Loading...
2025-01-28 City Council AgendaREGULAR CITY COUNCIL MEETING RICHFIELD MUNICIPAL CENTER, COUNCIL CHAMBERS JANUARY 28, 2025 7:00 PM INTRODUCTORY PROCEEDINGS Call to order Pledge of Allegiance Open forum Participants can share their comments in person, by voicemail, or email, and may also request to participate virtually. For more information on submitting comments, refer to the Council Agenda and Minutes page on richfieldmn.gov/citycouncil Approval of the Minutes of the (1) City Council Special Meeting from January 7, 2025, (2) City Council Work Session Meeting from January 7, 2025, (3) City Council Work Session Meeting from January 14, 2025, (4) City Council Regular Meeting from January 14, 2025. PRESENTATIONS 1.Congresswoman Omar Briefing 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 the approval of a first reading of an ordinance amendment pertaining to City Code Section 925.01 - Public Nuisances Subd. 2. Staff Report No. 15 B.Consider authorizing the purchase of two Olympia Millenium E ice resurfacers for $250,000 in budget year 2025 and $89,626 in budget year 2026, totaling $339,626, from CTM Services, Inc., and authorize the City Manager to approve contract changes up to $175,000 without further City Council consideration. Staff Report No. 16 C.Consider authorizing the purchase of a Pierce Enforcer PUC Fire Pumper for $400,000.00 in budget year 2025 and $302,095.67 in budget years 2026, 2027, and 2028, totaling $1,306,287.00, from MacQueen Emergency Group, and authorize the City Manager to approve contract changes up to $175,000.00 without further City Council consideration. Staff Report No. 17 4.Consideration of items, if any, removed from Consent Calendar PROPOSED ORDINANCES 5.Consider a second reading and summary publication of an ordinance amendment regarding drive-through signs. Staff Report No. 18 RESOLUTIONS 6.Consideration of a resolution supporting a 4d tax classification for Hempel Real Estate relating to the acquisition and preservation of three affordable rental communities. Staff Report No. 19 7.Violation hearing and consider a resolution regarding civil enforcement for establishments that recently underwent alcohol compliance checks conducted by Richfield Public Safety staff, and failed by selling alcohol to a person under the age of 21. Staff Report No. 20 OTHER BUSINESS 8.Consider appointment to fill a vacancy on the Sustainability Commission. Staff Report No. 21 CITY MANAGER’S REPORT 9.City Manager's Report CLAIMS AND PAYROLLS 10.Claims and Payroll COUNCIL DISCUSSION 11.Hats Off to Hometown Hits 12.Adjournment 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 612-861-9739. CALL TO ORDER The meeting was called to order by Mayor Supple at 7:00 p.m. in the Council Chambers. Council Members Present: Council-Elect Members Present: Mary Supple, Mayor; Sharon Christensen. Walter Burk, Council-Elect Member Ward 1; Sean Hayford Oleary, Councilmember Ward 2; Rori Coleman-Woods Council- Elect Member Ward 3. Staff Present: Katie Rodriguez, City Manager; Kate Aitchison, Communications Manager; and Michelle Friedrich, City Clerk. Others Present: PLEDGE OF ALLEGIANCE Mayor Supple led the Pledge of Allegiance. PRESENTATIONS 1. Oath of Office of Richfield City Councilmember-Elect, Walter Burk, Ward 1 City Clerk Friedrich administered the Oath of Office to Walter Burk. Councilmember Burk expressed gratitude to Simon Trautmann and other local government officials for their assistance during his campaign. He also thanked his friends and family for their ongoing support. 2. Oath of Office of Richfield City Councilmember, Sean Hayford Oleary, Ward 2 City Clerk Friedrich administered the Oath of Office to Sean Hayford Oleary. Councilmember Hayford Oleary expressed excitement and joy as he was sworn in for his second term. He thanked the Richfield voters for giving him the opportunity to serve another four years and shared his enthusiasm for the work to be accomplished together in the coming term. 3. Oath of Office of Richfield City Councilmember-Elect, Rori A. Coleman-Woods, Ward 3 City Clerk Friedrich administered the Oath of Office to Rori A. Coleman-Woods. Council Member Coleman-Woods thanked her family and those who supported her campaign. CITY COUNCIL MEETING MINUTES Richfield, Minnesota Special Council Meeting January 7, 2025 City Council Meeting Minutes -2- December 10, 2024 ITEM #12 ADJOURNMENT MOTION: made by Hayford Oleary, seconded by Christensen to adjourn the meeting at 7:08 p.m. Motion carried: 5-0 Date Approved: January 28, 2025 Mary Supple Mayor Michelle Friedrich Katie Rodriguez City Clerk City Manager CITY COUNCIL MEETING MINUTES Richfield, Minnesota Council Work Session January 7, 2025 Mayor Supple called the work session to order at 5:45 PM in the Bartholomew Room. Council Members Mary B. Supple, Mayor; Walter Burk, Councilmember-Elect; Sean Hayford Oleary; Present: Sharon Christensen; Rori A. Coleman-Woods, Councilmember-Elect. Council Members Absent: Staff Present: Katie Rodriguez, City Manager; Sack Thongvanh, Assistant City Manager; Kristin Asher, Public Works Director; Melissa Poehlman, Community Development Director; Karl Huemiller, Recreation Director; Mike Dobesh, Fire Chief; Jay Henthorne, Public Safety Chief; Courtney Miller, Senior Analyst; Michelle Friedrich, City Clerk; Mark McKinley, Administrative Assistant. ITEM #1 WELCOME COUNCILMEMBERS-ELECT Mayor Supple welcomed incoming Councilmembers. ITEM #2 COUNCIL AND STAFF INTRODUCTION The council and staff introduced themselves to incoming councilmembers and provided a general overview of their role and responsibilities within the city. ITEM #3 ADJOURNMENT This meeting was adjourned by unanimous consent at 6:45 p.m. Date Approved: January 28, 2025 Mary B. Supple Mayor Michelle Friedrich Katie Rodriguez City Clerk City Manager CALL TO ORDER CITY COUNCIL MEETING MINUTES Richfield, Minnesota City Council/HRA Joint Work Session January 14, 2025 CALL TO ORDER Mayor Supple called the work session to order at 5:45 p.m. in the Bartholomew Room. Council Members Present: Mary Supple, Mayor; Sharon Christensen; Walter Burk, Sean Hayford Oleary, Rori A. Coleman-Woods Staff Present: HRA Commission: Guests: Katie Rodriguez, City Manager; Melissa Poehlman, Community Development Director; Julie Urban, Assistant Community Development Director; Courtney Miller, Management Analyst; Michelle Friedrich, City Clerk. Gordon Hanson; John Young Josh Krsnak, CEO Hempel Real Estate; Ryan Tauer, Hempel Real Estate Acquisitions; and John Errigo, Greater MN Housing Fund. ITEM #1 DISCUSS A REQUEST FOR FINANCIAL ASSISTANCE AND 4D TAX STATUS FROM HEMPEL REAL ESTATE FOR THE ACQUISITION AND PRESERVATION OF THREE AFFORDABLE RENTAL COMMUNITIES. Community Development Director Poehlman introduced the presentation to the Council. Assistant Community Development Director Urban introduced the applicant request for financial assistance and 4d status and preservation of three affordable rental communities. Assistant Community Development Director Urban noted the properties contain a total of 236 units and the properties are considered Naturally Occurring Affordable Housing or NOAH properties. Assistant Community Development Director Urban reviewed Hempel Real Estate is seeking to purchase the properties and maintain their affordability and is requesting additional assistance from the City's HRA to ensure affordability and is seeking up to $1.77 million from the City's Affordable Housing Trust Fund. Assistant Community Development Director Urban noted the HRA would need to shift funds from the Spending Plan Fund to meet the obligation. Josh Krsnak, CEO of Hempel Real Estate, provided an overview of the company’s background and introduced his team, outlining their roles. He highlighted that Hempel Real Estate has acquired 20 NOAH properties over the past 10 years, all of which have been maintained as NOAH properties. Mr. Krsnak explained the company’s commitment to investing in NOAH properties and emphasized their importance as long-term assets for Hempel Real Estate. John Errigo, Greater Minnesota Housing Fund, discussed the benefits of funding through the organization. He explained their available capital is limited due to their role as a non-profit preservation buyer, market pricing, and their mission to keep rents affordable. City Council Work Session Minutes -2- January 14, 2025 Community Development Director Poehlman commented on the risks and tradeoffs. She explained 4d provides tax savings to the property, by shifting the tax burden to other taxpayers in the district. Community Development Director Poehlman noted an average home of $319,000 would see a city tax increase of $10.00 annually, and other NOAH properties would also pay more. Community Development Director Poehlman added the city could lower the tax levy to avoid redistribution of payment of taxes. She added that there is a conversion risk, and if the properties were sold to a non-preservation buyer and rents increased significantly, the loss of this housing for rent-assistance clients could impact the viability of the HCV Program. HRA Commissioner Hanson asked if there are other 4d properties in Richfield. Assistant Community Development Director Urban noted through a federal subsidy there are several other properties that are classified as 4d. Mayor Supple asked if the rate before was .75 and when the Legislature changed the rules in 2023, all of those dropped to .25. Community Development Director Poehlman stated yes, they did. Councilmember Hayford Oleary noted the sale price agreed to is higher than what normally would be justified. Assistant Community Development Director Urban noted the price is not far from the assessed value. Ryan Tauer explained that the typical investor return is a minimum of 10% return on capital. Mr. Tauer, noted that today, if they put leverage on the property, their return would be around 1-2%. Mr. Tauer added that the assessed value and the purchase price are almost identical. Councilmember Hayford Oleary asked for clarification on the income requirements for residents and whether a resident who increases their income would lose the ability to remain in the building. Ryan Tauer noted income requirements are based upon move-in income. John Errigo discussed certifying incomes upon new occupancy plus utility allowance. Mr. Errigo noted an $8.6 investment with a cap of 2% max rental increases over the next 15 years. The difference between this property and normal rental properties is that they will be holding that line more flat than other properties where rents will increase more each year. He noted that the goal is ultimately to maintain long-term affordability. HRA Commissioner Young asked how much debt, and equity would be acquired for the city and the State in this process. John Errigo explained the numbers behind the project. HRA Commissioner Young asked if there were other interested buyers for the property. Hempel CEO Krsnak described the process. He noted that Errigo asked him if he would be interested in the project. There were about 10-15 different offers and most offers were for the buildings separately. There was one other buyer interested in all three, but the seller went with them in the end. HRA Commissioner Young asked about the effect of putting $1.77 million on the project and whether they would still be able to fund other projects. Community Development Director Poehlman noted the Spending Plan Fund is the most flexible of all their funds and would allow funding for commercial development. She noted the Spending Plan Funds must be committed by the end of 2025 and spent by the end of 2026. The opportunity cost is that spending the money here would not allow them to spend it elsewhere. As a part of the strategic plan, there is a priority for Richfield to be an affordable place to live. City Council Work Session Minutes -3- January 14, 2025 HRA Commissioner Young asked whether raising and lowering the levy is a big deal for the city. Community Development Director Poehlman explained that it is about setting the budget. City Manager Rodriguez added that cutting the levy would be very difficult. Mr. Krsnak noted the most important thing is to get the 4d taxes, followed by getting assistance with the repairs. Mr. Krasnak noted at this time it is uncertain how many repairs are required to qualify for 4d taxes, and noted they need City assistance. Mayor Supple noted the benefit of stabilizing affordable housing so people are not displaced from their housing by rising rents. Mayor Supple expressed concern regarding the potential impact to senior citizens on a fixed income. Mayor Supple requested clarification on how different taxing jurisdictions might be affected. Councilmember Hayford Oleary stated the amount requested seems like a very large subsidy and creates an impact on the tax base long-term. He added there are other projects he would like to see the money be used for. Mr. Errigo discussed the issues he raised about the rent market. HRA Commissioner Hanson noted the risk of setting a precedent that other NOAH properties would seek the same 4d taxes. Community Development Director Poehlman explained there has been an increase in inquiries because of the drop to the .25 rate. She added she does not believe this would set a precedent. HRA Commissioner Hanson inquired about how funds would be allocated in a potential partnership, specifically whether they would be spent on cosmetic updates or on infrastructure like electrical, plumbing, etc. Mr. Krsnak explained that their approach begins with safety and security, followed by addressing heating and boiler systems, roofing, windows, and energy efficiency. Cosmetic changes are considered only after these critical improvements. Community Development Director Poehlman briefly discussed the next steps in the