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HomeMy WebLinkAbout08.04.14 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 AUGUST 4, 2014 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 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.) a) Response to Steve Endres—Administration Information Received b) Response to Dan Olson—Administration Information Received 7. CONSENT AGENDA a) Approve Council Minutes (7/21/14 Regular) Approved b) Award Contract—City Mowing Contract—Parks and Recreation Approved c) Policies and Procedures—Cell Phone Policy—Human Resources Pulled d) Appointment Recommendation Fire Department—Human Resources Approved e) Appointment Recommendation Fire Department—Human Resources Approved f) Appointment Recommendation Fire Department—Human Resources Approved g) Appointment Recommendation Fire Department—Human Resources Approved h) Appointment Recommendation Police Department—Human Resources Approved i) Approve Bills Approved REGULAR AGENDA (The Council takes a separate action on each item on the Regular Agenda. If you wish to address the Council regarding any or all of the items on the Regular Agenda,please address the item when the item is discussed Speakers will be given at least three minutes to speak per item.Additional time may be granted to speakers representing two or more persons.) 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS,REQUESTS AND COMMUNICATIONS a) Award Contract—Farmington/Lakeville Trail Crack Sealing Project— Engineering R45-14 b) June 2014 Financial Review—Finance Information Received 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) Consider Possible Settlement of Pending litigation(Supplemental— Discussion after Executive Session) Approved Settlement 13. COUNCIL ROUNDTABLE 14. EXECUTIVE SESSION a) Closed Session Under Attorney/Client Privilege to Consider a Potential Settlement Agreement in Pending Litigation 15. 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. icy City of Farmington 430 Third Street Farmington,Minnesota 651.280.6800 -Fax 651.280.6899 "+a,, ,a°, www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Response to Steve Endres DATE: August 4, 2014 INTRODUCTION Mr. Steve Endres addressed the city council at your July 21, 2014 meeting. Mr. Endres requested a waiver of the fee to pick up the garbage that will be created at their National Night Out event scheduled for Tuesday,August 5, 2014. DISCUSSION Attached for your review is the response that was sent to Mr.Endres. ACTION REQUESTED Review the attached response and provide any direction you feel is needed. ATTACHMENTS: Type Description o Backup Material Endres Letter • �oEE /., , City of Farmington z 430 Third Street Farmington,Minnesota 651.280.6800 o 651.280.6800•Fax 651.280.6899 4.1.A� � www.Ci.farmington mnus July 22, 2014 Steve Endres 18040 180th Court West Farmington, MN 55024 RE: Citizen Comment Request Dear Steve: Thank you for taking the time to address the Farmington City Council at their July 21, 2014 meeting. At that meeting you requested that the fee associated with picking up the refuse that is created at your neighborhood National Night Out event be waived. City staff discussed your issue and how it could impact future requests in this area. While we are very happy that your event is large enough to create a significant amount of refuse, city staff has some concerns about the precedent this would create for other community events. Our solid waste program is an enterprise fund that needs to pay for itself each year. With the potential impact on future requests in mind, city staff would not recommend a waiver of the fee. I believe one of my city staff members shared some ideas on how to reduce the amount of refuse by doing more recycling. If you would like additional information in this area please let me know. If you have any questions or would like to discuss this issue please feel free to contact me at 651-280-6801. Thank you for your time on this important matter. Best wishes, David McKnight City Administrator Cc: Farmington City Council Packet . ► City of Farmington 430 Third Street ca Farmington,Minnesota 651.280.6800 -Fax 651.280.6899 , e' www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Response to Dan Olson DATE: August 4, 2014 INTRODUCTION Mr.Dan Olson addressed the city council at your July 21, 2014 meeting. Mr. Olson asked if the city had any/enough environmental programs in place. DISCUSSION Attached is the response letter that was sent to Mr. Olson. ACTION REQUESTED No additional action is needed on this issue. ATTACHMENTS: Type Description ® Cover Memo Dan Olson Response 7114/ City City of Farmington y 430 Third Street �n Farmington,Minnesota c� 651.280.6800•Fax 651280.6899 0 0 -'.T." 1'@" www.cilarmington.mn.us July 23, 2014 Dan Olson 4045 250th Street East Hampton, MN 55031 RE: Citizen Comment Request Dear Dan: Thank you for taking the time to address the Farmington City Council at their July 21, 2014 meeting. At that meeting you asked if the City of Farmington had any or enough environmental programs in place. The city does a tremendous amount of work in this area. The city has an Illicit Discharge Program which includes procedures for timely response in investigating, locating and eliminating reported illicit discharges. Farmington has procedures for responding to spills and for preventing those spills from entering the city's storm sewer system. Annually, areas are inspected to ensure non-storm water discharges are not entering Farmington's water bodies. There are plans in place to create additional emergency response procedures and to update city staff training in illicit discharge recognition and reporting. Farmington also has established outreach and education objectives which include: • Distributing environmental education information in the city newsletter and calendar on items not limited to, but include, drainage and utility easements, pet waste, household chemicals, and yard waste • Holding environmental education events, such as the Earth and Arbor Day Celebration • Training of city staff on water quality priorities • Working with outside agencies on monitoring programs, such as the Wetland Health Evaluation Program • Working with builders and developers within the city on erosion control practices • Inspecting building site under construction weekly to make sure sediment is not entering the storm sewer system • Partnering with residents in the Adopt-A-Pond program for litter pickup and illicit discharge notification The above list only touches on what the City of Farmington does and provides for illicit discharge and environmental education and outreach. It is a priority for Farmington to keep our water clean and plentiful for our residents and visitors. If you have any questions or would like to discuss this issue please feel free to contact me at 651-280-6801. Thank you for your time on this important matter. Best wishes, David McKnight City Administrator Cc: Farmington City Council Packet 4``1A �► City of Farmington 430 Third Street Farmington,Minnesota 651.280.6800 -Fax 651.280.6899 '44'4 " www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Cynthia Muller,Executive Assistant SUBJECT: Approve Council Minutes (7/21/14 Regular) DATE: August 4, 2014 INTRODUCTION Attached are the July 21,2014, city council minutes. ACTION REQUESTED Approve the attached July 21,2014, city council minutes. ATTACHMENTS: Type Description o Backup Material Minutes COUNCIL MINUTES REGULAR July 21, 2014 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 Members Absent: Donnelly,Fogarty Also Present: Joel Jamnik, City Attorney; David McKnight, City Administrator; Robin Hanson, Finance Director;Adam Kienberger, Community Development Director;Randy Distad,Parks and Recreation Director;Kevin Schorzman, City Engineer;Brenda Wendlandt, Human Resources Director; Cynthia Muller, Executive Assistant Audience: David Hartnett, Tom and Patricia Rothe,Randy and Nancy Schmitz 4. APPROVE AGENDA MOTION by Bartholomay, second by Bonar to approve the Agenda. APIF,MOTION CARRIED. 5. ANNOUNCEMENTS a) Recognize Donation from Louis Schmitz Foundation Randy Schmitz presented the city with a check for$1,000 from the Louis Schmitz Foundation. Mr. Schmitz gave a history of forming the non-profit foundation to give children the opportunity to participate in sports activities if they are financially unable to do so. In addition to this,the foundation also provides two scholarships to Farmington High School students planning to attend a post- secondary college, and provide financial assistance to community projects. 