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HomeMy WebLinkAbout03.05.12 Council Packet City of Farmington Mission Statement 430 Third Street Through teamwork and cooperation, Farmington,MN 55024 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 5, 2012 7:00 P.M. CITY COUNCIL CHAMBERS Action Taken 1. CALL TO ORDER 7:00 P.M. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA S. ANNOUNCEMENTS/COMMENDATIONS 6. CITIZEN COMMENTS/RESPONSES TO COMMENTS(This time is reserved for 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.) 7. CONSENT AGENDA a) Approve Council Minutes (2/21/12 Regular) Approved b) Adopt Resolution—Reestablish/Establish Existing Precinct Boundaries and New Polling Locations -Administration R10-12 c) Appointment Recommendation Water Board-Administration Approved d) Adopt Resolution—Approve Joint Powers Agreement with Dakota County for Fueling Services—Municipal Services R11-12 e) Accept Resignation Municipal Services—Human Resources Accepted f) Approve Bills 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) 2011 National Pollutant Discharge Elimination System Phase II Annual Report—Natural Resources Information Received 9. AWARD OF CONTRACT 10. PETITIONS,REQUESTS AND COMMUNICATIONS a) December 2011 Financial Report-Finance Information Received b) Lakeland Construction Finance Claim - Engineering Approved 11. UNFINISHED BUSINESS 12. NEW BUSINESS 13. COUNCIL ROUNDTABLE 14. EXECUTIVE SESSION a) City Administrator Six-Month Performance Evaluation 15. ADJOURN Persons with a disability may request a reasonable accommodation by contacting the City Administrator's office at 651-280-6803. Request should be made 24 hours in advance or as early as possible to allow time to arrange accommodation. Table of Contents Agenda 2 Approve Council Minutes (2/21/12 Regular) Minutes 4 Adopt Resolution - Reestablish/Establish Existing Precinct Boundaries and New Polling Locations Memo 8 Resolution 9 Map 10 Appointment Recommendation Water Board Memo 11 Adopt Resolution Approve Joint Powers Agreement with Dakota County for Fueling Services JPA with County 12 Resolution 13 Acknowledge Resignation - Municipal Services Ack Resignation_Mlossi 14 Approve Bills Bills 15 NPDES Phase II Annual Report NPDES Ph II Annual Report 43 December 2011 Financial Report December 2011 Memo 44 December 2011 Preliminary Report 47 Lakeland Construction Finance Claim Lakeland Claim 030512 53 Settlement Offer to Farmington 55 City Administrator Six-Month Performance Evaluation Memo 57 1 COUNCIL MINUTES REGULAR February 21, 2012 1. CALL TO ORDER The meeting was called to order by Mayor Larson at 7:00 p.m. 2. PLEDGE OFALLEGIANCE Troop 116 Boy Scouts,Nathan Wilson and Tyler Haugebak led the audience and Council in the Pledge of Allegiance. 3. ROLL CALL Members Present: Larson,Bartholomay, Donnelly,May Members Absent: Fogarty Also Present: Andrea Poehler, City Attorney;David McKnight,City Administrator;Teresa Walters,Finance Director;Kevin Schorzman, City Engineer;Cynthia Muller, Executive Assistant Audience: Jessica Autey, Tim Haugebak, Tyler Haugebak,Nathan Wilson, Holly Ingling, Lenny Hall 4. APPROVE AGENDA MOTION by Bartholomay, second by Donnelly to approve the Agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS a) Recognize Jessica Autey—Prudential Spirit of Community Award Ms.Jessica Autey received the Prudential Spirit of Community Award which exemplifies the value of volunteer community service and is a role model to other youth as well as adults in the community. Ms.Autey and a friend raised$1600 to make activity kits for teens at Children's Hospital. She also won the Gold Award in Girl Scouts. Mayor Larson presented her with a commendation. 