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HomeMy WebLinkAbout04.06.09 Council Minutes 7CL COUNCIL MINUTES REGULAR April 6, 2009 1. CALL TO ORDER The meeting was called to order by Mayor Larson at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE Mayor Larson led the audience and Council in the Pledge of Allegiance. 3. ROLL CALL Members Present: Members Absent: Also Present: Audience: Larson, Donnelly, Fogarty, May, Wilson None Andrea Poehler, City Attorney; Peter Herlofsky, City Administrator; Robin Roland, Finance Director; Brian Lindquist, Police Chief; Randy Distad, Parks and Recreation Director; Kevin Schorzman, City Engineer; Todd Reiten, Municipal Services Director; Lisa Shadick, Administrative Services Director; Cynthia Muller, Executive Assistant Tom Hemish, Tim Thompson, Terry Stapf, Tim Pietsch, Patti Norman, Dawn Johnson 4. APPROVE A GENDA Councilmember May pulled items 7g) Interfund Loan Rambling River Center Renovations and 71) Bills for discussion. MOTION by Wilson, second by Fogarty to approve the Agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS a) Proclaim Earth Day - Municipal Services Mayor Larson proclaimed April 22, 2009 as Earth Day. b) Proclaim Arbor Day - Parks and Recreation Mayor Larson proclaimed April 24, 2009 as Arbor Day. c) Proclaim April 15, 2009 Chief Ken Kuchera Day - Fire Department Mayor Larson proclaimed April 15, 2009 as Chief Ken Kuchera Day. He will be retiring after 38 years of service. 6. CITIZEN COMMENTS 7. CONSENT AGENDA MOTION by Fogarty, second by Wilson to approve the Consent Agenda as follows: a) Approved Council Minutes (3/16/09 Regular) b) Received Information Recycling Rate Adjustment - Municipal Services c) Received Information School and Conference - Police Department Council Minutes (Regular) April 6, 2009 Page 2 d) Approved School and Conference - Fire Department e) Received Information February 2009 Financial Report - Finance f) Received Information Quarterly Investment Report - Finance h) Approved Appointment Recommendation Liquor Operations - Human Resources i) Authorized School and Conference - Administration j) Approved Mowing Agreement with Toro Company - Parks and Recreation k) Approved Appraisal Agreement Rambling River Center - Administration APIF, MOTION CARRIED. g) Adopt Resolution - Interfund Loan Rambling River Center Renovations - Finance Councilmember May noted a loan amortization schedule was not included and that the memo reads $100,000 but the resolution reads $105,000 with $21,000 annual installments. Finance Director Roland stated as there is no interest, the amortization schedule will be $20,000/year. The resolution will be changed to read $100,000 and $20,000. Councilmember May asked about any interest earned by the Recreation Operating Fund for the five year period due to the increased cash balance will be allocated to the original loaning fund. She asked how this will be determined. Finance Director Roland stated there will not be any interest earnings because we will be running the Rambling River Center fund in a deficit cash position due to collecting the revenues on the back side of the loan. This is a $250,000 project that will be funded by $100,000 upfront and $75,000 in fund raising over the term of the project. During the year we allocate interest earnings based on the cash balances in all of the funds. If there is a negative cash balance, we don't allocate negative earnings. Should there be a positive cash balance in the recreation operating fund, there would be interest revenue that would go towards that, but if any portion of that is due to the loan from the storm water fund, we would move the interest earnings to the storm water fund. This would be determined by the year and the amount of loan outstanding. Councilmember May noted there would be fund raising. MOTION by Fogarty, second by Donnelly to adopt RESOLUTION R15-09 authorizing a $100,000 interfund loan from the Storm Water Trunk Fund to the Rambling River Center renovation project. APIF, MOTION CARRIED. I) Approve Bills Councilmember May had several questions on the list of bills and all questions were answered. MOTION by Wilson, second by May to approve the bills. APIF, MOTION CARRIED. 8. PUBLIC HEARINGS a) Approve On-Sale Liquor License - Administration Ms. Maria Araceli Cortes, owner of the Cancun Restaurant, 953 8th Street, has applied for an On-Sale Liquor License and On-Sale Sunday Liquor License. MOTION by Fogarty, second by Wilson to close the public hearing. APIF, MOTION CARRIED. MOTION by Fogarty, second by Donnelly to approve Council Minutes (Regular) April 6, 2009 Page 3 the On-Sale Liquor License and On-Sale Sunday Liquor License for the Cancun Restaurant at 953 8th Street. APIF, MOTION CARRIED. 