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2025-05-13 Council Regular MinutesCALL TO ORDER The meeting was called to order by Mayor Supple at 7:00 p.m. in the Council Chambers. Council 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; and Michelle Friedrich, City Clerk; Jennifer Anderson, Support Services Manager; Jay Henthorne, Police Chief. Others Present: STEM School Choir, Richfield School Board Treasurer Ken Liss PLEDGE OF ALLEGIANCE Mayor Supple led the Pledge of Allegiance. ITEM #1 PRESENTATION: STEM SCHOOL CHOIR (MOVED FROM PRESENTATIONS TO FOLLOW PLEDGE OF ALLEGIANCE) Mayor Supple invited the STEM School Choir to perform. ADDED ITEM: ANNUAL FOOD SAFETY AWARDS Mayor Supple noted the addition of the Food Safety Awards to the agenda. Mayor Supple introduced Support Services Manager Jennifer Anderson to present the food safety awards. Support Services Manager Anderson explained the nomination and voting process and presented the two award winners, Broadway Pizza for the full-service restaurant award, and Dairy Queen on East 66th Street for the fast-food pizza cafeteria service award. Support Services Manager Anderson also shared the restaurants that received nominations. CITY COUNCIL MEETING MINUTES Richfield, Minnesota Regular Council Meeting May 13, 2025 City Council Meeting Minutes -2-May 13, 2025 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. Phou Sivilay, 6226 Fifth Avenue South, stated he has run a short-term rental property. Mr. Sivilay stated he does realizes there are issues with rentals, but opined they are more isolated issues rather than broad ones. Lance Bondus, 7108 Chicago Avenue, shared information regarding his short-term rental property and how the regulations affect it. He opined regulation of rentals will decrease the number of people who are able to visit the City. He would like to see the Council step back from the planned ordinance and draft an updated version with the feedback given. John Lucas Erikson, 7014 Elliot, noted many rental owners book out reservations far in advance. Mr. Erikson noted his rental property is booked for the next 18 months and would like Council to taken into consideration when making a decision. City Clerk Friedrich read a comment sent by email from Tung Thanh Le. Mr. Le opined on short- term rental regulations and noted the regulations seemed unnecessary for many reasons. City Clerk Friedrich read a comment from Noi Keothammakhoun regarding issues related to banning short-term rentals. Mr. Keothammakhoun noted the management company he uses to manage his rental, screens each guest, enforces quiet hours, and lives nearby. Mr. Keothammakhoun requested that Council not ban short-term rentals. City Manager Rodriguez read a comment sent by email from Nancy Stoddard opposing the short- term rental ban. Ms. Stoddard also listed reasons for not wanting to restrict stays. City Manager Rodriguez read an email sent anonymously thanking Richfield for initiating compliance action against Pump and Munch. APPROVAL OF MINUTES MOTION: made by Council Member Hayford Oleary, seconded by Council Member Burk to approve the minutes of the: (1) City Council Work Session Meeting from April 22, 2025, and (2) City Council Regular Meeting from April 22, 2025. Motion carried: 5-0 ITEM #2 PRESENTATION: PROCLAMATION CELEBRATING JEWISH AMERICAN HERITAGE MONTH City Council Meeting Minutes -3-May 13, 2025 Mayor Supple read aloud the proclamation for Jewish American Heritage Month and presented the proclamation to Mr. Kenneth Liss. Ken Liss thanked the City for recognizing Jewish American Heritage Month. ITEM #3 PRESENTATION: PROCLAMATION NATIONAL POLICE WEEK/PEACE OFFICER’S MEMORIAL DAY Mayor Supple read aloud the proclamation National Police Week/Peace Officer’s Memorial Day and presented the proclamation to Police Chief Henthorne. Chief Henthorne thanked the community for its support and thanked the staff for their daily work. He recognized the families who are going to DC to have their family members' names etched into the marble in the memorial and offered them his thoughts and prayers. ITEM #4 APPROVAL OF AGENDA MOTION: made by Council Member Hayford Oleary, seconded by Council Member Christensen, to approve the Agenda as presented. Motion carried: 5-0 ITEM #5 CONSENT CALENDAR City Manager Rodriguez presented the consent calendar. A.Consider approval of an annual request for a Temporary On-Sale Intoxicating Liquor license for the Academy of Holy Angels, located at 6600 Nicollet Avenue South, for their annual Holy Angels Rock the Lawn event taking place Friday, June 13, 2025. (Staff Report No. 54 B.Consider approval to set a public hearing to be held on May 27, 2025, to consider the issuance of new OnSale Wine and 3.2 Percent Malt Liquor licenses for MC Richfield LLC dba Dragon Pot, located at 9 66th Street East. (Staff Report No.55) C.Consider approval of the Cannabis and Substance Use Prevention (CSUP) services agreement with Bloomington Public Health. (Staff Report No. 56) D.Consider the approval of an agreement with the City of Bloomington for the provision of food, pools, lodging, therapeutic massage, and body art establishment inspection services for the City of Richfield for 2026. (Staff Report No. 57) E.Consider approval of the bid tabulation and authorize the Mayor and City Manager to execute a contract with New Look Contracting Inc., for the 70th Street