08-13-02 Regular
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CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Meeting
August 13, 2002
The meeting was called to order by Mayor Kirsch at 6:37 p.m.
Members Present:
Martin Kirsch, Mayor; Susan Rosenberg; Gertrude Ulrich; John Enger; and
Sue Sandahl.
Staff Present:
Samantha Orduno, City Manager; Steven Devich, Administrative Services
Director; Bruce Palmborg, Community Development Director; Tom Foley,
Acting Public Works Director; Dan Scott, Public Safety 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/Sandahl to approve the minutes of (1) Special City Council Meetinq of July 17.
2002; and (2) Reqular City Council Meetinq of July 23. 2002.
Motion carried 5-0.
Council Member Ulrich stated she believes the City Council minutes are too lengthy and
based upon budget discussions the previous evening with staff reductions and doing less with less,
she suggested changes to the minutes. She said there is adequate space in the Chamber for people
to attend the meeting, the meeting is cable cast live and rebroadcast, audio tapes are made of
meetings and the Sun Current coverage is provided.
Council Meeting Minutes
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August 13, 2002
M/Ulrich, S/Sandahl that hereafter the Richfield City Council minutes will include only
essential information, to include:
1. Time, date, location, Council Members and staff in attendance.
2. Record of motions made and subsequent action taken.
3. Number of votes cast pro or con.
Number of abstinence and the reason for the abstinence.
4. In case of roll call vote, name and vote of each Council Member.
5. Record of actiones) taken reqardinq referrals to staff.
Council Member Rosenberg asked if the conversation type information, questions and
answers, would be omitted.
Council Member Ulrich said if the City Council wanted additional information included in the
minutes, a copy could be provided to the Recording Secretary.
City Attorney Thomson stated disagreement with the motion based upon a need for
developing a history on an issue during litigation. She added that the Records Retention schedule
requires audio tapes to only be retained for one year; this leaves only the minutes and memory of
participants. She said the minutes were very helpful as currently written.
Council Member Ulrich reluctantly withdrew the motion.
Council Member Sandahl agreed to the withdrawal of the motion.
Item #1
Ross Thorfinnson, consultant for the 1-494 Corridor Commission, reported on the new creation
of MOVE, its purpose, how it relates to and will work with the 1-494 Corridor Commission and the on-
going role of Richfield in the commission.
Council Member Rosenberg asked who represented Richfield on the Corridor Commission.
Mr. Thorfinnson said Council Member Sandahl and City staff member Bruce Sylvester.
Council Member Ulrich said the Met Council worked on a similar project in the 1980's and
hoped the commission would use their previous initiatives.
Council Member Sandahl said Richfield automatically becomes a MOVE member because of
their membership in the Corridor Commission.
Mayor Kirsch said the City Council would need to designate a voting member on MOVE.
City Manager Orduno said the designation would be a future City Council agenda item.
Mayor Kirsch thanked Mr. Thorfinnson for his work with the commission.
Item #2
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Sid Inman, Ehlers and Associates, Inc., presented the annual HRA tax increment district I
report. He stated the HRA is in a good financial status and in a position to meet debt obligation. He
said the update is late due to massive changes in State property tax law and the interpretation from
the Department of Revenue. Mr. Inman recommended:
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Council Meeting Minutes
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August 13. 2002
. Decertification of the Lyndale/Hub/Nicollet (LH~) district. He said putting the district back
on tax rolls would add a sig1iificant pool of money to the City, County and school taxing
jurisdictions.
. Permanently fixing rates on Richfield Rediscovered bonds.
Council Member Rosenberg said the City Council is criticized for using Tax Increment
Financing (TIF), but the retiring of the LHN is an example of the City having foresight long ago to use
this tool so the City did not spiral downward.
Council Member Sandahl said the taxpayers were willing to wait 25-years ago and build a
future for the next generation.
Council Member Ulrich acknowledged the people who were committed to the process in the
early days, placing Richfield in the forefront with suburban redevelopment.
Mayor Kirsch thanked the people for their courage to use TIF as the new tool for
redevelopment. He said using TIF made Richfield's closed borders with no room for expansion equal
with the open land areas.
Council Member Enger asked what the projected taxes are when the LHN retires. He also
asked if the district length was 25-years.
Mr. Inman said approximately $400,000 will be returned to Richfield as annual property tax
revenue. He said the amount is subject to levy limits. He stated the length of district was not
restricted because it was before 1979, when the Legislature set terms.
Council Member Enger asked if the district length had been extended from a previous
expiration date.
City Manager Orduno said the LHN District did not have an expiration date.
Council Member Enger asked what was the next oldest financing district.
