10-24-06 Regular
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Meeting
October 24, 2006
The meeting was called to order by Mayor Kirsch at 6:30 p.m.
Members Present:
Martin Kirsch, Mayor; Sue Sandahl; Susan Rosenberg; Fred Wroge; and
Bill Kilian.
Staff Present:
Steve Devich, City Manager; Mike Eastling, Public Works Director; Dan
Scott, Public Safety Director; Bruce Palmborg, Community Development
Director; Pat Smith, Community Development Manager; Kristin Asher,
Assistant City Engineer; Mark Hall, Fleet/Park Maintenance Supervisor;
Chris Regis, Finance Manager; Cheryl Krumholz, Recording Secretary;
and Corrine Thomson, City Attorney.
No one was registered to speak.
Mayor Kirsch led the audience in the Pledge of Allegiance.
M/Kilian, SlWroge to approve the minutes of (1) Special City Council MeetinQ of October 4.
2006: (2) Special City Council Worksesson of October 10. 2006; and (3) ReQular City Council
MeetinQ of October 10. 2006.
Motion carried 5-0.
Council Meeting Minutes
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October 24, 2006
Item #1
Council Member Sandahl introduced Melissa Madison and Shirley Carlson-Bancroft, 494
Commuter Services representatives.
Ms. Madison and Ms. Carlson-Bancroft discussed the commuter challenge program and
announced the two winning participants in Richfield. They also presented the City of Richfield with
the second place award for the 2006 Commuter Challenge Bicycle Commuter Achievement from
494 Commuter Services.
Item #2
Council Member Wroge acknowledged the Richfield Ice Arena staff for their positive efforts
as host of a recent figure skating event.
Council Member Wroge encouraged the residents to vote in the November 7 election to set
the course for the City Council to follow.
Council Member Rosenberg acknowledged the one-year anniversary of the Loaves &
Fishes program in Richfield, with Assumption Church as host.
Council Member Rosenberg acknowledged the four-year anniversary of Senator Paul
Wellstone's death.
Public Safety Director Scott reported on the September 2006 property maintenance
inspection program.
Council Member Rosenberg said increased discussions about the program appear to result
in reduced violation.
Public Safety Director Scott added that education.and the community working together
make a difference.
Item #3
MlWroge, S/Sandahl to approve the aQenda.
Motion carried 5-0.
Item #4
A. Approved first reading of amendment to City Administrative Code Chapter III, Subsection
310.33, Subdivision 9 describing terminal vacation and schedule second reading for
November 14, 2006 S.R. No. 211
Council Meeting Minutes
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October 24, 2006
B. Approved first reading of ordinance relating to connections and discharges to stormwater
system and schedule second reading for November 14,2006 S.R. No. 212
C. Approved resolution granting subdivision waiver for 6700 Pleasant Avenue to create two
single-family lots S.R. No. 213
RESOLUTION NO. 9836
RESOLUTION AUTHORIZING A SUBDIVISION WAIVER
6700 PLEASANT AVENUE
This resolution appears as Resolution No. 9836.
D. Approved resolutions levying special assessment for nuisance abatement and weed
destruction against certain property owners S.R. No. 214
RESOLUTION NO. 9837
RESOLUTION LEVYING SPECIAL ASSESSMENT
FOR WEED DESTRUCTION
RESOLUTION NO. 9838
RESOLUTION LEVYING SPECIAL ASSESSMENT
FOR NUISANCE ABATEMENT AND FALSE ALARM FEES
These resolutions appear as Resolution No.'s 9837 and 9838.
E. Approved renewal of Chief's Towing, Inc. contract for Public Safety towing services, with
6.4% price increase in all service categories, for December 1, 2006 through November 30,
2007 S.R. No. 215
M/Sandahl, S/Kilian to approve the Consent Calendar.
Motion carried 5-0.
Item #5
None.
Item #6
Council Member Wroge presented Staff Report No. 216.
MlWroge, S/Kilian to approve a reauest for a new taxi license for Ecuadorian Express. 2851
Central Avenue NE. Minneapolis. and picking UP fares in Richfield.
Motion carried 5-0.
Council Meeting Minutes
Item #7
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October 24, 2006
,
\
Council Member Rosenberg presented Staff Report No. 217.
M/Rosenberg, S/Sandahl to close the public hearina.
Motion carried 5-0.
M/Rosenberg, S/Sandahl that this constitutes the second readina of Bill No. 2006-16 to
amend zonina district boundaries and rezone certain properties within the 1-494 Corridor as Mixed-
Use Neiahborhood and Mixed-Use Community. that it be published in the official newspaper and
that it be made part of these minutes.
