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Home My WebLink About03.07.11 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 promising future. FARMINGTON CITY COUNCIL Todd Larson, Mayor Jason Bartholomay Christy Fogarty Terry Donnelly Julie May AGENDA REGULAR CITY COUNCIL MEETING March 7, 2011 7:00 P.M. CITY COUNCIL CHAMBERS 1. CALL TO ORDER 7:00 P.M. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVEAGENDA 5. ANNOUNCEMENTS/COMMENDATIONS a) Introduce New Employee - Parks and Recreation b) Introduce Promoted Employee - Municipal Services 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 Mr. Tim Thompson - Engineering b) Response to Mr. Rick Reichert - Engineering 7. CONSENT AGENDA a) Approve Council Minutes (2/22/11 Regular) b) Adopt Resolution - Approve Gambling Event Permit - Engineering c) Approve Joint Powers Agreement with Department of Public Safety - Police Department d) Adopt Resolution - Accept Park Bench Donation - Parks and Recreation e) Adopt Resolution - Accept Donation Rambling River Center Construction Project - Parks and Recreation f) Approve Pictometry Agreement - Human Resources g) Draft 2010 Financial Report - Finance h) January 2011 Financial Report - Finance i) Approve Bills Action Taken Information Received Informati{Jn Received Approved RI6-11 R17-11 Approved Injbrmation Received Iriformation Received Approved 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) NPDES Phase II Annual Report - Natural Resources 9. AWARDOFCONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS 11. UNFINISHED BUSINESS a) Approve Funding Source - Seal Coating - Engineering 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. Table of Contents Agenda. . . . , . . . . , , , , , Response to Mr. Tim Thompson Tim Thompson 030711 seal coat cost1. . . . . Response to Mr. Rick Reichert Rick Reichert 030711 . Approve Council Minutes (2/22/11 Regular) Minutes 2/22/11 . , , , . . , . . . . Adopt Resolution - Approve Gambling Event Permit Memo. . . . . . . . . . . . . . . . . . . . Resolution. . . . . . . . . . . . . . , . . . Approve Joint Powers Agreement with Department of Public Safety .2 .4 .5 .6 ,7 . 13 . 14 Intox JPA state of mn . . . . . . . Agreement. , . . . . . . . . . . . Adopt Resolution Accept Bench Donation memo. . . . . . . . . . . . . . . resolution . . . . . . . . . . . . . Adopt Resolution Accept Donation Rambling River Center Construction Project memo, , , . . , . . , . . . . . , . . . . . . . . . resolution . . . . . . . . . . . . . . . . . . . . . . Approve Joint Powers Cost Share Agreement for Pictometry Software 2011-12 Pictometry Agrmt. . . Agreement. . . . . . . . . . . Draft 2010 Financial Report - Finance December Memo . . . . . . . Draft 2010 Report. . . . . . . January 2011 Financial Report - Finance January Memo. . . . 2011 monthly report. Approve Bills List of Bills. , . . . . NPDES Phase II Annual Report NPDES Ph II Annual Report. Approve Funding Source - Seal Coating Seal Coat Funding 030711 Franchise Ordinances. . . . . . .15 . 16 .20 .21 .22 .23 .24 .25 .30 .33 .39 ,42 .48 .74 .75 .78 1 00- City of Farmington 430 Third Street l;armington, Minnesota 651.280.6800. Fax 651.280.6899 www:ci. tanniT1!.>tun_n11l_LL~ TO: Mayor, Councilmembers, City Administrator FROM: Kevin Schorzman, P .E., City Engineer SUBJECT: Response to Tim Thompson DATE: March 7,2011 INTRODUCTIONIDISCUSSION At the February 22, 2011 City Council meeting, Mr. Tim Thompson requested a report on seal coating costs for the last 10 years. The information is attached ACTION REOUESTED For your information. Respectfully Submitted, Kevin Schorzman, P .E., City Engineer 4 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 $ 184415.40 $ 145,920,00 $ 14,943.46 $ 23551,94 2008 $ 134,093.98 $ 81,680,64 $ 23,511,54 $ 28,901,80 2'009 $ 283,883.44 $ 236,.792.16 $ 29,583,04 $ 17,508,24 2010 $ 216302.56 $ 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 5 &6 City of Farmington 430 Third Street farmington, Minnesota 651.280.6800. Fax 651.280.6899 www.ci.tann;T1gt4111.mll.Lt~ TO: Mayor, Councilmembers, City Administrator FROM: Kevin Schorzman, P.E., City Engineer SUBJECT: Response to Rick Reichert DATE: March 7,2011 INTRODUCTIONIDISCUSSION At the February 22, 2011 City Council meeting, Mr. Rick Reichert asked several questions related to what types of properties would be charged franchise fees if that option is approved by Council. All properties that have an active gas meter, electric meter, or both will be charged the corresponding franchise fee regardless of their classification or use. ACTION REOUESTED For your information. Respectfully Submitted, Kevin Schorzman, P .E., City Engineer 6 ~ COUNCIL MINUTES REGULAR February 22,2011 1. CALL TO ORDER The meeting was called to order by Mayor Larson at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE Boy Scout Troop 118 led the audience and Council in the Pledge of Allegiance. 3. ROLL CALL Members Present: Members Absent: Also Present: Audience: Larson, Bartholomay, Donnelly, Fogarty, May None Peter Herlofsky, City Administrator; Brenda Wendlandt, Human Resources Director; Tony Wippler, Assistant City Planner; Cynthia Muller, Executive Assistant Jeff Czyson, Jim Manthey, Hunter Ehlers, Rick Reichert, Beve Preece, Jim Merle, Austin Long, Tyler Wench, Kim Erickson, Chris Erickson 4. APPROVE AGENDA MOTION by Fogarty, second by Bartholomay to approve the Agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS a) 4th quarter 2010 ALF Ambulance Report Mr. JeffCzyson gave highlights of the 4th quarter 2010 ALF Ambulance Report. 6. CITIZEN COMMENTS Mr. Tim Thompson, 816 7th Street, had some questions from the recent workshop on franchise fees and seal coat funding. He noted at the workshop Council gave a solid number of $400,000 needed in franchise fees. On Wednesday, the paper stated $500,000. He asked what happened to make a difference of$100,OOO. Mayor Larson was not aware of the newspaper article. Mr. Thompson asked for a report on seal coating costs for the last ten years per project. Mayor Larson stated staff will provide a report for the last seven years. Mr. Thompson stated regarding the fees to utility companies, at the workshop Council discussed voting on this item at the March 7, Council meeting. Mr. Thompson asked if the residents would be able to see the agreement stating the utility companies would not be charging the City for passing through the franchise fees before the March 7, Council meeting. Councilmember Fogarty stated it will be in the packet on the website. Staff was told to bring the agreement back to a meeting when it is ready. Mr. Thompson asked how residents will know when this is coming to Council for a vote. Councilmember Fogarty suggested he check the website for the Council packets on Thursdays. 7 Council Minutes (Regular) February 22,2011 Page 2 Mr. Rick Reichert, 709 4th Street, had comments on franchise fees. They are a tax in disguise. It is another way of picking the pockets of the residents without the voice of the people. Unlike a tax, our City should not be fmding ways to circumvent citizens by fmding a loophole that turns a tax into a franchise fee. City managers and Councils like fees because it makes them look good by not raising taxes. You have to raise taxes to make things happen. It also promotes unaccountability in budgets; it robs Peter to pay Paul because we have not been able to keep accurate records in other accounts. Starting another budget stream lets the budget rise. It has gotten to the point that our own Finance Director has a hard time fmding answers at public meetings as to where the money is going. In these days of tight economic issues, rising insurance costs, sky rocketing fuel costs, and added street light fees just one year ago, he had a few questions. Houses that are vacant and not hooked up to meters, or an owner that puts in an LP tank in his own yard, what about him? Does he pay zero? What about lots with no houses, do they pay zero? What about the acreage that is not subdivided, who picks up the tab? What about farms in the community that are on LP tanks and do not have a natural gas meters? Who pays for them? What is wrong with the current system of levy and assessment that has been working for many years? Let's adopt a system that was working. Ifwe wait one year, which we have already agreed to, look to Lakeville. There was public opposition to fees there and they tabled it and have not brought the issue back. No system is perfect, but roundabout ways (fees) to get a new system to work and take the voice ofthe citizens and muffle it away should not be tolerated. Many of the ''what ifs" of the fee based system are concerning, but seal coating taxes and energy bills should not come to his mailbox in the same envelope. Mr. Jeff Albee, 4705 189th Street W, introduced himself as the newly elected President of the Farmington Fire Relief Association. At the last Council meeting, there were some questions and concerns regarding the pension. He was open to meeting with the Council to discuss their concerns. He gave Council a packet regarding the Relief Association. Councilmembers will attend the April 19, Relief Association meeting. 