process, ADJOURNMENT Mayor Supple adjourned the work session at 6:55 pm. Date Approved: January 14, 2025 Mary B. Supple Mayor Michelle Friedrich Katie Rodriguez City Clerk City Manager CALL TO ORDER The meeting was called to order by Mayor Supple at 7:03 p.m. in the Council Chambers. Council Members Present: Mary Supple, Mayor; Sharon Christensen; Walter Burk; Sean Hayford Oleary; and Rori A. Coleman-Woods. Staff Present: Katie Rodriguez, City Manager; Mary Tietjen, City Attorney; Melissa Pohlman, Community Development Director, Kristin Asher, Public Works Director; Jamie Haefner, Human Resources Manager; and Michelle Friedrich, City Clerk. Others Present: PLEDGE OF ALLEGIANCE Mayor Supple led the Pledge of Allegiance. OPEN FORUM Mayor Supple reviewed the participation options for residents at the Council meeting including in- person comments, comments by voicemail or email, and an option to request to participate virtually with advance notice. Mayor Supple noted more information on submitting comments can be reviewed at www.richfieldmn.gov/citycouncil. No residents participated in the Open Forum public comment opportunity. APPROVAL OF MINUTES MOTION: made by Hayford Oleary, seconded by Christensen to approve the minutes of the (1) City Council Work Session of December 10, 2024; and (2) Regular City Council Meeting of December 10, 2024. Motion carried: 5-0 CITY COUNCIL MEETING MINUTES Richfield, Minnesota Regular Council Meeting January 14, 2025 City Council Meeting Minutes -2- January 14, 2025 ITEM #1 APPROVAL OF AGENDA Mayor Supple noted a request to pull item K from the consent agenda. MOTION: made by Christensen, seconded by Coleman-Woods to approve the agenda with item K of the consent agenda pulled for further discussion. Motion carried: 5-0 ITEM #2 CONSENT CALENDAR City Manager Rodriguez presented the consent calendar. A. Consider Annual Designation of Mayor Pro Tempore, Council Representatives, and Acting City Manager. (Staff Report No. 1) B. Consider the approval of the first reading of an ordinance updating requirements for maintenance of fowl and birds and schedule a public hearing and second reading for January 28, 2025. (Staff Report No. 2) C. Consider a resolution designating an official newspaper for 2025. (Staff Report No. 3) RESOLUTION NO. 12288 RESOLUTION DESIGNATING AN OFFICIAL NEWSPAPER FOR 2025 D. Consider approval of Cannabis and Substance Use Prevention (CSUP) funding from the Minnesota Department of Health. (Staff Report No. 4) E. Consider approval for a Temporary On-Sale Intoxicating Liquor license for the Blessed Trinity Catholic School, located at St. Richard's Catholic Church, 7540 Penn Avenue South, for their 2025 Sno*ball Dance taking place February 1, 2025. (Staff Report No. 5) F. Consider a Grant Compliance Agreement with Penn StationApartments, LLLP regarding a Livable Communities DemonstrationAccount Pre-Development Grant for 6501-6525 PennAvenue South. (Staff Report No.6) G. Consider a resolution of support for a grant application to MnDOT'S Safe Routes to School Infrastructure grant program for a sidewalk project on streets adjacent to Sheridan Hills Elementary School. (Staff Report No. 7) RESOLUTION NO. 12289 RESOLUTION OF SUPPORT FOR SHERIDAN HILLS ELEMENTARY SCHOOL SAFE ROUTES TO SCHOOL INFRASTRUCTURE FUNDING APPLICATION City Council Meeting Minutes -3- January 14, 2025 H. Consider a resolution of support for Richfield's application for federal funding for a reconstruction project on 77th Street via the United States Department of Transportation (USDOT) Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Grant Program. (Staff Report No. 8) RESOLUTION NO. 12290 RESOLUTION OF SUPPORT FOR THE 77th STREET SAFETY & MULTI-MODAL IMPROVEMENTS PROJECT THROUGH THE USDOT REBUILDING AMERICAN INFRASTRUCTURE WITH SUSTAINABILITY AND EQUITY (RAISE) GRANT PROGRAM APPLICATION I. Consider a resolution authorizing the City of Richfield to accept grant funds in the amount of $10,000.00 and enter into a Source Water Protection Grant Agreement with the Minnesota Department of Health (MDH) to seal a non-municipal community water supply well; and Authorizing the City to enter into a Cooperative Agreement with Woodlawn Terrace Cooperative to assist with the sealing of their 'out of service' community water supply well. (Staff Report No. 9) RESOLUTION NO. 12291 RESOLUTION AUTHORIZING THE CITY OF RICHFIELD TO ACCEPT GRANT FUNDS IN THE AMOUNT OF $10,000.00 AND ENTER INTO A SOURCE WATER PROTECTION GRANT AGREEMENT (SWIFT CONTRACT NUMBER 261258) WITH MINNESOTA DEPARTMENT OF HEALTH TO SEAL A NON-MUNICIPAL COMMUNITY WATER SUPPLY WELL J. Consider approval of the bid tabulation and authorize the Mayor and City Manager to execute a contract with Visu-Sewer for the 2025 Sanitary Sewer Cured-in-Place-Pipe (CIPP) Lining Project in the amount of $1,034,497.00, and authorize the City Manager to approve contract changes up to $175,000 without further City Council consideration. (Staff Report No. 10) K. Consider resolutions designating official depositories for the City of Richfield for 2025, including the approval of collateral. (Staff Report No. 11) This item was removed from the consent agenda. MOTION: made by Christensen, seconded by Hayford Oleary to approve the consent calendar items 2A-J, noting item 2K was removed for further discussion under Item 3, Items Removed From Consent Calendar. Mayor Supple noted the second reading on January 28 for item 2B. Mayor Supple requested information regarding the permit fee, safeguards, and other information in the staff report, to be shared with the Council. Motion carried: 5-0 ITEM #3 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT CALENDAR City Manager Rodriguez presented the item removed from the consent calendar. City Council Meeting Minutes -4- January 14, 2025 K. Consider resolutions designating official depositories for the City of Richfield for 2025, including the approval of collateral. (Staff Report No. 11) Mayor Supple noted that due to a conflict of interest from Councilmembers, these items will be considered with an individual roll call vote. MOTION: made by Hayford Oleary, seconded by Christensen to adopt resolutions designating official depositories with the understanding that the City could not invest in any of the depositories beyond the level of insurance coverage or the pledged collateral. RESOLUTION NO. 12292 RESOLUTION DESIGNATING U.S. BANK A DEPOSITORY OF FUNDS FOR THE CITY OF RICHFIELD FOR THE YEAR 2025 RESOLUTION NO. 12293 RESOLUTION DESIGNATING CERTAIN SAVING AND LOAN ASSOCIATIONS, BANKS, AND CREDIT UNIONS AS DEPOSITORIES FOR THE DEPOSIT AND INVESTMENT OF CITY FUNDS IN 2025 RESOLUTION NO. 12294 RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF RICHFIELD FUNDS IN 2025 Voting aye: Coleman-Woods, Supple, Christensen, Hayford Oleary Voting nay: Abstain: Burk Motion carried: 4-0-1 ITEM #4 CONSIDER APPROVAL OF THE SECOND READING OF AN ORDINANCE AMENDING CITY CODE SECTION 550: FLOODPLAIN MANAGEMENT REGULATIONS AND APPROVAL OF A RESOLUTION AUTHORIZING SUMMARY PUBLICATION. (STAFF REPORT NO. 12) Council Member Hayford Oleary presented Staff Report 12. MOTION: made by Hayford Oleary, seconded by Coleman-Woods to approve the second reading of an ordinance amending city code Section 550: an ordinance amending Chapter V of the Richfield code of ordinances pertaining to floodplain management regulations; and approve the resolution authorizing summary publication. Mayor Supple asked if they have many floodplains in Richfield. Public Works Director Asher noted that Richfield does not have much floodplain but there is a small amount on the corner by Taft Park. City Council Meeting Minutes -5- January 14, 2025 BILL NO. 2024-16 AN ORDINANCE AMENDING SECTION 550, CHAPTER V OF THE RICHFIELD CODE OF ORDINANCES PERTAINING FLOODPLAIN MANAGEMENT REGULATIONS RESOLUTION NO. 12295 RESOLUTION APPROVING SUMMARY PUBLICATION OF AN ORDINANCE UPDATING FLOODPLAIN MANAGEMENT REGULATIONS AMENDING SECTION 550, CHAPTER V OF THE CITY CODE Motion carried: 5-0 ITEM #5 CONSIDER A FIRST READING OF AN ORDINANCE AMENDMENT REGARDING DRIVE-THROUGH SIGNS. (STAFF REPORT NO. 13) Council Member Coleman-Woods presented Staff Report 13. Councilmember Hayford Oleary noted he has no concerns about this specific issue but does have concerns about the dynamic displays throughout the City. Councilmember Hayford Oleary noted there is no enforcement of what can be displayed on the signs. Councilmember Hayford Oleary suggested allowing additional signs for business, but only one display sign. Mayor Supple asked for more clarification on what Councilmember Hayford Oleary’s concern. Councilmember Hayford Oleary explained he would like one dynamic sign per business, either on the business building or menu sign. Councilmember Hayford Oleary added the drive-through sign ordinance amendment implies that of all the businesses in Richfield, only one would be prevented from converting their menu board. Council Member Hayford Oleary noted adopting this change would prevent a similar business from also making a dynamic sign on their main sign if they chose to do the menu board. Community Director Pohlman noted Councilmember Hayford Oleary’s comment of an ordinance proposal of limiting signs to one. Brian Davis, local business owner, indicated they have no concerns over this. Mr. Davis noted they have found that many cities where they have applied for menu boards have the same code in place where only one dynamic sign is allowed per property. Mayor Supple shared her concerns about implementing onerous regulations on the signage and noted Y-split signs and questioned if this type of sign would be excluded from the ordinance. Community Director Pohlman noted staff would revise the ordinance and strike letter J from section 4, and identify and define order boards signs, and include dynamic displays that would be allowed at business drive-through locations. MOTION: made by Hayford Oleary, seconded by Coleman-Woods to amend the ordinance regarding drive-through signs to remove the exception as described. Motion carried: 5-0 MOTION: made by Coleman-Woods, seconded by Christensen to approve the first reading of an ordinance amendment regarding drive-through signs as amended. City Council Meeting Minutes -6- January 14, 2025 Motion carried: 5-0 ITEM #6 CONSIDER ADOPTION OF A RESOLUTION APPROVING THE CONTRACT WITH TEAMSTERS #320 (SERGEANTS) BARGAINING UNIT FOR THE PERIOD JANUARY 1, 2024 THROUGH DECEMBER 31, 2025 AND AUTHORIZE THE CITY MANAGER TO EXECUTE THE AGREEMENT. (STAFF REPORT NO. 14) Councilmember Christensen presented Staff Report 14. City Manager Rodriguez thanked HR Manager Haefner and the Teamsters sergeant’s union stewards. HR Manager Haefner noted the contract with the Teamsters is the final contract for 2024 and 2025. She discussed that there were five contracts, and this was the final one. Councilmember Burk asked for more details regarding the specialty pay. City Manager Rodriguez explained the specialty pay is for officers and sergeants. City Manager Rodriguez explained the different assignments where specialty pay applies. Mayor Supple thanked both parties of the negotiation. MOTION: made by Christensen, seconded by Hayford Oleary to approve a resolution approving the contract with Teamsters #320 (Sergeants) bargaining unit for the period January 1, 2024, through December 31, 2025, and authorize the City Manager to execute the agreement. RESOLUTION NO. 12296 RESOLUTION APPROVING LABOR AGREEMENT BETWEEN THE CITY OF RICHFIELD AND TEAMSTERS #320 (SERGEANTS) BARGAINING UNIT FOR YEARS 2024-2025 Motion carried: 5-0 ITEM #7 CITY MANAGER’S REPORT City Manager Rodriguez noted no reports at this time. ITEM #8 CLAIMS AND PAYROLL MOTION: made by Christensen, seconded by Hayford Oleary to approve the following claims and payroll: U.S. BANK 12/20/2024 A/P Checks: Included in 1/9/2025 total City Council Meeting Minutes -7- January 14, 2025 Payroll 12/20/2024: 193302-193627; 44118-44119* manual checks $1,053,733.59 TOTAL $1,053,733.59 U.S. BANK 01/09/2025 A/P Checks 12/6/2024-1/9/2025: 333287-334004 $4,225,636.89 Payroll 1/3/2025: 193628-193948; 44120* manual check $1,292,910.55 TOTAL $5,518,547.44 Motion carried: 5-0 ITEM #9 HATS OFF TO HOMETOWN HITS Councilmember Hayford Oleary noted he has no items tonight. Councilmember Christensen note appreciation to the city crew for the amazing work of keeping the roads safe. Councilmember Burk thanked staff for their patience with the new members of Council. Councilmember Coleman-Woods thanked the Public Works Department which handled the water main break in Ward 3. Councilmember Coleman-Woods also recognized Richfield High School player CJ Armstrong, who reached 2,000 points scored in his athletics activity. Mayor Supple expressed appreciation to the recreation staff for the Candlelight and Ice event at Woodlake Nature Center. Mayor Supple encouraged everyone to participate next year. Mayor Supple commended the students and Mr. Willis of the Richfield Middle School Newspaper for their excellence in producing and executing their work, including the interview they conducted with her for the school paper. ITEM #10 ADJOURNMENT MOTION: made by Christensen, seconded by Coleman-Woods to adjourn the meeting at 7:47 p.m. Motion carried: 5-0 Date Approved: January 28, 2025 Mary Supple Mayor Michelle Friedrich Katie Rodriguez City Clerk City Manager AGENDA SECTION:CONSENT CALENDAR AGENDA ITEM #3.A. STAFF REPORT NO. 15 CITY COUNCIL MEETING 1/28/2025 REPORT PREPARED BY:Jennifer Anderson, Support Services Manager DEPARTMENT DIRECTOR REVIEW:Jay Henthorne, Director of Public Safety/Chief of Police 1/10/2025 OTHER DEPARTMENT REVIEW: CITY MANAGER REVIEW: Katie Rodriguez, City Manager 1/22/2025 ITEM FOR COUNCIL CONSIDERATION: Consider the approval of a first reading of an ordinance amendment pertaining to City Code Section 925.01 - Public Nuisances Subd. 2. EXECUTIVE SUMMARY: In October 2023, the City Council approved an ordinance relating to managed natural landscapes and a new maintenance standard of grass height from 6" to 8" per state law. City Code Section 925.01 Subd.2 (g) also refers to the 6" maximum grass height. This section of code was overlooked in the initial passing of the ordinance change. RECOMMENDED ACTION: By motion: Approve the first reading of an amendment to City Code section 925.01 Subd. 2(g) changing the grass height from 6" to 8" to comply with State law. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT In October 2023, the City Council approved an ordinance relating to managed natural landscapes and a new maintenance standard of grass height from 6" to 8" per state law. City Code Section 925.01 Subd.2 (g) also refers to the 6" maximum grass height. This section was overlooked in the initial passing of the ordinance change. B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS This is standard city business relating to a city code update to comply with State law. C.POLICIES (resolutions, ordinances, regulations, statutes, exc): Chapter 9 addresses public nuisances and maximum grass height for properties. D.CRITICAL TIMING ISSUES: N/A E.FINANCIAL IMPACT: N/A F.LEGAL CONSIDERATION: The City Attorney has reviewed the change and approved of its contents. ALTERNATIVE RECOMMENDATION(S): The recommended update to city code will align with State law when fully approved. PRINCIPAL PARTIES EXPECTED AT MEETING: ATTACHMENTS: Description Type Grass height Ordinance 1 0 = 1 " " RC160\3\751810.v1 RC160\3\751810.v1 RC160\3\751810.v1 BILL NO. _____ AN ORDINANCE AMENDING SECTION 925 OF THE RICHFIELD CODE OF ORDINANCES PERTAINING TO PUBLIC NUISANCES AND GRASS HEIGHT THE CITY OF RICHFIELD DOES ORDAIN: Section 1. Sub-section 925.01 Subd. 2 of the Richfield Code of Ordinances is hereby amended by adding the following double-underlined language and deleting the following struck-through language below: 925.01. – Public Nuisances Subdivision 2. Public nuisances affecting health. The following are declared to be nuisances affecting public health: (g) Poisonous plants including but not limited to poison ivy, poison oak, and ragweed, plants detrimental to health; and growth of weeds, grass, brush or other rank vegetation to a greater height than six (6) eight (8) inches on the average; and accumulations of dead weeds, grass or brush; Section 2. This ordinance will be effective in accordance with Section 3.09 of the City Charter. Adopted by the City of Richfield this ___ day of _________, 2025. Mary Supple, Mayor ATTEST: Michelle Friedrich, City Clerk AGENDA SECTION:CONSENT CALENDAR AGENDA ITEM #3.B. STAFF REPORT NO. 16 CITY COUNCIL MEETING 1/28/2025 REPORT PREPARED BY:Chris Link, Deputy Public Works Director DEPARTMENT DIRECTOR REVIEW:Kristin Asher, Public Works Director 1/21/2025 OTHER DEPARTMENT REVIEW: CITY MANAGER REVIEW: Katie Rodriguez, City Manager 1/22/2025 ITEM FOR COUNCIL CONSIDERATION: Consider authorizing the purchase of two Olympia Millenium E ice resurfacers for $250,000 in budget year 2025 and $89,626 in budget year 2026, totaling $339,626, from CTM Services, Inc., and authorize the City Manager to approve contract changes up to $175,000 without further City Council consideration. EXECUTIVE SUMMARY: The Ice Arena currently utilizes two Zamboni brand ice resurfacers for daily ice maintenance. After consideration of the following factors, staff is recommending a different model of ice resurfacer for purchase: Reliability of equipment; Availability of parts; and Feedback from ice arena staff in other municipalities. With the change in manufacturer, staff are recommending replacement of both ice resurfacers at the same time to ensure consistent service delivery (top-tier ice) from the operators for the arena's paying customers. The current Zamboni ice resurfacers were purchased in 2015 and 2019 and have planned replacement schedules of 2025 and 2029 respectively. We are requesting the replacement of the 2019 Zamboni sooner than originally planned for the following reasons: Pricing (inflation); Outside financial support for one of the units from Minneapolis Hockey Association; Delivery time increases. The vendor indicates a single machine would be delivered in 18-20 months rather than 12 months with the purchase of two; Operator skill, consistency, and familiarity gained by using two of the same machines; and Parts ordering, inventory, and service expertise required for two brands of machine rather than one. RECOMMENDED ACTION: By Motion: Authorize the purchase of two Olympia Millenium E ice resurfacers for $250,000 in budget year 2025 and $89,626 in budget year 2026, totaling $339,626, from CTM Services, Inc., and authorize the City Manager to approve contract changes up to $175,000 without further City Council consideration. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT Replacement schedules are set for each piece of equipment once purchased. The following are taken into consideration when deciding on when to replace vehicles: Year of purchase; Replacement date/depreciation; History and cost of repairs; and Technology upgrades. B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Purchase of these ice resurfacers will further Operational Excellence by ensuring that staff has the Operational capability to deliver essential services to all users of the Richfield Ice Arena. C.POLICIES (resolutions, ordinances, regulations, statutes, exc): When the purchase of materials, merchandise, equipment, or construction exceeds $175,000, authority to purchase shall be submitted to the City Council for consideration. While no contract changes are expected after this agreement is executed, staff is asking the City Council to give the City Manager authority to approve any contract changes in an effort to avoid City Council having to approve minor change orders should they arise. D.CRITICAL TIMING ISSUES: Approval at this meeting will ensure delivery of the ice resurfacers in the most timely manner. The build time for these machines has been quoted at 12 months. Both of the City's existing ice resurfacers are due for a major battery replacement. Approval of the purchase of new machines at this meeting will make the battery replacement irrelevant. E.FINANCIAL IMPACT: Staff solicited quotes for ice resurfacers from three vendors. CTM Services, Inc., was the only vendor able to supply the desired Olympia Millenium E machines. The approved 2025 budget includes $250,000 for this purchase. The revised 2025/proposed 2026 budget will include the remaining $86,626. The Ice Arena has secured an additional $125,000 towards this purchase from the Minneapolis Hockey Association which is being received in annual payments of $25,000 starting in 2024 and ending in 2028. F.LEGAL CONSIDERATION: None ALTERNATIVE RECOMMENDATION(S): None PRINCIPAL PARTIES EXPECTED AT MEETING: None ATTACHMENTS: Description Type Purchase Agreement 1 Contract/Agreement Purchase Agreement 2 Contract/Agreement Purchase Agreement # 1:CONFIDENTIAL Date: 1/8/25 Buyer: Richfield Ice Arena Seller:CTM Services, Inc. 636 E 66th St PO Box 17 Richfield, MN 55423 109 2nd Ave NE 612-861-9355 Lonsdale, MN. 55046 bbaltgalvis@richfieldmn.gov 507-744-4424 sales@ctm-services.com DESCRIPTION OF MACHINERY AND/OR BASE PRICE EQUIPMENT MANUFACTURER MODEL SERIAL NO.(US Dollars) Olympia Ice Resurfacer Resurfice Corp.Millennium-E At Delivery $159,985.00 DESCRIPTION: 2024 Olympia Millennium E Battery Powered Ice Resurfacer: Steel Construction to include: Steel Frame, 84" Galvanized Conditioner, Stainless Water Tanks, AC Electric Motors On All 4 Wheels, Automatic Snow Breaker, Automatic Towel Bar Lift, Board Brush, Seat Belt, Back-Up Alarm, 6" Offset Conditioner, Reversible Auger System, Adjustable Traction Control, Wash Water System,Tire Wash, Front & Rear Guide Wheels, 4 Wheel Hydraulic Disk Brakes, Adjustable Traction Control, Full Instrumentation, Complete Lighting Package Includes Bin Light, Backup Light, Steering Wheel Knob, Safety Seat Shut Off, Aluminum Alloy Wheels includes Full-size Spare Wheel and Tire. Includes 4 New Ice Shaving Blades. Basic Tool Kit and Hydraulic Jack. Full Manual & training videos, On-site Delivery, Full Setup and Training for Staff at the Arena. 2 Year Full Warranty (includes Parts, Service Labor, and Travel), 5 Year Full Battery Warranty. OPTIONS AND PRICE ADD TO BASE ACCESSORIES (U.S. DOLLARS)ACCEPT DECLINE PRICE Battery Upgrade (Lithium-Ion)$10,356.00 X Battery Upgrade (Sealed Lead/Acid)$8,729.00 X Stainless Steel Conditioner *$4,543.00 X included in package below Speed Related Flood Water System *$2,933.00 X included in package below Automatic Water Fill Systems *$4,490.00 X included in package below Stainless Steel Flood Pipes *$529.00 X included in package below Snow Bin Liner *$1,095.00 X included in package below LVR Ice Leveling System $22,293.00 X Advertising Racks $1,030.00 X Snap Fast Blade Change System $22,000.00 X Flashing Amber Warning Lamp $604.00 X Extra Blades 84" (+$50 for Fast Blades)$552.00 X Auger Washout System $550.00 X Special Paint Colors $1,380.00 X Full Stainless Chassis (* is included in package) $22,293.00 X $22,293.00 X -$20,000.00 New machines are built as per customer order and specifications. Duty & Brokerage Fee:$1,895.00 By placing the order now you can lock in at todays pricing. Shipping & Handling:$3,140.00 These prices are good for 30 days from date this quote. Total Price:$167,313.00 The undersigned Buyer purchases the machinery and/or equipment described above from Seller subject to the terms and conditions stated. Buyer agrees to pay the total price as indicated below. Total Price $167,313.00 Less Deposit (20% Due upon ordering)$32,455.60 Taxes (All taxes are the responsibility of the buyer)$0.00 Total Unpaid Balance Due Upon Delivery $134,857.40 Terms and Conditions set forth on the first page and/or the following pages constitute a part of this agreement. This agreement is not binding until signed by Seller. Buyer hereby acknowledges receipt of a completed and filled-in copy of this Agreement before signing. BUYER: Richfield Ice Arena SELLER: CTM SERVICES, INC. By:________________________________By:_____________________________________________ Title:________________________________Title:____________________________________________ Date:________________________________Date:___________________________________________ *Note with the purchase of two new Millennium E machines CTM will be providing a New Battery Olympia Edger at no cost to the customer Trade in of current Resurfacer? *note this is an estimated value pending no major damage at time of pick up. 2019 Zam 552AC Purchase Agreement # 2:CONFIDENTIAL Date: 1/8/25 Buyer: Richfield Ice Arena Seller:CTM Services, Inc. 636 E 66th St PO Box 17 Richfield, MN 55423 109 2nd Ave NE 612-861-9355 Lonsdale, MN. 55046 bbaltgalvis@richfieldmn.gov 507-744-4424 sales@ctm-services.com DESCRIPTION OF MACHINERY AND/OR BASE PRICE EQUIPMENT MANUFACTURER MODEL SERIAL NO.(US Dollars) Olympia Ice Resurfacer Resurfice Corp.Millennium-E At Delivery $159,985.00 DESCRIPTION: 2024 Olympia Millennium E Battery Powered Ice Resurfacer: Steel Construction to include: Steel Frame, 84" Galvanized Conditioner, Stainless Water Tanks, AC Electric Motors On All 4 Wheels, Automatic Snow Breaker, Automatic Towel Bar Lift, Board Brush, Seat Belt, Back-Up Alarm, 6" Offset Conditioner, Reversible Auger System, Adjustable Traction Control, Wash Water System,Tire Wash, Front & Rear Guide Wheels, 4 Wheel Hydraulic Disk Brakes, Adjustable Traction Control, Full Instrumentation, Complete Lighting Package Includes Bin Light, Backup Light, Steering Wheel Knob, Safety Seat Shut Off, Aluminum Alloy Wheels includes Full-size Spare Wheel and Tire. Includes 4 New Ice Shaving Blades. Basic Tool Kit and Hydraulic Jack. Full Manual & training videos, On-site Delivery, Full Setup and Training for Staff at the Arena. 