Mr. Inman said the lnterstate/Lyndale/Nicollet District would expire in 2011.
Mayor Kirsch said the Cedar Avenue Business Area economic district expired two years ago.
M/Ulrich, S/Rosenberg to accept the Richfield HRA's annual tax increment district status
update.
Motion carried 5-0.
Item #3
Dave Delzer, Friendship City Commission Chair, reported on the Friendship City Commission
past year activities and upcoming events.
Mayor Kirsch thanked Mr. Delzer and the commission for maintaining Richfield's friendship
city relationship with Heredia, Costa Rica.
Item #4
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FJ~ROCL6.MAfION DES'IGNATIN
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Council Meeting Minutes
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August 13, 2002
Mayor Kirsch read the proclamation designating September 2002 as Pedestrian Safety Month
in Richfield.
Council Member Ulrich encouraged people to be pedestrians.
Mayor Kirsch requested a Special City Council meeting notice be prepared for August 28 at
6:30 p.m. at Mt. Calvary Lutheran School to discuss airport issues. He asked staff to notify the
neighborhood of Cedar to Bloomington Avenues and 63rd to 66th Streets of this meeting.
Council Member Rosenberg asked who called this meeting.
Mayor Kirsch said he did.
Council Member Ulrich requested a Special City Council meeting notice be prepared for the
Chamber of Commerce meeting on August 28 at 12:00 noon at the American Legion.
Council Member Enger read a statement related to the July 23 City Council meeting. He
said Mayor Kirsch recognized Council Member Ulrich and permitted her to speak at the end of the
meeting, but did not recognize him to speak at the end of the meeting. He requested a public
apology at this meeting from Mayor Kirsch. Mr. Enger said there is a disturbing trend in meetings
regarding public comment and speaking for political gain. He also believed it presumptuous of
staff to prepare the Quick Facts and Fact/Fiction on Richfield Redevelopment information pieces
without City Council approval. Mr. Enger stated he does not want his name associated with either
piece.
M/Enger that we, members of the Richfield City Council, hereby affirm our position that
Council Members are entitled to equal opportunity to address issues before the City Council and
hereby direct that City resources shall not be used for political purposes.
Motion failed due to lack of second.
Mayor Kirsch apologized to Council Member Enger for failing to recognize him to speak at
the City Council meeting. He said the pieces referenced by Council Member Enger were
distributed to the City Council in the Chambers prior to the National Night Out activities. He said
staff did a good job in trying to set the record straight on the misinformation out in the community.
Council Member Enger accepted Mayor Kirsch's apology.
Council Member Ulrich said she found Council Member Enger out of line, inappropriate,
divisive and creating an inexcusable scene. She expressed anger regarding her name mentioned
in Mr. Enger's statement.
Council Member Rosenberg asked Council Member Ulrich to clarify if her comment
regarding use of her name meant she wanted it removed from the information pieces.
Council Member Ulrich said no, she meant only the use of her name in Mr. Enger's
comments.
Council Member Enger restated his motion. (The restated motion did not receive a
second.)
Council Member Sandahl stated she did not second Council Member Enger's motion not
because she does not agree that all Council Members should be able to speak, but rather because
she does not believe the two pieces referenced were campaign pieces. She said Council Member
Enger's motion implied that if the City Council voted for his motion it meant they believe with him
that the pieces are lies. She said staff is trying to present factual information to the public because
so much is inaccurate out in the community.
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Council Meeting Minutes
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August 13, 2002
Council Member Enger referenced several Fact vs Fiction on Richfield Redevelopment
items that he believed were inaccurate. .,;He said the facts need to be straight if they are to be
called facts.
Council Member Ulrich reported on a roundtable discussion with Senator Mark Dayton's
office and Minneapolis officials and staff. She said discussion included how to redevelop the
Cedar Avenue area in Richfield and housing issues. She said Senator Dayton would work closely
with Congressman Sabo for federal and state assistance.
Council Member Ulrich said the August 5 Nations Cities Weekly included an article about
getting serious about housing and she suggested some of the initiatives be part of the City's
Legislative Initiatives and Policies.
Council Member Enger stated the City's preliminary budget was presented to the City
Council last night. He said that staff stated the City could lose more or less than $1.3 million in
Local Government Aid (LGA) in 2003, but that the final figures would not be available for two more
weeks. He said he called the Department of Revenue and was told LGA may increase for 2003
and the figures were available on July 10.
City Manager Orduno said that some information has been received from the Department of
Revenue, LMC, and AMM, but nothing final on the City's levy limit had yet been received. She
stated that LGA is likely to be cut with the State facing a deficit. She said the City has yet to
receive the levy limit amount and fiscal disparity distribution from the State and County. Ms.
