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HomeMy WebLinkAbout09.03.19 Council Packet CITY OF FARMINGTON Meeting Location: Farmington City Hall = At.r•r 430 Third Street Farmington, MN 55024 CITY COUNCIL REGULAR MEETING AGENDA September 3, 2019 7:00 P.M. Action Taken 1. CALL TO ORDER 7:00 P.M. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA 5. ANNOUNCEMENTS/COMMENDATIONS 4) Oath of Office and Badge Pinning of Fire Officers Administered 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 12, 2019, Special City Council Meeting— Administration Approved b) Approve Minutes of the August 12, 2019, City Council Work Session- Administration Approved c) Adopt Resolution Accepting a Donation from Happy Harry's Furniture to the Rambling River Center—Parks R33-19 d) Approve Contract Schmitz-Maki Arena Railings Modification Project— Parks Approved e) Award Contract for 2019 Trail Replacement—Public Works Awarded f) Award Contract for 2019 Mill and Overlay Projects—Public Works Awarded g) Adopt Ordinance Amending Title 2, Chapter 11, Section 3 of the Farmington City Code Regarding the Heritage Preservation Commission Powers and Duties—Community Development Ord 019-747 h) Adopt Resolution Assigning the Powers and Duties of the Heritage Preservation Commission to the Planning Commission—Community Development R34-19 i) Approve Position Adjustment—Human Resources Approved j) Approve Appointment Recommendation Information Technology—Human Resources Approved k) Acknowledge Financial Review for the Month Ending June 30, 2019 - Finance Acknowledged 1) Approve Bills - Finance Approved REGULAR AGENDA 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS,REQUESTS AND COMMUNICATIONS 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) Adopt Resolution Approving Preliminary 2020 General Fund Budget and Tax Levy R35-19 13. CITY COUNCIL ROUNDTABLE 14. EXECUTIVE SESSION a) City Administrator Annual Performance Review Information Received 15. ADJOURN CITY OF 0430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Justin Elvestad, Fire Chief SUBJECT: Oath of Office and Badge Pinning of Fire Officers DATE: September 3, 2019 INTRODUCTION With the hiring of the full time Deputy Fire Chief the fire department has had three officer promotions and they will be sworn in tonight; three fire officers will be pinned with their badges and take the oath of office. DISCUSSION Matthew Price was promoted to Deputy Chief in July; Deputy Chief Price has been with the fire department since 2013. Brian Hanson was promoted to Captain in July; Captain Hanson has been with the department since 2008. Caleb Bolton was promoted to Lieutenant in August; Lieutenant Bolton has been with the department since 2010 City Administrator McKnight will administer the oath of office and their badges will be pinned by an individual of their choice. BUDGET IMPACT NA ACTION REQUESTED Welcome the new officers into their positions. CITY OF 430 Third Si, Farmington, MN 55024 FARM I TGTON 0 6,2_280_680o TFarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Approve Minutes of the August 12, 2019 Special City Council Meeting- Administration DATE: September 3, 2019 INTRODUCTION Attached for your review are the minutes of the August 12, 2019 special city council meeting. DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED Approve the minutes of the August 12, 2019 special city council meeting. ATTACHMENTS: Type Description o Backup Material August 12, 2019 Special City Council Meeting Minutes CITY OF FARMINGTON CITY COUNCIL MINUTES SPECIAL MEETING AUGUST 12, 2019 1. Call to Order Mayor Larson called the meeting to order at 6:00 p.m. 2. Pledge of Allegiance Mayor Larson led those in attendance in the Pledge of Allegiance. 3. Roll Call Present-Larson, Bernhjelm, Craig, Donnelly and Hoyt Absent-None Staff Present-Administrator McKnight, Parks and Recreation Director Distad, Public Works Director Gehler, Police Chief Rutherford, Fire Chief Elvestad, Human Resources Director Malecha and Finance Director Malecha. 4. Agenda Motion by Craig, second by Hoyt,to approve the agenda as presented. APIF, motion carried. 5. Announcements/Commendations None 6. Citizen Comments None 7. Consent Agenda Motion by Bernhjelm, second by Craig, to approve the consent agenda: a) Approve Minutes of the August 5, 2019 City Council Meeting-Administration b) Approve Minutes of the August 5, 2019 City Council Work Session-Administration c) Approve Out of State Training-Police d) Appointment Recommendation Liquor Operations-Human Resources e) Approve City Administrative Policies and Procedures: 3.9 Cellular Phones and Wireless Communications-Human Resources August 12, 2019 Minutes -1- f) Adopt Resolution R32-2019 Accepting a Donation from Happy Harry's Furniture to the Rambling River Center-Parks g) Authorize Staff to Proceed with the Lowest Responsible Bidder Arena Railing Modification Project Before Contract Approval-Parks 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) Award Contracts for Miscellaneous Projects Public Works Director Gehler presented the bids summary for the 2019 Mill and Overlay project,Vermillion River Crossings sidewalk replacement, Prairie Waterway trail replacement and the 2019 sanitary sewer-lining project. The bids submitted include: 2019 Mill and Overlay Bids Bidder Base Bid Alt. One Alt.Two Alt.Three Total Minnesota $428,041.49 $105,434.50 $113,724.96 $96,369.54 $743,570.49 Paving VRC Sidewalk Replacement Bidder Base Bid Theis $110,826.11 Pember $127,723.84 Prairie Waterway Trail Replacement Bidder Base Bid Pine Bend Paving $67,076.48 August 12, 2019 Minutes -2- Northwest Asphalt $72,726.53 2019 Sanitary Sewer Lining Bidder Base Bid Hydro Klean $201,693.00 Visu-Sewer $209,193.00 Instuform $218,691.40 SAK $229,927.00 Michels $239,261.75 Granite $272,941.50 Veit $301,724.00 With the favorable bids, Gehler requested that the city council allow her to discuss with contractors their openness to any small expansion of the projects on mill and overlays and the Prairie Waterway work. The city council was supportive of this idea. Councilmember Donnelly asked that the funding sources be clarified with the city council in a summary memo. Gehler will provide this information to the city council. Donnelly asked how long sewer liners last. Gehler stated they last a long time and are not a temporary fix. Motion by Bernhjelm, second by Hoyt, to award the low bid in each project as listed contingent upon final staff review of bids submitted. APIF, motion carried. 13. City Council Roundtable None Adjourn Motion by Bernhjelm, second by Hoyt,to adjourn the meeting at 6:15 p.m. APIF, motion carried. Respectfully Submitted David A imoK•visfist David McKnight, City Administrator August 12, 2019 Minutes -3- CITY OF 430 Third St, Farmington, MN 55024 I FA MINCT i- _ $ r401/1 - - FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Admnistrator SUBJECT: Approve Minutes of the August 12, 2019 City Council Work Session-Administration DATE: September 3, 2019 INTRODUCTION Attached for your review are the minutes of the August 12, 2019 city council work session. DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED Approve the minutes of the August 12, 2019 city council work session. ATTACHMENTS: Type Description D Backup Material August 12, 2019. City Council Work Session Minutes CITY OF FARMINGTON CITY COUNCIL MINUTES WORK SESSION AUGUST 12, 2019 Mayor Larson called the work session to order at 6:15 p.m. Roll Call Present-Larson, Bernhjelm, Craig, Donnelly and Hoyt Absent-None Also Present-Administrator McKnight, Public Works Director Gehler, Community Development Director Kienberger, Police Chief Rutherford, Fire Chief Elvestad, Human Resources Director Gabbard, Finance Director Malecha and Parks and Recreation Director Distad Agenda Motion by Bernhjelm, second by Craig, to approve the agenda. APIF, motion carried. Heritage Preservation Commission Ordinance Update Community Development Director Kienberger reminded the city council of recent discussions that provided staff with the go ahead to reestablish the Heritage Preservation Commission (HPC). City staff is proposing that the powers and duties of the HPC be assigned to the Planning Commission. This will allow action to occur on required permits without removing the city council ability to appoint a separate commission in the future if desired. City staff worked with the city attorney in developing draft language amending the existing HPC ordinance. The consensus of the city council was to move forward as proposed on this issue and bring it back to the city council for formal consideration. Draft 2020 Budgets Finance Director Malecha presented the draft 2020 budgets for city council review. General Fund At the July 8, 2019 work session, city staff presented the city council with a zero percent levy increase: August 12, 2019 Work Session Minutes - 1- 2019 Budget 2020 Proposed Increase/(Decrease) Revenue $3,199,486 $3,406,372 6.47% Expenditures $13,007,794 $13,637,563 4.84% Fiscal Disparities $2,225,003 $2,240.713 0.71% General Fund Levy $7,583,305 $7,990,378 5.37% Debt Levy $3,212,460 $2,805,387 (12.67%) Net Tax Levy $10,795,765 $10,795,765 0.00% The consensus of the city council was to stay at the zero percent for 2020. The city council asked staff to bring back options to increase the levy one percent with that money going towards building maintenance projects. Staff proposes the following priority one projects from the 2017 facility analysis if the levy is increased. Fire Station#1 ✓ Provide Automatic Door Operations at Main Entrance $20,000 ✓ Replace 17 Interior Doors and Hardware for ADA $33,000 Rambling River Center ✓ Replace eight interior Doors and Hardware for ADA $16,000 ✓ Replace Front Desk Counter for ADA $5,000 ✓ Replace Existing Water Main in Garage $27,000 Engineering/Design Fees $7,575 TOTAL $108,575 Councilmember Craig asked what the ADA issues included. Parks and Recreation Director Distad shared it was primarily door/door handle issues in both buildings. Councilmember Bernhjelm supported increasing the levy now to address these issues as opposed to waiting for later. The consensus of the city council was to keep the 2020 levy at zero percent and have staff bring back 2020 building projects once the amount of dollars available for 2020 is better known. Debt Service Funds The Debt Service Fund budgets provide funding for scheduled debt principle and interest repayment obligations as well as all fees associated with city debt. The 2020 debt levy is 12.67 lower than 2019 due to reduced debt obligations. August 12, 2019 Work Session Minutes -2- Park Improvement Fund The Park Improvement Fund 2020 budget includes$25,000 in park development fees and $75,000 in liquor store profits along with $8,245 in rental income and $3,500 in investment revenue. Projects proposed for 2020 include$3,000 for a Prairie Waterway shelter roof, $6,000 to resurface the basketball court at Westview Park and $30,000 to replace the backstop at Feely Fields#1. Schmitz-Maki Arena The arena operational budget is very similar year to year. The current budget has a loss of $7,840. Malecha stated this budget would be reworked and brought back to the city council with a break-even budget. Cable Communications Fund This budget receives funding quarterly from franchise fees and PEG fees. At the July 8, 2019 work session, city staff proposed using some of these franchise funds for a one-time project. This work is still in progress. Fire Capital Projects This fund is now retired with the purchase of Engine 11 in 2019. General Capital Equipment Fund This fund is used for the purchase of capital equipment for many departments. Purchases proposed in 2020, to be reviewed as a part of the capital improvement plan, include police vehicles, police and fire equipment and department vehicles. Maintenance Funds Large-scale maintenance and replacement costs for streets,trails and buildings based on their respective capital improvement plans are included in this fund. The 2020 budget includes pavement management projects in the amount of$627,033 that will be reviewed as part of the capital improvement plans. Liquor Store Fund The liquor store budgets are estimated to produce a profit of$302,808 in 2020. The transfers from the liquor store fund include$61,452 in administration costs and $75,000 to the Park Improvement Fund. August 12,2019 Work Session Minutes -3 - Water Fund The city operates and maintains its own waster system. The 2020 budget includes the construction of a new water tower in the north part of the city. Sanitary Sewer Fund The city is part of the metropolitan regional wastewater treatment system fun by the Met Council. Wastewater collected in the city is discharged to regional trunk lines that flow to the wastewater treatment plant in Empire. The Met Council charges all cities for the operation and maintenance of these systems based on actual flow measured through volume weighed annually. Farmington's charges for 2020 will be $1,390,877 which is roughly$66,000 higher than 2019. Mayor Larson asked that the discharge numbers be reviewed to ensure accuracy since there was an issue a number of years ago. Staff will follow up on this issue. Solid Waste Fund The city operates solid waste collection services within the city and has the benefit of having a single hauler community. Street Lighting Fund The city owns and maintains streetlights primarily in the downtown and Vermillion River Crossings area. Expenses associated with our lights are budgeted for in this fund with revenues generated from a quarterly fee paid with other utilities. The city council was comfortable with the 2020 budget as it stands. Review 2020-2024 Capital Improvement Plan Public Works Director Gehler presented the capital improvement plans (CIP) for city council review. There are several sources of revenue for the plans including the tax levy, local government aid, utility enterprise funds,trunk funds, Municipal State Aid dollars, liquor operation proceeds and debt. Gehler shared the CIP's are a