right at any time to limit the
weight and prescribe the position of safes, concentrated filing systems and other heavy equipment or
fixtures.
All moving of furniture, equipment and other material shall be done under the direct control
and supervision of Landlord who shall, however, not be responsible for any damage to or charges for
moving the same unless damage is the direct result of Landlord’s sole and gross negligence. Any
and all damage or injury to the premises or the Building caused by moving the property of Tenant in
or out of the Premises, or due to the same being on the Premises, shall be repaired by, and at the sole
cost of, Tenant. No deliveries or pickups shall be left unattended at the loading dock.
8. RIGHT OF ENTRY:
Landlord will not provide Tenant keys to the Premises or permit unrestricted access of any
means; entry to Premises shall be limited to ordinary hours of Building operation, as posted, at times
pre-determined to not cause a conflict with other tenants or scheduled events. Landlord shall use
reasonable efforts to not unreasonably interfere with the conduct of Tenant's business, but Landlord
shall in no event be liable to Tenant for any damages in connection with such limited entry or access.
Landlord reserves the right to impose such reasonable security restrictions in the common
areas as it deems appropriate from time to time.
9. SERVICES AND UTILITIES:
Landlord agrees to pay all charges for utility services to the Premises during the term of this
Lease including, but not limited to, gas, electric, sewer, water, sprinkler alarm system, security
systems and rubbish removal. Tenant shall not commit waste or use any of the utilities in excess of
ordinary and reasonable use.
10. PROTECTION FROM SUBROGATION:
Anything in this Lease to the contrary notwithstanding, neither Landlord nor Tenant shall be
liable to the other for any business interruption or any loss or damage to property or injury to or death
of persons occurring on the Premises or the adjoining properties, mall areas, sidewalks, streets or
alleys, or in any manner growing out of or connected with Tenant’s use and occupation of the
Premises, or the condition thereof or of mall areas, sidewalks, streets or alleys adjoining, caused by
the negligence or other fault of Landlord, or Tenant or of their respective agents, employees,
subtenants, licensees or assignees to the extent that such business interruption or loss or damage to
property or injury to or death of person is covered by or indemnified by proceeds received from
insurance carried by other party (regardless of whether such insurance is payable to or protects
Landlord or Tenant or both) or for which such party is otherwise reimbursed; and Landlord and
Tenant each hereby respectively waive all rights of recovery against the other, its agents, employees,
subtenants, licensees and assignees, for any such loss or damage to property or injury to or death of
persons to the extent the same is covered or indemnified by proceeds received from any such
insurance, or for which reimbursement is otherwise received. Landlord’s and Tenant’s respective
policies of insurance shall each contain a waiver of subrogation provision incorporating the above
covenant and providing that the insurance shall not be invalidated by the insured’s written waiver
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prior to a loss of any or all right of recovery against any party for any insured loss. It is expressly
understood that Landlord shall not be liable to Tenant for any damages incurred by the latter as a
result of the above and foregoing events; save and except as to any such damages caused by the
willful or wanton conduct of Landlord, its agents or employees, provided such damages are not
recoverable by Tenant pursuant to the insurance policies required to be provided by Tenant under
this Lease or otherwise.
11. WAIVER AND INDEMNITY:
Notwithstanding anything apparently to the contrary in this Lease, Landlord and its partners,
officers and employees and property manager shall not be liable to Tenant, and Tenant hereby
releases such parties from all damage, compensation or claims from any cause other than the
intentional misconduct of Landlord or its partners, officers or employees or property manager arising
from: loss or damage to personal property or trade fixtures in the Premises including books, records,
files, computer equipment, computer data, money, securities, negotiable instruments or other papers;
lost business or other consequential damage arising out of interruption in the use of the Premises;
and any criminal act by any person other than Landlord or its partners, officers or employees.
Furthermore, Tenant agrees that Landlord, its officers, agents, partners, and employees shall not be
liable to Tenant or those claiming through or under Tenant for any injury, death or property damage
occurring in, on or about the Premises, the Building or grounds.
Tenant agrees to indemnify, defend and hold Landlord and its partners, officers and
employees and property manager harmless from and against any claim, loss or expense arising out of
injury, death or property loss or damage occurring by reason of Tenant’s use of the Premises, except
only to the extent caused by the negligent act or intentional misconduct of Landlord or its partners,
officers or employees or property manager.
Nothing in this Lease shall constitute a waiver or limitation of the Landlord’s immunities or
limitations on liability as set forth in Minnesota Statutes, Chapter 466.
12. INSURANCE:
Tenant agrees to purchase, in advance, and to carry in full force and effect the following
insurance:
(a) "All risk" property insurance covering the full replacement value of all of
Tenant's leasehold improvements, trade fixtures and personal property within the Premises.
Landlord shall be named as loss payee under all such policies.
(b) Commercial general liability insurance, providing coverage on an
"occurrence" rather than a "claims made" basis, which policy shall include coverage for Bodily
Injury, Property Damage, Personal Injury, Contractual Liability (applying to this Lease), and
Independent Contractors, in current Insurance Services Office form or other form which provides
coverage at least as broad. Tenant shall maintain a combined policy limit of at least $2,000,000
aggregate $1,000,000 per occurrence applying to Bodily Injury, Property Damage and Personal
Injury, which limit may be satisfied by Tenant's basic policy, or by the basic policy in combination
with umbrella or excess policies so long as the coverage is at least as broad as that required herein.
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Such liability for property damage and fire legal liability shall not be less than $500,000.00 Such
liability, umbrella and/or excess policies may be subject to aggregate limits so long as the aggregate
limits have not at any pertinent time been reduced to less than the policy limit stated above, and
provided further that any umbrella or excess policy provides coverage from the point that such
aggregate limits in the basic policy become reduced or exhausted. Landlord shall be named as
additional insured under all such policies.
At least ten (10) days prior to entry by Tenant on the Premises, Tenant shall deliver to
Landlord evidence that the insurance required by this Lease is in full force and effect. At least thirty
(30) days prior to expiration of any such coverage, Tenant shall deliver evidence that the coverage in
question will be renewed or replaced upon expiration. Such evidence of insurance shall be in writing
signed by a party authorized to bind the insurer, authorize Landlord to rely thereon, and shall contain
sufficient information to enable Landlord to determine whether Tenant's insurance complies with the
requirements of this Lease. Upon request, Tenant shall also furnish insurer-certified copies of all
pertinent policies. All polices used to provide the coverage required by this Lease shall (i) be
endorsed to require the insurer to provide at least thirty (30) days’ notice to Landlord prior to
cancellation or non-renewal, and (ii) be issued by financially sound companies having an A.M. Best
Company rating of at least A:VII.
13. FIRE OR OTHER CASUALTY:
If the Premises or the Building shall be damaged by fire or other cause Landlord shall at its
option either (a) undertake to restore such damage with all due diligence, or (b) in the event the
Premises or the Building are damaged by fire or other cause to such extent that damage cannot, in
Landlord's sole judgment, be economically repaired within 90 days after the date of such damage
(taking into account the time necessary to effectuate a satisfactory settlement with any insurance
company and using normal construction methods without overtime or other premium), terminate this
Lease, by notice given to Tenant within 60 days after the date of the damage. Any termination
hereunder by reason of damage to the Premises shall be effective as of the date of the damage. Any
termination by reason of damage to the Building but not the Premises shall be effective as of the date
notice is given. If Landlord elects to restore, Landlord shall not be obligated to restore any
improvements in the Premises which were not owned and constructed by Landlord. Upon
substantial completion by Landlord of its work, Tenant shall undertake to restore its leasehold
improvements and trade fixtures with all due diligence. This Lease shall, unless terminated by
Landlord, remain in full force and effect following such damage, and, in the case of damage to the
Premises, the Rent, prorated to the extent that the Premises are rendered untenantable, shall be
equitably abated until such repairs are completed; provided, however, that if Tenant does not restore
its leasehold improvements and trade fixtures with due diligence, abatement shall cease as of the date
restoration could have been completed using due diligence.
