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02-10-09 Regular CITY COUNCIL MEETING MINUTES Richfield, Minnesota Regular Meeting February 10, 2009 CALL TO ORDER The meeting was called to order by Mayor Goettel at 7:05 p.m. ROLL CALL Members Present: Debbie Goettel, Mayor; Sue Sandahl; Pat Elliott; Fred Wroge; and Tom Fitzhenry. Staff Present: Steven L. Devich, City Manager; Mike Eastling, Public Works Director; John Stark, Community Development Director; Barry Fritz, Public Safety Director; Jim Topitzhofer, Recreation Services Director; Brad Sveum, Fire Services Director; Karen Barton, Community Development Manager; Pam Dmytrenko, Assistant to the City Manager; 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- February 10, 2009 M/Sandahl, S/Wroge to approve the minutes of (1) Special City Council/City Hall Advisory Task Force Meeting of January 22, 2009; (2) Special City Council Worksession of January 23, 2009; (3) Special City Council Meeting of January 27, 2009; and (4) Regular City Council Meeting of January 27, 2009. Motion carried 5-0. Item #1 INTRODUCTION OF RICHFIELD FIREFIGHTER JOHN WOLFGRAM Fire Services Director Sveum introduced Richfield Firefighter John Wolfgram. Item #2 INTRODUCTION OF RECENTLY PROMOTED RICHFIELD FIRE CAPTAIN JOHN HUPPERTZ Fire Services Director Sveum introduced recently promoted Richfield Fire Captain John Huppertz. Item #3 COUNCIL DISCUSSION ? HATS OFF TO HOMETOWN HITS ? REQUEST FROM MINNEAPOLIS CITY COUNCIL MEMBER ELIZABETH HODGES Council Member Fitzhenry discussed the Richfield Middle School Open House and History Day event that he, Council Member Wroge and Council Member Elliott attended recently. Council Member Sandahl discussed the request from Minneapolis City Council Member Elizabeth Hodges for the City of Richfield to consider requiring calorie labeling and banning trans fat on fast food menus. Council Member Wroge suggested that every restaurant, not just fast food, have this requirement. Mayor Goettel said she would bring this information to the Advisory Board of Health for their review. Mayor Goettel acknowledges the Certification of Appreciation from MIRA to the City. Mayor Goettel reported on a recent Regional Council of Mayors Meeting. Mayor Goettel read a statement regarding groundwater, soil and drinking water testing for Class B firefighting foams. Council Meeting Minutes -3- February 10, 2009 Item #4 COUNCIL APPROVAL OF AGENDA Mayor Goettel removed Item #7 to be discussed at a future Special City Council Worksession. M/Wroge, S/Elliott to approve the agenda as amended. Motion carried 5-0. Item #5 CONSENT CALENDAR A. Consideration of approval of first reading of ordinance amendment to Richfield City Code 1202.07 subd. 3(b) requiring only on-sale intoxicating liquor licensed establishments to have total market value, including land and buildings, of at least $600,000 as license eligibility requirement and scheduling second reading for February 24, 2009 S.R. No. 31 B. Consideration of approval of resolution amending conditional use permit allowing construction of additional 75-foot telecommunication tower at 6221 Portland Avenue, Richfield Water Treatment Facility S.R. No. 32 RESOLUTION NO. 10217 RESOLUTION APPROVING AN AMENDED CONDITIONAL USE PERMIT ALLOWING CONSTRUCTION OF AN ADDITIONAL 75-FOOT TELECOMMUNICATION TOWER AT 6221 PORTLAND AVENUE (CITY WATER TREATMENT FACILITY) This resolution appears as Resolution No. 10217. C. Consideration of approval of resolutions affirming and ratifying submittal of applications to Hennepin County for transit oriented development program grant for streetscape and transit improvements on Penn Avenue Corridor and at Lakes of Lyndale Corridor S.R. No. 33 RESOLUTION NO. 10214 RESOLUTION AFFIRMING AND RATIFYING CITY STAFF SUBMITTAL OF AN APPLICATION TO HENNEPIN COUNTY FOR TRANSIT ORIENTED DEVELOPMENT (TOD) PROGRAM GRANT FUNDS FOR PENN AVENUE SOUTH This resolution appears as Resolution No. 10214. RESOLUTION NO. 