12-12-06 Regular
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Meeting
December 12, 2006
The meeting was called to order by Mayor Kirsch at 6:31 p.m.
Members Present:
Martin Kirsch, Mayor; Sue Sandahl; and Susan Rosenberg.
Members
Not Present:
Fred Wroge; and Bill Kilian.
Steve Devich, City Manager; Mike Eastling, Public Works Director; Bruce
Palmborg, Community Development Director; Jim Topitzhofer, Recreation
Services Director; Brad Sveum, Fire Services Director; Bill Fillmore, Liquor
Operations Director; Betsy Osborn, Health Administrator; Pat Smith,
Community Development Manager; Chris Regis, Finance Manager; Cheryl
Krumholz, Recording Secretary; andCorrine Thomson, City Attorney.
M/Sandahl, S/Rosenberg to excuse the absence of Council Member Wroae and Council
Member Kilian from the December 12 Special City Council Worksession and Reaular City Council
Meetina.
Staff Present:
Council Member Rosenberg stated she was reluctantly excusing Council Member Wroge
because this was his third excused absence. He also was absent from his second Truth-in-
Taxation meeting. She said the City Council is owed an explanation because attendance is
important.
Motion carried 3-0.
George Holter, 6424 Emerson Avenue, addressed the City Council regarding a sewer
backup incident that occurred in 2003. He requested the City Council review his claim which has
been denied by the City's insurance company. He asked the City Council to make a decision on
this .claim at the next City Council meeting.
George Frost, 1430 East 66th Street, addressed the City Council to request an extension or
amendment to EI Jalapeno Market's off street parking permit due to financial difficulties and an
inability to get all the work done.
Council Meeting Minutes
-2-
December 12, 2006
City Attorney Thomson stated that the City Council cannot take action during the Open
Forum. If the City Council wishes to discuss this matter, it needs to be placed on an agenda either
tonight or a subsequent agenda if additional information is needed.
Council Member Sandahl asked about the current deadlines to get the work done.
Mr. Frost said there are multiple deadlines.
Community Development Director Palmborg reviewed the deadlines of the 30 stipulations.
One item has been completed related to the sign but it is Community Development's observation
that no others are done.
Mayor Kirsch led the audience in the Pledge of Allegiance.
M/Rosenberg, S/Sandahl to approve the minutes of (1) Reaular City Council Meeting of
November 14.2006; (2) Special Concurrent City Council/Planning Commission/Comprehensive
Plan Advisory Committee Meetino of November 16. 2006: (3) Reoular City Council Meeting of
November 28. 2006: and (4) Special City Council Meeting of December 4. 2006.
Motion carried 3-0.
Item #1
Mayor Pro Tempore Rosenberg presented a plaque to out-going Mayor Kirsch in
recognition of his years of service as Mayor.
Mayor Pro Tempore Rosenberg expressed her appreciation to Mayor Kirsch, including
acknowledging his growth in human service issues and his consistent attendance at events.
Council Member Sandahl spoke on behalf of Council Member Kilian who expressed his
appreciation for the Mayor's time and work for the City and his foresight and leadership on the City
Council.
Council Member Sandahl expressed her appreciation for Mayor Kirsch's role in the City's
remarkable accomplishments over the years and his hard work and encouraged him to continue to
"do good".
City Manager Devich acknowledged Mayor Kirsch's phenomenal dedication to Richfield,
support of staff and his leadership ushering in change that ultimately benefited the community.
City Attorney Thomson acknowledged the many hours of meetings attended by Mayor
Kirsch, his respect for people and his filling the role of the presiding officer fairly.
Council Meeting Minutes
-3-
December 12, 2006
Mayor Kirsch expressed his appreciation to serve the City of Richfield and acknowledged
the efforts of his colleagues, past and present City Managers _and City staff.
Item #2
Debbie Goettel, Richfield Foundation President, Jon Schoonmaker and Joan Heimberger,
Richfield Foundation members, presented $13,000 in Richfield Foundation grants and a $1,000
grant from the Jenny Sandahl scholarship fund.
