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HomeMy WebLinkAbout05.06.13 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 Douglas Bonar Terry Donnelly Christy Fogarty AGENDA REGULAR CITY COUNCIL MEETING May 6, 2013 7:00 P.M. CITY COUNCIL CHAMBERS Action Taken 1. CALL TO ORDER 7:00 P.M. 2. PLEDGE OFALLEGL4NCE 3. ROLL CALL 4. APPROVE AGENDA S. ANNOUNCEMENTS/COMMENDATIONS a) American Legion Auxiliary—Kim Lomas Information Received b) Proclaim Historic Preservation Month-Planning Proclaimed c) High School Youth Development Group, Games for Change Information Received 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 (4/15/13 Regular) Approved b) Approve Agreements with Toro Company—Parks and Recreation Approved c) Approve National Recreation and Park Association Conference Attendance— Parks and Recreation Approved d) Approve Agreement with Dryland Hockey Inc.—Parks and Recreation Approved e) Approve Easement Rother(Winkler Land Company)Access—City Attorney Approved f) Adopt Resolution—Accept Donation Farmington Fire Relief Association- Finance R26-13 g) Appointment Recommendation Finance—Human Resources Approved h) Approve Bid for Sale of Rescue 2 Fire Truck—Fire Department Approved i) 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 9. AWARD OF CONTRACT a) Approve Recycling Contract Extension—Municipal Services Approved 10. PETITIONS,REQUESTS AND COMMUNICATIONS a) Approve 2013 Arena Capital Projects Agreements—Parks and Recreation Approved b) 2012 Financial Operating Report- Finance Information Received c) 2013 First Quarter Financial Report-Finance Information Received 11. UNFINISHED BUSINESS 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 Proclaim Historic Preservation Month 2013 Preservation Month Proclamation 4 Approve Council Minutes (4/15/13 Regular) Minutes 5 Approve Agreements with The Toro Company memo 8 product test agreement 9 test site access agreement 13 Approve National Recreation and Park Association Conference Attendance memo 16 Approve Agreement with Dry land Hockey Inc memo 18 agreement form 19 Approve Easement Rother(Winkler Land Co.)Access Memo 23 Map 27 Attorney Letter 28 Adopt Resolution -Accept Donation Farmington Fire Relief Association FireReliefAssnDonation 20130506 36 Accept Donation Fire Relief Assoc 20130506 37 Appointment Recommendation - Finance Appt Rec_McMillen 38 Approve Bid for Sale of Rescue 2 Fire Truck Memo 39 Bid List 40 Approve Bills Bills 41 Approve Recycling Contract Extension Memo to approve recycling extension 73 Agreement 75 Attachment A 78 DSI renewal letter 79 Approve 2013 Arena Capital Projects Agreements memo 80 agreement forms, proposals and tabulation form 82 1 2013 Preservation Month Mayoral Proclamation WHEREAS, historic preservation is an effective tool for managing growth and sus- tainable development, revitalizing neighborhoods, fostering local pride and maintain- ing community character while enhancing livability; and WHEREAS, historic preservation is relevant for communities across the nation, both urban and rural, and for Americans of all ages, all walks of life,and all ethnic backgrounds; and ' WHEREAS,it is important to celebrate the role of history in our lives and the con- tributions made by dedicated individuals in helping to preserve the tangible aspects of the heritage that has shaped us as people; and WHEREAS, "See! Save! Celebrate!"is the theme for National Preservation Month 2013 and is cosponsored by the Farmington Heritage Preservation Commission and the National Trust for Historic Preservation. NOW THEREFORE, I, the Mayor of Farmington,Todd Larson do proclaim May 2013 as Preservation Month, and call upon the people of Farmington to join their fel- low citizens across the.United States in recognizing and participating in this special observance. Authorized Signature Date COUNCIL MINUTES REGULAR April 15, 2013 1. CALL TO ORDER The meeting was called to order by Mayor Larson at 7:00 p.m. A moment of silence was held for the victims of the bombing at the Boston Marathon. 2. PLEDGE OFALLEGIANCE Mayor Larson led the audience and Council in the Pledge of Allegiance. 3. ROLL CALL Members Present: Larson, Bartholomay,Bonar, Donnelly,Fogarty Members Absent: None Also Present: Andrea Poehler, City Attorney;David McKnight, City Administrator;Kevin Schorzman, City Engineer;Tony Wippler, Assistant City Planner;Cynthia Muller, Executive Assistant Audience: 4. APPROVE AGENDA City Administrator McKnight noted item 7d) Hydrant Flushing has been postponed to April 29—May 10, 2013, due to weather conditions. He pulled item 10a)Agreements 2013 Arena Capital Projects and this will come back to the May 6, 2013, meeting. MOTION by Fogarty, second by Bonar to approve the Agenda. APIF,MOTION CARRIED. 5. ANNOUNCEMENTS 6. CITIZEN COMMENTS 7. CONSENT AGENDA MOTION by Bartholomay, second by Fogarty to approve the Consent Agenda as follows: a) Approved Council Minutes(4/1/13 Regular) b) Received Information First Quarter 2013 New Construction Report—Building Inspections c) Approved Joint Powers Agreement 2013 Dakota County Aerial Photography- Engineering d) Received Information Hydrant Flushing—Municipal Services e) Approved 2013 Mowing Contract-Engineering f) Adopted RESOLUTION R24-13 Accepting Donation from Farmington Travel and In-House Baseball Organizations for Rambling River Park and Prairieview Park Ballfield Improvements—Parks and Recreation g) Acknowledged Resignation Administration—Human Resources h) Approved Bills APIF,MOTION CARRIED. 5 Council Minutes(Regular) April 15,2013 Page 2 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS,REQUESTS AND COMMUNICATIONS b) Adopt Resolution—Approve Comprehensive Plan Amendment Empire Orderly Annexation Area-Planning In 2008 Farmington and Empire Township executed a Joint Powers Agreement for orderly annexation of 33 acres. Farmington was authorized to do comprehensive planning and land use zoning. The work involved in this item does not involve annexation; it is only zoning and comprehensive plan guidance. Property owners would have to petition the City to be annexed. This comprehensive plan amendment and zoning involves the following areas: Area A—southwest intersection of CR66 and Cambodia Avenue, seven properties, designated as low density residential and zoned R-1. Area B—northwest intersection of Biscayne Avenue and 210th Street W, 166 acres including ten parcels, three are residential properties designated as low- medium density residential and zoned R-2;two parcels designated as agricultural and zoned A-1. Area C—southeast intersection of Cantata Avenue and 208th Street W, 25 acres including four parcels containing two cemeteries(Corinthian Lodge and St. Michael's Church) and the other half of the area is for farming. The area is designated public/semi-public and is zoned R-2. Area D—East side of TH3, consisting of two commercial businesses(Farmington Plumbing and Heating and former Zarbok Construction), comprised of 2.5 acres and designated commercial and zoned B-1. Area E—East side of TH3 off Chippendale Court,consisting of four parcels totaling 1.39 acres. There are two single family homes, a vacant lot, and a commercial building. All are designated commercial and zoned B-1. Area F—Along hwy 50, north of Fountain Valley Golf Course, containing six parcels totaling 122.48 acres. There are two residences designated low-medium density residential and zoned R-2;and the rest is designated agricultural and zoned A-1. Area G- South of 190th Street,west of the railroad tracks, and east of Mystic Meadows, 248.22 acres containing five parcels all designated agricultural and zoned A-1. 6 Council Minutes(Regular) April 15,2013 Page 3 MOTION by Fogarty, second by Bartholomay to adopt RESOLUTION R25-13 and ORDINANCE 013-662 amending the 2030 comprehensive plan and zoning the properties identified within the Empire orderly annexation area, subject to the Metropolitan Council approval of the 2030 Comprehensive Plan Amendment application. APIF,MOTION CARRIED. 11. UNFINISHED BUSINESS 12. NEW BUSINESS 13. COUNCIL ROUNDTABLE Councilmember Fogarty: Reminded residents winter parking restrictions have been lifted. Curbside clean-up starts this weekend. Councilmember Bartholomay: Baldy's BBQ has opened. City Administrator McKnight: The City News and Recreation Guide has been mailed to residents. Mayor Larson: Dakota County Lumber is having their Annual Deck Expo April 25, 2013. He reminded residents to shop local. 14. ADJOURN MOTION by Fogarty, second by Bonar to adjourn at 7:16 p.m. APIF,MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 7 ,`%j- City of Farmington : 430 Third Street t° ' Farmington,Minnesota 651.2$0.6800•Fax 651 80.6899 www.d.tarming on.mnJr4 TO: Mayor, Councilmembers and City Administrator FROM: Randy Distad,Parks and Recreation Director RE: Approve Agreements with the Toro Company DATE: May 6, 2013 BACKGROUND The Toro Company(Toro) assembles new mowing equipment annually and then conducts field tests at a variety of sites around the Unites States to measure performance of the equipment. DISCUSSIONBUDGET IMPACT For the past several years the City has had an agreement with Toro that allowed Toro to use its equipment in City parks and right of ways at no cost to the City. Toro has once again approached the Parks and Recreation Department about allowing the City to serve as a test site for its turf equipment in 2013. Toro is willing to provide this equipment at no cost to the City in exchange for being able to use the City's parks and right of ways as sites for testing its equipment. Toro would benefit from the arrangement because it allows them to monitor and evaluate how the equipment performs in the field without having to acquire land in which to operate the turf equipment on during the testing. Attached are two agreements the City Council is being asked to approve. The Test Site Access Agreement and Product Test Agreement provide an understanding about how Toro will be able to access City sites,where the equipment will be used, and how the Toro products will be operated and secured when not being used for testing purposes on City of Farmington property. The value of using Toro's equipment is estimated at $6,000 based on the type of equipment being provided and the length of time used in the City of Farmington. The City Attorney has reviewed both agreements and has found them to be in an acceptable format. REQUESTED ACTION Approve by motion the Test Site Access Agreement and Product Test Agreement with The Toro Company. Respectfully Submitted, Randy Distad Parks and Recreation Director 8 eOThe Toro Company 8111 Lyndale Avenue South, Bloomington, Minnesota 55420-1196 Phone 952-888-8801 www.toro.com Fax 952-887-8258 PRODUCT TEST AGREEMENT (Signature Page) PRODUCT TEST AGREEMENT entered into between: TEST SITE City of Farmington Business Name 430 3rd Street Test Site Address Farmington, Mn 55024 City, State, Zip Code And TORO THE TORO COMPANY 8111 Lyndale Avenue South Bloomington, MN 55420 DURATION This agreement 5/6/2013 begins This agreement end 4/14/2014 The "Products" to be tested pursuant to this agreement shall be mutually agreed to by TEST SITE and TORO on a case by case basis. TORO and TEST SITE agree to the SPECIAL TERMS AND CONDITIONS attached as Addendum A and the STANDARD TERMS AND CONDITIONS attached as Addendum B. TO: • TESTS E Signature Signature Ron Eichten 7"=„0/e,LQ rs-o" Name (Please Print) Name (Please Print) Manager, Product Evaluation /12_,.�//or Title Title 5/7/.3 .7 ? 07o/3 Date Date Product Test Agreement Page 1 of 4 ADDENDUM A SPECIAL TERMS AND CONDITIONS No SPECIAL TERMS AND CONDITIONS unless specified below. Product Test Agreement Page 21 Of 4 ADDENDUM B STANDARD TERMS AND CONDITIONS A. AGENCY The personnel of either party hereto shall not be construed in any way as agents of the other party nor may such personnel accept service of process for the other party. It is understood that TEST SITE shall be serving under this Agreement as an independent company, that the relationship of employer and employee shall not exist between TORO and TEST SITE hereunder,and that the parties shall not be eligible to participate in any benefits extended by the other party to its respective employees. B. SCOPE OF USE OF PRODUCTS TEST SITE personnel shall not use such Products for any purposes other than in the performance of their duties with TEST SITE on such premises which TEST SITE maintains from time to time,nor shall such personnel be permitted to use such Products on the premises of their private residences or those of their friends or relatives. TEST SITE shall limit and restrict the use of all such Products to such premises which it maintains from time to time,unless prior written approval from TORO is obtained. C. TAXES TEST SITE shall pay any taxes assessed or levied on such Products or for work performed while using such Products. D. SECURITY TEST SITE shall make a reasonable effort to ensure continuing security regarding such Products being operated and tested under the terms of this Agreement,and in this regard shall(a)post signs at all entrances to and in the vicinity of the maintenance area made available for TORO equipment and Products clearly stating"Restricted Area,Employees Only",or the equivalent;(b)make every effort to ensure that any proprietary equipment of TORO is moved into such TORO equipment and Product maintenance area when suppliers visit TEST SITE,and to keep them away from such area;and(c)instruct its personnel to exercise care in operating such Products so as to minimize the opportunity for any third party to become aware of the operating characteristics and features of such Products being tested. E. TRADEMARKS,TRADE NAMES AND PATENTS No TORO Product or name shall be altered by TEST SITE,except as required by local safety laws,regulations and interpretations, and with the written approval of TORO,nor shall any trademark,patent number,name plate or other markings thereon be removed or obliterated,nor shall anything be done which would in any way impeach or lessen the validity of such patents and trademarks. No trademark or trade name owned by TORO shall be used,either alone or with any other word or words,as part of TEST SITE'S trade or business name, without the advance written approval of TORO. Upon request by TORO,and in any event upon termination of this agreement,TEST SITE shall discontinue completely any use of TORO's trademarks or trade names for any purpose whatsoever absent a specific written agreement to the contrary. TEST SITE shall prohibit the use of TORO's trademarks and trade names by any other associate business of TEST SITE In the absence of TORO'S advance written approval. F. PROPRIETARY INFORMATION All information developed or received by TEST SITE in the course of providing services under this Agreement shall be the property of TORO. TEST SITE shall maintain such information as confidential and shall not use or disclose it to others except as required by law, including the Minnesota Government Data Practices Act. In the event of a data request relating to this Agreement,the TEST SITE shall notify TORO and cooperate in reviewing the request and protecting any security or trade secret rights of TORO in the data. TEST SITE,however, shall not be restricted from using or disclosing information which(a)is or becomes available to the public other than by breach of this Agreement;(b)is in TEST SITE'S possession prior to the time of the disclosure to TEST SITE by TORO and was not acquired,directly or indirectly from TORO;or(c)is made available to TEST SITE by a third party who has the legal right to do so. Upon request,TEST SITE shall return to TORO all documents or things in TEST SITE'S possession or control which record or reduce such information to tangible form,for example,memoranda,drawings,photographs,electronic records,computer programs,models,samples,etc. If TEST SITE must permit its employees,agents or associates to have access to TORO'S proprietary information to provide services under this Agreement,TEST SITE shall,at the request of TORO,identify these employees,agents or associates. Such employees,agents,or associates shall be given a copy of this Agreement by TEST SITE and they shall confirm that they agree to the terms and conditions of this Agreement by a document confirming such fact. TEST SITE,however,shall be and remain primarily responsible for the performance of all obligations assumed by such employees,agents,or associates. TORO'S sole remedies under this paragraph shall be termination of this contract or suit for injunction without claim for damages. G. EVIDENCE OF FINANCIAL RESPONSIBILITY TEST SITE shall provide certificates of insurance to The Toro Company evidencing state statutory workers compensation and general liability insurance with minimum coverage of two million dollars for the TEST SITE. The Toro Company shall provide a certificate of insurance providing general liability and products liability insurance with a minimum coverage of one million dollars for the TEST SITE for the period of the contract. Certificates of these insurances shall be sent within 30 days of the signing of this Agreement by both parties. TEST SITE shall send the certificate to:The Toro Company,Attention: Risk Management Department, 8111 Lyndale Avenue South,Minneapolis,Minnesota,55420. TEST SITE shall keep all such insurance coverage in force throughout the duration of this Agreement. Product Test Agreement Page 31 df 4 H. AMENDMENT This Agreement may be amended only in writing signed by the parties hereto. SUCCESSORS This Agreement shall be binding upon and inure to the benefit of the parties hereto,their subsidiaries and divisions,whether wholly owned or otherwise,and their respective personal representatives,successors,and assigns. J. RENEWAL This Agreement may be renewed for successive one-year terms by mutual agreement of the parties prior to the expiration of the period already under this Agreement,and such renewal shall be documented by a written,duly executed"Renewal of Agreement"to be attached hereto. K. SEVERABILITY In the event any provision of this Agreement is held in any court of competent jurisdiction to be illegal or unenforceable by either party,or is held contrary to the laws of the jurisdiction,such provision shall be severed from this Agreement,and the remainder of this Agreement shall continue in full force and effect. L. NOTICE In the event of a lawsuit or claim brought against TEST SITE or its employees for damage which is alleged to have been caused through the use of a TORO product or component,TEST SITE shall provide TORO with written notice of such suit or claim within ten(10) days of TEST SITE'S receipt of notice of such suit. Any notice,payment,or statement required or permitted to be given or served upon either party pursuant to this Agreement shall be officially given or served and sent to such party by first class mail,postage prepaid,addressed to such party at the address identified In the preamble of this Agreement,or at such other address as one party shall designate by written notice given to the other party. M. TERMINATION This Agreement may be terminated