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HomeMy WebLinkAbout05.20.13 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 20, 2013 7:00 P.M. CITY COUNCIL CHAMBERS Action Taken 1. CALL TO ORDER 7:00 P.M. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA S. ANNOUNCEMENTS/COMMENDATIONS a) 2013 Heritage Preservation Award - Planning Deering Family b) Louis Schmitz Foundation Information Received c) Patriotic Day Presentation 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 (5/6/13 Regular) (5/13/13 Workshop) Approved b) Approve Temporary On-Sale Liquor License Farmington Liquors - Administration Approved c) Water Restriction Enforcement Worker- Engineering Information Received d) Farmington Royalty Use of City Vehicle—Administration Approved e) Approve Job Evaluation/Wage Study Contract—Human Resources Approved f) Adopt Resolution—Accept Donations Rambling River Center—Parks and Recreation R27-13 g) Approve Bills Approved REGULAR AGENDA (The Council takes a separate action on each item on the Regular Agenda. If you wish to address the Council regarding any or all of the items on the Regular Agenda,please address the item when the item is discussed Speakers will be given at least three minutes to speak per item. Additional time may be granted to speakers representing two or more persons.) 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS a) 2012 Comprehensive Annual 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 2013 Heritage Preservation Award HPC Award memo2013 4 521 Oak Street photo 5 Louis Schmitz Foundation letter and information about the Louis Schmitz Foundation 6 Approve Council Minutes (5/6/13 Regular)(5/13/13 Workshop) Regular Minutes 8 Workshop Minutes 14 Approve Temporary On-Sale Liquor License Farmington Liquors Memo 21 Application 22 Water Restriction Enforcement Worker Water Restriction Enforcement Worker 052013 23 Farmington Royalty Use of City Vehicle Memo 24 Approve Job Evaluation (Wage) Study Consulting Agreement. Job Eval Study Consulting Agrmt 2013 26 Job Eval Study Agrmt 14May2013 27 Adopt Resolution Accept Donations to the Rambling River Center memo 36 resolution 37 Approve Bills Bills 38 2012 Comprehensive Annual Financial Report (CAFR) CM CAFR 20130520 64 Audit Opinion Draft 67 MN Legal Compliance Opinion Draft 70 Communication with Those Charged with Governance Draft 71 2012 Auditor's Council Presentation. 75 1 j City of Farmington Avii6 430 Third Strcct t l aruzington,Minnesota • 651.280.6800•Fax 65I 280.6899 ti i w 1ti Lt.cL fanrihigt{pn.rmmu.ti TO: Mayor, Council Members, and City Administrator FROM: Tony Wippler, Assistant City Planner SUBJECT: 2013 Heritage Preservation Award DATE: May 20, 2013 INTRODUCTION Annually,the City's Heritage Preservation Commission solicits nominations and selects an individual, family, company or organization that has made an outstanding contribution to the preservation, rehabilitation, restoration and use of Farmington's heritage resources and presents them with a certificate of appreciation at a City Council meeting. DISCUSSION The 2013 Heritage Preservation Award recipients are Christopher&Christine Deering. The Deering's are the owners of the home located at 521 Oak Street(please see attached picture). Heritage Preservation Commissioner LeeAnn Lehto will be in attendance at the City Council meeting to present the certificate of appreciation to Mr. and Mrs. Deering. ACTION REQUESTED Join with the Heritage Preservation Commission in presenting the 2013 Heritage Preservation Award to Christopher and Christine Deering for their property located at 521 Oak Street. Respectfully submitted, Tony Wippler,Assistant City Planner 4 G Louis Schmitz Foundation krt :;; www.loaisschmitzfonndation.org �1*Wr f. T . o lk April 19,2013 Dear City of Farmington Park N Recreation Department, Please see the short article below announcing the creation of the Louis Schmitz Foundation.The Louis Schmitz Foundation Board of Directors would like to make available scholarship dollars to deserving and needy children in the Farmington area.Louie was involved and initiated many sports programs and community projects throughout his lifetime and his philosophy was that all young people should have an opportunity to be involved in positive activities in their community. The Louie Schmitz Youth Financial Assistance Program is in full swing.The Louis Schmitz Foundation(LSF) would like to inform you about this exciting program that will benefit local children and hopefully enhance your youth programming.The main purpose of the LSF is to provide scholarships to Farmington High School graduates and financial assistance to the families of youth in Farmington so that they can participate in activities and sports that they perhaps would not have access to.With your partnership,the LSF and the City of Farmington's Park N Recreation Department can carry on Louie's commitment to local children. The dollars would be made available for the Farmington Park N Recreation Department to"award"or used to help support a child's registration fees for a City program when the need arises.The Louis Schmitz Foundation would like to enter into an agreement with you to earmark up to$500 each year that funds are available. The LSF Youth Financial Assistance Program has the following guidelines required to facilitate this process for our mutual benefit and success: • We would require an accounting or report of how the funds were used and have included a sample report for you to look over.We would make the funds available to you at the end of each year to cover the scholarships that were awarded through your discernment process for City of Farmington Park N Recreation programs for children and youth. We request that the monies be used for individual participation fees and not equipment or maintenance for any of your programs. • We would ask that the Louis Schmitz Scholarship program be mentioned in your seasonal catalog,website and any other publications that promote your programs.We can provide a logo and a link to information about the LSF and our annual golf tournament fundraiser. • Funds for the following year will be provided if proper record keeping and reports are filed. Please contact me to discuss this further.The LSF will also be offering this scholarship program to Farmington Community Education youth programs and local Farmington Youth Sports Associations also. Thank you for all you provide for Farmington's youth.We are excited to be able to partner with you to help children and youth participate in local activities,sports and events in the Farmington area. Sincerely, 6vpirj,„ Randy S itz Louis Schmitz Foundation Chair 952-435-2638 www.louieschmitzfoundation.org 6 • Louis Schmitz Foundation Created by Former Players of Coach Schmitz Louis Schmitz left a lasting impression on his former youth hockey,baseball and softball players.Louis was a popular youth coach and mentor to many,young children and teens in the Farmington area.He passed away last December(2011)after a short illness. Some of his former players held a memorial golf tournament last June and have decided to create the Louis Schmitz Foundation. The golf tournament was a success Iast June and many of his former players and families were there to support the event,silent auction and dinner. The Louis Schmitz Foundation has been formed by former players and set up with the advice and legal guidance required to set up such an organization.The Schmitz family was consulted and is supportive of the effort to remember Louie.Future plans will include Scholarships for graduating Farmington High School seniors,youth sports scholarship assistance arid community projects.The golf tournament will become an annual event to help support the Louis Schmitz Foundation. Randy Schmitz,oldest son of Louis says, "Dad would be proud to know that his support of area youth is continuing in his name,I know the family is grateful and proud of this effort." More information is available online at:www.louisschmitzfoundation.org 7 COUNCIL MINUTES REGULAR May 6, 2013 1. CALL TO ORDER The meeting was called to order by Mayor Larson at 7:00 p.m. 2. PLEDGE OFALLEGL4NCE 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: Joel Jamnik, City Attorney;David McKnight, City Administrator; Robin Hanson, Finance Director;Randy Distad,Parks and Recreation Director;Todd Reiten, Municipal Services Director; Cynthia Muller, Executive Assistant Audience: Marianne Feely, Kim Lomas, LeeAnn Lehto,Alexis Preese,Kevin Robertson,Natalie Pellin, Dave Domack 4. APPROVE AGENDA Mayor Larson added item 5c)Farmington High School Youth Development, Games for Change. MOTION by Fogarty, second by Bartholomay to approve the Agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS a) American Legion Auxiliary—Kim Lomas Ms. Kim Lomas,American Legion Auxiliary Post 189, stated the poppy is a national symbol of sacrifice. It is worn to honor the men and women who served and died for their country in all wars. Poppies are handmade by veterans and distributed across the country for donations to assist disabled veterans. Governor Dayton has declared May as Poppy Month. Michelle Leonard, past President of American Legion Auxiliary Post 189, stated they will be distributing poppies on May 24, 2013, at several locations around the communities. All of the money raised goes directly back to veterans. b) Proclaim Historic Preservation Month-Planning Mayor Larson proclaimed May as Historic Preservation Month. c) Farmington High School Youth Development Group,Games for Change Alexis Preese, Senior Member of Youth Development, stated this is a committee that puts on Games for Change, which is part of Community Ed. Marianne Feely 8 Council Minutes(Regular) May 6,2013 Page 2 is the leader. For the past four years they have held a lock-in at the high school. Teams of eight students pay$20 each and have a chance to participate in games. Kevin Robertson, sophomore at Farmington High school, stated they raised over $5,000 which was$1,000 more than last year. The Farmington Food Shelf can spread this money out to $12,000. There were 36 teams this year and it is growing every year. Students have fun playing volleyball, dodge ball, and floor hockey. They also made 500 sandwiches for the food shelf. Natalie Pellin, sophomore at Farmington High School, stated they also held a shoe drive called Soles for Souls. Their goal was 500 shoes, but they collected 900. Shoes were collected throughout the community. The shoes will be sent to Iowa. They also collected 2,000 lbs of food. 6. CITIZEN COMMENTS 7. CONSENT AGENDA MOTION by Fogarty, second by Bonar to approve the Consent Agenda as follows: a) Approved Council Minutes(4/15/13 Regular) b) Approved Agreements with Toro Company—Parks and Recreation Councilmember Bonar noted we have had a longstanding arrangement with Toro Company. He wanted to make sure the public is aware we have been doing this for several years. It is an excellent opportunity for the private and public to work together. He asked about purchasing one of the prototypes. Staff noted the mowers being tested will be torn down to test the wear and tear and Toro employees have first option to buy the equipment. Toro does make equipment that operates with propane. c) Approved National Recreation and Park Association Conference Attendance— Parks and Recreation Member Bonar noted this is a great opportunity for Parks and Recreation Director Distad to attend a national conference and looked forward to Council receiving a full report on the sessions and networking. d) Approved Agreement with Dryland Hockey, Inc.