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Home My WebLink About09.16.19 Council Packet CITY OF Meeting Location: FARM I N GTO N Farmington City Hall 430 Third Street Farmington, MN 55024 CITY COUNCIL REGULAR MEETING AGENDA September 16, 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 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 September 3, 2019, City Council Meeting— Administration Approved b) Approve Amendment Number Four to Shopping Center Lease Agreement— Administration Approved c) Approve City Administrator Evaluation Summary Report and Changes to Administrator Employment Agreement—Attorney Approved d) Approve Liquor License Compliance Check Violations Proposed Suspension of Liquor License—Attorney Approved e) Approve Community Solar Garden Subscription Contract Amendment Subscriber Estoppel Certificate—Community Development Pulled f) Approve Additional Staff Issued Business Credit Cards - Finance Approved g) 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) City Council 2019 Priorities Update Information Received 13. CITY COUNCIL ROUNDTABLE 14. ADJOURN CITY OF 0430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 .„,..... ... . -,„ii.E ,. O FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Admnistrator SUBJECT: Approve Minutes of the September 3, 2019 City Council Meeting-Administration DATE: September 16, 2019 INTRODUCTION Attached for your review are the minutes of the September 3, 2019 city council meeting. DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED Approve the minutes of the September 3, 2019 city council meeting. ATTACHMENTS: Type Description ❑ Backup Material September 3, 2019 City Council Minutes CITY OF FARMINGTON CITY COUNCIL MINUTES REGULAR MEETING SEPTEMBER 3, 2019 1. Call to Order Mayor Larson called the meeting to order at 7:00 p.m. 2. Pledge of Allegiance Mayor Larson led those in attendance in the Pledge of Allegiance. 3. Roll Call Present-Larson, Bernhjelm, Craig, Donnelly and Hoyt Absent-None Staff Present-Administrator McKnight, Community Development Director Kienberger, Parks and Recreation Director Distad, Public Works Director Gehler, Police Chief Rutherford, Fire Chief Elvestad, Finance Director Malecha and Attorney Jamnik. 4. Agenda Motion by Bernhjelm, second by Craig, to approve the agenda as presented. APIF, motion carried. 5. Announcements/Commendations a) Oath of Office and Badge Pinning of Fire Officers Fire Chief Elvestad introduced three firefighters who were recently promoted to new positions. Administrator McKnight swore in Deputy Chief Matt Price, Captain Brian Hanson and Lieutenant Caleb Bolton. 6. Citizen Comments None. 7. Consent Agenda Motion by Hoyt, second by Bernhjelm, to approve the consent agenda: a) Approve Minutes of the August 12, 2019 Special City Council Meeting-Administration September 3, 2019 Minutes - 1- b) Approve Minutes of the August 12, 2019 City Council Work Session-Administration c) Adopt Resolution R33-2019 Accepting a Donation from Happy Harry's Furniture to the Rambling River Center-Parks d) Approve Contract Schmitz-Maki Arena Railings Modification Project-Parks e) Award Contract for 2019 Trail Replacement-Public Works f) Award Contract for 2019 Mill and Overlay Projects-Public Works g) Adopt Ordinance 2019-747 Amending Title 2, Chapter 11, Section 3 of the Farmington City Code Regarding the Heritage Preservation Commission Powers and Duties- Community Development h) Adopt Resolution R34-2019 Assigning the Powers and Duties of the Heritage Preservation Commission to the Planning Commission-Community Development i) Approve Position Adjustment-Human Resources j) Approve Appointment Recommendation Information Technology-Human Resources k) Acknowledge Financial Review for the Month Ending June 20, 2019-Finance I) Approve Bills-Finance APIF, motion carried. 8. Public Hearings None 9. Award of Contract None 10. Petitions, Requests and Communications None 11. Unfinished Business None 12. New Business a) Preliminary 2020 General Fund Budget and Tax Levy Finance Director Malecha presented the preliminary 2020 General Fund budget and tax levy for consideration. The city council must approve the preliminary tax levy by September 30th each year. The city council discussed the 2020 General Fund budget and tax levy and work sessions in June,July and August. The proposed budget and tax levy include: September 3, 2019 Minutes -2- 2019 Budget 2020 Proposed Increase (Decrease) Budget 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 budget and tax levy includes funding for human resources and benefits costs for four union contracts and non-union staff. Funding is also included for one new position, a deputy police chief. Revenues are projected to increase 6.47% in 2020. Of note in this area are building permit revenue that is projected to increase $75,100 and local government aid that will increase by $13,649. Department budget changes for 2020 include: 2019 Budget 2020 Proposed Increase (Decrease) Budget Administration $881,322 $907,162 2.93% Human Resources $336,447 $349,226 3.80% Finance/Risk Mgmt $739,736 $781,389 5.63% Police $4,480,057 $4,677,813 4.41% Fire $1,267,885 $1,445,410 14.00% Comm Development $908,890 $1,018,418 12.05% Engineering $747,170 $794,635 6.35% Municipal