five-year look forward but year one is the most important year to consider. Capital projects and purchases are generally$5,000 in value or greater that replace or significantly improve existing assets. The CIP is comprised of the following components: 1. Street Reconstruction 2. Pavement Management 3. Utilities (Water, Sanitary Sewer, Stormwater) 4. Vehicles and Equipment August 12,2019 Work Session Minutes -4- 5. Trail and Sidewalk Maintenance 6. Parks Improvement 7. Building Maintenance Street Reconstruction Gehler reviewed the Street Reconstruction CIP. The 2020 budget includes a turn lane at 209th Street on Highway 3 and participate in the NE Farmington Study with Dakota County and Empire Township. The next major projects is the reconstruction of Spruce Street and Division Street in 2023. Pavement Management This CIP includes the scheduled crack sealing, seal coating and mill and overlay work that is done on city streets. The 2020 budget includes a significant amount of mill and overlay work and a reduction in seal coating. Gehler explained the issue with pavement that was used in the 1990's and how it is deteriorating faster than expected. Equipment Replacement This CIP encompasses vehicles and equipment across all departments. The 2020 budget has always been targeted as the year where significant investments would start to be made in this area. Gehler shared that significant points of the 2020 plan include the purchase of a tractor and blower primarily for snow removal and the purchase of a plow truck from the storm water fund. Trail and Sidewalk Maintenance Work on city trails and sidewalks continues to be an important issue. Gehler reviewed the amount of funding available for 2020. Administrator McKnight stated that this is an area that continues to need additional funding. Councilmember Donnelly asked about the work around the Storm Water Pond Ann area. Gehler stated that work had started in this area. Donnelly expressed some concerns about the work that had been done and asked staff to review this work. Water Fund The 2020 CIP includes the construction of a new water tower. August 12,2019 Work Session Minutes -5- Sanitary Sewer The 2020 budget includes continued sanitary sewer lining projects. Gehler noted the purchase of a new vacuum truck is scheduled for 2021. Gehler noted the fund balance in this fund is healthy and no increase in the fees for this fund will be proposed for 2020. Storm water The 2020 CIP includes the traditional work that occurs with our stormwater system. City Administrator Update Administrator McKnight reminded the city council of the upcoming Coffee with the Council that starts this week and the tour with the Parks and Recreation Advisory Commission scheduled for Wednesday. McKnight reminded the city council that applications are now being taken for a vacant seat on the Planning Commission. The city council asked that these interviews be scheduled for September 16, 2019. McKnight reviewed the recent intoxicating liquor license violations. McKnight asked the city council about a boards and commission reception/meeting. The city council would like to hold a year-end summary meeting in early December. Adjourn Motion by Hoyt, second by Craig, to adjourn the meeting at 7:38 p.m. APIF, motion carried. Respectfully Submitted David McKnight, City Administrator August 12, 2019 Work Session Minutes -6- CITY OF 0430 Third St., Farmington, MN 55024 FARM I N GTO N © 65i-280-6800 FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Randy Distad, Parks and Recreation Director SUBJECT: Adopt Resolution Accepting a Donation from Happy Harry's Furniture to the Rambling River Center-Parks DATE: September 3, 2019 INTRODUCTION A donation was recently made to the Rambling River Center by Happy Harry's Furniture. DISCUSSION A donation in the amount of$95.00 was recently made by Happy Harry's Furniture to the RRC. The donation was made through a program created in 2011, in which a customer of Happy Harry's Furniture is able to select a charity of their choice to receive a donation when merchandise is purchased from the store. Then, 10%from the sale to the customer is donated to the charity. The RRC is one of the charities that can be selected by customers. With this most recent donation, Happy Harry's Furniture has donated a total of$11,590.94 to the RRC since the program's inception.This donation has been deposited into the RRC Capital Improvement Fund to fund future building improvements and/or purchase new equipment. Accepting this donation fits with the City Council's priority of forging partnerships with existing partners. Specifically it aligns with working with the business community to provide opportunities for partnerships, sponsorships and more. This partnership with Happy Harry's Furniture has been very beneficial over the long term given the funds that have been donated to the RRC. Staff will communicate the city's appreciation on behalf of the City Council to Happy Harry's Furniture for their generous donation to the RRC. BUDGET IMPACT NA ACTION REQUESTED Adopt the attached resolution accepting the donation of$95.00 from Happy Harry's Furniture to the Rambling River Center. ATTACHMENTS: Type Description D Resolution Happy Harry's Furniture Donation RESOLUTION NO. R3 3-1 9 ACCEPT DONATION OF $95.00 FROM HAPPY HARRY'S FURNITURE TO THE RAMBLING RIVER CENTER 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 3rd day of September, 2019 at 7:00 p.m. Members Present: Larson, Bernhj elm, Craig, Donnelly, Hoyt Members Absent: None Member Hoyt and Member Bernhj elm introduced and seconded the following: WHEREAS, a donation of$95.00 was made by Happy Harry's Furniture to the Rambling River Center; and, WHEREAS, it is required by State Statute that such donation be formally accepted; and, WHEREAS, it is in the best interest of the city to accept this donation. NOW, THEREFORE, BE IT RESOLVED that the city of Farmington hereby accepts with gratitude the generous donation of$95.00 from Happy Harry's Furniture to the Rambling River Center. This resolution adopted by recorded vote of the Farmington City Council in open session on the 3rd day of September, 2019. Mayor Attested to the 3` day of September, 2019. / % I • dministrator SEAL CITY OF 0430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 p O FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Randy Distad, Parks and Recreation Director SUBJECT: Approve Contract Schmitz-Maki Arena Railings Modification Project-Parks DATE: September 3, 2019 INTRODUCTION Staff solicited quotes to complete modifications to the existing stair and bleacher railings at Schmitz-Maki Arena. DISCUSSION In the 2017 Facility Analysis Report that Wold Architects and Engineers completed for the city, one of the highest priority building improvements identified was a railings modification project in the arena. This project was identified as a high priority because the existing railings around the bleachers and stairs do not comply with the American's with Disabilities Act and the current building code. The approved 2019 budget identified $40,000.00 available to fund this project.The City Council hired Wold at its February 19, 2019 meeting to complete the plans and specifications for this project. City staff then worked with Wold staff to develop and complete project plans and specifications. Once project plans and specifications were completed, staff direct mailed them to nine contractors experienced with this type of work.The deadline for contractors to submit their quote was on or before 11:00 a.m. on August 22, 2019. Two quotes were submitted by the deadline. One quote was submitted by Parkos Construction, Inc. in the amount of$29,600.00,which included an alternate bid to paint the railings before installation. A second quote submitted was from JML Fabrication, LLC in the amount of $10,700, which included an alternate quote to paint the railings before installation.The low quote submitted by JML Fabrication, LLC was$29,300.00 under the budgeted project cost. Attached is the agreement form with JML Fabrication, LLC for the project work. It has been reviewed by the contractor and they have found it to be acceptable. The contractor will provide a one year full warranty on labor and materials. BUDGET IMPACT The approved 2019 budgeted provided $40,000.00 for the Arena project. The quote submitted by J M L Fabrication, LLC to complete the project was$10,700.00,which is$29,300.00 under the budgeted amount. ACTION REQUESTED Approve the contract with JML Fabrication, LLC in the amount of$10,700.00 to complete the Arena project. ATTACHMENTS: Type Description ID Contract Contract Arena Railings Modification Project AGREEMENT . AGREEMENT made this .3"`` day of .- J , 2019, between the CITY OF FARMINGTON, a Minnesota municip Lorporation ("City"), and JUL • FABRICATION,LLC,a Minnesota corporation("Contractor"). • • IN CONSIDERATION OF THE MUTUAL UNDERTAKINGS HEREIN CONTAINED,THE PARTIES AGREE AS FOLLOWS: 1. CONTRACT DOCUMENTS. The following documents shall be referred to as the "Contract Documents", all of which shall be taken together as a whole as the contract between the • parties as if they were set verbatim and in full herein: • A. This Agreement • • B. Contractor Proposal,attached as Exhibit"A." In the event of conflict among the provisions of the Contract Documents, the order in which they ••• are listed above shall control in resolving any such conflicts with Contract Document "A" having the first priority and Contract Document "B" having the last priority. • 2. OBLIGATIONS OF THE CONTRACTOR. The Contractor shall provide the goods,services,and perform the work in accordance with the Contract Documents. 3. OBLIGATIONS OF THE CITY. The City shall pay the Contractor in accordance with the bid. 4. SOFTWARE LICENSE. If the equipment provided by the Contractor pursuant to this Contract contains software,including that which the manufacturer may have embedded into the hardware as an integral part of the equipment, the Contractor shall pay all software licensing fees, The Contractor shall also pay for all software updating fees for a period of one year following • cutover. The Contractor shall have no obligation to pay for such fees thereafter. Nothing in the software license or licensing agreement shall obligate the City to pay any additional fees as a • condition for continuing to use the software. 5. ASSIGNMENT. Neither party may assign, sublet, or transfer any interest or obligation in this Contract without the prior written consent of the other party, and then only upon such terms and conditions as both parties may agree to and set forth in writing. 6. TIME OF PERFORMANCE. The Contractor shall complete its obligations on or before November 1,2019. 7, PAYMENT. a. The City shall pay 30%down($3,210.00) with the remaining balance of$7,490.00 paid after the project obligations of the Contractor have been fulfilled, inspected, and accepted. Such payment shall be made not later than thirty (30) days after completion, certification thereof, and invoicing by the Contractor. b. No final payment shall be made under this Contract until Contractor has satisfactorily established compliance with the provisions of Minn. Stat. Section 290.92. A certificate of the commissioner shall satisfy this requirement with respect to the Contractor or any subcontractor, 8. EXTRA SERVICES. 'No claim will be honored for compensation for extra services or beyond the scope of this Agreement or the not-to-exceed price for the services identified in the proposal without written submittal by the Contractor, and approval of an amendment by the • City, with specific estimates of type, time, and maximum costs, prior to commencement of the work. 9. PROMPT PAYMENT TO SUBCONTRACTORS. Pursuant to Minnesota • Statute 471.25, Subdivision 4a, the Contractor must pay any subcontractor within ten (10) days of the Contractor's receipt of payment from the City for undisputed services provided by the subcontractor. The Contractor must pay interest of one and one-half percent(1 V2%)per month or any part of a month to subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest penalty payment for an unpaid balance of$100.00 or more is $10.00. For an unpaid balance of less than $100.00, the Contractor shall pay the actual penalty due to the subcontractor. A subcontractor who prevails in a civil action to collect interest penalties from the Contractor shall be awarded its costs and disbursements, including attorney's fees,incurred in bringing the action. • 10. WORKER'S COMPENSATION. If Contractor does public work,the Contractor shall obtain and maintain for the duration of this Contract, statutory Worker's Compensation Insurance and Employer's Liability Insurance as required under the laws of the State of Minnesota. 11. COMPREHENSIVE GENERAL LIABILITY. Contractor shall obtain the following minimum insurance coverage and maintain it at all times throughout the life of the Contract,with the City included as an additional name insured by endorsement: Bodily Injury: $2,000,000 each occurrence $2,000,000 aggregate,products and completed operations Property Damage: $2,000,000 each occurrence $2,000,000 aggregate Products and Completed Operations Insurance shall be maintained for a minimum period of three (3) years after final payment and Contractor shall continue to provide evidence of such coverage to 2 City on an annual basis during the aforementioned period;or if any reason Contractor's work ceases before final payment,for a minimum period of three(3)years from the date Contractor ceases work. Property Damage Liability Insurance shall include coverage for the following hazards: X (Explosion) C (Collapse) • U (Underground) • Contractual Liability(identifying the contract): • Bodily Injury: $2,000,000 each occurrence •• Property Damage: $2,000,000 each occurrence $2,000,000 aggregate Personal Injury,with Employment Exclusion deleted: $2,000,000 aggregate Comprehensive Automobile Liability(owned,non-owned,hired): Bodily Injury: $2,000,000 each occurrence • $2,000,000 each accident Property Damage: $2,000,000 each occurrence • • • 12. MINNESOTA GOVERNMENT DATA PRACTICES ACT. Contractor must • comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it • applies to (1) all data provided by the City pursuant to this Agreement, and.