11-12-02 Regular
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CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Meeting
November 12, 2002
The meeting was called to order by Mayor Kirsch at 6:30 p.m.
Members Present:
Martin Kirsch, Mayor; Susan Rosenberg; Gertrude Ulrich; and John Enger.
Members
Not Present:
Sue Sandahl.
Samantha Orduno, City Manager; Steven Devich, Administrative Services
Director; Bruce Palmborg, Community Development Director; Mike
Eastling, Public Works Director; Dan Scott, Public Safety Director; Chris
Regis, Finance Manager; Bruce Nordquist, Housing and Redevelopment
Manager; Cheryl Krumholz, Recording Secretary; and Corrine Thomson,
City Attorney.
M/Ulrich, S/Rosenberg to determine the absence of Council Member Sandahl as an
excused absence.
Staff Present:
Motion carried 4-0.
Russ Susag, 7305 First Avenue, explained a mentoring program he participates in at the
Richfield Middle School entitled, "Future City Competition". He also acknowledged the
participation of City staff, specifically Bruce Palmborg, Community Development Director, who
reviewed the development process in the City, and Pam Dmytrenko, Assistant to the City Manager,
who is coordinating a tour of City Hall.
Mr. Susag presented a picture to City Attorney Corrine Thomson in recognition of Kennedy
& Graven's sponsorship of a hole in the FOWL Ball Golf Klassic.
Robert Hall, 7309 Oliver Avenue, requested a status update be provided to residents
regarding the traffic mitigation measures at 70th Street and Penn and Xerxes Avenues.
Council Member Rosenberg stated she is a member of the committee that reviewed this
area and further discussion is needed for traffic calming measures on 70th Street. She said speed
bumps didn't work on that street.
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November 12, 2002
Mayor Kirsch led the audience in the Pledge of Allegiance.
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M/Ulrich, S/Rosenberg to approve the minutes of (1). Special City Council Meetinq of
October 16, 2002; (2) Special City Council Worksession of October 22, 2002; (3) Reqular City
Council Meetinq of October 22,2002; (4) Special City Council Meetinq of October 23,2002; (5)
Special City Council Meetinq of October 23, 2002; (6) Special City Council Meetinq of October 29,
2002; and (7) Special Concurrent City Council, Planninq Commission and HRA Meetinq of October
30, 2002.
Motion carried 4-0.
Item #1
John Easterwood, Charter Commission President, reported on the 2002 commission
accomplishments and reviewed the proposed goals for 2003.
Item #2
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Public Works Director Eastling reviewed the City's snow plowing policy.
Public Safety Director Scott reviewed the City's towing procedure, which does not occur until it
is determined that there is a two-inch snowfall. He also explained how the snow plowing policy is
communicated to the residents.
Council Member Rosenberg commended City staff on their fundraising efforts during this
year's annual United Way campaign.
Council Member Rosenberg reported that, after visiting Portland, Oregon recently and riding
light rail as her only means of transportation, she has a strong appreciation for the transit system and
how well it works.
Council Member Rosenberg paid tribute to Tom Scaglia who recently passed away. She
acknowledged his efforts and involvement in the community.
Council Member Enger referenced a November 9 Minneapolis Star Tribune article related to
Best Buy entering the legal battle between the City and Walser. He asked if the City had previous
knowledge of Best Buy's intervention, when this motion occurred and if the City's position was
neutral. He also asked how the development subsidy of $24 million was determined.
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November 12, 2002
City Attorney Th?mson stated the City was awa.re of Best Buy's interv.ention through t,he
courts, the motion was filed on November 8, and the City and HRA do not object to Best Buy s
intervention.
City Manager Orduno explained the reduction in tax increment rates affect on the subsidy.
She also stated that amount had been released to the City Council previously.
Council Member Enger asked about the tax affect if Best Buy prevails.
City Attorney Thomson explained that the only request Best Buy made was to bring their
position to the court and defend the district.
Council Member Ulrich stated the recent staff letter sent to Ted Mondale at the Met Council
regarding the Blueprint 2003 related to regional growth was well written and addressed all her points
of concern.
Mayor Kirsch acknowledged the POW/MIA flag donation from the Richfield American Legion.
