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05-12-2020 Complete AgendaREGULAR CITY COUNCIL MEETING VIRTUAL MEETING HELD VIA WEBEX MAY 12, 2020 7:00 PM INTRODUCTORY PROCEEDINGS Call to order Pledge of Allegiance Open forum Each speaker is to keep their comment period to three minutes to allow sufficient time for others. Comments are to be an opportunity to address the Council on items not on the agenda. Individuals who wish to address the Council must have submitted comments to kwynn@richfieldmn.gov prior to the meeting. Approve the minutes of the (1) City Council Work Session of April 28, 2020; and (2) City Council Meeting of April 28, 2020. PRESENTATIONS 1. Equity in the time of COVID-19 Pandemic Proclamation AGENDA APPROVAL 2.Approval of the Agenda 3.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 on these items 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. A.Consider adoption of a resolution authorizing the City to affirm the monetary limits on statutory municipality tort liability. Staff Report No. 58 4.Consideration of items, if any, removed from Consent Calendar PROPOSED ORDINANCES 5.Consider approval of a first reading of an ordinance creating an Affordable Housing Trust Fund. Staff Report No. 59 RESOLUTIONS 6.Consider adoption of a resolution granting an extension of land use approvals for a planned unit development at 101 66th S treet E ast (The E mi). S taff Report No. 60 C IT Y MAN AG E R’S R E P O R T 7.C ity Manager's Report C LAIMS AN D PAYR O L LS 8.C laims and P ayroll C O U N C IL D ISC U SSIO N 9.Hats Off to Hometown Hits 10.A djournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9738. CITY COUNCIL MEETING MINUTES Richfield, Minnesota City Council Work Session Virtual Meeting held via WebEx April 28, 2020 CALL TO ORDER The meeting was called to order by Mayor Regan Gonzalez at 5:49 p.m. held via WebEx. Council Members Maria Regan Gonzalez, Mayor; Mary Supple; Simon Trautmann; Present: and Ben Whalen. Council Members Edwina Garcia Absent: Staff Present: Katie Rodriguez, City Manager; Blanca Martinez Gavina, Executive Analyst; and Kelly Wynn, Senior Office Assistant ITEM #1 STRATEGIC PLANNING UPDATE City Manager Rodriguez gave a brief update regarding Strategic Planning. A meeting will be set up in May to compile ideas for goal setting. Due to the pandemic, Strategic Planning itself will be postponed until 2021. ITEM #2 REVIEW OF COMMUNITY SURVEY RESULTS City Manager Rodriguez provided background information on why the survey was conducted. The City was able to hear from residents, see benchmarking against peers, demographic differences and actionable data. She then discussed the methodology of the randomized survey that included a mailing of 2,500 surveys with 566 returned. There was also an online opt-in survey that had 107 residents respond. City Manager Rodriguez then provided results of how livability in Richfield compares well nationally. Overall, residents like living in Richfield. It is a desirable place to live with safety as a feature that contributes to quality of life. Residents applaud mobility in Richfield and are very pleased with the Parks and Recreation Department. City Manager Rodriguez then presented results of areas in Richfield that compared well but received lower marks such as vibrancy of commercial areas; cost of living; availability of quality affordable housing and mental health care; opportunities for education, culture and the arts; residents connection and engagement with their community. City Manager Rodriguez discussed a summary of Minnesota benchmark results by relative percent positive rating. Areas Richfield scored higher than MN peers were public transportation, ease Special City Council Meeting Minutes -2- April 28, 2020 of bike travel, snow removal and drinking water. Two areas Richfield scored lower than MN peers were overall opportunities for education, culture and the arts and K-12 education. She also reported areas that ranked in the top third of MN benchmark by relative rank such as overall confidence in Richfield government, overall direction that Richfield is taking, treating all residents fairly, quality and vibrancy of businesses, employment opportunities and more. City Manager Rodriguez presented demographic analysis regarding livability and governance. Results showed people of color (POC) ranked positive image and reputation slightly higher while homeowners and residents in detached homes were more likely to stay in Richfield. However, POC gave lower marks to customer service. Also, older residents reported having more confidence in government while younger residents like the direction of the City better. As well as customer service ratings for POC were sixteen points lower than white residents and males felt most respected. Mayor Regan Gonzalez stated it is concerning to see and is problematic. She spoke of how more research needs to be done around affordable housing and action needs to come out of the research. Council Member Supple spoke of how sixteen points regarding customer service is a significant spread. City Manager Rodriguez explained how equity is a major priority. The work is slow but action is being taken to diversify the work force. Several steps have been taken including joining multiple groups to promote equity and the City will continue its work to improve. Mayor Regan Gonzalez spoke of the customer service aspect and how everyone should look at how the City can do better as a whole to provide for all residents in being helpful and respectful. City Manager Rodriguez explained how all department directors have the information regarding the survey as well. She went on to state that customer service ratings are high but there is a discrepancy. Council Member Trautmann asked for clarification on what POC rating positive image and reputation slightly higher meant. City Manager Rodriguez explained how the information is compiled and broken down by demographic sub groups and will show if a certain community demographic is rating something higher. POC rated Richfield’s positive image and reputation slightly higher than white people. Council Member Trautmann echoed the thoughts of other council members in that equity is urgent and perpetual. He appreciates how staff is making great strides. Council Member Supple asked about the result of residents more likely to stay. City Manager Rodriguez clarified the question in the survey regarded living in Richfield in the next five years. City Manager Rodriguez then spoke of results regarding economy; mobility; community design; utilities; safety; natural environment and