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08-23-99 Regular CITY COUNCIL MEETING MINUTES Richfield, Minnesota Regular Meeting August 23, 1999 CALL TO ORDER The meeting was called to order by Mayor Kirsch at 7:00 p.m. PRESENTATION OF COLORS AND PLEDGE OF ALLEGIANCE MayorKirsch led the audience in the Pledge of Allegiance. ROLL CALL Members Present:Martin Kirsch, Mayor; Sue Sandahl; Susan Rosenberg; Russ Susag; and Kristal Stokes. Staff:Steven Devich, Acting City Manager; Thomas Ferber, City Clerk; Bruce Palmborg, Community Development Director; Dan Scott, Public Safety Director; Mike Eastling, Public Works Director; Jim Topitzhofer, Recreation Services Director; William Fillmore, Liquor Operations Director; and Corrine Thomson, City Attorney. APPROVAL OF MINUTES M/Stokes, S/Sandahl to approve the minutes of the regular City Council Meeting of August 9, 1999, the Special City Council Meeting of August 12, 1999, the Special City Council Meeting of August 13, 1999 and the Special City Council Meeting of August 14, 1999. Motion carried 5-0. Council Meeting Minutes-2-August 23, 1999 Item #1OPPORTUNITY FOR CITIZENS TO ADDRESS THE COUNCIL ON ITEMS NOT ON THE AGENDA None. COUNCIL APPROVAL OF AGENDA Item #2 M/Susag, S/Stokes to approve the agenda. Motion carried 5-0. Item #3CONSENT CALENDAR A.APPROVED RESOLUTION APPROVING 2000-2003 COMMUNITY HEALTH SERVICES PLAN FOR RICHFIELD C.L. 181 RESOLUTION NO. 8755 RESOLUTION APPROVING THE 2000 – 2003 RICHFIELD COMMUNITY HEALTH SERVICES PLAN AND SUBMISSION OF SAID PLAN AND APPLICATION FOR THE 2000 – 2003 COMMUNITY HEALTH SERVICES ACT SUBSIDY. This resolution appears as Resolution No. 8755 in Resolution Book No. 70. B.APPROVED RENEWAL OF COMMERCIAL KENNEL LICENSE FOR GROOMING OF ANIMALS FOR PETCO ANIMAL SUPPLIES, INC. 710 WEST 66TH STREET C.L. 182 C.APPROVED RENEWAL OF COMMERCIAL KENNEL LICENSE FOR GROOMING OF ANIMALS FOR ELAINE'S GROOMING, 7429 HUMBOLDT AVENUE C.L. 183 D.APPROVED RENEWAL OF COMMERCIAL KENNEL LICENSE FOR ANIMAL CARE CLINIC, 6521 CEDAR AVENUE C.L. 184 E.APPROVED RENEWAL OF VETERINARY LICENSE FOR WOODLAKE VETERINARY HOSPITAL, 6436 LYNDALE AVENUE C.L. 185 F.APPROVED RENEWAL OF RESIDENTIAL KENNEL LICENSES FOR THE FOLLOWING: x 7433 EAST PLEASANT AVENUE; THREE DOGS AND TWO CATS C.L. 186 x 6840 RUSSELL AVENUE; THREE DOGS C.L. 187 x 6301 LOGAN AVENUE; THREE DOGS C.L. 188 x 7144 OLIVER AVENUE; THREE DOGS C.L. 189 Council Meeting Minutes-3-August 23, 1999 x 6844 COLUMBUS AVENUE; THREE DOGS C.L. 190 x 7301 WENTWORTH AVENUE; THREE DOGS C.L. 191 x 6800 CEDAR AVENUE; THREE DOGS C.L. 192 M/Susag, S/Sandahl to approve the consent calendar. Motion carried 5-0. Item #4PUBLIC HEARING AND CONSIDERATION OF RESOLUTION DETERMINING NECESSITY FOR ISSUANCE OF GENERAL OBLIGATION BONDS TO CONSTRUCT NEW COMMUNITY AND RECREATIONAL CENTER AND CALLING SPECIAL ELECTION FOR NOVEMBER 2, 1999 C.L. 193 Acting City Manager Devich reviewed C.L. No. 193 regarding consideration of a resolution determining the necessity for issuance of General Obligation Bonds to construct a new Community and Recreation Center and calling a special election for November 2, 1999. Rick Jabs, 6805 Knox Avenue, Chair of the Richfield Community and Recreational Center Task Force, presented the recommendation of the Task Force that the City Council schedule a special election for November 2, 1999 for a vote on the issuance of $9.5 million General Obligation Bonds for the construction of a new Community and Recreational Center. He presented and reviewed the following mission statement and goals of the Task Force: Mission Statement: x Serves as focal point for our Richfield Community activity "A gem of the City" x Welcomes all community members regardless of age, race or creed x Addresses social, health and recreational needs for the greatest number of citizens Goals: x Economically feasible to build x Financially responsible to operate x Meets multi-purpose needs now and in the future x Is safe, secure and inviting x Improves the quality of life for all