HomeMy WebLinkAbout09.19.16 Council Minutes CITY OF FARMINGTON
CITY COUNCIL MINUTES
REGULAR MEETING
SEPTEMBER 19,2016
1. Call to Order
Mayor Larson called the meeting to order at 7:00 pm.
2. Pledge of Allegiance
Caden from Troop 118 led those in attendance in the Pledge of Allegiance.
3. Roll Call
Present-Larson, Bartholomay, Donnelly, Bonar and Pitcher
Absent-None
Staff Present-Administrator McKnight, Human Resources Director Wendlandt, Finance Director
Hanson, Community Development Director Kienberger, Engineer Schorzman, Parks and
Recreation Director Distad, Planning Manager Wippler and Attorney Poehler
4. Agenda
Motion by Bartholomay,second by Pitcher to approve the agenda as presented. APIF, motion
carried.
5. Announcements/Commendations
None
6. Citizen Comments
None
7. Consent Agenda
Motion by Bartholomay,second by Bonar to approve the consent agenda:
a) Approve Minutes of the September 6, 2016 City Council Meeting-Administration
b) Approve Minutes of the September 6, 2016 City Council Work Session-Administration
c) Approve Minutes of the September 12, 2016 City Council Work Session-Administration
d) Approve Appointment to the Economic Development Authority-Community
Development
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e) Approve Vermillion River Crossings Sixth Amendment to the Development Contract-
Community Development
f) Adopt Ordinance 2016-718 Amending Title 6, Chapter 7 of the Farmington City Code as
it relates to Weeds-Community Development
g) Approve Bills-Finance
APIF, motion carried.
Councilmember Bonar asked staff to provide more detail on the joint meeting of the city
council and planning commission that took place on September 12, 2016. Community
Development Director Kienberger discussed the Orchards at Fairhill development. The
development team reviewed their concept with both groups at the meeting and have a planned
start date of next spring.
8. Public Hearings
A. Vacate Drainage and Utility Easements-Hy-Vee Incorporated
Planning Manager Wippler reviewed the request from Hy-Vee Incorporated to vacate existing
drainage and utility easements within the Vermillion River Crossings plat.
Hy-Vee is the in process of re-platting Lot 1, Block 1 and Outlots A and C of the Vermillion River
Crossings plat for purposes of constructing a grocery store and a convenience store with gas
and car wash. Due to new lot line configurations with the re-plat, certain easements will have
to be vacated from the original plat.
Mayor Larson opened the public hearing. No one in attendance spoke at the public hearing.
Motion by Bartholomay,second by Bonar,to close the public hearing. APIF, motion carried.
Motion by Bartholomay second by Bonar,to adopt resolution 65-2016 vacating the drainage
and utility easements located over and around the common parcel line between the parcels
legally described as Outlot A and Lot 1, Block 1 Vermillion River Crossings except the northerly
39.85 feet and the southerly 10 of said easements. APIF, motion carried.
B. Vermillion River Crossings Deferred Special Assessments; Hy-Vee Business Subsidy
Agreement
Community Development Director Keinberger presented a business subsidy agreement
between the City of Farmington and Hy-Vee Incorporated.
As a part of the original development of Vermillion River Crossings (VRC), assessments were
levied against the parcels to fund the development infrastructure currently in place with the
understanding that the city would enter into a tax abatement agreement to reimburse the
developer for the assessments when improvements were made to the property. Over the past
11 years,the properties in VRC have gone back to the banks and sat largely undeveloped.
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Payments on the bonds levied to fund the infrastructure have been incorporated into the
budget each year. Entering into a business subsidy agreement satisfies the intent of the original
development agreement and will not require additional taxies be levied.
In order the facilitate a market rate sale of the property, it is recommended that the city council
approve a business subsidy agreement with Hy-Vee related to the outstanding assessments to
the current Outlots A and C of the Vermillion River Crossings Plat. Outlot A currently has an
assessment balance of$353,737.72 while Outlot C has a balance of$1,704,993.51. State law
requires a business subsidy agreement be executed to remove the assessments from the
property.
