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08-11-09 Regular CITY COUNCIL MEETING MINUTES Richfield, Minnesota Regular Meeting August 11, 2009 CALL TO ORDER The meeting was called to order by Mayor Pro Tempore Sandahl at 7:01 p.m. ROLL CALL Members Present: Debbie Goettel, Mayor (arrived at 8:10 p.m.); Sue Sandahl; Pat Elliott; Fred Wroge; and Tom Fitzhenry. V Staff Present: Steven L. Devich, City Manager; Mike Eastling, Public Works Director; John Stark, Community Development Director; Brad Sveum, Fire Services Director; Chris Regis, Finance Manager; Karen Barton, Assistant Community Development Director; Corrine Heine, City Attorney; and Cheryl Krumholz, Recording Secretary. OPEN FORUM None. PRESENTATION OF COLORS AND PLEDGE OF ALLEGIANCE Mayor Pro Tempore Sandahl led the audience in the Pledge of Allegiance. APPROVAL OF MINUTES M/Wroge, S/Elliott to approve the minutes of (1) Special City Council Worksession of July 28, 2009; and (2) Regular City Council Meeting of July 28, 2009. Motion carried 4-0. Council Meeting Minutes -2- August 11, 2009 Item #1 ANNUAL MEETING WITH CIVIL SERVICE COMMISSION Jerry Plagge, Civil Service Commission Chair, provided a report on the Commission's activities and goals. Item #2 I COUNCIL DISCUSSION HATS OFF TO HOMETOWN HITS DESIGNATION OF COUNCIL MEMBER(S) TO ATTEND NATIONAL LEAGUE OF CITIES OF CONGRESS OF CITIES AND EXPOSITION (COUNCIL MEMO NO. 133) UPDATE REGARDING POTENTIAL CLOSURE OF RICHFIELD POST OFFICE (COUNCIL MEMO NO. 134) The City Council discussed the recent successful Night to Unite. Council Member Elliott acknowledged the successful Penn Fest. Council Member Elliott discussed fundraising efforts by the Richfield High School football program. Council Member Wroge discussed the progress of the new Lincoln Athletic Complex. Council Member Fitzhenry acknowledged the success of the Urban Wildland Half Marathon and 5K. Council Member Fitzhenry discussed the crosswalk signs on 66th Street at Park Avenue for increased pedestrian safety. Council Member Fitzhenry acknowledged the efforts of Best Buy doing home maintenance in the area of 68th Street and Cedar Avenue. Council Member Fitzhenry reported on the recent announcement of the K-Mart closure at 65th Street and Lyndale Avenue. The City Council tabled, to the September 22, 2009 meeting, discussion of attendance at the League of Cities Congress of Cities and Exposition. City Manager Devich discussed the potential closure of the Richfield Post Office. Council Member Wroge suggested the Richfield Post Office site could be added to a potential opportunity for a development site (Bridgeman's) if the post office was in a storefront (vacant Snyder's) for the retail services, and the bulk delivery was discontinued. Mayor Pro Tempore Sandahl suggested the City Council understand the postal delivery process before making recommendations. Council Meeting Minutes -3- August 11, 2009 Item #3 COUNCIL APPROVAL OF AGENDA Mayor Pro Tempore Sandahl stated that Item #16 is removed from the agenda because the financial terms of the project have changed. M/Elliott, S/Fitzhenry to approve the agenda as amended. Motion carried 4-0. Item #4 CONSENT CALENDAR A. Consideration of approval of continuing public hearing to September 8, 2009 regarding modification to Redevelopment Plan for Richfield redevelopment project area; modification to tax increment financing plan for Interstate/Lyndale/Nicollet tax increment financing district; and