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12-10-01 Regular CITY COUNCIL MEETING MINUTES Richfield, Minnesota Regular Meeting December 10, 2001 CALL TO ORDER The meeting was called to order by Mayor Kirsch at 7:00 p.m. ROLL CALL Members Present:Martin Kirsch, Mayor; Susan Rosenberg; Gertrude Ulrich; John Enger; and Sue Sandahl. Staff Present:Samantha Orduno, City Manager;Steven Devich, Administrative Services Director; Mike Eastling, Public Works Director; Bruce Palmborg, Community Development Director; Dan Scott, Public Safety Director; Bill Fillmore, Municipal Liquor Operations Director; Chris Regis, Finance Manager; Cheryl Krumholz, Recording Secretary; and Corrine Thomson, City Attorney. OPEN FORUM Mayor Kirsch announced that anyone in the audience registered to speak on taxes would need to wait until the public hearing regarding the budget, which is on tonight’s agenda. He said the Open Forum is an opportunity to speak about items not on the printed agenda. The Recording Secretary announced Robert Hall had registered to speak. Robert Hall, 7309 Oliver Avenue, asked if anyone had requested auxiliary aids as stated on the legal notice and the cost for the aid related to the Special City Council meeting in Atlanta, Georgia. He said placing the cancellation of the December 26 City Council meeting on the calendar instead of after the public hearing on the budget gave citizens the idea that their budget comments were not important and no further discussion would be necessary. He requested the meeting cancellation item be removed from the Council Meeting Minutes-2-December 10, 2001 consent calendar. He said the budget public hearing should have been in November to allow time for citizens to speak on the matter. City Manager Orduno said the budget needs to be certified to Hennepin County by the end of December. She said the City Council could schedule a special meeting to continue the budget discussion. Mayor Kirsch adjourned the Open Forum portion of the meeting by unanimous consent at 7:05 p.m. CALL TO ORDER The meeting was called to order by Mayor Kirsch at 7:05 p.m. ROLL CALL Members Present:Martin Kirsch, Mayor; Susan Rosenberg; Gertrude Ulrich; John Enger; and Sue Sandahl. Staff Present:Samantha Orduno, City Manager;Steven Devich, Administrative Services Director; Mike Eastling, Public Works Director; Bruce Palmborg, Community Development Director; Dan Scott, Public Safety Director; Bill Fillmore, Municipal Liquor Operations Director; Jim Topitzhofer, Recreation Services Director; Chris Regis, Finance Manager; Cheryl Krumholz, Recording Secretary; and Corrine Thomson, City Attorney. PRESENTATION OF COLORS AND PLEDGE OF ALLEGIANCE Mayor Kirsch led the audience in the Pledge of Allegiance. APPROVAL OF MINUTES Council Member Sandahl asked that the Special City Council meeting minutes of November 15, 2001 be amended to indicate she was present. Council Meeting Minutes-3-December 10, 2001 Council Member Ulrich said there had been 11 City Council meetings in less than one month. She said the City Council puts in many hours; more than the public realizes. Council Member Enger requested further discussion on the Crosstown Commons design. He said the ramp west to I-35W north had the corner sharpened and he wanted to review the maps more closely. He wanted to discuss the Portland Avenue/Crosstown entrance and possibly an amendment to the City’s policy position regarding the Crosstown design. Council Member Sandahl said the next Crosstown Committee meeting is January 9, 2002. The City Council consensus was to schedule discussion of the Crosstown design at the January 8 City Council Worksession. M/Ulrich, S/Rosenberg to approve the minutes of the (1) Special City Council Worksession of November 13, 2001; (2) Regular City Council Meeting of November 13, 2001; (3) Special City Council Closed Executive Session of November 13, 2001; (4) Special City Council Meeting of November 15, 2001 (as amended); (5) Special Concurrent City Council and HRA Closed Executive Session of November 19, 2001; (6) Special City Council Meeting of November 24, 2001; (7) Special City Council Worksession of November 26, 2001; (8) Regular City Council Meeting of November 26, 2001; (9) Special City Council Closed Executive Session of November 26, 2001; (10) Special City Council Meeting of November 29, 2001; and (11) Special City Council Meeting of December 4, 2001. Motion carried 5-0. Item #1PRESENTATION BY AMY KLOBUCHAR, HENNEPIN COUNTY ATTORNEY Amy Klobuchar, Hennepin County Attorney, summarized accomplishments of the past year and highlighted key initiatives related to the County Attorney’s office. The City Council thanked Ms. Klobuchar for her efforts, especially the emphasis on property crimes. Item #2SWEAR-IN RICHFIELD POLICE OFFICERS, JEFF