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HomeMy WebLinkAbout09.19.22 Council Minutes COUNCIL MINUTES REGULAR September 19, 2022 1. CALL TO ORDER The meeting was called to order by Mayor Hoyt at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE Mayor Hoyt led the audience and Council in the Pledge of Allegiance. 3. ROLL CALL Members Present: Hoyt, Bernhjelm, Lien, Porter, Wilson Members Absent: None Also Present: Leah Koch, City Attorney; Lynn Gorski, City Administrator; Julie Flaten,Assistant City Administrator/HR Director; Chris Regis, Finance Director;Justin Elvestad, Fire Chief; Kellee Omlid, Parks and Recreation Director; Cynthia Muller, Administrative Assistant Audience: Dan Pecarina 4. APPROVE AGENDA Move item 7k) Staff Changes and Recommendations to New Business. MOTION by Wilson, second by Porter to approve the agenda. APIF, MOTION CARRIED. S. ANNOUNCEMENTS 6. CITIZEN COMMENTS 7. CONSENT AGENDA MOTION by Bernhjelm, second by Lien to approve the Consent Agenda as follows: a) Approved JPA Solid Waste and Recycling Coordinator-Administration b) Adopted RESOLUTION R63-22 Appointing 2022 General Election Judges - Administration C) Adopted RESOLUTION R64-22 Approving a Gambling Event Permit—Farmington Firefighters Auxiliary Association -Administration d) Acknowledged City Administrator Performance Review Summary—City Council e) Approved September 6, 2022, City Council Work Session and Meeting Minutes— Administration f) Approved Fire Station#2 Maintenance Service Agreement—Facilities g) Approved Bills—Finance h) Approved Purchasing Site Furnishings for Downtown—Parks i) Adopted ORDINANCE 022-769 and Summary Ordinance Amending Section 10-5- 17 (Industrial) of the Zoning Code Allowing Offices as a Permitted Use— Community Development j) Adopted RESOLUTION R65-22 Granting a Time Extension for Recording of Final Plat—Vita Attiva at South Creek Third Addition —Community Development APIF, MOTION CARRIED. 8. PUBLIC HEARINGS Council Minutes(Regular) September 19,2022 Page 2 a) Notice of Intent to Consider Issuance of Cable Franchise—Administration Hiawatha Broadband Communications (HBC) applied for a cable franchise. This also includes internet,TV and phone services. The build out would begin in Farmington in 2023 and full build out would be completed in 2025. HBC will finance the project themselves and have an office in Farmington. They will also connect city parks and other facilities. Mr. Dan Pecarina, President of HBC, stated they have 30+fiber communities in southern MN. MOTION by Wilson, second by Bernhjelm to close the public hearing. APIF, MOTION CARRIED. Mr. Pecarina stated their biggest challenge is they want to be a good steward. It can be difficult to make homeowners happy after digging a big hole in their front yard. They advise them in advance, while they are there and provide contact information. A crew follows later with dirt to fill the hole. They make sure they do a good job setting up in one community before moving on to the next. They would be happy to join the Dakota County Regional Chamber. In smaller towns everything revolves around schools and churches that's where they excel. They will build a brick and mortar building here and will be hiring employees here. Councilmembers were very pleased to have HBC coming to Farmington and thanked Mr. Pecarina for reaching out to us. MOTION by Porter, second by Wilson to negotiate franchise terms with HBC and present the final recommendation for city council action. APIF, MOTION CARRIED. 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS 11. UNFINISHED BUSINESS a) Approve Final Proposal for USDA Lease Amendment -Administration City Administrator Gorski has been negotiating with the USDA to lease additional office space in the expansion area at City Hall. The lease is for 16 years with a five-year guarantee. The city will be required to build out the space to be rented with an estimated cost of$260,000. Staff is recommending using the general fund and the future payoff of the first build out to pay for the build out cost. The costs will be covered in the rent the USDA pays in the first five years of the lease, which includes an interest rate of 6%. If the USDA ends the lease prior to five years, they will be responsible for repaying the build out costs. Their rentable square feet will go from 2,610 sq. ft. to 5,181 sq.ft. The USDA will have the use of 42 parking spots in the city lots and a 300 sq. ft. fenced area located off of Second Street. The USDA will pay$141,493 annually the first five years of the contract and $92,740 annually in years 5-10; $112,428 annually in years 11-16. The price reduction after year 5 is associated with the build out costs being paid in full after five years. The previous lease in 2018 was signed for$29,545 for Council Minutes(Regular) September 19,2022 Page 3 years 1-10 and $19,575 in years 11-20. MOTION by Bernhjelm, second by Lien to approve the final lease proposal with the USDA for the lease of space at Farmington City Hall and authorize the city administrator to execute all documents associated with the lease. APIF, MOTION CARRIED. 