01-22-02 Regular
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CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Meeting
January 22, 2002
The meeting was called to order by Mayor Kirsch at 6:40 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; Bruce Palmborg,
Community Development Director; Dan Scott, Public Safety Director; Chris
Regis, Finance Manager; Cheryl Krumholz, Recording Secretary; and
Corrine Thomson, City Attorney.
Robert Hall, 7309 Oliver Avenue, addressed the Council on when the strategic goals from
the January 4 Council/staff goal setting session will be available to the public.
City Manager Orduno said the goals will be in the February Your City, on the cable
television community bulletin board and on the City's website.
Mr. Hall wished to address the City Council on the Supplemental Environmental Impact
Statement for the Best Buy Campus, but Mayor Kirsch informed Mr. Hall that issue was on the
agenda and, therefore, can not be addressed during the Open Forum. The Mayor said Mr. Hall
could speak on this issue when it came before the City Council on the agenda.
Mayor Kirsch led the audience in the Pledge of Allegiance.
Council Meeting Minutes
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January 22, 2002
Council Member Enger referenced Item #2 in the January 8, 2002 City Council minutes,
suggesting that the Legislative Initiatives & Policies could be more thoroughly discussed with the
Legislators sometime in the future.
Council Member Enger referenced Item #11 in the January 8, 2002 City Council minutes,
asking for clarification on the Knox/Humboldt Avenues intersection.
Public Works Director Eastling stated the work was related to Knox Avenue south of 76th
Street.
M/Sandahl, S/Rosenberg to approve the minutes of the (1) Special City Council
Worksession on January 4, 2002; (2) Special City Council Worksession of January 8, 2002; (3)
Reqular City Council Meetinq of January 8, 2002; and (4) Special City Council Meetinq of January
10, 2002.
Motion carried 5-0.
Item #1
Jeff Hamiel, Metropolitan Airports Commission (MAC) Executive Director, stated the MAC is
continuing to move forward according to the 1998 Richfield MAC Noise Mitigation Agreement.
Mayor Kirsch asked what actions MAC has taken to encourage the Bloomington hotels that
will be acquired as part of the safety zone clearance, to relocate in Richfield.
Mr. Hamiel said the agreement does encourage relocation to the Cedar Avenue corridor, but
acquisition negotiations are not yet at that point. He explained MAC's project delays related to the
September 11 terrorist incident.
Council Member Sandahl asked about the status of the $10 million that Congressman Sabo
earmarked for use in Richfield.
Mr. Hamiel explained the movement of the FAA funds within MAC coffers to allow less
restricted use for noise mitigation efforts in Richfield. He said MAC would make these funds available
to improve mutually agreed upon properties.
Mayor Kirsch asked about the time frame for the MAC to spend the $10 million.
Mr. Hamiel said MAC and City staff will be meeting to discuss the time frame and affected
areas.
Council Member Sandahl asked if the westside of Cedar Avenue will remain part of Richfield.
She said she does not want a "creeping" airport.
Mr. Hamiel said the ownership of the land needs to be clarified and depends upon funding
sources.
Council Member Enger said some money has already been expended in Richfield for taking of
businesses.
Mr. Hamiel said this was not the same money, it was a different source of funding.
Council Member Enger said the $10 million is to be used to first acquire the homes on 18th
Avenue between 66th and 68th Streets as part of an airport activity and any money left over would
purchase the apartments on Cedar Avenue.
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Council Meeting Minutes
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January 22, 2002
City Manager Orduno said road improvements on 18th Avenue and its configuration will take
the homes on both sides of 18th Avenue from 66th to 68th Street.
Mr. Hamiel said the MAC is working with the FAA on the Part 150 Program and low frequency
noise standards. He said Richfield cannot be a pilot program for low frequency noise because the
Baltimore-Washington airport has already been used so Richfield is not considered a unique
situation.
Council Member Sandahl asked if the $10 million had yet been received by the MAC.
Mr. Hamiel said he wasn't sure, but $7 million should be received shortly. He said MAC will
not allocate from their coffers until the money is received because they virtually have no funds
available to advance.
Council Member Sandahl asked about height restrictions related to the new runway.
Mr. Hamiel said any restrictions will be made available to City staff.
Item #2
Council Member Enger presented a Certificate of Achievement for Excellence in Financial
Reporting from the Government Finance Officers Association to Finance Manager Chris Regis.