7. CONSENT AGENDA MOTION by Fogarty, second by Bartholomay to approve the Consent Agenda as follows: a) Approved Council Minutes (217/11 Regular)(2/14/11 Special)(2/14/11 Workshop) b) Approved Temporary On-Sale Liquor License - Administration c) Adopted ORDINANCE 011-631 Amending 2011 Fee Schedule - Administration d) Approved Appointment Parks and Recreation Commission - Administration e) Approved School and Conference - Fire Department t) Approved School and Conference - Fire Department g) Approved School and Conference - Parks and Recreation h) Approved School and Conference - Natural Resources i) Adopted RESOLUTION RI3-11 - Approving Rebanding ofWaming Siren Notification System - Police Department j) Approved Bills APIF, MOTION CARRIED. 8 Council Minutes (Regular) February 22,2011 Page 3 8. PUBLIC HEARINGS a) Adopt Resolution - Vacating Portion of Dunbury Avenue - Riverbend Subdivision - Planning Mattamy Homes has petitioned for a vacation ofa portion of Dunbury Avenue in the Riverbend subdivision. Council approved the preliminary plat in January. A condition of that approval was the extreme northern 150 ft. of Dun bury Avenue be vacated. Due to the replatting of this area, portions of lots would extend into this right-of-way. The right-of-way was platted in 2005 in anticipation of an east- west county road connection. That alignment has been shifted north into Lakeville. Therefore, this stub of Dun bury Avenue is no longer required. There is also a wetland in this area. MOTION by Bartholomay, second by Donnelly to close the public hearing. APIF, MOTION CARRIED. Councilmember May asked how this affects traffic flow issues when the plats were fIrst developed. Staff explained there will be no change to what was originally approved. The extension was contingent on development north into Lakeville. There are also accesses at Upper 182nd Street and Upper 183rd Street. MOTION by Fogarty, second by Donnelly to adopt RESOLUTION RI4-11 vacating the portion of Dun bury Avenue right-of-way located in the Riverbend Subdivision. APIF, MOTION CARRIED. 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) Approve Policy Manual- Human Resources Over the past year staff has worked on updating all policies and procedures, mainly those with changes according to federal and state statute. A policy manual was compiled for Council. Human Resources Director Wendlandt outlined the main changes. Councilmember May had many questions, but wanted to see it in a form showing the changes that have been made. Staff stated the main change is the paid time offpolicy and the global positioning location policy. Human Resources Director Wendlandt stated we did not have one policy manual. Individual policies were located on the Citywide drive. When she combined them into one document, she did some editing. She can provide the copy received from the City Attorney with changes. Mayor Larson stated he had the same question. They have nothing to compare it to. Staff stated some was wording, some were signifIcant changes. The Family 9 Council Minutes (Regular) February 22, 2011 Page 4 Medical Leave Act changed and that has to do with military leave. There were changes for those holding commercial drivers' licenses including plow operators. There were changes to drug testing and chain of custody, and the medical review officer. There are changes regarding personnel files and employees cannot be charged to make copies of their personnel file. The global positioning and monitoring is a new policy. The Nextel phones have the ability to locate where employees are to save time in dispatching them to calls. Paid time off is a way to address Council's concerns with regarding to severance packages and leave time. This combines sick and vacation for any non-bargaining new hires. This will also be offered to current employees in some form of conversion. This is pending Council approval of the policy. Mayor Larson asked what the benefit would be to the employee to change to PTO. Staff stated currently we have a policy that outlines appropriate uses of sick leave. Paid time offwould be pooled time to a maximum of520 hours. Currently employees could receive 740 hours severance from sick leave. Employees can accrue to 1,040 hours sick leave. Ifemployees have been here five years they receive 25%; ten years they receive 50% of sick time for severance. Employees can accrue up to 320 hours over 40 years of employment for vacation. Councilmember May stated this is a big document to review and approve. She noted the effective date is January 1, 2011. Staff noted that date can change to be effective after Council approval. Councilmember May asked how long the 1,040 hours has been in effect. Staff recalled it changed ten years ago and before that it was 960 hours. Councilmember May asked if that number can be reduced. Staff would have to check with the City Attorney as there are some legal parameters. Councilmember May felt that number was high compared to other cities. Staff stated for those on sick and vacation it is comparable, but a number of other cities have moved to paid time off. Councilmember May noted in addition to the sick accrual and vacation accrua~ there is also comp time accrual up to 40 hours. These numbers can quickly add up and it is concerning. Staff stated comp time is allowed in the public sector rather than paying out overtime. Councilmember May noted it says the collective bargaining agreement would take precedence and asked if Council could receive a copy of all the bargaining agreements. Councilmember Fogarty agreed with Councilmember May's comments. There are not a lot of employees who are not in collective bargaining. So this applies to very few people. Human Resources Director Wendlandt noted the sick and vacation are outlined in the bargaining agreement as well as benefits. A number of the policies are not in the bargaining agreements and those do apply to every City employee. Councilmember Fogarty liked the PTO. She was concerned with the high number of accruals and would like to see them lowered. No longer are employees retiring and having nine months severance pay. She would like to see that at least cut in half. She would like to see this for employees not only hired after January 1, 2011, but also for the people who are at the max see the amount stay down as time is used. She wants to move away from this as this is a lot of time to accrue. It could have been accrued in their first few years and at the end, 10 Council Minutes (Regular) February 22, 2011 Page 5 it is paid out at a higher rate. She had a lot of questions and was not prepared to approve this. Human Resources Director Wendlandt stated the sick and vacation policies mirror what is in the collective bargaining agreements as well as holidays. The City has tried to keep the wages and benefIts equal between those who have bargaining agreements and those who don't. When Apple Valley went to paid time off 15 years ago, they still have people who are on sick and vacation because they had to transition it in. Councilmember Bartholomay realized the comp time is great for police departments. He asked if there was a comparison between comp time and overtime. Staff stated patrol officers are allowed to carry over comp time at the end ofthe year up to 40 hours, however, when they use it; it is paid out at the rate they earned it. That is part of the bargaining agreement. In the other bargaining agreements ifwe did not have a payout in December, they were paid out at their current rate of pay. They are earning comp time rather than paying out over time so the only way to control the cost is to control the amount of comp time accrued. Over the last couple years there has been a cap. Councilmember Bartholomay felt we were in the same range as other cities with 40 hours comp time. Councilmember Donnelly asked regarding comp time especially with the street workers, it would seem letting them accrue more would be cheaper for the City because you are not paying them, but then you have a staffing level problem. Regarding all the accruals, the only way to change that is through collective bargaining. He asked how many employees are not covered by collective bargaining agreements. Staff stated there are 15-20 employees. Councilmember Donnelly clarified this document only applies to those people. Councilmember May noted there may be some things in this document that are not part of the collective bargaining agreement. Councilmember Donnelly stated this policy manual would then take precedent. City Administrator Herlofsky stated some of those are classified as management rights and not found in employment agreements. Those apply to all employees. Councilmember Donnelly asked ifwe want to reduce the amount of accrual for all employees how do we do that? Staff stated that would be done through negotiations. Councilmember Bartholomay would also like to see the changes that have been made, especially to the paid time off. He did like the way the manual was set up and the defmition list. MOTION by Fogarty, second by Bartholomay to table this item for further clarification. APIF, MOTION CARRIED. 