Orduno said it is not prudent to tell the City Council to not face potential cuts. She said the gross
levy would decrease 1/2% with the budget including enormous decreases so good City services
can still be provided without burdening the taxpayers.
Mayor Kirsch said the City Manager and Department Directors are to be commended for
their work on the budget. He said at last night's Worksession there was a request for City staff to
have the Charter Commission review the budget process to coincide with the State budget
process. He said numbers have been uncertain up to this point because different numbers are
received every day.
M/Ulrich, S/Rosenberg to direct staff to request the Richfield Charter Commission to
resume the updatinq of the Richfield City Charter. so as to brinq the Charter into compliance with
State law. with particular reference to the timinq of the presentation of the annual City budqet to the
Richfield City Council.
Council Member Enger asked Council Member Ulrich what date she recommended for the
budget presentation to the City Council.
Council Member Ulrich said, as informal City Council liaison to the Charter Commission,
she would bring any City Council suggestions to the commission for discussion.
Council Member Enger asked if most cities present the budget to the City Council in
August.
City Manager Orduno said cities conduct the budget presentation differently. She explained
the various budget processes used by cities.
Council Member Ulrich said her motion's intent is to bring the City Charter in line with State
law, not to necessarily change formal presentation dates. She said the City Council could study
the budget every month if so desired.
City Manager Orduno said the City Council strategic planning session in January provides
direction to staff and the Worksession gives guidance to staff to confirm that they are going in the
right direction.
Council Member Sandahl stated support for the motion and requested Council Member
Ulrich to remind the Charter Commission of issues in the past still needing review.
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August 13, 2002
Council Member Enger said he saw nothing wrong with last night's budget presentati~n..
He said the City Council needs as much time as possible to find ways to save money. He said If
the budget review is delayed to September, there is not adequate time for review.
Mayor Kirsch said Worksess!ons on th~ budget could be held any time. He s~id people
might have the perception that st.aft IS not gett!ng the numbers for the budget, but until a complete
package is received, the budget IS only an estimate.
Council Member Enger asked how many Worksessions had been held on this budget.
Mayor Kirsch said last night was the first and it is staff's responsibility to schedule a
Worksession when the budget is prepared.
Council Member Ulrich called the question.
City Manager Orduno said staff begins working on the budget in April and more
Worksessions can be held per City Council direction.
Mayor Kirsch said budget direction is provided at the January City Council/staff goal setting
session.
Motion carried 4-1. (Enger opposed.)
Council Member Enger reported on the City of St. Paul budget process which has a 0%
increase for the 9th consecutive year. He said modest tax increases every year are to be expected,
but Richfield's 21.2% levy in 2002 is horrific. He said if the levy had been raised slightly more over
the years, there wouldn't be such a high increase in 2002.
Mayor Kirsch said the tax rate has been consistent, but 2002 was different because of the
State's shift to the school district, which has been explained many times. He said there were no other
alternatives if current City services were to continue.
Council Member Ulrich asked for the discussion to move forward. She said the Sun Current
should note that Council Member Enger supports increasing taxes.
Council Member Enger clarified that tax increases should be modest and everyone expects it.
He said a level budget needs to be maintained.
Council Member Rosenberg asked Council Member Enger if he wanted his name removed
from the fact information pieces.
Council Member Enger said yes.
Council Member Rosenberg stated the fact sheets were truths, not political ads. She said she
has been involved in the Interchange West project from the beginning and believes the City Council
acted prudently and responsibly.
Council Member Rosenberg addressed rumors in the community including rental housing as a
new idea for the City and the City needing to help pay for City Bella units because it is a 25-year TI F
project. She said rental housing in Richfield has been 1/3 of housing since 1970. She said the buyer
of the City Bella unit pays for it and no property owner in Richfield pays anything towards a City Bella
unit. She said National Night Out was wonderful and every neighborhood said theirs was the best.
She also stated redevelopment of Richfield's perimeter helps neighborhoods remain strong.
City Manager Orduno thanked, on behalf of staff, the National Night Out groups that
participated and made them feel welcome.
Council Member Sandahl said she was asked on Night Out about Best Buy paying taxes.
She reviewed the estimated 2004 payable taxes for Best Buy resulting in a total of $8.4 million. She
said if the properties had not changed, the taxes payable would be $700,000.
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Council Meeting Minutes
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August 13, 2002
Item #5
M/Rosenberg, S/Sandahl to approve the aqenda.
Motion carried 5-0.
