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HomeMy WebLinkAbout09.02.03 Council Minutes COUNCIL MINUTES REGULAR September 2, 2003 1. CALL TO ORDER The meeting was called to order by Mayor Ristow at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE Mayor Ristow led the audience and Council in the Pledge of Allegiance. 3. ROLL CALL Members Present: Members Absent: Also Present: Audience: Ristow, Fitch, Fogarty, Soderberg Cordes Joel Jamnik, City Attorney; Dan Siebenaler, Interim City AdministratorlPolice Chief; 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; Jim Atkinson, Assistant City Planner; Cynthia Muller, Executive Assistant Charles Weber, Kris Akin, Michael Lindberg, Kevin Gibbons, Tim LaBeau, Bruce Conner, Paul Hardt, James Karlin, Douglas Bonar, Mike Heinzerling, Randy Pedersen 4. APPROVE AGENDA The interview for Personnel Decisions International was added to the agenda after Council Roundtable. Councilmember Fogarty pulled Council Minutes 8/18/03 Regular to abstain from voting. MOTION by Soderberg, second by Fogarty to approve the Agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS 6. CITIZEN COMMENTS Mr. Bruce Conner, 19901 Langford Lane, stated on Friday the Akin House will be having a Grand Opening. Mr. Conner invited residents and especially city staff. He stated they have received tremendous cooperation from the city. They are really pleased with all the input the city has had. Especially the Inspections Department and Building Official Ken Lewis. Mr. Conner stated if Building Official Lewis ever leaves he is going to whatever city he goes to, because he is really tremendous. Mr. Conner wanted to extend an invitation to the Ribbon Cutting by the Chamber of Commerce. The Open House will be Council Minutes (Regular) September 2, 2003 Page 2 from 10 a.m. - 2 p.m. Mr. Conner stated for some time he has wanted to come down during Citizen's Comments and say a few things about what he has seen as a citizen of the city for 14 years. He stated he is thrilled. Some things he does not agree with, but as far as city government works, Farmington can be very proud. Interim City Administrator Siebenaler has become a newspaper idol. The article in the paper last week was well deserved. Mr. Conner thought Interim City Administrator Siebenaler should be called the Farmington Ambassador to the world because he worked the Olympics and the State Fair for many years. Farmington can be proud oftheir Police Department. Last summer Mr. Conner was riding a motorcycle and ran out of gas. Before he could get off the motorcycle, an officer was behind him asking ifhe wanted help or wanted to call for help. Mr. Conner stated that says a lot. They have had minor things with their children and the officers have always been very gracious, very friendly, and gone beyond the call of duty. He is very impressed with the Police Department. A friend of his had a stroke and saw the response ofthe Fire Department and Rescue. They are a volunteer unit and they are fantastic. Fire Marshal John Powers has helped at the Akin House with various things, and Building Official Ken Lewis with advice and direction on things. It was much appreciated. About 8 or 9 years ago, he broke the wheel on his garbage can. You wonder how city government works and if this even ties in. He was looking for a new wheel and thought the city would know where to get one. He spoke to a lady in the Solid Waste and Recycling department. He called on a Wednesday and was told to leave his garbage can out on Thursday and someone would fix it. Mr. Conner said he would fix it himself, but was told there was no charge and someone would come out. Mr. Conner thought it would be sitting there for a month. Thursday he came home from work and there were two new wheels on his garbage can. He did not have to call a dozen times, one call did it. Ifwe can get city government to change a wheel on a garbage can with one call, he thinks that is doing a tremendous job. There are problems in the city, but it will all work out. Mr. Conner stated the things that have happened recently with the City Council and the City Administrator shows city government working tremendously well. Citizens can stand up here and ask for the Mayor's resignation and not fear retaliation. Councilmembers can disagree with one another. City staff can even disagree among themselves. Mr. Conner felt that was healthy for a city and thought the city is working very well from his perspective. Mr. Conner thanked everyone for the volunteer efforts that are put forth by the committees and commissions that are part of the city, he thanked the City Council for their hard work, and especially city staff for all they do. Mr. Michael Lindberg, Junior Vice Commander ofthe VFW Post 7662, and Post Quarter Master Kevin Gibbons presented the American flag and a State of Minnesota flag to the city for the new municipal buildings on Pilot Knob Road. a) Mr. Tim LaBeau Mr. Tim LaBeau, owner of Gossips Bar and Grill, asked the Council to allow him to stay open until 2 a.m. The surrounding areas of Rosemount and Lakeville have been open until 2 a.m. for the last month and he has noticed a drop in business as people are going there if they plan to stay out late. Interim City Administrator Siebenaler replied the code authorizes the city to follow whatev~r state law is. Current Minnesota statute is to allow for a 2 a.m. bar closing. City Attorney Council Minutes (Regular) September 2, 2003 Page 3 Jamnik stated Mr. LaBeau would have to apply to the state for the extended coverage and pay the state fee and get their approval. The city would then sign the application indicating the city's ordinance allows a 2 a.m. closure. There is no formal process for the city. If Council wants to go to 1 a.m., that can be done by ordinance. Currently, all the bars in town close at 1 a.m. or earlier. Mr. LaBeau will contact staff to obtain the number for the state. 7. CONSENT AGENDA MOTION by Soderberg, second by Fitch to approve Council Minutes (8/18/03 Regular). Voting for: Ristow, Fitch, Soderberg. Abstain: Fogarty. MOTION CARRIED. MOTION by Fitch, second by Soderberg to approve the Consent Agenda as follows: a) Approved Council Minutes (8/19/03 Special) b) Approved School and Conference - Fire Department c) Adopted RESOLUTION R59-03 Set Public Hearing - Ash Street Project- Engineering d) Approved Change Order Facilities Project - Engineering e) Adopted RESOLUTION R60-03 - Spruce Street AUAR - Community Development f) Approved Bills APIF, MOTION CARRIED. 