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07-10-95 Regular CITY OF RICHFIELD, MINNESOTA REGULAR CITY COUNCIL MEETING July 10, 1995 Martin Kirsch, Mayor; Susan Rosenberg; and Don Priebe. MEMBERS PRESENT: Russ Susag and Michael Sandahl. James Prosser, City Manager; Steven Administrative STAFF PRESENT: Services Director; Donald Fondrick, Community Services Director; William Fillmore, Liquor Operations Director; Jack Erskine, Public Safety Directory; Thomas Ferber, City Clerk; Bruce Palmborg, Housing and Redevelopment Coordinator; and John Dean, 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 S/Rosenberg to approve the minutes of the Special City June and June 26. 1995: the minutes of the Regular City of 26. the City Council Closed Executive Session of June Item OPPORTUNITY FOR PERSONS TO ADDRESS THE CITY COUNCIL ON ANY ITEM NOT LISTED ON THE AGENDA. Lou Sullivan, ownerof the Tom Thumb Superette, 7600 Knox Avenue, stated concerns about pedestrian safety if the sidewalk on the south side of 76th Street is removed as part of the proposed 76th Street, I-35W to Xerxes Avenue street improvement project. He requested that the plan be modified to keep the sidewalk. City Manager Prosser stated that the City Council has approved a concept for 76th Street I-35W to Xerxes Avenue and authorized staff to prepare plans for Council approval. He indicated staff would try to maintain the sidewalk in some areas if it is possible. IO. 1995 Community Services Director indicated that 76th Street east of Avenue provided different opportunities regarding the concept than west of Penn Avenue. Mayor Kirsch asked that staff notify Mr. Sullivan when the plan will be presented to the Council for approval. Council Member Rosenberg summarized a cultural exchange program which has brought 30 students from Poland to stay with host families in the Twin Cities. She introduced the-polish students and hosts who were in attendance. Council Member Rosenberg explained the City of Richfield’s form of government to the students. COUNCIL APPROVAL OF AGENDA Item Mayor Kirsch recommended the addition of an Item 7A. to the agenda: Consideration of Interim Appointment of Mayor Pro Tempore. S/Rosenberg to approve the aaenda as amended. Motion carried Item CONSENT CALENDAR DECEMBER CITY PROJECT NO. 893, AND SETTING DATE OF HEARING FOR AUGUST 28, 1995 C.L. 170 NO. 8351 RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR 1994 ALLEY MAINTENANCE AND SNOWPLOWING CITY PROJECT NO. 893 This resolution appears as Resolution No. 8251 in Resolution Book No. 65. RESOLUTION NO. RESOLUTIONFOR HEARING ON PROPOSED ASSESSMENT FOR 1994 ALLEY MAINTENANCE CITY PROJECT NO. 893 in Resolution Book No. 65. This resolution appears as Resolution No. 8252 July 10, 1995 1995 171 RESOLUTION NO. 8253 FOR THE COSTS OF RESOLUTION PROPOSING TO SPECIALLY ASSESS THE CITY OF RICHFIELD JANUARY THROUGH DECEMBER 31, 1996 CITY PROJECT NO. 913 This resolution appears as Resolution No. 8253 in Resolution Book No. 65. APPROVED RESOLUTIONS DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF ASSESSMENT ROLL FOR CITY PROJECT NO. LHN MAINTENANCE AND SETTING DATE OF HEARING FOR AUGUST 28, 1995 C.L. 172 NO. RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR LHN MAINTENANCE JANUARY 1, 1994 THROUGH DECEMBER 31, 1994 CITY PROJECT NO. 891 This resolution appears as Resolution No. 8254 in Resolution Book No. 65. RESOLUTION NO. 8255 RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT FOR LHN MAINTENANCE JANUARY THROUGH DECEMBER 31, 1994 CITY PROJECT NO. 891 This resolution appears as Resolution No. 8255 in Resolution Book No. 65. APPROVED RESOLUTION PROPOSING TO SPECIALLY ASSESS COSTS OF 1996 MAINTENANCE ASSESSMENTS, LHN REDEVELOPMENT AREA, CITY PROJECT NO. 912, AND FOR AUGUST 28, SETTING DATE OF HEARING 1995 173 RESOLUTION NO. 8256 RESOLUTION PROPOSING TO SPECIALLY ASSESS FOR THE COSTS OF CURRENT SERVICES PROVIDED WITHIN THE LYNDALE/HUB/NlCOLLET PROJECT AREA FOR THE PERIOD JANUARY THROUGH DECEMBER 31, 1996 CITY PROJECT NO. 912 This resolution appears as Resolution No. 8256 in Resolution Book No. 65. E. APPROVED RESOLUTIONS DECLARING COSTS TO BE ASSESSED REMOVAL OF DISEASED TREES FROM PRIVATE PROPERTY FOR JANUARY 1994 TO DECEMBER ORDERING PREPARATION OF ASSESSMENT ROLL AND SETTING DATE OF HEARING FOR AUGUST 28, 1995 174 RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR REMOVAL OF DISEASED TREES FROM PRIVATE PROPERTY FOR THE