11-28-1994CITY OF RICHFIELD, MINNESOTA
REGULAR CITY COUNCIL MEETING
November 28, 1994
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; 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
• M/Susag, S/Priebe to avnrove the minutes of the Regular City
Council Meeting of November 14, 1994.
Motion carried 5-0.
Item #1 OPPORTUNITY FOR PERSONS TO ADDRESS THE CITY COUNCIL
ON ANY ITEM NOT LISTED ON THE AGENDA.
No one wished to address the Council.
.Item #2 RECOGNITION OF RICHFIELD INTERMEDIATE SCHOOL FIFTH
GRADE STUDENTS WHO PARTICIPATED IN D-DAY SMOKING POSTER
PROGRAM SPONSORED BY RICHFIELD ADVISORY BOARD OF HEALTH
AND PROJECT CHARLIE. C.L. NO. 314
Mary Jane Markkula, Advisory Board of Health member,
explained the D-Day Smoking poster program.
Mayor Kirsch read and presented a proclamation recognizing
.the fifth grade students of the Richfield Intermediate School who
participated in the D-Day Smoking poster program to the student
representatives present at the meeting.
Council Meeting Minutes -2- November 28, 1994
Item #3 COUNCIL APPROVAL OF AGENDA
M/Sandahl, S/Susag to approve the agenda.
Motion carried~5-0.
Item #4 CONSENT CALENDAR
4A. APPROVED BID MINUTES/TABULATION AND AWARD OF TWO YEAR
CONTRACT FOR APPROXIMATELY 2,800 TONS OF QUICK LIME FOR
WATER TREATMENT TO CUTLER-MAGNER COMPANY IN AMOUNT OF
5178,630 C.L. 315
B. APPROVED PURCHASE IN EXCESS OF $5,000 FOR HYDROFLUOSILICIC
ACID (FLUORIDE) REQUIRED IN WATER TREATMENT FROM FEED-RITE
CONTROLS, INC. IN ESTIMATED YEARLY TOTAL OF $7,560 C.L. 316
C. APPROVED PURCHASE IN EXCESS OF $5,000 FOR CHLORINE REQUIRED
IN WATER TREATMENT FROM FEED-RITE CONTROLS, INC. IN YEARLY
TOTAL OF $6,440.00 C.L. 317
D. APPROVED PURCHASE IN EXCESS OF $5,000 FOR CHANGE ORDERS #5,
#6 AND #7 FOR WATER TREATMENT PLANT MODIFICATIONS TO BOR-SON
CONSTRUCTION, INC. IN AMOUNT OF $12,835.69 C.L. 318
E. APPROVED FINAL PAYMENT FOR WATER TREATMENT PLANT
MODIFICATIONS; BOR-SON CONSTRUCTION; $31,365.48
M/Susag, S/Priebe to approve the consent calendar.
Motion carried 5-0.
Item #5 PUBLIC HEARING AND CONSIDERATION OF RESOLUTION
AUTHORIZING ISSUANCE, SALE AND DELIVERY OF $8,010,000
MULTI-FAMILY HOUSING REVENUE REFUNDING BONDS, SERIES
1994, FOR VILLAGE SHORES PROJECT (DEFERRED FROM OCTOBER
24, 1994). C.L. NO. 319
City Manager Prosser reviewed Council Letter No. 319
regarding consideration of a resolution authorizing the issuance
of $8,010,000 Multi-Family Housing Revenue Refunding Bonds for
the Village Shores Project. He stated that representatives of
Village Shores had asked that the City Council not take action on
the issue this evening because they were not in a position to
execute the bond transaction at this time due to the fluctuation
in interest rates.
Council Meeting Minutes
-3- November 28, 1994
Community Development Director Wallace reported on the'
mediation session with representatives of Village Shores and
tenant representatives regarding concerns about a significant
rent increase to be implemented to reflect upgrading and changes
in the building. He indicated there was not complete agreement
but that Village Shores had agreed to five items of assistance
including:
• Relocation counseling assistance;
• Apartment search assistance;
• Transportation to view apa;tments;
• $200 moving allowance; and'.
• Names of moving companies that should be able to move people
for that allowance.
Council Member Priebe stated .he had wanted staff to be an
advocate for the residents in this process not dust an observer.
He questioned the amount of additional 'cash flow from the rent
increase as compared to the Village Shores investment. He stated
he would want more information on the cash flow, building
improvements, and investment by Village Shores before making a
decision.
Community Development Director Wallace stated that if this
issue comes back to the Council, providing such information would
be a legitimate request.
Myrtle Robison, 6501 Woodlake Drive, stated she had expected
a compromise from mediation but that didn't happen for the rent
increase. She stated opposition to paying increased rent for the
building changes proposed by G & P Properties.
