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04-22-08 Regular CITY COUNCIL MEETING MINUTES Richfield, Minnesota Regular Meeting April 22, 2008 CALL TO ORDER The meeting was called to order by Mayor Goettel at 7:04 p.m. ROLL CALL Members Present: Debbie Goettel, Mayor; Susan Rosenberg; Fred Wroge; Bill Kilian; and Sue Sandahl. Staff Present: Steven L. Devich, City Manager; Mike Eastling, Public Works Director; John Stark, Interim Community Development Director; Barry Fritz, Acting Public Safety Director; Jim Topitzhofer, Recreation Services Director; Karen Barton, Community Development Manager; Corrine Heine, City Attorney; and Cheryl Krumholz, Recording Secretary. OPEN FORUM Tom Rublein, 2016 West 64th Street, Penn Crossings Neighborhood Advisory Committee member, discussed a committee, not staff, suggestion to have the City Council consider a one year moratorium on building expansion or new construction/development or other land use changes while studying and planning improvements to the intersection on 66th Street and Penn Avenue. Sharon Anderson, 6544 5th Avenue, addressed the City Council regarding the lack of notification by the City regarding her property’s impact from the 66th Street and Portland Avenue roundabout construction. She requested the City Council consider establishing an ordinance requiring a property owner’s signature to acknowledge the notification when their property is to be impacted by a project. Lynda Simon, 7321 Morgan Avenue, Robert Hall, 7309 Oliver Avenue, and Beth Novaczyk, 7334 Oliver Avenue, addressed the City Council regarding their concerns of the noise from the pool air-handler unit at the Richfield Middle School, including a request for additional noise level sampling and the lack of enforcement of the noise ordinance. Council Meeting Minutes -2- April 22, 2008 Michael Schwartz and Rus George, Richfield School District representatives, discussed the school’s efforts in reducing the noise from the pool air-handler unit in its current rooftop location and relocation costs if it were moved to a cement pad. Mr. Schwartz stated the air-handler unit does meet code requirements. PRESENTATION OF COLORS AND PLEDGE OF ALLEGIANCE Mayor Goettel led the audience in the Pledge of Allegiance. APPROVAL OF MINUTES M/Kilian, S/Sandahl to approve the minutes of (1) Special City Council Meeting of March 24, 2008; (2) Special City Council Worksession of April 8, 2008; and (3) Regular City Council Meeting of April 8, 2008. Motion carried 5-0. Item #1 PRESENTATION BY RICHFIELD YOUTH ACTION CREW (COUNCIL MEMO NO. 64) Denise Reese, Bloomington Public Health, and members of the Richfield Youth Action Crew, provided information on the partnership involving Richfield youth and adult leadership from Bloomington Public Health, Hennepin County Storefront Group, Cornerstone, Richfield High School and Middle School, and the Center for Training and Careers. Item #2 PRESENTATION OF PROCLAMATION DESIGNATING MAY 21, 2008 AS OPTIMIST DAY IN RICHFIELD Council Member Sandahl presented to members of the Optimists Club, the proclamation designating May 21, 2008 as Optimist Day in Richfield. Item #3 PRESENTATION OF PROCLAMATION DESIGNATING EARTH DAY/ARBOR DAY IN RICHFIELD Mayor Goettel presented to Recreation Services Director Topitzhofer, the proclamation designating Earth Day/Arbor Day in Richfield. Council Meeting Minutes -3- April 22, 2008 Item #4 COUNCIL DISCUSSION ? HATS OFF TO HOMETOWN HITS Council Member Kilian stated the City is addressing property maintenance issues but it does take time due to increased rental and foreclosed homes. Council Member Sandahl discussed the Senior Citizen Property Tax Deferral Program offered by the Minnesota Department of Revenue. Mayor Goettel distributed pictures of a rental property maintenance repair that she believes the City finds unacceptable. City Manager Devich stated staff has been working with the City prosecutor for several months on this property. Acting Public Safety Director Fritz stated the property is in compliance except for an issue with the pool. Council Member Wroge discussed various issues with the property including the pool; possible questionable activity because security cameras are around the home; not being registered as rental property; and the fence height as a code violation. City Manager Devich responded that all issues and their enforcement difficulties are being reviewed. There is a security fence around the property and if the gate is locked, City staff has no authority to enter without permission. Mayor Goettel stated there needs to be a way to make the City’s property maintenance standards