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04-24-07 Regular ...... CITY COUNCIL MEETING MINUTES Richfield, Minnesota Regular Meeting April 24, 2007 I CALL TO ORDER The meeting was called to order by Mayor Goettel at 7:04 p.m. I ROLL CALL Members Present: Debbie Goettel, Mayor; Sue Sandahl; Fred Wroge; Bill Kilian; and Susan Rosenberg. Steve Devich, City Manager; Mike Eastling, Public Works Director; Bruce Palmborg, Community Development Director; Chris Regis, Finance Manager; Pat Smith, Community Development Manager; Betsy Osborn, Health Administrator; Brian Young, Utility Superintendent; Cheryl Krumholz, Recording Secretary; and Corrine Thomson, City Attorney. Staff Present: I OPEN FORUM No one was registered to speak. PRESENTATION OF COLORS AND PLEDGE OF ALLEGIANCE . Mayor Goettel led the audience in the Pledge of Allegiance. I APPROVAL OF MINUTES M/Rosenberg, S/Sandahl to approve the minutes of (1) Special City Council Worksession of April 1 O. 2007 and (2) ReQular City Council MeetinQ of April 10. 2007. Motion carried 5-0. Council Meeting Minutes -2- April 24, 2007 Item #1 PRESENTATION OF RICHFIELD RESTAURANT RECOGNITION AWARDS BY RICHFIELD ADVISORY BOARD OF HEALTH (COUNCIL MEMO NO. 70) Michelle Padua, Advisory Board of Health Chair, presented the restaurant recognition awards to: Full Service Restaurant Broadway Pizza - Winner Bon Apetit (Best Buy location) - Nominee Patrick's Bakery - Nominee Thompson's Fireside Pizza - Nominee Limited Service Food Service Starbucks - Winner Border's Cafe - Nominee Fast Food/Pizza Cafeteria Service Chipotle - Winner Quizno's - Nominee Taco Bell - Nominee Health Administrator Osborn acknowledged the efforts of the interview team who are members of the Richfield/Bloomington Food Collaborative. Item #2 PRESENTATION OF PROCLAMATION DESIGNATING MAY AS ARBOR MONTH IN RICHFIELD Mayor Goettel read the proclamation designating Mayas Arbor Month in Richfield. Item #3 COUNCIL DISCUSSION . HATS OFF TO HOMETOWN HITS Council Member Rosenberg announced the Richfield Beautiful Home & Garden Tour on June 23. She acknowledged the efforts of the co-chairs in preparing for this tour. Council Member Kilian announced a Crosstown Reconstruction Project public informational session on April 24 from 4 to 6 p.m. at Richfield Lutheran Church, 60th StreetlNicollet Avenue. Council Member Kilian invited former Mayor and current HRA Commissioner Marty Kirsch to discuss the Cedar Point award. Martin Kirsch, 6725 Penn Avenue, displayed the Cedar Point Commons "2006 Best in Real Estate" award for Best Retail Development recently announced and presented by the Minneapolis- S1. Paul Business Journal. Council Member Wroge stated that at the Worksession held prior to this meeting, the Public Safety Department reported a number of arrests have been made in graffiti incidents. Mayor Goettel reported on the recent veterans' forum at VFW. Council Meeting Minutes -3- April 24, 2007 Item #4 COUNCIL APPROVAL OF AGENDA M/Kilian, S/Sandahl to approve the aoenda. Motion carried 5-0. litem #5 I CONSENT CALENDAR A. Approved continuing public hearing and second reading to May 8, 2007 of amendment to Richfield Zoning Code Section 546 to allow variances processed in conjunction with another planning and zoning request that requires City Council approval S.R. No. 101 B. Approved resolution authorizing Public Safety Department to accept $1500 grant from Hennepin County for Joint Community Police Partnership program S.R. No. 102 RESOLUTION NO. 9920 RESOLUTION AUTHORIZING RICHFIELD PUBLIC SAFETY/POLICE TO ACCEPT A GRANT IN THE AMOUNT OF $1500 FROM THE HENNEPIN COUNTY JOINT COMMUNITY POLICE PARTNERSHIP PROGRAM This resolution appears as Resolution No. 9920. C. Approved resolution authorizing City to enter into three-year agreement with The Standard Insurance Company for long-term disability insurance benefits S.R. No. 103 RESOLUTION NO. 9921 RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE STANDARD INSURANCE COMPANY FOR LONG-TERM DISABILITY INSURANCE BENEFITS This resolution appears as Resolution No. 9921. D. Approved purchase of Maenke Brothers Outdoor, Inc. services for landscape maintenance of Lyndale/Hub/Nicollet and 77th Street districts and 