12-10-02 Worksession
I
I
I
CITY COUNCIL MINUTES
Richfield, Minnesota
Special Worksession
December 10, 2002
The meeting was called to order by Mayor Kirsch at 5:08 p.m.
Council Members
Present:
Martin Kirsch, Mayor; Susan Rosenberg; Gertrude Ulrich; John Enger; and
Sue Sandahl.
Jane Ranum, District 63 State Senator; Paul Thissen, District 63A State
Representative; Dan Larson, District 63B State Representative; Phil
Riveness, District 5 Metropolitan Council Representative (arrived at 5:20
p.m.); and Randy Johnson, District 5 County Commissioner (arrived at 5:21
p.m.).
Legislators Present:
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; Pam Dmytrenko, Assistant to City Manager; and Cheryl Krumholz,
Recording Secretary.
Item #1
City Manager Orduno stated the City's most significant concerns are the State deficit and
continued airport noise mitigation efforts.
Mayor Kirsch stated the City Council wants to work with the Legislature to obtain proper
airport mitigation.
State Representative Dan Larson responded that the Metropolitan Airports Commission
(MAC) and airlines need to be included in these discussions. He added that communities requesting
State funding are in a bad situation.
Council Member Sandahl asked if creating a special tax increment financing (TIF) district in
the noise impacted area of Richfield was possible.
Representative Larson stated that as long as Ron Abrams remains Chair of the Tax
Committee, Richfield's position for TIF worsens. He added it is a negotiating position to be brought
forward.
Special Worksession Minutes
-2-
December 10, 2002
Council Member Enger stated he believed the rental car revenues should be considered
because it doesn't appear detrimental to Northwest Airlines (NWA).
Representative Larson stated rental car tax is consistently considered an option, but airport I
revenues need to be used according to certain guidelines. He added that NWA needs to be
considered because any increase affects their business.
Mayor Kirsch agreed it was a good idea to include NWA in discussions.
State Senator Jane Ranum stated it remains to be seen if Governor-Elect Pawlenty includes
rental car fees as a tax.
Council Member Sandahl stated that Richfield's budget is based upon anticipated Local
Government Aid (LGA) from the State so there is great concern if the State reduces that revenue to
the City.
Mayor Kirsch expressed concern regarding wine sales in grocery stores returning to the
Legislature because Richfield's liquor sales are used to fund park improvements.
Council Member Sandahl added that the City Council has taken a strong stand against illegal
sales to minors and if sales are in grocery stores, there is a lack of control.
Representative Larson said that alcohol sales in grocery stores is returning to the Legislature
because the Grocery Association is making a full court press.
Council Member Rosenberg stated that she and Council Member Ulrich recently returned from
the National League of Cities Conference and during a National Organization to Insure a Sound
Environment (NOISE) meeting, she realized Richfield has the worst airport noise situation than any
other city. She added that because MAC is a private entity, working with them is more difficult.
Representative Larson said there was a victory in obtaining funds previously so airport I
mitigation efforts are moving forward. He added that the Legislature's first responsibility is to solve
the budget problem.
Metropolitan Council Representative Phil Riveness stated NWA has a strong influence with
Governor-Elect Pawlenty so potential changes on the MAC may dramatically impact communities.
Council Member Sandahl encouraged Hennepin County to provide financial support to first-
ring suburbs.
County Commissioner Randy Johnson said the County looks to Richfield for roadside
improvement and enhancement ideas along 66th Street, including affordable housing. He added the
costs would be shared between the County and City.
Council Member Sandahl stated the City's budget was increased to include tree planting along
main thoroughfares to improve amenities.
Mayor Kirsch expressed appreciation to the County for assisting the City in undergrounding
the utility lines at Veterans Memorial Park of Richfield.
Council Member Enger asked if regional park funds were available for Veterans Memorial
Park. He suggested pursuing the declaration of Veterans Memorial Park as a regional park to qualify
for funding.
Council Member Ulrich said Veterans Memorial Park is too small to be a regional park and the
only funding available is through grants.
Representative Riveness said bike trails could be considered commuter trails and
appropriation could be possible as congestion mitigation dollars.
Council Member Ulrich expressed caution in doing commuter trails because residents may not
like that in their neighborhood - there would need to be considerable communication and public
relations with the residents.
I
I
I
I
Special Worksession Minutes
-3-
December 10, 2002
City Manager Orduno asked the Legislators about their thoughts on LGA, adding that this a
huge issue due to disparities between some communities.
,~.
Senator Ranum said everything, including LGA, is on the table and that Richfield's approach
to their budget is wise.
Representative Riveness said circumstances are impossible and hoped there was a public
outcry from residents directly to the Governor.
Representative Larson said the situation is far worse than the forecast predicts.
County Commissioner Johnson stated he hoped the Legislature did not take local
governments' year-end reserves.
Administrative Services Director Devich agreed and said year-end reserves affect a City's
bond rating that could result in short-term borrowing and be disastrous. He asked the Legislators if
they knew what Governor Ventura will do about this year's final LGA payment to cities.
State Representative Paul Thissen said that at a Legislative orientation, it was stated that
Governor Ventura would not change anything on the final payment.
Representative Larson left at 6:07 p.m.
Senator Ranum asked if the League of Minnesota Cities (LMC) has made a legislative
proposal to address LGA.
Council Member Sandahl stated the LMC position.
City Manager Orduno suggested the Legislature phase out LGA and make it as equitable
among cities as possible.
Council Member Ulrich said there may need to be consideration of the consolidation of
services between very small suburbs, which could create savings. She asked Commissioner
Johnson for an update on recycling and waste disposal services.
County Commissioner Johnson said the County's services are rated one of the highest in the
area.
Administrative Services Director Devich requested the Legislature review the unfunded
mandate related to continued health insurance coverage for firefighters and police officers injured in
the line of duty who are no longer working.
Representative Riveness discussed the 1-494 ring route design and Sector 5 Transit.
Mayor Kirsch thanked the Legislators for their efforts and appreciation for what they can do for
Richfield.
The meeting was adjourned by unanimous consent at 6:19 p.m.
Date Approved: January 14, 2003
16, , 4~J!
()~!{~
Cheryl rumnblz
Recording Secretary