Services $1,373,556 $1,439,078 4.77% Parks and Recreation $1,231,593 $1,278,576 3.91% Transfers $1,041,138 $945,856 (9.15%) TOTAL $13,007,794 $13,637,563 4.84% Malecha reviewed increased fiscal disparity amounts and the reduced amount of debt payments in 2020. Malecha reviewed areas that are still underfunded including pavement management,trail maintenance, building maintenance and more. Councilmember Donnelly was happy to see services continued to be provided with no levy increase. Thanked the city council and staff for their work on the budget and levy. September 3,2019 Minutes -3- Councilmember Craig was happy to see everyone on the same page with not increasing the tax levy. Thanked city staff for their work. Councilmember Hoyt appreciated seeing no increase in the levy. Mayor Larson reminded everyone there are still plenty of needs but supported a one-year relief from city levy increase. Motion by Donnelly, second by Hoyt,to approve resolution R35-2019 approving the 2019 proposed tax levy collectible in 2020 and setting the date for the public input on the 2020 budget and tax levy for Monday, December 2, 2019 at 7:00 p.m. APIF, motion carried. 13. City Council Roundtable Donnelly-Fall is in the air and the kids are back in school Bernhjelm-Welcomed the kids back to school and asked residents to watch for the school bus traffic. Hoyt-Welcomed the kids back to school and asked residents to watch for the school bus traffic. Gehler-Shared that the city was awarded a $275,000 grant from MnDOT to help completed the trail along Highway 3. Rutherford-Asked residents to watch for school bus traffic and be aware of young drivers in the high school area as well. Larson-Reminded residents of holiday garbage collection schedule, the September 14th Household Hazardous Waste collection event and encouraged residents to shop local. 14. Executive Session 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. Motion by Bernhjelm, second by Craig, to go into closed session to conduct the annual performance review of City Administrator David McKnight as authorized by Minnesota Statute 13D. 05. APIR, motion carried. The closed session began at 7:28p.m. Attending the closed session were all five city councilmembers,the city attorney and the city administrator. September 3, 2019 Minutes -4- 15. Adjourn Motion by Hoyt, second by Bernhjelm, to adjourn the meeting at 8:42 p.m. APIF, motion carried. Respectfully Submitted 13a4sa A IVO Kftitifht David McKnight, City Administrator September 3, 2019 Minutes -5- CITY OF O 430 Third St, Farmington, MN 55024 FARM I N GTO N © 651-280-6800 FarmingtonMN,gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Approve Amendment Number Four to Shopping Center Lease Agreement- Administration greementAdministration DATE: September 16, 2019 INTRODUCTION The city has leased space from Schwiness LLC to house the Pilot Knob Liquor Store since 2004. The city has been very happy with the partnership formed with Schwiness LLC and its Chief Manager Jon Einess. DISCUSSION Our current lease for the space occupied by the Pilot Knob Liquor Store expires on December 1, 2019. We currently pay$16 per square foot or$6,344 per month. I n discussions with Mr. Einess, he was in support of extending the current lease for three years through December 1, 2022 with no increase in the monthly rent. This is the second lease extension in a row where no increase in rent has been proposed by the owner. BUDGET IMPACT Future monthly rent payments will be incorporated into the annual budget of the Pilot Knob Liquor Store. ACTION REQUESTED The city council should ask any questions they have on this issue. Once the city council is comfortable, a motion should be made to approve amendment number four to shopping center lease agreement as presented. ATTACHMENTS: Type Description t5 Contract Agreement AMENDMENT NUMBER FOUR TO SHOPPING CENTER LEASE AGREEMENT THIS AMENDMENT NUMBER FOUR TO SHOPPING CENTER LEASE AGREEMENT ("Amendment Two") is made and entered into on September 16, 2019, by and between Schwiness, LLC (hereinafter referred to as "Landlord") a Minnesota limited liability company, and the City of Farmington("Tenant"). This Amendment amends the Shopping Center Lease Agreement between the parties as previously amended by Amendment Number One, Amendment Number Two and Amendment Number Three.Unless otherwise stated,all capitalized terms have the same meaning as in the Lease Agreement. 1. Extension of Lease Term. The Term of the Lease Agreement is extended until December 1, 2022. 