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HomeMy WebLinkAbout11.03.03 Council Packet City of Farmington 325 Oak Street Farmington, MN 55024 Mission Statement Through teamwork and cooperation, the City of Farmington provides quality services that preserve our proud past and foster a promising future. AGENDA REGULAR CITY COUNCIL MEETING November 3,2003 7:00 P.M. CITY COUNCIL CHAMBERS Action Taken 1. CALL TO ORDER 7:00 P.M. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA 5. ANNOUNCEMENTS/COMMENDATIONS 6. CITIZEN COMMENTS / RESPONSES TO COMMENTS (Open for Audience Comments) 7. CONSENT AGENDA a) Approve Council Minutes (10/20/03 Regular) b) Capital Outlay - Finance c) Adopt Resolution - Gambling Event Permit - Administration d) Approve Submittal of Application for Landfill Abatement Funds from Dakota County - Parks and Recreation e) Approve Bills Approved Approved R80-03 R8i-03 Approved 8. PUBLIC HEARINGS a) Approve 2004 License Renewals - Administration Approved 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS a) Set Council Workshop - Administration b) Administrative Policy for Minor MUSA Extensions - Community Development c) Appoint City Council Representatives to MUSA Review Committee - Community Development d) Gas Franchise Agreement - City Attorney December 3, 2003 Approved Appointed Ord 003-501 11. UNFINISHED BUSINESS a) City Administrator Search - PDI Consultant Injormation.Received ,. 12. NEW BUSINESS 13. COUNCIL ROUNDTABLE 14. ADJOURN City of Farmington 325 Oak Street Farmington, MN 55024 Mission Statement Through teamwork and cooperation, the City of Farmington provides quality services that preserve our proud past and foster a promising future. AGENDA REGULAR CITY COUNCIL MEETING November 3, 2003 7:00 P.M. CITY COUNCIL CHAMBERS Action Taken 1. CALL TO ORDER 7:00 P.M. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA 5. ANNOUNCEMENTS/COMMENDATIONS I. CITIZEN COMMENTS / RESPONSES TO COMMENTS (Open for Audience Comments) 7. CONSENT AGENDA a) Approve Council Minutes (10/20/03 Regular) b) Capital Outlay ~ Finance c) Adopt Resolution - Gambling Event Permit - Administration d) Approve Submittal of Application for Landfill Abatement Funds from Dakota County - Parks and Recreation e) Approve Bills Pages 1-6 Pages 7-8 Pages 9-10 Pages 11-12 Page 13 8. PUBLIC HEARINGS a) Approve 2004 License Renewals - Administration Pages 14-15 9. AWARDOFCONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS a) Set Council Workshop - Administration b) Administrative Policy for Minor MUSA Extensions - Community Development c) Appoint City Council Representatives to MUSA Review Committee - Community Development d) Gas Franchise Agreement - City Attorney Page 16 Pages 17-18 Pages 19-20 Pages 21-26 11. UNFINISHED BUSINESS a) City Administrator Search - PDI Consultant 12. NEW BUSINESS 13. COUNCIL ROUNDTABLE 14. ADJOURN '7a.. COUNCIL MINUTES REGULAR October 20, 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: Ristow, Cordes, Fitch, Fogarty, Soderberg None Joel Jamnik, City Attorney; Dan Siebenaler, Interim City Administrator; Robin Roland, Finance Director; Kevin Carroll, Community Development 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 Audience: 4. APPROVE AGENDA Councilmember Soderberg added item 5a) Letter of Commendation to Community Development Director Carroll. Councilmember Cordes pulled item 7a) Council Minutes (1011/03 Special) to abstain. MOTION by Fitch, second by Cordes to approve the Agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS a) Letter of Commendation On October 17, 2003 Councilmembers Soderberg and Fitch, Interim City Administrator Siebenaler, Community Development Director Carroll, Finance Director Roland, Parks and Recreation Director Distad, and Glen Anderson, Chamber of Commerce went to hear a presentation given by Community Development Director Carroll to the Met Council for a Demonstration Grant for the Spruce Street Corridor. Councilmember Soderberg stated Mr. Carroll used some creativity in his presentation which was absolutely clever. After looking at several presentations with charts and concept plans, they all ran together. Mr. Carroll decided Farmington needed to stand out from the pack. He started out with a large picture of a beagle puppy and used that as an analogy to demonstrate that while Farmington is not necessarily a big dog, we are a good dog. He used some points to get the Met Council's attention to help Farmington stand out from the pack. Even afterwards, the Met Council was using the metaphor in their discussions. Councilmember Soderberg was very impressed with the presentation and wrote a letter of commendation. The letter stated he was very impressed with Council Minutes (Regular) October 20, 2003 Page 2 this presentation to the Met Council. If nothing else, Mr. Carroll gave them a presentation they will remember and certainly one that will stand out above the rest. In setting Farmington apart from the pack, perhaps the merits of our request will get a second look and give us that competitive edge necessary to rise above political sway. It is not necessary for us to be a big dog. But if we continue to allow creativity such as you demonstrated I have no doubt that we will be a very good dog. Councilmember Soderberg stated it is the creativity he commends and this carries over to the Interim City Administrator as well to allow Mr. Carroll to be that creative. Community Development Director Carroll thanked Councilmember Soderberg for his comments. He stated if we get any grant money from the Met Council, it will not be because of what happened at the presentation, it will be because we have a good Master Plan. The Master Plan is the result of hard work on behalf of a lot of people. Councilmember Fitch stated he also felt it was a very impressive presentation and one he remembers much more than the others. Mayor Ristow also thanked everyone for attending and for bringing this commendation forward. 