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Home My WebLink About03.21.16 Council Packet Meeting Location: Farmington Farmington City Hall Minnesota 430 Third Street Farmington,MN 55024 CITY COUNCIL REGULAR MEETING AGENDA MARCH 21, 2016 7:00 P.M. Action Taken 1. CALL TO ORDER 7:00 P.M. 2. PLEDGE OFALLEGL4NCE 3. ROLL CALL 4. APPROVE AGENDA 5. ANNOUNCEMENTS/COMMENDATIONS a) Proclaim April 3, 2016 as Maricia Pacheco Day in Farmington Proclaimed 6. CITIZEN COMMENTS/RESPONSES TO COMMENTS(This time is reserved for citizen comments regarding non-agenda items.No official Council action can be taken on these items. Speakers are limited to five minutes to address the Council during"Citizen Comment"time.) 7. CONSENT AGENDA a) Approve Council Minutes (3/7/2016 Regular)(3/14/2016 Workshop)— Administration Approved b) Approve Joint Powers Agreement to Complete a Systems Plan for Broadband Services—Administration Approved c) Approve Temporary On-Sale Liquor License Masonic Lodge— Administration Approved d) Approve Farmington Fire Relief Association 2017 Pension Contribution— Administration Approved e) Approve Out-of-State Travel to Attend Fire Department Instructors Conference-Fire Approved f) Adopt Resolution Declaring Surplus Property—Fire R24-16 g) Approve City Participation in City of Apple Valley Auction—Human Resources Approved h) Approve Bills Approved REGULAR AGENDA 8. PUBLIC HEARINGS a) Adopt Resolution—Certification of Delinquent Municipal Services to 2017 Tax Rolls-Finance R25-16 9. AWARD OF CONTRACT 10. PETITIONS,REQUESTS AND COMMUNICATIONS a) Parks and Recreation Department's 2015 Annual Report Information Received 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) Approve Revised Cable Franchise Policy—Human Resources Approved b) Financial Review—Draft 2015 Financials-Finance Information Received 13. COUNCIL ROUNDTABLE 14. ADJOURN a�Fmutt, City of Farmington 7 , 430 Third Street Farmington,Minnesota alt 651.280.6800 -Fax 651.280.6899 °4.4 * www cifarmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Todd Larson, Mayor SUBJECT: Proclaim April 3,2016 as Maricia Pacheco Day in Farmington DATE: March 21,2016 INTRODUCTION Farmington resident Maricia Pacheco is currently serving as the Minneapolis Aquatennial Queen of the Lakes for 2016. Maricia is the first Farmington resident to serve as the Queen of Lakes. DISCUSSION Maricia was selected as the 2016 Minneapolis Aquatennial Queen of Lakes last summer from a group of 49 candidates. Ms. Pacheco went through a rigorous judging process and has since represented the Aquatennial in many communities throughout Minnesota. Maricia has worked on community service projects and festival events around the state as well as assisting in the leadership development of young women. Maricia was crowned Miss Farmington in 2014 and served a year in that capacity representing Farmington at events in our city and around the region. BUDGET IMPACT NA ACTION REQUESTED Join the mayor as he proclaims Sunday,April 3, 2015 as Maricia Pacheco in Farmington. ,ATTACHMENTS: Type Description 13 Backup Material Mayoral Proclamation 5t of oratrninston cJIa#otal etociamation Cheteas, diatkia Pacheco has setved as the 2016 elinneaioolis Auatennial Queen of the Ake* and CWheteas, //'laticia Pacheco setved as 2014 C`liss (fatmin8ton and is(fatininnton s first c/iinnea/nolis at Quatennial teptesentative; and MWheteas, ctaticia Pacheco has teptesented the eitc, of cfatmin�f ton and the c/linneapolis 042uatennial with dignity, class and the utmost,to fessionalism; and CLlrheteas, /laticia ?acheco has shown hetself to be a tole model fot'outh actors the state and in(fatminnc ton. 2, d'odd cfatson, divot o f cfatmington, due heteb# ,otoelaim Sunda#, oqptil 3, 2016 CO d'l aticia Pacheco Jai in the eitg o f(fatmin8ton. behalf of the citizens of fatminnc ton we thank#ou fat gout service to out community and thank r#. ou fot gout dedication to the man# causes gou have promoted. , IcF AR4)jy� �J poGap'��(��O qsT.q PkOM�S`� Joddotatson, d`laaot FART, City of Farmington §. a< 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 '4.4 ° www cifarmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Cynthia Muller, Executive Assistant SUBJECT: Approve City Council Minutes (3/7/2016 Regular)(3/14/2016 Work Session- Administration) DATE: March 21, 2016 INTRODUCTION Attached are the city council minutes for March 7 and 14, 2016. DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED Approve the city council minutes for March 7 and 14, 2016. ATTACHMENTS: Type Description © Exhibit Council Minutes (3/7/16 Regular) a Exhibit Council Minutes (3/14/16 Workshop) COUNCIL MINUTES REGULAR March 7, 2016 1. CALL TO ORDER The meeting was called to order by Mayor Larson at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE Mayor Larson led the audience and Council in the Pledge of Allegiance. 3. ROLL CALL Members Present: Larson,Bartholomay, Bonar,Donnelly,Pitcher Members Absent: None Also Present: Joel Jamnik, City Attorney;David McKnight, City Administrator; Robin Hanson, Finance Director; Brian Lindquist,Police Chief; Jim Larsen,Fire Chief; Adam Kienberger,Community Development Director;Brenda Wendlandt, Human Resources Director; Cynthia Muller,Executive Assistant Audience: Joy Lauterbach 4. APPROVE AGENDA Councilmember Bonar pulled items 7g)Adopt Resolution in Support of Met Council Governance Reform, for comment, and items 7s)and t)Position Reclassifications Police Department for separate vote. MOTION by Bartholomay, second by Pitcher to approve the Agenda. APIF,MOTION CARRIED. 5. ANNOUNCEMENTS a) Joy Lauterbach—Trinity Campus Events Ms.Joy Lauterbach informed Council of some upcoming events at Trinity. On March 19,2016,they will host an indoor Easter egg hunt which is open to the public. On March 29, 2016,there will be tours of Trinity Suites(memory care) with a grab and go spaghetti supper. She noted Farmington is a unique community. The volunteers at Trinity are second to none and all ages volunteer. She thanked Farmington and the surrounding area for their support. April 23, 2016,will be their annual volunteer social with entertainment and food. Employment opportunities in all areas are available on their website. 6. CITIZEN COMMENTS 7. CONSENT AGENDA MOTION by Bartholomay, second by Donnelly to approve the Consent Agenda as follows: a) Approved Council Minutes (2/1/2016 Regular)(2/8/2016 and 2/22/2016 Workshop)-Administration b) Adopted RESOLUTION R11-16 Approving Gambling Event Permit for the Vermillion River Longbeards-Administration Council Minutes(Regular) March 7,2016 Page 2 c) Adopted RESOLUTION R12-16 Approving Gambling Premise Permit for Farmington Youth Hockey Association-Administration d) Adopted RESOLUTION R13-16 Approving Gambling Event Permit St. Michael's Church-Administration e) Approved Temporary On-Sale Liquor License St.Michael's Church- Administration f) Approved Amendment Number Three to Shopping Center Lease Agreement for Pilot Knob Liquor Store-Administration g) Adopted RESOLUTION R14-16 in Support of Met Council Governance Reform —City Council h) Adopted RESOLUTION R15-16 Approving New Court Data Access System— City Attorney i) Approved Clean Water Minnesota Metro WaterShed Partners Membership- Engineering j) Adopted RESOLUTION R16-16 Accepting Monetary Donation from Farmington Firefighters Relief Association-Fire k) Adopted RESOLUTION R17-16 Declaring Surplus Property-Fire 1) Adopted RESOLUTION R18-16 Approving Participation in All Hazard Mitigation Planning Process-Police m) Adopted RESOLUTION R19-16 Accepting Donation to Farmington Police Department-Police n) Adopted RESOLUTION R20-16 Accepting Donations to the Rambling River Center-Parks o) Adopted RESOLUTION R21-16 Accepting Donation to the Rambling River Center-Parks p) Declared Ice Resurfacer as Surplus Equipment and Authorized Sale-Parks q) Approved Contract for Electrical Inspection Services—Community Development r) Adopted ORDINANCE 016-713 Amending Fee Schedule—Community Development u) Approved Seasonal Hiring—Human Resources v) Approved Bills-Finance APIF,MOTION CARRIED. g) Adopt Resolution in Support of Met Council Governance Reform—City Council Councilmember Bonar noted this resolution was approved on the Consent Agenda. Many governmental agencies are approving this resolution. s& t) Position Reclassification Police Department—Human Resources Councilmember Bonar encouraged the Council to table these two items for additional deliberation before they move forward. Staff will provide more information and bring them back to a workshop. MOTION by Bonar, second by Bartholomay to table this item to a later date. APIF,MOTION CARRIED. 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS,REQUESTS AND COMMUNICATIONS Council Minutes(Regular) March 7,2016 Page 3 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) Adopt Resolution—Accept Donation to Farmington Fire Department from Northern Safety Technology,Inc.-Fire Fire Chief Larson recognized Mr.Mike Dow, a former firefighter, and owner of Northern Safety Technology, Inc. The company donated$1,000 towards the purchase of LED flashlights. MOTION by Bartholomay, second by Pitcher to adopt RESOLUTION R22-16 accepting a$1,000 donation for the purchase of LED flashlights for the Farmington Fire Department. APIF,MOTION CARRIED. b) Adopt Resolution—Accept Donation to Farmington Fire Department from RACE 2.0-Fire Mrs.Heidi Schmitz has organized a community walk/run for the Fire Department over the past two years,known as RACE 2.0. They have donated$1,500 towards the purchase of LED flashlights. MOTION by Donnelly, second by Bonar to adopt RESOLUTION R23-16 accepting the donation of$1,500 from RACE 2.0. APIF,MOTION CARRIED. c) Approve Fire Department Capital Improvement Plan Adjustment—Fire Fire Chief Larson proposed to amend the fire CIP by refurbishing a brush truck and use it as a utility vehicle to haul equipment and as a towing vehicle for the inflatable boat used for water resources. The cost of$5,000 for refurbishing will be paid out of the Relief Association capital fund. The cost to upgrade the graphics is$2,000 and is available in the fire operating budget. MOTION by Bartholomay, second by Bonar to approve the amendment to the Farmington Fire Department Capital Improvement Plan. APIF,MOTION CARRIED. d) Authorize Interfund Transfer Road and Bridge Fund to 2010C Debt Fund- Finance The 2010C bond fund's cash is below the 105%funding level set by state statute. Staff recommended transferring$120,000, effective December 31, 2015, from the road and bridge fund to the 2010C debt fund. MOTION by Donnelly, second by Bartholomay to authorize staff to transfer$120,000 effective December 31, 2015, from the road and bridge fund to the 2010C bond fund to achieve the 105% funding requirement. APIF,MOTION CARRIED. e) Approve 2015 Interfund Transfers-Finance Finance Director Hanson reviewed the various fund transfers made in 2015. MOTION by Pitcher, second by Bonar to approve the updated list of 2015 interfund transfers. APIF,MOTION CARRIED. 1) Investments Review-Finance As of December 31,2015,the combined cash and investments balance was $32 million. The average month end checking account balance was $4.2 million. The average month-end balance for investments was$23.7 million. The majority of investments are in certificates of deposit. Investment maturities are staggered Council Minutes(Regular) March 7,2016 Page 4 over nine years. The majority will mature in one to two years. Investments are purchased from four different brokers. The amount recorded for mark-to-market for 2015 was a reduction in the unrealized loss of$55,441,resulting in a net unrealized loss of$32,426 still remaining on the books. MOTION by Bartholomay, second by Donnelly to receive the annual investment report. APIF, MOTION CARRIED. 13. COUNCIL ROUNDTABLE Councilmember Donnelly: Congratulated the hockey team on making the state tournament. Councilmember Bartholomay: Congratulated the hockey team and thanked the fire chief and fire officers for the tour of the equipment and office changes. Councilmember Pitcher: Congratulated the hockey and wrestling teams. Thanked the Mayor for delivering the State of the City Address today. City Administrator McKnight: A number of donations were approved tonight for which we are very thankful. He thanked the Farmington Rotary for their donations to the police department and the Rambling River Center. Finance Director Hanson: Farmington also had some individuals representing the city at state for gymnastics and swimming and the robotics team qualified for nationals. Community Development Director Kienberger: The State of the City Address is available on the city's website. Mayor Larson: Asked residents to shop local. 14. ADJOURN MOTION by Donnelly, second by Pitcher to adjourn at 7:34 p.m. APIF,MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant City Council Workshop March 14,2016 Acting Mayor Donnelly called the meeting to order at 6:30 p.m. Present: Donnelly,Bartholomay, Bonar,Pitcher Absent: Larson Also Present: David McKnight, City Administrator; Robin Hanson, Finance Director;Adam Kienberger, Community Development Director; Kevin Schorzman, City Engineer;Jim Larson, Fire Chief; Fire Department Members Jeff Allbee,Mark Arens, Doug Rowe; Cynthia Muller, Executive Assistant MOTION by Bartholomay, second by Bonar to approve the agenda. APIF,MOTION CARRIED. Metro Cities Presentation Patricia Nauman,Metro Cities Executive Director,would like Farmington to join Metro Cities. Metro Cities has 91 members throughout the metro. Farmington was a member until 2009 due to budget cuts. This organization develops 70 legislative policies each year and advocates for cities at the legislature and Met Council. They are different from the League of Minnesota Cities in that they take a metro-centric approach and protect metro cities. LMC is a statewide approach. Metro Cities has appointing authority to various legislative committees. Metro Cities does not lobby on individual city bills, but can help with the process. They are an extension of city staff. The city benefits whether we are a member or not as they lobby on behalf of the entire metro. Membership makes the relationship with local legislators more beneficial. Without membership you miss having input into legislative policies. Regarding Met Council appointments,Ms. Nauman explained the Governor appoints a nominating committee. Metro Cities is asked for recommendations from cities to serve on that committee. They strive for diversity in cities within the metro and the outskirts. It is a requirement to have three city officials on the nominating committee. The Board of Directors has authorized a 50%membership discount for the first year, so the first year fee would be$3,800. Council will discuss this further with the 2017 budget process. Farmington Fire Relief Association Pension Request Mr.Jeff Allbee,Fire Relief Association President, stated the city has been asked to contribute $150,000 to their pension for the last three years. The Relief Association is now in a good position. They are asking for a pension increase for 2017 from $4,575 to$5,500, in 2018 to $6,250, in 2019 to$7,000 and in 2020 to$7,500. At a minimum the pension fund should be 115%funded,then no city contribution is required. If it falls below 100%,the city has to contribute. The 2017 increase brings their portfolio to 130%funded. They are not asking for a city contribution increase. The requested increase is for the retention of fire fighters. Other cities are above us and will be at$10,000 by 2020. The increased liability of going from $4,575 to $5,500 is $46,000. There are two members with 20 years of service and they will be leaving in the next year(funding for them is already available). There is one member at 15 years of service. Members have to have ten years to be vested, but only get 60%of their pension. The pension amount is increased 4%each year. Council Workshop Minutes March 14,2016 Page 2 The Relief Association would like to see us at$7,500 by 2020 to be consistent with other cities. They have not had a raise since 2009. The requested raise would be effective January 1, 2017. In 2009 they were 98%funded so the city was not required to contribute. City Administrator McKnight recommended approval for 2017 and this will be discussed again next year. This item will be brought to a Council meeting for approval. The majority of Council agreed to a one year increase. Request for Fire Department at High School Football Games The Farmington High School has requested the fire department be available at high school football games. This would involve four fire department members and equipment costs. The school district contracts with ALF for ambulance service. Chief Larson noted fire fighters are not as trained as paramedics and cannot transport patients to the hospital. Fire and rescue would be on the scene to assist and coordinate resources getting into the stadium. There are currently two police officers at football games. The ambulance is not on scene. The school district has hired a doctor to be on scene and he would call for the ambulance. Firefighters are licensed up to an EMT or EMR level. The vehicle used would be a light rescue truck or utility vehicle. Chief Larson is not comfortable with any event with 5,000 people and no standby. The cost would be $3,000 -$4,000 per night. Council supported the request. Community Solar Subscriber Collaborative The City Council had authorized staff to subscribe to solar production through a collaborative RFP process with the Met Council. Xcel Energy is required to produce a percentage of its total retail electric sales through solar energy by 2020. Five developers responded to the RFP. The City Council was asked to review the proposal from SolarStone Community LLC. It has been estimated that 1,649 kWh/1 KW of solar energy would be needed for City Hall,the Rambling River Center and the Ice Arena. The contract would be a 25-year commitment and would provide a savings of$189,357 over 25 years. The first two years we would not have a savings. The savings would show up as a credit on the Xcel Energy utility bills. The solar gardens for our use would be located in Goodhue and Rice counties. Council discussed this item and had many questions. Council decided to not move forward with the project. There is not enough specific information and the contract is non-negotiable. 