(2) all data, created, collected, received, stored, used, maintained, or disseminated by Contractor pursuant to this Agreement. Contractor is subject to all the provisions of the Minnesota Government Data Practices Act,including but not limited to the civil remedies of Minnesota Statutes Section 13.08,as if it were a government entity. In the event Contractor receives a request to release data, Contractor must • immediately notify City. City will give Contractor instructions concerning the release of the data to •• the requesting party before the data is released. Contractor agrees to defend, indemnify, and hold •• City, its officials, officers, agents, employees, and volunteers harmless from any claims resulting from Contractor's officers', agents', city's, partners', employees', volunteers', assignees' or subcontractors' unlawful disclosure and/or use of protected data. The terms of this paragraph shall survive the cancellation or termination of this Agreement. 13. RECORDS. Contractor shall maintain complete and accurate records of expenses involved in the performance of services. 14. WARRANTY. The Contractor guarantees that all new equipment warranties as specified within the bid shall be in full force and transferred to the City upon payment by the City. The Contractor shall be held responsible for any and all defects in workmanship, materials, and equipment which may develop in any part of the contracted service, and upon proper notification by the City shall immediately replace, without cost to the City, any such faulty part or parts and damage done by reason of the same in accordance with the bid specifications. The Contractor • further warrants to the City that all goods and services furnished under the Contract will be in • conformance with Contract Documents and that the goods are of merchantable quality and are fit for the use for which they are sold. This warranty is in addition to any manufacturer's standard • warranty,and any warranty provided by law. 15. NONDISCRIMINATION. All Contractors and subcontractors employed shall comply with all applicable provisions of all federal, state and municipal laws which prohibit • discrimination in employment to members of a protected class and all rules and regulations, • promulgated and adopted pursuant thereto. The Contractor will include a similar provision in all subcontracts entered into for the performance of this contract. 16. INDEMNITY. The Contractor agrees to defend,hold harmless,and indemnify the City,its officers, agents, and employees, for and against any and all claims, demands,actions,or causes of action, of whatever nature or character, arising from the Consultant's performance of work or services provided for herein. The Contractor shall take all reasonable precautions for the safety of all employees on the site and shall provide reasonable protection to prevent damage or • loss to the property on the site or properties adjacent thereto and to work, materials and •• • equipment under the Contractor's control. 17. WAIVER. In the particular event that either party shall at any time or times waive any breach of this Contract by the other, such waiver shall not constitute a waiver of any other or • any succeeding breach of this Contract by either party, whether of the same or any other covenant, condition,or obligation. 18. GOVERNING LAW. The laws of the State of Minnesota govern the interpretation of this Contract. 19. SEVERABILITY. If any provision,term,or condition of this Contract is found to be or become unenforceable or invalid, it shall not effect the remaining provisions, terms, and •• conditions of this Contract, unless such invalid or unenforceable provision, term, or condition . renders this Contract impossible to perform. Such remaining terms and conditions of the Contract shall continue in full force and effect and shall continue to operate as the parties'entire contract. 20. ENTIRE AGREEMENT. This Contract represents the entire agreement of the parties and is a final,complete,and all inclusive statement of the terms thereof, and supersedes and terminates any prior agreement(s), understandings, or written or verbal representations made between the parties with respect thereto. 21. TERMINATION. This Agreement may be terminated by the City for any reason or for convenience upon written notice to the Contractor. In the event of termination, the City shall be obligated to the Contractor for payment of amounts due and owing for materials provided or for services performed or furnished to the date and time of termination. 4 Dated: ,2019. CITY OF FARMINGTON By. To•d Larson,Mayor By: i��/ 'd McKnight,�inistrator Dated: c . 1,rk,2019 CONTRACTOR: ,IML FABRICATION,LLC By: 16; 6 �6 Its: PAW-C11/Ylk 5 E34 BIT 4 21130 Chippendale Ave Farmington,MN 55024 612-444-3025 • 651-460-3674(fax) JML Fabrication, LLC :Quote#215:1. August 20,2019 City of Farmington Farmington,MN 55024 Attn: Jeremy Piro • Subject: Schmitz-Mai Arena Rails Thank you for the opportunity to quote on your fabrication requirements. Pricing below includes: Drawings for review,material,fabrication,finish(option),hardware,installation and shipping to site. Rails as indicated on drawings 8-4-19 . •• Fabrication and Installation-$8,850 Finish options: Paint-$1600 Powder.coat $1850 ***Sales Tax is not applied to the above • Lead time: 6 weeks after drawings approval Terms:30%Down Payment—Balance Net 30 days. All prices are subject to material availability and current mill prices. Mill prices can change at any time. Margo Lackore JML Fabrication,LLC SBE-DBE-WBENC—MBE-MNDOT-TGE and AWS Certified • www.j m l.fabricati on.co m CITY OF O 430 Third St., Farmington, MN 55024 FARM I N GTO N © 651.280.6800 �ull�rily O FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Tom Hoffman SUBJECT: Award Contract for 2019 Trail Replacement-Public Works DATE: September 3, 2019 INTRODUCTION Quotes for pavement maintenance services were solicited by the city for replacement of a section of trail in the Prairie Waterway. The work will include a complete reclamation of the existing bituminous trail and subgrade,along with replacement of 3" of new bituminous trail. DISCUSSION Staff solicited quotes for the work and recieved the following: Pine Bend Paving: $66,986.48 Northwest Asphalt I nc: $72,726.53 Quotes were brought to the August 12, 2019 City Council work session. Based on the favorable pricing and available budget for the project,the city council concurred with staff to maximum the amount of trail completed with the amount available budget. Staff worked with Pine Bend Paving,the low bidder, and was able to double the amount of trail replacement. The final contract price will be$138,560.98 BUDGET IMPACT The cost for the trail replacement was anticipated in the 2019 budget within the Trail Maintenance Fund, a total of$150,000 was set aside for trail work. ACTION REQUESTED Approve a contract for the Prairie Waterway Trail replacement with Pine Bend paving in the amount of $138,560.98 and authorize the Mayor and City Administrator to execute the same. ATTACHMENTS: Type Description ❑ Contract 2019 Prairie Waterway Contract O Exhibit 2019 Prairie Waterway Map FORM OF AGREEMENT FOR CONSTRUCTION Farmington 2019 Prairie Waterway Trail Replacement THIS AGREEMENT made this 12th day of August 2019,by and between the CITY OF FARMINGTON,a Minnesota municipal corporation("Owner"or"City")and Pine Bend Paving.("Contractor"). Owner and Contractor,in consideration of the mutual covenants set forth herein,agree as follows: 1. CONTRACT DOCUMENTS. Contractor shall complete all Work as specified or indicated in the Contract Documents. The Work is generally described as the reclamation and replacement of trail in the Prairie Waterway Park. The following documents shall be referred to as the"Contract Documents",all of which shall be taken together as a whole as the contract between the parties as if they were set verbatim and in full herein: A. This Agreement. B. MnDOT Standard Specifications for Construction D. City of Farmington Engineering Guidelines and Standard Detail Plates D. Contractor's Quote. In the event of a conflict among the provisions of the Contract Documents,the order in which they are listed above shall control in resolving any such conflicts with Contract Document"A"having the first priority and Contract Document"E" having the last priority. 2. OBLIGATIONS OF THE CONTRACTOR. The Contractor shall provide the goods,services,and perform the work in accordance with the Contract Documents. 3. CONTRACT PRICE. Owner shall pay Contractor for completion of the Work,in accordance with the Contract $138,560.98 inclusive of taxes,if any. 4. PAYMENT PROCEDURES. A. Contractor shall submit Application for Payment upon completion of the work. Application for Payment will be processed by the City Engineer. B. Payments to Subcontractors. (1) Prompt Payment to Subcontractors. Pursuant to Minn.Stat.§471.25,Subd.4a,the Contractor must pay any subcontractor within ten(10)days of the Contractor's receipt of payment from the City for undisputed services provided by the subcontractor. The Contractor must pay interest of 1%percent per month or any part of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest penalty payment for an unpaid balance of$100.00 or more is$10.00. For an unpaid balance of less than$100.00,the Contractor shall pay the actual penalty due to the subcontractor. (2) Form IC-134(attached)required from general contractor. Minn.Stat.§290.92 requires that the City of Farmington obtain a Withholding Affidavit for Contractors, Form IC-134, before making final payments to Contractors. This form needs to be submitted by the Contractor to the Minnesota Department of Revenue for approval. The form is used to receive certification from the state that the vendor has complied with the requirement to withhold and remit state withholding taxes for employee salaries paid. D. Final Payment. Due to the small scope and short duration of this project,only one payment will be made upon completion of the project as recommended by the City Engineer. 5. COMPLETION DATE. The Work must be completed by October 26,2019. 6. CONTRACTOR'S REPRESENTATIONS. A. Contractor has examined and carefully studied the Contract Documents and other related data identified in the Contract Documents. B. Contractor has visited the Site and become familiar with and is satisfied as to the general,local, and Site conditions that may affect cost, progress,and performance of the Work. C. Contractor is familiar with and is satisfied as to all federal,state,and local laws and regulations that may affect cost,progress,and performance of the Work. D. Contractor has carefully studied all: (1)reports of explorations and tests of subsurface conditions at or contiguous to the Site and all drawings of physical conditions in or relating to existing surface or subsurface structures at or contiguous to the Site(except Underground Facilities) which have been identified in the General Conditions and(2)reports and drawings of a Hazardous Environmental Condition,if any,at the Site. E. Contractor has obtained and carefully studied(or assumes responsibility for doing so)all additional or supplementary examinations,investigations,explorations,tests,studies,and data concerning conditions(surface,subsurface,and Underground Facilities)at or contiguous to the Site which may affect cost,progress,or performance of the Work or which relate to any aspect of the means, methods,techniques,sequences,and procedures of construction to be employed by Contractor,including any specific means, methods,techniques,sequences,and procedures of construction expressly required by the Bidding Documents,and safety precautions and programs incident thereto. F. Contractor does not consider that any further examinations,investigations,explorations,tests, studies,or data are necessary for the performance of the Work at the Contract Price,within the Contract Times,and in accordance with the other terms and conditions of the Contract Documents. G. Contractor is aware of the general nature of work to be performed by Owner and others at the Site that relates to the Work as indicated in the Contract Documents. H. Contractor has correlated the information known to Contractor,information and observations obtained from visits to the Site,reports and drawings identified in the Contract Documents,and all additional examinations,investigations,explorations,tests,studies,and data with the Contract Documents. The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work. J. Subcontracts: (1) Unless otherwise specified in the Contract Documents,the Contractor shall,upon receipt of the executed Contract Documents,submit in writing to the Owner the names of the Subcontractors proposed for the work. Subcontractors may not be changed except at the request or with the consent of the Owner. (2) The Contractor is responsible to the Owner for the acts and omissions of the Contractor's subcontractors,and of their direct and indirect employees,to the same extent as the Contractor is responsible for the acts and omissions of the Contractor's employees. (3) The Contract Documents shall not be construed as creating any contractual relation between the Owner and any subcontractor. (4) The Contractor shall bind every subcontractor by the terms of the Contract Documents. 7. WORKER'S COMPENSATION. The Contractor shall obtain and maintain for the duration of this Contract, statutory Worker's Compensation Insurance and Employer's Liability Insurance as required under the laws of the State of Minnesota. 