2. Base Rent. The Base Rent during the period from December 1, 2019, until December 1, 2022,shall remain at$6,344,00 per month($16/square foot per year). ACCEPTED AND AGREED TO: City of Farmington Schwiness LLC Ilk By I . i n Einess Title: Adi f Title: Chief Manager CITY OF 0430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 —142=-•••••""—___ �si� ik. ® FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Joel Jamnik, City Attorney SUBJECT: Approve City Administrator Evaluation Summary Report and Changes to Administrator Employment Agreement-Attorney DATE: September 16, 2019 INTRODUCTION Please see the attached memo and update employment agreement. DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED A motion should be made to approve the summary performance evaluation, approve changes to compensation of Administrator McKnight and authorize re-execution of the Administrator employment agreement consistent with the approved changes. ATTACHMENTS: Type Description © Backup Material Memo and Employment Agreement ,, e , CAMPBELL KNUTSON PROFESSIONAL ASSOC IAT ION TO: Mayor and City Councilmembers David McKnight,City Administrator Roger N.Knutson Elliott B.Knetsch Joel J.Jamnik FROM: Joel Jamnik,City Attorney Andrea McDowell Poehler Soren M.Mattick DATE: September 6,2019 Henry A.Schaeffer,Ill Alina Schwartz Shang N.Conklin RE: City Administrator Evaluation Summary Report and Changes to Amy B.Schutt Administrator Contract James J.Mongh,1I1 Jerome M.Porter David S.Kendall Kurt S.Fischer Pursuant to the State's Open Meeting Law, Minn. Stat. Section 13D.05, Subd. 3(a), 'Phomas J.Campbell* the City Council conducted a closed meeting for approximately 60 minutes as part *Retired of its September 3rd Regular Council Meeting to evaluate the performance of City Administrator David McKnight. The Mayor and all City Councilmembers, Administrator McKnight and I attended the closed session. State law requires that,at its next open meeting,the public body shall summarize its conclusions regarding the evaluation.The following is submitted for Council review and approval as a summary of the evaluation conducted on September 3rd. City Administrator McKnight's performance review was conducted in accordance with Section VIII of the Council's By-Laws relating to the annual Administrator Review,using a standardized evaluation form distributed,filled out and returned by each Councilmember to our office prior to the evaluation meeting. As specified in the By-Laws our office tabulates the results of the evaluation without any reference to individual Councilmembers. Each Councilmember anonymously rates the Administrator as "needs improvement", "meets expectations", or "exceeds expectations"in five specific areas and in a sixth overall rating. At the meeting, the Council received a summary report from me regarding the Council evaluations. The Council evaluations indicated that Mr. McKnight was exceeding expectations of most of the Councilmembers in all evaluated categories (Leadership, Communication, Quality of Work, City Council/City Administrator Relationship, Organizational Culture, and Overall Rating) while fully meeting the expectations of the other Councilmembers in those categories. No Councilmember survey rated the Administrator as needing improvement in any area. Grand Oak C)Ilice Center! 860 Ilrne Gentian Road More specifically, four Councilmembers rated the Administrator as exceeding suite 290 expectations in leadership, communication, council/administrator relationship and Ewan,Minnesota 55121 41ain:651-452.5000 overall,while three Councilmembers rated quality of work and organizational culture as exceedingexpectations. Fax:651-234-62.37 www.ck-Iaa.com 204757v1 Page 2 September 6,2109 Mayor,Councilmembers,Administrator Following my report, Administrator McKnight provided Council with a review of his past year work activities and his efforts to meet established performance goals. He also discussed future performance goals,and discussed potential changes to the terms and conditions of his employment agreement. The Council and Administrator reaffirmed previously established goals or initiatives, which include meeting the communication and information needs of individual councilmembers, promoting economic development and improving communication and team building throughout the city.As in previous reviews,it was noted that the Council fully supports further efforts of the Administrator to exercise strong leadership in achieving Council goals and continuing to improve the organizational culture and professionalism of city staff, as well as to engage in outreach activities throughout Dakota County and the region,and enhanced communication with residents. Finally, the Council discussed changes to the Administrator's terms and conditions of employment.Again,as in previous years,it was noted that Administrator McKnight continues to be compensated less than other Dakota County Administrators or Managers,many of whom have less experience in the profession or years in their current position. The Council directed that the following compensation adjustment be presented for approval by the Council at its next regular meeting in conjunction with approval of this summary: adjust annual salary to $144,562.00 and provide$5,000 per year to deferred compensation. The change to compensation will be effective on the Administrator's Anniversary Date of August 29, 2019, and documented by re-execution of an updated employment agreement reflecting the changes. Action Requested Approve this summary of the performance evaluation, approve changes to compensation of Administrator McKnight,and authorize re-execution of Administrator contract consistent with the approved changes. Respectfully submitted, Joel J.Jamnik 204757v1 EMPLOYMENT AGREEMENT AGREEMENT made this day of August, 2018 , 2019, by and between the CITY OF FARMINGTON,a Minnesota municipal corporation("Employer"),and DAVID J.McKNIGHT("Employee"). The parties agree as follows: {Formatted:Line spacing: Double 1. POSITION.