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HomeMy WebLinkAbout11.14.22 Work Session Minutes City of Farmington City Council Work Session Minutes November 14, 2022 1. Call to Order Mayor Hoyt called the work session to order at 5:15 p.m. Present: Hoyt, Bernhjelm, Lien, Porter, Wilson Also Present: Joel Jamnik,City Attorney; Lynn Gorski,City Administrator; Chris Regis, Finance Director;John Powell, City Engineer;Justin Elvestad, Fire Chief; Kellee Omlid, Parks and Recreation Director;Cynthia Muller,Administrative Assistant 2. Approve Agenda MOTION by Wilson, second by Porter to approve the agenda. APIF, MOTION CARRIED. 3. Discussion Items a. Discuss Gambling Permit Ordinance At the November 7, 2022, City Council meeting, two gambling premise permit applications from Farmington Youth Hockey Association (FYHA) were tabled to discuss the gambling ordinance at this work session. Mayor Hoyt asked council to discuss whether there should be additional oversight within the ordinance and consider if there is an opportunity for all non-profits to utilize charitable gambling. Some cities regulate the number of premise permits allowed. Does council think this warrants discussion? Should we consider directing staff to do additional research? We have 11 establishments within Farmington that have onsite gambling. FYHA has two more permit applications for 8 out of 11 establishments. Councilmember Wilson asked, in 1998 council stated the goal is for 50%of the profits be given back to the community. Council has never asked to see the books. Would council normally do that? City Attorney Jamnik stated we have a requirement that a report should be filed. At the time the ordinance passed, regional and state organizations were using gambling. We didn't have that issue, so there was no need to check. Cities are entitled to verify and do periodic checks. It is a matter of staff following up. Councilmember Wilson asked if council felt we need to have equity of opportunity for other organizations, what is the appropriate balance? City Attorney Jamnik noted that is a policy decision when you do not have an application pending. Mayor Hoyt confirmed if council decides to change the gambling ordinance, it would not affect the permit applications in hand. Councilmember Bernhjelm asked where this is stemming from. Mayor Hoyt stated he received a phone call from another group that was not able to conduct gambling at a business. Councilmember Bernhjelm asked if this is an issue in terms of rolling applications and being approved as they come up. We have never had competing interest in a location. Mayor Hoyt stated the gambling board requires a certain amount of work from us. Where does that purview start and stop? Councilmember Council Work Session Minutes November 14,2022 Page 2 Wilson was concerned that there is competition between organizations to find locations. Mayor Hoyt stated once a premise permit is issued, unless there is a reason to pull the organization's gambling license, local authority cannot deny a permit. City Attorney Jamnik confirmed that is correct. It's a screen to okay the site for gambling. The business decides who they want to go with. It's a relationship between the owner of the site and the gambling organization. Councilmember Porter stated she believes in free market. Mayor Hoyt asked if council feels we have a responsibility to ensure any non-profit has an opportunity for fair trade in the city? Councilmember Bernhjelm stated they already can. Councilmember Wilson stated any further regulation would stifle that. City Attorney Jamnik noted charitable gambling is a regulated industry. Councilmember Lien stated gambling has been a monopoly for years. City Attorney Jamnik stated any issues get resolved through the gambling control board. Councilmembers agreed it is a business decision and council should not get involved. Fire Chief Elvestad stated with the relief association moving out of the business, that is a significant loss for the fire department. Mayor Hoyt stated each organization has an obligation to conduct themselves in a way to ensure there is future opportunity for them. Council reached a consensus to not change anything with the gambling ordinance. Mr. Eric Stahl, Farmington Lanes, stated prior to the Fire Relief Association having pull tabs,funds went outside of Farmington. We sought out FYHA because we want the money staying in Farmington. Councilmember Porter asked about obtaining reports. Councilmember Bernhjelm stated staff should get current on that. Mr. Stahl stated FYHA didn't approach them, they approached FYHA. We chose to part ways with the Fire Relief Association. Mr.Jeff Flynn, Wrestling Board, stated there is an impression that FYHA has a monopoly. The Wrestling Board just lost Las Enchiladas and are down to only the Long Branch. FYHA has eight businesses in Farmington. FYHA is doing a good job with marketing. He asked if we could find a way to partner within the community with FYHA. Ms. Amy Holmes, FYHA, stated they do give back 75%of proceeds to the community. She