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS a) 2008 Annual Report - Municipal Services Municipal Services Director Reiten presented the 2008 Annual Report for Municipal Services. This report summarizes the activities and initiatives of the Municipal Services department in 2008. This department includes six divisions; streets, snow, sanitary sewer, water, fleet and solid waste. There is one director, two supervisors, eight maintenance workers, five solid waste operators, two mechanics and one part-time administrative staff. The streets division is responsible for maintaining 80 miles of streets and alleys and 92 cul-de-sacs. Snow removal is divided into 12 routes with priority given to collector streets. Sanitary sewer division is responsible for the operation and maintenance of 83 miles of sewer lines and five lift stations. The water division is responsible for the operation, maintenance and repairs of all facilities necessary to get water to over 6,000 residents and businesses. There are two towers and eight wells. In 2008, the City pumped 788 million gallons of water. In 2008 there were 5300 water meters replaced that were not electronically read. This reduces the length of time to read meters from nine days to half a day. In the fleet division there are two mechanics that provide maintenance and repairs for 89 vehicles, 35 pieces of equipment and ten trailers. The solid waste division provides garbage collection for 6500 residents and 160 commercial accounts. The City negotiated a new recycling contract with DSI for single-stream recycling. Along with Dakota County, the City also offered a one-day hazardous waste drop-off. Councilmember Fogarty asked if all the meters have been changed. Staff replied there is approximately 100 left, some due to foreclosures. Letters were sent to 60 homes that they will be charged $150/month for not setting a time to allow the City to change out the meter. If the house is vacant, the meter is shut-off. The remainder will be handled through City staff rather than the contractor. 11. UNFINISHED BUSINESS a) Approve Contract with YMCA - Administration City Administrator Herlofsky has been having discussions with the YMCA about their assistance with operating the pool this summer. The main purpose is to give the YMCA a presence in the community for the long-term. The City will not save any money and the City's intent is not for the YMCA to make any money, but to have the pool operated as effectively and efficiently as possible. This will allow the lifeguards, attendants, etc., to be hired by the YMCA. They would handle payroll and other activities. In order to begin hiring, a decision from Council is necessary. Council Minutes (Regular) April 6, 2009 Page 4 Councilmember Fogarty asked if the swim bus only runs within Farmington. Parks and Recreation Director Distad stated it runs within Farmington and makes one stop at the Empire Town Hall which the township pays for. Councilmember Fogarty asked if there was any discussion about including the entire school district. This has not been discussed. The same rates are in effect as in 2008. The only change is with the swimming lessons. Councilmember Wilson asked about the operating loss and a new estimate of $5,000 - $10,000. City Administrator Herlofsky explained the total operation of the pool is approximately $100,000 before transfers. The agreement with the YMCA is the City will make the pool ready as we do every year. The difference is the actual pool operations; lifeguards, attendants, etc. would be under the direction ofthe YMCA. The YMCA's costs would be $40,000 - $50,000. The City feels the costs are closer to $40,000. What makes the pool operation successful is the weather, temperature, and other issues. The City will not save any money. It will save the City time and effort with payroll. The main purpose is to help the YMCA get a presence in the community which was consistent with prior Council. If the Council is not interested in this unless it cuts costs, the City will run the pool as usual. The YMCA discussions with Community Ed and the Parks and Recreation Department are that they can offer additional activities for middle age teens. Originally the City said it costs $75,000 to run the pool. When we put together the costs related to the actual portion the YMCA will do, it is somewhere between $40,000 - $50,000. Councilmember Wilson asked about the $5,000 - $10,000. City Administrator Herlofsky stated the YMCA is saying their operation of the pool will be $45,000 - $50,000 and the City thinks it will be closer to $40,000. The agreement is looking at the YMCA running the pool for two years. Councilmember Wilson asked if we could be in a situation where we would have to provide more financial support than normal. City Administrator Herlofsky stated the intent would be not to. When the agreement is finalized that will be worked out with the City Attorney. Councilmember Wilson stated the YMCA has a new Executive Director who started today and it is possible she may have a different philosophy on this. Another person who was instrumental in this with Community Ed is also moving to another opportunity. There are two major players that were involved with this that are now in different places. With these changes, Councilmember Wilson was uncertain if the direction is the same from their end. City