06-08-04 Regular
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Meeting
June 8, 2004
The meeting was called to order by Mayor Pro Tempore Sandahl at 6:30 p.m.
Members Present:
Martin Kirsch, Mayor (arrived 6:47); Sue Sandahl; Susan Rosenberg; John
Enger; and Gertrude Ulrich.
Samantha Orduno, City Manager; Steve Devich, Administrative Services
Director; Mike Eastling, Public Works Director; Bruce Palmborg,
Community Development Director; Jim Topitzhofer, Recreation Services
Director; Chris Regis, Finance Manager; Bruce Nordquist, Housing and
Redevelopment Manager; John Stark, Community Development Assistant
Director; Cheryl Krumholz, Recording Secretary; and Corrine Thomson,
City Attorney.
Mayor Pro Tempore Sandahl announced Mayor Kirsch would be arriving late to the
meeting.
Staff Present:
No one was registered to speak.
Mayor Pro Tempore Sandahl led the audience in the Pledge of Allegiance.
M/Ulrich, S/Rosenberg to approve the minutes of Reoular City Council Meetino of Mav 25.
2004.
Motion carried 4-0.
Council Meeting Minutes
-2-
June 8, 2004
Item #1
AS
Mayor Pro Tempore Sandahl presented a proclamation designating June 6-12,2004 as
National Garden Week in Richfield to Garden Club members, Jeanette Lofstrom and Mary Olafson.
Item #2
Council Member Rosenberg presented a proclamation designating June 2004 as Gay,
Lesbian, Bisexual, Transgender Pride Celebration Month in Richfield to the Human Rights
Commission.
Item #3
Mark Olson, Human Rights Commission Chair, presented the annual Gene and Mary
Jacobsen Outstanding Citizen Award to Howard Bunce.
Item #4
Mark Olson, Human Rights Commission Chair, reviewed the commission's 2004 annual
report including goals and accomplishments.
The City Council thanked the commission for their efforts.
Item #5
Mayor Kirsch arrived at 6:45 p.m.
Tom Hodnefield, HLB Tautges Redpath, Ltd., presented a summary of the Comprehensive
Annual Financial Report (CAFR) which was previously reviewed by City management staff. He
described the three audit reports and summary of audit findings. He congratulated City staff,
especially the Finance Division, fur successfully completing the audit because of many accounting
changes related to GASB 34 and standards related to fraud.
Mr. Hodnefield reviewed the finding related to the State Statute requiring the acceptance of
restrictive grants and donations by City Council resolution.
\
Council Meeting Minutes
-3-
June 8, 2004
Council Member Enger asked about the $1.2 million transfer from the General Fund.
Mr. Hodnefield explained the accounting for compensatory absence liability and the transfer
to an internal fund.
Council Member Ulrich encouraged residents with questions regarding the City's finances
to review the CAFR because it is a well organized, valuable source of information.
The City Council accepted the CAFR and thanked the auditing firm for their work and
reminded the public that the auditors work for the City Council, not staff.
The City Council thanked Steve Devich, Administrative Services Director, and Chris Regis,
Finance Manager, for their efforts in preparing and monitoring the City's financial reports.
Item #6
Council Member Rosenberg announced the Richfield Beautiful Home and Garden Tour on
June 26 & 27. Maps will be on sale at the Community Center, City Hall and the municipal liquor
stores.
Council Member Ulrich discussed the recent renovation of Mt. Calvary Church.
Council Member Ulrich discussed the Richfield Chamber of Commerce newsletter related to
the generosity of businesses in the community.
Council Member Enger requested the City Council authorize the City Manager to inform M & I
Bank to override the City's policy and to cash his stale-dated paychecks. He apologized to the City
Council and the City of Richfield for not adhering to the Council Memo regarding the check-cashing
policy.
Council Member Rosenberg asked how many checks were stale and the timeframe.
Council Member Enger said 17 checks over a one-year timeframe.
Council Member Rosenberg asked Council Member Enger if the City Manager had spoken
with him several occasions regarding cashing the checks.
Council Member Enger said they had spoken a couple times.
