02-24-97 Regular
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Meeting
February 24, 1997
CALL TO ORDER
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.
ROLL CALL
Members Present:Martin Kirsch, Mayor; Michael Sandahl; Susan Rosenberg; Russ
Susag; and Kristal Stokes.
Staff Present :James Prosser, City Manager; Steven Devich, Administrative
Services Director; Thomas Ferber, City Clerk; Bruce Palmborg,
Community Development Director; Mike Eastling, City Engineer;
Gretchen Blank, Leisure Services Coordinator; Randy Hughes,
Operations Coordinator; Vaughn Lambert, Police Captain; William
Fillmore, Liquor Operations Director; and Corrine Thomson,
Assistant City Attorney.
APPROVAL OF MINUTES
M/Susag, S/Stokes to approve the minutes of the Regular City Council Meeting of
February 10, 1997.
Council Meeting Minutes-2-February 24, 1997
Motion carried 5-0.
Item #1OPPORTUNITY FOR PERSONS TO ADDRESS THE CITY COUNCIL ON
ANY ITEM NOT LISTED ON THE AGENDA.
No one wished to address the Council.
Item #2PRESENTATION OF PROCLAMATION SUPPORTING THE ASSOCIATION
OF MARKETING STUDENTS (DECA).
Mayor Kirsch read and presented a proclamation supporting the Association of
Marketing Students (DECA) and declaring February 1997 as DECA Free Enterprise
Month in the City of Richfield to DECA student representatives.
DECA student Megan Lindstrom reviewed and answered questions regarding the
Association of Marketing Students activities.
Item #2APRESENTATION OF PROCLAMATION PROCLAIMING FEBRUARY 1997
“WE LOVE OUR KIDS” MONTH.
Council Member Stokes read a proclamation regarding the designation of February
1997 as “We Love Our Kids” month in the City of Richfield.
Item #3 COUNCIL APPROVAL OF AGENDA
M/Sandahl, S/Stokes to approve the agenda.
Motion carried 5-0.
Item #4 CONSENT CALENDAR
Council Meeting Minutes-3-February 24, 1997
Council Member Rosenberg asked about the use of the revenues the City will
receive from the lease agreement with Airtouch Cellular.
City Manager Prosser stated that the funds would be kept in reserve until the City
Council’s budget discussion at which time the use for these revenues will be decided.
A.APPROVED AGREEMENT WITH ROI PROPERTIES FOR PROPERTY
MANAGEMENT SERVICES AT 6758 PORTLAND AVENUE C.L. 56
B.APPROVED LEASE AGREEMENT FOR ANTENNA SPACE WITH AIRTOUCH
CELLULAR FOR PENN AVENUE WATER TOWER C.L. 57
M/Sandahl, S/Susag to approve the consent calendar.
Motion carried 5-0.
Item #5PUBLIC HEARING AND CONSIDERATION OF RESOLUTION REGARDING
URBAN HENNEPIN COUNTY YEAR 1997 COMMUNITY DEVELOPMENT
BLOCK GRANT ALLOCATION. C.L. NO. 58
City Manager Prosser reviewed Council Letter No. 58 regarding the proposed
allocation of Year 1997 Community Development Block Grant (CDBG) funds as follows:
1. Housing Improvements:
a. Housing Rehabilitation$143,512
b. Scattered Site Housing$ 72,000
2. Public Service:
a. H.O.M.E.$ 22,700
b. G.M.D.C.A. Child Day Care$ 10,331
c. CASH$ 5,000
Grace Norris, 1628 Elliot Avenue, representing the Greater Minneapolis Day Care
Association (G.M.D.C.A.), described the G.M.D.C.A. program and its impact on Richfield
families.
Council Member Stokes asked about previous year’s allocations for removal of
architectural barriers.
City Manager Prosser stated that these allocations had helped to partially fund
building modifications such as the power assist doors and restrooms to meet the
requirements of the Americans with Disabilities Act (ADA).
Council Meeting Minutes-4-February 24, 1997
Council Member Rosenberg acknowledged the Richfield Community Human
Services Planning Council (RCHSPC) for their work in providing the Council with
recommendations regarding public service funding for CDBG funds.
M/Susag, S/Sandahl to close the public hearing.
Motion carried 5-0.