6. CITIZEN COMMENTS 7. CONSENT AGENDA MOTION by Bartholomay, second by May to approve the Consent Agenda as follows: a) Approved Council Minutes(2/6/12 Regular)(2/13/12 Workshop) b) Adopted RESOLUTION R8-12 Accepting Donations Rambling River Center Renovation Project—Parks and Recreation c) Approved MN Shade Tree Short Course—Parks and Recreation and Natural Resources d) Accepted Resignation Heritage Preservation Commission and Rambling River Center Advisory Board-Administration e) Approved School and Conference—Fire Department f) Received Information January 2012 Financial Report-Finance 4 Council Minutes(Regular) February 21,2012 Page 2 g) Approved Bills APIF,MOTION CARRIED. f) January 2012 Financial Report-Finance Councilmember May understood the delay for receiving the December report was due to revenue from utility bills. Finance Director Walters added there is also other revenue that comes in January and February. Councilmember May recalled the Rambling River Center and the pool have been moved to the general fund. She asked if they can still appear in this financial report with details on revenues and expenses. Staff will provide that information in the monthly fmancial reports. Regarding the EDA operating fund, Councilmember May asked if the transfer will be done monthly. Finance Director Walters stated transfers are done monthly, however we don't actually have the money until June and December. The transfer could also be done sooner. City Administrator McKnight noted the December 2011 report will be available at the next Council meeting. 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS,REQUESTS AND COMMUNICATIONS a) Adopt Resolution—Approve Street Maintenance Services Joint Powers Agreement-Engineering City Engineer Schorzman presented the Joint Powers Agreement for seal coating. The City has been part of this agreement for the past seven years. This is now a perpetual agreement,rather than year to year. The City does not have to participate in all the items. Farmington was the last City in the group to assess for seal coating. Now that seal coating is included in the levy,the group decided to change to a perpetual agreement. Councilmember May asked if Council will continue to see the amount each year for approval. City Engineer Schorzman can provide a recap of the project,but it would not need approval as it is now included in the budget. Councilmember May asked what happens if the number drastically increases. Staff will not know that until after bids are received, and if there is a drastic change Council will be informed. Councilmember May stated that is the reason she pauses when we add something to the levy. Attention to the detail tends to fade away. She would like Council to stay posted on the numbers. City Engineer Schorzman will have a presentation on the seal coat project at a Council meeting once we are closer to the project. Councilmember May asked about administration costs and are there costs we add to each assessment for City costs. Staff replied no,the administration cost is what Farmington pays to Burnsville for the bid packet process. Councilmember May stated so the amount that is part of the levy is just for the work and materials. Staff stated the administrative cost would also be included,but there will not be personnel costs. 5 Council Minutes(Regular) February 21,2012 Page 3 Councilmember Donnelly noted by all the cities grouping together,everyone should save. Burnsville is actually drafting the documents and managing the process. Mayor Larson confirmed we have someone on site inspecting the work. Is that inspection fee included in this? Staff replied no,the understanding from Council was that you did not want personnel costs included. The$350,000 put in the levy is for seal coating. Personnel costs are already in the budget and are not included in the project. Mayor Larson would like to see actual costs compared to estimated costs to see if we are in line with the$350,000 for seven years to pay for the entire City. Once bids are received staff will share that information. Roads that will not last for seven years will not be seal coated. Councilmember May stated if the bids come in lower,we have an agreement that we will stay with the plan. MOTION by Bartholomay, second by Donnelly to adopt RESOLUTION R9-12 authorizing the City to enter into the Joint Powers Agreement administered by the City of Burnsville for the seal coat and crack sealing improvements. APIF,MOTION CARRIED. 