35W and 66th Street bridge area in amount of $39,577 S.R. No. 104 E. Approved bid minutesltabulation and award of contract to North Star Tree Care for 2007 diseased tree removal on private property in amount of $106,980 S.R. No. 105 M/Rosenbero, S/Kilian to approve the Consent Calendar. Motion carried 5-0. Mayor Goettel requested an explanation of the sealed bid process for contracts. City Manager Devich explained the process pursuant to State Statute. Council Meeting Minutes -4- April 24, 2007 Public Works Director Eastling stated Maenke Brothers Outdoor, Inc. (Item 50) uses 77th Street as a showpiece for other projects. Item #6 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT CALENDAR None. Item #7 PUBLIC HEARING REGARDING ISSUANCE OF NEW 2007 ON-SALE WINE LIQUOR AND 3.2 PERCENT MALT LIQUOR LICENSES FOR NAVIYA'S THAI RESTAURANT, 6345 PENN AVENUE S.R. NO. 106 Council Member Rosenberg presented Staff Report No. 106. Kim LaBarge, Naviya's Thai Restaurant, stated his wife, Naviya, was recently named a successful woman in business by the Sun Current. M/Rosenberg, S/Sandahl to close the public hearina. Motion carried 5-0. M/Rosenberg, S/Kilian to approve the issuance of a new 2007 on-sale wine liauor license: and a new 3.2 percent malt Iiauor license for Naviva's' Thai Restaurant. 6345 Penn Avenue South, Richfield. Motion carried 5-0. Item #8 PUBLIC HEARING REGARDING ACCEPTANCE OF RICHFIELD'S WELLHEAD PROTECTION PLAN PART 2 S.R. NO. 107 Mayor Goettel presented Staff Report No. 107. plan. Mark Janovec, Bonestroo, Rosene, Anderlik & Associates, presented a summary of the Council Member Kilian asked about potential contamination if residential wells are not capped and sealed. Mr. Janovec said there are no concerns if the well is properly maintained. Mayor Goettel asked about the handling of areas outside Richfield. Mr. Janovec said there are benefits to working cooperatively with other areas. If there are problems with maintenance, either the Minnesota Department of Health or Pollution Control Agency will become involved. Council Member Wroge asked about terrorist issues related to Richfield's aquifers. Council Meeting Minutes -5- April 24, 2007 Mr. Janovec explained the aquifer and well depths in Richfield. Mayor Goettel asked about the number and monitoring of wells in the City. Utility Superintendent Young stated some records are held by the City, some by the State. M/Kilian, SlWroge to close the public hearinQ. Motion carried 5-0. M/Goettel, S/Sandahl to accept Richfield's Wellhead Protection Plan Part 2. Motion carried 5-0. Item #9 PUBLIC HEARING REGARDING PRELIMINARY RESOLUTION APPROVING FINANCING OF MULTI-FAMILY HOUSING DEVELOPMENT PROJECT UNDERTAKEN BY@HOMEAPARTMENTS DBA AS LYNWOOD PARTNERS, L.L.C.; 7437 LYNDALE AVENUE S.R. NO. 108 Council Member Sandahl presented Staff Report No. 108. Mike Cashill, @ Home Apartments, discussed the renovation and rehabilitation plans for the Gateway Apartments. He added no one would be displaced since the work would be done as turnover occurs. Council Member Sandahl asked about some of the one-bedroom units being made into two- three bedroom units. Mr. Cashill said there are no plans to change the number of bedrooms in each unit. Council Member Rosenberg asked about a screening process to avoid overcrowding in units. Mr. Cashill said they conduct thorough criminal background checks and are active in the Minnesota Multi-Housing Association. Local and State laws regarding occupancy are followed. Council Member Rosenberg asked about maintaining affordability. Mr. Cashill explained that 20% of the units are occupied by people with 50% or less of the median income. Council Member Wroge asked about the current occupancy rate. Mr. Cash ill stated it's at approximately 95% occupancy but has been as low as 85%. Mayor Goettel said she was pleased to see improvements are coming to the apartments. Council Member Sandahl said the need for improvements was discussed a long-time ago. MlWroge, S/Kilian to close the public hearinQ. Motion carried 5-0. Council Meeting Minutes -6- April 24, 2007 M/Sandahl, S/Kilian that the followina resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 9922 RESOLUTION RELATING TO A MULTIFAMILY