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HomeMy WebLinkAbout12.18.23 Council PacketMeeting Location: Farmington City Hall, Council Chambers 430 Third Street Farmington, MN 55024 CITY COUNCIL REGULAR MEETING AGENDA Monday, December 18, 2023 7:00 PM Page 1.CALL TO ORDER 7:00 P.M. 2.PLEDGE OF ALLEGIANCE 3.ROLL CALL 4.APPROVE AGENDA 5.ANNOUNCEMENTS / COMMENDATIONS 6.CITIZENS 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 7.1. Minutes of the November 20, 2023 Regular City Council Meeting Agenda Item: Minutes of the November 20, 2023 Regular City Council Meeting - Pdf 5 - 10 7.2. Minutes of the December 4, 2023 Regular City Council Meeting Agenda Item: Minutes of the December 4, 2023 Regular City Council Meeting - Pdf 11 - 16 7.3. Various Business License Renewals for 2024 Agenda Item: Various Business License Renewals for 2024 - Pdf 17 7.4. Retainer Agreement with Lockridge Grindal Nauen regarding PFAS Settlements Agenda Item: Retainer Agreement with Lockridge Grindal Nauen regarding PFAS Settlements - Pdf 18 - 22 7.5. Contract Between the City of Farmington and 5 Star Inspections Inc for Electrical Inspections Services Agenda Item: Contract Between the City of Farmington and 5 Star 23 - 30 Page 1 of 229 Inspections Inc for Electrical Inspections Services. - Pdf 7.6. Denmark Housing Addition First Amendment to Development Contract Agenda Item: Denmark Housing Addition First Amendment to Development Contract - Community Development - Pdf 31 - 36 7.7. Resolution Granting a Second Time Extension for Recording of Final Plat - Denmark Housing Addition - Community Development Agenda Item: Resolution Granting a Second Time Extension for Recording of Final Plat - Denmark Housing Addition - Community Development - Pdf 37 - 39 7.8. Liability Coverage Waiver Form Agenda Item: Liability Coverage Waiver Form - Pdf 40 - 41 7.9. Payment of Claims Agenda Item: Payment of Claims - Pdf 42 - 43 Payment of claims. 7.10. Financial Review for the Quarter Ending September 30, 2023 Agenda Item: Financial Review for the Quarter Ending September 30, 2023 - Pdf 44 - 56 7.11. Professional Services Agreement with Ehlers to provide Long-Term Financial Planning Services Agenda Item: Professional Services Agreement with Ehlers to provide Long-Term Financial Planning Services - Pdf 57 - 84 7.12. 2024 Non-Bargaining Compensation Increases and Approval of Memorandum's of Understanding with Unions for Market Adjustments to Wages Agenda Item: 2024 Non-Bargaining Compensation Increases and Approval of Memorandum's of Understanding with Unions for Market Adjustments to Wages. - Pdf 85 - 95 7.13. Employee Recognition Policy Update Agenda Item: Employee Recognition Policy Update - Pdf 96 - 98 7.14. Paid-on-Call Firefighter Wages and Fire Officer Stipends Agenda Item: Paid-on-Call Firefighter Wages and Fire Officer Stipends - Pdf 99 - 100 7.15. Personnel Policy Update Agenda Item: Personnel Policy Update - Pdf 101 - 104 7.16. Staff Changes and Recommendations Agenda Item: Staff Changes and Recommendations - Pdf 105 7.17. Resolution Accepting Donation from Happy Harry’s Furniture to the Rambling River Center Agenda Item: Resolution Accepting Donation from Happy Harry’s Furniture to the Rambling River Center - Pdf 106 - 107 7.18. Resolution Accepting Donation from Dakota County Heroes 108 - 109 Page 2 of 229 Agenda Item: Adopt Resolution Accepting Donation from Dakota County Heroes - Pdf 7.19. Resolution Accepting Grant Award from the Minnesota Chiefs of Police Foundation Agenda Item: Resolution Accepting Grant Award from the Minnesota Chiefs of Police Foundation - Pdf 110 - 112 7.20. South Metro SWAT Joint Powers Agreement Agenda Item: South Metro SWAT Joint Powers Agreement - Pdf 113 - 136 7.21. Final Acceptance of Public Streets and Utilities and Release of Securities – Sapphire Lake 3rd Addition Agenda Item: Final Acceptance of Public Streets and Utilities and Release of Securities – Sapphire Lake 3rd Addition - Pdf 137 7.22. Tree City USA Recertification Agenda Item: Tree City USA Recertification - Pdf 138 - 167 7.23. Playground Equipment for Rambling River Park Agenda Item: Playground Equipment for Rambling River Park - Pdf 168 - 180 7.24. Minutes of the November 28, 2023 Special Work Session Agenda Item: Minutes of the November 28, 2023 Special Work Session - Pdf 181 - 188 7.25. Minutes of the December 4, 2023 Council Work Session Agenda Item: Minutes of the December 4, 2023 Council Work Session - Pdf 189 - 197 7.26. First Amendment to the Residential Solid Waste/Recycling Services Agreement Between the City of Farmington and Dick's Sanitation Agenda Item: First Amendment to the Residential Solid Waste/Recycling Services Agreement Between the City of Farmington and Dick's Sanitation - Pdf 198 - 229 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS 11. UNFINISHED BUSINESS 12. NEW BUSINESS 13. CITY COUNCIL ROUNDTABLE 14. ADJOURN Page 3 of 229 Page 4 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Shirley Buecksler, City Clerk Department: Administration Subject: Minutes of the November 20, 2023 Regular City Council Meeting Meeting: Regular Council - Dec 18 2023 INTRODUCTION: For Council review and approval are the minutes of the Regular City Council Meeting dated November 20, 2023. ACTION REQUESTED: Approve the minutes of the November 20, 2023 Regular City Council Meeting. ATTACHMENTS: 11.20.23 Council Minutes Page 5 of 229 Regular City Council Meeting Minutes of November 20, 2023 Page 1 of 5 City of Farmington Regular Council Meeting Minutes Monday, November 20, 2023 The City Council met in regular session on Monday, November 20, 2023, at Farmington City Hall, 430 3rd Street, Farmington, Minnesota. 1. CALL TO ORDER Mayor Hoyt called the meeting to order at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE Mayor Hoyt led everyone in the Pledge of Allegiance. 3. ROLL CALL Members Present: Mayor Joshua Hoyt Councilmembers Holly Bernatz, Nick Lien. and Steve Wilson Members Absent: Councilmember Katie Porter (excused absence) Staff Present: Lynn Gorski, City Administrator Julie Flaten, Asst City Administrator/HR Director Leah Koch, City Attorney Deanna Kuennen, Community & Economic Development Director Kim Sommerland, Finance Director Kellee Omlid, Parks & Recreation Director Gary Rutherford, Police Chief John Powell, Public Works Director Shirley Buecksler, City Clerk 4. APPROVE AGENDA City Administrator Gorski requested to pull Item 8.2, Ordinance Amending Title 6, Chapter 2, of the Farmington City Code as it Relates to Licensing of Dogs, for language clarifications. Motion was made by Councilmember Wilson and seconded by Councilmember Bernatz to approve the agenda, as amended, removing Item 8.2. Motion carried: 4 ayes / 0 nays 5. ANNOUNCEMENTS / COMMENDATIONS Welcome County Commissioner Mike Slavik Commissioner Mike Slavik provided an update on Dakota County. Council thanked him for coming here to speak in Farmington. Page 6 of 229 Regular City Council Meeting Minutes of November 20, 2023 Page 2 of 5 6. CITIZENS COMMENTS / RESPONSES TO COMMENTS None. 7. CONSENT AGENDA 7.1 Contract for Printing and Mailing Services for The Currents Publication 7.2 Minutes of the November 6, 2023 Regular City Council Meeting 7.3 Contract Between the City of Farmington and Beaver Creek Companies Inc. for Septic System Permitting and Inspection Services 7.4 Payment of Claims for November 1 - 14, 2023 in the Amount of $$805,417.17 7.5 Agreement with International City Management Association Retirement Corporation, doing business as Mission Square Retirement 7.6 Staff Changes and Recommendations Including: • Seasonal Warming House Attendants Mason Eby, Layne Johnson, William Lally, Lauren Lansig, Ayden Perkinson, Ha ley Rentz, and Brandon Tende 7.7 Lease Renewal for the City Hall Postage Meter System 7.8 New Copier Leases with Xerox 7.9 Resolution R73-23 Accepting a Donation of Coffee, Orange Juice, and Bana nas from Kwik Trip to the Rambling River Center 7.10 Resolution R72-23 Declaring Items as Surplus and Authorizing Disposal: 18 Trash Receptacles Motion was made by Councilmember Lien and seconded by Councilmember Bernatz to approve the Consent Agenda, as presented. Motion carried: 4 ayes / 0 nays. 8. PUBLIC HEARINGS 8.1 Ordinance Amending Chapter 18 of the Farmington City Code Related to Peddlers, Solicitors, and Transient Merchants Mayor Hoyt opened the public hearing. City Clerk Buecksler presented an ordinance amending Chapter 18 of the City Code as it relates to peddlers, solicitors, and transient merchants. Some of the significant changes include: • A definition added for Non-Commercial Door-to-Door Advocate, as well as language clarification for other definitions in this chapter. • The inclusion of exceptions from licensing for certain activities (license not required), some of which include: o Persons establishing a regular customer delivery route for perishable food and dairy products; o Persons making newspaper deliveries or attempting to establish a newspaper route; o Any person holding a garage sale, rummage sale, or estate sale; Page 7 of 229 Regular City Council Meeting Minutes of November 20, 2023 Page 3 of 5 o Persons holding a multi-person bazaar or flea market. o Persons selling products grown, raised, or produced on a farm; and o An auctioneer conducting an auction. • An amendment to application requirements and procedures. • The license term changed from either an annual or six-month license to an annual license only. • Hours for when business may be conducted: o 9 a.m. – 7 p.m. Monday through Friday; and o 10 a.m. – 5 p.m. Saturday and Sunday • A section added for Exclusion by Placard. Seeing no one wishing to speak, Mayor Hoyt closed the public hearing. Motion was made by Councilmember Wilson and seconded by Councilmember Bernatz to pass Ordinance 023-778 Amending Chapter 18 of the Farmington City Code Regarding Peddlers, Solicitors, and Transient Merchants. Motion carried: 4 ayes / 0 nays. 8.2 Ordinance Amending Title 6, Chapter 2, of the Farmington City Code as it Relates to Licensing of Dogs This item was pulled from the agenda for language clarifications. 9. AWARD OF CONTRACT None 10. PETITIONS, REQUESTS AND COMMUNICATIONS None 11. UNFINISHED BUSINESS None 12. NEW BUSINESS None 13. CITY COUNCIL ROUNDTABLE Councilmember Bernatz: I had a great time at the Boeckman Middle School auditorium last weekend. Farmington High School put on the tale of Robin Hood, and it was great to see many in our community come out to support our youth. Councilmember Lien: I had a blast at Turkey Bingo. Thank you to everyone for putting that event together. Page 8 of 229 Regular City Council Meeting Minutes of November 20, 2023 Page 4 of 5 Councilmember Wilson: I was at the Farmington Patriotic Day Celebration, and it was very well attended. There are too many people to thank, including Farmington American Legion Commander Doug Taube, the Veterans Organizations, and the School District, who put a ton of time and effort into this event. The Farmington High School Band and Choir were just fantastic. Attorney Koch: I was admiring this lovely magazine of the Farmington Currents and am excited to dive into it later. City Administrator Gorski: City Offices will be closed on Thursday and Friday in observance of Thanksgiving. Also thank you to Mr. Slavik for being here and giving us an update. Director Kuennen: The Eberts apartments construction project is moving right along. We are building out a way to communicate with the public with weekly touch points. Our Building Official and the Building Inspector Staff are meeting with the construction manager there. Starting very soon, we will be receiving a weekly list of what’s been done and what is coming up. If, for example, cranes are going to be delivered, we will be able to know in advance and communicate that. There will be three cranes on site over the course of the construction, with the first in the middle of the site and should be there by December 18th. We are also working to provide some drone footage so peo ple can see what the construction looks like with a snapshot once a week, so we can all watch the construction come up out of the ground. This will be a way to communicate and provide proactive information to our residents and our downtown businesses. More to come. Thank you for the great EDA discussion, as well. Director Powell: Reminder there is a Water Board meeting next Monday. On Wednesday, we are having our second informational meeting for the 2024 Street Improvements, which is the reconstruction area at 6th and Maple. You may notice, out in the field especially, east of Highway 3, we will be doing our sidewalk inventory using GPS and mapping that electronically through GIS this year for the first time. For the benefit of the Commissioner, as City Engineer/Public Works Director, I really appreciate the responsiveness and communicativeness of his Staff, particularly with the County Road 50 improvements and the schedule being update almost weekly. That was really helpful. Director Omlid: The Open Door Food Pantry will be at the Rambling River Center tomorrow from 3 – 4:30 p.m. As a reminder, they come the third Tuesday of the month. The next two Saturdays we have holiday events at the Rambling River Center. Both are from 9 a.m. – Noon. This Saturday, we have Trains and Treats, sponsored by the Rambling River Model Railroad Club. Saturday, December 2nd, we have the Secret Holiday Shop. Kids get to shop with volunteers while parents visit the downtown businesses, and we are still in need of volunteers to help kids shop, wrap, and do tasks that morning. Information is on the www.FarmingtonMN.gov website. You only need to be in middle school up to 102 years old to volunteer. Page 9 of 229 Regular City Council Meeting Minutes of November 20, 2023 Page 5 of 5 The Holiday Light Tour has 16 homes signed up as of today. The deadline is November 27th, and your lights need to be turned on by December 4th. More information is on the City’s homepage, including the registration link. Director Sommerland: As Commissioner Slavik mentioned, residents should have received their Dakota County tax statements. Finance is busy preparing the proposed final budget and will be presenting this to you at the next meeting. Chief Rutherford: It is Toys for Town season. I always worry that we won’t have enough toys or monetary donations, or enough volunteers for this event. We are seeking new unwrapped toys for kids from birth up to age 13. If your heart is set on taking care of kids aged 14-17, we would probably look for a financial donation from you so that we can purchase gift cards for them. Financial donations also go towards providing a really nice holiday meal for each family involved. If you’re looking to volunteer your time, wrapping day is Saturday, December 16 th, from 9 a.m. – Noon at the high school. Farmington always delivers, but I worry we won’t have enough volunteers. Toys, time, or treasure – whatever you prefer to donate, we’ll take it. Mayor Hoyt: Thank you to Riverview Elementary 4th graders who invited me last week to talk about local government, what we do, and our core services. I somehow got convinced to do the “Gritty” dance, and I think that was the highlight of their day. It’s always fun getting to talk to our youth. Over the summer, Lynn and I met with some of the kids from community education, who came to tour City Hall and Fire Station #1, and that was fun. It’s that time of year when there is a lot of stuff going on. You’ll find the winter edition of the Farmington Currents in your mailbox. Please take the time to read through it – there is a lot of good information in here. Quarterly events are on the back, and you can plug those into your phone, so that you don’t forget about them. You’ll find information on projects, park and recreation, and other tidbits. The Currents is on the City’s website, social media channels, and mailed to all residents and businesses within the community. 14. ADJOURNMENT Motion was made by Councilmember Lien and seconded by Councilmember Bernatz to adjourn the meeting at 7:30 p.m. Motion carried: 4 ayes / 0 nays. Respectfully submitted, Shirley R Buecksler City Clerk Page 10 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Shirley Buecksler, City Clerk Department: Administration Subject: Minutes of the December 4, 2023 Regular City Council Meeting Meeting: Regular Council - Dec 18 2023 INTRODUCTION: For Council review and approval are the minutes of the Regular City Council Meeting dated December 4, 2023. ACTION REQUESTED: Approve the minutes of the Regular City Council meeting dated December 4, 2023. ATTACHMENTS: 12.04.23 Council Minutes Page 11 of 229 Regular City Council Meeting Minutes of December 4, 2023 Page 1 of 5 City of Farmington Regular Council Meeting Minutes Monday, December 4, 2023 The City Council met in regular session on Monday, December 4, 2023, at Farmington City Hall, 430 3rd Street, Farmington, Minnesota. 1. CALL TO ORDER Mayor Hoyt called the meeting to order at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE Mayor Hoyt led everyone in the Pledge of Allegiance. 3. ROLL CALL Members Present: Mayor Joshua Hoyt Councilmembers Holly Bernatz, Nick Lien, Katie Porter, and Steve Wilson Members Absent: None Staff Present: Lynn Gorski, City Administrator Julie Flaten, Asst City Administrator/HR Director Leah Koch, City Attorney Deanna Kuennen, Community & Economic Development Director Kim Sommerland, Finance Director Justin Elvestad, Fire Chief Kellee Omlid, Parks & Recreation Director Gary Rutherford, Police Chief John Powell, Public Works Director Shirley Buecksler, City Clerk 4. APPROVE AGENDA Motion was made by Councilmember Porter and seconded by Councilmember Wilson to approve the agenda, as presented. Motion carried: 5 ayes / 0 nays 5. ANNOUNCEMENTS / COMMENDATIONS None. 6. CITIZENS COMMENTS / RESPONSES TO COMMENTS None. Page 12 of 229 Regular City Council Meeting Minutes of December 4, 2023 Page 2 of 5 7. CONSENT AGENDA 7.1 2024 License and permit renewals including: 3.2 Beer Off-Sale: Kwik Trip #443, 18290 Pilot Knob Road Kwik Trip, #693, 217 Elm Street Tobacco: Farmington Amcon, 957 8th Street Farmington Liquors, 18350 Pilot Knob Road Farmington Tobacco & Vape, 919 8th Street Holiday #3825, 21060 Chippendale Avenue Kwik Trip #443, 18290 Pilot Knob Road Kwik Trip #693, 217 Elm Street, Premium Tobacco and Vape, 18350 Pilot Knob Road 7.2 Ordinance 023-777 Amending Title 6, Chapter 2, Sections 1, 2, 3, 5, 6, 8 and 16 of the Farmington City Code as it Relates to Licensing of Dogs 7.3 Payment of claims for the period of November 15 – 28, 2023 in the amount of $921,635.60 7.4 Increase in the annual Fire Relief benefit level to $9,500 effective January 1, 2024 7.5 Resolution R75-23 Declaring Items as Surplus and Authorizing Disposal: 2008 Chevrolet Silverado 2500 7.6 Staff changes and recommendations including the appointments of: • Melissa Geis as temporary front desk employee • Alayna Ellis, Logan Stenson, and Josh Stoneburg as Warming House Attendants 7.7 Federal regional solicitation grant application for North Creek Regional Greenway Trail 7.8 Resolution R74-23 Accepting a Donation of $500 from Nancy Bohn to the Rambling River Center 7.9 Dakota County Community Waste Abatement 2024 Grant Agreement Motion was made by Councilmember Wilson and seconded by Councilmember Bernatz to approve the Consent Agenda, as presented. Motion carried: 5 ayes / 0 nays. 8. PUBLIC HEARINGS 8.1 2024 Final Tax Levy and Budget Mayor Hoyt opened the public hearing at 7:01 p.m. Director Sommerland presented the 2024 final tax levy and budget. State Statute requires that the final property tax levy for the upcoming year be certified to Dakota County on or before December 28, 2023. City Council discussed the 2024 Page 13 of 229 Regular City Council Meeting Minutes of December 4, 2023 Page 3 of 5 General Fund budget and tax levy at work sessions in August and September. The proposed final General Fund budget and total levy amounts are shown below: 2023 Budget 2024 Proposed Budget Increase (Decrease) General Fund Expenditures $16,884,783 $18,884,407 11.84% General Fund Revenues 3,796,853 4,690,700 23.54% Fiscal Disparities 2,407,636 2,098,009 (12.86)% General Fund Levy 10,680,294 12,095,698 13.25% EDA Levy - 150,000 100% Debt Levy 2,069,565 1,763,100 (14.81)% Net Tax Levy $12,749,859 $14,008,798 9.87% Council approved the preliminary 