Richfield residents through its programs, facilities and services He presented the following elements of the Task Force recommendation: Community Center: x Congregate dining x Senior programs site x Multi-purpose rooms Council Meeting Minutes-4-August 23, 1999 x Crafts x Small-group meetings x Social interaction x Clubs x Classes x Adult/social lounge areas x Teen Center x Child Activity Center x Drop-in daycare x Richfield Familink Resource Center x Recreation staff offices Health and Recreation: x Zero-depth recreational pool x Water play features x Two exercise lanes x Aerobics/exercise studio x Walking/running track x Cardiovascular/weight area x Locker room (general and family) Meeting/Banquet Facilities: x Seating for 500 x Weddings x Proms and banquets x Family gatherings x Revenue source x Multi-purpose meeting rooms Cost: $9.5 million in 25 year General Obligation bonds x $100,000 home/business tax impact - $52/year ($4.33/month) x $150,000 home/business tax impact - $78/year ($6.86/month) Location: Veterans Park x Portland Avenue and 64th Street (southeast corner) x Land use 4.18 acres of 108 acres (3.8%) Conclusion: Based on research, input and feedback from citizens, the Task Force is recommending that the City Council hold a referendum vote on November 2, 1999, for issuance of a 25 year General Obligation Bond to build the $9.5 million Community and Recreational Center. Gordon Anderson, 7501 Elliot Avenue, questioned whether the City Council is fulfilling their oath to uphold the City Charter because of his belief that the Council has not Council Meeting Minutes-5-August 23, 1999 followed the provisions of City Charter Section 8.05 regarding public hearings for this project. City Attorney Thompson stated that tonight's public hearing was a separate and additional public hearing stating that the public hearing and hearing notices pursuant to City Charter Section 8.05 would be occurring in the near future. Gordon Anderson, 7501 Elliot Avenue, stated concerns about the need for more public hearings and public input. Council Member Susag stated that the issue before the Council was whether to put the issue on the November 2 ballot for residents to vote on the proposal. Jan Berge, 7345 Aldrich Avenue, stated that efforts to let the residents know about this proposal were inadequate. She discussed information she received from Recreation Directors in other cities regarding water/pool facilities and the desirability of outdoor facilities. She advocated keeping the outdoor pool and Community Center as separate issues and stated support for maintaining the outdoor pool. She urged the Council not to decide until there has been an opportunity for more information and discussion. Rick Jabs reviewed the research of the Task Force, communication efforts to solicit input and efforts to inform residents. Sandra L. Mueller, 6521 Fifth Avenue, discussed some of the following opinions and ideas: x Support for existing Community Center x Use the existing indoor pools at the schools x Need to maintain outdoor pool for youth to use in the summer x Edinborough Park in Edina is available to Richfield residents x Consider incorporating a Community Center in the new senior housing x Banquet facility to compete with private industry shouldn't be considered x Schools have gym space x If current pool loses money, market it to south Minneapolis residents x Oppose loss of open space and trees in Veterans Memorial Park x Collaborate with other cities and School District to share facilities and costs x Do not conduct referendum Ms. Sausen, 6320 Portland Avenue, spoke of the need for more information and support for the existing outdoor pool with some additional updating and repairs. Ron Fossum, 7344 Oakland Avenue, spoke in support of waiting to allow more information and public input before putting it to a vote. He advocated putting the issue on the ballot in 2000 when more voters will participate and a more deliberate decision has been made regarding the issues. Rick