10-22-02 Regular
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CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Meeting
October 22, 2002
The meeting was called to order by Mayor Kirsch at 6:38 p.m.
Members Present:
Martin Kirsch, Mayor; Susan Rosenberg; Gertrude Ulrich; John Enger; and
Sue Sandahl.
Staff Present:
Steven Devich, Acting City Manager; Bruce Palmborg, Community
Development Director; Mike Eastling, Public Works Director; Kevin
McGinty, Fire Services Director; Dan Scott, Public Safety Director; Chris
Regis, Finance Manager; Cheryl Krumholz, Recording Secretary; and
Paula Callies, Acting City Attorney.
Robert Hall, 7309 Oliver Avenue, asked the City Council to consider traffic flow options,
including an arrow, for traffic turning left from northbound Portland Avenue onto westbound 66th
Street. He said the intersection as it is now, is dangerous.
Public Works Director Eastling said Hennepin County tallies traffic data from metro
intersections to rank safety and Portland Avenue/66th Street is ranked as one of the worst three
intersections. He said caution needs to be exercised to not introduce a change that could make
the intersection worse.
Mayor Kirsch asked staff to review the 66th Street/Portland Avenue intersection and
provide options for City Council consideration.
Council Member Rosenberg explained that one of the reasons for not televising the City
Council Open Forum, included when a speaker addresses the City Council, often making
inaccurate statements and the City Council is not provided with an opportunity to respond. She
said this leaves cable viewers with an impression that the speaker's comments are accurate.
Council Member Rosenberg specifically referenced comments made by Larry Wozniczka at
the October 8, 2002 City Council meeting during the Open Forum related to his belief that tax
information being circulated pertaining to the Interchange West, Best Buy Project, is inaccurate.
She also requested Mr. Wozniczka apologize to the Sue Sandahl campaign because of his
statement that the campaign was distributing inaccurate information.
Council Meeting Minutes
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October 22, 2002
Larry Wozniczka, 6744 Wentworth Avenue, thanked the City Council for providing him with
Interchange West costs. He went on to explain how he arrived at his calculations on the Best Buy I
valuations and their property tax. Mr. Wozniczka asked what the City costs were related to
Interchange West and requested a summary of such costs. He also requested a response be
provided directly to a speaker requesting information, not just to the City Council.
Council Member Rosenberg apologized on staff's behalf for not providing a response to Mr.
Wozniczka. She added that it appeared at the Open Forum, that Mr. Wozniczka was not seeking
information, but blatantly stating that the City Council and staff information was wrong.
Council Member Sandahl stated that the information she was provided was also given to all
City Council by the staff. She explained how the Best Buy valuations were determined.
Council Member Enger stated Ehlers has issued three different valuations and it was
unclear which one was accurate.
Acting City Manager Oevich stated Ehlers provided three analyses of the property tax
payments for Best Buy based on pay 2002 assumptions, indicating that there is an adequate
amount to cover the debt service.
Peggy Handt, 7545 Colfax Avenue, on behalf of the Nordmarken vs. City of Richfield
lawsuit, requested forgiveness from the City Council for the Order of Costs received by the
petitioners for $200. She added the City Council has the authority to forgive this amount and the
City should be satisfied with prevailing in court.
Council Member Enger asked if the deadline for payment was November 30, 2002.
Ms. Handt said the deadline was 30 days from receipt of the Order of Costs.
Council Member Rosenberg stated the City Council should review this issue before making
a decision. She added the decision will be a tough one because of how the City has suffered as a
result of the petitioners' actions.
Council Member Enger asked Council Member Rosenberg if she was stating that the
citizens did not have a right to a referendum. He added that the petitioners were trying to protect
Richfield residents by using the City Charter provision.
Council Member Rosenberg stated that with that right goes responsibility, including
financing.
M/Enger to authorize the City Council to forqive the $200 Order of Costs received by the
five petitioners related to the Nordmarken vs. City of Richfield lawsuit.
Motion failed for lack of a second.
Council Member Sandahl asked staff to provide the City Council with a report of City costs
related to this litigation before a decision is made on forgiving the $200.
Mayor Kirsch led the audience in the Pledge of Allegiance.
