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HomeMy WebLinkAbout10.04.10 Council Packet City of Farmington 430 Third Street Farmington, MN 55024 Mission Statement Through teamwork and cooperation, the City of Farmington provides quality services that preserve our proud past and foster a promisingfuture. FARMINGTON CITY COUNCIL Todd Larson, Mayor Terry Donnelly Julie May Christy Fogarty Steve Wilson AGENDA REGULAR CITY COUNCIL MEETING October 4,2010 7:00 P.M. CITY COUNCIL CHAMBERS 1. CALL TO ORDER 7:00 P.M. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVEAGENDA 5. ANNOUNCEMENTS/COMMENDATIONS 6. CITIZEN COMMENTS / RESPONSES TO COMMENTS (This time is reservedfor citizen comments regarding non-agenda items. No official Council action can be taken on these items. Speakers are limited to flVe minutes to address the Council during "Citizen Comment" time.) a) Mary Scheide, Dakota County Library, Farmington 7. CONSENT AGENDA a) Approve Council Minutes (9/20/10 Regular) (9/27/10 Workshop) b) Adopt Resolution - Accept Donation Pollution Prevention Day - Municipal Services c) Adopt Resolution - Approve Gambling Event Permit Fire Department - Administration d) Adopt Resolution - Appoint 20 I 0 General Election Judges - Administration e) Declare Default Swanson Acres - Engineering f) Approve Tobacco License Super America - Administration g) Adopt Resolution - Accept Donation Rambling River Center - Parks & Recreation h) Approve Temporary Liquor License Knights of Columbus - Administration i) Approve Bills REGULAR AGENDA (The Council takes a separate action on each item on the Regular Agenda. Jfyou wish to address the Council regarding any or all of the items on the Regular Agenda, please address the item when the item is discussed Speakers will be given at least three minutes to speak per item. Additional time may be granted to speakers representing two or more persons.) Action Taken Information Received Approved R54-10 R55-10 R56-10 Approved Approved R57 -10 Approved Approved 8. PUBLIC HEARINGS a) Approve On-Sale Wine License Ugly Mug - Administration b) Seal Coat Assessment Hearing - Engineering 9. AWARDOFCONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS 12. NEW BUSINESS a) Authorize Elimination of Positions for 2011 - Administration 11. UNFINISHED BUSINESS a) Approve Listing Agreement 431 Third Street - Administration (Supplemental) 13. COUNCIL ROUNDTABLE 14. ADJOURN Persons with a disability may request a reasonable accommodation by contacting the City Administrator's office at 651-280-6803. Request should be made 24 hours in advance or as early as possible to allow time to arrange accommodation. Table of Contents Agenda. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Approve Council Minutes (9/20/10 Regular) (9/27/10 Workshop) Regular Minutes 9/20/10 . . . . . . . . . . . . . . . . 4 Workshop Minutes 9/27/10 . . . . . . . . . . . . . . .21 Adopt Resolution - Accept Donation Pollution Prevention Day Memo . . . . . . . . . . . . . . . . 29 Resolution. . . . . . . . . . . . . . . . . .30 Adopt Resolution Gambling Event Permit Gambling Event Permit - Fire Department . 31 Resolution Gambling Event FD. . . . . . . 32 Adopt Resolution - Appoint 2010 State General Election Judges Appoint 2010 General Election Judges . . 33 Resolution Appointing Election judges . . . . 34 Declare Default-Swanson Acres Developer Default-Swanson Acres 100410. . 36 Approve Tobacco License - Super America Approve Tobacco License - SA. . . . . . . .38 Adopt Resolution Accept Donation to the Rambling River Center memo . . . . . . . . . . . . . . . . . . . . . . . . . 39 resolution . . . . . . . . . . . . . . . . . . . . . . . 40 Approve Temporary Liquor License - Knights of Columbus Approve Temporary Liquor License. .41 Application - K of C . . 42 Approve Bills List of Bills. . . . . . . 43 Approve On-Sale Wine License - Ugly Mug On Sale Wine License - Ugly Mug. . . 65 2010 Seal Coat Assessment Hearing 2010 Sealcoat Assessment Hearing 092710 . . 66 2010 seal coat resolution . . . . . . 68 Authorize Elimination of Positions for 2011 Memo . . . . . 73 Descriptions. . . . . . . . . . . . . 75 1 7a.. COUNCIL MINUTES REGULAR September 20, 2010 1. CALL TO ORDER The meeting was called to order by Mayor Larson at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE Mayor Larson led the audience and Council in the Pledge of Allegiance. 3. ROLL CALL Members Present: Members Absent: Also Present: Audience: Larson, Donnelly, Fogarty, May, Wilson None Joel Jamnik, City Attorney; Peter Herlofsky, City Administrator; Teresa Walters, Finance Director; Randy Distad, Parks and Recreation Director; Kevin Schorzman, City Engineer; Todd Reiten, Municipal Services Director; Brenda Wendlandt, Human Resources Director; Cynthia Muller, Executive Assistant Ian Menoch, David Pritzlaff, Lenny Hall, Larry White, Dick Ornberg 4. APPROVE AGENDA Councilmember Wilson pulled items 7g) Adopt Ordinance Amending Downtown Commercial Overlay District Design Standards for Screening and Fencing, and 7i) August 2010 Financial Report. Councilmember May pulled item 7d) Approve Game Ice Rental Agreement. MOTION by Fogarty, second by Wilson to approve the Agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS a) Recognize Retirement - Bill Weierke Council and Municipal Services Director Reiten recognized the retirement of Bill Weierke as Streets Supervisor after 26 years of service. He will retire effective September 30,2010. 6. CITIZEN COMMENTS Mr. David Pritzlaft: 20255 Akin Road, thanked Bill Weierke for his service to the City. Mr. Pritzlaffnoted at the last meeting, Council approved the preliminary levy. Included in the list of reductions were two staff positions. Now that the preliminary levy is approved, he asked what the positions are. Staff will respond. Mr. Pritzlaff stated at the last meeting, he gave his opinion. He stated his opinions were demeaned by a Councilmember and the City Administrator. What he said about reducing fat in the budget should have been left alone as it was his opinion. In the future, he would like to have his opinion left alone, unless it is something different; there is no right or wrong. 4 Council Minutes (Regular) September 20,2010 Page 2 Mr. Dick Omberg, 617 Spruce Street, asked if the City has changed the policy on boulevard trees. His tree died, the City ground out the roots, and he was told the City would not replace trees. Today one block away, trees are planted all over in the boulevard. He asked if that meant he would get a tree now. He was aware there is an ordinance against parking on property without a hard surface. As he drives around town, he sees cars parked on easements, without concrete, and cars not moved for 3-4 years. Mayor Larson asked staff to provide Mr. Omberg with the boulevard tree ordinance and the minutes from the Walnut Street project regarding the trees. Trees that were removed by the City are being replaced, not trees that died. Mr. Omberg asked whose responsibility it will be when those trees die. He thought the City was not going to replace boulevard trees. Councilmember Fogarty asked Mr. Omberg to send an e-mail or call the Police Department regarding the specific properties. Mr. Omberg stated he has come to City Hall and told staff, but it does not work. He suggested Council drive around town. Councilmember Fogarty stated code enforcement is done on a complaint basis and she has never received any information. Council does not have the ability to follow-up without the information, but coming to City Hall should work. 7. CONSENT AGENDA MOTION by Wilson, second by Fogarty to approve the Consent Agenda as follows: a) Approved Council Minutes (9/7110 Regular) b) Approved School and Conference - Engineering c) Approved School and Conference - Finance e) Received Information Hydrant Flushing - Municipal Services :t) Adopted RESOLUTION R52-10 Accepting Donation Rambling River Center- Parks & Recreation h) Adopted ORDINANCE 010-628 Amending Erosion Control and Turf Establishment Regarding Installation of Sod on New Construction - Planning j) Approved Beer License Ugly Mug - Administration k) Approved Bills APIF, MOTION CARRIED. d) Approve Game Ice Rental Agreement - Administration City Administrator Herlofsky explained staff has worked with the School District to come to an agreement for payment of ice time for high school girls and boys hockey games. The school will pay $325/hour/high school event. This is for a four-hour event which amounts to $1300. Previous agreements had issues with the gate receipts which varied the revenue stream. Councilmember May recalled the old agreement had a difference between girls and boys games, but this agreement is the same for both. She asked how the hours are determined. Parks and Recreation Director Distad stated there is a block of four hours for the junior varsity and varsity games; a block for boys games and a block for girls games. The amount does include clean-up costs. Councilmember May noted the agreement also states the City shall provide and pay for admission personnel, concession personnel, one scoreboard operator, and one announcer. She asked if the concession is handled by the hockey association. Councilmember Fogarty stated there is one person at the table taking money and 5 Council Minutes (Regular) September 20,2010 Page 3 tickets. Another person is in the office area to sharpen skates and sell miscellaneous skating items. That is considered the concession personnel. Councilmember May stated without any information on the ticket proceeds, does staff feel the $325 covers our costs as we have a large debt to pay as well. City Administrator Herlofsky stated this is not to cover the debt; it covers operations. Staff met with the school district to determine a fixed cost for each event for the City and the school. There will be no issues with dividing the money. Staff stated the average gate receipts are $22,000/year gross. As part of the gate receipts we had to deduct the cost of the high school rental for four hours and the remaining amount was split 60/40 with the school. The amount the City received was not enough to cover our costs. City Administrator Herlofsky explained staff worked out this agreement to make sure all the costs generated at the event are covered. This agreement is fair to the City and the School District. Councilmember Fogarty asked who determines what groups can get into the games for free, such as the band so they can play. It is the School District who determines who can get in for free for performances. MOTION by Donnelly, second by Fogarty to approve the Farmington High School Game Ice Rental Agreement. APIF, MOTION CARRIED. g) Adopt Ordinance - Amending Downtown Commercial Overlay District Design Standards for Screening and Fencing - Planning Councilmember Wilson noted this issue was discussed previously and then it dropped off. He asked ifthere was a concern as he did not see anything different from what was discussed previously. City Engineer Schorzman stated there was not a specific event to bring it forward now, it has been in process. There has been some potential redevelopment in downtown lots so this should be in place. Any potential development will be made aware of the ordinances. Councilmember May asked ifthere was discussion with the Downtown Business Association in the creation of the document. Mayor Larson stated they were part of the process years ago when this started. Councilmember Wilson suggested bringing this to the DBA for comment and then bring it back to Council. City Engineer Schorzman stated the Planning Commission did hold a public hearing and it was noticed. Ifthere were any concerns from the DBA, they could have been brought forward at that time. This was approved by the Planning Commission. Councilmember Donnelly noted it is not a completely new ordinance, it is only changing the fencing requirements. Staff confIrmed the DBA was notified ofthe public hearing. MOTION by Wilson, second by Donnelly to approve ORDINANCE 010-627 amending section 10-6-28 ofthe Zoning Code concerning the Downtown Commercial Overlay District Design Standards. APIF, MOTION CARRIED. i) August 2010 Financial Report - Finance Councilmember May stated many of her comments will be related to the budget discussion. 6 Council Minutes (Regular) September 20, 2010 Page 4 Permits - We are above the current budget number, but Councilmember May recommended keeping that number the same for 2011. Ifwe exceed the number next year, the general fund could use some shoring up. Anytime we are over on revenue, it is a bonus. Fines - Even the 2011 budget number of $70,000, which is $30,000 less than the 2010 number, is still overstated. She would like the Police Department to look at the number again. Currently we are at $40,000. She felt the number was way out of line. Charges for Services - Councilmember May asked about the status of the contract for Fire Services. She would not be able to vote on a specific number for revenues unless she saw the contract. City Administrator Herlofsky recently received some information from Castle Rock and a draft contract will be available at the next meeting. There has been a fIXed amount set in the contract for Castle Rock, and Empire and Eureka may continue with the current amount. Councilmember May asked for a general idea for the workshop. City Administrator Herlofsky explained they averaged the last three years of activity and added 3% for 2011,3% more for 2012, 3% more for 2013. Councilmember May asked why the Police charges number is going down for 2011. The detail is for ISD liaison so ifwe increased an SRO, why would it go down. Staffwill research this item. Investment Interest - Councilmember May noted this is a very sad number. She felt our projected 2011 budget number is too high. We have a budget number of $250,000. There was an adjustment in June of a negative $45,000. She wanted to know what staff anticipates the monthly income to be. Looking at the average of where we are, the number should be closer to $180,000. Special Revenue Funds - Councilmember May noted the Arena and Recreation funds have deficit balances. She asked where we anticipate borrowing the funds from. Parks and Recreation Director Distad stated as far as the Rambling River Center renovations, there is a 5-year time period to pay that back. Regarding the Arena, staff is trying to generate more revenue to cover the costs and try to add some revenue to pay down the deficit. Councilmember May asked about the deficit for 2010. Staff explained we raised the Ice Arena rental rates starting last year. Hopefully, this will mean increased revenues. To make up $178,985 this year is not feasible. Councilmember May stated it is more a year end question and how are we going to balance the funds. Finance Director Walters will come back with a plan as far as whether there will be a transfer or borrowing from another fund, but we cannot end the year with a deficit balance. Councilmember May asked about the fundraising for the Rambling River Center and how those funds are handled. Parks and Recreation Director Distad explained we collect the money and deposit it in either the miscellaneous or donation line item. Councilmember May asked ifwe are seeing the net number with the fundraising dollars accounted for in the deficit balance. Finance Director Walters confrrmed they are included in the fund balance and used to pay off the deficit 7 Council Minutes (Regular) September 20, 2010 Page 5 and not for operations. Parks and Recreation Director Distad stated the funds for the naming rights program will come in over five years. Liquor Store - Councilmember May noted we have six out of eight months with revenues under expenditures. She felt we need to look seriously whether we want to continue operating a liquor store as a City function. Street Light Utility - Councilmember May noted because we did not start collecting in January and February, how will we make that up? Finance Director Walters explained at the end of the year, the additional two months billed in February for November and December, that money will be included as 2010 revenue. It will show as a receivable at the end of the year. We should come out very close. With the current numbers we are two months behind, so two additional months will be almost $25,000. We may have $1,000 - $2,000 deficit at the end of the year. Councilmember Wilson asked about the street light utility. One of the suggested benefits was consistency in the revenue stream and we would be taxing residents equally for street light use. We are seeing expenditures across the board and revenues seem to be unpredictable. Ifwe are looking at foreclosed properties, where Farmington is higher than the average, that will have an impact. Finance Director Walters stated the banks are paying the bills, but there is a delay for a period oftime. We count it as revenue when it is billed. He was concerned that if we do not break even at the end of the year, there will be a transfer from the general fund. He felt it should be discussed that this be brought back into the general fund rather than separated. Councilmember Wilson also noted in liquor operations, April and July were the only two months we had positive revenue. When we added the second liquor store, we knew revenues would be lagging. When he reads comments, which may be reasonable, that sales were off because offour Saturdays rather than five and that the weather was down, that is not a business model he is comfortable with. We need more predictability to the revenue stream. He asked if this will be the ongoing business model for liquor operations. Councilmember Donnelly noted we have always paid the street lights before; it is not a new expense, but a way to cover the cost. What is confusing is that it is not the same number every month. Finance Director Walters stated the number of people billed each month is different. They are not billed monthly, they are billed quarterly, and there are different entities in each group. City Administrator Herlofsky stated we have four areas that are billed, and there may not be the same number in each group. Finance Director Walters noted every third number is similar. Councilmember Wilson asked why there is such a big fluctuation and what happened in July vs. August with expenditures. There was some maintenance in July and it was explained in the July report. Councilmember May stated we need to remember why we did this. It was to reduce the budget in another area. Her concern with this type offee is that it becomes it's own 8 Council Minutes (Regular) September 20,2010 Page 6 separate entity and this was to try to reduce the overall levy because we have a separate utility fee. Mr. David Pritzlaft: 20255 Akin Road, noted in the minutes from the last meeting, a resident had a concern with noise from the Legion. It was missing from the minutes that Mayor Larson would take care of the issue. Mayor Larson stated he had a discussion with the Police Department and the review is ongoing. City Attorney Jamnik stated no amendment to the minutes is necessary as they are not a verbatim transcript of the meeting. 