Hy-Vee has agreed to create at least 20 full-time jobs at a wage of$13.00 per hour or more,
excluding benefits within two years. On August 26, 2016 the Economic Development Authority
unanimously voted to recommend the city council approve a business subsidy agreement with
Hy-Vee, Incorporated.
Councilmember Bonar commented that this action falls in line with the action of the city council
in place 11 years ago that agreed to abate the taxes on this development to pay for the
infrastructure. All other city councilmembers agreed with this comment.
Phil Hoey representing Hy-Vee thanked the city council and city staff for the way in which he
was treated and the willingness of the city to work with Hy-Vee. They will be back in front of
the city council in the future with a final plat when it is appropriate.
Mayor Larson opened the public hearing. No one in attendance spoke at the public hearing.
Motion by Donnelly,second by Bonar,to close the public hearing. APIF, motion carried.
Motion by Bonar, second by Donnelly,to approve a business subsidy agreement with Hy-Vee,
Incorporated related to deferred assessments on Outlots A and C of the Vermillion River
Crossings development provided they provide at least 20 jobs paying wage of at least$13.00
per hour. APIF, motion carried.
9. Award of Contract
None
10. Petitions, Requests and Communications
A. Vermillion River Crossings Third Addition Preliminary Plat
Planning Manager Wippler presented the preliminary plat for Vermillion River Crossings Third
Addition that was submitted by Hy-Vee, Incorporated. This is a re-plat of the western portion
of the original Vermillion River Crossings plat which was approved in 2005.
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The boundary area consists of 18.923 acres and will be divided into two lots and two outlots.
The plat is located within the Spruce Street Commercial zoning district,which requires a
minimum lot size of one acre. The lots sizes are proposed as follows:
• Lot 1, Block 1-2.641 acres (proposed convenience store)
• Lot 1, Block 2-9.806 acres(proposed grocery store site)
• Outlot A-4.971 acres (future development site)
• Outlot B-1.505 acres (future development site)
The planning commission reviewed the preliminary plat on August 16, 2016 and held a public
hearing concerning the application. The commission voted 5-0 to recommend approval of the
Vermillion River Crossings Third Addition preliminary plat with the following contingencies:
1. The satisfaction of any planning and engineering comments.
2. The execution of a development agreement.
All city councilmember expressed that they were pleased that this project was moving forward.
Motion by Bartholomay,second by Pitcher,to approve resolution R66-2016 approving the
Vermillion River Crossings Third Addition preliminary plat with the following contingencies:
1. The satisfaction of any planning and engineering comments.
APIF, motion carried.
B. Refinancing Opportunites-2007A,2008A,2010C and 2010D
Finance Director Hanson and Shelly Eldridge from Ehlers reviewed information on the five
series of bonds that are eligible for redemption beginning on February 1,2017. City staff has
been working on this issue with the city council over the past year. The eligible bonds include:
Existing Purpose Existing Amount Issuer Proposed Proposed Recent
Bond Interest Rate Eligible for Contribution Refinancing Refinancing Market
for Bonds to Refunding Amount Rates for
be Refunded Refunding
Bonds
2008A Elm Street 4.0%to 4.1% Combined $2,580,000 2016A $3,605,000 1.0%to
2008B 195th Street 3.65%to Amount plus a bonds and 1.55%
Extension 3.9% $6,390,000 $300,000 $300,000
2010C Walnut Street 3.0%to interfund interfund
3.75% loan loan*
2007A City Hall 4.0%to 4.2% $6,480,000 $0 2016B $6,600,000** 1.05%to
2.05%
2010D Ice Arena 2.7%to 3.1% $405,000 NA Interfund NA
Improvements Loan
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*The city will use prepayments and fund available in the Road and Bridge Fund that would have otherwise been
used later to pay debt service at a higher interest rate to make up the difference.