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Council Meeting Minutes
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October 22, 2002
M/Ulrich, S/Rosenberg to approve the minutes of (1) Special City Council Worksession of
October 8, 2002: (2) Reqular City Council Meetinq of October 8, 2002: and (3) Special City Council
Meetinq of October 9,2002.
Motion carried 5-0.
Item #1
w
'R-FINANCIAL
'b01"TO,CITY OF
Mayor Kirsch presented a Certificate of Achievement for Financial Reporting for the fiscal year
ended on December 31, 2001 to the City of Richfield Finance Manager Chris Regis.
Council Member Sandahl said she contacted the City Manager and asked that staff provide
an update to the City Council on post September 11 anti-terrorism activities in Richfield.
Dan Scott, Public Safety Director, and Kevin McGinty, Fire Services Director, provided an
update on Police and Fire activities related to emergency preparedness.
Council Member Ulrich said there is a need to feel secure, but not complacent.
Mayor Kirsch requested that an emergency preparedness update be provided on a quarterly
basis at City Council meetings.
Mayor Kirsch read a letter of thanks from a Richfield resident whose grandson received
emergency assistance recently from Richfield Fire Services.
Council Member Rosenberg presented a resolution to the City Council in support of the
November 5, 2002 school bond referendum. She requested the City Council approve this resolution
and a roll call vote be taken.
M/Rosenberg, S/Kirsch 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. 9241
RESOLUTION SUPPORTING RICHFIELD PUBLIC SCHOOLS
OPERATING LEVY REFERENDUM
Motion carried. 4-0. (Enger abstained.) This resolution appears as Resolution No. 9241 in
Resolution Book No. 74.
Council Member Sandahl stated a Council Member cannot abstain without City Council
approval and abstaining is appropriate only if there is a financial interest or conflict of interest with the
issue.
Council Member Enger stated he was abstaining because he has a personal conflict with the
school district that may result in legal action.
Council Meeting Minutes
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October 22, 2002
Todd Nollenberger, 7036 Lyndale Avenue, a member of the school district's fiscal planning
advisory committee and also a member of Citizens for a Quality Community (CQC), explained the
need for the referendum and the importance of the City Council's support.
Council Member Sandahl clarified a rumor that the City was responsible for the closing of the
Antique Lamp shop at 64th Street and Lyndale Avenue as untrue - at one point redevelopment of
that area was discussed, but no activity was happening at this time.
Council Member Sandahl read into the record a letter from MnDOT dated October 14, 2002
from Tom O'Keefe related to the freeway ramp at 76th Street and 1-35W northbound (Clerk's File No.
C-387) .
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Council Member Sandahl added that a conversation with Chris Roy, MnDOT, indicated the
original proposal of taking Richfield homes in that area has reduced from 23 to 10. She said Mr.
O'Keefe's letter is encouraging, because it shows MnDOT's interest in continuing to work with
Richfield to minimize freeway impacts.
Council Member Ulrich requested a Special City Council meeting notice be posted for the
ribbon cutting grand opening ceremony for the Penn Avenue bridge on October 30, 2002 at 2:00 p.m.
Council Member Rosenberg requested a Special City Council meeting notice be posted for
the groundbreaking ceremony at City Bella, 66th Street and Lyndale Avenue, on October 25, 2002 at
11 :30 a.m.
Council Member Ulrich announced the City's receipt of a housing performance award from the
Metropolitan Council with Richfield's final ranking tying for fourth place out of 185 communities in the
housing component score for providing affordable housing. She read the citations for Richfield
receiving this award.
Acting City Manager Devich said there was not adequate time to post the October 25, 2002 I
City Bella ground breaking ceremony as a Special City Council meeting and meet the open meeting
law requirements.
Acting City Attorney Callies said the City Bella event was more a social occasion, but the City
Council should exercise caution by not discussing or conducting business.
Item #2
M/Rosenberg, S/Sandahl to approve the aqenda.
Motion carried 5-0.
Item #3
A. Approved resolution calling for $2,495,000 refunding bond sale of $5,075,000 General
Obligation Taxable Tax Increment Bonds, Series 1996, dated December 1, 1996 S.R. No.