8. PUBLIC HEARINGS a) Adopt Resolution - Vacate TH3 Right-of-Way Glenview Commercial Addition - Community Development A portion of the right-of-way along TH3 adjacent to the Glenview Commercial Addition needs to be vacated as part of the recording process. The easement was released by the State to the city in conjunction with the rerouting of 9th Street to the east. The easement vacation terminates at the northern border of the Glenview Commercial Addition. MOTION by Soderberg, second by Fogarty to close the Public Hearing. APIF, MOTION CARRIED. MOTION by Fitch, second by Soderberg adopting RESOLUTION R61-03 vacating the portion of the easement along TH3 in the Glenview Commercial Addition. APIF, MOTION CARRIED. b) Consider Proposed Acquisition/Redevelopment of Blaha Property - Community Development The HRA has discussed acquiring the Blaha property. There are two parcels, one at 2nd Street and Spruce Street. These two parcels are adjacent to four parcels already owned by the HRA. Council needed to consider if they are willing to purchase the two parcels. The HRA believes acquiring the property would be in the city's best interest both long and short-term. There was some discussion with a party a couple years ago that was interested in building a commercial building with senior housing above it. They determined there was not enough space in the four HRA parcels. It would be best for the city to acquire the Blaha property now and hold the property so the city can explore any options. Council Minutes (Regular) September 2, 2003 Page 4 Mayor Ristow stated a gentleman called him today saying he had made a standing offer for the property and staff referred to another party that was looking at the property at the time, so there were no offers being taken. He told Mayor Ristow he made the offer including the assessments and is still very interested in the Blaha property. Councilmember Fitch stated if we acquire this property there has been talk of some specific governmental use for this property. If this turns out not to be the case, he asked if the HRA is ready to actively market the property. Staff replied the HRA has been ready for some time. They have been waiting for a decision regarding a location for a new City Hall. The best development opportunity exists ifthe HRA also controls the two Blaha parcels. Councilmember Soderberg stated the HRA did agree unanimously it would be in the city's best interest to acquire the property. There was an item on an HRA agenda to consider taking requests for proposals for all of the HRA property. Councilmember Soderberg had suggested the HRA wait until the City Hall Task Force had completed their work. The HRA also owns another parcel they have been holding in case they need to relocate a business. Ms. Kris Akin, owner of Welcome Friends, stated she has had her business in downtown for 18 years, and she has watched the HRA do a lot of good for the downtown and the city. This property is one of the few remaining properties the city needs to fix and redevelop. She has seen the city work on the City Center project, the Exchange Bank Building, the streetscape project and it has been a blessing and a nice addition and positive atmosphere to the downtown. She encouraged the Council to endorse the HRA proposal to acquire the property so it can be redeveloped. She sees it has one of the few remaining properties in the area that needs help and feels the HRA and the city are in the best position to help someone do that. MOTION by Soderberg, second by Fitch to close the Public Hearing. APIF, MOTION CARRIED. Mayor Ristow asked Community Development Director Carroll ifhe was aware ofthe standing written proposal for the parcels already owned by the HRA. They have been marketed for some time. Community Development Director Carroll stated when he came to the city he was not aware of any outstanding offers for those lots. When Mr. Jason Stelter approached him about the HRA lots, at some point the HRA entered into an agreement to negotiate with him exclusively. He was concerned the city or HRA might sell the property out from under him while he worked on his financing. Eventually the agreement lapsed. If there were any inquiries during that time, they would have been told there was an agreement in existence, and the HRA is negotiating exclusively with one party. He would not have encouraged anyone to submit an offer, and did not recall receiving one. Council Minutes (Regular) September 2, 2003 Page 5 Mayor Ristow replied that is what this party has told him and wanted him to come to the meeting, but he could not come. Councilmember Soderberg stated the HRA is not in the business of selling land for people to speculate on. If someone did have a proposal to put a project there, it would have been forwarded to the HRA. To have a purchase agreement for the property without a project, he would not entertain it. Ifthere is a project, yes. But to sell property to someone to speculate on, no. The HRA would not do that in the industrial park, we are not going to do that in the downtown district. Mayor Ristow stated that is his question, why buy more when we do not have a proposal for what is going in there. Councilmember Soderberg stated the HRA believes if they acquire the entire parcel, they can get some substantial proposals and some good projects if City Hall does not go there. If it does, there are other properties the HRA would go out for request for proposals. This has been put on hold in case there are other businesses that need to be relocated. Mayor Ristow stated this property has been marketed for some time. A proposal came in from this person and they did not receive an answer back because of negotiations. When negotiations broke off, they expected to hear an answer back and they didn't. He is interested in sending in a proposal for the four HRA parcels, and possibly in the future the two Blaha parcels. Councilmember Soderberg stated at this point the HRA has told staff not to accept any proposals on property that the HRA owns until the City Hall Task Force is done. When Mr. Stelter came in, we were working exclusively with him, but he chose not to follow through. We do not know where City Hall will go. If it goes on the current site, we have a business to relocate. Ifit goes on 3rd and