COOK AND JOHN CARNES Public Safety Director Scott administered the swearing-in of Richfield Police Officers Jeff Cook and John Carnes. Council Meeting Minutes-4-December 10, 2001 Item #3RICHFIELD FOUNDATION AWARDING OF 2002 GRANTS Lynn Schoonmaker, Co-Chair of the Richfield Foundation, provided background information related to the distribution of $11,800 in grants to nine organizations whose proposals were deemed to provide the best match to grant criteria and current community needs. She said this year was a record for the number of recipients and the amount of grants. Jon Schoonmaker, Co-Chair of the Richfield Foundation, and Joan Helmberger, Treasurer, presented the grants to representatives of the following organizations: x Bridging, Inc. ($1,000) x Church of the Assumption ($2,500) x Cornerstone ($1,000) x Family and Children’s Service ($800) x Fraser Community Services ($1,000) x Support and Housing Assistance for Families Enduring Hardships (S.A.F.E.) ($1,000) x South Hennepin Immigrant Services Group (SHISG) Community of Nations Project ($2,000) x Storefront Group ($1,000) x Refugee ESL Tutoring Project ($1,500) The City Council thanked the Richfield Foundation for their efforts. Item #4PRESENTATION OF RICHFIELD 2020 PROJECT REPORT John Bjostad, Chair of the Richfield 2020 Steering Committee, recapped the process started 15 months ago that resulted in the Richfield 2020 Focus on the Future Report. Pam Dmytrenko, Assistant to the City Manager, distributed the report to the City Council. M/Sandahl, S/Rosenberg to accept the Richfield 2020 Focus on the Future Report and to use the report as a guide for planning next year and years to come. Motion carried 5-0. Council Meeting Minutes-5-December 10, 2001 COUNCIL DISCUSSION Council Member Sandahl provided a brief report on the National League of Cities (NLC) Congressional Cities Conference in Atlanta, Georgia, held last week. She reviewed and distributed to Department Directors, information on a variety of topics and activities from other cities. Council Member Ulrich commented on the NLC workshops on seniors and how communities work to have seniors remain in their homes. Council Member Rosenberg commented on NLC health and human services issues and resources from other cities. She said having all five City Council Members attend the conference provided valuable bonding as a Council. Council Member Enger thanked the City for providing the opportunity to attend the conference and said it was a worthwhile experience. He said he met other newly elected officials and learned of new ways to communicate with residents. Mayor Kirsch commented on the NLC affordable housing issues and initiatives from other cities. Council Member Enger reported on the N.O.I.S.E. session during the NLC Conference. Council Member Enger said in today’s issue of the St. Paul Pioneer Press, Senator Terwilliger from Edina suggested establishing a toll on Crosstown as a way to generate money to pay for the additional costs for keeping Crosstown open during construction. He said creating a toll road in the Crosstown Commons area would have dramatic negative impacts to the City of Richfield and our neighborhoods, as those wishing to bypass the toll would use our City streets. The increased traffic would pose a safety hazard to pedestrians and further burden our residential and arterial streets with increased traffic.It is not clear to what extent Senator Terwilliger’s suggestion will take hold at the Legislature; however, he believes it is critical for the City of Richfield to send a strong and clear message to the Senator and key legislative leaders that the concept of a toll for the Crosstown Commons is not a practical idea and one that has serious ramifications for those cities abutting the Crosstown. M/Enger, S/Rosenberg that the City Manager draft a letter immediately, to be signed by the Mayor and Council, stating our concerns with the toll proposal and send this letter to Senator Terwilliger and any other appropriate legislator. Motion carried 5-0. Council Meeting Minutes-6-December 10, 2001 Item #5COUNCIL APPROVAL OF AGENDA Council Member Enger asked to remove Items 5A, 5E and 5H and place them on the regular agenda. Mayor Kirsch removed Consent Calendar Item 5A, 5E and 5H, and placed them on the regular agenda as Items 13A, 13B and 13C. M/Rosenberg, S/Sandahl to approve the agenda as amended. Motion carried 5-0. Item #6CONSENT CALENDAR A.Removed from the consent calendar and placed on the regular agenda for consideration as Item 13A. B.Approved first reading of ordinance amending Chapter 13 of Richfield City Charter by adding new section authorizing administrative fines and penalties and scheduling public hearing and second reading for January 8, 2002 S.R. No. 296 C.Approved first reading