Council Member Sandahl reported on a partnership between the City and Fort Snelling
National Cemetery. She said the City provides leaves to Fort Snelling National Cemetery to insulate
gravesites for winter burials and the City provides woodchips that are used to construct temporary
roadways for Fort Snelling Cemetery burial sections. These coordinated activities save the City of
Richfield and Fort Snelling National Cemetery tens of thousands of dollars in addition to forging and
continuing a solid partnership. She credited City staff for partnering with a federal agency which
provides tax savings to the community and benefits the cemetery.
Item #3
Mayor Kirsch referenced 4A, asking to have the 2002 Local Board of Equalization date
changed to Tuesday, May 7,2002 at 6:30 p.m. due to a Council Member's scheduling conflict.
Council Member Enger referenced 4D asking if there are fees for the licenses.
City Manager Orduno answered yes.
Council Member Enger referenced 4C, asking to bring the pay equity report to a
Worksession for further understanding.
City Manager Orduno said Minnesota is the only state in the United States that has a pay
equity law. She suggested a one-on-one discussion with Council Member Enger to discuss the
report.
Council Meeting Minutes
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January 22, 2002
Council Member Enger agreed to contact the City Manager to schedule an appointment to
discuss the report.
Council Member Ulrich said current Metropolitan Council Representative Phil Riveness
should be recognized for his contribution on this issue in 1984.
City Manager Orduno requested the agenda be amended to include an additional item, a
resolution granting extension of time to file the approved plat for the Best Buy campus.
Mayor Kirsch made this Item 6A.
M/Rosenberg, S/Sandahl to approve the aqenda as amended.
Motion carried 5-0.
Item #4
A. Approved establishing Tuesday, May 7, 2002 for 2002 Local Board of Equalization S.R. No.
23
B. Approved resolution designating increase in City's contribution toward health insurance
premiums for International Union of Operating Engineers, Local 49 S.R. No. 24
RESOLUTION NO. 9141
RESOLUTION DESIGNATING CITY'S CONTRIBUTION
TOWARD HEALTH INSURANCE
PREMIUMS FOR EMPLOYEES COVERED BY THE
INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 49
This resolution appears as Resolution No. 9141 in Resolution Book No. 73.
C. Approved resolution pertaining to filing Pay Equity Report for Hennepin South Services
Collaborative with MN Department of Employee Relations S.R. No. 25
RESOLUTION NO. 9142
RESOLUTION PERTAINING TO FILING OF THE PAY EQUITY REPORT WITH THE MINNESOTA
DEPARTMENT OF EMPLOYEE RELATIONS
This resolution appears as Resolution No. 9142 in Resolution Book No. 73.
D. Approved itinerant place of amusement and itinerant food licenses for Richfield Visions, inc.
for Richfield Remodeling Fair at Richfield High School, 7001 Harriet Avenue, on January 26,
2002 S. R. No. 26
M/Rosenberg, S/Sandahl to approve the Consent Calendar as amended.
Motion carried 5-0.
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Council Meeting Minutes
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January 22, 2002
Item #5
City Manager Orduno reviewed Staff Report No. 27 regarding a resolution determining the
adequacy and approving the Record of Decision for the Best Buy Campus Supplemental
Environmental Impact Statement, make the findings of fact and conclusions contained in Exhibits A
and B, and approve the conditions of the approval identified under the Legal Basis of
Recom mendation.
Community Development Director Palmborg stated that a Supplemental Environmental
Impact Statement (SEIS) was prepared for the Best Buy Campus project to study the effects that
the closure of Highway 62 (the Crosstown) might have on traffic in regards to the Best Buy project.
He reviewed the potential mitigation measures, evaluation of mitigation measures and evaluation
of combined mitigation measures included in the Adequacy Determination and Record of Decision.
He said the Traffic Demand Management report will be on the February 12, 2002 City Council
agenda.
Community Development Director Palmborg reviewed the three standards necessary for
making a finding of adequacy on an SEIS which have been met by the Best Buy Campus SEIS.
He also reviewed the conditions of the approval.
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. 9143
RESOLUTION DETERMINING ADEQUACY OF THE SUPPLEMENTAL ENVIRONMENTAL
IMPACT STATEMENT AND APPROVING RECORD OF DECISION
BEST BUY CAMPUS
Council Member Sandahl asked Mr. Robert Hall to speak on this issue now that it was
before the City Council since he was not permitted to address it during the earlier Open Forum.