2 Year Full Warranty (includes Parts, Service Labor, and Travel), 5 Year Full Battery Warranty. OPTIONS AND PRICE ADD TO BASE ACCESSORIES (U.S. DOLLARS)ACCEPT DECLINE PRICE Battery Upgrade (Lithium-Ion)$10,356.00 X Battery Upgrade (Sealed Lead/Acid)$8,729.00 X Stainless Steel Conditioner *$4,543.00 X included in package below Speed Related Flood Water System *$2,933.00 X included in package below Automatic Water Fill Systems *$4,490.00 X included in package below Stainless Steel Flood Pipes *$529.00 X included in package below Snow Bin Liner *$1,095.00 X included in package below LVR Ice Leveling System $22,293.00 X Advertising Racks $1,030.00 X Snap Fast Blade Change System $22,000.00 X Flashing Amber Warning Lamp $604.00 X Extra Blades 84" (+$50 for Fast Blades)$552.00 X Auger Washout System $550.00 X Special Paint Colors $1,380.00 X Full Stainless Chassis (* is included in package) $22,293.00 X $22,293.00 X -$15,000.00 New machines are built as per customer order and specifications. Duty & Brokerage Fee:$1,895.00 By placing the order now you can lock in at todays pricing. Shipping & Handling:$3,140.00 These prices are good for 30 days from date this quote. Total Price:$172,313.00 The undersigned Buyer purchases the machinery and/or equipment described above from Seller subject to the terms and conditions stated. Buyer agrees to pay the total price as indicated below. Total Price $172,313.00 Less Deposit (20% Due upon ordering)$33,455.60 Taxes (All taxes are the responsibility of the buyer)$0.00 Total Unpaid Balance Due Upon Delivery $138,857.40 Terms and Conditions set forth on the first page and/or the following pages constitute a part of this agreement. This agreement is not binding until signed by Seller. Buyer hereby acknowledges receipt of a completed and filled-in copy of this Agreement before signing. BUYER: Richfield Ice Arena SELLER: CTM SERVICES, INC. By:________________________________By:_____________________________________________ Title:________________________________Title:____________________________________________ Date:________________________________Date:___________________________________________ *Note with the purchase of two new Millennium E machines CTM will be providing a New Battery Olympia Edger at no cost to the customer Trade in of current Resurfacer? *note this is an estimated value pending no major damage at time of pick up. Zam 552 #11175 AGENDA SECTION:CONSENT CALENDAR AGENDA ITEM #3.C. STAFF REPORT NO. 17 CITY COUNCIL MEETING 1/28/2025 REPORT PREPARED BY:Chris Link, Deputy Public Works Director DEPARTMENT DIRECTOR REVIEW:Kristin Asher, Public Works Director 1/7/2025 OTHER DEPARTMENT REVIEW:Mike Dobesh, Fire Chief CITY MANAGER REVIEW: Katie Rodriguez, City Manager 1/22/2025 ITEM FOR COUNCIL CONSIDERATION: Consider authorizing the purchase of a Pierce Enforcer PUC Fire Pumper for $400,000.00 in budget year 2025 and $302,095.67 in budget years 2026, 2027, and 2028, totaling $1,306,287.00, from MacQueen Emergency Group, and authorize the City Manager to approve contract changes up to $175,000.00 without further City Council consideration. EXECUTIVE SUMMARY: The Richfield Fire Department (RFD) staff utilize four fire pumper vehicles on a daily basis. The vehicle to be purchased will be the primary truck housed at Fire Station #2 for all fire calls. Each fire pumper responds to over 1,700 calls (fire and medical) per year. The fire pumper being purchased will replace an existing fire pumper (unit #3791) that has reached the end of its useful lifespan. This fire pumper is scheduled to be replaced in 2025 but increased build times will prevent delivery of this vehicle in 2025. Staff has been informed from the vendor that build time will likely take 56 months. Replacement schedules are set for each piece of equipment and vehicle once purchased. Fire pumper replacement schedules have been set at roughly 16 years. The fire pumper to be replaced will be in service 18 years. The following are taken into consideration when deciding when to replace vehicles: Year of purchase Replacement date/depreciation schedule History of repairs Technology upgrades Mileage/hours of operation A task force comprised of fire line personnel and staff prepared specifications and reviewed proposals for this purchase. Because of the large total cost of this vehicle and time required to manufacture, the City will pay for the truck in part over budget years 2025 to 2028. RECOMMENDED ACTION: By Motion: Approve the purchase of a Pierce Enforcer PUC Fire Pumper for $400,000.00 in budget year 2025 and $302,095.67 in budget years 2026, 2027, and 2028, totaling $1,306,287.00, from MacQueen Emergency Group, and authorize the City Manager to approve contract changes up to $175,000.00 without further City Council consideration. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT See executive summary B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Purchase of this fire pumper will further Operational Excellence by ensuring that RFD has the Operational capability to deliver essential services to the entire Richfield community. C.POLICIES (resolutions, ordinances, regulations, statutes, exc): The City of Richfield currently purchases vehicles using cooperative sources. The Houston Galveston Area Council (HGAC) and Sourcewell Consortium Pricing (SCP) purchasing programs are two of these sources. The fire pumper Chassis and body will be purchased through the HGAC, of which MacQueen Emergency Group is a vendor. When the purchase of materials, merchandise, equipment, or construction exceeds $175,000, authority to purchase shall be submitted to the City Council for consideration. While no contract changes are expected after this agreement is executed, staff is asking the City Council to give the City Manager authority to approve any contract changes in an effort to avoid City Council having to approve minor change orders should they arise. D.CRITICAL TIMING ISSUES: Approval of this purchase at this City Council meeting will ensure delivery of the vehicle in mid-2028. MacQueen Emergency Group indicated in its proposal that the manufacturer would be increasing it's pricing by 7% after February 1, 2025. In order to lock in the $1,306,287 rate for the fire pumper, it must be approved at the January 28th City Council meeting. E.FINANCIAL IMPACT: The 2025 Approved Budget includes $400,000 towards the purchase of the fire pumper, and the balance of the fire pumper will be budgeted in the 2026, 2027, and 2028 budget cycles. Payments are being extended throughout the manufacturing time of the fire pumper to take burden off the Central Garage budget in future years. City Council will be approving future payments for the fire truck which will be included in upcoming budget proposals. F.LEGAL CONSIDERATION: The City Attorney will be available to answer questions. ALTERNATIVE RECOMMENDATION(S): Staff could be directed to purchase an electric fire pumper. The following City approved planning documents call for introduction of electric vehicles into the fleet where practical: Comprehensive Plan Climate Action Plan Strategic Plan Macqueen Emergency group put forth an option to purchase an electric fire pumper that would be available for delivery in 1.5 years at a price of $2,350,159. While staff do believe this vehicle would increase fire fighter safety, have lower operating costs, and fulfill City Council directives, staff is not recommending the purchase of an electric fire pumper based on price alone. PRINCIPAL PARTIES EXPECTED AT MEETING: Mike Dobesh, Fire Chief ATTACHMENTS: Description Type Pierce Pumper Proposal Exhibit ILLINOIS INDIANA MINNESOTA MISSOURI NEBRASKA NORTH DAKOTA SOUTH DAKOTA EM-102 October 25, 2024 Fire Chief Mike Dobesh City of Richfield 6700 Portland Ave S Richfield, MN 55318 Subject: Proposal for one (1) Pierce Enforcer PUC Pumper Proposal / Bid 1133 Dear Fire Chief Dobesh, With regard to the above subject, please find attached our completed proposal. Pricing, is as follows, including 100% prepay option. Pricing Summary: Sale Price – $1,306,287.00 *Houston-Galveston Area Council (HGAC) Consortium Pricing. 100% Performance Bond: Included in the above sale price. 100% Prepayment Option: Should the City of Richfield elect to make 100% prepayment twelve (12) months prior to final inspection, a discount of ($54,457.00) can be subtracted from the above “Sale Price” resulting in a revised contract price of $1,251,830.00. Terms and Conditions: Taxes – Not Applicable Freight – F.O.B. – Appleton, WI / Shipping to Richfield, MN Terms – Net due prior to vehicle(s) release at the Pierce Manufacturing Plant (Appleton, WI). Net due twelve (12) months prior to Final Inspection for Prepay discount to be applicable. Delivery* – 47.5 – 50.5 months from receipt and acceptance of contract. *Due to global supply chain constraints, any delivery date contained herein is a good faith estimate as of the date of this order/contract, and merely an approximation based on current information. Delivery updates will be made available, and a final firm delivery date will be provided as soon as possible. ILLINOIS INDIANA MINNESOTA MISSOURI NEBRASKA NORTH DAKOTA SOUTH DAKOTA Said apparatus and equipment are to be built and shipped in accordance with the specifications hereto attached, delays due to strikes, war, or international conflicts, or other causes beyond our control not preventing, could alter the delivery schedule. The specifications herein contained, shall form a part of the final contract, and are subject to changes as desired by the purchaser, provided such changes are acknowledged and agreed to in writing by the purchaser. Various state or federal regulation agencies (e.g., NFPA, DOT, EPA) may require changes to the Specifications and/or the Product and in any such event any resulting cost increases incurred to comply therewith will be added to the Purchase Price to be paid by the Customer. Any future drive train upgrades (engine, transmission, axles, etc.) or any other specification changes have not been calculated into our annual increases and will be provided at additional cost. The Company reserves the right to update pricing in response to manufacturer-imposed increases as a result of PPI inflation. The Company will document and itemize any such price increase for the Customer’s review and approval before proceeding. Should the customer choose not to accept the pricing update, the customer has the ability to cancel without penalty. This proposal for fire apparatus conforms with all Federal Department of Transportation (DOT) rules and regulations in effect at the time of bid, and with all National Fire Protection Association (NFPA) Guidelines for Automotive Fire Apparatus as published at the time of bid, except as modified by customer specifications. The attached proposal is valid for thirty (30) days. We trust the above and the enclosed to be full and complete at this time; however, should you have any questions or require additional information, please do not hesitate to contact me at 920-450-4094 or brad.white@macqueengroup.com . We wish to thank the City of Richfield for the opportunity to submit our proposal. Respectfully, Brad White Brad White Apparatus Sales MacQueen Equipment LLC DBA MacQueen Emergency Group AGENDA SECTION:PROPOSED ORDINANCES AGENDA ITEM #5. STAFF REPORT NO. 18 CITY COUNCIL MEETING 1/28/2025 REPORT PREPARED BY:Ruby Villa, Planner I DEPARTMENT DIRECTOR REVIEW:Melissa Poehlman, Community Development Director 1/22/2025 OTHER DEPARTMENT REVIEW: CITY MANAGER REVIEW: Katie Rodriguez, City Manager 1/22/2025 ITEM FOR COUNCIL CONSIDERATION: Consider a second reading and summary publication of an ordinance amendment regarding drive-through signs. EXECUTIVE SUMMARY: Border Foods (Applicant) proposes to replace their existing menu board sign at Taco Bell (7740 2nd Avenue South) with a dynamic display. The Zoning Code currently does not address dynamic display drive-through signs. The Sign Code permits only one dynamic display sign per property and limits the area of the dynamic display to no more than 35 percent of the sign area. In practice, these regulations can make it difficult for existing drive-through uses to convert their existing drive-through signs to digital displays. The Applicant has thus requested an ordinance amendment that would establish regulations specifically for dynamic drive-through signs. Currently, the Zoning Code only addresses drive-through signs within the conditional uses section of the Mixed-Use Districts. “Order boards” are limited to 40 square feet and 8 feet in height, and they must be located within 60 feet of the business which they serve. Although drive-up uses are also allowed conditionally in the C-2 District, there is no mention of “order boards” within the listed conditions in that District. For consistency and clarity, staff proposes moving order board regulations to the sign section of the Code and reclassifying them as drive-through signs. This would be in keeping with cities in the metro area, such as Bloomington, Golden Valley, and White Bear Lake, that define drive-through or menu board signs and have separate regulations and/or exemptions for them. In regard to dynamic display regulations, staff is proposing certain exemptions for drive-through signs, as described in the policy section below. With new advancements in technology - that often make it difficult to tell the difference between static and digital menu boards - there is merit in updating and modernizing the Zoning Code to allow drive-through uses to convert their existing drive-through signs to digital. The Planning Commission held a public hearing on December 9. The Commission recommended approval of the ordinance amendment as proposed. A first reading was approved by the Council on January 14, with an amendment limiting dynamic signs to either a single freestanding sign or drive-through signs. This change has been incorporated into the proposed ordinance. RECOMMENDED ACTION: By motion: 1. Approve a second reading of an ordinance amendment regarding drive-through signs, and 2. Approve a resolution authorizing summary publication of said ordinance. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT The dynamic display section of the Zoning Code was added in 2007. While it has had some minor updates since then, it does not address dynamic drive-through signs. “Order board” regulations were added to the Mixed-Use Districts in 2015. Because these regulations were not added to the sign section of the Code, it is not entirely clear whether "order boards" are allowed in addition to maximum sign regulations. Staff identified 17 properties throughout the City that provide drive-up window or teller service, six of which are not fast-food restaurants or coffee shops (see the included Attachment “A”). Although this amendment is primarily aimed at addressing drive-through signs for fast food uses, the manner of the ordinance will allow any use that provides drive up window or teller service to install a drive-through sign. Limiting the ordinance to only allow “menu boards” could be considered content-based regulation – which is generally considered unconstitutional. Of sign permits on file, staff compiled a list of drive-through sign heights and sizes throughout the City: Property Address Use Type Height Area Dynamic?Year of Permit Issuance 1601 66th St E - Caribou Coffee shop 6' 7"38 sq ft No 2021 6545 Lyndale Ave S - Caribou Coffee shop 6' 7"38 sq ft No 2021 6645 Lyndale Ave S - McDonalds Fast food 5' 11"20 sq ft1 Yes - special PUD approval 2019 980 78th St W – Panera Bread Fast food 5' 11"35 sq ft No 2017 2800 66th St W - Dairy Queen Fast food 7' 3"38 sq ft No 2007 7740 2nd Ave S - Taco Bell Existing Fast food 7' 2"44 sq ft No 2013 7740 2nd Ave S - Taco Bell Proposed Fast food 6' 1"25 sq ft Yes - AVERAGE (not including Taco Bell’s proposed sign) 6’ 7”35.5 sq ft Two primary drive-through signs (one per lane) were permitted at McDonalds, each 20 square feet. Two smaller drive-through signs were also permitted per lane, each 10 square feet. A total of 60 square feet of drive-through sign area was allowed. B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Strategic Outcomes: While the amendment does not support a specific strategic outcome, it does allow drive-through businesses to modernize operations. It also helps to reduce the burden on fast food workers who would otherwise have to manually change the messaging, particularly during the winter months. Equity Considerations: Drive-throughs serve as an important option for people with disabilities to access retailers. This amendment could help to improve and modernize their drive-through experience. C.POLICIES (resolutions, ordinances, regulations, statutes, exc): Section 537.05, Subd. 5 establishes the conditions that must be met for Class III restaurants or drive-up window or teller service uses in the Mixed-Use Community and Mixed-Use Regional Districts. “Order board” regulations are included within these conditions. Staff proposes removing "order board" regulations from this section, as explained in the executive summary. Section 549 of the Zoning Code contains the City’s sign regulations. The following is a discussion of the proposed ordinance amendment to establish regulations for drive-through signs. For exact language, see the ordinance attached. To Create a definition for drive-through sign which references the specific language used by the Code to refer to what would conventionally be thought of as a drive-through; “uses which provide drive-up window or teller service” (Section 534.07, Subd. 7 and Section 537.05, Subd. 5). Reorganize the freestanding size and height sign regulations table for commercial, mixed use, and industrial districts, and move the size and height regulations for additional freestanding signs from a footnote to the “main” table. Remove language regarding size increases for Planned Unit Developments (PUD), which is redundant as a deviation from the Code and would require separate approval and would be regulated by the PUD section of the Code. Include a footnote regarding drive-through signs, allowing up to two per drive-up lane. While staff only identified one fast food restaurant with more than one drive-up lane (McDonalds), and not more than one drive-up lane is allowed in the mixed-use districts, more than one lane is allowed in the C-2 District. Allow two drive-through signs not to exceed a total of 50 square feet in area. A singular sign may not exceed 32 square feet in area and 8 feet in height. Staff finds it reasonable to allow two signs per drive-up lane, but to limit total square footage to already established sign area and height limits for additional freestanding signs. The limitation of a single sign is based on existing drive-through signs in the City, as well as drive-through sign regulations in neighboring cities. Of note, it would appear that dynamic display drive-through signs are typically smaller than static ones. This may be because static drive- through signs need to accommodate entire menus or order information within the sign area, while digital drive-through signs are capable of changing menus automatically throughout the day. As a type of freestanding sign, drive-through signs would not be exempt from maximum freestanding sign area, which varies depending on the amount of lot frontage that a property has. Provide a partial exemption for the following dynamic display requirement: § Section 549.25, Subd. 2, b: § “Only one (1) dynamic display sign is permitted on any individual site;” – At the January 14 meeting, the Council asked that the exemption for this requirement be modified. The specific language for the exemption has been changed (see attached ordinance) to allow a drive-through business to have multiple dynamic drive- through signs but to prohibit a drive-through business from having both a dynamic drive-through sign and a primary dynamic display. This would prevent drive-through businesses that have an existing primary dynamic display (currently one out of 11 fast food drive-throughs) from updating their menu or preview boards to digital without the removal of the existing dynamic display. In the future, it would also prevent drive-throughs from installing a primary dynamic display if they have already installed dynamic drive-through signs. Provide full exemptions for the following dynamic display requirements: § Section 549.25, Subd. 2, a: § “Dynamic displays are allowed only on monument and pylon signs for nonresidential uses in the residential districts and for all uses in other districts. Dynamic displays may occupy no more than 35 percent of the actual copy and graphic area, must be contiguous to the static copy and graphic area, and must include an enclosing framework of not less than three (3) inches around the dynamic display. The remainder of the sign must not have the capability to have dynamic displays even if not used. Only one (1) contiguous dynamic display area is allowed on a sign face, except when installed as part of a scoreboard for public parks and public or private schools;” – The nature of digital drive-through signs require that 100% of the sign be dynamic. Digital drive-through signs also often have separate “panels” within the same sign, creating non- dynamic. Digital drive-through signs also often have separate “panels” within the same sign, creating non- contiguous dynamic displays. § § Section 549.25, Subd. 2, c: § “A dynamic display may not change or move more often than once every 60 seconds, except one (1) for which changes are necessary to correct hour-and-minute, date, or temperature information. Time, date or temperature information is considered one (1) dynamic display and may not be included as a component of any other dynamic display. A display of time, date, or temperature must remain for at least 60 seconds before changing to a different display, but the time, date, or temperature information itself may change no more often than once every three (3) seconds;” – Many digital drive-through signs now have the capability of displaying a customer’s order directly on the screen. Customers can see additions and changes to their order in real time as they communicate with an employee through the exterior loudspeaker. They are also able to see their order total. These types of instantaneous changes would not comply with the 60 second rule. Staff finds an exemption to this rule reasonable as well. The concern for driver distraction is less when it is likely that changes to the drive-through sign would not be noticeable to vehicles in adjacent roadways. All other sign and dynamic display regulations would apply, such as the general sign setback of 5 feet from all property lines, the required 100-foot separation between dynamic displays and residential properties, and the brightness standards contained in Section 549.25, Subd. 3. Aside from the removal of order board regulations from the Mixed-Use Districts, this amendment would not affect the approval process for a drive-through use itself. Drive-through uses are, and will continue to be, conditional in all zoning districts that they are allowed in (C-2, MU-C, MU-R). The conditions that must be met for a drive-through use to be established already preemptively address many of the concerns that would arise for a drive-through sign. D.CRITICAL TIMING ISSUES: The 60-day clock ‘started’ when a complete application was received on November 13, 2024, and would have ended on January 12, 2025. As the second reading of the ordinance is scheduled for January 28, the City would not be able to render a decision in time to meet the 60-day deadline. Staff has notified the applicant that the City is exercising its right to extend the deadline for issuing a decision by an additional 60 days (120 days total). A decision is required by March 13, 2025. Extensions beyond 120 days require written consent and approval from the applicant. E.FINANCIAL IMPACT: None, all application fees have been paid. F.LEGAL CONSIDERATION: Notice of the public hearing was published in the Sun Current newspaper as required. A first reading of the ordinance was approved on January 14, 2025, with an amendment regarding the exemption for Section 549.25, Subd. 2, item b. ALTERNATIVE RECOMMENDATION(S): Approve the ordinance amendment with additional changes. Deny the ordinance amendment and direct staff to reconsider one or more aspects. PRINCIPAL PARTIES EXPECTED AT MEETING: None. ATTACHMENTS: Description Type Drive-Through Signs Ordinance Amendment Ordinance Summary Publication Resolution Resolution Letter Attachment A: Drive-Through Uses Throughout the City Backup Material Page 1 of 4 BILL NO. _____ AN ORDINANCE AMENDING THE RICHFIELD ZONING CODE REGULATIONS RELATED TO DRIVE-THROUGH SIGNS THE CITY OF RICHFIELD DOES ORDAIN: Section 1 Subsection 537.05 of the Richfield Zoning Code (Conditional Uses) is amended at Subdivision 5, to read as follows: Subd. 5. Restaurant Class III or Drive-Up Window or Teller Service. Uses with drive-up window or teller service provided the following conditions are met: a) A minimum distance of 500 feet must be maintained between substantially similar uses with drive-up window or teller service (as measured from property line to property line); b) Uses with drive-up window or teller service may not be located adjacent to a property with an existing drive-up window or teller service unless an applicant can demonstrate that the use will not be detrimental to pedestrian, bicycle or vehicle movements; c) No drive-up window or lane shall be adjacent to a public street; d) Drive-up uses shall be limited to one (1) service window which is part of a primary structure and a single queuing lane and order board/station: (i) The content portion of order boards is limited to 40 square feet; (ii) Order board content may not extend above eight (8) feet in height on the supporting structure; (iii) Order boards/stations must be located within 60 feet of the business which they serve. e) The City may consider one (1) additional service lane for automated teller machines (ATMS) or similar facilities; f) Drive-up facilities must be designed to minimize impacts to the pedestrian environment and adequately address circulation issues and potential noise or light pollution; g) Drive-through canopies and other structures, where present, shall be constructed from the same materials as the primary building and with a similar level of architectural quality and detailing; h) There shall be no curb cuts on public streets exclusively for the use of drive-up queuing or exit lanes. Drive-up traffic shall enter and exit from internal circulation drives; i) Queuing space for at least four (4) cars (70 feet) shall be provided as measured from, but not including, the first drive-up service window or teller station. Such queuing space shall not interfere with parking spaces or traffic circulation; j) Any drive-up service window, teller or order station, or exterior loudspeaker shall be located at least 150 feet from any parcel with residential uses on the first floor; k) The applicant shall demonstrate that such use will not significantly lower the existing level of service on streets and intersections; l) The City shall encourage operators to permit bicyclist use of sales and service windows; m) Alcoholic beverages shall not be served through a drive-up window; and Page 2 of 4 n) Exterior speakers shall comply with the noise control limits set by Subsection 930 of the City Code. (Amended, Bill No. 2015-1) (Amended, Bill No. 2025- ) Section 2 Subsection 549.05 of the Richfield Zoning Code (Sign Definitions) is amended as follows, with all following subdivisions renumbered accordingly: Subd. 11. “Drive-through sign.” A sign located in close proximity to a drive-up window or teller service lane located on the subject site. In no event shall a drive- through sign be located more than 60 feet from the business which it serves. (Added, Bill No. 2025-__) Section 3 Subsection 549.23 of the Richfield Zoning Code (Permitted Signs By District) is amended at Subdivision 2, to read as follows: Subd. 2. Commercial, Mixed-Use, and Industrial Districts. a) Within commercial, planned mixed use, mixed-use neighborhood, mixed-use community, mixed-use regional, and industrial zoning districts, one (1) freestanding signs per site is are permitted as follows 1 : District Total area of all freestanding signs Maximum sign area of single primary freestanding sign Maximum height Maximum sign area of additional freestanding sign/s (except drive- through signs)1 SO, C-1, MU-N 1 square foot per linear foot of lot frontage 60 square feet per surface, 15 feet tall 15 feet 50 square feet per surface, 8 feet tall C-2, MU-C, PMU Sites <1 acre 1 square foot per linear foot of lot frontage 100 square feet per surface, 20 feet tall2 20 feet 2 50 square feet per surface, 8 feet tall C-2, MU-C, PMU Sites 1-2 acres 1 square foot per linear foot of lot frontage 150 square feet per surface, 20 feet tall2 20 feet 2 50 square feet per surface, 8 feet tall Page 3 of 4 C-2, MU-C, PMU Sites >2 acres 1 square foot per linear foot of lot frontage 200 square feet per surface, 20 feet tall2 20 feet 2 50 square feet per surface, 8 feet tall I, MU-R 1 square foot per linear foot of lot frontage 250 square feet per surface, 27 feet tall2 27 feet 50 square feet per surface, 8 feet tall 1 Additional freestanding signs on a site shall not exceed 8 feet in height and 50 