06-24-08 Regular
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Meeting
June 24, 2008
CALL TO ORDER
The meeting was called to order by Mayor Goettel at 7:03 p.m.
ROLL CALL
Members Present: Debbie Goettel, Mayor; Susan Rosenberg; Fred Wroge; Sue Sandahl; and
Bill Kilian.
Staff Present: Steven L. Devich, City Manager; Mike Eastling, Public Works Director;
John Stark, Interim Community Development Director; Barry Fritz, Acting
Public Safety Director; Chris Regis, Finance Manager; Jim Topitzhofer,
Recreation Services Director; Pam Dmytrenko, Assistant to City Manager;
Corrine Heine, City Attorney; and Cheryl Krumholz, Recording Secretary.
OPEN FORUM
Tom Rublein, 2016 West 66th Street, on behalf of the Penn Crossings Neighborhood
Advisory Committee, requested an update on a moratorium for the Penn Avenue/66th Street
revitalization project.
PRESENTATION OF COLORS AND PLEDGE OF ALLEGIANCE
Mayor Goettel led the audience in the Pledge of Allegiance.
APPROVAL OF MINUTES
Council Meeting Minutes -2- June 24, 2008
M/Kilian, S/Sandahl to approve the minutes of Special City Council Worksession of June
10, 2008.
Motion carried 5-0.
Item #1 RECOGNITION OF CENTENNIAL BABIES
Council Member Rosenberg presented the Centennial Babies with certificates from the City
of Richfield and gifts provided by Richfield Bloomington Credit Union (RBCU) and Babies’R’Us.
Item #2 PRESENTATION OF GOVERNOR’S FIT CITY AWARD
Commissioner Glen Wilson, Department of Commerce, presented the Governor’s Fit City
award to Michelle Padua, Advisory Board of Health chair.
Item #3 PRESENTATION OF HENNEPIN COUNTY 2008 WELLNESS BY DESIGN
AWARD
Mayor Goettel presented to Assistant to the City Manager Dmytrenko, the 2008 Wellness
by Design award.
Assistant to the City Manager Dmytrenko acknowledged the efforts of City staff member
Doris Swanson, for her efforts in making the wellness program successful.
COUNCIL DISCUSSION
Item #4
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HATS OFF TO HOMETOWN HITS
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UPDATE ON PUBLIC SAFETY ACTIVITY RELATED TO
RESTAURANTS
Council Member Rosenberg discussed the success of the recent Richfield Beautiful Home
and Garden Tour. She acknowledged the efforts of Mary Olafson and Doris Swanson.
Council Member Rosenberg announced she will not be seeking re-election this year.
Council Member Rosenberg stated the recreational vehicle storage/parking issue should
stop because she believes there could be one-issue candidates for City Council and there are
more issues to talk about and take care of than that. She also commended Council Member
Wroge for his emphasis on the Neighborhood Inspection Program.
Council Member Kilian stated he is working on his own with a group to draft a framework to
fit both sides of the recreational vehicle issue and hopes to present it to the City Council in two
weeks.
Council Meeting Minutes -3- June 24, 2008
Council Member Wroge stated people are making statements regarding the recreational
vehicle issue that are not factually true and that petitions don’t mean much to him. The City
Council has not met to discuss possible ordinance changes.
Council Member Sandahl stated she is willing to wait two weeks for a draft framework.
Council Member Sandahl discussed the recent grand opening of the new maintenance
facility.
Mayor Goettel discussed the new July 4 parade route.
Mayor Goettel requested staff provide an update on the property for sale in Edina at 69th
Street and Xerxes Avenue and the facelift at Richfield Shoppes at 65th Street and Nicollet Avenue.
Acting Public Safety Director Fritz provided an update on police and environmental health
activity at Jun Bo restaurant, 7717 Nicollet Avenue, and Frenchman’s, 1400 East 66th Street.
Item #5 COUNCIL APPROVAL OF AGENDA
Mayor Goettel amended the agenda as follows:
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Consider Item #14 before Item #9.
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Table Item #13.
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Add an additional item regarding possible litigation on the relocation of utilities at
66th Street and Portland Avenue to the scheduled Closed Executive Session
and return to open session to consider formal action on the two items discussed
in closed session.
M/Kilian, S/Wroge to approve the agenda as amended.
Motion carried 5-0.