by either party by giving written notice of termination to the other party sixty(60)days prior to the date at which such party elects to have such termination become effective.Notwithstanding such notice,any such termination shall not affect the rights or obligations of the parties hereto which accrue prior to the effective date of such termination. N. MERGER This Agreement sets forth the entire Agreement and understanding between the parties as to the subject matter thereof,supersedes any previous agreement,and merges all prior discussions and negotiations between them. No party shall be bound by and provisions or terms other than as are expressly provided in this Agreement,or as duly set forth on or subsequent to the effective date hereof in writing, signed by the party to be bound thereby,or by a proper and duly authorized representative of such party. O. WAIVER OF BREACH Waiver of any breach of any provision of this Agreement shall not be construed as a continuing waiver of other breaches of the same or other provisions of this Agreement. P. APPLICABLE LAW AND INTERPRETATION This Agreement shall be deemed to have been made in the State of Minnesota and shall be construed,interpreted,and applied In accordance with the laws of that State. This Agreement is subject to the provisions of the Minnesota Government Data Practices Act and subject to review by state audit.TEST SITE consents to the jurisdiction of any court of general jurisdiction located within the County of Dakota,State of Minnesota,with respect to any legal proceedings arising out of or related to this Agreement,and agrees that a mailing to its last known address by registered or certified mail of any process shall constitute lawful and valid service of process in any such proceeding, suit,or controversy. TEST SITE shall bring any legal proceeding arising out of or related to this Agreement only in the federal or state courts located in the County of Dakota and State of Minnesota. In the event TEST SITE institutes any legal proceedings in any other court,it shall assume all of TORO'S costs in connection therewith,including reasonable attorney's fees. The provisions of this paragraph shall survive the termination of this Agreement and shall be binding upon TEST SITE'S officers and directors. Q. PRODUCT TITLE TORO shall retain title to the Products provided to TEST SITE for testing pursuant to this Agreement. TEST SITE shall take reasonable care to avoid damage to Products beyond normal wear and tear;and TEST SITE shall return the equipment to TORO following the prescribed test(s),unless advised otherwise by TORO on a case by case basis. Product Test Agreement Page 41 2f 4 The Toro Company TORO 8111 Lyndale Avenue South Bloomington, Minnesota 55420-1196 ' 1 952-888-8801 Fax 952-887-5909 www.toro.com TEST SI'Z'E ACCESS AGREEMENT TEST SITE ACCESS AGREEMENT entered into between: TEST SITE City of Farmington Business Name 430 Third Street Test Site Address Farmington. Mn 55024 City, State, Zip Code And TORO THE TORO COMPANY 8111 Lyndale Avenue South Bloomington, MN 55420 DURATION This agreement begins 5-6-2013 This agreement ends 4-14-2014 TORO and TEST SITE agree to the TERMS AND CONDITIONS set forth on the back of this page. TORO TEST SITE Signature Signature Ronald Eichten Name(Please Print) Name(Please Print) Manager, Product Evaluation Title Title Date Date Page's 3 TERMS AND CONDITIONS 1. TEST SITE hereby agrees to permit TORO to have ingress and egress to the TEST SITE property for the purpose of conducting a product testing program using various TORO products on such property. The maintenance of this property will provide certain benefits to TEST SITE,but no maintenance of any predetermined area or areas nor any minimum amount of maintenance is required, it being understood that TEST SITE remains fully responsible for the ongoing maintenance of such areas including in particular, those remaining areas not maintained by TORO in connection with this testing program. No compensation of any kind will be paid by either party to the other. 2. TORO will conduct its testing program at reasonable times, either during normal business hours or at such other times as the parties may from time to time agree. 3. The equipment used in this testing program will at all times be operated by the employees of TORO, or TORO's authorized representatives who have been trained and are competent in the operation of such equipment. 4. TORO shall conduct its activities upon the premises so as not to endanger any person thereon, and shall indemnify, save and hold harmless TEST SITE and its employees and representatives, from any and all claims for loss or injury to person or property caused by the acts or omission of TORO, its employees and its representatives. TORO hereby assumes full responsibility for the character and acts of conduct of all of its employees and representatives. 5. TORO shall be solely liable for worker's compensation risks related to its employees and representatives and shall maintain at its sole expense, appropriate insurance in support of the testing program, including liability insurance for personal injury and property damage. 6. TEST SITE shall have no liability for equipment left on the premises by TORO and unattended by its representatives, it being the responsibility of TORO to assume all security risks related thereto, and to either remove or secure the equipment as TORO deems appropriate or immediately upon demand by TEST SITE. 7. All information developed or received by TEST SITE in the course of providing services under this Agreement shall be the property of TORO. TEST SITE shall maintain such information as confidential(Confidential Information)and shall not use or disclose it to others. TEST SITE,however, shall not be restricted from using or disclosing information which(a) is or becomes available to the public other than by breach of this Agreement; (b) is in TEST SITE'S possession prior to the time of the disclosure to TEST SITE by TORO and was not acquired, directly or indirectly from TORO;or(c) is made available to TEST SITE by a third party who has the legal right to do so. Upon request, TEST SITE shall return to TORO all documents or things in TEST SITE'S possession or control which record or reduce such information to tangible form, for example,memoranda, drawings, photographs, electronic records, computer programs, models, samples, etc. If TEST SITE must permit its employees, agents or associates to have access to TORO'S proprietary information to provide services under this Agreement, TEST SITE shall, at the request of TORO, identify these employees, agents or associates. Such Page Uq. employees, agents, or associates shall be given a copy of this Agreement by TEST SITE and they shall confirm that they agree to the terms and conditions of this Agreement by a document confirming such fact. TEST SITE, however, shall be and remain primarily responsible for the performance of all obligations assumed by such employees, agents, or associates. 8. Confidential Information shall remain the exclusive property of TORO. TEST SITE agrees that Confidential Information disclosed hereunder is being received subject to TORO'S ownership rights in such Confidential Information and further, subject to all relevant intellectual and/or proprietary property rights of TORO, including the relevant laws governing patents,trademarks, copyrights, semiconductor chip protection,trade secrets and unfair competition. 9. No rights or obligations other than those expressly recited herein are to be implied from this Agreement. No license is hereby granted, directly or indirectly, under any patent,trade secret, copyright, mask work right, or other intellectual property right now held by, or which may be obtained by, or which are or may be licensable by TORO. 10. In the event of any breach of this Agreement TEST SITE acknowledges that TORO would have no adequate remedy at law, since the harm caused by such a breach could not be easily measured and compensated for in the form of damages, and hereby consents to the specific enforcement of this Section by TORO through an injunction or restraining order issued by an appropriate court. 11. This Agreement may be terminated by either party with sixty(60) days written notice to the other party. "DOCU-1 1" Page 15 ��o EAR City of Farmington 430 Third Street Farmington,Minnesota 651.280.6800•Fax 651.280.6899 1.'wW.C1.IanhIhIgw rL1TIn_u.Y TO: Mayor, Councilmembers and City Administrator FROM: Randy Distad, Parks and Recreation Director SUBJECT: Approve National Recreation and Park Association Conference DATE: May 6, 2013 INTRODUCTION The National Recreation and Park Association(NRPA) is the national organization for Parks and Recreation professionals. In 2013,the NRPA will be holding its annual conference in Houston, Texas from October 7-11.A discount on the registration fee is now being offered for early registrations. DISCUSSION The NRPA conference is an annual training opportunity in which session topics are presented by nationally known and recognized professionals in the field of parks and recreation as well as in other professional fields such as planning, landscape architecture and engineering. Breakout sessions include topics in such areas as: recreation programming, parks maintenance, management, natural resources, outdoor recreation, facility management, citizen advisory boards and aquatics. It is the premier training opportunity for parks and recreational professionals. The City Council, during its July 23, 2012 Work Session discussed City Department Heads attending a national conference, since it had been at least five years since national conferences were not included in the City's budget. During the meeting it seemed that City Council members were in support of covering expenses of Department Heads to attend a national conference but only every other year. The 2013 approved budget included$2,000 in funding for the Parks and Recreation Director to attend the NRPA Conference and the following table shows which Department budgets included the funding: Budget Amount Park Maintenance $700 Outdoor Pool $700 Park and Recreation Administration $600 TOTAL $2,000 16 The following table shows the costs associated with attending the NRPA Conference: Conference Item Estimated Cost Air Travel $442.00 Early Bird Conference Registration $449.00 Hotel $850.00 Meals $275.00 Ground Transportation $100.00 Total $2,116.00 Since the estimated total cost to attend the conference exceeds the amount approved in the 2013 budget by$116.00, staff is willing to cover costs beyond the approved 2013 budgeted amount. Additionally, since staff has not purchased an airline ticket nor has lodging been reserved, it is possible that staff may be able to receive more favorable costs,which means it is possible the total cost may not exceed the budgeted amount. ACTION REQUESTED Approve by motion,the request from the Parks and Recreation Director to attend the NRPA conference in Houston,Texas from October 7-11,2013,with the City covering up to $2,000.00 in conference costs and staff covering any amount that exceeds$2,000.00. Respectfully Submitted, Randy Distad Parks and Recreation Director 17 City of Farmington ,,t 430 Third Street ! ' . Farmington,Minncsota % 651,2RO.6800•Fax 651280,6899 %Now" wwwc1.1di7711ngi1,n.m 1.us TO: Mayor,Council Members and City Administrator FROM: Randy Distad,Parks and Recreation Director SUBJECT: Approve Agreement with Dryland Hockey Inc DATE: May 6,2012 INTRODUCTION Randy Often owner of Dryland Hockey Inc is interested in renting the outdoor hockey rink in North Creek Park this summer to hold a roller ball hockey league(the league). DISCUSSION Staff was approached by Mr.Often about his interest in renting the outdoor hockey rink in North Creek Park from July to September in 2013 for the league. Staff initially negotiated a draft agreement and after review by Mr.Often and the City Attorney an agreement has been finalized and is attached with this memo. The City will receive revenue from the rental fees collected as identified in the attached agreement. BUDGET IMPACT It is hard to project the total revenue from the rental fees because it will depend on the number of hours the outdoor rink will be used during the league. The revenue received will adequately cover the utility costs related to the use of the outdoor rink during the league's play. ACTION REQUESTED Staff is requesting the City Council approve the attached agreement with Dryland Hockey Inc allowing it to run the league at the North Creek Park outdoor hockey rink from July through September in 2013. Respectfully Submitted, Randy Distad Parks and Recreation Director 18 AGREEMENT This Agreement is made this day of May, 2013, by and between Dryland Hockey Inc(the "Contractor")and the City of Farmington, a Minnesota municipal corporation(the"City") (collectively referred to as the"Parties"). WHEREAS, the City owns and maintains the North Creek Park outdoor hockey rink in the City of Farmington;and, WHEREAS, the Contractor is interested in leasing the North Creek Park outdoor hockey rink for its youth and adult ball hockey(League);and, WHEREAS, the Contractor is willing to pay the hourly rental rate of$25.00 per hour identified in the City's 2013 Fee Ordinance from July 1, 2013 through September 30, 2013; and, WHEREAS, additionally the Contractor is willing to pay the portable toilet service charge that the City has contracted with Schlomkas Portable Toilet and Pressure Washing Service of$113.00 plus tax per month in order to provide toilet services on site for players from the beginning until the end of the League season;and, WHEREAS, it appears to be in the best interest of the City and its residents to allow the Contractor to secure an annual lease from July 1, 2013 through September 30, 2013 in order to use the North Creek Park outdoor hockey rink for its League. NOW, THEREFORE, in consideration of the promises contained herein,the Parties hereby agree as follows: SECTION 1. Terms of Agreement. 1. Except as otherwise specifically provided herein,the Contractor shall be allowed to use the North Creek Park outdoor hockey rink from July 1, 2013 through September 30, 2013 at a rental rate of$25.00 hour for its League. 2. This Agreement shall begin on 12:01 a.m., July 1, 2013 and shall end on 12:00 Midnight on September 30, 2013. 3. The Contractor is limited to scheduling the North Creek outdoor hockey rink between the hours of 6:00 p.m. and 10:00 p.m. 4. The Contractor is allowed to use the lights for League play when it is needed and the cost of the lights is included in the$25.00 per hour rental fee. 5. The City shall be responsible for controlling the operation of the North Creek Park outdoor hockey rink lights with said operation of the outdoor rink lights Page 1 of 4 19 being automated through a computer program that turns the lights on prior to sunset and turns them off at the conclusion of League play for that evening. 6. The Contractor will be responsible to provide to the City a schedule at least one week prior to League play beginning so the City can properly program when the outdoor rink lights turn on and off each evening of League play. 7. The terms of this Agreement do not bind the City and the Contractor to the leasing of any other City-owned facilities. 8. The Contractor agrees to not sell any concessions on site unless it secures the proper permits from the State of Minnesota and the City. 9. The Contractor agrees to make sure all litter/garbage the area around and in the North Creek Park outdoor hockey rink is picked up and disposed of in garbage containers. 10.The City agrees to provide at least two waste containers on site for Contractor to dispose garbage into. 11.The City agrees to empty said waste containers each day after League play if enough garbage is generated to warrant it. 12.The Contractor shall provide to the Parks and Recreation Director all contact names and phone numbers of Contractor's employees who will be involved with the League in the event the City should need to contact them about the League. 13.Both Parties agree to have a meeting at the conclusion of the League's season to conduct an evaluation. 14.The Contractor shall be responsible for painting any rink lines or face off circles needed for the League but only after consulting with the City about the size, location and color of the lines and face off circles. 15.The City will paint over the lines and face off circles after the league has concluded play so it has properly been prepared for flooding of winter outdoor ice. 16.The Contractor will consider purchasing an advertisement sign at the Schmitz- Maki Arena to be displayed during the 2013-2014 ice season. 17.The Contractor agrees to be responsible for providing proper safety training to its staff and for providing any other program requirements and understands the City is only responsible for providing the site and utilities. Page 2 of 4 20 SECTION 2. Insurance Requirements and Indemnification of the City. 1. Contractor shall name the City as an additional insured on their Commercial General Liability Insurance with evidence of coverage supplied to the City in the form of a"Certificate of Liability Insurance"(ACORD 25 (2009/09)or later version) and the endorsement to that policy showing that status and stipulating the thirty day requirement to notify the City of any changes, cancellations, or non- renewal of applicable coverages. 