03-26-01 Regular
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Meeting
March 26, 2001
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; Susan Rosenberg; John Enger; Gertrude
Ulrich; and Sue Sandahl.
Staff Present:Samantha Orduno, City Manager; Mike Eastling, Public Works
Director; Dan Scott, Public Safety Director; Bruce Palmborg,
Community Development Director; Jim Topitzhofer, Recreation
Services Director; Chris Regis, Finance Manager; Cheryl Krumholz,
Recording Secretary; and John Dean, City Attorney.
APPROVAL OF MINUTES
M/Rosenberg, S/Ulrich to approve the minutes of the (1) Special City Council Study
Session of March 12, 2001; and (2) Regular City Council Meeting of March 12, 2001.
Motion carried 5-0.
Council Meeting Minutes-2-March 26, 2001
Item #1PRESENTATION OF LETTER OF COMMENDATION FROM RICHFIELD
PUBLIC SAFETY DEPARTMENT TO FIREFIGHTER DAVE BUZICKY
Public Safety Director Scott presented Firefighter Dave Buzicky with a Letter of
Commendation from the Richfield Public Safety Department.
Item #2COUNCIL DISCUSSION ITEMS
x
COUNCIL MEMBER SANDAHL’S REPORT ON NATIONAL LEAGUE OF
CITIES CONGRESSIONAL CITY CONFERENCE IN WASHINGTON, D.C.
Council Member Sandahl reported on the following meetings held during the
National League of Cities Congressional City Conference in Washington, D.C. on
March 9 – 13, 2001:
i
On March 13 and 14 a contingent of representatives of the seven member
cities of the I-494 Corridor Commission met with both of our Senators and five
of our Congressmen and/or their representatives in Washington, D.C. The
group met with the following:
x
CongressmanOberstar’s Chief of Staff Bill Richards and the Chief of Staff
for the House Transportation Committee Ken House*
x
Congressman Sabo and Legislative Assistant Marjorie Dusky*
x
Senator Dayton’s staff*
x
Congressman Kennedy and Legislative Director Glynda Becker
x
Congressman Luther’s Legislative Director
x
Senator Wellstone’s Legislative Assistant Sarah Niemeyer
x
Congressman Ramstad and Legislative Assistant Adam Peterman
*
Richfield met with these Legislators.
The following member cities had representatives in attendance:
Bloomington – Mayor, City Manager and 3 Council Members
Eden Prairie – Mayor and Council Member
Edina – Mayor, City Manager and Council Member I-494 Chair
Plymouth – Mayor and Council Member
Richfield – City Manager and Mayor Pro-Tempore
i
On March 14, City Manager Orduno, she and representatives from Lockridge,
Grindal Nauen, Richfield’s federal lobbyist firm, met with:
x
FAA representatives
x
Senator Wellstone’s Legislative Assistant
x
Senator Dayton’s Legislative Assistant
x
Congressman Sabo and his Legislative Director
Council Meeting Minutes-3-March 26, 2001
Council Member Sandahl said low frequency noise is now a policy issue, not
just a study area.
City Manager Orduno reported that an additional $2 million is available for noise
mitigation in addition to the $10 million secured by Congressman Sabo earmarked for
Richfield. This is because MAC is required to commit 20% in matching funds in order to
qualify for the $10 million. MAC has already made a preliminary application to the FAA for
the $10 million for noise mitigation under the Airport Improvement Program. She said the
FAA does not permit the $10 million to be used for low frequency noise, but can be used
for Part 150 noise mitigation and over flight noise.
City Manager Orduno said the City was urged by the FAA to not rely on the low
frequency noise study currently pending before the FAA for its proposed use of noise
mitigation funds.
City Manager Orduno said MAC is willing to meet with the FAA and Richfield staff in
Washington, D.C. next month to get conclusive policies regarding the use of the $10
million for noise mitigation activities in east Richfield.
