05-13-03 Regular
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Meeting
May 13, 2003
The meeting was called to order by Mayor Kirsch at 6:33 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; Mike Eastling, Public Works Director; Bruce Nordquist, Acting
Community Development Director; Dan Scott, Public Safety Director; John
Stark, Community Development Manager; Betsy Christensen, Health
Administrator; 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/Rosenberg, S/Sandahl to approve the minutes of (1) ReQular City Council MeetinQ of
April 22. 2003; (2) Richfield Local Board of Equalization of April 29. 2003: and (3) Special City
Council MeetinQ of May 2. 2003.
Motion carried 5-0.
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May 13, 2003
Item #1
Mayor Kirsch read and presented to Public Safety Director Scott a proclamation designating
May 11-17, 2003 as National Police Week in Richfield.
Item #2
Council Member Rosenberg requested future City Council agendas include an item named
"Hats Off to Hometown Hits" to provide an opportunity to promote and recognize the positive events
and activities in Richfield. She invited the City Council Members and the public to contact her so the
items can be placed on the agenda.
Council Member Rosenberg recognized the Little League Baseball parents' clean-up efforts at
Lincoln Field.
Item #3
Council Member Rosenberg introduced representatives of MIRA and Church of the
Assumption.
MIRA representatives explained how the center began and its current activities.
Assumption Church representatives explained that the concept of the center is not to create
new services, but utilize current and available services.
The City Council thanked the center and church representatives for the vital services they
provide.
Item #4
Health Administrator Christensen explained the distribution of the grant money from the State
of Minnesota Health Alert Network and federal funds from the Center for Disease Control for public
health emergency preparedness.
Denise Dunn, Public Health Emergency Preparedness Coordinator, reported on specific on-
going efforts in public health.
The City Council thanked the public health staff for their efforts.
Item #5
Sally Parsons, Advisory Board of Health Chair, presented the 2003 Advisory Board of
Health annual report.
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May 13, 2003
Council Member Rosenberg thanked Ms. Parsons for all the attachments to the report.
;'i~#f;ti:{j; \'~~~t';,V-r ';
Council Member Sandahl commented on the "To the Manager: Thank you for making this a
smoke-free restaurant" business-like cards.
The City Council requested a supply of the "Thank You" cards and the list of smoke-free
restaurants in Richfield.
Council Member Sandahl read an article from the May 8, 2003 Richfield Sun Current
"Richfield Cited in State Housing report". The article states the Office of the Legislative Auditor
issued a report, "Preserving Housing: A Best Practices Review," that identifies Richfield as a model
for other communities.
Ms. Sandahl thanked past and current leadership for taking this housing initiative.
Council Member Enger recommended dining at the new Mexican restaurant on the old King
Oscar's site.
Council Member Ulrich stated Mayor Kirsch and she attended recent grand openings at the
ARC Village on 66th Street and Penn Avenue and TBI Metro Services in the HUB.
Council Member Rosenberg announced the June 21 Richfield Beautiful Home and Garden
Tour from 1 - 4 p.m.
Council Member Ulrich announced the first meeting of the MSP Noise Oversight Committee
will be on May 22.
Item #6
M/Rosenberg, S/Sandahl to approve the aQenda.
Motion carried 5-0.
Item #7
A. Removed from the consent calendar and placed on the regular agenda for consideration as
Item 8.
B. Approved resolution authorizing City Council not to waive monetary limits on municipal tort
liability established by Minnesota Statutes 466.04 S.R. No. 105
RESOLUTION NO. 9331
RESOLUTION AFFIRMING MUNICIPAL TORT LIABILITY LIMITS ESTABLISHED BY MINNESOTA
STATUTES 466.04
This resolution appears as Resolution No. 9331 in Resolution Book No. 74.
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May 13, 2003
C. Approved resolution authorizing donation of used computer equipment to Independent
School District #280 S. R. NO.1 06
RESOLUTION NO. 9332
RESOLUTION AUTHORIZING THE TRANSFER OF USED COMPUTER EQUIPMENT TO
INDEPENDENT SCHOOL DISTRICT #280
This resolution appears as Resolution No. 9332 in Resolution Book No. 74.
D. Removed from the consent calendar and placed on the regular agenda for consideration as
Item 8.
E. Removed from the consent calendar and placed on the regular agenda for consideration as
Item 8.
