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11-22-1993CITY OF RICHFIELD, MINNESOTA REGULAR CITY COUNCIL MEETING November 22, 1993 MEMBERS PRESENT: Martin Kirsch, Mayor; Michael Sandahl; Susan Rosenberg; Russ Susag; and Don Priebe. STAFF PRESENT: James Prosser, City Manager; Steven Devich, Administrative Services Director; Thomas Ferber, City Clerk; Donald Fondrick, Community Services Director; Byron Wallace, Community Development Director; Jack Erskine, Public Safety Director; William Fillmore, Liquor Operations Director; and Corrine Heine, Assistant City Attorney. The meeting was called to order by Mayor Kirsch at 7:00 p.m. PRESENTATION OF COLORS AND PLEDGE OF ALLEGIANCE Mayor Kirsch led the audience in the Pledge of Allegiance. APPROVAL OF MINUTES Council Member Priebe requested that the second paragraph of page 2 of the November 8 City Council Meeting minutes be amended by replacing the word "editorial" with "letter to the editor". M/Sandahl, S/Susag to approve the minutes of the Re uc~ lar City Council Meeting of November 8, 1993 as amended; and the minutes of the Special City Council Closed Executive Session of November 10, 1993.. Motion carried 5-0. Item #1 OPPORTUNITY FOR PERSONS TO ADDRESS THE CITY COUNCIL ON ANY ITEM NOT' LISTED ON THE AGENDA. Mike Bruce, 6401 21st Avenue, representing the Citizens for the Preservation of New Ford Town, presented a plaque to Council Member Rosenberg in appreciation of her open-mindedness about the buyout issue. He stated that he felt the City was not fair to those who opposed the buyout and only worked with the group who advocated the buyout. Council Meeting Minutes -2- November 22, 1993 Council Member Rosenberg stated appreciation for the work of Mr. Hruce's~group and stated it is important to listen to both sides. Mayor Kirsch stated that the City Council made the policy decision to support the buyout based on the wishes of the majority of the neighborhood. He stated the City staff was following the direction of the City Council to pursue the buyout. Item #2 PRESENTATION OF SILVER SERVICE AWARD BY HUMAN SERVICES COMMISSION SERVING SENIORS AND DISABLED TO RONALD VAN NESS, MANAGER AT RICHFIELD RAINBOW FOODS, FOR HIRING SENIORS AND DISABLED IN RICHFIELD. C.L. NO. 319 Lorraine Schreyer, on behalf of the Human Services Commission Serving Seniors and Disabled, presented the 1993 Silver Service Award to Ronald Van Ness, manager of the Richfield Rainbow Food Store, in recognition of his efforts in providing employment for elderly and disabled people. Item #3 COUNCIL APPROVAL OF AGENDA M/Priebe, S/Susag to approve the agenda. Motion carried 5-0. Item #4 CONSENT CALENDAR 4A. APPROVED CONTRACT NO. A01384 WITH HENNEPIN COUNTY TO ALLOW CONTINUED ACCESS TO PROPERTY INFORMATION SYSTEM C.L. 320 B. APPROVED AWARD OF BIDS FOR SALE AND REMOVAL OF BUILDINGS ADJACENT TO 77TH STREET; 77TH STREET PROJECT C.L. 321 C. APPROVED PURCHASE IN EXCESS OF $5,000 FOR PERSONAL COMPUTERS FROM PORTICO COMPUTERS IN AMOUNT OF $13,162.35 C.L. 322 1 D. APPROVED CHANGE ORDER NO. 1, DECREASING ORIGINAL CONTRACT AMOUNT BY $5,812 FOR BOR-SON CONSTRUCTION, INC. CONTRACT NO. 2543, CITY PROJECT 703-1592, WATER TREATMENT PLANT MODIFICATIONS C.L. 323 Council Meeting Minutes -3- November 22, 1993 E. APPROVED FIRST AND FINAL PAYMENT FOR 1993 SIDEWALK/CURB/GUTTER REPAIR; ARCON CONSTRUCTION, CO.; 32,543.66 F. APPROVED FIRST AND FINAL PAYMENT FOR 1993 CONCRETE JOINT REPAIR; ARCON CONSTRUCTION, CO.; 52,330.54 G. APPROVED ESTIMATE #4 PAYMENT FOR NICOLLET PARK SITE IMPROVEMENT; HOFFMAN & MCNAMARA, CO.; $29,402.73 H. APPROVED ESTIMATE #3 PAYMENT FOR RICH ACRES GOLF COURSE IRRIGATION UPGRADE; NORTHERN IRRIGATION SYSTEMS, INC.; 54,072.91 M/Priebe, S/Susag to approve the consent calendar. Motion carried 5-0. ITEM #5 PUBLIC HEARING AND CONSIDERATION OF REQUEST FOR NEW 1993 ON-SALE WINE LICENSE FOR KIANG'S RED PEPPER, INC., D/8/A RED PEPPER CHINESE RESTAURANT, 2902 WEST 66TH STREET. C.L. NO. 324 City Manager Prosser reviewed Council Letter No. 324 regarding the request of Ricky Kiang for a new 1993 on-sale wine license for Kiang's Red Pepper, Inc. d/b/a Red Pepper Chinese Restaurant, 2902 West 66th Street. Ron Teal, representing Mr. Kiang, spoke in support of the application. He indicated that the applicant is also interested in applying for an on-sale 3.2 beer license in the future if the Council authorizes another on-sale 3.2 beer