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Home My WebLink About08.20.18 Council Packet Meeting Location: Farmington Farmington City Hall Minnesota 430 Third Street Farmington,MN 55024 CITY COUNCIL REGULAR MEETING AGENDA AUGUST 20, 2018 7:00 P.M. Action Taken 1. CALL TO ORDER 7:00 P.M. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA S. ANNOUNCEMENTS/COMMENDATIONS 6. CITIZEN COMMENTS/RESPONSES TO COMMENTS(This time is reserved for citizen comments regarding non-agenda items.No official action can be taken on these items. Speakers are limited to five minutes to address the city council during citizen comment time.) 7. CONSENT AGENDA a) Approve Minutes of the August 6, 2018 City Council Meeting— Administration Approved b) Approve Minutes of the August 13, 2018 City Council Work Session— Administrator Approved c) Approve 2019 Fire Relief Association Pension Increase—Administration Approved d) Appoint Acting Police Chief—Administration Appointed e) Acknowledge City Administrator Evaluation Summary Report and Approve Changes to City Administrator Employment Agreement - Attorney Acknowledged f) Approve Cooperative Fire Protection Agreement with the Minnesota Department of Natural Resources—Fire Approved g) Adopt a Resolution Declaring Surplus Property—Fire R32-18 h) Approve Extension of Vermillion River Crossings Third Addition Final Plat Submittal—Community Development Approved i) Appointment Recommendation Finance—Human Resources Approved j) Approve Purchasing Policy- Finance Approved k) Approve Bills - Finance Approved 1) Financial Review for Six Months Ended June 30, 2018 Information Received REGULAR AGENDA 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS a) Adopt Resolution Sapphire Lake Preliminary Plat R33-18 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) Separation Agreement Between the City of Farmington and Brian Lindquist Approved 13. CITY COUNCIL ROUNDTABLE 14. EXECUTIVE SESSION a) Closed Session to Discuss Labor Negotiations Postponed 15. ADJOURN f�� ARif City of Farmington i v_Itp� 430 Third Street � Farmington, Minnesota i 651.280.6800 - Fax 651.280.6899 ' .A011004' www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Approve Minutes of the August 6, 2018 City Council Meeting-Administration DATE: August 20, 2018 INTRODUCTION Attached for your review are the minutes of the August 6, 2018 city council meeting. DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED Approve the minutes of the August 6, 2018 city council meeting. ATTACHMENTS: Type Description © Backup Material August 6, 2018 City Council Minutes CITY OF FARMINGTON CITY COUNCIL MINUTES REGULAR MEETING AUGUST 6, 2018 1. Call to Order Mayor Larson called the meeting to order at 7:00 p.m. 2. Pledge of Allegiance Mayor Larson led those in attendance in the Pledge of Allegiance. 3. Roil Call Present-Larson, Bartholomay, Craig and Donnelly Absent-Bernhjelm Staff Present-Administrator McKnight, Human Resources Director Wendlandt and Attorney Jamnik. 4. Agenda Motion by Bartholomay, second by Craig,to approve the agenda as presented. APIF, motion carried. 5. Announcements/Commendations None 6. Citizen Comments a) Response to Mr. Carrol Westenberg 7. Consent Agenda Motion by Bartholomay, second by Donnelly, to approve the consent agenda: a) Approve Minutes of the July 18, 2018 City Council Meeting-Administration b) Acknowledge Second Quarter 2018 New Construction Report and Population Estimate- Community Development c) Adopt Resolution R30-2018 Approving a Gambling Event Permit for the Vermillion River Longbeards-Community Development August 6, 2018 Minutes - 1- d) Approve Agreement with Cal-Tex Electric, Inc. for Interior Emergency Lighting Improvements at the First Street Garage-Parks e) Approve Contract Fire Station #1 Apparatus Bay Service Door and Frames Replacement Project-parks f) Adopt Resolution R31-2018 Accepting a Donation from Happy Harry's Furniture to the Rambling River Center-Parks g) Approve Agreement with Dakota County Technical College for Fire Training-Fire h) Approve a Professional Services Contract with HKGi to Update Sidewalk Streetscape Elements in the Downtown and Vermillion River Crossings-Public Works i) Approve a Joint Powers Agreement with the Vermillion River Watershed Joint Powers Organization for a Grant to Complete a Study of Potential Surface Water Best Management Practices with the Westview Acres Reconstruction Project-Public Works j) Approve Seasonal Hiring-Human Resources k) Approve Bills-Finance APIF, motion carried. 8. Public Hearings None 9. Award of Contract None 10. Petitions, Requests and Communications None 11. Unfinished Business None 12. New Business a) 2018 Priorities Update City Administrator McKnight presented an update on the city council's 2018 priorities. Early in 2018 the city council established the following priorities: 1. Development-Encouraging the expansion of residential, commercial and industrial properties. 2. Partnerships-Forge opportunities with existing and new partners. 3. Financial-Continue to take the steps to make Farmington a city of fiscal excellence. 4. Service Delivery-Endeavor to provide core government services at high quality levels. August 6, 2018 Minutes -2- 5. Special Projects-The city council asked that a number of projects be completed in 2018. McKnight provided an update on some of the work that has been completed and is in progress in the following areas: Development • Support and approvals of the Regetta Fields development. • Working with developers on two new subdivisions. • Staff work with landowners and utility companies on potential projects. • The Farmington Business Park is now full for the first time ever. • EDA continues to implement facade redevelopment and site readiness grants. • City continues to support new businesses coming to Farmington with a number of examples recently including Dollar Tree and more. • Work to complete the 2040 Comprehensive Plan and distribute to our neighboring jurisdiction for review. The plan will determine the next phases of development in the city. Partnerships • 2018 legislative priorities developed and shared with our delegation. • City council direction and staff work has started on the Rambling River Center Plaza project that will include many opportunities for partnerships. This project is part of the recommendations of the downtown redevelopment plan. • The city council approved a feasibility study for two potential projects at Schmitz-Maki Arena that will involve partnership opportunities. • Reengaged the Intergovernmental Committee with the school district. • Working with Dakota County, the Dakota County CDA and nine other cities in the county on the Dakota Broadband Board. • Significant work has taken place over the past six months with Empire Township on both entities 2040 comp plans, Highway 3 related issues and future land use developments/street alignments. Financial • Staff reported on a positive end result of the 2017 budget. • The 2030 Financial Plan and all related capital improvement plans are being updated for presentation as a part of the 2019 budget process. • The city council has directed staff to restart mill and overlay street projects in 2019. These projects stopped occurring in 2009. With this decision, the three tiered approach of sealcoating, mill and overlay and street reconstruction to street maintenance will return in 2019. It will take some time to catch up on our street maintenance, but this decision was key. • The General Fund portion of the 2019 budget is substantially complete. August 6, 2018 Minutes -3 - Special Projects • Staff has been directed to significantly increase the communication of positive news and items of interest with our social media tools and with the media. Results have already been produced in this area. • City monument signs have all been cleaned and look great. Lighting of the monument sign on Pilot Knob Road has been completed. • Staff has proposed that a corridor study be performed on the Highway 3 area through the city that may include way finding signs. A funding application has been made to the CDA that will be determined soon. Councilmembers thanked McKnight for the update and were happy to see the progress occurring in the city. 13. City Council Roundtable Donnelly-Encouraged everyone to attend the fair and spend dollars in Farmington Craig-Welcomed the Rebel Chef restaurant to Farmington. Bartholomay-Reminded residents of the candidate filing period. McKnight-Shared that city hall will be closed on Friday, August 17, 2018 at noon due to some electric work that needs to occur in the building. Larson-Encouraged residents to shop local and the visit the fair. 14. Executive Session Motion by Bartholomay, second by Craig,to go into closed session as authorized under Minnesota State 13D.05 to perform the annual performance review of City Administrator McKnight. Present in the review were the city council, City Attorney Jamnik and Administrator McKnight. The closed session began at 7:15 p.m. Mayor Larson called the meeting back into open session at 8:18 p.m. Adjourn Motion by Bartholomay, second by Craig,to adjourn the meeting at 8:18 p.m. APIF, motion carried. Respectfully Submitted August 6, 2018 Minutes -4- 23 David McKnight, City Administrator August 6, 2018 Minutes -5- ,o�CAR�yr , City of Farmington I 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 A, ` www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Approve Minutes of the August 13, 2018 City Council Work Session-Administrator DATE: August 20, 2018 INTRODUCTION Attached for your review are the minutes of the August 13, 2018 city council work session. DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED Approve the minutes of the August 13, 2018 city council work session. ATTACHMENTS: Type Description a Backup Material August 13, 2018 Work Session Minutes CITY OF FARMINGTON CITY COUNCIL MINUTES WORK SESSION AUGUST 13, 2018 Acting Mayor Bernhjelm called the work session to order at 6:12 p.m. Roll Call Present-Bernhjelm, Craig and Donnelly Absent-Larson and Bartholomay Also Present-Administrator McKnight, Fire Chief Elvestad, Assistant Fire Chief Albee, Finance Director Malecha, Planning Manager Wippler, Public Works Director Gehler, Community Development Director Kienberger and Parks and Recreation Director Distad Agenda Motion by Craig, second by Donnelly, to approve the agenda. APIF, motion carried. 2019 Fire Relief Contribution Assistant Fire Chief/Relief Association President Albee discussed with the city council the 2019 pension contribution. Albee requested that the pension be increased from $6,500 per year to $7,500 effective January 1, 2019. Albee also requested increases in 2020 to $8,000 and 2021 to $8,500. Albee discussed with the city council the factors the Fire Relief Board considered in making these requests including: 1. Benefit of the pension in terms of member retention 2. Staying competitive with neighboring fire departments 3. The value of the consistent community support 4. The long term sustainability of the Fire Relief Association accounts Albee discussed the long term financial health of the association with the city council. Councilmember Craig asked about the fund balance goal of the relief. Albee stated the goal of the relief is 115% and his personal goal is 130%. August 13, 2018 Work Session Minutes - 1- Craig asked about known, upcoming retirements. Albee stated that he is only aware of one in the next few years who will be eligible. Acting Mayor Bernhjelm clarified that the city provides $150,000 to the relief each year. Administrator McKnight asked how the relief accounts for the 11 new members recently brought on to the department. Albee stated their liabilities have already been included in the draft numbers included in the material. Albee stated that the relief members are very grateful for the annual contribution made by the city. The city council was in support of the request to increase the annual pension amount from $6,500 to $7,500 effective January 1, 2019. Purchasing Policy Finance Director Malecha presented the revised Purchasing Policy for discussion. The city council discussed this draft policy at the July 2018 work session. Councilmember Craig clarified that the city council can change the amounts included in the policy in the future if they desire. Administrator McKnight stated that is always up to the city council. This item will be included on the August 20, 2018 city council agenda for consideration. Accessory Dwelling Unit Discussion Planning Manager Wippler brought back the issue of accessory dwelling units for city council discussion. The city council originally talked about this issue in February 2018 and requested staff to perform additional research and provide information on how these uses are being handled both on a national and regional level. An accessory dwelling unit is an additional living quarters on a single family lot that are independent of the primary dwelling unit. Many communities do not address this issue but it is becoming a growing trend throughout the nation. Wippler reviewed how this issue is handled in the following Communities: 1. Eagan, Minnesota 2. Minneapolis, Minnesota August 13, 2018 Work Session Minutes -2- 3. Burnsville, Minnesota 4. Eugene, Oregon 5. Fresno, California Wippler stated that there is no one-size fits all approach to this issue. Councilmember Craig thanked Wippler for the detailed information and asked how old the policies from the Minnesota cities are. Wippler stated less than five years old. Councilmember Donnelly stated that this is a complicated issue and asked if there is a trigger to move this issue forward. Staff reminded the city council that this issue was initially brought forward by a resident. Craig stated that she was not sure if now was the time to move this issue forward with all of the other priorities the city council has established. The city would also need some community input if this issue moves forward. Acting Mayor Bernhjelm agreed but wanted to keep the discussion going forward but the other priorities are more important. Donnelly agreed and thought it was a good idea to let other cities work out the details on this issue. 