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11-23-92 agendaCITY OF RICHFIELD, MINNESOTA MONDAY, NOVEMBER 23, 1992 REGULAR CITY COUNCIL MEETING 7:00 P.M. COUNCIL CHAMBERS AGENDA INTRODUCTORY PROCEEDINGS CALL TO ORDER PLEDGE OF ALLEGIANCE APPROVAL OF MINUTES OF (1) SPECIAL CITY COUNCIL CLOSED EXECUTIVE SESSION OF NOVEMBER 9, 1992 AND (2) REGULAR CITY COUNCIL MEETING OF NOVEMBER 9, 1992 PRESENTATIONS 1. OPPORTUNITY FOR PERSONS TO ADDRESS THE COUNCIL ON ITEMS NOT LISTED ON THE AGENDA 2. PRESENTATION OF PROCLAMATION DESIGNATING DECEMBER 5, 1992 CLIFF PETERSON DAY IN RICHFIELD 3. PRESENTATION OF SILVER SERVICE AWARD TO MS. BETH HERMAN, STAFFING AND COMPENSATION ADMINISTRATOR AT RICHFIELD BANK AND TRUST CO.; AND HONORABLE MENTION AWARD TO MR. JAMES MILLER, OWNER OF TWIN CITY TIRE COUNCIL LETTER NO. 258 AGENDA APPROVAL 4. COUNCIL APPROVAL OF AGENDA CONSENT CALENDAR NOTE: CONSENT CALENDAR CONTAINS SEVERAL SEPARATE ITEMS WHICH ARE. ACTED UPON BY THE CITY COUNCIL IN ONE MOTION. ONCE THE CONSENT CALENDAR HAS BEEN APPROVED, THE INDIVIDUAL ITEMS AND RECOMMENDED ACTIONS HAVE ALSO BEEN APPROVED. NO FURTHER COUNCIL ACTION IS NECESSARY. HOWEVER, ANY COUNCIL MEMBER MAY REQUEST THAT AN ITEM BE REMOVED FROM THE CONSENT CALENDAR AND PLACED ON THE REGULAR AGENDA FOR COUNCIL DISCUSSION AND ACTION. ALL ITEMS LISTED ON THE CONSENT CALENDAR ARE RECOMMENDED FOR APPROVAL. 5A. CONSIDERATION OF APPROVAL OF RESOLUTION ESTABLISHING JUST COMPENSATION AND AUTHORIZING PURCHASE OF 7646 LYNDALE AVENUE AND CERTAIN S00 LINE RAILROAD PROPERTY; 77TH STREET PROJECT C.L. 259 B. CONSIDERATION OF APPROVAL OF SETTING DATE OF PUBLIC HEARINGS FOR RENEWAL OF WINE LICENSES C.L. 260 C. CONSIDERATION OF APPROVAL OF SETTING DATE OF PUBLIC HEARINGS FOR RENEWAL OF ON-SALE LIQUOR LICENSES C.L. 261 D. CONSIDERATION OF APPROVAL OF SETTING DATE OF PUBLIC HEARINGS FOR RENEWAL OF PAWNBROKER AND SECONDHAND GOODS LICENSES C.L. 262 E. CONSIDERATION OF APPROVAL OF EXPENDITURE OF $123,848 FOR INSTALLATION OF UTILITIES UNDERGROUND FOR 77TH STREET RECONSTRUCTION PROJECT C.L. 263 F. CONSIDERATION OF APPROVAL OF PAYMENT OF ARBITRAGE REBATE FOR GENERAL OBLIGATION IMPROVEMENT BONDS OF 1987 IN AMOUNT OF $5,200 C.L. 264 G. FIRST AND FINAL PAYMENT FOR OVERLAY PROJECT OF 64TH-67TH LYNDALE AND 76TH STREET BETWEEN I-35W BRIDGE; MIDWEST ASPHALT CORP.; $164,712.44 H. ESTIMATE #3 PAYMENT FOR SITE CONSTRUCTION AT JEFFERSON PARK; VEIT & COMPANY, INC.; $27,129.81 PUBLIC HEARINGS 6. PUBLIC HEARING ON CONSIDERATION OF OFF-SITE DIRECTIONAL SIGN PERMIT AT 100 WEST 78TH STREET FOR MOTEL 6 (DEFERRED FROM OCTOBER 26) COUNCIL LETTER NO. 265 7. PUBLIC HEARING AND CONSIDERATION OF INTERIM ORDINANCE FOR PURPOSE OF PROTECTING PLANNING PROCESS AND HEALTH, SAFETY AND WELFARE OF CITY RESIDENTS AND REGULATING AND RESTRICTING DEVELOPMENT OF SECONDHAND GOODS STORES, PAWN SHOPS AND SIMILAR USES WITHIN CITY COUNCIL LETTER NO. 266 RESOLUTION 8. CONSIDERATION OF RESOLUTION AUTHORIZING ACQUISITION OF 6636 SHERIDAN AVENUE FOR REDEVELOPMENT AND CONTINUED SINGLE FAMILY RESIDENCE PURPOSES COUNCIL LETTER NO. 267 0 PROPOSED ORDINANCE 9. CONSIDERATION OF RESOLUTION AUTHORIZING ACQUISITION. OF 6634 FOURTH AVENUE TO ALLOW HRA TO PROCEED WITH NEW CONSTRUCTION VO-TECH PROJECT; AND FIRST READING OF ORDINANCE AUTHORIZING SALE OF 6634 FOURTH AVENUE'TO HRA COUNCIL LETTER NO. 268 ADMINISTRATIVE REPORTS & OTHER BUSINESS 10. CONSIDERATION OF SELECTION OF AUDITING FIRM FOR CITY AND HRA FINANCIAL STATEMENTS FOR FIVE YEAR PERIOD COMMENCING WITH 1992 FINANCIALS COUNCIL LETTER NO. 269 AIRPORT BUSINESS 11. AIRPORT STATUS REPORT 12. LEGISLATIVE REPORT CORRESPONDENCE COUNCIL CHOICE 13. COUNCIL DISCUSSION ITEMS 14. CLAIMS AND PAYROLLS ADJOURNMENT Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the Administrative Services Director at 861-9702. • ID CITY OF RICHFIELD, MINNESOTA Council Letter No.269 Agenda November 23, 1992 Issue Statement: Selection of auditing firm for City and HRA financial statements for a five year period commencing with the 1992 financials. Background: For the past seven years, the City of Richfield has used the auditing firm of Deloitte & Touche (Deloitte, Haskins & Sells) to perform the annual City audit and the HRA audit. The selection of that firm was the result of a process which was performed in 1985 and resulted in a five year contract. In addition, the Deloitte firm was also used for two single year contracts at the conclusion of the five year agreement. Selection Process It has been the practice of the City to periodically seek proposals from a number of auditing firms to ensure that the City retains quality auditing services at a competitive price. At Council direction, City staff initiated an auditor proposal process during the fall of 1992 to select an auditor for the next five year period. On September 11, 1992, requests for proposal were sent to 13 • auditing firms that either expressed an interest or are known for their municipal practice. A preproposal conference was held on September 30 with a final deadline for submission of proposals set for October 16, 1992. Proposals were received from 10 firms including the City's current auditor. The proposals were reviewed separately by the Administrative Services Director and the Finance Manager, based upon an evaluation instrument recommended by the GFOA. This review concentrated on bid price as well as past experience auditing municipal accounts, especially those which have received the GFOA Certificate of Achievement for Financial Reporting. Based on this review, four firms were invited to participate in an interview process. Each of the firms submitted a similar time schedule for completion of the audit and presentation to the City Council in June or early July. This time frame allows the City to receive a "discounted" price since the schedule does not conflict with the prime audit months for tax and private firms. An interview panel consisting of Mayor Kirsch, Council Member Sandahl, the City Manager, Administrative Services Director and Finance Manager conducted interviews on Monday, November 9, 1992. The four firms interviewed were: Peat Marwick; Eide Helmeke & Co.; Tautges, Redpath & Co.; and Deloitte & Touche. Selection Analysis Based on the results of the selection process, it was the consensus of the panel that the firm of Deloitte & Touche be selected as the City's Auditor for the next five year period. It) --- issue presented by the Deloitte firm during the course of the • interview was the specific audit.partner assigned to the Richfield audit. In accordance with standard Deloitte & Touche policy, Cliff Hoffman would be reassigned from Richfield. Mr. Hoffman has served on the Richfield audit in the past and would be replaced by another partner, Jeffrey Radunz. This would ensure that the account would receive a new perspective, similar to rotating audit firms. However, it is most important to note that the selection of an auditing firm is exclusively within the purview of the City Council. The function of any auditor is to audit work performed by staff and report directly to the City Council with the results. The role of the staff in this selection process is to assist the City Council in identifying the qualifications, abilities and cost of selecting any audit firm. Recommended Motion: It is recommended that the City Council appoint the firm of Deloitte & Touche as the City's Auditor for the financial reporting of the fiscal years 1992-96, and authorize the City Manager and Mayor to execute an agreement for such services. Basis for Recommendation: 1. Based on a comprehensive selection process, it was the consensus recommendation that the firm of Deloitte & Touche 40 be appointed as the City's Auditor for the years 1992-96. 2. The price submitted by Deloitte & Touche for the audit of the City's 1992 financial report is the same as the price for the previous year and price increases for the ensuing four years are increased by 3.5%. 