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08-21 Special CITY COUNCIL MEETING MINUTES Richfield, Minnesota Special City Council Meeting August 21, 2018 CALL TO ORDER The meeting was called to order by Mayor Elliott at 7:00 p.m. in the Council Chambers. Council Members Pat Elliott, Mayor; Maria Regan Gonzalez; Edwina Garcia; Simon Trautmann Present: and Michael Howard (arrived at 7:08 p.m.). Staff Present: Steven L. Devich, City Manager; Mary Tietjen, City Attorney; Pam Dmytrenko, Assistant City Manager/HR Manager; John Stark, Community Development Director; Julie Urban, Housing Manager; Russ Lupkes, Utilities Superintendent; Neil Ruhland, Media Coordinator; and Jared Voto, Executive Aide/Analyst. OPEN FORUM Chris Faint, 4815 Nicollet Avenue, Minneapolis, Richfield firefighter and Secretary of Firefighters Local 1215, spoke regarding Local 1215’s upcoming Fire Ops 101 event on Sunday, September 23, and invited city leaders to experience firsthand what fire fighters do on a daily basis. David Huss, 7028 Oak Grove Boulevard, spoke regarding concerns of the layout of the Lyndale Avenue reconstruction project and specifically a roundabout at 70th Street. He submitted letters to the City Council. Laurel Vasileiadis, 7020 Lyndale Avenue, spoke regarding opposition to the design of the Lyndale Avenue reconstruction project and negative impacts of the project. Pete Odegard, 7040 Oak Grove Boulevard, spoke regarding opposition to the design of Lyndale Avenue reconstruction project and roundabout at 70th and Lyndale. Bruce Anderson, 7052 Oak Grove Boulevard, thanked City Manager Devich for his service to the City of Richfield and spoke regarding opposition to a roundabout at 70th Street and Lyndale Avenue. Larry Koch, 471 Bighorn Drive, Chanhassen, and lawyer for Nola Wagner, spoke regarding opposition to the Lyndale Avenue reconstruction project and concern about his client’s access onto Lyndale Avenue near a roundabout at 70th Street. Mayor Elliott responded that staff will continue working on this with the residents. PLEDGE OF ALLEGIANCE Council Meeting Minutes -2- August 21, 2018 Mayor Elliott led the Pledge of Allegiance. APPROVAL OF MINUTES M/Howard, S/Regan Gonzalez to approve the minutes of the: (1) Special City Council work session of July 16, 2018; (2) Special concurrent City Council and Housing and Redevelopment Authority work session of July 16, 2018; (3) Special City Council work session of July 16, 2018; (4) Special City Council work session of July 24, 2018; (5) Special City Council work session of July 24, 2018; (6) Regular City Council meeting of July 24, 2018; and (7) Special City Council meeting of August 2, 2018. Motion carried 5-0. Item #1 COUNCIL DISCUSSION  Hats Off to Hometown Hits Council Member Regan Gonzalez spoke regarding youth advisory commissioners are being sought currently and invited youth to apply; and the 11th graders of Richfield High School were selected to attend a showing of the musical Hamilton and there is a GoFundMe page to help support the students and lower the cost of the tickets, search RHS Hamilton Field Trip to donate. Council Member Howard spoke regarding the great evening of Night to Unite; and the Governor’s Housing Task Force released their final report and the work Richfield has done on affordable housing. Mayor Elliott spoke regarding longtime Richfield resident Marc Jenkins’ being recently named a regents professor at the University of Minnesota and discussed his work in Richfield. Council Member Garcia spoke regarding September 4 is the first day of school and reminded people to be aware when driving; on August 22 Richfield Historical Society continues its series on the history of Richfield; the great night of Night to Unite; and recognized former council member Sue and Mike Sandahl in the audience. Council Member Trautmann spoke regarding Penn Fest on Sunday September 16 from 12-5 p.m. with entertainment and food trucks; and Wood Lake Nature Center’s Friends of Wood Lake membership drive is on-going and encouraged people to get a membership. Item #2 APPROVAL