06-25-02 Regular
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CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Meeting
June 25, 2002
The meeting was called to order by Mayor Kirsch at 6:30 p.m.
Members Present:
Martin Kirsch, Mayor; Susan Rosenberg; John Enger; Gertrude Ulrich; and
Sue Sandahl.
Staff Present:
Samantha Orduno, City Manager; Steven Devich, Administrative Services
Director; Tom Foley, Transportation Engineer; Bruce Nordquist, Housing
and Redevelopment Manager; Jim Topitzhofer, Recreation Services
Director; Dan Scott, Public Safety Director; Chris Regis, Finance Manager;
Cheryl Krumholz, Recording Secretary; and Corrine Thomson, City
Attorney.
Larry Wozniczka, 6744 Wentworth Avenue, requested an opportunity to comment on the
Comprehensive Annual Financial Report (CAFR).
Mayor Kirsch stated the CAFR item on tonight's agenda is not a public hearing. The Mayor
suggested Mr. Wozniczka contact Steve Devich, Administrative Services Director, or Chris Regis,
Finance Manager, with his comments.
Mr. Wozniczka requested information related to Tax Increment Financing (TIF) projects. He
asked about the tax capacity rate for the Best Buy project because of the revised formula for
calculating the rate and in light of the recent Supreme Court ruling. He stated that he believed the
discussion related to the impact from the loss of TIF for the Best Buy project to be shielded from
public information under the guise of attorney client privilege.
Mr. Wozniczka provided the City Manager with a copy of his statement.
Mayor Kirsch led the audience in the Pledge of Allegiance.
Council Meeting Minutes
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June 25, 2002
Council Member Sandahl requested her abbreviated statement on page 15 of the June 11,
2002 minutes, Item 10, fourth paragraph from the end of the item, be revised to read: "Council
Member Sandahl stated that she had reviewed the public versus private benefit for the City Bella
project and believes that the public benefits far out weigh the private benefits."
M/Rosenberg, S/Sandahl to approve the minutes of (1) Special City Council Meetinq of
June 8, 2002 and (2) Reqular City Council Meetinq of June 11, 2002 as amended.
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Motion carried 5-0.
Item #1
Council Member Rosenberg read and presented a proclamation designating Women of Today
Founders Day, July 1,2002 to Michele Thompson, Connie McDonald and Ann Hanson. She
acknowledged Ms. Thompson's recent election as president of the United States Women of Today
and Ms. Hanson's position as President of the Richfield Women of Today.
Item #2
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Finance Manager Regis introduced this agenda item and Tom Hodnefield, Principal, HLB
Tautges Redpath, Ltd. Mr. Hodnefield described the three audit reports and presented a summary of
the audit findings and the state of the City's financial status.
Mr. Hodnefield highlighted several specific issues for City Council attention in the Executive
Summary, Financial Analysis and Management Consideration. Mr. Hodnefield said the 2001 State
Legislature mandated all cities to file an annual report regarding municipal development and
construction fees.
City Manager Orduno asked Mr. Hodnefield if these were unfunded mandates.
Mr. Hodnefield said yes.
City Manager Orduno requested an opportunity for the City Attorney to respond immediately
to one of Mr. Wozniczka's earlier statements.
City Attorney Thomson stated the comment regarding the City's withholding of the impact of
the loss of TIF for the Best Buy project under the guise of attorney-client privilege was a
misstatement. She said, to her knowledge, the City has not withheld any information classified as
public data under the guise of attorney-client privilege. She believed it was important for the public to
be made aware of this clarification.
Item #3
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City Attorney Thomson reported the Supreme Court's recent order denying to review the
Nordmarken, et al. v. City of Richfield referendum petition. She said the Court of Appeals decision
supporting the City stands as law of the State.
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Council Meeting Minutes
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June 25, 2002
Council Member Sandahl stated a City Council Worksession had been held last night and
there was considerable discussion regarding development and the use of TIF as a financing tool.
She presented several photos of the redeveloped east side and the 50-year unchanged west side of
the 7600 block of Lyndale - the use of TIF versus no use of TIF. She said the developments using
TIF encourage others, residential and commercial, in the neighborhood to invest and develop their
property.
Council Member Rosenberg stated the Richfield Rediscovered housing program encourages
others to improve their homes. She said the program uses TIF.
Council Member Rosenberg read a prepared statement to be submitted for publication in the
Star Tribune in response to the June 24 commentary entitled, "No Minnesota property is safe, thanks
to the court." She requested staff to submit the statement under her name to the Star Tribune.
