2021.04.06 Council Meeting Packet
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: April 2, 2021
City Council Meeting Schedule
Tuesday, April 6, 2021
Time Meeting Location
6:30 p.m.
First City Council work session to discuss:
1. Commission interviews:
• 6:35 p.m. – Forest Eidbo.
• 6:45 p.m. – Perry Bolin.
Council Chambers/Zoom
7:00 p.m. City Council meeting Council Chambers/Zoom
Immediately
following the City
Council meeting
Second City Council work session to discuss:
1. Gaulke Pond update.
2. 2021 Utility Reconstruction project update.
3. Status of local emergency declaration.
4. New business.
5. Announcements.
Council Chambers/Zoom
Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at (763) 531-1145 at
least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529.
In accordance with a statement issued by Mayor Jim Adams pursuant to Minnesota Statutes, section 13D.021, due
to the pandemic this meeting will be conducted as an electronic meeting. The public may monitor and participate in
the meeting by connecting to it through one of the methods identified below. A limited number of the public may
attend the meeting in-person in the Council Chambers, provided social distancing and face covering requirements
are followed. City council members and staff are not required to attend the meeting in-person, but some may
participate in-person. All votes will be taken by roll-call vote.
Topic: Crystal Council Work Session, Crystal Council Meeting, Crystal Council Work Session
Time: April 6, 2021 06:30 PM Central Time (US and Canada)
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4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: April 2, 2021
City Council
First Work Session Agenda
Tuesday, April 6, 2021
6:30 p.m.
Council Chambers/Zoom Meeting
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City
Charter, the first work session of the Crystal City Council was held on Tuesday, April 6, 2021 at
______ p.m. electronically via Zoom and in the Council Chambers at City Hall, 4141 Douglas
Drive, Crystal, Minnesota.
I. Attendance
Council members Staff
____ Parsons ____ Norris
____ Adams ____ Therres
____ Banks ____ Gilchrist
____ Budziszewski ____ Serres
____ Cummings
____ Kiser
____ LaRoche
II. Agenda
The purpose of the work session is to discuss the following agenda item:
1. Commission interviews:
• 6:35 p.m. – Forest Eidbo.
• 6:45 p.m. – Perry Bolin.
III. Adjournment
The work session adjourned at ______ p.m.
Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at (763)
531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529.
Page 1 of 2
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: April 2, 2021
City Council Meeting Agenda
Tuesday, April 6, 2021
7 p.m.
Council Chambers/Zoom Meeting
The city manager’s comments are bolded.
1. Call to Order, Roll Call and Pledge of Allegiance
2. Approval of Agenda
The Council will consider approval of the agenda.
3. Presentation
3.1 The Mayor will recognize Kiley Benson of Be Kind 2 People for assisting with meals in January
for the 133rd Airlift Wing of the Minnesota National Guard.
4. Consent Agenda
The Council will consider the following items, which are routine and non-controversial in nature,
in a single motion:
4.1 Approval of the minutes from the following meetings:
a. The City Council work session on March 11, 2021.
b. The City Council meeting on March 16, 2021.
c. The City Council work session on March 16, 2021.
4.2 Approval of the list of license applications submitted by the city clerk to the City Council, a list
that is on file in the office of the city clerk.
4.3 Approval of a resolution accepting a donation of $2,500 from VFW Post 494 for 2021 Crystal
Frolics.
4.4 Approval of a resolution authorizing the Communications System Subscriber Agreement with
Hennepin County.
5. Open Forum
(The City Council appreciates hearing from citizens about items of concern and desires to set
aside time during each meeting for Open Forum. To provide ample opportunity for all, speaking
time is limited to three minutes and topic discussion is limited to ten minutes. The Mayor may, as
presiding officer, extend the total time allowed for a topic. By rule, no action may be taken on
any item brought before the Council during Open Forum. The Council may place items discussed
during Open Forum onto subsequent council meeting agendas).
Page 2 of 2
6. Regular Agenda
6.1 The Council will consider approval of disbursements over $25,000 submitted by the finance
department to the city council, a list that is on file in the office of the finance department.
Recommend approval of disbursements over $25,000.
6.2 The Council will consider a resolution authorizing the purchase of four squad cars.
The 2022 Police Equipment fund anticipates the replacement of four squad cars. Because of
the long lead time for these purchases, recommend approval now of the resolution
authorizing ordering these four replacement vehicles.
6.3 The Council will consider a resolution approving a SAC Deferral Master Agreement with the
Metropolitan Council, establishing a local SAC payment deferral program, and adopting a SAC
deferral policy.
MCES requires cities to pay required SAC fees and cities in turn collect the fees from
property owners when building permits are issued. When reusing existing space, often
retail space, SAC fees can be an unexpected surprise, particularly if the new use is a
significant change in use. MCES offers a SAC deferral program for commercial uses for cities
and property owners in that, with the city’s approval, the unpaid SAC fees can be assessed
to a property just like an unpaid utility bill. MCES carries the cost of this program. In order
to help businesses looking to re-use vacant commercial space, recommend approval of the
resolution authorizing participation in this program.
6.4 The Council will consider approval of a Deferred SAC Payment Agreement with Douglas Drive
Partnership, LLP for 3549 Douglas Drive North (Bella’s Shoppe).
Assuming the Council approves participating in the SAC deferral program in the previous
agenda item, recommend approval of the SAC deferred loan agreement with Douglas Drive
Partnership, LLP for 3549 Douglas Drive North.
7. Announcements
a. The City Council will hold a work session on Thursday, April 8 at 6:30 p.m. in the Council
Chambers at City Hall and via Zoom.
b. The next City Council meeting is Tuesday, April 20, at 7 p.m. in the Council Chambers at City
Hall and via Zoom.
c. City Council meetings and work sessions are open to the public. Current and previous
meetings are available for viewing and listening at www.crystalmn.gov.
8. Adjournment
*Denotes no supporting information included in the packet.
Have a great weekend; stay healthy. See you at Tuesday’s meeting.
SINCERE APPRECIATION IS EXTENDED TO KILEY BENSON For exhibiting resourcefulness and generosity in supporting the 133rd Airlift Wing of the Minnesota National Guard by securing and providing meals to guard members and their guests before the unit left to provide security at the 59th Presidential Inauguration in January 2021. CITY OF CRYSTAL April 6, 2021 Jim Adams, Crystal Mayor ON BEHALF OF BE KIND 2 PEOPLE 3.1
3.1
Crystal City Council work session minutes March 11, 2021
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the
work session of the Crystal City Council was held at 6:30 p.m. on March 11, 2021 electronically via Zoom
and in the Council Chambers at City Hall, 4141 Douglas Dr. N., Crystal, Minnesota. Mayor Adams called
the meeting to order.
I.Attendance
The city clerk recorded the attendance for city council members and staff:
Council members present in the Council Chambers at City Hall: Kiser, LaRoche, Parsons, Adams,
Banks, Budziszewski, and Cummings.
City staff present in the Council Chambers at City Hall: City Manager A. Norris, Assistant City
Manager/HR Manager K. Therres, Police Chief S. Revering, Deputy Police Chief B. Hubbard, Public
Works Director M. Ray, West Metro Fire-Rescue District Fire Chief S. Larson, Community
Development Director J. Sutter, Recreation Director J. Elholm, and City Clerk C. Serres.
Also present were Dr. Ramon Pastrano, Cat Parkhill, and Cameron Bishop from Impact Lives via
Zoom.
II.Agenda
The Council and staff discussed the following agenda item:
1.Leading with Cultural Competence: “Building a Culture of Equity, Inclusion, and Belonging”.
III.Adjournment
The work session adjourned at 8:36 p.m.
________________________________
Jim Adams, Mayor
ATTEST:
Chrissy Serres, City Clerk
4.1(a)
Crystal City Council meeting minutes March 16, 2021
Page 1 of 5
1.Call to Order
Pursuant to due call and notice thereof, the regular meeting of the Crystal City Council was held on
March 16, 2021 at 7:00 p.m. electronically via Zoom and in the Council Chambers at City Hall, 4141
Douglas Dr. N. in Crystal, Minnesota. Mayor Adams called the meeting to order.
Roll Call
Mayor Adams asked the city clerk to call the roll for elected officials. Upon roll call, the following
attendance was recorded:
Council members present in the Council Chambers at City Hall: LaRoche, Parsons, Adams, Banks,
Budziszewski, Cummings, and Kiser.
City staff present in the Council Chambers at City Hall: City Manager A. Norris, Police Chief S.
Revering, Public Works Director M. Ray, Community Development Director J. Sutter, City Attorney A.
Biggerstaff and City Clerk C. Serres.
City staff present via Zoom: Recreation Director J. Elholm and West Metro Fire-Rescue District Chief
S. Larson.
Pledge of Allegiance
Mayor Adams led the Council and audience in the Pledge of Allegiance.
2.Approval of Agenda
The Council considered approval of the agenda.
Moved by Council Member Banks and seconded by Council Member LaRoche to approve the agenda.
Motion carried.
3.Consent Agenda
The Council considered the following items, which are routine and non-controversial in nature, in a
single motion:
3.1 Approval of the minutes from the following meeting:
a.The City Council meeting on March 2, 2021.
3.2 Approval of the list of license applications submitted by the city clerk to the City Council, a list
that is on file in the office of the city clerk.
3.3 Acceptance of the resignation of Meredith Torres-Walsh from the Parks and Recreation
Commission.
3.4 Approval of Resolution No. 2021-23, to apply for a Minnesota Department of Natural Resources
grant for renovating courts at Becker Park.
Moved by Council Member Parsons and seconded by Council Member Banks to approve the
consent agenda.
Motion carried.
4.1(b)
Crystal City Council meeting minutes March 16, 2021
Page 2 of 5
4. Open Forum
No public comment was given during open forum.
5. Public Hearing
5.1 Mayor Adams announced the purpose of the public hearing:
To receive comment, and Council consideration of a resolution approving a Tax Increment
Financing (TIF) plan modification for District #4.
Community Development Director John Sutter addressed the Council.
There being no one wishing to appear before the Council to give testimony, Mayor Adams
declared the public hearing closed.
Moved by Council Member Budziszewski and seconded by Council Member Banks to adopt the
following resolution:
RESOLUTION NO. 2021-24
RESOLUTION APPROVING A MODIFICATION TO THE REDEVELOPMENT PLAN
FOR REDEVELOPMENT PROJECT NO. 1 AND TO THE TAX INCREMENT FINANCING PLAN
FOR TAX INCREMENT FINANCING DISTRICT NO. 4
Voting aye: LaRoche, Parsons, Adams, Banks, Budziszewski, Cummings, and Kiser.
Motion carried, resolution declared adopted.
6. Regular Agenda
6.1 The Council considered approval of disbursements over $25,000 submitted by the finance
department to the city council, a list that is on file in the office of the finance department.
