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HomeMy WebLinkAbout09.20.10 Council Packet City of Farmington 430 Third Street Farmington, MN 55024 Mission Statement Through teamwork and cooperation. the City of Farmington provides quality services that preserve our proud past and foster a promisingfuture. FARMINGTON CITY COUNCIL Todd Larson, Mayor Terry Donnelly Julie May Christy Fogarty Steve Wilson AGENDA REGULAR CITY COUNCIL MEETING SEPTEMBER 20, 2010 7:00 P.M. CITY COUNCIL CHAMBERS Action Taken 1. CALL TO ORDER 7:00 P.M. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVEAGENDA 5. ANNOUNCEMENTS/COMMENDATIONS a) Recognize Retirement - Bill Weierke Recognized 6. CITIZEN COMMENTS / RESPONSES TO COMMENTS (This time is reservedfor citizen comments regarding non-agenda items. No official Council action can be taken on these items. Speakers are limited to fIVe minutes to address the Council during "Citizen Comment" time.) 7. CONSENT AGENDA a) Approve Council Minutes (9/7/10 Regular) b) School and Conference - Engineering c) School and Conference - Finance d) Approve Game Ice Rental Agreement - Administration e) Hydrant Flushing - Municipal Services f) Adopt Resolution - Accept Donation Rambling River Center - Parks & Recreation g) Adopt Ordinance - Amending Downtown Commercial Overlay District Design Standards for Screening and Fencing - Planning h) Adopt Ordinance - Amending Erosion Control and Turf Establishment Regarding Installation of Sod on New Construction - Planning i) August 2010 Financial Report - Finance j) Approve Beer License Ugly Mug - Administration k) Approve Bills Approved Approved Approved Approved Information Received R52-10 Ord 010-627 Ord 010-628 Information Received Approved Approved REGULAR AGENDA (The Council takes a separate action on each item on the Regular Agenda. If you wish to address the Council regarding any or all of the items on the Regular Agenda, please address the item when the item is discussed Speakers will be given at least three minutes to speak per item. Additional time may be granted to speakers representing two or more persons.) 8. PUBLIC HEARINGS 9. AWARDOFCONTRACT 10. PETITIONS, REQUESTS AND COMMUNICA TIONS a) Adopt Resolution - Amending Schwiness Retail Center (Farmington Marketplace) Planned Unit Development Agreement - Planning b) Approve Purchase of Playground Equipment - Parks & Recreation c) Approve Memorandum of Understanding with DARTS - Parks & Recreation 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) Adopt Ordinances - Utility Franchise Fees - Administration 13. COUNCIL ROUNDTABLE a) Set Budget Workshop b) Neighborhood Tornado Recognition c) Ice Arena Ribbon Cutting 14. EXECUTIVE SESSION a) Labor Relations R53-10 Approved Sept 27,5:30 p,m, Information Received Sept 25, 12:00 15. ADJOURN Persons with a disability may request a reasonable accommodation by contacting the City Administrator's office at 651-280-6803. Request should be made 24 hours in advance or as early as possible to allow time to arrange accommodation. Table of Contents Agenda. . . . . . . . . . . . . . . . . . . . 3 Approve Council Minutes (917/10 Regular) 917/10 Council Minutes . . . . 5 Water Resource Conference Water Resource Conference . 15 MnGFOA Conference MnGFOA Conference. . . . . 16 Approve Game Ice Rental Agreement Memo . . . . 17 Agreement. . . . . . 18 Hydrant Flushing hydrant flushing 2 . . 20 Adopt Resolution Accept Donation to the Rambling River Center memo . . . . . . . . . . . . . . . . . . . . . . . . . . 21 resolution . . . . . . . . . . . . . . . . . . . . . . . . 22 Adopt Ordinance Amending Downtown Commercial Overlay District Design Standards for Screening and Fencing Downtown Comm Overlay fence amendment MemoCC . . 23 Downtown Comm Overlay fence ordinanceCC. . . . . . . 25 Adopt Ordinance Amending Erosion Control and Turf Establishment Regarding Installation of Sod on New Construction Erosion Control and Turf Establishment MemoCC . .31 Erosion Control and Turf Establishment amendment Ord.CC . . . . . . . . . . . . . . 33 August 2010 Financial Report August Memo . . . . . . 36 August Report. . . . . . 40 Approve Beer License - Ugly Mug Ugly Mug Beer License . . 44 Approve Bills List of Bills. . . . . . . . . 45 Adopt Resolution - Amending Schwiness Retail Center (Farmington Marketplace) Planned Unit Development Agreement - Planning PUD Amendment memo Schwiness Farmington Marketplace. . . . , . . . . . . . . . . . . . . . . 65 PUD amendment resolution. , . . . . . . . , . . . 69 SCHWINESS PUD Amendment Number One (2). . 71 schwiness pud21 . . . , , , . . . . . .74 schwiness21. . . . . . . . . . . , . , . 83 Approve Purchase of Playground Equipment memo . . . 85 drawings. . . . . . . . . . . . . 87 1 Approve Memorandum of Understanding with DARTS memo. . . . . . . . . . . . . . . MOU. . . . . . . . . . . . . . . . Adopt Ordinances - Utility Franchise Fees Franchise Fees Memo. . . . . . MN Energy Franchise Fee Ord . . Dakota Electric Franchise Ord. . . Dakota Electric Franchise Fee Ord . Xcel Energy Franchise Ord . . . Xcel Energy Franchise Fee Ord. Ordinance Summary. . . . . Neighborhood Tornado Recognition E-mail . . . . . . . . . . . . .90 .92 .94 .95 .98 .107 .110 . 120 . 123 . 126 2 7a... COUNCIL MINUTES REGULAR September 7, 2010 1. CALL TO ORDER The meeting was called to order by Mayor Larson at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE Mayor Larson led the audience and Council in the Pledge of Allegiance. 3. ROLL CALL Members Present: Members Absent: Also Present: Audience: Larson, Donnelly, Fogarty, Wilson May Andrea Poehler, City Attorney; Peter Herlofsky, City Administrator; Teresa Walters, Finance Director; Randy Distad, Parks and Recreation Director; Kevin Schorzman, City Engineer; Lisa Shadick, Administrative Services Director; Cynthia Muller, Executive Assistant Beve Preece, Mike Barnet, Russell Hatten, Bob Erickson, Bruce Rydeen, Sue & Brian Miller, Rosemary Swedin, Charlie Weber, Dave McMillen, Jerry Ristow, David Pritzlaff 4. APPROVE AGENDA Mayor Larson added item 71) Change Order #1 Pilot Knob Trail Extension Project to the Consent Agenda. MOTION by Wilson, second by Fogarty to approve the Agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS 6. CITIZEN COMMENTS Mr. Russell Hatten, 1241 Willow Trail, stated several years ago there was a smoking ban in restaurants. Now there are patios outside where people smoke. His concern was that the Council allows the businesses to break the law by playing extremely loud music and late into the night. He strongly objects to this. He has been told the permit is unti112:00 a.m., but they play unti11 :00 a.m. He was referring to the American Legion. The bands play too loud and too long. A few weeks ago he called the police at 12:15 a.m. and asked why they were still playing. The officer went there and called Mr. Hatten back at 12:20 a.m. The officer said they will shut down at 12:20 a.m. and laughed about it. A half hour later they were shooting extremely loud frreworks in the air. In his neighborhood there are 150 townhouses and 50 homes. That is 200 homes immediately behind the American Legion. Most of the people do not like the loud Saturday night music. He has friends that live by the cul-de-sac on the south end of town and they also hear it. He would like 5 Council Minutes (Regular) September 7, 2010 Page 2 the City to stop giving the Legion a permit. If they want the noise, keep it inside as they did a few years ago. Mayor Larson stated they will have the Police Chief check into this and make sure they stay below the decibel levels. Mr. Hatten stated he talked to the Police Chief and he said there was nothing they could do because the Council gave them a permit and he should talk to the Council. Mr. Mike Barnet, Pastor at New Heights Christian Fellowship, 501 Walnut Street, their church is between 5th Street and 6th Street on Walnut that has been buried behind dirt and big equipment the last four months. They want to celebrate the completion of this massive project so people can drive to their church again. They will be having a community block party with a fair and crafts. They will raise money for the food shelf and encourage people to bring donations for the food shelf. There will also be games and entertainment for the kids, a bake sale, and live music. This is a community block party to celebrate the road opening again. This will be held October 2,2010. Mr. Bob Erickson, 18224 Justice Way, expressed his appreciation on behalf of his daughter for the excellent follow-up on the tornado clean-up. The clean-up was well planned and thought out. The dumpsters were an excellent idea, the public works staff was following up within 72 hours picking up debris. This motivated the neighborhood. The repairs are ongoing, but when you have a natural disaster it is always good to have the community behind you. Not often enough does staff receive thanks for the work they do and they did a remarkable job. Even the website told people the rules of clean-up. Everything was in place and it was done timely and efficiently. Mayor Larson also thanked staff for the great job they did. They are hearing this from residents all over the City. 7. CONSENT AGENDA MOTION by Fogarty, second by Wilson to approve the Consent Agenda as follows: a) Approved Council Minutes (8/16/10 Regular) (8/23/10 Workshop) b) Approved Firefighter Training Grant - Fire Department c) Approved School and Conference - Fire Department d) Approved School and Conference - Fire Department e) Approved 2010 WHEP Contract - Natural Resources f) Acknowledged Retirement Municipal Services - Human Resources g) Acknowledged Retirement Fire Department - Human Resources h) Approved Appointment Recommendation Liquor Operations - Human Resources i) Adopted RESOLUTION R49-10 Accepting Fitness Equipment Donation Rambling River Center - Parks and Recreation j) Approved School and Conference - Planning k) Approved Bills I) Approved Change Order #1 Pilot Knob Road Trail Extension Project- Engineering APIF, MOTION CARRIED. 8. PUBLIC HEARINGS 6 Council Minutes (Regular) September 7, 2010 Page 3 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS a) Adopt Ordinance - Defining Warehouse Retail and Conditionally Allowing Warehouse Retail in the IP Zone - Planning Mr. Doug Vinge, owner of the property at 21025 Eaton Avenue in the Industrial Park, has a proposal from NAP A Auto Parts to locate a distribution/retail center in a portion of his building. The property is currently zoned IP where warehousing is a permitted use, but retail is not. Staff is proposing to amend the ordinance to defme a new use within the IP district for warehouse/retail. The defmition is: "A facility used for the conduct of a business that invo lves the storage and distribution of goods or merchandise from the premises that also contains a retail component that comprises less than 30% of the total floor area occupied. No outdoor display or storage is allowed with this use." Staff is also recommending allowing this as a conditional use in the IP district. This will allow the Planning Commission to review the interior site plan to confrrm the 30% requirement is met. MOTION by Fogarty, second by Donnelly to adopt ORDINANCE 010-626, amending sections 10-2-1 and 10-5-21 defming Warehouse Retail and conditionally allowing Warehouse Retail in the IP Zone. APIF, MOTION CARRIED. b) Approve Agreement Installation Slop Sink Ice Arena Project - Parks and Recreation Staff is requesting approval to hire a contractor to install a slop sink in the Ice Arena. This change order was not approved in June and directed staff to contact Farmington Youth Hockey Association regarding doing the work. The FYHA did not have any members interested in doing the work. Staff contacted six local plumbers and three quotes were received. The low quote was received from Performance Plumbing and Heating in the amount of $960. The contingency amount remaining for the project is $37,788.95. Councilmember Fogarty noted $104 of the bid was for a permit. Parks and Recreation Director Distad stated the fee will be less as the City only pays the State surcharge. CounciImember Wilson stated this worked out well to use a local contractor. He asked if the City has the ability to carve out items from projects and direct the work be done locally. City Attorney Poehler agreed this process was fine. MOTION by Fogarty, second by Wilson to approve the agreement with Performance Plumbing and Heating for completing the installation of the slop sink at the Schmitz-Maki Arena. Voting for: Larson, Fogarty, Wilson. Abstain: Donnelly. MOTION CARRIED. 7 Council Minutes (Regular) September 7, 2010 Page 4 c) Approve Artwork Display Policy Rambling River Center - Parks and Recreation There have been requests to display artwork at the Rambling River Center. Staff presented a policy that provides the following direction: - the criteria to be met before the artwork will be given approval to be displayed - the process used in selecting artwork to be displayed - the length oftime artwork can be displayed - the location of where the artwork will be displayed - states there is no fmancial compensation in exchange for the Rambling River Center displaying the artwork - identifies the different types of artwork allowed to be displayed in the Rambling River Center CounciImember Fogarty noted artwork exceeding $100 in value will not be allowed. She asked if that was for vandalism or liability and how is that determined. Staff explained the artist will be asked to identify a value. Artwork should be at a lesser value as the building is open to various groups after hours. Councilmember Wilson asked how religious artwork will be determined. Staff explained they are trying to get away from artwork that is pushing a specific religious belief or theme. CounciImember Wilson asked about a painting of a Christmas tree and would that be banned. City Attorney Poehler stated this policy will be a work in progress. As those issues come up, it may get more defmed. If a Christmas tree is not the overriding theme of the picture that should not be an issue. Mayor Larson suggested dealing with it if complaints are received. City Attorney Poehler noted courts have said that Christmas trees are no longer a religious symbol and are more generic to the season. MOTION by Fogarty, second by Wilson to approve the Artwork Display Policy for the Rambling River Center. APIF, MOTION CARRIED. d) Approve Agreement Depot Way Arts Park Concrete Sidewalk Project- Parks and Recreation The brick paver sidewalk in the Depot Way Arts Park has deteriorated to a point where it needs to be replaced. Staff obtained six quotes. The low quote of $11,548.50 was received from Minnesota State Curb and Gutter, Apple Valley. This includes removal of existing pavers, 4 inch concrete sidewalk, 6 inch concrete pedestrian ramp, and truncated dome panels. MOTION by Fogarty, second by Donnelly to approve the agreement with Minnesota State Curb and Gutter for the Depot Way Arts Park Concrete Sidewalk Project. APIF, MOTION CARRIED. e) Adopt Resolution - Approve Development Contract Riverbend 3rd Addition - Engineering The plat for the Riverbend 3rd Addition was approved at the August 16, 2010, meeting. Conditions of the Development Contract include: - the Developer enter into this agreement - the Developer provide the necessary security outlined in the agreement 8 Council Minutes (Regular) September 7, 2010 Page 5 - the Developer pays the identified development fees in ful~ of $173, 194 prior to the City signing the contract - the Developer record the plat and the deeds for Outlots A, C and F, prior to the City signing the Development Contract. MOTION by Wilson, second by Donnelly to adopt RESOLUTION R50-10 approving the execution of the Riverbend 3rd Addition Development Contract and authorize its signing contingent upon the above conditions and final approval by the Engineering Division. APIF, MOTION CARRIED. 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) Adopt Resolution - Approve 2011 Preliminary Tax Levy and Budget - Finance The City is required to adopt a preliminary levy before September 15. At the August 23, 2010, workshop, Council gave direction to reduce the general fund budget by $400,000. Staff presented items totaling this reduction. CounciImember Fogarty felt there was a lot of discussion that needs to happen with the budget reductions. There are certain things that she will not approve such as closing the warming houses. Council asked for a resolution with a dollar amount that is presented and she was comfortable passing that resolution. Council and staffhave a great deal of work to do on where those reductions will come from. She appreciated staff only had two weeks to work with the numbers. She felt a workshop was the appropriate place to go through the items line by line. CounciImember Wilson felt the discussion at the workshop and this document are two different things. Mayor Larson added not even close. CounciImember Wilson appreciated the work staffhas done, but for example, there is a $130,000 item with staff'mg considerations. He agreed with discussing this in more detail in a workshop. CounciImember Wilson felt Council had a good discussion and came to a good decision with the $400,000 reduction. The cuts that are outlined, which are part of the 4% Council requested, seem arbitrarily directed at residents and potentially at Council with no packets being printed. He did not have money to purchase a laptop and did not have a printer. He did not see any consideration noting his recommendation to reduce Council stipends to what they were two years ago. This needs to be discussed again. He asked if staff established the start-up costs for the Deputy Registrar. City Administrator Herlofsky stated he has been working on a budget with Human Resources Director Wendlandt and projecting costs and revenues. Staff hoped to have something ready by the next meeting. Councilmember Wilson felt Council could have gotten a sense of that prior to today. In the discussions it would be interesting to determine what capacity the EDA has with dealing with those start-up costs and if this could be a function of the EDA. Councilmember Wilson agreed we need to go through this 9 Council Minutes (Regular) September 7, 2010 Page 6 line by line. He does want to see a $500,000 reduction. He realized there is a memo stating another $100,000 reduction. He will be looking for $500,000 prior to a fmal vote in December. He trusted staffwill be working with Council to come to a point where we can agree on that. Another item to check on is the $54,000 for a squad car. Staff clarified this is for two squad cars. Councilmember Wilson wanted to know the implications of holding off for one year. City Administrator Herlofsky stated all these items have been discussed with department heads. There is a memo with reductions for another $100,000. Councilmember Wilson felt the document does not reflect the discussion at the workshop, but appreciated the effort put into it. Councilmember Donnelly stated he does not totally agree with Councilmember Wilson. Council asked staff to cut $400,000, and perhaps not the way you wanted it done, but he wanted to point out some major things. There is $254,000, almost 4.5%, was cut from the general fund; the debt service increased by 27,5%, $562,000; we lost $65,000 in market value homestead credit; the Fire Relief levy went down by $64,000; Police salaries went up 3.5%; because ofthe market, investment income went down by $32,000; and on the plus side we have more building permit revenue and the fiscal disparities went up by $234,000. The big thing is the $562,000 of levy increase we need to make the bond payments. Revenues are going down and the bond payments are going up. He appreciated the work that was done on this. We will discuss the details further. This gives us the outline and there are some staffmg reductions built in, which is tough, and he appreciated that also. He was not surprised by this, but staff did what they were asked to do. Mayor Larson stated the $562,000 extra in bond payments is no fault of the City. It was due to a developer and a land owner disagreeing and taking the land to court. The land was tied up during the prime years of development. When they settled and the land could be sold, we were in a recession. When the project was set up, everyone thought that within five years there would be more than two buildings on the property. Because of the lawsuit and the recession that did not happen. The City is now responsible for $562,000. As far as the budget, he agreed with the $400,000. He does not agree with a lot of how we got there. When he looks at this document and the minutes from the workshop he wondered if we were all at the same meeting. There is a point of diminishing return and he wondered ifwe were not there in the document presented to Council. It almost looks like the City is getting set up to fail with how tight everything is. Some of the cuts are not reasonable and are not realistic and that does concern him. He is also concerned with the loss of five frrefighters. At meetings the Fire Chief said he could live with the reduction of two members and still run the department. A five member reduction concerns the Mayor and the Fire Chief. Finance Director Walters stated the two members were part ofthe 2% and the 4% includes five members. Mayor Larson stated he wants that department to be able to put out a frre. That is public safety and he wants to look at that. There will be a discussion at a workshop to get closer to Council's thoughts. 