Council Member Rosenberg said that as a result of her vote at the last City Council meeting
on the City Bella TIF District, she had received many phone calls from residents and not one of them
understood TIF. She said the community needs to be educated again on TIF. She also clarified a
statement made at the last City Council meeting by a resident regarding the Mall of America as a 10-
year TIF District. She said Larry Lee, City of Bloomington Community Development Director,
reported that the Mall of America is in a 25-year TIF District that expires in 2013.
City Manager Orduno said a video explaining TIF will be prepared and presented to the City
Council and then used for presentation at other organizations' meetings.
Council Member Sandahl encouraged anyone who has questions or hears rumors on what
the City is doing to contact either the City Councilor City staff for clarification.
Council Member Rosenberg clarified a rumor that the City Council Members had asked
Council Member Enger to not ride on the City Council float in the July 4 parade. She said Council
Member Enger is choosing to ride separately in the parade.
Council Member Ulrich said she had recently attended a Metropolitan Airport Commission
(MAC) meeting regarding airport noise and was encouraged to see other communities, such as St.
Paul, becoming finally involved in this issue.
Council Member Enger invited Pat Rickert, Fourth of July Committee Chair, to address the
City Council regarding July 4 activities and events.
Pat Rickert thanked the City and community for their support and announced several events
occurring during June 27 through July 6.
Mayor Kirsch encouraged residents tc volunteer for the Fourth of July Committee.
The City Council thanked Mr. Rickert and the committee for their efforts.
Item #4
M/Ulrich, S/Rosenberg to approve the aqenda.
Motion carried 5-0.
Council Meeting Minutes
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June 25,2002
Item #5
A. Approved resolution declaring adequacy of petition for alley vacation for 6300 blocks of
Colfax and Dupont Avenues and first reading of transitory ordinance to vacate alley and
schedule public hearing on August 13,2002 S.R. No. 155
RESOLUTION NO. 9199
RESOLUTION DECLARING ADEQUACY OF PETITION FOR
VACATION OF AN ALLEY AND
CALLING FOR A PUBLIC HEARING
ON THE REQUEST TO VACATE AN ALLEY
This resolution appears as Resolution No. 9199 in Resolution Book NO.7 4.
B. Approved community celebration event and temporary on-sale 3.2 percent malt liquor
licenses, with fee waiver, for Fourth of July Celebration Committee for annual events on June
27 through July 6, 2002 S.R. No. 156
C. Approved itinerant place of amusement and itinerant food licenses for Church of St. Peter,
6730 Nicollet Avenue, annual Fall Festival on October 4 through 6,2002 S.R. No. 157
D. Removed from the consent calendar and placed on the regular agenda for consideration as
Item. 6.
Council Member Sandahl asked to remove Item 50 from the Consent Calendar and place it
on the regular agenda.
Mayor Kirsch removed Consent Calendar Item 50 and placed it on the regular agenda as
Item 6.
M/Enger, S/Rosenberg to approve the Consent Calendar as amended.
Motion carried 5-0.
Item #6
Council Member Sandahl asked if the American Legion dance on July 3 was outside and if
it would be a conflict with the Fourth of July Committee street dance that same evening.
Public Safety Director Scott said the American Legion dance had been held previously.
Pat Rickert, Fourth of July Committee Chair, said this was the third year for the committee's
street dance and he was not aware if the Legion's dance was outside. He said there is close
cooperation with the committee and Legion and does not believe there is a problem.
M/Sandahl, S/Rosenberg to approve the temporary on-sale 3.2 percent malt liquor and
itinerant food licenses for the Minneapolis-Richfield American Leqion Post 435, 6501 Portland
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Council Meeting Minutes
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June 25, 2002
Avenue, for activities scheduled to take place on July 3 and 4, 2002; and if there is a conflict, this
request will be reviewed differently next year.
Motion carried 5-0.
Item #7
City Manager Orduno reviewed Staff Report No. 159 regarding a request from searchlight
companies seeking re-examination of the City's ordinance related to prohibition of searchlights in
Richfield.
Public Safety Director Scott stated the FAA and MAC had been contacted regarding the
use of searchlights and explained their use restrictions near the airport. He said the MAC requests
searchlights not be allowed within five to six miles of the airport. He said the entire City limits of
Richfield are within five miles of the airport and recommended no change to the City's ordinance
prohibiting searchlights because of safety issues.
Council Member Enger said he has seen searchlights operated in Minneapolis that is within
the five-mile radius of the airport. He asked if the five-mile radius restriction is law.
Public Safety Director Scott said the restriction is a FAA and MAC request. He said Edina
prohibits searchlights and Bloomington requires a permit for searchlight use, but is considering
prohibiting searchlight use.
Ronald Roth, Sky Tracker Promotions, stated the FAA/MAC response to searchlight use is
a matter of interpretation. He said he has never had a problem with the airport; he said all the
airport requests is to communicate to them when and where the searchlights would be used. He
believes the notification is no different than for a fireworks display. He said he had hoped for a
meeting with staff prior to tonight's meeting, but was unsuccessful.