10215 RESOLUTION AFFIRMING AND RATIFYING CITY STAFF SUBMITTAL OF AN APPLICATION TO HENNEPIN COUNTY FOR TRANSIT ORIENTED DEVELOPMENT (TOD) PROGRAM GRANT FUNDS FOR LYNDALE AVENUE SOUTH This resolution appears as Resolution No. 10215. Council Meeting Minutes -4- February 10, 2009 D. Consideration of approval of resolution authorizing land acquisition, design and construction cooperation agreement between Metropolitan Council Environmental Services and City of Richfield for Edina-Richfield Interceptor Improvements Project S.R. No. 34 RESOLUTION NO. 10216 RESOLUTION AUTHORIZING THE CITY OF RICHFIELD TO ENTER INTO A LAND ACQUISITION, DESIGN, AND CONSTRUCTION COOPERATION AGREEMENT WITH METROPOLITAN COUNCIL FOR THE EDINA-RICHFIELD (1-RF- 491 RELIEF) INTERCEPTOR IMPROVEMENTS PROJECT This resolution appears as Resolution No. 10216. E. Consideration of approval of proposed Surface Water Comprehensive Plan for City of Richfield S.R. No. 35 F. Consideration of approval of amendment to 2009 emergency preparedness contract with City of Bloomington for outreach and training coordination with grant funds received related to Community Emergency Response Team S.R. No. 36 G. Consideration of approval of, as to form, memorandum of understanding between City of Bloomington and any Richfield entities who will agree to support goal of alternative methods of dispensing preventive medication to entire City population within 48 hours S.R. No. 37 H. Consideration of approval of purchase of five new Richfield Police squad cars from Elk River Ford, Inc. in amount of $116,211.80 S.R. No. 38 M/Sandahl, S/Goettel to approve the Consent Calendar. Motion carried 5-0. Item #6 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT CALENDAR None. Item #7 CONSIDERATION OF FIRST READING OF TRANSITORY ORDINANCE PROVIDING EXPENDITURE FUNDS FROM SPECIAL REVENUE FUND FOR CERTAIN CAPITAL IMPROVEMENT AND SCHEDULE PUBLIC HEARING AND SECOND READING FOR MARCH 10, 2009 S.R. NO. 39 This item was removed from the agenda. Item #8 CONSIDERATION OF RESOLUTION AUTHORIZING AMENDMENTS TO 2008- 2009 LABOR AGREEMENT WITH INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 49 S.R. NO. 40 Council Meeting Minutes -5- February 10, 2009 Mayor Goettel presented Staff Report No. 40. M/Goettel, S/Wroge that the following resolution be adopted and that it be made part of these minutes:: RESOLUTION NO. 10218 RESOLUTION DESIGNATING CITY'S CONTRIBUTION TOWARDS HEALTH AND DENTAL INSURANCE PREMIUMS AND SALARY INCREASE FOR EMPLOYEES COVERED BY THE INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 49 Motion carried 5-0. This resolution appears as Resolution No. 10218. Item #9 PUBLIC HEARING REGARDING REQUEST TO EXCEPT VELMEIR COMPANY FROM PENN AVENUE DEVELOPMENT MORATORIUM ENACTED SEPTEMBER 11, 2008 FOR PROPOSED CVS DEVELOPMENT AT 6528 PENN AVENUE AND RECOMMENDING DENIAL OF REQUEST TO ALLOW CONSIDERATION OF CONDITIONAL USE PERMIT APPLICATION AT 6528 PENN AVENUE WITH FINDING S.R. NO. 41 Council Member Elliott presented Staff Report No. 41. Tom Rublein, 2016 West 64th Street, Penn Avenue Advisory Group Member, urged the City Council to deny the request for an exemption and expressed disappointment in CVS’ approach to the development because they know about the moratorium. Gordon Hanson, 6311 Sheridan Avenue, Penn Avenue Advisory Group Member, spoke against the exemption request because the CVS building strays too far from the design guideline principles approved by the City Council and could set a precedent. Bob Hall, 7309 Oliver Avenue, requested the developer make their presentation before comments are provided by the public. Peter Coyle, Larkin Hoffman Daly & Lindgren Ltd., applicant’s legal counsel, expressed CVS’ desire to pursue the project in a cooperative manner and acknowledged there are differences in opinion. He discussed how the proposed site does meet the design guidelines and is the best suited design for the site’s maximum performance operations. Council