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HomeMy WebLinkAbout06.05.23 Work Session Packet AGENDA Work Session Meeting 5:00 PM - Monday, June 5, 2023 Farmington City Hall Page 1. CALL TO ORDER 2. APPROVE AGENDA 3. DISCUSSION ITEMS Amend Fee Schedule for Small Antenna Installations Direct Staff to take the necessary steps to add language to the 2023 Fee Schedule which will allow for negotiated lease rates for small installations meeting the criteria suggested above. Agenda Item: Amend Fee Schedule for Small Antenna Installations - Pdf 2 - 12 Cardboard Recycling Bins Approve the removal of all cardboard recycling bins near the Maintenance Facility. Agenda Item: Cardboard Recycling Bins - Pdf 13 - 19 4. CITY COUNCIL COMMITTEE UPDATE 5. CITY ADMINISTRATOR UPDATE 6. ADJOURN Page 1 of 19 WORK SESSION AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: John Powell, Public Works Director Department: Engineering Subject: Amend Fee Schedule for Small Antenna Installations Meeting: Work Session - Jun 05 2023 INTRODUCTION: On November 14, 2022, the City Council discussed the proposed 2023 Fee Schedule. It was noted that the City’s Antenna Lease Rate is a set rate and does not differentiate between larger and smaller installations. City staff has gathered additional information and recommends that language be added to the fee schedule to allow the City to negotiate a reduced lease rate for smaller installations. DISCUSSION: Earlier this year, the City was notified by Sprint / T-Mobile that they are terminating their antenna lease on the Daisy Knoll tower. The 2022 revenue to the City from this one lease was over $47,000; they have recently initiated the physical decommissioning of this installation. Allowing for a negotiated lease rate for smaller installations could help replace at least some of this lost revenue. JTN Communication, a company based here in Farmington, has provided some information on what may be involved with a smaller antenna installation. Images showing the typical antenna size, mounting examples, and ground cabinet space needs are area attached. Based on a review of this and other information, Staff finds that this type of smaller installation would be much less intrusive to the maintenance and operation of water storage facilities and justifies a reduced lease rate. We suggest the following criteria to qualify for a negotiated antenna lease rate: 1. A ground lease area no greater than 30 square feet. 2. No alteration of the tank exterior coating for antenna mounting. BUDGET IMPACT: While the antenna lease rate for a smaller installation would likely be a fraction of the City’s standard fee, it will provide some additional revenue. ACTION REQUESTED: Direct Staff to take the necessary steps to add language to the 2023 Fee Schedule which will allow for negotiated lease rates for small installations meeting the criteria suggested above. ATTACHMENTS: 2023 Fee Schedule excerpt CC Work Session minutes 111422 Page 2 of 19 Antenna Size Mounting Example 1 Mounting Example 2 Cabinet Example Page 2 of 11 Page 3 of 19 17 WATER TOWER COMMUNICATION DEVICES 2023 Amount Lease Administration Fee $500 This fee must be paid prior to any research or site meetings. The fee covers staff time or outside costs to review plans and specifications. Surety may be required for any approved work. Lease rates noted are the initial rate indicated in any new lease agreements and the rate will increase by 5% annually on January 1 st, regardless of the date that the lease is signed or type of equipment. Base Lease Rate $4,124.80 ($49,497.59 annually) This lease rate covers up to 3 antennas and 300 sq. ft. of space at the base of the tower. Additional Antenna Lease Rate $1,374.98 ($16,499.70 annually) This rate will be added to the base lease rate, beginning with the 4th antenna array, for each additional antenna array. Additional Space Rental Lease Rate $7.62/month/sq. ft. ($91.44/year/sq. ft.) This charge will apply if the installation occupies more than a total of 300 sq. ft. at the base of the tower. Square footage will be calculated based on a rectangular area described by adding 3 ft. to the maximum width and length, or by the actual size of easement requested, whichever is larger. This will not include access easements, or line easements from the tower to the enclosure/equipment. MISCELLANEOUS 2023 Amount Ag Preserve Filing $75 Candidate Filing $5 10,000 - 100,000 population Code Enforcement Cost Recovery $75 Re‐Inspection/ Administrative Fee Plus Cost of Abatement Private Hauler – Commercial Dumpster Annual Fee $100 Page 3 of 11 Page 4 of 19 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 Page 4 of 11 Page 5 of 19 