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08-24-04 Regular CITY COUNCIL MEETING MINUTES Richfield, Minnesota Regular Meeting August 24, 2004 The meeting was called to order by Mayor Kirsch at 6:32 p.m. 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; Bill Fillmore, Municipal Liquor Operations Director; John Stark, Assistant Community Development Director; 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/Ulrich, S/Rosenberg to approve the minutes of ReQular City Council MeetinQ of AUQust 10. 2004. Motion carried 5-0. Item #1 Council Meeting Minutes -2- August 24, 2004 Council Member Rosenberg acknowledged the article in the Housing and Community Development magazine featured Richfield as "The Lord of the Inner Rings," related to Wood lake Centre. Council Member Rosenberg asked the City Manager to provide an accurate report on erroneous information out in the community related to municipal liquor store sales. Municipal Liquor Operations Director Fillmore reported on the financial status of the liquor sales, including an increase over last year. He stated fixed costs are paid at the beginning of each year so profit begins following those allocations. Mr. Fillmore said marketing via the internet will be reviewed with corporate businesses, but sales may not be possible. Mr. Fillmore said $500,000 is allocated for park improvements and also $200,000 in lieu of taxes to the City's General Fund. Council Member Enger stated the profitability base is reflected in a depressed market but proper redevelopment and additional residents will increase profits. The City Council thanked Mr. Fillmore and his staff for their efforts. Council Member Ulrich expressed support for the current system for park improvements and that the City has control of the stores and professional staff. Council Member Ulrich discussed the issue of the City of Minneapolis Transportation Committee not agreeing to recommend to the Minneapolis Full Council approval of the final layout of the 1-35W/62 Crosstown Commons Reconstruction Project. She asked about the appeal process and Transportation Commissioner Carol Molnau's authority to say if the project proceeds and overrides cities. Mayor Kirsch stated that Minneapolis Mayor Rybeck contacted him today and said Minneapolis wants High Speed Bus included but the goal is not to hold up the project. . City Manager Orduno stated Gene Ranieri, Minneapolis Chief of Inter-Governmental Affairs, contacted her also and said Minneapolis received positive feedback from MnDOT. The Minneapolis Council vote is on September 3. If it is voted down, the issue will go to a mediation panel with Ms. Molnau having the final say. Council Member Ulrich expressed skepticism of Minneapolis and that many years of study by the Met Council indicates mixing high speed transit with automobiles on a freeway is a bad idea. Council Member Enger asked where high speed buses would operate on the freeway. Council Member Ulrich said down the center. Council Member Sandahl explained the high speed transit is already in the proposal. Council Member Enger commented on National Night Out activities, thanking residents for a great attendance. Council Member Sandahl reported on the change of the last mail pick-up at the Richfield post office. It previously was at 6:00 p.m. but is now 5:15 p.m. and this is a substantial change in service to Richfield. M/Sandahl, S/Rosenberg to notify the main post office to re-instate at the Richfield location. the last mail pickup at 6:00 p.m. and eliminatinQ the 5:15 p.m. pickup is acceptable. Motion carried 5-0. Council Meeting Minutes -3- August 24, 2004 Item #2 None. Item #3 M/Rosenberg, S/Enger to approve the aaenda. Motion carried 5-0. Item #4 A. Approved resolution calling for moratorium on City's floodplain regulations and first reading of ordinance directing study be conducted and moratorium established for development in floodplain area and schedule second reading for September 16,2004 S.R. No. 136 RESOLUTION NO. 9497 RESOLUTION AUTHORIZING A STUDY TO DETERMINE REQUIRED AMENDMENTS TO THE CITY'S FLOODPLAIN REGULATIONS AND ESTABLISHING A MORATORIUM ON DEVELOPMENT IN THE