of ordinance amending Section 7.13 of Richfield City Charter to establish June 30 deadline for submission of annual financial report and scheduling public hearing and second reading for January 8, 2002 S.R. No. 297 D.Approved canceling December 26, 2001 City Council meeting S.R. No. 298 E.Removed from the consent calendar and placed on the regular agenda for consideration as Item 13B. F.Approved first reading of ordinance amendment to City Code Section 405 regarding City’s housing maintenance code and adding components related to provisional licenses and conduct issues on licensed premises and scheduling public hearing and second reading for January 8, 2002 S.R. No. 300 G.Approved resolution approving settlement of claim of Donald Morrow and Patrick Morrow for loss of going concern damages for Morrow Towing, 6429-6445 Cedar Avenue; 66th Street/Trunk Highway 77 Interchange Project S.R. No. 301 RESOLUTION NO. 9117 RESOLUTION APPROVING SETTLEMENT OF CLAIM OF DONALD MORROW AND PATRICK MORROW FOR LOSS OF GOING CONCERN DAMAGES Council Meeting Minutes-7-December 10, 2001 This resolution appears as Resolution No. 9117 in Resolution Book No. 73. H.Removed from the consent calendar and placed on the regular agenda for consideration as Item 13C. I.Approved resolution authorizing execution of stipulation of final settlement for 6333 Cedar Avenue, Parcel 5; 66th Street/Trunk Highway 77 Interchange Project S.R. No. 303 RESOLUTION NO. 9118 RESOLUTION AUTHORIZING EXECUTION OF A STIPULATION OF FINAL SETTLEMENT FOR 6333 CEDAR AVENUE (PARCEL 5) (66TH STREET/TRUNK HIGHWAY 77 INTERCHANGE PROJECT) This resolution appears as Resolution No. 9118 in Resolution Book No. 73. M/Ulrich, S/Rosenberg to approve the Consent Calendar as amended. Motion carried 5-0. Item #7PUBLIC HEARING AND CONSIDERATION OF ISSUANCE OF NEW ON- SALE INTOXICATING AND SUNDAY LIQUOR LICENSES FOR THE FRENCHMAN’S, 1400 EAST 66TH STREET S.R. NO. 304 City Manager Orduno reviewed Staff Report No. 304 regarding consideration of the issuance of new on-sale intoxicating and Sunday liquor licenses for The Frenchman’s at 1400 East 66th Street. Council Member Sandahl asked if the Frenchman’s was upgrading to a full liquor license. Public Safety Director Scott said yes. M/Rosenberg, S/Ulrich to close the public hearing. Motion carried 5-0. M/Enger, S/Rosenberg to approve the issuance of new on-sale intoxicating and Sunday liquor licenses for The Frenchman’s, 1400 East 66th Street. Motion carried 5-0. Council Meeting Minutes-8-December 10, 2001 Item #8PUBLIC HEARINGS TO CONSIDER THE FOLLOWING 2002 LIQUOR LICENSE RENEWALS: A.ON-SALE INTOXICATING AND SUNDAY LIQUOR FOR CHI-CHI’S, INC., DBA CHI-CHI’S MEXICAN RESTAURANTE, 7717 NICOLLET AVENUE S.R. NO. 305 B.ON-SALE INTOXICATING AND SUNDAY LIQUOR, INCLUDING OUTSIDE SERVICE OF ALCOHOL, FOR WILTSHIRE RESTAURANTS, LLC, DBA HOULIHAN’S RESTAURANT & BAR, 6601 LYNDALE AVENUE S.R. NO. 306 C.ON-SALE INTOXICATING AND SUNDAY LIQUOR FOR DON PABLO’S OPERATING CORP., DBA DON PABLO’S, 980 WEST 78TH STREET S.R. NO. 307 D.ON-SALE INTOXICATING AND SUNDAY LIQUOR FOR CHAMPPS OPERATING CORP., DBA CHAMPPS RESTAURANT, 790 WEST 66TH STREET S.R NO. 308 E.ON-SALE INTOXICATING AND SUNDAY LIQUOR FOR PAISAN INC., DBA KHAN’S MONGOLIAN BARBEQUE, 500 EAST 78TH STREET S.R. NO. 309 F.ON-SALE INTOXICATING AND SUNDAY LIQUOR FOR THE GROUND ROUND, INC., DBA THE GROUND ROUND, 1500 EAST 78TH STREET S.R. NO. 310 G.CLUB ON-SALE AND SUNDAY LIQUOR FOR FRED BABCOCK V.F.W. POST NO. 5555, DBA FOUR NICKELS FOOD & DRINK; 6715 LAKE SHORE DRIVE S.R. NO. 311 H.CLUB ON-SALE AND SUNDAY LIQUOR FOR MINNEAPOLIS- RICHFIELD AMERICAN LEGION POST 435, 6501 PORTLAND AVENUE S.R. NO. 312 I.ON-SALE WINE AND 3.2 PERCENT MALT LIQUOR FOR THOMPSON’S FIRESIDE PIZZA, INC., DBA FIRESIDE PIZZA, 6736 PENN AVENUE S.R. NO. 313 J.ON-SALE WINE AND 3.2 PERCENT MALT LIQUOR FOR KIANG’S RED PEPPER, INC., DBA RED PEPPER CHINESE RESTAURANT, 2902 WEST 66TH STREET S.R. NO. 314 K.ON-SALE WINE AND 3.2 PERCENT MALT LIQUOR FOR SUBECK, INC., DBA KETSANA’S THAI RESTAURANT, 7545 LYNDALE AVENUE S.R. NO. 315 City Manager Orduno reviewed Staff Report No.’s 305 through 315 regarding consideration of 2002 liquor license renewals. Mayor Kirsch asked if all the liquor license renewals could be considered as one public hearing. City Attorney Thomson said yes, a single motion could be taken. She said any City Council Member could request a separate public hearing on any license. She said if someone speaks on a license, clear designation of which establishment is being discussed must be made. Council Meeting Minutes-9-December 10, 2001 Council Member Sandahl said the percentage of food versus beverage for Houlihan’s was not stated in the Staff Report. Public Safety Director Scott said Houlihan’s had not been serving a full year yet, but