13. COUNCIL ROUNDTABLE a) Council Retreat Date Council set March 19, 2011, for a Council only retreat. Mayor Larson asked Councilmembers to send him three items they would like to discuss. Councilmember Fogarty stated she would also like to discuss the strategic plan from two years ago. If there is other support information needed, Mayor Larson will obtain it from staff. 11 Council Minutes (Regular) February 22, 2011 Page 6 Councilmember Donnelly: Attended the girls section hockey game in Owatonna and there was tremendous support in attendance. He wished the boys luck in Rochester. Councilmember Fogarty: Thanked the plow drivers for doing a great job. She thanked the Fire Department for digging out fIre hydrants. Now that we have a fresh layer of snow, she asked residents to dig them out. Councilmember Bartholomay: Encouraged residents to also dig out their mailboxes in addition to fIre hydrants. Thursday is the Chamber Brew HaHa at Roundbank. Councilmember May: There was a ribbon cutting for Smiles for Life Dentistry on Pilot Knob Road. There is a Knights of Columbus spaghetti dinner Saturday followed by bingo at St. Michael's Church. Mayor Larson: He urged residents to find it in Farmington fIrst and support local businesses. Ifwe want more businesses we have to support the ones we have. At the last DCC meeting there was a discussion about who to call in a non-emergency. Residents should still call 911 and they will prioritize the call. Thursday there is a wine tasting at Blondie's. The outdoor ice rinks are closed for the season. 14. ADJOURN MOTION by Fogarty, second by Bartholomay to adjourn at 8:07 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 12 76 City of Farmington 430 Third Street larmington, Minnesota 651.280.6800. Fax 651.280.6899 w \...,w.ci.tannillgt4111.n11l.LL~ TO: Mayor, Councilmembers, City Administrator FROM: Kevin Schorzman, City Engineer SUBJECT: Gambling Event Permit - St. Michael's Church DATE: March 7, 2011 INTRODUCTIONIDISCUSSION St. Michael's Church is requesting a Gambling Event Permit for a raffle to be held at 22120 Denmark Ave. Per State Statute 349.166 and pertinent City Code, a Gambling Permit must be issued by the City for this type of event. An application has been reviewed and the appropriate fees received. BUDGET IMPACT Gambling permit fees are included in the revenue estimates of the 2011 budget. ACTION REOUESTED Approve the attached resolution granting a Gambling Event Permit to St. Michael's Church, 22120 Denmark Ave., on May 11, 2011, September 17,2011 and September 18,2011 Respectfully submitted, Kevin Schorzman, City Engineer 13 RESOLUTION NO. RI5-11 APPROVING A MINNESOT A LAWFUL GAMBLING EVENT PERMIT APPLICATION FOR ST. MICHAEL'S CHURCH 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 7th day of March 2011 at 7:00 p.m. Members Present: Larson, Bartholomay, Donnelly, Fogarty, May Members Absent: None Member Fogarty introduced and Member Bartholomay seconded the following: WHEREAS, pursuant to M.S. 349.166, the State of Minnesota Gambling Board may not issue or renew a Gambling Event Permit unless the City Council adopts a Resolution approving said permit; and, WHEREAS, 81. Michael's Church submitted an application for a Gambling Event Permit to be conducted at 22120 Denmark Ave., for Council consideration. NOW, THEREFORE, BE IT RESOLVED by the Farmington City Council that the Gambling Event Permit for St. Michael's Church at 22120 Denmark Ave., is hereby approved. This resolution adopted by recorded vote of the Farmington City Council in open session on the 7th day of March 2011. ~~~ Mayor Attested to the cg' -I h day of March 2011. ~11~~ /' Acting City Administrator SEAL 7<J City of Farmington 430 Third Street larmington, Minnesota 651.280.6800. Fax 651.280.6899 W\...'w.ci.tann;ngt4111. mll.LL~ TO: Mayor and Councilmembers City Administrator FROM: Brian Lindquist Police Chief SUBJECT: Minnesota Department of Public Safety Breath Tester Agreement DATE: March 7,2011 INTRODUCTION 1 DISCUSSION The Minnesota Department of Public Safety supplies all law enforcement agencies with evidentiary breath testing equipment. The State has entered into a new contract with a new supplier and will be replacing all existing machines. In order to continue the processing of impaired drivers, all Cities receiving new breath testers have been asked to renew their Joint Power Agreements with the State. BUDGET IMPACT No budget impact. ACTION REOUESTED Attached is a copy ofthe agreement. Respectfully submitted, ,7>,,,, ,/ /c.;;1- ~-i $t.~ /. d.~/'J--...." Brian Lindquist Chief of Police 15 MN DEPARTMENT OF PUBLIC SAFETY DATAMASTER DMT-G WITH FUEL CELL OPTION EVIDENTIAL BREATH TESTER INSTRUMENT AGREEMENT (DISTRIBUTION OF EQUIPMENT TO LAW ENFORCEMENT AGENCIES) Contract # BCAMDMT -0052 THIS JOINT POWERS AGREEMENT, by and between the State of Minnesota, acting through its Commissioner of Public Safety. Bureau of Criminal Apprehension. Forensic Science Laboratorv (hereinafter referred to as the STATE) and Farmington Police Department (hereinafter referred to as the GOVERNMENTAL UNIT) witness that: WHEREAS, the STATE has received an appropriation to purchase DataMaster DMT-G with Fuel Cell Option breath test instruments and is authorized to distribute Data Master DMT-G with Fuel Cell Option breath test Instruments to criminal justice agencies and/or city, county, or political subdivisions; and . WHEREAS, the GOVERNMENTAL UNIT represents that it Is a criminal justice agency, or is a city, county, or political subdivision authorized to accept equipmenVservices from the STATE for the purpose specified herein; and WHEREAS, the GOVERNMENTAL UNIT represents that It Is duly qualified and willing to perform and carry out the services and tasks described in this Agreement. NOW, THEREFORE, it Is agreed: I. STATE'S RESPONSIBILITIES, A. The STATE will provide GOVERNMENTAL UNIT with a DataMaster DMT-G with Fuel Cell Option breath test instrument ("instrument"), which includes a DataMaster DMT-G with Fuel Cell Option, initial dry gas cylinder, a keyboard, a keyboard carrel, a printer with a toner cartridge, and mouthpieces for use as specified under Clause II of this Agreement. The GOVERNMENTAL UNIT will use and have possession of the instrument; but the STATE shall retain legal ownership of the instrument. B. Any and all repairs shall be made by or at the direction of the STATE. If funding is available, the STATE will pay for the cost of maintenance and repair, or replacement due to normal wear and tear resulting from routine, proper use of the instrument. C.' The STATE will maintain all necessary state and federal inventory control records on these instruments. II, GOVERNMENTAL UNIT RESPONSIBILITIES. A. The GOVERNMENTAL UNIT will use the instrument specified above to assist in enforcing Minnesota laws and local ordinances relating to traffic and highway safety and for other law enforcement applications. B, The GOVERNMENTAL UNIT will keep and maintain the instrument provided by the STATE in proper operating condition, The GOVERNMENTAL UNIT will also be responsible for any and all costs of repairing or replacing the instrument that is lost or damaged due to misuse or abuse, C. The GOVERNMENTAL UNIT will provide and maintain all disposable and consumable components originally provided by the STATE, such as DataMaster DMT-G with Fuel Cell Option mouthpieces, dry gas cylinders, printer toner cartridges, and paper and will supply all other necessary disposable and consumable components not provided by the STATE at the 16 GOVERNMENTAL UNIT'S expense, D, The GOVERNMENTAL UNIT will make this instrument available for use by any breath test operator certified by the STATE, E, The GOVERNMENTAL UNIT will not permit the instrument to be operated or tampered with by individuals who are not trained in its operation and certified by the STATE as DataMaster DMT- G with Fuel Cell Option operators, F: The GOVERNMENTAL UNIT will make the instrument available to STATE'authorized personnel when required for Inventory or Inspection purposes. III. TERMS OF AGREEMENT This Agreement shall be effective on January 1, 2011 or upon the date that the final required signature is obtained by the STATE, pursuant to Minn. Stat. S 16C,05, Subdivision 2, whichever occurs later, and shall remain In eff~t until the instrument is no longer used and supported by the STATE or until terminated by either of the parties as provided in Clause IV below, whichever occurs first. At the end of this Agreement, the STATE will notify the GOVERNMENT UNIT if they are required to return the instrument to the STATE, IV. TERMINATION This Agreement may be terminated by either the STATE or GOVERNMENTAL UNIT at any time, with or without cause, upon ten (10) days written notice to the other party. The instrument must be returned to the STATE within 30 days of the termination date, and if the GOVERNMENTAL UNIT fails to return the instrument within this time period the GOVERNMENTAL UNIT agrees to pay the STATE the cost of replacing the instrument and payment will be made to the STATE within 30 days of receipt of Invoice, V. STATE'S AUTHORIZED REPRESENTATIVE The STATE'S authorized representative agent for the purposes of this Agreement is