parks/recreation; health/wellness; education, arts and culture; inclusivity and engagement. Council Member Whalen explained how some information is not surprising. As a white person, it may not be known how other groups are not made welcome. There is definitely more work to do to become equitable. He spoke of how important it is to hear from the groups that are not feeling included and welcomed in order to determine solutions. Special City Council Meeting Minutes -3- April 28, 2020 City Manager Rodriguez agreed with Council Member Whalen and spoke of how it has become a very important goal of City board and commissions to help. She then went on to discuss demographic analysis of participation and online engagement and preference for sources of information. Council Member Supple was curious to the result of residents 55 years and older as well as POC were more likely to campaign. City Manager Rodriguez explained it was to campaign for an issue or candidate. City Manager Rodriguez continued on to touch on demographic analysis concerning community focus area and the customized questions. The customized questions resulted in supporting what employees have already heard from residents. She briefly spoke of the online survey results even though they were not statistically valid. Unfortunately, the responses were generally less positive. City Manager Rodriguez then summarized some key takeaways from the survey in that Richfield does well compared to peers; the strengths line up well with values and areas of improvement correspond with priorities; residents want a focus on safety, economic health, parks and recreation along with the natural environment; and demographic differences demonstrate a need for more equitable service delivery. Council Member Whalen commented on the need to name things during the goal setting meeting that came out of the survey. He asked to have clear action steps bulleted in response to the needs of the survey. City Manager Rodriguez said staff can absolutely make that happen. She also stated how this survey provided a lot of good news for the City. There is something for each department to be proud of regarding the results. She also gave praise to Communications and Engagement Manager, Neil Ruhland, in all his efforts. She then stated how Council should be very proud of their work. There is data to be used and department directors will be able to utilize this survey as one more tool. Council Member Supple commented on how people don’t always know what they don’t know and to pay attention to results and fix things such as customer service Mayor Regan Gonzalez thanked City Manager Rodriguez for sharing all the information and commended her on the positive results. She spoke of being able to share these results with business, non-profit organizations, and education partners to become a more robust City. She commented on how people are happy and the City should build on that aspect. Mayor Regan Gonzalez also stated how equity is their work and everyone should push to grow abilities and deliver core services in a variety of ways. Council Member Whalen thanked all staff involved. He pointed out how there is a lot of positives to take away from the survey. He then gave a special call out to the Public Works Department. Mayor Regan Gonzalez described how fortunate the residents of Richfield are to have such great leadership. Especially in a time of crisis, all people and groups are coming together. Council Member Trautmann asked about a frequency of the survey and if it will be an annual item. City Manager Rodriguez explained it is an expensive undertaking so most likely it will be done every two to three years. Council Member Supple asked about the results of the COVID-19 survey that was distributed. City Manager Rodriguez spoke of the great response rate. The results are being compiled now and should be ready in the next couple weeks. Special City Council Meeting Minutes -4- April 28, 2020 ADJOURNMENT The meeting was adjourned by unanimous consent at 6:35 p.m. Date Approved: May 12, 2020 Maria Regan Gonzalez Mayor Kelly Wynn Katie Rodriguez Senior Office Assistant City Manager CALL TO ORDER The meeting was called to order by Mayor Maria Regan Gonzalez at 7:01 p.m. via WebEx. Council Members Maria Regan Gonzalez, Mayor; Mary Supple; Ben Whalen; Edwina Garcia; and Present: Simon Trautmann Staff Present: Katie Rodriguez, City Manager; Mary Tietjen, City Attorney; Chris Regis, Finance Director; Amy Markle, Recreation Services Director; Kristin Asher, Public Works Director; Julie Urban, Housing Manager; Jane Skov, IT Manager; Blanca Martinez Gavina, Executive Analyst; and Kelly Wynn, Senior Office Assistant Others Present: Rebecca Kurtz with Ehlers Inc.; and Adam Seraphine, President of NHH Properties OPEN FORUM No speakers PLEDGE OF ALLEGIANCE Mayor Regan Gonzalez led the Pledge of Allegiance APPROVAL OF MINUTES M/Whalen, S/Supple to approve the minutes of the (1) City Council Meeting of April 14, 2020. Executive Analyst Martinez Gavina took roll call vote: Regan Gonzalez: AYE Supple: AYE Trautmann: AYE Garcia: AYE Whalen: AYE Motion carried 5-0 CITY COUNCIL MEETING MINUTES Richfield, Minnesota Regular Council Meeting Virtual Meeting held via WebEx April 28, 2020 Council Meeting Minutes -2- April 28, 2020 Item #1 MOMENT OF SILENCE A moment of silence was taken to celebrate the life of Margarita Trautmann, the dear mother of Council Member Trautmann. Council Member Trautmann thanked all who have reached out with condolences. He then gave a touching background of her life and how grateful he was to have her as a mother. Council Member Garcia spoke of how losing a mother is incredibly difficult. Missing her will be a daily battle but over time, the days will get easier and it will turn into reflection of all the good memories. She expressed that her heart goes out to Council Member Trautmann and his family. Council Member Supple conveyed condolences and thanked Council Member Trautmann for sharing the wonderful story of his mother’s life. Council Member Whalen expressed his sympathy for Council Member Trautmann. He appreciated how Council Member Trautmann celebrated the life of his mother and a life well lived. Mayor Regan Gonzalez echoed condolences and thanked Council Member Trautmann for sharing his mother’s story. Council Member Trautmann thanked everyone and shared a story about his son. Item #2 PRESENTATION OF THE PROCLAMATION OBSERVING EARTH DAY, ARBOR DAY AND ARBOR MONTH Director Markle spoke of the things done in observance of Earth Day and the different things offered virtually. To observe Arbor Day, the department will