10 Council Minutes (Regular) September 7, 2010 Page 7 Councilmember Wilson noted he also had a concern with the Fire Department. He felt Council would prioritize public safety near the top. That is where we can discuss some tradeoffs and things that are the highest priority for residents. He noted the $400,000 is a reduction off the originally proposed number. Mr. David Pritzlaff, 20255 Akin Road, agreed that at the workshop there were items mentioned as far as cuts to reach the $400,000 and $500,000 reductions. The majority of Council directed staff to get there through cuts of personnel. At the workshop it was stated re-organization of management and the Economic Development Specialist position. There were positions to be looked at as cuts which have a big dollar amount. Other than the five frrefighters, the $400,000 in cuts that are shown are basically nothing more than the fat that has been in this budget all along. There are certain parts saving $1,000 in water consumption and trash, Kleenex and toilet paper being donated are pennies and that is not what was talked about at the workshop. This Council clearly gave Administration direction of how they wanted to see these cuts and you did not get those. At the workshop Councilmember Fogarty wanted to set a policy as far as bond payments so this situation does not happen again. Mr. Pritzlaff asked how do we set a policy and direction and it is not followed. The next item was reducing positions to reach the $500,000 reduction. Everything that is proposed for the frrst $400,000 has nothing to do with personnel cuts; it is the fat of the budget that should have been taken off months ago and saved a lot oftime in the budget meetings. Council did ask for a lean budget to start with, Seeing how easy it was to cut $400,000 from the fat of this budget, there has been a lot oftime wasted. Councilmember Fogarty stated two positions were cut in the reductions that were presented. She did not like hearing someone say there is fat in the budget. There has never been fat in our budget. This City runs very lean. She was talking to a Councilmember from Crookston who has a staff similar to ours and their City is only 8,000 people. That should be very reflective of how lean Farmington runs. She respectfully disagreed with Mr. Pritzlaff's comments that we are reducing fat from the budget. Mr. Pritzlaffasked how can we slash $450 in office supplies, reduce water consumption and trash by $1,000, Ifwe weren't already doing this, why throw $1,000 towards that now. When you can shave $1,000 off water and trash, that should be an everyday occurrence no matter what. He respectfully disagreed that there was not fat cut in the budget. As far as the two positions in the reductions, that was not the direction ofthe majority of Council at the workshop. Mayor Larson commented that is what he meant by the diminishing return; he was not sure we can cut $1,000 so he wants an explanation on how we can do that. The $1,000 is just a number. Mr. Pritzlaff stated these are projections and each year you have to readjust the budget at the end of the year. If these savings all down the line are not met, and you only save $200,000, at the end ofthe year you have a $200,000 reduction rather than $400,000. If you do it like the majority of Council 11 Council Minutes (Regular) September 7, 2010 Page 8 directed and took staff from higher levels, it would be automatic. You would save staff salaries. Mr. Pritzlaff noted the memo states all employees that are dismissed are eligible for unemployment paid by the City directly. That is a fraction ofthe wage. At $100,000/person you top out at $580/week for unemployment. For a $70,000 position you would pay $30,000 in unemployment, but you are saving $40,000. It is a scare tactic to not get rid of a position because you will have to pay unemployment. MOTION by Fogarty, second by Wilson to adopt RESOLUTION R51-10 to approve the 2011 preliminary budget with a preliminary tax levy increase of 3.73% and set the Truth-in-Taxation hearing for December 6, 2010 at 7:00 p.m. APIF, MOTION CARRIED. b) 2011 Budget Additional Reductions - Administration City Administrator Herlofsky stated this is a follow-up for further reductions and from the previous discussion it sounds like Council would like to look at those options. Mr. David Pritzlaff, 20255 Akin Road, noted the memo states Council has requested items that would reduce the budget by another $100,000 for a total of $500,000. The list includes eliminate the Economic Development Specialist position, management re-organization and do with less management, a furlough, or change weekly hours to four 9-hour days. Mr. Pritzlaff stated this is done in the summer for building permits, etc. Now we want to close City Hall for a full day. That will prevent people from bringing in revenue. There is more in the upper management and personnel levels that need to be cut fmancially for the City because you have not only the salaries, but also the benefIts. Regarding the Deputy Registrar, when the contract was approved Mr. Pritzlaffbrought up the start-up costs for this item. He stated for us to go this far into the budget and not have a start-up cost is ridiculous. Those numbers should have been brought to Council by now. The revenue and start-up costs will not break even in a short enough period of time for Council to do this. He was appalled that Council did not have those numbers by now. 13. COUNCIL ROUNDTABLE a) Yellow Ribbon Event, September 22 There will be a special event on September 22, to celebrate Farmington being the frrst Yellow Ribbon City in Minnesota. Council has been provided with a tentative agenda. The event will be at Boeckman Middle School with events throughout the day. Mayor Larson noted the morning session is limited seating and by invitation only. As many Councilmembers as possible should attend the afternoon session. Councilmember Wilson: Asked about setting a date for the next budget workshop. Council set the workshop for September 13, 2010, at 7:00 p.m. 12 Council Minutes (Regular) September 7, 2010 Page 9 Councilmember Fogarty: Reminded everyone school started today and be careful when driving. She received an e-mail from Kris Akin with the Farmington Food Shelf. They need help tomorrow morning to unload pallets of food. She also read a list of items needed at the food shelf. In the next couple months, she would like Council to discuss composition of a Teen Board and a Tree Board and place it on an October agenda. Mayor Larson noted the Tree Board has been presented to serve as the Tree Board. The Planning Commission would like to meet with the Council on this. City Administrator Herlo/sky: Regarding the budget preparation, every effort was made to go through the budget. When people talk about fat in the budget, we budget as best we can with each department trying to determine what is the best and worst that can happen. We have trimmed every bit of extra. Any extra is passed over to the next year. It is a positive way to increase the fund balance. We have gotten everyone down to bare bones. One thing we have to consider is, earlier staff was congratulated for the way they handled the tornado clean-up. Council has been informed with costs associated with that. Because the budget has contingencies we are able to cover those costs. There was another community that had a storm and they could not pick up the trees. With the excellent City employees who work very hard and cooperation between departments everything was taken care of. When you trim the budget, you are trimming that little extra. He took responsibility for items Council felt were not what they directed, but sometimes we are looking further on. If someone eliminates a position we have to look at how to staff the area it supported and whether the work will also go away or just the position. We are trying to make adjustments and we have an opportunity next week to make those corrections. Finance Director Walters: This was not easy to cut $400,000 from the budget, Numerous hours were spent with department heads trying to determine where to cut. With a lot of that we may have to come back and say we need this because we don't know what will happen. It was difficult and very time consuming. She clarified for September 13, Council wants to see the $500,000 or revise the $400,000. Councilmember Wilson stated regarding the start-up costs for the Deputy Registrar, we do need to have that information, and see what $500,000 would look like. If that cannot be done by Monday, then we have to look at a different date. City Administrator Herlofsky suggested at the workshop to go through the detail list that has been provided and determine what Council does not want reduced to frrm up the $400,000. The second memo gives other options and we should determine what options we want to take. City Engineer Schorzman: On September 22, Dakota County is hosting an open house to discuss the updates to their transportation plan for the overall update of the Comp Plan. Staff has been working with the County on updates to the transportation plan and they have added some things into the plan the City has been asking about for years. 13 Council Minutes (Regular) September 7, 2010 Page 10 Mayor Larson: He met with Glen Anderson regarding Farmington Heart Restart and they are looking for trainers. You do not need to be in the medical field and it takes 40 minutes to become a trainer. The trainers would take the information to various groups and organizations to get as many people trained in Heart Restart as possible. They will also be at the open house for Fire Station 2 on October 7. He asked everyone to shop locally. Residents should check Twitter or Nixie for City notices. 14. ADJOURN MOTION by Fogarty, second by Wilson to adjourn at 8:11 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 14 76 ,/'\Mj"'~ 'W li."j ~ . Ill'" au ! . -; . e ' \'\ . <i" " ~..... A ...'13(/;;' City of Farmington 430 Third Street Farmington, Minnesota 651.4617111 . Fax 651.463.2591 w\....w.ci.f,mniu!:,'1..m.nm.LL.. TO: Mayor, Councilmembers, City Administrator FROM: Kevin Schorzman, P.E., City Engineer SUBJECT: School and Conference DATE: September 20, 2010 INTRODUCTION The University of Minnesota Water Resources Center offers the annual Minnesota Water Resources Conference. DISCUSSION The Minnesota Water Resources Conference is being held this year in St. Paul on October 19th and 20th. The conference provides an opportunity for staff to keep up-to-date on a variety of issues related to storm water. In addition to general sessions, the conference offers six concurrent sessions with each session having four topics to choose from. The topics include storm water best management practices (BMP's), surface water management, water resource policy, sediment loading, agriculture and water quality, policy and permitting, ground and surface water interaction, and monitoring. BUDGET IMPACT The cost for early registration for this conference (prior to October 5th) is $230.00. Funding for this conference is included in the 2010 budget for NPDES and the Storm Water fund. The total budget impact will be $460.00. ACTION REOUESTED Approve Kevin Schorzman & Jennifer Dullum's attendance at the Minnesota Water Resources Conference. Respectfully Submitted, Kevin Schorzman, P.E., City Engineer 15 7e City of Farmington 430 Third Street l'armington, Minnesota. 651.280.6800. Fax 651.280,6899 www.ci.mrmingtun.mn.LL.l TO: Mayor, Council Members, and City Administrator FROM: Teresa Walters SUBJECT: MnGFOA Conference DATE: September 20,2010 INTRODUCTION: I would like to attend the Minnesota Government Finance Officers Association (MNGFOA) conference in Alexandria on September 22,2010. DISCUSSION: Every year the Minnesota Government Finance Officers Association holds a conference in Alexandria, MN. This year's conference is from Wednesday, September 22nd through Friday September 24th. The conference gives Finance Directors the opportunity to fmd out the details on various changes in mandates, pronouncements, and Government Accounting Standard Board (GASB) regulations. Topics include GASB 51 and 54 updates, Budget and CAFR reporting, Long-term planning, internal controls, legislative update, economic update, investments, and tax increment fmancing. The conference also gives us the opportunity to network and discuss cost- saving ideas implemented in various cities. BUDGET IMPACT: The cost of the conference is $250. The special hotel rate for attendees is $106 per night (for 2 nights). Mileage is $163. All meals are included in the conference price. Since the previous fmance director also attended this conference annually, this conference is included in the 2010 Budget. ACTION REQUESTED: Approve Finance Director's request to attend this training conference. Respectfully submitted, Teresa Walters Finance Director 16 7d City of Farmington 430 Third Street l'armingtoll, ,r...1inncsota 651.280.6800. Fax 651.280.6899 W\....w.ci,fdrmingttm.mn.LL.. TO: Mayor and Councilmembers FROM: Peter J. Herlofsky, Jr. City Administrator SUBJECT: Game Ice Rental Agreement DATE: September 20, 2010 INTRODUCTION I DISCUSSION Attached is a Farmington High School Game Ice Rental Agreement for the 2010-2011 school year. The School Board approved this agreement at a recent meeting. The agreement states the school district will pay the City $325/hour for games, and the School District will receive 100% of the game receipts. ACTION REOUESTED Approve the Farmington High School Game Ice Rental Agreement. Respectfully submitted, Peter J. Herlofsky, Jr. City Administrator Cmuller/Herlofsky/Council memos/Game Ice Rental Agreement 9-20-10 17 City of Farmington 430 Third Street FarmingtOTI, Minnesota 651.280.6800. Fax 65 1.2 R0.6R99 w~'W.cl.farnJ.i.n.gton.mn,us FARNUNGTONBIGHSCHOOL GAME ICE RENTAL AGREEMENT Independent School District No. 192 (School District) and the City of Farmington (City) agree as follows: This Agreement covers the 2010-2011 school year. The School District hereby agrees to pay to the City $325 an hour for Farmington High School varsity and junior varsity games. Since the School District is tax exempt no taxes will be charged. The City agrees to forward to the School District 100% of the gross ticket proceeds from Farmington High School hockey games. In consideration of being allowed to use the Schmitz-Maki Arena (Arena), the School District, for itself and each of its members, hereby voluntarily assumes all risks of accident or damage to its property and to any person and property of said members and hereby releases and agrees to defend and indemnify the City, its officers and employees from every claim, liability or demand of any kind for or on account of any personal injury or damage of any kind sustained by it and each one of its members or guests, whether caused by negligence by the City, its officers or employees. The parties agree that the release, defense, and indemnification obligations of this Agreement are intended to be as broad and inclusive as is permitted by the laws of Minnesota. If any portion thereof is held invalid, it is further agreed that the balance shall, notwithstanding, continue in full legal force and effect. Further, the School District agrees that it and its members and guests using the Arena shall abide by all rules and regulations from time to time in effect governing the use thereof. It is understood that the City and the School District each reserves the right (1) to cancel this Agreement for any default by either party in terms of this Agreement and (2) to reschedule the dates or times of permitted use of said facilities on 20 days written notice. In the event of mechanical failure of the Arena's equipment, the School District shall be notified by the Arena staffas soon as possible. The condition of the ice sheet becomes the responsibility of the Arena staff. Prepaid fees for hours canceled due to mechanical failure shall be reimbursed to the School District. The School District shall receive a refund of the amount owed for ice rental when the following conditions apply: 1. When the School District has declared school closed due to inclement weather or other emergency condition, Act of God/Force Majeure. 2. When the Minnesota State High School League curtails all practice times for any reason. Pherlofsky/Parks & Recl2010/High School Game Ice Rental Agreement 8 3010 18 All invoices or refunds due to the School District under this Agreement shall be sent directly to the School District's Business Office. The City shall provide and pay for the following: · Admission personnel · Concession personnel . One (1) scoreboard operator · One (1) announcer The School District shall provide and pay for the following: · First-aid personnel · Game referees · Goal judges when deemed necessary by the Athletic Director The School District shall be responsible for notifying their opponents of the game schedule and fees set forth by the City for the Arena. FARMINGTON SCHOOL DISTRICT ISD #192 CITY OF FARMINGTON, a Minnesota Municipal Corporation By: Brad Meeks Its: Superintendent By: Todd Larson Its: Mayor By: Peter J. Herlofsky, Jr. Its: City Administrator Pherlofsky/Parks & Recl2010/High School Game Ice Rental Agreement 830 10 19 7~ City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800. Fax 651.280.6899 w\....w.ci.mrmington.nm.LL.. TO: Mayor, Council Members, and City Administrator FROM: Todd Reiten, Director of Municipal Services SUBJECT: Hydrant Flushing DATE: Septernber20ili,2010 Introduction The City of Farmington's Municipal Services will be flushing hydrants during the weeks of; . October 4ili - October 8ili (Hydrants north ofHWY 50 and west of railroad tracks) · October llili - October 15ili (Hydrants in the remaining areas, downtown and east of tracks) Flushinl! oneration Hydrant flushing is done twice a year in the spring and fall. Hydrant flushing is done to check frre hydrants and flush out any accumulated rust. Rusty water is expected during the flushing process. To avoid getting rust on clothing residents should avoid doing laundry during hydrant flushing dates. If laundry stains occur, keep the discolored items damp and pick-up a bottle of rust remover at the City Hall or Maintenance Facility. A map outlining the tentative schedule is available on the city website, Action Reauested This memo is for information only and meant for possible calls the Mayor or City Council may receive during the hydrant flushing procedure. Respectfully submitted, Todd Reiten Director of Municipal Services 20 7F City of Farmington 430 Third Street Farmington, l\.1inncsota 651.280.6800. Fax 651.280.6899 www.ci.rdrmingttm.nm.LL.I TO: Mayor, Councilmembers and City Administrator FROM: Randy Distad, Parks and Recreation Director SUBJECT: Adopt Resolution Accepting Donation to the Rambling River Center DATE: September 20,2010 INTRODUCTION A donation was recently received by the Rambling River Center that included the purchase and installation of a motion detector light by the northeast parking lot door. DISCUSSION The Coffee Club, which is a program ofthe Rambling River Center, raised funds to purchase a motion detector light for the entrance door located by the northeast parking lot. This area had inadequate lighting, causing this area to be quite dark in the evening. Helm Electric in Lakeville was then contacted about installing the light and agreed to donate their time and materials to install the light. Staffwill communicate the City's appreciation on behalf of the Council to Coffee Club members and to Helm Electric for their donations to this lighting improvement. ACTION REOUESTED Adopt the attached resolution accepting the donation of the motion detector light from the Coffee Club and its installation by Helm Electric. Respectfully Submitted, Randy Distad Parks and Recreation Director 21 RESOLUTION No. R52-10 ACCEPT DONATION OF A MOTION DETECTOR LIGHT FROM COFFEE CLUB MEMBERS AND INST ALLA TION OF THE MOTION DETECTOR LIGHT BY HELM ELECTRIC, INC. Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota, was held in the Council Chambers of said City on the 20th day of September, 2010 at 7:00 p.m, Members Present: Larson, Donnelly, Fogarty, May, Wilson Members Absent: None Member Wilson introduced and Member Fogarty seconded the following: WHEREAS, Coffee Club members raised funds in the amount of $100.32 to purchase a motion detector light for the Rambling River Center; and, WHEREAS, Helm Electric donated time and materials for the installation of the motion detector light at a value of$125.00; and, WHEREAS, it is required by State Statute and in the best interest of the City to accept such donations, NOW, THEREFORE, BE IT RESOLVED that the City of Farmington hereby accepts with gratitude the generous donations of the motion detector light from Coffee Club members and the installation of the motion detector light by Helm Electric. This resolution adopted by recorded vote of the Farmington City Council in open session on the 20th day of September, 2010, ~~- Mayor Attested to the~ l1~ay of September 2010. SEAL 3r City of Farmington 430 Third Street I-armington, Minnesota 651.280.6800. Fax 651.280.6899 www.ci.f<lrmingttm.mn.LL.l TO: Mayor, Council Members, City Administrator FROM: Tony Wippler, Assistant City Planner SUBJECT: Adopt Ordinance Amending Section 10-6-28 (Downtown Commercial Overlay District Design Standards) Regarding Screening and Fencing DATE: September 20, 2010 INTRODUCTION Attached for Council's consideration is an ordinance amending Section 10-6-28 (Downtown Commercial Overlay District Design Standards) as it relates to screening and fencing. DISCUSSION The Downtown Commercial Overlay District was established and design standards implemented in 2009. Currently, the design standards only vaguely mention fencing in the Screening requirements section, which is listed below: (I) Screening: I. Screening of service yards, refuse, and waste removal areas, loading docks, truck parking areas and other areas which tend to be unsightly shall be accomplished by the use of walls, fencing, dense planting, or any combination of these elements. Screening shall block views from public rights of way, private street and off street parking areas, and shall be equally effective in winter and summer. Chainlink and slatted fencing are prohibited. It is staff's intent with the drafted ordinance to add more specificity on types and heights of new fencing allowed for commercial properties in the overlay zone. Generally, the proposed amendment includes the following: 1. Adding language to allow fences up to eight (8') feet in height if used for screening purposes provided a building permit has been approved through the Building Inspections Department. 2. Adding language regarding all other non screening fences (Decorative Fencing). Discussing height, location and acceptable material for decorative fencing. 3. Adding language for fence maintenance. 4. Adding language that no fence shall be attached to a historic landmark building or structure. 23 Planning Commission Review The Planning Commission held a public hearing on this matter on September 14, 2010 and recommended approval ofthe attached ordinance with a vote of 4-0. ACTION REOUESTED Adopt the attached ordinance amending Section 10-6-28 of the zoning code. Respectfully submitted, Tony Wippler, Assistant City Planner 24 CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA ORDINANCE NO. 010-627 AN ORDINANCE AMENDING SECTION 10-6-28 OF THE ZONING CODE CONCERNING THE DOWNTOWN COMMERCIAL OVERLAY DISTRICT DESIGN STANDARDS THE CITY COUNCIL OF THE CITY OF FARMINGTON ORDAINS: SECTION 1. Section 10-6-28 is amended by adding the underlined language below as follows: 10-6-28: DOWNTOWN COMMERCIAL OVERLAY DISTRICT DESIGN STANDARDS: (A) Purpose: The purpose of this section is to establish design standards pertaining to the commercial buildings in the downtown commercial district. The design standards are intended to do the following: 1, Encourage integrated site planning to create a cohesive, sustainable built environment. 2. Maintain and reinforce "small town" and "main street" architectural traditions. 3. Encourage an active, walkable, pedestrian environment, 4, Maintain the character of historic buildings. 5, Unify and articulate building facades, 6, Place a strong visual emphasis on streetscapes, 7, Require new construction to be compatible with existing buildings, 8. Provide for the compatible integration of commercial and residential uses located on the edge of the downtown commercial district. 9, Encourage replacement or remodeling of architecturally incompatible buildings. 10, Adaptively reuse older buildings that contribute to the district's sense oftime and place. 11. Encourage the dev,elopment of pocket parks, gardens, plazas, and courtyards for public use, ' 12, Establish well defined transitions (mixed use buildings) between the downtown and adjacent neighborhoods, (B) Overlay District Boundary: The downtown commercial overlay district (DC) is described as the property located south of the Vermillion River, west of 4th Street, north of Walnut Street and east of 1 st Street. (C) Process: The downtown commercial overlay district design standards will be administered through the site plan process in section 10-6-23 of this chapter and, if required under the design review process in section 2-11-5 of this code. (D) Applicability: All new construction and renovations or additions of existing commercial structures in the DC district will be required to meet the standards in this chapter, unless otherwise provided, Projects exempt from meeting the standards are those commercial buildings that are comprised of any of the following project types: 1. Interior remodels; 2. Buildings used solely for residential purposes; 3. Normal or routine maintenance and repair of existing structures; 4, Construction that does not require a building permit. (E) Building Material And Design: 1, In the case of new construction, renovations, or additions, seventy percent (70%) or more of the total surface area of exterior walls exposed to public view shall consist of a mixture of two (2) or more of the predominant downtown finish materials (clay, brick, stucco, natural stone, ornamental concrete; except for portions of exterior walls not visible from the public viewshed), Extruded metal storefront framing may be used only on window or door frames. 