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HomeMy WebLinkAbout08.20.12 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 August 20, 2012 7:00 P.M. CITY COUNCIL CHAMBERS Action Taken 1. CALL TO ORDER 7:00 P.M. 2. PLEDGE OFALLEGIANCE 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 (8/6/12 Regular)(8/13/12 Workshop) Approved b) Approve Temporary On-Sale Liquor License Farmington Liquors - Administration Approved c) Adopt Resolution—Approve Gambling Premise Permit—Administration R32-12 d) Approve Repair of Tennis Courts Rambling River Park—Parks and Recreation Approved e) Approve Temporary Out-of-Class Pay Liquor Operations—Human Resources Approved 0 Acknowledge Resignation Liquor Operations—Human Resources Acknowledged g) 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) Approve On-Sale and Sunday Liquor License Tailgaters Sports Bar& Grill - Administration Approved 9. AWARD OF CONTRACT 10. PETITIONS,REQUESTS AND COMMUNICATIONS a) July 2012 Financial Report-Administration Information Received b) Approve Agreement for Asbestos Removal and Repair of Roof 431 Third Street—Parks and Recreation Approved 11. UNFINISHED BUSINESS a) Approve Quotes Dushane Parkway Sidewalk- Engineering Approved 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 2 Approve Council Minutes (8/6/12 Regular)(8/13/12 Workshop) Regular Minutes 4 Workshop Minutes 8 Approve Temporary On-Sale Liquor License Farmington Liquors Memo 11 Application 12 Adopt Resolution -Approve Gambling Premise Permit Memo 13 Resolution 14 Approve Agreement Rambling River Park Tennis Court Repair and Resurfacing memo 15 agreement form 16 contractor's proposal 17 tabulation form 20 photos 21 Approve Temporary Out-of Classification Pay Liquor Operations Memo 22 Acknowledge Resignation - Liquor Operations Memo 24 Approve Bills Bills 25 Approve On-Sale and Sunday Liquor License Tailgaters Sports Bar and Grill Memo 43 July 2012 Financial Report Memo 44 Approve Agreement Abatement of Asbestos 431 Third Street Property memo 55 agreement form 56 proposal 57 Approve Quotes Dushane Parkway Sidewalk Dushane Walk Quotes 082012 58 Dushane Walk Agreement 082012 60 1 2c1., COUNCIL MINUTES REGULAR August 6, 2012 1. CALL TO ORDER The meeting was called to order by Mayor Larson at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE Mayor Larson led the audience and Council in the Pledge of Allegiance. 3. ROLL CALL Members Present: Larson, Bartholomay, Donnelly, Fogarty, May Members Absent: None Also Present: Andrea Poehler, City Attorney;David McKnight, City Administrator;Kevin Schorzman, City Engineer; Cynthia Muller, Executive Assistant Audience: 4. APPROVE AGENDA MOTION by Fogarty, second by Donnelly to approve the Agenda. APIF,MOTION CARRIED. 5. ANNOUNCEMENTS Ms. Julie McKnight, representing CEEF, presented the third of five loan payments for Dew Days. She thanked the City for the loan and the participation of staff. Dew Days was very successful and is getting bigger every year. 6. CITIZEN COMMENTS 7. CONSENT AGENDA MOTION by Fogarty, second by Bartholomay to approve the Consent Agenda as follows: a) Approved Council Minutes(7/16/12 Regular)(7/23/12 Workshop) b) Adopted RESOLUTION R30-12 Accepting Donation Pollution Prevention Day —Municipal Services c) Approved School and Conference—Parks and Recreation d) Adopted RESOLUTION R31-12 Accepting Donation 2012 Dew Run—Parks and Recreation e) Approved Quote Trail Maintenance-Engineering f) Approved School and Conference—Fire Department g) Approved DNR Grant—Fire Department h) Acknowledged Resignation Fire Department—Human Resources i) Acknowledged Resignation Police Department—Human Resources 4 Council Minutes(Regular) August 6,2012 Page 2 j) Approved Appointment Heritage Preservation Commission-Administration k) Approved Bills APIF,MOTION CARRIED. e) Approve Quote Trail Maintenance-Engineering Councilmember May asked why there were only two bids. City Engineer Schorzman stated two bids is typical. There are a lot of companies that do trail maintenance, but use their own proprietary material on trails. He found several companies used master seal in the past and it worked well. Councilmember May asked if we are using something no one else uses, is that a good thing. City Engineer Schorzman explained other cities do use this product and gave examples of where it has been used. 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS,REQUESTS AND COMMUNICATIONS 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) Establish Liquor Operations Committee-Administration The MMBA recommended the City implement a liquor operations committee. Their report included guidelines on the committee's duties and agenda examples. The purpose of our committee can be determined by the City Council. City Administrator McKnight recommended a monthly review of financials, sales, and hot issues and work on one,three, and five year business plans. He expected the committee to meet monthly. The committee would be comprised of two Councilmembers,the City Administrator,and liquor operations management staff. Councilmember Fogarty felt this was a great idea. She recommended Mayor Larson sit on the committee. Councilmember May felt it would be helpful to have a resident or business owner involved in retail on the committee. Councilmember Fogarty stated this is not a formal board or commission, and having people come in for presentations would be helpful. Councilmember Donnelly agreed with including someone with a business background. Councilmember Bartholomay agreed and suggested two residents or business owners. City Administrator McKnight stated this committee is strictly advisory and would provide ideas and summaries of what is occurring. Staff will start advertising for community members as soon as possible. This committee would be brought back each year for appointments. Councilmember Bartholomay nominated Councilmember May to sit on the committee. MOTION by Fogarty, second by Donnelly to establish the committee with Mayor Larson, Councilmember May,two business owners/residents,the City Administrator,and liquor operations manager. APIF,MOTION CARRIED. 5 Council Minutes(Regular) August 6,2012 Page 3 b) Approve Assessment Waiver PID 147700029090-Engineering This waiver is for a landlocked parcel directly north of 309 Main Street. Originally,these two parcels were together. At some point,the north 50 ft.of the lot was split off. It is 3,000 sq. ft. and is not buildable. The owner of 309 Main Street is interested in purchasing it and combining it with his lot. The parcel has $9,000 in deferred assessments from the Main Street project and the Elm Street project which makes it impossible for him to purchase it. Staff requested Council waive the assessment conditioned upon it being combined with 309 Main Street. If not,the assessment will continue to exist as there is no access to the parcel and you cannot build on it. Councilmember May asked if the owner of 309 Main Street could pay the interest on the assessment. It should never have been assessed in the first place. Staff agreed when the assessment search was done, it showed up as a parcel and an assessment was placed on it. There is$2,600 in interest accrued,which is half the value of the property. Council discussed the issue further, and agreed the lot should never have been assessed in the first place. MOTION by Fogarty, second by Bartholomay to approve waiving the assessment on PID 147700029090 contingent upon the sale of the parcel and the combination of that parcel with the 309 Main Street property. APIF,MOTION CARRIED. 