08-24-04 Worksession
CITY COUNCIL MINUTES
Richfield, Minnesota
Special Worksession
August 24, 2004
The meeting was called to order by Mayor Kirsch at 7:35 p.m.
Council Members
Present:
Martin Kirsch, Mayor; Susan Rosenberg; Gertrude Ulrich; John Enger; and
Sue Sandahl.
Staff Present:
Samantha Orduno, City Manager; Steve Devich, Administrative Services
Director; Bruce Nordquist, Housing and Redevelopment Manager; Chris
Regis, Finance Manager; and Cheryl Krumholz.
Item #1
Housing and Redevelopment Manager Nordquist reviewed the approved development plan
and proposed modification design changes for the City Bella "Villa' on lake Shore Drive. Gramercy
Corporation is requesting a two-story condominium building with 16 units of one level living rather
than 13 two-story townhomes with stairs. The change is consistent with current market requests and
more affordability.
lou Stocco, Gramercy President, presented the new site plan with its improved handicapped
accessibility.
Council Member Sandahl asked what groups of individuals are interested in the new design,
especially since Richfield is trying to attract families.
Sally Bader, Caldwell Banker Burnet, explained the recent increased excitement for this
project, which is appealing to a diverse group of young professionals.
Council Member Enger asked about the difference in square footage in the current and
proposed design.
Mr. Stocco explained the units are a little smaller with a lower price.
Council Member Sandahl stated she liked the proposed design because it allows porches to
view the Wood lake Nature Center.
Mr. Stocco added the proposed design increases the number of units facing the nature center.
He added the "villa" is not age restrictive and a diverse age group is interested in the project.
Council Member Enger said it was good for the City to mix age groups and not be restrictive.
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August 24,2004
Mayor Kirsch said the proposed design looks better with a fountain and green space.
Housing and Redevelopment Manager Nordquist stated the proposed modifications could
return to the City Council for formal acceptance of the amendment or it could be handled
administratively by staff because the changes are modest.
The City Council consensus was for staff to proceed administratively.
Item #
City Manager Orduno distributed and reviewed electric and gas franchise fee calculations
based on a 3%, 5% and 10% increase. She said a substantial increase would need to be made to
make a difference.
City Manager Orduno stated that MnDOT prohibits use of their right-of-way for placing a
message board on Crosstown or 77th Street, but does not disallow use of the City's right-of-way.
Administrative Services Director Devich discussed the costs of converting the City Hall
message board to electronic - approximately $25,000 for both sides. He added the Richfield Tourism
Promotion Board (RTPB) could be asked to provide financial assistance again, since they did the first
time.
Council Member Enger said if the sign is electronic and scrolling, it would attract more
attention.
Council Member Rosenberg asked about safety issues for traffic.
City Manager Orduno stated a Fridley court case disallowed scrolling signs because of safety.
She added MnDOT restrictions include no scrolling.
Council Member Sandahl stated she has not heard of any traffic accidents related to the
electronic message signs at the HUB and previously at Richfield Bank and Trust.
Council Member Ulrich added that it did slow down traffic.
City Manager Orduno suggested the signage begin with converting the City Hall message
board and determine the success of the change and then consider other locations later.
Council Member Enger said a sign would be a good idea especially for Cedar Liquor, as part
of the redevelopment on Cedar Avenue and 66th Street.
City Manager Orduno stated an entrance sign to Richfield could include an electronic
message board.
The City Council consensus was to have staff prepare and provide information regarding
converting to an electronic message board at City Hall.
City Manager Orduno said the funds could be from RTPB and fund balance.
Mayor Kirsch added the signage could potentially bring in more revenue.
Council Member Sandahl stated a 10% increase in franchise fees would raise the fee to $.15
per meter per residence which would probably not affect most residential budgets. She expressed
support for a gradual increase to reflect costs rather than a drastic increase. The 10% is not a huge
increase but does generate some additional funds.
Mayor Kirsch agreed the increase fits with the water and sewer rate increase with no spiking
of rates.
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August 24, 2004
City Manager Orduno said the additional funds would allow for more street maintenance and
is consistent with the City Council policy to make increases incrementally.
City Manager Orduno requested City Council direction on the franchise fee increases and how
much to budget for LGA. The current proposed budget includes $300,000 of the $600,000 set-aside.
Council Member Rosenberg stated the message she has received from residents is that they
would prefer to see an increase in property taxes not fees. She believes residents will respond to an
increase in fees.
Council Member Ulrich stated she believes it is more likely to receive feedback about property
taxes than fees. She added the residents need to pay for what they get and don't seem to mind the
fees since they go to a dedicated fund.
Council Member Sandahl said the funds are allocated to street maintenance and forestry.
Council Member Enger stated he liked the fees to going for streets and trees. The
replacement of trees needs to be kept up especially due to storms and Dutch elm disease.
City Manager Orduno added that the fees also include $200,000 for City Hall improvements as
determined by the City Hall Task Force.
The City Council consensus was to increase gas and electric franchise fees each by 10%.
City Manager Orduno recommended the use of 1/2 of the $600,000 set aside to keep the tax
levy at 7.17%. The City should be on a path to weaning off of LGA. The limited market value is
being fazed out and will end payable tax year 2007. The 7.17% levy is almost solely based upon the
loss of LGA in 2005.
Mayor Kirsch said it was more prudent to keep some of the set-aside.
Council Member Sandahl said she was willing to use $300,000 of the set aside but a street
light fee may need to be instituted mid-year.
Council Member Rosenberg expressed support to use the $300,000 because she did not want
to increase the levy to 10% if no set-aside was used.
Council Member Enger expressed support of using $300,000 of the set-aside and hoped to
receive the proposed LGA allocation.
City Manager Orduno clarified that the use of the $300,000 is from the current $600,000 set
aside amount. This keeps $300,000 for possible additional LGA cuts in 2005.
The City Council consensus was to use $300,000 of the set-aside funds.
The City Council will conduct a Special City Council meeting on September 8 at 5:30 p.m. to
certify the 2005 preliminary tax levy.
The meeting was adjourned by unanimous consent at 8:40 p.m.
Date Approved: September 16, 2004
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Cheryl Kfumhorz
Recording Secretary