Jabs reviewed the Task Force's proposed schedule of open forum informational meetings in September. Council Meeting Minutes-6-August 23, 1999 Jan Anderson, 6744 Pleasant Avenue, thanked the Task Force for their work. She discussed concerns that the Council may have literally followed City Charter Section 8.05, but not the spirit of the provision. She stated concern about the timing and ordering of a referendum before the public hearings. She suggested putting the issue on the 2000 ballot instead. She stated there was a need for more discussion and details regarding the proposal. She asked the Council to vote no and delay their decision. Connie McDonald, 6400 15th Avenue, member of the Task Force, spoke in support of the proposal indicating: x The outdoor pool is not handicap accessible x School pools are inadequate for needs x Banquet facility needed for service organizations, weddings, proms x Task Force work and research show need to accommodate needs of senior citizens and families Bob Nelson, 7540 Bryant Avenue, spoke in support of the outdoor pool and looking further at the pool and other options. He stated the Community Center proposal is adequate, but the membership cost per year is an issue. He stated the City should inform more people and get more options. He suggested waiting until next year. John Easterwood, 7121 Morgan Avenue, stated there have been many opportunities to be informed on this issue. He stated support for the Community Center idea and would like to preserve the outdoor pool also. Jennifer Boese, 6408 Fifth Avenue, discussed the following issues: x Outdoor pool attendance x Lifeguard staffing problems if a indoor water facility is built x No lap swimming which is now available at the current Olympic sized pool x Proposed season pass price is too high x Ventilation for indoor pool facility is very expensive x Desirability of summer outdoor pool activities x Urged Council to vote no on the referendum Rick Jabs reviewed season pass and daily use statistics for the pool. Camillo DeSantis, 6508 Newton Avenue, member of the Task Force, spoke in support of the November 2 bond referendum election because of the following: x Positive future and good facilities to serve youth, adults and seniors x Create and enhance a sense of community x Enhance social and recreational opportunities Marian Miller, 7316 Grand Avenue, stated that she went to meetings, but the Task Force did not listen to her about the outdoor pool. She stated if the pool was upgraded it would be made accessible. She noted Edina has no Community Center and seniors moving in will have no say. She asked the Council to vote no and reconsider the issue. Kate Graeve, 7433 Park Avenue, spoke in support of keeping the outdoor pool. Council Meeting Minutes-7-August 23, 1999 Sharla Boese, 6408 Fifth Avenue, stated she was not opposed to the Community Center, but if it means closing the pool then she would be against it. She urged the Council to vote no. Maureen Scaglia, 6410 Washburn Avenue, member of the Community Services Commission, stated numbers are declining at the pool, kids want a leisure water park and many kids don't like the existing pool. She stated the City needs to serve the largest number of citizens by building a multi-purpose community center as an investment in the future. She stated the League of Women Voters supports the referendum. Dennis Manson, 6901 Park Avenue, spoke in opposition stating communication has not been enough. He urged the Council to vote no now and wait until next year for the referendum. His concerns included: x Maintenance issues in the future x Keep taxes low x Same issue as the trees - lack of communication x Money for airport plus maintenance facility x Shrinking suburb x Respect the people and wait until next year Doug Kleist, 7020 17th Avenue, spoke in opposition to the referendum at this time. He stated that if the outdoor pool is to be closed then it must be made clear to people. He stated he wanted to see the plans and costs associated with removing the pool included in the proposal. He suggested that people are not informed enough yet to make a decision. M/Susag, S/Rosenberg to close the public hearing. Motion carried 5-0. Council Member Sandahl stated she heard concerns about the closing of the pool and asked if people would support an increase in taxes to keep it open. M/Rosenberg, S/Sandahl 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. 