Ms. Orduno reported on a meeting on March 21 with City staff and MAC officials to
discuss the status of airport noise mitigation funds and other outstanding issues between
MAC and the City. The discussions were very productive and both parties are determined
to work collaboratively to secure the $10 million for noise mitigation. Another meeting is
scheduled for May 30, 2001.
Council Member Ulrich made the following statements regarding her position on
parking issues at Gramercy:
1.Support for parking at Wood Lake as worked out by the Community Services
until better accommodations can be provided
2.Encourages City staff to work with management at Gramercy to provide more
spaces north of Lake Shore Drive
3.No support for new construction in the southwest quadrant of 66th Street and
Lyndale Avenue without adequate provision for parking
4.No support for parking on south side of Lake Shore Drive
Council Member Rosenberg said she felt Council Member Sandahl’s article in the
March 21 Richfield Sun Current regarding Best Buy was outstanding.
Mayor Kirsch thanked Council Member Sandahl for representing Richfield as Mayor
Pro Tempore in Washington, D.C.
Council Members Sandahl and Ulrich asked to be excused from the May 14, 2001
City Council meeting due to prior commitments.
Council Meeting Minutes-4-March 26, 2001
Item #3OPPORTUNITY FOR CITIZENS TO ADDRESS THE COUNCIL ON ITEMS
NOT ON THE AGENDA
Dennis Manson, 13012 Welcome Lane, Burnsville, asked what the purchasing
process was for City vehicles and equipment. He asked about the status of the Fire Chief
recruitment.
City Manager Orduno explained the City’s vehicle replacement program. She said
a new recruitment process for Fire Chief would begin with a new hire anticipated in July of
2001.
Patricia Pidcock, Edina Realty, speaking on behalf of Jan Nelson of Nelson’s Hair
Complete, 6606 Lyndale Avenue, reviewed the contents of a letter provided to the Council
concerning problems with the redevelopment of the southwest corner of 66th Street and
Lyndale Avenue. She said the City should give Nelson’s a definitive timeline and
relocation compensation for moving her business.
Mayor Kirsch said this issue is before the HRA and they will resolve the problems at
a future meeting.
City Manager Orduno explained that relocation benefits are outlined by law and
certain activities trigger the release of relocation funds.
Council Member Ulrich clarified that her earlier statement regarding her not
supporting new construction in the southwest quadrant of 66th Street and Lyndale Avenue
does not mean she would hold up this project.
Ms. Pidcock asked if the same relocation rules applied to businesses as to private
homeowners.
City Manager Orduno said the rules are similar. She said that City Bella was
moving forward until financing issues arose. There is not much the City can do unless the
City is willing to appropriate funds to purchase the property, which is not possible because
funds are not available.
Council Member Sandahl said that Nelson’s must wait for the development to move
forward in order to receive relocation compensation. If Nelson’s moves any other time, the
relocation costs will be lost.
City Manager Orduno said that communication from the City to businesses and
homeowners regarding redevelopment in this area includes a statement of caution about
not making commitments on a relocation resource until notified in writing by City staff or
the developer.
Council Meeting Minutes-5-March 26, 2001
Community Development Director Palmborg said the relocation process is tied
directly to the purchase of the property and must be successfully concluded. He said at
this time the development is on schedule. The developer must report to the HRA by May
1, 2001 on the status of the acquisition of the property on the use of condemnation for
purchase by the developer. He said as long as the developer is in compliance with the
development agreement, the HRA is committed to continuing with this developer.
Ernie Lindstrom, 7406 Fremont Avenue, appeared representing John Sieff as owner
of Lyndale Hardware. Mr. Lindstrom said that the DTED request for funding a portion of
the redevelopment costs of City Bella should include a signed contract between the
developer and the property owners to buy the land. Mr. Lindstrom spoke about problems
with closing the purchase of Lyndale Hardware by the Gramercy Corporation. He stated
his concern that the developer has not followed through with the purchase of the property.