Frank C. Doleisl, or his designee, Department. of Public Safety, Bureau of Criminal Apprehension, Forensic Science Laboratory, 1430 Maryland Avenue East. St. Paul, MN 55106. Such representative will have final authority for acceptance of the GOVERNMENTAL UNIT'S services. VI. ASSIGNMENT GOVERNMENTAL UNIT shall neither assign nor transfer any rights or obligations under this Agreement without the prior written consent from the STATE. VII. LIABILITY GOVERNMENTAL UNIT shall indemnify, save and hold the STATE, Its agents and employees, . harmless from any claims or causes of action, including all attorneys' fees incurred by the STATE, arising from the performance of this Agreement by GOVERNMENTAL UNIT or GOVERNMENTAL UNIT'S agents or employees. This clause will not be construed to bar any legal remedies GOVERNMENTAL UNIT may have for the STATE's failure to fulfill its obligations pursuant to this Agreement. GOVERNMENTAL UNIT'S liability shall be governed by the prOVisions of the Municipal Tort Claims Act, Minnesota Statutes, Section 466.01-466,15 and other applicable law. VIII. STATE AUDIT Under Minn. Stat ~ 16C,Q5, subd 5, the GOVERNMENTAL UNIT'S books, records, documents and 17 accounting procedures and practices relevant to this Agreement are subject to examination by the STATE, and/or the State Auditor or Legislative Auditor, as appropriate, for a minimum of six years from the end of this Agreement. IX VENUE " Minnesota law, without regard to its choice-of-Iaw provisions,' governs this agreement. Venue for all legal proceedings out of this agreement. or its breach, must be in the appropriate state or federal court with competent jurisdiction in Ramsey County, Minnesota. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed intending to be bound thereby. ' APPROVED 2. GOVERNMENTAL UNIT 3, DEPARTMENT OF PUBLIC SAFETY Governmental Unit certifies that the appropriate person(s) have executed this Agreement on behalf of Governmental Unit as required by applicable articles. by-laws, resolutions, or ordinances. By: By: Title: Title: Date: Date By: Title: Date 1. State Encumbrance Verification 4, DEPARTMENT OF ADMINISTRATION No encumbrance required: By: By: Date: Date: I I L ! i i i i 18 7d City of Farmington 430 Third Street l;armington, Minnesota 651.280.6800. Fax 651.280.6899 www.ci.tann;T1gt4111.n11l.L1s TO: Mayor, Councilmembers and City Administrator FROM: Randy Distad, Parks and Recreation Director SUBJECT: Adopt Resolution Accepting Park Bench Donation DATE: March 7,2011 INTRODUCTION A recent donation was made for the purchase of a park bench. DISCUSSION A donation in the amount of $459 has been made for the purchase of a park bench. The donation was made by Linda Nutting in memory of her husband. The park bench will be installed along the North Creek Greenway Trail. Staffwill communicate the City's appreciation on behalf of the Council to Linda Nutting for her generous donation. ACTION REOUESTED Adopt the attached resolution accepting the donation of $459 from Linda Nutting for the purchase and installation of a new park bench. Respectfully Submitted, Randy Distad Parks and Recreation Director 20 RESOLUTION NO. RI6-11 ACCEPT DONATION FOR THE PURCHASE OF A NEW PARK BENCH 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 7th day of March, 2011 at 7:00 p.m. Members Present: Larson, Bartholomay, Donnelly, Fogarty, May Members Absent: None Member Fogarty introduced and Member Bartholomay seconded the following: WHEREAS, a donation of $459 was made by Linda Nutting for the purchase of a new park bench; and, WHEREAS, it is required by State Statute that such donations be formally accepted; and, WHEREAS, it is in the best interest of the City to accept such donations. NOW, THEREFORE, BE IT RESOLVED that the City of Farmington hereby accepts with gratitude the generous donation of $459 from Linda Nutting for the purchase of a new park bench. This resolution adopted by recorded vote of the Farmington City Council in open session on the 7th day of March, 2011. ~~~~ Mayor -16 Attested to the L day of March 20 II. SEAL 7e City of Farmington 430 Third Street larmington, Minnesota 651.280.6800. Fax 651.280.6899 W\';w.ci. tann;ngt4111.TIlll.L1S TO: Mayor, Councilmembers, and City Administrator FROM: Missie Kohlbeck, Senior Center Coordinator SUBJECT: Adopt Resolution Accepting Donation to the Rambling River Center DATE: March 7,2011 INTRODUCTION A recent donation was made to the Rambling River Center's Construction Project. DISCUSSION Paul Wagner recently donated $200 to the Rambling River Center Construction Project. This is the second time in the past month that Mr. Wagner has made a donation of $200 to the project. Staff will communicate the City's appreciation on behalf of the Council to Mr. Wagner. ACTION REOUESTED Approve the attached resolution accepting the donation of $200 from Paul Wagner to the Rambling River Center's Construction Project. Respectfully Submitted, Missie Kohlbeck Senior Center Coordinator 22 RESOLUTION No. R17-11 ACCEPT DONATION TO RAMBLING RIVER CENTER CONSTRUCTION PROJECT 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 7th day of March, 2011 at 7:00 p.m. Members Present: Larson, Bartholomay, Donnelly, Fogarty, May Members Absent: None Member Fogarty introduced and Member Bartholomay seconded the following: WHEREAS, a donation in the amount of $200 has been given to the Rambling River Center by Paul Wagner to be used towards the Rambling River Center's Construction Project; and, WHEREAS, it is in the best interest of the City and required by State Statute to accept such donations. NOW, THEREFORE, BE IT RESOLVED that the City of Farmington hereby accepts with gratitude the generous donation of $200 by Paul Wagner to the Rambling River Center's Construction Project. This resolution adopted by recorded vote of the Farmington City Council in open session on the 7th day of March, 2011. ~~~ Mayor .;6 Attested to the L day of March, 2011. ki;~~ / Acting City Administrator SEAL 7F City of" Farmington 430 ThiTcI SLreel Farmington, Minnesota Ml.280.MWO. "'ax 651.280.6899 www.cLfurmulglon.flln..us TO: Mayor, Councilmembers, and City Administrator FROM: Brenda Wendlandt, Human Resources Director SUBJECT: Approve Joint Powers Cost Share Agreement for Pictometry Software DATE: March 7,2011 INTRODUCTION The purpose of the memorandum is to provide information regarding the attached joint powers cost share agreement for the licensing and use of Pic tome try software. DISCUSSION Dakota County, along with various Dakota County Cities implemented a joint powers cost share agreement for the purchase and licensing of Pictometry software in 2005. The cities share the costs based on the number of parcels in each city as a percentage of the total number of parcels in all cities. Attached is the amended and restated 2011-2012 Joint Powers Cost Share Agreement. Pictometry is a patented information system that provides "visual intelligence" by combining aerial imaging with computer programming. This program allows the users to have easy access to actual imagery of every square foot of their area from as many as twelve different views in full color, high resolution, and digital format. The users of this system are economic development, public safety, public works, and parks and recreation staff members. BUDGET IMPACT The City's cost for this software is $1,560.00 per year and is provided for in the 2011 budget. ACTION REOUESTED Approve the joint powers cost share agreement for Pictometry International Corporation general license terms and conditions. Respectfully Submitted, Brenda Wendlandt, SPHR Human Resources Director cc: file 24 Dakota County Contract #13382 JOINT POWERS COST SHARE AGREEMENT FOR PICTOMETRY INTERNATIONAL CORPORATION GENERAL LICENSE TERMS AND CONDITIONS THIS AGREEMENT is made and entered into by and between the County of Dakota ("County"), a political subdivision of the State of Minnesota, and the Cities of Apple Valley, Burnsville, Eagan, Farmington, Hastings, Inver Grove Heights, Lakeville, Mendota Heights, Rosemount, South St Paul and West St. Paul ("Cities"), political subdivisions of the State of Minnesota, WHEREAS, the County and Pictometry International Corporation (Pictometry) executed a General License Terms and Conditions, which is attached and incorporated herein as Exhibit 1 (License Agreement), whereby the County Is allowed to install and use Pictometry's licensed images, geodata, software and documentation (Plctometry's Licensed Products); and WHEREAS, Pictometry's Licensed Products are dynamic visual imagery products that will provide threeMdimensional oblique images and 360 degree views of each property in Dakota County; and WHEREAS, use of Pictometry's Licensed Products will improve efficiency and quality within numerous County departments; and WHEREAS, the License Agreement allows cities, townships, public schools and the soli and conservation districts geographically located within the boundaries of Dakota County to install and use Pictometry's Licensed Products (Approved Subdivisions) under the License Agreement and subject to certain conditions; and WHEREAS, the Cities desire to become Approved Subdivisions