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CR 2004-018 Leases with Hennepin County Regional Railroad Authority• February 3, 2004 Council Report 2004 -018 Approve Leases with Hennepin County Regional Railroad Authority Proposed Action. Staff recommends the following motion: "Motion to approve lease amendments to lease agreement with Hennepin County Regional Railroad Authority for use of alleys between 7th and 8 Avenues North and between 17 and 18 Avenues North, and authorizing the Mayor and City Manager to execute the leases on behalf of the City of Hopkins." Overview In 1999 the City of Hopkins entered into lease agreements 73 -34011 and 73 -34044 with Hennepin county Regional Railroad Authority ( HCRRA) for the use of their Right of Way for alley purposes. The leases expire in March and February, respectively, of 2004. Lease Agreement No. 73 -34011 covers the alley along the HCRRA Right of Way between 7 and 8t Avenues North. Lease Agreement No. 73 -34044 covers the alley along the westerly portion HCRRA Right of Way between 18 and 17 Avenues North. OThe Lease agreements require the City to carry insurance coverage for those properties. Finance rY g p p Director Lori Yager has confirmed the appropriate coverage is inplace. The annual lease fee for each lease is one dollar. The term of the amend is five years which would continue the two leases to the year 2009 . Recommendations City staff recommends that the City Council approve the lease amendments as proposed and authorize the Mayor and City Manager to execute said amendments. Supporting Information ■ Location Map • Amendment to Lease Nos. 73 -34011 and 73 -34044 • HCRRA letter, January 14, 2004 • Council Reports 99 -022 and 99 -033 Joh Anderson, P.E. Assistant City Engineer o lTY Op HOPKINS Financial Impact: N/A Budgeted: YIN Source: Related Documents (CIP, ERP, etc.): Notes: • 6I (E ST. ENSION VE L A • BLVD. 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LAS No 13 -3 0[1 .14 • 2It_, c , t i L DRILLAN RD. 0 w 0 w 3f • FIRST AMENDMENT TO LEASE AGREEMENT NO. 73-34011 THIS AGREEMENT, entered into by and between the HENNEPIN COUNTY REGIONAL RAILROAD AUTHORITY, a Minnesota political subdivision, hereinafter referred to as the "HCRRA ", and City of Hopkins, 1010 First Street South, Hopkins, Minnesota 55343, a municipal corporation under the laws of the State of Minnesota, hereinafter referred to as the "LESSEE "; WITNESSETH: WHEREAS, HCRRA and LESSEE entered into a certain Lease Agreement bearing Contract No. 73- 34011, dated March 16, 1999, for trash hauling, school bus turn around, snow plowing, and alley purposes, said Lease being set forth in Exhibit I attached hereto and made a part hereof by reference; WHEREAS, HCRRA and LESSEE desire to amend the Lease in certain particulars; NOW, THEREFORE, the parties mutually agree as follows: 1. Clause III of the Lease ("Term and Termination ") is hereby amended by adding the following to the end thereof: The term of this Lease shall be extended for a period of sixty months commencing on April 1, 2004 and terminating at 2400 hours on March 31 , 2009. The effective date of this First Amendment to Lease Agreement No. 73 -34011 is April 1, 2004. Except as herein above amended, the terms, conditions and provisions of Lease Agreement No. 73- 34011, shall apply to and govern the provisions of this Agreement. THIS PORTION OF PAGE INTENTIONALLY LEFT BLANK 1 • • • LESSEE having signed this Lease, and the Hennepin County Regional Railroad Authority's Commissioners having duly approved this Lease on the day of 200 , and pursuant to such approval, the proper officials having signed this Lease, the parties hereto agree to be bound by the provisions of this Lease. By: Approved as to form: Chair, Board of Commissioners Assistant County Attorney Date: Approved as to execution: 2 HENNEPIN COUNTY REGIONAL RAILROAD AUTHORITY And: And: Deputy / Executive Director Director LESSEE -- CITY OF HOPKINS Assistant County Attorney Eugene J. Maxwell, Mayor Date: Date: Date: Steven M. Mielke, City Manager The City is organized pursuant to: Plan A Plan B Charter • • HENNEPIN COUNTY REGIONAL RAILROAD AUTHORITY 417 North Fifth Street Minneapolis, Minnesota 55401 -1362 (612/348 -9260) LEASE AGREEMENT FOR VACANT LAND Lease No. 73 -34011 Exhibit I THIS AGREEMENT, entered into by and between the HENNEPIN COUNTY REGIONAL RAILROAD AUTHORITY, a Minnesota political subdivision, LESSOR, and Citv of Hopkins, 1010 First Street South, Hopkins, Minnesota 55343, LESSEE; In consideration of the covenants by and between the parties, IT IS HEREBY AGREED: LESSEE agrees to lease from LESSOR, and LESSOR agrees to lease to LESSEE, that certain property described as follows: I. LEASED PREMISES That part of the Hennepin County Regional Railroad Authority ( HCRRA) Hopkins -to- Victoria right -of -way, as shown on HCRRA Property Map No. 1, sheet 21 of 22, that is between 7 Avenue North and 8 Avenue North, in the City of Hopkins, Minnesota, being approximately 45 feet wide, and encompassing approximately 14,394 square feet. That portion of the right -of -way which constitutes the Leased Premises is marked on Exhibit A in pink. Exhibit A is attached and incprporated by.ieference in this Lease. II. USE OF LEASED PREMISES The Leased Premises shall be for the use of LESSEE, its agents, officers and employees and invitees for the following specified purpose and shall be limited to that specified use: Trash hauling, school bus turn around, snow plowing, and alley. • III. TERM AND TERMINATION LESSEE acknowledges that the Leased Premises were acquired. by LESSOR specifically and solely for the purpose of constructing a light rail transit system and its associated facilities and that it is LESSOR`s intention to lease the Leased Premises only until they are needed for that purpose. Nothing in this Lease shall be deemed to evidence any change by LESSOR of its intended use of the Leased Premises for light rail transit purposes or other permitted transportation purposes. Rather, LESSOR has agreed to the terms of this Lease to provide a temporary income- producing use for the Leased Premises during the time required for further planning and development of the light rail transit system or other transportation system. The term of this Lease shall be for a period of sixty - months • commencing on April 1,1999, and terminating at 2400 hours on March 31, 2004. LESSOR or LESSEE may terminate this Lease or any renewal, at any time, or for any reason, by giving thirty (30) day& written notice to vacate Leased- Premises. Thirty (30) days after service of said notice, this Lease and all rights and obligations hereunder shall terminate except for such rights as may have accrued to either party prior to such termination. At the termination of this Lease, by notice or upon expiration of the Lease term, without further notice or demand, LESSEE shall deliver possession . of the Leased Premises to the LESSOR and shall remove all property placed upon the Leased Premises which it desires and has the right to remove. If it shall fail to remove such property, its right to do so shall cease at the option of the LESSOR, and LESSEE's title . thereto shall be forfeited and the same shall belong to the LESSOR; or, in such case, if the LESSOR so elects, it may, at any time after the termination, tear down and/or remove any or all property at the expense of LESSEE without any liability for. damages.. LESSEE shall thereupon promptly reimburse LESSOR for all expenses incurred by it in such removal. Upon termination by notice of this Lease, rent shall be paid by the LESSEE to the date of termination fixed by said notice, and if rent has been paid in advance, LESSOR shall refund to LESSEE the unearned portion for the period extending beyond such date of termination, and LESSEE shall have no further rights under this Lease. ip HCRRA Rev.Lease.irm.l3I18 /94 IV. RENT LESSEE agrees to pay to LESSOR the sum of One and 00/100 dollars {$1.00) annually for said premises. Such rent shall be due and payable on the first day of each anniversary year of this Lease and shall be delivered in person or mailed to LESSOR at the address set forth in Section XIV. LESSEE pays all costs for water, sewer, heat, and electricity and any other utilities, if any, used or consumed in connection with the Leased Premises, including waste or trash removal costs. 