Safe Routes to School project in the amount of $624,672.75, and authorize the City Manager to approve contract changes up to $175,000 without further City Council consideration. (Staff Report No.58) City Council Meeting Minutes -4-May 13, 2025 F.Consider adoption of a resolution accepting a Safe Routes to School Infrastructure grant from the Minnesota Department of Transportation (MnDOT) for intersection improvements along 64th Street and Russell Avenue in the area of Sheridan Hills Elementary. (Staff Report No. 59) RESOLUTION NO. 12318 RESOLUTION AUTHORIZING THE CITY OF RICHFIELD TO ACCEPT A SAFE ROUTES TO SCHOOL INFRASTRUCTURE GRANT FROM THE MINNESOTA DEPARTMENT OF TRANSPORTATION G. Consider approval of a Maintenance Agreement with Nine Mile Creek Watershed District (NMCWD) that defines ownership and maintenance responsibilities for certain stormwater infrastructure in and surrounding Adams Hill Pond. (Staff Report No. 60) H.Consider approval of an agreement with Loeffler Construction LLC to perform construction management services for improvements to Veterans Memorial Park, including the Richfield Public Pool, and Ice Arena. (Staff Report No. 61) I.Richfield 4th of July Committee celebration license application (Staff Report No. 62) MOTION: made by Council Member Coleman-Woods, seconded by Council Member Burk, to approve the consent calendar. Motion carried: 5-0 ITEM #6 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT CALENDAR None. ITEM #7 CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE 90-DAY SUSPENSION OF A TOBACCO LICENSE ISSUED TO LYNDALE PUMP N MUNCH, LOCATED AT 6300 LYNDALE AVE S. FOR EGREGIOUS FLAVORED PRODUCT AND UNDERAGE SALES VIOLATIONS. THE RECOMMENDED SUSPENSION DATES ARE MAY 13, 2025, THROUGH AUGUST 11, 2025. ALONG WITH THE SUSPENSION OF THE TOBACCO LICENSE, ANY ADDITIONAL VIOLATIONS OF CITY CODE OR STATE LAW RELATING TO THE OPERATION OF THE BUSINESS OR THE SALE OF TOBACCO PRODUCTS BEFORE FEBRUARY 12, 2028, WILL RESULT IN IMMEDIATE REVOCATION OF THE LICENSE. (STAFF REPORT NO. 63) Council Member Hayford Oleary presented Staff Report 63. City Attorney Tietjen reported that the staff’s initial recommendation was revocation of the license. However, the licensee requested that the City consider a less severe penalty in the form of a license suspension. Following extensive discussion, the staff, with reservations, agreed to a 90-day suspension of the license. Council Member Hayford Oleary opened the public hearing. City Council Meeting Minutes -5-May 13, 2025 Mitchell Hadler, counsel for Lyndale Pump N Munch, acknowledged that his client is fully aware of the seriousness of the situation. He stated that his client accepts full responsibility for the violations and expressed sincere regret for the actions that led to them. Mr. Hadler requested that the Council consider allowing the business to continue operating under certain conditions that they are prepared to implement moving forward. He emphasized his client's desire for an opportunity to demonstrate their commitment to compliance and improvement. City Attorney Tietjen noted the licensee submitted a document of signatures in the form of a petition showing support for the business. MOTION: made by Council Member Hayford Oleary, seconded by Coleman-Woods to close the public hearing. Motion Carried: 5-0 Council expressed appreciation that the City Attorney was able to reach a resolution in this matter. Council noted this is the fourth violation occurring under the current ownership at this location, which is deeply concerning. Council shared parents in the community have expressed concern regarding the products sold at the Lyndale Pump N Munch location, and that business compliance is expected if the business desires to stay in operation in Richfield. Council and staff discussed training for businesses out of compliance, with staff noting when there is a tobacco compliance failure, there is a fine and a suspension. Staff also noted there is no training for tobacco in the State of Minnesota. Council stated concern with the repeated violations and adherence to all applicable laws hereafter. MOTION: made by Council Member Hayford Oleary, seconded by Council Member Coleman- Woods, to adopt a resolution authorizing the 90-day suspension of a tobacco license issued to Lyndale Pump N Munch, located at 6300 Lyndale Avenue South, for egregious flavored product and underage sales violations, with recommended suspension dates are May 13, 2025, through August 11, 2025. Along with the suspension of the tobacco license, any additional violations of City code or state law relating to the operation of the business or the sale of tobacco products before February 12, 2028, will result in immediate revocation of the license. RESOLUTION NO. 12319 FINDINGS AND DECISION RELATED TO THE SUSPENSION OF THE TOBACCO LICENSE OF LYNDALE PUMP N’ MUNCH (DBA “PUMP N’ MUNCH”) LOCATED AT 6300 LYNDALE AVENUE SOUTH, RICHFIELD, MINNESOTA Motion carried: 5-0 ITEM #8 CONSIDER A FIRST READING OF AN ORDINANCE RESTRICTING SHORT- TERM RENTALS. (STAFF REPORT NO. 64) Council Member Burk presented Staff Report 64. Community Development Director Poehlman summarized the previous Council short-term rental discussions and reviewed why the City wants to limit short-term rentals to properties where a license holder is onsite. MOTION: made by Council Member Burk, seconded by Mayor Supple, to