01-22-08 Regular
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Meeting
January 22, 2008
CALL TO ORDER
The meeting was called to order by Mayor Goettel at 7:06 p.m.
ROLL CALL
Members Present: Debbie Goettel, Mayor; Sue Sandahl; Susan Rosenberg; Fred Wroge; and
Bill Kilian.
Staff Present: Steven L. Devich, City Manager; Bruce Palmborg, Community
Development Director; John Stark, Assistant Community Development
Director; Mike Eastling, Public Works Director; Jim Topitzhofer, Recreation
Services Director; Brandon Klement, Recreation Facilities Manager; Dan
Scott, Public Safety Director; Brad Sveum, Fire Services Director; Bill
Fillmore, Municipal Liquor Operations Director; Corrine Heine, City
Attorney; and Cheryl Krumholz, Recording Secretary.
OPEN FORUM
None.
PRESENTATION OF COLORS AND PLEDGE OF ALLEGIANCE
Mayor Goettel led the audience in the Pledge of Allegiance.
APPROVAL OF MINUTES
Council Meeting Minutes -2- January 22, 2008
M/Kilian, S/Wroge to approve the minutes of (1) Special City Council Worksession of
January 8, 2008 and (2) Regular City Council Meeting of January 8, 2008.
Motion carried 5-0.
Item #1 SWEARING-IN OF RICHFIELD POLICE OFFICER RONALD DOX
Public Safety Director Scott performed the swearing-in of Police Officer Ronald Dox.
Item #2 PRESENTATION OF 2007 RICHFIELD POLICE OFFICER OF THE YEAR
AWARD TO WILLIAM STANGER (COUNCIL MEMO NO. 19)
Public Safety Director Scott presented the 2007 Richfield Police Officer of the Year Award
to William Stanger.
Item #3 RECOGNITION OF DONORS TO HONOR ALL VETERANS MEMORIAL
Travis Gorshe, Arts Commission, recognized the donations to the All Veterans Memorial
Sponsor-a-Veteran Fund.
?
$10,000 from the Mall of America
?
$10,000 from Richfield-Bloomington Credit Union
?
Scholarship from The Frenchman’s
Item #4 COUNCIL DISCUSSION
?
HATS OFF TO HOMETOWN HITS
Council Member Rosenberg discussed the “Celebrations of Racial Unity” event on January
21, 2008 at Hope Presbyterian Church.
Council Member Sandahl announced the January 26, 2008 Remodeling Fair at Richfield
High School.
Mayor Goettel added she would present the “State of the City” address in the high school
auditorium at noon.
City Manager Devich recognized Bruce Palmborg, retiring Community Development
Director.
Mayor Goettel stated the January 17, 2008 Minneapolis Star Tribune article regarding the
HUB was not what she thought would be published. She said the conversation with the reporter
did not lead to fair remarks with her quotes being out of context.
Council Meeting Minutes -3- January 22, 2008
Mayor Goettel requested City Manager Devich discuss how she was brought into the
conversation.
City Manager Devich explained the City contacted the Minneapolis Star Tribune and invited
the reporter to meet with staff and write about Richfield in the new section of the newspaper. City
Manager Devich, Pam Dmytrenko, Assistant to City Manager, and Scott Bradley, Communications
Coordinator, met with the reporter and toured the City, focusing on the Cedar Point development
and other future development plans.
City Manager Devich stated the reporter asked about the HUB and the recent resident
survey results regarding people feeling unsafe in that area. He said he told the reporter the
majority of residents are not fearful or feel unsafe. He asked the reporter to contact the Richfield
Public Safety Department.
Item #5 COUNCIL APPROVAL OF AGENDA
M/Wroge, S/Kilian to approve the agenda.
Motion carried 5-0.
Item #6 CONSENT CALENDAR
A. Consideration of approval of first reading of ordinance amending Section 210.01 of
Richfield City Code related to City Council salaries and scheduling second reading for
February 12, 2008 S.R. No. 19
B. Consideration of approval of public health and environmental health mutual aid agreement
with eleven political subdivisions of State of Minnesota S.R. No. 20
C. Consideration of approval of 2008 contract with City of Bloomington, using public health
emergency preparedness grant funds distributed by federal grant from Centers for Disease
Control, to provide public health emergency preparedness/bioterrorism services and
development of response system S.R. No. 21
D. Consideration of approval of continuing agreement with City of Bloomington for public
health nursing services for City of Richfield for 2008 S.R. No. 22
E. Consideration of approval of purchase of three Public Safety Police squad cars from
Monticello Ford in amount of $67,728 S.R. No. 23
M/Kilian, S/Wroge to approve the Consent Calendar.
Motion carried 5-0.
Item #7 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT
CALENDAR
None.
Council Meeting Minutes -4- January 22, 2008
Item #8 CONSIDERATION OF SECOND READING OF ORDINANCE AMENDING
SUBSECTIONS 800.13, 800.17, 800.19, 800.21, AND 800.23 OF CITY CODE
RELATED TO OFF-STREET PARKING S.R. NO. 24
Mayor Goettel presented Staff Report No. 24.