Spruce we have a property to acquire. If the business to be relocated chooses to go on the McVicker property or the industrial park, we do not know. We are keeping our options open. Councilmember Fitch stated the City Hall Task Force has completed their job. It is Council's job to make a decision. Councilmember Soderberg agreed, but the process is still under review by the Council. Ifthere were written proposals, they were probably not responded to, because the HRA told the Community Development Director not to entertain proposals. As soon as City Hall is decided the HRA is prepared to go out for requests for proposals and get this developed. Mayor Ristow stated if not, there is more property offthe tax roles. We did go out for proposals before and we had two people who were interested, one was the Eagle's and the other did not go through. Mr. Stelter and the person who called him today are the only parties he is aware of that are interested. Councilmember Soderberg stated the HRA has not gone out for proposals for quite some time and things have changed. Mayor Ristow stated if it was to be purchased, money was to be used from selling the three divided lots in the industrial park. He asked if that had taken place or does money have to be borrowed from the city. Staff replied there are contractual agreements with Vinge Tile and Stone and Just Kidding Around Daycare that include tentative closing dates. Both projects are moving forward. One is in the plan review stage and Mr. Vinge is completing his plans. There will be more than enough money generated from those two sales to cover the sale price of the Blaha property. Finance Director Roland stated the funds will be available from the Council Minutes (Regular) September 2,2003 Page 6 closings ofthese two properties and the funds would be available at the time the HRA wishes to purchase the Blaha property without any funds being borrowed from the city. It would be an independent HRA transaction. Mayor Ristow asked ifnot, would the funds be available from the city. Attorney Jamnik stated the resolution indicates the city will not be responsible for any loss. It is contemplated it would be financed exclusively by the HRA. Ifthat would change, it would have to come back to Council to modify the resolution. Councilmember Fogarty stated the HRA is giving Council good information and felt they are in the right direction. She understood the concern with financing in light ofthe budget, but this would be a good investment for the HRA. Mayor Ristow stated he would feel more comfortable ifthere were some plans available. We do have a person interested and he was sure his offer was still on file. It was a standing cash offer. He does understand it would have to go through the HRA and was never presented to them. He would like to see that followed through and ifhe does have a plan for him to purchase it through the HRA. Staff replied the next HRA meeting is September 8 and the packet would be completed on September 4 so there would be an opportunity to put it on the agenda. To some extent that would run contrary to the guidance staff has received from the HRA in the past. The general direction was not to encourage or entice people to submit offers on property when the city has not ruled out the property for a City Hall. Staff has been cautious to not have city bodies working at cross purposes. They have been careful not to mislead people or lead them to believe that ifthey make and offer that before a decision is made about City Hall, a decision could be made about the HRA lots. That decision should be made by the HRA. The goal is not to keep people from making offers on the property, it is to structure things so it is handled in the right way at the right time. Councilmember Fitch felt Council owed it to Mr. Blaha to make a final decision. Mr. Paul Hardt, member of the HRA, stated purchasing these two parcels helps put together a larger piece of property that could be integrated into a larger and better use for this area. The HRA was acting at the suggestion of the Council to recommend purchase of the property to keep the options open for possible development for the City Hall or other development. The HRA's stand was unanimous and they do favor acquisition of the property. In the long run it will be very much to the advantage of the city. MOTION by Fogarty, second by Fitch adopting RESOLUTION R62-03 authorizing the Farmington HRA and city staff to proceed with the proposed acquisition of the two Blaha-owned parcels. APIF, MOTION CARRIED. 9. AWARD OF CONTRACT Council Minutes (Regular) September 2, 2003 Page 7 10. PETITIONS, REQUESTS AND COMMUNICATIONS a) Adopt Resolution - Approving the Issuance and Sale of $6,200,000 Revenue Notes, Series 2003 (St. Francis Health Services of Morris, Inc. Project) and Authorizing the Execution of Documents Relating Thereto - Finance St. Francis Health Services of Morris, Inc. approached the city to act as issuer of revenue obligations. The obligations are conduit debt, which means the city acts as conduit and has no obligation for repayment of any kind. They have acquired the finance for the revenue notes and are asking the city to approve the issuance and sale of$6.2 million of revenue notes, series 2003, and authorize the execution of documents. The notes issued will pay offthe outstanding indebtedness of the Trinity site. St. Francis Health Services will then be the owner of the property and will proceed with whatever development will take place on those properties. Mr. Steve Fenlon, ofSt. Francis, stated this does not show up on the city's finances as any kind of debt. State law prevents the city from having any legal obligation to repay the debt. Mayor Ristow stated he received a comment from a life-long resident asking ifSt. Francis will be re-opening the hospital. Mr. FenIan stated the economics of hospitals are very difficult. St. Francis operates nursing homes, assisted living and independent living facilities. They do not own any hospitals. The likelihood of re-opening the hospital is very unlikely. Once a hospital closes, all the building regulations it was grandfathered under are gone. To re-open the hospital would be to demolish it and reconstruct it. Therefore, the hospital would not be re- opened. A time schedule has not been established for any renovations to the facilities. For any issues regarding operations staff should contact La Vern