Council Member Sandahl expressed concern regarding an element of fairness of making a
different policy for the City Council than for City employees.
Council Member Enger said there would be no problem with him in the future.
City Manager Orduno explained the policy is to charge $20 if a check is to be re-issued, but
no re-issuing needs to be done for Council Member Enger.
Council Member Rosenberg asked if a large amount of staff time was spent on this matter.
City Manager Orduno said yes, because it had not been an issue before.
Mayor Kirsch said the City Council cannot put themselves above the rest of staff and the
policy is universal.
City Manager Orduno clarified the policy applies to re-issued checks.
Council Meeting Minutes
-4-
June 8, 2004
Council Member Sandahl asked if this matter would come before the City Council if an
employee were in this situation.
City Manager Orduno said no, she would handle it administratively and there would be a
charge because of the staff time involved.
Council Member Ulrich stated this was a delicate situation and she originally supported
cashing the paychecks but, at that time, was not aware the number was 17 checks.
Mayor Kirsch asked about the Council Memo regarding the check cashing policy.
City Manager Orduno said Council Member Enger has acknowledged receipt of the memo.
M/Sandahl, S/Rosenberg to authorize the City Manaaer to override the 6-month check
cashina policy and notify the bankto cash Council Member Enaer's 17 stale-dated payroll checks and
impose a penalty for the staff time spent at the same fee as any other employee of $20 per check.
City Manager Orduno explained' City employees, as of August 1, 2004, will be required to
have direct deposit as permitted by the new State law passed this year. She suggested the City
Council could also require themselves to have direct deposit.
Council Member Enger stated no fee should be imposed because the checks are not re-
issued and he was not being treated fairly.
Council Member Enger said if the fee is to be assessed, he withdraws his request and will
seek legal advice.
Mayor Kirsch said a motion is on the table that needs action.
Motion carried 4-0. (Enger did not vote.)
Council Member Ulrich reported on the LMC/AMM annual meeting.
Council Member Ulrich reported on the Public Law Update seminar.
Item #7
City Manager Orduno reported on the House Research Department update regarding local
government aid (LGA) estimates for 2005. Richfield's reduction is approximately $900,000. A total of
$4.5 million has been cut in less than four years.
Item #8
M/Rosenberg, S/Sandahl to approve the aaenda.
Motion carried 5-0.
Item #9
A. Approved resolution authorizing issuance of third Educational Facilities Revenue Note
(Academy of Holy Angels Project), Series 2004, under MN Statutes, Sections 469.152
through 469.1651 as amended, to finance property for benefit of Academy of Holy Angels
S.R. No. 97
",
I
I
Council Meeting Minutes
-5-
June 8, 2004
RESOLUTION NO. 9472
RESOLUTION APPROVING AND AUTHORIZING THE ISSUANCE OF ITS
EDUCATIONAL FACILITIES REVENUE NOTE (ACADEMY OF HOLY ANGELS
PROJECT), SERIES 2004, UNDER MINNESOTA STATUTES, SECTIONS 469.152
THROUGH 469.1651, AS AMENDED, TO FINANCE PROPERTY FOR THE
BENEFIT OF ACADEMY OF HOLY ANGELS; APPROVING THE FORM AND
AUTHORIZING THE EXECUTION OF RELATED DOCUMENTS; AND PROVIDING
FOR THE SECURITY, RIGHTS AND REMEDIES OF THE OWNERS OF THE
NOTE
This resolution appears as Resolution No. 9472 in Resolution Book No. 75.
B. Approved resolution declaring costs to be assessed and ordering preparation of assessment
roll for 2003 removal of diseased trees from private property and setting public hearing for
July 27,2004 S.R. No. 98
RESOLUTION NO. 9473
RESOLUTION DECLARING COSTS TO BE ASSESSED AND
ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR
REMOVAL OF DISEASED TREES FROM PRIVATE PROPERTY
FOR THE PERIOD OF JANUARY 1, 2003 TO DECEMBER 31, 2003
This resolution appears as Resolution No. 9473 in Resolution Book No. 75.