Item #6 CONSENT CALENDAR
A. Consideration of approval of a resolution allowing the City to enter into a Cooperative
Agreement with Mn/DOT to administer the Reconstruction of the 6300 Block of Lyndale
Avenue Project S.R. No. 149
RESOLUTION NO. 10106
RESOLUTION AUTHORIZING THE CITY OF RICHFIELD TO ENTER
INTO MN/DOT AGREEMENT NO. 92642 ALLOWING FOR A LUMP
SUM PAYMENT FROM THE STATE OF MINNESOTA FOR THE
GRADING, SURFACING, STORM SEWER, WATER MAIN AND
SANITARY SEWER CONSTRUCTION ON LYNDALE AVENUE
This resolution appears as Resolution No. 10106.
Council Meeting Minutes -4- June 24, 2008
B. Consideration of approval for a community celebration event license and a temporary on-
sale 3.2 percent malt liquor license, with a request for fee waiver, for the Fourth of July
Committee for events scheduled to take place at Veterans Memorial Park, July 2 through
July 6, 2008 S.R. No. 150
C. Consideration of approval of a temporary on-sale 3.2 percent malt liquor license for the
Minneapolis-Richfield American Legion Post 435, 6501 Portland Avenue, for activities to
take place July 3 and 4, 2008 S.R. No. 151
D. Consideration of approval of a temporary on-sale 3.2 percent malt liquor license and a
public dance license for The Church of the Assumption for their annual Fun Fiesta to be
held August 16 and 17, 2008 S.R. No. 152
M/Sandahl, S/Goettel to approve the Consent Calendar.
Motion carried 5-0.
Item #7 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT
CALENDAR
None.
Item #8 PUBLIC HEARING AND CONSIDERATION OF SECOND READING OF
TRANSITORY ORDINANCE VACATING A PORTION OF UTILITY EASEMENT AT
800 WEST 66TH STREET (CONTINUED FROM MAY 13, 2008 AND JUNE 10,
2008) S.R. NO. 153
Council Member Kilian presented Staff Report No. 153.
M/Kilian, S/Wroge to close public hearing.
Motion carried 5-0.
M/Kilian, S/Wroge that this constitutes the second reading of Bill No. 2008-14, Transitory
Ordinance No. 18.59 authorizing vacating a portion of utility easement at 800 West 66th Street,
that it be published in the official newspaper and that it be made part of these minutes.
Motion carried 5-0.
Item #14 CONSIDERATION OF APPROVAL OF CONCEPTUAL TERMS OF PROPOSED
PUBLIC FINANCING FOR CEDAR POINT PHASE II REDEVELOPMENT
PROJECT S.R. NO. 159
Council Member Sandahl presented Staff Report No. 159.
Council Member Kilian asked about employment opportunities at the proposed project.
Council Meeting Minutes -5- June 24, 2008
Frank Lange, developer, explained the anticipated number of persons employed depending
upon the need.
Council Member Wroge expressed support for this financing because of the conceptual terms
and clarified action tonight was not authorizing selling of bonds. He continued that he is not an
advocate of tax increment financing but it will probably need to be used because development of this
area is owed to the residents.
Council Member Wroge discussed two developers came forward for Phase II and
Susee/LaNel was selected because it was a better fit for the community.
Mr. Lange discussed the proposed project.
Interim Community Development Director Stark stated that if the terms are approved tonight it
is an important step in the project but cautioned residents to not make a financial commitment on
another property and to continue discussions with the developer.
Jan Susse, developer, commented there will be contingencies on purchase agreements
because all 29 homes in the project area are needed.
M/Sandahl, S/Wroge to approve conceptual terms of proposed public financing for Cedar
Point Phase II redevelopment project.
Motion carried 5-0.
PUBLIC HEARING AND CONSIDERATION OF APPROVAL OF RESOLUTION
Item #9
ADOPTING THE FIVE-YEAR CAPITAL IMPROVEMENT BUDGET AND PLAN
FOR THE CITY PREPARED IN COMPLIANCE WITH MINNESOTA STATUTES,
SECTION 475.521 AND PROVIDE PRELIMINARY APPROVAL OF THE
ISSUANCE OF GENERAL OBLIGATION BONDS TO FINANCE CAPITAL
IMPROVEMENTS OF THE PLAN S.R. NO. 154
Council Member Sandahl presented Staff Report No. 154.
Council Member Wroge questioned when discussion regarding use of the Police and Fire
pension fund would be used to reduce the bond amount.
Finance Manager Regis explained the fund’s principal is reserved and the interest earnings
are used to fund Police and Fire expenditures in the General Fund. If the pension fund is used, a
financial gap would be created in the General Fund. This is a City Council policy decision to
change the use of pension fund money. The level of bonding proposed is the maximum allowed to
stay within the City’s Bank Qualifiable Debt Limit.