6. CITIZEN COMMENTS Mr.Richard Graelisch, 3330 213th Street W,mentioned there are several large potholes in the street going to the Dairy Queen. Mr. Dan Olson,4045 250th Street E,Hampton, stated his concern is that Farmington may not have enough environmental programs. He was concerned whether Farmington is really focusing on environmental waste. He wanted to make sure the City stays as clean as possible. He noted the sidewalks by Highway 3 are covered in weeds. Mr.Dave Hartnett,Dunn Bros Coffee, 20700 Chippendale Avenue W, stated National Night Out will be held August 5,2014. To obtain information about the event,residents Council Minutes(Regular) July 21,2014 Page 2 can go on the city's website, or see the City News and Recreation Guide. It is a good opportunity to get to know your neighbors. Tamarack Ridge Center will be hosting a block party and a fundraiser for the police dog,Bosco. Residents can also request the police or fire departments to stop at their block parties. Mr. Steven Endres, 18040 180th Court W, stated he is coordinating a National Night Out event on their cul-de-sac. Last year they had 125 people attend and ran into an issue with garbage. Four families were taking care of the garbage so they would not incur any overage fees. He asked if the city would allow them to put out the extra garbage and not incur any extra fees. They are expecting 200 people. Tom and Patricia Rothe, owners of Farmington Outlet on Highway 3, stated they have many upgrades coming to their lot. They offer a variety of discounted products, some brand new. Items vary week to week. They were selling the items wholesale, but have now opened a retail store. 7. CONSENT AGENDA MOTION by Bartholomay, second by Bonar to approve the Consent Agenda as follows: a) Approved Council Minutes(7/7/14 Regular)(7/14/14 Workshop) b) Received Information Second Quarter 2014 New Construction and Population Estimate—Building Inspections c) Adopted RESOLUTION R41-14 Approving Gambling Event Permit Farmington Youth Hockey Association-Administration d) Adopted Joint RESOLUTION R42-14 Amending Existing Maintenance Agreement for 225th Street—Planning e) Accepted Aquatic Feasibility Study Final Report—Parks and Recreation f) Adopted RESOLUTION R43-14 Accepting Donation to the 2014 Dew Run— Parks and Recreation g) Approved Agreement Rambling River Center Garage Driveway Project—Parks and Recreation h) Approved Bills APIF,MOTION CARRIED. 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS,REQUESTS AND COMMUNICATIONS a) Approve Settlement Agreement and Franchise Extension—Charter Cable Partners,LLC—Human Resources An audit of franchise and PEG fees was performed for 2009—2011. After the audit the city determined that Charter had underpaid fees for the extended audit period. Charter disputed the audit and arrived at a different conclusion and has agreed to pay the city$4,905.02 to settle claims on the fees. Part of the agreement includes extending the franchise until December 31, 2014. The proceeds will be submitted to the Cable Commission to help offset the costs of the Council Minutes(Regular) July 21,2014 Page 3 audit. MOTION by Bartholomay, second by Bonar to approve the Settlement and Release Agreement between Charter Cable Partners, LLC and the City of Farmington. APIF,MOTION CARRIED. b) Adopt Resolution Allowing Charter to Modify and Relocate Community Programming Channels Charter Communications is requesting to relocate community programming channels. They are transitioning to an all-digital platform for the delivery of video channels and programming on approximately August 1,2014. Charter has requested to provide the government channels over less than six MHz each and to relocate those channels. The city has agreed,provided these channels continue to be offered on the basic tier service,that Charter notify subscribers of the changes, and that Charter provide no less than one government channel be provided as a high definition channel. MOTION by Bartholomay, second by Bonar to adopt RESOLUTION R44-14 allowing Charter to modify and relocate the local community programming channels. APIF,MOTION CARRIED. c) City News Update City Administrator McKnight provided updates on several projects. Construction Permit Revenue—Growth is returning. Through July 4,2014, the city has issued 56 new residential building permits and revenue is over$229,000 which is 73%of the budget. Foreclosure Update—Notice of Pendency Filings and sheriff sales have decreased the last couple years. There were 70 sheriff sales in 2013 compared to 206 sheriff sales in 2010. This is a sign of economic recovery. Liquor Store Operations—Increased sales are continuing in 2014. The month end cash balance has improved each month. Council set a goal of having$375,000 in hand so the liquor operations fund can pay the bills as we go. We have far surpassed that line. Hotel Project—Staff is working with the developer and the land owners on this issue. Construction should start this fall with opening in the spring or summer of 2015. The city has discussed assessments on the property with both parties and Council will discuss the issue at a future meeting. The city is very willing partners and this project is moving forward. The site is in Vermillion River Crossings,just south of the medical clinic. General Fund Balance—Most government costs are paid out of this fund. In past years in April,May and October,the fund balance has gone below zero and the city has had to borrow from other funds to pay the bills. In May 2014 the fund balance stayed above zero. All the work in setting policies is starting to pay off. At the end of June 2014,we have$3.8 million in the general fund balance. This is not extra cash, but money we need to pay the bills the rest of the year. We have Council Minutes(Regular) July 21,2014 Page 4 collected a significant amount of delinquent taxes. Increased building in the city means more revenue in terms of permits. Council has put solid budgets in place and staff is doing a better job of cash management. The city receives most of its funds in June and December, so departments have held off on large expenditures until we have cash in hand. Mayor Larson noted this is due to the plan that City Administrator McKnight and staff brought to the Council and the work of all employees by recognizing we had a problem that needs correcting. Debt Service Fund Balance—This fund is used to pay the debt the city issues. We are$789,000 below zero. In 2011 we were$2.6 million below zero. The fund is improving,but we have a long way to go. CIP Implementation—The CIP was adopted in August 2013. In the first years it focuses on street projects and in 2020 adds city equipment. The first project, Akin Park Estates, is underway. In 2015 we have the 195th Street project from Flagstaff Avenue to Diamond Path with intersection control changes. In 2015,we also have the Henderson Addition project. Strategic Plan—Council and staff developed a Strategic Plan early in 2014. This plan will shape the community for the next five to ten years. It will be brought to Council for formal adoption in August 2014. Financial Management Plan—this will take all of the work Council and staff have done with the strategic plan and the CIP and put it in one document so residents and staff know what was done to improve the financial situation and set the course for the future. Councilmember Bartholomay appreciated the work all of staff has done. Councilmember Bonar felt it is important we do this on a regular basis. Mayor Larson stated everyone is going in the same direction,we are setting goals and making progress. 11. UNFINISHED BUSINESS 12. NEW BUSINESS 13. COUNCIL ROUNDTABLE City Administrator McKnight: The city and school district will be holding a public office information session for anyone interested in running for City Council or School Board. Candidate filing for two Council seats is July 29—August 12,2014, at City Hall. Council Minutes(Regular) July 21,2014 Page 5 Finance Director Hanson: Notices have been included in utility bills and on the city's website regarding delinquent utility bills as of August 31,2014,notifying residents that staff will be starting the certification process to property taxes. City Engineer Schorzman: Akin Park Estates project has started. All road, curb and gutter has been removed. The contractor will begin installing new curb. One minor change is rather than removing three to five feet of driveways,the contractor has proposed to leave the concrete driveways and pour up to them. It will be a better end product and will save money in the end. This change order will be brought to Council in the future. Mayor Larson: Thrivent Financial will hold a shred-it event this week at their office in Tamarack Retail Center. This is a free document disposal event for residents. He reminded everyone to shop local as money spent in the community stays in the community. 