239
RESOLUTION NO. 9242
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RESOLUTION PROVIDING FOR THE SALE OF
$2,495,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT
REFUNDING BONDS, SERIES 2002B
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Council Meeting Minutes
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October 22, 2002
This resolution appears as Resolution No. 9242 in Resolution Book NO.7 4.
B. Approved resolution calling for $1,065,000 refunding bond sale of $1,570,000 Taxable
Variable Rate Demand General Obligation Bonds, Series 1999, dated November 1, 1999
S.R. No. 240
RESOLUTION NO. 9243
RESOLUTION PROVIDING FOR THE SALE OF
$1,065,000 TAXABLE GENERAL OBLIGATION TAX INCREMENT
REFUNDING BONDS, SERIES 2002C
This resolution appears as Resolution No. 9243 in Resolution Book NO.7 4.
C. Approved resolution calling for public hearing by City Council on proposed adoption of
modification to redevelopment plan for Richfield Redevelopment Project Area and
establishing Lyndale Gateway West Tax Increment Financing District S.R. No. 241
RESOLUTION NO. 9244
RESOLUTION CALLING FOR A PUBLIC HEARING BY THE CITY COUNCIL ON
THE PROPOSED ADOPTION OF A MODIFICATION TO THE REDEVELOPMENT
PLAN FOR RICHFIELD REDEVELOPMENT PROJECT AREA, AND THE
PROPOSED ESTABLISHMENT OF THE L YNDALE GATEWAY WEST TAX
INCREMENT FINANCING DISTRICT (A REDEVELOPMENT DISTRICT) THEREIN,
AND THE ADOPTION OF A TAX INCREMENT FINANCING PLAN THEREFOR.
This resolution appears as Resolution No. 9244 in Resolution Book No. 74.
D. Approved resolution approving subdivision waiver for 6815 Humboldt Avenue S.R. No. 242
RESOLUTION NO. 9245
RESOLUTION AUTHORIZING A SUBDIVISION WAIVER
6815 HUMBOLDT AVENUE SOUTH
This resolution appears as Resolution No. 9245 in Resolution Book NO.7 4.
E. Approved continuing agreement with City of Bloomington for animal boarding and kennel
services for City of Richfield for 2003 SR. No. 243
F. Approved continuing agreement with City of Bloomington for food inspection services for City
of Richfield for 2003 and 2004 S.R. No. 244
G. Approved continuing agreement with City of Bloomington for public health services for the
City of Richfield for 2003 S.R. No. 245
H. Removed from the consent calendar and placed on the regular agenda for consideration as
Item 4.
I. Approved itinerant place of amusement and itinerant food licenses for Church of S1. Richard,
7540 Penn Avenue; for annual Fall Festival on November 23 and 24, 2002 S.R. No. 247
Council Meeting Minutes
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October 22, 2002
J. Approved veterinary license renewal to operate veterinary clinic for A Caring Doctor,
Minnesota P.A. d/b/a Banfield Pet Hospital, 1100 West 78th Street S.R. No. 248
K. Approved multi-animal residential license renewal for 7520 Morgan Avenue; three dogs S.R.
No. 249
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L. Approved of request from State of Minnesota to review renewal of currency exchange license
for:
. Checks Cashed of America, LLC d/b/a Money Exchange, 7620 Lyndale Avenue S.R. No.
250
. Community Money Centers, Inc. d/b/a Money Centers, 6525 Nicollet Avenue S.R. No.
251
Council Member Enger asked to remove Item 3H from the Consent Calendar and place it
on the regular agenda as Item 4.
Council Member Ulrich abstained from Item C because she owns property in the Lyndale
Gateway West area.
M/Rosenberg, S/Sandahl to approve the amended Consent Calendar.
Motion carried 5-0. (Ulrich abstained from Item 3C.)
Item #4
Item 3H. Consideration of approval of purchase of engineering services from Wentz I
Associates, Inc., 7300 France Avenue, to prepare plans and specifications for HVAC
improvements at City Hall in amount of $19,500 S.R. No. 246
Council Member Enger asked if the City has spent a considerable amount of money over
the past years on the HVAC system.