F. Approved resolution authorizing subdivision waiver for Church of the Assumption, 305 East
77th Street S.R. No. 109
RESOLUTION NO. 9335
RESOLUTION AUTHORIZING A SUBDIVISION WAIVER
FOR THE CHURCH OF ASSUMPTION LOCATED AT 305 EAST 77TH STREET
This resolution appears as Resolution No. 9335 in Resolution Book No. 74.
G. Removed from the consent calendar and placed on the regular agenda for consideration as
Item 8.
H. Removed from the consent calendar and placed on the regular agenda for consideration as
Item 8.
I. Approved contract with City of Bloomington, using grant funds, to provide public health
emergency preparedness/bioterrorism services and development of response system S.R.
No. 112
J. Removed from the consent calendar and placed on the regular agenda for consideration as
Item 8.
K. Approved new taxi license for Azteca Van Lines, Inc., 3645 Nicollet Avenue, Minneapolis,
MN S.R. No. 114
L. Removed from the consent calendar and placed on the regular agenda for consideration as
Item 8.
M/Sandahl, S/Rosenberg to approve the Consent Calendar as amended.
Motion carried 5-0
Item #8
7L. Consideration of approval of new therapeutic massage license for Deborah
Clarke, 6603 Queen Avenue S.R. No. 115
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May 13, 2003
Council Member Sandahl requested Consent Calendar Item 7L be considered first because
the applicant was present.
Council Member Sandahl presented Staff Report No. 115 regarding approval of a new
therapeutic massage license for Deborah Clarke, 6603 Queen Avenue. She invited the applicant
to address the City Council regarding her business.
Deborah Clarke, applicant, 6719 Fourth Avenue, explained the background and services
provided related to her therapeutic massage business.
M/Sandahl, S/Rosenberg to approve a request for a new therapeutic massage license for
Deborah Clarke (business not vet named), 6603 Queen Avenue.
Motion carried 5-0.
7 A. Consideration of approval of first reading of transitory ordinance authorizing
sale of parcels at 7645 Aldrich and 7646 Lyndale Avenues to The Cornerstone Group S.R.
No. 104
Council Member Ulrich stated this item was removed from the Consent Calendar because
she needed to abstain from voting on this issue due to her personal interest in the area.
M/Rosenberg, S/Sandahl to conduct first reading of a transitory ordinance authorizing the
sale of parcels located at 7645 Aldrich and 7646 Lvndale Avenues to The Cornerstone Group.
Motion carried 4-0. (Ulrich abstained.)
70. Consideration of approval of resolution authorizing Business Subsidy
Agreement between HRA and Lyndale Gateway, L.L.C. for Cornerstone Group project S.R.
No. 107
Council Member Enger presented Staff Report No. 107 regarding approval of a resolution
authorizing Business Subsidy Agreement between HRA and Lyndale Gateway, L.L.C. for
Cornerstone Group project. He asked how the business subsidy is repaid.
Community Development Manager Stark explained how the subsidy is determined and the
funding sources.
M/Enger, S/Rosenberg that the following resolution be adopted, that it be spread in the
resolution book and that it be made part of these minutes:
RESOLUTION NO. 9333
RESOLUTION APPROVING A BUSINESS SUBSIDY AGREEMENT BETWEEN
THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF RICHFIELD AND L YNDALE GATEWAY L.L.C.
Motion carried 4-0. (Ulrich abstained.) This resolution appears as Resolution No. 9333 in
Resolution Book No. 74.
7E. Consideration of approval of resolution authorizing application to Hennepin
County for Transit Oriented Development Grant for Airport Noise Mitigative Area S.R. No.
108
Council Member Enger presented Staff Report NO.1 08 regarding approval of a resolution
authorizing application to Hennepin County for Transit Oriented Development Grant for Airport
Noise Mitigative Area. He asked if Ryan Companies has an exclusive development agreement
with the City. He also asked if requests for proposals were possible to seek other developers for
the area.
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May 13, 2003
City Manager Orduno stated Ryan Companies does not have an exclusive agreement and
discussions have occurred with other developers. She said the HRA would need to approve a
request for proposals. She added that work has diligently been spent to secure funding to make
the site attractive.
Council Member Enger asked if the Metropolitan Council has provided financial assistance.
City Manager Orduno explained the Metropolitan Council's focus is housing and in this area
of Richfield, single family homes are not compatible with the airport noise.