11. UNFINISHED BUSINESS 12. NEW BUSINESS 13. COUNCIL ROUNDTABLE Councilmember Bartholomay: He spoke with City Administrator McKnight and Finance Director Walters about the ice arena and concerns Council has received regarding summer ice. He stated there is approximately$111,000 left over from the renovation project. That could be used to purchase the dehumidification system. It would not cover the entire amount, so we would need to bring in the school district and the hockey association to cover it. If we put it in,we also want to make sure we have the revenue. Mayor Larson asked staff to provide the cost of the dehumidification system, then we can invite the school and the hockey association to participate. Councilmember May had asked Finance Director Walters when the last funds were paid,because she was not aware there were remaining funds. If the actual bills come in lower,then the procedure is that remaining funds go to pay down the bond. Part of the reason we did not include the dehumidification system,was not just the cost,but the additional revenue received in the summer would never cover that large expense. So even if there are funds available,the revenue still has to come in. Unless both pieces can be answered, she will not change her position. She understood why parents would want the program to continue in the summer, but did not know the amount of revenue needed to cover it. She agreed the City should give the school and the hockey association a chance to respond. Councilmember Donnelly did not recall we had$111,000 left,but if there is a way to put in summer ice without losing money, he would like to see it. We made improvements to the building and we should see if it comes close to breaking even. The ballfields,parks and trails do not make money, but we still maintain them for the residents. He puts the ice arena in that same category. Last summer was horrendously humid, so that should be 6 Council Minutes(Regular) February 21,2012 Page 4 taken into account. Councilmember May stated we have to have the dehumidification system to have summer ice. Staff will bring information back to Council. Councilmember Bartholomay felt it would be a good idea for Council and the City Administrator to have a retreat to set some goals. It will be held at City Hall and City Administrator McKnight will provide some dates for March. Councilmember Bartholomay thanked staff for the cost savings of$530 for mailing the new City News and Rec Guide. Councilmember May: The City Newsletter and the Park and Recreation Guide are combined into one publication, City News and Recreation Guide. Residents received this in the mail this week. It contains a lot of good information on City services and recreation programs. City Administrator McKnight: The Parks and Recreation Commission would like to meet with the Council as part of the April workshop to discuss the budget and a request to Empire regarding their new ballfield complex. They also want to schedule a date for the annual park tour. August 8,2012 was set for the park tour. City Engineer Schorzman: An article and map on the seal coating project is included in the new City News and Recreation Guide. The CONDAC group,which is a group of cities in Dakota County, discussed a way to combine permitting systems. The county has developed a way for residents to go to their website and obtain permits for the county and cities within Dakota County at the same time. This is a great opportunity to work together. This would be for right-of-way permits, small utility permits, etc. Building permits are not included. Council will provide an agreement related to this at an upcoming meeting. He noted Engineering Technician Kris Keller and his wife had a baby boy this week, and Kris also recently passed his Professional Engineer exam. Mayor Larson: A wine tasting is being held right now at The Ugly Mug. He reminded everyone to shop local. He gave an example of how a local business went above and beyond to provide a service for him. This is what happens when residents get to know local business owners and this happens frequently. This does not happen when you go to big box stores in other cities. Mayor Larson urged residents to support our local businesses. 14. ADJOURN MOTION by Bartholomay, second by May to adjourn at 7:34 p.m. APIF,MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 7 7, rA_A2c.