license for the City. John Sieberz, 6434 Washburn Avenue, asked about neighborhood notification about this type of license. City Manager Prosser indicated that he would review this issue and respond to Mr. Sieberz. M/Susag, S/Priebe to close the public hearing. Motion carried 5-0. M/Susag, S/Rosenberg to approve the issuance of a new 1993 on-sale wine license to Mr. Ricky Kiang, Kiang's Red Pepper, Inc. Jb/a Red Pepper Chinese Restaurant, 2902 West 66th Street, subject to the conditions of Resolution No. 7380. Motion carried 5-0. Council Meeting Minutes -4- November 22, 1993 Item #6 CONTINUATION OF PUBLIC HEARING AND SECOND READING OF ORDINANCE AMENDMENT TO CLASSIFY PAWN OPERATIONS AND SECONDHAND GOODS OPERATIONS WHICH REQUIRE LICENSE UNDER SECTION 1186 OF CITY CODE, AUCTION HOUSES, AND CONSIGNMENT AUCTION HOUSES AS CONDITIONAL USES IN GENERAL COMMERCIAL AND INDUSTRIAL DISTRICTS. C.L. NO. 325 City Manager Prosser reviewed Council Letter No. 325 regarding a proposed ordinance amendment to classify pawn operations, and secondhand goods operations, auction houses and consignment auction houses as conditional uses in general commercial and industrial districts. He stated currency exchanges had been deleted from the proposed ordinance for future consideration. M/Susag, S/Priebe to close the public hearing. Motion carried 5-0. M/Susag, S/Rosenberg that this constitute Second Reading of Bill No. 1993-19, amendment to Section 520 of Appendix B; that it be published in the official newspaper and that it be made part of these minutes. Motion carried 5-0. Item #7 CONSIDERATION OF RESOLUTION DENYING REZONING OF LAND AT 6438 AND 6444 FIRST AVEN[JE. C.L. NO. 326 City Manager Prosser reviewed Council Letter No. 326 regarding consideration of a resolution denying the rezoning of land at 6438 and 6444 First Avenue. Peter Beck, Larkin, Hoffman, Daly & Lindgren, Ltd., representing Norwest Bank, requested that the City Council defer final action on Norwest's rezoning request until January 24, 1994. He stated the delay would allow Norwest to do the following: • hold additional meetings with neighborhood residents; • investigate the availability and economic feasibility of acquiring all or a portion of the property to the north; • review the site plan to see if and how it can be revised to address neighborhood and City Council concerns. Council Meeting Minutes -5- November°22,-1993 Mr. Beck suggested that the proposed findings of fact prepared for the Council would be inadequate to support denial of the requested rezoning. Julie Swedback, 6420 First Avenue, stated that it was her opinion that nothing has changed the neighborhood opposition to the rezoning. She stated that the findings of fact were sufficient to support denial of the rezoning request and that Norwest did not provide facts to support rezoning. She stated the Council was scheduled to consider the denial of rezoning and that Norwest could sue if they wanted to challenge the decision. Council Member Susag asked the City Attorney what courses of action were available to the Council for this issue. Assistant City Attorney Heine stated that the City Council could approve the resolution denying the rezoning, approve the rezoning, or table the item. M/Susag, S/Sandahl to table consideration of the request by Norwest Bank for the rezoning of 6438 and 6444 First Avenue from residential to general commercial to permit expansion of parkins and drive-u_.p teller facility to the January 24, 1994 Citv Council Meetins. Council Member Susag stated he had voted against the ,. rezoning at the last meeting based on the concerns stated by the neighborhood. However, he stated that if there is a chance for the issues to be worked out with the neighborhood and also address the City's need for the commercial tax base by delaying the decision to January 24, it should not be rejected out of hand. Council Member Sandahl stated that a delay would allow time for possible solutions to be explored that may solve the dilemma. Council Member Priebe stated that some of the residents had suggested that the bank explore expansion to the north and that Mr. Beck indicated Norwest will explore this option, therefore it is appropriate to give time to do so. Council Member Rosenberg stated she supported the neighborhood residents in opposing the rezoning. Mayor Kirsch stated support for giving additional time .for possible