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02.10.14 Work Session 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. • AGENDA CITY COUNCIL WORKSHOP February 10, 2014 6:30 p.m. Conference Room 170 1. CALL TO ORDER Page 2. APPROVE AGENDA 3. ICE ARENA DISCUSSION 2 4. TRAIL MAINTENANCE CIP 6 5. SUNDAY LIQUOR SALES BILL 11 6. UTILITY BILL INSERTS 30 7. AKIN PARK ESTATES UPDATE 32 8. ADJOURN PUBLIC INFORMATION STATEMENT Council workshops are conducted as an informal work session.All discussions shall be considered fact-finding,hypothetical and unofficial critical thinking exercises,which do not reflect an official public position. Council work session outcomes should not be construed by the attending public and/or reporting media as the articulation of aformal City policy position. Only official Council action normally taken at a regularly scheduled Council meeting should be considered as a formal expression of the City's position on any given matter. 1 KOi City of Farmington �111 430 Third Street Farmington, Minnesota �,' 651.280.6800•Fax 651.280.6899 www.ci.farmington.mn.us TO: Mayor, Council Members and City Administrator FROM: Randy Distad, Parks and Recreation Director SUBJECT: Arena Discussion DATE: February 10, 2014 INTRODUCTION, Staff members are seeking direction from the City Council on whether or not to provide summer ice in 2014 at Schmitz-Maki Arena. DISCUSSION In 2011,the City provided summer ice, but lost money as shown in the attached budget. Primarily,the reason for losing money was for the need to dehumidify the arena after the season has ended since the existing dehumidification system was undersized and was not able to properly dehumidify the air. Because of the air not being dehumidified during summer ice,the refrigeration system, especially the compressors, had a very difficult time because the heat and humidity generated caused the compressors to work extremely hard to maintain the ice surface, which added additional cost to summer ice. Because of an inadequate dehumidification system, it was determined that summer ice should not be offered in 2012 and 2013. In the summer of 2013,the City installed a new gas-fired dessicant dehumidification system to replace the aging original dehumidification system. It was used for the first time during the 2013-2014 winter ice season and it has performed quite well so far this season especially during times when the outside temperature has been warm and humidity levels were raised, which in the past would cause condensation to form inside the arena on the glass above the boards. This past fall, staff did not see this happen. A request has been made by the Farmington High School boys and girls hockey team coaches to once again offer summer ice in 2014. The request is for the City to provide a 2-3 week season either in June or July. Attached is an estimated 2014 summer ice budget that staff updated from the 2011 budget. The budget reflects the costs that staff members are estimating to occur if summer ice is offered in 2014 and is based on the following: • The estimated cost of operating the new gas-fired dessicant dehumidification system during summer ice is based on the previous cost to rent a gas-fired furnace in 2011 to remove the humidity inside the arena after summer ice had ended. 2 • Staff contacted City of Lakeville Arena staff and learned that Lakeville spent$2,246.84 in June, $2,895.36 in July and$3,143.26 in August on natural gas costs at Hasse Arena during its summer ice program. • Benefit costs have been included, which were determined by multiplying the personnel costs by 30%, which is a multiplier that Human Resources uses when estimating benefit costs such as insurance, PERA,workers compensation,FICA(Social Security) and Medicare. • Moderate annual inflationary increases have been made to the 2011 budget to determine an estimated 2014 budget. City staff members want to make the Council aware of the following items related to summer ice: • According to Minnesota State High School League Student Eligibility By-Laws Subsection 203 Athletic Camps and Clinics; #2 Coaches; Letter B During the Summer; summer contact time for athletic camps and clinics shall be only from June 1st-July 31St and further, a no contact period in July during the week of July 4th, This means that summer ice would have to be offered in either June or July in order for the coaches to offer their clinics and/or camps. • In June, Arena staff has shifted their priority to preparing the outdoor pool to open and it would be quite difficult to try and prepare two facilities at the same time to open given available staffing levels. • It would appear that July would be the only available month to offer summer ice with the dates of July 14-31 as the ideal dates to allow a week to put the ice in without it falling on the July 4th holiday. • Having it from July 14-31 may create an issue because it means ice will not be taken out until the first week of August,which means a tight timeline to allow the concrete floor to dry, have time to paint lines and the surface and provide enough time to allow the paint to adequately dry before flooding begins. August also happens to be the month that the outdoor pool closes so staff would have both the pool and closure and arena prep work to complete during the same month. • The cities of Rosemount, Apple Valley and Lakeville are all planning on offering summer ice in 2014 meaning that within a 15 minute drive from Farmington there is competition and ice available. • Advertisement of summer ice in Farmington can be completed in several different venues including the City's website, City publications and other hockey publications in order to try and have more ice hours rented from groups outside of the Farmington area. City staff will do our best to ensure all programs offered during summer ice are done well if the direction of the City Council is to offer summer ice. Staff has taken a conservative approach to summer ice with the repeated message over the years to get the arena operations to pay for themselves. BUDGET IMPACT As stated previously, an estimated 2014 summer ice budget was created. The actual natural gas cost for the gas-fired dehumidification system is the big unknown at this time because the City only recently installed the new dehumidification system so we do not have any kind of financial history with the cost of natural gas during summer ice. Based on the estimates created by staff, it appears that in 2014 there would be an operating loss if summer ice is offered and additional 3 summer ice hours are not rented beyond what was rented in 2011. However,to help mitigate the operating loss, advertising of the availability of summer ice could occur in hockey publications and through the various City publications and website in hopes of generating additional rental revenue. ACTION REQUESTED Provide direction to staff on whether the City Council supports or does not support offering summer ice in 2014. Respectfully Submitted, Randy Distad Parks and Recreation Director • • • 4 Summer Ice 2011 Personnel Services $4,870.00' Electric $4,621.35 Natural Gas \ $63.69 Municipal Services $740.00, Fuel $152.72 Heater rental $5,563.361 *Total Expenses $16,011.12; Ice rental 82.50 hours $12,375.00 Lessons $301.86 Open Skate $51.17 Skate Sharp $13.93 Tape,mouth guards, laces $7.43 *Total Revenue $12,749.39 NN Difference ($3,261.73)i Summer Ice 2014 estimate Personnel Wages/Salaries $5,016.00 