- Employer agrees to employ Employee as its City Administrator. Employee agrees to serve as City Administrator in accordance with state statutes,City ordinances and the ICMA/MCMA Code of Ethics and to perform such other legally permissible and proper duties and functions as the City Council shall from time to time assign. 2. SALARY.-Employer shall pay Employee a salary of$137,025144.562.00 per year starting August 29,20152019 and provide Employee$5,000.00 per year to deferred compensation. Employer and Employee agree that a performance review will be conducted on Employee annually.The Employer agrees to consider an increase in compensation to the Employee annually, dependent upon the results of the performance evaluation. 3. PENSION PLAN.-Employer shall contribute to PERA as required by State law for Employee or the same employer amount to an alternate pension plan,if selected by Employee, authorized by State law. 4. SENIORITY.-For purposes of employment benefits—elh,except as sick 'aeatien-lamotherwise provided in this Agreement,Employee a creditedshall be entitled to and shall accrue the same employment benefits as other non-union employee.' with Formatted:Not Highlight . . _' - Formatted:Not Highlight similar_years of • Formatted:Font 11 pt etnpleyment;service. r. Formatted:Font 11 pt 204755v1 • .1. 5. PAID TIME OFF(PTO). °, - . . • • . .• ' . • .. ,Employee shall accrue nineteen days of leave per year with a maximum total accumulation(cap)of three hundred and twenty(320)hours.When employee leaves employment,Employee shall be paid his accrued PTO leave up to the maximum total accumulation in accordance with City policies. 7. HOLIDAYS.-Employer shall provide Employee the same holidays as enjoyed by other non-union employees. 8. GENERAL INSURANCE.-Employer shall provide Employee the same group hospital,medical,dental,life and disability insurance benefits as provided to all other non-union employees. 9. DUES AND SUBSCRIPTIONS.-Employer shall budget and pay the professional dues and subscriptions for Employee which is deemed reasonable and necessary for Employee's continued participation in national,regional,state and local associations necessary and desirable for Employee's continued professional participation,growth and advancement. 10. PROFESSIONAL DEVELOPMENT.-Employer shall budget and pay necessary and reasonable registration, travel and subsistence expenses of Employee for professional and official travel, meetings and occasions adequate to continue the professional development of Employee and to adequately pursue necessary official and other committees thereof which Employee serves as a member.Employee shall use good judgment in his outside activities so he will not neglect his primary duties to the Employer.-Professional development dollars are subject to review by Council during the annual budget process. 11. CIVIC CLUB MEMBERSHIP. —Employer recognizes the desirability of representation in and before local civic and other organizations.Employee is authorized to become Formatted:Font:11 pt Formatted:Font:11 pt 204755v1 A a member of such civic clubs or organizations as deemed appropriate by Employee and Employer; and at Employer's expense. 12. AUTOMOBILE AND PHONE. —Employer shall reimburse Employee for personal use of Employee's personal automobile in accordance with IRS established rates and policies and appropriate documentation. Employer will provide Employee with a city cellular phone or an allowance of$45.00 per month at the discretion of Employee. 13. GENERAL EXPENSES. ---Employer shall reimburse Employee reasonable miscellaneous job--related expenses,which it is anticipated Employee will incur from time to time, when provided appropriate documentation. 14. HOURS OF WORK.- It is understood that the position of City Administrator requires attendance at evening meetings and occasionally at weekend meetings.It is understood by Employee that additional compensation and compensatory time shall not be allowed for such additional expenditures of time.It is further understood that Employee may absent himself from the office to a reasonable extent in consideration of extraordinary time expenditures for evening and weekend meetings at other than normal working hours. 15. TER1'IINATION BENEFITS.-In the event that Employee is terminated by the Employer during such time that Employee is willing and able to perform the duties of City Administrator,then in that event,Employer agrees to pay Employee at the time of receipt of his last pay check a lump sum cash payment equal to six(6)months aggregate salary and to continue to provide and pay for the benefits set forth in paragraph 8 for a period of six(6)months following termination.However,in the event Employee is terminated because of his malfeasance in office, gross misconduct,conviction for a felony,or conviction for an illegal act involving personal gain to Employee,then Employer shall have no obligation to pay the termination benefits. ,,Formatted:Font:11 pt Formatted:Font:11 pt 204755v1 c3 If Employer at any time during the employment term reduces the salary or other financial benefits of Employee in a greater percentage than across-the-board reduction for all non-union employees,or if Employee resigns following a formal request by Employer through its counsel that he resign,then Employee may,at his option,be deemed to be"terminated"on the effective date of Employee's resignation and the Employee shall also be entitled to receive the termination benefits set forth above. If Employee voluntarily resigns his position with Employer,Employee agrees to give the Employer thirty (30) days advance notice. If Employee voluntarily resigns his position with Employer,there shall be no termination pay due to Employee. 