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HomeMy WebLinkAbout12.06.10 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 DECEMBER 6, 2010 7:00 P.M. CITY COUNCIL CHAMBERS 6:30 P.M. CLOSED SESSION - Labor Negotiations 1. CALL TO ORDER 7:00 P.M. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVEAGENDA 5. ANNOUNCEMENTS/COMMENDATIONS a) Toys for Town 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 fIVe minutes to address the Council during "Citizen Comment" time.) a) Response to Lacelle Cordes b) Response to Lenny Hall c) Response to Colin Garvey d) Response to Elsworth & Kay Hoeppner 7. CONSENT AGENDA a) Approve Council Minutes (11/15/10 Regular) (11/22/10 Workshop) b) October 2010 Financial Report - Finance c) Tort Liability Limits - Finance d) Adopt Resolution - Approve Application for 2011 CDBG Funding- Economic Development e) Approve Fire Fighting Service Agreement - Administration f) Approve 2011 License Renewals - Administration g) Adopt Resolution - Approve Police Sergeants Amended Contract - Human Resources Action Taken Information Received InformatiortReceived Information Received Iriformation Received Information R,eceived Approved lriformation Received Approved R63-10 Approved Approved R64-10 h) Adopt Resolution - Accept Donation Clarey's Safety Equipment - Fire Department i) Adopt Resolution - Accept Donations Rambling River Center - Parks and Recreation j) Approve Bills REGULAR AGENDA (The Council takes a separate action on each item on the Regular Agenda. If you 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.) 8. PUBLIC HEARINGS a) Approve Various 2011 License Renewals (cont'd) - Administration 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS a) Approve Change Order #3 and Final Pay Estimate 195th Street - Engineering b) Approve Change Order #2 Walnut Street Project - Engineering 11. UNFINISHED BUSINESS a) Adopt Ordinances - Approving Franchise Fees for Seal Coating- Engineering b) Adopt Resolutions - Approve 2011 Tax Levy and Budget - Finance 12. NEW BUSINESS 13. COUNCIL ROUNDTABLE Approved Approved 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. 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 DECEMBER 6, 2010 7:00 P.M. CITY COUNCIL CHAMBERS Action Taken 6:30 P.M. CLOSED SESSION - Labor Negotiations 1. CALL TO ORDER 7:00 P.M. 2. PLEDGE OF ALLEGIANCE ROLL CALL 4. APPROVEAGENDA 5. ANNOUNCEMENTS/COMMENDATIONS a) Toys for Town 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 fwe minutes to address the Council during "Citizen Comment" time.) a) Response to Lacelle Cordes b) Response to Lenny Hall c) Response to Colin Garvey d) Response to Elsworth & Kay Hoeppner Page 1 Page 2 Page 3 Page 4 7. CONSENT AGENDA a) Approve Council Minutes (11/15/10 Regular) (11/22/10 Workshop) b) October 2010 Financial Report - Finance c) Tort Liability Limits - Finance d) Adopt Resolution - Approve Application for 2011 CDBG Funding - Economic Development e) Approve Fire Fighting Service Agreement - Administration f) Approve 2011 License Renewals - Administration g) Adopt Resolution - Approve Police Sergeants Amended Contract - Human Resources Page 5 Page 6 Page 7 Page 8 Page 9 . Page 10 Page 11 h) Adopt Resolution - Accept Donation Clarey's Safety Equipment - Fire Department i) Adopt Resolution - Accept Donations Rambling River Center - Parks and Recreation j) Approve Bills Page 12 Page 13 Page 14 REGULAR AGENDA (The Council takes a separate action on each item on the Regular Agenda. If you 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.) 8. PUBLIC HEARINGS a) Approve Various 2011 License Renewals (cont'd) - Administration Page 15 9. AWARDOFCONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS a) Approve Change Order #3 and Final Pay Estimate 19Sth Street - Engineering b) Approve Change Order #2 Walnut Street Project - Engineering Page 16 Page 17 11. UNFINISHED BUSINESS a) Adopt Ordinances - Approving Franchise Fees for Seal Coating- Engineering b) Adopt Resolutions - Approve 2011 Tax Levy and Budget - Finance Page 18 Page 19 12. NEW BUSINESS 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. ~ City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.fannington.mn.us TO: Mayor and Councilmembers Peter J. Herlofsky, Jr. ~ City Administrator ~ Response to Lacelle Cordes FROM: SUBJECT: DATE: December 6, 2010 INTRODUCTION / DISCUSSION Provided bv the City Attornev At a previous Council meeting, Ms. Cordes raised a concern regarding a conflict of interest with the Mayor participating and voting on the budget. According to our City Attorney, while there is not much law on the topic in Minnesota, the courts of other states have generally held that a family relationship alone has no disqualifying effect on the making of a contract, but rather, there must be shown to exist a direct or indirect personal fmancial interest in a contract they are authorized to make in their official capacity. Most, if not almost all of the budgetary decisions the Council makes are not directly connected to the employment contract between the elected official's spouse and the City. Questions regarding general levels of taxation, employment and service levels or programs are not directly linked to the employment contracts of any of the City's employees, but rather the majority of City employees have the terms and conditions of employment established by collective bargaining agreements between their exclusive representative/union and the City. It would be prudent for the elected official having a spouse who is a member of the bargaining unit to recues themselves from participating in negotiations with the union for that unit and from voting on the final contract. Failing to do so, could give rise to claims that the contract was invalid or that the law prohibiting conflicts of interest were violated. Aside from this limited circumstance, it is the City Attorney's opinion that the councilmember who is a spouse of an employee may lawfully participate fully in the budget and tax levy process. ACTION REQUESTED For your information. Respectfully submitted, Peter J. Herlofsky, Jr. City Administrator 1-1 06 City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.fannington.mn.us TO: Mayor and Councilmembers FROM: Peter J. Herlofsky, Jr. r/';;) City Administrator \!J'. SUBJECT: Response to Lenny Hall DATE: December 6, 2010 INTRODUCTION I DISCUSSION At a previous Council Meeting, Mr. Hall asked about the debt that would be incurred by starting a Deputy Registrar office. Staff has been meeting with various Deputy Registrar offices and reviewing options. Along with these options are varying levels of expenses and revenues. One option has been brought to our attention in the last couple weeks which would incur no debt to the City of Farmington. This option is currently being reviewed by our City Attorney. Staffwill continue reviewing all options prior to making a recommendation to the City Council. ACTION REQUESTED For your information. Respectfully submitted, Peter J. Herlofsky, Jr. City Administrator 2-1 r;, c- City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.fannington.mn.us TO: Mayor, Councilmembers and City Administrator~ FROM: Kevin Schorzman, City Engineer \'j SUBJECT: Response to Colin Garvey DATE: December 6,2010 INTRODUCTION / DISCUSSION At a previous Council meeting, Mr. Garvey asked for a breakdown of the costs for seal coating. The information is attached. ACTION REQUESTED For your information. Respectfully submitted, Kevin Schorzman City Engineer 3-1 Breakdown of Historic Expenditures Related to the Annual Seal Coat Project Total Seal Coat Crack Seal Year Expenditure Payment Payment ELA 2000 $ 84,546.60 $ 78,771.70 $ 5,774.90 2001 $ 48,184.24 $ 39,875.14 $ 8,309.10 2002 $ 63,935.77 $ 57,167.30 $ 6,768.47 2003 $ 68,410.85 $ 59,306.84 $ 9,104.01 2004 $ 124,778.55 $ . 111,953.71 $ 12,824.84 2005 $ 180,322.87 $ 130,882.85 $ 34,142.15 $ 15,297.87 2006 $ 148,086:99 $ 114,711.35 $ 14,535.00 $ 18,840.64 2007 $ 184,415.40 $ 145,920.00 $ 14,943.46 $ 23,551.94 2008 $ 134,093.98 $ 81,680.64 $ 23,511.54 $ 28,901.80 2009 $ 283,883.44 $ 236,792.16 $ 29,583.04 $ 17,508.24 2010 $ 216,302.56 $ 175,541.49 $ 19,990.72 $ 20,770.35 Seal Coat Payment equals the actual payment to the seal coat pontractor. Crack Seal Payment equals the actual payment to the crack sealing contractor. ELA includes all other costs associated including .but not limited to: Plan preparation costs Inspection costs Postage Legal Notice costs Administrative fee paid as part of JPA Legal review costs Assessment roll preparation costs 3-2 I' ~d City of Farmington 430 Third Street Farmington,~esota 651.280.6800 . Fax 651.280.6899 www.ci.fannington.mn.us TO: Mayor and City Council Members Peter Herlofilky, Jr., City Administrator ~ Tony Wippler, Assistant City Planner FROM: SUBJECT: Response to Ellsworth and Kay Hoeppner DATE: November 16, 2010 Question: Does Base Company have a conditional use permit or nonconforming permit for unloading and loading his product on a public street? Answer: No. A conditional use permit is not required in this instance. The business located at 525 1st Street (pressline Industries / Base Specialties) is established within a grandfathered nonconforming structure and is a ,ermitted use. The building does not meet the current setbacks for the zoning district it is within. The property s zoned B-3 (Heavy Business). Additionally, the property exceeds the maximum lot coverage requirement of the B-3 zone. A variance was granted to the owner of the property in 2001 to exceed the maximum lot coverage in the B-3 zone. Section 9-1-3 of the City Code offers the following regarding Parking and Stopping: It shall be unlawful for the owner and/or driver of a motor vehicle to stop, stand, or park the said vehicle in any of the following places, except when necessary to avoid conflict with other traffic or in compliance with the directions of a peace officer or traffic control device: (A) On a sidewalk or boulevard between sidewalk and roadway. (B) On a cross walk. (C) Within an intersection. (D) Within twenty feet (20') of a crosswalk at any intersection. (E) Within ten feet (10') of a fire hydrant. 4-1 (F) Within thirty feet (30') of any arterial stop sign or sign indicating the direction for travel. (G) On the roadway side of any vehicle stopped or parked at the edge or curb of a street or highway. (H) At any place where official signs prohibit stopping, standing, or parking. (I) In any manner on any street or highway so as to interfere with or interrupt the passage of other vehicles. (J) Along the curb adjacent to any posted school property from eight o'clock (8:00) A.M. to four o'clock (4:00) P.M. on days when school is in session. (K) In front of a public or private driveway. (L) Alongside or opposite any street excavation or obstruction when such stopping, standing or parking would obstruct traffic. (Ord. 083-146, 5-16-1983) This is enforced by the City's Police Department. This information will be provided to the owner of 525 1st Street. Question: Does Base Company have a permit for off street parking? Answer: As previously mentioned, the property is grandfathered nonconforming in regards to setbacks and lot coverage. There is not adequate on site room to fully meet the requirements of Section 10-6-4 (Off Street Parking). Additionally, there is not enough room on site to accommodate large truck movements for loading and unloading of materials/product. Comment: If Base Company does not have these permits, this should be stopped immediately for safety reasons. Response: No permits are necessary. Respectfully submitted, I~~ Tony Wippler, Assistant City Planner Cc: Ellsworth and Kay Hoeppner 4-2 2'a- \.... COUNCIL MINUTES REGULAR November 15, 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, Fogarty, May, Wilson Donnelly Joel Jamnik, City Attorney; Peter Herlofsky, City Administrator; Teresa Walters, Finance Director; Kevin Schorzman, City Engineer; Lisa Shadick, Administrative Services Director; Brenda Wendlandt, Human Resources Director; Cynthia Muller, Executive Assistant Beve Preece, Mary Scheide, Jason Bartholomay, Colin Garvey, Jeff Thelen, Gaye Smith 4. APPROVE AGENDA Councilmember May pulled item 7c) Approve Police Sergeants Amended Contract for discussion. MOTION by Fogarty, second by Wilson to approve the Agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS a) Deputy Registrar Office Presentation Ms. Gaye Smith, Director of Operations with Quick Serve which is a privately owned Deputy Registrar office operating out of the South St. Paul City Hall, provided Council with information on opening a Deputy Registrar office in Farmington. She stated Farmington has an enormous responsibility and opportunity and a wealth of knowledge and ability to service the residents. The most important item is having the Council onboard and is this something you want for the residents here. If Council is supportive and want to work with staff, this will be an overwhelming opportunity for the City. It can be revenue making, but it has to be run like a business. To start up you need the knowledge and the experience and the passion for what you do. The rest will fall into place. The community needs to support it. The City needs to look at the ages of the residents in the community and supply the services that they will need. The City will have the opportunity to give free services. Through this you collect the knowledge you give to Veterans and seniors that you have been able to supply the services normally they would have to drive a distance to obtain or do by mail or internet. There have been thousands of transactions done through the mail or internet that 5-1 Council Minutes (Regular) November 15,2010 Page 2 people did not receive and had to come to the office to complete these face to face. You have a person in front of you which provides an opportunity to encourage them to do their business locally and bring traffic downtown. This can be a revenue stream. If you start in the winter, between 6 months to 1 year you could have enough revenue base to at least start breaking even and make some money. There are several offices that are not making money. Their office has grown in three years from 8 employees to 18 employees. They go out and look for their traffic and don't wait for it to come in. If you don't have experience and knowledge and a transaction is not done properly, the customer will not return. It is important the transaction is done right the first time to have return customers and generate a revenue stream. The South St. Paul Office provides drivers licenses, the DNR, game and fish, and motor vehicle transactions. You want to offer as much service as possible in the space you have. Driver's licenses and passports can no longer be issued in the same office. Offering driver's licenses here would be a huge opportunity, as Rosemount does not offer driver's licenses and Farmington could pull in that base. Due to the farms in the area, she suggested having the knowledge of the farming aspect of pro-rating. Many motor vehicle transactions can be done online, but title transfers need the hands-on experience. Law enforcement will check with Deputy Registrars regarding vehicle ownership to remove it from an impound lot. To bring in service, Ms. Smith suggested going to senior centers and veterans meetings and let them know we are here to help them. 6. CITIZEN COMMENTS Ms. Mary Schiede, Manager of the Dakota County Farmington Library, spoke about a collaboration between the Farmington Library and the Minnesota Creative Arts and Aging Network (MnCAAN). MnCAAN is coordinating Art of Aging projects which bring professional artists into senior housing sites in the metropolitan area. Last week, Trinity Care Center was an artist residency site. For three days last week, residents mostly over the age of 85 created memory tiles that tell their life stories. They shaped and glazed the tiles that represent significant people, places and moments in their lives. Volunteers from the DV AC and Trinity helped with the project. The Farmington Library will host a community celebration for this project on December 4. The community is encouraged to attend. The ceramic tiles and written stories will be on display. There will be a program to recognize their efforts and also music and refreshments. This celebration ties in with Downtown Dazzle Days also on Saturday. There will also be a holiday movie matinee in the afternoon prior to the Tree Lighting event downtown. The next Minnesota Mosaic program will be held December - February related to the Art of Aging project. On December 9, the Library will host a "Maintain Your Brain" workshop hosted by the Alzheimer's Association. Over the next eight months the Library will have brain fitness stations to help maintain mental capacity. Ms. Beve Preece, DV AC President, helped with the memory tiles. She was amazed at the creativity of the residents from those in their 90's to children for the Art Show. The DV AC will have their Holiday Art Show at the Library in conjunction with the display of 5-2 Council Minutes (Regular) November 15,2010 Page 3 the memory tiles on December 4. On November 20, the DV AC will have ornaments at the Library for people of all ages to paint to be displayed on the holiday tree downtown. Mr. Lenny Hall, 714 8th Street, was pleased to receive the presentation on the Deputy Registrar office, however, this does concern him. He wanted two questions addressed as there are some people who are very anxious to get this started. He asked how this will not create debt for the City and if it does create debt, how much will it create. Mr. Colin Garvey, 22098 Canton Court, did not have his questions addressed yet. He would like the issue resolved regarding the assessments on Pilot Knob Road. Until it is determined where the money went and how the project was paid, approving franchise fees for seal coating should be tabled. Regarding the Deputy Registrar office, he heard gaming and fishing licenses and asked if the City would be offering that service. He wanted to make Council aware we have a local business that does offer that and to compete against them would be the wrong thing to do. Mayor Larson asked about the status of the answers for Mr. Garvey's questions. City Administrator Herlofsky stated this is still being worked on, staffhas been working on the budget, but the answers will be provided as quickly as possible. Councilmember May had a general comment about Citizen Comments. She would like to see more consistency as far as when the Council sees the responses. For example, the Hoeppner's response. Sometimes responses are included in the next packet and sometimes they are not. Even if the response is staff is working on it, provide a summary in the next packet as to the status. She would like some consistency with follow-up to citizen comments. 7. CONSENT AGENDA MOTION by Wilson, second by Fogarty to approve the Consent Agenda as follows: a) Approved Council Minutes (11/1/10 Regular)(11/8/l0 Special)(11/8/1O Workshop) b) Approved Various 2011 License Renewals - Administration d) Approved Minnesota Cities Stormwater Coalition Membership Renewal- Natural Resources e) Approved Bills APIF, MOTION CARRIED. c) Adopt Resolution - Approve Police Sergeants Amended Contract - Human Resources Councilmember May was aware this was brought up in a workshop, but this is the first time Council has seen a document. She appreciated the Sergeants for reviewing their contract, but her concern was with the extension of the contract. She believes we have to make data driven decisions and Council does not have enough data to approve this. There are a few issues with this, such as extending the contract for a third year and taking an increase for next year and spreading it out over a third year. She asked how that affects where we will be in 2013. In 5-3 Council Minutes (Regular) November 15,2010 Page 4 2012 there will be additional bond payments to be made. She was in a difficult situation to be approving a wage increase for one group of employees for the City. It puts the Council in a difficult situation in that this could have a potential negative effect on other City union negotiations we may have in the future. We have a difficult budget ahead for 2011 that we are still working on. She also has an issue with the sentence about contributing a flat rate equal to 50% of the increase for group insurance. There is no data to look at as far as industry estimates for increases. It looks good on the surface, but felt we need to be very careful with this document. All departments must be engaged in evaluating efficiency in cuts and expenses. She was not sure on the surface this constitutes a cut. Councilmember May does not think it does. Council has focused the budget workshops in trying to look long term and this does not do that. We have to get in the habit of making more data driven decisions. The initial purpose of them sitting down and doing collective bargaining may have been good intentions, but she was not sure we are accomplishing anything. She suggested honoring the contract we have and we will deal with what we have to in next year's budget cycle. Councilmember Fogarty asked if the language regarding the 50% of the increase is in the current contract. Staff confirmed it is. Councilmember Fogarty explained currently the Sergeants have a signed contract that gives them a 3.5% increase in 2011. They have re-negotiated with the City to split that between 2011 and 2012 with the agreement the City would also provide that amount in 2013. She felt this is a fair settlement agreement and agreed Council has been looking for long term and permanent cuts that will make future budgeting easier. At the same time, she felt these are fair increases. When they made the current contract it was in a very favorable economic climate. For all they know, they are giving up a favorable economic climate in 2013. She would approve the contract. Mayor Larson stated it comes down to paying them 3.5% next year and then negotiate maybe they would not get an increase the next two years. This would guarantee them an increase for the third year. This is a short term fix for 2011, but not for the following years. Councilmember Fogarty stated it does get us ahead for re-negotiating. Everyone does not negotiate contracts at the same time. It does take one negotiation off the table for 2013. Human Resources Director Wendlandt reminded Council the Police do go to binding arbitration if we do not come to an agreement and the arbitrator decides what will happen. This is unique to law enforcement. City Administrator Herlofsky stated if in a workshop we are going to determine a strategy for resolution of a contract, we need to have Council's concerns at that point in time. Staff is making agreements based on indications from the Council. For good faith bargaining on both sides, it is necessary there be confidence that both people have agreed to it. The reason Council is receiving the contract at this stage is we would not bring to the Council an unapproved contract. We have the Police Sergeants being very willing to talk to us. They did not have to and this is a good faith 5-4 Council Minutes (Regular) November 15, 2010 Page 5 effort on their part. Something similar is also in process with the Police Officers. Mayor Larson asked Councilmember May if this changed anything knowing it could go to arbitration. She replied no. MOTION by Fogarty to approve. MOTION DIED for lack of a second. Mayor Larson would prefer to have full Council present to vote. MOTION by Fogarty, second by Wilson to table this item for more information. Voting for: Larson, Fogarty, Wilson. Voting against: May. APIF, MOTION CARRIED. 8. PUBLIC HEARINGS a) Approve Various 2011 License Renewals - Administration A hearing was held to approve licenses for 2011 for On-Sale Liquor, On-Sale Sunday, On-Sale Wine & On-Sale Malt Liquor, Club Licenses and Therapeutic , Massage licenses. Staff read a list of businesses requesting renewal. An , extension of the public hearing was requested for Weng's Kitchen and the Ugly Mug for wine licenses. MOTION by Fogarty, second by Wilson to close the public hearing. APIF, MOTION CARRIED. MOTION by Fogarty, second by Wilson to approve the above licenses. APIF, MOTION CARRIED. 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS a) Approve Change Order #3 and Final Pay Estimate Dushane Parkway Extension Project - Engineering Mayor Larson thanked staff for including the pay items and what was used and not used. The fIrst section of this item is for work necessary at both intersections of Dushane Parkway and Spruce Street regarding reconstructing a light pole because of some incorrect survey information. This is an addition of $1 ,820.70. The remaining section is balancing the estimated quantities that were included in the original contract back to the quantities actually used to construct the project. That section was -$85,447.87. The total change order amount is -$83,626.67, which including all of the change orders on the project, changes the final contract amount from the original of $697,329.20 down to $680,823.57. The final pay request is $46,197.98. This project was funded by developer funds. Mayor Larson asked if the funds for the difference in the contract amount were still available in case anything needs to be finished. City Engineer SchorZffian explained the City spent $17,000 less constructing the project. To see the remainder left in the escrow we need to know how much interest was gained during the amount of time the money was in the fund as well as other project costs such as design costs, construction, inspection, material testing, etc. The $680,000 is the amount paid to the contractor. Councilmember Wilson stated we are seeing a credit to the City in the amount of $1,354 for a survey error. He asked why we are only given credit for this amount and not the full $1,820. City Engineer SchorZffian explained the survey company 5-5 Council Minutes (Regular) November 15,2010 Page 6 paid for the portion of the work that needed to be redone directly related to their surveying error. The remaining $466.70 is half of the labor to remove some new curb and gutter. The reason it is half, is because the contractor asked him if they could move forward using the new light bases as a known elevation in the interest of moving the proj ect along. Staff approved this. If we would have waited for the surveyor, the curb would not have been placed so it was staff's fault, not the surveyor's. The surveying error was discovered after the new light poles had been installed. Councilmember Wilson stated the City should not be paying for incorrect work done by someone else and then paying labor twice. Staff explained the doubling of labor was due to staff telling them to go ahead before we knew there was a surveying error. Councilmember May asked about the change order for $65,000. City Engineer Schorzman explained there were alternate bids for the streetscaping. Because of how the contract was packaged, we decided to only do some things in the alternate so they were added as a change order. These were related to the sidewalk work by McDonald's as well as work on the trail. The alternates were rejected and we added the portions we wanted done to the contract. MOTION by Fogarty, second by May to approve Change Order #3 for the Dushane Parkway Extension Project in the amount of -$83,626.67, and approve the Final Pay request for the project in the amount of$46,197.98. APIF, MOTION CARRIED. 11. UNFINISHED BUSINESS a) Franchise Fees for Seal Coating - Engineering At the November 8, 2010, workshop Council indicated they were interested in moving forward with the seal coat project for next year. However, we need to determine how to pay for it. Based on a conference call with the utility companies, Council was provided with updated information on franchise fees from the gas and electric utility companies. Council and staff wanted to have a long term sustainable revenue stream for the seal coating project which is done every year. Council requested staff to determine if there was a way to even out the fluctuations in the amount charged to residents and businesses for seal coating. Staff provided information showing historic costs for seal coating and a projection of costs for the next seven years. Councilmember May noted the historic numbers show a flat cost from year to year and asked for an explanation of why there are increases going forward. City Engineer Schorzman stated the increases show twice the amount from past years because assessments will be 100% of the cost. Also, the makeup of each individual year changes according to the number ofREU's each year. In 2013 there is a dramatic jump because of the amount of work to be done and the number ofREU's. The original franchise proposal had a split of 65% residential and 35% commercial. The past history of the projects showed a split of80% residential 5-6 Council Minutes (Regular) November 15,2010 Page 7 and 20% commercial. Council preferred to continue this proportion. As a result of a recent conference call with the utility companies, the fee for residential and small businesses for gas and electric would be $2/month and non-residential would be $8/month. A small business would be a business that uses electricity similar to a residential use. Mayor Larson asked about apartments, ag land, schools, churches, City property, FAA, etc. City Engineer SchorZffian stated franchise fees address some of the inequities in the existing program. Currently apartment buildings are charged by the area they occupy. With franchise fees they would be charged per meter. The schools, churches and City property in general will see a reduction with paying franchise fees. The peaks and valleys in amounts charged will even out. The FAA will pay a franchise fee because they have a meter. The ag land in the past has not been assessed for seal coating. Some ag properties will be affected by franchise fees if they have gas or electric service. In the past, if there was a home on the ag land, they would be charged one REU. Staff provided a spreadsheet showing the cash flow with franchise fees if approved tonight. Over the seven year period there will be a positive balance at the end of the seven years. The ftrst year there will be a negative balance due to a 90-day timeframe between when franchise fees are approved and when we can begin collecting them. We will miss out on two months of revenue for 2011 as of now. That corrects itself in 2012 where there will be a positive balance. Staff also showed cash flow based on assessing 100% of the project. This shows a negative balance throughout the seven years. Unless there is an infusion of cash, there will never be a zero balance until the year after we stop seal coating. We would have to have $290,000 in cash to start with in order to not have a negative balance if assessing. Councilmember May asked if there was a balance in the road and bridge fund to make up for the negative $27,000 for the first year. City Engineer SchorZffian stated right now, there are no unencumbered funds in the road and bridge fund. While there is cash available, it is encumbered for other things. If that is used, it would have to be made up in the future. Staff recommended not using that money. The franchise fees will be positive after the ftrst year. Finance Director Walters is still working on the road and bridge fund. So far, the seal coat portion has gone negative for many years. The money designated for Pilot Knob has not come in. Staffwill go through all of the projects with Council soon. Councilmember Wilson stated any model predicting what expenditures will be will be off. Regardless of what Council does, if there is no plan to accommodate for underestimated costs, that will be a problem. In June 2016 there will be $360,000 in the franchise fee fund. Even though we are dedicating the money for seal coating, there could be the ability to move the money from this fund to somewhere else. Next year we have the potential of the street light utility being short, and this seal coat fund could be short. Staff also provided a spreadsheet 5-7 Council Minutes (Regular) November 15,2010 Page 8 showing if there is no contingency expenditure and also a 5% contingency on the seal coat project. Staffwas comfortable that for the fIrst seven years, the franchise fees will cover the cost of the program even with the addition of new developments. As you get new developments, there are new homes and more meters. So as the project grows, there are people to pay for it. Mayor Larson asked about the possibility of moving funds out of this account to be used for things other than seal coating. City Engineer SchorZffian stated this is set up as its own account. If the only money coming in is from franchise fees and the only money going out is for seal coating costs, the transparency is the best defense against shifting money. This does not mean future Councils could not do this. Councilmember Wilson stated before this year, Council had considered borrowing from every fund in the City to payoff the debt. There is nothing preventing the City from using this fund for other purposes and then paying itself back. A future Council can use the money however they see fit. City Attorney Jamnik agreed. Finance Director Walters stated if you take it out of the road and bridge fund and keep it separate, it is easier to monitor. It can be added to the monthly fmancial report so you can see everything that goes in and out of the fund. Councilmember Wilson stated with the increased cost of doing the maintenance on