20-Year Financial Plan and 2017 Budget Staff used the 2016 expenditures of$14,769,073 as a starting point, subtracted the debt of $2,970,848 which left$11,798,225 as a base 2016 operating levy number. The operating budget pays for everything except debt. This number was increased 3%in 2017 and 2018, and 5%in 2019. This was repeated every three years. These costs cover labor, etc.,with the third year increase of 5%assuming we have growth in staffing. In 2011 and 2012 we tried the CIP approach with fire and other departments with equipment. Firefighter equipment shows a$9,000 increase each year for three years. Police equipment will increase$36,000 in 2017 and 2018. This is equipment only,not vehicles. Trail maintenance is increased by$15,000 each year. We currently budget$30,000. For the building CIP we collect$36,000 in taxes and LGA money for $30 million in buildings which is not enough. The 2%industry standard would be$600,000 which is not realistic for us. Larger dollar amounts were included in years we could afford it. Regarding revenues other than taxes, staff used the 2016 number and increased it by 1% Council Workshop Minutes March 14,2016 Page 3 annually. The fiscal disparities 2016 number has been decreased by 2%annually. The debt levy in 2017, 2018 and 2019 goes up and after that it goes down. The pay as we go line item is to collect cash to pay for equipment and street projects as we go to avoid using credit. The potential levy increase for 2017 is 5.03%, in 2018 7.62%, and 2019 7.05%. The debt as a percent of the overall levy in 2017 is 31.54%. Growth is projected at 1.29%for the next several years. The CIP and 2017 budget discussion will continue at the March 28, 2016, Council workshop. MOTION by Bartholomay, second by Pitcher to adjourn at 8:51 p.m. APIF,MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant Yo�FAR194 City of Farmington 11111101 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 'W.41,26044 www.cifarmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Approve Joint Powers Agreement to Complete a Systems Plan for Broadband Services-Administration DATE: March 21, 2016 INTRODUCTION The city has been working cooperatively with Dakota County, the Dakota County Community Development Agency and the ten other large cities in the county on a complex broadband project over the past two years. The city council previously approved a joint powers agreement for this projects. After some concerns were raised as a part of this project a simplified joint powers agreement for the creation of a systems plan has been proposed to replace the previous joint powers agreement. DISCUSSION Farmington has been participating in the Dakota County Broadband Projects since its inception two year ago. This project is looking at the options available to the county and its cities in providing broadband access to the government agencies for both governmental and private purposes. The city council is well aware of this project and has discussed it at several work sessions. One of the work sessions included representatives from the Dakota County Community Development Agency making a presentation on this issue,the potential benefits to Farmington and provided you an opportunity to get questions that you had on this issue answered from county and city staff. After Farmington and three other cities approved the JPA for this project one of the attorneys for two other cities raised some concerns about the agreement. After a number of meetings with staff and all of the city attorneys a revised JPA has been developed to get the systems plan work completed. This work will take us to the point of making a final decision about participation in the project later this year. The city attorney has participated in this project and does not have any concerns about the revised JPA. BUDGET IMPACT The cost of this portion of the project totals $170,763.50. The cost will be split between Dakota County (1/3),the Dakota County CDA(1/3)and the cities (1/3). Farmington's portion of the city cost totals $3,164. This cost will be taken from the 2016 EDA budget. ACTION REQUESTED Ask any questions you have on the revised joint powers agreement. Once the city council is comfortable with the document a motion should be made to approve the joint powers agreement to prepare a systems plan for the Dakota County Broadband Project. ATTACHMENTS: Type Description D Exlubit JPA Broadband JOINT POWERS AGREEMENT Preparation of the Dakota County Broadband Systems Plan Dated as of _,2016 Table of Contents 1. Statement of Purpose and Powers to be Exercised 1 2. Manner of Exercising Powers 1 3. Defined Terms 1 4. Participants 2 5. CDA's Powers 2 6. Systems Plans 3 7. Acquisition of Interests in System Components 3 8. Default; Remedies 4 9. Limitation of Liability 4 10. Amendments 4 THIS JOINT POWERS AGREEMENT (as amended from time to time, this "Agreement") is entered into as of , 2016, by and between the parties described on Schedule A attached hereto (the "Participants"), pursuant to Minnesota Statutes, Section 471.59. 1. Statement of Purpose and Powers to be Exercised. The purpose of this Agreement is to provide for the joint exercise of the statutory powers common to the Participants (defmed below), to prepare Systems Plans; including, but not limited to, the power to enter into agreements necessary or convenient to the exercise of such powers and to take such other actions reasonably necessary to complete the System Plans (together with other powers described herein, the "Joint Powers"). Notwithstanding any other provision of this Agreement, this Agreement does not authorize the use of Participants' statutory authority to: (a) establish, operate, maintain and improve the existing Systems or establish fees and charges with respect thereto; (b) acquire, own and convey real or personal property; (c) issue bonds or obligations under any law under which the Participants may independently issue and use the proceeds of the bonds or obligations to carry out the purposes of the law; (d) exercise power of eminent domain; (e) exercise any taxing powers; (f) pledge the full faith or taxing power of any of the Participants for any purpose whatever; or (g) issue general obligation indebtedness of any Participant. Participants agree that any of the powers specifically excluded from this Agreement may be authorized by the Participants pursuant to a subsequent joint power agreement as described in paragraph 7. 2. Manner of Exercising Powers. The Joint Powers of the Participants will be exercised through the Dakota County Community Development Agency (the "CDA"), having the powers and duties described herein. The CDA is authorized to exercise the Joint Powers on behalf of and in cooperation with the Participants as provided herein. 3. Defined Terms. Capitalized terms used, but not otherwise defmed, herein shall have the following meanings: "Backbone" means the central portion of the network consisting of redundant optical fiber ring segments interconnecting diverse communications network elements (switches, routers, etc.), including connections at the co-location facility or facilities. Generally, the backbone capacity is greater than the networks connected to it. "C-Net" means the use of the System on any basis other than by the Participants for their governmental and institutional purposes. "CDA" means the Dakota County Community Development Agency, and its successors and assigns. "I-Net" means the use of the System by the Participants for their governmental and institutional purposes. "Inventory" means a detailed list and summary of the Participants' Systems Components and Backbone, which may become a part of a consolidated system, if any, in the future. "IRU" or "Indefeasible Rights to Use" means agreements between a Participant with respect to the use of System Components in which the Participant has an ownership or other legal interest. 1 "Participation Fee" means, as to Participants, the non-refundable fees identified on Schedule A hereto next to their respective names. "Systems"means each Participants' telecommunication infrastructure including, without limitation, fiber optic cables, hand holes, switches and routers and other network elements that provide broadband, I-Net and C-Net services within the boundaries of each of the Participants. "Systems Components" means the various necessary or convenient elements of the Systems, including, without limitation, fiber optic cables, hand holes, switches and routers, together with contract rights and agreements necessary or convenient in connection with the operation,maintenance, development and use of such components. "Systems Plans" means general information sufficient for Participants to evaluate the Systems' physical aspects and the methods for funding or financing the costs associated with the operation, maintenance, and development of the Systems. The Systems Plans shall identify the ownership, operation, maintenance, improvement use, and methods of funding, and/or fmancing, the Systems. 4. Participants. A. General. The Participants are: the CDA, Dakota County, Apple Valley, Burnsville, Eagan, Farmington, Hastings, Inver Grove Heights, Lakeville, Mendota Heights, Rosemount, South St. Paul and West St. Paul. B. Participation Fee. The aggregate of the Participation Fees described on Schedule A is intended to be an amount sufficient to pay the costs identified on Schedule B attached hereto. Such fees were allocated to the Participants using the formula that was used for cost sharing for the initial Design Nine study. 5. CDA's Powers. The CDA shall have the general powers described in paragraph 1 of this Agreement, including,but not limited the powers to do the following: A. To negotiate and enter into contracts for professional services and consultants for the gathering of information necessary to complete the System Plans and determine the cost of operating the Systems; B. To sue and be sued with regard to contracts entered into pursuant to the authority granted hereunder; C. To review and present the Systems Plans to the Participants; and D. To discharge other duties consistent with the purposes of this Agreement and/or as required by statute. 2 6. Systems Plans. A. Content. The Systems Plans shall include the following components: i. The design, construction, operation, marketing, public relations, maintenance, expansion and lifecycle replacement costs of the Systems and Systems Components; ii. An Inventory; iii. The terms under which Systems Components presently owned by Participants will be available for use as part of the Systems; iv. A valuation for all Systems Components presently owned by Participants which will be available for use as part of the Systems; v. User fees for the Systems; and vi. Methods of funding and financing. B. Methodology. They Systems Plans shall be prepared capitalizing on the recent work completed by the various committees of the City-County Managers group utilizing it to the extent deemed appropriate by the Participants. City-County Managers will review the Systems Plans or portions thereof as they are prepared or become available. C. Review of the Systems Plans. Following the preparation of the Systems Plans, the CDA shall distribute the Systems Plans to the Participants for review. 7. Acquisition of Interests in System Components. Upon completing their review of the Systems Plans, Participants may elect to proceed with a joint powers agreement for the following purposes: (a) creating a board to manage and operate consolidated Systems; (b) potential expansion of the Systems; (c) operation and maintenance cost sharing associated with the Systems; (d) complete, update and/or expand the Backbone network interconnecting the Systems; (e) establishment of usage rates; and (f) identifying funding. Those participants that choose to proceed with a subsequent joint powers agreement will enter into an IRU with the board created thereby and other electing participants pursuant to the terms of the subsequent joint powers agreement and the IRU(s). 8. Default; Remedies. Upon the occurrence of any default hereunder, the CDA and each Participant shall have any and all remedies available to it at law or in equity. 9. Limitation of Liability. As provided in Minnesota Statutes, Section 471.59, Subd. 1 a, no Participant shall be liable for the acts or omissions of another Participant, unless it has specifically agreed in writing to be responsible for the same. For purposes of determining total liability for damages, each Participant and the CDA are considered a single governmental unit and the total liability for all of the Participants and the CDA shall not exceed the limits on governmental liability for a single governmental unit as specified under Minnesota Statutes, Sections 466.04, Subd. 1, or as waived or extended by the CDA or all Participants under 3 Minnesota Statutes Sections 466.06; or 471.981. This provision does not protect a Participant or the CDA from liability for its own independent acts or omissions not directly related to the exercise of the Joint Powers under this Agreement. Neither the CDA nor any Participants shall have the power hereunder to do any act or thing the effect of which is to create a charge or lien against the property or revenues of the CDA or another Participant, except as expressly provided in herein or in any of the documents authorized herein. 10. Amendments. This Agreement may be amended, at any time and from time to time,by the Participants. IN WITNESS WHEREOF, each of the Participants has caused this Agreement to be executed on its behalf by its respective authorized officers, all as of the date first above written. DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY Date: By: Its: 4 CITY OF FARMINGTON Date: /076)/4 By: Todd Larson,Mayor Attest: IOC, Date: yy��,4 �l a�/� By: �,1�David McK Administrator 9 SCHEDULE A Dakota County Broadband Systems Plan Participation Fee Cost-Share Concept One-third of costs borne by Dakota County Community Development Agency One-third of costs borne by Dakota County One-third of costs borne by cities of over 10,000 pro-rata on pot.ulation Estimated Systems Plan Costs $ 148,490.00 Contingency 15% $ 22,273.50 Total Estimated Cost $ 170,763.50 - . y''ao�. al a' u us ° ;1 ors., .. CDA Share $ 56,921.17 County Share $ 56,921.17 City Share $ 56,921 17 4 a +- < x5 45.:x. 4 ..