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HomeMy WebLinkAbout02.19.13 Council Minutes COUNCIL MINUTES REGULAR February 19, 2013 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: Larson, Bartholomay, Donnelly Members Absent: Bonar, Fogarty Also Present: Andrea Poehler, City Attorney;Randy Distad, Parks and Recreation Director;Robin Hanson, Finance Director;Kevin Schorzman, City Engineer;Todd Reiten, Municipal Services Director;Brenda Wendlandt, Human Resources Director;Cynthia Muller, Executive Assistant Audience: Dick Orndorfl; Tony Marvets, Debra Kosh,Tom LaBeau, David Domack,Brian Wheeler 4. APPROVE AGENDA Councilmember Donnelly pulled item 7b) Farm Lease Agreement for separate vote. Councilmember Bartholomay asked to comment on items 7h) Authorize Advertisement for Bids Automated Garbage Truck and 7i)Approve Curbside Cleanup Day Agreement. Mayor Larson pulled 7j) Approve Annual Adjustment for Non-Represented Employees for separate vote. MOTION by Bartholomay, second by Donnelly to approve the Agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS a) Dakota County Commissioner Mike Slavik Commissioner Slavik was elected to the county commissioner seat formerly held by Joe Harris. Commissioner Slavik serves on several boards and commissions. The county will be doing a major renovation on the Farmington Library this year. They are expected to be closed from late November—May. Farmington and the county are in discussions to lease space in City Hall to hold some programs and provide a library service. The county will be constructing its fifth regional park this year in White Tail Woods near Empire. It will be a 456-acre park. It is expected to open in early summer 2014. The 195th Street project is in the CIP plan for 2014,but there have been discussions to do the project in 2015 to allow use of county staff and cut costs. 6 Council Minutes(Regular) February 19,2013 Page 2 6. CITIZEN COMMENTS Mr.Dick Orndorff:, 617 Spruce Street, stated we are trying to get people to shop here. He has noticed the graffiti on the Burger King building and wondered what people think when they see that and the sidewalk is not shoveled. He asked if the property owner has any responsibility to maintain it. It is a real detriment to the City. Mayor Larson noted the owners are from Chicago and they have been contacted. It has recently been leased. Mr. Orndorff stated there has been discussion on completion of housing projects and cleaning up items stored in yards. Last week we had banners and Channel 11 here talking about chickens. He asked if this was acceptable to people in the City to have junk laying in yards for years, and houses unfmished? Mayor Larson stated we are currently looking at an ordinance to speed up that process. He asked staff to send Mr. Orndorff a letter with an update on this issue. Mr. Orndorff stated the City enforces water usage with citations. He suggested issuing similar citations for not having work completed. Last week a point was raised about rats and chickens. The kids did a good job. His neighbor has a chicken coop in the backyard that has been there since the 1940's. The pen, fence and chicken coop are still there. Inside the fence are two 55-gallon drums, and stuff in the shed. He cautioned the City to be careful with allowing this as it all comes around in the end. What happens with the chickens when they die? Are there provisions in the ordinance for that? They do get lice and cholera. You will have other animals coming after them. Will they be inspected and the number allowed enforced? We need to be very careful with this issue. He noted we will be seeking bids for a new automated garbage truck. He thought at one time it was discussed to get out of the garbage business. Mayor Larson stated Council has decided to stay in the business. Mr. Orndorff asked where we stand with plastic,temporary garages. There are four within six blocks of here. He asked if you need a permit and suggested looking into this. 7. CONSENT AGENDA MOTION by Bartholomay, second by Donnelly to approve the Consent Agenda as follows: a) Approved Council Minutes(2/4/13 Regular)(2/11/13 Workshop) c) Adopted RESOLUTION R6-13 Accepting Donations Rambling River Center— Parks and Recreation d) Approved School and Conference—Parks and Recreation e) Approved School and Conference—Fire Department 1) Approved School and Conference—Fire Department g) Approved School and Conference—Fire Department h) Adopted RESOLUTION R7-13 Authorizing Advertisement for Bids Automated Garbage Truck—Municipal Services Councilmember Bartholomay confirmed this is only for going out for bids and not approving a purchase of a garbage truck. i) Adopted RESOLUTION R8-13 Approving Curbside Cleanup Day Agreement— Municipal Services Councilmember Bartholomay asked about the yearly cost for each household for this service. Staff replied it is approximately$10/household. k) Adopted RESOLUTION R10-13 Approving AFSCME Clerical, Technical, Professional Unit Settlement—Human Resources 7 Council Minutes(Regular) February 19,2013 Page 3 1) Adopted RESOLUTION R11-13 Approving AFSCME Maintenance Unit Settlement—Human Resources m) Adopted RESOLUTION R12-13 Approving Reassessment PID 147700029090- Engineering n) Approved MN Shade Tree Short Course-Engineering o) Approved Bills APIF,MOTION CARRIED. b) Approve Farm Lease Agreement—Parks and Recreation This has to do with a lease agreement for farming the park land in Jim Bell Park and Preserve. MOTION by Larson, second by Bartholomay to approve the Farm Lease Agreement with Tim Braun and that the money from the annual lease payment be placed in the Park Improvement Fund for future park and/or trail improvements. Voting for: Larson,Bartholomay. Abstain: Donnelly. MOTION CARRIED. j) Adopt Resolution—Approve Annual Adjustment for Non-Represented Employees—Human Resources This was to approve a 1%wage increase for non-represented employees effective January 1, 2013. MOTION by Bartholomay, second by Donnelly to adopt RESOLUTION R9-13 approving the salary adjustments effective January 1, 2013, for non-represented city employees. Voting for: Bartholomay, Donnelly. Abstain: Larson. MOTION CARRIED. 