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09-11-07 Regular ~ CITY COUNCIL MEETING MINUTES Richfield, Minnesota Regular Meeting September 11, 2007 I CALL TO ORDER The meeting was called to order by Mayor Goettel at 7:02 p.m. I ROLL CALL Members Present: Debbie Goettel, Mayor; Sue Sandahl; Fred Wroge; Bill Kilian; and Susan Rosenberg. Staff Present: Steve Devich, City Manager; Bruce Palmborg, Community Development Director; Dan Scott, Public Safety Director; Jim Topitzhofer, Recreation Services Director; Brad Sveum, Fire Services Director; Bill Fillmore, Municipal Liquor Operations Director; Kristin Asher, Assistant City Engineer; Chris Regis, Finance Manager; Cheryl Krumholz, Recording Secretary; and Corrine Thomson, -City Attorney. 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/Wroge to approve the minutes of (1) Special City Council Worksession of Auqust 14. 2007; (2) Reqular City Council Meetinq of Auqust 14. 2007; (3) Special City Council Worksession of AUQust 14. 2007; and (4) Special City Council MeetinQ of AUQust 16, 2007. Motion carried 5-0. Council Meeting Minutes -2- September 11, 2007 Item #1 PRESENTATION OF CERTIFICATES OF RECOGNITION TO CONSTRUCTION WORKERS FROM AMES CONSTRUCTION WHO ASSISTED WITH RECENT TRUCK ACCIDENT IN CROSSTOWN COMMONS AREA (COUNCIL MEMO NO. 166) Mayor Goettel presented Certificates of Recognition to construction workers from Ames Construction who assisted with a recent truck accident in the Crosstown Commons area. Item #2 ANNUAL MEETING WITH FRIENDSHIP CITY COMMISSION Dave Delzer, Friendship City Commission Chair, reported on the commission's accomplishments and goals. Item #3 COUNCIL DISCUSSION . HATS OFF TO HOMETOWN HITS Council Member Sandahl acknowledged the efforts of City Bella and City staff for the sculptures at 66th StreeULyndale Avenue. Council Member Wroge announced the "Chat with CHAT II" open house for the public to receive an update on the progress of the proposed new City Hall/Fire/Police facility. Council Member Rosenberg acknowledge~ the success of the recent FOWL Ball Golf Klassic. Mayor Goettel discussed her recent meeting with Hennepin County Commissioner Randy Johnson and the Director of Public Works regarding the 66th Street/Portland Avenue intersection design issues. She stated Mr. Johnson and the Director could probably have an open mind regarding continued funding of the intersection if it changed from a roundabout design and that they would be interested in having information brought forward to their staff. Item #4 COUNCIL APPROVAL OF AGENDA Mayor Goettel removed Item 5F for separate consideration as Item 6 and tabled Item 9. Council Member Rosenberg removed Item 5B for separate consideration as Item 6. Council Member Wroge removed Item 5A for separate consideration as Item 6. M/Wroge, S/Rosenberg to approve the aQenda as amended. Motion carried 5-0. Council Meeting Minutes -3- September 11, 2007 litem #5 I CONSENT CALENDAR A. Removed from the Consent Calendar and placed on the regular agenda for consideration as Item 6. B. Removed from the Consent Calendar and placed on the regular agenda for consideration as Item 6. C. Approved first reading of ordinance amendment in Section 1202.05 Subdivision 3(b) increasing number of wine licenses within the City from seven to twelve and scheduling second reading for October 9,2007 S.R. No. 228 D. Approved resolution authorizing purchase of real property at 6744 Blaisdell Avenue, conducting first reading of transitory ordinance authorizing sale of property to HRA for affordable home development and scheduling public hearing and second reading to September 25, 2007 S.R. No. 229 RESOLUTION NO. 9982 RESOLUTION AUTHORIZING THE PURCHASE OF REAL PROPERTY LOCATED AT 6744 BLAISDELL AVENUE This resolution appears as Resolution No. 9982. E. Approved resolution declaring costs to be assessed and ordering preparation of assessment roll for weed elimination from private property and removal or elimination of public health or safety hazards from private property and scheduling public hearing for October 9,2007 S.R. No. 230 RESOLUTION NO. 9983 RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR WEED ELIMINATION FROM PRIVATE PROPERTY AND REMOVAL OR ELIMINATION OF PUBLIC HEALTH OR SAFETY HAZARDS FROM PRIVATE PROPERTY This resolution appears as Resolution No. 9983. F. Removed from the Consent Calendar and placed on the regular agenda for consideration as Item 6. G. Approved amendment to professional services agreement with Hoisington Koegler Group, Inc. for preparation of Housing