2024 tax levy on September 18, 2023 and set the amount at $14,308,798. The proposed final 2024 tax levy is $14,008,798, a reduction of $300,000 from the preliminary levy. One resident addressed the Council with questions regarding the tax amount shown on her property tax statement. Mayor Hoyt explained that the City of Farmington is only one part of her taxes and helped her to see on her statement the tax amounts listed for the city, county, and school district. Seeing no one else wishing to speak, Mayor Hoyt closed the public hearing at 7:22 p.m. Motion was made by Councilmember Wilson and seconded by Councilmember Lien to approve the 2024 budget and adopt Resolution R76-23 Approving the 2023 Final Tax Levy Collectible in 2024. Motion carried: 5 ayes / 0 nays. 8.2 2024 Fee Schedule Mayor Hoyt opened the public hearing at 7:23 p.m. City Clerk Buecksler presented the fee schedule and changes recommended by management for 2024. Seeing no one wishing to speak, Mayor Hoyt closed the public hearing at 7:28 p.m. Motion was made by Councilmember Porter and seconded by Councilmember Bernatz to pass Ordinance 023-779 Establishing Charges and Fees for Licenses, Permits, or Other City Approvals and Services for Calendar Year 2024. Motion carried: 5 ayes / 0 nays. Page 14 of 229 Regular City Council Meeting Minutes of December 4, 2023 Page 4 of 5 8.3 2024 Liquor License Renewals Mayor Hoyt opened the public hearing at 7:29 p.m. City Clerk Buecksler presented the 2024 liquor license renewals including: On-Sale Intoxicating Liquor and On-Sale Sunday Liquor Licenses: A This Little Piggy Catering, Inc., 22280 Chippendale Avenue West Bourbon Butcher, 20700 Chippendale Avenue West Celts Pub & Grill, 200 3rd Street El Charro Mexican Restaurant, 120 Elm Street Farmington Lanes, 27 5th Street Farmington Tap House, 309 3rd Street Las Enchiladas, 18500 Pilot Knob Road, Suite A Nacho’s Mexican Grill and Bar, 958 8th Street Pizza Man, 409 3rd Stret The Mug, 18450 Pilot Knob Road, Suite A Club and On-Sale Sunday Licenses: VFW 7662/Sypal Lundgren Post, 421 3rd Street On-Sale wine, 3.2 Beer and Intoxicating Malt Liquor Licenses: Fountain Valley Golf Club, 2830 220th Street West Seeing no one wishing to speak, Mayor Hoyt closed the public hearing at 7:30 p.m. Motion was made by Councilmember Bernatz and seconded by Councilmember Wilson to approve the liquor license renewals for 2024 as listed. Motion carried: 5 ayes / 0 nays. 9. AWARD OF CONTRACT None 10. PETITIONS, REQUESTS AND COMMUNICATIONS None 11. UNFINISHED BUSINESS None Motion was made by Councilmember Porter and seconded by Councilmember Bernatz to close the Regular City Council meeting at 7:31 p.m. and enter into a closed session pursuant to Minnesota Statute 13D.05, subdivision 3(b) for a confidential, attorney-client privileged discussion of potential PFAS litigation, AFFF Multi -District Litigation No. 2873, including potential participation in the 3M and Dupont Settlements. Motion carried: 5 ayes / 0 nays. Page 15 of 229 Regular City Council Meeting Minutes of December 4, 2023 Page 5 of 5 12. NEW BUSINESS 12.1 Closed Session to Discuss PFAS Settlement Mayor Hoyt opened the closed session at 7:33 p.m. Following discussion, the closed session was adjourned at 8:19 p.m. Mayor Hoyt reopened the Regular City Council Meeting at 8:20 p.m. 12.2 Council Decision Regarding PFAS Settlement Motion was made by Councilmember Lien and seconded by Councilmember Porter to opt in to the AFFF Multi-District Litigation No. 2873 – PFAS Litigation Settlements. Motion carried: 5 ayes / 0 nays. 13. CITY COUNCIL ROUNDTABLE None. 14. ADJOURNMENT Motion was made by Councilmember Porter and seconded by Councilmember Lien to adjourn the meeting at 8:21 p.m. Motion carried: 5 ayes / 0 nays. Respectfully submitted, Shirley R Buecksler City Clerk Page 16 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Shirley Buecksler, City Clerk Department: Administration Subject: Various Business License Renewals for 2024 Meeting: Regular Council - Dec 18 2023 INTRODUCTION: City Council has the authority to approve On-Sale and Off-Sale Beer Licenses, Consumption and Display Permits, and Tobacco Licenses. DISCUSSION: The following establishments have submitted their application for 2024 renewal: Consumption and Display Permit Muddy Waters Studio, 511 Elm Street 3.2 Beer Off-Sale Speedway #4534, 18520 Pilot Knob Road Tobacco Speedway #4534, 18520 Pilot Knob Road All appropriate forms, insurance, and fees have been submitted. The Police Department is currently conducting the background investigations. Staff is recommending approval pending the background investigation. BUDGET IMPACT: Fees collected are included in the revenue estimates of the City's budget. ACTION REQUESTED: Approve the licenses listed above for 2024, pending completed background investigations by the Police Department. Page 17 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Leah Koch, City Attorney Department: City Attorney Subject: Retainer Agreement with Lockridge Grindal Nauen regarding PFAS Settlements Meeting: Regular Council - Dec 18 2023 INTRODUCTION: On December 4, 2023, the City Council discussed the PFAS litigation, AFFF Multi-District Litigation No. 2873, including participation in the 3M and DuPont Settlements with assistance from the law firm Lockridge Grindal Nauen PLLP. DISCUSSION: PFAS has been detected in water sources worldwide leading to concerns about their impact. The City of Farmington is eligible to be part of the class action lawsuit, even with only small traces of PFAS in the City's water. Lockridge Grindal Nauen is representing a number of Minnesota cities to assist in making claims against the defendant companies in the Multi-District litigation to receive a share of the settlement funds. Lockridge Grindal Nauen only receives payment if the City receives settlement funds. Staff recommends entering into this retainer agreement with Lockridge Grindal Nauen to represent the City of Farmington in this lawsuit. More information about the settlements can be found at www.PFASWaterSettlement.com and more information about PFAS in general can be found on the Minnesota Department of Health website. BUDGET IMPACT: Not applicable ACTION REQUESTED: Approve retainer agreement with Lockridge Grindal Nauen for representation in the AFFF Multi- District Litigation No. 2873. ATTACHMENTS: 2023-12-13 - Farmington- City PFAS Retainer Page 18 of 229 1 RETAINER AGREEMENT The City of Farmington, Minnesota (“Client”) retains the Law Firms of Lockridge Grindal Nauen P.L.L.P. and Napoli Shkolnik (collectively “Law Firms”) , as our attorneys to prosecute any legal claim for negligence (or other viable causes of action) against any and all parties individuals and/or corporations that are found to be liable under the law for injuries and/or property damages suffered by us and/or our members arising out of the contamination of water supplies by per- and polyfluoroalkyl substances (PFAS) and other hazardous water contaminants. We specifically agree as follows: 1.FEE PERCENTAGE: Client and Law Firms agree that the Law Firms shall be paid Twenty-Five Percent (25%) of the sum recovered, whether by suit, settlement or otherwise. Client will not be liable to pay the Law Firms if there is not any form of recovery. 2.DISBURSEMENTS: In the event there is no recovery, the Client shall not be obligated to pay the Law Firms any fees for services rendered, including disbursements. Disbursements may include some of the following expenses: court filing fees, sheriff fees, medical and hospital report/record fees, doctor’s report, court stenographer fees, deposition costs, expert fees for expert depositions and court appearances, trial exhibits, computer on-line search fees, express mail, postage, photocopy charges, document management charges, long distance telephone charges among other charges. Document management charges are the fees charged by the law firm for processing documents during litigation, such as medical records, documents produced by defendant(s) and/or other parties, etc. Processing of the documents may include but is not limited to the following: (1) scanning; (2) conversion of native files to PDF documents; (3) OCR (optical code recognition); and/or (4) indexing. At the time of settlement and distribution of proceeds, these expenses shall be deducted from the Client’ share after computation of the Attorney’s Fee. 3.COMPUTATION OF FEES: The contingency fee shall be computed on the gross recovery, resulting in a net settlement (or judgment), from which all appropriate disbursements in connection with the institution and prosecution of this claim is deducted, as set forth in paragraph 2 above. Examples of how a contingency fee is computed are as follows: Gross settlement $100.00 25% Attorney’s Fee $ 25.00 Net settlement $ 75.00 Disbursements -$ 10.00 Net to Client $ 65.00 4.WITHDRAWAL: The Law Firms expressly reserve the right to withdraw their representation at any time upon reasonable notification to the Client. In the event that the Client advise the Law Firms to discontinue the handling of this claim, but proceeds to litigate their claim to finality, Client agree to compensate the Law Firms a reasonable amount for their services, based upon the time spent on this claim on an hourly basis or under such other arrangement that may be agreed upon by the parties, if a lesser amount than the hourly amount. The Client understand that the Law Firms have conditionally accepted this case based upon independent confirmation of all Page 19 of 229 2 facts and injuries claimed to have been sustained by Client. File transfer from the Law Firms shall not include documents or attorney work product regarding the general liability of the defendants. 5.APPEALS: The above contingency fee does not contemplate any appeal. The Law Firms are under no duty to perfect or prosecute such appeal until a satisfactory fee arrangement is made in writing regarding costs and counsel fees. 6.STATUTE OF LIMITATIONS: We understand that any lawsuit must be commenced within a certain limited time period, (that may vary, depending upon the defendant) starting from the "discovery of the injury" or of "the date when through the exercise of reasonable diligence such injury should have been discovered… whichever is earlier". We further understand that the Statute of Limitations period for any case must be investigated, and that this Agreement is made subject to that investigation as well as an investigation of the entire case. 7.RESULTS NOT GUARANTEED: No attorney can accurately predict the outcome of any legal matter, accordingly, no representations are made, either expressly or impliedly, as to the final outcome of this matter. We further understand that we must immediately report any changes in address and telephone number to the Law Firms. 8.AUTHORIZATION TO INITIATE LITIGATION: Attorneys are hereby authorized to initiate litigation on behalf of Client asserting any legal claim for negligence (or other viable causes of action) against any and all parties individuals and/or corporations that are found to be liable under the law for injuries and/or property damages suffered by Client arising out of the contamination by per- and polyfluoroalkyl substances (PFAS). Attorneys shall coordinate with City staff, including the City Administrator and Assistant City Administrator regarding such litigation. 9.CONFLICTS OF INTEREST: Client acknowledges that Lockridge Grindal Nauen P.L.L.P. (“LGN”) represents individuals associated with Douglas Corporation and understands that LGN may not represent Client in any action against Douglas Corporation. 10.APPROVAL NECESSARY FOR SETTLEMENT: Attorneys have full authority to prepare, sign and file all pleadings, drafts, authorizations, and papers as shall be reasonably necessary to pursue this representation. Attorneys are also authorized and empowered to act as Client’s negotiator in any and all negotiations concerning the subject of this Agreement, subject to approval of any settlement by the Client. 11.ASSOCIATION OF OTHER ATTORNEYS: The Law Firms may, at their own expense, use or associate other attorneys in the representation of the aforesaid claims of the Client, but such association does not alter the computation of fees in section 3 above. Client understands that Law Firms employ numerous attorneys that may work on Client’ case. 12.ASSOCIATE COUNSEL: The Law Firms may participate in the division of fees in this case and assume joint responsibility for the representation of the Client either in the event that the Attorney retains associate counsel or that the Client later choose new counsel, provided that the total fee to the Client does not increase as a result of the division of fees and that the attorneys involved have agreed to the division of fees and assumption of joint responsibility. The Client will be advised of such joint responsibility and full disclosure will be made to Client regarding the division of fees so that the consent of the Client can be obtained. Page 20 of 229 3 13.MINNESOTA LAW TO APPLY: This Agreement shall be considered construed under and in accordance with the laws of the State of Minnesota and the rights, duties, and obligations of Client and of Attorneys regarding Attorney’s representation of Client and regarding anything covered by this Agreement shall be governed by the laws of the State of Minnesota. 14.MEDIATION: In the event the Law Firms and the Client are unable to resolve any and all disputes, controversies, claims or demands arising out of or relating to (1) this Agreement or (2) any provision hereof or (3) the providing of services by the Law Firms to Client or (4) the relationship between the Law Firms and Client, whether either party may make a written request to the other party to mediate the dispute. Upon such notice, the parties shall jointly select a mediator to assist in resolving the dispute. The parties shall share equally in the costs of the mediator, but shall otherwise pay their own costs related to the mediation. If either party determines they are not able to agree on a single mediator, they shall notify the other party in writing. Upon such notice, each party shall be responsible for selecting their own mediator. The two mediators shall then select a third. The mediation shall then be conducted by the three mediator panel. Each party shall be responsible for the costs of the mediator it selected and shall share equally in the costs of the third mediator. In the event mediation is unsuccessful, either party may exercise its legal or equitable rights. 15.PARTIES BOUND: This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, legal representative, successors, and assigns. Client or the Law Firms can execute this document electronically, by indicating “I agree” (or similar language) via electronic mail after receiving the Agreement via electronic mail. By indicating “I agree” (or similar language) Client will be bound by the terms of the Agreement and is executing the document electronically via Client’ electronic signature, indicated as “/s/” in the signature field and elects the Law Firms advance disbursements. 16.LEGAL CONSTRUCTION: In case any one or more of the provisions contained in this Agreement shall for any reason be held invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions thereof and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. 17.PRIOR AGREEMENTS SUPERSEDED: This Agreement constitutes the sole and only Agreement of the parties hereto and supersedes any prior understandings or written or oral agreement between the parties respecting the within subject matter. We certify and acknowledge that we have had the opportunity to read this Agreement and have answered any questions pertaining thereto. We further state that we have voluntarily entered into this Agreement fully aware of the terms and conditions. Page 21 of 229 4 SIGNED AND ACCEPTED ON THIS _____ day of_______________, 2023 THIS CONTRACT IS SUBJECT TO ARBITRATION UNDER THE FEDERAL ARBITRATION ACT AND THE MINNESOTA GENERAL ARBITRATION STATUTE CITY OF FARMINGTON, MN By: _______Joshua Hoyt______________________ Printed Name Email Address:_JHoyt@FarmingtonMN.gov________ Title:____Mayor_________________________ Address: _430 Third St, Farmington, MN 55024 Phone:___651-280-6800___________________ LOCKRIDGE GRINDAL NAUEN P.L.L.P. ________________________________ David J. Zoll NAPOLI SHKOLNIK ________________________________ Paul Napoli Page 22 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Josh Lawrenz, Building Official Department: Community Development Subject: Contract Between the City of Farmington and 5 Star Inspections Inc for Electrical Inspections Services Meeting: Regular Council - Dec 18 2023 INTRODUCTION: Proposed contract agreement between the City of Farmington and 5 Star Inspections, Inc. to provide electrical inspections to the City of Farmington. DISCUSSION: Currently, electrical inspections throughout the city are being performed by Michael Hawke. The City of Farmington's contract agreement with Mr. Hawke is valid until December 31, 2024, with contractual language allowing either party to terminate the agreement with (7) days of written notice. While no issues exist with the current inspections or contract, conversations with Mr. Hawke indicate the possibility of upcoming conditions that may result in his early retirement and ending the contract prior to December 31, 2024. Additionally, clause 1.9 of our current contract identifies that the agreement is not exclusive and shall not preclude the City from engaging any other person or entity to perform inspection of electrical installations. To provide continuous uninterrupted electrical inspections services, the City of Farmington has identified and sought the services of Brian Grey, owner of 5 Star Inspection, Inc. Mr. Grey is currently providing electrical inspections services to multiple surrounding communities and is knowledgeable and familiar with our current permit processing software. There will be no change in compensation between our current contract with Michael Hawke and the proposed contract with 5 Star Inspections, Inc. 5 Star Inspections, Inc. will, however, allow more flexibility to contractor/homeowners with scheduling now available Monday through Friday during hours when City offices are open to the public. BUDGET IMPACT: None ACTION REQUESTED: Approve the contract between the City of Farmington and 5 Star Inspections, Inc. and authorize the execution of the agreement. Page 23 of 229 ATTACHMENTS: 5 Star Electrical Contract Page 24 of 229 228959v1 PROFESSIONAL SERVICES AGREEMENT FOR ELECTRICAL SERVICES AGREEMENT made this _______ day of ___________________, 2023, by and between the CITY OF FARMINGTON, a Minnesota municipal corporation ("City") and 5 STAR INSPECTIONS, INC., a Minnesota corporation ("Contractor"). RECITALS A. The City requires the services of a professional electrical inspector to administer the provisions of 4-1-6: Electrical Inspections of the Farmington City Code and the laws and rules regulating inspections of electrical installations in the State of Minnesota; B. Contractor is a qualified State of Minnesota electrical inspector who is properly licensed, and is willing and able to perform such services. NOW, THEREFORE, in consideration of the mutual covenants and undertakings hereinafter stated, the parties to this Agreement agree that the Contractor shall continue to be retained to provide electrical inspections, to verify compliance with applicable electrical codes and ordinances in a manner established by the City’s building official, as follows: 1. SERVICES TO BE PERFORMED. Contractor will perform the services of electrical inspector pursuant to the terms of 4-1-6: Electrical Inspections of the Farmington City Code and in compliance with all laws, rules and regulations related to electrical installations and services. A. Agreement Not Exclusive. This Agreement shall not preclude the City from engaging any other person or entity to perform inspection of electrical installations, nor shall this Agreement preclude Contractor from providing similar or related services for any other entity. 