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12-10-02 Regular I I I CITY COUNCIL MEETING MINUTES Richfield, Minnesota Regular Meeting December 10, 2002 The meeting was called to order by Mayor Kirsch at 6:30 p.m. Members Present: Martin Kirsch, Mayor; Susan Rosenberg; Gertrude Ulrich; Sue Sandahl; and John Enger. 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; John Stark, Community Development Manager; Cheryl Krumholz, Recording Secretary; and Corrine Thomson, City Attorney. Staff Present: Robert Hall, 7309 Oliver Avenue, addressed the City Council on the signalization at Newton Avenue and 76th Street. He said the signal continues to indicate through traffic is permissible and road striping is incorrect even though it was promised over a year ago this matter would be resolved. Public Works Director Eastling explained the arrow painted on the pavement by Best Buy showing through movement allowed was put in error by the Opus contractor, but has already been removed. He added that the electrician is scheduled to replace the signal head this week. Mr. Eastling stated the goal all along has been to have the changes made by the time Best Buy employees occupy the new facility, which has been moved to February. George Holter, 6424 Emerson Avenue, addressed the City Council regarding costs for the vacation of an alley at 6305 Dupont Avenue that he requested several months ago. He said he did not believe the costs were due to the City because he gets no benefit from the decision of the neighbors, which he agreed to support, and the longer alley did not go in the way he originally proposed. He asked the City to absorb the costs. Public Works Director Eastling stated that he was not aware Mr. Holter originally proposed a longer alley than the one granted at 88 feet. He said administrative/engineering costs were based upon 88 feet and discussions revolved around that length. He requested staff discuss this matter further with Mr. Holter and report back to the City Council. _I Council Meeting Minutes -2- December 10, 2002 Mayor Kirsch led the audience in the Pledge of Allegiance. I M/Rosenberg, S/Ulrich to approve the minutes of (1) Special Concurrent City Council and HRA Worksession of November 20,2002; (2) Special City Council Worksession of November 20, 2002; and (3) Reqular City Council Meetinq of November 26, 2002. Motion carried 5-0. Item #1 Public Safety Director Scott administered the swearing-in of Richfield Police Officers Eric Turnquist and Eric Lammle. Item #2 I I Lynn Schoonmaker, Co-Chair of the Richfield Foundation, provided background related to the distribution of $11,000 in Richfield Foundation grants and eight $4,950 Youth Risk Behavior grants to organizations whose proposals were deemed to provide the best match to grant criteria and current community needs. Ms. Schoonmaker explained the Youth Risk Grants, which are awarded by the Richfield Foundation in collaboration of Tri-City Partners and City of Richfield using State Tobacco Settlement Funds allocated to Tri-City Partners. Jon Schoonmaker, Richfield Foundation Co-Chair; Joan Heimberger, Richfield Foundation Treasurer; and Sally Parsons, Tri-City Partners; presented the grants to representatives of the following organizations: Richfield Foundation Funds Bridging, Inc. ($1250) Cornerstone ($1250) Family and Children's Service ($1000) Fraser Community Services ($1000) Friendship Ventures ($750) Oak Grove Lutheran Church - Support & Housing Assistance for Families Enduring Hardships (SAFE) ($1000) Richfield Community Center - Older Adult Computer Program ($1250) Storefront Group ($1500) Senior Community Services - Household and Outside Maintenance for Elderly Program (H.O.M.E.) ($1000) Y outhNet - Passport Scholarships and Activity Catalog ($1000) Youth Risk Funds I Youth Net - Passport Scholarships and Activity Catalog ($300) Faith Pentecostal Church - F.I.S.H. (First Serve Him) Program ($1,200) Richfield Community Education ($520) Richfield Middle School - Outdoor play equipment ($1500) Richfield Recreation Services Department - Healthy food choices at concession ($900) I I I ..;'~"""---- . Council Meeting Minutes -3- December 1 0, 2002 YMCA - Southdale Branch ($550) The City Council thanked the Richfield Foundation for their efforts. Item #3 M/Sandahl, S/Rosenberg to approve the aqenda. Motion carried 5-0. Item #4 A. Approved City Manager's reappointment of Connie Murray and Paul Wasko for two-year terms as Hearing Examiners S.R. No. 284 B. Approved Condemnation Commissioners' award on Parcel 5, 7601 and 7611 Knox Avenue, at Fountainhead Apartments; 76th Street Widening Project S.R. No. 285 C. Approved Stipulation of Settlement for Parcel 6, 7539 Penn Avenue; 76th Street Widening Project S.R. No. 286 D. Approved to continue public hearing regarding preliminary plat for City Bella redevelopment project to January 14, 2003 S.R. No. 287 E. Removed from the consent calendar and placed on the regular agenda for consideration as Item 4A. F. Approved resolution granting subdivision waiver for 6944-13th Avenue S. R. No. 289 RESOLUTION NO. 9261 RESOLUTION AUTHORIZING A SUBDIVISION WAIVER 6944 13th AVENUE SOUTH This resolution appears as Resolution No. 9261 in Resolution Book No. 74. G. Approved resolution authorizing issuance of Educational Facilities Revenue Note, Series 2002, to finance property for benefit of Academy of