�► City of Farmington ,�, 1 430 Third Street I p �, Farmington,Minnesota �° 651.280.6800•Fax 651.280.6899 ww%v.u.iarrningt4rn.nm_us TO: Mayor, Councilmembers and City Administrator FROM: Cynthia Muller, Executive Assistant SUBJECT: Reestablish/Establish Existing Precinct Boundaries and New Polling Locations DATE: March 5,2012 INTRODUCTION Every ten years states are required to redefine legislative and congressional districts in accordance with updated population distributions provided by the United States Census. DISCUSSION Legislative Redistricting is complete and Farmington is entirely located within Congressional District 2 and Legislative District 58B. Cities need to establish precincts with any changed boundaries or establish existing precinct boundaries by April 3,2012. Staff is not recommending changes to precinct boundaries,however we do need to establish/reestablish polling locations as follows: Precinct One Rambling River Center,325 Oak Street Precinct Two Faith United Methodist Church, 710 Eighth Street Precinct Three Farmington Maintenance Facility, 19650 Municipal Drive Precinct Four Farmington Lutheran Church, 20600 Akin Road Precinct Five Bible Baptist Church, 19700 Akin Road Precinct Six Farmington City Hall,430 Third Street Dakota County will notify affected residents by mail prior to the 2012 election. Notification of new polling locations is also available on the City's website, in the City News and Recreation Guide, advertised in local newspapers, on Government Channel 16,maps were distributed at the Community Expo,maps are posted at City Hall and the Rambling River Center,notices have been placed on Facebook, and staff is researching placing the map as an insert in utility bills. BUDGET IMPACT Costs incurred by elections are included in the 2012 budget. ACTION REOUESTED Adopt the attached resolution establishing/reestablishing precinct boundaries and polling locations. Respectfully submitted, Cynthia Muller Executive Assistant 8 RESOLUTION NO. R10-12 REESTABLISHING EXISTING PRECINCT BOUNDARIES AND ESTABLISHING/REESTABLISHING POLLING LOCATIONS 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 5th day of March, 2012 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 204B.14, subd. 3c and 204B.135, subd. 1, after legislative redistricting is finished cities need to establish precincts with newly changed boundaries and/or reestablish existing precinct boundaries by April 3, 2012; and, WHEREAS, Precincts must be arranged so that no precinct lies in more than one legislative or congressional district; and, WHEREAS upon completion of Redistricting,the City of Farmington falls entirely within Congressional District 2 and Legislative District 58B; and, WHEREAS,precinct boundaries are to be established with clearly recognizable physical features. NOW,THEREFORE, BE IT RESOLVED by the Farmington City Council that precincts be reestablished with the existing precinct boundaries. BE IT FURTHER RESOLVED that Polling Places be established/reestablished at the following locations: Precinct One Rambling River Center, 325 Oak Street Precinct Two Faith United Methodist Church, 710 Eighth Street Precinct Three Farmington Maintenance Facility, 19650 Municipal Drive Precinct Four Farmington Lutheran Church, 20600 Akin Road Precinct Five Bible Baptist Church, 19700 Akin Road Precinct Six Farmington City Hall, 430 Third Street Also, Farmington City Hall, located at 430 Third Street, is a designated polling location for voters voting by absentee ballot. This resolution adopted by recorded vote of the Farmington City Council in open session on the 5th day of March, 2012. Mayor Attested to this 6 44 day of March, 2012 Administra or SEAL 2012 New Polling Locations 180TH STREET I , if _ �- ).----- Viii j � ....r.L._* Lic___Nal-----;[ ,,,, c,-<I "' • ; ELK RIVER TRAIL ` (''''')\ �� r.:1 F��L �� // -._1 i r:sz� s _ 190TH STREET. �r _ 9LF �L_._ c lr Y '-'-1 c it ' l ,T.\ 195TH STREET n I Slkj ii i j. 11--) N c./'''/> t grZ, S\-, .5 \ _2 - 1( iç[ F____11:1 E li---)3RD ,\ STRET y A VO __,,, ill . A ! va - r EE /fpf © 208TH STR l _1"711-__ � T 003 a Jit h , Da ---._. --- - — , ,, , _,,, i , O im.-al="79. ..4,..4x14 _..__._`l_•r-----w �.T� 'ice®®: —11'-f" Z R=a 1:88: ,�JL_f,. .__411---1 - 688001 .