2. SCOPE OF SERVICES. Contractor agrees to comply with the following in providing the services under this Agreement: A. Maintain license as a master or journeyman electrician in the State of Minnesota. B. Conform to all applicable federal, state and local laws, codes, ordinances and regulations, including, but not limited to, any applicable conflict of interest provisions. C. Receive requests for electrical inspections and schedule electrical inspections during a time frame approved by the City. D. Perform inspections on the day requested, except as approved by the City. Provide appropriate identification when conducting city inspections. E. Perform electrical inspections for compliance with the current version of the State Electrical Code and related laws, rules and City ordinances. Such services shall be made available by the contractor to the City on all weekdays, during all hours that the City offices are open to the public. The City may contract with additional contractors to provide electrical inspection services if deemed necessary. Page 25 of 229 228959v1 F. Be available by phone during established hours, as determined by the City, to receive calls related to code requirements, inspection procedures and other electrical inspection matters. It is understood that the normal hours are generally from 8:00 a.m. to 4:30 p.m. G. Provide the City with detailed written reports documenting each electrical inspection in a form approved by the City. Such reports shall be completed and submitted within one business day of the permit applicant’s request unless otherwise agreed to by the City. H. Be available for inspections, consultation, meetings, and other inspection related duties that may not be associated with an electrical permit. I. Be available on a limited basis to meet customers at scheduled times and locations. J. Write correction notices and perform follow-up inspections to obtain compliance. K. Follow inspection procedures and policies established by the City. L. Provide a City approved back-up plan that indicates how inspections will be performed during high volume periods, sick days, vacation time, etc. M. Ensure that all subcontractors, authorized by the City, comply with all terms of this Agreement. 3. CITY RESPONSIBILITIES. During the term of this Contract, the City will be responsible for the following: A. Receive and process electrical permit applications. B. Collect electrical permit fees and issue permits. C. Input electrical inspection results provided from the contractor into the permit information management system (PIMS). D. Maintain permit and inspection records. E. Pay the Contractor monthly on completed permits. 4. COMPENSATION. Contractor will receive 75% of the electrical permit fee. Payment will be made on a monthly basis for completed electrical permits. At the beginning or at the end of this Agreement, the amount due the Contractor will be prorated based upon the percentage of inspections completed. The Contractor will be responsible for the Contractor’s costs, transportation, telephone, stickers, correction notices and other related costs necessary to complete the inspections. The City will pay invoices within 35 days of receipt. 5. DOCUMENTS. All reports, plans, models, software, diagrams, analyses, and information generated in connection with performance of this Agreement shall be the property of the City. The City may use the information for its purposes. The City shall be the copyright owner. The ves ting of the City’s ownership of the copyright in materials created by the Contractor shall be contingent upon the City’s fulfillment of its payment obligations hereunder. The Contractor shall be allowed to use a description of the services provided hereunder, including the name of the City, and photographs or Page 26 of 229 228959v1 renderings of any projects which develop from the planning or other services provided by the Contractor, in the normal course of its marketing activities. 6. COMPLIANCE WITH LAWS AND REGULATIONS. In providing services hereunder, Contractor shall abide by all statutes, ordinances, rules and regulations pertaining to the provisions of services to be provided. 7. STANDARD OF CARE. Contractor shall exercise the same degrees of care, skill, and diligence in the performance of the services as is ordinarily possessed and exercised by a professional contractor under similar circumstances. No other warranty, expressed or implied, is included in this Agreement. City shall not be responsible for discovering deficiencies in the accuracy of Contractor’s services. 8. INDEMNIFICATION. Contractor shall indemnify and hold harmless the City, its officers, agents, and employees, of and from any and all claims, demands, actions, causes of action, including costs and attorney's fees, arising out of or by reason of the execution or performance of the work or services or failure to adequately perform the services provided for herein and further agrees to defend at its sole cost and expense any action or proceeding commenced for the purpose of asserting any claim of whatsoever character arising hereunder. 9. INSURANCE. Contractor shall secure and maintain such insurance as will protect Contractor from claims under the Worker's Compensation Acts, automobile liability, and from claims for bodily injury, death, or property damage which may arise from the performance of services under this Agreement. Such insurance shall be written for amounts not less than: Commercial General Liability (or in combination with an umbrella policy) $2,000,000 Each Occurrence $2,000,000 Products/Completed Operations Aggregate $2,000,000 Annual Aggregate The following coverages shall be included: Personal and Advertising Injury Blanket Contractual Liability Products and Completed Operations Liability Automobile Liability $2,000,000 Combined Single Limit – Bodily Injury & Property Damage Including Owned, Hired & Non-Owned Automobiles Workers Compensation Workers’ Compensation insurance in accordance with the statutory requirements of the State of Minnesota, including Employer’s Liability with minimum limits are as follows: • $500,000 – Bodily Injury by Disease per employee • $500,000 – Bodily Injury by Disease aggregate • $500,000 – Bodily Injury by Accident The City shall be named as an additional insured on the general liability and umbrella policies on a primary and non-contributory basis. Page 27 of 229 228959v1 The Contractor shall secure and maintain a professional liability insurance policy. Said policy shall insure payment of damages for legal liability arising out of the performance of professional services for the City, in the insured's capacity as Contractor, if such legal liability is caused by a negligent act, error or omission of the insured or any person or organization for which the insured is legally liable. The policy shall provide minimum limits of $2,000,000 with a deductible maximum of $125,000 unless the City agrees to a higher deductible. Before commencing work, the Contractor, and every approved subcontractor, shall provide the City a certificate of insurance evidencing the required insurance coverage in a form acceptable to City. 10. INDEPENDENT CONTRACTOR. The City hereby retains Contractor as an independent contractor upon the terms and conditions set forth in this Agreement. Contractor is not an employee of the City and is free to contract with other entities as provided herein. Contractor shall be responsible for selecting the means and methods of performing the work. Contractor shall furnish any and all supplies, equipment, and incidentals necessary for Contractor's performance under this Agreement. City and Contractor agree that Contractor shall not at any time or in any manner represent that Contractor or any of Contractor's agents or employees are in any manner agents or employees of the City. Contractor shall be exclusively responsible under this Agreement for Contractor's own FICA payments, workers compensation payments, unemployment compensation payments, withholding amounts, and/or self-employment taxes if any such payments, amounts, or taxes are required to be paid by law or regulation. 11. SUBCONTRACTORS. Contractor shall not enter into subcontracts for services provided under this Agreement without the express written consent of the City and shall comply with all terms of this Agreement. Contractor shall comply with Minnesota Statutes §471.425. Contractor must pay subcontractors for all undisputed services provided by subcontractors within ten (10) days of Contractor’s receipt of payment from City. Contractor must pay interest of one and five-tenths (1.5%) percent per month or any part of a month to subcontractors on any undisputed amount not paid on time to subcontractors. The minimum monthly interest penalty payment for an unpaid balance of One Hundred Dollars ($100.00) or more is Ten Dollars ($10.00). 12. ASSIGNMENT. Neither party shall assign this Agreement, nor any interest arising herein, without the written consent of the other party. 13. WAIVER. Any waiver by either party of a breach of any provisions of this Agreement shall not affect, in any respect, the validity of the remainder of this Agreement. 14. ENTIRE AGREEMENT. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 15. CONTROLLING LAW/VENUE. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. In the event of litigation, the exclusive venue shall be in the District Court of the State of Minnesota for Dakota County. 16. COPYRIGHT. Contractor shall defend actions or claims charging infringement of any copyright or patent by reason of the use or adoption of any designs, drawings or specifications supplied by it, and it shall hold harmless the City from loss or damage resulting there from. Page 28 of 229 228959v1 17. PATENTED DEVICES, MATERIALS AND PROCESSES. If the contract requires, or Contractor desires, the use of any design, devise, material or process covered by letters, patent or copyright, trademark or trade name, Contractor shall provide for such use by suitable legal agreement with the patentee or owner and a copy of said agreement shall be filed with the City. If no such agreement is made or filed as noted, Contractor shall indemnify and hold harmless the City from any and all claims for infringement by reason of the use of any such patented designed, device, material or process, or any trademark or trade name or copyright in connection with the services agreed to be performed under the contract, and shall indemnify and defend the City for any costs, liability, expenses and attorney's fees that result from any such infringement. 18. RECORDS. Contractor shall maintain complete and accurate records of time and expense involved in the performance of services. 19. AUDIT DISCLOSURE AND DATA PRACTICES. Any reports, information, data, etc. given to, or prepared or assembled by the Contractor under this Agreement which the City requests to be kept confidential, shall not be made available to any individual or organization without the City’s prior written approval. The books, records, documents and accounting procedures and practices of the Contractor or other parties relevant to this Agreement are subject to examination by the City and either the Legislative Auditor or the State Auditor for a period of six (6) years after the effective date of this Agreement. This Agreement is subject to the Minnesota Government Data Practice Act, Minnesota Statutes Chapter 13 (Data Practices Act). All government data, as defined in the Data Practices Act Section 13.02, Subd. 7, which is created, collected, received, stored, used, maintained, or disseminated by Contractor in performing any of the functions of the City during performance of this Agreement is subject to the requirements of the Data Practice Act and Contractor shall comply with those requirements as if it were a government entity. All subcontracts entered into by Contractor in relation to this Agreement shall contain similar Data Practices Act compliance language. 20. NON-DISCRIMINATION. The Contractor agrees during the life of this Agreement not to discriminate against any employee, application for employment, or other individual because of race, color, sex, age, creed, national origin, sexual preference, or any other basis prohibited by federal, state, or local law. The Contractor will include a similar provision in all subcontracts entered into for performance of this Agreement. 21. NOTICES. Any notices required by this Agreement shall either be personally delivered or sent by certified or registered mail and addressed as follows: To the Contractor: 5 Start Inspections, Inc. C/O Brian Grey 37517 375th Ave Saint Peter, MN 56082 To the City: City of Farmington 430 Third Street Farmington, MN 55024 C/O Josh Lawrenz, Building Official 22. BACKGROUND CHECKS. The City must receive from the Contractor and each Contractor’s employee and subcontractors written authorization permitting the City of Farmington Police Page 29 of 229 228959v1 Department to perform a criminal history background check and further authorize the Police Department to release the information obtained to the Farmington City Council, City Administrator and other appropriate employees. The City reserves the right to deny access to City facilities to those Contractors , Contractor’s employees, or subcontractors that it deems inappropriate. 23. TERM. This Agreement shall commence on the date of execution of this Agreement and shall expire on December 31, 2024. Thereafter, this Agreement shall automatically renew upon the same terms and conditions for successive one year terms unless either party gives notice of termination at least thirty (30) days prior to the expiration date of the relevant term. 24. TERMINATION OF THE AGREEMENT. The City may terminate this Agreement or any part thereof at any time, upon written notice to Contractor, effective upon delivery including delivery by facsimile or email. In such event, the Contractor shall cease all work and delivery, save those necessary to protect the public health, welfare and safety. Contractor will be entitled to compensation for work performed up to the date of termination based upon a pro rata basis. Upon thirty (30) days’ written notice to the City, this Agreement may be terminated by the Contractor should the City fail to substantially perform in accordance with the Agreement through no fault of the Contractor. Dated: December 18, 2023 . CITY OF FARMINGTON BY: _______________________________________ Joshua Hoyt, Mayor AND Shirley R Buecksler, City Clerk Dated: __________________, 2023. 5 STAR INSPECTIONS, INC. BY: Brian Grey, President Page 30 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Tony Wippler, Planning Manager Department: Community Development Subject: Denmark Housing Addition First Amendment to Development Contract Meeting: Regular Council - Dec 18 2023 INTRODUCTION: Attached for Council's consideration is a First Amendment to Development Contract for the Denmark Housing Addition. DISCUSSION: The Dakota County Community Development Agency (CDA) is the developer of the Denmark Housing Addition which will provide 40 workforce rental townhomes south of St. Michael's Church. City Council approved the Development Contract on January 17, 2023. The development was proposed to share an access to Denmark Avenue with the Dakota Meadows development to the south. However, the Dakota Meadows development has stalled and the CDA was unable to secure an easement for the shared drive from the adjacent property owner. The CDA has since decided to move forward with their project as funding for the development is now available. The CDA is requesting that they be allowed to construct a temporary access on their property until such a time that the Dakota Meadows property to the south is developed and the shared access is installed. Once that occurs, the temporary access would be removed. The Dakota County Plat Commission reviewed this request on November 22, 2023, as the County is responsible for access management along Denmark Avenue. The Plat Commission approved the temporary access provided it is removed upon construction of the shared access with the Dakota Meadows development to the south. The attachment amendment memorializes the allowance of the temporary access as well as when it needs to be removed. The CDA has reviewed the attached development contract amendment and finds it acceptable. BUDGET IMPACT: Not applicable ACTION REQUESTED: Approve the attached First Amendment to Development Contract between the City of Farmington and Denmark Trail Workforce Housing Limited Partnership. ATTACHMENTS: Page 31 of 229 FIRST AMENDMENT TO DEVELOPMENT CONTRACT Page 32 of 229 FIRST AMENDMENT TO DEVELOPMENT CONTRACT THIS FIRST AMENDMENT TO DEVELOPMENT CONTRACT (the “Amendment”), dated as of , 2023, is made between THE CITY OF FARMINGTON, a Minnesota municipal corporation (“City”) and DENMARK TRAIL WORKFORCE HOUSING LIMITED PARTNERSHIP, a Minnesota Limited Partnership (“Developer”). RECITALS A. City and Developer previously entered into that certain Development Contract dated January 17, 2023 (the “Development Contract”) providing for approval of the plat for Denmark Housing Addition and development of certain real property located in the City of Farmington, Minnesota as legally described in Exhibit “A” to the Development Contract (the “Property”). B. City and Developer desire to amend the terms and conditions of the Development Contract subject to and on the terms and conditions set forth in this amendment. NOW, THEREFORE, in consideration of the foregoing premises and the mutual agreements and covenants of the parties set forth herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the City and the Developer hereby agree as follows: 1. Definitions. Unless otherwise expressly defined herein, all capitalized terms shall have the meanings given such terms in the Development Contract. 2. Streets. In addition to the planned emergency access, a temporary access will be provided towards the southern end of the development connecting to Denmark Avenue. This temporary access must be constructed to City road standards. Additionally, the temporary access must be removed when the adjacent site to the south is developed, and a shared access is constructed and functional as part of that development. A public street and utility easement will be required from the adjoining property to the south once the shared access is constructed. 3. Full Force and Effect; Conflict. Except as expressly amended or modified herein, all other terms and provisions of the Development Contract remain unmodified and in full force and effect. To the extent there is any conflict or inconsistency between this Amendment and the Development Contract, with respect to the matters addressed herein, the terms and provisions of this Amendment shall control. 4. Prior Agreements. This Amendment and the Development Contract constitutes the entire agreement between the parties with respect to the matters contained therein and supersedes any and all prior understandings and agreements between the parties, whether oral or written, with respect thereto. Page 33 of 229 5. Counterparts. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 6. Applicable Law. This Amendment shall be construed and enforced in accordance with the internal laws of the State of Minnesota. [Balance of page intentionally left blank] Page 34 of 229 IN WITNESS WHEREOF, the parties herein have caused this First Amendment to Development Contract to be executed by their authorized signatories as of the date set forth in the first paragraph. DENMARK TRAIL WORKFORCE LIMITED PARTNERSHIP By: Name: Tony Schertler Title: Partner CITY OF FARMINGTON By: Name: Joshua Hoyt Title: Mayor By: Name: Lynn Gorski Title: City Administrator STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of December, 2023, by Joshua Hoyt, the Mayor and Lynn Gorski, the City Administrator, of the City of Farmington, a Minnesota municipal corporation, on behalf of said municipal corporation. Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of December, 2023, by Tony Schertler, Partner of Denmark Trail Workforce Limited Partnership a Minnesota Limited Partnership, on behalf of said Limited Partnership. Notary Public Page 35 of 229 Exhibit A Legal Description That part of the West half of the Northwest Quarter (W ½ of NW ¼) in Section 6, Township 113, Range 19, Dakota County, Minnesota, lying Northerly of the Northerly right-of-way of Chicago, Milwaukee, St. Paul and Pacific Railroad, Except the two parcels described as follows: Parcel A: The East 597.97 feet of the West half of the Northwest Quarter (W ½ of NW ¼) in Section 6, Township 113, Range 19, Dakota County, Minnesota, lying Northerly of the Northerly right-of- way of Chicago, Milwaukee, St. Paul and Pacific Railroad. Parcel B: The North 1338.34 feet of the West half of the Northwest Quarter (W ½ of NW ¼) in Section 6, Township 113, Range 19, Dakota County, Minnesota, lying West of the East 597.97 feet thereof. Page 36 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Tony Wippler, Planning Manager Department: Community Development Subject: Resolution Granting a Second Time Extension for Recording of Final Plat - Denmark Housing Addition - Community Development Meeting: Regular Council - Dec 18 2023 INTRODUCTION: The developer of the Denmark Housing Addition (Dakota County CDA) is requesting an extension to the timeframe for recording of the approved final plat. DISCUSSION: The developer, Dakota County Community Development Agency [CDA], received approval from the City Council for the Denmark Housing Addition final plat on June 20, 2022. Section 11-2-3(E) of the City Code requires that, upon approval of the final plat by the City Council, the developer shall record it with the Dakota County Recorder within 6 months of the approval unless a time extension is requested by the developer and submitted and approved by the City Council. The Council approved an extension on December 5, 2022 to extend that date until June 30, 2023. That extension has since lapsed and the developer is requesting a second extension (see attached request). The requested second extension goes to June 30, 2024. BUDGET IMPACT: Not applicable ACTION REQUESTED: Adopt Resolution R79-23 Allowing for a Second Extension for the Recording of the Final Plat Denmark Housing Addition to June 30, 2024. ATTACHMENTS: Timeframe extension request 121123 R79-23 Second Extension for Recording of Final Plat, Denmark Housing Addition Page 37 of 229 1 Tony Wippler From:Kari Gill <kgill@dakotacda.org> Sent:Monday, December 11, 2023 9:51 AM To:Tony Wippler Subject:[EXTERNAL]Denmark Housing Addition Plat Filing Extension Request Hi Tony, The Dakota County CDA would like to request an extension for filing the Denmark Housing Addi on Plat un l June 30, 2024. We have been working with the City regarding the access issues and need the addi onal me for recording the plat. Please contact me with any ques ons or if you need any addi onal informa on. Thank you for your assistance. Kari Gill Deputy Execu ve Director 1228 Town Centre Drive | Eagan, MN 55123 P: 651-675-4477 kgill@dakotacda.org www.dakotacda.org This communica on may contain confiden al and/or otherwise proprietary material and is for use only by the intended recipient(s). If you received this email in error, please contact the sender and delete the e-mail and its a:achments from all computers. CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. PLEASE REPORT SUSPICIOUS EMAILS TO: ITSUPPORT@FARMINGTONMN.GOV Page 38 of 229 CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA RESOLUTION R79-23 A RESOLUTION ALLOWING FOR A SECOND EXTENSION FOR THE RECORDING OF THE FINAL PLAT DENMARK HOUSING ADDITION WHEREAS, pursuant to Resolution R48-22, the City Council approved the Final Plat of Denmark Housing Addition subject to the following conditions: 1. The satisfaction of all engineering comments related to the construction plans for grading and utilities. 2. A Development Contract between the applicant and the City of Farmington shall be executed and security fees and costs shall be paid. Submission of all other documents required under the Development Contract shall be required. WHEREAS, the developer of Denmark Housing Addition requested and was granted an extension on December 5, 2022 for filing of the final plat for the aforementioned subdivision to June 30, 2023; and WHEREAS, the developer is requesting that the City Council approve a second extension for the filing of a final plat at Dakota County. NOW, THEREFORE, BE IT RESOLVED, that the Farmington Mayor and City Council hereby approve the requested second extension for filing of the final plat for the aforementioned subdivision to June 30, 2024. Adopted by the City Council of the City of Farmington, Minnesota, this 1 8th day of December 2023. ATTEST: ____________________________ ______________________________ Joshua Hoyt, Mayor Shirley R Buecksler, City Clerk Page 39 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Kim Sommerland, Finance Director Department: Finance Subject: Liability Coverage Waiver Form Meeting: Regular Council - Dec 18 2023 INTRODUCTION: The attached Liability Coverage - Waiver form requires City Council approval DISCUSSION: Members who obtain liability coverage through the League of Minnesota Cities Insurance Trust (LMCIT) must decide whether to waive the statutory tort liability limits to the extent of the coverage purchased. BUDGET IMPACT: Not applicable ACTION REQUESTED: Approve the Liability Coverage Waiver form as presented. ATTACHMENTS: Liability-Coverage-Waiver-Form signed Page 40 of 229 League of Minnesota Cities 3/2/2023 Liability Coverage Waiver Form Page 1 LIABILITY COVERAGE WAIVER FORM Members who obtain liability coverage from LMCIT must decide whether to waive the statutory tort liability limits to the extent of the coverage purchased. The decision to waive or not waive the statutory tort limits must be made annually by the member’s governing body, in consultation with its attorney if necessary. The decision has the following effects: x If the member does not waive the statutory tort limits, an individual claimant could recover no more than $500,000 on any claim to which the statutory tort limits apply. The total all claimants could recover for a single occurrence to which the statutory tort limits apply would be limited to $1,500,000. These statutory tort limits would apply regardless of whether the member purchases the optional LMCIT excess liability coverage. x If the member waives the statutory tort limits and does not purchase excess liability coverage, a single claimant could recover up to $2,000,000 for a single occurrence (under the waive option, the tort cap liability limits are only waived to the extent of the member’s liability coverage limits, and the LMCIT per occurrence limit is $2,000,000). The total all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to $2,000,000, regardless of the number of claimants. x If the member waives the statutory tort limits and purchases excess liability coverage, a single claimant could potentially recover an amount up to the limit of the coverage purchased. The total all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage purchased, regardless of the number of claimants. Claims to which the statutory municipal tort limits do not apply are not affected by this decision. LMCIT Member Name: __________________________________________________________________________ ______________________________________________________________________________________________ Check one: ܆ The member DOES NOT WAIVE the monetary limits on municipal tort liability established by Minn. Stat. § 466.04. ܆ The member WAIVES the monetary limits on municipal tort liability established by Minn. Stat. § 466.04, to the extent of the limits of the liability coverage obtained from LMCIT. Date of member’s governing body meeting:___________________________________________________________ Signature: _____________________________________________________________________________________ Position: _______________________________________________________________________________________ Members who obtain liability coverage through the League of Minnesota Cities Insurance Trust (LMCIT) must complete and return this form to LMCIT before their effective date of coverage. Email completed form to your city’s underwriter, to pstech@lmc.org, or fax to 651.281.1298. mber s governing body meet __________________________________ City of Farmington ✔ December 18, 2023 Finance Director Page 41 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Kim Sommerland, Finance Director Department: Finance Subject: Payment of Claims Meeting: Regular Council - Dec 18 2023 INTRODUCTION: Attached is the list of check and electronic payments for the period of 11/29/2023-12/11/2023 for approval. DISCUSSION: Not applicable BUDGET IMPACT: Not applicable ACTION REQUESTED: Approve payment of claims. ATTACHMENTS: City Claims Report 12 18 2023 Page 42 of 229 CLAIMS FOR APPROVAL 11/29/2023 ‐ 12/11/2023: CHECK PAYMENTS 530,603.96$           ELECTRONIC PAYMENTS 1,204,401.33$        TOTAL 1,735,005.29$        The City Council receives a detail list of claims paid that is available to  the public upon request.  CITY OF FARMINGTON SUMMARY PAYMENT OF CLAIMS December 18, 2023 Page 43 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Kim Sommerland, Finance Director Department: Finance Subject: Financial Review for the Quarter Ending September 30, 2023 Meeting: Regular Council - Dec 18 2023 INTRODUCTION: Staff reviews the financial performance of the General Fund and several other funds with the City Council quarterly . The statements for the third quarter are provided for your review. DISCUSSION: A summary of the financial reports is provided below. General Fund For 2023, budgeted General Fund revenues, including transfers, total $16,884,783. At the end of the third quarter of the year, the General Fund revenues total $10,190,286, or 60.35%, of total budgeted revenues. Through the third quarter, the overall General Fund expenditures, including transfers, total $12,322,196 which is 72.98% of the total budget. EDA Including transfers into the fund, revenues for the EDA exceed expenditures by $10,081. Park Improvement Fund Park development and dedication fees total $177,311, accounting for 82.79% of year-to-date revenues. Expenditures for the fund total $178,281 through the third quarter. Arena Revenues and expenditures for the arena exceed 2022 third quarter totals by $32,428 and 77,632, respectively. Liquor Operations The City has two financial benchmarks for its liquor operations. The first is a 25 percent gross profit margin. For the third quarter, both of the stores individually were within one percent of the target. The second standard is a 6 percent profit as a percent of sales. This is evaluated on a combined basis. At the end of the third quarter, the stores exceeded the standard and reported a 9.18% of profit as a percent of sales. Sales through the third quarter have increased by $335,810 or 7.19% Page 44 of 229 over 2022. Sewer Revenues for the Sewer Fund reflect an increase of $221,605 as compared to 2022. Expenses have also increased from last year by $203,211. Solid Waste The City ceased its solid waste operation as of December 31, 2021, and fund activity is thereby limited. The cash balance of the fund totals $1,740,901 at the end of the third quarter. Storm Water Revenues for the fund are $50,566 more in comparison to the same period last year. Expenses for the Storm Water operation reflect a decrease of $77,689 from the prior year quarter end, primarily as a result of storm water maintenance program costs incurred in the prior year. Water In comparison to 2022 third quarter amounts, revenues for the Water Fund have increased $274,493. Expenses for the operation have increased slightly by a total of $58,504. Street Light Street Light Fund revenues have increased while the expenses have decreased in comparison to 2022. At the end of the third quarter, revenues exceeded expenses by $12,385, vs. $1,594 in the prior year. NOTE: For all of the City’s utility funds, the billing cycle (revenue) lags the recording of expenses. For example, the City bills every three months. The January billing includes November and December of the previous year, as well as January of the current year. So, two-thirds of that billing cycle is attributable to the prior year and is recorded as such in the financial statements. This means that at the end of the year, the financial statements will remain open so that the revenues for the current year can be captured, even though they will not be billed out until January and February of the following year. BUDGET IMPACT: The budget impacts have been noted above as appropriate. ACTION REQUESTED: Review and acknowledge the financial reports for the third quarter September 30, 2023. ATTACHMENTS: Q3 Financial Reports CC Page 45 of 229 GENERAL FUND STATEMENT OF REVENUES - BUDGET TO ACTUAL REVENUE SOURCE THIS 2023 YEAR 2022 YEAR DIFFERENCE PERCENT BUDGET MONTH TO DATE TO DATE UNDER(OVER)COLLECTED Taxes 13,087,930$ -$ 6,897,472$ 6,295,438$ 6,190,458$ 52.70% Business Licenses 43,350 1,124 37,739 37,914 5,611 87.06% Building Permits 872,120 189,574 636,009 590,802 236,111 72.93% Fines and Forfeits 55,000 5,291 40,610 39,825 14,390 73.84% Intergovernmental: Local Government Aid - - - 52,794 - 0.00% Law Officers Training Reimbursement 25,000 22,224 22,224 25,370 2,776 0.00% MSA Maintenance 185,400 - 257,391 333,718 (71,991) 138.83% State Aid Police/Fire 400,000 476,251 480,251 439,056 (80,251) 120.06% Grants-Federal 3,100 - 3,720 13,316 (620) 120.00% Other Grants 9,820 (5,017) 50,052 33,156 (40,232) 509.69% Charges for Services: General government 11,650 802 5,699 15,253 5,951 48.92% Public Safety 346,169 48,984 154,594 122,615 191,575 44.66% Public Works 14,000 4,500 90,014 82,359 (76,014) 642.96% Park and Recreation 89,100 5,354 96,830 76,471 (7,730) 108.68% Miscellaneous Revenues Investment Income 51,000 265 124,705 43,418 (73,705) 244.52% Rental Income 36,710 2,559 38,719 33,983 (2,009) 105.47% Franchise Fees 145,000 - 94,473 102,454 50,527 65.15% Other 11,700 3,421 36,483 29,420 (24,783) 311.82% Transfers 1,497,734 124,811 1,123,301 1,070,894 374,433 75.00% Total 16,884,783$ 880,143$ 10,190,286$ 9,438,256$ 6,694,497$ 60.35% Cash Balance as of September 30, 2023 $8,131,969 CITY OF FARMINGTON MONTHLY FINANCIAL REPORT September 30, 2023 Page 46 of 229 CITY OF FARMINGTON MONTHLY FINANCIAL REPORT GENERAL FUND STATEMENT OF EXPENDITURES - BUDGET TO ACTUAL UNEXPENDED PERCENT DEPARTMENT/DIVISION BUDGET YEAR TO DATE BALANCE EXPENDED ADMINISTRATION Legislative 110,262$ 92,222$ 18,040$ 83.64% Administration 528,826 342,372 186,454 64.74% Elections 10,000 2,802 7,198 28.02% Communications 134,785 79,706 55,079 59.14% City Hall 375,650 316,129 59,521 84.16% Total 1,159,523$ 833,231$ 326,292 71.86% HUMAN RESOURCES Human Resources 401,235$ 368,221$ 33,014$ 91.77% Total 401,235$ 368,221$ 33,014 91.77% DAKOTA BROADBAND Dakota Broadband 45,500$ 4,664$ 40,836$ 10.25% Total 45,500$ 4,664$ 40,836$ 10.25% FINANCE AND RISK MANAGEMENT Finance 658,857$ 498,577$ 160,280$ 75.67% Risk Management 189,550 156,488 33,062 82.56% Total 848,407$ 655,065$ 193,342$ 77.21% POLICE Police Administration 1,382,034$ 1,050,417$ 331,617$ 76.01% Patrol Services 3,228,428 2,362,234 866,194 73.17% Investigations 1,032,707 669,927 362,780 64.87% Emergency Management 21,400 13,923 7,477 65.06% Total 5,664,569$ 4,096,501$ 1,568,068$ 72.32% FIRE Fire 1,742,006$ 1,258,520$ 483,486$ 72.25% Total 1,742,006$ 1,258,520$ 483,486$ 72.25% COMMUNITY DEVELOPMENT Planning 554,687$ 366,309$ 188,378$ 66.04% Building Inspections 685,022 535,240 149,782 78.13% Total 1,239,709$ 901,549$ 338,160$ 72.72% ENGINEERING Engineering 672,459$ 448,496$ 223,963$ 66.69% Natural Resources 142,284 104,690 37,594 73.58% Total 814,743$ 553,186$ 261,557$ 67.90% MUNICIPAL SERVICES Streets 1,436,409$ 991,255$ 445,154$ 69.01% Snow Removal 280,165 188,084 92,081 67.13% Total 1,716,574$ 1,179,339$ 537,235$ 68.70% RECREATION SERVICES Park Maintenance 979,476$ 788,221$ 191,255$ 80.47% Rambling River Center 204,199 151,583 52,616 74.23% Park & Recreation Admin 210,945 162,130 48,815 76.86% Recreation Programs 215,875 138,469 77,406 64.14% Total 1,610,495$ 1,240,403$ 370,092$ 77.02% Transfers Out 1,642,022$ 1,231,517$ 410,505$ 75.00% TOTAL GENERAL FUND 16,884,783$ 12,322,196$ 4,562,587$ 72.98% September 30, 2023 Page 47 of 229 CITY OF FARMINGTON MONTHLY FINANCIAL REPORT September 30, 2023 ECONOMIC DEVELOPMENT AGENCY COMPARATIVE STATEMENT OF REVENUES AND EXPENSES BUDGET THIS YEAR T0 YEAR T0 PERCENT 2022 2023 MONTH DATE 2023 DATE 2022 COLL/EXP ACTUAL REVENUES Interest (Charge)1,600 663 4,845 2,256 302.81%(6,627) TOTAL REVENUES 1,600 663 4,845 2,256 302.81%(6,627) EXPENDITURES Other Services & Charges 81,510 4,087 69,233 35,755 84.94%40,600 TOTAL EXPENDITURES 81,510 4,087 69,233 35,755 84.94%40,600 TRANSFERS IN/(OUT)50,000 4,167 74,469 81,867 94,367 EXCESS (DEFICIENCY)(29,910)$ 743$ 10,081$ 48,368$ 47,140$ Cash Balance as of September 30, 2023 $265,409. Page 48 of 229 CITY OF FARMINGTON MONTHLY FINANCIAL REPORT September 30, 2023 PARK IMPROVEMENT FUND COMPARATIVE STATEMENT OF REVENUES AND EXPENSES BUDGET THIS YEAR T0 YEAR T0 PERCENT 2022 2023 MONTH DATE 2023 DATE 2022 COLL/EXP ACTUAL REVENUES Park Dedication Fees 75,000$ -$ 126,510$ 210,000$ 168.68%210,000$ Park Development Fees - - 50,801 96,880 0.00%96,880 Rental Income 8,560 - 8,560 7,403 100.00%8,403 Miscellaneous Revenue - - 1,175 - 0.00%- Interest (Charge) 4,000 3,814 27,118 10,860 677.95%(36,375) TOTAL REVENUES 87,560 3,814 214,164 325,143 244.59%278,908 EXPENDITURES Other Services & Charges 352,000 9,059 57,631 19,591 16.37%19,593 Capital Outlay 10,250 103,749 120,650 - 0.00%10,250 TOTAL EXPENDITURES 362,250 112,808 178,281 19,591 49.21%29,843 TRANSFERS IN/(OUT) 100,000 8,333 75,000 56,250 75,000 EXCESS (DEFICIENCY) (174,690)$ (100,661)$ 110,883$ 361,802$ 324,065$ Cash Balance as of September 30, 2023 $1,430,340. Page 49 of 229 CITY OF FARMINGTON MONTHLY FINANCIAL REPORT September 30, 2023 ICE ARENA COMPARATIVE STATEMENT OF REVENUES AND EXPENSES BUDGET THIS YEAR T0 YEAR T0 PERCENT 2022 2023 MONTH DATE 2023 DATE 2022 COLL/EXP ACTUAL REVENUES User Fees 426,000$ 27,650$ 236,229$ 215,135$ 55.45% 384,814$ Interest 400 44 814 409 203.50% 386 Other Revenue 8,500 - 17,289 6,360 203.40% 11,360 Total Revenues 434,900 27,694 254,332 221,904 58.48% 396,560 Cost of Sales - - (252) - 0.00% (1,198) TOTAL REVENUES 434,900 27,694 254,080 221,904 58.42% 395,362 EXPENDITURES Personal Services 298,881 17,424 196,235 180,660 65.66% 267,957 Other Services & Charges 153,226 18,937 165,721 118,332 108.15% 161,655 Capital Outlay 1,000 250 14,668 - 1466.80% - TOTAL EXPENDITURES 453,107 36,611 376,624 298,992 83.12% 429,612 TRANSFERS IN/(OUT) - 1,667 85,243 - 14,500 EXCESS (DEFICIENCY) (18,207)$ (7,250)$ (37,301)$ (77,088) (19,750)$ Cash Balance as of September 30, 2023 $17,653. Page 50 of 229 CITY OF FARMINGTON September 30, 2023 MUNICIPAL LIQUOR OPERATIONS DOWNTOWN PILOT KNOB TOTAL YEAR TO DATE YEAR TO DATE YEAR TO DATE SALES 2023 2,333,406$ 2,670,615$ 5,004,021$ SALES 2022 2,121,954 2,546,257 4,668,211 $ Difference 211,452 124,358 335,810 % Difference 9.96%4.88%7.19% COST OF GOODS SOLD 1,766,718 1,991,905 3,758,623 GROSS PROFIT 566,688 678,710 1,245,398 % OF GROSS PROFIT TO SALES 24.29%25.41%24.89% OPERATING EXPENSES: Personnel Services & Supplies 263,506 214,763 478,269 Other Services & Charges 152,574 138,673 291,247 Depreciation 15,750 938 16,688 TOTAL 431,830 354,374 786,204 Operating Income 134,858 324,337 459,195 Other Income (Loss) 20,555 17,453 38,008 INCOME BEFORE TRANSFERS 155,413 341,790 497,203 Profit as a % of Sales 9.18% Operating Transfers In/(Out) (73,172) (73,172) (146,344) NET INCOME 82,241$ 268,618$ 350,859$ Cash Balance as of September 30, 2023: Operating Cash (Pots 1 & 2) 790,493$ Community Projects (Pot 3) 389,328 Capital Improvements (Pot 4) 826,231 Petty Cash 3,502 2,009,554$ MONTHLY FINANCIAL REPORT Page 51 of 229 CITY OF FARMINGTON MONTHLY FINANCIAL REPORT September 30, 2023 SEWER FUND COMPARATIVE STATEMENT OF REVENUES AND EXPENSES BUDGET THIS YEAR T0 YEAR T0 PERCENT 2022 2023 MONTH DATE 2023 DATE 2022 COLL/EXP ACTUAL REVENUES Charges for Service* 2,674,762$ 400,596$ 2,034,848 1,813,243$ 76.08%2,607,594$ Interest 14,200 6,384 45,056 20,117 317.30%(67,170) Other Revenue - 1 48 - 0.00%3,608 TOTAL REVENUES 2,688,962 406,981 2,079,952 1,833,360 77.35%2,544,032 EXPENSES Personnel Services 13,038 - 403 847 3.09%1,266 Other Services & Charges 717,171 16,253 146,766 118,582 20.46%156,912 MCES Charges ** 1,994,927 166,244 1,496,196 1,341,767 75.00%1,789,024 Depreciation 690,000 57,500 517,500 496,458 75.00%659,086 TOTAL EXPENSES 3,415,136 239,997 2,160,865 1,957,654 63.27%2,606,288 TRANSFERS IN/(OUT) (999,055) (29,588) (266,291) (500,103) (585,838) EXCESS (DEFICIENCY) (1,725,229)$ 137,396$ (347,204)$ (624,397)$ (648,094)$ Cash Balance as of September 30, 2023 $2,561,295. FOOTNOTES: * Charges for Services are not collected on an even flow basis during the year due to the accrual of revenues year end. Wastewater sales for October, November, and December are not billed until the ** MCES wastewater charges are made on an annual and monthly basis. The budgeted amount is anticipated as the total expenditure in 2023. subsequent year, but are accrued at year end. Page 52 of 229 CITY OF FARMINGTON MONTHLY FINANCIAL REPORT September 30, 2023 SOLID WASTE FUND COMPARATIVE STATEMENT OF REVENUES AND EXPENSES BUDGET THIS YEAR T0 YEAR T0 PERCENT 2022 2023 MONTH DATE 2023 DATE 2022 COLL/EXP ACTUAL REVENUES Charges for Services* -$ 2,924$ 10,605$ 20,163$ #DIV/0! 