HomeMy WebLinkAbout02.22.05 Council Minutes
COUNCIL MINUTES
PRE-MEETING
February 22, 2005
1. CALL TO ORDER
The meeting was called to order by Acting Mayor Fogarty at 6:30 p.m.
Members Present:
Members Absent:
Also Present:
Fogarty, McKnight, Pritzlaff, Wilson
Soderberg
Joel Jamnik, City Attorney; David Urbia, City Administrator;
Robin Roland, Finance Director; Kevin Carroll, Community
Development Director; Randy Distad, Parks and Recreation
Director; Lee Mann, Director of Public Works/City Engineer; Lisa
Shadick, Administrative Services Director; Brenda Wendlandt,
Human Resources Director; Lee Smick, City Planner; Cynthia
Muller, Executive Assistant
2. APPROVE AGENDA
MOTION by McKnight, second by Wilson to approve the Agenda. APIF, MOTION
CARRIED.
3. CITIZEN COMMENTS
4. COUNCIL REVIEW OF AGENDA
a) Council Appointments to LMC and AMM Policy Committees
City Administrator Urbia provided a list of policy committees. Council chose the
following LMC committees they would like to attend:
Improving Fiscal Futures Policy Committee - City Administrator Urbia,
Councilmember Pritzlaff
Improving Local Economies Policy Committee - Community Development
Director Carroll, Councilmember Wilson
Personnel: Human Resources and Data Practices Policy Committee -
Councilmember McKnight
AMM Policy Committees:
Housing & Economic Development - Councilmember Fogarty
Municipal Revenue & Taxation - Councilmember McKnight
Transportation & General Legislation - Councilmember Pritzlaff
Metropolitan Agencies - Councilmember Wilson
City Administrator Urbia will forward dates of AMM Policy Committees to
Council.
Council and staff reviewed the regular Council meeting agenda.
Council Minutes (Regular)
February 22, 2005
Page 2
5. STAFF COMMENTS
a) Discussion of Sign Ordinance Violations
There has been an escalation in the number of signs that violate the code. Staff
asked Council what their philosophy is regarding enforcing this code. Staff asked
if Council wanted staff to inform the businesses directly of the violation, or wait
until a resident complaint is received. Staff reviewed the code regulations. Staff
has identified the sign violators. For the minor violations, staffwill send out a
letter. For the serious violations, they will contact the owner and invite them in
for a meeting and give them the letter in person. Council agreed staff should
enforce the ordinance and agreed with staffs recommendation. Staffwill also
provide solutions to the businesses.
b) Council Items for March 1,2005 Joint Council/School Board Meeting
City Administrator Urbia received a list of agenda items for possible discussion at
the March 1 meeting. Council and staff discussed the items. This will be
discussed further during the regular Council Meeting.
6. ADJOURN
MOTION by McKnight, second by Pritzlaffto adjourn at 6:58 p.m. APIF, MOTION
CARRIED.
Respectfully submitted,
~?V7~
~hia Muller
Executive Assistant
COUNCIL MINUTES
REGULAR
February 22, 2005
1. CALL TO ORDER
The meeting was called to order by Acting Mayor Fogarty at 7:00 p.m.
2. PLEDGE OF ALLEGIANCE
Acting Mayor Fogarty led the audience and Council in the Pledge of Allegiance.
3.
ROLL CALL
Members Present:
Members Absent:
Also Present:
Audience:
Fogarty, McKnight, Pritzlaff, Wilson
Soderberg
Joel Jamnik, City Attorney; David Urbia, City Administrator;
Robin Roland, Finance Director; Kevin Carroll, Community
Development Director; Randy Distad, Parks and Recreation
Director; Lee Mann, Director of Public Works/City Engineer; Lisa
Shadick, Administrative Services Director; Brenda Wendlandt,
Human Resources Director; Tim Gross, Assistant City Engineer;
Cynthia Muller, Executive Assistant
Chris and Tom Gindorff, Karen Neal, The Dakota Dreamcatchers,
Troy and Matt Corrigan, Dan and Trevor Ausen, Pat and Adam
Wrucke, Shelly Eldridge
4. APPROVE AGENDA
Councilmember Wilson pulled item 7i) Authorize Use of Eminent Domain Ash Street
Project.