the road, to defend a benefit challenge, what makes it less defensible than paying $48/year for no benefit up until the time you gain the benefit. City Attorney Jamnik stated there is no basis to challenge a franchise fee. It is only a question of whether the fee is reasonably set. You do not have a benefit challenge available. Weare in a range now for residential units where we should not have any difficulty sustaining a benefit challenge. The problem we incur is with the larger institutions with multiple REV's where the current methodology seven years down the road could be difficult to sustain. Councilmember Fogarty asked if the project cost of $274,000 for 2010 has a contingency. City Engineer SchorZffian confIrmed it does. He believes the cost of the seal coat project will fall in between the no contingency number and the contingency number with a positive balance. Councilmember Fogarty noted the fInal project number has always been less than the estimate. From 2002 to 2008, which is one seven-year cycle, the cost went from $.50 to $1.25, a $.75 increase. From 2009 to 2015 the estimate goes from $1.75 to $1.90, only a $.15 increase. It seemed staff does not anticipate the cost increasing at the same rate. Staff anticipates the same dollar amount change. Councilmember May stated regarding borrowing from funds, she was comfortable with this being a separate fund. Her concern is that there can be other things associated with seal coating like engineering costs, salaries, etc. She asked how staff can reassure Council that only seal coating costs will be taken from this fund and nothing else. She stated in the past only the seal coating has been assessed not salaries. City Engineer SchorZffian noted salaries are part ofthe assessment and always have been. The only things associated with the seal coating project that are not directly charged to the seal coating process are crack sealing ahead of 5-8 Council Minutes (Regular) November 15, 2010 Page 9 time and the amount of time our staff spends on sweeping afterwards. Councilmember May had a fundamental problem with paying salaries out of the franchise fees. Salaries should be in the budget as part of the general levy. Councilmember May asked what will be done with the surplus if the costs are lower. She asked if we should defme a level of surplus that is in excess. City Engineer Schorzman replied if you have a surplus, it draws out the time until you need to raise fees. Councilmember May would like it defined that the surplus cannot be used for any other purpose than to delay increasing fees or reducing fees. City Engineer SchorZffian advised staying away from reducing fees, because eventually you may have to increase fees. He has estimated in the ninth year there may need to be an increase. Councilmember Fogarty noted we cannot bind future Councils. She felt a separate fund forces that transparency. Councilmember May felt salaries should not be included as that is a gray area. Staff noted as far as salaries, only the time spent on the seal coat project is charged to the project. Councilmember May fundamentally disagreed with including salaries. City Administrator Herlofsky explained we have 60 employees paid out of the general fund. There are another 35 employees who are used in a variety of areas where we allocate the cost to the service. Councilmember Fogarty would be willing to have a discussion on that policy, but it will not change the amount of money we need. Councilmember May asked about the utility surcharge and noted the utility companies will pay the City quarterly, but the amount we receive will include adjustments to the total surcharge billed in the period for which the payment is made to account for uncollectibles, refunds, or error corrections. Staff explained the utility companies will pay us quarterly based on what they bill out. When they audit their books, they will determine how much they did not collect because people did not pay their bill. That adjustment will be made on the next payment they send to us. City Attorney Jamnik stated the utility companies will pay in advance, but if they made an error in billing or there is non-payment, their payment to us will reflect that amount. ' Councilmember Fogarty stated by going to franchise fees we are anticipating that because we will no longer be assessing, we will see a savings in not having to prepare the assessment rolls. She asked for an estimate of what that savings would be. City Engineer SchorZffian replied for the past seven years the cost has been a total of $58,000 - $59,000. Mr. Jeff Thelen asked for updated information which was received by Council tonight. Last Wednesday, he had a lengthy discussion with the City Engineer regarding the new fee structure. Tonight he read how small commercial businesses will only pay $2/meter rather than $8/meter that was completely different from the discussion on Wednesday. City Engineer Schorzman stated he had a conference call with the utility companies on Friday with new information. On Wednesday the discussion was that all commercial would be the same price. There were a couple options from $8.50 up to $12/meter. He was surprised that things changed so fast. Mr. Thelen asked as a person paying this fee, how are we 5-9 Council Minutes (Regular) November 15,2010 Page 10 supposed to have a chance to comment to Council when the information changes so often. It is on the agenda with a recommendation Council pass this. He did not know how the Council can even consider that since this is brand new information. It changes things considerably. If it will be an even amount across the board, at least there is logic to that, versus picking an unknown number of small commercial generators. We cannot tell anyone tonight how many that will be. We are relying on the utility companies to determine how much our tax will be. We have come full circle to where we have come to a different logic and thinking that it will be two rates - a residential rate and a commercial rate. Now we are splitting up commercial rates again. People in his category have a 15,000 sq. ft. building paying the same price as someone who has 120 acres with $50 or $60 million worth of buildings on it; for instance the schools on 208th Street. They would be paying the same amount as Mr. Thelen. His building will be paying four times the amount as an identical building across the street in the industrial park because of the demand meter vs. the non-demand meter. This is the part where there is no logic. Last week he was told by two people from the City that it is on the agenda because we need to know if we will continue seal coating, there will not be a discussion. Mr. Thelen found out there was a lengthy discussion and he would have been here last week to comment. He asked to keep residents informed and to not pass out new information at the meeting. Changes come so quickly in City Hall; it is not fair to the residents. We are back to the things he asked a month ago; things he thought were resolved last Wednesday. Mr. Thelen compared the schools on 208th Street. We have three different properties with two schools and possibly an additional meter for an athletic complex. On an RED basis they had 235 RED's x $108 rate. With the new version of paying $8/meter in seven years they are paying $6,000 - $7,000 vs. $67,000. Councilmember Fogarty stated no one knows how many electric bills they receive. Mr. Thelen stated once it surpasses the small commercial meter, we don't care because there is one rate. Whether you are the smallest of the demand meter or the largest of an industrial user, it is the same meter rate and that does not make sense. Weare not associating seal coating with the actual wear and tear the building has or the acreage they have or the demand they put on the public services for the street. Weare associating that rate with their electric bill and that does not make sense. Weare also relying on the utility companies to set the tax rate. Council's job is easier, because it is the utility company residents have to call to argue about the fee or the tax rate. Once a quarter, the City sends someone out to read the meters. In essence the City is doing an audit to make sure the amount shown on the meter is what is paid on the bill. The State audits the City every year and makes sure everything is in order. Where in any of this will there be an audit that the City, the County, the State, someone does of the utility companies to make sure what they are reporting is an accurate number. When they say 20% of their customers have not paid their bill so we will short you 20% of the payment for seal coating, is there an audit to verify this? City Engineer SchorZffian stated in the franchise ordinances there is a provision for the City to review the information, provided we do not give out private information. We can 5-10 Council Minutes (Regular) November 15, 2010 Page 11 verify what they have been collecting and passing on to the City. Mr. Thelen stated but that information cannot be shared with the people who set our tax rates. City Attorney Jamnik replied we would not give personal information, but we would provide summary information. Mr. Thelen hoped the information would be shared with Council as far as how many commercial people are paying the lower rate vs. the middle rate. Mayor Larson asked for the rationale for the small commercial paying the $2 rate rather than having a flat commercial rate. City Engineer Schorzman explained the utilities insisted on that so no one had a competitive advantage over the other. The utility companies have to agree between the three of them that what the City is proposing does not give a competitive advantage to one company over the other. They all three agreed that if we did not change the small non-demand meters to $2 that would create a competitive advantage. Mr. Thelen stated there .. is no one here from the utilities to make that case. He is paying four times more .per month than the building across the street on a franchise fee for the same . usage. That is not fair. That puts Mr. Thelen at a disadvantage if both buildings were up for sale. If everything else were equal, they would have to pay four times the tax at his building. Anyone that is more than % acre of land is being subsidized by someone else. Someone with hundreds or dozens of acres of land with commercial buildings, they are paying a miniscule amount compared to someone that has 100 ft or 300 ft of frontage. Mayor Larson stated that is where staff explained about bringing the peaks and valleys to a flat center line. Mayor Larson asked if all commercial buildings paid the flat $8 fee would Mr. Thelen be more comfortable with that. Mr. Thelen replied no, but by having a $2 rate and then anything above that at a higher rate, that is where he has a problem. There are many identical types of buildings that have a slightly different use on the inside, and that is what throws it from a demand to a non-demand meter. Mayor Larson asked what Mr. Thelen would be comfortable with. Mr. Thelen replied there has to be a top end fee. If you want to keep the small commercial the same as residential at $2, you need to structure more multiple steps. He recognized in the end the City has to have x amount of dollars per year to seal coat the roads. But just because we keep the split at 80/20, it is the 20% that is skewed. Of that 20%, there is maybe 5% that is paying 80% of that and the rest are paying a small portion. Take the rates of what they are paying now vs. what they will pay in the future. Do that on a variety of different businesses and tell him what that will be. Councilmember May noted there are disparities with residential properties that have more land. Mr. Thelen stated it comes down to the burden and wear and tear put on the streets. Right now, he only has four employees. R&L Trucking has hundreds of trips with vehicles that weigh 60,000 - 80,000 Ibs. Their franchise fee would be identical to his. Councilmember May stated we cannot analyze each business and what we should charge them. Mr. Thelen stated right now you are doing it by REV. Maybe that is what we should stay with. Go back and fix the system you have. With the new system, there are more errors in that system than the old. He wants to stay with so much per acre. Councilmember May stated we 5-11 Council Minutes (Regular) November 15,2010 Page 12 cannot use the utility fee we have and use the meter. Mr. Thelen suggested putting in some variables. He will keep working at it, but he cannot come to the meetings unprepared because staff keeps changing the information to be discussed. He asked to be kept informed. Mayor Larson asked if staff can work with the 20% and try to equal it out or is it based on what the utility companies say we need to do. City Engineer Schorzman stated we have to keep in mind the fees need to be set to not create a competitive disadvantage with the utilities. Staff will not be able to convince the utilities to look at the size of a parcel and charge a fee based on the size. It has to fit into their current billing system. For every system we come up with, we can give examples of where people may feel they are being unduly burdened for the cost they pay in the system. City Engineer Schorzman did not disagree that the amount of electricity used cannot be directly correlated to how much you use the road. That same statement could also be made about the front footage of a lot, the size of the lot in general, any system will have exceptions. If you take it down from the 80/20 split and try to make each individual business pay what they pay now, you will not be able to accomplish that. Mayor Larson asked where the competitive advantage would or would not be if all commercial paid $8. City Engineer SchorZInan explained from discussions, the utilities look at it as a certain percent increase in the smaller bills, that it would be unfair to those people to impose the fee. Mayor Larson asked what the utilities would say if we told them we want all commercial to pay $8. Staff was told by the utilities on Friday that we cannot do that. Mr. Colin Garvey had several things to talk about regarding this issue. Ifwe do not do any projects, staff gets paid. All these extra fees are just that, extra fees allocated to the projects. It is almost double taxing. Mayor Larson asked for an example. Mr. Garvey replied we pay 27% engineering on a project. No matter what, we pay 27% engineering costs. Regarding the chart on seal coating costs, Mr. Garvey stated the cost is $1.48/sq. yard. Staff stated it is $1.35 in 2009. Mr. Garvey stated in 2008 it was $1.08. City Engineer Schorzman stated the $1.08 was the price we paid to the contractor. It did not include the administrative costs of the assessment process. We pay an administrative fee to Burnsville for the Joint Powers Agreement, we inspect the project when it is happening, we do work upfront and all this is included in the chart; it is not just the construction costs. Mr. Garvey stated in the JPA, we are supposed to get a better deal per square yard. We have had an increase, but other cities have not. Why did we have such a dramatic increase in the REV, and when the price came down the REV's stayed the same. City Engineer SchorZInan assumed it was a difference in the type of materials being used. Farmington is the only City in the Joint Powers group that assesses for seal coating. Mr. Garvey talked to Lakeville and they did not see an increase in their seal coating costs, but Farmington did. We are charging more money per household for seal coating. If Lakeville did not have to raise their price, why are we raising our price? Staff explained Lakeville has the same contract we do. Mr. Garvey stated Lakeville takes the cost out of their general 5-12 Council Minutes (Regular) November 15, 2010 Page 13 maintenance fund. On $500,000 worth of seal coating, they only allocate $1,000 for administration fees. Back to 1996 on a $44,000 seal coat, Farmington charged $17,899 in administration fees. In 14 years we have only spent $2,046,263 on seal coating, now we are being told we need to collect $2.8 million in seven years. Maybe the administration fees should be taken out of the equation. In 2009 the seal coat was $431,800 and it was $130/REU. Mayor Larson asked staff for the administration fees for 2009. Mr. Garvey stated to charge us for seal coating to make the electric and gas bills go up, because the City cannot figure out a way to pay for it and control the budgets is wrong. You have an assessment policy that is fair. Mr. Thelen has pointed out so many flaws and Mr. Garvey can show how the costs fluctuate too much. You cannot predict it will keep going up. If the costs go down, the City will take that money and will not keep it in the fund. Mayor Larson stated we have not voted on the franchise fees and are still .gathering information. Mr. Garvey stated if people had not shown up tonight, it :would have been passed. He suggested skipping a year in seal coating. Lakeville has changed their process and are now going to a two-year crack and seal and then start the seal coating. After their second round of seven-year seal coating, they will go out to ten years. Council has time to think about this and get the numbers in line. Councilmember May stated the problem with the assessment process is if we are assessing the full amount, people will not be able to afford it. She noted Mr. Garvey suggested skipping a year and she had also considered this. The assessment process is not feasible if we have to assess the full amount. She was also not convinced about franchise fees. Maybe it has to be included in the general levy, but we cannot do that now. Councilmember Fogarty was opposed to putting it in the general levy because it excludes too many properties. Councilmember May understood the longer the franchise fee process is delayed then we will have a bigger deficit at the end of the fIrst year. She did not think we needed to decide tonight and allow more time for input. Councilmember Fogarty agreed and would like more time to process the information. She was not in favor of adding it to the general levy and was not in favor of skipping seal coating this year. The current plan has been very good for our roads. She had no problem with tabling it and asking more questions of staff. Councilmember Wilson was prepared to vote and would vote no. This is a good example with an issue he has had the past four years. There is no reason for government to feel it has to move quickly. The dynamic between administration and the Council of wanting to quickly rush things through; this is a good example. We have only debated this for two hours, it is not ready. Government should be slow and deliberative. We talk about speculating something at a workshop and then it is on an agenda to pass. That is not good government. Mayor Larson asked if Council wanted staff to work on this more and does Council want to have franchise fees. He was concerned about collecting 100% assessments. He would like to have more control over how this is billed. MOTION by Fogarty, second by May to table this to allow more time for 5-13 Council Minutes (Regular) November 15,2010 Page 14 Council to consider this and allow residents more time to ask questions. Mayor Larson stated his concern is the $2 commercial fee. We do not know how the utility company will decide who is small and who is large. He did not understand how the competitive advantage works with lowering the amount to $2. Councilmember May asked if it can be a flat fee for all. Staff will ask the utility companies. Councilmember May asked if new information is received, how can the public obtain that information. City Administrator Herlofsky stated it will be in the agenda packet on the website. Councilmember Fogarty continued her MOTION to table this item until December 6,2010, for further discussion. She asked staff to obtain the number of businesses we are talking about. She did not want a list of businesses, just a number of how many fall in to the $2 range and the $8 range. Mr. Thelen stated the commercial small non-demand meter accounts between Dakota Electric and Xcel is 287 businesses. He did not know how many are in the large category. Voting for: Larson, Fogarty, May. Voting against: Wilson. MOTION CARRIED. Mr. Thelen stated he was on the website at 3:30 this afternoon to download the agenda for tonight. There was nothing in there about the charges we are talking about tonight. Mayor Larson stated looking back, we probably should have put out an addendum to the agenda. Mr. Thelen stated in the last 2 months we have been discussing this, there have only been four people at the podium. He asked staff to do him a special favor and call him if there is a significant change. City Engineer SchorZtnan stated he was not able to reach Mr. Thelen on Friday, and the spreadsheet information was completed a half hour prior to the meeting tonight. Councilmember May asked if we can put the proposed franchise fees as a separate item on the website. Councilmember Fogarty noted they can go directly to the page in the agenda. Mr. Garvey stated since it is not available in the archives on the website, he asked staff to put together the actual estimated costs for seal coating for the last 14 years, administration fee each year, and the percentage of that fee. Councilmember May asked if we can see the numbers without the added costs, just for the seal coat materials. City Administrator Herlofsky stated staff will provide the construction costs, and each of the other costs associated. 12. NEW BUSINESS 13. COUNCIL ROUNDTABLE Councilmemher Wilson: The Patriotic Day celebration was phenomenal. He thanked the Warrior to Citizens group, Farmington Community Education, and all those who participated in the event. He also attended the indoor Marching Band Concert, and Turkey Bingo. 5-14 Council Minutes (Regular) November 15,2010 Page 15 Councilmemher Fogarty: The Patriotic Day was fantastic. She encouraged people to donate to Toys for Town and the local food shelf. At the budget workshop there was a comment about the microphones. She will keep the mic closer to her. Councilmemher May: The Knights of Columbus will be hosting its annual Turkey Bingo on November 20, at St. Michael's Church. A dinner will be served with bingo following. Proceeds will go towards the local food shelf. City Administrator Herlofsky: There was an article in the Star Tribune regarding economic development in Farmington. The Mayor and staff attended the opening of the CDA housing in Apple Valley. The building will be similar to the facility located in Vermillion River Crossing. Staffwas assured by the CDA this will be a 2011 project. In addition, the Twin Ponds housing on TH3 will come next year. Mayor Larson: Parking restrictions have started with no overnight parking on the streets. There will be a community celebration at the Library on December 4. He encouraged residents to sign up for Nixie and Twitter to receive City information. Donations are being accepted for Toys for Town. He asked residents to shop locally. The proceeds from the liquor stores are used locally. 14. ADJOURN MOTION by Fogarty, second by Wilson to adjourn at 9:55 p.m. APIF, MOTION CARRIED. Respectfully submitted, /'1 --"-4/')..- /:'<7' L ...,..,v..UL.<:a /1 7,-",_ c.(:c'.:.--' ,/ ~. .;.:-':;' v Cynthia Muller Executive Assistant 5-15 Council Budget Workshop Minutes November 22, 2010 Mayor Larson called the workshop to order at 6:30 p.m. Present: Also Present: Larson, Donnelly, Fogarty, Wilson, May (arrived 6:34 p.m.) Peter Herlofsky, City Administrator; Teresa Walters, Finance Director; Jim Murphy, Police Sergeant; Randy Distad, Parks and Recreation Director; Todd Reiten, Municipal Services Director; Lisa Shadick, Administrative Services Director; Brenda Wendlandt, Human Resources Director; Cynthia Muller, Executive Assistant MOTION by Fogarty, second by Wilson to approve the agenda. APIF, MOTION CARRIED. Mayor Larson read a prepared statement addressed to City Administrator Herlofsky. From the July workshop until now I feel like we have been fighting and working for two different causes. I feel like in this budget you have been fighting to keep your staff and I admire you for that, and how hard you have been working for them. In a perfect world and in good times I believe your budget suggestions would work. But this is not a perfect world and these are not good times. The last three years have been tough, not only for the City losing around $1 million in revenue from the State, but the last three years have been tough mainly on the residents of Farmington. Most people have seen a reduction in their yearly income, they have seen a decline in property values and they have had increases in their expenses. Council has been fighting for the residents and the taxpayers. With this budget we have asked you to come up with long term reductions and I have not seen a lot of those. For months we have asked you to reduce staffmg, mainly a department head, and you have come up with everything but what we have asked you for. The budget has seen an increase in debt service and an increase in bond payments along with a decline in revenue. With the increases in debt service and reduction of revenues, this budget cannot support all of the department head salaries. Council does not like losing jobs, but in these hard times we have to make hard decisions to bring our revenues and expenses back into balance. I am asking the City Administrator to work with us and do what needs to be done and make the hard decisions we ask you to make~ Mayor Larson stated this sums up his frustration over the whole budget. This should have been done months ago. Councilmember Fogarty was comfortable with changing the Police Sergeants contract. She did not know if asking staff to reduce their hours, unless it is a permanent fix, is exactly what Council was looking for. She has struggled with where Council wants to go, what we want to do, and what our goals are for 2011 and beyond. That is why we have been asking for permanent cuts. She noted we did have a one time, for two years in a row, a contribution to the Fire fund. It is possible that will not be as high next year and the solution was a permanent fix. There are some permanent reductions that took care of a temporary situation. The $79,000 is a one time one year savings for 2011. It is possible that will wash out if we do not contribute to 5-11 Budget Workshop Minutes November 22,2010 Page 2 the Fire fund next year. We cannot fix every problem that will come up in future years with one year's budget. There are some permanent cuts. She is struggling with the $79,000. (Councilmember May arrived). Mayor Larson agreed as long as the market holds. Councilmember Wilson asked where the $79,514 is. Councilmember Fogarty stated it was in previous information when we had to put more in the Fire fund than anticipated and an employee volunteered to be laid off. That position will not be reinstated and is a permanent reduction of approximately the same amount. Councilmember Fogarty was also comfortable with the permit revenues and felt they were conservative. She trusted staff as far as the interest revenue. Councilmember Wilson stated he was extremely floored by the quasi attempt at trying to double back on the November 18, e-mail. This Council was not open to furloughs. He did not know how the discussion from the last workshop resulted in asking AFSCME if something that happened two years ago could be considered for this year. That is not a permanent solution. Councilmember Wilson would have appreciated it if Council would have been contacted about the direction and asked to reconsider furloughs. He would like to know who the individuals are that requested reduced hours. He has been told that the City Administrator has said no one will lose their job. So for someone to lose their job would be an uncomfortable position to be in. He does not want to hand pick positions, but Council has to set the strongest financial position possible for the upcoming Council. This started in January with wanting to borrow money from every fund in the City to payoff our debt. Council agreed to not do that. We have rising debt payment, Council decisions to take care of the arena, we have the fIrst full year of the senior center. He takes no joy in someone leaving the City, but when you have declining revenues you have to look at expenditures. He felt it is a challenge to the teamwork when furloughs are brought up on November 18,2010. He did not hear anyone on Council talk about being open to furloughs. We took that off the table in July. We felt it was a drain on employee morale to cut hours. Councilmember May stated there is nothing long term presented. Since July that has been a common message. A lot of these suggestions are borrowing time. Everything in the budget will be on the table next year. Overall the process is flawed. When we throw out a number, it becomes about the number. Some have the opinion that if staff meets the number that is all there is to it. There has to be more to the process than figuring out how to plug things in to reach a number. There has to be input from Council and residents if we are okay with how the number is achieved. We have been battling that since July in trying to see long term solutions. If the economy does not turn around, we could be looking at these same tough decisions next year. We have to look at serious solutions this year. A suggestion from a Council candidate was a Community Council. Maybe that would help Council and staff look at ideas in long term solutions. If that would help spur more discussion maybe we need to try that. She suggested looking at that in January to help with good discussion on how to improve efficiencies and be better prepared on fmalizing a budget rather than on November 22. She was disappointed the building permit revenue was not reduced. The interest should be a reduction of $70,000. The recommendation to keep the levy the same was also a concern. The idea was to look out for the taxpayer and now we are going to talk about a contingency. She was back to where are the 5-18 Budget Workshop Minutes November 22, 2010 Page 3 permanent cuts. No one wants to talk about anyone losing their position. It can be a tough break for some, but good people land on their feet. Spending will not change until we can accept cuts. She felt we need to do more work and she would agree with calling a special session. Councilmember Donnelly stated there is nothing permanent about any of this. The State could change everything next year. He understood the desire for long term cuts, but long term is hard to define. There is nothing permanent and nothing long term about any of this. The legislature will be completely different next year and we have no idea what they will do. He stated there have kind of been mixed messages as far as who should go and how many. All the people working for the City are here for a reason. As soon as you lose someone, things change, and then you have to re-hire someone; that costs and you lose the continuity and the morale. As far as the tax statement, what is in this budget will do that. It does not increase taxes and reduces $425,000. As far as trying to find a perfect long term fix, there isn't one. There are too many variables. Councilmember May appreciated the fact there is no perfect fix, but shouldn't we look at a little every year until things do turn around. We are not asking to fix the whole thing. Councilmember Fogarty asked if this budget eliminates two or three positions including the voluntary layoff. City Administrator Herlofsky stated the positions removed from this budget includes one retirement, one layoff, and Bill Weierke's position will work its way through the organization we will not replace the last person. The layoff is voluntary. The other positions noted for this meeting were two reductions to 32 hours and one for halftime. We still have the Police Sergeants willing to participate. Early on in the budget process, he told Council he would prefer to not lose any employees. He never promised anyone; he told Council. Regarding furlough, no one on management used the word furlough. He knew Council said no furloughs. This was the result of an employee being willing to work 32 hours. We thought if one will, others will also. We found a couple people willing to adjust their hours. This could be considered putting it off for another year. If things turn around in a couple years, he would rather use the people we have here rather than let people go. This was an attempt to meet Council's objectives. It did not hit exactly, but he tells people they are never to do exactly what he tells them, because we will both be sorry for it. It requires both parties to think of the best way. Council had the option at an earlier meeting to discuss which positions to take action on. He was still trying to gauge what five people want; not one, not two, but at least three out of five. Sometimes he is trying to make sure he has sufficient direction. This Council has been a true challenge to figure out exactly what everyone wants. Council was having the same issue from their side. Mayor Larson stated when we had the opportunity to take a vote at a Council meeting there was some misunderstanding there also. One year we were told one way and the next year another way. Council did have the opportunity, but the information given to us was mixed. If Council was clear on how things could work, the outcome would have been different. Councilmember Wilson stated Council provided