21,746$ Intergovernmental - - - 1,027 0.00%22,554 Interest (Charge) 12,000 4,338 33,791 18,610 281.59%(46,858) Other Revenue - - - 485,629 0.00%487,130 TOTAL REVENUES 12,000 7,262 44,396 525,429 369.97%484,572 EXPENSES Personnel Services - - - 66,143 #DIV/0! (238,788) Other Services & Charges 10,000 5,179 67,516 900,434 675.16%924,882 Depreciation - - - - #DIV/0! - TOTAL EXPENSES 10,000 5,179 67,516 966,577 675.16%686,094 TRANSFERS IN/(OUT) (150,000) (12,500) (112,500) (116,999) (155,999) EXCESS (DEFICIENCY) (148,000)$ (10,417)$ (135,620)$ (558,147)$ (357,521)$ Cash Balance as of September 30, 2023 $1,740,901. FOOTNOTES: * Charges for Services are not collected on an even flow basis during the year due to the accrual of revenues year end. Solid Waste sales for October, November, and December are not billed until the subsequent year, but are accrued at year end. Page 53 of 229 CITY OF FARMINGTON MONTHLY FINANCIAL REPORT September 30, 2023 STORM WATER FUND COMPARATIVE STATEMENT OF REVENUES AND EXPENSES BUDGET THIS YEAR T0 YEAR T0 PERCENT 2022 2023 MONTH DATE 2023 DATE 2022 COLL/EXP ACTUAL REVENUES Charges for Services* 1,323,263$ 204,068$ 914,739$ 864,173$ 69.13%1,227,091$ Interest (Charge) 10,100 6,721 47,348 19,232 0.00%(58,734) TOTAL REVENUES 1,333,363 210,789 962,087 883,405 72.15%1,168,357 EXPENSES Personnel Services 9,227 - 140 781 1.52%780 Other Services & Charges 160,689 13,779 127,352 216,752 79.25%255,507 Depreciation 475,000 39,583 356,250 343,898 75.00%462,938 TOTAL EXPENSES 644,916 53,362 483,742 561,431 75.01%719,225 TRANSFERS IN/(OUT) (901,654) (35,971) (323,741) (922,289) (1,026,052) EXCESS (DEFICIENCY) (213,207)$ 121,456$ 154,604$ (600,315)$ (576,920)$ Cash Balance as of September 30, 2023 $2,696,951. FOOTNOTES: * Charges for Services are not collected on an even flow basis during the year due to the accrual of revenues year end. Storm Water sales for October, November, and December are not billed until the subsequent year, but are accrued at year end. Page 54 of 229 CITY OF FARMINGTON MONTHLY FINANCIAL REPORT September 30, 2023 WATER FUND COMPARATIVE STATEMENT OF REVENUES AND EXPENSES BUDGET THIS YEAR T0 YEAR T0 PERCENT 2022 2023 MONTH DATE 2023 DATE 2022 COLL/EXP ACTUAL REVENUES Charges for Service* 2,326,548$ 528,730$ 1,705,639$ 1,535,117$ 73.31%2,238,210$ Interest (Charge) 50,200 28,981 212,105 95,383 422.52%(298,496) Rental Income 275,000 13,170 247,916 262,451 90.15%295,012 Other Revenue - - 3,259 1,475 0.00%5,787 TOTAL REVENUES 2,651,748 570,881 2,168,919 1,894,426 81.79%2,240,513 EXPENSES Personnel Services 20,536 138 7,605 5,235 37.03%8,540 Other Services & Charges 745,858 72,203 674,112 623,064 90.38%797,369 Debt Service 23,175 - 23,175 26,425 0.00%15,164 Depreciation 1,050,000 87,500 787,500 779,164 75.00%993,281 TOTAL EXPENSES 1,839,569 159,841 1,492,392 1,433,888 81.13%1,814,354 TRANSFERS IN/(OUT) (1,620,899) (38,992) (350,924) (1,253,227) (1,365,703) EXCESS (DEFICIENCY) (808,720)$ 372,048$ 325,603$ (792,689)$ (939,544)$ Cash Balance as of September 30, 2023 Operating 9,165,915$ Water Treatment Plant 2,461,488 11,627,403$ FOOTNOTES: * Charges for services are not collected on an even flow basis during the year due to the accrual of revenues at year end. Water sales for October, November, and December may not be billed until the subsequent year, but are accrued at year end. Page 55 of 229 CITY OF FARMINGTON MONTHLY FINANCIAL REPORT September 30, 2023 STREET LIGHT FUND COMPARATIVE STATEMENT OF REVENUES AND EXPENSES BUDGET THIS YEAR T0 YEAR T0 PERCENT 2022 2023 MONTH DATE 2023 DATE 2022 COLL/EXP ACTUAL REVENUES Charges for Services* 227,000$ 23,140$ 159,690$ 157,001$ 70.35%233,899$ Interest (Charge) 1,400 963 6,678 3,042 477.00%(9,529) Other Revenue - - - - 0.00%2,218 TOTAL REVENUES 228,400 24,103 166,368 160,043 72.84%226,588 EXPENSES Other Services & Charges 217,000 17,308 153,983 158,449 70.96%210,174 TOTAL EXPENSES 217,000 17,308 153,983 158,449 70.96%210,174 EXCESS (DEFICIENCY) 11,400$ 6,795$ 12,385$ 1,594$ 16,414$ Cash Balance as of September 30, 2023 $385,656. FOOTNOTES: * Charges for services are not collected on an even flow basis during the year due to the accrual of revenues at year end. Street Light sales for October, November, and December may not be billed until the subsequent year, but are accrued at year end. Page 56 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Kim Sommerland, Finance Director Department: Finance Subject: Professional Services Agreement with Ehlers to provide Long-Term Financial Planning Services Meeting: Regular Council - Dec 18 2023 INTRODUCTION: Council is asked to approve the Professional Services Agreement with Ehlers to provide Long-Term Financial Planning Services DISCUSSION: The long-term financial plan was identified within the City’s strategic plan. A long-term plan provides us with the opportunity to establish a clear and cohesive vision for the future of Farmington. Planning for the long term allows the City to allocate resources more efficiently. By identifying priorities and potential challenges in advance, we can make informed decisions about resource distribution, ensuring that our investments yield maximum returns for the community. A well- developed long-term plan promotes financial stability by forecasting future needs and identifying revenue streams. The process will include initial discussions with staff to gather the necessary information to build a baseline plan based on identified capital needs. Once the baseline plan has been completed, a second meeting will be held with staff to incorporate additional feedback for up to two scenarios to be built into the plan. Updates will be made to the plan and the plan identifying financial impacts will be presented to Council for further discussion and input. After refining the plan with direction from Council and feedback from Staff, a final plan will be presented to Council at a second meeting. It is anticipated that the process will take approximately four months to complete. In conclusion, the adoption of a long-term plan is not merely a strategic choice; it is a commitment to and foresight embracing By Farmington. and well-being development sustainable the of collaborative planning, we can shape a future that reflects the aspirations and needs of our community. BUDGET IMPACT: Funding will be covered within the 2024 budget. ACTION REQUESTED: Approve the Professional Services Agreement with Ehlers. Page 57 of 229 ATTACHMENTS: DOCS-#229169-v1-Ehlers_Agreement_for_Professional_Services_-_FMP_2024 Page 58 of 229  229169v1 AGREEMENTFORPROFESSIONALSERVICES  THISAGREEMENTFORPROFESSIONALSERVICES(“Agreement”)ismadeandenteredintothis 18thdayofDecember,2023byandbetweentheCityofFarmington,aMinnesotamunicipalcorporation (“TheCity”)andEhlersandAssociates,Inc.,aMinnesotacorporation(“Contractor”). WHEREAS,theCitydesiresthattheContractor,asanindependentcontractor,performcertain servicesasamunicipaladvisor,inaccordancewiththeprovisionofthisAgreement,andmorefully describedherein;and WHEREAS,Contractordesirestoperformsuchservicespursuanttothetermsandconditions providedforintheAgreement;and WHEREAS,thepartiesheretodesiretosetforthcertainunderstandingsregardingtheservicesin writing. NOW,THEREFORE,inconsiderationofthemutualcovenantsandagreementscontainedherein, thepartiesagreeasfollows: SECTION1–SCOPEOFSERVICES TheCityagreestoretainContractortoprovidetheservicessetforthintheScopeofWork(“SOW”), attachedheretoandincorporatedhereinbyreferenceasExhibitA(“Services”).Contractorshallprovide theServicesinaccordancewiththetermsandsubjecttotheconditionssetforthinthisAgreement. ContractorwarrantsandrepresentsthatithastherequisiteauthoritytoperformtheServicesin compliancewiththeprovisionsofthisAgreement. SECTION2–TERM ThetermofthisAgreement(the“Term”)shallbeginasofthedateofitsexecutionbybothparties,as datedaboveandcontinueuntiltheAgreementisterminatedpursuanttoSection14ofthisAgreement, provided,however,thattotheextentthattheTermexceedsthe2024fiscalyear,theobligations describedhereinshallbesubjecttoannualappropriationbytheCity,atitssolediscretion. SECTION3–PROJECTMANAGEMENT TheCityrequirestheContractortoassignspecificindividualsasprincipalprojectmembersandtoassure thatthemajorworkandcoordinationwithrespecttotheServiceswillremaintheresponsibilityofthese individualsortheirreplacementsduringthetermoftheAgreement.Removalofanyprincipalproject memberwithoutreplacementbyanotherqualifiedindividual(asdeterminedinthereasonable discretionofContractor)isgroundsforterminationoftheAgreementbytheCity.Initssolediscretion, theCitymayatanytimerequestthataprincipalprojectmembernolongerprovideServicestotheCity. TheCityhasdesignatedthefollowingindividualastheProjectManagerfortheAgreement,andthe individualtowhomallcommunicationspertainingtotheAgreementshallbeaddressed.TheProject Managershallhavetheauthoritytotransmitinstructions,receiveinformation,andinterpretanddefine theCity’spolicyanddecisionspertinenttotheworkcoveredbythisAgreement. Page 59 of 229  229169v1 CityProjectManager: KimSommerland,FinanceDirector 430ThirdSt.Farmington,MN55024 651Ͳ280Ͳ6880 ksommerland@farmingtonmn.gov  TheContractorhasdesignatedthefollowingindividual(s)astheProjectTeamfortheAgreement,and theindividual(s)towhomallcommunicationspertainingtotheAgreementshallbeaddressed.The ProjectTeamshallhavetheauthoritytotransmitinstructions,receiveinformation,andinterpretand defineprojectworkcoveredbythisAgreement. EhlersandAssociates,IncProjectTeam: JasonAarsvold,SeniorMunicipalAdvisor 3060CenterPointeDriveRoseville,MN55113 651Ͳ697Ͳ8512 jaarsvold@ehlersͲinc.com  RebeccaKurtz,SeniorMunicipalAdvisor 3060CenterPointeDriveRoseville,MN55113 651Ͳ697Ͳ8516 rkurtz@ehlersͲinc.com  KyleSawyer,SeniorFiscalConsultant 3060CenterPointeDriveRoseville,MN55113 651Ͳ697Ͳ8539 ksawyer@ehlersͲinc.com  SECTION4–BILLINGS,PAYMENT,ANDINVOICES ThecompensationfortheServiceswillbedetailedintheSOWattachedhereto(the“Compensation”). TheamountssetforthintheSOWshallfullycompensateContractorforallServicesandassociated costs.TheCitywillhonornoclaimforServicesand/orcostsprovidedbytheContractornotspecifically providedforinthisAgreement,theSOW,oranamendmentthereto. Contractorshallsubmitanitemizedinvoicemonthly,orafterServicesarecomplete.Invoiceswillclearly itemizeallcostsand/orServicesprovided.Uponreceiptoftheinvoiceandverificationofthechargesby theProjectManager,theCityshallmakepaymenttoContractor.Paymentshallbemadenotlaterthan fortyͲfive(45)daysfollowinginvoicereceipt.Allpaymentsanddisputesofpaymentsshallbeperformed inaccordancewithMinnesotaregulationsandMinn.Stat.§471.425. SECTION5–CITYRESPONSIBILITY TheCityagreestoprovideContractorwithaccesstoanyinformationfromCitydocuments,staffand othersourcesunderthecontroloftheCityneededbyContractortocompletetheServicesdescribed hereinorassetforthintheSOW.TheCityherebyacknowledgesthatContractordoesnottake Page 60 of 229  229169v1 responsibilityforverifyingtheaccuracyorcompletenessofinformationsuppliedbytheCity’s representatives(“ClientInformation”)andagreesthatifContractorreceivesinaccurate,incompleteor improperlyformattedClientInformation,(a)Contractorwillhavenoliabilityforrelyingonthesame, and(b)anyadditionaltimeandexpenserequiredtocorrecttheClientInformationwillbebilledtoCity asadditionalServices. SECTION6–AMENDMENTORCHANGESTOAGREEMENT 6.1Anyalterations,amendments,deletions,orwaiversoftheprovisionsoftheAgreementshallbe validonlywhenreducedtowritinganddulysigned(i)bythepartiesinthecaseofalterations, amendmentsordeletionstothisAgreementortheSOW;or(ii)bythepartymakingthewaiverinthe caseofwaivers. 6.2Modificationsoradditionalschedulesshallnotbeconstruedtoadverselyaffectvestedrightsor causesofactionswhichhaveaccruedpriortotheeffectivedateofsuchamendment,modifications,or supplement. 6.3Theterm“thisAgreement”asusedhereinshallbedeemedtoincludeanyfutureamendments, modifications,andadditionalschedulesmadeinaccordanceherewith. 6.4NeitherwaiverofanyoftheprovisionsofthisAgreementshallbedeemedtoconstitutea waiverofanyotheroftheprovisionsofthisAgreement,norshallsuchwaiverconstituteacontinuing waiverunlessotherwiseexpresslyprovidedinthisAgreement,norshallthewaiverofanydefaultbe deemedawaiverofanysubsequentdefault. SECTION7–RECORDS,DISSEMINATIONOFINFORMATION 7.1ForpurposesofthisAgreement,thefollowingwordsandphrasesshallhavethemeaningsset forthinthissection,exceptwherethecontextclearlyindicatesthatadifferentmeaningisintended. “WorkProduct”shallmeananyreport,recommendation,paper,presentation,drawing,demonstration, orothermaterials,whetherinwritten,electronic,orotherformatthatresultssolelyfromContractor’s Services. “SupportingDocumentation”shallmeananysurveys,questionnaires,notes,research,papers,analyses, whetherinwritten,electronic,orotherformatandotherevidencewhichresultsolelyfromContractor’s Services,andwhichareusedtoperformtheServicesorproducetheWorkProduct. “BusinessRecords”shallmeananybooks,documents,papers,accountrecordsandotherevidence, whetherwritten,electronic,orotherformat,belongingtoContractorandpertainingtotheServices. 7.2AlldeliverableWorkProductandSupportingDocumentationshallbedeliveredtotheCityand shallbecomethepropertyoftheCityafterfinalpaymentismadetoContractorwithnoright,titleor interestinsaidWorkProductorSupportingDocumentationvestinginContractor,exceptasprovidedin thisSection7.2.Contractorshallretaintherighttoallitssoftware,intellectualpropertyandtemplates thatarenotaprojectspecificdeliverableaswellastoindividualfeaturesoftheWorkProductand SupportingDocumentationwhichContractorwouldreasonablyexpecttobeabletorecreateinwhole, orinpartinotherprojects.  Page 61 of 229  229169v1 7.3 (a)Exceptasotherwiseprovidedbylaw,Contractoragreesnottodiscloseorotherwise disseminatenonͲpublicinformationoftheCityassociatedwithorgeneratedasaresultofthe ServiceswithoutthepriorwrittenconsentoftheCityexceptforthepurposeofproviding Services. (b)IfanycourtorregulatoryorderrequiresContractortodisclosesuchnonͲpublic informationprovidedthatsuchorderordemanddoesnotbyitstermsprohibitsuchnotice, ContractorwillpromptlyprovidenoticetotheCityofsuchorderordemandandcooperatewith theCityinrespondingtoit. (c)TheprovisionsofthisSection7.3willsurviveterminationofthisAgreement. 7.4IntheeventofterminationofthisAgreement,allWorkProductfinishedorunfinished,and SupportingDocumentationpreparedbytheContractorunderthisAgreement,shallbedeliveredtothe CitybyContractoruponpaymentofamountsdueandowingforworkperformedandexpensesincurred onorpriortothedateoftermination,andthereshallbenofurtherobligationoftheCitytoContractor. 7.5TheContractorshallmaintainallBusinessRecordsrelatingtothisAgreementinsuchamanner aswillreadilyconformtothetermsoftheAgreementandMinnesotarecordsretentionstatutesand regulationsandtomakesuchmaterialsavailableatitsofficeasrequiredbylawatallreasonabletimes duringthisAgreementperiodandforsix(6)yearsfromthedateofthefinalpaymentfortheServicesin accordancewithMinnesotastatutes. 7.6Thepartieswillcomplywithallapplicabledatapracticeslaws,includingbutnotlimitedtothe MinnesotaGovernmentDataPracticesAct(MGDPA),Minn.Stat.Ch.13andtheMinnesotaRules implementingtheMGDPA,asamended,aswellasanyapplicablestateorfederallawsondataprivacy andsecurity.Alldatacreated,collected,received,stored,used,maintained,ordisseminatedbythe partiesintheperformanceoftheirrolesandresponsibilitiesaresubjecttotherequirementsofthe MGDPA,theMinnesotaRulesimplementingtheMGDPA,asamended. SECTION8–NOTICES ExceptasotherwisestatedinthisAgreement,anynoticeordemandtobegivenunderthisAgreement shallbedeliveredinpersonordepositedintheUnitedStatesCertifiedMail,ReturnReceiptRequested. Anynoticesorothercommunicationsshallbeaddressedtotheindividualsandaddressescontainedin Section3. SECTION9–EQUALOPPORTUNITY/EMPLOYMENTELIGIBILITY ThisAgreementissubjecttoallapplicablelaws,regulationsandexecutiveordersrelatingtoequal opportunityandnonͲdiscriminationinemploymentandtheContractorrepresentsandwarrantsthatit willnotdiscriminateinitsemploymentpracticesinviolationofanysuchapplicablelaw,regulationor executiveorder. 9.1Contractorshallnotknowinglyemployorcontractwithanoncitizenwhowillperformwork underthepubliccontractforServicescontemplatedinthisAgreementandwillparticipateintheEͲ VerifyProgramorotherprogram,ifany,offeredbytheStateofMinnesotainordertoconfirmthe Page 62 of 229  229169v1 employmenteligibilityofallemployeeswhoarenewlyhiredforemploymenttoperformworkunderthe publiccontractforServicescontemplatedinthisAgreement. 9.2Contractorshallnotknowinglyenterintoacontractwithasubcontractorthatfailstocertifyto Contractorthatthesubcontractorshallnotknowinglyemployorcontractwithanoncitizentoperform theServicescontemplatedinthisAgreement. 9.3ContractorisprohibitedfromusingeithertheEͲVerifyProgramorotherprogram,ifany,offered bytheStateofMinnesotatoundertakepreͲemploymentscreeningofjobapplicantswhilethis Agreementisbeingperformed. 9.4IfContractorobtainsactualknowledgethatasubcontractorperformingtheServicesunderthis Agreementknowinglyemploysorcontractswithanoncitizen,Contractorshallberequiredto: (a)NotifythesubcontractorandtheCitywithinten(10)businessdaysthatContractorhas actualknowledgethatthesubcontractorisemployingorcontractingwithanoncitizen. (b)Terminateitssubcontractwiththesubcontractorifwithinten(10)businessdaysafter receivingthenoticerequiredabovethesubcontractordoesnotstopemployingorcontracting withthenoncitizen;exceptthatContractorshallnotterminateitssubcontractwiththe subcontractorifduringsuchten(10)businessdaysthesubcontractorprovidesinformationto Contractortoestablishthatthesubcontractorhasnotknowinglyemployedorcontractedwith annoncitizen. SECTION10–COMPLIANCEWITHAPPLICABLELAW Contractoragreestocomplyinallmaterialrespectswithallfederal,stateandlocallawsorordinances, andallapplicablerules,regulationsandstandardsestablishedbyanyagencyofsuchgovernmental units,insofarastheyrelatetoContractor’sperformanceoftheprovisionsofthisAgreement.Itshallbe theobligationofContractortoapplyfor,payandobtainanyandallpermitsand/orlicensesrequired. SECTION11–CONFLICTOFINTEREST ForpurposesofthisAgreement,a“ConflictofInterest”occursifContractororoneormoreofits directors,officersoremployeeshaveamaterialfinancialinterestinanentitydoingbusinesswiththe Cityorarerelatedtoasupervisor,managerordirectoroftheCity.TothebestofContractor’s knowledgeenteringintoorperformingthisAgreementdoesnotresultinaconflictofinterestwithany personorentity.Contractoragreesthatshouldanyrealorperceivedconflictofinterestbecomeknown toContractor,itwillimmediatelynotifytheCitysoamitigationoftherealorperceivedconflictof interestcanbemade.Ifnomitigationisavailable,theCityshallhavetherighttoterminatethis Agreement. SECTION12–LIMITEDWARRANTY;LIMITATIONONLIABILITY (a)ContractorwarrantstotheCitythattheServiceswillbeperformedinatimely, workmanlike,andprofessionalmannerinaccordancewithgenerallyrecognizedindustry standardsforsimilarservices.CONTRACTOR(i)MAKESNOWARRANTIESEXCEPTFORTHATSET OUTABOVEAND(ii)DISCLAIMSALLOTHERWARRANTIES,WHETHEREXPRESSORIMPLIED, INCLUDINGBUTNOTLIMITEDTOIMPLIEDWARRANTIESOFNONͲINFRINGEMENT, Page 63 of 229  229169v1 MERCHANTABILITYANDFITNESSFORAPARTICULARPURPOSE.Contractorshallwithinthirty (30)daysaftertheeffectivedateofsuchtermination,refundtotheCitythefeespreviouslypaid bytheCityasofthedateofterminationcorrespondingtothedefectiveServices. (b)ContractorandtheCityagreethattheliabilityofContractorinconnectionwiththe ServicesprovidedhereunderwillbelimitedtodirectlossestheCitysuffersasaresultofthe willfulmisconduct,grossnegligenceand/orerrorsoromissionsofContractor.Thepartiesagree thatdirectlossesshallnotincludeanythirdͲpartyclaimsbasedontheCity’suseoftheWork ProductortheSupportingDocumentation.TOTHEEXTENTPERMISSIBLEBYLAW,INNOEVENT SHALLCONTRACTORBELIABLETOANYTHIRDPARTYFORANYCONSEQUENTIAL,INCIDENTAL, INDIRECT,EXEMPLARY,SPECIALORPUNITIVEDAMAGESWHETHERARISINGOUTOFBREACHOF CONTRACT,TORT(INCLUDINGNEGLIGENCE),OROTHERWISEREGARDLESSOFWHETHERSUCH DAMAGEWASFORESEEABLEANDWHETHERORNOTCONTRACTORHASBEENADVISEDOFTHE POSSIBILITYOFSUCHDAMAGESANDNOTWITHSTANDINGTHEFAILUREOFANYAGREEDOR OTHERREMEDYOFITSESSENTIALPURPOSE. SECTION13–ASSIGNMENT;BINDINGEFFECT TheCityandContractoreachbindsitselfanditssuccessorsandassignsofsuchotherparty,withrespect toallcovenantsofthisAgreement;andneithertheCitynorContractorwillassignortransfertheir interestinthisAgreementwithoutthepriorwrittenconsentoftheotherparty.Anyattempted assignmentofthisAgreementinwholeorinpartbyapartywithoutthepriorwrittenconsentofthe otherpartyshallbenullandvoidandofnoeffectwhatsoever. SECTION14–TERMINATION 14.1EitherpartymayterminatethisAgreementatanytimeandforanyreasonuponninety(90)days advancewrittennoticetothenonͲterminatingparty,butsuchterminationshallnotterminateanySOW thenineffect,whichshallcontinuetobegovernedbythetermsofthisAgreementunlessotherwise terminatedpursuanttoSection14.2. 