HOUSING DEVELOPMENT TO BE ACQUIRED, OWNED, AND OPERATED BY L YNWOOD PARTNERS, L.L.C., A MINNESOTA LIMITED LIABILITY COMPANY, AND THE ISSUANCE OF REVENUE BONDS TO FINANCE AND REFINANCE THE COSTS THEREOF UNDER MINNESOTA STATUTES, CHAPTER 462C, AS AMENDED; GRANTING PRELIMINARY APPROVAL THERETO, ESTABLISHING COMPLIANCE WITH CERTAIN REIMBURSEMENT REGULATIONS UNDER THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, AND TAKING CERTAIN OTHER ACTIONS WITH RESPECT THERETO Motion carried 5-0. This resolution appears as Resolution No. 9922. Item #10 CONSIDERATION OF RESOLUTION COMMITTING THAT CITY WILL NOT SELL OR ENCUMBER THROUGH EASEMENT OR LICENSE OR OTHERWISE, ANY LAND THAT IT OWNS WITHIN THE AREA COVERED IN PRELIMINARY AGREEMENT BETWEEN RICHFIELD HRA AND UNITED BANKERS' BANK S.R. NO. 109 Council Member Wroge presented Staff Report No. 109. Community Development Director Palmborg discussed the site, including the parcels owned by the City. Gene Ekness, United Bankers' Bank (UBB), stated when the opportunity of this site became available, the City of Richfield was determined to be the best location for their corporate headquarters and employees. Mr. Ekness discussed the possible two-level, heated, underground parking. The water table is the key issue. The majority of land would be green space. Council Member Kilian said he was pleased thatUBB would seek neighborhood input. This use would be less intense and intrusive to the residents. MlWroge, S/Sandahl that the followina resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 9923 RESOLUTION RELATING TO THE DEVELOPMENT OF CITY-OWNED PROPERTY Council Member Wroge asked about other organizations not being able to come forward because they're block out for nine months with this agreement. Community Development Manager Smith said the City would work only with UBS for nine months. Motion carried 5-0. This resolution appears as Resolution No. 9923. Council Meeting Minutes -7- April 24, 2007 Item #11 CONSIDERATION OF RESOLUTION COMMITTING THAT CITY WILL NOT SELL OR ENCUMBER THROUGH EASEMENT OR LICENSE OR OTHERWISE, ANY LAND THAT IT OWNS WITHIN THE AREA COVERED IN PRELIMINARY AGREEMENT BETWEEN RICHFIELD HRA AND TOLD DEVELOPMENT COMPANY S.R. NO.110 Council Member Wroge presented Staff Report No. 110. Community Development Director Palmborg discussed the proposed feasibility study area. If the area is determined feasible after investigative and evaluative work, TOLD could make an offer of redevelopment. Gary Dreher, TOLD Development Company, stated there are some obstacles to overcome but they are excited for the opportunity to explore redevelopment options. Council Member Wroge asked about mixed uses. Mr. Dreher explained there could be many different uses depending upon the market, viability as an office corridor and economics. Council Member Kilian stated there is a need to work with the neighborhood regarding compatible uses. Mr. Dreher said TOLD views redevelopment as a collaborative effort, including interaction and communication. Tom Junilla, real estate consultant for the Dental Health Care Center, 1717 East 66th Street, addressed the City Council regarding the clinic's proposal to acquire land adjacent to the clinic from the City of Richfield because the new roundabout at 17th Avenue/66th Street will significantly impact the clinics parking capacity. He said the clinic pledges collaboration with TOLD. He affirmed growth at this location with renovation of the interior and exterior of the building. Mr. Junilla said the commitment before the City Council tonight does not apply to 1717 East 66th Street to address parking concerns raised by the owners. Mayor Goettel said she was excited businesses want to improve. Council Member Kilian stated this site is a gateway to the 30 acres in the proposed TOLD agreement. A single story building may not be appropriate. It is important to keep everyone in mind but not at a detriment to others. Council Member Wroge asked about the prior obligation to exclude the clinic from the 30 acres. City Attorney Thomson explained there were no prior contractual obligations to exclude 1717 East 66th Street prior to this resolution. Ryan has the right of first refusal. There