—Parks and Recreation e) Approved Easement Rother(Winkler Land Company)Access—City Attorney f) Adopted RESOLUTION R26-13 Accepting Donation Farmington Fire Relief Association-Finance g) Approved Appointment Recommendation Finance—Human Resources h) Approved Bid for Sale of Rescue 2 Fire Truck—Fire Department i) Approved Bills APIF,MOTION CARRIED. 8. PUBLIC HEARINGS 9 Council Minutes(Regular) May 6,2013 Page 3 9. AWARD OF CONTRACT a) Approve Recycling Contract Extension—Municipal Services Staff has negotiated an extension to the recycling contract with Dick's Sanitation. The recycling charge to the City will decrease from$3.93 to $2.65/month with a 4%annual increase. Any fuel charges to the City will be eliminated due to a new compressed natural gas truck being dedicated to Farmington. Residents that do not sign up for seasonal yard waste will be able to purchase stickers for$3/bag. Dick's Sanitation will provide ten 8-yard dumpsters for the cardboard drop-off locations and collect them weekly at no cost to the City. The recycling revenue will no longer be shared with the City and Dick's Sanitation will keep the revenue from recycling, but will also incur any commodity charges. This is a six-year agreement. The incidental yard waste bags will start in 2014. The revenue collected over five years from recycling averaged$2,000/year. Councilmember Bonar noted the plan for the savings on the recycling charge is to use it for future equipment purchase so there would not be rate increases for the residents in order to purchase vehicles. Councilmember Fogarty was glad to see a solid plan for recycling costs and a long contract. Councilmember Bartholomay thanked staff for their work on this. He asked if the incidental yard waste bag program could start this summer. Mr. Dave Domack, Dick's Sanitation, stated it has been a pleasure working with City staff. They would like to transition some of the programs as soon as next month including the yard waste program. Residents will purchase stickers through the City and residents would call Dick's Sanitation prior to their pickup day to have the bags picked up. This will give residents some flexibility with incidental yard waste. This contract also includes curbside clean-up. MOTION by Bartholomay, second by Fogarty to approve the 2014-2019 Recycling Contract Extension Agreement with Dick's Sanitation, Inc. APIF, MOTION CARRIED. 10. PETITIONS,REQUESTS AND COMMUNICATIONS a) Approve 2013 Arena Capital Projects Agreements—Parks and Recreation At the March 11, 2013 Council workshop, staff discussed using the remaining $111,744 from the 2010 arena improvement project. The bond counsel is recommending the City spend this money. Staff received quotes for three projects: -Replace the heating system for the bleachers on the west side of the arena. -Replace the furnace for team rooms five and six. -Add a dehumidification system(the current system will also remain in place). The work for this system was broken down into three sub-projects: -Purchase the dehumidification unit. 10 Council Minutes(Regular) May 6,2013 Page 4 -Installation of unit including gas piping and ductwork. -Electrical service for the unit. The proposed cost is $119,181.37, which is$7,436.72 more than what is remaining from the arena improvement project. The cost has increased because of including electrical service, sales tax, and the heating for the bleacher and team rooms were lower than the estimate. To cover the shortage of funding, staff is proposing to use the money contributed from Farmington Youth Hockey Association. The City received $10,000 in 2012 ($5,000 for capital projects and $5,000 operating costs). In 2013 the City received another $10,000 (this will be over ten years). So there is$10,000 to be used for capital projects. There would still be $2,500 remaining from the Youth Hockey contribution. The proposal for the team rooms five and six heating was from Metropolitan Mechanical Contractors. The proposal to add the dehumidification system is included to allow heating and cooling of these team rooms and remove humidity. The cost is $25,600. MOTION by Fogarty, second by Bartholomay to approve the agreement with Metropolitan Mechanical Contractors. APIF,MOTION CARRIED. The proposal for the bleacher heating system was from MK Mechanical Services. The cost is $22,000. MOTION by Fogarty, second by Bonar to approve the agreement with MK Mechanical Services. APIF,MOTION CARRIED. The proposal for purchase of the dehumidification system was from Becker Arena Products. The cost is$41,611.37. This system will allow for summer ice. MOTION by Bartholomay, second by Fogarty to approve the agreement with Becker Arena Products. APIF,MOTION CARRIED. The proposal for the labor, gas piping, and duct work was from Yale Mechanical for$21,685. MOTION by Fogarty, second by Bonar to approve the agreement with Yale Mechanical. APIF,MOTION CARRIED. The proposal for electrical service was received from Helm Electric for$8,285. Councilmember Fogarty asked if the power source could be accessible both inside and outside on the east side of the building. MOTION by Fogarty, second by Bartholomay to approve the agreement with Helm Electric. APIF,MOTION CARRIED. The dehumidification system will be installed in late summer. b) 2012 Financial Operating Report-Finance General fund revenues were$534,941 more than budgeted due to delinquent property taxes being received. Intergovernmental revenues were higher than budgeted. The City received $95,000 at the end of 2012 from the sale of the old senior center building. Expenditures were$35,482 less than budgeted due to conservative spending. Transfers out were higher than budgeted due to approving $320,000 being transferred into the arena to eliminate the negative fund balance in that fund and$51,000 was transferred into the private capital projects fund to restore the cash balance in that account. Finance Director Hanson reviewed 11 Council Minutes(Regular) May 6,2013 Page 5 budgets for all the funds and revenues were slightly more than budgeted and expenses less than budgeted. Liquor revenues at the downtown store increased due to traffic from the grocery store. Actual expenses were less in both stores due to a reduction in rent. There is a combined net income before transfers of $281,000. Councilmember Bonar asked about the depreciation model for infrastructure. Staff noted it depends on the fixed asset and the depreciation policy does need to be reviewed. Councilmember Bonar asked if we have a good sense of the cost of borrowing each year to make up for the negative balances. Finance Director Hanson stated we don't because we pool funds,but she has been working on this item. City Administrator McKnight noted there is a cost to pooling funds because we are unable to invest that money because we have to use it to pay the bills. Councilmember Fogarty noted at the end of 2012,our fund balance is at 31%of budgeted. City Administrator McKnight stated we have a$10 million general fund budget for 2013, if we had $2.7 million at the end of 2012,the fund balance would be around 25%. Councilmember Fogarty asked if we get closer to the 35% the state requires,will we eliminate the negative fund balance. Finance Director Hanson stated if we truly reach 35%, yes. However, in January we had to write off$566,000 of that for the fire truck due to governmental accounting rules as that money is no longer available to spend. We have cleaned up all negative balances, and all interfund loans have been paid. Councilmember Bartholomay noted the arena has a positive balance rather than negative. Parks and Recreation Director Distad commended Supervisor Jeremy- Pire for operating the arena and holding down costs without compromising safety and cleanliness. Councilmember Bartholomay asked that a thank you be extended to all staff for their role in the budget. c) 2013 First Quarter Financial Report-Finance Through the end of March revenues and expenses should be at 25%of the 2013 budget. General fund revenues are at 3.2%due to the timing of tax payments. General fund expenditures are 28.4%.of budget. This is ahead of budget and more than 2012 expenditures at this time. The reasons are because of the fire truck for$566,000 which results in a decrease in the general fund balance. The loan to the water fund for this truck will be repaid over the next five years. The second reason is due to the harsh winter and increased snow removal expenditures and utility costs. So staffing is more transparent,more time is charged to the general fund which is offset by operating transfers from specific funds. Finance Director Hanson reviewed revenue and expense line items. Both liquor stores met their gross profit margin benchmark of 25%for the year. The combined profit for the two stores totaled 3.6%of sales, less than the 6.5%benchmark. This is due to the dram shop insurance premium in the first quarter. Depreciation will be allocated to each of the stores monthly. The first quarter includes three months rent for 2013, rather than only two months in 2012. Revenues and expenses for 12 Council Minutes(Regular) May 6,2013 Page 6 the enterprise funds are all in line with budget. The fund balance drops dramatically from the end of December 2012 to the end of March 2013 due to writing off the new fire truck. 11. UNFINISHED BUSINESS 12. NEW BUSINESS 13. COUNCIL ROUNDTABLE Councilmember Fogarty: Dew Days is coming. On May 10, 2013, at 6:00 p.m.there will be a Farmington Royalty float unveiling at the high school. Following that there will be a meet the candidates event and after that there will be an ice cream social. Dew Days buttons are for sale. Superintendent Jay Haugen will be co-hosting the pageant with Councilmember Fogarty this year. She is advocating that a City vehicle be used to pull the float in parades throughout the season. City Administrator McKnight will be providing information on the insurance. Councilmember Fogarty noted this is a promotional piece for the community. Councilmember Bartholomay: Curbside clean-up is being held and residents should check the website for their pickup day. Hydrant flushing is taking place this week. He attended a Yellow Ribbon enlistment dinner tonight. Councilmember Bonar: Spoke about the citizen-led EDA he and Mayor Larson are part of. There is a considerable amount of activity occurring regarding business incentive programs. There is also an outreach group that is working on business retention and attraction. On a future agenda will be the design of Vermillion River Crossing. We have a good group of citizens on the EDA. Mayor Larson: He and Councilmembers attended a Yellow Ribbon enlistment dinner tonight where recruits going into the military were recognized. It was well attended by the City, school and residents. He asked everyone to shop local. He thanked Family Fresh Market and liquor store staff for the cross-marketing they are doing through advertisements. It shows good teamwork between the City and private industry. He encouraged residents to show up for the float unveiling on Friday. 