Administrator Herlofsky stated his contact person with the YMCA called him last week to verify their interest and that was Mary Erickson. At that time they both agreed a decision needed to be made in early April to move forward. Councilmember Wilson thought she has moved on or will be. City Administrator Herlofsky stated he has not received any notification stating a change in her position. Councilmember May was confused with the numbers. Staff had said the operating cost was $100,000 before transfers so she wanted clarification on that. The YMCA is saying $50,000 and the City is saying $40,000, so where is the $100,0007 Finance Director Roland explained normally the City receives Council Minutes (Regular) April 6, 2009 Page 5 approximately $70,000 worth of revenue from the pool and we have $130,000 - $160,000 of expense. The number we talk about is a net of the two, which is a loss of about $75,000. The correct answer to the question is the cost for the pool is $75,000. The $5,000 - $10,000 is the difference between that $75,000 we normally lose and the combination of what the City will pay and the YMCA will pay which is $40,000 - $50,000 combined. If the City pays $45,000 and the YMCA pays $45,000 that is $90,000, which is a difference of about $15,000 from the $75,000. We are not sure of what the numbers will be as far as what the City will be required to payor what the YMCA will be required to pay because this is the first year. Staff is anticipating the loss will be possibly greater between the two entities. It might be $80,000 - $85,000 but we will not know that until the end of the season. We are trying to not lose more money, but in the effort to combine services we might end up losing more money than what we normally do. City Administrator Herlofsky stated if the weather is very hot and there are a lot of people there will be higher revenues. If it is cold we will not have it open which will reduce operating expenses. The purpose is to establish a long-running relationship with the YMCA which is the most important element. A long term relationship will help the community provide more programming throughout the community and possibly some cooperation in the future with a facility. As far as day-to-day operations and cost we will work to make sure it does not exceed current operating costs. Councilmember May asked if the City would be losing the $40,000 rather than the $75,000. City Administrator Herlofsky stated it costs so much to operate the pool and we receive so much revenue. The City will be maintaining the pool as before. At the end of the season we will see what the YMCA's costs for personnel are versus the City's. The salaries would be the same. This would relieve City staff from recruiting, interviewing, and payroll. Councilmember May asked how we can say our costs will not be less if we are not allocating and transferring some of the personnel expense to the pool as we will not be responsible for the pool. She assumed staff transfers some personnel costs from different departments and won't those numbers be reduced. City Administrator Herlofsky stated our costs would be hiring all the same people the YMCA will be hiring. The City will not hire lifeguards, etc. Parks and Recreation Director Distad stated the only costs the City will take on is the maintenance costs of staff that perform the maintenance duties and those are full time staff whose time is not only allocated to the pool, but to other City facilities. Mayor Larson noted we will be saving the insurance because the YMCA will carry the insurance. Finance Director Roland stated the YMCA will carry a certain amount of insurance, but the City will be listed as an additional insured. It is still a City building and the costs for insurance are included in that. Councilmember May stated she was extremely confused so recommended Council look at this for next year. We need to show some sort of savings and it has not been identified. She suggested seeing what we can do internally one more year, gather more facts as to what the YMCA can do for us and try next year. Council Minutes (Regular) April 6, 2009 Page 6 Councilmember Donnelly stated it sounds like the City is not expecting to contribute any more than $75,000 as in prior years. City Administrator Herlofsky stated the subsidy for the operation of the pool is expected to be at least $75,000 as in previous years. Councilmember Donnelly added and maybe $10,000 more. The weather conditions that would affect the City would also affect the YMCA. This is revenue neutral and giving the community access to the YMCA. He asked if the City currently offers Red Cross swim lessons now. Staff does offer those lessons, but the YMCA provides their own lessons; it is not Red Cross lessons. Councilmember Wilson stated even if we decline doing this, it does not preclude us from working with the YMCA on other types of venues. We are reducing costs, but yet providing a healthy price support to make sure they do well. Not only are we providing a presence, which is a positive thing, but