be planting trees when staff is able. Mayor Regan Gonzalez recognized the Parks and Recreation Department for engaging residents in all kinds of ways during this time. They have made it apparent that Mother Nature is still out there for residents to admire every day. She then read the proclamation. She commented on how she has been seeing children picking up trash at parks while they are out on walks and thanked all the young residents. Item #3 APPROVAL OF THE AGENDA M/Trautmann, S/Whalen to approve the agenda Executive Analyst Martinez Gavina took roll call vote: Regan Gonzalez: AYE Supple: AYE Trautmann: AYE Garcia: AYE Whalen: AYE Motion carried 5-0 Council Meeting Minutes -3- April 28, 2020 Item #4 CONSENT CALENDAR City Manager Rodriguez presented the consent calendar. A. Consider the approval of a resolution that includes a declaration of restrictive covenants for the Seven Hills Preparatory Academy playground in the City of Richfield. In conjunction with the agreement, also consider approval of the Hennepin County Sports Program Playground Application that will be submitted in partnership with the school. The City of Richfield would act as the LGU for the local charter school (Staff Report No. 52). RESOLUTION NO. 11733 RESOLUTION APPROVING A DECLARATION OF RESTRICTIVE COVENANTS FOR THE SEVEN HILLS PREPARATORY ACADEMY PLAYGROUND IN THE CITY OF RICHFIELD B. Consider the adoption of a resolution supporting a Livable Communities Demonstration Act Pre-Development grant application to the Metropolitan Council to support the redevelopment of 6501 Penn Avenue South (Staff Report No. 53). RESOLUTION NO. 11734 RESOLUTION IDENTIFYING THE NEED FOR LIVABLE COMMUNITIES DEMONSTRATION ACCOUNT (“LCDA”) FUNDING AND AUTHORIZING AN APPLICATION FOR GRANT FUNDS C. Consider the adoption of a resolution approving the Statewide Public Works Joint Powers Mutual Aid Agreement and Equipment Sharing Agreement (Staff Report No. 54). RESOLUTION NO. 11735 RESOLUTION Approving the Statewide Public Works Joint Powers Mutual Aid Agreement and Equipment Sharing Agreement M/Garcia, S/Supple to approve the consent calendar. Council Member Garcia appreciates that Partnership Academy was supporting Seven Hills in this project and is thankful that people can work together. Council Member Supple stated how she was happy to see the sharing of resources and using the taxpayer dollars to the best of its ability. Council Member Trautmann thanked all staff for supporting the grant opportunities and initiatives. Executive Analyst Martinez Gavina took roll call vote: Regan Gonzalez: AYE Supple: AYE Trautmann: AYE Garcia: AYE Whalen: AYE Motion carried 5-0 Council Meeting Minutes -4- April 28, 2020 Item #5 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT CALENDAR None Item #6 PUBLIC HEARING AND CONSIDER A RESOLUTION APPROVING A FINAL PLAT OF THE RF64 TOWNHOMES ADDITION, RELATED TO THE COMPLETION OF A PORTION OF THE RF64 DEVELOPMENT AT 65TH STREET AND 16TH AVENUE (STAFF REPORT NO. 55) Council Member Whalen presented staff report 55. Director Stark explained the resolution is for eight townhomes currently under construction, a shared driveway, storm water use, and possibly more townhomes. Mayor Regan Gonzalez commented on the great quality and character of the townhomes and how they will be a nice addition to the City. She is excited to be a part of this project. Council Member Whalen opened the public hearing. Executive Analyst Martinez Gavina stated no comments were submitted for the public hearing. M/Whalen, S/Trautmann to close public hearing. Executive Analyst Martinez Gavina took roll call vote: Regan Gonzalez: AYE Supple: AYE Trautmann: AYE Garcia: AYE Whalen: AYE Motion carried 5-0 M/Whalen, S/Supple to adopt a resolution approving a final plat of the RF64 Townhomes Addition. RESOLUTION NO. 11737 RESOLUTION GRANTING APPROVAL OF A FINAL PLAT FOR RF64 TOWNHOMES Executive Analyst Martinez Gavina took roll call vote: Regan Gonzalez: AYE Supple: AYE Trautmann: AYE Garcia: AYE Whalen: AYE Motion carried 5-0 Council Meeting Minutes -5- April 28, 2020 Item #7 PROPOSED ORDINANCE TO CONSIDER THE ADOPTION OF AN EMRGENCY ORDINANCE TO PROVIDE EMERGENCY RENTAL ASSISTANCE THAT WILL PROVIDE TEMPORARY RELIEF FOR HOUSEHOLDS IN THE CITY EXPERINECING FINANCIAL HARDHIP DUE TO THE COVID-19 CRISIS (STAFF REPORT NO. 56) Council Member Supple presented staff report 56. Director Stark added the HRA staff is looking at the budget if these needs were to continue which most likely will. Housing Manager Urban explained the City CBG money has been announced and VEAP will be receiving their funds soon. Council Member Supple thanked staff for being able to provide for this need. Council Member Garcia thanked all those involved with VEAP and how donations go directly to their services. She then thanked staff and HRA members for their leadership for making this happen. Council Member Whalen expressed thanks to staff and HRA for their work. He spoke of how there has been contact with state and national elected leadership about the need of funds. He appreciates what the City is able to do at a local level and is looking forward to what can be done regarding a permanent affordable housing trust fund. Council Member Trautmann echoed gratefulness to VEAP and how they are building good infrastructure. He reminded residents that a small donation will not be considered a small amount to those who are need. He also encouraged residents to reach out if they are in need. Council Member Supple questioned if the funds will be specifically for Richfield residents. Housing Manager Urban explained the funds will go to the partnership of Richfield, Bloomington and Edina for VEAP services. Director Stark added that $30,000 will be solely for Richfield residents. Mayor Regan Gonzalez commented on the approach of not using all the funds right away and doing it incrementally. This is just one example of how staff and community have come together to support those in need and is fortunate to have the infrastructure. M/Supple, S/Trautmann to (1) approve an emergency ordinance creating an Affordable Housing Trust Fund to provide emergency rental assistance for low-income Richfield renters impacted by the COVID-19 crisis; and (2) adopt a resolution authorizing summary publication of said ordinance. . RESOLUTION NO. 11736 RESOLUTION APPROVING SUMMARY PUBLICATION OF AN EMERGENCY ORDINANCE ESTABLISHING AN AFFORDABLE HOUSING TRUST FUND Executive Analyst Martinez Gavina took roll call vote: Regan Gonzalez: AYE Supple: AYE Council Meeting Minutes -6- April 28, 2020 Trautmann: AYE Garcia: AYE Whalen: AYE Motion carried 