Holy Angels, 6600 Nicollet Avenue S.R. No. 290 RESOLUTION NO. 9262 RESOLUTION APPROVING AND AUTHORIZING THE ISSUANCE OF ITS EDUCATIONAL FACILITIES REVENUE NOTE (ACADEMY OF HOLY ANGELS PROJECT), SERIES 2002, UNDER MINNESOTA STATUTES, SECTIONS 469.152 THROUGH 469.165, AS AMENDED, TO FINANCE PROPERTY FOR THE BENEFIT OF ACADEMY OF HOLY ANGELS; APPROVING THE FORM AND AUTHORIZING THE EXECUTION OF RELATED DOCUMENTS; AND PROVIDING FOR THE SECURITY, RIGHTS AND REMEDIES OF THE OWNERS OF THE NOTE Council Meeting Minutes -4- December 10, 2002 This resolution appears as Resolution No. 9262 in Re~olution Book No. 74. H. Approved extension of Contract No. A021020 with Hennepin County to allow continued access to property information system beginning January 1, 2003 through December 31, 2003 S.R. No. 291 I I. Approved canceling December 26, 2002 City Council meeting S.R. No. 292 J. Approved indemnification and cooperation agreement regarding Wold-Chamberlain Field Joint Airport Zoning Board and Minneapolis-St. Paul International Airport zoning ordinance (deferred from November 12,2002) S.R. No. 293 K. Approved request from Richfield Public Schools to waive all school district food licensing renewal fees and to waiveJees for any other taxing jurisdiction S.R. No. 294 L. Approved award of contract to Hawkins Inc. for soda ash in amount of $84,000 for 2003 and 2004 with option to renew for another two years S.R. No. 295 M. Approved award of contract to Cutler-Magner Company for quick lime in amount of $182,000 for 2003 and 2004 with option to renew for another two years S. R. No. 296 N. Approved award of contract to Mountain Environmental, Inc. for lime by-product disposal in amount of $86,940 for 2003 and 2004 with option to renew for another two years S.R. No. 297 O. Approved rejection of all bids for purchase and installation of HVAC improvements at City I Hall and authorization to readvertise and rebid project S.R. No. 298 Council Member Enger asked to remove Item 4E from the Consent Calendar and place it on the regular agenda as Item 4A. M/Rosenberg, S/Enger to approve the Consent Calendar as amended. Motion carried 5-0. Item #4A Council Member Ulrich made the following comments regarding the Consent Calendar: . 4A - acknowledged the efforts of the Hearing Examiners. . 4J - acknowledged staffs' awareness to defer this item on November 12 for further review before City Council approval. . 4K - explained the rationale for waiving fees for taxing jurisdictions, especially when the City Council is strict about charging fees in other instances. Item 4E. Consideration of approval of resolution establishing revised just compensation and authorizing purchase of apartment building at 6344 Cedar Avenue; Airport Noise Acquisition Program S.R. No 288 Council Member Enger stated he wanted separate action on this item because he believed the use of funds to purchase this property is an inappropriate use of the funds obtained by the Federal Government for airport mitigation. I I I I Council Meeting Minutes -5- December 10, 2002 - l I I I M/Rosenberg, S/Sandahl 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. 9260 RESOLUTION ESTABLISHING REVISED JUST COMPENSATION AND AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 6344 CEDAR AVENUE AIRPORT NOISE ACQUISITION PROGRAM Council Member Enger requested the clerk conduct a roll call vote. Motion carried 4-1. (Enger opposed.) This resolution appears as Resolution No. 9260 in Resolution Book No. 74. Council Member Sandahl stated she attended a meeting with MAC representatives; a representative from Congressman Sabo's office; John Dean, Richfield Attorney; and City staff present; and everyone believed this purchase to be appropriate. Item #5 ~ Council Meeting Minutes -6- December 10, 2002 City Manager Orduno reviewed Staff Report No.'s 299 through 311 regarding consideration of 2003 liquor license renewals as one public hearing. M/Rosenberg, S/Enger to close the public hearinq. Motion carried 5-0. I Mayor Kirsch asked if all the liquor licenses could be renewed with one action. City Attorney Thomson said a single motion could be taken, but any City Council Member could request separate action on any license. Mayor Kirsch stressed that the City Council only wants to see liquor establishments for renewals, not for failing the periodic compliance checks. M/Rosenberg, S/Sandahl to approve the followinq renewals: on-sale intoxicatinq and Sunday liquor licenses for Chi-Chi's, Inc., d/b/a Chic-Chi's Mexican Restaurante, 7717 Nicollet Avenue: on-sale intoxicatinq and Sunday liquor licenses for The Frenchmans, 1400 East 66th Street: on-sale intoxicatinq and Sunday liquor licenses, includinq the outside service of alcohol. for Wiltshire Restaurants, LLC d/b/a Houlihan's Restaurant & Bar, 6601 Lyndale Avenue; on-sale intoxicatinq and Sunday liquor licenses for Don Pablo's Operatinq Corporation d/b/a don Pablos, 980 West 78th Street: on-sale intoxicatinq and Sunday liquor licenses for Champps Operatinq Corporation d/b/a Champps Restaurant, 790 West 66th Street: on-sale intoxicatinq and Sunday liquor licenses for Paisan Inc., d/b/a Khan's Monqolian Barbeque, 500 East 78th Street: on-sale intoxicatinq and Sunday liquor licenses for The Ground Round Inc., d/b/a The Ground Round, 1500 East 78th Street: on-sale intoxicatinq and Sunday liquor licenses for Taco Morelos II, Inc., 2 West 