Carl Retz, 6501 Woodlake Drive, stated the rent increase
proposed for Village Shores was too large an increase for retired
people with fixed incomes.
Oscar Lindstrom, :6501 Woodlake Drive, stated that the
tenants love the building and the .City but are scared that they
will have to move out because of the rent increase.
Tim Trible, Vice President of G & P Properties, stated that
due to the increase in the interest rate, they intend to stay
with the current interim financing until the rate goes down, at
which time they would again look at requesting refunding bonds.
He stated the planned improvements would be financed by a
construction loan. Mr. Trible indicated the decision to change
the building to an independent senior housing apartment building
was based on a market study showing the need for this type of
housing in Richfield. He reviewed the proposed property
improvements and new services that will become available with the
conversion. Mr. Trible, in response to questions, reviewed the
current financing of Village Shores.
Council Meeting Minutes -4- November 28, 1994 _
Larry Wozniczka, 6744 Wentworth Avenue, raised the issue of
whether the City Council would need to approve changes to the
original Planned Unit Development (PUD).
Community Development Director Wallace stated that if there
is a change in the number of rental units or in parking spaces,
the original PUD would need to be amended which would require
City Council action. _
M/Sandahl~, S/Susag to close the public hearing.
Motion carried 5-0.•
Discussion followed regarding the City's lack of
jurisdiction in the issue of rents, the City Council's
discretionary power in the issue of the refunding bonds, and the
City Council's discretion over a PUD amendment.
Assistant City Attorney Heine answered questions regarding
these issues.
The Council requested further information be made available
for guidance and a basis for decisions on these issues, if they
become necessary in the future. This would include information
on the original PUD, information on the financing of Village
Shores, and legal opinion of the City Council's discretion and
jurisdiction on these matters.
Item #6 AIRPORT STATUS REPORT
-City Manager Prosser summarized the status of the following
airport issues: •
• RUNWAY 4-22 EXTENSION
The Metropolitan Airports Commission (•MAC) took rio action on
the 4-22 Extension capital improvements deferring•the
decision until after the FAA issues a Record of Decision on
the Draft Environmental Impact Statement.
Northwest Airlines has indicated they generally support the
extension of the runway for international flight but they do
not support the noise mitigation purpose of the extension.
• MSP LONG TERM COMPREHENSIVE PLAN
The City has submitted written comments on the. Draft
Alternative Environmental Document (AED) related to concerns
about the MAC preferred alternative for future development
of runway and terminal improvements.
Council Meeting Minutes -5- November 28, 1994
• NEW FORD TOWN/RICH ACRES ACQUISITION
Continued funding has allowed the acquisition process to
continue.
• PART 150 SOUND INSULATION PROGRAM
Sound insulation of homes continues in both south and north
Richfield, although there had been discussion by the.MAC
about changes in priorities due to the pending 4-22
' extension project.
Item #7 77TH STREET PROJECT STATUS REPORT
Community Services Director Fondrick reviewed the status of
the following 77th Street Construction Project issues:
• Redistribution of fill materials at Washington Park.
• Progress on sliding hill construction at Washington Park.
• Schedule for seeding Washington Park.
• Study of temporary alternatives for traffic at the 77th
Street and Portland Avenue intersection will be completed in
one weak.
• Most work will atop now due to the weather.
Council Member Sandahl requested staff to review the
adequacy of the lighting of the intersection of 76th Street with
the new 77th Street.
Council Member Priebe asked about the schedule for dredging
the pond at Christian Park.
Community Services Director Fondrick stated that the
contractor has scheduled the dredging at Christian Park
immediately after completing the current dredging of the lime
sludge area at the water plant.
Community Services Director Fondrick reviewed the status of
the 76th Street and Penn Avenue reconstruction project.
Item #8 LEGISLATIVE REPORT
City Manager Prosser stated that discussion of the
legislative priorities and initiatives is scheduled for the
December 5r City Council Study Session Meeting.
Item #9 COUNCIL DISCUSSION ITEMS
None
Council Meeting Minutes
-6- November 28, 1994
Item #10 CLAIMS AND PAYROLLS
M/Susag, S/Sandahl that the following claims and payrolls be
approved:
RICHFIELD BANK & TRUST CO.
.Checks 19271-19311; 48790-48999 -$871,671.57
' FIRSTAR BANK
Checks 8329-8340 $ 98,749.30
Payroll 82039-82428 $375,408.16
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent„a~ 8:08 p.m.
Date .Approved : 12/ 12/ 94 ~.~ G~ ~l ~ ,(~~,~~
Martin J. irs h May r
\e' ~ ~-~!`~''`-~~
Thomas P. Ferber J es D. Prosser
City Clerk C ty anager