06-07-99 Worksession
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Study Session
June 7, 1999
CALL TO ORDER
The meeting was called to order by Mayor Kirsch at 7:00 p.m.
ROLL CALL
Members Present:Martin Kirsch, Mayor; Sue Sandahl; Susan Rosenberg; Russ Susag;
and Kristal Stokes.
Staff Present :Steven Devich, Acting City Manager; Thomas Ferber, City Clerk;
Bruce Palmborg, Community Development Director; Michael
Eastling, Public Works Director; Chris Regis, Finance Manager; and
Betsy Christensen, Health Administrator.
Item # IANNUAL MEETING WITH HUMAN RIGHTS COMMISSION
Human Rights Commission members present:
Tashika Sykes, ChairConnie McDonald
Tony BibusJulie Fishel
Brent PaviaJennifer Wozniczka
Mark GleasonNancy Rowley (School Board Liaison)
Odell BrownBarry Fritz (City Staff Liaison)
Linda Wilkins
Tashika Sykes, Chair of the Human Rights Commission, presented the
Commission’s Annual Report to the City Council including the following information:
Study Session Minutes-2-June 7, 1999
Mission:
To develop and implement programs that enhance the advancement of human
rights in our community and to promote an awareness and appreciation for our
multicultural diversity.
Focus:
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Encourage neighborly respect and appreciation of Richfield’s diversity.
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Recognize outstanding contributions to the advancement of human rights in
Richfield.
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Educate the citizens of Richfield about their rights under the law.
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Advise the City of Richfield on human rights issues.
Community Events:
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League of MN HRC Essay contest
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Gene & Mary Jacobsen Outstanding Citizen Award
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Richfield Remodeling Fair
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Richfield 4 of July parade
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Cinco de Mayo Celebration
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No Fault Grievance Mediation (none to date)
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League of MN Human Rights member
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Create Richfield HRC logo
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Update HRC Internet site
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Nomination of Paragon Cable Youth Achievement Award
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Quarterly study/review sessions of Hate Crimes Response Plan
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Friends of Wood Lake Dinner
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Community Circle Panel Discussion
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Conference on Hate Crimes
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Monthly Sun Current articles
Human Rights Commission 1999 Forward Plan.
To fully develop goals and objectives of four committees as they pertain to the mission
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and policy of the Richfield Human Rights Commission. The four committees are:
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Education
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Community Relations
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Employment
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Human Services/Housing
A fifth committee will be maintained. All commissioners will participate.
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Discrimination Complaints
To develop a transition process for future members of the committees
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To educate and inform the citizens of Richfield relative to human rights, cultural
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diversity and discrimination by:
Study Session Minutes-3-June 7, 1999
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Attending local and state human rights events
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Distributing Richfield's HRC brochure
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Distributing literature from MN Department of Human Rights
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Distributing literature from League of MN Human Rights
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Maintaining HRC presence via Sun Current articles
To complete the yearly events calendar for yearly distribution in December
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To complete HRC Welcome packet for distribution to new members
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Connie McDonald and Odell Brown reported on Commission participation in the
Circle Group Discussion Group Program particularly related to the issues of the City
Council's role regarding affordable housing opportunities and City Council support for a
Year 2000 ethnic diversity festival. They indicated a request will be made to the Richfield
Foundation for financial assistance for the festival and that the focus would be education
and celebration of diversity, not entertainment.
Council Member Susag stated support for the Commission application to the
Richfield Foundation and discussed how Richfield does have an abundance of affordable
housing while also trying to provide a broader spectrum of housing in the City. He
requested Community Development Director Palmborg to provide information to the
Council regarding a housing concept on York Avenue in Edina.
Item # IIDISCUSSION OF LEASE RELATED TO ACADEMY OF HOLY ANGELS
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POND AT 66 STREET AND PILLSBURY AVENUE. S.S. LETTER NO. 16
Acting City Manager Devich reviewed Study Session Letter No. 16 regarding issues
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related to a proposed lease for the Academy of Holy Angels (AHA) pond at 66 Street and
Pillsbury Avenue including the amount of City contribution to the construction costs and
maintenance issues.
Public Works Director Eastling reviewed the public storm water pond benefits and
the history of discussions with AHA regarding this issue. He recommended a $43,000
cash City contribution to the construction of the pond in addition to the design/study costs
incurred of approximately $12,000.
