07-28-09 RegularCITY COUNCIL MEETING MINUTES
~ Richfield, Minnesota
Regular Meeting
July 28, 2009
CALL TO ORDER
. The meeting was called to order by Mayor Goettel at 7:00 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; Chris Regis, Finance Manager; Chris Link, Street
Maintenance Supervisor; Pam Dmytrenko, Assistant to the City Manager;
Corrine Heine, City Attorney; and Cheryl Krumholz, Recording Secretary.
OPEN FORUM
Kamm Modrynski, 220 East 66th Street, spoke about problems he has experienced with
permits and inspections and that he is unable to receive foreclosure financial assistance.
PRESENTATION OF COLORS AND PLEDGE OF ALLEGIANCE
Mayor Goettel led the audience in the Pledge of Allegiance.
APPROVAL OF MINUTES
M/Sandahl, S/Wroge to approve the minutes of (1) Special City Council Worksession of
July 14 2009 (2) Regular City Council Meeting of July 14, 2009; and (3) Special City Council
Worksession of July 20, 2009.
Council Meeting Minutes -2-
Motion carried 5-0.
July 28, 2009
Item #1 CONSIDERATION OF RESOLUTION ACCEPTING $1000 GRANT FROM
SAM'S CLUB FOUNDATION TO RICHFIELD FIRE SERVICES DEPARTMENT
S.R. NO. 141
Mayor Goettel presented Staff Report No. 141.
M/Goettel, S/Sandahl that the following resolution be adopted and that it be made part of
these minutes:
RESOLUTION NO. 10265
RESOLUTION AUTHORIZING ACCEPTANCE OF DONATION BY THE
SAM'S CLUB FOUNDATION COMMUNITY GRANTS PROGRAM TO
THE CITY OF RICHFIELD FIRE DEPARTMENT IN ACCORDANCE
WITH THE TERMS PRESCRIBED BY THE DONORS
Motion carried 5-0. This resolution appears as Resolution No. 10265.
Item #2 CONSIDERATION OF RESOLUTION AUTHORIZING PUBLIC SAFETY
DEPARTMENT/POLICE DIVISION TO ACCEPT MONETARY DONATIONS
FOR SAFETY DAY 2009 AND 2010 S.R. NO. 142
Mayor Goettel presented Staff Report No. 142.
M/Goettel, S/Sandahl that the following resolution be adopted and that it be made part of
these minutes:
RESOLUTION NO. 10266
RESOLUTION AUTHORIZING RICHFIELD PUBLIC SAFETY/POLICE
DEPARTMENT TO ACCEPT MONETARY DONATIONS FOR SAFETY DAY
2009 AND PREPARATION FOR 2010
Motion carried 5-0. This resolution appears as Resolution No. 10266.
Item #3 COUNCIL DISCUSSION
• UPDATE REGARDING NEIGHBORHOOD INSPECTION PROGRAM
• HATS OFF TO HOMETOWN HITS
Council Member Elliott announced the second annual PennFest on August 9.
Council Member Sandahl announced the Night to Unite (formerly National Night Out) on
August 4.
Council Meeting Minutes -3-
July 28, 2009
Council Member Fitzhenry announced the Urban Wildland 5K and Marathon race on
August 1.
Recreation Services Director Topitzhofer discussed the closure of the trail along the north
side of Veterans Park to allow construction of an improved amenity of a pedestrian bridge resulting
from the Mn/DOT Crosstown project.
Mayor Goettel stated GSA is looking for a business space to rent in the 494/169,
Crosstown/77th Avenue area.
Mayor Goettel reported on the Regional Council of Mayors initiatives of the Green Step
Cities sustainability grants and potential ordinances for environmental studies for developers in lieu
of the Comprehensive Plan.
Public Safety Director Fritz provided an update on the Neighborhood Inspection Program.
