HomeMy WebLinkAbout12.07.20 Council Minutes CITY OF FARMINGTON
CITY COUNCIL MINUTES
REGULAR MEETING
DECEMBER 7, 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 and Hoyt
Absent-Donnelly
Staff Present-Administrator McKnight, Community Development Director Kienberger, Finance
Director Malecha, Police Chief Rutherford, Parks and Recreation Director Distad, Human
Resources Director Gabbard, Fire Chief Elvestad, Public Works Director Gehler, Planning
Manager Wippler and Attorney Jamnik.
4. Agenda
Motion by Hoyt, second by Craig, to approve the agenda as presented. APIF, motion carried.
5. Announcements/Commendations
a) Recognition of Outgoing City Councilmembers
Mayor Larson recognized the service of Councilmember Terry Donnelly who served on the city
council for 12 years and Councilmember Robyn Craig who served on the city council for four
years.
Councilmember Hoyt recognized the service of Mayor Larson who served as mayor for 12 years.
b) Dakota County Commissioner Mike Slavik
Dakota County Commissioner Mike Slavik presented the city council with an update on county
activities. Some of the topics covered included the county's response to COVID, a
transportation update and a 2021 budget and tax levy review. Commissioner Slavik thanked
Mayor Larson and Councilmembers Craig and Donnelly for their service to the community.
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6. Citizen Comments
a) Jake Cordes-512 Ash Street
Thanked Mayor Larson and Councilmembers Donnelly and Craig for their years of service to
Farmington.
7. Consent Agenda
Motion by Bernhjelm, second by Craig, to approve the consent agenda:
a) Approve Minutes of the November 16, 2020 City Council Meeting-Administration
b) Approve Various License and Permit Renewals for 2021-Community Development
c) Adopt Resolution R53-2020 Approving Polling Places for 2021-Community Development
d) Adopt Resolution R54-2020 Accepting a Monetary Donation from the Farmington
Firefighters Relief Association-Fire
e) Approve Policies and Procedures for Federal Awards Administration-Finance
f) Approve Bills-Finance
APIF, motion carried.
8. Public Hearings
a) 2021 License Renewals
Administrator McKnight presented the applications for on-sale liquor licenses, on-sale Sunday
liquor licenses, club licenses and therapeutic massage licenses for 2021.
The following applications have been received:
On-Sale Liquor and On-Sale Sunday
✓ Bourbon Butcher
✓ Celts Pub
✓ EI Charro Mexican Restaurant
✓ Farmington Lanes
✓ Las Enchiladas
✓ Long Branch Saloon and Eatery/Farmington Tap House
✓ Pizza Man
✓ Rebel Chef
✓ The Mug
✓ This Little Piggy Catering
Club License and On-Sale Sunday
✓ VFW Club Post 7662
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Therapeutic Massage
✓ Stephanie Delzer, Main Street Day Spa
The police department has reviewed all applications and all fees and insurance information has
been submitted.
Mayor Larson opened the public hearing. No one in attendance wished to speak.
Motion by Bernhjelm, second by Craig,to close the public hearing. APIF, motion carried.
Motion by Bernhjelm, second by Craig,to approve the on-sale liquor licenses, on-sale Sunday
liquor licenses, club license and therapeutic massage license as discussed. APIF, motion carried.
b) Vacating Certain Sanitary and Storm Sewer Easements
Planning Manager Wippler shared that the city is proposing to vacate three easements that
exist on the property located at 4685 212th Street West that is owned by Northern Natural Gas
Company. The easements are for two existing sanitary sewer lines and one storm water line.
In 1992,the city completed a utility improvements project on this site that included the two
sanitary sewer lines and the storm water line. An easement document was executed on
October 20, 1992 providing easements over these utility lines to the city. Surveys depicting
these lines were included in the meeting packet.
Northern Natural Gas is currently completing site upgrades, including a new auxiliary building.
A new sewer connection will be made to the western most sanitary sewer service to provide
sanitary sewer to this building. Due to these site upgrades, the city reevaluated the need to
retain these sewer easements and determined that these private lines only benefit this
property. Staff believes it is in the best interest to vacate these easements. Northern Natural
Gas agrees on this issue.
Councilmember Bernhjelm clarified that the property owner would now be responsible for all
maintenance in this area. Wippler stated that is correct.
Mayor Larson opened the public hearing. No one in attendance wished to speak.
Motion by Craig, second by Bernhjelm,to close the public hearing. APIF, motion carried.