3. The Deloitte & Touche firm audits more municipalities in the Twin Cities' area and audits more municipalities that consistently receive the GFOA Certificate than any other audit firm in the area. 4. Deloitte & Touche has provided the City of Richfield with quality auditing services and technical expertise in a variety of specialty areas over the past several years. 5. The agreement with the auditing firm will provide that the City may cancel the services of the auditor in any audit year with appropriate notice. Alternative Recommendation: If the City Council is not comfortable with selecting the same auditing firm that has audited the City for the past several years, even with the rotation of audit staff, another selection. could be made. In that event, the selection panel would recommend the selection of Tautges, Redpath & Co. Ltd. as the City's Auditor. lb-a The Tautges firm would also be well qualified to perform the City audit, although the panel felt that this firm did not have the same breadth of experience as Deloitte and the cost would be $2,038 or 8.2% higher than Deloitte & Touche. Discussion/Decision Mode: It would be desirable to select an audit firm at the November 23, 1992 City Council meeting to ensure adequate time for the preaudit activities to begin in order to complete the audit on a normal time schedule. Resp?tlf*lly submitted, Ja s R. Prosser Cit naaer JDP:ds 1 CITY OF RICHFIELD, MINNESOTA Council Letter No. 268 Agenda November 23, 1992 Issue Statement: Authorization to acquire 6634 Fourth Avenue to allow the HRA to proceed with a new construction Vo-Tech project, and first reading of an ordinance authorizing sale of the property to the HRA. Background: The HRA has utilized the Voluntary Acquisition Program to acquire substandard residential properties for redevelopment since 1980. The Vo-Tech has developed these sites with new housing units for moderate income families. HUD rules require that the City purchase the property and subsequently transfer it to the HRA to re-sell at the appropriate time. The City would acquire the property using the remainder of federal CDBG YR XVII funds and a portion of YR XVIII funds. Funds are reserved in the HRA's New Home budget for this acquisition. City revenues would.not be used for this purchase. A similar acquisition process was followed by the City Council in March 1992. The Council authorization and property transfer to the HRA resulted in the project now underway at 6501 15th Avenue. The Fourth Avenue structure is substandard as to size, room arrangement and physical condition. The owner, through participation in the Voluntary Acquisition Program, has stated an interest in selling the property to the HRA. An independent appraiser valued the • property at $48,000. $48,000. The HRA, at at this price pending City would enter into the property with CDB1 to the HRA for $1.00. Staff has negotiated a purchase price of their November meeting, authorized acquisition City Council approval. Upon authorization, the a purchase agreement with the owner to acquire 3 funds. The City would then sell the property It is anticipated that the City could acquire the property as soon as December 1992. Sale of the property to the HRA could occur February 22, 1993 if the second reading of the Transitory Ordinance is approved at the January 11, 1993 meeting. The seller is currently on a waiting list for senior housing. Staff wishes to be flexible on the closing date to allow the seller time to arrange a new residence. Acquisition should occur no later than April 1, 1993. The HRA would be responsible for any holding or maintenance costs incurred at the property after acquisition by the City. Site clearance and construction would not begin on the site until the property is transferred to the HRA. Recommended Motion: It is recommended that the City Council take the following actions: 1. Adopt the attached resolution which authorizes the City Manager and Mayor to: A. Enter into a purchase agreement and take other actions necessary to acquire the property at 6634 Fourth Avenue from the owner, Edna Bjorstrom, for $48,000. B. Enter into a sale agreement with the HRA and take other actions necessary to transfer the property to the HRA for $1.00. 2. Give first reading to the attached transitory ordinance. Schedule a public hearing and a second reading of the transitory ordinance to accomplish the sale to the HRA for January 11, 1993. Basis of Recommendation: 1. The HRA has identified this property for a new home project and authorized staff to acquire the property. 2. The property owner is interested in selling the property through the Voluntary Acquisition Program. 3. The property is substandard and qualifies for acquisition in accordance with the Voluntary Acquisition Program Guidelines. 4. Funds have been budgeted for acquisition, clearance, and maintenance from federal YR XVII and XVIII CDBG. The funds must be utilized for this purpose and to provide a new home for a moderate income, first time buying family. 5. Staff is finalizing the preliminary work which would commit this site to a Vo-Tech construction project in 1993. 6. A finding has been made by the Planning Commission that • acquisition and disposition of the property is in conformance with the Comprehensive Plan. 7. HUD rules require a process in which the City acquires the property and transfers it to the HRA.. 8. The HRA would like to finalize development contracts with Vo-Tech to initiate the project during spring 1993. 9. City owned property requires the adoption of a transitory ordinance to effectuate a sale. Alternative Recommendation: The City can choose not to acquire the property. However, the HRA would not be able to proceed with a Vo-Tech project in a timely manner. No better property acquisition site has been identified for the HRA first time buyer project. Discussion/Decision Mode: The sale from the City to the HRA will require a public hearing and second reading of a transitory ordinance scheduled for January 11, 1993. Res lly submitted, i Ja a Prosser City anager JDP:ds 9-a 0 RESOLUTION NO. THE CITY OF RICHFIELD, MINNESOTA CALLING FOR ACQUISITION AND A PUBLIC HEARING ON THE SALE OF CERTAIN LAND WHEREAS, the City has considered the purchase of 6634 Fourth Avenue with federal CDBG funds on behalf of the Richfield HRA for $48,000. The property is further described as: Address: 6634 Fourth Avenue South PID #: 27-028-24-41-0052 Legal Description: Lot 9, Block 3 "McCutchan's Portland Avenue Park", Hennepin County, Minnesota; and WHEREAS, the City of Richfield, Minnesota (the "City") proposes to sell the real property to the HRA for $1.00 in furtherance of HRA housing programs. WHEREAS, pursuant to the City Charter, Section 13.04, the City is authorized to sell its Property following a public hearing and second reading of a transitory ordinance for which notice was published not less than ten days before such hearing. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows: 1. The City Manager and Mayor are authorized to take those actions necessary to purchase 6634 Fourth Avenue for $48,000. 2. The City shall hold a public hearing and second reading of the ordinance regarding the sale of the land to the HRA for $1.00 on Monday, January 11, 1993. 