11-20-02 Worksession-2
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CITY COUNCIL MINUTES
Richfield, Minnesota
Special Worksession
November 20, 2002
The meeting was called to order by Mayor Kirsch at 6:14 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; Mike Eastling, Public Works Director; Dan Scott, Public Safety
Director; Bruce Palmborg, Community Development Director; Jim
Topitzhofer, Recreation Services Director; Kevin McGinty, Fire Services
Director; Bill Fillmore, Municipal Liquor Operations Director; Chris Regis,
Finance Manager; John Stark, Community Development Manager; Bruce
Nordquist, Housing and Redevelopment Manager; and Cheryl Krumholz,
Recording Secretary.
Item #1
City Manager Orduno stated tonight's City Council Worksession was called at Council
Member Enger's request.
Administrative Services Director Devich presented tax impact facts from Hennepin County,
including impacts on Richfield's neighboring communities. He said that tax notices have been sent to
Hennepin County residents by now. While over one-third of the 241,000 residential property owners
in the county are seeing 10% - 15% overall property tax increases for 2003, 99.9% of Richfield
residential properties are looking at increases of less than 5%. Richfield residents represent two-
thirds of all Hennepin County residential properties that will receive less than a 5% tax increase, even
though Richfield represents only 3.8% of all Hennepin County residential properties. He added that
the tax notices do not include the decertification of Lyndale-Hub-Nicollet tax increment district or the
approved school referendum.
Mr. Devich also discussed Richfield's estimated 2003 tax capacity rates.
City Manager Orduno said that Richfield was one of a handful of cities to take immediate
action due to the possible Local Government Aid (LGA) and Homestead and Agricultural Aid (HACA)
reductions.
Council Member Ulrich added the City could act so quickly because a variety of sources
provided valuable information.
Special Worksession Minutes
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November 20, 2002
Council Member Enger asked about 2002 tax estimates.
Administrative Services Director Devich said the facts from Hennepin County have not been
provided previously.
City Manager Orduno said the Hennepin County information gives a point of comparison and
they should continue to provide this data.
Council Member Enger asked if Richfield was made to look better because of the 2002 tax
increase.
Administrative Services Director Devich said no and explained the analysis of tax levy
increases. He added that the City reacted to what could happen to LGA.
City Manager Orduno stated the City is still positioning for an additional LGA loss, but also
reducing the dependence on LGA.
Council Member Ulrich asked about the status of the study and review of permit fees and fees
for service.
City Manager Orduno stated the company to conduct the study has been selected and the
process will begin soon.
Mayor Kirsch asked when the new or increased fees would be in effect.
City Manager Orduno said some of the increased fees are already effective, but the results of
the study should be implemented in 2004.
Administrative Services Director Devich stated it is anticipated the City will be low in the fee
charges.
Council Member Enger said government should operate as a business and as efficiently as
possible. He stated opposition to privatization because it was not an effective way to operate
government.
Council Member Enger stated he had some suggested areas to cut to reduce the budget. He
suggested consolidation of some staff positions which would result in the same amount of work
getting done, but not create too much of a workload change.
City Manager Orduno stated staff positions are the City Manager's responsibility. She said
reducing or streamlining services internally and/or externally is a City Council decision and then the
City Manager handles the determination of appropriate staffing levels.
Council Member Enger stated the City Council should consider reviewing the consolidation of
Fire Departments with other cities such as Edina and S1. Louis Park. He also suggested a review of
paid-on-call as possible cost savings.
Mr. Enger suggested a study of potential cost savings related to Fire Services consolidation,
including combining services and apparatus and the effect on response times. He added that
consideration could be given to closing one station and building another centralized with Edina and
Richfield.
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Council Member Sandahl stated response time is an issue.
Council Member Ulrich stated senior citizens are very concerned about response time.
Fire Services Director McGinty stated consolidation could save money if all the cities I
participated, but it is important to know how changes will affect the current level of services. He
explained the current mutual aid agreements and auto-aid process with surrounding communities.
He added that his department is preparing for the annual report a "What are you buying in Fire
Services" piece that will be distributed to the City Council.
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Special Worksession Minutes
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November 20, 2002
Fire Services Director McGinty explained his experience with a past fire consolidation effort in
other communities.
City Manager Orduno stated a fire services consolidation study is very costly and time
consuming. She suggested a Blue Ribbon Citizen Participation Committee be formed if this study is
to occur because the effort needs to be citizen driven or there will be no support.
Council Member Enger said City staff needs to contact Edina and St. Louis Park City Councils
to explore their interest in participating.
City Manager Orduno stated staff is not the driving force in this effort, but rather the City
Council needs to meet with the other City Councils. She said consolidation is tangible in terms of
money, but intangible in terms of customer service. She suggested a community survey be
conducted regarding City services, including fire services consolidation.