Mr. Hall was not present.
Council Member Sandahl asked if truck traffic on Penn Avenue could be restricted to
reduce noise.
Public Works Director Eastling said restricting traffic for other than the integrity of the road
is very difficult to do.
City Manager Orduno said there needs to be an Exhibit reference clarification within the
resolution.
City Attorney Thomson explained the clarification.
The revised resolution was accepted by Council Members' Sandahl and Rosenberg as an
amendment to their motion.
Motion carried 4-1. (Enger opposed.) This amended resolution appears as Resolution No.
9143 in Resolution Book No. 73.
Item #6
Council Meeting Minutes
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January 22, 2002
City Manager Orduno reviewed Staff Report No. 28 regarding a resolution calling for the
sale of $1,460,000 General Obligation Capital Notes, Series 2002A.
Finance Manager Regis explained the need for the Capital Notes (equipment certificates).
Council Member Sandahl asked what is purchased with the certificates.
Finance Manager Regis said items such as police cars, public works equipment, computer
equipment, fire equipment will be purchased.
Council Member Rosenberg asked if the equipment could be purchased without the
certificates.
Finance Manager Regis said it would be difficult because it would impact negatively the
Central Garage Fund cash balance.
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. 9144
RESOLUTION PROVIDING FOR THE SALE OF $1,460,000 GENERAL OBLIGATION
CAPITAL NOTES, SERIES 2002A
Larry Wozniczka, 6744 Wentworth Avenue, asked why the City would borrow funds when
there is money already in a fund for the same purchase.
Finance Manager Regis explained how and why the cash balance of the Internal Fund is
decreasing.
City Manager Orduno said using equipment certificates is a common and prudent practice
among cities.
Larry Wozniczka begged the City Council to reconsider the issuing of the Capital Notes. He
said the citizens deserved a detailed explanation for the drastic tax increase this year. He said it
appeared imprudent maneuvers are covering unexpected expenditures.
City Manager Orduno said there are no unexpected expenditures and this was all
discussed at the December 10 City Council meeting during the budget hearing.
Mr. Wozniczka said the budget message was not available until January, which is not in
compliance with the City Charter.
City Manager Orduno said it was available on December 10.
Council Member Enger said the City should have been raising taxes more in the past and
he didn't know why that was not done. He said the tax increase needs to be better detailed so a
lay person can fully understand why the City Council took the action they did. He said he
understood the need for equipment purchases, but suggested extending the life of police squads
by two to three years. He suggested the equipment approved at the last City Council meeting be
reviewed to see if the purchase could be delayed.
City Manager Orduno said she is currently meeting with Department Directors to discuss
budget reductions. She said all cuts are considered for a worst case scenario. She said the
reduction options would be presented to the City Council.
Council Member Enger asked if there were other ways to purchase equipment if Capital
Notes were not used.
Finance Manager Regis explained other funds that could be used, but fund balances would
be decreasing.
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Council Meeting Minutes
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January 22, 2002
Council Member Enger asked if leasing of equipment had been investigated.
City Manager Orduno said it is a City Council decision on how to purchase equipment. She
said using Capital Notes is not the only option.
Council Member Enger requested the leasing of equipment option be explored immediately.
He recommended not issuing the Capital Notes, but rather buy some equipment and review other
options on how to save money. He said to bring the Capital Notes back for consideration when
absolutely needed if it comes to the point of going bust. He said the City does not need to build a
reserve nest egg; he was sure the City could go another one to one and a half years.
Finance Manager Regis said the Information Technologies equipment fund is empty.
Council Member Enger asked if funds could be transferred from a different fund temporarily
for this equipment.
Finance Manager Regis asked what fund should be used.
Council Member Enger said he would rather not buy equipment than layoff staff.
City Manager Orduno said waiting on these purchases would not cover the $1.3 million
local government aid loss. She said laying off staff is the last thing wanting to be done, but all
options need to be explored. She said the levy for equipment certificates has been approved and if
they're not used, those impacts would need to be explored.
Mayor Kirsch called for the vote.
Motion carried 4-1. (Enger opposed.) This resolution appears as Resolution No. 9144 in
Resolution Book No. 73.
