08-30-05 Special
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Special City Council Meeting
August 30, 2005
The meeting was called to order by Mayor Kirsch at 5:30 p.m.
Members Present:
Martin Kirsch, Mayor; Susan Rosenberg; Fred Wroge; Bill Kilian; and Sue
Sandahl.
Staff Present:
Steve Devich, City Manager; Mike Eastling, Public Works Director; Dan
Scott, Public Safety Director; Jim Topitzhofer, Recreation Services
Director; Bruce Palmborg, Community Development Director; Brad Sveum,
Acting Fire Services Director; Bill Fillmore, Liquor Operations Director;
Chris Regis, Finance Manager; and Cheryl Krumholz, Recording
Secretary.
Item #1
City Manager Devich stated that the City Council discussed last year the possible change in
the composition of the HRA to all City Council Members instead of some citizen membership. With
the approaching resignation of Tom Harms and with another term expiring in October, the City
Council may wish to discuss HRA membership at this time. In the mid 1970's, the City Council was
the HRA.
Council Member Wroge expressed support to have the City Council serve as the HRA
because they are the elected officials who make decisions for the City.
Council Member Sandahl stated that at one time, the HRA had no City Council as members
which is why the HRA may be transitioning back to some City Council as members - there are
currently two. She added that some former City Council Members have served on the HRA in the
past. She said she is open to changing the HRA membership.
Council Member Rosenberg stated she believes citizens serve well on the HRA and does
not see a reason to change.
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August 30, 2005
Mayor Kirsch asked about the City Charter addressing the HRA membership.
City Manager Devich stated he believed the Charter was open to a City Council decision.
Council Member Kilian said both options of City Council membership compositions could be
debated effectively but he leans more to the City Council being the majority on the HRA.
Mayor Kirsch expressed agreement with Council Member Rosenberg. There are currently
two City Council with three citizens on the HRA which provides some balance.
Council Member Kilian said that the City Council wants and appreciates different views from
the advisory commissions and the City Council has the final decision. The HRA is different
because it is independent.
Council rvtember Wrage said the HRA Commissioners are not voted into office but is a
powerful group that should not be considered political appointments like the MAC and Met Council
members. The City Council has a chance to do the right thing at this time.
Council Member Sandahl said a compromise would be that one of the two upcoming
vacancies could be a City Council.
Mayor Kirsch requested the City Manager review the City Charter and provide information
on the HRA membership requirements.
The City Council consensus was to consider having the HRA membership consist of a City
Council majority.
Item #2
City Manager Devich reported that the Minnesota Legislature has enacted a new law that
requires cities and school districts to adopt a policy that controls out-of-state travel for elected
officials. The new policy must be in place by January 1, 2006, pending a recorded vote by the City
Council. The League of Minnesota Cities developed a model policy and a draft policy is before the
City Council to get feedback on possible additional provisions.
Council Member Sandahl said the elected official's policy appears to be very similar to the
City employee travel policy. In general, one City Council is authorized to travel to an out-of-state
conference per year.
Council Member Kilian stated the City Council approves the City Council traveling to
conferences.
Council Member Wrage said he thought the point of the policy was to restrict travel. He
suggested the current employee travel policy be revised to eliminate the "Restriction of Flight
Hours" because reality is, the plane is going to fly anyway and the airline will not pay for
unnecessary overnight accommodations. He also suggested the Transportation Section under
Expenses Approved For Reimbursement be revised to indicate coach fare is the only option for
out-of-state travel.
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August 30, 2005
Council Member Sandahl explained the rationale for the Restriction of Flight Hours section.
She added that staff does not travel a great deal.
Finance Manager Regis stated that in the past ten years, no first class air passage has
been used and the flight hours restriction has not been an issue.
Council Member Kilian stated this discussion is a result of trying to codify policies and why it
should be kept less restrictive. Travel arrangements should be arranged as economically as
possible.
Council Member Wroge said the City Council should be aware of the message sent to the
public by the City Council when approving travel arrangements.
Item #3
City Manager Devich presented the 2005 Revised/2006 Proposed Budget overview,
"Moving Toward Financial Independence", including:
. Timetable & Key Events
. 2006 Budget Influences
. Key Issues for 2006
. History of State Aid Losses
. 2006 Proposed General Fund Budget
. Major Initiatives & Issues
. Revenue Comparison
. LGA Comparison
. Gross Tax Levy History
. 2006 (2005) Proposed Budget General Fund Revenues
. 2006 (2005) Proposed Budget General Fund Expenditures
. 1996/2006 Expenditure Profile
. General Fund History
. Full-Time Regular Personnel
. 2006 Proposed Levy Estimated Impact
. Where Are We Going?
Council Member Wroge asked about the Truth-in-Taxation (TNT) meeting in December,
which means public comment waits until then.
City Manager Devich explained the TNT meeting is set by State Statute but the City Council
could conduct additional meetings for public comment. He added the tax levy needs to be set by
September 13. After that, the levy can be reduced but not increased.
Council Member Wroge suggested an open meeting for public comment be held in October.
If an error is found and needs to be reconsidered or something additional comes up, it will be too
late to be addressed if it waits until December.
City Manager Devich stated additional City Council meetings are a City Council policy
decision.
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August 3D, 2005
Mayor Kirsch asked if the PERA rate increase in 2006 is a one-time event.