2 V. MAINTENANCE AND REPAIRS At all times during its occupancy of the Leased Premises, LESSEE shall be responsible for 100 percent of the expense of maintaining the Leased Premises and the fixtures and equipment in good repair, including but not limited to, street repair, trash and snow removal, traffic signage, and weed control and shall use reasonable precaution to prevent waste, damage, or injury. No posters, signs or advertising matter of any kind shall be posted on said premises other than advertisements or signs relating strictly, to the business which is being conducted thereon. LESSOR shall not be liable to LESSEE or those claiming by, through, or under LESSEE for any injury, death, or property damage occurring in, on, or about the Leased Premises. Without limitations of the foregoing, LESSOR shall not be liable for any loss or damage which may be sustained by LESSEE or others in, about, or adjacent to the Leased Premises by reason of the present or future condition of repair of the Leased Premises, or for loss or damage arising from the acts or omissions of LESSEE or other tenants or occupants. LESSEE shall make no alterations, additions, or improvements to the Leased Premises or modify the use or purpose of the Leased Premises without prior written consent from LESSOR. 411 HCRRA Rev.Lease.Frr. /3138/94 A. Indemnification VI. INDEMNIFICATION AND INSURANCE LESSEE shall defend, indemnify, and hold harmless LESSOR, its officials, officers, agents, and employees from any liability, claims, causes of action, judgments, damages, loses, costs, or expenses, including reasonable attorney's fees, resulting directly or indirectly from any act or omission of LESSEE, its contractors, subcontractors, officers, agents, employees, customers or invitees, in the performance of this Lease. R, Insurance, In order to protect the LESSOR and those listed above under the indemnification section, LESSEE agrees at all times during the term of this Lease to have and keep in force the following insurance coverages either under a self- insurance program or separate insurance policies: 3 • HCRRA Rev.Lease.Frm. /313 8/94 1. Commercial General Liability with the following coverages and limits. Contractual liability must be included. 3. Workers' Compensation and Employer's Liability: a. Workers' Compensation. If the contractor is based outside of the state of Minnesota, coverage must apply to Minnesota laws. b. Employer's Liability. Bodily injury by: 4 Amounts General Aggregate $750,000 Products - Completed Operations Aggregate 750,000 Personal and Advertising Injury Aggregate 750,000 Each Occurrence - Combined Bodily Injury and Property Damage 750,000 2. Automobile Liability - Combined $750,000 single limit each occurrence coverage for bodily injury and property damage covering owned, non- owned, and hired automobiles. Statutory Accident - Each Accident $1 00,000 Disease - Policy Limit 500,000 Disease - Each Employee 100,000 An umbrella or excess policy over primary liability coverages is an acceptable method to provide the required insurance limits. The above establishes minimum insurance requirements. It is the sole responsibility. of the LESSJEE to determine the need for and to procure additional coverage which may be needed in connection with this Lease. Copies of insurance policies or a self- insurance statement shall be submitted to the LESSOR upon written request. This Lease shall be valid when the LESSEE has obtained required insurance and filed an acceptable certificate of insurance with the Authority. The certificate shall name Hennepin County Regional Railroad Authority as certificate holder for commercial general liability coverage with respect to operations covered under the Lease and as an additional • • insured with respect to operations covered under the Lease. The certificate should also show that the Hennepin County Regional Railroad Authority will receive 30 days' prior written notice in the event of cancellation, non - renewal, or material change in any described policies. VII. ASSIGNMENT AND SUBLETTING LESSEE shall not, except with the prior written consent of LESSOR, assign, sublet, mortgage, pledge, or in any manner transfer the Leased Premises or this Lease. VIII. COMPLIANCE WITH LAWS, ORDINANCES, AND RULES LESSEE agrees to comply with all laws, ordinances, and regulations of federal, state, municipal and local government agencies as they apply to its occupancy of the Leased Premises and /or the business it transacts on the Leased Premises. LESSEE shall comply with any reasonable rules adopted by LESSOR for the safety, care, and cleanliness of the Leased Premises and for the preservation of good order therein and shall at all times keep the. Premises clear and safe. LESSEE shall not permit the existence of any nuisance on said Premises. LESSEE agrees that it shall not park any car, truck, equipment, or piece of machinery which is partially dismantled, non - operating, unlicensed, wrecked, junked, or that which is used only as a source for parts, on the Leased Premises. IX. REMEDIES OF LESSOR It is further . agreed between the parties hereto, that if the said LESSEE shall breach or make default in any of the conditions, covenants or agreements of this Lease, which breach or default shall continue for fifteen (1 5) days after LESSEE's receipt of written notice thereof from LESSOR, then it shall be lawful for the LESSOR, then or at any time thereafter, to declare this Lease ended, and to re- enter said premises and take possession thereof and to use any reasonable or necessary lawful force for regaining possession; whereupon the rights and obligations of the parties shall be the same as above specified in the case of termination at the end of thirty (30) days' notice; and it is hereby further, agreed ar. d... provided that any waiver at any time of a breach of any condition', covenant or agreement of this Lease shall extend only to the particular breach so waived and shall, in no manner, impair or affect the existence of such condition, covenant or agreement, or the right of LESSOR thereafter to avail itself of same and any subsequent breach thereof. In the event LESSOR has to take action for repossession of said property, LESSEE, its assigns or heirs shall be liable for reasonable attorney's fees incurred by LESSOR. HCRRA Revjease_Frm. /3/1 8/94 5 • • X. ENVIRONMENTAL CONCERNS LESSEE shalt not create or permit any condition of the Premises that could present a.threat to human health or to the environment. LESSEE shall defend, indemnify and hold harmless LESSOR and its affiliates from any suit or claim growing out of any damages alleged to have been caused by, contributed to, or aggravated by the violation by LESSEE, LESSEE's contractors, subcontractors or agents or any sub - lessee's violation of any federal, state or local laws, ordinances, regulations or requirements pertaining to air, water (surface or groundwater) or noise pollution . or any toxic, hazardous or solid substances or