16. GENERAL CONDITIONS OF EMPLOYMENT.-Nothing in this Agreement shall prevent,limit or otherwise interfere with the right of Employer to terminate the services of Employee at any time, for any reason, subject only to the provisions of this Agreement and statutory requirements.Furthermore,nothing in this Agreement shall prevent,limit or otherwise interfere with the right of Employee to resign at any time from his position with Employer,subject only to the provisions of this Agreement. IN WITNESS WHEREOF, Employer has caused this Agreement to be signed and executed on its behalf by its Mayor,and Employee has signed this Agreement,in duplicate,the day and year first written above. EMPLOYER: EMPLOYEE: CITY OF FARMINGTON By: Todd Larson,Its Mayor David J.McKnight Formatted:Font 11 pt Formatted:Font 11 pt 204755v1 EMPLOYMENT AGREEMENT AGREEMENT made this , ff(oday of 50451e4 2019,by and between the CITY OF FARMINGTON, a Minnesota municipal corporation ("Employer"), and DAVID J. McKNIGHT("Employee"). The parties agree as follows: 1. POSITION. Employer agrees to employ Employee as its City Administrator. Employee agrees to serve as City Administrator in accordance with state statutes,City ordinances and the ICMA/MCMA Code of Ethics and to perform such other legally permissible and proper duties and functions as the City Council shall from time to time assign. 2. SALARY.Employer shall pay Employee a salary of$144,562.00 per year starting August 29, 2019 and provide Employee $5,000.00 per year to deferred compensation. Employer and Employee agree that a performance review will be conducted on Employee annually. The Employer agrees to consider an increase in compensation to the Employee annually, dependent upon the results of the performance evaluation. 3. PENSION PLAN.Employer shall contribute to PERA as required by State law for Employee or the same employer amount to an alternate pension plan, if selected by Employee, authorized by State law. 4. SENIORITY.For purposes of employment benefits,except as otherwise provided in this Agreement, Employee shall be entitled to and shall accrue the same employment benefits as other non-union employees with similar years of service. 5. PAID TIME OFF (PTO). Employee shall accrue nineteen days of leave per year with a maximum total accumulation (cap) of three hundred and twenty (320) hours. When 204755v1 1 employee leaves employment,Employee shall be paid his accrued PTO leave up to the maximum total accumulation in accordance with City policies. 7. HOLIDAYS. Employer shall provide Employee the same holidays as enjoyed by other non-union employees. 8. GENERAL INSURANCE. Employer shall provide Employee the same group hospital,medical, dental, life and disability insurance benefits as provided to all other non-union employees. 9. DUES AND SUBSCRIPTIONS. Employer shall budget and pay the professional dues and subscriptions for Employee which is deemed reasonable and necessary for Employee's continued participation in national, regional, state and local associations necessary and desirable for Employee's continued professional participation,growth and advancement. 10. PROFESSIONAL DEVELOPMENT. Employer shall budget and pay necessary and reasonable registration, travel and subsistence expenses of Employee for professional and official travel, meetings and occasions adequate to continue the professional development of Employee and to adequately pursue necessary official and other committees thereof which Employee serves as a member. Employee shall use good judgment in his outside activities so he will not neglect his primary duties to the Employer. Professional development dollars are subject to review by Council during the annual budget process. 11. CIVIC CLUB MEMBERSHIP. Employer recognizes the desirability of representation in and before local civic and other organizations.Employee is authorized to become a member of such civic clubs or organizations as deemed appropriate by Employee and Employer; and at Employer's expense. 204755v1 2 12. AUTOMOBILE AND PHONE.Employer shall reimburse Employee for personal use of Employee's personal automobile in accordance with IRS established rates and policies and appropriate documentation. Employer will provide Employee with a city cellular phone or an allowance of$45.00 per month at the discretion of Employee. 13. GENERAL EXPENSES. Employer shall reimburse Employee reasonable miscellaneous job-related expenses,which it is anticipated Employee will incur from time to time, when provided appropriate documentation. 