2019 Building Maintenance Projects Administrator McKnight reminded the city council that in 2017 a building maintenance study was completed on city facilities that recommended almost $10 million in maintenance projects over the next decade. During 2017 and 2018, city staff and contractors have completed a number of projects recommended in the study. The projects completed, or still to be completed in 2018, are all from the priority one section of the study. It looks like the city will have approximately$200,000 for building maintenance projects for 2019. McKnight asked city staff to make recommendations on projects for 2019 that were reviewed with the city council. McKnight reviewed the scheduled funding for building maintenance projects for 2020-2024. Councilmember Craig asked about the sidewalks at the Rambling River Center. Parks and Recreation Director Distad stated there are some safety issues with the sidewalk in the area. August 13, 2018 Work Session Minutes -3- Councilmember Donnelly asked about all of the exterior lighting projects. Distad stated those are recommendations from the building study and are safety related. Distad stated that staff will bid the projects as one and hope to realize savings. Acting Mayor Bernhjelm reminded staff to make decisions with the other potential construction projects in mind and bid items together whenever possible. Review 2019-2023 Capital Improvement Plan Administrator McKnight reviewed with the city council the draft 2019-2023 capital improvement plan (CIP). This draft is only the General Fund portion of the plan and it will be added to over the next few months to include water, sewer, storm water plans. The city council has reviewed this information in pieces over the past few months with the budget. Included in this draft of the plan are: 1. Park Improvement Fund 2. Equipment Replacement 3. Street Reconstruction 4. Trail Maintenance 5. Building Maintenance 6. Fire Equipment 7. Police Equipment McKnight review each of the plans with the city council. Councilmember Craig asked how new parks are worked into the park improvement plan. Parks and Recreation Director Distad shared the process the city uses to incorporate new parks into this plan. Distad also explained how park dedication and park dedication fees worked in Farmington. Acting Mayor Bernhjelm asked if the dollars coming in to the Park Improvement Fund from the liquor store in future years can be dedicated to other uses. Administrator McKnight stated that is up to the city council. Bernhjelm would like to discuss the future police department vehicle purchases to see if Tahoe's are the way we want to go. City Administrator Update August 13, 2018 Work Session Minutes -4- Team Building and Image Discussion Administrator McKnight brought up the issue of team building and the city image. Councilmembers thought some initial work by staff on this issue would be helpful and it might be best to wait until all councilmembers can participated in this process after the election. Other Items Administrator McKnight updated the city council on the following items: 1. City council candidate filings. 2. Meeting request with True Gravity Ventures. The city council directed staff that all city councilmembers wanted to be involved with a requested meeting by the developer. Adjourn Motion by Craig, second by Donnelly, to adjourn the meeting at 7:39 p.m. APIF, motion carried. Respectfully Submitted David McKnight, City Administrator August 13, 2018 Work Session Minutes -5- City of Farmington 430 Third Street I , Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 •4POO��° www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Approve 2019 Fire Relief Association Pension Increase-Administration DATE: August 20, 2018 INTRODUCTION The Farmington Fire Relief Association has requested an increase in the annual contribution amount effective January 1, 2019. DISCUSSION The Farmington Fire Relief Association met with the city council at the August 13, 2018 work session to request an increase in the annual contribution amount effective January 1, 2019. Fire Relief Association President Jeff Allbee presented the request along with the information on the financial health of the relief association. The Fire Relief is requesting that the annual contribution amount be increased from$6,500 per year currently in place to $7,500 per year effective January 1, 2019. The fire relief association currently has a fund balance of 143%. If the proposed change were to be approved, the fund balance would change to 129%. The fire relief association goal is to keep the fund balance above 115%. The city council discussed this issue at the August 13, 2018 work session. A number of questions were asked and discussion held about the goal of the fire relief to eventually get the annual amount to $10,000. BUDGET IMPACT The annual contribution that the city makes to the fire relief association of$150,000 is not impacted by this request. ACTION REQUESTED Ask any questions you may have on this issue. If the city council is comfortable, a motion should be made to increase the annual Farmington Fire Relief Association contribution amount from$6,500 to $7,500 effective January 1, 2019. aFAR,�i�� City of Farmington y 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 44,'A „OP, www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Appoint Acting Police Chief-Administration DATE: August 20, 2018 INTRODUCTION With the change in the police chief position included on the August 20, 2018 city council agenda, an acting police chief needs to be appointed. DISCUSSION Sergeant Gary Rutherford has been acting as the police chief August 1-15, 2018 in the absence of the police chief and has agreed to continue in that role again effective August 25, 2018 while decisions are made in regards to the future of this position. It is my recommendation that Sergeant Rutherford's wages be increased from$50.10 to $57.62 while he serves as the acting police chief Sergeant Rutherford's accrual of benefits, seniority, etc. with both the city and the LELS Sergeants Union will not change or be impacted in any negative manner. BUDGET IMPACT The proposed increase in wages will be paid for our of the 2019 Police Administration budget. ACTION REQUESTED A motion should be made to appoint Sergeant Gary Rutherford as acting police chief August 1-15, 2018 and August 25, 2018. to a date to be determined. The hourly wage of Sergeant Rutherford will be $57.62 while serving as the acting police chief 74i14, City of Farmington /i§(W4v 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 ' r.,,,� `•�, www.c i.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Joel Jamnik, City Attorney SUBJECT: Acknowledge City Administrator Evaluation Summary Report and Approve Changes to City Administrator Employment Agreement-Attorney DATE: August 20, 2018 INTRODUCTION Attached for your review is a summary of the city administrator annual performance evaluation that was conducted in a closed session on Monday,August 6, 2018. DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED Acknowledge the annual performance review summary of City Administrator David McKnight and approve the changes to the city administrator employment agreement. ATTACHMENTS: Type Description D Backup Material Review Summary r ck CAMPBELL KNUTSON PROFESSIONAL ASSOCIATION MEMORANDUM Thomas J.Campbell* TO: Mayor and City Councilmembers Roger N.Knutson David McKnight Elliott B.Knetsch Joel J.Jamnik FROM: Joel J. Jamnik,City Attorney Andrea McDowell Poehier Soren M.Mattick Henry A.Schaeffer,Ill DATE: August 20,2018 Alina Schwartz Shana N.Conklin RE: City Administrator Evaluation Summary Report and Changes to Amy B.Schutt James J.Monge,Ill Administrator Contract Jerome M. Porter David S.Kendall Matthew K.Brokl Kurt S.Fischer Pursuant to the State's Open Meeting Law,Minn. Stat. Section 13D.05, subd. 3(a), *Of Counsel the City Council conducted a closed meeting for approximately 60 minutes as part of its August 6u'Regular Council Meeting to evaluate the performance of City Administrator David McKnight. The Mayor,three City Councilmembers (Councilmember Bernhjelm was absent),Administrator McKnight and I attended the closed session. The law requires that,at its next open meeting, the public body shall summarize its conclusions regarding the evaluation. The following is submitted for Council review and approval as a summary of the evaluation conducted on August 6th. City Administrator McKnight's performance review was conducted in accordance with Section VIII of the Council's By-Laws relating to the annual Administrator Review,using a standardized evaluation form distributed,filled out and returned by each councilmember to our office prior to the evaluation meeting. As specified in the By-Laws our office tabulates the results of the evaluation without any reference to individual Councilmembers. At the meeting,the Council received a report from me regarding the Council evaluations. The Council evaluations indicated that overall Mr.McKnight was meeting or exceeding expectations of the Council in all evaluated categories (Leadership, Communication,Quality of Work,City Council/City Administrator Relationship, Organizational Culture,and Overall Rating). A majority of all ratings were in the Meets Expectations or Exceeds Expectations categories. Three Grand Oak Oillee Center I Councilmembers rated the City Council and City Administrator Relationship as no Bloc Gentian Road Exceeding Expectations. While two Councilmembers also rated Communication as Sulu 270 Exceeding Expectations and two rated it as Meeting Expectations,one Eagan,Minnrsota 55121 Main:65I. 52-5000 Councilmember rated Communication as Needs Improvement:that rating was the l'ax:65 I.23.4.6217 t98770v1 only Needs Improvement out of the 30 scores,and seemed to be based on the information provided to Council regarding a capital equipment purchase for the Police Department. Leadership and Organizational Culture issues received substantial discussion relating to recent personnel matters but Council commented that the ratings in this area were affected by continuing challenges of implementing organizational and staffing changes that Council has directed or fully supports and the Administrator is striving to implement. Administrator McKnight provided Council with a recap regarding his work activities over the past year and his efforts to meet established performance goals,discussed future performance goals,and discussed potential changes to the terms and conditions of his employment agreement. The Council and Administrator reaffirmed previously established goals or initiatives,which include meeting the communication and information needs of individual councilmembers, concentrating on budget and service delivery issues,and promoting economic development. It was noted that the Council fully supports further efforts of the Administrator to exercise strong leadership in achieving Council goals and continuing to improve the organizational culture and professionalism of city staff,as well as to engage in outreach activities throughout Dakota County and the region. Finally,changes to the Administrator's terms and conditions of employment were discussed. It was noted that Administrator McKnight has been and continues to be compensated notably less than other Dakota County Administrators or Managers,including compared to several with less experience in the profession and position. All four Councilmembers directed that the following compensation adjustment be presented for approval by the Council at its next regular meeting in conjunction with approval of this summary: adjust annual salary to$137,025.00. The change to compensation will be effective on the Administrator's Anniversary Date of August 29,2018,and documented by re-execution of an updated employment agreement reflecting the changes. ACTION REQUESTED Approve this summary of the performance evaluation,approve changes to compensation of Administrator McKnight,and authorize re-execution of Administrator contract consistent with the approved changes. Respectfully submitted, • Joel Jamnik 2 I98770vI MEMORANDUM CAMPBELL KNUTSON Professional Association TO: Mayor and City Councilmembers David McKnight • FROM: Andrea McDowell Poehler DATE: September 6,2016 RE: City Administrator Evaluation Summary Report and Changes to Administrator Contract BACKGROUND Pursuant to the State's Open Meeting Law,Minn. Stat. Section 13D.05,subd. 3,the City Council conducted a closed meeting for approximately 45 minutes as part of its August 15th Regular Council Meeting to evaluate the performance of City Administrator David McKnight. The Mayor and all City Councilmembeis,Administrator McKnight,Campbell Knutson attorney Amy Schutt and I attended. The law requires that, at its next open meeting, the public body shall summarize its conclusions regarding the evaluation. The following is submitted for council review and approval as a summary of the evaluation conducted on August 15th City Administrator McKnight's performance review was conducted in accordance with Section VIII of the Council's By-Laws relating to the annual Administrator Review,using a standardized evaluation form distributed, filled out and returned by each councilmember to our office prior to the evaluation meeting. As specified in the By-Laws our office tabulates the results of the evaluation without any reference to individual Councilmembers. EVALUATION • • At the meeting, City Administrator McKnight provided a summary of the projects he worked on over the past year, the Council reviewed the summary provided by our office, discussed the results, provided additional feedback to the Administrator, discussed performance goals, and • discussed changes to Mr. McKnight's terms and conditions of employment. The Council evaluations indicated that overall Mr. McKnight was meeting or exceeding expectations of the Council in all evaluated categories (Leadership, Communication, Quality of Work, City Council/City Administrator Relationship, Organizational Culture, and Overall Rating). Going forward,the Council encouraged the City Administrator to become more active outside of City Hall by engaging with the community and employees that do not office in City Hall,and to 1 188629 • continue working on improvements related to organizational matters. City Administrator McKnight agreed with the foregoing and indicated that his future goals also included: increasing his involvement with his peers,working on personal career development and increasing code enforcement within the City. Overall the Council indicated that the City was moving in the right direction under City Administrator McKnight's leadership and that they appreciated his professional'and calm management style and good communication skills with the City Council. CONTRACT CHANGES Changes to the Administrator's terms and conditions of employment were discussed.It was noted that Administrator McKnight is compensated less than several other Dakota County Administrators or Managers. The following adjustments were directed to be presented for approval by the Council at its next regular meeting in conjunction with approval of this summary. • Adjust annual salary from$120,380.00 to $123,991.40. • Increase the City's contribution to deferred compensation program from$4669.00 per year to$4,715.69 per year. Changes to compensation will be effective on the Administrator's Anniversary Date of August 29,2016,and documented by re-execution of an updated employment agreement reflecting the changes. ACTION REQUESTED Approve this summary of the performance evaluation,approve changes to compensation of Administrator McKnight,and authorize re-execution of Administrator contract consistent with the approved changes. • Respectfully submitted, Andrea McDowell Poehler 1 • 2 188629 MEMORANDUM CAMPBELL KNUTSON Pro(c::iooal A%:aei31ion TO: Mayor and City Councilmembers David McKnight FROM: Joel J.Jamnik DATE: August21,2017 RE: City Administrator Evaluation Summary Report and Changes to Administrator Contract 3ACKGROUND Pursuant to the State's Open Meeting Law,Minn. Stat. Section 13D.05,subd. 3,the City Council conducted a closed meeting for approximately 45 minutes as part of its August 7th Regular Council Meeting to evaluate the performance of City Administrator David McKnight. The Mayor and all City Councilmembers,Administrator McKnight and I attended. The law requires that,at its next open meeting,the public body shall summarize its conclusions regarding the evaluation. The following is submitted for council review and approval as a summary of the evaluation conducted on August 7th. City Administrator McKnight's performance review was conducted in accordance with Section VIII of the Council's By-Laws relating to the annual Administrator Review,using a standardized evaluation form distributed,filled out and returned by each councilmember to our office prior to the evaluation meeting. As specified in the By-Laws our office tabulates the results of the evaluation without any reference