we would be providing a lot of additional support that mitigates the savings we would have captured if we truly contracted out the operations. Especially with the budget situation, he is leery to have $5,000 - $10,000 floating out there. Councilmember Fogarty was supportive of the YMCA's presence and was not confused by the numbers. This is not about saving money. She understood the concern with the $5,000 - $10,000, but the pool does this every year. We never know what the deficit will be on the pool. The Council accepted the fact we wanted to keep the pool open knowing we had to subsidize it. It would be great to have the YMCA here and she does not see a bigger risk with what is being proposed than we have had in the past. Mayor Larson noted the YMCA members will have the use of the pool at no charge as a privilege of the YMCA membership. He did not know how many YMCA members would come, but there could be YMCA members that get first choice at the pool and if it is at capacity and neighborhood kids want to get in the pool, they can't. City Administrator Herlofsky stated he was sure the YMCA would be trying to sell memberships to Farmington residents. Based on other pool alternatives to the north of Farmington, he did not see that as a major concern. He was not trying to talk the Councilor the YMCA into doing this. Both have to look at it as an opportunity. Mayor Larson asked ifthe YMCA has looked at our records. Parks and Recreation Director Distad stated all records they have requested have been supplied. Mayor Larson confirmed the insurance walk-through would be done when the pool is opened. City Administrator Herlofsky stated that is a detail that will be worked out and will not break the deal one way or another. The biggest thing is we are not going to save money; our intent is to break even. MOTION by Fogarty, second by Donnelly to approve the YMCA contract. Voting for: Donnelly, Fogarty. Voting against: Larson, May, Wilson. MOTION FAILED. Council Minutes (Regular) April 6, 2009 Page 7 b) consideraton of Rescinding the Budget Adjustments of March 2, 2009 - Councilmember Wilson MOTION by Wilson, second by May to rescind the budget adjustments of March 2,2009. Voting for: May, Wilson. Voting against: Donnelly, Fogarty. Mayor Larson asked what we are looking to accomplish. Councilmember Wilson temporarily suspended his motion. Councilmember Wilson stated he brought this up because he did support the motion on March 2,2009, but the more he considered this action, the reality is Council solved part of the problem, but not the full package in one swoop. There are other areas, for example one on the consent agenda which is a $75,000 savings with the Toro contract. He asked if that money could be applied. He noted Lakeville put everything together in one package and nothing left to be solved later down the road. He would like Farmington to do the same. It could be the end product would be the same. He suggested having another workshop to revisit the items previously discussed and look at some bigger picture items as we move forward. Councilmember May agreed. Mayor Larson felt this could not be resolved until June with the dates already filled up. He asked how this would affect the budget if it is left until June. City Administrator Herlofsky stated this is the 2009 budget and staff has been working on this since May 2008. It was approved in December, we have brought forward suggestions and have more tonight. The sooner it gets done, the sooner we can start on 2010. Staff would prefer this is wrapped up as quickly as possible. Council has to decide on how to accomplish that. Councilmember Wilson suggested to give City employees more choice, one item from March 2, was to reduce hours beginning June I through the summer. One idea that could have the same financial result would be a furlough program which other cities are doing. That allows employees the flexibility to use furlough days when they want. With the 36-hour week he felt we automatically instituted the summer hours program which Council has not formally discussed. City Administrator Herlofsky stated they have met with the union and they have no problems with the process so far. Staff has tried to meet the policy request Council has made. He would like Council to allow staff some flexibility to administer the program rather than Council. The major directive was to reduce the budget by $350,000. There will be adjustments made for the 36-hour weeks, but that is an administrative decision. He suggested allowing staff to go through the additional items suggested on the agenda. Councilmember Wilson stated he appreciated all the work staff has done. His concern was there is another $75,000 left to go and what if Council as a whole, has policy areas that might fit into this reduction. It seems Council is bound by the decision made on March 2,2009. We have 2/3 ofthe decision solved and we have another 1/3 to solve. It does not seem like an efficient way to do a full reduction package. City Administrator Herlofsky stated we started