Richard Solum, representative of AHA, requested a $50,000 cash contribution from
the City for construction of the pond.
Jeff McDonnel, Architect for AHA, stated that the bids for the work are greater than
previous estimated costs and that the public benefit is more like $80,000.
City Attorney Thomson discussed communications from AHA Attorney Beth Timm
regarding maintenance issues.
Study Session Minutes-4-June 7, 1999
Mr. McDonnel stated that AHA desired to have a wet pond which gave benefit both
in greater capacity and aesthetics. He stated a pond liner would cost about $7,000. He
indicated that $50,000 would be an appropriate City contribution based on previous
discussions, public benefit, and the design engineering costs to AHA.
Council Member Susag discussed his concerns with how Mr. McDonnel presented
the issues and stated the City cannot contribute any more than what is determined by the
engineer as public benefit.
Mr. Solum discussed the difficulty in determining exact public benefits and costs.
He suggested $50,000 based on inflation and actual cost making it comparable to last
year's estimates.
City Attorney Thomson stated that determining exact benefit is elusive and that the
City benefit would be justifiable even at $50,000 citing the lease, land, design, and
construction cost issues related to the storm water pond.
Discussion followed regarding wet versus a dry pond. A dry pond is acceptable to
the City but a wet pond chosen by AHA provides greater capacity and aesthetic
desirability.
City Attorney Thomson discussed and distributed a draft lease for the pond
indicated the City dollar contribution was left blank at this time.
Discussion followed regarding the benefit of the pond for drainage from the Urban
Village Project.
Public Works Director Eastling suggested that City staff would prepare information
on options and justifications for the cash contribution for construction costs of the pond and
present a recommendation to the City Council with the proposed lease at the June 14 City
Council meeting.
Item #IIIPRESENTATION OF 1998 COMPREHENSIVE ANNUAL FINANCIAL
REPORT. STUDY SESSION LETTER NO. 17
Rob Tautges and Tom Hodnefield, HLB Tautges, Redpath, LTD., auditors for the
City presented a report to the City Council including the following:
Comprehensive Annual Financial Report
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City's financial statements
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Independent auditor reports on the fair presentation of the financial statements
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"Clean opinion" on the 1998 financial statements with reference to GASB 31 and
98-1
Federal Single Audit
Study Session Minutes-5-June 7, 1999
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Report on internal control and compliance regarding the financial statements
*No findings
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Report on internal control and compliance regarding federal programs
*No findings
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Report on compliance with State Statutes
*One finding regarding investment broker certification forms
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Schedule of expenditures of federal awards
Financial Analysis and Management Considerations Executive Summary:
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The City of Richfield was awarded the Certificate of Achievement for Excellence in
Financial Reporting for each of the last several years.
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The Governmental Accounting Standards Board (GASB) changed the standards for
accounting and financial reporting of certain investments (GASB No. 31).
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The City has established an investment policy to minimize risk to market and to
manage other aspects of investing.
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The State legislature lowered tax capacity rates for residential,
commercial/industrial and several other property classes in 1997, 1998 and 1999.
The effect of this change is to shift the property tax burden between classes of
property.
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The collection rate for property taxes is excellent.
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Delinquent tax increment receivables have not been recorded on the financial
statements. The delinquent balance at December 31, 1998 was estimated to be
immaterial, however, for consistency, we recommend the City consider recording
this in the future.
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We are recommending that cities review their "readiness" for a potential OSA audit
of TIF districts and, if appropriate, modify practices to assure compliance.
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We recommend the City review transfer practices to document authority for all
transfers.
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The City has consistently experienced excellent special assessment collection
rates.
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We recommend the City reconcile ending delinquent assessment balances with
County records.
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We recommend the City analyze and adjust the IBNR liability in 1999.
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State aids (including HACA and other state aids) and local property taxes have
represented over 80% of revenue sources of the General Fund. As such, we
recommend the City consider:
1.Periodic reviews of other revenue sources
2.Carefully monitor proposed law changes.
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We recommend the City consider adopting a policy which addresses targeted
General Fund balance.
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The City's liquor store operations exceeded state averages of operating income as
a percent of sales in 1995, 1996 and 1997.
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We recommend the City determine if Self-Insurance Fund charges to other funds
should be reduced in line with premium reductions.