8756 RESOLUTION DETERMINING THE NECESSITY FOR THE ISSUANCE OF GENERAL OBLIGATION BONDS AND CALLING A SPECIAL ELECTION THEREON Motion carried 5-0. This resolution appears as Resolution No. 8756 in Resolution Book No. 70. Council Member Susag is pleased to hear the outpouring of support for the outdoor pool. Council Member Rosenberg asked if there is a way to keep the outdoor facility open. She encouraged everyone to attend the Task Force informational meetings coming up and participate in the democratic process. Council Meeting Minutes-8-August 23, 1999 Council Member Sandahl stated appreciation for all the efforts of the Task Force. She encouraged everyone to attend the meetings and vote on the issue. She stated support for the Community Center as a reasonable project. Council Member Stokes stated this may seem too fast for some residents, but she supports neighbors having a chance to be informed and to vote on the issue. Mayor Kirsch stated support for giving voters the opportunity to vote, giving their input and letting the entire population decide. Item #5PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING SALE OF GENERAL OBLIGATION TAX INCREMENT REVENUE BONDS ON BEHALF OF HRA TO PROVIDE FOUR YEAR FUNDING PLAN FOR RICHFIELD REDISCOVERED AND TRANSFORMATION HOMES PROGRAMS C.L. 194 Acting City Manager Devich reviewed C.L. No. 194 regarding authorization for the sale of General Obligation Tax Increment Revenue Bonds on behalf of the HRA to fund the Richfield Rediscovered and Transformation Homes Programs. Larry Wozniczka, 6744 Wentworth Avenue, asked questions regarding the costs for Richfield Rediscovered and transformation homes, the bond repayment sources and the status of previous bonds. Community Development Director Palmborg stated the average cost of Richfield Rediscovered property is $65,000 and average transformation loan was $15,000. Sid Inman, Ehlers & Associates Inc., identified the Richfield Rediscovered district tax increment, land sale proceeds and housing trust funds provided by the Gramercy and Urban Village tax increments as sources for repayment of the bonds indicating it was three times the required amount to service the bond debt. Mr. Inman indicated that the 1996 bonds had some balance remaining. Community Development Director Palmborg reviewed the status of previous Richfield Rediscovered bonds. Larry Wozniczka, 6744 Wentworth Avenue, spoke in opposition to the issuance of this bond issue. He indicated the program is getting too expensive with no increase in tax base, therefore the City Council should consider that the program has reached a successful conclusion and be terminated now. Community Development Director Palmborg responded to questions from the City Council stating that about 100 Richfield Rediscovered projects had been completed and about 190 properties had been originally identified. Council Meeting Minutes-9-August 23, 1999 Council Member Rosenberg stated that the Richfield Rediscovered program was one of the most important and effective programs of the City. M/Susag, S/Rosenberg to close the public hearing. Motion carried 5-0. M/Susag, S/Rosenberg 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. 