14. CONDEMNATION:
If the whole or any substantial part of the Premises shall be taken or condemned or purchased
under threat of condemnation by any governmental authority, then the Term of this Lease shall cease
and terminate as of the date when the interference with the possession, enjoyment or value of the
Premises occurs and Tenant shall have no claim against the condemning authority, Landlord or
otherwise, for any portion of the amount that may be awarded as damages as a result of such taking
or condemnation or for the value of any unexpired Term of the Lease, provided, however, that
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416585v5 SJR MU210-35
landlord shall not be entitled to any separate award made to Tenant for loss of business, relocation
costs or the value of the cost of removal of stock and trade fixtures and any such award is hereby
condemned to the extent that it cannot, in Landlord's sole judgment, be economically restored within
a reasonable time, Landlord shall have the option by notice given to Tenant within 30 days after the
date of interference with possession, to terminate this Lease as of the date of such interference with
possession.
15. DEFAULT:
Any one of the following events shall constitute an Event of Default:
(i) Tenant shall fail to pay any annual installment of Rent as herein
provided, or Tenant shall fail to pay for any hourly usage of the Premises within
Fifteen (15) days of being invoiced;
(ii) Tenant shall violate or fail to perform any of the other conditions,
covenants or agreements herein made by Tenant and such default shall continue for
30 days after notice from Landlord; provided, however, that if the nature of such
default is such that Tenant can cure the default, but not within fifteen (15) days, then
the Event of Default shall be suspended for a period not in excess of thirty (30)
additional days so long as Tenant commences cure within fifteen (15) days and
thereafter diligently and continuously prosecutes the curing of the default, and so
long as continuation of the default does not create material risk to the Building or to
persons using the Building;
(iii) Tenant shall file or have filed against it or any guarantor of this Lease
any bankruptcy or other creditor's action, or make an assignment for the benefit of its
creditors.
If an Event of Default shall have occurred and be continuing, Landlord may at its sole option
by written notice to Tenant terminate this Lease. Neither the passage of time after the occurrence of
the Event of Default nor exercise by Landlord of any other remedy with regard to such Event of
Default shall limit Landlord's rights.
If an Event of Default shall have occurred and be continuing, whether or not Landlord elects
to terminate this Lease, Landlord may enter upon and repossess the Premises (said repossession
being hereinafter referred to as "Repossession") by force, summary proceedings, ejectment or
otherwise, and may remove Tenant and all other persons and property therefrom.
No termination of this Lease shall relieve Tenant of its liabilities and obligations under this
Lease, all of which shall survive any such termination or Repossession. In the event of any such
termination or Repossession, Tenant shall pay to Landlord the Rent and other sums and charges to be
paid by Tenant up to the time of such termination or Repossession
In addition to all other remedies of Landlord, Landlord shall be entitled to reimbursement
upon demand of all reasonable attorney’s fees incurred by Landlord in connection with any Event of
Default.
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Landlord shall in no event be considered to be in default of Landlord's obligations hereunder
until the expiration of a reasonable time after notice of default from Tenant.
16. SUBORDINATION:
For the purposes of this Section, the term "Mortgage" shall mean at any time, any mortgage
of record now or hereafter placed against the Building, any increase, amendment, extension,
refinancing or recasting of a Mortgage and, in the case of a sale or lease and leaseback by Landlord
of all or any part of the Building, the lease creating the leaseback. For the purposes hereof, a
Mortgage shall be deemed to continue in effect after foreclosure thereof until expiration of the period
of redemption therefrom.
This Lease is subject and subordinate to the lien of any Mortgage which may now or hereafter
encumber the Building or any development of which the Building is a part. In confirmation of such
subordination, Tenant shall, at Landlord's request from time to time, promptly execute any certificate
or other document requested by the holder of the Mortgage. Tenant agrees that in the event that any
proceedings are brought for the foreclosure of any Mortgage, Tenant shall immediately and
automatically attorn to the purchaser at such foreclosure sale, as the landlord under this Lease, and
Tenant waives the provisions of any statute or rule of law, now or hereafter in effect, which may give
or purport to give Tenant any right to terminate or otherwise adversely affect this Lease or the
obligations of Tenant hereunder in the event that any such foreclosure proceeding is prosecuted or
completed. Neither the holder of the Mortgage (whether it acquires title by foreclosure or by deed in
lieu thereof) nor any purchaser at foreclosure sale shall be liable for any act or omission of Landlord
occurring prior to date of acquisition of title, nor subject to any offsets or defenses which Tenant
might have against Landlord nor bound by any prepayment by Tenant of more than one month's
installment of Rent nor by any modification of this Lease made subsequent to the granting of the
Mortgage unless consented to by the holder of the Mortgage. Notwithstanding anything to the
contrary in this Section, so long as Tenant is not in default under this Lease, this Lease shall remain
in full force and effect and the holder of the Mortgage and any purchaser at foreclosure sale thereof
shall not disturb Tenant's possession hereunder.
17. SALE OR MORTGAGE OF THE BUILDING:
In the event of a sale of the Building, Landlord shall be relieved of all liability under this
Lease accruing from and after the date of sale provided Landlord has obtained the written agreement
of its transferee or assignee to assume and carry out all of the covenants and obligations of the
Landlord hereunder.
The Tenant agrees at any time and from time to time, upon not less than ten days prior written
request by Landlord, to execute, acknowledge and deliver to Landlord a statement in writing
certifying that the Lease is not modified (or modified, stating the modification) that the Lease is in
full force and affect, stating the dates to which the Rent has been paid in advance and stating whether
the Landlord is in default hereunder. It is intended that any such statement may be relied upon by
any prospective purchaser of the fee or mortgagee or assignee of any mortgage upon the Building or
real estate.
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18. WAIVER:
One or more waivers of any covenant, term or condition of this Lease by either party shall not
be construed by the other party as a waiver of a subsequent breach of the same covenant, term or
condition. The consent or approval of either party to or of any act by the other party of a nature
requiring consent or approval shall not be deemed to waive or render unnecessary consent to or
approval of any subsequent similar act. The failure or delay on the part of either party to enforce or
exercise at any time any of the provisions, rights or remedies in this Lease shall in no way be
construed to be a waiver thereof, nor in any way to affect the validity of this Lease or any part
thereof, or the right of the party to thereafter enforce each and every such provision, right or remedy.
19. RULES AND REGULATIONS:
Tenant shall use the Premises and the common areas of the Building in accordance with the
terms of this Lease and such additional rules and regulations as may from time to time be reasonably
made by Landlord for the general safety, comfort and convenience of the Landlord, occupants and
tenants of the Building, and Tenant shall use its best efforts to cause Tenant's customers, employees
and invitees to abide by such rules and regulations. Landlord shall in no event be responsible to
Tenant for enforcement of such rules and regulations against other tenants. These Rules and
Regulations shall be in addition to, and shall not be construed to in any way modify or amend, in
whole or in part, the covenants and conditions of any lease of the Premises. If any provision of these
rules and regulations conflicts with any provision of the Lease, the terms of the Lease shall prevail.
20. COVENANT OF QUIET ENJOYMENT:
Landlord covenants that it has the right to make this Lease for the term aforesaid and
covenants that if Tenant shall pay the rent and perform all of the covenants, terms and conditions of
this Lease to be performed by Tenant, Tenant shall, during the Term hereby created, freely,
peaceably and quietly occupy and enjoy the full possession of the Premises.
21. NO REPRESENTATIONS BY LANDLORD:
Neither Landlord nor any agent or employee of Landlord has made any representations or
promises with respect to the Premises or the Building except as herein expressly set forth, and no
right, privileges, easements or licenses are acquired by Tenant except as herein expressly set forth.
