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04-19-1993 SpecialCITY OF RICHFIELD, MINNESOTA SPECIAL CITY COUNCIL MEETING HELD CONCURRENTLY WITH RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY April 19, 1993 CITY COUNCIL MEMBERS PRESENT: Martin Kirsch, Mayor; Susan Rosenberg; Russ Susag; Michael Sandahl; and Don Priebe. HRA MEMBERS PRESENT: Thomas Harms; Joan Helmberger; Russ Susag; Vern Luettinger; and Larry Wozniczka. STAFF PRESENT: James Prosser, City Manager; Steven Devich, Administrative Services Director; Thomas Ferber, City Clerk; Donald Fondrick, Community Services Director; Hyron Wallace, Community Development Director; Bruce Palmborg, Housing & Redevelopment Coordinator; Michael Eastling, City Engineer; Bruce Norquist, Housing Supervisor; and John Dean, City Attorney. The meeting was called to order by Mayor Kirsch and HRA Chairperson Harms at 7:00 p.m. Item #~1 CONSIDERATION OF USE OF SOUTHERLY FIVE ACRES OF CLOVERLEAF SITE FOR PORTABLE CONCRETE BATCH MIXING PLANT FOR 77TH STREET PROJECT. C.L. NO. 123, HRA LETTER NO. 12 City Manager/Executive Director Prosser reviewed Council Letter No. 123/HRA Letter No. 12 regarding consideration of use of the southerly five acres of the Cloverleaf Site for a portable concrete batch mixing plant. Mr. Prosser reviewed the history, costs, and timing issues related to the 77th Street project. HRA Chairperson Harms asked about the trade-off for the contractor of locating the batch plant on the site and the screening, energy, and restoration costs. Mr. Harms also asked if there would be additional costs to the City for the lease and monitoring contractor compliance to the terms of the lease. City Manager/Executive Director Prosser stated that the estimated savings for the contract would be 525,000-540,000 which would be offset by the screening. Energy and restoration costs would probably not be affected. Mr. Prosser stated that compliance and monitoring for noise, dust, and other construction issues would be a part of the overall contract for the project. Special Meeting Minutes -2- April 19, 1993 HRA Commissioner Luettinger stressed the importance of timely restoration of the site. City Attorney Dean indicated that the wording in the lease could address the mitigation issues such as the restoration. Council Member Priebe asked about the environmental impact on the neighborhood. Community Services Director Fondrick stated PCA standards would be met and that the construction project itself, beyond the batch plant, would be disruptive to the area. He indicated it is anticipated the batch plant would be in operation a total of six weeks. Council Member Priebe asked about the impact of leasing this property on the prospect for sale of the property to a developer. City Manager/Executive Director Prosser noted that no developer is currently interested in the property. He stated the proposed lease is for only one year terms and that project approvals, rezoning, etc. would have to occur prior to any developmen•%. Council Member Susag reviewed the operations of a cement mix batch plant. Council Member Rosenberg stated concern about safety and security of the site. Community Services Director Fondrick stated that security and safety issues related to the storm sewer trenches, road construction, and the batch plant would be addressed by the contract. HRA Commissioner Wozniczka asked questions about the location of the batch plant on the site, protection of the trees, and the feasibility of obtaining the concrete instead from Model Stone in south Minneapolis. Community Services Director Fondrick stated the batch plant would be located approximately where the motel had been on the site. He indicated that the contractor would be required to protect the trees. Mr. Fondrick stated ready mix costs were $36 per cubic foot vs. $24 per cubic yard for batch mix. HRA Commissioner Luettinger asked how the neighbors would be given information about construction and the batch plant. Community Services Director Fondrick stated staff would continue utilizing a newsletter and neighborhood meetings to inform residents about the project. Special Meeting Minutes -3- April 19, 1993 City Manager/Executive Director Prosser has noted the concerns expressed related to mixing plant regarding lease term, security, dust control, noise control, and restricting 77th Street Project. He stated these issues in any proposed lease agreement. stated that staff the concrete batch safety, restoration, the use of it to the would be addressed M/Priebe, S/Rosenberg that the City Council requests the Richfield Housing and Redevelopment Authority allow the use of the Cloverleaf site for the purpose of a concrete batch plant