01-11-05 Worksession
CITY COUNCIL MINUTES
Richfield, Minnesota
Special Worksession
January 11, 2005
The meeting was called to order by Mayor Kirsch at 5:32 p.m.
Others Present:
Martin Kirsch, Mayor; Bill Kilian; Fred Wroge; Susan Rosenberg; and Sue
Sandahl.
Steven Devich, Acting City Manager; Mike Eastling, Public Works Director;
Bruce Palmborg, Community Development Director; Jim Topitzhofer,
Recreation Services Director; Brad Sveum, Acting Fire Services Director; Dan
Scott, Public Safety Director; Bruce Nordquist, Housing & Redevelopment
Manager; Pam Dmytrenko, Assistant to City Manager; and Cheryl Krumholz,
Recording Secretary.
State Representative Paul Thissen; Met Council Representative Russ Susag;
State Senator Jane Ranum (arrived at 5:37 p.m.); and Hennepin County
Commissioner Randy Johnson (arrived at 5:55 p.m.).
Members Present:
Staff Present:
Item#1
State Representative Thissen explained Representative Dan Larson was unable to attend
tonight because he was at a Ways & Means Committee meeting. He added Senator Jane Ranum
would be late because she was also in a committee meeting.
Mayor Kirsch presented the Major Legislative Issues for Richfield - 2005 and Beyond.
1. Preserve current LGA for 2006. If LGA is to be further reduced, ensure the
reductions are incremental rather than the drastic cuts seen for 2005 ($1,025,000).
Council Member Sandahl explained that the City budget and tax levy are set in December for
the next year and if local government aid (LGA) is cut, the City's only options are additional budget
cuts.
State Representative Thissen stated he anticipated significant resistance for further LGA cuts
and that there was no thought of eliminating it altogether. He added that Richfield handled the LGA
cuts well and there are other cities in worse situations.
Mayor Kirsch said the LGA cuts are preferred to be incrementally. He added that the City
Council directed staff to wean Richfield off LGA.
Senator Ranum arrived.
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January 11,2005
Senator Ranum stated the LGA needs to get back into a structural balance and it is too soon
to tell on additional cuts.
2. Hennepin County will seek special legislation to open a Deputy Registrar office at
Chicago Avenue and Lake Street. This is within Richfield's business area and will repr sent a
substantial loss of business, if approved.
Acting City Manager Devich reported on an anecdotal study that indicated one out of three
Richfield deputy registrar customers is from the Minneapolis Chicago/Lake zip code. Hennepin
County originally asked Richfield to consider giving up their Deputy Registrar office based upon
incorrect information they had on the number of transactions and annual revenues. The Richfield
Deputy Registrar office has annual revenues of $430,000 in motor vehicle transactions and $47,000
in passports.
Acting City Manager Devich added the Deputy Registrar situation is a delicate matter with
Hennepin County who has been a great partner in many issues.
Mayor Kirsch asked about the deputy registrar transaction accuracy rate.
Acting City Manager Devich said the accuracy rate is 99%.
Council Member Sandahl stated Richfield's service is very good and fast.
3. Additional outside revenues are required to continue the redevelopment efforts in the
Cedar Avenue Corridor south of 66th S.treet. Richfield will seek special legislation to make TIF
a viable tool by substituting a noise impact zone definition for building condition standards.
Mayor Kirsch stated the new runway is to be operational in October 2005 so it is critical to
move forward with redevelopment efforts and mitigate noise impacts to ensure Richfield residents of
some quality of life.
Council Member Kilian discussed a new study from the Federal Reserve from Chicago
regarding a new runway at the O'Hare airport. He said MAC is diminishing the housing
quality/values. This study indicates the property value increases at a slower rate. Deterioration in the
area could be stopped with a buffer of a high-class development so the adjacent property maintains
its value. If TIF is not possible, financing needs to become creative.
Council Member Sandahl stated a baseline study of airport noise prior to the new runway
being operational was made so benchmark data can be used with MAC.
Mayor Kirsch said tax dollars were used to do the study. He requested the Legislators receive
information on the NOISE Conference to be held in Eagan this summer.