Item #3
Council Me'mber Sandahl presented a Certificate of Achievement for Financial Reporting to
City of Richfield Finance Manager Chris Regis.
Item #4
Mayor Kirsch read the resolution recognizing out-going Fifth District Congressman Martin
Sabo and requested all City Council Members sign it.
Council Member Sandahl stated she will provide a report at a future City Council meeting on
the recent National League of Cities conference she attended.
Council Member Rosenberg announced the December 14 open house regarding the
proposed Veterans Memorial.
Council Member Sandahl requested tonight's agenda be amended to include discussion of
the 2007 annual goalsetting session.
Item #5
Mayor Kirsch amended the agenda to add:
. 18A. Discussion of selecting a facilitator for the 2007 goalsetting session.
. 188. Discussion of George Frost's request for an extension on the EI Jalapeno Market
off-street parking permit stipulations. '
City Attorney Thomson stated Item #13 is described incorrectly on the agenda and in the
Item for Council Consideration and Recommended Action sections of the Staff Report. The body of
the Staff Report, ordinance and resolution are correct. The Item for Consideration and
Recommended Action should read: Public hearing and second reading of ordinance vacating
Council Meeting Minutes
-4-
December 12, 2006
reserved utility easements in Cedar Point Commons Redevelopment area and resolution approving
summary publication of ordinance.
M/Rosenberg, S/Sandahl to approve the aaenda as amended.
Motion carried 3-0.
Item #6
A. Approved first reading of transitory ordinance authorizing conveyance of certain real
property to Ryan Companies US, Inc. and scheduling public hearing and second reading
for January 9,2007 S.R. No. 258
B. Approved authorizing Mayor and City Manager to execute termination of party wall
agreement between City of Richfield and Kensington Park Retail, LLC at 76th Street and
Lyndale Avenue S.R. No. 259
C. Approved resolution reappointing Robyn Goolsbey and Rudy Hanuman to Richfield
Tourism Promotion Board for three-year terms ending December 31, 2009 S.R. No. 260
RESOLUTION NO. 9854
RESOLUTION REAPPOINTING REPRESENTATIVES
TO THE BOARD OF DIRECTORS OF
THE RICHFIELD TOURISM PROMOTION BOARD, INC.
This resolution appears as Resolution No. 9854.
D. Approved authorizing City Manager to execute stipulation for settlement and settlement
agreement and release for workers' compensation claim with lump sum payment not to
exceed $67,500 S.R. No. 261
M/Rosenberg, S/Sandahl to approve the Consent Calendar.
Motion carried 3-0.
Item #7
None.
Item #8
Council Member Sandahl presented Staff Report No.'s 262 and 263.
Council Meeting Minutes
-5-
December 12, 2006
Council Member Sandahl stated if no City Council objected, a single public hearing may be
conducted for all the license approvals and may approve the licenses in one motion.
Mark Nichols, Metro Pawn owner, stated he was. available to answer questions.
M/Sandahl, S/Rosenberg to close the public hearinas.
Motion carried 3-0.
M/Sandahl, S/Rosenberg to approve the renewal of the 2007 Pawnbroker and Secondhand
Goods Dealer licenses for Metro Pawn & Gun. Inc.. 7529 Lvndale Avenue South: and approve the
renewal of pawnbroker and secondhand aoods dealer licenses for Universitv Gash Companv. LLC
d/b/a Avi's Pawn & Jewelrv. 6414 Nicollet Avenue South.
Motion carried 3-0.
Item #9
Council Member Sandahl presented Staff Report No.'s 264 and 265.
Council Member Sandahl stated if no City Council objected, a single public hearing may be
conducted for all the license approvals and may approve the licenses in one motion.
M/Rosenberg, S/Sandahl to close the public hearinas.
Motion carried 3-0.
M/Sandahl, S/Rosenberg to approve the renewal of Club On-Sale and Sundav Liauor
licenses for Fred Babcock V.F.W. Post No. 5555. Inc.. d/b/a Four Nickels Food and Drink. 6715
Lake Shore Drive: and renewal of 2007 club on-sale and Sundav liauor licenses for Minneapolis-
Richfield American Leaion Post 435. 6501 Portland Avenue South. .