to individual Councilmembers. EVALUATION At the meeting,the Council received a report from Administrator McKnight regarding his work activities over the past year and his efforts to meet established performance goals,reviewed the summary of Councilmember evaluations provided by our office,discussed the results,provided additional feedback to the Administrator,discussed future performance goals,and discussed changes to Mr.McKnight's terms and conditions of employment. The Council evaluations indicated that overall Mr.McKnight was meeting or exceeding expectations of the Council in all evaluated categories(Leadership,Communication,Quality of Work,City Council/City Administrator Relationship,Organizational Culture,and Overall Rating). A majority of all ratings were in the Meets Expectations or Exceeds Expectations categories. Leadership and Organizational Culture ratings received substantial discussion relating to recent changes in hiring the city's first full time professional fire chief,department reorganizations,and 1 193828v1 recent employee retirements/resignations and hiring,but Council commented that the ratings in this area were affected by continuing challenges of implementing organizational and staffing changes that Council has directed or fully supports and the Administrator is striving to implement. Two areas of strength that were noted were Communication and the City Council/City Administrator Relationship,where the Administrator continues to exceed the expectations of a majority of the Council and fully meets the expectations of the other Councilmembers. There were no changes to previously established goals or initiatives,which include meeting the communication and information needs of individual councihnembers,concentrating on budget and service delivery issues,and promoting economic development. It was noted that the upcoming retirement of the City's Finance Director and other possible retirements or staff changes will require a continued emphasis on hiring qualified individuals,and that the Council fully supports further efforts of the Administrator to exercise strong leadership in achieving Council goals and continuing to improve the organizational culture and professionalism of city staff CONTRACT CHANGES Changes to the Administrator's terms and conditions of employment were discussed.It was noted that Administrator McKnight has been and continues to be compensated notably less than other Dakota County Administrators or Managers,several with less experience in the profession and position. The Council unanimously directed that the following compensation adjustment is to be presented for approval by the Council at its next regular meeting in conjunction with approval of this summary. Adjust annual salary to$130,500.00. The change to compensation will be effective on the Administrator's Anniversary Date of August 29,2017,and documented by re-execution of an updated employment agreement reflecting the changes. ACTION REQUESTED Approve this summary of the performance evaluation,approve changes to compensation of Administrator McKnight,and authorize re-execution of Administrator contract consistent with the approved changes. Respectfully submitted, Joel J.Jamnik 2 193828v1 EMPLOYMENT AGREEMENT AGREEMENT made this /(Aday of July, 2011, by and between the CITY O1' FARMINGTON, a Minnesota municipal corporation ("Employer"), and DAVID J. McKNIGHT("Employee"). The parties agree as follows: 1. POSITION. Employer agrees to employ Employee as its City Administrator. Employee agrees to serve as City Administrator in accordance with state statutes, City ordinances and the ICMA/MCMA Code of Ethics and to perform such other legally permissible and proper duties and functions as the City Council shall from time to time assign. 2. SALARY. Employer shall pay Employee a salary of$ 113,000 per year starting August 29, 2011. Employer and Employee agree that an initial performance review will be conducted on Employee after six (6) months and annually thereafter. The Employer agrees to • • consider an increase in compensation to the Employee after twelve (12)months of employment and annually thereafter,dependent upon the results of the performance evaluation. 3. PENSION PLAN. Employer shall contribute to PERA as required by State law for Employee or the same employer amount to an alternate pension plan, if selected by Employee,authorized by State law. 4. SENIORITY. For purposes of employment benefits such as sick leave,vacation leave, and the like,Employee will be credited with having completed two years of employment with the City upon his first day of employment. 5. PAID TIME OFF(PTO). Effective upon Employee's first day of employment, Employee shall be credited with nineteen(19)days of accrued leave.In addition,Employee shall 158502v03 1 JJJ:07/11/2011 accrue nineteen days of leave with a maximum total accumulation (cap) of three hundred and twenty (320),hours. When employee leaves employment, Employee shall be paid his accrued PTO leave up to the maximum total accumulation in accordance with City policies. 7. HOLIDAYS. Employer shall provide Employee the same holidays as enjoyed by other non-union employees. 8. GENERAL INSURANCE. Employer shall provide Employee the same group hospital,medical,dental,life and disability insurance benefits as provided to all other non-union employees. 9. DUES• AND SUBSCRIPTIONS. Employer shall budget and pay the professional dues and subscriptions for Employee which is deemed reasonable and necessary for Employee's continued participation in national, regional, state and local associations necessary and desirable for Employee's continued professional participation,growth and advancement. 10. PROFESSIONAL DEVELOPMENT. Employer shall budget and pay necessary and reasonable registration, travel and subsistence expenses of Employee for professional and official travel, meetings and occasions adequate to continue the professional development of Employee and to adequately pursue necessary official and other committees thereof which Employee serves as a member. Employee shall use good judgment in his outside activities so he will not neglect his primary duties to the Employer. Professional development dollars are subject to review by Council during the annual budget process. 11. CIVIC CLUB MEMBERSHIP. Employer recognizes the desirability of representation in and before local civic and other organizations. Employee is authorized to become a member of such civic clubs or organizations as deemed appropriate by Employee and Employer;and at Employer's expense. 158502v03 2 MOM l 12. AUTOMOBILE AND PHONE. Employer shall reimburse Employee for personal use of Employee's personal automobile in accordance with IRS established rates and policies and appropriate documentation. Employer will provide Employee with a city cellular phone or an allowance of$45 per month at the discretion of Employee. 13. GENERAL EXPENSES. Employer shall reimburse Employee reasonable miscellaneous job related expenses which it is anticipated Employee will incur from time to time when provided appropriate documentation. 14. HOURS OF WORK. It is understood that the position of City Administrator requires attendance at evening meetings and occasionally at weekend meetings.It is understood by Employee that additional compensation and compensatory time shall not be allowed for such additional expenditures of time.It is further understood that Employee may absent himself from the office to a reasonable extent in consideration of extraordinary time expenditures for evening and weekend meetings at other than normal working hours. • 15. TERMINATION BENEFITS. In the event that Employee is terminated by the Employer during such time that Employee is willing and able to perform the duties of City Administrator,then in that event,Employer agrees to pay Employee at the time of receipt of his last pay check a lump sum cash payment equal to six months aggregate salary and to continue to provide and pay for the benefits set forth in paragraph 8 for a period of six months following termination.However,in the event Employee is terminated because of his malfeasance in office, gross misconduct,conviction for a felony,or conviction for an illegal act involving personal gain to Employee,then Employer shall have no obligation to pay the termination benefits. If Employer at any time during the employment term reduces the salary or other financial benefits of Employee in a greater percentage than across-the-board reduction for all non-union • 158502,03 3 JJJ:07/1112011 employees, or if Employee resigns following a formal request by Employer through its counsel that he resign,then Employee may, at his option,be deemed to be "terminated" on the effective • date of Employee's resignation and the Employee shall also be entitled to receive the termination benefits set forth above. If Employee voluntarily resigns his position with Employer,Employee agrees to give the Employer thirty (30) days advance notice. If Employee voluntarily resigns his position with Employer,there shall be no termination pay due to Employee. 16. GENERAL CONDITIONS OF EMPLOYMENT. Nothing in this Agreement shall prevent,limit or otherwise interfere with the right of Employer to terminate the services of Employee at any time, for any reason, subject only to the provisions of this Agreement and ' statutory requirements.Furthermore,nothing in this Agreement shall prevent,limit or otherwise • interfere with the right of Employee to resign at any time from his position with Employer, subject only to the provisions of this Agreement. IN WITNESS WHEREOF, Employer has caused this Agreement to be signed and executed on its behalf by its Mayor. _.. _ and Employee has signed this Agreement,in duplicate,the day and year first written above. EMPLOYER: EMPLOYEE: CITY OF FARMINGTON BY: % a�� Todd Larson,Its Mayor id J.McKnight • 1 158502v03 4 JJJ:07/11/2011 r`01kRHrj City of Farmington ry ' 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 peal, www.c i.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Justin R. Elvestad, Fire Chief SUBJECT: Approve Cooperative Fire Protection Agreement with the Minnesota Department of Natural Resources-F ire DATE: August 20, 2018 INTRODUCTION Staff would like to renew the formal cooperative fire protection agreement with the Minnesota Department of Natural Resources. The previous agreement was last approved in 2010. DISCUSSION Approving the agreement allows the city to bill the Minnesota Department of Natural Resources for our services on wildland property. Billing rates will set by Minnesota DNR and are attached to the agreement for your review. The new agreement will be for a period of five years. BUDGET IMPACT This agreement will allow the city to recover costs associated with wildland fires that occur in our service territory. ACTION REQUESTED Authorize the renewal of the Cooperative Fire Protection Agreement between the Minnesota Department of Natural Resources and the City of Farmington. ATTACHMENTS: Type Description D Contract Cooperative Agreement NA-01966-06 4-8-2013 Minnesota Department of Natural Resources Division of Forestry and the Farmington Fire Department Cooperative Fire Protection Agreement Agreement Number: (18 341 19104) THIS COOPERATIVE FIRE PROTECTION AGREEMENT,is made and entered into by and between the State of Minnesota acting by and through the Commissioner of the Department of Natural Resources, hereinafter referred to as the"DNR"and the Farmington Fire Department,hereinafter referred to as the "Fire Department,"as authorized by M.S. 88.04 subd. 4; 88.11 subd. 1;and 89.01 subd. 4 I. PURPOSE The purpose of this Cooperative Fire Protection Agreement is to cooperate in the prevention and suppression of wildland fires as authorized under M.S. 88.04. Assistance will only be provided when requested,when resources are available, and can be committed without diminishing either party's ability to protect its own jurisdiction. II. STATEMENT OF MUTUAL BENEFITS AND INTERESTS The DNR, Division of Forestry, is responsible for the prevention and suppression of wildland fire within the state. The Fire Department is responsible to prevent and extinguish all unwanted fires within its fire protection area. It is mutually advantageous and in the public's interest for the parties to this instrument to coordinate and assist in each other's efforts in prevention,detection,and suppression of wildland fires and to cooperate in fire hazard reduction in and adjacent to areas of mutual responsibility. III. THE FIRE DEPARTMENT SHALL: 1. Provide fully staffed and equipped fire fighting resources,when available for wildland fire suppression, as listed on the attached rate schedule. 2. Indemnify,save and hold the State,its representatives and employees,harmless from any and all claims or causes of action,including all attorneys'fees incurred by the State,arising from the performance of this Agreement by the Fire Department or Fire Department's employees,agents or subcontractors. This clause shall not be construed to bar any legal remedies the Fire Department may have for the State's failure to fulfill its obligations pursuant to this Agreement. 3. Assume full responsibility,including legally required insurance and Workers' Compensation for all Fire Department personnel provided under this agreement. 4. Respond to all calls for wildland fires within the Fire Department's fire protection area when requested by the DNR. 5. Respond to additional wildland fire calls outside the Fire Department's fire protection area at the request of the DNR and at the discretion of the Fire Chief. 6. Submit a report to the DNR within 24 hours of any wildland fire on which the Fire Department takes independent action. Reporting can be in the form a DNR Fire Report Card,fax,e-mail,fire report form, DNR wildland fire invoice form,or other written communication that provides the same information as the Fire Report Card. Fire Department Cooperative Agreement NA-01966-06 4-8-2013 7. Submit an invoice to the DNR within 30 days of an incident for which the fire department is requesting reimbursement. Invoices beyond 30 days may not be honored if the fire was not reported timely to the DNR. 8. Stay with all wildland fires until out,or released by a DNR incident commander,or until called to another incident within the Fire Department's protection area,provided the wildland fire is considered safely contained. 9. Be committed to protection of lives and buildings as its first consideration. 10.Through the Fire Department officers,determine its capabilities and assume final decision authority on commitment of its vehicles and personnel into any area of operation that is requested by DNR personnel. 11.Furnish all tools,equipment,supplies,fuels,and lubricants, except for those items furnished by the DNR,as stated in this Agreement. 12. Assist the DNR with distribution of fire prevention materials and wildland fire prevention presentations. 13.Bill the DNR for wildland fire runs at the agreed upon rate per run. When additional resources are requested by DNR Forestry,beyond the first 2 hours(the "run")hourly rates for specific requested equipment,as described in the attached Rate Schedule,will apply. Invoices must be submitted within thirty(30)days of the fire(s). IV. THE DNR SHALL: 1. Respond with specialized equipment for wildfire response,when possible,at the request of the Fire Chief or designate. This equipment includes,but is not limited to dozers,all terrain tracked vehicles, engines and aircraft. 