it met the required criteria. Council Member Enger asked why there was a discrepancy between establishments in the miscellaneous non-criminal (inspections/licensing) contacts. Public Safety Director Scott said it depended upon the monitoring of previous calls to ensure the establishment is in compliance. Council Member Sandahl stressed to the establishments that the City Council continues their concern about underage drinking. M/Rosenberg, S/Sandahl to close the public hearing. Motion carried 5-0. M/Rosenberg, S/Sandahl to approve the following renewals: on-sale intoxicating and Sunday liquor licenses for Chi-Chi’s , Inc., d/b/a Chi-Chi’s Mexican Restaurante, 7717 Nicollet Avenue; on-sale intoxicating and Sunday liquor licenses, including the outside service of alcohol, for Wiltshire Restaurants, LLC, d/b/a Houlihan’s Restaurant & Bar, 6601 Lyndale Avenue; on-sale intoxicating and Sunday liquor licenses for Don Pablo’s Operating Corp., d/b/a Don Pablos, 980 West 78th Street; on-sale intoxicating and Sunday liquor licenses for Champps Operating Corp., d/b/a Champps Restaurant, 790 West 66th Street; on-sale intoxicating and Sunday liquor licenses for Paisan Inc., d/b/a Khan’s Mongolian Barbeque, 500 East 78th Street; on-sale intoxicating and Sunday liquor licenses for The Ground Round, Inc., d/b/a The Ground Round, 1500 East 78th Street; club on-sale and Sunday liquor licenses for Fred Babcock V.F.W. Post No. 5555, d/b/a Four Nickels Food & Drink, 6715 Lake Shore Drive; club on-sale and Sunday liquor licenses for Minneapolis-Richfield American Legion Post 435, 6501 Portland Avenue; on- sale wine and 3.2 percent malt liquor licenses for Thompson’s Fireside Pizza, Inc., d/b/a Fireside Pizza, 6736 Penn Avenue; on-sale wine and 3.2 percent malt liquor licenses for Kiang’s Red Pepper, Inc., d/b/a Red Pepper Chinese Restaurant, 2902 West 66th Street; and on-sale wine and 3.2 percent malt liquor licenses for Subeck, Inc., d/b/a Ketsana’s Thai Restaurant, 7545 Lyndale Avenue. Motion carried 5-0. Item #9PUBLIC HEARINGS TO CONSIDER THE FOLLOWING 2002 PAWNBROKER AND SECONDHAND GOODS DEALER LICENSE RENEWALS: A.METRO PAWN & GUN, INC., 7529 LYNDALE AVENUE S.R. NO. 316 B.CAPITAL CASH LLC, DBA HY’S PAWN, 6414 NICOLLET AVENUE S.R. NO. 317 Council Meeting Minutes-10-December 10, 2001 City Manager Orduno reviewed Staff Report No.’s 316 and 317 regarding consideration of 2002 pawnbroker and secondhand goods dealer license renewals. M/Rosenberg, S/Sandahl to close the public hearing. Motion carried 4-0. (Enger absent.) M/Sandahl, S/Rosenberg to approve the renewal of pawnbroker and secondhand goods dealer license for Metro Pawn & Gun, Inc., 7529 Lyndale Avenue; and approve the renewal of pawnbroker and secondhand goods dealer license for Capital Cash LLC, d/b/a Hy’s Pawn, 6414 Nicollet Avenue. Motion carried 4-0. (Enger absent.) Item #10CONTINUE TO JANUARY 8, 2002, PUBLIC HEARING AND SECOND READING OF TRANSITORY ORDINANCE TO AUTHORIZE CONVEYANCE OF REMNANT PARCEL TO CENTURY COURT APARTMENTSS.R. NO. 318 City Manager Orduno stated the public hearing and second reading of a transitory ordinance to authorize conveyance of remnant parcel to Century Court Apartments needs to be continued to January 8, 2002 to allow more time for resolution of the public right of way issue. M/Ulrich, S/Rosenberg to continue until the Council meeting on January 8, 2002 the public hearing and second reading of the transitory ordinance to authorize the conveyance of a remnant parcel to Century Court Apartments. Motion carried 4-0. (Enger absent.) Item #11PUBLIC HEARING AND CONSIDERATION OF 2001 REVISED/2002 PROPOSED BUDGET AND TAX LEVY AND RELATED RESOLUTIONS S.R. NO. 319 City Manager Orduno stated the 2001 and 2002 budget was prepared in response to the City Council’s directive in September that the City maintain current level of services to the taxpayers, that no new spending programs will be funded and reductions were to be made to reduce the levy. She reviewed legislative actions and who benefited from the Governor’s reduction in property taxes. She discussed the continued level of City services. She said the future City services delivery in Richfield may be in jeopardy if the State continues to reduce revenues to cities and taxpayers continue to want the same services, but want to pay less. She reviewed data on the County’s tax impact on several cities with moderately priced homes. Council Meeting Minutes-11-December 10, 2001 Administrative Services Director Devich reviewed the impacts of the proposed budget including: x Gross Tax Levy History x Homestead and Agricultural Aid Comparison (HACA) x Local Government Aid Comparison (LGA) x 2001 Budget General Fund Revenue x 2002 Proposed Budget General Fund Revenues x 2001 Tax Capacity Rate x 2002 Tax Capacity