alternative solutions to be reviewed. Motion carried 4-1. (Rosenberg opposed) Council~Meeting Minutes -6- November 22, 1993 ITEM #8 CONSIDERATION OF RESOLUTION DESIGNATING CITY'S CONTRIBUTION TOWARD HEALTH, .TERM LIFE AND DENTAL INSURANCE PREMIUMS FOR GENERAL SERVICES AND MANAGEMENT EMPLOYEES. C.L. NO. 327 ' City Manager Prosser reviewed Council Letter No. 327 recommending the following actions regarding the City's insurance contributions for General Services and Management employees: Life Insurance That the term life insurance remain at $15,000 with a premium charge of $2.55 per month per employee. Dental Insurance That the per employee per month contribution be increased from $22 to $23. As in the past, employees who desire dependent coverage would pay the full cost of such additional premium. Long-Term Disability Insurance That the long-term disability insurance remain with a premium charge of 41G per $100 of salary. Group Health Insurance That the City contribution be increased from a maximum of $285 per month to $315 per month per employee for dependent coverage. Discussion followed regarding health insurance costs, coverage and options. M/Susag, S/Priebe that the following resolution be adopted; that it be spread in the resolution book and that it be made part of these minutes: RESOLUTION NO. 8071 RESOLUTION DESIGNATING CITY'S CONTRIBUTION TOWARD HEALTH, TERM LIFE AND DENTAL INSURANCE PREMIUM FOR MANAGEMENT AND GENERAL SERVICES EMPLOYEES Motion carried 5-0. This resolution appears as Resolution No. 8071 in Resolution Book No. 63. Item #9 CONSIDERATION OF RESOLUTION CALLING FOR PUBLIC HEARING ON PROPOSED ISSUANCE OF REFUNDING REVENUE BONDS FOR MARKET PLAZA TOWER APARTMENTS, 6501 WOODLAKE DRIVE. C.L. NO. 328 City Manager Prosser reviewed Council Letter No. 328 regarding the scheduling of a public hearing on the proposed issuance of refunding revenue bonds for the Market Plaza Tower Apartments. 1 Council Meeting Minutes -7- November 22,, 1993 M/Susag, S/Priebe that the following resolution be adopted; that it be spread in the resolution book and that it be made mart of these minutes: RESOLUTION NO. 8072 RESOLUTION CALLING FOR A PUBLIC HEARING ON PROPOSED ISSUANCE OF REFUNDING REVENUE BONDS UNDER MINNESOTA STATUTES, CHAPTER 462C FOR A MULTI-FAMILY HOUSING DEVELOPMENT Motion carried 5-0. This resolution appears as Resolution No. 8072 in Resolution Book No. 63. Item #10 CONSIDERATION OF RESOLUTION TO AMEND LETTER OF UNDERSTANDING BETWEEN CITY OF RICHFIELD AND CITY MANAGER, ADJUSTING COMPENSATION. C.L. NO. 329 Mayor Kirsch stated that each Council Member had individually completed and submitted to him a written performance evaluation of the City Manager. He stated a composite had been prepared from these evaluations. Mayor Kirsch stated th~}t the City Council met in closed executive session for the purpose of discussing the City Manager's evaluation and compensation on. November 10, 1993. Council Member Sandahl stated the recommendation that City Manager Prosser be given a 52500 increase which Mr. Prosser may designate at his option either totally or partially as salary or as deferred compensation. M/Sandahl, S/Kirsch that the following resolution be adopted; that it be spread in the resolution book and that it be made part of these minutes: RESOLUTION NO. 8073 RESOLUTION AMENDING THE LETTER OF UNDERSTANDING BETWEEN THE CITY OF RICHFIELD AND JAMES D. PROSSER, CITY MANAGER Motion carried 5-0. This resolution appears as Resolution No. 8073 in Resolution Hook No. 63. Item #11 CONSIDERATION OF PROPOSAL FOR STRATEGIC PLANNING SERVICES FROM LYNN & ASSOCIATES. C.L. NO. 330 City Manager Prosser reviewed Council Letter No. 330 regarding a proposal from Lynn & Associates for providing services for the City Council Strategic Planning process. Council Meeting Minutes -8- November 22, 1993 M/Kirsch, S/Susag to approve the proposal of Lynn & Associates for the City Council Strategic Planning Process and to schedule the City Council Strategic Planning Session as a Special City Council Meetinct for December 30..1993. Motion carried 5-0. Council Member Priebe suggested that the main emphasis of the process-be on goal setting and the future of City rather than personality styles. It was the consensus of the Council that this be the main emphasis of the session. Item #12 CONSIDERATION OF WHETHER TO HOLD A CITY COUNCIL STUDY SESSION ON DECEMBER 6, 