Member Elliott stated it appears the guidelines are trying to make a one-size-fits-all design standard. He expressed concern regarding site grade differences. He suggested staff work with CVS to reach a compromise. Community Development Director Stark explained site setback and grade issues can be addressed through a variance. Mayor Goettel requested an engineering firm review the site line of the project. Council Member Wroge asked about the expectation of the developer for government financial assistance. Council Meeting Minutes -6- February 10, 2009 Mr. Coyle responded this project was private financing. Bob Hall, 7309 Oliver Avenue, stated it appears the footprint of the project is in the design guidelines as proposed by the developer and suggested the City Council revisit the design guidelines. He questioned the number of employees that will be at the site and its impact on the City. Bill Wolfson, representing the ownership of the property, spoke in favor of the project as proposed because it could be an impetus to revitalizing the Penn Avenue Corridor and works well with ARC Value Village. Council Member Fitzhenry asked about the displacement of local businesses. Mr. Wolfson explained the leases currently in place and their staggered expirations so there is a short window of time to renew leases. Some businesses will in-fill existing vacancies in the Corridor and some will be displaced. Mr. Wolfson stated the property owner was not invited or made aware of the Penn Avenue Advisory Group meetings. He added that he thought their building was not affected and not considered in the corridor design guideline principles. Community Development Director Stark explained staff talked with all properties in the Corridor and they were invited to the four open houses. Council Member Elliott asked the property owner about being bound to renegotiated leases and the economic marketability of filling the vacant Kensmor building. Mr. Wolfson stated there would be the probability of increased vacancies. Mayor Goettel asked Mr. Wolfson about their willingness to reach a compromise. Mr. Wolfson responded that they would do their best to accommodate the guidelines. David Gepner, 6845 Penn Avenue, Penn Avenue Advisory Group Member, requested the City Council not accept the proposed project in the form as presented by the developer and that there was room for compromise. M/Wroge, S/Sandahl to close public hearing. Motion carried 5-0. Community Development Director Stark explained the largest issue is the building placement. He discussed other CVS sites in the metro area with different setbacks. He added staff understood the lot was split as CVS and ARC Value Village but now it appears it is one lot which has not yet been evaluated by staff. Mayor Goettel expressed support for the guidelines and requested CVS work with staff to reach a compromise to avoid setting a precedent. Council Member Wroge stated a Penn Avenue Advisory Group Member told him the owner of the northwest corner of Penn Avenue and 66th Street was not invited to advisory group meetings. Council Member Wroge expressed concern that the largest property owner in the area was not involved in the guidelines process. He commented this is a private financing development and wanting to come into Richfield during these difficult economic times. Council Meeting Minutes -7- February 10, 2009 City Attorney Heine explained allowing a moratorium exception but complying with no zoning regulations could be problematic. She recommended the City Council direct staff to prepare a resolution with findings for City Council consideration at their next meeting and not make a decision until then. City Attorney Heine continued that the moratorium restricts development of property which is a land use issue. M/Goettel, S/Sandahl to direct staff to prepare a resolution to deny the request for an exemption with findings from the Penn Avenue moratorium for Velmeir Company for