Rate x 2002 Proposed Budget x Equipment Certificates Rationale x Issuance of Equipment Certificates x 2002 Equipment Certificates ($643,350) x 2002 Annual Costs for Services x 2002 Proposed Levy Estimated Impact x CPI-U vs. Gross Levy Increase Council Member Enger asked if most cities receive HACA. Administrative Services Director Devich said a large number of cities do receive HACA with weaker tax base cities receiving larger shares. He said Richfield has been a recipient of a large amount of HACA. Council Member Enger asked about the basis for receiving LGA. Administrative Services Director Devich said LGA is the sales tax revenue used to buy down property taxes. City Manager Orduno said some cities that do not get LGA seek a local sales tax option. She said this starts the disparities in cities. Administrative Services Director Devich said $2.5 million in aids has been lost and the City needs to fund the equipment needing replacement. Mayor Kirsch said the tax compression rates are set by the Legislature and cannot be changed. Council Member Enger asked about the City’s influence on Legislators during negotiations to arrive at the current tax figures. City Manager Orduno said cities are typically represented by their Mayors, Councils and citizens. She said this past session was late in discussing tax reductions, so cities had to hurry to have representatives. She said many of the current Legislators have not served in local government so they don’t understand how cities operate. She said Richfield’s Legislators fight for the City. She said cities are not paid by the State until July, so operations are on revenues the first months of the year and revenues affect the bond rating. Council Meeting Minutes-12-December 10, 2001 Council Member Ulrich said the Legislators mandate expenses and it is always a catch-up game. She said cities have never received the full amount to cover mandates. She said the prosperous south and west cities receive the breaks because that’s where there is power. City Manager Orduno explained there are federal mandates for police and fire equipment resulting from the September 11, 2001 attacks that are not funded. She said grant programs have also been slashed. Council Member Enger said the federal government should provide funding for mandates. Council Member Rosenberg stated that during the public hearing she expected respect and decorum from the audience, a time limit for each speaker and staying on the topic. Ruth Jensen, 2011 West 67th Street, asked for a close review of the budget by the City Council and requested action be tabled to provide time for review. Council Member Sandahl asked Ms. Jensen about the municipal portion of her property tax and her overall tax. Ms. Jensen said the municipal portion of her property tax increased, her overall tax was reduced. Mayor Kirsch requested residents contact their Legislators if they’re not satisfied with the current taxing system. Council Member Ulrich said it was very important to contact the Legislators. Larry Wozniczka, 6744 Wentworth Avenue, said the significant increase in municipal tax was due to equipment certificates and said the need for certificates did not exist. He said the elimination of equipment certificate would go far to reduce the City’s excessive increases. He requested the 2002 Proposed Budget be reduced to maintain the City’s history of under 3% gross tax levies. He said the municipal portion of his property tax increased, overall tax decreased. He said he took offense at City staff, coming through the City Council, believing it an entitlement of the City to the school reduction. Council Member Rosenberg said she took offense at Mr. Wozniczka’s comment regarding an entitlement. She said LGA was reduced. Larry Wozniczka said he accepted the fact of the LGA reduction. City Manager Orduno said the tax statements mailed to residents have been reduced. She said $237,000 has been reduced since the approval of the City’s preliminary levy in September. Mayor Kirsch said the preliminary levy can be reduced, but not increased. Council Meeting Minutes-13-December 10, 2001 Council Member Enger asked what percent increase a homeowner would expect with that reduction. City Manager Orduno said it would not be a huge decrease and depended on the value of the home. Woody Duvlea, 7345 Lyndale Avenue, commented on the 8.5% market value increase which wouldn’t be realized until the property is sold. He said the tax increase burdens older residents. He said the short fall could be taken care of with a 11 – 12% property tax increase. He said the municipal portion of his property taxes increased, his overall tax increased. Vicki Forslund, 6624 Morgan Avenue, said the increased tax was extreme and unjust. She said the lost aid is a legitimate