13. COUNCIL ROUNDTABLE Councilmember Donnelly: The Dakota County Fair is this week and he encouraged resident to attend. Councilmember Fogarty: She will be salsa judging at the Fair. Tuesday is National Night Out. Next Tuesday is the Primary Election. Councilmember Bartholomay: Regarding National Night Out, he asked if the City provides lists of parties. Residents can contact the City. August 14, 2012, is Primary Election Day. The filing deadline for Mayor, Council, and School Board close at 5:00 p.m. on that day. Councilmember May: She formally announced she is not seeking re-election. She has five more months to serve and promised to be a good steward to the taxpayer for her remaining term. While it has been a good experience, it has also been very frustrating at times. She stated she might have been naive in thinking Council has a more active role in working with staff and residents to think outside the box. She was not discounting fellow Councilmembers or staff, but how government operates and spends money is far different than the private sector. The private sector takes much more immediate steps to make changes and cut spending and that is not the case in government. Council, staff and residents have to remember who is paying the bills. It is not the profit we are making from selling widgets, but from the taxpayers' pocket books. We get services for the 6 Council Minutes(Regular) August 6,2012 Page 4 money, but we have to be realistic with ourselves and with staff and we cannot keep going to the taxpayers year after year asking for more money. Let the cities in California declaring bankruptcy be a wakeup call to all of us that there will come a point where the bills cannot be paid if they keep rising, because the taxpayers can only pay so much. She did not know the answer. She thought she could be more a part of the solution, but it is difficult to even have a meaningful workshop dialogue to bring up new ideas and then implement them. It hasn't happened a lot. At a recent workshop,just the mention of asking if a budget number was too high for the Rambling River Center has literally inundated her with angry phone calls and e-mails from seniors in the community. No one at the workshop said to close down the center. No one said to eliminate the budget. All we asked was is it too much to spend, should we trim back, can we get more use out of the building to stretch the dollar. If we don't ask the question,the expenses will go up every year. We need to seriously look at our organizational structure, how our departments are run, if we need to privatize some services, how to make the most and best uses of our city-owned facilities, etc. We need to have a dialogue now, not that it will all happen right away, but we need to do a much better job in looking to our future and say when will the taxpayers say they can't pay anymore. Many are already saying that. Perhaps a new dynamic on the Council can get this new dialogue going and get some creative ideas moving in a forward direction. She hoped she helped pave the way for others who will come after her. Mayor Larson: Encouraged residents to follow the City on twitter and Facebook for City information. Household hazardous waste drop-off will be held September 8, 2012, at the Maintenance Facility. He urged residents to shop local. Businesses have seen an increase in business. 14. EXECUTIVE SESSION a) Notice of Claim—Attorney-Client Privilege MOTION by Fogarty, second by Bartholomay to adjourn into Executive Session for attorney-client privilege discussion related to potential pending litigation at 7:39 p.m. APIF,MOTION CARRIED. Executive Session convened at 7:45 p.m. Attendees included Larson, Bartholomay, Donnelly, Fogarty,May;David McKnight, City Administrator;Joel Jamnik and Andrea Poehler, City Attorneys;Julie Fleming Wolf, Attorney. 15. ADJOURN Executive Session and the Council meeting adjourned at 8:26 p.m. Respectfully submitted, Cynthia Muller Executive Assistant 7 City Council Workshop Minutes August 13,2012 Mayor Larson called the workshop to order at 6:35 p.m. Present: Larson, Bartholomay, Donnelly Absent: Fogarty, May Also Present: David McKnight, City Administrator; Todd Reiten, Municipal Services Director MOTION by Bartholomay, second by Donnelly to approve the agenda. APIF,MOTION CARRIED. The purpose of the workshop was to discuss the 2013/2014 Municipal Services and Engineering budgets. Municipal Services Director Reiten reviewed the changes in the streets budget. There are both increases and decreases in various accounts. He noted there is a$5,000 increase in signs and striping materials. This is to fund a plan for sign replacement. Regarding salaries, City Administrator McKnight explained there is an increase because an employee was moved into the streets budget for 2013. Staff also added comp time, other pay, and the health care savings plan that were not in the budget in the past. This budget has increased due to the human resources portion. There are no changes in the snow budget. Next staff discussed parks mowers lease vs. purchase. Currently,the parks department put in $18,000, of which$6,000 is for a skidster and $12,000 is for the mowers. Due to auditing regulations now, we cannot purchase skidsters without paying upfront. In the past the $6,000 was used to lease a skidster for three or four years, and after that we would own it. The City would trade it in for another one, and do the same thing. Now, if we do that we would be owning it and the audit has to show the amount of the skidster upfront for the first year. Because of this, the City will be keeping the one we have. Tractors are allowed to have a maximum of 300 hours/year. Every year we pay$11,000 - $12,000 to lease the mowers. Each year mowers are traded and a new lease is started. Staff would like to look into purchasing mowers. It would cost$23,000 to buy them. Municipal Services would need to borrow$9,000 from another area in 2013. In 2014, staff would budget$9,000 rather than$18,000 and pay the money back. City Administrator McKnight clarified we would not be borrowing $9,000; we are putting another $9,000 into the parks budget to come from the levy. He suggested putting money in the budget to start growing the fund for 2014 and 2015. Municipal Services Director Reiten explained right now we do not get anything when turning them in after spending $12,000 on a lease. If we purchased them we would get approximately $10,000 for a trade-in. We need to have $9,000 to get this started. In following years the budget would be reduced by $9,000. Council Workshop Minutes August 13,2012 Page 2 City Administrator McKnight reviewed the Engineering budget with Council. The Planning division stays flat with a few minor increases. Regarding Building Inspections,there will be some new codes in place so new code books and training will be needed for staff to be prepared. Councilmember Bartholomay noted there was a comment to not do any projects in the near future. If that is the case, he asked if we need to evaluate the amount of engineering staff. Staff will provide more detail on the transition from Bonestroo to City staff. City Administrator McKnight noted we may need to add some dollars into the HR costs because more of the work is falling under the Engineering budget in the general fund rather than water or sewer funds. The Natural Resources budget and snow removal budget go hand in hand. If it doesn't snow,they do more tree trimming. Municipal Services Director Reiten noted in the future we may have to look at new equipment, such as a bucket truck. We are using a sanitation truck to hold the chipper. City Administrator McKnight reviewed the budget from last week. This is changing everyday. Last week,the status had a levy increase at 3.87%or$331,699. He has made the numbers for fiscal disparities consistent for 2013 and 2014 based on the 2012 number. The actual number will be obtained August 17, 2012. His plan is when the budget is brought to Council in September, it will have a preliminary proposed levy increase of 3% or lower, it depends on the fiscal disparities number. Council will see the impact on the houses we use every time so Council can see what happens to the values and the individual tax numbers. Staff will be meeting with the county to make sure we are on the same page. Mayor Larson noted the biggest items in the budget are the fire truck for$135,000,the revenues of$217,000 and the HR of $117,000. City Administrator McKnight stated the State Auditor recommends having a 40% fund balance which means you have 40%of your general fund balance in the bank at the end of the year. We have a$10 million general fund balance, which means we need$4 million at the end of the year. We were at $2.2 million at the end of last year, so we are