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, Page 5 of 11 Page 6 of 19 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. Page 6 of 11 Page 7 of 19 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 Page 7 of 11 Page 8 of 19 Page 8 of 11 Page 9 of 19 Page 9 of 11 Page 10 of 19 Page 10 of 11 Page 11 of 19 Page 11 of 11 Page 12 of 19 WORK SESSION AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: John Powell, Public Works Director Department: Engineering Subject: Cardboard Recycling Bins Meeting: Work Session - Jun 05 2023 INTRODUCTION: Earlier this year, the City removed the cardboard recycling bins on the west side of the 2nd Street/Oak Street intersection. They were on private property, and the property owner requested they be removed. The City has seven remaining cardboard recycling bins located northwest of the Maintenance Staff’s is it time, Staff consuming issues which ongoing to Due Facility. are recommendation to also remove the remaining bins. DISCUSSION: The City currently has seven bins open to the public near the Maintenance Facility for disposal of cardboard. Despite being emptied on a daily basis during the week, by Monday morning they are frequently overfilled with cardboard debris placed outside of t he bins. DSI indicates they are not able to empty the bins over the weekend. Public Works Staff routinely must pick up debris outside of the bins, including many items which have blown into nearby boulevards and ponds. Attached are images documenting the overfilling of the recycling bins over the past several weeks. The City has taken steps to reduce the overfilling of these bins, including: • An additional bin was placed at this site a couple of months ago bringing the total number of bins to seven. • Considered options for providing additional capacity such as the installation of a compactor, but this was not pursued for safety reasons. • Using addresses taken off debris laying outside of the bins, Code Enforcement has contacted residents and other property owners. About 40% of the addresses contacted were located outside of the City of Farmington. • News items pertaining to Cardboard Dumpster Usage Reminders and Business Recycling Reminders have been placed on the City website. Via communication with Violet Penman, the City’s Solid Waste & Recycling Coordinator, she indicates that Hastings is the only other nearby city that she is aware of that offers cardboard dumpsters for free public disposal. She also indicates that Farmington residents also have other options for cardboard disposal: Curbside recycling is weekly throughout Farmington, and cardboard is accepted in curbside bins. Excess cardboard can be neatly bundled and placed next to the bin for pickup with no extra charge. • Recycle Minnesota in Lakeville accepts cardboard for free. Page 13 of 19 • Alpha Services in Rosemount accepts cardboard for free. • The Recycling Zone in Eagan accepts cardboard for free. Violet further offered the following background: Dakota County requires that all businesses have recycling service, with an option to self-haul recycling to a recycling facility. Thus, businesses should have a recycling cart or dumpster as part of their recycling service that they can use for proper disposal of cardboard. The cardboard dumpsters are not a recycling facility and, thus, businesses cannot argue that they "self -haul recycling to a recycling facility." Dakota County Ordinance 110, Section 16.02, A4 also states that all businesses must "Ensure that the collection schedule and container capacity are sufficient to contain all the recyclables collected..." and Section 16.05, A2 states: "Property owners, managers, and event sponsors shall... Provide a collection schedule and containers adequate to meet the requirements of this o rdinance." Residents and businesses have multiple options for disposing of any excess cardboard. We also need to consider that vehicles parked at the recycling bins will interfere with City Staff traffic in this area that will be generated due to the new fueling facility. We also do not want to provide vehicles a reason for parking for extended periods near the fueling facility. We have found that even during snow removal operations, vehicles have been parked at the recycling bins for drop off which has interfered with snow removal efforts. BUDGET IMPACT: DSI will remove the bins at no cost to the City. ACTION REQUESTED: Approve the removal of all cardboard recycling bins near the Maintenance Facility. ATTACHMENTS: Bin Location Map Images Cardboard Page 2 of 7 Page 14 of 19 Page 3 of 7 Page 15 of 19 Page 4 of 7 Page 16 of 19 Page 5 of 7 Page 17 of 19 Page 6 of 7 Page 18 of 19 Page 7 of 7 Page 19 of 19