Chapter in 2008 Comprehensive Plan update S.R. No. 232 H. Approved proposed sanitary sewer agreement between Metropolitan Airports Commission and City of Richfield to provide sanitary sewer to serve City's new maintenance facility S.R. No. 233 I. Approved issuing new taxi license for Twin Cities Airport Taxi, Inc., 9217-17th Avenue, Bloomington, MN S.R. No. 234 M/Sandahl, S/Wroge to approve the Consent Calendar as amended. Council Meeting Minutes -4- September 11, 2007 Motion carried 5-0. Item #6 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT CALENDAR 5A. Consideration of approval of continuing public hearing to October 9, 2007 regarding "major amendment" to City Bella planned unit development for construction of screening enclosures around air condensing units and ability to restrict public parking in underground garage S.R. No. 226 Council Member Wroge stated he did not want to stop the process but wanted to discuss his concern that the air conditioning units were installed and no permits pulled when the owner should know what's needed. He requested information that would indicate there was no way to put the units in the garage because of inadequate ventilation. MlWroge, S/Kilian to continue the public hearino reoardino a "maior amendment" to the City Bella Planned Unit Development to October 9,2007. Motion carried 5-0. 5B. Consideration of approval of first reading of ordinance amendments to Richfield City Code incorporating statutes of reference, updating references to current building and fire code regulations and amending subsections 100.07,400.03,400.04,400.11 and 400.21 and scheduling second reading for September 25, 2007 S.R. No. 227 Council Member Rosenberg questioned if current construction projects would be grandfathered in or if they would need to meet the same completion deadline as new projects. Public Safety Director Scott explained that the deadline includes existing construction projects. Council Member Rosenberg clarified the deadline is one year from when this ordinance becomes effective, not from the date the existing project began. Council Member Wroge questioned what happened if the project did not get finished. Public Safety Director Scott stated it would be considered working without a permit, the permit would not be renewed and then proceed to the City Attorney. M/Rosenberg, S/Sandahl to approve first readino of the ordinance relatino to incorporation of statutes bv reference: updatino references to current buildino and fire code reoulations: amendino subsections 100.07.400.03.400.04400.11 and 400.21 of the Richfield City Code,and schedule a second readino for September 25,2007. Motion carried 5-0. 5F. Consideration of approval of recommended Penn Crossings Task Force membership S.R. No. 231 Council Member Wroge expressed concern regarding the make-up of the committee. He suggested there be six, not three, homeowners/apartment residents because the homeowners need to have significant input. He also suggested more than three local businesses. Also, the City Council Meeting Minutes -5- September 11, 2007 Council should approve the committee list. And there should be five years of residency so there is a vested interest in the community. Mayor Goettel agreed there are many residents in the area. She also agreed there should be more than three businesses. Businesses interested in relocating to the area should be included. Council Member Rosenberg questioned the need for three members from the 1999 committee and that they could fit in another category. She agreed there should be more homeowners with a vested interest. Council Member Rosenberg questioned why Hoisington Koegler was conducting the study. She said another group could generate fresh ideas. Housing and Redevelopment Manager/Assistant Community Development Director Stark explained the contractually bound agreement with Hoisington. He said interests are trying to be balanced so the process can move forward. No one is trying to be excluded. Council Member Sandahl stated she was not comfortable with a five-year length of r~sidency because people who apply will have an interest resulting in a wide range of opinions. Council Member Wroge said the Penn Avenue development affects all Richfield homeowners. Mayor Goettel asked the City Council about a compromise of a one-year residency. Council Member Kilian stated this is a very difficult area to get something done so he cautioned setting up expectations that may not be met. MlWroge, S/Rosenberg to approve the Proposed Penn CrossinQs NeiQhborhood Advisory