Item #4 COUNCIL APPROVAL OF AGENDA
Mayor Goettel requested the agenda be amended to consider an offer to sell the City the
land located at 6754 Portland Avenue.
City Manager Devich stated there are audio upgrades underway for the Council Chambers.
M/Wroge, S/Sandahl to approve the agenda as amended.
Motion carried 5-0.
Item #5 CONSENT CALENDAR
A. Consideration of approval of first reading of ordinance modifying electric franchise fee on
Northern States Power dba Xcel Energy for providing electric service within City of Richfield
and scheduling public hearing and second reading for August 11, 2009 S.R. No. 143
B. Consideration of approval of first reading of ordnance modifying gas franchise fee on
CenterPoint Energy for providing gas service within City of Richfield and scheduling public
hearing and second reading for August 11, 2009 S.R. No. 144
C. Consideration of approval of first reading of ordinance amendment to City Administrative
Code Chapter 1, Subsection 100.07 adopting reference to Minnesota Statutes and Rules and
scheduling second reading for August 11, 2009 S.R. No. 145
D. Consideration of approval of contract change order #1 for additional tree removal in amount
of $19,151 and change order #2 for frost footings under concession stoop in amount of
$2,719.20 for Lincoln Athletic Complex S.R. No. 146
E. Consideration of approval of authorizing Joint Powers Agreement between City of Richfield
and Regional All-Hazards Incident Management Organization S.R. No. 147
F. Consideration of approval of issuance of new on-sale wine and 3.2 percent malt liquor
licenses for Lariat Lanes, 6320 Penn Avenue S.R. No. 148
G. Consideration of approval of temporary on-sale 3.2 percent malt liquor and public dance
licenses for The Church of the Assumption annual Fun Fiesta on August 16, 2009 S.R. No.
149
Council Meeting Minutes -4-
M/Sandahl, S/Wroge to approve the Consent Calendar.
Motion carried 5-0.
July 28, 2009
Item #6 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT
CALENDAR
None.
Item #7 CONSIDERATION OF RESOLUTION AUTHORIZING OPTION AGREEMENT WITH
ACCESSIBLE SPACE INC. FOR REDEVELOPMENT OF 7700 PILLSBURY
AVENUE, SOUTH PORTION OF FORMER PUBLIC WORKS FACILITY SITE
S.R. NO. 150
Council Member Elliott presented Staff Report No. 150.
Council Member Elliott asked how the appraisal was determined for this parcel.
Community Development Director Stark explained the blended numbers from the shadow
value and appraised value.
Rebecca Kurtz, Ehlers & Associates, explained the present value determination and tax
increment financing revenue stream.
Council Member Elliott suggested the option agreement include an initial payment amount
to reimburse for staff time spent on this project. He also asked about the HUD funding timeline.
Dan Bilmark, ASi, explained the anticipated HUD timeframe.
Council Member Elliott questioned who was responsible for paying real estate taxes in
interim of transferring ownership.
City Attorney Heine explained the payment of real estate taxes.
Council Member Wroge stated the resolution should be changed to indicate Richfield is in
Hennepin, not Ramsey, County and the word "substantially" should be removed from Item 2
related to the Mayor and City Manager executing an agreement because the option agreement
should be returned to the City Council for consideration if there are any changes.
City Manager Devich explained the tax capacity rate.
Community Development Director Stark explained the land use requirements and setback
have been analyzed and in staff's opinion, multi-family use was the best.
City Attorney Heine clarified the payment of real estate taxes is addressed in the option
agreement.
Council Meeting Minutes -5- July 28, 2009
Council Member Wroge questioned the changing of the Comprehensive Plan for one
development could mean changing it for another.
Community Development Director Stark explained the required Comprehensive Plan and/or
zoning changes needed for this parcel.
Council Member Wroge stated this was a good development but the City could possibly do
better with not taking the first developer to express interest.