proposed establishment of 2009-1 (Section 202) and 2009-2 (Section 811) tax increment financing district; all relating to Accessible Space Inc. and Twin City Christian Homes project S.R. No.154 B. Consideration of approval of resolution appointing Abisola Omiwade to Richfield Tourism Promotion Board, Inc. for remainder of three-year term ending December 31, 2009 S.R. No. 155 RESOLUTION NO. 10268 RESOLUTION APPOINTING REPRESENTATIVE TO THE BOARD OF DIRECTORS OF THE RICHFIELD TOURISM PROMOTION BOARD, INC. This resolution appears as Resolution No. 10268. C. Consideration of approval of purchase and installation of 1,922 feet of sanitary sewer lining from Insituform Technologies USA, Inc. in amount of $55,636.80 S.R. No. 156 D. Consideration of approval of purchase of new control panel from Total Control Systems, Inc. for sanitary lift station at Richfield Ice Arena in amount of $25,257 S.R. No. 157 E. Consideration of approval of amendment to Public Health Emergency Preparedness contract for 2009-2010 with Minnesota Department of Health S.R. No. 158 F. Consideration of approval of authorizing City Manager to spend up to $40,000 for repairs and improvements to Fire Station 2 due to water damage occurring on August 4, 2009 S.R. No. 159 M/Elliott, S/Fitzhenry to approve the Consent Calendar. Motion carried 4-0. Item #5 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT CALENDAR Council Meeting Minutes -4- August 11, 2009 None. Item #6 PUBLIC HEARING REGARDING RESOLUTION ADOPTING SPECIAL ASSESSMENT ROLL FOR 2008 REMOVAL OF DISEASED TREES FROM PRIVATE PROPERTY S.R. NO. 160 Mayor Pro Tempore Sandahl presented Staff Report No. 160. M/Wroge, S/Elliott to close public hearing. Motion carried 4-0. M/Sandahl, S/Wroge that the following resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 10269 RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR REMOVAL OF DISEASED TREES FROM PRIVATE PROPERTY FOR THE PERIOD OF JANUARY 1, 2008 TO DECEMBER 31, 2008 Motion carried 4-0. This resolution appears as Resolution No. 10269. Item #7 PUBLIC HEARINGS REGARDING RESOLUTIONS ADOPTING SPECIAL ASSESSMENT ROLLS FOR 2008 MAINTENANCE SERVICES AND RESOLUTIONS ORDERING CURRENT 2010 MAINTENANCE SERVICES A. 77TH STREET MAINTENANCE S.R. NO. 161 Mayor Pro Tempore Sandahl presented Staff Report No. 161. M/Wroge, S/Elliott to close public hearing. Motion carried 4-0. Public Works Director Eastling explained how the cost estimates are determined. M/Sandahl, S/Wroge that the following resolutions be adopted and that thev be made part of these minutes: RESOLUTION NO. 10270 RESOLUTION ADOPTING ASSESSMENT ON 77TH STREET MAINTENANCE FOR THE PERIOD JANUARY 1 -DECEMBER 31, 2008 This resolution appears as Resolution No. 10270. Council Meeting Minutes -5- August 11, 2009 RESOLUTION NO. 10271 RESOLUTION ORDERING UNDERTAKING OF CURRENT SERVICE PROJECT 77TH STREET PROJECT AREA JANUARY 1 THROUGH DECEMBER 31, 2010 This resolution appears as Resolution No. 10271. Motion carried 4-0. B. LYNDALE/HUB/NICOLLET MAINTENANCE S.R. NO. 162 Mayor Pro Tempore Sandahl presented Staff Report No. 162. M/Wroge, S/Fitzhenry to close public hearing. Motion carried 4-0. M/Sandahl, S/Wroge that the following resolutions be adopted and that then be made part of these minutes: RESOLUTION NO. 10272 RESOLUTION ADOPTING ASSESSMENT FOR LYNDALE/HUB/NICOLLET (LHN) MAINTENANCE FOR THE PERIOD JANUARY 1 THROUGH DECEMBER 31, 2008 This resolution appears as Resolution No. 10272. RESOLUTION