No exhibit attached to this Lease nor any other materials provided by Landlord shall constitute a
warranty or agreement as to the configuration of the Building or the occupants thereof. Landlord
reserves the right from time to time to modify the Building, including common areas, appurtenances
and rentable areas, without in any case reducing the obligations of Tenant hereunder. Tenant has no
right to light or air over any premises adjoining the Building. Tenant, by taking possession of the
Premises, shall accept the same "as is" except as expressly provided in this Lease and such taking of
possession shall be conclusive evidence that the Premises and the Building are in good and
satisfactory condition at the time of such taking of possession. In addition to and without limitation
of the immediately preceding sentence, Tenant agrees that it is leasing the Premises on an "AS IS",
"WHERE IS" and "WITH ALL FAULTS" basis, based upon its own judgment, and hereby disclaims
any reliance upon any statement or representation whatsoever made by Landlord. LANDLORD
MAKES NO WARRANTY WITH RESPECT TO THE PREMISES, THE BUILDING OR ANY
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416585v5 SJR MU210-35
PART THEREOF, EXPRESS OR IMPLIED, AND LANDLORD SPECIFICALLY DISCLAIMS
ANY WARRANTY OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR
PURPOSE AND ANY LIABILITY FOR CONSEQUENTIAL DAMAGES ARISING OUT OF THE
USE OF OR THE INABILITY TO USE THE PREMISES, THE BUILDING OR ANY PART
THEREOF.
22. NOTICES:
All notices or other communications hereunder shall be in writing and shall be effective if
hand delivered or sent by registered or certified first-class mail, postage prepaid, or by overnight
express service which maintains confirmation of delivery, (i) if to Landlord at Landlord Address set
forth in the Data Sheet, and (ii) if to Tenant, at the Premises, unless notice of a change of address is
given pursuant to the provisions of this Section. The day notice is given by mail shall be deemed to
be the day following the day of mailing. If acceptance is refused, as evidenced by the records of the
Postal Service or overnight delivery service, notice shall be deemed given on the date acceptance is
refused.
23. SURRENDER; HOLDING OVER:
Upon the expiration of this Lease or the earlier termination of Tenant's right to possession,
Tenant shall immediately vacate the Premises, remove all of its property therefrom and leave the
Premises in the condition required by this Lease. Any property not removed shall be deemed
abandoned, and Tenant shall be liable for all costs of removal and Tenant shall indemnify, defend
and hold Landlord harmless from any cost or liability due to disposition of any property in the
Premises in which a person other than Tenant has an interest. Should Tenant fail to surrender the
Premises in the condition required by the Lease, Landlord shall be entitled to take whatever steps
may, in Landlord’s sole discretion, be required to restore the Premises to said condition and Tenant
agrees that it shall pay to Landlord all costs incurred by Landlord in so restoring the premises.
Should Tenant continue to occupy the Premises, or any part thereof, after the expiration or
termination of the Term, whether with or without the consent of Landlord, such tenancy shall be
from month to month and Tenant shall pay Landlord the (i) the rent last in effect plus 3 percent, for
the first six months of any such period of holding over and (ii) following such six month holdover
period rent shall continue until a new rental rate is agreed upon.
24. LANDLORD REPRESENTATIONS:
Landlord agrees to be bound by the terms and conditions of this Lease.
25. MISCELLANEOUS:
(a) The captions in this Lease are for convenience only and are not a part of this
Lease.
(b) If more than one person or entity shall sign this Lease as Tenant, the
obligations set forth herein shall be deemed joint and several obligations of each such party.
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416585v5 SJR MU210-35
(c) Time is of the essence.
(d) If any provision of this Lease is invalid or unenforceable to any extent, then
such provision and the remainder of this Lease shall continue in effect and be enforceable to the
fullest extent permitted by law.
(e) This Lease contains the entire agreement of the parties hereto with respect to
the Premises and Building. This Lease may be modified only by a writing executed and delivered by
both parties.
(f) Nothing contained in this Lease shall be deemed or construed to create a
partnership or joint venture of or between Landlord and Tenant, or to create any other relationship
between the parties other than that of landlord and tenant.
(g) This Lease shall be binding upon and inure to the benefit of the parties hereto
and, subject to the restrictions and limitations herein contained, their respective heirs, successors and
assigns.
(h) This is governed by and shall be construed according to the laws of the State
of Minnesota.
26. TAX COMPLIANCE AND STATUS OF PREMISES:
It is the intention of the parties hereto that nothing contained in this Lease or through the
performance of this Lease shall any change occur in the tax status of the Premises that existed prior
to the entering into of this Lease and that in lieu of each clause, term or provision of this Lease that is
illegal, invalid, unenforceable, or not in compliance with property tax requirements, there be added
as part of this Lease a clause, term, provision, or requirement similar to such illegal, invalid or
unenforceable clause, term, provision, or property tax requirement as may be possible and would be
legal, valid, and enforceable, to retain the property tax status of the Premises that existed prior to the
entering into of this Lease. In the event that the property tax status for the Premises is changed by
any taxing jurisdiction and cannot be returned to the tax status that existed prior to the entering into
of this Lease by modification of the terms of this Lease, the Tenant shall be responsible for any tax
payments or payments in lieu of taxes should the Premises, or a portion thereof, be deemed taxable
property for any reason by any taxing jurisdiction as a result of this Lease or the use being made
thereof of the Premises, and the Tenant shall immediately remit any required payments to the
appropriate taxing jurisdiction.
27. [INTENTIONALLY BLANK]
28. ADDITIONAL HAZARDS:
Tenant covenants and agrees that it will not do or permit anything to be done in or upon the
Premises or bring in anything or keep anything therein which shall cause the cancellation of
Landlord’s insurance policies, or increase the rate of insurance, on the Building, above the standard
rate on said premises and buildings as rental property for similar uses. Tenant further agrees that in
the event it shall do anything to so increase the insurance rate, Tenant shall promptly pay to Landlord
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416585v5 SJR MU210-35
on demand any such increase resulting therefrom, which shall be due and payable as “additional
rent” hereunder. At Tenant’s request, Landlord shall make available for Tenant’s inspection during
regular business hours, all documents pertaining to Landlord’s calculation of Tenant’s “additional
rent” required under this section. Said “additional rent” shall be due and payable as billed by
Landlord.
29. INVALIDATION OF PARTICULAR PROVISIONS:
If any clause, term or provision of this Lease, or the application thereof to any person or
circumstance shall to any extent, be invalid, unenforceable, or not in compliance with state bond
financed property requirements as set forth in Paragraph 30, the remainder of this Lease, or the
application of such term or provision to persons or circumstances other than those as to which it is
held invalid or unenforceable, shall not be affected thereby, and each term and provision of this
Lease shall be valid and be enforced to the fullest extent permitted by law. It is the intention of the
parties hereto that in lieu of each clause, term or provision of this Lease that is illegal, invalid,
unenforceable, or not in compliance with state bond financed property requirements, there be added
as part of this Lease a clause, term, provision, or state bond financed property requirement similar to
such illegal, invalid or unenforceable clause, term, provision, or state bond financed property
requirement as may be possible and would be legal, valid, and enforceable.
30. STATE BOND FINANCE PROPERTY ACKNOWLEDGEMENT AND
COMPLIANCE:
The Landlord and Tenant acknowledge that funding for a portion of the Premises was
obtained through a grant from the State of Minnesota’s Department of Children, Families and
Learning, and as such, the Premises is considered state bond financed property. Landlord states and
Tenant, to the best of its knowledge, without inquiry agrees that the following requirements
contained within this Lease are included to satisfy the state bond finance property requirements of
Minnesota Statutes Section 16A.695 for Use Agreements, to comply with the requirements contained
in the G.O. Compliance statutes, and pursuant to the Commissioner’s Order.
(a) ENTITY STATUS. The Landlord is defined as a public entity organized as a charter
city pursuant to Minnesota Statutes Chapter 410, and is thus, a Minnesota municipal corporation.
(b) DEMISED PREMISES OWNERSHIP. The Premises is owned solely and completely
by the Landlord, the City of Mounds View.
(c) AGREEMENT AUTHORITY. The Landlord has entered into this Lease with the
Tenant pursuant to Minnesota Statutes Section 471.15 and the City of Mounds View Municipal
Charter and Municipal Code.
(d) GOVERNMENTAL PROGRAM. This Lease is (i) being executed and entered into
to carry out a Governmental Program, (ii) such Governmental Program is the City of Mounds View
Parks and Recreation Program, including the operation of the Community Center and its
accompanying facilities, as well as the parks within the City and general recreational programming
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416585v5 SJR MU210-35
within the City; and (iii) such Governmental Program constitutes the Mounds View Parks and
Recreation Program and is authorized pursuant to Municipal Charter Section 6.02, Subdivision 1,
Municipal Code Section 106.05 and Chapter 405, and Minnesota Statutes Section 471.15.