6. CITIZEN COMMENTS 7. CONSENT AGENDA Councilmember Soderberg noted a couple typos in the Minutes and they will be corrected. MOTION by Fitch, second by Fogarty to approve Council Minutes (l0/1/03 Special) Voting for: Ristow, Fitch, Fogarty, Soderberg. Abstain: Cordes. MOTION CARRIED. MOTION by Fogarty, second by Soderberg to approve the Consent Agenda as follows: a) Approved Council Minutes (10/6/03 Regular) b) Set November 3, 2003 Public Hearing Various Licenses and Permits - Administration c) Received Information School and Conference - Fire Department d) Approved Professional Services Contract - MIS e) Received Information Park and Recreation Commission Minutes - Parks and Recreation f) Approved Cooperation Agreement Community Development Block Grant Program - Community Development g) Approved Bills APIF, MOTION CARRIED. 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT Council Minutes (Regular) October 20, 2003 Page 3 10. PETITIONS, REQUESTS AND COMMUNICATIONS a) Customer Service Response Report - Administration The Customer Service Response Report was presented for April- June 2003. On average 98% of requests are handled within 1-3 days. Staffhas received a 96% rating for being courteous and helpful and residents gave an 88% rating for being personally satisfied with the response. b) Schedule Board and Commission Interviews - Administration Each year board and commission seats expire on January 31. For 2004, 13 seats will be expiring. MOTION by Fogarty, second by Cordes to interview applicants on January 3,2004 at 8:15 a.m. APIF, MOTION CARRIED. c) Dakota County Draft 2004-2008 CIP - Engineering Two ofthe requested projects are included in the 2004-2008 CIF which include the Ash Street project and the preliminary engineering for the reconstruction of Main Street. Both projects are programmed for 2005. Regarding the trail along 195th Street between Akin Road and Pilot Knob Road, the county will be able to set aside some dollars from this year and do the project next year. d) September 2003 Financial Report - Finance A summary of revenues and expenditures was presented as of September 30, 2003. The general fund revenues are at 65.8% of budget. Licenses and permits are at 106% of annual actual adopted budget for 2003. Expenditures are at 77% of budget. This is due to capital outlay items and personnel related items. e) Discussion of MUSA Review Committee Process - Community Development Staff discussed three aspects of the MUSA review process including the criteria, the timetable, and the application form. Regarding the criteria, staff presented a comparison of what was used during the 2000 MUSA Review and the proposed criteria. A few changes were made including adding number 7 stating a preference will be given to MUSA applications that could reasonably be expected to expedite or facilitate retail and commercial growth. The timeline is to be used as a guide. A final decision should be made in April 2004. As far as the application, the general questions were removed and staff inserted the specific criteria, as the committee will be asking applicants to address each criteria. MOTION by Fogarty, second by Soderberg to approve the MUSA review criteria, timeline, and application form. APIF, MOTION CARRIED. 11. UNFINISHED BUSINESS 12. NEW BUSINESS Council Minutes (Regular) October 20, 2003 Page 4 13. COUNCIL ROUNDTABLE Councilmember Fogarty: Urged everyone to have a safe Halloween. Councilmember Soderberg: Reminded everyone the winter parking restrictions go into effect November 1, no parking on city streets between 2:00 a.m. - 5:00 a.m. He was approached by the Lion's Club to put up signage near the gateway signs at the entrances to the city. The right-of-ways are state and county right-of-ways. He asked if the city would be willing to facilitate local organizations in placing signs in those areas. Community Development Director Carroll stated every Rotary Club across the country has been asked to do a Centennial project. The local Rotary Club would like to explore the possibility of an electronic message board showing what events are happening in town. They are looking at different styles. Sometimes there are structures associated with them that have maps of parks and trails. There may be an opportunity for cooperative ventures between local organizations. Staff could work with the organizations to stay within the sign ordinance guidelines and obtain permission to use state and county right-of-ways. Mayor Ristow agreed it would be a good project. Councilmember Cordes did not have any problem with it, but she would not like to see them next to the gateway