14. ADJOURN MOTION by Bonar, second by Bartholomay to adjourn at 7:47 p.m. APIF,MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant o� ,y City of Farmington - •, 430 Third Street Farmington,Minnesota X 41 651.280.6800 -Fax 651.280.6899 " ,,A ° www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Jennifer Dullum,Natural Resource Specialist SUBJECT: Award Contract—City Mowing Contract DATE: August 4,2014 INTRODUCTION The City went out for quotes for mowing properties that,after being notified of violation of the City's weed ordinance,property owners have not complied with the requirements in the City's ordinance. Six quotes were received as shown on the quote summary below. The quotes were normalized based on the number of lots in 2011 and 2012(31 developed and 19 vacant). Developed lots are properties with existing homes and vacant lots are those in newer developments that have yet to be built on. The contract dates are from August 11, 2014 through April 4,2017. DISCUSSION Quotes were required to be submitted on Tuesday,July 29,2014. Six quotes were received as shown on the summary below: TOTAL Developed /2011&2012 Vacant /2011&2012 (2011&2012 Contactor Lots lot amt. Lots lot amt. amt.) I $41.00 $1,271.00 $47.00 $893.00 $2,164.00 I ammer's Lawn Care&Snow I'emoval $45.00 $1,395.00 $65.00 $1,235.00 $2,630.00 $64.00 $1,984.00 $64.00 $1,216.00 $3,200.00 I edlund Irrigation&Landscaping, I nc $49.00 $1,519.00 $89.00 $1,691.00 $3,210.00 I hlers Services&Plowing $65.00 $2,015.00 $70.00 $1,330.00 $3,345.00 allo Detail&Plow $70.00 $2,170.00 $140.00 $2,660.00 $4,830.00 It is recommended that the project be awarded to Eric's Turf Care at$41.00 per lot for developed lots and $47.00 per lot for vacant lots. BUDGET IMPACT None; charges are passed on to the property owners. ACTION REQUESTED Approve the attached contract accepting the quote from Eric's Turf Care and award the project. Respectfully Submitted, Jennifer Dullum Natural Resource Specialist ATTACHMENTS: Type Description o Contract Mowing Contract MOWING CONTRACT This AGREEMENT dated this ,VA day of us7L' 2014, by and between the CITY OF FARMINGTON, a Minnesota municipal corporation ("City") and 6'4 ,a Minnesota corporation("Contractor"). IN CONSIDERATION OF THE MUTUAL UNDERTAKINGS HEREIN, THE PARTIES HERETO AGREE AS FOLLOWS: Section 1. Scope of Work. A. The City hereby engages Contractor to provide mowing services in accordance with the Request for Proposals and as specified herein (in the event of a conflict, this contract shall control). Contractor shall mow only those areas identified by the City. B. Contractor will provide mowing services on those areas identified by the City .within 72 hours of notification from the City. C. The City's Inspector shall verify that the work is completed to the satisfaction of the City. Contractor's failure to mow to the City's satisfaction and in a timely manner shall be cause for termination of this Agreement by the City without notice. Section 2.Notification. • A. Lists of addresses or areas within the City that require mowing will be called, faxed or emailed (which ever the Contractor prefers) by the City to the Contractor. If there are no areas that require mowing, no list will be sent to the Contractor. If within the 72 hours of notification encompasses severe weather, as determined by the City, or site conditions prohibit equipment functionality, the City shall designate an alternate day for performance of Contractor's services. Section 3. Equipment. A. Contractor shall perform the work required under this Agreement using mowing equipment appropriate to the situation encountered which could include vacant properties on a development-wide scale or a single foreclosed residential property. Section 4. Contract Term. • A. Contractor shall commence services August 11, 2014 through April 4, 2017 (32 months). This Agreement may be terminated earlier by either party without cause upon thirty (30)days'notice to the other party,except as otherwise provided in this Agreement. Section 5. Payment. A. The City shall pay Contractor a unit price per lot as follows: $ /lot(developed lots) $ /lot(vacant lots) • B. The unit price per lot includes only time spent actually operating equipment and does not include downtime. The unit prices per lot shall cover all of the City's costs associated with the mowing. Contractor shall be responsible for all costs it incurs in the transportation. C. Application for payment shall be made monthly. Contractor may invoice multiple properties mowed in the City on separate lines on the same invoice. Upon approval of the invoice by the City,the City will remit the approved invoice amount directly to Contractor. Section 6. Documentation. A. Contractor shall be responsible for keeping and maintaining the following records per property and noted on each invoice submitted to the City. 1) The property address that was mowed. 2) The date and time mowing was performed. 3) For each property mowed; a time-stamped before and after photo must be submitted with the invoice to receive payment. 4) When submitting invoices to the City, "Weed Notice"must be written on the invoice. Section 7.Lowest Proposal Determination. A. Proposals will be normalized based on 31 developed lots and 19 vacant lots (actual mowed lots in 2011 and 2012)to determine the lowest"seasonal"submittal. Section 8. Emergency Response. During the contract term it may be necessary to have contract work done on an emergency basis. Upon the City's request for additional work, Contractor shall respond to the City's request upon 24 hours verbal or written notice. If the City's Engineer or designee determines it necessary,the City may hire another entity other than Contractor for completion of the requested work. Section 9. Independent Contractor. The City hereby retains Contractor as an independent contractor upon the terms and conditions set forth in this Agreement. Contractor is not an employee of the City and is free to contract with other entities as provided herein. Contractor shall be responsible for selecting the means and methods of performing the work. Contractor shall furnish any and all supplies, equipment and incidentals necessary for Contractor's performance under this Agreement. The City and Contractor agree that Contractor shall not at any time or in any manner represent that Contractor or any of Contractor's agents or employees are in any manner agents or employees of the City. Contractor shall be exclusively responsible under this Agreement for Contractor's own FICA payments, worker's compensation payments, unemployment compensation payments, withholding amounts, and/or self- employment taxes if any such payments, amounts, or taxes are required to be paid by law or regulation. Section 10. Extra Service. No claim will be honored for compensation for extra services or work beyond the scope of this Agreement without the written approval of the City. 2 Section 11. Insurance. Contractor shall furnish the City certificates of insurance from insurers duly licensed with the State of Minnesota covering public liability insurance, including general liability, automobile liability and bodily injury liability in an amount of at least $1,000,000 for injury or death of any one person in any one occurrence; and bodily injury liability in an amount of at least $2,000,000 for injuries or death arising out of any one occurrence. Property damage liability shall be furnished in the amount of at least $500,000. Contractor shall comply with all applicable insurance requirements of the Worker's Compensation Act. Contractor shall provide proof of worker's compensation coverage. The City shall be named an additional insured on the general liability policy. Section 12. Unsafe Conditions Reporting. Contractor shall promptly inform the City by telephone and in writing of any unsafe conditions on City streets or property discovered during the course of Contractor's duties, whether or not Contractor is able to remedy the unsafe condition. Section 13. Indemnification. Contractor shall indemnify and hold harmless the City,its officers, agents and employees, of and from any and all claims, demands, actions, causes of action, including costs and attorney's fees, arising out of or by reason of negligence in the execution or performance of the work or services provided for herein and further agrees to defend at its sole cost and expense any action or proceeding commenced for the purpose of asserting any claim of whatsoever character arising hereunder. Section 14. Covenant Against Contingent Fees. Contractor warrants that it has not employed any person to solicit or secure this Agreement for a commission, percentage, brokerage or contingent fee. Section 15. Governing Law. This Agreement shall be governed by the laws of the State of Minnesota. Section 16. Affirmative Action. The Contractor shall comply with all applicable laws relating to nondiscrimination,affirmative action,public purchase, contracting and employment. Section 17. Compliance with Laws and Regulations. In providing services under the Contract,the Contractor shall abide by all statutes,ordinances,rules and regulations pertaining to the provision of the services provided. Section 18. Utilities. The Contractor shall be obligated to protect