that are authorized to install and use Pictometry's Licensed Products, in accordance with the terms of the License Agreement; and WHEREAS, the County and Cities have reached an agreement to share the costs of licensing, installing and using Pictometry's Licensed Products by their respective political subdivision; and WHEREAS, pursuant to Minn. Stat. 9471.59, two or more governmental units, by agreement entered into through action of their governing bodies, may jointly or cooperatively exercise any power common to the contracting parties or any similar powers, NOW, THEREFORE, in consideration of the mutual promises and benefits that all parties shall derive from this Agreement, the parties agree as follows: ARTICLE 1 PURPOSE The purpose of this Agreement is for the County and the Cities to share in the costs for licensing, installation and use of Plctometry's Licensed Product, in accordance with the terms of this Agreement and the License Agreement attached and incorporated herein as Exhibit 1 (License Agreement) and to designate the Cities as Approved Subdivisions for purposes of the License Agreement. ARTICLE 2 TERM The term of this Agreement shall be from the date of execution of this Agreement by all parties, and shall terminate on December 31,2012, unless earlier terminated by law or according to the provisions of this Agreement. ARTICLE 3 OBLIGATIONS OF THE COUNTY 3.1 Payment. In accordance with the License Agreement executed between the County and Pictometry, the County has entered into the License Agreement and has agreed to pay Pictometry $68,795,50 for the first year of the License Agreement and $67,644.00 for the second year of the License Agreement. 3.2 Approval as Authorized Subdivisions. Upon execution of this Agreement and payment made by each City to the County as provided in this Agreement, the City will be an Authorized Subdivision for purposes of the 25 " License Agreement. Nothing in this Agreement restricts the County from designating other political subdivisions located in Dakota County as Authorized Subdivisions for purposes of the License Agreement. 3.3 CoordinaOon. The County will work out the delivery and deployment details and coordinating those processes with appropriate staff of the Cities. For that purpose, the Cities each agree to identify a technical and administrative contact for their city related to this Agreement (Liaison) as specified below, ARTICLE 4 OBLIGATIONS OF THE CITIES 4.1 Payments by Cities. The Cities agree to pay the County a total of $26,352.00 in 2011 and a total of $26,352.00 in 2012, The License Agreement cost paid by each city is based on the number of parcels in each city as a percentage of the total number of parcels in all cities. The Cities agree to pay their respective cost share for each year of the License Agreement as shown in the chart below. The County will Invoice each City for its cost share and each City agrees to send its cost share amount, payable to the Dakota County Treasurer, within 30 days of receipt of the invoice to the County Liaison, Apple Valley Burnsville Eagan Farmington Hastings Inver Grove Heights Lakevllle Mendota Heights Rosemount South St. Paul West St. Paul Urban Totals: %of Cost I # Parcels Urban CltvNear 17,845 13% $ 3,423 19,701 14% $ 3,779 23,391 17% $ 4,487 8135 6% $ 1,560 8,280 6% $ 1,588 12,138 9% $ 2,328 19,823 14% $ 3,802 5,040 4% $ 967 8,017 6% $. 1,538 8,244 6% $ 1,581 6,769 5% $ 1,298 137,383 100% $ 26,352 4.2 Responsibilities of Cities as Authorized Subdivisions. Upon payment of their respective cost for the License Agreement, each City is licensing Pictometry's Licensed Products and is authorized to use the Licensed Products in accordance with the terms of Exhibit 1 for the applicable calendar year, ARTICLE 5 CITIES ARE NOT SUBLICENSEES OF THE COUNTY Nothing in this Agreement creates an agency relationship between the County and the Cities with regard to the License Agreement (Exhibit 1). By signing this Agreement each City fully accepts the terms of the License Agreement on behalf of itself and its employees. The County does not have any obligation to the Cities with regard to licensing or the actual installation and/or use of Pictometry's Licensed Products by the City. ARTICLE 6 LIABLE FOR OWN ACTS Each party to this Agreement shall be liable for the acts of its officers, employees, volunteers or agents and the results thereof to the extent authorized by law and shall not be responsible for the acts of any other party, its officers, employees, volunteers or agents, The provisions of the Municipal Tort Claims Act, Minn, Stat. ch. 466 and other applicable laws govern liability of the County and the Cities, 2 26 ARTICLE 7 DEFAULT MAJEURE No party shall be liable to any other party for any loss or damage resulting from a delay or failure to perform due to unforeseeable acts or events outside the defaulting party's reasonable control, providing the defaulting party gives . notice to the other party as soon as possible, Acts and events may include acts of God, acts of terrorism, war, fire, flood, epidemic, acts of civil or military authority, and natural disasters. ARTICLE 8 TERMINATION In the event Pictometry's Licensed Products are no longer available to the County and Cities in accordance with the License Agreement, the County and Cities agree to work together to determine appropriate actions to take. In the event the County recovers payments from Pictometry, the money recovered will be disbursed proportional to the contributions made for Pictometry's Licensed Products under thi~ Agreement. ARTICLE 9 AUTHORIZED REPRESENTATIVES AND LIAISONS FOR THE PARTIES 9.1 Authorized Representatives. The named persons that have executed this Agreement on behalf of the County and each City are designated the authorized representatives of parties for purposes of this Agreement. These persons have authority to bind the party they represent and to consent to modifications and subcontracts, except that, as to the County and Cities, the authorized representative shall have only the authority specifically or generally granted by their respective goveming boards, 9.2 Liaisons. To assist the parties in the day-to-day performance of this Agreement and to develop service, ensure compliance and provide ongoing consultation, a liaison shall be designated by the County and the Cities. Notification required to be provided pursuant to this Agreement shall be provided to the named person and address listed below for the County, and shall be provided to the named persons and addresses listed on each City's signature page of this Agreement, unless otherwise stated in a modification of this Agreement. The parties shall keep each other continually informed, in writing, of any change in the designated liaison. The County's liaison is: County Liaison: Telephone: Email Address: Randy Knippel or successor, Office of GIS 952M891-7080 randy,knippel@co.dakota.mn.us ARTICLE 10 GENERAL PROVISIONS 10.1 Modifications. Any alterations, variations, modifications, or waivers of the provisions of this Agreement shall only be valid when they have been reduced to writing, signed by authorized representatives of the County and Cities. 10.2 Severability. The provisions of this Agreement shall be deemed severable. If any part of this Agreement is rendered void, Invalid, or unenforceable, such rendering shall not affect the validity and enforceability of the remainder of this Agreement unless the part or parts that are void, invalid or otherwise unenforceable shall substantially impair the value of the entire Agreement with respect tp either party. 10.3 Minnesota Law to Govern. This Agreement shall be governed by and construed in accordance with the substantive and procedural laws of the State of Minnesota, without giving effect to the principles of conflict of laws. All proceedings related to this Agreement shall be venued in the State of Minnesota, County of Dakota. 10.4 Merger. A. Final AQreement. This Agreement is the final expression of the agreement of the parties and the complete and exclusive statement of the terms agreed upon, and shall supersede all prior negotiations, understandings or agreements. There are no representations, warranties, or stipulations, either oral or written, not contained in this Agreement. 3 27 B. Exhibit. Exhibit 1 - License Agreement (including all schedules thereto) is attached and incorporated by reference, 10.5 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties have executed thIs Agreement on the dates Indicated below. COUNTY OF DAKOTA By Lynn Thompson, Director Physical Development Division Date of Signature APPROVED AS TO FORM: ;;.. 1l.9 ,;W II Date County Board Res. No. 11-_ 4 28 CITY OF FARMINGTON Name, Title, Address and Phone Number of City's Authorized Representative: Mayor Todd Larson City of Farmington 430 Third Street Farmington, MN 55024 651-280-6800 Name, Title, Address and Phone Number of City's Liaison: Brenda Wendlandt. Human Resources Director City of Farmington 430 Third Street Farmington, MN 55024 651-280-6806 CITY OF FARMINGTON I, the below signed, have authority to sign this Agreement on behalf of the City By: rprint name) Date: Attest: rprint name) Title: Date: 8 29 "7 j City of Farmington 430 Third Street Farmington, Minnesota 651,280.6800. Fax 651.280.6899 www.ci.tann;T1gton.n11l.L1.