14. ADJOURN MOTION by Fogarty, second by Bartholomay to adjourn at 8:07 p.m. APIF,MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 13 Council Workshop Minutes May 13,2013 Mayor Larson called the workshop to order at 6:30 p.m. Present: Larson, Bartholomay, Bonar, Donnelly(arrived 6:35 p.m.), Fogarty Also Present: David McKnight, City Administrator;Robin Hanson, Finance Director;Brian Lindquist, Police Chief;Randy Distad,Parks and Recreation Director;Kevin Schorzman, City Engineer;Todd Reiten, Municipal Services Director;Brenda Wendlandt, Human Resources Director;Cynthia Muller, Executive Assistant MOTION by Fogarty, second by Bartholomay to approve the agenda. APIF,MOTION CARRIED. The purpose of the workshop was to discuss 2013/2014 goals. Councilmember Bonar stated Council's attempt when setting the goals was to find something that is specific, measurable, achievable, realistic and timely. He felt the Council was missing direct feedback from staff. He noticed some gaps and that there was no mention of police and fire in the goals which represent nearly 50%of the budget. The greatest challenge any Council or administration has is communication to the people we serve. The basic goal of fire and police is to protect and serve. He asked Fire Chief Pietsch about public outreach to the community. Fire Chief Pietsch stated they hold 20—30 community outreach programs through community events and schools. He has implemented a program called PIER(public information, education and resources). Firefighters have to earn seven points each year and are based on time frames, events and how much time they put in. Recruitment of firefighters is becoming a huge issue as 50%of the membership has served five years or less, and 5%has served 20 years or greater. He is concerned that they are young and inexperienced and also there are several people that could retire at any time and to fill those positions with someone who has experience is a concern. Police Chief Lindquist stated they operate 24/7 and public contact is part of the daily routine. They do not set aside specific time for public outreach as opportunities always exist. Councilmember Bonar asked Parks and Recreation Director Distad if he has considered doing virtual tours on the website to show our park amenities. Parks and Recreation Director Distad stated they do not have virtual tours since that is a technology question about cost. We do include photos of parks and a list of amenities on the website. There are 21 developed parks. Councilmember Bartholomay wanted to know what each department foresees for innovative ideas or large, upcoming costs. He asked if it would be helpful for Council to give a top percentage for the budget. Staff agreed a percentage would be very helpful. He liked the idea for the virtual park tours. City Administrator McKnight stated all department heads have seen the goals and a third of them are already completed. Their goals are the goals set by Council. 14 Council Workshop Minutes May 13,2013 Page 2 Mayor Larson asked department heads if there are any questions. Council doesn't know where the levy will be yet. Are we missing anything? Are there things we have talked about that we can put off a couple years? Parks and Recreation Director Distad felt the park and rec items are too vague. He doesn't know what options Council is looking for as far as the pool. Does it mean a new pool? Replace the existing pool? Do something with the existing pool? Get rid of the pool? Relocate the pool? The Parks and Rec Commission has started looking at options, but more direction for them would be helpful. The other item is the Rambling River Center and increasing usage. Does that mean 5%, 10%, 100%? Staff needs more direction. Mayor Larson stated since the seniors have moved to the new location we have talked about having a teen center along with the senior center and it hasn't gone anywhere. He has heard staffing for teens is the biggest reason. When we talk about economic development,we talk about doing it realistically. Are we being realistic and can seniors and teens get along over there? Parks and Recreation Director Distad stated they are doing teen programs at the senior center and have partnered with the Library. There have been one to three kids show up and it has been marketed through the Library and the City News and Recreation Guide. It is a tough group to program for. Mayor Larson asked what would be needed to make it a teen center. Staff stated it would be nice to have a dedicated facility just for teens. That doesn't mean we cannot do teen programs there. We will be having a dance with a DJ at the senior center this summer. Mayor Larson asked if it is realistic to have a senior/teen center and if so,what will it cost? Parks and Recreation Director Distad stated it does work out as far as scheduling because seniors leave at 3:30 p.m. and that is when kids are getting out of school. The kids actively involved in things, don't have a need for a teen center. Kids that are not actively involved, don't want to be there and want to go somewhere else where they are not around other adults or have structure. We don't have things that are enticing for them to come. The computer lab is not large enough to accommodate them and now they have their own Ipads. Mayor Larson asked when Council says to increase membership, we will not be able to do it through teens? Parks and Recreation Director Distad stated they are increasing rentals. We are booked through June for weekend rentals. This puts a crimp in allowing time for teen programs. Do you want revenue from rentals or do you want programs for teens? Mayor Larson asked if when we talk about bringing teens over there are we wasting our breath? Staff stated as far as trying to make the building a teen center, it will not work. Doing teen programs there might be successful. Councilmember Bonar noted we do an exceptional job providing programs for our seniors in that building. The school district has a mission providing for the students. The most under represented group are the people between the teens and the seniors. How do we expand the use of the Rambling River Center for those that are beyond their teens, but not 55? He asked if we should add an outdoor element to the building. Is it constrained by its size? Council wants to use the building to its fullest extent. Parks and Recreation Director Distad stated we would be getting into Community Ed's area. Mayor Larson suggested that facility may work for some of their programs. Mayor Larson noted the pool will close itself eventually. He recalled the survey where residents did not want a referendum. Parks and Recreation Director Distad noted the 2010 survey showed 15 Council Workshop Minutes May 13,2013 Page 3 addressing parks and trails as two important items. Mayor Larson felt staff and the Park and Rec Commission should do the work on options for the pool. Councilmember Fogarty stated the community wants the pool so we need solutions. We can't build a waterpark there, so do we want to replace it as is, or do we turn it into a splash pad area. She wanted options brought to Council and the community before the pool is no longer workable. Our community is not ready for something larger. Maybe we do want to upgrade it and keep it as is, but we need to know costs. Finance Director Hanson noted if we replace the pool, we would need a referendum. To do it in an even year,we could hold the referendum next year, and put it in the 2015 budget so you would have the money to build it in 2016. It is not a big window, even if it lasts four or five years. Parks and Recreation Director Distad mentioned the rental rates. They have reviewed several places and rates are all over the board as capacities are different and facilities are different. By competitive, do you want us at the bottom, middle, or close to the top? Councilmember Fogarty stated her concern is that she wants the facility used, but wants it to cover its cost. Some of those facilities are more than covering their costs and therefore discouraging use. It sits empty most nights and weekends. If it is booked through June,they must not be entered because she is not seeing it booked. If the community knows its there and it is affordable they will continue to use it. It sounds like programming for teens will be difficult, but that doesn't mean it shouldn't lean more towards a community center. She has been getting the feeling for a long time that there are some territorial problems over there, where no one wants anyone in it except for the seniors during the day and that is a frustration. She wants the whole community to have access to those meeting rooms. She wants it to cover its costs. If we are going to open it at night so people can get in we need to cover janitorial costs and electricity. Sometimes she feels we are pricing ourselves out deliberately so it's not used. We should not make a huge profit, but that should be helping cover the cost of the center. If it is rented all the time, we shouldn't have to have line item budgets for it every year to make sure it breaks even. Councilmember Bonar stated our competition is emptiness. Councilmember Fogarty agreed and as long as it is covering costs to have people in there, use it. They are already paying for it through taxes. It is just like any other facility we have. She wants it used and wants the community to feel like it is property they can use. It is the seniors' territory during the day because of their programming. She is talking about nights when it sits empty. She realized we use meeting rooms some nights, but wants people in there all the time. Councilmember Bonar asked regarding the pool, has staff and the Park and Rec Commission considered whatever changes are made, is there a way to make it a 12-month facility. Staff noted maybe, but it has not been discussed. Councilmember Bonar asked if there would be an opportunity to foster a pool that would be a public/private venture. One of the great interests recently in economic development is to bring a hotel in. Is there something that the City could do with a developer that would meet both our needs and theirs? Staff would be open to that idea. 16 Council Workshop Minutes May 13,2013 Page 4 Councilmember Bartholomay asked about big ticket items for each department. City Administrator McKnight noted the CIP will have a big impact and the Fire Department has some