M/Goettel, S/Sandahl to approve the second reading of the ordinance amending
subsections 800.13, 800.17, 800.19, 800.21, and 800.23 of the City Code related to off-street
parking.
Motion carried 5-0.
Item #9 CONSIDERATION OF RESOLUTION APPROVING PROVISIONS OF 2008-09
LABOR AGREEMENT BETWEEN CITY OF RICHFIELD AND INTERNATIONAL
UNION OF OPERATING ENGINEERS LOCAL 49 S.R. NO. 25
Council Member Rosenberg presented Staff Report No. 25.
Council Member Wroge asked about the reopening of the contract in one year when a two-
year contract is being presented for consideration.
City Manager Devich explained the only provisions to be re-opened are wages and health
insurance premiums. Because of the economic uncertainties, he did not want to make projections of
costs. He added that public sector labor negotiations are different than in the private sector.
RESOLUTION NO. 10051
RESOLUTION APPROVING LABOR AGREEMENT BETWEEN THE
CITY OF RICHFIELD AND
INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 49
BARGAINING UNIT FOR THE YEARS 2008-2009
This resolution appears as Resolution No. 10051.
M/Rosenberg, S/Kilian to approve the resolution approving provisions of 2008-09 labor
agreement between the City of Richfield and International Union of Operating Engineers Local 49.
Motion carried 5-0.
Item #10 CONSIDERATION OF ADDENDUM TO EXISTING LEASE AGREEMENT
BETWEEN CITY OF RICHFIELD AND HAT TRICK HOCKEY, INC., 636 WEST
TH
66 STREET S.R. NO. 26
Council Member Wroge presented Staff Report No. 26.
Council Meeting Minutes -5- January 22, 2008
M/Wroge, S/Goettel to approve the addendum to the existing lease agreement between City
of Richfield and Hat Trick Hockey, Inc.
Council Member Wroge discussed his concerns regarding (1) Mr. Sachs not supplying the
City with financial statements for Hat Trick Hockey; (2) needing a second business plan for the site,
i.e. City use, destination-type business, etc.; and (3) the City being paid for the three year lease if the
business leaves in one or one and a half years. He said he wants to support the business but has
concerns regarding the business plan.
City Attorney Heine explained the lease has a provision if there is a default on rent payments
with an option to sue the tenant or terminate the lease and the tenant remains responsible. There are
remedies in the agreement if there is a breach. A legal remedy does not guarantee recovery if the
business has financial difficulties. The courts have the authority to discharge the debt.
Recreation Services Director Topitzhofer stated secondary uses of the site had not been
researched. Recreational use for office space or programming was possible but it was doubtful if
costs would be recovered. Hat Trick Hockey is an image builder for the arena.
Mayor Goettel asked why financials were not provided.
Recreation Services Director Topitzhofer responded that Mr. Sachs was uncomfortable with a
public display of the information.
Recreation Services Director Topitzhofer stated the new lease is with the new owner and
should not be a concern if Mr. Sachs provided the information or not.
Council Member Wroge questioned the accuracy of the lease rates indicated in the staff report
for the HUB and Woodlake Plaza. He said Hat Trick Hockey is getting a good deal on the lease rate.
Council Member Wroge added that the financials would not necessarily be public information
but should be provided to City staff.
City Attorney Heine explained that if the City receives the information it is presumed public
unless there is State Statute protection.
Council Member Kilian added that opening the books to the public would be difficult.
Recreation Services Director Topitzhofer stated the financials have been received in the past
but not this time.
Council Member Wroge suggested the financials be required at the end of this three year
lease agreement.
A question was asked about how the lease would be transferred to the new business owners.
City Attorney Heine stated the lease will remain with Hat Trick Hockey, Inc. but that the
corporate ownership of Hat Trick Hockey would be transferred.
Council Member Wroge asked about the status of the sale.
Steve Sachs, potential new owner of Hat Trick Hockey, explained the sale would move
forward only if the lease extension were approved. He added that the owner reported an operating
loss to the Internal Revenue Service for the past four years.
Council Meeting Minutes -6- January 22, 2008
Recreation Services Director Topitzhofer said the lease addendum is through November 30,
2011.
Council Member Sandahl said she is comfortable with moving forward with the lease because
this is a stream of income and another option may not be found.
Mr. Sachs discussed the proposed business plan for Hat Trick Hockey.
Council Member Sandahl suggested negotiations be started earlier next time to provide more
time for review.
City Attorney Heine suggested the City Council could conditionally approve the addendum
upon the transfer of the business to the new owner.
Council Member Wroge amended his original motion to include City Attorney Heine’s
suggestion, and to direct staff to have Hat Trick Hockey provide business financial statements six
months in advance of the next lease agreement extension request.
Council Member Kilian expressed support for approving the lease addendum because of
there being current vacancies for retail space already in the City.