clear. Council Member Wroge said a common sense approach would be to ask the owner if they’re living there and then have them prove it. He also suggested significantly increasing rental licensing fees. Council Member Kilian added that if the issues cannot be resolved, the City Council needs to address enforcement and establish a faster process. Council Member Rosenberg stated that she agreed with whatever it took to address rental property maintenance issues. Council Member Rosenberg announced the recently established City staff “Green Team”. Council Member Rosenberg announced the Richfield Beautiful Home and Garden Tour is June 21, 2008. Council Member Rosenberg asked about continuing the discussion that began at the Open Forum regarding the Richfield Middle School air-handler unit noise issues. City Manager Devich explained that this is a complicated issue because the noise decibel level in the City’s ordinance does not comply with Minnesota Pollution Control Agency standards. Mayor Goettel stated that City Manager Devich would discuss this issue during the City Manager Report section later on the agenda. Council Meeting Minutes -4- April 22, 2008 Item #5 COUNCIL APPROVAL OF AGENDA Mayor Goettel requested that Item #6B be removed from the Consent Calendar and be considered separately as Item #7. M/Kilian, S/Wroge to approve the agenda as amended. Motion carried 5-0. Item #6 CONSENT CALENDAR A. Consideration of approval of resolution authorizing purchase of property at 7316 Clinton Avenue; first reading of transitory ordinance authorizing sale of property to HRA for affordable home development; and scheduling public hearing and second reading for May 27, 2008 S.R. No. 101 RESOLUTION NO. 10087 RESOLUTION AUTHORIZING THE PURCHASE OF REAL PROPERTY LOCATED AT 7316 CLINTON AVENUE This resolution appears as Resolution No. 10087. B. Removed from the Consent Calendar and placed on the regular agenda for consideration as Item #7. C. Consideration of approval of resolution authorizing Public Safety Department acceptance of grant funds from State of Minnesota, Office of Justice Programs, for Richfield’s participation in joint powers agreement and participation in Metro Gang Strike Force initiative S.R. No. 103 RESOLUTION NO. 10088 RESOLUTION AUTHORIZING PUBLIC SAFETY DEPARTMENT ACCEPTANCE OF GRANT FUNDS FROM THE STATE OF MINNESOTA, OFFICE OF JUSTICE PROGRAMS, FOR RICHFIELD’S PARTICIPATION IN A JOINT POWERS AGREEMENT AND PARTICIPATION IN THE METRO GANG STRIKE FORCE INITIATIVE This resolution appears as Resolution No. 10088. D. Consideration of approval of authorizing Safety Grant agreement between City of Richfield and Minnesota Department of Labor & Industry for $5,000 used in purchasing of confined space retrieval equipment – 4 piece Davit hoist system S.R. No. 104 E. Consideration of approval of resolution authorizing City of Richfield to submit non- motorized transportation pilot program grant applications to Transit for Livable Communities S.R. No. 105 Council Meeting Minutes -5- April 22, 2008 RESOLUTION NO. 10089 RESOLUTION AUTHORIZING THE CITY OF RICHFIELD TO SUBMIT NON-MOTORIZED TRANSPORTATION PILOT PROGRAM GRANT APPLICATIONS TO TRANSIT FOR LIVABLE COMMUNITIES This resolution appears as Resolution No. 10089. F. Consideration of approval of contract to Alternative Business Furniture for system furniture for new maintenance facility in amount of $30,826.00 and change order to Master Mechanical, Inc. to install HVAC in two elevator rooms in amount of $32,781.58 S.R. No. 106 G. Consideration of approval of contract to Clearwater Recreation, LLC. for purchase and installation of play equipment at Richfield Lake Park in amount of $55,000 S.R. No. 107 H. Consideration of approval of purchase of equipment, software and services for voice-over IP phone system for new public works facility in amount of $78,626.15 S.R. No. 108 M/Kilian, S/Rosenberg to approve the Consent Calendar as amended. Motion carried 5-0. Item #7 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT CALENDAR City Attorney Heine presented Staff Report No. 102, former Consent Calendar Item #6B. Consideration of approval of payments to City of Bloomington for partial acquisitions of Home Depot and Forklifts of Minnesota properties as part of Lyndale Avenue bridge project. City Attorney Heine stated Forklifts of Minnesota had not reached an agreement, only Home Depot. M/Goettel, S/Kilian to approve payment to City of Bloomington for partial acquisition of Home Depot property as part of Lyndale Avenue bridge project. Motion carried 5-0. Item #8 PUBLIC HEARING REGARDING ISSUANCE OF NEW ON-SALE WINE AND 