big requests. Fire Chief Pietsch stated they have discussed rehabilitating station one as they have outgrown the meeting area. This is not needed today or even next year. When station one was built the thought was that the community would grow around it, but that has not happened. The current location may not be the best, because call times to the east side of town are lagging. Does it make sense to rehab a building when it doesn't make sense to be there? The Fire Department could do some research and suggested the other side of Chippendale. City Administrator McKnight noted the police and fire have equipment requests. Councilmember Bartholomay asked if we need servers in IT. Human Resources Director Wendlandt stated the next replacement is in 2015 or 2016. We have an internal service fund for them. Councilmember Bonar asked if there is a CIP for technology and do we have a good grasp on what our resources are and where they are on a timeline? Staff stated all servers are on a four year replacement schedule. Our computers had a replacement schedule, but due to budget issues we went to a replace as needed for desk computers. Everything else is on a schedule. We have a lot of money in maintenance agreements to provide for software upgrades. Video cameras are upgraded constantly. Most of the software has a maintenance agreement. Recently we switched how we buy Microsoft licensing. Previously we bought the license with the computer. Now we buy it in bulk so if a computer dies, we don't have to buy new software. As part of the licensing agreement we receive upgrades. Councilmember Bonar asked about communications and if we are at the point where we should consider developing an app? We do a lot of outreach through Facebook,Twitter, and Nixle and hard copies, but is that where communication is going where people have apps on phones. Human Resources Director Wendlandt felt we will see more of that happening, but was not sure if the City wanted to get into the business of developing an app. She felt there will be opportunities where we can have an app someone else has developed. Our challenge with communications and technology is right now we are doing a lot of things and maintaining them. We don't have the staff to do all of it really well. Where the need will be is we will have to split and have a traditional communications person and have a communications person dedicated to the web and social media. Right now we don't have that. If it is a staff person or a consulting person,that is where the cost will be. Councilmember Bartholomay noted the Police Chief had requested three squad cars and received two. Police Chief Lindquist stated they have re-arranged the higher mileage officers and split them up with lower mileage officers and found ways to make the cars last longer. Next year it will not be less than two vehicles, and he is not sure yet about three vehicles. This year we received the cars early. Next year it could be July or August before they are received and if that happens, cars will have 120,000 miles on them. Police Chief Lindquist stated over the last three years the police have tried to keep the budget as flat as possible, if not a reduction. Things done on an annual basis were set aside such as evidence recording equipment which is in the budget this year;also, general maintenance of the building. Our DCC communication needs with radios have a life expectancy of eight to ten years. We are seeing a problem with batteries. The handheld radios are$2,500-$5,000. It is prudent now to set money aside for them. There is change in technology with computers in the cars. 17 Council Workshop Minutes May 13,2013 Page 5 City Engineer Schorzman shared some observations. Everything discussed is money. The levy as been the same for the last three years. We go through this process time and time again exactly like now. He challenged Council to try a different process this year. He suggested Council give feedback to City Administrator McKnight on what they can live with at the beginning of the process, stick to it, and let staff develop the budget after we know what Council can live with. Councilmember Donnelly asked what do we think the taxpayers will tolerate? Councilmember Fogarty stated the vast majority have seen a tax decrease in the last couple years. Mayor Larson stated we still have a City to protect and maintain and it takes a lot of money to do that. These are real needs we have to consider. Finance Director Hanson stated if you wait, it is more expensive. City Engineer Schorzman stated looking at the operation piece of the levy,taking debt out,what do we operate in the general fund? The average cost per person is$266/year;this is what they pay for all the services in the general fund. That is$22/month. That is less than a cell phone plan or a cable bill. They get police and fire protection, roads,parks,trails, etc. for less than a cell phone. When we talk about huge numbers everyone gets excited, but$5/month equates to $35,000, as there are 7,000 homes. For the year that would be$420,000. The things we support from the general fund are a necessity. Councilmember Bonar stated above operational costs we have debt. There are facilities and infrastructure in place because of that. He asked if we should consider structuring a debt or investment policy to help guide us and future Councils. Finance Director Hanson stated the Council has an investment policy and we can look at a debt policy. The basic principal would be what we talked about last fall which is to levy for it in one year, collect the next year, and pay it the third year. If we do that over the next five to ten years we will right the ship. Right now we are paying debt service and we won't get the money until after the fact. We need to systematically make decisions that will move the general fund into a positive without having to borrow from other funds and we need all the debt service funds to stand on their own. Council has taken great steps with seal coating,trail and building maintenance, and now we need to do that with the CIP. We need to systematically accumulate funds over time to address the needs as they arise. Councilmember Bonar noted Minneapolis did a survey and the greatest impact had to do with snow plowing. It is one of those basic everyday services. What Municipal Services staff does is very apparent, but people drive by it everyday and pay no attention. He asked if a street sweeper is still on the radar. Municipal Services Director Reiten stated the street sweepers are a 1999 and a 2001;the 1999 would be replaced. We will put it in the CIP. In the CIP for vehicles he sees it six years out before starting. As far as a plow truck,that would be a general fund item, but how much do other departments use the truck? Perhaps it shouldn't all hit the general fund. He is also concerned about the situation if the county runs out of salt. The preliminary budget number is at a 5% levy increase. Mayor Larson asked Councilmembers to provide a number they would be comfortable with. He suggested 3—5%. City Administrator McKnight stated the 5%does not include a change in the fiscal disparities number from 2013, and LGA is not included. LGA would be tied to one time purchases. The 5% increase funds the CIP. Councilmember Fogarty wanted the lowest number to fund the CIP. She did not like 5%, but wants the CIP funded. Councilmember Bartholomay stated his top number would be 5%to fund the CIP and meet our needs. Councilmember Bonar stated official budget deliberations begin in June. He did not have a number yet as he wants to do some homework. Once he picks a number there will be only a little sway to the left or right. Mayor Larson stated once we decide 18 Council Workshop Minutes May 13,2013 Page 6 on a number, it needs to be the same number in December. Councilmember Donnelly stated his top number is 5%. We held taxes the same for four years. City Administrator Update—City Administrator McKnight and Police Chief Lindquist will be meeting this week with the new owner of Carbone's regarding an outdoor concert this summer. This is the last summer there will be an outdoor concert. Council agreed with staff putting restrictions in place for this event rather than writing an ordinance. The projector in the Council chambers has been discussed in the past. City Administrator McKnight asked Council if they would prefer a large TV on the wall or individual small screens at the Dias. After some discussion, Council reached a consensus for City Administrator McKnight to obtain costs for a large TV on the wall. Cable funds will be used for the purchase. Police Ride-a-longs—These are no longer done due to liability mitigation. Police Chief Lindquist stated the police have three responsibilities—citizens, cops, City. Liability mitigation in ride-a-longs hits all three of these. If someone is killed, you never stop paying for it. All of the DVS information is available in the cars. If there is a domestic, you cannot take the rider in the house with you. The computer remains on, and anyone can access information. It is not a spectator sport, but it has been treated as such. If you were aware a potential problem existed and you did nothing to address it,the courts frown upon that. Councilmember Fogarty felt there are a lot of college age students looking at law enforcement and this would be a great opportunity for them. However this is set up, she does not want that opportunity lost for them. Police Chief Lindquist stated the liability concerns are the same across the board. It is a great public relations tool, but he can give them the same experience by watching the video camera footage from the squad cars. He has to mitigate liability wherever he can. We used to do a lot of things that we probably should not do now. When he told his officers there would be no more ride-a-longs,there was no resistance. If he tells an officer to take a citizen along, and the officer says no, it is not safe,what does he do? Councilmember Fogarty felt he had a lot of influence with his officers. Police Chief Lindquist stated his responsibility is to get them home safe every • night. If someone needs help,they will go. They cannot say I have a rider with me. Councilmember Bartholomay stated Apple Valley and Northfield allows riders and he felt we should too. Have them sign a strong liability waiver and set parameters. A lot of cities do background checks before people ride. Police Chief Lindquist stated we all do background checks and that will not stop them from having access to the computer. Councilmember Donnelly was fine with no ride-a-longs and understood the liability. Police Chief Lindquist stated a lot of people have focused on data and the wrongful sharing of data. If someone sees or hears something they shouldn't,we have put that data out there. There are not a lot of requests for ride-a-longs. Once in awhile we get a request from someone doing an internship and if we can accommodate them we will. Councilmember Donnelly felt the less opportunity