2. The Contractor shall provide to the City a Certificate of Liability Insurance as written proof of insurance protection in such amounts, and from such issuing companies, as shall fully and completely protect the interests of the City, including, at a minimum, the following: INSURANCE TYPE, AMOUNT Auto $2,000,000.00 Combined Single Limit (CSL) or Equivalent Comprehensive Commercial Liability $2,000,000.00 CSL or Equivalent Worker's Compensation(if applicable) As required by State Statute 3. The Contractor shall fully and completely defend, indemnify and hold harmless the City and its employees, officials, officers, and agents from and against any claims for personal injury, including death, and for destruction of damage to its equipment on the City's property, which claims are related to the equipment on the City's property and the source of which occur while this Agreement is in effect. SECTION 3. Termination by the City. In the event that the Contractor fails to perform and carry out any of the terms or conditions of this Agreement strictly in accordance with the provisions hereof or for any reason is unable to properly conduct its business, the City may terminate this Agreement by giving written notice to the Contractor. On termination, all rights of the Contractor to occupy or use the North Creek Park outdoor hockey rink shall end on the 10th day after delivery of such notice by which time the Contractor and all of its officers, agents, and its employees shall vacate the premises and surrender the same to the City quietly and peacefully. The City's termination of this Agreement hereunder shall not prevent or interfere with the recovery by the City of any damages caused by the Contractor to the North Creek Park outdoor hockey rink. Page 3 of 4 21 SECTION 4. Other Termination. NOTWITHSTANDING any other provision, if any local law, rule, regulation, or order prohibits the activities in this Agreement,then this Agreement shall be immediately terminated with both Parties owing no further compensation to each other. SECTION 5. Entire Agreement. This Agreement constitutes the entire understanding of the Parties and no terms may be altered in any way except by the written consent of both Parties. This Agreement may not be assigned or conveyed without each Party's written consent. Dryland Hockey Inc CITY OF FARMINGTON, a Minnesota Municipal Corporation By: By: Todd Larson Its: Owner Its: Mayor By: David McKnight Its: City Administrator Page 4 of 4 22 �,�flFfJlAMyyQroy City of Farmington 325 Oak Street,Farmington,MN 55024 c (651)463-7111 Fax(651)463-2591 'IA www.ei.farmingtonann.us V- p48nA nA PA01 ti TO: Mayor,Councilmembers,City Administrator FROM: Joel Jamnik,City Attorney SUBJECT: Approve Easement-Rother(Winkler Land Co.)Access DATE: Apri117,2013 INTRODUCTION As part of the Prairie Waterway project the City acquired land from Lawrence and Linda Rother in February 1997 following the onset of condemnation proceedings. The area sought to be acquired was a 350 foot strip along the west side of the larger Rother parcel. As part of the stipulation settling the proceedings the agreement contemplated the City providing the Rother's an access easement over the acquired property in order to provide continued access to the remainder of their property. A recent title examination by the current land owner, Winkler Land Development Company, LLC, revealed that no subsequent easement was ever recorded against the City acquired parcel. DISCUSSION The City remains obligated by terms of the stipulation agreement to provide the Rothers, or their successor in title, Winkler Land Development Company, LLC, a nonexclusive easement for street, roadway and utility purposes over,under and across the north thirty feet of the strip acquired by the City in 1997. BUDGET IMPACT Aside from legal services incurred to respond to the landowners request and to prepare the required easement documents,there is no impact to the City budget. ACTION REQUESTED Approve granting of the nonexclusive access easement. 23 (Reserved for recording) GRANT OF EASEMENT The CITY OF FARMINGTON,a Minnesota municipal corporation,the Grantor, hereinafter referred to as the"City",in consideration of One Dollar($1.00)and other good and valuable consideration,the receipt and sufficiency of which is hereby acknowledged,does hereby grant unto WINKLER LAND CO.,LLC,a Minnesota limited liability company, "Grantee"its successors and assigns,forever,a non-exclusive easement for street,roadway and utility purposes over, on,across,under,and through the land situated in the County of Dakota, State of Minnesota,as legally described on the attached Exhibit"A". This appurtenant easement is granted for the purpose of providing access to and from property owned by Grantee contiguous to the Grantor's property,the Grantee's property being legally described as the South One-Half(S %2)of the Northeast Quarter(NE 1A)of Section Thirty-two(32),Township One Hundred Fourteen(114),Range Nineteen(19),Dakota County,Minnesota;excepting therefrom the West Three Hundred Fifty(W 350)feet thereof. The non-exclusive easement is granted subject to the rights of the Grantor,its contractors, agents,servants,and assigns,to enter upon the non-exclusive easement premises at all reasonable times to construct,reconstruct,inspect,repair,and maintain public street,roadway, trail,and utility systems over,across,on,under,and through the non-exclusive easement 24 premises,together with the right to grade,level,fill,drain,and excavate the non-exclusive easement premises,and the further right to remove trees,bushes,undergrowth,and other obstructions interfering with the location,construction,and maintenance of the public street, roadway,trail,and utility easement. The above named City,for itself,its successors and assigns,does covenant with the Grantee,its successors and assigns,that it is well seized in fee title of the above described easement premises;that it has the sole right to grant and convey the easement to the Grantee;that there are no unrecorded interests in the easement premises;and that it will indemnify and hold the Grantee harmless for any breach of the foregoing covenants. IN TESTIMONY WHEREOF,the City hereto has signed this document this day of ,2013. GRANTOR/CITY: CITY OF FARMINGTON By: Todd Larson,Mayor By: David McKnight,City Administrator STATE OF MINNESOTA ) • ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this day of 2013,by Todd Larson and David McKnight,respectively the Mayor and City Administrator,of the City of Farmington,a Minnesota municipal corporation,on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public 169457 25 EXHIBIT"A" TO GRANT OF EASEMENT • A non-exclusive easement for street,roadway,and utility purposes lying over,on, across,under and through the Northernmost Thirty(30)feet of the West Three Hundred Fifty(350)feet of the South Half(S %2)of the Northeast Quarter(NE%)of Section Thirty-two(32),Township One Hundred Fourteen(114),Range Nineteen(19),Dakota County,Minnesota. DRAFTED BY: Campbell Knutson Professional Association 317 Eagandale Office Center 1380 Corporate Center Curve Eagan,Minnesota 55121 Telephone: (651)452-5000 • JJJ 169457 26 Dakota County, MN '"'"%s:, -1J---1_1.11.. i VT1T*1 '17-77--5------ _ -.,.,.,,, l, Li_ ,1 000. ro -- ,„_., , .. .. . f ,,_, _ . _, _ . A ii , ,1 ,. , s, , ii.. ., ... 1 H Easement e ,,, , . 17 ..; -,1 ;.„).(s: 1 _ _ i , , \ ,,, ...., .1 , - . „ , .. ;\--,1 - ‘, _..,...u=, ...,..,_ _ 0 ._, .....,/,' -0_ ,... t .. mR iX ' - V*:---,-7.:',R,';',T,TI'i--,....' ,. : --:, . ‘..___ F.A. ' '' ,, 1; . , , ,,. , t.',:-.1,,:;;--: ' ,, - ,t .,,; ., M c 4. �' Y' t -,14.4'.i' y�,s mu, 1 v ',';'•'.,I 6: ;i ■ r i.4:4' , ,c •`fir ' 4 �I • F Y l'''',* '1 '-,' .. 7,---; '. ,,„...1. ' t-i, , , ',41, * it ,1 4 . z- , „ , ,..„ , ,, , p • it /0 ,i e s 4. -- .lc, - _ „27' : 4,-;1._ ,,.. fr _' 114 _ 1 i - E - � . '41;t, fir, ■ it , Disclaimer:Map and parcel data are believed to be accurate,but accuracy Is not guaranteed. This is not a Map Scale legal document and should not be substituted for a title search,appraisal,survey,or for zoning 1 Inch = 205 feet verification. Dakota County assumes no legal responsibility for the information contained In this data. 4/22/2013 27 DDougherty,Molenda,So!fest,Hills&Bauer P.A. OUGHERTY MOLENDA D I L H 13 S Attorne y Advisors Karen J.Parker Direct dial:(952)953-8823 E-mail:kparker@dmshb.com March 21,2013 Campbell Knutson;P.A. Attention: Joel J.Jamnik,Esq. Office Attorney for the City of Farmington 7300 West 147th Street 1380 Corporate Center Curve Suite 600 317 Eagandale Office Center Apple valley,MN 55124 Eagan,MN 55121 (952)432-3780 Phone g , (952)432-3780 Fax Re: The West 350 Feet of the South Half of the NE%,Section 32, Www.dmshb corn Township 114,Range 19,Dakota County,MN(the"Property") Attorneys Parcel Id.No.: 14-03200-03-012 Michael G.Dougherty'2 Our File No.: 2682-32787 Michael E.Molenda' Dear Mr.Jamnik: Loren M.Solrest" I am writing on behalf of our client,Winkler Land Co., LLC, to request that you Sharon K.Hills prepare an easement for street, roadway and utility purposes over the North 30 Robert B.Bauer''2 feet of the above-referenced Property owned by the City of Farmington (the "City"). The City agreed to provide for that easement in the Stipulation Terrence n Merritt' Agreement By and Between City of Farmington and Lawrence J. Rother and Annette M.Margarlt Linda D. Rother, dated February 10, 1997, a copy of which is attached. Winkler Land Co., LLC, acquired the South One-Half of the NE I/4, excepting the West Stephen A.Ung2 350 feet,from the Rothers in 2002. Gary Huusko3 Please contact me at my direct number, 952-953-8823, to let me know when a Christine J.cassemus draft easement will be available for our firm's review. Thank you for your Brian J.Wisdor12 assistance. Michael 0.Klemm" Very truly yours, Emily Fox Williams Matthew J.Schaap t Jessica L Sanborn Karen J.Parker Paralegal �.v -._-e /-��-��.-,-erg^ .'. Ryan J.Wes v v �{ "d William M.Topka Enclosures .�w Ill Erin E.eoerschel cc: Client ��AI� 2 2013 1 1 Michael G.Dougherty,Esq. s - --i 1-1 7 'Qualified Neutral Under Minn.Gen.R.Prac.114 12 MSBA Board Certified Real Property Specialist 3 Registered Patent Attorney I individual Attorney2 o Licensed In Iowa,Wisconsin and Missouri iii: ,*^••j,4,z* .I: '�.%7,:'. :1 „,y`•: '"}:- �+y;:°::, ': }}:.•..:'iY:• }' '`tit`'.`;• `.�:�.,. ..:- "•.'s• ::a>. ;■ 4 . . •1 „ .Mar 2113d6:4da Bart Winkler 962-432-6238 p.3 Mar. 29 2913 01:52PM P2 FROM :Larry Rather FAX Nil. :� 1 460 13375 :� SWATS OA' MIN2iFt0CVA DISTRICT =VAT COUNTY OF DAKOTA FIRST JUDICIAL DIBTRXC Court File No. 19--C7-94-6206. City of Farmington, oration a Minnesota municipal corporation, • Petitioner. STIPULATION A i> ! m BY AND 7E#ETWNEN va. cITY OF FARMINGTON AND William B. Mince, et. al. LAWRENCE d. ROTKRR AND LINDA D. ROTSER • - Respondents. THIS t'IIPULATIDN AGRI:ISM:1NT is entered into the /WI. day of • February, 1997, by and between the City of Farmington, (hereinafter referred to as "Petitioner") , a municipal • corporation under the laws of the State of Minnesota, and Lawrence a. Rather and Linda D. Rather, husband and wife, •• (hereinafter referred to as "Respondents") as follows: •} I. RECITALs 1. Leda L descrietioi . The above--entitled action was 1 c*mmenced,pursuant to Minnesota Statutes Chapters 117 and 469 as „ amended, for condemnation of the real estate which is legally •i described in Exhibit D-5 of, the Amended petition in this .i proceeding ("Subject Property"). 2. Settlement. It is understood and agreed that the 't I Petitioner commenced condemnation proceedings to acquire the subject property, that the Petitioner obtained title and possession of the subject property on or about November 10, 1941, pursuant to the provisions of Minnesota statutes 9 127.042, and • I iff, rti'::g«$gi'l a h. :•..: :u^i::•,, sl •.° + ;ti: '`:'• s',Ta iF 'LIi : :K :r i, ,.t�:. �jy; .5;y::`:C; t.. : l, s `i i: ii-: - C. t' ~;s'2t : i . . . ZiJ. :=(�},. r• V `: `• l . : i«i ry, :ti l:b:.::• w:: i . ^ .i;•t•'. '862-432-8238 PA Mar211308:40a BarEWirtk4er • FRDP1 :Larry Wither r FAX NU. :651 460 8375 • Mar. 20 20t3 01:5211M P3 •tktat.Pe•0epondents traeaire to• filliy and: f Rally settle their claim for damages+ voss anda ratsal feesin this m gtt er without getiti.ciner pfevious�y tion plcnceed.ngs. herey.n. i furtlie�c aotidemna �A .�oa_0o dixeist3.y�tv • paid its approved appra�sal of value of °ate-- - -�-- the Respondents with respect to the taking of the subject• property. parties hereto 3. �m�d�ati,_,on. x�. is the desire of the ho Respondents, axs�' $ ent by 'Petitioner to R P to pxa'YidEs for the P ym Gill mortgagee mortgages of record, the County of Dakota, and LeVander, remainder of ttse total daivages to �Si7.�.0z'r, P.N. of the agreed open �' �edinQs be paid by' the Petitioner in said condemnation pr o n The parties agree that the remaining t�txsma3•ning damages v).� shall including costs, interest and appraisal fees, Upon .1._47-a-14.-.0-) 01-0-) for all interests in the subject property.so under on satisfaction of all preconditions to its. daxxaC3: i eement, Petitioner' agrees :to pay Respondents, any Mortgages of agx Gillen & Miller, P:A- i record, the aounty of Dakota and LeVax dsx, i the'remain -fg,damages. This as their iniGe�rest ittay �ippear; ! and does resolve a].7. i ssuee between the Btipul.at�•a� in:texsds to; Petitioner arid' Ytespondenta relative to the subject p zCi p arty. • I! xx. AGtRBEEMNT i; Qg T)DR3�'+d in consideration of the premises and their - 1 mutual promia sa, .it is hereby stipulated by and between the parties hereto as folloWst . ' 1. Recitals, The foregoing recitals are. hereby .i •-! 1 ! 2 • 4 •! .:1 !6^1 i ............................................: .EC:i:.::.' �t'•y•: 952-432-6238 P•5 Mar21 13 06:41a Bart Winkler FROM :Larry Rother FAX NO. :651 460 6375 Mar. 20 2013 01:53PM P4 • ( incorporated into this agreement as an .integral.part. 2. Mayer o£. further hearings. Respondents further agree that they hereby waive all further hearings, proceedings, and rights of appeal in this matter upon Petitioners payment of the remaining damages. 3. Parme t to Respondents. Petitioner agrees that it will disperse the remaining damages to Respondents, any mortgagee of record, the County of Dakota and LeVander, 'eillen & Miller, P.A., ` -as their interests may appear, upon execution of this Stipulation. Upon payment, Petitioner is authorized to file a • final certificate for the above-described parcel. 4. isaseinent and Roadway,. Petitioner agrees to provide Respondents with a nonexclusive easement for street, roadway and utility purposes over, under and across the North 30 feet of the West 350 feet of the South half (61/4) of the Northeast Quarter (NE k) of Section Thirty-Two (32), Township One Hundred 'fourteen • (114) , Range Nineteen (10) , Dakota Cspunty, Minnesota. Further, - Petitioner agrees to provide'for•an'access over the above- . easement. area to the remainder of Respondents' - - preiperty. petitioner agrees to maintain this ateess in a same or • • similar condition as exists at the time of this Agreement. Based upon current assessment policy if the easement area ware improved with street, curb, gutter, sanitary sewer, water and any other utilities, the City would be responsible for any asssess Bents. The parties agree that this policy may change- in the. future. • • 3 •i •r • F • 31 t=::::: .:: `. :...:: w!'• :Sri :'•.1: t `:y. .it.::1;: max'.• •t∎At``..04:2?�ra..f Cyr.2:i:: ��:::^•:e:.1.. ^t .•_'•:c;i: ••,, •r•: -t• •ti.. .: : :.f. A :t..•+,tO.i«;:s,�• �;r:. *•-∎ ,•. a;;:t`�. • i:e1r. •;111:::;:^1:,.. 'z'.\•*-: •:::.11;"-:.•;. ...W.:t_.. :%.K,;:.:;,..,:1y i': i..1-p.:-.; . t:.°..S 1 • 952-432-6238 p.6 • Mar 21 13 06:41a Bart Winkler FROM :Larry Rather FAX N1 :651 4S0 8375 Mar, 20 2613 01:53PM P5 • .Y.r ( S. Niece laneoasa Provisions. - a. 8reaaoi,. In the event either party breaches or defaults in its performance hereunder, the other party shall have the right to pursue all its remedies'under this agreement or at law or both, including, without limitation, the right to -a decree for specific performance. b. 13 ,ndino B -e*t. • This agreement shall be binding upon • and inure to the benefit of the parties hereto and"their . respective successors and assigns. . C. • Survival of Earrenties. Ail' the cov'enante, •agree en-ts, representations, and warranties made by the parties in this agreement or in any document instrument delivered by the parties 't pux'etiarit to this agreementt shall survive this agreement, d. W,a t ver• Modifiction. The failure by either party to • enforce its rights hereunder shall not constitute a waiver of said party's right to demand future performance of the provisions s hereof. No modification or extension of..this agreement shall be f • 1 binding unless in writing and signed by the parties. 1 e. Time cf Essence. Tirlaiy performance is 'essential in • . I - - • this agreement and each of its provisions. I f. 'Governing i.aw. This agreement shall be governed by and 4 construed in accordance with the laws of the State of Minnesota. . g. Section Headings. The sseotioxs headings used: in this agreement are for cgnvenienos of reference only and shall- not be deemed to vary the content of this agreement or its covenants, agreements, representations, end warranties or limit the • • .4 4 j. - i wi ?0; -- t. •• a .. I .yI 'r.•n e% • 4 ``•` • :7� o •O•'" • I• • ... t •� F•s.:'T.c...•S. - . .! ... ••-.l '• ...:.s�iti: l «. .:t Y::i:� `• •� ._;'•••..• . 5.•: v- 4 .•ft ;ti'1 .a 5,:�� .:1 of `41-:_�;.... <T'.' :a:.f.. :"af a•ti.�:_:`•.. �1y�•j!.:�.:'�iy:..�.�'.`.�; .•952-432-6238 p.7 Mar 21 13 06:41a Bart Winkler FROM :Larry Rather FAX NO. :651 460 8375 Mar. 20 2013 61:53PM P6 - 4 • provisions or scope of any section. h. Iuseguent Documentation. Each of the parties agrees • . to execute and deliver to the other party, as requested, any additional documents and/or instruments that may reasonably be determined as necessary to coney/Mate the transaction. LeVANDSR, C.1 .,+ N & MILLERI- P.A. GRANSIS 6 GRANNIS, P.A. r Da ie1 a --eson, #6142 David L. a Amara, #36808 633 Soul: .ncord 412 Southv =W Blvd., #l00 Suite 40- South St. Paul, MN 55075 South St. Paul, RN 55075 (612) 455-1461 (612) 451-1831 Attorneys for petitioner Attorneys for Respondents City o Farmington i - . • a I • .y • 5 1i al.. vi 4 • : :� 1. .• Wi — COPY DEL'D 21 1 1629 1 e cs"2.M- oiatra WA Minnesota Uniform Conveyancing Blanks(6/197) I 1 Individual{s)to Corporation,Partnership -- -- orLimited Liability Company b g Q O G No delinquent taxes and transfer cote ed; Certificate i' A E ! '+^ p . of Real Estate Value ( )filed not require( c rte„ p ..... 8 . Cettit ;of' •113st.te V���', 4 G'iv ail hi/,,,,„ „ if / / / (r 1V 1 J i f County Auditor 'd. i 'l ; I m by Deputy p $ • O o I $ DEED TAX DUE:S.1.65 i . ,r I 1 EI NG IAI(.OPENING! Date: Alif' 2 `C ,2003 ' !„ __ A k.,.LIE e FOR VALUABLE CONSIDERATION,Lawrence J.Rother,single, {mental status) Grantor,hereby conveys and warrants to WINKLER LAND CS LLC• Grantee,a limited_liability company under the laws of Minnesota real property in Dakota County,Minnesota,described as follows: • The South One-Half(S 1/2)of the Northeast Quarter(NE 1/4)of Section Thirty-two(32),Township One Hundred Fourteen(114),Range Nineteen(19),Dakota County,Minnesota;excepting therefrom the West Three Hundred Fifty (W 350)feet thereof. *See attached addendum. Total consideration for this transfer of real property is less than $250.00. together with all hereditaments and appurtenances belonging thereto,subject to the following exceptions: its,easements and restrictions of record,ifany. Check box if applicable: Ch The Seller certifies that the seller does not know of any wells on the described real property. A well disclosure certificate accompanies this document. 1 am familiar with the property described in this instrument and I certify that the status and number of was on the described real property have not changed since the last previously filed well disclosure certificate. RECEIVED �,,,��.n,.,,r,,v°Cd" ` _� , ./ - I 114," RDth Affix Deed Tax Stamp Here JUN 0 2 2003 STATE OF MINNESOTA DA TA Col/BY - COUNTX OF DO ko rig This instrument was acknowledged before me on /h4 I, 2 9 ,2003 oafs by Lawrence l_Rot_ltc;-single,,Granter I TOTARIALSTAMP ORDEAL(OR OTHER TULEDREmma 71?w (, ,NtiMti SIONATUREOPNOrARYPU3LIC OR OTNRROPPICML t' fr.,v,, 1't. - e `i 7 t y ; Check here if part or all of the land is Registered(Tomas)g -%, ''� Tax Statements Bulb,real proputydasedbed in this iwdumentshevtd • be sent to(include tome and at:ms ofOranteo): 'tats IIMIRIMENT WAR DRATTED RV(RAMEARDADDRILSap Winkler Land Co,LLC , %1'`n do Bart Winkler A'�1.BS Severson,Sheldon,Dougherty&Molenda,P.A. 7300 West 147th Sae"" �lh,,;"`':�i,h�ATitOi➢ �� 7300 West 147th Street,Suite 600 Apple Valley,Mismesdb1311+113 t Y 079419'3 Apple Valley,MN 55124 (952)432-3136 (MDK:2682-17275) YIAReNa UNAUTHORIZED COPYINO or TNLSFORM PROHIBITED. 