Hoffmann, Chief Executive Officer or Carol Raw, Chief Financial Officer. MOTION by Soderberg, second by Fogarty adopting RESOLUTION R63-03 approving the issuance and sale of $6,200,000 Revenue Notes, Series 2003 (St. Francis Health Services of Morris, Inc. Project) and authorizing the execution of documents relating thereto. APIF, MOTION CARRIED. b) Approve Spruce Street Master Plan - Community Development Mr. Loren Gordon, of Hoisington Koegler, stated they were the primary preparer for the Spruce Street Master Plan. The Spruce Street Task Force was comprised of business owners, residents, and Council. Throughout the process the Master Plan has been presented to the Planning Commission and Council. He then outlined how the Master Plan was developed. The Spruce Street Corridor contains 450 acres at the primary entrance to the city. Mr. Gorden presented the Land Use Plan to the Council which shows the areas where different types of uses will be located. The borders are County Road 50 on the north, Denmark Avenue to the east, 220th Street to the south, and an extended Pilot Knob Road to the west. Along the northwestern portion is a business and commercial flex area. This is a business park area for commercial type businesses. It is a location for Council Minutes (Regular) September 2, 2003 Page 8 employment with a retail opportunity. The frontage along Hwy 50 is the commercial area and adjacent to that is a mixed-use area. These last two areas are the commercial core and hub of activity for the Spruce Street area. The land uses in the southern portion are a mix of higher density and medium density residential such as townhomes and smaller lot single-family. The higher density would be condominiums and apartments. There is also park land, a town square, and natural areas which are undevelopable. Mr. Gordon then presented the Urban Design Concept Plan which gives an idea as to how the area could develop. It shows what the relationships are between the land use areas. The Spruce Street extension is key to the Urban Design Concept Plan as this is an extension of what has occurred in the development patterns in the city. This is a gateway to this area and a focal point for his area. There is an opportunity for mixed use shops, and retail services with housing above around the town square. Along Spruce Street could be a mix of retail, but more likely service oriented professional firms with some housing. On the edge ofthe downtown would be larger pad users. There are smaller pad users that front off the connecting streets to the town square off ofHwy 50. These are all connected to the business park area. There is an extension across South Creek to connect the residential area to the northern area. The trail systems and park features a bridge over the river to connect north-south areas. There are areas for active recreation along the gas line utility easements. The report identifies improvements that would need to be made, and funding mechanisms for the infrastructure. Councilmember Fitch asked about the mixed-use and living over retail space. Retail is not 8 a.m. - 8 p.m. He asked how that has worked in other areas, such as complaints regarding noise. Mr. Gordon replied at one time Farmington had this mixed use downtown. It has gone away somewhat and it has become a suburban community. More communities are wanting this mixed-use development where there are services on the ground floor and living above. That part ofthe community has not come here yet. There will be people who want things closer, don't need the yard space and would rather live above something close to where they work and to establishments that have things they need. Mr. Glen Nord, representing New Century and the Knutsen family, stated they are the owners and developer ofthe 60 acres on the northeast corner ofthe project. The development of the Knutsen property has been ongoing for a significant number of months. They are caught mid-stream. They have been operating under present platting ordinances, and now are about to shift gears to the new Spruce Street Master Plan form of development. The Knutsen's have already made concessions with staff members in meetings regarding wetland areas and green acres and have satisfactorily resolved those important issues. The Knutsen's have expended many thousands of dollars on partially completed project plans. There is a fear of the unknown, the little details, especially if they could lead to long delays. Both the developers and the owners have already entered into significant contractual obligations where they must report to the end-users. They are talking Council Minutes (Regular) September 2, 2003 Page 9 about bank end-users, hotel, fitness center, automotive, drug store, senior housing, restaurant, etc. The developer's and owner's goals are to work hand in hand with the city including the new project, to shift gears, and to be a good partner. They are not trying to escape responsibilities for having a nice project go. They do want it to be a major positive asset for the city. It is a big project and should be a model project. In the past, they have been told a preliminary plat could be submitted as early as late September, into October, no later than early November, depending on which meeting one attended in the past several months. This is one oftheir concerns. They are aware before this project can be implemented by the city or any property owners, the AUAR has to be prepared, submitted and approved. They joined with that and want that process to go smoothly. His clients are looking for a reassuring comment, a simple friendly word concerning the following topics: - It would be most reassuring to know that the leaders ofthe city either believe, hope or intend that the Knutsen property and it's submission of a preliminary plat can still be submitted in the next few weeks and dual tracked with the AUAR so that if things go the way staff, and his clients hope for, come January 2004 both the AUAR and preliminary plat will be accepted and approved. A friendly word would be very reassuring to his clients. - They think enough ofthis project, that they have asked the marketing director, the chief engineer, the owners and developer to be present so what Council has to say will be heard by the correct people and relayed to the end-users. They would like to know that the development of their parcel is not directly tied to the