NO. 10273 RESOLUTION ORDERING UNDERTAKING OF CURRENT SERVICE PROJECT LYNDALE/HUB/NICOLLET (LHN) MAINTENANCE JANUARY 1 THROUGH DECEMBER 31, 2010 This resolution appears as Resolution No. 10273. Motion carried 4-0. Item #8 PUBLIC HEARING AND SECOND READING OF ORDINANCE MODIFYING ELECTRIC FRANCHISE FEE ON NORTHERN STATES POWER DBA XCEL ENERGY FOR PROVIDING ELECTRIC SERVICE WITHIN CITY OF RICHFIELD AND RESOLUTION AUTHORIZING SUMMARY PUBLICATION OF ORDINANCE S.R. NO. 163 Council Member Fitzhenry presented Staff Report No. 163. Larry Wozniczka, 6744 Wentworth Avenue, spoke. in opposition to the franchise fees and encouraged the City Council to place the revenue source for these projects on property taxes. M/Wroge, S/Fitzhenry to close public hearing. Council Meeting Minutes -6- August 11, 2009 Motion carried 4-0. Council Member Wroge questioned if foreclosed properties paid franchise fees. Finance Manager Regis explained the fee is based on the number of meters. City Manager Devich added that staff will confirm the use of utilities by foreclosed properties. taxes. Council Member Elliott stated he recognized the benefit of franchise fees being on property Finance Manager Regis explained all properties pay the fee including those that do not pay property taxes. Council Member Wroge requested staff provide a list of properties that pay the franchise fee. M/Fitzhenry, S/Sandahl that this constitutes the second reading of Bill No. 2009-13 modifvinq electric franchise fee on Northern States Power dba Xcel Energv for providing electric service within the City of Richfield, that it be published in the official newspaper and that it be made part of these minutes, and that the following resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 10274 RESOLUTION APPROVING SUMMARY PUBLICATION OF AN ORDINANCE AMENDMENT TO APPENDIX E OF THE RICHFIELD CITY CODE WHICH PERTAINS TO THE FRANCHISE ORDINANCE Motion carried 4-0. This resolution appears as Resolution No. 10274. Item #9 PUBLIC HEARING AND SECOND READING OF ORDINANCE MODIFYING GAS FRANCHISE FEE ON CENTERPOINT ENERGY FOR PROVIDING GAS SERVICE WITHIN CITY OF RICHFIELD AND RESOLUTION AUTHORIZING SUMMARY PUBLICATION OF ORDINANCE S.R. NO. 164 Council Member Elliott presented Staff Report No. 164. M/Wroge, S/Sandahl to close public hearing. Motion carried 4-0. M/Elliott, S/Sandahl that this constitutes the second reading of Bill No. 2009-14 modifvinq gas franchise fee on Centerpoint Energv for providing gas service within the Citv of Richfield that it be published in -the official newspaper and that it be made part of these minutes and that the following resolution be adopted and that it be made part of these minutes: Council Meeting Minutes -7- August 11, 2009 RESOLUTION NO. 10275 RESOLUTION APPROVING SUMMARY PUBLICATION OF AN ORDINANCE AMENDMENT TO APPENDIX E OF THE RICHFIELD CITY CODE WHICH PERTAINS TO THE FRANCHISE ORDINANCE Motion carried 4-0. This resolution appears as Resolution No. 10275. Item #10 CONSIDERATION OF SECOND READING OF ORDINANCE AMENDMENT TO CITY ADMINISTRATIVE CODE CHAPTER 1, SUBSECTION 100.07 ADOPTING REFERENCE TO MINNESOTA STATUTES AND RULES S.R. NO. 165 Council Member Wroge presented Staff Report No. 165. M/Wroge, S/Sandahl that this constitutes the second reading of Bill No. 2009-15 approving amendment to City Administrative Code Chapter 1, Subsection 100.07 adopting reference to Minnesota Statutes and Rules, that it be published in the official newspaper