M/Enger, S/Sandahl that the followino resolution be adopted. that it be spread in the
resolution book and that it be made part of these minutes:
RESOLUTION NO. 9334
RESOLUTION AUTHORIZING THE SUBMITTAL OF
AN APPLICATION TO HENNEPIN COUNTY
FOR TRANSIT-ORIENTED DEVELOPMENT FUNDING
FOR THE AIRPORT NOISE MITIGATIVE AREA
Motion carried 5-0. This resolution appears as Resolution No. 9334 in Resolution Book No.
74.
7G. Consideration of approval of resolution supporting completion of 1996 Sound
Insulation Program S.R. No. 110
Council Member Rosenberg presented Staff Report No. 110 regarding approval of a
resolution supporting completion of the 1996 Sound Insulation Program. She encouraged
residents to attend the May 19 MAC meeting because a vote will be taken to complete or not
complete the sound insulation program. She said MAC should honor their commitment to the
surrounding communities.
M/Rosenberg, S/Sandahl that the followino resolution be adopted, that it be spread in the
resolution book and that it be made part of these minutes:
RESOLUTION NO. 9336
RESOLUTION SUPPORTING THE COMPLETION OF THE 1996 SOUND INSULATION
PROGRAM
Council Member Enger said if MAC defers insulating indefinitely, many Richfield homes to
the 60 dnl will not be insulated. He agreed it was imperative to attend the meeting.
Council Member Ulrich requested a copy of tonight's approved resolution be sent to Scott
Benson, Minneapolis City Council Member.
Motion carried 5-0. This resolution appears as Resolution No. 9336 in Resolution Book No.
74.
7H. Consideration of approval of Consent to Mutual Representation for Kennedy &
Graven regarding representation of International Design Center, 1550 West 78th Street S.R.
No. 111
Council Member Enger presented Staff Report No. 111 regarding approval of Consent to
Mutual Representation for Kennedy & Graven regarding representation of International Design
Center, 1550 West 78th Street. He asked if the City would be without legal representation if the
League of Minnesota Insurance Trust (LMCIT) would not handle this claim.
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May 13, 2003
City Attorney Thomson explained the LMCIT routinely handles these types of insurance
claims; but if it was not possible, the ~tj~\~,~Ruld be.referred to another firm.
M/Enger, S/Rosenberg to authorize the Mayor to sion a consent to mutual representation
for KennedY & Graven reoardino representation of the International Desion Center. 1550 West
78th Street.
Motion carried 5-0.
7 J. Consideration of approval of change orders for additional work on 76th Street
Widening Project and work order for continued service on construction observation
provided by City's consultant, Short Elliot Hendrickson S.R. No. 113
Council Member Enger presented Staff Report No. 113 regarding approval of change
orders for additional work on 76th Street Widening Project and work order for continued service on
construction observation provided by City's consultant, Short Elliot Hendrickson. He asked who
was responsible for the removal of the power poles and why there was a delay in their removal.
Public Works Director Eastling explained the issue with Xcel regarding the service line
underground and aboye ground. He said the negotiation with Best Buy regarding payment was
complicated and lengthy.
Council Member Enger asked why Best Buy did not pay the additional expenses.
Public Works Director Eastling explained more money was saved in the undergrounding of
the lines with the contractor doing the work.
Council Member Enger and Mayor Kirsch asked to have the wooden utility poles removed
by the new lift station and on the south side of 76th Street.
Public Works Director Eastling explained the net change of less than 5% in a contract this
project's size is not unreasonable.
Council Member Enger asked if City staff positions will be eliminated when this project is
completely finished.
Public Works Director Eastling said no City staff was hired specifically for this project.
M/Enger, S/Rosenberg to approve the Chanoe Orders and Work Order for services
provided on the 76th Street Widenino Proiect.
Motion carried 5-0.
Item #9
Council Member Ulrich left the meeting (8:10 p.m.) because she was unable to vote on this
item due to a personal interest in the Lyndale Gateway West project area. She did not return to
the meeting.
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May 13, 2003
Council Member Sandahl presented the first item in Staff Report No. 116 regarding a
resolution approving the Modification to the Redevelopment Plan for the Richfield Redevelopment
Project Area. She said this would authorize the expenditure of one tax increment district's
increment revenue in another tax increment district within the defined boundaries of the project
area. Specifically, this will authorize the HRA to loan tax increment from the ILN TIF District to the
Lyndale Gateway West TIF District for the acquisition of parcels.
Bob Shotwell, 7333 Upton Avenue, asked for clarification of the tax increment district
boundaries.
Council Member Sandahl provided clarification on the boundaries.