at 22%. Three weeks from today the preliminary levy will be set. Councilmember Bartholomay asked if there are further reductions in budget they have already seen. City Administrator McKnight stated the general direction was to keep working. Staff will go through all budgets again before September. Any remaining issues will be addressed in September. Councilmembers agreed the budget is on track with what they wanted. This budget includes three eliminated full time positions,two part time positions eliminated, and one full time position going to part time. That is 4.5 people. The percentage of this will be included in the budget. The fire truck,revenue and HR corrections are$480,000. The increase in the budget today is$331,699. Councilmember Donnelly asked about what is done with fiscal disparities money. City Administrator McKnight stated his philosophy is you put the number in the budget that needs to be there. If it goes up half a million, it is not extra fiscal disparities. If that happens, we could lower the levy or start a CIP. It would go in the transfers line item. Councilmembers questioned if we needed$50,000 in the EDA each year. City Administrator McKnight stated the EDA budget had a negative fund balance. Council said to use one time money to get the balance positive, which it will be by the end of the year. The$50,000 is separate for operations. If it's not used, it stays there each year. We receive calls from people wanting to buy property where they have 80%of the funding, but need a little more. That is a potential use for that money. Mayor Larson felt that is the responsibility of the EDA to help 9 Council Workshop Minutes August 13,2012 Page 3 businesses come in. Whether it would be as a loan or a grant,needs to be determined. Staff will include this for discussion in the budget memo. Councilmember Bartholomay asked how much is left from the contingency money. City Administrator McKnight stated none of it has been spent which is approximately$141,000. If nothing happens,that money will go into the fund balance. We have over$100,000 in costs we are going to spend that was not budgeted for. That contingency would help with that issue. We have repairs that need to be done at the old senior center building in order to sell it. We could use some of that money until it gets repaid with the sale of the building. There is a$100,000 reserve in the 2013 budget. MOTION by Bartholomay, second by Donnelly to adjourn at 7:25 p.m. APIF,MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 10 , , City of Farmington ITC 430 Third Street :- F rmington,Minnesota 651,2R0.f,S00•Fax 651280,6899 w ww:ci.1 arrnmgt+m.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Cynthia Muller Executive Assistant SUBJECT: Temporary On-Sale Liquor License—Farmington Liquors DATE: August 20, 2012 INTRODUCTION Farmington Liquors is requesting a Temporary On-Sale Liquor License for their wine tasting event. DISCUSSION Farmington Liquors is requesting a Temporary On-Sale Liquor License for their wine tasting event to be held September 27, 2012, in Rambling River Park. Per State Statute,a Temporary On-Sale Liquor License must first be approved by the City and then forwarded to the State for approval. BUDGET IMPACT The State of Minnesota waives all fees for Temporary Liquor Licenses for non-profit organizations. Therefore,the City has not established a fee for a Temporary On-Sale Liquor License. ACTION REQUESTED Approve the attached application for a Temporary On-Sale Liquor License for Farmington Liquors for their wine tasting event to be held on September 27, 2012. Respectfully submitted, Cynthia Muller Executive Assistant 11 ,off_ •••, Minnesota Department of Public Safety �Alcohol and Gambling Enforcement Division . ::° 444 Cedar St—Suite 133 St.Paul,MN 55101-5133 (651)296-6439 TDD (651)282-6555 APPLICATION AND PERMIT FOR A TEMPORARY ON-SALE LIQUOR LICENSE TYPE OR PRINT INFORMATION NEE OF ORGANIZATION DATE ORGANIZED TAX EXEMPT NUMBER t-Avr���►gt-oN U&WUS - 1 (5o'S 60 2.435 STREET ADDRESS CITY STATE ZIP CODE 09 Elm 5$u- '4"• • F.12t Cmtuc34-ow )-k) 5552.9 NAME OF PERSON MAKING APPLICATION BUSINESS PHONE HOME PHONE t)A j i '11-11\us (cosi)2$a,loci 30 ( ) DATES LIQUOR WILL BE SOLD TYPE OF ORGANIZATION '. p-1-e.,r\ber 2. , 2.0 12- ❑CLUB❑CHARITABLE❑RELIGIOUS OTHER NONPROFIT ORGANIZATION OFFICER'S NAME ADDRESS 9 Elm FaccfAu1340,, )...( }So zt.f ORGANIZATION OFFICER'S NAME ADDRESS ORGANIZATION OFFICER'S NAME ADDRESS Location where license will be used. If an outdoor area,describe Qijer pp -t. 7-A1-4.1•434.00 i f-ta.1 55O24 V�1�12 -} .44 PAVtli 4.411ZO �•' Will the applicant contract for intoxicating liquor services? If so,give the name and address of the liquor licensee providing the service. I .eAT-te 0-V MO CrileS Will the applicant carry liquor liability insurance?If so,the carrier's name and amount of coverage. (NOTE:Insurance is not mandatory.) APPROVAL APPLICATION MUST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL&GAMBLING ENFORCEMENT CITY/COUNTY FIt v'(NI 054-o DATE APPROVED CITY FEE AMOUNT LICENSE DATES DATE FEE PAID SIGNATURE CITY CLERK OR COUNTY OFFICIAL APPROVED Alcohol&Gambling Enforcement Director Note:Do not separate these two parts,send both parts to the address above and the original signed by this division will be returned as the license.Submit to the city or County at least 30 days before the event. PS-09079(6/98) • • 12 • 2c. titRi*.t., C ity of Farmington 430 Third Street ,.,:. Farmington,Minnesota �.�' � 651.280.6800•Fax 651.280.6899 A ww►v.ci.tarmingurn.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Cynthia Muller Executive Assistant SUBJECT: Approve a Gambling Premises Permit—Farmington Fire Fighters Relief Association DATE: August 20, 2012 INTRODUCTION The Farmington Fire Fighters Relief Association is requesting a Gambling Premises Permit at 409 3rd Street. DISCUSSION Pursuant to State Statute and pertinent City Code, an organization must first obtain a resolution from the City, granting permission for gambling to occur at a specific location. The Farmington Fire Fighters Relief Association is requesting approval to conduct gambling activity at Pizza Man, 409 3rd Street. The appropriate application has been received and the Relief Association is requesting the $50 investigation fee be waived. BUDGET IMPACT Gambling permit fees are included in the revenue estimates of the 2012 budget. ACTION REOUESTED Consider the attached resolution approving a Gambling Premises Permit for the Farmington Fire Fighters Relief Association at 409 3rd Street. Respectfully submitted, Cynthia Muller Executive Assistant 13 RESOLUTION NO. R32-12 APPROVING A MINNESOTA LAWFUL GAMBLING PREMISE PERNIIT APPLICATION FOR FARMINGTON FIRE FIGHTERS RELIEF ASSOCIATION 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 20th day of August 2012 at 7:00 p.m. Members Present: Larson,Bartholomay,Donnelly,Fogarty,May Members Absent: None Member Fogarty introduced and Member May seconded the following: WHEREAS,pursuant to M.S.349.166,the State of Minnesota Gambling Board may not issue or renew a Gambling Premise Permit unless the City Council adopts a Resolution approving said permit; and, WHEREAS,the Farmington Fire Fighters Relief Association has submitted an application for a Gambling Premise Permit to be conducted at 409 3rd Street,for Council consideration,and WHEREAS,the Relief Association has requested the$50 investigation fee be waived. NOW,THEREFORE,BE IT RESOLVED by the Farmington City Council that the Gambling Premise Permit for the Farmington Fire Fighters Relief Association at 409 3rd Street,is hereby approved. This resolution adopted by recorded vote of the Farmington City Council in open session on the 20th day of August 2012. ayor Attested to the a/ day of August 2012. rty Administr or SEAL 7'J oc !