all public and private utilities, streets or roadways, whether occupying a street or public or private property. If such utilities, streets or roadways are damaged by reason of the Contractor's performance of the services required under the Contract,the Contractor shall repair or replace the same, or failing to do so promptly,the City shall cause repairs or replacement to be made and the cost of doing so shall be deducted from payment to be made to the Contractor for mowing services. Section 19. Notices. Pursuant to this Agreement, notices shall be hand-delivered or mailed as follows: 3 AS TO CITY: City Administrator City of Farmington 430 Third Street Farmington,MN 55024 AS TO CONTRACTOR: • • Section 20. Miscellaneous. A. Contractor may not assign or subcontract any of the services to be performed hereunder without the written consent of the City,which consent shall not be unreasonably withheld. B. This Agreement shall become effective only upon its execution by both the City and Contractor. This Agreement shall not be modified, amended, rescinded, waived or terminated without the approval in writing of the City. IN WITNESS WHEREOF, the parties hereto have entered into this Agreement as of the day and year first below written. Dated• P' ,2014. CITY OF FARMINGTON By: Todd Larson,Mayor And .Ale,e1C,4 David McKnight,City A strator Dated: ,2014. CONTRACTOR: By: Its: And Its: 4 4 ARii* City of Farmington 430 Third Street Farmington,Minnesota 651.280.6800 -Fax 651.280.6899 4.4** 11030.6, www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Brenda Wendlandt,Human Resources Director SUBJECT: Policies and Procedures-Cell Phone Policy DATE: August 4,2014 INTRODUCTION The purpose of this memorandum is to provide information, update the cell phone policy and request approval to increase the cell phone allowance. DISCUSSION In January of 2008, the City Council approved providing a cell phone allowance to department directors in lieu of providing a City cell phone.The amount of this allowance is currently$25.00 dollars per month. Staff is requesting that this allowance be increased to$45.00 per month to help offset the actual costs associated with using a personal cell phone for City business. This allowance is equivalent to that provided to the City Administrator. The cell phone policy has been updated to include the information on the cell phone allowance and a red- lined version of that policy is attached. BUDGET IMPACT The cell phone allowance would be offset by no longer having to provide a City issued cell phone. ACTION REQUESTED Approve attached cell phone policy and the increase to the cell phone allowance provide to department directors. ATTACBMENTS: Type Description I) Cover Memo Cell Phone Policy Section 3.9— Cellular Phones and Personal Digital Assistant (PDA's) This policy outlines the use of City provided and personal cell phones and other mobile communication devices. The City provides cellular phones to employees who have a business necessity to telephone others or receive calls while outside of City buildings. Cellular phones are provided to employees for the sole purpose of enhancing the quality, timeliness and overall service level of local government activities. Guidelines 1) All City cellular services and billing plans will be established by City Administration, and audited periodically. 2) Calls should be limited to those necessary to perform assigned duties. 3) For the safety of City employees and the general public, employees are discouraged from using any mobile device while operating a vehicle. This includes direct connect. 4) Personal phone calls on City cell phones will be acceptable in those circumstances where it is necessary to contact a family member concerning matters of relative importance. All personal phone calls should be kept to a minimum and be as brief as possible. 5) In general, long distance calls should not be made on a City cellular phone. If a personal long distance call is made from the City cellular phone, the employee is responsible for reimbursing the City for the cost of these calls, as applicable. 6) Text messaging on City cell phones is only allowed for documented business purposes. If an employee receives a personal text message, the employee should notify the sender to refrain from sending text messages to the City cell phone. Additionally, the employee will be responsible for reimbursing the City for the cost of text messages. An employee should have no expectation of privacy in messages or files they create, send, read or listen to on City phones and other communication devices. 7) Employees whose electronic devices are camera enabled are prohibited from using the audio, video and/or camera functions while on City property or in City vehicles unless authorized in advance by the City Administrator or his/her designee. 8) While at work, employees are expected to exercise the same discretion in using their personal devices as is expected for the use of City devices. City policies pertaining to harassment, discrimination, retaliation and confidential information apply to the use of personal devices for work-related activities. 9) Text messaging, emailing and/or taking photographs or videos are prohibited while operating a vehicle. 10)Non-exempt employees are not expected to utilize cell phones, Blackberry's or other PDA's for City business outside of working hours unless the employee has received approval from his/her supervisor in advance. Cell Phone Allowance Upon request, the City may provide a cell phone allowance in the amount of$45.00 per month in lieu of a City cell phone for the following positions: City Engineer, Community Development Director, Finance Director, Fire Chief, Human Resources Director, Municipal Services Director, Parks & Recreation Director, and Police Chief. If a cell phone allowance is provided, the employee must provide documentation regarding the City cell phone use upon request by the City. 70/ yoO � City of Farmington p 430 Third Street Farmington,Minnesota 651.280.6800 -Fax 651.280.6899 ° .,4 ,,.+o www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Brenda Wendlandt,Human Resources Director SUBJECT: Appointment Recommendation-Fire Department DATE: August 4,2014 INTRODUCTION The recruitment and selection process for the appointment of a paid on-call firefighter in the Fire Department has been completed. DISCUSSION After completing testing,a pre-employment physical, and a thorough review by the Fire Department and the Human Resources Office, a contingent offer of employment has been made to Brian Mickelson, subject to ratification by the City Council. Mr.Mickelson meets the qualifications for this position. BUDGET IMPACT Fire fighters are paid an hourly rate of$10.57 per hour for all training and call hours.Funding for this position is authorized in the 2014 budget. ACTION REQUESTED Approve the appointment of Mr.Brian Mickelson as a paid on-call firefighter in the Fire Department effective on or about August 11,2014. 7e.oEFAR �,, City of Farmington 430 Third Street Farmington,Minnesota 651.280.6800 -Fax 651.280.6899 a►ao10*° www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Brenda Wendlandt,Human Resources Director SUBJECT: Appointment Recommendation-Fire Department DATE: August 4,2014 INTRODUCTION The recruitment and selection process for the appointment of a paid on-call firefighter in the Fire Department has been completed. DISCUSSION After completing testing, a pre-employment physical, and a thorough review by the Fire Department and the Human Resources Office, a contingent offer of employment has been made to Kevin Roach, subject to ratification by the City Council. Mr.Roach meets the qualifications for this position. BUDGET IMPACT Fire fighters are paid an hourly rate of$10.57 per hour for all training and call hours.Funding for this position is authorized in the 2014 budget. ACTION REOUESTED Approve the appointment of Mr.Kevin Roach as a paid on-call firefighter in the Fire Department effective on or about August 11, 2014. ?-f' 741-ktiV+ City of Farmington It' t4 430 Third Street Farmington,Minnesota 651.280.6800 -Fax 651.280.6899 ,4 fit00.4,.. www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Brenda Wendlandt,Human Resources Director SUBJECT: Appointment Recommendation-Fire Department DATE: August 4, 2014 INTRODUCTION The recruitment and selection process for the appointment of a paid on-call firefighter in the Fire Department has been completed. DISCUSSION After completing testing, a pre-employment physical, and a thorough review by the Fire Department and the Human Resources Office, a contingent offer of employment has been made to Michael Seelig, subject to ratification by the City Council. Mr. Seelig meets the qualifications for this position. BUDGET IMPACT Fire fighters are paid an hourly rate of$10.57 per hour for all training and call hours.Funding for this position is authorized in the 2014 budget. ACTION REQUESTED Approve the appointment of Mr.Michael Seelig as a paid on-call firefighter in the Fire Department effective on or about August 11,2014. �o�F City of Farmington x . 