34 Form No.3•M —Pogo 2 *This Deed is given to correct the name of the Grantee and the legal description of the Property in that certain Warranty Deed, which document was recorded as Document No. 1975637, wherein Lawrence J ltothex, single, Grantor, conveyed and warranted to Winkler Land Company,LLC,Grantee,a limited liability corporation,under the laws of Minnesota,real property In Dakota County,Minnesota,described as follows: The South One-Half(S I12)of the Northeast Quarter(N8 1/4)of Section Thirty two(32),Township One Hundred Fourteen (114),Range Nineteen(19)Dakota County,Minnesota',excepting therefrom the West Thee Hundred Fifty(W 350)feet thereof. V • • • • 35 .4110/4.-, City of Farmington A 430 Third Street �� l�arnaingtou�Minnesota 651,2Rf1.6ROQ•Fax fiS1.2RQ,6199 wwwvctiJanmingn+m.mn.as TO: Mayor, Council and City Administrator FROM: Robin Hanson, Finance Director SUBJECT: Accept Donation—Farmington Fire Relief Association DATE: May 6,2013 INTRODUCTION: The Farmington Fire Relief Association recently donated$5,000 to the City of Farmington. DISCUSSION: The gift is designated for future fire equipment purchases. So,the funds have been recorded in the Fire Capital Projects account. ACTION REQUESTED: Accept donation from the Farmington Fire Relief Association to be restricted for future fire equipment purchases. 36 RESOLUTION NO. R26-13 ACCEPT$5,000 DONATION FROM THE FARMINGTON FIRE 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 6th day of May, 2013 at 7:00 p.m. Members Present: Larson, Bartholomay, Bonar, Donnelly, Fogarty Members Absent: None Member Fogarty introduced and Member Bonar seconded the following: WHEREAS, a donation of$5,000 was received from the Farmington Fire Relief Association to be used for future fire equipment purchases; and, WHEREAS, it is required by State Statute that such donations be formally accepted; and, WHEREAS, it is in the best interest of the City to accept this donation. NOW,THEREFORE,BE IT RESOLVED that the City of Farmington hereby accepts with gratitude the generous donation totaling $5,000 from the Farmington Fire Relief Association for future fire equipment purchases. This resolution adopted by recorded vote of the Farmington City Council in open session on the 6th day of May 2013. Mayor Attested to the "7-./h day of May 2013. • Administr ot� SEAL � City of Farmington 430 Third Street, Farmington, MN 55024 (651) 280-6800 Fax(651) 280-6899 www.ci.farmington.mn.us p TO: Mayor, Councilmembers, and City Administrator FROM: Brenda Wendlandt, Human Resources Director SUBJECT: Appointment Recommendation—Finance Department DATE: May 6, 2013 INTRODUCTION The recruitment and selection process for the appointment of the part-time Administrative Support Technician to fill the vacant front-desk position has been completed. DISCUSSION After a thorough review by the Finance Director and the Human Resources Office, a contingent offer of employment has been made to Ms. Cindy McMillen, subject to ratification by the City Council. Ms. McMillen currently works part time at the Rambling River Center and meets the qualifications for this position. Ms. McMillen's employment will be full-time and her time will be split between the Rambling River Center and City Hall. BUDGET IMPACT Ms. McMillen's hourly wage is $17.55 per hour and she will continue at that rate for both positions. This wage is within the salary range for this position(Salary Range: $16.60- $19.07). Funding for this position is authorized in the 2013 budget. ACTION REQUESTED Approve the appointment of Cindy McMillen as Administrative Support Technician effective on May 7, 2013. Respectfully submitted, Brenda Wendlandt, SPHR Human Resources Director cc: Personnel file 38 o !�r City of Farmington yf 430 Third Street i ' Farmington,Minnesota \4 651.280.6800.Fax CSI:?rli0.fifi99 ‘N:q.A Ilid.d �. w►utivci.Yarmmgtm.mn_us TO: Mayor, Council and City Administrator FROM: Tim Pietsch, Fire Chief SUBJECT: Approve the sale of 1986 Ford L8000 Rescue Truck DATE: May 6, 2013. INTRODUCTION: The Farmington Fire Department requests Council approval to sell the retired 1986 Ford L8000 Rescue Truck. DISCUSSION: The past six weeks, the 1986 Ford L8000 Rescue Truck had been out for sealed bid. We advertised in several fire service web pages and the Farmington Independent.Two bids were received, with the top bid from Brook Park Fire Department for$7,125.00. (See attached bid sheet). ACTION REQUESTED: Authorize the sale of the 1986 Rescue Truck to Brook Park Fire Department for$7,125.00. Respectfully submitted, Tim Pietsch Fire Chief 39 Rescue 2 Bids Received May 1,2013 Company Amount Brook Park Fire Department $7,125 ABBE& Svoboda, Inc. $6,000 40 0I m < ,� OI O o a O 0 0 0 O O ru No 0 CO ° 8 0 40 8 0 0 o° °o °o 0 o °o °o 0 o 0 °o u 0 0 0 O O O 0 O 0 < e- 0 0 M o O O O b o O O o o O 0 0 O 8 LU a co N co 0 UV Z 5 M o o a o 0 0 CO LU w re ai ¢ F F F z z Cl) z 0 g w w 0 0 W' aX z CO CO CA o z o `o 0 C a w z 8 O U W 2 TL 5 5 O u. 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Y Y Y Ya O O O Q Q Q F- 0: 0: a: a' ❑ ❑ ❑ ❑ ❑ K tx g� • • • r 0 0 0 K K ,_ ,_ F F F z z Z a a a Qa . w N 0 0 0 p a co LU co co 0 N N 0 0 ai N y ,_ 5 co• U U U a a a LT li CO CO CO CO CO O cn J z w O a > dt o W o Ix Co Q O ❑ J Q m U Y O U'O J ID J M > a 4104 City of Farmington 430 Third Street , -411-- 1 - Farmington,Minnesota a 651.2R0.6R00•Fax 651.280.6899 •A Me ww►w.ci.larenmb ntmn TO: Mayor, Councilmembers and City Administrator FROM: Todd Reiten, Director of Municipal Services SUBJECT: Approve Recycling Contract Extension DATE: May 6,2013 INTRODUCTION The City's recycling contract with Dick's Sanitation, Inc./Lakeville Sanitary, Inc. (DSI/LSI) expires at the end of 2013.At the February 19, 2013, Council meeting DSI/LSI requested an opportunity to negotiate an extension to their current contract. Council directed staff to move forward with negotiating an extension of this contract. DISCUSSION The existing agreement with DSI has been renegotiated with the following changes for Council's consideration: • A rate decrease in 2014 for recycling services: The rate would be reduced to$2.65 per home per month with annual Consumer Price Index increases of 4%. The current rate for 2013 is$3.93 per home per month. • Compressed Natural Gas(CNG) truck dedicated to Farmington recycling routes: Eliminating the fuel surcharge. • Incidental Yard Waste Service Option: Providing residents who do not subscribe to the seasonal yard waste program a"sticker program"which will allow residents to purchase stickers for$3.00 each(one sticker per bag) and call ahead to schedule collection on their regular route day. • Cardboard Recycling Services: DSI will provide 10—8 yard dumpsters for cardboard and paper at sites designated by the City, collected weekly at no cost to the City. • Recycling Revenues: Due to the unpredictable market conditions of recycling values/charges, DSI is proposing to retain any revenues but also incur all commodity charges associated with recycling market values. • A six-year agreement: DSI/LSI is requesting a six-year agreement. 73 Approve Recycling Contract Extension May 6,2013 Page 2 of 2 BUDGET IMPACT The favorable terms will allow the Solid Waste Division to maintain current rates without reducing service in addition to resuming the recommended vehicle replacement plan. ACTION REQUESTED Approve the attached 2014-2019 Recycling Contract Extension Agreement. Respectfully submitted, Todd Reiten Director of Municipal Services 74 2014-2019 RECYCLING CONTRACT EXTENSION AGREEMENT THIS AGREEMENT is made this day of , 2013,by and between Dick's Sanitation,Inc. ("DSI") and the City of Farmington, a Minnesota municipal corporation(the"City") (collectively referred to as the"Parties"). WHEREAS, DSI has provided recycling services to the City since 1995; and, WHEREAS, the City is interested in extending the current recycling contract with DSI through 2019 and DSI is interested in providing its recycling services to the City through 2019;and, WHEREAS, the Parties are agreeable to the terms that presently exist in the 2009-2013 Agreement for Curbside Recycling and Clean Up Day Services with the exceptions that are identified within this Agreement;and, WHEREAS, based on the favorable recycling service that DSI has provided since 1995 to the City, it appears to be in the best interest of the City and its residents to allow DSI to provide recycling services through 2019. NOW,THEREFORE, in consideration of the promises contained herein,the Parties hereby agree as follows: SECTION 1. TERMS OF AGREEMENT. 1. The Agreement shall apply only to the collection and removal of residential and commercial/industrial recycling material, seasonal yard waste program, and the annual Curbside Clean-Up Day Program. Proposed residential and commercial rates are listed on Attachment A. 2. This Agreement shall run for a period of six years beginning on January 1, 2014 and shall end on 12:00 Midnight on December 31, 2019. 3. DSI/LSI will utilize a compressed natural gas(CNG)truck and will not charge a fuel surcharge. SECTION 2. DSI OBLIGATIONS. 1. DSI will provide each resident with a 65 gallon cart for one-sort recycling(labeled accordingly). After the first year of service, if an exchange of a larger(95 gallon) or smaller(45 gallon)cart is requested there may be an exchange fee of$15 billed directly to the resident. Each resident will be serviced every other week on their normal day of collection. City holidays will be serviced in the same manner as City provided solid waste collection. 2. DSI will provide educational materials with a calendar schedule for each resident, and will also work with the City of Farmington to incorporate the every other week collection schedule into City promotional materials. Page 1 of 3 75 3. DSI will collect the following materials deposited in a single container from residential customers on scheduled collection days: a. Office paper b. Junk mail c. Phone books d. Boxboard e. Newspapers f. Magazines g. Clear, brown&green glass(jars and bottles) h. Aluminum, steel&tin cans i. Post-consumer plastic containers numbered 1-7: Food and Beverage containers(of any color including white and clear)which may include: beverage containers, food containers such as: cottage cheese, yogurt and margarine tubs. Cleaning, detergent and automotive products(please remove all liquids). j. Cartons: Milk cartons,juice cartons, soup cartons,etc. k. Corrugated cardboard inside the container or in 3'x3' bundles outside of container 4. DSI will retain any revenues generated by recycling materials and will also incur any commodity charges for recycling material processing, depending on market values. 5. DSI is proposing the following services and rates for the Curbside Clean Up Day Program: a) Rates for the curbside collection of acceptable MSW and acceptable bulk items over the five Saturdays would be as listed on Attachment A. b) Dates for the Curbside Clean Up Day Program will generally fall on the five Saturdays prior to Memorial Day:Dates for 2014 will be April 19, 26 and May 3, 10, and 17. c) Apartment roll-offs will be charged at the per pull rate plus disposal costs on Attachment A. 6. Seasonal yard waste rates are outlined on Attachment A. An incidental service will be offered at a per bag/bundle price.Any new or replacement yard waste containers will be 65 gallons and the service will include up to 10 additional compostable paper bags per week. 7. DSI will provide to the City proof of proper insurance coverage as identified in the previous year agreement, adjusted as necessary to provide at least the statutory maximum liability amounts specified in Minnesota Statutes Section 466.04, Subd. 1 (6), (7) and(8). SECTION 3. TERMINATION OF AGREEMENT. In the event that either Party fails to perform and carry out any of the terms or conditions of this Agreement strictly in accordance with the provisions hereof or for any reason is unable to properly conduct its business,this Agreement may be terminated by either Party giving written notice of 30 days to the other Party. SECTION 4., OTHER TERMINATION. NOTWITHSTANDING any other provision, if any local law, rule, regulation, or order prohibits the activities in this Agreement,then this Agreement shall be immediately terminated with both Parties owing no further compensation to each other. SECTION 5. ENTIRE AGREEMENT. Page 2 of 3 76 The current,underlying Agreement 2009-2013 (comprised of the original 2002-2006 agreement as extended by 2007, 2008 and 2009-2013 Agreements) continues in effect except as provided in the 2014-2019 extension agreement, and that the four earlier documents together with this extension comprise the"entire agreement"of the Parties. DICK'S SANITATION,INC. CITY OF FARMINGTON,a Minnesota Municipal Corporation BY: BY: President Todd Larson, Mayor AND David McKnight, City Administrator STATE OF MINNESOTA ) ( ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of ,2013, by the President of Dick's Sanitation, Inc., a Minnesota corporation, on its behalf. Notary Public STATE OF MINNESOTA ) ( ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2013, by Todd Larson and by David McKnight,respectively the Mayor and City Administrator of the City of Farmington, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public Page 3 of 3 77 Attachment A City of Farmington Renegotiated rates for new contract a) Single Family Dwellings&Townhomes One-sort 2014 $ 2.65 /month/unit 2015 $ 2.76 /month/unit 2016 $ 2.87 /month/unit 2017 $ 2.98 /month/unit 2018 $ 3.10 /month/unit 2019 $ 3.22 /month/unit c) Multi-family,commercial,Industrial&Institutional Customers-all based on a per pick-up rate 2014- 2015 2016- 2017 1 I 2018-2019 Comm-Paper/Cdbd 1st cont Add't cont 1st cont Add't cont. 1st cont Add't cont. One-Sort Cart $ 8.15 $ 4.40 $ 8.35 $ 4.60 $ 8.60 $ 4.85 Per P/U** 2 cubic yard $ 8.95 $ 5.20 $ 9.15 $ 5.40 $ 9.40 $ 5.65 Per P/U** 4 cubic yard $ 9.50 $ 5.85 $ 9.70 $ 6.05 $ 9.95 $ 6.30 Per P/U** 6 cubic yard $ 10.60 $ 7.90 $ 10.80 $ 8.10 $ 11.05 $ 8.35 Per P/U** 8 cubic yard $ 12.85 $ 8.80 $ 13.05 $ 9.00 $ 13.30 $ 9.25 Per P/U** **Per P/U=Based on 4.33 weeks per month X the quantity X frequency d) Residential Bulk Collection Rates are as follows: 2014 2015 2016 2017 2018 2019 Less than 3 yds RL $ 30.00 $ 30.00 $ 34.00 $ 34.00 $ 36.50 $ 36.50 Per Cubic Yard 3yd Temp Container $ 146.23 $ 146.23 $ 152.08 $ 152.08 $ 158.16 $ 158.16 Per Dump 4yd Temp Container $ 163.11 $ 163.11 $ 169.63 $ 169.63 $ 176.42 $ 176.42 Per Dump 6yd Temp Container $ 191.23 $ 191.23 $ 198.88 $ 198.88 $ 206.83 $ 206.83 Per Dump ***Above rates that pertain to trash services do not include taxes and fuel adjustment fees. e) Seasonal yard waste services shall be billed directly to each resident: 2nd Cart 2014 $ 85.00 /Year $ 15.00 /Year 2015 $ 85.00 /Year $ 15.00 /Year 2016 $ 87.00 /Year $ 16.00 /Year 2017 $ 87.00 /Year $ 16.00 /Year 2018 $ 90.00 Near $ 18.00 Near 2019 $ 90.00 Near $ 18.00 Near Incidental(with sticker) 2014-2019 $ 3.00 /bag/bundle CURBSIDE CLEAN-UP DAYS: 2014 2015 2016 2017 2018 2019 Trash collection(labor) per hour per truck $ 145.00 $ 147.90 $ 150.86 $ 153.88 $ 156.95 $ 160.09 Trash collection(disposal)+ per ton $ 62.00 $ 62.00 $ 64.00 $ 64.00 $ 67.80 $ 67.80 Trash collection(Apts)roll-of per pull+disposal $ 200.00 $ 200.00 $ 210.00 $ 210.00 $ 220.00 $ 220.00 78 !`(all k's Sanitation Inc: April 9th,2013 Lena Larson City of Farmington 19650 Municipal Drive Farmington,MN 55024 Dear Lena Larson,Mayor and Members of the City Council, Dick's Sanitation,Inc.appreciates serving your community with quality yardwaste and recycling services over the past ten years. We take pride in serving your community. Based on the City Council meeting—DSI is providing the following proposal as a part of the renegotiate our contract with the City of Farmington. Dick's Sanitation,Inc.is proposing to do the following as a part of our new agreement: Request an extension of a six(6)years agreement. 1. DSI is requesting to offer a rate decrease in 2014 for recycling services provided to the City of Farmington. This rate would reduce to $2.65 per home per month with annual CPI increases of 4%.See additional rates attached for other services. 2. Maintain all other service parameters including: Yard waste collection,bulk item pick-up and Spring Clean-up day. 3. Implement the usage of alternative fuel(compressed natural gas CNG)for our truck that serves Farmington. This would then eliminate the Fuel Adjustment parameters we have attached to our current contract. 4. Yard waste services(incidental service)option—Provide residents who don't have the seasonal yard waste service the option to call in for on-call pick-up. We would recommend a"yard waste"sticker program where residents would purchase stickers at a designated location and then call ahead to have their bags or bundles picked up on their day of pick-up. Stickers would cost: $3.00 per sticker= per bag or bundle rate. 5. Recycling revenues—DSI would track and report tonnage to the city on a monthly basis. However,do to the unpredictable market conditions of recycling values/charges—DSI is proposing to retain all revenues and incur all charges associated with recycling market values. 