14. HOURS OF WORK. It is understood that the position of City Administrator requires attendance at evening meetings and occasionally at weekend meetings. It is understood by Employee that additional compensation and compensatory time shall not be allowed for such additional expenditures of time. It is further understood that Employee may absent himself from the office to a reasonable extent in consideration of extraordinary time expenditures for evening and weekend meetings at other than normal working hours. 15. TERMINATION BENEFITS. In the event that Employee is terminated by the Employer during such time that Employee is willing and able to perform the duties of City Administrator, then in that event, Employer agrees to pay Employee at the time of receipt of his last pay check a lump sum cash payment equal to six(6)months aggregate salary and to continue to provide and pay for the benefits set forth in paragraph 8 for a period of six(6)months following termination. However, in the event Employee is terminated because of his malfeasance in office, gross misconduct, conviction for a felony,or conviction for an illegal act involving personal gain to Employee,then Employer shall have no obligation to pay the termination benefits. If Employer at any time during the employment term reduces the salary or other financial benefits of Employee in a greater percentage than across-the-board reduction for all non-union 204755v1 3 employees, or if Employee resigns following a formal request by Employer through its counsel that he resign, then Employee may, at his option, be deemed to be "terminated" on the effective date of Employee's resignation and the Employee shall also be entitled to receive the termination benefits set forth above. If Employee voluntarily resigns his position with Employer, Employee agrees to give the Employer thirty (30) days advance notice. If Employee voluntarily resigns his position with Employer, there shall be no termination pay due to Employee. 16. GENERAL CONDITIONS OF EMPLOYMENT. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of Employer to terminate the services of Employee at any time, for any reason, subject only to the provisions of this Agreement and statutory requirements. Furthetluore, nothing in this Agreement shall prevent, limit or otherwise interfere with the right of Employee to resign at any time from his position with Employer, subject only to the provisions of this Agreement. IN WITNESS WHEREOF, Employer has caused this Agreement to be signed and executed on its behalf by its Mayor, and Employee has signed this Agreement, in duplicate, the day and year first written above. EMPLOYER: EMPLOYEE: CITY OF FARMINGTON By: L7 Todd Larson, Its Mayor J. McKnight 204755v1 4 CITY OF O 430 Third St., Farmington, MN 55024 FARM I NGTON © 651-280-6800 FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Joel Jamnik, City Attorney SUBJECT: Approve Liquor License Compliance Check Violations Proposed Suspension of Liquor License-Attorney DATE: September 16, 2019 INTRODUCTION The City of Farmington Police Department conducts periodic compliance checks on all liquor retailers in the city. During the most recent compliance check three retailers sold alcoholic beverages to an underage person who was assisting the police department in conducting the compliance checks. Pursuant to City Ordinance, the city council subsequently reviews sanctions against the licensee/owner. DISCUSSION Per Farmington ordinance, there are presumed penalties for initial and repeat violations. I n these cases, the presumed penalty is a three day suspension and a $250 fine. The ordinance provides an opportunity for a public hearing. Our office has reviewed the cases and believes the presumed penalty specified in the ordinance is reasonable, and we are not recommending either an upward or downward departure from the presumed penalty. All operations are well managed and none have a history of violations or compliance problems. Our office prepared and delivered a Hearing Notice to the liquor establishments and provided an option to them to waive the hearing and sign a stipulation agreeing to the recommended suspension and penalty. All establishments have agreed to the stipulation and proposed penalty, and have signed and returned the stipulation. If the city council agrees with the recommendation and presumed penalty, it may approve the stipulations and the proposed penalties or, if not, proceed to schedule and conduct a public hearing regarding the matter at a future city council meeting. BUDGET IMPACT NA ACTION REQUESTED Our office recommends that the city council accept the stipulation and penalty payment from the three establishments and approve a three day suspension of the liquor sales as specified in the stipulations. CITY OF 0430 Third St., Farmington, MN 55024 FARMINCTON © 651-280-6800 �� , O FarmingtonMN.gov ,......., ,.. ,., TO: Mayor, Councilmembers and City Administrator FROM: Adam Kienberger, Community Development Director SUBJECT: Approve Community Solar Garden Subscription Contract Amendment Subscriber Estoppel Certificate-Community Development DATE: September 16, 2019 INTRODUCTION City Council approved a contract with Nokomis Partners in June of 2018 opting into a community solar garden subscription. Nokomis Partners is requesting an amendment to the contract as provided in the agreement, to execute a subscriber estoppel. This "certificate" is