~ TO: Mayor, Councilmembers and City Administrator FROM: Teresa Walters, Finance Director SUBJECT: December Financial Report (Draft) DATE: March 7,2011 Enclosed is the financial report for the 2010 Calendar Year. The report shows revenues and expenditures for 100% of the year. This is a draft and has not been audited. We do not anticipate a significant change to the governmental funds. The enterprise funds will change significantly from the draft to the audited fmancials due to entries that have not been made. As a result of our quarterly billing cycle, some entries cannot be made until March 2011. Below is an explanation for variations from the budget. If you have any questions prior to the meeting, please e-mail meattwalters@cLfarmington.mn.us or call me at 651-280-6880. General Fund Revenues Property taxes Amount Received 100.64% Reason for Variance Although we did not receive 100% of our 2010 taxes, we did receive approximately $300,000 in delinquent taxes which are not considered revenue until received. Permits 149.32% The majority of this line item is building permit revenue. Bldg permit revenue is at 161% of the budget, or $137,562 over the budget. Overall General Fund Revenues are at 100.45% ofthe budget. Due to employee's careful management of the budget, expenditures are slightly lower than anticipated at 98.09% ofthe budget. This adds $73,137 to the Fund Balance for 2011. 30 SDecial Revenue Funds: The Special Revenue funds are established to account for specific revenue sources (grants) or to fmance a specific activity. Assistance may be needed from the general fund or another designated fund to operate. 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 HRA 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. When you add the EDA revenue and expenditures from October through December, the fund balance is ($262,543) as of December 31, 2010. The EDA plans to reduce this deficit through the sale of land. The EDA has no other revenue sources. Therefore, we may need to look at initiating an EDA levy in 2012. 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 ($33,075) as of December 31,2010. Rambling River Center Renovations: The RRC started the year with a negative fund balance ($176,423). The current fund balance is ($159,585). In 2011 when the renovation project is complete, the RRC operations will be combined with the renovations. Future donations have been pledged and will be received over the next four years. The $20,000 transfer- in is from the General fund to repay an inter-fund loan. 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$38,411. With the $75,000 transfer, the pool added $36,589 to their fund balance bringing it to $58,278 as of December 2010. Next year, the liquor store transfer has been reduced to $20,000. The fund balance will be used to offset any losses in pool operations. Ice Arena: The Ice Arena experienced a net loss of $77,918 for the year. This deficit adds to the negative fund balance at the end of2009, increasing the deficit to ($256,903) at the end of2010. Entemrise funds: The Enterprise funds are self supporting and do not need fmancial assistance from the General fund. This report does not include any entries for capital assets or depreciation. Also, revenues are billed at the end of January and February that are partially for 2010. This entry has also not been completed. Liquor: Liquor Operations Staff is continually making every effort to reduce costs through appropriate purchasing, staff schedules and other controllable expenses. The liquor stores transferred $66,300 to the General Fund and $75,000 to the pool in 2010. Without transfers the Liquor Operations would have seen an overall profit of $52, 134 for the year. 31 Overall the Sewer. Solid Waste. Storm Water. and Water enterprise revenues exceeded 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($47,157). This is a result of Electric bills and equipment repairs costing more than they have in the past. All revenues have not been recorded in this fund; therefore this will change before the financial reports are finalized. Grallh: The graph shows that overall 2010 YTD fund balance slightly above the 2009 fund balance at this time. This is a result of careful spending by staff: 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 of2009, and is anticipated to remain at this level for 2010. Respectfully submitted, Teresa Walters Finance Director 32 lit 12 1810 CD!::a ~lim .... Cl> a N'''':C\i <Ii><9. Nt:"i\1 ;18g ~18ii :!.ee G) 6' 10 li;18:i uig~ :!:oN ....Nt') ....1010 al. CD. "t ~lll~ I8l'Dlil "''<I'CO limli r--to-~ i e :> en I lD St::~ ~"t"'!. coaal ...co,.. "t"'!."l. .......... ~lUl C!."tl'f. g'<l'.... t')~~ .,: i'i"o;:' ~!::S ~a)f!f N,..CO :tee. 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Fax 651.280.6899 www,cj,tanningt4111.TIlU.Ll.'i TO: Mayor, Councilmembers and City Administrator FROM: Teresa Walters, Finance Director SUBJECT: January Financial Report DATE: March 7, 2011 Enclosed is the fmancial report for the month of January 2011. Below is an explanation for variations from the budget. If you have any questions prior to the meeting, please e-mail me at twalters@cLfarmington.mn.us or call me at 651-280-6880. REVENUES Licenses: This is consistent with previous years at this time. License revenue is higher due to receipt of the fIrst quarter payment. Permits: Building permit revenue which makes up the majority of this line item, is seasonal. Charges for services: This is seasonal and will increase during the summer months. Investment interest: Slightly lower than anticipated. EXPENDITURES Snow Plowing: Snow plowing is higher due to greater than anticipated snowfalls in January. General Fund Overall General Fund Revenues are at .44% of the budget. Tax revenue is not received until June/July. Expenditures are at 6.2% of the budget. Soecial Revenue Funds: The Special Revenue funds are established to account for specifIc revenue sources (grants) or to fmance a specifIc activity. A plan to eliminate defIcits will be discussed during the budget process. 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 of2010 was ($134,382). The current balance is ($126,931). The actual defIcit in the Ice Arena Fund was ($256,903). The current balance is ($225,862) as of the end of January. 39 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 HRA 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 (Revenues and expenditures), this brought the EDA fund balance to ($262,543) in December. January Revenues exceeded expenditures by $34 in this fund bringing the fund balance to a negative $262,509. Rambling River Center Operations (Senior Center): The Senior Center is funded by a $173,450 annual transfer from the General fund. The Senior Center started the year with a negative fund balance ($33,075). They have reduced this by $7,877 in January. This brings the fund balance to ($25,198) as ofJanuary 31,2011. Rambling River Center Renovations: The current fund balance is ($158,585). Future donations have been pledged and will be received over the next four years, to reduce the deficit. Swimming Pool: The Swimming pool will be funded this year by a $20,000 transfer from the Liquor Stores. Efforts by staff to reduce costs have led to an increase in the Fund balance at the end of2010. The fund balance as of the end of December was $58,278. This fund balance will be drawn down throughout the year due to a reduction in the transfer. Ice Arena: The Ice Arena revenues exceeded expenditures by $31,041 in January. Entemrise funds: The Enterprise funds are self supporting and do not need [mancial assistance from the General fund. Liquor: Consistent with previous January sales, expenditures exceeded revenues by $3,577 this month. More information will be provided to Council on the quarterly Liquor report. Overall the Solid Waste. and Water enterprise revenues are exceeding expenditures for the year. Transfers are to the General fund for Administrative costs. Sewer: The Sewer fund shows a slight reduction in the fund balance of $20,835 during the month of January. This is consistent with last year at this time. It is anticipated that future revenues will exceed expenditures in the months remaining in 2011. Storm Water: The Storm Water fund shows a slight reduction in the fund balance of$7,453 during the month of January. This is typical for this quarterly bill. Revenues will exceed expenditures during the other billing cycles. Street Light Utility: Street light utility revenues were received for the first time in March 2010. The fund currently shows a December 2010 negative balance in the amount of ($47, 157). This is a result of Electric bills and equipment repairs costing more than they have in the past. The deficit will be reduced with the January and February bills which are partially for December. 