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HomeMy WebLinkAbout10.19.20 Council Minutes CITY OF FARMINGTON CITY COUNCIL MINUTES REGULAR MEETING OCTOBER 19, 2020 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, Finance Director Malecha, Police Chief Rutherford, Parks and Recreation Director Distad, Human Resources Director Gabbard and Attorney Jamnik. 4. Agenda Motion by Hoyt, second by Craig, to approve the agenda as presented. APIF, motion carried. 5. Announcements/Commendations None 6. Citizen Comments None 7. Consent Agenda Motion by Craig, second by Bernhjelm, to approve the consent agenda: a) Approve Minutes of the October 5, 2020 City Council Meeting-Administration b) Approve Minutes of the October 12, 2020 City Council Work Session-Administration c) Adopt Resolution R44-2020 Supporting the Dakota County Capital Improvement Plan- Public Works d) Approve Easement Agreement with Verizon for the Installation of Fiber Through Daisy Knoll Park-Public Works October 19, 2020 Minutes - 1- e) Approve Tobacco License for GYT Enterprise LLC-Community Development f) Adopt Resolution R45-2020 Authorizing Participation in Livable Communities Act for 2021 to 2030-Community Development g) Acknowledge Third Quarter 2020 New Construction Report and Population Estimate- Community Development h) Approve Agreement City Hall Main Service Counter Glass Enclosure Project-Parks i) Approve Recommendation for Hire Liquor-Human Resources j) Approve Appointment Recommendation Finance-Human Resources k) Adopt Resolution R46-2020 Approving CARES Act Grant Funding and Reimbursement- Finance 1) Approve Bills-Finance APIF, motion carried. 8. Public Hearings a) Certification of Delinquent Municipal Services to 2021 Property Taxes Finance Director Malecha shared that draft notices were mailed to property owners with delinquent utility invoices as of July 31, 2020 as well as delinquent mowing invoices and code violations. Recipients were advised they could avoid certification by paying the delinquent amount in full by 2:30 p.m. on October 15, 2020. The notice also advised that the city council would consider this matter at a public hearing tonight. At the time of the notice, 502 utility accounts and unpaid invoices for mowing and code enforcement were sent. The total for the delinquent accounts was $339,860.47. The number as of today is $275,808.40. A bill for the Dakota County Library has been removed from the list. This number is similar to the previous two years. Delinquent utility accounts do not directly affect the city's budget. The city continues to pay bills on time, but experiences a significant lag in collection of its utility bills. Amounts certified this fall reflect delinquent balances through July 2020. Some of these customers have not made payments on their utility accounts since it was certified last fall. The city will not collect these amounts until the 2021 tax receipts are received in July and December 2021. This negatively affects the city's internal cash flow and negatively affects city staff time. Mayor Larson opened the public hearing. No on in attendance wished to speak on this item. Motion by Bernhjelm, second by Craig, to close the public hearing. APIF, motion carried. Motion by Hoyt, second by Bernhjelm, to adopt Resolution R47-2020 certifying the delinquent accounts as an addition to the 2021 real estate taxes of the appropriate properties. APIF, motion carried. 9. Award of Contract October 19, 2020 Minutes -2- a) Schmitz-Maki Arena Improvement Plan Parks and Recreation Director Distad presented a proposal on the continued upgrades to Schmitz-Maki Arena. Previously staff had discussed with the City Council at its July 13, 2020 work session, a request to have $200,000 in liquor store profits be transferred to the Schmitz-Maki Arena Capital Improvement Fund in order to complete a number of identified capital improvement projects. The City Council at its August 17, 2020 meeting approved spending $76,750.00 to replace the rubber flooring, which left $123,250.00 remaining from the $200,000.00 transfer. An additional project that was identified on the list of arena projects as a high priority was to replace the evaporative condenser. The evaporative condenser is a critical component of the arena's ice making system. The evaporative condenser is the only part of the refrigeration system that is located outside the building. It is responsible for removing heat from the refrigerant (ammonia) so it can be returned at a lower temperature to the chiller where it repeats the cycle of removing heat from the brine (glycol) as it returns after being circulated through the pipes in the concrete floor so ice can be made and maintained on the ice rink floor. The current evaporative condenser is 12 years old and is undersized for the current refrigeration system. It was purchased and installed in 2008 because the useful life of the previous condenser had ended. When the arena's refrigeration system was replaced from a direct system (Freon refrigerant pumped directly through pipes in the floor) to an indirect system (non-refrigerant glycol brine pumped directly through the pipes in the floor and ammonia refrigerant transfers the heat from the brine) in 2010, the condenser was not replaced. Because the current evaporative condenser is undersized,there are two significant issues that are created, which jeopardizes the ability to make and maintain the ice surface. The first is when below zero temperatures are reached outside. Because of below zero outside temperatures, staff has to run warm water over the condenser in order to keep the water inside the condenser from freezing up.The water inside the condenser is what draws the heat out of the refrigerant (ammonia). The second issue is during hot days when summer ice occurs. Because of the hotter outside temperatures staff has to run fans on the compressors and has to keep the mechanical room door open