6. Cardboard recycling services—DSI will provide 10- 8 Yd dumpsters for cardboard and paper picked up one time per week for no cost to the City of Farmington at sites designated by the City. Dick's Sanitation,Inc.looks forward to providing quality service to your community for another six years. Thank you for considering our proposal. Sincerely, David -l&niack David Domack Executive Account and Public Relations Manager Dick's Sanitation,Inc. david@dickssan itation.com www.dickssanitation.com 952-469-9870 Dick's Sanitation Inc. 8984 215th Street West Lakeville, MN 55044 Phone: 952-469-2239 Fax:952-469-1146 WWW.dickssanitation.com 79 400 74, City of Farmington 430 Third Street Farmington,Minnesota 651.463.7111 •Fax 651,463.2591 wwa.ci.tarmingum.mn.uas TO: Mayor,Councilmembers and City Administrator FROM: Randy Distad,Parks and Recreation Director SUBJECT: Approve 2013 Arena Capital Project Agreements DATE: May 6,2013 INTRODUCTION A request is being made to spend the remaining$111,744.65 from the 2010 Arena Improvement Project. DISCUSSION Previously staff had discussed with the City Council at its March 11,2013,workshop a request to spend the remaining$111,744.65 from the 2010 Arena Improvement Project. During the work session a number of capital improvement projects were discussed. City Council provided direction to staff to move forward with acquiring proposals from contractors to complete the following three projects: • replacement of the heating systems for the bleachers on the west side of the Arena • replacement of the furnace that heats team rooms five and six • replacement of the dehumidification system Attached are Agreements with contractors associated with the three projects. Additionally, each of the proposals that were submitted by the contractors and are being recommended for approval by the City Council are attached as Exhibit A.A tabulation form marked as Exhibit B shows quotes for all of the proposals received. The work associated with replacing the bleacher heating system and the furnace requires only one contractor to complete. As you can see however,because there is more work involved with replacing the dehumidification system,staff has separated it into the three following projects: • Purchase of the dessicant dehumidification unit • Installation of the gas piping and ductwork for the dessicant dehumidification unit • Installation of the electrical service for the dessicant dehumidification unit Unfortunately after completing the solicitation of proposals to complete all work associated with these three capital projects the total proposed cost is$119,181.37,which exceeds by$7,436.72 the$111,744.65 that remained from the 2010 Arena Improvement Project. At the City Council's March 11,2013 work session information was shared about estimated costs for the projects. However after a closer review of the project cost estimates and a solicitation of project proposals,the total project cost estimate has increased due to the following combination of reasons: • the dehumidification unit now includes an electrical installation cost • the low dehumidification unit proposal now includes sales tax • proposals received for the bleacher heating system and team room 5 and 6 HVAC system projects were lower than what was estimated 80 In order to cover the shortage of funding for these projects,staff has made the Farmington Youth Hockey Association(FYHA)aware the City is planning on using FYHA contributions made in 2012($5,000)and to be made in 2013 ($5,000 has been invoiced)to cover the shortage of funding for these projects.This would result in the total contribution balance being lowered from$10,000 to$2,563.28.Per the agreement that was approved with FYHA in 2012,use of these funds is allowed for future Arena capital projects. The 10 year agreement with FYHA stipulates that each year a$10,000 contribution will be made by FYHA to the City with$5,000 going to cover annual Arena operation and maintenance and $5,000 being set aside for future Arena capital projects. ACTION REQUESTED The City Council is being requested to approve the attached agreements to complete the Arena's capital projects in 2013 and to use the remaining$111,744.65 from the 2010 Arena Improvement Project and $7,436.72 of FYHA's Arena contribution balance of$10,000 to fund the various project costs. Respectfully Submitted, Randy Distad Parks and Recreation Director 81 AGREEMENT AGREEMENT made this 6 44 day of , 2013, between the CITY OF FARMINGTON,a Minnesota municipal corporaia("City"),and METROPOLITAN MECHANICAL CONTRACTORS,INC.,a Minnesota corporation("Contractor"). IN CONSIDERATION OF THE MUTUAL UNDERTAKINGS HEREIN CONTAINED,l'HE PARTIES 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. Proposal dated March 28,2013,attached as Exhibit"A." In the event of 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"B"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. OBLIGATIONS OF THE CITY. The City shall pay the Contractor in accordance with the bid. 4. 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. 5. 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. 6. TIME OF PERFORMANCE. The Contractor shall complete its obligations on or after April 16,2013 and before September 1,2013. 7. PAYMENT. a. When the obligations of the Contractor have been fulfilled,inspected,and accepted, the City will pay the Contractor. Such payment shall be made not later than thirty(30) days after completion,certification thereof,and invoicing by the Contractor. b. No final payment shall be made under this Contract until Contractor has satisfactorily established compliance with the provisions of Minn. Stat. Section 290.92. A certificate of the commissioner shall satisfy this requirement with respect to the Contractor or any subcontractor. 8. EXTRA SERVICES. No claim will be honored for compensation for extra services or beyond the scope of this Agreement or the not-to-exceed price for the services identified in the proposal without written submittal by the Contractor, and approval of an amendment by the City, with specific estimates of type, time, and maximum costs, prior to commencement of the work. 9. PROMPT PAYMENT TO SUBCONTRACTORS. Pursuant to Minnesota Statute 471.25, Subdivision 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 one and one-half percent(11/2%)per month or any part of a month to subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest 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. A subcontractor who prevails in a civil action to collect interest penalties from the Contractor shall be awarded its costs and disbursements, including attorney's fees,incurred in bringing the action. 10. WORKER'S COMPENSATION. If Contractor does public work,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. 11. 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 by endorsement: 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 Products and Completed Operations Insurance shall be maintained for a minimum period of three (3)years after final payment and Contractor shall continue to provide evidence of such coverage to 169799 2 83 City on an annual basis during the aforementioned period;or if any reason Contractor's work ceases before final payment,for a minimum period of three(3)years from the date Contractor ceases work. Property Damage Liability Insurance shall include coverage for the following hazards: X (Explosion) C (Collapse) U (Underground) Contractual Liability(identifying the contract): Bodily Injury: $2,000,000 each occurrence Property Damage: $2,000,000 each occurrence $2,000,000 aggregate Personal Injury,with Employment Exclusion deleted: $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 12. MINNESOTA GOVERNMENT DATA PRACTICES ACT. Contractor must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to (1) all data provided by the City pursuant to this Agreement, and (2) all data, created, collected, received, stored, used, maintained, or disseminated by Contractor pursuant to this Agreement. Contractor is subject to all the provisions of the Minnesota Government Data Practices Act,including but not limited to the civil remedies of Minnesota Statutes Section 13.08,as if it were a government entity. In the event Contractor receives a request to release data, Contractor must immediately notify City. City will give Contractor instructions concerning the release of the data to the requesting party before the data is released. Contractor agrees to defend, indemnify, and hold City, its officials, officers, agents, employees, and volunteers harmless from any claims resulting from Contractor's officers', agents', city's, partners', employees', volunteers', assignees' or subcontractors'unlawful disclosure and/or use of protected data. The terms of this paragraph shall survive the cancellation or termination of this Agreement. 13. RECORDS. Contractor shall maintain complete and accurate records of expenses involved in the performance of services. 14. WARRANTY. The Contractor guarantees that all new equipment warranties as specified within the bid 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 169799 3 84 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. The Contractor further warrants to the City that all goods and services furnished under the Contract will be in conformance with Contract Documents and that the goods are of merchantable quality and are fit for the use for which they are sold. This warranty is in addition to any manufacturer's standard warranty y,and any warranty provided by law. 15. NONDISCRIMINATION. All Contractors and subcontractors employed shall comply with all applicable provisions of all federal, state and municipal laws which prohibit discrimination in employment to members of a protected class and all rules and regulations, promulgated and adopted pursuant thereto. The Contractor will include a similar provision in all subcontracts entered into for the performance of this contract. 16. INDEMNITY. The Contractor agrees to defend,hold harmless,and indemnify the City,its officers,agents, and employees,for and against any and all claims,demands, actions,or causes of action, of whatever nature or character, arising from the Consultant's performance of work or services provided for herein. The Contractor shall take all reasonable precautions for the safety of all employees on the site and shall provide reasonable protection to prevent damage or loss to the property on the site or properties adjacent thereto and to work, materials and equipment under the Contractor's control. 17. 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. 18. GOVERNING LAW. The laws of the State of Minnesota esota govern the interpretation of this Contract. 19. 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. 20. ENTIRE AGREEMENT. This Contract represents the entire agreement of the parties and is a final,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. 21. TERMINATION. This Agreement may be terminated by the City for any reason or for convenience upon written notice to the Contractor. In the event of termination, the City shall be obligated to the Contractor for payment of amounts due and owing for materials provided or for services performed or furnished to the date and time of termination. 169799 4 85 Dated: 7 , 2013. CITY OF FARMINGTON By: •►r Todd Larson,Mayor By: G« F1II David McKni tkcil Administrator 169799 5 Dated: 4-1 f 27 ,2013 CONTRACTOR METROPOLITAN MECHANICAL CONTRACTORS,INC, By: Its: Cali, ry, `' f, Kl J-erY2i0 169799 6 E4 V 1 4 IN 'n' i t :7 PROPOSAL PROPOSAL SllEmTITED To; - PBONE , DATE City of Farmington 651-280-6902 March 28,2013 STREET JOE NAME 430 3rd St. Ice Arena CITY,STATE AND ZIP CODE JOE LOCATION Farmington,MN 55024 114 W.Spruce ATTENTIONS A5C.JOS IIVrORMATION Jeremy Fire H&V unit east side We propose the following: Remove the existing 158,000 btuh heating and ventilating unit at ground level,east side and replace It with a 7 h ton combination HVAC unit with an integrated economizer. Tie in will be through the existing wall penetrations for supply and return air. ADD ALTERNATE: Add true dehumidification and dehumidification control to this unit. Ipoluded in this proposal: • Labor and Materials to complete the work listed above. • Permit • Electrical • New cement pad • Miscellaneous materials. • 1-year labor and material warranty. • Freight and tax. • Start up and check out. • Clean up and remove MMC debris fiotn the jobsite. Specifically excluded: • Overtime labor • Patching and painting. • Asbestos testing and abatement. • . WE PROPOSE hereby to furnish material and labor-complete in accordance with above specifications,for the sum of: TrvenO-three Thousand Seven Hundred Dollars(023,700.00). ADD ALTERNATE: ADD One Thousand Nine Hundred Dollars ADD(1,900.00) accepted All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. My alteration or deviation from above specifications involving extra costs will be executed only upon written orders,mid 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 filly covered by Workmencs Compensation Insurance. Jam s M. a evich Note:proposal may be withdrawn by as if not accepted within_31 ,dap. Sr.Project Manager,Service ACCEPTANCE OF PROPOSAL-The above prices,specifications and conditions are satisfactoryend hereby accepted.You are authorized to do the work an specified. Payment will be made as outlined above. Date of Acceptance 77'-], .l ,3 Signature Title /�� o P' ......•..,..�.. METROPOLITAN MECHANICA�RACTORS,INC. 7450 Plying Cloud Drive•Eden Prairie,Minnesota 55344•Phone:(952)941-7010•Pax:(952)941-9118•www.metromech.com AGREEMENT AGREEMENT made this 4 714 day of , 2013, between the CITY OF FARMINGTON,a Minnesota municipal corpora ("City"),and 1VIIKE KASTNER, d/b/a MK MECRANICAL SERVICE, 23996 Olinda Trail North, Scaudia, MIST 55073 ("Contractor"). • IN CONSIDERATION OF THE MUTUAL UNDERTAKINGS HEREIN CONTAINED,THE PARTIES 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. Option #1 of Contractor Proposal dated March 26th, 2013, attached as Exhibit"A." In the event of 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"B"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. OBLIGATIONS OF THE CITY. The City shall pay the Contractor in accordance with the bid. 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. • S. 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. 6, TIME OF PERFORMANCE, The Contractor shall complete its obligations on or after April 16,2013 and before September 1,2013. 7. PAYMENT. a. When the obligations of the Contractor have been fulfilled,inspected,and accepted, the City will pay the Contractor. Such payment shall be made not later than thirty (30) days after completion,certification thereof,and invoicing by the Contractor. b. No final payment shall be made under this Contract until Contractor has satisfactorily established compliance with the provisions of Minn. Stat. Section 290.92. A certificate of the commissioner shall satisfy this requirement with respect to the Contractor or any subcontractor. 8. EXTRA SERVICES. No claim will be honored for compensation for extra services or beyond the scope of this Agreement or the not-to-exceed price for the services identified in the proposal without written submittal by the Contractor, and approval of an amendment by the City, with specific estimates of type, time, and maximum costs, prior to commencement of the work. 9. PROMPT PAYMENT TO SUBCONTRACTORS. Pursuant to Minnesota Statute 471.25, Subdivision 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 one and one-half percent(1%%)per month or any part of a month to subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest 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. A subcontractor who prevails in a civil action to collect interest penalties from the Contractor shall be awarded its costs and disbursements, including attorney's fees,incurred in bringing the action. 10. WORKER'S COMPENSATION. If Contractor does public work,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. 11. 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 by endorsement: 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 Products and Completed Operations Insurance shall be maintained for a minimum period of three (3)years after final payment and Contractor shall continue to provide evidence of such coverage to 1697815 2 91 City on an annual basis during the aforementioned period;or if any reason Contractor's work ceases before final payment,for a minimum period of three(3)years from the date Contractor ceases work. Property Damage Liability Insurance shall include coverage for the following hazards: X (Explosion) C (Collapse) U (Underground) Contractual Liability(identifying the contract): Bodily Injury: $2,000,000 each occurrence Property Damage: $2,000,000 each occurrence $2,000,000 aggregate Personal Injury,with Employment Exclusion deleted: $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 12. MINNESOTA GOVERNMENT DATA PRACTICES ACT. Contractor must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to (1) all data provided by the City pursuant to this Agreement, and (2) all data, created, collected, received, stored, used, maintained, or disseminated by Contractor pursuant to this Agreement. Contractor is subject to all the provisions of the Minnesota Government Data Practices Act,including but not limited to the civil remedies of Minnesota Statutes Section 13.08,as if it were a government entity. In the event Contractor receives a request to release data, Contractor must immediately notify City. City will give Contractor instructions concerning the release of the data to the requesting party before the data is released. Contractor agrees to defend, indemnify, and hold City, its officials, officers, agents, employees, and volunteers harmless from any claims resulting from Contractor's officers', agents', city's, partners', employees', volunteers', assignees' or subcontractors' unlawful disclosure and/or use of protected data. The terms of this paragraph shall survive the cancellation or termination of this Agreement 13. RECORDS. Contractor shall maintain complete and accurate records of expenses involved in the performance of services. 14. WARRANTY. The Contractor guarantees that all new equipment warranties as specified within the bid 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 1697815 3 92 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. The Contractor further warrants to the City that all goods and services furnished under the Contract will be in conformance with Contract Documents and that the goods are of merchantable quality and are fit for the use for which they are sold. This warranty is in addition to any manufacturer's standard warranty y,and any warranty provided by law. 15. NONDISCRIMINATION. All Contractors and subcontractors employed shall comply with all applicable provisions of all federal, state and municipal laws which prohibit discrimination in employment to members of a protected class and all rules and regulations, promulgated and adopted pursuant thereto. The Contractor will include a similar provision in all subcontracts entered into for the performance of this contract. 16. INDEMNITY. The Contractor agrees to defend,hold harmless,and indemnify the City,its officers,agents, and employees,for and against any and all claims,demands,actions,or causes of action, of whatever nature or character, arising from the Consultant's performance of work or services provided for herein. The Contractor shall take all reasonable precautions for the safety of all employees on the site and shall provide reasonable protection to prevent damage or loss to the property on the site or properties adjacent thereto and to work, materials and equipment under the Contractor's control. 17. 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. 18. GOVERNING LAW. The laws of the State of Minnesota govern the interpretation of this Contract. 19. 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. 20. ENTIRE AGREEMENT. This Contract represents the entire agreement of the parties and is a final,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. 21. TERMINATION. This Agreement may be terminated by the City for any reason or for convenience upon written notice to the Contractor. In the event of termination, the City shall be obligated to the Contractor for payment of amounts due and owing for materials provided or for services performed or furnished to the date and time of termination. 