signs. Interim City Administrator Siebenaler: Reminded Council that on October 23 Mayor Ristow and Councilmember Fogarty will be having breakfast with the Chamber. The topic will be downtown development and city hall. His second issue dated back to February 18,2003 when staffwas asked to look at methods for filling Council vacancies. It has been a year since the last election and the next election will be in a year. Staff would like Council to discuss how future vacancies might be filled. He reminded Council anything they do is not binding on future Councils. Staffhas contacted the Secretary of State's Office and the City Attorney has researched statutes surrounding Council vacancies. Councilmember Cordes asked if this would be better suited for a workshop. She stated she could talk about this for the next hour. Councilmember Fogarty also felt a workshop was a great idea. Staffwill bring this back at the next Council meeting to set a workshop. Councilmember Fitch stated if this is not binding on future Councils no matter what this body of five agrees on the next body of five could totally disagree. Interim City Administrator Siebenaler stated you would be creating a policy for the remainder of your terms or the remainder of your time as a five- person board. Mayor Ristow stated the policy would remain until future Councils wanted to change it. Councilmember Cordes asked if there was a way to make it an ordinance. Attorney Jamnik replied even with an ordinance, Council could repeal or amend it at any time. Either before or after a vacancy is declared. Councilmember Cordes then asked if it could be a referendum at the next election. Attorney Jamnik replied we do not have the ability to do that as we are not a charter city. Even with that, the Council could vote to remove the charter. Council Minutes (Regular) October 20, 2003 Page 5 Interim City Administrator Siebenaler reminded everyone CEEF will be sponsoring the Halloween Walk at North Trail Elementary School on October 31. Mayor Ristow: Thanked Premier Bank and their employees, Park and Recreation Director Distad, and Dwight Bjerke for the work on the new sign at the ice arena. He urged everyone to support the Tigers football team in the playoffs. 14. ADJOURN MOTION by Cordes, second by Soderberg to adjourn at 7:40 p.m. APIF, MOTION CARRIED. Respectfully submitted, /,1 -T-ci~ /?~7 ~~ L~'/C/'- ,;/ {./ Cynthia Muller Executive Assistant City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us 7~ TO: Mayor, Council Members, Interim City Adrninistrat FROM: Robin Roland, Finance Director SUBJECT: Capital Outlay - Finance DATE: November 3, 2003 INTRODUCTION For customer convenience, the City has a payment drop box at city hall and rents a drop box at the Econofoods. Staff proposes that a payment drop box be installed at the Central Maintenance Facility. DISCUSSION The municipal campus located at 195th Street and Pilot Knob Road is an ideal location for the placement of a secure payment drop box of the same design as the drop box at city hall. Installation of this drop box would provide additional customer convenience to residents of the northern portion of the city. BUDGET IMPACT The cost of the drive up payment drop box is $1,858 and would be split four ways between the Water, Sewer, Storm water and Solid Waste enterprise funds. ACTION REOUIRED Approve the installation of a payment drop box at the Central Maintenance Facility at a cost of$1,858. Z::R'd/ Robin ROI~.--p Finance Director ,I \V\bDEL~500 D\ G 5'f()Jer~ CMJ(NET I\tr\~ (A1-J f Mf\'\eNT C. eN-recLs. City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us 7~ FROM: Mayor, Councilmembers and Interim City Admini# Lisa Shadick, Administrative Services Director TO: SUBJECT: Gambling Event Permit - Southern Dakota County Sportsmen's Club DATE: November 3, 2003 INTRODUCTION The Southern Dakota 'County Sportsmen's Club is requesting a Gambling Event Permit for a rame to be held at the Farmington American Legion. DISCUSSION Per State Statute 349.166 and pertinent City Code, a Gambling Permit must be issued by the City for this type of event. An application has been received, along with the appropriate fees. The City Attorney has reviewed the application and the attached resolution approving the request. BUDGET IMPACT Gambling permit fees are included in the revenue portion of the 2003 budget. ACTION REOUESTED Consider the attached Resolution granting a Gambling Event Permit to Southern Dakota County Sportsmen's Club at the Farmington American Legion, 10 N 8th Street, on January 17,2004. Respectfully submitted, , ~./t..~t:2~. Lisa Shadick Administrative Services Director RESOLUTION NO. R -03 APPROVING A MINNESOT A LAWFUL GAMBLING EVENT PERMIT APPLICATION FOR SOUTHERN DAKOTA COUNTY SPORTSMEN'S CLUB, INC. Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota, was held in the Council Chambers of said City on the 3rd day of November 2003 at 7:00 p.m. Members Present: Members Absent: Member introduced and Member seconded the following: WHEREAS, pursuant to M.S. 349.166, the State of Minnesota Gambling Board may not issue or renew a Gambling Event Permit unless the City Council adopts a Resolution approving said permit; and, WHEREAS, the Southern Dakota County Sportsmen's Club, Inc. has submitted an application for a Gambling Event Permit to be conducted at the American Legion, 10 N. 8th Street, for Council consideration. NOW, THEREFORE, BE IT RESOLVED by the Farmington City Council that the Gambling Event Permit for the Southern Dakota County Sportsmen's Club Inc. to be conducted at the American Legion, 10 N. 8th Street is hereby approved. This resolution adopted by recorded vote ofthe Farmington City Council in open session on the 3rd day of October 2003. Mayor Attested to the day of 2003. Interim City Administrator SEAL 7d City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us TO: Mayor, Councilmembers and Interim City Admjnistra~ Randy Distad Parks and Recreation Director FROM: SUBJECT: Approving Submittal of an Application for Landfill Abatement Funds from Dakota County DATE: November 3, 2003 INTRODUCTION Dakota County has provided landfill abatement funding assistance to communities in Dakota County since 1989. DISCUSSION Dakota County Board Resolution No. 88-651 states that the County's portion of funding of recycling implementation and operating costs incurred by cities and townships will be through performance based funding. Communities over 5,000 in population are eligible to receive a $5,000 base per community plus $1.60 per household, based on 2002 Metropolitan Council household estimates. These funds assist the City in producing and distributing literature, promotional items and events that promote waste reduction and recycling programs in Farmington. BUDGET IMPACT The year 2004 maximum reimbursement for Farmington is $12,957. RECOMMENDATION Approve the attached resolution approving submittal of a grant application to Dakota County. ~ec~:UllY .submitted, . ~ J);tj) Randy Distad Parks and Recreation Director RESOLUTION NO. R -03 APPROVING AN APPLICATION FOR WASTE ABATEMENT FUNDING ASSISTANCE Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota, was held in the Council Chambers of said City on the 3rd day of November, 2003 at 7:00 p.m. Members present: Members absent: Member introduced and Member seconded the following resolution: WHEREAS, according to Dakota County Board Resolution No. 88-651, Dakota County presently provides funding assistance for landfill abatement activities based on performance based funding; and, WHEREAS, the City presently has an integrated resource recovery system of which curbside pickup of yard waste and recyc1ables are major components, and would be eligible for funding under the County program. NOW THEREFORE, BE IT RESOLVED that the application for Dakota County Waste Abatement Funding Assistance, a copy of which is on file in the office of the City Clerk, is hereby approved. BE IT FURTHER RESOLVED that the City Administrator is hereby authorized and directed to execute and forward the application for Waste Abatement Funding Assistance. This resolution adopted by recorded vote of the Farmington City Council in open session on the 3rd day of November, 2003. Mayor Attested to the day of , 2003. City Administrator SEAL <g"CL. City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us TO: Mayor, Councilmembers, Interim City AdmiIDstra~ FROM: Lisa Shadick, Administrative Service Director SUBJECT: 2004 License Renewal Public Hearing DATE: November 3,2003 , INTRODUCTION Pursuant to City Ordinance 3-12-6-2, a public hearing must be held to renew On-Sale Liquor Licenses, On-Sale Sunday Liquor Licenses, On-Sale Wine and Club Licenses. Ordinance 3-15- 8C regulates the renewal of Saunas and Therapeutic Massage Licenses. DISCUSSION The following establishments have submitted their applications for renewal: On-Sale Liquor - Fannington Lanes Long Branch Saloon and Eatery Gossips La Margarita Restaurant On-Sale Sunday - American Legion Club Eagles Club Fannington Lanes Long Branch Saloon and Eatery VFW Club Gossips . La Margarita Restaurant Club Licenses - Eagles Club VFW Club American Legion Club On-Sale Intoxicating Malt Liquor and On-Sale Wine -B & B Pizza The Ugly Mug Sauna and Therapeutic Massage - Rite Touch Therapeutic Massage Sherry Jackson Sharon Munich The required attachments, fees and insurance information have been submitted with the applications. Police Chief Siebenaler has reviewed the forms and approved the applications. BUDGET IMPACT The fees collected are as proposed in the revenue portion of the budget. ACTION REQUIRED Approve the 2004 On-Sale Liquor, On-Sale Sunday Liquor, On-Sale Intoxicating Malt Liquor, On-Sale Wine, Club, and Therapeutic Massage Licenses for the businesses listed above. Respectfully submitted, ~j:1.A~ Lisa Shadick Administrative Services Director lOa.