Acting City Manager Devich said yes, and now a portion of the air conditioning is almost
completely gone.
Public Works Director Eastling explained the past history of the HVAC system renovations
and upgrades. He also explained the need for this review because this replacement is to
changeover the entire air conditioning system.
M/Enger, S/Rosenberg to approve the purchase of enqineerinq services from Wentz
Associates, Inc. for a fee $19,500.00, plus related reimbursable expenses.
Motion carried 5-0.
Council Member Sandahl read the rules regarding abstaining from voting as stated in the
City of Richfield Rules of Procedure and Decorum.
Item #5
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Council Meeting Minutes
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October 22, 2002
Acting City Manager Devich reviewed Staff Report No. 252 regarding consideration of a
resolution regarding civil enforcement for Champps Restaurant in Richfield for failure of alcohol
compliance check in April of 2002.
Public Safety Director Scott reviewed the background related to this disciplinary hearing.
David DeSmidt, attorney representing Champps, stated that based upon the information,
Champp's was willing to admit to the illegal sale to a minor in April 2002, but he was unable to
resolve with Richfield's City Attorney of whether this was a second violation per Resolution 9204 or
a third violation per Resolution 8808. He said there is a difference of opinion as to which resolution
applies to the April violation. Mr. DeSmidt stated that his position is that when Resolution 8808
was rescinded on July 9, 2002, Resolution 9204 was in effect when the matter came before the
City Council on July 23, 2002. He asked the City Council to be mindful that Champps has been in
compliance at least twice in the time between the past violation outside of two years and the
current violation is in compliance of Resolution 9204. He added that Champps takes alcohol sales
very seriously and the server who served the minor was fired. Mr. DeSmidt reviewed the steps and
procedure Champps has taken to ensure compliance. He requested the City Council consider the
April 2002 violation as a second violation under Resolution 9204.
Council Member Ulrich asked about the turnover of staff, especially servers, at Champps.
Darrin Thorson, representing Champps, said most servers are typically there during a
summer.
Council Member Ulrich asked how often training regarding serving liquor is provided.
Mr. Thorson said rehires are retrained. He also explained the daily "pre-shifts" before each
shift, which included discussion of the carding of patrons.
Council Member Ulrich said training needed to be constantly repeated.
Mr. DeSmidt said Champps is open to all suggestions from the City to ensure compliance.
Kelly Day, representing Champps, demonstrated Champps drivers license scanning
equipment.
Council Member Enger asked when Resolution 9204 became effective and when Champps
was notified of their compliance failure.
Public Safety Director Scott said Resolution 9204 was passed by the City Council on July 9,
2002. He explained that Champps was notified at the time of their failure in April 2002, and then a
letter of explanation followed.
Council Member Enger asked when Champps received the letter of explanation.
Mr. DeSmidt stated only the police report was available and the next notice received by
Champps was on July 10 regarding the July 23 disciplinary hearing before the City Council which
was the same day the new Resolution 9204 was received.
Council Member Enger stated the April 2002 violation clearly occurred within the two years
of the previous violation under Resolution 8808. He asked the City Attorney if the City Council was
bound by the provisions in the current resolution.
Acting City Attorney Callies responded that the Champps violation is a civil penalty, not
criminal. She said it could be argued Resolution 9204 is more lenient, but it is a City Council
decision on which resolution applies.
Council Member Enger asked what resolution was used for the other establishments that
failed compliance and were before the City Council on July 23, 2002.
Public Safety Director Scott said Resolution 8808 was used.
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Council Meeting Minutes
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October 22, 2002
Council Member Sandahl said the new resolution, Resolution 9204 was to encourage
compliance and reward successes.
Council Member Sandahl explained that for purposes of calculation, the April 2002 violation
should be considered a second offense per Resolution 9204, but impose the ten day suspension
and $1750 fine and other disciplinary action per Resolution 8808.