Mr. Lindstrom suggested that the City acquire the Lyndale Hardware property to ensure
the project or any new project to proceed. He said that by the next time the HRA meets,
Mr. Sieff will likely be in negotiations with another potential buyer. He further stated that
the closing date is imperative to Mr. Sieff and his cash flow situation. Mr. Lindstrom said
he feels City Bella is dead.
Council Member Rosenberg requested a concurrent City Council and HRA meeting
be scheduled to discuss the City Bella development with the developer.
Item #4 COUNCIL APPROVAL OF AGENDA
M/Sandahl, S/Rosenberg to approve the agenda.
Motion carried 5-0.
Item #5 CONSENT CALENDAR
Council Member Enger asked to have all items removed from the consent calendar
and moved to the regular agenda.
Mayor Kirsch stated that Items 5A, 5B, 5C and 5D would be removed from the
Consent Calendar and placed on the regular agenda as Items 5A, 5B, 5C and 5D
M/Enger, S/Ulrich to remove all items from the consent calendar and place them on
the regular agenda.
Motion carried 5-0.
Council Meeting Minutes-6-March 26, 2001
Item #5ACONSIDERATION OF APPROVAL OF RESOLUTION AUTHORIZING
SUBMITTAL OF REQUEST TO DEPARTMENT OF TRADE AND
ECONOMIC DEVELOPMENT FOR FUNDING PORTION OF
REDEVELOPMENT COSTS OF CITY BELLA S.R. NO. 80
City Manager Orduno reviewed Staff Report No. 80 regarding a resolution
authorizing submittal of a request to the Department of Trade and Economic Development
for funding a portion of the redevelopment costs of City Bella.
City Attorney Dean said that the Department of Trade and Economic Development
(DTED) application is a source of HRA funds for the development of the southwest
quadrant of 66th Street and Lyndale Avenue, which includes City Bella.
Council Member Ulrich asked if the City Bella reference could be removed from the
application.
Community Development Director Palmborg said the application needs to be a
specific concept.
Council Member Enger said he wanted City Bella removed from the application
because he was concerned about the project being tied to the funds.
Community Development Director Palmborg said the application criteria would be
reviewed with DTED prior to submission.
Council Member Sandahl said she felt the application is not tied to the City Bella
name and the name could be changed in the future.
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. 9022
RESOLUTION TO SUBMIT A REQUEST TO THE DEPARTMENT OF TRADE
AND ECONOMIC DEVELOPMENT FOR FUNDING A PORTION OF THE
REDEVELOPMENT COSTS OF CITY BELLA
Motion carried 5-0. This resolution appears as Resolution No. 9022 in Resolution
Book No. 72.
City Manager Orduno requested that the City Council Members call her in advance
if an item should be removed from the Consent Calendar so the appropriate staff can be
present for discussion and the Council is prepared to make the best decision. She said
that she determines the Consent Calendar items based upon the type of issue, which is
mostly administrative and non-controversial in nature.
Council Meeting Minutes-7-March 26, 2001
Item #5BCONSIDERATION OF APPROVAL OF RESOLUTION AUTHORIZING
APPLICATION FOR DNR CONSERVATION PARTNERSHIP GRANT FOR
PRAIRIE RESTORATION PROJECT AT WOOD LAKE NATURE CENTER
S.R. NO. 81
Recreation Services Director Topitzhofer reviewed Staff Report No. 81 regarding a
resolution authorizing an application for DNR Conservation Partnership Grant for the
prairie restoration project at Wood Lake Nature Center.
Council Member Enger asked where the spoiled dredging was stored.
Recreation Services Director Topitzhofer said it was stored on the south end of the
park.
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. 9023
RESOLUTION AUTHORIZING THE APPLICATION FOR A MINNESOTA DEPARTMENT
OF NATURAL RESOURCES LANDSCAPE PARTNERSHIP GRANT TO ASSIST WITH
THE FUNDING OF THE WOOD LAKE PRAIRIE RESTORATION PROJECT.
