HomeMy WebLinkAbout08.21.00 Council Minutes
COUNCIL MINUTES
REGULAR
August 21, 2000
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, Soderberg, Strachan, Verch
None
City Attorney Jamnik, City Administrator Erar, City Management
Team
4. APPROVE A GENDA
MOTION by Cordes, second by Soderberg to approve the Agenda. APIF, MOTION
CARRIED.
5. ANNOUNCEMENTS
6. CITIZEN COMMENTS
a) Cable Franchise Agreement
This item was in response to comments raised at the August 7, 2000 Council
Meeting by Mr. Leon Orr regarding the City's cable franchise agreement.
Farmington has charged an annual cable franchise fee since 1971 in the form of a
flat fee until 1984 when a 3% franchise fee was imposed by City ordinance. The
Council ordinance adopted in December 1982, included the provision even then
that the franchise fee would be based on annual gross revenues of the franchisee.
This provision stipulating annual gross revenues would have been in effect since
that time, and is not new in terminology. City franchise fees are not a tax, but is a
user fee imposed on business concerns that privately utilize public right-of-way to
transact business for a profit. The City Council does not impose franchise fees on
cable subscribers but on companies who use public right-of-way. It is at the
company's discretion, not by the City, as to how franchise fees will be paid. It is
reasonable to argue that franchise revenues should benefit the entire community
and all City residents. Franchise fees are a financial return on publicly held assets
similar to other city investments that should be maximized to reduce the City's
reliance on the property tax levy. The composition of gross revenues is guided by
federal law and negotiated with the cable company.
Council Minutes (Regular)
August 21, 2000
Page 2
Councilmember Strachan stated how fees will be paid is at the company's sole
discretion. His understanding is that the percentage paid as a franchise fee, and if
they list it on the bill as a franchise fee, is the cable company's choice. It can
come off their profit or as a pass through. If the user fee is lowered by the City,
the cable company mayor may not have to reduce their bill by that amount.
Councilmember Soderberg asked when calculating gross revenues, does that
include franchise fees paid from other jurisdictions as well? Mr. Tom Creighton,
City Cable Franchise Attorney, replied it does not. The gross revenues the fees
are paid on are only received from residents of Farmington.
Mr. Leon Orr, 19161 Echo Lane, stated he does not object to the franchise fee.
His objection is the amount and how the revenues might be spent. Any time the
City mandates a fee from a specific utility, they will pass it on to the customer.
With respect to the staff report, he stated he was first told all revenues from the
fees would be for upgrading the system. The staff report. states the funds are
available for general government. Is that correct? City Administrator Erar, stated
Mr. Orr was told a portion of the fees would remain in the general fund to be used
for maintaining the right-of-way, and a portion placed in the public
communications project fund. Mr. Orr then asked what percentage for the right-
of-way rental does the City collect from the phone, gas, and electric companies?
These would gain revenue from the entire public. Councilmember Strachan then
asked Mr. Creighton about right-of-way use by other utilities. Mr. Creighton
replied there are provisions in state statutes. Many cities do not charge franchise
fees on electric or gas because they are viewed more as utilites and would pose an
undue burden on people. It is much more serious to be without gas or electric
than cable. Telephone is regulated by the public utilities commission. Fees paid
for right-of-way access for phones, go back to the 1800's. The telephone
companies do not pay localities for access to rights-of-way. The City Council has
decided to allocate a large portion of its money for improving communication
with it's residents. The law says all the franchise fees could be dumped into the
general fund. To use the funds for camera equipment, etc. is an admirable thing.
The people who are paying the fees are cable television subscribers, and to spend
the money on cameras benefits the people directly. They get something back for
their fees. As opposed to being critized for that, the Council should be
complimented for it.
Mr. Orr stated he supports user fees for cable. If the Council wants to do
something for the cable subscribers in Farmington, make a statement to officials
who oversee cable that the rates are too high. The Council could use their
position with the three cities to make the complaint known and get competitive
rates. City Administrator Erar stated cities do not have any control over the rates.