Councilmember Pritzlaff pulled items 7k) Approve Easement Acquisition - Ash Street
Project and 71) Approve Bills.
City Administrator Urbia proposed to delete item 12a) Council Appointments to LMC
and AMM Policy Committees as this was handled during the pre-Council Meeting.
MOTION by Pritzlaff, second by Wilson to approve the Agenda. APIF, MOTION
CARRIED.
5. ANNOUNCEMENTS
6. CITIZEN COMMENTS
Ms. Elise Schroeder, President of Dakota Dreamcatchers 4-H Club, gave an update on the
2005 chair project for the Rambling River Center. Their goal is to raise $9,000 to buy
150 chairs. They have cash and pledges for 135 chairs. They thanked the sponsors for
their donations. On Sunday, February 27, they will be hosting a pancake breakfast at the
American Legion to raise the remaining amount needed. Council congratulated them on
their good work.
Council Minutes (Regular)
February 22, 2005
Page 2
7.
CONSENT AGENDA
MOTION by McKnight, second by Pritzlaffto approve the Consent Agenda as follows:
a) Approved Council Minutes (2/7/05 Regular)
b) Received Information Parks and Recreation Commission Minutes - Parks and
Recreation
Approved School and Conference - Parks and Recreation
Adopted RESOLUTION R15-05 Accepting Donation to the Reuse-A-Shoe
Program - Parks and Recreation
Approved Capital Outlay - Parks and Recreation
Approved Appointment Recommendation - Human Resources
Adopted RESOLUTION R16-05 Approving No Parking Restriction Ash Street
Project - Engineering
h) Received Information Capital Outlay - Public Works
j) Approved Change Order - Main Street Phase 1 Project - Engineering
APIF, MOTION CARRIED.
c)
d)
e)
f)
g)
i) Authorize Use of Eminent Domain Ash Street Project - Engineering
City Engineer Mann provided a history ofthe Ash Street project. The easterly
utility construction was done in 2004. The actual street reconstruction is in the
County's CIP for 2005. Construction will start in April, and in order for this to
happen some permanent and temporary easements are needed. The quick take
process is 90 days from date of notice. Staff provided Council with a spreadsheet
showing the easements needed. Councilmember Pritzlaff and engineering staff
have met with a property owner regarding some trees that are on the City right-of-
way and some that are on the line. Staffwill continue to work with the owner.
Councilmember Pritzlaffthen asked about a sidewalk on the north side of Ash
Street. City Engineer Mann stated a sidewalk has been designed into the plan and
all property owners adjacent to the construction were invited to an open house in
November 2004. Staff has communicated with residents through a public
hearing, the November open house, one-on-one meetings with the property
owners, and there will be a future open house. When appraisals and surveys have
been received letters have been sent to residents informing them the project is
coming, an easement is needed, a meeting will be arranged, and the letter refers to
the quick take process. Councilmember Wilson felt the sidewalk will be useful
during the fair and anytime families are going for a walk. Councilmember
McKnight asked staff to do what they can to save the trees. Councilmember
Pritzlaff noted the resident said if the trees were moved back 5 feet, there would
not be enough room to build a house. City Engineer Mann stated the lot is large
enough to be buildable. Whether the existing improvements would be allowed to
stay is questionable. The Planning division will have to review this situation.
Mr. Shane Haugen, 1021 6th Street, noted everyone is in favor ofthe sidewalk for
one week during the fair. He stated he would be more than willing to let each
Councilmember take their turn shoveling the sidewalk in the winter when no one
is using it. He stated it is a waste oftime for the City to install 175 ft. of sidewalk
on his property for one week during the year. If the City wants it, the City should
Council Minutes (Regular)
February 22, 2005
Page 3
maintain it. City Engineer Mann stated staffhas discussed that along county
roads trails are typically maintained by the City and this is a sidewalk along a
county road so it is open for discussion. Staff will bring this to Council as a
discussion item. Mr. Haugen stated he would like an answer as he has been
fighting this for 6 months. Councilmember Fogarty stated she has been an
advocate for that sidewalk for a multitude of reasons. There is an elementary
school in the area. Mr. Haugen stated the children do not walk east-west, they
walk north-south.
Mr. Dick Graelish noted when there is heavy rain, he has to pump the parking lot
for the apartment building.