Motion carried 3-0.
Item #10
Council Meeting Minutes
-6-
December 12, 2006
Council Member Sandahl presented Staff Report No.'s 266 through 272.
Council Member Sandahl stated if no City Council objected, a single public hearing may be
conducted for all the license approvals and may approve the licenses in one motion.
M/Rosenberg, S/Sandahl to close the public hearinas.
Motion carried 3-0.
M/Sandahl, S/Rosenberg to approve the renewal of the 2007 On-Sale Intoxicatina and
Sunday liQuor licenses for The Frenchman's. 1400 East 66th Street: the renewal of the 2007 On-
Sale Intoxicatina and Sunday liQuor licenses for Wiltshire Restaurants. LLC d/b/a Houlihan's
Restaurant & Bar. 6601 Lyndale Avenue South: the renewal of On-Sale Intoxicatina and Sunday
liQuor licenses for Don Pablo's Operatina Corporation d/b/a Don Pablos. 980 West 78th Street: the
renewal of the 2007 On-Sale Intoxicatina and Sunday liQuor licenses for Champps Operatina
Corporation d/b/a Champps Restaurant. 790 West 66th Street: the renewal of the 2007 On-Sale
Intoxicatina and Sunday liQuor licenses for Paisan. Inc.. d/b/a Khan's Monaolian BarbeQue. 500
East 78th Street: the renewal of On-Sale Wine and Sunday liQuor licenses for HKD Lo. Inc.. d/b/a
Jun Bo Chinese Restaurant. 7717 Nicollet Avenue South: and the renewal of the 2007 On-Sale
Intoxicatina and Sunday liQuor licenses for Taco Morelos II. Inc.. 2 West 66th Street.
Motion carried 3-0.
Item #11
Council Member Sandahl presented Staff Report No.'s 273 through 277.
Council Member Sandahl stated if no City Council objected, a single public hearing may be
conducted for all the license approvals and may approve the licenses in one motion.
Aribel's representative stated they will submit to the City staff their establishment's
food/liquor ratio as soon as possible.
M/Rosenberg, S/Sandahl to close the public hearinas.
Motion carried 3-0.
M/Sandahl, S/Rosenberg to approve the renewal of 2007 On-Sale Wine and 3.2 Percent
Malt liQuor licenses for Chipotle Mexican Grill of Colorado. LLC. 7644 Lyndale Avenue South: the
renewal of On-Sale Wine and 3.2 Percent Malt liQuor licenses for Thompson's Fireside Pizza. Inc..
d/b/a Fireside Pizza. 6736 Penn Avenue South; the renewal of the 2007 On-Sale Wine and 3.2
Percent Malt liQuor licenses for Kiana's Red Pepper. Inc.. d/b/a Red Pepper Chinese Restaurant.
2902 West 66th Street: and the renewal of the 2007 on-sale wine and 3.2 percent malt liQuor
licenses for The Noodle Shop - Colorado Inc.. d/b/a Noodles and Company. 7630 Lyndale Avenue
South.
Council Meeting Minutes
-7-
December 12, 2006
Motion carried 3-0.
M/Sandahl, S/Rosenberg to approve the renewal of the 2007 On-Sale Wine and 3.2 Percent
Malt liQuor licenses for Aribel's, 1120 East 77th Street continaent upon their submittal to City staff
their establishments food/liQuor ratio.
Motion carried 3-0.
Item #12
Mayor Kirsch presented Staff Report No. 278.
Larry Wozniczka, 6744 Wentworth Avenue, asked about Ryan Companies US, Inc. being
responsible for the debt and underwriting cost of the special assessment bond,in addition to the
20% assessment.
City Attorney Thomson explained that Ryan has agreed through the development contract to
be assessed for a minimum/maximum amount. The contract does not specify including project
costs, interest and underwriting.
Mr. Wozniczka said it appears the remainder of the City is paying the bond interest and
Ryan may not be paying 20% of the bond so requirements are not met.