66th Street: club on-sale and Sunday liquor licenses for Fred Babcock V.F.W. Post No. 5555, Inc., d/b/a four Nickels Food and Drink, 6715 Lake Shore Drive; club on-sale and Sunday liquor licenses for Minneapolis-Richfield American Leqion Post 435, 6501 Portland Avenue; on-sale wine and 3.2 I percent malt liquor licenses for Thompson's Fireside Pizza, Inc., d/b/a Fireside Pizza, 6736 Penn Avenue; on-sale wine and 3.2 percent malt liquor licenses for Kianq's Red Pepper, Inc., d/b/a Red Pepper Chinese Restaurant, 2902 West 66th Street; and on-sale wine and 3.2 percent malt liquor licenses for Subeck, Incorporated, d/b/a Ketsana's Thai Restaurant, 7545 Lyndale Avenue; with conditions as stated in appropriate Staff Report. Motion carried 5-0. Item #6 City Manager Orduno reviewed Staff Report No.'s 312 and 313 regarding consideration of 2003 pawnbroker and secondhand goods dealer license renewals as one public hearing. Mark Nichols, 8917 Xerxes Avenue, owner of Metro Pawn, stated he was available to answer questions. M/Rosenberg, StEnger to close the public hearinq. Motion carried 5-0. I M/Rosenberg, S/Sandahl to approve the renewal of pawnbroker and secondhand qoods dealer licenses for Metro Pawn & Gun, Inc., 7529 Lyndale Avenue: and the renewal of pawnbroker I I I '~"P~~~t""". "~-"'1"4"""""~"':;"';.~ Council Meeting Minutes -7- December 1 0, 2002 and secondhand qoods dealer licenses for Capital Cash LLC, d/b/a Hy's Pawn. 6414 Nicollet Avenue; with conditions as stated in appropriate Staff Report. Motion carried 5-0. Item #7 Council Member Ulrich stated she was recusing herself from Items 7, 8 & 9 because she owns property in the project area. Council Member Ulrich stepped down from the dais and left the Council Chambers. City Manager Orduno reviewed Staff Report No. 314 regarding consideration of a resolution approving modifications to the Redevelopment Plan for Richfield Redevelopment Project Area; a resolution modifying the Tax Increment Financing Plan for Interchange West and Lyndale Gateway Tax Increment Financing District within Richfield Redevelopment Project Area; and a resolution establishing the Lyndale Gateway West Tax Increment Financing District within the Richfield Redevelopment Project Area and adopting a Tax Increment Financing Plan. Community Development Manager Stark presented an historical background of this area and previous redevelopment proposals. Mr. Stark summarized the process used to select the Cornerstone group and their proposal. He stated that ultimately this project would not be feasible without the use of Tax Increment Financing (TIF). Mr. Stark stated that because of the need for TIF assistance on this project, there are three related actions before the City Council for consideration at this time. He then described each of the three items, including the application of the "But For" test. Mr. Stark stated that the consulting firm of Short, Elliot, Hendrickson (S.E.H.) conducted two separate studies of the area. The first study was entitled "Blight Assessment" and describes the conditions of blight in the area. The second study, entitled the "Redevelopment Eligibility Assessment", provides a technical analysis of the requirements for establishing a TIF district. The findings of the S.E.H. studies included the conclusions that: a) the area is blighted, and; b) that the area meets the technical requirements required for the establishment of a TIF district. Mr. Stark stated to meet the definition of structurally substandard a property must meet both the "conditions test" and the "code test". In the conditions test a structure must meet a definitional requirement of structurally substandard. In the code test, the cost of bringing a structure up to current codes must cost more than 15% of the replacement cost of that structure in order to qualify as structurally substandard. Mr. Stark reported that each property report entitled "Report on Structurally Substandard Building" will be renamed "Report on Building Condition". Also the report on 7600 Lyndale Avenue will be revised to reflect there are no bedrooms on the property in the Fire Protection/Egress Section. The public record will contain the corrected information. Council Meeting Minutes -8- December 10, 2002 Council Member Rosenberg asked if anything different was done in the Lyndale Gateway West project area than in the Interchange West project area as it relates to the blight issue. Community Development Manager Stark stated that extra best efforts were made to contact the properties. He noted that the four properties not receiving interior inspections were not found substandard. Council Member Enger asked about the property base determination in the Lyndale Gateway West project related to TIF. Mr. Stark stated 21 parcels are the base for the Lyndale Gateway West TIF District and the base determines the taxes that go to the taxing jurisdictions. City Attorney Thomson added that the east side of Lyndale Avenue tax increment continues and the west side of Lyndale Avenue becomes a new TIF District. The amount of tax increment generated is not reduced. Sid Inman, Ehlers & Associates, explained the tax increment affect on new projects. Council Member Enger asked if the district is 15 years, with the option to extend to 25 years. I Mr. Stark stated there is an ability and intention for a 15-year district, but the option