MOTION by Pritzlaff, second by McKnight, adopting RESOLUTION R17-05
authorizing condemnation of property for public uses with the "quick take"
provision. APIF, MOTION CARRIED.
h) Capital Outlay - Public Works
(Councilmember Pritzlaffpulled item 7k in error).
Councilmember Pritzlaff asked what the amount of the vehicle is. City Engineer
Mann stated as long as items have been within the budgeted amount, the amount
has not been included in the memo. If Council would like this information staff
will provide it in the future. The vehicle was budgeted at $31,000 and came in
$2,000 below that. Council agreed they would like this information in the future.
k) Approve Easement Acquisition - Ash Street Project - Engineering
MOTION by Wilson, second by McKnight approving the easement acquisition-
Ash Street project. APIF, MOTION CARRIED.
I) Approve Bills
Councilmember Pritzlaff asked about the amount for the Nextel phones and if that
amount was standard. Finance Director Roland stated that is the monthly dollar
amount for the Nextel bill. The cost two years ago was around $48,000 for the
year. Since then, Administrative Services Director Shadick redid the contract
with Nextel and took advantage of a savings. The yearly amount now is
approximately $30,000. MOTION by McKnight, second by Wilson to approve
the bills. APIF, MOTION CARRIED.
8. PUBLIC HEARINGS
a) Approve Therapeutic Massage License - Administration
Ms. Kelly Helleson has submitted an application for renewal of a Therapeutic
Massage License at Reach for the Stars, 308 Oak Street. MOTION by
McKnight, second by Wilson to close the public hearing. APIF, MOTION
CARRIED. MOTION by Pritzlaff, second by Wilson approving a Therapeutic
Massage License for Kelly Helleson at 308 Oak Street. APIF, MOTION
CARRIED.
Council Minutes (Regular)
February 22, 2005
Page 4
b) NPDES Phase II Annual Report - Engineering
Assistant City Engineer Tim Gross presented the NPDES Phase II Annual Report
and Storm Water Pollution Prevention Program for 2004. The report includes
information on the NPDES Phase II overview, SWPPP overview, status of
compliance with permit conditions, appropriateness ofBMP's in the SWPPP, and
progress in achieving measurable goals. The report must be submitted to the
MPCA by March 10,2005. MOTION by Pritzlaff, second by McKnight to close
the public hearing. APIF, MOTION CARRIED. MOTION by Wilson, second
by Pritzlaff approving the report. APIF, MOTION CARRIED.
9. AWARD OF CONTRACT
10. PETITIONS, REQUESTS AND COMMUNICATIONS
a) Adopt Ordinance - Signs for Non-Residential Uses in Residential Zoning
Districts - Community Development
Currently the code allows one monument sign in residential districts. Staff
proposed for permitted nonresidential uses, one freestanding monument sign be
allowed per street frontage if an access drive is present. The Planning
Commission has approved this recommendation. MOTION by McKnight,
second byPritzlaffto adopt ORDINANCE 005-523 amending Section 10-6-3(B)
2 subd. C to allow one sign per street frontage when an access drive is present for
a nonresidential use in the residential zoning district. APIF, MOTION
CARRIED.
b) Adopt Resolution - Revising 2004 Budget - Finance
General fund revenues are 95% of the budgeted revenue for 2004. Shortfalls
came in the areas of licenses and permits and charges for services. Previously,
staff discussed with Council the difference in building permit revenue for 2004.
Staff modified the revenue projections at mid-year. The original budget was for
440 building permits and was revised to 300 at mid-year. At the end of the year
there were 227 building permits. Other areas exceeded budgeted revenues,
however the total budgeted revenue of $6,052,824 was not met. Expenditures far
exceeded the budget primarily due to personnel costs. There were additional
staffing levels. Additional stafftime was needed to finalize a backlog of building
permits. The police department had an exceptional amount of personal leave used
by officers. There was also a computational error in the original budget which
has been corrected for the 2005 budget. The fire department was over budget due
to additional state aid. The streets division was over budget due to where salaries
were budgeted and where hours were actually worked. Parks and recreation was
over due to overtime, comp time and seasonal staffing required for programs.
