HomeMy WebLinkAbout10.01.18 Council Minutes CITY OF FARMINGTON
CITY COUNCIL MINUTES
REGULAR MEETING
OCTOBER 1, 2018
1. Call to Order
Mayor Larson called the meeting to order at 7:00 p.m.
2. Pledge of Allegiance
Mayor Larson led those in attendance in the Pledge of Allegiance.
3. Roll Call
Present-Larson, Bernhjelm and Craig
Absent-Bartholomay, Donnelly
Staff Present-Administrator McKnight, Finance Director Malecha, Community Development
Director Kienberger, Public Works Director Gehler, Human Resources Director Wendlandt,
Parks and Recreation Director Distad, Fire Chief Elvestad, Acting Police Chief Rutherford and
Attorney Jamnik.
4. Agenda
Motion by Bernhjelm, second by Craig,to approve the agenda as presented. APIF, motion
carried.
5. Announcements/Commendations
None
6. Citizen Comments
None
7. Consent Agenda
Motion by Bernhjelm, second by Craig, to approve the consent agenda:
a) Approve Minutes of the September 17, 2018 City Council Meeting-Administration
b) Authorize the Purchase of an Asphalt Hot Box/Emulsion Tank Trailer-Public Works
c) Adopt Resolution R39-2018 Appointing 2018 General Election Judges-Community
Development
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d) Approve City Administrative Policies and Procedures: Tuition Reimbursement-Review,
Changes and/or Additions-Human Resources
e) Approve Bills-Finance
APIF, motion carried.
8. Public Hearings
None
9. Award of Contract
None
10. Petitions, Requests and Communications
None
11. Unfinished Business
None
12. New Business
a) Franchise Agreement with Minnesota Energy Resources
Administrator McKnight presented a draft franchise agreement with Minnesota Energy
Resources for consideration. The current agreement will expire on November 3, 2018. This
agreement was approved by the city council on November 3, 2003.
The current agreement allowed Minnesota Energy Resources to construct and maintain a
natural gas distribution plant and system and granting the right to use the streets, alleys and
other public places with the present and future corporate limits of the city.
The proposed ordinance allows the same activities to take place for the next ten years. The
length of the contract, going from a 15-year agreement to a rolling ten-year agreement, is the
only change from the current to the proposed agreement outside of the name change of the
gas company.
Both the current and proposed agreement include language allowing the city to implement a
franchise fee at any time during the duration of the agreement with certain requirements.
There has been no discussion of a franchise fee in the past seven years.
The city attorney has reviewed the draft franchise agreement and has no concerns. Minnesota
Energy Resources has been a good organization to work with over the years.
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Kyle Chester and Al Keuten from Minnesota Energy are in attendance at the meeting to answer
any questions the city council may have on the proposed agreement.
This draft agreement is for information only tonight. If there are no concerns, the agreement
will be brought back at the October 15, 2018 city council meeting for consideration.
Councilmembers had no concerns on the proposed franchise agreement.
b) Amendment to the Settlement Agreement Between the City of Farmington and
Independent School District 192
Administrator McKnight presented a draft amendment to the settlement agreement between
the City of Farmington and Independent School District 192 in regards to the construction of a
high school in 2006.
In May 2006 the city and the school district entered into a settlement agreement regarding the
construction of a new high school located along Flagstaff Avenue and related public
infrastructure improvements to serve the new school and other properties in the area,
including the eventual east/west extension of 208th Street between Flagstaff Avenue and the
Lakeville border.
The settlement agreement includes a number of still relevant points including the construction
of 208th Street at school district expense, collection of assessment by the city in a specified
benefit area,the city passing those collected assessments on to the school district and more.
The school district paid $11,673,549.51 of the costs of Flagstaff Avenue, sewer improvements
and sanitary sewer in 2006. Minus the school district apportioned benefit of these costs,the
outstanding costs subject to potential reimbursement to the district are $10,789,940,.06.
The city has two mechanisms to utilize to collect these dollars; availability charges or special
assessments.
State statute clearly grants cities the authority to collect availability charges for water and
sewer utilities to recover the cost of the construction of trunk and other capital improvements.
This authority is not granted for road construction. Recent court rulings have set precedence
reinforcing the lack of specific authority cities have to collect fees for streets.
The city does have the authority to use special assessments. The use of assessments requires
the city to prove the benefit of the improvement to the property being assessed. It is highly
unlikely the city will be able to pass the special benefit test for the improvement in question.