Motion by Bernhjelm, second by Craig, to adopt Resolution R55-2020 vacating certain sanitary
and storm sewer easements. APIF, motion carried.
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9. Award of Contract
a) Schmitz-Maki Arena Pressure Relief Valve Replacement and Top End Overhaul of
Compressor#2 Project
Parks and Recreation Director Distad presented a proposal on the continued upgrades to
Schmitz-Maki Arena. Staff is proposing to replace 13 pressure relief valves in the refrigeration
system and to complete a top end overhaul of compressor#2.
The arena's current pressure relief valves have not been replaced since 2011. It is
recommended they be replaced every five years.
Compressor#2 serves as a backup compressor should compressor#1 fail or not be able to
handle the workload to maintain ice conditions. The proposed overhaul will extend the life of a
compressor. It is recommended this type of overhaul be completed every five years.
Staff solicited quotes from two companies with experience in this type of work. The quotes
received included:
Cool Air Mechanical, Inc. $8,552
Gartner Refrigeration, Inc. $10,218
The quote includes all parts and labor associated with the project.
If the low quote is awarded, this will leave $26,449 in the funding provided for arena
improvements.
Councilmember Bernhjelm stated that she likes to see the consistency that this company will
bring to all of the projects they have been awarded.
Motion by Hoyt, second by Bernhjelm,to approve an agreement with Cool Air Mechanical, Inc.
for$8,522 to complete the project and authorize Mayor Larson and Administrator McKnight to
sign the agreement. APIF, motion carried.
10. Petitions, Requests and Communications
None
11. Unfinished Business
None
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12. New Business
a) 2021 Final Budget and Tax Levy
Finance Director Malecha presented the final 2021 budget and tax levy for consideration.
The city council discussed the draft 2021 General Fund budget and tax levy at work sessions in
May, July, August, September, and November.The proposed final budget and tax levy are
shown below
2020 Budget 2021 Proposed Increase
Budget (Decrease)
Revenues $3,411,161 $3,298,344 (3.31)%
Expenditures 13,642,352 13,832,464 1.39
Revenues Under Expenditures 10,231,191 10,534,120 2.96
Debt Levy 2,805,387 3,012,093 7.37
Gross Levy 13,036,578 13,546,213 3.91
Fiscal Disparities (2,294,024) (2,277,659) (0.71)
Net Tax Levy $10,742,554 $11,268,554 4.90%
The city council approved the preliminary 2021 tax levy on September 21, 2020 and set the
amount at$11,268,554.
General Fund Revenues
COVID-19 has created challenging times for many businesses but also for the city. Some areas
that have seen a decrease due to COVID-19 are parks and recreation,the Rambling River
Center, and liquor licensing as part of the General Fund. The reduction is predicted to continue
into 2021 resulting in lower revenue receipts than the typical annual increase shown in the
budget.
The revenues for 2020 are projected to decrease 3.31 percent.The majority of those decreases
are accounted for in intergovernmental revenue and investment income.The city will see a
reduction of$228,800 in Local Government Aid (LGA) along with a decrease in MSA
maintenance. Permit revenue is anticipated to rise in 2021.
2020 Budget 2021 Proposed Increase
Budget (Decrease)
Licenses and Permits $473,115 $517,076 9.29%
Intergovernmental Revenue 922,294 667,912 (27.58)
Charge for Service 565,802 576,197 1.84
Fines and Forfeitures 49,000 49,000 0.00
Investment Income 38,800 29,100 (25.00)
Miscellaneous 54,580 79,370 45.42
Transfers 1,307,570 1,379,689 5.52
Total Revenues $3,411,161 $3,298,344 (3.31)%
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General Fund Expenditures
The proposed 2021 department budgets are summarized below.
2020 Budget 2021 Proposed Increase
Budget (Decrease)
Administration $907,162 $902,915 (0.47)%
Human Resource 349,226 361,658 3.56
Dakota Broadband 24,489 37,500 53.13
Finance 778,889 776,287 (0.33)
Police 4,677,813 4,845,796 3.59
Fire 1,445,410 1,435,685 (0.67)
Community Development 1,014,867 1,007,849 (0.69)
Engineering 794,635 813,895 2.42
Municipal Services 1 1,439,078 1,511,187 5.01
Parks and Recreation 1,278,576 1,317,341 3.03
Transfers 932,207 822,351 (11.78)
Total Expenditures $13,642,352 $13,832,464 1.39%
All of the budgets include estimated human resource costs based on approved union contracts
and estimates for employee benefits and worker's compensation premiums.The union
contracts were approved for 2019 through 2021 and include a three percent wage increase
each year. Human Resources completed a RFP process for staff health insurance and was
successful resulting in over$100,000 in savings that affects the General Fund.