- City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us TO: Mayor and councilmemb+ FROM: Daniel M. Siebenaler, Interim City Administrator SUBJECT: City Council Workshop DATE: November 3, 2003 INTRODUCTION / DISCUSSION Staff is suggesting that the City Council set a workshop date to discuss the following three topics. . Council Policy on filling vacant council seats. . Pavement Management . New City Hall Workshops have typically been scheduled on the third Wednesday of the month. However, due to upcoming holidays, conflicts with meetings of other commissions and the vacation schedules of various participants, staff is suggesting two possible dates in December on the 3rd or the 10th. ACTION REQUESTED Set date and time of City Council workshop. Daniel M. Siebenaler Interim City Administrator 106 City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us TO: Mayor, Council Members, \~ Interim City Administrator 17 FROM: Jim Atkinson Assistant City Planner SUBJECT: Administrative Policy for Minor MUSA Extensions DATE: November 3,2003 INTRODUCTION The City's current MUSA policy excludes certain types of projects from the full MUSA review process. The full process includes analysis and recommendations by the MUSA Review Committee, review and comment by the Planning Commission, and final approval by the City Council. Properties excluded from the full process may bypass the MUSA Review Committee and the Planning Commission and proceed directly to the City Council for its consideration. Staff is recommending minor changes to the policy regarding those properties that are eligible for exclusion. DISCUSSION The current MUSA policy excludes the following properties from the full process: Non-profit and other governmental uses including school sites, Industrial Park expansion, and completion of previously approved Planned Unit Developments. Staff is requesting that the policy be amended as follows: (I) Include a 40-acre limitation on excluded properties. Currently, there is no maximum area limitation on excluded properties. However, it may be appropriate to include a maximum area, since larger projects would require more scrutiny given the greater impact on City services. A 40-acre maximum would be consistent with the threshold used by the Met Council to determine which MUSA expansions require review by the Council. Expansions less than 40 acres require only review by the Met Council staff. (2) Allow some projects under five (5) acres to be excluded from the full process. Minor projects that are consistent with MUSA expansion criteria and determined to promote responsible growth should be excluded from the full review process and proceed directly to the City Council for its consideration based on Staff recommendations. This exclusion would be appropriate given the relatively low impact on City services. The proposed MUSA policy would read as follows: The following properties are excluded from the full MUSA Review Committee process and may be processed and approved by the City Council upon recommendation by City staff: 1. Governmental properties less than 40 acres (including, but not limited to, educational facilities) 2. Non-profit properties less than 40 acres (including, but not limited to, religious facilities) 3. Other projects less than five (5) acres that are consistent with MUSA expansion criteria and determined by Staff to promote responsible growth. ACTION REQUESTED Approve the amended MUSA review policy regarding properties excluded from the full MUSA Review Committee process. Respectfully Submitted, 40- Jim Atkinson Assistant City Planner 4 TO: FROM: SUBJECT: DATE: INTRODUCTION IOe- City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax ({is.!) 463-2591 www.ci.farmington.mn.us Mayor, Council Members, ~W Interim City Administrator (P Jim Atkinson, Assistant City Planner City Council Appointment(s) to MUSA Review Committee November 3,2003 The City Council needs to appoint two of its members to serve on the MUSA Review Committee. DISCUSSION The Planning Commission discussed the composition of the MUSA Review Committee at its meeting on August 12,2003. The Commission's recommendations regarding the composition of the Committee were discussed and approved by the City Council at its meeting on September 2, 2003. The make-up of the Committee will be as follows: "Constituent Grou " Ci Elected Officials City Staff and/or Consultants ISD 192 Ci A ointed Officials Parks & Recreation Pro osed Re resentatives Ci Council members 2 City Staff Members (2) OR Ci Staff Member 1 and Ci ISD 192 Board Member (1) ISD 192 Staff Member (1) Plannin Commission members 2 Parks & Recreation Commission member (1) City Parks & Recreation staff member (1) Ci Council Interim City Administrator ISD 192 Board of Directors ISD 192 Superintendent Plannin Commission Parks & Recreation Commission Interim City Administrator Each of the five "constituent groups" identified above will need to appoint two representatives to serve on the MUSA Review Committee. The Planning Commission will be asked to appoint its two representatives at its next meeting on November 12th. Each MUSA Review Committee representative should be prepared to attend a series of meetings between mid-November and April of next year. The tentative timetable for the process, as previously approved by the City Council, is as follows: November MUSA Review Committee Review: 1. Timeline 2. Application Form 3. Criteria December 1. Distribute application form to property owners 2. Publicize commencement of MUSA review process January 1. Deadline for submission of applications 2. Initial review of applications by City Staff; preparation of staff comments February Consideration (by MUSA Review Committee) of applications and Staff comments March 1. MUSA Review Committee makes recommendations to Planning Commission 2. Planning Commission prepares comments April 1. City Council considers recommendations and comments of MUSA Review Committee and Planning Commission 2. City Council decides