City Attorney Thomson explained the bond is $4.25 million and the special assessment is
$850,000. The interest accrued on $850,000 is at the rate specified in the resolution. The interest
runs on the unpaid balance on the special assessment.
City Attorney Thomson explained the distinction between bond sale interest rate and special
assessment rate. Ryan is not paying interest on the bonds because the City incurs the debt. The
City uses revenue from the special assessment and other sources to make the bond payment.
Ryan will pay interest on the special assessment.
Mr. Wozniczka stated the land sale for the bus turnout was not sold at market value and that
may have reduced the bond.
M/Sandahl, S/Rosenberg to close the public hearina.
Motion carried 3-0.
M/Kirsch, S/Sandahl that the followina resolution be adopted and that it be made part of
these minutes:
RESOLUTION NO. 9855
RESOLUTION ORDERING THE CONSTRUCTION OF THE
RICHFIELD PARKWAY AND 66TH STREET INTERSECTION IMPROVEMENTS
Motion carried 3-0. This resolution appears as Resolution No. 9855.
Council Meeting Minutes
-8-
December 12, 2006
Item #13
Mayor Kirsch clarified the recommended action proposed tonight and presented Staff Report
No. 279.
M/Rosenberg, S/Sandahl to close the public hearino.
?
Motion carried 3-0.
M/Kirsch, S/Sandahl that this constitutes the second readino of Bill No. 2006-20. Transitory
Ordinance No. 18.43 to vacate reserved utilitv easements in Cedar Point Commons
Redevelopment area. that it be published in the official newspaper and that it be made part of these
minutes: and that the followino resolution be adopted and that it be made part of these minutes:
RESOLUTION NO. 9856
RESOLUTION APPROVING SUMMARY
PUBLICATION OF BILL NO. 2006-20
Motion carried 3-0. This resolution appears as Resolution No. 9856.
Item #14
Mayor Kirsch presented Staff Report No. 280.
Public Works Director Eastling stated title to the property is agreed upon in principal, just
MnDOT and MAC signatures are needed.
Public Works Director Eastling said the City Council could authorize SEH to proceed with
the Option 3 design with Option 2 as an alternative for cost considerations duril'1g the bid process.
Public Works Director Eastling reviewed the budget worksheet for Options 2 and 3 and
funding sources and uses.
Nancy Schulz, SEH, discussed the budget estimates.
Council Member Sandahl asked about windows and natural lighting, the balcony on the top
floor and storage space for City Council's July 4 parade float.
Ms. Schulz explained the lighting is trying to be balanced, the balcony is one way to improve
the view for staff and to break up the long wall to give more dimension and Option 3 has space for
the float but Option 2 is more crowded so something else would need to be outside.
Council Meeting Minutes
-9-
December 12,2006
Council Member Sandahl said this building needs to be built so that it works in the future.
Public Works Director Eastling said construction management for the new garage will be
coming before the City Council at a future meeting.
George Holter, 6424 Emerson Avenue, stated it made more economical sense to him to
improve the current garage but, if a new one is going to be built on Cedar Avenue, he is very
interested in purchasing the current site and improving it for his bus company.
Mayor Kirsch said the decision regarding use of the current site will be determined later.
M/Kirsch, S/Rosenberg to select Option 3 with the Option 2 contingency and approve
purchase of architectural and engineering services from SEH for the completion of the design
development. construction document and bidding phases for the new maintenance facility at a cost
of $425.000 and reimbursable expenses in the range of $50.000 to $80.000.
Motion carried 3-0.
Item #15
Council Member Rosenberg presented Staff Report No. 281.
Rick Jabs, Chat II Chair, reviewed the Request for Proposals process, including determining
the firm to recommend, which is Wold Architects & Engineers.
Michael Cox, Wold Architects & Engineers, discussed the approach the firm uses to work
towards to goals and objectives of the community.
Council Member Sandahl said she was pleased to see that Wold seeks input from all the
users.
City Manager Devich discussed a recent burst pipe incident in City Hall's heating system.
M/Rosenberg, S/Sandahl to approve the purchase of architectural services from Wold
Architects & Engineers for preliminary design work and cost estimates for a new City Hall. Police.