Mayor Kirsch acknowledged receipt of a certificate honoring the City of Richfield for reaching
an important milestone of 45 years of membership and participation with the National League of
Cities.
Item #3
M/Rosenberg, S/Ulrich to approve the aqenda.
Motion carried 4-0.
Item #4
A. Approved first reading of ordinance amendment to Richfield City Code Section 325 for
Administrative Hearing Enforcement Program and schedule second reading for December
10,2002 S.R. No. 257
B. Approved resolution authorizing procedures for private activity revenue bond financing S.R.
No. 258
RESOLUTION NO. 9247
RESOLUTION APPROVING PROCEDURES FOR
PRIVATE ACTIVITY REVENUE BOND FINANCING
This resolution appears as Resolution No. 9247 in Resolution Book No. 74.
C. Removed from the consent calendar and placed on the regular agenda for consideration as
Item 5.
D. Approved resolution determining results of City General Election of November 5, 2002 S.R.
No. 260
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November 12, 2002
RESOLUTION NO. 9249
RESOLUTION DETERMINING RESULTS OF THE GENERAL ELECTION OF THE CITY OF
RICHFIELD HELD ON TUESDAY, NOVEMBER 5,2002
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This resolution appears as Resolution No. 9249 in Resolution Book No. 74.
E. Approved resolution appointing Rebecca Ortega to Richfield Tourism Promotion Board for
unexpired portion of three-year term ending December 31,2002 S.R. No. 261
RESOLUTION NO. 9250
RESOLUTION APPOINTING A REPRESENTATIVE
TO THE BOARD OF DIRECTORS TO
THE RICHFIELD TOURISM PROMOTION BOARD, INC.
This resolution appears as Resolution No. 9250 in Resolution Book No. 74.
F. Approved resolution appointing John Bjostad, member of Richfield Community Human
Services Council, as City's representative to Hennepin South Services Collaborative,
Collaborative Advisory Team to serve remainder of two-year term beginning February 12,
2002 S. R. No. 262
RESOLUTION NO. 9251
A RESOLUTION AUTHORIZING THE APPOINTMENT OF JOHN BJOSTAD, A MEMBER OF THE I
RICHFIELD COMMUNITY HUMAN SERVICES PLANNING COUNCIL, AS THE AS THE CITY'S
REPRESENTATIVE TO THE HENNEPIN SOUTH SERVICES COLLABORATIVE
COLLABORATIVE ADVISORY TEAM TO SERVE THE REMAINDER OF THE TWO-YEAR TERM
BEGINNING FEBRUARY 12, 2002.
This resolution appears as Resolution No. 9251 in Resolution Book No. 74.
G. Approved resolution authorizing amendments to City of Richfield Health Care and Dependent
Day Care Flexible Spending Account Plan S.R. No. 263
RESOLUTION NO. 9252
RESOLUTION AUTHORIZING AMENDMENT TO THE
CITY OF RICHFIELD HEALTH CARE AND DEPENDENT DAY CARE
FLEXIBLE SPENDING ACCOUNT PLAN
This resolution appears as Resolution No. 9252 in Resolution Book NO.7 4.
H. Approved resolution designating City's contribution toward health, term life and dental
insurance premiums for General Services and Management employees S. R. No. 264
RESOLUTION NO. 9253
RESOLUTION DESIGNATING CITY'S CONTRIBUTION
TOWARD HEALTH, TERM LIFE AND DENTAL INSURANCE
PREMIUM FOR MANAGEMENT AND GENERAL SERVICES EMPLOYEES
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This resolution appears as Resolution No. 9253 in Resolution Book No. 74.