in order to keep the compressors from overheating. As the condenser has aged, these problems have only gotten worse. Replacing the undersized condenser with a correct sized condenser will eliminate these two issues. October 19, 2020 Minutes -3- Staff contacted two refrigeration companies about replacing the evaporative condenser. One of the contractors, Gartner Refrigeration, Inc provided city staff with two quotes. One quote was to install a new evaporative condenser. The second quote was to install a used evaporative condenser that they had available for sale and was less than five years old, but was still in good condition. The quotes from the two contractors for the evaporative condenser installation were as follows: Name of Vendor Quote Amount Type of Condenser Expected Life Span Cool Air Mechanical, Inc. $68,449.00 New at least 20 years Gartner Refrigeration, Inc. $80,175.00 Used 15 years Gartner Refrigeration, Inc. $117,413.00 New at least 20 years The main reason for the difference in quotes is due to Gartner Refrigeration's condenser being larger than the Cool Air Mechanical Inc.'s evaporative condenser, which results in a new support structure having to be built and installed in order to accommodate the weight of the new condenser. This means footings have to be dug and poured adjacent to the existing condenser and a new structure placed to support the weight of the new evaporative condenser. Cool Air Mechanical's condenser is able to fit on the existing steel frame support that the current condenser sits on. Cool Air Mechanical's quote includes the removal and demolition of the current condenser, which Gartner Refrigeration was proposing to vacate and leave the existing condenser on the steel frame support, so at some point the city would have to remove and dispose of it. Cool Air Mechanical, Inc.'s proposal is attached. Staff has been in contact with Cool Air Mechanical, Inc. and was assured that the new condenser is properly sized to work efficiently and handle the cooling load that is needed, especially during summer ice. If the contract is approved with Cool Air Mechanical, Inc., installation of the evaporative condenser is planned to occur sometime between mid-November to mid-December when the outside temperature is colder. Installation during this period will minimally affect the ice surface when the refrigeration system has to be shut down for the new condenser to be installed. October 19, 2020 Minutes -4- The total cost of project is $68,449.00. The liquor store profits that remain to be spent after accounting for the cost of the rubber-flooring project is $123,750.00. After the evaporative condenser project is completed, it is expected there will still be $55,301.00 remaining to complete other arena projects previously identified during the July 13, 2020 work session. Councilmember Craig asked about the size concern for the new equipment. Distad stated he would verify with the company that what they are proposing fits our needs. Councilmembers Hoyt and Donnelly expressed similar concerns. Motion by Bernhjelm, second by Hoyt, to approve a contract with Cool Air Mechanical, Inc. in the amount of$68,449 to complete the installation of the new evaporator condenser at Schmitz-Maki Arena and authorize Mayor Larson and Administrator McKnight to sign the contract contingent upon the contractor verifying that what they are proposing fits the arena system correctly. APIF, motion carried. 10. Petitions, Requests and Communications a) Schmitz-Maki Arena Floor Scrubber Parks and Recreation Director Distad presented a proposal to purchase a new floor scrubber for the Schmitz-Maki Arena. The current walk behind floor scrubber at the arena was purchased in 2005. After 15 years of use, it no longer effectively cleans the floors in the lobby, team room and restroom areas. It leaves dirty streaks on the floor and does not effectively vacuum up the water that is used to clean the floors. Because the current floor scrubber model is obsolete, it is no longer feasible to replace parts on the machine.This is the single most important piece of cleaning equipment that is used keep the floors clean at the arena. In addition, it is a time saver because it reduces the time it takes to clean the floors versus having to hand mop the floors. Staff researched the Minnesota state bid list and determined that Dalco Enterprises, Inc. was awarded the state bid for floor scrubbers. Staff is proposing to purchase a Tennant T300 floor scrubber to replace the existing floor scrubber. Tennant floor scrubbers are durable and easy to use. This model comes with a three-year parts warranty, two-year labor warranty, and a one-year battery warranty. The cost to purchase the Tennant T300 off of the Minnesota state bid list is $7,972.76 The city council is also being asked to approve a contract at tonight's meeting to replace the evaporative condenser. If the evaporative condenser replacement project were October 19, 2020 Minutes -5- approved, there would still be a remaining balance of$55,301.00 in the liquor store transfer to use for either purchasing other equipment and/or making building improvements. The cost to purchase the Tennant T300 is $7,972.76. Staff is proposing to use some of the remaining liquor store transfer funds to cover the cost of replacing the arena's floor scrubber. If approved, the remaining balance of the liquor store transfers would be reduced to $47,328.04 that is available to use for other arena projects. Councilmember Donnelly verified that the $200,000 that the city is using for arena projects is already banked liquor store profits and not General Fund dollars. Distad stated that is correct. Motion by Craig, second by Hoyt,to approve the purchase of the Tennant T300 floor scrubber from Dalco Enterprises, Inc. for$7,972.76. APIF, motion carried. 