Larry Wozniczka, 6744 Wentworth Avenue, questioned the proposed bond debt increasing
the tax cap beyond what is permitted by the legislature. He urged the City Council to initiate a
referendum seeking voter approval before issuing bonds.
City Manager Devich discussed the tax levy limit implementation provisions in Minnesota
which does not include a debt service levy.
M/Kilian, S/Sandahl to close public hearing.
Council Meeting Minutes -6- June 24, 2008
Motion carried 5-0.
City Manager Devich explained the proposed capital bonds are to be used for a Police/Fire
facility which does not require a referendum. He also explained the process for a referendum
initiated by a petition from registered voters.
Council Member Sandahl stated the CIB/CIP includes more than funding for the City Hall
facility.
Council Member Wroge discussed several items in the CIB/CIP including right-of-way
improvements for retaining wall replacement, amphitheater, Lyndale Avenue Bridge Phase II, and
Lincoln Field improvements.
City Manager Devich explained the purpose of the CIB/CIP.
Mr. Wozniczka stated the CIP indicates the City Hall funding is with capital improvement
bonds.
City Attorney Heine clarified that general obligation bonds cannot be issued if there is no
voter referendum. Capital improvement bonds can be issued without a referendum but voters have
the ability to initiate a petition to require a referendum and submit it within 30 days if the City
Council approves the resolution tonight.
Rick Jabs, CHAT II Chair, asked about the cost attributed to a referendum.
City Clerk Gibbs explained the estimated costs, including if a special election on just the
referendum is held.
City Attorney Heine added that staff time costs should also be included to review the petition
for sufficiency.
M/Sandahl, S/Kilian that the following resolution be adopted and be made part of these
minutes:
RESOLUTION NO. 10113
ADOPTING A CAPITAL IMPROVEMENT PLAN AND PROVIDING
PRELIMINARY APPROVAL FOR THE ISSUANCE OF BONDS
THEREUNDER
Motion carried 5-0. This resolution appears as Resolution No. 10113.
Item #10 CONSIDERATION OF RESOLUTIONS REGARDING IMPOSING CIVIL
ENFORCEMENT ON ESTABLISHMENTS IN RICHFIELD THAT UNDERWENT
ALCOHOL COMPLIANCE CHECKS CONDUCTED BY RICHFIELD PUBLIC
SAFETY STAFF AND FAILED BY SELLING ALCOHOL TO UNDERAGE YOUTH
S.R. NO. 155
Mayor Goettel presented Staff Report No. 155.
Council Meeting Minutes -7- June 24, 2008
Mayor Goettel requested staff contact other cities regarding their civil enforcement process
and consider revising the resolution to require the manager, not a staff member, attend an alcohol
compliance sales awareness presentation.
M/Goettel, S/Wroge that the following resolutions be adopted and that it be made part of
these minutes:
V.F.W. Post No. 5555
– 6715 Lake Shore Drive – Gin Ng, V.F.W. representative, accepted
the violation occurred and stipulated to the suspension and penalty.
RESOLUTION NO. 10111
RESOLUTION SUSPENDING THE CLUB ON-SALE AND SUNDAY
LIQUOR LICENSES FOR FRED BABCOCK V.F.W., POST NO 5555,
INC., D/B/A FOUR NICKELS FOOD AND DRINK, 6715 LAKE
SHORE DRIVE, AND IMPOSING A CIVIL PENALTY FOR SECOND
TIME ALCOHOL COMPLIANCE FAILURE
This resolution appears as Resolution No. 10111.
Patrick’sFrench Bakery
– 2928 West 66th Street – Steven Brown, Patrick’s French Bakery
representative, admitted the violation occurred and stipulated to the suspension and penalty. Mr.
Brown stated, in his opinion, the penalties for the first-time offender is overly punitive and requested
City Council re-evaluation of the penalty.
RESOLUTION NO. 10109
RESOLUTION SUSPENDING THE ON-SALE WINE AND 3.2
PERCENT MALT LIQUOR LICENSES FOR PATRICK’S FRENCH
BAKERY, INC. D/B/A/ PATRICK’S BAKERY AND CAFÉ, 2928
WEST 66TH STREET, AND IMPOSING A CIVIL PENALTY FOR
FIRST TIME ALCOHOL COMPLIANCE FAILURE
This resolution appears as Resolution No. 10109.
Champp’s
– 790 West 66th Street – Kevin O’Hare, Champp’s partner, admitted the violation
occurred and stipulated to the suspension and penalty.