It is up to the cable companies. Council has adopted an ordinance that allows for
competition within the community. Mr. Creighton stated the Council has issued
notice of interest in competitive franchising. Everything is being done to
encourage competition. A competitor is coming into Apple Valley, and they are
Council Minutes (Regular)
August 21, 2000
Page 3
trying to get them to expand to Farmington and Rosemount. The rates are not
regulated at the local or state level. If you do not want to pay $43 for cable, then
don't take cable.
Councilmember Soderberg stated Mr. Orr is asking for a resolution by the three
cities stating the rates are too high. Councilmember Strachan asked why the
City's phone number is on the cable bill. Mr. Creighton replied the federal
government decided they would not let the City regulate rates, but they will let
you take the complaints. Councilmember Strachan stated hopefully at some time
we will have competitive rates for bundled services. Will that change the City's
ability to drive this? Mr. Creighton replied it will not. Mr. Orr stated he knows
cities do not regulate fees, but there is a portion of each year where the residents
can. His point is the voice of three cities would be more powerful than his.
Mr. Dick Graelish, 1020 3rd Street, noticed the no parking signs on 3rd Street and Ash did not
work. Two years ago there was a sign stating unauthorized vehicles would be towed and that
worked. Better signs are needed.
7. CONSENT AGENDA
MOTION by Strachan, second by Verch to approve the Consent Agenda as follows:
a) Approved Council Minutes (8/7/00) (Regular)
b) Adopted RESOLUTION R60-00 Accepting Donation Senior Center
c) Adopted RESOLUTION R61-00 Accepting Safe and Sober Grant
d) Adopted RESOLUTION R62-00 Approving Gambling Event Permit
e) Adopted RESOLUTION R63-00 Scheduling 2000 Sealcoat Project Assessment
Hearing
f) Adopted RESOLUTION R64-00 Scheduling County Road 72 Project
Assessment Hearing
g) Received Information School and Conference - Administration Department
h) Received Information School and Conference - Community Development
Department
i) Received Information School and Conference - Police Department
j) Approved bills
APIF, MOTION CARRIED.
8. PUBLIC HEARINGS
9. AWARD OF CONTRACT
10. PETITIONS, REQUESTS AND COMMUNICATIONS
a) Consider Resolution - Tamarack RidgelRock Cliff Development Contract
The Development Contract for Tamarack Ridge/Rock Cliff 1 st Addition, which is
for single family homes, has been drafted in accordance with the approvals and
conditions placed on the approvals of the Preliminary and Final Plat. Following
are conditions for approval of the development contract:
a) The Developer enter into this Agreement
Council Minutes (Regular)
August 21, 2000
Page 4
b) The Developer provide the necessary security in accordance with the
terms of this Agreement
c) Outlot F is dedicated to the City for park purposes
d) The Developer will be responsible for the construction of 209th Street
between Trunk Highway 3 and Cantata A venue in accordance with J;>lans
and specifications approved by the City. The improvements to 209
Street include water main construction. The construction of209th Street
will be completed by December 1, 2001. The Developer will post a surety
for said improvements by April I, 2001. The developer will be
reimbursed by the City for the 209th Street improvement costs apportion to
the residents along the south side of 209th Street.
Signs noting commercial area will be installed by the developer.
MOTION by Verch, second by Cordes adopting RESOLUTION R65-00
approving the execution of the Tamarack Ridge/Rock Cliff 1 st Addition
Development Contract and authorizing its signing contingent upon the above
conditions and the finalization of the Trunk Storm Water Credit calculation.
APIF, MOTION CARRIED.
b) Consider Resolution - Tamarack Ridge/Centex Development Contract
The Centex area will contain multi-family homes and the conditions are the same
as the previous development contract. Council also wanted to ensure commercial
area signage will be installed. MOTION by Soderberg, second by Strachan
adopting RESOLUTION R66-00 approving the execution of the Tamarack
Ridge/Centex 1 st Addition Development Contract and authorizing its signing
contingent upon the above conditions and approval by the Engineering Division.