we provide for accidents,the better. Councilmember Bonar stated his greatest interest is a broad and consistent outreach to the public. Being seen as individuals as well as officers goes a long way in serving the public. Police Chief Lindquist stated officers are tied to school events, or when officers stop at a gas station they have a lot of interaction with residents. There are a lot of opportunities with contact. Public interaction is taking place, Council was just not aware of it. Mayor Larson suggested a compromise with law enforcement students and cops. Police Chief Lindquist stated it is an all or nothing deal. It doesn't matter why they are there. This is not a 19 Council Workshop Minutes May 13,2013 Page 7 good choice for us and is not the right vehicle for public relations. Police Chief Lindquist will prepare a video to show Council. MOTION by Fogarty, second by Bartholomay to adjourn at 8:20 p.m. APIF,MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 20 0itti City of Farmington i *j 430 Third Street Y,' Farmington,Minnesota 651,280.6800•Fax 651.280.6899 w ww.ci.tgnningtim.mn.us TO: Mayor, Councilmembers, City Administrator FROM: Cynthia Muller, Executive Assistant SUBJECT: Temporary On-Sale Liquor License—Farmington Liquors DATE: May 20, 2013 INTRODUCTION Farmington Liquors is requesting a Temporary On-Sale Liquor License for a wine tasting event to be held June 13, 2013. DISCUSSION This event will be held at the Flavors of Farmington in the Rambling River Center parking lot. Per State Statute, a Temporary Liquor license must first be approved by the City and then forwarded to the State for approval. BUDGET IMPACT The State of Minnesota waives all fees for Temporary Liquor Licenses for non-profit organizations.Therefore,the City has not established a fee for a Temporary On-Sale Liquor License. ACTION REQUESTED Approve the attached application for a Temporary On-Sale Liquor License for Farmington Liquors, for a wine tasting to be held at Flavors of Farmington, Rambling River Park,on June 13, 2013. Respectfully submitted, Cynthia Muller Executive Assistant 21 �*r 0• MinnesotaDepartment ofPublio Safety *;� �: �� ALCOHOL AND GAMBLING ENFORCEMENT DIVISION 4.,!, -,/,....:::,1:.' ,� �� 444 Cedar Street Suite 222,St.Paul MN 55101-5133 `. ,.., Nov r' ' (651)201-7507 Fax(651)297-5259 TTY(651)282-6555 t WWW.DPS.STATENN.US APPLICATION AND PERMIT FOR A I TO 4 DAY TEMPORARY ON SALE LIQUOR LICENSE TYPE OR PRINT INFORMATION NAME OF GANIZATION DATE O GANIZED TAX EXEMPT NUMBER 7 i7/%y�f�% 4 'I0/..3 / ∎- D f ozzc -"-2° STREET ADDRESS v CITY STATE ZIP CODE /Di G�%/27 i/,-.,� �/r.,0„?j/o,,l /2,-w >"S.--v.z N RSOl f •' r'APPLICATION BUSINESS PHONE HOME PHONE ( mot/ --/, / ATES LIQUOR WILL BE SOLD TYPE OF ORGANIZATION J: • T• t I• • .ri )..•44!• - ORGANIZATION OFFICER'S Yi' ADDRESS /o y G—/ ,� --, ,� �', ORGANIZATION OFFICERS NAME ADDRESS r (/ ORGANIZATION OFFICER'S NAME ADDRESS Location license will be used. If an outdoor area,describe / / A ....... ,./ '..- , a r2.44,....-" G vt--- a,/4(:-/' e...2 --e. "../., r IP..e J" 4 << , ‘'' 9t) - 4'tea Will the applicant contract for intoxicating liquor service? If so,give the name and address of the liquor licensee providing the service. Will the applicant liquor f iability insurance? If so, lease provide the carrier's name and amount of coy a . 495„ � C/'/72 474,0222 s' ,5-- ,5--r,.ms l..Avp,)(.q u,., oc.C_r e�a-r-4X /,..5< r C �7� (APPROVAL APPLICATION MUST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL&GAMBLING ENFORCEMENT CITY/COUNTY DATE APPROVED CITY FEE AMOUNT LICENSE DATES DATE FEE PAID SIGNATURE CITY CLERK OR COUNTY OFFICIAL APPROVED DIRECTOR ALCOHOL AND GAMBLING ENFORCEMENT NOTE:Submit this form to the city or county 30 days prior to event. Forward application signed by city and/or county to the address above. If the application Is approved the Alcohol and Gambling Enforcement Division will return this application to be used as the License for the event PS-09079(12/09) 22 j EARA� City of Farmington „ 430 Third Street 1 Farmington,Minnesota 651.280.6800•Fax 651.280.6899 W ww.Cl.tBlCI1111g1A11]_Tllll_LLti TO: Mayor, Councilmembers, City Administrator FROM: Kevin Schorzman, P.E., City Engineer SUBJECT: Water Restriction Enforcement Worker DATE: May 20, 2013 INTRODUCTION/DISCUSSION To encourage compliance with the City's watering restrictions, each year the Water Board funds a temporary position to enforce restrictions on outdoor watering. The restrictions are in-place to ensure that there is an adequate water supply for fire suppression and domestic use during the summer months, as well as to promote conservation. At the March Water Board meeting, the Board authorized staff to advertise for the temporary Water Restriction Enforcement Worker position. Staff reviewed the applications that were received, and Sean Donohue was recommended for the position. At the May Water Board meeting, the Board approved the hiring of Mr. Donohue to serve as a Water Restriction Enforcement Worker for this season. This will be Mr. Donohue's second year serving in this capacity. BUDGET IMPACT The rate of pay for this position is $12.00 per hour and the position will be funded from the Water Fund. ACTION REQUESTED, None. Respectfully submitted, Kevin Schorzman, P.E. City Engineer 23 ��``� iy��► City of Farmington ��o'd 430 Third Street w'.,!X"- Farmington,Minnesota a4 '' 651.280.6800•Fax 651.280.6899 7''"" * wwwcifarmington.mnus TO: Mayor and City Council FROM: David J.McKnight,City Administrator SUBJECT: Farmington Royalty use of City Vehicle DATE: May 20,2013 INTRODUCTION During the City Council roundtable at your May 6,2013 meeting the request to allow the use of a City vehicle by volunteers to pull the Farmington Royalty float in 15-30 parades/events was brought up for discussion. DISCUSSION City staff has discussed this issue in the past and advised against this use due to liability reasons. If the City Council is comfortable taking on the liability of a volunteer driving a city vehicle to and from different cities and in parades,the city's insurance agent requests that a list of names be submitted to the City Administrator well ahead of time so driver's license records can be reviewed. Our insurance agent and I will review the records to see if there are any concerns and make decisions in the best interest of the City. Furthermore,our vehicles are meant for City business first and foremost. The use of any vehicle for this request cannot interrupt its use in the course of a normal city work day. In addition,the full burden of getting access to a City vehicle and returning it to a designated spot immediately after its use will be placed on the representatives of the Royalty group and not cause additional work or work outside of normal business hours for any City employee. BUDGET IMPACT The use of a City vehicle for this purpose will have an impact on the budget in terms of fuel use and potentially with increased risk of exposure to claims. ACTION REQUESTED If the City Council is comfortable assuming the risk of allowing a volunteer to use a City vehicle to pull the Farmington Royalty float and the cost of the fuel/potential increase liability costs for the vehicle use,a motion should be made to allow the use of a City vehicle for this purpose as 24 long as the drivers are preapproved by the City Administrator and/or city insurance agent. If you have any questions please let me know. Thank you for your time on this important matter. Respectfully submitted, David J.McKnight City Administrator 25 _ A4, City of Farmington '`' 430 Third Street ), '.,, 1 Farmington,Minnesota 651.280.6800,Fax 651.280.6899 "'.4p7po w W w.ci.faciningtoxuntLUs TO: Mayor, Councilmembers, and City Administrator FROM: Brenda Wendlandt, Human Resources Director SUBJECT: Approve Job Evaluation(Wage) Study Consulting Agreement DATE: May 20, 2013 INTRODUCTION This memorandum requests approval of the job evaluation (wage) study consulting agreement with Fox Lawson&Associates. DISCUSSION On March 18, 2013, the Council authorized Fox Lawson &Associates to conduct a job evaluation(wage) study for the City. This study will ensure that positions are accurately evaluated and classified, compare positions to the external market and to internal equity, and to comply with State and Federal laws (FLSA, Pay Equity, etc.). The total cost of this project will not exceed $22,000.00. The reason this project has a not to exceed amount is due to the fact that some areas of the project may not be as labor intensive as anticipated. Staff will make every effort to control costs while ensuring a high quality result. This agreement has been reviewed by the City attorney. BUDGET IMPACT The cost of this project will be paid for out of the fund balance in the Employee Expense fund. ACTION REQUESTED Approve the Job Evaluation Study consulting agreement with Fox Lawson and Associates. Respectfully submitted, Brenda Wendlandt Human Resources Director cc: File 26 CONSULTING AGREEMENT This Consulting Agreement("Agreement") is made by and between City of Farmington, MN ("City")and Fox Lawson&Associates, a Division of Gallagher Benefit Services, Inc. ("Consultant"),with offices in St. Paul, MN and Phoenix,AZ. The Minnesota office is located at 1335 County Road D Circle East,St. Paul, MN 55109-5260. WITNESSETH WHEREAS, Consultant has substantial skill and experience in the study and development of compensation systems; and WHEREAS, City desires to hire Consultant to conduct a job evaluation and compensation system study the City jobs (not including Police and Fire positions)and the Consultant desires to provide such services to City on the terms and conditions contained in this Agreement. AGREEMENT NOW THEREFORE, for good and valuable consideration,the receipt and sufficiency of which is hereby acknowledged,the Parties agree to the terms and conditions set forth herein. ARTICLE 1. STATEMENT OF WORK Consultant shall provide professional consulting services (the "Services")as outlined in its proposal to City to conduct an compensation system study dated March 11, 2013, a copy of which is attached hereto and is incorporated by reference (the"Proposal"). In summary we will provide the following services to the City,please see the Proposal for the project plan: ▪ Review existing and/or updated job descriptions to verify or revise their DBM evaluation to including verifying exempt and non-exempt status and/or making other recommendations to ensure compliance with FLSA and Pay Equity. -We will complete this in Phase II of the project plan. ▪ Provide a wage/labor market analysis using already existing market data from published sources. This includes meeting with the City's labor management committee for input on appropriate comparable cities and a discussion of the process. -We will complete this in Phase III of the project plan. 27 Using the market data analysis, development of a pay structure using a Step system that assures internal and external equity; and compliance with the State Pay Equity Compensation