�J t _ ---7 O _ z Z j ._ . III:0 I ELL=L rr —— 220TH STREET 1,, w / / I❑ JI I Il i I , tl, PRECINCT/POLLING LOCATION A 00 Rambling River Center, 325 Oak Street 1 i iI _�u. 1 O® Faith United Methodist Church, 710 Eighth Street -l 1 —_ —__1 c:;1+ `) Farmington Maintenance Facility, 19650 Municipal Drive Farmington Lutheran Church, 20600 Akin Road Bible Baptist Church, 19700 Akin Road 00 Farmington City Hall, 430 Third Street 10 7c. j��..' City of Farmington ` 430 Third Street !ti l�a.rmington, Minnesota E 651.280.6800.Fax 651.280,6899 wtib wcl.tarm nlgL4rn.m1tu i TO: Mayor, Councilmembers and City Administrator FROM: Cynthia Muller,Executive Assistant SUBJECT: Appointment to Water Board DATE: March 5,2012 INTRODUCTION/DISCUSSION The City Council is recommending appointing Mr. Mitchell Snobeck to the Water Board. The term of this seat is through January 31,2015. ACTION REOUESTED Approve the appointment of Mr. Mitchell Snobeck to the Water Board for the above stated term. Respectfully submitted, Cynthia Muller Executive Assistant 11 -2d j City of Farmington ; Street Farmington,Minnesota \ 651.280.6800•Fax 651?80.6899 w'wwei.fiarmingum.nln.u.. TO: Mayor, Councilmembers, and City Administrator FROM: Todd Reiten, Director of Municipal Services SUBJECT: Adopt Resolution Approving Joint Powers Agreement with Dakota County for Fueling Services DATE: March 5,2012 INTRODUCTION& DISCUSSION Dakota County has offered the City an opportunity to fuel their diesel vehicles and equipment at County fueling stations,receive reports on fuel usage by vehicle, and take advantage of State of Minnesota Contract fuel pricing.Attached is a Joint Powers Agreement for your consideration. Because the State bid has already been awarded for this year,the City will not receive the State of Minnesota's 2012 contracted locked rate.To take advantage of future State Contract pricing, the City will need to order a predetermined amount of diesel fuel and will be obligated to purchase 80%of the amount ordered.The City will pay the fixed State Contract price plus 5% for administrative overhead,compared to the daily fluctuating retail prices. On average, City vehicles use around 30,000 gallons of diesel fuel per year. BUDGET IMPACT Taking advantage of State Contract prices by purchasing fuel from Dakota County will result in stable budget projections and should result in lower fuel costs. ACTION Adopt the attached resolution authorizing the City to enter into the Joint Powers Agreement with Dakota County for purchasing Diesel fuel. Respectfully submitted, Todd Reiten Director of Municipal Services 12 RESOLUTION NO. R11-12 APPROVING JOINT POWERS AGREEMENT WITH DAKOTA COUNTY FOR FUELING SERVICES Pursuant to due call and notice thereof, a regular meeting of the City Council and the City of Farmington, Minnesota, was held in the Council Chambers of said City on the 5th day of March, 2012 at 7:00 p.m. Members present: Larson, Bartholomay, Donnelly, Fogarty, May Members absent: None Member Fogarty introduced and Member Bartholomay seconded the following resolution: WHEREAS, Minn. Stat. 471.59 authorizes local governmental units to jointly or cooperatively exercise any power common to the contracting parties; and, WHEREAS, the City of Farmington and the Dakota County Board of Commissioners support opportunities to share resources for the benefit of their constituents; and, WHEREAS, the County has existing fuel stations and fuel card program that can be used to provide these services. NOW THEREFORE, BE IT RESOLVED that the City of Farmington enter into an agreement with Dakota County for the following purposes: The County will provide fueling services to the City at County-owned fueling stations. BE IT FURTHER RESOLVED that the proper City officers be and hereby are authorized to execute such agreement, and thereby assume for and on behalf of the City all of the contractual obligations contained therein. This resolution adopted by recorded vote of the Farmington City Council in open session on the 5th day of March, 2012. Mayor Attested to the ClG' day of March, 2012. G} 4 6 rty Administrator � SEAL 7 - City o o Farmington ;AO/ Street mss , Farmington,Minnesota � , 651.280.613004 Fax 651 280.6899 www.ci.iarminort4m.nin.uv TO: Mayor, Councilmembers, and City Administrator FROM: Brenda Wendlandt,Human Resources Director SUBJECT: Acknowledge Resignation—Municipal Services DATE: March 5,2012 INTRODUCTION The City received notice of Ms. Marion Iossi's resignation from her position as Administrative Support Technician. DISCUSSION The Human Resources Office received notification that Ms. Marion Iossi resigned from her position effective February 29,2012. Ms. Iossi has been with the City for 10 years and has been a respected and valued member of the City Organization. The City has appreciated her commitment to the organization and wishes her well in her future endeavors. ACTION REOUESTED Acknowledge the resignation of Ms.Marion Iossi, effective February 29,2012. 