Committee as follows: Proposed Penn Crossinas Neiahborhood Advisorv Committee (14 - 16 members) 3 to 5 Local Businesses . Chosen from businesses alonQ Penn Avenue 1 Chamber of Commerce Representative . Chosen by the Chamber of Commerce 1 Attainable HousinQ Committee Representative . . Chosen by the Attainable HousinQ Committee 1 Bicycle Task Force Representative . Chosen by the Bicycle Task Force 1 Transportation Committee Member . Chosen by the Transportation Committee 1 PlanninQ Commission Member . Chosen by the PlanninQ Commission 5 Homeowners and 1 Residential Tenant from the General Area with at least one year of residency in the community: and the City Council would provide final approval of those individuals identified to fill the various roles within the NeiQhborhood Advisory Committee. Motion carried 5-0. Council Meeting Minutes -6- September 11, 2007 Item #7 PUBLIC HEARING REGARDING ISSUANCE OF NEW ON-SALE WINE AND 3.2 PERCENT MALT LIQUOR LICENSES FOR PATRICK'S BAKERY & CAFE, 2928 WEST 66TH STREET S.R. NO. 235 Council Member Kilian presented Staff Report No. 235. Patrick and Rafieh Bernet, Patrick's Bakery & Cafe, said this is the cafe's five-year anniversary. The cafe will have a new look and menu so they'd like to include wine and beer as requested by customers. Council MemberWroge asked if the owners received information regarding the City's compliance checks for underage liquor sales. Public Safety Director Scott stated the information was provided. MIKilian, SlWroge to close the public hearinQ. Motion carried 5-0. M/Kilian, S/Rosenberg approve the issuance of a new on-sale wine and approve the issuance of a new 3.2 percent malt liquor license for Patrick's Bakery & Cafe, 2928 West 66th Street Richfield. Motion carried 5-0. Item #8 CONSIDERATION OF FIRST READING OF PROPOSED ORDINANCE AMENDMENT TO RICHFIELD CITY CODE REGULATING OPEN BURNING, REQUIRING PERMITS, ADDING SECTION 921 AND SCHEDULING SECOND READING FOR SEPTEMBER 25, 2007 S.R. NO. 236 Council Member Sandahl presented Staff Report No. 236. Karl Ermisch, 6304 Wentworth Avenue, expressed his concerns regarding expanding the burning times from 6 -11 p.m. to 12 noon to 12 midnight and problems with the burning of debris. He sugge~ted information on regulations be inserted in the City's utility bill. Fire Services Director Sveum stated open burning is prohibited. Council Member Wroge asked how the change in the timeframe occurred. Fire Services Director Sveum explained that at a City Council Worksession, the City Council expressed a desire to permit burning from noon to midnight. Mayor Goettel said she and Council Member Sandahl suggested the change with the intent of providing time for boy and girl scout groups. Council Member Wroge said most people have recreational fires after dark but if there are problems, the hours could be revisited. Council Meeting Minutes -7- . September 11, 2007 Council Member Kilian stated the ordinance seems prohibitive. Council Member Wroge asked for a clarification of what constitutes a nuisance. Fire Services Director Sveum explained that the administrative policy in the past defined a nuisance as visible smoke leaving the property with the fire going to the neighbor's property or there are flying embers. If the fire is legal, it is not a nuisance. City Attorney Thomson stated it is a judgement call. A nuisance needs to unreasonably interfere with someone else's use and enjoyment of their property. Council Member Rosenberg discussed that nuisances are more than smoke and flying embers, but the odors that permeate neighborhoods. She said she'd rather not have any outside burning. Fire Services Director Sveum stated fireplace/wood-burning stoves are regulated by the Pollution Control Agency guidelines not the Fire Code. Council Member Sandahl said the ordinance provides one more tool to stop illegal burns and the hours can be reconsidered if there are problems. M/Sandahl, S/Wroge to approve first readinQ of the proposed ordinance reQulatinQ open burninQ; requirinQ permits; addinQ Section 921 of the Richfield City Code, and schedulinQ a second readinQ for September 25,2007. Motion carried 4-1. (Rosenberg opposed.) Item #9 CONSIDERATION OF SECOND READING OF ORDINANCE AMENDMENTS TO CITY ADMINISTRATIVE CODE CHAPTER III SUBSECTION 310.33, SUBDIVISION 1 DESCRIBING VACATION LEAVE ELIGIBILITY; SUBSECTION 310.43, SUBDIVISION 1 DESCRIBING RESIGNATION; AND SUBSECTION 310.51, SUBDIVISION 2 DESCRIBING CANDIDACY LEAVE OF ABSENCE S.R. NO. 237 Mayor Goettel stated this item was tabled. Item #10 