8. COMPREHENSIVE GENERAL LIABILITY. Contractor shall obtain the following minimum insurance coverage and maintain it at all times throughout the life of the Contract,with the City included as an additional name insured on the general liability insurance on a primary and noncontributory basis. The Contractor shall furnish the City a certificate of insurance satisfactory to the City evidencing the required coverage: Bodily Injury: $2,000,000 each occurrence $2,000,000 aggregate products and completed operations Property Damage: $2,000,000 each occurrence $2,000,000 aggregate Contractual Liability(identifying the contract): Bodily Injury: $2,000,000 each occurrence Property Damage: $2,000,000 each occurrence $2,000,000 aggregate Comprehensive Automobile Liability(owned, non-owned,hired): Bodily Injury: $2,000,000 each occurrence $2,000,000 each accident Property Damage: $2,000,000 each occurrence 9. WARRANTY. The Contractor guarantees that all new equipment warranties as specified within the quote shall be in full force and transferred to the City upon payment by the City. The Contractor shall be held responsible for any and all defects in workmanship,materials,and equipment which may develop in any part of the contracted service,and upon proper notification by the City shall immediately replace,without cost to the City,any such faulty part or parts and damage done by reason of the same in accordance with the bid specifications. 10. INDEMNITY. The Contractor agrees to indemnify and hold the City harmless from any claim made by third parties as a result of the services performed by it. In addition,the Contractor shall reimburse the City for any cost of reasonable attorney's fees it may incur as a result of any such claims. 11. PERFORMANCE AND BID BONDS. Performance and Bid bonds are required for this project for 5%of the contract price. The form of the bonds must satisfy statutory requirements for such bonds. 12. MISCELLANEOUS. A. Terms used in this Agreement have the meanings stated in the General Conditions. B. Owner and Contractor each binds itself,its partners,successors,assigns and legal representatives to the other party hereto,its partners,successors,assigns and legal representatives in respect to all covenants,agreements,and obligations contained in the Contract Documents. C. Any provision or part of the Contract Documents held to be void or unenforceable under any law or regulation shall be deemed stricken,and all remaining provisions shall continue to be valid and binding upon Owner and Contractor,who agree that the Contract Documents shall be reformed to replace such stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provisions. D. Data Practices/Records. (1) All data created,collected,received,maintained or disseminated for any purpose in the course of this Contract is governed by the Minnesota Government Data Practices Act, Minn.Stat.Ch. 13,any other applicable state statute,or any state rules adopted to implement the act,as well as federal regulations on data privacy. (2) All books,records,documents and accounting procedures and practices to the Contractor and its subcontractors,if any,relative to this Contract are subject to examination by the City. E. Software License. If the equipment provided by the Contractor pursuant to this Contract contains software,including that which the manufacturer may have embedded into the hardware as an integral part of the equipment,the Contractor shall pay all software licensing fees. The Contractor shall also pay for all software updating fees for a period of one year following cutover. The Contractor shall have no obligation to pay for such fees thereafter. Nothing in the software license or licensing agreement shall obligate the City to pay any additional fees as a condition for continuing to use the software. F. Patented devices, materials and processes. If the Contract requires,or the Contractor desires, the use of any design,device,material or process covered by letters, patent or copyright, trademark or trade name,the Contractor shall provide for such use by suitable legal agreement with the patentee or owner and a copy of said agreement shall be filed with the Owner. If no such agreement is made or filed as noted,the Contractor shall indemnify and hold harmless the Owner from any and all claims for infringement by reason of the use of any such patented designed,device,material or process,or any trademark or trade name or copyright in connection with the Project agreed to be performed under the Contract,and shall indemnify and defend the Owner for any costs, liability,expenses and attorney's fees that result from any such infringement. G. Assignment. Neither party may assign,sublet,or transfer any interest or obligation in this Contract without the prior written consent of the other party,and then only upon such terms and conditions as both parties may agree to and set forth in writing. H. Waiver. In the particular event that either party shall at any time or times waive any breach of this Contract by the other,such waiver shall not constitute a waiver of any other or any succeeding breach of this Contract by either party,whether of the same or any other covenant, condition or obligation. Governing Law/Venue. The laws of the State of Minnesota govern the interpretation of this Contract. In the event of litigation,the exclusive venue shall be in the District Court of the State of Minnesota for Dakota County. J. Severability. If any provision,term or condition of this Contract is found to be or become unenforceable or invalid,it shall not effect the remaining provisions,terms and conditions of this Contract,unless such invalid or unenforceable provision,term or condition renders this Contract impossible to perform. Such remaining terms and conditions of the Contract shall continue in full force and effect and shall continue to operate as the parties'entire contract. K. Entire Agreement. This Contract represents the entire agreement of the parties and is a final, complete and all inclusive statement of the terms thereof,and supersedes and terminates any prior agreement(s),understandings or written or verbal representations made between the parties with respect thereto. L. Permits and Licenses;Rights-of-Way and Easements. The Contractor shall give all notices necessary and incidental to the construction and completion of the Project. The City will obtain all necessary rights-of-way and easements. The Contractor shall not be entitled to any additional compensation for any construction delay resulting from the City's not timely obtaining rights-of- way or easements. M. If the work is delayed or the sequencing of work is altered because of the action or inaction of the Owner,the Contractor shall be allowed a time extension to complete the work but shall not be entitled to any other compensation. OWNER: Pine Bend Paving. BY: —.� BY: Its:Mayor Its: AND Its: C•ministrator 2019 Prairie Waterway Trail Replacement Ii } IIF , - I < I r ' ., __ , _ .... . , _ ..,, _ •• .: ..• • t 1 ' 1 '- i I", t, 's. I f r i „-•••• • . , - -- --- .-. •,.. .....„:„„. ,� s' ` -• r - , - r. jf r .- 7 . u .... _ _ ,. ._ __. _ �._�. _ _ #F s y �7'j IL ' rl 411, I i � I r T r.� ... _ _ ` __ _ _ _ :r! iia j 1 , r _ 1 rt , y. t if `` r Ie- ,� s ( '<y n I 110 k II1 {�^}! i I , . r _ n as o—$ ' - t I ,dia t I I INF 11 i 7i - ' 1 ' 'II alai 1. August 27, 2019 1:4,800 0 225 450 900 ft 1 r t i i i 0 65 130 260 m Property Information Disclaimer:Map and parcel data are believed to be accurate,but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search,appraisal,survey,or for zoning verification. CITY OF 0430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 ®1� O FarmingtonMN.gov __ _.._._._ TO: Mayor, Councilmembers and City Administrator FROM: Tom Hoffman SUBJECT: Award Contract For 2019 Mill and Overlay Projects-Public Works DATE: September 3, 2019 INTRODUCTION As part of the city's street maintenance program the city annually inspects roads to identify areas that need maintenance. One of the options for restoration is a mill and overlay, especially in areas experiencing scaling. Several stretches throughout the city have been identified as needing to either have the top layer of pavement replaced, or the entire section of road removed and replaced. DISCUSSION One bid was received for the overlay project and was presented at the August 12, 2019 City Council work session. Based on the favorable pricing received, the city council concurred with staff to maximize the overlay work within the amount allocated for the 2019 season. Staff worked with MN Paving& Materials,the sole bidder,to increase the area of work. Two additional street segments were added to the project and are shown in the attached map. The final contract amount to complete the work is$979,865.17 BUDGET IMPACT Funding for this project is identified in the Street Maintenance Fund. ACTION REQUESTED Award the 2019 Mill and Overlay contract to MN Paving& Materials in the amount of$979,865.17 and authorize the Mayor and City Administrator execute the same. ATTACHMENTS: Type Description D Exhibit 2019 Pavement I mprovement Map a Exhibit 2019 Elk River Trl& Egret Way Map D Contract 2019 Pavement Improvement Contract . r ..-' ''1,1,- -A. ,., '„ • „. - , - ' - ' ' , z :,-...---: ..•:,..„ 4,,,,.,,1 ,:. • . _ H. og • *. .1,,,,A.. .., t.„4, ,, i* ,, 1 iv, „-,t."."•-4;:-.11-'. '-.1t; .[i] , s ;,, ' • . ' , ' s' •• ' — § '-'° t '''S' ''' '''4'1' . 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'' ''..-'-'. *4'4 ''''- i ."‘ i't' 7" r 445. ,•._ _L;.N.-,•,-, y 51. . t_., _,t. , , ` X ..,- . ,, - _ . 4 ,,,ir i -: , c_41-.?ittt ,i .:. „- - e' ' * * t. . -:* 445 - ., s �: .ar * ' r i � u� : s •# tx A, .,,„-, .., - r. x x x ,.. .4° '7-'*.i'ill,:*"447:'';'A'''4:',..1 .-1 il ' ' ' l'',.ti'r :,--------"-Ilk- .** ' .M. ' 'S... 4'144_ 11'4...------$7r* U .# ► a 4P J 0 ''4/ t ., ,,„''''' j,, '''' .4* ,.....4146' 4.1 —4. ei,7 , .,e. - ' -- ,, „34° 4 , _... --.._ _ _ . 1, ,,,,,, IF,c „,„ v .., . ... A... , ... "IP` ;',1, ji 4 „,,?1, ) ', , „ r -...!„,,,,its. ,..., , . ._, 4„, 1.1 w „} rv.n} tlr f-i •! .k r 4 �y M14" 4 dria" ` �+ g .,}r�""+rr 0 .416 It ' s .,,7.-1-`1 I--r4 r • �. . :� 7. � t s , ,....,*41,1! � ,. �", ,� j''''''. ,' '1`11" J3 „,,,,., ,..„, _. ti „ - - 'f-ilrii/)1' 4 • , • 1 _ ,.„�„ x .wa N"*,-..�. _ ”` Aw AGREEMENT BETWEEN OWNER AND CONTRACTOR FOR CONSTRUCTION CONTRACT THIS AGREEMENT is by and between The City of Farmington ("Owner")and MN Paving&Materials ("Contractor"). Owner and Contractor hereby agree as follows: ARTICLE 1 --WORK 1.01 Contractor shall complete all Work as specified or indicated in the Contract Documents.The Work is generally described as follows: The furnishing of all labor, materials,tools,and equipment necessary to complete the street reclamation and paving operations. ARTICLE 2—THE PROJECT 2.01 The Project, of which the Work under the Contract Documents is a part, is generally described as follows: Miscellaneous Pavement Rehabilitation Project for the City of Farmington,City Project 19-10. ARTICLE 3—ENGINEER 3.01 The Project has been designed by WSB&Associates, Inc.d/b/a WSB. 3.02 The Owner has retained WSB & Associates. Inc. d/b/a WSB ("Engineer") to act as Owner's representative, assume all duties and responsibilities,.and have the rights and authority assigned to Engineer in the Contract Documents in connection with the completion of the Work in accordance with the Contract Documents. ARTICLE 4--CONTRACT TIMES 4.01 Time of the Essence A. All time limits for Milestones,if any,Substantial Completion,and completion and readiness for final payment as stated in the Contract Documents are of the essence of the Contract. 4.02 Contract Times:Dates A. The Work will be substantially completed on or before October 25,2019. 4.03 Liquidated Damages A. Contractor and Owner recognize that time is of the essence as stated in Paragraph 4.01 above and that Owner will suffer financial and other losses if the Work is not completed and Milestones not achieved within the times specified in Paragraph 4.02 above, plus any extensions thereof allowed in accordance with the Contract. The parties also recognize the delays, expense, and difficulties involved in proving in a legal or arbitration proceeding the actual loss suffered by Owner if the Work is not completed on time.Accordingly, instead of requiring any such proof, Owner and Contractor agree that as liquidated damages for delay (but not as a penalty); 1. Substantial Completion: Contractor shall pay Owner$500 for each day that expires after the time(as duly adjusted pursuant to the Contract)specified in Paragraph 4.02.A above for Substantial Completion until the Work is substantially complete. 2. Completion of Remaining Work:After Substantial Completion,if Contractor shall neglect, refuse,or fail to complete the remaining Work within the Contract Time(as duly adjusted pursuant to the Contract)for completion and readiness for final payment,Contractor shall MISCELLANEOUS PAVEMENT REHABILITATION PROJECT AGREEMENT CITY OF FARMINGTON,MN CITY PROJECT NO.19-10 WSB PROJECT NO.R-014194-000 PAGE 1 pay Owner$1,000 for each day that expires after such time until the Work is completed and ready for final payment. 3. Liquidated damages for failing to timely attain Substantial Completion and final completion are not additive and will not be imposed concurrently. ARTICLE 5--CONTRACT PRICE 5.01 Owner shall pay Contractor for completion of the Work in accordance with the Contract Documents the amounts that follow,subject to adjustment under the Contract: A. For all Unit Price Work, an amount equal to the sum of the extended prices (established for each separately identified item of Unit Price Work by multiplying the unit price times the actual quantity of that item).The Contractor's Bid, attached hereto as an exhibit,provides the basis for the extended prices for the Unit Price Work.The extended prices for Unit Price Work set forth as of the Effective Date of the Contract are based on estimated quantities.As provided in Paragraph 13.03 of the General Conditions, estimated quantities are not guaranteed, and determinations of actual quantities and classifications are to be made by Engineer. Total of all Extended Prices for Unit Price Work(subject to final adjustment based on actual quantities) ARTICLE 6—PAYMENT PROCEDURES 6.01 Submittal and Processing of Payments A, Contractor shall submit Applications for Payment in accordance with Article 15 of the General Conditions.Applications for Payment will be processed by Engineer as provided in the General Conditions. 