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS a) Adopt Resolution - Amending Schwiness Retail Center (Farmington Marketplace) Planned Unit Development Agreement - Planning City Engineer Schorzman presented the PUD Amendment for Farmington Market Place which is located along Pilot Knob Road. The amendment includes six items: 1. An increase in the square footage ofthe building by 200 sq. ft. for vestibules for two restaurants. 2. Parking was reduced by ten spaces to accommodate a playground area. 3. The playground is a maximum of3500 sq. ft. to the west of the building. The Planning Commission recommended that fencing, landscaping, bollards and signage be placed so people will not drive through the area. 4. Add outdoor dining. 5. Change in zoning to allow outdoor dining. 6. Regarding notices for the amendment. Councilmember May had a concern with how the retail centers are turning into daycare centers. The original plan agreed on had traffic flow. We have done this in another area and she felt we are creating one in and out. She did not like the playground area next to Pilot Knob Road. She recalled at one point the Ugly Mug wanted a drive through window and it was denied, and now we are going to allow the entire end of the building to be blocked ofT. The original purpose was for a retail center. She understood the Planning Commission approved it. There are other sections in the resolution she does not have a problem with, but she has a concern with the playground. Living in the area and being able to drive around the building, this will create a different dynamic to the center. Councilmember Wilson asked how the garbage trucks will go through the area. City Engineer Schorzman stated it was determined the garbage could be collected without circling the building by pulling into the parking lot and backing up. This is not an uncommon practice with the large containers. 9 Council Minutes (Regular) September 20, 2010 Page 7 Mr. Larry White, Grand Projects, they built the original center and are involved with the proposed expansion. Regarding the garbage, the collection area is on the corner ofthe building next to the driveway from English Avenue. Mayor Larson stated he was on the Planning Commission when this was built. One thing that was stressed was the ability to circle the building for rITe purposes. He asked if that was a concern. The Fire Marshal was comfortable with the access. Mr. Larry White stated the building and rITe codes are concerned with access to three sides of the building. The building also has a rITe sprinkler system. The center was constructed in 2002. Movie Gallery left the center and the space has been marketed since April. The daycare was ready to take the space. Mr. White stated the playground and garbage circulation have been discussed with Planning staff and there was no concern. Ms. Colleen Warner has been licensed to do daycare in her home for five years and she wants to expand to a larger facility. She will be licensed for up to 60 children, which will result in 12 new jobs for the City. This is an excellent opportunity to keep a business and revenue in town. Any inconvenience to drive around the building is mitigated by the fact of adding jobs and maintaining a vibrant center. The Planning Commission discussed having a non-climbable fence and protection from cars crashing into a fence. These items have been discussed for other projects, but did not result in putting up guard rails or posts, landscape screens, or buffers. Mr. White agreed to put up guard posts and signs on the north and south sides of the fence, and put reflective material on the fence for night. The proposed fence would be very difficult to climb and will be 6 ft. in height. Councilmember Wilson noted this is an exciting opportunity and we will have a good product. He asked about the other inquiries and would like to make them aware of other locations in town. He did not have a concern with mixing a daycare with retail. Councilmember May stated as a customer ofthis retail center, one of the nicest features was to be able to travel from the liquor store to Subway and Movie Gallery and this will affect the general flow. It gets very congested in the center area and people will go around the back side. This could have a detrimental effect on the current businesses and wondered how they felt about this. She felt it will change the dynamic in how the project was designed. Councilmember Fogarty stated she had similar reservations, but then realized her children went to a daycare along Hwy 3. What matters most about a daycare is the people working there and how they take care of the children. This person has a successful daycare already and feels they can have a successful business. She disagreed about the circulation. One of the things the businesses in the other retail center liked about having the daycare was the increase in foot traffic. She does not see a lot of circular activity to the back side of the building. 10 Council Minutes (Regular) September 20, 2010 Page 8 Mr. White noted the row of parking where the playground will be located is the most underutilized parking in the whole center. That driveway as opposed to Subway, has much less traffic. Mayor Larson asked about the safety features and noted they have the non- climbable fence. He asked how they felt about the landscaping. Mr. White replied they were left with the impression from the Planning Commission that these items had been discussed with the last two daycares in town and were required. He drove around and noticed none of those conditions were in place so evidently were not required. The one along the railroad tracks has a 4 ft. high chain link fence. The one on Hwy 3 is the same way. There are no bollards or landscape buffers. He noted City Planner Smick agreed with eliminating the landscaping and changing the bollards to one on each side of the fence and put it where the drive lane is with a sign and reflective tape. They also propose a No Thru Traffic sign by the garbage collection area. Mr. White would like to amend their plan to have three bollards with signs and reflective tape, have the 6 ft. non- climbable fence and eliminate the nine shrubs on the embankment. City Engineer Schorzman suggested since the area has been open to circulation traffic, he felt having bollards on the north end would be appropriate. MOTION by Fogarty, second by Wilson to adopt RESOLUTION R53-10 approving the PUD Amendment removing the landscaping and the southern bollards. Voting for: Larson, Donnelly, Fogarty, Wilson. Voting against: May. MOTION CARRIED. b) Approve Purchase of Playground Equipment - Parks & Recreation Staff was contacted by the NRPA regarding the purchase of playground equipment to be displayed at the conference in Minneapolis. The equipment will be installed in Rambling River Park. The original cost of the equipment was $89,881; the discounted price is $59,427. The Park Improvement Fund balance is slightly over $178,000. Along with the cost of the sidewalk for the Depot Way Arts Park, the balance in the Park Improvement Fund will be $107,025. Councilmember Wilson asked what equipment will be removed. Staffwill remove a climber and a clown swing. The playground border will not need to be enlarged. Councilmember May asked if the Commission discussed the survey, because the survey put trails as number one. This is a large amount of money. Part of the survey did talk about maintaining what we have. She asked about the cost to purchase a couple of playground items vs. the cost of this castle. Parks and Recreation Director Distad replied in neighborhood parks they will spend $50,000 - $60,000 on equipment. This is a good deal for a larger piece of equipment for a community park. Councilmember May noted the Parks and Rec Commission will be spending 1/3 of their funds in an economy that is not replenishing those funds. She understood the savings, but on the tour they saw the condition of the trails and that was the number one priority that residents wanted. Councilmember May asked if vandalism was discussed. Staff noted that occurs on all equipment and they have ways of removing graffiti. 11 Council Minutes (Regular) September 20, 2010 Page 9 Mayor Larson asked if the equipment can sit in water. It can, as it is made from aluminum, steel and coated with a rubber material. Mayor Larson asked if this was not approved, when would the existing equipment need to be replaced. Staff replied some of the equipment should have been replaced years ago. It is in very bad shape and very old. As far as safety, it is still okay. MOTION by Fogarty, second by Wilson to approve the purchase of the playground equipment from Playworld Systems, Inc. and have it installed in Rambling River Park in 2011. Voting for: Larson, Donnelly, Fogarty, Wilson. Voting against: May. MOTION CARRIED. c) Approve Memorandum of Understanding with DARTS - Parks & Recreation The City has had a Memorandum of Understanding with DARTS for use of the bus since 2003. The bus needs to be replaced and DARTS has applied for a federal grant for a new bus. If the grant is approved, the City will enter into a rental agreement for use of the bus for Rambling River Center programs. The Memorandum of Understanding needs to be approved before applying for the grant. It identifies the costs and in-kind services the City will be responsible for if the grant is approved. The cost of the bus is $66,000, and the entire cost would be covered by the federal grant. The current bus will be used as a backup bus. Currently the City pays DARTS $200/quarter to cover a portion of the cost of the insurance. The City pays $150/quarter to cover the operation cost in exchange for the City having use of the bus every Friday for Rambling River Center programs. The City allows the bus to be stored in the Rambling River Center garage as an in-kind donation to DARTS. The new Memorandum of Understanding includes the following: - The City will pay to use the bus on the second and fourth Friday of each month at $35/time for a total cost of$70/month to cover a portion of the operational costs which equates to $210/quarter. - Insurance will be covered by the City during use for Rambling River Center programs and will be addressed in the rental agreement. The City has a provision in its existing vehicle insurance policy to cover rental of vehicles so there will be no additional cost for insurance. - The City will continue to store the bus at the Rambling River Center garage as an in-kind donation. - The cost for the City to use the bus will decrease. Rather than $350/quarter, the cost will be $210/quarter. Councilmember Fogarty stated we used to pay $350/quarter to use it every Friday. Now we will pay $21 O/quarter, but only have it twice a month. Staff explained we were not using the bus every Friday, but still paying for it. On the second and fourth Fridays the DARTS bus will be used for smaller trips and on the fIrst and third Fridays the larger City bus will be used for larger events. Councilmember Fogarty noted this will be an 18% increase. Staff explained the costs to maintain the bus have gone up since 2003. 12 Council Minutes (Regular) September 20, 2010 Page 10 Mr. Kevin Raun confirmed the cost to maintain the bus has grown steadily each year and the maintenance becomes more significant. The maintenance cost was prorated over an annual basis to what it costs for five days. This way DARTS pays for the cost for four days and the City pays for one day. The agreement also allows for extra use of the bus for special events. Councilmember May asked if the current bus will serve as a backup and will it be stored by the City. Mr. Raun stated the grant says to keep the existing bus as a backup and two other 5310 buses owned by DARTS for that purpose. Only the new bus will be stored at the Rambling River Center. Councilmember May asked if the cost has been checked with the local bus company. Staff stated we do not need a special license as it is a 14-passenger bus. The number of people participating is 10-12 and fits our needs. Staff noted if we rented a bus from the bus company we would have to pay for the driver and the rental of the bus. With DARTS we have a volunteer driver and pay $35 for the use of the bus. Mayor Larson asked about fuel. Each party makes sure the gas tank is full at the end of the event. Councilmember May noted the insurance covers rental of vehicles. She asked if that covers transportation of others. Staff stated in the rental agreement with DARTS, insurance will be spelled out and there is a rider of provision in the City's existing insurance that covers the use of the bus. MOTION by Fogarty, second by May to approve the Memorandum of Understanding with DARTS. APIF, MOTION CARRIED. 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) Adopt Ordinances - Utility Franchise Fees - Administration Earlier in the year Council and staff talked about options for covering the cost of seal coating which amounts to $400,000/year. Streets are seal coated once every seven years. The current payment method is to assess property owners 50% of the cost and the other 50% from the road and bridge fund. The road and bridge fund will soon be depleted and the City wants to continue seal coating to maintain the roads. The City could assess 100% ofthe cost to the residents. Council and staff also discussed initiating a franchise fee with local utility companies to cover the cost. Staff contacted Xcel Energy, Dakota Electric, and Minnesota Energy and worked out franchise agreements. The revenue would be outside levy limits. The other methods of collecting the revenue other than through franchise fees is through the levy or assess 100% of the cost to the residents. Councilmember May stated the word "surcharge" is all over this. She would like to table this and have it as part of the budget discussion to determine what it would look like ifwe did not move forward with this. Her biggest concern is the road and bridge fund that was covering the 50% and how do we get around that. The numbers stated in the agreements are not the numbers that will be charged because there is a surcharge from the utility company on top of our fee. She asked how the resident or the business is better off if we are paying a surcharge to the utility company instead of paying a higher levy amount or an assessment. 