**The amount of the new bond issuance is higher than the amount of the bonds to be redeemed to finance the
costs incurred to pay the underwriter's to sell the bonds and the related cost of issues incurred in issuing the debt.
The estimated savings on the combined new 2016A issue is estimated at$515,000. The
estimated savings on the new 2016B issue is$795,000.
Councilmembers Donnelly, Pitcher and Bonar thanked staff for their work on this issue and for
keeping them informed over the past year. Councilmember Bartholomay asked how much we
have saved in interest with bond refinancing over the past few years. City staff will provide the
city council with that information this week.
Motion by Bonar, second by Pitcher,to approve the following items:
• Adopt resolution R67-2016 providing for the sale of$3,605,000 General Obligation
Refunding Bonds,Series 2016A,to refinance the previously issued 2008A, 2008B and
2010C bonds. APIF, motion carried.
• Adopt resolution R68-2016 providing for the sale of the 2016B bonds to refinance the
previously issued 2007A bonds. APIF, motion carried.
• Adopt resolution R69-2016 authorizing an internal loan from the Storm Water Truck
Fund to refinance the 2010D bonds and issue the notice of redemption for February 1,
2017. APIF, potion carried.
11. Unfinished Business
A. Franchise Agreement with Frontier Communications
Human Resources Director Wendlandt reviewed the draft franchise agreement with Frontier
Communications. Earlier this year the Apple Valley, Rosemount and Farmington Cable
Commission discussed a possible franchise agreement with Frontier. In response to Frontiers
request the city published a notice of intent to consider a franchise as required by state statute.
On September 7,2016 the cable commission recommended the draft franchise agreement to
all three cities. Cable commission attorney Bob Voss reviewed the process involved in getting
to this point.
Councilmember Pitcher commented that competition is good.
Mayor Larson asked about any comments received in the 30 days after the initial action on this
issue. Charter Communications shared their comments in writing with the city council at that
meeting.
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Motion by Donnelly, second by Pitcher,to approve the following items:
• Adopt resolution R70-2016 approving the Frontier cable franchise application. APIF,
motion carried.
• Approve ordinance 2016-719 granting a franchise to Frontier Communications. APIF,
motion carried.
• Adopt resolution R71-2016 approving a summary publication of ordinance 2016-719.
APIF, motion carried.
12. New Business
A. Central Maintenance Facility Locker Room Repair Project
Parks and Recreation Director Distad presented quotes for the repair of the Central
Maintenance Facility locker rooms.
This facility opened in 2002 and since that time has experienced deterioration in the locker
rooms especially in the tile and sheetrock areas of the restroom and shower areas. Quotes
were received from four contractors-
1. Lindstrom Restoration $44,562.82
2. Titus Construction $46,892.00
3. Rutledge Construction $51,900.00
4. Randahl Construction $74,835.00
Councilmember Bartholomay stated that the city council is aware of this issue and the reason
we set money aside for building maintenance.
Motion by Donnelly, second by Bonar,to approve an agreement with Lindstrom Restoration for
the repair of the Central Maintenance Facility locker rooms at a cost of$44,562.8,with
payment made from the Building Fund. APIF, motion carried.
13. City Council Roundtable
Donnelly-Tonight was a good meeting with Hy-Vee, bond refinancing and a new cable franchise
agreement.
Bonar-Commented that he was also excited about the Orchards at Fairhill project that is on the
horizon for 2017.
McKnight-Reminded the city council that the groundbreaking for the Legacy of Farmington
Senior Housing project is scheduled for October 6, 2016. Homecoming is scheduled for next
week in Farmington.
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Kienberger-Shared that Hy-Vee was very happy with the ease of working with Farmington.
Distad-Information on the park facilities referendum will be mailed to residents next week.
Larson-Encouraged everyone to shop local.
Adjourn
Motion by Donnelly, second by Pitcher to adjourn the meeting at 7:48 p.m. APIF, motion
carried.
Respectfully Submitted
David McKnight, City Administrator
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