� , City of Farmington 430 Third Street Farmington Minnesota e 651.280.6RO°•Fax 651.280.6899 ".A 0 wwwci.tarrningum.mn.s TO: Mayor,Councilmembers and City Administrator FROM: Randy Distad,Parks and Recreation Director SUBJECT: Approve Agreement to Repair and Resurface Rambling River Park Tennis Courts DATE: August 20,2012 INTRODUCTION The Rambling River Park tennis courts contain cracks and birdbaths and the coloring of the courts has faded significantly. It has been more than 10 years since the tennis courts have received any repairs or resurfacing work. DISCUSSION Staff solicited quotes from three contractors experienced in the business of repairing and resurfacing tennis courts. Attached is Exhibit A, a tabulation form showing the quotes received. The low quote submitted from C&H Court Surfaces, Inc.from New Market,Minnesota was for$6,650. Work proposed to be completed by the contractor during the project has been attached as Exhibit B. Attached in Exhibit C are some photos of the existing condition of the tennis courts. BUDGET IMPACT $7,500 was approved in the 2012 Park Improvement Fund budget to cover the cost of this repair and resurfacing work. The lowest quote submitted at$6,650 is$850 less than what had been budgeted. ACTION REOUESTED Staff is requesting the City Council approve the attached agreement with C&H Sport Surfaces, Inc. for the repair and resurfacing of the Rambling River Park tennis courts so the work can be completed yet this year. Respectfully Submitted, Randy Distad Parks and Recreation Director 15 FORM OF AGREEMENT THIS AGREEMENT, made and signed this 20th day of August, 2012,by and between the City of Farmington hereinafter called the"Owner"and C &H Sport Surfaces, Inc hereinafter called the "Contractor". THIS AGREEMENT WITNESSETH,that the Owner and Contractor, for the consideration hereinafter stated, agree as follows: ARTICLE I The Contractor hereby covenants and agrees to perform the scope of services as outlined in the Proposal submitted by the Contractor for the following project: Repair and resurface Rambling River Park tennis courts and to complete everything required by this Agreement. ARTICLE H The Contractor agrees that the work contemplated by this Contract shall be fully and satisfactorily completed on or before October 31, 2012. ARTICLE III The Contractor agrees to provide to the Owner a Certificate of Insurance listing the Owner as"additional insured"and having at least$1,500,000 per occurrence liability coverage. ARTICLE IV The Owner agrees to pay and the Contractor agrees to receive and accept payment in accordance with the prices quoted for services provided and set forth in the accepted Contractor's Proposal on file in the Office of the Parks and Recreation Director,the aggregate of which prices, based on the approximate schedule of services, is estimated at$6,650.00. ARTICLE V The Contract Documents shall consist of the following component parts: 1. The Proposal Form submitted by the Contractor. 2. Contractor's Certificate of Insurance listing the City of Farmington as"additional insured". 3. Special Provisions(if any) 4. Specifications(General and Specific Requirements) 5. This Agreement IN WITNESS WHEREOF,the parties have caused these presents to be executed as of the date first above written. CONTRACTOR: OWNER: BY: BY: ITS: MAYOR ITS BY: ITS: CITY ADMINISTRATOR 16 Jul 3012 05:51a C&H Sport Surfaces, Inc 952-461-5679 p.1 Exhibit B rri C H Sport Surfaces, Inc. Quality and Dependability Since 1970 C&H Sport Surfaces, Inc 2312 Seurer Street New Market,MN 55054 To: RANDY DISTAD,PARKS AND REC DIRECTOR From: Tim Carlson Organization Name/Dept: CITY OF FARMINGTON Phone:952-461-5678 Fax: 952-461-5679 Phone number: E-mail:chsportsurfaces©mchsi.com Fax number: 651-280-6899 Web:www.chsportsurfaces.com Urgent: For Review:s Date Sent Number of Pages Including 3 Please Comment: Cover Sheet Please Reply: • Tennis Courts• Artificial Turf Courts • Running Tracks • Basketball Courts • Snow Plowing • Message: 17 Jul 3012 05:51a C&H Sport Surfaces, Inc 952-461-5679 p.2 Sport Surfaces, Inc. Since 1970 TIM CARLSON 2312 SEURER 4111114-6- �`� NEW MARKET,MN 53054 PHONE: 952-461-5678 FAX: 952461-5679 ■uaJiy and DsepmdabilHY July 30,2012 Attn:Randy Distad,Parks and Rec Director City of Farmington 325 Oak St. Farmington,MN 55024 Ph:651-280-6851 Fax:651-280-6899 RE: REPAIR/RESURFACE 2 TENNIS COURTS AT RAMBLING RIVER PARK Randy, Thank you for contacting C&H Sport Surfaces,Inc.regarding your tennis court facility.We have been in the tennis court,running track and basketball court industry for over 40 years and we pride ourselves on quality workmanship and dependable service. C&H Sport Surfaces,Inc.is a member of the BBB,USIA and MASS. PROCESS TO INCLUDE:Approx.1,440 sy -Power spray/hydro wash court surface to remove loose materials,dirt and debris. -Blow entire tennis court of dirt,debris and loose materials. -Clean cracks of weeds and loose materials,fill and blend cracks to surface using acrylic crack filler. -Patch and blend low areas,"birdbaths",to surface. -Apply 2,black,sand fortified acrylic blended filler coats over entire court area according to manufacturer's specifications. -Apply 2,textured,acrylic color coats over entire court area according to manufacturer's specifications.Color to be dark green and red. ' -Upon curing,apply 2"regulation,white playing lines according to specifications. Total cost to complete this project_.__... ...._. .... .. .... ._.»._..._......._...._.._...»»..... ..»........_..._......__.._....__. ..._........_..........._...._....$6.650.00 'A water source will be needed near project location. *2 year manufacturer's warranty. 'Sprinkler system near project location must be turned off *Use of ADVANTAGE SPORT COATINGS Products. *September completion weather permitting. C&H Sport Surfaces,Inc.is fully banded and insured for your project and will issue a certificate of insurance upon request. If you have any further questions,please contact Tim at 952-461-5678. Thank you, Tim S.Carlson • C&H Sport Surfaces,Inc. Acceptance of Proposal:The above prices and specifications are satisfactory and are hereby accepted.You are authorized to do the work as specified above.Payment is to be made within 30 days of project completion date.An interest rate of 18%will be added to all accounts that exceed the 30 day project completion date.Any collection fees due to nonpayment are to be paid by the customer.Cracks are not a warranty item.Upon acceptance,the surface may be played on. Date: / / Authorized Signature:, A signed contract or PO#is required to schedule this project.1 have read and understand the Terms and Conditions of this contract. NOTE:We reserve the right to withdraw this proposal If not accepted within 15 days. TENNIS COURTS o ARTIFICIAL TURF COURTS o RUNNING TRACKS o BASKETBALL COURTS - SNOWPLOWING email:chsportsurfaces&mchsi.com o www.chsportsurfaces.corn Jul 3012 05:51a C&H Sport Surfaces, Inc 952-461-5679 p.3 C&H SPORT SURFACES,INC. TERMS MID CONDITIONS: 1)PRICING The prices set forth herein are based upon current prices and may be subject to change. 2)cF3rA AgalUERS An extra charge will be made to purchases Ibr any material or labor ackfitional tom qucified herein wry to make a complete installation in a workmanlike manner. na which in any manner e with the installation shall be n by Purchaser 3)orTE commencing Obstructions of every the a of rods,swampy conditions or bps,etc.Should prior f apn b veon conditions This eamtei does not Purchaser pl pa the actual cost ofthe additional work caused thereby unless stated in any of the above cauuditions be wed, 'shall�' this proposal. 