3. The City Clerk is directed to publish notice of such hearing in the official newspaper of the City. Passed by the City Council of the City of Richfield this 23rd day of November, 1992. Martin J. Kirsch, Mayor ATTEST: Thomas P. Ferber, City Clerk q,,,3 • TRANSITORY ORDINANCE NO. AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE SALE, TRANSFER OR OTHER DISPOSITION AND CONVEYANCE OF CERTAIN CITY OWNED REAL PROPERTY LOCATED IN THE CITY OF RICHFIELD, COUNTY OF HENNEPIN, STATE OF MINNESOTA (6634 FOURTH AVENUE SOUTH) The City of Richfield Does Ordain: Section 1. The following described real property located in the City of Richfield, County of Hennepin, State of Minnesota, is hereby authorized to be sold, transferred or otherwise disposed of, and conveyed by the City as herein provided: Lot 9, Block 3 "McCutchan's Portland Avenue Park" Hennepin County, Minnesota, and having a street address of 6634 Fourth Avenue South Section 2. The Mayor and City Manager are hereby authorized to take all action as is required to sell, transfer, or otherwise dispose of and convey the real property described in the foregoing Section 1, including, by way of illustration and not limitation, the execution of all documents, purchase agreements, deeds of conveyance, and other instruments connected with such sale, transfer or disposition and conveyance. Passed this day of 1992 by the Richfield City Council. Martin J. Kirsch, Mayor ATTEST: Thomas P. Ferber, City Clerk CITY OF RICHFIELD, MINNESOTA Council Letter No. 267 Agenda November 23, 1992 Issue Statement: Authorization to acquire 6636 Sheridan Avenue for redevelopment and continued single family residence purposes. Background: A representative for Richard Cash, 6636 Sheridan, has proposed the voluntary sale of his property to the City. Staff has evaluated the property for either new construction or rehabilitation. The redevelopment options are summarized further on the attached. Although, both options have merit, the improvement to the neighborhood is greater if the existing house structure is demolished and a new home built. A program approach similar to Richfield Rediscovered is envisioned where a market rate sale to a builder/buyer team could be initiated after City purchase. A new two, three or four bedroom home that complements the site and neighborhood could be provided. A purchase by the City should occur as soon as possible and, in.any case, prior to the end of February 1993. The Planning Commission must consider whether acquisition and disposition by the City is consistent with the comprehensive plan. This finding will be considered on November, 24, 1992. . Recommended Motion: Adopt the attached resolution which accomplishes the following: 1. Authorizes staff to negotiate and purchase the property for approximately $65,000 and initiate a new construction redevelopment project at the site. 2. Authorizes the City Manager and Mayor to execute a purchase agreement and other documents as necessary to effectuate the purchase. Sale to a builder would be considered by the City Council at an appropriate future time. Basis of Recommendation : 1. The property has been voluntarily offered for sale. 2. A purchase price of approximately $65,000 is being negotiated and should be finalized in the next 10 days. (The 1992 estimated market value for tax purposes is $71,300.) 3. An opportunity to purchase and greatly improve the residential quality of use of the property has been presented. This property was originally purchased by Mr. Cash in 1975 as a "handyman special". Rehabilitation initiatives of the owner, unsightly storage of materials, general property maintenance, and health and safety issues have been continuing concerns of the neighborhood and City. The need for continuous monitoring and actions in a court of law have become the rule rather than the exception. t -1 4. The property is close to foreclosure which is scheduled for February 1993. By allowing the foreclosure to proceed, creditors will likely not be adequately reimbursed. The increasingly deteriorating conditions are unlikely to be resolved by Mr. Cash or creditors given this financial circumstance. The future investment is likely to be insufficient to elevate the quality of improvements to match those in the neighborhood. 5. Delaying the purchase prolongs the existing conditions. 6. Redevelopment options exist. The purchase/new construction option provides the opportunity for value added improvements to a neighborhood of $80,000 to $90,000 homes. A property valued at $110,000 or more is envisioned. The rehabilitation option resolves deteriorating conditions. However, rehabilitation, unless even more significant than proposed, does not overcome the economic obsolescence that has occurred. There may be hidden costs due to unforeseen circumstances during rehabilitation. Approximately $41,960 in rehabilitation only yields a property valued at $75,000 to $80,000. 0 7. New construction is more cost effective over time than rehabilitation because of the substantially higher real estate taxes generated. In addition, the rehabilitation could be substantially higher in cost than estimated due to hidden damage. 8. A funding source for acquisition and demolition is available. Staff resources are available to redevelop the site, identify a builder/buyer team, enter into a development agreement, and develop a new home. r 9. City Council authorization is contingent on a finding by the Planning Commission that acquisition and disposition for residential purposes is in conformance with the Comprehensive Plan. That finding will be considered November 24, 1992. Alternative Recommendation: Do not authorize acquisition. Alternately, authorize acquisition with a different project scope. Discussion/Decision Mode: Authorization provides a an end of February 1993. A summer 1993. opportunity to acquire/demolish by the new home could be provided as soon as ly submitted, • Jam s Prosser Cit anager JDP:ds ?-a RESOLUTION NO. • THE CITY OF RICHFIELD, MINNESOTA RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY WHEREAS, the City of Richfield, Minnesota, desires to purchase certain real property being described as: 6636 Sheridan Avenue South; Lot 12, Block 4, "Tingdale Bros.' Lincoln Hills" Hennepin County WHEREAS, the City is authorized by Minnesota Statutes to acquire real property within its jurisdiction; and WHEREAS, the City has authorized a program which buys residential property for the development of new homes; and WHEREAS, the property has been voluntarily offered for sale for $64,814; and WHEREAS, the City would acquire the property to correct blighting housing and public nuisance conditions and provide housing in decent and safe condition; and WHEREAS, a funding source has been identified. • NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows: 1. Staff is authorized to purchase 6636 Sheridan Avenue for $64,814. 2. The City Manager and Mayor are authorized to execute a purchase agreement and other documents as necessary to effectuate the purchase. Adopted by the City Council of the City of Richfield, Minnesota this 23rd day of November, 1992. Martin J. Kirsch, Mayor ATTEST: Thomas P. Ferber, City Clerk n U a-3 . New Construction Proposal 6636 Sheridan Summary of Improvements The existing single family home would be removed. A builder/buyer team would be identified to develop a new single family home with: 2, 3, or 4 bedrooms, 2 bathrooms, maintenance free exterior, a house design complimentary to the neighborhood, and a finished landscape. Activity • Demolition of structure (garage would be retained and renovated by builder) Informal bidding, identification of demolition contractor, identification of builder, monitoring of demolition, construction, and builder sale to buyer. Holding costs prior to sale to builder Closing and marketing expenses with builder Cost $5,000 in-kind (housing staff) $ 200 500 Total Estimated New Construction Cost: $5,700 Outcome: A new single family property valued at or above $110,000. New construction, after a builder/buyer is identified requires 3 to 4 months and provides a home ready to occupy after May, 1993. Homestead property taxes would approximate $1,800 annually after sale to an owner occupant. Approximately $850 is presently received annually. Summary of Transaction: Purchase by City: $64,814 Project Cost: $ 5,700 Total Cost: $70,514 Proceeds of Sale (lot and garage): $32,500 Estimated Net Cost: $38,014 Additional Comments: The Richfield Rediscovered program is presently underway and this site could be added to existing work assignments with little difficulty. Project cost estimates have minimal unknowns. Builder/buyer interest in sites such as 6636 Sheridan has been high. n U • Rehabilitation Proposal 6636 Sheridan Summary of Improvements Inspections have noted a strong and penetrating pet odor and deteriorating conditions. Rehabilitation has two components. One resolves building, health and safety concerns. A second component makes repairs to systems and conditions. These repairs and improvements would