05-24-05 Regular
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Meeting
May 24, 2005
The meeting was called to order by Mayor Kirsch at 6:31 p.m.
Members Present:
Martin Kirsch, Mayor; Sue Sandahl, Susan Rosenberg; and Bill Kilian.
Fred Wroge.
Steve Devich, City Manager; Bruce Palmborg, Community Development
Director; Mike Eastling, Public Works Director; John Stark, Assistant
Community Development Director; Cheryl Krumholz, Recording Secretary;
and Corrine Thomson, City Attorney.
M/Sandahl, S/Kilian to excuse the absence of Council Member Wrooe from the May 24,
2005 City Council Worksession and Reoular City Council Meetino.
Members
Not Present:
Staff Present:
Motion carried 4-0.
No one was registered to speak.
Mayor Kirsch led the audience in the Pledge of Allegiance.
M/Rosenberg, S/Kilian to approve the minutes of (1) Special City Council Worksession of
May 9. 2005: (2) Reoular City Council Meetino of May 10. 2005: (3) Special Concurrent City
Council/HRAlPlannino Commission Meetino of May 11, 2005: (4) Special City Council Meetino of
May 11. 2005: and (5) Special City Council Meetino of May 17. 2005.
Council Meeting Minutes
-2-
May 24, 2005
Motion carried 4-0.
Item #1
Mayor Kirsch announced Mr. Susag was delayed due to a family commitment so the
Richfield Tourism Promotion Board (RTPB) presentation will be later in the meeting.
Mr. Susag arrived at 7:03 p.m.
Mr. Susag reviewed the Richfield Tourism Promotion Board financial report for years ended
December 31, 2004 and 2003.
Council Member Sandahl asked about the RTPB contributing to the Fourth of July
Committee.
Mr. Susag stated the RTPB contributes to the Miss Richfield Ambassador Program.
Item #2
Mayor Kirsch announced this item was postponed to a meeting in June.
Item #3
Mayor Kirsch stated the auditors work for the City Council and staff only provides
information as requested.
Tom Hodnefield, HLB Tautges Redpath, Ltd., presented a summary of the Comprehensive
Annual Financial Report (CAFR) which was previously reviewed by City management staff. He
described the three audit reports and summary of audit findings. He congratulated City staff,
especially the Finance Division, for successfully completing the audit.
Mr. Hodnefield reviewed the one reportable finding regarding the HRA component unit on
spreadsheets and accounting which is not considered serious. Staff has already addressed this
finding.
City Manager Devich thanked Finance Manager Chris Regis and the Finance staff for their
excellent quality work.
The City Council thanked staff for their efforts in preparing and monitoring the City's
financial reports.
Council Meeting Minutes
-3-
May 24, 2005
M/Sandahl, S/Kilian to accept the Comprehensive Annual Financial Report of the City for
the year ended December 31.2004.
Motion carried 4-0.
Item #4
Council Member Rosenberg acknowledged the efforts of the Human Rights Commission,
ISAIAH, and Jewish Education League related to the recent open forum on immigration issues. She
also acknowledged Public Safety Director Dan Scott for being a panel member during discussion.
Council Member Rosenberg announced the Richfield Beautiful Home and Garden Tour is on
June 25 & 26. Tour maps will be on sale approximately June 10 at the municipal liquor stores, Wood
Lake Nature Center and City Hall.
Council Member Sandahl thanked Representative Dan Larson, Representative Paul Thissen
and Senator Jane Ranum for their instrumental role and support in the successful passage to the
Governor of the East Richfield redevelopment tax increment financing (TIF) bill. The bill will assist in
the mitigation of impacts of the new North-South Runway at the Minneapolis-St. Paul International
Airport.
City Manager Devich stated the bill should be signed by the Governor in a couple weeks.
There is a small chance it would be vetoed since Richfield's bill is not controversial.
Mayor Kirsch thanked the City Manager, City staff and local lobbyists for their efforts on this
TIF bill.
City Manager Devich acknowledged the support of Richfield residents, Steve Lindgren and
Ernie Lindstrom, on this bill.
Council Member Kilian reported on a recent 5:30 a.m. meeting with Senator Mark Dayton,
Mayor Kirsch and City staff at the home of Jan Eggleston, a Richfield resident on the east-side who is
impacted by airport noise. Senator Dayton directed his staff to stay current on monitoring noise when
the new runway is operational.