wastes, pollutants or contaminants, including, without limitation, asbestos, urea formaldehyde, the group of organic compounds known as polychlorinated biphenyls, petroleum products including gasoline, fuel oil, crude oil and various constituents of such products (all of which are hereinafter collectively referred to as "contamination ") and the storage, handling, use or disposal of any such material by LESSEE, any sub - lessee, contractor, subcontractor or agent of LESSEE performing work on or from the Premises. LESSEE shall bear the expense of all practices or work, preventative, investigative or remedial, which may be required because of any conditions of the Premises caused by LESSEE or any use of the Premises by LESSEE or those claiming by, through, or under LESSEE, during LESSEE's period of occupancy or during LESSEE's ownership or use prior to the date of this Lease. LESSEE expressly agrees that the indemnification defense and hold harmless obligations it hereby assumes shall survive cancellation of this Lease. LESSEE agrees that statutory limitation periods on actions to enforce these obligations shall not be deemed to commence until LESSOR discovers any such health or environmental impairment and LESSEE hereby knowingly and voluntarily waives the benefits of any shorter limitation period. LESSOR shall have the right, but not the duty, to enter upon the Premises from time to time as set forth below to inspect the Premises for environmental contamination and in the course thereof to conduct soil and groundwater testing. LESSOR may enter the Premises during regular business hours of LESSEE without prior notice, and may enter the Premises during periods other than regular business hours either with prior written consent of LESSEE or without if LESSOR reasonably believes that an emergency exists on the Premises. LESSOR shall conduct any such inspections or testing so as to minimize interference with LESSEE's business operations. LESSOR's entry onto the Premises pursuant to this paragraph shall not relieve the LESSEE's obligation to pay rent under this Lease. Notwithstanding the foregoing, LESSEE is not responsible, by virtue of the terms of this Lease, for any contamination existing on the Premises prior to LESSEE's use or occupancy of the Premises. HCRRA Rev.Lease.Frm.13 /18194 6 At the request of LESSOR, upon the termination of the Lease, or during the term hereof, LESSEE shall pay for the services of a state- approved contractor to sample what appears to be any visibly contaminated areas of the premises. For any contaminated areas, LESSEE's contractor shall provide remediation recommendations to LESSOR, and shall perform remediation to the satisfaction of LESSOR. Copies of the results shall be forwarded to LESSOR by LESSEE to ensure that the premises are returned to LESSOR reasonably free of contamination and in compliance with all applicable environmental laws, ordinances, regulations and requirements. The provisions of this paragraph shall survive the termination of this Lease. Notwithstanding the foregoing, LESSEE is not responsible, by virtue of the terms of this Lease, for any testing or sampling costs resulting from contamination existing on the Premises prior to LESSEE's use or occupancy of the Premises. LESSOR may enter the Leased Premises at any time to examine, inspect, or protect the premises and to make alterations, renovations, or repairs. No waivers, alterations or modifications of this Lease or any agreements in connection therewith shall be valid unless in writing duly executed by both LESSOR and LESSEE herein. All notices required or permitted pursuant to this Lease shall be directed to the following individuals and shall be either hand - delivered or mailed to the following addresses: To LESSEE: To LESSOR: • HCRRA Rev.Lease.Frm. /3/18/84 XI. TESTING PROVISION XII. RIGHT OF ENTRY XIII. AMENDMENTS XIV. NOTICES City of Hopkins 2) 1010 First Street South Hopkins, MN 55343 Hennepin County Regional Railroad Authority 417 North Fifth Street, Suite 320 Minneapolis, MN 55401 -1362 Attention: Director, Hennepin County Regional Railroad Authority 7 • HCRRA Rev.Lease.F:m./3 /18/94 XV. ACCEPTANCE LESSEE also accepts said premises subject to any want or failure at any time of LESSOR's title to said premises or any part thereof and LESSEE shall assume any damages sustained by LESSEE in connection therewith. LESSEE also accepts such premises subject to rights of any party, including LESSOR, in and to any existing roadways and easements. LESSEE agrees to provide to LESSOR or other tenants of LESSOR access over and through the premises on these roadways and easements should such access be deemed necessary by LESSOR. LESSEE accepts said premises subject to the right of LESSOR, its employees, agents and contractors to walk upon said premises to repair adjacent property and the right of LESSOR, its employees, agents and contractors to temporarily place equipment upon the leased property for the purpose of maintaining, repairing or inspecting or constructing upon LESSOR's adjacent property. This agreement shall be subject to the rights of all licenses, permits and easements for poles, wires, pipelines, sewers and billboards that exist or may be placed upon, across, above, or underneath the Leased Premises by LESSOR, its employees, agents, licensees and representatives or invitees. LESSOR reserves unto itself, its employees, agents, licensees and representatives the right to place additional poles, wires, pipelines, sewers and billboards upon, across, above, or underneath the Leased Premises and agrees that any such additional placements shall be conducted in a manner as to not unreasonably interfere with LESSEE's operations thereon. XVI. LIENS AND ENCUMBRANCES LESSEE shall not permit any liens or encumbrances to be established or to remain against the Leased Premises. Liens or encumbrances for purposes of this section mean any mortgage, pledge, security interest, lien or encumbrance on (or affecting) any portion of the Leased Premises, including (without limitation) tax liens or encumbrances and liens or encumbrances with respect to work performed or equipment or material furnished in connection with LESSEE's use of the Leased Premises. XVII. SECURITY DEPOSIT LESSEE agrees to deposit with the LESSOR the sum of Zero and 001100 Dollars /$0.00). Said sum shall be held by LESSOR as security for the faithful performance by LESSEE of all terms, covenants and conditions of the Lease. If LESSEE defaults with respect to any provision of this Lease, LESSOR may use, apply or retain all or any part of this security deposit to remedy the default. If any portion of the deposit is so used or applied, LESSEE shall, five (5) days after written demand by LESSOR, deposit cash with'LESSOR in an amount sufficient to restore the security deposit to its original amount and LESSEE's failure to do so shall be a breach of this Lease. LESSOR shall not 8 • • be required to keep the security deposit separate from its general funds, and LESSEE shall not be entitled to interest on any such deposit, except as required by statute for residential leases. XIX SUBURBAN HENNEPIN REGIONAL PARK DISTRICT PERMIT AGREEMENT LESSEE agrees that the rights contained on this lease are subject to and subordinate to the rights granted and contained in the Permit Agreement between LESSOR and the Suburban Hennepin Regional Park District (SHPD) A09222 (parcel 73- 34001 ) dated July 30, 1992 and that LESSEE shall comply with all rules and regulations of the SHPD in regards to the exercise of its rights over LESSOR's right of way, including but not limited to those regarding safety. T' • HCRRA Rev.Lease.Frm•13!18194 9 • LESSEE having signed this Lease, and the Hennepin County Regional Railroad Authority's Commissioners having duly approved this Lease on the day of 199 , and pursuant to such approval, the proper officials having signed this Lease, the parties hereto agree to be bound by the provisions of this Lease. Approved as to form: 1 f ,� Assistarf Coaity Attorney' Date: Approve as to ex-c tion: Asist(5 County Attorn Date: `f /2-V 99 HCRRA Rev.Lease,Frm. /3118/94 1 0 HENNEPIN COUNTY REGIONAL RAILROAD AUTHORITY And: And: Date: yf /qi LESSEE — CITY OF HOPKINS arias Redepenning, Date: t .41 /g ct Steven M. Mielke, City Manager The City is organized pursuant to: Plan A Plan B Charter : • s — 73-34032.. - ,Vegman \ ! - t. ..7 . ...; . --....