increased 3%from 2011 (1%each yr) Benefits $1,505.00 increased 3%from 2011 (1%each yr) Electric $4,760.00 increased 3%from 2011 (1%each yr) Natural Gas $6,000.00 no increase new dehumidification cost Municipal Services $765.00 tincreased 3%from 2011 (1%each yr) Fuel $160.001increased 3%from 2011 (1%each yr) *Total Expenses $18,206.00 2011 rental hours of 82.5 $12,787.50 based on $155 hr. 2014 summer ice hourly rental rate Lessons $301.86 Open Skate $51.17 Skate Sharp $13.93 Tape,mouth guards, laces $7.43 *Total Revenue $12,749.39 Difference ($5,456.61) Divided by Hourly Rental Rate $155.00 Additional Rental Hours Needed to Break Even 35 'Expenses and Revenues are based on three week summer ice schedule and Includes cost associated with putting the ice in and taking it out 5 • �o�Fy�� City of Farmington �`� 430 Third Street ` � r Farmington Minnesota ' 651.280.6800•Fax 651.280.6899 www.cilarmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Randy Distad,Parks and Recreation Director RE: Trail Sealcoating and Maintenance Plan DATE: February 10,2014 INTRODUCTION In 2012 and 2013 the City completed sealcoating and crack sealing of some trails. A longer term plan is desired showing a schedule of all City paved trails receiving maintenance work within a.specific time period. DISCUSSION Included in your packet is Exhibit A, a map showing a plan that allows for all current paved trails to receive - crack sealing and/or fog sealing maintenance work once every five years. The trails selected annually to receive maintenance work are based on dividing the City into five areas so that the trails in each area are close in proximity to one another in order to save on mobilization costs. Additionally,the plan allows for more significant maintenance work to be completed over time including overlaying existing trails and reconstructing trails that have deteriorated to a point that crack sealing and fog sealing no longer provide a benefit to the trail. The cost to either overlay or reconstruct a trail section comes at a greater cost than fog sealing and crack sealing trails,which these costs are identified in Exhibit B. Included in your packet is a financial plan for the years 2014-2035 that identifies projections of revenues and expenses for the Trail Maintenance Fund and is shown as Exhibit C. A couple of important points about the financial plan: • An assumption was made that the City would continue to provide an annual levy of$30,000 to fund the fog sealing and crack sealing of trails starting in 2015 and running through 2035. • As you can see in the years that there are fewer miles of trails being fog sealed and crack sealed,there is a greater amount carried over into the fund balance, which will allow a reserve to be built up over time so overlaying and reconstruction of trails could be completed when the fund balance is sufficient to allow this to occur. • In 2021, staff is proposing to transfer additional funding from the CEP program in order to begin providing funding needed to complete the larger expenses of overlaying and reconstructing older trail sections. • If the City Council would like to accelerate the maintenance of trails so it occurs more frequently than a five year period or because trails begin to fail quicker than projected,then the annual funding amount could be increased. 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CO 0 O 0 0 0 CO U O CO 0 0 m CO M M 0 0 r CC m CO .- C O O O r.t O O O O (0 CO N h .- 0 0 0 CO O co V h N (n N (N r V CO C 0 .)(V O O O(f) O p N N N r N N O.- p CO CO cn - co N - rp N r O CA E9 CA EA EA 69 to • N CA EA to EA EA Lc; N J A O O C C O F- I— A g F o N N d ,c O) C CV C N M r IC CD ro o m .O N N .O C C C U 0) l0 O 0,'O-0 U C (L 'O N C m rs C Cry j a) t" Q LL CO C N tL p� N ) N 0 = LO Y O! ii (n O 70 O '6 car), 'p X LL CL 0_O t. E O O U T a co l.L o N:..t. W 'C d 'N N 2 > CU N N E O O>. O O y N a a 7,• 'C U > 10 c ( J o O C ,� d Ey to > m c d 0) C C( v x E. .w t a o a m o]C) a1- - x. : 4i1046, City of Farmington 430 Third Street ego Farmington,Minnesota 651.280.6800•Fax 651.280.6899 www.ci.farmington.mn.us TO: Mayor and City Councilmembers FROM: David J. McKnight, City Administrator SUBJECT: Sunday Liquor Sales DATE: February 10, 2014 INTRODUCTION Liquor Operations Manager Blair Peterson will be in attendance at your February 10, 2014 work session to discuss the topic of Sunday liquor sales. DISCUSSION The issue of Sunday liquor sales is once again becoming a much talked about issue with the upcoming legislative session. City staff thought it would be a good idea to discuss this issue with the City Council to see if you wanted to take a formal or semi-formal position on this issue. The Minnesota Municipal Beverage Association has shared some information with its members on this issue. We have included this information for your review with this memo. City staff is looking to discuss this issue with the City Council to see if you want to take a position on this issue that we would share with our legislators and others. Staff is not looking to get into the discussion on whether government should play a role in telling public and private stores if they should be open.on Sunday's,but rather how the Sunday liquor issue would impact the Farmington liquor stores. BUDGET IMPACT TBD ACTION REQUESTED City staff is looking to discuss this issue with the City Council and take direction that you are comfortable with on this issue. If you need additional information on this topic staff would be happy to put that information together. 11 Respectfully submitted, David J. McKnight City Administrator 12 New Bills Would Allow Sunday Liquor Sales Page 1 of 2 ta LEAGUE or MINNESOTA CITIES New Bills Would Allow Sunday Liquor Sales Three bills, including one that highlights local control,were introduced to allow Sunday liquor sales. (Published Jan 21, 2014) Three identical bills to allow Sunday liquor sales were introduced in the House on Jan. 13. The proposals were introduced in time to meet the deadline to pre-file bills before the start of the legislative session. (See related story.(Link to:ht4):/Avww.lmc.org/page/1/Prefiles2014jsp) Nearly every legislative session,there is a bill to bring Sunday liquor sales to Minnesota,and it usually doesn't make it out of committee. On the rare occasion that it has, it has always been voted down when it got to full floor debate. In 2013,when it was up for a vote on the House floor, it was voted down 106- 21,while the Senate version never made it to a full vote. The 2014 bills brought forward last week are: • HF 2118(Link to:https://www.revisor mn.gov/bills/text.php? number=HF2118&version=0&session=ls88&sessionyear=2014&session_number=0), authored by Rep.Jerry Hertaus(Link to: http:/Avww.house.leg.state.mn.us/members/members.asp?leg id=15400)(R-Loretto). • HF 1910(Link to:https://www.revisor.mn.gov/bills/text.php? number=HF1910&version=0&session=1s88&sessionyear=2014&session number=0), authored by Rep. Steve Drazkowski(Link to:http:/Avww.house.leg.state.mn.us/members/members.asp?leg id=15286)(R-Mazeppa). • HF 1946(Link to:hops://ww iv.revisor.mn.gov/bills/textphp? number=HF1946&version=0&session=ls88&sessionyear=2014&session number=0), authored by Rep.Jenifer Loon(Link to: http:/Avww.house.leg.state.mn.us/members/members.asp?leg id=15313)(R-Eden Prairie). As past attempts at legalizing Sunday liquor sales demonstrate,these bills are expected to have an uphill battle.Perhaps because of this,one of the bill's authors is taking a different approach in messaging by highlighting the ability of municipalities to regulate the hours and rules of sale.In a press release from Rep.Loon,the bill is described as removing the statewide ban on Sunday liquor sales and would"allow local municipalities to decide hours and rules for these sales." • Read Rep.Loon's press release(Link to:http:/Avw,v.house.leg.state.mn.us/members/pressrelease.asp? pressid=7158&party=2&memid=15313) To be clear, cities already have the authority to decide hours and rules for any liquor sales,but cities may not limit or add to the days of sale allowed by statute. So if one of these Sunday liquor bills passed, cities could pass reasonable restrictions,including on hours of sale,but cities could not ban liquor off- sales on Sunday. 