RESOLUTION NO. 10108
RESOLUTION SUSPENDING THE ON-SALE AND SUNDAY
LIQUOR LICENSES FOR CHAMPP’S, 790 WEST 66TH STREET,
AND IMPOSING A CIVIL PENALTY FOR FIRST TIME ALCOHOL
COMPLIANCE FAILURE
This resolution appears as Resolution No. 10108.
Aldi Foods
– 6310 Penn Avenue – Ken Gilbert, District Manager of Aldi Foods, admitted the
violation occurred and stipulated to the suspension and penalty.
Council Meeting Minutes -8- June 24, 2008
RESOLUTION NO. 10107
RESOLUTION SUSPENDING THE OFF-SALE 3.2 PERCENT MALT
LIQUOR LICENSE FOR ALDI FOODS, 6310 PENN AVENUE
SOUTH, AND IMPOSING A CIVIL PENALTY FOR FIRST TIME
ALCOHOL COMPLIANCE FAILURE
This resolution appears as Resolution No. 10107.
Richfield U.S.
– 6744 Penn Avenue – Gwen Flanders, Richfield U.S. representative,
admitted the violation occurred and stipulated to the suspension and penalty.
RESOLUTION NO. 10110
RESOLUTION SUSPENDING THE OFF-SALE 3.2 PERCENT MALT
LIQUOR LICENSE FOR RICHFIELD U.S., 6744 PENN AVENUE
SOUTH, AND IMPOSING A CIVIL PENALTY FOR FIRST TIME
ALCOHOL COMPLIANCE FAILURE
This resolution appears as Resolution No. 10110.
Motion carried 5-0.
Item #11 CONSIDERATION OF RESOLUTION REGARDING IMPOSING CIVIL
ENFORCEMENT ON ESTABLISHMENTS IN RICHFIELD THAT UNDERWENT
TOBACCO COMPLIANCE CHECKS CONDUCTED BY RICHFIELD PUBLIC
SAFETY STAFF AND FAILED BY SELLING TOBACCO TO UNDERAGE YOUTH
S.R. NO. 156
Mayor Goettel presented Staff Report No. 156.
M/Goettel, S/Kilian that the following resolution be adopted and that it be made part of these
minutes:
Gas Plus
– 7744 12th Avenue South – Tamara Dayton, District Manager of Gas Plus,
accepted the violation occurred and stipulated to the suspension and penalty.
RESOLUTION NO. 10112
RESOLUTION SUSPENDING THE TOBACCO LICENSE FOR GAS
PLUS, 7744 12TH AVENUE SO., AND IMPOSING A CIVIL PENALTY
FOR SECOND TIME TOBACCO COMPLIANCE FAILURE
Motion carried 5-0. This resolution appears as Resolution No. 10112.
Item #12 CONSIDERATION OF APPROVAL OF RESOLUTION AUTHORIZING CITY STAFF
TO INCUR COSTS FOR PROPOSED CONSTRUCTION OF NEW
POLICE/FIRE/CITY HALL FACILITY S.R. NO. 157
Council Meeting Minutes -9- June 24, 2008
Council Member Wroge presented Staff Report No. 157.
Council Member Wroge reviewed a letter received from Wold Architects clarifying
information presented by a Richfield resident at the June 10, 2008 Regular City Council Meeting
regarding the square footage of the new Edina facility compared to the proposed new Richfield City
Hall.
Council Member Wroge expressed support for the resolution and discussed potential
financial savings by using the Police and Fire pension fund. Losing the pension interest would
increase the General Fund but he questioned paying more for bonds if it wasn’t necessary. Taxes
will increase but this appears a prime time to use the pension.
Council Member Sandahl requested the Richfield resident who spoke regarding the facility’s
square footage be mailed a copy of Wold’s letter.
Finance Manager Regis discussed the annual pension interest levels.
Council Member Sandahl suggested moving forward with the proposed bond amount so
there is sure to be adequate funding and then possibly buying the bond down when the facility is
built.
City Manager Devich explained the allowable levy limit to make up the lost pension interest
is being reviewed. Using the pension funds is a City Council discussion and is included in the
budget process. The City Council’s previous action tonight allowed the maximum bonding. He
added the first funds to be spent on the project would be the $1 million already in reserve.
Council Member Wroge stated two houses, one HRA-owned and one privately-owned, need
to be purchased. He hoped the HRA would give back the house to the residents to build the new
City Hall.
Council Member Sandahl stated the funds are used to do HRA programs for Richfield
residents.
Council Member Kilian questioned how much of the pension fund could be used.
