07-25-06 Worksession
CITY COUNCIL MINUTES
Richfield, Minnesota
Special Worksession
July 25,2006
The meeting was called to order by Mayor Kirsch at 5:31 p.m.
Members Present:
Members Absent:
Martin Kirsch, Mayor; Bill Kilian; Sue Sandahl; and Fred Wroge.
Susan Rosenberg.
Steven Devich, City Manager; Mike Eastling, Public Works Director; Kristen
Asher, Assistant City Engineer; Randy Hughes, Operations Superintendent;
Chris Regis, Finance Manager; Nancy Gibbs, City Clerk; John Holter, IT
Technician; and Cheryl Krumholz, Recording Secretary.
Staff Present:
Item #1
Public Works Director Eastling stated that at tonight's worksession, City staff is seeking
guidance from the City Council on the street maintenance program and funding options.
Assistant City Engineer Asher made a PowerPoint presentation on the street maintenance
program.
Public Works Director Eastling discussed the funding options.
City Manager Devich discussed the proposed shift in 2007 of the annual City Hall allotment
($200,000) of the franchise fees. At the end of 2006, $1 million will be in the City Hall fund which
should be adequate to begin the architectural portion of the project and bonding or other existing
funds could be used for the construction. The $200,000 could be used for street maintenance. If that
option is not used, the funds would be from a tax levy or street maintenance would be reduced.
Assistant City Engineer Asher stated State aid funds are available but other intersection
projects are considering the use of these funds.
Public Works Director Eastling said most cities have a street light utility fee but Richfield does
not have this financial support.
Public Works Director Eastling added that the options presented tonight are not tax
deductible.
City Manager Devich said the draft 2007 budget has the City Hall funds shifted to the street
maintenance program.
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July 25, 2006
Council Member Wroge asked about the tree replacement funding from the franchise fees.
City Manager Devich said that amount remains the same.
Council Member Wroge stated he was not in favor of increasing the franchise fee. Trees and
street maintenance funding should be part of the property tax levy. Taxes should be increased if
that's the only way to provide the funding. Citizens have certain expectations and should pay for it.
Council Member Wroge said the roadwork maintenance needs to be proven to him so more
isn't done than can be afforded.
Council Member Sandahl said it made sense to her to shift the City Hall portion of the
franchise fee to street maintenance. The City Hall funding has been started and streets need to be
maintained as in the past.
Mayor Kirsch said the streets can not begin to deteriorate because it will be more difficult to
manage. He said the funding formula should be changed.
Council Member Kilian stated he agreed the funds should go back into street maintenance.
He said he did not support placing these costs on property taxes but rather the use of other funding.
(powerpoint presentation materials are Clerk's File No. C-418.)
Item #2
Assistant City Engineer Asher made a PowerPoint presentation regarding Rain Gardens.
Public Works Director Eastling said it was feasible to change existing ponds but that is not
planned.
Assistant City Engineer Asher discussed the ISO 287 Rain Garden Project.
Council Member Wroge said the Academy of Holy Angels pond on 66th Street could be a
possible rain garden.
(powerPoint presentation materials are Clerk's File No. C-419.)
Item #3
Mayor Kirsch said City staff is seeking direction on when to schedule the worksession due to
several other matters needing discussion.
City Manager Devich reviewed the available dates for the worksession.
Council Member Sandahl suggested the September 26 City Council meeting.
Council Member Kilian asked what was trying to be accomplished at the worksession.
Council Member Wroge stated he wants people informed about the residential selling market
on the east side, and how much the airport is an issue so owners don't wait for a buyout. Realtors
are telling him homes on the east side can be sold.
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July 25, 2006
Council Member Kilian said there is a cost difference between a buyout and direct selling
because it depends on the area affected by development. The State is trying to get legislation
requiring disclosure of property as undesirable if located within a certain number of feet of an airport.
Council Member Wroge said he wanted the real estate professionals' thoughts. He said this is
no different than putting businesses on notice when there's a possible development in 20 years.
Council Member Kilian requested 6633-17th Avenue be used as a specific example to
determine price differences of selling before development of the area. He said the bigger the
difference, the more likely the owner would wait for a buyout.
Council Member Wroge referenced two reports related to an airport's impact on property
values. He requested City staff obtain those reports and provide copies to the City Council.
City Manager Devich clarified that the four realtors Council Member Wroge requested attend
the September 26 Worksession will be contacted, and requested the City Council provide to staff the
names of any other realtors that should be included.
Council Member Sandahl said realtors will need statistics to provide accurate discussions.
She said there has been a downturn in sales.
Council Member Wroge said he was told the sales are down due to interest rates not the
airport.
Council Member Kilian requested closing comparisons be provided for similar properties
adjacent.to the airport and other parts of the City.
Item #4
City Clerk Gibbs, with the assistance of IT Technician John Holter, demonstrated the
Automark voting equipment.
City Clerk Gibbs said the State of Minnesota does not have a requirement for election
equipment to be in other languages.
The meeting was adjourned by unanimous consent at 6:26 p.m.
Date Approved: August 8, 2006
c~~
Recording Secretary