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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