M/Rosenberg, S/Susag 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. 8443
RESOLUTION AUTHORIZING PROJECTED USE OF FUNDS FOR 1997 URBAN
HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AND
AUTHORIZING SIGNATURE OF SUBRECIPIENT AGREEMENT WITH HENNEPIN
COUNTY AND ANY THIRD PARTY AGREEMENTS
Motion carried 5-0. This resolution appears as Resolution No. 8443 in Resolution
Book No. 66.
Item #6CONSIDERATION OF APPROVAL OF WORKERS COMPENSATION
CLAIM SETTLEMENT. C.L. NO. 59
City Manager Prosser reviewed Council Letter No. 59 regarding approval of a
proposed settlement of a workers’ compensation claim.
M/Sandahl, S/Susag to approve the proposed Stipulation of Settlement for the
workers’ compensation claim as outlined in Council Letter No. 59 subject to final approval
of the stipulation language by all parties involved.
Motion carried 5-0.
Item #7CONSIDERATION OF REQUEST FOR DETERMINATION ON
APPROPRIATE ZONING CLASSIFICATION FOR COMMERCIAL
BUSINESS AS COMPONENT OF GOVERNMENT FACILITY. C.L. NO. 60
City Manager Prosser reviewed Council Letter No. 60 regarding Council
determination of the appropriate zoning classification for a commercial business as a
component of a government facility.
Council Meeting Minutes-5-February 24, 1997
Dan Linnihan, 6345 Logan Avenue, Chair of the Planning Commission, stated that
the Planning Commission had voted unanimously to recommend in favor of the
determination that Hat Trick Hockey be considered a use accessory to the principal
recreational use of the ice arena.
Council Member Sandahl stated that there has been some concerns expressed
about this proposal regarding whether it was appropriate or whether it should have been
open to other bids. He asked Mr. Linnihan if the Planning Commission had discussed
these issues.
Mr. Linnihan stated that those issues had not come before the Planning
Commission, however they felt it was a creative and reasonable proposal. He stated that
he personally felt that Mr. Sachs had initiated a creative proposal to present to the City for
consideration and that the City would entertain any other reasonable proposal that might
be presented for consideration by others.
M/Sandahl, S/Susag to make the determination that the proposed skating-related
commercial business be classified as a permitted accessory use to the ice arena.
Motion carried 3-2. (Stokes, Rosenberg opposed)
Item #8CONSIDERATION OF TERMS OF LEASE AGREEMENT WITH HAT TRICK
HOCKEY FOR ICE ARENA ADDITION AND AUTHORIZATION TO
PROCEED FOR ADVERTISEMENT FOR BIDS. C.L. NO. 61
City Manager Prosser reviewed Council Letter No. 61 regarding the proposed
terms of a lease agreement with Hat Trick Hockey for an ice arena addition.
Council Member Stokes discussed her desire for the inclusion in the lease or other
way related to this project to provide some benefit for children.
City Manager Prosser indicated that currently ice arena revenues do not meet
expenses, therefore, after repayment of construction costs there may be an indirect
benefit to children if the increased revenues were used to keep fees down.
Council Member Rosenberg stated opposition to the proposed project and to the
lease, particularly to the lease provision for reimbursement for a portion of the
architectural fees to Mr. Sachs if the lease were not renewed by the City.
Council Member Sandahl stated he also has some concern about that provision but
understood that this was part of the negotiated proposal with Mr. Sachs with staff
representing the City’s interest.
Lawrence Wozniczka, 6744 Wentworth Avenue, stated concerns regarding the
following:
Council Meeting Minutes-6-February 24, 1997
x
The 7% rate of return in the first year of the lease being less than the interest on
a recent bond sale.
x
Public liability if there is an overrun in construction costs.
x
The terms of amortization.
x
The specifics related to gross sales revenues to the City.
Council Member Susag stated that the rate of return escalates from 7% to 12%
over the 6 year term.
City Manager Prosser discussed the amortization and potential City use of the
addition if the lease is not renewed.
Dean Hanson, 6600 Oakland Avenue, owner of the building currently the location
of Hat Trick Hockey, stated he had concerns about this proposal because he was uniquely
affected by it. He stated he felt it interfered with his lease negotiations with Mr. Sachs and
free enterprise.
Council Member Stokes asked if there were any restrictions on the reuse of the
existing Hat Trick Hockey site.
City Manager Prosser stated that the site would have no restrictions outside of its
zoning and the building code if the building is remodeled.
Council Member Susag asked if there were any legal issues related to Mr.
Hanson’s concerns.