State Representative Thissen asked about financing plans.
Acting City Manager Devich explained TIF will be revisited from previous financing plans.
Council Member Kilian asked the Legislators how the City would receive funding.
Senator Ranum explained the information is sent to the Revisior's office.
Community Development Director Palmborg reviewed the redevelopment status for the north
and south side of 66th Street at Cedar Avenue. The City is working with Ryan Company on a
development on the north side; the south side is not yet being actively marketed because it is hoped
that when the north side is going, it will serve as a magnet for developers.
Community Development Director Palmborg explained all the financing pieces for the north
side have been identified, with TIF as the anticipated financing tool for the south side.
State Representative Thissen asked about the desired type of development to the south.
Community Development Director Palmborg stated making redevelopment work on the south
side will be challenging and a wide variety of revenue sources will be considered.
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January 11,2005
Hennepin County Commissioner Johnson arrived.
Mayor Kirsch thanked Hennepin C6Uflfy for their share ($2 million) for the north side
development of 66th Street/Cedar Avenue.
4. The City strongly supports the State Bonding Bill because of recreation needs and a
need to realign public infrastructure(s~r~et ~nd public utility to support redevelopment).
Recreation Services Director Topitzhofer explained this bill is to provide funding to focus on
trail improvements and planning for regional trails.
Community Development Director Palmborg explained the infrastructure needs along the
Cedar Corridor redevelopment.
5. Support efforts by Congressman Sabo in securing federal transportation funding for
77th Street/Lyndale Bridge/Cedar Avenue Underpass.
Mayor Kirsch explained transportatjgn funding for the underpass was diverted to the Penn
bridge improvements and now to the Lyndale Avenue bridge but all the work needs to get done
because local traffic improves as well as the regional system.
Council Member Sandahl stated 1-494 never quite makes it to the top of the list for funding
improvements and keeps getting done in pieces. She asked the Legislators to keep this key
transportation link on the radar screen.
6. Continue to seek legislation to allow Richfield to acquire the Primary Service Area
(PSA) for advanced life-support ambulance service.
Acting Fire Services Director Sveum explained the City Council directed staff to pursue the
PSA so the City has control over how the ambulance service is provided in Richfield. It is also a
revenue source for the City. The current service is good but local control is desired.
State Representative Thissen stated this matter has resistance at the Capitol. He suggested
the Legislators discuss the PSA with City staff to determine the best strategy.
Hennepin County Commissioner Johnson explained there may be a lack of understanding on
the amount of revenue generated in providing this service and operating a PSA is not as simple as it
appears. He said he's not sure the City wants to do this service and that after more conversations, of
which he is willing to participate, the City may be less likely to want to pursue operating a PSA.
7. Oppose the sale of wine, strong beer and liquor in grocery stores. Further, the City
strongly supports retaining the right to establish city enterprise operations in response to
community needs, local preferences, State mandates or to ensure residents' quality of life.
Mayor Kirsch stated $500,000 of Richfield liquor sales is used for capital improvements.
Senator Ranum said she got the impression at the Capitol that there was no interest in
bringing this issue up again.
State Representative Thissen suggested municipal liquor stores present a united front in
explaining how funds are used.
Acting City Manager Devich stated the primary issue is the control of sales and operation.
Met Council Representative Susag said at the Edina meeting with Legislators, their number
one issue was control of liquor sales and operation.
Acting City Manager Devich explained there was a recent report from the State Auditor on city
enterprise funds, especially liquor operations, and it would be sad to see the State mandate cities to
discontinue enterprise funds.
Hennepin County Commissioner Johnson apologized for missing the discussion on Priority #2.
He stated Hennepin County is trying to provide full service to an increasing diverse population.
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January 11,2005
Senator Ranum asked about the City's position on the smoking ban.
Council Member Rosenberg stated the Advisory Boarc~ qf He~lth has made a recommendation
but the City Council has not yet addr~ssed it.
Mayor Kirsch added. the County and State responses also need to be considered.
The meeting was adjourned by uhanimous consent at 6:22 p.m.
Date Approved: January 25. 2005
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