HomeMy WebLinkAbout04.16.12 Council Minutes COUNCIL MINUTES
REGULAR
April 16, 2012
1. CALL TO ORDER
The meeting was called to order by Mayor Larson at 7:00 p.m.
2. PLEDGE OFALLEGIANCE
Mayor Larson led the audience and Council in the Pledge of Allegiance.
3. ROLL CALL
Members Present: Larson, Bartholomay, Donnelly, Fogarty,May
Members Absent: None
Also Present: Joel Jamnik, City Attorney;David McKnight, City Administrator;
Teresa Walters,Finance Director;Randy Distad,Parks and
Recreation Director;Kevin Schorzman, City Engineer; Cynthia
Muller,Executive Assistant
Audience: Ruth Novitzke,Virginia Carey, Tom Flanagan, Tom Jensen, Kay
Bennett,Mary Christensen
4. APPROVE AGENDA
Councilmember Bartholomay pulled items 7g)Amend On-Sale Liquor License Big
Sombrero and 7i)Approve Arena Use Agreement for comments. Mayor Larson pulled
item 7d)Accept Happy Harry's Furniture Donation for comment. City Administrator
McKnight pulled item 10b)Approve Re-allocation of Fundraising and Donation Revenue
to Future Rambling River Center Building and Grounds Improvements.
MOTION by Fogarty, second by May to approve the Agenda. APIF,MOTION
CARRIED.
5. ANNOUNCEMENTS
Mr. Tom Jensen, 701 5th Street,thanked the City for re-seeding the boulevard along 5th
Street,but the material underneath is bad with rocks and roots. He asked that the City not
re-seed until new material is placed. He asked what will be done when the grass doesn't
come up again. Property owners paid$6,000 and it should be done properly. They work
hard on their lawns,but the grass is not coming up. He asked the City to re-place the sod
and put dirt down first. Staff will review the issue. Mr.Jensen would like to see the
specs for the re-seeding project. If the specs were followed,then they need to be
changed. Mayor Larson noted this has been discussed and staff will be changing the
specs. Staff will review the sod on the project.
6. CITIZEN COMMENTS
7. CONSENT AGENDA
MOTION by Fogarty, second by May to approve the Consent Agenda as follows:
a) Approved Council Minutes(4/2/12 Regular)(4/9/12 Workshop)
6
Council Minutes(Regular)
April 16,2012
Page 2
b) Received First Quarter 2012 New Construction Report—Building Inspections
c) Received Local Storm Water Model Update/Extension—Natural Resources
d) Adopted RESOLUTION R16-12 Accepting Happy Harry's Furniture Donation
to Rambling River Center—Parks and Recreation
Mayor Larson thanked them for their donation.
e) Approved Product Test Agreement with Toro Company—Parks and Recreation
f) Received Information Hydrant Flushing—Municipal Services
g) Amended On-Sale Liquor License Big Sombrero Mexican Restaurant-
Administration
Councilmember Bartholomay suggested we charge a fee for license amendments.
h) Adopted RESOLUTION R17-12 Approving All Hazard Mitigation Plan-Police
i) Approved Arena Use Agreement—Parks and Recreation
Councilmember Bartholomay noted staff did a great job on this item.
j) Approved Bills
APIF,MOTION CARRIED.
8. PUBLIC HEARINGS
9. AWARD OF CONTRACT
10. PETITIONS,REQUESTS AND COMMUNICATIONS
a) Accept Rambling River Center Improvement Project Ceremonial Check—
Parks and Recreation
In 2009,the old City Hall was converted into the Rambling River Center. Senior
center members and staff have held 39 fundraising events and have completed
their commitment. They had five years to reach their goal of$90,000,but
completed it in just over two years and raised$93,356.01.
c) Approve Farmington Youth Hockey Association Agreement—Parks and
Recreation
Farmington Youth Hockey has agreed to pay$10,000/year for ten years,with
$5,000 going to arena operations and$5,000 to capital improvements. In
exchange for this,FYHA will be moved up on the priority list for ice rental time
behind the City and the high school. Tri-County Figure Skating was not able to
match this contribution, so they will be 5th on the list for ice time.
Councilmember May stated at the last meeting staff was to draft an agreement
with FYHA and the school district with a timeline for funding. This agreement
has to do with scheduling. There is no way the figure skating club can come up
with this money. She asked if whoever gives more money gets priority. She also
asked if Mayor Larson and Councilmember Fogarty should vote because they
have children in the hockey program. Councilmember May suggested alternating
priority year to year. Parks and Recreation Director Distad noted the City was
approached by FYHA. This agreement is different from funding for a
dehumidification system. These funds will be used for both operations and
improvements to the arena and could be used for a dehumidification system.
7
Council Minutes(Regular)
April 16,2012
Page 3
Councilmember Fogarty noted these are two different issues. This item goes back
to when we did the arena improvements and FYHA offered to contribute to the
cost. She did not know if we should give priority to those who are able to pay
more. However,FYHA is the largest user and they have a vested interest in the
arena. They are getting priority because they are the largest user. They should be
at the front of the line and they conceded to the City and the school for priority.