• ;.. • k4, •• q. 1, • D • 42 ": (E.AT V I C701 I lk A, To - hoPv...D4 -. 5 a-c-sv4.1190?.. IL) - t45 14. or. • .•••• • 73343f • Rudy, tiliker 4 _ • . • • - • • • i■■••e - —7 \ . ..V .. ; se• • •• Mr how %V ass . 4 ••• ■ t ‘la 61 A'. .0 • • 21 ' • , • !ic N. • . iso EXHIBIT A • • FIRST AMENDMENT TO LEASE AGREEMENT NO. 73 -34044 THIS AGREEMENT, entered into by and between the HENNEPIN COUNTY REGIONAL RAILROAD AUTHORITY, a Minnesota political subdivision, hereinafter referred to as the "HCRRA ", and City of Hopkins, 1010 First Street South, Hopkins, Minnesota 55343, a municipal corporation under the laws of the State of Minnesota, hereinafter referred to as the "LESSEE "; WITNESSETH: WHEREAS, HCRRA and LESSEE entered into a certain Lease Agreement bearing Contract No. 73- 34044, dated February 23, 1999, for trash hauling, snow plowing and school bus turn around purposes, said Lease being set forth in Exhibit I attached hereto and made a part hereof by reference; WHEREAS, HCRRA and LESSEE desire to amend the Lease in certain particulars; NOW, THEREFORE, the'parties mutually agree as follows: 1. Clause III of the Lease ( "Term and Termination ") is hereby amended by adding the following to the end thereof: The term of this Lease shall be extended for a period of sixty months commencing on March 1, 2004 and terminating at 2400 hours on February 28, 2009. The effective date of this First Amendment to Lease Agreement No. 73 -34044 is March 1, 2004. Except as herein above amended, the terms, conditions and provisions of Lease Agreement No. 73 -34044 , shall apply to and govern the provisions of this Agreement. THIS PORTION OF PAGE INTENTIONALLY LEFT BLANK 1 • By: Approved as to form: Chair, Board of Commissioners LESSEE having signed this Lease, and the Hennepin County Regional Railroad Authority's Commissioners having duly approved this Lease on the day of 200 , and pursuant to such approval, the proper officials having signed this Lease, the parties hereto agree to be bound by the provisions of this Lease. Assistant County Attorney Date: Approved as to execution: HENNEPIN COUNTY REGIONAL RAILROAD AUTHORITY And: And: Deputy / Executive Director Director LESSEE — CITY OF HOPKINS Assistant County Attorney Eugene J. Maxwell, Mayor Date: Date: 2 Steven M. Mielke, City Manager Date: The City is organized pursuant to: Plan A Plan B Charter • • HENNEPIN COUNTY REGIONAL RAILROAD AUTHORITY 417 North Fifth Street Minneapolis, Minnesota 55401 -1362 (6121348 -9260) AGREED: LEASE AGREEMENT FOR VACANT LAND L LEASED PREMISES , . 11. USE OF LEASED PREMISES Trash hauling, snow plowing and school bus turn around. Lease No. 73 -34044 Exhibit I THIS AGREEMENT, entered into by and between the HENNEPIN COUNTY REGIONAL RAILROAD AUTHORITY, a Minnesota political subdivision, LESSOR, and City of Hopkins, 1010 First Street South, Hopkins, Minnesota 55343, LESSEE; In consideration of the covenants by and between the parties, IT 15 HEREBY LESSEE agrees to lease from LESSOR, and LESSOR agrees to lease to LESSEE, that certain property described as follows: The southwesterly 24 feet of the Hennepin County Regional Railroad Authority Hopkins -to- Victoria right -of -way extending northwesterly from the east line of the alley between 17th Avenue North and 18t Avenue North to the west line of 18t Avenue North in the City of Hopkins, Minnesota, encompassing approximately 5,760 square feet. That portion of the right -of -way which constitutes the Leased Premises is marked on Exhibit A in pink. Exhibit A is attached and incorporated by reference in this Lease. The Leased Premises shall be for the use of LESSEE, its agents, officers and employees and invitees for the following specified purpose and shall be limited to that specified use: • III. TERM AND TERMINATION. LESSEE acknowledges that the Leased Premises were acquired by LESSOR specifically and solely for the purpose of constructing a light., rail transit system and its . associated facilities and that it is LESSOR's intention to lease. the Leased Premises only until they are needed for that purpose. Nothing in this Lease shall be deemed to evidence any change by LESSOR of its intended use of the Leased Premises for light rail; transit purposes or other permitted transportation purposes, Rather, LESSOR has agreed to the .terms of. this Lease to provide a temporary income - producing use for the Leased Premises during the time required for further planning and development of the light rail :transit system or other transportation system. • HCRRA Rev.Lease.Frm. /3/18194 IV. RENT 2 The term of this Lease shall be. for a period of si months commencing on March 1,1999, and terminating at 2400 hours on February 29, 2004. LESSOR or LESSEE may terminate this Lease-or any renewal, at any tiime, or for any reason, by giving thirty (30) days' written notice to vacate Leased Premises. Thirty. (30) days . after service of said notice, this Lease and all rights and obligations hereunder shall terminate except for such rights as may have accrued to either party prior:: to such termination. At:the termination of this Lease, by notice or upon expiration of the Lease term,. Without further notice or demand, LESSEE shall deliver possession of the Leased Premises to • the LESSOR, and shall . remove all property placed upon the Leased. Premises. which it desires :and has the right to remove. If it shall fail to remove such property, its right to do so shall; cease, at the.:Option of the LESSOR, and LESSEE's title thereto shall be forfeited and the same shall belong .to the LESSOR; or, in such case, if the LESSOR so elects, it may, at any time after the termination, tear down and/or remove any or all property at the expense of LESSEE without any liability for damages. LESSEE shall thereupon promptly reimburse LESSOR for all expenses incurred by it in such removal. Upon termination by notice of this Lease, rent shall be paid by the .LESSEE to the date of termination fixed by said notice, and if rent has been paid in advance,, LESSOR shall refund to LESSEE the unearned portion for the period extending beyond such date of termination, and LESSEE shall have no further rights under this Lease. LESSEE. agrees''to pay to LESSOR the sum of One and 00/100 dollars ($1.00) 1 annually for said premises. Such rent shall be due and payable on the first day of each anniversary year of this Lease and shall be delivered in person or mailed to LESSOR at the address set forth in Section XIV. LESSEE pays all costs for water, sewer, heat, and electricity and any other utilities, if any, used or consumed in connection with the Leased Premises, including waste or trash removal costs. • A. Indemnification V. MAINTENANCE AND REPAIRS At all times during its occupancy of the Leased Premises, LESSEE shall be responsible for 100 percent of the expense of maintaining the Leased Premises and the fixtures and equipment in good repair, including but not limited to, street repair, trash and