development of the remaining acreage. They are aware that it ties together and it is all one plan. They do need to hear that their plat will rise and fall on it's own merits and their plat will not rise or fall on what their neighbor is or is not doing. That is very important when dealing with sizeable individual parcels as these. - It would be most helpful, above all else to hear from Council, that the city does not object to the development of the Knutsen property at the earliest possible date. In other words, by switching to the Spruce Street plan, the time schedule that had originally been hoped for for the Knutsen property can still be fulfilled. Or if Council feels differently, it is important that Council speaks up and let his clients know this. They are asking for Council's comments, they are not asking for a resolution. A kind word would greatly be appreciated. Mr. Todd Larson, 819 ih Street, stated the park land is either wetland or pipeline easements. Is that going to be considered as part of their park dedication or is that considered land that cannot be developed, and they will have to come up with additional land or funding for park land. On the Knutsen property, it was his understanding that when they went along with the AUAR, they were also going along with the Master Plan itself. If they are excluded from the project, are we excluding them from the AUAR and do they need to come up with their own AUAR. They wanted to jump on board to stream line this, and once the AUAR is Council Minutes (Regular) September 2, 2003 Page 10 almost finished, they want to back off and be their own separate project. The Planning Commission had issues with this. Mr. Gordon replied they have identified park land dedication areas. Some of the property owners may not have their proportional share of park land on the property they own. The Knutsen's may have more park land proportionally than the Peterson property. That will have to be reviewed as to how the park land transfers to fit into the process. The park land is above what the typical park dedication would be. The city will be a purchaser of park land or negotiate that through the development process. Mayor Ristow stated the ball park and tennis courts were recommended, but does not mean that is what will happen. Mr. Gordon replied that is what the committee would like to see happen. Councilmember Soderberg stated some of the concern he has heard is that the land is either low ground or pipeline and becomes unusable as far as the parks being unable to build structures. Mr. Gordon stated the ball fields are not a complex-type design, but more of a practice field. Because of the pipeline easements, only minimal grading would be allowed. The townhome and high density residential areas would require park dedication fees. Mr. Larson asked if the pipeline easement and wetland areas are included as park land dedication. He felt they should not be included as park land dedication as you cannot do anything with it anyway. The city would be better off to let those areas grow naturally and take the park land dedication funds or land and do something constructive with it elsewhere other than put up a practice field where you cannot put up a backstop. Community Development Director Carroll replied staffhas heard from task force members and others that those areas on top of the pipeline may not be an ideal location for athletic fields. The reason the drawings show fields, is the task force was interested in doing something useful with the property. Staffhas not discussed with the pipeline company as to how they would feel about having athletic fields over the pipelines. As far as park land dedication, the drawings should not imply the designated areas are park land dedication. That issue has to be negotiated with each property owner. The Knutsen's have discussed routing their storm water to the east and having a large holding pond in the area designated as park land. The city would not want to give credit for a large holding pond as it cannot be used for recreational purposes. This topic will have to be discussed in greater detail. If the linear areas along the river could contain walking trails, the developer could argue they should get park land credit for that. Parks and Recreation Director Distad stated the park dedication ordinance does designate that flood plains, wetlands, and storm water ponds do not get credit for park dedication. When the preliminary plat comes in, that would have to be negotiated. As far as the park area identified, it is a linear park and more of a greenway. Some spaces could be utilized for practice fields, but because of the linear nature it does not lend itselfto a complex. The city would be better served to find land elsewhere for a complex where there would be 40-60 acres in a Council Minutes (Regular) September 2, 2003 Page 11 rectangular fashion for soccer and baseball fields. He sees this area as being more of a natural area because ofthe streams. Mayor Ristow asked if there would be any area available for permanent ball parks in the 400 acres. Staff replied potentially there could be. There is a need for more room to practice so there is less pressure on the game fields. Councilmember Soderberg asked if it would be correct to consider the Master Plan as a Comprehensive Plan. Community Development Director Carroll stated there are similarities. The Master Plan is viewed as a predecessor to Comprehensive Plan changes that will need to be made. They do not want to leave the impression the drawing will limit what the city has the right to do. If the Council decides they are in favor of changing the Comprehensive Plan and zoning to allow high density development, and as part of that if it is decided more parks or tot lots are needed, this document can be modified as Council sees fit. Mr. Mike Heinzerling, 4889 182nd Street, was part of the Task Force. They worked on this for 6-8 months and are very excited about this. Mr. Nord had mentioned the Knutsen's have spent some money, that is part of doing development. Mr. Heinzerling would like to see this done as soon as possible. The concern he has is if the Knutsen property is isolated out of the idea, can their preliminary plat have something completely different than what is planned? Does their preliminary plat still keep this concept in mind? He asked if it was possible to work with a preliminary plat along with