Item #8
Motion carried 5-0.
Council Member Wroge presented Staff Report No. 218.
M/Rosenberg, S/Kilian to close the public hearina.
Motion carried 5-0.
MlWroge, S/Sandahl that the followina resolution be adopted and that it be made part of
these minutes:
Item #9
RESOLUTION NO. 9839
RESOLUTION GRANTING FINAL APPROVAL OF
A SUBDIVISION OF 6444 PORTLAND AVENUE SOUTH.
Motion carried 5-0. This resolution appears as Resolution No. 9839.
Council MemberWroge presented Staff Report No. 219.
MlWroge, S/Kilian that the followina resolution be adopted and that it be made part of these
minutes:
Council Meeting Minutes
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October 24, 2006
RESOLUTION NO. 9840
RESOLUTION PROVIDING FOR THE SALE OF
$2,500,000 GENERAL OBLIGATION STORM SEWER
REVENUE BONDS, SERIES 2006B
Council Member Wroge expressed concern regarding the inclusion of $600,000 for the new
maintenance facility in the bond since he believed the City had the funds available without much
borrowing. He said he did not support this portion of the bonding resolution.
City Manager Devich explained the break out of enterprise operating expenses for the use
of garage space. There are a variety of funding sources for the garage.
City Manager Devich explained the need to preserve the storm sewer fund balance. The
cost difference in the garage would be made up through bonding if the City Council decides to build
the facility.
Council Member Kilian asked about needing to sell bonds this year and the limit allowed.
Finance Manager Regis discussed the storm sewer cash flow.
City Manager Devich discussed the key financial strategies previously considered by the
City Council and the $10 million annual cap. He said the bonds would result in a smaller debt
service obligation, resulting in a net gain.
Council Member Sandahl stated it made sense to do all the projects covered in the bond
sale, including the maintenance facility since part of the storm water operation shares the building.
The storm water fund balance needs to be maintained.
Council Member Wroge said this was the first time he had heard about borrowing funds
toward the new garage. He asked about bonding to the maximum amount so there are less
problems next year.
City Manager Devich reviewed the foreseeable storm water projects that were determined
as prudent and reasonable to be in the bond.
City Manager Devich said he would not recommend more bond sale funds but other projects
than what are listed in the resolution could be necessary.
Council Member Wroge said money should not be spent ahead of time. He asked about the
Augsburg Pond lift station.
Public Works Director Eastling explained that heavy rainfalls cause flooding with trees being
lost and the proposed project would be a long-term investment to keep the water level.
Council Member Wroge said this Augsburg Park project could wait because it's not flooding
houses and there may be other projects needing to be done. The City should use the funds on
hand so there is less bonding.
Mayor Kirsch asked about the 73rd Street and First Avenue Storm Sewer project.
Public Works Director Eastling replied that a great deal of planning is needed.
Council Member Kilian stated that the proposed projects come before the City Council for
consideration. If there is less bonding, projects are moved into the future. The proposed bonding is
a way to get them done faster.
Council Meeting Minutes
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October 24, 2006
City Manager Devich said there is approximately $8.5 million remaining before the bonding
cap is met.
Finance Manager Regis explained the thought process to target this bonding amount rather
than the maximum; including the fit into debt service so there is no strain on cash flow.
Council Member Kilian said if there is a less amount bonded, there will be a need to go into
fund balance.
City Manager Devich explained the reasons for not stripping fund balance since bonding
agencies look at this for bond rating and there may also be unexpected costs needing to be
covered. He said he believes this bond level is a good one to get the maintenance facility and
projects completed because it allows flexibility.
Council Member Rosenberg stated this bond made good fiscal sense, did not use fund
balance, and maintained the City's bond rating.
Motion carried 4-1. (Wroge opposed.) This resolution appears as Resolution No. 9840.
Item #10
Mayor Kirsch stated that he was abstaining from voting on this item because he is President
of Mt. Calvary Church.
Council Member Kilian presented Staff Report No. 220.
M/Kilian, S/Sandahl that thefollowinQ resolution be adopted and that it be made part of
these minutes:
RESOLUTION NO. 9841
APPROVING DONATION OF PROPERTY
FOR STREET RECONSTRUCTION AND OTHER PUBLIC PURPOSES
Council Member Sandahl commended City staff, Ryan Companies US Inc., and Mt. Calvary
for working together to make this a winning situation.
Council Member Wroge questioned the financial responsibilities of the City and Ryan.
Community Development Manager Smith replied that Ryan is not reimbursed for their
expenses. He also explained the 429 Special Assessment Bonds.
Roll call vote. Motion carried 4-0. (Kirsch abstained.) This resolution appears as
Resolution No. 9841.