14.2EitherpartymayterminatethisAgreement,andanySOWthenineffect,effectiveuponwritten noticetotheotherparty(the“DefaultingParty”).IftheDefaultingParty:(i)materiallybreachesthis Agreement,andsuchbreachisincapableofcure,orwithrespecttoamaterialbreachcapableofcure, theDefaultingPartydoesnotcuresuchbreachwithintwenty(20)daysafterreceiptofwrittennoticeof suchbreach;(ii)becomesinsolventoradmitsitsinabilitytopayitsdebtsgenerallyastheybecomedue; (iii)becomessubject,voluntarilyorinvoluntarily,toanyproceedingunderanydomesticorforeign bankruptcyorinsolvencylaw,whichisnotfullystayedwithinseven(7)businessdaysorisnotdismissed orvacatedwithinfortyͲfive(45)daysafterfiling;(iv)isdissolvedorliquidatedortakesanycorporate actionforsuchpurpose;(v)makesageneralassignmentforthebenefitofcreditors;or(vi)hasa receiver,trustee,custodianorsimilaragentappointedbyorderofanycourtofcompetentjurisdictionto takechargeoforsellanymaterialportionofitspropertyorbusiness.Notwithstandinganythingtothe contraryinthissection,ContractormayterminatethisAgreement,andanySOWthenineffect,on writtennoticeiftheCityfailstopayanyamountwhenduehereunderandsuchfailurecontinuesfor twenty(20)daysafterContractor’swrittennoticetotheCityofnonpayment. Page 64 of 229  229169v1 14.3UponterminationofthisAgreement,(i)neitherpartyshallhaveanyfurtherobligation hereunderexceptforobligationsaccruingpriortothedateoftermination,and(ii)obligations,promises orcovenantscontainedhereinwhichareexpresslymadetoextendbeyondthetermofthisAgreement, orwhich,bytheirnature,shouldsurviveterminationofthisAgreement. 14.4Intheeventoftermination,theCitywillpayContractorforallServicesreceivedbytheCityupto thereceiptofthenoticeofterminationandthereafteruntilthedateoftermination.Contractorin accordancewithSection7willdeliverallWorkProductandSupportingDocumentationdevelopedupto thetimeofterminationtotheCityuponreceiptoffinalpaymentforServices. SECTION15–GOVERNINGLAW 15.1VenueforallactionsarisingfromthisAgreementshallbeintheDistrictCourtinandforthe countyinwhichtheCityislocated.Thepartiesexpresslyandirrevocablywaiveanyobjectionsorrights whichmayaffectvenueofanysuchaction,including,butnotlimitedtoforumnonͲconveniensor otherwise.AttheCity’srequest,Contractorshallcarryonitsdutiesandobligationsunderthis AgreementduringanylegalproceedingsandtheCityshallcontinuetopayfortheServicesperformed underthisAgreementuntilandunlessthisAgreementisotherwiseterminated. 15.2TheStateofMinnesotalawshallapplytoanydispute,withoutregardtoconflictoflaw principlesthatwouldresultintheapplicationofanylawotherthanthelawoftheStateofMinnesota. SECTION16–INDEPENDENTCONTRACTOR ContractorisanindependentcontractorandnothinginthisAgreementshallconstituteordesignate ContractororanyofitsemployeesoragentsasemployeesoragentsoftheCity.Contractorshallhave fullpowerandauthoritytoselectthemeans,mannerandmethodofperformingitsdutiesunderthis Agreement,withoutdetailedcontrolordirectionfromtheCityandshallberesponsibleforsupervising itsownemployeesand/orsubcontractors.TheCityshallnotbeobligatedtosecure,andshallnot provide,anyinsurancecoverageoremploymentbenefitsofanykindortypetoorforContractororits employees,subcontractors,contractors,agents,orrepresentatives,includingcoverageorbenefits related,butnotlimitedto:local,stateorfederalincomeorothertaxcontributions,insurance contributions(e.g.FICAtaxes),workers’compensation,disability,injury,healthorlifeinsurance, professionalliabilityinsurance,errorsandomissionsinsurance,vacationorsickͲtimebenefits, retirementaccountcontributions,oranyotherformoftaxes,benefitsorinsurance. SECTION17–SUBͲCONTRACTING ContractorissolelyandfullyresponsibletotheCityfortheperformanceofallServicesinaccordance withthetermssetforthinthisAgreement,whetherperformedbyContractororasubcontractor engagedbyContractor,andthefailureofperformancethereofbysuchpersonsorentities,willnot relieve,release,oraffectinanymannerContractor’sduties,liabilities,orobligationsunderthis Agreement. SECTION18–FORCEMAJEURE NeithertheCitynorcontractorshallbeheldresponsibleforperformanceifitsperformanceisprevented byactsoreventsbeyondtheparty’sreasonablecontrol,including,butnotlimitedtosevereweather andstorms,earthquakeorothernaturaloccurrences,terroristact,fire,ware,pandemic,strikesand Page 65 of 229  229169v1 otherlaborunrest,powerfailures,electricalpowersurgesorcurrentfluctuations,civilmilitary emergencies,oractsofthelegislature,judiciary,orexecutive.Theimpactedpartyshallpromptlygive noticetotheotherpartyandshallresumeperformanceofitsobligationsassoonasreasonably practicableaftertheremovalofthecause. Section19–ENTIREAGREEMENT ThisAgreementconstitutestheentireAgreementbetweenthepartiesheretorelatingtotheServices, andsetsforththerights,duties,andobligationsofeachtotheotherasofthisdate.Anyprior agreements,promises,negotiations,orrepresentationsnotexpresslysetforthintheAgreementareof noforceandeffect. SECTION20–INSURANCE 20.1Contractorshallacquireandmaintain,atitssolecostandexpense,duringtheentiretermofthis Agreement,insurancecoverageintheminimumamountssetforthinExhibitB,attachedheretoand incorporatedhereinbyreference. 20.2PriortocommencinganyworkunderthisAgreement,ContractorshallprovidetheCitywitha certificateorcertificatesevidencingthepoliciesrequiredbythisAgreement,aswellastheamountsof coveragefortherespectivetypesofcoverage.Ifthecoveragerequiredexpiresduringthetermofthis Agreement,Contractorshallprovidereplacementcertificate(s)evidencingthecontinuationofthe requiredpolicies. SECTION21–NEGOTIATEDPROVISIONS ThisAgreementshallnotbeconstruedmorestrictlyagainstonepartythanagainsttheothermerelyby virtueofthefactthatitmayhavebeenpreparedbycounselforoneoftheparties,itbeing acknowledgedthateachpartyhascontributedsubstantiallytothepreparationofthisAgreement. SECTION22–SEVERABILITY IfanyportionofthisAgreementisdeclaredbyanycourtofcompetentjurisdictiontobeinvalid,voidor unenforceable,suchdecisionshallnotaffectthevalidityofanyotherportionofthisAgreement,which shallremaininfullforceandeffect,theintentionbeingthatsuchportionareseverable.Inaddition,in lieuofsuchvoidorunenforceableprovision,thereshallautomaticallybeaddedaspartofthis Agreementaprovisionsimilarintermstosuchillegal,invalid,orunenforceableprovisionsothatthe resultingreformedprovisionislegal,valid,andenforceable. Section23–COUNTERPARTEXECUTION ThisAgreementmaybeexecutedinseveralcounterparts,eachofwhichmaybedeemedanoriginal,but allofwhichtogethershallconstituteoneandthesameinstrument.Executedcopieshereofmaybe deliveredbyfacsimileoremailofaPDFdocument,and,uponreceipt,shallbedeemedoriginalsand bindinguponthesignatorieshereto,andshallhavethefullforceandeffectoftheoriginalforall purposes,includingtherulesofevidenceapplicabletocourtproceedings.  Page 66 of 229  229169v1 INWITNESSWHEREOF,thepartieshaveexecutedthisAgreementonthedatefirstabove written.Bythesignatureofitsrepresentativebelow,eachpartyaffirmsthatithastakenallnecessary actiontoauthorizesaidrepresentativetoexecutetheAgreement. CityofFarmington  By:__________________________________ JoshuaHoyt ItsMayor      By:__________________________________ Shirley RBuecksler ItsCityClerk   EHLERS&ASSOCIATES,INC.,aMinnesotacorporation  By__________________________________ Its________________________________              Page 67 of 229 PROPOSAL TO PROVIDE LONG-TERM FINANCIAL PLANNING SERVICES TO: Ehlers 3060 Centre Point Drive Roseville, MN 55113 Municipal Advisor Registration Number: K0165 SEC CIK Number: 0001604197 ehlers-inc.com The City of Farmington, Minnesota OCTOBER 13, 2023 EHLERS’ ADVISORS: Rebecca Kurtz Senior Municipal Advisor rkurtz@ehlers-inc.com 651-697-8516 Jason Aarsvold Senior Municipal Advisor jaarsvold@ehlers-inc.com 651-697-8512 Page 68 of 229 TABLE OF CONTENTS SUBMITTAL LETTER 3 SECTION 1: FIRM OVERVIEW 4 SECTION 2: EXECUTIVE SUMMARY 5 SECTION 3: APPROACH & TIMELINE 6 SECTION 4: PROFESSIONAL EXPERIENCE 9 SECTION 5: PRICING 13 APPENDIX A: LONG-TERM FINANCIAL PLAN: FUNDS INCLUDED 14 Page 69 of 229 Proposal to the City of Farmington, Minnesota Submitted by Ehlers - October 13, 2023 3 October 13, 2023 Lynn Gorski City Administrator City of Farmington 430 3rd Street Farmington, MN 55024 RE: Proposal for Long-Term Financial Planning Services Dear Lynn, On behalf of Ehlers, we are excited to present this proposal to undertake customized long-term financial planning for the City of Farmington. We are deeply appreciative of the relationship we have with the City and hope our past efforts along with this proposal demonstrate our team’s collective commitment and qualifications to deliver a dynamic and practical long-term Financial Plan – and to surpass your expectations for quality and value. We recently completed a Utility Rate Study for the City and believe the knowledge we gained during that project positions us as the firm best suited to complete this new initiative. We would be honored to serve you once again. Ehlers proposes to prepare a customized long-term Financial Plan to ensure the City can fund its operations and maintain the financial health of all funds included in this initiative. We further propose to provide ongoing dialogue and idea-sharing, presentation of customized scenarios related to your unique circumstances, facilitated Council discussions, and a value-oriented fee structure. If you have any questions regarding this proposal, please don’t hesitate to contact us. Thank you for engaging in discussions and considering us for this important work. Respectfully submitted, SUBMITTAL LETTER Rebecca Kurtz Senior Municipal Advisor rkurtz@ehlers-inc.com 651-697-8516 Jason Aarsvold Senior Municipal Advisor jaarsvold@ehlers-inc.com 651-697-8512 Page 70 of 229 Proposal to the City of Farmington, Minnesota Submitted by Ehlers - October 13, 2023 4 Firm Overview BUILDING COMMUNITIES. IT’S WHAT WE DO. Ehlers helps public sector clients build outstanding places to live, work, learn and play by delivering focused, fully-integrated municipal financial advisory and consulting services. We build strong, long-lasting client relationships - working directly and collaboratively with your staff - to complete projects and drive initiatives forward. We leverage decades of industry experience, deep market and community knowledge, and our unique team-based approach to successfully guide clients through all facets of public finance. Ehlers’ services include: SECTION 1: FIRM OVERVIEW Financial Management Planning Strategic Planning Research, Analysis & Studies Policy Development Projection Modeling Utility Rate Analysis Debt Issuance & Management Competitive, Negotiated & Private Placement Specialized Instruments Credit Rating Reviews Continuing Disclosures Paying Agent Services Compliance Policies Economic Development & Redevelopment Investments & Treasury Management Policy Development & Evaluation Strategy Creation & Implementation Reporting Cash Flow Analysis & Reporting Treasury Management Consulting Arbitrage Consulting Planning & Project Management Feasibility & Cash Flow Analysis Developer Selection & Negotiation TIF/Special District Creation & ManagementCLIENTS CONSTITUENTS COMMUNITIES Page 71 of 229 Proposal to the City of Farmington, Minnesota Submitted by Ehlers - October 13, 2023 5 Executive Summary A Long-term Financial Plan (the “Plan”) is comprised of a long-range operating budget and capital improvement plan with a funding strategy. It will guide the City’s financial future and determine how the City can adapt to operating changes and meet its operating and capital needs. By combining the City’s future needs and existing obligations into one projection, the Plan will measure the total tax impacts of the City’s operations and capital projects, now and into the future. For example, the Plan will show the impact of any new facilities on the City’s tax rate, tax levy, and sample property tax and rate payers. The planning process includes facilitated Council discussions to establish consensus among Council and staff on funding sources, property tax levels, and priority capital improvements. Financial planning is a team effort, and we regard ourselves as an extension of staff. As such, we will communicate with City staff regularly during the planning process to request information, seek clarification, provide regular updates, and review work completed to date. At a minimum, we will schedule meetings and calls to review project goals, the initial working draft, the final draft, and the Council presentation. Please see Section 3 for more information on timing of communications, SECTION 2: EXECUTIVE SUMMARY Page 72 of 229 Proposal to the City of Farmington, Minnesota Submitted by Ehlers - October 13, 2023 6 Approach & Timeline Ehlers will build a customized Plan for the City of Farmington with cashflow projections for each fund that roll up into a summary forecast. The result: a funding strategy for the City’s priority projects that meets the City’s parameters for affordability. The City’s scope of work requests all funds be included in the long-term plan. Based on clarification received from the City we propose to exclude smaller funds not viewed as material to the City’s long-term financial planning. Please see Appendix A for a detailed list of the 36 funds included in our proposal. Ehlers completed a Utility Rate Study for the City’s Sewer Operations, Storm Water, and Water Funds in 2023. With the completion of the study, these funds have a plan for moving forward and are therefore included as optional. More specifically, that study resulted in: »A full understanding of the capital needs of the utility system »Options & recommendations for utility rates through 2032 »Recommendations for appropriate cash balances and a strategy for maintaining reserves »A funding plan for capital projects »A flexible planning tool that will help the City respond to changing circumstances and assumptions about capital investments, funding options, and customer growth If the City opts to include the Utility Funds, we will efficiently incorporate that prior work. Ehlers’ formal communications anticipate three teleconferences with staff and two meetings with the City Council. During the initial staff meeting, we will discuss policy issues and capital needs to prepare a baseline plan of the City’s financial condition that incorporates existing operations plus all proposed capital expenditures. The baseline plan will show financial impacts related to debt coverage, fund balances, tax impacts and apparent trends. In the second staff meeting we will review the draft Plan and incorporate additional staff feedback. The baseline plan incorporating all staff feedback will be presented to the Council as a starting place for discussion. We will show the financial impact of accomplishing all the City’s goals and determine if priorities need to be set between competing demands. We will also explore options for additional revenues, such as increased or new franchise fees. SECTION 3: APPROACH & TIMELINE Page 73 of 229 Proposal to the City of Farmington, Minnesota Submitted by Ehlers - October 13, 2023 7 Based on Council direction, we will refine the Plan with up to two scenarios that alter the timing of capital projects and alternative revenue sources. This will be reviewed with staff, and feedback will be incorporated into a final Plan that will be presented to the Council and the public at a second Council meeting. The Plan will deliver an achievable, comprehensive financial planning tool covering the next ten years that has been reviewed by and agreed upon by the City Council. The Plan includes: »Annual projected budget numbers for each of the next 10 years »All operating expenses and capital improvements identified by the City »Expected changes in the tax base »Facilitated Council discussions to reach consensus on prioritization of projects and potential new revenues »A “financial health” check-up that incorporates bond rating criteria, fund balance metrics, and IRS restrictions on debt service funds. »Up to two scenarios for evaluating the timing and amount of capital expenditures »Presentation materials for Council and City use Most importantly, the planning process will result in a feasible funding plan for the City’s operations well into the future. Timeline Ehlers anticipates the following timeline to fulfill the scope of services. Ehlers participants will include a Senior Municipal Advisor and Senior Fiscal Consultant for all meetings. The timeline assumes the City Council approves the contract on November 20th, 2023, as stated in the City’s request for proposals. Activity Tasks Outcomes Timing Participants Kick-off Meeting Policy and financial challenges, priorities, and data Information gathered to prepare baseline Plan November Ehlers & City Staff Base Plan Development Build customized Plan and input data gathered at kick off meeting Baseline Plan for review with Staff December - January Ehlers Base Plan Review Meeting #1 Review Plan, assumptions, and clarifying questions Staff input and direction December - January Ehlers & City Staff SECTION 3: APPROACH & TIMELINE Page 74 of 229 Proposal to the City of Farmington, Minnesota Submitted by Ehlers - October 13, 2023 8 Activity Discussion Topics Outcomes Timeline Participants Plan Refinement & Review Meeting #2 Incorporate staff feedback for up to two scenarios into the Plan Refined Plan for City Staff review January Ehlers & City Staff Council Presentation #1 Overview Plan, inputs, financial impacts, and policy issues with Council to solicit feedback Council direction on policy issues, affordability, new revenue sources and refinement January City Council, Ehlers & City Staff Plan Updates Update Plan based upon Council direction Updated Plan for review with Staff January - February Ehlers Updated Plan Review Meeting #3 Review Council directed changes to Plan Updated Plan and presentation for Council January - February Ehlers & City Staff Council Presentation #2 Overview updated Plan based upon Council direction and review options if any Finalized Plan, strategic direction for Council and messaging for constituents March City Council, Ehlers & City Staff Information to be Provided by the City Long-term financial Plans are a team effort. We will work with the City to obtain the following information. Ehlers can obtain some of this information from the City’s website and already has some on file. »3 years of audited financial statements »Budget for 2024 »YTD financial information for 2023 »10-year Capital Improvement Plan »New staffing or operational initiatives »Projected growth estimates for next ten years »Debt repayment schedules »Information on the expiration date and tax base of the TIF Districts »Growth estimates »Other information as necessary SECTION 3: APPROACH & TIMELINE Page 75 of 229 Proposal to the City of Farmington, Minnesota Submitted by Ehlers - October 13, 2023 9 Professional Experience Ehlers brings strong capital improvement plan experience across all the markets we serve, particularly in Minnesota. In the last five years alone, we’ve completed more than 100 long-term financial planning initiatives for our clients. We believe our experience is best demonstrated by the following case studies: Reference: The City of Hopkins, Minnesota Mike Mornson City Manager 952-938-8474 mmornson@hopkinsmn.com Project: Ehlers completed a Financial Plan with facilitated strategic planning in 2019 and we are currently engaged in the process of updating the plan