Mayor Kirsch said Senator Dayton indicated he would return at another time to listen to airport
noise since the noise was reduced due to wind direction.
Mayor Kirsch announced he has a work commitment on June 14 so he would be late to the
City Council meeting.
Council Member Sandahl stated she will invite her friends from France who will be visiting her
to attend the June 14 City Council meeting.
Item #5
M/Sandahl, S/Kilian to approve the aQenda.
Motion carried 4-0.
Item #6
Council Meeting Minutes
-4-
May 24, 2005
Mayor Kirsch removed Items 6B and 6G from the consent calendar and placed them on the
regular agenda for consideration as Item 7.
A. Approved of resolution authorizing summary publication of ordinance amendment to Richfield
Zoning Code Section 506.07 Subd. 79 and 521.05 Subd. 11 and Section 521.21 Subd. 10
and Section 521.41 Subd. 10 to create new regulations for private driveways S.R. No. 95
RESOLUTION NO. 9617
RESOLUTION APPROVING SUMMARY PUBLICATION OF AN ORDINANCE AMENDMENT TO
SECTION 506.07 SUBDIVISION 79, SECTION 521.05 SUBDIVISION 11, AND SECTION 521.21
SUBDIVISION 10, AND SECTION 521.41 SUBDIVISION 10 OF THE RICHFIELD CITY CODE
WHICH PERTAINS TO NEW REGULATIONS FOR PRIVATE DRIVEWAYS
This resolution appears as Resolution No. 9617 in Resolution Book No. 75.
B. Removed from the consent calendar and placed on the regular agenda for consideration as
Item 7.
C. Approved resolution authorizing public hearing by City Council on proposed adoption of
modification to Redevelopment Plan for Richfield Redevelopment Project Area S.R. No. 97
RESOLUTION NO. 9618
RESOLUTION AUTHORIZING A PUBLIC HEARING BY THE
CITY COUNCIL ON THE PROPOSED ADOPTION OF A MODIFICATION
TO THE REDEVELOPMENT PLAN FOR RICHFIELD
REDEVELOPMENT PROJECT AREA
This resolution appears as Resolution No. 9618 in Resolution Book No. 75.
D. Approved resolution authorizing City not to waive monetary limits on statutory municipality
tort liability established by Minnesota Statute 466.04 S.R. No. 98
RESOLUTION NO. 9619
RESOLUTION AFFIRMING MUNICIPAL TORT LIABILITY LIMITS ESTABLISHED BY
MINNESOTA STATUTES 466.04
This resolution appears as Resolution No. 9619 in Resolution Book No. 75.
E. Approved resolution authorizing acceptance of grant from US Department of Homeland
Security, Assistance to Firefighters Grant in amount of $145,787 to purchase new self-
contained breathing apparatus for Richfield Fire Department S. R. No. 99
RESOLUTION NO. 9620
RESOLUTION AUTHORIZING ACCEPTANCE OF US DEPARTMENT OF HOMELAND
SECURITY, ASSISTANCE TO FIREFIGHTERS GRANT, RECEIVED BY THE CITY OF
RICHFIELD AND TO AUTHORIZE THE CITY TO ADMINISTER THE FUNDS IN ACCORDANCE
WITH GRANT AGREEMENTS AND TERMS
PRESCRIBED BY THE DONORS
This resolution appears as Resolution No. 9620 in Resolution Book No. 75.
Council Meeting Minutes
-5-
May 24, 2005
F. Approved resolution authorizing eligible deferral of special assessment against owner
occupied homestead propertY;cS.R No. 100
RESOLUTION NO. 9621
RESOLUTION APPROVING ELIGIBLE DEFERRAL
OF SPECIAL ASSESSMENTS AGAINST OWNER OCCUPIED
HOMESTEAD PROPERTIES IN HARDSHIP CASES FOR QUALIFYING OWNERS
This resolution appears as Resolution No. 9621 in Resolution Book No. 75.
G. Removed from the consent calendar and placed on the regular agenda for consideration as
Item 7.
