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04-01-96 Worksession CITY COUNCIL MEETING MINUTES Study Session April 1, 1996 The meeting was called to order by Mayor Kirsch at 7:00 p.m. Martin Kirsch, Mayor; Susan Rosenberg; Russ Susag; and Don Members Present: Members Not Michael Sandahl. Present: James Prosser, City Manager; Steven Administrative Staff Present Services Director; Bruce Palmborg, Community Development Director; Jack Erskine, Public Safety Director; Thomas Ferber, City Property Appraiser. Groen, 2601 West 75th Street, representing the Richfield Fourth of July Committee, Inc., provided a status report on the budget revenues and expenditures for the 1996 Fourth of July celebration. He reviewed new ideas related to button sales and alternative fundraising activities. Mr. Groen stated that the sound system required for the Minnesota Orchestra will cost approximately $6,000, twice the cost of the sound system He asked for the City’s assistance with this extra cost by considering for previous years. adding $3,000 to the budget amount already approved for the 1996 celebration. City Manager Prosser reviewed Study Session Letter No. 13 regarding the 1996 Board of Equalization procedures. He noted that one impact of the City’s housing programs, such as Richfield Rediscovered, is higher values. Larry Miller, Hennepin County Principal Property Appraiser, reviewed and answered questions regarding the following Board of Equalization procedures and issues: Revaluation areas by assessment year. Initiation of Thursday evening appraisal appointments. 1995 MLS average sale price data for Richfield $92,260 in 1994 and $96,095 in 1995, an increase of approximately 4% over 1994. 1995 Hennepin County data showing Richfield’s history of residential growth up an average of 3.3% over 1994. Richfield residential sales statistical ratio of assessed value to sales price chart showing a median of Samples of subject property data, comparable grid data, and comparable sales pictures. Results of customer service survey. The new Hennepin County brochure entitled “Understanding Your Property Assessment” that will be distributed by appraisers. The minimum assessment agreements for Wood Lake Point. The minimum assessment agreements for the Lake Shore Drive condos. Market values of apartment buildings. Larry Wozniczka, 6744 Wentworth Avenue, suggested assessed market values should be provided in addition to sales data on comparable properties. He questioned the equity of the comparisons. Larry Miller, Hennepin County Principal Property Appraiser, explained the accepted statistical methods, statutory and court guidelines related the median ratio. Council Member Priebe stated agreement with Mr. Wozniczka indicating that he thought that it meant a higher standard for those that appeal. Item # óó CityManager Prosser reviewed Study Session Letter No. 14 regarding the desirability of providing additional off-street parking space at City Hall. He stated that approximately four years ago the Council directed staff to contact owners of the houses at 6734, 6754, and 6758 Portland Avenue about their interest in selling voluntarily to the City. of 6758 Community Development Director Paimborg stated that recently the owner interest in purchasing the property.He stated that is the reason the issue had been presented to the City Council for discussion. Council Member Susag asked what funding mechanism would be available for such a purchase. City Manager Prosser stated that it could possibly be funded by the Capital below the 1995 budgeted expenditures. Council Member Priebe asked about the profitability of the Deputy Registrar office indicating that if it was not profitable, the City should discontinue service since some of the parking shortage is a result of it. Administrative Services Director stated that the revenues of the Deputy Registrar exceed the expenses of the operation thus helping to fund other functions of the City Clerk Division. Council Member Priebe stated that the City is declining in population so there should be a reduction in the need for employees and parking at City Hall. Public Safety Director Erskine and City Clerk Ferber discussed how the shortage of parking is not only related to the Deputy Registrar office but to other activities and meetings at City Hall. Council Member Rosenberg asked if all three properties would be necessary and the tax value of the property. City Manager Prosser discussed proper buffering and alignment if additional parking were to be constructed on the site. He stated the tax value as approximately $1200 of which about 20% goes to the City. Lee Sveum, 6754 Portland Avenue, stated he did not wish to sell his property and intended to live there until death. City Manager Prosser stated properties would only be considered for purchase from willing sellers. Ron 7209 12th Avenue, stating the parking situation at City Hall is bad and suggested that maybe the Council should consider building a new City Hall inavacant without it and he would not look favorably on any expansion because the area and number of residents served is becoming smaller. Council Member Susag stated the acquisition of all three properties from willing sellers would be the preferred if the City were to use the property. needed in the future. He stated that City staff would bring back to the Council information on an appraisal of the property and funding options for their consideration of the inquiry asking if the City is interested in the purchase of 6758 Portland Avenue. City Manager Prosser reviewed Study Session Letter No. 15 regarding the identification of alternative funding sources to assist buyers and sellers to complete repairs required by the point of sale inspection process. Public Safety Director Erskine stated that the Public Safety Department and the Community Development Department had developed a cash escrow concept to address Certificate of Compliance is sought, the seller will not complete repairs by the time of closing, the buyer intends to comply at a future time in cooperation with the Building and the sales transaction provides the resources for repairs. The source of funds for the escrow is between the seller and buyer. The escrow agreement and funds should be provided to the Inspection Division on or before closing. If funds to make repairs are coming from proceeds of sale, should make the check payable to the City of Richfield and have the escrow agreement executed at closing by the parties. As the basis of determining the escrow amount, one written bid by a licensed contractor is required to reasonably determine the estimated cost of repairs. A separate account will be created by the Finance Division to hold on deposit and dispense funds when requested in accordance with the agreement. 7. One interim draw upon invoice submitted,will be allowed upon satisfactory completion and verification of work by theBuilding Official. 8. The remaining requirements are included on the escrow agreement form. It was the consensus of the City Council that staff proceed with the cash escrow program. City Manager Prosser reviewed Study Session Letter No. 16 regarding the issue of residency for members of the City’s advisory boards and commissions. He stated that John Dean, City Attorney, has suggested that the City adopt a resolution stating a residency requirement that includes all City advisory boards and commissions, unless a non-resident is restricted by law. Mr. Prosser suggested that the process should include the following: A notice to the public of vacancies and the required application. ¦ If no applications were received from qualified Richfield residents or after the ¦ interview the applicant was determined to be not qualified, it would be the Council’s discretion to appoint a qualified applicant who is a non-resident. Appointment of the non-resident would require a recommendation by a majority ¦ of the commission on which the individual is desiring to serve. The preference would be for a Richfield resident to be appointed. ¦ Ron Glaub, 7209 12th Avenue, Member of the Human Rights Commission stated that the commission has had difficulty recruiting and maintaining a full complement of members. He stated that there is merit in looking at qualified individuals who have a in Richfield but who are not residents. He noted that this issue has been vested interest raised because a clergy member of a Richfield congregation, who is not a resident, has expressed interest in serving on the Human Rights Commission. Public Safety Director Erskine indicated that this person also has been working with the Public Safety Department regarding youth issues in the community. Council Member Susag discussed the advantages of allowing non-resident members in certain cases when they have a vested interest or connection to Richfield. Mayor suggested that it would be appropriate to restrict non-residents to serving on the Human Rights Commissions and Friendship City Commission. Council Member Priebe suggested a stipulation that a maximum of two non- residents be permitted on these commissions. It was the consensus of the City Council that staff draft a policy for ùÍÇÎÙÓÐ consideration regarding residency requirements for members of the City’s advisory boards and commissions. City Manager Prosser reviewed Study Session Letter No. 17 regarding recent developments on airport related legislation and airport issues. Council Member Priebe presented and reviewed a letter to the editor that he intended to submit commenting on the impact of the proposed north-south runway. It was the consensus of the City Council that Mr. Priebe should identify himself as a Richfield City Council Member in the letter. Discussion followed regarding the potential impacts of the requirement for the conversion to Stage III aircraft by the year 1999. CityManager Prosser reviewed Study Session Letter No. 18 regarding the review of City Council salaries as provided by City ordinance and Council policy. Council Member Susag suggested that the Council consider basing a proposed increase on the amount of the 1996 salary adjustment for City employees in the General Services and Management pay plans which was 3%. He stated that this would be 1.5% peryear for the City Council since Council salaries were adjusted every two years. Council Member Priebe stated opposition to an increase of Council salaries. Council Member Rosenberg stated concern that salaries should not be kept too low so as not to exclude people from running for due to economic status. City Manager Prosser stated Council first reading consideration of a City Council salary adjustment would be scheduled for April 8. issuesamendment City Manager Prosser discussed related to a proposed charter City Attorney John Dean suggested that an Attorney General opinion could be requested regarding the constitutionality of the proposed amendment. It was the consensus of the Council that the City request the Attorney General opinion on the issue and that the City Manager not send the letter to the Charter Commission. City Manager Prosser stated that the City has received an inquiry regarding a tattoo parlor. He suggested that the City may wish to have the Advisory Board of Health review the need for regulation of this type of business. Council Member Priebe suggested that the City review the regulation of this type of business in other cities. City Manager Prosser discussed proposing a moratorium on tattoo businesses to allow time to study the issue. Council Member Susag stated that Governor had vetoed the legislation which would have revised the Metropolitan sewer charge process. The meeting was adjourned by unanimous consent at p.m. Date Approved: Martin J. Mayor James D. Prosser Thomas P. Ferber City Manager City Clerk