8. PUBLIC HEARINGS a) Approve On-Sale Liquor License Carbone's Pizza and Sports Bar- Administration Mr. Tony Marvets has submitted an application for an On-Sale Liquor and On- Sale Sunday Liquor License for Carbone's Pizza and Sports Bar at 10 N 8th Street. MOTION by Bartholomay, second by Donnelly to close the public hearing. APIF,MOTION CARRIED. MOTION by Bartholomay, second by Donnelly to approve an On-Sale Liquor License and an On-Sale Sunday Liquor License for Carbones Pizza and Sports Bar at 10 N 8th Street. APIF,MOTION CARRIED. b) Approve 3.2 On-Sale Beer and Wine License for Baldy's BBQ- Administration Mr. Brian Wheeler has submitted an application for a 3.2 On-Sale Beer and Wine License for Baldy's BBQ located at 122 Elm Street. MOTION by Donnelly, second by Bartholomay to close the public hearing. APIF,MOTION CARRIED. MOTION by Donnelly, second by Bartholomay to approve a 3.2 On-Sale Beer and Wine License for Baldy's BBQ at 122 Elm Street. APIF, MOTION CARRIED. 9. AWARD OF CONTRACT 8 Council Minutes(Regular) February 19,2013 Page 4 10. PETITIONS,REQUESTS AND COMMUNICATIONS a) Amend Ordinance—Modifying Billing Requirements for Utility Bills and Establishment of Rates and Charges for Utility Systems-Finance The City invoices for utility services for water, solid waste, sewer, storm water and street lights on a quarterly basis. Currently for rental properties,the City invoices the tenant and provides the property owner with a courtesy copy of the statement. Finance staff spends a significant amount of time updating accounts for tenant changes. After discussions with other cities, information provided by the League of Minnesota Cities, and discussions with the City Attorney, staff learned the City may enact an ordinance making landlords responsible for the tenant's utility charges. On November 19, 2012, staff recommended the ordinance be updated to have all utility accounts in the name of the property owners. At that time, Council wanted staff to provide owners notice of this change and an opportunity to comment. In January a letter was sent to property owners of rental properties informing them of the proposed change. A total of 486 letters were mailed, representing 347 rental accounts carried in the tenants name and 139 accounts in the property owner's name. Staff has received feedback from 28 people, with only one of those being a tenant,and the rest property owners. Staff provided a summary of comments received,with the primary comment wanting to better understand the meaning of the letter and how the final decision would be communicated to owners. Some owners changed their accounts from the tenant's name to the owner's name. Some noted this is how accounts are handled in other cities. Rental properties represent 7%- 8%of the utility accounts and require 30%of staffs time. In addition, other finance and public works staff spend time on rental accounts. Given the amount of time spent on accounts with tenants changing,the difficulties with owners and tenants communicating in a timely and accurate fashion, and state statute provides for a more efficient means of managing these accounts, staff is recommending a change. Staff proposes to invoice the property owner,with the account in the owner's name. The tenant could still pay the bill,but the tenant would need to provide the correct account number. A change from November is in the implementation of the plan. The change would still be effective April 1, 2013, however, it would only apply to new accounts established after that date or any account that receives a notice of delinquency after that date. Rental accounts presently in the tenant's name would not change until that tenant moves or the account becomes delinquent. In addition to the account name change,the amendment also refers to how rates are established. The change may result in more timely collection of utility bills, reduce staff time and allow better utilization of staff time to service the remaining 90%of utility accounts. Mayor Larson stated over the past few years we have cut a lot of staff. One thing Council has asked of remaining staff is to fmd ways to become more efficient. This proposal does that. He thanked staff for this proposal. Mr. John Kimmel, Lakeville, owns three rental properties in Farmington, and also in Prior Lake,Lakeville and Burnsville and none of those cities handle utility 9 Council Minutes(Regular) February 19,2013 Page 5 accounts as proposed. When he buys rental properties, he makes sure they do not have a common area. He cannot pro-rate the energy usage in a common area. He makes sure the tenant can take all the utilities in their name. That way they are responsible for their own utilities and can use as much as they want because they have