M/Rosenberg, StEnger to close the public hearinQ.
Motion carried 4-0.
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:
RESOLUTION NO. 9337
RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN
FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA.
Council Member Sandahl stated the community is anxiously awaiting the redevelopment of
the west-side of Lyndale Avenue/76th Street. She read the findings as stated in the resolution.
Motion carried 4-0. This resolution appears as Resolution No. 9337 in Resolution Book No.
74.
Council Member Sandahl presented the second item in Staff Report No. 116 regarding a
resolution approving Modification #11 to Interstate-Lyndale-Nicollet Tax Increment Financing Plan.
She said the substantive change includes the authority to loan tax increments generated by the
ILN TIF District to the Lyndale Gateway West TIF District for the acquisition of certain properties
related to the Cornerstone Group project.
M/Rosenberg, StEnger to close the public hearinQ.
Motion carried 4-0.
M/Sandahl, StEnger 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. 9338
RESOLUTION ADOPTING MODIFICATION NO. 11 TO THE TAX INCREMENT FINANCING
PLAN FOR THE INTERSTATE-LYNDALE-NICOLLET (ILN)
TAX INCREMENT FINANCING DISTRICT
Council Member Sandahl explained this modification is needed to allow the Lyndale
Gateway West project to move forward. She stated there is a strong public purpose that benefits
the entire community.
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May 13, 2003
Council Member Enger stated this project provides different types of housing and should be
extremely marketable because it is in!m~!!?n~t Buy area.
Motion carried 4-0. This resolution appears as Resolution No. 9338 in Resolution Book No.
74.
Council Member Sandahl presented the third item in Staff Report No. 116 regarding a
resolution approving modification #1 to the Lyndale Gateway West Tax Increment Financing Plan.
She said the substantive change includes the authority to borrow tax increments generated by the
ILN TIF District to the Lyndale Gateway West TIF District for the acquisition of certain properties
related to the Cornerstone Group project.
MtRosenberg, StEnger to close the public hearinQ.
Motion carried 4-0.
MtSandahl, StEnger 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. 9339
RESOLUTION ADOPTING MODIFICATION NO.1 TO THE
TAX INCREMENT FINANCING PLAN FOR THE
LYNDALE GATEWAY WEST TAX INCREMENT FINANCING DISTRICT
Council Member Sandahl explained this modification is needed to allow the Lyndale
Gateway West project to move forward. She stated there is a strong public purpose that benefits
the entire community.
Motion carried 4-0. This resolution appears as Resolution No. 9339 in Resolution Book No.
74.
Mayor Kirsch asked about the status of the Lyndale Gateway West project.
Community Development Manager Stark explained the status of the site assembly by
Cornerstone, property acquisition, tenant relocation and timeline, and the financing package.
Council Member Enger asked if Best Buy employees are being marketed directly for buying
at Kensington Park.
Community Development Manager Stark said yes, a direct relationship has been
established. He added that Best Buy may purchase unit(s) as a corporation to house people who
will be providing training, etc. at their campus.
Item #10
Council Member Rosenberg presented Staff Report No. 117 regarding the appointment of
two City residents to serve on "Blending Public Spaces and Private Development" Work Group.
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May 13, 2003
M/Rosenberg, S/Sandahl to appoint Tom Rublein as a City resident representative and
Mary Olafson as a Richfield Beautiful representative.
Motion carried 4-0.
The Council stated a second resident representative would be appointed later.
City Manager Orduno reported on her recent City and County Manager's Conference in
Brainerd, "Leading in an Uncertain Environment".
Ms. Orduno stated the City has applied for a League of Minnesota City award for the Best Buy
project.
M/Rosenberg, S/Sandahl that the followinq claims and pavrolls be approved:
RICHFIELD BANK & TRUST CO.
AlP Checks: 123776 - 124216
PAYROLL 35042 - 35271
TOTAL
$ 1,737,687.75
$ 823,609.78
$ 2,561,297.53
Motion carried 4-0.
Council Member Sandahl requested that future items which may require Council Member
Ulrich to abstain from voting be placed at the end of the agenda.
Council Member Sandahl stated that under the new Conceal and Carry law, firearms
cannot be stopped from entering City Hall.
Council Member Rosenberg stated a resident commented that there is less traffic on 76th
Street with Best Buy in place.
The City Council meeting was adjourned by unanimous consent at 8:33 p.m.
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Recording Secretary
Date Approved: May 27, 2003