06-09-09 WorksessionJ
CITY COUNCIL MINUTES
Richfield, Minnesota
Special Worksession
June 9, 2009
CALL TO ORDER
The meeting was called to order by Mayor Goettel at 5:30 p.m.
ROLL CALL
Members Present: Debbie Goettel, Mayor; Sue Sandahl; Pat Elliott; Fred Wroge; and Tom
Fitzhenry.
Staff Present: Steven Devich, City Manager; John Stark, Community Development Director;
Jim Topitzhofer, Recreation Services Director; Brad Sveum, Fire Services
Director; Bill Fillmore, Municipal Liquor Operations Director; Chris Regis,.
Finance Manager; Kristin Asher, City Engineer; Corrine Heine, City Attorney;
and Cheryl Krumholz, Recording Secretary.
Item # 1 DISCUSSION REGARDING RESIDENTIAL GARBAGE COLLECTION OPTIONS
(MEMO NO. 95)
City Manager Devich stated in response to a citizen inquiry in early summer 2008, the City
Council requested City staff investigate the possible options available for garbage collection service in
the City of Richfield. Under Minnesota Statutes 115A.94 Subd. (3), cities have several options with
respect to organized garbage collection. However, as a matter of practice, except for city-staffed
collection, there are three major models that cities tend to follow with respect to the organized
collection of garbage and refuse.
City Manager Devich explained the three major models:
• Collection of garbage by City licensed contractors (open hauling).
o This is the model that Richfield currently uses, as well as most other cities.
• City garbage collection franchise/contract agreement.
o -Few metro cities use this model.
• City garbage collection.
o This is the St. Louis Park model.
City Manager Devich discussed:
• Cost of services issues
• Community impacts
• Staffing considerations
City Manager Devich concluded that it is staff's recommendation that the City of Richfield
continue with the Open Hauling system for now. If there is consideration to move to another model in
the future, staff would recommend that the City Council give strong consideration to the city-wide
collection system employed by St. Louis Park. The St. Louis Park model would allow the
establishment of an enterprise fund to cover the costs and revenues of the system. That system
would provide a savings for Richfield residents and pay for all of the associated City costs.
Special Worksession Minutes -2-
June 9, 2009
City Manager Devich cautioned the City Council this could be a volatile topic in the community.
The first step in the process would be to conduct open informational meetings to obtain feedback
from the public.
City Manager Devich discussed Richfield's Clean-Up Day (drop-off only) and its associated
costs and reduced participation last year.
Council Member Wroge suggested a hybrid franchise/contract agreement option, including a
bidding process to prevent a monopoly on the City, separating the City into the three wards, three
year pricing rates, City costs only to set-up the program but the hauler operates the program, the
hauler responds to residents' issues. He suggested Richfield's Clean-Up Day be similar to
Bloomington's program and administered like the franchise fees by charging each resident $1 per
month because the participation may be more successful if it's apick-up rather than only drop-off.
Council Member Wroge concluded that residents may save money and be an environmentally
green approach if a different collection program is implemented.
Council Member Sandahl stated there may be benefits and cost savings with a different
hauling process. She said there could be possible cost differences inwards which could be an issue.
Council Member Elliott expressed concerns regarding three separate bids for three separate
wards and impacts on the operation of small business. He added that reality is residents will call the
City with complaints and issues.
City Attorney Heine stated there is a required process under the law for organized collection
including a thorough study of alternatives related to the costs for service, data collection, and public
hearings.
Council Member Fitzhenry suggested the Minneapolis program be considered because it is
like a continuous Clean-Up Day. He asked about each resident being required to have a garbage
hauler.
City Attorney Heine stated some cities have an ordinance requiring each household to have
garbage collection, unless the property owner could provide proof of another disposal option.
The City Council consensus was to direct staff to continue exploring organized collection
options using the franchise model and return to them for additional discussion in 2010.
Council Member Wroge said with City staff and two trucks, the residents may get a reduced
price and the City would see a positive revenue.
City Manager Devich stated that he did not believe the City could compete with professional
garbage hauler costs.
Item #2 DISCUSSION REGARDING CITY OF RICHFIELD KEY FINANCIAL STRATEGIES
(COUNCIL MEMO NO. 96)
Finance Manager Regis reviewed the annual Key Financial Strategies Plan, 2009-2017.
City Manager Devich discussed the City reductions already in place to hopefully fill the void
due to potentially reduced Local Government Aid (LGA) allocations.
Finance Manager Regis discussed the debt/special levy from the capital financing plan, the
percentage increase of the certified levy, percentage tax increases, debt service on bonds, property
value impacts, and ILN TIF District expiration. He said the levy increase is trying to be kept in the
single digits but it depends upon LGA and needs to be a balanced approach to address the impacts
on residents.
Special Worksession Minutes -3- June 9, 2009
City Manager Devich explained the projects in the Key Financial Strategies are those
expected to be paid for by residents and is subject to change.
Finance Manager Regis reviewed future bonded indebtedness.
Council Member Elliott suggested involving residents in the process related to budget
hardships so there is a better understanding.
City Manager Devich discussed potential staffing levels of the Fire Department due to two
upcoming retirements to be considered by the City Council in the near future.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 6:30 p.m.
Date Approved: .r„np 2 _ 2009
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