5-0 Item #8 OTHER BUSINESS TO CONSIDER ACCEPTING THE PRICING COMMITTEE’S RECOMMENDATION FOR THE SALE OF $5,375,000 GENERAL OBLIGATION BONDS, SERIES 2020A (STAFF REPORT NO. 57) Mayor Regan Gonzalez presented staff report 57. Director Regis spoke of the good results that came from the sale. Rebecca Kurtz provided a summary of the bond sale. It was reported to have a AA+ rating and was a very positive report. It has been a great reflection on management within the City. Director Regis added that with the sale, the per bond amount was able to be reduced as well as a considerable amount of interest saved. Rebecca Kurtz commented that a 2.1% amount was estimated but it came in 1.9% which was great news. With this, there is less interest costs and savings. The funds will be available May 14. M/Regan Gonzalez, S/Whalen to accept the recommendation of the pricing committee in awarding the sale of General Obligation Bonds, Series 2020A, in the original aggregate principal amount of $5,375,000. Council Member Supple thanked staff and the past leadership for their stewardship within the City. Council Member Trautmann shared that the bonding is for projects already completed and currently completing. It is saving the City larger costs in the future. He then thanked Director Regis for his work regarding the sale. Mayor Regan Gonzalez echoed the specific thank you to Director Regis along with the pricing committee and Ehlers to ensure we are most prudent in this time to make smart financial decisions. She commented how residents are fortunate to staff for keeping an eye on what is financially best for Richfield. Executive Analyst Martinez Gavina took roll call vote: Regan Gonzalez: AYE Supple: AYE Trautmann: AYE Garcia: AYE Whalen: AYE Motion carried 5-0 Council Meeting Minutes -7- April 28, 2020 Item #9 CITY MANAGER’S REPORT City Manager Rodriguez spoke on behalf of all staff in sending Council Member Trautmann condolences and how beautiful the tribute was of his mother. She then discussed a webinar that occurred with the League of Minnesota Cities and Governor Walz regarding strong support to a robust bonding bill and local government aid. She then briefly touched on the following regarding the financial fallout: • Soft hiring freeze-this would include those positions approved in the 2020 budget but not yet filled and any new vacancies. Directors will work with HR on whether to fill new/vacant positions. • Defer expenditures and capital projects as much as possible. • Prepare budget estimates given disruptions through June, through the end of September and through the end of the year. o Quantify revenue impacts including possible FEMA or other emergency funding o Quantify existing and anticipated savings of conference and training cancellations o Quantify savings on supplies and less staffing of cancelled or limited programming o Identify options for further savings o Quantify any budget increases due to the pandemic o Please include detailed assumptions o This information will then flow into 2020 revised budgets as part of the regular budget process City Manager Rodriguez also discussed that staff is waiting on tougher decisions such as summer programming. There is about a month lead time to hire and train staff. She is hopeful to have an answer in May but it has been incredibly hard on Director Markle. Council Member Trautmann wondered about being able to offer programs for older children to engage outdoors while still social distancing. City Manager Rodriguez replied that Director Markle is looking into all options and doing what is possible. She then briefly spoke on the following items: • Restricted passport services to resume next week by appointment. • Taking applications for small business forgivable loans. • About 700 responses to the resident COVID-19 survey. • City-wide resident letter regarding available services. • The overwhelming positive response from the Birthday Patrols. • The Fire Department collected over a thousand masks. Mayor Regan Gonzalez thanked staff for continuing to pivot on a moment’s notice during these difficult times. Item #10 CLAIMS AND PAYROLL M/Garcia, S/Supple that the following claims and payrolls be approved: U.S. Bank 04/28/2020 A/P Checks 286676 - 287048 $ 1,182,837.10 Payroll: 153747 - 154064 671,514.68 TOTAL $ 1,854,351.78 Council Meeting Minutes -8- April 28, 2020 Executive Analyst Martinez Gavina took roll call vote: Regan Gonzalez: AYE Supple: AYE Trautmann: AYE Whalen: AYE Garcia: AYE Motion carried 5-0 Item #11 HATS OFF TO HOMETOWN HITS Council Member Garcia commented on nice is seeing people while she is out walking. She does miss seeing Council and staff in person. Council Member Whalen thanked all residents for being patient and respecting the Governor’s orders. He encouraged people to continue following the social distancing rules. He then mentioned the community survey was covered in the work session and gave great praise to the Public Works Department. Council Member Supple reminded residents the Richfield Foundation has been awarded funds from the Minnesota Disaster Recovery fund to support non-profits affected by COVID-19 and the deadline is May 15. She encouraged programs to apply. She then thanked all essential workers but specifically the families of essential workers for supporting them during these unprecedented times. Council Member Trautmann recapped the Friends of Wood Lake virtual gala was a success and the virtual auction is open until May 1. He thanked everyone that bought a ticket to support the cause. He also praised Director Stark and staff for the work on the small business loan program initiative and leadership. Council Member Trautmann then expressed gratefulness to Mount Olivet healthcare workers. Mayor Regan Gonzalez mentioned the community survey and what great results came from the responses. She then gave a shout out to all the staff participating in the birthday parades for children in Richfield. She also thanked all residents who have donated masks to the City for distribution. Mayor Regan Gonzalez commented on all the sidewalk and driveway art she has been seeing and how wonderful it is. She also reminded residents to take care of themselves. This situation will be a long term thing and people need to find those moments of joy. Lastly, she spoke of the Richfield Rotary and how they have donated over $2,000 to Parks and Recreation to put toward the new dog park and inclusive park. She also encouraged residents to join the Richfield Rotary and be a part of all the great things they contribute to the City of Richfield. Item #12 ADJOURNMENT The meeting was