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07-07-97 Worksession CITY COUNCIL MEETING MINUTES Richfield, Minnesota Study Session July 7, 1997 CALL TO ORDER The meeting was called to order by Mayor Kirsch at 7:00 p.m. ROLL CALL Members Present:Martin Kirsch, Mayor; Michael Sandahl; Susan Rosenberg; Russ Susag; and Kristal Stokes. Staff Present :James Prosser, City Manager; Steve Devich, Administrative Services Director; Thomas Ferber, City Clerk; Michael Eastling, Public Works Director; Gretchen Blank, Recreation Services Director; William Fillmore, Liquor Operations Director; Betsy Christensen, Health Administrator; and Chris Regis, Finance Manager. Item #1ANNUAL MEETING WITH COMMUNITY SERVICES COMMISSION S.S. LETTER NO. 27 City Manager Prosser reviewed Study Session Letter No. 27 regarding the annual meeting of the City Council with the Community Services Commission. The following members of the Community Services Commission were present: Elayne Gilhousen, Chair Arnie Auchstetter Tom Loweth Robert Dietl Carolyn Krohn Maureen Scaglia Tim Erlander Study Session Meeting Minutes-2-April 7, 1997 Elayne Gilhousen, Chair of the Community Services Commission, summarized the advisory role of the Commission regarding park and recreation issues and the Capital Improvement Program (CIP). She discussed the concerns of the Commission regarding its relationship to the Friends of Wood Lake (FOWL) Board and the bylaws of FOWL. Discussion followed regarding the independent fund raising purpose of the FOWL Board and its connection to the Community Services Commission through the appointment of the FOWL Board membership. Community Services Commission Chair Gilhousen stated that the Commission desired to have a School Board representative and a Richfield Chamber of Commerce representative on the FOWL Board but were not sure that they had that authority through the bylaws. Robert Dietl, Community Services Commission Member, stated the Commission’s desire to enlarge its membership and at its next meeting, would request a liaison be added to represent these two organizations. He suggested in the future it would be a good idea to add these representatives to the FOWL Board as regular members. City Manager Prosser stated that staff would review the resolution creating the FOWL Board to see if the Commission can add to the membership to accommodate this suggestion. He also suggested that the Community Services Commission may want to forward a motion to the City Council formally recommending this change. Community Services Commission Chair Gilhousen reviewed the Commission’s discussion regarding the potential for a community recreation facility. Discussion followed regarding the upcoming community survey and other methods to receive community input on this issue, about the potential for MAC reimbursement for the loss of parks in New Ford Town and Rich Acres as one funding source to build a community recreation facility, and about the potential of inclusion of a rental banquet facility to help support the operational costs of such a community center. Tom Loweth, Community Services Commission Member, stated support for a new community center recreational facility as an important aspect in attracting and retaining residents in the City. Community Services Commission Chair Gilhousen stated that the Commission wanted the City Council aware that if a banquet facility were to be included, liquor would have to be allowed in the facility for it to be feasible and successful in renting for weddings, etc. She stated currently beer is not allowed in parks and this building would be located in a park. It was the consensus of the City Council that the Community Services Commission continue to study and gather information regarding the potential for a new community recreational facility. Maureen Scaglia, Community Services Commission Member, gave a status report on the work of the Master Park Plan subcommittee in updating the Master Park Plan. She reviewed the process of receiving input and information necessary to formulating Study Session Minutes-3-July 7, 1997 recommendations. She stated that the immediacy of the ball field replacement issue had delayed some of their work and that they are also waiting for further information from the upcoming community survey. Discussion followed regarding the issue of the advisability of park program fees and their impact on the ability of economically disadvantaged youth to participate in park programs. City Manager Prosser indicated this issue would be considered during this year’s budget discussions. Council Member Sandahl suggested the fee waiver program used for swimming pool passes would work as well for park program fees. The City Council thanked the Community Services Commission for their work on important community issues. Item #2PRESENTATION OF 1996 COMPREHENSIVE ANNUAL FINANCIAL REPORT. S.S. LETTER NO. 28 City Manager Prosser reviewed Study Session Letter No. 28 regarding the presentation by the firm of Deloitte & Touche LLP of the City’s 1996 financial audit. Eric Rangen, Partner, Deloitte & Touche LLP, presented an overview of the audit of the 1996 Comprehensive Annual Financial Report. Rob Wolf, Manager, Deloitte & Touche LLP, reviewed the schedule of findings and recommendations regarding federal program compliance relating to allowable costs and State of Minnesota compliance relating to claims. Mr. Wolf reviewed the auditor’s Commentary Report of observations and recommendations concerning the following administrative and operating matters: x Accounts Payable x Fixed Assets x Communication between Public Works and Finance Departments x 77th Street Project x Accounting and Reporting for Investments x Financial Reporting Model x Single Audit Act Changes x GFOA Recommended Practices x Sewer Fund Operations x Internal Service Fund x Computer Systems Mr. Wolf reviewed the status and responses to their 1995 recommendations. Study Session Minutes-4-July 7, 1997 Steve Dahl, Manager Deloitte & Touche LLP, reviewed and discussed graphs and charts regarding the following: x Net debt per capita x Enterprise operating ratios x Selected comparative financial indicators x General Obligation Bond rating x Management practices to avoid x Minnesota General Expenditures for fiscal years 1996 and 1995 x Federal General Fund spending x Selected comparison ratios regarding the number of full time employees x General Fund Revenues x General Fund Expenditures x Debt Service Schedule x Water, Sewer, and Recycling Utility Fund comparisons x Fund Equity - water & sewer and storm sewer funds x Water and Sanitary Sewer rates for cities using lime softening Lawrence Wozniczka, 6744 Wentworth Avenue, asked questions regarding the data related to the bond rating and number of full time employees. Mr. Dahl stated that the City’s overall bond rating from Moody’s Investor Service was AA and that new debt issuance of December 1, 1996 was rated AAA by Moody’s. He reviewed issues affecting full time employee comparisons between cities such as full time fire departments and golf courses. Item #3DISCUSSION OF STATUS OF AIRPORT RELATED ITEMS. S.S. LETTER NO. 29 Nigel Finney, MAC Deputy Executive Director of Planning and Environment, reviewed the request of Northwest Airlines to the Metropolitan Airports Commission for the extension of runways in order to provide additional service between the Twin Cities and Hong Kong. He stated that in order for the flights to occur, a minimum runway length of 11,000 feet must be maintained and that 12,000 feet of runway is necessary to make the service viable. He stated a 1,000 foot extension to Runway 4-22 has been proposed along with a temporary extension of Runway 11R/29L. He stated that MAC staff is recommending an environmental assessment of the proposal. Discussion followed regarding concerns about the take-off threshold, taxiways, and number and timing of flights. City Manager Prosser reviewed Study Session Letter No. 29 regarding the status of the following airport issues: x Proposed North-South Runway. Study Session Minutes-5-July 7, 1997 Alternative methods of gathering information about residential impacts of low frequency noise such as the use of a laboratory experiment on a house to simulate anticipated impacts was discussed as to the usefulness of the data in accomplishing the City’s objectives. A panel discussion with the representatives of the Metropolitan Council, Metropolitan Airports Commission and the City of Richfield has been scheduled for July 15. x PAC Meeting. x NOISE Annual Meeting and Aviation Noise Symposium. x New Ford Town and Rich Acres Acquisition. Item #4DISCUSSION OF TRANSIENT MERCHANT SALES THAT OCCUR IN RICHFIELD AND LICENSING REQUIREMENTS. S. S. LETTER NO. 30 City Manager Prosser reviewed Study Session Letter No. 30 regarding transient merchant sales and licensing requirements. Pat Harris, Richfield Floral & Gardens, Inc., 811 East 66th Street, stated that it was unfair that flower vendors are allowed to sell their products from transient locations in the City because they do not pay rent, taxes, or other overhead. Discussion followed regarding State Statutes that apply to transient sales, the existing City ordinance, and the authority of municipalities to regulate transient merchants. It was the consensus of the City Council that staff investigate alternatives to further regulate transient sales and bring the information back to the Council at a future Study Session. ADJOURNMENT The meeting was adjourned by unanimous consent at 9:35 p.m. Date Approved: Martin J. KirschMayor Thomas P. FerberJames D. Prosser City ClerkCity Manager