Moved by Council Member LaRoche and seconded by Council Member Kiser to approve the list
of disbursements over $25,000.
Voting aye: LaRoche, Parsons, Adams, Banks, Budziszewski, Cummings, and Kiser.
Motion carried.
6.2 The Council considered a resolution approving a conditional use permit application for Ambiance
Café event space, 351 Willow Bend.
Community Development Director John Sutter addressed the Council. Applicant Tiesha Bogard
also addressed the Council.
Moved by Council Member Budziszewski and seconded by Council Member Banks to adopt the
following resolution:
RESOLUTION NO. 2021-25
RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR AN EVENT CENTER
4.1(b)
Crystal City Council meeting minutes March 16, 2021
Page 3 of 5
Voting aye: LaRoche, Parsons, Adams, Banks, Budziszewski, Cummings, and Kiser.
Motion carried, resolution declared adopted.
6.3 The Council considered the following resolutions awarding contracts and agreements for the
2021 Street Resurfacing Project:
a. Resolution No. 2021-26, awarding the construction contract for the 2021 Street Resurfacing
project.
b. Resolution No. 2021-27, authorizing execution of a joint powers agreement with the city of
Robbinsdale regarding costs associated with the 2021 Street Resurfacing project.
c. Resolution No. 2021-28, authorizing execution of a joint powers agreement with the city of
Golden Valley regarding costs associated with the 2021 Street Resurfacing project.
d. Resolution No. 2021-29, authorizing execution of a joint powers agreement with the city of
New Hope regarding costs associated with the 2021 Street Resurfacing project.
Public Works Director Mark Ray addressed the Council.
Moved by Council Member LaRoche and seconded by Council Member Parsons to adopt the
following resolutions in one motion:
RESOLUTION NO. 2021 – 26
AWARD CONTRACT FOR
2021 STREET RESURFACING PROJECT
RESOLUTION NO. 2021 – 27
AUTHORIZING THE JOINT POWERS AGREEMENT WITH THE CITY OF ROBBINSDALE
FOR 2021 STREET RESURFACING PROJECT
RESOLUTION NO. 2021 – 28
AUTHORIZING THE JOINT POWERS AGREEMENT WITH THE CITY OF GOLDEN VALLEY
FOR 2021 STREET RESURFACING PROJECT
RESOLUTION NO. 2021 – 29
AUTHORIZING THE JOINT POWERS AGREEMENT WITH THE CITY OF NEW HOPE
FOR 2021 STREET RESURFACING PROJECT
Voting aye: LaRoche, Parsons, Adams, Banks, Budziszewski, Cummings, and Kiser.
Motion carried, resolutions declared adopted.
6.4 The Council considered a resolution approving plans and specifications and authorizing bids for
the new police station facility.
4.1(b)
Crystal City Council meeting minutes March 16, 2021
Page 4 of 5
City Manager Anne Norris addressed the Council. Melissa Stein from Wold Architects also
addressed the Council.
Moved by Council Member Cummings and seconded by Council Member Banks to adopt the
following resolution:
RESOLUTION NO. 2021 - 30
APPROVING REVISED PLANS AND SPECIFICATIONS FOR
THE POLICE BUILDING PROJECT AT 4141 DOUGLAS DRIVE
AND ORDERING ADVERTISEMENT FOR BIDS FOR THE PROJECT
Voting aye: LaRoche, Parsons, Adams, Banks, Budziszewski, Cummings, and Kiser.
Motion carried, resolution declared adopted.
6.5 The Council considered approving a 2021 Labor Agreement with International Union of Operating
Engineers, Local 49 (Public Works).
City Manager Anne Norris addressed the Council.
Moved by Council Member Banks and seconded by Council Member Budziszewski to approve the
2021 Labor Agreement with International Union of Operating Engineers, Local 49.
Voting aye: LaRoche, Parsons, Adams, Banks, Budziszewski, Cummings, and Kiser.
Motion carried.
6.6 The Council considered approving 2021 wage and benefit contributions for non-represented
employees.
City Manager Anne Norris addressed the Council.
Moved by Council Member LaRoche and seconded by Council Member Kiser to approve the 2021
wage and benefit contributions for non-represented employees.
Voting aye: LaRoche, Parsons, Adams, Banks, Budziszewski, Cummings, and Kiser.
Motion carried.
7. Announcements
The Council made announcements about upcoming events.
8. Adjournment
Moved by Council Member Budziszewski and seconded by Council Member LaRoche to adjourn the
meeting.
Motion carried.
The meeting adjourned at 7:38 p.m.
_____________________________________
Jim Adams, Mayor
4.1(b)
Crystal City Council meeting minutes March 16, 2021
Page 5 of 5
ATTEST:
__________________________________
Chrissy Serres, City Clerk
4.1(b)
Crystal City Council work session minutes March 16, 2021
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the
work session of the Crystal City Council was held at 6:31 p.m. on March 16, 2021 electronically via Zoom
and in the Council Chambers at City Hall, 4141 Douglas Dr. N., Crystal, Minnesota. Mayor Adams called
the meeting to order.
I.Attendance
The city clerk recorded the attendance for city council members and staff:
Council members present in the Council Chambers at City Hall: LaRoche, Parsons, Adams, Banks,
Budziszewski, Cummings, and Kiser.
City staff present in the Council Chambers at City Hall: City Manager A. Norris, Police Chief S.
Revering, Public Works Director M. Ray, Community Development Director J. Sutter, City Attorney A.
Biggerstaff and City Clerk C. Serres.
II.Agenda
The Council and staff discussed the following agenda items:
1.Twin Lake slalom course request update.
2.Blue Line Extension update.
3.City manager monthly check-in.
4.New business.
5.Announcements.
III.Adjournment
The work session adjourned at 6:56 p.m.
________________________________
Jim Adams, Mayor
ATTEST:
Chrissy Serres, City Clerk
4.1(c)
Page 1 of 2
City of Crystal Council Meeting
April 6, 2021
Applications for City License
Rental – New
4612 Hampshire Ave N – HPA US1 LLC
5424 Toledo Ave N – JNJ Brothers LLC (Conditional)
Rental – Renewal
4500 Adair Ave N – Reill Properties LLC
4526 Adair Ave N – Craig Dienger
5205 Angeline Ave N – Austin Lutz (Conditional)
5756 Brunswick Ave N – Michael Mohinani (Conditional)
5734 Colorado Ave N – Kate Werner
5123 Corvallis Ave N – Nancy and Jerad Soule
2900-2930 Douglas Dr N – Minnesota Senior Living (Conditional)
5116 Edgewood Ave N – Mitchel Investment Properties LLC (Conditional)
5141 Edgewood Ave N – Dennis O’Keefe (Conditional)
5945 Elmhurst Ave N – Fadel Sakkal (Conditional)
6330 Fairview Ave N – Ken Olson
3005 Florida Ave N – Judy and Eric Bolin (Conditional)
4032 Idaho Ave N – Gerhard Hettler and Carol Weston
4518 Jersey Ave N – IH3 Property Minnesota LP (Conditional)
3520 Lee Ave N – Juniper Land Trust LLC (Conditional)
6804 Lombardy La – Raymond and Cindy Scherbing Fam Rev Lv Trust
3421 Major Ave N – Royalty Estates LLC (Conditional)
3400 Noble Ave N – Jerry Ellefson
5816 Orchard Ave N – IH3 Property Minnesota LP (Conditional)
3131 Sumter Ave N – Central Crystal Village LLC (Conditional)
5023 Welcome Ave N – RENT CITY AT WELCOME LLC (Conditional)
5631 Welcome Ave N – Angela and Brian Hanf (Conditional)
5716 Wilshire Blvd – Mike Viaene and Jon Kotrba (Conditional)
4246 Xenia Ave N – RTO Investments
4242 Zane Ave N – Herman Capital Partners 3 (Conditional)
4639 Zane Ave N – Todd Long (Conditional)
6028 36th Ave N – Raymond Truelson
5916 38th Ave N – Jason Herzog (Conditional)
5917 38th Ave N – Jason Herzog (Conditional)
6424 45th Ave N – Kathryn Blaul
6817 47th Ave N – Kerby Skurat and Cristina Edelstein (Conditional)
5610 56th Ave N – Khue Dang (Conditional)
6001 56th Ave N – VCMM LLC (Conditional)
6017 56th Ave N – VCMM LLC (Conditional)
6604 57th Ave N – David Pascoe
Tobacco
Klever Liquor 5120 56th Ave N Crystal, MN 55429
4.2
Page 2 of 2
Tree Trimmer
A to Z Tree Care LLC 36928 153rd St Pierz, MN 56364
Everything Shrubbery LLC 4520 Lake Dr Ave N Robbinsdale, MN 55422
Sorenson Tree Service LLC 478 Hopkins Street, St Paul, MN 55130
4.2
CITY OF CRYSTAL
RESOLUTION NO. 2021 -
RESOLUTION ACCEPTING A DONATION FROM VFW POST 494
WHEREAS, Minnesota Statute §465.03 requires that all gifts and donations of real or personal
property be accepted only with the adoption of a resolution; and
WHEREAS, said donations must be accepted by a resolution adopted by the City Council.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Crystal to accept the
following donation:
Donor Purpose Amount
VFW Post 494 2021 Crystal Frolics $2,500
And BE IT FURTHER RESOLVED that the Crystal City Council sincerely thanks the above-named
for their generous donation.
Dated: April 6, 2021
By: __________________________
Jim Adams, Mayor
ATTEST:
__________________________
Christina Serres, City Clerk
4.3
Memorandum
DATE: April 6, 2021
TO: City Council
FROM: Mark Ray, PE, Director of Public Works
SUBJECT: Authorizing the Communications System Subscriber Agreement with Hennepin County
Background
Hennepin County Sheriff’s Office owns, operates, and maintains the regionwide public safety radio
communications system that police department and public works department use daily. The current
agreement has expired and thus a new agreement is needed.
Cost
The City pays a monthly fee to Hennepin County to support the 800mhz radio use. This cost is already
budgeted for in the operational budgets of both police and public works.
Attachment
•Communications System Subscriber Agreement
Recommended Action
Motion authorizing the Communications System Subscriber Agreement with Hennepin County
4.4
CONTRACT No. A2110620
Hennepin County Sheriff’s Office
Communications Division
1245 Shenandoah Ln
Plymouth, MN 55447
Regionwide Public Safety Radio
Communications System
Communications System
Subscriber Agreement
Between Hennepin County and Authorized Users Regarding:
Use of the Regionwide Public Safety Radio Communications System,
Lease, Maintenance and Repair of Subscriber Radios,
Administrative and Operational Support of the Subscriber Radio Fleet
4.4
2
THIS AGREEMENT made and entered into by and between the COUNTY OF HENNEPIN, a body
politic and corporate, under the laws of the STATE OF MINNESOTA, hereinafter referred to as the
"COUNTY," A-2303 Government Center, Minneapolis, Minnesota 55487, the City of Crystal, 4141
Douglas Drive North, Minnesota 55422, acting by and through its duly authorized officers, hereinafter
referred to as the "USER".