1993. C.L. NO. 331 City Manager Prosser reviewed Council Letter No. 331 regarding whether to hold a City Council Study Session on December 6, 1993. Discussi©n f©11©wed regarding the timing x©r C~.ty C©un~;il review and response regarding the Runway 4-22 Extension Draft Environmental Impact Statement (DEIS). M/Sandahl, S/Susag to cancel the December 6, 1993 City Council Study Session Meeting and direct the City Manager to schedule Council consideration of the runway 4-22 Extension DEIS at a regular or Special City Council meeting as necessary. . Motion carried 5-0. Item #13 CONSIDERATION OF SELECTED BUDGET ISSUES. C.L. NO. 332 City Manager Prosser reviewed Council Letter No. 332 giving additional information regarding the following four budget issues: e The proposed Human Services Planner and Coordinator position • Source of funding for Madison Park The proposed fourth liquor store e Water and sanitary sewer utility fund balances City Manager Prosser presented a draft position description for the Human Services Planner and Coordinator position. He indicated that the proposed position would be funded from the General Fund with a similar amount of communications expense be charged to the Cable Fund. Council Member Susag stated opposition to the proposed position. Council Meeting Minutes -9- November 22, 1993 City Manager Prosser stated that if the Council directed that Madison Park redevelopment occur in 1994 instead of 1995, $500,000 could be transferred-from thb Capital Fund to the Special Revenue Fund. Then in 1995, the Liquor Fund would repay the Capital Fund for the $500,000 transfers in lieu of a 1995 transfer to the Special Revenue Fund. Council Member Priebe stated that the cash balance in the Liquor Fund could be used to fund Madison Park if a fourth liquor store is not built, and would allow continued transfers in 1995 to the Special Revenue Fund. City Manager Prosser stated that this is an option for City Council decision. Council Members Susag and Rosenberg noted that there is strong neighborhood support for the redevelopment of Madison Park. City Manager Prosser reviewed market analysis, proforma, and revenue projections related to a proposed fourth liquor store. Council Member Priebe discussed issues related to control, profit performance, revenue forecasts and tax exempt impact related to concern about the liquor operations and indicating opposition to a fourth liquor store. Doris Rubenstein, 6515 Emerson Avenue, member of the Advisory Board of Health, spoke in opposition to a fourth liquor store citing the negative impact of drugs and alcohol on the community. Council Member Sandahl stated that the impact of drugs and alcohol is a larger societal problem not dust a function of a fourth liquor store. Council Member Rosenberg stated that drug and alcohol abuse is also a question of a philosophy of allowing the City to sell it. She stated support for empowering the Advisory Board of Health to study the issue. Roger Ose, 6824 10th Avenue, discussed the broad issues of the negative affects of alcohol on society. He stated if funding for parks is needed, he would be willing to help with fund- raising. He stated there were better options than a fourth liquor store. Jeff Page, 6951 First Avenue, criticized the liquor store market analysis, reviewed a 1980 liquor store market analysis and questioned the credibility of the consultant who prepared the report. He questioned the performance of the liquor store operations as compared to 1980. City Manager Prosser reviewed the proposed combining of the water and sanitary sewer and projected customer rates. Council Meeting Minutes -10- November 22, 1993 Council Member Susag stated the need for more information on what the required fund balance should be, including operating costs and capital equipment needs. Council Member Sandahl stated he would also like to see an expert opinion on this issue. Mayor Kirsch asked if the City auditor advised the City on this issue. City Manager Prosser reviewed the recommendation of the auditors regarding depreciation of capital equipment, engineer's estimates regarding infrastructure, and the problems related to projecting needs for underground pipes and sewers. He stated more information would be provided to the Council. Council Member Priebe explained that he favored a $500,.000 cash balance, not including capital expenditures. He stated that meant