1 3 http://www.lmc.org/page/1/SundayLiquorl4 jsp 1/24/2014 New Bills Would Allow Sunday Liquor Sales Page 2 of 2 The League does not have a policy supporting or opposing Sunday liquor sales,but staff will continue to monitor these bills throughout session.For more information on liquor licensing procedure, state and local regulations imposed on liquor license holders, and insurance and liability concerns, see the League's information memo,Liquor Licensing and Regulation. • View the memo: Liquor Licensing and Regulation(pdf)(Link to: http:/hvnnv.1mc.org/media/documendl/liquorlicensingandregulation.pd,D Read the current issue of the Cities Bulletin(Link to:http://vww.lmc.org/page/l/cities-bulletin-newsletterisp) Your LMC Resource Contact Ann Lindstrom IGR Representative (651)281-1261 or(800) 925-1122 alindstrom@lmc.org(Link to:mailto:alindstrom@lma.org) Contact Edward Cadman Staff Attorney/Special Counsel (651)281-1229 or(800) 925-1122 ecadman @lmc.org(Link to:mailto:ecaaman@tmaorg) New LMC Blog- The Pipeline . TI IE:F iPELIN A MINNESOTA!NLIC WOR S,c0NNEG o P ' '''A; .4 ,:itAiil �/ it ..47-if .- '-.- VISIT LMCPIPELINEJLOGSPOT.COM (Link to:hiV/Iwww.linc.org/ads/103201) ©2014 League of Minnesota Cities,145 University Ave.W,Saint Paul,MN 55103-20441 Phone:(651)281-12001 Toll-Free:(800)925-1122 14 http://www.lmc.org/page/l/SundayLiquor14.jsp 1/24/2014 MNIBA: Sunday Sales: Convenience at What Cost? Page 1 of 13 . - MMBA I Sunday Sales: MM � Convenience at What Cost? General MAMA Position MMBA is opposed to this initiative. MMBA the recognize Sunday Sales would benefit some of our members. However, the majority of facilities would eventually be negatively impacted. Mission Statement Summary Sheet Sunday Sales is not about working hours. Directors Sunday Sales: Convenience at It is about spreading six days of sales over seven days of expenses.Alcohol What Cost? is not a destination purchase. People don't get up and say"let's go alcohol Upcoming Events shopping." It is an impulse purchase that, in the vast majority of locations, Institute for Beverage doesn't pay the day's,bills. Minnesota cars buying in Wisconsin on Sunday Professionals are coming from multiple locations to one store. Magazine Rates Magazine Archives In addition, Sunday Sales has the potential to lead to the elimination of 3.2 Endorsement Policy beer and ultimately Wine&Strong Beer in Grocery/Convenience Stores. Commercial Membership Finally, public safety considerations should outweigh convenience. Application Contact Us Public Safety Weekly Newsletter Archives Sign up for the 2012 Minnesota State Substance Abuse Strategy Electronic Newsletter Scholarship Maintain[ing] limitations on alcohol availability including:alcohol sales Position Papers restricted to 6 days a week statewide and to current locations(designated Liquor Store liquor outlets not grocery or convenience stores) Management Articles httos://edocs.dhs.state.mn.us/Ifserver/Public/DHS-6543-ENG Spanish Warning Sign Keg Registration Tag Effectiveness of Policies Maintaining or Restricting Days of Alcohol Order Form Sales on Excessive Alcohol Consumption and Related Harms Alcohol Awareness Server Training New Minnesota Drivers By The Hartford Courant License A letter to Minnesota Repealing a ban on Sunday alcohol sales at stores increases Retailers from the number of alcohol-related accidents and deaths, according Southern Wine& to a task force of the U.S. Centers for Disease Control and Spirits Chairman& Prevention that reviewed 14 studies in which laws restricting CEO Harvey Chaplin alcohol sales were changed. Home Much of the debate over whether to allow alcohol sales on Sunday focused on such issues as revenue for the state and Links: small business vs. big business, but there's been little Minnesota Licensed discussion about the implications for public health. Beverage Assn. In 2010, a team of researchers that make up the CDC's Task MN Legislature Force on Community Preventive Services published research Alcohol&Gambling in the American Journal of Preventive Medicine examining Enforcement alcohol consumption in locations where bans on alcohol sales on certain days had been enacted, abolished or modified. League of MN Cities http://www.municipalbev.com/sundaysales.htm 1/31/2014 15 MMBA: Sunday Sales: Convenience at What Cost? Page 2 of 13 MinnesotaSmart.com 'We found strong and consistent evidence that limiting alcohol (Wine in Grocery) availability by maintaining existing limits on the days of sale is an effective strategy for preventing excessive alcohol National Alcohol consumption and related harms,"the authors wrote. Beverage Control Association Robert Hahn, one of the authors of the analysis, said that "based on our conclusions, our position is to recommend Minnesota Gambling against"repealing bans on the sale of alcohol. Control Board View Study, (PDF): Minnesota Statute 340A Effectiveness of Policies Maintaining or Restricting Days of Alcohol Sales on Excessive Alcohol Consumption and Related Minn.Administrative Harms Rule 7515 Two Studies Show how Sunday Sales Negatively Impacted Public Safety in New Mexico The original study concludes... Our results strongly suggest that increasing alcohol availability on Sunday was associated with increases in alcohol-related motor vehicle crashes and fatalities. Legalizing Sunday package alcohol sales may increase state tax revenues, but at the same time it exacts a significant price that is paid by crash victims and their loved ones, health care providers. insurers, and law enforcement and judicial systems. State legislators should consider these consequences when deciding policy that is intended to serve the public well-being. http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1751802/ The follow-up study concludes... Our previous work has shown a significant impact of increased ARC risks when the ban on Sunday packaged alcohol sales is repealed. The current study shows that this impact varies considerably across counties in New Mexico. Furthermore, the negative impact of legalized Sunday packaged alcohol sales appear to have been mitigated in counties with large communities that quickly held an election to re-institute a ban on Sunday packaged alcohol sales. View Study, (PDF): Geographic variability in alcohol-related crashes in response to legalized Sunday packaged alcohol sales in New Mexico 2013 Duluth News Tribune Editorial In 2013,the Duluth News Tribune published an editorial in favor of Sunday Sales. The article began: Run out of beer on a Sunday and what do some Duluthians do? They jump into their cars and motor across a bridge to a liquor store in Superior for more, hoping the few they've already had