City Manager Devich stated the City Council should decide:
• Whether they want to proceed with selling the property now pending the HUD
funding, or keep the parcel on the market to possibly get more money with a
different use.
• To move ahead but refine the option agreement and conduct an appraisal which
could take two months.
• Include a provision in the agreement to recover administrative costs.
• Include timeframes in the option agreement, which are dictated by HUD.
City Manager Devich continued that ASi needs this portion of the option agreement in place
or they are unable to proceed with the HUD funding application.
Council Member Sandahl expressed support for the agreement because it is a good project
with laudable goal of affordable housing and administered properly. She agreed that the
agreement should include a cost to cover staff time and that she had no issue with "substantially"
remaining in the resolution because she trusted the judgment of the Mayor and City Manager.
Council Member Fitzhenry agreed with Council Member Sandahl and added that
developing this parcel may increase the value of other sites.
Council Member Wroge expressed concern of the delay from TIF in the ability to re-pay the
new garage bond debt.
Ms. Kurtz explained the tax increment will be used to pay back debt service.
Mayor Goettel stated the project is a good benefit to community but does not put the City in
the best position to repay debt on the garage.
Council Member Elliott clarified the word "substantially" is subject to definition, not a trust
issue. He added that he was not going to bet on the future of commercial development properties
in these economic times, and would support this project.
M/Sandahl, S/Fitzhenry that the following resolution be adopted and that it be made part of
these minutes and to determine staff time and include for reimbursement in the option agreement,
to confirm the language on pro-rated real estate taxes with payment as the buyer's responsibility.
and to allow the Mayor and City Manager to execute a revised option agreement:
RESOLUTION NO. 10267
RESOLUTION AUTHORIZING OPTION AGREEMENT
Motion carried 4-1. (Wroge oppose) This resolution appears as Resolution No. 10267.
Council Meeting Minutes -6- July 28, 2009
Item #8 CONSIDERATION OF PLACEMENT OF PERMANENT BARRIERS ON 64TH AND
65TH STREETS AT RICHFIELD PARKWAY (17TH AVENUE) FOR
NEIGHBORHOOD WEST OF CEDAR POINT S.R. NO. 151
Council Member Fitzhenry presented Staff Report No. 151.
Andy Hartle, 6332 - 17th Avenue, stated there would be increased traffic and noise on 17th
Avenue if the barriers are installed. He added that if truck traffic is to be on the road around Taft
Park, that road will be destroyed.
The City Council requested traffic counts be conducted to determine traffic impacts on other
residents in this area from the barriers and/or an unsafe hazard is created so the City Council can
revisit this issue if necessary.
Council Member Wroge suggested posting truck limits on 17th Avenue to force, trucks
around Taft Park.
City Manager Devich stated staff will review the developer's-agreement regarding truck
traffic. He said he met with Home Depot regarding the residents' concerns.
M/Fitzhenry, S/Goettel to approve placement of permanent barriers on 64th and 65th
Streets at Richfield Parkway (17th Avenue) for neighborhood west of Cedar Point.
Motion carried 5-0.
Item #9 CONSIDERATION OF STREET LIGHT USER IMPLEMENTATION SCHEDULE
PLAN AND SCHEDULE PUBLIC HEARING ON SEPTEMBER 8, 2009
S.R. NO. 152
Council Member Sandahl presented Staff Report No. 152.
Public Works Director Eastling explained the residential and commercial-fee based upon
area. The exception when this fee was in place in 1995 was that the church and school properties
fees were reduced to 25% of the rate because there are no City streets or lights on the. property.
Mayor Goettel questioned lights on Xerxes Avenue from 66th Street to Crosstown.
Public Works Director Eastling responded he would. check this. He said apartment
buildings are charged as commercial properties. No public hearing on imposing the fee is
required, only a resolution.
Council Member Wroge stated the fee proposed is not adequate to cover the cost of the
street light electricity: He added his belief that this fee should be part of property taxes.