=.I ,iiA'k��_ <n,,,: i .r_z..�..�.�_. City cost distribution based on % of total of 11 cities with population over 10,000 Participants Population %of Population Amount Due Apple Valley 49,084 12.94% $ 7,365.17 Burnsville 60,306 15.90% $ 9,049.06 Eagan 64,206 16.93% $ 9,634.26 Farmington 21,086 5.56% $ 3,164.00 Hastings 22,172 5.84% $ 3,326.96 Inver Grove Heights 33,880 8.93% $ 5,083.77 Lakeville 55,954 14.75% $ 8,396.03 Mendota Heights 11,071 2.92% $ 1,661.23 Rosemount 21,874 5.77% $ 3,282.25 South St Paul 20,160 5.31% $ 3,025.06 West St Paul 19,549 5.15% $ 2,933.37 TOTAL 379,342 100.00% $ 56,921.17 1 • SCHEDULE B Dakota County Broadband Estimated Systems Plan Elements and Costs Project Component Est. Costs Provider Legal Services $8,000 Preparation of Systems Plan Inventory,Design,etc $68,990 Elert 4/17/15 proposal,all options Balance of Systems Plan work $15,000 Design Nine-assumed split Preparation of Systems Funding Plan $51,500 Design Nine-assumed split Additional consulting costs $5,000 Contingency $22,274 • Total $170,764 2 4FA04 City of Farmington �. p 430 Third Street Farmington,Minnesota % o 651.280.6800 -Fax 651.280.6899 4P•4 O' WWW.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Cynthia Muller,Executive Assistant SUBJECT: Approve Temporary On-Sale Liquor License Masonic Lodge-Administration DATE: March 21, 2016 INTRODUCTION The Corinthian Masonic Lodge is requesting a temporary on-sale liquor license for their annual awards dinner. DISCUSSION The Masonic Lodge is requesting a temporary on-sale liquor license for their annual awards dinner to be held on April 15,2016 at 326 Third Street. Per state statute, a temporary on-sale liquor license must first be approved by the city and then forwarded to the state for approval. BUDGET IMPACT The State of Minnesota waives all fees for temporary liquor licenses for non-profit organizations. Therefore, the city has not established a fee for a temporary on-sale liquor license. ACTION REQUESTED Approve the attached application for a temporary on-sale liquor license for the Corinthian Masonic Lodge for their annual awards dinner on April 15,2016. ATTACHMENTS: Type Description 13 Exhibit Temporary On-Sale Liquor License Application „s las„ _ Minnesota Department of Public Safety n crta e Alcohol and Gambling Enforcement Division i it -/`,n Yl' P , 445 Minnesota Street,Suite 222,St.Paul,MN 55101 h,;,n D'r"Tk,'c^n 0 J L 6 651-201-7500 Fax 651-297-5259 TTY 651-282-6555 Alcohol&Gambling Enforcement APPLICATION AND PERMIT FOR A 1 DAY TO 4 DAY TEMPORARY ON-SALE LIQUOR LICENSE Name of organization Date organized Tax exempt number I CGRt,j74/04iv /1'I4Srliv' - L.od3E- I 40-23-/Y46 7 1 Address City State Zip Code I 32 40 5 leg SrRF E'7” I FT4el //t, h// I `Minnesota I Name of person making application Business phone Home phone ' C—2Q-Lc/ /E,2 t1 I T 1 93-2-293-2 207 Date(s)of event _Type of organization 1 Pit/L- 15 j ZO/1P Club ❑Charitable ❑ Religious ❑Other non-profit Organization officer's name City y State Zip Code ART ii eve/2 Sc // I/yv2�-fie I c! Minnesota Organization officer's name City State Zip Code I /''©E- 1<! v'/,(S l SAVAGE I 'Minnesota Organization officer's name City / State Zip Code ICe2A-1 d '218/2:b7— I 41€%//Ay 'Minnesota I 5.S-/z l Organization officer's name City State Zip Code rbCiauceE-- 2/A-�2 1 . de�(� 'Minnesota S"S72 V Location where permit will be used. if an outdoor area,describe. ° ux,y'''14-.v mI.co/v/c. Loc/ge` ANAI,AL &vg /7- /444P POcedAgD5 4)/NA/h-2 if the applicant will contract for intoxicating liquor service give the name and address of the liquor license providing the service. n/otie If the applicant will carry liquor liability insurance please provide the carrier's name and amount of coverage. Al pie APPROVAL APPLICATION MUST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL AND GAMBLING ENFORCEMENT City or County approving the license Date Approved Fee Amount Permit Date Date Fee Paid City or County E-mail Address City or County Phone Number Signature City Clerk or County Official Approved Director Alcohol and Gambling Enforcement CLERKS NOTICE:Submit this form to Alcohol and Gambling Enforcement Division 30 days prior to event. ONE SUBMISSION PER EMAIL,APPLICATION ONLY. PLEASE PROVIDE A VALID E-MAIL ADDRESS FOR THE CITY/COUNTY AS ALL TEMPORARY PERMIT APPROVALS WILL BE SENT BACK VIA EMAIL. E-MAIL THE APPLICATION SIGNED BY CITY/COUNTY TO AGE.TEMPORARYAPPLICATION@STATE.MN.US �a�F i4 City of Farmington p 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 ""'.4 polo- www.ci.farmington.mn.us TO: Mayor, Counclmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Approve Farmington Fire Relief Association 2017 Pension Contribution- Administration DATE: March 21,2016 INTRODUCTION The Farmington Fire Relief Association(FFRA)has requested an increase to the annual pension contribution their firefighters are awarded for their years of service. The association has proposed a series of increases over the coming years. DISCUSSION The FFRA met with the city council at your work session on March 14, 2016 to discuss a proposed increase in the contribution firefighters receive for their years of service. Currently members of the FFRA receive $4,575 per year of service. Members must serve a minimum of ten years to become vested in the organization. Once a member is vested they are eligible for 60% of their retirement account. After ten years of service,members receive an additional 4%per year until they are eligible for 100%of their retirement after 20 years. The FFRA has proposed a plan to get to a contribution amount of$7,000 per year by the year 2020. This request is based upon the research they performed of other local and/or similar cities including Northfield, Lakeville,Rosemount and Shakopee. Members of the FFRA presented a history of their portfolio funding. In 2016 their portfolio is funded at 146%. Over the past ten years this number has steadily increased from a low point of 51%in 2009. The proposal the FFRA brought forward would bring their funding level down to between 101-124%depending on their investment return over those years. In 2012/2013 the FFRA presented information to the city council on their finances. They shared at that time that once their finances were healthier they would propose an increase in the annual funding level The members of the FFRA were not asking for any changes to the$150,000 contribution that the city and FFRA agreed to three years ago. The four year plan they have prepared does not anticipate any increase in the$150,000 annual city contribution. BUDGET IMPACT There is no budget impact anticipated at this time. The current$150,000 annual contribution from the city to the FFRA is not being asked to change as a part of this request. ,ACTION REQUESTED City staff recommends that the first proposed contribution amount for 2017 be adjusted to $5,500 per year effective January 1, 2017. The city council will review additional increase requests on a yearly basis with the FFRA. ATTACHMENTS: Type Description ü Backup Material Work Session Information Coversheet Page 1 of 1 City of Farmington ./( ■-'t, 430 Third Street Farmington,Minnesota �4. 651.280.6800 -Fax 651.280.6899 ' ,0m0'' www.d.farmington.mn.us TO: Mayor,Coundimembers and City Administrator FROM: Jim Larsen,Fire Chief SUBJECT: Farmington Fire Relief Association Pension Request DATE: March 14,2016 INTRODUCTION, The Farmington Fire Department Relief Association seeks an increase to the annual pension contribution. DISCUSSION The Farmington Fire Department Relief Association has not had an increase to the pension contribution since 2007 and lags significantly behind neighboring communities. The members of the Farmington Fire Department are committed to providing exceptional public safety skills to the community and donate hundreds of hours of community service for activities Ike fire prevention,public education,National Night Out,station tours, blood pressure checks,school visits and our Fire Prevention Week open house in order to make Farmington such a great place to live and work. These donated community service hours are in addition to the hundreds of unpaid firefighter academy training hours invested in order to become a member of the department. Finally,members of the department respond at all hours of the day and night to protect their neighbors and Mends for a small hourly wage.The average Farmington firefighter responded to over 300 emergency Incidents last year atone. Members of the Relief Association will present information and discuss this request BUDGET IMPACT An increase in the annual pension contribution from$4,575.00 annually to$5,500.00 annually. With an authorized strength of 50 members the increase could cost up to$46,250.00 per year. ACTION REQUESTED Listen to the presentation and ask any questions you may have. ATTACHMENTS: Type Description 0 Backup Material Fire Relief Pension Proposal http://farmington.novusagenda.cone/agendapublic/CoverSheet.aspx?ItemID=1145&Meetin... 3/17/2016 February 25,2016 Mr.David McKnight City Administrator 430 3'i Street Farmington,MN 55024 Dear Mr.McKnight, As President of the Farmington Firefighters Relief Association I would like to propose a series of modest increases to the annual pension contribution our firefighters are awarded for their years of service beginning January 1,2017.The current benefit is$4,575.00 per year of service and has not been increased since 2009. January 1,2017 from$4,575.00 to$5,500.00 20.22% January 1,2018 from$5,500.00 to$6,250.00 13.64% January 1,2019 from$6,250.00 to$7,000.00 12.00% January 1,2020 from$7,000.00 to$7,500,00 7.14% Please allow me to offer some factors to consider regarding this request and my recommendation: 1. The Benefit of the Pension: In the State of Minnesota nearly 90%of all fire departments are comprised of volunteer or paid on call firefighters.This proud tradition relies upon dedicated members of the community to provide emergency services in time of community need.Here in Farmington we are immensely proud of our 143 years of consistent service to the community using generations of volunteer and paid on call personnel.This kind of community involvement saves a community like Farmington millions of dollars per year in personnel and benefit costs.In comparison to a career firefighter,our paid on call firefighters earn a substantially smaller hourly pay rate and retirement benefit while providing the same services of a career firefighter with the same levels of training and certification requirements. The pension offered through fire relief is critically important to maintain the stability of having senior firefighters and to contribute to the growth of a new generation of firefighters who can provide 20 years or more of service to the City of Farmington.The pension represents a career of service and is a symbol of thanks for the hard work and selfless dedication that members give to the community. A Farmington firefighter begins his or her career by donating hundreds of hours to attend the training academy for no pay whatsoever.The training required for a firefighter is the same whether they are a paid career member or a paid on call firefighter.In addition,your firefighters donate hundreds if not thousands of hours to the community as they represent our fire department at block parties,school tours, parades,and countless public education events throughout every year. As you know,it costs a lot of money to recruit,train and most importantly retain a paid on call firefighter.Volunteer and paid on call fire departments all over the United States are struggling to keep members with all of the increased training and call requirements.A strong annual pension contribution will assist us in attracting and retaining a competent firefighting staff for years to come. Life is busier than ever before and we find it harder and harder to attract members of the community who can give the time and energy to becoming a paid on call firefighter. In order to be competitive we must increase the annual pension contribution.Doing so will help us to retain firefighters who may look at an early out rather than invest hi a 20 year career at Farmington. It is my belief that we would retain a larger group of 20 year members if the payout were greater as these members contemplate retirement 2. Reasonable Pension Increase Request The Farmington Firefighters Relief Association believes the request to increase the annual pension benefit is reasonable and necessary to stay competitive with similarly situated Metro area lump sum relief association benefits. This is a method to retain and motivate firefighters who give considerable commitment to the city.The increase works out to: 2017-$975.00 2016-$750.00 2019-$750.00 2020-$500.00 It should be noted that this increase is not likely to"cost more".The pension fund is currently overfunded and well managed.In addition,over the past year the department has become a more professional organization with the addition of a full time fire chief and morale is high.There is no expected`mass exodus"as has happened in the past. The neighboring cities have increased their pension rates and will be continuing to do so in the near future. I have communicated with all of the neighboring communities and their goal is to have a pension rate of$10,000 per year by 2020. At our current rate we will be less than half of their goal. This will put us a major disadvantage for recruiting and keeping our current firefighters.(See Appendix A) 3. The Value of Consistent Community Support of the Pension Benefit: The Farmington Fire Relief Association believes there is a value in consistent community support. The 10-year average for past municipal contributions is$126,366. For the past three years the city has contributed$150,000. This commitment by the city has not gone unnoticed by the firefighters.Knowing that the city is doing what it can to support the firefighters has contributed to increased morale and dedication by the firefighters to make this a great fire department and city to work for. (See Appendix B) 4. Long Term Fund Sustalnability: The Special Fund investment account managed by the Farmington Fire Relief Association is currently beyond a fully funded status at 146%. It has continued to grow steadily since 2009 after the stock market crash. With the help of a financial advisor our retirement fund has outperformed the state board of investments every year since 2009.(See Appendix C) 5. City Financial Impact: The Relief Association pension portfolio is currently 146%and over funded. With the pension increase to$5,500 it will put the relief association at 129%,and still over funded. Our goal is to stay above 115%and remain over funded at all times. This built in cushion allows fora significant down turn in the stock market and will greatly reduce the possibility of the city being required to contribute to the Farmington Firefighters Relief Association Pension.(See Appendix D) 6. What caused the pension fund to grow so rapidly? We have enjoyed a strong return on our investments over the past year.In addition,we had ten individuals who retired. Several of those members had ten years on the department which only entitles them to 60%of their retirement. Several other members did not complete the required ten years of service to become"vested"and subsequently they did not receive any portion of their retirement.This "extra money"has stayed with the pension fund and helped it grow very rapidly. 