consideration at the next City Council Meeting and that staff work with the developer. Council Member Elliott stated he supported granting the exemption and that staff should work with the developer. Council Member Fitzhenry supported moving forward but that he was not comfortable with the design differences. Council Member Wroge stated support to remove the moratorium and move forward. Motion carried 3-2. (Wroge, Elliott oppose) Item #10 PUBLIC HEARING REGARDING RESOLUTION AUTHORIZING SPECIFIED USE OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ALLOCATION FOR 2009 S.R. NO. 42 Council Member Fitzhenry presented Staff Report No. 42. Recipients of the CDBG allocation addressed the City Council and expressed their appreciation for the support. M/Sandahl, S/Wroge to close public hearing. Motion carried 5-0. M/Sandahl, S/Fitzhenry that the following resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 10219 RESOLUTION AUTHORIZING USE OF FUNDS FOR THE 2009 URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AND AUTHORIZING EXECUTION OF SUBRECIPIENT AGREEMENT WITH HENNEPIN COUNTY AND ANY REQUIRED THIRD PARTY AGREEMENTS Motion carried 5-0. This resolution appears as Resolution No. 10219. Council Meeting Minutes -8- February 10, 2009 Item #11 CONSIDERATION OF PURCHASE OF CONSTRUCTION MANAGER SERVICES FROM STAHL CONSTRUCTION COMPANY FOR NEW POLICE/FIRE/CITY HALL FACILITY AND AUTHORIZE CITY MANAGER TO EXECUTE CONTRACT NOT TO EXCEED $571,000 (TABLED FROM JANUARY 27, 2009) S.R. NO. 43 Council Member Wroge presented Staff Report No. 43. Council Member Wroge questioned the removal of the arbitrator clause for the contract. City Attorney Heine explained arbitration is, generally, not favorable. M/Wroge, S/Elliott to approve purchase of construction manager services from Stahl Construction Company for new Police/Fire/City Hall Facility and authorize City Manager to execute contract not to exceed $571,000. Motion carried 5-0. Item #12 CONSIDERATION OF AWARD OF CONTRACT TO SHADYWOOD TREE EXPERTS FOR DISEASED TREE REMOVAL FROM CITY BOULEVARDS IN AMOUNT OF $62,901.24 S.R. NO. 44 Council Member Sandahl presented Staff Report No. 44. Council Member Wroge stated he did not support revising the City’s ordinance on forestry because he did not want to increase the 20 day timeframe for the homeowner to remove a diseased tree. The primary focus should not be on planting trees but rather protecting what is already in place. City Manager Devich stated this is a City Council policy decision. Public Works Director Eastling explained the benefits and potential operational cost savings of tree removal in the winter. He suggested the City Council ask the Community Services Commission to review this matter. The City Council consensus was to have the Community Services Commission review the forestry ordinance. M/Sandahl, S/Wroge to award contract to Shadywood Tree Experts for diseased tree removal from City boulevards in amount of $62,901.24. Motion carried 5-0. Item #13 CONSIDERATION OF APPOINTMENTS TO CITY ADVISORY COMMISSIONS S.R. NO. 45 Mayor Goettel presented Staff Report No. 45. Council Meeting Minutes -9- February 10, 2009 M/Goettel, S/Wroge to approve the following appointments to the City advisory commissions: FRIENDSHIP CITY COMMISSION Name Term Expires Dave Delzer January 31, 2012 PLANNING COMMISSION Name Term Expires Josh Root January 31, 2012 TRANSPORTATION COMMISSION Name Term Expires Gail Lund January 31, 2012 Motion carried 5-0. Item #13 CITY MANAGER’S REPORT None. Item #14 CLAIMS AND PAYROLL M/Goettel, S/Wroge that the following claims and payrolls be approved: U.S. BANK 02-10-09 A/P Checks: 183406 – 183795 $ 1,226,381.90 PAYROLL 55527 – 55856, 41407-41409 $ 479,691.43 TOTAL $ 1,706,073.33 Motion carried 5-0. OPEN FORUM None. The City Council meeting was adjourned by unanimous consent at 9:30 p.m. Council Meeting Minutes Date Approved: February 24, 2009 Cheryl K umho Recording Secretary ~n C~hr~ ~~,-., ~ n '~09