Council Member Sandahl asked for an explanation of auto aid.
Fire Services Director McGinty explained the differences between mutual aid and auto aid
services. He added that auto aid has alleviated some instances of call-back.
Council Member Enger requested a future City Council meeting with the Edina and St. Louis
Park City Councils to discuss cost savings measures for fire services, but only if response times are
not extended.
Council Member Sandahl stated she was not prepared to authorize funding on a fire services
consolidation study, but did agree to inquiring with the other cities. She said she supports areas of
cost savings, but doesn't believe Richfield residents are interested in fire consolidation.
Council Member Rosenberg stated she did not support a meeting with the other city councils.
Council Member Ulrich stated Council Members could informally discuss this issue with the
Edina and St. Louis Park city officials while attending various organizational meetings.
Council Member Enger suggested a preliminary study at a minimal cost be conducted
because the possible response time changes won't be known otherwise.
The City Council consensus was to not conduct a preliminary study or meet with Edina and St.
Louis Park City Councils regarding fire services consolidation. There was support for conducting a
community survey.
Mayor Kirsch asked the City Council if there were any suggested changes to the 2003 budget
in preparation for the December 10 Truth-in- Taxation meeting.
Council Member Enger stated he had cost savings suggestions, including:
. Elimination of some sidewalk snowplowing - maintain only the main thoroughfares
because of their boulevard width.
Council Member Ulrich said the sidewalks around schools need to be plowed.
Council Member Sandahl stated she was not prepared to inform some residents that their
sidewalk may no longer be plowed. She recalled that residents agreed to sidewalks because the City
agreed to plow them.
Public Works Director Eastling said sidewalks along arterial and collector streets and those
near schools are plowed because of the potential high conflict between pedestrians and vehicles.
Mayor Kirsch and Council Member Sandahl expressed opposition to stopping sidewalk
plowing because of considerable negative citizen feedback.
The City Council consensus was to not change the current sidewalk snowplowing policy.
Special Worksession Minutes
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November 20. 2002
. How was City's 2003 tax levy determined? Information he requested at the September 12
City Council meeting was not provided.
Finance Manager Regis provided the City Council with the letter from the Minnesota
Department of Revenue explaining how the City's payable 2003 overall levy limitation was
determined.
. What is the impact of the Best Buy taxes in 2003?
City Manager Orduno responded that the information on Best Buy taxes was provided to the
City Council previously.
. If the tax increment financing district is restored and Best Buy gets the $24 million subsidy,
how is the City affected?
City Manager Orduno responded that this issue is in active litigation and discussion is the
subject for a closed executive session, not a public meeting.
Council Member Ulrich stated a Council Memo had previously been distributed on this matter.
. What happens to unspent budgeted funds at year-end?
Administrative Services Director Devich responded that the unspent funds are folded into the
General Fund to increase the fund balance. He added the City Council could dedicate the funds for
another purpose. He said the amount of this year's unspent funds depends upon the market value
credit and LGA.
. Are extra funds budgeted for City Council meetings in the park?
. What are Summer Bus Tour expenses?
City Manager Orduno responded that the meetings in the parks do not require additional
budgeted funds and the summer bus tour has a minimal expense for the bus.
Administrative Services Director Devich added that City staff who participate in these activities
are exempt from overtime.
Mayor Kirsch said these events are a good means of communication with the community.
. Evaluate the time spent on "Out & About in Richfield" cable television program.
City Manager Orduno responded that the program is a good communication piece. She
added the program costs very little and the participating staff is exempt from overtime. She said it is
a City Council policy decision to continue or not with the program.
Community Development Manager Stark stated that a Best Buy marketing survey indicated
that the Your City and cable television have more market coverage than the Richfield Sun Current.
Mayor Kirsch requested the Best Buy survey information be provided to the City Council.
Council Member Rosenberg reported on the recent Planning Commission Worksession and
their review of on-street and off-street parking regulations in the City. She said the commission
decided not to review the on-street parking issue because it appeared to be a solution in search of a
problem. She said the commission will review the off-street parking issue. She added that a
representative from Hope Presbyterian Church wanted to participate in discussions, especially as it
relates to the property on Portland Avenue and 71st Street.
City Manager Orduno informed the City Council that a Special City Council meeting will be on
January 2, 2003 as required by City Charter following a municipal election.
City Manager Orduno stated staff would be contacting them to schedule the January annual
City Council and staff goal setting worksession.
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Special Worksession Minutes
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November 20, 2002
The City Council consensus was to conduct the goal setting session away from City Hall and
asked staff to contact the Hampton Inn in Richfield.
The meeting was adjourned by unanimous consent at 7:51 p.m.
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Date Approved: December 10. 2002
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Cheryl K . mh-dlz
Recording Secretary
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