Standards. -We will complete this in Phase III of the project plan and finalize in Phase IV. Provide recommendations regarding a transition and implementation plan. - We will complete this in Phase IV of the project plan Consultant shall receive technical direction and review from, and shall report to, Brenda Wendlandt or such other person(s) as City may designate in writing from time to time. ARTICLE 2. COMPENSATION In consideration of the Services provided by Consultant hereunder,the City will pay to Consultant a professional fee of up to, and not to exceed,$22,000,payable as set forth in Article 3. ARTICLE 3. PAYMENT Consultant shall invoice City on study initiation for one half the total fee. On completion of the study,the remaining fee will be invoiced. Any invoiced amounts not received by Consultant within thirty(30)days of the applicable invoice date shall incur late charges at the rate of the lesser of one and one-half percent (1.5%) per month or the maximum rate allowed by law. ARTICLE 4. INDEPENDENT CONSULTANT STATUS It is understood and agreed that Consultant will provide the Services under this Agreement as an independent contractor and that during the performance of the Services under this Agreement, neither Consultant nor any of Consultant's employees, agents or representatives will be considered an employee of City within the meaning or application of any federal,state or local laws or regulations including, but not limited to, laws or regulations covering unemployment insurance,old age benefits,worker's compensation, industrial accident, labor or taxes of any kind. Neither Consultant nor any of Consultant's employees, agents or representatives shall be entitled to any benefits that may be afforded from time to time to City's employees,including without limitation,vacation, holidays,sick leave,worker's compensation and unemployment insurance. Further,City shall not be responsible for 2 28 withholding or paying any taxes or social security for or on behalf of Consultant or any of Consultant's employees,agents or representatives. Consultant shall be fully responsible for any such withholding or payment of taxes or social security for Consultant and any of Consultant's employees,agents or representatives. ARTICLE 5. ASSIGNMENT AND DELEGATION Neither party shall assign or delegate this Agreement or any rights, duties or obligations hereunder without the express written consent of the other party. ARTICLE 6. ENTIRE AGREEMENT This Agreement and the attached exhibits and schedules represent the entire agreement between the parties with respect to the subject matter hereof. Should there be a conflict between the terms of this Agreement and any of the attached exhibits or schedules, the terms of this Agreement shall control. This Agreement may be amended only by written instrument signed by both parties. ARTICLE 7. HOLD HARMLESS 7.1 Consultant shall indemnify,defend, and hold City, its officers,employees and agents harmless from and against any and all damages, expenses,costs and liabilities, including attorney fees,arising out of Consultant's gross negligence, intentional omissions or wrongful conduct in the course of performance of this Agreement, including,without limitation,the breach or failure of the warranties and representations set forth herein. The Consultant agrees this indemnity obligation shall survive the completion or termination of this Agreement. 7.2 Except as otherwise provided under Section 7.1, should the Consultant be requested to provide testimony in court or with regard to litigation brought against City for work performed by the Consultant pursuant to this contract,City shall reimburse the Consultant for time and expenses incurred at the firm's established hourly billing rates for the individuals involved. ARTICLE 8. CONFIDENTIAL INFORMATION 3 29 8.1 Consultant shall not use,duplicate or divulge to others any confidential information disclosed to Consultant by City in the course of performance hereof without first obtaining written permission from City. City shall not use,duplicate, or divulge to others, any confidential information including,without limitation,trade secrets and private sector compensation data that is disclosed to City by Consultant in the course of performance hereof without first obtaining written permission from Consultant. Confidential Information shall not include information that(i) is in or which enters the public domain through no fault of the party receiving such disclosure, (ii) is rightfully disclosed by any third party or(iii) is previously known to the party receiving the disclosure. 8.2 The Consultant agrees to maintain data received from the City in the same manner as the City as required under the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13. The provisions of Section 8.1 shall not apply where release of data is required under the Minnesota Government Data Practices Act. ARTICLE 9. TERMINATION AND TERM Either Party may terminate this Agreement by giving written notice to the other,which Inotice shall be effective 30_calendar days following receipt. Consultant shall be compensated as provided herein for all Services performed and expenses incurred prior to the date of Itermination_ Unless earlier terminated,this Agreement shall be in effect from April 1, 2013 through December 31, 2013. ARTICLE 10. WARRANTIES AND REPRESENTATIONS Consultant warrants and represents to City as follows: (i)that neither the execution, delivery nor performance of this Agreement constitutes a breach or violation of any contract or agreement to which it is a party or by which it is in any manner bound, (ii)that it will perform any and all Services hereunder in a professional and workmanlike manner in accordance with generally accepted industry standards. Consultant shall correct any errors or defects contained in any report or deliverable item required in connection with the Services at no additional cost to City. Under no circumstances 4 30 (Including negligence and fundamental breach)will Consultant be liable to City or any other person for any special,consequential or incidental damages arising out of or relating to this Agreement or any Services furnished under this Agreement,even if Consultant has been advised of the possibility of such loss or damage. ARTICLE 11. APPLICABLE LAW This Agreement shall be governed by, and construed in accordance with,the laws of the State of Minnesota ARTICLE 12. LIABILITY INSURANCE Consultant agrees to maintain commercial general liability insurance in a minimum amount of one million dollars ($1,000,000.00) per occurrence;two million dollars$2,000,000 annual aggregate. The policy shall cover liability arising from premises, personal injury, advertising injury, and contractually assumed liability. The City shall be named as an additional insured by endorsement. In addition, Consultant shall maintain general liability insurance and one million dollars($1,000,000.00) in professional liability insurance throughout the term of this Agreement in such a form and manner as to provide coverage for any and all errors and omissions made during performance of the Services. The Consultant agrees to comply with all applicable workers' compensation laws in Minnesota. Consultant shall, prior to commencing services,deliver to the City a Certificate of Insurance as evidence that the above coverages are fin full force and effect. ARTICLE 13. DUE DILIGENCE The Consultant agrees to proceed with performance of the Services with due diligence and complete the Services in a timely manner as provided in the Proposal unless completion is delayed by a cause set forth in the specifications and for which timely completion would be excused. ARTICLE 14. TAXES. 5 31 City is a tax exempt entity and, as such,shall not be responsible for payment of any taxes of any type whatsoever. ARTICLE 15. LICENSES, PERMITS, LEGALITIES. Consultant agrees to obtain any and all necessary permits or licenses required to perform the Services,to comply with all applicable laws, ordinances, regulations, etc., and to perform the Services in a legal manner. ARTICLE 16. CONTACT PERSON/NOTICES. The Consultant and City may be contacted through the individuals identified below. Either party may change contact people by notifying the other in writing of such change. All notices required under this Agreement must be in writing and must be given by registered or certified mail, postage prepaid,or delivered by hand at the addresses set forth below: CONSULTANT: CLIENT: FOX LAWSON&ASSOCIATES CITY OF FARMINGTON, MN Name: James C. Fox City Administrator Address: 1335 County Road D Circle East 430 Third Street St. Paul, MN 55109 Farmington, MN 55024 ARTICLE 17. REMOVAL OF REPRESENTATION. Should City reasonably object to an individual deployed on the project by Consultant, Consultant agrees to promptly replace the individual with someone reasonably acceptable to City. ARTICLE 18. FORCE MAJEURE. Consultant shall not be liable for any delay or failure in performing any obligation under this Agreement where cause for such failure or delay is beyond Consultant's reasonable control. 6 32 ARTICLE 19. SEVERABILITY Every provision of this Agreement shall be construed,to the extent possible,so as to be valid and enforceable. If any provision of this Agreement so construed is held by a court of competent jurisdiction to be invalid, illegal or otherwise unenforceable, such provision shall be deemed severed from this Agreement,and all other provisions shall remain in full force and effect. ARTICLE 20. BINDING EFFECT. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns. Any attempted assignment not in compliance with this paragraph shall be null and void. No third party beneficiaries are intended or shall be construed as created by virtue of this Agreement. ARTICLE 21. HEADINGS. The headings herein are for convenience only and are not intended to have any substantive significance in interpreting this Agreement. ARTICLE 22. AMENDMENTS. Any modifications or amendments to this Agreement shall require a written agreement signed by both Parties. ARTICLE 23. NONDISCRIMINATION. In the hiring of employees to perform work under this Agreement,the Consultant shall not discriminate against any person by reason of any characteristic protected by state or federal law. ARTICLE 24. OWNERSHIP OF DOCUMENTS. All reports,specifications,data, maps and other documents produced by the Consultant in the performance of services under this Agreement shall be the property of the City. ARTICLE 25. WAIVERS. The waiver by either party of any breach or failure to comply with any provision of this Agreement by the other party shall not be construed as, or constitute a continuing waiver of such provision or a waiver of any other breach of or failure to comply with any other provision of this Agreement. 