information to staff on what areas to enhance and cut. It was the refusal from the City Administrator to act on that. He gave credit to Councilmember Donnelly to remind Council that it is not their role to micro-manage staff, but to give direction. At the last workshop Council had a very good discussion of the big picture. We know this is a tough decision, but this is a tough economy . We directed the City Administrator 5-19 Budget Workshop Minutes November 22,2010 Page 4 to make cuts. He felt the majority of Council agrees with what is presented other than staffIng. Councilmember Wilson suggested going through the three categories to get a consensus. Mayor Larson realized we cannot compare the City to a business, but businesses here have had to let people go. As revenues stop coming in, you have to make adjustments. We cannot tax our way out of this, but it feels like we are being asked to do that. If the City was a business and we had $1 million in department head salaries, for every $100,000 worth of salary, you want to make 10% on your money. In a private business you have to do $1 million worth of work. If you can't generate the $1 million you have to eliminate expenses. Unfortunately, the expenses are people. It has to happen. Our bond payment and debt is going up, our revenues are going down. No one wants to make the hard decisions, but someone has to. Regarding the voluntary reduction in hours, Mayor Larson would not accept that tonight. Council has been asking for long term fixes and this is not long term. This will get us to next year and that is not what Council is asking for. Unfortunately, the hard decision has to be made. Regarding the Sergeants contract, we did agree in closed session to negotiate that with them. He was in support of that, but was not in support of voluntary reduction of hours because it is not long term. Council has been asking since June for long term fixes. It seems we are fighting two different battles. He appreciated the City Administrator wanting to keep staff, but we can't keep the high salaries. Somewhere in there we have to make a reduction. Mayor Larson agreed with Councilmember Donnelly that we got the $425,000 reduction, but he also agrees with Councilmember Wilson and does not agree with how we got there. We will be sitting in this same position next June and sooner or later we have to address it. Council has asked to address it this year. If times get better and we do have to hire people, it does cost money, but we need to make the hard decisions now. Our expenses and debt are too far out of balance. The only option is to cut at City Hall or raise taxes, and he was not willing to raise taxes anymore. Councilmember Wilson stated if the next Council wishes to adopt the Deputy Registrar office, reductions in staff will be a silly idea. Mayor Larson stated we have to get the high salaries under control. He was worried we will not have enough money to run the City, the budget is so tight. Any issue during the year could throw it off. Even our fund balance is low. Regarding the three sections presented by staff, Councilmember Fogarty stated it is important to recognize we are % of the way there. We cannot fail to recognize there will be three positions not within the City next year. That is not a small reduction for a staff our size. Permanent cuts have been made. The City Administrator, staff and Council have done a lot of work. Building Permit number - Mayor Larson, Councilmember Fogarty and Councilmember Wilson agreed with the building permit number. Councilmember Wilson noted we have to be prepared for an up and down and we have been close on the building permit number. Councilmember May stated philosophically building permit revenue should be a contingency. It is money we don't know if it will come in; it's a projection. Councilmember Fogarty noted the City Attorney will tell us the number cannot be zero. City Administrator Herlofsky stated philosophically if you don't count it as revenue and leave it at zero and still want the same level of service, then we have to levy additional money to accomplish that task. Councilmember May stated then let's use last year's number. City Administrator Herlofsky stated in the past staff has recommended 5-20 Budget Workshop Minutes November 22,2010 Page 5 levying additional money for the fund balance which was a major concern of that Council. The same philosophy works; it is a matter of how you apply it. Interest Revenue - Staff provided a number of $50,000 which is an estimate. Mayor Larson stated the interest amount was at $250,000, then Council cut it to $180,000, now staff is recommending $200,000. Councilmember May noted there is a statement that the contingency from the position and pay reductions would make up the shortfall. City Administrator Herlofsky stated if Council decides to leave the levy where it is from September there will be a $40,000 contingency. Councilmember Fogarty was comfortable with the interest amount recommended. Position and Pay Increase Reductions - Mayor Larson did not accept this as it is not long term. Councilmember May also did not support this. Councilmember Fogarty suggested one more staff reduction. The fact that three people stepped up to prevent a reduction is not lost. There are three positions being cut for 2011. She hesitated with a fourth position. Councilmember Wilson stated in private business we would do what Councilmember Donnelly suggested which is to have a consultant come in and analyze the City. He agreed with Mayor Larson and Councilmember May that it needs to be long term. He did not agree with the willingness of staff to reduce hours. Mayor Larson stated in a business the Board of Directors would give direction and it would be followed. He appreciated the employees stepping up, but that is not what we asked for. Councilmember Donnelly was okay with what staff presented. It shows staff came together by taking less money and giving up hours. That is hard to ignore. There is nothing permanent about this. The bond payment goes up $250,000 next year so we will do this all over again. If you want long term, we should cut $500,000 more right now. We have the ice arena next year and bond payments up $250,000 next year. In two years 195th Street starts for another $500,000. We have long term serious issues. He is not qualified to determine if this is the right structure for the City. City Administrator Herlofsky has decided this is the right structure for the City and Council disagrees. So he suggested bringing in a consultant to do a study and determine the right structure. Until we come to an agreement we will not get anywhere. Our debt payment is up $562,000 this year and we are trying to absorb that without raising taxes and we are close. Mayor Larson and Councilmember Fogarty agreed with the Police Sergeants contract. Councilmember Fogarty stated we have a $79,000 hole to fill. City Administrator Herlofsky stated in 2011 as in 2010 and 2009 there will be some personnel changes. This allows us to get through one year with three positions going away. Councilmember Wilson stated either we accept the three positions or Council has to hand pick a position. We will not get a recommendation for a position. Or we can provide a number and this is the area to reduce. Councilmember Fogarty decided to agree with staffs recommendation. Councilmember May stated everyone in this room understands it is reality. She was disappointed that we have to look at department heads. She did not want to point to one of these people, nor should we. The whole thing about choosing a position is very concerning. When it came time to hiring a Finance Director, Council couldn't have anything to do with that. The City Administrator is fine with hiring. We have cut to the bear bones and there is no where else to look. All this work since June and we are going to accept this? Councilmember May said flat out no. She was disgusted with the whole process. She was here to advocate for the residents and we just cannot afford everybody. There is no more money. She apologized to the Police, but there is no savings there; 5-21 Budget Workshop Minutes November 22, 2010 Page 6 we are just spreading it out. Good people land on their feet and that is reality. City Administrator Herlofsky stated two people volunteered to take a 20% cut in pay and one said 50%. Councilmember May stated look at what we have to deal with next year. Not only are we rehashing what we are dealing with this year, we will have a whole new set of problems. Mayor Larson stated we will have to replace equipment that has been put on hold. Fire Chief Pietsch noted the Fire Department in three to five years will look at five to seven major vehicles at $500,000 - $1 million each. Mayor Larson stated to keep the ISO rating for insurance we have to update the equipment. We have to make hard decisions now. Councilmember May stated we probably will be faced with a tax increase, but now is not a good time. Councilmember Donnelly stated we cannot run this like a business. In business if we cannot afford the bridge, we let the bridge go back, but we can't. We have to tax to cover those decisions. There is no way we can cut enough people to cover the increasing debt in the future. We can lose a department head, but we cannot do that forever. Mayor Larson understood we cannot run the City like a business, but we can make business-like decisions. We have a lot of overhead. Mayor Larson asked if Council wanted to accept this as is, ask for an additional cut coming from a department head, or something else. We have to tell the City Administrator what we want and he will have to do it. Councilmember May thought we did a good of that at the last workshop. Mayor Larson thought we would see something different than what we have. Councilmember Wilson stated the question is if we make a recommendation will it fall on deaf ears again. Mayor Larson noted it is in the minutes from the last workshop that Council chose option 3 to eliminate two positions. That was not done. Councilmember Wilson stated however, these are additional cuts, we just don't like them. Mayor Larson stated option 3 was to eliminate additional positions, not reductions. City Administrator Herlofsky stated the reductions do equal one full- time equivalent employee. So it was one reduction in personnel. The whole group is made up of full-time equivalents. He tried to fmd a way to do it that would not be detrimental. If things get worse next year, we will go through this and find other ways to cut back on staff. Councilmember Fogarty felt it would not be appropriate for Council to name a specific position to cut. It has to be a management team position and the City Administrator has to decide where it would be least detrimental. Council reached a consensus on this. Those who volunteered to reduce hours should be told thanks, but that is not what Council wants. Councilmember May asked about the recommendation to keep the levy the same amount. Mayor Larson stated as tight as this budget is, we may need the tax money. Councilmember May asked if the process is flawed if we choose a number we cannot exceed, but that is the number. The number is never lower. Councilmember Wilson stated it cannot be about the number. It has to be about a bigger plan for what we will do financially. If the bucket of money does not accomplish the equipment repair, or the reserve money if interest payments do not come in, you do not see the priorities in the number. We gave a recommendation and we will be comfortable with whatever that number comes out to be. Councilmember May noted if the savings come in higher, staff still wants to keep the levy at the higher number. City Administrator Herlofsky stated it would be advisable for staff to give Council that option. We do not have to reduce the full amount. Finance Director Walters stated it amounts to about $.25 on taxes, but it would help to have that contingency. A line item can be shown in the budget for contingency. 5-22 Budget Workshop Minutes November 22, 2010 Page 7 City Administrator Herlofsky stated all Administrators are concerned with what has happened with the State in the last couple years with their financing. One thing the new legislature can do is put restrictions on Cities to raise their levy by a reasonable amount. The lower you put your levy, the smaller the base, and the fewer resources you will have available in the future. Mayor Larson asked if Council wanted to recommend reducing a department head and keep the levy at 3.73%. Councilmember Wilson wanted to eliminate the reduced hours in favor ofa permanent management staff reduction. Mayor Larson wanted management because of the larger salary and line staff has been cut already. Councilmember Wilson stated if we direct the City Administrator to reduce management staff, whatever the number comes out to be, we have to be fme with that number. Councilmember Donnelly stated the recommendation Council gives, will not change the taxes for people, it will hurt morale of City employees because they collectively came up with a way to meet the number we asked. Our goal is to affect the taxes and we will achieve that with this proposal. He would agree with eliminating a staff position if we have done it in a managerial way; if we evaluate the structure of the City and someone says this is way out of line. He would agree with this if it was done objectively. He felt we will need to evaluate the structure for next year anyway. Bring in a third party to evaluate the structure. If that consultant says there is way too many of one group, maybe they will find a better way to run things. We have a proposal that will achieve the impact on the resident's tax statements that we agreed to. He commended the employees for pulling together to achieve that number. Ignoring the employee input and sacrifices is not a good thing. Councilmember Wilson stated the recommendation for 32 hour weeks came about in the last two weeks as a result of the City Administrator not liking the recommendation Council made two weeks ago and then trying to figure out a different way to arrive at a solution that would be workable for Council. Council's direction is: - Agree to the building permit revenue of $340,000. - Agree to $200,000 for interest revenue. _ Direct the City Administrator to reduce one management staff position and eliminate the language regarding working reduced hours. - Agree with the Police Sergeants contract.c- Accept whatever number these directives come out to be. MOTION by Fogarty, second by Wilson to adjourn at 7:59 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 5-23 76 City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.cLfarmington.mn.us TO: Mayor, Councilmembers and City Administrator ffi, Teresa Walters, Finance Director \J FROM: SUBJECT: October Financial Report DATE: December 6, 2010 Enclosed is the financial report for the months of January through October 2010. The report shows revenues and expenditures for 83% of the year. Below is an explanation for variations from the budget. If you have any questions prior to the meeting, please e-mail me at twalters@ci.farmin~on.mn.us or call me at 651-280-6880. General Fund Revenues Property taxes Amount Received 51.2% Licenses 95.12% Permits 129.60% Fines 49.51% Intergovernmental 109.82% Reason for Variance We received the first half of our property taxes in June and July. The balance will be received in December. License revenue is higher due to the payment of the fourth quarter liquor licenses. Additional license revenue (tobacco, new liquor licenses, etc) should bring this up to 100% by the end of the year. The majority of this line item is building permit revenue. Bldg permit revenue is at 140% of the budget, or $90,420 over the budget. Court Fines are below the projected budget. The fines have been reviewed and lowered for the 2011 budget. Police and Fire Aid receipts were sent to us in October. 6-1 Charges for services 46.62% Franchise Fees 100.00% Investment Interest 41.84% Expenditures Historical Preservation 168.90% Fire charges are not received until the end of the year. Police service charges are at 53%. Payment received. Interest rates are difficult to predict. The two year treasury rate is ~%. In October, the General fund's cash balance was low ($195,000). Cash is allocated to the funds that have balances. We received less interest overall this month than prior months because we did not have any investment calls. January-June shows budgeted revenues, not actual. In the past, the procedure was to book budgeted revenues, then adjust the revenue to actual at the end of the year. Due to the large drop in interest rates, we now book actual interest on a monthly basis. We have two months of interest revenue to collect. At the end of the year, we also mark our investments to market value; this should add interest revenue. Revenue from a matching grant ($6,000) was received in October. Although The Historic Preservation is $5,429 over budget. However, when netted with the grant, it brings this item under budget. Overall General Fund Revenues are at 56.57% of the budget. Some of the revenues (police, fIre, and taxes) do not come in until later in the year. Without taxes, General Fund revenues are at 78% of the budget. Due to employee's careful management of the budget, expenditures are slightly lower than anticipated at 79.33% of the budget. 6-2 Special Revenue Funds: The Special Revenue funds are established to account for specific revenue sources (grants) or to finance a specific activity. Assistance may be needed from the general fund or another designated fund to operate. The Recreation and Ice Arena funds continue to operate with a deficit fund balance. The actual deficit balance in the Recreation Funds (RRC, Senior Center, and Pool) at the end of 2009 was ($229,946). The actual deficit in the Ice Arena Fund was ($178,985). The following is a summary of each special revenue fund: EDA: In October 2010, the EDA was combined with the HRA. At the time it was combined, the BRA had a negative fund balance ($533,732). At the end of September, the EDA had a positive fund balance in the amount of $306,705. With the added EDA transactions this month (Revenues and expenditures), this brings the EDA fund balance to ($237,664). Rambling River Center Operations (Senior Center): The Senior Center is funded by a $155,000 annual transfer from the General fund. The Senior Center started the year with a negative fund balance ($75,212). They have reduced this to ($37,669) as of October 2010. Rambling River Center Renovations: The Rambling River Center anticipates receiving a CDBG grant in the amount of $65,000 in November. This, along with the donations should off-set the renovation costs. Future donations have been pledged and will be received over the next four years. The $20,000 transfer- in is from the General fund. This was transferred to the Storm Water Trunk fund to repay an inter-fund loan. The RRC started the year with a negative fund balance ($176,423). The current fund balance is ($241,731). Next year when the renovation project is complete, the RRC operations will be combined with the renovations. Swimming Pool: The Swimming pool is funded by a $75,000 transfer from the Liquor Stores. Without the transfer, the pool would have had a deficit balance of $37,232. With the $75,000 transfer, the pool added $37,768 to their fund balance bringing it to $59,457 as of October 2010. Ice Arena: The Ice Arena expenditures exceeded revenues by $147,020 for the year. This deficit adds to the negative fund balance at the end of2009, increasing the deficit to ($326,005) at the end of October. November and December revenues will help to reduce this deficit. 6-3 Below is a list of the discrepancies in the Special Revenue funds along with reasons for the variance from the 83% year-to-date. Revenues Amount Received EDA 311.49% Park Improvement 223.05% Pool 104.38% Expenditures EDA - Transfers 100% Rambling River Center Renovation 420.79% 6-4 Reason for Variance Higher year-to-date revenues than budgeted are due to grants and the sale of property. The EDA shows negative revenue in October due to the following: $5,000 in Escrow funds was received in error in August. It was returned in October. Interest not earned by the EDA was reversed out in October. The main reason for the additional revenue is that the developer of Riverbend 3rd, pre-paid all of their development fees. All pool revenues (including transfers from the liquor store) have been received for the year. The balance of the HRA was transferred to the EDA when the two funds were combined. See EDA above. In November, the City will receive a Community Development Block Grant in the amount of$65,000 to help off-set some of the renovation costs. Enterprise funds: The Enterprise funds are self supporting and do not need financial assistance from the General fund. Liquor: Liquor Operations Staff is continually making every effort to reduce costs through appropriate purchasing, staff schedules and other controllable expenses. As a result of this, revenue exceeded expenditures by $43,733 this month. The liquor stores transferred $5,525 to the General Fund in October. Without transfers the Liquor Operations would have seen an overall profit of $53,602 for the year (as of October 2010). Overall the Sewer. Solid Waste. Storm Water. and Water enterprise revenues are exceeding expenditures for the year. Transfers are to the General fund for Administrative costs and to the Debt service fund to pay for a bond. Street Light Utility: Street light utility revenues were received for the first time in March 2010. The fund currently has a deficit balance in the amount of ($31,454). This is a result of Electric bills and equipment repairs costing more than they have in the past. Anticipated revenue for the year is $151,610. Expenditures are approximately one month behind. If we have no more repairs and are only paying for electric bills, we anticipate another $30,000+/- in expenditures before year end. Graph: The graph shows that overall 2010 YTD fund balance below the 2009 fund balance at this time. This is a result of having three payrolls in October. This should balance out in November and become more in-line with November 2009. In order to operate with existing cash in the General fund, the City's goal should be to maintain not only a positive fund balance throughout the year, but also a fund balance that falls within the State Auditor's recommended 35-50%. Our current fund balance was at 24.9% at the end of 2009, the highest point of the year. From the graph, you can see that we will have a negative cash balance in November and December prior to receiving our Tax payment for the year. Respectfully submitted, Teresa Walters Finance Director 6-5 CD It) CO ml::~ m"r--:~ <'>coo) ~O)O N'rC\.i 000 RF=:'R ~ 0) 0 ""'It) It) m<<ir--: I'-CO<'> ~e~ molO S;:g~ ....: u; aJ It) 0) CO e'" ~"'<'> ~1t)1t) O)CD'" ...ttO~ ~<'>I'- '" CD 0)1'-0 ~!3:g Nmr-: co CD CD ,.........or: ~ E E :J (/J 10 CD "C :J m ~~~ ~"'<'> a:f ci of ~COI'- C'!. 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Fax 651.280.6899 www.ci.farmington.mn.us Mayor, Councilmembers, City Administratof) Teresa Walters, Finance Director \!!J TO: FROM: SUBJECT: Tort Liability Limits DATE: December 6, 2010 BACKGROUND INFORMATION: The City of Farmington must annually determine if they wish to waive the statutory tort limits that an individual would be able to recover from the City in the event a single occurrence would result in an insurance claim that would exceed the $500,000 limit. This decision will define the limits that an individual will be able to recover in the event that the City is found negligent. It provides a greater level of flexibility in determining the amount of coverage when dealing with a resident in the event of a catastrophic loss or personal injury situation. If the City does not waive the limits, an individual is limited to $500,000 on any claim in which injury is sustained, and the City is found negligent. If the City waives the limits, an individual could recover up to $1,500,000 for a single occurrence on a claim. According to our insurance agent who works with the League of Minnesota Cities, very few cities waive the limits. BUDGET IMPACT: The 2011 Budget includes funding for insurance premiums. If the council decides to waive the limits, it would cost the City an additional $8,766. RECOMMENDATION: Staff is recommending Council not waive the liability limits for the 2011 premium year since waiving the liability limits would increase our premium and the amount the City would have to payout in the event of a lawsuit. 7-1 7c! City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.fannington.mn.us TO: Mayor, Councilmembers and City Administrator @ Tina Hansmeier, Economic Development Specialist FROM: SUBJECT: 2011 CDBG Application and Reprogram Unspent Funds DATE: December 6, 2010 INTRODUCTION The City has the opportunity to apply for approximately $47,700 in Community Development Block Grant (CDBG) funding for Fiscal Year 2011 [July 1,2011 through June 30, 2012]. A completed application must be submitted to the Dakota County Community Development Agency (CDA) accompanied by an approved City Council Resolution by December 15,2010. DISCUSSION Every CDBG-funded activity must qualifY as meeting one of the U.S. Department of Housing and Urban Development's (RUD) national objectives (with the exception of administration and planning). Generally the national objectives include: Benefiting low- and moderate-income (UM) persons, or Preventing or eliminating slums and blight. Reprogramming of Unspent Funds Attached for your information is a status report of fund balances illustrating the activities funded in previous years (Exhibit A). The CDA has brought to the attention of all Cities that funds allocated in 2006 or earlier need to be spent down or reprogrammed to an activity that has a higher probability to be used by June 2011. If the funds are not used, the CDA has the ability to reallocate the funds to the County's pool ofCDBG. Taking this information into account, staff recommends reprogramming 2004 funds to Residential Rehab because this activity typically has a higher demand than other activities and a higher probability of being used. The reprogramming of funds can be done administratively by the CDBG Project Manager and the City's Finance Director. Residential Rehabilitation/Home Improvement Loan Program The Residential Rehab activity funds the CDA's Horne Improvement Loan Program which assists low-to-moderate-income homeowners make repairs and improvements to their homes. Funds are commonly used for roof replacement, furnace replacement, electrical and plumbing repairs, insulation and special needs improvements. The CDA administers this Program. 8-1 2011 CDBG Staff recommends allocating 2011 CDBG to the following: · 60% ($28,620), Micro-enterprise Assistance (rent assistance) · 40% ($19,080), Public Service (new part-time Rambling River Center staff position) Micro-Enterprise Assistance/Rent Assistance The CDA is supportive of allowing CDBG funding for micro-enterprise assistance, which happens to be one of the three eligible uses already defined in the City's current Business Development Grant (BDG) program. As you may recall, the City's BDG can provide one more grant at the maximum grant amount before the program funds are depleted. It was envisioned that this grant program would be terminated once that happened. Instead, staff proposes to modify the program by eliminating the non-eligible uses of grant funding and to allocate a portion of 20 11 CDBG to fund the eligible use of micro-enterprise assistance. Micro- enterprise is defmed as a business having five or fewer employees and is looked at as a new start-up that has potential to have a future in ownership. The assistance provided would help offset the cost of rent for a period of one year. The City of Farmington would administer this program. Public Service/New Part-Time Rambling River Center Staff Position CDBG funding can be used to pay ALL personnel costs associated with a new part-time staff position(s) as long as the position is tied to a public service that is either l)a new service or 2) a quantifiable increase in the current level of service. The increased level of service proposed includes extending the building's hours of operation to be open later into the evening and on weekends. The primary responsibility envisioned for this new position would be to facilitate programs and services offered during extended building hours. The City of Farmington would administer this activity. Please see more details regarding this request for Rambling River Center CDBG funding on the enclosed memorandum provided by Randy Distad and Missie KoWbeck (Exhibit B). Please note: Once a new or expanded public service is funded with CDBG, it can continue to be funded at the same service level from year- to- year. Enclosed is a revised status report ofCDBG activities and balances showing staffs recommendation for 2011 (Exhibit C). ACTION REQUESTED Approve Resolution for application of CDBG funding for Fiscal Year 2011. Respectfully submitted, Tina Hansmeier Economic Development Specialist 8-2 CJ) w o z ~ <( lD C Z ::J u.. ~ o a.. w ~ CJ) ::J !;;: I- CJ) e>~ lD' co. O~ , Zo OM l- e> Z :a: ~ <( u.. ~ s:: Q) (,) ... Q) a.. '#.'#.'#.'#.'#. 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ClOI'- enO)o CD ,~ ~ CD~ (0 ,- OOC') ;;co ~ c( w >- >- lD C w C Z -t-w "'w me>~ >- c w >-::J I- elDz .J.JW <(<(0 I-I-~ OOW 1-1-0.. ,c)( . 4 C o :.p co '- ..... .!a .5 E "C co ..... U <1l 'e- 0. <1l "C ::l 13 C >- co E en <1l U C co ro .0 "C C ::l .... <1l .c I- en I'- ~ (l) ~ o Z o :;:; 1lI ~ s:: 3: o "C "C s:: (l) 0. CJ) o .... o N >- u.. 8-3 6--)t. .13 City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ciJarmington.mn.us TO: Tina Hansmeier, EDA Specialist Randy Distad, Parks and Recreation Direct~ . Missie Kohlbeck, Senior Center Coordinator fl~ V FROM: RE: Request for Rambling River Center Community Development Block Grant Funding DATE: November 22, 2010 BACKGROUND: Beginning in 2000 and ending in 2030 it is estimated that Minnesota will see an increase from 12.1 % to 24% in the total population being 65 years and older. This means about 1 in 4 Minnesotans will be over age 65 in 2030. The City of Farmington recognizes this change is coming and is prepadng to meet the new challenges it will face with an aging population. Perhaps the most significant way the City has prepared for the increase in an aging population was when it approved having the Rambling River Center move its operations into the , former City Hall building at 325 Oak Street in October 2009. This move entailed an extensive renovation of the building to meet the needs of an increasing aging population. This new larger facility has provided the Rambling River Center with not only new opportunities, but has also created new challenges. DISCUSSION: 70% of senior center membership nation wide is women. The Rambling River Center is no exception. 86% of the membership is women and 69% of total membership is single women. This has provided the City with opportunities to expand programs and services to meet the needs of this demographic group. Since moving into the renovated building, new opportunities to attract older adults and continue serving the current users have surfaced including: (\) Serving as a gateway to community services such as public benefit counseling, aging at home services, and support for caretakers. o Programs to support and enhance independent living. o Expanded fitness center, which provides new opportunities for an increase in fitness and wellness. o Increased meeting space providing more social opportunities. o Increased class room space in which to expand educational programs. () Increased space for large gatherings and special events. While the opportunities are endless, the new facility has created the following new challenges: o Need for additional personnel to expand building hours for its members and the community so they can be more active physically, participate in educational classes, and rent space during both day and evening hours. 