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HomeMy WebLinkAbout07.15.13 Council Minutes COUNCIL MINUTES REGULAR July 15, 2013 1. CALL TO ORDER The meeting was called to order by Mayor Larson at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE Mayor Larson led the audience and Council in the Pledge of Allegiance. 3. ROLL CALL Members Present: Larson, Bartholomay, Bonar, Donnelly, Fogarty Members Absent: None Also Present: Andrea Poehler, City Attorney;David McKnight, City Administrator;Robin Hanson, Finance Director;Kevin Schorzman, City Engineer; Cynthia Muller, Executive Assistant Audience: Mark Arens, Jerry Rich, Andy Rogers 4. APPROVE AGENDA MOTION by Fogarty, second by Bonar to approve the Agenda. APIF,MOTION CARRIED. 5. ANNOUNCEMENTS 6. CITIZEN COMMENTS 7. CONSENT AGENDA MOTION by Bartholomay, second by Fogarty to approve the Consent Agenda as follows: a) Approved Council Minutes(7/1/13 Regular)(7/8/13 Workshop) b) Second Quarter 2013 New Construction and Population Estimate—Building Inspections c) Approved CDBG Funding Agreements-Planning d) Approved Bills APIF,MOTION CARRIED. 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS,REQUESTS AND COMMUNICATIONS 11. UNFINISHED BUSINESS 6 Council Minutes(Regular) July 15,2013 Page 2 12. NEW BUSINESS a) 2014—2018 Street Reconstruction Plan -Engineering City Engineer Schorzman spoke about the differences in the street reconstruction plan from the February workshops and the plan that will be brought to Council on August 5, 2013. The original plan showed the 195th Street project in 2015, Akin Park Estates East in 2017 and West in 2019, and 9th Street, Hickory and Euclid Street projects in 2021. The new plan will show Akin Park Estates East and West in 2014, 195th Street reconstruction project in 2015, and 9th Street, Hickory and Euclid Street project in 2015 as a contingency project if there are funds remaining after the Akin Park Estates project. The combining of the two Akin Park Estates projects should lead to good bids. The same work is being done within the same six-year time frame as originally scheduled and we are paying for it within the same timeframe. At the end of the six-year timeframe we pay off the bonds and have the ability to use the funds that were going towards the bond payments to fund the actual CIP. When considering the bonding Council should keep in mind to not just look at the bond payments. This bond is a piece of a bigger puzzle. You cannot look at the bond payments and assume that if from one year to the next they go up substantially, that there will be a huge levy increase. That may be offset in the future by reductions of our existing debt and we also have the 195th Street project included. Councilmember Fogarty stated in the original CIP plan,there was a gradual increase in the levy to build the fund. At the end of the six years,the CIP will still be funded as originally planned. By doing this now, it will cost us$120,000 more than if we had done it on our own. City Engineer Schorzman confirmed that depending on interest rates,but those are also offset by the potential savings of doing the project sooner. As with the original plan, after six years this plan will fully fund the CIP without additional increases. Councilmember Bonar stated we are trying to work towards a level of investment each year. Some will be bond dollars and some levy dollars. As projects are complete,those costs will be in the past. There is a plan and we are beginning the first step. He asked how often staff will provide an update on the next step. Staff replied when looking at the total CIP, we will update it as we receive information on each bid. Estimates will be replaced with the actual money used. Councilmembers thanked staff for their work on this plan and taking care of debt within the appropriate timeframe. Bids for the Akin Park Estates project will go out in early January 2014. b) Approve Farmington Fire Relief Association Retirement Contribution- Administration A workshop was held on July 8, 2013, with the Farmington Fire Relief Association on their fmancial status,the history of City contributions to the Relief Association and projects on upcoming member retirements and their impact on the Relief Association. A handful of members will be retiring in the next few 7 Council Minutes(Regular) July 15,2013 Page 3 years that will involve significant payouts. The FFRA also showed financial projects showing City contributions of the minimum amount, $150,000, and $200,000 annually. All of the numbers did not include increases for members of the FFRA. At the workshop the consensus of the Council was to set the City contribution for the Relief Association at$150,000/year for 2014 and beyond. City Administrator McKnight recommended approving this contribution for five years,through 2018,with an in-depth review of the financial status of the Relief Association as part of the 2017 budget process. The draft 2014 budget does include$150,000 in contributions. The minimum required contribution for 2014 is just over$137,000. Councilmember Fogarty stated many years ago the Relief Association was well over 100%funded. At that time they asked Council to increase their retirement and she recalled speaking to members that if all eligible members retired, the fund would not be fully funded and it could hurt the bottom line and long term financial stability of the fund. She was told not all members would go, but they did and it really depleted the fund. Shortly after that the economy put a hard hit on investments. The combination of this cost a lot of taxpayer dollars to make sure the fund was 100% funded. She would support getting them back to the level they were heading for. In prior years we were required to put$200,000 in the fund. In previous years we were required to contribute$70,000 and were increasing it by$5,000/year to build up the fund. That would put them this year at$105,000. Our contribution has to be$154,000 because that fund is still suffering. Even next year we would still have to be committed to $137,000. She has always supported public safety, but the result of those two big events happening cost the taxpayers a great deal of money and a couple people their jobs. It is hard to commit money when so much has had to be restored, even though it is of no fault to the current members. She would prefer to go back to the plan of where we were intending to be at this time. City Administrator McKnight stated currently we are funded at 87% and the $150,000 contribution would put us at 104%by 2019. Councilmember Bonar noted the mean average for pension investments throughout the state is 102%. Mayor Larson stated this$150,000, although more than we have to contribute, is good for budgeting and in five years we will re-examine it. If it becomes overfunded we can cap it. He liked the plan for budgeting reasons. MOTION by Bartholomay, second by Bonar to approve an annual contribution of $150,000/year to the Farmington Fire Relief Association for 2014—2018,with review of the financial status as part of the 2017 budget process. Voting for: Larson, Bartholomay, Bonar, Donnelly. Voting against: Fogarty. MOTION CARRIED. 13. COUNCIL ROUNDTABLE 8 Council Minutes(Regular) July 15,2013 Page 4 Councilmember Fogarty: Wished Effie Barnes, Miss Farmington 2012, good luck with her competition in the Aquatennial. Councilmember Bartholomay: He and Councilmember Bonar attended the Pan-O- Prog parade and it was nice to see Farmington represented. City Administrator McKnight: There will be a Joint Council/School Board meeting on July 22, 2013, at 5:30 p.m. City Engineer Schorzman: The sanitary sewer replacement project has begun on the east side of TH3 between Oak and Spruce Street. It affects five homes on the frontage road. Spruce Street is closed between TH3 and the frontage road. • Mayor Larson: Carbone's will have an outdoor concert featuring Hairball on August 17, 2013. It will be loud, but will end at 11:30 p.m. He reminded everyone to shop local and support Farmington liquor stores. There was an ad in the Family Fresh Market flyer promoting the Wine Club. 14. ADJOURN MOTION by Fogarty, second by Bartholomay to adjourn at 7:35 p.m. APIF,MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 9