3.2 PERCENT MALT LIQUOR LICENSES, WITH OPTIONAL 2 A.M. CLOSING FOR ARIBEL’S 1120 EAST 66TH STREET (CONTINUED FROM APRIL 8, 2008) S.R. NO. 109 Mayor Goettel presented Staff Report No. 109. Mayor Goettel asked about the cooperative manner of the applicant. Council Meeting Minutes -6- April 22, 2008 Acting Public Safety Director Fritz responded that the applicant has been generally cooperative but not as forthcoming as staff would have liked. City Manager Devich stated the Public Safety Department requested, on three occasions, the property owner’s phone number and the applicant was not forthcoming; however, the information was eventually received. City Attorney Heine explained there is no additional information available on the foreclosure of the property except that the redemption period expires in July. Marilyn Machacek, 6529 11th Avenue, and Bill Owen, 6535 11th Avenue, spoke against issuing the license because of noise nuisances at night and on the weekends. Chetranee Jwalapersad Seepersaud, applicant, stated the restaurant is mainly daytime takeout and they close at 12 a.m. They are aware of the noise complaints from the music so they have decided to no longer have group parties or loud music. She continued that there is no alcohol served during the day with most business being in the evening and on the weekends. Mayor Goettel asked Ms. Seepersaud about not being forthcoming regarding the second violation of the state liquor law. Ms. Seepersaud explained the beer was not purchased for resale and the State told her that customers could bring in their own beer and wine. City Attorney Heine stated she would need to review the statute to determine if an on-sale liquor license gives the right to allow consumption and display. She added that Aribel’s did have a liquor license in December 2007 but could not purchase for sale. Ms. Seepersaud explained she was only asked once for the property owner’s phone number and was away for the other calls. The owner lives in Connecticut. Council Member Sandahl asked Ms. Seepersaud about the property’s foreclosure. Ms. Seepersaud said she is in the process of buying the property. M/Wroge, S/Rosenberg to close public hearing. Motion carried 5-0. Mayor Goettel stated there appears to be a conflict with the noise perspective. Acting Public Safety Director Fritz explained that the police calls are in the evening and now Aribel’s is requesting the ability to stay open until 2 a.m. Council Member Kilian asked about the impact of take out food and liquor/food sales ratio. City Attorney Heine explained State law, as well as the City ordinance, allows issuance of a license to a restaurant if it qualifies based upon the seating requirements needed for meals served regularly on the premises. If all food is take-out and liquor is served, the restaurant qualification may not be met. The City ordinance does not distinguish the food versus liquor ratio for take-out. Council Member Kilian stated if 80% of the food is take-out, the business is a bar not a restaurant. Council Meeting Minutes -7- April 22, 2008 Council Member Wroge stated that having a liquor license in Richfield is a privilege not a right. He said his main concern is what is really going on at the business because considering expenses like food, insurance, liquor, taxes, utilities, etc., it appears a profit is not being made. Council Member Wroge said he did not support issuing a license because Aribel’s has abused the privilege and has done a disservice to the neighborhood. Mayor Goettel agreed and said she did not support the license because many restaurants are doing the right thing and are cooperative and a precedent should not be set. Council Member Kilian agreed that he did not support the license because the limit on second chances has been reached. Council Member Rosenberg agreed to not support the license because Aribel’s has not demonstrated good business behavior in Richfield and expectations have not been met. She added her appreciation for the neighborhood feedback. Council Member Sandahl questioned the police calls for service as stated in the Staff Report. Acting Public Safety Director Fritz explained extra patrols were requested and reported but that did not necessarily indicate there was a problem. M/Goettel, S/Kilian to direct staff to prepare a resolution with findings to deny the issuance of new on-sale wine and 3.2 percent malt liquor licenses with option 2 a.m. closing for Aribel’s, 1120 E 66th St, for City Council consideration on May 13, 2008. Motion carried 5-0. Item #9 CONSIDERATION OF SECOND READING OF ORDINANCE RELATING TO SALE OF INTOXICATING LIQUOR BY