OF THE AGENDA M/Trautmann, S/Regan Gonzalez to approve the agenda. Motion carried 5-0. City Manager Devich stated that it was his understanding the Council had requested to remove Item D from the consent calendar and advised the Council to reapprove the agenda with this change. Council Meeting Minutes -3- August 21, 2018 M/Elliott, S/Trautmann to approve the agenda with Item 3.D. removed from the consent calendar. Motion carried 5-0. Item #3 CONSENT CALENDAR City Manager Devich presented the consent calendar. A. Consideration of the approval of Minnesota Department of Transportation lease agreement No. 27710 with Amendment #5 for continued use of excess land along I-494 next to the Best Buy Campus for a Metro Transit Park and Ride parking lot and transit station. (S.R. No. 131) B. Consideration of approval of the bid tabulation and award a contract to Visu-Sewer, Inc., for the 2018 Sanitary Sewer Rehabilitation Program in the amount of $368,904.20 and authorize the City Manager to approve contract changes under $100,000 without further City Council consideration. (S.R. No. 132) C. Consideration of the approval of the transfer of funds to close out the 76th Street West capital project fund. (S.R. No. 133) E. Consideration of the approval of a parking agreement with Kraus-Anderson Construction Company for non-exclusive use of the parking lot at Taft Park to park the personal vehicles of construction workers associated with the Chamberlain Housing Development. (S.R. No. 135) F. Consideration of the adoption of a resolution authorizing a three year interim use permit to allow temporary inventory storage of vehicles on a designated parking lot of the Church of St. Richard located at 7540 Penn Avenue. (S.R. No. 136) RESOLUTION NO. 11527 RESOLUTION APPROVING AN INTERIM USE PERMIT TO ALLOW TEMPORARY VEHICLE INVENTORY STORAGE AT 7540 PENN AVENUE SOUTH This resolution appears as Resolution No. 11527. G. Consideration of the approval of Subordination Agreements consenting to Environmental Covenants on Outlot B, Lyndale Garden Center redevelopment site (shoreline property). (S.R. No. 137) M/Elliott, S/Garcia to approve the consent calendar. Motion carried 5-0. Item #4 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM THE CONSENT CALENDAR D. Consideration of the approval of an Amendment to the Agreement for Management Services with Wheel Fun Rentals, LLC to continue management services for Malt-T-Melt Mini-Golf. (S.R. No. 134) Council Member Trautmann asked to table this item in order to have the ability to review the agreement. He stated questions about the term of the agreement. Council Meeting Minutes -4- August 21, 2018 City Manager Devich stated that staff would meet with Council Member Trautmann to answer his questions and gave additional information on the item. This item will be brought back the first meeting in September if there are no further questions. Item #5 PUBLIC HEARING AND CONSIDERATION OF THE APPROVAL OF RESOLUTIONS REGARDING THE MODIFICATION OF THE REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA, THE MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE CEDAR AVENUE TAX INCREMENT FINANCING DISTRICT, AND THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 2018-1. (S.R. NO. 138) Council Member Regan Gonzalez presented Staff Report No. 138. Council Member Regan Gonzalez commented there was a good discussion on this topic at the Housing and Redevelopment Authority meeting and asked staff to provide a summary of that discussion. Community Development Director Stark discussed the additional costs associated with noise attenuation and why a TIF district is needed to make the project work financially. He also discussed there are different types of TIF districts and a housing TIF district is more advantageous for this type of townhome project. Lastly, he discussed that some of the property isn’t paying property taxes currently and this development will bring immediate tax revenue to the City, County, and School District. Council Member Regan Gonzalez opened the public hearing. Alainna Samuelson, 