WITNESSETH:
WHEREAS, the COUNTY operates a Local Subsystem as part of the Regionwide Public Safety Radio
Communications System, hereinafter referred to as “System”; and
WHEREAS, the COUNTY has provided for the capability of Cities, Agencies, Districts and Other
Authorized Users within the County to have access to the System; and
WHEREAS, the COUNTY bears primary responsibility for the health, security and integrity of the System
and other communications systems;
WHEREAS, the USER has elected to participate as a subscriber with end user radios operating on the
System; and
NOW, THEREFORE, in consideration of the mutual undertakings and agreements hereinafter set forth,
the COUNTY and the USER agree as follows:
1. PURPOSE AND INTRODUCTION
The purpose of this Agreement is to define the rights and obligations of the COUNTY and the USER with
respect to the cooperative and coordinated purchase, lease, maintenance, technical and administrative
support and use of portable, mobile, desktop and other end user radios by the USER on the COUNTY’s
System.
The System is a multi-site general purpose wireless communications system designed to provide, among
other things, 95% area coverage reliability for portable radio operation above ground level in light to
medium buildings throughout most of the County. Other USER benefits and services include, access to
a statewide public safety radio communications system, multiple system redundancies with backup
power, a wide range of talk groups, electronic identification of all radios on all transmissions, 99.999%
microwave system reliability, encryption availability, system security, radio interoperability, 24 hour a day
system monitoring and repair response, access to a pool of special event radios and USER radio user
training.
2. DUTIES AND RESPONSIBILITIES OF USER
2.1 Conformance to Statewide Emergency Communications Board (SECB), Metropolitan Emergency
Services Board (MESB) and COUNTY Standards
USER agrees to be aware of and conform to all applicable standards, policies, procedures and protocols
established or amended by the SRB, MESB and COUNTY related to use of the System including but not
limited to System supported radios and equipment, radio user training requirements, radio operating
guidelines, audit, monitoring and compliance.
2.2 Conformance to Federal Laws and Regulations
USER agrees to be aware of and conform to all applicable Federal Rules, Regulation and Laws
pertaining to use of the System including but not limited to the Communications Act of 1934 as Amended
and Part 90 of the Federal Communications Commission Rules and Regulations.
4.4
3
2.3 Response to Improper Use
In the event COUNTY informs USER that statistical analysis of System usage or other information
indicates that USER personnel may have inappropriately used the System, or may have violated
standards, policies, procedures, rules, regulations or laws regarding proper operation of the System, or
may have violated the provisions of this Agreement, USER agrees to take immediate and appropriate
investigative and corrective action to stop the violation and eliminate any reoccurrence.
2.4 Radio and Equipment Lease Fees
USER agrees to pay to COUNTY all lease fees assessed to USER by COUNTY throughout the lease
term in accordance with a lease policy established by the Board of Hennepin County Commissioners for
end user radios or other related equipment furnished to USER by COUNTY under this Agreement. The
specific lease fee schedule established by COUNTY and the list of equipment leased by USER shall be
detailed in Appendix A attached hereto, and such Appendix A shall be made a part of this agreement.
2.5 Subscriber Fleet Support Fees
USER agrees to pay COUNTY all Subscriber Fleet Support Fees assessed to USER by COUNTY in
accordance with a cost recovery policy established by the Board of Hennepin County Commissioners for
costs including but not limited to programming, software updates, technical support, administrative
support, configuration support, access to the special event shared pool of radios, training support and
other costs attributable to USER’s participation under this Agreement. The Subscriber Fleet Support
Fees as stated in Appendix A.
2.6 Maintenance and Repair Fees
USER agrees to pay COUNTY all fixed fees for Tier 1 maintenance and repair services; time and
material charges for consumables and repairs not covered under Tier 1 service. The Tier 1 Maintenance
and Repair Fees as stated in Appendix A.
2.7 Pass Through Metropolitan Emergency Services Board User Fees
USER agrees to pay to COUNTY all user fees attributable to USER assessed to the COUNTY by the
MESB, or its successor entity if applicable. The MESB user fees are set forth in Appendix A.
2.8 Invoicing and Payment Terms
COUNTY will invoice USER monthly, or at other intervals as mutually agreed to in writing, for all fees
specified herein. Principal charges for leased equipment will commence when the COUNTY is invoiced
by the equipment supplier. All other fees specified in this Agreement will commence as follows: For
radios activated on or before the 15th of the month, USER will be charged for the entire month. For
radios activated after the 15th of the month, the fees will commence on the first day of the following
month. Payment of all fees herein shall be made directly to the COUNTY in accordance with state and
federal law governing the payment of claims and/or invoices.
2.9 Flow Down Metropolitan Emergency Services Board Contract Provisions
USER agrees to comply with all applicable flow down provisions set forth in Appendix A.
2.10 Provisional Use of USER Purchased and Owned Radios and Radio Software
USER may utilize radios purchased and owned by USER on the System provided that such USER’s
radios and equipment shall be pre-approved for support by COUNTY. COUNTY shall have no obligation
to support, maintain, or repair radios or equipment that are not pre-approved. Non-certified radios, or
radios operating with non-certified software versions will not be allowed to access or use the System. If
USER acquires radios or equipment that are not pre-approved, either party may immediately terminate
this Agreement.
2.11 De-certification and Disposition of Obsolete Radios
The SECB (Statewide Emergency Communications Board), MESB and/or COUNTY may de-certify
previously pre-approved radios, equipment, and/or radio operating software versions which become
obsolete for reasons including but not limited to: become unsafe to use, impair System performance, are
4.4
4
no longer supported by the radio Manufacturer, are no longer supported by the COUNTY, exhibit
substantial defects, exhibit performance deficiencies, impair implementation of System upgrades,
become unreliable, become economically unfeasible to maintain, etc. De-certified radios, equipment, or
radios operating with de-certified software versions will not be allowed to access or use the System.
USER agrees to dispose of obsolete radios, batteries and other equipment in accordance with applicable
laws and rules regarding disposal of hazardous materials.
2.12 Limitation of Radio Programming, Radio Code Plug Programming Files and System Key File
Regardless of ownership, all radios on the System shall be programmed only by the COUNTY, and the
COUNTY shall retain an archived electronic copy of all radio code plug programming files and encryption
keys files installed in all USER radios covered under this Agreement. The configuration of all radio code
plug programming files and radio templates shall be subject to approval by the COUNTY before the
radios will be activated on the System. All radio code plug programming files, system key files and
encryption key files are the sole property of the COUNTY, and contain information that is classified as
security information and non-public government data. Unless specifically authorized by the COUNTY in
writing, USER may not directly or indirectly, or permit any third party to: view, read, print, extract, copy,
archive, edit, create, clone, transfer, tamper with or otherwise compromise the security of any radio code
plug programming file, system key file or encryption key file for any radio on the System. In the event
USER learns that any party has improperly or fraudulently obtained radio code plug programming file
information, system key file or encryption key file, USER will immediately notify COUNTY of the security
breech.
2.13 Payment for Damaged Radios
USER agrees to promptly pay COUNTY for all costs incurred to repair radios damaged for any reason,
excluding normal wear and tear which is included in the COUNTY’s maintenance program, and also
excluding damage which occurs while the radios are in the possession of COUNTY.
2.14 Risk of Loss for Lost, Stolen or Destroyed Radios
USER assumes full risk of loss for COUNTY provided radios assigned to USER including special event
and repair loaner radios temporarily assigned to USER which are lost, stolen, physically un-repairable or
destroyed for any reason excluding damage which occurs while the radios are in the possession of
COUNTY. USER will be invoiced, and agrees to pay, the remaining amount of the non-depreciated lease
balance, for any lost, stolen or destroyed radios. Assessment of subscriber fleet support fees and Tier 1
fixed maintenance fees will be terminated upon such payment.
2.15 Notification to COUNTY of Lost or Stolen Radios
USER agrees to immediately notify COUNTY of any missing, lost or stolen radios, so the radio can be
deactivated on the system.
2.16 Radios Not Economical to Repair
A USER radio which is covered under the annual Tier 1 fixed fee maintenance and repair services
program listed in Appendix A which has malfunctioned, broken or failed, excluding a radio that is
damaged, lost, stolen, destroyed or physically un-repairable as described in sections 2.13 and 2.14
above, and which the COUNTY determines cannot be economically repaired, by mutual agreement shall
(1) be considered an obsolete radio, deactivated and terminated from the maintenance program with no
additional fees payable by USER except the outstanding balance of fees due for services rendered
before the radio was deemed not economical to repair (2) Considered an obsolete radio, deactivated and
terminated from the lease program with no additional frees payable by USER. In the event the
replacement option is chosen, the used replacement radio may, at COUNTY’s option, be reconditioned
or rebuilt from salvaged parts and the COUNTY shall retain or assume ownership of the original failed
radio and such radio may be salvaged for spare parts, rebuilt or otherwise disposed of by COUNTY.
Further, if the failed radio is a COUNTY owned radio leased to USER, and the deactivate and terminate
lease option is chosen, the COUNTY shall also retain ownership and disposition rights of the failed radio.
2.17 Assignment of Leased Equipment
USER may terminate in whole or part the lease of radios or other equipment under this Agreement
4.4
5
provided USER assigns the leased equipment in writing to another authorized user who has a subscriber
agreement in effect with the County and further provided that the Assignee agrees in writing to make all
applicable payments to COUNTY including the remaining lease payments.
2.18 Prepayment of Leased Equipment
USER may pay off the remaining amount of the non-depreciated lease balance, at any time during the
lease term without any additional prepayment penalty. Title to the leased equipment shall transfer to the
USER upon such payoff subject to the provisions of Section 3.2.
3. DUTIES AND RESPONSIBILITIES OF COUNTY
3.1 Furnishing of End User Radios
COUNTY will periodically solicit orders for new, additional and replacement radios from USER. This will
normally occur on an annual basis, however USER may request radios at any time. Subject to budget
availability and approval by the Board of Hennepin County Commissioners, on USER’s behalf COUNTY
will purchase radios, receive, inventory, inspect, test, program and install radios as requested by USER.
COUNTY will assist USER in selecting and ordering radios that are purchased directly by USER for use
on the System.
3.2 Financing of End User Radios and Transfer of Title
Subject to budget availability and approval by the Board of Hennepin County Commissioners, COUNTY
will finance the purchase of radios for USER’s Public Safety operations (police, fire, EMS or Emergency
Management) as requested by USER. The equipment lease period shall be for the expected useful life of
the equipment, as determined by COUNTY and listed in Appendix A. The combined equipment will be
depreciated over the lease period. Upon completion of payment of all principal to COUNTY, and
execution by USER of any applicable Software License Agreements or Assignment of Rights
Agreements regarding use of embedded software, COUNTY shall transfer title to the leased equipment
to USER.