1697815 4 93 Dated: ,11-7 > ,2013. CITY OF FARMINGTON By: Todd Larson,Mayor 014):4. , By: David MCKni_ L. e: Administrator 1697815 5 Dated: 5 /15 2013 CONTRACTOR: xile,• By. Mike Kastner 1697815 6 • fir®®1(4;1 Mechanical Service Exhibit A 23996 Olinda Trail North, Scandla,MN 55073 Phone: 651-248-6195 Fax:651-433-3858 Date: Monday,April 15,2013 To: Schmitz-Makl Arena 114 W.Spruce St Farmington,MN 55024 Phone 651-280-6960 Fax Attn: Jeremy Piro,City of Farmington Email jpire @ci.farmington.mn.us Phone 651-280-6902 Re: Co-Ray-Vac retrofit Scope of Work: Retrofit the existing CO-RAY-VAC infrared heating system utilizing the existing chain,turnbuckles,vacuum pump exhaust vent,and electronic control.We will replace the items in the options below. Option#1 Entire System is Double Coated Porcelain Tubing 190'Double Coated Porcelain Coated Tubing(Recommended Highly because of high moisture environment). 190'Standard Reflector 190'Side Reflector and Supports Couplings,Reflector Supports,Hangers,and 90*Elbow Double Coated 4 burners BID AMOUNT PER THE SCOPE OF WORK OPTION 1: $22,000.00 Option#2 Entire System is Heat Treated Aluminized Tubing(Better at corrosion resistance than standard Hot Rolled Steel tubing) 190'Heat Treated Aluminized Tubing 190'Standard Reflector 190'Side Reflector and Supports Couplings,Reflector Supports,Hangers,and 90*Elbow Aluminized 4 burners BID AMOUNT PER THE SCOPE OF WORK OPTION 2: $20.700.00 Option#3 Standard Co-Ray-Vac with Hot Rolled Steel Tubing with Double Coated Tailpipe. 120'Hot Rolled Steel Tubing\ 70' Double Coated Tailpipe tubing 190'Standard Reflector 190'Side Reflector and Supports Couplings,Reflector Supports,Hangers,and 90*Elbow Double Coated 4 burners BID AMOUNT PER THE SCOPE OF WORK OPTION 3: $20,300.00 As always,we will work with you and provide the best service and pricing available. Customer agrees to pay MK Mechanical all amounts due for any services or materials provided upon receipt of any invoices from MK Mechanical.Customer agrees to a service charge of 1.5%on all balances thirty(30)days or more past due.Customer also specifically agrees to pay MK Mechanical for all collection costs,including employee and employer time and expense,and all attorney fees and legal cost incurred in either collection of or protection of MK Mechanical's interest in customers past due accounts or performance of the work provided.In the event the customer terminates or breaches this agreement/contract customer still agrees to pay MK Mechanical in full on a time and material basis for all services or materials provided to the customer including but not limited to the time MK Mechanical has expanded in preparing any invoices and estimates, and an additional consulting and adjusting fee equal to 20%of the total services and materials MK Mechanical provided to the customer for the work up to and including the date of such termination or breach,which fee represents the industry standard for reasonable profits and overhead generally paid and is not a penalty.My change or modification to this agreement and these terms must be in writing and change orders signed by both parties.All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices.MK Mechanical will not be held liable for agreements contingent upon strikes,accidents or delays beyond Page 1 96 be responsible for,nor will bid on this ixeleci,any wort:or cost of asbestos abatement. Building owner shall provide safe work area with free access to carry out above work. Upgrading of existing systems to meet the most current codes is limited to scope of work detailed above. All work to be performed during normal workday on straight time unless otherwise noted.Materials are to be paid for upon delivery to the job site.MK Mechanical excludes extended or additional parts or labor warranty coverage beyond the manufacturer's warranty or guarantee. This agreement and quote is "Prelien Notification"and"Lien Claimants Notice"as required by Minnesota Law. Authorized Signature MK�i, ar cal • • Accepted gY d � —° °"" . 4•14/ Title it-la cp0r, Mike Kastne Date ? 0/„3' • Page l AGREEMENT AGREEMENT made this !o day of , 2013, between the CITY OF FARMINGTON,a Minnesota municipal corporat nn("City"), and BECKER ARENA PRODUCTS,INC.,a Minnesota corporation("Contractor"). IN CONSIDERATION OF THE MUTUAL UNDERTAKINGS HEREIN CONTAINED,THE PARTIES 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. Option 2 of Contractor Proposal dated February 7th, 2013, attached as Exhibit"A." In the event of 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"B"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. OBLIGATIONS OF THE CITY. The City shall pay the Contractor in accordance with the bid. 4. 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. 5. 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. 6. TIME OF PERFORMANCE. The Contractor shall complete its obligations on or after April 16,2013 and before September 1,2013. 7. PAYMENT. a. When the obligations of the Contractor have been fulfilled, inspected, and accepted, the City will pay the Contractor. Such payment shall be made not later than thirty (30) days after completion,certification thereof,and invoicing by the Contractor. b. No final payment shall be made under this Contract until Contractor has satisfactorily established compliance with the provisions of Minn.. Stat. Section 290.92. A certificate of the commissioner shall satisfy this requirement with respect to the Contractor or any subcontractor. S. EXTRA SERVICES. No claim will be honored for compensation for extra services or beyond the scope of this Agreement or the not-to-exceed price for the services identified in the proposal without written submittal by the Contractor,and approval of an amendment by the City, with specific estimates of type, time, and maximum costs, prior to commencement of the work. 9. PROMPT PAYMENT TO SUBCONTRACTORS. Pursuant to Minnesota Statute 471.25, Subdivision 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 one and one-half percent(1 Y2%)per month or any part of a month to subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest 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. A subcontractor who prevails in a civil action to collect interest penalties from the Contractor shall be awarded its costs and disbursements, including attorney's fees,incurred in bringing the action. 10. WORKER'S COMPENSATION. If Contractor does public work,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. 11. 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 by endorsement: 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 •. _ .,. ... - r . . . s : ■• . .- I.:r n t a i n e d foram o_is u .' ■ .. o.. .. _ :1 .: *i -- ., _ _ ..l . .. ..,i. • . ..} A.• %4 - . 169812 2 • . . • rp y y ' I.,-Nfj �.• N.1,:_ -.:.:� • 1'i i :face •: I Inc u I e coverage or e O o —x (Exp1e ion)- C-(Gellapse nd) Contractual Liability(identifying the contract): Bodily Injury: $2,000,000 each occurrence Property Damage: $2,000,000 each occurrence $2,000,000 aggregate Personal Injury,with Employment Exclusion deleted: $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 12. MINNESOTA GOVERNMENT DATA PRACTICES ACT. Contractor must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to (1) all data provided by the City pursuant to this Agreement, and (2) all data, created, collected, received, stored, used, maintained, or disseminated by Contractor pursuant to this Agreement. Contractor is subject to all the provisions of the Minnesota Government Data Practices Act,including but not limited to the civil remedies of Minnesota Statutes Section 13.08,as if it were a government entity. In the event Contractor receives a request to release data, Contractor must immediately notify City. City will give Contractor instructions concerning the release of the data to the requesting party before the data is released. Contractor agrees to defend, indemnify, and hold City, its officials, officers, agents, employees, and volunteers harmless from any claims resulting from Contractor's officers', agents', city's, partners', employees', volunteers', assignees' or subcontractors' unlawful disclosure and/or use of protected data. The terms of this paragraph shall survive the cancellation or termination of this Agreement. 13. RECORDS. Contractor shall maintain complete and accurate records of expenses involved in the performance of services. 14. WARRANTY. The Contractor guarantees that all new equipment warranties as specified within the bid 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 169812 3 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. The Contractor further warrants to the City that all goods and services furnished under the Contract will be in conformance with Contract Documents and that the goods are of merchantable quality and are fit for the use for which they are sold. This warranty is in addition to any manufacturer's standard warranty y,and any warranty provided by law. 15. NONDISCRIMINATION. All Contractors and subcontractors employed shall comply with all applicable provisions of all federal, state and municipal laws which prohibit discrimination in employment to members of a protected class and all rules and regulations, promulgated and adopted pursuant thereto. The Contractor will include a similar provision in all subcontracts entered into for the performance of this contract. 16. INDEMNITY. The Contractor agrees to defend,hold harmless,and indemnify the City,its officers,agents, and employees,for and against any and all claims, demands,actions,or causes of action, of whatever nature or character, arising from the Consultant's performance of work or services provided for herein. The Contractor shall take all reasonable precautions for the safety of all employees on the site and shall provide reasonable protection to prevent damage or loss to the property on the site or properties adjacent thereto and to work, materials and equipment under the Contractor's control. 17. 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. 18. GOVERNING LAW. The laws of the State of Minnesota govern the interpretation of this Contract. 19. 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. 20. ENTIRE AGREEMENT. This Contract represents the entire agreement of the parties and is a final,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. 21. TERMINATION. This Agreement may be terminated by the City for any reason or for convenience upon written notice to the Contractor. In the event of termination, the City shall be obligated to the Contractor for payment of amounts due and owing for materials provided or for services performed or furnished to the date and time of termination. 169812 4 101 Dated: h�c� ? ,2013. CITY OF FARMINGTON By: Todd Larson,Mayor By: Qt .-4';ec' i David McKni t, y Administrator 169812 5 Dated: 5-I S ,2013 CONTRACTO BEC 414 � r 1 �• INC. 13 % Prege Its: 169812 6 J ...t ii- 14 `k.�,r cly,,c,0.� ,0,. 3',. ��,.rr,v�,v��fs.z.':3{& 7y$r�[,+t��t.�- "f ,,.,,, ,.`�5;y'rt' ,l z'cf`,x t • 'a47�,5FN,--,,,,a... kt`.e' `t.Cs;,it? z 3r��y.'v�j.S t t G l �L{�({,, ,,,,,,`3, 5}, �S4W� '?..in.Ec�`.-.�u-d t1� ,:.z:f-ag„`+�G�t`+�,,,93,4 'i 4� ..r 'f3'�r",.,:r. r -,•,,,,,..., 4•tW EW41 �y le fc "s ,'i A4. .zy , .``14 3 7V44, ,r, # c 2t .Fes'`�T`°S t.,5- ..es ` C GS `e '- � ^l 's �f`,"rni YA't e ,- :?L.Sp�, N,--'r, 4r “ rS, W `�"`y �, ,_. a ^r1 ap{ i f x-s, m.c d,, t � ,itr l`'V.✓'_,,J 1 ' Vr to zi4y y J.Ps 1•F ..g i� 'R "-n,, v,9 f 'e'., a rLi s I s'". :/;!"41 r 5 '' /1 .e �n � -s- � �, s � -' 'tea. L-c.,<j. \ 7f, f £.,' 14 N .,Jfyf 1�2� ) i."Ai1`2`,1( �relf t, ,/e.7,,,/,,`$�l �i P h{ 5 , rr� ha" f i' i� n �f r i F / ;, A- s -t 1 , . �.r n ,,,./( } lv. f;, £-L na�{ "'. _ t uE J "-r�. a'� 4.� �.�Fj fin f 1� p�" U � l /� Y�� , 9` ... . . l! n?L, :',"i 4 -{ ,.i,,^ t ,,,-/Ij<i2^,sfy.A ivt rA,i,1 x gZAKr f'!3 ' ,-i r..f t' r " . h� , t. roe ,,,,,,,r<-',,s }a . 4-F:4" ,?>' !. t'k ,a �i `r^v sC,. k es, -..,..--i,7,-k {,' zS/, rto.) p� `: ; ti J'•, ,- � . sa tes ,..,),,,,,gpS sw.`.' k „t ztro-, ' ,, *r �r< -' l"t,',2`,.'"'./' 'Y 7„j At; r ' Q E CE R.. J roJ t'l "k :. `',;.y„., �,` �o 1 r z3''Y,>.,'a V v1'6 k.y” :.,s zx�h,F M srZ S s'S ,.. �.. I '.�fi:t 1,7,,,,,,,,,..,;,,,,v,,,,,,, . � uea�,`f w.s.. m ' z 1_,tn , '. a .. , m ,tr .y, - v.k k: I ,,, tU 0,4.5-t.z�rf e, -;,.��� att . E 1�"y KM', , r ,' AENA PRODOS, N0�� ,' J«" >'' , x£ 5. Y :r :(r.t, , L. jt'''''''ss• ' , Y*KS ' . I+/.h;'''',- "A''', ' trill w .c? .,„ ,N' � "-•t. —. n,..,t.. a•,v ru.iFa.:e.s;;u:,,,,>o.:.-M:e. . ,,A,S? w, t •.:-.' r r n s .,<,:.,A,�.S . , .... Quotation#Farmington,MN DEH Revision# Date: February 7th,2013 NJPA Member#: 20423 Prepared for: Farmington, City of Mr.Jeremy Pire Farmington,Minnesota Our understanding of your current situation: You are in the planning stages of adding Dehumidification to your Ice Rink located in Farmington, MN Our approach to meet your needs: • We are providing pricing for the following components and related options, Thank you for considering Becker Arena Products, Inc.as a product supplier and partner in your` current project. We have been serving the Sports and Recreation industry since 1988. We welcome the opportunity to earn your trust with this project by demonstrating our ability to perform to your satisfaction through our staff of professionals,with out versatility,experience, on time deliveries and commitment to quality, With Becker Arena Products you will receive a Worry Free project—Guaranteed. This system is available through the NJPA Cooperative Purchasing Program at discounted pricing. 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'4a 14.- .1,+,1 Q t� t t F .' 41, „ er uYd a<'y�; r � ,tr ,; r .e, rs:,,,,zv f a1,"',..eCc a�,,k . , `c: �� , t 'x a'a } ,,. ,wx 1.r �,,+A (' _...1� f•y -., 7`� ,,-t,... r�3t, -Y' ' R ' lim Y.� <-c•$!'..,:�*4i, ?�b,�x .?rY7.r -:..:,.�£t kh k' <yn.,.F -. ,.:..��x��i:,,,ze�• ..,,,e-x�� � ...s.Orr .xn'�°`' :bix'f:•-w,.. ...__'�:..; ' > ,r�>; 1 I 104 ti% 'u`v;°" K r,i,6ral r vw w. - t f 4'�"r' d",i r *Zy' �t u- -. �r, �"'� :F•/# '. .�.,. s ^•: r f v. G777C-,` sv ,�k`ztc..� '��- � �;�f2.v �" ti. M .� „� f �. t t ,$ . ; 'h' �:a�4,��..: � �• '�f6,`�` A M r k xt C uota l®n Der alts anc 0ptlof s� ttfi : , ''4wC�d, �•- r'tf f �.�..�*��.�''''�ex�f"'+¢�"y' 3 ,.Fw3S�`sr�,.'t�'�a�{% �ri�`kf'»^y"C,�ar:�v�. � �4�t,R" ';71,17-77:7,7 z✓a '•^- --ti rim?r�sesa=�'..\qy^. , 52._ w,cF` -28 J �-�9""ic- "' �'"^ .A� �!?'.s3c�w3.P'Yr,.l�' � M', r sI?�'� .>�•z ,N s�,x �r c' ysi Jr s � �'C.�r s 3cUs AT roducts In •, Savage,. N 55378� at q �vw LeckerarctlaTc om "' /80O 2`34 pc� !2:.. ;."o?. r zv he..c,`��,wr...?r., n ..... 4" ;k't' , ix...,,;`"Ci'S `= kF "'s 0� Per your inquiry, below please find the pricing for the following dehumidifiers and options. DESICCANT DEHUMIDIFICATION UNITS Option#1—Becker Arena Products to supply only One MS-3600 Desiccant Dehumidifier, One Fusible Safety Switch and One Humidistat, NJPA—NATIONAL JOINT POWERS ALLIANCE PURCHASING PROGRAM DISCOUNTS BECKER ARENA PRODUCTS, INC—VENDOR CONTRACT#081910 -RAP TOTAL PRICE WITHOUT FREIGHT $ 30,825.00 NJPA BASE PRICE DISCOUNT 5% Es 1,531.25] FREIGHT TO FARMINGTON, MN $ 1,200.00 BASE PRICE WITH 5% NJPA DISCOUNT $ 30,293.75 Option#2—Becker Arena Products to supply only One MS-4800 Desiccant . Dehumidifier, One Fusible Safety Switch and One Humidistat. NJPA—NATIONAL JOINT POWERS ALLIANCE PURCHASING PROGRAM DISCOUNTS BECKER ARENA-PRODUCTS, INC—VENDOR CONTRACT 1#081910 -'BAP TOTAL PRICE WITHOUT FREIGHT $ 39,828.00 NJPA BASE PRICE DISCOUNT—5% 1$ 1,981.25] FREIGHT TO FARMINGTON, MN $ 1,200.00 BASE PRICE WITH 5% NJPA DISCOUNT $ 38,843.75 Please Note: Prices do not Include any installation. Plus applicable taxes. Prices do not include local,state or federal taxes. We are looking forward to the opportunity of working with you on your project and if we can be of further assistance please do not hesitate to call. Best Regards, Jon Jackson Becker Arena Products, Inc. Becker Arena Products, Inc Is an Affirmative Action/Equal Employment Opportunity Employer 2 �f K3..�, i z�� ..,.. �- 31 £ ',55378 ,.���n`.N�� n1�hW✓ '!v� �5��''�t '��'�„y�,y4 �C:�`1 5z�,�wxF��`'i+.�. �S'� SW4� 11�' ���'� �).60.1 West K4wy L3{ r aSavade ft{IN ,I ug, ` wW becl<erarena cam, �4F30Q 239 5>22s �` ..t..:..��rx's �r>,: - +1�.k? N ,rrc31'� ©Y�*'�. i��* t.�n„.e„ ::•v ..0 r::�;. K�e'az a.'. M , N2h'! I . 105 AGREEMENT AGREEMENT made this 6 411 day of ?"-'-7-0E2, , 2013, between the CITY OF FARMINGTON, a Minnesota municipal corporation ("City"), and YALE MECHANICAL,LLC,a Minnesota limited liability corporation("Contractor"). IN CONSIDERATION OF THE MUTUAL UNDERTAKINGS HEREIN CONTAINED,THE PARTIES 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. Contractor Proposal dated February 11th,2013,attached as Exhibit"A." In the event of 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"B"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. OBLIGATIONS OF THE CITY. The City shall pay the Contractor in accordance with the bid. 4. 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. 5. 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. 6. TIME OF PERFORMANCE. The Contractor shall complete its obligations on or after April 16,2013 and before September 1,2013. 7. PAYMENT. a. When the obligations of the Contractor have been fulfilled,inspected,and accepted, the City will pay the Contractor. Such payment shall be made not later than thirty(30) days after completion,certification thereof,and invoicing by the Contractor. b. No final payment shall be made under this Contract until Contractor has satisfactorily established compliance with the provisions of Minn. Stat. Section 290.92. A certificate of the commissioner shall satisfy this requirement with respect to the Contractor or any subcontractor. 8. EXTRA SERVICES. No claim will be honored for compensation for extra services or beyond the scope of this Agreement or the not-to-exceed price for the services identified in the proposal without written submittal by the Contractor, and approval of an amendment by the City, with specific estimates of type, time, and maximum costs, prior to commencement of the work. 9. PROMPT PAYMENT TO SUBCONTRACTORS. Pursuant to Minnesota Statute 471.25, Subdivision 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 one and one-half percent(11/2%)per month or any part of a month to subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest 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. A subcontractor who prevails in a civil action to collect interest penalties from the Contractor shall be awarded its costs and disbursements, including attorney's fees,incurred in bringing the action. 10. WORKER'S COMPENSATION. If Contractor does public work,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. 11. 