and that it be made part of these minutes. Motion carried 4-0. Item #11 CONSIDERATION OF SECOND READING OF ORDINANCE AMENDMENT TO PAWNBROKER CODE, SUBSECTION 1187.43, RELATING TO CHANGING AGE LIMIT FROM 21 TO 18 YEARS FOR PAWN TRANSACTIONS S.R. NO. 166 Mayor Pro Tempore Sandahl presented Staff Report No. 166. M/Sandahl, S/Wroge that this constitutes the second reading of Bill No. 2009-16 approving amendment to Pawnbroker Code, Subsection 1187.43 relating to changing age limit from 21 to 18 years for pawn transactions, that it be published in the official newspaper and that it be made part of these minutes. Motion carried 4-0. Item #12 I CONSIDERATION OF: RESOLUTION AMENDING CITY'S COMPREHENSIVE PLAN AT 301 77TH STREET WEST FROM REGIONAL COMMERCIAL/OFFICE TO HIGH DENSITY RESIDENTIAL AND SOUTH PORTION OF 7700 PILLSBURY AVENUE SOUTH FROM HIGH DENSITY RESIDENTIAL TO MEDIUM-HIGH DENSITY RESIDENTIAL; AND FIRST READING OF ORDINANCE AMENDING APPENDIX 1 OF CITY CODE BY REZONING 301 WEST 77TH STREET FROM MIXED USE- REGIONAL TO MIXED USE-COMMUNITY S.R. NO. 167 Council Member Fitzhenry presented Staff Report No. 167. Council Meeting Minutes -8- August 11, 2009 Council Member Wroge expressed concern that the land was being changed without an offer on the land yet. Community Development Director Stark stated this is a typical process. He also explained the acquisition intention of Accessible Space Inc.; (ASi) and Twin City Christian Homes (TCCH). Dan Billmark, ASi, stated HUD requires a letter of permissive zoning for site control prior to making application for HUD funding. Council Member Wroge questioned these changes being "spot zoning." City Attorney Heine explained that, in her opinion, the proposed property zoning is acceptable. At a future date, if the City Council chooses to change zoning, the City Council makes that determination at that time. She added the zoning code was changed previously because it was determined onerous to development. City Attorney Heine stated the Comprehensive Plan amendment requires a super majority vote of the City Council, zoning does not. Mayor Goettel arrived at this time.. Council Member Elliott expressed his concern that there is not adequate time to review this proposed project. He stated he shared the concerns of the three Planning Commission members who did not support the project. Council Member Sandahl stated this is first reading so this item will be before the City Council again ,and to the Metropolitan Council for their approval. She expressed support for the project because it provides housing to unique citizens and is an asset to the community. M/Fitzhenry, S/Sandahl to approve first reading of ordinance amending Appendix 1 of City Code by rezoning 301 West 77th Street from Mixed Use-Regional to Mixed Use-Community and that the following resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 10276 RESOLUTION AMENDING THE CITY'S COMPREHENSIVE PLAN AT 301 77TH STREET WEST FROM REGIONAL COMMERCIAL/ OFFICE TO HIGH DENSITY RESIDENTIAL AND FOR THE SOUTHERN PORTION OF 7700 PILLSBURY AVENUE SOUTH FROM HIGH DENSITY RESIDENTIAL TO MEDIUM-HIGH DENSITY RESIDENTIAL Motion carried 4-1. (Wroge oppose) This resolution appears as Resolution No. 10276. Item #13 CONSIDERATION OF FIRST READING OF TRANSITORY ORDINANCE AUTHORIZING SALE OF REAL PROPERTY AT 7700 PILLSBURY AVENUE (SOUTH PORTION ONLY) AND SCHEDULING SECOND READING FOR SEPTEMBER 8, 2009 S.R. NO. 168 Council Member Elliott presented