the AUAR? Councilmember Fitch stated Council has to approve the Master Plan in order to go forward with the AUAR. Mr. Heinzerling encouraged Council to approve the Master Plan. Community Development Director Carroll stated there were comments whether or not the Knutsen property would be excluded from the Master Plan. Some of this comes from some discussion that occurred at the last Planning Commission meeting. Staffhas met with the Knutsen development team since then, and were able to clarify some issues for them. According to Mr. Nord's comments, staff believes they are no longer advocating that their property be excluded from the Master Plan. There has been some fear in the past that things may not work out as they had hoped. As far as dual tracking this staff is doing more than that. Most planners would prefer to do things in succession rather than concurrently. As the residents and Council have an interest in moving forward as quickly as possible, staffhas four separate things that are inter-related moving forward at the same time. They have the Master Planning process which might be completed at this meeting, the AUAR which is in progress based on working drafts of the Master Plan, things are in front ofthe Planning Commission regarding changes in the Comprehensive Plan and zoning and fine tuning of the uses permitted and conditional in the zoning district that exists on the Knutsen property now, and staff is about to embark into the preliminary plat review and approval process. So the process is being dual-tracked now and staffwill continue to do that. There are some risks involved that if one thing does not go as planned, it could impact the others, but that is a risk the developer and staff are prepared to take in the interest Council Minutes (Regular) September 2, 2003 Page 12 of completing this as quickly as possible. Staff is on track to get through the Master Planning process by early October 2003 and staff is on track to do that. The second question Mr. Nord raised was whether the development of the Knutsen property would be dependent upon the development of other properties. It is not. Their work has been judged on its own merits. They have come before the Planning Commission with a concept plan that has been reviewed. No one has suggested that when or how they proceeded would be affected by what others do. Staff has been in contact with other property owners and some may have interest in developing their properties, but are not as far along as the Knutsen's are. They are prepared to wait and see what will happen in the future. Staffhas always believed the Knutsen property should and would develop first, as it is the closest to the downtown area. Their proposals will be judged on their own merits, and staffwill not sit on them for 5 or 6 months until they find out what others will do. The third point about whether the city is in favor of expeditiously developing this property, staff, Council, the Planning Commission, and the Task Force have told them they are. Staff is doing their best to expedite this as quickly as possible. People at Bonestroo are dropping other projects to move the AUAR forward as quickly as possible. Staff has told the developer they will not wait for the AUAR to be completed. They will take the initial studies before they are incorporated into the report and get them to the developer so they can review them so the AUAR is a work in process they are participants in rather than recipients of at the end of the process. Mayor Ristow stated that is what was said at the development meeting and Council is supportive of staff and how it will progress. Nothing has changed and Council wants the project to move forward. Councilmember Fogarty agreed she wants to see the project move forward. Councilmember Soderberg stated the city needs to expand its commercial and business base so they would like to see it develop. No property owner has been tied to another property owner. The Knutsen property is the next logical development spot. It appears the dual-track system is underway. Things are happening very favorably for the Knutsen's. Mr. Nord stated they are very happy with Council's comments and they will relay the comments to numerous end-users. They will keep the project moving forward. Councilmember Fitch stated on the developer's behalf he understands they have had different situations in other cities with this same type of proposal which has created some concern. Instead of being a guide line it was written in stone. This plan has more flexibility. Mr. Don Peterson stated the process has gone real well and he is pleased with it. He is satisfied with the Master Plan concept. Council Minutes (Regular) September 2, 2003 Page 13 Councilmember Fogarty thanked the Task Force and staff and the consultant. They did a great job of melding a lot of ideas and concepts together. MOTION by Soderberg, second by Fogarty to approve and adopt the Spruce Street Corridor Area Master Plan. APIF, MOTION CARRIED. c) Approve Proposed MUSA Committee Structure - Community Development The Planning Commission and staffhave been discussing reactivating the MUSA process. The city went through the process a couple years ago and Council has indicated an interest in starting the process again. Last time there were five people on the committee. The Planning Commission recommended the following: Councilmembers - 2 City staff members - 2 or 1 City staff member and 1 City consultant ISD 192 Board Member - 1 ISD 192 Staff member - 1 Planning Commission members - 2 Parks and Recreation Commission member - 1 City Parks and Recreation staff member - 1 MOTION by Fitch, second by Soderberg to approve the MUSA Review Committee structure that was recommended by the Planning Commission at its meeting on August 12,2003. APIF, MOTION CARRIED. d) Appoint Council Liaison - Water System Vulnerability Assessment- Engineering MOTION by Soderberg, second by Fogarty to table this item to the September 15,2003 meeting. APIF, MOTION CARRIED. e) Discuss Pre-Council Meeting Work Sessions -Administration MOTION by Soderberg, second by Fogarty to table this item to the September 15,2003 meeting. APIF, MOTION CARRIED. 