H. Approved professional services agreement with McCombs Frank Roos Associates, Inc. for
preparing amendments to City's Zoning Code S.R. NO.1 02
I. Approved purchase order to Court Surface and Repair for repaving and resurfacing six tennis
courts at Augsburg Park in amount of $38,950 S.R. No. 103
M/Kilian, S/Rosenberg to approve the Consent Calendar as amended.
Motion carried 4-0.
Item #7
68. Consideration of approval of resolution authorizing off-street parking permit at
6333 Penn Avenue S.R. No. 96
Council Member Rosenberg stated she had no problem with this business or the off-street
parking permit but rather that the Penn Avenue/62nd to 66th Streets area needs a serious facelift,
especially on the east side. Residents have expressed serious concerns because the area is not up
to par with the rest of the City and she wants residents to know the area is not forgotten.
Community Development Director Palmborg said staff agrees and added that when Cedar
Point Corridor is well positioned, the focus will begin on the Penn Avenue area.
M/Rosenberg, S/Kilian that the followino resolution be adopted, that it be spread in the
resolution book and that it be made part of these minutes:
RESOLUTION NO. 9622
RESOLUTION GRANTING AN OFF-STREET PARKING PERMIT
AT 6333 PENN AVENUE
Motion carried 4-0. This resolution appears as Resolution No. 9622 in Resolution Book No.
75.
6G. Approved agreement with Richfield Historical Society, Inc. for provision of certain
services pertaining to preservation of historical City data S.R. No. 101
Council Member Kilian presented Staff Report No. 101 regarding an agreement with the
Richfield Historical Society, Inc. for the provision of certain services pertaining to preservation of
historical City data.
Council Member Kilian stated the City will make a one-time payment of up to $5,000 to the
History Center, with matching funds from citizens.
Council Meeting Minutes
-6-
May 24, 2005
John Hamilton, History Center Board Vice-President, said the funds were matched at the past
week-end's open house. He thanked the City Council and City Manager for this contribution.
Lisa Plank, History Center Director, announced the hours the History Center is open.
Mayor Kirsch stated the History Center programs continue to need funding and encouraged
residents to make contributions.
M/Kilian, S/Sandahl to approve the aareement with the Richfield Historical Society for the
provision of certain services pertainina to the preservation of historical City data and authorize the
Mayor and City Manaaer to execute the aareement.
Motion carried 4-0.
Item #8
Council Member Kilian presented Staff Report No. 104 regarding a resolution approving
property tax abatement for certain properties in the Cedar Point Project Area in the City of Richfield.
Assistant Community Development Director Stark stated an updated resolution was
distributed tonight because minor changes were made and are not of a substantive nature.
Mr. Stark discussed the abatement of county taxes with Hennepin County staff - in lieu of
participating in a tax abatement, the County ultimately provided a $2 million grant. Even though it is
now a potential for this site to be considered as a TIF district with the legislation that is pending the
Governor's signature, City staff and legal Counsel feel that the conversion of this area to a TIF district
would be inconsistent with the discussions that were held with, and the grant funds that are being
provided by, Hennepin County.
Mr. Stark stated on May 16, the Richfield HRA approved a contract for private development
with the Ryan Companies for the construction of a regional retail center. The development
agreement is contingent upon Ryan's receipt of $2,068,700 in tax abatement funds.
Mr. Stark added this project cannot be done without public assistance, which was verified by
the City's financial analyst, Ehlers & Associates.
Council Member Kilian said the abatement is a fast pay back that breaks even at 17 years and
then becomes a money making deal.
Mr. Stark stated the most conservative figures were used with worst scenarios assumed for
determining the financial obligations.
Council Member Kilian asked about the property value prior to and after the development.
Mr. Stark said that information would be provided to the City Council.
Eric (unable to read last name as written on Speaker Register), 6338 17th Avenue, asked
about development plans for the west side of 17th Avenue and a timeline.
Mr. Stark explained the Cedar Point redevelopment includes only the east side of 17th
Avenue. The tax increment financing legislation before the Governor for signature will make it easier
for future phases on the west side of 17th Avenue.
Mr. Stark stated the original design showed the buildings backed up to 17th Avenue, but
additional urban design pulls the buildings back so they're against Hwy 77. A greenway along 17th
Avenue is in future phases of redevelopment.