8-5 o Accommodating the increased number of fitness center users requesting weekend and evening hours since the fitness center is currently only open Monday through Friday from 7:30 a.m. until 3 :30 p.m. o Meeting the need of offering programs in the evenings to older adults and to the community. Because of the new challenges raised, a request is being made to allow funding from the Community Development Block Grant (CDBG) program to cover the cost of a new part time position at the Rambling River Center. The new part-time position being created would provide the City with an opportunity to expand the evening and weekend hours that the Rambling River Center is open to not only its members but also to the community. As a result of the expanded evening and weekend hours, the outcome in progrRmming and benefits these programs will provide include: (') Increased health and wellness in older adults through expanded fitness center hours. (') Increased knowledge and understanding of medical conditions in older adults by offering educational programs in such areas as arthritis, diabetes, cancer and alzheimers. ('J Offer new support programs/groups for families members who are facing medical conditions such as alzheimers, cardiac recovery and stroke recovery and which could be modeled similar to the alcoholics anonymous support group. o Increase programs for other economically challenged groups such as single parent households who are facing financial hardships. This would include grandparents raising grandchildren. o Increase the number of health screenings in older adults whose schedule may not allow them to attend screenings during the daytime hours. These screenings could be a preventative measure for older adults by making them aware of a medical condition they have such as high blood pressure, diabetes and coronary issues. Another preventative measure to be offered during evening hours could also include providing flu shots by a medical third party. The part-time position would be primarily responsible for facilitating programs and services when the building is open. It is envisioned that this part time position may include some bus transportation for evening programs by utilizing a City bus to transport community members to and from the Rambling River Center. This bus service would eliminate a transportation barrier for those who no longer drive or do not have a ride to the Rambling River Center for evening and/or weekend programs. This would allow older adults to maintain independence longer in their home and reduce the dependence on government social programs. The desired ovtcome of being able to offer expanded programs at the Rambling River Center from the hiring of an additional part time staff position is to increase the social network while increasing the ability to function independently. The part time position would be fully funded by CDBG funding and the cost of this position could be funded on an annual basis through the CDBG program. Expanded programs in the area of youth and teens could also be an outcome of hiring an additional position at the Rambling River Center. After school tutoring and a place to socialize with other youths in a safe and nurturing environment for youth will provide a good return on the community's investment. The focus would be on youths who come from a working single parent household. ACTION REOUESTED: To move forward with requesting approval from the Economic Development Authority and from the City Council to request Community Development Block Grant (CDBG) funding that would allow an opportunity to hire additional Rambling River Center personnel (part-time position(s)) at a not to exceed amount of $19,080. 8-6 en w () z :5 <( iii aJ"Cl Cl c: z.E! ;:)... u. lii Q. Ul I- c: 0:: :2 0- a.. 0 wc) 0:: .: en E ;:) E !;;c ~ I-C) en e CJQ. aJ ~ Cl"Cl () c: Z ra Ot) I- Q) CJ :2 z[ :!!: .. 0::.... <(~ U.N en 0 <0 0 0 0 0 II) 0 0 O'! 0 0 0 C! 0 iU ai 0 M 0 0 0 0 M r-.. 0 M .... N 0 CO N ... en~ ~ "=t ~ ~ 0 0 .... 0 en M N r-.. CO iii en cD I- r-.. II) .... .... N <0 .... r-.. tI")- tI")- tI")- tI")- tI")- tI")- tl")- N tI")- 0 0 0 (0 C! 0 C! 0 (j) 0 0 M .... N CO 0 .... ~ 0 ~ C") 0 en ..- N 00 r-.. 0 N .... 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Cl w ro > Q) c ro OJ 0 >. ;:) I- 'ti 1:l ... a> Q) .c :;:; L- a> fJl c: () en - lJl Z c OJ 0::: fJl W ...J ...J W a> E a> I L- .~ 1:l OJ C 0 ,Q <( ~ () 'en E "en .. :c I- 0:: .... 0 c OJ 0 fJl ::J OJ :2 0 0 w 0::: () C2 CO ~ en a.. l- I- a.. "Cl Q) Ul o Q. o .. a.. (;.'x, C c 0 :;:; CO L- .... ,~ c "E 1:l CO .... 0 OJ '0' L- 0. OJ 1:l ::J t5 ,5 >. co E fJl a> u c co en ro r-.. ..c -r:i 1:l C ::J .... OJ .c I- Q) ... o z o :0:; ra 0:: c: 3:: o "Cl "Cl c: Q) Q. en o .... o N >- U. 8-7 RESOLUTION NO. R63-10 APPROVING THE APPLICATION OF THE CITY OF FARMINGTON FOR FISCAL YEAR 2011 DAKOTA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING Pursuant to due call and notice thereof, a regular meeting ofthe City Council of the City of Farmington, Minnesota, was held in the Council Chambers of said City on the 6th day of December 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: WHEREAS, the City of Farmington is a participating jurisdiction with the Dakota County CDBG Entitlement Program for Fiscal Year 2011 (ending June 30, 2012); and, WHEREAS, the Dakota County Community Development Agency (CDA) is a Subgrantee of Dakota County for the administration of the CDBG Program; and, WHEREAS, the Dakota County CDA has requested fiscal year 2010 CDBG applications to be submitted by December 15,2010, based on an allocation of funds approved in the Community Development Implementation Plan. NOW, THEREFORE, BE IT RESOLVED that the City of Farmington hereby approves the following: 1. The Fiscal Year 2011 CDBG application is approved for submission to the Dakota County CDA. 2. The City Administrator for the City of Farmington is authorized to execute the application and all agreements and documents related to receiving and using the awarded CDBG funds. 3. The Dakota County CDA is designated as the administrative entity to carry out the CDBG program on behalf of the City, subject to future Subrecipient Agreements that may be required for specific CDBG-funded activities. This resolution adopted by recorded vote of the Farmington City Council in open session on the 6th day of December 2010. ~~- Mayor Attested to the "??..p~ day of December 2010. SEAL 7e. City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.fannington.mn.us TO: Mayor and Councilmembers FROM: Peter J. Herlofsky, Jr.(;J; City Administrator l7 SUBJECT: Fire Fighting Service Agreement DATE: December 6, 2010 INTRODUCTION Staffhas been working with the Castle Rock Town Board on revisions to the Fire Fighting Service Agreement with the City of Farmington. DISCUSSION The Castle Rock Town Board approved the attached Fire Fighting Service Agreement on November 9, 2010. The term of the agreement is January 1,2011 to December 31, 2013. The amount of payment to be received by the City is shown in Exhibit A. These amounts were agreed upon so both entities could have a set amount to include in their budgets. BUDGET IMPACT Payments to the City of Farmington: 2011 $49,868.99 2012 $51,365.06 2013 $52,906.01 Castle Rock Township will be billed quarterly. ACTION REQUESTED Approve the attached Fire Fighting Service Agreement with Castle Rock Township. Respectfully submitted, Peter J. Herlofsky, Jr. City Administrator 9-1 Fire Fighting Service Agreement THIS AGREEMENT, made and entered into this ~ day of Jv~ 2010 by and between the CITY OF FARMINGTON, a Municipal corporation located in Dakota County, Minnesota (hereinafter referred to as "City") and the TOWN OF CASTLE ROCK, a political subdivision located in Dakota County, Minnesota (hereinafter referred to as "Town") \ WHEREAS, the Town deems it advisable to have available for the benefit of the residents of the Town, services of the Farmington Fire Department; and, WHEREAS, the electors of the Town have, pursuant to law, made the necessary arrangements to provide a fund out of which to pay the. expenses of fire protection for the Town; and, WHEREAS, each of the parties has, by appropriate action, authorized its officers to enter into this Agreement for the furnishing of such fire fighting service. NOW, THEREFORE, it is mutually agreed by and between the parties hereto, as follows: 1. TERM. This Agreement shall define the terms and conditions of the relationship of the Town and the City from and after the first day of January, 2011 through December 31, 2013, or until terminated as provided for herein. 2. CITY RESPONSIBILITIES A. The City agrees that it will, through its Fire Department, make all reasonable efforts to respond to all fire calls and fight fires, with the minimum appropriate personnel and apparatus as determined by the decision of the City's fire chief or other ranking officer or official in charge of the fire department at the time, at any place within the following areas lying within.the Town: Sections 3, 4, 5, 6 (portion), 7,8,9, 10, 15, 16, 17, 18, 19,20,21, W ~ Section 28,29,30,31 Township of Castle Rock; provided however, that roads and weather conditions must be such that, in the judgment of the Fire Chief or other Fire Department officer in charge, whose judgment shall be final, the fire run can be made with reasonable safety to men and equipment. B. While every reasonable effort will be made to respond to fire calls and fight fires as provided above, the City, through its Fire Department, shall be under no obligation to respond to fire calls received while then engaged in responding to a fire call or fighting one or more fires. The Town shall indemnify and hold harmless, and defend the City, its officials and employees against any and all liability, loss, costs, damages, expenses, claims or actions arising out of or by reason of the failure of the City's Fire Department to attend a fire, or to put out a fire or for damage to property caused by a fire except for claims arising as a result of gross negligence by the City's Fire Department in the execution, performance, or failure to adequately perform the City's obligations pursuant to this Agreement. c:\users\jane\appdata\loca1\microsoft\windows\temporary internet files\contentoutlook\2bar29r2\fire fighting service agreement cast1e rock ,- -~..... ~.. .. 9-2 C. The City will provide weekly updates of fire activities. 3. TOWN RESPONSffiILITIES A. Services. The Town agrees to engage the services of the City for fire suppression within the Town during the term of this Agreement. B. Billing and Payment. The Town agrees to pay the City for its services during the term of this Agreement in accordance with Exhibit "A." A statement for services shall be provided to the Town on a quarterly basis and forwarded to the Town for payment. The Town shall pay for fire services within thirty (30) days after billing by the City. 4. TERMINATION. This Agreement may be terminated by either the City or the Town by giving the other party at least one hundred eighty (180) days prior written notice of such cancellation. 5. AMENDMENT. This Agreement may be amended at any time by the mutual agreement of the parties. Any such amendment shall be in writing and will be attached to this Agreement. 6. PRIORITY OF RESPONSE. The Town acknowledges that the City may enter into contracts with other governmental units or private parties to provide fire protection services. IN WITNESS WHEREOF, each of the parties hereto have caused this instrument to be executed on its behalfby its respective officers. CITY OF FARMINGTON CASTLE ROCK TOWNSHIP BY: Il~~r/ ~~ q/b BY: A,A.P ~ c:\users\jane\appdata\locaI\microsoft\windows\temporary internet files\contentoutlook\2bm29r2\fire fighting service agreement castle rock (final)09 10.doc Exhibit 'A' Fire Fighter Service Agreement Castle Rock Township Revised Castle Rock Township Payment to Reduction 22.20% Payment to Years City of Farmington City of Farmington 2011 $ 64,098.96 $ 14,229.97 $ 49,868.99 2012 $ 66,021.93 $ 51,365.06 2013 $ 68,002.59 $ 52,906.01 9-4 H:\Fire\2010\Exhibit A Castle Rock Revision) 7-F City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.cLfannington.mn.us FROM: Lisa Shadicl{, Administrative Services Director () TO: Mayor, Councilmembers, City Administrator SUBJECT: Various Licenses and Permit Renewals DATE: December 6, 2010 INTRODUCTION/ DISCUSSION I i ': Per City Code the City Council has the authority to approve both On-Sale and Off-Sale Beer Licenses and Cigarette Licenses. The following establishments have submitted their applications for renewal: Beer On-Sale - Weng's Kitchen, 115 Elm Street Ugly Mug, 18450 Pilot Knob Road Beer Off-Sale - Northern Tier Retail, dba Super America, 18520 Pilot Knob Road Cigarette License - Northern Tier Retail, dba Super America, 18520 Pilot Knob Road The appropriate forms, fees and insurance information have been submitted with the applications. The applications have also been reviewed and approved by the Police Department. BUDGET IMPACT The fees collected are included in the revenue estimates of the 2010 budget. ACTION REOUlRED Approve Licenses for the above mentioned applicants. Respectfully submitted, ~i~~ ~ /~ I ~./" t7ft/~#<-f/"l '4/~47~~. Lisa Shadick, CMC Administrative Services Director 10-1 3 City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 280-6800 Fax (651) 280-6899 www.ci.farmington.mn.us /"/ TO: Mayor, Councilmembers, and City Administrator ( tit , /." tV FROM: Brenda Wendlandt, Human Resources Director \,.,. SUBJECT: Labor Negotiation Settlement - Farmington Police Sergeants Association DATE: November 15,2010 INTRODUCTION This memorandum has been prepared to update Council on the status of the City's discussions with the Police Sergeants regarding amending their collective bargaining agreement. DISCUSSION The City met with the Farmington Police Sergeants Association. regarding their collective bargaining agreement and reached an agreement to amend their 2009-2011 collective bargaining agreement effective January 1, 2011. This agreement amends the current wage provisions and extends the collective bargaining agreement through 2013. The current contract provided a three and ,one half percent (3.5%) increase in 2011. The amended agreement provides for a one and three quarter percent increase (1.75%) in each ofthe three years ofthe contract. The City will continue to contribute a flat rate amount for group insurance provided by the City; and the insurance contribution will equal fifty percent (50%) ofthe increase or decrease ofthe mid-level plan. BUDGET IMPACT As a result of this settlement, the costs negotiated with the Farmington Police Sergeants bargaining unit result in a decrease in the 2011 budget. ACTION REOUESTED Adopt the attached resolution ratifying the collective bargaining agreement for the police sergeants. Respectfully submitted, , / ,..' #/" C' I -;,1, J.I...t*:I'~.4,~;1..M./ ut.4i~,. Brenda Wendlandt, SPHR Human Resources Director cc: file 11-1 RESOLUTION NO. R64-10 A RESOLUTION APPROVING WAGE ADJUSTMENTS BETWEEN THE CITY OF FARMINGTON AND THE FARMINGTON POLICE SERGEANTS ASSOCIATION FOR THE CONTRACT YEARS 2011 THROUGH 2013. 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 6th day of December, 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: WHEREAS, the City of Farmington recognizes the Farmington Police Sergeants Association as the exclusive bargaining representative under M. S. Chapter 179A, for the police sergeants classifications identified in the collective bargaining agreement; WHEREAS, the City has negotiated in good faith with representatives of the Farmington Police Sergeants Association for the purpose of reaching an amended and extended collective bargaining agreement for the contract years 2011, 2012 and 2013; and WHEREAS, the settlement terms have been successfully negotiated between the City and the membership of Farmington Police Sergeants Association in accordance with procedures established by law. NOW, THEREFORE, BE IT RESOLVED that the City Council of Farmington, Minnesota approves the following: 1) Amended the 2011 wage adjustment from three and one-half percent (3.5%) to one and three-quarter percent (1.75%) effective the 1 sl day of January, 2011. 2) A one and three-quarter percent (1.75%) wage adjustment effective the 1st day of January, 2012. 3) A one and three-quarter percent (1.75%) wage adjustment effective the 1st day of January, 2013. 4) The City contribution will be adjusted by an amount that equals fifty percent (50%) of the increase or decrease of the mid-level plan. Adopted by the Farmington City Council this 6th day of December, 2010. ~~- Mayor Attested to the ~-fh day of December 2010. ...-/"'~ / ,/ SEAL 7;) City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn.us TO: Mayor, Council and City Administrator (j Tim Pietsch, Fire Chief FROM: SUBJECT: Accept Donation DATE: December 6, 2010 INTRODUCTION: At the 2010 Minnesota Chief's Conference, Clarey's Safety Equipment held an open house. Several members from Farmington attended. Farmington Fire was chosen to win the grand prize, a new Cardiac Science AED defibrillator. DISCUSSION: Cardiac Science donated the item as a give away to Clarey's Safety Equipment. The only stipulation was that whoever won the prize had to use it on their department. I met with Anne Clarey-Lumby from Clarey's and Matt Lese from Cardiac Science to discuss the new unit along with the associated training. Unit has been received, cost is around $1,300.00. ACTION REQUESTED: Adopt resolution accepting donation from Clarey's Safety Equipment. Respectfully Submitted, Tim Pietsch Fire Chief 12-1 RESOLUTION No. R65-10 ACCEPT DONATION OF A CARDIAC SCIENCE AED DEFIBRILLATOR 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 6th day of December at 7:00 p.m. Members Present: Members Absent: Larson, Donnelly, Fogarty, May, Wilson None Member Fogarty introduced and Member Wilson seconded the following: WHEREAS, Clarey's Safety Equipment has donated a new Cardiac Science AED defibrillator to the Fire Department; and, WHEREAS, it is in the best interest of the City to accept such donations. NOW, THEREFORE, BE IT RESOLVED that the City of Farmington hereby accepts with gratitude the generous donation of a new Cardiac Science AED defibrillator. This resolution adopted by recorded vote of the Farmington City Council in open session on the 6th day of December 2010. ~~/~ Mayor Attested to the ?J-Ih day of December 2010. Q- SEAL -~ - ~' City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ciJannington.mn.us TO: Mayor, Councilmembers and City Administrator it Randy Distad, Parks and Recreation Director \j Missie Kohlbeck, Senior Center Coordinator FROM: SUBJECT: Adopt Resolution Accepting Donations to the Rambling River Center DATE: December 6, 2010 INTRODUCTION Two donations were recently made to the Rambling River Center. DISCUSSION A donation in the amount of $250 has been made to the Rambling River Center Construction Project by Don and Peg Davidson. A donation of soup valued at $100 has been made by Pizza Man for a recent Soup Luncheon event at the Rambling River Center. Staff will communicate the City's appreciation on behalf of the Council to Don and Peg Davidson and Pizza Man for their generous donations. ACTION REQUESTED Adopt the attached resolution accepting the donation of$250 from Don and Peg Davidson to the Rambling River Center Construction Project and $100 from Pizza Man for the Soup Luncheon event held at the Rambling River Center. Respectfully Submitted, Randy Distad Parks and Recreation Director Missie Kohlbeck Senior Center Coordinator 13-1 RESOLUTION No. R66-10 ACCEPT DONATIONS 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 6th day of December, 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: WHEREAS, a donation in the amount of $250 has been given to the Rambling River Center by Don and Peg Davidson to be used towards the Rambling River Center's Renovation Project; and, WHEREAS, a donation valued at $100 was given to the Rambling River Center by Pizza Man for the Soup Luncheon event; and, WHEREAS, it is in the best interest of the City and required by State Statute to accept such donations. 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Fax 651.280.6899 www.ci.farmington.mn.us TO: Mayor, Councilmembers, City Administrator () FROM: Lisa Shadick, Administrative Services Director SUBJECT: 2011 License Renewal Public Hearing DATE: December 6, 2010 INTRODUCTIONIDISCUSSION Per City Code, a public hearing must be held to issue or renew On-Sale Wine Licenses. Weng's Kitchen at 115 Elm Street and the Ugly Mug and 18450 Pilot Knob Road has submitted applications for the renewal of an On-Sale Wine License and they have been reviewed and approved by the Police Department. BUDGET IMPACT The fees collected are included in the revenue estimates of the 2010 budget. ACTION REOUlRED Approve the On-Sale Wine Licenses for Weng's Kitchen and the Ugly Mug. Respectfully submitted, ~/l~ Lisa Shadick, CMC Administrative Services Director 15-1 Ic~ City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.miJ..us Mayor, Councilmembers, City Administrator a Kevin Schorzman, P .E., City Engineer Change Order #3 and Final Pay Request-195th Street Extension Project TO: FROM: SUBJECT: DATE: December 6, 2010 INTRODUCTION Council awarded the 195th Street Extension Project at the June 2, 2008, City Council meeting. The following items are added or modified by this change order: . Storm sewer work ($312) . Fieldaccess road along north side of 195th ($4,050) . Adjusting existing bid quantities to actual quantities used ($45,692.99) DISCUSSION Part A of this change order is being added to compensate the contractor for additional work required to extend storm sewer at the west end of the project and to bulkhead an existing pipe. It is also included to compensate the contractor for rock placed on the project access road so that the road could be used to access the fields on both sides of 195th Street. The total increase for the additions in Part A is $4,362.00. . Part B of the change order is included to adjust the original contract quantities to the quantities actually used during construction. On past projects change orders were only done to add items to contracts. However, this method adjusts all of the items in the contract up or down, based on what was actually used in the field, so that the final contract amount is equal to the total paid to . the contractor for the project. It is also intended to provide Council with a clear picture of the overall total cost of changes to the project. The total increase for the adjustments made in Part B is $45,692.99. BUDGET IMPACT- The total change order amount is $50,054.99, and including all change orders on the project, the fmal contract amount is $8,447,047.90 (an increase of $75.1357.36 or 0.9% over the original . contract). The original contract amount was $8,371,690.54. 16-1 195th Street Change Order #3 December 6, 2010 Page 2 of2 ACTION REQUESTED By motion, approve Change Order #3. for the 195th Street Extension Project in the amount of $50,054.99, and approve the Final Pay request for theproject in the amount of $14,362.00. Respectfully Submitted, h~. Kevin Schorzman, P.E. City Engineer cc: file 16-2 rl"'I''"'V "-'opr y IV to G\-i . . ~ 1~ . Bonestroo Date November 29, .2010 Bond Com an : Merchants Bondfn Co., 2100 Fleur Drive, Des Moines, IA 50321 Bond No: MNC 51334 CHANGE ORDER NO. 3 195TH STREET EXTENSION TO T.H. 3 SAP NO. 212-102-004 BONi:STROO FILE NO. 000141-06273-0 Description of Work 1111s Che.nge Order provides compensatfon to the Contractor for work performed lhat was necessary to the project under PART A and a balanced list of items used for 1he project under PART B as follows: Change Order Contract Unit Total Item No. Item Unlt Quantity Price Amount CHANGE ORDER NO.3 - PART A 1 ADD BID ITEM. 12" RCP STORM SEWER LF 16 $13.25 $212.00 CLASS 5 TO EXTEND EXISTING PIPE ACROSS 195TH ST. 2 ADD BID ITEM - BULK HEAD 12" & 15" LS 1 $100.00 $100.00 Rep STORM SEWER PIPE 3 CONSTRUCT RAILROAD & FARMERS TN 27Q $15.00 $4,050.00 ACCESS ROAD WITH a" MINUS ROCK FROM NORTH STUB OF STREET A PART A SUB TOTAL $4,362.00 Pay Request OrigInal New Unit Balanced Item No. Item Unit Quantity Quantity 1:'1'1 ce Amount cHANGE ORDER NO.3 - PART B 6- TEMPORARY ROCK CONSTRUCTION EA 3 4 $700.00 $700.00 ENTRANCE 7 TEMPORARY FENCE If 13000 132 $1.20 ($15,44 t .60) 8 CLEARING AC 2.6 10.1 $1.440.00 S1G,BOO.OO 9 GRUBBING AC 2.6 m.l $1,440.QO $10,800.00 10 CLEARING TREE 22 272 $35.00 $8;750.00 11 GRUB TREE 2.2 272 $35.00 $6,760.00 12 SAWING BITUMINOUS PAVEMENT u= 400 563 $3.00 $489.00 13 REMOVE. BITUMINOUS PAVEMENT SY 1865 '1962 $1.40 $135.aO 14 REMOVE CONCRETE CURB AND LF 277 310 $1.30 $42.90 GUTTER 15 REMOVE BITUMINOUS PATH BY 235 245 . $1.60 $16.00 17 COMMON EXCAVATION (EV) GY 165297 122791 $1.20 ($51,007.20) 18 POND j;XCAVATION (EV) CY 108700 83200 $1.80 ($45,900.00) 19 COMMON BORROW (CV) CY 257397 246;207 $3.77 ($42,186.30) 20 SALVAGe AND RESPREAD TOPSOIL . GY 31814 27253 $1.40 ($6.385.40) 21 . SELECT GRANULAR BORROW (CV) CY 33792 5948~ $4.80 $1.23,345.60 22 COMPOST, GRADE 2 (CV) Cy 1200 498.2 $13.00 ($9.123.40) 23 AGGREGATE BASE, CLASS 2 TN 425 481,84 $15.50 $571.02 24 AGGREGATE BASE, CLASS 5, 100% TN 12600 19775.11 $11.70 $63,946.79 CRUSHED 25 8418 CONCRETE CURB AND GUTTER IF 5888 5681 $9.77 ($2,022.39) 26 8618 CONCRETE CURB AND GUTTER LF 79 107 $11.77 $329.56 27 MOUNTABLE CONCRETE CURB AND LF 1736 1641 $10.16 ($967.10) GUTTER 29 TYPE MV 3 NON WEARING COURSE TN 4500 4359.32 $48.00 ($6,752.64) MIXTURE (B) 30 TYPE MV 3 NON WEARING COURSE TN 4000 4324.64 $52..25 $lp,962.44 MIXTURE CC} 31 BITUMINOUS MATERIAL FOR TACK GAL 3700 3900 $2.25 $450.00 32 TYPE MV 3 WEARING COURSE rvHXTURE TN 4500 4394.72 $52.20 ($5,495.62) 16-3 l tll1t''''",,-UCH: \ to: -..--.--.- Pay Req est Original NeW Unit ~a!anced ItemN . Item .. Unit. QJ.fatiUtv Quantlt Price ArtIount 33 TYPE LV 4 WEARING COURSE MIXTURE TN 2000 1928.59 $58.60 ($4,184.63) (B) $0.10 38 4u SOLID LINE, WHlTE PAINT LF 4000 0 ($400.00) 39 4" DOUBLE SOLID LINE, YELLOW PAIN! IF 11000 0 $0.20 ($2,200.00) 42 4" SOLID LINE. 'vVHlTE EPOXY Lf 15000 14065 $0.30 ($280.50) 43 4" DOUBLE SOUD LINE, YELLOW EPOXY LF 9600 12247 $0.55 $1,455.85 44 24" SOLID LINE. YELLOW EPOXY LF 910 882 $4.70 ($131.60) 45 12" SOUD LINE, WHITE EPOXY LF 3400 521 $0.65 (51,871.35) 47 STREET NAME SIGN (TWO BLADES) EACH 3 2 $290.00 ($290.00) 48 TYPE IfI BARRICADE EA 7 4 $275.00 ($825.00) 49 5' HIGH CHAIN LINK FENCE LF 550 0 $17.00 (~9,350.QO) 50 SILT FENCE, MACHINE SLICED LF 15000 13326 $1.65 ($2,762.10) 52 SEEDING WITH MNDOT MIX 328 AC 0.7 o.a $525.55 $52.56 53 SEEDING WITH MNDOT MIX 310 AC 0.7 0".92 S985.95 $216.91 54 SEEDING WITH MNDOT MIX 250 AC 35 29.91 $370.00 ($1,B83.S0) 55 SEEDING WITH MNDOT MIX 1 i 0 OR 100 AC 86 29 $326.00 ($18,582.00) 56 BIOROLL LF 1800 1061 $2.70 ($1,995.30) 57 ROCK DITCH CHECK EA '25 0 $450.00 ($11,250.00) 58 MULCH MATERIAL. TYPE 1 TN 160 44.4 $100.00 ($11.560.00) 59 MULCH MATERIAL, TYFlE 3 TN 2.1 0 $100.00 ($210.00) . 60 EROSION CONTROL BLANKETS, SY 45500 27181 $0.95 ($1'7,403.05) CATEGORY 3 61 RAPiD STA~ILlZATION MHHOD 3 AC 19 Q $1,152.00 ($21,8Ba.OO) 62 FLOCCU~NT SOCK EA 15 0 $310.00 ($4,650.00) 63 Tl;MPORARY SEDIMENT TRAP EA 12 2 $200.00 ($2,OOO.OO) 64 CLOSED CIRCUIT TV INSPEQTION LF 3000 2906 $1.30 ($122.20) (MCES SEWER) .65 FOREMAN WITH TRUCK HR 20 23.5 870.00 $245.00 6.6 COMMON LAaORER HR 20 35 565.00 $975.00 67 BACKHOE WITH OPERATOR HR 20 21 $120.00 $840.00 68 DOZER wrrn OPERATOR HR 20 13.5 $120.00 ($7BO.OO) 69 FRONT END LOADER WITH OPERATOR HR 20 19 $100.00 ($100.00) 70 DUMP TRUcK WITH OPERATOR HR 20 19.5 $80.00 . (~40.00) 77 SALVAGE AND. REINSTALL20X16 TEE EA 1 0 $1,225.00 ($1,225.00) 78 SAL V AGJ; AND REINSTALL 20X6 TEE EA 1 0.5 $1,075.00 ($537.50) .81 6u DIP WATER MAIN, CLASS 52 LF 151 156 $28. to $140.50 . 82 16" DIP WATER MAIN, CLASS 250 LF 1230 1203 $50.30 ($1,358.10) 83 20" DIP winER MAIN, CLASS 250 LF 2750 2742 $62.80 ($502.40) 84 20" PVC WATER MAINl DR-1B LF so. 48 $134.50 <1j1269.00) 85 20" WATER MAIN DIRECTIONAL DRILLED LF 500 462 $2.13.50 ($8.113,00) 92 20" X 6" TE~ EA 5 6 $1,848.50. $1,848.50 93 16" X 6U REDUCER EA :3 2 $885.60 ($685.50) 99 20" 45 DEGREE BEND EA 2 4 $1,693.50 $3,387.00 '. 101 16" 11 .25 DEGREE BEND EA 2 1 $1,060.50 ($1,060.50) '. .102 6" 22 .S. DE!3REE BEND EA 2. 4 $620.50 $1.241.00 105 EXTEND HYDRANT BARREL LF 2. 7 $450.00 $2,250.00 106 ADJUST VALVE BOX EA 3 2 $2.00.00 ($200.00) 107 IMPROVEr;> PIPE FOUNDATION LF 500 0 $0.01 ($S.OO) iOB INSULATtON, 2" THICK SY 64 0 $30.00 ($1,920.00) 110 COMMON EXCAVATiON (EV) CY 25447 42500 $3.50 $59,685.50 111 SALVAGE AND RESPREAD TOPSOil CV 17036 9022 $2.00 ($16,028.00) 1.14 MULCH MATERIAL. TYPE 3 TN 13 O. $100.00 ($1,300.00) 115 SILT FENCE, MACHINE SllC1=D LF 2300 2189 $1.65 ($183.15) 119 VEGETATED REINFORCED BANK LF 8600 8430 $20.90 (S3,553.00) STABILIZATION 120 DITCH pLUGS EA 5 3 $1,500.00 ($3,OOO.OO) 121 SEEDING WITH BWSA MIX WT1 AC 14 12.$ $432.65 ($605.71) 122 SEEDING WITH CUSTOM NATIVE MIX AC 3 2.5 $875.20 ($437.60) "23 SEEDING WITH BWSR MIX un AC 30 :3 $282.50 ($7.627.50) 124 TEMPORARY FENCE LF 3250 507 $tao ($4,38B.80) :125 SILT FENCE, MACHINE SLfCED LF 6250 714 $1.65 ($9.134.40) . 126 LIVE SHRUBS (BARE ROOT) SHRUB 370 358 $6.80 ($81.60) 16-4 1~1~'627'i(.: lUI.\J, - --- -- Pay jiequest origInal New Unit ~iartced Item No. ,t$.U Utj~ Quantity QuantitY Price Amount '1~8. FLOTATION SILT CURTA1N, MOVING. u= 90 60 $18.00 ($540.00) WATER 129 MULCH MATERIAL, TYPE S TI\I 52 48 $100.00 ($400.00) 130 REMOVE STORM SEWER PIPE tF 40 21 S10.00 ($190.00) 131 15" RCP STORM SEWER, CLASS 5 LF 2379 2403 $19.20 $460.80 133 21" RCP STORM SEWER, CLASS 3 LF 941 944 $22.40 $67.20 134 24" RCP STORM SEWER, CLASS 3 IF 413 394 $27.85 ($529.15) .135 27" RCP STORM SEWER. CLASS 3 IF 148 153 $32.70 $163.50 147 ADJUST FRAME AND RING CASTING EA 1 5 $500.00 $2,000.00 148 RECONSTRUCT STRUCTURE t;A 2 3 $625.00 $625.00 '157 6' DIA STORM SEWER CBMH, W/SUMP EA 1 '0 $2,783.50 (~,783.50) 160 4' orAMETER STRUCTURE OVER DEPTH LF 1 0;41 $105.00 (seas) 161 5' DIAMETER STRUCTURE OVERDEPTH LF 1 ~,19 S170.00 $372.30 . 163 4" PERFORATED POLYETHYLENE PIPE LF 4400 4447 $8.65 $406.55 1.64 CLASS III RIPRAP, PLACED AT FLARED CY 100 114 $70.00 $980.00 END SECTION 165 PROTECT.lON OF CATCH BASIN. NON- EA 4 . .1 $225.00 ($675.00) STREET 16a PROTECTION OF FES INLET EACH 8 7 $400.00 ($4.00.00) '1.7Q 8" PVCSANITARY SEWER, SDR35, 10'- LF 810 803 $17.00 ($1'19.00) 15' PEEP 173 4' DIAMET~R SANITARY MANHOLE LF 13 10.46 $55.00 ($139.70) OVERDgpi'H . .174 JE:T/CLEAN SANITARY SEWER LF 810 803 $1.10 .($7.70) .175 CLQSEQ 'ciRCUIT TV INSPECTION LF 810 B03 $0.85 ($5.95) ',.179 STRUCTURAL CONCRETE (3Y43) C\' 1012 1027 $425.00 $6,375.00 .i{34 AEINFORGEl\Jj.ENT 8A.RS (EPOXY lBS 402820 474251 $1.10 $78,574.10 .1"94 C.l.p. CONCRETE PILING DEUVERED 12" LF 6090 5880 $38.00 (S7,980.00) 195 CJ.P. CONCRETE PILlN(.3 DAIV~N 12." LF 6090 5698 $1.00 ($39~.OO) 199 RANDOM RIPRAP CLASS SPECIAL CUYD 430 540 $55.00 $6,050,00 200 RANDOl\Jj RH;'RAP CLASS III CY 570 676 . $55.00 $5,830.00 '~04 ARCHITE:CT!..lAAL CONCRETE TEXTURE SF 10013 9115 $20.00 ($17,960.00) (THIN BAICK). . PART B SUB TOTAL $45,692.99 TOTAL CHANGE' ORDER NO.3: $50,054.99 16-5 14 t'1,'21~t 'Htl.1_\l< Onginal Contract Amount Previous Change Orders This Change Order Revised Contract Amount (indudlhg thIs change ord~r) CI-lANGE IN CONTRACT TIMES Original Contract Times: Substantial Completion (days or date): Ready for final Payment (days or date): Ir'lc(ea.se of this Change Order: Substantial Completion (days or date): Ready for final Payment (days or date): Contract Time with all approved Chang~ Orders: Substantial Completion (diws or date): Ready for final Payment (days or date): Recommended for Approval by: BONr;STROO fltU Date: 11/ J {:5" //~ .$8,371,690.54 $25,302.37 . $50,054.99 $8,447,047.90 Approved by Contractpr: ~.ESCONTRACTINGCO' ~J "~ ' '. #~- ~-. DatI . Approved by Owner: CITY OF FARMINGTON Date cc: Owner Contractor 'Bonding Company BOnElstroo & Assoc. 16-6 H IOfl27.KHOJ.xls crrv COpy .. Bonestroo Ovmer: For Period: Coo tractor: Dare: November 29 2010 Re uest No 17 AND FINAL 21980 Kenrick Avenue LakeViJIe MN 55044 CONTRACTOR'S REQUEST FOR PAYMENT 195rH STREET EXTENS!ON TO T.H. 3 aONESTROO FILE NO. 000141-06273~O 5UMlV1ARY 1 Original Contract Amount $ 8,371,690.54 :2 Change Order - Addition $ 75,357.36 3 Change Order - Deduction $ 0,00 4 Revised Contract Amount $ 8,447,047.90 5 Value completed to Date $ 8,447,047.90 .6 MaterIal. on Hand $ 0.00 7 Amount Earned $ 8,447r047.90 8 Less Retainage 0% $ 0.00 .9 Subtotal $ 9,447,047.90 10 less Amount Paid Previously $ 8,432,685.90 11 Uquldated damages ~ $ 0.00 12 AMOUNT DUE THIS REQUEST FOR PAYMENT NO. 17 AND FINAL $ 14,362.00 Recommended for Approval by: J30NE~ ' ./ ,.' led.- A %o;:~ MPANV Approved by Owner: CITY OF FARMINGTON ......... "-..".,j Specified Contract Completfon Date: Date: !410027:lREOI7 Fmal.xlsOl . 16-7 ., Coi1ttaef:: lJl'ilt CUrrent Quantity Amount No. Item Unit qUantitY Price Quani:lty 1:0 Date to Date . PARI 2 ~ WATER r-tAIJ'!:" 71 DEWATERING tS 1 49spo.OO 1 $49;500.00 n SALVAGE-AND REINSTALL HYORANT EA 2' lQOO.OO ~ $2,000.00 73 SALVAGE.AND REINSTALL GATE VM.VE AND BO}C EA 2 . .500.00 2 $1,000.00 74 R8>10VE 20~ DIP WATER r'1AIN li 33 10.00 33 $330.00 75' ' 1ti:1'10vt: 5u DIP WATER HAlN tF 49 10.00 49 $490.00 76 sALVAGE 20 X 16 TEE ~ 1 500.00 1 $500.00 77 SALVAGE AND REINSTM.L 20X16 TEE ~ 1 1225.00 $0.00 is SALVAGE AND REINSTAlL 20:<6 TEE EA 1 1075.00 0.5 $S37.50 79 SALVAGE AND REINSTAll 16 X 6 REDUCER fA. 1 745.00 1 $745.00 80.' CONNECT TO EXISTING WATER ~lAIN EA. 2 1200.00 2 $2,400.00 81 6" DIP WATER t.WN, ClASS 52 IF 151 28.10 156 $4,383.60 82 . 16" DIP WATER 1'1MN, ClASS 250 IF 1230 50.30 1203 $60,510.90 83 20n DIP WATER MAIN, CLASS 250 i.F 2750 62.80 2742 $172,197.60 84 20" (lVe WATER MAIN, OR.IS LF 50 1~4.S0 48 $6,456.00 85 .20" WATER f.1AIN DIRECTIONAL DRIlLED LF 500 213.56 462 $98.637.00 86 20" WA-reR MAIN, JACKE.D IF 125 455.50 125 $56,937.50 37' 24" STEEL CASING PIPE, OPEN CUT IF 335 225.00 335 $75,375.00 88 . 36" STEEL CASING PIPE, OPEN CUT lr 180 125.00 180 $22,500.00 89 6" GATE VALVE AND BOX EA 8 935.00 B $7,480.00 90 16~ GATE VALVE ANI) BOX EA 3 7580.00 3 $22,740.00 91 20" GATE VALVE AND BOX EA 7 12765.00 7 $89,355.00 92 . 20" X 6" TEE EA .5 1848.50 6 $11,091.00 . . 93 16" X 6" TEE EA 1 1273.50 1 $1,273.50 94' 2Cf. X 20" TEE EA 3 2509.50 3 $7,52B.50 95 io~ X 15" CROSS EA 1 3705.50 1 $3,705.50 96 16".X 6" R.EDUCER. EA 3 885.50 2 $1,771.00 97 2(}" X 16'" REDUCER EA 3 1450.50 3 $4,351.50 98 7.0" Pl-!1G EA 1 1229.50 :I. $1,229.50 g!} . 20" 45 DEGREE BEi4P EA 2 1(.i!l3.SQ -1 $6,774.QO 100 1.6" 22.5 DEGREE BEND EA 3 1060.S0 3 $3,18.1.50 101: f6"'11.~5 DEGREE BEND EA 2 1060.50 1 $1,060.50 102 .6" 22 .5 DEGR!;c 6!:ND EA 2 620.50 4 $2,482.00 103 HYDR1\NT EA B 2113.75 8 $16,910.00 104 VALVE OOX EXTENSION LF 5 75.00 5 $3~S.00 105 WEND HYDIWIT 6AF<REL LF 2 450.00 7 $3,150.00 106 ADJUST VALVE BO~ EA 3 200.00 2 $400.00 107 IMPROVED PIPE FOUNDATION LF SOD 0.01 $0.00 lOB '.