Councilmember Wilson had asked if some if this was due to the Dew Days
celebration. Staff cannot quantify what the actual dollar value is, but that would
have contributed to overtime and staffing budgets. Staff is reviewing how to
quantify this with a dollar amount. The preliminary analysis shows a net
reduction to the fund balance of $647,469. This would bring the fund balance to
Council Minutes (Regular)
February 22, 2005
Page 5
21 % of annual operating expenditures. Council has tried to follow a policy of
35%-45% fund balance. Two years ago the City had a 43% fund balance, and at
the end of2003, the City was at 35%.
The proposed resolution would adjust the budget to reflect what was discussed at
the workshops in June and October. One solution, as a one time only occurrence,
was to put all of the franchise fee revenue into the general fund for 2004, which
was done. The budget does not reflect another solution which is taking all of the
investment income revenue from the City's pooled portfolio and splitting it
between the general fund and the water fund. That split of75% to the general
fund and 25% to the water fund would help alleviate the revenue shortfall. There
would then be a 25% fund balance. The auditors felt this would be a reasonable
response to this situation. Council and staff discussed various areas of the budget.
Councilmember Wilson would like to revisit the building permit numbers mid-
year. Finance Director Roland explained that mid-year 2005 when budgets are
revised, staffwill ask Council to make it official and actually revise the reports
that are distributed. When the budget was prepared for 2005, staffput less
reliance on non-tax forms of revenue. The 2005 budget assumes there will be less
than 350 new homes built. Councilmember Pritzlaff asked if in 2005 the fund
balance would be low again, and are we over-staffed. Finance Director Roland
replied staff has discussed delaying hiring positions. Rather than hire at the
beginning of the year, some positions will be hired during the year, saving money.
MOTION by Pritzlaff, second by Wilson to adopt RESOLUTION R18-05
revising the 2004 budget to reflect an allocation of investment income as
discussed at the October budget workshop. APIF, MOTION CARRIED.
11. UNFINISHED BUSINESS
a) Adopt Resolution - Sale of Refunding Bonds - Finance
Ms. Shelly Eldridge of Ehlers & Associates, stated they received three bids for the
sale of $2,640,000 General Obligation Improvement Refunding Bonds. Piper
J affray & Company was the low bidder at a net interest rate of 3 .49%. The City's
bond rating from Moody's remains at an A2 rating. The bond issue was reduced
to $2,595,000. The interest savings amounts to $143,000 over ten years. Finance
Director Roland explained refunding of bonds was started in January 2004. Four
have been done since then. The total savings for those four issues over the next
ten years amounts to $619,684. MOTION by Wilson, second by Pritlzaffto
adopt RESOLUTION R19-05 awarding the sale of the $2,595,000 G.O.
Improvement Refunding Bonds of2005A to Piper Jaffray. APIF, MOTION
CARRIED.
12. NEWBUSINESS
13. COUNCIL ROUNDTABLE
Council Minutes (Regular)
February 22, 2005
Page 6
Councilmember Pritzlaf/: Finance Director Roland did a good job and we have things
to look forward to. He thanked Community Development Director Carroll for his work
on the GRE issue. Councilmembers McKnight and Pritzlaff, and City Administrator
Urbia also attended the GRE meeting and it did not go the way they wanted it to. He
suggested Council set a workshop for informational purposes. There are some questions
he would like answered. This will be placed on the next Council Agenda.
Councilmember Wilson: Thanked Community Development Director Carroll for his
work on the GRE issue. He appreciated the work Finance Director Roland did on the
budget. He reminded everyone ofthe Mayoral Charity Ball on March 5, at St. Michael's
Church. This is a non-City sponsored event. 100% of the proceeds will go to the
Community Action Council. He encouraged residents to attend.
City Administrator Urbia: Reminded Council March 31 is the State of the Cities
Legislative Conference. There is a transit meeting Friday, at noon, at the Met Council
offices. Councilmember Fogarty explained they are assuming the transit authority is
advocating bringing other cities into the taxing district. The Apple Valley Council has
suggested issuing parking tickets to only Apple Valley residents. Councilmember Wilson
will try to attend. As far as the agenda for the Council/School Board meeting for March
1, Councilmember Pritzlaffwanted to look at working with the school as far as
recreation. Councilmember Wilson wanted to keep the agenda focused and shorter. He
looked forward to the opportunity to meet with the school board. He hoped residents
would attend and would like to see packets or at least agenda items available for residents
who come. Councilmember McKnight agreed with Councilmember Wilson and he
would like to set a schedule for the rest of the year. Councilmember Fogarty would like
to talk about the infrastructure issues. She wanted to have a good discussion.