square feet in area. Planned Unit Development sites greater than 2 acres may request additional signs exceeding 8 feet in height and 50 square feet in area. For uses which provide drive-up window or teller service, up to two drive-through signs not to exceed a total of 50 square feet in area, are permitted per drive-up lane. A singular drive-through sign may not exceed 32 square feet in area and 8 feet in height. Drive-through signs shall not be exempt from the total area of all freestanding signs allowed on a property. (Amended, Bill No. 2025- ) 2 On properties abutting an interstate or state highway or the adjacent frontage road, one freestanding sign with a maximum height of 27 feet may be located within 100 feet of the lot line abutting the highway or frontage road. b)Within commercial, mixed-use neighborhood, mixed-use community, mixed-use regional, and industrial zoning districts, wall signs may not exceed 15 percent of the total wall area of the wall to which sign is attached. In the case of multiple occupancy, the total area of wall signs which each occupant may display shall not exceed 15 percent of the exterior wall of the portion of the building occupied by that tenant. (Amended, Bill No. 2011-13) (Amended, Bill No. 2025- ) c)Window signs that do not exceed 30 percent of the window area; d)Canopies, marquees, projecting signs and fixed awnings that are an integral part of the structure to which they are attached are allowed in the Ccommercial, Mmixed-Uuse, and Iindustrial districts if they meet the following requirements: i.An awning, canopy, marquee or projecting sign may not project into the public right-of-way; ii.Awnings, canopies, marquees and projecting signs may have no part of the structure other than supports nearer the ground surface than seven (7) feet; iii.The architectural style on the awning, canopy or marquee must be consistent with the building being served; iv.For the purposes of size limitation calculations, awning, canopy, marquee and projecting signs shall be counted as wall signs; v.Awnings, canopies or marquees projecting into required yards may not be enclosed; and vi.Awnings or canopies shall not be internally illuminated. e)Any sign not expressly permitted by this subdivision is prohibited in commercial, mixed-use and industrial districts. Page 4 of 4 f)Cannabis businesses shall also comply with applicable advertisement limitations imposed by Minnesota Statutes, section 342.64, as amended (Amended Bill No. 2024-__) Subd. 3. (Repealed, Bill No. 2011-13) Section 4 Subsection 549.25 of the Richfield Zoning Code (Dynamic Displays) is amended at Subdivision 2, to read as follows: Subd. 2. Regulations. Dynamic displays are allowed subject to the following conditions: a)thru i) no change j)Dynamic drive-through signs are exempt from Section 549.25, Subdivision 2, item b; provided that no other dynamic displays are present on the property. Dynamic drive-through signs are also exempt from Section 549.25, Subdivision 2, items a and c. (Amended, Bill No. 2025- ) Section 5 This Ordinance is effective in accordance with Section 3.09 of the Richfield City Charter. Passed by the City Council of the City of Richfield, Minnesota this 28th day of January, 2025. Mary B. Supple, Mayor ATTEST: Michelle Friedrich, City Clerk RESOLUTION NO. RESOLUTION APPROVING SUMMARY PUBLICATION OF AN ORDINANCE REGARDING DRIVE-THROUGH SIGNS WHEREAS, the City has adopted the above-referenced amendment of the Richfield City Code; and WHEREAS, the verbatim text of the amendment is cumbersome, and the expense of publication of the complete text is not justified. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield that the following summary is hereby approved for official publication: SUMMARY PUBLICATION BILL NO. AN ORDINANCE AMENDING THE RICHFIELD ZONING CODE REGULATIONS RELATED TO DRIVE-THROUGH SIGNS This summary of the ordinance is published pursuant to Section 3.12 of the Richfield City Charter. This ordinance amendment updates the City’s sign requirements in the following ways: Remove “order board” regulations from the Mixed-Use Districts. Create a definition for “drive-through sign” in the sign section of the code. Make a couple minor housekeeping changes such as reorganizing the freestanding sign size allowances table and removing redundant language. Allow two drive-through signs per drive-up lane and establish new size limitations: 32 square feet and 8 feet in height for a singular sign; 50 square feet for both signs. Provide dynamic display exemptions which would: allow dynamic drive-through signs (provided that no other dynamic displays are present on a property); allow dynamic drive- through signs to contain a dynamic display that is more than 35% of the area of the sign; allow dynamic drive-through signs to contain non-contiguous dynamic displays; and allow dynamic drive-through signs to change their messaging more often than once every 60 seconds. Copies of the ordinance are available for public inspection in the City Clerk’s office during normal business hours or upon request by calling the Department of Community Development at (612) 861-9760. Adopted by the City Council of the City of Richfield, Minnesota this 28th day of January, 2025. Mary B. Supple, Mayor ATTEST: Michelle Friedrich, City Clerk Attachment A Drive-throughs in Richfield Zoning District Number of drive-up lanes 1601 66th St E - Caribou PC-2 Planned General Commercial 1 96 66th St W - Burger King PC-2 Planned General Commercial 1 220 66th St W - Popeyes C-2 General Commercial 1 6545 Lyndale Ave - Caribou PC-2 Planned General Commercial 1 6500 Lyndale Ave S - Wendys C-2 General Commercial 1 6645 Lyndale Ave S - McDonalds PC-2 Planned General Commercial 2 980 78th St W - Panera PC-2 Planned General Commercial 1 6529 Penn Ave S - Dunkin MU-C Mixed Use Community 1 2800 66th St W - Dairy Queen C-2 General Commercial 1 6445 Nicollet Ave S – Wells Fargo Bank C-2 General Commercial 5 7740 2nd Ave S - Taco Bell MU-C Mixed Use Community 1 7744 5th Ave S - Arbys MU-R Mixed Use Regional 1 345 77th St E - My Credit Union MU-C Mixed Use Community 3 6540 Penn Ave - CVS PMU Planned Mixed Use 2 6544 Lyndale Ave S - Chase Bank PMU Planned Mixed Use 1 6625 Lyndale Ave S - BMO Harris Bank PC-2 Planned General Commercial 5 6501 Richfield Pkwy - Huntington Bank PC-2 Planned General Commercial 4 AGENDA SECTION:RESOLUTIONS AGENDA ITEM #6. STAFF REPORT NO. 19 CITY COUNCIL MEETING 1/28/2025 REPORT PREPARED BY:Julie Urban, Asst. Community Development Director DEPARTMENT DIRECTOR REVIEW:Melissa Poehlman, Community Development Director 1/22/2025 OTHER DEPARTMENT REVIEW: CITY MANAGER REVIEW: Katie Rodriguez, City Manager 1/22/2025 ITEM FOR COUNCIL CONSIDERATION: Consideration of a resolution supporting a 4d tax classification for Hempel Real Estate relating to the acquisition and preservation of three affordable rental communities. EXECUTIVE SUMMARY: Three Richfield apartment communities, New Orleans Court, Richland Court, and Winton House (Properties), were recently listed for sale. The Properties, containing a total of 236 units (current estimate of 477+ residents) are located along 77th Street at Wentworth, and on 14th and Cedar Avenues (see attached map). The Properties, built in the 1960s, are considered Naturally Occurring Affordable Housing, or NOAH properties. The buildings contain a mix of one, two, and three bedroom units, and rent levels are considered affordable to households earning between 50% and 60% of the Area Median Income (AMI). The Properties are currently home to 43 Housing Choice Voucher or Section 8 (HCV) households (73 residents) and five Kids@Home Program families (23 residents). Hempel Real Estate is seeking to purchase the Properties and maintain their affordability. Hempel is a local real estate firm that has acquired and preserved several NOAH communities over the past few years. Hempel would utilize equity from the Greater Minnesota Housing Fund's NOAH Impact Fund, which contributes equity to NOAH acquisitions in exchange for preserving affordability for 15 years. Hempel is requesting assistance from the City's Housing and Redevelopment Authority (HRA) to be able to ensure affordability, limit rent increases, and undertake rehabilitation work ($2.578 million). Hempel is seeking up to $1.77 million in financial assistance from the HRA in exchange for limiting rents and capping resident income levels, which would enable the Properties to qualify for 4d tax status (0.25% compared to a non- affordable apartment rate of 1.25%). The 4d(1) tax classification offers the Properties a combined annual savings estimated at $352,050 (using pay 2025 values and tax rates). An additional $3.88 million in upfront funding would be needed to make up for the savings this reduction in the tax rate provides to the property owner. On January 21, 2025, the HRA approved a Memorandum of Understanding (MOU) that lays out Hempel and the HRA's commitment to exploring HRA financial assistance for the project that includes providing a $1.57 million 15-year forgivable loan from the Affordable Housing Trust Fund (Trust Fund), $200,000 remodeling loan, rent and income limits at 60% of the AMI for one and two bedroom units and 70% of the AMI for three bedroom units, acceptance of rental assistance, and meeting(s) with property management and City staff. Three members of the community testified in support of the action during the HRA open forum. With the proposed financial assistance and restrictions, the property will qualify for the 4d tax classification, which provides a benefit to the property owner but shifts the tax burden to other taxpayers. If 4d is approved for the Properties, all taxing jurisdictions will have their tax capacity reduced by $278,432. To maintain the current levy amount, taxes will need to be raised on other properties. For example, the City taxes paid by the owner of the median-valued home would increase by an estimated $9.97 annually. The cost of the shift in the tax burden will, however, be offset by new tax capacity that will be added to the City's tax base in 2026 upon the de-certification of two Tax Increment Financing districts (TIF). Because the cost burden for the 4d tax classification reduces the City's tax capacity, the City Council is being asked to approve the use of the classification. Supporting the purchase of the Properties by a preservation-oriented buyer guarantees continued affordability for the Properties and offers many benefits to the residents and the community, including the following: housing stability for the 477+ residents, including no displacement of current residents; preservation of the affordability of larger apartment units, including 24 three bedroom and 132 two bedroom apartments; preservation of housing for 43 HCV and 5 Kids@Home households and continued partnership with a preservation-oriented owner to provide more deeply affordable housing opportunities for rental assistance clients, the majority of whom earn less than 30% of the AMI (80% of the current HCV residents in the Properties earn less than 30% of the AMI); an investment of up to $2.5 million in physical improvements to the aging buildings including safety and security, building mechanicals, roofs and windows, energy-efficiency measures, amenity improvements, paint, flooring, lighting, and kitchen upgrades, and local ownership with in-house property management services offering opportunities to partner for the benefit of residents. Failure to support a preservation-oriented buyer could result in the Properties being purchased by a market- rate buyer who could raise rents, displace residents, and/or displace rental assistance residents. According to the seller's broker, there were three other offers in the "best and final" round for purchase of the Properties, all of which were from groups seeking to "flip" (renovate and resell) the Properties. The broker stated that one of these offers would be accepted if Hempel is unable to move forward. RECOMMENDED ACTION: By Motion: Adopt a resolution approving the use of the 4d tax classification to support the preservation of affordability in and rehabilitation of three NOAH properties: New Orleans Court, Richland Court, and Winton House. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT In 2015, The Concierge (fka Crossroads at Penn) at 7700 Penn Avenue South was purchased, rehabilitated, and rents increased. While much-needed physical improvements were made to the aging complex, many people were displaced as a result of the ownership change and subsequent rent increases. On January 14, 2025, the HRA and City Council held a work session to discuss the request. Additional information was requested at the work session that is provided on the attached map of the Properties and in the Equity and Strategic and Financial Impact sections of this staff report. On January 21, 2025, the HRA approved an MOU that proposes the following terms, under which the HRA could provide financial assistance toward the purchase of the Properties: up to $1,570,000 in the form of a 15-year, forgivable, deferred loan; up to $200,000 in Apartment Remodeling Loans; rent and income limits in all one and two bedroom units at 60% AMI, qualifying the units for 4d tax classification status; rent and income limits in all three bedroom units at 70% AMI; acceptance of Section 8 and Kids@Home rental assistance, and required meeting(s) of property management and staff to share tenant/landlord resources and introduce Section 8, Kids@Home, and Public Safety staff. B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Preserving the City's NOAH apartment communities furthers the Strategic Plan goal to maintain Richfield as an affordable place to live. The City's rental housing is also occupied by a significant number of Black, Indigenous, and People of Color (BIPOC) residents and residents with lower incomes. Investing in housing stability is an investment in the health and vitality of these communities. While 43% of Richfield renters are considered "cost-burdened" and pay more than 30% of their income for housing, the 5-year American Community Survey (2019-2023) found that 22% of Richfield homeowners are as well. Approval of a tax shift could help one group in need, while hurting another. Approximately 35% of owner-occupied households (3,500) are age 65 or older; however, it is unknown how many of those that are 65 or older are also "cost-burdened." C.POLICIES (resolutions, ordinances, regulations, statutes, exc): Minnesota Statutes 273.128 provides a property tax break for affordable rental properties under the Low Income Rental Classification Program (LIRC), commonly referred to as the 4d program. The Class 4d property class rate is 0.25%, and the typical classification for rental housing is 1.25%. Affordable rental properties are eligible for the 4d tax classification when a property restricts at least 20% of the units at rents affordable at 60% of the AMI and when financial assistance is provided by federal, state or local government requiring these rent and income restrictions. D.CRITICAL TIMING ISSUES: Hempel recently signed the purchase agreement, is in the due diligence period, and anticipates closing on the properties within 60 to 90 days. Hempel will be required to submit earnest money in February and is looking for an indication from the HRA and City Council that they are in support of providing financial assistance before that time. Applications for 2026 4d property tax status are due to Minnesota Housing by March 31st. HRA consideration of a formal agreement will be scheduled for February if the Council approves use of the 4d tax classification. E.FINANCIAL IMPACT: The NOAH Impact Fund is providing over $8.7 million in equity to the acquisition and preservation of the Properties; however, a financial gap remains. High interest rates, high operating costs, the large number of units, modest rents, and limit to the amount of equity the NOAH Impact Fund can provide create the gap that Hempel is asking the HRA to fill with funds from the Trust Fund, Apartment Remodeling Loans, and with 4d tax status. $200,000 of the request can be provided with Apartment Remodeling Loans, funded from repayments of loans that were made to the current property owner. The remainder would be funded by the Trust Fund and 4d tax status. Following the due diligence period, which includes physical inspections of the Properties, a final determination of the amount needed will be made. There is a small amount of funds remaining in the Trust Fund, and additional funds are available ($2.8 million) in the Spending Plan fund that could be transferred to the Trust Fund for the assistance. The HRA has authority from the Legislature until the end of 2026 to transfer pooled tax increment from three TIF districts to the Trust Fund. The HRA's financial consultant estimates that there will be additional funds available to transfer and replenish the Trust Fund. Ehlers, the City/HRA's financial consultant, reviewed the proposal and determined that, if the HRA were to provide the requested assistance, the returns on investment to Hempel would not exceed what is typical in the market. The returns are well below an average 10% return on equity over 20 years. The amount of per unit subsidy is similar to what the HRA has committed/is considering committing to other proposed all-affordable developments, Aster Commons and Penn Station. In both those cases, the projects are able to bring in state, federal, and private funding sources that are not available to this NOAH preservation. Those developments will also qualify for the 4d tax classification. The Properties' current rent levels and Net Operating Income (NOI) do not support the price being paid for the Properties, although the price is close to that of the Properties' assessed value. In the case of the Hempel bid, the HRA assistance and savings from the 4d tax classification fills the financial gap. According to the seller's broker, three other offers were under consideration by the seller. Due to confidentiality agreements, the seller's broker cannot disclose offer or amounts; however, she noted that all four "final and best" offers were similar. In the case of a market-rate developer, the only way to make these numbers work would be by converting the Properties to a higher class, and using increased rents to fill the financial gap. The Hennepin County Assessor felt confident that the methodology for establishing the current market value of the Properties was sound, especially given that there have been a number of comparable sales in the past couple of years. Forty-three HCV recipients reside in the Properties (out of 177 total HCV holders living in Richfield). If the Properties were to sell to a non-preservation buyer and rents raised, the loss of this housing for rent- assistance clients could impact the viability of the HCV program. Eighty percent of these HCV households earn less than 30% of the AMI. The 4d tax classification provides a benefit to the property owner but shifts the burden to other taxpayers. If 4d is approved for the Properties, all taxing jurisdictions will have their tax capacity reduced by $278,432. The City taxes paid by the owner of the median-valued home would increase by an estimated $9.97 annually. To avoid the additional tax burden on other properties, the City would need to lower its levy by a commensurate amount, which is unlikely given current budget constraints. There will be some impact from reduced tax capacity on other taxing jurisdictions as well. In the case of Hennepin County, the impact, however, is spread across a much larger tax base and is also impacted by 4d classifications in other communities. The school tax capacity is also larger than the City's, plus the amount levied on taxpayers is calculated differently, which makes the impact less direct. Schools also receive per pupil spending, so a potential loss of the 66 Richfield Public Schools (RPS) students in the event of a purchase that causes displacement could also have an impact on the school's budget. RPS was notified of the request. The increase in tax capacity anticipated in 2026 when two large TIF districts de-certify will offset the reduced tax capacity from the 4d tax classification. That benefit will be partially lessened, however, by a consequent reduction in Local Government Aid. An additional $3.88 million in up-front funding to Hempel would be necessary to make up for the benefit of the 4d tax classification. F.LEGAL CONSIDERATION: The NOAH Impact Fund requires 15 years of affordability, that a minimum of 40% of the units be affordable at 60% of the AMI and the remainder at 80% of the AMI, and that the property accept Housing Choice Vouchers. A Declaration of Restrictive Covenants will be filed against the Properties to memorialize the terms. If assistance is approved, staff would recommend that the HRA file its own Declaration requiring that all one and two bedroom units charge rents affordable at 60% AMI and three bedroom units affordable at 70% AMI and that units be restricted to households meeting those income requirements. The limits will be required for 15 years. Providing assistance and placing rent/income restrictions will make the Properties automatically eligible for the 4d tax classification. ALTERNATIVE RECOMMENDATION(S): Decide not to authorize the 4d tax classification and direct the HRA to not place rent/income restrictions on any assistance provided. PRINCIPAL PARTIES EXPECTED AT MEETING: Josh Krsnak, Hemple Companies ATTACHMENTS: Description Type Resolution Resolution Letter HRA Memorandum of Understanding Backup Material Map of properties Backup Material RC125-402-1000914.v1 RESOLUTION NO. ______ RESOLUTION AUTHORIZING THE USE OF 4d TAX CLASSIFICATION FOR RENTAL PROPERTIES LOCATED AT 50 WEST 78TH STREET, 1300-1324 EAST 78TH STREET AND 7500-7544 CEDAR AVENUE BY HEMPEL HOLDINGS, LLC, OR A SUBSIDIARY THEREOF WHEREAS, the City of Richfield, Minnesota (the “City”) has recently learned that there are three Naturally Occurring Affordable Housing properties (“NOAH”), containing 236 rental apartment units, up for sale in the City and a preservation buyer is interested in purchasing the properties; and WHEREAS, the NOAH properties consist of the New Orleans Court Apartments and Townhomes (located at 50 West 78th St), the Richland Court Apartments (located at 1300-1324 East 78th St), and the Winton House Apartments (located at 7500/7544 Cedar Ave); and WHEREAS, Hempel Holdings, LLC, a Minnesota limited liability company, or a subsidiary thereof (collectively, the “Redeveloper”), has submitted and had accepted an offer to and by the property owner to purchase the three NOAH properties; and WHEREAS, the Redeveloper is seeking to preserve and maintain the affordability of the NOAH properties and is using equity from the Greater Minnesota Housing Fund’s NOAH Impact Fund, which would contribute equity to the project in exchange for preserving affordability for 15 years; and WHEREAS, due to current market conditions, the Redeveloper needs additional funding in order to preserve the affordability of the units and undertake modest rehabilitation of the buildings and as a result has submitted a request for financial assistance to the City’s Housing and Redevelopment Authority (the “Authority”); and WHEREAS, on January 21, 2025, the Board of Commissioners of the Authority (the “Board”) approved a Memorandum of Understanding (the “MOU”) between the Authority and the Redeveloper, which sets forth the understanding of responsibilities of and actions to be taken by the Redeveloper and the Authority with respect to the purchase and redevelopment of the NOAH properties by the Redeveloper; and WHEREAS, the MOU sets forth the possibility of financial assistance in an amount of up to $1.77 million in exchange for the Redeveloper investing up to $2.5 million to rehabilitate the properties and maintaining rents and incomes affordable at 60% of the Area Median Income (AMI) for all one and two bedroom units and 70% of the AMI for all three bedroom units for a period 15 years; and WHEREAS, as a condition of financial assistance, the Authority would place a Declaration of Restrictive Covenants on the property requiring the affordability, and in exchange, the Redeveloper would be eligible for 4d tax classification for affordable housing; and WHEREAS, preserving the affordability of the NOAH properties is important to the community because it furthers the City’s Strategic Plan goal to maintain Richfield as an affordable place to live; and 2 RC125-402-1000914.v1 WHEREAS, preserving the affordability of the NOAH properties is important to the community because they contain 156 two and three bedroom rental units which provide valuable housing options for families with children, including school children; and WHEREAS, preserving the affordability of the NOAH properties is important to the community because they are currently home to 48 low-income households that receive rental assistance through programs operated by the Authority and in exchange for financial assistance the Redeveloper would agree to continue to rent to households who receive rental assistance; and WHEREAS, while the 4d tax classification for the NOAH properties will lower the City’s tax capacity, two tax increment financing districts will be decertified in 2026, which will increase the City’s tax capacity, offsetting the decrease; and WHEREAS, the City sees additional benefits to the residents and to the community, including the prevention of tenant displacement; the rehabilitation of the buildings, which are 50 to 60 years old, and local, in-house property management services, and NOW, THEREFORE, BE IT RESOLVED as follows: 1. The City Council authorizes the use of the 4d tax classification up to 15 years for the preservation of these NOAH properties. 2. The City Council supports the provision of financial assistance by the City’s Authority in exchange for rent and income restrictions on all one and two bedroom units at 60% of the AMI and on all three bedroom units at 70% of the AMI. 3. This resolution shall be in full force and effect upon its adoption. Adopted by the City Council of the City of Richfield, Minnesota this 28th day of January, 2025. Mary B. Supple, Mayor ATTEST: Michelle Friederich, City Clerk RC125-402-1000569.v3 WHEREAS, the Redeveloper is partnering with NOAH Impact Fund, a social impact fund organized by Greater Minnesota Housing Fund, a Minnesota non-profit corporation and Community Development Financial Institution, for the purpose of providing equity capital and preserving NOAH properties in the Twin Cities metro area; and WHEREAS, the term of this MOU will be six months after the date of execution, with an option to extend for six additional months with administrative approval from the Executive Director of the Authority; and WHEREAS, entering into this MOU, the Authority does not make any assurances to the Redeveloper regarding the feasibility of the proposed project and does not make assurances to the Redeveloper regarding the ultimate outcome of the proposed project; and RC125-402-1000569.v3 WHEREAS, the parties have executed this MOU to document their understanding with respect to the proposed redevelopment project; 2. Consider potential subsidies for the proposed project, including but not limited to funding from the Affordable Housing Trust Fund in the amount of up to $1,570,000, 4(d) tax status, and one or more apartment remodeling loans of up to $200,000. 