~N5ULATiON, 2nTHIC~ SY 54 30.00 $0.00 '.TOTAL.PART2 - WII,TER MAIN: $739,358.60 pART 3 ~ WenAND MmGATION: 109 . DEWATERING LS 1 75000.00 1 $75,000.00 110 CQMHON EXCAVATION (EV) C( 25447 3.50 42500 $148,150.00 U.1. SALVAGE AND RfSPREA\> TOPSOIL (CV} C( 17036 2.QO 9022 $18,044.00 1.12 SEEDING WITH 8WS~ t<lIX W2 AC 6.2 1155.60 6.2 $7,164.72 113 SEEDING wiTH MNDOTMpc 250 AC 2 370.00 2 $740.00 114 ;'I-:\UlCrj MATERIAL, TYPE 3 TN 13 100.00 $0.00 '115 SILT FENCE, NACHINE SLICED IF 2300 1.65 2lB9 $3,611.85 TOTA\. PART 3 - WETLAND MmGATION: $253.310.57 PART4-~HANNELR~AlIGNMENT: 116 BYPASS PUMPING LS 1 30000.00 1 $30,000.00 li1. DE\t"JATERING IS 1 75000.00 1 $75,000.00 118 .COl<1MON CHANNS- EXCAVATION (EV) C( 15450 4.50 15450 $69,525.00 119 "vE(;I:rATED REINFORCED BANK STABIlIZATION LF 8600 20.9Q 8430 $176,187.00 120 . DITcH PLUGS . EA 5 1500.00 3 $4,500.00 121. SEEDING Wrrn BWSR fV1IX Wfl AC 14 432.65 12.6 $5,451.39 122 SEEDING '.'\lITH CUSTOl"l NATIVE MIX AC 3 875.20 2.5 $2, 18tJ.00 123 SEEOn~G wri1-I BWSR MIX lIT! AC 30 282.50 3 $847.50 124 rEMPORAIW FENCE LF 3250 1.60 507 $8~1.20 125. SIl,.T FENC;:E, MACHINE SliCED IF 6250 1.65 714 $1,178.10 1~5 U'i(: SHRUBS (BARE. ROOT) . SI1RW 370 6.80 358 $2,'l34.40 1~7 ClASS I RANPOM RIPRAP TN 30 100.00 30 $3,000.00 12B FLOTATION SILT CURTAIN, rvlOVING WATER LF 90 18.00 60 $1,080.00 129 I<lULCH MATERIAlr mE 3 TN 52 :\00.00 48 $4,800.00 toTAL PART 4 . a~ANNEl RE-AUGNMENT: $377,002.59 PARI 5 ~ ST()Rt>t SEWER: 130 RE~10VE SToRr"! SEWER PIPE LF 'lO 10.00 2! $210.00 131 15" RCP STORM SEViER, ClASS 5 If 2379 19.20 2103 $46,1f~6~9 1~'0S2r.n,.011 Fc'llJ ICbm --..---.- CO~d: Unit Current. Q:uantitY AnfOImt No. Iterti t!nit €l~~ price Quantity to Date 'to Date 198 C+P CONCRETE TEST PILE 115 Fr LONG 12' EA 1 6QOO.OO 1 t6,OOO.OO 199 RAND014 RlPRAP ClASS 5PEClAl Cf 430 ?5.00 540 $?~.100.09 200 RANDOM lUPRAP ClASS m Cf 570 55.00 676 $~?~lSO~QO 201 GRANULAR FItTER Cf 215 ;;0.00 215 $4,31)0.00 202 . CONDUIT SYSTEM (liGHTING) LS 1 9850.00 1 $9,850.00 203 ORNAt.fENTAL !.fETAl RAILJNG lYPE SPECIAL IF 620 95.00 620 $58,900.00 204 ARCHITECTURAL CONCRETE TEXTURE (nuN BRICK) SF 10013 20.00 9115 ~1a2,300.00 TOTAL PART 7 - BRIDGE: $3,633,792.10 CHANGE ORDER NO.2 f SAWcur OUTlcf CONTROLS SlRUC111RE 301 TO f'lAKE l,S ~ 6Q\).OO 1 $!iOO.oo CONNECTION TO EXISTING PIPE WHICH WAS 0.5' LOWER THAN ANl1ClPATED $.530.00 2 ADD BID ITEM - 12" RCP STORM SEWER, ClASS 5 tF 40. .13.25 40 3 ADD BID lTEl\l " 18" cr.l? SfORH SEVIER, INCLUDES BANDS LF 136- 18.57 136 $2,525.52 <1 ADD BID mt., ~ IS" APRONS EA 4 lOPP: ., $404.80 5 ADD BID ITEl'l - 8' OIAf-tffiR STORr.1 MH WIDI SUMP EA ) ;2992.50 i $~,992.50 6 INCREl\SE IN QUANTITY - LINE: ITEf'1 NUt-IBER 15 - MUCK Cf 5036 2.40 5036 $"1?,O86.40 EXCAVATION. CONTRACT QUANTITY WAS ESm1ATED BASED ON SOIL BORINGS. ACTUAL QUANTllY WENT BEYOND CONTRACT OUAN1IT.Y $5,817.85 7 I\DDmoNAL DEWATERING FO~ WATERl'lAIN INSTALlATION. LS ! 5817.85 1 EXISTING WATERf-1AIN WAS 4' LOWER THAN ANTICIPATED. 8 SHIPPING COSTS FOR AODmONAL HATERIALS FOR LS 1 345.30 ! $345.30 CONNECTION TO EXISTING WATERHAIN TIiAT WAS 4' LOWER THAN AfmOPATED. TOTAL CHANGE ORDER NO.2: $25,302.37 CHANGE ORDER lt~. 3 1 12" RCP STORH sEWER. CLASS 5TO EXTEND EXISTING PIPE u: '16 13.2.5 16 16 $~12.00 ACROSS 195TH STREET a . BUlK HEAD 12" AND 15" RCP- STORi'1 SEWER PIPE LS 1 100.00 1 1 $100.00 3 CONSTRUCT RAILROAD AND fARNERS ACCESS ROAD WITH 3" TN 270 15.00 270 270 $4,050.00 f>.'UNUS ROCK FROM NORTH STUB OF STREET A TOTAL CHANGE ORDER NO.3: $4,362.00 TOTAL PART 1 - 195Tfi STREET: TOTAL PART 2 . WATER NAIN: TOTAL PART J . WETlAND ~1mGATION: TOTAL PART 4 - CHANNEL RE-ALIGNf.llENT: TOTAL PART 5 - STORi'1 SEWER: TOTAL PART 6. SANITARY SEWER: . TOTAL PART 7 - BRIDGE: ToTAL CHANGE ORDER 2 TOTAL l1lANGE bRD~R 3 TOTAL WORK COMPLETE!) TO DATE $3,123,506.52 $739;358.60 $253,310.57 $377,002.59 $267,~2.1.00 $23,092.15 $3,633;'792.10 $25,307.31 $4,362:00 $8/M7,047.90 16-11 1411c~n:RBJ'7 FlUitt:o:tm1 PROJECT PAYMENT STATUS OWNER CITY OF FARMINGTON BONESTROO FILE NO. 000141-06273-0 CONTRACfOR FRIEDGES CONTRACTING COMPANY CtlANGE ORDERS No. Date escflDtlon aunt 1 9/26/2008 This Change Order provides for the addition of the Notice of Certification of Trunk Rental Rates from the Department of Labor for the State of tvlinnesota. See Change Order. 2 12/22/2008 This Change Order provides for additional work in this $251302.37 nroiect. See (h;:!nne Order. 3 11/2.9/2010 This Change Order provides for additional work on this $50,054.99 project and balance list of items used for the project. See Channe Order. Total Chanaa Orders $75,357.36 D Am PAYf.1ENT SUMMARY' No. From To Payment Retainaae Completed 1 07/01/2008 07/29/08 209.450.10 11 023.69 22.0 473.79 . 2. 07/30/2008 08/26/08 818591.41 54 107.45 1,082,148.96 3 08/27/2008 09/26/08 431,218.46 76,803.16 1,536,063.13 4 09/27/2008 10/15/08 406,903.62 98219.14 1,964,382.73 5 10/16/2008 !Ohl/08 1.394151.29 171,595.52 3,431,910.~O 6 . 10/28/2008 11/21/08 1,185,284.21 233,978.90 4,6791577.99 7 11/22/2008 iZI22/08 490,474.64 259,793.35 5,19'5,867.08 01/14/09 . . 8 12/2;3/2.008 605.081.00 291.639.72 5,832,794.45 9 01115/2009 04/24/09 795,146.44 333.489.54 6,669.790.71 10 04/25/2009 . 05/22/09 192.145.43 343,602.45 6,872.049.05 11 OS/z3/2009 06/26/09 362,{)36.44 362,688.58 7,253,771.62 12 06/27/2009 07/28/09 234,398.25 375,025.33 7,500,506.62 13 07/29/2009 08/25/09 389,299.36 395;514.77 7,910,295.42 14 08/26/2009 09129/09 .514,848.50 163,869.98 8,193.499.13 15 09130/2009 10/23/09 229.591.79 .168,555.53 8,427 776.47 16 10/2412Q09 12f15/09 173.464.96 10 000.00 8,442 685.90 17 AND FINAL 12/16/2009 11/29/10 14.362.00 8,447047.90 Mat~riar on Hand Total Payment to Date Retaina e Pa No, 17 AND FINAL Total Amount Eamed $8,447,047.90 Orr inal COntract Chan e Orders 8447047.90 Revised Contract 371 690.54 75 357.36 .8,447 047.90 16-12 141Q6273REQ17 FinaLxl$m lOb City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn.us TO: Mayor, Councilmembers, City Administrator FROM: Kevin Schorzman, P .E., City Engineer (jf SUBJECT: Change Order #2- Walnut Street Reconstruction Project DATE: December 6, 2010 INTRODUCTION . Council awarded the Walnut Street Reconstruction Project at the February 16, 2010, City Council meeting. The following items are added or modified by this change order: . Adjustment of curbstops due to shallow service lines ($2063.04) . Changing to low-profile castings on several catch basins ($540.00) . Installation of sod rather than seed on the house side of sidewalks ($5,600.00)' DISCUSSION Item D of this change order is being added to compensate the contractor for additional work required to adjust curbstops at several locations on the project where existing water service lines were too shallow to be lowered to the appropriate grade using a standard curbstop. Item E is included to compensate the contractor for the additional cost of low-profile castings for six catch basins on the project. A standard casting could have been used, however this would not have allowed for the installation of an adjustment ring on the catch basin. Staff felt that it was important, long-term, to have at least one adjustment ring on each structure to allow for adjustment in the future if it would be necessary. Item F of the change order is included to compensate the. contractor for the cost of installing sod on the house side of the sidewalks in the project. The original plan was to seed this area. During the project it was decided that sod would be installed rather than seeding, to aid in erosion control behind the sidewalk:. It also gave the front yards within the project a more "finished" appearance up to the sidewalk. While the sod installation cost was $5,600.00, this cost is somewhat offset by the cost of seeding the sodded area which woUld have been approximately $1,000 leaving a net additional project cost of $4,600.00. BUDGET IMPACT The total change order amount is $8,203.04 which is within the project budget. 17-1 Walnut Street Change Order #2 Dec;ember 6, 2010 Page 2 of2 ACTION REQUESTED By motion, approve Change Order #2 for the Walnut Street Reconstruction Project in the amount of $8,203 .04. Respectfully Submitted, 4/r U/L----- ~'l/I p/ Kevin Schorzman, P .E. City Engineer cc: file 17-2 Owner: City of Farmington. 430 Third St., Farmington, MN 55024 Date December 1, 2010 Contractor: S.M. Hentges & Sons Inc. ~ I Bond No: Bond Co.: Liberty Mutual Insurance Company 190:..021-547 CHANGE ORDER NO. 2. WALNUT STREET RECONSTRUCfION PROJECf CITY OF FARMINGTON PROJECf NO. 09-06 Descrh)tion of Work The following changes address improvements to the Walnut Street Reconstruction Project: D) Item D accounts for the additional labor and materials in cutting down and adjusting several water service curbstops. This was done at locations where the resident's existing water service was too shallow to be lowered to grade using a standard curbstop adjustment. E) Item E accounts for the additional cost in using 6 low profile catch basin castings. This was done where the elevation of the catch basins would not allow for the installation of at least one adjusting ring using a standard casting. F) Item F accounts for the additional labor and materials involved in installing sod instead of seeding behind the sidewalk and into residents' front yards. This was done to improve both erosion control and the appearance where the project's disturbance limits would abut the resident's existing front yard. This quantity also reduced the total area that would have been seeded. O:!lntract Ui1it Total :rrEM No. Item Unit Quantity I?rioo Amount D 87D ADJUST CURB STOPS LS $2,063.04 $2,@63.@4 E 131E lOW PROfIlE CAsn:NG~ LS $540.00 $540.00 F 179F SOD INSTALll.A1l0N LS $5,600.00 $5.600.00 TOTAIl. CHANIt:iE ORDER NUMBER 2. $8,2.03.04 Change Order 2.xIs 17-3 Original Contract Amount Previous Change Orders This Change Order Revised Contract Amount (including this change order) t I $1,889,483.73 $6,772.70 $8,203.04 $1,904,459.47 CHANGE IN CONTRACT TIMES Original Contract Times: Substantial Completion (days or date): Ready for final Payment (days or date): Increase of this Change Order: Substantial Completion (days or date): Ready for final Payment (days or date): Contract Time with all approved Change Orders: Substantial Completion (days or date): Ready for final Payment (days or date): Recommended for Approval by: Date: . J<j..' I~tc:.--- 12./ /lfD Approved by Contractor: S.I.\1I. Hentges & Sons Inc. Approved by Owner: CITY OF FARMINGTON Date Date. co: City of Farmington S.M. Hentges & Sons Inc. Liberty Mutual Insurance Company Bonestroo & Assoc. Change Order 2.x1s 17-4 //~ City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.fannington.mn.us Mayor, Councilmembers, City Administrator & Kevin Schorzman, P .E., City Engineer TO: FROM: SUBJECT: Seal Coating Franchise Fee Discussion DATE: December 6, 2010 - INTRODUCTION For the City's seal coat program to continue to be funded, Council needs to establish a source of reVenue to fund the program. on an ongoing basis. Council was presented with the option of implementing franchise fees for gas and electric utilities at the September 20, 2010 COUJlcil meeting. This item has been discussed at two Council workShops and at the November 15th Council meeting. After discussion at the November 15th meeting, this item was tabled to the December 6, 2010 Council meeting. DISCUSSION The following information is attached pertaining to the franchise fee discussion: . A spreadsheet showing a .breakdown of historic expenditures related to the annual seal coat proj ect. . A spreadsheet showing the number of accounts for all three utilities as well as the breakdown of the non-residential components (non-residential small ND was the group that was put in the $2.00 rather than the $8.00 per month category based on discussions with the utilities) , . A spreadsheet showing historic contract prices paid for seal coating as well as three different ways to estimate future seal coat costs. . A spreadsheet showing franchise fee options A-D CD is a combination of franchise fees and assessments with seal coating beginning in 2012 not 2011) . A spreadsheet showing the cash flow for options A-C (100% franchise fees) and the anticipated fund balance for each quarter beginning in 20 11 (cash flow based on the assumption that franchise fee collection will begin in March) 18-1 Seal Coat FranchisePees December 6, 2010 Page 2 of2 · A spreadsheet showing two cash flows for option D (50% franchise fees) and anticipated fund balances for each quarter beginning in 20 11 (cash flow based on the assumption that franchise fee collection will begin in March). The first is based on a variable RED cost per year, the second is a normalized RED cost for the 7-year program. Notes on the options: o All options provide a reasonable cash flow to sustain the seal coat program o Option D will delay, not eliminate the potential issues that have been previously_ discussed about assessing for seal coat. o Any option involving assessments requires "seed money" or the project will continually run in a deficit (in Option D, this is provided by collecting fees for one year prior to heginDing the program). o Option D will increase the cost of the 7-year program by approximately $132,000 due to the one year delay. o Options C and D use a "flat rate per-meter" regardless of the type of service (no difference between residential and non-residential) o Option B uses a "modified flat rate per meter" (residential and 349 non-residential small non-demand Customers pay one rate and all other non-residential customer pay another rate) BUDGET IMPACT Approval of this item will provide a consistent, long-term funding source for the City's. annual seal coating program. For this program to continue, it is important that a funding source be identified to provide consistent cash flow to adequately fund the project and protect. it from uncertainties related to other funding options. ACTION REQUESTED Approve the attached fee ordinances with Minnesota Energy Resources, Dakota. Electric. Association and Xcel Energy, modified per Council's direction on the appropriate fee option. Respecifully Submitted, /1(~- /-fy$t / (/ .. Kevin Schorzman, P.E. City Engineer 18-2 Breakdown of Historic Expenditures Related to the Annual Seal Coat Project Total Seal Coat Crack Seal Year Expenditure Payment Payment ELA 2000 $ 84,546.60 $ 78,771.70 $ 5,774.90 2001 $ 48,184.24 $' 39,875.14 $ 8,309.10 2002 $ 63,935.77 $ 57,167.30 $ 6,768.47 2003 $ 68,410.85 $ 59,306.84 $ 9,104.01 2004 $ 124,778.55 $ 111,953.71 $ 12,824.84 2005 $ 180,322.87 $ 130,882.85 $ 34,142.15 $ 15,297.87 2006 $ 148,086.99 $ 114,711.35 $ 14,535.00 $ 18,840.64 2007 $ 184,415.40 $ 145,920.00 $ 14,943.46 $ 23,551.94 2008 $ 134,093.98 $ 81,680.64 $ 23,511.54 $ 28,901.80 2009 $ 283,883.44 $ 236,792.16 $ 29,583.04 $ 17,508.24 2010 $ 216,302.56 $ 175,541.49 $ 19,990.72 $ 20,770.35 .Seal Coat Payment equals the actual payment to the seal coat contractor. Crack Seal Payment equals the actual payment to the crack sealing contractor. ELA includes all other costs associated including but not limited to: Plan preparation costs Inspection costs Postage Legal Notice costs Administrative fee paid as part of JPA Legal review costs Assessment roll preparation costs 18-3 Account 'nformation General Overview Gas DEA XCEL Total % Residential 6924 4103 3177 14204 93.9% Non-Residential 399 157 373 929 6.1% Total 7323 4260 3550 15133 % . 48.4% 28.2% 23.5% Non-Residential Breakdown Gas DEA . XCEL Total % Non-Residential Small ND 0 114 235 349 37.~% Non-Residential Other 399 43 138 580 62.4% Total 399 157 373 929 % 42.9% 16.9% 40.2% Percent Small Non-Residential, Non-Demand compared to total: I 2.3% I 18-4 Actual Historic costs (Price paid to the contractor) CONTRACT Prices per SQYD.. . Cost per . % Incr Over Cost Year SQYD Prevo Yr. ,'Increase 2002 $ 0.39 2003 $ 0.54 . 39% 2004 $ 0.59 10% $ 0.05 2005 $ 0.56 -6% $. (0.03 2006 $ 0.65 16% $ 0.09 2007 $ 0.76 17% $ 0.11 2008 $ 0.96 26% $ 0.20 2009 $ 1.08 13% '$ 0.12 2010 $ 1.19 10% $ 0.11 7 -year increase: 100% Estimated Costs based on historic percentage increases (Price paid to the contractor)' CONTRACT Prices er SQYD Cost per Year SQYD SQYD Total 2011 $ 1.30 227194 $ 296,299.54 2012 $ 1.23 -6% 174390 $ 214,416.04 2013 $' 1.43 16% . 198615 $ 283,447.79 2014 $ 1.67 17% 192610 $ 321,395.73 2015 $ 2.11 26% 159465 $ 336,112.21 2016 $ 2.37 13% 286156 $' 678,538.18 2017 $ 2.61 10% 189667 $ 495,548.78 $ 2,625,758.26 +5% contingency: $ 131,287.91 Total: $ 2,757,046.18 Per Year Total: $ 393,863.74 Estimated costs based on 5% increases Method used to estimate 7-year program cost for Franchise Fees (Price paid to the contractor) . Total Costs (includes, contractor price and ELA) CONTRACT Prices per SQYD I ESTIMATI;D TOTAL Prices per SQYD Includes 5% annual increase and 27% ELA) Cost per % Incr Over Cost per % Incr Over Cost per % Incr Over Year SQYD Prevo Yr. SQYD Total Year SQYD Prevo Yr. Year SQVD Prevo Yr. SQYD Total 2011 $ 1.25 22T194 $ 283,878.90 2011 $ 1.59. . 2011 $ 1.59 227194 $ 360,526.21 2012 $ 1.31 5% 174390 $ 228,795.32 2012 $ 1.67 5% 2012 $ 1.67 5% 174390 $ 290,570.06 2013 $ 1.38 5% 198615 $ 273,606.81 2013 $ 1.75 5% 2013 $ 1.75 5% 198615 $ 347,480.65 2014 $ 1.45 5% 192610 $ 278,601.20 2014 $ 1.84 5% 2014 $ 1.84 5% 192610 $ 353,823.53 2015 $ 1.52 5% 159465 $ 242,191.46 2015 $ 1.93 5% 2015 $ 1.93 5% 159465 $ 307,583.16 2016 $ 1.59 5% 286156 $ 456,336.93 2016 $ . 2.03 5% 2016 $ 2.03 5% 286156 $ 579,547.90 2017 $ 1.67 5% 189667 $ 317,587.81 2017 $ 2.13 5% 2017 $ 2.13 5% 189667 $ 403,336.52 $ 2,080,998.44 $ 2,642,868.02 +5% contingency: $ 104,049.92 7 -year increase: 34% +5% contingency: $ 132,143.40 Total: $ 2,185,048.36 Total: $ 2,775,011.42 Per Year Total: $ 312,149.77 Per Year Total: $ 396,430.20 ...... CD I C1I Estimated costs based on 10 cent annual increases Alternate method to estimate 7 -year program cost for Franchise Fees (Price paid to the contractor) Total Costs (includes, contractor price and ELA) I CONTRACT Prices per SQYD ESTIMATED TOTAL Prices per SQYD 'Includes 10 cent per vear contract orice increase and 13.6% ELA) Cost per % Incr Over Cost per %Incr Over Cost per % Incr Over Year SQYD Prevo Yr. SQYD Total Year SQYD Prevo Yr. Year SQYD Prevo Yr. SQYD Total 2011 $ 1.29 227194 $ 293,080.26 2011 $ 1.47 2011 $ 1.47 227194 $ 332,939.18 2012 $ 1.39 8% 174390 $ 242,402.10 2012 $ 1.58 8% 2012 $ 1.58 8% 174390 $ 275,368.79 2013 $ 1.49 7% 198615 $ 295,936.35 2013 $ 1.69 7% 2013 $ 1.69 7% 198615 $ 336,183.69 2014 $ 1.59 7% 192610 $ 306,249.90 2014 $ 1.81 7% 2014 $ 1.81 7% 192610 $ 347,899.89 2015 $ 1.69 6% 159465 $ 269,495.85 2015 $ 1.92 6% '2015 $ 1.92 6% 159465 $ 306,147.29 2016 $ 1.79 6% 286156 $ 512,219.24 2016 .$ 2.03 6% 2016 $ 2.03 6% 286156 $ 581,881.06 2017 $ 1.89 6% 189667 $ 358,470.63 2017 $ 2.15 6% 2017 $ 2.15 6% 189667 $ 407,222.64 $ 2,277,854.33 $ 2,587,642.52 +5% contingency: $ 113,892.72 7 -year increase: 47% +5% contingency: $ 129,382.13 Total: $ 2,391,747.05 " Total: $ 2,717,024.64 Per Year Total: $ 341,678.1'5 Per Year Total: $ 388,146.38 Estimated costs based on historic cost increase Alternate method to estimate 7 -year program cost for Franchise Fees (Price paid to the contractor) Total Costs (includes, contractor price and ELA) I CONTRACT Prices per SQYD ESTIMA,TED TOTAL Prices per SQYD 'Includes historic contract price increase and 13.6% ELA) Cost per % Incr Over Cost per % Incr Over Cost per % Incr Over Year SQYD Prevo Yr. SQYD Total Year SQYD Prevo Yr. Year SQYD Prevo Yr. SQYD Total 2011 $ 1.24 227194 $ 281,720.56 2011 $ 1.41 2011 $ 1.41 227194 $ 320,034.56 2012 $ 1.21 -3% 174390 $ 210,314.34 2012 $ 1.37 -3%. 2012 $ 1.37 -3% 174390 $ 238,917.09 2013 $ 1.30 7% 198615 $ 257,405.04 2013 $ 1.47 7% 2013 $ 1.47 7% 198615 $ 292,412.13 2014 $ 1.41 8% 192610 $ 270,809.66 2014 $ 1.60 8% 2014 '$ 1.60 8% 192610 $ 307,639.77 2015 $ 1.61 14% 159465 $ 256,100.79 2015 $ 1.82 14% 2015 $ 1.82 14% 159465 $ 290,930.50 2016 $ 1.73 7% 286156 $ 493,905.26 2016 $ 1.96 7% 2015 $ 1.96 7% 286156 $ 561,076.37 2017 $ 1.84 6% 189667 $ 348,228.61 2017 $ 2.09 6% 2017 $ 2.09 6% 189667 $ 395,587.70 $ 2,118,484.26 $ 2,406,598.12 +,5% contingency: ;$ 105,924.21 7 -year increase: 48% +5% contingency: $ 120,329.91 Total: $ 2,224,408.47 Total: $ 2,526,928.02 Per Year Total: $ 317,772.-64 Per Year Total: $ 360,989.72 o ... ~ ... c o "0 S C C CD C ~ .9 D:. en .... <( g~c> o :!: ~ ... c o "0 CD .... 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"0 ....- c ,II). .g&! ,_ I II) C CD 0 o::z Seal Coating Fund Balance Estimate (Based on 100% Revenue Collected through Franchise Fees) No Contingency Contingency Quarter Revenue Expenditure Balance Expenditure Balance 2011 $ - $ - March $ 33,333.33 $ 36,052.62 $ (2,719;29' $ 37,855.25 $ (4,521.92 June $100,000.00 $ 36,052.62 $ 61,228.09 $ 37,855.25 $ 57,622.83 Septembel $100,000.00 $ 288,420.97 $ (127,192.88) $ 302,842.01 $ (145,219.19 December $100,000.00 $ (27,192.88) $ (45,219.19) 2012 $ (27,192.88 $ (45,219.19' March $100,000.00 $ 29,057.01 $ 43,750.12 $ 30,509.86 .$ 24,270.96 June $100.,000.00 $ 29,057.01 $ 114,693.11 $ 30,509.86 $ 93,761.10 Septembel $100,000.00 $ 232,456.05 $ (17,762.93) $ 244,078.85 $ (50,317.75) December $100,000.00 $ 82,237.07 $ 49,682.25 2013 $ 82,237.07 $ 49,682.25 March $100,000.00 $ 34,748.06 $ 147,489.00 $ 36,485.47 $ 113,196.79 June $ 100;000.00 $ 34,748.06 $ 212,740.94 $ 36,485.47 $ 176,711.32 September $100,000.00 $ 277,984.52 $ 34,756.42. $ 291,883.75 $ (15,172.43) December $100,000.00 $ 134,756.42 $ 84,827.57 2014 $ 134,756.42 $ 84,827.57 March $100,000.00 $ 35,382.35 $ 199,374.06- $ 37,151.47 $ 147,676.10' June $100,000.00 $ 35,382.35 $ 263,991.71 $ 37,151.47 $ 210,524.63 Septembel $100,000.00 $ 283,058.82 $ 80,~32.89 $ 297,211.76 $ 13,312.87 December $100,000.00 $ 180,932.89 $ 113,312.87 2015 $ 180,932.89 $ 113,312.87 March $100,000.00 $ 30,758.32 $_ 250,174.57 $ 32,296.23 $ 181,016.63 June $100,000.00 $ 30,758.32 $ 319,'416.26 $ 32,296.23 $ 248,720.40 September $ 100,000.00 $ 246,066.53 $ 173,349.73 $ 258,369.85 $ 90,350.55 December $100,000.00 $ 273,349.73 $ 190,350.55 .2016 $ 273,349.73 $ 190,350.55 March $100,000.00 $ 57,954.79 $ 315.,394.94 $ 60,852.53 $ 229,498.02 June $100,000.00 $ 57,-954.79 $ 357,440.15 $ 60,852.53 $ 268,645.49 Septembel $100,000.00 $ 463,638.32 $ (6,198.17) $ 486,820.23 $(118,174.74) December $100,000.00 $ 93,801.83 $ (18,174.74) 2017 $ 93,801.83 $ (18,174.74) March $100,000.00 $ 40,333.65 $ 153,468.18 $ 42,350.33 $ 39,474.92 June $100,000.00 $ 40,333.65 $ 213,134.53 $ 42,350.33 $ 97,124.59 Septembel $100,000.00 $ _ 322,669.22 $ (9,534.69) $ 338,802.68 $ (141,678.09) December $100,000.00 $ 90,465.31 $ (41,678.09) $ 2,642,868.02 $ 2,775,011.42 18-7 .e C'l :s e .e - 'C CD 1) ~ "0 U CD :s c CD ~ ?ft. ~~ ci~ zu LL.:;) CDW .! 0:: 'fiCi c :s l!C" LL.w .e~ 0)_ :sO ON CD .E .5 -- cu 'C C'l E CD .5 .- ... .... -ucu II) CD 0 W=u CDO- u U cu CCDCD cu :s II) ~lj;o ....>c 'CCD'C CO::C :s 0 cu LL. e;:::: M O)o,! clI)c :WCCD cu 0 E O'C II) UCDII) _II)CD cu cu II) CDm.!! tIJ _..... ....0_ 0'" _ 011) II) 0 ciu CD:;) CDW LL.o:: CD CD 11)_ .- .a .ecu g 'c e~ LL. .e~ C'l_ :so ON ... 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(I) (I) ..e .0.0 ~~~EE o t\1 ::J (I) (I) N:;2:-'lao (I) (I) (/)0 co I co .- m ~ - ID ~ ri - m N ~ - - o to" ~ ~ N fit. - - iIj III (I) III ~ 00 - o N c Offi E (I) 0::: m m - ID ~ ri - m N ~ ~~MO ~MIDO ro~m~ M_COoo o~_oo -to"""':ID m~-~ -~-~- - - ~~~~ iIj III (I) III ~ 00 - o N c Offi E (I) 0::: Ordinance No. CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA ELECTRIC FRANCmSE FEE ORDINANCE AN ORDINANCE ESTABLISHING AN ELECTRIC SERVICE FRANCmSE FEE ON DAKOTA ELECTRIC ASSOCIATION, A MINNESOTA CORPORATION, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING ELECTRIC SERVICE WITHIN THE CITY PURSUANT TO ITS FRANCmSE. THE CITY COUNCIL OF THE CITY OF FARMINGTON, DAKOTA COUNTY, MINNESOTA ORDAINS: SECTION 1. Franchise Fee. In exchange for the franchise granted herein, Grantee (Dakota Electric Association) shall collect from its customers and pay to the Grantor an amount based on the following fee schedule after adjustment for the net write-off of uncollectible accounts and corrections of bills theretofore rendered, and according to the terms of Section 9 of the Franchise between City and Company: Class Fee Per Premise Per Month Residential Irrigation Small General- Non-Dem General- Demand Public Street Lighting C&I Interruptible $1.60 $2.00 $2.25 $25.00 $6.00 $25.00 The amount paid by Grantee shall be in lieu of, and Grantee shall be exempt from, all other occupation, license, excise or right-of-way permit fees or taxes which the City of Farmington may impose for the rights and privileges herein granted or for the privilege of doing business within the City of Farmington, and in the event any such fee, charge, license, tax or assessment shall be imposed by the Grantor, the payment to be made in accordance with the provisions of this section shall be reduced in an amount equal to the annual burden of such fee, charge, license, tax or assessment imposed upon the Grantee. Ad valorem property taxes imposed generally upon all real and personal property within the City of Farmington shall not be deemed to affect the obligation of the Grantee under this section. SECTION 2. Collection of the Fee: The fee is an account-based fee on each premise and not a meter-based fee. In the event that an entity covered by this ordinance has more than one meter at a single premise, but only one account, only one fee shall be assessed to that account. If a premise has two or more meters being billed at different rates, the Company may have an account for each rate classification, which will result in more than one franchise fee assessment for 1 18-9 electric service to that premise,. If the Company combines the rate classifications into a single account, the franchise fee assessed to the account will be the largest franchise fee applicable to a single rate classification for energy delivered to that premise. In the event any entities covered by the ordinance have more than one premise, each premise shall be subject to the appropriate fee. In the event a question arises as to the proper fee amount for any premise, the Company's manner of billing for energy used at all similar premises in the city will control. Grantee shall list the local franchise fee collected from customers as a separate item on bills for utility service issued to customers. If at any time the Minnesota Public Utilities Commission, or other authority having proper jurisdiction, prohibits such recovery, then Grantee will no longer be obligated to collect and pay the franchise fee herein contemplated. In addition, the Company may discount or reduce the fee payable for electricity delivered to a specific customer of the Company when it is required to reduce the franchise fee to retain the business of that customer. Modification or reduction of the franchise fee should occur if the fee would cause the customer to cease purchasing electricity from the Company by installing equipment to generate or purchase electricity not subject to the City's franchise fee. SECTION 3. Payment of the Fee. The franchise fee shall be payable by the Company quarterly and shall be based on the amount collected by Company during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for electric service in each class. The payment shall be due the last business day of the month following the period for which the payment is made. No franchise fee shall be payable by Company if Company is legally unable to first collect an amount equal to the franchise fee from its customers in each applicable class of customers by imposing a surcharge in Company's applicable rates for electric service. Company may pay the City the fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibles, refunds and correction of erroneous billings. The Company shall provide at the time of each payment a statement summarizing how the franchise fee payment was determined, including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for uncollectibles, refunds or error corrections. Company shall make its records available for inspection by the City at reasonable times provided that the City and its designated representative agree in writing not to disclose any information which would indicate the amount paid by any identifiable customer or customers or any other information regarding identified customers. SECTION 4. Surchare:e. The City recognizes that the Minnesota Public Utilities Commission allows the utility company to add a surcharge to customer rates to reimburse such utility company for the cost of the fee and that Company will surcharge its customers in the City the amount of the fee. SECTION 5. Enforcement. Any dispute, including enforcement of a default regarding this ordinance will be resolved in accordance with the Franchise Agreement. 2 18-10 SECTION 6. Effective Date. The franchise fee shall become after publication and ninety (90) days after written notice to the Company, and approval by the Minnesota Public Utilities Commission, as provided in the Franchise, and thereupon collection of the fee for all Customer Classes shall commence at the beginning of the Company's billing month. ADOPTED this _day of ,2010 by the City Council of the City of Farmington. CITY OF FARMINGTON By: Todd Larson, Mayor ATTEST: By: Peter J. Herlofsky, Jr., City Administrator Passed and approved by the <<GovBody>> of the <<CityType>> of <<Name>>, <<State>> on this _ day of <<MayorChr>> ATTEST: <<CityType>> Clerk 3 18-11 ELECTRIC FRANCmSE ORDINANCE ORDINANCE NO. CITY OF FARMINGTON, DAKOTA COUNTY, MINNESOTA AN ORDINANCE GRANTING TO DAKOTA ELECTRIC ASSOCIATION, A MINNESOTA CORPORATION, ITS SUCCESSORS AND ASSIGNS, PERMISSION TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN IN THE CITY OF FARMINGTON, MINNESOTA, AN ELECTRIC DISTRIBUTION SYSTEM AND TRANSMISSION LINES, INCLUDING NECESSARY POLES, LINES, FIXTURES AND APPURTENANCES, FOR THE FURNISIDNG OF ELECTRIC ENERGY TO THE CITY, ITS INHABITANTS, AND OTHERS, AND TO USE THE PUBLIC GROUNDS AND PUBLIC WAYS OF THE CITY FOR SUCH PURPOSES. THE CITY COUNCIL OF THE CITY OF FARMINGTON, DAKOTA COUNTY, MINNESOTA, ORDAINS: SECTION 1. DEFINITIONS. For purposes of this Ordinance, the following capitalized terms listed in alphabetical order shall have the following meanings: 1.1 City. The City of Farmington, County of Dakota, State of Minnesota. 1.2 City Utility System. Facilities used for providing non-energy related public utility service owned or operated by City or agency thereof, including sewer and water service, but excluding facilities for providing heating, lighting or other forms of energy. 1.3 Commission. The Minnesota Public Utilities Commission, or any successor agency or agencies, including an agency of the federal government, which preempts all, or part of the authority to regulate electric retail rates now vested in the Minnesota Public Utilities Commission. 1.4 Company. Dakota Electric Association, a Minnesota corporation, its successors and assigns. 1.5 Electric Facilities. Electric transmission and distribution towers, poles, lines, guys, anchors, conduits, fixtures, and necessary appurtenances owned or operated by Company for the purpose of providing electric energy for public use. 1.6 Notice. A written notice served by one party on the other party referencing one or more provisions of this Ordinance. Notice to Company shall be mailed to Dakota Electric Association, 4300 220th Street West, Farmington, MN 55024. Notice to the City shall be mailed to the City Administrator, City Hall, 430 Third Street, Farmington, MN 55024. Either party may 18-13 change its respective address for the purpose of this Ordinance by written notice to the other party . 1.7 Public Ground. Land owned by the City for park, open space or similar purpose, which is held for use in common by the public. 1.8 Public Way. Any street, alley, walkway or other public right-of-way within the City. SECTION 2. ADOPTION OF FRANCmSE. 2.1 Grant of Franchise. City hereby grants Company, for a period of 20 years from the date passed and approved by the City, the right to transmit and furnish electric energy for light, heat, power and other purposes for public and private use within and through the limits of the City as its boundaries now exist or as they may be extended in the future. For these purposes, Company may construct, operate, repair and maintain Electric Facilities in, on, over, under and across the Public Grounds and Public Ways of City, subject to the provisions of this Ordinance. Company may do all reasonable things necessary or customary to accomplish these purposes, subject, however, to such reasonable regulations as may be imposed by the City pursuant to ordinance and to the further provisions of this franchise agreement. 2.2 Effective Date; Written Acceptance. This franchise agreement shall be in force and effect from and after passage of this Ordinance, its acceptance by Company, and its publication as required by law. The City, by Council resolution, may revoke this franchise agreement if Company does not file a written acceptance with the City within 90 days after publication. 2.3 Service and Rates. The service to be provided and the rates to be charged by Company for electric service in City are subject to the jurisdiction of the Commission. The area within the City in which Company may provide electric service is subject to the provisions of Minnesota Statutes, Section 216B.40. 2.4 Publication Expense. The expense of publication of this Ordinance will be paid by City and reimbursed to City by Company. 