whether, when, and to whom MUSA extensions will be granted. The members of the MUSA Review Committee will be asked to finalize details regarding this preliminary timetable at their first meeting in late November. ACTION REOUESTED Motion to appoint and on the MUSA Review Committee to serve as City Council representatives Respectfully Submitted, cJ-~ I Jim Atkinson Assistant City Planner JOd City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us TO: Mayor, Council Members, Interim City Administrator FROM: Robin Roland, Finance Director SUBJECT: Gas Franchise Ordinance DATE: November 3, 2003 INTRODUCTION The existing Gas Franchise Ordinance with Aquila (formerly Peoples Natural Gas! Northern Natural Gas) will expire November 6,2003. DISCUSSION Since the early 20th century, the state has delegated to municipalities the state's right to grant utility franchises. Municipalities have been granted powers to regulate the use of public property within the corporate limits to protect the health and welfare of the general public. A franchise is regarded as more than an easement, lease or license to use the streets and other public property. The existing Gas franchise was adopted in 1978 and allowed Peoples Natural GasINorthern Natural Gas/Aquila to erect and maintain a gas plant and system within the City for a period of 25 years. The proposed ordinance allows essentially the activities to take place for the next IS years. It also includes language allowing the City of Farmington to implement a Franchise Fee at any time during the duration of the franchise with 90 day notice. Staff will bring forward a Franchise Fee proposal subsequent to adoption of this ordinance. ACTION REOl!IRED Adopt the attached ordinance granting a nonexclusive natural gas franchise to Aquila for IS years. ;W4Z7 , Robin Roland Finance Director ORDINANCE NO. CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA AN ORDINANCE GRANTING AQUILA, INC., D/B/A AQUILA NETWORKS, A DELAWARE CORPORATION, ITS SUCCESSORS AND ASSIGNS, A NATURAL GAS FRANCIDSE AND THE AUTHORITY TO CONSTRUCT, OPERATE, MAINTAIN, AND EXTEND A NATURAL GAS DISTRIBUTION PLANT AND SYSTEM, AND GRANTING THE RIGHT TO USE THE STREETS, ALLEYS, AND OTHER PUBLIC PLACES WITIDN THE PRESENT OR FUTURE CORPORATE LIMITS OF THE CITY OF FARMINGTON, MINNESOTA THE CITY COUNCIL OF THE CITY OF FARMINGTON ORDAINS: FRANCHISE GRANTED The City of Fannington, Minnesota, (hereinafter referred to as "Grantor") hereby grants a non- exclusive franchise to Aquila, Inc, d/b/a Aquila Networks, a Delaware corporation, (hereinafter called "Grantee"), its lessees, successors and assigns. Grantee is hereby granted the right, privilege, franchise, permission and authority to lay, construct, install, maintain, operate and extend in, along, over or across the present and future streets, alleys, avenues, bridges, public rights-of-way and public places as are now within the present or future limits of said Grantor, a natural gas distribution system and all facilities necessary for the purpose of supplying natural gas or processed gas for all purposes to the inhabitants of said Grantor and consumers in the vicinity thereof, and for the distribution of natural gas from or through said Grantor to points beyond the limits thereof. Such facilities shall include, but not be limited to, all mains, services, pipes, conduits and appliances necessary or convenient for transmitting, transporting, distributing and supplying natural gas for all purposes for which it may be used, and to do all other things necessary and proper in providing natural gas service to the inhabitants of Grantor and in carrying on such business. FRANCHISE FEE OPTION In accordance with Minnesota law, during the term of this franchise, Grantor may, in its discretion and only after 90 days prior written notice to Grantee, a public hearing, and the affirmative vote of Grantor's City Council, impose a franchise fee by separate ordinance on customers located within the corporate city limits of Grantor. The method of assessment and collection of any franchise fee enacted by Grantor shall be based on one of the following or an alternate method mutually acceptable to both the Grantor and Grantee: (1) Percentage of gross receipts of regulated sales or transportation revenues collected within Grantor's corporate city limits; (2) Volumetric fee based on the delivery of energy within Grantor's corporate city limits; or (3) Flat fee collected on a nondiscriminatory basis from Customers who are located within Grantor's corporate city limits. At Grantor's request, Grantee may propose ordinance language that would implement the authorized franchise fee. For the avoidance of doubt, it is Grantor's intent that any franchise fee imposed by Grantor in accordance with this provision shall be fairly and reasonably designed so as not to establish or foster an economic advantage for energy providers in competition with Grantee that are subject to Grantor's franchising authority. TERM The rights and privileges granted by this Ordinance shall remain in effect for a period of 15 years from the effective date of this Ordinance. GOVERNING RULES AND REGULATIONS This Ordinance is granted subject to all conditions, limitations and immunities now provided for, or as hereafter amended, and applicable to