7. Future Projections: The future goals of the pension rely upon two income sources to stay the same. The first is an unknown; the stock market. If the stook market continues to grow the funding in the account will grow. The second is the city contribution. We need to maintain the current funding to this account to see additional growth in the fund. We have a number of individuals who will be eligible to retire with 20 years of service in the next year. In addition,we have numerous individuals who have already reached the ten years of service level. If our request is approved,our members are hoping to see a pension rate of$7,500 by 2020. The surrounding fire relief associations are aiming for$10,000 by 2020. This still puts us$2,500 down from what other funds plan to offer,but it shows an effort by the city to support the firefighters without adding additional cost to thecity. We believe that conservative,measured and managed pension benefit increases are both reasonable and necessary to maintain an appropriate firefighting force in the City of Farmington. Thank you for the opportunity to provide this information and open a dialogue on this important matter. Sincerely, #7a - Jeffrey A. lbee-President Farmington Firefighters Relief Association :A. . - -• .. - • • Relief Assodutioni I 70io Population 1 2016 Projetted 2020 . ............. ...._ ....... .........-.......— ... ....... ....._. . ...... Benefit Level Benefit Level ... .. .. . .. .. . . .. . Farmington 21,086 $4,.5 .75 $7,500 ...... Northfield .......___....... 20,007..__.. .. $8,560 $10,606 ...... .. . Lakeville 55,954 $6;877 $10,000. . ............_..... . ....... . . ..,..._._... liosernount 21,874 $7400 $10,000 .... _. ..•• .....t Shakopee 37,073. . $7,500 $10,000. . B. Year i Required Contribution ;Amount City Paid. 2016 $0 . $150,000 • 2015 $0 $150,000 2014 • $o . $150,000 • 2013 $131,694 . $131,694 2012 $154,255 $154,255 2011 $187;713 $187,713 • 2010 $196,802 $196,802 2009 $0 . $0 . 2008 $0 : $73,200 • 2007 • $0 . $70,000 2006 $7,881 ' $31,250 C. -Year ' Prtfullo Funded I o ......... . . ...... .. . 2016 ... 1 146% I 2015 . .. .i.469‘.. iiiiii. 1 115% 1 - 1 2413. J * 1 20.12. 76;i.? . I 2011. 76% 1 2010 J 66% 1 :2669 . .5194. 1 1 2008 - I 99% 2007 I 98% • i46-6 1. lisii • D. - • - • • , Year Rate AMount 1 Stock.Market I Stock Market .. . .. Investment.Return.0% Investment Return 3% . .. . . ....... .. .. . . ... 2017 1 $5,500 126% 130% 20.3.8 6,2.50. I 121ixi 127% • -- _, --• 2pI9 7,000. 115% 124% I ...,. _... ..._............ ()70 J $7*0 I 1...61(A. 1 121% ... ..,. oEFi City of Farmington P.41110', 430 Third Street Farmington, Minnesota . ; a w 651.280.6800 -Fax 651.280.6899 ' .� o»��` ww ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Jim Larsen,Fire Chief SUBJECT: Approve Out of State Travel to Attend Fire Department Instructors Conference-Fire DATE: March 21, 2016 INTRODUCTION A request to send fire department personnel to out of state training in accordance with City of Farmington policy. DISCUSSION The 89th annual Fire Department Instructors Conference(FDIC)is the largest fire service training and trade show event in the United States and will be held in Indianapolis,Indiana April 18-23, 2016. World class instructors will provide classroom and hands on training opportunities throughout the week. In addition, every kind of new technology in the fire and emergency medical services field will be displayed during the trade show with access to the inventors, engineers,manufacturers and sales representatives of products we utilize day in and day out. Chief Larsen and our Training Officer Lt. Rick Fischer,have requested to attend this conference pursuant to established city policy. During the department restructuring, Lt. Fischer was assigned as the department training officer and is responsible for developing our training curriculum and instruction.Attending the conference will assist him by providing exposure to the latest instructional methodologies and trending topics based upon ongoing research in the fire service. It will also give him the opportunity to develop relationships and contacts of other like-minded and similarly assigned instructors from around the United States. Chief Larsen hopes to bring back information and best practices gained from leadership courses and the management of volunteer,paid on call, and part-time personneL In addition,with the specification and building of a new engine-tanker on the horizon wishes to meet with apparatus manufacturers to begin discussing needs. BUDGET IMPACT Registration fees are$2,280.00 to send both members. We have applied for and received a grant award of $2,000.00 for reimbursement of registration fees and associated costs in order to attend FDIC from the Minnesota Board of Fire Training and Education(MBFTE). Other fees would include hotel,travel(city vehicle)and meals pursuant to established policy. These costs are roughly estimated at$2,300. There is a"soft match" requirement of the grant in the amount of$500.00 which would be satisfied by hotel and or meal costs associated with the conference. These expenses have been budgeted for and are available in our operating budget. ACTION REQUE TED Approve the request to send Chief Larsen and Lt. Fischer to the Fire Department Instructors Conference (FDIC)April 18-23, 2016 and reimburse expenses according to city policy. a F i City of Farmington 4p 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 141.4 www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Jim Larsen,Fire Chief SUBJECT: Adopt a Resolution Declaring Surplus Property-Fire DATE: March 21,2016 INTRODUCTION The Farmington Fire Department(FFD)has many pieces of non-compliant personal protective equipment and seeks to donate and/or dispose of this property. DISCUSSION The members of the Farmington Fire Department continue to make progress in the organization and cleaning of our facilities. As part of this on-going effort, staff has found personal protective equipment that has been stored at the fire station for decades in some cases. The National Fire Protection Association (NFPA) standards require the replacement of personal protective equipment after no longer than ten(10)years of service. These items (inventory attached) are no longer serviceable for our firefighting needs but may be suitable for donations to other fire departments in need or surrounding Explorer posts. Staff seeks to have these items declared surplus and will work to locate suitable sites to donate the equipment. If no suitable sites are found, staff would dispose of these items. BUDGET IMPACT None ,ACTION REQUESTED Adopt a resolution declaring items (inventory attached)as surplus and authorize the Fire Chief or his designee to donate or dispose of items. ATTACHMENTS: Type Description D Cover Memo Surplus Gear 03-21-2016 D Cover Memo Surplus Boots 03-21-2016 D Cover Memo Surplus Suspenders RESOLUTION NO. R24-16 A RESOLUTION DECLARING SURPLUS PROPERTY IN THE FARMINGTON FIRE DEPARTMENT Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington was held at the Farmington City Hall on the 21st day of March 2016 at 7:00 p.m. Members Present: Larson, Bartholomay, Bonar, Donnelly,Pitcher Members Absent: None Member Bartholomay introduced and Member Donnelly seconded the following: WHEREAS,the National Fire Protection Association(NFPA)produces recognized safety standards for firefighting personal protective equipment which limit use of PPE to ten years of service; and WHEREAS,the city of Farmington seeks to follow those standards for the safety of firefighting personnel; NOW THEREFORE BE IT RESOLVED that, after due consideration,the Mayor and City Council of the city of Farmington, Minnesota,hereby declare the attached itemized list as surplus equipment and authorize the City Administrator or his designee to dispose of and/or donate(to training academy, Explorer Posts, or other needing entities) said equipment. This resolution was adopted by recorded vote of the Farmington City Council in open session on the 21st day of March 2016. odd Larson, Mayor Attested to the c2.?hi day of March 2016. OVA; .11C47:\U` David McKnight, di mistrator Surplus Turnout gear Manufacture Model Year Coat Pants Name Size: Coat Pants LION 1993 X LION 1994 X JIM FOX 36R GLOBE 1994 X 50/29 RAMWEAR 1995 X X 40/30 40/30 RAMWEAR 1995 X 34/30 RAMWEAR 1995 X 40/28 RAMWEAR 1995 X 38/28 RAMWEAR 1995 X 38/30 RAMWEAR • 1995 X 42/30 RAMWEAR 1995 X 42/30 RAMWEAR 1995 X 30 LION 1995 X 40/28 LION 1995 X 34S LION 1995 X 44/29 LION 1995 X 48/29 LION 1995 X 50/29 LION 1996 X 38/29 LION 1996 X J.CLINKSCALES 44L LION 1996 X T. LARSON 42R LION CMDM 1997 X J.CLINKSCALES 48/29 LION PL86PASM 1997 X M. KISER 34S LION PL86PASM 1997 X J.CLINKSCALES 42R LION CMDM 1997 X 46/29 FIREDEX 1999 X 36/28 FIREDEX 1999 X 40/30 FIREDEX 1999 X 44/32 FIREDEX 1999 X 43/32 LION PSLM2K 2000 X WOESSNER 46L FIREDEX 2001 X 38/30 FIREDEX 2001 X F. BLAHA 44/31 FIREDEX 2003 X 48/32 MORNING PRIDE BPR25I2TG 2003 X 42/29 MORNING PRIDE BRP25I2PG 2004 X 42/27 LION CMDM/PSUM 2005 X X B. PUELSTON 42/32 36R LION CMDM/PSUM 2005 X X B.EIBNER 42/32 36R LION CMDM/PSUM 2005 X X T.CORRIGAN 44/32 36L LION CMDM/PSUM 2005 X X E. PETERSEN 44/32 38R LION CMDM/PSUM 2005 X X C. MATEK 46/32 40R LION PSUM 2005 X C. BENJAMIN 38R LION PSUM 2005 X J.ALM 38R LION PSUM 2005 X M.JACOBSON 38R LION CMDM/PSUM 2005 X X ANDY SKLUZACEK 48/32 48S LION CMDM 2005 X ADAM FISCHER 42/32 LION CMDM/PSUM 2006 X X S. LERBAKKEN 42/32R 36L LION CMDM/PSUM 2006 X X J.BAUMAN 42/32 38R LION CMDM/PSUM X X J. MEYER 42/32R 38R LION CMDM/PSUM X X K.KUCHERA 44/32 38R LION CMDM/PSUM . X X D.THELEN 44/32 42R LION CMDM/PSUM X X T.THRAEN 48/32 42R LION CMDM/PSUM X X T. LARSON 43/32 42L LION CMDM/PSUM X X T.VANDERLINDE 48/32 44L LION CMDM/PSUM X X K. KUEHN 43/32 46R LION CMDM/PSUM X X J.ADELMANN 38/29R 34R LION CMDM X B. ELLINGSWORTH 44/32 LION CMDM X T.VERCH 46/32 LION CMDM/PSUM X X D. MEYER 46/32 42R LION CMDM/PSUM X X J.ELVESTAD 46/32 42R LION CMDM/PSUM X X J.SCHMITZ 48/32 42R LION • CMDM/PSUM X X J.SAUBER 50/35 44XXL LION CMDM/PSUM X X ? 46/32 40R LION CMDM/PSUM X X J.VOGEL 48/32 46R LION PSUM X C.THELEN 34L LION • CMDM X J.ALLBEE 48/32 LION CMDM X C. ROGNLIE 48/32 LION PSUM X T.JOHNSON 42L LION CMDM X D.SENDER 48/32 LION CMDM/PSUM X X M.WISE 42/29S 36R LION CMDM X J.CLINKSCALES 50/32 LION CMDM/PSUM X X K. KELLY 40/32 36XL LION PSUM X R. LINDSTROM 40L LION PSUM X ? 46R LION CMDM X T. HEMISH 54/32 • oL E M tt ww H _J LL1 Iftft N H O X X O %(4 W �1 `Hy' X H x X X H 0ci C7 X X cc H x x x x x x 4. "I x x rn a1 x x x x j `" x co x x � X x t w L M c-1 N 00 00 00 00 r.. r'• rti. r. c''. c''. r''. c. r.. C`. r.. ry. r+.. r''. O O Ol Ol Q) 01 e 01 N N ri ri 1 ri r-1 CC a' cc LU OC CL' OC OC LU LU LiJ LU Lt.! 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Ly W c G G G c c C LU CC CC CC W W W W LL LL LL LL LL 2 2 S Z 2 2 2 2 2 O O O O O O O LL LL CC 0: 0= CC U U U U U U U en en 000000 w w w W W 0 0 0 0 0 0 0 0 0 cn cn cn cn cn cn of '^ cn cn cn cn Ln cn cn cn Ln cn cn (n cn 0 0 0 0 0 0 0 0 0 0C OC cei= w > > > > > > > » 00000 (7 (7 (7 C7 (7 (7 W (7 0 W C7 (D W W 0 w m w m w w w w LU o` U U U U O O O O O O O O O 2 2 2 2 2 2 2 w w w w w w w w w U U U U U � � � � � � � � cn U) cn cn cn cn cn in cn co J 0 0 0 0 0 0 0 0 0 2 ggg 2 2 2 - 2 2 2 2 2 F- F- F- I- I- H I- H F- X X X X X d to d co to co O O O O O O O O O O O O N N N N N N m CO CO m m m J J _I J J J I— a a a a a m m m m m m O 0 0 0 0 0 U U U U U U w w w w w w w w w w C7 U O C7 C7 C7 Z z z z z z Miscellaneous Surplus Manufacture Model Year Comments Date Declared LION/FIREDEX 43 TURNOUT GEAR SUSPENDERS ? y4t AR,�i City of Farmington vp 430 Third Street Farmington,Minnesota 651.280.6800 -Fax 651.280.6899 *+a.4 P,O" www ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Brenda Wendlandt, Human Resources Director SUBJECT: Approve City Participation in City of Apple Valley Auction-Human Resources DATE: March 21, 2016 INTRODUCTION The purpose of this memorandum is to request city council approval to dispose of surplus equipment and provide authorization to the City of Apple Valley to auction this surplus equipment. DISCUSSION The city has an opportunity to dispose of surplus cable telecast equipment and related electronics though the City of Apple Valley's public auction. The items to be auctioned were replaced when the city updated the cable telecast equipment in 2014. Attached to this memorandum is a list of the equipment to be auctioned. The equipment will be sold as one lot and separate from other items to be auctioned. BUDGET IMPACT Any revenue from the sale of the surplus equipment would have a positive impact on the budget and be placed in the cable fund. ACTION REQUESTED Approve the sale of the surplus equipment as identified on the attached equipment list and authorize the City of Apple Valley to administer the sale through it's auction. ATTACHMENTS: Type Description D Backup Material Equipment List Farmington,MN Video and Audio Surplus Equipment List Quantity Manufacturer Part#and Description Notes Camera,Lens,Power,Control 5 Panasonic AW-E300 DSP Convertible Camera 5 Panasonic AW-PS300 Camera Pan/Tilt Power Supply 4 Panasonic AW-PH300 Pan/Tilt Head 5 Fujinon AWLZ14MD55 Power Zoom Lens 1 Panasonic AW-HB505 Multi-port Hub 1 Panasonic AW-PS505 Multiport Hub Power Supply 1 Panasonic AW-RP505 Multi Pan/Tilt Control Panel 1 Panasonic AW_RP305 Multi Pan/Tilt Control Panel 1 Panasonic AW-PS301 AC Adaptor RP-505 1 Panasonic AW-PS510 AC Adaptor 1 Wolfvision EYE-10 Visualizer/Camera Module Monitors,Displays,Televisions 2 Sony PVM-4Biu Quad B/W Monitor 2 JVC TM-910 SU Monitor 1 View Sonic VG150B Monitor 1 NEC 93VX LCD 1 Viewsonic VA1036 LCD Monitor Video&Audio Switching&Mixing 1 ECHOIab MVS3-1W Video Production Switcher Recorders&Players 2 JVC SR-V10U S/VHSHI-Fl Video Cassette Recorder 1 JVC HR-3600U JVC HI-Fl VCR 1 Panasonic PV-9451 VHS Video Cassette Recorder Video Processing&Distribution 1 Focus 444-5330 Focus T-View Pro AV(Scan Convertor) 1 Extron VSC 500 Scan Convertor 1 Extron SW4-VGArs VGA Switch 1 Extron P2-DA6xi VGA Distribution Amplifier Audio Processing&Distribution 2 Shure SCM810 8 Channel Audio Mixer 1 Realistic MPA-40 35 Watt Amp 1 dbx 266XL Compressor/Limit 10 Kramer TP-45 Component/VGA-Audio Transmitter 4 Realistic Speakers 2 Tannoy Speakers 2 Radio STD-10K Audio Divider Combiner Rack Furniture Pieces&Mounts 2 Winsted 56 inch Vertical Rack Cabinet 2 Winsted 85782 2-1/2 inch Plate Caster 2 Winsted 86081 Editor Shelf 2 Winsted 85120 Side Panel Set for Base Console 1 Winsted 85097 Pull Our Keyboard Shelf Page 1 of 2 Farmington,MN Video and Audio Surplus Equipment List Quantity Manufacturer Part#and Description Notes 1 Winsted 85583 Work Surface 1 Winsted 8 Outlet Pack Power Supply 2 Winsted 10710-10 Outlet Power Strip 1 Tripp-Lite Power Strip(6) Miscellaneous 1 Videonics TM3000 w/Keyboard and Manual 1 Sliding Keyboard and Mouse 1 Compix LCG3000D Character Generator 1 Raritan CompuSwitch KVM (2 Breakout Cables) Page 2 of 2 a� ARAliyc► City of Farmington 430 Third Street Farmington, Minnesota 4.fi ° 651.280.6800 -Fax 651.280.6899 11/4:4=f1; °�T.A " www cifarmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Robin Hanson,Finance Director SUBJECT: Approve Bills-Finance DATE: March 21, 2016 INTRODUCTION Attached is the list of bills for February 20 through March 15,2016. DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED Approve the list of bills for February 20 through March 15, 2016. ATTACHMENTS: Type Description © Exhibit List of Bills O D. co co co V' V co 07 N N N N N N N N N N m o o a o a 0 a 0 0 0 0 0 0 ° 0 0 0 O o o a o a a a o 0 0 0 0 0 0 0 0 0 a 5- ° ° 0 0 o ° a 0 0 0 0 ° o ° ° o ° a o co O o O O CCO co CO CO CO CD CD CO CO c0 ZIT, c0 o U a 0 a 0 0 0 0 o o 0 0 0 0 0 0 0 0 of W co aX N W U 5, CO CO Cl) P) d Z Cl) N w 00 U) U) U) U) U) CO CO CO U) CO n. w w a F z z z z z z z z z z re 0 M 0 0 0 0 0 0 0 0 0 0 y Q Q c > W O O F- a K g g g g g K g g g O J Q_' U co U J aO¢ W W W W W W W W W W t. Cl) > K X Z 0 0 0 0 0 0 0 0 0 0 o J W Z Z a, W M IX OL' 0 0 x 0 0 0 0 O W CL W g g Q O O O O O j 0 0 O O O ¢ Q OC O O ¢ w 0 0 0 0 0 0 00' 00' 0 0 m s OL Er. x I s U J J J J J J J J J J 0 CO 0 CO F F W W W 00 CO mm 00 00 [D CI_ a 5 > > O z o z F- Y Y 0 °6 c td w w w of • U) U ) ) 0 0 8 ZZ 0 0 F cr. 