2.5 Dispute Resolution. If either party asserts that the other party is in default in the performance of any obligation hereunder, the complaining party shall notify the other party ofthe default and the desired remedy. The notification shall be written. Representatives of the parties must promptly meet and attempt in good faith to negotiate a resolution of the dispute. If the dispute is not resolved within 30 days of the written notice, the parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of this mediator. If a mediator is not used, or if the parties are unable to resolve the dispute within 30 days after first meeting with the selected mediator, either party may commence an action in District Court to interpret and enforce this franchise or for such other relief as may be permitted by law or equity for breach of contract, or either party may take any other action permitted by law. 18-14 SECTION 3. LOCATION. OTHER REGULATIONS. 3.1 Location of Facilities. Electric Facilities shall be located, constructed and maintained so as not to interfere with the safety and convenience of ordinary travel along and over Public Ways and so as not to disrupt normal operation of any City Utility System previously installed therein. Electric Facilities shall be located on Public Grounds as determined by the City. Company's construction, reconstruction, operation, repair, maintenance and location of Electric Facilities shall be subject to permits if required by separate ordinance and to other reasonable regulations of the City to the extent not inconsistent with the terms of this franchise agreement. Company may abandon underground Electric Facilities in place, provided at the City's request, Company will remove abandoned metal or concrete encased conduit interfering with a City improvement project, but only to the extent such conduit is uncovered by excavation as part of the City improvement project. Abandoned facilities shall be subject to the provision of Minn. Rule 7819.3300. 3.2 Field Locations and Mapping Information. Company shall provide field locations for its underground Electric Facilities within City consistent with the requirements of Minnesota Statutes, Chapter 216D. Subject to the Homeland Security Act, or other confidentiality protections under state or federal law, the Company shall provide current mapping information for its Electric Facilities in accordance with the requirements of Minnesota Rules Parts 7819.4000 and 7819.4100. The Company shall provide this information electronically in a format mutually acceptable to the City and Company. 3.3 Street Openings. Company shall not open or disturb any Public Ground or Public Way for any purpose without first having obtained a permit from the City, if required by a separate ordinance, for which the City may impose a reasonable fee. Permit conditions imposed on Company shall not be more burdensome than those imposed on other utilities for similar facilities or work. Company may, however, open and disturb any Public Ground or Public Way without permission from the City where an emergency exists requiring the immediate repair of Electric Facilities. In such event Company shall notify the City by telephone to the office designated by the City as soon as practicable. Not later than the second working day thereafter, Company shall obtain any required permits and pay any required fees. 3.4 Restoration. After undertaking any work requiring the opening of any Public Ground or Public Way, Company shall restore the same, including paving and its foundation, in accordance with Minnesota Rules Part 7819.1100, to as good a condition as formerly existed, and shall maintain any paved surface in good condition for two years thereafter. The work shall be completed as promptly as weather permits, and if Company shall not promptly perform and complete the work, remove all dirt, rubbish, equipment and material, and put the Public Ground or Public Way in the said condition, the City shall have, after demand to Company to cure and the passage of a reasonable period of time following the demand, but not to exceed five days, the right to make the restoration at the expense of Company. Company shall pay to the City the cost of such work done for or performed by the City. This remedy shall be in addition to any other remedy available to the City for noncompliance with this Section 3.4, but the City hereby waives any requirement for Company to post a construction performance bond, certificate of insurance, 18-15 letter of credit or any other form of security or assurance that may be required, under a separate existing or future ordinance of the City, of a person or entity obtaining the City's permission to install, replace or maintain facilities in a Public Way. 3.5 Avoid Damage to Electric Facilities. Nothing in this Ordinance relieves any person from liability arising out of the failure to exercise reasonable care to avoid damaging Electric Facilities while performing any activity. 3.6 Notice of Improvements. The City must give Company reasonable notice of plans for improvements to Public Grounds or Public Ways where the City has reason to believe that Electric Facilities may affect or be affected by the improvement. The notice must contain: (i) the nature and character of the improvements, (H) the Public Grounds and Public Ways upon which the improvements are to be made, (Hi) the extent of the improvements, (iv) the time when the City will start the work, and (v) if more than one Public Ground or Public Way is involved, the order in which the work is to proceed. The notice must be given to Company a sufficient length of time in advance of the actual commencement of the work to permit Company to make any necessary additions, alterations or repairs to its Electric Facilities. 3.7 Shared Use of Poles. Company shall make space available on its poles or towers for City fire, water utility, police or other City facilities upon terms and conditions acceptable to Company whenever such use will not interfere with the use of such poles or towers by Company, by another electric utility, by a telephone utility, or by any cable television company or other form of communication company. In addition, the City shall pay for any added cost incurred by Company because of such use by City. Any City facilities shall be installed and maintained in accordance with the National Electrical Safety Code (NESC). SECTION 4. RELOCATIONS. 4.1 Relocation of Electric Facilities in Public Ways. Company shall comply with the requirements of Minnesota Rilles, Part 7819.3100 and applicable law relating to the relocation of Electric Facilities in Public Ways. If the City determines to vacate a Public Way, the City shall give Company reasonable notice of plans to vacate. If a relocation is ordered within five years of a prior relocation of the same Electric Facilities, which was made at Company expense, the City shall reimburse Company for non-betterment costs on a time and material basis, provided that if a subsequent relocation is required because of the extension of a City Utility System to a previously unserved area, Company may be required to make the subsequent relocation at its expense. 4.2 Relocation of Electric Facilities in Public Ground. City may require CompanYA at Company's expense, to relocate or remove its Electric Facilities from Public Ground upon a finding by City that the Electric Facilities have become or will become a substantial impairment to the existing or proposed public use of the Public Ground. 4.3 Change to Underground. If required by the City, the Company shall change from aerial to underground, at City expense based on the Company's time and material costs in any area where: (1) the City requests underground lines and all other lines hereafter are changed 18-16 from aerial to underground, or (2) any aerial line is changed to underground by the open trench method and the City requests the Company to share the trench with telephone and/or cable television, and the Company can share trench at a cost not to exceed the Company's pro rata share of the cost of the trenching. The City may pay any costs incurred hereunder through a surcharge on the Company's customers located within the City. 4.4 Proiects with Federal Funding. Relocation, removal, or rearrangement of any Company Electric Facilities made necessary because of the extension into or through City of a federally-aided highway project shall be governed by the provisions of Minnesota Statutes, Section 161.46, as supplemented or amended. It is understood that the right herein granted to Company is a valuable right. City shall not order Company to remove or relocate its Electric Facilities when a Public Way is vacated, improved or realigned because of a renewal or a redevelopment plan which is financially subsidized in whole or in part by the Federal Government or any agency thereof, unless the reasonable non-betterment costs of such relocation and the loss and expense resulting therefrom are fIrst paid to Company, but the City need not pay those portions of such for which reimbursement to it is not available. 4.5 No Waiver. The provisions of this franchise apply only to facilities constructed in reliance on a franchise from the City and shall not be construed to waive or modify any rights obtained by Company for installations within a Company right-of-way acquired by easement or prescriptive right before the applicable Public Ground or Public Way was established, or Company's rights under state or county permit. SECTION 5. TREE TRIMMING. Company may trim all trees and shrubs in the Public Grounds and Public Ways of City to the extent Company fmds necessary to avoid interference with the proper construction, operation, repair and maintenance of any Electric Facilities installed hereunder, provided that Company shall save the City harmless from any liability arising therefrom, and subject to permit or other reasonable regulation by the City. SECTION 6. INDEMNIFICATION. 6.1 Indemnity of City. Company shall indemnify, keep and hold the City free and harmless from any and all liability on account of injury to persons or damage to property occasioned by the construction, maintenance, repair, inspection, the issuance of permits, or the operation of the Electric Facilities located in the Public Grounds and Public Ways. The City shall not be indemnifIed for losses or claims occasioned through its own negligence except for losses or claims arising out of or alleging the City's negligence as to the issuance of permits for, or inspection of, Company's plans or work. The City shall not be indemnifIed if the injury or damage results from the performance in a proper manner of acts reasonably deemed hazardous by Company, and such performance is nevertheless ordered or directed by City after notice of Company's determination. 6.2 Defense of City. In the event a suit is brought against the City under circumstances where this agreement to indemnify applies, Company at its sole cost and expense 18-17 shall defend the City in such suit if written notice thereof is promptly given to Company within a period wherein Company is not prejudiced by lack of such notice. If Company is required to indemnify and defend, it will thereafter have control of such litigation, but Company may not settle such litigation without the consent of the City, which consent shall not be unreasonably withheld. This section is not, as to third parties, a waiver of any defense or immunity otherwise available to the City and Company, in defending any action on behalf of the City, shall be entitled to assert in any action every defense or immunity that the City could assert in its own behalf. SECTION 7. VACATION OF PUBLIC WAYS. The City shall give Company at least two weeks prior written notice of a proposed vacation of a Public Way. Except where required for a City improvement project, the vacation of any Public Way, after the installation of Electric Facilities, shall not operate to deprive Company of its rights to operate and maintain such Electric Facilities, until the reasonable cost of relocating the same and the loss and expense resulting from such relocation are first paid to Company. In no case, however, shall City be liable to Company for failure to specifically preserve a right-of-way under Minnesota Statutes, Section 160.29. SECTION 8. CHANGE IN FORM OF GOVERNMENT. Any change in the form of government of the City shall not affect the validity of this Ordinance. Any governmental unit succeeding the City shall, without the consent of Company, succeed to all of the rights and obligations of the City provided in this Ordinance. SECTION 9. FRANCmSE FEE. 9.1 Fee Schedule. During the term of the franchise hereby granted, and in lieu of any permit or other fees being imposed on Company, the City may impose on Company a franchise fee by collecting the amounts indicated in a Fee Schedule set forth in a separate ordinance from each customer in the designated Company Customer Class. The parties have agreed that the franchise fee collected by the Company and paid to the City in accordance with this Section 9 shall not exceed the following amounts. Class Fee Per Premise Per Month Residential Irrigation Small General- Non-Dem General- Demand Public Street Lighting C&I Interruptible $1.60 $2.00 $2.25 $25.00 $6.00 $25.00 9.2 Separate Ordinance. The franchise fee shall be imposed by a separate ordinance duly adopted by the City Council, which ordinance shall not be adopted until at least 60 days after written notice enclosing such proposed ordinance has been served upon Company by 18-18 certified mail. The fee shall not become effective until the beginning of a Company billing month at least 90 days after written notice enclosing such adopted ordinance has been served upon Company by certified mail, and Company has received any necessary approvals from the Commission. Section 2.5 shall constitute the sole remedy for solving disputes between Company and the City in regard to the interpretation of, or enforcement of, the separate ordinance. No action by the City to implement a separate ordinance will commence until this Ordinance is effective. A separate ordinance which imposes a lesser franchise fee on the residential class of customers than the maximum amount set forth in Section 9.1 above shall not be effective against Company unless the fee imposed on each other customer classification is reduced proportionately in the same or greater amount per class as the reduction represented by the lesser fee on the residential class. 9.3 Terms Defined For the purpose ofthis Section 9, the following definitions apply: 9.3.1 "Customer Class" shall refer to the classes listed on the Fee Schedule and as defined or determined in Company's electric tariffs on file with the Commission. , 9.3.2 "Fee Schedule" refers to the schedule in Section 9.1 setting forth the various customer classes from which a franchise fee would be collected if a separate ordinance were implemented immediately after the effective date of this franchise agreement. The Fee Schedule in the separate ordinance may include new Customer Class added by Company to its electric tariffs after the effective date of this franchise agreement. 9.4 Collection of the Fee. The franchise fee shall be payable quarterly and shall be based on the amount collected by Company during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for electric service in each class. The payment shall be due the last business day of the month following the period for which the payment is made. The franchise fee may be changed by ordinance from time to time; however, each change shall meet the same notice requirements and not occur more often than annually and no change shall require a collection from any customer for electric service in excess of the amounts specifically permitted by this Section 9. The time and manner of collecting the franchise fee is subject to the approval of the Commission. No franchise fee shall be payable by Company if Company is legally unable to first collect an amount equal to the franchise fee from its customers in each applicable class of customers by imposing a surcharge in Company's applicable rates for .. electric service. Company may pay the City the fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibles, refunds and correction of erroneous billings. Company agrees to make its records available for inspection by the City at reasonable times provided that the City and its designated representative agree in writing not to disclose any information which would indicate the amount paid by any identifiable customer or customers or any other information regarding identified customers. In addition, the Company agrees to provide at the time of each payment a statement summarizing how the franchise fee payment was determined, including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for any uncollectibles, refunds or error corrections. 18-19 9.5 Equivalent Fee Requirement. The separate ordinance imposing the fee shall not be effective against Company unless it lawfully imposes and the City monthly or more often collects a fee or tax of the same or greater equivalent amount on the receipts from sales of energy within the City by any other energy supplier, provided that, as to such a supplier, the City has the authority to require a franchise fee or to impose a tax. The "same or greater equivalent amount" shall be measured, if practicable, by comparing amounts collected as a franchise fee from each similar customer, or by comparing, as to similar customers the percentage of the annual bill represented by the amount collected for franchise fee purposes. The franchise fee or tax shall be applicable to energy sales for any energy use related to heating, cooling or lighting, or to run machinery and appliances, but shall not apply to energy sales for the purpose of providing fuel for vehicles. If the Company specifically consents in writing to a franchise or separate ordinance collecting or failing to collect a fee from another energy supplier in contravention of this Section 9.5, the foregoing conditions will be waived to the extent of such written consent. SECTION 10. PROVISIONS OF ORDINANCE. 10.1 Severability. Every section, provision, or part of this Ordinance is declared separate from every other section, provision, or part and if any section, provision, or part shall be held invalid, it shall not affect any other section, provision, or part. Where a provision of any other City ordinance conflicts with the provisions of this Ordinance, the provisions of this Ordinance shall prevail. 10.2 Limitation on Applicability. This Ordinance constitutes a franchise agreement between the City and Company as the only parties, and no provision of this franchise shall in any way inure to the benefit of any third person (including the public at large) so as to constitute any such person as a third party beneficiary of the agreement or of anyone or more of the terms hereof, or otherwise give rise to any cause of action in any person not a party hereto. SECTION 11. AMENDMENT PROCEDURE. Either party to this franchise agreement may at any time propose that the agreement be amended to address a subject of concern and the other party will consider whether it agrees that the amendment is mutually appropriate. If an amendment is agreed upon, this Ordinance may be amended at any time by the City passing a subsequent ordinance declaring the provisions of the amendment, which amendatory ordinance shall become effective upon the filing of Company's written consent thereto with the City Clerk within 90 days after the date of fmal passage by the City of the amendatory ordinance. SECTION 12. PREVIOUS FRANCEUSES SUPERSEDED. This franchise supersedes any previous electric franchise granted to Company or its predecessor. Passed and approved: ,2010. 18-20 Attest: City Clerk Date Published: Mayor 18-21 Ordinance No. CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA NATURAL GAS FRANCmSE FEE ORDINANCE AN ORDINANCE ESTABLISIDNG A NATURAL GAS SERVICE FRANCmSE FEE ON MINNESOTA ENERGY RESOURCES, A MINNESOTA CORPORATION, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING NATURAL GAS SERVICE WITIDN THE CITY PURSUANT TO ITS FRANCmSE. THE CITY COUNCIL OF THE CITY OF FARMINGTON, DAKOTA COUNTY, MINNESOTA ORDAINS: SECTION 1. Franchise Fee. In exchange for the franchise granted herein, Grantee (Minnesota Energy Resources) shall collect from its customers and pay to the Grantor an amount based on the following fee schedule after adjustment for the net write-off of uncollectible accounts and corrections of bills theretofore rendered: CUSTOMER CLASS Residential Commercial Firm Commercial Interruptible Industrial Firm Industrial Interruptible Transportation FEE /Month/Customer /Month/Customer /Month/Customer /Month/Customer /Month/Customer /Month/Customer $ $ $ $ $ $ The amount paid by Grantee shall be in lieu of, and Grantee shall be exempt from, all other occupation, license, excise or right-of-way permit fees or taxes which the City of Farmington may impose for the rights and privileges herein granted or for the privilege of doing business within the City of Farmington, and in the event any such fee, charge, license, tax or assessment shall be imposed by the Grantor, the payment to be made in accordance with the provisions of this section shall be reduced in an amount equal to the annual burden of such fee, charge, license, tax or assessment imposed upon the Grantee. Ad valorem property taxes imposed generally upon all real and personal property within the City of Farmington shall not be deemed to affect the obligation of the Grantee under this section. SECTION 2. Collection of the Fee: The fee is an account-based fee on each premise and not a meter-based fee. In the event that an entity covered by this ordinance has more than one meter at a single premise, but only one account, only one fee shall be assessed to that account. If a premise has two or more meters being billed at different rates, the Company may have an account for each rate classification, which will result in more than one franchise fee assessment for natural gas service to that premise,. If the Company combines the rate classifications into a single account, the franchise fee assessed to the account will be the largest franchise fee applicable to a single rate classification for energy delivered to that premise. In the event any entities covered by the ordinance have more than one premise, each premise shall be subject to 1 18-23 the appropriate fee. In the event a question arises as to the proper fee amount for any premise, the Company's manner of billing for energy used at all similar premises in the city will control. Grantee shall list the local franchise fee collected from customers as a separate item on bills for utility service issued to customers. If at any time the Minnesota Public Utilities Commission, or other authority having proper jurisdiction, prohibits such recovery, then Grantee will no longer be obligated to collect and pay the franchise fee herein contemplated. In addition, the Company may discount or reduce the fee payable for natural gas delivered to a specific customer of the Company when it is required to reduce the franchise fee to retain the business of that customer. Modification or reduction of the franchise fee should occur if the fee would cause the customer to cease purchase or transportation deliveries of natural gas from the Company by installing equipment to access the natural gas supply not subject to the City's franchise fee. SECTION 3. Payment of the Fee. The franchise fee shall be payable by the Company quarterly and shall be based on the amount collected by Company during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for natural gas service in each class. The payment shall be due the last business day of the month following the period for which the payment is made. No franchise fee shall be payable by Company if Company is legally unable to first collect an amount equal to the franchise fee from its customers in each applicable class of customers by imposing a surcharge in Company's applicable rates for natural gas service. Company may pay the City the fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibl~s, refunds and correction of erroneous billings. The Company shall provide at the time of each payment a statement summarizing how the franchise fee payment was determined. Including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for uncollectibles, refunds or error corrections. Company shall make its records available for inspection by the City at reasonable times. SECTION 4. Surcharge. The City recognizes that the Minnesota Public Utilities Commission allows the utility company to add a surcharge to customer rates to reimburse such utility company for the cost of the fee and that Company will surcharge its customers in the City the amount of the fee. SECTION 5. Enforcement. Any dispute, including enforcement of a default regarding this ordinance will be resolved in accordance with the Franchise Agreement. SECTION 6. Effective Date. The franchise fee shall become after publication and ninety (90) days after written notice to the Company as provided in the Franchise, and thereupon collection of the fee for all Customer Classes shall commence at the beginning of the Company's billing month. ADOPTED this _day of , 2010 by the City Council of the City of Farmington. 2 18-24 CITY OF FARMINGTON By: ATTEST: By: Todd Larson, Mayor Passed and approved by the <<GovBody>> of the <<CityType>> of <<Name>>, <<State>> on this _ day of Peter J. Herlofsky, Jr., City Administrator ATTEST: <<CityType>> Clerk 3 <<MayorCbr>> 18-25 Ordinance No. CITY OF FARMINGTON DAKOTACOUNTY,NITNNESOTA NATURAL GAS FRANCmSE FEE ORDINANCE AN ORDINANCE ESTABLISHING A NATURAL GAS SERVICE FRANCmSE FEE ON MINNESOTA ENERGY RESOURCES, A NITNNESOTA CORPORATION, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING NATURAL GAS SERVICE WITHIN THE CITY PURSUANT TO ITS FRANCmSE. THE CITY COUNCIL OF THE CITY OF FARMINGTON, DAKOTA COUNTY, MINNESOTA ORDAINS: SECTION 1. Franchise Fee. In exchange for the franchise granted herein, Grantee (Minnesota Energy Resources) shall collect from its customers and pay to the Grantor an amount based on the following fee schedule after adjustment for the net write-off of uncollectible accounts and corrections of bills theretofore rendered and according to the terms of Section 9 of the Franchise between City and Company: CUSTOMER CLASS Residential Commercial Finn Commercial Interruptible FEE $1.60/Month/Customer $15.00 /Month/Customer $25.00 /Month/Customer The amount paid by Grantee shall be in lieu of, and Grantee shall be exempt from, all other occupation, license, excise or right-of-way permit fees or taxes which the City of Farmington may impose for the rights and privileges herein granted or for the privilege of doing business within the City of Farmington, and in the event any such fee, charge, license, tax or assessment shall be imposed by the Grantor, the payment to be made in accordance with the provisions of this section shall be reduced in an amount equal to the annual burden of such fee, charge, license, tax or assessment imposed upon the Grantee. Ad valorem property taxes imposed generally upon all real and personal property within the City of Farmington shall not be deemed to affect the obligation ofthe Grantee under this section. SECTION 2. Collection of the Fee. The fee is an account-based fee on each premise and not a meter-based fee. In the event that an entity covered by this ordinance has more than one meter at a single premise, but only one account, only one fee shall be assessed to that account. If a premise has two or more meters being billed at different rates, the Grantee may have an account for each rate classification, which will result in more than one franchise fee assessment for natural gas service to that premise,. If the Grantee combines the rate classifications into a single account, the franchise fee assessed to the account will be the largest franchise fee applicable to a single rate classification for energy delivered to that premise. In the event any entities covered by the ordinance have more than one premise, each premise shall be subject to the appropriate fee. 1 18-27 In the event a question arises as to the proper fee amount for any premise, the Grantee's manner of billing for energy used at all similar premises in the city will control. Grantee shall list the local franchise fee collected from customers as a separate item on bills for utility service issued to customers. If at any time the Minnesota Public Utilities Commission, or other authority having proper jurisdiction, prohibits such recovery, then Grantee will no longer be obligated to collect and pay the franchise fee herein contemplated. In addition, the Grantee may discount or reduce the fee payable for natural gas delivered to a specific customer of the Company when it is required to reduce the franchise fee to retain the business ofthat customer. Modification or reduction of the franchise fee should occur if the fee would cause the customer to cease purchase or transportation deliveries of natural gas from the Company by installing equipment to access the natural gas supply not subject to the City's franchise fee. SECTION 3. Payment of the Fee. The franchise fee shall be payable by the Grantee quarterly and shall be based on the amount collected by Grantee during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for natural gas service in each class. The payment shall be due the last business day of the month following the period for which the payment is made. No franchise fee shall be payable by the Grantee if the Company is legally unable to first collect an amount equal to the franchise fee from its customers in each applicable class of customers by imposing a surcharge in Grantee's applicable rates for natural gas service. Grantee may pay the Grantor the fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibles, refunds and correction of erroneous billings. The Grantee shall provide at the time of each payment a statement summarizing how the franchise fee payment was determined. Including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for uncollectibles, refunds or error corrections. Grantee shall make its records available for inspection by the Grantor at reasonable times provided that the City and its designated representative agree in writing not to disclose any information which would indicate the amount paid by any identifiable customer or customers or any other information regarding identified customers SECTION 4. Surchare:e. The Grantor recognizes that the Minnesota Public Utilities Commission allows the utility company to add a surcharge to customer rates to reimburse such utility company for the cost of the fee and that Grantee will surcharge its customers in the City the amount of the fee. SECTION 5. Enforcement. Any dispute, including enforcement of a default regarding this ordinance will be resolved in accordance with the Franchise Agreement. SECTION 6. Effective Date. The franchise fee shall become effective after publication and ninety (90) days after written notice to the Company and approval from the Minnesota Public Utilities Commission, as provided in the Franchise but not before. 