adjourned by unanimous consent at 8:24 p.m. Date Approved: May 12, 2020 Maria Regan Gonzalez Council Meeting Minutes -9- April 28, 2020 Mayor Kelly Wynn Katie Rodriguez Senior Office Assistant City Manager Proclamation of the City of Richfield WHEREAS, The City of Richfield is committed to acting courageously to advance equity and create a vibrant, safe, and healthy community where people of all races thrive; and WHEREAS, emerging COVID-19 infection and mortality data illuminates a disturbing, disproportionate impact on Black, Indigenous, and People of Color, most specifically African American communities; and WHEREAS, Black, Indigenous, People of Color, undocumented Minnesotans, people with disabilities, are more likely to be low-wage, essential frontline workers, such as service workers and health care workers, and thus at higher risk of exposure and are disproportionally burden by the virus and its impacts; and WHEREAS, the State of Minnesota has recently seen a rise in reports of discrimination toward the Asian American community; and WHEREAS, we recognize the unequal allocation of power and resources as a root cause of racial and other health inequities; and WHEREAS, our city commits to lifting up the health and social needs of the most marginalized members of our communities, and sharing examples of how centering their needs can ensure that we are all safe and healthy; and WHEREAS, our city commits to providing targeted education and resource information to communities of color, immigrants, refugees and people with disabilities who are realizing significant adverse health and socioeconomic impacts; and WHEREAS, our city commits to standing in solidarity against xenophobic and racist attacks on Asian Americans; and WHEREAS, our city will work side-by-side with community partners to identify and address the ways that this infection may exacerbate existing inequities in our communities and how we can reduce these inequities; and WHEREAS, this moment is an opportunity for our City and community to better understand how we are all impacted when some of us lack the unequal access to resources, health and opportunities. NOW, THEREFORE, I, MARIA REGAN GONZALEZ, Mayor of the City of Richfield, do proclaim that the City of Richfield commit to centering equity in our community’s response to the COVID-19 global pandemic in partnership with the surrounding cities of Bloomington and Edina. PROCLAIMED this 12th day of May, 2020. Maria Regan Gonzalez, Mayor AGENDA SECTION:CONSENT CALENDAR AGENDA ITEM #3.A. STAFF RE P ORT NO. 58 CIT Y COUNCIL ME E T ING 5/12/2020 RE P O RT P RE PA RE D B Y: K rista Guzman, HR Manager D E PA RTME NT D IRE C TO R RE V IE W: P am D mytrenko O THE R D E PA RTM E NT RE V IE W: N/A C ITY MA NA G E R RE V IE W: K atie Rodriguez 5/6/2020 I T E M F O R C O UNC IL C O NS ID E RAT I O N: Consider adoption of a resolution authorizing the City to affirm the monetary limits on statutory municipality tort liability. E X E C UT IV E S UM M ARY: The City purchases its liability insurance coverage from the League of Minnesota Cities I nsurance Trust (L MC I T). Each year, the City must decide to either affirm or waive its statutory limits of liability by J uly 1. After reviewing cost considerations measured against potential risk, the City has, historically, affirmed the liability limits which are $500,000 for an individual claimant and $1,500,000 per occurrence. Staff is recommending the same course of action for the upcoming insurance renewal. RE C O M M E ND E D AC T I O N: By motion: Adopt a resolution authorizing the City Council to affirm the monetary limits on municipal tort liability established by Minnesota Statutes 466.04. B AS IS O F RE C O M M E ND AT I O N: A.H IS TOR IC AL C ON T E X T A requirement of insurance coverage through the L MC I T is an annual affirmation or waiver of statutory limits of liability. The current statutory limits of liability for Minnesota cities are $500,000 for an individual claimant and $1,500,000 per occurrence. Cities can waive these limits to allow an individual claimant to recover more than $500,000, up to the $1,500,000 per occurrence limit, if excess liability insurance is purchased. However, the cost of the excess liability insurance continues to be very expensive. An additional $1,000,000 of coverage would cost the City approximately $65,000 annually. Slightly more than half of the cities in Minnesota do not waive its limits of liability. B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc): The State Statute establishes liability limits for cities and the current level is $1,500,000, which appears to be a reasonable limit. Historically, the majority of municipalities in Minnesota do not waive the monetary limits on municipality tort liability as was established by Statutes 466.04. The Council could waive its statutory limits in future years if a decision was made to do so. The Council may also wish to consider purchasing excess liability in the future. I f this is the case it may be purchased at any point in the future. C.C R IT IC AL T IMIN G IS S U E S: The City's insurance policy with the League of Minnesota Cities I nsurance Trust will renew on J uly 1, 2020. This action must be completed on, or before that time. D.F IN AN C IAL IMPAC T: The City has historically not purchased excess liability coverage because of the cost of such coverage. The annual premium for $1 million of coverage would be between $65,000 and $75,000 if the City decided to waive its liability limits. E.L E GAL C ON S ID E R AT ION: The tort liability limits established by Minnesota Statutes have historically protected cities and no Minnesota court has ever established a monetary award in excess of the statutory limits against a municipality. Each city must annually decide whether the city would voluntarily waive the statute for both the single claims and each occurrence limit. ALTE R N AT IV E R E C O MME N D ATIO N(S): I f the Council determines that any single claimant should receive more than the $500,000 limit, the Council could elect to waive the statutory monetary limits. I f the Council determines that the $1,500,000 per occurrence limit is not adequate, the City could purchase excess liability coverage. P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G: None AT TAC H ME N T S: D escription Type Tort L iability Resolution Resolution L etter RESOLUTION NO. RESOLUTION AFFIRMING MUNICIPAL TORT LIABILITY LIMITS ESTABLISHED BY MINNESOTA STATUTES 466.04 WHEREAS, Minnesota Statute 466.04 provides for Municipal tort liability limits for Minnesota cities; and WHEREAS, the League of Minnesota