3.3 Radio Maintenance and Repair Services
In accordance with the provisions herein, COUNTY will provide one tier of maintenance and repair
services for USER radios. Tier 1 service will be provided at a fixed annual fee determined by the
COUNTY and may be based on the model and age of the radio. Tier 1 service includes access to the
shared pool of repair loaner radios. The fixed annual fee for Tier 1 service includes all parts, labor and
other costs to provide maintenance and repair for internally malfunctioning radios and normal wear and
tear. Normal wear and tear is anticipated degradation which normally occurs to the equipment in the
regular course of work for the job position, assuming the user takes reasonable care and precaution.
Tier 1 service excludes consumables such as batteries and antennas, and excludes radio accessories.
Repairs beyond internal malfunctions and normal wear and tear including damage caused by negligence
or accidental damage such as fire, water immersion, crushing, dropping from a moving vehicle, etc., and
consumables will be assessed on a time and materials basis in addition to the fixed annual Tier 1
maintenance fee. Unless specifically excluded by COUNTY, all radios assigned for public safety
operations on the System under this Agreement, regardless of ownership, will be provided with Tier 1
maintenance service by COUNTY and will be allocated the annual fixed costs.
3.4 Repair Loaner and Special Event Radios
COUNTY will maintain a fleet of radios which will be made available to USER, generally on a first come
first serve basis, for temporary assignment for special events, response to emergencies, or other similar
events. USER may receive a temporary loaner radio to replace a radio taken out of service for
maintenance or repair if the failed radio is covered under the Tier 1 annual fixed fee maintenance and
repair services prog ram listed in Appendix A. If there are more requests for loaner radios than can be
accommodated, the COUNTY will prioritize allocations and may require that USER return repair loaner
and special event radios early.
3.5 Allocation of System Resources
COUNTY will allocate to USER, by mutual agreement, sufficient System resources including but not
4.4
6
limited to; Talk Groups, Radio Unit IDs, Alias IDs, etc. in order to provide USER with an equivalent grade
of service afforded to other comparable System users.
3.5 Monitoring of USER Talk Groups
COUNTY will periodically monitor talk groups allocated to USER for USER’s internal use for system
management purposes including but not limited to maintenance, troubleshooting, system performance
assessments, unusual traffic patterns (sudden jump in usage), policy and procedure compliance checks,
etc. COUNTY monitoring of USER’s talk groups may occur at any time, for any duration, may be without
notice and is subject to recording.
3.7 Radio Operator Training
COUNTY will provide USER with access to end user radio training instructional materials provided to
COUNTY from the SRB, MESB or other sources. For the deployment of immediate and near term radios
as defined in the COUNTY’s Radio Purchasing and Deployment Plan adopted by Board Resolution No.
01-622R2, attached as Appendix B, COUNTY will assist USER in training USER’s personnel by
providing a COUNTY radio trainer (or trainers) to work in conjunction with a USER provided trainer (or
trainers) to deliver training to USER’s radio operators. Once the near term deployment is completed,
USER will have primary responsibility for training new employees and for providing refresher training.
3.8 Database Administration
COUNTY will manage and administer the System database records containing the information related to
inventory, configuration, programming history, software version control, radio IDs, service levels,
statistical usage analysis, etc. for USER’s subscriber radios used on the System.
3.9 Radio Station Licenses
COUNTY shall hold and administer all FCC licenses on behalf of all users of the System. USER shall
operate as authorized mobile, portable and control station units under the COUNTY’s FCC radio station
licenses.
4. TERM AND CANCELLATION
4.1 Term of Agreement
This Agreement shall be for an initial term of five (5) years beginning on the date executed by the
COUNTY through December 31, 2025. After the initial term and any subsequent extensions thereto, this
Agreement will automatically be extended for an additional one (1) year term, for up to a maximum of
three (3) of one (1) year terms beyond the initial term of the five (5) years (“Renewal Term”), unless
either party gives written notice of intent not to extend to the other party, at least one hundred twenty
(120) days prior to the expiration of the then current term.
4.2 Cancellation of Agreement
This Agreement may be canceled with or without cause by either party upon one hundred eighty (180)
days’ written notice, provided that any such cancellation by COUNTY shall require action by the Board of
Hennepin County Commissioners.
4.3 Actions Upon Termination
Upon expiration or cancellation of this Agreement as provided for herein, USER shall cease all use of the
System including using the system with radios owned by USER.
5. MERGER AND MODIFICATION
5.1 Entire Agreement
It is understood and agreed that the entire Agreement between the parties is contained herein and that
this Agreement supersedes all oral agreements and negotiations between the parties relating to the
subject matter hereof. All items referred to in this Agreement are incorporated or attached and are
deemed to be part of this Agreement.
4.4
7
5.2 Amendments to Agreement
Any alterations, variations, modifications, or waivers of provisions of this Agreement, except for revisions
to Appendix A as provided for below, shall only be valid when they have been reduced to writing as an
amendment to this Agreement signed by the parties hereto.
6. DEFAULT
6.1 If either party fails to perform any material term of this Agreement, this failure shall be addressed in
accordance with the Contract Disputes Act.
6.2 The failure to insist upon strict performance of any provision or to exercise any right under this
Agreement shall not be deemed a relinquishment or waiver of the same, unless consented to in writing.
Such consent shall not constitute a general waiver or relinquishment throughout the entire term of the
Agreement.
6.3 If either party terminates agreement due to default, USER shall return all equipment for
deprogramming. Following deprogramming activities COUNTY shall return all equipment to USER. User
shall pay COUNTY the remainder of the balance of the original cost of the leased equipment which has
not been recovered under lease payments. USER shall cease all use of COUNTY’s System.
7. MISCELLANEOUS PROVISIONS
7.1 Independent Parties
It is mutually understood that this Agreement does not create an employment relationship between the
parties, nor does it create a partnership or joint venture, nor does it constitute a cooperative agreement
or joint powers agreement.
7.2 Liability
Each party agrees that it will be responsible for its own acts and the results thereof, to the extent
authorized by law, and shall not be responsible for the acts of the other party and the results thereof.
7.3 Data Privacy
To the extent applicable under federal and state law, USER, its officers, agents, owners, partners,
employees, volunteers or subcontractors agree to abide by the provisions of the Minnesota Government
Data Practices Act, Minnesota Statutes, Chapter 13, and all other applicable state and federal laws,
rules, regulations and orders relating to data privacy or confidentiality, and as any of the same may be
amended.
7.4 Records – Availability/ Access
To the extent applicable under federal and state law, subject to the requirements of Minnesota Statutes
Section 16C.05, Subd. 5 (as may be amended), the USER agrees that the COUNTY, the State Auditor,
the Legislative Auditor or any of their duly authorized representatives at any time during normal business
hours, and as often as they may reasonably deem necessary, shall have access to and the right to
examine, audit, excerpt, and transcribe any books, documents, papers, records, etc., which are pertinent
to the accounting practices and procedures of the USER and involve transactions relating to this
Agreement. Such materials shall be maintained and such access and rights shall be in force and effect
during the period of the contract and for six (6) years after its termination or cancellation.
7.5 Contract Administration
In order to coordinate the services of the USER with the activities of the COUNTY so as to accomplish
the purposes of this contract, the party(s) named on the Delegation of Authority for Contracting Officers
Technical Responsibilities as provided by User, shall manage this contract on behalf of the USER and
serve as liaison between the COUNTY and the USER.
7.6 Notices
Any notice or demand which must be given or made by a party hereto under the terms of this Agreement
4.4
8
or any statute or ordinance shall be in writing, and shall be sent registered or certified mail. Notices to
the COUNTY shall be sent to the County Administrator with a copy to the Office of the County Sheriff at
the address given below. Notice to the USER shall be sent to the address stated below.
To COUNTY: Hennepin County Administrator
A-2303 Government Center
Minneapolis, MN 55487
Copy to: Radio Systems Manager
Hennepin County Sheriff’s Office
Communications Division
1245 Shenandoah Ln
Plymouth, MN 55447
USER: City of Crystal
4141 Douglas Drive North
Crystal, MN 55422
ATTN: Public Works Director Mark Ray
This Portion of Page Intentionally Left Blank
4.4
9
COUNTY ADMINISTRATOR APPROVAL
USER, having signed this contract, and the County having duly approved this contract on the
____ day of _____________, ______, and pursuant to such approval, the proper County officials having
signed this contract, the parties hereto agree to be bound by the provisions herein set forth.
Reviewed by County Attorney’s Office
By:
Michael Bernard
Date:
Hennepin County Sheriff’s Office
By:
Tracey A. Martin
Chief Deputy
Date:
Document Assembled by:
By:
Kristine Urbowicz
Date:
COUNTY OF HENNEPIN
STATE OF MINNESOTA
By:
David Hough
County Administrator
Date:
By:
Sheri Selton
County Administration Clerk
Date:
USER
By:
Anne Norris
City Manager
Date:
4.4
Hennepin County Sheriff’s Office
Communications Division
10
Appendix A
Communications System Subscriber Agreement
Appendix A: 2021 Annual Subscriber Fees
Device Type & Support Level HC Subscriber
Fleet Support Fee1
MESB
Fee2
State
PTID Fee3
Tier 1 – All Radios $286.32 $8.28
Admin Only – All Radios $18.60 $8.28
Mobile Data Computer $537.24 $0.00 $360.00
Tri-Tech Software License fee (Field Ops) $180.00
Tri-Tech Software License fee (Desktop) $35.00 $360.00
1 Note: Currently billed as “Radio Fleet Fee” or “MDC Support Fee.” Tier 1
Subscriber Fleet Support Fee includes programming, maintenance, repair,
software updates, technical support, database and configuration support,
access to the special event shared pool of radios, repair loaners, training
support, and other costs attributable to supporting the radio fleet. Fleet
Support Fee for Consolettes (base radios) only covers maintenance and
repair on the radio unit, it does not include parts for or repair of desktop
remotes, wiring for remotes, antennas or antenna feedline.
Tier 2 is no longer available. Admin only is available only when specifically
authorized through cooperative agreement.
The annual fixed price MDC fleet support fee includes: (1) All Core Software
Support services described in the MDC Fleet Support Amendment to the
Subscriber Agreement; (2) Diagnosis of hardware failures, including GPS
receivers and commercial air cards. (3) Switching to repair loaner hardware;
(4) Processing of hardware covered under manufacturer’s warranty or
extended service plan; (5) Software setup for new and replacement MDCs
(excluding installation in vehicle).
2 MESB Fee is a pass-through fee assessed by the Metropolitan Emergency
Services Board for its radio related administrative expenses.