weren't a few too many. 16 http://www.municipalbev.com/sundaysales.htm 1/31/2014 MMBA: Sunday Sales: Convenience at What Cost? Page 3 of 13 That potentially tragic scenario is an unfortunate reality that plays out more regularly than many of us would care to think about, and not only in Duluth, but in all Minnesota border communities. This argument indicates people who have had too much to drink should go to a liquor store closer to home to purchase more alcohol. Business/Economics Sunday Sales: Sunday Sales Not Good for the Bottom Line By Edina City Manager Scott Neal There's an annual discussion going on right now at the State Legislature around the question of whether the good citizens of Minnesota should be allowed to purchase beer, liquor and wine on Sundays. The State Legislature sets the rules for such important life choices as this, so it's only natural that they study the issue carefully, hear from all sides on the matter and then make a rational decision that's good for all concerned, right?Right. Now I'll be the first to admit that upon moving to Minnesota in 1996 that it struck me as a little odd that I could not buy beer, liquor or wine on a Sunday. I had moved here from Iowa where you could buy beer(OK,yes, it was 3.2 beer), liquor and wine in aisle 10 at any Hy-Vee grocery store on Sunday or any other day of the week. When I first moved here I thought it was odd that cities with municipal liquor stores would partner with private liquor stores to fight efforts to allow Sunday sales. Why?Why wouldn't we want our stores to be able to sell on Sundays?Sure, employees aren't going to like it, but isn't one of our key objectives in the liquor business to make money, and wouldn't we make more money if we could be open on Sundays and sell more product? This is the third municipal liquor city that I've managed in Minnesota. I'm not a brilliant business mind, but I know a thing or two about the liquor business, so let's take a look at the numbers in Edina to see if the Sunday sales idea makes any sense for us. City staff project our 2011 total sales at our three municipal retail stores to be$13,367,072. We project our total 2011 operating expenses at$12,338,481. That means our projected operating income for 2011 will be just over one million dollars at$1,028,591. In 2011, our stores will be open 307 days. We will be closed on 58 days. 52 of those 58 days are Sundays. 6 of those 58 days are holidays. In examining the hypothetical impact of the proposed legislation, I will assume that we would be open 359 days and closed 6 days in 2011. Our 2011 projected sales per day is$43,540. Our 2011 projected operating costs per day are$40,190. If you do the 17 http://www.municipalbev.com/sundaysales.htm 1/31/2014 MNIBA: Sunday Sales: Convenience at What Cost? Page 4 of 13 math, the difference between these two numbers multiplied by the number of days we will be open in 2011 (307) will equal • our projected net operating income for 2011:$1,028,591. If the Legislature changes the law on Sunday sales, it will be difficult for us not to be open on Sundays, so I will assume in this hypothetical that our stores would be open for 52 additional days in 2011. If we further assume that our projected 2011 daily operating costs of$40,190 would not be materially different on Sundays, we would add 52 more days of operating costs at$40,190/day to our annual operating cost totals. This would increase our projected annual operating costs in 2011 by$2,089,729 from$12,338,481 to $14,428,210;an increase of 16.9%. On the revenue side, if we were open on Sundays and wanted to keep our projected net operating income the same ($1,028,591), we would need total gross sales of at least $15,456,801, which is an amount equal to the sum of our projected Sunday sales scenario operating expenses of $14,428,210+$1,028,591. This gross sales goal would require an increase in our sales of$2,089,729;and increase of 15.6%. So, if we want to stay exactly where we are right now, fiscally, in the Sunday sales scenario we would need to hold down the increase in our projected operating expenses to 16.9%or less and increase our projected gross sales by at least 15.6%. Is that possible?Maybe, but the challenge is steep. In 2010 our total customer count for our three store operation was 506,410. Our total sales were$12,862,719.Average sales per customer then were$25.39. For the sake of this example, if we hold our average sales per customer steady at $25.39, it would take an annual increase of 102,365 in our 2011 customer count, an increase of 20%, in order to create the$15,456,801 we need to generate our projected $1,028,591 net annual operating income. If we work the equation the other way, keeping the customer count steady at 506,410, we would need a 20%increase in our average sales/customer, from$25.39/customer to$30.52/customer)in order to gross$15,456,801 in order to net$1,028,591. Getting back to my previous question:Is it possible to maintain our current level of net operating income in Sunday sales scenario?Short answer. I doubt it. The likelihood that we will experience an increase in our annual operating costs under this scenario of something in the neighborhood of 16.9%is high. The likelihood that we will experience an increase in our annual gross sales under this scenario of something in the neighborhood of 15.6%is, in my view, low. I do not doubt that we will experience an increase in gross sales, but I do not see any really evidence that would support an increase of close to 15.6%. Those are the numbers I'm looking at. If I owned a liquor store in Stillwater, Winona or Moorhead, I am sure that I'd see this situation differently. But I don't. My interpretation of the numbers is that the Sunday sales scenario is not good for the bottom line of the City's municipal liquor operation. I could be missing something here, but in the end, here's how I boil it down:good for consumers, but bad for business. http://www.municipalbev.com/sundaysales.htm 1/31/2014 18 MMBA: Sunday Sales: Convenience at What Cost? Page 5 of 13 Regulatory Changes Have No Clear Positive Fiscal Effects—Ball State University: We find that permitting Sunday sales reduces the number of retail package store establishments by roughly eight to ten percent under different model specifications. When combining a relaxation of Sunday sales with sales at non package stores facilities, we observe the loss of just over 25 percent of package stores. This result indicates that any such regulatory change will likely result in only changes in the structure of the industry. No cross border effects of the legislation were observed.As a consequence, regulatory changes have no clear positive fiscal effects as increased sales in one retail sector simply displace another, without boosting cross border sales. View Study, (PDF): Package Store Retail Structure and the Regulation of Alcohol Sales Don't Count Sunday Liquor Tax Revenues Just Yet—Growth&Justice The latest debate over Sunday liquor sales in Minnesota has featured claims that Minnesota is somehow missing out on$10 million in tax revenues. I've debunked parts of this claim via twitter and comments sections, but thought it worth a post... htto://growthandjustice.tvoeoad.com/mv weblog/2011/02/dont-count- sundav-liquor-tax-revenues-iust-vet.html Connecticut:Sunday Sales Hurts Business By Brian M. Johnson, New Britain Herald As the state approaches the one year anniversary of Sunday booze sales, liquor store owners aren't in a celebratory mood. Legalization of Sunday sales was signed into law May 20, 2012. Area liquor store owners said the law has not resulted in increased profits and has actually hurt their businesses. Miroslaw Szczygla, owner of Five Star Liquor, in New Britain, said the law is terrible for families and businesses. 