6.02 Progress Payments;Retainage A. Owner shall make progress payments on account of the Contract Price on the basis of Contractor's Applications for Payment on or about the 25th day of each month during performance of the Work as provided in Paragraph 6.02.A.1 below, provided that such Applications for Payment have been submitted in a timely manner and otherwise meet the requirements of the Contract.All such payments will be measured by the Schedule of Values established as provided in the General Conditions(and in the case of Unit Price Work based on the number of units completed)or,in the event there is no Schedule of Values,as provided elsewhere in the Contract. 6.03 Final Payment A. Upon final completion and acceptance of the Work in accordance with Paragraph 15.06 of the General Conditions,Owner shall pay the remainder of the Contract Price as recommended by Engineer as provided in said Paragraph 15.06. ARTICLE 7—CONTRACTOR'S REPRESENTATIONS 7.01 In order to induce the Owner to enter into this Contract, Contractor makes the following representations: A. Contractor has examined and carefully studied the Contract Documents, and any data and reference identified in the Contract Documents. B. Contractor has visited the Site,conducted a thorough,alert visual examination of the Site and adjacent areas, and become familiar with and is satisfied as to the general, local, and Site conditions that may affect cost,progress,and performance of the Work. C. Contractor is familiar with and is satisfied as to all Laws and Regulations that may affect cost, progress,and performance of the Work. D. Contractor has carefully studied all: (1) reports of explorations and tests of subsurface conditions at or adjacent to the Site and all drawings of physical conditions relating to existing MISCELLANEOUS PAVEMENT REHABILITATION PROJECT AGREEMENT CITY OF FARMINGTON,MN CITY PROJECT NO.19-10 WSB PROJECT NO.R-014194-000 PAGE 2 surface or subsurface structures at the Site that have been identified in the Supplementary Conditions, especially with respect to Technical Data in such reports and drawings, and (2) reports and drawings relating to Hazardous Environmental Conditions, if any, at or adjacent to the Site that have been identified in the Supplementary Conditions,especially with respect to Technical Data in such reports and drawings. E. Contractor has considered the information known to Contractor itself; information commonly known to contractors doing business in the locality of the Site; information and observations obtained from visits to the Site; the Contract Documents; and the Site-related reports and drawings identified in the Contract Documents,with respect to the effect of such information, observations,and documents on(1)the cost,progress,and performance of the Work;(2)the means,methods,techniques,sequences,and procedures of construction to be employed by Contractor and(3)Contractor's safety precautions and programs. F. Based on the information and observations referred to in the preceding paragraph,Contractor agrees that no further examinations, investigations, explorations, tests, studies, or data are necessary for the performance of the Work at the Contract Price,within the Contract Times, and in accordance with the other terms and conditions the Contract. G. Contractor is aware of the general nature of work to be performed by Owner and others at the Site that relates to the Work as indicated in the Contract Documents. H. Contractor has given Engineer written notice of all conflicts, errors, ambiguities, or discrepancies that Contractor has discovered in the Contract Documents, and the written resolution thereof by Engineer is acceptable to Contractor. I. The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work. J. Contractor's entry into this Contract constitutes an incontrovertible representation by Contractor that without exception all prices in the Agreement are premised upon performing and furnishing the Work required by the Contract Documents. ARTICLE 8—CONTRACT DOCUMENTS 8.01 Contents A. The Contract Documents consist of the following: 1. This Agreement 2. Performance bond 3. Payment bond 4. General Conditions 5. Supplementary Conditions 6. Specifications as listed in the table of contents of the Project Manual. 7. Drawings(not attached but incorporated by reference) 8. Addenda 9. Exhibits to this Agreement: a. Contractor's Bid b. Non-Collusion Affidavit. c. Responsible Contractor Verification and Certification of Compliance Form. d. Notice to Bidders—Bidder's Acknowledgement. 10. The following which may be delivered or issued on or after the Effective Date of the Contract and are not attached hereto: a. Notice to Proceed. MISCELLANEOUS PAVEMENT REHABILITATION PROJECT AGREEMENT CITY OF FARMINGTON,MN CITY PROJECT NO.19-10 WSB PROJECT NO.R-014194-000 PAGE 3 1 b. Work Change Directives. c. Change Orders. d. Field Orders. B. The documents listed in Paragraph 9.01.A are attached to this Agreement (except as expressly noted otherwise above). C. There are no Contract Documents other than those listed above in this Article 9. D. The Contract Documents may only be amended, modified, or supplemented as provided in the General Conditions. ARTICLE 9—MISCELLANEOUS 9.01 Terms A. Terms used in this Agreement will have the meanings stated in the General Conditions and the Supplementary Conditions. 9.02 Assignment of Contract A. Unless expressly agreed to elsewhere in the Contract, no assignment by a party hereto of any rights under or interests in the Contract will be binding on another party hereto without the written consent of the party sought to be bound;and,specifically but without limitation,money that may become due and money that is due may not be assigned without such consent (except to the extent that the effect of this restriction may be limited by law), and unless specifically stated to the contrary in any written consent to an assignment,no assignment will release or discharge the assignor from any duty or responsibility under the Contract Documents. 9.03 Successors and Assigns A. Owner and Contractor each binds itself,its successors, assigns,and legal representatives to the other party hereto, its successors, assigns, and legal representatives in respect to all covenants,agreements,and obligations contained in the Contract Documents. 9.04 Severability A. Any provision or part of the Contract Documents held to be void or unenforceable under any Law or Regulation shall be deemed stricken,and all remaining provisions shall continue to be valid and binding upon Owner and Contractor,who agree that the Contract Documents shall be reformed to replace such stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provision. 9.05 Contractor's Certifications A. The provisions of MINN. STAT. 16C.285 Responsible Contractor are imposed as a requirement of this Contract.This Contract may be terminated by the Owner at any time upon discovery by the Owner that the prime contractor or subcontractor has submitted a false statement under oath verifying compliance with any of the minimum criteria set forth in the Statute. B. The provisions of MINN.STAT.471.425,subdivision 4a.are imposed as a requirement of this Contract. 1. Each contract of a municipality must require the prime contractor to pay any subcontractor within ten days of the prime contractor's receipt of payment from the municipality for undisputed services provided by the subcontractor. The contract must require the prime contractor to pay interest of 1-1/2 percent per month or any part of a month to the subcontractor on any undisputed amount not paid on time to the subcontractor.The minimum monthly interest penalty payment for an unpaid balance of $100 or more is$10.For an unpaid balance of less than$100,the prime contractor shall pay the actual penalty due to the subcontractor.A Subcontractor who prevails in a civil MISCELLANEOUS PAVEMENT REHABILITATION PROJECT AGREEMENT CITY OF FARMINGTON,MN CITY PROJECT NO.19-10 WSB PROJECT NO.R-014194.000 PAGE 4 action to collect interest penalties from a prime contractor must be awarded its costs and disbursements, including attorney's fees,incurred in bringing the action. MISCELLANEOUS PAVEMENT REHABILITATION PROJECT AGREEMENT CITY OF FARMINGTON,MN CITY PROJECT NO.19-10 WSB PROJECT NO.R-014194-000 PAGE 5 IN WITNESS WHEREOF,Owner and Contractor have signed this Agreement. This Agreement will be effective on 9/3/2019 (which is the Effective Date of the Contract). OWNER: CONTRACTOR: City of Farmington MN Paving&Materials By: _ By: Title: Mayor Title: (If Contractor is a corporation, a partnership, ora joint venture, attach evidence of authority to sign.) Attest: i / Attest: Title: City Administrator Title: Address for giving notices: Address for giving notices: of.-6 p� /4zvf�iSs�g7�ov� ,/30 %-A,,' S?re t v License No.: (where applicable) Of Owner is a corporation, attach evidence of authority to sign. If Owner is a public body, attach evidence of authority to sign and resolution or other documents authorizing execution of this Agreement.) MISCELLANEOUS PAVEMENT REHABILITATION PROJECT AGREEMENT CITY OF FARMINGTON,MN CITY PROJECT NO.19-10 WSB PROJECT NO.R-014194-000 PAGE 6 CITY OF O 430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 III O FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Adam Kienberger, Community Development Director SUBJECT: Adopt Ordinance Amending Title 2, Chapter 11, Section 3 of the Farmington City Code Regarding the Heritage Preservation Commission Powers and Duties- Community Development DATE: September 3, 2019 INTRODUCTION At the August 12, 2019 City Council Work Session, direction was given to prepare ordinance language to re-establish the functions of the Heritage Preservation Commission (H PC). Upon review of the existing ordinance, and in consultation with the City Attorney, please find attached recommended language amending the existing H PC ordinance. The amendment provides the City Council the ability to assign the powers and duties of the H PC to the Planning Commission. This will allow action to be taken on required permits without removing the City Council's ability to appoint a separate commission in the future if they so choose. Staff recommends the attached language for approval along with a subsequent resolution assigning the powers and duties of the HPC to the Planning Commission. DISCUSSION The city has been without an active H PC since 2017. The City Council, as part of the 2017 budget process, eliminated all funding(including commission stipends and consultant fees)for the HPC. The city established a heritage preservation program with the adoption of a historic preservation ordinance in 1992. The 1992 ordinance also created the city's first Heritage Preservation Commission. The H PC historically consisted of five members appointed by the City Council and met bi-monthly. The H PC is charged with (among other things) carrying out the design review provisions contained in the city's preservation ordinance(Chapter 11 of Title 2 of the city code). This requires mandatory review of applications for certain types of permits affecting significant heritage resources. The HPC is empowered to advise property owners on exterior changes, alterations, and other improvements to designated heritage landmarks. The H PC also works in conjunction with the Planning Commission on development projects that involve heritage resources. BUDGET IMPACT NA ACTION REQUESTED Adopt the attached ordinance amending Title 2, Chapter 11, Section 3 of the Farmington City Code regarding the Heritage Preservation Commission powers and duties. ATTACHMENTS: Type Description Ordinance Amending Title 2, Chapter 11, a Ordinance Section 3 of the Farmington City Code regarding the Heritage Preservation Commission Powers and Duties. CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA ORDINANCE NO. 019—7 4 7 AN ORDINANCE AMENDING TITLE 2, CHAPTER 11, SECTION 3, OF THE FARMINGTON CITY CODE CONCERNING THE HERITAGE PRESERVATION COMMISSION POWERS AND DUTIES THE CITY COUNCIL OF THE CITY OF FARMINGTON ORDAINS: SECTION 1. Title 2 - Boards and Commissions, Chapter 11 - Heritage Preservation Commission, Chapter 3 -Heritage Preservation Commission Powers and Duties,is hereby amended by adding the underlined language as follows: 2-11-3: HERITAGE PRESERVATION COMMISSION POWERS AND DUTIES: (A) Members: The City of Farmington Heritage Preservation Commission(hereinafter the "HPC") shall consist of up to five (5) voting members, adult residents of the City, to be appointed by the City Council. HPC members shall include professionals in the disciplines of history, architecture, architectural history, archaeology, planning, or related disciplines and such other persons as have demonstrated interest or knowledge of historic preservation. Ex officio, nonvoting members of the HPC shall include a representative of the Dakota County Historical Society, the Farmington Historical Society, and a member of the Farmington Planning Commission. As an alternative to appointing a separate Commission, the City Council may assign the powers and duties of the HPC to the Planning Commission, in which case the terms of office, organization and compensation provisions of this Chapter shall not apply and the provisions of Chapter 2 of this Title will apply, (B) Terms Of Office: All appointments for voting members shall be made for a term of three (3) years. Members may be reappointed. Term expiration shall be staggered so that no more than three (3) positions shall be filled each year. Members shall continue to hold office until their successors have been appointed. (Ord. 015-687, 2-2-2015) (C) Organization: The HPC shall elect from its members such officers as it may deem necessary. The HPC shall have the power to designate and appoint from its members various committees. The HPC shall make such bylaws as it may deem advisable and necessary for the conduct of its affairs, for the purpose of carrying out the intent of this chapter, which are not inconsistent with the laws of the City and the State. (D) Program Assistance: To accomplish the intent and purpose of this chapter, the City shall provide the HPC with staff support and technical assistance. (E) Powers And Duties: Unless otherwise specified herein, the powers and duties of the HPC shall be as follows: 1 204085v1 1. Conduct a continuing survey of historic properties in the City which the HPC has reason to believe are or will be eligible for designation as Farmington heritage landmarks. 