2. Investigate violations of the burning laws of the State. (M.S. 88.01 to 88.22 and 88.75) This includes billing the responsible party for all wildland fire suppression costs of the DNR,and the Fire Department if the DNR pays the Fire Department for responding to the fire. 3. Assist the Fire Department in obtaining Federal Excess Property, specialized equipment,or grants for improving their firefighting capabilities. 4. Assist the Fire Department with procuring and distributing fire prevention materials. 5. Provide wildland fire suppression training to the Fire Department as workload permits. 6. Reimburse the Fire Department for wildland fire runs,according to the terms of this agreement. 7. Make reasonable effort to release the Fire Department as soon as possible to ensure that the Fire Department is available for other emergency response calls. V. REIMBURSEMENT POLICIES: 1. Lower rates may be negotiated for extended use at the Fire Department's discretion. 2. When the Fire Department is dispatched through its normal dispatch procedures,and not specifically requested by the DNR,the Fire Department shall only bill for a Wildland fire run. (A Wildland Fire Run is described as the fire department's response to a wildland fire that takes up to two (2)hours to suppress) 3. For hourly billing of equipment required for fire suppression or requested by DNR Forestry, after the wildland fire run(first 2 hours),time will be rounded to the nearest half hour. Billable time should begin when the Fire Department leaves its station and continue until it returns to its station. Time spent refurbishing and readying equipment for the next call shall not be included as billable time. 4. The fire chief and local DNR forester may discuss charges that are in question prior to submitting a final Fire Department Cooperative Agreement NA-01966-06 4-8-2013 invoice for payment. 5. If the Fire Department is released by the DNR before the Fire Department has taken any suppression action on the fire,the Fire Department shall not submit a bill for the run. 6. Attached rates shall be reviewed annually and may be changed with signature of the parties to this Agreement,or their successors in position. This Agreement is effective on the date of the last signature and is to continue in force for five(5)years or until terminated by either party giving thirty(30)days written notice to the other. Both parties should review this Agreement annually. Fire Department: /s/ C1456---r Date: Title: State of Minnesota Department of Natural Resources: /sl L_ v��.. � Date: -Z 7— / ea Forester Fire Department Cooperative Agreement NA-01966-06 4-8-2013 Fire Department Cooperative Agreement Rate Schedule ITEM DESCRIPTION NUMBER WORK RATE *STANDBY RATE OF PERSONNEL a. rate b.per unit a.rate* b. unit (include NWCG type,make,model,year,serial,,umber and pry (includes (hour,etc.) (hour,etc.) special featums,such as 4X4,CAForfoam proportioners) EQUIPMENT personnel) a.Type 1 Engine,2001 Pierce Lance,CAPS 4 $275.00 Hour $137.50 Hour VIN:4PICTO2E51AD01158(Engine 1) b.Type 1 Engine,1993 Spartan CiA42L-2142 4 $275.00 Hour $137.50 Hour V1N:4S7AT9LO7PC010186(Engine 2) c.Type 1 Engine,2013 Pierce Impel,CAPS 4 $275.00 Hour $137.50 Hour VIN:4PC1C301A7DA013434 (Engine 22) d.Type 6 Engine,2014 Dodge,foam 4 $125.00 Hour $62.50 Hour VIM:3C7WRNELOEG327424 (Rescue 1) e.Type 6 Engine,2016 Dodge,foam 4 $125.00 Hour $62.50 Hour SN:3C7WRNEL3GG285205(Rescue 2) t:Type 6 Engine,1997 Ford 2 $125.00 Hour $62.50 Hour VIN:I FTHF36O7VEC11732(Brush 1) g.Type I Tender,2005 Peterbilt 2 $160.00 Hour $62.50 Hour VIN:2NPNLD9X65M849119(Tender 1) i• Per hour same as Per hour Each $15.00 per work rate per Additional Requested firefighters firefighter firefighte *Standby rates shall be equal to %2 of the work rate,and shall apply only if equipment and personnel are ordered by the DNR to be staged and available for immediate action. Special Rates: a. Run charge of$350.00 per Run,for up to 2 hour response. After two hours,equipment or personnel requested by the DNR will be charged at the rates in the above Rate Schedule. The above rates have been agreed upon by: Far m rs'15/-011 Fire Department DNR Area Is! /1 "-erg, Date: -Z? ea Forester /s/ ✓�"� Date: t1 r� -�3 - ' • ire Chief /s! Date: Regional Forest Manager (if required) Fire Department Cooperative Agreement NA-01966-06 4-8-2013 4)2013 Suggested Equipment Standards and Hou4y Rates for Fire Departments That have an agreement with the Division of FeresstryMNIDNR After the&sttwo hour iatehas expired,needed equipment'Alba placed on anhourly sate_ Equipment standard and sates incladepersaanel;Sul"all befimishedby the Fite Deparhnent. The tate m1t be reduced by 10%,for Engines and Water Tenders older than 25yeata. gatdan a kfrq 1000 500 150 50 so 60 le , t• - 150 150 250 100 140 100 100 �� 300 300 500 750 400 250 50 .1601• ,1ii •k 1200 1000 ; i ..ffr _s: 500 600 1000 3n0 340 .149 Yti 600 300 300 300 200 . F•1 i.=,c;:___`qtr tC�a.'F�c'S4: 4 3 3 2 2 2 2 pm dlii�l?a®i j6i�air:lff2Fblp dlptleo I4�ict' iR P Este ritategiairliiidak R�e1rr T -Rn[ Wael' _ `- ��.,:__--. 4000 2600 1000 2000 1000 hdic` *: -t: 300 290 200 250 250 a. titre AM',= a= - so 50 60 150 150 ' 464 :R = ---_ 30 20 15 - - - Pp L'4 * . ^ 1 1 1 �2 2 mit #tR. °•r ". 0 $160 $110 $230 $190 ;Portable Pump Acceptable with tenders s Water tenders came with foldingtmla Additional Firefighters use a rate of f1.5.00lhr Fire Department Cooperative Agreement R NA-01966-06 4-8-2013 v+linimnmRequirements for Personnel Responding to Incidents on National Forest System Lands ARfuefigbtingpersonnel are required to wearand utilim the following Personal Protective Equipment Nom=shirt andpaods,had hat,leather gloves,8 inch boots with a lugged sole and an approved fire shelter. All personnel will be required to meet NWCG traialog n quiremeats for a wildlandffinfgbter,and attend an annual wi7dlandre&eher. Fire Chiefs will ensure Departments meet training requirements and are swimmable for the upkeep ofDepartment personnel training records.Physical fitness levels are established by each agency. Departments will meet their own physical fitness standards. When responding to Federal Lands Engines and Water tenders will need to meet the NWCG component standards and are recommended to meet NWCG stocking standards (appendix M). Appendix M is located at http://www.nifc.eov/YOBLICATIONShedbook/2013/AppendixMudf Other Resources - Non Vehicle Items used for support missions will be based on a daily rate r7::-...--7,- --:--:-i-:,-2::, p t ��, Mr i ` -3 1 2 baseden - Uteiabeeluutsfawn `rtr,":,,, _,,t,.. .i - based ea tank sen! ?d }3i.L L -< . - I tS9lbr+ ■ 31-50seh$511kr fi laid. vl_ 2 I 0109Fda (i T, 4 P: ; : ¢5�t -e [` ,c•--- -T Y u )moi. 2 negotiated ■ Cr .I. G3 -1-1"..1:11.6 tined enske s r 1 s76A0a7+ 14'47�day :4,-,-----_, 1i-17'41001drj i � y "a ;-1 1114= v ,c ; �y O 0200Ma7 .d tat s'' -,: 1:� y 1 *based assize f l ; -* `4 , . 0 "3Jda* 1000.2000=$76/d a7 r s `t` . _ 20110 Rates for non-vehicle equipmequipment(such as boats,ATV's and folding tanks,etc.) vlIIbe based on a daily ate. Boats capable of tactical missions(pump and roll capabilities)am an exception and will be based on=hourly rale. Tracked ueirictesshould use arateforcapacitiesbasedonEsmetype. • Fire Department Cooperative Agreement o ikRip , City of Farmington ry 430 Third Street ac Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 '41..4 N„W- www.c i.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Justin Elvestad, Fire Chief SUBJECT: Adopt a Resolution Declaring Surplus Property—Fire DATE: August 20, 2018 INTRODUCTION Farmington Fire Department staff recommends declaring surplus property in the department. DISCUSSION Chad Thelen retired from the fire department in May 2018 and has requested to purchase his former firefighter helmet.A check for the cost of a new helmet has been received by staff. Pursuant to city policy, the helmet must be declared as surplus property before it can be purchased. BUDGET IMPACT The old helmet will be purchased for the cost of a new replacement helmet. The adopted policy is budget neutral to the city. ACTION REQUESTED Adopt the resolution declaring one firefighting helmet as surplus property in the Farmington Fire Department. ATTACHMENTS: Type Description D Resolution Resolution RESOLUTION NO. R 32-18 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 20th day of August 2018 at 7:00 p.m. Members Present: Larson, Bartholomay, Bernhj elm, Craig, Donnelly Members Absent: None Member Bartholomay and Member Bernhj elm introduced and seconded the following: WHEREAS,the Mayor and City Council of the City of Farmington have previously adopted a policy for the purchase of firefighting helmets by retired/resigned firefighters; and WHEREAS, Firefighter Chad Thelen retired on May 8, 2018; NOW THEREFORE BE IT RESOLVED that, after due consideration, the Mayor and City Council of the city of Farmington, Minnesota, hereby declare his Black, 2009 Bullard UST Firefighting Helmet as surplus property and authorize the City Administrator or his designee to arrange for the sale and replacement of said equipment. This resolution was adopted by recorded vote of the Farmington City Council in open session on the 20th day of August 2018. Todd Larson, Mayor Attested to the '/ day of August 2018. 6)1'4"• `")6/ David McKnigh , city-Administrator SEAL 7-,010/46, City of Farmington 4s. 1116, 430 Third Street ?Zs Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 .A0www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Tony Wippler, Planning Manager SUBJECT: Approve Extension of Vermillion River Crossings Third Addition Final Plat Submittal-Community Development DATE: August 20, 2018 INTRODUCTION Hy-Vee, Inc. is requesting city council approval of an extension for the submittal of a final plat for the Vermillion River Crossings Third Addition. DISCUSSION The preliminary plat for Vermillion River Crossings Third Addition was approved on September 19, 2016. The preliminary plat consists of 18.923 acres of land and is divided into two lots and two outlots. The two lots would consist of a proposed Hy-Vee grocery store and convenience store. The outlots are future development sites. Per Section 11-2-2(D) of the city code, a final plat must be submitted within one year after said approval of the preliminary plat by the city council. The city council approved a one year extension to this requirement at the regular meeting on September 18, 2017. The extension ends on September 19, 2018. Hy-Vee, Inc. has submitted a request(see attached) for an additional extension of the final platting of Vermillion River Crossings Third Addition. Staff is suggesting a 12-month extension. BUDGET IMPACT NA ACTION REQUESTED Approve the requested extension for the final platting of Vermillion River Crossings Third Addition to September 19, 2019. ATTACHMENTS: Type Description ® Backup Material Extension request From: Hoey, Phil<PHoev@hv-vee.com> Sent: Monday,August 06, 2018 2:40 PM To:Adam Kienberger<AKienberger@farmingtonmn.gov> Subject:Approvals expiring Adam, we respectfully request that extend our approvals for the convenience store and food store at out location on CR 50 and Dushane Parkway. We request this extension because at this time we are not prepared to begin construction. However,we remain very optimistic about this location and the community of Farmington and intend to build a Hy-Vee and serve your residents. Thank you Phil Phil Hoey I Director, Real Estate Hy-Vee, Inc. I phoev@hy-vee.com I Phone 507.645.2382 CONFIDENTIALITY NOTICE: The information contained in this e-mail message is legally privileged and confidential information intended only for the use of the addressee(s). The information contained in this transmission is the property of the sender. If you are not the addressee, you are hereby notified that any disclosure,distribution,copying,or the taking of any action in reliance on the contents of the transmitted information is prohibited, If you have received this e-mail message in error,please immediately notify the sender by reply or telephone and destroy the transmission. A failure to do so may result in legal action to retrieve this proprietary information. 1 • 0 =tikRiit, City of Farmington (� � 430 Third Street ;' Farmington, Minnesota \v.. 651.280.6800 - Fax 651.280.6899 010:0141) www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Brenda Wendlandt, Human Resources Director SUBJECT: Appointment Recommendation Finance-Human Resources DATE: August 20, 2018 INTRODUCTION The recruitment and selection process for the appointment of the Administrative Support Technician/Receptionist position has been completed. DISCUSSION After a thorough review by the Finance Director and the Human Resources Office, a contingent offer of employment has been made to Kalea Fischer, subject to the completion of the background investigation and ratification by the city council. Ms. Fischer previously worked for Aitkin County Planning and Zoning and her experience meets the qualifications for this position. BUDGET IMPACT Ms. Fischer's hourly rate will be$19.55 which is step 3 of the salary range for this position(salary range: $18.61-$23.27). Funding for this position is authorized in the 2018 budget. ACTION REQUESTED Approve the appointment of Kalea Fischer effective on or about August 21, 2018. o�AR�rf City of Farmington '� p 430 Third Street ' Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Teah Malecha, Finance Director SUBJECT: Approve Purchasing Policy-Finance DATE: August 20, 2018 INTRODUCTION The city currently operates under Minnesota Statutes and the adopted budget for any purchases. DISCUSSION A purchasing policy has been developed to define purchasing guidelines for staff as established by Minnesota Statutes and to create strong internal controls. The city council discussed this policy at the past two work sessions and was in support of the current draft being brought to the city council for consideration. BUDGET IMPACT N/A ACTION REQUESTED Approve the attached purchasing policy. ATTACHMENTS: Type Description ID Backup Material Purchasing Policy City of Farmington, Minnesota Purchasing Policy Purpose The purpose of this policy it to establish specific guidelines governing the purchase of goods and services by employees of the City of Farmington.The use of public funds requires diligent scrutiny and careful regulation.The controls are necessary in two areas. First,the statutory law,which clearly details procedures for the purchase of goods and services by city employees. Second,the controls not required by statute, but that are important to a good system of internal control and a sound management program. This policy will outline the laws governing contracts and bids and describe the basis for a good internal control system.These purchasing procedures are intended to provide a consistent manner of purchasing goods and services. Following the law and the city's purchasing policy should assist city officials in obtaining the maximum benefit from public funds expended. Contracting and Purchasing A city entering into an agreement for the sale or purchase of supplies, materials, equipment or the rental thereof, or the construction, alteration, repair or maintenance of real or person property must abide by the statutes relating to contracting and bidding. Minnesota Statute 471.345 was established to provide dollar limits for all cities upon contract which shall or may be entered into on the basis of competitive bids,quotations or purchase or sale in the open market.This statute puts the following basic requirements on cities(based on the estimated contract amount): 1. For amounts over$175,000—sealed bids shall be solicited by public notice in the manner and subject to the particular requirements of the city. 2. For amounts from$25,000 to$175,000—seals bids or by direct negotiation, by obtaining two or more quotations for the purchase or sale when possible, and without advertising for bids or otherwise complying with the requirements of competitive bidding. 