2. Transparent glass must comprise a minimum of fifty percent (50%) (but shall not exceed 75 percent) of the total wall area of the first floor elevation on the primary facade; transparent glass or facade openings shall comprise a minimum of twenty percent (20%) (but shall not exceed 50 percent) of the total wall area on the upper floor elevation of any street facade; upper story windows will be vertically proportioned and have the visual appearance of traditional double hung sash, 3, Blank, windowless walls shall be avoided wherever possible. 4. Exterior walls shall not be covered with metal panels, EIFS (exterior insulation and fInish system), vinyl siding, faux half timbering, logs, shakes, shingles, exposed aggregate, or poured in place concrete. 5. Preassembled clay brick panels, artificial stucco, decorative precast units resembling stone, and other modem materials may be used that similarly match the appearance of historic materials. 6. Standardized corporate or "trademark" commercial building types shall be constructed to meet the architectural style of the downtown, which includes building materials, glass, color, and signage. 7. The ground or street level of a building shall be visually distinguished from the upper level(s) through the use of colors and/or building materials. 8, Imitation of historical styles shall be encouraged in new construction and renovation of existing buildings; references to historic architectural styles and periods will be interpreted in a contemporary manner; new and renovated buildings shall reinforce and not compete with heritage landmark properties, 9, New commercial buildings shall solidify the relationship between old and new buildings and support a human scaled, street oriented downtown environment. InfIll construction on side streets shall be designed with architectural features such as brick facades. 10. The massing and bulk of new buildings shall be mitigated by varied massing and proper articulation of street facades, Large "big box" commercial buildings shall be designed to appear as multiple storefronts by breaking the facade into smaller bays of twenty feet (20') in width in order to maintain a pattern integrated with and similar to surrounding buildings. 11. The size, scale, massing, and facade materials of new construction will complement the architectural character of existing historic buildings identified as heritage landmarks. 12. Corner buildings shall be designed with two (2) street facades and a main entrance on both sides, 13, The maximum height of new construction shall be forty five feet (45'). 14, Rooflines shall be flat or gently sloping, f" (F) Awnings/Canopies: 1. Where Allowed: Awnings/canopies shall be allowed over the fIrst floor windows and along the frontage of all building entrances, 2, Projection; Support':"bwnings and canopies shall not project more than ,five feet (5') into the public right of way, except where located above an entrance, in which case the maximum projection shall not exceed eight feet (8'), Awnings and canopies may not be supported by poles or other structural elements located in the public right of way, 3, Length: Awnings and canopies should emphasize the rhythm of the facade bays, windows and entrances, and shall not continue uninterrupted along the building facade, 4, Height: The bottom of awnings and canopies should be at least eight feet (8') above sidewalk grade. 5. Illumination: Backlit awnings and canopies are not permitted. 6, Inscription: Lettering on awnings and canopies shall comply with subsection 10-6- 3(B)I(k) of this chapter. 7. Materials: Awning and canopy materials should be limited to cotton, acrylic or vinyl coated cotton, copper or bronze coated metal, or clear glass, Awnings shall be designed with a slope, No horizontal awnings are allowed. Structural supports shall be constructed of steel and/or aluminum and shall (if or where visible) incorporate ornamental features, (G) Parking Areas: 1, Required off street parking shall be provided by spaces at the rear or sides of a building and provided with architecturally compatible security lighting, and screened with landscape buffers or low walls. 2, Underground and structured parking shall be encouraged and new parking structures shall be compatible with (but not indistinguishable from) adjacent buildings in terms of height, scale, massing, and materials, (H) Landscaping: I. Landscaping within the downtown commercial overlay district shall comply with section 10-6-10 of this chapter, (I) Screening & Fencing: 1. Screening of service yards, refuse, and waste removal areas, loading, docks, truck parking areas and other areas which tend to be unsightly shall be accomplished by use of walls, fencing, dense planting, or any combination of these elements. Screening shall block views from public rights of way, private street and off street parking areas, and shall be equally effective in winter and summer, Fencing for screening-pUrposes may be installed at a height of up to eight (8') feet. with the approval of a building permit. Fencing used for screening purposes shall only be . allowed in the side and .rear yards, . Chainlinkand slatted fencing are prohibited, 2, Mechanical equipment, satellite dishes, and other utility hardware, whether lOcated on the roof or exterior of the building or on the ground adjacent to it, shall be screened from the public view with materials identical to or strongly similar to building materials, or by landscaping that will be effective in winter, or they shall be located so as not to be visible from any public right of way, private street or off street parking area. In no case shall wooden fencing be used as a rooftop equipment screen. 3, Decorative Fencing: All fencing (with the exception of fencing identified in the screening requirements of Section 10-6-28 IO) oftms ordinance) visible from 'a public right of way shall not exceed a height of six (6') feet in the side and rear yards and four (4') feet in the front yards, Decorative fencing shall consist of the following materials: (a) Wrought Iron (b) Vinyl (c) Ornamental Aluminum 4. Fencing Maintenance: The maintenance of all fences within the Downtown Commercial Overlay District shall be in accordance with Section 1 0-6-12(H) of the Zoning Ordinance. 5. No fencing shall be attached to any historic landmark building or structure, (1) Signs: 1, Notwithstanding contrary provisions in this code the following provisions are allowed in the DC district: (a) Projecting signs perpendicular to the building. Projecting signs shall comply with subsection 1 0-6-3 (B)5(e) of this chapter (Spruce Street signs), (b) Wall signs flat along building frontage as required in subsection 1O-6-3(B)3(a) of this chapter. (c) Monument1signs are allowed where existing building is set:back from front property line as required in subsection 1O-6-3(B)3(b) of this chapter, (d) Painted wall signs shall be permitted through a conditional use permit per subsection 10-6-3(B)I(1) of this chapter, (e) A-frame signs are allowed per subsection 10-6-3(B)I(t) of this chapter. 2, Signs on historic landmark buildings must: a) not cause damage to historic architectural features or building materials as a result of installation; and b) should be designed and installed in such a manner that when they are removed or replaced there is no physical evidence of their former presence. In other words, holes may not be drilled in historic masonry, alterations may not be made of historic character defining windows or doors, and no fasteners may be attached to any historic trim. (Ord, 009-611, 10-19-2009) SECTION 2. Effective Date, This ordinance shall be effective upon its passage and publication according to law, ADOPTED this 20th day of September, 2010, by the City Council of the City of Farmington, CITY OF FARMINGTON BY:~~ Todd Larson, Mayor r-- ATTEST: SEAL: Approvedastoformth~7 daYOf~~ ,2010. ~.~ . City A orney -- - Published in the Farmington Independent the day of ,2010, ,"-,_,1 ~ CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA SUMMARY OF ORDINANCE NO. 010-627 AN ORDINANCE AMENDING SECTION 10-6-28 OF THE ZONING CODE CONCERNING THE DOWNTOWN COMMERCIAL OVERLAY DISTRICT DESIGN STANDARDS NOTICE IS HEREBY GIVEN that, on September 20,2010, Ordinance No, 010-627 was adopted by the City Council of the City of Farmington, Minnesota, NOTICE IS FURTHER GIVEN that, because of the le:pgthy natureofOrdinance-N0;' 010-627, the following summary of the ordinance has been prepared for publication, NOTICE IS FURTHER GIVEN that the Section I 0-6-28 amendment changes the Downtown Commercial Overlay District Design Standards regarding screening and fencing, The updates are intended to add more specificity on types and heights of new fencing allowed for commercial properties in the overlay zone. A printed copy of the whole ordinance is available for inspection by any person during the City's regular office hours, The ordinance is also available on the city's internet home page, APPROVED for publication by the City Council of the City of Farmington this 20th day of September, 2010. CITY OF FARMINGTON SEAL Approved as to form this~ day of September, 2 6strator By: Published in the Farmington Independent theyP1day Of,-",~~_-.J , 2010. 142593v2 1 7;; City of Farmington 430 Third Street l;armington, Minnesota 651.280.6800. Fax 651.280.6899 www.ci.tarmingttm.nm.LL.. TO: Mayor, Council Members City Administrator FROM: Tony Wippler, Assistant City Planner SUBJECT: Adopt Ordinance Amending Section 11-4-5 (Erosion Control and Turf Establishment) Regarding the Installation of Sod on New Construction DATE: September 20, 2010 INTRODUCTION Attached for Council's consideration is an ordinance amending Section 11-4-5 (Erosion Control and Turf Establishment) as it relates to the installation of sod on new construction. DISCUSSION The City's Engineering Division has requested that Section 11-4-5 of the Subdivision Code be revised to reflect current procedures for installation of sod on new construction. The following portions of Section 11-4-5 are proposed to be eliminated from the code: (J) The required sod must be in place before a final certificate of occupancy will be issued. If the sod is not in place and occupancy is requested by the builder, a temporary certificate of occupancy may be issued. The builderlhomeowner is required to install sod within sixty (60) days after the temporary certificate of occupancy is issued. It is the responsibility of the owner to establish turf in the area where sod is not required. A fmal certificate of occupancy will be issued only after the turfhas been established. The remaining areas of a lot that are not required to have turf established prior to issuance of the fmal certificate of occupancy should be established with turf within sixty (60) days after the issuance of the fmal certificate of occupancy. (K) In periods of adverse weather conditions between approximately October 16 and April 30, a temporary certificate of occupancy may be issued, but the installation of sod must be completed on or before July 1. There are two reasons why the above referenced language is no longer warranted. First, the City does not withhold the issuance of a certificate of occupancy for new construction because the installation of sod is incomplete. This is because the installation of sod is not seen as a life safety issue. Secondly, per letter L of Section 11-4-5, the City requires that a $2,000 escrow is given to 31 the City, at the time of building permit, to ensure the grading and installation of sod and seed is completed and in accordance with the approved grading plan. Planning Commission Review The Planning Commission held a public hearing on this matter on September 14, 2010 and recommended approval ofthe attached ordinance with a vote of 4-0. ACTION REOUESTED Adopt the attached ordinance amending Section 11-4-5 of the subdivision code. Respectfully submitted, Tony Wippler, Assistant City Planner 32 CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA ORDINANCE NO, 010-628 AN ORDINANCE AMENDING SECTION 11-4-5 OF THE SUBDIVISION CODE CONCERNING EROSION CONTROL AND TURF ESTABLISHMENT THE CITY COUNICL OF THE CITY OF FARMINGTON ORDAINS: SECTION 1. Section 11-4-5 is amended by adding the underlined language and removing the strikethrough language below as follows: 11-4-5: EROSION CONTROL AND TURF ESTABLISHMENT: (A) Developers and builders are required to follow the erosion and sediment control program. The program outlines minimum steps that will be required on building sites where bare soil is exposed, Due to the diversity of building situations encountered, each site will be individually evaluated and where additional measures or variances are needed they will be specified at the discretion of the city engineering division, (B) All grading plans and building site surveys will be reviewed for effectiveness of erosion control measures in the context of the site topography and drainage. If plans or surveys do not specify erosion control, these measures will be described on the plans or surveys by the city's engineering division based on the Minnesota pollution control agency's "best management practices", Plans and surveys with erosion control specified are then returned with the permits, (C) Silt fence is required to control erosion on all sites. The builder is responsible for properly installing erosion control immediately after backfill of the foundation. If the required erosion control is not installed within twenty four (24) hours after backfill of the foundation, the builder will be issued a stop work order until erosion control measures meet city requirements. An approved certificate of survey along with the permit card shall be posted on the job site. The builder is responsible to maintain the silt fence during the construction process, The city inspector or engineer will retain the right to require additional silt fence at any time to ensure that erosion does not occur, Silt fence/hay bales will not be required when the ground is frozen as determined by the city, (D) Temporary rock entrances are required on every construction site and are required after backfilling of foundation. If the rock entrance is not installed immediately after backfilling, a stop work order will be issued until the rock driveway is installed. Rock driveways will also be required during the winter months after backfilling the foundation. (E) Streets should be cleaned and swept whenever tracking of sediments deeur and before sites are left idle for weekends and holidays. If streets are not clean, the city will arrange for a private contractor to clean streets and will bill the charges accordingly, (F) Interior lots shall be sodded from the roadside edge or the unpaved right of way to the back corners of the furthermost building, (G) Corner lots with two (2) sides of the lot adjacent to the street; in the front yard, sod shall be installed from the roadside edge or the unpaved right of way in the front of the building to the back corners of the furthermost building. Sod shall also be installed on the street side yard within the boulevard commencing at the rear corner of the building to the rear lot line, (H) All areas that required silt fences during construction and along any portions of the lot that adjoin drainage easements shall be sodded, Any remaining disturbed areas not mentioned above may be seeded. Silt fences must be maintained throughout the construction period until new vegetation is established, (I) Turf slopes in excess of three to one (3: I) are prohibited, (1) The required sod must be in place before a final certificate of occapancy '.'fill be issued, If the sod is not in place and occupancy is requested by the builder, a temporary certificate of occupancy may be issued, The builder/homeovmer is required to install sod within sixty (60) days after the temporary certificate of occupancy is issued. It is the responsibility of the ovmer to establish twf in the area where sod is not required, .\ final eertificate of occupancy vAll be issued only after the turf has been established, The remaining areas of a lot that are not required to have turf established prior to issuance of the final certificate of oeeupaney should be established with turf within sixty (60) days after the issuance of the fmal certifieate of occupancy. (K) In periods of adverse weather eonditions between approximately October 16 and l\.pril 30, a temporary certificate of oecupancy m.ay be issued, but the installation of sod must be completed on or before July 1. ill ~ The city shall collect a surety for the as built certificate of survey and turf establishment before any building permit is issued, The surety is returned when the as built certificate of survey, sod and seed requirements have been approved. If these requirements are not met, the surety will be used to either complete the grading of the lot consistent with the grading plan and/or complete the installation ofthe sod and seed, (Ord. 002-470, 2-19-2002) SECTION 2. Effective Date. This ordinance shall be effective upon its passage and publication according to law, ADOPTED thts.,20th day of September, 2010. CITY OF FARMINGTON By: , ~~ By: ATTEST: SEAL Approved as to form th~ay o~; 2010, By9~<~ City Attorney Published in the Farmington Independent the day of ,2010. CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA SUMMARY OF ORDINANCE NO. 010-628 AN ORDINANCE AMENDING SECTION 11-4-5 OF THE SUBDIVISION CODE CONCERNING EROSION CONTROL AND TURF ESTABLISHMENT NOTICE IS HEREBY GIVEN that, on September 20,2010, Ordinance No. 010-628 was adopted by the City Council of the City of Farmington, Minnesota. NOTICE IS FURTHER GIVEN that, because of the lengthy nature of Ordinance No. 010-628, the following summary of the ordinance has been prepared for publication, NOTICE IS FURTHER GIVEN that the Section 11-4-5 amendment changes the Erosion Control and Turf Establishment requirements, The updates are revised to reflect current procedures for installation of sod on new construction, A printed copy of the whole ordinance is available for inspection by any person during the City's regular office hours, The ordinance is also available on the city's internet home page. APPROVED for publication by the City Council of the City of Farmington this 20th day of September, 2010. CITY OF FARMINGTON By: By: SEAL Approved as to form thi~~ day of September, 2010, Published in the Farmington Independent the3dJaay of l.~ ~-~&LJ .2010. 142593v2 1 ~/ City of Farmington 430 Third Street Fa.mlington, Minncsota 651.280.6800. Fax 651.280.6899 W\....w.ci.tarmil1gt.m.mn..u... TO: Mayor, CounciImembers and City Administrator FROM: Teresa Walters, Finance Director SUBJECT: August Financial Report DATE: September 20,2010 Enclosed is the financial report for the months of January through August 2010. The report shows revenues and expenditures for 67% ofthe year. Below is a list of any discrepancies along with reasons for the variance. If you have any questions prior to the meeting, please e-mail me at twalters@ci.farmington.mn.us or call me at 651-280-6880. General Fund Revenues Property taxes Amount Received 51.2% Licenses 74.12% Permits 105.26% Fines 39.7% Intergovernmental 51.61% 36 Reason for Variance We received the frrst half of our property taxes in June and July. The balance will be received in December. License revenue is higher due to the payment of the third quarter liquor licenses. The majority of this line item is building permit revenue. Bldg permit revenue is at 112.9% of the budget. YTD total building permit revenue is $254,036 compared to the annual budget of $225,000. Court Fines are $60,303 below the projected budget of$lOO,OOO. We have not received any Police or Fire Aid. This normally does not show up until Fall. We have received 98.9% of our State Aid Maintenance. Charges for services 39.52% Franchise Fees 100.00% Investment Interest 36.43% Miscellaneous 78.86% Expenditures Historical Preservation 149.86% Emergency Management 365.31% Fire charges are not received until the end of the year. Police service charges are at 40%. Payment received. Interest rates are extremely low right now. Housing market analysts and economists are predicting that the base interest rate will remain low until the end of2011. The two year treasury rate is 1'2% . Miscellaneous includes Rental income (for picnic shelters, conference rooms, and our A1lina Health Lease payment). The ALF payment is also included. This is the only ALF payment we will receive this year. The Historic Preservation is $3,829 over budget. We are anticipating additional grant money (a matching grant) for consultant services. This revenue should be received by October 2010. Emergency management has a $4,900 annual budget. The storm in August resulted in expenditures (salaries and benefrts) in the amount of$16,672. Overall General Fund Revenues are at 52.85% of the budget. This is below budget; however, some ofthe revenues (police and frre) do not come in until later in the year. Expenditures look good since they are slightly lower than anticipated at 61.3% of the budget. 37 Snecial Revenue Funds: The Special Revenue funds are established to account for specific revenue sources (grants) or to fmance a specific activity. Assistance may be needed from the general fund or another designated fund to operate. The Recreation and Ice Arena funds continue to operate with a deficit fund balance. A transfer will need to be completed to bring up the balance if it is not positive by year-end. The actual deficit balance in the Recreation Funds at the end of2009 was ($229,946). The actual deficit in the Ice Arena Fund was ($178,985). *** As of August, 2010, the Recreation Deficit has increased to ($239,976). The Arena Deficit has increased to ($256,686). Revenues Amount Received EDA 221.06% Park Improvement 191.99% Pool 91.04% Expenditures Rambling River Center Renovation 296.61 % 38 Reason for Variance Revenues are $15,738 over budget. We received $5,000 earnest money toward the sale of the Old Liquor Store and another $2,580 for a federal grant. The Federal grant is a reimbursement from the Community Development Block Grant funding (CDBG) for a business development grant previously awarded. We also received a grant from Dakota Electric earlier in the year. This is the last year we will receive this grant. Building Permit Revenues and Special assessments go into this fund. The majority of pool revenues have been received for the year. Renovation costs. In June expenditures included $21,500 for a heating! Air condition system. In August another $24,000 was spent. We anticipate receiving a Community Development Block Grant to help off-set some of the costs. Swimming Pool 82.81 % The majority of the pool expenses have been spent for the year. Remaining expenses include salaries and supplies needed to close the pool as well as utility costs from the prior month. Enternrise funds: The Enterprise funds are self supporting and do not need fmancial assistance from the General fund. Liquor There were unexpected equipment repairs of$3055 in August and a transfer out to the General Fund for $30,525. Total year to date transfers to the General Fund from Liquor Operations is $94,200. It is not unusual for August sales to dip slightly in comparison to July. Weather conditions and the number of Fridays and Saturdays in a given month also playa role in monthly sales from one year to the next. In 2009 there were five Saturdays compared to four in 2010. Any given Saturday could mean a difference of over $10,000 in sales. Liquor Operations Staff is continually making every effort to reduce costs through appropriate purchasing, staff schedules and other controllable expenses. As a result of the equipment repairs, transfer and factors causing the dip in sales, expenditures exceeded revenues by $66,153 in August. Overall the Sewer. Solid Waste. Storm Water. and Water enterprise revenues are exceeding expenditures for the year. Street Light Utility: Street light utility revenues were received for the fIrst time in March 2010. Revenues exceeded expenditures this month. This reduced the negative fund balance bringing it from a negative $31,977 in July to a negative $25,488 in August. Revenues are currently two months behind due to the billing cycle. We are watching this for the year; we hope to break even at year-end. Ifwe do not break even, a transfer may be needed from the General Fund. Granh: The graph shows that overall 2010 YTD fund balance exceeds 2009's fund balance at this time. The City's goal should be to maintain not only a positive fund balance throughout the year, but also a fund balance that falls within the State Auditor's recommended 35-50%. Our current fund balance was at 24.9% at the end of2009, the highest point of the year. A healthy fund balance is needed to operate during the year because our main source of revenue only comes twice per year. The fund balance should also be utilized to assist other funds when operations revenue is not as high as anticipated as we have seen with the Rambling River Center and Ice Arena funds. As special revenue funds, these funds need the support of the general fund in order to operate. The Enterprise funds should ensure fees are adequate to cover costs. The Street light Utility fees are currently not covering the costs needed to operate the utility. Our hope is that it will be very close by the end of the year. 