HomeMy WebLinkAbout6.b. Minutes of the October 14, 2009 Special City Council Meeting Proceedings ROSEMOUNT CITY COUNCIL
SPECIAL MEETING PROCEDURES
OCTOBER 14, 2009
CALL TO ORDER
Pursuant to due call and notice thereof a special meeting of the Rosemount City Council was held
on Wednesday, October 14, 2009 at 6:30 p.m. in the Conference Room at City Hall, 2875 145
Street West.
Mayor Droste called the meeting to order with Council Members DeBettignies, Shoe Corrigan and
Weisensel attending. Council Member Bills was absent. Staff members present included City
Administrator Johnson, Assistant City Administrator Foster, Director of Public Works /City
Engineer Brotzler, City Clerk Domeier, Community Development Director Lindquist, Finance
Director May and City Attorney Vose.
ADDITIONS OR CORRECTIONS TO AGENDA
Mayor Droste stated that the Action Items will be discussed before the Discussion items.
ACTION ITEM
C1. Presentation by FTTH Communications, LLC
Representatives from FTTH, Telecom Communications and EveresTV were in attendance for the
item. City Administrator Johnson summarized the information provided within the staff report.
Rick Engel, CEO of Rudder Capital, stated he was tasked to evaluate the three different companies
owned by Rudder. Mr. Engel was aware of progress with FTTH and started looking for a viable
buyer in July of this year. His goal was to make certain that a buyer had the financial wherewithal to
complete the deal and a company with industry knowledge to continue the relationship with their
customers. Mr. Engel stated that Rudder has every intention to serve the citizens if they cannot
reach a deal with the City. Mr. Engel will do whatever it takes to bring in a viable buyer for the
franchise and looking for a smooth transaction.
Jeffrey Feldman, of EveresTV, communicated his interest in the business. Mr. Feldman provided
background on his experience and EveresTV including its financial status. Everest would own 80%
of FTTH and 20% would be owned by investors. The franchise agreement will be a key asset and
needs to be moved to EveresTV in good standing. Mr. Feldman did not want to move forward if he
felt the customer base would be lost. Moving forward will be subject to the City Council's decision
to extend the revocation period and consideration to transfer the franchise. His goal was to map out
the revocation issues and get the framework started to get the franchise transferred. EveresTV was
looking to conditionally close around Thanksgiving.
Clyde Ahlquist stated that Rudder respectfully requests at least a six month extension to move
forward with the purchase agreement. He spoke of the City's right of first refusal and that the buyer
would request a transfer of the franchise or a new franchise agreement. The intention is that during
the six months the seller and potential buyer can move forward with the process.
City Council Member Shoe Corrigan asked about the possible closing date. Mr. Feldman
anticipated a closing date around Thanksgiving or early December. Mr. Ahlquist commented that
the closing cannot take place without approvals from the City and the Public Utilities Commission.
He figured the closing date may be closer to December 31 depending upon the length of the PUC
review. Mr. Johnson stated that the City controls it own timeline of 120 days but that the PUC is
allowed up to 90 days for review. Mr. Ahlquist stated that he would check the PUC docket on
Thursday but noted that the PUC will not start a review without a signed purchase agreement.
ROSEMOUNT CITY COUNCIL
SPECIAL MEETING PROCEDURES
OCTOBER 14, 2009
Council Member DeBettignies had no issues with granting an extension and thanked EveresTV for
meeting with the City.
Council Member Weisensel questioned the build out schedule. Mr. Vose stated that staff and
EveresTV did spend time earlier in the day talking about the build out schedule. He thought that
for the purposes of tonight's meeting it was too much to expect the City Council to determine an
appropriate build out schedule.
Mr. Vose stated that the important issues discussed today included the transfer of a cable franchise
or granting a new franchise. In either a transfer or new franchise a city typically looks at the overall
corporate assets. He anticipated that the City Council would want to see the ability to make capital
investments in the community in a short time frame. He added that the buyer understandably wants
to make a commitment to secure funds for the build out. Staff will push for information on how
this will be financially accomplished. Mr. Vose also stated that another complication is the state
statute mandates a build out schedule that postdates the existing franchise. In his opinion, the City
will need to apply that legal requirement to the new build out and discussion of the phasing will need
to be addressed.
Council Member Shoe Corrigan stated that Mr. Feldman had the key background and education.
She questioned when the investment will occur, how Mr. Feldman will make it occur, his
commitment and if it could be done in a reasonable amount of time. Mr. Feldman provided more
information on his access to the capital needed to make the investments. Council Member Shoe
Corrigan questioned if the six month extension was sufficient. Mr. Vose stated that based upon
discussion earlier in the day it was decided not to push out the extension date any further. The
extension needed to be more than just 30 days to complete the entire process with the City and
PUC. Based upon that balance they decided on a six month extension. Mr. Feldman noted that
EveresTV was frozen until the franchise agreement issues were resolved. He added that the longer
the time limit the longer he has to wait to invest.