required by their financing partner, 1st Source Bank. Its purpose is to verify that the Subscriber Agreement is valid and that both the City and Nokomis Partners have not defaulted on any terms of the agreement. The city attorney has reviewed the amendment, and is comfortable with the attached language. DISCUSSION Community solar gardens and community solar subscriptions are a popular topic in Minnesota communities serviced wholly or partially by Xcel Energy. This is due in part to legislation requiring Xcel Energy(as a regulated public utility)to produce a percentage of its total retail electric sales by renewable sources. The City of Farmington (along with many other communities throughout the Metro) has been approached by several private companies seeking to partner with the city to purchase solar energy. This has the opportunity to reduce a portion of the city's electric utility bills from Xcel Energy. Municipalities tend to be desirable customers due to several factors including consistent energy usage,timeliness of payments, and inability to relocate. Community Solar Gardens create a new opportunity for local government entities to support clean energy,save on energy bills for public facilities. Because this is a subscription model,the city will not own nor be responsible for any assets.The city is able to leverage its buying power to generate a long-term cost savings via the solar garden provider. Upon entering into a subscription contract,the city would receive bill credits on its Xcel electricity bill via an agreement between Xcel and Nokomis Partners. The city would then make the subscription payment to Nokomis Partners at a discount on the value of the bill credits. Credits received and payments made to Nokomis will begin when the solar garden facilities are completed and operational later this year.The subscription is tied to several solar gardens named in the contract. The contract with Nokomis Partners utilizes the newer Value of Solar(VOS) credit which is predetermined or a known credit amount for the life of the contract. The contract offers a fixed savings rate of$0.01/kWh over a 25-year commitment(industry standard based on equipment data). This results in a$10,000-$15,000 savings each year on the city's Xcel Energy utility bills. The city attorney has reviewed the contract amendment and is comfortable with the language proposed in the attached agreement. BUDGET IMPACT TBD ACTION REQUESTED Approve the attached community solar garden subscription Subscriber Estoppel Certificate. ATTACHMENTS: Type Description D Contract CSG -Subscriber Estoppel Certificate FORM OF CSG SUBSCRIBER ESTOPPEL This Subscriber Estoppel Certificate (this "Certificate"), dated as of[ 1, 2019 is given by ("Subscriber")pursuant to each Subscription Agreement listed on Schedule A hereto (each,an"Agreement"and collectively,the"Agreements").Capitalized terms used but not defined herein have the meanings given in the Agreements. In connection with the financing of each community solar garden project referred to in the Agreements (each, a "Project" and collectively the "Projects"), each community solar garden operator identified on Schedule A (each, a "Project Company" and collectively the "Project Companies") and certain affiliates thereof are entering into certain agreements with 1st Source Bank, an Indiana corporation("Lender")and 1st Source Solar 5,LLC,a Delaware limited liability company ("Investor"). Based on the foregoing, and recognizing that Project Company, Investor and Lender will rely hereon, Subscriber hereby confirms, agrees and represents and warrants to Project Company, Investor, and Lender as follows: 1. Subscriber(i)is a public corporation and/or political subdivision of the State of Minnesota, and (ii) has all requisite power and authority to enter into and to perform its obligations hereunder and under the Agreement, and to carry out the terms hereof and thereof and the transactions contemplated thereby. 2. The execution, delivery and performance by Subscriber of each Agreement and this Certificate have been duly authorized by all necessary corporate or other action on the part of Subscriber and do not require any approvals, filings with or consents of any entity, governmental authority or person which have not previously been obtained or made. 3. Each of this Certificate and the Agreements is in full force and effect, has been duly executed and delivered on behalf of Subscriber and constitutes the legal,valid and binding obligation of Subscriber, enforceable against Subscriber in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency or similar laws affecting creditors' rights generally or general principles of equity, whether considered in a proceeding in equity or at law. 4. There is no litigation, action, proceeding or investigation pending or, to Subscriber's knowledge, threatened against Subscriber before any court or governmental authority by, against, affecting or involving any of its business or assets that would affect Subscriber's ability to carry out the transactions contemplated by any Agreement. 