3. For amounts under$25,000—the contract may be made upon quotation or at the open market, at the discretion of the city. If the contract is made upon quotation it shall be based, so far as practical, on at least two quotations. On all purchases that require obtaining bids or quotes,the"State Bids"obtained through the state's cooperative purchasing program and the prices obtained through the U.S. General Services Administration (GSA)are considered to have met this requirement. All bids,quotations, RFP's, specifications, contracts, and supporting documents shall be retained in accordance to the city's data retention policy. When sealed bids are not required or used, and whenever it is reasonably practical and cost efficient, purchases will be made from Farmington businesses. Professional service contracts, such as those provided by engineers, lawyers, architects, accountants, and other services requiring technical, scientific, or other professional training do not require competitive bidding. The provisions noted in this policy are not intended to be an exhaustive list of Minnesota bid laws. In the event that this policy is not consistent with Minnesota law, such law will govern. For purchases made under federal or state grant funded programs, additional restrictions are identified within the uniform grant guidance regulations(2 CFR 200.318). Internal Controls The primary basis for the city's system of internal control is the city's annual budget.The budget, as adopted by the city council, serves as the basis for the city's spending for that year.The appropriate level of responsible official must approve any expenditure over budget.Also,any expenditure that would utilize money budgeted from one area of a department budget for another purpose must be communicated by that department head to the city administrator for his/her verbal approval. In addition, all invoices presented for payment must be approved by the appropriate department head or supervisor and reviewed for reasonableness and proper account coding by such department head in a timely manner.The Finance Department must be notified immediately for any reason that may result in withholding payment. In order to expedite payments to vendors in a timely fashion, Minnesota Statute 412.271 allows the city council to delegate its authority to pay certain claims made against the city to a city administrative official.A list of all claims paid under the procedures established by the city council shall be presented to the city council for review at the next regularly scheduled meeting after payment of the claim.The city council, by resolution, has delegated this authority to the city administrator or the finance director. The following approvals shall be required for expenditures dependent on the amount of the purchase: 1. For amounts over$50,000, approval is required by the city administrator and the city council before the purchases are made, except as listed in item 2. 2. For amounts over$50,000 that fall into any of the following categories:the payment of judgments, salaries and wages previously fixed by the city council or by statute, principle and interest on obligations, rent and other fixed charges,the exact amount of which has been previously determined by contract authorized by the city council, approval is required by the city administrator. 3. For amounts from$15,000-$50,000, approval by the department head and city administrator is required. 4. For amounts under$15,000, approval by the department head is required. For situations where immediate approval is required and cannot be delayed until the subsequent city council meeting, the city administrator has the authority to approve the expenditure.The city administrator will contact the city council as soon as feasibly possible regarding the expenditure and approval. Prohibited Interest in Contracts Minnesota Statutes 471.87 and 417.88 prohibit entering into any contract for goods or services in which an employee, officer or agent, or their immediate family members, has an indirect or direct personal financial interest or will personally benefit financially from the contract or purchase. In exceptional cases and if permitted by applicable law or regulation,this policy may be waived by the city administrator for good cause after consulting with the city attorney. Employees shall not make any purchases for personal use utilizing city funds. Employees shall not be allowed to take advantage of special pricing offered to the city by vendors to make personal purchases. Employees may not take advantage of government discounts for non-business related purchases.The general rule to be applied is if a discount is not available to a member of the public,the employee should not take advantage of it. Acceptance of Gifts Minnesota Statute 471.895 prohibits local officials from requesting, soliciting, or accepting a gift from any person or representative of a person or association that has a direct financial interest in a decision that the employee is authorized to make. Local official includes elected and appointed positions within the city. Procedure The city administrator is the chief purchasing officer of the city and has delegated purchasing and budgetary control to each department.The department head may designate other staff within their department to purchase goods and services in compliance with the annual budget.The city council has delegated authority to staff to make purchases as approved in the annual budget in compliance with all bidding requirements and the city's purchasing policy. The use of credit cards is an authorized payment method.These purchases must follow the purchasing policy and are a more efficient method of paying vendors than the check payment process. In certain cases,where professional services were specifically identified in the budget and it is an ongoing contract, the city council does not need to approve each year's contract. The city purchases yearly memberships at various wholesale warehouses, e.g. Sam's Club,for purchases of supplies,food, equipment, etc. Due to the manner in which these businesses issue memberships, employees with city issued membership cards are granted access and purchasing rights by these wholesale businesses for both business and personal uses. However, given membership cards are purchased with the city's public funds, employees are not entitled to purchase personal items with these purchased membership cards. Minnesota Statute 12.37 authorizes the city to declare an emergency situation for a limited period of time. During such an emergency,the city is not required to use the typical mandated procedures for purchasing and contracts. Emergency purchases require approval by the city administrator,finance director, and when necessary because of the amount,formal city council action.An emergency purchase is defined as one where an immediate response is required to protect the health,welfare, or safety of the public or public property. Authority for Implementation and Enforcement All employees are responsible for adhering to this policy when purchasing goods or services. Department heads are responsible for monitoring performance within their departments. Responsibility for administering established purchasing policies has been delegated to the Finance Department. o�FwR,�i City of Farmington ,+ p 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 "',.A PROOF', www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Teah Malecha, Finance Director SUBJECT: Approve Bills-Finance DATE: August 20, 2018 INTRODUCTION Attached is the August 2 - 15, 2018 city council check register and recently processed automatic payments for your consideration. DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED Approve the attached payments. 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CO co ca Q Y a. co W 'o C),7 N Cr M ).0 0 a) Chi co .1} N Cr co co CO Ca p C) V O CrV 'd' aa.- ct Ca a) LY Z 0 O O O N /4-4i1N,,► City of Farmington 430 Third Street ; Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 T.A ARCO' www.c i.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Tony Wippler, Planning Manager SUBJECT: Sapphire Lake Preliminary Plat DATE: August 20, 2018 INTRODUCTION Winkler Land Co., LLC is seeking approval of the Sapphire Lake Preliminary Plat. The plat consists of 131 single-family lots on 69.59 acres. Planning Division Review Applicant: Winkler Land Co., LLC 10519 165th Street W Lakeville, MN 55044 Attachments: 1. Preliminary plat 2. Memo from Parks and Recreation Director 3. Engineering comment memo 4. Preliminary plat resolution Area Bounded By: Prairie Waterway and single-family residential to the west, cultivated farmland to the north, east and south. Existing Zoning: The property is bisected by wetland and floodplain. The majority of the property is zoned R-2 (Low /Medium Density Residential). The southeast corner of the property is zoned R-3 (Medium Density Residential). Comprehensive Plan: The majority of the property is guided Low Medium Density Residential with the southeast corner of the property being guided for Medium Density Residential. Existing Conditions: The property is currently being used for agriculture. The property is relatively flat with floodplain and wetland bisecting the property. There are parts of five wetlands on site. A full Wetland Conservation Act permit and approval will be required prior to final plat. DISCUSSION Land Use The developer proposes to construct 131 single-family lots on the property. The lot sizes range from 6,820 square feet to 14,508 square feet. The lots will have a front yard setback of 20 feet(25 feet used on sidewalk side) and side yard setbacks of six feet. There are 9 outlots proposed with the preliminary plat totaling 33.07 acres. The breakdown of the outlots are as follows: Outlots A, B, and C: 11.79 acres - stromwater facilities Outlot E: 5.97 acres -future development area Outlot F: 4.79 acres -open space/park Outlot D: 10.21 acres - open space/park/floodplain and wetland Outlots G, H, and I - 0.31 acres -remnant land/parts of future residential lots Transportation The preliminary plat shows the extension of 213th Street W and Spruce Street east into the northern and southern portions of the property, respectively. 213th Street crosses the Prairie Waterway and then transitions to a north/south alignment and connects into Spruce Street. 213th Street is proposed at a 60- foot right-of-way with a roadway width of 32 feet from face of curb to face of curb. Spruce Street will also be extended across the Prairie Waterway and will move traffic from the southwest corner of the property to the northeast corner of the property where it will eventually connect into Biscayne Avenue. Spruce Street is proposed at a 70-foot right-of-way with a roadway width of 38 feet from face of curb to face of curb. Street A will run east to west near the northern portion of the property and will provide connections to both 213th Street and Spruce Street. Street A is proposed at a 60-foot right-of-way with a roadway width of 32 feet from face of curb to face of curb. Right-of-way for the future Biscayne Avenue is being platted with this development. Biscayne Avenue is not being proposed for construction with the Sapphire Lake plat. The right-of-way for Biscayne Avenue is shown as 75 feet. Parks, Trails and Sidewalks Randy Distad, Parks and Recreation Director, has submitted comments which are attached. The developer is showing parkland for a neighborhood park in the northeast corner of the development totaling 0.886 acres. Additionally, Outlot F (4.511 acres)will be deeded over to the city for park purposes. The developer is proposing sidewalk on the north side of Spruce street, west side of 213th Street, and on the north side of Street A. An 8-foot bituminous trail is proposed to to run along the greenway that bisects the development. Parks and Recreation Director Distad provided the following items that need to be revised prior to final plat submission: • The sidewalk on 213th Street W should be relocated to the east side of the street in order to eliminate the double frontage of the lots on the west side of 213th Street with sidewalk in front of the lot and a trail directly in back of the lot. The developer has requested that the sidewalk be allowed to remain on the west side of 213th Street as it aligns with the existing trail to the west and removes the need for two street crossings if kept in its current location. Additionally there is frontage on the west side of 213th Street with Outlot C where the sidewalk would not be impacted by driveways. The Planning Commission was agreeable to this. • The greenway trail south of the Spruce Street and 210th Street W intersection should be realigned, so it lines up directly across from the relocated sidewalk on the east side of 213th Street W. • Show the location of a future trail to be constructed across the floodplain and wetland by others that connects to the future park area located southeast of the residential development. Engineering The Engineering Department has recommended approval of the Sapphire Lake Preliminary Plat subject to Engineering comments as outlined in the comment letter dated August 14, 2018. Landscape The landscape plan as shown on page Ll of the preliminary plat submission is generally acceptable to staff. Lot frontage trees are being provided in accordance with city code. The plans do show 4 red oak trees being planted on the Peterson property near the southwest corner of the property. These 4 trees can be removed from the plan. Planning Commission Review The Planning Commission reviewed the preliminary plat at the August 15, 2018 regular meeting and held a public hearing concerning the application. The Planning Commission recommended approval of the preliminary plat, with contingencies, with a vote of 3-0. BUDGET IMPACT NA ACTION REQUESTED Adopt the attached resolution approving the preliminary plat of Sapphire Lake contingent upon the following: 1. The Preliminary Plat is contingent upon meeting the requirements stipulated in the Parks & Recreation Director Randy Distad's letter dated August 3, 2018, with the exception that the sidewalk can remain on the west side of 213th Street. 2. Engineering comments as outlined in the comment letter dated August 14, 2018. 