Cities Insurance Trust has asked that each city review the tort liability limits and determine if the respective city would choose to waive its limits; and WHEREAS, such decision to affirm or waive the tort liability limits must be filed with the League of Minnesota Cities Insurance Trust at the insurance renewal date. NOW, THEREFORE, BE IT RESOLVED that the City Manager is directed to report to the League of Minnesota Cities Insurance Trust that the Richfield City Council does not waive the monetary limits on the municipal tort liability established by Minnesota statutes 466.04. Adopted by the City Council of the City of Richfield, Minnesota this 12th day of May, 2020. Maria Regan Gonzalez, Mayor ATTEST: Elizabeth VanHoose, City Clerk AGENDA SECTION:PROPOSED ORDINANCES AGENDA ITEM #5. STAFF RE P ORT NO. 59 CIT Y COUNCIL ME E T ING 5/12/2020 RE P O RT P RE PA RE D B Y: Julie Urban, Housing and Redevelopment Manager D E PA RTME NT D IRE C TO R RE V IE W: John S tark, C ommunity D evelopment D irector 5/6/2020 O THE R D E PA RTM E NT RE V IE W: C ITY MA NA G E R RE V IE W: K atie Rodriguez 5/6/2020 I T E M F O R C O UNC IL C O NS ID E RAT I O N: Consider approval of a first reading of an ordinance creating an Affordable Housing Trust Fund. E X E C UT IV E S UM M ARY: An Affordable Housing Trust Fund (Trust Fund) is a tool that can be used to support the preservation and creation of affordable housing in the City. Through its Trust Fund, the City can support the rehabilitation and preservation of existing affordable housing, promote the development of additional affordable housing, and assist individuals with rental and down payment assistance. Staff recommends that the City establish its own Trust Fund to further its affordable housing efforts. T he City's Housing and Redevelopment Authority (H R A) would administer the Trust Fund on behalf of the City. Initial funding for the Trust Fund will come from the H R A's Capital Improvement Fund. Additional funding would be identified through the regular budget process and be reported to the Council on an annual basis. RE C O M M E ND E D AC T I O N: By motion: Approve first re ading of an ordinance e stablishing an Affordable Housing Trust Fund and se t se cond re ading and a public hearing for May 26, 2020. B AS IS O F RE C O M M E ND AT I O N: A.H IS TOR IC AL C ON T E X T In 2017, the State Legislature approved legislation to allow cities to establish housing trust funds in order to facilitate affordable housing efforts in the State. On April 28, 2020, the City Council adopted an emergency ordinance to provide emergency rental assistance to residents financially impacted by the COVID-19 crisis. T he City and HRA Attorneys recommended that the City adopt an Affordable Housing Trust Fund as a mechanism for providing rental and other housing assistance that may be needed on a longer-term basis. T he City, through its HRA, has long supported affordable housing activities in the City. Like the creation of the HRA in 1974, the Trust Fund provides a mechanism for the City to further its efforts to ensure housing stability by preserving and creating affordable housing. B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc): Minnesota Statutes 462C.16 establishes the authority for cities to create local housing trust funds. The City's Comprehensive Plan strongly supports the preservation and maintenance of the City's housing stock and the provision of housing that meets the diverse needs of all its residents. Ensuring housing stability for its residents and preserving and creating affordable housing furthers these goals. C.C R IT IC AL T IMIN G IS S U E S: Notice of the public hearing and second reading, to be held on May 26, 2020, would be published in the Sun Current on May 14, 2020. D.F IN AN C IAL IMPAC T: The HRA will provide initial funding for the Trust Fund from its Capital I mprovement Fund for emergency rental assistance related to C OV I D-19 impacts. Additional funds may be added through the HRA's regular budget process and will be reported to the Council on an annual basis. Sources of funds for the trust fund include, but are not limited to: donations; bond proceeds; grants and loans from a state, federal or private source; appropriations by local government; investment earnings; pooled Tax I ncrement Financing (TI F), and Economic Development Authority (E D A) and HRA levies. E.L E GAL C ON S ID E R AT ION: T hrough an Affordable Housing Trust Fund, the City may undertake affordable housing activities such as pay for administrative expenses (10% maximum); make loans, grants and loan guarantees for the development of affordable housing; match other funds from federal state, or private resources; provide down payment assistance, rental assistance, and homebuyer counseling services. Activities may be directed towards people with very low (up to 50% Area Median Income, AMI), low (up to 80% AMI) and moderate income (up to 120% AMI). While the City's HRA has been conducting affordable housing activities since its inception in 1974, the Trust Fund statute provides clear legal authority for a variety of affordable housing-related activities and a budgeting mechanism for tracking those efforts. While pooled T IF may be contributed to a housing Trust Fund, the same rules that restrict the use of T IF would apply to the Trust Fund, so it is unlikely that those funds would be contributed to the Trust Fund until such time that changes were made to the current restrictive accounting requirements. T he Ordinance was written by the HRA Attorney and reviewed by the City Attorney. ALTE R N AT IV E R E C O MME N D ATIO N(S): Approve first reading with modifications. P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G: N/A AT TAC H ME N T S: D escription Type Housing Trust F und Ordinance Ordinance BILL NO. ______ AN ORDINANCE ESTABLISHING AN AFFORDABLE HOUSING TRUST FUND THE CITY OF RICHFIELD DOES ORDAIN: Section 1. Preamble. 1.01. In order to provide the City of Richfield (the “City”) with additional tools to support the rehabilitation and preservation of existing affordable housing within the City, promote the development of additional affordable housing within the City, and assist individuals with rental and down payment assistance, the City has determined to create an Affordable Housing Trust Fund. Section 2. Definitions. 2.01. Persons of very low income means families and individuals whose incomes do not exceed 50 percent of area median income, as median income was most recently determined by the United States Department of Housing and Urban development for the Minneapolis-St. Paul- Bloomington, Minnesota Metropolitan Statistical Area, as adjusted for smaller and larger families. 