provide a home that more closely matches conditions in the neighborhood. The objective is to provide a house product that will not have recurring problems one to five years into the future. Activity Repair blight conditions (electric, plumbing, heating, walls, doors, windows, floors, bathroom, insulation, grade, siding, trim) Make repairs and improvements which return home to quality of neighborhood and ready home for sale. (Complete partially finished construction, remodel kitchen, remodel bath, install maintenance free siding and trim, roof repair, new electric fixtures, replace windows and doors as necessary, install landscape materials). Detailed inspection, preparation of scope of work, formal competitive bidding, awarding of bid, monitoring of construction to completion, marketing and sale of home upon completion. Holding costs during rehabilitation. Closing and marketing expenses. Total Estimated Rehabilitation Cost (plus?) Cost $18,931 $20,229 in-kind (housing staff) $ 1,300 $ 1,500 $41,960 Outcome: A 2 bedroom single family home valued between $75,000 and $80,000. Rehabilitation after competitive bidding, would require 3 to 4 months. A home might be ready to market after May, 1993. Homestead property taxes would approximate $1,000 annually after sale to an owner occupant. Approximately $850 is presently received annually. (continued, next page) n ?-5 Summary of Transaction: Purchase by City: $64,814 Project Cost: $41,960 Total Cost (plus?) $106,774 Proceeds of Sale: $77,500 Estimated Net Cost: $29,274 Additional Comments: Estimates are considered the minimum scope of work. The basis for these estimates is ongoing similar rehabilitation work performed on homes by the Richfield HRA. The in-kind staff commitment is more time intensive than new construction. Staff is assuming a new project of considerable scope which was not previously planned. The most significant cost unknowns that can't be entirely planned for are: 1. The extent to which flooring, subflooring, walls and cabinetry must be removed and replaced to rid the home of penetrating odors and stains of pets. 2. The extent to which two existing layers of siding and underlayment must be removed to repair visible exterior moisture problems and rot. E 0 CITY OF RICHFIELD, MINNESOTA Council Letter No. 266 Agenda November 23, 1992 • Issue Statement: Public hearing and consideration of an interim ordinance for the purpose of protecting the planning process and the health, safety and welfare of City residents and regulating and restricting the development of secondhand goods stores, pawn shops and similar uses within the City. Background: The City Council has previously considered adoption of a resolution authorizing a study and imposing a temporary moratorium on licensing of secondhand goods stores, pawn shops and similar uses within the City in order to provide an adequate opportunity for the study to be completed. It is appropriate for the Council to conduct a public hearing and consider by ordinance imposing a moratorium for a period of one year. The moratorium could be removed prior to that time by City Council action. The Council has received a request to exclude auction houses from this moratorium. However, the conclusion of our City Attorney is that such an exclusion would possibly impair the planning process. (See attached letter.) The attorney also recommends clarifying the moratorium ordinance by specifically including auction houses. That clarification is included within the attached draft. Recommended Motion: • Adopt an interim ordinance restricting development of secondhand goods stores, pawn shops and similar uses within the City for a period of one year. Basis for Recommendation: 1. Allow adequate opportunity for study of this issue. 2. Allow adequate opportunity for Planning Commission and City Council consideration. Alternative Recommendation: 1. The Council may decide not to institute a moratorium but to continue with the study. 2. If the Council does not approve the resolution authorizing the study then it would be inappropriate to consider this ordinance. Discussion/Decision Mode: This matter will be presented meeting of November 23. for action at the City Council lly submitted, • JDP:ds Jam sV . Prosser Cit naaer 1,,-? ORDINANCE NO. • INTERIM ORDINANCE FOR THE PURPOSE OF PROTECTING THE PLANNING PROCESS AND THE HEALTH, SAFETY, AND WELFARE OF CITY RESIDENTS; AND REGULATING AND RESTRICTING THE DEVELOPMENT OF SECONDHAND GOODS, PAWNBROKER, AND SIMILAR USES WITHIN THE CITY THE CITY COUNCIL OF THE CITY OF RICHFIELD ORDAINS: Section 1. Background. 1.01. The City's zoning ordinance does not contemplate or adequately address the classification of secondhand goods stores, pawnshops, auction houses and other similar uses. 1.02. The City's zoning ordinance is unclear as to whether uses such as secondhand goods stores, pawnshops, auction houses and rummage shops other similar uses should be classified as "retail stores," which are permitted uses in a C-2 general commercial zoning district, or whether a new classification should be adopted for those uses. 1.03. In addition to the proper zoning classification of such uses, there are a number of significant planning and land use issues pertaining to the regulation of such uses, including the following: 1. The particular zoning districts in which such uses should be allowed as either permitted or conditional uses. 2. The concentration and density of such uses in the City and its neighborhoods. 3. The effect of such uses on other uses in the surrounding area. 1.04. There is a need for a study to be conducted so that the City can adopt a set of comprehensive plans and land use zoning regulations pertaining to such uses. Such a study will address the land use and zoning issues, including those referenced above. The study will also address the City's licensing regulations regarding secondhand goods stores and pawnshops and the extent to which the licensing regulations require modifications in order to maintain harmony and consistency between the zoning and licensing regulations. 0 1.05. There is a need for an interim ordinance to be adopted for the purpose-of protecting the planning process and the health, safety, and welfare of the citizens of the City and to ensure that the City and its citizens retain the benefits of the City's comprehensive plan and zoning ordinance until such a study has been completed. There is a need to restrict such uses until such a study has been completed and any modifications to the City's zoning and land use regulations are accomplished. 1.06. The City Council has directed that such a study by undertaken. 1.07. Minnesota Statues, section 462.355, subd. 4 (Act) permits the adoption of interim zoning ordinances during the planning process. Section 2. Planning and Zoning Study; Moratorium. 2.01. A study is authorized to be conducted by City staff to determine how uses such as secondhand goods stores, pawnshops, auction houses and other similar uses should be regulated within the City. The scope of the study should include, but is not limited to, the following: a. the particular zoning districts in which such uses should be allowed as either permitted uses or • conditional uses; b. the density and concentration of such uses; c. the effect of such uses on other uses in the surrounding area; d. the need, if any, for modifications to the licensing regulations regarding secondhand goods stores and pawnshops. 2.02. Upon completion of the study, the matter is to be considered by the Planning Commission for its review and recommendation to the City Council. 