12. NEW BUSINESS a) Staff Changes and Recommendations MOTION by Bernhjelm, second by Wilson to approve the appointment of Ethan Stender as a seasonal arena supervisor. APIF, MOTION CARRIED. b) Adopt Resolution Approving Preliminary 2023 General Fund Budget and Tax Levy- Finance The 2023 budget was prepared in line with council's goals. Property taxes continue to be the primary source of income for the city. Highlights include -for 2023, LGA was cut by$105,587; in 2022 three new positions were added and in 2023 there will be three more new positions, solid waste has been transferred to the general fund, the final 2023 budget will be approved in December 2022. The net tax levy for 2023 is$12,749,000 which is a 5.96%increase over 2022. This amounts to a $28 increase in property taxes for the average valued home. Revenues are projected to be$3.8 million which is a 5.13% increase. Expenditures are projected to be $16.8 million which is a 7.34%increase. Finance Director Regis reviewed special revenue funds, capital project funds and enterprise funds. Councilmembers commended staff on a great job collaborating for the first year and felt this increase is a reasonable amount for residents. Council asked about trail maintenance and that is kept in a separate fund. There is$50,000 set aside for EAB treatment, but that needs to increase each year as the city has 3300 ash trees in boulevards. Council asked how cities like West and South St. Paul have $2 million in LGA and we have zero. It is a complex formula and involves tax capacity valuation. The right approach is to assume we will receive zero. Council was a little worried about the permit number as the market has shifted. Staff has confirmed this amount with builders and their expectations. Council noted this budget process started in June with understanding what the baseline is. We have been making improvements and ensuring proper funding. We still face challenges and applauded taking small steps. Residents should notice on their tax statement the increase in their property valuation. MOTION by Bernhjelm, second by Wilson to adopt RESOLUTION R66-22 establishing the 2023 preliminary tax levy and setting the public hearing for the final 2023 budget and tax levy for December 5, 2022. APIF, MOTION CARRIED. 13. COUNCIL ROUNDTABLE Council Minutes(Regular) September 19,2022 Page 4 Wilson: We approved 76 election judges on the consent agenda tonight and thanked Administrative Assistant Cindy Muller for her work on elections. His mom is the newest resident of Farmington. Thanked Parks and Recreation Director Omlid for the food truck event last week. Faith United Methodist Church is looking for volunteers to help with Loaves and Fishes. Porter: She saw our public service departments in action in different capacities this weekend and thanked them for the work they do. Bernhjelm: One of council's goals is telling our story. Communications Specialist Lauren Siebenaler has been selected as a finalist for the Leaders in Local Government award to be held September 29, 2022. She read the submission about the work Lauren has done celebrating Farmington's 150th Anniversary. Lien: Encouraged residents that have ash trees to look for EAB and treat it or safely remove the tree. Koch: The courts are getting through the backlog of cases and are 62%done. Flaten: Lauren's nomination for the Local Government award is great news. An employee appreciation picnic will be held Wednesday. This week staff will be conducting interviews for a public works director and community development director. Gorski: Gave an update on the stages of the Spruce Street project. Notices will be placed on front doors of what to expect and residents can sign up for email notifications. The contractor will be reassessing the project on October 7 and may have to delay it until 2023 if the weather becomes too cold. Omlid: The Rambling River Center turns 40 this year and there will be a celebration on Thursday. She thanked Rambling River Center Coordinator Missie Kohlbeck for her work on this event. Regis: He's working on tax forms. Elvestad: The Fire Station Open House will be October 12 and turkey bingo is November 12. Hoyt: School is in session so watch for buses and kids. Thank you to Great Oaks Academy for resolving transportation issues. Congratulations to Empire for officially incorporating two weeks ago. Patriotic Day will be held November 10 at Farmington High School and he encouraged residents to attend. 14. ADJOURN MOTION by Bernhjelm, second by Porter to adjourn at 7:58 p.m. APIF, MOTION CARRIED. Council Minutes(Regular) September 19,2022 Page 5 Respectfully submitted, Cynthia wlulCer Cynthia Muller Administrative Assistant