13 Council Minutes (Regular) September 20, 2010 Page 11 City Attorney Jamnik stated the surcharge references a tariff the companies make over their normal service recovery amount. The amounts in the agreements are the amounts they would pass through as an approved surcharge to their regular rate tariff. The $1.60 in the agreement is the $1.60 that would be listed on the bill as a franchise fee. Mayor Larson asked if the utility companies will receive a cut to do this. City Attorney Jamnik stated it is a very small fraction of the fee and the amount is regulated. Councilmember May would like Council to think about this item. Councilmember Wilson stated he would rather vote on this tonight and does not support it. City Attorney Jamnik noted there are five ordinances. Two of them are renewal franchise ordinances with Xcel and Dakota Electric. The City would like them renewed at the same time to facilitate any changes in the future. Even if Council does not act on the franchise fee issue, City Attorney Jamnik recommended Council act on the franchises themselves. By passing the franchises you do not affect the franchise fees. Councilmember Fogarty noted staff stated it would cost each resident roughly the same over seven years. She understood the City needs long term planning for seal coating and that is not optional. This is the plan we talked about. She did not think the utility companies would do this for free, and it sounds like it is a nominal amount. She is not a big fan of raising taxes and this is raising taxes, but it is absolutely necessary for the City to continue and it is good long term planning. She would approve the agreements. Councilmember Donnelly stated this is just a different way to raise taxes and we have to pay for the seal coating project. We cannot assess residents 100% of the cost; that would also be unpopular. We have to fund this either this way or through raising taxes. The streets have to be seal coated on a seven year cycle and someone has to pay for it. We have to generate the funds and this is a way to spread the cost. The only downside is there is a small fee to the utility company. We are all admitting it is a tax increase. It is a different vehicle for doing this and we are not the fITst ones to do it. Councilmember Wilson found the timing interesting and that it was not brought up for additional discussion at the budget workshop. It was at the last Council meeting we reduced the general fund by $400,000, so we could have opted to leave $400,000 in, which he would not have supported, and this would have been taken care of. He also noted at a minimum we are looking at a $180 cost per business. We are trying to get business and then we are going to tax them. He realized the roads need to be fIxed, but he was fme paying the assessment and was not remotely interested in a new tax. Mayor Larson stated his issue is he wanted to make sure it is fair to residential and commercial/industrial customers. He had asked the Finance Director to do a comparison with one business and it was determined the amount including the 50%, would equal the seal coating costs vs the franchise fee. He asked why not 14 Council Minutes (Regular) September 20, 2010 Page 12 charge this through the City utility bill rather than electric and gas companies. City Attorney Jamnik stated the City does not have the authority for that type of fee. Mr. David Pritzlaff, 20255 Akin Road, stated this is a tax and a deterrent for businesses to come. The amount for businesses is $15/utility so that is $30/month. We will be lucky to keep businesses here and draw businesses here. There has to be a different approach. It will come back to haunt Council just as the street light utility fee. It is not a means of collecting money. Council needs to figure out a different way. If some of it is cuts, then it is cuts. He does not have a problem with the amounts assessed now for seal coating, but he would like to have it more even across the board from one year to the next. To see residents and businesses pay this amount, if you raise $400,000/year and the seal coat does not cost that much, where does the extra money go. It would probably go to the general fund and it will be extra money. We end up with a lot of extra and that is how we get fat in the current budget. The commercial interruptible is more money. Mr. Pritzlaff stated we wanted to take $350,000 from the budget for the street light utility fee. We did not take out a complete $350,000 and does not think we will take out a complete $400,000 from the budget to make up for this. This is a way for the City to make some extra money and overcharge the residents. We should consider a different way to make up this money. He suggested delaying the decision and have a public hearing so people can weigh in as to whether they want to pay $130 seal coat assessment every seven years or this. He would rather pay the assessment because then the money is in his pocket and not the City's. Mr. Jeff Thelen, owner of Thelen Cabinets, stated the City Engineer met with him prior to the meeting to explain this. He was told over seven years the amount would be the same for his business. Mr. Thelen stated that is assuming he has a small genera~ non-demand business being charged $2.25/month. In fact, he has a demand meter which is $25/month. He does not understand what his electric usage has to do with the streets and how he should have to pay for them. This is $25/month for the electric meter and $15/month for the gas meter compared to what he paid in 2007 for seal coat of$613. He has a 548% increase over seven years with these franchise fees. He recognized the oil rates were cheaper three years ago and there is inflation. Over seven years he will pay $3360. Finance Director Walters explained it is $25/month for the gas. She called the electric company and was told Mr. Thelen is under small general, non-demand for electric, so the fee is $2.25 for electric. Mr. Thelen stated there is a charge on his bill every month for demand which is $53/month times the charge. Finance Director Walters stated his business is demand for gas, but not electric. She called the electric company and was told he is on non-demand. City Administrator Herlofsky noted it is stated the fee is an account based fee on each premise and not a meter based fee. Mr. Thelen stated on a demand, there is the demand meter, the regular meter and the off-peak meter. This is only for one of those meters and he is on a demand meter. Mr. Thelen asked for an example of someone that would be on a demand meter or the difference between a demand and a small commercial/industrial. Finance Director Walters stated the cost to 15 Council Minutes (Regular) September 20, 2010 Page 13 seal coat in 2010 would be $1,735. What cost Mr. Thelen $650 in 2007, now in 2010 costs $1,735. City Engineer Schorzman stated the $1,735 is the total cost to seal coat. In 2007, the $613 was only half the cost. The true cost to seal coat in the industrial park for Mr. Thelen's portion was $1,227 in 2007 and based on bids for 2010 the same area would cost $1,735. Mr. Thelen recognized the City was not using the road and bridge fund to cover the costs, but does not agree with that. It does not make sense that the repair of the roads is not based on the usage ofthe roads, but on how much electricity and gas he uses. There is no comparison from one to the other. This is a way to grab a little more money and not have people come to Council once every seven years to discuss what should be out in the open. If gas and oil prices are up, he is happy to pay the fee through an assessment. At least that gives the public an opportunity to discuss it with Council rather than these fees that have no correlation with street usage. City Administrator Herlofsky stated we explained it to the utility companies that this would be maintenance of the roadways and access to their facilities in our right- of-way. There is an attempt to establish a relationship to the current method of assessing, which is based on residential unit size. In the industrial park, a multiple of the residential unit is used. Mr. Thelen asked for examples of the type of businesses for the other classifications. He asked what type of business would be a small general non-demand. Staffwill obtain a list. He asked ifall businesses in the industrial park are small general non-demand. He asked if the air traffic control center would be a large commercial industrial or small commercial demand? Mr. Thelen stated there are other people in the community that are not paying assessments because their streets are not seal coated. There are a couple gravel roads on the west side of town that do not pay seal coat because they are gravel. He did not believe Ash Street pays seal coating and asked if they would now be included in the franchise fee. City Administrator Herlofsky stated every resident will be affected. Mr. Thelen stated then it is not all going to seal coating. City Administrator Herlofsky stated it will all go to seal coating. There will be a special fund set up for these revenues. If there is a year where there is some left over, it will stay in that fund. The volatility of the seal coat process is the price of oil and the pattern and uses of the street. This was an attempt at a fair way to approach the issue. Mr. Thelen asked Council to keep discussing it and not decide tonight. A lot of people will be taken by surprise that the cost they would pay on a seven year seal coat will double because the road and bridge fund will no longer make a contribution. A lot of businesses will be quite surprised if they will be paying an additional $2.25 or $75/month. Right now staff cannot tell us which category we fall into. Don't decide prematurely. Mayor Larson agreed to table this as it is a very confusing document. We need to get more information and he would like to see how this will affect the commercial and industrial businesses. Councilmember Fogarty wanted to clarify that Mr. Pritzlaff commented about extra money being absorbed into the general fund. That is not how this will work. This money will be specifically for seal coating, in a fund for seal coating. Some years cost more, some cost less. This is not an expense where ifwe do not do this, we will have to raise taxes $400,000. The fund we have been using to pay 16 Council Minutes (Regular) September 20, 2010 Page 14 50/50 will be gone. We have to come up with some type ofa permanent funding source. Whether it is a levy we put straight into that fund or a franchise fee, the reality is we have to come up with some long term planning to pay for these expenses. She has no problem paying an assessment. This was an attempt to equalize the payments. She was comfortable supporting that as long as there is a permanent funding source to do something that is critical for the maintenance of the roads. She would support continuing to discuss this, but the fact is the residents will pay double what they are paying now at some point. That fund will be empty. There is no money going into that fund on a continual basis that will support the $400,000 we need. She wants a plan in place. What we are doing now is not sustainable. Councilmember Donnelly asked staff to explain why the road and bridge fund is going away. City Engineer Schorzman stated the money that was used to pay the City's portion of the seal coat project was a one-time amount of money we received related to the Pilot Knob Road extension project. At that time it was decided the money will go to offset the assessment on the seal coating and it did that for several years. Now that money is gone. It has not been the City's practice to take other funds from the road and bridge fund that are acquired through MSA or other things, and use that as a consistent source of revenue for the seal coat project. Councilmember Donnelly stated because of that, people will see the cost double for the seal coat project. He assumed this was neutral to everyone; either they are assessed or they pay a franchise fee. Either way, what people pay for seal coating will double. We need to work more to explain this to everyone. He was expecting this would be the same as an assessment paid over time and would not cost more. An amount of$1256 vs. $3300 is not the same. City Engineer Schorzman stated based on the information received from the utility companies today, the reality is there may be some increases and decreases because of the new system. On Mr. Thelen's business property he looked at the cost in 2007, and equated it to today's dollars. The cost to seal coat in 2007 was $.76/square yard. The latest bid received for this year was $1.19/square yard. He took the cost in 2007, divided it by $.76 x $1.19 for today's dollars. He applied a 5% increase which is what we see annually, to go out to the next four years. His estimate ifwe pay for it as we go vs. spreading out over time, is $2,335. Over that same time, based on information from the utility companies, over a seven- year period that property will pay $2,289 in franchise fees. We are comparing $2,289 to $2,335. Looking at residential, this year the cost for seal coating is $216.88. The estimate is that will go up to $338 by the end of the seven year cycle. The average resident will pay $268.80 in franchise fees. The purpose of this exercise was Council's request to figure out a way to make it comparable year to year and to get away from the fluctuations because of how the City developed and to fund the program. City Administrator Herlofsky noted Councilmember Wilson mentioned the $400,000 in reductions. The two were unrelated events. We brought this in this week, because he took time during the summer to get all three utility companies together and to agree to an amount. We received the documents within the last couple weeks and wanted to make sure they were correct. 17 Council Minutes (Regular) September 20,2010 Page 15 Councilmember Donnelly stated it sounds like we came close to what he thought we would do. We have to allow some time to explain it to the people and see if there is a huge backlash. When we have assessments we have complaints also with people being charged different amounts. This way everyone pays the same every year and it should balance out. The intent is good and he agrees with the principle of it. The costs will go up and that needs to be explained because the road and bridge fund does not have the funds anymore. Councilmember Wilson stated ifwe are directly taxing someone to repair a road, he can justify the tax that year. The average resident is tired of having government tell them we are in dire needs and we need to tax. He does not disagree with Councilmember Fogarty about a long term solution, but maybe we should spend an equal amount of energy trying to reformulate the methods we use to look at the neighborhoods. Instead of once every seven years, take an average and project it out and set it on a fee schedule. He would rather directly tax someone for the event when it occurs as opposed to throwing out a fee. As we see with the street light utility it does have the ability to be short revenue. Councilmember Fogarty stated another goal we had and the reason the seal coat process was set up the way it was, was to include tax exempt properties which do use the roads. Whatever Council discusses, she does not want to lose that piece. We did not want to go to a direct levy, because it excludes the tax-exempt properties and puts the burden more on businesses and residents. StafIwas given a big challenge to equalize this and to include tax-exempt properties. If there is another way, it has to be long term and has to be set for this project. She was adamant the tax-exempt properties be included in the formula. Mayor Larson stated what he did not want to happen is what Mr. Thelen brought up. Staff says it will be a wash, Mr. Thelen says it will go up 500%. Councilmember Fogarty stated it will double. Mayor Larson stated we are not there yet. It is a very confusing document and we need to work on it more. He wanted to see this at a workshop. He wants to see in concrete numbers, this is what they would pay today under the current assessment policy and this is exactly what they will pay over seven years if done today. We need to know the difference between meters and who will pay what. City Engineer Schorzman clarified he wants to see under the current assessment at 50%? Mayor Larson clarified at 100% assessment. Mr. Jeff Thelen stated City Engineer Schorzman gave some figures for seven years from now that a residential seal coat bill would be $338. Over seven years the residential, at the current rates, are paying $268 over seven years. We know we are short $70 for that cycle. If it costs $338 and he has only paid $268 over seven years, you are short $70. City Engineer Schorzman stated on the seventh year you would be short $70. Mr. Thelen stated you have to increase the residential rate to equal that out, because now it has to be that the businesses are subsidizing that. Mayor Larson stated on the seventh year we will be short, but in the previous years we will be over. Mr. Thelen stated at a residential rate, over 18 Council Minutes (Regular) September 20, 2010 Page 16 seven years, his house would pay $268. In seven years it will cost $338 to seal coat. Mayor Larson stated on the seventh year. In years one and two it will cost $216 and you will pay $268. Mr. Thelen stated businesses are still subsidizing the residential. Mayor Larson stated that is why he wanted concrete numbers and we need to do more work. MOTION by Fogarty, second by May to table this item for a workshop. Voting for: Larson, Donnelly, Fogarty, May. Voting against: Wilson. MOTION CARRIED. 