2. Nominate properties for designation as heritage landmarks. 3. Review and comment upon permit applications and plans relating to heritage landmarks. 4. Increase public awareness of historic preservation and historic properties. 5. Make recommendations to the City Council concerning grants and gifts from Federal and State agencies, private groups and individuals and the utilization of budgetary appropriations for historic preservation programs. 6. Prepare a comprehensive historic preservation plan for the City. 7. Make an annual report containing a statement of its activities and plans to the City Council. 8. Any other functions which may be designated by ordinance or motion of the City Council. (Ord. 099-422, 2-16-1999) (F) Compensation: Effective February 1, 2018, members shall receive thirty dollars ($30.00) per meeting attended in addition to reasonable personal expenses. (Ord. 018-738, 3-19- 2018) SECTION 2. This Ordinance shall become effective immediately upon its passage and publication according to law. PASSED and ADOPTED this 3"''day of ,4�2019, by the City Council of the City of Farmington, Minnesota. CITY OF FARMINGTON By. ' ------- Todd Larson, Mayor ATTEST: By: avid Mc ig�ht, ay Administrator Approved as to form the day of J( .__ e • ip gip. By: ..i.-�t= City Atto Summary published in the Dakota County Tribune on the /314 day of 7` 2019. 2 204085v1 CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA SUMMARY ORDINANCE NO. 019-74 7 AN ORDINANCE AMENDING TITLE 2, CHAPTER 11, SECTION 3, OF THE FARMINGTON CITY CODE CONCERNING THE HERITAGE PRESERVATION COMMISSION POWERS AND DUTIES NOTICE IS HEREBY GIVEN that, on September 3, 2019, Ordinance No. 019-74 7 was adopted by the City Council of the City of Farmington, Minnesota. NOTICE IS FURTHER GIVEN that, because of the lengthy nature of the ordinance,the following summary of the ordinance has been prepared for publication. This ordinance amends Title 2, Chapter 11 of the city code stating as an alternative to appointing a separate HPC Commission, the City Council may assign the powers and duties of the HPC to the Planning Commission, in which case the terms of office, organization and compensation provisions of this Chapter shall not apply and the provisions of Chapter 2 of this Title will apply. A printed copy of the ordinance, in its entirety, is available for inspection by any person during the city's regular office hours and is posted on the city's website. APPROVED for publication by the City Council of the City of Farmington, Minnesota,this 3`d day of September, 2019. CITY OF FARMINGTON By. - Todd Larson, Mayor ATTEST: By: ( f avid Mc fight, Ci Administrator Approved as to form the day o4 2019. By. City Attorney Published in the Dakota County Tribune the /_344 day of G 2019. CITY OF O430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Adam Kienberger, Community Development Director SUBJECT: Adopt Resolution Assigning the Powers and Duties of the Heritage Preservation Commission to the Planning Commission-Community Development DATE: September 3, 2019 INTRODUCTION At the August 12, 2019 City Council Work Session, direction was given to prepare ordinance language to re-establish the functions of the Heritage Preservation Commission (H PC). Upon review of the existing ordinance, and in consultation with the City Attorney, staff recommended language amending the existing H PC ordinance.The amendment provides City Council the ability to assign the powers and duties of the H PC to the Planning Commission.This will allow action to be taken on required permits without removing the City Council's ability to appoint a separate commission in the future if they so choose. Staff recommends adopting the attached resolution assigning the powers and duties of the H PC to the Planning Commission. DISCUSSION The city has been without an active H PC since 2017. The City Council, as part of the 2017 budget process, eliminated all funding(including commission stipends and consultant fees)for the H PC. The city established a heritage preservation program with the adoption of a historic preservation ordinance in 1992. The 1992 ordinance also created the city's first Heritage Preservation Commission. The H PC historically consisted of five members appointed by the City Council and met bi-monthly. The H PC is charged with (among other things) carrying out the design review provisions contained in the City's preservation ordinance(Chapter 11 of Title 2 of the city code). This requires mandatory review of applications for certain types of permits affecting significant heritage resources.The H PC is empowered to advise property owners on exterior changes, alterations, and other improvements to designated heritage landmarks. The HPC also works in conjunction with the Planning Commission on development projects that involve heritage resources. BUDGET IMPACT NA ACTION REQUESTED Adopt the attached resolution assigning the powers and duties of the Heritage Preservation Commission to the Planning Commission per Title 2, Chapter 11, Section 3 of the Farmington City Code regarding the Heritage Preservation Commission. ATTACHMENTS: Type Description D Resolution HPC Resolution RESOLUTION NO. R34-1 9 RESOLUTION ASSIGNING THE POWERS AND DUTIES OF THE HERITAGE PRESERVATION COMMISSION TO THE CITY PLANNING COMMISSION 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 3rd day of September 2019 at 7:00 p.m. Members Present: Larson, Bernhj elm, Craig, Donnelly, Hoyt Members Absent: None Member Hoyt and Member Bernhj elm introduced and seconded the following: WHEREAS,the Heritage Preservation Commission("HPC") is created by City Ordinance with members appointed by the City Council and assigned certain Powers and Duties regarding Heritage Preservation and Historic Properties within the City; WHEREAS,the City Council determined that it was in the best interest of all parties to assign the powers and duties of the HPC to the Planning Commission. NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Farmington that City, pursuant to City Code 2-11-3, hereby formally assigns the powers and duties of the HPC to the Farmington Planning Commission. ADOPTED this 3rd day of September, 2019, by the City Council of the City of Farmington. CITY OF FARMINGTON Toe d arson,Mayor Attested to the 2 day of September 2019. 42 . Da ' cKnight, it Ad istrator SEAL 204087v1 CITY OF O 430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 —Ivr1�� O FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Jennifer Gabbard, Human Resources Director SUBJECT: Approve Position Adjustment-Human Resources DATE: September 3, 2019 INTRODUCTION The purpose of this memorandum is to provide information and request approval for a salary change for Lonell Johnson, a Building I nspector with our Community Development Department. DISCUSSION Succession planning is a strategy engaged by organizations to identify and develop new leaders who can replace leaders when they leave or retire. These efforts entail developing internal people with the potential to fill key business leadership positions in the organization. As an employer, we want to reward those successors who continue to develop and learn. We also want to keep our active employees engaged, and retain them so that certain positions within the city have a succession plan that aligns with planned retirements and recruitment efforts. Finally, filling these types of positions has proven to be difficult in recent years due to the limited number of qualified individuals. Lonnie started with the city on July 18, 2016. As of December 2017, Lonnie has completed the Building Official certification and is now a licensed Building Official, in addition to our Chief Building Official, Ken Lewis. This allows him to assume the duties and authority of our Chief Building Official in his absence, along with conducting commercial inspections and plan review. Lonnie has been continuously learning, coming from the trades sector, and he has done an exceptional job becoming familiar with every kind of inspection, especially commercial inspections. In an effort to continue succession planning efforts with Lonnie, we would like to provide him with three additional steps within his salary range. Unfortunately, the Building Inspector and Building Official salary ranges are consecutive in our compensation plan. If they were not consecutive, we would have been able to have a Senior Building Inspector position. Therefore, in order to recognize Lonnie's efforts and advanced qualifications, we would like to move him from his current step 2, to step 5, within the current salary range of Building Inspector, C41.The salary for Step 2 is $71,364.80, and he would move to step 5, $76,348. This equates to an increase for Lonnie for$4,983.20 per year. BUDGET IMPACT The current budget of the Community Development Department can support this increase. ACTION REQUESTED Approve the salary changes for Mr. Lonell Johnson, effective on September 9, 2019. CITY OF O 430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 ®IIIlO�� O FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Jennifer Gabbard, Human Resources Director SUBJECT: Approve Appointment Recommendation Information Technology-Human Resources DATE: September 3, 2019 INTRODUCTION The recruitment and selection process for the appointment of the Network Administrator position has been completed. DISCUSSION After a thorough review by the City Administrator, and the Human Resources Department, a contingent offer of employment was provided to Mr. Peter Gilbertson, subject to the ratification by Council, as all other conditions have been met. Mr. Gilbertson is currently the IT Generalist for Allen Interactions based in Mendota Heights, MN. His experience meets the qualifications for this position. BUDGET IMPACT Mr. Gilbertson's starting salary will be$82,450 annualized, which is the sixth step in the salary range for the Network Administrator position. His start date is August 30, 2019. Funding for this position is authorized in the 2019 budget. ACTION REQUESTED Approve the appointment of Peter Gilbertson effective on or about August 30, 2019. CITY OF 430 Third St, Farmington, MN 55024 FARMINCTON 0 651-280-6$o0 FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Teah Malecha, Finance Director SUBJECT: Acknowledge Financial Review for the Month Ending June 30, 2019-Finance DATE: September 3, 2019 INTRODUCTION Staff reviews the financial performance of the General Fund and several other funds with the city council quarterly review. 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 2019, budgeted General Fund revenues total$11,763,538. During the first half of the year the city recorded General Fund revenues totaling$5,777,770 or 49 percent of total budgeted revenues. Property taxes represent the majority 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 their portion in June and December. The city received the first installment from the county in June. 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. Over the past few years the city has strengthened its fund balance and is 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 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. Permit revenue includes building,plumbing, heating, electric, etc. permits. The revenue for the first half of 2019 is lower for this time period than last year. The larger amount in 2018 was due to the permit issued for Trinity Care Center. The city has issued 280 building permits in 2019 compared to 243 in 2018. Plumbing, heating, and electric permits are down at 223 in 2019 versus 238 in 2018. Intergovernmental revenue includes local government aid (LGA), municipal state aid (MSA)maintenance, police and fire aid, etc. The city received the first half of the MSA maintenance funds for 2019. The second half will be received in July.A portion of the first half of LGA was received. The remainder will be paid in July and December. Police and fire aid has not been received. 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. Fine revenue is received the following month. It is trending slightly higher than in 2018. 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. It has been trending higher than 2018. 