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November 12, 2002
I. Approved Stipulation of Settlement for Bloomington Parcel 4 (Rosenberg) of Penn Avenue
Bridge Project S. R. No. 265 '" ,r '" '
J. Approved payment to Roger Skare, Colliers Towle Real Estate, for appraisal services
provided on acquisition of Parcel 5, 7601 Knox Avenue, Fountainhead Apartments, as part of
76th Street Widening Project in amount of $28,954 S.R. No. 266
K. Tabled consideration of approval of indemnification and cooperation agreement regarding
Wold-Chamberlain Field Joint Airport Zoning Board and Minneapolis-St. Paul International
Airport zoning ordinance S.R. No. 267
L. Approved continuation of contractual agreement with City of Bloomington to provide various
types of building inspections and code enforcement for City of Richfield for 2003 and 2004
S.R. No. 268
M. Approved scheduling public hearing on December 10,2002 for renewal of 2003 on-sale wine
and on-sale 3.2 percent malt liquor licenses for Red Pepper Chinese Restaurant. Ketsana's
Thai Restaurant and Thompson's Fireside Pizza SR. No. 269
N. Approved scheduling public hearing on December 10, 2002 for renewal of 2003 on-sale
intoxicating and Sunday liquor licenses for: Chi Chi's Mexican Restaurant; The Ground
Round; Khan's Mongolian Barbeque; Minneapolis-Richfield American Legion Post 435; Fred
Babcock VFW Post No. 5555 d/b/a Four Nickels Food and Drink; Don Pablo's Operating
Corporation, d/b/a Don Pablo's; Champps Operating Corporation d/b/a Champps Sports
Cafe; Wiltshire Restaurants, LLC d/b/a Houlihan's Restaurant & Bar; The Frenchman's; and
Taco Morelos S.R. No. 270
O. Approved scheduling public hearing on December 10, 2002 for renewal of 2003 pawnbroker
and secondhand goods dealer licenses for Metro Pawn and Gun., Inc. and Capital Cash,
LLC d/b/a Hy's Pawn S.R. No. 271
Mayor Kirsch removed Item 4C from the Consent Calendar and placed it on the regular
agenda as Item 5.
Mayor Kirsch removed Item 4K from the Consent Calendar and placed it on the regular
agenda as Item 5.
M/Ulrich, S/Rosenberg to approve the amended Consent Calendar.
Motion carried 4-0.
Item #5
Item 4C. Consideration of approval of resolution authorizing subdivision waiver for
7309 Grand Avenue S.R. No. 259
Mayor Kirsch explained he removed this item from the Consent Calendar because there
were residents in the audience who had concerns about the subdivision.
Marv Martens, 7313 Grand Avenue, spoke against the subdivision because of the alley and
snow plowing and parking concerns. He also expressed concern about having two, 50-foot lots
and the size of the houses.
Bruce Branch, co-owner of 7309 Grand Avenue, explained the renovation plans for the
property. He added that he has met all the City zoning requirements. Mr. Branch said he was
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November 12, 2002
aware of the property's past problems and assured the neighbors there would be no future
concerns.
Council Member Rosenberg asked Mr. Branch if he was now living in the house.
Mr. Branch said no, the house is not habitable at this time.
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Council Member Rosenberg expressed concern about building new, larger homes on 50-
foot lots, but current regulations do not restrict the house size.
Council Member Enger stated he had no problem with a larger house on a small lot, but he
was concerned about the driveway setback relative to the fireplace space.
Community Development Director Palmborg said a five-foot setback is required for a
structure.
Mr. Branch explained the driveway property line requirements which are met.
Council Member Ulrich stated that building on smaller lots meets the City's need for
affordable housing.
David Johnson, 7321 Grand Avenue, asked if the two lots will share a driveway.
Council Member Enger said the City Council and staff do not want a shared driveway for
new homes.
Mr. Branch said no shared driveway is planned because there is enough space available
for separate driveways.
Marian Miller, 7316 Grand Avenue, expressed concern about the property becoming rental I
again because of the past troubles with tenants. She asked if the neighbors could review the
renovation plans before the City Council approval.
Community Development Director Palmborg explained the subdivision requirements have
been met and plans are not required. He added that the Inspections Division would review the
building plans and issue permits.
Mayor Kirsch asked the applicants to share the building plans with the neighbors.
Council Member Enger said he agreed with the neighbors' concerns about rental property.
Mr. Branch stated that, at this time, he does not intend to rent either property. He said he
may sell both of them or live in one and rent the other.
Council Member Ulrich asked the City Attorney how much control the City Council has if the
property is going to be rental.
City Attorney Thomson said the City could not dictate if the property is owner-occupied or
rental. She added that the rental issue is irrelevant to the issue before the City Council tonight.
M/Rosenberg, 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. 9248
RESOLUTION AUTHORIZING A SUBDIVISION WAIVER
7309 GRAND AVENUE SOUTH
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Motion carried 4-0. This resolution appears as Resolution No. 9248 in Resolution Book No.