3 State PTID Fee is a pass-through fee assessed by the State of
Minnesota for access to State Criminal Justice Database. This fee is
ONLY charged for MDCs and desktops requiring this access.
4.4
Hennepin County Sheriff’s Office
Communications Division
11
Communications System Subscriber Agreement Appendix A:
2021 Time and Materials Charges
Hourly Rates
Communications Technician $50.00
Software Technician $105.00
Lead Communications Technician $60.00
Communications Engineer $69.00
Parts, Accessories, Batteries and Other Equipment
Cost Plus 10% Markup for Administrative Costs
External Contractor Repair Services
Cost Plus 10% Markup for Administrative Costs
4.4
RESOLUTION NO. 2021- _____
AUTHORIZING THE COMMUNICATIONS SYSTEM SUBSCRIBER AGREEMENT
WITH HENNEPIN COUNTY
WHEREAS, Hennepin County operates the regionwide public safety radio communications
system; and
WHEREAS, both the Crystal Police Department and Public Works Department depend on this
communications system; and
WHEREAS, the existing agreement has expired;
NOW, THEREFORE, BE IT RESOLVED that the Crystal City Council hereby authorizes the
Communications System Subscriber Agreement with Hennepin County.
BE IT FURTHER RESOLVED that the Mayor and/or City Manager are authorized to sign this
agreement.
Adopted by the Crystal City Council this 6th day of April 2021.
Jim Adams, Mayor
ATTEST:
Christina Serres, City Clerk
4.4
DATE:March 31, 2021
TO:Anne Norris, City Manager
City of Crystal City Council
FROM:Jean McGann, Contracted Finance Director
RE:Expenditures over $25,000
Payee Amount
LOGIS Monthly application support and hosting $34,642.45
Short Elliot Hendrickson, Inc.2021 Utility Reconsutruction project $36,110.45
West Metro Fire Rescue District March contribution to West Metro Fire $110,140.56
Golden Valley JWC February water costs $130,314.02
LMCIT 2nd quarter of 2021 workers comp insurance $127,874.00
Center for Energy and Environment Home improvement loan program costs $42,774.23
MN PERA Employee & city required contributions for 03/19/21 pay date $61,192.29
Metropolitan Council Environ Svs Wastewater service for April $143,035.56
Waste Management (HRG)February HRG recycling costs $45,744.52
$731,828.08
Description
6.1
CCCRRRYYYSSSTTTAAALLL PPPOOOLLLIIICCCEEE DDDEEEPPPAAARRRTTTMMMEEENNNTTT
“Service with Compassion, Integrity, & Professionalism”
TO: Mayor and Council Members
FROM: Stephanie K. Revering, Chief of Police
CC: Anne Norris, City Manager
DATE: April 2, 2021
SUBJECT: POLICE EQUIPMENT REVOLVING FUND
___________________________________________________________________________
MMEEMMOORRAANNDDUUMM
BACKGROUND
During the 2021/2022 budget discussions, you were informed of the need to replace 4 police
vehicles (annual replacement schedule) for the 2022 year.
We have been informed that we need to order our 2022 vehicles prior to June 2021, in order to
receive them before production stops.
As you know, we have the patrol fleet on a 4 year, and at least an 80,000-mile rotation
schedule due to the wear and tear of police vehicles and the ancillary vehicles are on an 8-10-
year rotation cycle. Most police vehicles are sent to auction if we don’t repurpose them for
other needs.
CONSIDERATION
We are asking for your approval of the resolutions which have been placed on the regular
agenda of the April 6, 2021 council meeting. The monies for replacement of the vehicles, will
be taken out of the Police Equipment Revolving Fund (PERF) for budget year 2022.
As always, please let me know if you have any questions. Thanks.
6.2
RESOLUTION NO. 2021-
RESOLUTION APPROVING POLICE EQUIPMENT REVOLVING FUND
EXPENDITURE FOR PURCHASE OF FOUR POLICE VEHICLES
WHEREAS, the City Manager's office has received and recommends approval of
said appropriations, and
WHEREAS, the appropriation is included in the 2021 Police Equipment Fund
Budget, and
WHEREAS, the City Council hereby acknowledges:
1. These police patrol/administrative vehicles will be equipped for use by
police officers and community service officers.
2. The most suitable source of funding is the Police Equipment Revolving
Fund.
WHEREAS, the City has a State of Minnesota Purchasing Contract bid quote for
police vehicles.
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF
THE CITY OF CRYSTAL hereby accepts the state bid quote and appropriates monies
from the Police Equipment Revolving Fund for the purchase of four police vehicles.
Cost to include purchase of the vehicles as well as necessary replacement and installation
of accessory equipment not to exceed $52,000 for the vehicles. For a total dollar amount
of $208,000 for all four vehicles.
Adopted by the Crystal City Council this 6th day of April 2021.
____________________________________
Jim Adams, Mayor
ATTEST:
_______________________________
Chrissy Serres, City Clerk
6.2
Page 1 of 2
__________________________________________________________________________
FROM: John Sutter, Community Development Director
DATE: April 1, 2021
TO: Anne Norris, City Manager (for April 6 Council meeting)
SUBJECT: Consider a resolution approving a SAC Deferral Master Agreement with the
Metropolitan Council, establishing a local SAC payment deferral program,
and adopting a SAC deferral policy
BACKGROUND
Metropolitan Council Environmental Services (MCES) requires cities to pay Sewer
Availability Charge (SAC) fees as determined by MCES when new construction or a
change in use occurs.
Cities collect SAC fees when a building permit is issued and remit the fee to MCES.
In a fully developed city like Crystal, these fees can be unexpectedly high for new or
expanding businesses, for example, when a retail space becomes a restaurant.
MCES has a SAC deferral program for small businesses whereby the city can defer
repayment to MCES and in turn defer payment by the business.
STAFF COMMENTS
Staff recommends that the city participate in the MCES SAC Deferral Program for the following
reasons:
1. The deferral program is broadly similar in rationale and concept to our fire sprinkler
financing program, except as follows:
It is financed with MCES funds instead of city/EDA funds
There would be an interest charge (currently 2.14%/year) but it would be net-zero for
the city because we would charge the property owner the same interest rate
2. There is no risk to the city because unpaid SAC can be assessed just like an unpaid utility
bill, and our agreement with the property owner would include a waiver of their right to
appeal the assessment.
3. If the business does not also own the property, it is up to the property owner whether to
participate in the program depending on their confidence in their business tenant.
4. All of our surrounding cities except New Hope participate in the program.
COUNCIL STAFF REPORT
SAC Deferral Program
6.3
Page 2 of 2
5. This is an opportunity to improve business opportunities in Crystal at no financial risk to the
city.
6. There will be some staff time involved to implement and operate the program, but it is
minimal and will not affect other city operations.
ATTACHMENTS
A. Resolution for Council consideration
B. Proposed Crystal SAC Deferral Policy
C. Proposed MCES-Crystal Master Agreement
COUNCIL ACTION REQUESTED
Adoption of the resolution approving a SAC Deferral Master Agreement with the Metropolitan
Council, establishing a local SAC payment deferral program, and adopting a SAC deferral
policy.
6.3
711171.v1
CITY OF CRYSTAL
MINNESOTA
RESOLUTION NO. 2021-__
RESOLUTION APPROVING A SAC DEFERRAL MASTER AGREEMENT WITH
THE METROPOLITAN COUNCIL, ESTABLISHING A LOCAL SAC PAYMENT
DEFERRAL PROGRAM, AND ADOPTING A SAC DEFERRAL POLICY
WHEREAS, the City of Crystal (“City”) may elect to participate in a program established
by the Metropolitan Council (“Met Council”) pursuant to Minnesota Statutes, section 473.517,
subdivision 6 to defer the payment of the sewer availability charge (“SAC”) imposed on qualifying
small businesses in the City (“Met Council Deferral Program”); and
WHEREAS, cities electing to participate in the Met Council Deferral Program must enter
into a master agreement with the Met Council, establish a local deferral program, and enter into a
SAC deferral agreement with participating businesses; and
WHEREAS, the City Council determines it is in the best interests of the City to participate
in the Met Council Deferral Program to help reduce the initial costs of starting or expanding a
small business in the City; and
WHEREAS, the City Council also determines to adopt the attached SAC Deferral Policy
to inform business owners of the City’s program and its structure; and
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal,
Minnesota as follows:
1.The City is authorized to enter into a master agreement with the Met Council to participate in
the Met Council Deferral Program.
2.A local SAC Deferral Program is hereby established for the City.
3.The attached SAC Deferral Policy is hereby adopted for the City.
4.City staff is authorized to prepare and submit to the City Council Deferred SAC Payment
Agreements with those small businesses electing to participate in the City’s program.
Adopted by the Crystal City Council this __ day of ___________, 2021.
____________________________________
Jim Adams, Mayor
ATTEST:
______________________________
Chrissy Serres, City Clerk
ATTACHMENT A 6.3
6.3
1
CITY OF CRYSTAL
SAC DEFERRAL POLICY
Section 1. Background. The Metropolitan Council (“Met Council”) has established a program
pursuant to Minnesota Statutes, section 473.517, subdivision 6 to allow the deferred payment of
the sewer availability charge (“SAC”) collected from qualifying small businesses. The City
elected to participate in the Met Council’s deferral program and to enter into a Master SAC
Deferral Agreement (“Master Agreement”). The City also established the Crystal SAC
Deferral Program (“Deferral Program”) to allow a qualifying small business to elect to defer
payment of its SAC charge.
Section 2. Purpose. The purpose of this SAC Deferral Policy (“Policy”) is to regulate,
coordinate, and facilitate the deferral of SAC payments for qualifying businesses to lessen the
initial burdens associated with starting or expanding a business in the City. Those businesses
electing to participate in the Deferral Program must comply with this Policy and enter into a
Deferred SAC Payment Agreement (“Deferral Agreement”) with the City. This Policy is
intended to be interpreted in accordance with the Master Agreement and the most current version
of the Met Council’s SAC Procedure Manual.
Section 3. Eligibility. A business must satisfy all the following criteria in order to qualify to
participate in the Deferral Program:
(a)The business is qualified to participate under the limitations in the Master Agreement
and the most current version of the Met Council’s SAC Procedure Manual;
(b)The Met Council SAC determination for the business must be at least three, but not
more than 25 units;
(c)The business is not a motel, hotel, camp, nursing home, senior housing, a prison, or
publicly assisted housing;
(d)There are no delinquent property taxes or unpaid City charges on the property on
which the business is to be located;
(e)The business is in good standing with the State of Minnesota and is not in violation of
the Crystal City Code; and
(f)The business is located within the City of Crystal.
Section 4. Participation. To participate in the Deferral Program, a business must submit a
complete Crystal SAC Deferral Program Application form and, if the City determines the
business is eligible, enter into a Deferral Agreement with the City agreeing to pay the SAC
charges. If the business does not own the property on which it is located, the fee owner of the
property must sign the Deferral Agreement because if the business defaults on its payments the
City may assess the unpaid amounts and related costs against the property.