13. COUNCIL ROUNDTABLE a) Set Budget Workshop City Administrator Herlofsky suggested October 11. Councilmember May asked if the workshop would be with the City Administrator and Finance Director. Mayor Larson replied yes. City Administrator Herlofsky noted there is an EDA meeting next week and the following week is a Council meeting. Councilmember May noted the next workshop was to go over the line items staff brought forward. She would like to meet next week for a shorter workshop to discuss the line items staff presented. Ifwe wait until October 11, we will run out of time for additional discussions. Councilmember Wilson suggested September 27, from 5:30 -7:00 p.m. prior to the EDA meeting. Councilmember May noted there has not been any discussion with the items presented; they were just presented with the preliminary budget. Councilmember Fogarty noted we knew we needed to discuss them. We did not approve the recommendations, just the number. Councilmember May stated if Council has an opportunity to voice their opinions on what was presented, then we could meet again on October 11, to give staff some time. We would just talk about the document already created. Perhaps there are items where we will say no and we need to let staffknow sooner rather than later. Budget workshops were set for September 27, at 5:30 p.m., and October 11, at 6:00 p.m. b) Neighborhood Tornado Recognition Ms. Mary Vanorny sent an e-mail recognizing her neighbor, Steve Borntrager, who alerted neighbors to a gas leak. Bachman's Cedar Acres is offering a discount for the purchase of trees to Farmington residents with tornado tree damage. c) Ice Arena Ribbon Cutting This event will be held on September 25, with a ribbon cutting at 12:00 and a free open skate from 12:30 - 2:30 p.m. Councilmember Donnelly: He spoke to a senior citizen who noticed on the list of reductions no toilet paper for the Rambling River Center. This person noted Homecoming is coming up and suggested collecting toilet paper from the trees. 19 -- -- ---- - --~.__.._- ---- Council Minutes (Regular) September 20, 2010 Page 17 Councilmember Fogarty: Hydrant flushing will occur October 4-8, with hydrants north ofHwy 50 and west of the railroad tracks and October 11-15, hydrants will be flushed downtown and east ofthe railroad tracks. Homecoming events start this Saturday which will tie in with the opening of the Ice Arena. Councilmember May: The Rotary Club will be hosting Rocktoberfest on September 25. There will be several bands and buses will be running throughout the community. Funds stay within the community. Parks and Recreation Director Distad: Staff is obtaining proposals from contractors to remove the tree stumps and repair the trail on 195th Street due to tornado damage. Mayor Larson: He noted the landscaping is done at the Rambling River Center. Staff stated it was an Eagle Scout project. The Haunted House for the troops will be held at the Fairgrounds October 8 and 9. The Walnut Street reconstruction project is almost done and it looks great. He encouraged everyone to buy locally. He thanked the City Council for their support last week and postponing the budget meeting. MOTION by Fogarty, second by Wilson to recess into Executive Session at 9:59 p.m. APIF, MOTION CARRIED. 14. EXECUTIVE SESSION a) Labor Negotiations Present: Larson, Donnelly, Fogarty, May, Wilson Also Present: Joel Jamnik, City Attorney; Peter Herlofsky, City Administrator; Brenda Wendlandt, Human Resources Director 15. ADJOURN Respectfully submitted, Cynthia Muller Executive Assistant 20 Budget Workshop Minutes September 27, 2010 Mayor Larson called the workshop to order at 5 :31 p.m. Present: Larson, Donnelly, Wilson, Fogarty (arrived 5:36 p.m.), May (arrived 5:36 p.m.) Also Present: Peter Herlofsky, City Administrator; Teresa Walters, Finance Director; Cynthia Muller, Executive Assistant MOTION by Wilson, second by Donnelly to approve the agenda. APIF, MOTION CARRIED. Mayor Larson stated Council had a lot of questions on staff's reductions amounting to $400,000. Councilmember Wilson stated it is hard to understand the implication of some of the smaller items such as supplies of Kleenex, toilet paper and hand soap. That does not do much. Revenues are declining and one of his recommendations is to look at management staff and ways to consolidate that area. He did not have any specific positions in mind. This is consistent with what most organizations would do with declining revenues. He realized staff is optimistic about the housing market, although with the federal frrst time homeowner credit that expired in April, and projects coming on line in 2011, it is hard to believe there will be an up tick in market valuation which will further challenge the City. To look at line staff, it becomes more challenging. Councilmember Donnelly stated there are some things put in here for effect, such as toilet paper and closing warming houses which do not amount to that much money. (Councilmember Fogarty arrived). As far as staffmg, Council told staff to cut $400,000 and included in that is $130,000 in staff. He did not want to get into how to manage that and how to deliver the services. (Councilmember May arrived). Expecting donations and closing the warming houses are not acceptable. We need to come up with a different way to save that money. He was fine with the building permit number. We have the CDA senior housing next year. If Council does not like the number, then we have to cut $20,000 more. Councilmember Wilson stated he sees consistently throughout the list is office supplies, legal services, dues and subscriptions, equipment repair. When we look at the expenditures every month, he liked the fact we support the local hardware store, but it seems there are a lot of petty expenditures with Municipal Services. He asked if there was a better way to look at repair of vehicles. Under Recreation programs, the puppet wagon, etc. are programs people pay for and add value. We have this new Rambling River Center and it seems we are cutting it at the ankles by reducing heating expense, etc. Are we making it an enjoyable place for seniors to go to or are we making it a less friendly place. City Administrator Herlofsky noted the new HV AC system should provide some efficiency with heating and cooling. Councilmember Wilson did not want to micro-manage the City budget, but we need to be prepared for a lower number than $340,000. From the staff end, it would be nice to know before we approve the budget, what your plans are if we fall short $50,000 or $60,000. 21 Budget Workshop Minutes September 27, 2010 Page 2 City Administrator Herlofsky stated the opposite of supplies is inventory. Inventory also has a cost associated with it. Each of items does not mean someone made a trip for each item; a number of them were purchased at the same time. With the variety of things they have to work with, it is less expensive to do it this way rather than have an inventory. Councilmember Wilson clarified we have always done our own fleet maintenance and that still may be the best way. At the same time, there are businesses that do that kind of work rather than government paying for it. The private sector would gain revenue from us. He felt we need to be more nimble with those kinds of services. Finance Director Walters stated the problem is there are not a lot of places that can fIX the type of equipment we use. It would cost more to fmd someone. Councilmember Wilson asked if the Mayor was hoping to leave tonight with a consensus as to what Council wants. Mayor Larson stated he hoped Council would get on the same page and give staffbetter direction. He thought Council gave good direction last time, but after seeing this list, Council didn't. Mayor Larson agreed with Councilmember Wilson and strongly believed we will have to eliminate a management position. He asked ifhe should name the position. He also had specific questions in the Administration section. Office supplies will be reduced by $10,000. Mayor Larson asked how will we do that, what is being eliminated and what position will that put us in. City Administrator Herlofsky stated paper will be reduced and with that comes less copies. We will have to trim back and watch every little thing. Mayor Larson asked what will be eliminated. Finance Director Walters stated color toner and not making color copies. City Administrator Herlofsky stated the color copier at the Rambling River Center would be removed and we are looking at all our copiers. Mayor Larson stated we have a $5,000 reduction in color copies. What will not get copied? What will not be put out because of that $5,000? City Administrator Herlofsky stated we may tell Council at the beginning of the year we will not provide paper copies and we will send the agendas bye-mail. Mayor Larson stated those are black and white. Let's deal with color copies. City Administrator Herlofsky stated the Park & Rec brochure, anything that comes out in color. Mayor Larson asked ifhe could be more specific. Staff came up with $5,000; do we have an idea other than some things. City Administrator Herlofsky stated we have color copiers and we will get rid of them so nothing will be done in color. Mayor Larson asked if that means we will not put things out or they will be in black and white. Ifwe are going to cut things, Council needs to know what so if someone asks we know what to tell them. City Administrator Herlofsky stated Council asked for $400,000 reduction and that is what you have. We looked at all of the items and what we could eliminate. One of them was reduce copies, no color, reduce office supplies. We looked at items that would be reasonable and that we could work on through the year. We will be cutting on a day-to-day basis next year. Ifsome emergency happens where it needs to go out on paper, we will say this is where we went over. We will try to cut expenses all over in a very general sense. It would be hard to say we will eliminate certain documents. The Park & Rec brochure will not be color. Mayor Larson asked will it not come out at all or will it be in black and white. City Administrator Herlofsky stated it could be either case. It could go through e-mail or on the website. Mayor Larson asked how staff came up with $5,000. City Administrator Herlofsky stated we looked at the current expense and we left enough in the accounts to make it through the year. Finance Director Walters stated we looked at how many color copies we actually make because you can see that by the meter. We may have to have at least one color copier. Mayor Larson asked if the $10,000 reduction in office supplies is all paper. Finance Director Walters 22 Budget Workshop Minutes September 27, 2010 Page 3 replied no, it is also pens and general office supplies. City Administrator Herlofsky stated we have $37,000 in 2010 in office supplies. Finance Director Walters stated we also looked at where we are right now. We have a $37,000 budget. What have we spent year to date and what do we anticipate spending by the end of the year? We have told people not to order anything unless you absolutely have to have it. By the end ofthe year we could be spending $8,000 less. Mayor Larson was worried about people not being able to do their jobs properly because they do not have the equipment and supplies to do it. He was concerned $10,000 is a lot of office supplies. Staff does a great job and he does not want to set them up. Finance Director Walters stated year to date we have spent $10,482 and have a balance of $27,000. Mayor Larson stated so the $10,000 reduction in your opinion will work. City Administrator Herlofsky stated everything we have brought to Council we intend to make work. Council said to cut $400,000. We did it in a way that we thought would be something we could work with. People know there is only so much in the budget and they will make an effort to only spend that much. If things come up that are over and above, we will deal with that. When we look at the budget we look at categories, divisions, and the total budget. We will do our best to manage it. He felt we will be alright with the budget that was presented. Mayor Larson then asked about communications. Postage is being reduced by $2,500. That will mean something not being mailed. Do we know what? Finance Director Walters stated it was discussed to e-mail the newsletter and set up a system where people would have things e-mailed on a regular basis. Mayor Larson asked if that meant a list servo Finance Director Walters replied yes, but that is an additional cost. We did not budget for that. City Administrator Herlofsky stated we will try to fmd ways to cut back on postage. Where we can e-mail we will, rather than use postage. Mayor Larson asked about Community Development where professional services will be reduced by $2,300. Staff replied that will be using the attorney less. Even with legal services in general, it has been discussed to have the City Attorney present at Council meetings once a month. Council meetings are covered under a retainer, but there is a cost for him being here. Mayor Larson asked about Human Resources and cutting professional services mandated employee training by $3,300. He thought it was said staff would like to keep the training to reduce litigation. Are we risking litigation by not training? City Administrator Herlofsky stated we had a budget in that area of$128,000. We may have to look at some other line items in that account. Finance Director Walters stated if it was mandated training we have to do the training. Staff would not cut anything unless those employees have already had that training. Mayor Larson confrrmed we were comfortable in the $1,500 reduction in the labor attorney. He asked ifwe should leave in some overtime for IT in case the Police or Fire Departments need something. City Administrator Herlofsky stated we would have to reschedule the time worked. It will not keep the job from being done. Mayor Larson suggested leaving half that amount in. Mayor Larson asked about security training being reduced by $750. That is for the security equipment around the building. Mayor Larson asked if it was a good idea to eliminate the maintenance agreements on the equipment. City Administrator Herlofsky stated we may have some deductibles. We may pay based on a need for someone to come in. Mayor Larson asked about the Police Department and how much we spend on animal control and how will we reduce it by $10,000. Staff found a different approach to handle this. In Police Patrol we are reducing shooting supplies by $2,000, tasers and handguns by $4,000, and officer training by $7,000. Mayor Larson asked what this will do to us. What training is being 23 Budget Workshop Minutes September 27, 2010 Page 4 eliminated? Finance Director Walters recalled they will not need new officer set-ups and training. City Administrator Herlofsky explained the reductions are general and we looked at items where we had some room. Councilmember Fogarty stated she understood staff was comfortable with the recommendations, but the reality is after the frrst of the year and a resident asks why wasn't the Park & Rec brochure mailed out, she needs to know that is one of the items she was responsible for eliminating. It is not micro-managing, it is to be able to answer to residents and to understand it. City Administrator Herlofsky stated we do not have a lot of people, and when things happen we do our best to work with it. We will have to watch each month carefully. Mayor Larson noted the Fire Chief was under the impression his membership would be reduced by two, but this document shows five. City Administrator Herlofsky stated the reduction is two members for a total of 50 members. Mayor Larson did not like what we are doing to Engineering. At one point we are saying we want plats reviewed within 30 days and this is saying they need to wait. Some of the things we asked staff to do earlier this year, we will have to take back ifwe implement this and he did not want to do that. Councilmember Fogarty stated the 30-day process is for commercial and retail. That would push residential to a back burner. City Administrator Herlofsky stated Council has asked to get away from Bonestroo and try to do more things with staff. Some of these cuts are not a partner in that. Ifwe have development going, we will not slow it up because we are shy about calling in a consultant. We would like Council know as soon as possible. Mayor Larson spoke with City Engineer Schorzman about the intern they had this year and staff really liked him and thought the intern would be a great fit in the City. City Engineer Schorzman felt he could justify hiring that intern and making it up by reducing professional services. City Administrator Herlofsky stated there is some money in the budget for professional services. Finance Director Walters noted full time salaries shows as a reduction, but as we are talking about reductions, it is an increase in the budget. Councilmember May noted that was discussed at the Engineering workshop that this would be the last year to use Bonestroo and in 2011 we would look at getting someone on staff to replace them. It was clear from the workshop that we were paying more than we would ifwe hired someone. But because of the experience that person has, staff wanted more time to work with him. Mayor Larson stated it is two different people; one would be an intern and one an Assistant City Engineer. Mayor Larson stated he agreed with Councilmember Wilson that a department head position needs to be combined. City Administrator Herlofsky stated if he throws a dart and picks someone that is not who Council agrees with, then it makes it a very interesting place to work. He cannot recommend a reduction in staff beyond what we have and expect to get the work done. If Council feels there is a need for change, then he needs some consensus from Council that will direct that to be taken care of. He suggested letting the individuals know as quickly as possible so there is some time frame to allow people to plan ahead. Mayor Larson stated the Administrative Services Director duties are not worth the money we are spending and he would like to see that position eliminated and combined with others. 