74.
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November 12, 2002
Item 4K. Consideration of approval of indemnification and cooperation agreement
regarding Wold-Chamberlain Field Joint Airport Zoning Board and Minneapolis-St. Paul
International Airport zoning ordinance S.R. No. 267
Mayor Kirsch removed this item and requested it be deferred to the City Council meeting in
December.
M/Ulrich, S/Enger to table action on this item to the December 10 City Council meetinq.
Motion carried 4-0.
Item #6
City Manager Orduno reviewed Staff Report No. 272 regarding a resolution authorizing an
amendment to a conditional use permit to allow Academy of Holy Angels to reconstruct and
expand gymnasium, add classroom space and complete site improvements to school campus at
6600 Nicollet Avenue.
Community Development Director Palmborg reviewed the findings necessary to issue the
conditional use permit, including the additional requirements for private-public schools.
Jill Reilly, Academy of Holy Angels President, explained how the proposed project will be
an asset to the community and improve education by better serving the students.
Roger Johnson, architect from OPUS, reviewed the proposed architectural plans, including
landscaping to enhance the north elevation which was a concern of the Planning Commission.
Stephen Froemming, 6600 Pleasant Avenue, spoke in support of the project because of the
expanded gym facility and the larger classrooms will enhance learning.
M/Rosenberg, S/Ulrich to close the public hearinq.
Motion carried 4-0.
Mayor Kirsch said the proposed construction will keep the Academy of Holy Angels
competitive with other schools.
Council Member Rosenberg said the project is a good addition to the community.
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. 9254
RESOLUTION AUTHORIZING AN AMENDMENT TO A CONDITIONAL USE PERMIT
6600 Nicollet Avenue
Motion carried 4-0. This resolution appears as Resolution No. 9254 in Resolution Book No.
74.
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November 12, 2002
Item #7
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City Manager Orduno stated that Items 7 and 8 would be held as one public hearing, but
separate action was necessary on each resolution.
City Manager Orduno reviewed Staff Report No. 273 regarding a resolution awarding the
sale of $2,495,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2002B;
and Staff Report No. 274 regarding a resolution awarding the sale of $1,065,000 Taxable General
Obligation Increment Refunding Bonds, Series 2002C.
Finance Manager Regis explained the background and funding purpose of the bonds.
Sid Inman, Ehlers & Associates, explained the bond sale details. He stated that Moody's
Investors Service has assigned a Aa3 rating to the bonds. The rating reflects the City's stable
economy located in the metro area, stable financial position and manageable debt burden. Mr.
Inman said Moody's expects the City's financial position to remain satisfactory given managements
demonstrated ability to maintain stable operations and maintain healthy fund balance reserves.
Mr. Inman said the recommendation was to award the sale of the $2,495,000 refunding bond to U.
S. Bancorp Piper Jaffrey and the sale of the $1,065,000 refunding bond to Cronin & Company, Inc.
Council Member Rosenberg commended City staff for their being financially conscientious.
Mayor Kirsch expressed credit to the HRA, City Council and City staff for the positive
financial conclusions from Moody's.
City Manager Orduno said City staff works diligently for the community.
M/Rosenberg, S/Ulrich that the followinq resolution be adopted; that the sale be awarded to
U. S. Bancorp Piper Jaffrey; that it be spread in the resolution book and that it be made part of
these minutes:
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RESOLUTION NO. 9255
A RESOLUTION AWARDING THE SALE OF $2,460,000 TAXABLE
GENERAL OBLIGATION TAX INCREMENT REFUNDING
BONDS, SERIES 2002B;
FIXING THEIR FORM AND SPECIFICATIONS;
DIRECTING THEIR EXECUTION AND DELIVERY;
AND PROVIDING FOR THEIR PAYMENT
Motion carried 4-0. This resolution appears as Resolution No. 9255 in Resolution Book No.
74.
Item #8
City Manager Orduno stated that Items 7 and 8 would be held as one public hearing, but I
separate action was necessary on each resolution.
City Manager Orduno reviewed Staff Report No. 273 regarding a resolution awarding sale
of $2,495,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2002B; and
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Staff Report No. 274 regarding a resolution awarding sale of $1 ,065,000 Taxable General
Obligation Increment Refunding Bonds, Series 2002C.