2.02. Persons of low income means families and individuals whose incomes do not exceed 80 percent of the area median income, as median income was most recently determined by the United States Department of Housing and Urban development for the Minneapolis-St. Paul- Bloomington, Minnesota Metropolitan Statistical Area, as adjusted for smaller and larger families. 2.03. Persons of moderate income means families and individuals whose incomes exceed 80 percent, but do not exceed 120 percent, of area median income, as median income was most recently determined by the United States Department of Housing and Urban development for the Minneapolis-St. Paul-Bloomington, Minnesota Metropolitan Statistical Area, as adjusted for smaller and larger families. Section 3. Establishing Affordable Housing Trust Fund. 3.01. Pursuant to the authority granted to the City under Minnesota Statutes Section 462C.16, an affordable housing trust fund is established for the following purposes: provide loans and grants to for-profit and non-profit housing developers for the acquisition and capital and soft costs necessary for the creation of new affordable rental and owner- occupied housing, for the rehabilitation and preservation of existing multi-family residential rental housing including naturally occurring affordable housing and rental assistance and homeownership assistance to persons of very low, low, and moderate income. Bill No. _____ Page 2 2 Section 4. Funding Sources. 4.01. The Affordable Housing Trust Fund shall be funded by an annual budgeted allocation of funds from the Housing and Redevelopment Authority in and for the City of Richfield (HRA) levy and funds from the Richfield Economic Development Authority (EDA) levy, as approved by the City Council. Other sources of funding may include, but are not limited to: (a) Private cash donations from individuals and corporations designated for the Affordable Housing Trust Fund. (b) Payments in lieu of participation in current or future affordable housing programs. (c) Matching funds from a federal or state affordable housing trust fund; or a state program designated to fund an affordable housing trust fund. (d) Principal and interest from Affordable Housing Trust Fund loan repayments and all other income from Affordable Housing Trust Fund activities. (e) The sale of real and personal property. (f) Local government appropriations, development fees and other funds as designated from time to time by the City Council. (g) Tax Increment Finance (TIF) pooled funds. Section 5. Purpose of Affordable Housing Trust Fund. 5.01. The City may use money from the Affordable Housing Trust Fund to assist proposed projects or programs to develop or preserve affordable housing for persons of very low, low, and moderate income to include: (a) Making loans at interest rates below or at market rates in order to strengthen the financial feasibility of proposed projects; (b) Guaranteeing of loans; (c) Providing gap financing for affordable housing developments; (d) Financing the acquisition, demolition, and disposition of property for affordable housing projects; (e) Financing construction of public improvements and utilities to aid proposed affordable residential developments; Bill No. _____ Page 3 3 (f) Financing the rehabilitation, remodeling, or new construction of affordable housing; (g) Tenant and project based rental assistance; (h) Funding for acquisition and rehabilitation in conjunction with or related to affordable housing projects; (i) Funding to facilitate affordable homeownership opportunities including down payment assistance, second mortgages, closing costs, etc.; (j) Administrative costs associated with affordable housing programs that do not exceed ten percent of the balance fund; (k) Interim financing of public costs for affordable housing projects in anticipation of a permanent financing source (i.e. construction financing, bond sale, etc.); and (l) Other uses as permitted by law and approved by the City Council. Section 6. Administration of Affordable Housing Trust Fund. 6.01. The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the “Authority”) shall administer the Affordable Housing Trust Fund on behalf of the City. 6.02 The Authority shall determine the terms and conditions of repayment of loans and grants from the Affordable Housing Trust Fund including the appropriate security and interest, if any, should repayment be required. Interest on loans and grants shall be as established by the Authority from time to time or at the time of approval of a specific project or program. 6.02. The Authority shall report annually to the City on the use of the funds in the Affordable Housing Trust Fund, including the number of loans and grants made, the number and types of residential units assisted, and the number of households for which rental assistance or down payment assistance were provided. The City shall post the annual report on its Website. Section 7. Council Action. 7.01. The City Council of the City of Richfield hereby ordains the implementation of the Affordable Housing Trust Fund. 7.02. This Ordinance shall be effective on the 30th day following the publication of a Bill No. _____ Page 4 4 summary of this ordinance approved by the City Council of the City of Richfield in the official newspaper of the City of Richfield. 7.03. The summary of this Ordinance was reviewed and approved by the City Council of the City of Richfield and the City Council finds that the summary of this Ordinance clearly informs the public of the intent and effect of this Ordinance. Section 8. This Ordinance will be effective in accordance with Section 3.09 of the City Charter. Adopted by the City Council of the City of Richfield, Minnesota on ____________, 2020. _________________________________ Maria Regan Gonzalez, Mayor Attest: Beth Vanhoose, City Clerk Action on this ordinance: Date of introduction: May12, 2020 Date of adoption: _____, 2020 Motion for adoption: Seconded by: Voted in favor of: Voted against: Abstained: Absent: Ordinance adopted. Date of publication: I hereby certify that the foregoing is a true and correct copy of an ordinance adopted by the City Council of the City of Richfield, Minnesota, at a meeting held on ______, 2020. Bill No. _____ Page 5 5 Beth Vanhoose, City Clerk 650776v2(JAE) RC125-377 AGENDA SECTION:RESOLUTIONS AGENDA ITEM #6. STAFF RE P ORT NO. 60 CIT Y COUNCIL ME E T ING 5/12/2020 RE P O RT P RE PA RE D B Y: Matt B rillhart, A ssociate P lanner / Melissa P oehlman, A sst. C D D