2.03. A moratorium on the development of secondhand goods stores. and pawnshops, auction houses and other similar uses is adopted pending completion of the study and the adoption of any amendments to the City's zoning ordinance. No license or building permit may be issued for such uses or for the expansion of any existing use during the moratorium period nor may any rezonings, plattings or replattings, or land divisions or consolidations be granted by the City for such uses during the moratorium period. The. moratorium period shall expire on November 26, 1993 or such earlier date as may be further adopted by ordinance. The moratorium period may be extended for a reasonable time by ordinance, as may be necessary to complete the study and adopt any necessary amendments to the City's zoning ordinance. -7-3 Section 3. Effective Date. This ordinance is effective in accordance with Section 3.09 of the Richfield City Charter. Passed by the City Council of the City of Richfield, Minnesota this th day of 1992. Martin J. Kirsch Mayor ATTEST: Thomas P. Ferber City Clerk 0 1 ? { {fin REG MEMORANDUM TO: Jim Prosser FROM: Corrine Heine Assistant City ttorney DATE: November 18, 1992 RE: Moratorium; Auction Houses 1,4 At the council meeting on November 9, 1992, the city council requested that our office report on whether the moratorium on pawnshops, secondhand goods stores, and similar uses should be interpreted to apply to auction houses. This issue arose because of an inquiry by a person who has expressed an interest in opening an auction house in Richfield. As explained by the applicant, an auction house operates on a consignment basis. Items are taken in during the week, and a sale is held once a week. The sale is conducted by a licensed auction- eer. No fee is charged until an item is sold, at which point a fee the auction house collects a percentage of the sale price. The City's moratorium relai shops, "and other similar u houses are included in the First, could the language auction houses -- i.e., is secondhand goods store or actually intend to impose a ;es to secondhand goods stores, pawn- ses." The question of whether auction moratorium is a question of intent. reasonably be interpreted to include an auction house a similar use to a pawnshop? Second, does the council moratorium on auction houses? In determining whether the uses are similar, the focal issue is whether the uses present similar land use impacts and regulatory concerns -- not whether the business operations are identical. The applicant stressed the differences in the way that fees are charged, but that operational difference is not determinative, if the reasons for adopting the moratorium on pawnshops apply with equal force to auction houses. In my opinion, auction houses are a similar use to secondhand goods stores and pawnshops, and the ordinance and resolution could be interpreted as imposing a moratorium on auction houses. Just as with pawnshops and secondhand goods stores, the City's zoning ordinance does not clearly indicate the proper zoning classifica- tion for an auction house. According to City staff, no application has ever been received for an auction house. In the past, pawnshops and secondhand goods stores have been treated as "retail stores" and given a C-2 zoning classification. It would appear, however, that auction houses may have different traffic impacts, noise impacts and parking demands than run-of-the-mill retail stores, because auction house sales are concentrated in a single day rather than spread over an entire week. This issue -- of the 1 1.1-6 appropriate zoning classification and land use controls for auction houses -- deserves study by City staff. Like secondhand goods stores and pawnshops, auction houses deal in the sale of previously used, rented, owned or leased personal property. The City's regulatory concern is the same as for pawnshops, i.e., that auction houses could be used to dispose of stolen property. As part of the study under the moratorium, the City will be considering changes to its licensing regulations, and the regulatory issues raised by auction houses merit similar study. In summary, auction houses are similar in operation to secondhand goods stores and pawnshops and do raise similar land use and regulatory issues. It is reasonable to interpret the City's moratorium on pawnshops and similar uses as including auction houses. Although no change to the moratorium ordinance is required, for the sake of clarity I recommend that the council amend the moratorium ordinance on second reading to specifically include auction houses. A revised ordinance is provided with this memorandum. If the City council did not intend to impose a moratorium on auction houses, then the ordinance should be amended on second reading to specifically exclude auction houses. 2 CITY OF RICHFIELD, MINNESOTA Council Letter No. 265 Agenda November 23, 1992 Issue Statement: Public hearing on consideration of an off-site directional sign permit at 100 West 78th Street. (Deferred from October 26, 1992.) Background: Adams Outdoor Advertising has submitted an application for an off-site directional sign permit at 100 West 78th Street. The off-site directional sign is for Motel 6 at 7640 Cedar Avenue. The City Code allows off-site directional signage provided specific location, sign and impact conditions are met. Recommended Motion: Approve the off-site directional sign permit at 100 West 78th Street. Basis for Recommendation: 1. This proposal meets the requirements for issuance of an off- site directional sign permit. 2. The State of Minnesota has reviewed and approved this proposal. Alternative Recommendation: The City Council could deny this request with a finding that the proposal does not meet the requirements set forth for issuance of the permit, and that the proposal would have an adverse impact on the surrounding properties. Discussion/Decision Mode: A public hearing is scheduled at 7:00 p.m. on Monday, November 23, 1992. The hearing will be held in the City Council Chambers of Richfield City Hall, 6700 Portland Avenue. Notice of public hearing was mailed to property owners within 350 feet and published in the Sun-Current. Respect lly submitted, Jame . Prosser City M ager JDP:ds 11 HajoM-.uaM ?IL a z s 0 o? c o s IS) 4-1 w J s m o ? to ? v S NI i i i o ? u -'? IL- • ?z O O U ?- X1.,7 O O L (!) S 4-1 3 C? R ?Nl lold w z 5? CITY OF RICHFIELD, MINNESOTA Council Letter No. 264 Agenda November 23, 1992 Issue Statement: Payment of arbitrage rebate for General Obligation Improvement Bonds of 1987 in the amount of $5,200. Background: The Tax Reform Act of 1986 extended arbitrage rebate rules to all tax-exempt bonds. The basic requirement is that earnings on any investment of gross bond proceeds which are in excess of what could have been earned if they were invested at that rate carried by the bonds, must be rebated to the U.S. Treasury. The arbitrage rebate must be remitted to the U.S. Treasury within 60 days of the five-year anniversary date from when the bonds were issued. The rabate calculation must be performed every five years until the bonds are retired. The $1,080,000 General Obligation Improvement Bonds of 1987 are subject to the arbitrage rebate requirements. A portion of the bond proceeds ($610,000) were used to finance the Academy of Holy Angels (AHA) sprinkler system, which was subsequently assessed to the AHA. This use of the proceeds was considered "private activity," which rendered the bond issue subject to the arbitrage • rebate rules. The $610,000 was invested separately from the City's pooled investments, and interest earnings have been cumulating to fund the arbitrage rebate. Deloitte & Touche performed the rebate calculation based on the daily cash flow of the bond proceeds and the interest earned thereon. The arbitrage rebate calculated was $5,200. Due to the extensive detail of the calculation and the due date of November 13, 1992, the rebate amount was not available until the week of the due date, and thus was not presented to the City Council until this time. Recommended Motion: Approve the payment of the arbitrage rebate for the General Obligation Improvement Bonds of 1987 in the amount of $5,200. Basis for Recommendation: 1. The arbitrage rebate regulations require payment of the rebate within 60 days of the five-year anniversary date of the bond issuance. Payment subsequent to November 13, 1992 would have included penalties. 2. Deloitte & Touche calculated the rebate to be $5,200. 