8757 RESOLUTION AUTHORIZING THE SALE OF THE TAXABLE GENERAL OBLIGATION VARIABLE RATE DEMAND TAX INCREMENT BONDS, SERIES 1999 IN AN AMOUNT NOT TO EXCEED $2,800,000 PLUS ASSOCIATED COSTS OF ISSUANCE Motion carried 5-0. This resolution appears as Resolution No. 8757 in Resolution Book No. 70. Item #6CONSIDERATION OF FIRST READING OF ORDINANCE LICENSING AND REGULATING PRACTICE OF THERAPEUTIC MASSAGE IN RICHFIELD C.L. 195 Acting City Manager Devich reviewed C.L. No. 195 regarding a proposed ordinance that would license and regulate the practice of therapeutic massage in the City. M/Susag, S/Sandahl that this constitute the First Reading of this ordinance; and that the Public Hearing and Second Reading of the ordinance be scheduled for the September 13, 1999 City Council meeting. Motion carried 5-0. Item #7CONSIDERATION OF FIRST READING OF ORDINANCE AMENDMENT REZONING LAND BETWEEN ALDRICH AVENUE AND ONE-HALF BLOCK EAST OF GARFIELD AVENUE AND 76TH TO 77TH STREETS FROM SINGLE FAMILY RESIDENTIAL, NEIGHBORHOOD COMMERCIAL AND GENERAL COMMERCIAL TO PLANNED GENERAL COMMERCIAL C.L. 196 Acting City Manager Devich reviewed C.L. No. 196 regarding a proposed ordinance amendment to rezone land between Aldrich Avenue and one-half block east of Garfield Avenue and 76th to 77th streets from single family residential, neighborhood commercial and general commercial to planned general commercial. Council Meeting Minutes-10-August 23, 1999 M/Stokes, S/Susag that this constitute the First Reading of this ordinance; and that the Public Hearing and Second Reading of the ordinance be scheduled for the September 13, 1999 City Council meeting. Motion carried 5-0. Item #8CONSIDERATION OF AWARD OF CONTRACT FOR RECREATIONAL SITE IMPROVEMENTS AT ACADEMY OF HOLY ANGELS TO INGRAM EXCAVATING IN AMOUNT OF $197,250 C.L. 197 Acting City Manager Devich reviewed C.L. No. 197 regarding consideration of the award of contract for the recreational site improvements at the Academy of Holy Angels site to Ingram Excavating. Recreation Services Director Topitzhofer responded to questions regarding the difference in the bids from the previous bids on this project, which were rejected. He indicated that the changes in the timeline and softball field resulted in a lower bid. M/Susag, S/Stokes to accept the bid minutes/tabulation and award contracts to Ingram Excavating for the recreational site improvements at the Academy of Holy Angels, accepting a base bid of $197,250.00 and to authorize staff to proceed with any alternates allowed by available funding with priority placed on Alternate #4, regarding bleacher installation ($11,800.00), and Alternate #5, regarding turf/sod installation instead of seed ($28,675.00). Motion carried 5-0. CONSIDERATION OF NEW CITY MANAGER EMPLOYMENT Item #9 AGREEMENT C.L. 197A Acting City Manager Devich reviewed C.L. No. 197A regarding consideration of the terms of a proposed employment agreement with Samantha Orduno to be Richfield City Manager. He presented and discussed several contract language revisions and clarifications. Discussion followed regarding several benefit and deferred compensation issues. Acting City Manager Devich read a fax letter received from Paul Reaume, The PAR Group, which presented several benefit and compensation issues that Samantha Orduno had discussed with him including her current level of benefits and her desire not to go backward. Mr. Reume's letter indicated Ms. Orduno's request that the car allowance be Council Meeting Minutes-11-August 23, 1999 $400 per month rather than $350 and $2500 yearly in deferred compensation be provided as is the case at her current job. M/Susag, S/Kirsch to approve the City Manager contract terms including the word changes and clarifications presented by the Acting City Manager with the compensation package as presented. Council Member Sandahl made the following motion to amend the motion on the floor. M/Sandahlto amend the motion to include an increase in the City Manager's car allowance from $350 to $400 per month and provide $2500 annual deferred compensation as part of the contract. Motion failed for lack of a second. Council Member Sandahl expressed concerns that Ms. Orduno will not accept the City Manager position because the salary and benefits package does not match her current benefits. Council Member Susag stated concerns about the requests and setting a precedent on these issues. He