PERIOD JANUARY 1994 THROUGH DECEMBER 31, 1994 This resolution appears as Resolution No. 8257 in Resolution Book No. 65. RESOLUTION NO. 8258 RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT FOR REMOVAL OF DISEASED TREES FROM PRIVATE PROPERTY FOR THE PERIOD JANUARY 1, 1994 THROUGH DECEMBER 31, 1994 This resolution appears as Resolution No. 8258 in Resolution Book No. 65. F. APPROVED OF RESOLUTION AUTHORIZING APPROVAL OF COOPERATIVE AGREEMENT NO. 73314 WITH STATE OF MINNESOTA DEPARTMENT OF TRANSPORTATIONFOR STATE SHARE OF COSTS OF CONSTRUCTION AND CONSTRUCTION ENGINEERING SERVICES FOR HUMBOLDT AVENUE STORM SEWER PROJECT C.L. 175 NO. 8259 RESOLUTION AUTHORIZING APPROVAL OF COOPERATIVE AGREEMENT NO. 73314 WITH THE STATE OF MINNESOTA DEPARTMENT OF TRANSPORTATION REGARDING THE 77TH STREET PROJECT This resolution appears as Resolution No. 8259 in Resolution Book No. 65. APPROVED AGREEMENT WITH ORR-SCHELEN-MAYERON ASSOCIATES, INC.FOR CONSTRUCTION ENGINEERING SERVICES ON HUMBOLDT AVENUE STORM SEWER PROJECT OF 77TH STREET PROJECT C.L. 176 APPROVED AWARD OF TWO YEAR CONTRACT TO PROVIDE TOWING, IMPOUNDING AND STORAGE OF VEHICLES FOR CITY RICHFIELD TO MORROW AUTO SPECIALTY, INC. 177 APPROVED BID MINUTES/TABULATION AND AWARD OF CONTRACT FOR REHABILITATION OF SANITARY SEWER LINES TO VISU-SEWER CLEAN SEAL,INC. IN AMOUNT OF $149,610 C.L. 178 Council Meeting Minutes July 1995 APPROVED BID MINUTES/TABULATION AND AWARD OF PURCHASE ORDER FOR TWO SUBMERSIBLE PUMPS AT WATER PLANT TO QUALITY APPROVED BID MINUTES/TABULATION AND AWARD OF CONTRACT FOR 1995STREET LIGHT CHANGE OVER PROJECT TO NORTHERN STATES POWER COMPANY IN AMOUNT OF $83,740 C.L. 180 APPROVED PURCHASE IN EXCESS OF $5,000 FOR PUBLICATION OF 1995 FALL AND 19951996 WINTER SEASONAL BROCHURES FROM NYSTROM PUBLISHING COMPANY, INC. IN AMOUNT OF $10,738 C.L. 181 . APPROVED RENEWAL OF PIGEON LICENSE, 6837 RUSSELL AVENUE. . APPROVED FIRST AND FINAL PAYMENT FOR ROUTE AND SEAL CRACK IN BITUMINOUS PAVEMENT; BERGMAN COMPANIES INC. OF WISCONSIN; 0.APPROVED FINAL PAYMENT OF SITE CONSTRUCTION AT MADISON PARK, CP899; BARBER CONSTRUCTION COMPANY, INC.; M/Rosenberg, to approve the consent calendar. ternPUBLIC HEARING AND SECOND READING OF UPDATES TO SECTION 310 OF CITY CODE, PERSONNEL SECTION. C.L. NO. 182 City Manager Prosser reviewed Council Letter No. 182 summarizing the proposed ordinance amendments to update the personnel section of the city code. Rosenberg to close the public hearinq. S/Rosenberg that this constitute d Reading of Bill No. 1995-I 0, amendina Section 310 relatina to oersonnel matters: it be in the official newsoaoer and that it be made of these minutes. Council Meeting Minutes S/Rosenberg that the resolution be adooted. that it be in RESOLUTION NO. 8260 RESOLUTION APPROVING PUBLICATION OF BILL NO. 199510 Motion carried 3-O. This resolution appears as Resolution No. 8260 in Resolution Book No. 65. ItemPUBLIC HEARING AND CONSIDERATION OF RESOLUTION APPROVING REDEVELOPMENT PLANS AND TAX INCREMENT FINANCING PLANS FOR RICHFIELD REDISCOVERED PROGRAM. C.L. NO. 183 City Manager Prosser reviewed Council Letter No. 183 regarding modifications to the Richfield Rediscovered Redevelopment Plans and Tax Increment Financing Plans and the proposed 1995-I 996 Richfield Rediscovered Program. Larry Wozniczka, 6744 Wentworth Avenue, stated concerns about the level of payback to the development fund, the extra burden on City services from these larger homes, and the loss to the community of affordable housing ownership opportunities if the Mark Ruff, Publicorp Inc., reviewed the cash flow projections of the Richfield Rediscovered Program indicating proceeds from the land sales and tax increments generated by the new housing development over a 25 year period would pay back all of the principal. He indicated interest would vary from 2% 4%. Larry Wozniczka, 6744 Wentworth Avenue, asked questions about the estimated budget outlined on page 5-2 of the Council agenda. City Manager Prosser stated that there were additional benefits from the Richfield Rediscovered Program besides cash flow. He stated it was a City Council policy decision whether to continue the program. Council Member Rosenberg stated that the Richfield Rediscovered Program was very highly regarded by other communities. She stated support for the program because of the positive impact it has for the sense of community, families, and children. She noted that the sale of property for