3. The Authority agrees to explore the following potential subsidies: RC125-402-1000569.v3 E. Notices. Notice or demand or other communication between the parties shall be sufficiently given if sent by email, regular mail, postage prepaid, return receipt requested or delivered personally to the following addresses: As to the Authority: Housing and Redevelopment Authority in and for the City of Richfield, Minnesota 6700 Portland Avenue South Richfield, MN 55423 Attn: Melissa Poehlman, Executive Director As to the Redeveloper: Hempel Holdings, LLC 10500 Crosstown Cir, Suite 600 Eden Prairie, MN 55344 Attn: Josh Krsnak, CEO F. Not a Binding Agreement. Neither the Authority nor Redeveloper intend this MOU to be a binding agreement. This MOU does not constitute a development agreement. The Authority this MOU are limited to those responsibilities specifically set forth in Section B of this MOU. The Authority shall have no other implied obligations. (The remainder of this page is intentionally left blank.) RC125-402-1000569.v3 Chief Manager RC125-402-1000569.v3 LEGAL DESCRIPTION AGENDA SECTION:RESOLUTIONS AGENDA ITEM #7. STAFF REPORT NO. 20 CITY COUNCIL MEETING 1/28/2025 REPORT PREPARED BY:Jennifer Anderson, Support Services Manager DEPARTMENT DIRECTOR REVIEW:Jay Henthorne, Director of Public Safety/Chief of Police 1/8/2025 OTHER DEPARTMENT REVIEW: CITY MANAGER REVIEW: Katie Rodriguez, City Manager 1/22/2025 ITEM FOR COUNCIL CONSIDERATION: Violation hearing and consider a resolution regarding civil enforcement for establishments that recently underwent alcohol compliance checks conducted by Richfield Public Safety staff, and failed by selling alcohol to a person under the age of 21. EXECUTIVE SUMMARY: Alcohol compliance checks were conducted by Richfield Public Safety staff on November 14, 2024. Compliance checks are done to determine the availability of alcohol to people under 21 and meet State Statutes. There are currently 25 establishments in Richfield that hold licenses to sell alcohol. Three of the 25 establishments checked sold alcohol to an underage person. The action being taken today is for civil enforcement and penalties against these establishments. It is a first time offense for the following establishment: Joy's Pattaya Thai Restaurant, LLC d/b/a Joy's Pattaya Thai Restaurant, 7545 Lyndale Avenue South Resolution No. 9511 states if a second offense occurs outside of one (1) year of a the first offense, it will be considered a first offense. The following establishment previously failed on December 17, 2022, making this a first offense for Davanni's. Davanni's Inc. d/b/a Davanni's Pizza and Hot Hoagies, 6345 Penn Avenue South Resolution No. 9511 states if a second offense occurs outside of one (1) year of a the first offense, it will be considered a first offense. The following establishment previously failed on November 3, 2021, making this a first offense My Burger. My Burger Operations, LLC d/b/a My Burger, 6555 Lyndale Avenue South Establishments will be given an opportunity to admit they made an unlawful sale to an underage person and agree to the penalties imposed by the City Council, or deny the allegations and request a contested case hearing. The City Council will adopt a resolution imposing the penalties for establishments that admit to the violation. If the allegation is denied and a contested case hearing is requested, the City Council will refer the matter to an independent hearing examiner. Establishments will be notified of the hearing date and given the opportunity to present evidence and rebut the City’s evidence at the hearing. For a first time offense, Public Safety recommends the City Council follow the guidelines set forth in Resolution No. 9511. Suspend their license to sell alcohol for five (5) days. Pay a $1,000 civil fine. Meet with the Director of Public Safety to present a written action plan to ensure future compliance. Require a manager attend an alcohol compliance training and awareness presentation with costs paid by the establishment. The training must be conducted by a private firm and approved by Public Safety. RECOMMENDED ACTION: By motion: Approve the attached resolutions regarding civil enforcement for establishments that failed alcohol compliance checks by selling alcohol to an underage person. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT Alcohol compliance checks started in 1999 to determine the availability of alcohol to underage people and meet State Statute. Civil penalties imposed for failing alcohol compliance checks are an incentive for establishments to provide ongoing employee training. On November 14, 2024, Richfield Public Safety conducted alcohol compliance checks at 25 establishments in Richfield that sell alcohol and were assisted by two people, 18 and 19 years of age. The establishments that sold alcohol to underage youth are: Joy's Pattaya Thai Restaurant, LLC d/b/a Joy's Pattaya Thai Davanni's Inc. d/b/a Davanni's Pizza and Hot Hoagies My Burger Operations, LLC d/b/a My Burger B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Alcohol compliance checks are routine city business. C.POLICIES (resolutions, ordinances, regulations, statutes, exc): It is a violation of Minnesota State Statute to sell alcohol to a person under the age of 21. Resolution No. 9511 specifies certain improper conduct of alcohol license holders and delineates the progressive discipline that can be expected when violations occur, such as the sale of alcohol to an underage person. D.CRITICAL TIMING ISSUES: Fine and suspension requirements must be met by February 28, 2025. E.FINANCIAL IMPACT: The fine being recommended at this time is intended to recover 100% of the costs for conducting the compliance checks and to impose a financial penalty. F.LEGAL CONSIDERATION: The employee of each establishment that sold alcohol to a person under the age of 21 has been charged with Gross Misdemeanor Furnishing per state statute. ALTERNATIVE RECOMMENDATION(S): The Council may consider taking more or less severe action against the establishments that sold alcohol to an underage person; however, that would deviate from the guidelines set for progressive discipline in Resolution No. 9511. PRINCIPAL PARTIES EXPECTED AT MEETING: Representatives from each establishment will be present. They have been notified in writing of this requirement. ATTACHMENTS: Description Type Resolution Resolution Letter RESOLUTION NO. RESOLUTION SUSPENDING THE LIQUOR LICENSE FOR JOY’S PATTAYA THAI RESTAURANT, LLC d/b/a JOY’S PATTAYA THAI, 7545 LYNDALE AVENUE SOUTH AND IMPOSING A CIVIL PENALTY FOR FIRST TIME ALCOHOL COMPLIANCE FAILURE WHEREAS, Joy’s Pattaya Thai Restaurant, LLC d/b/a Joy’s Pattaya Thai Restaurant (“Licensee”) holds a Wine and 3.2 Malt Liquor License from the City of Richfield; and WHEREAS, on November 14, 2024, the City of Richfield Public Safety Department conducted a compliance check of the Licensee’s establishment and during the compliance check, an employee of the Licensee, sold alcohol to an underage person; and WHEREAS, this is their first alcohol compliance check failure; and WHEREAS, the Licensee appeared before the Richfield City Council on January 28, 2025, and admitted the violation and stipulated to the penalty imposed by this resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield as follows: 1. The Licensee’s Wine and 3.2 Malt Liquor licenses are hereby suspended for a period of five (5) consecutive days, commencing on a date to be determined by the Public Safety Director, but to take place within 30 days after their Council appearance. 2. A civil penalty of $1,000 is hereby imposed. On or before February 28, 2025, the Licensee shall deliver a check or money order payable to the City of Richfield in the amount of $1,000. 3. Meet with the Director of Public Safety by February 28, 2025, to present a written action plan to ensure future compliance. 4. A manager must attend alcohol compliance and sales awareness training conducted by a private firm, approved by Public Safety, with all costs paid by the establishment. Passed by the City Council of the City of Richfield this 28th day of January 2025. . __________________________ Mary Supple, Mayor ATTEST: ________________________ Michelle Friedrich, City Clerk RESOLUTION NO. RESOLUTION SUSPENDING THE LIQUOR LICENSE FOR DAVANNI’S INC. d/b/a DAVANNI’S PIZZA AND HOT HOAGIE’S, 6345 PENN AVENUE SOUTH AND IMPOSING A CIVIL PENALTY FOR FIRST TIME ALCOHOL COMPLIANCE FAILURE WHEREAS, Davanni’s Inc. d/b/a Davanni’s Pizza and Hot Hoagies (“Licensee”) holds a Wine and 3.2 Malt Liquor License from the City of Richfield; and WHEREAS, on November 14, 2024, the City of Richfield Public Safety Department conducted a compliance check of the Licensee’s establishment and during the compliance check, an employee of the Licensee, sold alcohol to an underage person; and WHEREAS, this is their first alcohol compliance check failure; and WHEREAS, the Licensee appeared before the Richfield City Council on January 28, 2025, and admitted the violation and stipulated to the penalty imposed by this resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield as follows: 1. The Licensee’s Wine and 3.2 Malt Liquor licenses are hereby suspended for a period of five (5) consecutive days, commencing on a date to be determined by the Public Safety Director, but to take place within 30 days after their Council appearance. 2. A civil penalty of $1,000 is hereby imposed. On or before February 28, 2025, the Licensee shall deliver a check or money order payable to the City of Richfield in the amount of $1,000. 3. Meet with the Director of Public Safety by February 28, 2025, to present a written action plan to ensure future compliance. 4. A manager must attend alcohol compliance and sales awareness training conducted by a private firm, approved by Public Safety, with all costs paid by the establishment. Passed by the City Council of the City of Richfield this 28th day of January 2025. . __________________________ Mary Supple, Mayor ATTEST: ________________________ Michelle Friedrich, City Clerk RESOLUTION NO. RESOLUTION SUSPENDING THE LIQUOR LICENSE FOR MY BURGER OPERATIONS, LLC d/b/a MY BURGER, 6555 LYNDALE AVENUE SOUTH AND IMPOSING A CIVIL PENALTY FOR FIRST TIME ALCOHOL COMPLIANCE FAILURE WHEREAS, My Burger Operations, LLC d/b/a My Burger (“Licensee”) holds a Wine and 3.2 Malt Liquor License from the City of Richfield; and WHEREAS, on November 14, 2024, the City of Richfield Public Safety Department conducted a compliance check of the Licensee’s establishment and during the compliance check, an employee of the Licensee, sold alcohol to an underage person; and WHEREAS, this is their first alcohol compliance check failure; and WHEREAS, the Licensee appeared before the Richfield City Council on January 28, 2025, and admitted the violation and stipulated to the penalty imposed by this resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield as follows: 1. The Licensee’s Wine and 3.2 Malt Liquor licenses are hereby suspended for a period of five (5) consecutive days, commencing on a date to be determined by the Public Safety Director, but to take place within 30 days after their Council appearance. 2. A civil penalty of $1,000 is hereby imposed. On or before February 28, 2025, the Licensee shall deliver a check or money order payable to the City of Richfield in the amount of $1,000. 3. Meet with the Director of Public Safety by February 28, 2025, to present a written action plan to ensure future compliance. 4. A manager must attend alcohol compliance and sales awareness training conducted by a private firm, approved by Public Safety, with all costs paid by the establishment. Passed by the City Council of the City of Richfield this 28th day of January 2025. . _________________________ Mary Supple, Mayor ATTEST: ________________________ Michelle Friedrich, City Clerk AGENDA SECTION:OTHER BUSINESS AGENDA ITEM #8. STAFF REPORT NO. 21 CITY COUNCIL MEETING 1/28/2025 REPORT PREPARED BY:Mark McKinley, Administrative Assistant DEPARTMENT DIRECTOR REVIEW: OTHER DEPARTMENT REVIEW: CITY MANAGER REVIEW: Katie Rodriguez, City Manager 1/22/2025 ITEM FOR COUNCIL CONSIDERATION: Consider appointment to fill a vacancy on the Sustainability Commission. EXECUTIVE SUMMARY: Terms of several City advisory board and commission members expire on January 31, 2025. Terms for advisory board and commissions are for three years. The City Council directs the City Manager’s office to conduct an annual recruitment seeking applicants to fill the vacancies. This recruitment includes a press release and information on the City’s website and social media platforms. Applicants were interviewed at a work session held on November 16, 2024. The Sustainability Commission had an unexpected resignation after all positions were filled. During the recruitment process, Council designated alternate candidates as there were not enough open positions for all applicants. The alternate applicant was reviewed and approved by Council. RECOMMENDED ACTION: By motion: Approve appointment of Alexa Wozniak as Sustainability Commissioner commencing on January 28, 2025 and expiring January 31, 2026. BASIS OF RECOMMENDATION: A.HISTORICAL CONTEXT This information is contained in the executive summary. B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS Maintaining a full commission roster allows for a diverse range of perspectives to be shared during each commission meeting. Maintaining a full roster allows for more flexibility in instances where a quorum is needed to conduct official business. C.POLICIES (resolutions, ordinances, regulations, statutes, exc): City advisory board and commissions were established by City ordinance or resolution. D.CRITICAL TIMING ISSUES: It is advisable to appoint a replacement to ensure quorum at meetings. E.FINANCIAL IMPACT: None F.LEGAL CONSIDERATION: None ALTERNATIVE RECOMMENDATION(S): None PRINCIPAL PARTIES EXPECTED AT MEETING: