06-03-96 Worksession
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Study Session
June 3, 1996
CALL TO ORDER
The meeting was called to order by Mayor Kirsch at 7:00 p.m.
ROLL CALL
Members Present:Martin Kirsch, Mayor; Susan Rosenberg; Michael Sandahl; Russ
Susag; and Don Priebe.
Staff Present :James Prosser, City Manager; Steven Devich, Administrative
Services Director; Bruce Palmborg, Community Development
Director; Jack Erskine, Public Safety Director; Thomas Ferber, City
Clerk; Randy Hughes, Operations Coordinator; Jamie Verbrugge,
Media Assistant; Julie Urban, Zoning Administrator; Dennis
Neudecker, Chief Building Official; Dennis Johnson, Human
Services Planner/Coordinator; and Corrine Thomson, Assistant City
Attorney.
Item # IMEETING WITH RICHFIELD FRIENDSHIP CITY COMMISSION.
S. S. LETTER NO. 19
Joanne Ehren Dahlquist, Chairperson of the Friendship City Commission,
discussed and answered questions regarding the following Friendship City Commission
topics:
x
Tour ‘96 - the commission sponsored tour of Heredia, Costa Rica by a
delegation of 21 people
x
Children’s library assistance project
x
Nursing home assistance project
Study Session Minutes-2-June 3, 1996
x
Assistance to children’s environmental trip to Costa Rica
x
Meeting with Consulate Tony Anderson and three other Minnesota cities who
have sister cities in Costa Rica
x
Video exchange project
x
Soccer exchange program
x
Participation in the Fourth of July parade
x
Projects to link Richfield groups such as the Lions Club and church groups with
similar groups in Heredia
x
Informal student exchanges
x
Richfield High School Spanish class trip to Costa Rica
Item # IIDISCUSSION REGARDING EXPANSION OF CHARITABLE GAMBLING
(PULL TABS) AND REVIEW OF DRAFT ORDINANCE.
S.S. LETTER NO. 20
City Manager Prosser reviewed Study Session Letter No. 20 regarding the issue of
the expansion of charitable gambling (pull tabs).
Public Safety Director Erskine reviewed the background regarding previous Council
action on this issue. He summarized the discussions with the S.P.O.R.T.Y. (Supporting
Program Opportunities for Richfield’s Talented Youth) group, the VFW, and residents
opposed to the expansion of charitable gambling. He stated everyone is in agreement
that there needs to be a way to support youth sports, but there is not an agreement on the
method. Public Safety Director Erskine stated that the City Attorney has drafted a new
proposed ordinance which would accomplish the following:
1.The licenses would be limited to non-intoxicating, 3-2 on-sale liquor or club
(V.F.W., Legion) organizations.
2.The organization must have been established in Richfield for three years prior to
application and (a) have an office in Richfield as its principle place of business; and
(b) that substantial services and substantial funds are spent in Richfield.
3.Limits to three the number of licenses held by one organization.
4.The remainder of the ordinance deals with the regulatory function and closely
patterns State law (regulation) and a similar ordinance passed in Minneapolis.
Rick Jabs, representing S.P.O.R.T.Y., spoke in support of the expansion of
charitable gambling to allow local organizations such as S.P.O.R.T.Y. to utilize the
proceeds to maintain affordable youth sports activities. He stated S.P.O.R.T.Y. is also
pursuing other fundraising activities. He stated keeping the costs down and the activities
affordable allows access to children at risk. He stated this is beneficial to the community
as a whole.
Study Session Minutes-3-June 3, 1996
Tim Erlander, 7500 Thomas Avenue, stated that there is a need to support youth
sports but that gambling is not the appropriate method. He reviewed the experience of
the Minneapolis Exchange Club with pulltabs indicating there is a lot of time and effort
required for a very small amount of money. He noted that pulltab operations are
decreasing and becoming less profitable. He stated gambling is detrimental to the
community and that other alternatives for fundraising should be explored to support youth
sports. Mr. Erlander suggested that perhaps a portion of the profits from the new fourth
municipal liquor store could be used for youth sports or writing down the cost of ice time at
the ice arena. He stated opposition to the proposed ordinance amendment.
Leon Lunas, representing the VFW Post 5555, reaffirmed the VFW position that
they have no objection to granting another pulltab license to Richfield residents for a
single entity or three off site locations for the benefit of Richfield residents such as the
Richfield Youth Sports.
Council Member Susag asked if pulltab revenues are declining.
Mr. Lunas stated that gross and net receipts have declined significantly in the last
five years.
Roger Ose, 6824 10th Avenue, discussed statistics regarding the VFW pulltab
gross receipts, costs, and taxes. He stated there has been an increase in costs and a
large decrease in the amount available for charitable contributions since 1993.
Council Member Sandahl stated that the issue is whether to allow the expansion of
charitable gambling with appropriate controls. He stated concern on what would happen
with the license if S.P.O.R.T.Y. would drop the license if it were found not to be profitable
enough.
Pat Hirabayashi, representing S.P.O.R.T.Y., stated that proposed ordinance would
limit licenses to a Richfield organization.
Public Safety Director Erskine reviewed and answered questions regarding the
proposed ordinance provisions and limits as to who is eligible to obtain a license.
Bill Young, President of the Richfield Hockey Association, discussed a recent
ordinance regarding pulltabs passed in White Bear Lake which required that 60% of the
licensed organization membership must live in the community. Mr. Young stated concern
that the proposed ordinance as drafted would limit the new pulltab locations to on-sale 3.2
liquor locations. He stated concern that the ordinance not be so restrictive as to impede
the ability to make a profit. He stated that he supported limiting licenses to Richfield
organizations and that it was important to provide this opportunity to help youth sports.
Public Safety Director Erskine stated that it was proposed to limit the additional
licenses for pulltabs to 3.2 liquor locations to make it more manageable for compliance.
He stated the City Attorney had expressed some reservations about resident membership
percentage requirements.
Study Session Minutes-4-June 3, 1996
Rick Jabbs, S.P.O.R.T.Y., stated that if licenses are restricted to 3.2 liquor
establishments, S.P.O.R.T.Y. would again seek to locate at Sandy’s Tavern.
Council Member Rosenberg stated that the expansion of charitable gambling is a
community standards issue. She stated that the community standard and precedent for
allowing gambling in the community exists at bingo at churches, pulltabs at the V.F.W.
and the American Legion, raffles at schools, the lottery tickets at liquor stores and other
retail stores. She stated that it is a different issue if people want to discuss changing the
community standard accepting gambling. She stated she supports S.P.O.R.T.Y. being
able to obtain a license because it would benefit the children of the community.
Public Safety Director Erskine answered questions regarding the eligibility of
Richfield non-profit organizations for a charitable gambling license under the proposed
ordinance.
Roger Ose, 6824 10th Avenue, asked who would provide the up front money for
S.P.O.R.T.Y. to start a pulltab operation.
Rick Jabs, S.P.O.R.T.Y., stated that the organizations belonging to S.P.O.R.T.Y.
would provide the funds.
It was the consensus of the City Council that the staff schedule Council
consideration of first reading of the proposed ordinance for a June City Council meeting.
Item #IIIDISCUSSION AND PROGRESS STATUS OF CABLE REFRANCHISING
ORDINANCE WITH PARAGON CABLE. S.S. LETTER NO. 21
City Manager Prosser reviewed Study Session Letter No. 21 regarding the status of
negotiations related to the renewal of the franchise agreement between the Southwest
Suburban Cable Commission (SWSCC) and Paragon Cable.
Adrian Herbst, attorney representing SWSCC, presented an overview of the cable
franchise renewal process and a calendar of required events for the franchise renewal
process.
Theresa Harris, attorney representing SWSCC, summarized and discussed the
proposed language regarding the following major issues of negotiation outlined by the
City Managers and Paragon Cable:
1.PUBLIC ACCESS
x
Public Access Channels
Paragon will continue to provide four public, educational and
government(PEG) access channels.
x
Studio/Facilities
Study Session Minutes-5-June 3, 1996
Paragon Cable will provide one large facility containing one studio with the
current square footage of the Eden Prairie studio for public, educational and
governmental access which will be located in Eden Prairie. The studio will
have the capacity for audience participation. The facility will include two
separate editing suites, storage space and the entire facility will be
wheelchair accessible. The facility shall have more hours than currently
provided, including regular hours during the week, weekend hours and some
week night hours.
x
Equipment
No agreements have been reached on the equipment which will be
necessary in the new studio.
x
Funding for PEG Access
Paragon shall provide $200,128 for PEG access. This will be itemized as a
separate line item on each customer’s bill. (Approximately 31¢ per month
per customer.) Paragon will no longer be required to provide the access
news show.
x
Public Access Users.
If the cities request, Paragon Cable will work with the cities to charge a
nominal fee to users of the PEG access facility.
2.CUSTOMER FOCUS
x
Commercial Channels.
Grantee agrees to build a system having a capacity of 750 MHz, Paragon
will initially use the 54 MHz-550 MHz section of the system to deliver analog
signals and reserve the 550 MHz to 750 MHz section for digital applications.
x
Social Contract.
The Social Contract between Time Warner Cable and the Federal
Communications Commission is acknowledged as enforceable exclusively
by the FCC.
x
Technological Changes.
The City may request a state-of-the-art review at any time between the sixth
year anniversary and the twelfth year anniversary of the granting of this
Franchise.
x
Periodic Customer Surveys.
The Grantee shall upon request of the City and at times mutually agreed
upon by the parties, but no more frequent than once every three years
conduct a random survey of a representative sample of subscribers.
x
Customer Service Standards.
The Grantee shall comply with the customer service standards of the
Federal Communications Commission as such standards may from time to
time be amended.
x
Line Extension.
The Grantee shall within 12 months of receiving a request, extend the
System to any residences within the City served by City water and sewer
facilities.
3.CITY GOVERNMENT
Study Session Minutes-6-June 3, 1996
x
Franchise Fees.
The City Managers and Paragon have tentatively agreed to a 5% franchise
fee. Both parties, however, are negotiating additional language which would
provide a “level playing field” for other wired competitors who offer a cable-
like service.
x
Government Access Channels.
Paragon Cable will maintain the current government access channel.
x
Override of the Government Access Channel.
Paragon Cable agrees to provide the capability so that each City, from its
City Hall, can switch its government access channel to whatever
programming the City determines will be carried on its government access
channel within the City.
x
Construction Requirements.
Paragon cable will provide 60 day notice to the City of any proposed
construction.
4.EDUCATIONAL NEEDS
x
Educational Access Channel.
Paragon and the City Managers have agreed to retain the two current
educational access channels.
x
Service to the Schools and Government Buildings.
Service to Public Schools and Public Buildings - The Grantee shall continue
to provide one outlet of Basic Service, the Cable Programming Service Tier
and one converter, if needed, to those facilities.
Service to Private Schools - For the first five years after the effective date of
the ordinance, Grantee shall provide one outlet of Basic Service, the Cable
Programming Service Tier and one converter.
x
Cable Nodes System Connect.
Paragon Cable will locate its “nodes” near schools where possible. Cities
will provide maps showing the location of the schools.
5.EDUCATIONAL NEEDS
x
High Speed Data Transmission.
Paragon Cable will provide high speed data services when there is sufficient
marketplace demand based on Paragon’s assessment of the demand.
x
System Upgrade.
Grantee agrees to build a system having a capacity of 750 MHz. The rebuilt
system will be two-way. Time Warner will complete the upgrade in three
years.
x
Level Playing Field Provision.
Paragon and the cities are currently negotiating a “level playing field”
provision which will address how other wired competitors which provide
cable or cable-like services will affect the franchise terms agreed to by
Paragon. Paragon has suggested reduction to a 2% franchise fee “floor” in
the event another wired cable provider begins operating within the SWSCC
area and is not subject to the provisions of the franchise ordinance.
Discussion followed regarding the “level playing field” provision.
Study Session Minutes-7-June 3, 1996
Council Member Sandahl spoke in opposition to any provision which would
automatically reduce the franchise fee if another provider begins operating in area. He
stated it would not be wise to agree to provide an automatic reduction prior to the
occurrence of the situation.
Wayne Knighton, Paragon Cable Division President, discussed the proposed $30
million investment by Paragon Cable in the Southwest Cable Franchise. He discussed
Paragon’s interests in maintaining a “level playing field” to protect their investment.
Council Member Priebe stated that both sides should negotiate in good faith if
another provider arrives. He stated the cities should immediately notify Paragon and then
proceed to negotiate after the terms of the competition are known.
Mr. Knighton responded to questions regarding the ownership interests in Paragon
Cable and the relationship to other corporations.
Item #IVDISCUSSION OF CITY SIGN ORDINANCE AND POSSIBLE REVISIONS.
S. S. LETTER NO. 22
City Manager Prosser reviewed Study Session Letter No. 22 regarding the City‘s
sign ordinance.
Julie Urban, Zoning Administrator, reviewed sign regulation issues regarding
aesthetics, community image, standards, safety, and effectiveness. She provided an
overview of the history of the City’s sign ordinance regulations and 10 year amortization
provision which will make some signs in the City non-conforming as of October 1997.
Public Safety Director Erskine reviewed pictures and examples of non-conforming
signs that exist in the City. He indicated City staff is preparing to notify the owners at this
time.
City Attorney Thomson reviewed enforceability issues regarding sign amortization
provisions as follows:
1.Signs not located in areas adjacent to interstate and primary highways
The general rule is that a city may determine the useful life for a nonconforming
use and require that the nonconforming use cease at the end of that life. As
long as the “amortization period” is reasonable, the city is not required to pay
compensation.
The sign owner bears the burden of proving that the amortization period is
unreasonable.
Study Session Minutes-8-June 3, 1996
An amortization period of three years has been upheld as reasonable under the
circumstances.
2.Signs located in areas adjacent to interstate and primary highways.
Minnesota Statutes, Section 173.17(4) applies. This statute preempts the city’s
ability to remove signs subject to the statute by use of an amortization provision.
If the sign comes within the statute, removal can only be accomplished by
purchase, gift or eminent domain proceedings. Certain Attorney General
opinions and court rulings have put limitations on the reach of the statutes. The
rental stream generated by the sign can be used to determine the “market
value” of the sign and the amount of compensation required to be paid.
Dennis Neudecker, Chief Building Inspector, reviewed the estimated costs of sign
removals and related issues.
City Attorney Thomson reviewed recommended sign ordinance changes regarding
the allowance for residential commentary signs, ordinance clarifications, temporary signs,
and inflatable adverting devices.
Public Safety Director Erskine stated staff would proceed to initiate the notification
process.
Item #VDISCUSSION OF REQUEST TO CHANGE FROM CURRENT SYSTEM OF
FUNDING HUMAN SERVICE AGENCIES ON A ONE-YEAR FUNDING
CYCLE TO TWO-YEAR FUNDING CYCLE CONTINGENT ON
AVAILABILITY OF FUNDS, EFFECTIVE WITH 1997 FUNDING CYCLE.
S. S. LETTER NO. 23
City Manager Prosser reviewed Study Session Letter No. 23 regarding the request
of the Richfield Community Human Services Planning Council to change the funding cycle
for human service agencies from the current one year funding cycle to a two year funding
cycle contingent on the availability of funds, beginning in 1997.
Dennis Johnson, Human Service Planner/Coordinator reviewed the current trends
in resources for human services.
It was the consensus of the City Council that the City Manager propose for Council
consideration in the 1997 budget a two year funding cycle for human service agencies
based on priority needs with the second year being contingent upon available funds.
Item #VIDISCUSSION OF POLICY AND STRATEGY RECOMMENDATIONS FOR
Study Session Minutes-9-June 3, 1996
AIRPORT RELATED ISSUES. S. S. LETTER NO. 24
City Manager Prosser reviewed Study Session Letter No. 24 regarding recent
developments on airport issues including the following:
x
MSP Expansion
x
Runway 4-22
x
MASAC
x
New Ford Town and Rich Acres Acquisition
x
Part 150 Sound Insulation Program
Council Member Priebe discussed equal protection issues related to the impact of
a proposed 3rd parallel runway on Richfield.
Item #VIIDISCUSSION REGARDING GENERAL TAXPAYER RESPONSIBILITY FOR
PORTION OF COSTS TO MAINTAIN SPECIAL AMENITIES IN
REDEVELOPMENT AREAS. S.S. LETTER NO. 25.
City Manager Prosser reviewed Study Session Letter No. 25 regarding general
taxpayer responsibility for a portion of the costs to maintain special amenities in
redevelopment areas.
Randy Hughes, Operations Coordinator, reviewed the LHN and ILN assessment
policy and examples of how the General Fund presently supports services to these areas.
City Manager Prosser noted that the City Council had suggested consideration of
raising the tax levy to cover any increased General Fund liability for the assessment
areas. He stated concern that no reduction in street maintenance funding occur.
Operations Coordinator Hughes reviewed maintenance operations in the ILN and
LHN. He answered questions regarding future maintenance cost estimates, maintenance
policies and maintenance responsibilities along the 77th Street corridor.
It was the consensus of the City Council to continue the assessment process with
no changes.
ADJOURNMENT
Study Session Minutes-10-June 3, 1996
The meeting was adjourned by unanimous consent at 10:01 p.m.
Date Approved:
Martin J. KirschMayor
Thomas P. FerberJames D. Prosser
City ClerkCity Manager