that if there was a need for $1 million in capital improvements, the cash balance would be $1.5 million that year. He discussed the revenue projections, stating that they do not take into account loans to other funds indicating they should sh©w the ©utstandingi 1©an balances and r epa;~-~~~t a~~3e~dule~ . Floyd Sandell, 6737 Third Avenue, stated concerns about the impact of increasing taxes and utility rates on senior citizens. He stated that the police department should not be cut but other departments should be reduced. Lawrence Wozniczka, 6744 Wentworth Avenue, stated that the City should look at the cost of production in setting water and sewer rates. John Sieberz, 6434 Washburn Avenue, spoke in support of holding the line on water and sewer rates. Lawrence Wozniczka, 6744 Wentworth Avenue, questioned the HRA assistance for the new Richfield State Agency medical office building development. Item #~14 AIRPORT STATUS REPORT City Manager Prosser reviewed the following airport related issues: • RUNWAY 4-22 EXTENSION DRAFT ENVIRONMENT IMPACT STATEMENT (DEIS) The City is analyzing the DEIS to provide comments on the potential noise impacts on Richfield. Council Meeting Minutes -11- November 22, 1993 • ANOMS SYSTEM Reviewing the relationship of statistical information from the system to the noise contours is a mayor undertaking. • NEW FORD TOWN BUYOUT The MAC consultant is selecting appraisers and reviewing hardship cases. The City will continue to monitor the process. • MSP LONG TERM CAPITAL IMPROVEMENT PLAN The City will participate and monitor the process. Item #15 77TH STREET PROJECT STATUS REPORT Community Services Director Fondrick summarized the status of the 77th Street construction project. He reviewed a diagram of the interim traffic circulation plan for the area which will begin with the opening of 77th Street on November 24, 1993 on the following reduced scale: • Access to the northbound I-35W ramp, the 76th Street bridge over I-35W and 76th Street from 77th Street to Emerson Avenue will be open. • The new 77th Street will be limited to one lane in each direction from Lyndale Avenue to 76th Street and will be opened completely from 76th Street to I-35W. • Most east-west through traffic will still use 76th Street until 77th Street is extended to Portland Avenue in 1994. • Connections on the south side of 77th Street will be available to Girard, Emerson, Colfax and Aldrich Avenues. • Traffic at Lyndale Avenue and 77th Street will be controlled with two-way stop signs on 77th Street. Some restrictions on turning movements will be necessary. Discussion followed regarding signs, barricades, safety, turn movements, roadway grade elevations, and traffic signals related to the intersections of the new interim 77th Street with Lyndale Avenue and with 76th Street. Floyd Sandell, 6737 Third Avenue, asked why the construction had not begun earlier. Community Services Director Fondrick stated that the state and federal review process had delayed the project. Council Meeting Minutes -12- November 22, 1993 Item #16 LEGISLATIVE REPORT ' None Item #17 COUNCIL DISCUSSION ITEMS Council Member Susag discussed the following: • The Human Rights Commission will hold the Ethnic Celebration on April 8 in 1994 instead of in January. • The HRA at its last meeting swore in new Commissioner Sandahl, passed the 1994 HRA tax levy and budget, and took action regarding the R.S.A. medical office building. • The next Friends of Woodlake (FOWL) Board Meeting is scheduled f®r December 9. • He requested citizens to call City Council Members with comments and concerns about the proposed budget for the December 1 Truth-in-Taxation public hearing. Mayor Kirsch announced that Richfield Schools Superintendent Lowell Larson had been named Minnesota Superintendent of the Year by the Minnesota Association of School Administrators. Item #18 CLAIMS AND PAYROLL3 M/Susag, S/Priebe that the following claims and payrolls be approved: RICHFIELD HANK & TRUST CO. Checks 17742-17802; 42425-42632 51,065,926.35 NORWEST SANK Checks 1193-1194 $ 14,100.00 FIRSTAR BANK Checks 7739-7763 S 211,138.83 Checks 72704-72740; 72749-73030 S 364,237.81 Motion carried 5-0. 1 r Council Meeting Minutes ADJOURNMENT -13- November 22, 1993 The meeting was adjourned by unanimous consent at 9:56 .m. Date Approved: 12/13/93 i~~ c Martin J. Ki sch Mayor Thomas P. Ferber City Clerk D. Prosser Manager