with a list of options to figure out which ones Council would like. Those have been brought to Council. City Administrator Herlofsky Council Minutes (Regular) April 6, 2009 Page 8 stated he has a concern and has a feeling Council feels staff has not done enough to reduce staffing. The last few years we have seen this issue and the management team has acted accordingly. He looked at staffing combinations that have taken place. In 2006 the Economic Development Director left and was not replaced and responsibilities were assumed by the City Administrator and some assigned to staff. When Lee Mann with Bonestroo left, we hired Assistant City Engineer Kevin Schorzman as the City Engineer and did not replace the assistant position. In 2008 when the Solid Waste Supervisor retired, he was not replaced and assigned a Municipal Services Coordinator. We took the Facilities Supervisor and Parks Supervisor and combined the position for more coordination of staffing. We have eliminated three positions in the last three years from management and did reduce two Building Inspectors in 2007 and 2008. A support position was supposed to start in 2008 and did not. In 2009 we lost a supervisor in the Parks and Recreation department. During the same period of time, we did authorize two patrol officers and one other person in the Water department. We have reduced staff over the last three years. It was done as painlessly as possible with taking advantage of employees leaving for a variety of reasons. Councilmember Fogarty stated Council asked staff and they responded by reducing $100,000 in employee salaries, PERA and FICA. In the past we have talked about what level Council wants to be at and it seems we are getting down to the 5,000 ft. level and micro-managing. She does not care what manner they take away the $100,000; that is for staff to work out. When they take the hours off is up to staff. We can over-analyze this forever. The idea of trying to fix the 2009 budget in a workshop in June cannot be done; it is too late. We cannot fix the budget halfway through the year. We need to be discussing 2010. Ifwe approve the 2009 budget adjustments tonight, there is not one permanent fix. We still have a huge job for 2010. We have not created any permanent changes. To still be discussing the 2009 budget in June is unacceptable. We need to start conversations about the 2010 budget and how we will make some permanent fixes, permanent cuts, permanent revenue streams. Councilmember Donnelly stated of the $350,000 we have already approved $212,000 in reductions, so we are discussing $130,000 of further reductions. We are halfway through the year and need to look at next year's budget. He asked if Council votes on the resolution for the budget adjustments, wouldn't that also decide this item? Councilmember Wilson stated the resolution formalizes the action taken on March 2, 2009. Councilmember Donnelly clarified the motion is to rescind the action already taken and start over. Mayor Larson stated regarding the ALF money, we do not know how much that will be. If it does get distributed in 2009, does it go towards the 2010 budget or the 2009 budget? City Administrator Herlofsky stated that is anticipating something we do not have. Mayor Larson replied so is the $350,000. City Administrator Herlofsky stated it would be extra money, we do not have the Council Minutes (Regular) April 6, 2009 Page 9 amount, and it would be a one time adjustment. It will not fix anything. This is separate from the $12,400 ALF adjustment in the budget. Mayor Larson asked what if the Governor decides to take $175,000 rather than $350,000 and we make the cuts for $350,000. City Administrator Herlofsky stated we would be in good shape at the end of the year because we would have more to add to the fund balance. In the last three years the Council has been adamant about increasing the fund balance. This was done in 2006 and 2007. Council can amend the 2009 budget when that is known. Mayor Larson stated if the budget adjustments pass, he would recommend looking at amending the budget and replacing some of the costs. Councilmember Wilson asked about the savings from the Toro contract of $75,000 and if that was general fund money in the Parks maintenance budget. Parks and Recreation Director Distad explained it is not a savings; it is a value. There is still the same cost to the department as staff time is then available for other projects. Councilmember Wilson asked ifit has the net effect of hiring less seasonal staff. Parks and Recreation Director Distad stated there is already a reduction in seasonal staff. City Administrator Herlofsky stated Toro might come in at a time convenient for them. Staff has to plan for them not being here. Councilmember Wilson explained he was not saying that the $212,000 would not remain the same. He was asking for the whole package at one time. The information received from Finance and from the auditor was good information regarding the Fire Department pension, but it caught the Fire Department off guard. He agreed