M/Rosenberg, S/Ulrich that the followinq resolution be adopted: that the sale be awarded to
Cronin & Company, Inc.: that it be spread in the resolution book and that it be made part of these
minutes:
RESOLUTION NO. 9256
A RESOLUTION AWARDING THE SALE OF $1,045,000 TAXABLE
GENERAL OBLIGATION TAX INCREMENT REFUNDING
BONDS, SERIES 2002C;
FIXING THEIR FORM AND SPECIFICATIONS;
DIRECTING THEIR EXECUTION AND DELIVERY;
AND PROVIDING FOR THEIR PAYMENT
Motion carried 4-0. This resolution appears as Resolution No. 9256 in Resolution Book No.
74.
Item #9
City Manager Orduno reviewed Staff Report No. 275 regarding a resolution approving a
Business Subsidy Agreement between the City of Richfield Housing and Redevelopment Authority
and the Gramercy Corporation for the City Bella project.
Housing and Redevelopment Manager Nordquist stated State law required City Council
approval on this matter. He reviewed the background and guiding principles for the HRA and City
Council determinations.
Council Member Enger asked if the $8.473 million tax increment financing was approved.
Mr. Nordquist said the HRA approved the financing at the time of the business subsidy
agreement.
Council Member Enger asked if the initial financing request was for $6 million.
Mr. Nordquist explained the increase costs were related to the acquisition and plaza
improvements. He added that Gramercy is not requesting the total amount of financing they are
eligible to receive.
Council Member Enger asked about the references to a City park in this project.
Mr. Nordquist said City Bella has created a private park for public use, similar to the
Kirchbak Gardens.
M/Rosenberg, S/Ulrich 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. 9257
RESOLUTION APPROVING A BUSINESS SUBSIDY
AGREEMENT BETWEEN THE CITY OF RICHFIELD
AND GRAMERCY CORPORATION.
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November 12, 2002
Motion carried 4-0. This resolution appears as Resolution No. 9257 in Resolution Book No.
74.
Item #10
City Manager Orduno reviewed Staff Report No. 276 regarding a first reading of a transitory
ordinance vacating alley right-of-way in the 7600 block of Lyndale and Aldrich Avenues for the
Lyndale Gateway West redevelopment project and to schedule a public hearing and second
reading for December 10, 2002.
City Manager Orduno explained this item was not placed on the Consent Calendar because
Council Member Ulrich lives in the area.
Council Member Ulrich requested City Council approval to abstain from voting on this item
because of personal involvement.
M/Rosenberg, S/Enger to approve the abstention of Council Member Ulrich.
Motion carried 4-0.
M/Rosenberg, S/Enger to approve first readinq of a transitory ordinance vacatinq the alley
riqht-of-way in the 7600 block of Lyndale and Aldrich Avenues for the Lyndale Gateway West
redevelopment proiect.
Motion carried 3-0. (Ulrich abstained.)
Item #11
Council Member Rosenberg stated Council Member Sandahl indicated to her that this item
be deferred to the next City Council meeting so she can be present during discussion.
M/Rosenberg, S/Enger to defer providinq direction on the desiqn of a pedestrian crosswalk
on Lake Shore Drive to the November 26 City Council meetinq.
Motion carried 4-0.
Item #12
City Manager Orduno reviewed Staff Report No. 278 regarding an update regarding Knox
Avenue Wastewater Lift Station (Lift Station #3), needed as part of the Best Buy project.
Public Works Director Eastling reviewed the background, including collaboration of efforts
between Best Buy and the City.
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Public Works Director Eastling acknowledged the efforts of Robert Hintgen, Utility
Supervisor, in handling this project.
Item #13
No report.
Item #14
MIRosenberg, S/Ulrich that the followinq claims and pavrolls be approved:
RICHFIELD BANK & TRUST CO.
AlP Checks: 119674-120114
PAYROLL 33041 - 33321
TOTAL
$ 1,447,877.26
$ 855,361.18
$ 2,303,238.44
Motion carried 4-0.
Date Approved: November 26. 2002
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CherYI~rumh 12 'rf
Recording Secretary