APIF, MOTION CARRIED.
c) Consider Resolution - Middle Creek Estates (formerly Murphy Farm)
Preliminary Plat
DR Horton and Arcon Development jointly propose to plat 237 lots within the
249-acre site of Murphy Farm located east ofCSAH 31, south of Vermillion
Grove, west of Akin Road and north of Middle Creek and the Farmington
Industrial Park. A total of 143 single-family lots are proposed on the preliminary
plat, 94 of those will be multi-family units. On April 3, 2000 the City Council
authorized the redesignation of MUSA to the 6.5-acre site on the east side of
CSAH 31 from the Riverbend property in the northeast portion of the City.
Therefore, the 6.5 acres contain 56 multi-family units as shown on the preliminary
plat. There is a major north-south road that runs through the Vermillion Grove
development. The major east-west road is 203rd Street that will run through Pine
Knoll, and there will be another east-west road that will run through the southern
portion of the site. There is a gas pipeline easement that runs north-south through
the property. The developer is required to notify the homeowners of the easement
and that no structures are permitted within 50 feet on their side of the easement
plus another 10 feet for drainage and utility easements. Mayor Ristow asked if
Council Minutes (Regular)
August 21, 2000
Page 5
the pipeline will be marked above ground. City Engineer Mann replied the
pipeline company typically marks the pipeline, as far as the spacing he would
have to check with them. He will respond to Council as to what the company
plans on doing.
The Steve Wilson property at 5200 W 203rd Street lies in the north-central portion
of the site and consists of 4 acres. The property is not part of the Middle Creek
Estates Preliminary Plat review and remains R-l. A road will be constructed to
his property. Councilmember Soderberg asked if the roadway will have the same
access to the property as the current road. Staff replied the current road is a
straight access. The proposed road will be curved to the property with curb and
gutter. Councilmember Soderberg asked if Mr. Wilson has had any input on the
location as to where it will access his property? His concern is there is a
development going around a private property owner that will dictate how he will
develop his property in the future and how he will access it.
Mr. Don Patton, D R Horton, stated they are making efforts to buy the property.
Mrs. Wilson did attend the Planning Commission meeting and has been given the
diagrams. The other option is to buy corners of it so the lots can be configured
properly for their plat and yet help the Wilson's also. These are ongoing issues
and not part of the preliminary plat being discussed. Councilmember Verch
stated there is a garage on one corner of the property. So if Mr. Wilson keeps the
property, will the road go through the garage? Mr. Horton stated that will be
decided with the final plat. Councilmember Cordes stated she understands his
garage is on his property and the road will be built to his property. If there is an
existing garage, barn and house, it is his property so nothing will happen to it.
Mr. Patton replied that is correct and sewer and water would be brought to the
property line.
The remaining issue is the Daniel McCarthy property at 5014 W 203rd Street
which will not be platted at this time. Discussions with the McCarthy's are
continuing and a title search is being done. That will be in the 2nd phase of
Middle Creek Estates. Council stated they would like to see this resolved as soon
as possible, so they are not put in a similar situation as East Farmington. City
Administrator Erar stated this is already City property so there is no annexation
required. The garage is sitting on public property. Mayor Ristow stated he wants
to make sure Mr. McCarthy is well aware of this before it gets to that point. Staff
replied the McCarthy's have been aware of this for a year. Mr. Patton stated when
they did the title work on Murphy Farm, the encroachment on this easement is
benefitting the City, it is the City's land. The title work shows the structures on
City property and they are trying to resolve this.
Councilmember Verch stated, with a structure being on City property, can the
City say he has to move his house, or does the City pay a portion to move the
house? Mr. Patton replied it is not part of the property they bought. It is an
easement to the property. City Attorney Jamnik replied the City has an easement
Council Minutes (Regular)
August 21, 2000
Page 6
over that property. The structure located within the easement would constitute
and encroachment. When the City opens the street the City would be within their
legal right to tell the property owner they have to remove the encroaching
structure. At that point the property owner could say they did not have notice
from the title company or the closer did not advise them. The City Council is not
interested in forcing anyone to relocate any portion of their residence, but that is
the difficult choice that would have to be made. The City's ability to realign the
road is somewhat limited.