Community Development
Director Carroll: Gave a presentation on the outcome of the GRE power line
meeting. The route is from Lakeville to Empire Township. The northern route was
originally proposed by GRE. This is a 115,000 volt transmission line to meet service
needs in the area. The substation will be behind Northern Natural gas, east ofthe
industrial park. The line would go north along Akin, through undeveloped property
owned by Giles Properties, through the undeveloped Rother property to Hwy 3 and 66. It
would proceed south along Hwy 3 on the east side to the Dairy Queen and go east along a
former railroad right-of-way. It would go between the bus garage and a storage building
and continue east through Empire along 21 oth Street and connect to the substation. This
was proposed by Great River Energy in March 2004. Several public hearings have been
held since that time giving people the opportunity to suggest other routes. An alternate
route was proposed by a land owner, who did not want the power line through his land.
He proposed the power line go from Akin Road, south across school district property
through some ballfields, a new path would be cut through Rambling River Park to cross
the river, go behind Pellicci Hardware, across the railroad tracks and along Pine Street,
on the south side of Marigold Foods and the bowling alley, and then cut between Peerless
Plastics and Dakota County Lumber to Hwy 3 where it would hook up with the previous
route. Various other routes have been discussed. There was a meeting of the
Council Minutes (Regular)
February 22, 2005
Page 7
Environmental Quality Board last Thursday to approve a route. At the meeting they
approved the alternate route on a vote of 10-4. The EQB rejected the route the City had
endorsed. The City made it clear which route they supported and that the City opposed
the alternate route. For those residents who have property along Pine Street or in the
downtown area, they have to be prepared that in the near future, people will be
approaching them to acquire easements across their property and then power lines will be
constructed along this route. The City has sent a series of notices to 80-85 property
owners affected by this route. Community Development Director Carroll then discussed
three things that happened at the end of the process that may have affected the outcome.
GRE spoke in favor of their route for the first 6 or 7 months ofthe process. They assured
staff that they had studied a variety of alternatives through Farmington and that this made
the most sense. Staff also recommended the previous Council support this route, and
they did. Over the course of the process, some of the staff members ofthe EQB
developed a preference for the alternate route. At this point they established a position of
neutrality and decided they would let the EQB decide what to do. A week before the
decision, on February 8, GRE representatives indicated publicly that they were
supporting the alternate route. They determined this alternate route was cheaper. Staff
questioned this, as in September 2004 an environmental assessment was done by GRE
and as part of that they weighed the relative cost ofthe routes. Their own documents
indicate they estimated the downtown route to be $250,000 more expensive than the
original route. An administrative law judge took testimony and concluded the same
thing. A week before the decision was made, GRE re-examined their numbers and not
only is this not $250,000 more expensive, but $500,000 less expensive. This is a
$750,000 swing in cost. Staff asked for numbers to support that swing. Staff received
these numbers late in the afternoon the day before the final decision. The EQB said they
made some errors in estimating the cost. One explanation was the number of jumpers
needed, another structure that had been left out that was needed on the line which
accounted for 1/3 ofthe $750,000. The rest was accounted for by a decision they made at
the end of the process that they could put different types of power poles along the route.