7005 18th Avenue S, stated she is located in the TIF District and asked how her property taxes would be impacted. Community Development Director Stark responded that it won’t impact her property taxes; it only changes how her tax dollars are distributed after she pays her property taxes. M/Regan Gonzalez, S/Garcia to close the public hearing. Motion carried 5-0. Council Member Howard commented that this is a decade in the making and is excited that this is moving forward and adding value to our city. He stated there is a need for rental housing and this fills that need; however, he stated he wished a portion of the rental housing would be affordable. Mayor Elliott discussed the balancing of affordable and market rate townhomes and apartments. Council Member Regan Gonzalez reiterated the excitement that Richfield is becoming an area of opportunity for development and affordable housing opportunities. Council Member Trautmann agreed with the other Council Members and stated he appreciates affordable rental units but highlighted the opportunities when you own your home. M/Regan Gonzalez, S/Elliott to adopt a resolution adopting a modification to the Tax Increment Financing Plan for the Cedar Avenue Tax Increment Financing District within the Richfield Redevelopment Project Area. Council Meeting Minutes -5- August 21, 2018 RESOLUTION NO. 11528 RESOLUTION ADOPTING A MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE CEDAR AVENUE TAX INCREMENT FINANCING DISTRICT WITHIN THE RICHFIELD REDEVELOPMENT PROJECT AREA. Motion carried 5-0. This resolution appears as Resolution No. 11528. M/Regan Gonzalez, S/Elliott to adopt a resolution adopting a modification to the Redevelopment Plan for the Richfield Redevelopment Project Area and establishing Tax Increment Finance District No. 2018-1 therein and the adoption of the Tax Increment Financing Plan therefor. RESOLUTION NO. 11529 RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 2018-1 THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR. Motion carried 5-0. This resolution appears as Resolution No. 11529. Item #6 CONSIDERATION OF THE APPROVAL OF THE SECOND READING OF AN ORDINANCE AMENDING SECTION 300 OF THE CODE OF ORDINANCES FORMALLY ESTABLISHING A FINANCE DEPARTMENT AND DIRECTOR OF FINANCE POSITION WITHIN THE CITY ORGANIZATION AND AMENDING SUBSECTION 315.11 TO CLARIFY THE TITLE OF DIRECTOR. (S.R. NO. 139) Council Member Trautmann presented Staff Report No. 139. M/Trautmann, S/Howard to approve the second reading of an ordinance amending Section 300 of the Code of Ordinances formally establishing a Finance Department and Director of Finance position within the City organization and amending Subsection 315.11 to clarify the title of Director. Motion carried 5-0. Item #7 DISCUSSION REGARDING CITY COUNCIL ATTENDANCE AT THE 2018 NATIONAL LEAGUE OF CITIES CITY SUMMIT CONFERENCE NOVEMBER 7- 10 IN LOS ANGELES, CALIFORNIA. (S.R. NO. 140) Mayor Garcia presented Staff Report No. 140. Council Members discussed their interest in attending the conference. Council Member Trautmann stated he would be interested in attending another conference held by the National League of Cities in Washington, D.C. Council Member Garcia stated she might be available and would know in a couple weeks. It will be brought to another meeting. Council Meeting Minutes -6- August 21,2018 M/Elliott, S/Regan Gonzalez to designate Council Member Trautmann to attend the 2018 HELO Annual Leadership Retreat on September 10-12, 2018 in Washington, D.C. Item #8 CITY MANAGER'S REPORT City Manager Devich stated he had nothing to report. Item #9 CLAIMS AND PAYROLLS M/Garcia, S/Elliott that the following claims and payrolls be approved: U.S. Bank 08/14/18 A/P Checks: 270021 - 270518 $ 2,414,199.76 Payroll: 138179 - 138935; 42805 -42806 1,361,481.19 TOTAL $ 3,775,680.95 Motion carried 5-0. OPEN FORUM None. Item #10 ADJOURNMENT The meeting was adjourned by unanimous consent at 8:14 p.m. Date Approved: September 11, 2018 rP.t,01 ott""7"."1' 26/ A 4111)..., Jared Voto - -n L. Devich Executive Aide/Analyst City anager