ATTACHMENT B 6.3
2
Section 5. Deferral Structure. The Deferral Program is structured as provided in this section.
(a) No less than twenty percent (20%) of the total amount of SAC due must be paid to
the City as an initial payment (“Initial Payment”) upon issuance of a building permit
for the business.
(b) The remainder of the total amount of SAC due may be deferred and shall be no more
than eighty percent (80%) of said total amount (“Deferred Amount”).
(c) A business is allowed to defer a minimum of three (3) SAC units, and a maximum of
twenty-five (25) SAC units, under the Deferral Program.
(d) The deferment term is five (5) years.
(e) The business is required to begin paying monthly payments toward the Deferred
Amount, plus interest, on the first day of the month following the month in which it
paid the Initial Payment. The monthly payment is due on the 1st of each calendar
month.
(f) The interest rate on the Deferred Amount is set at the time of entering into the
Deferral Program and reflects the interest rate charged by the Met Council. The City
may impose a higher rate than imposed by the Met Council to reimburse the City for
its costs associated with administering the Deferral Program.
(g) Each deferment liability will be effective, and interest will begin to accrue, the first
day of the month following the month in which the initial payment was made.
Interest is amortized over the term of the deferment period using whole months.
(h) Payments on Deferred Amount are due monthly on the 1st of each month.
(i) Any payment that is more than fifteen (15) days late shall be charged a penalty of 2%
of the unpaid balance of the Deferred Amount.
(j) In the event of a default of payment that is at least sixty (60) days past due, the City
shall assess the unpaid balance upon the fee owner’s property taxes the following
taxable year subject to the same interest rate applied to the Deferred Amount. At the
discretion of the City, the City may terminate any amount due related to assessments
for the Deferral Program, resulting in a SAC unit credit for only the amount actually
paid by the small business.
(k) A Deferred SAC Payment Agreement (“Deferral Agreement”) must be executed
between the eligible business, the fee property owner, and the City stating all
conditions and requirements of the parties for the Deferral Program. The Deferral
Agreement must be recorded.
6.3
3
Section 6. Administration. The City of Crystal is responsible for administering the Deferral
Program on behalf of the Met Council. Under the Master Agreement, the City is responsible for
all loan deferral collections from the eligible small business participating in the Deferral
Program. The City is responsible for making payments of the required SAC deferment amount,
plus interest, to the Metro Council on a semiannual basis. If the participating business defaults
on its obligation to make payments on the deferred amount to the City, the City may assess the
unpaid amounts and related costs against the property. If the business closes, the City may elect
to suspend payment to the Met Council or take other action as provided in the Master
Agreement. The City Council may amend this Policy by resolution at any time. Any such
amendments shall not change the terms of an existing Deferral Agreement. This Policy shall be
interpreted liberally as needed to be consistent with the requirements of the Master Agreement,
as needed to support the City’s compliance with its terms and conditions, and to allow the City to
recover all SAC charges it is required to pay the Met Council and the other City costs.
6.3
6.3
Page 1 of 7 Pages
COMMUNITY: City of Crystal NO. 21M131-1
COMMUNITY ADDRESS: 4141 Douglas Dr N Crystal MN 55422
CONTACT PERSON: Jean McGann, AEM, jean.mcgann@AEMFS.com
COMMUNITY-WIDE SAC DEFERRED AMOUNT: 80%
COMMUNITY-WIDE SAC DEFERMENT PERIOD/TERM: 5 years
PAYMENT MONTH(S): June and December
MASTER SAC DEFERRAL AGREEMENT
THIS MASTER SAC DEFERRAL AGREEMENT (“Agreement”) is entered into by and between
the Metropolitan Council, a public corporation and political subdivision of the State of Minnesota,
with business offices at 390 Robert Street North, Saint Paul, Minnesota 55101 (“Council”), and the
local government unit identified above as the “Community.”
Recitals
1.The Council owns and operates the metropolitan disposal system. Under Minnesota Statutes
section 473.517, subdivision 3, the costs of acquisition, betterment and debt service associated with
the “reserve capacity” of the system must be allocated among and paid by the respective local
government units in the metropolitan area through a sewer availability charge (“SAC”) for each new
connection or increase in capacity demand to the metropolitan disposal system within each local
government unit.
2.Individual property or business owners whose properties are either newly connected or increase
capacity demand to the metropolitan disposal system do not pay SAC to the Council. However, local
government units that pay SAC to the Council for new connections or increased capacity demands
typically pass on those costs to property and business owners by assessing property and business
owners a “Local SAC” which sometimes includes local add-on charges.
3.Minnesota Statutes section 473.517, subdivision 6 authorizes the Council to provide for the
deferment of payment of all or part of the allocated costs which are allocated by the Council to a local
government unit in any year pursuant to section 473.517, subdivision 3. The deferments are repayable
at such time or times as the Council shall specify, with interest.
4.At its November 28, 2012 meeting, the Council adopted changes to its SAC program including
a small business SAC deferral program. The changes became effective January 1, 2013. At its
January 22, 2014 meeting, the Council adopted changes to the SAC deferral program that became
effective immediately upon adoption.
5.The Council wants to encourage and help communities promote business development by
deferring community SAC payment obligations pursuant to Minnesota Statutes section 473.517,
subdivision 6, so participating communities may pass through to businesses the benefits of deferred
SAC payments by the communities. The Council’s Sewer Availability Charge Procedure Manual
ATTACHMENT C 6.3
Page 2 of 7 Pages
(January 2014) states that communities that want to participate in a SAC deferral program must
execute a standard master SAC deferral agreement with the Council.
6. To obtain a deferment of a SAC payment obligation and provide assistance to businesses,
communities will submit to the Council a signed master SAC deferral agreement. For the term of the
master agreement, communities will have the option to note on their monthly SAC reporting, on forms
as provided by the Council, the eligible SAC liabilities for which the communities are requesting a
SAC payment deferment from the Council. For each such subject SAC liability the deferment will
be effective as of the first day of the subsequent month (e.g., for an April building permit that is
reported for SAC in May, the deferment will be effective as of June 1).
7. In order to define the rights and obligations of the Community and the Council and the relevant
SAC deferral arrangements, the Community and the Council agree as follows:
Article 1 - Definitions
1.1 Definition of Terms. Unless otherwise provided or indicated by the context, the terms defined
in this article have the meanings given them in this article. Capitalized terms or phrases used in this
Agreement have the meanings given them in the most recent version of the Council’s Sewer
Availability Charge Procedure Manual (the “SAC Procedure Manual”).
(a) Community. “Community” means a “Community” or “Customer Community” as those terms
are defined in the SAC Procedure Manual.
(b) Determination. “Determination” has the meaning ascribed to that term in the SAC Procedure
Manual.
(c) Regional Portion of Local SAC. The “Regional Portion of Local SAC” means that portion of
the Community’s SAC payment obligations to the Council that the Community passed on to
properties within the Community’s jurisdiction and does not include any local add-on charges.
(d) SAC Deferred Amount. “SAC Deferred Amount” means the amount of the Community’s SAC
obligation under Minnesota Statutes section 473.517, subdivision 3 that has been deferred
pursuant to Minnesota Statutes section 473.517, subdivision 6 and the terms and conditions of
this Agreement.
(e) Business. “Business” means a property or business for which the aggregate SAC Determination
results in a liability of twenty-five (25) SAC units or less, before application of any Credits
available on the Site. Business does not include any type of “Residential Property” or “Publicly
Assisted Housing” as those terms are defined in the SAC Procedure Manual; nor does it include
motels, hotels, camps, nursing homes, senior housing or prisons. Business includes
“Commercial Properties,” as that term is defined in the SAC Procedure Manual, but only when
the aggregate SAC Determination for a Commercial Property is twenty-five (25) SAC units or
less, before any applicable Credits.
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Page 3 of 7 Pages
Article 2 – SAC Deferred Amount; Interest; Payments
2.1 SAC Deferred Amount. Subject to the terms and conditions of this Agreement and applicable
law, the Council will allow the Community to defer payment on the Community’s SAC obligations
for Business properties within the Community’s jurisdiction in an amount not to exceed eighty percent
(80%) of the SAC due for the properties that are either newly connected or increase capacity demand
to the metropolitan disposal system. The percentage by which the Community elects to defer payment
on the Community’s SAC obligations must be applied on a community-wide basis to all participating
Businesses within the Community’s jurisdiction. The “Community-Wide SAC Deferred Amount” is
stated as a percentage on Page 1 of this Agreement. The deferment is available only to properties for
which the aggregate Determination is twenty-five (25) SAC units or less. In each instance in which
the Community exercises this deferment option, the SAC amount that is not deferred is due and
payable at the time the SAC liability is incurred by the Community. Payments on the non-deferred
amounts are due with the regular SAC reporting to the Council, pursuant to the SAC Procedure
Manual. The deferred SAC liability begins accruing interest on the first day following the regular
SAC reporting.
2.2 Interest. Annually at each calendar year-end, the Council will determine the average rate on its
wastewater bonds, pursuant to Minnesota Statutes section 473.517, subdivision 6. All new SAC
deferments during the following calendar year will be subject to that interest rate, but that interest rate
will be fixed for the duration of the deferment period for each deferral originated in that calendar
year. Interest on unpaid SAC Deferred Amount balances will be computed in whole months,
however, payments to the Council can be annual.
2.3 Payments. When the Council invoices the Community for payments on its SAC Deferred
Amount, the Council will provide the Community with a payment schedule that amortizes the SAC
Deferred Amount and interest on that deferred amount over the term of the deferment period. The
Community’s payment schedule will list the Business properties for which the Community elected to
defer payments on the Community’s SAC obligations to the Council. The Community will make
payments to the Council at least annually. The Community may elect to make payments semi-
annually or more frequently to correspond with the Community’s Local SAC collections, assessments
or other payments from Businesses, but the same payment schedule must apply to all Community
SAC Deferred Amounts. The month(s) the Community elected to make its SAC payments to the
Council under the payment schedule are identified on Page 1 of this Agreement as the “Payment
Month(s).” The Community may repay or prepay the Council the unpaid balance of a SAC Deferred
Amount at any time prior to the end of the deferment period. Any repayment or prepayment made
by the Community shall be without penalty to the Community. The Community’s payment schedule
will be recalculated during the term of the deferment period to reflect: (a) repayments or prepayments
by the Community; (b) the Community’s election (if any) to discontinue making payments on its SAC
Deferral Amount for a Site pursuant to Section 4.2(b); (c) any Community payments to the Council
pursuant to Section 4.1(b);or (d) the addition of new Business properties for which the Community
elects to defer payment on the Community’s SAC obligations to the Council.