Staff Report No. 168. Council Meeting Minutes -9- August 11, 2009 Council Member Wroge questioned the. number of years for the TIF payoff. Community Development Director Stark explained there was a law changing TIF housing districts to 25 years. Community Development Director Stark explained the property valuation process including an appraisal and shadow value and the impact on the property since 2005. He also discussed the option agreement related to the value, TIF, and upfront proceeds. M/Elliot, S/Fitzhenry to approve first reading of transitory ordinance authorizing sale of real property at 7700 Pillsbury Avenue (south portion only) and scheduling second reading for September 8. 2009. Motion carried 4-1. (Wroge oppose) Item #14 CONSIDERATION OF RESOLUTION AUTHORIZING SUBDIVISION FOR FORMER CITY MAINTENANCE FACILITY AT 7700 PILLSBURY AVENUE INTO TWO SEPARATE TAX PARCELS; PARCEL NORTH OF 77TH STREET AND PARCEL SOUTH OF 77TH STREET S.R. NO. 169 Council Member Sandahl presented Staff Report No. 169. Community Development Director Stark stated there is a construction proposal from Ron Clarke for the north portion, including the mortuary and some homes, but there are site assembly issues. M/Sandahl, S/Wroge that the following resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 10277 RESOLUTION AUTHORIZING A SUBDIVISION WAIVER FOR 7700 PILLSBURY AVENUE Motion carried 5-0. This resolution appears as Resolution No. 10277. Item #15 CONSIDERATION OF RESOLUTION AMENDING PLANNED UNIT DEVELOPMENT, FINAL DEVELOPMENT PLAN, AND CONDITIONAL USE PERMIT TO ALLOW CONVERSION OF RETAIL SPACE TO 12 ADDITIONAL RESIDENTIAL UNITS AT 700 66TH STREET WEST AND 6501 WOODLAKE DRIVE; MARKET PLAZA/VILLAGE SHORES S.R. NO. 170 Council Member Elliott presented Staff Report No. 170. M/Elliott, S/Sandahl that the following resolution be adopted and that it be made part of these minutes: Council Meeting Minutes -10- August 11, 2009 RESOLUTION NO. 10278 RESOLUTION AUTHORIZING AN AMENDMENT TO THE PLANNED UNIT DEVELOPMENT, FINAL DEVELOPMENT PLAN AND CONDITIONAL USE PERMIT TO ALLOW THE CONVERSION OF RETAIL SPACE TO 12 ADDITIONAL RESIDENTIAL UNITS AT 700 66TH STREET WEST AND 6501 WOODLAKE DRIVE Motion carried 5-0. This resolution appears as Resolution No. 10278. Item #16 CONSIDERATION OF REVISED CEDAR POINT II SENIOR HOUSING DEVELOPMENT PROPOSAL BY LANG NELSON S.R. NO. 171 This item was removed from the agenda. Item #17 CONSIDERATION OF ENTERING LEASE NEGOTIATIONS FOR USE OF IDENTIFIED FUTURE REMNANT PARCEL AT 1710 EAST 78TH STREET; NORMARK SITE S.R. NO. 172 Council Member Wroge presented Staff Report No. 172. Public Works Director Eastling stated the significant parking lot repair will be part of negotiations. M/Wroge, S/Goettel to approve entering lease negotiations for use of identified future remnant parcel at 1710 East 78th Street; Normark site. Motion carried 5-0. Item #18 CITY MANAGER'S REPORT City Manager Devich reported on the process of the Lyndale Avenue bridge project. Item #19 CLAIMS AND PAYROLL M/Wroge, S/Sandahl that the following claims and payrolls be approved: Council Meeting Minutes -11- August 11, 2009 U.S. BANK 08-11-09 A/P Checks: 187643 - 188039 PAYROLL 59927 - 60305,41454 - 41455 TOTAL Motion carried 5-0. OPEN FORUM None. $ 3,273,374.18 $ 531, 345.01 $ 3,804,719.19 The City Council meeting was adjourned by unanimous consent at 8:37 p.m. Date Approved: August il, 2009 d` Cheryl rumh Iz Recording Secretary City Manager