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) Adopt Resolution - 2004 Preliminary Tax Levy and Budget - Finance Council has received the 2004 Budget which includes the 2004 tax levy. The state requires the city to pass a preliminary levy for the following year's taxes by September 15, 2003. Once the levy is adopted, the city may lower it, but not raise it. The tax levy is $4.651 million which includes $1.106 million for debt service, and a $55,000 fire levy. The levy limit for 2004 is $4,651,306. For the 2002 budget year the state removed HACA. In 2001 the city received between HACA and LGA over $800,000 or 17% ofthe total city budget as aid from the state. In Council Minutes (Regular) September 2, 2003 Page 14 2002 the tax levy took a $900,000 jump, part for operations and part to recover the lost HACA aid. Last year the city raised the tax levy by half the amount of lost HACA and absorbed the other half. As the state took away the excess levy the city has to levy to the limit for 2004. When the budget process for 2004 began, it started out at -$256,000. The city will be run in 2004 on the same amount of revenue collected in 2002. In between, the city has grown 23% in market value each succeeding year. The city is 46% larger than 2002. In the 2004 budget, one position will be added, a police officer. Planning and building interns will be used to assist with the work. Capital Outlay items are outside of levy limits as they will be purchased with certificates of indebtedness. That amount is $750,000 for equipment needed to run the city. Some priorities will have to be set, and some services may not be performed as quickly as in the past. MOTION by Soderberg, second by Fitch adopting RESOLUTION R64-03 certifying the 2004 Preliminary Tax Levy to Dakota County and establishing December 1,2003 at 7:00 p.m. as the City of Farmington's Truth in Taxation hearing for Tax Levy collectible in 2004. APIF, MOTION CARRIED. 13. COUNCIL ROUNDTABLE Councilmember Soderberg: The quarterly ALF Ambulance meeting was held last week. Former City Administrator Shukle was the Chair for the Executive Management Committee. The Joint Powers Agreement specifies Farmington to have the position of chair. The board has changed the agreement to have Mr. Bob Erickson, Lakeville City Administrator be Interim Chair until the changes are made in the Joint Powers Agreement, and then Apple Valley City Administrator Tom Lawell will hold the position of Chair. This was decided as this position needs long-term management and is in the best interest of ALF Ambulance and the cities involved. Parks and Recreation Director Distad: The 21 st Anniversary of the Rambling River Center will be held September 9,2003, from 5 p.m. - 8 p.m. 14. EXECUTIVE SEARCH FIRM INTERVIEW Personnel Decisions International, Mr. Harry Brull Mr. Brull is the Senior Vice President of Public Sector Services for PDI and has been with PDI since 1978. PDI is based in the Twin Cities and has been in business for 37 years. There are 1,000 employees, 18 U.S. offices, and they are located in 17 countries. PDI's expertise is in understanding what it takes to run an organization, what it takes to be successful in a given job, and the ability to measure people and organizations against that standard and to close that gap. They have placed 1.4 million people in leadership roles around the world. In the public sector, search is not the operative word, you do not need to search for a City Administrator. He has in his office the name of every City Administrator in the U.S. on a data base. The key is to figure out where you are as a city, where you want to go as a city, what it will take and who it will take to get you where you want to go, and look at candidates and say how close to the template does this person Council Minutes (Regular) September 2, 2003 Page 15 fit. The key is the person you put in this role is the person you expect them to be. They have the skills and strengths you expect. If they have deficiencies you know what they are and ifthey are ones you can live with. The process has two roots. One is what are you looking for. He will interview Council, staff, businesses, and the religious and education community. From that he builds a template. The other side begins with people. Talking to people who recommend other people, getting solicitations out. He strongly recommended to not waste money in the local newspaper. He will use the MN League of Cities, and ICMA. He would go regionally and identify cities in an x-state region of certain size and get every City Administrator a letter. From that process it is not selection, it is de-selection. You take the candidate pool and get rid of everything but one. As an industrial organizational psychologist his expertise is in designing the process, and helping Council do the interview. He would like to involve the staff, including department heads and representatives of line staff. He would highly recommend this. Councilmember Fitch asked ifhis profile was different than other firms. Mr. Brull felt their questions are different. Questions are "What are the priorities for the city in the upcoming year?" "What are the challenges both for the city and this person?" "What is the tough stuff?" The profile should reflect not only a template for hiring, but a step back for where are we and where are we going. Councilmember Fogarty asked ifhe worked through the entire process with Plymouth. Mr. Brull replied he has worked with Eden Prairie, Golden Valley, etc. Councilmember Fogarty asked what he is doing different in his final assessment that is so different? Mr. Brull stated his professional expertise is in the measurement of competence of human beings. He is President of the International Personnel Management Association Assessment Council. His skill is in testing, simulations, knowing how to interview in- depth and teaching others how to do it. One thing he has built for City Administrator selection is a press conference. They take a candidate and give them a newspaper containing an article on a scandal. They are told in 5 minutes the TV press will be here wanting a statement from him. In 5 minutes they walk into a room with bright lights and cameras and two reporters who start firing questions at them. This is video taped and Council gets to see it. They also give the person a stack of paper and say this is from the in-basket, deal with it. They also use tools of testing for leadership style and personal style. Councilmember Soderberg asked ifhe interviews Councilmembers independently or as a body? Mr. Brull replied generally independently. It gives more air time and more freedom of