3. City staff reviewed the supporting calculations and agrees with the rebate amount. ?S -I 4. The extensive detail required must be processed by both the accounting firm did not allow specific rebate payment amount Council meeting. to make this calculation Finance Division and the adequate time to present at the November 9, 1992 which a Alternative Recommendation: None. The City must make the arbitrage rebate payment according to Federal Law. Discussion/Decision Mode: An interim check was issued to cover the City's rebate obligation on November 13, 1992. The payment should now be considered for City Council approval at the next City Council meeting, which is November 23, 1992. lly submitted, RespeYanager JameProsser City JDP:ds 0 0 CITY OF RICHFIELD, MINNESOTA 51? Council Letter No. 263 Agenda November 23, 1992 Issue Statement: Approval of expenditure of $123,848 for installation of utilities underground for the 77th Street reconstruction project. Background: Our engineers completed a study of the available options and costs of burying the power, telephone and cable television lines (copy attached). Burying utility lines provides obvious visual benefits. Not only are the wires and poles unsightly but trees must be kept trimmed away from the lines, giving them an unnatural appearance. After considering the costs and benefits of burying the lines in the various sections of the project, BRW and staff recommend that the overhead wires between Nicollet Avenue and Chicago Avenue be buried as part of the 77th Street construction. Burying of utility lines is not an eligible expense in the Federal Demonstration Grant or MSA (gas tax) funds. There are sufficent funds in the Capital Project Funds to cover this cost. However, staff is recommending that other sources be explored prior to a final funding decision in 1993. Recommended Motion: Approve the removal of overhead utility lines along the north side of 77th Street between Nicollet and Chicago Avenues and relocate the utilities below grade along the south side of 77th Street between Nicollet and Chicago Avenues as part of the reconstruction of 77th Street. Basis of Recommendation: 1. The relocation of the utility lines will provide an improved visual environment along 77th Street. 2. Removal of or damage to existing trees will be minimal, and the addition of new trees will not be affected. Alternative Recommendation: 1. Require that the utility lines be maintained above ground. Discussion/Decision Mode: A decision is needed November 23 as plans for the relocation of the utility lines should begin promptly. lly submitted, Ja e . Prosser Ci y nager JDP:ds Attachment Memorandum ??? I 10 R B R W INC. DATE: November 6, 1992 TO: Don Fondrick Mike Eastling FROM: Arijs Pakalns, AIA, AICP Tony Heppelmann, PE RE: Above Grade Private Utility Issues 77th Street Project Planning Transportation Engineering Urban Design This memorandum outlines the urban design issues relating to the above Thresher S a e ground private utilities in the 77th Street Project area and presents qu r recommendations regarding resolution of the above grade private utility 700 Third Street So. relocation and reconstruction. Minneapolis, MN 55415 BACKGROUNDASSUES 6121370-0700 Fax 612/370-1378 The reconstruction of 77th Street is a major project in the City of Richfield. It Minneapolis will have a significant functional and visual impact on the adjoining residential Phoenix areas as well as on the commercial strip along I-494. Two important beneficial Denver impacts of the project are an enhanced appearance and edge condition for the St. Petersburg residential areas and improved visual appearance and, therefore, greater San Diego potential for future redevelopment of the strip along I-494. Seattle One of the key components, in terms of improving the visual environment, is Donald W. l the location of the above grade utility lines. The reconstruction of 77th Street o Wolsfeld sfeld Richard P. requires the relocation and reconstruction of three private utilities which are Peter E. Jarvis Thomas E Carroll currently located above grade: NSP power lines; U.S.. West telephone lines; Craig A. Amundsen and cable television lines. The issues which need to be resolved are: where Donald E. Hunt should the lines be relocated to and what would be the associated costs of the John B. McNamara relocation? Richard D. Pilgrim Dale N. Beckmann *Jeffrey L. Benson Ralph C. Blum Gary J. Erickson John C. Lynch Paul N. Bay • SE,a- Don Fondrick Mike Eastling November 6, 1992 Page 2 EXISTING CONDITIONS The 77th Street corridor has three different above grade utility conditions: the utilities are located on the south side of the roadway; the utilities are located on the north side of the roadway; or the utilities cross the roadway. Figure 1 illustrates the various above grade utility conditions along the corridor: In Segment 1, I-35W to Lyndale Avenue, the utilities are located on poles along the south side of the roadway between Emerson and Aldrich Avenues. • In Segment 2, Lyndale Avenue to Nicollet Avenue, there are no above M grade NSP utilities along 77th Street, but three major NSP feeder lines cross 77th Street above grade at the following locations: the mid-block property line between Garfield and Harriet Avenues; Pleasant Avenue; and the mid-block property line between Blaisdell and Nicollet Avenues. In Segments 3 and 4, Nicollet Avenue to Portland Avenue and Portland Avenue to Chicago Avenue, a major NSP feeder line is located on poles along the north side of 77th Street. In Segment 5, Chicago Avenue to TH 77, a major NSP feeder line is located on poles along the south side of 77th Street, between Elliot and Bloomington Avenues, and a major feeder crosses 77th Street above grade between 12th and 13th Avenues. ALTERNATIVES There are basically two options for accommodating the utilities: leave them above grade; or place them in conduits below grade. Leaving the utilities above grade has visual appearance implications and placing them below grade has cost implications. i Don Fondrick Mike Eastling November 6, 1992 Page 3 Above Grade Alternative The visual appearance implications of leaving utility lines above grade are relatively obvious. The more utility lines are left above grade the more cluttered and unsightly the environment will appear. In addition, NSP power lines can not be located in the vicinity of large trees or the trees need to be trimmed back to accommodate the power lines. The pruning of large trees around power lines often deforms them and can be harmful to them. Figure 2 illustrates the option of locating the utility lines above grade north of the residential loop roads. In this alternative, the utility lines would impact the large existing trees adjacent to the loop, roads and the pedestrian walkways and they might require tiebacks across the loop roads. The trees, many of which are located on private properties, would need to be heavily trimmed or removed to accommodate the utility lines. Other locations for above grade utility lines, such as along the screen wall or in the boulevard south of 77th Street, would have similar impacts by restricting the ability to plant large trees in those areas. Below Grade Alternative Locating utilities below grade eliminates the impact on the visual environment but has severe implications related to cost. The general agreement between the utilities and the City is that the utilities will absorb the cost of adjusting or relocating utility lines, as required for City projects. However, improvements to the utility systems, such as converting them from above grade to below grade installations, have to be borne by the improvement project, the City, or private developers, if the improvements are part of private redevelopment projects. The primary issue in relocating utility lines below grade, is the cost of placing the NSP power lines in conduits and providing the required switches and other electrical equipment to modify the system. Since the telephone and cable 0 0 Don Fondrick Mike Eastling . November 6, 1992 Page 4 television companies utilize primarily NSP poles for supporting their cables, they will relocate their lines below grade if NSP relocates below grade. Table 1 lists the costs associated with relocating the NSP power lines, in the 77th Street corridor, to new locations above grade as well as relocating the power lines below grade. The column titled "Relocate" includes all costs required for relocation and adjustment of the NSP power lines above grade. These costs would be borne entirely by NSP. The column titled "Locate Below Grade" includes the total cost. of placing the NSP power lines below grade. The amounts shown in the last column indicate the cost difference between placing the NSP power lines below grade and relocating them above grade. This difference would be the City's share of the cost to locate the NSP power lines below grade. TABLE 1 COSTS FOR RELOCATING NSP POWER LINES IN THE 77TH STREET PROJECT CORRIDOR (Cost Data Provided by NSP) Segment Relocate (NSP Cost) Locate Below Grade Difference (City Cost) 1. 