11. Unfinished Business None 12. New Business a) 2021 Medical Benefits Joint Powers Agreement Human Resources Director Gabbard presented information regarding the city's group insurance benefits and to request approval of the city's entrance into a new benefits pool for medical insurance for 2021. The memorandum outlines the health insurance options for all employees and requests approval to enter into a joint powers agreement for our medical benefits for 2021 and for the city's contribution for the non-bargaining employees. The employees include department directors, supervisors and confidential employees. Department directors, supervisors and confidential employees are non-bargaining, however all other employees are covered by a collective bargaining agreement.The city's medical benefits are contained within those agreements, All of our collective bargaining agreements are set to expire on December 31, 2021. In 2019, and for many years before that, the city was a member of the LOGIS Benefits Pool. This pool was comprised of cities that have LOGIS as their backend payroll and human October 19, 2020 Minutes -6- resources information systems vendor, but over the years, the pool has been shrinking. This ends up putting a bigger and bigger burden on those cities's that stay within the pool. On June 15, 2020, the city made the decision to leave the LOGIS Benefits Pool.The early date was selected by the LOGIS Pool per agreement, and the decision needed to be made prior to the RFP process even starting.The decision was made after consulting with many groups of employees, as there could be a significant impact in leaving a pool you have been with for years. Gabbard reported that this decision was the best decision that could have been made. In September, we received numerous bids to our Request for Proposal, some good, some even, and some not so good. In the end, we were offered three different bids that are at a cost savings of at least $100,000 from our medical benefits costs in 2020. After consulting with employees, the city has decided to go with a different benefits pool called Sourcewell. Sourcewell is a cooperative out of Staples, MN that provides purchasing power, insurance benefits and other programs for smaller cities. The League of MN Cities is a member, as are the cities of New Brighten, Roseville and St. Anthony. We went with Sourcewell for many reasons: 1. Sourcewell is a larger pool than LOGIS,which means less risk for the city 2. Sourcewell has had historically low increases year after year, because they are self-insured 3. Their plans were very similar to our own, with the same provider, HealthPartners, so the impact to employees would be less severe 4. Sourcewell provides wellness benefits to organizations and incentives to employees to participate in wellness activities Gabbard believe this outcome provides the city with the best chances to maintain lower premium costs in the future. The budget impact for 2021 is significantly lower, with an overall savings of nearly$150,000 over our current 2020 medical benefits, and has been represented in the 2021 Budget discussions. Councilmember Donnelly asked about a comment made for 2022. Administrator McKnight shared that we have a rate renewal cap for 2022 of 10%. Councilmembers Bernhjelm, Craig and Hoyt expressed their appreciation for the work on this issue. Mayor Larson asked why the LOGIS numbers are so high. Gabbard stated that the pool has been shrinking over time leaving larger claims to be paid by fewer members. October 19, 2020 Minutes -7- Motion by Hoyt, second by Craig, to approve the joint powers agreement to enter into the Sourcewell benefits pool effective January 1, 2021. APIF, motion carried. b) 2021 Ancillary Benefits Human Resources Director Gabbard reminded the city council that the city provides a number of ancillary benefits including life insurance, long-term disability insurance, short-term disability insurance and critical illness and accident insurance options through a host of third party providers. Every year the city goes through a renewal process for our benefits, both medical and ancillary. More than ever, the discussion regarding benefits is becoming a hot topic for employers. This is due to the rising cost of benefits. For 2021, our ancillary benefits are staying the same. Here is the outcome of our renewal for these benefits: 1. Dental benefits are staying with Ameritas, with no increase and no change to benefits 2. Life Insurance is staying with Sun Life, with no increase, however we are moving to the national pool, due to our decision to leave the LOGIS pool 3. Long Term Disability through Sun Life has no increase 4. Short Term Disability through Dearborn has no increase 5. Critical Accident and Illness insurances through Cigna also has no increase Gabbard is very pleased that all other benefits are remaining unchanged, both in benefits and in rates. Motion by Hoyt, second by Craig, to approve ancillary benefits for 2021. APIF, motion carried. 13. City Council Roundtable Craig-Shared that these are divisive times and asked residents to be kind to each other. We will all still be neighbors when the election is over and we need to work together as a community. Hoyt-Reminded residents that a Trunk or Treat event will take place on October 31St Bernhjelm-Thanked Councilmember Craig for her comments. Shared information on a survey that the EDA is conducting of businesses. Donnelly-Thanked Councilmember Craig for her comments. McKnight-Reminded residents of their options to vote early. October 19, 2020 Minutes -8- Kienberger-Shared information on the business survey that is currently taking place. Shared that Dakota County is offering another round of business grants. Larson-Encouraged residents to get out and vote early. Asked residents to shop local. 14. Adjourn Motion by Bernhjelm, second by Hoyt, to adjourn the meeting at 7:30 p.m. APIF, motion carried. Respectfully Submitted !VP. "C' & David McKnight, City Administrator October 19, 2020 Minutes -9-