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'a as ab &) 6 ab ab A ab 6 6 ab co ab ab A ab 6 ab ab ab ab ab as ass a �j' Cl) C' Q Q Q Q Q Q Q Q Q Q Q Q Q Q o O z & O pppp O O O N RI a0 N �0 N �0 O O l7 l0 10 OD a0 co t0 `� r� c0 M CD t0 N N N h d; a7 d; a1 t0 r- V; O M 0) a0 h P4 \ ) 0 cM 0I �R sg a0 N c� Fl `,2 2 2 2 2 a0 2 U) c) (0 . a to N N e7 W N O V f� aN- N e�0- O e�0- p V' N .- O �0 C')) M t+N)C N N r r r � (NI W > E C V No r) m Y O se N z Z 0 g'Q. 46101A1%� City of Farmington ;�, `ag 430 Third Strcct 1,1 1,r; 'o1 Farmin ,ton,Minnesota E *� ,e4 6i51,280.6S00•Fax 651.280.6899 www ci.tam►ing'un�.ninu.4 TO: Mayor, Councilmembers, City Administrator FROM: Jennifer Dullum,Natural Resource Specialist SUBJECT: NPDES Phase II Annual Report DATE: March 5,2012 INTRODUCTION Staff will be presenting a summary of the City's NPDES Phase II Annual Report and Storm , Water Pollution Prevention Program from 2011. 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 30,2012. 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 43 o�EA_�Al.�( �o City of Farmington 430 Third Street Farmington,Minnesota 651.280.61400•Fax 651.280.6899 w wwci.tarmingum.mium TO: Mayor,Councilmembers and City Administrator FROM: Teresa Walters,Finance Director SUBJECT: December Financial Report(Draft) DATE: March 5,2012 Enclosed is the financial report for the 2011 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 2012. Below is an explanation for variations from the budget. If you have any questions prior to the meeting,please e-mail me at twalters @ci.farmington.mn.us or call me at 651-280-6880. General Fund Revenues Amount Received Reason for Variance Property taxes 97.89% Although we did not receive 100% of our 2011 taxes,we did receive approximately$200,000 in delinquent taxes(from prior years) which are not considered revenue until received. We had approximately$350,000 in new delinquent taxes. Investments 58.1% Interest rates were at an all-time low in 2011. Council reduced the budget to $80,000 in 2012. Overall General Fund Revenues are at 98.18%of the budget. Due to staff's careful management of the budget, expenditures are at 98.9%of the budget. This reduces the Fund Balance by $71,663 at the end of 2011. 44 Special Revenue Funds: The Special Revenue funds are established to account for specific revenue sources(grants)or to finance a specific activity. Assistance may be needed from the general fund or another designated fund to operate. The following is a summary of each special revenue fund: EDA: At the end of December 2011,the EDA had a negative fund balance in the amount of $178,549. The EDA reduced the deficit through the sale of land in 2011. The 2012 budget includes a transfer that will eliminate the deficit in 2012. Recreation Funds: The Rambling River Center and Pool funds were moved to the General fund in 2012. Budgeted transfers in 2012 will eliminate the deficits. Rambling River Center Operations(Senior Center): In 2011,the Senior Center was funded by a $140,000 annual transfer from the General fund. The Senior Center started the year with a negative fund balance($33,075). They have reduced this to($28,146)as of December 31,2011. Rambling River Center Renovations_ The RRC started the year with a negative fund balance ($159,585). The current fund balance is($145,028). In 2012 the RRC operations will be combined with the renovations fund and moved to the General Fund. Swimming Pool: The Swimming pool is funded by a$20,000 transfer from the Liquor Stores. Without the transfer,the pool would have experienced a reducing in the fund balance by $36,620. The fund balance at the end of 2011 was$41,659. Ice Arena: The Ice Arena experienced a net loss of$14,823 for the year. This deficit adds to the negative fund balance, increasing the deficit to($271,726) at the end of 2011. Enterprise funds: The Enterprise funds are self supporting and do not need financial 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 2011. This entry has also not been completed. Liquor:, Liquor Operations Staff is continually making every effort to reduce costs through appropriate purchasing, staff schedules,renegotiating leases and other controllable expenses. The liquor stores transferred$70,007 to the General Fund and$20,000 to the pool in 2011. Without transfers the Liquor Operations would have seen an overall profit of$130,077 for the year. Overall the Sewer, Solid Waste, Storm Water, and Water enterprise revenues will exceed expenditures for the year once the 2011 revenue billed in January and February is entered. Transfers are to the General fund for Administrative costs and to the Debt service fund to pay for a bond. 45 Street Light Utility: The Street Light Utility fund currently has a deficit balance in the amount of ($51,387). This is a result of Electric bills and equipment repairs costing more than they have in the past. Council approved a change in the way we bill street lights in 2012. This will help eliminate the deficit by the end of 2012. All revenues have not been recorded in this fund; therefore this will also change before the financial reports are fmalized. Graph: The graph shows that overall 2011 YTD fund balance slightly below the 2010 fund balance at this time. This is a result of lower than anticipated revenues. The Fund Balance was reduced by$29,309 at the end of 2011. In order to operate with existing cash in the General fund,the City's goal should be to maintain not only a positive fund balance throughout the year, but also a fund balance that falls within the State Auditor's recommended 35-50%. Our current fund balance was at 24.9%at the end of 2011, and is anticipated to remain at this level for 2012. Respectfully submitted, Teresa Walters Finance Director 46 K MMMMMMMMM M IOM.. .....4....MMMODMMeIMHM... M ... M Eli E i4gE444 5.m4140444.4.0 4444 s". 444 3 4 q q4 4 4 t iu 1vxbeg ml u b V b-AIVNm�� f."RVNAEM4.1= g u1 Nrt R f.i °L {•Vl a a tYV ... M M . . . . gag id iri a o ig ui o g `1C ti g a 'M iV M a» w37 Hi mgg 8 -0" g g .O O 40'fvgmgm !'ego NN' g R Asti g m r. [' .. 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In exchange the receiver would agree to allow the claim and Farmington would receive 5%to 7%of the claim($3,620 to $5,066) • On January 26, 2012, the City received another letter letting us know that the previous offer was still on the table. In that letter, it is noted that over half of the claims have been settled, and we understand several more cities have recently agreed to the settlement. DISCUSSION After discussions with other communities who are also impacted by the failure of Lakeland Construction Finance, it appears that accepting this offer is in the best interest of the City at this time. The potential benefit of not accepting the offer is that there is a chance that we could receive twice the above-mentioned amount ($7,240 to $10,132). The risk is that the claim may be denied in its entirety, and we could receive nothing. 53 At the time that the claim was submitted,the following items were considered when determining the amount of the claim: 1. Approximately$74,000 for principal and interest on outstanding assessments. 2. Approximately $55,000 for boulevard grading, boulevard sodding and seeding, and boulevard trees. 3. Approximately$8,000 for record plans and remaining incidental work order items. 4. Approximately$7,700 for engineering and legal bills related to the claim While this claim has been worked on over the past several years,the development has continued to have homes built on the remaining lots. As this building has continued, both#1 and#2 above have been addressed during the building process. The remaining work order items can be addressed during our normal course of maintenance of the infrastructure in the area, and the engineering department can take our equipment out and obtain elevations and other information typically contained on record plans. This leaves the engineering and legal bills as the only items that we are unable to address in a different manner other than the claim. ACTION REOUESTED Further action to try for maximum reimbursement