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 by endorsement: 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 Products and Completed Operations Insurance shall be maintained for a minimum period of three (3)years after final payment and Contractor shall continue to provide evidence of such coverage to 169813 2 107 City on an annual basis during the aforementioned period;or if any reason Contractor's work ceases before final payment,for a minimum period of three(3)years from the date Contractor ceases work. Property Damage Liability Insurance shall include coverage for the following hazards: X (Explosion) C (Collapse) U (Underground) Contractual Liability(identifying the contract): • Bodily Injury: $2,000,000 each occurrence Property Damage: $2,000,000 each occurrence $2,000,000 aggregate Personal Injury,with Employment Exclusion deleted: $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 12. MINNESOTA GOVERNMENT DATA PRACTICES ACT. Contractor must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to (1) all data provided by the City pursuant to this Agreement, and (2) all data, created, collected, received, stored, used, maintained, or disseminated by Contractor pursuant to this Agreement. Contractor is subject to all the provisions of the Minnesota Government Data Practices Act,including but not limited to the civil remedies of Minnesota Statutes Section 13.08,as if it were a government entity. In the event Contractor receives a request to release data, Contractor must immediately notify City. City will give Contractor instructions concerning the release of the data to the requesting party before the data is released. Contractor agrees to defend, indemnify, and hold City, its officials, officers, agents, employees, and volunteers harmless from any claims resulting from Contractor's officers', agents', city's, partners', employees', volunteers', assignees' or subcontractors' unlawful disclosure and/or use of protected data. The terms of this paragraph shall survive the cancellation or termination of this Agreement. 13. RECORDS. Contractor shall maintain complete and accurate records of expenses involved in the performance of services. 14. WARRANTY. The Contractor guarantees that all new equipment warranties as specified within the bid 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 169813 3 108 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. The Contractor further warrants to the City that all goods and services furnished under the Contract will be in conformance with Contract Documents and that the goods are of merchantable quality and are fit for the use for which they are sold. This warranty is in addition to any manufacturer's standard warranty y,and any warranty provided by law. 15. NONDISCRIMINATION. All Contractors and subcontractors employed shall comply with all applicable provisions of all federal, state and municipal laws which prohibit discrimination in employment to members of a protected class and all rules and regulations, promulgated and adopted pursuant thereto. The Contractor will include a similar provision in all subcontracts entered into for the performance of this contract. 16. INDEMNITY. The Contractor agrees to defend,hold harmless,and indemnify the City, its officers,agents, and employees,for and against any and all claims, demands,actions,or causes of action, of whatever nature or character, arising from the Consultant's performance of work or services provided for herein. The Contractor shall take all reasonable precautions for the safety of all employees on the site and shall provide reasonable protection to prevent damage or loss to the property on the site or properties adjacent thereto and to work, materials and equipment under the Contractor's control. 17. 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. 18. GOVERNING LAW. The laws of the State of Minnesota govern the interpretation of this Contract. 19. 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. 20. ENTIRE AGREEMENT. This Contract represents the entire agreement of the parties and is a final,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. 21. TERMINATION. This Agreement may be terminated by the City for any reason or for convenience upon written notice to the Contractor. In the event of termination, the City shall be obligated to the Contractor for payment of amounts due and owing for materials provided or for services performed or furnished to the date and time of termination. 169813 4 • 109 Dated: . ? , 2013. CITY OF FARMINGTON By, r Todd Larson,Mayor By: afv` avid McKni , e dministrator 169813 5 Dated: S(I3f 13 ,2013 CONTRACTOR: YALE MECHANICAL,LLC By: // , ?fl ee�vat ti Q p,L, Its: General Manager 169813 6 Li- A lx -a+ $if*iif M E C H A N I C A L HVAC•PIPING•SHEET METAL•MILLWRIGHT•PLUMBING February 11, 2013 Mr. Jeremy Pier City of Farmington 430 Third Street Farmington,MN 55024 Subject: Dehumidification Ductwork Yale Project Number: P121259 Dear Jeremy: Yale Mechanical is pleased to present the following proposal for the above-referenced project for a "design-build"HVAC project. This proposal is based on our onsite visit on July 2, 2012. Work included as part of this proposal is as follows: 1. Provide necessary spiral supply and return ductwork allowing for approximately 30 feet of spiral supply air ductwork inside the Arena and surface mount registers. 2. Provide necessary insulation on supply and return ductwork on exterior of building. 3. Provide necessary gas piping from existing main on outside of building. 4. Provide necessary humidity controls and wiring. 5. Provide start-up and test. 6. Provide necessary drawings. 7. Provide necessary tools, lifts, supervision and delivery. We propose to do the work described above for the sum of TWENTY-ONE THOUSAND SIX HUNDRED EIGHTY-FIVE DOLLARS ($21,685). Work not included as part of this proposal is as follows: 1. Overtime labor. 2. Concrete house keeping pad (Will be required). 3. Concrete saw cutting in wall (Will be required). 4. Electrical wiring. 5. Labeling or tags on piping. 6. Sales tax on labor and subcontractors, if applicable. This proposal is firm for 30 days. If an extension is required, it must be obtained in writing. All equipment furnished and installed by us that is found to be defective within the period of one year following completion of installation shall be repaired or replaced by us at no cost to the purchaser. This proposal in design and detail is Yale Mechanical property and must not be used except in connection with our work. All rights of design and detail are reserved. Making Buildings Work Better Since 1939 • ./)a'�l ?'-T.; -.'1 d-:.n :-'J'�.JJiJ t ,i+✓„,Ya�5y"7�r.u,..,<�fi,-�'Y,r3Y7M,�>i.�r.•''c�'.o.10..'.?.r,�z..✓Y":.'/e".'.RR,a'.r.f u ",;'vra�..5 2:2�'z sJ �;.•a€.n rt.T.,;9�n`�....e_r-r r rrvS-Y1t,�i."�,.•r�_J%'C f r'.. 7�a G1 F-4-�.Ey1.Sr"'�6 t�-fff.��i q�s'',•C,�v 4r a,..,.',zwr.'-.y,..,s a dI.,,r w✓j rr�Tr.+n�.._.��1_..�-`-.r..'.£•''sJ 1.,s Z„31 r i 21'5..;�";l.,g,�ft,C.(s�->,�ss'.',.'•,l�a�•f-G'`F;6,.�n w f,4'�•f z.-J�'iAr f.'.�-,s I%^Yt c k�!J r r Yh.•s'r�-Ci'.-r Ek>��°,�i5 c�''i/r e`,IEs.'x fti.SJ�v..r.'rlE`e:`S..f��nF�e',/4r�c;u.,rr ih n F'r'.� c��'o..4.m,•t,�rn 4 . !. F v,rEr. i r, � L. n P:9 r 4k10 7 4ry �1,41 T;iA§1 0,2 9, r f r '°fix 3 r4.�7� tt 10 ly r n! nL3e4f �Y1V1 v.YS ltJ f ,Cl-f4r5 Atitaf nsr tAx .t :=11.11 w"x11avfd ai :.. Mr. Jeremy Pier February 11, 2013 Page 2 Payment shall be made by the 10th of the month on all invoices issued by the 1g of the month for all material and equipment installed or on hand and all labor performed. Final payment to be made within 30 days after substantial completion of the work. Thank you for the opportunity of allowing us to present this proposal to you. Should you have any questions regarding this matter, please do not hesitate to contact us as we hope to be of further service to you on this project. Sincerely, Andy Skindelzen Andy Skindelien Project Manager /je CITY OF FARMINGTON ACCEPTED BY: PRINT NAME: �� / f'Scr5G7 PRINT TITLE: o r DATE: S a©/3 e. AGREEMENT AGREEMENT made this 4h day of , 2013, between the CITY OF FARMINGTON, a Minnesota municipal corporation ("City"), and HELM ,INC.,a Minnesota corporation("Contractor"). IN CONSIDERATION OF THE MUTUAL UNDERTAKINGS HEREIN CONTAINED,THE PARTIES 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. Contractor Proposal dated March 26th,2013,attached as Exhibit"A." In the event of 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"B"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. OBLIGATIONS OF THE CITY. The City shall pay the Contractor in accordance with the bid. 4. SOFTWARE LICENSE. lithe 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. 5. 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 terns and conditions as both parties may agree to and set forth in writing. 6. TIME OF PERFORMANCE. The Contractor shall complete its obligations on or after April 16,2013 and before September 1,2013. • • 7. PAYMENT. a, When the obligations of the Contractor have been fulfilled,inspected,and accepted, the City will pay the Contractor. Such payment shall be made not later than thirty (30) days after completion,certification thereof,and invoicing by the Contractor. b. No final payment shall be made under this Contract until Contractor has satisfactorily established compliance with the provisions of Minn. Stat. Section 290.92. A certificate of the commissioner shall satisfy this requirement with respect to the Contractor or any subcontractor. 8. EXTRA SERVICES. No claim will be honored for compensation for extra services or beyond the scope of this Agreement or the not-to-exceed price for the services identified in the proposal without written submittal by the Contractor, and approval of an amendment by the City, with specific estimates of type, time, and maximum costs, prior to commencement of the work. 9. PROMPT PAYMENT TO SUBCONTRACTORS. Pursuant to Minnesota Statute 471.25, Subdivision 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 one and one-half percent(11/2%)per month or any part of a month to subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest 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. A subcontractor who prevails in a civil action to collect interest - penalties from the Contractor shall be awarded its costs and disbursements, including attorney's fees,incurred in bringing the action. 10. WORKER'S COMPENSATION. If Contractor does public work,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. 11. 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 by endorsement: 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 Products and Completed Operations Insurance shall be maintained for a minimum period of three (3)years after final payment and Contractor shall continue to provide evidence of such coverage to 169814 2 City on an annual basis during the aforementioned period;or if any reason Contractor's work ceases before final payment,for a minimum period of three(3)years from the date Contractor ceases work. Property Damage Liability Insurance shall include coverage for the following hazards: X (Explosion) C (Collapse) U (Underground) Contractual Liability(identifying the contract): Bodily Injury: $2,000,000 each occurrence Property Damage: $2,000,000 each occurrence $2,000,000 aggregate Personal Injury,with Employment Exclusion deleted: $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 12. MINNESOTA GOVERNMENT DATA PRACTICES ACT. Contractor must comply with the Minnesota Government Data Practices Act,Minnesota Statutes Chapter 13, as it applies to (1) all data provided by the City pursuant to this Agreement, and (2) all data, created, collected, received, stored, used, maintained, or disseminated by Contractor pursuant to this Agreement. Contractor is subject to all the provisions of the Minnesota Government Data Practices Act,including but not limited to the civil remedies of Minnesota Statutes Section 13.08,as if it were a government entity. In the event Contractor receives a request to release data, Contractor must immediately notify City. City will give Contractor instructions concerning the release of the data to the requesting party before the data is released. Contractor agrees to defend, indemnify, and hold City, its officials, officers, agents, employees, and volunteers harmless from any claims resulting from Contractor's officers', agents', city's, partners', employees', volunteers', assignees' or subcontractors' unlawful disclosure and/or use of protected data. The terms of this paragraph shall survive the cancellation or termination of this Agreement. 13. RECORDS. Contractor shall maintain complete and accurate records of expenses involved in the performance of services. 14. WARRANTY. The Contractor guarantees that all new equipment warranties as specified within the bid 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 169814 3 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. The Contractor further warrants to the City that all goods and services famished under the Contract will be in conformance with Contract Documents and that the goods are of merchantable quality and are fit for the use for which they are sold. This warranty is in addition to any manufacturer's standard warranty y,and any warranty provided by law. 15. NONDISCRIMINATION. All Contractors and subcontractors employed shall comply with all applicable provisions of all federal, state and municipal laws which prohibit discrimination in employment to members of a protected class and all rules and regulations, promulgated and adopted pursuant thereto. The Contractor will include a similar provision in all subcontracts entered into for the performance of this contract. 16. INDEMNITY. The Contractor agrees to defend,hold harmless,and indemnify the City,its officers,agents, and employees,for and against any and all claims,demands,actions,or causes of action, of whatever nature or character, arising from the Consultant's performance of work or services provided for herein.The Contractor shall take all reasonable precautions for the safety of all employees on the site and shall provide reasonable protection to prevent damage or loss to the property on the site or properties adjacent thereto and to work, materials and equipment under the Contractor's control. 17. 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. 18. GOVERNING LAW. The laws of the State of Minnesota govern the interpretation of this Contract. 19. 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. 20. ENTIRE AGREEMENT. This Contract represents the entire agreement of the parties and is a final,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. 21. TERMINATION. This Agreement may be terminated by the City for any reason or for convenience upon written notice to the Contractor. In the event of termination, the City shall be obligated to the Contractor for payment of amounts due and owing for materials provided or for services performed or furnished to the date and time of termination. 169814 4 Dated: 7'777 7 ,2013. CITY OF FARMINGTON By: _ Todd Larson,Mayor By: Oal■Wi F� David McKni , '+ Administrator 1698I4 5 Dated: 57/6%20l5,2013 CONTRACTOR: HELM ELECTRONIC,.INC. B Y• Its: C)1„e_.44-S-s-Al I69814 6 HELM ELECTRIC INC. Electric Wiring Proposal 21596 Vernon Avenue s nit ; Lakeville Minnesota 55044 s1 PH.(952)461-2460 Fax(952)461-3057 F glq,A0 14- A CITY OF FARMINGTON 651 280 6960 3/26/13 SCHMITZ-MAKI ARENA Proposal Submitted To: Phone Date 114 W SPRUCE ST DEHUMIDIFIER UNIT WIRING Street Job Name FARMINGTON MN 55024 SAME City,State and Zip Code Job Location Specifications of Job INSTALL A 2 POLE 50 AMP BREAKER IN EXISTING 480 VOLT PANEL RUN UP AND OVER AND DOWN IN THE SE CORNER OF BUILDING AND OUT THUR WALL RUN A 50 AMP FEEDER 480 VOLT SINGLE PHASE UNDERGROUND ON THE EAST SIDE OF BUILDING TO ABOUT THE MIDDLE OF EAST SIDE OF BUILDING ABOUT 210 FT TO A INSTALL A 25 KVA TRANSFORMER 480 TO 120/240 VOLT SINGLE PHASE TO FEED INSTALL A 100 AMP RAINTIGHT DISCONNECT NEXT TO TRANSFORMER TO FEED INSTALL A 100 AMP FEEDER FROM DISCONNECT TO NEW DEHU DIIFILR 240 VOLT SINGLE PHASE SECURE ELECTRIC PERMIT NOTE NO CONTROL WIRING IS INCLUDED NOTE OWNER TO INSTALL A CONCRETE PAD FOR ABOVE TRANSFORMER TOTAL FOR ABOVE LIST$8,285.00 GO TO PAGE#2 PAGE#2 We propose hereby to furnish material and labor-complete in accordance with above specifications,for the sum of: AS PER ABOVE dollars($AS PER ABOVE) Payment to be made as follows: Job in progress billing due by the 10th of the following month. Balance due 30 days after final electric Inspection. All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. Any alteration or deviation from above specifications 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 cony necessary insurance. Authorized Signature: Note: This proposal may be withdrawn by us if not accepted within 5 days. 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 above. To accept h• proposal sign and date this copy. Date of Acceptance: ? 2r ji �,cRO/3 Signature: • d O v N 00 V 6 s�9 O O vim„ O O X81 N 0 � � N � 0 .b a H a4 0 c d e3 u # 0 O O - O � + i O J , I� ; ^ v 04 cV u t d W cn al V co, V b4 M u V le C4 al 0 Ri ,.i o �Gi W et a 5 QI g. •51 O • 6 0 d C% tn N g er c) M ti � 411 O O,� .Ga..,-1 4i t 0 ^ ..�K N 01 tri co N 0 d v "to N Al m d as W o ff A•► `te a ` c mss ' ig los" El. a r� U .,v A a 0 g 3 de - . $. 14 a r c. El 0 m >a N 41 i3 rA a o 1 ,a4) 0 g c wV 0 •u1 > S J. 'oa O O �r � V O 0 0 bte,Ix u * '0 0 a a) AU w .r N * 122 W , �o�F . City of Farmington ��s, 430 Third Street `.