HOTELS, ON-SALE WINE LICENSES AND COMBINATION LICENSES AND AMENDING SUBSECTIONS 1202.01, 1202.05, 1202.07, AND 1202.21 OF THE RICHFIELD CITY CODE AND RESOLUTION AUTHORIZING SUMMARY PUBLICATION OF ORDINANCE S.R. NO. 110 Council Member Wroge presented Staff Report No. 110. M/Wroge, S/Kilian that this constitutes the second reading of Bill No. 2008-8 to approve an ordinance relating to sale of intoxicating liquor by hotels, on-sale wine licenses and combination licenses and amending subsections 1202.01, 1202.05, 1202.07, and 1202.21 of the Richfield City Code, that it be published in the official newspaper and that it be made part of these minutes, and that the following resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 10090 RESOLUTION APPROVING SUMMARY PUBLICATION OF BILL NO. 2008-8 Motion carried 5-0. This resolution appears as Resolution No. 10090. Council Meeting Minutes -8- April 22, 2008 Item #10 CONSIDERATION OF SECOND READING OF ORDINANCE AMENDING CITY ADMINISTRATIVE CODE CHAPTER 3, SUBSECTION 310.13, DESCRIBING APPOINTMENT AND PLACEMENT OF RELATIVES S.R. NO. 111 Council Member Kilian presented Staff Report No. 111. M/Kilian, S/Wroge that this constitutes the second reading of Bill No. 2008-9 to approve an ordinance amending City Administrative Code Chapter 3, Subsection 310.13, describing appointment and placement of relatives, that it be published in the official newspaper and that it be made part of these minutes. Motion carried 5-0. Item #11 CONSIDERATION OF CONTINUATION OF GAS AND ELECTRIC FRANCHISE FEES TO PROVIDE FUNDS FOR CITY’S STREET MAINTENANCE AND FORESTRY PROGRAMS S.R. NO. 112 Council Member Rosenberg presented Staff Report No. 112. M/Rosenberg, S/Sandahl to approve continuation of gas and electric franchise fees to provide funds for City’s street maintenance and forestry programs. Council Member Sandahl asked about the impact of increased road construction costs and gas tax on the services paid from franchise fees. Public Works Director Eastling explained the current market in road construction contracts is good and in the short term, increased gas costs are covered. Council Member Kilian asked about the replacement trees provided in the forestry portion of the franchise fees. Public Works Director Eastling explained that, historically, the City has been able to keep pace and meet the supply for boulevard trees. However, due to increased Dutch elm disease this year, it may become difficult. Council Member Sandahl discussed the Minneapolis program where residents can buy trees from the City. She requested the City consider such a program that could be funded by franchise fees. City Manager Devich stated staff is reviewing instituting a pilot program to work within the forestry funds available now. Council Member Wroge stated he did not support franchise fees because residents shouldn’t pay sales tax on street maintenance and forestry but rather it should be included in the general levy. Larry Wozniczka, 6744 Wentworth Avenue, requested the continuation of franchise fees be considered for the 2009 budget because he believes these street maintenance and forestry services to be more costly for residents as a fee than on property taxes. Council Meeting Minutes -9- April 22, 2008 City Attorney Heine stated the City Council is not prohibited from considering terminating or decreasing franchise fees. Council Member Sandahl noted that some properties that do not pay real estate taxes, do pay franchise fees. Motion carried 4-1. (Wroge opposed) Item #12 CITY MANAGER’S REPORT City Manager Devich stated a joint City Council/School Board Worksession will be held on July 14, 2008 at the school district administrative offices. City Manager Devich requested clarification regarding the public input process on the proposed recreational vehicle storage in residential areas ordinance. The City Council consensus was to have an open house type format similar to the proposed new City Hall open houses, including display boards of storage alternatives, ordinance options from strict to lenient, and an opportunity to provide written comments. The City Council agreed the open houses should be on a weeknight and a Saturday morning. City Manager Devich reported the proposed new City Hall open houses are May 1 and 3, 2008. City Manager Devich discussed the recent television report on the issue related to the noise from the pool air-handling unit at Richfield Middle School. He expressed his concern that some people viewed the City’s response to one resident’s complaint as punitive. The issue of noise is more complicated than people appreciate. City Manager Devich continued