Fire and Licensing Building for the City of Richfield with costs not to exceed $73.000.00.
Motion carried 3-0.
Item #16
Council Member Rosenberg presented Staff Report No. 282.
Council Meeting Minutes
-10-
December 12, 2006
George Holter, 6424 Emerson Avenue, expressed caution about spending taxpayers' money
and asked the City to pay close attention to the country's economy.
Council Member Rosenberg said the Capital Improvement Plan will be reviewed several
times.
M/Rosenberg, S/Sandahl to close the public hearina.
Motion carried 3-0.
M/Rosenberg, S/Sandahl that the followina resolution be adopted and that it be made part of
these minutes:
RESOLUTION NO. 9857
ADOPTING A CAPITAL IMPROVEMENT PLAN AND PROVIDING
PRELIMINARY APPROVAL FOR THE ISSUANCE OF BONDS THEREUNDER
Motion carried 3-0. This resolution appears as Resolution No. 9857.
Item #17
Council Member Sandahl presented Staff Report No. 283.
City Attorney Thomson explained that of the five properties identified, only one is to be
acquired in its entirety (6544 Portland Avenue); the other four are partial takings.
Mayor Kirsch said this is the beginning of the process.
City Attorney Thomson stated the condemnation petition will be filed within a month but that
does not end discussions and negotiations.
M/Sandahl, S/Rosenberg that the followina resolution be adopted and that it be made part of
these minutes:
RESOLUTION NO. 9858
AUTHORIZING EMINENT DOMAIN PROCEEDINGS
TO ACQUIRE CERTAIN PROPERTY
FOR STREET RECONSTRUCTION AND OTHER PUBLIC PURPOSES
Motion carried 3-0. This resolution appears as Resolution No. 9858.
Council Meeting Minutes
-11-
December 12, 2006
Item #18
Council Member Rosenberg presented Staff Report No. 284.
M/Rosenberg, S/Sandahl that the following resolutions be adopted and that they be made part
of these minutes:
RESOLUTION NO. 9859
RESOLUTION ESTABLISHING WASTEWATER SERVICE RATES AND CHARGES, WATER
RATES AND CHARGES, SPECIAL WATER SERVICE CHARGES, STORM SEWER RATES AND
CHARGES, AND 6.5% PENALTY ON PAST DUE ACCOUNTS
RESOLUTION NO. 9860
RESOLUTION AUTHORIZING REVISION OF 2006 BUDGET OF VARIOUS DEPARTMENTS
RESOLUTION NO. 9861
RESOLUTION AUTHORIZING BUDGET REVISIONS
RESOLUTION NO. 9862
RESOLUTION AUTHORIZING ADJUSTMENT TO CITY'S MILEAGE
REIMBURSEMENT RATE TO CONFORM TO INTERNAL REVENUE SERVICE STATUTORY
MILEAGE REIMBURSEMENT RATE
RESOLUTION NO. 9863
RESOLUTION RELATING TO PURCHASING PRACTICES IN THE CITY OF RICHFIELD
AMENDING RESOLUTION NO. 8298
RESOLUTION NO. 9864
RESOLUTION ADOPTING THE 2008-2011 CAPITAL IMPROVEMENT PROGRAM
RESOLUTION NO. 9865
RESOLUTION ADOPTING THE 2007 CAPITAL IMPROVEMENT BUDGET
RESOLUTION NO. 9866
RESOLUTION ADOPTING A PROPOSED BUDGET AND TAX LEVY
FOR THE YEAR 2007
RESOLUTION NO. 9867
RESOLUTION RELATING TO THE 2007 GENERAL SERVICES
SALARY COMPENSATION PLAN
RESOLUTION NO. 9868
RESOLUTION RELATING TO THE 2007 GENERAL SERVICES
MID-YEAR SALARY COMPENSATION PLAN
RESOLUTION NO. 9869
RESOLUTION RELATING TO THE 2007 MANAGEMENT
SALARY COMPENSATION PLAN
RESOLUTION NO. 9870
RESOLUTION RELATING TO THE 2007 SPECIALIZED PAY PLAN
Council Meeting Minutes
-12-
December 12, 2006
RESOLUTION NO. 9871
RESOLUTION RELATING TO THE 2007 SPECIALIZED PAY PLAN
MID-YEAR ADJUSTMENT
RESOLUTION NO. 9872
RESOLUTION ESTABLISHING 2007 LICENSE, PERMIT AND MISCELLANEOUS
FEES PURSUANT TO THE PROVISIONS OF APPENDIX D OF THE
ORDINANCE CODE OF THE CITY OF RICHFIELD
RESCINDING RESOLUTION NO. 9694
Council Member Sandahl stated the gross tax levy for 2007 is a .48% increase due to an
unexpected Local Government Aid (LGA) allocation from the State. There is no guarantee an
allocation will happen next year.