City Manager Devich stated an increase is anticipated from 2006-2010 because the plan is
underfunded. -
Council Member Wroge suggested a Special City Council Worksession be conducted to
fully understand the tax levy estimated impact.
City Manager Devich explained that is a City Council policy decision, which could be made
tonight because this is a Special City Council meeting. He added that if the franchise fees are
removed from the budget, there will be a big financial hole needing to be filled.
Council Member Wroge suggested the franchise fees be placed on the property tax rolls.
He added increases should not go around a back door because there isn't courage to increase
property taxes.
City Manager Devich stated he disagreed regarding the lack of courage to raise property
taxes to provide services. The legislature is allowing city councils to decide on their tax levies.
City Manager Devich reviewed and answered questions regarding the revised and
proposed Legislative/Executive Department budget. The divisions reviewed included
Council/Mayor, Other Agencies, Human Services, City Manager, Legal, Boards/Commissions.
Council Member Wroge asked about the cost of an in-house attorney versus the current
outside firms.
City Manager Devich explained most cities do not have in-house attorneys because it costs
more plus outside firms have a broader-based knowledge on legal issues.
Council Member Sandahl stated funding needs to begin to be set-aside for the 2008
Centennial Celebration.
Finance Manager Regis reviewed and answered questions regarding the revised and
proposed Administrative Services Department budget. The divisions reviewed included
Administration, Finance, IT, CATV, Assessing, Human Resources, Risk Management and City
Clerk.
Public Safety Director Scott reviewed and answered questions regarding the revised and
proposed Public Safety budget. The divisions included Support Services, Police, Inspections and
Emergency Services. He also reviewed the Part 1 Crime Trend and Construction Valuation.
Acting Fire Services Director Sveum reviewed and answered questions regarding the
revised and proposed Fire Services budget.
Community Development Director Palmborg reviewed and answered questions regarding
the revised and proposed Community Development budget.
Council Member Wroge suggested a better marketing job be done for the redevelopment
south of 66th Street at Cedar Avenue and not to wait until companies come in the door.
Council Member Kilian asked about single-family homes in Richfield that are owned by the
Met Council and don't pay property taxes.
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August 30, 2005
Council Member Rosenberg explained each suburb was to provide a certain number of
homes for low-income families related to the Holman project. Richfield has ten such homes.
Council Member Wroge asked about group homes paying property taxes.
City Manager Devich stated the City has no jurisdiction on these homes and he would
check into the taxes.
Council Member Sandahl said franchise fees and utility fees address this issue because
properties can be charged for the services used but not pay property taxes.
Council Member Rosenberg acknowledged the good efforts of the City with the Kids-at-
Home Program resulting in families staying in Richfield. The family must have a child in the
Richfield public or private school to be eligible to participate.
Council Member Wroge asked about determining who and how the eight homes on 66th
Street and 17th Avenue are to be purchased by the City and MAC.
City Manager Devich explained a contract with MAC will be developed to determine the
splitting of acquisition costs. The City will need to establish a funding source, which may be a
special assessment of the developer paying 20% and the City 80%.
Council Member Wroge said if everyone benefits from the improvement, the entire City
should pay for it. He added that costs should be known right now to include in the budget.
Public Works Director Eastling reviewed and answered questions regarding the revised and
proposed Public Works budget. His review included General Fund Divisions of Administration,
Engineering, Streets, Park Maintenance and Forestry, Utility Divisions of Water, Wastewater and
Storm Sewer and Internal Funds of Central Garage and Building Services.
Council Member Sandahl asked about the re-planting of lost boulevard trees.
Public Works Director Eastling provided information on the tree replacement process.
Private trees are not tracked and Hennepin County roadways are not included.
Recreation Services Director Topitzhofer reviewed and answered questions regarding the
revised and proposed Recreation Services budget. His review included the General Fund
Divisions of the Wood lake Nature Center, Recreation Programs and Community Center. He also
reviewed the Ice Arena, Pool and Special Facilities Divisions.
Liquor Operations Director Fillmore reviewed the revised and proposed Liquor Operations
budget.
Council Member Wroge asked about the $500,000 transfers from liquor to the Special
Revenue Fund.
Finance Manager Regis explained that transfer amount appears to be fair since it has
increased and decreased over seven years. This amount does not include police service fees and
in lieu of taxes.
City Manager Devich explained staff has discussed various property maintenance options
to address the concerns of the City Council and community. This is scheduled for discussion at
the October 11 City Council Worksession.
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August 30,2005
Council Member Sandahl asked about making on-line water bill payments.
Public Works Director Eastling said the new billing system may change the billing schedule.
Finance Manager Regis added that the new system should have an automatic debit
capability.
City Manager Devich reminded the City Council that the second session of the long-range
key financial strategies planning with Ehlers & Associates is scheduled for September 13. If the
City Council desires additional budget meetings, the City Council should notify staff.
The City Council consensus was to conduct a Special City Council meeting on September
13 at 5:30 p.m. to continue discussion on the budget.
Council Member Sandahl requested the City Council discuss specific concerns with staff
prior to the September 13 City Council meeting.
All budget presentation materials are in Clerk's File No. C-410.
The meeting was adjourned by unanimous consent at 9:52 p.m.
a~~
Cheryl K umho z '
Recording Secretary
Date Approved: September 13, 2005