the operations of a public utility, by State or Federal law. The rates to be charged by Grantee for service within the present or future corporate limits of Grantor and the rules and regulations regarding the character, quality and standards of service to be furnished by Grantee shall be under the jurisdiction and control of such regulatory body or bodies as may, from time to time, be vested by law with authority and jurisdiction over the rates, regulations and quality and standards of service to be supplied by Grantee. Provided however, should any judicial, regulatory or legislative body, having proper jurisdiction, take any action that precludes Grantee from recovering from its customers any cost associated with services provided hereunder, then Grantee and Grantor shall renegotiate the terms of this Ordinance in accordance with the action taken, so as to allow Grantee to be made whole economically. In determining the rights and duties of the Grantee, the terms of this franchise Ordinance shall take precedence over any conflicting terms or requirements contained in any other Ordinance enacted by the Grantor. If an energy supplier is unable to furnish an adequate supply of energy due to an emergency, an order or decision of a public regulatory body, or other acts beyond the control of the Grantee, then the Grantee shall have the right and authority to adopt reasonable rules and regulations limiting, curtailing or allocating extensions of service or supply of energy to any customers or prospective customers, and withholding the supply of energy to new customers, provided that such rules and regulations shall be uniform as applied to each class of customers or prospective customers, and shall be non-discriminatory as between communities receiving service from the Grantee. CONSTRUCTION AND MAINTENANCE OF COMPANY FACILITIES Any pavements, sidewalks or curbing taken up and any and all excavations made shall be done in such a manner as to cause only such inconvenience to the inhabitants of Grantor and to the general public as is reasonably necessary; and repairs and replacements shall be made promptly by Grantee, leaving such properties in as good as condition as existed immediately prior to excavation. Grantee agrees that for the term of this grant, it will use its best efforts to maintain facilities and equipment sufficient to meet the current and future energy requirements of Grantor, its inhabitants and industries. While maintaining its facilities and equipment, Grantee shall obtain permits as required by ordinance, except that in emergency situations, Grantee shall take immediate unilateral actions as it determines are necessary to protect the public health, safety, and welfare; in which case, Grantee shall notify Grantor as soon as reasonably possible. Grantor will give Grantee reasonable notice of plans for street improvements where paving or resurfacing of a permanent nature is involved that affect Grantee's facilities. The notice shall contain the nature and character of the improvements, the rights-of-way upon which the improvements are to be made, the extent of the improvements and the time when the Grantor will start the work, and, ifmore than one right-of-way is involved, the order in which this work is to proceed. The notice shall be given to the Grantee a sufficient length of time, considering seasonable working conditions, in advance of the actual commencement of the work to permit the Grantee to make any additions, alterations, or repairs to its facilities. EXTENSION OF COMPANY FACILITIES Upon receipt and acceptance of a valid application for service, Grantee shall, subject to its own economic feasibility criteria, make reasonable extensions of its distribution facilities to serve customers located within the current or future corporate limits of Grantor. RELOCATION OF COMPANY FACILITIES If Grantor elects to change the grade of or otherwise alter any street, alley, avenue, bridge, public right-of-way or public place for a public purpose, Grantee, upon reasonable notice from Grantor, shall remove and relocate its facilities or equipment situated in the public rights-of-way, if such removal is necessary to prevent interference and not merely for the convenience of the Grantor, at the cost and expense of Grantee. If Grantor orders or requests Grantee to relocate its facilities or equipment for the primary benefit of a commercial or private project, or as a result of the initial request of a commercial or private developer or other non-public entity, and such removal is necessary to prevent interference and not merely for the convenience of the Grantor or other right-of-way user, Grantee shall receive payment for the cost of such relocation as a precondition to relocating its facilities or equipment. Grantor shall consider reasonable alternatives in designing its public works projects so as not arbitrarily to cause Grantee unreasonable additional expense in exercising its authority under this section. Grantor shall also provide a reasonable alternative location for Grantee's facilities. Grantor shall give Grantee written notice of vacating of a public right-of-way. Vacating of a public right-of-way shall not deprive the Grantee of its right to operate and maintain existing facilities, until the reasonable cost