MOTION by Strachan, second by Cordes adopting RESOLUTION R67-00
approving the Middle Creek Estates Preliminary Plat/PUD contingent upon
engineering requirements. APIF, MOTION CARRIED.
d) Consider Subdivision Variance Request - Vermillion Grove
Rottlund Homes requests a variance from the maximum cul-de-sac length of 500
feet within the Vermillion Grove PUD. The City Council approved the
Vermillion Grove Preliminary Plat on July 17, 2000 contingent upon the approval
of a variance from the maximum cul-de-sac length of 500 feet. Streets D and E
exceed the 500-foot maximum by 98 and 115 feet respectively. The Findings of
Fact were presented to Council. Councilmember Soderberg stated he did not
agree with the Findings of Fact for Street E. He felt it could be reconfigured to
allow a through street. MOTION by Cordes, second by Verch approving the
variance from the 500-foot maximum cul-de-sac length requirement up to 115
feet within Vermillion Grove. Voting for: Ristow, Cordes, Strachan, Verch.
Voting against: Soderberg. MOTION CARRIED.
e) Consider RottlundlDR Horton Request for Public Improvement
A trunk storm sewer outlet is identified in the City's Surface Water Management
Plan that is proposed to connect two designated ponding areas within the
proposed Middle Creek Estates Development. The pond is located on the
Rottlund property and the DR Horton property. The outlet needs to be installed
due to the Rottlund project since their project will be routing surface water to the
wetland, however the outlet is on the southern end of the pond, which is located
on the DR Horton property. The developers have asked the City to coordinate
this project and install the outlet as a public improvement project. MOTION by
Soderberg, second by Verch adopting RESOLUTION R68-00 authorizing staff
to prepare a feasibility report and plans and specifications for the outlet for Pond
F-P7.2. APIF, MOTION CARRIED.
11. UNFINISHED BUSINESS
a) Proposed 2001 Budget - Update
Highlights of the 2001 Budget were presented to Council, which include:
a) A planned reduction in the City's local tax capacity rate from 30.6 percent
in 2000 to 30.0 percent in 2001.
b) The General Fund fund balance reserve will exceed 28% of proposed 2001
budgetary expenditures.
Council Minutes (Regular)
August 21, 2000
Page 7
c) No increases are proposed in City utility rates and/or solid waste rates.
d) A proposed financial transfer from the City's Liquor Store Operations to
the Municipal Ice Arena to build upon past Council direction of using
retained earnings from Liquor Store Operations to help fund community
recreational facilities.
e) The proposed purchase of one new heavy-duty plow truck in the Public
Works Department to facilitate snow removal services and other related
street maintenance activities.
f) The planned purchase of enhanced office technology in the form of a
Digital Document System to facilitate the efficient collection, scanning
and copying of geogrpahic information from existing and new City
development plans.
A Council Budget Workshop will be held August 29,2000.
12. NEW BUSINESS
13. COUNCIL ROUNDTABLE
Council member Soderberg: Noticed the art scupture is in Depot Way Park along with
the two adirondack chairs. He noted the signage on 193rd Street going into Autumn Glen
which stated, Caution - construction vehicles proceed slowly - entering residential streets.
Staff replied those were installed by the developer. Councilmember Soderberg stated it is
a nice addition. He has received one complaint of speeding construction traffic on
Embers Avenue.
Community Development
Director Olson: There will be a joint Council/Planning Commission
Workshop on August 30, 2000.
Mayor Ristow: He participated in the Ramble and Amble, a fund raiser for
the American Cancer Society.
14. ADJOURN
MOTION by Cordes, second by Strachan to adjourn at 8:50 p.m. APIF, MOTION
CARRIED.
Respectfully submitted,
~~ ;??-7~~
Cynthia Muller
Executive Assistant