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HomeMy WebLinkAbout04.07.86 Council Minutes 171 MINUTES COUNCIL MINUTES REGULAR APRIL 7, 1986 1. Mayor Akin called the meeting to order at 7:00 P.M. Present: Akin, Kelly, Mayer, Orr, Sprute. Absent: None. Also Present: Administrator Thompson, Attorney Grannis. 2. Motion by Akin, second by Orr that the meeting be moved to the Dakota Electric building at 7:30 P.M. 3. Motion by Orr, second by Kelly to approve the agenda with the following changes: 1. Delete Item ge, police computer purchase from the agenda. APIF, motion carried. 4. It was the consensus of the Council to approve the minutes of the meetings of March 17, 1986 - regular; March 19, 1986 - special; March 24, 1986 - special. Pat Murphy requested that the Council consider publishing the minutes. It was the consensus of the Council to place the matter on a future agenda for discussion. 5. Motion by Akin, second by Mayer to grant permission to the Fire Department to burn the structure at 809 Second Street, subject to receiving written per- mission from the owner and neighboring property owners. APIF, motion carried. The Council directed the Fire Chief to draft a policy relating to burning practice. 6. City Engineer Tom Kaldunski informed the Council that Lot 8, Block 6, Pine Knoll was presently being forfeited for taxes and recommended that the City acquire the property for a drainage easement. Motion by Mayer, second by Orr to adopt Resolution No. R22-86 authorizing the acquisition of Lot 8, Block 6, Pine Knoll through tax forfeiture, for drainage easement purposes. APIF, motion carried. 7. Park and Recreation Director Jim Bell submitted the 1987 LAWCON/LCMR appli- cation for Council consideration. Mr. Bell indicated that the application would be similar to the 1986 application for a trail system connecting Rambling River Park with Dakota County Estates. Motion by Orr, second by Kelly to adopt Resolution No. R23-86 submitting a 1987 LAWCON/LCMR Grant application. APIF, motion carried. 8. Motion by Sprute, second by Kelly to approve the consent agenda as follows: a. Approve a request to attend school by the Fire Department. b. Approve a 50% tuition refund for the Liquor Store. c. Approve payment of the bills as submitted. APIF,motion carried. 9. Mayor Akin opened a public hearing at 7:15 P.M. to consider the On-Sale Liquor License and On-Sale Special Sunday License applications by Desert Enter- prises, Kenny LaBeau and Valerie Groh dba The Long Branch Saloon and Eaterie, 309 Third Street. Police Chief Whittingham informed the Council that a back- ground investigation had been completed. Mayor Akin closed the public hearing. 172 10. Motion by Kelly, second by Orr to approve the On-Sale Liquor License and On-Sale Special Sunday License applications by Desert Enterprises, Kenny LaBeau and Valerie Groh dba The Long Branch Saloon and Eaterie, 309 Third Street and to pro rate the fee from April 1, 1986. APIF, motion carried. 11. The Council adjourned at 7:30 P.M. and reconvened at Dakota Electric Association building at 7:40 P.M. 12. Mayor Akin reopened the public hearing to consider the request by AVID, Inc to locate a beef processing facility in Farmington. Mayor Akin gave a summary of the proposal and opened the hearing to general comments. Ted Schoonover: The Council and audience should be aware that no formal appli- cation was submitted. Also, after a motion was made and seconded to approve the special exception and two votes had been cast, a City official made certain comments, then the vote was passed. Mr. Schoonover and other members of the audience presented a petition to the Council opposing the project. Motion by Sprute, second by Mayer to accept the petition. APIF, motion carried. Jeff Oliver: Were the tax returns, financial statements and financial records of the stockholders been examined? Mayor Akin: Most of that information was not provided by the developer. Administrator Thompson: The City has received various financial projections provided by the developer, but they were unaudited and were based on several assumptions. Sheila Lund: Shouldn't the financial records be completely reviewed up front? Mayor Akin: Approval would be contingent upon review of complete financial records. Sheila Lund: Has the developer been through bankruptcy? Mayor Akin: Not that I am aware. Bob Sender: It is my understanding that the meat packing industry is not very stable. What would happen if the company went bankrupt? Mayor Akin: A Letter of Credit would cover the City's investment. We would have an empty building though. Bob Sender: What are the chances of the business succeeding. Ray Whitmore: We feel we can be very competitive with our technology. Erwin Hagen: I don't think that the distribution of flyers opposing the project in a church parking lot is proper. Jack Gergen: I was responsible for the flyers. I did not know that they would be distributed at the churches. I work for a company that is very pollution conscious and they still can't eliminate all odors. Mayor Akin: They would have to comply with all EPA and PCA requirements. Jan Sender: What will the project contribute to local taxes? Administrator Thompson: Approximately $225,000 after fiscal disparities. Gilbert Pierce: I don't think financing is the main concern, it's the po- tential pollution or odor problem with this plant. 173 Ray Whitmore: There will be no pollution or odor problem with this plant. Mary Alice Wachter: Is there going to be a forgiveness of property taxes? Administrator Thompson: The City does not have the authority to forgive property taxes. The City is considering using tax increment financing to help finance the project. (Mr. Thompson gave a brief explanation of tax increment financing.) 