35W - Lyndale Avenue $ 38,558 $ 67,752 $ 29,194 2. Lyndale - Nicollet 19,843 120,723 100,880 3. Nicollet - Portland 50,338 136,910 86,572 4. Portland - Chicago 17,750 55,026 37,276 5. Chicago - TH 77 0 61,500 61,505 TOTAL $126,489 $441,916 $315,427 n 5E-5 • Don Fondrick Mike Eastling November 6, 1992 Page 5 RECOMMENDATIONS Ideally, in order to minimize visual clutter, all utility lines should be placed below grade. However, because of budget constraints, this may not always be feasible. With the understanding that funding for relocating utilities below grade may be limited, following is a discussion of each segment of the corridor with recommendations regarding utility relocation. Segment 1 - I-35W to Lvndale Avenue In this segment, the utility lines, which serve the commercial strip along 77 1/2 Street, are located on poles along the south side of 77th Street. The utility poles and utility lines add to the generally cluttered appearance of this area but, since this area has been identified for future redevelopment, it would be a reasonable approach to leave them in place with the understanding that the above grade utility lines will be removed and relocated below grade at the time that this area is redeveloped. Segment 2 - Lvndale Avenue to Nicollet Avenue In this segment, three main feeder lines cross 77th Street above grade. Utility lines crossing the street are less visually intrusive and less of a negative impact than lines running parallel to the street. Because of their minimal visual impact and because of the relatively high cost to relocate the crossings below grade, it is recommended that these crossing remain in place, at this time. However, every effort should be made, in the future, to relocate the utility line crossings below grade, especially if redevelopment occurs in the area, or if other opportunities arise. Segments 3 and 4 - Nicollet Avenue to Chicago Avenue The conditions, in regard to the above grade utilities, are the same in Segment 3 as in Segment 4, except that Segment 3 will be reconstructed in Phase 1 of he 77th Street reconstruction project whereas Segment 4 will be • reconstructed in Phase 2. The options in these segments are to relocate the 5E? ?0 Don Fondrick Mike Eastling November 6, 1992 Page 6 utility lines on poles north of the residential loop roads or to place them below grade under the sidewalk on the south side of 77th Street. Whichever relocation choice is made, the same solution should be.applied in both segments. Since relocating the utility lines above grade north of the loop roads will have significant visual impact as well as impacts on the existing trees along the property boundaries, it is recommended that in these two segments the utility lines be relocated below grade under the sidewalk on the south side of 77th Street. The overall costs for the NSP line relocations in Segments 3 and 4, as shown in Table 1, will be $136,910 for Segment 3 and $55,026 for Segment 4 resulting in a total relocation below grade cost of $191,936. The City's portion of the costs will be $86,572 _for Segment 3 and $37,276 for Segment 4 resulting in a total Cost to the City of $123,848. Segment 5 - Chicago Avenue to TH 77 This segment, which is similar to Segment 1, has utility lines located in the boulevard, south of 77th Street, between Elliot and Bloomington Avenues. The area south of 77th Street, although it has not been identified as a definite redevelopment project, does have long-term redevelopment potential. In addition, the conditions in this area may change with the proposed reconstruction of I-494. In light of these two future impacts, it would be a reasonable approach to hold off relocation of the utility lines below grade, in this segment, for now. However, just as in Segment 1, the decision to leave the utility lines above grade should be done with the understanding that the long-term goal is to relocate the utility lines below grade. 5e • Don Fondrick Mike Eastling November 6, 1992 Page 7 SUMMARY In summary, the recommendations regarding the above grade utilities in the 77th Street Project area are as follows: Remove the overhead utility lines in Segments 3 and 4, between Nicollet and Chicago Avenues, and relocate them below grade under the sidewalk along the south side of 77th Street. The cost to the City of these improvements will be approximately $123,848. • Pursue, in the future, the removal of all above grade utilities in the project area. Placement of all utilities below grade should be an objective in all • redevelopment projects. The priorities for relocating the utility lines below grade should be as follows: first, Segments 3 and 4, Nicollet Avenue to Chicago Avenue; next, Segments 1 and 5, I-35W to Lyndale Avenue and,Chicago Avenue to TH 77; and, finally, Segment 2, Lyndale Avenue to Nicollet Avenue. AP/jkh RII734 0 C I• I t ? 'S '3AV oat { ;. 'S '3AV ONZ ` • ' 1 1 's 'IV SN3A315 w 's 'ml isl j ? (ZS HVSO) 'S '3Av iTnOOIN T I , s 3AV 113OSnne 1 t ? 'S '3,\V RLt§O*.LN3M I , .s 3AV wnesllld ANVdN as Nn OOS 'S 3AV 1NVSV3ld rM ? '? ... V i 'S '3AV L3lNbVH •s •3AV Ol33aV0 . , _. _. 1. 's 3Av 3WY Nkl i •s 'mV HOlaOlr ow •s '3Ar 1NVAN9 :...A/ ; •s W xvn,o 0 4 ,w s 3AV iNOdno '3 /// 3AVNOSa3M3 a? i .IV r ... V0n3ad 3 •3nr aavai? 61. C^ A W w w x V ?i F F V Wil b LE 0 0 00, -sv H-. U m N a oa 0 a a 0 0 7 Z^ N H F O as a 0 NQ x a 0 F U rT 6D CITY OF RICHFIELD, MINNESOTA Council Letter No. 262 Agenda November 23, 1992 Issue Statement: Setting date of public hearings for the renewal.of pawnbroker and secondhand goods licenses. Background: The pawnbroker and secondhand goods licenses will expire on January 1, 1993. City ordinance provides that the City Council conduct a public hearing to consider all pawnbroker and secondhand goods license renewals. Recommended Motion: Schedule December 14, 1992 as the date to hold public hearings on the renewal of pawnbroker and secondhand goods licenses for Twin Cities Gold & Silver; The Gun Shop and Pawnbroker; and Plaza Pawn. Basis for Recommendation: 1. Hearings must be scheduled and held before a renewal license may be considered. 2. The renewal process has been initiated. . 3. Holding the public hearings on December 14 will provide ample time to complete the licensing process before January 1, 1993. Alternative Recommendation: 1. Schedule the hearings for another date. However, this may delay the licensing process. Discussion/Decision Mode: Action to schedule the public hearings on November 23, 1992 will provide sufficient time for legal publication of the hearings. Resp ully submitted, Jam D. Prosser City Manager JDP:ds CJ 5 c., CITY OF RICHFIELD, MINNESOTA Council Letter No-261 Agenda November 23, 1992 Issue Statement: Setting date of•public hearings for renewal of on-sale liquor licenses. Background: The on-sale liquor licenses for restaurant establishments will expire on January 1, 1993. City ordinance provides that the.City Council conduct a public hearing to consider all liquor license renewals. Recommended Motion: Schedule December 14, 1992 as the date to hold public hearings on the renewal of liquor licenses for Chi Chi's Mexican Restaurante; The Ground Round; Khan's Mongolian Barbecue; American Legion Post No. 435; VFW Post No. 5555; and Champps of Richfield. Basis for Recommendation: 1. Hearings must be scheduled and held before a renewal license may be considered. 