Council Member Rosenberg stated this budget includes the possibility of no LGA next year.
She added the budget is prudent, sparse and disciplined. '
Motion carried 3-0. These resolutions appear as Resolution No. 's 9859 through 9872.
Item #18A
M/Sandahl, S/Rosenberg to include on the January 2. 2007 Special City Council meetinQ
aQenda. the discussion of selectinQ a facilitator for the 2007 City Council/staff QoalsettinQ session.
Motion carried 3-0.
Item #188
Council Member Sandahl asked about the process used when deadlines for stipulations for
an off-street parking permit are missed as appears to be the situation for EI Jalapeno Market, 1430
East 66th Street.
Community Development Director Palmborg explained the process to review performance
deadlines and compliance checks. If non-compliance continues, it is referred to legal counsel which
has been happening. There are other City departments that have issues.
City Attorney Thomson clarified legal action in this instance refers to criminal prosecution.
The standard process is followed including multiple notifications. If the City Council wants to defer
this item to a meeting in January to gather more information, the City Council may provide direction to
defer action on the criminal prosecution if the deadlines are extended.
Community Development Director Palmborg reviewed the notification from staff in October
and November to Martin Costello, the City's prosecuting attorney, requesting prosecution for non-
compliance. A court date was set for today regarding the initial non-compliance items and non-
compliance with the fire code issues.
Council Meeting Minutes
-13-
December 12, 2006
Fire Services Director Sveum discussed the fire code issues. Periodic fire inspections are
conducted on commercial businesses and violations were found regarding insulation and fire orders
were written. Non-compliance was found upon a follow-up inspection. The typical process was
followed and turned over to the prosecuting attorney. .
Mr. Frost stated he's not saying the issues are not important, but he is requesting additional
time to get them done. The' Bloomington Health Department is requesting inside work be done
sooner than the outside work. He said the health of customers is more important than landscaping.
M/Sandahl, S/Rosenberg to discuss at the January 9 ReQular Citv Council meetinQ, the non-
compliance issues and request by Mr. Frost for an extension on the conditional use permit
stipulations deadline for EI Jalapeno Market. Mr. Frost should be prepared to show why the
deadlines extended and City staff should provide the process followed and notifications made. Both
parties should try to reach a resolution to brinQ to the City Council.
Mr. Frost stated the court proceeding today was continued on the fire code issues because
his lawyer is handling it. The zoning issues are before the court on January 2 but he will ask for a
continuation.
City Attorney Thomson stated if the City Council indicates Mr. Frost's request will be
considered on January 9, staff can inform Mr. Costello and he may want to wait.
City Manager Devich stated there are fire issues, building inspection issues and community
development issues. Many are not onerous requirements but have simply not been done. Staff
believes better cooperation is needed from the owner.
Motion carried 3-0.
Item #19
None.
Item #20
M/Rosenberg, S/Sandahl that the followinQ claims and payrolls be approved:
U. S. BANK
AlP Checks: 155164"' 155574
PAYROLL 35664 - 35990; 41232- 41235
TOTAL
$ 1,007,333.19
$ 500,147.12
$ 1,507,480.31
Motion carried 3-0.
Council Meeting Minutes
-14-
December 12, 2006
The City Council meeting Was adjourned by unan"m
.
I
Date Approved: January 9, 2007
~((V~
Cheryl Kr mholz
Recording Secretary