to extend to 25 years is available if tax rates decrease, property values decrease or property sales do not meet expectations. Mr. Inman added that the extended time option is to protect the City. Robert Hall, 7309 Oliver Avenue, addressed the City Council regarding the legal notice on I this matter in the November 28 Sun Current. He stated the tax increment from the district may be spent on eligible project uses determined by the City Councilor Housing and Redevelopment Authority. He said the citizens should not be subject to tax because it is an unjust burden with no stipulation on how the funds are spent and continuing beyond the tax increment obligation is not right. Mr. Hall expressed concern regarding the price of the properties, traffic patterns, and that the City Council is voting on establishing a TIF District before there is an actual project. Mr. Inman explained the tax increment restrictions regulated by State Statute. M/Rosenberg, S/Sandahl to close the public hearinq. Motion carried 4-0. (Ulrich recused.) Council Member Sandahl asked the City Attorney if the City Council should consider the public versus private purpose on this project. City Attorney Thomson stated it was advisable for the City Council to comment on the purpose in the event this project was challenged in court. Council Member Sandahl stated that without the TIF District for Lyndale Gateway West, nothing would happen in this area which has tried to be redeveloped since 1985. She believes the west side of Lyndale leaves a bad impression as a gateway to Richfield and the east side development (Casteel Place and Twin City Christian Home) expected the west side improvements. She added the public will benefit greatly to upgrading the commercial area and the additional residential - the public benefit far outweighs any private benefit. Council Member Rosenberg expressed support for Council Member Sandahl's comments. She added that discussions with residents indicate the area needs redevelopment. She stated it was a public benefit to redevelop. I I I I - 'i'..'..... Ji:'~ -~'\..>;j/-P.;-;.-L Council Meeting Minutes -9- December 10, 2002 Mayor Kirsch agreed that Casteel Place and Twin City Christian Home on the east side of Lyndale Avenue expected the west side'to be redeveloped. He also agreed that residents comment on the need to develop one of Richfield's major gateways. He said the current commercial buildings are not structurally safe. He stated the public benefit outweighs the private benefits. Council Member Enger stated the public benefits with the privately owned housing units as part of the components of the Cornerstone development project. He agreed the area was shabby. He said he was pleased that the project was going to happen and it was needed, but he was not pleased with all the aspects of the project. City Manager Orduno stated that in addition to the improved visual and economic components of the project, traffic flow and the public's safety are important. She added it is a public benefit to improve the ingress and egress of traffic access. Council Member Sandahl expressed agreement with the City Manager's comments. She said the current storefront parking is on public right-of-way. The proposed underground and surface parking will provide safer parking for residents and customers. She added that alternative types of housing is also being provided. Mayor Kirsch thanked City staff for their efforts in pursuing development in this area. City Manager Orduno said this has been a very collaborative approach between City staff, consultants, and Ehlers & Associates to pursue creative ways to benefit the community. Council Member Enger asked what properties did not have interior inspections. Jason Zemke, S.E.H., said four properties had only exterior inspections: 7609 and 7633 Aldrich Avenue and 7600 and 7614 Lyndale Avenue. M/Rosenberg, S/Enger 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. 9263 RESOLUTION APPROVING MODIFICATIONS TO THE REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA Motion carried 4-0. (Ulrich recused.) This resolution appears as Resolution No. 9263 in Resolution Book No. 74. M/Rosenberg, S/Enger 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. 9264 RESOLUTION MODIFYING THE TAX INCREMENT PLAN FOR THE INTERCHANGE WEST AND L YNDALE GATEWAY TAX INCREMENT FINANCING DISTRICT (A REDEVELOPMENT DISTRICT) WITHIN THE RICHFIELD REDEVELOPMENT PROJECT AREA Motion carried 4-0. (Ulrich recused.) This resolution appears as Resolution No. 9264 in Resolution Book No. 74. M/Rosenberg, S/Enger that the followinq resolution be adopted, that it be spread in the resolution book and that it be made part of these minutes: Council Meeting Minutes -10- December 10, 2002 RESOLUTION NO. 9265 RESOLUTION ESTABLISHING THE L YNDALE GATEWAY WEST TAX INCREMENT FINANCING DISTRICT WITHIN THE RICHFIELD REDEVELOPMENT PROJECT AREA AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR I Motion carried 4-0. (Ulrich recused.) This resolution appears as Resolution No. 9265 in Resolution Book No. 74. Item #8 City Manager Orduno reviewed Staff Report No. 315 regarding continuation of a public hearing and second reading of a transitory ordinance vacating the alley right of way in the Lyndale Gateway West Project Area to January 14, 2003. M/Enger, S/Rosenberg to continue public hearinq and second readinq of a