2.4 Local SAC Payments from Businesses. Subject to the limitation stated in Sections 3.2 and 4.1,
the Community may enter into a payment or other agreement with each Business for payment of
Local SAC to the Community on terms and conditions agreed to by the Community and the Business.
Except as described in Section 4.2, failure of a Business to make its Local SAC payments to the
Community or the Community’s failure (or choice) not to assess or collect Local SAC from a
Business shall not relieve the Community of its obligation to pay the Council any unpaid SAC
6.3
Page 4 of 7 Pages
Deferred Amount, plus interest, or otherwise meet its SAC payment obligations under Minnesota
Statutes section 473.517, subdivision 6 or other law.
Article 3 - Term of Deferments
3.1 Term of Agreement. Unless otherwise terminated pursuant to this Agreement, this Agreement
shall remain in force and effect until the term of the last deferment period expires for Business
properties listed on the Community’s payment schedule. The Council reserves the right to cancel,
suspend or modify its SAC deferral program at any time and for any reason upon thirty (30) calendar
days written notice to the Community. If the Council cancels, suspends or modifies its SAC deferral
program it will honor all existing SAC deferrals which the Community elected to make under this
Agreement prior to the cancellation, suspension or modification. The Community is responsible for
giving timely notice to the Community’s participating Businesses or prospective participant
Businesses of any cancellation, suspension or modification of the Council’s SAC deferral program
that may affect the Community’s local SAC deferral program.
3.2 Term of Deferment. The Community elects the term of the SAC deferments between the
Council and the Community, but the maximum term of a Community’s SAC deferment shall not
exceed ten (10) years. The Community may have only one SAC deferment period and must have the
same SAC deferment period for all Business properties covered by this Agreement. The
Community’s “Community-Wide SAC Deferment Period” is identified on Page 1 of this Agreement.
Article 4 – Local SAC Deferrals
4.1 Local Terms and Conditions. The Community will be responsible for identifying property and
business owners that qualify for the Community’s SAC deferral program pursuant to any Community
terms or conditions. The Council will disapprove a Community deferment request only if a property
or business owner does not qualify as a Business as defined in this Agreement. Because the Council’s
SAC deferral program is intended to benefit Businesses, the Community must administer its local
SAC deferral program in a revenue-neutral manner. The Community agrees its SAC payments to the
Council will not be less than the Regional Portion of Local SAC payments the Community receives
from participating Businesses.
(a) Local Deferment Period. The Community agrees it will not allow a Business a less generous
deferment period (i.e., a shorter deferment period) for payment of the Regional Portion of Local
SAC than the term of the Community’s Community-Wide Deferment Period. This Agreement
is not intended to govern the payment or deferment of any local add-on charges by the
Community (if any) for Business properties.
(b) Local Deferred Amount. The Regional Portion of Local SAC deferred by the Community for a
Business’s benefit shall not be less than the Community’s SAC Deferred Amount. If a Business
elects to prepay the Community some or all of the Regional Portion of Local SAC deferred by
the Community, the Community must make a like payment to the Council to cover the
Community’s SAC obligations to the Council for the Business property. If a Business elects to
prepay some of the Regional Portion of Local SAC deferred by the Community the Council will
recalculate the Community’s payment schedule.
6.3
Page 5 of 7 Pages
4.2 Unpaid Local SAC. If a Business ceases operations or moves from the Site and does not require
the incremental wastewater capacity represented by the SAC deferral, the Community may exercise
one of the following two options:
(a) Continue SAC Payments. The Community may continue to make its payments to the Council
under the payment schedule. If the Community elects this option it will accrue SAC Credits for
the Site in accordance with the SAC Credit provisions of the SAC Procedure Manual.
(b) Discontinue SAC Payments. The Community may discontinue making its payments to the
Council on the Community’s SAC Deferral Amount for the Site. The Community must notify
the Council if the Community elects this option and it must certify to the Council that the
incremental capacity no longer is needed at the Site. The Community is responsible for making
all SAC payments on the SAC Deferral Amount that were due prior to the notice. The Site will
not be credited with the portion of the wastewater capacity not paid (for future SAC
Determinations), but will receive Credit for actual SAC paid (including partial units). No
Community SAC deferral payments to the Council will be refunded. Net Credits will be
available to the Community for Community-Wide Credits only if a new SAC Determination
establishes a permanent reduction of capacity demand.
4.3 Late Community Payments. If the Community makes a late SAC deferral payment to the
Council, an additional administrative charge of two percent (2%) of the unpaid balance of the SAC
Deferred Amount per month (or such higher interest rate allowable under law) will be applied.
Article 5 - Notices
5.1 Written Notices. Any notice, request, demand and other correspondence required by or made
in accordance with this Agreement shall be in writing and delivered:
To the Council: Metropolitan Council
Attn: MCES Finance Director
390 Robert Street North
Saint Paul, Minnesota 55101-1806
To the Community: The Community’s “Contract Person” identified on Page 1
At the “Community Address” identified on Page 1
5.2 Notice Delivery. Any notices or other correspondence shall be deemed to have been received:
(a) three (3) calendar days after the date on the notice if the notice is sent by U.S. Mail; or (b) the next
business day from the date on the notice if the notice is sent by facsimile or by e-mail.
Article 6 - Defaulting Liabilities
6.1 Liability. To the extent permitted or authorized by law, the Community will hold the Council
harmless and indemnify the Council against any actions, charges, claims, costs, damages, demands,
expenses, liabilities, losses and proceedings which the Council may suffer or be subject to as a result
of any default by a Business or the Community of the Community’s SAC payment obligations under
this Agreement or under applicable law. A Business’s failure to pay Local SAC shall not relieve the
Community of its obligation to pay the Community’s SAC obligations to the Council. Nothing in
this Agreement shall be interpreted as a waiver of any liability limitations or immunities granted to
6.3
Page 6 of 7 Pages
the Council and the Community by Minnesota Statutes chapter 466 or by other applicable state or
federal law.
6.2 Survival of Terms. Notwithstanding any other provision of this Agreement, the validity of this
Article and the Community’s obligation to pay its SAC obligations shall survive the expiration or
termination of this Agreement.
Article 7 - Miscellaneous
7.1 Dispute Resolution. Any dispute arising under this Agreement shall be settled through
consultations between the Council’s and the Community’s representatives. If an agreement regarding
a dispute cannot be reached within thirty (30) days upon notice of a dispute from the Council or the
Community, either party is then entitled to bring such dispute before the courts of this state or take
such action as otherwise allowed by law.
7.2 Exercise of Rights. Any rights, powers and remedies granted to the Council and the Community
by this Agreement shall not preclude or limit any other rights, powers and remedies available to the
Council or the Community in accordance with law and other provisions of this Agreement. The
exercise of any rights, powers and remedies by the Council or the Community shall not preclude the
Council or the Community from exercising any other rights, powers and remedies available to the
Council or the Community. No failure or delay by the Council or the Community to exercise any of
their respective rights, powers and remedies under this Agreement or in accordance with applicable
laws shall be construed as a waiver of such rights, powers, and remedies. The waiver of any right,
power or remedy, in whole or in part, shall not preclude the Council or the Community from
exercising any of their other respective rights, powers or remedies.
7.3 Severability of Provisions. Each provision in this Agreement shall be severable from and
independent of the other provisions. If one or more provisions are held to be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions of this Agreement
shall not be affected and shall remain in force and effect.
7.4 Amendments and modifications. Any amendments or modifications to this Agreement shall
be in writing and shall become effective only upon execution of the amendment by the Council’s and
the Community’s authorized representatives.
7.5 Assignment. The Community shall not assign any of its rights or obligations under this
Agreement to any third party, even if the Site which was the subject of the SAC liability is removed
from the jurisdiction of the Community. The Community may not barter, trade, sell or otherwise treat
any SAC payment obligation deferments or SAC Credits as a commodity and the Council will not
honor any agreements between the Community and any third parties that purport to barter, trade, sell
or otherwise treat any SAC payment obligation deferments or SAC Credits as a commodity.
7.6 Successors. This Agreement shall be binding on the legal successors of the Council and the
Community, whether by operation of law or otherwise.
7.7 Warranty of Legal Capacity. The individuals signing this Agreement on behalf of the
Community and the Council represent and warrant on the Community’s and the Council’s behalf
respectively that the individuals are duly authorized to execute this Agreement on the Community’s
6.3
Page 7 of 7 Pages
and the Council’s behalf respectively and that this Agreement constitutes the Community’s and the
Council’s valid, binding and enforceable agreement.
IN WITNESS WHEREOF, the Community and the Council have caused this Agreement to be
executed by their duly authorized representatives. This Agreement is effective on the date of final
execution by the Council.
COMMUNITY METROPOLITAN COUNCIL
By: By:
Print Name: Jim Adams Print Name:
Title: Mayor Title:
Date: Date:
By:
Print Name: Anne Norris
Title: City Manager
Date:
MASTERSACDERERRAL
Rev. 9/27/16
6.3
Page 1 of 1
__________________________________________________________________________
FROM: John Sutter, Community Development Director
DATE: April 1, 2021
TO: Anne Norris, City Manager (for April 6 Council meeting)
SUBJECT: Consider approval of a Deferred SAC Payment Agreement with Douglas
Drive Partnership, LLP for 3549 Douglas Drive North (Bella’s Shoppe)
BACKGROUND
Bella’s Shoppe has leased the former Aquatropics space at 3549 Douglas Drive North from
the property owner, Douglas Drive Partnership, LLP. Bella’s will be a combination café,
bakery, ice cream shop, and retail store focusing on locally made items and products.
Metropolitan Council Environmental Services (MCES) has determined that Bella’s Shoppe
would be a change in use requiring the payment of a Sewer Availability Charge (SAC) fee
in the amount of $27,335 (11 SAC units).
Bella’s would like to get their building permit and begin renovating the space by the middle
of April. The city needs to collect the SAC fee when the building permit is issued, unless a
SAC deferral agreement is in place. Both Bella’s and the property owner desire to enter into
the attached agreement.
STAFF COMMENTS
Staff recommends approval of the proposed agreement which has the following terms:
‐ Bella’s would pay 50% of the SAC due ($13,667.50) upon permit issuance.
‐ The remainder would be deferred under the agreement and paid over 5 years with interest
on the deferred liability at 2.14% and monthly payments of $240.40. There is no penalty for
pre-payment, and Bella’s has said that they expect to pay it off early.
‐ If the payments are not made, the agreement gives the city the right to assess the property
for the unpaid amount during the annual assessment process for unpaid charges, and the
property owner waives their right to appeal the assessment.
COUNCIL ACTION REQUESTED
Approval of the attached Deferred SAC Payment Agreement with the owner of 3549 Douglas
Drive North, Douglas Drive Partnership, LLP.