the program is voluntary. City Manager Prosser reviewed the Richfield Rediscovered Program approach and procedures regarding the acquisition of properties. Council Member Priebe stated that although it is desirable to replace substandard housing, he had questions whether it is best to use all of the limited resources on this program or to use those resources for other programs which may have a broader based affect on the community.He indicated that staff seems to favor this program over other alternatives. Council Member Rosenberg stated the positive residual benefits to the neighborhood resulting from the Richfield Rediscovered Program homes is hard to calculate in dollars. Mayor asked about the status of the number of potential sites for Richfield Rediscovered. Coordinator indicated that approximately 190 properties were initially identified based on value. He stated 40 Richfield Rediscovered homes have been constructedsince the program began in 1991. Lawrence Wozniczka, 6744 Wentworth Avenue, suggested that the City Council should designate that the proceeds from the land sales be used to payback the development fund since he saw no designation mentioned in the Council Letter. M/Rosenberg, close the public hearinq. M/Rosenberg, 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. RESOLUTION APPROVING THE REDEVELOPMENT PLANS AND TAX INCREMENT FINANCING PLANS FOR THE RICHFIELD REDISCOVERED PROGRAM Motion carried 3-Q. This resolution appears as Resolution No. 8261 in Resolution Book No. 65. ItemCONSIDERATION OF RESOLUTION REGARDING FINDINGS OF FACTS RELATED TO DENIAL OF COMMERCIAL KENNEL LICENSE TO JOEL D. DOCTOR OF VETERINARY MEDICINE, 710 WEST 66TH STREET. C.L. NO. 184 CityManager Prosser reviewed Council Letter No. 184 regarding consideration of a resolution of findings, conclusion, and decision related to the application of Joel D. for a commercial kennel license at the Pet Food Warehouse, 710 West 66th Street. He stated that because two Council Members were not present and three affirmative votes wereneeded to adopt the findings, the Council may want to continue the consideration of City Attorney Dean stated that the City Charter requires a majority vote of all members, not just a majority of those present, for a matter such as this. Council Member Priebe observed that if the Council Members present voted as they did on this matter on June 26, the three votes needed for adoption would not be achieved. He stated concern about delaying a final decision on this matter. rdina M/Rosen berg, fa West 66th Street to the City Council Motion carried 3-Q. ItemCONSIDERATION OF RESOLUTION APPROVING SPECIAL LEGISLATION AUTHORIZING ESTABLISHMENT BY HOUSING AND REDEVELOPMENT AUTHORITY OF NON-PROFIT HOUSING CORPORATIONS RELATED TO City Manager Prosser reviewed Council Letter No. 185 regarding consideration of a resolution to approve special legislation authorizing the HRA to establish non-profit housing corporations to accept the gift of three apartment communities from the Sage Corporation. Stuart Nolan, Stuart Properties, stated that he had been retained by the HRA to conduct a due diligence report regarding the proposal by Sage Corporation to transfer to the HRA ownership of the Hampton Place, Heritage Square, and Crestwood Apartment communities.He stated that tax benefits are the motivation for the Sage partnerships to propose transferring the ownership to the He stated the outstanding debt on the buildings is significantly less than the appraised value of the apartment units. Mr. Nolan stated that the financial projections for the buildings and proforma analysis indicate little risk to the HRA and considerable benefit from the proposed transaction. He recommended the HRA operate the properties with a business plan whereby the HRA would hire a professional management company to operate the buildings at market rents with appropriate maintenance and operating policies. Council Member Priebe asked if the properties had been inspected to assure their condition. Mr. Nolan stated a general initial inspection had been previously completed. He stated that a checklist inspection has been scheduled of all 422 units and mechanicals. City Manager Prosser stated the HRA intended to operate the units as a business in an equal competitive level with similar apartment communities with the potential for tenant screening and school partnership programs. Mayor stated that City Manager