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DISCUSSION The PRC had representatives from Winkler Land Company, LLC (the Developer) at two different meetings to review the park land dedication requirements and the location of the park,trail and sidewalks in the development. The following recommendations were made by the PRC to the Developer at a special meeting on May 2, 2018: • relocate the sidewalk on 213th Street West to the other side of the street so there isn't double frontage of the lots located on the west side of 213t Street West and leave all other the remaining sidewalk locations as shown on the preliminary plat • the location of the trail along the greenway as proposed by the Developer was acceptable • show a short trail connection across the floodplain and wetland area to connect to additional park land to the southeast of the development • accept parkland in the northeast corner of the development as a neighborhood park • dedicate the remaining parkland that is required for the development in the southeast area of the development that abuts the floodplain and wetland area RECOMMENDATION: Staff has completed a review of the revised preliminary plat submitted by the developer. The following items show on the preliminary plat meets the recommendations made by the PRC: • the parkland dedication requirement calculated by the Developer is correct • the location of the small neighborhood park shown by the Developer in the northeast corner of the preliminary plat is in the correct location • The trail location shown along the greenway aligns with the trail plan identified for this area of the city `' • The additional parkland shown in the southeast area of the preliminary plat shown as Outlot F is the correct location The following items do not meet the PRC's recommendations and will need to be revised on the preliminary plat: • the sidewalk on 213t Street West should be relocated to the other side of the street in order to eliminate the double frontage of the lots on the west side of 213th Street with a sidewalk in front of the lot and a trail directly in back of the lot • the greenway trail south of the Spruce Street and 213th Street West intersection should be realigned, so it lines up directly across from the relocated sidewalk on the east side of 213th Street West • show on the plat the location of a future trail to be constructed across the floodplain and wetland by others that connects to the future park area located southeast of the residential development Respectfully Submitted, Randy Distad Parks and Recreation Director cc: Park and Recreation Commission Members • ':"...:i. 04':'•:IS::::' ''. \,....:\ i`i,,D'>*.,:•:::;::.:1:•%Nt.. *::X•r*tc\t'• .%.% %r� r C WimW'.:„.•w ;", ' 5• '•}r'ti • 4`�`Z .,44.x%::: ,, , \::•:•4:.\.,.,:;•N!...,: ::: 0 . ''...';''.! •.:•;`;%:",,,7 .. 1.,•:„),"1".N.....// '.,.--,....-, vier."'''',.. '.'"N \kir :.•.•*•;;,:`•::- 'N.::.•.#.1. ',16...". 0 .„ ''.7- , //‹.? Z1 j'''' \'::, \ .',,4;S:11:* ..'•'' Vx x:::,.4:0 it. W / ~ 1)/" 4 ```off' •,\ •'.• '.:�•'..4,ti'i+;: n, ,, N I "„ .' l f,''`fin i/,,••. , i `�4.`y'*.:,,,`5y14 j •4` .--'''••. oeso: '',/<\ :::\'1....,\ .\. .\ T` i ,.a� /.� ,,.." fid•( `,,„,,,c.,:,,,,”,rni ,?•';;; `4iau�.o City of Farmington , .;, = 430 Third Street Farmington, Minnesota 4s 651.280.6800•Fax 651.280.6899 w .A R00+6 www.ci.farmington.mn.us TO: Tony Wippler, Planning Manager FROM: Matt Decur, Assistant City Engineer SUBJECT: Preliminary Plat Comments— Sapphire Lake DATE: August 14, 2018 I have reviewed the preliminary plat for Sapphire Lake submitted by Winkler Land Development and have the following comments: • Trail located in Spruce Street and Biscayne Ave R/W shall not be included in 10' trail corridor dedicated as park land • Prairie Waterways delineation and full WCA approvals required before final plat • Final sizes and locations of all street, stormwater management, storm sewer, sanitary sewer and watermain facilities will be reviewed with final plat and final construction plans • Schedule and funding of sewer, watermain, and street improvements in the Biscayne Avenue corridor will be reviewed with the final plat and construction plans RESOLUTION NO. R33-1 8 APPROVING PRELIMINARY PLAT SAPPHIRE LAKE Pursuant to due call and notice thereof, a regular meeting of the City Council of the city of Farmington, Minnesota, was held in the Council Chambers of said city on the 20th day of August, 2018 at 7:00 P.M. Members Present: Larson, Bartholomay, Bernhj elm, Craig, Donnelly Members Absent: None Member Bartholomay and Member Bernhj elm introduced and_seconded the following: WHEREAS, the preliminary plat of Sapphire Lake is now before the Council for review and approval; and WHEREAS, a public hearing of the Planning Commission was held on the 15th day of August, 2018, after notice of the same was published in the official newspaper of the city and proper notice sent to surrounding property owners; and WHEREAS, the Planning Commission reviewed and recommended City Council approval of the preliminary plat at its meeting held on the 15th day of August, 2018; and WHEREAS,the City Council reviewed the preliminary plat on August 20, 2018; WHEREAS, the City Engineer has rendered an opinion that the proposed plat can be feasibly served by municipal service. NOW, THEREFORE, BE IT RESOLVED that the preliminary plat for Sapphire Lake be approved with the following conditions: 1. The Preliminary Plat is contingent upon meeting the requirements stipulated in the Parks & Recreation Director Randy Distad's letter dated August 3, 2018, with the exception that the sidewalk can remain on the west side of 213th Street. 2. Engineering comments outlined in the comment letter dated August 14, 2018. This resolution adopted by recorded vote of the Farmington City Council in open session on the 20th day of August, 2018. Mayor Attest to the,?/ day of August, 2018. (.30,__ • 4.1 City Administr or SEAL 74"0/4,, City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 44t.4.so,' www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Separation Agreement Between the City of Farmington and Brian Lindquist DATE: August 20, 2018 INTRODUCTION The City of Farmington and Police Chief Brian Lindquist have negotiated a separation agreement effective Friday, August 24, 2018. DISCUSSION A separation agreement has been negotiated between the City of Farmington and Police Chief Brian Lindquist. The city desires new leadership in the department moving forward into the future. The terms of the separation agreement include: 1. Lindquist will resign his position effective August 24, 2018. 2. Payment of$69,770 will be paid out in bi-weekly installments until paid in full; or until Lindquist requests to have the remaining balance paid in full within 30 days of said request. 3. Payment of$56,000 will be made after the expiration of all rescission periods. 4. Up to 12 months of paid COBRA benefits for medical and dental insurance plans in effect on the date of separation at the level of coverage then in effect. If Lindquist obtains employment with medical and dental insurance, the city contribution will end. 5. Lindquist releases all of employees claims against the employer that he now has, whether or not he knows about them. The release shall not affect any claims that could me made under Minnesota Workers Compensation Act and any rights Lindquist may have to defense and indemnification pursuant to state statute, city policy or any applicable insurance policy relating to third-party claims against the employee. A copy of the separation agreement is attached for your review. BUDGET IMPACT The payment of$69,770 will be taken from the Police Administration budget until paid in full. The payment of$56,000 will be taken from the compensated absences fund. The payment of COBRA benefits will be taken from the Police Administration budget until paid in full. ACTION REQUESTED Ask any questions you may have on this topic. Once the city council is comfortable, a motion should be made to approve the separation agreement between the City of Farmington and Brian Lindquist effective August 24, 2018. ATTACHMENTS: Type Description © Executive Summary Separation Agreement SEPARATION AGREEMENT This Separation Agreement and Full Release of Claims is made by and between the City of Farmington (hereafter "City" or "Employer") and Brian Lindquist (hereafter "Employee" or "Lindquist"). RECITALS 1. Lindquist has been employed by the Employer since 1998 and since 2006 has held the position of Chief of Police. 2. Lindquist's last day with the City was August 24, 2018. 3. The parties wish to resolve all potential issues, differences and claims whether potential or actual through this Agreement in the interest of avoiding any potential litigation and administrative proceeding costs and expenses which may arise out of Lindquist's employment with the Employer or the cessation and separation of his employment with the Employer. AGREEMENT 1. Resignation from Employment. Lindquist shall resign from employment with the Employer effective August 24, 2018, except as otherwise provided in this Agreement, all benefits and privileges end as of that date. 2. Consideration. In full settlement of all claims and potential claims, as set forth in the Release and Waiver of All Claims provision of this Agreement, arising out of and related to Lindquist's employment and separation from employment, the Employer shall pay and Lindquist shall accept the following payments: a. A sum of$125,770 to be paid in installments, as follows: I. $69,770 to be paid out in bi-weekly installments until paid in full; or until Lindquist requests to have the remaining balance paid in full within 30 days of said; and II. $56,000 to be tendered after the expiration of all rescission periods. d. Health and Dental Insurance. Twelve months of paid COBRA benefits for medical and dental insurance plans in effect on the date of separation at the level of coverage then in effect. If Lindquist obtains subsequent employment with health and dental insurance, the city contribution will end Said payments will be made directly to the group insurance carrier. c. Statement by the City - Page 1 of 6 The City of Farmington and Police Chief Brian Lindquist have reached a separation agreement effective August 24, 2018. The City is grateful for the Chiefs years of service and dedication to the City of Farmington. The City Council desires new leadership in the department to move the department into the future. The City Council will consider this agreement at their August 20, 2018 meeting. Lindquist agrees the Employer does not owe him anything in addition to these payments. The payments shall be subject to state and federal withholding and the payment of social security and Medicare taxes by both the Employer and Lindquist. These payments shall be made after the expiration of the rescission period as outlined in the Release and Waiver of All Claims provision of this Agreement. 3. Release and Waiver of All Claims. a. Definitions. All words used in this Release and Waiver of All Claims are intended to have their plain meaning in ordinary English. Specific terms used in this release have the following meanings: 1. "Employer" as used in this Release and Waiver of All Claims, will at all times mean the City of Farmington and the present and former Council members, employees, agents, counsel, assigns, insurers, predecessors, or successors of any of them, in both their individual and official capacities. 2. "Lindquist" as used in this Release and Waiver of All Claims, means Brian Lindquist, or anyone who has or obtains any legal rights or claims through him, including without limitation, assigns, successors, representatives, executors, and heirs. 3. "Employee's Claims" as used in this Release and Waiver of All Claims, means any rights Lindquist has now or hereinafter to any relief of any kind from the Employer whether or not Lindquist knows now about those rights, arising out of or related to his employment with the Employer and his separation from employment including, without limitation, the following: (a) Claims for breach of contract, fraud or misrepresentation, deceit, assault and battery,defamation,all forms of unlawful discrimination and/or harassment, negligence, intentional or negligent infliction of emotional distress, mental anguish, humiliation, embarrassment, pain and suffering, reprisal, unfair labor practices, breach of the covenant of good faith and fair dealing, promissory estoppel, negligence or other breach of duty, wrongful termination of employment,retaliation, breach of public policy, vicarious liability, invasion of privacy, interference with contractual or business relationships, reprisal; and Page 2 of 6 (b) Claims for violation of the Constitution of the United States, the Constitution of the State of Minnesota, the Americans with Disabilities Act ("ADA"), the Rehabilitation Act of 1973, the ADA Amendments Act ("ADAA"), the Federal Fair Employment Practices Act, Title VII of the federal Civil Rights Act of 1964 as amended, the federal Age Discrimination in Employment Act ("ADEA"),the Equal Pay Act("EPA"),the Lilly Ledbetter Fair Pay Act of 2009, the Fair Labor Standards Act ("FLSA"), the Family and Medical Leave Act ("FMLA"), Section 1983 claims, the Minnesota Human Rights Act, the Minnesota Veterans Preference Act,the Workers' Compensation Wrongful Discharge statute,Minn. Stat. § 176.82, Minnesota Whistleblower statute, Minn. Stat. § 181.932, or other federal, state or local civil rights laws prohibiting discrimination, and any other claims for unlawful employment practices; and (c) Claims for alleged injuries or damages or compensation for bodily injury, personal injury, wage loss benefits, reinstatement, medical expenses, emotional distress, fines, penalties, exemplary and punitive damages, attorney's fees, costs and expenses, interest, and claims of injunctive relief. b. Lindquist's Agreement to Release Claims Against the Employer. In exchange for the promises of the Employer contained in this Agreement and the payments of the Employer and other valuable consideration as set forth in paragraph 2 a.-d. of this Agreement, Lindquist releases all of Employee's Claims against the Employer that he now has, whether or not he knows about them. Lindquist agrees that the Employer does not owe him anything in addition to the promises of the Employer contained in this Agreement. Lindquist will not bring any lawsuits, commence any proceeding relating to any claim, file any charges or complaints or make any other demands against the Employer based upon Employee's Claims except as permitted by law, and if the law permits Lindquist to commence such a proceeding, Lindquist agrees that he may not seek or recover any monetary damages or other relief as a result of any such proceeding. Lindquist fully and completely releases, waives, and forever discharges and promises not to sue, or make any other demands against the Employer related to any and all manner of claims, demands, actions, causes of action, administrative claims, promises, agreements, contracts, rights, liability, damages, claims for attorneys' fees, costs, and disbursements, or demands of any kind, including but not limited to, all claims arising in tort or contract, or any other federal, state, and local laws, statutes, ordinances, regulations or orders or any other claims in any manner relating to Lindquist's employment with and separation from the Employer arising in law or equity, whether known, suspected, or unknown, and however originating or existing which Lindquist now has, or which Lindquist at any time Page 3 of 6 heretofore had or had a claim to have,against the Employer to the date of execution of this Release. If in the future Lindquist asserts any claim released herein, such claim shall be dismissed with prejudice,and reasonable costs and attorneys' fees shall be awarded to the Employer in the amount determined by a court of competent jurisdiction. This Release shall not affect any claims that could be made under the Minnesota Worker's Compensation Act, Minn. Stat. 176." This Release shall not affect any rights the Employee may have to defense and indemnification pursuant to state stature, city policy, or any applicable insurance policy relating to third-party claims against the Employee. c. Consideration Period. Lindquist understands that he has twenty-one (21) calendar days from the date he receives the Agreement, not counting the day upon which he receives it, to consider whether or not he wishes to sign the document and release his claims as set forth above. Lindquist agrees that changes to the Agreement, whether material or immaterial, will not restart the twenty-one (21) calendar day acceptance period. Lindquist acknowledges that if he signs the Release before the end of the twenty-one (21) day period, it is because he has decided that he has already had sufficient time to decide whether to release all of his claims. d. Right to Rescind. Lindquist has the right to rescind (cancel) this Agreement only insofar as it extends to potential claims under the Age Discrimination in Employment Act by informing the Employer of his intent to revoke this Agreement within seven (7) calendar days following Lindquist's execution of it. Lindquist likewise has the right to rescind (cancel) this Agreement only insofar as it extends to potential claims under the Minnesota Human Rights Act by written notice to the Employer within fifteen (15) calendar days following Lindquist's execution of this Agreement. To be effective, any such rescission must be in writing and hand-delivered to the Employer or, if sent by mail, it must be (1) postmarked within the fifteen (15) calendar day period; (2) properly addressed to Brenda Wendlandt, Human Resources Director, City of Farmington, 430 Third Street, Farmington, MN 55024; and (3) sent by certified mail, return receipt requested. It is understood that the Employer shall have no obligation whatsoever under the Agreement in the event of such rescission by Lindquist, and the Agreement shall not become effective or enforceable until this rescission period has expired. Lindquist agrees that if he exercises any right of rescission, the Employer may at its option either nullify this Agreement in its entirety or keep it in effect as to all claims not rescinded in accordance with the rescission provisions of this Agreement. In the event the Employer opts to nullify the entire Agreement,neither Lindquist nor the Employer will have any rights or obligations whatsoever under this Agreement, with the exception that Lindquist will be obligated to repay the Page 4 of 6 Employer for any amounts paid by the Employer pursuant to this Agreement. Any rescission, however, does not affect Lindquist's separation from employment. 