increase. She said the City Council should consider a maximum levy of 10 – 11% and return to the historic 2 – 3% increase. She said residents should be asked where services could be cut and the school reduction should not be considered in the final numbers. She said some cuts could be not to distribute grants like the ones presented tonight, not replace police cars as soon, and eliminate the municipal liquor stores because they are a thing of the past and not profitable. She said her municipal tax increased, her overall tax decreased. Mayor Kirsch said the grants distributed tonight were by the Richfield Foundation which is a separate organization and has nothing to do with the City. He said the City’s liquor stores sales are number one in the State and provide funding for park improvements. George Holter, 6424 Emerson Avenue, said he was appreciative of anything that can be done for the City related to the budget. He said it was good the City reduced the budget since approving the preliminary levy in September. Don Priebe, 7225 Bloomington Avenue, read a statement on behalf of Gordon Anderson, 7501 Elliot Avenue, who was unable to attend (Clerk’s File No. C-382.) Mr. Priebe said the municipal portion of his property tax increased as well as his overall tax. Council Member Rosenberg said Mr. Anderson’s statement was related to the HRA budget, not the City budget. Mr. Priebe said the HRA is appointed by the City Council and the City Council should exercise their influence. Robert Hall, 7309 Oliver Avenue, asked what efforts the City Council took to reduce the budget. He gave several examples of line items that could be revised or reduced. He asked that unfunded mandates be specifically identified. He asked how local Legislators voted on the State’s tax plan. He said the municipal portion of his property tax increased, his overall tax decreased. Council Member Sandahl asked Mr. Hall to provide his questions to the City Manager so a response can be prepared. Council Member Enger asked how the Legislators voted. Council Meeting Minutes-14-December 10, 2001 City Manager Orduno said she wasn’t sure and suggested residents call the Legislators. Eric Fox, 6927 Wentworth Avenue, said the City Council needs to realize this is a bad situation and solutions need to be worked out. He asked if corporate taxes are increasing. He said not to use equipment certificates. He said the municipal portion of his property taxes increased as well as his overall tax. Clayton Bosquez, 7112 Oakland Avenue, said that if the total budget increase is 5% the City could gain more public goodwill by not forcing issues and by cutting down the City tax. M/Rosenberg, S/Ulrich to close the public hearing. Motion carried 5-0. Council Member Enger said the municipal portion of his property tax increased as well as his overall tax. He said he cannot deal with the City’s tax increase when, at the first possible chance, the school district will return with a special election and referendum. He said, as he stated before, he could live with fully covering all the state aid funds taken away and a 3% increase above that or now a 5% increase. He said the City does need to make up the difference for lost HACA and LGA. He said next year when the situation could be worse, he does not want to consider personnel cutbacks. He suggested management staff take a pay cut. He said the City cannot continue spending at the current level. He said he was displeased with the State tax refunds and said if that had not been done, Richfield would be all right. He said he can’t fathom raising City taxes 50+%, but raise it just enough to cover HACA and LGA losses and a 4.92% increase. He said anything is better than 21% and would like to see cutbacks from the proposed 2002 budget. He said he would like to see the increase drop to 3%. Council Member Sandahl asked Council Member Enger about his suggested specific cuts. Council Member Enger said determining cuts was the responsibility of the City Manager and Department Directors. He said the City Council should not get that deeply involved in this determination. Council Member Ulrich said it was the City Council’s responsibility to set priorities. M/Engerto eliminate equipment certificates from the budget and direct the City Manager and Department Directors to reconfigure the budget so there is a reduction. Motion failed due to lack of a second. M/Sandahl, S/Rosenberg that the following resolutions be adopted, that they be spread in the resolution book and that they be made part of these minutes: Council Meeting Minutes-15-December 10, 2001 RESOLUTION NO. 9119 RESOLUTION ESTABLISHING 2002 LICENSE, PERMIT AND MISCELLANEOUS FEES PURSUANT TO THE PROVISIONS OF APPENDIX D OF THE ORDINANCE CODE OF THE CITY OF RICHFIELD RESOLUTION NO. 9120 