4) work is started by C&H Sport Surfaces,Inc.under this contract wink may be coivaued to eemPktkm w hou pELAYti V,inc by other or in the plans o purchaser In theevent�4 Sport Sur without Inc. s requi required�from work after starting.Purchaser agrees-to pay c covering the actua tex C 8t Y3 Sport -It is Surfaces,err os rot Inc.caerr reports toth a job site,this coos it +stating work C the acttnl.expenses '�is understood that when C$�H Sport�, for delays,defaults damages causes beyond C&8 Sir S&S Sport Saab Inc.shall Timms- ,governmental actions or occasioned �locker fires and weather. Surfaces,Inc.contc+olinchtdr�, be iequiredt�o frmishC&A Sport him 5) i%zl U"R! r .131A Al Byreworkersib or�sofanynature with the location and cbaras�rofany underground wire,pipes, Inc.in the of the arcukorwbreh might be the cause of which algid interfere with or be damaged by C&H Sport Surfaces, are omitted from the�furnished C ttrH injuries,or other dam.Ifthe Purchaser fails to do so,or ifauny of the aforesaid Surfaces,Inc,the Purchaser agrees to release,indemnify,hold harmless and defend C&H Sport Surfaces,Inc. from and against any and all liability.loss damages,fine and expenses thereby or from any claims,demands or saitabase*aeon. 6 This contract is subject to all applicable laws,regulations and ordinances of any federal,state or local governmental authority or agency. ofarneyea<from m�defects and in the ',i7'iiifAlf�Army All material and labor sold hem is warranted surface releasing Spalding or excessive event fading. hereunder ES NOT be repaired without IN NO EVENT SHALL C&II SPORT SURFACES,INC.RELIABLE FOR.ANY CONSE DOES NOT iAMA ES.There cracking. width extend beyond the d�tionofthe face h unless FOR.AN1C CUI3SEQLfE61TlAI-D'AMAGFS.Tiaa+e are not-warranties stated in the proposaL on accounts past 30 days.All 8)PAYT_�shall be nab.cash upon receipt tf invoice with 18%annual interest charges ail accounts are payable ink States finds,flee of _exchange, collection or other charges.C&H Sport Surfaces, reserves the right to Ptenthe owner ofihe property if timely payment TS OF COLT$m0N Should the Buyer default inks obligations herein,the Buyer shall,in addition to other obligations h}ein� Inc.for all cost of collection,including reasonable attorney's fees. herein,be liable to C&H Sport Surfaces, 10)RtI. G S P if needed,mcludmgthe ofees therefore shall be the sole responsibility of Purchaser. attic terms and conditions of this contract, 11)are T�11�S The above and terms and conditions change shall only be whole or in and are intwded as between complete Purchaser and exhaustive C Inc...This contract shall not be assigned by Purchaser,in the pared C&H Sport , ,executors or �,writing ofC&RS Surfaces,Inc.and shall be bi upon � part,assigns of the the hereto. aivW err of any default shall not be considered as a waiver of any subsequent fit-No conditions, terms,agreemaits,or Andations other than those stated herein shall be binding on C&l3 Sport Surfaces,Inc. • 12)Bonds,Additional Insureds and Certificates of Insurance will be issued upon request,at adrlitional costs if necessary. 33)An access to a pressured water source will be near project location. initial return copy 19 a a) �O E a 0) c .5 `t 0 N a) Ce -a 0 0 c a — U) 1- co co 3 0 ea � � >, .u) 0. � � .c a)re •C a) -- aa)) = c) N 'o 0 C) a o 0 a cn -a c a) o.� • o aa0 i" 0 "E " N ca 0 a U) 0 1 0 0 0 U) 0) mej .Q 0 E ea OL E 0 LL c O R c 7 c▪c I" c J 'CU +N+ d a) a Cl a • re a = It co 't N a CU N .Fa•+ V O N O. 2 (/) t a8 WI 0 J 0 Exhibit C Rambling River Park Tennis Court Existing Condition Photos RAC ..._ 4 ,,,, , . N V y f -fir il s 21 2e. City of Farmington "'� 1� 430 Third Street a ' - Farmington,Minnesota 651.280.6800.Fax 651 280.6899 wwwel.tannmgton_mnu.s TO: Mayor, Councilmembers and City Administrator FROM: Brenda Wendlandt, Human Resources Director SUBJECT: Approve Temporary Out of Classification Pay—Liquor Operations DATE: August 20, 2012 INTRODUCTION The purpose of this memorandum is to request approval for temporary out of classification pay for David Trihus, Liquor Store Manager. DISCUSSION It is being recommended that David Trihus receive a temporary pay adjustment for taking on the responsibilities of the Liquor Operations Manager until a new Liquor Operations Manager is hired. Though this position is not a union position, the City's practice regarding "out of classification" compensation has been consistent with the language in the AFSCME collective bargaining agreements. That language states the following: "Employees assigned by the EMPLOYER to assume the full responsibilities and authority of a higher job classification for forty (40) consecutive working hours or more shall be paid at an amount equal to the minimum step of the higher pay grade or at one step above the employee's current rate of pay, whichever is greater. Holiday pay will be included as working hours when determining eligibility for out of classification pay." Mr. Trihus's current bi-weekly salary is $2,333.34. The minimum bi-weekly amount of the higher pay grade is $2,524.80 which is greater than one step above Mr. Trihus's current pay grade. Therefore, staff is recommending that Mr. Trihus receive a temporary pay adjustment at the minimum step of the higher pay grade. BUDGET IMPACT It is anticipated that these costs will be paid out of the savings due to the current vacancy. 22 ACTION REQUESTED Approve the temporary out of classification pay increase for David Trihus. Respectfully Submitted, Brenda Wendlandt, SPHR Human Resources Director cc: Personnel file 23 7-c- y - City of Farmington 430 Third Street Farmington,Minnesota 651.280.6800•Fax (51.280.6899 A prawr wwwci.tarmhigton.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Brenda Wendlandt, Human Resources Director SUBJECT: Acknowledge Resignation—Liquor Operations DATE: August 20, 2012 INTRODUCTION The City received notice that Mr. Randy Petrofske has resigned from his position as the Liquor Operations Manager with the Administration Department. DISCUSSION Mr. Petrofske has been employed with the City of Farmington since June 13, 1984, and has been a valued member of the City organization. The City appreciates his commitment to the organization and wishes him well in his future endeavors. ACTION REQUESTED Acknowledge the resignation of Mr. Randy Petrofske effective August 3, 2012. 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DISCUSSION Mr. Craig Loeschke has submitted the required license fees and application for an On-Sale Liquor License and On-Sale Sunday Liquor License for Tailgaters Sports Bar and Grill, located at 10 N 8th Street.The application and required documentation have been reviewed and approved by the Police Department. BUDGET IMPACT The fees collected are included in the revenue estimates of the 2012 budget. ACTION REQUESTED Approve an On-Sale Liquor License and an On-Sale Sunday Liquor License for Tailgaters Sports Bar and Grill at 10 N 8th Street. Respectfully submitted, Cynthia Muller Executive Assistant 43 iy��, City of Farmington rvil 430 Third Street Farmington,Minnesota t�o 651.280.6800•Fax 651.280.6899 "",0 wwwci!armington.mn.us DATE: August 20,2012 TO: Mayor and City Council FROM: David J.McKnight,City Administrator SUBJECT: July 2012 Financial Report INTRODUCTION Attached for your review is the July 2012 financial report. I have listed a number of points of interest for your review below. General Fund Revenues The general fund revenues are at 50.74%of the budget through July which represents 58%of the year. The first half property tax payment was received in June. All of the remaining revenues, with the exception of franchise fees,are below the 58%mark at this point. This includes the permits category which is at 55.25%of budget. Building permits individually are at 53.1%of budget. General Fund Expenditures The general fund expenditures are at 52.37%of the budget through July. There are some budgets that are over the 58%mark at this point that I will continue to monitor. I discussed the Emergency Management budget having completed the upgrade of the outdoor warning sirens in last month's report. The Finance budget is at 64.77%but we did find an audit charge that needs to be removed from the Finance budget and redistributed to a number of other budgets. This correction will occur with the August report. The Engineering budget is at 63%of budget due to more work being performed that is charged to this budget as compared to some costs being attributed to other funds such as the sewer or water fund as has been our history in previous years. Overall the General Fund expenditures are below budget as a group which is good news. Rambling River Center The Rambling River Center had$11,821 in expenditures in July compared to$5,663 in revenues. Revenues at the RRC are at 56.83%through July and expenditures are at 52.05%in that same time period. 