(e) GOVERNMENTAL PROGRAM OVERSIGHT. The Landlord has accepted
financing through a Government Bonding Program. If required by the State for compliance
purposes, Tenant will provide the State the right to inspect and audit Tenant’s books and records for
its operations at the Premises, with each such review to show the program budget, revenues and
expenses.
(f) TERM OF THE USE AGREEMENT. As the Premises consists of land and
buildings, the term of this Lease as provided herein relating to the building and improvements, and
including all renewals which are solely at the option the Tenant, is for a period of time which is less
then 50% of the useful life of the Premises.
(g) TERMINATION OF THE USE AGREEMENT. This Lease allows for termination
by the Landlord, pursuant to Section 13.2, in the event of default hereunder by the Tenant. The
termination of this Lease is also allowed by the Landlord, pursuant to Section 16.13, in the event that
the Governmental Program is terminated or changed.
(h) COST OF OPERATION OF THE FACILITY (“PREMISES”). The Landlord
possesses specific statutory authority pursuant to Minnesota Statutes Section 471.15, the City’s
Municipal Charter Section 6.02, Subdivision 1, and the City’s Municipal Code Section 106.05 and
Chapter 405, to expend monies to operate and maintain the Premises.
(i) RECEIPT OF MONIES/COMPLIANCE WITH TAX CODE. It is contemplated and
understood by the parties to this Lease that the Landlord’s operation of the Premises is in compliance
with the tax code.
(j) SALE OF THE FACILITY (PREMISES).
(i) This Lease is free of any provisions which would require the Landlord to
sell the Premises for an amount less than the fair market value if it is to be
sold to a non-public entity.
(ii) This Lease is free of any provisions which would allow the Landlord to sell
the facility (Premises) without the Landlord first determining, by official
action, that the Premises is no longer usable or needed to carry out the
Governmental Program.
(iii) This Lease is free of any provisions which would require the Landlord to sell
the Premises without first obtaining the written consent of the Commissioner
of Finance, pursuant to Minn. Statutes Section 16A. 695, Subdivision 3, and
the Commissioner’s Order.
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(iv) This Lease is free of any provisions which would cause the matter of
distribution of the proceeds of the sale of the Premises, which is not provided
for nor contemplated in this Lease, to violate the provisions contained in the
G.O. Compliance Bill and the Commissioner’s Order (Minn. Statutes Section
16A.693, Subdivision 3 and the Commissioner’s Order).
(v) This Lease contains no provisions concerning the sale of the Premises or the
termination of the Governmental Program.
Dippin Chocolate, LLC, as Tenant of the Building and Premises herein, hereby agrees to the
terms of this Lease.
DIPPIN CHOCOLATE, LLC
By:
______________________________
Its:
The City of Mounds View, as Landlord of the Building and Premises herein, hereby agrees to the
terms of this Lease.
CITY OF MOUNDS VIEW
By:
Carol A. Mueller
Its: Mayor
By: ___________________________
James Ericson
Its: City Administrator
16
416585v5 SJR MU210-35
EXHIBIT A
BUILDING: “The Mounds View Community Center”
PREMISES: “The Kitchen”
Item No: 8B
Meeting Date: January 23, 2017
Type of Business: Consent Agenda
Administrator Review: ____
City of Mounds View Staff Report To: Honorable Mayor and City Council
From: Brian Erickson, Public Works Director
Item Title/Subject: Resolution 8698, Appoint Parks and Recreation and Forestry
Commission Chairperson
Discussion:
The Mounds View Municipal Code Section 405.02, Subd.1 states, “Based upon the
recommendation of the Parks and Recreation Commission, the City Council shall appoint a
chairperson.” At the December 15, 2016 Parks and Recreation and Forestry Commission
meeting, the Commission recommended that Commissioner Gerald Arel be appointed as the
chairperson.
The Parks and Recreation and Forestry Commission also appointed Commissioner John
Kroeger as Vice-Chairperson.
Recommendation:
Staff recommends that Resolution 8698 appointing Gerald Arel as the Chairperson of the Parks
and Recreation and Forestry Commission be approved.
Respectfully submitted,
Brian Erickson – Public Works Director/City Engineer
RESOLUTION 8698
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
APPOINT PARKS AND RECREATION AND FORESTRY COMMISSION CHAIRPERSON
WHEREAS, the City of Mounds View Municipal Code, Section 405.01 establishes a
Parks and Recreation and Forestry Commission for the purpose of advising the City Council on
the operation of public recreation, parks and playgrounds; and
WHEREAS, the City of Mounds View Municipal Code, Section 405.02, Subd. 1 states,
“Based upon the recommendation of the Parks and Recreation Commission, the City Council
shall appoint a chairperson”; and
WHEREAS, at their December 15, 2016 meeting, the Parks and Recreation and
Forestry Commission passed a motion recommending that Commissioner Gerald Arel be
appointed by the City Council as the chairperson for Parks and Recreation and Forestry
Commission for 2017.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mounds View,
Ramsey County, Minnesota that Gerald Arel be appointed as the chairperson of the Parks and
Recreation and Forestry Commission for 2017.
Adopted this 23rd day of January, 2017
____________________________________
Carol A. Mueller, Mayor
ATTEST:
____________________________________
James Ericson, City Administrator
(SEAL)
493529v3 AMB MU210-111
Item No: 08C
Meeting Date: January 23, 2017
Type of Business: Consent
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: James Ericson, City Administrator
Item Title/Subject: Resolution 8702 Approving a Settlement Agreement and Release
of Claims
Introduction:
The City was involved in a dispute with a retired employee Michael Sommer. The matter
reached a negotiated settlement. It is recommended that the council adopt a resolution
approving the settlement agreement
Recommendation:
Staff and the City Attorney recommend approval of Resolution 8702, a resolution approving a
settlement agreement and release of claims relating to the dispute with Michael Sommer.
Respectfully submitted,
________________________
James Ericson
City Administrator
Attachments:
1. Resolution 8702
2. Settlement Agreement and Release of Claims
493529v3 AMB MU210-111
RESOLUTION NO. 8702
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION APPROVING SETTLEMENT
AGREEMENT AND RELEASE
WHEREAS, the city of Mounds View (“City”) previously employed Michael Sommer
(“Employee”) in the position of chief of police; and
WHEREAS, on October 30, 2009, the Employee retired from employment with the City; and
WHEREAS, disputes arose between the parties subsequent to Employee’s retirement from the
City which resulted in the following:
a. EEOC Charge Number 444-2016-01024.
b. MDHR Charge Number 66697.
WHEREAS, it is the desire and intent of the parties to fully and completely resolve, settle, and
compromise any and all claims that may exist between the parties in order to avoid the expense and
uncertainty of further litigation; and
WHEREAS, the City Council has fully considered the terms of the Settlement Agreement and
Release and has determined that it is in the best interests of the community to approve it as presented.
NOW, THEREFORE, BE IT RESOLVED, that the above-referenced recitals are
incorporated herein to this Resolution.
NOW, THEREFORE, BE IT FURTHER RESOLVED, that the Settlement Agreement and
Release attached hereto as Exhibit A is hereby approved by the City Council.
NOW, THEREFORE, BE IT FINALLY RESOLVED THAT, the City Administrator and
City’s attorneys are hereby authorized and directed to take any and all additional steps and actions
necessary or convenient to file or record the appropriate documents and/or stipulations to facilitate the
directives of the City Council as provided herein in order to accomplish the intent of this Resolution.
493529v3 AMB MU210-111
Adopted by the City Council of the City of Mounds View this 23rd day of January, 2017.
CITY OF MOUNDS VIEW
_____________________________
Carol A. Mueller, Mayor
ATTEST:
_________________________________
James Ericson, City Administrator
(seal)
493529v3 AMB MU210-111
EXHIBIT A
SETTLEMENT AGREEMENT
AND RELEASE OF CLAIMS
This Settlement Agreement and Release of Claims is entered into by and between Michael
Sommer, (“Sommer”) and the City of Mounds View (“the City”).