M/Sandahl, S/Enger that the followinq amended resolution be adopted, that it be spread in
the resolution book and that it be made part of these minutes:
RESOLUTION NO. 9246
RESOLUTION SUSPENDING THE ON-SALE INTOXICATING AND SUNDAY LIQUOR LICENSE
FOR CHAMPPS, 790 W. 66TH STREET; AND IMPOSING A CIVIL PENALTY FOR A SECOND
TIME ALCOHOL COMPLIANCE FAILURE
Mayor Kirsch and Council Member Rosenberg agreed the amended resolution was a fair
compromise. They agreed training was an important piece to consider.
Council Member Enger agreed that the amended resolution was a fair combination of
Resolutions 8808 and 9204.
Motion carried 5-0. This resolution appears as Resolution No. 9246 in Resolution Book No.
74.
Council Member Enger suggested Champps consider signage stating the legal drinking age
with the birth year so doing calculations wasn't necessary.
Mayor Kirsch stated this City Council takes liquor sales to minors as very serious violations.
He added the City Council wants to not be totally punitive, but also assist establishments in
attaining successes.
Item #6
Acting City Manager Devich reviewed Staff Report No. 253 regarding the issuance of a new
therapeutic massage license for 7515 Upton Avenue, which was deferred from September 24,
2002.
Public Safety Director Scott stated a letter was sent to neighbors notifying them of this
business as requested by the City Council and no responses had been received.
Council Member Rosenberg thanked staff for sending the letter.
M/Rosenberg, S/Enger to approve an application for a new therapeutic massaqe license for
Anne Thurber, 7515 Upton Avenue (deferred from September 24, 2002).
Motion carried 5-0.
Item #7
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Council Meeting Minutes
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October 22, 2002
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Acting City Manager Devich reviewed Staff Report No. 254 regarding a multi-animal
residential license at 7412 Colfax Avenue for four dogs.
Public Safety Director Scott said this license was before the City Council as a regular
agenda item because of the comments from a neighbor who did not sign the application. He
reviewed the past property maintenance issues, which were the same as last year.
M/Rosenberg, S/Sandahl to approve a request for the renewal of a multi-animal residential
license for Gary and Stacy Berres, 7412 Colfax Avenue.
Ms. Berres, 7412 Colfax Avenue, applicant, explained that in accordance with the previous
license issuance, she cleans up her yard every day.
Motion carried 5-0.
Item #8
Acting City Manager Devich reviewed Staff Report No. 255 regarding appointing
Springsted, Inc. to perform Cost Analysis Study for preparing City of Richfield Municipal
Construction and Development Fee Revenue and Expense Annual Report in the amount not to
exceed $15,000, exclusive of out-of-pocket costs.
Finance Manager Regis explained the background related to this new reporting requirement
for municipalities as stated by M .S.16B.685. He added that the report is an unfunded mandate
from the Minnesota Department of Revenue and must be reported annually by April 1. Mr. Regis
also reviewed the selection process for the firm to develop the Cost Analysis Study.
Acting City Manager Devich stated it was important for the City to do a thorough job in
reviewing costs associated with permits because they need to be justified. He added that every
aspect of costs should be considered, including overhead costs.
Mayor Kirsch stated the City needs to be able to defend these costs.
M/Ulrich, S/Enger to appoint Sprinqsted, Inc. to perform the Cost Analysis Study at a fee
not to exceed $15,000, exclusive out of pocket costs, for the purpose of preparinq the Municipal
Construction and Development Fee Revenue and Expense Annual Report and authorize the City
Manaqer and Mayor to execute an aqreement for such services.
Motion carried 5-0.
Item #9
M/Kirsch, S/Sandahl to appoint Tom Harms as Housinq and Redevelopment Authority
Commissioner for a five-year term expirinq October 2007.
Motion carried 5-0.
Council Meeting Minutes
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October 22, 2002
Item #10
Item #11
M/Rosenberg, S/Sandahl that the followinq claims and pavrolls be approved:
RICHFIELD BANK & TRUST CO.
I NT Checks: 119307 - 119673
PAYROLL 32898 - 33037
TOTAL
$ 1,016,165.79
$ 429,847.00
$ 1,446,012.79
Motion carried 5-0.
The Regular City Council meeting was adjourned by unanimous cons
Date Approved: November 12. 2002
(~fz~~
Cheryl rumh Iz
Recording Secretary
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