7 33 ARTICLE 26. COUNTERPARTS. This Agreement may be signed in counterparts, each of which shall be deemed an original,and which taken together shall be deemed to be one and the same document. • 8 34 • IN WITNESS WHEREOF,the parties have executed this Agreement by their duly authorized representatives. FOX LAWSON &ASSOCIATES Fezesogivii T A Division of GBS ,- r• r, /! By: By: Name: James C. Fox Name:Todd Larson Title: Managing Director Title: Mayor S.- / 'dd 73 Date Date JMT/jmt/839761v4 9 b City of Farmington {'j a 430 Third Street r '„ � ,., Farmington,Minnesota ti y ��. 651.280.6400•Fax 651.280,6899 A 14:00'./ wwwca.anningtcm.mmun TO: Mayor, Councilmembers and City Administrator FROM: Randy Distad, Parks and Recreation Director SUBJECT: Adopt Resolution Accepting Donations to the Rambling River Center DATE: May 20, 2013 INTRODUCTION Donations have recently been received at the Rambling River Center from Vern and Nancy Page, the Coffee Guys and Happy Harry's Furniture. DISCUSSION Vern and Nancy Page have made a donation of$50.00 to the Rambling River Center. The Coffee Guys,which is a daily morning program at the Rambling River Center, have raised money and purchased and donated two floor fans to the Rambling River Center for use during programs and events. A donation was received from Happy Harry's Furniture in the amount of$133.66. This is from the program Happy Harry's Furniture started in 2011 in which a customer is able to select a charity of their choice to receive a donation from Happy Harry's Furniture. The Rambling River Center is one of the charities that can be selected. Happy Harry's Furniture then donates 10%of the sale to the charity. Happy Harry's Furniture has donated a total of$2,302.73 to the Rambling River Center since this program began in 2011. The donations made by Vern and Nancy Page and Happy Harry's Furniture will be deposited into the Rambling River Center's Capital Project Fund so it can be used for funding future capital improvement projects at the Rambling River Center. Staff will communicate on behalf of the City Council its appreciation to these donors for their recent donation given to the Rambling River Center. ACTION REQUESTED, Adopt the attached resolution accepting the donations that are identified above from Vern and Nancy Page,the Coffee Guys and Happy Harry's Furniture. Respectfully Submitted, Randy Distad Parks and Recreation Director 36 RESOLUTION NO. R27-13 ACCEPT DONATIONS OF $50.00 FROM VERN AND NANCY PAGE,TWO FANS VALUED AT $38.46 FROM THE COFFEE GUYS AND $133.66 FROM HAPPY HARRY'S FURNITURE TO THE RAMBLING RIVER CENTER Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota,was held in the Council Chambers of said City on the 20th day of May, 2013 at 7:00 p.m. Members Present: Larson, Bartholomay, Bonar, Donnelly, Fogarty Members Absent: None Member Bartholomay introduced and Member Bonar seconded the following: WHEREAS, a donation of$50.00 was received from Vern and Nancy Page; and, WHEREAS, a donation of two floor fans valued at $38.46 was received from the Coffee Guys; and, WHEREAS, a donation of$133.66 was received from Happy Harry's Furniture; 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 these donations. NOW,THEREFORE,BE IT RESOLVED that the City of Farmington hereby accepts with gratitude the generous donations made to the Rambling River Center totaling $50.00 from Vern and Nancy Page,two floor fans valued at$38.46 from the Coffee Guys and $133.66 from Happy Harry's Furniture. This resolution adopted by recorded vote of the Farmington City Council in open session on the 20th day of May, 2013. Mayor Attested to the: /`e day of May, 2013. 7p y Administra or e SEAL a1 a r m RP dl of M M N N N N N N m m 1O b N m m m m m m r N 0 O 0 0 O 0 O 0 0 0 00000000000000000 O o o po o 0 U j 0 �O_p O O O o O O O O O 000 O g 0 O O O O O 0 O I O O O C7 g a a a a O O O O O S 0 0 0 0 4 0 0 0 0 0 0 0 m . O O m CO 0 m y m 0 0 0 ce w w W W W W M O O O b O O O 0 w w w w w w y w w z ¢ o Z 42 Z 2 aa�+ QQ�+ aa Q U Cl U U U U Iu--1 c 0 N N W W K o=^ 5 5 5 5 5 W Z 2 8 w . 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N 0) tO CD 00 to to a- a- d' V V' - CO tf1 CO cc E t- N N M CO N N N CO a a- u) N Ws N O Q M C O, o > E O C O to O O E 0 J _v 0 D U ❑ co co U ~ U to 0 re Z a) 0 �t i City of Farmington #`a. 430 Third Street p t, - , Farmington,Minnesota . 0 r 651.280.6800•Fax 651.281161199 '4 'A PrA-P www.ci.fsrnungton.tnn.us TO: Mayor, Councilmembers, David McKnight, City Administrator FROM: Robin Hanson, Finance Director SUBJECT: 2012 Comprehensive Annual Financial Report(CAFR) DATE: May 20,2013 The City of Farmington's Comprehensive Annual Financial Report (CAFR) is published to provide the Mayor, City Council, City Stafl; citizens, investors, and other interested parties with useful information concerning the City's operations and fmancial position. Responsibility for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures,rests with the City. Management assumes full responsibility for the completeness and reliability of the information presented in the report. To provide a reasonable basis for making these representations, management has established a comprehensive internal framework that is designed both to protect the government's assets from loss, theft or misuse and to provide sufficient, reliable information for the preparation of the City's fmancial statements in conformity with Generally Accepted Accounting Principles (GAAP). The cost of internal controls should not outweigh their benefits,therefore, the City of Farmington's comprehensive framework of internal control has been designed to provide reasonable, rather than the absolute assurance, that the financial statements will be free from material misstatement. As management, we assert that to the best of our knowledge and belief the fmancial report is complete and reliable in all material respects. The City of Farmington's fmancial statements have been audited by Smith, Schafer & Associates, Ltd. They will present a summary of the fmancial statements and the audit at the Council meeting. The Independent Auditor's Report,the Auditor's Report on Compliance, the Communication with Those Charged with Governance and a draft of their presentation are attached. The goal of an independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year-end are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall fmancial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of Farmington's financial statements for the fiscal year ended December 31, 2012, are fairly presented in conformity with GAAP. An 64 unqualified opinion is issued when the independent auditor believes that the company's financial statements are sound;that is,the statements are free from material misstatements. The Comprehensive Annual Financial Report consists of three distinct sections: Introductory, Financial.and Statistical. The Introductory Section includes a Letter of Transmittal, organizational chart, listing of the City's elected officials and executive staff, and a copy of the Certificate of Achievement for Excellence in Financial Reporting. The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Farmington for its Comprehensive Annual Financial Report (CAFR) for the year ended December 31, 2011. This is the third year the City has received this prestigious national award. In order to be awarded this Certificate of Achievement, the government needs to publish an easily readable and efficiently organized CAFR and has satisfied both GAAP and applicable legal requirements. The Certificate of Achievement is valid for a period of only one year and we believe the current CAFR continues to meet the Certificate of Achievement program requirements. We are submitting the 2012 report to the GFOA to determine eligibility for another certificate. The Financial Section includes the Independent Auditor's Report along with a narrative introduction, overview and analysis to the accompanying fmancial statements in the form of Management Discussion and Analysis, commonly referred to as MD&A. The financial statements themselves consist of the Government-wide Financial Statements which are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business. These are followed by fund fmancial statements for the City's Governmental, Proprietary (Enterprise and Internal Service Funds) and Fiduciary Funds, notes to the financial statements which describe the City's significant accounting policies, and budgetary comparison schedules for the majority of the City's Governmental funds. The last section, the Statistical Section includes specific tables detailing the City's financial trends, revenue and debt capacity, demographic and economic information and operating information. The report was prepared by the City's Finance Department. Due to its unwieldy size and the difficulty in reading it electronically (many two page layouts) it is not included in this mailing, but a draft will be available at the Council meeting. Furthermore, in early June each Council member will receive a bound copy of the CAFR and it will be published on the City's website. From a financial perspective,while the City continues to face fmancial challenges which it needs to remain diligent in addressing, 2012 was a very good year for the City and should be celebrated. Following are the financial highlights included in the MD&A. • The assets of the City(all funds) exceeded liabilities by $112 million (net position) at the close of the most recent fiscal year. Of this amount, $29.2 million (unrestricted net position) may be used to meet the government's ongoing obligations to citizens and creditors. • The City's total net position increased by$5.6 million in 2012. • The City's total bonded debt decreased by $3.1 million or 8% during the fiscal year due to the annual payments on its bonds, including fully retiring the series 2001C PIR Bonds. 