Council Meeting Minutes
-7-
May 24, 2005
Mr. Stark expressed caution regarding a timeline because the Ryan project needs to become
a reality, standards need to be developedJomeet housing standards for sound abatement and the
66th Street/17th Avenue intersection needs additional review.
Mayor Kirsch stated that as soon as the Governor signs the TIF legislation, the goal is to
move along as soon as possible but development takes longer than anticipated.
Council Member Kilian added that the TIF legislation is one tool that would help with
development.
Paul Lehrer, commercial property owner at 6607 18th Avenue, asked about the intersection
options and if he could have some input because he has a vested interest in the area.
Mr. Stark explained that where the intersection will ultimately be located is undecided. The
Transportation Commission will consider this issue and the City Council will hold future meetings to
provide opportunities for business and residential input.
Mr. Lehrer asked about access to his property on 18th Avenue if that street is moved. He
added that his tenants need answers.
Mr. Stark explained a temporary road at 18th Avenue would provide access.
Council Member Kilian stated tonight's discussion is related to tax abatement.
M/Rosenberg, S/Sandahl to close the public hearina.
Motion carried 4-0.
M/Kilian, S/Sandahl that the followina resolution be adopted. that it be spread in the resolution
book and that it be made part of these minutes:
RESOLUTION NO. 9623
RESOLUTION APPROVING
PROPERTY TAX ABATEMENT FOR CERTAIN PROPERTY
IN THE CITY OF RICHFIELD
Motion carried 4-0. This resolution appears as Resolution No. 9623 in Resolution Book No.
75.
Council Member Sandahl stated the tax abatement is needed to make the development
happen and it helps the whole east side. She added the money is back faster than if a TIF District
was in place.
Council Member Kilian added that the area really needs to be developed.
Mayor Kirsch stated the quality of life will be impacted, especially when the new runway is
operational.
Council Member Sandahl encouraged residents to contact the Governor to express their
support of his signing the TIF legislation.
Item #9
City Manager Devich reported on the following:
. Recognized the efforts of John Stark, Assistant Community Development Director, who
is resigning effective June 1, 2005.
Council Meeting Minutes
-8-
May 24, 2005
The City Council thanked Mr. Stark for his time at the City and that he was a real asset to staff
and the community.
. Wood Lake Nature Center was going to be featured on the David Letterman Show.
. MPCA, in principal, has agreed to put an air monitoring station in Richfield at no cost to
the City as a result of jet fuel odors coming from the MSP airport.
. MAC open houses are scheduled for June 9 and June 30 at 6:30 p.m. at Centennial
School to present information on impacts of the new North-South Runway.
. Staff continues to receive data monitoring the number of flight operations at the airport.
There is a growth in the total number of operations.
. "I love Richfield" campaign, including refrigerator magnets, window decals, t-shirts, caps
and a feature on the cable television community bulletin board.
City Manager Devich asked Bruce Palmborg, Community Development Director, to discuss a
property at 17th Avenue/66th Street that has recently been posted for sale.
Community Development Director Palmborg explained the new intersection planning is not
final and it is quite likely that property will be needed. Now may be a good time to approach the
owner regarding a possible purchase, which is a little out of sync with the process but makes sense
for both sides. Staff is seeking Council direction on how to proceed.
Council Member Kilian stated there is some advantage to the property owner and City to
discuss a possible purchase at this time since there may be a concern for a new buyer. It appears to
be the right thing to do fiscally.
The City Council consensus was to have staff begin discussions with the property owner
regarding the possible purchase of the property at 17th Avenue/66th Street that was recently placed
up for sale.
Item #10
M/Rosenberg, S/Sandahl that the followinq claims and pavrolls be approved:
M&IBANK
AlP Checks: 140478 - 140785
PAYROLL 20462-20810,39672 - 39679
TOTAL
$ 1,241,635.38
$ 458,544.59
$ 1,700,179.97
Motion carried 4-0.
Council Member Sandahl thanked staff for the format change.
Council Member Kilian thanked staff for the business unit reporting but requested a sum for
each unit also be provided.
Item #11
The City Council meeting was adjourned by unanimous consent at 8:05 p.m.
Council Meeting Minutes
Date Approved: June 14, 2005
C~h~~
Recording Secretary