�,�^x;;. Farmington,Minnesota f. �o ' 651.280.6800•Fax 651.280.6899 A Pia www.cilarmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Robin Hanson,Finance Director SUBJECT: 2012 Financial Operating Report DATE: May 6,2012 INTRODUCTION Attached is the 2012 Financial Operating Report. You will notice that in many ways the report format is similar to what you have been given in the past,yet the report looks different. This report was created in Insight, a new report writer. While it takes an initial investment of time to create the report, once the report is created it takes less ongoing time to create the periodic updates,than the previous reports which were maintained in Excel. There are two other significant advantages: 1)the dates and/or time periods (month,quarter year, etc.)can be easily changed and the report updated in minutes which provides opportunities for additional comparisons and 2) should an adjustment be made to prior periods,because the report writer `reads' the most recent general ledger information to create the reports,those changes are automatically incorporated.No one has to manually update any separately maintained reports. • One disadvantage to this reporting method is we are unable to include the cumulative fund balance in these reports. Staff will continue maintain the historical General Fund fund balance graph you are accustomed to reviewing. One additional positive change,the liquor operations reports have been enhanced to include the two operating benchmarks you approved earlier this year. Their report now includes the gross profit and profit as a %of sales figures as part of the standard report,along with four years of historical information. DISCUSSION The primary focus of this review will be the 2012 actual revenue and expenditures/expense amounts as compared to budgeted amounts. Later this month the financial review will focus on the 2012 financial results and their impact on the various Fund's fund balances. General Fund Actual revenues were $534,941 more than budgeted. The more significant revenue variances include: • Property Taxes received were more than budgeted due to an increase in collection of previously delinquent taxes, 124 • Intergovernmental revenue came in over budget due to higher than anticipated state aid for roads, police aid, fire aid, and disaster relief reimbursement monies related to a summer storm,and • The City received $95,000 in December 2012 (included in Miscellaneous Revenues) from the sale of the old Senior Center. Expenditures were $350,482 less than budgeted. Many areas were under budget due to conservative spending. Variances other than the conservative spending include: • Administration and Community Development were under budget due to a reduction in staffing. • Communication expenditures exceeded budgeted primarily due to the actual IT Services charges being more than budgeted. • City Hall expenditures exceeded budgeted amounts due to the way staff time was charged during the year. This is offset by reduced time charged to other areas. • The individual line items have significant variances, but on a combined basis the Police Administration,Patrol Services and Investigations line items were within$242 of budget. • Emergency Management expenditures exceeded budget due to the upgrade of all of the City's warning sirens. • Engineering expenditures were higher than budgeted due to more work being charged to this area. This was offset by reductions in amounts charged to non-general fund budgets. • Park Maintenance expenditures were higher than budgeted due to actual staff time spent in this area being more than anticipated in the budget. • Transfers Out were higher than budgeted due to $320,000 being transferred into the Arena Fund to eliminate the negative fund balance and$51,000 being transferred into the Private Capital Projects Fund to restore the cash balance to at least equal to the accounts payable balance. Rambling River Center Actual revenues exceeded budgeted by $10K due to actual membership fees and rental income being more than budgeted. Actual expenditures were less than budgeted by approximately $12K. The majority of the decrease was attributable to utility costs being less than budgeted due to the milder winter, and both salaries and related benefits, as well as professional services, being less than budgeted. Swimming Pool Actual revenues and expenditures approximated budget. EDA Actual revenues were more than budgeted. This is due to the receipt of a $25K CDBG reimbursement grant related to a roof replacement project and $25K in excess TIF funds which were collected in 2012 and deposited in the EDA Fund. Actual expenses were more than budgeted. The difference is comprised of the disbursement related to the $25K CDBG grant previously mentioned and professional services related to the walkway for the new dental building. Due to Council's decision to transfer $225,000 into this fund as part of the 2012 budget, the EDA had sufficient funds to fully repay its interfund loan from the Storm Water Trunk Fund early and provide operating funds for the EDA. 125 Park Improvement Park Improvement revenues are very difficult to project. 2012 actual revenues include park developer fees, the collection of both current and delinquent special assessments, rental income and a state grant. The 2012 expenditures relate to the re-development of Lake Julia Park and the new Veteran's Memorial. Arena It was a very good year for the ice arena. While actual revenues for the year were less than budgeted,ice arena expenditures were also less than budgeted,resulting in net income of$15K. In addition$320,000 was transferred into the Arena Fund to eliminate the negative fund balance which had accumulated since the 1970's. Liquor Operations Revenues at the downtown liquor store location increased due to increased traffic from the nearby grocery store which was recently improved. Actual expenses were less as both stores saw a reduction in rent (full year for the Pilot Knob store and a partial year for the Downtown store). The increased revenues and decreased expenses resulted in a very successful year financially, with a combined net income before transfers of$281K. Sewer Operations Actual revenues approximated budgeted revenues. Actual expenses were less than budgeted by approximately $465K due to professional services being $100K under budget (TH3 project delayed one year) and $265K in debt principal repayments which did occur, but are shown as a reduction in outstanding debt on the balance sheet, rather than an expense item in proprietary funds. For 2012 this fund's expenses exceeded its revenues primarily due to charges for services not being sufficient to cover its depreciation expense. Solid Waste Actual revenues were slightly above budget. Actual expenses were less than budgeted by approximately $298K. The majority of expense line items were under budget. The decision to delay the purchase of a new garbage truck ($175K) until 2013 was the largest single reason for actual expenses being less than budgeted. Storm Water Actual revenues were slightly more than budgeted. Actual expenditures were less than anticipated due in part to the delay of a joint project with Lakeville that was budgeted for approximately $40K. In addition salaries and benefits were less than budgeted, which is offset by the increased charges being reflected in the personnel services area of the General Fund. For 2012 this fund's expenses exceeded its revenues primarily due to charges for services not being sufficient to cover its depreciation expense. Water Actual revenues were more than budgeted by $216K due to the collection of previously delinquent special assessments and the collection of developer fees and rental income related to the cell phone antennas on the water towers. The budget for the latter two items was zero. Actual expenses were less than anticipated due, in large part, to the fact that none of the City wells were scheduled for routine maintenance this year. • 126 Street Light Actual revenues were higher than budgeted by approximately $20K, while actual expenses approximated budgeted. After just two years of operation this Fund has a positive fund balance. Graph The attached graph details the change in the General Fund fund balance by month for the past five years. As of December 31, 2012 the General Fund Balance was$2,675,698. A year ago the ending fund balance was $2,136,108. The increase is attributable to the collection of previously delinquent taxes and conservative spending.Please note,while the fund balance is much improved, in accordance with governmental accounting rules, $565K of this amount was recognized as an expense(i.e.reduction in fund balance)upon delivery(i.e. receipt) of Engine 22. DISCUSSION Review the financial report, discuss any issues, and answer any additional questions. BUDGET IMPACT None. ACTION REQUESTED None,for discussion only. 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CN.I 0) co 0) co .L-- o CV 134 1.0 =Mt U I O O N O I • L• L • Cn CD I V N E - I I I I ❑ L U • , O - o O c U a I ' Lpimi I o • O N 0 manwarotwarrzzalf: I I I I I I El 0 0 0 0 0 o O o CD 0 0 0 0 0 0 0 CD 0 0 0 CD 0 CD o O o o O O o CD 0 O 0 0 0 0 0 0 0 o O o O o 0 0 0 0 0 0 _o a) a) a) CD 0) 0) CD 0) T T -r- 71" OD lf) N 6) CO CO 6)- N L) CO T N N H} H} Ca a3ualu8 pun j ui abuIg3 135 4"Rif/y��,, City of Farmington s 430 Third Street Farmington,Minnesota 651.280.6800•Fax 651.280.6899 www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Robin Hanson,Finance Director SUBJECT: 1st Quarter 2013 Financial Review DATE: May 6,2013 INTRODUCTION Attached you will find the financial results for the 1st quarter of 2013. DISCUSSION Through the end of March you would generally expect revenues and expenses to be approximately 25%of the 2013 budgeted amounts.As you review the attached financial reports, the following notes will provide explanations for the more significant variations from budgeted expectations. General Fund- Overall General Fund Revenues Year-to-date General Fund revenues total$0.3 million or 3.2%of budgeted amounts,which is significantly less than expected. The primary reason for this variance relates to the timing of property taxes,the first installment of which will not be received until June/July General Fund Expenditures Year-to-date General Fund expenditures total$2.9 million or 28.4%of budgeted amounts. Overall,this is ahead of the 25%of anticipated expenditures that would be expected for the first three months of the year. It is more than last year's expenditures for this same time period by approximately$1 million. The three mains reasons for the significant increase in the first quarter of 2013, as compared to the first quarter of 2012, are: 1) Engine 22 arrived in January 2013. In accordance with governmental accounting rules, because this resource is no longer available for current spending,the full amount must be expensed.This resulted in a$566,000 expenditure (Fire Truck line item) and corresponding decrease in the General Fund's fund balance. As the interfund loan to the Water Fund is repaid with tax levy dollars,the effect will be to reduce the interfund loan and increase the General Fund's fund balance.At the end of the five year loan repayment, the impact on the General Fund fund balance will be reversed. This illustrates the negative impact on the General Fund fund balance(21%reduction) when the City needs to purchase a piece of equipment for the general fund without 136 having previously accumulated the funds necessary to pay for it. The General Fund fund balance will always be reduced as a result of a capital asset purchase,but without the funds being planned for ahead of time,the General Fund fund balance decreases below the City's desired funding level. 2) Due to the harsher(and it seems never-ending)winter conditions the City has experienced increased snow removal expenditures ($33,500) and increased utility costs ($16,500)and, 3) So that staffing costs continue to be more transparent,the 2013 budget provided for most City staff(an additional 9.5 FTE's) who previously charged their time to enterprise funds to charge their time to the General Fund. Separate planned operating transfers from the enterprise funds to the General Fund are being made to offset these costs. This change in where staff charges their time,along with annual salary adjustments,increased employer contributions for FICA and benefits account for most of the remaining increase in expenditures in 2013. General Fund Revenue Line Items Property taxes Property taxes represent 87%of the City's total revenues. Through March 2013, $0 property tax dollars have been received, as they are not scheduled to be paid until June/July. During this time the City must rely initially on the General Fund fund balance and then other available funds to pay for its cost of operations and debt service payments. Licenses Beer and wine,arcade,tobacco and massage licenses are paid annually and are due at the beginning of the year. As a result,at the end of the first quarter this line item appears to be ahead of budget. This will even out as the year progresses. Charge for Service While `charge for service' appears to be behind budget, it is important to note many of the components for this line item, for example, fire charges,police service charges, and summer rental fees, are invoiced during the last three quarters of the year. Over the course of the year this line item is anticipated to be in line with the budget. Franchise Fees The franchise fees will be collected during the summer. General Fund Expenditure Line Items • Historical Preservation Expenditures as a percentage of budget are higher than anticipated. This is a timing difference, as the second quarter's historical preservation consultant's fee was paid before the end of March. Thus there are two quarter's invoices recorded during the first quarter of the year. This will even out over the year. 137 Elections This is a non-election year. The budget is for equipment needed for next year's election which will be purchased later this year. Patrol Services The Patrol Services expenditures are slightly ahead of budget.During the 1st quarter of 2013 two police cars were purchased. These were budgeted, one-time purchases for 2013. Fire Truck As previously mentioned,the City took possession of Engine 22 in January 2013 and in accordance with governmental accounting rules it was expensed. Snow Removal Snow removal expenditures are at 44.5% of budget due in part to the seasonal nature of this line item. In 2013 this line item is $33,500 higher than the same time period in 2012. The additional costs are related to increased purchases of salt,vehicle maintenance and staff overtime for snow removal due to the harsher and longer winter conditions experienced in 2013 as compared to 2012. Rambling River Center This line item is ahead of budget for several reasons: 1) one-time purchase of a sink and counter- top which were included in the 2013 budget,2)increased utility cots due to the colder winter, primarily natural gas,and 3)increased programming expenditures. Programming expenditures are cyclical in nature and are offset by programming revenues. Furthermore,programs are not held if participation levels are such that the City's direct costs cannot be covered. Recreation Programs This line item captures the costs related to summer recreational program offerings. Due to the seasonal nature of this item,minimal costs have been incurred at this time. Swimming Pool The pool is seasonal and is currently closed. Rambling River Center (Included in the General Fund) Overall,revenues received appear to be ahead of schedule,though it should be noted the majority of annual membership and advertising fees are recorded in January of each year. Explanations for expenditure variances were included above. Pool(Included in the General Fund) The pool is seasonal and is currently closed. EDA—Special Revenue Fund To minimize large fluctuations throughout the year, for financial reporting purposes,the majority of`transfers in' and transfers out' are recorded monthly(i.e. 1/12). It should be noted, in the case of the EDA,where the `transfers in' are tax levy dollars,rather than operating transfers as is the 138 case for many of the other funds,the funds will not actually be available to spend until June/July and December/January when the City's property taxes are received. The 2013 `transfers out' in the amount of$33,500 will no longer be needed;the related loan was paid in full as of December 31,2012. Police Forfeiture—Special Revenue Fund During the first quarter a replacement vehicle was purchased for the drug task force at a cost of $9,000. The City Administrator previously made you aware of this purchase. Park Improvement—Special Revenue Fund Revenues are received as development occurs and permits are paid, and when special assessments are received in June/July and December/January. So,it is not unusual that revenues are 10.4%of budget through March 31. Planned expenditures include the installation of a new playground and picnic shelter at Pine Knoll which will occur this summer. Ice Arena—Special Revenue Fund Due to the seasonal nature of the ice arena it is not unusual for revenues to be 40.7% of budget through the first quarter. The 2013 first quarter revenues are in line with the revenues for the same time period last year. With the colder winter,the 2013 utility costs for fuel, electricity and natural gas are higher,than for the same time period in 2012. Otherwise, given the seasonal nature of the ice arena(i.e.the majority of expenses being incurred in January-March and October—December),the 1St quarter expenses appear reasonable. Enterprise funds Liquor Operations Through the first quarter of 2013,the gross profit margin for the downtown and Pilot Knob stores was 25.6% and 25.3%,respectively. Both liquor stores met their gross profit benchmark of 25%. Through the first quarter of 2013 the combined profit for the two liquor stores totaled$32,699 or 3.6%of sales. This is less than the annual 6.5%benchmark. Generally,the first quarter is the slowest quarter of the year. Other notable differences include: 1) During the first quarter the liquor stores were charged for their annual dram shop insurance premium. This amount totaled$6,080.This amount was not included in their 2013 budget as it has historically been paid for from the Property and Casualty Insurance Fund. The 2013 budget only included the allocation of the City's overall annual 139 property and casualty insurance premium, not the portion specifically attributable to the liquor stores. A provision for this amount will be included in their 2014 budget. 2) Rather,than waiting until December to record depreciation expense, a proportionate share is now being charged each month. So,when comparing the 1st quarter 2013 financial results for each store, you must take into account that 2013 includes a $3,000/store charge for depreciation($1,000/store/month). The first quarter of 2012 does not include a similar charge, a difference of$6,000. 3) Finally,the 2013 1st quarter results include three months' rent for both the downtown and Pilot Knob store. At the time the 1St quarter 2012 financials were completed only two months' rent had been recorded. The third months' rent was included in the next quarter's financial results, a difference of approximately$13,000 between the two years. Revenue Estimates - Sewer, Solid Waste, Storm Water, Water and Streetlight Funds Due to the cyclical nature of these funds and the City's billing cycle, staff has taken the time to estimate the amount of revenues expected by month for each of the utility funds. Rather than assuming 25% of the revenues should be recorded in the first quarter of the year, staff has reviewed historical information and allocated the 2013 `charge for services' (generally,the single largest revenue item)based on past experience to each month in 2013. With the exception of the Water Fund(also receives special assessments, developer fees and rental income),the pro-rata allocation appears to provide a better method of estimating. The full budgeted amounts for the other revenue line items are still fully reflected in the Water Fund's first quarter. These amounts will be received later during the year, but on no particular schedule. This new approach is a work-in-progress. It is anticipated this revenue will even out over the year. Sewer, Solid Waste, Storm Water, Water and Streetlight Expenses The expenditure amounts appear reasonable. With the exception of streetlights (on longer in the winter,than in the summer)the majority of the expense for these funds (usage,maintenance and repairs) are generally incurred in the summer/fall. Graph The graph details that overall 2013 YTD fund balance. At the end of March the General Fund Balance was $269,075, which includes the full impact of expensing Engine 22. A year ago at this time the ending fund balance was$472,266. Review the financial report, discuss any issues, and answer any additional questions. ACTION REQUESTED None, information only. Respectfully submitted, Robin Hanson, Finance Director 140 P • 0 P a) 0) CO CL • 'm h a-I •N CO o m m Mjm mlm �-I'Q1N O)'m• m v•m M m Ned• N N � Ers m m , . . n O n O as my m N m 01 n:m m m'N O M g;h W:O [V [O y {��p 10 m 'Q �W�pplh M m Ma O N MI--I'll O m �:ml n,N. (•''=R Ml q,m,`!TI N St. O}.N V!M!m1m M tD m M m Q ft M 0 O 7'4 tl d o 071 m �i m r N n M) m. �'m lO O ! 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