430 Third Street Farmington,Minnesota 651.280.6800 -Fax 651.280.6899 p c' www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Brenda Wendlandt,Human Resources Director SUBJECT: Appointment Recommendation-Fire Department DATE: August 4, 2014 INTRODUCTION The recruitment and selection process for the appointment of a paid on-call firefighter in the Fire Department has been completed. DISCUSSION After completing testing,a pre-employment physical, and a thorough review by the Fire Department and the Human Resources Office, a contingent offer of employment has been made to Richard Martin, subject to ratification by the City Council. Mr.Richard Martin meets the qualifications for this position. BUDGET IMPACT Fire fighters are paid an hourly rate of$10.57 per hour for all training and call hours.Funding for this position is authorized in the 2014 budget. ACTION REQUESTED Approve the appointment of Mr.Richard Martin as a paid on-call firefighter in the Fire Department effective on or about August 11,2014. Ai Mitt, City of Farmington �, 430 Third Street Farmington,Minnesota 651.280.6800 -Fax 651.280.6899 44,i.,4. fr°,, www.ci.farmington.mn.us TO: Mayor,Councilmembers and City Administrator FROM: Brenda Wendlandt,Human Resources Director SUBJECT: Appointment Recommendation-Police Department DATE: August 4, 2014 INTRODUCTION The recruitment and selection process for the appointment of a Police Sergeant,to fill a vacant position,has been completed. DISCUSSION After a thorough review of applicants by the Police Department and Human Resources Office, a contingent offer of employment has been made to Matt Hendrickson, subject to ratification by the City Council. Mr.Hendrickson has been employed with the City since May of 2005 and meets or exceeds the minimum qualifications for the position. BUDGET IMPACT Mr.Hendrickson's starting salary will be$79,236.21 which is step 1 of the salary range plus longevity for this position(Salary Range: $75,463.06- $87,121.82).Per the Sergeant's collective bargaining agreement, Mr.Hendrickson will move from accruing sick and vacation to accruing PTO(Paid Time Off)after the City and the Sergeant's come to an agreement regarding that transition for new sergeants. ACTION REQUESTED Approve the appointment of Mathew Hendrickson as Police Sergeant, effective August 5,2014. —. 0 Z /, O 4 t0 a a to N N N N N co tO t0 t0 fO N O O O O O O O O O O O O O O O ❑ O O o O O O O O O O O O O O O co r co o o O O O O o O O O O O o O lt) C O O co O n CO CO CO O O O M� O O ro U O O O O O 0 O O O 0 O O O O O O Nt O to W F CO co CO Z U U Z W n a Z 0 0 0 Z 'p O F. 7 7 z Q Q a QQ ¢ o Z 0 0 F j W W W W U U Q U U W to U 2 O W W < W W cc m W Z Z co U) U U) U) Q a 2 § re U j 0 7 0 W W W W W 07 7 F 7 7 Q U) o O 70 o R K K w O_' O m U) I I n. W J J J J LL U- U. U. 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Ir tom• CO t Y U a r N M a t0 co N U aa)) 0)) 0)) a) 0)) 0)) a) 0)) Y co Lo 4 O• Z m N F N N N aN- L U aF City of Farmington 430 Third Street Farmington,Minnesota 651.280.6800 -Fax 651.280.6899 44 ,41 paell06 www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Kevin Schorzman,P.E., City Engineer SUBJECT: Award Contract-Farmington/Lakeville Trail Crack Sealing Project DATE: August 4, 2014 INTRODUCTION The city council authorized advertisement for bids for the Farmington/Lakeville Trail Crack Sealing project at the April 21, 2014 council meeting. DISCUSSION Bids were opened on Friday,July 25,2014. Seven bids were received as shown on the bid summary below: Contractor Bid Farmington Cost Low Bid MJ Sealcoating,LLC(dba Seal King) $27,398.00 $7,714.00 #2 All Things Asphalt $28,119.00 $7,917.00 #3 Chem Seal $28,840.00 $8,120.00 #4 American Pavement Solutions $41,818.00 $11,774.00 #5 Allied Blacktop Company $70,658.00 $19,894.00 #6 Fahmer Asphalt $72,100.00 $20,300.00 #7 Astech $80,031.00 $22,533.00 Staff for both cities has reviewed the bids and based on the bids that were received, staff recommends awarding the contract to MJ Sealcoating,LLC for the bid price of 27,398.00. BUDGET IMPACT Costs for Farmington's share of this project will be paid out of the trail maintenance fund as anticipated in the 2014 budget. ACTION REQUESTED Adopt the attached resolution accepting the bid of MJ Sealcoating,LLC in the amount of$27,398.00 and awarding the project. ATTACHMENTS: Type Description D Resolution Trail Crack Sealing Resolution n Contract Trail Crack Sealing Contract RESOLUTION NO. R45-14 AWARD BID FOR THE FARMINGTON/LAKEVILLE TRAIL CRACK SEALING PROJECT 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 4th day of August, 2014 at 7:00 p.m. Members present: Larson, Bartholomay, Bonar, Donnelly, Fogarty Members absent: None Member Fogarty introduced and Member Donnelly seconded the following resolution: WHEREAS, pursuant to an advertisement for bids for the Farmington/Lakeville Trail Crack Sealing Project, bids were received, opened and tabulated according to law, and the following bids were received complying with the advertisement from firms determined to be responsible and competent for the Project: Contractor Bid Farmington Cost Low Bid MJ Sealcoating, LLC (dba Seal King) $27,398.00 $7,714.00 #2 All Things Asphalt $28,119.00 $7,917.00 #3 Chem Seal $28,840.00 $8,120.00 #4 American Pavement Solutions $41,818.00 $11,774.00 #5 Allied Blacktop Company $70,658.00 $19,894.00 11'6 Fahrner Asphalt $72,100.00 $20,300.00 #7 Astech $80,031.00 $22,533.00 ; and, WHEREAS,the firm of MJ Sealcoating, LLC, is the lowest responsible bidder for the project. NOW THEREFORE,BE IT RESOLVED that: 1. The bid of MJ Sealcoating, LLC, in the amount of$27,398.00, is hereby accepted and awarded and the Mayor and Administrator are hereby authorized and directed to enter into a contract therefore. This resolution adopted by recorded vote of the Farmington City Council in open session on the 4th day of August, 2014. Mayor Attested to the a f4 day of August, 2014. t 4/ qty Adrninist a SEAL FORM OF AGREEMENT BETWEEN CITY OF FARMINGTON AND MJ SEALCOATING, LLC FOR CONSTRUCTION CONTRACT THIS AGREEMENT made this 4th day of August,2014,by and between the CITY OF FARMINGTON,a Minnesota municipal corporation acting for the cities of Farmington and Lakeville under a joint powers agreement("Owner"or"City")and MJ Sealcoating,LLC,a Minnesota limited liability corporation("Contractor"). Owner and Contractor,in consideration of the mutual covenants set forth herein,agree as follows: 1. CONTRACT DOCUMENTS. The following documents shall be referred to as the"Contract Documents",all of which shall be taken together as a whole as the contract between the parties as if they were set verbatim and in full herein: A. This Agreement. B. Specifications and Requirements-Trail Maintenance C. MnDOT Standard Specifications for Construction D. Contractor's Quote. In the event of a conflict among the provisions of the Contract Documents,the order in which they are listed above shall control in resolving any such conflicts with Contract Document"A"having the first priority and Contract Document'D"having the last priority. 2. OBLIGATIONS OF THE CONTRACTOR. The Contractor shall provide the goods,services,and perform the work in accordance with the Contract Documents. 3. CONTRACT PRICE. Owner shall pay Contractor for completion of the Work, in accordance with the Contract$27,398.00inclusive of taxes,if any. 4. PAYMENT PROCEDURES. A. Contractor shall submit Application for Payment upon completion of the work. Application for Payment will be processed by the respective City. B. Payments to Subcontractors. (1) Prompt Payment to Subcontractors. Pursuant to Minn.Stat. §471.25,Subd.4a,the Contractor must pay any subcontractor within ten(10)days of the Contractor's receipt of payment from the City for undisputed services provided by the subcontractor. The Contractor must pay interest of 1 1/2 percent per month or any part of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest penalty payment for an unpaid balance of$100.00 or more is$10.00. For an unpaid balance of less than$100.00,the Contractor shall pay the actual penalty due to the subcontractor. (2) Form IC-134(attached)required from general contractor. Minn. Stat.