C. Approved resolutions declaring costs to be assessed and ordering preparation of
assessment roll for 2003 Lyndale/HUB/Nicollet maintenance, and proposing similar
assessment process for 2005 and setting public hearing for July 27,2004 S.R. No.
99
RESOLUTION NO. 9474
RESOLUTION PROPOSING TO SPECIALLY ASSESS FOR THE COSTS
OF CURRENT SERVICES PROVIDED WITHIN THE
L YNDALE/HUB/NICOLLET (LHN) PROJECT AREA FOR THE PERIOD
JANUARY 1, 2005 THROUGH DECEMBER 31, 2005.
RESOLUTION NO. 9475
RESOLUTION DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF
PROPOSED ASSESSMENT FOR
L YNDALE/HUB1NICOLLET (LHN) MAINTENANCE FOR THE PERIOD
JANUARY 1, 2003 THROUGH DECEMBER 31, 2003
These resolutions appear as Resolution No.'s 9474 and 9475 in Resolution Book No. 75.
D. Approved resolutions declaring costs to be assessed and ordering preparation of
assessment roll for 2003 77th Street maintenance district, and proposing similar
assessment process for 2005 and setting public hearing for July 27,2004 S.R. No.
100
Council Meeting Minutes
-6-
June 8, 2004
RESOLUTION NO. 9476
RESOLUTION PROPOSING TO SPECIALLY ASSESS FOR THE COSTS OF CURRENT
SERVICES PROVIDED WITHIN THE 77TH STREET PROJECT AREA FOR THE PERIOD
JANUARY 1, 2005 THROUGH DECEMBER 31, 2005
RESOLUTION NO. 9477
RESOLUTION DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF
PROPOSED ASSESSMENT FOR 77TH STREET MAINTENANCE FOR THE PERIOD
JANUARY 1, 2003 THROUGH DECEMBER 31, 2003
These resolutions appear as Resolution No.'s 9476 and 9477 in Resolution Book No. 75.
M/Sandahl, S/Rosenberg to approve the Consent Calendar.
Motion carried 5-0.
Item #10
None.
Item #11
Council Member Rosenberg presented Staff Report No. 101 regarding consideration of
Easement and Maintenance Agreements contingent upon approval of a City Bella final plat
resolution and a public hearing regarding a resolution approving a final plat for City Bella
redevelopment project by Gramercy Corporation.
City Manager Orduno made the following correction in the resolution granting final approval
of a subdivision for Gramercy Corporation and City Bella - NO.2 should read "final" not
"preliminary" approval.
M/Rosenberg, S/Sandahl to close the public hearinQ.
Motion carried 5-0.
M/Rosenberg, S/Sandahl to approve the Easement and Maintenance AQreements
continQent upon approval of the City Bella final plat resolution.
Motion carried 5-0.
M/Rosenberg, S/Kirsch that the followinQ resolution be adopted. that it be spread in the
resolution book and that it be made part of these minutes:
RESOLUTION NO. 9478
RESOLUTION GRANTING FINAL APPROVAL OF A SUBDIVISION FOR GRAMERCY
CORPORATION AND CITY BELLA
Council Meeting Minutes
-7-
June 8, 2004
Motion carried 5-0. This resolution appears as Resolution No. 9478 in Resolution Book No.
75.
Item #12
Council Member Sandahl presented Staff Report No. 102 regarding a resolution accepting
Metropolitan Livable Communities Grant in the amount of $500,000 for City Bella and a resolution
authorizing Richfield HRA to distribute and administer grant funds, approving an agreement
between HRA and developer and approving amendments to Business Subsidy Agreement
because of addition of grant funds.
M/Sandahl, S/Rosenberg that the followino resolutions be adopted. that they be spread in
the resolution book and that they be made part of these minutes:
RESOLUTION NO. 9479
RESOLUTION ACCEPTING METROPOLITAN
LIVABLE COMMUNITIES GRANT IN THE
AMOUNT OF $500,000
RESOLUTION NO. 9480
RESOLUTION AUTHORIZING RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY
("HRA") TO DISTRIBUTE AND ADMINISTER GRANT FUNDS, APPROVING AGREEMENT
BETWEEN HRA AND DEVELOPER, AND APPROVING THE AMENDMENTS TO THE
BUSINESS SUBSIDY AGREEMENT BETWEEN THE HRA AND THE DEVELOPER.