CONSIDERATION OF LAND EXCHANGE AGREEMENT BETWEEN CITY AND ROGER A. WAHLDICK, AS TRUSTEE OF ROGER A. WAHLDICK TRUST (VICTORIA MANOR APARTMENTS), FOR ACQUISITION OF LAND NEEDED TO COMPLETE 66TH STREET AND PORTLAND AVENUE INTERSECTION PROJECT S.R. NO. 238 Council Member Rosenberg presented Staff Report No. 238. Tom Scott, special City counsel, explained the land exchange, relocated access and site improvements. Mayor Goettel asked about the number of parking spaces. Council Meeting Minutes -8- September 11, 2007 Assistant City Engineer Asher stated the parking increased from 36 to 39. M/Goettel, S/Sandahl to authorize the Mayor and City Manaqer to execute the proposed Land Exchanqe Aqreement between the City of Richfield and Roqer A. Wahldick, as Trustee of the Roqer A. Wahldick Trust for acquisition of land needed to complete the intersection proiect. Motion carried 5-0. Item #11 CONSIDERATION OF APPROVAL OF 2007 REVISED/2008 PROPOSED BUDGET RESOLUTIONS ADOPTING 2008 PRELIMINARY PROPERTY TAX LEVY, SETTING TRUTH IN TAXATION HEARING DATES, AUTHORIZING BUDGET REVISIONS, AUTHORIZING REVISION OF 2007 BUDGET OF VARIOUS DEPARTMENTS, AND AUTHORIZING USE OF PUBLIC EMPLOYEES RETIREMENT ASSOCIATION POLICE AND FIRE FUND REFUND INTEREST EARNINGS FOR POLICE AND FIRE EXPENDITURES S.R. NO. 239 Council Member Rosenberg presented Staff Report No. 239. Finance Manager Regis discussed the proposed 8.40% preliminary tax levy, which includes a 3.08% increase in the general fund base levy and 5.32% increase debt service levy for the bond sales on the Richfield Parkway/66th Street roundabout intersection project and the new maintenance facility project. Finance Manager Regis stated the City's tax capacity rate will reflect a 5.87% increase in 2008. Finance Manager Regis said the Truth-in- Taxation hearing dates are proposed for December 3 at 7:00 p.m. with a continuation, if necessary to December 10 at 7:00 p.m. The preliminary tax levy must be certified to Hennepin County by September 15. The maximum levy should be approved tonight because it can only be reduced thereafter. The levy is certified at the December 11 City Council meeting. Mayor Goettel discussed a recent Regional Council of Mayors meeting where Richfield appeared to have a higher levy. Local Government Aid (LGA) difficulties were also discussed at this meeting. She said funds should be set aside because of the uncertainty of LGA allocations. Mayor Goettel stated she also has concerns with the proposed 8.4% levy. City Manager Devich explained that if the debt service levy was not included, the levy would be 3.08%, which would I:>e lower than many cities. Richfield has not a debt service levy for several years because no capital improvements have been made. Council Member Wroge stated he had voiced concerns last year about a higher levy occurring this year and that there needed to be accountability. Council Member Wroge said he would not support a levy higher than 5% and suggested using half the LGA reserves set aside and the other half budget cuts. Council Member Wroge discussed his concerns regarding the inappropriateness of the HRA voting to increase the HRA levy to the amount allowable by law even though staff did not recommend that amount. Council Member Kilian stated the proposed property tax levy increase is modest if only the General Fund is considered. With the new bonds, there is going to be an increase for one year. If Council Meeting Minutes -9- September 11, 2007 it's ignored this year, an increase will be there some other year. He said he is against using the LGA "rainy day" fund for capital improvement projects. Council Member Sandahl stated she believed a 3.08% General Fund increase was reasonable. Prior City Council's have postponed a new City Hall and Maintenance Facility and now it's time to pay for them. There will be a levy increase for one year and then it will be built into the levy. If the levy is not passed today, the levy cannot be increased later. Council Member Rosenberg spoke in support of the HRA levy because the Attainable Housing Committee, of which she is a member, is constantly asking for funding to help the poorest of the poor. She said the HRA is not a place for budget cuts. Community Development/HRA staff work hard for those in the community with the most need. Council Member Rosenberg said she supported reducing the LGA "rainy day" fund. Council Member Sandahl explained the HRA increase was a $.20 per month increase. The HRA has no excess funds and needs to provide grants and loan programs to the needy. Council