44 Swimming Pool The pool had$38,811 in expenditures in July compared to$25,767 in revenues. The July expenditures includes almost$6,000 for the cost of the portable lift that we were required to purchase under the ADA that most of you saw on the recent tour with the PRAC. The pool is scheduled to close on August 19,2012. Special Revenue Funds The special revenue funds are established to account for specific revenue sources or to finance a specific activity. EDA-July expenditures totaled$143 while revenues were$184. The fund balance went from -$74,125 to-$55,334 due to the transfer that is taking place each month to help eliminate the negative fund balance. The City Council approved this transfer as a part of the 2012 budget. Ice Arena-June expenditures totaled$10,846 while revenues were$98. The expenditures associated with the arena in July were primarily staff related but also include utility costs and insurance. Some of you saw the work that is going on in the arena during our recent PRAC tour that included painting of the floor and walls at the arena. The fund balance for the arena went from-$260,071 in June to-$270,819 in July. Enterprise Funds The enterprise funds are self-supporting and do not need financial assistance from the general fund. Downtown Liquor Store-July expenditures were$164,260 while revenues were$179,915 for a gross profit of$15,655 for the month. Pilot Knob Liquor Store-July expenditures were$222,746 while revenues were$220,083 for a gross loss of$2,663. There were significant purchases of beer in July that should increase profits in August and September. Overall the fund balance for the liquor stores,after transfers,went from$402,427 in June to $409,585 in July. I remind you that most of the equity in the fund balance for the liquor stores is product and not cash. Sewer,Solid Waste,Storm Water and Street Lights-These funds are all in line with where they should be at this point in the year. DISCUSSION Review the financial report and discuss any issues you may have. 45 BUDGET IMPACT None. ACTION REQUESTED None,information only. 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Council expressed a desire to abate the asbestos before this property is put back on the market for sale.The shingles on the south side of the building's roof have curled. DISCUSSION Staff has solicited quotes to abate(remove)the asbestos contained in the City owned property at 431 Third Street.The low quote from Mayo Systems, Inc was in the amount of$42,998. A second quote received from Envirobate Metro to abate the asbestos was in the amount of$63,115. Recently the roof on the south side of the building has become an issue. The shingles on the south side of the building have started to curl. The shingles on the north side are still intact but are old. Facility maintenance staff researched the cost of new materials to replace the entire roof. While the cost to replace the roof is estimated at$10,000 it would be a good idea to build in a 20%contingency or$2,000 in the event that it is discovered that the plywood under the shingles would need to be replaced. Staff feels that it could take up to about one week for a crew of 3-4 City staff members to complete the removal and replacement of the roof assuming that the plywood underneath is in good condition and the weather is cooperative. BUDGET IMPACT Total cost of the asbestos abatement and roof repair,including a 20%contingency amount,is$54,998. Currently there is no funding set aside in the 2012 budget to pay for the abatement of the asbestos and replace the shingles on the roof. Staff has researched grant funding opportunities and has learned that there is currently one potential grant source for asbestos abatement but the application deadline was May 1,2012. Staff is recommending that the funding for the asbestos abatement and the removal and replacement of the roof shingles be paid from the Contingency Account in the General Fund's 2012 Adopted Budget. ACTION REQUESTED Staff is requesting the following from the City Council related to the 431 Third Street property: • approve the attached agreement with Mayo Systems for the abatement of asbestos • approve the purchase of roofing materials and have staff replace the roof Respectfully submitted, Randy Distad Parks and Recreation Director 55 FORM OF AGREEMENT THIS AGREEMENT,made and signed this 20th day of August, 2012,by and between the City of Farmington hereinafter called the"Owner"and Mayo Systems, Inc hereinafter called the"Contractor". THIS AGREEMENT WITNESSETH,that the Owner and Contractor, for the consideration hereinafter stated, agree as follows: ARTICLE I The Contractor hereby covenants and agrees to perform the scope of services as outlined in the Proposal submitted by the Contractor to the Owner for the following project: Abatement of Asbestos at 431 Third Street, Farmington, MN and to complete everything required by this Agreement. ARTICLE II The Contractor agrees that the work contemplated by this Contract shall be fully and satisfactorily completed on or before November 30, 2012. ARTICLE III The Contractor agrees to provide to the Owner a Certificate of Insurance listing the Owner as"additional insured"and having at least$1,500,000 per occurrence liability coverage. ARTICLE IV The Owner agrees to pay and the Contractor agrees to receive and accept payment in accordance with the prices quoted for services provided and set forth in the accepted Contractor's Proposal on file in the Office of the Parks and Recreation Director,the aggregate of which prices, based on the approximate schedule of services, is estimated at$42,998.00. ARTICLE V The Contract Documents shall consist of the following component parts: 1. The Proposal Form submitted by the Contractor. 2. Contractor's Certificate of Insurance listing the City of Farmington as"additional insured". 3. Special Provisions(if any) 4. Specifications(General and Specific Requirements) 5. This Agreement IN WITNESS WHEREOF,the parties have caused these presents to be executed as of the date first above written. CONTRACTOR: OWNER: BY: BY: ITS: MAYOR ITS BY: ITS: CITY ADMINISTRATOR 56 Exhibit A Asbestos Abatement Proposal MAVO SYSTEMS PROPOSAL Environmental Contracting Services DATE: July 10 2012 PROPOSAL SUBMITTED TO: PROPOSAL NO: Parks and Recreation ADDRESS: DESCRIPTION OF WORK Asbestos Abatement 430 Third St. CITY,STATE,ZIP: SITE LOCATION: Unoccupied Commercial Building Farmington,MN 55024 ATTENTION: ADDRESS: 431 Third St. Randy Distad PHONE: CITY,STATE,ZIP: Farmington,MN 55024 651-280-6851 E-MAIL ADDRESS: FAX NO: Mayo Systems,Inc.proposes the following scope of work: 1) Removal of asbestos building materail from 431 Thied St. Farmington. 2)Asbestos to be removed is in survey from Davis Environmental dated 5-11-12 #050412.001.01 3)Ten day notice to State of MN, needed for this project. Abatement for renovation of building cost$42,998.00 Abatement for demolition of building cost$37,450.00 Project Notes: A). Included in the price is the cost of labor, material, equipment, disposal, insurance (up to $2,000,000.00 occurrence), overhead and profit. B). Work to be peformed during regular business hours. C). Water and power to be provided by owner. We propose to furnish material and labor-complete in accordance with above Scope of Work,for the sum of: dollars SEE ABOVE Terms of Payment:Net 30 days Payment(s)to be made as follows: In the event payment am not made as outlined herein,the undersigned agrees to pay all costs of collection and attorney's fees incurred by Maw Systems,Inc. All material is guaranteed to be specified.All work to be completed in a workmanlike manner according to standard practices.Any alteration of deviation from above spadfications involving extra costs will be executed only upon written orders,and will become an extra charge over and above the estimate.All agreements contingent upon strikes,accidents or delays beyond our control.Owner to carry fire,tornado and other necessary insurance. Our workers are fully covered by Workman's Compensation Insurance. Owner agrees to supply Mayo Systems,Inc.with 110 volt power and portable water to complete the cleaning process. Authorized Signature Note: This proposal may be withdrawn by us if not accepted within 90 days John Luchsinger-Project Manager Acceptance of Proposal: The above prices,specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payment