RESOLUTION AUTHORIZING ANNUAL ADJUSTMENT TO CITY’S MILEAGE REIMBURSEMENT RATE TO CONFORM TO INTERNAL REVENUE SERVICE STATUTORY MILEAGE REIMBURSEMENT RATE RESOLUTION NO. 9121 RESOLUTION ESTABLISHING POLICIES, PROCEDURES, AND FEES FOR THE ASSESSING DIVISION RESOLUTION NO. 9122 RESOLUTION ADOPTING THE 2003-2007 CAPITAL IMPROVEMENT PROGRAM RESOLUTION NO. 9123 RESOLUTION ADOPTING THE 2002 CAPITAL IMPROVEMENT BUDGET RESOLUTION NO. 9124 RESOLUTION RELATING TO THE 2002 SPECIALIZED PAY PLAN RESOLUTION NO. 9125 RESOLUTION RELATING TO THE 2002 MANAGEMENT SALARY COMPENSATION PLAN RESOLUTION NO. 9126 RESOLUTION RELATING TO THE 2002 GENERAL SERVICES SALARY COMPENSATION PLAN RESOLUTION NO. 9127 RESOLUTION ESTABLISHING WASTEWATER SERVICE RATES AND CHARGES, WATER RATES AND CHARGES, SPECIAL WATER SERVICE CHARGES, STORM SEWER RATES AND CHARGES, AND 6.5% PENALTY ON PAST DUE ACCOUNTS RESOLUTION NO. 9128 RESOLUTION AUTHORIZING REVISION OF 2001 BUDGET OF VARIOUS DEPARTMENTS RESOLUTION NO. 9129 RESOLUTION AUTHORIZING BUDGET REVISIONS RESOLUTION NO. 9130 RESOLUTION ADOPTING A PROPOSED BUDGET AND TAX LEVY FOR THE YEAR 2002 Council Meeting Minutes-16-December 10, 2001 RESOLUTION NO. 9131 RESOLUTION RELATING TO PURCHASING PRACTICES IN THE CITY OF RICHFIELD AMENDING RESOLUTION NO. 8298 Council Member Sandahl said the budget appeared to be integrated and it was disturbing to hear City Manager Orduno state that the situation is bad now and is going to get worse. She said there is little control of the Legislature. She said Richfield pays the price for not having a high tax base. She said commercial business taxes were reduced and an increased residential tax burden came from caucuses of businesses. She said the City Council is doing what’s best for the entire City. She said she is confident staff will be looking at ways to keep costs down. She said prior City Councils kept City taxes down and didn’t escrow for equipment replacement costs, so now the current City Council needs to use the certificates to catch up. She supported going forward with the proposed budget and appreciated the reduction since September. She said the budget will need to be diligently worked on next year. Council Member Rosenberg said her property taxes increased. She said the largest portion of the budget was for police, fire and public works services and the largest number of constituent calls are about these services. She said asking staff to reduce the budget at this late date is not reasonable. She said she didn’t understand the complaints about increased house values because everyone should want this increase. She supports the proposed budget and agrees that next year needs to be very closely reviewed. Council Member Ulrich said she did not believe it fair that higher valued homes pay a reduced tax and she will work to have lower value homes pay less, too. She said the City needs to look as though cared for, otherwise things will go down hill. Council Member Enger said the budget should have been before the City Council for review in November. He said the house value increases have not been debated, just the increased taxes. He asked if 2002 pay plans were an increase or static. City Manager Orduno said the increase for 2002 is 3.5%. Council Member Enger asked if this included union groups. City Manager Orduno said the union pay is negotiated 3 – 3.5%. Council Member Enger said he could live with the increases related to the cost of doing business and labor, but objects if the 2002 pay plans increase it more. He said he can’t sell the City tax increase to constituents and doesn’t know how other City Council Members can either. He said it forces senior citizens to move from Richfield. Council Member Rosenberg asked Council Member Enger why he did not discuss budget reductions before tonight, not even during the NLC conference this past weekend. Council Member Enger said he had made budget reduction statements before. Council Member Ulrich called for the vote. Council Meeting Minutes-17-December 10, 2001 Larry Wozniczka, 6744 Wentworth Avenue, approached the City Council calling a point of order, stating the open meeting law had been violated. Motion carried 4-1. (Enger opposed.) These resolutions appear as Resolution No.’s 9119 through 9131 in Resolution Book No. 73. Council Member Sandahl clarified that no open meeting law violation had occurred. Item #12CONSIDERATION OF SECOND READING OF ORDINANCE AMENDMENT TO CITY ADMINISTRATIVE CODE CHAPTER III, SUBSECTION 310.37 DESCRIBING PERSONAL LEAVE S.R. NO. 320 City Manager Orduno reviewed Staff Report No. 320 regarding an ordinance amendment to the City Administrative Code Chapter III, Subsection 310.37 describing personal leave. M/Sandahl, S/Rosenberg that this constitutes the Second Reading of Bill No. 2001- 19 to amend the