24 Budget Workshop Minutes September 27, 2010 Page 5 Councilmember Fogarty agreed with most of what Mayor Larson said. Her overall concern is that a lot of what we are seeing in this list is one time reductions. She does not anticipate money coming in anytime soon. She was looking for more long term solutions and does not see many. Cutting back on training which we have done, you cannot do that forever. We have to have well trained staff. They need the training legally and ethically. It is better for our organization to be well trained. You cannot continue to cut that every year. She was not comfortable with cutting that for a third or fourth year. Councilmember Wilson agreed. Councilmember Fogarty appreciated what the Police Chief has done and it is a good one time cut for 2011, but it does present a problem for 2012 where we may have turnover. She found closing the warming houses, closing the pool, eliminating the puppet wagon, etc. unacceptable. Mayor Larson stated if we keep the warming houses open, then we need to remove the snow from the rinks. Councilmember Fogarty asked about the warming house person removing the snow from the rinks. Staff explained it is too difficult and takes too long to shovel snow from the ice. Councilmember May stated there is no one in this room that is not experiencing tough times. She empathized with the work staff has and is in total agreement with having to look at the management level. We have to look at long range cuts. She appreciated the questions from Mayor Larson about paper because it seems that is an easy number to plug in. She appreciated he gave it some real thought because likely some of those numbers are not realistic. The long term view of the budget is where her mindset is and 85% of the budget is labor. That is an unfortunate circumstance. We need to figure out how to rearrange management and if that means we have to hire a clerk down the road for far less money to do some tasks, maybe we have to look at that, but the management level has to be looked at. One thing a resident brought up was the DOT officer so she was surprised to see animal control in the reductions and no mention ofthe DOT. She would like some follow-up from the Police Chief on that. Councilmember May asked if the franchise fee was taken into account with these numbers. City Administrator Herlofsky stated the franchise fee has nothing to do with the general fund budget. The franchise is to cover seal coating where half was assessed and half came from the road and bridge fund. Councilmember May asked when the franchise will be discussed again. City Administrator Herlofsky suggested having a discussion at the October 11, workshop. Councilmember May asked if there has been any discussion on the Economic Development position. We have two City Planners and she appreciated them having the extra time because there is not a lot of new development, but felt now is the opportunity to scale down in that department. She also had a note about Bonestroo which was discussed. Councilmember May noted staff responded to her fmancial summary questions, but there was no answer on the investment interest. Finance Director Walters tried to explain what we did, when we did it, and how things have changed since then. Councilmember May asked under Human Resources what does limit employment advertising mean. Finance Director Walters stated ads would not be placed in the Star Tribune, but posted on the LMC website, and cheaper newspapers. Councilmember May asked how much the calendar costs. She liked the calendar, but if she had a choice between a rec program and the calendar, she would choose the rec program. Finance Director Walters stated some of the calendar is paid for through advertising. Staff will look at this. Councilmembers noted there is a lot of information in the calendar. 25 Budget Workshop Minutes September 27, 2010 Page 6 Councilmember May asked if they will see a $500,000 reduction on October 11. City Administrator Herlofsky was trying to determine a consensus from Council. There have been comments regarding staff reductions and other items. It is difficult to accommodate each individual preference. Councilmember May stated that was the agreement to see $400,000 and $500,000. Councilmember Wilson stated for the preliminary levy we agreed to $400,000 and then work on $500,000 to see what that would look like. Finance Director Walters asked if there was a consensus as to what Council wants to see reduced from the budget and what they do not want reduced. Councilmember Wilson agreed with Councilmembers Fogarty and May. Staff is doing a good job with working with what we have, but Council is not as optimistic on the revenue side as staff is. Market values of homes continue to go down which is a negative impact; we lost the market value homestead credit which is a negative impact; the interest is a negative impact; the debt service is a negative impact; there is so much uncertainty about the revenue side. That is why we have to look at staff. We need to be as innovative as possible and focus on the things residents want us to focus on - Police and Fire, picking up the garbage, having clean water and lessen some ofthe things that are not as high a priority. Councilmember Wilson noted we have rents at the liquor stores. In the budget we are seeing expenses and revenues being about the same at 7. 5 %/year. We are transferring about $150,000 - $170,000 to the general fund. He asked if it could be offset by new taxes coming in from non-government business being there and not having some of the other expenses. City Administrator Herlofsky stated in the last ten years the liquor store has provided just over $1 million in transfers to the general fund. We would have a hard time getting fees to match up to that. He agreed that the leases entered into ten years ago probably were not to the best advantage to the City. They were done with the idea there would be some long term growth. It is retail which suffers some ups and downs. There have been a couple more liquor stores strategically located in Apple Valley and Lakeville to capture some of that same market. We are paying substantially more in the lease and we have made some changes in the labor contract that have starting wages for new part-time clerks at $5 less per hour. There will be about $20,000 less in expenses for employees this year. It will take the next six months to get things straightened out with the current leases. Staff is looking at options and will get back to Council. Councilmember Wilson asked what the transfers have been over the last three years. It has amounted to $300,000. City Administrator Herlofsky noted we may want to borrow some money to build a liquor store and the mortgage could be for ten years and it would cost less than a lease. We are still working on the numbers and the location. Mayor Larson stated his reasons for wanting to reduce management is so Council can have packets, keep paint for the foul lines and ag lime for the ballfields, keep the grass maintained in parks, keep the warming house open, keep the snow off the rinks, keep the puppet wagon, train the Police properly, etc. He wants to keep some services rather than cut all services. Councilmember Fogarty stated she understands what they are asking the City Administrator to do; to eliminate staff. It is not an easy thing to do. None of us have an ulterior agenda. We are looking at the things we have to cut which is a staff member. It is not an easy time to cut staff. It is not a great market to turn people out into and our staff is fantastic here. There is no ill intent; it is a matter of wanting to preserve other things. City Administrator Herlofsky stated he has been told there were two positions, now there is only one? Mayor Larson stated he is suggesting one. Councilmember Wilson stated two positions have been identified. 26 Budget Workshop Minutes September 27, 2010 Page 7 Councilmember May stated she is looking at the $500,000 number, so she would say two positions. City Administrator Herlofsky stated in the budget there is one retirement that we will not replace and a second one that may result in moving around of some people. There is a posting and that is where the moving around of people comes in. Councilmember May stated there is not a lot going on in Economic Development and we have two Planners. Mayor Larson stated the Planners are plenty busy now and have a lot going on. Councilmember May stated we have identified what we need is a Director position in charge of the EDA. She would like to visit that this time next year. She would like to eliminate the Economic Development Specialist position for 2011 and re-evaluate what we need in 2012. City Administrator Herlofsky noted activity has picked up and we have been selling buildings. Now we want to move away from that support. The two positions mentioned report directly to him and it means their duties will have to be distributed. He clarified they are talking about the Administrative Services Director and the Economic Development Specialist. Councilmember Fogarty replied that is what we are talking about. Finance Director Walters asked about the other items put back in the budget. City Administrator Herlofsky stated right now nothing has been put back in the budget. There is no consensus from the Council. There has been a lot of discussion. We have $400,000, with the two positions you have another $150,000 at least. Mayor Larson noted he just went over a list of things he wants put back in the budget. Councilmember Donnelly stated we started with a number, we got the number, but that did not include the positions we wanted. Now we are taking people out. Councilmember May stated the number was $400,000 and $500,000. This happened last year where it is all about the bottom number. To her it has been about the higher number. That is where positions come in. With 85% of the budget being labor, that is where we have to look. The warming house and things for kids to do are not one ofthe options. Councilmember Donnelly stated the warming house amounts to $3,000 and was put in for effect. We set the levy and we have to stay under that. We want to re-organize and get rid of some people. We are talking about a long term budget. Councilmember May noted we have 195th Street payment coming up in 2013. That is why we are talking about more long term solutions. Councilmember Donnelly stated there have not been good decisions made in the past such as Vermillion River Crossing. We will see about 195th Street. Vermillion River Crossing was a complete surprise. It is a tough market and he understood we need to consider everyone, but we are punishing the staff for decisions they have no part of. There were high level decisions made that are crushing us now. He felt staffwill not get a complete consensus on what to do. Councilmember Wilson took full responsibility for the Spruce Street bridge. He voted for it and for the 15-year tax abatement. Council had every indication it would be successful and it hasn't been. We do not have revenue coming in. He was sorry we will have to let two people go. We need to adjust to the fact we do not have new revenue coming in. When revenues pick up, he wants to be able to hire people. What he does not want to do in the mean time is for a lot of these positions such as maintenance, municipal services, engineering, cut them up from doing their job when we can reduce staff and allow everyone to do a better job which the community is looking for. Councilmember Fogarty agreed the public will pay one way or another; through dollars or through a reduction in services. They will pay both ways. The majority of Council is leaning more towards keeping taxes down and we understand there is a flip side that it will reduce 27 Budget Workshop Minutes September 27, 2010 Page 8 services. Residents won't pay as much in property taxes, but they will see a reduction in services. We have to leave the avenues open where we can have the most potential for growth. City Administrator Herlofsky needed to have a clear understanding of what Council is looking for. Changing people's employment is a very serious thing. Also with the current positions we are talking about there are some issues with the bargaining unit and bumping and other things that will occur. The clearer that is determined by the Council the more effectively it can be managed and started in a way that cuts down on the concern by employees for their own well being. When you start talking about one position, it can affect three or four more. That is why it is critical we have a strong feeling from Council on what they want. Councilmember Fogarty stated to her the difference between $400,000 and $500,000 is one position. City Administrator Herlofsky asked if Council still wants to go to $500,000. Councilmembers would still like to see it and Councilmember Fogarty felt that cannot be done without eliminating two positions. Mayor Larson would like to see that option and also have funds available for the Deputy Registrar. Councilmember Wilson asked if City Administrator Herlofsky was asking if Council was looking at staff members beyond the proposal. There are two included in the $400,000 at a value of$130,000. Mayor Larson stated we accept that, but also another one in management so we can effectively run other departments. The position he mentioned will relieve some of the services we have cut so tight where we are handcuffmg ourselves and also another position to bring us closer to the $500,000. Whether we accept the $500,000, who knows? Councilmembers Wilson and May agreed. Councilmember Wilson stated outside of those we mentioned, we all agree we do not want to cut park and rec programs. Do we want staff to bring back a revised document with the elimination ofthe Administrative Services Director and the elimination ofthe Economic Development Specialist. Staff should give us what is most critical from this list. Councilmember Donnelly would also like to see the DOT, and what that does for the City. City Administrator Herlofsky stated he will place something on the October 4, agenda so Council can make a decision. Council will make a staff decision and he would recommend they take action at the October 4, Council meeting. Then it will be done, and a few other things will need to take place before the end ofthe year. He would like to say Council will discuss staffmg for 2011 and let Council make the motion on whatever they decide. Finance Director Walters asked about any changes to the revenue. Councilmember May stated look at reducing the interest income number. Councilmember Wilson has asked staffabout the permits and he is cautiously comfortable with the permit number, but not comfortable with the interest revenue. MOTION by Wilson, second by Fogarty to adjourn at 7:04 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 28 7b City of Farmington 430 Third Street I:arlllington, Minnesota 651.280.6800. Fax 651.280.6899 ww'w.ci.tl1nllillgton. nl1l.LL~ TO: Mayor, Council members, and City Administrator FROM: Lena Larson, Municipal Services Coordinator SUBJECT: Adopt Resolution Accepting Donation for the Pollution Prevention Day program- Municipal Services Department DATE: October 4,2010 INTRODUCTION & DISCUSSION The City has received a donation for the Pollution Prevention Day program from Dick's SanitationlLakeville Sanitary, Inc. (DSI/LSI), a business located in Lakeville, Minnesota. Paced with a very soggy Pollution Prevention Day at Rambling River Park on Friday, September 17, DSI/LSI generously donated 15 tarps of various sizes. The tarps allowed the more than 500 fourth grade students attending the event to have dry seating during their educational sessions. The value of the tarps is $265.00. Staff will communicate the City's appreciation on behalf of the Council to DSI/LSI for their support of the Pollution Prevention Day program. ACTION REOUESTED Approve the attached resolution accepting the donation from DSI/LSI. Respectfully Submitted, Lena Larson Municipal Services Coordinator 29 RESOLUTION No. R54-10 ACCEPTING DONATION FROM DICK'S SANIT ATION/LAKEVILLE SANITARY, INC. FOR POLLUTION PREVENTION DAY Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota, was held in the Council Chambers of said City on the 4th day of October, 2010 at 7:00 p.m. Members Present: Members Absent: Larson, Donnelly, Fogarty, May, Wilson None Member Wilson introduced and Member May seconded the following: WHEREAS, Dick's SanitationlLakeville Sanitary, Inc. (DSI/LSI) has