we need to give staff the flexibility to manage the hours, but the motion on March 2, was very descriptive to the hours per week. Councilmember Donnelly asked regardless of this motion, do we still discuss the next agenda item regarding further budget adjustments. City Attorney Poehler stated we still discuss that item. Councilmember May stated she is new to the Council so does not feel like she has over-analyzed anything. A lot of it is learning curve. The way it has been approached is throw a few things in front of me, have me rubber stamp it, a couple weeks later throw out a few more things and have me rubber stamp it. That is why she agrees with Councilmember Wilson. In previous budget processes she has been involved in you look at the whole picture and make your choices that way instead of getting three that we like and then move forward. It did not give her a good opportunity to look at the big picture and make the best decision. She does not feel like Council has. Mayor Larson stated he also would have liked to have seen the budget as a whole. He has told City Administrator Herlofsky that for the next budget he does want to see it as a whole and not piece meal. We can start from square one and have it look similar to what we have now. He did not know what we would gain and we do need to move forward. If we do have extra money, he would like to see some Council Minutes (Regular) April 6, 2009 Page 10 of the $70,000 reduction for the Fire Department reduced. Finance Director Roland stated close to year end Council can make those policy decisions. Mayor Larson stated it is time to get 2009 taken care of and start working on 2010 . We have a lot of work to do there. MOTION by Wilson, second by May to rescind the budget adjustments of March 2,2009. Voting for: May, Wilson. Voting against: Donnelly, Fogarty, Larson. MOTION FAILED. c) 2009 Budget Amendment -Administration/Finance City Administrator Herlofsky stated the adjustments amounting to $212,000 were approved previously. Further adjustments include $50,000 after closer scrutiny of the budget. Mayor Larson asked staff to explain so everyone knows. Finance Director Roland stated budgeting is not a science it is an art. In her profession she is required to under estimate revenues in the budget and over estimate expenses. During the 2009 budget preparation staff set the amount of money received from the three surrounding townships for the fire contract at a level which we have not received for three years. The City has received more because of the way the contracts are structured, the number of calls, and the costs involved. This includes the depreciation on the buildings and Fire Department equipment. In 2007 staff added a second fire station which increased the cost to the township and it was paid toward the debt service on the fire station which was a $50,000 transfer. In 2008 the City received $170,000 from the three townships for the fire service we provide to them. During this year's audit, the auditors pointed out that our budget number was significantly lower than the revenue received. Finance Director Roland then looked at 2009 and noticed the low number was also in the 2009 budget and should be increased to more accurately reflect what we will actually collect. What this does is it cuts the margin of error. If we do not receive $170,000 and receive $150,000 then this difference of $50,000 is not as large. Finance Director Roland stated this is additional revenue we have collected historically and we can anticipate, given the levels of fire calls and depreciation and expenses, that we can expect this additional revenue is a fact, not a supposition. City Administrator Herlofsky stated the second adjustment is training budgets have been reduced by $25,000. He noted total expenditures in 2008 are $8,975,829. With the adjustments so far, the 2009 budget is $8,848,757. It is reduced $125,000 less than the actual budget for 2008. Councilmember Donnelly confirmed the $50,000 is not an increase in cost to the township it is just recognizing actual numbers. This proposal closes the gap, does not institute new fees, raise taxes, and does not lay anyone off. Councilmember Wilson asked if the $22,400 reduction for police overtime was formally approved. Staff explained it was at a workshop and not a vote. Councilmember Wilson stated if there is a situation the Police need to respond to, Council Minutes (Regular) April 6, 2009 Page II he did not know how you can take out $22,000. You need to solve the crime. City Administrator Herlofsky stated if there was a major public safety issue, there would be issues. MOTION by Donnelly, second by Larson to adopt RESOLUTION R16-09 approving the budget amendments. Voting for: Larson, Donnelly, Fogarty. Voting against: May, Wilson. MOTION CARRIED. Councilmember Fogarty stated she is very unhappy that this Council was unable to make any kind of effective decision that will affect the 2010 budget. There are no permanent cuts and no permanent fixes. We have laid the ground work for a very, very difficult budget season. She stated she was very unhappy about that, but if she did not vote in favor it will continue on and we need to settle 2009 so we can move forward to 2010. Mayor Larson stated this was a 2009 fix and we all realize what is ahead of us for 2010. We had to make up for the $350,000 and did not have much of a choice. 