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N LL li N D U M m u, v) vJ vJ y U) m W < < < < < < m CO W e z z z z z z So m ((0 •� (0 m m (0 0 0 H �> > > > > > > N N m' V' 0) 0) O 0) 0) O a' < a' a' a' a' a' a' 'C O O) O O O O c%i p p 0 p O O O O p a' N N O m O O o IO l0 o 0 t0 IO IO o C N Iri vi 0 cV N o V: t� Lo co co N p (V N N r N N N o 0. N wO o - 9- OT Q O < < < a0 OD IO o E m C co (o OJ E N N m 0) Of m V a * N U rm V O O a' Z m < t0 t 0 N U ; City of Farmington . � 430 Third Street iri• Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 °'ti www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Robin Hanson,Finance Director SUBJECT: Certification of Delinquent Municipal Services to 2017 Tax Rolls DATE: March 21, 2016 INTRODUCTION Similar to private businesses the city's municipal services (utilities and other service charges)experience delinquent accounts. Due to the legal issues involved the city does not shut off water to occupied properties. For vacant properties the water may be shut off to assist in preserving the property. Due to the cost involved the city does not utilize collection agencies to collect delinquent accounts. Rather, in accordance with state statute,the city certifies delinquent amounts to the county auditor for collection the following year along with the property owner's other property taxes. DISCUS ION Minnesota State Statutes 444.075,429.101 and 443.015 grant municipalities the authority to certify delinquent utility accounts and delinquent billings for weeds,mowing and other city services to the property owner's real estate taxes for collection. Property owners of record with combined delinquent utility bills and services greater than$2,000 as of February 16, 2016 were mailed notices and were advised they could avoid certification by paying the delinquent amount in full by 3:30 p.m. Friday,March 18, 2016. Their combined delinquent balance totaled $7,220.42. The notice also advised the city council would consider this matter at a public hearing on March 21, 2016. As of this writing, one payment has been received in the amount of$2,276.49. The remaining$4,943.93 has not yet been paid. These numbers will be further updated for you at the city council meeting on March 21, 2016 to reflect any payments made on these delinquent accounts by the 3:30 p.m. March 18, 2016 deadline. BUDGET IMPACT Delinquent utility bills do not directly impact the city's budget. The city continues to pay its bills on time,but experiences a significant lag in collections of its utility bills. For example,these delinquent amounts were due January 2016, the city will not receive its money until June and December of 2017. This negatively impacts the city's internal cash flow and negatively impacts staff time. ACTION REQUESTED Adopt the attached resolution certifying the delinquent accounts as an addition to the 2017 taxes of the appropriate properties. ATTACHMENTS: Type Description Resolution Certifying Deqlinquent Municipal 13 Resolution Service Accounts to Dakota County RESOLUTION R25-16 CERTIFYING DELINQUENT MUNICIPAL SERVICE ACCOUNTS TO DAKOTA COUNTY TREASURER/AUDITOR Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota was held at City Hall of said City on the 21st day of March 2016 at 7:00 P.M. The following members were present: Larson, Bartholomay, Bonar, Donnelly,Pitcher The following members were absent: None Member Donnelly introduced and member Bonar seconded the following resolution: WHEREAS,the City had provided sewer,water, storm waters, and solid waste removal services to users of municipal utilities; and WHEREAS,the City has provided mowing, snow removal, and other services to property owners; and WHEREAS,the City has invoiced these users for the services and payment on some of these invoices is delinquent; and WHEREAS, Minnesota State Statute 444.075, 429.101 and 443.015 allow the city to certify charges associated with the aforementioned municipal services for collection with the County Auditor as other taxes are collected. NOW THEREFORE,BE IT RESOLVED by the City Council of the city of Farmington,that: 1. Delinquent charges associated with the municipal services and an administrative fee as defined in the city's Fee Schedule shall be certified to the County Auditor for collection as other property taxes are collected. 2. The amounts shall be certified to their property taxes and due and payable in 2017 at an annual rate of eight percent(8.0%). This resolution adopted by recorded vote of the Farmington City Council in open session on the 21St day of March 2016. / Mayor Attested to the a.? h"/ day of March 2016. c.)04: Administrator SEAL City of Farmington Utility Billing Certification Roll Customers With Combined Accounts Balances>$2,000 As of February 17,2016 Customer Account Amount Number Number Service Address Due PID# 00007830 0221010906 109 Elm Street $ 1,066.79 142583101020 00007830 0221011508 115 Elm Street $ 888.96 142583101031 00007830 0221011580 115 Elm Street#C $ 107.98 142583101031 00007830 0221011553 115 Elm Street#E $ 107.98 142583101031 00007830 0221011562 115#Im Street#F $ 106.52 142583101031 00007830 0221011571 115 Elm Street#h#1#J $ 123.50 142583101031 $ 2,401.73 4F94 City of Farmington 430 Third Street Farmington,Minnesota 651.280.6800 -Fax 651.280.6899 %.4 , www.cifarmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Randy Distad,Parks and Recreation Director SUBJECT: Parks and Recreation Department's 2015 Annual Report DATE: March 21, 2016 INTRODUCTION The Parks and Recreation Department(Department)staff members have collectively compiled a 2015 Annual Report(Report)that identifies Department accomplishments. The Report is attached for your review prior to the meeting. DISCUSSION The Report serves as an informative document that celebrates the Department's work accomplishments in 2015. It provides information about the services our Department provides to the community. Finally, it serves as a larger snapshot of who we are and what we do on an annual basis. I would like to recognize and thank the staff members within the Department for the work they accomplished in 2015. BUDGET IMPACT NA ACTION REQUESTED No action is required. The Report is for informational purposes only. ATTACHMENTS: Type Description D Presentation 2015 Annual Report ''.. : - '' ;,.. , , , .. , -t;'-',:e44:0•11-11.'1'44;v ; .,-' , ., ,,•,•,, „ ,, ,,,-,,,,,,WW .,74--..-..-: .. ,,,, . -.) .■ ■ ;-14 ... . , CD . . ;. , ... . ... .-,,,.- 4 .....,`...• - ''''t. ii.,, 1 ) , , ot ;,110 ' —'16,1'. " , ,.. . . . ,. „,„, . AL•,. 011." , F% 0,..• SI . 911114 1 ... r.......4 I ". • ' ' ''' S . 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O r. r .2 U to O ' U O ,:. a, • �--4 `� C7 Ct c!1 U • v■,,1 aE 1 ) o E ,-0 .2 C En CD Ct 712) (1) al 4"" .0 UO 3 O >, � Cn o O _� O a) � �4 a' ' r ' � o • .� U i-, U 4-a n U U Czt O ' O .�� E, ,-+ U w � 0 C () a � •e - o �, 4-4, , a) � � .r—' •—•, O • • �i .4 � in 0 -c ) � • cn� ct3 � Pa� � � ..� •� .oa; wo ¢. � F. , p4 ;._, . ct 7:$ =�p a, p � o � o � o a) ; 000 � � o>,.4 •.--' _ h • U O W v � x � r E o 07) oEFA�� City of Farmington p 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 '**?.4 NW . WWw.cLfarmington.mn.us TO: Mayor,Councilmembers and City Administrator FROM: Brenda Wendlandt, Human Resources Director SUBJECT: Approve Revised Cable Franchise Policy DATE: March 21, 2016 INTRODUCTION The city has received a request from Frontier Communications for a cable franchise. In order to facilitate this process,the Council is being asked to approve the revised cable franchise policy that complies with state requirements in terms of procedure and regulatory review. DISCUSSION The cities of Apple Valley,Farmington and Rosemount have each received a request from Frontier Communications to provide video service in each city. This service provider would directly compete with the existing cable provider, Charter Communications; and all three cities are viewing the prospect of competition in their communities in a favorable light. The three cities utilize the same cable attorney,Bob Vose,and he was asked to review and revise each city's cable franchise policy as appropriate. The revised policy provides for the cable franchise application and review process to be consistent with state law and establishes an appropriate franchise application fee. A copy of both the red-lined and clean policy is attached for your review In addition to the revised policy,Mr.Vose provided a Notice of Intent to Consider Issuance of Franchise as well as cable franchise application instructions. Those documents,with the appropriate timelines,are attached for council information. Please note that adoption of this policy does not provide any assurances relative to a new franchise approval,but simply establishes a regulatory framework for the applicant and the city to review the franchise application. Finally, it is anticipated the Apple Valley, Farmington, Rosemount Cable Commission will work to negotiate the franchises for each of the three cities as they have done with the current cable provider. BUDGET IMPACT The application fee of$5,000.00, as outlined in the cable franchise application instructions,are used to offset the costs associated with processing applications.Any portion of the application fee which remains after payment of all the city's costs will be refunded. ACTION REQUESTED Approve the attached cable franchise policy. ATTACHMENTS: Type Description 0 Backup Material Cable Franchise Policy-Redlined 0 Backup Material Cable Franchise Policy Backup Material Notice of Intent to Consider Issuance of Franchise i Backup Material Cable Franchise Application Instructions THE CITY OF FARMINGTON, MINNESOTA POLICIES AND PROCEDURES GOVERNING APPLICATION, REVIEW AND RECOMMENDATIONS REGARDING GRANT OF COMPETITIVE CABLE FRANCHISES Preamble The City of Farmington, Minnesota, ("City") administers the cable television Franchise between the City and the current cable franchisee. The City requested, reviewed and considered the applications of the initial prospective cable franchisees and issued a cable Franchise. ModernMede-FR telecommunications policy, law and regulations encourage the emergence of competition in all telecommunications markets. Increased competition in the provision of all telecommunications services is expected, including in the provision of cable television service. The emergence of such competition could increase the quality and availability of enhanced telecommunications services via Cable Systems, encourage lower rates, encourage better customer service, and generally benefit consumers. Policies and procedures regarding application for and review of Applications for competitive cable Franchises will streamline the processing of requests to provide such competitive telecommunications services. In view of the foregoing, the City has formulated policies and procedures for application and review of Applications for competitive Franchises with the City. Pursuant to these policies and procedures, the City has delineated the information which must be provided in an Application for a competitive Franchise, detailed a process for review of such Application and negotiation of the terms of the Franchise agreement, and provided for the presentation of a formal recommendation regarding the grant of such Franchise to the City. Section 1. Definitions "Applicant" shall mean a Cable Company that files an Application with the City. "Application" shall mean the information, documentation, and data, of the form and substance required herein, filed by a Cable Company with the City requesting the City's consideration regarding any recommendation to grant a competitive Franchise. "Application Fee" shall mean a fee which is intended to cover all costs incurred by the City related to processing Applications up to and including the grant of a Franchise (if any) including, but not limited to, staff and attorney's time in reviewing and considering an Application and related information, negotiating the terms and conditions of Franchises, and preparing recommendations, Franchises and other documentation related to such Application. "Cable Company" shall mean any person or entity owning a significant interest in, controlling, operating, managing or leasing a Cable System (or any components thereof in the Public Rights-of- Way)within the state or any person seeking a Franchise to do so. "Cable Service" shall mean (1) the one-way transmission to Subscribers of video programming or other programming services; and (2) Subscriber interaction, if any, which is required for the selection or use of such video programminaprograms or other programming services. For purposes of these Policies and Procedures, "Cable Service" includes, but is not limited to, the provision of Internet "Cable System" shall mean the facility of a Cable Company consisting of a set of closed transmission paths and associated signal generation, reception and control equipment that is designed to provide Cable Service, which includes video programming 2nd which is provided to multiple Subscribers within the City, but such term does not include: (1) a facility that only serves to retransmit the television signals of one or more television broadcast stations; (2) a facility that serves Subscribers without using any Public Rights-of-Way; (3) a facility of a common carrier which is subject, in whole or in part, to the provisions of Title II of the Communications Act, except that such facility shall be considered a System if such facility is used in the transmission of video programming directly to Subscribers, unless the extent of such use is solely to provide interactive on-demand services; ( 4) an open video system that complies with 47 U.S.C. fi 573; ( 5) any facilities of any electric utility used solely for operating its electric utility system; or(6) a translator system which receives and rebroadcasts over-the-air signals. A reference to a Cable System in these Policies and Procedures refers to any part of such System including, without limitation, converters. The foregoing definition of "System" shall not be deemed to circumscribe or limit the valid authority of the City to regulate or franchise the activities of any other communications system or provider of communications service to the full extent permitted by law. "Franchise" shall mean any nonexclusive authorization granted by the City in the form of a Franchise, privilege, permit, license or other municipal authorization to construct, own, control, operate, maintain, or manage a Cable System within the Public Rights-of-Way to provide Cable Service within the City. "Institutional Network" shall mean a discrete communications network provided by a Cable Company to institutions designated by the City, as provided in a Franchise ordinance. "Policies and Procedures" shall mean these policies and procedures governing the City' s processing of Applications for Franchises. "Public Rights-of-Way" shall mean the surface, the air space above the surface, and the area below the surface of any public street, highway, lane, path, alley, sidewalk, avenue, boulevard, drive, concourse, bridge, tunnel, park, parkway, waterway, dock, bulkhead, wharf, pier, easement or similar property or waters within the City in which the City now or hereafter holds any property interest, including, but not limited to, any riparian right, which, consistent with the purposes for which it was created, obtained or dedicated, may be used for the purpose of installing, operating and maintaining a Cable System. No reference in these Policies and Procedures to a "Public Right-of-Way" shall be deemed to be a representation or guarantee by the City that its interest in or other right to control the use of such property is sufficient to permit use of the property for the purpose of installing, operating and maintaining a Cable System. "Subscriber" shall mean any person or entity who receives service via a Cable System. In the case of multiple office buildings or multiple dwelling units, the term "Subscriber" means the lessee, tenant or occupant. Section 2. Applicability of Policies and Procedures These Policies and Procedures apply to every Cable System and every Cable Company, including a Cable Company which constructs, operates and/or maintains a Cable System or provides Cable Service in whole or in part through facilities owned, controlled, managed or operated by another provider, that seeks to operate within the territorial limits of the City. Authority: Minn. Stat. §238.03 Section 3. Franchise requirement Subd. 1. In accordance with state and federal law, the City shall require a Franchise of any Cable Company or Cable System providing Cable Service within the municipality. 