2 18-28 ADOPTED this _day of ATTEST: SEAL Approved as to form the ,2010 by the City Council of the City of Farmington. CITY OF FARMINGTON By: day of By: Todd Larson, Mayor Peter J. Herlofsky, Jr., City Administrator 2010. By: City Attorney 3 18-29 Ordinance No. CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA ELECTRIC FRANCHISE FEE ORDINANCE AN ORDINANCE ESTABLISHING AN ELECTRIC SERVICE FRANCHISE FEE ON NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, DIBI A XCEL ENERGY, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING ELECTRIC SERVICE WITHIN THE CITY PURSUANT TO ITS FRANCHISE. THE CITY COUNCIL OF THE CITY OF FARMINGTON, DAKOTA COUNTY, MINNESOTA ORDAINS: SECTION 1. Franchise Fee. In exchange for the franchise granted herein, Northern States Power Company, a Minnesota corporation (NSP) and City of Farmington (City) shall collect from its customers and pay to the City an amount based on the following fee schedule after adjustment for the net write-off of uncollectible accounts and corrections of bills theretofore rendered, and according to the terms of Section 9 of the Franchise between City and Company: Class Fee Per Premise Per Month Residential SmaIl General- Non-Demand SmaIl C&I Demand Large C&I Public Street Lighting Municipal Pumping Non-Demand Municipal Pumping $ 1.60 $ 2.25 $ 25.00 $ 75.00 $ 6.00 $ .50 $ 10.00 The amount paid by NSP shall be in lieu of, and NSP shall be exempt from, all other occupation, license, excise or right-of-way permit fees or taxes which the City of Farmington may impose for the rights and privileges herein granted or for the privilege of doing business within the City of Farmington, and in the event any such fee, charge, license, tax or assessment shall be imposed by the City, the payment to be made in accordance with the provisions of this section shall be reduced in an amount equal to the annual burden of such fee, charge, license, tax or assessment imposed upon the NSP. Ad valorem property taxes imposed generally upon all real and personal property within the City of Farmington shall not be deemed to affect the obligation of the NSP under this section. SECTION 2. Collection of the Fee: The fee is an account-based fee on each premise and not a meter-based fee. In the event that an entity covered by this ordinance has more than one meter at a single premise, but only one account, only one fee shall be assessed to that account. If a premise has two or more meters being billed at different rates, the Company may have an account for each rate classification, which will result in more than one franchise fee assessment for electric service to that premise,. If the Company combines the rate classifications into a single account, the franchise fee assessed to the account will be the largest franchise fee applicable to a single rate classification for energy delivered to that premise. In the event any entities covered by the ordinance have more than 1 1 8-31 one premise, each premise shall be subject to the appropriate fee. In the event a question arises as to the proper fee amount for any premise, the Company's manner of billing for energy used at all similar premises in the city will control. NSP shall list the local franchise fee collected from customers as a separate item on bills for utility service issued to customers. If at any time the Minnesota Public Utilities Commission, or other authority having proper jurisdiction, prohibits such recovery, then NSP will no longer be obligated to collect and pay the franchise fee herein contemplated. In addition, the Company may discount or reduce the fee payable for electricity delivered to a specific customer of the Company when it is required to reduce the franchise fee to retain the business of that customer. Modification or reduction of the franchise fee should occur if the fee would cause the customer to cease purchasing electricity from the Company by installing equipment to generate or purchase electricity not subject to the City's franchise fee. SECTION 3. Payment of the Fee. The franchise fee shall be payable by the Company quarterly and shall be based on the amount collected by Company during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for electric service in each class. The payment shall be due the last business day of the month following the period for which the payment is made. No franchise fee shall be payable by Company if Company is legally unable to first collect an amount equal to the franchise fee from its customers in each applicable class of customers by imposing a surcharge in Company's applicable rates for electric service. Company may pay the City the fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibles, refunds and correction of erroneous billings. The Company shall provide at the time of each payment a statement snmmlUjzing how the franchise fee payment was determined, including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for uncollectibles, refunds or error corrections. Company shall make its records available for inspection by the City at reasonable times provided that the City and its designated representative agree in writing not to disclose any information which would indicate the amount paid by any identifiable customer or customers or any other information regarding identified customers. SECTION 4. Surcharge. The City recognizes that the Minnesota Public Utilities Commission allows the utility company to add a surcharge to customer rates to reimburse such utility company for the cost of the fee and that Company will surcharge its custom:ers in the City the amount of the fee. SECTION 5. Enforcement. Any dispute, including enforcement of a default regarding this ordinance will be resolved in accordance with the Franchise Agreement. SECTION 6. Effective Date. The franchise fee shall become after publication and ninety (90) days after written notice to the Company, and approval by the Minnesota Public Utilities Commission, as provided in the Franchise, and thereupon collection of the fee for all Customer Classes shall commence at the beginning of the Company's billing month. ADOPTED this _day of ,2010 by the City Council of the City of Farmington. 2 18-32 CITY OF FARMINGTON By: Todd Larson, Mayor ATTEST: By: Peter J. Herlofsky, Jr., City Administrator Passed and approved by the City Council of the City of Farmington, State of Minnesota on ,2010. Mayor Attest: City Administrator 3 18-33 \ ELECTRIC FRANCmSE ORDINANCE ORDINANCE NO. CITY OF FARMINGTON, DAKOTA COUNTY, MINNESOTA AN ORDINANCE GRANTING TO NORTHERN STATES POWER COMPANY, A MINNESOTA CORPORATION, D/B/A XCEL ENERGY, ITS SUCCESSORS AND ASSIGNS, PERMISSION TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN IN THE CITY OF FARMINGTON, ~SOTA, AN ELECTRIC DISTRIBUTION SYSTEM AND TRANSMISSION LINES, INCLUDING NECESSARY POLES, LINES, FIXTURES AND APPURTENANCES, FOR THE FURNISHING OF ELECTRIC ENERGY TO THE CITY, ITS INHABITANTS, AND OTHERS, AND TO USE THE PUBLIC GROUNDS AND PUBLIC WAYS OF THE CITY FOR SUCH PURPOSES. THE CITY COUNCIL OF THE CITY OF FARMINGTON, DAKOTA COUNTY, MINNESOTA, ORDAINS: SECTION 1. DEFINITIONS. For purposes of this Ordinance, the following capitalized terms listed in alphabetical order shall have the following meanings: 1.1 City. The City of Farmington, County of Dakota, State of Minnesota. 1.2 . City Utility System. Facilities used for providing non-energy related public utility service owned or operated by City or agency thereof, including sewer and water service, but excluding facilities for providing heating, lighting or other forms of energy. 1.3 Commission. The Minnesota Public Utilities Commission, or any successor agency or agencies, including an agency of the federal government, which preempts all, or part of the authority to regulate electric retail rates now vested in the Minnesota Public Utilities Commission. 1.4 Company. Northern States Power Company, a Minnesota corporation, d/b/a Xcel Energy, a Minnesota corporation, its successors and assigns. 1.5 Electric Facilities. Electric transmission and distribution towers, poles, lines, guys, anchors, conduits, fixtures, and necessary appurtenances owned or operated by Company for the purpose of providing electric energy for public use. 1.6 Notice. A written notice served by one party on the other party referencing one or more provisions of this Ordinance. Notice to Company shall be mailed to Xcel Energy, 414 Nicollet Mall, 5th Floor, Minneapolis, MN 55401. Notice to the City shall be mailed to the City 1 1.8-35 Administrator, City Hall, 430 Third Street, Farmington, MN 55024. Either party may change its respective address for the purpose of this Ordinance by written notice to the other party. 1.7 Public Ground. Land owned by the City for park, open space or similar purpose, which is held for use in common by the public. 1.8 Public Way. Any street, alley, walkway or other public right-of-way within the City. SECTION 2. ADOPTION OF FRANCmSE. 2.1 Grant of Franchise. City hereby grants Company, for a period of 20 years from the date passed and approved by the City, the right to transmit and furnish electric energy for light, heat, power and other purposes for public and private use within and through the limits of the City as its boundaries now exist or as they may be extended in the future. For these purposes, Company may construct, operate, repair and maintain Electric Facilities in, on, over, under and across the Public Grounds and Public Ways of City, subject to the provisions of this Ordinance. Company may do all reasonable things necessary or customary to accomplish these purposes, subject, however, to such reasonable regulations as may be imposed by the City pursuant to ordinance and to the further provisions of this franchise agreement. 2.2 Effective Date: Written Acceptance. This franchise agreement shall be in force and effect from and after passage of this Ordinance, its acceptance by Company, and its publication as required by law. The CityA by Council resolutionA may revoke this franchise agreement if Company does not file a written acceptance with the City within 90 days after publication. 2.3 Service and Rates. The service to be provided and the rates to be charged by Company for electric service in City are subject to the jurisdiction of the Commission. The area within the City in which Company may provide electric service is subject to the provisions of Minnesota Statutes, Section 216BAO. 2.4 Publication Expense. The expense of publication of this Ordinance will be paid by City and reimbursed to City by Company. 2.5 Dispute Resolution. If either party asserts that the other party is in default in the performance of any obligation hereunder, the complaining party shall notify the other party of the default and the desired remedy. The notification shall be written. Representatives of the parties must promptly meet and attempt in good faith to negotiate a .resolution of the dispute. If the dispute is not resolved within 30 days of the written notice, the parties may jointly select a mediator to facilitate further discussion. The parties will equally share the fees and expenses of this mediator. If a mediator is not usedA or if the parties are unable to resolve the dispute within 30 days after first meeting with the selected mediator, either party may commence an action in District Court to interpret and enforce this franchise or for such other relief as may be permitted by law or equity for breach of contract, or either party may take any other action permitted by law. 2 18-36 \ SECTION 3. LOCATION. OTHER REGULATIONS. 3.1 Location of Facilities. Electric Facilities shall be located, constructed and maintained so as not to interfere with the safety and convenience of ordinary travel along and over Public Ways and so as not to disrupt normal operation of any City Utility System previously installed therein. Electric Facilities shall be located on Public Grounds as determined by the City. Company's construction, reconstruction, operation, repair, maintenance and location of Electric Facilities shall be subject to permits if required by separate ordinance and to other reasonable regulations of the City to the extent not inconsistent with the terms of this franchise agreement. Company may abandon underground Electric Facilities in place, provided at the City's request, Company will remove abandoned metal or concrete encased conduit interfering with a City improvement project, but only to the extent such conduit is uncovered by excavation as part of the City improvement project. Abandoned facilities shall be subject to the provision of Minn. Rule7819. 3.2 Field Locations and Mapping Information. Company shall provide field locations for its underground Electric Facilities within City consistent with the requirements of Minnesota Statutes, Chapter 216D. Subject to the Homeland Security Act, or other confidentiality protections under state or federal law, the Company shall provide current mapping information for its Electric Facilities in accordance with the requirements of Minnesota rules Part s7819.4000 and 7819.4100. The Company shall provide this information electronically in a format mutually acceptable to the the City and Company. 3.3 Street Openings. Company shall not open or disturb any Public Ground or Public Way for any purpose without first having obtained a permit from the City, if required by a separate ordinance, for which the City may impose a reasonable fee. Permit conditions imposed on Company shall not be more burdensome than those imposed on other utilities for similar facilities or work. Company may, however, open and disturb any Public Ground or Public Way without permission from the City where an emergency exists requiring the immediate repair of Electric Facilities. In such event Company shall notify the City by telephone to the office designated by the City as soon as practicable. Not later than the second working day thereafter, Company shall obtain any required permits and pay any required fees. 3.4 Restoration. After undertaking any work requiring the opening of any Public Ground or Public Way, Company shall restore the same, including paving and its foundation, in accordance with Minnesota Rilles Part 7819.1100, to as good a condition as formerly existed, and shall maintain any paved surface in good condition for two years thereafter. The work shall be completed as promptly as weather permits, and if Company shall not promptly perform and complete the work, remove all dirt, rubbish, equipment and material, and put the Public Ground or Public Way in the said condition, the City shall have, after demand to Company to cure and the passage of a reasonable period of time following the demand, but not to exceed five days, the right to make the restoration at the expense of Company. Company shall pay to the City the cost of such work done for or performed by the City. This remedy shall be in addition to any other remedy available to the City for noncompliance with this Section 3.4, but the City hereby waives any requirement for Company to post a construction performance bond, certificate of insurance, 3 18-37 letter of credit or any other form of security or assurance that may be required, under a separate existing or future ordinance of the City, of a person or entity obtaining the City's permission to install, replace or maintain facilities in a Public Way. 3.5 Avoid Damage to Electric Facilities. Nothing in this Ordinance relieves any person from liability arising out of the failure to exercise reasonable care to avoid damaging Electric Facilities while performing any activity. 3.6 Notice of Improvements. The City must give Company reasonable notice of plans for improvements to Public Grounds or Public Ways where the City has reason to believe that Electric Facilities may affect or be affected by the improvement. The notice must contain: (i) the nature and character of the improvements, (ii) the Public Grounds and Public Ways upon which the improvements are to be made, (Hi) the extent of the improvements, (iv) the time when the City will start the work, and (v) if more than one Public Ground or Public Way is involved, the order in which the work is to proceed. The notice must be given to Company a sufficient length of time in advance of the actual commencement of the work to permit Company to make any necessary additions, alterations or repairs to its Electric Facilities. 3.7 Shared Use of Poles. Company shall make space available on its poles or towers for City fIre, water utility, police or other City facilities upon terms and conditions acceptable to Company whenever such use will not interfere with the use of such poles or towers by Company, by another electric utility, by a telephone utility, or by any cable television company or other form of communication company. In addition, the City shall pay for any added cost incurred by Company because of such use by City. Any City facilities shall be installed and maintained in accordance with the National Electrical Safety Code (NESC). SECTION 4. RELOCATIONS. 4.1 Relocation of Electric Facilities in Public Ways. Company shall comply with the requirements of Minnesota Rules, Part 7819.3100 and applicable law relating to the relocation of Electric Facilities in Public Ways. If the City determines to vacate a Public Way, the City shall give Company reasonable notice of plants to vacate. If a relocation is ordered within fIve years or a prior relocation of the same Electric Facilities, which was made at Company expense, the City shall reimburse Company for non-betterment costs on a time and material basis, provided that if a subsequent relocation is required because of the extension of a City Utility System to a previously unserved area, Company may be required to make the subsequent relocation at its expense. 4.2 Relocation of Electric Facilities in Public Ground. City may require CompanYJl at Company's expense, to relocate or remove its Electric Facilities from Public Ground upon a fmding by City that the Electric Facilities have become or will become a substantial impairment to the existing or proposed public use of the Public Ground. 4.3 Change to Underground. If required by the City, the Company shall change from aerial to underground, at City expense based on the Company!) time and material costs in any area where: (1) the City requests underground lines and all other lines hereafter are changed 4 18-38 from aerial to underground, or (2) any aerial line is changed to underground by the open trench method and the City requests the Company to share the trench with telephone and/or. cable television, and the Company can share trench at a cost not to exceed the Company!) pro rata share of the cost of the trenching. The City may pay any costs incurred hereunder through a surcharge on the Company's customers located within the City. 4.4 Proiects with Federal Funding. Relocation, removal, or rearrangement of any Company Electric Facilities made necessary because of the extension into or through City of a federally-aided highway project shall be governed by the provisions of Minnesota Statutes, Section 161.46, as supplemented or amended. It is understood that the right herein granted to Company is a valuable right. City shall not order Company to remove or relocate its Electric Facilities when a Public Way is vacated, improved or realigned because of a renewal or a redevelopment plan which is financially subsidized in whole or in part by the Federal Government or any agency thereof, unless the reasonable non-betterment costs of such relocation and the loss and expense resulting therefrom are first paid to Company, but the City need not pay those portions of such for which reimbursement to it is not available. 4.5 No Waiver. The provisions of this franchise apply only to facilities constructed in reliance on a franchise from the City and shall not be construed to waive or modify any rights obtained by Company for installations within a Company right-of-way acquired by easement or prescriptive right before the applicable Public Ground or Public Way was established, or Company's rights under state or county permit. SECTION 5. TREE TRIMMING. Company may trim all trees and shrubs in the Public Grounds and Public Ways of City to the extent Company finds necessary to avoid interference with the proper construction, operation, repair and maintenance of any Electric Facilities installed hereunder, provided that Company shall save the City harmless from any liability arising therefrom, and subject to permit or other reasonable regulation by the City. SECTION 6. INDEMNIFICATION. 6.1 Indemnity of City. Company shall indemnify, keep and hold the City free and harmless from any and all liability on account of injury to persons or damage to property occasioned by the construction, maintenance, repair, inspection, the issuance of permits, or the operation of the Electric Facilities located in the Public Grounds and Public Ways. The City shall not be indemnified for losses or claims occasioned through its own negligence except for losses or claims arising out of or alleging the City's negligence as to the issuance of permits for, or inspection of, Company's plans or work. The City shall not be indemnified if the injury or damage results from the performance in a proper manner~ of acts reasonably deemed hazardous by Company, and such performance is nevertheless ordered or directed by City after notice of Company's determination. 6.2 Defense of City. In the event a suit is brought against the City under circumstances where this agreement to indemnify applies, Company at its sole cost and expense 5 18-39 shall defend the City in such suit if written notice thereof is promptly given to Company within a period wherein Company is not prejudiced by lack of such notice. If Company is required to indemnify and defend, it will thereafter have control of such litigation, but Company may not settle such litigation without the consent of the City, which consent shall not be unreasonably withheld. This section is not, as to third parties, a waiver of any defense or immunity otherwise available to the City and Company, in defending any action on behalf of the City~ shall be entitled to assert in any action every defense or immunity that the City could assert in its own behalf. SECTION 7. VACATION OF PUBLIC WAYS. The City shall give Company at least two weeks prior written notice of a proposed vacation of a Public Way. Except where required for a City improvement project, the vacation of any Public Way, after the installation of Electric Facilities, shall not operate to deprive Company of its rights to operate and maintain such Electric Facilities, until the reasonable cost of relocating the same and the loss and expense resulting from such relocation are fITst paid to Company. In no case, however, shall City be liable to Company for failure to specifically preserve a right-of-way under Minnesota Statutes, Section 160.29. SECTION 8. CHANGE IN FORM OF GOVERNMENT. Any change in the form of government of the City shall not affect the validity of this Ordinance. Any governmental unit succeeding the City shall, without the consent of Company, succeed to all of the rights and obligations of the City provided in this Ordinance. SECTION 9. FRANCmSE FEE. 9.1 Fee Schedule. During the term. of the franchise hereby granted, and in lieu of any permit or other fees being itnposed on Company, the City may itnpose on Company a franchise fee by collecting the amounts indicated in a Fee Schedule set forth in a separate ordinance from each customer in the designated Company Customer Class. The parties have agreed that the franchise fee collected by the Company and paid to the City in accordance with this Section 9 shall not exceed the following amounts. Class Fee Per Premise Per Month Residential Sm C & 1- Non-Dem Sm C & I - Demand Large C & I Public Street Ltg Muni Pumping -N/D MuniPumping - Dem $1.60 $2.25 $25.00 $75.00 $6.00 $0.50 $10.00 6 18-40 \ 9.2 Separate Ordinance. The franchise fee shall be imposed by a separate ordinance duly adopted by the City Council, which ordinance shall not be adopted until at least 60 days after written notice enclosing such proposed ordinance has been served upon Company by certified mail. The fee shall not become effective until the beginning of a Company billing month at least 90 days after written notice enclosing such adopted ordinance has been served upon Company by certified mail, and Company has received any necessary approvals from the Commission. Section 2.5 shall constitute the sole remedy for solving disputes between Company and the City in regard to the interpretation of, or enforcement of, the separate ordinance. No action by the City to implement a separate ordinance will commence until this Ordinance is effective. A separate ordinance which imposes a lesser franchise fee on the residential class of customers than the maximum amount set forth in Section 9.1 above shall not be effective against Company unless the fee imposed on each other customer classification is reduced proportionately in the same or greater amount per class as the reduction represented by the lesser fee on the residential class. 9.3 Terms Defined For the purpose of this Section 9, the following definitions apply: 9.3.1 "Customer Class" shall refer to the classes listed on the Fee Schedule and as defined or determined in Company's electric tariffs on file with the Commission. 9.3.2 "Fee Schedule" refers to the schedule in Section 9.1 setting forth the various customer classes from which a franchise fee would be collected if a separate ordinance were implemented immediately after the effective date of this franchise agreement. The Fee Schedule in the separate ordinance may include new Customer Class added by Company to its electric tariffs after the effective date of this franchise agreement. 9.4 Collection of the Fee. The franchise fee shall be payable quarterly and shall be based on the amount collected by Company during complete billing months during the period for which payment is to be made by imposing a surcharge equal to the designated franchise fee for the applicable customer classification in all customer billings for electric service in each class. The payment shall be due the last business day of the month following the period for which the payment is made. The franchise fee may be changed by ordinance from time to time; however, each change shall meet the same notice requirements and not occur more often than annually and no change shall require a collection from any customer for electric service in excess of the amounts specifically permitted by this Section 9. The time and manner of collecting the franchise fee is subject to the approval of the Commission. No franchise fee shall be payable by Company if Company is legally unable to first collect an amount equal to the franchise fee from its customers in each applicable class of customers by imposing a surcharge in Company's applicable rates for electric service. Company may pay the City the fee based upon the surcharge billed subject to subsequent reductions to account for uncollectibles, refunds and correction of erroneous billings. Company agrees to make its records available for inspection by the City at reasonable times provided that the City and its designated representative agree in writing not to disclose any information which would indicate the amount paid by any identifiable customer or customers or any other information regarding identified customers. In addition, the Company agrees to provide at the time of each payment a statement summarizing how the franchise fee payment was determined, including information showing any adjustments to the total surcharge billed in the period for which the payment is being made to account for any uncollectibles, refunds or error corrections. 7 1 8-41 9.5 Equivalent Fee Requirement. The separate ordinance imposing the fee shall not be effective against Company unless it lawfully imposes and the City monthly or more often collects a fee or tax of the same or greater equivalent amount on the receipts from sales of energy within the City by any other energy supplier, provided that, as to such a supplier, the City has the authority to require a franchise fee or to impose a tax. The "same or greater equivalent amount" shall be measured, if practicable, by comparing amounts collected as a franchise fee from each similar customer, or by comparing, as to similar customers the percentage of the annual bill represented by the amount collected for franchise fee purposes. The franchise fee or tax shall be applicable to energy sales for any energy use related to heating, cooling or lighting, or to run machinery and appliances, but shall not apply to energy sales for the purpose of providing fuel for vehicles. If the Company specifically consents in writing to a franchise or separate ordinance collecting or failing to collect a fee from another energy supplier in contravention of this Section 9.5, the foregoing conditions will be waived to the extent of such written consent. SECTION 10. PROVISIONS OF ORDINANCE. 10.1 Severability. Every section, provision, or part of this Ordinance is declared separate from every other section, provision, or part and if any section, provision, or part shall be held invalid, it shall not affect any other section, provision, or part. Where a provision of any other City ordinance conflicts with the provisions of this Ordinance, the provisions of this Ordinance shall prevail. 10.2 Limitation on Applicability. This Ordinance constitutes a franchise agreement between the City and Company as the only parties!, and no provision of this franchise shall in any way inure to the benefit of any third person (including the public at large) so as to constitute any such person as a third party beneficiary of the agreement or of anyone or more of the terms hereof, or otherwise give rise to any cause of action in any person not a party hereto. SECTION 11. AMENDMENT PROCEDURE. Either party to this franchise agreement may at any time propose that the agreement be amended to address a subject of concern and the other party will consider whether it agrees that the amendment is mutually appropriate. If an amendment is agreed upon, this Ordinance may be amended at any time by the City passing a subsequent ordinance declaring the provisions of the amendment, which amendatory ordinance shall become effective upon the filing of Company's written consent thereto with the City Clerk within 90 days after the date of final passage by the City of the amendatory ordinance. SECTION 12. PREVIOUS FRANCmSES SUPERSEDED. This franchise supersedes any previous electric franchise granted to Company or its predecessor. Passed and approved: ,2010. 8 18-42 Attest: City Clerk Date Published: Mayor 9 18-43 CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA SUMMARY OF ORDINANCE NOS. ORDINANCES RENEWING GAS AND ELECTRIC FRANCHISES WITH DAKOTA ELECTRIC ASSOCIATION AND NORTHERN STATES POWER D/B/A XCEL ENERGY, AND ESTABLISIDNG FRANCmSE FEE SCHEDULES FOR THE PROVISION OF GAS AND ELECTRIC SERVICES BY DAKOTA ELECTRIC ASSOCIATION, MINNESOTA ENERGY RESOURCES CORPORATION, AND NORTHERN STATES POWER D/B/A XCEL ENERGY NOTICE IS HEREBY GIVEN that, on , Ordinance Nos. were adopted by the City Council of the City of Farmington, Minnesota. NOTICE IS FURTHER GIVEN that, because of the lengthy nature of Ordinance Nos. , the following summary of the ordinances has been prepared for publication, and that copies of the ordinances are available for inspection by the public at the City Clerk's office. NOTICE IS FURTHER GIVEN that the City has renewed franchises with Dakota Electric Association ("DEA") and Northern States Power d/b/a Xcel Energy ("Xcel"). The terms of the two renewal franchises are essentially the same and grant each company a 20 year franchise to transmit and furnish gas or electric energy for public and private use within or through the City. The renewal franchises provide for the orderly location and relocation of facilities within public rights of way and public grounds, relocation and restoration of facilities and rights of way, and abandonment and subsequent removal of abandoned facilities in accordance with Minnesota Rule 7819.3300. The renewal franchises require the provision of field location and mapping information by the companies. Other provisions provide for street openings for repair or other purposes with prior permit of the City or without prior permit in exigent circumstances, tree trimming, company indemnification of the City, and notice procedures for the City's vacation of public ways. Each of the franchises is accompanied by a franchise fee ordinance, and another, separate ordinance extends the fee to Minnesota Energy Resources Corporation, whose franchise to operate in the City is still current. 153818vl 1 18-45 The franchise fee ordinances impose fees related to gas and electric services as follows: DEA fee schedule: Class Fee Per Premise Per Month Residential Irrigation Small General- Non-Dem General-,. Demand Public Street Lighting C&I Interruptible $1.60 $2.00 $2.25 $25.00 $6.00 $25.00 MERe fee schedule: Residential Commercial Firm Commercial Interruptible $1.60 /Month/Customer $15.00 /Month/Customer $25.00 /Month/Customer Xcel fee schedule: Class Fee Per Premise Per Month Residential Small General- Non-Demand Small C&I Demand Large C&I Public Street Lighting Municipal Pumping Non-Demand Municipal Pumping $1.60 $2.25 $25.00 $75.00 $6.00 $0.50 $10.00 APPROVED for publication by the City Council of the City of Farmington this 20th day of September, 2010. CITY OF FARMINGTON By: Todd Larson, Mayor 153818vl 2 18-46 By: Approved as to form this _ day of Peter J. Herlofsky, Jr., City Administrator ,2010. By: Joel J. Jamnik, City Attorney ,2010. Published in the Farmington Independent the _ day of 153818vl 3 18-47 //b City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn.us TO: Mayor, Councilmembers FROM: Peter Herlofsky, City Administrator Teresa Walters, Finance Director SUBJECT: Approve Final Budget and Levy DATE: December 6, 2010 INTRODUCTION Enclosed are the resolutions to set the 2011 tax levy and adopt the 2011 governmental budget. At the November 22nd budget workshop, Council was provided with a detailed budget showing each of the line items that make up the 2011 budget. The proposed preliminary levy increase adopted on September 7,2010 was 3.73%. The Budget process has been ongoing and particularly intense during the past six months, as the Council has had major challenges to face. Some of those challenges include: Increases in bond payments A deficit in the bond fund due to a lack of development at Vermillion River Crossing. A reduction in our Market Value Homestead Credit (MVHC) due to State shortfalls in revenue Fuel costs and interest rates continue to fluctuate. Building Permit Revenue is uncertain, however, there are signs that the economy and the housing market will improve. On November 22,2010, City Council was provided with a recommendation to address the City's 2011 Budget deficit. The City Administrator presented a list of proposed recommended reductions totaling $425,000. A placeholder in the amount of $98,594 was shown as a reduction to the budget until Council decided what cuts they wanted to see. Council rejected the $98,594 in reductions, with one exception, $35,000 reduction in the Police Sergeants pay increase. The following position eliminations were included in the proposed $425,000 budget reductions on November 22,2010. They were not part of the $98,594 1. Layoff - Community Development: Administrative Assistant 2. Retirement - Finance: Accountant 3. Attrition - Maintenance position 19-1 OPTIONS: We have prepared two options for Council to consider. OPTION A: The fIrst option shows the reduction of one Management Staff member. The reduction was calculated as of March 1, 2011. The reduction takes into consideration a Severance and Vacation payout in the amount of$19,228. In addition to this, the unemployment benefIt for 2011 is $30,420. The voluntary reduction in hours for both the HRlPayroll and the Maintenance staff positions have been left in the budget. Without leaving this in the budget, we would not have at least $400,000 in total reductions. In addition to this, we plan to reorganize the maintenance staff. These two proposals (voluntary reductions and reorganization) will save more than the attrition reduction previously proposed. The Information below shows the proposed reductions, bringing the total reductions to $450,839. Option A provides for a contingency of$50,839. The $450,839 in reductions includes $335,633 in salaries. Starting reduction amount $425,000 Items added back to the budget: Place Holder amount -98,594 Attrition Reduction (Vacancy created by fIlling positions resulting from a supervisor retirement in Municipal services.) -69759 Balance of reductions after adding items back 256,647 Add Layoff - Management Position 58,398 PayrolllHR - Voluntary 32 hours/wk 14,412 Reorganize Maintenance Staff 86,382 Police Sgt Pay increase 35.000 Total Budget Reductions $450,839 Levy cuts (400.000) Contingency $50,839 OTHER CONSIDERATIONS: With Option A, Staff is proposing keeping the $50,839 as a contingency. We have taken the prudent approach of conservative budgeting; however, no contingencies are in place for unexpected changes in the fmancial and economic environment in 2011. The budget is extremely tight, there are many unknowns (interest and permit revenue, property tax receipts). If the contingency is not needed, it could be used to increase the fund balance which is lower than the State Auditor's recommended 35-50%. Next year, this contingency could assist the council in funding new 2010 bond issues (Walnut Street and the Ice Arena) with principal payments due in 2012. 