HomeMy WebLinkAbout12.02.19 Council Minutes CITY OF FARMINGTON
CITY COUNCIL MINUTES
REGULAR MEETING
DECEMBER 2, 2019
1. Call to Order
Mayor Larson called the meeting to order at 7:00 p.m.
2. Pledge of Allegiance
Troop 116 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, Finance
Director Malecha, Public Works Director Gehler, Parks and Recreation Director Distad, Human
Resources Director Gabbard, Police Chief Rutherford and Human Resources Director Gabbard.
4. Agenda
Motion by Bernhjelm, second by Hoyt, to approve the agenda as presented. APIF, motion
carried.
5. Announcements/Commendations
a) Dakota County Commissioner Mike Slavik
Dakota County Commissioner Mike Slavik presented an update on county activities to the city
council. Some of the topics shared included property valuations, 2020 budget challenges,
continued county tax rate reductions, 2020 projects and more.
The city council thanked Commissioner Slavik for the update and his continued support of
Farmington.
6. Citizen Comments
None
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7. Consent Agenda
Motion by Bernhjelm, second by Craig, to approve the consent agenda as presented:
a) Approve Minutes of the November 18, 2019 City Council Meeting-Administration
b) Approve Agreement for Dakota Broadband Board Executive Director Cost
Reimbursement-Administration
c) Adopt Resolution R44-2019 Approving Polling Locations for 2020 Elections-Community
Development
d) Approve Community Solar Garden Subscription with Nokomis Partners Subscriber
Estoppel and Garden Conditions-Community Development
e) Approve Various License and Permit Renewals-Community Development
f) Approve Classification of the Deputy Police Chief Position-Human Resources
g) Approve Seasonal Hiring-Human Resources
h) Approve Bills-Finance
APIF, motion carried.
8. Public Hearings
a) On-Sale Liquor and Sunday Liquor License for Long Branch Saloon and Eatery and
Farmington Tap House
Mayor Larson opened the public hearing.
Administrative Assistant Mueller shared that pursuant to city ordinance 3-12-6-2, a public
hearing must be held to establish an on-sale liquor license and on-sale Sunday liquor license.
Leslie Tentis has submitted the required license and fees and application for these two licenses
for the Long Branch Saloon and Eatery and Farmington Tap House located at 309 Third Street.
The application and required documentation have been reviewed and approved by the
Farmington Police Department.
No one in attendance wished to comment.
Motion by Hoyt, second by Bernhjelm, to close the public hearing. APIF, motion carried.
Motion by Bernhjelm, second by Donnelly, to approve an On-Sale Liquor License and On-Sale
Sunday Liquor License for the Long Branch Saloon and Eatery and Farmington Tap House at 309
Third Street.
b) 2020 License Renewals
Mayor Larson opened the public hearing.
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Administrative Assistant Muller shared that per city code, a public hearing must be held to issue
or renew on-sale liquor licenses, on-sale Sunday liquor licenses, on-sale wine licenses, club
licenses and therapeutic massage licenses.
The required applications, fees and insurance information have been submitted for renewal
and have been reviewed and approved by the Farmington Police Department for the following
establishments:
On-Sale and On-Sale Sunday
Bourbon Butcher-20700 Chippendale Avenue West, Suite 15
Celts Pub and Grill-200 Third Street
El Charro Mexican Restaurant-122 Elm Street
Farmington Lanes-27 Fifth Street
Las Enchiladas-18500 Pilot Knob Road, Suite A
Long Branch Saloon and Eatery/Farmington Tap House-309 Third Street
Pizza Man-409 Third Street
Rebel Chef-953 Eighth Street
The Mug-18450 Pilot Knob Road
This Little Piggy Catering Inc.-22280 Chippendale Avenue West
Club License and On-Sale Sunday
VFW Club Post#7662-421 Third Street
On-Sale Wine and On-Sale Intoxicating Malt Liquor
Wengs Kitchen-115 Elm Street
Therapeutic Massage
Denson Malone,Touch of Soul Massage Therapy-941 Eighth Street, Suite C
No one in attendance wished to comment.
Motion by Craig, second by Hoyt,to close the public hearing. APIF, motion carried.
Motion by Bernhjelm, second by Hoyt,to approve the on-sale liquor, on-sale Sunday liquor, on-
sale intoxicating malt liquor and on-sale wine, club and therapeutic massage licenses for the
businesses listed on this item. APIF, motion carried.
9. Award of Contract
None
10. Petitions, Requests and Communications
None
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11. Unfinished Business
None
12. New Business
a) 2020 Final Budget and Tax Levy
Finance Director Malecha presented the 2020 final budget and tax levy for city council
consideration.