to pay for it. With this change, it would completely change that. The tenant could use as much as they want and the landlord would have to pay for it. He suggested having a meter reading fee, or an activation for the account; something that could be passed on to the tenant to give the City financial relief and also solve the issue for the landlords. The proposed solution solves everything for the City and solves nothing for the landlord. He noted pro-rating is illegal because he cannot estimate how much water a tenant uses when they move out and how much the next tenant doesn't use. All he can do is fully charge the tenant after the meter was read and he knows the tenant was in possession of the property 100% of the time. Mr. Tom LaBeau,Lakeville, owns three rental properties in Farmington, as well as Prior Lake and Lakeville, and those cities do not handle utility accounts as proposed. His concern is the provision that says readings will not be done as tenants move out. As a landlord, how does he handle that? He cannot estimate what they use. If a tenant moves out,he has to have an honest way to interpret what their usage was. As far as putting it in the name of the landlord, he can understand the administrative hassle, but the ability to have the meters read when tenants move out is part of the City's responsibility; especially when you have water,garbage, storm sewer and street lights. Finance Director Hanson stated as far as the meter reading,the landlord and/or the tenant could read the meter and the fees and charges are on the City's website to determine how much to allocate. The street light fee is a flat fee. Another alternative would be if the City wanted to charge a fee and get a meter reading, it would be just a meter reading. Once the account is in the owner's name we cannot run a final bill. We would have to close the account and re-open it again. The cheaper way for both the tenant and the landlord would be to read the meter or assess a meter reading fee. Mr. LaBeau would be in favor of that as there would be a third party involved so there would be no argument as to the actual amount,as long as it is a reasonable fee. He has obtained three distressed properties, cleaned them up, and has good tenants, so there is a benefit to the City. Finance Director Hanson stated the City would only provide the reading. The landlord would still have to determine the actual amount to be charged. Ms.Debra Kosh, 19973 Dover Ct, also owns a rental property. As landlords they also pay more in taxes. If you add this change on and do a blank fee added to their rent, if you are renting you don't have that much money. How much you have available at the first of the month is very tight. She has good tenants, but they cannot afford higher rent. She checked with Rosemount, Apple Valley and Lakeville and none of them do this. That is the target market for looking for renters. The only people that could afford this would be Section 8, and she does 10 Council Minutes(Regular) February 19,2013 Page 6 not want to bring in people from outside this market. If we have 486 tenants,the City knows who is in those homes. If we make it so they are more transient and the City doesn't know who they are,that makes her more uncomfortable that they do not have a foothold in Farmington. She felt the meter readings are important and it is cleaner. Just because you can do it, it doesn't make it right or fair. Based on what the City says, it doesn't change the budget; it makes it more efficient. She would love to make her job more efficient, but if it is part of her job,which this is,this should stay the way it is. Mayor Larson clarified the tenants cannot afford more,but aren't they paying it anyway? Ms.Kosh stated they have checks from the 15th of the month, but not from the first of the month. They don't have the extra cushion at the first of the month. If a tenant moves out in January, and she does not receive the bill until March,there is no way to know how much they owed. She has to return the deposit within 30 days. It is not right to put the onus on landlords who try to help the City by having good tenants. Mayor Larson noted it is tough on both sides. Staff spends an enormous amount of time switching bills out and is it fair to all taxpayers if 60%of our time is spent with dealing with 8%of the accounts. Ms. Kosh stated that would not go away even with this change,because even if you bill the landlord, you will still have the time of who paid it and did they pay it. The only part going away is the meter reading and closing and opening accounts. It is also the lack of communication between the tenant and the landlord. Finance Director Hanson noted other cities doing this include Brooklyn Center, Coon Rapids, Crystal, Eden Prairie, Hutchinson,New Hope,Richfield, South St. Paul, Woodbury and Bloomington. Councilmember Bartholomay suggested having a fee for meter reading. One of the public works staff would have to do the reading. Finance Director Hanson added with the scenario we would just be getting the meter reading and not preparing the bill. We would pass the reading on to the owner so they could do their allocation. Mr.Kimmel noted that does not solve the problem, because we do not get a bill until two months later. If the tenant moves in April, and we don't get the bill until June, getting the reading in April does no good when he does not know what to charge. Staff noted the fees are on the website and they are consistent with the previous month's bill. Mr. Kimmel stated so we are given a number and he has to calculate it and the tenant has to believe him that it is calculated correctly. Every City has renters, so there is more work with renters. Charge a fee. Councilmember Donnelly was not a fan of more fees. He would like to have input from missing Councilmembers before we enact a new ordinance. He understood the comments about the billing coming late and the tenant is gone. Staff noted they would have that from the meter reading. Councilmember Donnelly stated then the tenant would have to pay before he leaves. 