transitory ordinance vacatinq the alley riqht-of-way in the Lyndale Gateway West proiect area until January 14, 2003. . Motion carried 4-0. (Ulrich recused.) Item #9 I City Manager Orduno reviewed Staff Report No. 316 regarding consideration of a resolution authorizing an amendment to a Planned Unit Development and a new Final Development Plan and Conditional Use Permit for a mixed-use development in the 7600 block between Lyndale and Aldrich Avenues. Community Development Manager Stark explained an amended planned unit development (PUD) was necessary because the previous developer, CSM, rezoned the property to a PUD for a proposed commercial development only and the Cornerstone proposal is for commercial and residential development. He reviewed the findings necessary to issue a conditional use permit (CUP), and final development plan (FDP). Dennis Sutliff, Cornerstone architect, presented and reviewed the site plans and building elevations. He said there are 145 surface parking stalls and 126 or 128 underground stalls, depending upon the size of the dumpsters. Mayor Kirsch asked if parking regulations are met. Mr. Stark said dependent on the proportion of restaurant uses, the amount of parking is more than sufficient. Council Member Sandahl asked if a second story or a higher building on the southeast corner for additional office space was possible. I I I I '_'~-:' ""-~,~~\,,,,- -~- 1fI"';'- Council Meeting Minutes -11- December 10,2002 Mr. Sutliff explained that additiona!pffice space was cost neutral and somewhat risky so the developer did not pursue this aspect. Readded that additional space would also mean separate underground parking with a separate access to meet City code. Council Member Enger asked if there was anyon-street parking. Mr. Sutliff said no on street parking is planned for Lyndale Avenue, 76th or 77th Streets, but would be available on Aldrich Avenue. Council Member Sandahl asked about bike lanes and bike parking. Mr. Sutliff explained the City's intention of designating a bicycle lane on 76th Street. He also said residential bike storage would be provided to prevent bikes to be hung on balconies. Mayor Kirsch expressed appreciation to the developer for working out a better plan for the area. Robert Hall, 7309 Oliver Avenue, expressed concern regarding the $275,000 to $300,000 cost of the town homes because it was extremely unusual to pay that amount for Richfield properties. He asked if any market research was conducted. He added that the original plan had more affordable housing. He asked if the Met Council's requirement to have 20% low income housing in a new project was met. Community Development Manager Stark stated a detailed market analysis was done and there is a large demand for townhomes. He said the 30% affordable housing requirement was met as set by the Met Council. Mr. Hall asked if affordability and low income are synonymous. Mr. Stark said yes, per the Met Council goals. M/Rosenberg, S/Enger to close the public hearinq. Motion carried 4-0. (Ulrich recused.) City Manager Orduno stated Staff Report No. 316 should be inserted into the resolution in NO.1 under NOW, THEREFORE, BE IT RESOLVED. Council Member Rosenberg stated she anticipates the town homes would be sold before they are built. Council Member Sandahl agreed there would be no problem selling the townhomes. Council Member Enger stated he had a problem with the $300,000 average price of the homes and asked the developer to reassure him they will sell. Heidi Kurtze, Cornerstone Group Project Manager, stated the market study is accurate and the developer would not proceed if the housing were not sure to sell. She added that 50% needs to be pre-sold before construction begins. Council Member Enger stated that it was his goal when redevelopment for this area was originally proposed to have Best Buy employees live in this area. Ms. Kurtze said businesses in the area are targeted to have their employees live in the development. Council Member Sandahl thanked staff and the developer for a job well done. M/Rosenberg, S/Enger that the Final Development Plan approval is continqent upon the followinq stipulations and that the followinq resolution be adopted, that it be spread in the resolution book and that it be made part of these minutes: Council Meeting Minutes -12- December 10, 2002 . That the recipient of this conditional use permit record this resolution with the County, pursuant to Minnesota statutes section 462.36, Subdiyision 1 and Richfield Zoninq Code 546.05, Subdivision I L. . That the property be replatted; . That a final stormwater manaqement plan, includinq on-site stormwater pick-up, be submitted to and approved by the Director of Public Works; . That a finallandscapinq plan be submitted to and approved by the Director of Community Development; . That a siqnaqe plan be submitted to and approved by the Director of Community Development: . That a final sediment and erosion control plan, includinq tree protection specifications, be submitted to and approved by the Director of Public Works; . That a liqhtinq and photometries plan, includinq details for how liqhtinq fixtures will coordinate with those provided in the city's streetscape, be submitted to and approved by the Director of Community Development: . That a detailed plan for removal of portions of the sound wall, includinq plantinq bed