4. TAXABILITY OF SETTLEMENT a. Of the sums set out in paragraph B herein, the sum of$69,770, set out in Paragraph B(1)(a)(1) will be subject to withholding of state and federal taxes and any Social Security and Medicare contributions, if appropriate; the balance of $56,000, attributable to non-wage claims, and set out in Paragraph B(1)(a)(2) herein will be reported on a Misc. Form 1099 (Box 3)with no withholding,provided Lindquist agrees to provide the City with: i. A completed Form W-9, Request for Taxpayer Identification Number and Certification; and, b. The City makes no representation as to the taxability of the amounts paid to Lindquist and reported on Misc. Form 1099. Lindquist agrees to pay all federal or state taxes, if any, which are required by law to be paid by Lindquist with respect to payments reported on Misc. Form 1099. Moreover, Lindquist agrees to indemnify the City and hold it harmless from any interest, takes or penalties assessed against it by any governmental agency as a result of the non-payment of taxes on any payment reported on Misc. Form 1099. 4. Entire Agreement. This Agreement contains the entire agreement between the parties. The parties agree that there were no inducements or representations leading to the execution of this Agreement between the parties other than those contained in this Agreement. 5. Non-Admission. Nothing in this Agreement is intended to be, nor will it be deemed to be, an admission of liability by the Employer that it has violated any contract, policy, state, federal or local statute or ordinance, administrative regulation or principle of common law, or that it has engaged in any wrongdoing whatsoever. 6. Voluntary and Knowing Action. Lindquist represents and agrees that (a) he has had the opportunity to be represented by his legal counsel; (b)he has read this Agreement and fully understands the terms and conditions contained herein; (c) he relies solely upon his own judgment regarding the proper, complete and agreed upon consideration for, and language of,this Agreement;(d)he has not been influenced to sign this Agreement by any statements or representations of the Employer or agents or attorneys not contained in this Agreement; and (e)he enters into this Agreement knowingly and voluntarily. 7. Governing Law. This Agreement will be construed and interpreted in accordance with the laws of the State of Minnesota. 8. Counterparts. This Agreement may be signed simultaneously in two or more counterparts, each of which will be deemed an original,but all of which together will constitute one and the same instrument. Page 5 of 6 Dated: Brian Lindquist Subscribed and sworn to before me this day of , 2018. Notary Public CITY OF FARMINGTON Dated: Page 6 of 6 7,AiARg& City of Farmington r Y 430 Third Street Farmington, Minnesota 651.280.6800 - Fax 651.280.6899 11/4„ 651.280.6800 www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Teah Malecha, Finance Director SUBJECT: Financial Review for Six Months Ended June 30, 2018 DATE: August 20, 2018 INTRODUCTION Staff reviews the financial performance of the General Fund and several other funds with the city council quarterly. The financial statements are included in your packet and incorporate more detailed analytical comments. The following provides a more in depth review of the General Fund and highlights notable areas for the other funds included in this review. DISCUSSION General Fund The General Fund is the city's primary operating account. The financial summary for the first six months is the first attachment. The following will provide explanations for the various revenue items and highlight the more significant expenditure variations. The items reviewed are in the order they appear on the attached General Fund financial statement. Revenues For 2018 budgeted General Fund revenues total$11,434,637. During the first half of the year the city recorded General Fund revenues totaling$5,613,470 or 49% of total budgeted revenues. This is consistent with the prior years. Property taxes represent 75% of total General Fund revenues (including transfers in from other funds). Property taxes are generally payable in two installments, May and October, and collected by the county. The city receives its share from the county in June and December. The first portion of property taxes has been received showing revenues at 52% of the annual budgeted amount. We have also received the first half of the LGA. While there are many reasons the city needs a fund balance (which is similar to an individual's personal net worth), needing to pay its bills between the receipt of tax payments from the county is the most significant reason. As you will note on the attached General Fund fund balance chart, the city struggled to have funds in its General Fund to pay for operations. In the past, the city has had to borrow from other funds to pay its bills. Over the past few years the city has strengthened its fund balance and is now able to pay all of its General Fund bills between the receipt of tax payments, essentially paychecks, from the county without borrowing from other funds That is a significant accomplishment and an important step in becoming a city of fiscal excellence. The other types of revenues in the General Fund consist of licenses, permits, intergovernmental revenue, charge for services, fines, investment income, franchise fees, rental income, etc. Among others, license revenue, includes liquor and animal licenses. The first half of the revenues for 2018 are ahead of budget which is typical for the beginning of the year. P ermit revenue includes building, plumbing, and heating, electric, etc. permits.The revenue for the first half of 2018 is slightly lower than the same time period last year. The city has issued 73 fewer building permits than in 2017. Intergovernmental revenue includes local government aid (LGA), municipal state aid (MS A)maintenance, police and fire aid, etc. The city received the first half of its MSA maintenance funds in February. The second half will be received during the third quarter. LGA is paid in two installments, June and December. Police and fire aid are paid in the fall. So, these revenues have not yet been received. This is another reason the city needs a strong fund balance as many of these items are paid later in the year. Charge for services includes fire, recreation, school resource officer(SRO), etc., charges. Castle Rock and Eureka townships are billed quarterly for fire protection. Empire, the largest of the three townships, is billed annually, after year-end, per contract. Non-contract(i.e. illegal and/or hazardous) fires charges are billed as they occur. Recreation programs are primarily offered in the summer. The school is billed for their share of the school resource officers human resource costs on a quarterly basis. First half of the revenues for these items are lower than last year. Fine revenue is received the following month. It is currently trending higher than in 2017. Investment interest consists of investment earnings and the city's annual mark-to-market to recognize the change in the market value of its investment portfolio. Miscellaneous revenues include rental income related to the Rambling River Center(RRC-senior center) and city hall as well as donations. Franchise fee revenue in the General Fund represents the transfer of a portion of the city's franchise fee revenue to the General Fund to help pay for city operations. The remainder of the franchise fees are used to pay for the city's cable operations. The first installment was received in the second quarter. Expenditures Finance tracks expenditures by department. The following notes explain significant or unusual variations from last year or actual versus budgeted amounts which vary quite a bit from the expected 50% (e.g. 6 of 12 months) through.the end of June in the same order as they appear on the attached General Fund financial report. City hall has an increase of roughly$8,000 over 2017 due to the USDA build-out project. The part-time building inspector changed to a full-time building inspector after the 2017 budget was adopted. As a result, building inspection expenditures are higher for 2018. The city experienced more snowfall in the first quarter of 2018, than in 2017. As a result the 2018 snow removal expenditures are higher this year than last. Natural resources is much lower than last year due to the position being vacant until April 2018. The expenditures for the pool are higher due to the demolition. Overall, General Fund expenditures, excluding transfers, are at 45% of budget for the first half of the year, which is equal to 2017. RRC, Pool, EDA, Park Improvement and Arena The Rambling River Center(RRC-senior center), EDA(Economic Development Authority), Park Improvement Fund and Ice Arena activities have historically been of interest to council. They are also included for your review. Rambling River Center(RRC) Rambling River Center revenues are higher than a year ago due to an increase in membership. Members have utilized the federal CDBG (Community Development Block Grant) funds at a lower rate than a year ago. These funds are attributable to the RRC activity, but are recorded elsewhere so finance can more easily track federal dollars. Pool The pool is permanently closed. There costs incurred were for the demolish of the pool. EDA The EDA revenues included the receipt of funds related to a CDBG grant for a building roof completed. The payment for the roof was made at the end of 2017. Disbursements included the pass-through of CDBG funds and the city's annual Open to Business membership fee. Park Improvement Fund The Park Improvement fund received the park development fees for Regetta in the second quarter. Arena Revenues are lower than in 2017 due to lower rental income. Expenditures are trending higher, but still at 51% for the first half of the year. Liquor Operations The city has two financial benchmarks for its liquor operations. The first is a 25% gross profit margin. For the first half of the year both stores exceeded the gross profit margin target. The second standard is a 6% profit as a percent of sales. This is evahiated on a combined basis. For the first half, the stores reached 6.7%. The 2018 results are slightly behind last year's pace, which was 6.9% through the first half. For 2017, the stores exceeded the profit as a percent of sales total. The liquor stores are on track to meet that benchmark once again this year. After each calendar year, staff reviews the financial results for the two liquor stores combined, determines the amount of funds needed to cover day-to-day operations and administrative transfers to the General Fund. The remaining funds are divided evenly and transferred into the Community Investment and Capital Improvements accounts. This is referred to as the four pots philosophy. Each year staff utilizes actual financial results to fund these four pots. Staff periodically makes recommendations to council on how to best invest available dollars in the Community Investment pot to benefit the community. Meanwhile, the capital improvement dollars are available for future liquor store capital building needs (e.g. remodeling, updating, relocation, possible building, etc.). Enterprise Funds The city operates five utility funds: sewer operations, solid waste, storm water, water, and street light. Staff is working to develop a comprehensive asset management plan, which will define replacements needs, and in turn update the long-term financial plans for this fund, as well as the other utility funds. Staff will then review these plans with council to determine the extent to which rate adjustments are needed. Sewer Operations For the first half of 2018 revenues were profitable enough to cover operating expenses even though revenue trended lower than 2017. Over the years, the increase in MCES (Metropolitan Council Environmental Services) fees have outpaced city fee increases until 2018. These are the fees charged to the city to treat its sewer water. The fees reflect an increase in the cost to treat the volumes processed. The fees have increased roughly$490,000 over the course of 10 years. Solid Waste For the first half of 2018 solid waste expenses exceeded revenues. There were increased expenses during the first half of 2018 due to the timing related to the purchase of additional garbage carts and increased recycling charges. The fund balance is being used to offset the increase in tipping fees per the 2018 budget. Storm Water Revenues exceeded expenses during the second quarter of 2018, but not overall for the first half of the year. The street sweeper was purchased accounting for roughly$184,000 of the expenses. For all of the city's utility funds, the billing cycle (revenue) lags the recording of expenses. For example, the city bills every three months. The January billing includes November and December of the previous year, as well as January of the current year. So, two-thirds of that billing cycle is attributable to the prior year and is recorded as such in the financial statements. This means that at the end of this year, the financial statements will remain open so that we can capture the revenues related to the current year, which will not be billed out until January and February of the following year. Additional comments, which may be of interest to