11 Council Minutes(Regular) February 19,2013 Page 7 Finance Director Hanson noted out of 486 accounts we have 140 already in the owner's name. She has not talked with them about how they are handling it. Councilmember Donnelly noted other property owners have figured out how to do this and maybe we could share that with owners that have a concern or have it available for them. MOTION by Bartholomay, second by Donnelly to table this for staff to obtain more information. APIF,MOTION CARRIED. Staff expects to bring this to the March 4, 2013, Council meeting. b) Consider Recycling Contract Extension—Municipal Services The recycling contract with Dick's Sanitation is due to expire at the end of 2013. They are asking if the City would like to negotiate an extension to the current contract or if Council would like to request proposals for a new contract. Dick's Sanitation has been handling recycling for the City since 1995. RFP's were requested in 1995 and 2001. Option one is to negotiate an extension to the current contract or option two is to go out for request for proposals for recycling services. Councilmember Donnelly asked why we are not required to go out for bids. City Attorney Poehler noted because it is for professional services. Councilmember Donnelly noted Dick's Sanitation has done a good job. Mayor Larson stated it is nice to go out for bids, but is it worth it to risk problems. Right now it is flawless and there are no complaints. Councilmember Bartholomay felt Council does have a due diligence and a request for proposal is not out of the ordinary especially since we have not done one in 12 years. He has not received any complaints, but it shows we are doing due diligence as Council and staff. We have asked staff to do this with other things, such as cleaning contracts. We need to hold the line as we are doing with other items in the City and go out for proposals. Mayor Larson liked option one and see if we can negotiate. If we can't get a fair price, then go out for bid. It is hard to find a sub-contractor that does as good a job as Dick's Sanitation has done for the City. Mr. David Domack, Dick's Sanitation,has been doing this for 27 years. The City of Farmington has a unique situation. There are a lot of different intricacies they have learned working with staff. We are a team and a lot has to do with everything from the City cleanup to determining single stream recycling is the way to go, and working with the education and know special needs of customers. Every time they have negotiated they have given a better value and have worked with the efficiencies of automation. There are too many intricacies where they work well together to argue over a dime vs. a nickel. They will provide good negotiations and welcome the opportunity. 12 Council Minutes(Regular) February 19,2013 Page 8 Councilmember Donnelly agreed with negotiating an extension to the contract. If we don't think it is fair,then go out for bids. Councilmember Bartholomay asked how will we know if it is fair? What do we have to compare it to? Staff can compare it to rates with other cities. We do things differently, so it is never apples to apples. Councilmember Bartholomay noted sometimes competition is good. We have asked other staff to go out for RFP's and to not do it here shows we are inconsistent. Councilmember Bartholomay added that Councilmember Bonar expressed his desire to go out for proposals. MOTION by Larson, second by Donnelly to select option one and direct staff to negotiate an extension of the recycling contract with DSI/LSI and bring the negotiated contract for review and approval by the City Council. Voting for: Larson,Donnelly. Voting against: Bartholomay. MOTION CARRIED. c) Adopt Resolution—Approve Plans and Authorize Bids T113 East Frontage Road Sanitary Replacement Project-Engineering The estimate for the project is$117,300 which is more than the estimate. An additional contingency was added due to the grant from the Met Council requiring a prevailing wage provision in the bids. Staff has met with each of the impacted properties to receive any concerns. There was a need for access to one of the properties. MOTION by Bartholomay, second by Donnelly to adopt RESOLUTION R13-13 approving the plans and specifications and authorizing the advertisement for bids for the TH3 East Frontage Road Sanitary Replacement Project. APIF,MOTION CARRIED. 11. UNFINISHED BUSINESS 12. NEW BUSINESS 13. COUNCIL ROUNDTABLE Councilmember Donnelly: Thanked Commissioner Slavik for attending the meeting. Councilmember Bartholomay: Thanked Commissioner Slavik for attending the meeting. Mayor Larson: Thanked Commissioner Slavik for attending the meeting. He reminded everyone to shop local. 14. ADJOURN MOTION by Bartholomay, second by Donnelly to adjourn at 8:11 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 13