The city council discussed the draft 2020 General Fund budget and tax levy at work sessions in
June,July, August, and November.The proposed final budget and tax levy are shown below.
2019 Budget 2020 Proposed Increase
Budget (Decrease)
Revenues $3,199,486 $3,574,072 11.71%
Expenditures 13,007,794 13,805,263 6.13
Revenues Under Expenditures 9,808,308 10,231,191 4.31
Debt Levy 3,212,460 2,805,387 (12.67)
Gross Levy 13,020,768 13,036,578 0.12
Fiscal Disparities (2,225,003) (2,294,024) 3.10
Net Tax Levy $10,795,765 $10,742,554 (0.49%)
The city council approved the preliminary 2020 tax levy on September 3, 2019 and set the
amount at$10,795,765.The fiscal disparities number has increased over the initial 2020
preliminary numbers lowering the tax levy amount to $10,742,554.
The city is hosting the Dakota Broadband (DBB) Executive Director. As part of the interchange
agreement, all of the human resource costs for the director are paid for by the city and the city
is reimbursed by the DBB.The 2020 proposed final budget reflects the increase to revenues and
expenses for those costs which net zero. As a member of the DBB, the city incurs programming
costs. Those costs were previously accounted for in the EDA budget. For 2020,they have been
moved to the General Fund.
General Fund Revenues
The revenues for 2020 are projected to increase 11.71 percent.The majority of those increases
are accounted for in licenses and permits,fines and forfeitures, investment income, and
miscellaneous revenue.
2019 Budget 2020 Proposed Increase
Budget (Decrease)
Licenses and Permits $396,410 $473,115 19.35%
Intergovernmental Revenue 892,265 922,294 3.37
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Charge for Service 558,880 565,802 1.24
Fines and Forfeitures 42,000 49,000 16.67
Investment Income 21,900 38,800 77.17
Miscellaneous 43,775 54,580 24.68
Dakota Broadband HR 162,911
Transfers 1,244,256 1,307,570 5.09
Total Revenues $3,199,486 $3,574,072 11.71%
General Fund Expenditures
The proposed 2020 department budgets are summarized below.
2019 Budget 2020 Proposed Increase
Budget (Decrease)
Administration $881,322 $907,162 2.93%
Human Resource 336,447 349,226 3.80
Dakota Broadband 24,489
Dakota Broadband HR _ 162,911
Finance 739,736 778,889 5.29
Police 4,480,057 4,677,813 4.41
Fire 1,267,885 1,445,410 14.00
Community Development 908,890 1,014,867 11.66
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 3.81
Transfers 1,041,138 932,207 (10.46)
Total Expenditures $13,007,794 $13,805,263 6.13%
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.
The department budgets include increases to human resource and benefit costs for four union
contracts and the non-union employee group. Funding is also included for one new position of
a Deputy Police Chief.
Transfers
The transfers budget uses tax levy dollars and local government aid dollars to fund ongoing
projects in the capital improvement plan in addition to funding for the EDA, township road
maintenance, and the employee expense fund.The detailed transfers budget is attached.
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.The city continues repayment on seven other bonds.
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While the city will be issuing additional debt in 2020 and in future years, the efforts will
continue to pay for projects through a combination of debt and cash.
Other Budgets
City council and staff also reviewed and revised the budgets for other areas of the city including
special revenue funds, capital projects funds, and enterprise funds. Some of the highlights of
these budgets for 2020 include:
• Fire Capital Projects Fund -A ladder truck will be ordered in early 2020 to replace Engine
2.The city will be issuing bonds to pay for the new truck.
• General Capital Equipment Fund -The replacement of many of the fleet vehicles has
been on hold for several years. In 2020,the city will begin replacing those vehicles as
laid out in the capital improvement plan.
• Maintenance Fund - Funding for street and trail maintenance is continuing to increase
to meet the needs within the city.There will be crack sealing, seal coating, along with
mill and overlay projects in 2020.There is also trail replacement slated for next year.
• Liquor Stores-An increase of administrative support staff at the liquor stores from 0.5
FTE to 1.0 FTE is proposed.
• Water-The construction of a new water tower is slated for 2020 along with well
maintenance.A portion of the water tower will be paid for with cash and the remainder
an internal loan.
• Storm Water- Pond capacity improvements, vegetation management, and fleet
replacement are allocated for 2020.
• Sanitary Sewer-Sanitary sewer lining will continue in 2020 along with fleet
replacement.
These budgets along with the capital improvement plan were reviewed in detail at the
November 12, 2019 city council work session.
Items to Note
The city has continued to improve its financial health while developing plans for the future.
• The capital improvement plan has been revised for 2020-2024 allowing the city to
continue to develop and improve.
• The General Fund balance continues to reach the goal of 40 percent at year-end.