Item #11
Council Meeting Minutes
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October 24, 2006
Council Member Sandahl presented Staff Report No. 221.
M/Sandahl, S/Kilian that the followinQ resolution be adopted and that it be made part of
these minutes:
RESOLUTION NO. 9842
RESOLUTION ESTABLISHING JUST COMPENSATION AND AUTHORIZING PURCHASE OF
REAL PROPERTY, PERMANENT SIDEWALK AND UTILITY EASEMENTS, AND TEMPORARY
CONSTRUCTION EASEMENTS LOCATED AT 6600 PORTLAND AVENUE, 6600 OAKLAND
AVENUE, AND 601 EAST 66TH STREET (66TH STREET AND PORTLAND AVENUE
INTERSECTION IMPROVEMENT PROJECT)
Council Member Wroge asked about the ability of T & T Automotive to stay in business with
this property taking.
Public Works Director Eastling reviewed the appraisal process, including the requirement to
follow the Uniform Relocation Act because of the use of federal funds.
City AttorneyThomson stated the appraiser is only looking at exactly the land needed and
the value of the rights being acquired. The property owner has expressed to the City an interest in
a land swap but that is outside the context of the appraiser. Negotiations will take in the land swap
possibility if it is determined to be feasible and prudent to come before the City Council for approval.
If there is a loss of going concern, a business valuation expert will make that determination.
Council Member Kilian said the owner can use the money as he chooses.
City Attorney Thomson stated if the owner chooses to stay in business, that was another
issue. This is beginning the process and all concerns raised by property owners will be considered.
Motion carried 5-0. This resolution appears as Resolution No. 9842.
Item #12
Council M~mber Kilian presented Staff Report No. 222.
M/Kilian, S/Sandahl that the followinQ resolution be adopted and that it be made part of
these minutes:
RESOLUTION NO. 9843
RESOLUTION APPROVING FIRST AMENDMENT TO
PUBLIC IMPROVEMENTS AND SPECIAL ASSESSMENTS AGREEMENT
Council Member Wroge asked about Ryan's public improvements and special assessment
contribution to the intersection in the first amendment being back to the same amount as in the
original contract.
City Attorney Thomson explained the development contract is with Ryan and the HRA. The
amendment removes the City's obligation to pay for storm water pond improvements and
decreases Ryan's special assessment obligation.
Council Meeting Minutes
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October 24, 2006
Council Member Wroge asked about putting a minimum/maximum of 20% for Ryan's
responsibility of the special assessment and how a difference is paid.
City Attorney Thomson explained at least 20% is secured by the special assessment
obligation which must be met or the 429 bonds cannot be issued.
Molly Carson, Ryan Companies US, Inc. representative, provided an update on the Cedar
Point Commons project.
City Attorney Thomson said it is hopeful that all properties will be closed and transferred to
Ryan by November 14, 2006. .
Motion carried 5-0. This resolution appears as Resolution No. 9843.
Item #13
Council Member Sandahl presented Staff Report No. 223.
Council Member Sandahl asked about the City paying the closing costs/recording fees/deed
tax and the transfer fee.
City Attorney Thomson stated the acquiring authority pays the fees. She continued the
purchase agreement will include the legal description. The seller's attorney also requested the
immovable fixtures attached to the real estate be sold on an "as is" basis which is not a material
change to the agreement.
Council Member Kilian asked about the length of time the business could operate after the
purchase.
Public Works Director.Eastling stated through March 2008.
City Attorney Thomson explained the purchase agreement includes a lease back.
Council Member Wroge asked Mr. Mooney, owner of BP Amoco, if he was relocating to
Richfield.
Jack Mooney replied that he did not wish to make that public at this time.
Council Member Rosenberg said it appears Mr. Mooney is getting what he wants and
worked with staff to get past the discomfort of the initial offer. She added this is another example of
Richfield trying to do the best.for businesses.
Mr. Mooney said staff was honest and open to having the situation go as smoothly as
possible. He said purchase agreement has been worked out satisfactorily.
Mayor Kirsch credited Mr. Mooney and staff for the good work.
M/Sandahl, S/Kilian to authorize the Mayor and City ManaQer to execute the proposed
Purchase AQreement between the City of Richfield and Jack Mooney for Mooney Properties. LLC
for the acquisition of the property located at 6545 Portland Avenue.
Council Meeting Minutes
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October 24, 2006
Motion carried 5-0.
Item #14
Council Member Rosenberg presented Staff Report No. 224.
Public Works Director Eastling said the bid opening process is targeted for February 2007
and numbers are a gross estimate until then. Preliminary design options should be completed by
the end of November.