WHEREAS, Sommer filed a charge of age discrimination (Charge No. 444-2016-01024)
against the City with the Equal Employment Opportunity Commission (EEOC), under the Age
Discrimination in Employment Act of 1967, as amended; and
WHEREAS, a companion charge of age discrimination (Charge No. 66697) was also filed with
the Minnesota Department of Human rights (“MDHR”); and
WHEREAS, the parties now seek to resolve all claims and rights arising out of or related to
Sommer’s employment with the City including but not limited to all of Sommer’s claims of
discrimination against the City for damages, attorneys’ fees and injunctive relief.
NOW, THEREFORE, in consideration of the mutual covenants and agreements as set forth
herein, the sufficiency of which is hereby acknowledged by both parties, Sommer and the City agree as
follows:
1. Settlement Amount/Dismissal. In full and complete settlement of all claims and causes
of action by Sommer, including but not limited to any claims for unpaid damages, wages, benefits,
overtime, attorneys’ fees and costs, the City agrees to pay Sommer a total gross amount of Four
Thousand and 00/100ths Dollars ($4,000.00). This Settlement Amount will be paid to Sommer by the
City within ten (10) days after the expiration of the last rescission period identified in Paragraph 4
herein. Sommer agrees that upon payment of the Settlement Amount to him by the City, all charges of
discrimination filed with either the EEOC or the MDHR shall be dismissed and that Sommer will
execute any documents necessary to effectuate such dismissal.
2. Taxes. Sommer understands and agrees that he shall be responsible for any tax
obligation, state or federal, as a result of this settlement amount, and he agrees to hold the City
harmless as to any of Sommer’s tax liabilities.
3. Consideration. The parties acknowledge and agree that the terms described herein
constitute sufficient consideration for this “Settlement Agreement and Release of Claims”.
4. Release. In consideration of the above referenced Settlement Amount in paragraph 1,
Sommer, for himself, his heirs, administrators, representatives, successors, and assigns, hereby releases
and forever discharges the City, and its attorneys, agents, representatives, employees, former
employees, insurers, and assigns of and from any and all, past and present claims, demands,
obligations, actions, or causes of action at law or in equity, whether arising by statute, common law,
contract, or otherwise, and for all claims for damages of whatever kind or nature, and for all claims for
attorneys’ fees and costs and expenses, including but not limited to all claims of any kind arising out of
or related to Sommer’s employment with the City, including but not limited to claims for harassment,
discrimination, wrongful termination, defamation, intentional/ reckless/negligent infliction of
493529v3 AMB MU210-111
emotional distress, constructive discharge, claims under the City’s employee handbook, or any actions
arising from discussions in efforts to negotiate this Agreement.
In consideration of the Settlement Amount referenced in Paragraph 1, Sommer further
acknowledges that he is knowingly and voluntarily waiving all possible rights or claims arising under:
the Minnesota Human Rights Act, Minnesota Statutes, Chapter 363A; Equal Employment Opportunity
Act; Americans with Disabilities Act of 1990, as amended; Age Discrimination in Employment Act;
Title VII of the Civil Rights Act, 42 U.S.C. §§ 2000e – e-17; Family and Medical Leave Act, 29 U.S.C. §§
2601-54; Americans with Disabilities Act, 42 U.S.C. § 12101-117; the Rehabilitation Act of 1973, 29
U.S.C. § 701-96i; the Public Employment Labor Relations Act, Minn. Stat. §§ 179A.01-.30; the Minnesota
Occupational Health and Safety Act, Minn. Stat. §§ 182.65-.676; the Minnesota Whistleblower Act, Minn.
Stat. §§ 181.931-.935; and the state and federal Fair Labor Standards Acts, 29 U.S.C. §§ 201-19, Minn.
Stat. §§ 177.21-.35 and Minn. Stat. § 471.61. Sommer acknowledges that he has had an opportunity to
consult with an attorney concerning the waiver and content of the rights available under these laws.
It is specifically understood that the aforementioned Release is intended to include only those
claims arising from any conduct, event, or transaction occurring prior to the date of this Agreement and
intended to include any and all claims for unknown injuries and/or damages, unanticipated injuries
and/or damages, and unexpected consequences of injuries and/or damages.
Sommer further acknowledges that he fully understands the terms of this Settlement Agreement
and Release of Claims, that pursuant to the Age Discrimination in Employment Act, he has had 21
days to consider it and seek the advice of his attorney and/or financial advisor, and that he is signing it
freely and voluntarily. Sommer understands that if he signs this Agreement and Release prior to the
expiration of the 21-day period, that act constitutes a waiver of his right to consider the Agreement for
21 days.
5. Representation by Counsel. Sommer represents to the City that he has had an
opportunity to consult counsel of his choosing with respect to this Agreement and all matters covered
by and relating to it. Sommer further agrees and represents that he has not received or relied upon any
advice or representations by the City or the City’s counsel in entering into this Agreement. The
Agreement shall be binding upon Sommer and his attorneys and inure to the benefit of the City and its
respective successors, assigns, subsidiaries, heirs, executors, personal representatives, and agents.
6. No Admission of Liability. The parties understand and agree that this Agreement is a
compromise of disputed claims and that any promises or payments made pursuant to this Agreement
are not be construed as an admission of liability on the part of any of the parties.
7. Voluntary and Knowing Action. The parties acknowledge that they have thoroughly
read and understand the terms of the Agreement, and that they are voluntarily entering into the
Agreement to resolve the matter.
8. Rescission/Revocation. This Agreement is subject to the following
rescission/revocation periods as provided by law:
Act Revocation Period
Age Discrimination in Employment Act, 7 days
29 U.S.C. § 626(f) (1) (G)
493529v3 AMB MU210-111
Minnesota Human Rights Act, 15 days
Minn. Stat. § 363A.031, Subd. 2
Once the Agreement has been executed, Sommer understands that he has the right to rescind and/or
revoke the waivers and releases contained in this Agreement. To be effective, the rescission or
revocation must be in writing and delivered to the City either by hand or by mail within the 7-day
period for the Age Discrimination in Employment Act, or within the 15-day period for the
Minnesota Human Rights Act. If delivered by mail, the rescission or revocation must be:
(a) postmarked within the applicable 7- or 15-day period;
(b) properly addressed to the City; and
(c) sent by certified mail, return receipt requested.
The City’s address is as follows: City of Mounds View
Attention: City Administrator James Ericson
2401 County Road 10
Mounds View, MN 55112
9. Severability. Any provision of this Agreement that is prohibited or unenforceable shall
be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions hereof.
10. Complete Agreement. The parties acknowledge and represent that no promise or
representation not contained in the Agreement has been made to them.
11. Governing Law. The Agreement will be construed, enforced, and governed in
accordance with the laws of the State of Minnesota.
12. Counterparts. This Agreement may be executed in one or more counterparts which,
taken together, shall constitute but a single agreement.
IN WITNESS WHEREOF, the City of Mounds View and Michael Sommer have
approved and executed this Settlement Agreement and Release of Claims on the day and year as set
forth below.