5. The execution, delivery and performance by Subscriber of this Certificate and each Agreement, and the consummation of the transactions contemplated hereby and thereby, will not result in any violation of, breach of or default under, any term of its formation or governance documents, or of any contract or agreement to which it is a party or by which it or its property is bound, or any applicable laws. 6. Neither Subscriber nor, to Subscriber's knowledge, Project Company is in default of any of its obligations under any Agreement or has breached any representation, warranty or covenant under any Agreement. 7. To Subscriber's knowledge, (a) no event of force majeure exists under(and as defined in) any Agreement and (b) no event or condition exists which, with the passage of time or the giving of notice or both,would constitute a default or breach by either Subscriber or Project Company or enable either party to terminate or suspend its obligations under any Agreement. 8. All representations made by Subscriber in each Agreement were true and correct as of the effective date of each Agreement and continue to be true and correct in all material respects on the date hereof.' 9. Notwithstanding anything to the contrary in each Agreement, Subscriber acknowledges that its current subscribed allocation under each Agreement is as set forth in Schedule A. 10. The Agreements, each Subscriber Agency Agreement and Consent Form, and this Certificate are the only agreements between Project Company and Subscriber with respect to the Project, and any conditions precedent to effectiveness under the Agreements have been satisfied or waived. 11. Subscriber agrees that it will not exercise any right to terminate or suspend the Agreement(s) set forth in Schedule A unless Subscriber has given Investor and Lender prior written notice(at the address in Paragraph 12 of this Certificate)of Subscriber's intent to terminate or suspend the Agreement(s), specifying the condition giving rise to such right, and the Investor and/or Lender shall not have caused to be cured the condition giving rise to such right of termination or suspension within thirty(30) days after its receipt of notice or(if longer) the periods provided for in the Agreement(s). 12. Investor and Lender shall each constitute a "Lender/Investor"pursuant to Articles 17 and 18 of each Agreement, entitled to all benefits given to such person therein, and Subscriber acknowledges receipt of the following notice address for Investor and Lender: 1st Source Bank 100 N. Michigan St South Bend, IN 46601 Facsimile: 574-235-2227 Attention: Russell Cramer Email: cramerr@lstsource.com [Signature page follows] 2 IN WITNESS WHEREOF, Subscriber has caused this Certificate to be duly executed as of the day and year first above written. SUBSCRIBER By: Name: Title: [Signature Page to Subscriber Estoppel Certificate] Schedule A -Agreements Part I.Falls Creek Garden LLC As used in this Schedule A, Part I, "Project Company" means Garden LLC, a Minnesota limited liability company, as successor in interest to Nokomis Energy LLC, a Minnesota limited liability company ("Nokomis") and Linden Subscription LLC, a Minnesota limited liability company ("Subscriber Holdings"). Subscribed Agreement SRC# AIlocation(in kW) Community Solar Garden Subscription Agreement, dated , between Nokomis and Subscriber,as assigned to Subscriber Holdings from Nokomis by that certain Subscription Assignment Agreement, dated April 26, 2019, and as further assigned to Project Company from Subscriber Holdings by that certain[Assignment and Assumption Agreement], dated [ ],201[x. CITY OF O 430 Third St., Farmington, MN 55024 FARM I N GTO N © 651"280-6800 SII s ® FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Teah Malecha, Finance Director SUBJECT: Approve Additional Staff Issued Business Credit Cards-Finance DATE: September 16, 2019 INTRODUCTION The city provides business credit cards to staff, as needed. DISCUSSION Staff recommends an additional business credit card be issued for Network Administrator Peter Gilbertson. Staff recommends the credit limit to be$2,000, which is similar to the majority of the other city-authorized staff credit cards. BUDGET IMPACT This does not affect the city budget. ACTION REQUESTED Authorize staff to add issue a city business credit card for Mr. Gilbertson with a$2,000 credit card limit. CITY OF O 430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Teah Malecha, Finance Director SUBJECT: Approve Bills-Finance DATE: September 16, 2019 INTRODUCTION Attached is the August 29 -September 11, 2019 city council check register and recently processed automatic payments for your consideration. DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED Approve the attached payments. 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O ✓ z ✓ tiJ � r 3 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: David McKnight, City Administrator SUBJECT: City Council 2019 Priorities Update DATE: September 16, 2019 INTRODUCTION The city council annually sets priorities to be carried out by the city council and city staff. In 2019,the city council spent a day discussing and setting these goals. DISCUSSION As a part of the meeting, I will review the priorities you set and provide an update on the status of these priorities. BUDGET IMPACT NA ACTION REQUESTED Hear the presentation provided to the city council and ask any questions you have.