restoration, be submitted to and approved by the Director of Public Works; . That a parkinq plan, includinq a detailed allocation description of which stalls are desiqnated for which uses, be submitted to and approved by the Director of Community Development; . That the existinq alley be vacated; and . The conditional use permit shall remain in effect for so lonq as conditions requlatinq it are observed, and the conditional use permit shall expire if normal operation of the use has been discontinued for 12 or more months, as required by the Zoninq Ordinance, Section 546.05, Subd. ~. RESOLUTION NO. 9266 I RESOLUTION AUTHORIZING AN AMENDMENT TO A PLANNED UNIT DEVELOPMENT AND AUTHORIZING A NEW FINAL DEVELOPMENT PLAN & CONDITIONAL USE PERMIT FOR THE 7600 BLOCK BETWEEN L YNDALE AND ALDRICH Motion carried 4-0. (Ulrich recused.) This resolution appears as Resolution No. 9266 in Resolution Book No. 74. Item #10 City Manager Orduno reviewed Staff Report No. 317 regarding an ordinance amendment to the Richfield City Code to create Section 325 for an Administrative Hearing Enforcement Program and a resolution for a summary publication of the ordinance amendment. M/Rosenberg, S/Sandahl that this constitutes the Second Readinq of Bill No. 2002-23 an amendment to the Richfield City Code to create Section 325 for the Administrative Hearinq Enforcement Proqram, that it be published in the official newspaper and that it be made part of I these minutes; and that the followinq resolution be adopted, that it be spread in the resolution book and that it be made part of these minutes: ;1 I I -- - - -- - ---~{~"~ ~~~~- Council Meeting Minutes -13- December 10, 2002 RESOLUTION NO. 9267 /;:o-,tn:::' T'~ }, RESOLUTION AUTHORIZING SUMMARY PUBLICATION OF BILL NO. 2002-23 Motion carried 4-0. (Ulrich absent.) This resolution appears as Resolution No. 9267 in Resolution Book No. 74. Item #11 City Manager Orduno reviewed Staff Report No. 318 regarding resolutions approving the 2002 Revised/2003 Proposed Budget and Tax Levy and related resolutions. Mayor Kirsch stated public testimony was taken at the public hearing on December 2, 2002; therefore, since City Council action is to be taken tonight, State law prohibits taking public testimony. M/Sandahl, S/Rosenberg, that the followinq resolutions be adopted, that they be spread in the resolution book and that they be made part of these minutes: RESOLUTION NO. 9268 RESOLUTION ADOPTING A PROPOSED BUDGET AND TAX LEVY FOR THE YEAR 2003 RESOLUTION NO. 9269 RESOLUTION AUTHORIZING BUDGET REVISIONS RESOLUTION NO. 9270 RESOLUTION AUTHORIZING REVISION OF 2002 BUDGET OF VARIOUS DEPARTMENTS RESOLUTION NO. 9271 RESOLUTION AUTHORIZING ANNUAL ADJUSTMENT TO CITY'S MILEAGE REIMBURSEMENT RATE TO CONFORM TO INTERNAL REVENUE SERVICE STATUTORY MILEAGE REIMBURSEMENT RATE RESOLUTION NO. 9272 RESOLUTION ESTABLISHING WASTEWATER SERVICE RATES AND CHARGES, WATER RATES AND CHARGES, SPECIAL WATER SERVICE CHARGES, STORM SEWER RATES AND CHARGES, AND 6.5% PENALTY ON PAST DUE ACCOUNTS RESOLUTION NO. 9273 RESOLUTION ADOPTING THE 2003 CAPITAL IMPROVEMENT BUDGET RESOLUTION NO. 9274 RESOLUTION ADOPTING THE 2004-2008 CAPITAL IMPROVEMENT PROGRAM RESOLUTION NO. 9275 RESOLUTION ESTABLISHING POLICIES, PROCEDURES, AND FEES FOR THE ASSESSING DIVISION Council Meeting Minutes -14- December 10, 2002 RESOLUTION NO. 9276 RESOLUTION RELATING TO PURCHASING PRACTICES IN THE CITY OF RICHFIELD AMENDING RESOLUTION NO. 8298 RESOLUTION NO. 9277 RESOLUTION RELATING TO THE 2003 SPECIALIZED PAY PLAN RESOLUTION NO. 9278 RESOLUTION RELATING TO THE 2003 GENERAL SERVICES SALARY COMPENSATION PLAN RESOLUTION NO. 9279 RESOLUTION RELATING TO THE 2003 MANAGEMENT SALARY COMPENSATION PLAN RESOLUTION NO. 9280 RESOLUTION ESTABLISHING 2003 LICENSE, PERMIT AND MISCELLANEOUS FEES PURSUANT TO THE PROVISIONS OF APPENDIX D OF THE ORDINANCE CODE OF THE CITY OF RICHFIELD RESCINDING RESOLUTION NO. 9139 Council Member Sandahl stated that due to the potential Local Government Aid (LGA) reduction, she is not taking a position to reduce the gross tax levy because it may be needed in its entirety. Council Member Rosenberg stated that local governments have difficult decisions to make. She commended staff for a remarkable budget. Mayor Kirsch thanked his colleagues for their initiatives and directives to staff to make budget reductions. He acknowledged staffs' foresight in preparing the budget. Council Member Enger asked if the remaining LGA payment is still anticipated to be received. City Manager Orduno said the payment is due December 20 and based upon discussions with local legislators at tonight's Worksession, it appears the Governor has no plans to unallocate or delay the payment. Council Member Enger asked if the 2003 LGA allocation is included in the budget. He also asked if the City was prepared in the event the full payment is not received. Finance Manager Regis said $3.5 million is budgeted. City Manager Orduno said staff has been directed to review their department budgets for a second round of reductions and several scenarios will be presented to the City Council at the January Goal Setting Worksession. She added that service delivery will be reviewed. Council Member Enger stated he hoped the City would save dollars in 2003 even if the projected LGA is received. He asked if any additional monies go toward the City's fund balance. Finance Manager Regis said any surplus goes into the fund balance. He said the 2002 fund balance of $1.2 million is due to significant cuts made throughout the year. City Manager Orduno stated it is fiscally prudent and financially responsible to plan for additional budget reductions. Council Member Enger referenced an article in the November 29, 2002 St. Paul Pioneer Press related to taxes and asked if the attainable 2002 tax increase in Richfield is due to property value increases or State cuts. I I I I I I ~,; ;r.