you, including those for the water and street light funds are contained in the comment section of the attached financial statements. BUDGET IMPACT The budget impacts have been noted.above as appropriate. ACTION REQUESTED This is your opportunity to ask any questions you may have of the material presented. ATTACHMENTS: Type Description D Backup Material General Fund-Six Months Ended June 30, 2018 D Backup Material General Fund Chart June 30, 2018 D Backup Material Other Funds - Six Months Ended June 30, 2018 D Backup Material Liquor- Six Months Ended June 30, 2018 D Backup Material Utilities - Six Months Ended June 30, 2018 General Fund June 2018 YTD Operating Report June YTD Quarter 1 Quarter 2 June YTD December YTD June YTD Actual June YTD Y713 Act as Company Actual Actual Actual Actual Budget Budget Variance Comments 2017 2016 2018 2018 2016 2018 X of Bud 2018 RevenuesProperty Taxes 4,732918 0 4,933,306 4,933,306 9,467,815 (4,534,509) 52%First portion of property taxes received during 2nd quarter.Delinquent taxes are more than double the amount received in 2017. Licenses 30,243 18,010 9,785 27,795 48,700 (20,905) 57%Includes liquor,beer&wine,club arcade,massage,gambling,animal,etc.Lower than last year-3 liquor licenses were paid up front in 2017. Permits 231,766 93,397 114,777 208,173 361,711 (153,538) 58%Includes building,plumbing and heating,electric,etc.permits.Fewer building permits have been issued in 2018(233)compared to 2017(306).Plumbing and heating permits that have been issued in 2018(212)compared to 2017(217). Intergovernmental Rev 132,789 122,891 5,532 128,423 886,636 (758,213) 14%Includes Local Government Aid(LGA),Municipal State Aid(MSA)Maintenance, Police and Fire Aid,etc.Received 1st half of MSA for road maintenance(2nd half will be in July).LGA is paid in two installments,July and December.Police and Fire Aid not received until the fall. Charge for Service 196,330 82,798 96,436 179,234 440,000 (260,7661 41%Includes fire,recreation and pool,school resource officer,etc.charges.Castle Rock and Eureka are billed quarterly for fire charges/contract Empire,largest amount,billed annually,after year-end/contract.Non-contract(i.e.illegal, hazardous)fire charges are billed as they occur.Recreation programs primarily held in the summer.School resource officer is billed quarterly.Received payments from Eureka and Castle Rock first half fire charges and SRO first half payments. Higher police and fire charges in 2017 than 2018. Fines 20,111 12.303 15,235 27,538 35,000 (7,482) 79%2018 revenues higher then anticipated.In 2017,the revenues were declining. investment Interest 14.717 15,475 11,476 26,950 31,000 (4,050) 87%Intestrnent earnings attributable to General Fund's proportionate share of investment balances. Miscellaneous 25,894 12,655 10,539 23,194 193,775 (170,581) 12%Includes Sr Center,City Hafi rental income,and donations.Budget number reflects $150,000 additional revenue that is being used to offset the debt levy as approved by Council.Received donations for Music and Movie in the Park.The pool is dosed pemtanenty. Franchise Fees 60,285 0 58,856 58,856 120,000 (61,144) 49%A portion of the city's franchise fee is used to pay for the city's General Fund operations.The remainder is used to pay for the city's cable operation.Generally, the first payment is not received until the 2nd quarter. Subtotal Revenues 9,445,053 357,520 5,255,941 8,613.470 11,584,837 (5,971,167) 40% Expenditures Legislative 30,592 13,564 14,830 28,394 89,379 (60,9851 32% Historical Preservation 0 0 00 0 0 Administration 122,844 60,952 61,195 122,147 366,550 (244,403) 33% Elections 3,867 791 2,611 3,402 35,021 (32,419) 9%Provision for annual election equipment maintenance fee and ongoing training. Communications 54,643 34,549 21,062 55,612 109,341 (53,729) 51% City Hell 85,250 43,986 49,370 93,356 224,395 (131,039) 42%Higher costs than 2017 due to USDA build-out. Finance and Risk Mgmt 361,011 158,440 186,950 345,390 732,495 (387,105) 47% Human Resource 134,507 73,048 74.435 147,483 330,031 (183,348) 45% Police Administration 388,564 215,174 181,062 396,235 850,566 (454,331) 47%On a combined basis Police Admin,Patrol&Invest are 40% Patrol Services 1,349,154 692,618 679.510 1,372,128 2,750,258 (1.378,130) 50%On a combined basis Police Admin,Patrol&Invest are 40% Investigations 343,593 146,681 173,186 319,847 843,859 (524,012) 38%On a combined basis Police Admin,Patrol&Invest are 40% Emergency Managemen 109 54 54 108 6,650 (6,542) 2% Fire 447,196 180,485 195,346 375,831 1,188,352 (812,521) 32% Rescue 0 00 0 0 0 Engineering 218,236 137,766 147,927 285,693 568,573 (282,880) 50%Higher wages in 2018 than 2017 due to Assistant Engineer position being filled at the end of 2017. Planning 196,085 94,903 124,868 219,770 433,575 (213.805) 51%Includes comp plan expenditures. Building Inspection 171,965 101,895 90,236 192,130 367,852 (175,722) 52%Increased Logis costs in 2018. Natural Resources 49,636 6,308 6,545 12,853 138,901 (124,048) 9%Position was vacant until April. Streets 483,614 231,911 237,851 469,762 1,085,798 (616,036) 43% Snow Removal 92,734 108,521 69.172 177.693 227,377 (49,684) 78%More snow in 2018 than 2017.As a result,sand,salt,vechile parts and staff time were higher than a year ago.More sod repair in 2018. Pak Maintenance 286,145 137,351 174,861 312,212 653,873 (341,681) 48% Rambling River Center 76,030 40,164 37,048 77,212 177,225 (100,013) 44% Pak a Rec Admin 106,145 61,843 57.673 119.516 284.004 (144,488) 45% Recreation Programs 40,915 5,429 37,201 42,710 112,861 (70,151) 38% Swimming Pool 49,195 1,362 56,529 57,891 74,733 (16,842) 77%Pool Closed in 2018.Cost of demo. Interest Paid 0 0 0 0 0 0 Bad Debt Expense 0 00 0 0 Subtotal Expenditures 5,002.023 2,547,773 2,679,801 5,227,374 11,631,289 (8,403,895) 45% Revenues(Over)Under Ex 353,024 (2.190,2441 2,578,340 386,086 (46,6321 432.720 4128% Other Financing Transfers hi 575,175 299,094 299,094 590,188 1,196,376 (598,188) 50% Transfers Out (472,110) (249,936) (249,936) (499,872) (969,744) 499,872 50% Subtotal Other Financin 103,065 40,156 49,158 98,318 196,632 (98,316) 80% Net Change In Fund Behan 458,089 12.141,086) 2,625,408 464.412 150,000 334,412 323% n x w ■ ■ • • 0. 0 N w `o U ■ ■ 43 N .. > d X ■ ■ • • O m Z :q N N W `o • U of .■ Q ,e- • ■ ■ I • • w W 1 111111Mill O• c ' ■ ■ } a� 1 11� �._ c m ,, li Q R L.L. -` ��mu as 0 w a) ti 4— MI ■ .l La c 1111111111111.1111111111111111.111T .� 03 co ® ■ • - V 'c.', ■ ■ - ■ ■ • • CU 1 1 L ■ ■ • • N ULo — N ■ ■ ii ,1.0 O LC) O LO O 1.0 O LO I` CO CO d- V' COCO N N (1'1- 69 i}69 U, E!} Cf). Ef} (f} Efl Efl U, Ef} U, K)- U, aauele8 punct u! a6ueq RRC,Pool,EDA,Park Improvement,Arena June 2018 YTD Operating Report June YTD Quarter 1 Quarter 2 June YTD December June YTD June YTD YTD Company Actual Actual Actual Actual YTD Budget Actual Budget Act as%of Comment 2017 2018 2018 2018 2018 Variance 2018 Bud 2018 Rambling River Center FYI-CDBG(i.e.federal funds accounted for elsewhere)totaled$3,920 for the fist half of 2018 and 54,820 for first half 2017. Rec Fees-Sr Ctr 8,262 8,305 4,931 13,236 18,000 (4,764) 74% CDBG funds(federal grant)used to pay for memberships (Excludes CDBG) and programs.Federal grants are accounted for separately.Amounts for 2017 and 2018 are listed above. Overall,there ia an increase in membership. Membership Fees 6,342 2,908 1,926 4,833 9,000 (4,167) 54% CDBG funds(federal grant)used to pay for memberships (Excludes CDBG) and programs.Federal grants are accounted for separately.Amounts for 2017 and 2018 are listed above. Overall,there ia an increase in membership. Advertising 2,364 1.512 348 1,860 2,200 (340) 85% Rental Income-RRC 10,166 7,487 5,383 12,871 22.000 (9,129) 59% Subtotal Rambling River 27,133 20,212 12,588 32.800 51.200 (18,400) 64% Center Revenues Rambling River Center 76,030 40,164 36,790 76,954 177.225 (100,271) 43% Expenses RRC Net (48,896) (19,952) (24,202) (44,154) (126,025) 81,871 35% Revenues/Expenditures Swimming Pool Pool Admissions 10,080 0 0 0 0 0 Pool Closed after 2017 season. Swimming Lesson Fees 3,352 0 0 0 0 0 Concessions 2,222 0 0 0 0 0 Rental Income-Pool 535 0 0 0 0 0 Subtotal Swimming Pool 16,189 0 0 0 0 0 Revenues Pool Expenditures 49,195 1.362 56,529 57,891 74,733 (16,842) 77% Demo Expenses Subtotal Pool Revenues (33,006) (1,362) (56,529) (57,691) (74,733) 16,842 77% Over(Under)Expenditures EDA EDA Revenues 15,833 22,941 1,285 24,226 3.100 21.126 781% Revenues include receipt of Heikala CDBG reimbursement. EDA Expenses 25,354 11,213 10,339 21,553 51.407 (29,854) 42% Includes Open to Business annual charge. EDA Net (9.521) 11.728 (9,054) 2,674 (48,307) 50.981 -6% RevenueslExpenditures Transfers In 20,000 0 0 0 0 0 Transfers Out (827) (713) (713) (1,425) (2,850) 1,425 50% Transfer to Trident TIF district for Dakota County TIF maintenance fees Subtotal Other Financing 19,173 (713) (713) (1425) (2,850) 1,425 50% Net Change in EDA Fund 9,652 11,015 (9,767) 1,249 (51,157) 52,406 -2% Balance Park Improvement Park Improvement 19,311 1,474 160,220 161,694 10,487 151,207 1,542% Regetta park development fees collected in April. Revenues Park Improvement 43,492 0 32,010 32,010 74,500 (42,490) 43% Regetta reimbursement in April. Expenditures Park Improvement Net (24,180) 1,474 128,210 129,684 (64,013) 193,697 -203'/. Change in Fund Balance Ice Arena Ice Arena Revenues 147,095 115,401 29,501 144,902 343.000 (198,098) 42% Ice rental revenue lower than 2017. Ice Arena Expenditures 144,690 100,281 61,806 162,087 319,421 (157,334) 51% Amounts higher than the previous year primarily due to various maintenance and mechanical repairs. Ice Arena-Rev Over 2,405 15.120 (32,304) (17,184) 23,579 (40,763) -73% (Under)Expenditures Ice Arena-Transfers In 0 0 0 0 0 0 Ice Arena-Transfers Out 0 5,000 5,000 10,000 20,000 (10,000) 50% Ice Arena Net Transfers 0 (5,000) (5,000) (10,000) (20,000) 10,000 50% Ice Arena Net Change in 2,405 10,120 (37,304) (27,184) 3,579 (30,763) -760% Fund Balance iii t c - t p )co to m > L y a) >+ w Y cc) co o .c o w N C 4.4, 2`a N N c O T a) C N co U) • - ca •••••V7 E a) E r o YE ca Eo it cro `m a`i >.E 3 O N L N L a) t co O U 5) C O.0 w 0 L C N T-2 m0 a) Rg co a as 0)-- 0 8) 0 N O +' a) a E w a) \ co .N N H ` lo 'y 0 o Cr) O ID C of N N'L" h NC O a)o 0 N 0 5 N In C) 0 a)co o >` 'a c `� ar a > c >.rn C of a) > 0 .`O a) N N N•- c�i �'w a • U 2 L m peaQ rnm m w X za YaA x Z CLo0) o e ' e e e e e o e o e c o e p o fi)e C7 0 M I- N '� in ID r IMO N N O) a ' m A N ..- 7W 0 O tt' O 0 0 0]N I- 0 U Q 0 at v Co- G c0 Q) I() tO Q1 e m In a a) ...,-t-, 0 la C A• ,_ , a. 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C a C b Qas o to ; ° o a W c o °c C o la f` Q C C W � a aC c y > 0 3 0 c0 c o ° 07 F0 CO o CS C m o 'na o ° O ca C 0 o c aa . c0_ . v m m Q a) C0 3 .- oat C ca cu m oY a a t o aco o hE U a) oto , u yy y cc a) o D ldcao Zi O O O O R C O 0 > a) U C O c O 0_ N 03d s o 43 p O cp a 0d � v adt O ' O ` aC aOC WO O O = ` d G J 2 J F O) W C O C9 a t , ao 7 o On 4ac 0 S m W w D_ (3 O a-. cc ,NU aC ao CV2 al O O Oa) N a) 0C ; wo t w o c > :° c > E Ti: ac Ccpco o 2 c :° c > c Oa) ~ oOw a0 a) 0 a0 0 nr a) 'II O a) a) oU ci dU o (3 OF > ce H> o U o U a m c ne d: 0 0 W K a: 0 0 W a: U O Z Sewer, Solid Waste,Storm Water,Water&Street Lights June 2018 YTD Operating Report June YTD Quarter 1 Quarter 2 June YTD December June YTD Actual June YTD YTD Company Actual Actual Actual Actual YTD Budget Budget Variance Act as%of Comment 2017 2018 2018 2018 2018 2018 Bud 2018 ewer Revenues(Sewer) 926,173 405,575 513,645 919,219 2,070,357 (1,151,138) 44% Trending slightly lower than 2017.First quarter was higher, but second quarter there was a small decrease.Numerous service changes with people moving during second quarter. Expenses-(Sewer) 764,358 342,174 334,742 676,916 2,003,644 (1,326,728) 34% There was a decrease in MCES (Metropolitan Council Environmental Services)fees. Revenues Over Expenses(Sewer) 161,815 63,401 178,903 242,304 66,713 175,591 363% Transfers Out(Sewer) 159,063 74,624 74,624 149,247 298,494 (149,247) 50% Net Change in Fund Balance(Sewer) 2,752 (11,222) 104,279 93,057 (231,781) 324,838 -40% olid Waste Revenues(Solid Waste) 925,441 416,200 521,507 937,707 2,163,362 (1,225,655) 43% 2018 is trending higher than in 2017.Waste abatement higher in 2018 to increase reuse and reduce campaign. Expenses-(Solid Waste) 976,008 473,446 597,938 1,071,384 2,387,984 (1,316,600) 45% Revenues Over Expenses(Solid Waste) (50,567) (57,246) (76,431) (133,677) (224,622) 90,945 60% Transfers In(Solid Waste) 31,925 16,712 16,712 33,423 66,846 (33,423) 50% Transfers Out(Solid Waste) 90,669 34,967 34,967 69,933 139,866 (69,933) 50% Net Change in Fund Balance(Solid Waste) (109,312) (75,501) (94,686) (170,187) (297,642) 127,455 57% torm Water Revenues(Storm Water) 298,948 155,829 199,673 355,501 744,787 (389,286) 48% Storm water rate increase in 2018. Expenses-(Storm Water) 54,900 214,515 21,126 235,641 852,487 (616,846) 28% Street sweeper purchased. Revenues Over Expenses(Storm Water) 244,047 (58,686) 178,547 119,861 (107,700) 227,561 -111% Transfers Out 186,075 92,735 92,735 185,469 370,939 (185,470) 50% Net Change in Fund Balance(Storm Water 57,972 (151,421) 85,812 (65,609) (478,639) 413,030 14% rater Revenues(Water) Water Availability Charges 38,905 5,020 17,570 22,590 67,000 (44,410) 34% Correlates to building permit activity. Net Interest Income 43,298 30,729 36,251 66,980 70,900 (3,920) 94% Higher rate of interest income than 2017. Rental Income 133,059 88,218 49,282 137,500 213,885 (76,385) 64% Reflects wireless companies(ex. Sprint,AU,Verizon)rental of space on the city's water towers. Enterprise Sales 450,905 184,520 270,809 455,329 1,150,000 (694,671) 40% All Other Revenues 17,809 3,439 173,422 176,861 25,690 151,171 688% Correlates to building permit activity. The majority is allocated to Regetta. Total Revenues 683,976 311,925 547,334 859,259 1,527,475 (668,216) 56% Expenses-(Water) 266,444 121,341 114,481 235,822 1,775,587 (1,539,765) 13% Revenues Over Expenses(Water) 417,532 190,584 432,854 623,437 (248,112) 871,549 -251% Transfers Out(Water) 209,309 100,806 100,806 201,612 403,225 (201,613) 50% Net Change in Fund Balance(Water) 208,223 89,777 332,047 421,825 (651,337) 1,073,162 -65% treetlight Revenues(Streetlight) 96,503 40,594 56,525 97,119 225,300 (128,181) 43% Expenses 93,859 42,752 40,530 83,282 209,200 (125,918) 40% Revenues Over Expenses(Street Light) 2,643 (2,158) 15,994 13,836 16,100 (2,264) 86% '8/2018 12:07:33 PM Page 1 of ,,4"Rif , City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 -Fax 651.280.6899 ,-,A ,, www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator FROM: Brenda Wendlandt, Human Resources Director SUBJECT: Closed Session to Discuss Labor Negotiations DATE: August 20, 2018 INTRODUCTION City staff is recommending a closed session to discuss 2018 labor negotiations DISCUSSION State statute allows the city council to go into closed session to discuss a limited number of topics; and one of those topics is labor negotiations. The city has four collective bargaining agreements and all will expire on December 31, 2018. Staff has begun negotiations with three of those bargaining units -AFSCME-Clerical, Technical and Professional, AFSCME-Maintenance, and LELS Police Sergeants; and have requested dates from the LELS Patrol Officer to begin those negotiations. Staff will update the council on the status of negotiations and discuss council priorities for labor negotiations. BUDGET IMPACT TBD ACTION REQUESTED Under the authority granted in Minnesota Statute 13D.05, a motion should be made to go into closed session for the purpose of discussing 2018 labor negotiations.