2 Subd. 2. Nothing in these Policies and Procedures shall be construed to limit City authority to construct, purchase, and operate a Cable System or otherwise to provide any telecommunications or Cable Services either for internal municipal purposes or for sale to the public. Authority: Minn. Stat. §238.08 Section 4. Application for Franchise Subd 1. In the event the City receives notice that a Cable Company is interested in applying for a Franchise, the City mays-hall publish notice of intent to Franchise within a reasonable time and in accordance with Minn. Stat. § 238.081, subd. 1, which requires publishing notice of intent to Franchise each week for two successive weeks, allowance of 20 days from initial publication for submission of Applications and a public hearing at least seven days before the adoption of a franchise ordinanceintroduction of the Franchise Ordinance into proceedings of the City. See Minn. Stat. — 238.081, subd. 6. Subd. 2. Review of Applications. Applications for a competitive Franchise shall contain such information as is required below in these Policies and Procedures and shall be submitted to the City. Review by the City of any Applications pursuant to these Policies and Procedures and final determination by the City regarding whether to Franchise such Applicant(s) may be based on any relevant factors. Such relevant factors may include comparisons of the level and quality and nature of Cable Services proposed by the Applicant to that provided by the incumbent Cable Company, the needs and interests of the community and institutions, as identified solely by the City, and information regarding industry trends, state of the art technologies, services and other related information. Subd. 3. Public Hearing on Applications. A public hearing before the City affording reasonable notice and a reasonable opportunity to be heard with respect to an Application shall be scheduled in accordance with Minn. Stat. §238.081, Subd. 6. Subd. 4. Negotiation of Franchise Terms. During the period prior to the public hearing on the Application, the responsible City employee(s) and Applicant may negotiate specific Franchise terms and conditions for recommendation and presentation to the City. In addition, during this period the responsible City employee(s) shall review the Application and may request such additional information necessary to make final recommendations to the City. •. ._ e 1.i.••. _ _ . _ _..!a , ..•. -, Subd. 5. Determinations. Determinations by the responsible City employee(s) regarding the qualifications of Applicant(s) and recommendations to the City regarding grant of a Franchise shall be made based on information provided by the Applicant as required herein and such other information which the responsible City employee(s) deem relevant in their sole discretion. The responsible City employee(s) may, in their sole discretion, consider information developed during any negotiations with the Applicant and any information or evidence adduced by the incumbent Cable Company. After the public hearing referenced in Subd. 3, the responsible City employee(s) shall issue written recommendations to the City regarding such Application. These recommendations may include a Franchise document for adoption by the City. Subd. 6. Award of Franchise. A Franchise may be awarded only by an ordinance adopted by the City. Subd. 7. Costs of Reviewing Application and Issuing Franchise. The Applicant shall pay the Application Fee required below. The Application Fee is required for the purpose of reimbursing the City for all costs associated with processing Applications pursuant to these Policies and Procedures through and including any granting of a Franchise. Any portion of the Application Fee;which remains 2 after payment of all the City's costs will be reimbursed to the Applicant. Should the Application Fee not cover the expenses of the City, those unreimbursed expenses shall be reimbursed prior to any consideration of the Franchise by the City. A successful Applicant shall be fully responsible to reimburse the City for all costs of awarding the Franchise. Subd. 8. Franchising nonprofit or municipally-owned system. Nothing contained in this Section prohibits the City from franchising a nonprofit or municipally-owned system. The municipality or nonprofit entity shall be considered an Applicant subject to these Policies and Procedures. Authority: Minn. Stat. §238.081 Section 5. Information Required in Application. An Application for a competitive Franchise must be signed by an authorized officer or principle of the Cable Company and be notarized and must include at least the following: Cable Services within the City Plans for channel capacity, including both the total number of channels capable of being delivered and actually to be delivered upon system activation; - - __ _ . _ _ _ _ _ _•_ _-- • _ - _ •_• _• _ - _ •- A __ __ A statement of the television and radio broadcast signals for which permission to carry has been obtained or will be requested from the Federal Communications Commission; 3) plans for analog and digital channels capable of be energized in the system and the number of analog and digital channels to be energized immediatelyln the case of a telephone provider, a copy of the MPUC certificate of authority; 4) a statement of the television-and radio signals for which permission to carry will be requested from the Federal Communications Commission, or any other required regulatory agency; 54) aA description of the proposed system design and planned operation, including at least the following items: +a.}the general area for location of antennae and the head-end facilities,-from which programming will be received; or description of programming delivery plan if otherwise; ++fib. •- - -- - - - - - - - •- activated in conjunction with the Cable System an explanation of the ownership of the facilities comprising the video system; +iic.) the type of automated services to be provideda map identifying the proposed initial service area(s) in the City; cervices to be made available to residentsa proposed schedule for expansion of service beyond the initial service area or description of the propsed policy for such expansion; e. the schedule for activating two-way capacity; i.e. capacity to send video signals "upstream"i vf.}the number of channels and services to be made available for community/_access broadcastinq, and a proposal for providing community access programming; and 2 q. a general description of any non-video services such as telephone service, high speed internet or data transmission services to be provided in the City. -vi5)a plan A proposal for funding of facilities and staff for community/_access programming facilities and/or staffa plan for interconnection and provision of such programming in cooperation with the incumbent Cable Company. 6) plans for the provision of Institutional Netwerk capacity and services or other " in kind" services and tThe terms;and conditions and technical standards under which particular services is to will be provided to institutions, and identification of any plans for providing free or reduced price video or data transmission services or capacity or other"in-kind" services to governmental, educational, and other institutional entities; 87) aA schedule of proposed service rates •• - _ _ _ -- - . - _ e- _ . _- , and athe proposed policy regarding charges for unusual or difficult service connections of services; 08) aA time schedule for constructimen and activating ef-the enti-re-system wit-11-414e-time- including _ the sequence for wiring the in which video service will be activated in various parts of the area to be servedCity; 1-99) information supporting and indicating A statement indicating the applicant' s financial, technical and legal qualifications and experience in the cable communications video services field, if any; 140) an 'Identification of and contact information for the municipalities in which the applicant either owns or operates a video Ssystem, directly or indirectly, or has outstanding holds video Ffranchises for which no system has been built; 121) detailed pPlans for financing of the proposed system, which must indicate everyincludinq significant anticipated source of capital and significant limitations or conditions with respect to the availability of the indicated sources of capital; 192) aA statement of ownership detailing the corporate organization of the applicant, if any, including the names and addresses of officers and directors and the number of shares held by each officer or director, and intra company relationship including a parent, information identifvinq all subsidiary or affiliated cempanycompanies or businesses; 143) aA statement of a form and substance acceptable to the City indemnifying the City fully against any claims or liabilities alleged as the result of City' s exercise of these Policies and Procedures including any such claims or liabilities alleged or asserted by the incumbent Cable Company; 154) an agreement to pay the City a Franchise fee in the same percentage of gross revenues as the incumbent providers; 16} a notation and explanation of omissions or other variations with respect to the requirements of the Application; and 17) submission of an Application Fee in the amount of$20,000An application fee in an amount identified in the Notice of Intent to Consider Issuance of Franchise to offset the City's costs associated with processing applications. Any portion of the application fee which remains after payment of all the City's costs will be refunded. Authority: Minn. Stat. §238.081, Subd. 2 and 4. 2 THE CITY OF FARMINGTON, MINNESOTA POLICIES AND PROCEDURES GOVERNING APPLICATION, REVIEW AND RECOMMENDATIONS REGARDING GRANT OF COMPETITIVE CABLE FRANCHISES Preamble The City of Farmington, Minnesota, ("City")administers the cable television Franchise between the City and the current cable franchisee. The City requested, reviewed and considered the applications of the initial prospective cable franchisees and issued a cable Franchise. Modern telecommunications policy, law and regulations encourage the emergence of competition in all telecommunications markets. Increased competition in the provision of all telecommunications services is expected, including in the provision of cable television service. The emergence of such competition could increase the quality and availability of enhanced telecommunications services via Cable Systems, encourage lower rates, encourage better customer service, and generally benefit consumers. Policies and procedures regarding application for and review of Applications for competitive cable Franchises will streamline the processing of requests to provide such competitive telecommunications services. In view of the foregoing, the City has formulated policies and procedures for application and review of Applications for competitive Franchises with the City. Pursuant to these policies and procedures,the City has delineated the information which must be provided in an Application for a competitive Franchise, detailed a process for review of such Application and negotiation of the terms of the Franchise agreement, and provided for the presentation of a formal recommendation regarding the grant of such Franchise to the City. Section 1.Definitions "Applicant"shall mean a Cable Company that files an Application with the City. "Application" shall mean the information, documentation, and data, of the form and substance required herein, filed by a Cable Company with the City requesting the City's consideration regarding any recommendation to grant a competitive Franchise. "Application Fee"shall mean a fee which is intended to cover all costs incurred by the City related to processing Applications up to and including the grant of a Franchise (if any) including, but not limited to, staff and attorney's time in reviewing and considering an Application and related information, negotiating the terms and conditions of Franchises, and preparing recommendations, Franchises and other documentation related to such Application. "Cable Company"shall mean any person or entity owning a significant interest in, controlling, operating, managing or leasing a Cable System (or any components thereof in the Public Rights-of-Way)within the state or any person seeking a Franchise to do so. "Cable Service"shall mean (1)the one-way transmission to Subscribers of video programming or other programming services; and (2) Subscriber interaction, if any, which is required for the selection or use of such video programming or other programming services. "Cable System" shall mean the facility of a Cable Company consisting of a set of closed transmission paths and associated signal generation, reception and control equipment that is designed to provide Cable Service,which includes video programming and which is provided to multiple Subscribers within the City, but such term does not include: (1) a facility that only serves to retransmit the television signals of one or more television broadcast stations; (2) a facility that serves Subscribers without using any Public Rights- of-Way; (3) a facility of a common carrier which is subject, in whole or in part, to the provisions of Title II of the Communications Act, except that such facility shall be considered a System if such facility is used in the transmission of video programming directly to Subscribers, unless the extent of such use is solely to provide interactive on- demand services; (4) an open video system that complies with 47 U.S.C. §573; (5)any facilities of any electric utility used solely for operating its electric utility system;or(6)a translator system which receives and rebroadcasts over-the-air signals. A reference to a Cable System in these Policies and Procedures refers to any part of such System including, without limitation, converters. The foregoing definition of"System"shall not be deemed to circumscribe or limit the valid authority of the City to regulate or franchise the activities of any other communications system or provider of communications service to the full extent permitted by law. "Franchise"shall mean any nonexclusive authorization granted by the City in the form of a Franchise, privilege, permit, license or other municipal authorization to construct, own, control, operate, maintain, or manage a Cable System within the Public Rights-of-Way to provide Cable Service within the City. "Institutional Network"shall mean a discrete communications network provided by a Cable Company to institutions designated by the City, as provided in a Franchise ordinance. "Policies and Procedures"shall mean these policies and procedures governing the City's processing of Applications for Franchises. "Public Rights-of-Way"shall mean the surface, the air space above the surface, and the area below the surface of any public street, highway, lane, path, alley, sidewalk, avenue, boulevard, drive, concourse, bridge, tunnel, park, parkway, waterway, dock, bulkhead,wharf, pier, easement or similar property or waters within the City in which the City now or hereafter holds any property interest, including, but not limited to, any riparian right, which, consistent with the purposes for which it was created, obtained or dedicated, may be used for the purpose of installing, operating and maintaining a Cable System. No reference in these Policies and Procedures to a "Public Right-of-Way" shall be deemed to be a representation or guarantee by the City that its interest in or other right to control the use of such property is sufficient to permit use of the property for the purpose of installing, operating and maintaining a Cable System. "Subscriber"shall mean any person or entity who receives service via a Cable System. In the case of multiple office buildings or multiple dwelling units, the term "Subscriber"means the lessee,tenant or occupant. 