City Manager Devich explained how he determined the rate based upon the consideration
of balancing revenues and trying to keep the tax levy lower than double digits. The 2010 budget
includes revenue form the street light fee.
Council Meeting Minutes -7- July 28, 2009
The City Council consensus was to implement a street light user fee adequate to cover
electric costs.
M/Sandahl, S/Fitzhenry to approve street light user implementation schedule plan and
schedule public hearing on September 8, 2009.
Motion carried 5-0.
Item #10 CONSIDERATION OF DESIGN DEVELOPMENT PHASE FOR NEW
POLICE/FIRE/CITY HALL FACILITY S.R. NO. 153
Council Member Wroge presented Staff Report No. 153.
Mike Klass, Wold Architects, reviewed the design development.
Mike Cox, Wold Architects, reviewed the budget and construction schedule.
Mayor Goettel asked about Orfield Laboratories working on the Council Chambers
acoustics.
City Manager Devich responded the original Orfield contract was for design standards for
City Hall and did not include work on the Council Chambers. The Orfield proposal included design,
acoustics, and visual work for $100,000 and the City Council declined.
City Manager Devich added the City Council will also need to make decisions on energy
conservation measures after reviewing the "White Paper."
The City Council consensus was to consider the Orfield proposal at a future City Council
meeting.
M/Wroge, S/Elliot to approve design development phase for new Police/Fire/City Hall
facilit .
Motion carried 5-0.
Item #11 CITY MANAGER'S REPORT
Public Works Director Eastling discussed the Metro Sewer Project and Three Rivers Park
Regional Trail along 76th Street and the intended construction of a multi-use path as a continuous
path for reasons of ride quality, safety, and maintenance. Residents along the path will receive a
letter clarifying the City's intent on constructing the asphalt path.
Council Member Sandahl added that the asphalt is in City right-of-way.
Public Works Director Eastling stated that Three Rivers would be responsible for
maintenance and repair of the path and the City would monitor.
The City Council consensus was to proceed with the asphalt path.
Council Meeting Minutes -8- July 28, 2009
Item #12 CLAIMS AND PAYROLL
M/Sandahl, S/Wroge that the following claims and payrolls be approved:
U.S. BANK 07-28-09
A/P Checks: 187301 - 187642
PAYROLL 59556 - 59926,41452 - 41453
TOTAL
Motion carried 5-0.
OPEN FORUM
None.
$ 1,058,252.42
$ 544,953.97
$ 1,603,206.39
City Attorney Heine stated the City is in negotiations for the purchase of 6754 Portland
Avenue and staff is seeking direction. The Open Meeting Law ,permits, but does not require, the
City Council to go into closed session to discuss these negotiations. Staff recommends a closed
session and not returning to open session but rather adjourn from the closed session.
By unanimous consent the City Council left the Council Chambers at 9:41 p.m. to conduct a
Closed Executive Session in the Executive Conference Room.
Item #13 SPECIAL CITY COUNCIL CLOSED EXECUTIVE SESSION IN EXECUTIVE
CONFERENCE ROOM REGARDING NEGOTIATIONS FOR THE PURCHASE OF
6754 PORTLAND AVENUE
The Closed Executive Session was called to order by Mayor Goettel in the Executive
Conference Room at 9:44 p.m.
Members Present: Debbie Goettel, Mayor; Sue Sandahl; Pat Elliott; Fred Wroge; and Tom
Fitzhenry.
Staff Present: Steven L. Devich, City Manager; John Stark, Community Development
Director; Corrine Heine, City Attorney; and Cheryl Krumholz, Recording
Secretary.
The Closed Executive Session was convened pursuant to M.S. 13D.05.
The City Council meeting was adjourned by unanimous consent at 10:13 p.m.
Council Meeting Minutes
Date Approved: August ii, 2009
Cheryl Kr hol
Recording Secretary
-9-
July 28, 2009
City Manager