13. Mayor Akin opened a public hearing at 8:00 P.M. to consider the proposed improvements to Dakota County Estates Second and Third. The hearing was continued until later in the meeting. 14. Mike Higgins: How do you deal with the ice that will form in the pens during winter? Ray Whitmore: The pens will be cleaned daily with 1800 water. Harold Blasik: What routes will the trucks use? Mayor Akin: Bob Sender: Mayor Akin: Jack Gergen: Mayor Akin: Jack Gergen: Mayor Akin: They will use the State and County highway systems. Why don't you locate the plant southeast of town? That is township and we don't have control over it. How will the waste be treated? Ultimately by the MWCC. I feel our property values will drop. You may be right. Helen Trickey: I came to Farmington for the quality of life. What is going to happen with police problems and traffic? Howard Kehlenbeck: Have you proposed the project anywhere else within 10 miles? Ray Whitmore: No. Dale Neilen: I understand you met with Governor Perpich to ask for a tax exemption. Ray Whitmore: I did ask for an exemption from sales tax on the equipment. Ruth Simon: How many gallons of water will be used? How will it affect the present treatment plant? Mayor Akin: They plan to use a private system. Lee Blake: We've already been notified of a sprinkling ban. Mayor Akin: The plant will not hook into the City system. Jerry Benoit: Will the plant be union or non union? Ray Whitmore: If employees wish to organize it is their perogative. Frank Formisano: Did the Council members receive the letter I wrote regarding the wastewater and odor treatment systems? Mayor Akin: I read the letter and passed it on to the Planner with a note to distribute it to the Planning Commission. Frank Formisano: How easy is it to collect on a letter of credit? Attorney Grannis: If drafted properly, it is relatively easy. The institution issuing the letter of credit has to be solvent however. 174 Henry Iwerks: The Council should be commended for the way they have kept the process open. My major concerns are the chances of the plant succeeding, odors, lack of track record by AVID, Inc, and the com- petitiveness of the meat packing industry. Gilbert Pierce: I feel the government has gone awry when 5 people on the Planning Commission can decide the fate of the entire community. Mayor Akin: It is the Council's responsibility to make these decisions. Mayor Akin closed the public hearing. 15. Councilman Mayer indicated that the system had not gone awry, exemplified by the openness of the City in this matter. Councilman Mayer asked why the land needs of AVID had gone from 35 acres to 80 acres to 160 acres. Mr. Whitmore explained that they only require 80 acres but had proposed 160 acres because that was the smallest amount of land the Petersens' would sell. Council- man Mayer indicated that he was opposed to any on site treatment plant because it could attract industries wishing to treat toxic waste. Councilman Mayer asked if he could explain the odor scrubbing system. Mr. Whitmore indicated that the questions were addressed during the March 19, 1986 public hearing and that he was not an expert. Councilman Mayer asked what AVID's financial commitment to the project would be. Mr. Whitmore indicated that he was able to identify $3,000,000 in private investments. 16. Councilmember Kelly asked if the project would affect private wells. Consulting Engineer Glenn Cook indicated that it probably would not. 17. Councilmember Sprute noted that the developer was requesting 80 acres, when the site plan indicated only 35 were necessary. Mr. Whitmore indicated that the additional space was necessary for expansion of a sheep and hog slaughtering operation. Councilmember Sprute asked where the waste for the sheep and hog operation would go. Mr. Whitmore indicated that it would be treated and disposed of the same as the beef plant. Councilmember Sprute asked where the letter of credit would be drawn. Mr. Whitmore indicated that he had not identified the bank. Mr. Sprute indicated that he had not received the letter from Frank Formisano. Mr. Sprute also stated that there were approxi- mately 430 signatures on the petition. Mr. Sprute added that the project did not comply with the provisions of Title 7-5-2 of the City Code relating to offensive business. 18. Councilmember Orr indicated to the audience that it was the developer who had proposed the project, not the Council, and that the Council had invited the public to participate in the decision making process. Councilmember Orr stated that his major concerns were livestock being transported through the City, the compatibility of future businesses with the plant and the lack of a track record by the developer. 19. Motion by Akin, second by Orr that, based on all of the information pre- sented, including environmental, financial and administrative, by AVID, Inc. in support of their proposal for Council review; and because of public parti- cipation and input at the hearing; that the request to locate a meat packing facility in industrially zoned land in the City of Farmington, using City financial incentives, be denied. 115 20. Motion by Sprute, second by Mayer to amend the abovementioned motion by adding that the request also be denied under the provisoins of Title 7-5-2 of the City Code relating to health nuisances - offensive business. Council- member Sprute indicated that he was proposing the amendment because the original motion would not close the door for locating a meat packing plant without City incentives. Councilmember Orr indicated that he was opposed to the amendment because the Council should just deal with the financing at this time. Voting on the amendment: For - Sprute, Mayer. Against - Akin, Kelly, Orr. Amendment failed. Voting on the original motion: For- Akin, Kelly, Mayer, Orr, Sprute. Motion carried. 