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 payment was received. The remainder will be paid the third and fourth quarters. Expenditures Finance tracks expenditures by department. The following notes explain significant or unusual variations from last year or actual versus budgeted amounts which vary a bit from the expected 50 percent(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 over 2018 due to the hiring of custodial staff and purchase of cleaning equipment. Finance is trending higher in 2019 due to the timing of the audit invoices. There are additional expenditures in Human Resource due to a staff retirement in 2019. The part-time salaries for fire are trending higher than the first half of 2018. Natural resources is much lower in 2018 due to the position being vacant for a portion of the year. Street material costs have increased in 2019 over 2018. The city experienced more snowfall in 2019, than in 2018. As a result the 2019 snow removal expenditures are higher this year than last. Park Maintenance expenditures are trending higher as the majority of the costs are incurred in the summer months. Overall, General Fund expenditures, excluding transfers, are at 48 percent of budget for the first half of the year. EDA, Park Improvement, and Arena The 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. EDA The EDA revenues were higher in 2018 as it included the receipt of funds related to a CDBG grant for a building roof completed. Expenditures are higher in 2019 due to the addition of the Dakota Broadband (DBB) initiative. Park Improvement Fund The Park Improvement fund received a farm lease payment in first quarter. The Bike Pedestrian Plan expenditures are included along with the grant funding revenue for the plan. The equipment for Prairie Pines Park and Marigold Park are included in expenditures for 2019. Arena Revenues are slightly lower than in 2018 due to the timing of payments received. Expenditures are trending higher at 48 percent for the first half of the year. There have been higher maintenance costs in 2019. Liquor Operations The city has two financial benchmarks for its liquor operations. The first is a 25 percent gross profit margin. For the first half of the year both stores exceeded the gross profit margin target. The second standard is a 6 percent profit as a percent of sales. This is evaluated on a combined basis. For the first half, the stores reached 6.3 percent. The 2019 results are slightly behind last year's pace,which was 6.7 percent through the first half. The percentage is generally the lowest the first half of the year. 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: sanitary sewer, solid waste, storm water,water, and street lighting. The rates were increased on the sanitary sewer, solid waste, storm water, and water for 2019. Sanitary Sewer For the first half of 2019 revenues trended higher than 2018. There was an increase in MCES (Metropolitan Council Environmental Services) fees. 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 expenditures also include the box for one of the new plows. The chassis was paid for in 2018. Solid Waste For the first half of 2019 solid waste expenses exceeded revenues. Expenditures included the new compactor and hook lift. The chassis were paid for in 2018. Storm Water Revenues exceeded expenditures during the first half of 2019. The expenditures for 2018 were drastically higher due to the purchase of the street sweeper. Water The development fees for Fairhill and Sapphire Lake were received in the second quarter of 2019. The expenditures are drastically higher in 2019 due to the construction for Well 9 and the water tower refurbishment. The bond proceeds are also listed as part of the Transfer In for Water. 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 Review and acknowledge the financial reports for month ended June 30, 2019. ATTACHMENTS: Type Description D Backup Material General Fund YTD Ended June 30, 2019 D Backup Material General Fund Chart YTD Ended June 30, 2019 D Backup Material Special Revenue Funds YTD Ended June 30, 2019. D Backup Material Liquor Stores YTD Ended June 30, 2019 Ci Backup Material Utility Funds YTD Ended June 30, 2019 General Fund June 2019 YTD Operating Report June YTD Quarter 1 Quarter 2 June YTD June YTD Actual June YTD YTD Act Company Actual Actual Actual Actual Budget 2019 Budget Variance Comments 2018 2019 2019 2019 2019 as%of Bud 2019 Revenues �T Property Taxes 4,932,440 0 5,080,238 5,080,238 9,808,308 (4,728,070) 52% Taxes are received semi-annually. 1st half was received in June. Licenses 27,795 23,267 8,665 31532 50,350 (18,418) 63% Includes liquor,beer&wine,club arcade,massage,gambling,animal,etc.2019 higher due to 3 liquor licenses being paid in full upfront. Permits 208,173 42,924 102,691. 145,615 346,060 (200,445) 42% Includes building,plumbing and heating,electric,etc.permits.Permit revenues are lower than 2018 due to Trinity Care permit issued in early 2018. Intergovernmental Revenue 128,423 116,447 88,772 205,220 892,265 (687,045) 23% Includes Local Government Aid(LGA),Municipal State Aid(MSA)Maintenance,Police and Fire Aid,etc.Recd 1st half of MSA for road maintenance(2nd half will be in July).A portion of the first LGA payment rec'd.Remainder will be received in July and December. Police and Fire Aid not received until the fall. Charge for Service 179,234 74,033 91,118 165,150. 438,880 (273,730) 38% Includes fire,recreation,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 occurred.Recreation programs are primarily held in the summer.School resource officer is billed quarterly. Fines 27538 13,397 15,163 28,560 42,000 (13,440) 68% Fine revenue received a month late,e.g.January received in February. Investment Interest 26,950 24,649 12,342 36,992 21,900 15,092 169% Intestment earnings attributable to General Fund's proportionate share of investment balances. Miscellaneous 23,194 12,838 13,997 26,835 43,775 (16,940) 61% Includes Sr Center,City Hall rental income,and donations. Franchise Fees 58,856 0 57,229 57,229 120,000 (62,771) 48% 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. Subtotal Revenues 5,612,604 307,555 5,470,215 5,777,770 11,763,538 (5,985,768) 49% Expenditures Legislative 28,394 14,365 16,036 30,401 96,447 (66,046) 32% Administration 122,147 61,888 69,128 131,016 295,214 (164,198) 44% Elections 3,402 0 23 23 35,867 (35,844) 0% Costs for 2019 will be maintenance costs only. Communications 55,612 26,406 26,381. 52,788 99,650 (46,862) 53% Higher benefit costs from 2018. City Hall 93,509 89,116 64,400 153,517 354,144 (200,627) 43% Higher costs in 2019 for custodial staff and cleaning equipment. Finance and Risk Mgmt 345,390 174,952 198,705 373,657 739,736 (366,079) 51% Higher costs first half of the year due to audit invoices being paid. Human Resource 147,483 80,614 109,279 189,893 336,447 (146,554) 56% Additional salary costs due to employee retirement and increased IT costs in 2019. Police Administration 396,235 248,948 239,315 488,263 873,339 (385,078) 56% On a combined basis Police Admin,Patrol,and Investigations are 49.2%. Patrol Services 1,372,128 639,124 653,928 1,293,053 2,738,524 (1,445,471) 47% On a combined basis Police Admin,Patrol,and Investigations are 49.2%. Investigations 319,847 201,989 214,288 416,277 856,544 (440,267) 49% On a combined basis Police Admin,Patrol,and Investigations are 49.2%. Emergency Management 108 54 (11) 43 11550 (11507) 0% Fire 377,561 213,440 241,314 454,753 1,267,885. (813,132) 36% Increased salaries from 2018. Engineering 285,693 144,388 167,783 312,171 624,587 (312,416) 50% Higher benefit and IT costs from 2018. Planning 219,803 100,108 138,733 238,841 521,062 (282,221) 46% Higher salary and benefit costs from 2018. Building Inspection 192,130 99,085 105,384 204,469 387,828. (183,359) 53% Higher salary costs from 2018. Natural Resources 12,853 25,530 35707 55237 122,583'. (66,346) 46% Position vacant the 1st qtr of 2018. Streets 469,759 242,613 284,215 526,828 1,146,492 (619,664) 46% Higher salary,benefit,and street material costs from 2018. Snow Removal 177,693 180,441 30,680 211,121 227,064 (15,943) 93% Sand,salt,vehicle parts,and staff time were higher than a year ago. Park Maintenance 312,209 149,516 197,013 346,530 671,357 (324,827) 52% Majority of the costs are in the summer. Rambling River Center 77,212 41550 45392' 82,342 182,287 (99,945) 45% Park&Rec Admin 119,516 64,599 65685 134,284. 271,145, (136,861) 50% Recreation Programs 42,710 10,615 33,643 44,258 106,804 (62,546) 41% Majority of programming is in the summer. Interest Paid.._ 0 0 0 0 0 0 '.. Bad Debt Expense 0 0 0 0 0 Subtotal Expenditures 5,171,393 2,809,744 2,931,021 5,740,765 11,966,656 (6,225,891) 48% Revenues(Over)Under Expenditure 441,211. (2,502,189) 2,539,195 37,005 (203,118) 240,123 (18)% Other Financing Transfers In 598,188 311,064 311,064 622,128 1,244,256 (622,128) 50% Transfers Out (495872) (505285) (385285) (885569) (1541,138) 155569 85% Includes$245000 debt levy reduction. Subtotal Other Financing 98,316 (189,221) (74,221). (263,441) 203,118 (466,559) (130)% Net Change in Fund Balance 539,527 (2,691,410) 2,464,974'. (226,436) 0 (226,436) IL I I i � f o ■ • • Z a .4_, a L.. ■ - OU ,, I, w • . . Mims' - .� a) w . I... w cy) w .. * • • C a) 11 O C . 05 75 m u S • • w a g C .8 Cll e. L ILL u • � C R 73 Fxy C 0 ., >, G: n T • RS L 1 U c� L ■ Q L o I • CC� • • LL 1 C o O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O c' O O O O O OO O O O O O O O O - . O. O. O O- O OO.- OOOOOO O O O OOO O O O O O O OO O O O LCO LO O inOL° CI- L° 6 f� f� CO CO �' d' CO- M N N 1- N 69 69 ft 09- H} Ef} Ef} Ef} ff� in 63 Cr} 69 Eft aauaies pun j ui a6uego EDA, Park Improvement,Arena June 2019 YTD Operating Report June YTD Quarter 1 Quarter 2 June YTD June YTD Actual June YTD YTD Act Company Actual Actual Actual Actual Budget 2019 Budget Variance Comment 2018 2019 2019 2019 2019 as%of Bud 2019 EDA ..,.�. EDA Revenues 24,226 1,674 1,706 3,380 2,300 1,080 147% Higher revenues in 2018 due to pass-through CDA grant. EDA Expenses 21,553 20,291 8,637 28,928 51,427 (22,499) 56% Increased expenses due to Dakota Broadband. EDA Net 2,674 (18,617) (6,931) (25,548) (49,127) 23,579 52% Revenues/Expenditures Transfers In 0 12,500 12,500 25,000 50,000 (25,000) 50% Transfers Out (1,425) (713) (713) (1,425) (2,850) 1,425 50% Transfer to Trident TIF district for Dakota County TIF maintenance fees Subtotal Other Financing (1,425) 11,787 11,787 23,575 47,150 (23,575) 50% Net Change in EDA Fund 1,249 (6,830) 4,857 (1,973) (1,977) 4 100% Balance Park Improvement ' - - - t't.Y '''N'' Park Improvement 161,694 13,898 63,366 77,265 27,800 49,465 278% Higher revenues in 2018 for park dedication fees. Revenues Park Improvement 32,010 14,232 127,233 141,465 307,500 (166,035) 46% Prairie Pines and Marigold Park equipment. Expenditures Park Improvement Net 129,684 (334) (63,866) (64,200) (279,700) 215,500 23% Change in Fund Balance Ice Arena " xwtlq seeca, TI b.,r:d P'a's' -i! _'''`'� fi""r* 11 , ,i ' „.i`".. wo ,:' + h Ice Arena Revenues 144,902 126,794 9,014 135,809 356,100 (220,291) 38% Revenue lower than 2018-collected a month later Ice Arena Expenditures 162,087 106,747 63,755 170,501 352,744 (182,243) 48% Higher equipment maintenance costs and employee benefits than 2018. Ice Arena-Rev Over (17,184) 20,048 (54,740) (34,692) 3,356 (38,048) (1,034)% (Under)Expenditures Ice Arena-Transfers In 0 0 0 0 0 0 Ice Arena-Transfers Out 10,000 0 0 0 0 0 No arena capital transfer in 2019. Ice Arena Net Transfers (10,000) 0 0 0 0 0 Ice Arena Net Change in (27,184) 20,048 (54,740) (34,692) 3,356 (38,048) (1,034)% Fund Balance U) 03 L o r 3 Tcta t 8 >. j. 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DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED Approve the attached payments. ATTACHMENTS: Type Description D Backup Material Check Register 8/1/19-8/28/19 0 C0000 a a m 0) m 0) 0) CO 010000300 CO N N N f0 m m N N 0 00000000 0 0 0 O 0 0 0 O a O a o o O o O O cu ❑ a 0 a 0 0 0 a a moo o m to 0 0 0 0 o CD o 0 CD 0 0 0 a a M - a a a a a O a a a) O a a 0) a a a a a a a a a O a O O O a O O N O O O O O M O) O O M a O O O O N CO a r o O N r uj n CO a CO O n CO D) o CO o c0 Co CO O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 a 6 a_ 0 co Z N m o _O o m N to U ~ ¢~¢ U U ~ m a U U U U o a o w 0 0 0) 0 ¢ 0 Q z w 0 0 0 z 0 0 z z z z z z z a z z a ZZZZ a ¢ o ¢ ¢ ¢ w ¢ 0 >- ¢ ¢ 0 } ¢ W Q W O o >- H < I= < < < Z F- Z Z Z H Z ZZZ z Z H z H H z ¢ w w w ¢ w z w z ¢ w ¢ w w w w w w w w o Fw- K H FW- FW- Z IH a H H H a H H a I- a 'a Z W Z z Z ¢ z N g z z m g z ¢ Z ¢ W u) g a a a > > a a 0- a 2 ¢ Q a Q 0 0 O0 0 'v Q R H ¢ 3 o Q Q o ¢ F, Q F. 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N Q re ce L L IL Q W Z re Q U cC J �Q„ Q a. 9 C7 0 0 0 0 Z C 3 Q =O 0 40 w = Q L cu fa it z Li n m wdy ZW3v U U U O U z O U ° 0 U 03 ~ w > CS a 0o w wwwwww co w m W W W W W W W W W W000 (LD 0 LO M C m m U) a) Q) a) T Q) C) 0 a) a) a) a1 a) 0) a) m O L H co13 d Z z z Z Z Z OC J J J J J J 0 e Ceo Na. co , , -J -3 7 7 7 7 7 -3 -3 -3 O_ CO ce O a) co co <r N CO 4 N- CO CO CO m 'V' sf m CO V O)) O0 m N m N 0 CO CO ' M N m CO N '0 M 0 N d 0- o NiV N O m a1 f0 M m cd W m V7' O m O O h CO O NY C')') CO0M co N N N >O E NI- � CO m r N c CO COo E V a) m a) 3 =o0 5- 0 0 E N N N -L `0 CO u) COCO C. 0 a- CO e- a) 0 0o 00 00 CO E co Y a a) 0 U m co mco LO o 0 m m a) CL Z O O O 0 N N N CITY OF 430 Third St., Farmington, MN 55024 FARM I GT 1 0 651-280.6$40 ... ~ F; FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Teah Malecha, Finance Director SUBJECT: Preliminary 2020 General Fund Budget and Tax Levy DATE: September 3, 2019 INTRODUCTION State statute requires that the proposed property tax levy for the upcoming year be certified to Dakota County on or before September 30th each year. The city council is being asked to adopt the 2020 proposed property tax levy which will be included in the proposed property tax statements that are mailed to taxpayers in November. DISCUSSION The city council discussed the 2020 General Fund budget and tax levy at work sessions in June, July, and August. The proposed budget and tax levy are shown below. 2020 Proposed Increase 2019 Budget Budget (Decrease) Revenues $ 3,199,486 $ 3,406,372 6.47% Expenditures 13,007,794 13,637,563 4.84 Fiscal Disparities 2,225,003 2,240,813 0.71 General Fund Levy 7,583,305 7,990,378 5.37 Debt Levy 3,212,460 2,805,387 (12.67) Net Tax Levy $ 10,795,765 $ 10,795,765 0.00% The proposed 2020 General Fund budget and tax levy includes increases in human resources and benefit costs for four union contracts and the non-union employee group. Funding is also included for one new position of an Assistant Police Chief. General Fund Revenues The General Fund has revenues outside of the tax levy. These revenues come from a variety of sources. The draft 2020 budget includes revenue increases of 6.47 percent, going from$3,199,486 in 2019 to $3,406,372 in 2020. Revenue details are included in the attached revenue summary sheet. Revenue items of note in the draft 2020 budget: • Building permit and plumbing and heating permit revenues are projected to increase by$75,100. The 2020 budget accounts for the recent approvals of three new plats. • Local Government Aid received from the State of Minnesota will increase by$13,649 to $328,374 in 2020. This increase goes into the Transfers budget, specifically trail maintenance. Department Budgets The proposed 2020 department budgets are summarized below. 