Item #6
A. Approved resolution designating polling places and appointing election judges for September
10, 2002 Primary Election and November 5, 2002 General Election S. R. No. 196
RESOLUTION NO. 9222
RESOLUTION DESIGNATING POLLING PLACES AND APPOINTING ELECTION JUDGES FOR
THE STATE PRIMARY ELECTION OF SEPTEMBER 10, 2002 AND THE GENERAL ELECTION
OF NOVEMBER 5, 2002
This resolution appears as Resolution No. 9222 in Resolution Book No. 74.
B. Approved canceling Regular City Council Meeting of Tuesday, August 27, 2002; and
rescheduling Tuesday, September 10, 2002 Regular City Council Meeting to Thursday,
September 12, 2002 SR. No. 197
C. Approved Letter of Understanding with League of Minnesota Cities for participation in
development of National Pollution Discharge Elimination System Phase II Storm Water
Guide Plan in amount of $5,000 S.R. No. 198
D. Approved two-year printer services agreement with Artcraft Press for printing Your City
newsletter in amount of $23,730 annually S. R. No. 199
E. Approved new motel license for ELR Hospitality, Inc., d/b/a Americlnn Motel & Suites, 1200
East 78th Street S.R. No. 200
F. Approved commercial kennel license renewal for Petco Animal Supplies, Inc., 710 West 66th
Street S.R. No. 201
G. Approved multi-animal residential license renewals:
. 7201 Logan Avenue; three dogs S.R. No. 202
. 6430 Logan Avenue; four cats S.R. No. 203
M/Rosenberg, S/Ulrich to approve the Consent Calendar.
Motion carried 5-0.
Item #7
None.
Council Meeting Minutes
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August 13, 2002
Item #8
City Manager Orduno reviewed Staff Report No. 204 regarding a Transitory Ordinance
vacating the unimproved north-south alley in the 6300 block of Colfax and Dupont Avenues.
Community Development Director Palmborg reviewed the history regarding vacating the
alley.
The abutting owners who were present at the meeting included:
. Ray and Hazel Arhndt (owners of both 6304-6308 Colfax Avenue (duplex) and
occupants of 6308 Colfax Avenue).
. Jan Anderson (renter/occupant of 6304 Colfax Avenue).
. Ray Coleman (6300 Colfax Avenue).
. George and Marilyn Holter (live at 6424 Emerson Avenue, owners of 6305 Dupont
Avenue).
M/Rosenberg, S/Ulrich to close the public hearinG.
Motion carried 5-0.
M/Ulrich, StEnger that this constitutes the Second ReadinG of Bill No. 2002-21, Transitory
Ordinance No. 18.17 vacatinq the unimproved north-south alley in the 6300 block of Colfax and
Dupont Avenues, that it be published in the official newspaper and that it be made part of these
minutes.
Motion carried 5-0.
Item #9
City Manager Orduno reviewed Staff Report No. 205 regarding the issuance of new on-sale
intoxicating and Sunday liquor licenses for Taco Morelos II, Inc., at Two West 66th Street. She
said the public hearing was conducted and closed on July 23, 2002 and discussion regarding
issuance of the license was conducted at the City Council Worksession prior to tonight's Regular
City Council meeting.
Public Safety Director Scott provided the background on the liquor license request.
M/Sandahl, S/Rosenberg to approve the issuance of new on-sale intoxicatinG and Sunday
liquor licenses for Taco Morelos II, Inc., at Two West 66th Street.
Council Member Sandahl explained action to issuance the liquor licenses on July 23 was
deferred for further City Council discussion because of previous violations of alcohol sales to
minors. She stated that after the Worksession discussion, she believed the applicants and their
training consultant understand the seriousness of sales to minors.
Council Member Ulrich stated she supported issuance of the licenses based upon Lorenzo
Ariza as manager of the restaurant and his bearing the responsibility if a compliance check failure
occurs.
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Council Meeting Minutes
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August 13, 2002
Mayor Kirsch said it was disturbing to see the past violations, but with a training consultant
and restaurant manager, he trusted no,failures would occur.
Council Member Enger stated that because of three alcohol compliance failures and a
number of other personal issues, he did not support issuing the licenses.
Motion carried 4-1. (Enger opposed.)
Item #10
City Manager Orduno reviewed Staff Report No. 206 regarding traffic calming measures for
the neighborhood between 66th Street and 76th Street and Penn Avenue and 1-35W. She said the
committee represents a successful neighborhood collaborative.
Dave Davenport, Chair of the Neighborhood Advisory Committee, provided the background
related to the committee which addressed speed, safety and cut-through traffic issues in the area.