'This is the worst decision we've made in Connecticut,"said Szczygla. 'We can't compete with Massachusetts unless we cut or lower our liquor taxes. Most of the time Sunday there is no business until after 1 p.m. when the alcoholics come in. Most regular customers have bought all their liquor by Saturday. Now I have no time for family at all. We can't even afford to take off time for holidays." Bob Shah, owner of A&S Package Store in New Britain compared working all week to living in a golden jail. 19 http://www.municipalbev.com/sundaysales.htm 1/31/2014 MMBA: Sunday Sales: Convenience at What Cost? Page 6 of 13 "I haven't made any extra sales and I can't leave unless I find someone trustworthy to manage the store. The state hasn't made any extra money from this either. People still go out of Connecticut to sell liquor because of the high liquor tax. In Massachusetts they have no sales tax on liquor. What the state really needs to do is look at the numbers and review their tax rates." Vijay Patel, owner of Discount Package Store in New Britain says he can't afford to stay open an extra day as a small liquor store. "Our sales totals are no match for last year and there's no time for rest,"said Patel. "I don't have time to see my kids. They go to school and by the time I get home at 10 p.m. they're already asleep." In neighboring Bristol, Bruce Wolfert, owner of Wolf's Wines& Spirits in Bristol said the law hasn't done what the government promised. "It has made no difference at the end of the week,"said Wolfert. "Our sales are about the same, except now we're working seven days instead of six. That means we're spending more on electricity and heating and giving up family time." Raj Chaddah, owner of Town& Country Discount Liquors in Bristol. sees the law as a huge burden. "Our sales have just been spread out over another day, with • the extra cost of manpower,"said Chaddah. Marvin Friedman, owner of Maple End Package Store in Bristol, said the law eliminates profits from people stocking up for Sunday. 'When the law was first signed we didn't open on Sunday and our business began to fall off,"said Friedman. 'When we opened Sunday, it got back to where it was, but there's been no real difference in total volume of sales. Before we could open on Sundays,people would come in Saturday to stock up. Now there's no incentive. People may show up on Sunday, but nobody is buying extra.Any business that's open for more days pays additional costs, so we actually lose out." Colorado:Sunday Sales Leads to Wine&Beer in Grocery Stores Surrounded by a cadre of gas station managers and owners, primarily representing 7-Elevens and Loaf'N Jugs, Parker stood in front of 66,000 dramatically stacked signed petitions during a press conference in the Old Supreme Court Chambers hearing room at the state Capitol on Tuesday. The petitions, collected at 7-Eleven and Loaf'N Jug stores statewide, ask the Legislature to allow gas stations and grocery stores to sell full-strength beer. Until last year(2008), Colorado law prohibited liquor stores, which sell full-strength beer, from remaining open on Sundays. 20 http://www.municipalbev.com/sundaysales.htm 1/31/2014 MMBA: Sunday Sales: Convenience at What Cost? Page 7 of 13 That had given an opening to convenience store owners, who are able to sell only lower strength 3.2 beer,permitting them a monopoly on liquor sales one day each week. However, as soon as the Legislature passed a partial repeal of the state's Blue Laws in 2008 allowing liquor stores to stay open and sell full-strength beer on Sundays, Parker says convenience stores such as his lost 75 to 80 percent of their Sunday beer sales. The storeowners say beer sales make up 6 percent of their total revenue. Parker said now that 3.2 beer is obsolete, "The loss of sales has hurt us, and today we are only asking for the ability to compete." Parker could be in luck. If state Sen. Jennifer Viega, D- Denver, and Rep. Buffie McFadyen, D-Pueblo West, are successful, a bill they are moving through the Legislature this year would allow the sale of full-strength beer at convenience stores. "I certainly recognize that, with the passage of Sunday sales (last year), there has been a detrimental impact on you, on your sales and to the grocery stores who are now selling an obsolete product,"Viega said to the room of storeowners. "Consumers want easy access(to products), and this allows for that" Not everyone is behind the change. Owners of liquor stores and craft breweries said allowing convenience and grocery stores to sell full-strength beer is paramount to putting another nail in their industry's coffin.Although liquor store and brewery owners say the simple convenience of not having to make é special trip to a liquor store to buy full-strength beer seven days a week is of concern, they also expressed the fear that grocery stores will undercut the price of their liquor products as part of a rewards program for frequent shoppers. Currently, King Soopers and Safeway discount gasoline to reward customers who reach a spending threshold. 'This legislation is not about convenience and fair competition, it's about jobs,jobs,jobs,"said Jeanne McEvoy, executive director for the Colorado Licensed Beverage Association. McEvoy said similar legislation in other states has had a devastating effect on liquor store owners, and she said South Dakota offers an example of how such a policy can destroy businesses and reduce employment opportunities statewide. In South Dakota, 48 liquor stores were in business before similar legislation was passed. Within 10 years of the legislation's passage, only three remained. She estimates that 700 liquor stores in Colorado would close within three years should the proposed law pass. "If the state of Colorado has a problem with Sunday sales, then fix Sunday sales,"McEvoy said. "But robbing Peter to pay Paul is never good policy." However, the bill, which was introduced this week, may not 21 http://www.municipalbev.com/sundaysales.htm 1/31/2014 MMBA: Sunday Sales: Convenience at What Cost? Page 8 of 13 have such a dire consequences for owners of Colorado's liquor stores, supporters said. Five states, including Colorado, still sell 3.2 percent beer while 36 states allow beer and wine sales in grocery stores, McFayden said, adding that those 36 states have found ways to make it work. The Effort Continues in 2013: Battle Brewing Over Beer in Supermarkets By Peter Marcus, The Colorado Statesman Another legislative brouhaha is brewing this year over whether to allow more supermarkets and convenience stores in Colorado to sell full-strength beer, wine and liquor. The battle is nothing new to the legislature. This year would mark the fifth most recent attempt at allowing grocery and convenience stores to sell full-strength beer. The last effort was in 2011 when two bills that would have allowed the sale died. It is a polarizing issue, with supermarkets and convenience stores on one side of the fence, and craft brewers and liquor stores on the other side. But Rep. Kevin Priola, R-Henderson, said he is forging ahead this year with a measured plan to allow more grocery