2020 Proposed Increase 2019 Budget Budget (Decrease) Administration $ 881,322 $ 907,162 2.93% Human Resource 336,447 349,226 3.80 Finance&Risk Management 739,736 781,389 5.63 Police 4,480,057 4,677,813 4.41 Fire 1,267,885 1,445,410 14.00 Community Development 906,890 1,018,418 12.05 Engineering 747,170 794,635 6.35 Municipal Services 1,373,556 1,439,078 4.77 Parks&Recreation 1,231,593 1,278,576 3.81 Transfers 1,041,138 945,856 (9.15) Total Expenditures $13,007,794 $ 13,637,563 4.84% The significant department budget changes for Fire and Community Development are due to the new positions of the Deputy Fire Chief and Community Development Specialist in 2019. The positions were funded for a partial year starting July 1, 2019. Fiscal Disparities This is a metro wide program that is used to balance the development of commercial and industrial growth through the region. The financial plan takes a conservative approach to budgeting this amount until the final number is received. Debt Levy The debt levy represents the amount of tax levy needed to meet the city's 2020 debt repayment obligations. The 2020 debt levy is 12.67 percent lower than the 2019 debt levy. The reduction in debt is due to the final payments for two bond issuances and one interfund loan in 2020. Detail on the debt levy obligations is included with this memo. Additional Notes There are still a number of items that are unfunded or underfunded that the city council is aware of including: • Pavement Management • Trail Maintenance • Building Maintenance Projects • Fleet Replacements The estimated market value of the average residential home in Farmington increased 6.55 percent from$253,265 in 2019 to $269,847 in 2020. The increase is lower than the increase of 8.31 percent from 2018 to 2019. BUDGET IMPACT The budget impact is summarized with the content of this memo. ACTION REQUESTED Hear the presentation that will be made by city staff and ask any questions you may have. Once the city council is comfortable, a motion should be made to: • Adopt the attached resolution establishing the 2020 preliminary tax levy as proposed • Set the public input meeting prior to the adoption of the final 2020 budget and tax levy for Monday, December 2, 2019 at 7:00 p.m. ATTACHMENTS: Type Description D Resolution 2020 Preliminary Levy Resolution D Backup Material 2020 General Fund Budget Summary D Backup Material 2020 General Fund Revenue Summary D Backup Material 2020 General Fund Expenditure Summary D Backup Material 2020 Debt Levy RESOLUTION NO. R35_1 9 A RESOLUTION APPROVING THE 2019 PROPOSED TAX LEVY COLLECTIBLE IN 2020 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 3rd day of September 2019 at 7:00 p.m. Members Present: Larson, Bernhj elm, Craig, Donnelly, Hoyt Members Absent: None Member Donnelly and Member Hoyt introduced and seconded the following: WHEREAS, Minnesota State Statute currently in force requires certification of the proposed tax levy to the Dakota County Auditor on or before September 30, 2019; and WHEREAS,the City Council of the city of Farmington, Minnesota is in receipt of the proposed 2020 revenue and expenditure budget. WHEREAS,the City Council shall use existing City revenues to meet the annual debt obligations for 2013A GO Improvement Refunding Bond $31,468; thereby reducing the total debt levy issued and collected from property taxes of$669,000. NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council of the city of Farmington that the following sums of money be levied in 2019, collectible in 2020, upon the taxable property in said city of Farmington for the following purposes: General Fund $10,231,191 Debt Levy + $2,805,387 Gross Levy $13,036,578 Fiscal Disparities - $2,240,813 Net Tax Levy $10,795,765 This resolution was adopted by recorded vote of the Farmington City Council in open session on the 3rd day of September 2019. Todd Larson, Mayor Attested to on the 3' ''day of Septembecr12019. (- ipv i : w- ii Da ' McKnight, Ci y dmin' rator SEAL 2020 BUDGET Summary of Debt Service levy to be attached and become part of this resolution R35-1 9 Fund Project Levy Amount 3091 2013A GO Improvement Refunding Bond $669,000 3093 2015A GO Improvement Bond $307,000 3094 2016A GO Refunding Bond $352,000 3136 2016B GO Refunding Bond $665,000 3138 2019A GO Street Reconstruction Bond $229,950 Total Bond Financing $2,222,950 3130 2005C GO Capital Improvement Bond $166,000 3097 2010A GO Improvement Bond $400,000 3300 2010D GO Equipment Certificates $16,437 Total Debt Levy $2,805,387 The amount levied is less than the required amounts from the payment schedule for some of the bonds. The bonds are listed on Form B which is part of this resolution. The city has sufficient sources to pay the bonds. 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(46.91)% Miscellaneous 43,775 54,580 24.68% 55,200 1.14% Transfers In 1,244,256 1,307,570 5.09% 1,359,896 4.00% Total Revenues 3,199,486 3,406,372 6.47% 3,420,818 0.42% Expenditures Administration 881,322 907,162 2.93% 1,020,599 12.50% Human Resource 336,447 349,226 3.80% 361,870 3.62% Finance and Risk Mgmt 739,736 781,389 5.63% 832,609 6.55% Police 4,480,057 4,677,813 4.41% 5,127,590 9.62% Fire 1,267,885 1,445,410 14.00% 1,602,687 10.88% Community Development 908,890 1,018,418' 12.05% 1,062,026 4.28% Engineering 747,170 794,635 6.35% 836,023 5.21% Municipal Services 1,373,556 1,439,078 4.77% 1,515,144 5.29% Parks and Recreation 1,231,593 1,278,576 3.81% 1,349,770 5.57% Transfers Out 1,041,138 945,856 (9.15)% 1,078,292 14.00%, Total Expenditures 13,007,794 13,637,563 4.84% 14,786,610 8.43% Revenues Over(Under)Expenditures (9,808,308) (10,231,191) 4.31% (11,365,792) 11.09% Fiscal Disparities 2,225,003 2,240,813 0.71% 2,235,003 (0.26)% General Fund Levy 7,583,305 7,990,378 5.37% 9,130,789 14.27% Debt Levy Bonds 2,550,783 2,222,950 (12.85)% 2,176,827 (2.07)% 2005C Loan Repay-Storm Water Tr Adv 166,000 166,000 0.00% 275,000 65.66% 2010A Loan Repay-Storm Water Tr Adv 495,677 400,000 (19.30)% 292,253 (26.94)% 2010D Loan Repay-Storm Water Tr Adv 240,000 16,437 (93.15)% 0 (100.00)% Total Debt Levy 3,452,460 2,805,387 (18.74)% 2,744,080 (2.19)% Use of Fund Balance to Lower Debt Levy (240,000) (100.00)% Net Debt Levy 3,212,460 2,805,387 (12.67)% 2,744,080 (2.19)% Farmington Net Tax Levy 10,795,765 10,795,765 0.00% 11,874,869 10.00% General Fund Detailed Non-Property Tax Revenue Summary 2018 Budget, 2019 Budget, 2020 Proposed and 2021 Proposed Object 2018 2019 2020 2021 Account Budget Budget Proposed Proposed LIQUOR LICENSES 1 40,700 42,000 41,700 40,700 BEER&WINE LICENSES 1,750 1,750 1,100 1,100 CLUB LICENSES 500 500 500 500 MASSAGE LICENSE 50 150 350 150 GAMBLING LICENSE/PERMIT 200 250 450 450 OTHER LICENSE&PERMIT 1,500 1,700 1,900 1,800 ANIMAL LICENSES 4,000 4,000 4,080 4,080 Licenses 48,700 50,350 50,080 48,780 BUILDING PERMITS 300,000 272,400 330,000 325,000 REINSPECTION FEES 800 1,000 1,000 1,000 CODE ENFORCEMENT FEES 1 1,000 2,600 2,300 PLUMBING&HEATING PERMITS 30,000 35,000 52,500 50,000 SEWER PERMITS 5,000 5,000 5,000 5,000 ELECTRIC PERMITS 14,000 18,000 16,000 16,000 ISTS PERMITS 250 250 300 300 EXCAVATING PERMITS COUNTY SEPTIC FEE UTILITY PERMITS 6,130 6,130 6,420 6,500 SIGN PERMITS 570 570 620 600 BURNING PERMITS 1,710 1,710 1,425 1,500 OTHER PERMITS 3,250 5,000 7,000 5,500 Permits 361,711 346,060 422,865 413,700 Licenses and Permits 410,411 396,410 472,945 462,480 FEDERAL GRANT 0 0 5,000 5,000 LOCAL GOVERNMENT AID 313,640 314,725 328,374 314,725 MSA MAINTENANCE 215,000 215,000 215,000 215,000 POLICE AID 190,400 196,000 198,500 198,000 POST TRAINING 15,371 15,160 15,160 15,160 FIRE AID 134,461 137,910 137,910 142,490 STATE GRANT 0 0 9,000 MARKET VALUE CREDIT 0 0 COUNTY MISCELLANEOUS 17,764 13,470 13,350 13,400 Intergovernmental 886,636 892,265 922,294 903,775 CUSTOMER SERVICES NONTAXABLE 350 250 200 250 ZONING&SUBDIVISION FEES 1,250 2,000 3,050 2,600 ADMINISTRATION FEES-PROJECTS 450 4,000 4,500 4,000 FIRE CHARGES 228,000 225,780 232,553 239,377 POLICE SERVICE CHARGES 75,000 77,000 78,030 79,590 ENGINEERING FEES-PROJECTS 0 EROSION&SEDIMENT CONTROL 12,000 9,900 8,100 8,500 G.I.S.FEES 0 0 0 RECREATION FEES-GENERAL 93,000 90,000 85,000 85,000 RECREATION FEES-SENIOR CTR 18,000 18,000 19,000 19,000 MEMBERSHIP FEES-SENIOR CTR 9,000 9,000 8,000 8,000 MOBILE MEALS-SENIOR CTR 0 ADVERTISING 750 750 950 750 ADVERTISING 2,200 2,200 1,800 1,800 FRANCHISE FEE 120,000 120,000 120,000 120,000 Charges For Services 560,000 558,880 561,183 568,867 COURT FINES 35,000 42,000 49,000 50,000 Fines&Forfeitures 35,000 42,000 49,000 50,000 INTEREST ON INVESTMENTS 31,000 21,900 38,800 20,600 GAIN/LOSS INVEST MKT VALUE 0 Page 1 of 2 General Fund Detailed Non-Property Tax Revenue Summary 2018 Budget, 2019 Budget, 2020 Proposed and 2021 Proposed Object 2018 2019 2020 2021 Account Budget Budget Proposed Proposed Investment Income 31,000 21,900 38,800 20,600 MISCELLANEOUS REVENUE 5,000 5,000 1,500 1,500 CASH OVER&SHORT 0 RENTAL INCOME-RRC 22,000 22,000 20,880 22,000 RENTAL INCOME 16,775 16,775 31,700 31,700 DONATIONS 0 0 500 USE OF FUND BALANCE TO LOWER DEBT LEVY 0 0 0 Misc Revenue 43,775 43,775 54,580 55,200 OPERATING TRANSFERS 1,196,376 1,244,256 1,307,570 1,359,896 Transfers In 1,196,376 1,244,256 1,307,570 1,359,896 Total Revenues $3,163,198 $3,199,486 $3,406,372 $3,420,818 Page 2 of 2 General Fund Expenditure Detail Summary 2018 Budget,2019 Budget 2020 Proposed and 2021 Proposed Company 2018 2019 2020 2021 Budget Budget Proposed Proposed Expenditures Administration Legislative(1005) 89,379 96,447 87,772 89,915 Historical Preservation(1006) 0 0 0 Administration(1010) 366,550 295,214 302,068 433,592 Elections(1013) 35,821 35,867 44,124 15,585 Communications(1014) 109,341 99,650 108,537 105,971 City Hall(1015) 224,395 354,144 364,661 375,536 Administration 825,486 881,322 907,162 1,020,599 Human Resources 330,831 336,447 349,226 361,870 Human Resource(1011) 330,831 336,447 349,226 361,870 Human Resources 330,831 336,447 349,226 361,870 Finance and Risk Management Finance(1021) 566,015 569,926 611,579 659,469 Risk Management(1022) 166,480 169,810 169,810 173,140 Finance and Risk Management 732,495 739,736 781,389 832,609 Police Police Administration(1050) 850,566 873,339 1,235,377 1,402,182 Patrol Services(1051) 2,750,258 2,738,524 2,538,727 2,789,897 Investigations(1052) 843,859 856,544 892,059 923,861 Emergency Management(1054) 6,650 11,650 11,650 11,650 Police 4,451,333 4,480,057 4,677,813 5,127,590 Fire Fire(1060) 1,188,352 1,267,885 1,445,410 1,602,687 Rescue(1061) 0 0 Fire 1,188,352 1,267,885 1,445,410 1,602,687 Community Development 801,427 908,890 1,018,418 1,062,026 Planning(1030) 433,575 521,062 591,133 626,252 Building Inspection(1031) 367,852 387,828 427,285 435,774 Community Development 801,427 908,890 1,018,418 1,062,026 Engineering Engineering(1070) 568,573 624,587 665,173 702,611 Natural Resources(1076) 136,901 122,583 129,462 133,412 Engineering 705,474 747,170 794,635 836,023 Municipal Services Streets(1072) 1,085,798 1,146,492 1,197,200 1,265,428 Snow Removal(1073) 227,377 227,064 241,878 249,716 Municipal Services 1,313,175 1,373,556 1,439,078 1,515,144 Parks and Recreation Park Maintenance(1090) 653,873 671,357 700,111 735,021 Rambling River Center(1093) 177,225 182,287 190,822 198,936 Park&Rec Admin(1094) 264,004 271,145 287,925 306,436 Recreation Programs(1095) 112,861 106,804 99,718 109,377 Swimming Pool(1097) 74,733 0 Parks and Recreation 1,282,696 1,231,593 1,278,576 1,349,770 Transfers Out 999,744.00 1,041,138.00 945,856.00 1,078,292.00 Transfers Out 999,744.00 1,041,138.00 945,856.00 1,078,292.00 Total Expenditures 12,631,013 13,007,794 13,637,563 14,786,610 o o O O Ln O N t() N N N 1--- a -a t0 to N 0 0 t() u) L) O) O a) CO N 0 c) a) O co A N N CO M CO 0 N : O 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O O N O L "O N a C r r r r r 0 CO M M co C) r try N y v v Tr v v M Nw Oo'O co tD m to QM 0 a`—' to oo. ,- 0 0 C N O O N N -a O O O OO O to O O O O O N .a O O 0 O O O QO C O V O M = V a0 0 O,- C N O O N N -a O O p o o O Ea y— O O O O O O co M"a O tp O 10 co" 0 O C (O t0 CO (O to tp O ' O L U 69 0 O 0 C N N N N N (i) v w F- u C 7 I- w Cl) C Ip 0 y Wce W W m Z IY w w n n a w X d 0 Z Q F Q Q v w C z cn a CC w z I- F a w ami ' ;,7z a cr w c O W 0 w w0 0 a) ,c rn O ° '..w w w ¢ E w a aN) - a ? Q ~¢ Q c 7 7 !r y 0 N UJ O M 7 1_ F 0 Ir (r C m z z x w y W C 2 00 10 0 y W w 0 w w 0 F a Q z C '2'. X 0 0 Z x 0 ` O it m T CC C r O m to E W o 0 o /j o to �) o �) Z CU .J t0 y A N CO iy 0 N C N 0 0 0 V d V > 0 0 N r N 0 0 IL)C‘J C N i L a s a co C F S 0 I- F- I- O CITY OF 430 Third St, Farmington, MN 55024 FARM I GTO © , 65a-28o-68o° FarmiagtonMN.gav TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: City Administrator Annual Performance Review DATE: September 3, 2019 INTRODUCTION The annual performance review of City Administrator David McKnight is traditionally held in August/September of each year to coincide with his employment anniversary date of August 29, 2011. DISCUSSION Pursuant to Minnesota Statute 13D.05, Subd, 3A, the city council may go into closed session to conduct the performance evaluation of an individual subject to their authority. The city council must summarize the conclusion of the performance review at the next regular meeting. The annual performance review will be attended by all five city councilmembers, the city attorney and the city administrator. BUDGET IMPACT NA ACTION REQUESTED A motion should be made to go into closed session to conduct the annual performance evaluation of City Administrator David McKnight as authorized by Minnesota Statute 13D.05.