- .--- Council Meeting Minutes -15- December 10, 2002 City Manager Orduno stated the Gity controlled very well what could be controlled. She said the General Fund increase is minirrYal:' ,j, Council Member Enger sated he firmly believed the City's 2003 tax was not increased because of the significant tax increase of 50% in the City's portion in 2002. Council Member Sandahl stated taxes were discussed at the last City Council meeting. She cautioned the tax comparison of cities because LGA adjustments are different. Council Member Sandahl requested a roll call vote. Motion carried 3-1. (Enger opposed, Ulrich absent.) These resolutions appear as Resolution No.'s 9268 through 9280 in Resolution Book No. 74. Council Member Enger stated he voted against the budget because the 2003 5.93% reduction over the 2002 budget is not sufficient. Council Member Rosenberg stated Council Member Enger is acting irresponsibly to his constituents and staff by not addressing his concerns regarding the budget prior to tonight, especially when Department Directors were available at a previous Special City Council Worksession for discussion and he did not raise any questions. She said his only discussion at the Worksession was considering fire services consolidation. Council Member Enger stated the City has too large a staff. He added that when he brought staffing levels up at the Worksession, he was told staffing was the City Manager's responsibility. Mr. Enger stated that due to lost homes in New Ford Town/Rich Acres, the same number of staff as in 1998 is not necessary to maintain the current size of the City. City Manager Orduno stated staff levels are directly related to service delivery. It is City Council policy to cut, reduce or change services and then the City Manager determines appropriate staffing. Council Member Enger stated it was not the City Council's responsibility to determine service adjustments - the City Council recommends budget cuts and the City Manager determines service levels. Mayor Kirsch disagreed with Council Member Enger - the City Council determines service delivery policy. Council Member Sandahl disagreed with Council Member Enger - she said City Council sets policy and staff administers the policy. The City Council informs staff of what services to eliminate and then the City Manager determines the staff level. Council Member Enger explained how his employer of 22 years, City of St. Paul, has determined budget cuts for the past nine years. He added that he is not suggesting cuts in service, but a change in the way they are provided - increased efficiency. Mayor Kirsch said the City Council sets direction and staff administers the direction. Staff does not arbitrarily cut services. Council Member Sandahl said it cannot be assumed lost homes have not been replaced. She added that the City's redevelopment efforts take a great deal of staff time. Council Member Enger said the City has lost a significant amount of area. Council Meeting Minutes -16- December 10, 2002 Item #12 I City Manager Orduno reviewed Staff Report No. 319 regarding a resolution establishing a Richfield Arts Commission and a resolution establishing a Richfield Celebrations Commission. Tom Rublein, 2016 West 64th Street, spoke in support of the two new commissions. He said the Arts Commission is a recommendation from the 2020 Vision Report and the Celebrations Commission reaches people with a variety of interests. Mr. Rublein said it is the City Council's responsibility to listen to all citizens and City advisory commissions provide recommendations to the City Council. Council Member Enger asked if there is any budgeted staff time for these commissions. City Manager Orduno said no staff liaison is included, only City Council liaisons. Council Member Sandahl recommended the Arts Commission consist of 15 members who are residents and/or stakeholders in Richfield; initial appointments of 1-2-3 years to establish staggered terms and thereafter three-year terms; and no member can serve more than three consecutive terms. Council Member Sandahl recommended the Celebrations Commission consist of an unlimited number of members who are residents and/or stakeholders in Richfield; initial appointments of 1-2-3 years to establish staggered terms and thereafter three-year terms; and no member can serve more than three consecutive terms. I M/Sandahl, S/Rosenberg that the followinq resolutions be adopted, that they be spread in the resolution book and that they be made part of these minutes: RESOLUTION NO. 9281 RESOLUTION ESTABLISHING A RICHFIELD ARTS COMMISSION RESOLUTION NO. 9282 RESOLUTION ESTABLISHING A RICHFIELD CELEBRATIONS COMMISSION Motion carried 4-0. (Ulrich absent.) These resolutions appear as Resolution No.'s 9281 and 9282 in Resolution Book No. 74. Item #13 City Manager Orduno reviewed Staff Report No. 320 regarding consideration of a