Transfers
There are transfers in and out shown in the General Fund budget. The transfers into the
General Fund are from the enterprise funds to reimburse the General Fund for human resource
and administrative costs that benefit the enterprise funds.The transfers out are comprised of
the LGA and tax levy.Those fund public safety equipment, trail maintenance, EDA, and building
maintenance among many other items. A detailed breakdown of the transfers has been
included as a separate exhibit in your packet.
Fiscal Disparities
This is a metro wide program that is used to balance the development of commercial and
industrial growth through the region.The city has received a preliminary estimate of the final
number, which includes a decrease of$16,365.
Debt Levy
The debt levy represents the amount of tax levy needed to meet the city's 2021 debt
repayment obligations.The 2021 debt levy is 7.37 percent higher than the 2020 debt levy.The
increase is due to the purchase of Ladder 1, which will be delivered in early 2021.The city
continues repayment on six bonds and three interfund loans.
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While the city will be issuing additional debt 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 2021 include:
• General Capital Equipment Fund -The city will be continuing fleet replacements with
three in the police department.
• Maintenance Fund - Funding for street and trail maintenance has been
allocated to continue improving the city's streets and trails.There will be crack sealing,
seal coating, along with mill and overlay projects in 2021 along with trail replacement.
• Liquor Stores-There is a transfer of$75,000 into the Park Improvement fund that is
typically done each year. Additional transfers of$200,000 to support pavement
maintenance and $25,000 to support the General Fund are proposed for 2021.
• Water-There is fleet replacement scheduled for 2021.
• Storm Water- Pond capacity improvements and vegetation management are allocated
for 2021.
• Sanitary Sewer-Sanitary sewer lining will continue in 2021 along with fleet
replacement.
These budgets along with the capital improvement plan were reviewed in detail at the October
and November city council work sessions.
Impact
The estimated market value of the average residential home in Farmington increased 6.39
percent from $268,732 in 2019 to$285,906 in 2020.The increase is similar to the increase
of 6.42 percent from 2018 to 2019.The city tax impact to the average homeowner for 2021 is
roughly$40.
Councilmember Craig thanked all of the staff members for their work during the budget
process.
Motion by Hoyt, second by Craig, to adopt Resolution R56-2020 approving the 2020 proposed
tax levy collectible in 2021 in addition to approving all of the 2021 budgets. APIF, motion
carried.
13. City Council Roundtable
Bern hjel m-Than ked Mayor Larson and Councilmembers Donnelly and Craig for their service to
the community. Encouraged residents to shop local during the holiday season.
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Craig-Thanked staff for their work over the years. Thanked the city council for their work,
especially during this difficult year. She does plan to apply for the vacant city council position.
Hoyt-Thanked Councilmember Craig and Mayor Larson for their service.
McKnight-Thanked Councilmembers Craig and Donnelly along with Mayor Larson for their
service to the community.
Kienberger-Thanked Mayor Larson and Councilmembers Donnelly and Craig for their service.
Malecha-Thanked Mayor Larson and Councilmembers Donnelly and Craig for their service.
Rutherford-Updated the city council on Toys for Town and the changes with the pandemic.
Thanked Mayor Larson and Councilmembers Donnelly and Craig for their service.
Elvestad-Encou raged residents to be careful during the holiday season. Thanked Mayor Larson
and Councilmembers Donnelly and Craig for their service.
Distad-Shared that the Rambling River Center will be temporarily closed December 23, 2020
through January 11, 2021. Thanked Mayor Larson and Councilmembers Donnelly and Craig for
their service.
Gehler-Thanked Mayor Larson and Councilmembers Donnelly and Craig for their service.
Larson-Shared his appreciation to the residents for allowing him to serve for the past 12 years.
He started during a recession and is leaving during a pandemic. He shared that the city is in
good hands and thanked his city council peers for their work. He encouraged residents to shop
local.
14. Adjourn
Motion by Craig, second by Hoyt, to adjourn the meeting at 8:01 p.m. APIF, motion carried.
Respectfully Submitted
D g. "C'<
David McKnight, City Administrator
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