is no time limit to provide assistance to address the clinic's parking concerns. Council Member Wroge said the clinic needs to wait nine months. City Attorney Thomson stated the exception in the commitment allows the City to enter an agreement to assist with parking at the clinic. Council Meeting Minutes -8- April 24, 2007 Council Member Wroge said there is still the right to sell, rent or least the land to the clinic. City Attorney Thomson stated City staff can also discuss with TOLD the impact this clinic would have on redevelopment options. MlWroge, S/Sandahl that the followina resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 9924 RESOLUTION RELATING TO THE DEVELOPMENT OF CITY-OWNED PROPERTY Council Member Sandahl stated there is a nine-month window and it's not known if anything will happen. Nothing is guaranteed, only an opportunity to explore options. Council Member Kilian added this is also a chance to find potential problems. Council Member Wroge advised homeowners to wait before moving forward. Motion carried 5-0. This resolution appears as Resolution No. 9924. Item #12 CONSIDERATION-OF-RIGHT OF ENTRY AGREEMENT FOR USE OF PORTIONS OF 6701-18TH AVENUE; 6709-18TH AVENUE, 6721-18TH AVENUE AND 6700 CEDAR AVENUE BY UNITED BANKERS' BANK S.R. NO. 111 Council Member Kilian presented Staff Report No. 111. M/Kilian, SlWroge to approve a Riaht-of-Entrv Aareement for use of portions of 6701 18th Avenue South, 6709 18th Avenue South, 6721 18th Avenue South and 6700 Cedar Avenue South bv United Bankers Bank. Motion carried 5-0. Item #13 CONSIDERATION OF RIGHT-OF-ENTRY AGREEMENT FOR USE OF PORTIONS OF LOTS SOUTHERLY OF 66TH STREET EAST BETWEEN 66TH AND 69TH STREETS BETWEEN 17TH AVENUE AND TRUNK HIGHWAY 77 BY TOLD DEVELOPMENT COMPANY S.R. NO. 112 Council Member Kilian presented Staff Report No. 112. M/Kilian, SlWroge to approve a Riaht-of-Entrv Aareement for use of portions of the lots southerlv of 66th Street East between 66th and 69th Streets and between 17th Avenue and Trunk Hiahwav 77 bv TOLD Development Company. Council Member Wroge asked about the Metropolitan Airports Commission (MAC) ownership of four parcels. Council Meeting Minutes -9- April 24, 2007 Community Development Manager Smith said MAC parcels are not included but are encumbered by Ryan's right of first refusaL Council Member Kilian stated residents in Phase II across from Super Target may wonder why development is advancing to the south. Community Development Manager Smith explained request for proposals for Phase II were sent to 50 developers and architects with a May 10 deadline. Hopefully qualified applications will be received resulting in a preliminary development agreement before the HRA in June. No timetable is set because of the market and acquisition costs. Motion carried 5-0. Item #14 CONSIDERATION PURCHASE AGREEMENT BETWEEN CITY AND CORNERSTONE ADVOCACY SERVICE, OWNER OF PROPERTY AT 6600 OAKLAND AVENUE, AS PART OF 66TH STREET AND PORTLAND AVENUE INTERSECTION PROJECT S.R. NO. 113 Council Member Sandahl presented Staff Report No. 113. M/Sandahl, S/Rosenberg to authorize the Mayor and City Manaaer to execute the proposed Purchase Aareement between the City of Richfield and Cornerstone Advocacy Service. a Minnesota nonprofit corporation. for the aCQuisition of the property located at 6600 Oakland Avenue. Council Member Wroge questioned why the appraised value of $235,000 was not offered. City Attorney Thomson stated she could not speak to specifics because she was not involved in the negotiations. When the appraised value was offered, the property owner rejected it as not being adequate in their opinion. If an agreement cannot be reached, the property goes to the condemnation process. This property was in condemnation for a partial taking but the project design changed. To amend the condemnation, costs would be incurred and there is a risk to be considered. The acquisition consultant considered all these factors to reach an agreement. Council Member Wroge said he has a problem with the purchase price because the property is unusable and now it's being bought out. City Manager Devich stated the $235,000 appraisal was used at the beginning as a partial take. Another