65 • The City's governmental funds reported combined ending fund balances of$14.7 million at December 31, 2012, an increase of$3.8 million from the prior year. Approximately 76% of this total amount, $11.2 million, is available for use within the City's constraints and policies. • During the year the City transferred $685,000 into the EDA, Recreation Operations and Arena Funds to eliminate negative fund balances that had accumulated over time in these funds. • With the exception of an interfund loan for the purchase of a new fire truck by the General Fund with funds from the Water Fund, all remaining interfund receivables and payables were eliminated as of December 31,2012. • At the end of the current fiscal year, the unassigned fund balance for the General Fund was$2.1 million, or 23%of General Fund expenditures. While the immediate impact of the decisions to eliminate negative fund balances, interfund receivables and payables and internally fmance the fire truck drops the General Fund fund balance below the minimum 25% target, these decisions should serve to strengthen the General Fund's fund balance in the future. In addition to the above, the City began to address its deferred maintenance needs by providing funding for seal coating and trail maintenance, and approved the early redemption of two series of bonds and the refinancing of two series of bonds which will also serve to strengthen the City's financial position. Finally, as stated earlier, the responsibility for both the accuracy and completeness of the financial records rests with the City. I would like to recognize and thank everyone involved in making this report possible. The Finance Department spends the most direct time creating and maintaining the City's financial records. They do an outstanding job. It is also very important to recognize the diligence of every City staff member, be it conservative spending, cash receipting, completing purchase orders, submitting supporting documentation, entering payroll information, coding invoices and receipts so that they are properly recorded, every action directly contributes to the accuracy and completeness of the City's financial records. I appreciate their diligence, close attention to detail and patience in complying with our numerous accounting requirements. Finally, I would like to thank you, Mayor and members of the City Council, for your support and the steps you have taken to continue to strengthen the City's finances and longer-term financial planning. Respectfully Submitted, Robin Hanson, Finance Director 66 INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of the City Council City of Farmington Farmington, Minnesota Report on the Financial Statements We have audited the accompanying financial statem ys of the t•vemmental activities, the business-type activities, each major fund and the agg °:te remainingd information of the City of Farmington, Minnesota, as of and for the year ded ember 3", 2012, and the related notes to the financial statements, which collectively « x ..k-/the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Fina ' -,-!,e Management is responsible for th •reps ,. an.' air presentation of these financial statements in accordance with ac„ y pnnE�; es generally accepted in the United States of America; this includes the desk, impl entati, and maintenance of internal control relevant to the preparation and fair p' ' -nt. F t°cial statements that are free from material misstatement, whether due to fra►`t -error. Auditor's Responsi'�, � Our responsibility is ., Uxpress o•?„'t ions on these financial statements based on our audit. We conducted our audit i cordan ' with auditing standards generally accepted in the United States of America. Tho t bards require that we plan and perform the audit to obtain reasonable assurance abou ';,� -ther the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's p re p aration and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting principles used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 67 Honorable Mayor and Members of the City Council City of Farmington Page 2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Farmington, Minnesota as of December 31, 2012, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United of America require that the Managements Discussion and Analysis on pages XX thr •h =:� the Budgetary Comparison Schedule — General Fund on page X (, and the Schee .a of Fu • i. Progress — Other Post- Employment Benefits on page XX be presented to;. :plement the . 'c financial statements. Such information, although not a part of the b final -I statements, is required by the Governmental Accounting Standards Board, who c•A " - it to be an essential part of financial reporting for placing the basic financial stat, ents in ,appropriate operational, economic, or historical context. We have applied certai 'r'r* • pro ':, res to the required supplementary information in accordance with auditing sta s= - • a accepted in the United States of America, which consisted of inquiri- of m- ' , en bout the methods of preparing the information and comparing the inf. ,�: for • sistency with management s responses to our inquiries, the basic financial st- :`" ents nd o ,r knowledge we obtained during our audit of the basic financial statements. e d• an opinion or provide any assurance on the IA . information because the limited res •1646ot provide us with sufficient evidence to express an opinion or provide a Other Information . Our audit was conduc":• or the) rpose of forming opinions on the financial statements that collectively comprise the :,u'ty Farmington, Minnesota's basic financial statements. The introductory section, combine- v•nd individual fund financial statements and schedules, budgetary comparison schedules, and statistical section listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules and the budgetary comparison schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to the prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statement and schedules and the budgetary comparison schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. 68 Honorable Mayor and Members of the City Council City of Farmington Page 3 Other Matters (Continued) Other Information (Continued) The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Maplewood, Minnesota May 14, 2013 41° 111 .1141P 69 AUDITOR'S REPORT ON COMPLIANCE Honorable Mayor and Members of the City Council City of Farmington Farmington, Minnesota We have audited, in accordance with auditing standards g' -ra -ccepted in the United States of America, the financial statements of the governmen activitie ‘e business-type activities, each major fund, and the aggregate remaining fu- information • e City of Farmington, Minnesota as of and for the year ended Dece r 31, ;12, and he related notes to the financial statements, and have issued our report the I - ed May 14, 2013. The Minnesota Legal Compliance Audit e • Pob Subdivisions, promulgated by the State Auditor pursuant to Minn. Stat. § 6.. co e -n categories of compliance to be tested: contracting and bidding, •-•osits • inv- ents, conflicts of interest, public li indebtedness, claims and disburs-- isc. neous provisions and tax increment financing. Our audit considered all of the Ii- ` • •ries. In connection with our audit no ame to •ur attention that caused us to believe that the City of Farmington, Mi► _ ai = to comply with the provisions of the Minnesota Legal Compliance Audit Gu. for Po -1 ivisions. However, our audit was not directed primarily toward obtaining kn• -dge of su noncompliance. Accordingly, had we performed additional procedures, other ma may e come to our attention regarding the City of Farmington, Minnesota's noncomplian. ,it, ' e above referenced provisions. This report is intended solely for the information and use of those charged with governance and management of the City of Farmington, Minnesota and the State Auditor and is not intended to be and should not be used by anyone other than these specified parties. Maplewood, Minnesota May 14, 2013 70 May 14,2013 To the City Council City of Farmington, Minnesota We have audited the financial statements of the governmental activities,the business-type activities,each major fund, and the aggregate remaining fund information of the City of Farmington, Minnesota for the year ended December 31, 2012. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated December 5, 2012. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use • 'prop' - accounti g policies. The significant accounting policies used by the City of Farmington, Mi r • ='-re described in Note 1 to the financial statements. No new accounting policies were adopted a • �a application of existing policies was not changed during the year We noted no transac t 'M tered i •y the governmental unit during the year for which there is a lack of authoritative guidan,°r o su I significant transactions have been recognized in the financial statements in the prop: •e Accounting estimates are an integra • e fin ial statements prepared by management and are based on managements knowle•-( and erienc bout past and current events and assumptions about future events. Certain acc• g _ ,or -'particularly sensitive because of their significance to the financial statements and be - of the po sibility that future events affecting them may differ significantly from those � y�� 'N ;,most sensitive estimates affecting the City of Farmington, Minnesota's financial st ents �r Management's ate of r-;. useful life of purchased or contributed property and equipment is base: „n A the imate productive life of these assets. We evaluated the estimated useful live- ed to property and equipment and determined that these lives were reasonable in -lation to the financial statements taken as a whole. Management's allocation of certain expenses (i.e. salaries, benefits and supplies) are allocated to functions based on an estimate of the benefit to that particular function. We evaluated estimates used to develop these allocations and determined they are reasonable in relation to the financial statements taken as a whole. Management's estimate of the Net Other Post Employment Benefit (OPEB) Obligation is based on an actuarial study using estimates of future obligations of the City for post- employment benefits. We evaluated the key factors and assumptions used to develop the OPEB liability and determined they are reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral,consistent and clear. 71 City Council City of Farmington,Minnesota Page Two Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. The attached schedule summarizes uncorrected misstatements of the financial statements. Management has determined that their effects are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. Disagreements with Management For purposes of this letter, a disagreement with manage -;.• is a ial accounting, reporting, or auditing matter, whether or not resolved to our satisfa ', that could significant to the financial statements or the auditor's report. We are pleased to rem__ that • such dis eements arose during the course of our audit. Management Representations )irpor We have requested certain representations fro .r,- t at are included in the management representation letter dated May 14,2013. Management Consultation with 0 7 Inde nden countants In some cases, management may •.a • cons ` ' ith other accountants about auditing and accounting matters, similar to obtainin. ',i1•nd •ion"on certain situations. If a consultation involves application of an accounting principl a �i%,the g: 4 s me.I unit's financial statements or a determination of the type of auditor's opinion that y be expr f4 ed those statements, our professional standards require the consulting accountant t: -ck with u " o determine that the consultant has all the relevant facts. To our knowledge,there were no x con ia 4tions with other accountants. Other Audit Findings or Issu- = We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. 72 City Council City of Farmington, Minnesota Page Three This information is intended solely for the use of the City Council and management of the City of Farmington, Minnesota and is not intended to be, and should not be, used by anyone other than these specified parties. 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