snow removal and weed control and shall use reasonable precaution to prevent waste, damage, or injury. No posters, signs or advertising matter of any kind shall be posted on said premises other than advertisements or signs relating strictly to the business which is being conducted thereon. LESSOR shall not be liable to LESSEE or those claiming by, through, or under LESSEE for any injury, death, or property damage occurring in, on, or about the Leased Premises. Without limitations of the foregoing, LESSOR shall not be liable for any Toss or damage which may be sustained by LESSEE or others in, about, or adjacent to the Leased Premises by reason of the present or future condition of repair of the Leased Premises, or for loss or damage arising from the acts or omissions of LESSEE or other tenants or occupants. LESSEE shall make no alterations, additions, or improvements to the Leased Premises or modify the use or purpose of the Leased Premises without prior written consent from LESSOR. Vi. INDEMNIFICATION AND INSURANCE LESSEE shall defend, indemnify, and hold harmless LESSOR, its officials, officers, agents, and employees from any liability, claims, causes of action, judgments, damages, loses, costs, or expenses, including reasonable attorney's fees, resulting directly or indirectly from any act or omission of LESSEE, its contractors, subcontractors, officers, agents, employees, customers or invitees, in the performance of this Lease. B. Insurance In .order to protect the LESSOR and those listed above under the indemnification section, LESSEE agrees at all times during the term of this Lease to have and keep in force the following insurance coverages either under a self - insurance program or separate insurance policies: HCRRA Rev.Lease.Frm. /3/18194 1. Commercial General Liability with the following coverages and limits. Contractual liability must be included. General Aggregate $750,000 3 Amounts • • Products- Completed Operations Aggregate 750,000 Personal and Advertising Injury. Aggregate 750,000 Each Occurrence - Combined Bodily injury and Property Damage 750,000 2. Automobile Liability - Combined $750,000 single limit each occurrence coverage for bodily injury and property damage covering owned, nonowned, and hired automobiles. 3. Workers' Compensation and Employer's Liability: a. Workers' Compensation. If the contractor is based outside of the state of Minnesota, coverage must apply to Minnesota laws. _ b. Employer's Liability. Bodily injury by: Amounts Statutory Accident - Each Accident $1 00,000 Disease - Policy Limit 500,000 Disease - Each Employee 100,000 An umbrella or excess policy over primary liability coverages is an acceptable method to provide the required insurance limits. The above establishes minimum insurance requirements. It is the sole responsibility of the LESSEE to determine the need for and to procure additional coverage which may be needed in connection with this Lease. Copies of insurance policies or a self- insurance statement shall be submitted to the LESSOR upon written request. This Lease shall be valid when the LESSEE has obtained required insurance and filed an acceptable certificate of insurance with the Authority. The certificate shall name Hennepin County Regi Railroad ! Authority as certificate holder for commercial general liability coverage with respect to operations covered under the Lease and as an additional insured with respect to operations covered under the Lease. The certificate should also show that the Hennepin County Regional Railroad Authority will receive 30 days' prior written notice in the event of cancellation, nonrenewal, or material change in any described policies. HCRRA Rev.Lease.Frm.13118 /94 4 • • • LESSEE shall not, except with the prior written consent of LESSOR, assign, sublet, mortgage, pledge, or in any manner transfer the Leased Premises or this Lease. HCRRA Rev.Lease.Frm.13118194 VII. ASSIGNMENT AND SUBLETTING VIII. COMPLIANCE WITH LAWS, ORDINANCES, AND RULES LESSEE agrees to comply with all laws, ordinances, and regulations of federal, state, municipal and local government agencies as they apply to its occupancy of the Leased Premises and /or the business it transacts on the Leased Premises. LESSEE shall comply with any reasonable rules adopted by LESSOR for the safety, care, and cleanliness of the Leased Premises and for the preservation of good order therein and shall at all times keep the Premises dear and safe. .LESSEE shall not permit the existence of any nuisance on said Premises. LESSEE agrees that it shall not park any car, truck, equipment, or piece of machinery which is partially dismantled, non - operating, unlicensed, wrecked, junked, or that which is used only as a source for parts, on the Leased Premises. IX. REMEDIES OF LESSOR It is further agreed between the parties hereto, that if the said LESSEE shall breach or make default in any of the conditions, covenants or agreements of this Lease, which breach or default shall continue for fifteen (15) days after LESSEE's receipt of written notice thereof from LESSOR, then it shall be lawful for the LESSOR, then or at any time thereafter, to declare this Lease ended, and to re -enter said premises and take possession thereof and to use any reasonable or necessary lawful force for regaining possession; whereupon the rights and obligations of the parties, shall be the same as above specified in the case of termination at the end of thirty (30) days' notice; and it is hereby further agreed and provided that any waiver at any time of a breach of any condition, covenant or agreement of this Lease shall extend only to the particular breach so waived and shall, in no manner, impair or affect the existence of such condition, covenant or agreement, or the right of LESSOR thereafter to avail itself of same and any subsequent breach thereof. in the event LESSOR has to take action for repossession of said property,. LESSEE, its assigns or heirs shatl be liable for reasonable attorney's fees incurred by LESSOR, X. ENVIRONMENTAL CONCERNS LESSEE shall not create or permit any condition of the Premises that could present a threat to human health or to the environment. LESSEE shall defend, indemnify and hold harmless LESSOR and its affiliates from any suit or claim growing out of any damages alleged to have been caused by, contributed to, or aggravated by the violation by LESSEE, LESSEE's contractors, subcontractors or agents or any sub - lessee's violation of any federal, state or local laws, ordinances, regulations or requirements pertaining to air, water (surface or groundwater) or noise pollution or any toxic, hazardous or solid substances or wastes, pollutants or 5 • • • contaminants, including, without limitation, asbestos, urea formaldehyde, the group of organic compounds known as polychlorinated biphenyls, petroleum products including gasoline, fuel oil, crude oil and various constituents of such products (all of which are hereinafter collectively referred to as "contamination ") and the storage, handling, use or disposal of any such material by LESSEE, any sub- lessee, contractor, subcontractor or agent of LESSEE performing work on or from the Premises. LESSEE shall bear the expense of all practices or work, preventative, investigative or remedial, which may be required because of any conditions of the Premises caused by LESSEE or any use of the Premises by LESSEE or those claiming by, through, or under LESSEE, during LESSEE's period of occupancy or during LESSEE's ownership or use prior to the date of this Lease. LESSEE expressly agrees that the indemnification defense and hold harmless obligations it hereby assumes shall survive cancellation of