2. The renewal process has been initiated. 3. Holding the public hearings on December 14, 1992 will provide ample time to complete the licensing process before January 1, 1993. Alternative Recommendation: 1. Schedule the hearings for another date. However, this may delay the licensing process. Discussion/Decision Mode: Action to schedule the public hearings on November 23, 1992 will provide sufficient time for legal publication of the hearings. Respeq-?fully submitted, Jai eb?. Prosser City anaaer JDP:ds 7 6 C? CITY OF RICHFIELD, MINNESOTA • Council Letter No. 260 Agenda November 23, 1992 Issue Statement: Setting date of•public hearings for the renewal of wine licenses. Background: The wine licenses for restaurant establishments will expire on January 1, 1993. City ordinance provides that the City Council conduct a public hearing to consider all wine license renewals. Recommended Motion: Schedule December 14, 1992 as the date to hold public hearings on the renewal of wine licenses for Miller's Fireside Pizza; and Davanni's Pizza and Hot Hoagies. Basis for Recommendation: 1. Hearings must be scheduled and held before a renewal license may be considered. 2. The renewal process has been initiated. 3. Holding the public hearings on December 14 will provide ample time to complete the licensing process before January 1, 1993. • Alternative Recommendation: 1.. Schedule the hearings for another date. However, this may delay the licensing process. Discussion/Decision Mode: Action to schedule the public hearings on November 23, 1992 will provide sufficient time for legal publication of the hearings. y submitted, Jame MW Prosser City a ger JDP:ds L1 CITY OF RICHFIELD, MINNESOTA Council Letter No. 259 • Agenda November 23, 1992 Issue Statement: Adoption of resolution establishing just compensation and authorizing the purchase of 7646 Lyndale Avenue and certain Soo Line Railroad property. Background: The purchase of property at 7646 Lyndale Avenue is necessary to effectuate the proper design of the intersection of 77th Street and Lyndale Avenue. The building is occupied by the Lyndale Agency Inc., an insurance company and a resident. The insurance agency has already identified a location to which to relocate. The City also has a relocation responsibility to the residential tenant. The railroad property taking is a partial one; 30 feet in depth from the south right-of-way line of 77th Street (the existing 77th Street is only 30 feet wide at this location). In addition, there is a need for a temporary construction easement 22.5 feet wide adjacent to and south of the partial taking. Recommended Motion: Adopt the attached resolution which does the following: • 1. Sets just compensation for 7646 Lyndale Avenue at $115,000 plus $4,867 for the immovable fixtures. 2. Sets just compensation for the Soo Line partial taking at $9,000 and $400 for the temporary construction easement. 3. Authorizes the Mayor and City Manager to execute purchase agreements in the amounts of just compensation following plan approval by MnDOT and FHWA. Basis of Recommendation: 1. The property is needed for the 77th Street project. 2. MnDOT and FHWA procedures have been followed. 3. With MnDOT and FHWA approval project funds will be available. Alternative Recommendation: Delay action. Discussion/Decision Mode: Approval will permit acquisition and relocation activities to proceed in a timely fashion. Respe lly submitted, • James Prosser City M ager JDP:dkh 6P-1 RESOLUTION NO. THE CITY OF RICHFIELD, MINNESOTA RESOLUTION ESTABLISHING JUST COMPENSATION, AUTHORIZING PURCHASE OF REAL PROPERTY WHEREAS, the City of Richfield, Minnesota desires to purchase certain real property pursuant to and in furtherance of the 77th Street Project (Project) heretofore adopted by the City of Richfield (City) said real property being described as: Parcel No. 24A 7646 Lyndale Avenue, legally described as that part of Lot 7, "Glenn's Addition", lying between the south line of the north 28.3 feet of said Lot 7 and the north line of the south 30.9 feet of said Lot 7 according to the recorded plat thereof; and Parcel No. 35A Soo Line Railroad property, Partial taking (30 foot strip) legally described as: The north 30 feet of the west 66 feet of the east 91 feet of • the south half of the southwest quarter of the southwest quarter of section 34; township 28, range 24, Hennepin County, Minnesota. Temporary Construction Easement Over, under and across the south 22.5 feet of the north 52.5 feet of above said west 66 feet. WHEREAS, the City has adopted official plans for improvements to 77th Street; and WHEREAS, the improvements to 77th Street necessitate the purchase of real property; and WHEREAS, the City is authorized by Minnesota Statutes to acquire real property within its jurisdiction; and WHEREAS, Minnesota Department of Transportation (MnDOT) and Federal Highway Administration (FHWA) are funding this project and approval of the purchase of this property is anticipated; and WHEREAS, the City has caused appraisals of the subject property to be made by qualified independent professional real estate appraisers to determine fair market value; and • WHEREAS, a qualified review appraiser has certified the appraisal report as to conformity with appraisal standards and has certified same. NOW, THEREFORE, BE IT RESOLVED by the City Council of the . City of Richfield, Minnesota as.follows: 1. That just compensation is determined to be: $119,867 for 7646 Lyndale Avenue (Parcel 24A) $ 9,000 for fee ownership of Soo Line property (Parcel 35A) S 400 for a temporary construction easement on Soo Line property. 2. That the City Manager is authorized and directed to commence negotiations for the purchase of said real property following MnDOT and FHWA approval. 3. That the City Manager and Mayor are authorized to execute a purchase agreement for the amount of just compensation set forth in this resolution. 4. That the City Manager is hereby directed to notify, in writing, the owners of subject property as soon as possible that the City intends to acquire his/her property and establish eligibility for relocation benefits. Adopted by the City Council of the City of Richfield, • Minnesota this 23rd day of November, 1992. Martin J. Kirsch, Mayor ATTEST: Thomas P. Ferber, City Clerk L 3 CITY OF RICHFIELD, MINNESOTA • . Council Letter No-258 Agenda November 23, 1992 Issue Statement: Present the Silver Service Award-to Ms. Beth Herman at Richfield Bank and Trust Co., 6500 Lyndale Avenue; and an honorable mention award to Mr. James Miller, owner of Twin City Tire, 719 West 77? Street, for hiring seniors and disabled in Richfield. Background: The Silver ?Service Award was established in 1991 by the Richfield Human Services Commission Serving Seniors and Disabled to recognize those individuals/businesses in the community who have helped to make Richfield a better place by hiring seniors and disabled people. Commission members contacted managers of businesses within the City inquiring about their hiring practices,. Recommended Motion: Present the Silver Service Award to Ms. Beth Herman, Staffing and Compensation Administrator at Richfield Bank and Trust Co., and an honorable mention to Mr. James Miller, President of Twin City Tire Co. Basis of Recommendation: • 1. Ms. Herman has hired both elderly and disabled people to work for Richfield Bank and Trust Co. The bank works cooperatively with the Sister Kenny Institute in their hiring process. 2. Commission members were also impressed by James Miller, owner of Twin City Tire. One of the employees was injured in an accident and became disabled. The company restructured his position to keep him on the payroll. Alternative Recommendation: None. Discussion/Decision Mode: This item is scheduled for the November 23, 1992 Council meeting. lly submitted, Ja es. Prosser Ci v /natter JDP:ds 0