493529v3 AMB MU210-111
Dated: January 23, 2017. CITY OF MOUNDS VIEW
BY: ________________________________
Carol A. Mueller, Mayor
BY: ________________________________
James Ericson, City Administrator
Dated: _________________, 2017. __________________________________
Michael Sommer
PROCEEDINGS OF THE MOUNDS VIEW CITY COUNCIL 1
CITY OF MOUNDS VIEW 2
RAMSEY COUNTY, MINNESOTA 3
4
Regular Meeting 5
January 9, 2017 6
Mounds View City Hall 7
2401 Mounds View Boulevard, Mounds View, MN 55112 8
7:00 P.M. 9
10
11
1. MEETING IS CALLED TO ORDER 12
13
2. PLEDGE OF ALLEGIANCE 14
15
3. ROLL CALL: Gunn, Hull, Meehlhause, Mueller 16
17
NOT PRESENT: None. 18
19
4. APPROVAL OF AGENDA 20
A. Monday, January 9, 2017, City Council Agenda. 21
22
MOTION/SECOND: Gunn/Hull. To Approve the Monday, January 9, 2017, agenda as revised. 23
24
Ayes – 4 Nays – 0 Motion carried. 25
26
5. PUBLIC INPUT 27
28
None. 29
30
6. SPECIAL ORDER OF BUSINESS 31
32
A. Presentation by Sara Criger, Mercy Hospital President, Reviewing Mercy 33
and Unity Hospitals Strategic Direction 34
35
Sara Criger, Mercy Hospital President, provided the Council with a presentation on the hospitals 36
strategic direction for the future. She discussed the plans Allina had for the Mercy and Unity 37
campuses. She reviewed the awards both hospitals have received in recent years and noted both 38
campuses were very strong. She described how Allina was redefining hospital to health care in 39
order to reward health and wellness. She understood status quo was no longer an option as the 40
average daily census and surgical cases were on the decline. She explained Allina would be 41
charting a new path while keeping the most frequently used services on both campuses, while 42
improving access to high quality specialty services. She described the changes that have been 43
made at the campuses that would allow Alina to care for the community together through one 44
hospital on two campuses. She commented on the much-needed mental health and addiction 45
Mounds View City Council January 9, 2017
Regular Meeting Page 2
services that would be offered at Unity in 2017. She thanked the Council for their time and 1
stated she was looking forward to being a continued engaging partner to the community. 2
3
City Administrator Ericson asked if new employees would be hired or lost through the changes 4
being proposed at both hospitals. Ms. Criger explained the proposed plans would allow the 5
hospitals to enhance the services provided which would lead to a growth in jobs. 6
7
Mayor Mueller commented she had heard of the hospital campuses merging last summer. She 8
questioned why the hospital had not been more transparent with the public regarding their plans. 9
Ms. Criger stated Unity and Mercy have been under the Allina umbrella for the past decade. She 10
reported the recent changes to the mother/baby consolidation happened fairly quickly and this led 11
to a reevaluation of the programs offered at both campuses. 12
13
Council Member Gunn inquired if the clinic services would change. Ms. Criger reported the 14
clinic services would not be changing. 15
16
Mayor Mueller explained she has a close family member that has utilized the emergency services 17
at Unity on a regular basis and she wanted to see this continue as much as possible. Ms. Criger 18
stated emergency services would continue at Unity for the time being. 19
20
Linda Hamilton, 7856 Monroe Street in Spring Lake Park, noted she was the Director of the 21
North Suburban Hospital Board. She asked how many beds would be added for mental health at 22
Unity. Ms. Criger stated no beds would be added, but rather all mental health patients would 23
receive private rooms. 24
25
Bridget Lundquist, 2849 Bronson Drive, explained she is the newly elected North Suburban 26
Hospital Board member for Mounds View. She reported Allina would be requesting the Council 27
dissolve the hospital board. She believed Allina had not been very transparent in their actions. 28
She expressed frustration with how services would be switching between the two campuses. She 29
had concerns with the time that it would take people in emergency situations to reach Mercy 30
from the Unity service area. 31
32
Council Member Gunn referred to an article regarding the hospitals in the Sun Focus from 33
January and encouraged the public to review this article. 34
35
Council Member Meehlhause understood that three communities have voted in favor to dissolve 36
the hospital board. He believed this meant the hospital board was therefore dissolved. He stated 37
the City Council had no jurisdiction or authority over the taxing of the hospital district. 38
39
Ms. Lundquist understood this may be the case, however, she encouraged Mounds View to hold 40
a public meeting in order to raise awareness of the situation. 41
42
Mayor Mueller inquired if the hospital board meetings were open to the public. Ms. Lundquist 43
reported this was the case. She stated the next meeting would be held on Wednesday, January 44
11th at 6:30 p.m at Unity Hospital. 45
Mounds View City Council January 9, 2017
Regular Meeting Page 3
1
Barbara Goodwill Bishoff, resident of Spring Lake Park, requested the Council save the hospital 2
board. She noted every year $1.7 million has been taken from the five member cities and given 3
to Unity Hospital. She reported this money has been used to fund the changes. She explained if 4
the hospital board were dissolved the remaining funds would be returned to the member cities. It 5
was noted Blaine was interested in the funds being returned on a per capita basis, which would 6
give them 80%, Spring Lake Park wanted to use the 1960 per capita and Hilltop wants an even 7
five way split of the assets. She supported Council Member Meehlhause’s idea to evaluate the 8
50-year investment each City has made. She expressed frustration with the lack of information 9
Allina has provided and believed it would be a hardship on local residents to move certain 10
services from Unity to Mercy. 11
12
Ms. Hamilton discussed the information she learned while door knocking during the recent 13
election. She explained that residents are concerned with being transferred from Unity to Mercy. 14
She encouraged the community to stick together in order to learn from Allina what services are 15
and are not being offered on each campus. 16
17
Mayor Mueller reopened the Public Input portion of the meeting. 18
19
Hafiz Mahmood, 5126 Long Lake Road, expressed concern with the City construction work on 20
his property. He noted the City workers broke the sewage pipe on his property. The contractors 21
filled the dirt back in without making the repair. He explained this led to his basement being 22
flooded and damaged. He stated he spoke with the City technicians regarding this matter. This 23
led the City to fixing the one foot portion of pipe that had been damaged. He has since filed a 24
claim for the cost of the water backup in his basement. He understood the City had insurance 25
through the League of Minnesota Cities Insurance Trust, and that it had determined the City was 26
not liable due to the fact the pipe was not laid in accordance with City Ordinances. He stated he 27
has spoken with a number of different lawyers and requested the City reconsider his request 28
noting that his sewer pipe had been inspected when the service was installed. 29
30
Mayor Mueller believed this issue was appropriately reviewed by the League of Minnesota Cities 31
Insurance Trust. She understood the claim was denied and encouraged Mr. Mahmood speak with 32
the contractor that completed the work. 33
34
Mr. Mahmood indicated he had spoken with the contractor who was claiming he was not 35
responsible. He requested assistance from the City to recover the costs that he has incurred. He 36
believed the City should be liable for the placement and installation of the pipes. 37
38
Mayor Mueller commented that at this time the Council has received a letter from the League of 39
Minnesota Cities Insurance Trust noting that the claim has been denied, and that the City was not 40
liable. As such, Mayor Mueller indicated the City would be taking no further action. 41
42
7. COUNCIL BUSINESS 43
A. Resolution 8696, Approve Plans and Specifications for Public Works Facility 44
and Authorize Advertisement for Bids. 45
Mounds View City Council January 9, 2017
Regular Meeting Page 4
1
Public Works Director Erickson requested the Council approve plans and specifications for the 2
Public Works Facility and authorize advertisement for bids. He reviewed the design plans briefly 3
noting only the plumbing plans needed further review. He described how the plans and specs 4
would be published for review. It was noted the bid opening would occur on February 21st with 5
the Council awarding the bid on February 27th. He estimated the project would cost $6.9 million 6
and discussed the project costs the City has incurred to date. Staff reviewed the project details 7
further with the Council and recommended approval. 8
9
Mayor Mueller asked what the impact would be on the average Mounds View household if the 10
Public Works Facility project were funded through bonds. Finance Director Beer stated this 11
would lead to roughly a 10% tax levy increase. 12
13
Mayor Mueller questioned if funding from the levy reduction fund could be used to assist with 14