and convenience stores in Colorado to sell full-strength beer, wine and liquor. Rather than open the sale up to all supermarkets and convenience stores, Priola would like to first expand the current cap from one to five on liquor licenses offered to retailers. Current Colorado law prohibits the sale of full strength beer, wine and liquor in most supermarkets and convenience stores. - But state law permits owners to hold one liquor license, which is why so-called"big-box stores"like Target and Rite Aid, have one flagship location where they sell full-strength alcoholic products.All the other locations are restricted to selling 3.2 percent or lower beer, known as"near beer." After The Colorado Statesman first wrote about Priola's bill last month, some statehouse observers believed that the Adams County lawmaker would introduce the legislation as one of his first three bills. But Priola said bill drafters put the measure on paper before it was ready. He plans on introducing the bill in the next two weeks. "Full-strength beer is in supermarkets, it's just one license," commented Priola. "The additional licenses affects more than just grocery stores. It also would help out folks like Applejack one and Spirits]and Argonaut[Liquor], as well as many other small business persons who want to have more than one location." Priola would not disclose whether he had been approached by anyone to draft the bill, such as by the supermarket or convenience store lobby. He said he is working with all sides on the issue. 22 http://www.municipalbev.com/sundaysales.htm 1/31/2014 MMBA: Sunday Sales: Convenience at What Cost? Page 9 of 13 °Overall, the goal I've had is to come to some piece of legislation that helps here, helps there, and in the end leaves most folks relatively harmless,"said Priola. "I've sat in business for four years, I've heard the issue over and over, I feel like I know more about the issue than most," Priola added, noting his past committee assignments to the House Business Affairs and Labor Committee, and then to the House Economic and Business Development Committee. "I can kind of cut through the BS that you hear from both sides on what will and what will not happen." Bill frustrates craft beer industry But Priola will surely face another heated exchange. He is already receiving resistance from the craft brew industry and from smaller package stores. They are fearful that expanding licenses would tilt the playing field and put them out of business. The Colorado Brewers Guild, the Wine and Spirits Wholesalers Association of Colorado and the Colorado Licensed Beverage Association have all told The Statesman that they have concerns about the legislation, but they are waiting until a measure is introduced before officially supporting or opposing the proposal. Priola is attempting to gain their support by including language that focuses on smaller craft breweries. His measure would allow breweries that produce only a limited number of barrels per year to sell their product in all supermarkets and convenience stores in the state. The lawmaker said he is still working on a gallon-production limit to qualify. The legislation would also ban the sale of caffeinated alcoholic beverages and place an alcohol limit of 10 percent on so- called"alcopops,"or flavored alcoholic beverages, that can be sold in grocery and convenience stores. Brian Dunn, owner of Great Divide Brewing Company in Denver, believes the measure is a backdoor, small step to allowing full-strength beer in all supermarkets and convenience stores in Colorado. He said the current model works for his industry, noting double-digit growth, and he was reluctant to see change. "We don't like it,"lamented Dunn, who sat down with Priola to discuss the bill. "Craft is growing well enough without being in grocery stores, we don't feel like we need it." Sales of craft beers rose 14 percent in the first half of 2012 over the same period in 2011, and production rose by 12 percent, according to the Boulder-based Brewers Association. The industry also saw revenue growth of 12 percent in 2010 and 15 percent in 2011. Colorado ranks second for the most number of breweries, and it ranks third in breweries per capita. There are 161 licensed craft breweries in Colorado, with over 60 in planning, according to the Colorado Brewers Guild. 23 http://www.municipalbev.com/sundaysales.htm 1/31/2014 MIVIBA: Sunday Sales: Convenience at What Cost? Page 10 of 13 Since opening in 1994, Great Divide has seen unprecedented growth. Last year the brewery saw a 24 percent increase in barrel production, and the year before that there was a spike of nearly 30 percent In Colorado alone, the craft beer company grew by nearly 50 percent, marking multiple years of similar growth, said Dunn. "We're growing fine in Colorado,"he said. We don't need Priola's bill to help us grow." "You didn't ask us before you wrote the bill,"Dunn continued of Priola's effort. "We're not in favor of it. I'm quite sure the big brewers won't be in favor because they're excluded. What are you doing?Nobody likes this bill, except for grocery stores." Grocers and retailers qet behind effort And indeed grocery stores are supporting the proposal. Kris Staaf, regional director of public affairs and government relations at Safeway, said expanding the cap allows supermarkets and convenience stores to show what small growth might look like. She also pointed out that the bill would be subject to local government and community approval, which does not guarantee that supermarkets would be allowed to quickly expand their alcohol sales. Safeway's flagship location for selling alcohol is located in Littleton at Broadway and Mineral. Staaf said a study has shown that since the store started selling full-strength beer, wine and liquor five years ago, there has not been a negative impact to surrounding package stores. "There was a lot of doom and gloom,people predicted all these worst case scenarios when that store went up with liquor,"said Staaf. "I can tell you that the businesses around it, the liquor stores around it, we still have them in the same radius that we did before." "There's one that if you walk out the front door and turn to the right,you can actually see it from the front door,"she continued. "But also other liquor stores have opened their doors in the area since we've been open." Staaf also tried to expel fears that larger chains would not stock smaller craft brews, noting that the Safeway store in Littleton carries a wide selection of Colorado beer and wine. "From the smaller guys to the larger brewers, it's a really nice, healthy mix,"she said. "So, if you look at the crystal ball, are we going to carry every single product?Probably not. But what we're going to try to do is if we were able to do something where we can sell like we do in the Littleton store, I think you can look at a nice product mix." Chris Howes, president of the Colorado Retail Council, said the issue comes down to consumer convenience and bringing Colorado in line with other states. 