irector D E PA RTME NT D IRE C TO R RE V IE W: John S tark, C ommunity D evelopment D irector 5/6/2020 O THE R D E PA RTM E NT RE V IE W: N/A C ITY MA NA G E R RE V IE W: K atie Rodriguez 5/6/2020 I T E M F O R C O UNC IL C O NS ID E RAT I O N: Consider adoption of a resolution granting an extension of land use approvals for a planned unit development at 101 66th Street East (The Emi). E X E C UT IV E S UM M ARY: I n J une 2018, the City Council approved development plans for a mixed use building with retail space and 31 apartments at 66th Street and 1st Avenue, now known as The Emi. Due to delays in securing financing and identifying a general contractor, construction was delayed, and in J une 2019 the Council granted a one-year extension to get the project underway. W hile they had hoped to be under construction this spring, the current pandemic has led to a second extension request by P L H & Associates (Applicant). Though construction on the project has not begun, initial building permit applications were submitted to the I nspections Division in summer 2019. I f an extension is not granted, the Applicant would be required to begin the land use approval process anew; however, applicable land use regulations remain unchanged from the time of approval. Rather than granting the project another full year extension, staff recommends an extension commensurate with the extensions granted to all current Housing and Redevelopment Authority (HRA) agreements. On Monday, April 20 the HRA authorized a 120-day extension of all contract benchmarks and deadlines, and granted the Executive Director the authority to further extend deadlines by 60 days if conditions warrant. Staff recommends that the Council grant this same extension to P L H & Associates. Staff continues to support the proposed development as an investment that capitalizes on the major investment made in 66th Street and the production of needed housing. RE C O M M E ND E D AC T I O N: By motion: Adopt a resolution granting an extension of (up to) 180 days for a conditional use permit and final development plan for a planned unit development at 101 66th Street East. B AS IS O F RE C O M M E ND AT I O N: A.H IS TOR IC AL C ON T E X T Historically, land-use approval extensions have been approved unless some aspect of the project has changed significantly, City ordinances/regulations have been changed or the applicant has already sought a prior extension; only the latter condition is pertinent in this case. The current pandemic is unprecedented and an extension that allows time for the market to stabilize is reasonable. More information about the Emi project, including the previously approved plans, is available at: https://www.richfieldmn.gov/development B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc): The term of City approvals is one year. I f a project for which approvals have been granted is not substantially underway within one year, the applicant must request an extension from the City Council. The City Council may grant an extension of up to one year. I f the extension is not granted, the Applicant would have to begin the land use approval process anew. Land use policies for the property and area have not changed since the approval of the development and it continues to meet adopted goals and policies. C.C R IT IC AL T IMIN G IS S U E S: The land use approvals for this project are scheduled to expire on J une 26, 2020. I f the full 180 day extension is granted, the deadline for "substantial construction" would be December 23, 2020. D.F IN AN C IAL IMPAC T: The required processing fee has been paid. E.L E GAL C ON S ID E R AT ION: None ALTE R N AT IV E R E C O MME N D ATIO N(S): None P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G: Paul Lynch, P L H & Associates AT TAC H ME N T S: D escription Type Resolution Resolution L etter E xtension request letter B ackup Material Resolution No. 11513 (project approval)B ackup Material RESOLUTION NO. _______ RESOLUTION GRANTING AN EXTENSION OF A FINAL DEVELOPMENT PLAN AND CONDITIONAL USE PERMIT FOR A PLANNED UNIT DEVELOPMENT AT 101 66TH STREET EAST WHEREAS, by Resolution No. 11513, adopted on June 26, 2018, the City Council approved a final development plan and conditional use permit for a planned unit development to allow construction of a mixed use building containing 31 apartments and approximately 6,000 square feet of commercial space at 101 66th Street East; and WHEREAS, Subsection 547.09, Subdivision 9 of the Richfield City Code requires that substantial construction be completed within one year of approval, less the approval expire or the applicant requests and is granted an extension; and WHEREAS, by Resolution No. 11627, adopted on May 28, 2019, the City Council granted the project a one year extension; and WHEREAS, the spread of COVID-19 in the State of Minnesota has created disruptions in the local markets, including the financial and construction markets, which has caused developers to request extensions of deadlines; and WHEREAS, City staff has received a request from PLH & Associates, LLC (the “Applicant”) for a further extension of land use approvals granted on June 26, 2018; and WHEREAS, due to the market disruptions described herein, the City Council wishes to provide the additional time requested. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield: 1. The City Council extends the approvals granted by Resolution No. 11513 for a period not to exceed 180 days from June 26, 2019. The initial extension period is 120 days, and the Community Development Director is hereby authorized to grant a single extension of 60 additional days. 2. The deadline for “substantial construction” is hereby extended to no later than December 23, 2020. Adopted by the City Council of the City of Richfield, Minnesota this 12th day of May, 2020. Maria Regan Gonzalez, Mayor ATTEST: _________________________ Elizabeth VanHoose, City Clerk PLH & Associates, LLC PO BOX 390157, Minneapolis, MN 55439 608-206-7596 lynchp@plh-associates.com April 7, 2020 Matt, I hoped not to have to do this again, but in the current uncertain times I am writing to formally ask for additional time to get the Richfield project (The EMI) substantially started at 1st and 66th Street. It was our goal to get the project started this year spring, but after reviewing the timeline we have determined a fall 2020 start will be needed to get the project substantially started. Please accept our request to extend the start date for this exciting new project in Richfield. Any questions please contact Paul Lynch. Thank you, PLH & Associates, LLC Managing Member