this project. Finance Director Beer stated this was possible. 15
16
Council Member Hull asked if the bonds were for 15 or 20 years. Finance Director Beer reported 17
the City would be using 20 year bonds. 18
19
MOTION/SECOND: Meehlhause/Gunn. To Waive the Reading and Adopt Resolution 8696, 20
Approve Plans and Specifications for Public Works Facility and Authorize Advertisement for 21
Bids. 22
23
Council Member Meehlhause requested staff provide the Council with an updated spreadsheet on 24
the financing for the Public Works Facility. 25
26
Ayes – 4 Nays – 0 Motion carried. 27
28
B. Introduction and First Reading of Ordinance 931, an Ordinance Amending 29
Section 105.04 of the Municipal Code Regarding Council Meeting Times. 30
31
City Administrator Ericson requested the Council introduce an Ordinance that would amend City 32
Code regarding Council meeting times. He stated the Council discussed changing their meeting 33
start times last fall to reduce staff comp time. He noted the public would still have the same 34
access to the meetings if the time were pushed up. Staff explained the Council was considering 35
moving the meeting start time to 6:00 p.m. He reported the Ordinance would not take effect until 36
early March. 37
38
MOTION/SECOND: Gunn/Hull. To Waive the First Reading and Introduce Ordinance 931, an 39
Ordinance Amending Section 105.04 of the Municipal Code Regarding Council Meeting Times. 40
41
Mayor Mueller feared that a 6:00 p.m. start time may hinder some residents from being on time 42
for Public Input. However, if the Council could be flexible with this agenda item she could 43
support the start time change. 44
45
Mounds View City Council January 9, 2017
Regular Meeting Page 5
Ayes – 4 Nays – 0 Motion carried. 1
2
C. Resolution 8695, Authorizing Ehlers & Associates, Inc., and Kennedy & 3
Graven Chartered to act as Financial Advisor and Bond Counsel for the 4
Issuance for General Obligation Capital Improvement Plan Bonds for 5
Financing the Construction of a Public Works Facility. 6
7
Finance Director Beer requested the Council authorize Ehlers & Associates and Kennedy & 8
Graven to act as the Financial Advisor and Bond Counsel for the issuance of general obligation 9
capital improvement plan bonds for financing the construction of the Public Works Facility. He 10
explained the City has worked with Ehlers and Kennedy & Graven in the past and these entities 11
have provided a competitive quote for their services. 12
13
MOTION/SECOND: Meehlhause/Hull. To Waive the Reading and Adopt Resolution 8695, 14
Authorizing Ehlers & Associates, Inc., and Kennedy & Graven Chartered to act as Financial 15
Advisor and Bond Counsel for the Issuance for General Obligation Capital Improvement Plan 16
Bonds for Financing the Construction of a Public Works Facility. 17
18
Ayes – 4 Nays – 0 Motion carried. 19
20
8. CONSENT AGENDA 21
A. Resolution 8697, Appointment of Planning Commission Chairperson. 22
B. Resolution 8694, Accepting Miscellaneous Cash Donations for 2016. 23
24
MOTION/SECOND: Gunn/Meehlhause. To Approve the Consent Agenda as presented. 25
26
Ayes – 4 Nays – 0 Motion carried. 27
28
9. JUST AND CORRECT CLAIMS 29
30
Finance Director Beer answered the Council's questions related to claims. 31
32
MOTION/SECOND: Gunn/Meehlhause. To Approve the Just and Correct Claims as presented. 33
34
Ayes – 4 Nays – 0 Motion carried. 35
36
10. APPROVAL OF MINUTES 37
A. December 12, 2016, City Council Meeting Minutes. 38
Mounds View City Council January 9, 2017
Regular Meeting Page 6
1
Council Member Meehlhause requested a correction on Page 6, Line 16 stating Jerry’s last name 2
should be spelled Kunz, also changing Sidney to Cindy. 3
4
Council Member Meehlhause requested a correction on Page 10, Line 34 changing the Mounds 5
View Business Council to the North Metro Business Council. 6
7
Mayor Mueller requested a correction on Page 10, Line 15 noting the Mayor was presented with 8
a card and not a plaque. 9
10
Mayor Mueller noted a correction on Page 11, Line 44 stating Boy Scouts were in attendance and 11
not Cub Scouts. 12
13
Mayor Mueller requested the minutes reflect that Boy Scout Troop #416 assisted with the Pledge 14
of Allegiance. 15
16
MOTION/SECOND: Gunn/Hull. To Approve the December 12, 2016, City Council meeting 17
minutes as corrected. 18
19
Ayes – 4 Nays – 0 Motion carried. 20
21
B. December 12, 2016, Executive Session Minutes. 22
23
MOTION/SECOND: Hull/Meehlhause. To Approve the December 12, 2016, Executive Session 24
meeting minutes as presented. 25
26
Ayes – 4 Nays – 0 Motion carried. 27
28
C. January 3, 2017, City Council Meeting Minutes. 29
30
Council Member Meehlhause requested a correction on Page 3, Line 30 stating Council Member 31
Gunn should be named as the alternate for the Anoka County Fire Board. 32
33
Council Member Gunn did not recall agreeing to this. City Administrator Ericson stated he 34
would review the Resolution. 35
36
Council Member Meehlhause requested a correction on Page 5, Line 18 removing the word the. 37
38
Mayor Mueller requested a correction on Page 7, Line 14 changing “to” to in. 39
40
MOTION/SECOND: Mueller/Meehlhause. To Approve the January 3, 2017, City Council 41
meeting minutes as corrected. 42
43
Ayes – 4 Nays – 0 Motion carried. 44
45
Mounds View City Council January 9, 2017
Regular Meeting Page 7
11. REPORTS 1
2
A. Reports of Mayor and Council. 3
4
Council Member Meehlhause reported the YMCA Advisory Committee met today. He was 5
pleased by the great work that occurred in 2016, noting that program revenue was up $76,000. In 6
addition, 120 youth from the community participated in the Youth in Government program. He 7
noted the Community Center hosted 270 events last year and overall, rentals were up 16%. He 8
provided further comment on increased park rentals. 9
10
Council Member Meehlhause noted he would be attending an NYFS Executive Committee 11
meeting this Friday and a Twin Cities Gateway Board meeting next Tuesday. 12
13
Mayor Mueller stated she attended the Five Cities meeting today along City Administrator 14
Ericson. 15
16
Mayor Mueller invited the public to attend the next Festival in the Park meeting on Tuesday, 17
January 17 th at 7:00 p.m. at City Hall. 18
19
Mayor Mueller explained the Council would be holding a retreat on Monday, January 30th at the 20
Community Center at 6:00 p.m. 21
22
B. Reports of Staff. 23
24
Finance Director Beer reported he was preparing for the annual audit at this time. 25
26
City Administrator Ericson stated the Council would be holding a Closed Session after this 27
meeting to discuss attorney/client privileged information, and on January 23rd to address labor 28
negotiation matters. 29
30
C. Reports of City Attorney. 31
32
There was nothing additional to report. 33
34
12. Next Council Work Session: Monday, February 6, 2017, at 7:00 p.m. 35
Next Council Meeting: Monday, January 23, 2017, at 7:00 p.m. 36
37
13. ADJOURNMENT 38
39
The meeting was adjourned at 8:56 p.m. 40
41
Transcribed by: 42
43
Heidi Guenther 44
TimeSaver Off Site Secretarial, Inc. 45
Item No: 11B
Meeting Date: January 23, 2017
Type of Business: Reports
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: James Ericson, City Administrator
Item Title/Subject: ADMINISTRATOR REPORTS
1. Review Agenda for Council Retreat
The City Council and Department Heads annually meet to review and establish goals,
objectives, action steps and initiatives. The exercise, referred to as the “Council Retreat”,
allows for free flowing Council and management staff discussions in an informal, semi-
structured environment for purposes of providing staff with direction for the year. The
format of the Council / Staff retreat has remained relatively unchanged over the years, with
the exception of 2014 when the City brought in an outside facilitator to assist with the
retreat. At this point, we’d like to review the agenda and discuss if the Council has any
additional objectives or expectations for the retreat. (Refer to the attached draft agenda.)
2. Discuss Receptionist / Recycling Coordinator Position
Desaree Crane and I have reviewed the Receptionist / Recycling Coordinator job
description and recommend some updates to the description (see attached.) Since mid-
October, the City has been utilizing a temp service (OfficeTeam) to assist with front counter
/ receptionist duties. The temp worker, Kerrie Kane, has been a wonderful addition and
has shown great initiative and motivation in her temporary role. Her contributions during
the early voting period were invaluable and much appreciated.
Ms. Kane has expressed a desire to work for the City on a permanent basis, which would
require that the City “buy out” her contract with OfficeTeam. The buyout, otherwise
referred to as the conversion fee, is less than I had originally thought, and is reduced for
each week the temp works in the assigned work place. As of today, January 23, 2017, Ms.
Kane is in her 15th week here in Mounds View. Ms. Kane has years of experience working
in an office environment and would be a good fit for the position as expressed by staff,
Council members and residents. If the Council consents, we would like to formally offer the
position to Ms. Kane and negotiate terms of employment which would be brought back to
Council for authorization on February 13, 2017.