for the exclusive use of mixing concrete for the 77th Street Project. Motion carried 5-0. M/Luettinger, S/Helmberger that the HRA will allow the use of the southerly five acres of the Cloverleaf site for one year for use as a concrete batch plant. However, depending on potential extra contract costs, should MAC property become available for the City's use as a concrete batch plant, the MAC site will be used instead of the Cloverleaf site. Motion carried 5-0. Item #2 CONSIDERATION OF AUTHORIZATION TO LEASE 6318 NICOLLET AVENUE TO 77TH STREET RELOCATEE FOR ONE YEAR. C.L. NO. 124, HRA LETTER NO. 13 City Manager/Executive Director Prosser reviewed Council Letter No. 124/HRA Letter No. 13 regarding authorization to lease 6318 Nicollet Avenue to a residential relocatee of the 77th Street Project for a term of one year. HRA Commissioner Wozniczka read the following disclosure statement, Clerks File No. C-339, into the record: "This statement is presented to the City Council and the Housing and Redevelopment Authority of the City of Richfield, Minnesota to disclose my relationship to Michael A. Wozniczka (Mike) and my association with his submission of a Pre- Application to be considered for purchase of the property at 6318 Nicollet Avenue South. The possibility of a conflict of interest because 2 serve on the HRA was raised at the March 15, 1993 HRA meeting. Mike Wozniczka is my son, born by my wife, Rosemary, on January 31, 1959, who was raised by us, aid who lived with me, after my wife's death in 1978, until June of 1982. Since that time, Mike has maintained independent residence in a Richfield apartment at 6304 Dupont Avenue, Unit 101. Special Meeting Minutes -4- April 19, 1993 During the past eleven years, we have continued one point effort, wherein we combine our soiled clothes with me doing the washing and Mike doing the ironing. This arrangement works to our mutual advantage, I trust that all that dirty laundry will be viewed as a conflict of interest. Last fall, Mike mentioned to me that he would like to purchase a new home, but wanted to remain in Richfield. Aware of the Richfield Rediscovered program and its effort to find interested buyers, I introduced Mike to Kathy Jones, the staff housing specialist for the HRA at that time. The house at 6318 Nicollet was mentioned as one that would be suitable for a single-person, and this led to his receiving pre-application submittal nor his letter or refection, but after being told of his refection, I had suggested that he could request reconsideration before the HRA, which he did March 15. The record will show rather than refurbish the available for a larger hog house at 6318 Nicollet so and the appeal of a house space. that I voted in the minority to remove structure so that the site could be ase. I still wish to see the finished as to evaluate the results of the work with less than contemporary living In order to avoid any hint of impropriety I am willing to refrain from any future vote on the disposition of 6318 Nicollet Avenue, this being done without prejudice to pre-existing rights. Submitted April 19, 1993 /s/Lawrence Wozniczka HRA Commissioner" City Attorney Dean stated it was not a conflict of interest for Commissioner Wozniczka to participate in discussion and vote on the current issue before the HRA regarding 6318 Nicollet Avenue. Discussion followed regarding lease terms and relocation issues. John Connors, Conworth Inc., reviewed the relocation efforts and issues related to the individual relocatee and the current status of negotiations. City Attorney Dean reviewed the relocation process and rights. HRA Commissioner Wozniczka stated opposition to leasing the 6318 Nicollet Avenue property stating it was a disservice to the neighbors. He also stated that the property should be owner occupied, and that leasing it would cause wear to the house. L i Special Meeting Minutes -5- April 19, 1993 M/Sandahl, S/Priebe that the Cites Council request the HRA to utilize the property at 6318 Nicollet as a relocation resource for the relocates for a period of one year. Motion carried 5-0. M/Luettinger, S/Susag that the HRA authorize the leasing of 6318 Nicollet to the subject relocates for one year at 5650 per month under the following terms: • A security deposit equal to one month's rent will be paid at the beginning of the lease term. • HRA insure the property for liability and property damage. • The relocatee to have option of purchasing own insurance for personal properties. • No pets. • Yard maintenance to be responsibility of relocatee. • Term of lease: one year maximum After the one year lease expires, the relocatee would find permanent housing elsewhere. The property would then be offered for sale by the HRA under the normal program terms. Motion carried 4-0. (Wozniczka abstained) Item #3 RECEIPT OF DISCLOSURE STATEMENT AND DISCUSSION OF EMPLOYEE PARTICIPATION IN LOCAL BUSINESS. C.L. NO. 125 HRA LETTER N0. 