They decided that they would install guyde structures from the poles, which means they
can use less expensive poles. These would be placed in low or no traffic areas. Staff felt
undeveloped property was a no traffic area. Will guyde wires be placed in the ballfields
or in the woods? The guyde wires run 55 ft. from the base of the pole. This means their
usual 35 ft. easement on each side of the pole, would be extended 20 ft further into the
woods on both sides to accommodate the guyde wires. This has an environmental impact
that no one had the opportunity to discuss before the final decision was made. Another
thing that may have swayed the outcome was one ofthe last people to speak at the
meeting on Thursday was an attorney for GRE. He indicated he was concerned about the
possibility that some might try to piece together portions of the route and get it over 10
miles. The 210th Street route was the shortest route. Empire Township residents
proposed alternate routes that were longer. As long as the utility company proposes a
route that is 10 miles or less, they do not have to go to the Public Utilities Commission
for a Certificate of Need. This would add more time to the process. The attorney from
GRE said of the various combinations, four ofthe six would not work for GRE because it
puts the route over 10 miles. It would take another 9 months to go through the PUC and
hold a public hearing. This is important, because they would not be able to get the new
Council Minutes (Regular)
February 22, 2005
Page 8
power line energized by 2006. Ifthis is not done, there is the possibility of brown outs or
black outs in the area. There was not an opportunity for staff to respond. GRE created
the time frame within which the issue had to be addressed. There was a meeting in
January 2003 by the power company talking about the system upgrade needed. They
talked about the siting process saying they desire siting consensus with communities prior
to permit application, which they had at the beginning ofthe process. Staff also wanted
to mention the administrative law judge said the EQB need not feel bound by the 10 mile
limitation imposed by the Certificate of Need program. There is a question as to whether
the project could be viewed as two separate projects in which case any route would easily
be under 10 miles. Even if it is viewed as one project, the only way the 10 mile
limitation would impact the selection of the best route would be if reliability was
seriously threatened by the additional time needed to obtain a Certificate of Need. The
Administrative Law Judge does not believe that the applicants have made a sufficient
showing of threatened unreliability such that the board must pick a route less than 10
miles in length. The additional delay that flows from requiring a Certificate of Need does
run a risk if other facilities should go out of service as the result of a tornado, etc. That
risk has not been shown to be so substantial that this project must be rushed through.
Therefore, the 10 mile threshold for the Certificate of Need program is not determinative
of the route selected. Reliability is a factor, but not a decisive one in this case. Staff feels
the EQB rejected that opinion ofthe Administrative Law Judge. There was very little
discussion among the EQB board members before they made a decision. There were
statements made that Farmington wanted to push the power line out of Farmington and
into a nearby township. Looking at the map, Farmington is the host community for the
substation and all but a small portion of the route is in the City, and there is a possibility
that small portion ofland will be annexed into the City. Empire Township has not
opposed the route. Staffhas done a good job of keeping residents informed of public
hearings, through mailings, through newspaper articles, etc. Councilmember Pritzlaff
commended Community Development Director Carroll for all of his hard work. City
Administrator Urbia asked about the relationship between Great River Energy and Xcel
Energy and Dakota Electric. Community Development Director Carroll replied all the
power companies will benefit from this new substation. GRE is a power supplier to
Dakota Electric. Xcel Energy is a separate entity. Councilmember Fogarty stated
Empire did not have anything to say about it because they know that portion will end up
in the City. She thanked Community Development Director Carroll for his hard work
and Councilmembers Pritzlaff and McKnight for attending the meetings. Community
Development Director Carroll noted the line will go through Rambling River Park. He
did not know how many trees would come out, but it is a corridor of 70 - 110ft. wide.
He listened to hours of testimony from residents along 210th Street, and GRE talked about
bouncing the line from one side of the road to the other to avoid trees. But no one was
concerned about the park. They talked about which route made the most sense from an
environmental standpoint. The body that made the final decision is the Environmental
Quality Board. The EQB evidently is not sufficiently concerned about the environmental
quality of the park.
City Engineer Mann: Assistant City Engineer Tim Gross in addition to doing an
excellent job with the City has decided to mentor students in the Future Cities
Council Minutes (Regular)
February 22, 2005
Page 9
competition in Apple Valley. They created a model city and made a presentation to a
group of judges. Their gro..up took second in state. He commended Mr. Gross for going
above and beyond the call of duty and doing very important work with the future of our
young people.
Acting Mayor Fogarty: She had a spreadsheet from a Councilmember in Lakeville
that she will e-mail to Finance Director Roland. There seems to be a conflict between
out-state cities and the metro area. The spreadsheet shows the amount of aid lost by
selected cities. The Lakeville Councilmember has heard that the metro area has not taken
the hit hard enough, that out-state has taken it harder. The spreadsheet shows that is not
true. She wanted staff to add Farmington to the spreadsheet. She had her first meeting
with the Vermillion River Watershed Joint Powers Planning Commission and was told on
March 13, on Channel 11, the Ron Shara MN Bound show will do a segment on the
Vermillion River through this area.
14. ADJOURN
MOTION by McKnight, second by Pritzlaffto adjourn at 9:15 p.m. APIF, MOTION
CARRIED.
Respectfully submitted,
:?~~/~
Cynthia Muller
Executive Assistant