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S! :\l o ci N C\I .q '" '" '" ~ III ... ~ g o on ~ ~ J I II d U C\I ...... (J) I"- ~ 0 0 0 0 c: 0 N N 0 u:: 0 0 - ..r:: ~ Cl Ul E c: 11l C') g E u '<t en "tl 0 CO m ... ~ 0 '" ns l: 0 0 -g :J N N '" LL u.. 0 . - (ij 0 ... >- CIl ~ l: CIl U l!) C\I 0 0 0 crJ <F> crJ CO CO M M It) It) l"- I"- M M <F> ff{ a:>ueles pun.::! c o '" c .~ u. '0 >- (} 7' J City of Farmington 430 Third Street Farmington, Minnesota 651.463.7111 . Fall 651.463.2591 www.ci.tarmiTlgton.nm.LL.. TO: Mayor, Councilmembers, City Administrator - FROM: Lisa Shadick, Administrative Services Director SUBJECT: On-Sale 3.2 Beer License- The Ugly Mug DATE: September 20,2010 DISCUSSION D&K Properties of Rosemount, dba The Ugly Mug, located at 18450 Pilot Knob Road, has submitted an application for an On-Sale 3.2 Beer License. The required fees have also been received and the application has been reviewed by the Farmington Police Department, BUDGET IMPACT Fees are included in the revenue estimates of the 2010 budget. 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Fax 651.280.6899 www.ci.tarmil1gttm.mn.LL.l TO: Mayor, Council Members, City Administrator FROM: Lee Smick, City Planner AICP, CNU SUBJECT: Adopt Resolution - Amending Schwiness Retail Center (Farmington Marketplace) Planned Unit Development Agreement - Planning DATE: September 20, 2010 INTRODUCTION Jon Einess, owner of the Schwiness Retail Center otherwise known as Farmington Marketplace (Ugly Mug, Pilot Knob Pizzeria) is seeking an amendment to the original PUD agreement (Ex. A) for the Schwiness Retail Center. A resolution is attached as Exhibit A along with the original PUD Agreement attached as Exhibit B and the revised PUD Agreement attached as Exhibit C. DISCUSSION Mr. Einess is proposing the following amendments to the PUD: Underlined items are proposed amendments while strikeouts are proposed deletions from the existing agreement. 1. Building Area - The two buildings are not to exceed a footprint of 17,531 17.734 squar~ feet. . A 100 square foot vestibule may be installed on the south building at the former Movie Gallery space. Subway has already installed a 100 square foot vestibule on the north building. This amendment would bring the Subway vestibule into compliance. 2. Parking - A minimum of ~ 117 standard parking stalls and a minimum of 3 handicap accessible parking stalls will be maintained and used for commercial use by customers, vendors and other visitors to the Subject Property. A minimum of 9 parking stalls may be removed on the west side ofthe south building and 1 stall may be removed on the north side of the south building adiacent to the most easterly leased space. The City and the Developer agree to a parking setback of8 feet from the right of way line on the west side of the Subject Property. 65 . A Daycare is proposed on the west side of the south building, in the former Movie Gallery space. The daycare will install a maximum 3,500 square foot playground adjacent to the most westerly leased space on the south building and the construction of the playground may require the need to remove 8-9 parking stalls. Dependent upon the uses in the Farmington Marketplace center, required parking for the area is between 88 to 100 parking spaces. 3. Playground - A playground may be constructed near the south building adiacent to the westerly leased space at a maximum of 3.500 square feet. This playground will be provided with safety features such as bollards. landscaping. and non-climbable fencing. The Property Owner may close the west drive along the South Building to accommodate the playground. . At the September 14, 2010 Planning Commission meeting, the Commissioners requested that the playground be provided with bollards (painted yellow and includes reflective tape as well as signs stating "No Thru Traffic" located on the north and south side of the playground) and landscaping (9 dense shrubs to be placed on west side of playground) as well as non-climbable fencing to ensure safety of the area (Exhibit D). 4. Outdoor Dining - Outdoor dining may be installed adiacent to the restaurants in the Farmington Marketplace. . Outdoor dining is allowed where approved through a PUD amendment. This amendment would bring the Ugly Mug outside dining area into compliance. 5. Zoning - The following land uses are permitted under this Agreement and any other uses not included below will require one of the following: (i) an amendment to this Agreement approved by the City Council; or (ii) a conditional use permit authorized by the Board of Adjustment pursuant to the conditional use permit process and city Code for the B-1 Limited Business District Zoning Classification: b. Restaurants and fast food restaurants so long as the fast food restaurants are not free standing, are tenants in the shopping center on the Subject Property, and do not have a drive through lane. Outside dining is allowed where approved through a PUD Amendment. . Outdoor dining is currently occurring adjacent to the Ugly Mug. Additional outdoor dining has been requested by Pilot Knob Pizzeria adjacent to its leased space in the south building. 1. Commercial Child Daycare Centers 6. Notices. Required notices to Developer shall be in writing, and shall be either hand- delivered to Developer, its employees or agents, or mailed to Schwiness, LLC c/o Jon Einess by registered mail at the following address: 525 North 3rd Street #312, Minneapolis, MN 66 55401. Notices to the City shall be in writing and shall be either hand-delivered to the City Administrator, or mailed to the City by registered mail in care of the City Administrator at the following address: Farmington City Hall, 430 Third Street. Farmington, Minnesota 55024. . This is a text amendment providing the correct addresses of the property owner and the City of Farmington. ACTION REOUESTED Adopt a resolution amending the original PUD of the Schwiness Retail Center to incorporate the following items: 1. Building Area - The two buildings are not to exceed a footprint of 17,531 17.734 square feet. . A 100 square foot vestibule may be installed on the south building at the former Movie Gallery space. Subway has already installed a 100 square foot vestibule on the north building. This amendment would bring the Subway vestibule into compliance. 2. Parking - A minimum of ~ 117 standard parking stalls and a minimum of 3 handicap accessible parking stalls will be maintained and used for commercial use by customers, vendors and other visitors to the Subject Property. A minimum of 9 parking stalls may be removed on the west side of the south building and 1 stall may be removed on the north side of the south building adjacent to the most easterly leased space. The City and the Developer agree to a parking setback of8 feet from the right of way line on the west side of the Subject Property. . A Daycare is proposed on the west side ofthe south building, in the former Movie Gallery space. The daycare will install a maximum 3,500 square foot playground adjacent to the most westerly leased space on the south building and the construction of the playground may require the need to remove 8-9 parking stalls. Dependent upon the uses in the Farmington Marketplace center, required parking for the area is between 88 to 100 parking spaces. 3. Playground - A playground may be constructed near the south building adiacent to the westerly leased space at a maximum of 3.500 square feet. This playground will be provided with safety features such as bollards. landscaping. and non-climbable fencing. . At the September 14, 2010 Planning Commission meeting, the Commissioners requested that the playground be provided with bollards and landscaping as well as non-climbable fencing to ensure safety of the area. 4. Outdoor Dining - Outdoor dining may be installed adiacent to the restaurants in the Farmington Marketplace. 67 . Outdoor dining is allowed where approved through a PUD amendment. This amendment would bring the Ugly Mug outside dining area into compliance. 5. Zoning - The following land uses are permitted under this Agreement and any other uses not included below will require one of the following: (i) an amendment to this Agreement approved by the City Council; or (ii) a conditional use permit authorized by the Board of Adjustment pursuant to the conditional use permit process and city Code for the B-1 Limited Business District Zoning Classification: b. Restaurants and fast food restaurants so long as the fast food restaurants are not free standing, are tenants in the shopping center on the Subject Property, and do not have a drive through lane. Outside dining is allowed where approved through a PUD Amendment. . Outdoor dining is currently occurring adjacent to the Ugly Mug. Additional outdoor dining has been requested by Pilot Knob Pizzeria adjacent to its leased space in the south building. 1. Commercial Child Daycare Centers 6. Notices. Required notices to Developer shall be in writing, and shall be either hand-delivered to Developer, its employees or agents, or mailed to Schwiness, LLC c/o Jon Einess by registered mail at the following address: 525 North 3rd Street #312. Minneapolis, MN 55401. Notices to the City shall be in writing and shall be either hand-delivered to the City Administrator, or mailed to the City by registered mail in care ofthe City Administrator at the following address: Farmington City Hall, 430 Third Street, Farmington, Minnesota 55024. Respectfully submitted, Lee Smick, City Planner AICP, CNU 68 RESOLUTION NO. R53-10 AMENDING THE SCHWlNESS RETAIL CENTER PUD AGREEMENT Pursuant to due call and notice thereof, a regular meeting ofthe City Council of the City of Farmington, Minnesota, was held in the Council Chambers of said City on the 20th day of September, 2010 at 7:00 P,M, Members Present: Members Absent: Larson, Donnelly, Fogarty, May, Wilson None Member Fogarty introduced and Member Wilson seconded the following: WHEREAS, a public hearing of the Planning Commission was held on the 14th day of September, 2010 after notice of the same was published in the official newspaper of the City and proper notice sent to surrounding property owners, and WHEREAS, the Planning Commission recommended approval of the PUD Amendments on the 14th of September, 2010; NOW, THEREFORE, BE IT RESOLVED that the Schwiness Retail Center PUD Agreement be amended with the following conditions: 1, Building Area - The two buildings are not to exceed a footprint of 17,734 square feet. 2. Parking - A minimum of 117 standard parking stalls and a minimum of 3 handicap accessible parking stalls will be maintained and used for commercial use by customers, vendors and other visitors to the Subject Property, A minimum of9 parking stalls may be removed on the west side of the south building and 1 stall may be removed on the north side of the south building adjacent to the most easterly leased space. The City and the Developer agree to a parking setback of 8 feet from the right of way line on the west side of the Subject Property, 3, Playground - A playground may be constructed near the south building adjacent to the westerly leased space at a maximum of 3,500 square feet. This playground will be provided with safety features such as bollards, latulsl_pWb, and non-climbable fencing. 4, Outdoor Dining - Outdoor dining may be installed adjacent to the restaurants in the Farmington Marketplace. 5. Zoning - The following land uses are permitted under this Agreement and any other uses not included below will require one of the following: (i) an amendment to this Agreement approved by the City Council; or (ii) a conditional use permit authorized by the Board of Adjustment pursuant to the conditional use permit process and city Code for the B-1 Limited Business District Zoning Classification: b. Restaurants and fast food restaurants so long as the fast food restaurants are not free standing, are tenants in the shopping center on the Subject Property, and do not have a drive through lane. Outside dining is allowed where approved through a PUD Amendment. I. Commercial Child Daycare Centers 6. Notices. Required notices to Developer shall be in writing, and shall be either hand-delivered to Developer, its employees or agents, or mailed to Schwiness, LLC c/o Jon Einess by registered mail at the following address: 525 North 3rd Street #312, Minneapolis, MN 55401. Notices to the City shall be in writing and shall be either hand-delivered to the City Administrator, or mailed to the City by registered mail in care of the City Administrator at the following address: Farmington City Hall, 430 Third Street, Farmington, Minnesota 55024. This resolution adopted by recorded vote of the Farmington City Council in open session on the 20th of September, 20 I O. ~~~- Mayor Attested to the ~ay of September, 20 I , Exhibit C AMENDMENT TO SCHWINESS RETAIL CENTER PUD AGREEMENT This Amendment Number One to the Planned Unit Development Agreement ("Amendment") dated , 2010, by and between the CITY OF FARMINGTON, a Minnesota municipal corporation (referred to herein as "City"), and Schwiness, LLC, a Limited Liability Company (referred to herein as "Developer"), amends the Planned Unit Development Agreement between City and Developer dated February 19, 2002 (''PUD Agreement"), The PUD Agreement, as amended by the Amendment, is referred to herein as the "Agreement". Capitalized terms have the same meeting as in the PUD Agreement, except as otherwise provided in this Amendment. RECITALS A. Developer owns property situated in the County of Dakota, State of Minnesota, and legally described as Lots 3 & 4, Block 1, Dakota County Estates 9th Addition (collectively referred to herein as "Subject Property"). B. The Subject Property was rezoned from R-l to Planned Unit Development as part of Ordinance 086-176, adopted the 18th day of February, 1986. C. By agreement dated September 9, 1994, the City approved a Development Contract for the Subject Property (''Development Contract"). D. By Planned Unit Development Agreement dated February 19, 2002, the City and Developer terminated the Development Agreement and agreed to terms and conditions for the development of Farmington Marketplace Shopping Center on the Subject Property. E. The Parties wish to amend the PUD Agreement as set forth herein. NOW, THEREFORE, the parties agree as follows: 1. Terms of Site Development. Section 5 (A) and Section 5 (C) of the PUD Agreement are amended to read as follows: A. Building Area - The two buildings are not to exceed a footprint of 17,734 square feet. B. Parking - A minimum of 117 standard parking stalls and a minimum of3 handicap accessible parking stall will be maintained and used for commercial use by customers, vendors and other visitors to the Subject Property. A minimum of 9 parking stalls may be removed on the west side of the south building and 1 stall may be removed on the north side of the south building adjacent to the most easterly leased space, The City and the Developer agree to a parking setback of 8 feet from the right of way line on the west side of the Subject Property. 98382 1 71 C. Playground - A playground may be constructed near the south building adjacent to the westerly leased space at a maximum of 3,500 square feet. This playground will be provided with safety features such as bollards, f&B888a,iBg, and non-climbable fencing. The Property Owner may close the west drive along the South Building to accommodate the playground. D. Outdoor Dining - Outdoor dining may be installed adjacent to the restaurants in the Farmington Marketplace. 2. Zoning. The fo llowing land uses are permitted under this Agreement and any other uses not included below will require one of the following: (i) an amendment to this Agreement approved by the City Council; or (ll) a conditional use permit authorized by the Board of Adjustment pursuant to the conditional use permit process and city Code for the B-1 Limited Business District Zoning Classification: a. Retail Facilities b. Restaurants and fast food restaurants so long as the fast food restaurants are not free standing, are tenants in the shopping center on the Subject Property, and do not have a drive through lane. Outside dining is allowed where approved through a PUD Amendment. c. Coffee Shops d. Health Club e. Offices f. Personal and Professional Services including, without limitation, fmancial services. g. Personal Health & Beauty Services h. Animal Clinics i. Convenience Store, without gas j. Automobile service and repair k. Clinics 1. Commercial Child Daycare Centers 3. Notices. Required notices to Developer shall be in writing, and shall be either hand-delivered to Developer, its employees or agents, or mailed to Schwiness, LLC c/o Jon Einess by registered mail at the following address: 525 North 3rd Street #312, Minneapolis, MN 55401. Notices to the City shall be in writing and shall be either hand-delivered to the City Administrator, or mailed to the City by registered mail in care of the City Administrator at the following address: Farmington City Hal~ 430 Third Street, Farmington, Minnesota 55024. Except as otherwise provided herein, the terms of the PUD Agreement are unchanged. 98382 2 72 CITY OF FARMINGTON By: Todd Larson, Mayor And Peter Herlofsky, Jr., City Administrator Schwiness LLC By: Jon Einess Its: Chief Manager STATE OF MINNESOTA ) ( ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of , 20_, by Todd Larson and Peter Herlofsky, Jr., the Mayor and City Administrator of the City of Farmington, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public STATE OF MINNESOTA ) ( ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of ,20-, by , the of , a , on behalf of said Notary Public THIS INSTRUMENT WAS DRAFTED BY: 98382 3 73 ex.., DRAFf DRAFT DRAFT PLANNED UNIT DEVELOPMENT AGREEMENT AGREEMENT dated , 2002, by and between the CITY OF FARMINGTON, a Minnesota municipal corporation (referred to herein as "Cityll), and Schwiness, LLC, a Minnesota Limited Liability Corporation (referred to herein as IIDeveloperll). RECITALS A. Developer owns property situa~d in the County of Dakota, State of Minnesota, and legally described as Lot 4, Block 1, Dakota County Estates 9th Addition and holds an option to purchase property situated in the County of Dakota, State of Minnesota, and lega1ly described as L~t 3, Block 1, Dakota County Estates 9th Addition.(collectively referred to herein as "Subject Property"). , " ... ", 'I' ".. . '~ B., The Subject~op~rty was rez~ned from R-l to Planned Unit:Development as part of .. " ,. . . l' . Ordinance 086-176"adopted the, \ 8th day of February, 1986., ....'t. . . ", . '.1.' " . ,'..~. c. By agreement dated September 9, 1994, the City approved a Development Contract for the Subject Property ("Development Contract"). NOW, THEREFORE, the parties agree as follows: 1. Request for Approval. Developer has asked the City to approve a Final 'Site Plan for the Subject Property (also referred to irl. this Agreement as the "Site Plan"). 2. Conditions of Approval; Conditions of Agreement. The City hereby approves the Site Plan for the Subject Property subject to the conditions set forth in this Agreement, on condition that Developer enters into this Agreement. The Developer owns that portion of the 98382 1 74 ,e:?"~ DRAFT . DRAFT DRAFT Subject Property described as Lot 4, Block I, Dakota County Estates 9th Addition, It is the Developer's intent to exercise the Developer's option to purchase that portion of the Subject Property described as.Lot 3, Block 1, Dakota County Estates 9th Addition upon City Council approval of the Site Plan and this Agreement. This Agreement shall not become effective until and unless Developer obt$s ownership of both lots constituting the Subject Property. 3. Effect of Planned Unit Development Approval. For a period of three (3) years from and after the date of this Agreement, no amendments to the City's Comprehensive Plan or official controls shall apply to or affect the use, development density, lot size, lot layout, or dedications of th~ development unless required by state or federal law or agreed to in writing by the City l)lld the Developer. Th~eafter, notwithstanding anything within this Agreement to the contrary, and subject to non-conforming use rights and to the extent permitted by State, and . . " . Federal Law, the. qty may require C9mpliance.;.with; any amendments. t.o the City's..; Comprehensive Guide. Plan, Zoning: Ordinance, official. controls, platting Qr dedication ., .requirements ena~te4. after. the date of this Agreement.. :. ~. . . !'.:' 4. . Pl.ans. The City grants approval to the development .of the Site Plan in accordance with the following . plans, which are on file at Farmington City Hall. The plans are not attached hereto. lfthe plans vary from the written terms of this Agreement, the written terms shall control. The plans are: Plan A ~ Site Plan Plan B - Elevation Drawings; Floor Plan Plan C - Water Main Plan Plan D - GradinglDrainagelUtilities Plan Plan.E - Landscape Plan 98382 2 75 " - . .': .. '~". "... '. "....:t . " ',:... .. :. 0/73 DRAFT 5. DRAFT Terms. of Site Development. DRAFT The Subject Property shall conform to the following ~um requirements: A. Building Area - The two buildings are not to exceed a footprint of 17,534 square feet. B. Building DesignlMaterials - The building design and materials will be consistent with that of the site p'lan and building details approved by the City Council. A minimum of 10% of the total building face will be made up of brick, the remaining 90% will be made up of impregnated color rock faced concrete block, stucco, stone and glass. . ...... C. P.ar~g,- A minimum of 127 standard parking stalls and a minimum of. 3 :.. 'OJ,':o . handicap accessible parking stalls will be maintained and used. for, commercial ., . . . . '. use by customers, vendors and other visitors to the Subject Property, The City . . i,and the.Developer agree to a parking setback of 8 fee~ from the right of way.. . ; ,.,. .. " ," .. .",". '." . line. on the west side of the Subject Property, . " -' .:',", I. .,' Ilu' '0... D. Signage - Both wall and pylon signage will be permitted and not to exceed the follqwing standards: i. Wall signage ~ For each building, the total wall signage cannot exceed 10% of the following: the sum of the gross area of the two fr<?nt facades of the building. In no event shall. the total wall signage exceed 200 square feet per building. There is no size limitation on individual signs so long as the above-referenced limitations are met. ii. Pylon signage - Two pylon signs not to exceed 150 square feet for each sign nor to exceed twenty-six (26) feet in height. Only one (1) 98382 3 76 .