24 http://www.municipalbev.com/sundaysales.htm 1/31/2014 MMBA: Sunday Sales: Convenience at What Cost? Page 11 of 13 "We'd like to eventually bring Colorado up to speed and modernize its liquor licensing so that we look like the rest of the country,"said Howes, whose organization has been lobbying for years to extend alcohol sales to all grocery and convenience stores. Howes does not believe that Priola's bill offers a backdoor to extending alcohol sales in Colorado. "I think it's a front door,"he said. "It's a small door, but definitely the front door" "Any step to bring a popular product to our members'stores is a positive one,"Howes added. "We'd like to see eventually all of our grocers be able to sell these popular products." Proponents Proclaim:Sunday Liquor Sales In Colorado Lead To Extra $2 Million In Tax Revenue For State. However The Denver Daily News: The Distilled Spirits Council reported fin 2010]that Sunday liquor sales have helped Colorado's alcohol tax revenues grow 6 percent over the past year, though local liquor stores are split on whether the expanded hours are anything to toast. Colorado State Treasury's data shows that liquor, beer and wine tax revenues increased by$2,056,858 in the 12 months following July 1, 2008, when the bill allowing Sunday liquor sales went into effect.Although the data doesn't separate the tax revenues generated by liquor stores from bars and restaurants, the Distilled Spirits Council—a group that represents a majority of distilled spirit companies—says that since more than 75-percent of that tax revenue comes from liquor stores, and because Colorado restaurants and bars have seen their revenues drop in the past six months, it's credible to say that liquor stores played a big role in that 6- percent tax revenue increase. However: The Distilled Spirits Council admits the figures are unverifiable estimates. In addition, the figures include the 2%national average gain for that year. See Growth&Justice Article for More: http://gmwthandiustice.tvpepad.com/mv weblocr/2011/02/dont- count sundavliquor-tax-revenues-lust vet.html Legislative Action Sample City Resolution, (PDF) Sample Letter to Leaislator/Governor, (PDF) Newspaper Editorials: 25 http://www.municipalbev.com/sundaysales.htm 1/31/2014 MMBA: Sunday Sales: Convenience at What Cost? Page 12 of 13 Fergus Falls Journal Sunday Liquor Law Fine As is Make no mistake, it would be beneficial to consumers if the Legislature passed a bill to allow liquor stores to sell alcohol on Sunday. However, the hardship it would put on liquor stores, including municipal liquor stores in Fergus Falls and the surrounding area, seem to outweigh the convenience to consumers. Since the days of prohibition, the laws preventing the sale of alcohol at liquor stores on Sundays was to maintain control over the sale of a product that clearly can be harmful if abused. That said, the fact is that Minnesotans are used to the law, and have planned their shopping patterns around it. Changing it would mean liquor stores, both private and municipal, would spend more money on staffing, utilities and other expenses, and would not likely see an increase in revenue, since sales would be spread out over seven days instead of six. Other than convenience, there does not seem to be a dire need to change the law. Let's just leave it as it is. Albert Lea Tribune . With six days a week to purchase liquor, one has to wonder why it would be necessary to buy alcohol on Sundays. While the state legislature ponders whether to allow such sales, we have to step up and say please don't allow it. According to various websites, alcohol is a contributing factor in four most-commonly committed crimes:minor possession, open container,public intoxication and DWI, obviously the most serious of the four.And one site said that alcohol was a factor in 40 percent-or nearly half of all violent crimes. We know that eliminating the sale of alcohol all together simply breeds new crimes and really isn't a logical option these days. From an economic standpoint, municipal liquor stores aren't necessarily going to sell more alcohol than they do in six days, and they will incur expenses associated with being open- paying staff hours, lights, etc. However, with six days to purchase alcohol, and given the crime statistics and economic impact locally, we doubt it's necessary to offer liquor an additional day. Austin Daily Herald It shows up on the legislative agenda every couple of years, but there never seems to be much support for the idea of expanding Minnesota liquor store operating hours to include Sundays. 26 http://www.municipalbev.com/sundaysales.htm 1/31/2014 MMBA: Sunday Sales: Convenience at What Cost? Page 13 of 13 As in the past, this year's version of the bill should be allowed to quietly fade away because for a variety of reasons Minnesota does not need Sunday liquor sales. There has never been any solid indication that opening liquor stores on Sunday would create an appreciable benefit for Minnesotans(or anyone else). There are some reasons that it is a bad idea. For one thing, anyone who can't get himself or herself organized to stop by the liquor store prior to Sunday probably has less need than most to buy any liquor. More seriously, it is very clear Sunday hours would be a problem for small operators who would, for competitive reasons, be forced to open their stores on Sunday without gaining any appreciable sales. Minnesota's leaders have already introduced a multitude of tax and policy plans that, if they become law, are going to break the backs of some small businesses.Another hardly seems like good policy. Minnesota has gotten along just fine without Sunday liquor sales. No one is harmed by keeping the current law intact, and there would be harm for changing it. Letting the bill die would be good public policy. 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Site by Casseriv Media • • 27 http://www.municipalbev.com/sundaysales.htm 1/31/2014 City of Hawley Resolution 11-03 Resolution Advocating Against Sunday Off-Sale Liquor WHEREAS, the State of Minnesota currently prohibits off sale liquor store sales on Sundays, and WHEREAS, bills have been introduced to allow off sale liquor stores to make sales on Sundays, and WHEREAS, bills have been introduced to allow off sale liquor stores to make sales for extended hours on two major holidays, Thanksgiving and Christmas Eve, and WHEREAS, the City of Hawley municipal liquor store is proud of the role we play in keeping alcohol out of the hands of minors, and WHEREAS, the City of Hawley would not receive additional revenue from Sunday sales as we feel strongly that the same purchases would simply be spread out over 7 days instead of 6 days, and WHEREAS, the City of Hawley would see marked increases in overhead in the areas of staffing, snow removal, and utilities at a time we are being asked to conserve. BE IT RESOLVED, the City Council of the City of Hawley, upon careful consideration and review, hereby opposes any change in the current State Liquor Statutes that would extend days or hours of off sale liquor facilities. ADOPTED by the Hawley City Council this the 14th day of February, 2011. ATTEST: ` % Gary Vohnson Lisa•Jetvig,.- Mayor Clerk Treasurer, '\ • 28 MMBA Minnesota Municipal Beverage Association uaec�a€nainur+ ;, .ti INCORPORATED YI}AAUI� [AT1Sh�r An organisation composed of the municipally oper®tod dispensaries of Minnesota "1 OFFlCEle PR€6IP NT Tom Agnes April 8,2010 Brooklyn Center VICE P131031PPNT Len&Mang Representative Atkins, Plna City TREas RIN The Minnesota Municipal Beverage Association representing:Minnesota's fitlin elm awry municipal liquor operations,is opposed to legislation allowing Sunday Off-Sale, comma Tarn A2nas Sunday Sales will spread six days of sales over seven days with additional Ora®Ilyn Cow expenses that will reduce revenue to our member cities. Nenny Pronto Malang In addition, If competitors are open on Sunday but it Is not economically atm grausam feasible for our members to be open,there is the real possibility of refli permanently losing customers. This scenario would also negativity impact Fifty LAW revenue. OWN 011111304001 HutnhinsaA in sum,If passed,allowing Sunday©fi sale of alcohol could result in a Brio fire Kant fie ative fiscal impact to cities where municipal liquor stores are located. 