40 [This entry has not been made]. In December 2010, Council approved a rate increase which went into effect with the January billing. With this rate increase in effect, the deficit balance is anticipated to be eliminated by the end of the year. Gravh: The graph shows that overall 2011 YTD fund balance slightly higher than the 2010 fund balance at this time. Respectfully submitted, Teresa Walters Finance Director 41 ;f. 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Z u. ::J ~ ~ ~ :E ~ ~ t5 ~ u. u. d W W W ..J ..J ..J W W W ~ ~ g ~ :b cb ~ ~ ~ ~ to ~ ~ ~ ~ u:i ~ :t d ~ ~ f2 ~ 0) >t ~ o >t H H >t Z 0 H E-t o ::c: riI p:j U) E-t Z ..:r: U) p:j p:j Z t!l H ..:r: ..:r: 0 0 ~\J~ o I'- ~ (0. .., CD rn ~ l- t:: 8- .. ~ ~o... City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800. Fax 651.280.6899 W\.....w:ci.tann;ngt4111.TIln.L1s TO: Mayor, Councilmembers, City Administrator FROM: Jennifer Dullum, Natural Resource Specialist SUBJECT: NPDES Phase II Annual Report DATE: March 7, 2011 INTRODUCTION Staff will be presenting a summary of the City's NPDES Phase II Annual Report and Storm Water Pollution Prevention Program from 2010. DISCUSSION The City of Farmington, as a small municipal separate storm sewer system (MS4), is required to implement a Storm Water Pollution Prevention Program (SWPPP) as part of the National Pollutant Discharge Elimination System (NPDES) Phase II requirements. The permit requires an Annual Report, submittal to the Minnesota Pollution Control Agency (MPCA) and a presentation at a public hearing. Submittal of the report will follow the review and comment at the public hearing. The Annual Report must be submitted to the MPCA by June 30, 2011. BUDGET IMPACT The NPDES Phase II Program requirements are incorporated in the City's annual budget. ACTION REOUESTED For Council's information. Respectfully Submitted, Jennifer Dullum Natural Resource Specialist 74 lIe<- City of Farmington 430 Third Street Farm.ington, Minnesota 651.280.6800. Fax 651.280.6899 ww'w.ci.tann;l1gt4),(1.nl1l.LL~ TO: Mayor, Councilmembers, City Administrator FROM: Kevin Schorzman, P.E., City Engineer SUBJECT: Seal Coat Funding DATE: March 7,2011 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 Council meeting. This item has been discussed at three Council workshops and at the November 15th and December 6th Council meetings. After discussion at the December 6th meeting, this item was tabled to a future Council meeting. Council had a workshop on February 14, 2011, and requested that this item be brought back for decision by the Council. DISCUSSION Based on discussion at the February 14th Council workshop, the following options are being presented for discussion and action: · $400,000 collected through a $2.20 per month franchise fee on each electric and each gas account in the City. · $400,000 collected through an increase in the property tax levy. Council has asked for a comparison of the two methods of collection. The following is a side- by-side comparison of franchise fees and the increase in property tax levy for 5 different homes in Farmington: Franchise Property Tax Annual Annual 7-Year 7-Year Property Value Fees (monthly) Increase (monthly) Fee Tax Fee Tax $ 141,500.00 $ 4.40 $ 2.70 $ 52.80 $ 32.40 $ 369.60 $ 226.80 $ 180,000.00 $ 4.40 $ 3,59 $ 52.80 $ 43.08 $ 369.60 $ 301,56 $ 221,000.00 $ 4.40 $ 4.51 $ 52,80 $ 54.12 $ 369.60 $ 378.84 $ 265,900,00 $ 4.40 $ 5.54 $ 52,80 $ 66.48 $ 369.60 $ 465,36 $ 336,400,00 $ 4.40 $ 7.22 $ 52,80 $ 86,64 $ 369.60 $ 606.48 75 Seal Coat Funding March 7, 2011 Page 2 of3 When this item was fIrst discussed with Council two years ago, the Council at the time requested that staff come up with a plan that evens out the payments so that a person whose road is seal coated one year pays nearly the same as a person whose road is seal coated in a different year. Council also directed that they would like to continue to have tax-exempt properties participate in this program. Of the two options presented only the franchise fee option meets both of these initial goals. A question was raised at the last workshop regarding the ability of the companies to add a handling charge, administrative fee or other amount over and above the per meter charge specified in the franchise fee ordinance. That practice would not be allowed under the franchise and franchise fee ordinances which specify clearly that the amount to be collected by the company "is to be made by imposing a surcharge eaual to the designated franchise fee for the applicable customer classification in all customer billings for electric service in each class". For clarification, the surcharge is what the customer pays to the utility company, and the franchise fee is what the utility company pays to the City. There is not a surcharge on top ofthe franchise fee. While it is legally permissible for the company to seek an amendment to their state approved tariff (schedule of customer rates and fees) to offset administrative costs the company incurs as a part of federal, state and local tax and fee collections, that could only be done after a formal notice and hearing process at the Minnesota Public Utilities Commission and to this time staff does not know of any such effort by any utility company in the state in response to a state tax or local franchise fee. BUDGET IMPACT Franchise Fee: · Provides necessary funding · Consistent, long-tem funding source · Can be easily switched to a Street Utility if the Legislature gives cities that option in the future Levy: · Provides necessary funding · Must be revisited each year during budget process · Annual internal borrowing because of timing of tax payments from County · Maintenance items have historically been cut fIrst when budget cuts are made For the seal coat program to continue, it is important that a funding source be identified to provide consistent cash flow to adequately fund the project and to protect it from uncertainties related to other funding options. 76 Seal Coat Funding March 7, 2011 Page 3 of3 ACTION REOUESTED If the franchise fee option is chosen, approve the attached fee ordinances with Minnesota Energy Resources, Dakota Electric Association and Xcel Energy, modified to a flat fee of $2.20 per account. If the levy option is chosen, direct stafIto add $400,000 to the general fund levy once the remainder of the budget items have been agreed upon for 2012. Respectfully Submitted, Kevin Schorzman, P .E. City Engineer 77 Ordinance No. CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA ELECTRIC FRANCHISE FEE ORDINANCE AN ORDINANCE ESTABLISHING AN ELECTRIC SERVICE FRANCHISE FEE ON DAKOTA ELECTRIC ASSOCIATION, A MINNESOTA CORPORATION, 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, 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 tight-of-way permit fees or taxes which the City of Farmington may impose for the rights and privileges herein granted or for the ptivilege 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 meterMbased 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 fi.'anchise fee assessment for 1 78 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. Surchar2e. 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 79 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)) ofthe <<CityType)) of <<Name)), <<State)) on this _ day of <<MayorChr)) ATTEST: <<CityType)) Clerk 3 80 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 FURNISmNG 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 nonMenergy 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 82 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 FRANCHISE. 2.1 Grant of Franchise. City hereby grants Company, for a period of 20 years fi.-om 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 pelformance 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 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. 83 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 Ru1es 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, 84 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 Gl'Ounds 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 Electdc 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 Company~ 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 85 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 pI' 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 fmancially 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 fOl' 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 86 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. FRANCHISE 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 Ol'dinance has been served upon Company by 87 I 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 defmed 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 dUling 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 mal{e 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 summadzing how the franchise fee payment was determined, including information showing any adjustments to the total surcharge billed in the pedod for which the payment is being made to account for any uncollectib1es, refunds or error corrections. 88 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 fi'anchise 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 enel'gy 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 11se 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. 