~.'r DRAFT DRAFT DRAFT . pylon sign per lot. The minimum required setback.for pylon signage is approved to be reduced from the required fifty (SO) foot setback to ten (10) feet as measured from the C.S.A.H. 31 right-of-way easement or . twenty-five (25) feet from the actual west property line. This signage does not include any necessary directional or parking signage. E. Landscaping - Except as otherwise specifically provided herein, the Site Plan will meet or exceed the minimum requirements of the City's Landscape Ordinance.. . F. Si.dewalk - The Developer will be responsible for the construction of the sidewalk along English Avenue, completing the connection between the two . . ,. I '..: existing sidewalks. ... .' . . G. ,Trash Enclosures - The Developer will provide. two (2).trash enclosure's (one, for each building, on the Subject Property) that will. be constructed with the similar. materials as proposed for.the main structure. ;" :: . ." . . . . ~ " l' H. Side Yar4 Setback - The City and Developer agree that the side yard setback' ." requireme~ts' in the City Code shall not apply with respect to the 10t line separating Lot 3 Block 1, Dakota County Estates 9th Addition and Lot 4 Block 1, Dakota County Estates 9th Addition. 6. Zoning. The following land uses are' permitted under this Agreement and any other uses not included below will require one of the following: (i) an amendment to this Agreement approved by the , . City Council; or (ll) a conditional use pennit authorized by the Board of Adjustment pursuant to 98382 4 77 0175' DRAFT DRAFT. DRAFT the conditional use permit process and City Code for the B-1 Limited Business District Zoning Classification. .a. Retail Facilities b. Restaurants and fast food restaurants so long as the fast food restaurants are not free standing, are tenants in the shopping center on the Subject Property, and do not have a drive through lane. c. Coffee Shops d.. Health Club e. Offices ;f... PersOnal and Professional 'Services, including financial sewices: ....., :..,', ...... ;" g._ Personal Health & Beauty Services ~ .." .. . ..:~_., .. ',' .':. ,i .1 ,'. hi . Animal,Clinios r.:'" .,' ..i " ~';.. ; i.. .... .:. . . .. \. .... .f" \, . " ". .,,;.,,' j.. , Convenience Store, without gas . ~. '\ " :'..1... . . ~ ," "if se:'.' . . '.' . I '" . ~.! . j. Automobile service and repair '... t.... ..... . '.' k. Clinics 7. . Compliance with Permit and Licenses. It is the responsibility of the Developer to obtain and comply with all necessary approvals, permits, and licenSes from the City of Farmington, Dakota County, Minnesota Pollution Control Agency, Minnesota Department of Health, and any other regulatory agency affected by or having jurisdiction over the site. All costs incurred to ob~ain said approvals, permits, and licenses shall be the responsibility of the Developer. 8. Compliance with Laws and Regulations. Developer represents to the City that the proposed development complies wi~ all applicable City, County, Metropolitan, State, and 98382 5 78 01 /~~ I .' j .. . , I,:, DRAFT DRAFT DRAFT Federal laws and regulations, including but not limited to ~ of the Fannington City Code, planned unit development ordinance, subdivision ordinances, zoning ordinances, and enviromnental regulations in effect during the course of this development or Agreement. Developer agrees to comply with such laws and regulations, 9. Enforcement. Developer shall reimbW'Se the City for reasonable costs incurred in the enforcement of this Agreement, including reasonable engineering and attorney's fees. Developer shall pay in full all bills submitted to it for the above-referenced costs by the City within sixty (60) days after receipt. Bills not paid within sixty (60) days shall be subject to an eight-percent (8%) per annum interest charge. ". )' 10. of :',~Miscellaneous. . \' ~. . : A. Breach of any .material term of this Agreement by Developer ;shall. be. grounds.for;d~nial of building permits. .:" .. '. I.' . .:." ,'. ....B. . If any material. portion, section, subsection, .sentence; 0lause, .paragraph, .or phrase of this Planned. Unit Development Agreement is for .any reason held invalid as !i' result of .. a challenge brought by Developer, their agents 'or assigns, the City may, at its option, declare the entire Agreement null and void and approval of the final planned unit development shall thereby be revoked. C. The action or inaction of any party shall not constitute a waiver or amendment to the provisions of this Agreement. To be binding, amendments or waivers shall be in writing, signed by the parties, and approved by written resolution of the City Council. The , . City's failure to promptly take legal action to enforce this Agreement after expiration of time in which the work is to be completed shall not be a waiver or release. 98382 . 6 79 . .... I I I I I I I I I I I I I I .: . . t: 1~1' II .l~". . '.,...... t...." "~ . d/7'/ D. . DRAFT DRAFT This Agreement shall run with the land and shall be recorded in the DRAFT Dakota County Recorder's office. The Developm~nt Contract dated September 9, .1994, is hereby terminated with respect to the Subject Property as of the date of this Agreement. The parties shall file a release of such Development Contract covering the Subject Property within a reasonable time after. the date of this Agreement. E, This Agreement shall be binding upon the parties, their heirs, successors, or assigns, as the case may be. . F. . Third parties shall have no recourse against the City or Developer under this Agreement. . " G, ' Except as otherwise specified herein, Developer . shall pay all costs,;' ". '.. '.' incurred' by Developer and the reasonable costs incurred by, the., City: in conjunction with, the.. .. .' ..;: '.. ~ :. development as set forth in the Site Plan, including but .not limited to Soil and Water.;. ..' ....;'...;1.,: . :~ . ..conservation District ,Charges,. legal, planning, engineering and inspection expenses incurred in.,.,' ".: .:...,. ~"'. connection..with approval:and acceptance of the Site,Plan, and,the preparation of this Agreement.~.,. '" ,'f.'::"-' 'i; H,' Each right, power or.remedy herein conferred upon the City is cumulative and in addition to every other right, power or remedy, express or implied, now or hereafter arising, available to City, at law or in equity, or under any other agreement, and each and every right, power and remedy herein set forth or otherwise so existing may be exercised from time to time as often and in such order as may be deemed expedient by the City and shall not be a waiver of the right to exercise at any time thereafter any other right, power or remedy. 11. Notices. Required notices to Developer shall be in writing, and shall be either hand-delivered to Developer, its employees or agents, or mailed to Schwiness, LLC c/o Jon Einess by registered mail at the following address: 708 North First Street, #423, Minneapolis, 98382 .7 .80 t5l '"JttrI.' '. ' DRAFT DRAFT DRAFT MN 55401. Notices to the City shall be in writing and shall be either hand-delivered to the City Administrator, or mailed to the City by registered mail in care of the City Administrator at the following address: Farmington City HaIl, 325 Oak Street, Farmington, Minnesota 55024. CITY OF FARMINGTON By: Gerald G. Ristow, Mayor And Edward J. Shukle, City Administrator Schwiness, LLC . .' ..: L' '} . :',' . ':, . ~ .1 :",:;; i' . ....ft. " . .: . By: ',: Jon Einess , .. .: '.... . Its: Chief Manager .:. I, '.' " ,....', .0, .." . . ~.J ~ :1,' . ';;'f:~:.3'. ::..u:.~.. ....~.I ..... '.... : I ~..,:. . ".~ .... i.'. ", ~....""",,'\'c.~.tt~;:. .:, '0 ,':0 '_ f. .:. c . 98382 8 '81 ..... : . '.' 'h ;..' ..... .~ t. . J dI /~ h' ',' " I I I I I I I I I I I I I I I I I I I I DRAFT STATE OF MINNESOTA ) ( 58. COUNTY OF DAKOTA ) DRAFT DRAFT The foregoing 'instrument was acknowledged before me this . day of . 20-, by Gerald G. Ristow and Edward J. Shukle, the Mayor and City Administrator oftbe City of Farmington, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authoqty granted by its City Council. Notary Public STATE OF MINNESOTA ) ( ss. COUNTY OF ) . , The foregoing instrument was acknowledged before.me this ,20_, by . the , a . , on behalf of said day of . of t '.' ..~ ",... Notary Public THIS INSTRUMENT WAS DRAFTED BY: 98382 9 a2 .... ',' . ,... " ~ 8 ~=- : ""' ~ . tl"kGlI ON PIlST : \ ~ L....... .nn..nn._ _ _ - 39m ~'1- - ;':'-f:;' :, ~:2)'-- 30 it ~ _/- -J~ /-., < ,-,-: WCONCWALK tl~ ERcnYSTAllDARDS 8"COllCDRlVEWAY VCI. HCACCfSS "r APPROACH OVER&" a.ASS LLDRlVEWAYS" SEEC-lfORcnYPlATE# V ,_-* _ _ _ bL===-- EX ~.i/ .._ _e-; - ~------ - - - '" - - - :~ ! aC~i~tm~ ~;:;; ~~ I=":~~':' ::i~i i . 5lGN /~ // Y/A/h/ ///.'//J. J 19 I~: 7 i ::=-.-..-#// Y ~;::/C0~: J 1< :1: : ~..:: ~ //~~ _6'OIASIIR ) I I '1 I--~-' __ ,v///' =-~ :-....,1, I _ ., _=...>////// I:.=:i! i i ='" //7// /7///z7fj7ff~ ! i / '/ .//~~J ~ _ ARE: I "Ilt,PAIlI<IlIG" / I - -"'_: ;rSIClIIOIlPOST ^ ~. T '""'"r ~ ~ .... ,DC - ,\;: U6IlT - }'-----= ~' ' ~ ' : ... L E--'~ _"" " l I i.J[I~ ,~'l // ;;~;'ti'" / /1'~- _ -" 1: I ~6r ,_ L..-..,'~ 60ft Iii I c:.~LD G"" ;::: r J ~ i i I ; ,89 F AI :., ' · T : I t + ' 100ILQKN' _Ii:lll N R ", - I i I : I~ F lEV= 2D.O' ,:. ++ 11., J :. :' ~ !E -" I i II i ~J ~ ~. .\....... .... ..... I..... l' ~ .', -I' ... ....; ~.,~ +-I-~- /1: :: f--..._m.... .', . ~.1l1 /' + '. ~ ~ . . ~~=IICfOR _ I: : I _ -i- ..!... . . I : 1 : ,- 'm ,. < - -': . .~ !l' T i I ~+ -I . ~~ I . . ~ : : I I Z~' -;-:>/1 ~ I i ~ · :.r - ' .,--,- /~.. . .~~P05ED m .. I i I : I . ;. ~ .. '!. ~~lCO'IVERTo.~.~~RE i'-I . . :.---- I IlITUSIDWAll< -L_.:..tl I . 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Fax 651.280,6899 www:ci.farmingtoll.nm.L1:; TO: Mayor, Councilmembers and City Administrator FROM: Randy Distad, Parks and Recreation Director SUBJECT: Approve Purchase of Playground Equipment DATE: September 20,2010 INTRODUCTION The Rambling River Park Master Plan identifies the replacement of the existing playground equipment, DISCUSSION The Parks and Recreation Department was contacted by the Local Host Committee of the 2010 National Recreation and Park Association (NRP A) Congress about the possible purchase of playground equipment that will be displayed at the 2010 NRPA Congress in Minneapolis, In August, City staffwas notified that Playworld Systems, Inc, a playground equipment manufacturer from Pennsylvania, was interested in selling the playground equipment it will be displaying at the NRPA Congress in Minneapolis, Staff was then instructed to contact a representative about the sale of the playground equipment, which was subsequently made, Attached are the drawings of the playground equipment that Playworld Systems, Inc, will be displaying at the NRP A Congress. Information about purchasing the playground equipment was then brought to the September 8, 2010 Park and Recreation Advisory Commission (the Commission) meeting for consideration, The Commission voted unanimously to recommend to the City Council to purchase the playground equipment and designate Rambling River Park to receive the new playground equipment, The Commission based its decision to recommend to install the new equipment in Rambling River Park on the theme of the equipment being more appropriate for a community park rather than a neighborhood park, the volume of use that the playground equipment would receive in Rambling River Park and the age and condition of the existing playground equipment warranting it being replaced, Because the City won't actually purchase the playground equipment until after the NRP A Congress, there will not be time to install it in 2010 and therefore will need to be installed in 2011, The company that installs the playground equipment has offered to store the playground equipment over the winter at no cost to the City, Then, sometime in the spring or summer of 2011, it will deliver the playground equipment to Rambling River Park at no cost to the City and install it, 85 BUDGET IMPACT The table below shows the original cost and the discount that is being offered to purchase the playground equipment, Item Orbdnal Price Discounted Price Savine:s Play structure $70,000,00 $49,876,00 $20,124,00 Tax $5,005,00 $3,566,13 $1,438,87 Installation $14,000,00 $5,985,12 $8,014,88 Shippine: $876,00 $0,00 $876,00 Total $89,881.00 $59,427,25 $30,453,75 The Park Improvement Fund Balance as ofthe end of August 2010 is just slightly over $178,000, This balance will be reduced by $11,548,50 due to the approved Depot Way Arts Park Sidewalk Project, This leaves the Park Improvement Fund with a balance of$166,452, Purchasing and installing the playground equipment will then leave the Park Improvement Fund with a remaining balance of$107,025, ACTION REOUESTED By motion approve the purchase of the playground equipment from Playworld System, Inc, and have it installed in Rambling River Park in 2011. Respectfully Submitted, Randy Distad, Parks and Recreation Director cc: Park and Recreation Advisory Commission members 86 ~ ~ CII ... ~ II ... ~ c.. ~ SiIl{ 1 ~ ~ ~!; 1 ~ Z ;:1:1 -0 ~ t ....).:.. to .5 i ~= ~ ~ } ..,,g~~ d5 " ~ i ~ " ",;. ... i 1:1:' . o;n ~.....; ~t:; ...>:" G.1It1 C~ N 0:) ( Vd~N O~O(; ) 311SV~-V d~ N '"",,,9lMs PJllltMeJd pus Wl!l SIlll jO llJSSUOO U&lIIJM pe1lSQIdxe ell! \I1OIllIM JllUUSW MJe Uj pesn JO pe:lnpoJdllJ eq IOU .(ew puB ~S PJIOlMetd pull Wl!l SIlll jO AlJedoJd "4IllJ uollllJl1lluuoo u6jsep SPU. Ie 'lllqMBJp ell! uo pejOUllllJMllllIlO _tun UN.O\llllU9Wdptbe ell! jO .Ius JOj lIIUSWllJllS99W 9lIlJI1'Xlll fluJUJeIqo Uj pesn eq \OlI PJIlOllS II "11,"0 sesodmd e:>UllJ9jllJ JOj lUll9W "I pull IlJ""S '" lOll "IIIlll9P.I9MOl SPU. Iz 19^"llP89 jO lJlo.lei l\I9Uodwoo P9QSl9P "4IllUjMo\lS '_ .I9jd.moll jO ull!llod J9MOl941 jO llJIlo.le) 19^"1 J9IlPJAIPUI941 jO UIllJ6eJp e llJ JIlllep.I9MOl SPU. I~ :S3.10N NVWH03Z dlHO llV130 ~3MO~ :.\ll N.\\WO 31\fOS O~ ~ON ~ llV130 vsn S6L6-L&BH Vd '6JnQS(MSl peo~ 0JllW18 000 ~ 'OUI 'SWSJs.':S PIJOMl\Bfd :m:lS lIVJEO :aJ.W 31l.SVO-V~N _ :oNl:EI'lllld O~-Dnv-oz "tltq~~JD~.$I~ '=I'SlIUts~.o:'WO ma1l1GMAY1d h ....J W > W ....J a, <Xl i~ <Xl ~ h ~! ~! n ~n ....J W > W ....J ~ U ~!~ ~ ~ ll! I Il! ~bl ~ \( ....J j W > J ~ w ~ ~~ ....J 0 ~ 12.. :z: I J~ ~~ ::> s:; 0 0::: (!) I I I E m~ iii"i 1 ~~ I (I).... i I I I I 0 0 en - c I OJ "" c I '" Q b ~ I ! I I I co co ~~ ~~ ~~ OIl1 m~ N:' ~~ m PLAYWGRLDTM ~~~~~- ~~~ -@" @~~~ ) ...., Playworld Systems, Inc. 1000 Buffalo Road Lewlsburg, PA 17837-9795 USA DA1!: 2ll-AUG-10 SCIolI!: NOT TO SCALE DRAWN BY: CHIP ZECHMAN NRPA CASTLE STRUCTURE 2010 NRPA ;: ~ I ~ I I I I I I I I i I I IOe:!.. City of Farmington 430 Third Street I-MIllington, Minnesota 651.280.6800. Fax 651.280.6899 www,cj,tllnllingttm.TIm.u'l TO: Mayor, Councilmembers and City Administrator FROM: Randy Distad, Parks and Recreation Director SUBJECT: Approve Memorandum of Understanding with DARTS DATE: September 20,2010 INTRODUCTION The City previously approved a Memorandum of Understanding (MOD) with DARTS in 2003 for the joint use of a DARTS bus in the Farmington area, The bus purchased by DARTS in 2003 for the Farmington Area has ended its useful life, DARTS is now in the process of applying for a Federal 5310 grant to replace the bus, DISCUSSION Staff members and the City Attorney have worked with the DARTS organization to create a MOD for the application for the Federal grant, Should DARTS be approved for a Federal grant to purchase a new bus, the City would then enter into a rental agreement with DARTS for the City's use of the bus for Rambling River Center programs, Attached is the MOU that has been created, The MOU will need to be approved by the City Council prior to the grant application being submitted by DARTS in October, The MOU identifies the costs and in-kind services that the City will be responsible for should the grant application be approved and the bus purchased, The cost of the new bus is approximately $66,000 and the entire cost of the bus will be covered by the Federal grant, The bus purchased in 2003 that will be replaced will serve as the back up bus for the Farmington area should the new bus not be available due to maintenance issues, BUDGET IMPACT Under the current MOU with DARTS, the following occurs: · the City pays to DARTS $200 per quarter to cover a portion of the cost ofthe insurance DARTS carries on the bus · the City pays $150 per quarter that helps cover a portion of the bus operational costs in exchange for the City having sole use of the bus every Friday during the calendar year for Rambling River Center programs · the City allows the bus to be stored in the Rambling River Center's garage as an in-kind donation to DARTS Under the new MOU the following will occur: · the City will pay to use the bus on the second and fourth Friday of each month at $35 per time for a total cost of$70 per month to cover a portion of the bus operational costs, which equates to $210 per quarter 90 · insurance on the bus will be carried by the City during its Rambling River Center program use and will be addressed in the rental agreement that will be created should DARTS receive the Federal grant · per a discussion with the City's insurance representative, the City has a provision in its existing vehicle insurance policy to cover rental of vehicles, so there shouldn't be an additional cost for insurance · the City will continue to provide storage of the bus at the Rambling River Center garage as an in-kind donation to DARTS The cost for the City to use the DARTS bus will decrease from the previous MOD, Rather than paying $350 per quarter to DARTS under the old MOD, the City will pay $210 per quarter to DARTS under the new MOD, ACTION REOUESTED By motion approve the MOD with DARTS, Respectfully Submitted, Randy Distad, Parks and Recreation Director 91 MEMO~UMOFmrnE~TMIDmG DARTS and City of Farmington (the City) A. DARTS will provide gap ridership service coverage between ADA and non-ADA service in Farmington and the surrounding areas using the 5310 vehicle, B, Operational Costs: 1) Maintenance: DARTS will perform all maintenance on the 5310 vehicle and will be at DARTS expense, All maintenance and repairs will be performed at the DARTS Vehicle Maintenance Service (VMS) facility in West St, Paul. The City will follow the approved pre-trip inspection and will complete the maintenance log (including recording the mileage, time, and fuel) on days the 5310 vehicle is used by the City, Any towing outside of Dakota County on Fridays (the scheduled day for exclusive use by the Rambling River Center) is the responsibility ofthe City, 2) Dispatching, Ride Takers, Scheduling and Administrative Work: DARTS will be responsible for all such duties and tasks needed to perform the daily operations of the unit in gap responsive service to the community, 3) Gas: The City will refuel and assume responsibility for payment of all gas used whenever it uses the 5310 vehicle, 4) Insurance: DARTS will be the listed owner ofthe 5310 vehicle, DARTS and the City will enter into a lease/rental agreement for the bus should the vehicle be approved whereby the City will maintain insurance coverage ofthe vehicle during its use and in such amounts satisfactory to DARTS, The City will be required to present a Certificate oflnsurance with at least a 10 day cancellation notice to DARTS, A current version of such Certificate oflnsurance must either be on file with DARTS, or be presented to DARTS prior to the execution of a formal lease for use of the vehicle, DARTS must be listed on such Certificate of Insurance as an additional insured. All claims (including bodily injury, property damage, or vehicle damages) are to be reported immediately to both DARTS and the City's insurance company, 5) Driver's Salary & Benefits: The City will provide an STS-certified driver whenever using the 5310 vehicle exclusively for its regular use on the second and fourth Friday of each month or special service days, DARTS will provide an STS certified and trained driver at all other times when in service in the Farmington area community for DARTS purposes, 6) Storage of 531 0 Vehicle: The City will provide for the indoor storage space within the City limits and will provide this space as in-kind donation, 7) Promotion: The City at its discretion may provide a vehicle decal, which can be affIXed to the outside of the 5310 vehicle, The markings of the vehicle are to be consistent with the DARTS fleet markings, C, Vehicle Rental: DARTS and the City shall create a vehicle rental agreement for the reservation and use of the bus by the City, The vehicle will be available for use by the City on all Fridays of the month and at such other times following "Section H," below, The City shall pay a rental fee of$35 per each day of reserved and/or scheduled use, It shall be understood the City may not require the bus on certain days of the month (i,e, low or no rider sign up, poor weather, etc,) and may elect to forgo the usage and/or reserved availability of the bus on select days, This being the case, the City shall only be required to pay for the actual usage days each month, provided the City agrees it will be responsible for Page 1 of2 92 a minimum payment of $70,00 per month or the equivalent of two (2) usage days per month, An annual inflation factor of3% shall be added on January 1 st of each new calendar year and shall follow length of service years the bus shall be jointly "Time Shared" by both parties, D, The City can set the fare on days it uses the 5310 vehicle and may keep all fares collected on those days, E, The City will track and record necessary passenger trip data for all rides provided, This information will be provided to DARTS on a monthly basis and in the format required for record-keeping and reimbursement purposes, F, DARTS will offer gap ridership service coverage in the greater Farmington area during the hours of7:00 a,m, to 10:00 p,m, Monday through Thursday with the shared 5310 vehicle, Based on demonstrated requests and needs of riders, DARTS will also provide service on Saturday (8:00 a,m,-2:30 p,m,) and Sunday (8:00 a,m,-4:30 p,m,) G. DARTS and the City will apply for a small size bus (a vehicle designed to carry 15 or less people - including the driver); if the City needs additional wheelchair spaces for a special event, another DARTS vehicle can be substituted for the service or DARTS can serve as a back-up vehicle, H, The bus will be reserved for exclusive use by the City on Fridays from 12:01 a,m, to 11 :59 p,m, The City may cancel the use of the bus on Fridays with a minimum of seventy-two (72) hours of advance notice to the DARTS dispatch center, Use of the 5310 vehicle on any other day or time must be agreed upon by DARTS and one week's notice must be provided, I. DARTS reserves the right to use the 5310 vehicle for any appropriate trips when it is not in use by the City, 1. When the vehicle has reached the end of its useful life as determined by DARTS, DARTS will give highest priority to the continued partnership with the City if a replacement vehicle is applied for through the 5310 grant process, If another vehicle is not obtained through the 5310 grant process, DARTS agrees to give the City the first opportunity to purchase the vehicle at fair market value, It is understood that this is a legally non-binding agreement, In the event funding is approved for the purchase of a 5310 vehicle, DARTS and the City will enter into a formal vehicle lease or rental agreement, DARTS: CITY OF FARMINGTON: BY: BY: ITS: MAYOR ITS BY: ITS: CITY ADMINISTRATOR DATE DATE Page 2 of2 93 Ida.. City of Farmington 430 Third Street l"arIllington, Minnesota 651.280.6800. Fax 651.280,6899 www.ci.furmingtun.mn.LL.I TO: Mayor and CounciImembers FROM: Peter J, Herlofsky, Jr, City Administrator SUBJECT: Adopt Ordinances - Utility Franchise Fees DATE: September 20,2010 INTRODUCTION / DISCUSSION Meetings have been held with the various utility companies including Minnesota Energy Resources, Dakota Electric Association, and Xcel Energy to discuss franchise fees, The attached ordinances are the result of reaching agreements with these companies to charge franchise fees, The revenue from these fees will be used to pay the costs of seal