stated the City Council could take a look at the deferred compensation issue at the six-month evaluation as was discussed during the interview process. He stated he did not object to increasing the car allowance from $350 to $400, since it had not been adjusted recently. Council Member Susag and Mayor Kirsch amended their motion on the floor to include $400 per month car allowance in the City Manager's contract. Discussion followed regarding the importance of the deferred compensation issue to Ms. Orduno. M/Sandahl, S/Stokes amend the motion on the floor to include that the City Council will consider the $2500 in deferred compensation for the City Manager at the time of the six-month evaluation. City Council discussion followed regarding their recollection of previous discussions regarding deferred compensation. The meeting was recessed at 10:10 p.m. by unanimous consent. Mayor Kirsch reconvened the meeting at 10:20 p.m. Acting City Manager Devich discussed his phone conversation with Mr. Reaume and Ms. Orduno regarding the issue of the $2500 deferred compensation. Council Member Susag stated the amount of deferred compensation should not be included in the motion. Council Meeting Minutes-12-August 23, 1999 Council Members Sandahl and Stokes agreed to drop the $2500 amount from their motion to amend. The motion to amend was restated and the question called. M/Sandahl, S/Stokes to amend the motion on the floor to include that the City Council will consider deferred compensation for the City Manager at the time of the six- month evaluation. Motion carried 5-0. The original motion as amended was restated and the question called. M/Susag, S/Kirsch to approve the City Manager contract terms including the word changes and clarifications presented by the Acting City Manager with the compensation package as presented with the car allowance to be $400 per month and consideration of deferred compensation at the time of the six-month evaluation. Motion carried 5-0. M/Sandahl, S/Susag to continue the August 23, 1999 City Council Meeting to 6:00 p.m. August 25, 1999 upon the conclusion of the regular agenda, for the purpose of consideration of a City Manager appointment. Motion carried 5-0. Item 10#AIRPORT STATUS REPORT Acting City Manager Devich reviewed and discussed the following airport issues: x Congressman Martin Sabo's presentation to the Richfield Chamber of Commerce x Meeting with STARR Group and FAA x Attorney Steve Pflaum has resigned as airport counsel. Kennedy & Graven has identified another attorney who has experience with FAA matters and will request a proposal from him x The City plans to meet with Congressman Sabo and MAC Chair Nichols again in the near future Bill Duffee, 6515 18th Avenue, Co-Chair of the STARR Group, discussed their meeting with Congressman Sabo to ask that he put pressure on the MAC and FAA to allow the use of funds for the airport mitigation plan. He indicated they would be meeting the MAC Chair Nichols and also Metropolitan Council Representative Riveness in the near future. Council Meeting Minutes-13-August 23, 1999 Acting City Manager Devich urged residents to contact their congressional representatives to ask for assistance on this issue. Item #11LEGISLATIVE REPORT None. Item #12COUNCIL DISCUSSION ITEMS Community Development Director Palmborg stated that the Affordable Housing Replacement Committee needed City Council representatives. Council Members Rosenberg and Sandahl volunteered to serve as the City Council representatives. Item #13CLAIMS AND PAYROLL M/Susag, S/Rosenberg that the following claims and payrolls be approved: RICHFIELD BANK & TRUST CO. INT Checks: 88933 - 88959$ 103,007.42 H/C 89426 - 89766$1,705,854.81 PAYROLL: 14901 - 15207$ 494.074.88 TOTAL$2,302,937.11 Motion carried 5-0. ADJOURNMENT The meeting was adjourned by unanimous consent at 10:43 p.m. and continued to 6:00 p.m. on Wednesday, August 25, 1999. Date Approved: Martin J. KirschMayor Thomas P. FerberSteven L. Devich City ClerkActing City Manager