will be made as outlined. Signature Date of Acceptance: Signature MAVO SYSTEMS,INC. OFFICE NO.:(507)281-4345 4330 Centerville Road FAX NO.:(507)281-4351 E-mail address:jluchsinaerIf)mavo.com White Bear Lake,MN 55127 TOLL FREE NO.:(888)788-4378 57 //a. 17i its City of Farmington 1 430 Third Street , :t: Farmington,Minnesota 651.2R0_6R00•Fax 651.28O.6899 -41.4 POO-_ w.owci.idrrninguon.mn.ur TO: Mayor, Councilmembers, City Administrator FROM: Kevin Schorzman, P.E., City Engineer SUBJECT: Dushane Parkway Walk Quotes DATE: August 20, 2012 INTRODUCTION At the July 2, 2012, meeting, Council directed staff to prepare plans and solicit quotes for the completion of the walk on the east side of Dushane Parkway between the CDA project and McDonald's in the Vermillion River Crossings development. DISCUSSION, This walk is part of the remaining infrastructure improvements related to the Vermillion River Crossings development that were discussed with Council on July 2, 2012. The walk would complete the sidewalk/trail loop within the development, and provide pedestrian access between the two parcels. The following are the estimates that were provided to Council on July 2w': • Sidewalk from CDA project to McDonalds: $40,000-$50,000 • Intersection Lighting: $75,000-$100,000 • Future sidewalk/trail work: $50,000-$55,000 Staff solicited quotes for construction costs associated with installing the walk along the east side of Dushane Parkway between the CDA Project and McDonald's. The following is a summary of the quotes received: Michael Tutewohl Homes Inc. $ 34,494.00 Erickson Construction of Lakeville,Inc. $ 43,097.76 Ryan Contracting Co. $ 43,936.00 Based on the quotes received, staff is recommending that the Council enter into an agreement with Michael Tutewohl Homes to complete the walk along the east side of Dushane Parkway between the CDA Project and McDonald's. 58 Dushane Parkway Walk August 20,2012 Page 2 of 2 BUDGET IMPACT Project costs will be paid from the $202,160.93 that the city received as a result of the second amendment to the Vermillion River Crossings disbursing agreement that was approved at the July 2, 2012, Council meeting. ACTION REQUESTED By motion, approve the attached agreement with Michael Tutewohl Homes Inc. to construct the aforementioned walk. Respectfully submitted, Kevin Schorzman,P.E. City Engineer cc: file 59 FORM OF AGREEMENT BETWEEN CITY OF FARMINGTON AND MICHAEL TUTEWOHL HOMES, INC. FOR NON-BID CONSTRUCTION CONTRACT THIS AGREEMENT made this 20th day of August,2012,by and between the CITY OF FARMINGTON,a Minnesota municipal corporation("Owner"or"City") and MICHAEL TUTEWOHL HOMES,INC.,a Minnesota corporation("Contractor"). Owner and Contractor, in consideration of the mutual covenants set forth herein,agree as follows: 1. CONTRACT DOCUMENTS. The following documents shall be referred to as the"Contract Documents", all of which shall be taken together as a whole as the contract between the parties as if they were set verbatim and in full herein: A. This Agreement. B. Specifications and Requirements-2012 Dushane Parkway Walk C. Project Plans D. MnDOT Standard Specifications for Construction E. Contractor's Quote. In the event of a conflict among the provisions of the Contract Documents,the order in which they are listed above shall control in resolving any such conflicts with Contract Document"A" having the first priority and Contract Document"E"having the last priority. 2. OBLIGATIONS OF THE CONTRACTOR. The Contractor shall provide the goods, services, and perform the work in accordance with the Contract Documents. 3. CONTRACT PRICE. Owner shall pay Contractor for completion of the Work, in accordance with the Contract and in accordance with the unit prices received on the quote, inclusive of taxes, if any. 4. PAYMENT PROCEDURES. A. Contractor shall submit Application for Payment upon completion of the work. Application for Payment will be processed by the City Engineer. B. Payments to Subcontractors. (1) Prompt Payment to Subcontractors. Pursuant to Minn. Stat. § 471.25, Subd. 4a,the Contractor must pay any subcontractor within ten(10) days of the Contractor's receipt of payment from the City for undisputed services provided by the subcontractor. The Contractor must pay interest of 1 1/2 percent per month or any part of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest Dushane Parkway Sidewalk Agreement KAS:082012 Page 1 of 7 penalty payment for an unpaid balance of$100.00 or more is $10.00. For an unpaid balance of less than$100.00,the Contractor shall pay the actual penalty due to the subcontractor. (2) Form IC-134(attached)required from general contractor. Minn. Stat. § 290.92 requires that the City of Farmington obtain a Withholding Affidavit for Contractors,Form IC-134,before making final payments to Contractors. This form needs to be submitted by the Contractor to the Minnesota Department of Revenue for approval. The form is used to receive certification from the state that the vendor has complied with the requirement to withhold and remit state withholding taxes for employee salaries paid. D. Final Payment. Due to the small scope and short duration of this project, only one payment will be made upon completion of the project as recommended by the City Engineer. 5. COMPLETION DATE. The Work must be completed by October 19,2012 6. CONTRACTOR'S REPRESENTATIONS. A. Contractor has examined and carefully studied the Contract Documents and other related data identified in the Contract Documents. B. Contractor has visited the Site and become familiar with and is satisfied as to the general, local,and Site conditions that may affect cost,progress,and performance of the Work. C. Contractor is familiar with and is satisfied as to all federal, state, and local laws and regulations that may affect cost,progress, and performance of the Work. D. Contractor has carefully studied all: (1)reports of explorations and tests of subsurface conditions at or contiguous to the Site and all drawings of physical conditions in or relating to existing surface or subsurface structures at or contiguous to the Site(except Underground Facilities) which have been identified in the General Conditions and(2)reports and drawings of a Hazardous Environmental Condition, if any, at the Site. E. Contractor has obtained and carefully studied(or assumes responsibility for doing so)all additional or supplementary examinations, investigations, explorations,tests, studies, and data concerning conditions(surface, subsurface,and Underground Facilities)at or contiguous to the Site which may affect cost,progress, or performance of the Work or which relate to Dushane Parkway Sidewalk Agreement KAS:082012 Page 2 of 7 any aspect of the means,methods,techniques, sequences, and procedures of construction to be employed by Contractor, including any specific means,methods,techniques, sequences, and procedures of construction expressly required by the Bidding Documents,and safety precautions and programs incident thereto. F. Contractor does not consider that any further examinations,investigations, explorations,tests, studies,or data are necessary for the performance of the Work at the Contract Price,within the Contract Times, and in accordance with the other terms and conditions of the Contract Documents. G. Contractor is aware of the general nature of work to be performed by Owner and others at the Site that relates to the Work as indicated in the Contract Documents. H. Contractor has correlated the information known to Contractor, information and observations obtained from visits to the Site,reports and drawings identified in the Contract Documents, and all additional examinations,investigations, explorations,tests,studies, and data with the Contract Documents. The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work. J. Subcontracts: (1) Unless otherwise specified in the Contract Documents,the Contractor shall, upon receipt of the executed Contract Documents, submit in writing to the Owner the names of the Subcontractors proposed for the work. Subcontractors may not be changed except at the request or with the consent of the Owner. (2) The Contractor is responsible to the Owner for the acts and omissions of the Contractor's subcontractors, and of their direct and indirect employees,to the same extent as the Contractor is responsible for the acts and omissions of the Contractor's employees. (3) The Contract Documents shall not be construed as creating any contractual relation between the Owner and any subcontractor. (4) The Contractor shall bind every subcontractor by the terms of the Contract Documents. Dushane Parkway Sidewalk Agreement KAS:082012 Page 3of7 7. WORKER'S COMPENSATION. The Contractor shall obtain and maintain for the duration of this Contract, statutory Worker's Compensation Insurance and Employer's Liability Insurance as required under the laws of the State of Minnesota. 