coating rather than assessing the residents for seal coat projects, City Attorney Jamnik will be available to answer any questions, BUDGET IMPACT The estimated revenue will be $400,000 to cover the annual seal coating costs, ACTION REOUESTED Approve the attached Franchise Fee Ordinances with Minnesota Energy Resources, Dakota Electric Association, and Xcel Energy, Respectfully submitted, Peter J, Herlofsky, Jr, City Administrator Attachments: 1, Minnesota Energy Resources Natural Gas Franchise Fee Ordinance 2, a, Dakota Electric Association Electric Franchise Ordinance b, Dakota Electric Association Electric Franchise Fee Ordinance 3, a, Xcel Energy Electric Franchise Ordinance b, Xcel Energy Electric Franchise Fee Ordinance 4, Summary of all Ordinances CmullerlHerlofsky/Council memosIFrancbise Fees 9-20-10 94 Ordinance No. CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA NATURAL GAS FRANCmSE FEE ORDINANCE AN ORDINANCE ESTABLISHING A NATURAL GAS SERVICE FRANCmSE FEE ON MINNESOTA ENERGY RESOURCES, A MINNESOTA CORPORATION, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING NATURAL GAS SERVICE WITHIN THE CITY PURSUANT TO ITS FRANCmSE. THE CITY COUNCn.. OF THE CITY OF FARMINGTON, DAKOTA COUNTY, MINNESOTA ORDAINS: SECTION 1. Franchise Fee, In exchange for the franchise granted herein, Grantee (Minnesota Energy Resources) shall collect from its customers and pay to the Grantor an amount based on the following fee schedule after adjustment for the net write-off of uncollectible accounts and corrections of bills theretofore rendered and according to the terms of Section 9 of the Franchise between City and Company: CUSTOMER CLASS FEE $1,60 /Month/Customer $15,00 /Month/Customer $25,00 /Month/Customer Residential Commercial Firm Commercial Interruptible The amount paid by Grantee shall be in lieu of, and Grantee shall be exempt from, all other occupation, license, excise or right-of-way permit fees or taxes which the City of Farmington may impose for the rights and privileges herein granted or for the privilege of doing business within the City of Farmington, and in the event any such fee, charge, license, tax or assessment shall be imposed by the Grantor, the payment to be made in accordance with the provisions of this section shall be reduced in an amount equal to the annual burden of such fee, charge, license, tax or assessment imposed upon the Grantee, Ad valorem property taxes imposed generally upon all real and personal property within the City of Farmington shall not be deemed to affect the obligation of the Grantee under this section, SECTION 2. Collection ofthe Fee. The fee is an account-based fee on each premise and not a meter-based fee, In the event that an entity covered by this ordinance has more than one meter at a single premise, but only one account, only one fee shall be assessed to that account, If a premise has two or more meters being billed at different rates, the Grantee may have an account for each rate classification, which will result in more than one franchise fee assessment for natural gas service to that premise" If the Grantee combines the rate classifications into a single account, the franchise fee assessed to the account will be the largest franchise fee applicable to a single rate classification for energy delivered to that premise, In the event any entities covered by the ordinance have more than one premise, each premise shall be subject to the appropriate fee, In 1 95 the event a question arises as to the proper fee amount for any premise, the Grantee's manner of billing for energy used at all similar premises in the city will control. Grantee shall list the local franchise fee collected from customers as a separate item on bills for utility service issued to customers, If at any time the Minnesota Public Utilities Commission, or other authority having proper jurisdiction, prohibits such recovery, then Grantee will no longer be obligated to collect and pay the franchise fee herein contemplated, In addition, the Grantee may discount or reduce the fee payable for natural gas delivered to a specific customer of the Company when it is required to reduce the franchise fee to retain the business of that customer, Modification or reduction ofthe franchise fee should occur if the fee would cause the customer to cease purchase or transportation deliveries of natural gas from the Company by installing equipment to access the natural gas supply not subject to the City's franchise fee, SECTION 3. Pavment of the Fee. The franchise fee shall be payable by the Grantee quarterly and shall be based on the amount collected by Grantee during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for natural gas service in each class, The payment shall be due the last business day of the month following the period for which the payment is made, No franchise fee shall be payable by the Grantee if the Company is legally unable to first collect an amount equal to the franchise fee from its customers in each applicable class of customers by imposing a surcharge in Grantee's applicable rates for natural gas service, Grantee may pay the Grantor the fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibles, refunds and correction of erroneous billings, The Grantee shall provide at the time of each payment a statement summarizing how the franchise fee payment was determined, Including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for uncollectibles, refunds or error corrections, Grantee shall make its records available for inspection by the Grantor at reasonable times provided that the City and its designated representative agree in writing not to disclose any information which would indicate the amount paid by any identifiable customer or customers or any other information regarding identified customers SECTION 4. Surchame. The Grantor recognizes that the Minnesota Public Utilities Commission allows the utility company to add a surcharge to customer rates to reimburse such utility company for the cost of the fee and that Grantee will surcharge its customers in the City the amount of the fee, SECTION 5. Enforcement. Any dispute, including enforcement of a default regarding this ordinance will be resolved in accordance with the Franchise Agreement, SECTION 6, Effective Date. The franchise fee shall become effective after publication and ninety (90) days after written notice to the Company and approval from the Minnesota Public Utilities Commission, as provided in the Franchise but not before, 2 96 ADOPTED this _day of ATTEST: SEAL Approved as to form the ,2010 by the City Council of the City of Farmington, CITY OF FARMINGTON By: day of By: Todd Larson, Mayor Peter J, Herlofsky, Jr" City Administrator 2010, By: City Attorney 3 97 ELECTRIC FRANCmSE ORDINANCE ORDINANCE NO. CITY OF FARMINGTON, DAKOTA COUNTY, MINNESOTA AN ORDINANCE GRANTING TO DAKOTA ELECTRIC ASSOCIATION, A MINNESOTA CORPORATION, ITS SUCCESSORS AND ASSIGNS, PERMISSION TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN IN THE CITY OF FARMINGTON, MINNESOTA, AN ELECTRIC DISTRIBUTION SYSTEM AND TRANSMISSION LINES, INCLUDING NECESSARY POLES, LINES, FIXTURES AND APPURTENANCES, FOR THE FURNISHING OF ELECTRIC ENERGY TO THE CITY, ITS INHABITANTS, AND OTHERS, AND TO USE THE PUBLIC GROUNDS AND PUBLIC WAYS OF THE CITY FOR SUCH PURPOSES. THE CITY COUNCIL OF THE CITY OF FARMINGTON, DAKOTA COUNTY, MINNESOTA, ORDAINS: SECTION 1. DEFINITIONS. For purposes of this Ordinance, the following capitalized terms listed in alphabetical order shall have the following meanings: 1.1 City. The City of Farmington, County of Dakota, State of Minnesota, 1,2 City Utility System. Facilities used for providing non-energy related public utility service owned or operated by City or agency thereof, including sewer and water service, but excluding facilities for providing heating, lighting or other forms of energy, 1.3 Commission. The Minnesota Public Utilities Commission, or any successor agency or agencies, including an agency of the federal government, which preempts all, or part of the authority to regulate electric retail rates now vested in the Minnesota Public Utilities Commission, 1.4 Company. Dakota Electric Association, a Minnesota corporation, its successors and assigns, 1.5 Electric Facilities. Electric transmission and distribution towers, poles, lines, guys, anchors, conduits, fixtures, and necessary appurtenances owned or operated by Company for the purpose of providing electric energy for public use, 1,6 Notice, A written notice served by one party on the other party referencing one or more provisions of this Ordinance. Notice to Company shall be mailed to Dakota Electric Association, 4300 220th Street West, Farmington, MN 55024, Notice to the City shall be mailed to the City Administrator, City Hall, 430 Third Street, Farmington, MN 55024, Either party may 98 change its respective address for the purpose of this Ordinance by written notice to the other party, 1,7 Public Ground. Land owned by the City for park, open space or similar purpose, which is held for use in common by the public, 1,8 Public Way. Any street, alley, walkway or other public right-of-way within the City, SECTION 2. ADOPTION OF FRANCmSE. 2,1 Grant of Franchise, City hereby grants Company, for a period of20 years from the date passed and approved by the City, the right to transmit and furnish electric energy for light, heat, power and other purposes for public and private use within and through the limits of the City as its boundaries now exist or as they may be extended in the future, For these purposes, Company may construct, operate, repair and maintain Electric Facilities in, on, over, under and across the Public Grounds and Public Ways of City, subject to the provisions of this Ordinance, Company may do all reasonable things necessary or customary to accomplish these purposes, subject, however, to such reasonable regulations as may be imposed by the City pursuant to ordinance and to the further provisions of this franchise agreement, 2,2 Effective Date: Written Acceptance, This franchise agreement shall be in force and effect from and after passage of this Ordinance, its acceptance by Company, and its publication as required by law, The City, by Council resolution, may revoke this franchise agreement if Company does not file a written acceptance with the City within 90 days after publication, 2.3 Service and Rates, The service to be provided and the rates to be charged by Company for electric service in City are subject to the jurisdiction of the Commission, The area within the City in which Company may provide electric service is subject to the provisions of Minnesota Statutes, Section 216B.4Q, 2.4 Publication Expense, The expense of publication of this Ordinance will be paid by City and reimbursed to City by Company, 2,5 Dispute Resolution, If either party asserts that the other party is in default in the performance of any obligation hereunder, the complaining party shall notify the other party of the default and the desired remedy, The notification shall be written, Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution of the dispute, If the dispute is not resolved within 30 days of the written notice, the parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of this mediator, If a mediator is not used, or if the parties are unable to resolve the dispute within 30 days after first meeting with the selected mediator, either party may commence an action in District Court to interpret and enforce this franchise or for such other relief as may be permitted by law or equity for breach of contract, or either party may take any other action permitted by law, 99 SECTION 3. LOCATION. OTHER REGULATIONS. 3,1 Location of Facilities, Electric Facilities shall be located, constructed and maintained so as not to interfere with the safety and convenience of ordinary travel along and over Public Ways and so as not to disrupt normal operation of any City Utility System previously installed therein, Electric Facilities shall be located on Public Grounds as determined by the City, Company's construction, reconstruction, operation, repair, maintenance and location of Electric Facilities shall be subject to permits if required by separate ordinance and to other reasonable regulations of the City to the extent not inconsistent with the terms of this franchise agreement, Company may abandon underground Electric Facilities in place, provided at the City's request, Company will remove abandoned metal or concrete encased conduit interfering with a City improvement project, but only to the extent such conduit is uncovered by excavation as part of the City improvement project, Abandoned facilities shall be subject to the provision of Minn, Rule 7819.3300, 3,2 Field Locations and Mapping Information, Company shall provide field locations for its underground Electric Facilities within City consistent with the requirements of Minnesota Statutes, Chapter 216D, Subject to the Homeland Security Act, or other confidentiality protections under state or federal law, the Company shall provide current mapping information for its Electric Facilities in accordance with the requirements of Minnesota Rules Parts 7819.4000 and 7819.4100, The Company shall provide this information electronically in a format mutually acceptable to the City and Company, 3.3 Street Openings, Company shall not open or disturb any Public Ground or Public Way for any purpose without first having obtained a permit from the City, if required by a separate ordinance, for which the City may impose a reasonable fee, Permit conditions imposed on Company shall not be more burdensome than those imposed on other utilities for similar facilities or work, Company may, however, open and disturb any Public Ground or Public Way without permission from the City where an emergency exists requiring the immediate repair of Electric Facilities, In such event Company shall notify the City by telephone to the office designated by the City as soon as practicable. Not later than the second working day thereafter, Company shall obtain any required permits and pay any required fees, 3.4 Restoration, After undertaking any work requiring the opening of any Public Ground or Public Way, Company shall restore the same, including paving and its foundation, in accordance with Minnesota Rules Part 7819.1100, to as good a condition as formerly existed, and shall maintain any paved surface in good condition for two years thereafter, The work shall be completed as promptly as weather permits, and if Company shall not promptly perform and complete the work, remove all dirt, rubbish, equipment and materia~ and put the Public Ground or Public Way in the said condition, the City shall have, after demand to Company to cure and the passage of a reasonable period of time following the demand, but not to exceed five days, the right to make the restoration at the expense of Company. Company shall pay to the City the cost of such work done for or performed by the City, This remedy shall be in addition to any other remedy available to the City for noncompliance with this Section 3.4, but the City hereby waives any requirement for Company to post a construction performance bond, certificate of insurance, 100 letter of credit or any other form of security or assurance that may be required, under a separate existing or future ordinance of the City, of a person or entity obtaining the City's permission to install, replace or maintain facilities in a Public Way, 3.5 Avoid Damage to Electric Facilities, Nothing in this Ordinance relieves any person from liability arising out of the failure to exercise reasonable care to avoid damaging Electric Facilities while performing any activity, 3,6 Notice of Improvements, The City must give Company reasonable notice of plans for improvements to Public Grounds or Public Ways where the City has reason to believe that Electric Facilities may affect or be affected by the improvement. The notice must contain: (i) the nature and character of the improvements, (ii) the Public Grounds and Public Ways upon which the improvements are to be made, (ill) the extent of the improvements, (iv) the time when the City will start the work, and (v) ifmore than one Public Ground or Public Way is involved, the order in which the work is to proceed, The notice must be given to Company a sufficient length of time in advance of the actual commencement of the work to permit Company to make any necessary additions, alterations or repairs to its Electric Facilities, 3,7 Shared Use of Poles, Company shall make space available on its poles or towers for City fire, water utility, police or other City facilities upon terms and conditions acceptable to Company whenever such use will not interfere with the use of such poles or towers by Company, by another electric utility, by a telephone utility, or by any cable television company or other form of communication company, In addition, the City shall pay for any added cost incurred by Company because of such use by City, Any City facilities shall be installed and maintained in accordance with the National Electrical Safety Code (NESC), SECTION 4. RELOCATIONS. 4,1 Relocation of Electric Facilities in Public Ways, Company shall comply with the requirements of Minnesota Rules, Part 7819.3100 and applicable law relating to the relocation of Electric Facilities in Public Ways, If the City determines to vacate a Public Way, the City shall give Company reasonable notice of plans to vacate. If a relocation is ordered within five years of a prior relocation of the same Electric Facilities, which was made at Company expense, the City shall reimburse Company for non-betterment costs on a time and material basis, provided that if a subsequent relocation is required because of the extension of a City Utility System to a previously unserved area, Company may be required to make the subsequent relocation at its expense, 4,2 Relocation of Electric Facilities in Public Ground, City may require Company", at Company's expense, to relocate or remove its Electric Facilities from Public Ground upon a finding by City that the Electric Facilities have become or will become a substantial impairment to the existing or proposed public use of the Public Ground. 4.3 Change to Underground, If required by the City, the Company shall change from aerial to underground, at City expense based on the Company's time and material costs in any area where: (1) the City requests underground lines and all other lines hereafter are changed from aerial to underground, or (2) any aerial line is changed to underground by the open trench method 101 and the City requests the Company to share the trench with telephone and/or cable television, and the Company can share trench at a cost not to exceed the Company's pro rata share ofthe cost of the trenching, The City may pay any costs incurred hereunder through a surcharge on the Company's customers located within the City, 4.4 Projects with Federal Funding, Relocation, remova~ or rearrangement of any Company Electric Facilities made necessary because of the extension into or through City of a federally-aided highway project shall be governed by the provisions of Minnesota Statutes, Section 161.46, as supplemented or amended, It is understood that the right herein granted to Company is a valuable right, City shall not order Company to remove or relocate its Electric Facilities when a Public Way is vacated, improved or realigned because of a renewal or a redevelopment plan which is financially subsidized in whole or in part by the Federal Government or any agency thereof, unless the reasonable non-betterment costs of such relocation and the loss and expense resulting therefrom are first paid to Company, but the City need not pay those portions of such for which reimbursement to it is not available, 4,5 No Waiver, The provisions of this franchise apply only to facilities constructed in reliance on a franchise from the City and shall not be construed to waive or modify any rights obtained by Company for installations within a Company right-of-way acquired by easement or prescriptive right before the applicable Public Ground or Public Way was established, or Company's rights under state or county permit. SECTION 5. TREE TRIMMING. Company may trim all trees and shrubs in the Public Grounds and Public Ways of City to the extent Company finds necessary to avoid interference with the proper construction, operation, repair and maintenance of any Electric Facilities installed hereunder, provided that Company shall save the City harmless from any liability arising therefrom, and subject to permit or other reasonable regulation by the City. SECTION 6. INDEMNIFICATION. 