will result in additional legal costs to the City. Based on this,and the above-mentioned information, staff recommends that the council authorize the acceptance of the proposal in the January 26,2012 letter. Respectfully submitted, Kevin Schorzman,P.E. City Engineer cc: file 54 • FaegreBD.com FAEG RE BAKER USA•UK•CHINA CNIELS Theresa H.Dykoschak Faegre Baker Daniels LIP +1612 766 7229 2200 Wells Fargo Center•90 South Seventh Street theresa.dykoschak @FaegreBD.com Minneapolis•Minnesota 55402-3901 Phone+1 612 766 7000 Fax+1 612 766 1600 January 26,2012 Joel Jamnik • Campbell Knutson 1380 Corporate Circle Curve,#317 Eagan,MN 55121 Re: Lakeland Construction Finance, LLC Claim Number 25,filed by City of Farmington ("Farmington")in the amount of$144,755.00. SETTLEMENT ONtf'ER SUBJECT TO:MINNESOTA.RULE OF EVIDENCE 408 . _ .. .. _' - J'... t .. .. • '..a Dear Mr. Januiik: We represent the Receiver for Lakeland'Coristruction Finance, LLC. As you may, know, on December 19,2011,the Hennepin County District Court approved the settlement in the Bartholomew.v..Avalon Capital Group, Inc. litigation. We are currently in the process of resolving remaining claims against Lakeland to wind down the receivership. - • On November 22,2011,you received a proposal regarding'the resolution of the claim your client filed in the Lakeland receivership. Your client did not accept the proposal and the Receiver's'objections to the claim remain pending: j The Receiver provided similar settlement proposals to each municipality whose claim was based on a letter of credit. Thirteen of twenty-two,letter of credit municipalities accepted the proposal,and the stipulations with the Receiver regarding the allowed amount of their claims were approved at the hearing on December 19, 2011. Each of them has also received an interim distribution on its claim. The purpose of this letter is to inform you that the Receiver's proposal in his November,22,2011,letter remains open until March 2,2012.. As a reminder,the Receiver proposes to allow City of F.armington's Claim in an amount equal to fifty percent(50%) of the filed claim amount. Accordingly,the allowed amount of City:of Farmington's claim would be$72,377.50,and City of Farmington would be eligible to receive pro rata distributions with Lakeland's other unsecured creditors. If the city council for City of Farmington needs to-ratify an agreement regarding,its claim, such ratification must occur before March 2,2012. If your client wishes to accept the Receiver's proposal,please contact me so we can execute a stipulation regarding the allowed claim amount by March 2,2012. 55 Mr.Jamnik Page 2 January 26, 2012 If we are unable to reach a resolution regarding the allowed amount of City of Farmington's claim and execute a stipulation by March 2,2012,the Receiver will file a motion to disallow the claim in its entirety. Please contact me at(612)766-7229 or Theresa.dykoschak @faegrebd.com if you have any questions. Sincerely, Ittelet- Theresa H. Dykos hak fb.us.8011692.01 56 iYa_ I City of Farmington 430 Third Street x1 Farmington,Minnesota ‘04,74,41Y„, 651.280.6800•Fax 651.280.6899 www.dfarmington.mn.us TO: Mayor and Councilmembers FROM: David J.McKnight,City Administrator SUBJECT: City Administrator Six-Month Performance Evaluation DATE: March 5,2012 !� INTRODUCTION Pursuant to Minnesota Statute 13D there are a very limited number of issues that the City Council can go into closed session to discuss. Among the issues allowed to be discussed in a closed session setting are performance evaluations. DISCUSSION I have now been employed by the City of Farmington for six months and that is a traditional time for the City Council to conduct a performance evaluation. I have provided you a summary memo of the work that I have performed in the past six months and proposed goals for my work for the remainder of the year. Please bring this memo with you to the review. The City Attorney will prepare a summary of the evaluation to be included on the agenda for the March 19,2012 City Council meeting. BUDGET IMPACT None. ACTION REOUESTED Make a motion to go into closed session to discuss the six month performance evaluation of City Administrator David McKnight. Respectfully submitted, David J.McKnight City Administrator 57