8. COMPREHENSIVE GENERAL LIABILITY. Contractor shall obtain the following minimum insurance coverage and maintain it at all times throughout the life of the Contract,with the City included as an additional name insured on the general liability insurance on a primary and noncontributory basis. The Contractor shall furnish the City a certificate of insurance satisfactory to the City evidencing the required coverage: Bodily Injury: $2,000,000 each occurrence $2,000,000 aggregate products and completed operations Property Damage: $2,000,000 each occurrence $2,000,000 aggregate Contractual Liability(identifying the contract): Bodily Injury: $2,000,000 each occurrence Property Damage: $2,000,000 each occurrence $2,000,000 aggregate Comprehensive Automobile Liability(owned,non-owned,hired): Bodily Injury: $2,000,000 each occurrence $2,000,000 each accident Property Damage: $2,000,000 each occurrence 9. WARRANTY. The Contractor guarantees that all new equipment warranties as specified within the quote shall be in full force and transferred to the City upon payment by the City. The Contractor shall be held responsible for any and all defects in workmanship, materials, and equipment which may develop in any part of the contracted service,and upon proper notification by the City shall immediately replace,without cost to the City,any such faulty part or parts and damage done by reason of the same in accordance with the bid specifications. 10. INDEMNITY. The Contractor agrees to indemnify and hold the City harmless from any claim made by third parties as a result of the services performed by it. In addition,the Contractor shall reimburse the City for any cost of reasonable attorney's fees it may incur as a result of any such claims. 11. PERFORMANCE AND PAYMENT BONDS. Performance and payment bonds are not required for the doing of any public work if the contract price is$75,000 or less. On projects of more than$75,000 for the doing of public work a payment bond and performance Dushane Parkway Sidewalk Agreement KAS:082012 Page 4 of 7 bond each in the amount of the contract price must be furnished to the City prior to commencement of work. The form of the bonds must satisfy statutory requirements for such bonds. 12. MISCELLANEOUS. A. Terms used in this Agreement have the meanings stated in the General Conditions. B. Owner and Contractor each binds itself,its partners,successors, assigns and legal representatives to the other party hereto, its partners, successors, assigns and legal representatives in respect to all covenants, agreements, and obligations contained in the Contract Documents. C. Any provision or part of the Contract Documents held to be void or unenforceable under any law or regulation shall be deemed stricken, and all remaining provisions shall continue to be valid and binding upon Owner and Contractor,who agree that the Contract Documents shall be reformed to replace such stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provisions. D. Data Practices/Records. (1) All data created, collected, received,maintained or disseminated for any purpose in the course of this Contract is governed by the Minnesota Government Data Practices Act,Minn. Stat. Ch. 13, any other applicable state statute, or any state rules adopted to implement the act, as well as federal regulations on data privacy. (2) All books,records, documents and accounting procedures and practices to the Contractor and its subcontractors,if any,relative to this Contract are subject to examination by the City. E. Software License. If the equipment provided by the Contractor pursuant to this Contract contains software, including that which the manufacturer may have embedded into the hardware as an integral part of the equipment,the Contractor shall pay all software licensing fees. The Contractor shall also pay for all software updating fees for a period of one year following cutover. The Contractor shall have no obligation to pay for such fees thereafter. Nothing in the software license or licensing agreement shall obligate the City to pay any additional fees as a condition for continuing to use the software. F. Patented devices,materials and processes. If the Contract requires, or the Contractor desires,the use of any design, device,material or process Dushane Parkway Sidewalk Agreement KAS:082012 Page 5 of 7 covered by letters,patent or copyright,trademark or trade name,the Contractor shall provide for such use by suitable legal agreement with the patentee or owner and a copy of said agreement shall be filed with the Owner. If no such agreement is made or filed as noted,the Contractor shall indemnify and hold harmless the Owner from any and all claims for infringement by reason of the use of any such patented designed, device, material or process, or any trademark or trade name or copyright in connection with the Project agreed to be performed under the Contract, and shall indemnify and defend the Owner for any costs, liability, expenses and attorney's fees that result from any such infringement. G. Assignment. Neither party may assign, sublet, or transfer any interest or obligation in this Contract without the prior written consent of the other party, and then only upon such terms and conditions as both parties may agree to and set forth in writing. H. Waiver. In the particular event that either party shall at any time or times waive any breach of this Contract by the other, such waiver shall not constitute a waiver of any other or any succeeding breach of this Contract by either party,whether of the same or any other covenant,condition or obligation. Governing Law/Venue. The laws of the State of Minnesota govern the interpretation of this Contract. In the event of litigation,the exclusive venue shall be in the District Court of the State of Minnesota for Dakota County. J. Severability. If any provision,term or condition of this Contract is found to be or become unenforceable or invalid, it shall not effect the remaining provisions,terms and conditions of this Contract,unless such invalid or unenforceable provision,term or condition renders this Contract impossible to perform. Such remaining terms and conditions of the Contract shall continue in full force and effect and shall continue to operate as the parties' entire contract. K. Entire Agreement. This Contract represents the entire agreement of the parties and is a fmal, complete and all inclusive statement of the terms thereof, and supersedes and terminates any prior agreement(s), understandings or written or verbal representations made between the parties with respect thereto. L. Permits and Licenses; Rights-of-Way and Easements. The Contractor shall give all notices necessary and incidental to the construction and completion of the Project. The City will obtain all necessary rights-of- way and easements. The Contractor shall not be entitled to any additional Dushane Parkway Sidewalk Agreement KAS:082012 Page 6 of 7 compensation for any construction delay resulting from the City's not timely obtaining rights-of-way or easements. M. If the work is delayed or the sequencing of work is altered because of the action or inaction of the Owner,the Contractor shall be allowed a time extension to complete the work but shall not be entitled to any other compensation. OWNER: CONTRACTOR: CITY OF FARMINGTON MICHAEL TUTEWOHL HOMES,INC. BY( ` C 1 Its Mayor Its: r e r, orr AND � J u, Dushane Parkway Sidewalk Agreement RAS:082012 Page 7 of 7