He explained the committee's proposed traffic calming measures of basket weave stop signs and
two turn restrictions at a cost of $4500. He said not everyone in the neighborhood supports these
measures. He suggested traffic counts before and after the Best Buy Campus is operational to
see if the traffic calming measures were effective and helpful.
Council Member Enger asked if the cost of $50 per stop sign included labor.
Acting Public Works Director Foley said yes.
Council Member Rosenberg stated the traffic calming plan is subject to change and asked
the opponents to give it a try.
Mr. Davenport described the process used to arrive at the proposed measures including
reviewal of traffic flow statistics. He said the committee may ask for changes, but the existing
problems and potential problems with Best Buy should be addressed.
Council Member Ulrich stated support for the committee's recommendation and said it is a
work in progress that is not too expensive.
M/Rosenberg, S/Ulrich to approve the traffic calminq measures for the neiqhborhood
between 66th Street and 76th Street and Penn Avenue and 1-35W and that traffic counts be
conducted before the completion of Best Buy and at the end of each phase of the Best Buy
buildinq occupancy.
Council Member Rosenberg encouraged increased police enforcement when the calming
measures are in place because it is a significant change in traffic flow and pattern.
Council Member Ulrich said violations are expected because if the traffic flow becomes too
difficult, the stop signs will be ignored.
Council Member Enger said the stoplight at 76th Street and Newton Avenue is not
addressed. He said he would like a recommendation from the committee on this issue. He said
straight north/south through traffic was not to be allowed and that City Council directed staff to
restrict turning to left/right only out of the Best Buy Campus. Mr. Enger stated he was not a
believer in the basket-weave stop sign system; people will avoid the area. He requested the City
Council delay a decision until results are available from the police regarding stop sign violations in
that area and that one or two more studies be conducted. He asked if stop sign violators were
from the area.
Mr. Davenport said the committee believes violators are most likely from the neighborhood.
He also said the committee supports turn restrictions at the stoplight at 76th Street and Newton
Council Meeting Minutes
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August 13, 2002
Avenue. He said if a decision by the City Council is delayed to conduct another study or until more
traffic data is received, the Committee may need to schedule another neighborhood meeting.
Council Member Enger said the neighborhood would grow to hate these traffic calming
measures.
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Council Member Rosenberg called the question.
Acting Public Works Director Foley said more traffic surveys were not conducted because
the 76th Street construction drastically affected traffic flow in the area.
Council Member Sandahl said she had mixed feelings about this issue related to the
impacts if the measures are implemented. She said City funds are used to install the calming
measures, and City funds used to remove them if the neighborhood doesn't like it.
Acting Public Works Director Foley said neighborhood impacts included additional noise, air
pollution and not stopping at every stop sign. He added that studies show the stop signs do make
safer intersections.
Council Member Enger asked about the number of accidents over a three-month period in
this area.
Mr. Foley said a residential area is easier to assess for accidents over a three to five year
period.
Mr. Davenport said overall accident numbers are relatively low. He said there are more
"near misses". He said even if people do not make full stops, at least it slows them down.
Motion carried 5-0.
Mayor Kirsch thanked the committee for all their hard work.
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Item #11
City Manager Orduno, alternate to the Joint Airport Zoning Board, provided an update on
the board's activities. She explained the need to update the ordinance to establish new airspace
zones with the final authority being the Commissioner of Transportation. She reviewed the land
use safety zones which most dramatically impact Richfield. She explained the timeline to get a
revised ordinance approved and that the ordinance is beneficial to Richfield.
Council Member Rosenberg asked if there was City Council representation on the Joint
Airport Zoning Board.
City Manager Orduno said Council Member Enger is the representative and they take turns
attending the meetings.
M/Ulrich, S/Rosenberg to move forward on the Minneapolis St. Paul zoninq ordinance
amendment.
Motion carried 5-0.
Item #12
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No report.
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Council Meeting Minutes
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August 13, 2002
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Item #13
MIRosenberg, S/Sandahl that the followinq claims and payrolls be approved:
RICHFIELD BANK & TRUST CO.
INT Checks: 115457-115479; 117576-117598
HIC 117599-117961
PAYROLL 100500 - 164100
TOTAL
$ 167,720.44
$ 1,125,328.80
$ 461,284.68
$ 1,754,333.92
Motion carried 5-0.
Mayor Kirsch commented on National Night Out activities and feedback received from
residents.
No one addressed the City Council.
The Regular City Council meeting was adjourned by unanimousconsrr. /aatt 99::1155 P Pf) '.
Date Approved: September 12. 2002 m~~ J~
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Cheryl KrumHolz sam~ OF - 0 . -
Recording Secretary City -anager