6,1 Indemnity of City, Company shall indemnify, keep and hold the City free and harmless from any and all liability on account of injury to persons or damage to property occasioned by the construction, maintenance, repair, inspection, the issuance of permits, or the operation of the Electric Facilities located in the Public Grounds and Public Ways, The City shall not be indemnified for losses or claims occasioned through its own negligence except for losses or claims arising out of or alleging the City's negligence as to the issuance of permits for, or inspection of, Company's plans or work, The City shall not be indemnified if the injury or damage results from the performance in a proper manner of acts reasonably deemed hazardous by Company, and such performance is nevertheless ordered or directed by City after notice of Company's determination, 6,2 Defense of City, In the event a suit is brought against the City under circumstances where this agreement to indemnify applies, Company at its sole cost and expense shall defend the City in such suit if written notice thereof is promptly given to Company within a 102 period wherein Company is not prejudiced by lack of such notice, If Company is required to indemnify and defend, it will thereafter have control of such litigation, but Company may not settle such litigation without the consent of the City, which consent shall not be unreasonably withheld, This section is not, as to third parties, a waiver of any defense or immunity otherwise available to the City and Company, in defending any action on behalf of the City, shall be entitled to assert in any action every defense or immunity that the City could assert in its own behalf. SECTION 7. VACATION OF PUBLIC WAYS. The City shall give Company at least two weeks prior written notice of a proposed vacation ofa Public Way, Except where required for a City improvement project, the vacation of any Public Way, after the installation of Electric Facilities, shall not operate to deprive Company of its rights to operate and maintain such Electric Facilities, until the reasonable cost of relocating the same and the loss and expense resulting from such relocation are first paid to Company, In no case, however, shall City be liable to Company for failure to specifically preserve a right-of-way under Minnesota Statutes, Section 160,29. SECTION 8. CHANGE IN FORM OF GOVERNMENT. Any change in the form of government of the City shall not affect the validity of this Ordinance, Any governmental unit succeeding the City shall, without the consent of Company, succeed to all of the rights and obligations of the City provided in this Ordinance, SECTION 9. FRANCmSE FEE. 9,1 Fee Schedule. During the term of the franchise hereby granted, and in lieu of any permit or other fees being imposed on Company, the City may impose on Company a franchise fee by collecting the amounts indicated in a Fee Schedule set forth in a separate ordinance from each customer in the designated Company Customer Class, The parties have agreed that the franchise fee collected by the Company and paid to the City in accordance with this Section 9 shall not exceed the following amounts, Class Fee Per Premise Per Month Residential Irrigation Small General- Non-Dem General- Demand Public Street Lighting C&I Interruptible $1.60 $2,00 $2,25 $25,00 $6,00 $25,00 9,2 Separate Ordinance, The franchise fee shall be imposed by a separate ordinance duly adopted by the City Council, which ordinance shall not be adopted until at least 60 days after written notice enclosing such proposed ordinance has been served upon Company by certified mail, The fee shall not become effective until the beginning of a Company billing month at least 90 days after written notice enclosing such adopted ordinance has been served upon 103 Company by certified mail, and Company has received any necessary approvals from the Commission, Section 2,5 shall constitute the sole remedy for solving disputes between Company and the City in regard to the interpretation of, or enforcement of, the separate ordinance, No action by the City to implement a separate ordinance will commence until this Ordinance is effective, A separate ordinance which imposes a lesser franchise fee on the residential class of customers than the maximum amount set forth in Section 9,1 above shall not be effective against Company unless the fee imposed on each other customer classification is reduced proportionately in the same or greater amount per class as the reduction represented by the lesser fee on the residential class, 9.3 Terms Defined For the purpose of this Section 9, the following definitions apply: 9.3,1 "Customer Class" shall refer to the classes listed on the Fee Schedule and as defined or determined in Company's electric tariffs on file with the Commission, 9.3,2 ''Fee Schedule" refers to the schedule in Section 9,1 setting forth the various customer classes from which a franchise fee would be collected if a separate ordinance were implemented immediately after the effective date of this franchise agreement, The Fee Schedule in the separate ordinance may include new Customer Class added by Company to its electric tariffs after the effective date of this franchise agreement, 9.4 Collection of the Fee. The franchise fee shall be payable quarterly and shall be based on the amount collected by Company during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for electric service in each class, The payment shall be due the last business day of the month following the period for which the payment is made. The franchise fee may be changed by ordinance from time to time; however, each change shall meet the same notice requirements and not occur more often than annually and no change shall require a collection from any customer for electric service in excess of the amounts specifically permitted by this Section 9, The time and manner of collecting the franchise fee is subject to the approval of the Commission. No franchise fee shall be payable by Company if Company is legally unable to first collect an amount equal to the franchise fee from its customers in each applicable class of customers by imposing a surcharge in Company's applicable rates for electric service, Company may pay the City the fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibles, refunds and correction of erroneous billings, Company agrees to make its records available for inspection by the City at reasonable times provided that the City and its designated representative agree in writing not to disclose any information which would indicate the amount paid by any identifiable customer or customers or any other information regarding identified customers, In addition, the Company agrees to provide at the time of each payment a statement summarizing how the franchise fee payment was determined, including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for any uncollectibles, refunds or error corrections, 9,5 Equivalent Fee Requirement, The separate ordinance imposing the fee shall not be effective against Company unless it lawfully imposes and the City monthly or more often collects a fee or tax. of the same or greater equivalent amount on the receipts from sales of energy within the City by 104 any other energy supplier, provided that, as to such a supplier, the City has the authority to require a franchise fee or to impose a tax. The "same or greater equivalent amount" shall be measured, if practicable, by comparing amounts collected as a franchise fee from each similar customer, or by comparing, as to similar customers the percentage of the annual bill represented by the amount collected for franchise fee purposes, The franchise fee or tax shall be applicable to energy sales for any energy use related to heating, cooling or lighting, or to run machinery and appliances, but shall not apply to energy sales for the purpose of providing fuel for vehicles, If the Company specifically consents in writing to a franchise or separate ordinance collecting or failing to collect a fee from another energy supplier in contravention of this Section 9,5, the foregoing conditions will be waived to the extent of such written consent. SECTION 10. PROVISIONS OF ORDINANCE. 10,1 Severability, Every section, provision, or part of this Ordinance is declared separate from every other section, provision, or part and if any section, provision, or part shall be held invalid, it shall not affect any other section, provision, or part, Where a provision of any other City ordinance conflicts with the provisions of this Ordinance, the provisions of this Ordinance shall prevail, 10,2 Limitation on Applicability, This Ordinance constitutes a franchise agreement between the City and Company as the only parties, and no provision of this franchise shall in any way inure to the benefit of any third person (including the public at large) so as to constitute any such person as a third party beneficiary of the agreement or of anyone or more of the terms hereof, or otherwise give rise to any cause of action in any person not a party hereto, SECTION 11. AMENDMENT PROCEDURE. Either party to this franchise agreement may at any time propose that the agreement be amended to address a subject of concern and the other party will consider whether it agrees that the amendment is mutually appropriate, If an amendment is agreed upon, this Ordinance may be amended at any time by the City passing a subsequent ordinance declaring the provisions of the amendment, which amendatory ordinance shall become effective upon the filing of Company's written consent thereto with the City Clerk within 90 days after the date of final passage by the City of the amendatory ordinance. SECTION 12. PREVIOUS FRANCmSES SUPERSEDED. This franchise supersedes any previous electric franchise granted to Company or its predecessor, Passed and approved: ,2010, Mayor 105 Attest: city Clerk Date Published: 106 Ordinance No. CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA ELECTRIC FRANCmSE FEE ORDINANCE AN ORDINANCE ESTABLISHING AN ELECTRIC SERVICE FRANCmSE FEE ON DAKOTA ELECTRIC ASSOCIATION, A MINNESOTA CORPORATION, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING ELECTRIC SERVICE WITHIN THE CITY PURSUANT TO ITS FRANCmSE. THE CITY COUNCIL OF THE CITY OF FARMINGTON, DAKOTA COUNTY, MINNESOTA ORDAINS: SECTION 1. Franchise Fee, In exchange for the franchise granted herein, Grantee (Dakota Electric Association) shall collect from its customers and pay to the Grantor an amount based on the following fee schedule after adjustment for the net write-off of uncollectible accounts and corrections of bills theretofore rendered, and according to the terms of Section 9 of the Franchise between City and Company: Class Fee Per Premise Per Month Residential Irrigation Small General- Non-Oem General- Demand Public Street Lighting C&I Interruptible $1.60 $2,00 $2,25 $25,00 $6,00 $25,00 The amount paid by Grantee shall be in lieu of, and Grantee shall be exempt from, all other occupation, license, excise or right-of-way permit fees or taxes which the City of Farmington may impose for the rights and privileges herein granted or for the privilege of doing business within the City of Farmington, and in the event any such fee, charge, license, tax or assessment shall be imposed by the Grantor, the payment to be made in accordance with the provisions of this section shall be reduced in an amount equal to the annual burden of such fee, charge, license, tax or assessment imposed upon the Grantee, Ad valorem property taxes imposed generally upon all real and personal property within the City of Farmington shall not be deemed to affect the obligation of the Grantee under this section, SECTION 2. Collection ofthe Fee: The fee is an account-based fee on each premise and not a meter-based fee, In the event that an entity covered by this ordinance has more than one meter at a single premise, but only one account, only one fee shall be assessed to that account, If a premise has two or more meters being billed at different rates, the Company may have an account for each rate classification, which will result in more than one franchise fee assessment for electric 1 107 service to that premise" If the Company combines the rate classifications into a single account, the franchise fee assessed to the account will be the largest franchise fee applicable to a single rate classification for energy delivered to that premise, In the event any entities covered by the ordinance have more than one premise, each premise shall be subject to the appropriate fee, In the event a question arises as to the proper fee amount for any premise, the Company's manner of billing for energy used at all similar premises in the city will control. Grantee shall list the local franchise fee collected from customers as a separate item on bills for utility service issued to customers, If at any time the Minnesota Public Utilities Commission, or other authority having proper jurisdiction, prohtbits such recovery, then Grantee will no longer be obligated to collect and pay the franchise fee herein contemplated, In addition, the Company may discount or reduce the fee payable for electricity delivered to a specific customer of the Company when it is required to reduce the franchise fee to retain the business of that customer, Modification or reduction of the franchise fee should occur if the fee would cause the customer to cease purchasing electricity from the Company by installing equipment to generate or purchase electricity not subject to the City's franchise fee, SECTION 3. Payment of the Fee. The franchise fee shall be payable by the Company quarterly and shall be based on the amount collected by Company during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for electric service in each class, The payment shall be due the last business day of the month following the period for which the payment is made, No franchise fee shall be payable by Company if Company is legally unable to first collect an amount equal to the franchise fee from its customers in each applicable class of customers by imposing a surcharge in Company's applicable rates for electric service, Company may pay the City the fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibles, refunds and correction of erroneous billings, The Company shall provide at the time of each payment a statement summarizing how the franchise fee payment was determined, including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for uncollectibles, refunds or error corrections, Company shall make its records available for inspection by the City at reasonable times provided that the City and its designated representative agree in writing not to disclose any information which would indicate the amount paid by any identifiable customer or customers or any other information regarding identified customers, SECTION 4. Surchame. The City recognizes that the Minnesota Public Utilities Commission allows the utility company to add a surcharge to customer rates to reimburse such utility company for the cost of the fee and that Company will surcharge its customers in the City the amount of the fee, SECTION 5. Enforcement. Any dispute, including enforcement of a default regarding this ordinance will be resolved in accordance with the Franchise Agreement, 2 108 SECTION 6. Effective Date. The franchise fee shall become after publication and ninety (90) days after written notice to the Company, and approval by the Minnesota Public Utilities Commission, as provided in the Franchise, and thereupon collection of the fee for all Customer Classes shall commence at the beginning of the Company's billing month, ADOPTED this _day of ,2010 by the City Council of the City of Farmington, CITY OF FARMINGTON By: Todd Larson, Mayor ATTEST: By: Peter J, Herlofsky, Jr" City Administrator Passed and approved by the <<GovBody>> ofthe <<CityType>> of <<Name>>, <<State>> on this _ day of <<MayorChr>> ATTEST: <<CityType>> Clerk 3 109 ELECTRIC FRANCmSE ORDINANCE ORDINANCE NO. CITY OF FARMINGTON, DAKOTA COUNTY, MINNESOTA AN ORDINANCE GRANTING TO NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, D/B/A XCEL ENERGY, ITS SUCCESSORS AND ASSIGNS, PERMISSION TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN IN THE CITY OF FARMINGTON, MINNESOTA, AN ELECTRIC DISTRIBUTION SYSTEM AND TRANSMISSION LINES, INCLUDING NECESSARY POLES, LINES, FIXTURES AND APPURTENANCES, FOR THE FURNISHING OF ELECTRIC ENERGY TO THE CITY, ITS INHABITANTS, AND OTHERS, AND TO USE THE PUBLIC GROUNDS AND PUBLIC WAYS OF THE CITY FOR SUCH PURPOSES. THE CITY COUNCn... OF THE CITY OF FARMINGTON, DAKOTA COUNTY, MINNESOTA, ORDAINS: SECTION 1. DEFINITIONS. For purposes of this Ordinance, the following capitalized terms listed in alphabetical order shall have the following meanings: 1.1 City. The City of Farmington, County of Dakota, State of Minnesota, 1,2 City Utility System. Facilities used for providing non-energy related public utility service owned or operated by City or agency thereof, including sewer and water service, but excluding facilities for providing heating, lighting or other forms of energy, 1.3 Commission. The Minnesota Public Utilities Commission, or any successor agency or agencies, including an agency of the federal government, which preempts all, or part of the authority to regulate electric retail rates now vested in the Minnesota Public Utilities Commission. 1.4 Company. Northern States Power Company, a Minnesota corporation, d/b/a Xcel Energy, a Minnesota corporation, its successors and assigns, 1.5 Electric Facilities. Electric transmission and distribution towers, poles, lines, guys, anchors, conduits, fixtures, and necessary appurtenances owned or operated by Company for the purpose of providing electric energy for public use, 1,6 Notice, A written notice served by one party on the other party referencing one or more provisions of this Ordinance, Notice to Company shall be mailed to Xcel Energy, 414 Nicollet Mall, 5th Floor, Minneapolis, MN 55401. Notice to the City shall be mailed to the City 1 110 Administrator, City Hall, 430 Third Street, Farmington, MN 55024, Either party may change its respective address for the purpose of this Ordinance by written notice to the other party, 1,7 Public Ground. Land owned by the City for park, open space or similar purpose, which is held for use in common by the public, City, 1.8 Public Way. Any street, alley, walkway or other public right-of-way within the SECTION 2. ADOPTION OF FRANCmSE. 2,1 Grant of Franchise, City hereby grants Company, for a period of20 years from the date passed and approved by the City, the right to transmit and furnish electric energy for light, heat, power and other purposes for public and private use within and through the limits of the City as its boundaries now exist or as they may be extended in the future, For these purposes, Company may construct, operate, repair and maintain Electric Facilities in, on, over, under and across the Public Grounds and Public Ways of City, subject to the provisions of this Ordinance, Company may do all reasonable things necessary or customary to accomplish these purposes, subject, however, to such reasonable regulations as may be imposed by the City pursuant to ordinance and to the further provisions of this franchise agreement, 2,2 Effective Date: Written Acceptance, This franchise agreement shall be in force and effect from and after passage of this Ordinance, its acceptance by Company, and its publication as required by law, The City", by Council resolution", may revoke this franchise agreement if Company does not file a written acceptance with the City within 90 days after publication, 2.3 Service and Rates, The service to be provided and the rates to be charged by Company for electric service in City are subject to the jurisdiction of the Commission, The area within the City in which Company may provide electric service is subject to the provisions of Minnesota Statutes, Section 2l6B.40, 2.4 Publication Expense, The expense of publication of this Ordinance will be paid by City and reimbursed to City by Company, 2,5 Dispute Resolution, If either party asserts that the other party is in default in the performance of any obligation hereunder, the complaining party shall notify the other party of the default and the desired remedy, The notification shall be written, Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution of the dispute, If the dispute is not resolved within 30 days of the written notice, the parties may jointly select a mediator to facilitate further discussion, The parties will equally share the fees and expenses of this mediator, If a mediator is not used", or if the parties are unable to resolve the dispute within 30 days after first meeting with the selected mediator, either party may commence an action in District Court to interpret and enforce this franchise or for such other relief as may be permitted by law or equity for breach of contract, or either party may take any other action permitted by law, 2 111 SECTION 3. LOCATION. OTHER REGULATIONS. 3,1 Location of Facilities, Electric Facilities shall be located, constructed and maintained so as not to interfere with the safety and convenience of ordinary travel along and over Public Ways and so as not to disrupt normal operation of any City Utility System previously installed therein, Electric Facilities shall be located on Public Grounds as determined by the City, Company's construction, reconstruction, operation, repair, maintenance and location of Electric Facilities shall be subject to permits if required by separate ordinance and to other reasonable regulations of the City to the extent not inconsistent with the terms of this franchise agreement, Company may abandon underground Electric Facilities in place, provided at the City's request, Company will remove abandoned metal or concrete encased conduit interfering with a City improvement project, but only to the extent such conduit is uncovered by excavation as part of the City improvement project. Abandoned facilities shall be subject to the provision of Minn, Rule 7819, 3,2 Field Locations and Mapping Information, Company shall provide field locations for its underground Electric Facilities within City consistent with the requirements of Minnesota Statutes, Chapter 2160, Subject to the Homeland Security Act, or other confidentiality protections under state or federal law, the Company shall provide current mapping information for its Electric Facilities in accordance with the requirements of Minnesota rules Part s7819.4000 and 7819.4100, The Company shall provide this information electronically in a format mutually acceptable to the the City and Company, 3.3 Street Openings, Company shall not open or disturb any Public Ground or Public Way for any purpose without first having obtained a permit from the City, if required by a separate ordinance, for which the City may impose a reasonable fee, Permit conditions imposed on Company shall not be more burdensome than those imposed on other utilities for similar facilities or work. Company may, however, open and disturb any Public Ground or Public Way without permission from the City where an emergency exists requiring the immediate repair of Electric Facilities, In such event Company shall notify the City by telephone to the office designated by the City as soon as practicable, Not later than the second working day thereafter, Company shall obtain any required permits and pay any required fees, 3.4 Restoration, After undertaking any work requiring the opening of any Public Ground or Public Way, Company shall restore the same, including paving and its foundation, in accordance with Minnesota Rules Part 7819,1100, to as good a condition as formerly existed, and shall maintain any paved surface in good condition for two years thereafter, The work shall be completed as promptly as weather permits, and if Company shall not promptly perform and complete the work, remove all dirt, rubbish, equipment and materia~ and put the Public Ground or Public Way in the said condition, the City shall have, after demand to Company to cure and the passage of a reasonable period of time following the demand, but not to exceed five days, the right to make the restoration at the expense of Company, Company shall pay to the City the cost of such work done for or performed by the City, This remedy shall be in addition to any other remedy available to the City for noncompliance with this Section 3.4, but the City hereby waives any requirement for Company to post a construction performance bond, certificate of insurance, 3 112 letter of credit or any other form of security or assurance that may be required, under a separate existing or future ordinance of the City, of a person or entity obtaining the City's permission to install, replace or maintain facilities in a Public Way, 3.5 Avoid Damage to Electric Facilities, Nothing in this Ordinance relieves any person from liability arising out of the failure to exercise reasonable care to avoid damaging Electric Facilities while performing any activity, 3,6 Notice of Improvements, The City must give Company reasonable notice of plans for improvements to Public Grounds or Public Ways where the City has reason to believe that Electric Facilities may affect or be affected by the improvement, The notice must contain: (i) the nature and character of the improvements, (ll) the Public Grounds and Public Ways upon which the improvements are to be made, (ill) the extent of the improvements, (iv) the time when the City will start the work, and (v) ifmore than one Public Ground or Public Way is involved, the order in which the work is to proceed, The notice must be given to Company a sufficient length of time in advance of the actual commencement of the work to permit Company to make any necessary additions, alterations or repairs to its Electric Facilities, 3,7 Shared Use of Poles, Company shall make space available on its poles or towers for City fire, water utility, police or other City facilities upon terms and conditions acceptable to Company whenever such use will not interfere with the use of such poles or towers by Company, by another electric utility, by a telephone utility, or by any cable television company or other form of communication company, In addition, the City shall pay for any added cost incurred by Company because of such use by City, Any City facilities shall be installed and maintained in accordance with the National Electrical Safety Code (NESC), SECTION 4. RELOCATIONS. 