§290.92 requires that the City of Farmington and the City of Lakeville obtain a Withholding Affidavit for Contractors,Form IC-134,before making final payments to Contractors. This form needs to be submitted by the Contractor to the Minnesota Department of Revenue for approval. The form is used to receive certification from the state that the vendor has complied with the requirement to withhold and remit state withholding taxes for employee salaries paid. C. The Contractor shall invoice each city separately for work done in the respective city. D. Final Payment. Due to the small scope and short duration of this project,only one payment will be made upon completion of the project by each city as recommended by the respective City. 5. COMPLETION DATE. The Work must be completed by September 30,2014 6. CONTRACTOR'S REPRESENTATIONS. A. Contractor has examined and carefully studied the Contract Documents and other related data identified in the Contract Documents. B. Contractor has visited the Site and become familiar with and is satisfied as to the general,local,and Site conditions that may affect cost,progress,and performance of the Work. C. Contractor is familiar with and is satisfied as to all federal,state,and local laws and regulations that may affect cost,progress,and performance of the Work. D. Contractor has carefully studied all: (1)reports of explorations and tests of subsurface conditions at or contiguous to the Site and all drawings of physical conditions in or relating to existing surface or subsurface structures at or contiguous to the Site(except Underground Facilities)which have been identified in the General Conditions and(2)reports and drawings of a Hazardous Environmental Condition,if any,at the Site. E. Contractor has obtained and carefully studied(or assumes responsibility for doing so)all additional or supplementary examinations,investigations,explorations,tests,studies,and data concerning conditions (surface,subsurface,and Underground Facilities)at or contiguous to the Site which may affect cost, progress,or performance of the Work or which relate to any aspect of the means,methods,techniques, sequences,and procedures of construction to be employed by Contractor,including any specific means, methods,techniques,sequences,and procedures of construction expressly required by the Bidding Documents,and safety precautions and programs incident thereto. F. Contractor does not consider that any further examinations,investigations,explorations,tests,studies, or data are necessary for the performance of the Work at the Contract Price,within the Contract Times, and in accordance with the other terms and conditions of the Contract Documents. G. Contractor is aware of the general nature of work to be performed by Owner and others at the Site that relates to the Work as indicated in the Contract Documents. H. Contractor has correlated the information known to Contractor,information and observations obtained from visits to the Site,reports and drawings identified in the Contract Documents,and all additional examinations,investigations,explorations,tests,studies,and data with the Contract Documents. I. The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work. J. Subcontracts: (1) Unless otherwise specified in the Contract Documents,the Contractor shall,upon receipt of the executed Contract Documents,submit in writing to the Owner the names of the Subcontractors proposed for the work. Subcontractors may not be changed except at the request or with the consent of the Owner. (2) The Contractor is responsible to the Owner for the acts and omissions of the Contractor's • subcontractors,and of their direct and indirect employees,to the same extent as the Contractor is responsible for the acts and omissions of the Contractor's employees. (3) The Contract Documents shall not be construed as creating any contractual relation between the Owner and any subcontractor. (4) The Contractor shall bind every subcontractor by the terms of the Contract Documents. 7. WORKER'S COMPENSATION. The Contractor shall obtain and maintain for the duration of this Contract, statutory Worker's Compensation Insurance and Employer's Liability Insurance as required under the laws of the State of Minnesota. 8. COMPREHENSIVE GENERAL LIABILITY. Contractor shall obtain the following minimum insurance coverage and maintain it at all times throughout the life of the Contract,with the City included as an additional name insured on the general liability insurance on a primary and noncontributory basis. The Contractor shall furnish the City a certificate of insurance satisfactory to the City evidencing the required coverage: Bodily Injury: $2,000,000 each occurrence $2,000,000 aggregate products and completed operations Property Damage: $2,000,000 each occurrence $2,000,000 aggregate Contractual Liability(identifying the contract): Bodily Injury: $2,000,000 each occurrence Property Damage: $2,000,000 each occurrence $2,000,000 aggregate Comprehensive Automobile Liability(owned,non-owned,hired): Bodily Injury: $2,000,000 each occurrence $2,000,000 each accident Property Damage: $2,000,000 each occurrence 9. WARRANTY. The Contractor guarantees that all new equipment warranties as specified within the quote shall be in full force and transferred to the City upon payment by the City. The Contractor shall be held responsible for any and all defects in workmanship,materials,and equipment which may develop in any part of the contracted service,and upon proper notification by the City shall immediately replace,without cost to the City,any such faulty part or parts and damage done by reason of the same in accordance with the bid specifications. 10. INDEMNITY. The Contractor agrees to indemnify and hold the City harmless from any claim made by third parties as a result of the services performed by it. In addition,the Contractor shall reimburse the City for any cost of reasonable attorney's fees it may incur as a result of any such claims. 11. PERFORMANCE AND PAYMENT BONDS. Performance and payment bonds are not required for the doing of any public work if the contract price is.$75,000 or less.On projects of more than$75,000 for the doing of public work a payment bond and performance bond each in the amount of the contract price must be furnished to the City prior to commencement of work. The form of the bonds must satisfy statutory requirements for such bonds. 12. MISCELLANEOUS. A. Terms used in this Agreement have the meanings stated in the General Conditions. B. Owner and Contractor each binds itself,its partners,successors,assigns and legal representatives to the other party hereto,its partners,successors,assigns and legal representatives in respect to all covenants, agreements,and obligations contained in the Contract Documents. C. Any provision or part of the Contract Documents held to be void or unenforceable under any law or regulation shall be deemed stricken,and all remaining provisions shall continue to be valid and binding upon Owner and Contractor,who agree that the Contract Documents shall be reformed to replace such stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provisions. D. Data Practices/Records. (1) All data created,collected,received,maintained or disseminated for any purpose in the course of this Contract is governed by the Minnesota Government Data Practices Act,Minn.Stat.Ch. 13,any other applicable state statute,or any state rules adopted to implement the act,as well as federal regulations on data privacy. (2) All books,records,documents and accounting procedures and practices to the Contractor and its subcontractors,if any,relative to this Contract are subject to examination by the City. E. Software License. If the equipment provided by the Contractor pursuant to this Contract contains software,including that which the manufacturer may have embedded into the hardware as an integral part of the equipment,the Contractor shall pay all software licensing fees. The Contractor shall also pay for all software updating fees for a period of one year following cutover. The Contractor shall have no obligation to pay for such fees thereafter. Nothing in the software license or licensing agreement shall obligate the City to pay any additional fees as a condition for continuing to use the software. • • , F. Patented devices,materials and processes. If the Contract requires,or the Contractor desires,the use of any design,device,material or process covered by letters,patent or copyright,trademark or trade name, the Contractor shall provide for such use by suitable legal agreement with the patentee or owner and a copy of said agreement shall be filed with the Owner. If no such agreement is made or filed as noted, the Contractor shall indemnify and hold harmless the Owner from any and all claims for infringement by reason of the use of any such patented designed,device,material or process,or any trademark or trade name or copyright in connection with the Project agreed to be performed under the Contract,and shall indemnify and defend the Owner for any costs,liability,expenses and attorney's fees that result from any such infringement. G. Assignment. Neither party may assign,sublet,or transfer any interest or obligation in this Contract without the prior written consent of the other party,and then only upon such terms and conditions as both parties may agree to and set forth in writing. H. Waiver. In the particular event that either party shall at any time or times waive any breach of this Contract