Member Wroge stated he was not talking about cutting the HRA budget but rather how the HRA increased that levy to the maximum without knowing the impact of the tax increase. Council Member Wroge stated a budget review, in his opinion, is not letting Department Directors telling the City Council what their departments need. Council Member Rosenberg asked Council Member Wroge if he voted for the budget last year. Council Member Wroge said yes. Council Member Kilian stated he believed there was ample time to review the budget. Council Member Wroge said the City Council needs to give staff direction to come before them with a 5% tax levy increase in December. Council Member Sandahl stated a 5% increase is not a magic number any more than 4% or 6%. Bond sales need additional funding as well as the "rainy day" LGA fund is needed. She said she supported the preliminary tax levy. Council Member Kilian said the City Council is asking for more things to be done, i.e. added property maintenance inspection program, without raising funding. Mayor Goettel stated she agreed with Council Member Wroge regarding a smoother transition to increasing the levy. The City Council should be provided with tax levy scenarios related to the LGA set aside and proposed revenues. She said the public would not be against spending on City improvements, but there should be better planning. Council Member Sandahl said no LGA is guaranteed. City Manager Devich discussed the uncertainty of LGA, which causes the most difficult budgeting. The levy is tried to be maintained as level as possible. More LGA than expected was allocated this year so the reserve LGA rainy day fund can be preserved. M/Rosenberg, S/Sandahl that the followinQ resolutions be adopted and that they be made part of these minutes: Council Meeting Minutes -10- September 11, 2007 RESOLUTION NO. 9984 RESOLUTION ADOPTING A PROPOSED BUDGET AND TAX LEVY FOR THE YEAR 2008 RESOLUTION NO. 9985 RESOLUTION AUTHORIZING BUDGET REVISIONS RESOLUTION NO. 9986 RESOLUTION AUTHORIZING REVISION OF 2007 BUDGET OF VARIOUS DEPARTMENTS RESOLUTION NO. 9987 RESOLUTION AUTHORIZING USE OF PUBLIC EMPLOYEES RETIREMENT ASSOCIATION POLICE AND FIRE FUND REFUND INTEREST EARNINGS FOR CERTAIN POLICE AND FIRE EXPENDITURES Motion carried 5-0. These resolutions appear as Resolution No.'s 9984,9985,9986 and 9987. CITY MANAGER'S REPORT City Manager Devich reminded the City Council that there is a legislative hearing in Eagan on September 19 regarding Richfield's concern of MAC representation that conflicts with a Special City Council meeting that same evening regarding the 66th Street/Portland Avenue intersection. The City Council agreed that they should all attend the Special City Council meeting and requested staff represent the City at the legislative hearing and read a statement. The City Council requested the statement be provided to them for their review prior to September 19. litem #12 I CLAIMS AND PAYROLL MlWroge, S/Sandahl that the followinQ claims and pavrolls be approved: U. S. BANK 8-28-07 TOTAL $ 1,846,050.46 $ 501,644.62 $ 2,347,695.08 AlP Checks: 161636 - 161989 PAYROLL 42317 - 42705 U. S. BANK 9-11-07 AlP Checks: 161990 - 162364 PAYROLL 42706 - 43067; 41293 - 41297 TOTAL $ 1,667,915.99 $ 489,809.19 $ 2,157,725.18 Motion carried 5-0. Council Meeting Minutes -11- September 11, 2007 City Attorney Thomson advised the City Council that a Closed Executive Session is needed because absolute confidentiality is necessary regarding pending litigation with MAC. Mayor Goettel adjourned the open meeting at 8:50 p.m. Item #13 SPECIAL CITY COUNCIL CLOSED EXECUTIVE SESSION IN EXECUTIVE CONFERENCE ROOM REGARDING STATUS REPORT ON PENDING LITIGATION WITH METROPOLITAN AIRPORTS COMMISSION The Closed Executive Session was called to order by Mayor Goettel in the Executive Conference Room at 8:54 p.m. Members Present: Debbie Goettel, Mayor; Sue Sandahl; Fred Wroge; Bill Kilian; and Susan Rosenberg. Staff Present: Steve Devich, City Manager; Pam Dmytrenko, Assistant to City Manager; Cheryl Krumholz, Recording Secretary; Corrine Thomson, City Attorney; and John "Mac" LeFevre, City Attornt3Y. The Closed Executive Session was convened pursuant to M.S. 13D.05. The Closed Executive Session adjourned at 9:19 p.m. Item #14 RECONVENE REGULAR CITY COUNCIL MEETING IN COUNCIL CHAMBERS The City Council reconvened the public meeting in the Council Chambers at 9:21 p.m. ADJOURNMENT OF REGULAR CITY COUNCIL MEETING The City Council meeting was adjourned by unani f!e~~ Recording Secretary Date Approved: September 25. 2007