Council Member Rosenberg asked Mr. Roth if he had received any requests from Richfield.
She asked if he would agree to shutdown the operation if there was a problem.
Mr. Roth said he had received requests from Richfield. He said the operation would be
shutdown, but there had never been a shutdown as a result of a FAA request.
Mayor Kirsch said the hours the searchlight was used could be addressed in an ordinance.
Council Member Ulrich asked Mr. Roth why he believed it important for him to be contacted
before the airport.
Mr. Roth said he understood a meeting with staff would occur before this matter was
presented to City Council for consideration.
Council Member Ulrich suggested staff contact other cities regarding searchlight
restrictions, locations and timeframes and that the MAC restrictions be clarified. She also
suggested a Worksession to discuss this matter in more detail.
Council Member Sandahl said her initial reaction is to not jeopardize safety, but it appears
searchlight use had been approved by MAC.
Council Member Enger said the FAA would object to placing searchlights directly under
flight paths.
The City Council directed staff to gather additional information regarding searchlight use
and schedule further discussion at a future Worksession.
Council Meeting Minutes
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June 25, 2002
Item #8
City Manager Orduno reviewed Staff Report No. 160 regarding an amendment to
Resolution No. 8808 which specifies certain improper conduct of on-sale intoxicating liquor, wine
and 3.2 percent malt liquor licensees and recommended discipline.
Public Safety Director Scott reviewed the alcohol discipline options currently and proposed
alternatives, and the Step Back option. He said the Step Back option provided establishments
some incentive to remain in compliance. He said the maximum fine is $2,000.
City Attorney Thomson clarified that license revocation is for the remaining current license
year, not 365 days from revocation. She said under the current ordinance, if an establishment re-
applied for a license after revocation, it would be considered a new application and all
requirements must be met. She said if a liquor license is revoked, another license cannot be
obtained for five years.
Council Member Enger asked about the timeframe between offenses.
Public Safety Director Scott reviewed the timeframes and that the City Council could
shorten the time if so desired.
Council Member Enger asked about the fourth offense revocation hearing.
City Attorney Thomson clarified the intent of the fourth offense and the revocation hearing
as a discussion of alternatives to correct the situation, but if the licensee is uncooperative. the
license could be revoked.
Council Member Sandahl said that the first offense should be strong enough to get the
licensee's attention and not encourage them to sell illegally again - increase from a three-day to a
five-day suspension and increase the fine from $750 to $1,000. She said the first and second
offense should be somewhat less severe, but the third and on more severe. She asked about the
timeframe for establishments to clean their record.
Public Safety Director Scott explained the proposed time limit between offenses. He said if
an establishment does not fail two consecutive compliance checks, they would step back one level
from their current level, not all the way back to the first offense level.
M/Sandahl, S/Rosenberg that staff prepare and present for City Council consideration on
July 9. an amended resolution specifyinq certain improper conduct of on-sale intoxicatinq liquor,
wine and 3.2 malt liquor licensees and statinq recommended discipline as follows:
First offense - five-day suspension and $1000 fine
Second offense - seven-day suspension and $1.750 fine (if within one year of first offense)
Third offense - twelve-day suspension and $2.000 fine (if within 2 years of second offense)
Fourth offense - revocation hearinq and $2.000 fine (if within 2 years of third offense)
Fifth offense - revocation for remaininq current license year and $2.000 fine includinq the
Step Back Policy
Motion carried 5-0.
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Council Meeting Minutes
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June 25, 2002
Item #9
Mayor Kirsch stated due to a vacancy on the Planning Commission, a Special City Council
meeting had been held prior to tonight's City Council meeting to interview four applicants who were
not appointed to the Planning Commission during the earlier annual commission recruitment.
Council Member Sandahl said all four applicants were excellent candidates, but only one
could be appointed.
Council Member Ulrich encouraged the other three applicants to apply for other
organizations in the City.
M/Sandahl, S/Ulrich to appoint Kyle Hartnett to fill a mid-term vacancy on the Planninq
Commission that expires on January 31, 2005.
Motion carried 5-0.
Item #10
M/Rosenberg, S/Sandahl that the followinq claims and payrolls be approved:
RICHFIELD BANK & TRUST CO.
I NT Checks: 115390- 115420
H/C 116606 - 116927
PAYROLL 30480 - 30667
TOTAL
$ 94,799.34
$ 1,175,087.02
$ 501,348.35
$ 1,771,234.71
Motion carried 5-0.
No one addressed the City Council.
The Regular City Council meeting was adjourned by unanimous onser)J'l 8:42 p. .
Date Approved: July 9. 2002 ~
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