Council Member Enger stated when the grant was proposed to the City Council, there was
no discussion of the funds being connected to a skyway. In reality, the grant is to build the skyway
which will benefit only the residents in the towers. If the City accepts the grant, it must be used for
plaza improvements because he will not support the resolution if the funds are used for a skyway.
If the skyway is built, maintenance is the responsibility of the two buildings.
City Manager Orduno stated the City would not maintain the skyway.
Council Member Rosenberg said other high-rise occupants would use the skyway, not just
City Bella residents, because Lyndale Avenue is such a busy street to cross.
Council Member Enger said the intersection is controlled by semaphores.
Council Member Sandahl stated the skyway can also be used by Oaks on Pleasant and
The Pines residents.
Council Member Enger asked about the proposed restaurants and businesses on the first
floor of City Bella.
City Manager Orduno said there are no restaurants.
Council Meeting Minutes
-8-
June 8, 2004
Housing and Redevelopment Manager Nordquist reviewed the proposed businesses. He
added that the developer continues to search for a quicker-service restaurant.
Council Member Ulrich stated that she supports a skyway because she is a promoter of the
pedestrian way and Lyndale Avenue is not comfortable to cross even though there are lights.
Mayor Kirsch added that crossing is also difficult in the wintertime for seniors.
Council Member Enger stated that when the public hearing took place, there were a
number of people who vehemently objected to the grant being used for a skyway and they were
told it would not be used that way.
City Manager Orduno explained the funds are from the Met Council designated for plaza
improvements so cannot be used in any other way. The developer would pay for skyway
connections.
Council Member Sandahl said access for Wood Lake Nature Center is also part of the
design.
Council Member Enger stated this grant gives the developer $500,000 for the plaza and
then they'll build the skyway.
Council Member Ulrich said the grant application went through an extensive assessment by
the Met Council and the funds cannot be used in any other way than designated by them.
Mayor Kirsch stated many other cities were vying for funds.
Housing and Redevelopment Manager Nordquist said the grant process was very
competitive and was awarded based upon the merit of supporting community connections.
City Manager Orduno explained the plaza is not the developer's but the public's.
Housing and Redevelopment Manager Nordquist explained the grant application was
approved by the City Council by resolution.
Council Member Sandahl stated it was clear from the Met Council that the funds are for
plaza improvements and no City funds will be used for the skyway.
Council Member Enger requested the City Council invite Lou Stocco, Gramercy
Corporation, to address the City Council.
Council Member Enger asked Mr. Stocco about the initial cost of the plaza; he recalls it was
$1.2 million.
Mr. Stocco estimated $1 + million.
City Manager Orduno explained the original plaza was cut back so the grant allows
additional improvements. The skyway and plaza are two separate issues.
Council Member Engerrequested figures from the initial proposal, the way tax increment
financing (TIF) was arranged for each part of the proposal, when the plaza was reduced and how it
will be enhanced.
Council Member Enger said he sees the grant as a diversion of funds.
Council Meeting Minutes
-9-
June 8, 2004
City Manager Orduno stated the skyway was never listed on eligible list for TIF.
Council Member Ulrich called the question.
Motion carried 4-1. (Enger opposed.) These resolutions appear as Resolution No.'s 9479
and 9480 in Resolution Book No. 75.
Item #13
Council Member Enger presented Staff Report NO.1 03 regarding clarification of a
conditional use permit for Kensington Park redevelopment project.
City Attorney Thomson explained the history related to the 115 underground parking
spaces and the need for the City Council to clarify the intent to be consistent with the history.
Council Member Enger asked about the calculation used for the spaces for the
condominiums.
Community Development Assistant Director Stark explained the planned unit development
(PUD) has no structured set of ratios because it is a shared, mixed-use area.
Council Member Enger reviewed the parking components and asked how 115 was
determined.