3�Iironei, Rob konlin Thank you for the opportunity to state our position. P41E/I A&pigs km emirs ?lee contact me if you have questions. Pins City Cory/4 Sincare , MO CAM OtoPolot JoyAa R ftmann ail psZak Wino Perk I' Executive Director Waft rinetwy OIAGY a RPM Kns5 M1 F-enaytiva Pirogior a Ei91{Q 21ii3� Minnsepalln,MN 55455 710472400 9.40434-<OA FFxt 70 4724155 ineeyoUnIGINIDamin a 29 City of Farmington 430 Third Street ' ,!x-1; Farmington, Minnesota ° 1,Ag�� ' 651.280.6800•Fax 651.280.6899 sT`'�G� www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Robin Hanson Finance Director SUBJECT: Utility Bills—3rd Party Inserts DATE: February 10, 2014 INTRODUCTION Periodically,the City has been asked to include inserts (ex. informational/marketing materials) for third parties in its utility bills. To date the City has said no. Since the City does not currently have a policy addressing this situation, staff would like to discuss this issue with Council and ascertain how you would like to proceed. DISCUSSION The inclusion of inserts in the City's utility bills raises several questions. The initial set of questions is outlined for you in this memo. Who would be allowed to include information in the City's utility bills? If the City said yes to one group,whether it be a non-profit organization, commercial business or group of organized residents, staff has been advised that to avoid discrimination or violation of someone's freedom of speech it would be required to say `yes' to all groups regardless of their message content. Who would be responsible for reviewing the materials to ensure they were professional (i.e. spelled correctly,punctuated properly, etc.)? This review would be limited to a review for professional quality. To avoid discrimination or violation of freedom of speech the City would not be able to alter the message (i.e. content). Rather to ensure the professional quality of the materials being included with the City's mailing, staff would be reviewing for proper grammar and punctuation, etc. Completing this review would likely involve the staff time of at least two of the following three people: City Administrator, Finance Director and/or City Attorney. Who would pay for the additional costs involved,such as printing materials, delivery of materials, additional postage, etc.? Staff would recommend the third party/ies be responsible for all additional incremental costs • incurred. How would the City handle multiple requests, for example, five different groups would like their information included in next month's utility bills? Would the City permit all interested parties to include their materials or would the City limit the number of insertions included each month? If the number is not limited,the staff time involved 30 in this process could be significant. Multiple insertions would also likely impact the schedule for the City's vendor to insert these materials, impacting the lead time required. If the number of inserts is limited,how would the decision be made as to whom to include and by default exclude? Would the number of inserts to be included be allocated on a first-come, first-serve basis? Or would the City need to maintain a schedule of interested parties and rotate the opportunity to provide equal access? The City will soon be offering customers the option to receive e-bills rather than statements in the mail. Would the City still be expected to send information to those customers who have opted for e-bills? If the City were to make this opportunity available,what other effort or efforts would the City Council like staff to cease doing to make time available to coordinate and communicate timelines for submission, review of information, submission to our printing vendor, review of invoices, allocation of charges, billing of the costs to participants, collection follow-up, etc.? Is there an alternative way to provide third parties access to the City's customer lists? The information is public and the Citycould provide a copy of its customer list to interested parties. Each month,before dissemination,this list would need to be reviewed to ensure employee information was excluded. Also,the City would need to decide how it would distribute the information(paper and/or electronically) and whether or not to distribute this information for free or charge a fee to cover its cost of preparation. Neighboring Cities The City asked five of its neighboring cities how their City handled these requests. Three of the five cities responded. All three cities indicated they do not allow the inclusion of third party materials in their utility bills. Two of the cities shared specific reasons and/or questions which are included in some of the questions outlined in the memo above. Legal Input Staff spoke with the City Attorney who indicated they were not aware of any cities that permitted the inclusion of third party materials in their utility bills. For those cities which included information in their utility bills it was limited to information about their local government programs. BUDGET IMPACT Additional costs for preparing, delivering and printing the inserts and additional postage, if any, would be billed to the third party. Staff time spent on this effort would reduce the amount of staff time available to complete their other City responsibilities. ACTION REQUESTED Review, discuss and provide direction to staff to develop a City policy regarding the insertion of third party information in the City's utility bills. Respectfully submitted, Robin Hanson,Finance Director 31 4scARM/ City of Farmington Vil ICA 430 Third Street P „:,! g Farmington, Minnesota ,, 651.280.6800•Fax 651.280.6899 4s''A pRoto�a www.ci.farmington.mn.us TO: Mayor, Councilmembers, City Administrator FROM: Kevin Schorzman, City Engineer SUBJECT: Akin Park Estates Project Bid Update DATE: February 10, 2014 INTRODUCTION/DISCUSSION Bids for the Akin Park Estates project will be taken at 10:00 a.m. on Monday, February 10,2014. As you will recall, the project is being bid with two alternates. Alternate "A” includes the replacement of all of the curb and gutter in the project area east of Akin Road,with spot patching in the project area west of Akin Road. Alternate `B" includes the replacement of all curb and gutter in the project area. Because we will have the bids in hand prior to the workshop Monday evening, staff felt it would be a good opportunity to discuss the bids, and the financial ramifications of the alternates prior to the Council meeting on February 18, 2014. No specific contractor information will be shared at the workshop, it will be an opportunity to evaluate the financial impact of the bids, and discuss the pros and cons of each alternate. BUDGET IMPACT The full budget impact will determined by the action taken at the February 18, 2014, Council meeting. However, through discussion at the workshop, Council will have an idea of the budget impact of each alternate. ACTION REQUESTED For discussion. Respectfully submitted, Kevin Schorzman City Engineer 32