12. NEW BUSINESS a) Adopt Resolution - Approve Plans and Authorize Bids 2009 Trunk Utility Improvement Project - Engineering This project includes the reconstruction of storm sewer on 4th Street, the reconstruction of sanitary sewer on 5th Street and sanitary sewer extension on Denmark Avenue. The project will be bid on May 14,2009, with the contract award at the May 18,2009 Council meeting. Project costs are estimated to be $2,970,000 which will be split among the trunk utility funds. There are no assessments proposed for this project. Mayor Larson asked if the residents on 4th and 5th Streets paid for a seal coat two years ago and now their street will be tom up. City Engineer Schorzman stated some portions were three years ago and others a year after that. Mayor Larson suggested giving them their seal coat money back or pro-rate it as they are not getting their seven years out of it. Staff explained it is up to Council and we can do that, but as a result ofthis project they will have a brand new street. Councilmember Fogarty added it will not need to be seal coated for three more years. She would like to know if you add that three years to how much they have paid, as that could put them on a shorter cycle where they have to pay more frequently. She agreed with Mayor Larson to pro-rate it. Staff will bring this information back after the bids are received. Councilmember Wilson had the same concern or the City could absorb the cost of their next seal coat. As far as assessments, Councilmember Wilson stated residents have been paying into this through utility bills so this is how this project is being paid for. City Engineer Schorzman stated the trunk funds receive funds from both utility billing and developer fees when new developments come on board. Regarding the Denmark Avenue project, Councilmember Wilson was aware there is the possibility of a CDA project on one end of this area, and asked if that could be the reason for doing this project now. City Engineer Schorzman Council Minutes (Regular) April 6, 2009 Page 12 stated the CDA project would not be impacted by this project. The reason for the Denmark project is looking at the CIP down the road when redoing the Westview neighborhood and removing a lift station. Councilmember Wilson stated he will support the project, but felt this is money coming from the sanitary fund that could have been developer paid along Denmark. City Engineer Schorzman stated those contributions will be made when that land develops, regardless of whether this project happens now or later. We are doing it now so we can do other projects. Councilmember Donnelly asked if we can get rid of one or two lift stations. Staff explained one is in the Westview neighborhood and the other one is near Dakota Electric and St. Michael's Church. Mayor Larson stated whether the sewer goes in now or later, he would rather see it go in now to get the area ready for when development does come. MOTION by Fogarty, second by Wilson to adopt RESOLUTION R17-09 approving the plans and specifications and authorizing the advertisement for bids for the 2009 Trunk Utility Improvement Project. APIF, MOTION CARRIED. 13. COUNCIL ROUNDTABLE a) Hydrant Flushing - Municipal Services Municipal Services Director Reiten reminded residents the City will be flushing hydrants the week of April 20-24 for hydrants north ofhwy 50 and west ofthe railroad tracks. Remaining areas will be done April 27 - May 1. There is a map on the website showing the schedule. This is also on the City Calendar. Councilmember Wilson asked if the phonemaster system could be used for this. Staff explained that is more for emergency situations. Councilmemher May: Asked about the status of the Rambling River Center. Parks and Recreation Director Distad suggested Council take a tour prior to the workshop on April 13. Councilmember May suggested everyone look at the website for the upcoming clean-up days. Councilmemher Fogarty: Noted the hydrant flushing and clean-up days are both on the City Calendar and complimented staff on how wonderful the calendar is with keeping up on things. It is a great tool and the information is fantastic. City Engineer Schorzman: There is a joint Council/School District/Dakota County workshop on Wednesday to discuss the second phase of the Farmington Transportation Study regarding the intersections along Pilot Knob Road. Mayor Larson: He attended the Farmington High School play and the students did a really good job and he was very impressed. Council Minutes (Regular) April 6, 2009 Page 13 14. ADJOURN MOTION by Fogarty, second by Wilson to adjourn at 8:50 p.m. APIF, MOTION CARRIED. Respectfully submitted, /"'./ ;:' . /07 7.~Y4 ;h-/~~ Cynthia Muller Executive Assistant