City Attorney Thomson indicated that the situation was analogous to any tenant
negotiating for competitive locations.
Robert Dietl, 6837 Newton Avenue, a member of the Community Services
Commission, stated that the Community Services Commission had voted to support this
concept with two members voting in opposition. He stated the Commission felt the
concept was acceptable if the rate of return was reasonable. He suggested that since
there were some concerns in the community and possibly the need for more information
about this concept, that the City Council should postpone the decision and hold public
hearings for further public input on this issue.
Steve Sachs, 9548 10th Avenue South, the son of the owner of the Hat Trick
Hockey business, stated that the City of Plymouth is using a similar public/private
partnership concept with Lifetime Fitness to build a recreation facility/athletic club. He
stated that the negotiated term for reimbursement of $6,000 of the $20,000 architectural
costs is reasonable since the City will benefit from the vestibule improvements with
increased energy efficiency in the arena and the building addition if the lease is not
renewed. He stated the contractor who constructed the locker room improvements had
been asked for an estimate for this work so it should be accurate in that they just finished
a project at the arena.
Council Meeting Minutes-7-February 24, 1997
City Manager Prosser stated that if the construction bids are not acceptable, the
City could reject the bids or renegotiate the lease.
M/Susag, S/Sandahl to authorize the City Manager to execute the terms of a lease
agreement based on the terms stated in Council Letter No. 61 and authorize the
advertisement for bids for construction of the ice arena lease agreement.
Motion carried 3-2. (Stokes, Rosenberg opposed)
Council Member Sandahl suggested that in the future that staff notice as public
hearing issues such as this that may benefit from further public input and discussion.
Discussion followed regarding how to identify such issues and the public hearing
notification.
Item #9AIRPORT STATUS REPORT
City Manager Prosser reviewed the status of the following airport related issues:
x
MASAC is scheduled on February 25 to discuss the noise impact of Runway 4-
22 on southeast Richfield.
x
Runway 4-22 litigation - The purpose of the litigation has been met at this time
because no permanent noise redistribution or movement of the take off point will
occur until such time as approval for the taxiways is obtained. He stated that
the City has proposed to dismiss the lawsuit without prejudice at this time,
however, MAC has not agreed to this proposal so far.
x
The North/South Runway E.I.S. is scheduled to be released in June of 1997.
x
The City is proceeding in obtaining information on ground level noise exposures
related to the proposed North/South runway and analysis of possible mitigative
measures.
x
MAC Termination of Lease Agreement for Rich Acres Golf Course and Other
Recreation Facilities - Litigation has been initiated with the trial anticipated to
be held in late 1997. The City is looking at alternatives for the replacement of
recreational facilities including working with the Metropolitan Council regarding
the golf course and exploring alternative space for the community gardens at
the Wood Lake Nature Center.
Item #10LEGISLATIVE REPORT
City Manager Prosser reported on the status of the following legislative initiatives:
x
Pension Consolidation - Richfield Fire Relief Association
x
“This Old Apartment” Property Tax Adjustment
Council Meeting Minutes-8-February 24, 1997
x
Recovery of D.W.I. arrest costs
Item #11COUNCIL DISCUSSION ITEMS
Operations Coordinator Hughes reported on the status of pot hole repairs in the
City.
Liquor Operations Director Fillmore reported on the opening of the City’s fourth
liquor store, the Shops at Lyndale Wine & Spirits.
Council Member Rosenberg commended the recreation staff and consultants for
their work with residents in the determination of the plan for the redevelopment of
Sheridan Park.
City Manager Prosser invited the public to the Richfield Hockey Association
fundraiser featuring Team Media vs. Richfield Coaches on March 2, 6:45 p.m., at the
Richfield Ice Arena.
Council Member Susag discussed the following issues:
x
VEAP Snowball Golf Tournament
x
Snow removal around fire hydrants
x
Augsburg Park Friends of the Library Book Sale - March 8, 10 a.m. - 2 p.m.
Item #12CLAIMS AND PAYROLL
M/Sandahl, S/Rosenberg that the following claims and payrolls be approved:
RICHFIELD BANK & TRUST CO.
Checks: 64796-64860; 65174-65491$1,391,420.72
FIRSTAR BANK
Payroll: 102273-102308; 102313-102582$421,891.25
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:24 p.m.
Council Meeting Minutes-9-February 24, 1997
Date Approved:
Martin J. KirschMayor
Thomas P. FerberJames D. Prosser
City ClerkCity Manager