conceptual funding method for Lyndale Gateway West redevelopment project. Community Development Manager Stark reviewed the proposed funding method, which I was previously discussed at a Special Concurrent City Council/HRA meeting on November 20, 2002. He stated the financing difficulties in this development are due to changes in State tax law and the peculiarities of the site. He reviewed the three primary difficulties in financing the project. Mr. Stark reviewed the financing methods to make this project feasible. He said the goal is to provide as little risk as possible to the HRA and City. I I I ,-~.I-:.,....." " Council Meeting Minutes -17- December 1 0, 2002 Mr. Stark reviewed the developer's obligations to be met before funding is available. He said if this financing method is not possible, the project is over. He added that in the first two phases of the Lyndale Gateway development (the Mainstreet Village senior apartments and offices and the Casteel Place townhomes) needed a supplemental form of financing. Council Member Enger asked about the construction timeline. Mr. Stark said it depends on pre-sale requirements, but it is anticipated construction will begin no later than August 2003 and will be in a phased approach. Council Member Enger stated he has a problem with the financing, but is not prepared to vote against the project because he has been reasonably assured by Ehlers and the developer that the project will be successful. He asked about alternative sources for TIF if the developer declares bankruptcy. Council Member Enger said there is a general obligation bond and HRA and City resources. Mr. Stark stated the pre-sale offers protection. Mayor Kirsch said he recognizes the risks, but there is no alternative if the project is to move forward. M/Mayor Kirsch, S/Rosenberg to approve, in concept, the proposed fundinq method for the Lvndale Gatewav West redevelopment proiect. Motion carried 4-0. (Ulrich absent.) No Report. Council Member Sandahl suggested the City Council announce the Enterprise Facilitator Hour in the Heredia Room at the first meeting of the month. M/Rosenberg, S/Sandahl that the followinq claims and pavrolls be approved: RICHFIELD BANK & TRUST CO. AlP Checks: 120479 - 120797 PAYROLL 33667 - 33821 TOTAL $ 1,072,370.42 $ 427,250.33 $ 1,499,620.75 Motion carried 4-0. (Ulrich absent.) The Regular City Council meeting was adjourned by unanimous consent at 9:50 p.m. -~ Council Meeting Minutes -18- December 10, 2002 Date Approved: January 14. 2003 (4d~~ Cheryl Kmmholz . Recording Secretary I I I I I I CITY OF RICHFIELD, MINNESOTA Bid Opening November 18,2002 11 :00 a.m. Disposal of Lime By-Product City Bid No. 02-08 Pursuant to requirements of Resolution NO.1 015, a meeting of the Administrative Staff was called by Deborah Guiher, Deputy City Clerk, who announced that the purpose of the meeting was to receive, open and read aloud, bids for disposal of lime by-product, as advertised in the official newspaper on October 31, 2002 and the Construction Bulletin on November 1, 2002. Present: Deborah Guiher, Deputy City Clerk Cheryl Krumholz, City Manager Representative Judy Bergren, Water Plant Supervisor The following bids were submitted and read aloud: Bidder's Name/City Bid Security Total Base Bid Paul Montain Cashiers check $ 86,940.00 Lino Lakes presented The Deputy City Clerk announced that the bids would be tabulated and considered at the December 10, 2002 City Council Meeting. (L))J.-I~~ Deborah Guiher Cdt~u Deputy City Clerk I I I CITY OF RICHFIELD, MINNESOTA Bid Opening November 18, 2002 10:30 a.m. Water Treatment Plant Chemicals Soda Ash City Bid No. 02-06 Pursuant to requirements of Resolution No.1 015, a meeting of the Administrative Staff was called by Deborah Guiher, Deputy City Clerk, who announced that the purpose of the meeting was to receive, open and read aloud, bids for water treatment plant chemicals - soda ash, as advertised in the official newspaper on October 31,2002. Present: Deborah Guiher, Deputy City Clerk Cheryl Krumholz, City Manager Representative Judy Bergren, Water Plant Supervisor The following bids were submitted and read aloud: Bidder's Name/City Bond Total Base Bid Hawkins Inc. 5% Bid Bond $ 84,000.00 Minneapolis Univar USA 5% Bid Bond $ 86,600.00 S1. Paul The Deputy City Clerk announced that the bids would be tabulated and considered at the December 10, 2002 City Council Meeting. O~--!:--{'~Vt~ ~~ J Deborah Guiher Deputy City Clerk I I I CITY OF RICHFIELD, MINNESOTA Bid Opening November 21, 2002 10:30 a.m. Water Treatment Plant Chemicals Quick Lime City Bid No. 02-07 Pursuant to requirements of Resolution NO.1 015, a meeting of the Administrative Staff was called by Nancy Gibbs, City Clerk, who announced that the purpose of the meeting was to receive, open and read aloud, bids for water treatment plant chemicals - quick lime, as advertised in the official newspaper on October 31, 2002 and the Construction Bulletin on October 25, 2002. Present: Nancy Gibbs, City Clerk Cheryl Krumholz, City Manager Representative Tom Foley, Transportation Engineer The following bids were submitted and read aloud: Bidder's Name/City Bond Total Base Bid Cutler-Magner Presented $ 182,000.00 Duluth The City Clerk announced that the bids would be tabulated and considered at the December 10,2002 City Council Meeting. '---1 kiVv tr ~ Nancy Gibbs - City Clerk