3. Review Charter Commission Questions re: Charter Section 4.05
At a recent Council work meeting at which Charter Commission members had attended, a
council member brought up Chapter 4.05 of the Charter regarding the process for filling a
vacancy on the City Council. Chapter 4.05, Subdivision 1 indicates:
Administrative Reports
Page 2
“When a vacancy in an elected office of the City occurs with 365 days or more remaining in
the term of the vacated office, there shall be a special election held within ninety days after
the vacancy occurs to elect a successor to serve for the remainder of the unexpired term of
the office vacated.”
The election of Council member Carol Mueller to the position of mayor resulted in a
vacancy as she had two years remaining of her four-year Council term. In accordance
with the Charter, notice was published regarding the vacancy and that a subsequent
special election would be held on March 7, 2017. The City Council member asked if the
Charter Commission could look at amending Section 4.05 of the City Charter to allow for
an appointment process by the Council for vacancies of two years or less, rather than the
one year threshold as is presently the case.
At their last meeting on January 12, 2017, the Charter Commission discussed the request
and asked that the Council respond to a few questions to clarify the request, which are as
follows:
1. Provide in writing the language for the amendment specifically being requested.
2. Provide the Commission with specific reason for the requested change.
3. Identify the pro's and con's of the requested amendment.
4. Represent both the "why to make the change" and "why not to make the change". 5. In particular it would be helpful for the Council to discuss the original reason the
community approved the current language rather than just the financial aspect.
6. Is the Council as a whole body asking for this change or just one or two members?
Staff requests that the Council address the preceding questions to help the Charter
Commission respond. Draft amendment language is attached for Council consideration.
4. Special Election Costs
The City Council approved Resolution 8681 on December 12, 2016, regarding the Special
Election to fill the remaining two years of Mayor Mueller’s council seat. Ramsey County
indicated the anticipated cost for the special election will be $8,700, plus an additional
$1,500 if the County provides staff to deal with early voting requirements. Given the
troubles we experienced during the general election, I am suggesting that we take
advantage of County staff during the special election, if the Council consents.
Respectfully submitted,
________________________
James Ericson
City Administrator
CITY OF MOUNDS VIEW
CITY COUNCIL / STAFF RETREAT AGENDA
MOUNDS VIEW COMMUNITY CENTER
Monday, January 30, 2017
6 pm – 9 pm
6:00 pm Food & Informal discussion
6:15 pm Welcome—review retreat expectations (Mayor)
6:30 pm Council Communication Considerations (Administrator)
7:00 pm Council Identification (Administrator)
7:15 pm Review 2016 Council Goals and Priorities (Administrator)
7:30 pm Discuss Potential Goals and Priorities for 2016 (Council)
8:45 pm Discuss Potential Retreat Later in 2017 (Council)
9:00 pm Retreat Conclusion
Proposed Charter Commission Amendment Language
Section 4.05. Vacancy of Municipal Elected Office.
Subdivision 1. When a vacancy in an elected office of the City occurs with 730 365 days or
more remaining in the term of the vacated office, there shall be a special election held within ninety
days after the vacancy occurs to elect a successor to serve for the remainder of the unexpired term of
the office vacated.
Subdivision 2. The City Administrator shall give at least sixty days published prior notice of
such special election, except as set forth under Subdivision 5 of this section.
Subdivision 3. The procedure at such election and assumption of duties of elected officers
following such election shall conform as nearly as practicable to that prescribed for other municipal
elections under this Charter.
Subdivision 4. In the case of a vacancy where there remains less than 730 365 days in the
unexpired term, the Council shall by a majority vote appoint a successor to serve for the remainder of
said term. In the case of a tie vote of the Council, the Mayor shall make said appointment.
Subdivision 5. When a vacancy in an elected municipal office occurs within 120 days prior to
a regular municipal election date, the special election to fill the vacancy shall coincide with the
regular election. If the vacancy occurs within sixty days prior to the regular election date, the notice
of such vacancy shall be published as soon as is practicable. If within the 120 day period before a
regular municipal election, the vacancy occurs in the office of the Mayor or in the office of either or
both of the Councilmembers whose seats are to be decided in the election, said vacancy shall be
considered not to exist for purposes of the election. However, if such vacancy occurs in the office of
either of the other two Councilmembers, the seat shall be filled by the candidate for Councilmember
with the third highest vote total, or, in the case of two vacancies, the third and fourth highest vote
totals. Where two vacancies exist, the candidate with the third highest total shall fill the vacancy in
the office having the longest unexpired term. Candidates filing a vacancy shall take office at or
before the next regularly scheduled Council meeting following election certification.
Subdivision 6. If there are insufficient numbers of candidates in a regular or special election
to fill expiring or vacated municipal offices, the City Council shall fill said offices by appointment
until the next regular municipal election. In the case of a tie vote of the Council, the Mayor shall
make said appointment.
493512v1 SJR MU125-11
Kennedy 470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis MN 55402-1458
(612) 337-9300 telephone
(612) 337-9310 fax
http://www.kennedy-graven.com
Affirmative Action, Equal Opportunity Employer
Graven
C H A R T E R E D
SCOTT J. RIGGS
Attorney at Law
Direct Dial (612) 337-9260
Email: sriggs@kennedy-graven.com
MEMORANDUM
Date: January 19, 2017
To: Jim Ericson, City Administrator
From: Scott J. Riggs, City Attorney
Re: Mounds View Project Status Report
MU125-11: Administration. General discussions with staff regarding various City matters.
Consult with City staff regarding predatory offenders. Draft predatory offender
ordinance and forward to City staff. Review 1971 water and sewer agreement,
revise agreement and provide comments to City staff. Consult with City staff
regarding matter. Consult with City staff regarding annual lobbying report.
Review public works documents and provide comments and recommendations to
architect and City staff. Matters are presently pending.
MU210-54: City Code Updates. Awaiting final review by City staff. Work on revision to
City Code. Matter is presently pending.
MU210-106: Labor Matters. Consult with City staff regarding memorandum of understanding.
Revise memorandum of understanding and forward to City staff. Matter is
presently pending.
MU210-111: General Employment Matters. Consult with EEOC and City staff regarding
matter. Draft notice of closed meeting and forward to City staff regarding EEOC
matter. Draft settlement agreement and forward to parties for review and
approval regarding EEOC matter. Consult with City staff regarding personnel
matter. Matters are presently pending.
MU210-140: 8360 Long Lake Road. Consult with City regarding matter. Draft sewer
maintenance agreement and forward to City staff. Matter is presently pending.
&
Jim Ericson
January 19, 2017
Page 2
493512v1 SJR MU125-11
MU210-221: LMCIT/DVS General. Several notices of legal claims have been presented to the
City and have been tendered for defense by the League of Minnesota cities
Insurance Trust. Consult with City staff and City Council. Consult with LMCIT
attorneys. Consult with City staff regarding settlement matter. Matters are
presently pending.
MU210-244: G.O. Capital Improvement Bonds, Series 2017. Prepare reimbursement
resolution for a possible future capital improvement plan bond. Matter is
presently pending.
SJR:jms
Corrected Resolution as of 10:03, January 23, 2017
RESOLUTION 8698
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
APPOINT PARKS AND RECREATION AND FORESTRY COMMISSION CHAIRPERSON
WHEREAS, the City of Mounds View Municipal Code, Section 405.01 establishes a
Parks and Recreation and Forestry Commission for the purpose of advising the City Council on
the operation of public recreation, parks and playgrounds; and
WHEREAS, the City of Mounds View Municipal Code, Section 405.02, Subd. 1 states,
“Based upon the recommendation of the Parks and Recreation Commission, the City Council
shall appoint a chairperson”; and
WHEREAS, at their December 15, 2016 meeting, the Parks and Recreation and
Forestry Commission passed a motion recommending that Commissioner Gerald Arel be
appointed by the City Council as the chairperson for Parks and Recreation and Forestry
Commission for 2017.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mounds View,
Ramsey County, Minnesota that Gerald Arel be appointed as the chairperson of the Parks and
Recreation and Forestry Commission for 2017.
Adopted this 23rd day of January, 2017
____________________________________
Carol A. Mueller, Mayor
ATTEST:
____________________________________
James Ericson, City Administrator
(SEAL)