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We recommend the City clarify whether the cash balance of the Agency Reserve
Fund carries any restrictions. If not, the balance should be reclassified to a City
Council designated fund.
Study Session Minutes-6-June 7, 1999
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We recommend the HRA consider recording land inventories at the lower of cost or
market within the appropriate HRA funds.
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We recommend the City adopt a written policy on liquor inventory matters.
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We recommend the City account for grants consistently, in accordance with GAAP.
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Interfund loans are now recorded in the financial statements.
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We recommend that the City continue to address Y2K issues.
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We recommend the City consider general recommendations regarding fraud
prevention and strategic pricing.
Larry Wozniczka, 6744 Wentworth Avenue, questioned the TIF bond amortization
schedule on pages 127-128 of the Comprehensive Annual Report, the "unaudited" label on
the schedule of personnel expenditures on pages 131-132, and the costs of sub-contractor
firms.
Mr. Tautges stated that he would have to refer to the TIF plan to answer the
amortization question.
Acting City Manager Devich stated staff would prepare a response.
Mr. Tautges stated the pages are labeled "unaudited" because it is supplemental
statistical data and outside the scope of the audit.
Item # IVDISCUSSION WITH CITY ATTORNEY REGARDING STATE LAW
REQUUIREMENTS UNDER MINNESOTA OPEN MEETING LAW, GIFT
LAW AND MINNESOTA GOVERNMENT DATA PRACTICES ACT.
S.S. LETTER NO. 18
City Attorney Thomson discussed and answered questions about state law
requirements regarding the attorney-client privilege, Minnesota Open Meeting Law, the
"Gift Law", and the Minnesota Government Data Practices Act.
After Council discussion it was the consensus of the City Council that a written
protocol explaining statutory requirements, procedures, ground rules, and expectations be
provided by staff to the Council prior to the conduct of a Closed Executive Session dealing
with the attorney client privilege or not public data.
Item #VDISCUSSION OF INCREASING NUMBER OF ALCOHOL LICENSES
AVAILABLE WITHIN RICHFIELD. S. S. LETTER NO. 19
Health Administrator Christensen reviewed Study Session Letter No. 19 regarding
discussion about increasing the total number of alcohol licenses available in the City of
Richfield.
Study Session Minutes-7-June 7, 1999
Discussion followed regarding the impact of different options in how many licenses
are available. State Statute allows for a City the size of Richfield to issue up to 18
intoxicating liquor licenses. City ordinance currently allows for seven intoxicating liquor
licenses. The Community Development Department staff has identified three major
projects in the City that in the near future will support a total of six establishments that
most likely will be requesting alcohol licenses.
It was the consensus of the City Council that staff provide further information
regarding zoning, density, and location regulations related to liquor licenses and options
regarding future availability of the number of liquor licenses in the City.
Item #VISTATUS OF AIRPORT RELATED ISSUES. S.S. LETTER NO. 20
Acting City Manager Devich reviewed Study Session No. 20 regarding the status of
the following airport issues:
Airport Legislative Initiatives
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State Legislature created an Airport Impact Zone and will receive $30 million of
general obligation bonds from the MAC to spend on land use conversion within the
zone pending FAA approval.
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The State Legislature also created a Governor's airport community stabilization
funding task force to which the City must appoint a representative.
Low Frequency Noise Policy Committee (LFNPC)
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The expert panel is working on the draft plan and the next meeting will be held on
June 23 at 3 p.m. at the main terminal.
MASAC
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The last meeting was May 25 and focused on corridor use.
CARE Team
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The status of the CARE Team and its relationship with the City will be decided at
the June 10 CARE Team meeting.
Item #VIIDISCUSSION OF MERGER OF CONSOLIDATED POLICE AND FIRE
ACCOUNTS INTO PERA. S.S. LETTER NO. 21
Acting City Manager Devich reviewed Study Session Letter No. 21 regarding the
new pension law which provides for the merger of consolidated police and fire account into
PERA and makes the City eligible to receive its residual fund assets. He stated that he
would notify PERA that the City has no objection to merging its local consolidated relief
accounts with the PERA Police and Fire Fund.
Study Session Minutes-8-June 7, 1999
ADJOURNMENT
The meeting was adjourned by unanimous consent at 10:00 p.m.
Date Approved:
Martin J. KirschMayor
Thomas P. FerberSteven L. Devich
City ClerkActing City Manager