with new City priorities. The original plan addressed several issues the City was facing: »The fund balance was below City policy requirements »The Center for the Arts was unable to repay an interfund loan »The City wanted to add 7 new FTE »The City needed to identify funding for street projects averaging $2.6M per year over five years Result: Ehlers developed a Financial Plan to address these issues over five years at an average cost to taxpayers (on a median value home) of $62 per year. Ehlers continues to work with the City to update the Plan annually with the current update addressing the continued need to invest in community services through additional public safety and planning staff and new equipment and capital needs. SECTION 4: PROFESSIONAL EXPERIENCE Page 76 of 229 Proposal to the City of Farmington, Minnesota Submitted by Ehlers - October 13, 2023 10 Reference: The City of Forest Lake, Minnesota Patrick Casey City Administrator 651-209-9750 Patrick.casey@ci.forest-lake.mn.us Project: The City of Forest Lake was evaluating how to fund an aggressive pavement management program to address deferred street reconstruction. In addition, to serve a growing community, they planned to add $4.5 million in parks, new city facilities, additional staff and new vehicles and equipment. Ehlers completed a 10-year financial plan that measured the tax and rate impacts of completing their capital projects. Result: Through facilitated discussion, the Council prioritized projects and altered their timing to ensure the tax impact would be affordable. Our work also resulted in a funding plan that determined how much of the capital cost could be funded with cash vs. bonds. Finally, Ehlers completed cash flow projections for the City’s water, sewer, and storm water funds to reflect the utility portion of the street projects. Reference: The City of Cottage Grove, Minnesota Jennifer Levitt City Administrator 651-458-2890 jlevitt@cottagegrovemn.gov Project: The City of Cottage Grove has a new staffing plan adding 17.5 FTE over the next four years, significant equipment needs, a new park building that needs to be constructed, improvements to their golf course irrigation system and $115 million in other various road and capital improvement needs – all putting significant upward pressure on the tax levy in the short-term. Ehlers facilitated discussions with Council and staff to determine priorities and acceptable levels of tax increases. The feedback was used to develop a customized ten-year financial plan measuring the tax impact of adding staff and completing their capital projects. Result: Ehlers developed a final plan that achieved the City’s vision over a longer time horizon, “layering in” the priority staff additions and equipment purchases. As part of the process the City revised its fund balance policy to provide more financial flexibility and address the reserve needs in funds beyond the general fund. As a result of the thorough and inclusive decision-making process that was part of the financial plan; the City streamlined its 2024 budgeting process using the financial plan as its guide. SECTION 4: PROFESSIONAL EXPERIENCE Page 77 of 229 Proposal to the City of Farmington, Minnesota Submitted by Ehlers - October 13, 2023 11 Proposed Project Team Ehlers proposes the following team of professionals - bringing more than 75 years combined expertise in public finance and long-term financial planning - to deliver a high quality, accurate plan that will address the City’s financial and policy concerns. Below are the summary resumes for our proposed project team: MUNICIPAL ADVISORS Rebecca Kurtz Senior Municipal Advisor Project Management Support FISCAL CONSULTANTS Kyle Sawyer Senior Fiscal Consultant Financial Planning Analysis Elizabeth Diaz Senior Fiscal Consultant Financial Planning Analysis Jason Aarsvold Senior Municipal Advisor Jason serves as a Senior Municipal Advisor for Ehlers’ Minnesota Team. He brings more than two decades of municipal development and finance experience to his role with the firm. Jason has analyzed and negotiated some of the most complicated economic development and redevelopment projects in Minnesota, navigating complex financial issues and creating new, innovative community solutions. One of Jason’s greatest attributes is his ability to demystify the complexities of the economic development process for his clients. He unites community leaders, developers and residents, guiding them through program development with his strong market knowledge and public finance expertise. Jason Aarsvold Senior Municipal Advisor Primary Contact & Project Manager Rebecca Kurtz Senior Municipal Advisor Rebecca is a Senior Municipal Advisor who joined Ehlers in 2000 to help Minnesota cities, counties and special districts with the design and implementation of financial solutions for their communities. Ehlers’ clients benefit from Rebecca’s experience in tax increment financing and tax abatement, debt issuance, development analysis and public finance related projects. Prior to joining Ehlers, Rebecca worked for Minnesota’s Department of Employment and Economic Development and South Dakota’s Governor’s Office of Economic Development. SECTION 4: PROFESSIONAL EXPERIENCE Page 78 of 229 Proposal to the City of Farmington, Minnesota Submitted by Ehlers - October 13, 2023 12 Kyle Sawyer Senior Fiscal Consultant Kyle is a Senior Fiscal Consultant supporting our Municipal Advisors across all Ehlers’ markets with project management and analysis for municipal debt transactions, economic development and redevelopment initiatives, long-term financial planning and fiscal studies. Kyle brings more than a decade of direct local government experience to his role with the firm. From 2011 to 2021, he served as an Accountant and Assistance Finance Director for the City of Edina, where he was integral in developing Capital Improvement Plans, constructing the biennial budget and conducting annual audits. He also assisted with debt planning and issuance, investments oversight and cash flow management. Before that, Kyle worked as an auditor for cities and school districts across Minnesota. SECTION 4: PROFESSIONAL EXPERIENCE Elizabeth Diaz Senior Fiscal Consultant Elizabeth brings over 25 years of experience in financial planning and management for local governments. She fulfills an integral role helping Minnesota governments and public agencies design and implement financial solutions that advance community priorities. Before joining Ehlers in 2000, Elizabeth amassed nine years of local government experience, including working for the Minnesota State Auditor’s office and serving as the accountant and finance director for a Twin Cities suburb. Page 79 of 229 Proposal to the City of Farmington, Minnesota Submitted by Ehlers - October 13, 2023 13 Pricing Ehlers proposes to complete the Long-term Financial Plan, including a fund-by-fund analysis of 39 funds, for a fixed fee of $30,000. For any additional work the City requests, we will bill hourly at the following rates: Position Hourly Rate Senior Municipal Advisor $265 Senior Fiscal Consultant $265 Fiscal Consultant (if required) $250 Ehlers will bill the City for actual hours which may result in a lower overall cost. As the project unfolds, Ehlers will invoice monthly for work completed in the prior month with descriptions of project activities and the time expended. Ehlers bills for one-way travel to the City which is reflected in the not-to-exceed cost. SECTION 5: PRICING Page 80 of 229 Proposal to the City of Farmington, Minnesota Submitted by Ehlers - October 13, 2023 14 Long-Term Financial Plan - Funds Included Based on our discussions and a review of your audited financial statements, we propose including the following funds into the study: »General Fund »Federal Aid Fund »Debt Service Funds * 2011A * 2013A * 2015A * 2016A * 2016B * 2019A * 2020A * 2022A »Maintenance Fund »Private Capital Projects Fund »Spruce Street Fund »Liquor Operations Fund »Solid Waste Fund »Street Light Fund »Internal Service Funds * Employee Expense * Property and Liability Insurance * Fleet * Information Technology »Economic Development Authority (EDA) Fund »Park Improvement Fund »Arena (Ice) Fund »Cable Communications Fund »State Aid Construction Fund »Fire Fund »Recreation Fund »Permanent Improvement Revolving Fund »General Capital Equipment Fund APPENDIX A: LONG-TERM FINANCIAL PLAN - FUNDS INCLUDED Page 81 of 229 Proposal to the City of Farmington, Minnesota Submitted by Ehlers - October 13, 2023 15 »Parking Lot Project Fund »Akin Street Reconstruction Fund »Trail Maintenance »Building Maintenance »Sanitary Sewer Trunk Fund »Storm Water Trunk Fund »Water Trunk Fund »Sewer Operations Fund »Storm Water Fund »Water Fund The City’s scope of work asks for all funds to be included in the long-term plan. Based on clarification received from the City, we excluded smaller funds not viewed as material to it’s long- term financial planning. The funds excluded are non-major special revenue funds, including: Dakota Broadband, Trident Housing Tax Increment, Police Donations and Forfeitures, Police Public Outreach, and K-9 funds. If there is a desire to include any of these funds, we would be happy to do so and can provide the City with the associated cost estimate. The above listed funds have the potential to impact the property tax levy, and we want to gather a complete picture of all potential tax impacts when we develop a long-term Financial Plan. The Plan will provide the Council and the public with a road map to meet strategic priorities and an understanding how today’s decisions will affect constituents in the future. SECTION 3: PROJECT OVERVIEW & APPROACH Page 82 of 229  229169v1     EXHIBITA SCOPEOFWORK   Page 83 of 229  229169v1 EXHIBITB INSURANCEREQUIREMENT  1.StandardWorker’sCompensationandEmployer’sLiabilityInsurancecoveringallemployeesof ContractorinvolvedwiththeperformanceoftheServices,withpolicyamountsandcoveragein compliancewiththelawsofthejurisdictioninwhichtheServiceswillbeperformed.  2.CommercialGeneralLiabilityInsurancewithminimumlimitsofliabilityofnotlessthan $1,000,000peroccurrenceforbodilyinjuryandpropertydamageliability;$2,000,000designated location,generalaggregate,and$1,000,000umbrella.Suchinsurancewillincludecoveragefor contractualliability,personalinjuryandbroadformpropertydamage,andshallincludeallmajor divisionsofcoverageandbeonacomprehensivebasisincluding,butnotlimitedto:  a.premisesoperations; b.personalinjuryliabilitywithoutemploymentexclusion; c.limitedcontractual; d.broadformpropertydamages,includingcompletedoperations; e.medicalpayments; f.productsandcompletedoperations; g.independentconsultantscoverage; h.coverageinclusiveofconstructionmeans,methods,techniques,sequences,and procedures,employedinthecapacityofaconstructionconsultant;and  3.ComprehensiveAutomobileLiabilityInsurancecoveringallowned,nonͲownedandhired automobilesusedinconnectionwiththeperformanceoftheServices,withlimitsofliabilityofnotless than$1,000,000combinedsinglelimitbodilyinjuryandpropertydamage.  4.Professionalliabilityinsuranceintheamountof$2,000,000.00eachoccurrence.    Page 84 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Julie Flaten, Asst City Admin/HR Director Department: HR Subject: 2024 Non-Bargaining Compensation Increases and Approval of Memorandum's of Understanding with Unions for Market Adjustments to Wages Meeting: Regular Council - Dec 18 2023 INTRODUCTION: Approve the compensation scale for non-bargaining employees, including the City Administrator, and the memorandum's of understanding with four union groups for 2024 market adjustments to wages. DISCUSSION: Annually, the City Council reviews the compensation of employees. This process is done in conjunction with the budget process. In 2023, a compensation study was conducted, and the wage scale was proposed to move to the 75th percentile of the comparable market. This adjustment was approved as part of the 2024 budget. All four union groups have contracts that run through December 31, 2024, and those contracts include a 3.0% cost of living adjustment. The unions are agreeable to the included memorandums of understanding, which will provide for the market adjustment on top of the cost-of-living increase. BUDGET IMPACT: Wages are included in the 2024 proposed budget. ACTION REQUESTED: Approve the compensation scales for non-bargaining employees, including the City Administrator, and the memorandum's of understanding for AFSCME Maintenance Unit, AFSCME Clerical, Technical and Professional Union, LELS Patrol Unit, and LELS Sergeants Unit. ATTACHMENTS: 2024 Wages-Patrol MOU LELS-Patrol 2024 Wage Table 2024 Wages MOU-Sergeants LELS-Sergeant 2024 Wage Table 2024 Wages-AFSCME CTP MOU 2024 Wages-AFSCME MT MOU AFSCME MT Union 2024 Wage Tables Page 85 of 229 AFSCME CTP Union 2024 Wage Tables 2024 Non-Union Wage Scale Page 86 of 229 Me m o r a n d u m of Un d e r s t a n d i n g (M O U ) Th i s me m o r a n d u m of un d e r s t a n d i n g is ma d e an d en t e r e d in t o be t w e e n th e Ci t y of Fa r m i n g t o n , Mi n n e s o t a , (” E m p l o y e r ” ) , an d La w En f o r c e m e n t La b o r Se r v i c e s (L E L S ) Lo c a l #1 8 7 . Wh e r e a s , th e Ci t y an d Un i o n ar e pa r t i e s to a co l l e c t i v e ba r g a i n i n g ag r e e m e n t (" C B A ” ) , in ef f e c t fr o m Ja n u a r y 1, 20 2 2 th r o u g h De c e m b e r 31 , 20 2 4 , an d Wh e r e a s , Ap p e n d i x ”A ” pr o v i d e s fo r a 3. 0 0 % co s t of li v i n g ad j u s t m e n t fo r th e ye a r 20 2 4 , an d No w th e r e f o r e , th e pa r t i e s ag r e e he r e t o ag r e e to th e fo l l o w i n g : 1) th a t th e co s t of li v i n g ad j u s t m e n t wi l l be 3. 0 0 % pl u s a ma r k e t ad j u s t m e n t fo r 20 2 4 , Se e up d a t e d wa g e sc h e d u l e . Th e te r m s of th e Me m o r a n d u m sh a l l re m a i n in ef f e c t th r o u g h De c e m b e r 31 , 20 2 4 , un l e s s th e pa r t i e s mu t u a l l y ag r e e ot h e r w i s e . in Wi t n e s s wh e r e o f , th e pa r t i e s he r e t o ha v e ex e c u t e d th i s Me m o r a n d u m of Un d e r s t a n d i n g on th i s da y of 20 2 3 . CI T Y OF FA R M l N G T O N LE L S LO C A L 18 7 Jo s h u a Ho y t , Ma y o r An d r e w Va n Do r n , Di r Q .Q > Q : - Ca s s i e Re d m o n d - P a l o , Of f i c e r Ly n n Go r s k i , Ci t y Ad m i n i s t r a t o r \Z - " - ” / Sh i r l e y Bu e c k s l e r , Ci t y Cl e r k Da n Mi l l e r , Of f i c e r {< 2 e v r / ( I r v Ma g m a . ‘ - / v Ke v i n Mc G r a t h , LE L S ll i Page 87 of 229 WAGE SCHEDULE FOR 2024 January 1, 2024 ANNUAL MONTHLY HOURLY OVERTIME WAGE WAGE RATE RATE Start 74,033.90$ 6,169.49$ 35.593$ 53.390$ After 6 months 78,387.11$ 6,532.26$ 37.686$ 56.529$ After 1 year 82,740.31$ 6,895.03$ 39.779$ 59.668$ After 2 years 91,448.99$ 7,620.75$ 43.966$ 65.949$ After 3 years 100,155.40$ 8,346.28$ 48.152$ 72.227$ Page 88 of 229 Me m o r a n d u m of Un d e r s t a n d i n g (M O U ) Th i s me m o r a n d u m of un d e r s t a n d i n g is ma d e an d en t e r e d in t o be t w e e n th e Ci t y of Fa r m i n g t o n , Mi n n e s o t a , (’ ’ E m p l o y e r ” ) , an d La w En f o r c e m e n t La b o r Se r v i c e s (L E L S ) Lo c a l #3 8 7 . Wh e r e a s , th e Ci t y an d Un i o n ar e pa r t i e s to a co l l e c t i v e ba r g a i n i n g ag r e e m e n t (” C B A " ) , in ef f e c t fr o m Ja n u a r y 1, 20 2 2 th r o u g h De c e m b e r 31 , 20 2 4 , an d Wh e r e a s , Ap p e n d i x ”A ” pr o v i d e s fo r a 3. 0 0 % co s t of li v i n g ad j u s t m e n t fo r th e ye a r 20 2 4 , an d No w th e r e f o r e , th e pa r t i e s ag r e e he r e t o ag r e e to th e fo l l o w i n g : 1) th a t th e co s t of li v i n g ad j u s t m e n t wi l l be 3. 0 0 % pl u s a ma r k e t ad j u s t m e n t fo r 20 2 4 , Se e up d a t e d wa g e sc h e d u l e . Th e te r m s of th e Me m o r a n d u m sh a l l re m a i n in ef f e c t th r o u g h De c e m b e r 31 , 20 2 4 , un l e s s th e pa r t i e s mu t u a l l y ag r e e ot h e r w i s e . In Wi t n e s s Wh e r e o f , th e pa r t i e s he r e t o ha v e ex e c u t e d th i s Me m o r a n d u m of Un d e r s t a n d i n g on th i s da y of 20 2 3 . CI T Y OF FA R M I N G T O N LE L S LO C A L 38 7 im Mu hy , Se r g e a n t ‘Z ? / J Ly n n Go r s k i , Ci t y Ad m i n i s t r a t o r Bo b Sa u t e r , Se r g e a n t ?l e Sh i r l e y Bu e c k s l e r , Ci t y Cl e r k Se a n Mc K n i g h t , LE L S Jo s h u a Ho y t , Ma y o r Page 89 of 229 Monthly Hourly Overtime Annual Wage Wage Rate Rate January 1, 2024 Start 104,061.08$ 8,671.76$ 50.029$ 75.044$ After 1 year 109,010.99$ 9,084.25$ 52.409$ 78.614$ After 2 years 114,006.10$ 9,500.51$ 54.811$ 82.216$ After 3 years 120,131.33$ 10,010.94$ 57.755$ 86.633$ WAGE SCHEDULE Page 90 of 229 Memorandum of Understanding This Memorandum of Understanding is made and entered into between the City of Farmington, Minnesota, (“Employer”), and American Federations of State, County, and Municipal Employees, Council 5, Local Union 3815, AFL-CIO, Clerical, Technical & Professional. Whereas, the City and Union are parties to a collective bargaining agreement (“CBA”), in effect from January 1, 2022 through December 31, 2024, and Whereas, Article 30 – Wages provides for a 3.00% cost of living adjustment for the year 2024, and Now therefore, the parties agree hereto agree to the following: 1) that the cost of living adjustment will be 3.00% plus a market adjustment for 2024, See Appendix B updated tables. The terms of the Memorandum shall remain in effect through December 31, 2024, unless the parties mutually agree otherwise. In Witness Whereof, the parties hereto have executed this Memorandum of Understanding on this _____day of _________________________2023. CITY OF FARMINGTON AFSCME CTP Local 3815 _____________________________ __________________________ Joshua Hoyt, Mayor Tyler Schneider, President _____________________________ ___________________________ Lynn Gorski, City Administrator Matt Thomas, Treasurer _____________________________ ___________________________ Shirley Buecksler, City Clerk Julie Dornack, AFSCME ___________________________ Crystal Kreklow, AFSCME State Field Director Page 91 of 229 Memorandum of Understanding This Memorandum of Understanding is made and entered into between the City of Farmington, Minnesota, (“Employer”), and American Federations of State, County, and Municipal Employees, Council 5, Local Union 3815, AFL-CIO, Maintenance Unit. Whereas, the City and Union are parties to a collective bargaining agreement (“CBA”), in effect from January 1, 2022 through December 31, 2024, and Whereas, Article 30 - Wages provides for a 3.00% cost of living adjustment for the year 2024, and Now therefore, the parties agree hereto agree to the following: 1) that the cost of living adjustment will be 3.0% plus a market adjustment for 2024, See Appendix B updated tables. 