by the other,such waiver shall not constitute a waiver of any other or any succeeding breach of this Contract by either party,whether of the same or any other covenant,condition or obligation. I. Governing Law/Venue. The laws of the State of Minnesota govern the interpretation of this Contract. In the event of litigation,the exclusive venue shall be in the District Court of the State of Minnesota for Ixsi. County. J. Severability. If any provision,term or condition of this Contract is found to be or become unenforceable or invalid,it shall not effect the remaining provisions,terms and conditions of this Contract,unless such invalid or unenforceable provision,term or condition renders this Contract impossible to perform. Such remaining terms and conditions of the Contract shall continue in full force and effect and shall continue to operate as the parties'entire contract. K. Entire Agreement. This Contract represents the entire agreement of the parties and is a final,complete and all inclusive statement of the terms thereof,and supersedes and terminates any prior agreement(s), understandings or written or verbal representations made between the parties with respect thereto. L. Permits and Licenses;Rights-of-Way and Easements. The Contractor shall give all notices necessary and incidental to the construction and completion of the Project. The City will obtain all necessary rights-of-way and easements. The Contractor shall not be entitled to any additional compensation for any construction delay resulting from the City's not timely obtaining rights-of-way or easements. M. If the work is delayed or the sequencing of work is altered because of the action or inaction of the Owner,the Contractor shall be allowed a time extension to complete the work but shall not be entitled to any other compensation. OWNER: CONTRACTOR: CITY OF FARMINGTON SP n3 L.Le b A '3w �Ca BY % v BY: ael C gy 'Cd T d Larson,Mayor Its: WtSsiCkeJA— AND David McKnight,C Ac�ir> iistrator ie.76 44ARii ,_ City of Farmington 430 Third Street Farmington,Minnesota 651.280.6800 -Fax 651.280.6899 ,4 „p.�° www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Robin Hanson SUBJECT: June 2014 Financial Review DATE: August 4, 2014 INTRODUCTION Attached are the June 30,2014 financial statements for your review at your August 4,2014 meeting. DISCUSSION See attached. BUDGET IMPACT N/A ACTION REQUESTED Review the financial reports and ask staff any questions that may arise for your review. ATTACHMENTS: Type Description © Cover Memo June 2014 Financial Review o Backup Material General Fund Actual Versus Budgeted June 30, 2014 o Backup Material General Fund Fund Balance Chart June 30,2014 O Backup Material RRC,Pool, EDA,Park Imp&Arena Actual Versus Budgeted June 30, 2014 D Backup Material Liquor Stores Actual Versus Budgeted June 30, 2014 n Backup Material Utilities Actual Versus Budgeted June 30,2014 °`i i4, City of Farmington 411kit 430 Third Street g Farmington,Minnesota d 0 651.280.6800•Fax 651.280.6899 •A moo`a www.cilarmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Robin Hanson,Finance Director SUBJECT: Financial Review—June 2014 Financial Statements DATE: August 4,2014 INTRODUCTION: Attached you will find draft financial results for the first six months of 2014.Comments have been included below which explain line items that may be ahead or behind pro-rata budget amounts or have other activity to highlight. DISCUSSION: Through the end of June you would generally expect revenues and expenses to be approximately 50%of the 2014 budgeted amounts. General Fund Overview The table below summarizes actual General Fund revenues(51%) in relation to budgeted amounts for the first six months of 2014 by line item. Actual as a%of Actual Budget Budget Property Taxes $ 4,270,283 $ 8,035,055 53% Licenses 39,370 42,005 94% Permits 264,610 375,868 70% Intergovernmental 120,451 683,891 18% Charge for Service 222,255 483,100 46% Fines 26,372 70,800 37% Investment Income 36,865 55,000 67% Miscellaneous 33,592 37,500 90% Franchise Fees 60,472 100,000 60% $ 5,074,270 $ 9,883,219 51% General Fund Revenues Property Taxes—The first half property taxes have been recorded. The property tax line item also includes collection of$144K in delinquent taxes and$60K for the fire truck debt levy. Excluding these amounts,property tax revenues represent 50.6%of annual budgeted amounts. Licenses—Actual revenues are ahead of last year's pro-rata amounts by approximately$8K. Of this amount, $6K relates to bi-annual animal license renewals. Permits—While permit revenue is 70%of budget, it is $48K less than the amount recorded for the same period last year. The number of permits issued is the same for both periods(52). The primary difference is in 2013 revenues included $32K in building permit revenue related to the Farmington Elementary School remodeling project. Intergovernmental—Amounts received are ahead of last year's pace due to the receipt of higher than budgeted MSA dollars. The LGA and Police Aid will be received in the second half of the year. Fines—Fine revenues are lagging budgeted amounts. The 2014 amounts received to-date are the lowest collected for this time period in the past seven years. Other cities seem to be experiencing similar lags as staff noted in a recent Minnesota Chiefs of Police update where MCPA President Ramsay shared their state court citation revenue indicates the average revenue amount Duluth receives per citation is inconsistent and will likely be less this year than the city was receiving in the 1990's. The Duluth per citation average revenue was$51 in the early 2000's and was down to $43 last year. Investment Income—Surprisingly, investment income revenue is ahead of last year at this time. Interest rates are lower and the city's higher rate investments have matured or been called. This is being offset by an overall increase in the amount of funds(48%higher)the city has invested longer-term. Miscellaneous—Rental income comprises the majority of the miscellaneous revenues in 2014 and is already at 90%of the amount budgeted for the year. It should also be noted the 2013 amounts included a$11.6K distribution from ALF. General Fund Expenditures The chart below details actual expenditures as a percent of budget through June 30, 2014. 2014 General Fund Expenditures Through June 30, 2014 80% 70% 60% Black line represents 50%of anticipated expenditures through June 30, 50% a0% 30% zo% ■ iiiiiiuiiiiii N . 1111 10% 0% . , ea\ °¢ �°¢ .00o ey e�c ep,`\\a Q i e'et e c`e F � ca° ,`c0> c pQ�J�\ e¢,'='e`°4` e`Pce teas��° � F� Q ° Ktx \�& a � ed c e` e°J � ,Ge c4,0° ,00. r� e `S5• a F°°O � �ce `Qe a 0 am ce � � �Q <a \ � � aQ ��c 4 \� c \` ° �e F� °\ Q e Overall, General Fund expenditures for the first six months totaled$4.6 million or 44%of budget,which is less than 50%of pro-rata budgeted amounts you would expect. Legislative—These expenditures are in line with amounts expended for the same time period in 2013. Historical Preservation—Appears high due to the timing of the retention payments.This will even out during the year. Elections—The majority of these expenditures will be incurred during the second half of the year. Fire—The year-to-date expenditures are higher than last year at this time due to a$15K increase in workers compensation premium charges and a combined$8K in increased charges for Dakota Preparedness and radio subscriber fees. These increases have been offset by an$8.3K reduction in vehicle repair services. The larger expenditures in this budget—pension contribution and new vehicles—will occur in the second half of the year. Planning—The 2014 year-to-date expenditures are less than 2013 because there was one less full-time-employee for the majority of this time in 2014,than for the same time period in 2013. Snow Removal—Seasonal. The 2014 amounts are actually$9K less than for the same time period in 2013. Recreation Programs—Seasonal.Expenditures are in line with 2013. General Fund Transfers Transfers Out—The May transfers and as a result the June year-to-date transfers are higher than budgeted,because in May 5/12ths of the 2014 Fire CIP funding was transferred from the General Fund to the Fire Capital Projects Fund. When the amounts were originally budgeted the dollars were envisioned to be spent directly from the General Fund,but since there is a projected carryover fund balance the monies were moved to the Fire Capital Project Fund where this can be more easily identified and tracked. General Fund,Fund Balance For the first six months of 2014 the fund balance in the General Fund increased $700K to approximately$3.8 million,just reaching the State Auditor's minimum funding guideline of 35% of current expenditures. As you can see on the historical Fund Balance chart included in your packet,this is the first time this has been achieved in the past seven years.Diligence by the council and staff to improving the overall fmancial health of the