City Administrative Code Chapter III, Subsection 310.37 describing personal leave, that it be published in the official newspaper and that it be made part of these minutes. Motion carried 5-0. Item #13CONSIDERATION OF AGREEMENT FOR PURCHASE OF THREE PARCELS OF LAND FROM BEST BUY COMPANY FOR FUTURE WIDENING OF I-494 S.R. NO. 321 City Manager Orduno reviewed Staff Report No. 321 regarding an agreement for purchasing of three parcels of land from Best Buy Company for future widening of I-494. Enger said he was concerned about the entire width of I-494 in Richfield. He requested a map displaying what the widening would do to Richfield and the proposed property takings. He said he is concerned about the freeway’s close proximity to Candlewood. He requested additional discussion on this matter at a future City Council Worksession. M/Rosenberg, S/Sandahl to approve the agreement for the purchase of three parcels of land from the Best Buy Company for the future widening of I-494. Motion carried 4-1. (Enger opposed.) Council Meeting Minutes-18-December 10, 2001 Item #13ACONSIDERATION OF APPROVAL OF RESOLUTION ESTABLISHING REVISED COUNCIL RULES OF PROCEDURE AND DECORUM FOR CITY COUNCIL MEETINGS S.R. NO. 295 Council Member Enger requested additional changes to Section 5; Subd. 9 Public Participation, (b) Open Forum of the Rules of Procedure and Decorum. M/Enger, S/Rosenberg that Section 5, Agenda; Subd. 9 Public Participation, (b) Open Forum (paragraphs 2 & 3) of the City Council Rules of Procedure and Decorum be amended to read as follows: All persons wishing to speak during the Open Forum may register either with the City Manager’s office no later than 4:00 p.m. on the day of the regularly scheduled Council meeting or by completing an Open Forum registration card and returning it to a staff member. Registration shall include their name, address and the topic on which they wish to speak. Staff will provide a list of the Open Forum speakers to the presiding officer at the start of each Open Forum. Those who registered with the City Manager’s office will be allowed to speak first, followed by those completing the registration card, and then by members of the audience wishing to speak. 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. 9115 RESOLUTION ADOPTING RULES OF PROCEDURE AND DECORUM FOR CITY COUNCIL MEETINGS Motion carried 5-0. This resolution appears as Resolution No. 9115 in Resolution Book No. 73. Item #13BCONSIDERATION OF APPROVAL OF RESOLUTION DESIGNATING INCREASE IN CITY’S CONTRIBUTION TOWARD HEALTH INSURANCE PREMIUMS FOR INTERNATIONAL ASSOCIATION OF FIREFIGHTERS LOCAL 1215 S.R. NO. 299 Council Member Enger clarified the increase is requested so that the Firefighters are offered the same insurance contribution levels already given to all union and non-union employees. Council Meeting Minutes-19-December 10, 2001 M/Enger, 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. 9116 RESOLUTION DESIGNATING CITY'S CONTRIBUTION TOWARD HEALTH INSURANCE PREMIUMS FOR EMPLOYEES COVERED BY THE INTERNATIONAL ASSOCIATION OF FIREFIGHTERS LOCAL 1215 Motion carried 5-0. This resolution appears as Resolution No. 9116 in Resolution Book No. 73. Item #13CCONSIDERATION OF APPROVAL OF CONDEMNATION COMMISSIONERS AWARD FOR 6511 CEDAR AVENUE IN AMOUNT OF $405,000; 66TH STREET/TRUNK HIGHWAY 77 INTERCHANGE PROJECT S.R. NO. 302 Council Member Enger asked who owned the remnant parcels after the ramp and bridge are complete. City Manager Orduno said they belong to Richfield and this is addressed in the Memorandum of Understanding. She said the MAC is prohibited to own property west of Trunk Highway 77. M/Enger, 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. 9118 RESOLUTION AUTHORIZING EXECUTION OF A STIPULATION OF FINAL SETTLEMENT FOR 6333 CEDAR AVENUE (PARCEL 5) (66TH STREET/TRUNK HIGHWAY 77 INTERCHANGE PROJECT) Motion carried 5-0. This resolution appears as Resolution No. 9118 in Resolution Book No. 73. CITY MANAGER’S REPORT City Manager Orduno reported that the 60 – 64 DNL noise contour within the Part 150 residential sound insulation program was recently amended. She said this results in Richfield losing insulation for 470 homes due to funding limitations and the revised mitigative contours. Council Meeting Minutes-20-December 10, 2001 Item #14CLAIMS AND PAYROLL M/Rosenberg, S/Sandahl that the following claims and payrolls be approved: RICHFIELD BANK & TRUST CO. INT Checks:110525 - 110546$175,260.60 H/C112182 - 112487$727,534.30 PAYROLL26781 – 26797; 27982 - 28132$496,719.90 TOTAL$1,399,514.80 Motion carried 5-0. OPEN FORUM No one addressed the City Council. ADJOURNMENT The meeting was adjourned by unanimous consent at 11:03 p.m. Date Approved: Martin J. Kirsch Mayor Cheryl KrumholzSamantha Orduno Recording SecretaryCity Manager