approve the first reading of an ordinance restricting short-term rentals to no less than one month unless the rental license holder resides on the site. City Council Meeting Minutes -6-May 13, 2025 Council noted the initial concerns prompting the Council’s consideration of short-term rental regulations had stemmed from properties with high turnover and very short stays and typically lasting one to two nights. Council noted minimum stays of one week versus one-month minimums. MOTION TO AMEND: made by Council Member Hayford Oleary, seconded by Christensen to amend the language in the short-term rental ordinance to include no less than a one week minimum stay (7 days), and strike out no less than one month, within the original motion. Council discussed lack of compliance regarding the Americans with Disabilities Act (ADA) and regulation of short-term rentals, debated one-month stays versus one week stays, noted future licensing options, the advantages of the 3% lodging tax, egregious short-term rental properties, and effective date of the ordinance. Voting Aye: Christensen, Coleman-Woods, and Hayford Oleary Voting Nay: Burk, Supple Council Member Burk and Mayor Supple supported a one-month minimum stay. Motion Carried: 3-2 The Council and staff engaged in a discussion regarding the effective date of the ordinance. Staff explained that short-term rental licenses are issued on an annual basis and are not pro-rated, which may result in increased licensing costs for certain properties. Staff also indicated that an amendment to the effective date could be introduced at the ordinance’s second reading. Council and staff discussed the lodging tax and the challenges of collecting the lodging fee tax for the short-term rental properties and difficulty of enforcement. Council discussed short-term rental application processes and including information on submitting the lodging fee tax. Staff expressed concern about the potential challenges associated with enforcing a one-week minimum stay requirement and noted the City will not be changing inspection procedures for enforcing ADA compliance, as there is currently no mechanism in place to do so. Staff noted reviewing ways to publish the tourism tax information more broadly and work with finance on that process, and encourage short-term property owners to make efforts to comply with ADA accessibility. Council and staff discussed inspections that are completed for rental licenses and differences from a fire inspections of a hotel or motel. Council requested clarification from staff on the extent to which short-term rental operators are required to comply with the Americans with Disabilities Act (ADA), and to what extent the City has a legal obligation to ensure that license holders are meeting those requirements; and are these properties currently in violation for not being ADA compliant, or are they exempt due to the nature of their use. If they are in violation, does the City bear any legal responsibility to enforce compliance, or is this a matter that would be addressed between the individual who was denied access and the property owner. Council and staff discussed a more robust City Code section for ADA compliance for short-term rental properties, staffing challenges, enforcement, and realistic expectations of what staff is able to accomplish. MOTION WITH AMENDMENT: made by Burk seconded by Supple, to approve the first reading of an ordinance restricting short-term rentals to no less than one week (7 days), as amended, unless the rental license holder resides site. Motion Carried: 5-0 City Council Meeting Minutes -7-May 13, 2025 ITEM #9 CITY MANAGER’S REPORT City Manager Rodriguez noted that she has nothing to report. ITEM #10 CLAIMS AND PAYROLL MOTION: made by Council Member Coleman-Woods, seconded by Council Member Hayford Oleary, to approve the following claims and payrolls: U.S. BANK 05/09/2024 A/P Checks: 335842-336236 $1,711,805.91 Payroll: 196468-196789; Manual checks 44138-44142 $1,082,833.47 TOTAL $2,794,639.38 Motion carried: 5-0 ITEM #11 HATS OFF TO HOMETOWN HITS Council Member Coleman-Woods commended the Richfield High School baseball team for their efforts in organizing a 100-inning tournament fundraiser, recognizing their hard work and community spirit. She noted that the team successfully raised approximately $1,500 through the event. Council Member Christensen shared the annual Richfield High School senior art exhibit will be taking place at the community center. Council Member Hayford Oleary added that in the last budget for the concrete project, they had allocated more money for EDA updates to the sidewalks. Council Member Burk had nothing to report. Mayor Supple gave a hat's off to Council Member Hayford Oleary for becoming the District 5 representative to the Met Council Regional Land Use Advisory Committee. She also gave a hat's off to resident Monica Byron, who is a teacher in Richfield and was just elected to be the president of Education Minnesota. She also gave a hat's off to the Public Works Department for marking all lines safely for the future project. ITEM #12 ADJOURNMENT MOTION: made by Council Member Coleman-Woods, seconded by Council Member Burk, to adjourn the meeting at 8:47 p.m. Motion carried: 5-0 Date Approved: May 27, 2025 City Council Meeting Minutes -8-May 13, 2025 Mary Supple Mayor Michelle Friedrich Katie Rodriguez City Clerk City Manager