this Lease. LESSEE agrees that statutory limitation periods on actions to enforce these obligations shall not be deemed to commence until LESSOR discovers any such health or environmental impairment and LESSEE hereby knowingly and voluntarily waives the benefits of any shorter limitation period. LESSOR shall have the right, but not the duty, to enter upon the Premises from time to time as set forth below to inspect the Premises for environmental contamination and in the course thereof to conduct soil and groundwater testing. LESSOR may enter the Premises during regular business hours of LESSEE without prior notice, and may enter the Premises during periods other than regular business hours either with prior written consent of LESSEE or without if LESSOR reasonably believes that an emergency exists on the Premises. LESSOR shall conduct any such inspections or testing so as to minimize interference with LESSEE's business operations. LESSOR's entry onto the Premises pursuant to this paragraph shall not relieve the LESSEE's obligation to pay rent under this Lease. . Notwithstanding the foregoing, LESSEE is not responsible, by virtue of the terms of this Lease, for any contamination existing on the Premises prior to LESSEE's use or occupancy of the Premises. HCRRA Rev.Lease.Frm. /3f1 8/94 XL TESTING PROVISION At the request of LESSOR, upon the termination of the Lease, or during the term hereof, LESSEE shall pay for the services of a state - approved contractor to sample what appears to be any visibly contaminated areas of the premises. For any contaminated areas, LESSEE'S contractor shall provide remediation recommendations to LESSOR, and shall perform remediation to the satisfaction of LESSOR. Copies of the results shall be forwarded to LESSOR by LESSEE to ensure that the premises are returned to LESSOR reasonably free of contamination and in compliance with all applicable environmental laws, ordinances, regulations and requirements. The provisions of this paragraph shall survive the termination of this Lease. Notwithstanding the foregoing, LESSEE is not responsible, by virtue of the terms of this Lease, for any testing or sampling costs resulting from contamination existing on the Premises prior to LESSEE'S use or occupancy of the Premises. 6 • LESSOR may enter the Leased Premises at any time to examine, inspect, or protect the premises and to make alterations, renovations, or repairs. No waivers, alterations or modifications of this Lease or any agreements in connection therewith shall be valid unless in writing duly executed by both LESSOR and LESSEE herein. All notices required or permitted pursuant to this Lease shall be directed to the following individuals and shall be either hand - delivered or mailed to the following addresses: To LESSEE: To LESSOR: F4CRRA Rev- Lease.Frm.13/ t 8/94 City of Hopkins 1010 First Street South Hopkins, MN 55343 Hennepin County Regional Railroad Authority 417 North Fifth Street, Suite 320 Minneapolis, MN 55401 -1362 Attention: Director, Hennepin County Regional Railroad Authority XII. RIGHT OF ENTRY XIII. AMENDMENTS XIV. NOTICES XV. ACCEPTANCE LESSEE also accepts said premises subject to any want or failure at any time of LESSOR's title to said premises or any part thereof and LESSEE shall assume any damages sustained by LESSEE in connection therewith. LESSEE also accepts such premises subject to rights of any party, including LESSOR, in and to any existing roadways and easements. LESSEE agrees to provide to LESSOR or other tenants of LESSOR access over and through the premises on these roadways and easements should such access be deemed necessary by LESSOR. LESSEE accepts said premises subject to the right of LESSOR, its employees, agents and contractors to walk „upon said premises to repair adjacent property and the right of LESSOR, its employees, agents and contractors to temporarily place equipment upon the leased property for the purpose of maintaining, repairing or inspecting or constructing upon LESSOR's adjacent property. This agreement shall be subject to the rights of all licenses, permits and easements for poles, wires, pipelines, sewers and billboards that exist or may be placed upon, across, above, or underneath the Leased Premises by LESSOR, its employees, agents, licensees and . representatives or invitees. LESSOR reserves unto itself, its employees, agents, licensees and 7 • • • representatives the right to place additional poles, wires, pipelines, sewers and billboards upon, across, above, or underneath the Leased Premises and agrees that any such additional placements shall be conducted in a manner as to not unreasonably interfere with LESSEE's operations thereon. HCRRA Rev,Lease.Frm.13118 /94 XVI. LIENS AND ENCUMBRANCES LESSEE shall not permit any liens or encumbrances to be established or to remain against the Leased Premises. Liens or encumbrances for purposes of this section mean any mortgage, pledge, security interest, lien or encumbrance on (or affecting) any portion of the Leased Premises, including (without limitation) tax liens or encumbrances and liens or encumbrances with respect to work performed or equipment or material furnished in connection with LESSEE'S use of the Leased Premises. XVII. SECURITY DEPOSIT LESSEE agrees to deposit with the LESSOR the sum of Zero and 001100 Dollars ($0.00). - Said sum shall be held by LESSOR as security for the faithful performance by LESSEE of all terms, covenants and conditions of the Lease. If LESSEE defaults with respect to any provision of this Lease, LESSOR may use, apply or retain all or any part of this security deposit to remedy the default. If any portion of the deposit is so used or applied, LESSEE shall, five (5) days after written demand by LESSOR, .deposit cash with LESSOR in an amount sufficient to restore the security deposit to its original amount and LESSEE'S failure to do so shall be a breach of this Lease. LESSOR shall not be required to keep the security deposit separate from its general funds, and LESSEE shall not be entitled to interest on any such deposit, except as required by statute for resideritial leases. XIX SUBURBAN HENNEPIN REGIONAL PARK DISTRICT PERMIT AGREEMENT LESSEE agrees that the rights contained on this lease are subject to and subordinate to the rights granted and contained in the Permit Agreement between LESSOR and the Suburban Hennepin Regional Park District (SHPD) A09222 (parcel 73- 34001) dated July 30, 1992 and that LESSEE shall comply with all rules and regulations of the SHPD in regards to the exercise of its rights over LESSOR's right of way, including but not limited to those regarding safety. • • • LESSEE having signed this Lease, and the Hennepin County Regional Railroad Authority's Commissioners having duly approved this Lease on the day of _, 199 , and pursuant to such approval, the proper officials having signed this Lease, the parties hereto agree to be bound by the provisions of this Lease. Approved as to form: Asststfint C i (tnty Attorne Date: Approved as to execution: Assists Date: HCRRA Rev.Lease.Frm. /3 /1 /94 Director LESSEE — CITY OF HOPKINS 9 HENNEPIN COUNTY REGIONAL RAILROAD AUTHORITY Char, Board of Commissioners Charles Redepenning, ayor Date: rib.. 5 / ?4 Date: Steven M. Mielke, City Manager The City is organized pursuant to: Plan A Plan B Charter 11( • LEASE /3-3 T, C, Da DUE- LE-PtsE 73 -31 L} z - I ac kA wc, PO-51 N � S TAV E 1-k vv L1, 7 .\ \. - \,\ \ ` \ \ �\, \ \ \ �� ..\ �� \ • \ ; - \ \- \ / . . \ --el" \ • "" .... , - . \ L"\ _ ,e . \ . 0 --. \\ ..... - -• . � \ ' ' \ o .._ \ • Ll -1 - " fit ..,, , ?..- \_ i HEt- NEFIr: COUt:Tf REGION. RAILROAD Q TR .4 tL • January 14, 2004 John Anderson City of Hopkins 1010 First Street South Hopkins, MN 55343 HENNEPIN COUNTY REGIONAL RAILROAD AUTHORITY 417 North Fifth Street, Suite 320, Minneapolis, MN 55401 -1362 (612) 348 -9260 FAX: (612) 348 -9710 Re: First Amendment to Lease Agreement Nos. 73 -34011 and 73 -34044 Dear Mr. Anderson: I have enclosed two copies each of the above - referenced amendments. Please review these lease amendments, and if you agree to the terms, have them signed by the proper authorities, and returned to this office. Upon approval of our Board I will send you fully executed copies for your files. I regret that the County Board meeting schedule has not yet been set for February, so I cannot tell you a firm date by which the lease amendments need to be returned. If possible, it would be best if the lease amendments were returned by the second week of February. This timeline is flexible, however. Please call me in February with an update on the lease amendments' status at the city, and we can make adjustments at that time. Please feel free to contact me with any questions. I may be reached at 612 -348 -2691. Thanks so much. Sincerely, • Jessica Galatz Property Management Specialist Enclosures (4) Peter McLaughlin Chair BOARD OF COMMISSIONERS Gail Dorfman Mark Stenglein Linda Koblick Mike Opat Randy Johnson Penny Steele Vice Chair Secretary Treasurer January 25, 1999 Ask Proposed Action Overview • Rent for the property would be $1.00 a year. Supporting Documents • Draft lease • Map Parsons s sistant to the City Manager Council Report 99 -022 Approval of Lease with Hennepin Co. Regional Railroad Authority Staff recommends approval of the following motion: Motion to approve a lease with the Hennepin County Regional Railroad Authority for use of an alley off 18 Avenue North and to authorize Mayor Redepenninq and City Manager Mielke to execute the lease on behalf of the City of Hopkins. The proposed lease is for use of an alley off 18 Avenue North, north of 3' Street North, for the next 5 years. The property is 24' x 240', and is just south of the north corridor trail of the Southwest Regional LRT Trails. The property is owned by the Hennepin Co. Regional Railroad Authority; the City leased the property from the Authority from Feb. 1, 1994, to Dec. 31, 1996. The proposed City/public uses of the property are trash hauling, snow plowing and school bus turn- around. The property is of value to the City because it means that 18 Ave. No. on that block and the alley to the east of it are not dead -ends for City vehicles. Primary Issues to Consider • Is the insurance coverage called for in the lease appropriate and in place? • Should the City enter into the proposed lease? • Primary Issues to Consider • Is the insurance coverage called for in the lease appropriate and in place? Finance Director Lori Yager has indicated that the proposed insurance coverage is appropriate. The property would be added to the list of insured City properties. • Should the City enter into the proposed lease? The Authority has reduced the rent in the proposed lease compared to the rent the City paid in 1994- 1996. It did so in response to the City's exemption of Authority property from a storm water charge, where Authority property is used for a public trail. The property is of value to Hopkins Public Works because it eliminates a dead -end street and alley. Public Works Director Steve Stadler supports entering into the proposed lease. Staff recommends that the Council approve the proposed lease. .Alternatives The Council has the following alternatives regarding this matter: 1. Approve the item as recommended by staff. 2. Amend and approve the item., 3. Continue the item for additional information. 4. Deny the item. 2 February 5, 1999 imk Overview The proposed lease is for use of an alley between 7 Avenue North and 8th Avenue North, just north of Mainstreet, for the next 5 years. The property is 45' x 320', and is owned by the Hennepin Co. Regional Railroad Authority. Prior to 1993, the City leased the property from the Authority. The proposed City /public uses of the property are trash hauling and snow plowing. The property is • of value to the City because it means that the alley on that block is not a dead end for City vehicles. The property also allows vehicular access to private property, access that would be difficult for residents to replace if the property were not available for continued use as an alley. • Proposed Action Staff recommends approval of the following motion: Motion to approve a lease with the Hennepin County Regional Railroad Authority for use of an alley between 7th Avenue North and 8 Avenue North and to authorize Mayor Redepenninq and City Manager Mielke to execute the lease on behalf of the City of Hopkins. Rent for the property would be $1.00 a year. Primary Issues to Consider • Is the insurance coverage called for in the lease appropriate and in place? • Should the City enter into the proposed lease? Supporting Documents • Draft lease • Map • m Parsons, Assistant to the City Manager Approval of Lease with Hennepin Co. Regional Railroad Authority Council Report 99 -033 • • Primary Issues to Consider • Is the insurance coverage called for in the lease appropriate and in place? Finance Director Lori Yager has indicated that the proposed insurance coverage is appropriate. The property would be added to the list of insured City properties. • Should the City enter into the proposed lease? The property is of value to Hopkins Public Works because it eliminates a dead -end alley. Public Works Director Steve Stadler supports entering into the proposed lease. Staff recommends that the Council approve the proposed lease. Alternatives The Council has the following alternatives regarding this matter: • 1. Approve the item as recommended by staff. 2. Amend and approve the item. 3. Continue the item for additional information. 4. Deny the item. 2 � Memorandum • To: Honorable Mayor and Members of the City CC: Steve Mielke, City Manager From: Chief Craig A. Reid Date: 1/29/2004 Re: Report on Police Car Specifications Thank -you. lairk 4 Attached to this memo you will find the report prepared by the Police Department detailing the factors involved in selecting vehicles to serve as patrol squad cars for the City of Hopkins. This report also looks at impacts of the key factors on an alternative of purchasing a mid sized passenger vehicle. Design and vehicle set up concerns that would arise from changing to a different vehicle platform are covered in the report as well. Data used in this report was gathered from the Michigan State Police vehicle tests as well as the National Fleet Managers and National Police Fleet Managers Association. I will be present at the Council meeting to answer any questions or provide other information you require for a discussion on this topic. To: Steve Mielke, City Manager 4110 From: Chief Craig Reid Date: 1/29/2004 Re: Squad Car Purchase Decisions • Overview: The Department has been asked to review its policy for purchasing full size cars instead of midsize vehicles for marked police squads. The department currently purchases vehicles certified as "police package" from the State of Minnesota fleet bid list. The last bid price expired on October 1, 2003. To obtain 2003 bid pricing, squads slated for replacement were ordered on September 26, 2003 with a delivery date of March 1. Costs are expected to increase when the state completes the 2004 bid package. History: Since 1981, the National Law Enforcement and Technology Center (LETC) and the National Institute of Justice (ND) have worked in partnership with the Michigan State Police (MSP) to test and certify vehicles for police use. These studies have found that regular production passenger vehicles not specifically designed for police service have increased maintenance costs and frequent breakdowns resulting from the stress of police service. These findings have been endorsed by the National Fleet Managers Association and the National Police Fleet Managers Association. 1 Marked police squads are not used like normal passenger cars. Squads idle for long periods, use excessive electrical draws and must be capable of emergency operation and emergency breaking at a moment's notice. The current bid package allows for two transmission /axle configurations in the Ford police package. Both are badged (outside markings) as "Police Interceptor ". In studies for 2003 by the Michigan State Police, Ford police packages tested with slower acceleration than the current Dodge and Chevrolet police packages. Hopkins continues to purchase the Ford package designed for city departments. The Ford dealer holding the current state contract will not allow police departments to purchase non - certified vehicles for police squad use from their bid process due to liability. Departments can purchase midsize vehicles for light duty use, but if the vehicle is intended for police squad use the dealer will refuse the sale, ' National Law Enforcement and Technology Center bulletin, Michigan State Police Tests 2004 Patrol Vehicles, http: ll www. nlectc .orgltestinglvehicles.html • • Police certified Ford Crown Victorias on state bid for 2003 cost $21,107.00. The pricing of the 2004 bid has not been determined but is expected to increase over 2003. The 2004 MSRP for a Ford Taurus ranges between $19,830.00 and $23,475.00. Deciding Factors Size: Passenger compartment and trunk space are important factors in selecting a vehicle to be used as a police squad. Officers use the squad as their personal office and driving platform for 12 -hour shifts. Two additional radio heads, a siren controller, emergency light controller, a two -part radar unit, a keyboard and screen for their mobile computer, and a mount and long gun must accompany the officer into the front section of the squad. A protective cage separates the front and rear seats. This cage limits the ability of the front seat to extend fully back and reduces the rear passenger leg room. The interior size of the Taurus midsize car is listed at 104.4 cubic feet. A Ford Crown Victoria lists an interior size of 112 cubic feet 2 Ford Vehicles, Dimensions and Capacities 2003, http: / /www.fordvehicles.com 3 Police Fleet Manager Magazine, Spring 2003, What's in the Trunk ?,http: / /www.pfmmag. cow/ Spring2003 /spring2003whatsinthetrunk.htm • The plastic rear seats and protective cages are interchangeable and re -used with new squads. Plastic seats reduce cleaning costs over cloth or vinyl for spilled blood and bodily fluids. No manufacture markets a plastic seat for a mid size passenger vehicle. • Current cages could not be modified for use in mid size cars. A custom cage would cost $350.00 per squad and limit floor space for prisoner's feet to 8 inches forcing them to sit sideways. This would be impossible to accomplish with a full sized adult in handcuffs while maintaining seat belt protection during transport. A large number of items are carried in the trunk of police squads; so many that the spare tires have been removed and placed in storage. A survey of National Police Fleet Managers found that nationwide marked squads carry an average of 250 pounds of gear in the trunks of their vehicles and would carry up to 400 pounds if space were available. Trunks of midsize passenger vehicles average 17.0 cubic feet. The Ford Crown Victoria lists 20.6 cubic feet of trunk space • Page 2 • A Ford Taurus does not have a rear shelf in the trunk for mounting electrical equipment. A custom installation must be made. • • • The interior of a Hopkins Squad -14 separate items listed on daily supply and 4 additional electrical boxes mounted on the rear deck. Spare tires are kept at the Station due to space limitations. Electrical: Both Ford and Chevy provide police package vehicles with heavy duty alternators and pre -wired electrical harnesses for emergency lights and radios. Electrical draws on midsize passenger vehicles used in light duty police applications, such as the vehicles used by our Investigators, have shown increased installation charges and maintenance costs. Our Geo Tracker, with no police package electrical system, has had several batteries and alternator replacements and repairs. So far for 2003 the Geo has logged $3,275.00 in repair charges. Fuel Economy: Midsize vehicles do realize higher fuel economy than full -size cars. A Ford Taurus operated by the Investigation Sergeant averaged 14.59 mpg over the last 12 months. The promised average supplied by Ford is 23.0 mpg for city driving. Our full -size squads promise 16 mpg in testing, but our performance standard shows we average 4.84 mpg in Hopkins. Our mechanics and operators fee] this unusually low number is due to the excessive idle time now practiced. Medical and computer equipment does not function below 32 degrees or above 100 degrees. To maintain a moderate interior temperature, the squads are kept idling the entire time the officer is on duty to ensure equipment operates when necessary in an emergency. As a comparison, the Geo Tracker, used by Parking Enforcement, sees similar idle time. Its promised fuel economy with the 1.6 liter 4- cylinder engine is 23 mpg city. Our Geo Tracker averaged only 10.49 mpg during the last 12 months. It is reasonable to assume that a Ford Taurus promising 23 mpg would • Page 3 • experience averages closer to the 10mpg seen in the Geo Tracker during similar usage. Maintenance: The Mound, MN Police Department experimented with using the Ford Taurus for police squads in 1999. The Department reported the downtime for maintenance issues and costs exceeded the savings from the original purchase. The National Association of Fleet Managers agrees and cited the following in a August 1995 study of using midsize passenger vehicles for police squads: • Page 4 • Accident repair costs for midsize cars average 40% more than full - size vehicles. • Midsize vehicles have grater repair costs and downtime than full - size vehicles. This is caused primarily by higher engine heat and closer proximity of parts to heat generating elements. Heavy 24- hour -a -day use exceeded design specification of engine mounts and transmissions. (Mound PD replaced 3 transmissions in one Taurus in one year during their test. Each Taurus suffered at least one transmission failure). • Midsize vehicles do not have enough interior space for police equipment requiring increased cost for vehicle setup over full -size cars. • Re- training of users is necessary to meet certification for emergency operation. • Resale value of the midsize vehicle is less than the full -size police package vehicle. Summary: Police squads have a direct impact on the operational effectiveness of police service in a community like Hopkins. A police squad is more than just a means of transportation; it provides protection, a safe working environment and a mobile office for the officers. This contributes to operational effectiveness and the basic protection mission of the Hopkins Police Department. Midsize passenger cars are not designed to perform this critical function. Cost savings realized by higher mpg averages and initial purchase costs will be more than offset by installation and maintenance costs. 4 Report from the National Association of Fleet Managers Conference, August 1995, 11 reasons why smaller vehicles don't work in police fleets, Law Enforcement Conference Group.