that the City was already reviewing the disparity between the City’s noise ordinance standards and the Minnesota Pollution Control Agency’s standards before the City became aware of the air-handler complaints. City Attorney Heine discussed the complexity of enforcing noise standards. She quoted Minnesota Statute §116.07 in part: “No local governing unit shall set standards describing the maximum levels of sound pressure which are more stringent than those set by the Pollution Control Agency”. City Attorney Heine discussed the factors of ambient noise and that the City of Bloomington took two noise readings that were not in violation. Mayor Goettel stated the State must comply with federal standards but can be stricter so she questioned the ability of Richfield being stricter than State standards. City Attorney Heine explained there was a misunderstanding of the standards. She discussed her conversation with the Minnesota Pollution Control Agency indicating their rules for control noise standards. Council Member Wroge discussed the school’s comments of “not having to do anything” as bad public comment. The noise is affecting the neighborhood. He added the perception is the rules are being changed. Council Meeting Minutes -10- April 22, 2008 City Attorney Heine stated the noise measurements at the school were subjective determinations made based upon one complaint. Now more complaints have been received so the City will need to investigate further. City Attorney Heine stated that in her personal opinion City staff have done the best they could with the initial reading and was not sloppy, uncaring, or punitive in their actions. Some residents made incorrect assumptions. Mayor Goettel said that in light of the testimony received and conversations with the school board, the school board appears cooperative in resolving this issue. Mayor Goettel stated she had conversations with Steve Orfield, Orfield Labs, regarding this noise issue and he may have some advice on quietude. Richfield has density that is not in other communities. Council Member Sandahl said that it appears Richfield does not have an enforceable noise ordinance at this point. She added that different people have different perceptions of noise. City Manager Devich explained the City ordinance should match the Minnesota Pollution Control Agency’s noise standards so an enforceable ordinance is in place. Also, the City and school board should work together to reach a resolution to the noise from Richfield Middle School. City Manager Devich added that if the City Council wishes a more definitive measure on the noise level, it would be costly. Mayor Goettel stated that should not be done in this instance. If people see mitigative measures, they will be satisfied. Council Member Sandahl added that there is encouragement that the school has already made some adjustments. Public Works Director Eastling reported the closing of the American Boulevard and 76th Street bridges at the same time for about a week. Staff attempted to delay the 76th Street closure but MnDOT responded that they could not responsibly do a delay. Item #13 CLAIMS AND PAYROLL M/Rosenberg, S/Wroge that the following claims and payrolls be approved: U.S. BANK 04-22-08 A/P Checks: 167644 – 168013 $ 2,353,641.86 PAYROLL 48107 – 48432, 41340 - 41342 $ 475,525.56 TOTAL $ 2,829,167.42 Motion carried 5-0. Council Meeting Minutes -11- April 22, 2008 The City Council meeting was adjourned ' Date Approved: May 13, 2008 C. Cheryl Krumholz Recording Secretary City Manager CITY OF RICHFIELD, MINNESOTA Bid Opening April 14, 2008 2:00 p.m. 2008 Maintenance Facility Furnishings Bid No. 08-04 Pursuant to requirements of Resolution No. 1015, 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 Maintenance Facility Furnishings, as advertised in the official newspaper orr April 3, 2008. Present: Nancy Gibbs, City Clerk Cheryl Krumholz, City Manager Representative Randy Hughes, Operations Superintendent The following bids were submitted and read aloud: Bidder Bid Bond Addenda System Table Chair (Not required) 1 & 2 Furniture Alternative Business Furniture, Inc. N/A ~/ $30,826.00 $8,649.00 $10,870.00 Eden Prairie, MN General Office Products N/A ~/ $43,460.27 $17,232.70 $14,184.57 St. Louis Park, MN Henricksen PSG (Public Sector Group) N/A ~/ $41,370.57 $14,515.51 $12,520.80 Minneapolis, MN Intereum N/A d $36,647.00 $12,793.00 $14,707.00 Plymouth, MN Marco Workplace Interiors ~ ~ $48,930.68 $13,277.39 $16,059.09 St. Cloud, MN The City Clerk announced that the bids would be tabulated and considered at the April 22, 2008 City Council Meeting. Nancy Gibbs City Clerk