FLOODPLAIN AREA This resolution appears as Resolution No. 9497 in Resolution Book No. 75. B. Approved resolution authorizing City Manager to execute Letter of Agreement establishing Health Care Saving Plan for Police Patrol Officer/Detective bargaining unit employees, LELS Local#123 S.R. No. 137 RESOLUTION NO. 9498 RESOLUTION APPROVING LETTER OF AGREEMENT BETWEEN THE CITY OF RICHFIELD AND LAW ENFORCEMENT LABOR SERVICES (LELS), LOCAL 123 ESTABLISHING A POST RETIREMENT HEALTH CARE SAVINGS PLAN This resolution appears as Resolution No. 9498 in Resolution Book No. 75. M/Rosenberg, S/Enger to approve the Consent Calendar. Motion carried 5-0. Item #5 None. Council Meeting Minutes -4- August 24, 2004 Item #6 Council Member Sandahl presented Staff Report No. 138 regarding a preliminary resolution calling for a public hearing on the issuance of Senior Housing Revenue Refunding Bond Financing for Richfield Senior Housing, Inc. Council Member Sandahl asked about the option to set up the funding to go forward, re- issue the bonds, pay the HRA and then obtain the administrative fee. The Twin City Christian Homes proposal relieves Richfield Sr. Housing, Inc. of their cash flow problem, but creates an administrative cost for the City. Finance Manager Regis stated the City could request in exchange for waiving the fees, the inclusion of a "look back provision" where if the project should begin to cash flow sufficiently, the City would then have the right to collect the annual administrative fee. The City could be forfeiting in excess of $300,000 over the life of the loan. Council Member Enger asked about the term of the bonds. Mark Landreville, bond underwriter, explained the unforeseen expenses and bonds restructuring. He was agreeable to coming to terms to pay the administrative fees at the back end of the loan. Council Member Sandahl stated the City budget needs to be met and the City Council directive is to recover costs, such as administrative fees; so taxes are not raised. These policies have applied to other developments and there is a concern to treat this one differently. Mr. Landreville stated he was prepared to work with the City to come to some accommodation and that this refinancing is done at the threat of default which makes it a different situation. Assistant Community Development Director Stark explained the acquisition of all commercial properties for the development was more than anticipated. Council Member Enger asked about the original taxable market value and the reduction in tax increment flow. Mr. Stark said the reduction is due to class rate and explained the office components which make it a City issue not a County one. M/Sandahl, S/Rosenberg that the followinq resolution be adopted, that it be spread in the resolution book and that it be made part of these minutes and request Richfield Sr. Housinq, Inc. to work with City staff to determine a fair mechanism to not waive the administrative fees but rather defer their payment and determine smaller denominations of the bonds: RESOLUTION NO. 9499 RELATING TO A SENIOR HOUSING REVENUE REFUNDING BOND FINANCING FOR RICHFIELD SENIOR HOUSING, INC. BY THE CITY OF RICHFIELD, MINNESOTA (the "City") Council Member Enger asked if, in case of default, it is more difficult for a smaller bond holder to collect. Mr. Landreville stated he believed the opposite was true and explained the difference between a large and small bond holder. Council Member Ulrich asked about the City getting paid if there is a default. Council Meeting Minutes -5- August 24, 2004 Finance Manager Regis said the City is at the bottom of the list of creditors. Motion carried 4-1. (Ulrich oppClsed.) 'This resolution appears as Resolution No. 9499 in Resolution Book No. 75. Item #7 M/Rosenberg, S/Sandahl that the followino claims and pavrolls be approved: RICHFIELD BANK & TRUST CO. AlP Checks: 133858 - 134184 PAYROLL 39332 - 39427 TOTAL $ 951,163.16 $ 476,563.43 $ 1,427,726.59 Motion carried 5-0. Item #11 Date Approved: The City Council meeting was adjourned by unanimous consent at 7:26 p.m. :?;~~!~ Mart' . Kirs Ma r September 16, 2004 a~~/ 4~/4 Cheryl Kr mholZ Recording Secretary