2 Section 2.Applicability of Policies and Procedures These Policies and Procedures apply to every Cable System and every Cable Company, including a Cable Company which constructs, operates and/or maintains a Cable System or provides Cable Service in whole or in part through facilities owned, controlled, managed or operated by another provider that seeks to operate within the territorial limits of the City. Authority: Minn. Stat. §238.03 Section 3. Franchise requirement Subd. 1. In accordance with state and federal law, the City shall require a Franchise of any Cable Company or Cable System providing Cable Service within the municipality. Subd. 2. Nothing in these Policies and Procedures shall be construed to limit City authority to construct, purchase, and operate a Cable System or otherwise to provide any telecommunications or Cable Services either for internal municipal purposes or for sale to the public. Authority: Minn.Stat. §238.08 Section 4. Application for Franchise Subd I. In the event the City receives notice that a Cable Company is interested in applying for a Franchise, the City may publish notice of intent to Franchise within a reasonable time and in accordance with Minn.Stat. §238.081, subd. 1,which requires publishing notice of intent to Franchise each week for two successive weeks, allowance of 20 days from initial publication for submission of Applications and a public hearing at least seven days before the adoption of a franchise ordinance. Subd. 2. Review of Applications.Applications for a competitive Franchise shall contain such information as is required below in these Policies and Procedures and shall be submitted to the City. Review by the City of any Applications pursuant to these Policies and Procedures and final determination by the City regarding whether to Franchise such Applicant(s) may be based on any relevant factors. Such relevant factors may include comparisons of the level and quality and nature of Cable Services proposed by the Applicant to that provided by the incumbent Cable Company, the needs and interests of the community and institutions, as identified solely by the City, and information regarding industry trends, state of the art technologies, services and other related information. Subd. 3. Public Hearing on Applications. A public hearing before the City affording reasonable notice and a reasonable opportunity to be heard with respect to an Application shall be scheduled in accordance with Minn. Stat. § 238.081, Subd. 6. Subd. 4. Negotiation of Franchise Terms. During the period prior to the public hearing on the Application, the responsible City employee(s)and Applicant may negotiate specific Franchise terms and conditions for recommendation and presentation to the City. In addition, during this period the responsible City employee(s) shall review the Application and may request such additional information necessary to make final recommendations to the City. 3 Subd. 5. Determinations. Determinations by the responsible City employee(s) regarding the qualifications of Applicant(s) and recommendations to the City regarding grant of a Franchise shall be made based on information provided by the Applicant as required herein and such other information which the responsible City employee(s) deem relevant in their sole discretion. The responsible City employee(s) may, in their sole discretion, consider information developed during any negotiations with the Applicant and any information or evidence adduced by the incumbent Cable Company. After the public hearing referenced in Subd. 3, the responsible City employee(s) shall issue written recommendations to the City regarding such Application. These recommendations may include a Franchise document for adoption by the City. Subd. 6. Award of Franchise. A Franchise may be awarded only by an ordinance adopted by the City. Subd. 7. Costs of Reviewing Application and Issuing Franchise. The Applicant shall pay the Application Fee required below. The Application Fee is required for the purpose of reimbursing the City for all costs associated with processing Applications pursuant to these Policies and Procedures through and including any granting of a Franchise. Any portion of the Application Fee which remains after payment of all the City's costs will be reimbursed to the Applicant. Should the Application Fee not cover the expenses of the City, those unreimbursed expenses shall be reimbursed prior to any consideration of the Franchise by the City. A successful Applicant shall be fully responsible to reimburse the City for all costs of awarding the Franchise. Subd. 8. Franchising nonprofit or municipally-owned system. Nothing contained in this Section prohibits the City from franchising a nonprofit or municipally-owned system. The municipality or nonprofit entity shall be considered an Applicant subject to these Policies and Procedures. Authority: Minn.Stat.§238.081 Section 5. Information Required in Application. An Application for a competitive Franchise must be signed by an authorized officer or principle of the Cable Company and be notarized and must include.at least the following: (1) Plans for channel capacity, including both the total number of channels capable of being delivered and actually to be delivered upon system activation; (2) A statement of the television and radio broadcast signals for which permission to carry has been obtained or will be requested from the Federal Communications Commission; (3) In the case of a telephone provider, a copy of the MPUC certificate of authority; (4) A description of the proposed system design and planned operations, including at least the following items: a. the location of the headend facilities from which programming will be received; b. an explanation of the ownership of the facilities comprising the video system; 4 c. a map identifying the proposed initial service area(s) in the City; d. a proposed schedule for expansion of service beyond the initial service area or description of the proposed policy for such expansion; e. the schedule for activating two-way capacity; i.e. capacity to send video signals "up stream"; f. the number of channels and services to be made available for community access broadcasting, and a proposal for providing community access programming; g. a general description of any non-video services such as telephone service, high speed Internet or data transmission services to be provided in the City. (5) A proposal for funding community access programming facilities and/or staff; (6) The terms and conditions under which services will be provided to institutions and identification of any plans for providing free or reduced price video or data transmission services or capacity or other"in-kind"services to governmental, educational, and other institutional entities; (7) A schedule of proposed service rates and the proposed policy regarding charges for unusual or difficult service connections; (8) A schedule for constructing and activating the system including the sequence in which video service will be activated in various parts of the City; (9) A statement indicating the applicant's qualifications and experience in the video services field, if any; (10) Identification of and contact information for the municipalities in which the applicant either owns or operates a video system, directly or indirectly, or holds video franchises; (11) Plans for financing the proposed system, including significant anticipated source of capital and significant limitations or conditions with respect to the availability of the indicated sources of capital; (12) A statement detailing the corporate organization of the applicant including the names of officers and directors, and information identifying all affiliated companies or businesses; (13) a statement of a form and substance acceptable to the City indemnifying the City fully against any claims or liabilities alleged as the result of City's exercise of these Policies and Procedures including any such claims or liabilities alleged or asserted by the incumbent Cable Company; (14) A notation and explanation of omissions or other variations with respect to the application; and (15) An application fee in an amount identified in the Notice of Intent to Consider Issuance of Franchise to offset the City's costs associated with processing applications. Any portion of the application fee which remains after payment of all the City's costs will be refunded. Authority: Minn. Stat. § 238.081, Subd. 2 and4 5 CITY OF FARMINGTON NOTICE OF INTENT TO CONSIDER ISSUANCE OF FRANCHISE Notice is hereby given on behalf of the City of Farmington ("City") of their intent to consider issuance of a competitive franchise. This notice is given in accordance with Minnesota law. The application requirements are set forth in Minnesota Statutes, Section 238.081, subd. 4. In addition: 1. Applications in response to this Notice must be submitted to the City by 4:00 p.m., April 22,2016. 2. Applications must be in writing, notarized, and consistent with the application requirements. Applicants must submit an original and two copies of the application. A copy of the application must be mailed or delivered to Robert J.V. Vose, Esq., Kennedy &Graven,470 US Bank Plaza,200 South Sixth Street,Minneapolis,MN 55402. 3. Each application shall be submitted along with an application fee of $5,000.00 in the form of a certified check made payable to the City. Applicants will be required to reimburse any expenses not covered by the application fee. 4. Applicants are requested to be present at a public hearing before the City beginning at 7:00 p.m. on May 2,2016. 5. The minimum system design and services to be offered are reflected in the City's Policies and Procedures. 6. Upon review of the application(s) and completion of the public hearing, the City will make a recommendation regarding award of franchises. Such recommendation shall be based on applicable law and the record including the application, information provided by the applicant, and other relevant information received by the City including the results of any negotiations with applicant(s) and any information submitted by the incumbent franchise company. 7. In no event will submission of a conforming application entitle any applicant to grant of a franchise. The City expressly reserves the right to reject both conforming and non- conforming applications. 8. Any successful applicant(s) will be required to accept the franchise granted within thirty (30)days after adoption. 467341v1 RJV VS105-3 9. Any questions concerning applications should be directed to Robert J.V. Vose, Esq., Kennedy & Graven, 470 US Bank Plaza, 200 South Sixth Street, Minneapolis, MN 55402;telephone(612)337-9275;e-mail: rvose @ kennedy-graven.com Date: , 2016. Published in: on ,2016 and , 2016. An Affidavit of Publication is required for each publication. 467341v1 R V VSI05-3 CITY OF FARMINGTON,MINNESOTA CABLE FRANCHISE APPLICATION INSTRUCTIONS Applicants for a cable franchise must submit the following information to the City on or before 4:00 p.m.,April 22, 2016. Submission of this information will constitute application for a cable franchise. (1) Plans for channel capacity, including both the total number of channels capable of being delivered and actually to be delivered upon system activation; (2) A statement of the television and radio broadcast signals for which permission to carry has been obtained or will be requested from the Federal Communications Commission; (3) In the case of a telephone provider,a copy of the MPUC certificate of authority; (4) A description of the proposed system design and planned operations, including at least the following items: a. the location of the headend facilities from which programming will be received; b. an explanation of the ownership of the facilities comprising the video system; c. a map identifying the proposed initial service area(s)in the City; d. a proposed schedule for expansion of service beyond the initial service area or description of the proposed policy for such expansion; e. the schedule for activating two-way capacity; i.e.capacity to send video signals"up stream"; f. the number of channels and services to be made available for community access broadcasting, and a proposal for providing community access programming; g. a general description of any non-video services such as telephone service,high speed internet or data transmission services to be provided in the City. (5) A proposal for funding community access programming facilities and/or staff; (6) The terms and conditions under which services will be provided to institutions and identification of any plans for providing free or reduced price video or data transmission services or capacity or other"in-kind"services to governmental, educational,and other institutional entities; 467381v1 RJV MA151-4 (7) A schedule of proposed service rates and the proposed policy regarding charges for unusual or difficult service connections; (8) A schedule for constructing and activating the system including the sequence in which video service will be activated in various parts of the City; (9) A statement indicating the applicant's qualifications and experience in the video services field, if any; (10) Identification of and contact information for the municipalities in which the applicant either owns or operates a video system, directly or indirectly, or holds video franchises; (11) Plans for financing the proposed system, including significant anticipated source of capital and significant limitations or conditions with respect to the availability of the indicated sources of capital; (12) A statement detailing the corporate organization of the applicant including the names of officers and directors, and information identifying all affiliated companies or businesses; (13) a statement of a form and substance acceptable to the City indemnifying the City fully against any claims or liabilities alleged as the result of City's exercise of these Policies and Procedures including any such claims or liabilities alleged or asserted by the incumbent Cable Company; (14) A notation and explanation of omissions or other variations with respect to the application; and (15) An application fee totaling$5,000.00 to offset the City's costs associated with processing applications.Any portion of the application fee which remains after payment of all the City's costs will be refunded. All applications must be notarized and must include detailed responses to the above. Negotiation of Franchise Terms. The City expects to discuss and negotiate franchise terms and conditions with a successful applicant. The City reserves the right to seek franchise terms and conditions or other commitments that meet or exceed the plans contemplated in an application. Additional Information. The City may request such additional information as it deems necessary. In determining whether to issue a franchise, the City will consider the application and additional relevant information. Additional factors the City may consider include the qualifications of applicant(s), the level and quality and nature of services proposed by the applicant,the needs and interests of the community and institutions as identified by the City, and information regarding industry trends, state of the art technologies, services and other related information. 