donated 15 tarps valued at $265 to be used for the Pollution Prevention Day program. WHEREAS, it is in the City's best interest to accept such donations. NOW, THEREFORE, BE IT RESOLVED that the City of Farmington accepts the donation of 15 tarps valued at $265 from DSI/LSI to be used for the Pollution Prevention Day program. This resolution adopted by recorded vote of the Farmington City Council in open session on the 4th day of October, 2010. ~~- - Mayor day of October, 201O.,//~ Attested to the) -I-h SEAL - --- ----- -- ----- -- ------ -.. -- -- 7c. City of Farmington 430 Third Street .;armington, Minnesota 651.463.7111 . Fax 651.463.2591 ww\\':cj.tilnniT1gt4m_nm_LL~ TO: Mayor, Council Members, City Administrator FROM: Lisa Shadick, Administrative Services Director SUBJECT: Gambling Event Permit - Fire Fighters Relief Association DATE: October 4,2010 INTRODUCTION The Fire Fighters Relief Association is requesting a Gambling Event Permit for their Turkey Bingo event at the Farmington Fire Station, 21625 Denmark Avenue, on November 13,2010. DISCUSSION Per State Statute 349.166 and pertinent City Code, a Gambling Event Permit must be issued by the City for this type of event. An application for the permit has been received and reviewed. The Fire Fighters Relief Association is requesting that the permit related fees be waived by the City Council. BUDGET IMPACT None. ACTION REOUESTED Consider the attached Resolution granting a Gambling Event Permit and waiving the fees for the Fire Fighters Relief Association at 21625 Denmark Avenue, for Turkey Bingo on November 13, 2010. Respectfully submitted, Lisa Shadick, CMC Administrative Services Director 31 RESOLUTION NO. R55-10 APPROVING A MINNESOTA LAWFUL GAMBLING EVENT PERMIT APPLICATION FOR FARMINGTON FIRE DEPARTMENT Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota, was held in the Council Chambers of said City on the 4th day of October 2010 at 7:00 p.m. Members Present: Members Absent: Larson, Donnelly, Fogarty, May, Wilson None Member Wilson introduced and Member May seconded the following: WHEREAS, pursuant to M.S. 349.166, the State of Minnesota Gambling Board may not issue or renew a Gambling Event Permit unless the City Council adopts a Resolution approving said permit; and, WHEREAS, the Farmington Fire Relief Association submitted an application for a Gambling Event Permit for Turkey Bingo to be conducted at the 21625 Denmark Avenue, for Council consideration. NOW, THEREFORE, BE IT RESOLVED by the Farmington City Council that the Gambling Event Permit for the Farmington Fire Relief Association to be conducted at 21625 Denmark Avenue, is hereby approved. This resolution adopted by recorded vote of the Farmington City Council in open session on the 4th day of October 2010. 7~~ N.1:ayor Attested to the )--1'" day of October 2010. SEAL 7d City of Farmington 430 Third Street farmington, .l\.1inncsota 651.280.6800. Fax 651.280.6899 www.ci.tarmington.nm.Ll... TO: Mayor, Councilmembers, City Administrator FROM: Lisa Shadick, Administrative Services Director SUBJECT: Adopt Resolution - Appointing 2010 State General Election Judges DATE: October 4,2010 DISCUSSION The 2010 State General Election is Tuesday, November 2,2010. Per State Statute 204B.21,subd. 2, election judges must be appointed at least 25 days before the election. The attached resolution appoints judges for all Precincts 1 through 6 for the 2010 General Election. BUDGET IMPACT Election costs are included in the 2010 budget. ACTION REQUIRED Adopt the attached resolution appointing election judges for the State General Election on November 2, 2010. Respectfully submitted, Lisa Shadick, CMC Administrative Services Director 33 RESOLUTION NO. R56-10 APPOINTING ELECTION JUDGES AND DESIGNATING POLLING PLACES FOR THE NOVEMBER 2,2010 STATE GENERAL ELECTION Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota, was held in the Council Chambers of said City the 4th day of October, 2010 at 7:00 p.m. Members present: Members absent: Larson, Donnelly, Fogarty, May, Wilson None Member Wilson introduced and Member May seconded the following resolution: WHEREAS, pursuant to Section 2048.21 of the Minnesota Election Laws, election judges shall be appointed by the governing body of the municipality at least 25 days before the election at which the election judges will serve; and WHEREAS, election judges shall receive at least the prevailing Minnesota minimum wage for each hour spent carrying out duties at the polling place and attending training sessions. NOW THEREFORE, BE IT RESOLVED that the individuals listed in this resolution are appointed to serve in the City of Farmington as election judges for the 2010 State General Election at the hourly rate of $8.00 for election judges and $9.00 for head judges; and will serve at the following designated polling locations: Precinct 1 - Rambling River Center, 325 Oak Street Precinct 2 - Instructional Services Center, 510 Walnut Street Precinct 3 - Meadowview Elementary School, 6100 195th Street West Precinct 4 - Akin Road Elementary School, 5231 195th Street West Precinct 5 - Bible Baptist Church, 19700 Akin Road Precinct 6 - Levi P. Dodge Middle School, 4200 208th Street West 2010 G lEI J d enera ectlOn u 1ges Allen Patrin Erwin Hagen Kimberly Lomas Pat Thurmes Ann Jensen Georgene Herlofsky Larry Hempler Pat White Bev Preece Georgia Freetly Lauretta Schneider Patricia Bohm Blanche Reichert. Gretchen Bergman Lee Benz Patrick Hansen Bonnie Andrusick Hazel Truax Lisa Benson Peggy Reiman Brenda Ellis-Reedy Helen Hagen Lois Lotze Richard Cornair Carol Klotter Janet Carpentier Lori Pilla Ron Miles Carole Hansen Janet Thompson Lynn Nordine Ronald Kuck Charles Freundl Jeanne Stanek Marilyn Emond Rosemary Benz Charles Weber Judith Kuck Marlene Beeney Sarah Miller Cindy Waldt Karen Kellington Mary Jo Bell Sherred Cordes Darlene Grabowski Karen Pietsch Michelle Hinze Sue Perro David Stanek Kathleen Tverberg Nancy Bjerke Thomas Welter Dennis Sullivan Kathryn Akin Pamela Wickham Todd Carey Doris Dahl Kim Demo Pat Hennen Robert Italiano Jessica Gunderson Lisa Gorman Estelle Feffer Helen Blaylock BE IT FURTHER RESOLVED that the City Clerk, or City Clerk's designee, is authorized to appoint additional election judges as needed to conduct the 2010 State General Election. This resolution adopted by recorded vote of the Farmington City Council in open session on the 4th day of October, 2010. ~~f Mayor SEAL Attested to this 7-1-~ day of October, 2010. 7e- City of Farmington 430 Third Street l'"armington, Minnesota 651.280.6800. Fax 651.280.6899 www:ci.flIrmiTlgtlm.TIl11.LL'l TO: Mayor, Councilmembers, City Administrator FROM: Kevin Schorzman, P.E., City Engineer SUBJECT: Declare Default-Swanson Acres DATE: October 4,2010 INTRODUCTION The City and Double E Development, LLC entered into a development contract for Swanson Acres on June 19,2006. DISCUSSION To secure the development contract, New Market Bank issued irrevocable letter of credit (LOC) No. 1123 in the amount of$308,061. As work on the development was completed, the LOC was reduced, and the current value of the LOC is $31,000. All required public utilities were required to be installed by November 30, 2007. As of this date, the majority of the work has been completed, but a few work order items remain. In August of this year, the City of Farmington was named as a defendant in a lawsuit between New Market Bank and Double E Development. New Market Bank is attempting to foreclose on the development and eliminate any ties to the development contract between the City and Double E Development. If this occurs, the City will not have any development contract with the bank that forecloses on the property, nor will the City have any security to use to complete the development. The work order items that remain are: 1. Submit record plans 2. Install Natural Area signs 3. Expose an existing manhole and straighten the marker post 4. Clean out a storm sewer pipe Other outstanding issues related to the development contract: 1. Deed Outlot A to the City of Farmington 2. Pay outstanding city engineering bills currently in the amount of$16,611 In an effort to complete the work order items on the project this year, to recover outstanding engineering bills, and to ensure that the City is in a position to acquire the necessary outlots and easements as described in the development contract, staff is recommending that the City Council formally declare the development in default and authorize staff to collect the $31,000 that is secured by the letter of credit. 36 Swanson Acres Default October 4,2010 Page 2 of2 BUDGET IMPACT None. ACTION REOUESTED By motion, declare the Swanson Acres development in default, and authorize staff to draw down New Market Bank Irrevocable Letter of Credit No. 1123 in its entirety. Respectfully Submitted, Kevin Schorzman, P .E., City Engineer 37 7+ City of Farmington 430 Third Street hl.rmington, Minnesota 651.280.6800. Fax 651.280.6899 www.ci.tanningtI111.n11l_Ll:; TO: Mayor, Councilmembers and City Administrator FROM: Lisa Shadick, Administrative Services Director SUBJECT: Approve Tobacco License - Super America DATE: October 4,2010 INTRODUCTIONillISCUSSION Per City Ordinance 3-7-3 the City Council has the authority to approve tobacco licenses. Super America, located at 18520 Pilot Knob Road, has submitted an application for a tobacco license. The required fees have been received and the application has been reviewed by the Farmington Police Department. BUDGET IMPACT The fees collected are included in the revenue estimates of the 2010 budget. ACTION REOUESTED Approve a tobacco license for Super America. Respectfully submitted, Lisa Shadick, CMC Administrative Services Director 38 ?3 City of Farmington 430 Third Street Farmington, Minnesota 651.280_6800. Fax 651.280.6899 www.ci.tarmingtlll1_TI11l_LL.i TO: Mayor, Councilmembers and City Administrator FROM: Missie Kohlbeck, Senior Center Coordinator SUBJECT: Adopt Resolution Accepting Donation to the Rambling River Center DATE: October 4,2010 INTRODUCTION A donation has recently been received from the Farmington Sons of the American Legion. DISCUSSION The Sons ofthe American Legion held an omelet breakfast fundraiser in early September for the Rambling River Center's Construction Project. As a result of this fundraiser, the Sons of the American Legion has graciously donated $1,000 to the Rambling River Center's Construction Project. Staffwill communicate the City's appreciation on behalf of the Council to the Sons of the American Legion for their generous donation. ACTION REOUESTED Adopt the attached resolution accepting the donation of$I,OOO from the Sons of the American Legion to the Rambling River Center Construction Project. Respectfully Submitted, Missie Kohlbeck Senior Center Coordinator 39 RESOLUTION NO. R57-10 ACCEPT $1,000 DONATION FROM THE SONS OF THE AMERICAN LEGION TO THE RAMBLING RIVER CENTER Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota, was held in the Council Chambers of said City on the 4th day of October, 2010 at 7:00 p.m. Members Present: Larson, Donnelly, Fogarty, May, Wilson Members Absent: None Member Wilson introduced and Member May seconded the following: WHEREAS, a donation of$I,OOO was received from the Sons of the American Legion from an omelet breakfast fundraiser for the Rambling River Center Construction Project, WHEREAS, it is required by State Statute that such donations be formally accepted; and, WHEREAS, it is in the best interest of the City to accept these donations. NOW, THEREFORE, BE IT RESOLVED that the City of Farmington hereby accepts with gratitude the generous donation totaling $1,000 from the Sons of the American Legion to the Rambling River Center Construction Project. This resolution adopted by recorded vote of the Farmington City Council in open session on the 4th day of October, 2010. Z~~-- Mayor SEAL Attestedtothe 7-fi? day of October 2010. /~ City of Farmington 430 Third Street "'a.rmington, l\.1inncsota 651.280.6800. Fax 651.280.6899 www.ci.timniTll:.>tlm.TIlu.L1..; TO: Mayor, Councilmembers, and City Administrator FROM: Lisa Shadick, Administrative Services Director SUBJECT: Temporary On-Sale Liquor License - Knights of Columbus #2400 DATE: October 4,2010 INTRODUCTION The Knights of Columbus #2400 is requesting a Temporary on-sale Liquor License for an event to be held November 20,2010 at St. Michael's Church. DISCUSSION This event will be held on St. Michael's property located at 22120 Denmark Ave. Per State Statute, a Temporary Liquor license must first be approved by the City and then forwarded to the State for approval. BUDGET IMPACT The State of Minnesota waives all fees for Temporary Liquor Licenses for non-profit organizations. Therefore, a City fee has not been established for a Temporary On-Sale Liquor License at this time. ACTION REOUESTED Approve the attached application for a Temporary Liquor License for the Knights of Columbus #2400 on November 20,2010. Respectfully submitted, Lisa Shadick, CMC Administrative Services Director 41 Minnesota Depiuiril~nt of Public SafetY ALCOHOL AND GAMBLING ENFORCEMENT DMSION 4.44 Cedar Street Suite 222, St.Paul MN 55101-5133 (651) 201-7501 Fax (651) 297-5259TIY (651) 282-655~ WWW.DPS.STATE.MN.US APPLICATION AND PERMIT FORA 1 T04DAYTEMPORARYON~SALBLIQVOltLICBNSE mE ORPRlNT INFORMATION N~ OF ORGANIZATION (...:s DRESS DA'rEORGANIZED TYPE OF ORGANIZA'IJON B g, ADDRESS. ()~~g I c.. r-<fl sS - f'o.-rw.v{ ~ ADDRESS LLS CITY FO-rm j' BUSINESS ( ) ORGANIZATION OFFICER'S NAME ADDRESS Looation license will be used. If an outdoOl~ area, describe s~. 1M Lt..k ~.tl/S C. t:t:fh t'JI;c C. (/A.rc. to.. ;)rL/~C 1AV\.~r/( Av~ - FCA.rn--./~_~ Will the applicant contl'apt for Intoxicmlng liquor service? Ifso, give'< the \1liineaiid address of the llquorllcensee providii:1gthe service. /1 () Will the applicant carry liquor liability InsUl'artee'1 If so, please provide thecm;rlel"s name and amo\Ul.t of coverage. - A'PPROV AL APPLICATION MUST BE APPROVED BY CITY OR COlJN'I1l BEFORE SUBMiTTING TO ALCOHOL &- GAMBLING- - - . - - :mNFORCEMENT . . CITY/COtJ.N'l'Y DATE APPROVED- CITY FEE AMOUNT LICBNSEDATES DATEFEHPAID SIGNATORE ClTYCLJ!;lU{OR CPlJNTV OFFICIAL APPROVED DIRECTOR ALCOHOL ANi> GAMBLING ENFORCEl\'JENT NOTE: Subinifthis ~Ol'in f() the cIty or county 30 days prlol.t() event. 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Fax 651.463.2591 www.ci.tanningtlll1.nlll.LL..i TO: Mayor, Councilmembers, City Administrator FROM: Lisa Shadick, Administrative Service Director SUBJECT: Approve On-Sale Wine License - The Ugly Mug DATE: October 4,2010 INTRODUCTION Pursuant to City Ordinance 3-12-6-2, a public hearing must be held to establish an On-Sale Wine License. DISCUSSION D & K Properties of Rosemount has submitted an application for an On-Sale Wine License for The Ugly Mug, located at 18450 Pilot Knob Road. The required fees and insurance information have been received and the application has been reviewed by the Farmington Police Department. BUDGET IMPACT The fees collected are included in the revenue estimates of the 2010 Budget. ACTION REOUlRED Approve an On-Sale Wine License for The Ugly Mug Respectfully submitted, Lisa A. Shadick, CMC Administrative Services Director 65 ?J'b City of Farmington 430 Third Street, Farmington, MN 55024 (651) 280-6800 Fax (651) 280-6899 www.ci.farmington.mn.us TO: Mayor, Councilmembers, City Administrator FROM: Kevin Schorzman, P.E., City Engineer SUBJECT: 2010 Seal Coat Project Assessment Hearing DATE: October 4,2010 INTRODUCTION The City Council ordered the 2010 Seal Coat project at the March 15, 2010 City Council meeting. DISCUSSION The 2010 Seal Coat project is complete. The streets indicated in Attachment A of the resolution were included in the seal coat program this year. The streets in Parkview Ponds, Mattson Farms, Swanson Acres, Hometown Addition, Farmington Business Park, Executive Estates and Spruce Street west of Denmark Avenue are to be seal coated for the first time this year. The streets of Cameron Woods, Hilldee Addition, Nelsen HilIs 7th Addition, Charleswood 2nd Addition, East Farmington 6th Addition, Chateau Manor, Centennial Drive between Sunnyside Drive and Heritage Way, Centennial Circle, Akin Road/190th Street between 195th Street and Pilot Knob, 3rd Street between Elm Street and Spruce Street, Oak Street between 2nd Street and 4th Street, and the municipal pool parking lot are also scheduled to be seal coated this year. All affected property owners have been notified as to the date and time ofthis public hearing and that fmal assessments may be adopted at the public hearing pursuant to M.S. 429. BUDGET IMPACT The total project cost for the 2010 Seal Coat project is $222,938. The proposed assessment amount for the 2010 Seal Coat project is $108.44 per residential equivalent unit (REV). The original estimate of the cost per REV was $136.65. Several streets in the project area have already been assessed for seal coating costs through their respective development contracts. The assessment amount of$31.75 per REU for the properties in the Sunnyside/Chateau Manor area is a result of the Bonestroo contribution of $12,500 which resulted in a credit of $76.69 per REU. The City's portion of the project cost will be funded through the Road and Bridge fund. 66 2010 Seal Coat Assessment Hearing October 4, 2010 Page 2 ACTION REOUESTED Adopt the attached resolution adopting the assessment roll for the 2010 Seal Coat project. Respectfully Submitted, Kevin Schorzman, P .E. City Engineer cc: file 67 ---- -- - - - - - -- - - -- - --- ---- -- - -- RESOLUTION NO. R58-10 ADOPTING ASSESSMENT ROLL FOR 2010 SEAL COAT Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota, was held in the Council Chambers of said City on the 4th day of October 4,2010 at 7:00 p.m. Members present: Members absent: Larson, Donnelly, Fogarty, May, Wilson None Member Fogarty introduced and Member Wilson seconded the following resolution: WHEREAS, pursuant to proper notice duly given by the Council, the Council has met and heard and passed upon all objections to the proposed assessments for the following improvement: Proiect No. 10-01 Descrivtion Location Street Seal Coat - Oil and Aggregates See Attachment A NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF FARMINGTON, MINNESOTA: 1. Such proposed assessment, a copy of which is on file in the office of the City Clerk, is hereby adopted and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 2. Such assessment shall be payable in one installment to be payable on or before the first Monday in January, 2011 and shall bear interest at the rate of 5.25% per annum from the date of the adoption of this assessment resolution until December 31, 2011. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City Treasurer, except that no interest shall be charged if the entire assessment is paid within 30 days from the adoption of this resolution; and s/he may, at any time thereafter, pay to the City Treasurer the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 4th, 2010 or interest will be charged through December 31 of the next succeeding year. 4. The Clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be extended on the property tax lists of the County. Such assessments shall be collected and paid in the same manner as the other municipal taxes. . -- ---- -- -- -- ----- - - ----- - -- -------------- - --- This resolution adopted by recorded vote of the Farmington City Council in open session on the 4th day of October, 2010. -~~~ Mayor Attested to the "7 -rJl day of October, 2010. SEAL Attachment A Streets Cameron Woods Euclid Street Hilldee Addition Lower 182nd Street (E) Lower 182nd Street (W) Upper 182nd Street Fa9ade Avenue Exley Avenue Euclid Street Euclid Avenue Nelsen Hills 1h Addition I 88th Street West Exclusive Path 189th Street Excalibur Trail Akin Roadl19dh Street Charleswood Y'd Addition Evensong Avenue EverhiIl Avenue Everest Path Exchange Trail Executive Path Evergreen Trail Parkview Ponds Embers Avenue Dover Drive Dover Court 198th Street 198th Circle Mattson Farms Akin Court Swanson Acres Akin Circle Location North phase line to south phase line Pilot Knob to west end of cul-de-sac Fa9ade Avenue to Upper 182nd Street Fa9ade Avenue to Pilot Knob All Upper 182nd Street to south phase line Upper 182nd Street to south phase line Lower 182nd Street to Upper 182nd Street East phase line to west phase line East phase line to I 88th Street West East phase line to west phase line East phase line to 189th Street West 19Sth Street to Pilot Knob North phase line to south phase line West phase line to Everest Path North phase line to Evensong Avenue North phase line to Everhill Avenue Everhill Avenue to south phase line Everhill Avenue to south phase line 19Sth Street to Diamond Path North phase to south phase line All Embers A venue to Diamond Path All All All Streets Original Down Town 3 rd Street Oak Street Vermillion River Crossing Spruce Street Hometown Addition Catalina Way Cannon Road Capri Street Carver Street Chateau Manor/Sunnyside Addition Park Drive Fairview Circle Fairview Lane Heritage Way Lower Heritage Way 6th Street Centennial Circle Centennial Drive East Farmington 6h Addition 12th Street 13th Street 14th Street Locust Street Larch Street Farmington Business Park Canton Court Canton Circle Executive Estates Carver Lane Cambrian way 223rd Street 224th Street Carina Court Cantrel Way Canova Court Location Elm Street to Spruce Street 2nd Street to 4th Street West phase line to Denmark Avenue All All All All All All Heritage Way to Park Drive All All Heritage Way to south phase line of Chateau Manor 2nd All Sunnyside Drive to Heritage way WaInut Street to Larch Street Walnut Street to Larch Street Walnut Street to Larch Street West phase line to 14th Street West phase line to 14th Street All All 224th Street west to north phase line All Cambrian Way to west phase line All All All All Streets Calico Court Calhoun Court Location All All Miscellaneous Municipal Pool Parking Lot All /d~ City of Farmington 430 Third Street l;armington, Minnesota 651.280.6800. Fax 651.280.6899 www.ci.f1lnninb7j:ol1.nm.LL'i TO: Mayor and Councilmembers FROM: Peter J. Herlofsky, Jr. City Administrator SUBJECT: Authorize Elimination of Positions for 2011 DATE: October 4, 2010 INTRODUCTION I DISCUSSION At the Council workshop on September 27, 2010, a discussion took place regarding the elimination of two positions in the 2011 budget. The positions that were to be considered were the Administrative Services Director and the Economic Development Specialist. Both of these positions report directly to me. At the workshop I chose to recommend to the Council that they retain those positions in 2011. For additional information, I am going to include the following data: 1. Listing of responsibilities for the Administrative Services Director 2. Job description of the Economic Development Specialist 3. Major Economic Development Activities for May, June, September 2010 BUDGET IMPACT Salaries and benefits: Position Sal IFICNPERA Benefits Administrative Services Director $116,960 $11,088 Economic Development S ecialist $74,756 $12,193 Unem 10 ent Bud et Reduction $97,628 $56,529 Expenses relating to unemployment would be approximately $2,535/month for each individual. ACTION REOUESTED In order to move forward, it was decided at the workshop to take action at the October 4,2010, Council meeting. The motion the Council wanted is as follows: Cmuller/Herlofsky/Council memos/2011 Positions 73 - -- ----~---_. ----- -- -- - In considering the 2011 budget, the City Council has determined that the following positions will not be funded: Respectfully submitted, Peter J. Herlofsky, Jr. City Administrator 74 City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn.us TO: Peter Herlofsky FROM: Lisa Shadick, Administrative Services Director SUBJECT: Administrative Services Director Position Detail DATE: 9/14/2010 On September 8, 2010, you requested a detailed list of my job duties. Attached is the information requested. I believe I have covered everything to the best of my ability. Please note that there are requests made of me occasionally to complete for the City that may not be on this list as a regular part of my job. Respectfully Submitted, $~t/~ Lisa Shadick 75 Administrative Services Director Responsibilities: Elections -Attend County and State meetings and trainings. -Secure polling 10caUons -Recruit, train and schedule 90+ elecUon judges to polling 10caUons. -Train City staH on elecUons. -Coordinate and manage all Absentee voting procedures. -Ensure that all required noUces are posted and published per the state statutes. -Secure all equipment and supplies needed for each polling 10caUon. Including proofing and securing ballots. -Test all voUng equipment for accuracy. -Maintain voter confidentiality. -Administer off site absentee voting for health care facilities. -Responsible for processing candidates affidavit of filing. - Work with candidates, answer questions, and ensure reporting requirements are met by candidates. ' -Interpret statutes to ensure fair campaign practices. -Ensure legal compliance of all election procedures up to and including Election Day. -Coordinate canvassing of election results, send results to the County and issue certificates of election to elected officials. -Serve as contact to residents and media regarding election questions and information. Acting City Administrator - Serve as point of contact for Council and all staH in the absence of Administrator. -Sign documents as necessary. -Read, review and approve all minutes and agenda items in the absence of the Administrator. -Attend various meetings in the absence of the administrator including but not llmited to: Council meetings, Dakota County Managers Meetings, MVTA Meetings, Cedar Group, School District Meetings and EDA Meetings -Respond to citizen requests/concerns. -Review, respond and forward all emaJl or other inquiries of the City Administrator in his absence. -Responsible for all City Administrator activities in the absence of the Administrator. Communications -Responsible for approval of information for all website content and in communications pieces both internal and external. -Send Nixle/Twitter messages. - Write annual Mayor's State of the City Address (SOCA). -Prool, edit and write articles for various communication pieces. (City Space, Newsletter, press Releases, etc.) Cable Communications -Serve as staff liaison for the Apple Valley Farmington Rosemount Cable Commission on behaU of Farmington. -Attend all cable commission meetings for Farmington. -Develop Cable budget. - Work closely with Cable coordinator and cable staff on programming issues both live and in playbacks. 76 -Update and monitor community bulletin board messages. -Approve purchases as appropriate. -Ensure that appropriate franchise fees and PEG fees are received and utilized appropriately per FCC guidelines. -Interpret Franchise agreement. -Report to the City Council as necessary on cable issues. -Responsible for AV equipment in Council Chambers and train staH. -Monitor AV performance and take care of any maintenance items. -Assist Cable Coordinator in video productions such as City Hall video, SOCA, oU site tapings and other video projects. -Perform performance evaluation of Cable Coordinator. Administration and Staff Management -Supervise, schedule, train, coordinate work and resolve conf1Jcts for administrative and communications staH. -Conduct performance evaluations. -Respond to citizen requests/concerns. -Responsible for record retention. -Review and recommend various fees and service charges for council approval. -Approve all bills for administration and cable commission. - Work with various vendors regarding contracts on equipment (i.e. copiers). -Respond to Council requests and inquiries. -Prepare and present agenda items to City Council. -Track Letters of Credit for developments and ensure initial fees are paid for development contracts. -Responsible for replacement, ordering, programming of all Nextel phones. Monitor billing to ensure that accurate rates are achieved and monitor appropriate usage. -Prepare and monitor Administration, Legislative, Elections, Communications and HPC Budgets. -Responsible for coordination with the Council all City Boards and Commissions recruitment/selection process. -Responsible for various RFP or Bid Processes. (City Survey, mailing, cleaning services, etc) -Oversee the on-line At- Your-Service citizen request program and ensure that requests are processed and follow-up surveys are sent - Work with City Administrator and Management Team on a variety of City issues as needed. City Hall -Coordinate projects with Facilities Supervisor for the City Hall Building, (cleaning, painting, and repairs.) -Serve as City contact with architects and contractors on the City HaJJ project top ensure completion of work. -City hall contact for all vendors/service providers for the City Hall building including cleaning company and resolve any issues. Heritage Preservation Commission - Work closely with consultant regarding all HPC projects. -Process CLG grants for HPC projects, process monthly reports to the State and ensure grant reimbursement. -Manage consultant contract. -Schedule and attend all meetings and prepare HPC agendas, minute and perform follow-up. 77 - - - --.----------- - - - ----- ~ -Present projects and findings to the City Council for approval. -Coordinate preservation month activities. -Conduct research as necessary. -Respond to requests/inquiries from property owners and residents regarding historic properties and preservation. Licenses and Permits -Responsible for determining type of license and issuance of all liquor and gambling licenses in accordance with State law. -Respond to applicant questions and inquiries. - Work closely with the Police Department and State Alcohol and Gambling Enforcement Division of the Department of Public Safety regarding licenses and compliance. -Set appropriate license fees. -Ensure all paperwork is completed, fees are paid and present to Council for approval any new license requests and renewals. -Sign all licenses and ensure that applicant is issued a copy and information is sent to the Sate as required. -Oversee issuance, determine type of license and sign all Peddlers, Solicitors and Transient Merchant permits. Liquor Operations -Supervise Liquor Operations Manager. -Keep abreast of all liquor operations through daily communication with the Liquor operations Manager. -Review and analyze monthly sales data and give explanations to Council as needed for any discrepancies. -Review sales promotion ideas. -Assist at special events such as the RRD Wine tasting in the Park. - Work with Liquor Operations Manager on rental agreements to lower costs. -Advise and assist Liquor Operations Manager on staH supervision and conflicts. Boards and Commissions -DCC Alternate -HPC - Staff Liaison -Community EXPO - Attend all EXPO meetings on behalf of the City and coordinate activities of all city departments involved with the annual Community EXPO. -CEEF- City Representative -Apple Valley, Farmington, Rosemount Cable Commission (AFRCC) Committees (Internal) -Safety Committee -Development Committee -Customer Service Team (Chairperson) 78 CITY OF FARMINGTON, MN CLASS SPECIFICATION CLASS SPECIFICATION TITLE: Economic Development Specialist BAND c CLASS SUMMARY: This class is responsible for assisting the Community Development Director with economic development and re-development activities including providing support and assistance to businesses, researching and developing proposals and maintains an inventory of industrial, commercial, and service businesses in the city. GRADE 4 SUB GRADE I FLSA STATUS: Exempt TYPICAL CLASS ESSENTIAL DUTIES: (These duties are a FREw BANDI representative sample; position assignments may vary.) OUENCY GRADE 1. Assist with the implementation of various economic development W C4 programs with the purpose of business retention, expansion, and attraction. 2. Under the direction of the Community Development Director, W C4 develop and implement the City's marketing plan including the creation and distribution of various promotional materials. 3. Assist in coordinating and reviewing of business development W B2 projects through City building and zoning review process. 4. Assist with the coordination and implementation of the Community M B2 Development Block Grant program. 6. Respond to inquiries regarding business opportunities and provides D C4 information to prospective businesses regarding available land, City incentive programs, zoning regulations, taxes and other information as requested. Follow up with all inquiries. 6. Prepare packet materials for presentation to the HRA and City M B2 council. Assists in the preparation of staff reports and agendas. 7. Assist in the development of long range plans and action plans for 0 82 economic development and coordinates activites to implement the plan. 8. Develop and maintain a comprehensive database of the inventory of W B2 available buildings and sites in the community for economic development purposes. 9. Assist the Community Development and Finance Directors with the M B2 administration of the City's Tax Increment Finance (TIP) program and districts, and with other business incentive programs. 79 --- ---- ---------- ------- ~ CITY OF FARMINGTON, MN CLASS SPECIFICATION CLASS SPECIFICATION TITLE: Economic Development Specialist 10. Gather, interpret, and prepare data for studies, reports and recommendations; and coordinate activities with other departments, agencies, local groups and others as needed. D B3 11. Perform other duties of a similar nature or level. As Required NIB POSITION SPECIFIC RESPONSIBILITIES MIGHT INCLUDE: Positions assigned to economic development may be responsible for: Develop and implement economic development programs for the City with the purpose of business retention, expansion, and attraction; provide and maintain GIS maps; customer service; prepare and present staff reports; filing of records; and maintaining inventories of industrial and commercial sites, vacant parcels and other facilities. Training and Experience (positions in this class typically require): Bachelor's degree in community development, urban studies or a related field and 1 year of related economic development or planning experience (Master's preferred); excellent interpersonal communication skills; or, an equivalent combination of education and experience sufficient to successfully perform the duties listed above. Knowledge (position requirements at entry): Knowledge of: · General principles of planning and development in municipal government. . General principles of marketing. · Basic knowledge of tax increment financing and TIF district administration. · City functions and geography Sldlls (position requirements at entry): Skill in: · Computer skills (Microsoft Office Suite) . GIS · Researching data and presenting findings in an understandable format. · Public speaking · Comm:unication, interpersonal skills as applied to interaction with coworkers, supervisor, the general public, etc. sufficient to exchange or convey information and to receive work direction. · Ability to handle multiple priorities and maintain confidentiality. . Ability to handle stress and/or stressful situations. 