Council Member Wroge amended his amended motion to include an alternative business plan
for the site be provided the next time lease agreement is to be considered for extension.
David Leonidas, Hat Trick Hockey accountant, requested the City Council consider the
viewing of tax returns instead of the financial statements to reduce costs to the business.
Mayor Goettel said no because that was not a profit/loss statement.
Council Member Wroge stated if the City is subsidizing the business, then the City needs to
know about the business.
Amended motion passed 5-0.
Item #11 CONSIDERATION OF BID MINUTES/TABULATION AND AWARD OF CONTRACT
TH
TO SHAFER CONTRACTING, INC. FOR PORTLAND AVENUE AND 66 STREET
IMPORVEMENT PROJECT IN AMOUNT OF $2,449,351.74 S.R. NO. 27
Council Member Kilian presented Staff Report No. 27.
M/Kilian, S/Sandahl to approve the bid minutes/tabulation and award of contract to Shafer
th
Contracting, Inc. for Portland Avenue and 66 Street Improvement Project in the amount of
$2,449,351.74.
Motion carried 5-0.
Public Works Director Eastling discussed the upcoming construction schedule for the
Richfield Lake Improvement Project.
Council Member Sandahl asked about the status of the Lyndale Garden Center owner’s
construction of the retaining walls.
Council Meeting Minutes
-7-
January 22, 2008
Public Works Director Eastling explained the owner declined the work but the project is
constructed so that work could be done later.
Item #12
CONSIDERATION OF APPOINTMENT(S) TO CITY ADVISORY COMMISSIONS
S.R. NO. 28
M/Sandahl, S/Goettel to consider this item at the end of this meetinq.
Motion carried 5-0.
I Item #13 I CITY MANAGER'S REPORT
None.
litem #15 I CLAIMS AND PAYROLL
M/Kilian, S/Rosenberg that the followinq claims and payrolls be approved:
u.S. BANK 01-22-08
AlP Checks: 165272 - 165737
PAYROLL 45749 - 46085,41325 - 41326
$ 3,118,973.12
$ 486,741.71
TOTAL
$ 3,605,714.83
Motion carried 5-0.
M/Sandahl, S/Goettel to continue the Reqular City Council Meetinq prior to the January 23,
2008 Special City Council Worksession at 5:30 p.m. in the Richfield School District Board Room to
consider appointments to the advisory commissions.
Motion carried 5-0.
The City Council meeting was continued by unanim
q~-~
Cheryl rumh Iz
Recording Secretary.
Date Approved:Jeoruarv 12. 2008
CITY OF RICHFIELD, MINNESOTA
Bid Opening
December 17, 2007
3:00 p.m.
66th Street & Portland Avenue Final Design
Bid No. 07-47
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 the 66th Street & Portland Avenue Final
Design, as advertised in the official newspaper on November 15,22, & 29,2007, and
the Construction Bulletin on November 19 & 26,2007 and December 3,2007.
Present:
Nancy Gibbs, City Clerk
Cheryl Krumholz, City Manager Representative
Kristin Asher, Assistant City Engineer
The following bids were submitted and read aloud:
Contractor R~c Add CM 32-34 Non- MNIDOT 21816 Grand Total
#1,#2,#3 Collusion (Bid Bond)
Arnt Construction ~ ~ ~ ~
Company $2,797,452.76
C. S. McCrossan ~ ~ ~ ~ $3,290,041.28
Construction, Inc.
Eureka Construction, Inc. ~ ~ ~ ~ $2,533,632.30
Hardrives, Inc. - Rogers ~ ~ ~ ~ $2,789,102.72
Landwehr Construction, ~ ~ ~ ~ $2,725,422.49
Inc.
Max Steninger, Inc. ~ ~ ~ ~ $2,484,034.72
McNamara Contracting, ~ ~ ~ ~ $2,767,969.11
Inc.
Contractor Rec Add CM 32-34 Non- MNIDOT 21816 Grand Total
#1,#2,#3 Collusion (Bid Bond)
Midwest Asphalt ~ ~ ~ ~ $3,041,591.58
Corporation
Northwest Asphalt, Inc. ~ ~ ~ ~ $2,823,305.02
Park Construction ~ ~ ~ ~ $2,633,090.21
Company - Hampton
Pember Companies, Inc. ltI ltI ltI ltI $2,811,202.04
Progressive Contractors, ~ ~ ~ ltI $2,801,515.62
Inc. (PCI)
S. M. Hentges & Sons, ~ ~ ~ ~ $2,887,410.00
Inc.
Shafer Contracting, Inc. ~ ~ ~ ~ $2,449,351.74
Thomas & Sons ~ ~ ~ ltI $2,956,528.70
Construction, Inc.
Valley Paving - ~ ~ ~ ~ $2,623,002.83
Shakopee
Veit & Company, Inc. ~ ~ ~ ~ $2,578,419.57
The City Clerk announced that the bids would be tabulated and considered at the January
22, 2008 City Council Meeting.
City Clerk