467381v1 RJV MA151-4 Public Hearing on Applications.A public hearing with respect to application(s)will be scheduled at least seven days before the City Council considers adoption of a franchise ordinance. The hearing will afford the public and franchise applicant(s) reasonable notice and a reasonable opportunity to be heard. Existing Franchise.Applicants are advised that Charter Communications currently provides cable television service in the City. Award of Franchise.A franchise may, in the City's sole discretion,be awarded by ordinance. Any questions regarding this application information may be directed to Robert J.V. Vose, Esq., Kennedy & Graven, 470 US Bank Plaza, 200 South Sixth Street, Minneapolis, MN 55402; telephone(612)337-9275; e-mail: rvose @ kennedy-graven.com 467381v1 RTV MA151-4 �oEFAR�Ii� City of Farmington 430 Third Street Farmington,Minnesota 651.280.6800 -Fax 651.280.6899 www.cifarmington.mn.us TO: Mayor, Counci members and City Administrator FROM: Robin Hanson,Finance Director SUBJECT: Financial Review-Draft 2015 Financials DATE: March 21,2016 INTRODUCTION Attached you will find draft 2015 financial results for the following funds: • General Fund • Special Revenues Funds:EDA,Park Improvement and Ice Arena • Liquor Stores • Sewer, Solid Waste, Storm Water, Water, and Street Lights DISCUSSION General Fund Revenues 2015 General Fund revenues totaled$10,491,556 and were 101%or$133,112 more than budgeted. Variances from budgeted amounts are summarized below: General Fund Actual Versus Budget Property Taxes $143,000 Intergovernmental 144,000 Permits (117,000) Other, combined (36,888) Net Revenues, over budget $133,112 Property taxes—This line item has several different components:current property taxes, fiscal disparities, delinquent property taxes/penalties/interest, and the fire truck debt levy. The following recaps the difference between budgeted and actual General Fund property tax revenues. Property Taxes Actual Versus Budget TIF Redistribution(applied to fire truck loan) $155,000 Fire Truck Levy(included in debt levy budget) 120,000 Collection of delinquent taxes/penalties/interest 118,000 Permanent reduction in tax levy, court appeals (66,000) Delinquent 2015 taxes,uncollected (184,000) $143,000 For budget purposes,the fire truck debt repayment is considered debt levy;it is not included in the General Fund Property Tax budget. For financial statement purposes,the tax levy dollars are first recorded in the General Fund and then repaid to the Water Fund(ie. source of the fire truck loan). Intergovernmental—Three areas comprise the majority of the$144K in actual revenues exceeding budgeted amounts and are as follows,higher than budgeted amounts in fire aid-pass through to Fire Relief($46K),MSA maintenance($30K), and police state aid($26K). Permits—New construction permit revenues were$109K less than budgeted, comprising the primary reason for the$120K variance from budget. Building activity was slower;there were 53 new construction single family building permits issued in 2015, compared to 87 permits in 2014, and the inventory of available lots continues to decline. General Fund Expenditures 2015 General Fund expenditures were 95.72%of budgeted amounts or$456,464 under budget and totaled $10,200,153. General Fund Actual Versus Budget Human Resource Costs $185,000 Street Materials/Utilities 103,000 Fuel 89,000 Professional Services,including legal 63,000 Training 35,000 Fire Pension(pass-through) (46,000) Other, combined 27,464 Net Expenditures,under budget $456,464 Human Resource costs—Across all General Fund departments'human resource costs, excludes fire pension,were$185K below budget or within 2.5%of a$7.4 million budget. Street Materials/Utilities—Savings totaling$103,000 were realized in these line items primarily due to milder winter and summer temperatures and, as has been previously shared with council,being short- staffed prevented the streets department from completing some projects that would have otherwise been completed. Fuel—The General Fund benefitted from the low fuel prices available in 2015. Total savings realized approximated$89,000. Professional Services, including Legal—No one particular reason that actual expenditures were less than budgeted. These combined savings were realized over two different areas,professional services and legal, across multiple business units. Training—Surprisingly, at least to me,the business unit with the largest savings in training was fire. As you know their 2015 approach to training was significantly different. During Chief Larsen's first year they were able to leverage his extensive training background and conduct more inhouse training and reduce the outside costs. Now they have a common foundation from which to build. The amounts spent on training in 2016 will be more comparable to prior year's, the money will just be invested differently, including pursuing applicable State of Minnesota certifications. Fire Pension,pass-through—The city received$46,000 more in fire aid than was budgeted(included in intergovernmental revenues above). This amount was passed-through to Fire Relief for firefighter pensions; it is budget-neutraL Other Financing Transfers In—During 2015 $10,000 of liquor store profits were transferred to the General Fund to match Fire Relief and Fire Auxiliary funds for the purchase of new radios for the fire department. Transfers Out—The$10,000 budgeted in risk management for insurance deductible replenishment was transferred to the Insurance Fund where these claims are paid. General Fund,Fund Balance For 2015 the fund balance in the General Fund increased approximately$590K to $4.7 million or 40%of the 2016 budgeted General Fund expenditures which meets the minimum fund balance set forth in the city's Fund Balance policy. General Fund Actual Versus Budget Net Revenues, over budget $133,112 Net Expenses,under budget 456,464 Net Increase in General Fund fund balance $589,576 The historical Fund Balance chart is included in your packet for reference. Other Funds Rambling River Center(included in the General Fund) Overall,the Rambling River Center revenues were$6K more than budgeted amounts. In addition,because we have to track federal grants separately, there were$5K in CDBG funds attributable to the Rambling River Center which are not reflected here. The 2015 expenditure amounts were$20K less than budgeted due to the vacant part-time administrative assistant position, lower utility bills and building repairs. The net result being the City's contribution to the Rambling River Center operation was $95K which was $26K less than was budgeted. Pool(included in the General Fund) Swimming Pool revenues were very similar to the prior year, $60K. Meanwhile, 2015 expenditures totaled $131K, approximately$10K less than budgeted. The net result being the city's contribution to the swimming pool operation was $71K which was $9K less than was budgeted. EDA—Special Revenue Fund Revenues and expenditures are significantly higher than budgeted due to the receipt and subsequent pass- through(ie. budget neutral)of CDBG funds for the following commercial rehabilitation projects:Dakota Lumber, the Farmington Cakery, and the Otten building. Park Improvement—Special Revenue Fund The Park Improvement Fund revenues totaled$47K which was $25K more than budgeted. Revenues are a combination of special assessments,park development fees related to residential new construction,rental income and investment income. Expenditures were primarily related to a new shelter constructed at Fair Hills Park and a new boardwalk constructed in Meadowview Park. Both projects cost less to complete than budgeted. Ice Arena—Special Revenue Fund Once again ice arena operations finished the year`north of zero'with a positive bottom-line of$2,565. This includes offering summer ice. Liquor Operations The downtown stores sales were$57K higher than the previous year,while the Pilot Knob store's sales were $81K lower. The Pilot Knob store saw customer counts adversely impacted by increased competition in neighboring communities and the traffic disruption related to the 195th street reconstruction project.Unlike other areas of the city,milder weather doesn't benefit our liquor stores. Generally, extreme weather is more beneficial. Colder temps,warmer temps,impending storms correlate to increased liquor sales. Milder, in between weather,is not helpful to the liquor stores. The gross profit margin for each store was just below their 25%target with Downtown at 24.8%and Pilot Knob at 24.9%. Meanwhile,the profit as a percent of sales benchmark of 6.5%was just out of reach. The combined profit as a percent of sales was 5.9%for the year. Both stores were negatively impacted by increased competition from neighboring communities as they lowered prices to compete with other liquor stores,which in turn put pressure on the city's liquor stores prices and profit margins. In 2015 security upgrades were needed(prior year's theft),the community transfer was increased(increased investment in the community), a part-time administrative position was added and net sales were lower due to increased competition. Net assets increased$179K,which was less than the prior year's increase of$253K, for the reasons previously mentioned. Following council's `four pots' funding philosophy, after setting aside enough cash for day-to-day operations and the annual administrative transfer,the remaining cash was divided evenly, between the liquor stores' community projects and capital improvements fund,resulting in an addition of$81K to each fund. Finally,during 2015,the city used $10,000 of liquor store profits to assist with the purchase of radios for the fire department and set-aside$10,000 for advertising on the new Zamboni at the ice arena and earmarked the remainder of the 2015 community investment dollars for the TH-3 trail connection to be completed in 2016. Utilities Sewer F d 2015 revenues were higher than budgeted and higher than in 2014. The principal reasons are: 1)increased base winter consumption amounts, 2)increased number of customers, 3)a portion of the 1/1/16 rate increase is carried back to 2015 for those customers in the January and February quarterly cycles who received a portion of their services in 2015 and 4)there was a one-time negative adjustment in 2014 for an incorrectly calculated commercial account(ie. 2014 lower than it otherwise would be). Sewer expenses were less than budgeted amounts, but higher than 2014 expenses. The primary reason for the increased expenses relative to 2014 is the budgeted increase in MCES (Metropolitan Council Environmental Services)fees ($168K). On a combined basis,the remaining line items are less in 2015 than the amounts expended in 2014. Expenses were less than budgeted because the$750,000 for the rebuilding of the sewer line on the north-end of town, in conjunction with the new Lakeville development just to the north, did not occur in 2015. In addition,more is now understood about the cost-sharing for this project and the estimate has been reduced to $50,000 in the 2016 budget. Meanwhile,while revenues were higher and expenses less than budgeted,revenues were insufficient to cover both operations and deprecation of the underlying infrastructure. However,this was less than the anticipated shortfall included in the long-term financial plan which was developed for the sewer fund. Continuing to follow the plan will result in revenues exceeding operational expenses and depreciation in future years. Solid Waste Solid Waste enterprise revenues were similar to the previous year. Solid Waste expenses were less than budgeted amounts. The 2015 increase in expenditures. relative to 2014, is related to higher recycling costs from Dick's for residential properties, including townhomes,an increase in the amount of commercial recycling,and increased disposal fees from Resource Recovery,and increased spring clean-up day costs totaling$54K. This was offset by net savings of$10K realized in other line items. The city disposed of nearly 240 tons more in 2015,than 2014. The fund balance in the solid waste fund increased approximately$250K,which enables the solid waste fund to continue to pay cash for its equipment needs, including the budgeted replacement of the 2004 Rapid Rail truck in 2016. Storm Water Storm Water enterprise revenues were more than budgeted and higher than the previous year,reflecting a rate increase that went into effect 1/1/2015. Rates are generally reviewed every three years. Storm Water expenses were higher than budgeted amounts and more than the previous year The primary reasons for the increase are 1)costs incurred related to pond dredging and 2)storm water funds were used to pay for 195th street reconstruction planning and design costs prior to bond proceeds being available for reimbursement. The reimbursement is included in the `transfers in' line item in this fund. The Storm Water fund recorded a net decrease in fund balance of$163K. This is less than the previous year's loss of$375K, as we are starting to see the rate increase that went into effect in 1/1/15 address not only operational needs,but also address the funding needed to cover the depreciation of the underlying infrastructure. Staying the course with the long-term plan will result in revenues exceeding operational expenses and depreciation in future years. Water Revenues consist of not only water bills,but also special assessments,permits,water availability charges, interest on investments,marked-to-market on investments and rental income. The revenue line items for interest and rent income exceeded budget. Revenue from water availability charges and the`all other revenue'line item were less than budgeted;this seems reasonable given the reduced building permit activity in 2015. Enterprise sales for water were$235K less than budgeted due to decreased water usage,about 40 million gallons less water was pumped in 2015 when compared to 2014. While this has a negative impact on revenues, from an environmental perspective this is good news. The Water Fund expenses were$200K less than budgeted and$73K less than in 2014. In light of the lower water consumption, one would expect 2015 expenditures to be even lower when compared to 2014. The primary reasons 2015 expenses are not lower are higher electrical costs and an additional purchase of chemicals (timing). Overall,the water fund's financial results are good news. Based on the long-term financial plan adopted in 2013,which demonstrated the need for a rate increase which went into effect January 1, 2014,this fund was budgeted to have expenses outpace revenues by$558,000(i.e. loss). In actuality,the loss was $426,000, an improvement of$132,000,sooner than anticipated. $54,000 less in actual depreciation expenses was one of the contributors to the improved financial performance. Continuing to follow the plan will result in revenues exceeding operational expenses and depreciation in future years. Street Lights Revenues exceeded the 2015 budget and were similar to 2014. Meanwhile, expenses were under budget with the savings being primarily in the equipment/supplies and electric line items. This is continued good news. The Street Light Fund, started just a few years ago in 2010,has accumulated sufficient funds(approximately $120K)for the city council to consider some street light improvements. Later this spring staff will bring this back for further discussion. Draft Financial Statements Implications of GASB 68—Accounting and Financial Reporting for Pensions Finally,the financial statements are draft financial statements. There will be at least one additional entry before the financial statements are fnaL This is because the city is required to implement GASB 68— Accounting and Financial Reporting for Pensions as of December 31,2015. You may recall the last couple of year's staff and the auditors have advised this new GASB was on the horizon. The rationale behind GASB 68 is in order for the financial statements to be consistent with the recording of other long-term liabilities, such as compensated absences, assets/liabilities related to pension obligations also need to be recorded. The accounting entry will represent the city's proportionate share of the unfunded retirement PERA liability and the corresponding expense to record the liability. The impact on the day-to-day financial statements is limited to the liquor and solid waste funds,because they are the only two funds which meet both of the following criteria: 1)routinely account for financial activity on an accrual basis (ie. enterprise funds)and 2) have employees who directly charge time to these funds. The remaining city employees' time is charged to the General Fund and their work related to funds, such as, storm water, sewer,water and street lights is recouped through an annual administrative charge to those funds,which is transferred into the General Fund. For these funds it is not recorded in the day-to-day government financial statements. Rather,this entry will be recorded in the government funds as part of the conversion to full accrual basis financial statements. Exact amounts are unknown at this time. You will be further updated on this when the auditors present the audited financial statements in May,possibly sooner. BUDGET IMPACT Included in discussion above. ACTION REQUESTED Review the financial information and ask staff any questions about the information presented. ,ATTACHMENTS; Type Description ® Exhibit General Fund-2015 Revenues and Expenditures ® Exhibit 2015 General Fund Fund Balance Chart D Exhibit Other Funds -2015 Rev and Expenditures D Exhibit Liquor-2015 Revenues and Expenses 0 Exhibit Utilities -2015 Revenues and Expenses In i a 1 - T, , 1 _A ! 1 T; I I 1 H II i II -; -r , 1 0 111111 11 i 1 1 1 i , 1 ca co a. g 1 1 I 1 i 1 ill 1 t 1 } . 1 . 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