Also, she and Mayor Larson do not need to abstain from voting as they are not
impacted financially.
Councilmember Donnelly asked about the number of hours used by the skate club
versus FYHA. Staff noted in 2011 FYHA used 750 hours;the skate club used 70
hours. Councilmember May felt this will kill the skate club program. It should
not be a matter if willingness to pay, but the ability. Staff stated FYHA has 314
members;the skate club has 14 members.
Councilmember May asked what happens if FYHA cannot pay. There should be
something in the agreement regarding non-payment. MOTION by Bartholomay
to table this item to the next meeting to add language in the agreement. City
Attorney Jamnik stated the consideration for priority in scheduling is in exchange
for money. If there is no money,there is no priority. The City controls the
priority, so no additional language is needed. Councilmember Bartholomay
withdrew his motion. MOTION by Fogarty, second by Donnelly to approve the
agreement with FYHA to allow FYHA to have a higher priority of scheduling ice
rental time at the arena. Voting for: Larson,Bartholomay, Donnelly,Fogarty.
Voting against: May. MOTION CARRIED.
d) March 2012 Financial Report-Finance
Revenues are at 16.37%of budget and expenses are at 19.9%of budget.
Revenues exceeded expenditures in the special revenue funds. Revenues
exceeded expenditures at the downtown liquor store by$25,053;and at the Pilot
Knob store by$54,477 this month.
Councilmember May noted in the Rambling River Center expenses always exceed
revenues. This year she wanted Council to determine an acceptable number for
this difference. She also asked that Council be provided with information on how
we track inventory at the liquor stores.
e) Adopt Resolution—Approve Development Contract Riverbend 4th Addition-
Engineering
The original plat for Riverbend had 23 lots. Due to a decrease in the size of the
lots plus a reconfiguration of the plat,there are now 31 lots. Staff will send
Council a copy of the new plat showing the reconfiguration. MOTION by
Fogarty, second by Bartholomay to adopt RESOLUTION R18-12 approving the
execution of the Riverbend 4th Addition Development Contract and authorizing its
8
Council Minutes(Regular)
April 16,2012
Page 4
signing contingent upon the conditions and fmal approval by the Engineering
Division. APIF,MOTION CARRIED.
f) Approve Agreement with Dakota County for Utility Permits-Engineering
Several cities and Dakota County have been working on a combined utility
permitting system that would allow applicants to go to the County's website and
apply for both City and County permits for utilities. Each participating City will
pay a one-time fee of$2,000 to the County to reimburse them for staff time
necessary to make the changes that were required to the County's permitting
system. The City will also pay an annual fee of$533.33 to cover the cost of the
County processing permits as well as hosting and maintaining the system. This
fee is based on the average number of permits expected from participating cities
each year.
Councilmember May asked if this increases the overall cost and how do we cover
the County fee. City Engineer Schorzman explained this saves us time and we
charge $80/permit. The time savings will cover the cost of the fee. We have the
lowest utility fee in the county and we will be adjusting our fee schedule.
Councilmember Bartholomay asked what we received in revenue last year for
utility fees. The City received$5,200 and we will not lose that. Our fee would be
$533/year so we will still collect$4,700 in revenue. The City will still review and
approve the permits. If the City were to do this on our own, it would cost five to
10 times as much.
MOTION by Fogarty, second by Donnelly to approve the agreement with Dakota
County for the"One Stop Permit System." APIF,MOTION CARRIED.
11. UNFINISHED BUSINESS
a) Approve Second Amendment to Dispersing Agreement Vermillion River
Crossings-Engineering
This amendment sets forth the agreement for the disbursement of the interest
portion of the escrow. The City will receive all funds designated as interest
($202,160.93),and in exchange,the City will issue a Certificate of Completion to
the current owner. The owner would no longer be obligated to any of the
requirements of the development contract. If Council approves this amendment,
staff would recommend completing the sidewalk on the west side of Dushane
Parkway between the CDA project and McDonald's at a cost of$40,000-
$50,000; intersection lighting for$75,000- $100,000; future sidewalk/trail work
for$50,000- $55,000.
Councilmember May asked where this money is coming from. City Engineer
Schorzman explained there is $1 million in escrow from the developer for
amenities for the original construction. When it was time to complete Dushane
Parkway,that was completed using$850,000 from the escrow. There is now
9
Council Minutes(Regular)
April 16,2012
Page 5
$202,000 remaining in escrow. The bank now owns the property and they are
asking for the City to say they are done with the development contract.
Councilmember Fogarty asked about the shortage on the original amenities. Staff
explained there were a lot of amenities in the original contract such as washed
concrete,median landscaping,bike racks, etc.
Councilmember May asked if these were in the development agreement,how is it
not enforceable. City Attorney Jamnik noted the amenities were not included in
the approved drawings with the development contract. Councilmember Fogarty
recalled as they went through the bankruptcy, some amenities fell through so as to
not commit City staff to maintenance.