Council Member Weisensel preferred a six month timeframe for the citizen's benefit. He didn't
want customers to be worried about having to jump services. He added that he didn't want to be in
this situation again in the next two to three years and that he expected the buyer to live up to the
agreements.
Council Member Shoe Corrigan stated that current customers are happy with their current service.
She wanted those opportunities for the rest of the residents in Rosemount. More households in the
City would like access to the choices and opportunities. She said if you can provide us the necessary
documentation in the next six months I am willing to move forward.
Mr. Johnson suggested the six month extension date of April 21, 2009.
C2. Extension of the Revocation Date of the Cable Franchise issued to FTTH
Communications, LLC
Motion by Shoe Corrigan. Second by DeBettignies.
ROSEMOUNT CITY COUNCIL
SPECIAL MEETING PROCEDURES
OCTOBER 14, 2009
Motion to Approve a Resolution Extending the Date of Franchise Revocation for FTTH
Communications, LLC to April 21, 2010.
Council Member Weisensel questioned if any other interim dates should be included within the
motion. Council Member Shoe Corrigan responded that a timetable seemed appropriate. Mr. Vose
did not favor formalizing the timeline because it was not determined if the franchise would be
revoked, transferred or new. He added that the vote would not change the fact that a revocation
date is out there and under City Council control. By voting yes, it would make the buyer work
seriously and diligently to make the deal happen but no matter what the City Council holds the
cards.
Ayes: Weisensel, Shoe Corrigan, DeBettignies, Droste.
Nays: None. Absent: Bills. Motion carried. (Resolution 2009 -57)
DISCUSSION
3.A. Request by Laxman Sundae Regarding Drainage Issues at 2055 128 Street
Director of Public Works /City Engineer Brotzler stated that staff met with Laxman Sundae prior to
the October 6 City Council meeting regarding the drainage issues. He stated that staff was not
aware that any of the neighbors altered their properties to affect the drainage on Mr. Sundae's
property in a negative way. Discussion was held regarding Mr. Sundae's septic system. Mayor
Droste provided background on the properties in the area and the other drainage issues.
Community Development Director Lindquist stated that Mr. Sundae believes that the neighbors
should have defined swales to ensure that water drains correctly from his home. She added that
staff explained to Mr. Sundae that staff only works with public improvements within the dedicated
public drainage and utility easements. The issue is a civil matter between the neighbors. Brief
discussion was held about bringing water and sewer to the area.
3.B. Liquor Regulations Ordinance Amendments
City Clerk Domeier summarized the information provided within the staff report. The City Council
favored moving forward with the proposed amendments. The ordinance will be provided at the
November 3, 2009 City Council meeting for consideration.
UPDATES
4.A. Youth Commission
Assistant City Administrator Foster summarized the information provided within the staff report.
Mayor Droste suggested that the City Council pass on goals to the commission each year. Council
Member DeBettignies suggested that another partnership opportunity for the commission could be
the local seniors group.
Mayor Droste and Council Member Shoe Corrigan wanted to be the City Council co- liaisons to the
commission. A brief discussion was held regarding the structure of the commission. Ms. Foster will
provide a draft resolution establishing the commission for consideration at the October 20, 2009
City Council meeting.
ROSEMOUNT CITY COUNCIL
SPECIAL MEETING PROCEDURES
OCTOBER 14, 2009
4.B. Final budget preparation for 2010
City Administrator Johnson summarized the information provided within the staff report. He
questioned if the City Council wanted to discuss the budget again in November. Mayor Droste
commented on the tax reduction and tax rate comparisons in Dakota County. He suggested
revisiting the budget again in November. Council Member Shoe Corrigan stated that during the
future years' goal setting sessions the City Council should discuss the delivery of services. She also
stated she had nothing to add to the current budget but wanted to discuss policy changes. The next
budget discussion will be held at a special work session following the November 3, 2009 regular City
Council meeting.
4.C. Update on Collective Bargaining
City Administrator Johnson provided the status on the collective bargaining for the four City groups
that have contracts expiring. Staff has met with the Teamsters bargaining group. Discussion was
held on longevity, wages, City snow removal, contractual snow removal, over -time, comp time and
tracking department expenses. Further discussion will be held about negotiation strategies.
4.D. Updates by City Council /Staff
Director of Public Works /City Engineer Brotzler provided an update on Shannon Parkway
feasibility work and trails. Staff was requesting feedback from the re- striping of Shannon Parkway.
Council Member Shoe Corrigan stated she heard positive feedback changing the road from four
lanes to two lanes with a turn lane. Discussion was held regarding future striping, roundabouts,
funding and pedestrian crossings.
ADJOURNMENT
There being no further business to come before the City Council and upon a motion by Droste,
second by DeBettignies, the meeting was adjourned at 9:00 p.m.
Respectfully submitted,
Amy Domeier, City Clerk