21. Mayor Akin reopened the public hearing to consider the proposed public improvements to Dakota County Estates Second and Third Addition. Consulting Engineer Glenn Cook gave a brief overview of the projects as described in the feasibility report. Administrator Thompson explained that the project had been 100% petitioned by the developer, but the developer now wishes to assess the benefitted unplatted property adjacent to Dakota County Estates Third. Admini- strator Thompson explained that this could be accomplished by an assessment agreement whereby the owners of the unplatted properties agree to waive their right to a hearing and to appeal. Administrator Thompson also stated that the Council should base the ordering of the project contingent upon execution of the developer's agreement and assessment agreement outlined in the memo dated April 4, 1986. Mr. Thompson stated that the surety and storm sewer trunk fee were still undecided. Jack Benedict (developer) indicated that he would accept the storm water trunk charges if he were assured that the plat would not be assessed a second time for the charges. It was the consensus of the Council that no surety guaranteeing future assessment payments would be required because of past performance of the developer and that the storm sewer trunk fee would be included. Mayor Akin indicated that sealcoating should be included in the project. Robert Stegmaier indicated that the assessement agreement as pro- posed would allow the unplatted property to remain in green acres. There was no disagreement by the Council. Mayor Akin closed the hearing. 22. Motion by Akin, second by Sprute to adopt Resolution No. R24-86 approving the development agreement and assessment agreement and ordering the proposed public improvements to a portion of Dakota County Estates Second, Dakota County Estates Third and adjacent unplatted property, contingent upon receiving the abovementioned, executed development agreements and assessment agreements prior to the closing of business hours on April 11, 1986. APIF, motion carried. 23. The Council next considered a proposed ordinance to establish a Senior Center Advisory Committee. Discussion followed regarding the membership of the Committee. It was the consensus of the Council that councilmembers sub- mit their input to the Administrator and that the Mayor, Administrator and Park and Recreation Director meet to discuss the recommendation and report back to the Council. 24. Motion by Akin, second by Kelly to adopt Resolution No. R25-86 setting forth policy relating to employee use of City vehicles for commuting. APIF, motion carried. 25. Motion by Akin, second by Kelly to adopt Resolution No. R26-86 prohibiting the personal use of City vehicles. APIF, motion carried. 26. Motion by Sprute, second by Kelly adopting Resolution No. R27-86 supporting local outdoor recreation funding from the State and Federal Government. APIF, motion carried. 176 27. The Council next considered staff recommendation relating to the MWCC payback plan. Finance Director Wayne Henneke stated that the recommendation was based on a meeting between City staff, Mayor Akin, Met Council Represen- tative Pat Scully and MWCC Representative Bruce Bauman. The plan called for a 7 year payback with no interest. Questions were raised regarding Henneke's projections. It was the consensus of the Council that staff proceed with the payback plan as presented. 28. The Council next considered staff recommendation regarding a sanitary sewer fee surcharge of $100 for homes discharging subsurface water. Questions were raised regarding the excessiveness of the surcharge. City Engineer Torn Kaldunski indicated that certain sections of the City had been identified as problem areas and the surcharge would work as a deterrent. Administrator Thompson indicated that homes would be allowed to remain hooked into the system with a sealed valve as a backup system. Motion by Mayer, second by Kelly to allow Robert Morrison to connect his sump pump to the sanitary sewer system with a sealed valve as a prototype and to defer action on the policy. APIF, motion carried. 29. The Council next considered various correspondence relating to the ALF Ambulance Joint Powers Agreement. Mr. Thompson stated that the proposed amendment would incorporate the insurance requirements which were already adopted by the Council and other housekeeping language. The Council also con- sidered a memo from the Lakeville City Attorney relating to the City's liability exposure. Motion by Akin, second by Orr to adopt Resolution No. R28-86 amending the Ambulance Joint Powers Agreement. APIF, motion carried. 30. Motion by Sprute, second by Kelly to adopt Resolution No. R29-86 accepting the Senior Center donation from the Eagles Club. APIF, motion carried. 31. Consulting Engineer Glenn Cook presented a feasibility report for improve- ments to Terra Second Addition. Motion by Akin, second by Sprute to adopt Resolution No. R30-86 accepting the Feasibility Report for Terra Second Addition. APIF, motion carried. 32. Motion by Sprute, second by Kelly to approve a capital outlay request for replacement of the swimming pool deck. APIF, motion carried. 33. Motion by Mayer, second by Sprute to direct the Planning Commission to initiate the invalidation of the Special Exception Permit for a meat packing plant on the Petersen farm. Discussion followed regarding the appropriateness of directing the Planning Commission to take any action. Councilmember Mayer withdrew his motion and Councilmember Sprute withdrew his second to the motion. The Council directed the Administrator to request that the Planning Commission consider invalidating the aforementioned special exception. 34. Motion by Mayer, second by Kelly to adjourn at 10:35 P.M. APIF, motion carried. Respectfully submitted, Approved zj / J.l ( '6~