City Manager Devich responded that it is the City Council’s purview to use the funds as they
wish as long as it is for a Police and Fire facility or Police and Fire salaries and benefits.
Finance Manager Regis stated that statutorily, the State is not required to give cities their
levy limit before September 1.
City Attorney Heine clarified the action tonight does not decide the issues discussed; just
that the City will be able to use bond proceeds to reimburse itself for expenses incurred.
Council Member Sandahl stated she wants to maintain flexibility, architecturally and
financially, since outcomes on levy limits and funding are not yet known. She does not want to build
what is cheapest.
Council Member Kilian agreed with the need for flexibility.
Mayor Goettel agreed with considering alternatives in the building and added that options to
reduce taxes should be reviewed.
Council Meeting Minutes -10- June 24, 2008
Council Member Wroge stated that the building should be what can be afforded.
M/Wroge, S/Rosenberg that the following resolution be adopted and that it be made part of
these minutes:
RESOLUTION NO. 10114
DECLARING THE OFFICIAL INTENT OF THE CITY OF RICHFIELD
TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS
OF BONDS TO BE ISSUED BY THE CITY
Motion carried 5-0. This resolution appears as Resolution No. 10114.
Item #13 CONSIDERATION OF SECOND READING OF ORDINANCE AMENDMENT TO
RICHFIELD CITY CODE REPEALING SUBSECTION 509.17 AND AMENDING
SUBSECTION 925.01, SUBD. 4(A) RELATED TO CLEAR VISIBILITY AT
INTERSECTIONS S.R. NO. 158
This item was tabled.
Item #15 CITY MANAGER REPORT
None.
Item #16 CLAIMS AND PAYROLL
M/Rosenberg, S/Sandahl that the following claims and payrolls be approved:
U.S. BANK 06-24-08
A/P Checks: 169263 – 169593 $ 1,876,526.22
PAYROLL 49451 – 49830, 41352 - 41359 $ 515,952.46
TOTAL $ 2,392,478.68
Motion carried 5-0.
OPEN FORUM
None.
Council Meeting Minutes -11- June 24, 2008
City Attorney Heine stated that a Closed Executive Session was necessary to update the
City Council regarding current litigation for the acquisition of Lyndale Avenue Bridge right-of-way
and possible commencement of litigation on utility relocation in connection with the 66th Street and
Portland Avenue construction project. Absolute confidentiality of attorney-client information was
needed. The City Council will reconvene in open session following the closed session for possible
further discussion and decision regarding litigation in these two matters.
Mayor Goettel adjourned the open meeting at 10:10 p.m.
Item #17 CLOSED EXECUTIVE SESSION
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DISCUSS PENDING CONDEMNATION LITIGATION FOR ACQUISITION OF
LYNDALE BRIDGE RIGHT-OF-WAY
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DISCUSS POSSIBLE COMMENCEMENT ON UTILITY RELOCATION IN
CONNECTION WITH 66TH STREET/PORTLAND AVENUE INTERSECTION
RECONSTRUCTION PROJECT
The Closed Executive Session was called to order by Mayor Goettel in the Executive
Conference Room at 10:13 p.m.
Members Present: Debbie Goettel, Mayor; Susan Rosenberg; Fred Wroge; Sue Sandahl; and
Bill Kilian.
Staff Present: Steven L. Devich, City Manager; Mike Eastling, Public Works Director;
Kristin Asher, Assistant to City Engineer; Corrine Heine, City Attorney; Jim
Strommen, City Attorney; and Cheryl Krumholz, Recording Secretary.
The Closed Executive Session was convened pursuant to M.S. 13D.05.
The Closed Executive Session adjourned at 10:47 p.m.
The City Council reconvened the public meeting in the Council Chambers at 10:48 p.m.
M/Goettel, S/Sandahl to direct the City Attorney to proceed with settlement discussion
regarding acquisition of Lyndale Bridge right-of-way consistent with City Council discussion in
Closed Executive Session.
Motion carried 5-0.
M/Goettel, S/Rosenberg to authorize commencement of litigation by City Attorney against
utility relocation at 66th Street and Portland Avenue construction project as determined by City
Manager Devich, if necessary.
Motion carried 5-0.
Item #18 ADJOURNMENT OF REGULAR CITY COUNCIL MEETING IN COUNCIL
CHAMBERS
The City Council meeting was adjourned by unanimous consent at 10:52 p.m.
Council Meeting Minutes -~2-
Date Approved: July 8, 2008
Cheryl Kr mholz
Recording Secretary
June 24, 2008
City Manager