COUNCIL STAFF REPORT
SAC Deferral Agreement
3549 Douglas Dr (Bella’s Shoppe)
6.4
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CR225-431-710468.v3
DEFERRED SAC PAYMENT AGREEMENT
This Deferred SAC Payment Agreement (“Agreement”) is made and entered into as
of the ______ day of ________________ ______, by and between Douglas Drive Partnership
LLP, a Minnesota Limited Liability Partnership (“Owner”), and the City of Crystal, a Minnesota
municipal corporation (“City”). The Owner and the City may hereinafter be referred to
individually as a “party” or collectively as the “parties.”
RECITALS
A. The Owner is the fee owner of certain real property located in the Hennepin County,
Minnesota, legally described on the attached Exhibit A (“Property”).
B. The Owner is required to pay a sewer availability charge (“SAC”) imposed by
Metropolitan Council Environmental Services Division (“MCES”), which is collected
by the City and paid to MCES.
C. The Metropolitan Council (“Met Council”) has, pursuant to Minnesota Statutes, section
473.517, subdivision 6, established a SAC deferral program that allows cities to establish a local
program to defer a percentage of the required SAC payments for qualifying small businesses.
D. The City has applied to the Met Council, entered into a Master SAC Deferral Agreement
(“Master Agreement”), acted to establish a local deferral program (“Local Deferral
Program”), and adopted a SAC Deferral Policy (“Policy”) setting out the qualifications and
requirements of the program.
E. The Policy allows deferment of 80% of the SAC payment, to be paid over a period of 5
years, at an interest rate established by the Metropolitan Council, said interest rate being
2.14% (“Interest Rate”) for deferrals approved in 2021.
F. MCES is requiring the Owner to pay 11 SAC units associated with the use of the Property.
G. The parties desire to enter into this Agreement to authorize the Owner to participate in the Local
Deferral Program and to memorialize the Owner’s obligation to make SAC payments to the City
6.4
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CR225-431-710468.v3
in accordance with the following terms and conditions.
AGREEMENT
In consideration of mutual covenants of the parties set forth herein and other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
agree as follows:
1. Recitals. The recitals set forth above are incorporated in and made part of this Agreement.
2. SAC Amount. The Owner is responsible for the following amount associated with the SAC
units assigned to the Property:
Charge Calculation Total Amount Due
(“Fees”)
MCES Sewer Availability
Charge
11 SAC units x $2,485 per unit $27,335
3. Payment Requirements and Schedule. The Owner agrees to pay the full amount of the
Fees to the City in accordance with the following schedule.
(a) Initial Payment. The Owner shall pay an initial amount of the Fees in the amount of
$13,667.50 at the issuance of the building permit for the Property. This initial payment is
50% of the Fees. The initial payment shall be no less than 20% of the Fees because no
more than 80% may be deferred under the Met Council deferral program.
(b) Deferral Payments. The Owner agrees to pay the remaining 50% of the Fees, which
totals $13,667.50 (“Deferred Amount”), with interest at the annual Interest Rate, to the
City in monthly payments of $240.40 (“Monthly Payment”) over 60 months. Interest
shall begin accruing on the 1st day of the month in which the first Monthly Payment is
due. The Monthly Payment is due on the 1st of each calendar month, beginning in the
month following the month in which the Owner pays the initial payment identified above.
The final Monthly Payment shall consist of any and all amounts remaining due under this
Agreement including, but not limited to, any remaining amount of payments or interest
the City is required to pay the Met Council under the Master Agreement for the Property.
Any late payments will be charged 2% of the unpaid balance of the Deferred Amount.
(c) Prepayment. The Deferred Amount, or any portion thereof, may be prepaid without
penalty. Interest shall accrue on the balance of the Deferred Amount at the Interest Rate
up to the date the full Deferred Amount is paid in full.
4. Compliance. This Agreement is to be interpreted in accordance with the Policy, which is
incorporated herein by reference, and the Owner, through its actions or inactions, shall not
cause the City to violate the Master Agreement.
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CR225-431-710468.v3
5. Recalculation of Credits. In the event the SAC units for the Property change for any reason
after execution of this Agreement, any new fees assessed shall be due and payable to the City
pursuant to the City Code and shall not be subject to this Agreement.
6. Ceasing Business Operations. If the business ceases operations or moves from the Property,
the Owner is responsible for making the Monthly Payments up until the time that the Owner
informs the City in writing that the business has ceased operations or has moved from the
Property. No further payments will be required under this Agreement if MCES does not
require the City to pay its MCES sewer availability charge relating to the business. If MCES
requires the City to pay its MCES sewer availability charge, any balance remaining due
under this Agreement, including interest, shall become immediately due and payable without
demand or notice by the City.
7. Default. “Default” shall mean the failure to make payments pursuant to the terms herein or
any other breach of this Agreement and failure to cure the default within ten days of the
mailing of written notice by the City to the Owner by United States Mail.
8. Remedy. Upon Default, any balance remaining due under this Agreement, including
interest, shall become immediately due and payable without demand or notice by the City. In
addition, the Owner agrees that the full balance due, including interest and any applicable
collection or administrative costs incurred by the City (collectively, the “Additional Costs”),
may be assessed against the Property pursuant to Minnesota Statutes, chapter 429, or
certified to the taxes on the Property pursuant to Minnesota Statutes, section 444.075, as an
unpaid service charge under Minnesota Statutes, section 366.012, or pursuant to any other
applicable law. Owner waives any and all procedures related to any such assessment or
certification including, but not limited to, notice, hearing and appeal of the assessment and
waive any and all rights to appeal or otherwise contest or challenge the levying of special
assessments equaling the unpaid Deferred Amount and the Additional Costs against the
Property. The Owner agrees that any requirements of Minnesota Statutes, chapter 429 with
respect to the adoption or levying of the special assessments are waived to the extent that
those requirements are not met.
9. Costs of Collection. The Owner agrees to pay all costs of collection, including reasonable
attorneys’ fees and legal expenses, incurred by the City in collection of any amounts due
herein. All such amounts are part of the Additional Costs identified herein.
10. Notices. Notices to be given under this Agreement shall be given by enclosing the same in a
sealed envelope, postage prepaid and deposited in the U.S. Postal Service, addressed to the
parties as follows.
(a) As to the Owner: Douglas Drive Partnership LLP
3539 Douglas Dr N
Crystal, MN 55422
(b) As to the City: City of Crystal
4141 Douglas Drive N.
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Crystal, MN 55422
11. Assignment. None of the parties shall assign this Agreement, nor any interest arising herein,
without the written consent of the other parties.
12. Run with the Land. The covenants, waivers and agreements contained in this Agreement
shall run with the Property and shall bind future owners of the Property and their heirs,
successors and assigns. Owner agrees to provide a copy of this Agreement to any buyer of
the Property before Owner signs a purchase agreement to sell the Property.
13. Governing Law. The laws of the State of Minnesota govern this Agreement.
14. Severability. The provisions of this Agreement are severable. If any portion of this
Agreement is, for any reason, held by a court of competent jurisdiction to be contrary to law,
such decision shall not affect the remaining provisions of this Agreement.
15. Entire Agreement. The entire Agreement of the parties is contained herein. This
Agreement supersedes all oral agreements and negotiations between the parties relating to the
subject matter hereof as well as any previous agreements presently in effect between the
parties relating to the subject matter hereof. Any alterations, amendments, deletions, or
waivers of the provisions of this Agreement shall be valid only when expressed in writing
and duly signed by the parties, unless otherwise provided herein.
16. Counterparts. This Agreement may be executed in multiple counterparts, each of which
shall be considered an original.
IN WITNESS WHEREOF, this Agreement has been executed as of the day and year
first above written.
OWNER
Douglas Drive Partnership LLP
By:__________________________________
______________
Its:__________________________________
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument as acknowledged before me this _____ day of
_______________, ______ by _______________________, the __________________ of the
Owner, a Minnesota Limited Liability Partnership company, on behalf of the company.
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CR225-431-710468.v3
CITY OF CRYSTAL
By: _______________________________
Jim Adams, Mayor
By: _______________________________
Anne Norris, City Manager
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this ______ day of
_____________, ______, by Jim Adams and Anne Norris, the mayor and the city manager,
respectively, of the city of Crystal, a Minnesota municipal corporation, on behalf of the
municipal corporation.
___________________________________
Notary Public
This instrument drafted by:
City of Crystal
4141 Douglas Drive N.
Crystal, MN 55422
(763) 531-1000
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CR225-431-710468.v3
EXHIBIT A
Legal Description of the Property
Lot 1, Block 1, Harold Herman Addition, Hennepin County, Minnesota
6.4
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: April 2, 2021
City Council
Second Work Session Agenda
Tuesday, April 6, 2021
Immediately following City Council meeting
Council Chambers/Zoom Meeting
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City
Charter, the second work session of the Crystal City Council was held on Tuesday, April 6, 2021
at ______ p.m. electronically via Zoom and in the Council Chambers at City Hall, 4141 Douglas
Drive, Crystal, Minnesota.
I. Attendance
Council members Staff
____ Parsons ____ Norris
____ Adams ____ Therres
____ Banks ____ Gilchrist
____ Budziszewski ____ Ray
____ Cummings ____ Revering
____ Kiser ____ Serres
____ LaRoche
II. Agenda
The purpose of the work session is to discuss the following agenda items:
1. Gaulke Pond update.
2. 2021 Utility Reconstruction project update.
3. Status of local emergency declaration.
4. New business. *
5. Announcements. *
III. Adjournment
The work session adjourned at ______ p.m.
* Denotes no supporting information included in the packet.
Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at (763)
531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529.
Memorandum
DATE: April 6, 2021
TO: City Council
FROM: Mark Ray, PE, Director of Public Works
SUBJECT: Central Core Storm Water Project Check In
Background
After the work session on February 16, 2021 staff mailed a letter to all the homes around Gaulke pond
asking for resident input on the potential dredging of the entire pond and lowering of the normal water
elevation.
Resident input comments
Only two comments were received in response to the letter and both were in support of the project.
Included with the support were some additional questions about what plantings would be done around
the pond, buckthorn removal, mosquito control, and potential project timeline.
Separately, City staff have also met with FAIR school and district staff and they are in support of the
project.
Next steps
At this point the critical path item is the four City storm water modeling work that Shingle Creek
Watershed Management Commission currently has underway. The modeling work looks at the overall
management of storm water, including pumping, from New Hope through Crystal and Robbinsdale into
Minneapolis. This work is anticipated to be completed mid-summer and must be done before design
activities resume.
Council Action Requested
No Council action is needed at this time.
Memorandum
DATE: April 6, 2021
TO: City Council
FROM: Mark Ray, PE, Director of Public Works
SUBJECT: 2021 Utility Recon update
Background
Bids were opened for the 2021 Utility Recon on Friday, April 2nd. Staff will be providing a verbal update
on the results of the bid and project funding at the work session.
Council Action Requested
Council consideration for awarding the construction contract is planned to occur at the April 20, 2021
meeting.