Prosser had made a presentation to the Richfield District School Board and staff regarding this proposal. He stated that Superintendent Larson had sent a letter to the City stating that the School Board strongly endorses this idea. Lawrence Wozniczka, 6744 Wentworth Avenue, asked about procedural issues related to City Council approval of this proposal. Attorney Dean stated that the City Council tonight would consider the approval City of the special legislation authorizing the to form non-profit housing corporations to manage the Sage units. He stated the City Council would then at their next meeting hold a public hearing on the proposed adoption of a housing program and housing plan related to the Sage properties. Larry Wozniczka, 6744 Wentworth Avenue, stated concern that the properties would become tax exempt and concern that the payment in lieu of taxes be equivalent. City Manager Prosser reviewed how the proposal and payments in lieu of taxes would impact the school district and other taxing jurisdictions. Council Member Priebe suggested the payment in lieu of taxes should be equal to the amount of taxes that would have been paid. City Manager Prosser stated that it is anticipated the payment in lieu of taxes would He stated be at least equal to or greater than the amount of taxes to governmental units. that in addition to those payments, some cash flow could be utilized for programs to assist other multi-family communities in the City. M/Rosenberg, that the followina resolution be adooted. that it be spread in the resolution book and that it be made part of these minutes: NO. 8262 RESOLUTION AUTHORIZING APPROVAL OF A SPECIAL AUTHORIZING THE RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY TO FORM NON-PROFIT HOUSING CORPORATIONS Motion carried 3-O. This resolution appears as Resolution No. 8262 in Resolution Book No. 65. Council Meeting Minutes ItemCONSIDERATION OF INTERIM APPOINTMENT OF MAYOR PRO TEMPORE Mayor Kirsch stated that both he and Mayor Pro Tempore Sandahl would be out of to noon town at the same time from noon on July 14 on July 22 necessitating the interim appointment of a Mayor Pro Tempore. to appoint Council Member as Mayor Pro Tempore for of time both Mayor Kirsch and Mayor Pro Tempore Sandahl are absent from the City. Motion 3-O. ItemAIRPORT STATUS REPORT City Manager Prosser reviewed the status of mediation related to the Runway 4-22 Extension Project. Media Assistant Verbrugge presented a status report and survey results regarding the Part 150 Sound Insulation Program. Item77TH STREET PROJECT STATUS REPORT Community Services Director reviewed and answered questions regarding the following 77th Street Construction Project issues: Concrete paving is currently occurring east of Portland Avenue. The concrete batch plant is operating at the Cloverleaf site. Trucks will use 77th Street east bound and return empty on 76th Street. The landscape and irrigation contractor is in town working on completing the Phase I landscaping. 12th Avenue will be open on approximately August 1. The contractor is working on the 77th Street and Portland Avenue intersection to reopen it as soon as possible. Council Meeting Minutes July 10, Item LEGISLATIVE REPORT Item 1 COUNCIL DISCUSSION ITEMS Council Member Rosenberg asked about the status of planning for I-35W and l-494 now that it has been announced that no major improvements are possible in the next 20 years due to lack of funding resources. Community Services Director indicated that because the Environmental Impact Statement process has yet to be completed, the l-494 and I-35W projects are still under study.He stated some repairs are now underway in the commons area. He indicated is considering extending the I-35W H.O.V. third lane north to 46th Street. Mayor asked about the status of the High Speed Bus proposal. City Manager Prosser stated that the legislature had authorized the Metropolitan Council to initiate testing the proposal. Council Member Rosenberg discussed concerns related to trash in the 66th Street and Penn Avenue area. She indicated that asking the adjacent businesses to address the City Manager Prosser discussed other options and approaches which could be used to address the problem. Item CLAIMS AND PAYROLLS M/Rosenberg, that the followina claims and payrolls be approved: RICHFIELD BANK & TRUST CO, Checks: 19847-l 9886; 53264-53485 BANK Checks: 8654-8667 Payroll: 87237-87649 ADJOURNMENT