Nancy Schultz, SEH representative, said the building is at maximum square footage for the
site so multi-levels are being considered. She reviewed the budget worksheet and Options 1-4.
Council Member Sandahl questioned if the proposed inside storage includes all the police
cars.
Public Works Director Eastling replied no police cars are inside exceptthe emergency
communication van and SWAT vehicle. However, the SWAT may more likely be stored at the City
Hall site for security reasons.
Ms. Schultz added the per square footage rate for storage is less at the garage than at City
Hall.
Public Works Director Eastling discussed the warm storage area.
Council Member Wroge asked about a building that needs warm environment in one part
where staff works with the rest of the building as a cold environment.
Ms. Schultz said the lower level conditions are as cold as can be handled.
Council Member Wroge expressed his concern that the project is getting legs and more
costly. He suggested a study to review an alternative to build the new garage using the Gleason
Mortuary site to move the administrative staff offices so that site is available for redevelopment. He
said he's worried a building is trying to fit on too small a property.
Public Works Director Eastling said the least expensive building is a spread out, one story
but the City's site is trying to accommodate a more compact site.
Council Member Kilian said a study mode means nothing is done for a while. He asked the
value of the current garage site.
City Manager Devich replied approximately $1.5 million, including both sides of 77th Street.
Council Member Kilian asked about the tax base if the pro'posed site was sold to a
developer.
City Attorney Thomson stated that was difficult to determine because the City still has MAC
issues finalized.
Council Member Kilian stated it appears the current garage site is marketable but the
proposed site is not. He added there is anticipated to be some synergy with some sharing of
MnDOT services at the proposed site.
Council Meeting Minutes
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October 24, 2006
Council Member Sandahl stated she supported the proposed site with the price range
options, including accommodating .additional needs that are more costly, because there is no where
else to build.
Mayor Kirsch expressed support for the proposed site and the sharing with MnDOT.
Ms. Schultz suggested bid alternates be prepared with the preferred options.
Council Member Rosenberg expressed support for the proposed site. The Gleason
Mortuary site could be redeveloped for a higher use.
Council Member Kilian expressed support for Option 2 or 3 because potential park space
becomes available. Options 1 and 4 are out of his comfort zone.
Ms. Schultz said Option 4 is a full lower level. Option 3 is a half basement. Option 2 is no
lower level. Option 1 is the original design.
Public Works Director Eastling said there is some diminishing return for the site if there is a
full basement.
Council Member Sandahl stated she was leaning toward Option 3 because of the possibility
of additional parkland at Taft Park. She said Option 2 was also acceptable.
Council Member Rosenberg concurred that Options 2 and 3 were acceptable and bid
alternatives should be prepared.
Mayor Kirsch agreed with Options 2 and 3 since they clean up the material storage area at
Taft Park which could provide additional recreational uses.
Council Member Sandahl asked if there was space at the new garage to store the City
Council's parade float.
Public Works Director Eastling said cold storage was available.
Council Member Wroge asked about the impact of the City's use if the roadway closed by
Taft Park.
Public Works Director Eastling said that road is in Minneapolis and they may not want to
invest in fixing it. Richfield Parkway is a strong reason to vacate the road for other uses.
City Attorney Thomson stated the roadway title needs to be investigated.
M/Rosenberg, SlWroge to direct staff to refine Options 2 and 3 desiQns for the proposed
maintenance facilitv with revised cost estimates, pursue a multiple stOry desiQn to provide for
Qrowth, and return to the City Council at the end of November 2006.
Public Works Director Eastling said financing options will also be provided.
Fleet/Park Maintenance Supervisor Hall discussed the equipment considerations for no heat
versus low heat in the garage.
Motion carried 5-0. '
"
Council Meeting Minutes
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October 24, 2006
Item #15
Mayor Kirsch presented Staff Report No. 225.
M/Kirsch, S/Sandahl to reappoint Joan Helmberaer as HRA Commissioner for a five year
term expirina October 2011.
Council Member Wroge said he'd like to see someone else be appointed because he
believes it's time for change, not because Ms. Heimberger hasn't done a good job.
Motion carried 4-1. (Wroge opposed.)
Item #16
None.
Item #17
M/Rosenberg, S/Sandahl that the followina claims and payrolls be approved:
u. S. BANK .
AlP Checks: 157304 - 154080
PAYROLL 34664 - 34995; 41205- 41210
TOTAL
$ 1,322,728.88
$ 456,101.02
$ 1,778,829.90
Motion carried 5-0.
The City Council meeting was adjourned by unanimous consent
Date Approved: November 14, 2006
~~ i,,,, -'~
Cheryl K umnolz
Recording Secretary