This could result in appeals of the assessments and legal costs to defend those appeals.
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As an aside, the city changed its assessment policy in May 2014. This change removed special
assessments for projects in our capital improvement plan. While the option to assess projects
is still available, our practice of paying for projects through the property tax levy has worked
well and is still recommended by staff.
Given the mechanisms the city can legally use, the adjusted potential reimbursement to ISD 192
is $3,416,650.45
The current agreement specifies 208th Street to be a rural cross section street. Since the time
of the agreement, regional transportation studies have been completed with Dakota County
and other local jurisdictions which identify this future street as part of an east/west corridor
route from Interstate 35 through Lakeville and Farmington continuing to Highway 52 in
Hampton. Given the designation, the cross section defined in the settlement agreement would
not be adequate to handle the expected traffic volumes. In addition,turn lanes, medians, etc.
should be considered to safely manage traffic.
The proposed amendment to the settlement agreement is simple in nature and proposes the
following:
✓ The school district work related to the settlement agreement is complete.
✓ The city will take on the responsibility for building and funding the 208th Street
extension when it is prompted by development along 208th Street.
✓ The city will collect SAC and WAC fees over time from properties in the benefit area.
These dollars will be invested in our current and future utility infrastructure system. It
should be noted that these trunk fees not only pay for the utility lines themselves, but
also other capital projects to support development including new wells, a water tower
and more.
The reason the city would consider agreement to this amendment include:
✓ The city has the ability to pass on portions of the future street construction costs to the
landowner/developer that the school district does not. If you look at the map of the
future 208th Street, three quarters is on privately owned land. That means these costs
can be passed onto a future development and responsibility taken off of taxpayers.
✓ The remaining one quarter of the costs will need to be paid for by someone. The city
has discussed with the City of Lakeville the possibility of making the future 208th Street
an MSA designated street. This means we would be able to use future MSA funding to
pay for the final portion of the future street if this designation occurs.
✓ The city alleviates a difficult development caused reimbursement calculation and
process in the future in the benefit area.
If this amendment to the settlement agreement succeeds, the community can put this issue to
rest,the school district financial obligation to the construction of 208th Street is complete and
the city can plan for future construction and funding of the street.
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This issue was discussed at the school board meeting last week and the city council meeting
tonight. City staff will attend the school board work session next week to discuss the issue as
well. If both parties are in agreement, the city council would consider this issue again on
October 15, 2018 and the school board on October 22, 2018.
Councilmember Bernhjelm stated it shows the partnership we have with the school district and
this is in the best interest of the community.
Councilmember Craig agreed with Councilmember Bernhjelm and thinks this is the best
solution for this issue.
c) Dakota County Principle Arterial Study
Public Works Director Gehler shared that over the last year Dakota County has been analyzing
its transportation principle arterial needs. Principal arterials are the main travel routs that carry
the most traffic in an area, often at high speeds and over long distances. These roads include
interstate or major highways but they can also be two-lane highways, especially in rural and
developing areas. The principle arterial network in Dakota County is well established in the
north part of the county. The south part of the county, south of County Road 42 and east of
Interstate 35, is incomplete.
Dakota County invited participation from a full range of relevant partners in the study. The
study is now complete and the county intends to consider adoption of the study at the October
6, 2018 Physical Development Committee meeting.
The primary objectives of the study were to evaluate how the included highway segments are
used and the features they exhibited compared with principle arterial highway characteristics.
Other objectives included documenting contact for highways and providing guidance to help
Dakota County and its partners plan for both regional and local highway system priorities. In
Farmington the segments included existing and future segments of County Road 70 and State
Highway 50 along with Trunk Highway 3.
The study was shared with the city council for their review. The study identifies additional
planning needs along future connection corridors in Farmington (County Road 70 extension)
and existing corridors with constrained right of ways (County Road 74). The county seeks
partnership in reflecting the results of this study in our local plans and supporting access
management and right of way goals along the future principle arterial routes.
Councilmember Craig stated it was good to see eventual improvement being planned.
Councilmember Bernhjelm asked when was the earliest these streets would be designated.
Gehler stated that this work lays the groundwork as development occurs.
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Motion by Craig, second by Bernhjelm,to adopt Resolution 40-2018 supporting the
recommendations of the principle arterial study and adoption by Dakota County. APIF, motion
carried.
d) Agreement with HKGI and Committee Structure to Create a Bike Pedestrian Plan
Parks and Recreation Director Distad reminded the city council that the city has been awarded
a $32,000 Statewide Health Improvement Partnership grant through Dakota County to help
create a bike pedestrian plan in the community.