city is beginning to pay dividends. While this is just the minimum, it is still a significant accomplishment. All are to be congratulated. Continued commitment to staying the course to further improving the General Fund fund balance, addressing the underfunding in the debt service reserve funds and maintaining the fmancial health of the remaining funds will serve the city well. RRC,POOL,EDA,Park Improvement and the Arena Rambling River Center(Included in General Fund)—Overall,the Rambling River Center revenues are$4K ahead of last year's amounts. They represent the same overall percentage of the budget,approximately 87%. The 2014 RRC expenditures are in line with 2013 amounts,though they have incurred higher than budgeted amounts for natural gas costs(already at 75%of budget). Pool(Included in the General Fund)—Overall, for the first part of the season, pool revenues are $4.5K less than last year. The decrease is primarily in the pool admissions line item. The 2014 expenditures are higher than 2013, because the June 2014 utility invoices were recorded in June this year.Last year they were not recorded until July. There have also been increased repair costs this summer. EDA—Special Revenue Fund—Revenues are higher than expected. During May the EDA received a federal grant reimbursement for the Longbranch and received$13K in excess TIT increment funds in June. Expenditures are higher than expected due to the Longbranch disbursement made this past April. Park Improvement—Special Revenue Fund—The second quarter includes receipt of special assessments owed for the Sunrise Ponds development and the first half special assessments related to the Park Improvement Fund. The second quarter expenditures reflect the purchase of the playground equipment for Fair Hills Park. Ice Arena—Special Revenue Fund —The Ice Arena revenues are$10K ahead of last year with all revenue line items up slightly from the year before. The 2014 expenditures are ahead of their 2014 pace due to the investment in new skates for customers to rent($3K), increased human resource costs($3K,being properly allocated in 2014), and increased natural gas bills($3K). Enterprise Funds Liquor Operations Goal Liquor Store Goals Met Gross Profit Benchmark—25%or higher Downtown store ✓ Pilot Knob store ✓ Combined Profit(before transfers)as a%of Sales—6.5%or higher ✓ Cash Balance->$350,000 ✓ Storm Water Fund—Expenses are approximately$20K higher than 2013 for the same time period due to increased professional services by Stantec and Prairie Restoration(controlled burns). Water—Revenues consist of not only water bills(i.e.enterprise sales),but also water availability charges,net interest income,rental income, and other income. Overall,revenues in the Water Fund are approximately$20K ahead of 2013. With the exception of rental income,each of the revenue line items listed are ahead of 2013 for this same time period. In 2013 rental income was high due to the termination of a cell tower lease($30K). The 2014 enterprise sales(i.e.water bills)are higher due to the increase in the number of gallons pumped,270 million gallons in 2014 as compared to 253 million gallons in 2013. The Water Fund expenses are approximately$20K ahead of 2013. There are several line items that are slightly ahead and slightly behind of the 2013 amounts for this same time period. Items of note include additional costs to thaw pipes this past winter(due to the deep freeze)and$21K in higher electric bills. The latter is not necessarily due to higher charges, but an emphasis on trying to code the invoices to the appropriate month. ACTION REQUESTED: Review the financial reports and ask staff any questions that may arise from your review. Respectfully submitted, Robin Hanson Finance Director General Fund June 2014 YTD Operating Report June YTD June Quarter 1 Quarter 2 June YTD June YTD Actual YAc YTD Company Actual Actual Actual Budget Budget Act%2014 2014 2014 2014 Variance B of f 2014 Bud 2014 'Revenues Property Taxes 0 4,270,283 4,270,283 8,035,055 (3,764,772)1 53% Licenses 31,115 8,255 39,370 42,005 (2,635) 94% Permits 108,683 155,927 264,610 375,868 (111,258) 70% Intergovernmental Revenue 109,900 10,551 120,451 683,891 (563,440) 18% Charge for Service 87,213 135,041 222,255 483,100 (260,845) 46% Fines 10,560 15,812 26,372 70,800 (44,428) 37% Investment Interest 15,544 21,321 36,865 _ 55,0001 (18,135), 67% Miscellaneous 13,465 20,127 33,592 37,500 (3,908) 90% Franchise Fees 0 60,472 60,472 100,000 (39,528)! 60% Subtotal Revenues 376,481 4,697,789 5,074,270 9,883,219 (4,808,949)' 51% Expenditures Legislative 13,713 11,968 25,681 73,574 (47,893) 35% Historical Preservation 1,775 3,588 5,363 7,500 (2,137)! 72% Administration 88,956 88,454 177,410 457,204! (279,794) 39% Elections 2,358 149 2,507 32,8371 (30,330) 8% Communications 20,344 19,055 39,399 85,923 (46,524), 46% City Hall 54,067 35,105 89,172 201,534 (112,362); 44% Finance 137,623 137,743 275,366 562,154 (286,788) 49% Community Development 0 0 0 0 0 Human Resource 61,528 58,229 119,757 251,726 (131,969) 48% 1 Police Administration 179,196 164,525 343,720 779,548 (435,828) 44% Patrol Services 625,912 653,371 1,279,283 2,520,076 (1,240,793); 51% Investigations 163,388 156,129 319,517 766,865 (447,348)1 42% Emergency Management 53 2,542 2,595 6,150 (3,555)1 42% Fire 132,736 122,746 255,482 1,066,542 (811,060) 24% Rescue 11,304 13,748 25,052 54,724 (29,672)1 46% Engineering 133,725 127,187 260,912 539,884 (278,972) 48% Planning 45,456 33,133 78,589 252,209 (173,620)' 31% Building Inspection 59,555 54,023 113,578 258,320 (144,742) 44% Natural Resources 22,740 20,523 43,263 105,360 (62,097)! 41% Streets 231,308 234,923 466,230 1,042,795 (576,565) 45% Snow Removal 117,447 21,894 139,341 192,112 (52,771) 73% Park Maintenance 119,872 132,745 252,616 559,036 (306,420) 45% Rambling River Center 43,882 30,968 74,850 153,287 (78,437)1 49% Park&Rec Admin 47,307 58,939 106,246 257,873 (151,627) 41% Recreation Programs 7,205 25,506 32,711 112,851 (80,140)' 29% Swimming Pool 2,151 54,583 56,734 139,168 (82,434); 41% Subtotal Expenditures 2,323,601 2,261,775 4,585,376 10,479,252 (5,893,877)! 44% Revenues(Over)Under Expenditures (1,947,120) 2,436,014 488,894 (596,033) 1,084,927 -82% Other Financing Transfers In 271,653 271,653 543,306 1,086,612 (543,306), 50% Transfers Out (122,645) (205,145) (327,789) (490,579) 162,790; 67% Subtotal Other Financing 149,008 66,508 215,517 596,033 (380,516)1 36% 1 Net Change in Fund Balance (1,798,112) 2,502,522 704,411 0 704,411 7/28/2014 9:53:01 AM Page 1 of 1 I 0 0 I I I CD N ■ 0 N o • Q 01 T vi v N EC, CS ■ . 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M O) N N- •t O a a0 to C m a N M N CO v M co ~ N e} N CO CO N N O N CO r M (� TS ' 7 _ a 0 co m m at M co ^ N 3 m at L d N 3 m en 0) Co m .0 3 € a) .� D.3 CO °- CO E in m 3 co m (n u -- 0 CD N tmi m N >) o C y w C y C co C y C at to m R m ` m L. m CD m N m CU N m y l0 .m. .m•. y N am-. y la .0 D- m m y y m 3 01 CO @ Cy m O m y m - m t m E a m v m CO Q °_ 0 3 a 0 Y E 0 n. 2 v t a O X 3 C 3 X C x C ._ o y C to x at C - x U m m W CO lL :O W N lL E W LL O a C m m > 7 m W 3 LL m W o a) m C O p m C .0. at C m m E In m C m C m > m - > j - N > 3 N o m > O > N N O O m N N O O m y 0 0 m j m H m N 0 m N O cm y to y y q y y y y �' y y y y y Q m - �- m re m y y m 0 y y CD m m L. C m m m t_ C r m m m ocri m '•' 0 t y m f_ C „ m m m 7 y 7 at m to. 7 C 7 m m m 7 C 7 m m 7 m C .m, la a = 412 :2 = 7 y 7 C C C C t m C C C '� t 3 C C C w t C +• ... C 2 0 at C N 0 C C C ` m m m c U 3 m m m EL) m m m U m m m m C — 0 a m C U m m m m > a > m > a > m > x > m « > 3 z a w a I- x > m « > a > m x m - m •0 m x m cl m € m x m - m m at u� at �• m •m m X at 3 w z o! w re it z 0 w w r4 h- z A a! a H z E w w 4: w co o v) in 2 Q ti v C") N 0 O N 03 N ti /G1'62„ ‘FARii City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 S. ° www.ci.farmington.mn.us TO: Mayor,Councilmembers and City Administrator FROM: David J.McKnight,City Administrator SUBJECT: Consider Possible Settlement of Pending Litigation(Supplemental and to be Discussed after Executive Session) DATE: August 4, 2014 INTRODUCTION The city council may consider a possible settlement agreement on pending litigation in a closed session as allowed under Minnesota Statute 13D. Any formal action on a settlement agreement will take place in the public portion of the meeting. DISCUSSION This issue may be discussed after the closed session. BUDGET IMPACT NA ACTION REQUESTED The city council may consider action on a potential settlement agreement on a pending litigation matter. oE� City of Farmington 430 Third Street Farmington,Minnesota vitb 651.280.6800 -Fax 651.280.6899 '14/'•it ,.° www.ci.farmington.mn.us TO: Mayor,Councilmembers and City Administrator FROM: David J. McKnight,City Administrator SUBJECT: Closed Session Under Attorney/Client Privilege to Consider a Potential Settlement Agreement in Pending Litigation DATE: August 4, 2014