• The bond rating was upgraded from AA to AA+ in April.
The estimated market value of the average residential home in Farmington increased 6.42
percent from $253,204 in 2019 to$269,467 in 2020.The increase is lower than the increase of
8.31 percent from 2018 to 2019.The city tax impact to the average homeowner for 2020 is
roughly
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Councilmember Donnelly thanked Malecha for the good news and was very pleased we are
able to hold the line on taxes.
Councilmember Craig stated that great things are being accomplished while holding the line on
taxes and maintaining services.
Councilmember Hoyt stated we continue to pay down debt and prepare for the future, which is
exciting.
Mayor Larson shared that he has been looking forward to this year for a long time.
Motion by Hoyt, second by Craig, to adopt Resolution R45-2019 establishing the 2020 tax levy
and approving the 2020 budgets. APIF, motion carried.
b) Master Plan for Neighborhood Park in the Fairhill Estate at North Creek Development
Parks and Recreation Director Distad reminded the city council that on April 15, 2019 the
development agreement with MI Homes for the Fairhill Estate at North Creek was approved.
The final plat was also approved on June 3, 2019.
One of the conditions to be met by the developer was to create and provide a master plan by
the end of 2019 for the neighborhood park located in the development. Staff worked with the
developer to provide guidance in the creation of a draft master plan using city standards. The
Parks and Recreation Commission reviewed the plan on November 13, 2019 and recommended
that the developer has been made aware of.
The developer, in lieu of paying any park development fees, agreed to cover the park
improvements identified in the park master plan up to $140,000. The city secured a letter of
credit in order to ensure the improvements identified in the park master plan are completed
and are equitable with the cost of improvements in other neighborhood parks.
Motion by Bernhjelm, second by Hoyt, to approve the master plan for the neighborhood park in
the Fairhill Estates at North Creek residential development. APIF, motion carried.
c) Police Department Equipment Purchase
Police Sergeant Constantineau shared that in 2007; the Farmington Police Department
purchased all new 800 MHz radios (vehicle and portable) with a projected life span of 8-10
years. The cost for replacement radios has been included in the upcoming Police
Equipment CIP ($211,000).
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Due in part to the reliability of our current radios, and in part to budgetary restrictions, the
replacement of our radios has been delayed for several years. They are currently
scheduled to be replaced during 2020, 2021 and 2022.
Motorola has a year-end special this year that will discount our radio purchase by$14,000
if we make the purchase all at once. The cost for this equipment (26 portable and 16
vehicle) is approximately$205,000. Motorola is also offering Municipal Lease Purchase
program that would allow us to obtain the equipment now and pay for the radios over the
three years of the CIP. After reviewing with the Finance Director, the options provided by
Motorola, we recommend the option that calls for three year, semi-annual payments of
$36,950.33. The first payment is due six months from the execution of the contract, with
the remaining payments(totaling six) every six months thereafter. The finance charge for
this Lease Purchase would be approximately$14,000, very close to the savings realized
through the current Motorola incentive. To qualify for this incentive, a contract needs to
be executed by December 6, 2019.
Constantineau considered recommending that we wait to purchase the radios another two
years, but as of the end of 2019; Motorola will no longer be supporting any of our
radios. That means if there is an issue with one, and parts are no longer available, we
would be short a radio. I also considered recommending purchasing them in phases as
outlined in the CIP. While that option looks beneficial from a budgeting standpoint, it
makes managing the radios and their replacement more complicated.
Councilmember Donnelly stated it appeared the department did their homework and he
supported the purchase.
Councilmember Bernhjelm stated it makes sense to purchase the radios with this method.
Motion by Hoyt, second by Bernhjelm, to approve the purchase of new 800 MHz radios as listed
in the quote from Motorola. APIF, motion carried.
13. City Council Roundtable
Craig-Reminded residents about Toys for Town.
Hoyt-Thanked Troop 166 for attending. Reminded residents about Dazzle Day this weekend.
McKnight-Reminded residents about openings on city boards and commissions.
Kienberger-Thanked everyone who participated in Small Business Saturday.
Gehler-Shared that holiday lights can be recycled by dropping them off at city facilities.
Distad-Shared that the Secret Holiday Shop is this Saturday.
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Rutherford-Provided an update on Toys for Town and shared that they have collected enough
stuffed animals this year. In addition, donation of gift cards is a difficult for the department to
handle, cash donations are preferred.
Elvestad-Encouraged residents to shovel around fire hydrants.
Larson-Encouraged residents to shop local.
14. Adjourn
Motion by Bernhjelm, second by Hoyt, to adjourn the meeting at 7:44 p.m. APIF, motion
carried.
Respectfully Submitted
Vogerid P. 'MG Kevistkr
David McKnight, City Administrator
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