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HomeMy WebLinkAbout05.06.13 Council Minutes 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 fl 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- Fire 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