expression. They can be in person or over the phone. They then meet as a group and discuss what he was told. He does like to meet with staffupfront in focus groups at a department head level. Councilmember Soderberg stated one thing he has heard was a concern that he is a salesman to sell us a product and you have this pool that through your process you have created and that you will somehow try to sell us a candidate that mayor may not be what we are looking for. Mr. Brull replied he does not have a pool. He is not trying to sell anything. When organizations hire him for Council Minutes (Regular) September 2, 2003 Page 16 assessments for one-three people he tells them you do not have any good candidates or have one or two that look strong. This does not mean he does not see perennial candidates. Mayor Ristow stated ifPDI is selected and there are five candidates, you are not going to politic for anyone individual. You are not going to bring anyone with baggage from other cities. Mr. Brull replied some people have had problems with other cities that they do not bring with them. One thing he does is press searches. It is hard to be a City Administrator and not hit the press. The people who come here are applying for a new job for a reason. Mayor Ristow stated this is his third City Administrator and second Superintendent. Most have all been satisfactory and the consultants for the school have presented the information very well and left it up to the committee to decide. He is asking Mr. Brull to be open and fair. Mr. Brull stated Council will get everything he can find out about the person within the constraints of law, ethics and decency. His job is no surprises. Mayor Ristow stated the Council had agreed on a 5-state area. Mr. Brull stated he has the cities sorted by size, so they can send a letter to cities of 5,000 or more. This is cheaper than an ad. This is something personalized in the City Administrator's hands in 5 states. At 6 months post-hire he comes back to look at how the person is doing both from Council's point and below. They sit down with the individual and Council and share that information. Mayor Ristow stated if in 6 months, Council is disappointed, what is the process. Mr. Brull stated if it is fixable, that is one thing. Ifthey want to pull the plug, he has a guarantee. In 25 years that has not happened. He has had to redo a search with a different process. Councilmember Fitch stated there has been some political tension. How does he work with the Council to bring them together enough to make a decision? Mr. Brull stated he has worked with Council's who worked together a lot less well. Good healthy disagreement is critical. The key is to be able to effectively work through differences and come to a resolution. This process gives the opportunity to do that. He likes to discuss problems in private. If Council does not work well together, the City Administrator cannot succeed. Mayor Ristow asked what his expectancy is ofthe longevity of a City Administrator. Mr. Brull stated Council needs to define minimally how long a person needs to stay to bring some stability and consistency to the process. Mr. Brull suggested 3 years minimum. By professional standards City Administrators cannot voluntarily leave a position in less than 2 years without risking professional censure by their professional organization, which is a black mark they carry with them. Whatever minimum the Council decides on, Mr. Brull will tell the candidate if you do not plan to stay for that length of time, do not bother. Mr. Brull asked how long the last City Administrator was here. Mayor Ristow replied 1 Y2 years. Mr. Brull then asked if Council gave a severance package. Council replied yes. Mr. Brull replied that is becoming the norm. You will have a hard time attracting candidates if you are not willing to pay a severance. Council Minutes (Regular) September 2, 2003 Page 17 Mayor Ristow stated with the Superintendent search one concern was with longevity and being actively involved in the community. Mr. Brull replied by law you cannot force where they live, but you can say I need someone who will be out there active and visible in the community. The best predictor of that is how have they played the game where they have been. Mayor Ristow stated if there are functions on the weekends or at night, that does have an impact. Mr. Brull stated if you hire someone from out oftown you can give them an incentive to live here. You can help defray moving expenses if they move to town, but not if they won't. It will get tough with someone from the metro area who has kids and a home and will drive across town. The expectation of being involved in the community should be out there upfront. Mayor Ristow stated from the School Board you get more activity out of the person if they are readily available. Mr. Brull replied you get some people who live further away that will be more involved in the community because that is who they are. Others who live in the community go home at night and lock their door. Councilmember Soderberg asked if the cities where there was more conflict, were the placements successful. Mr. Brull stated the person was appoint on a 5-0 vote, and those people either are still successfully employed or left after 5 or more years of their own accord in good standing. Councilmember Soderberg stated he hoped the Council could come to a 5-0 vote on a candidate. His interest is that whoever the candidate is, is successful here and stays 5-7 years. Mr. Brull stated the higher quality of data about who you are getting, the more successful you will be in your selection. Mayor Ristow asked what his time length is. Mr. Brull stated 10-12 weeks from the ad to an appointment. Mayor Ristow stated once it is started, there are no delays. Mr. Brull stated it is more than no delays. When we start we put a schedule together that says this is the date Council will interview candidates so you know it and you can schedule it. They tell the candidates when they apply, do not take a vacation this week. A City Administrator should be selected before Thanksgiving. Mr. Brull himself will be doing the process. Council will advise all the search firms as to which one is selected. IS. ADJOURN MOTION by Soderberg, second by Fogarty to adjourn at 10:24 p.m. APIF, MOTION CARRIED. Respectfully submitted, /i .L~' /7// Tz7C:~ .h-7 ~ Cynthia Muller Executive Assistant