19-2 OPTION B: Option B shows no layoffs. Instead, it provides for an additional 32 hour per week voluntary reduction; the Administrative Service Director's salary is reduced by 20%. The Information below shows the proposed reductions, bringing the total reductions to $415,972. Option B provides for a contingency of$15,972. The $415,972 in reductions includes $300,766 in salaries. Starting reduction amount $425,000 Items added back to the budget: Place Holder amount -98,594 Attrition Reduction (Vacancy created by filling positions resulting from a supervisor retirement in Municipal services.) -69.759 Balance of reductions after adding items back 256,647 Admin Service Director - Voluntary 23,531 32 hrs/wk PayrollJHR - Voluntary 32 hours/wk 14,412 Reorganize Maintenance Staff 86,382 Police Sgt Pay increase 35.000 Total Budget Reductions $415,972 Levy cuts (400.000) Contingency $15,972 OTHER CONSIDERATIONS: With Option A, Staff is also proposing keeping the $15,972 as a contingency. 19-3 BUDGET PROCESS Our Budget process has consisted of the following mandated activities: ~ Certify a date for adoption of the fmal 2011 tax levy and budget to the County Auditor by September 15,2010. ~ Certify the proposed property tax levy for payable 2010 to the County Auditor by September 15, 2010. ~ Certify the final property tax levy for payable 2010 to the County Auditor by December 28,2010. ~ Comply with the restrictions that the final tax levy must not exceed the proposed levy amount. The City of Fannington has set a continuation date as Monday, December 13th, in the event that the budget is not approved the evening of December 6, 2010. The information sent to the County in September provided Dakota County with information that is passed on to the public in the Property Specific Notices that were mailed to citizens during the month of November. The following information summarizes the details of City Budget and the annual proposed tax levy: ~ The City of Fannington is proposing a total tax levy of $8,590,982, which consists of individual levy amounts for the following purposes: 2010 Levy 2011 Levy Difference General Fund $ 5,694,448 $ 5,440,396 $ (254,052) MVC - State Levy 350,000 415,051 65,051 Fire Relief Levy 195,584 131,175 (64,409) General Levy Total $ 6,240,032 $ 5,986,622 $ (253,410) 19-4 )> The City also levies for debt service to provide payment of debt. This levy is as follows: 2010 Levy 2011 Levy Difference Levies Allowed Above Legislative Limits G.O. Improvement - 2003A $ 249,918 $ 249,918 $ G.O. Improvement - 2005B 200,000 200,000 G.O. Improvement - 2006A 7,200 509,572 432,372 Equipment Certificate - 2005D 167,900 162,600 (5,300) Wastewater Treatment - 1995 60,000 60,000 Public Project Revenue - 2001A 350,000 (350,000) Public Project Revenue - 2010A 390,000 390,000 G.O. Capital Improvement - 2005C 144,120 144,120 G.O. Capital Improvement - 2007A 733,700 733,700 Public Safety Revenue Bonds -2007 (DCC) 59,450 59,450 Street Reconstruction - 2010C 75,000 75,000 Ice Arena Equipment Certificate - 2010D 20,000 20,000 Total Levies Above the General Levy $ 2,042,288 $ 2,604,360 $ 562,072 Grand Total Levies $ 8,282,320 $ 8,590,982 $ 308,662 Recommendation Staff recommends approval of the 2011 Budget with a levy increase of3.73%. This increase results in an unbalanced budget with revenues exceeding expenditures. This provides for a contingency in the amount of $50,839 for Option A or $15,972 for Option B. If Council requests additional information to be discussed at this meeting, please contact staff and we will include these items in the discussion. 19-5 Attachments: . Administrative Services Director Responsibilities . 2011 Severance and Unemployment Costs per Department Director . Park and Recreation Department · Organizational Chart 2010 · Organizational Chart 2011 . Option 'A': 2011 Budget Reductions . Option 'B': 2011 Budget Reductions . Resolution Adopting the Tax Levy for the Year 2011 Collectible . Resolution Adopting the 2011 Budget C:\Documents and Settings\cmuller\Local Settings\Temporary Internet Files\OLK1 F\Attachments 2011 Dec rec.doc 19-1 Administrative Services Director Responsibilities: Elections -Attend County and State meetings and trainings. -Secure polling locations -Recruit, train and schedule 90+ election judges to polling locations. -Train City staff on elections. -Coordinate and manage all Absentee voting procedures. -Ensure that all required notices are posted and published per the state statutes. -Secure all equipment and supplies needed for each polling location. Including proofing and securing ballots. -Test all voting equipment for accuracy. -Maintain voter confidentiality. -Administer off site absentee voting for healthcare facilities. -Responsible for processing candidates affidavit offiling. _ 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 staff 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 oithe administrator including but not limited 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 email 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 (SaCA). -Proof, 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 behalf 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. 19-9 -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 A V equipment in Council Chambers and train staff. -Monitor A V performance and take care of any maintenance items. -Assist Cable Coordinator in video productions such as City Hall video, SOCA, off site tapings and other video projects. -Perform performance evaluation of Cable Coordinator. Administration and Staff Management -Supervise, schedule, train, coordinate work and resolve conflicts for administrative and communications staff. -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 recruif!nent/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 Hall 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. 19-10 ,- -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 Merchan t 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 staff 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. -CBEF- City Representative -Apple Valley, Farmington, Rosemount Cable Commission (AFRCC) Committees (Internal) -Safety Committee -Development Committee -Customer Service Team (Chairperson) 19-11 '" " .SO ~ " ~ u C III ... 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I 19-17 2011 Budget Reductions OPTION A I Budget Account Reduction Number Item Impact (Increase) Administration I Finance Legislative 1005.6460 Dues & Subscriptions Metro Cities Dues 6,340 Administration 1010.6210 Office Supplies Reduce Office Supplies 10,000 1010.6220 Eauipment Supplies Reduce Eauipment Supplies 500 1010.6403 Legal Use Attorney less 4,750 1010.6450 Outside Printing No outside forms 1,000 1010.6460 Dues & Subscriptions Newspapers 500 1010.6485 Mileage Reimbursement Reduce travel 100 1010.6405 Equipment Repair service Reduce use of copiers 5,000 1010.6555 Eauipment Rental Reduce copies/ no color 5,000 Historical Preservation 1006.6401 Professional Services Reduce Consultant ActiVitY 400 Communications 1014.6401 Professional Services Misc Publications 1,000 1014.6445 Postage Reduce postage 2,500 City Hall 1015.6240 Building supplies New building, less to fix 1,500 1015.6421 Municipal services No charges to the City 2,500 1015.6422 Electric Turn off lights/lower air condition 1,250 1015.6423 Gas Winter - lower thermostat 1,250 1015.6505 Eauipment repair service New building, less to fix 1,140 Finance 1021.6412 Cell phone 120 1021.6401 Professional services (7,900) 1021.6470 Trainino (100) Community Development 1035.6401 Professional Services Less help 2,300 1035.6460 Dues & Subscriptions Limited support 385 1035.6470 Training Limited training 300 Total Administration/Finance $ 39,835 Human Resources 1011.6401 Professional Services Mandated emplovee training 3,300 1101.6401 Professional Services Labor attorney 1,500 1101.6401 Professional Services EAP 2,000 1011.6450 Outside printing 500 1011.6494 Advertising Limit employment advertising 4,000 TOTAL Human Resources $ 11,300 Information Technology 6112 Overtime No after hours support 4,493 6152 FICA 343 6270 Fuel No impact - not used 400 6210 Office Supplies 1,500 6401 Professional Services Security Training 750 6402 Data processing Limits help on server build & repair 4,800 6505 Eauipment Maintenance Cut Mtnce agreements on IT equip 2,950 Reductions allocated to other funds (6,459) nformatlon Technology $ 8,777 1 19-19 2011 Budget Reductions OPTION A I Budget I Account Reduction Dept Number Item Impact (Increase) Police Admin Wages SeNices/supDlies 1050.6401 Professional Services Animal Control 10,000 Police Patrol 1051.6250 Supplies Shooting supplies 2,000 1051.6290 Uniforms New Officer uniform setup 4,000 1051.6220 Equipment Tasers, handguns, etc. 4,000 1051.6470 Training Officer training 7,000 Total Police $ 27,000 Fire Dept 1060.6158 Fire Pension Aid Added into the budget to cover grant (73,000) 1060.6120 Part-time. Reduce active members from 52-50 8,170 1060.6152 FICA 625 1060.6470 Training 5,695 1060.6290 Turnout gear 8,500 1060.6290 Uniforms 3,000 Total Fire Dept $ (47,010) Engineering SeNices 1070.6105 FT Salaries (10,000) If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1070.6210 Office Supplies year. 350 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1070.6230 Vehicle Supplies year. 250 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1070.6272 Fuel year. 1,750 Items that cannot be completed by 1070.6401 Professional SeNices staff will wait. 30,000 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1070.6403 Legal year. 2,500 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1070.6450 Outside Printina year. 100 19-20 2 2011 Budget Reductions OPTION A I I Budget Account Reduction Number Item Impact (Increase) If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following Engineering (Continued) 1070.6455 Mileage Reimbursement year. 200 Total Engineering Services $ 25,150 Items that cannot be completed by Planning & Zoning 1030.6401 Professional Services staff will wait. 17,200 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1030.6403 Leaal year. 3,000 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1030.6455 Legal Publication year. 600 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1030.6455 Mileage Reimbursement year. 250 Total Planning & Zoning $ 21,050 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following Natural Resources 1076.6220 Equipment SUDplies year. 500 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1076.6230 Vehicle Supplies year. 250 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1076.6250 other Supplies year. 1.100 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever Natural Res (continued) needs to be done until the following 1076.6272 Fuel year. 1.500 3 19-21 2011 Budget Reductions OPTION A Budget Account Reduction Number Item Impact (Increase) If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1076.6401 Professional Services year. 3,150 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1076.645Q Outside Printing year. 100 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1076.6460 Dues and Subscriptions year. 150 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1076.6470 Training and Subsistence year. 300 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1076.6485 Mileage Reimbursement year. 150 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1076.6505 Equipment Repair services year. 500 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1076.6510 Vehicle Maintenance year. 500 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1076.6555 EQuipment Rental year. 500 Total Natural Resources $ 8,700 PT helps with blacktop. paint hydrants, and other misc. We have pal Services - Street not filled this in the last 3 years due Maintenance 1072.6120 Part-time EmDloyee to budget constraints. 14,993 1072.6152 FICA 1,147 4 19-23 2011 Budget Reductions OPTION A Budget I Account Reduction Dept Number Item Impact (Increase) 1072.6154 PERA 1,087 1072.6158 WORK COMP 1,104 1072.6230 Vehicle Supplies Emergency Vehicle supplies 2,000 1072.6254 Signs and Striping Liinit signs and Striping 1,000 Total Municipal Services $ 21,331 Paint for foul lines, aglime used for ball fields, grass seed, protective netting. wood fiber for protective playground surface, fertilizer and Park Maintenance 1090.6250 Other Supplies herbicide, decrease quality of turf. 12,491 ADDED BACK 1090.6250 Other Supplies ADDED BACK TO BUDGET (6,638) Less mowing. repairs. warming house not open for season, slower response time in removing graffiti. ADDED BACK 1090.6120 Part-time Salaries maintenance of right of way reduced 13,638 1090.6120 Part-time Salaries ADDED BACK TO BUDGET (6,000' Terminate skidster lease - reduce snow removal of rinks, sidewalks. 1090.6555 Equipment Rental trails, and parking lots 5,100 Total Park Maintenance $ 18,591 Eliminate puppet wagon program, tots & tikes program. This will also Recreation Program 1095.6120 Part-time reduce revenue. 1,367 ADDED BACK 1095.6120 Part-time puppet wagon - ADDED BACK (850) Program revenue reduction (tots 1000.4662 REVENUE &tikes) (1,325' 1095.6401 Professional Services Reduce programs and revenues. 1095.6570 Program expense Use existing equipment next year 3,552 ADDED BACK 1095.6570 Program expense ADDED BACK TO BUDGET (1.700) Total Recreation Program $ 1,044 19-24 5 2011 Budget Reductions OPTION A Budget Account Reduction ] Number Item ImDact (Increase) Reduce color paper for flyers & brochures. Reduce other office Recreation Admin 1096.6210 Office Supplies supplies. 500 1096.6230 Vehicle Supplies Reduce scrapers, air fresheners, etc 200 1096.6250 Other Supplies Reduce misc supplies & plaques 200 1093.6272 Fuels reduce visits to City parks 1,000 No clothing purchases to identify 1096.6290 Uniforms staff 100 ADDED BACK 1096.6412 Cell phones 1,680 1096.6412 Cell phones ADDED BACK TO BUDGET (1,680' 1096.6422 Electric No Iightina of the P&R info sign 250 ADDED BACK 1096.6450 Outside printing Reduce program brochure from 3-2 6,026 1096.6450 Outside printing ADDED BACK TO BUDGET (6,026) 1096.6460 Dues & Subscriptions No NRPA membership and MRPA 788 reduce training - results in lost 1096.6470 Training certifications 1,000 1096.6485 Mileage reimbursement reduce visits to City parks 600 No advertisement In Farmington Independent community guide and 1096.6492 Advertising community expo handout 500 Total Recreation Admin $ 5,138 Rambling River Center 2410.6250 Office Supplies No office supplies 450 will have to rely on donations of Kleenex, toilet paper, and hand A o BACK 2410.6240 Building Supplies soap 600 2410.6240 Building Supplies ADDED BACK TO BUDGET (600) 2410-6421 Municipal Services Reduce water consumotion & trash 1,000 Reduce electricity by making computer lab available 3 days per Electricity week, heat building less, cool 2410.6422 building less 1,000 2410.6423 Natural Gas Heat building less 200 Reduce River newsletter from 12x 2410.6445 Postage per year to 6x per year 500 2410.6460 Dues & Subscriptions Eliminate one newspaoer subscriptio 150 2410.6515 Building maintenance Defer maintenance of building 1,000 Total Rambllna River Center tReductlon of GF transfer) $ 4,300 Revenue Increase (decrease) 1001.4305 Building Permits CDA, $ 20,000 Interest Revenue reduction $ (50,000) 6 19-25 2011 Budget Reductions OPTION A Budget Account Reduction Dept Number Item Impact (Increase) SALARIES Administration MANAGEMENT STAFF Increase duties for other staff LAYOFF IN MARCH 1010.6110 Administrative Svc Director Salary members 84,488 1010.6152 FICA 6,463 1010.6154 PERA 6,125 1010.6158 Work Comp 578 1010.6158 Health Insurance 10,392 Sick leave (13,127) Vacation Payout (6,101) Unemployment (30,420) HR Increase duties for other staff VOLUNTARY32WEEKS 1010.6110 Payroll staff members 12,469 1010.6152 FICA 954 1010.6154 PERA 904 1010.6158 Work Comp 85 Community Development Increase duties for other staff , STAFF LAYOFF 1021.6110 Full-time members 54,080 1021.6152 FICA 4,137 1021.6154 PERA 3,921 1021.6158 Work Comp 370 1021.6158 Health Insurance 10,392 Park Maintenance REORGANIZATION OF THE MAINTENANCE STAFF 1090.6110 Full-time 76,575 1090.6120 Part-time (18,418) 1090.6152 FICA 1,913 1090.6154 PERA 1,813 1090.6158 Work Comp 782 1090.6158 Health Insurance 22,140 1090.6412 OT 1,577 Finance Longer time to complete month end processing, Council reports may be delayed, Less help during audit and RETIREMENT - year-end, Finance Director will need ACCOUNTANT POSITION 1021.6110 Full-time to put in more hours. 53,568 1021.6152 FICA 4,098 1021.6154 PERA 3,884 1021.6158 Work Comp 366 1021.6158 Health Insurance 8,625 1021.6412 OT (2,000) Police 1.75 % Increase each 2011-2013 POLlCE SGT PAY INCREASE 1050.6110 Full-time instead of 3.5 in 2011 35,000 Total Salaries 335,633 TOTAL COUNCIL REQUESTED REDUCTIONS $ 450,839 19-26 7 2011 Budget Reductions OPTION B Budget Account Reduction D Number Item Impact lIncreasel Administration / Finance Legislative 1005.6460 Dues & Subscriptions Metro Cities Dues 6,340 Administration 1010.6210 Office Supplies Reduce Office Supplies 10,000 1010.6220 ECluipment Supplies Reduce Equipment Supplies 500 1010.6403 Legal Use Attornev less 4,750 1010.6450 Outside Printing No outside forms 1,000 1010.6460 Dues & Subscriptions Newspapers 500 1010.6485 Mileage Reimbursement Reduce travel 100 1010.6405 ECluipment Repair service Reduce use of copiers 5,000 1010.6555 Equipment Rental Reduce copies/ no color 5,000 Historical Preservation 1006.6401 Professional Services Reduce Consultant Activity 400 Communications 1014.6401 Professional Services Misc Publications 1,000 1014.6445 Postage Reduce postage 2,500 City Hall 1015.6240 BUilding supplies New building, less to fix 1,500 1015.6421 Municipal services No charges to the City 2,500 - 1015.6422 Electric Turn off lights/lower air condition 1,250 - 1015.6423 Gas Winter - lower thermostat 1,250 1015.6505 ECluipment repair service New building, less to fix 1,~40 Finance 1021.6412 Cell phone 120 1021.6401 Professional services (7,900) 1021.6470 Training (100) :;ommunity Develooment 1035.6401 Professional Services Less help 2,300 1035.6460 Dues & Subscriptions Limited support 385 1035.6470 Training Limited training 300 fotal AdmlnlstratlonlFlnance $ 39,836 ;uman Resources 1011.6401 Professional Services Mandated employee training 3,300 1101.6401 Professional Services Labor attorney 1,500 1101.6401 Professional Services EAP 2,000 1011.6450 Outside printing 500 1011.6494 Advertising Limit employment advertising 4,000 rOTAL Human Resources $ 11,300 nformatlon Technology 6112 Overtime No after hours support 4,493 6152 FICA 343 6270 Fuel No impact - not used 400 6210 Office Supplies 1,500 6401 Professional Services Security Training 750 6402 Data processing Limits help on server build & repair 4,800 - Cut Mtnce agreements on IT eCluip 6505 Equipment Maintenance 2,950 - (6,459) Reductions allocated to other funds fotallnformatlon Technology $ 8,777 1 1 9-21 2011 Budget Reductions OPTION B Account BUdget 1 Reduction DeDt Number Item Impact lIncrease) Police Admin Wages Services/supplies 1050.6401 Professional Services Animal Control 10,000 Police Patrol 1051.6250 Supplies Shooting supplies 2,000 1051.6290 Uniforms New Officer uniform setup 4,000 1051.6220 Eauipment Tasers, handguns, etc. 4,000 1051.6470 Training Officer training 7,000 Total Pollee $ 27,000 =ire Dept 1060.6158 Fire Pension Aid Added into the budget to cover grant (73,000) 1060.6120 Part-time Reduce active members from 52-50 8,170 1060.6152 FICA 625 1060.6470 Training 5,695 1060.6290 Turnout gear 8,500 1060.6290 Uniforms 3,000 rota I Fire Dept $ (47,010) ::ngineering Services 1070.6105 FT Salaries (10,000) If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1070.6210 Office Supplies year. 350 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1070.6230 Vehicle Supplies year. 250 If bUdget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1070.6272 Fuel vear. 1,750 Items that cannot be completed by 1070.6401 Professional Services staff will wait. 30,000 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1070.6403 Legal year. 2,500. If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1070.6450 Outside Printing Ivear. 100 I 19-28 2 2011 Budget Reductions OPTION B Budget Account Reduction De Number Item Impact (Increase) # If budget is reached and there is a need for this item a decision will , have to be made as to whether to go over budget or wait on whatever needs to be done until the following :ngineering (Continued) 1070.6455 Mileage Reimbursement year. 200 rota I Engineering Services $ 25,150 Items that cannot be completed by :)lannIng & Zoning 1030.6401 Professional Services staff will wait. 17,200 If budget is reached and there is a need for this item a decision will have to be made as to whether to - go over budget or wait on whatever needs to be done until the following 1030.6403 Legal year. 3,000 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1030.6455 LeQal Publication year. 600 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1030.6455 Mileage Reimbursement year. 250 rotal Planning & Zoning $ 21,050 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following ~atural Resources 1076.6220 Equipment Supplies vear. 500 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1076.6230 Vehicle Supplies year. 250 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1076.6250 Other SUDDlies year. 1,100 3 19-29 2011 Budget Reductions OPTION B I BUdget I Account Reduction DeDt Number Item Impact (Increase It If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following Natural Res (continued) 1076.6272 Fuel year. 1,500 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1076.6401 Professional Services year. 3,150 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the follOwing 1076.6450 Outside Printing year. 100 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the follOwing 1076.6460 Dues and Subscriotions year. 150 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1076.6470 Training and Subsistence year. 300 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1076.6485 Mileage Reimbursement year. 150 If budget is reached and there Is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following , 1076.6505 Equipment Repair services year. 500 If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the follOwing 1076.6510 Vehicle Maintenance Ivear. 500 19-30 4 2011 Budget Reductions OPTION B Budget Account Reduction D Number Item ImDact (Increase) If budget is reached and there is a need for this item a decision will have to be made as to whether to go over budget or wait on whatever needs to be done until the following 1076.6555 Equipment Rental year. 500 Total Natural Resources $ 8,700 PT helps with blacktop, paint hydrants, and other misc. We have Municipal Services - Street not filled this in the last 3 years due Maintenance 1072.6120 Part-time Employee to budget constraints. 14.993 1072.6152 FICA 1,147 1072.6154 PERA 1.087 1072.6158 WORK COMP 1.104 1072.6230 Vehicle Supplies Emergency Vehicle supolies 2,000 1072.6254 Signs and Striping Limit signs and Striping 1,000 Total Municipal Services $. 21,331 Paint for foul lines. aglime used for ball fields, grass seed. protective netting, wood fiber for protective playground surface. fertilizer and ;)a . alntenance 1090.6250 Other Supplies herbicide. decrease quality of turf. 12,491 ~DucD BACK 1090.6250 Other Supplies ADDED BACK TO BUDGET (6.638) Less mowing, repairs. warming house not open for season, slower response time in removing graffiti. ~DDED BACK 1090.6120 Part-time Salaries maintenance of right of way reduced 13.638 1090.6120 Part-time Salaries ADDED BACK TO BUDGET (6,000) Terminate skidster lease - reduce snow removal of rinks. sidewalks. 1090.6555 Equipment Rental trails, and parking lots 5.100 rota I Park Maintenance $ 18,691 Eliminate puppet wagon program, tots & tikes program. This will also ~ecreation Program 1095.6120 Part-time reduce revenue. 1,367 mDED BACK 1095.6120 Part-time puppet wagon - ADDED BACK {850' Program revenue reduction (tots 1000.4662 REVENUE &tikes) (1,325) 1095.6401 Professional Services Reduce programs and revenues. 1095.6570 Program expense Use existing equipment next year 3.552 mDED BACK 1095.6570 Program expense ADDED BACK TO BUDGET (1,700) .otal Recreation Program $ 1,044 5 1 9-31 2011 Budget Reductions OPTION B Budget I Account Reduction DeDt Number Item Imoact (Increase) Reduce color paper for flyers & brochures. Reduce other office Recreation Admin 1096.6210 Office Supplies supplies. 500 1096.6230 Vehicle Supplies Reduce scrapers, air fresheners, etc 200 1096.6250 Other Supplies Reduce misc supplies & plaques 200 1093.6272 Fuels reduce visits to City parks 1,000 No clothing purchases to identify 1096.6290 Uniforms staff 100 I\DDED BACK 1096.6412 Cell phones 1,680 1096.6412 Cell phones ADDED BACK TO BUDGET (1,680) 1096.6422 Electric . No lighting of the P&R info sign 250 !\DDED BACK 1096.6450 Outside printing Reduce program brochure from 3-2 6,026 1096.6450 Outside printing ADDED BACK TO BUDGET (6,026) 1096.6460 Dues & Subscriptions No NRPA membership and MRPA 788 reduce training - results in lost 1096.6470 Training certifications 1,000 1096.6485 Mileage reimbursement reduce visits to City parks 600 No advertisement in Farmington Independent community guide and 1096.6492 Advertising community expo handout 500 rotal Recreation Admin $ 6,138 ~amblinl1 River Center 2410.6250 Office Supplies No office supplies 450 will have to rely on donations of Kleenex, toilet paper, and hand ~DDED BACK 2410.6240 Buildinl1 Supplies soap 600 2410.6240 Building Supplies ADDED BACK TO BUDGET (600) 2410-6421 Municipal Services Reduce water consumption & trash 1,000 Reduce electricity by making computer lab available 3 days per week, heat building less, cool 2410.6422 Electricity building less 1,000 2410.6423 Natural Gas Heat building less 200 Reduce River newsletter from 12x 2410.6445 Postage per year to 6x per year 500 2410.6460 Dues & Subscriptions Eliminate one newspaper subscriptio 150 2410.6515 Building maintenance Defer maintenance of building 1,000 'otal Rambling River Center Reduction of GF transfer} $ 4,300 tevenue Increase jecrease) 1001.4305 Building Permits CDA, $ 20,000 1terest Revenue reduction $ (50,000) 19-32 6 2011 Budget Reductions OPTION B Budget Account Reduction D Number Item Impact (Increase) SALARIES A.dmlnlstratlon Increase duties for other staff 1010.6110 Administrative Svc Director Salarv members 20,359 VOLUNTARY 32 HOURS IW~ 1010.6152 FICA 1,557 1010.6154 PERA 1,476 1010.6158 Work Camp 139 HR Increase duties for other staff VOLUNTARY 32 HOURSIWK 1010.6110 Pavroll staff members 12,469 1010.6152 FICA 954 1010.6154 PERA 904 1010.6158 Work Camp 85 Communltv Develooment Increase duties for other staff STAFF LAYOFF 1021.6110 Full-time members 54,080 1021.6152 FICA 4,137 1021.6154 PERA 3,921 1021.6158 Work Camp 370 1021.6158 Health Insurance 10,392 P Intenance R ANIZATION OF THE VlAINTENANCE STAFF 1090.6110 Full-time 76,575 1090.6120 Part-time (18,418) 1090.6152 FICA 1,913 1090.6154 PERA 1,813 1090.6158 Work Camp 782 1090.6158 Health Insurance 22,140 1090.6412 OT 1,577 Finance Longer time to complete month end processing, Council reports may be delayed, Less help during audit and ~ETIREMENT - year-end, Finance Director will need l\CCOUNTANT POSITION 1021.6110 Full-time to put In more hours. 53,568 1021.6152 FICA 4,098 1021.6154 PERA 3,884 1021.6158 Work Camp 366 1021.6158 Health Insurance 8,625 1021.6412 OT (2,000) Pollee 1.75 % increase each 2011-2013 :JOLlCE SGT PAY INCREASE 1050.6110 Full-time instead of 3.5 in 2011 35,000 Total Salaries 300,766 - - TOTAL COUNCIL REQUESTED REDUCTIONS $ 416,972 7 19-33 RESOLUTION NO. R67-10 ADOPTING THE TAX LEVY FOR THE YEAR 2011 COLLECTIBLE 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 6th day of December 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: WHEREAS, the City of Farmington is annually required by State Law to approve a resolution setting forth an annual tax levy to the Dakota County Auditor; and, WHEREAS, Minnesota Statutes currently in force require certification of the tax levy to the Dakota County Auditor on or before December 28, 2010; and, WHEREAS, summary details of the proposed budgets are contained in the budget submitted to the City Council. NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council of the City of Farmington, that the following sums of money be levied in 2010, collectible in 2011, upon the taxable property in said City of Farmington for the following purposes: General Fund Special Levy (recover MVHC) Debt Service (see attached schedule) Fire Levy Gross Levy Less: Fiscal Disparities Net Levy $6,953,372 415,051 2,604,360 131,175 10,103,958 (1,537,976) $8,565,982 This resolution adopted by recorded vote of the Farmington City Council in open session on the 6'" day of December, 2010. ~ ~~ Mayor SEAL Attested to the ~-I1t day of December 2010. 2011 BUDGET Summary of Debt Service Levy to be Attached and Become part of Resolution R67-10 Wastewater Treatment bonds of 1995 Public Project Revenue Bonds of2010A Improvement Bonds of 2003A Improvement Bonds of 2005B Capital Improvement Plan Bonds 2005C Public Safety Revenue Bonds 2007 Capital Improvement Plan Bonds 2007 A GO Improvement Bonds of 2006A Equipment Certificate 2005D Street Reconstruction bonds of 20 1 OC Ice Arena Equipment Certificate of 20 1 OD Total $ 60,000 390,000 249,918 200,000 144,120 59,450 733,700 500,572 162,600 75,000 20,000 $2,604,360 RESOLUTION NO. R68-10 ADOPTING THE 2011 BUDGET 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 6th day of December, 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: WHEREAS, the City of Farmington Ordinance Chapter 7, Section 1-7-3 requires that an annual budget be submitted to the City Council which accurately reflects the financial needs of the City organization; and, WHEREAS, Minnesota Statutes require approval of a resolution setting forth an annual budget and tax levy to the Dakota County Auditor on or before December 28,2010; and, NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council of the City of Farmington, that the 2011 operating budget shall be adopted. FundlDepartment General Fund General Property Taxes Licenses & permits Fines & Forfeitures Interest Intergovernmental Charges for services Miscellaneous Transfers from other funds Administration Human Resources Finance Police Fire Engineering Municipal Services Parks & recreation Transfers to other funds Total General Fund Revenues Expenditures Enterprise Debt/Capital Improvements 7,084,547 431,455 70,000 200,000 405,590 578,678 69,000 350,035 9,189,305 932,196 238,159 429,658 3,868,994 714,085 896,866 802,352 886,481 374,673 9,143,464 Enterprise Debt/Capital Fund/Department Revenues Expenditures Improvements Special Revenue Funds Arena 309,700 305,147 Park Improvement 23,400 26,000 Police Forfeiture 2,000 4,000 Economic Development 9,000 40,500 Tax Increment 90,000 85,264 Recreation Operating Fund 300,650 297,284 Debt Service All Debt Service Funds 4,449,606 4,079,630 Capital Project Funds Capital Acquisition/Communications 302,600 218,025 Street Construction & Maintenance 1,220,000 1,745,000 Private Capital Project Fund 50,000 50,000 Municipal Building Fund 0 20,000 Storm Sewer Trunk Construction 76,500 75,000 Sanitary Sewer Trunk Fund 90,000 15,000 Permanent Improvement Revolving 9,000 108,171 Enterprise Funds Street Lights 151,610 156,323 Water 1,542,500 1,196,941 723,989 Stormwater 454,000 517,715 340,000 Solid Waste Services 1,876,903 1,831,369 123,230 Sewer 1,635,000 1,686,574 343,517 Liquor Stores 1,023,028 1,022,378 40,000 Grand Total 22,804,802 22,623,785 1,570,736 This resolution adopted by recorded vote of the Farmington City Council in open session on the 6th day of December, 2010. W Attested to ~ day of December 2010. SEAL