89 Attest: City Clerk Date Published: Mayor 90 Ordinance No. CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA NATURAL GAS FRANCHISE FEE ORDINANCE AN ORDINANCE ESTABLISHING A NATURAL GAS SERVICE FRANCmSE FEE ON MINNESOTA ENERGY RESOURCES, A MINNESOTA CORPORATION, ITS SUCCESSORS AND ASSIGNS, FOR PROVIDING NATURAL GAS SERVICE WITIllN 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 92 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 propel' 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 01' 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 dUling 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. 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. SECTION 6. Effective Date. The fi..anchise 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 ofFmmington. 2 93 CITY OF FARMINGTON By: Todd Larson, Mayor ATTEST: By: 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 94 <(MayorChr>) Ordinance No. CITY OF FARMINGTON DAKOTA COUNTY, NUNNESOTA NATURAL GAS FRANCHISE FEE ORDINANCE AN ORDINANCE ESTABLISHING A NATURAL GAS SERVICE FRANCHISE FEE ON NUNNESOTA ENERGY RESOURCES, A NUNNESOTA 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, NUNNESOT A 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 Firm 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 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 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 fi'anchise 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 96 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 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 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 ofthe 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 97 ADOPTED this _day of , 2010 by the City Council of the City of Farmington. CITY OF FARMINGTON By: ATTEST: SEAL Approved as to form the day of By: Todd Larson, Mayor Peter J. Herlofsky, Jr., City Administrator 2010. By: City Attorney 3 98 Ordinance No. CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA ELECTRIC FRANCHISE FEE ORDINANCE AN ORDINANCE ESTABLISHING AN ELECTRIC SERVICE FRANCmSE 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 c01poration (NSP) and City of Falnllngton (City) shall collect from its customers and pay to the City an amount based on the following fee schedule aftex adjusttnent 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 Pex Month Residential Stnall Genexal- Non-Demand Stnall C&I Detnand Large C&I Public Street Lighting Municipal Putnping Non-Detnand Municipal Putnping $ 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 itnpose for the tights and privileges herein granted or for the privilege of doing business within the City of Fartnington, 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 itnposed generally upon all real and pexsonal property within the City of Fartnington 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 1 100 one premise, each premise shall be subject to the appropriate fee. In the event a question arises as to the proper fee atnount 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 otheJ: authority having proper jurisdlction, prohibits such recovety, then NSP will no longet be obligated to collect and pay the franchise fee herein contemplated. In addltion, the Company may dlscount or teduce the fee payable fot electricity delivered to a specific customet of the Company when it is tequired to teduce the franchise fee to tetain the business of that customer. Modification 01' reduction of the franchise fee should occU1' if the fee would cause the customer to cease pU1'chasing electricity from the Company by installing equipment to generate 01' pU1'chase 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 atnount collected by Company during complete billing months during the period fot which payment is to be made by imposing a sU1'charge equal to the designated franchise fee for the applicable customet classification in all customer billings for electric service in each class. The payment shall be due the last business day of the 1l10nth 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 SU1'chatge in Company's applicable tates for electric service. Company may pay the City the fee based upon the sU1'charge billed subject to subsequent teductions to account fot uncollectibles, refunds and correction of ettoneous billings. The Company shall provide at the time of each payment a statement sutnmarizlng how the franchise fee payment was detennined, including info:emation showing any adjustments to the total SU1'cha.tge billed in the period fot which the payment is being made to account fot uncollectibles, refunds 01' ettor cottections. 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 indlcate 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 sU1'charge to customer rates to reimbU1'se such utility company for the cost of the fee and that Company will surchatge 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 apptoval 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 FaJ.'1l1ington. 2 101 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 3 102 \ ELECTRIC FRANCHISE 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, PERNUSSION TO CONSTRUCT, OPERATE, REPAIR AND MAINTAIN IN THE CITY OF FARNUNGTON, NUNNESOT A, AN ELECTRIC DISTRIBUTION SYSTEM AND TRANSNUSSION 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, NITNNESOTA,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 1 104 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 FRANCHISE. 2.1 Grant of Franchise. City hereby grants Company, for a peliod 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 elecnic 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 used~ or if the patties 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. 2 105 \ 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. 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 cun'ent 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 Openine:s. 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, 3 106 letter of credit or any other form of secm'ity or assurance that may be required, undel' 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 Ru1es, 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 Company,!, 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!) time and material costs in any area where: (1) the City requests underground lines and all other lines hereafter are changed 4 107 \ 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. I I I I I I II I [ I i I 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,l 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 5 108 \ 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,l shall be entitled to assert in any action every defense or immunity that the City could assert in its own behalf. SECTION7. 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 tnay impose on Company a franchise fee by collecting the amounts indicated in a Fee Schedule set fotth 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 & I - 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 6 109 9.2 Separate Ordinance. The franchise fee shall be inlposed 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 inlplement a separate ordinance will commence until this Ordinance is effective. A separate ordinance which inlposes 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 inlposed 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 detennined 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 inlplemented itnmediately 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 inlposing 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 requite 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 custome1'S by inlposing 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 infOimation 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 enor corrections. 7 110 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 sim.ila.r customer, or by comparing, as to sim.ila.r 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,..coolinguor lighting, or-to ..run.m.a.chinery and. appliances, but shallnot-... 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. I. i I ; I i I I SECTION 12. PREVIOUS FRANCmSES SUPERSEDED. This franchise supersedes any previous electric franchise granted to Company or its predecessor. Passed and approved: ,2010. 8 111 \ Attest: City Clerk Date Published: Mayor 9 112 CITY OF FARMINGTON DAKOTA COUNTY, NUNNESOTA SUMMARY OF ORDINANCE NOS. ORDINANCES RENEWING GAS AND ELECTRIC FRANCHISES WITH DAKOTA ELECTRIC ASSOCIATION AND NORTHERN STATES POWER D/B/A XCEL ENERGY, AND ESTABLISHING FRANCmSE FEE SCHEDULES FOR THE PROVISION OF GAS AND ELECTRIC SERVICES BY DAKOTA ELECTRIC ASSOCIATION, NUNNESOTA 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 ofthe 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 cun'ent. 153818vl 1 114 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 MERC 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 Pel' 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 2 115 By: Peter J. Herlofsky, Jr., City Administrator Approved as to form this _ day of ,2010. By: Joel J. Jamnik, City Attorney Published in the Farmington Independent the _ day of ,2010. 153818vl 3 116