2 80 CITY OF FARMINGTON, MN CLASS SPECIFICllTION CLASS SPECIFICllTION TITLE: Economic Development Specialist Physical Requirements: Positions in this class typically require: climbing, balancing, stooping, kneeling, crouching, crawling, reaching, standing, walking, pushing, pulling, lifting, fingering, grasping, feeling, talking, hearing, seeing and repetitive motions. . Sedentary Work: Exerting up to 10 pounds of force occasionally and! or a negligible amount of force frequently or constantly to lift, carry, push, pull or otherwise move objects, including the human body. Sedentary work involves sitting most of the time. Jobs are sedentary if walking and standing are required only occasionally and all other sedentary criteria are met. Incumbents may be subjected to moving mechanical parts, electrical currents, vibrations, fumes, odors, dusts, gases, poor ventilation, chemicaJs, oils, extreme temperatures, inadequate lighting, work space restrictions, intense noises and travel. NOTE: The above job description is intended to represent only the key areas of responsibilities; specific position assignments will vary depending on the business needs of the department. Classification History: Draft prepared by City of Farmington Date: 1/2005 3 81 Major Economic Development Activities May 2010 Prepared By: Tina Hansmeier Blondie's Tavern The City Council approved Blondie's liquor license at their May 17th meeting. Menu development is in the works, sheet rock is up and their sign permit application has been approved and issued. Celts Pub Celts' completed their interior facelift and re-opened to the public as planned on May 3rd. Their sign permit was issued and the building and monument signage has been installed. The owner, Brandon Barth has indicated he is hoping to host a Grand OpeninglRibbon Cutting later next month after Celts has had some time to get up and running. City Center Update Parking lot repairs were made the week of May 17th. The parking lot area just south of the strip mall will be replaced with an outdoor patio. Mr. Wartman (owner) has indicated the patio will be used for outdoor seating for a future tenant. No specifics have been provided regarding the tenant that may occupy this space, other than an individual has expressed an interest in opening a diner/deli in the building space formerly occupied by Vart Hem Cafe. · Rising Stars Preschool Laura Mitchell has received a Conditional Use Permit to operate a commercial child daycare in the B-2 Zoning District. The daycare will occupy approximately 1,900 square feet in the City Center strip mall and cater to children ages 31 months to 5 years. Meadow Creek Lots and Cul-de-sac The developer of this subdivision contacted the Engineering Department to inform the City he has sold all remaining lots within the Meadow Creek development. According to City records there are 32 lots within the Fourth Addition and 2 lots within the Third Addition. The developer indicated that 23 of these lots were sold to Ryland, and the remaining lots were sold to Bill Ryan (OBI Homes and Charles Merritt) and Kurt Manley. The Dunbury Knoll cul-de-sac is currently being completed which must be done to provide access to five of the 32 remaining lots. Northern Concepts "Complete Mailing Solutions" Matthew Bollig, the owner of Northern Concepts, currently leases space at 821 3rd Street (the building just north of White Funeral Homes). Mr. Bollig has expressed to staff that he is interested in purchasing a building with his most recent interest in a property located near 3rd and Oak Streets. Northern Concepts has been in business since 1999. Pizza Man Ed Endres, owner of Pizza Man, has hired an architect to assist him with his plans to expand his building by approximately 800 square feet later this summer. Plans have been submitted to the Met Council for review and determination of SAC units. 82 River Valley Home Care River Valley's contractor has been in contact with the City Planners and Building Official regarding their plans for expansion. Construction plans are currently under review by the City's Building Official to add a second story to their property located at 916 8th Street. River Valley Home Care is one of the City's top employers, employing 196 individuals. Trinity Terrace Grand Opening and Ribbon Cutting The Terrace expanded their services earlier this year to offer Flexible Assisted Living services. A Grand Opening is scheduled for July 9-11 th with the cutting of the ribbon set for 11 :00 am on July 9th. Used Car Dealership and Repair - Oleg Vdovchenko (Hanson Motorsports) The Planning Commission approved Mr. Vdovchenko's application for a Conditional Use Permit which is needed for him to provide major auto-repair services ifhe opens a used car dealership in the Hanson Motorsports building located at 301 Pine Street. Planning has signed off on a zoning certificate for the Applicant's State Dealership License. Upcomine: Business/Community Events Hadler Family Chiropractic celebrated their 9th year in business on May 7th! Dunn Bros celebrated their 4th year anniversary on May 24th! Curves celebrated their 5th year anniversary on May 24th! MN Soybean Festival: May 20_22nd. The Downtown Business Association will host the festival's events in downtown. The schedule of events and more information can be found at www.mnsoybeanfestival.com. Dakota County Fairgrounds will host the following upcoming events: · Military Family Picnic on Saturday, May 22th which is open to all military families from 12:00pm-4:00pm · Minnesota Scottish Fair & Highland Games on Saturday May 22nd from 8:00am-5:30pm · Mopars in the Park on June 5th & 6th which is said to be the largest ALL MOP AR car show in the Midwest. 2009's event drew more than 1,000 Mopars with a record-breaking yelU' for their show cars and an even greater number of spectators. Dew Days: June 16-20th. The schedule of events can be found at www.dewdays.com. The Farmington American Legion has the following bands scheduled for the month of June: . June 5 - Hairball · June 12 - Johnny Holm Band . June 18 - Monste~s of Mock, 3 rd Supply · June 19 - Zed Leppelin, Gin Mill The Downtown Farmington Farmers' Market opens June 24th, 83 Major Economic Development Activities June 2010 Prepared By: Tina Hansmeier AI{ Performance Graphics The closing on the sale of this property took place on Tuesday, June 15th. Building plans have been submitted for review. Blondie's Tavern Blondie's is expected to open late July or early August. Employment applications can be picked up at the restaurant on Friday's from 3:00-6:00pm and Saturday's from 8:00-11:00am as of June 18th, Completed applications can be returned for review during the same times Fridays and Saturdays. Celts Pub Celts' held their ribbon cutting ceremony on Friday, June 18th at 11 am. City Center Update . Rising Stars Preschool A building permit application was submitted on June 3rd to install two (2) doors needed to separate the office and daycare uses. The plan review report is complete and ready to be issued once Ken receives the additional information necessary to release the permit. . Weng's Kitchen New Moon Buffet has closed as of June 21. Tony Weng, ofWeng's Kitchen, has entered into a five (5) year lease and plans to open by early August. LongbranchlGossips Kenny LaBeau, the owner of Longbranch and Gossips has submitted application for a Business Reinvestment Grant. This item will be brought before the EDA for review at their July EDA meeting. If approved, the grant funds will assist him with making improvements to the front exterior of both restaurants. Pizza Man Ed Endres, owner of Pizza Man, has hired an architect to assist him with his plans to expand his building by approximately 800 square feet later this summer. Plans have been submitted to State Health Department for review. 84 Riverbend Engineering and Planning staff will be meeting with Tom Wolter ofMattamy Homes on Wednesday, June 30, 2010 to discuss the possibility of completing the Riverbend development yet this year (i.e., utilities and roads). They would like to be able to build homes in there this year. This will require a Final Plat be approved through the Planning Commission and City Council. River Valley Home Care A variance application has been submitted to encroach into the front yard setback by approximately 4' in order to construct a covered entry way. The Planning Commission will review this request at their June 29th meeting. Subway An application for a Sign Permit has been submitted. The owner, don Schussler, has indicated to staff that the downtown Subway store may be closed to accommodate their planned interior remodeling on July 12 & 13. . Trinity Terrace Grand Opening and Ribbon Cutting The Terrace expanded their services earlier this year to offer Flexible Assisted Living services. A Grand Opening is scheduled for July 9th-II th with the cutting of the ribbon set for 11 :00 am on July 9th. Upcomine- Business/Communitv Events The FDBA is currently planning their Downtown Day event for July 17th from 5-9pm. The event will include a car show, live music and games. The Dakota County Fair will be held August 9-1 5th. 85 cqb Major Economic Development Activities September 20C)10 Prepared By: Tina Hansmeier Celts Celts recently remodeled their banquet room which now serves a dual purpose as a meeting space and game room. Fresh paint, decor, carpet and games (pool tables, darts and 'foosball) were Included In the remodeling of this room which was completed last Friday (9/17/10) evening. Econ@mic Gardel1ing Staff attended a free seminar on Economic Gardening presented by the Edward Lowe Foundation, a nationally recognized entrepreneurship development organization. Traditional economic development programs focus on small business development, workforce, and business attraction and recruitment. Economic gardening takes an entrepreneurial approach to job creation and focuses on helping existing growth-oriented companies (10-99 employees) become larger. Economic-gardening specialists function much like an outsourced team of experts by helping entrepreneurs identify Issues that might be hindering their growth. Chris Gibbons, Director of Business and Industry Affairs for Littleton, Colorado pioneered the concept of economic gardening in the late 1980's. His technical assistance model includes resource that assists with market research, GIS, strategy and management, and new media. Farmington Business Associati@n The Farmington Downtown Business Association voted to change their name to the Farmington Business Association at their general membership meeting on September ih. o City of Melrose Tour Staff accompanied members of the Farmington Business Association on a recent trip to the City of Melrose, Minnesota to meet their Chamber representative and Community Development Director. The business association scheduled this visit to learn more about their strategy as It relates to their mix of downtown businesses and few store front vacancies. The City of Melrose's Is located off of 1-94 with a population around 3,600. Sauk Centre Is located 9 miles away and offers additional service and shopping opportunities. The main factor In keeping their downtown buildings occupied Includes zoning regulations which limits business development to certain areas. Former Senior Center Building ~~@wned building) Mr. Otten has received a report from his environmental consultant which Indicated that the presence of significant mold throughout the carpeted areas ofthe building was observed during the Inspection of the propen.'y. His observations identified a number of building Issues that may be contributing to the mold Issue including evidence of roof deterioration due to Improper venting, potential Ice damming and water infiltration through some of the windows. Mr. Otten remains Interested In pursuing the purchase of this property despite Its current condition. On a related note, Mr. Otten has been busy working with the Minnesota Pollution Control Agency (MPCA) regarding the classification 86 of the Farmington Groundwater Plume as a Superfund site, a CERCLlS site and a Permanent list o'f Priorities site whleh has been a major factoring In delaying the sale of his 311 Oak Street property.' LC:)i1gbranch . Their Interior remodel is well underway and should be completed this week. The remodeling of the bathrooms and changes to the fa!;ade will fol/ow. McVicker lot Dr. Dungy with Immanuel Dental submitted a proposal in August to purchase the property for $1 to construct a $3,000 square foot building to expand his operations. Staff recently met with the Interested buyer and his brokers to go over staff's recommendations specific to the items In the purchase offer that could be agreed to and which ones needed to be further negotiated. The draft Contract for Private Development will be revised and provided to his broker next week. There are a few remaining Items that need resolution before the contract could be finalized and brought before the EDA for approval. Old Liquor Store Building I Stw:lfo 305 The results of the Phase I Environmental Site Assessment (ESA) triggered the need to perform a Phase " ESA before financing can be obtained. The purpose of the Phase Ills to assess potential subsurface contamination due to the past use ofthe site and because this property Is located within the estimated boundaries ofthe groundwater contamination plume. The results of the Phase II are expected by the end of September. Addltlonal/y, a private appraisal has been completed and a copy ofthe results should be provided to staff and KW Commercial very soon. The owners held "soft" opening of Studio 305 on Saturday, September 25 and have Indicated that they will likely have their grand opening on October 9th. Pampered Pet Spa/Gr@cmlngdales Pampered Pet Is now owned and operated by Groomlngdale's. Pizza Man The property and business owner has submitted an application requesting site plan review for a proposed building addition and outdoor seating. The site plan will be reviewed at the October 12 Planning Commission meeting. Restauran'i:, downtown location ~ontact was made by an Individual exploring the possibility of purchasing a downtown property. The contact Identified a restaurant use that they would like to open In this particular building. Restr.II.1i'ant, highway ~ I@catlon Contact was made by an Individual who Inquired about what would be required to convert a vacant gas station Into a restaurant. UglV Mug The Ugly Mug has new owners. Their liquor license required to serve beer was approved at the September 20th City Council meeting. The license to serve wine will go before the City Council on October 4th. 87 Farmington Business AsSI1. October 4th, 2010 Mayor Todd Larson Councilmember Julie May Councilmember Christy Jo Fogarty Councilmember Terry Donnelly Councilmember Steve Wilson Dear Mayor Larson and members of the Farmington City Council, On behalf of the 49 member businesses of the Farmington Business Association, we are writing to express our concern regarding the proposal to eliminate the Economic Development Specialist position from the 2011 budget. Having a dedicated employee in this role provides great value to the city, the business community, and more importantly, those that potentially invest in our community. We wish to strongly recommend against eliminating this valuable resource. The monetary gain garnered by depriving the city of an economic development specialist is far outweighed by the damage itwill cause. We ask that you safeguard the future of this city by ensuring that our economic development does not falter in return for a temporary budgetary savings. It is our desire to work with the city government and staff to fulfill the city motto of "A Proud Past and a Prosperous Future." Losing focus on economic development places a major roadblock in the way of a mutually beneficial and healthy Economic Development track for the future of our own businesses, future business investment, and the city itself. Thank you for your time. Sincerely, Officers and Membership Farmington Business Association Clyde Rath, President I Troy Solis, Vice President I Andrew Cook, Secretary I Carol Severson, Treasurer 888-392-5836 PO Box 324 Farminltton MN 55024 www.FarminlttonBusinessAssociation.com