4,1 Relocation of Electric Facilities in Public Ways, Company shall comply with the requirements of Minnesota Rules, Part 7819.3100 and applicable law relating to the relocation of Electric Facilities in Public Ways, If the City determines to vacate a Public Way, the City shall give Company reasonable notice of plants to vacate, If a relocation is ordered within five years or a prior relocation of the same Electric Facilities, which was made at Company expense, the City shall reimburse Company for non-betterment costs on a time and material basis, provided that if a subsequent relocation is required because of the extension of a City Utility System to a previously unserved area, Company may be required to make the subsequent relocation at its expense, 4.2 Relocation of Electric Facilities in Public Ground, City may require Company", at Company's expense, to relocate or remove its Electric Facilities from Public Ground upon a finding by City that the Electric Facilities have become or will become a substantial impairment to the existing or proposed public use of the Public Ground, 4.3 Change to Underground, If required by the City, the Company shall change from aerial to underground, at City expense based on the Company!) time and material costs in any area where: (1) the City requests underground lines and all other lines hereafter are changed from aerial to underground, or (2) any aerial line is changed to underground by the open trench method 4 113 and the City requests the Company to share the trench with telephone and/or cable television, and the Company can share trench at a cost not to exceed the Company!) pro rata share of the cost of the trenching, The City may pay any costs incurred hereunder through a surcharge on the Company's customers located within the City, 4.4 Protects with Federal Funding, Relocation, remova~ or rearrangement of any Company Electric Facilities made necessary because of the extension into or through City of a federally-aided highway project shall be governed by the provisions of Minnesota Statutes, Section 161.46, as supplemented or amended, It is understood that the right herein granted to Company is a valuable right, City shall not order Company to remove or relocate its Electric Facilities when a Public Way is vacated, improved or realigned because of a renewal or a redevelopment plan which is financially subsidized in whole or in part by the Federal Government or any agency thereof, unless the reasonable non-betterment costs of such relocation and the loss and expense resulting therefrom are first paid to Company, but the City need not pay those portions of such for which reimbursement to it is not available, 4,5 No Waiver, The provisions of this franchise apply only to facilities constructed in reliance on a franchise from the City and shall not be construed to waive or modify any rights obtained by Company for installations within a Company right-of-way acquired by easement or prescriptive right before the applicable Public Ground or Public Way was established, or Company's rights under state or county permit, SECTION 5. TREE TRIMMING. Company may trim all trees and shrubs in the Public Grounds and Public Ways of City to the extent Company finds necessary to avoid interference with the proper construction, operation, repair and maintenance of any Electric Facilities installed hereunder, provided that Company shall save the City harmless from any liability arising therefrom, and subject to permit or other reasonable regulation by the City, SECTION 6. INDEMNIFICATION. 6,1 Indemnity of City, Company shall indemnify, keep and hold the City free and harmless from any and all liability on account of injury to persons or damage to property occasioned by the construction, maintenance, repair, inspection, the issuance of permits, or the operation of the Electric Facilities located in the Public Grounds and Public Ways, The City shall not be indemnified for losses or claims occasioned through its own negligence except for losses or claims arising out of or alleging the City's negligence as to the issuance of permits for, or inspection of, Company's plans or work. The City shall not be indemnified if the injury or damage results from the performance in a proper manner:, of acts reasonably deemed hazardous by Company, and such performance is nevertheless ordered or directed by City after notice of Company's determination, 6,2 Defense of City, In the event a suit is brought against the City under circumstances where this agreement to indemnify applies, Company at its sole cost and expense shall defend the City in such suit if written notice thereof is promptly given to Company within a 5 114 period wherein Company is not prejudiced by lack of such notice, If Company is required to indemnify and defend, it will thereafter have control of such litigation, but Company may not settle such litigation without the consent of the City, which consent shall not be unreasonably withheld, This section is not, as to third parties, a waiver of any defense or immunity otherwise available to the City and Company, in defending any action on behalf of the City", shall be entitled to assert in any action every defense or immunity that the City could assert in its own behalf. SECTION 7. VACATION OF PUBLIC WAYS. The City shall give Company at least two weeks prior written notice of a proposed vacation ofa Public Way, Except where required for a City improvement project, the vacation of any Public Way, after the installation of Electric Facilities, shall not operate to deprive Company of its rights to operate and maintain such Electric Facilities, until the reasonable cost of relocating the same and the loss and expense resulting from such relocation are first paid to Company, In no case, however, shall City be liable to Company for failure to specifically preserve a right-of-way under Minnesota Statutes, Section 160,29, SECTION 8. CHANGE IN FORM OF GOVERNMENT. Any change in the form of government of the City shall not affect the validity of this Ordinance, Any governmental unit succeeding the City shall, without the consent of Company, succeed to all of the rights and obligations of the City provided in this Ordinance, SECTION 9. FRANCmSE FEE. 9.1 Fee Schedule, During the tenn of the franchise hereby granted, and in lieu of any permit or other fees being imposed on Company, the City may impose on Company a franchise fee by collecting the amounts indicated in a Fee Schedule set forth in a separate ordinance from each customer in the designated Company Customer Class. The parties have agreed that the franchise fee collected by the Company and paid to the City in accordance with this Section 9 shall not exceed the following amounts. Class Fee Per Premise Per Month Residential Sm C & I - Non-Dem Sm C & I -Demand Large C & I Public Street Ltg Muni Pumping -N /D MuniPumping - Dem $1.60 $2.25 $25.00 $75.00 $6.00 $0.50 $10.00 6 115 9.2 Separate Ordinance. The franchise fee shall be imposed by a separate ordinance duly adopted by the City Council, which ordinance shall not be adopted until at least 60 days after written notice enclosing such proposed ordinance has been served upon Company by certified mail. The fee shall not become effective until the beginning of a Company billing month at least 90 days after written notice enclosing such adopted ordinance has been served upon Company by certified mail, and Company has received any necessary approvals from the Commission, Section 2.5 shall constitute the sole remedy for solving disputes between Company and the City in regard to the interpretation of, or enforcement of, the separate ordinance. No action by the City to implement a separate ordinance will commence until this Ordinance is effective. A separate ordinance which imposes a lesser franchise fee on the residential class of customers than the maximum amount set forth in Section 9.1 above shall not be effective against Company unless the fee imposed on each other customer classification is reduced proportionately in the same or greater amount per class as the reduction represented by the lesser fee on the residential class. 9.3 Terms Defined For the purpose of this Section 9, the following definitions apply: 9.3.1 "Customer Class" shall refer to the classes listed on the Fee Schedule and as defined or determined in Company's electric tariffs on file with the Commission. 9.3.2 "Fee Schedule" refers to the schedule in Section 9.1 setting forth the various customer classes from which a franchise fee would be collected if a separate ordinance were implemented immediately after the effective date of this franchise agreement. The Fee Schedule in the separate ordinance may include new Customer Class added by Company to its electric tariffs after the effective date of this franchise agreement. 9.4 Collection of the Fee, The franchise fee shall be payable quarterly and shall be based on the amount collected by Company during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for electric service in each class. The payment shall be due the last business day of the month following the period for which the payment is made. The franchise fee may be changed by ordinance from time to time; however, each change shall meet the same notice requirements and not occur more often than annually and no change shall require a collection from any customer for electric service ~ excess of the amounts specifically pennitted by this Section 9, The time and manner of collecting the franchise fee is subject to the approval of the Commission. No franchise fee shall be payable by Company if Company is legally unable to first collect an amount equal to the franchise fee from its customers in each applicable class of customers by imposing a surcharge in Company's applicable rates for electric service. Company may pay the City the fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibles, refunds and correction of erroneous billings. Company agrees to make its records available for inspection by the City at reasonable times provided that the City and its designated representative agree in writing not to disclose any information which would indicate the amount paid by any identifiable customer or customers or any other information regarding identified customers. In addition, the Company agrees to provide at the time of each payment a statement summarizing how the franchise fee payment was determined, including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for any uncollectibles, refunds or error corrections. 9.5 Equivalent Fee Requirement. The separate ordinance imposing the fee shall not be effective against Company unless it lawfully imposes and the City monthly or more often collects a fee or 7 116 tax of the same or greater equivalent amount on the receipts from sales of energy within the City by any other energy supplier, provided that, as to such a supplier, the City has the authority to require a franchise fee or to impose a tax. The "same or greater equivalent amount" shall be measured, if practicable, by comparing amounts collected as a franchise fee from each similar customer, or by comparing, as to similar customers the percentage of the annual bill represented by the amount collected for franchise fee purposes. The franchise fee or tax shall be applicable to energy sales for any energy use related to heating, cooling or lighting, or to ron machinery and appliances, but shall not apply to energy sales for the purpose of providing fuel for vehicles. If the Company specifically consents in writing to a franchise or separate ordinance collecting or failing to collect a fee from another energy supplier in contravention of this Section 9.5, the foregoing conditions will be waived to the extent of such written consent. SECTION 10. PROVISIONS OF ORDINANCE. 10,1 Severability, Every section, provision, or part of this Ordinance is declared separate from every other section, provision, or part and if any section, provision, or part shall be held invalid, it shall not affect any other section, provision, or part, Where a provision of any other City ordinance conflicts with the provisions of this Ordinance, the provisions of this Ordinance shall prevail, 10,2 Limitation on Applicability, This Ordinance constitutes a franchise agreement between the City and Company as the only parties}, and no provision of this franchise shall in any way inure to the benefit of any third person (including the public at large) so as to constitute any such person as a third party beneficiary of the agreement or of anyone or more of the terms hereof, or otherwise give rise to any cause of action in any person not a party hereto, SECTION 11. AMENDMENT PROCEDURE. Either party to this franchise agreement may at any time propose that the agreement be amended to address a subject of concern and the other party will consider whether it agrees that the amendment is mutually appropriate, If an amendment is agreed upon, this Ordinance may be amended at any time by the City passing a subsequent ordinance declaring the provisions of the amendment, which amendatory ordinance shall become effective upon the filing of Company's written consent thereto with the City Clerk within 90 days after the date of final passage by the City of the amendatory ordinance, SECTION 12. PREVIOUS FRANCmSES SUPERSEDED. This franchise supersedes any previous electric franchise granted to Company or its predecessor, Passed and approved: ,2010, Mayor Attest: 8 117 City Clerk Date Published: 9 118 Ordinance No. CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA ELECTRIC FRANCHISE FEE ORDINANCE AN ORDINANCE ESTABUSHING AN ELECTRIC SERVICE FRANCHISE FEE ON NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, D/B/A XCEL ENERGY, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING ELECTRIC SERVICE WITHIN THE CITY PURSUANT TO ITS FRANCHISE. THE CITY COUNCIL OF THE CITY OF FARMINGTON, DAKOTA COUNTY, MINNESOTA ORDAINS: SECTION 1. Franchise Fee. In exchange for the franchise granted herein, Northern States Power Company, a Minnesota corporation (NSP) and City of Farmington (City) shall collect from its customers and pay to the City an amount based on the following fee schedule after adjustment for the net write-off of uncollectible accounts and corrections of bills theretofore rendered, and according to the tettns of Section 9 of the Franchise between City and Company: Class Fee Per Premise Per Month Residential Small General- Non-Demand Small C&I Demand Large C&I Public Street Lighting Municipal Pumping Non-Demand Municipal Pumping $ 1.60 $ 2.25 $ 25.00 $ 75.00 $ 6.00 $ ,50 $ 10.00 The amount paid by NSP shall be in lieu of, and NSP shall be exempt from, all other occupation, license, excise or right-of-way pennit fees or taxes which the City of Farmington may impose for the rights and privileges herein granted or for the privilege of doing business within the City of Farmington, and in the event any such fee, charge, license, tax or assessment shall be imposed by the City, the payment to be made in accordance with the provisions of this section shall be reduced in an amount equal to the annual burden of such fee, charge, license, tax or assessment imposed upon the NSP. Ad valorem property taxes imposed generally upon all real and personal property within the City of Farmington shall not be deemed to affect the obligation of the NSP under this section. SECTION 2, Collection of the Fee: The fee is an account-based fee on each premise and not a meter-based fee. In the event that an entity covered by this ordinance has more than one meter at a single premise, but only one account, only one fee shall be assessed to that account. If a premise has two or more meters being billed at different rates, the Company may have an account for each rate classification, which will result in more than one franchise fee assessment for electric service to that premise,. If the Company combines the rate classifications into a single account, the franchise fee assessed to the account will be the largest franchise fee applicable to a single rate classification 1 120 for energy delivered to that premise. In the event any entities covered by the ordinance have more than one premise, each premise shall be subject to the appropriate fee. In the event a question arises as to the proper fee amount for any premise, the Company's manner of billing for energy used at all similar premises in the city will control. NSP shall list the local franchise fee collected from customers as a separate item on bills for utility service issued to customers. If at any time the Minnesota Public Utilities Commission, or other authority having proper jurisdiction, prohibits such recovery, then NSP will no longer be obligated to collect and pay the franchise fee herein contemplated. In addition, the Company may discount or reduce the fee payable for electricity delivered to a specific customer of the Company when it is required to reduce the franchise fee to retain the business of that customer. Modification or reduction of the franchise fee should occur if the fee would cause the customer to cease purchasing electricity from the Company by installing equipment to generate or purchase electricity not subject to the City's franchise fee. SECTION 3. Payment of the Fee. The franchise fee shall be payable by the Company quarterly and shall be based on the amount collected by Company during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for electric service in each class, The payment shall be due the last business day of the month following the period for which the payment is made. No franchise fee shall be payable by Company if Company is legally unable to first collect an amount equal to the franchise fee from its customers in each applicable class of customers by imposing a surcharge in Company's applicable rates for electric service. Company may pay the City the fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibles, refunds and correction of erroneous billings. The Company shall provide at the time of each payment a statement summarizing how the franchise fee payment was detennined, including infonnation showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for uncollectibles, refunds or error corrections. Company shall make its records available for inspection by the City at reasonable times provided that the City and its designated representative agree in writing not to disclose any infonnation which would indicate the amount paid by any identifiable customer or customers or any other infonnation regarding identified customers. SECTION 4. Surcharge, The City recognizes that the Minnesota Public Utilities Commission allows the utility company to add a surcharge to customer rates to reimburse such utility company for the cost of the fee and that Company will surcharge its customers in the City the amount of the fee. SECTION 5, Enforcement. Any dispute, including enforcement of a default regarding this ordinance will be resolved in accordance with the Franchise Agreement. SECTION 6, Effective Date. The franchise fee shall become after publication and ninety (90) days after written notice to the Company, and approval by the Minnesota Public Utilities Commission, as provided in the Franchise, and thereupon collection of the fee for all Customer Classes shall commence at the beginning of the Company's billing month. ADOPTED this _day of ,2010 by the City Council of the City of Fannington. 2 121 CITY OF FARMINGTON By: Todd Larson, Mayor ATTEST: By: Peter J. Herlofsky, Jr., City Administrator Passed and approved by the City Council of the City of Farmington, State of Minnesota on , 2010. Mayor Attest: City Administrator 3 122 CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA SUMMARY OF ORDINANCE NOS. ORDINANCES RENEWING GAS AND ELECTRIC FRANCHISES WITH DAKOTA ELECTRIC ASSOCIATION AND NORTHERN STATES POWER D/B/A XCEL ENERGY, AND ESTABLISHING FRANCmSE FEE SCHEDULES FOR THE PROVISION OF GAS AND ELECTRIC SERVICES BY DAKOTA ELECTRIC ASSOCIATION, MINNESOTA ENERGY RESOURCES CORPORATION, AND NORTHERN STATES POWER D/B/A XCEL ENERGY NOTICE IS HEREBY GIVEN that, on , Ordinance Nos, were adopted by the City Council ofthe City of Farmington, Minnesota, NOTICE IS FURTHER GIVEN that, because of the lengthy nature of Ordinance Nos, , the following summary of the ordinances has been prepared for publication, and that copies ofthe ordinances are available for inspection by the public at the City Clerk's office, NOTICE IS FURTHER GIVEN that the City has renewed franchises with Dakota Electric Association ("DEA") and Northern States Power d/b/a Xcel Energy ("Xcel"), The terms of the two renewal franchises are essentially the same and grant each company a 20 year franchise to transmit and furnish gas or electric energy for public and private use within or through the City, The renewal franchises provide for the orderly location and relocation of facilities within public rights of way and public grounds, relocation and restoration offacilities and rights of way, and abandonment and subsequent removal of abandoned facilities in accordance with Minnesota Rule 7819.3300, The renewal franchises require the provision of field location and mapping information by the companies, Other provisions provide for street openings for repair or other purposes with prior permit of the City or without prior permit in exigent circumstances, tree trimming, company indemnification of the City, and notice procedures for the City's vacation of public ways, Each of the franchises is accompanied by a franchise fee ordinance, and another, separate ordinance extends the fee to Minnesota Energy Resources Corporation, whose franchise to operate in the City is still current. 153818vl 1 123 The franchise fee ordinances impose fees related to gas and electric services as follows: DEA fee schedule: Class Fee Per Premise Per Month Residential Irrigation Small General- Non-Dem General- Demand Public Street Lighting C&I Interruptible $1.60 $2,00 $2,25 $25,00 $6,00 $25,00 MERe fee schedule: Residential Commercial Firm Commercial Interruptible $1.60/Month/Customer $15,00 /Month/Customer $25,00_ /Month/Customer Xcel fee schedule: Class Fee Per Premise Per Month Residential Small General- Non-Demand Small C&I Demand Large C&I Public Street Lighting Municipal Pumping Non-Demand Municipal Pumping $1.60 $2,25 $25,00 $75,00 $6,00 $0,50 $10,00 APPROVED for publication by the City Council of the City of Farmington this 20th day of September, 2010. CITY OF FARMINGTON By: Todd Larson, Mayor 153818vl 2 124 By: Peter J, Herlofsky, Jr" City Administrator Approved as to form this _ day of ,2010, By: Joel J, Jamnik, City Attorney Published in the Farmington Independent the _ day of ,2010, 153818vl 3 125 /3~ Peter Herlofsky From: Sent: To: Subject: Follow Up Flag: Flag Status: CIndy Muller Friday, September 03, 2010 11:27 AM Peter Herlofsky FW: tornado hero Follow up Flagged Cynthia Muller Executive Assistant City of Farmington 430 Third Street Farmington, MN 55024 Tel: 651-280-6803 Fax: 651-280-6899 From: Mary Vanomy l . II r. _ J Sent: Friday, September 03,201010:11 AM To: Cindy Muller Subject: tornado hero Hi Cindy - I am a victim of the recent tornado--our home on Embers avenue was destroyed, As we've been rebuilding though, I have been going through the details of that Friday night when the tornado ripped through our neighborhood, There was a gas leak at the house next to ours, and when we smelled it, we ran across the street to another neighbor's home, A few minutes later, we could see across to our home and a man was standing on the doorstep pounding on our door, We screamed through the storm. for him to come over, which he did, It was our neighbor, Steve (Borntrager), who lives 2 houses behind ours. He had come out in the storm. to see if anyone needed help, heard the gas leak, and came to our home and each of our neighbors houses to evacuate us. After seeing we were okay, he continued on to each house around the gas leak to evacuate. The man has 4 children at home, and yet he risked his life to make sure we were out of our house, as well as all the rest of our surrounding neighbors, We have, of course, thanked him for the courage and compassion for people he hardly even knew (we had just moved into our home last fall), But I am wondering if the City of Farmington or the police department has any special honors for someone like Steve. The man really risked his life for all of us, and I feel like he should be recognized for that. If it's just by us in our neighborhood, that's fine, but just thought I would ask if the City has any program that could add to this recognition, I wasn't sure who to contact, so I'm hoping if you're not the right person to receive this email, you can either let me know, or forward it on to the appropriate department. thank you very much, Mary Vanorny 1 126