Motion carried 5-0. This resolution appears as Resolution No. 9023 in Resolution
Book No. 72.
Item #5CCONSIDERATION OF APPROVAL OF APPOINTMENTS OF CITY
MANAGER AND ASSISTANT TO CITY MANAGER AS RICHFIELD
REPRESENTATIVES TO WOLD-CHAMBERLAIN FIELD JOINT AIRPORT
ZONING BOARD S.R. NO. 82
City Manager Orduno reviewed Staff Report No. 82 regarding the approval of
appointments of the City Manager and Assistant to the City Manager as Richfield
representatives to Wold-Chamberlain Field Joint Airport Zoning Board.
Council Member Enger asked if the same zoning ordinances and regulations apply
to ends of all runways. He also said he wanted to be part of this board.
City Manager Orduno said the same zoning issues apply.
M/Sandahl, S/Ulrich to appoint Council Member Enger and City Manager Orduno as
Richfield representatives to the Wold-Chamberlain Field Joint Airport Zoning Board, and
appoint Assistant to the City Manager, Pam Dmytrenko, as the alternate.
Council Meeting Minutes-8-March 26, 2001
Motion carried 5-0.
Item #5DCONSIDERATION OF APPROVAL OF BID MINUTES/TABULATION AND
AUTHORIZATION TO PURCHASE FIRE PUMPER FROM GENERAL
SAFETY EQUIPMENT, LLC IN AMOUNT OF $229,685 S.R. NO. 83
Public Works Director Eastling reviewed Staff Report No. 83 regarding approval of
bid minutes/tabulation and authorization to purchase a fire pumper from General Safety
EquipmentLLC in the amount of $229,685.
Council Member Enger asked for an explanation for the Trade B amount stated in
the Base Bid.
Acting Assistant Fire Chief Brad Sveum said it was for the chassis component.
M/Rosenberg, S/Sandahl to approve the bid minutes/tabulation and authorize the
purchase of a fire pumper from General Safety Equipment, LLC in the sum of $229,685
and authorize execution of an agreement for trade-in of the existing fire pumper as part of
the purchase of new equipment.
Motion carried 5-0.
Item #6CONSIDERATION OF RESOLUTION AWARDING SALE OF $8,350,000
GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2001A;
FIXING FORM AND SPECIFICATIONS; DIRECTING EXECUTION AND
DELIVERY; AND PROVIDING FOR PAYMENT S.R. NO. 84
City Manager Orduno reviewed Staff Report No. 84 regarding a resolution awarding
the sale of $8,350,000 General Obligation Tax Increment Bonds, Series 2001A; fixing form
and specifications; directing execution and delivery; and providing for payment; and at the
same time also reviewed Staff Report No. 85 regarding a resolution awarding sale of
$1,180,000 General Obligation Storm Sewer Revenue Refunding Bonds, Series 2001B;
fixing form and specifications; directing execution and delivery; and providing for payment.
The two Staff Reports would require two separate City Council actions on each bond sale.
Sid Inman, Ehlers & Associates, explained the bond sale process. He said the
analysis performed by Moody’s Investors Service was very extensive. Moody’s issued an
“Aa3” bond rating and reported that Richfield maintained this rating because as a first-ring
suburb that is fully developed, the City is very aggressive in redevelopment.
Council Meeting Minutes-9-March 26, 2001
Mr. Inman reviewed the bond bids. He said the tax increment district for the
Interchange West area may not be as long as anticipated because the bid came in at a
better interest rate than expected. He said the storm sewer revenue refunding bonds
interest rates came in better than expected, therefore this allows the refunded amount to
be reduced from $1,180,000 to $1,165,000.