appraisal could have increased the value. The 10% variance is common and acceptable. If there was a disagreement, costs incurred would be more than 10%. Council Member Wroge said another appraisal could also have been less. Council Member Rosenberg stated it has been the City's practice to work with the property owner and be honorable in all negotiations. Just because the owner is a non-profit does not mean they do not accept the best price. Council Member Wroge clarified that he meant the property could not have been sold to a family and it would be hard to sell it to another non-profit. Public Works Director Eastling stated the advisor, Ken Helvey, laid out the options and recommended acceptance. Council Meeting Minutes -10- April 24, 2007 Council Member Sandahl said she supported the purchase agreement as a meeting of the minds on fair market value. Council Member Kilian .said he supported the purchase agreement because the site is zoned commercial so it could be something different and 10% over the initial offer is acceptable. Public Works Director Eastling clarified the resolution with the Staff Report stating $235,000 was provided for reference to set just compensation to document previous City Council action. Mayor Goettel stated more could be spent in attorney fees than the 10% if an agreement was not reached. She said she would be concerned if it was more than 10% but it may be time to cut the losses to move forward and keep the project on track. Motion carried 5-0. Item #15 CONSIDERATION OF BID MINUTES/TABULATION AND AWARD OF CONTRACT TO NORTHERN WATER WORKS SUPPLY COMPANY FOR WATER METER REPLACEMENT AND INSTALLATION OF AUTOMATED METER READING SYSTEM IN AMOUNT OF $2,496,252.28 S.R. NO.114 Council Member Rosenberg presented Staff Report No. 114. M/Rosenberg, S/Sandahl to approve the bid minutes and tabulation and award of contract to Northern Water Works Supplv Company in the amount of $2.496.252.28. Motion carried 5-0. Item #16 CITY MANAGER'S REPORT City Manager Devich reported on the following: · City of Richfield received the Minnesota Chapter, 2007 Women in Transportation Study Employer of the Year award. . Audio upgrades in the Council Chambers. litem #17 I CLAIMS AND PAYROLL M/Rosenberg, S/Kilian that the followinQ claims and pavrolls be approved: U. S. BANK AlP Checks: 158438 - 158754 PAYROLL 38971 - 39295; 41250 TOTAL $ 1,062,096.67 $ 457,549.57 $ 1,519,646.24 Council Meeting Minutes -11- April 24, 2007 Motion carried 5-0. ADJOURNMENT The City Council meeting was adjourned by unanim Date Approved: s/f-/d} eb Ma~ t~-,1~wn~ Cheryl rumhol Recording Secretary CITY OF RICHFIELD, MINNESOTA Bid Opening April 11, 2007 10:00 a.m. Removal and Disposal of Diseased Trees on Private Property Bid No. 07-07 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 removal and disposal of diseased trees on private property, bid no. 07-07, as advertised in the .official newspaper on March 22, 2007. Present: Nancy Gibbs, City Clerk Doris Swanson, City Manager Representative Randy Hughes, Public Works Representative Ray Wroblewski, Public Works Representative The following bid was submitted and read aloud: Vendor Bid Security Bid Amount Wilson Cresant Trees $5,850.19 check $117,003.75 Cresco, IA Asplund Bid Bond Provided $320,245.00 Spring lake Park, MN Northstar $5,349.00 check $106,980.00 Pierz, MN The City Clerk announced that the bids would be tabulated and considered at the April 24,2007 City Council Meeting. "- ... CITY OF RICHFIELD, MINNESOTA Bid Opening April 11, 2007 2:00 p.m. Water Meter Replacement Bid No. 07-06 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 meter replacement, bid no. 07-06, as advertised in the official newspaper on March 15, 2007 and March 22, 2007. Present: Nancy Gibbs, City Clerk Cheryl Krumholz, City Manager Representative Robert Hintgen, Utility Supervisor The following bid was submitted and read aloud: Vendor Bid Bond Base Bid Hersey Meters No Bid Neptune Technology Grp, Inc. Provided $2,793,626.70 Northern Water Works Supply Provided $2,496,252.28 Minnesota Pipe & Equipment Provided $2,530,726.05 The City Clerk announced that the bids would be tabulated and considered at the April 24, 2007 City Council Meeting.