14 City Manager/Executive Director Prosser reviewed Council Letter No. 125/HRA Letter No. 14 regarding the receipt of the following disclosure statement (Clerks File No. C-340) from Community Development Director Byron Wallace: "In response to Section 469.009 of the Minnesota Statutes as outlined in an opinion letter dated April 6, 1993 from Corrine Heine, Assistant City Attorney, I am submitting this disclosure statement as Community Development Director and an employee of the HRA. 1. My wife, Kaye Wallace, is interested in operating the Baskin- Robbins ice cream store in the Hub Shopping Center located in the LHN Redevelopment Area. Special Meeting Minutes -6- April 19, 1993 2. The proposal being considered is a two year lease of the facility as a sublessee and franchisee of Baskin-Robbins with an option to renew for two years with a further purchase option of the equipment. 3. Baskin-Robbins is responsible for obtaining all approvals before turning the facility over to a sublessee. The policy of Baskin-Robbins is to continue as the property lessee for so long as it is used as a Baskin-Robbins store. 4. Documents related to the sublease, franchise and operations would have to be signed by both of us and would be our point responsibility. 5. Kaye would be the manager of the business and no part of the business could or would be operated out of City Hall in any way. Nor would I take any part in operations during normal City business hours. 6. There is no conflict of interest that I am aware of. No financial assistance has been received by us or Baskin- Robbins from the City, HRA or anyone else affected. There are no contracts in existence or contemplated between the HRA or City and the business other than a normal license or review as any other such business. I am unaware of any plan by the HRA or City to purchase the real estate. There are no financing plans pending or contemplated that would affect this property. A payment would be made to Baskin-Robbins equivalent to the proportionate share of real estate taxes paid by Baskin-Robbins to the HUB, part of which are taxes levied by the City and HRA. 7. If a potential conflict of interest should ever arise over any action or issue, it would immediately be referred to the City Manager who would ensure that another employee would be assigned to handle the matter. Submitted April 19, 1993 /s/Byron J. Wallace Community Development Director" HRA Chairperson Harms read and reviewed the Richfield City Charter Chapter 12 entitled "Code of Ethics". He noted that although this section applies only to "public officials", Byron has compiled fully and beyond. He indicated that the City Council could consider a Charter amendment to include employees under the public official definition. Council Member Sandahl stated that it probably is too restrictive to not allow employees or their families to operate a business in the City. He indicated the Council could consider the Charter amendment as mentioned by Mr. Harms. Special Meeting Minutes -7- April 19, 1993 City Attorney Dean reviewed the potential of future conflict of interest issues. Council Member Priebe stated some discomfort with the new relationship created as it may relate to future issues. He stated it may be worthwhile to investigate a Charter amendment or policy related to employee conflict of interest. M/Susag, S/Sandahl that the City Council receive and accept the disclosure of Byron Wallace. Motion carried 5-0. M/Sandahl, S/Susag that the City Council approve the following recommendations: • Amend the City Charter to include employees as well as public officials. • Adopt a disclosure policy for City employees similar to those requirements imposed on HRA employees. • Adopt a policy similar to the requirements of State Statute but which broaden the proscribed conflicts to include those that affect personal as well as financial interest. This tune of policy would reach situations where City officials or employees have decision making powers over matters that would affect close, personal family ties. Motion carried 5-0. M/Luettinger, S/Susag that the HRA receive and accept the disclosure statement of Byron Wallace. Motion carried 5-0. ADJOURNMENT The Richfield City Council and the Redevelopment Authority both adjourned unanimous consent at 8:30 p.m. Date Approved: 4/26/93 ~~.~~~ Thomas P. Ferber City Clerk Richfield Housing and the concurrent meeting by t Martin Kirs h Mayor Jam s D. Prosser y Manager