Councilmember May thought Council was to get an update from the developer.
Now we are taking the money and they can wash their hands. She has heard
nothing from the owner and would like to table this for more information from the
owner. She would like to hear about any prospects, is there anything in the near
future,what are their plans, etc. She felt Council does not have enough
information to not hold them accountable for future assessments. City Engineer
Schorzman explained staff had a meeting with the developer and was told no one
buys land when it is tied to a development contract. It is understandable Council
wants to get as much out as possible,but we have$202,000 and that's it. Staff
agreed assessments are a big issue,but no matter what, $202,000 is the limit. The
money would be set aside.
Councilmember Bartholomay asked that Council be provided with the original
development contract. What are the pro's and con's for the assessments and does
the decision to approve the agreement make the situation better or worse. City
Engineer Schorzman explained this agreement sets up the mechanism for them to
waive their rights to the assessment. Adding to the assessment makes the problem
worse. The$1.8 million owed in assessments is not forgiven. The large parcel
has assessments for$1.478 million and the outlot along CSAH 50 has$306,000 in
assessments. If the City requires the developer to fulfill more than$202,000 it
will make the assessment number bigger. Staff's recommendation is to keep it at
$202,000. The assessments are not going away;they are deferred. If the large
parcel is developed,there would be a new development contract and installation
of the sidewalk in that area can be included.
Councilmember May asked why are we taking responsibility off the developer.
City Attorney Jamnik explained in 2009 the developer went into default. Nothing
was done for two seasons so the City got direct access to the dispersing agreement
for Dushane Parkway. The City built that road using those funds. We now need
to negotiate further what needs to be done to close out the project. That is what
this is;that we agree we can complete the rest of the project for$202,000 and the
developer is free and clear.
10
Council Minutes(Regular)
April 16,2012
Page 6
Councilmember Bartholomay asked if we approve this, can we make a concept
plan to attach to future development. Staff stated the sidewalk can be a similar
design,and have lighting at intersections and show that on the plans and what we
want done on the outlots to dress them up.
Councilmember May wanted to hear more from the owner. Her option is to do
nothing. City Administrator McKnight noted staff has met with the developer and
he will ask them to attend an EDA meeting.
Councilmember Fogarty felt it would be beneficial for Council to see the original
concept plan. The design was to be a walkable area. Staff will provide the
original contract and design to Council. Mayor Larson asked what they would
have to do to finish the project. Staff noted that would be whatever Council wants
completed. The escrow money would be used for this. MOTION by May,
second by Bartholomay to table this item until Council hears from the interested
parties. APIF,MOTION CARRIED.
12. NEW BUSINESS
13. COUNCIL ROUNDTABLE
Councilmember Donnelly: Thanked the volunteers at the Rambling River Center for
their fundraising accomplishment.
Councilmember Fogarty: Hydrant flushing started today. Curbside clean-up starts
Saturday. Last Saturday the Farmington Royalty had a spaghetti dinner and raised
$2500. Dew Days buttons will be on sale as of Friday. Residents can receive discounts
from businesses for wearing a button.
Councilmember Bartholomay: Thanked the Rambling River Center volunteers. At
their retreat Council will be discussing the train whistle issue and he would like to receive
resident input. As far as liquor store inventory,he would like to look at accurate
numbers. Staff should update the old ways and take a hybrid approach and combine
business acumen with a financial approach. Regarding curbside clean-up he asked if any
comments had been received regarding refrigerators not being secured. Owners should
take the doors off. Residents can sign up for the Citizens Police Academy by May 4,
2012. On April 18,2012,Magnificent Me Day Care will hold a ribbon cutting. There
will be a ribbon cutting at Pellicci Ace Hardware on May 3, 2012. As a Marine vet,he
wanted to thank the high school students for forming a high school yellow ribbon
chapter.
Councilmember May: Thanked the seniors for their fundraising efforts. She asked
if any more planning has been done regarding the old Rambling River Center. City
Administrator McKnight noted staff will be obtaining a second estimate on abatement
and will put the building up for sale.
11
Council Minutes(Regular)
April 16,2012
Page 7
City Engineer Schorzvnan: Due to the weather and curbside clean-up,work on Walnut
Street will be delayed until next week. Regarding the Lake Julia parking lot project, staff
is applying to the Vermillion River Watershed for storm water treatment in the area.
Educational signs will be posted.
Mayor Larson: Thanked Happy Harry's Furniture for the donation of$691 to the
Rambling River Center. Dakota County Lumber will have a deck expo April 26,2012.
Curbside clean-up this Saturday is in the downtown area. He encouraged residents to
shop local.
14. ADJOURN
MOTION by Fogarty, second by Bartholomay to adjourn at 8:48 p.m. API F,MOTION
CARRIED.
Respectfully submitted,
Cynthia Muller
Executive Assistant
12