Staff recently completed a request for proposal process for the plan. Information was mailed to
seven planning consultants and posted on the city website. Three proposals were submitted
for review. At the September 2018 Parks and Recreation Advisory Commission meeting a
unanimous recommendation was made to hire Housington Koegler Group, Inc. for this project.
The commission's recommendation is based on:
✓ Received the highest average score of the three proposals submitted
✓ Amount of previous work experience with bike and pedestrian planning projects
✓ Past experience working with the city on developing the 2040 Comprehensive Plan and
for the work it has done on creating approved individual park master plans, both of
which involved a community engagement process
Additionally, because the plan requires a public engagement process,the commission discussed
and recommended that the city council approve the following organizations be represented on
a Bike Pedestrian Plan Committee:
✓ Park and Recreation Commission
✓ Planning Commission
✓ ISD 192
✓ Farmington Police or Fire Department
✓ Rambling River Center Advisory Board
✓ Two residents not affiliated with a community organization
✓ Biking advocacy organization
✓ Farmington Business Association
✓ Farmington Youth Sports
HKGI has proposed that it will cost $32,000 to develop the plan. The city has received $32,000
from Dakota County to develop the plan.
Councilmember Craig likes that it is budget neutral and asked how many times the committee
would meet. Distad shared that three committee meetings are planned along with two public
open houses.
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Councilmember Bernhjelm stated she likes the structure and reminded everyone that a plan
requires eventual funding and that is to be determined. Distad stated we will use the plan as a
guide for the future.
Mayor Larson asked if this was a part of the larger greenway plans that have been discussed the
past decade. Distad stated the greenway plans are a county project but would connect to city
trails.
Motion by Bernhjelm, second by Craig,to approve the agreement with HKGI to develop a city
bike pedestrian plan and approve the Bike Pedestrian Plan Committee structure. APIF, motion
carried.
e) Highway 3 Corridor Plan Professional Services Agreement
Community Development Director Kienberger shared that as an offset to the 2040
Comprehensive Plan development, staff recommended development of a plan for one of
Farmington's oldest commercial corridors along Highway 3. This is also an offset of the
Downtown Redevelopment Plan which calls for strengthening the connections to downtown at
key gateway areas.
A review committee consisting of two EDA members, one planning commission member and
staff from planning and community development reviewed the five submitted proposals from
qualified firms and recommended the proposal from WSB and Associates at a fixed fee of
$39,995 for this work.
The WSB proposal ranked the highest within the committee with a combined score of 89 out of
100 possible points.
The Dakota County CDA approved Farmington's redevelopment incentive grant application for
$15,000 which will be matched by Farmington's 2018 Community Development Block Grant
funds of$15,000. The additional dollars needed for the plan will come from the EDA budget.
The EDA reviewed the recommendation at their meeting on September 27, 2018 and voted to
approve forwarding the recommendation to the city council for contract authorization.
Councilmember Bernhjelm asked how long this plan will take to complete. Kienberger stated it
would take about six months.
Motion by Craig, second by Bernhjelm, to approve the professional services agreement with
WSB & Associations in the amount of$39,995 for development of a Highway 3 Corridor Plan.
APIF, motion carried.
October 1, 2018 Minutes -7-
13. City Council Roundtable
Bernhjelm-Congratulated Kindred Chiropractic on their recent opening in Farmington and
reminded residents of the upcoming Fire Department blood drive and open house.
Craig-Noted the theme of the meeting tonight focused on the city preparing for growth and the
future.
Kienberger-Shared that it is Minnesota Manufacturers Week and shared information on
manufacturing jobs in Minnesota.
Distad-Reminded residents that the annual Rambling River Center waffle breakfast is scheduled
for Saturday, October 27, 2018.
Larson-Reminded residents that hydrant flushing is occurring for the next two weeks, asked
residents to adopt a storm drain, shared that longtime resident Dick Graylish recently passed
away and encouraged residents to shop local.
Adjourn
Motion by Craig, second by Bernhjelm, to adjourn the meeting at 7:34 p.m. APIF, motion
carried.
Respectfully Submitted
1) P. WI*Ks1.ifl
David McKnight, City Administrator
October 1, 2018 Minutes -8-