could see no reason not to support wrestling. We are a non-profit and do it well. We are not out soliciting. Other sports do not have gambling. It's not a monopoly if five organizations hold a gambling permit. Mr.Tim Galloway, FYHA, asked why do businesses leave other partnerships and seek out FYHA? Ms. Holmes stated FYHA has a paid gambling manager. Mr. Ryan Bjorkstrand, FYHA, Council Work Session Minutes November 14,2022 Page 3 stated we built a reputation years ago and are trying to keep that. Mr. Gus Groslie, FYHA, stated most of us have kids in multiple sports. All organized non-profits need money. Hockey is the most expensive. Council reached a consensus to not get involved between businesses and organizations. b) Discuss Tabled Resolution Approving Gambling Premise Permits for Farmington Youth Hockey Association These permits will be on the November 21, 2022, council agenda for approval. c) 2023 Draft Fee Schedule City council and staff reviewed proposed changes to the 2023 fee schedule. Fire—False alarm rate increase is due to commercial alarms requiring more resources. There has been an increase in residential false alarms, but we are sending more response to commercial calls. Equipment increase is to keep up with maintenance costs. The fee for open burning is consistent with other departments. Service testing is someone pulling an alarm to see if it works and causes a nuisance. Mayor Hoyt asked that any changes in fees should be looked at in a way that it covers the budget. If we are deficient in a line item in one year, next year make sure the increase covers it. Parks and Rec—The Rambling River Center membership fee does not cover costs. We also increased the fee for room rentals. If we get the grant funding to remodel, rentals could be a significant source of revenue. We will get$400 additional with a $1 membership increase. If a resident volunteers, their membership is free. Council noted we have not increased fees in awhile. A modest increase is better than a significant increase. We have a lot of programs we can finance through a subsidy and cautioned levying for programs. Arena advertising increased $10/year to cover maintenance costs. Ice rental increased $15/year. We showed a loss so we are increasing everything at the arena. Also increased turf rental by$10. Rates go from 6/1/23 to 5/31/24. This will allow us to break even. Council noted ice is in high demand. Make the rate to a point where we do not have this conversation anymore. We have put a significant investment in the arena. Rates need to go up. Staff was directed to increase arena rates to cover costs. Park development fee was increased to $25,686/acre. Outdoor fields have a $1 increase/participant fee. Farmington is the only city with park development fees and we cannot lose it. Council asked for the dollar amount on an annual basis and if we are ahead of our neighbors. Council Work Session Minutes November 14,2022 Page 4 Building permits—Solar panels were added to better identify them. Permit reprints were increased by half of the current fee. Council suggested looking at a flat fee vs building valuation. We are missing revenue with remodel work. Engineering— Utility rate increase of 5%was recommended by the Water Board and they also proposed a utility rate study be done in 2023. It would be paid for out of the sewer, water and storm water funds at an estimated cost of$30,000. There is also a 5% increase in sewer and storm water rates and a 3%increase in development fees. The water tower antenna base rate is increased by 5%. This increase is included in the lease schedule. The sanitary sewer trunk fee and water trunk fee are increased by 3%. Council noted we have gone several years without an increase, and we projected increases over time. Mr. Ben Blomgren,JTN Communications, commented on the fact the antenna rates have a significant difference in purpose and scale. They have smaller antennas and occupy a smaller footprint. Our rate is 7-8 times more expensive than market rate. His company is based in Farmington and they provide rural internet service. Council directed staff to pull the antenna rates and compare them with neighboring cities and review national vs local carriers. Staff noted local or national antennas take up space on the tower. You have to consider cables coming out, etc. We could have another tier for antennas. Mr. Blomgren noted there is one attachment per tank vs one antenna per tank. On December 5, 2022,there will be a public hearing at the council meeting for the fee schedule. City Attorney Jamnik stated we can change the fee schedule any time other than for development fees and liquor fees. 4. City Administrator Update Upcoming December meetings: December 1—Boards and Commissions Annual Reception December 5—Council Work Session and Meeting December 12—Boards and Commissions Interviews December 19—Council Meeting 5. Adjourn MOTION by Wilson, second by Bernhjelm to adjourn at 7:07 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia -MuCler Cynthia Muller Administrative Assistant