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. 9025
RESOLUTION AWARDING THE SALE OF $8,350,000
GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2001A;
FIXING THEIR FORM AND SPECIFICATIONS;
DIRECTING THEIR EXECUTION AND DELIVERY;
AND PROVIDING FOR THEIR PAYMENT
Motion carried 4-1. (Enger opposed.) This resolution appears as Resolution No.
9025 in Resolution Book No. 72.
Council Member Enger said he did not support this bond sale because he feels it is
not appropriate for the City to sell bonds to build the Penn Avenue bridge.
Council Member Rosenberg said the action taken tonight is a big step in moving the
Best Buy project forward.
Item #7CONSIDERATION OF RESOLUTION AWARDING SALE OF $1,180,000
GENERAL OBLIGATION STORM SEWER REVENUE REFUNDING
BONDS, SERIES 2001B; FIXING FORM AND SPECIFICATIONS;
DIRECTING EXECUTION AND DELIVERY; AND PROVIDING FOR
PAYMENT S.R. NO. 85
City Manager Orduno reviewed Staff Report No. 84 regarding a resolution awarding
the sale of $8,350,000 General Obligation Tax Increment Bonds, Series 2001A; fixing form
and specifications; directing execution and delivery; and providing for payment; and at the
same time also reviewed Staff Report No. 85 regarding a resolution awarding sale of
$1,180,000 General Obligation Storm Sewer Revenue Refunding Bonds, Series 2001B;
fixing form and specifications; directing execution and delivery; and providing for payment.
The two Staff Reports would require two separate City Council actions on each bond sale.
Council Member Enger asked what the net savings was in reissuing these bonds.
Sid Inman, Ehlers & Associates, said $40,786.42.
Council Meeting Minutes-10-March 26, 2001
M/Rosenberg, S/Enger 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. 9024
A RESOLUTION AWARDING THE SALE OF $1,165,000 GENERAL
OBLIGATION STORM SEWER REVENUE REFUNDING BONDS, SERIES 2001B;
FIXING THEIR FORM AND SPECIFICATIONS;
DIRECTING THEIR EXECUTION AND DELIVERY;
AND PROVIDING FOR THEIR PAYMENT
Council Member Sandahl said the approved resolution is for the reduced amount of
the new Series 2001B Refunding Bonds.
Motion carried 5-0. This resolution appears as Resolution No. 9024 in Resolution
Book No. 72.
Item #8AIRPORT STATUS REPORT
City Manager Orduno had nothing additional to report.
Item #9OPPORTUNITY FOR CITIZENS TO ADDRESS THE COUNCIL ON ITEMS
NOT ON THE AGENDA
Robert Hall, 7309 Oliver Avenue, asked if the Ryan Company contract for the east
side of Richfield is for three years as stated by City Manager Orduno at the recent STARR
Group meeting.
City Manager Orduno said the Ryan contact is for a total of three years with two
years yet remaining.
Mr. Hall asked if an open meeting law violation occurred when there was a quorum
of the City Council present at a STARR Group meeting.
City Attorney Dean said a quorum exists if the Council meets to receive and discuss
information as a group. If Council Members arrive individually at a meeting such as this
and the last person to arrive notices that their attendance makes a quorum, it may be
appropriate for that person to leave. However, it is a policy decision on how to proceed in
circumstances like this.
Mr. Hall commented on the City’s web site and the City Bella development project.
Council Meeting Minutes-11-March 26, 2001
Item #10CLAIMS AND PAYROLL
M/Rosenberg, S/Sandahl that the following claims and payrolls be approved:
RICHFIELD BANK & TRUST CO.
INT Checks:102002 - 102038$137,482.34
H/C105787 - 106120$645,904.80
PAYROLL23887 - 24046$446,435.73
TOTAL$1,229,822.87
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:50 p.m.
Date Approved:
Martin J. Kirsch
Mayor
Cheryl KrumholzSamantha Orduno
Recording SecretaryCity Manager