of relocating the same are first paid to the Grantee. Any person or corporation desiring to move a building or other structure along, or to make any unusual use of any street, alley, avenue, bridge, public right-of-way or public place which shall interfere with the facilities or equipment of the Grantee, shall first give notice to the Grantor and the Grantee and a pay a sum sufficient to cover the expense and damage incident to the moving of Grantee's facilities and equipment. CONFIDENTIAL INFORMATION Grantor acknowledges that certain information it might request pursuant to this franchise may be of a proprietary and confidential nature. If Grantee requests that any information provided by Grantee to Grantor be kept confidential due to such proprietary or commercial value, Grantor and its employees, agents, and representatives shall maintain the confidentiality of that information, to the extent allowed by law. If Grantor is requested or required by legal or administrative process to disclose any such confidential information, Grantor shall promptly notify Grantee of such request or requirement so that Grantee may seek an appropriate protective order or other relief. Grantor shall use all reasonable efforts to ensure that the confidentiality of Grantee's confidential information is maintained. FORCE MAJEURE It shall not be a breach or default under this franchise if either party fails to perform its obligations hereunder due to Force Majeure. Force Majeure shall include, but not be limited to, the following: I) physical events such as acts of God, landslides, lightning, earthquakes, fires, freezing, storms, floods, washouts, explosions, breakage or accident or necessity of repairs to machinery, equipment or distribution or transmission lines; 2) acts of others such as strikes, work-force stoppages, riots, sabotage, insurrections or wars; 3) governmental actions such as necessity for compliance with any court order, law, statute, ordinance, executive order, or regulation promulgated by a governmental authority having jurisdiction; and any other causes, whether of the kind herein enumerated or otherwise not reasonably within the control of the affected party to prevent or overcome. Each party shall make reasonable efforts to avoid Force Majeure and to resolve such event as promptly as reasonably possible once it occurs in order to resume performance; provided, however, that this provision shall not obligate a party to settle any labor strike. HOLD HARMLESS Grantee, during the term of this Ordinance, agrees to save harmless Grantor from and against all claims, demands, losses and expenses arising directly out of the negligence of Grantee, its employees or agents, in the constructing, operating, and maintaining of distribution and transmission facilities or appliances of Grantee; provided, however, that Grantee need not save harmless Grantor from claims, demands, losses and expenses arising out ofthe negligence of Grantor, its employees or agents. SEVERABILITY If any clause, sentence or section of this Ordinance is deemed invalid by any judicial, regulatory or legislative body having proper jurisdiction, the remaining provisions shall not be affected. NONWAIVER Any waiver of any obligation or default under this franchise shall not be construed as a waiver of any future defaults, whether of like or different character. REPEAL CONFLICTING ORDINANCES This ordinance, when accepted by Grantee as provided below, shall constitute the entire agreement between the Grantor and the Grantee relating to this franchise and the same shall supersede all prior ordinances pertaining to this franchise agreement, and any terms and conditions of such prior ordinances or parts of ordinances in conflict herewith are hereby repealed. Ordinance No. 078-72 of the City of Farmington, Minnesota is hereby repealed as of the effective date hereof. EFFECT AND INTERPRETATION OF ORDINANCE The captions which precede each section of this ordinance are for convenience in reference only and shall not be taken into consideration in the interpretation of any of the provisions of this ordinance. EFFECTIVE DATE AND ACCEPTANCE This Ordinance shall become effective and be a binding contract between the Grantor and Grantee, upon its final passage and approval by Grantor, in accordance with applicable laws and regulations, and upon acceptance by Grantee by written instrument within sixty (60) days of passage by the governing body, and filed with the City Clerk of Farmington, Minnesota. The City Clerk shall sign and affix the community seal to acknowledge receipt of such acceptance, and return one copy to Grantee. If Grantee does not, within sixty (60) days following passage of this Ordinance express in writing its objections to any terms or provisions contained therein, or reject this ordinance in its entirety, Grantee shall be deemed to have accepted this ordinance and all of its terms and conditions. This ordinance shall be effective immediately upon its passage. ADOPTED this _ day of ,2003, by the City Council of the City of Farmington. CITY OF FARMINGTON By: Gerald G. Ristow, Mayor ATTEST: By: Daniel M. Siebenaler Interim City Administrator Approved as to form the day of 2003. By: City Attorney SEAL Published in the Farmington Independent the _ day of 2003.