Community Development Assistant Director Stark explained 115 spaces was the original
number for the 96 unit condominiums and this was approved by the Planning Commission. The
text of the PUD says 126 spaces, but the map states 115.
Council Member Enger asked about the parking at Gramercy because there appeared to be
too few.
City Manager Orduno stated the Gramercy discussions were not related to enough spaces,
but rather the kind of parking. Mixed use developments result in different traffic flows and
pedestrian ways require some adjustments.
Community Development Assistant Director Stark stated each condo unit has its own
parking space and two bedroom and two plus bedroom units have an option to buy additional
space.
Council Member Sandahl said the ramp is built and additional underground parking cannot
be added at this time.
Council Member Enger asked if the City anticipates the condos to use surface parking.
Community Development Assistant Director Stark said it is anticipated that the condos will
use surface parking for guests at night, but not during the day. A parking study was conducted and
it determined the underground parking adequate.
MtRosenberg, StEnger to clarifv that the Conditional Use Permit for the Kensinqton Park
was intended to include 115 underqround parkinq spaces.
Council Meeting Minutes
-10-
June 8, 2004
Motion carried 5-0.
Item #14
Council Member Ulrich presented Staff Report No. 104 regarding consideration of
accepting plans and specifications and authorize advertising for bids for reconstruction and
securing construction engineering services for improvements on 7600 block of Lyndale Avenue.
Public Works Director Eastling reviewed the detour route.
M/Ulrich, S/Rosenberg to accept the plans and specifications for the reconstruction of the
7600 block of Lyndale Avenue. and authorize advertisement for bids to reconstruct the 7600 block
of Lyndale Avenue and to secure construction enqineerinq services for the proiect.
Motion carried 5-0.
Item #15
M/Rosenberg, S/Sandahl that the followinq claims and payrolls be approved:
RICHFIELD BANK & TRUST CO.
AlP Checks: 132225 - 132510
PAYROLL 38616 - 38728
TOTAL
$ 786,569.30
$ 441,627.54
$ 1,228,196.84
Motion carried 5-0.
Council Member Ulrich requested the Richfield and Bloomington Chamber of Commerce
after hours event with legislators on June 24 be posted as a Special City Council meeting.
The City Council recessed at 8:25 p.m.
Item #16
The City Council reconvened at 8:30 p.m.
City Manager Orduno stated tonight's Worksession was called by Council Member Enger
but he left after the Regular City Council meeting due to illness. She said Council direction to staff
is requested to continue the family-friendly marketing campaign and begin forming the coordinating
committee. This campaign is an on-going, long-term commitment and participation should be as
inclusive as possible.
Council Meeting Minutes
-11-
June 8, 2004
Council Member Rosenberg suggested the Richfield Community Council, churches and
Vision 2020 be included.
City Manager Orduno said the initiation of the Coordinating Committee will be returned to
the City Council for formal approval.
Mayor Kirsch asked who attended the conference as the City's Team.
City Manager Orduno stated Council Members Sandahl and Rosenberg, Best Buy
representative, Chamber of Commerce President and Chair, School District Superintendent, Public
Safety Director, Recreation Services Director, Community Development Director and City
Manager.
Council Member Ulrich suggested RAMA be included and that the committee work with
programs already in place.
City Manager Orduno said the Chief Coordinator needs to be from the City Council because
it's important to have City Council leadership.
Community Development Director Palmborg suggested different ethnic groups be included.
Recreation Services Director Topitzhofer stated the challenge will be budget constraints.
Partnerships and creativity are needed.
Edwina Garcia, HSSC representative, thanked the City Council for this initiative and
encouraged inclusiveness.
Council Member Rosenberg said Richfield could be known as the front porch community.
The City Council directed the City Manager to initiate the establishment of a Family-Friendly
Coordinating Committee with Council Member Sandahl as leader and Council Member Rosenberg
as co-leader.
Item #17
Date A::::: C::::i1 :~e:::as adjourned by unanimous consent at 841 p
~ ~
,/ / ,1 ~-
6h~~umn lz
Recording Secretary