Item #6A
City Attorney Thomson explained that the resolution before the City Council is to extend the
time to file the approved plat for the Best Buy Campus. She said the plat was approved by the City
Council on January 8, 2002, and it must be recorded in the Hennepin County land records within
30 days. She said Richfield, Bloomington and Best Buy need to finalize utility easement
agreement issues and that process has taken longer than expected. She said she hoped the plat
would get filed within the 30-day period, but approval of this resolution extends the deadline to
February 27, 2002.
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. 9145
RESOLUTION AUTHORIZING EXTENSION OF TIME TO FILE
APPROVED PLAT FOR BEST BUY CAMPUS
Motion carried 5-0. This resolution appears as Resolution No. 9145 in Resolution Book No.
73.
Item #7
Council Meeting Minutes
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January 22, 2002
Mayor Kirsch stated the City Council held special meetings on January 16, 17 and 22 to
inteNiew persons interested in seNing on the City's advisory commissions.
terms:
Mayor Pro Tempore Sandahl reacrthe following appointments to fill expiring or vacant
ADVISORY BOARD OF HEALTH
Name
Vicki Snowden
Sunny Ray
Eric Crockett
Term Expires
January 31, 2003
January 31, 2004
January 31, 2005
CIVIL SERVICE COMMISSION
Name
Phil Mortenson
Term Expires
January 31, 2005
COMMUNITY SERVICES COMMISSION
Name
Gordon Vizecky
Barb Kritzman
John Easterwood
Bob Dietl
Kari Johnson
Term Expires
January 31, 2003
January 31, 2005
January 31, 2005
January 31, 2005
January 31, 2005
HUMAN RIGHTS COMMISSION
Name
Mike McGuire
Sandra Levine
Brent Pavia
Tashika Sykes
Billie Eisley
John Evenstad
Phayvanh Phithaksounthone
(Youth Term)
Term Expires
January 31, 2003
January 31, 2003
January 31, 2005
January 31, 2005
January 31, 2005
January 31, 2005
August 31, 2002
PLANNING COMMISSION
Name
Dave Gepner
Bill Kilian
Sean O'Malley
Term Expires
January 31, 2005
January 31, 2005
January 31, 2005
FRIENDSHIP CITY COMMISSION
Name
Estvardo Montero
Dave Delzer
Julie Vogl
Joe Garcia
Term Expires
January 31, 2004
January 31, 2005
January 31, 2005
January 31, 2005
Council Member Sandahl said Philip Mortenson was reappointed to the Civil Service
Commission even though this exceeds the three consecutive terms seNed limit. She said it
appears the Civil SeNice Commission may be disbanded so the City Council agreed it was
appropriate to reappoint Mr. Mortenson rather than appoint a new member.
Council Member Rosenberg said it was refreshing to have new residents apply for
commission appointments.
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Council Meeting Minutes
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January 22, 2002
M/Sandahl, S/Rosenberg to appoint persons to fill the expirinq or vacant terms on the City
advisory commissions.
Motion carried 4-1. (Enger opposed.)
Item #8
City Manager Orduno reported that the Supreme Court has just ruled to grant the City's
petition for appeal of the Appellant Court's decision in the Tax Increment Financing case filed
against the HRA and City by Walser Automotive. The Court expedited the process and accepted
the amicus briefs from the League of Minnesota Cities, Best Buy, National Association of Housing
and Redevelopment Officials and the Economic Development Association of Minnesota. All briefs
are due within the next 60 days.
City Attorney Thomson said the request by the Minnesota Institute of Public Finance was
also approved. She said the Supreme Court deemed this case to be significant and that it merited
review. She said the other organizations that asked to be heard were determined to have
particular perspectives to advise the court on its decision. She said no requests had been
submitted in support of the complainants, but the deadline had not yet passed for submission.
No one addressed the City Council.
Item #9
M/Rosenberg, S/Ulrich that the followinq claims and payrolls be approved:
RICHFIELD BANK & TRUST CO.
I NT Checks: 110599- 110623
H/C 113058 - 113415
PAYROLL 28512 - 28713
TOTAL
$ 57,285.34
$ 1,374,686.09
$ 518,661.68
$ 1,950,633.11
Motion carried 5-0.
The meeting was adjourned by unanimous consent at~O ~.m. ) / \ /)
Date Approved: Februarv 12. 2002 /:;ja,/h;; ~ ~
Marti Ki'rscll-/
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Cheryl K~OIZ rJ
Recording Secretary