2) the position of Lead Mechanic will be added as a grade B25/B32 in Appendix B. The terms of the Memorandum shall remain in effect through December 31, 2024, unless the parties mutually agree otherwise. In Witness Whereof, the parties hereto have executed this Memorandum of Understanding on this _____day of _________________________2023. CITY OF FARMINGTON AFSCME MT Local 3815 _____________________________ ___________________________ Joshua Hoyt, Mayor Tyler Schneider, President _____________________________ ___________________________ Lynn Gorski, City Administrator Matt Thomas, Treasurer _____________________________ ___________________________ Shirley Buecksler, City Clerk Julie Dornack, AFSCME ____________________________ Crystal Kreklow, AFSCME State Field Director Page 92 of 229 Grade Position Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 Step 11 A13 Custodian 24.568 25.153 25.737 26.323 26.907 27.492 28.077 28.662 29.247 29.949 30.667 51,100.46 52,318.02 53,533.26 54,750.82 55,966.06 57,183.62 58,401.19 59,616.42 60,833.99 62,293.67 63,788.27 B22 Facilities/Park Maintenance Worker 29.231 29.928 30.624 31.320 32.016 32.712 33.407 34.104 34.800 35.635 36.490 Solid Waste Maintenance Worker 60,801.39 62,249.43 63,697.47 65,145.51 66,593.55 68,041.59 69,487.31 70,935.35 72,383.39 74,120.10 75,898.73 Parkkeeper B23 Facilities Maintenance Worker 31.561 32.312 33.064 33.815 34.566 35.318 36.069 36.821 37.572 38.474 39.398 65,646.04 67,208.16 68,772.60 70,334.71 71,896.83 73,461.27 75,023.38 76,587.83 78,149.94 80,026.34 81,946.97 B24/B31 Maintenance Worker 34.476 35.298 36.118 36.940 37.760 38.581 39.402 40.222 41.044 42.029 43.037 Mechanic 71,710.58 73,419.36 75,125.82 76,834.60 78,541.05 80,247.50 81,956.28 83,662.74 85,371.52 87,420.19 89,517.75 B25/B32 Lead Mechanic 37.973 38.877 39.781 40.686 41.589 42.493 43.398 44.302 45.206 46.291 47.402 Lead Public Works Worker 78,983.38 80,864.43 82,745.49 84,626.54 86,505.27 88,386.33 90,267.38 92,148.44 94,029.49 96,285.36 98,597.11 2024 Position and Salary Structure Effective January 1, 2024 Pa g e 9 3 o f 2 2 9 Grade Position Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 Step 11 A11 Part-time Liquor Store Clerk 15.95 16.60 17.27 17.68 18.11 A12 Liquor Store Clerk 22.238 22.769 23.298 23.828 24.357 24.887 25.416 25.945 26.475 27.110 27.761 Part-time RRC Program Assistant 46,255.81 47,359.30 48,460.46 49,561.62 50,662.78 51,763.95 52,865.11 53,966.27 55,067.43 56,389.76 57,742.35 A13 Administrative Support Technician 24.568 25.153 25.737 26.323 26.907 27.492 28.077 28.662 29.247 29.949 30.667 51,100.46 52,318.02 53,533.26 54,750.82 55,966.06 57,183.62 58,401.19 59,616.42 60,833.99 62,293.67 63,788.27 B21 Sr. Administrative Support Technician 26.903 27.544 28.184 28.825 29.465 30.106 30.747 31.387 32.027 32.796 33.583 Accounting Technician 55,959.07 57,290.71 58,622.35 59,956.32 61,287.95 62,619.59 63,953.56 65,285.20 66,616.83 68,216.20 69,852.81 B22 Administrative Support Specialist 29.231 29.928 30.624 31.320 32.016 32.712 33.407 34.104 34.800 35.635 36.490 Accounts Payable Specialist 60,801.39 62,249.43 63,697.47 65,145.51 66,593.55 68,041.59 69,487.31 70,935.35 72,383.39 74,120.10 75,898.73 B23 31.561 32.312 33.064 33.815 34.566 35.318 36.069 36.821 37.572 38.474 39.398 65,646.04 67,208.16 68,772.60 70,334.71 71,896.83 73,461.27 75,023.38 76,587.83 78,149.94 80,026.34 81,946.97 B24/B31 Administrative Assistant 34.476 35.298 36.118 36.940 37.760 38.581 39.402 40.222 41.044 42.029 43.037 Engineering Technician 71,710.58 73,419.36 75,125.82 76,834.60 78,541.05 80,247.50 81,956.28 83,662.74 85,371.52 87,420.19 89,517.75 Communications Specialist B25/B32 Liquor Store Manager 37.973 38.877 39.781 40.686 41.589 42.493 43.398 44.302 45.206 46.291 47.402 Natural Resoucres Specialist 78,983.38 80,864.43 82,745.49 84,626.54 86,505.27 88,386.33 90,267.38 92,148.44 94,029.49 96,285.36 98,597.11 GIS Specialist C41 Building Inspector 40.890 41.862 42.836 43.810 44.783 45.757 46.731 47.704 48.677 49.846 51.042 PW Project Coordinator 85,050.25 87,073.31 89,098.71 91,124.10 93,149.49 95,174.89 97,200.28 99,223.35 101,248.74 103,679.22 106,167.89 Recreation Supervisor Community Development Specialist Planning Coordinator C42 Planning Manager 43.218 44.247 45.276 46.304 47.334 48.363 49.391 50.421 51.450 52.684 53.949 Civil Engineer 89,892.57 92,034.36 94,173.83 96,313.30 98,455.10 100,594.56 102,734.03 104,875.83 107,015.29 109,583.12 112,213.81 2024 Position and Salary Structure Effective January 1, 2024 Pa g e 9 4 o f 2 2 9 Grade Position Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 Step 11 B24/B31 Human Resources Specialist 34.476 35.298 36.118 36.940 37.760 38.581 39.402 40.222 41.044 42.029 43.037 Payroll Specialist 71,710.58 73,419.36 75,125.82 76,834.60 78,541.05 80,247.50 81,956.28 83,662.74 85,371.52 87,420.19 89,517.75 PD Administrative Support Specialist B25/B32 IT Specialist 37.973 38.877 39.781 40.686 41.589 42.493 43.398 44.302 45.206 46.291 47.402 PD Administrative Support Manager 78,983.38 80,864.43 82,745.49 84,626.54 86,505.27 88,386.33 90,267.38 92,148.44 94,029.49 96,285.36 98,597.11 C41 Accountant 40.890 41.862 42.836 43.810 44.783 45.757 46.731 47.704 48.677 49.846 51.042 City Clerk 85,050.25 87,073.31 89,098.71 91,124.10 93,149.49 95,174.89 97,200.28 99,223.35 101,248.74 103,679.22 106,167.89 Economic Development Coordinator C42 Network Administrator 43.218 44.247 45.276 46.304 47.334 48.363 49.391 50.421 51.450 52.684 53.949 Parks and Facilities Supervisor 89,892.57 92,034.36 94,173.83 96,313.30 98,455.10 100,594.56 102,734.03 104,875.83 107,015.29 109,583.12 112,213.81 C43 Street & Utility Supervisor 46.440 47.754 49.069 50.383 51.697 53.012 54.326 55.640 56.955 58.322 59.721 96,594.99 99,328.11 102,063.56 104,796.67 107,529.79 110,265.24 112,998.36 115,731.47 118,466.92 121,309.45 124,219.50 C44/C51 Assistant City Engineer 49.227 50.859 52.258 53.658 55.058 56.457 57.857 59.258 60.657 62.113 63.604 Deputy Fire Chief 102,391.81 105,786.09 108,696.14 111,608.52 114,520.89 117,430.94 120,343.32 123,255.69 126,165.74 129,194.52 132,295.47 Liquor Operations Manager Building Official C45/C52 Police Captain 52.181 53.910 55.394 56.878 58.361 59.845 61.329 62.812 64.296 65.840 67.419 108,535.50 112,132.32 115,219.30 118,306.28 121,390.94 124,477.92 127,564.89 130,649.55 133,736.53 136,946.89 140,231.75 D61 Deputy Police Chief 55.050 57.144 58.717 60.291 61.863 63.436 65.008 66.581 68.154 69.790 71.465 IT Director 114,504.60 118,860.36 122,131.25 125,404.47 128,675.37 131,946.26 135,217.16 138,488.05 141,761.28 145,162.54 148,647.62 D62 Community & Economic Development Director 57.803 60.002 61.653 63.305 64.956 66.608 68.259 69.911 71.561 73.280 75.038 Finance Director 120,229.24 124,803.84 128,237.70 131,673.88 135,107.74 138,543.93 141,977.78 145,413.97 148,847.83 152,421.37 156,078.72 Fire Chief Assistant City Administrator/HR Director Municipal Services Director Parks & Recreation Director D63 60.692 63.001 64.736 66.470 68.204 69.937 71.672 73.406 75.140 76.943 78.790 126,240.24 131,042.99 134,651.45 138,257.58 141,863.71 145,469.84 149,078.30 152,684.44 156,290.57 160,041.04 163,882.30 D64 Police Chief 63.727 66.152 67.973 69.793 71.614 73.435 75.255 77.076 78.897 80.791 82.729 Public Works Director/City Engineer 132,551.55 137,596.41 141,384.13 145,169.53 148,957.24 152,744.96 156,530.36 160,318.07 164,105.79 168,044.84 172,077.00 D65/D72 66.913 69.460 71.371 73.283 75.195 77.106 79.018 80.930 82.841 84.830 86.866 139,179.48 144,475.77 148,452.06 152,428.35 156,404.64 160,380.93 164,357.22 168,333.51 172,309.80 176,446.73 180,681.43 E81 City Administrator 70.260 72.933 74.939 76.947 78.954 80.962 82.969 84.977 86.984 89.071 91.209 146,140.32 151,699.67 155,873.85 160,050.35 164,224.52 168,401.03 172,575.20 176,751.70 180,925.88 185,267.67 189,714.22 2024 Position and Salary Structure Effective January 1, 2024 Pa g e 9 5 o f 2 2 9 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Julie Flaten, Asst City Admin/HR Director Department: HR Subject: Employee Recognition Policy Update Meeting: Regular Council - Dec 18 2023 INTRODUCTION: Council is asked to approve the updated Employee Recognition Policy. DISCUSSION: Staff recommends updating the Employee Recognition Policy, effective January 1, 2024, to include a monetary service award for Paid-on-Call Firefighters. BUDGET IMPACT: Employee Recognition funds are included in the 2024 budget. ACTION REQUESTED: Approve the updated Employee Recognition Policy, effective January 1, 2024. ATTACHMENTS: Employee Recognition Policy-12.18.2023 Page 96 of 229 POC Firefighter service awards effective January 1, 2024. Employee Recognition Program Purpose Th e City’s Employee Recognition Program is designed to recognize employees for the ir accomplishments, and years of service which has contributed to the success of the City. The City acknowledges that recognition of employees provides retention, job satisfaction, and creates a more engaged work force. Service Awards In recognition of their years of service to the City, employees will receive a gift certificate to a business of their choice , located in the City of Farmington, for each year of service, in five- year increments. Full-tim e , part-time regular employees, and paid-on-call fire fighte rs are eligible for service awards. Years of Service Full-tim e Part -tim e and POC Fire fighte rs 5 $50 $25 10 $100 $50 15 $150 $75 20 $200 $100 25 $250 $125 30 $300 $150 35 $350 $175 40 $400 $200 Eligible employees will receive their award on or around their anniversary date. Recognition for years of service for employees that end employment and then are reinstated will be decided on a case-by-case basis. Recognition and Appreciation Events Annually the City may sponsor an Employee Recognition Event for City employees. The City may also sponsor an annual employee picnic or Holiday party. Page 97 of 229 POC Firefighter service awards effective January 1, 2024. Retirement or Resignation The City may provide a cake or comparable food item and non-alcoholic beverages when a City employee in good standing leaves the City. The City supports recognition plaques in recognition of long-time service or retirement. All amounts expended shall be reasonable in nature. The costs of elements of the Employee Recognition Program shall be included as separate line item in the annual budget and approved annually by the City Council as part of the overall budget process. Page 98 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Julie Flaten, Asst City Admin/HR Director Department: HR Subject: Paid-on-Call Firefighter Wages and Fire Officer Stipends Meeting: Regular Council - Dec 18 2023 INTRODUCTION: Council is asked to approve the 2024 Paid-on-Call Firefighter Wages and Fire Officer Stipends. DISCUSSION: During 2023, the City looked at comparable wages of paid-on-call Firefighters in similarly sized communities. It is recommended that the City increase the wages of Firefighters and Cadets and also increase the Fire Officer stipends for 2024. BUDGET IMPACT: Wages are included in the 2024 budget. ACTION REQUESTED: Approve the 2024 Paid-on-Call Firefighter Wages and Fire Officer Stipends. ATTACHMENTS: 2024 Fire Wages Page 99 of 229 2024 Paid-on-Call Firefighter Wages Cadet: $15.67 Firefighter: $16.79 2024 Fire Officer S�pends: Duty Officer: $5.60 (was previously Duty Chief) Crew Leader: $17.91 Lieutenant: $18.75 District Chief: $21.27 Assistant Chief: $21.55 Page 100 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Julie Flaten, Asst City Admin/HR Director Department: HR Subject: Personnel Policy Update Meeting: Regular Council - Dec 18 2023 INTRODUCTION: Council is asked to approve a personnel policy update. DISCUSSION: Effective January 1, 2024, Minnesota's new earned safe and sick time law requires employers to provide paid leave to all employees who work in the state. Any employee who works at least 80 hours in a year is eligible for paid sick and safe time leave. The leave is eligible to be used for a wide variety of reasons including when an employee is sick, to care for a sick family member, or to seek assistance if an employee or family member has experienced domestic abuse, sexual assault, stalking, or when a family member's school or care facility is closed due to the weather. The City of Farmington currently provides sick or personal time off to its full-time employees. This law expands who is eligible for paid leave to all employees working more than 80 hours in a year which will include temporary, seasonal, part-time liquor store, and paid-on-call fire employees. Also, the allowable uses for the new leave are more expansive than those allowed with the City's current paid sick leave. Accordingly, Staff is proposing the addition of the earned safe and sick time provision to its personnel policy. BUDGET IMPACT: N/A ACTION REQUESTED: Approve policy 5.12a Earned Safe and Sick Time (ESST). ATTACHMENTS: ESST Pesonnel Policy 12.2023 Page 101 of 229 Section 5.12a – Earned Safe and Sick Time (ESST) “Earned Sick and Safe Leave” is paid time off earned at one hour of Earned Sick and Safe for every 30 hours worked by an employee, up to a maximum of 48 hours of sick and safe leave per year. The hourly rate of Earned Sick and Safe Leave is the same hourly rate an employee earns from employment with the city. This specific leave applies to all employees (including temporary and part-time employees) performing work for at least 80 hours in a year for the city. Employees eligible to accrue regular sick leave time or personal time off each pay period will also accrue Earned Sick and Safe Leave, but accrued Earned Sick and Safe Leave will be subtracted from an employee’s accrued regular sick leave or personal time off each pay period, up to a maximum of 48 hours of Earned Sick and Safe Leave time per year. For the purposes of Earned Sick and Safe Leave a year is defined as a calendar year. (a) Earned Sick and Safe Leave Use The leave may be used as it is accrued in the smallest increment of time tracked by the city’s payroll system which is .25/hour or 15 minute increments for the following circumstances: • An employee’s own: o Mental or physical illness, injury or other health condition o Need for medical diagnosis, care or treatment, of a mental or physical illness o injury or health condition o Need for preventative care o Closure of the employee's place of business due to weather or other public emergency o The employee's inability to work or telework because the employee is prohibited from working by the city due to health concerns related to the potential transmission of a communicable illness related to a public emergency, or seeking or awaiting the results of a diagnostic test for, or a medical diagnosis of, a communicable disease related to a public emergency and the employee has been exposed to a communicable disease or the city has requested a test or diagnosis. o Absence due to domestic abuse, sexual assault, or stalking of the employee provided the absence is to: • Seek medical attention related to physical or psychological injury or disability caused by domestic abuse, sexual assault, or stalking • Obtain services from a victim services organization • Obtain psychological or other counseling • Seek relocation or take steps to secure an existing home due to domestic abuse, sexual assault or stalking • Seek legal advice or take legal action, including preparing for or participating in any civil or criminal legal proceeding related to or resulting from domestic abuse, sexual assault, or stalking • Care of a family member: Page 102 of 229 • With mental or physical illness, injury or other health condition Who needs medical diagnosis, care or treatment of a mental or physical illness, injury or other health condition Who needs preventative medical or health care Whose school or place of care has been closed due to weather or other public emergency When it has been determined by health authority or a health care professional that the presence of the family member of the employee in the community would jeopardize the health of others because of the exposure of the family member of the employee to a communicable disease, whether or not the family member has actually contracted the communicable disease • Absence due to domestic abuse, sexual assault or stalking of the employee’s family member provided the absence is to: • Seek medical attention related to physical or psychological injury or disability caused by domestic abuse, sexual assault, or stalking • Obtain services from a victim services organization • Obtain psychological or other counseling • Seek relocation or take steps to secure an existing home due to domestic abuse, sexual assault or stalking • Seek legal advice or take legal action, including preparing for or participating in any civil or criminal legal proceeding related to or resulting from domestic abuse, sexual assault, or stalking (b) For Earned Sick and Safe Leave purposes, family member includes an employee’s: • Spouse or registered domestic partner • Child, foster child, adult child, legal ward, child for whom the employee is legal guardian, or child to whom the employee stands or stood in loco parentis • Sibling, step sibling or foster sibling • Biological, adoptive or foster parent, stepparent or a person who stood in loco parentis when the employee was a minor child • Grandchild, foster grandchild or step grandchild • Grandparent or step grandparent • A child of a sibling of the employee • A sibling of the parent of the employee or • A child-in-law or sibling-in-law • Any of the above family members of a spouse or registered domestic partner • Any other individual related by blood or whose close association with the employee is the equivalent of a family relationship • Up to one individual annually designated by the employee (c) Advance Notice for use of Earned Sick and Safe Leave If the need for sick and safe leave is foreseeable, the city requires seven days’ advance notice. However, if the need is unforeseeable, employees must provide notice of the need for Earned Sick and Safe time as soon as practicable. When an employee uses Earned Sick and Safe time for more than three consecutive days, the city may require appropriate supporting documentation (such as medical documentation supporting medical leave, court records or related Page 103 of 229 documentation to support safety leave). However, if the employee or employee's family member did not receive services from a health care professional, or if documentation cannot be obtained from a health care professional in a reasonable time or without added expense, then reasonable documentation may include a written statement from the employee indicating that the employee is using, or used, Earned Sick and Safe Leave for a qualifying purpose. The city will not require an employee to disclose details related to domestic abuse, sexual assault, or stalking or the details of the employee’s or the employee’s family member’s medical condition. In accordance with state law, the city will not require an employee using Earned Sick and Safe leave to find a replacement worker to cover the hours the employee will be absent. (d) Carry Over of Earned Sick and Safe Leave Employees are eligible for carry over accrued but unused Earned Sick and Safe Leave time into the following year, but the total of Earned Sick and Safe Leave hours shall not exceed 80 hours at any given time. (e) Retaliation prohibited The city shall not discharge, discipline, penalize, interfere with, or otherwise retaliate or discriminate against an employee for asserting Earned Sick and Safe Leave rights, requesting an Earned Sick and Safe Leave absence, or pursuing remedies. Further, use of Earned Sick and Safe Leave will not be factored into any attendance point system the city may use. Additionally, it is unlawful to report or threaten to report a person or a family member’s immigration status for exercising a right under Earned Sick and Safe Leave. If an employee believes they have been retaliated against or improperly denied Earned Sick and Safe Leave rights under law, they can report a complaint to the City’s Human Resources Director or file a complaint with the Minnesota Department of Labor and Industry. (f) Benefits and return to work protections During an employee’s use of Earned Sick and Safe Leave, an employee will continue to receive the city’s employer insurance contribution as if they were working, and the employee will be responsible for any share of their insurance premiums. An employee returning from time off using accrued Earned Sick and Safe Leave is entitled to return to their city employment at the same rate of pay received when their leave began, plus any automatic pay adjustments that may have occurred during the employee’s time off. Seniority during Earned Sick and Safe Leave absences will continue to accrue as if the employee has been continually employed. When there is a separation from employment with the city and the employee is rehired again within 180 days of separation , previously accrued Earned Sick and Safe Leave that had not been used will be reinstated. An employee is entitled to use and accrue Earned Sick and Safe Leave at the commencement of reemployment. Page 104 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Julie Flaten, Asst City Admin/HR Director Department: HR Subject: Staff Changes and Recommendations Meeting: Regular Council - Dec 18 2023 INTRODUCTION: Approve the appointment of Sean Majewski as a Building Inspector and the promotion of Andrew Van Dorn to Police Sergeant. DISCUSSION: The City recently accepted applications for the vacant Building Inspector position. Eight candidates were interviewed, and Staff is recommending Sean Majewski be appointed as a Building Inspector. Sean has been a Building Inspector for the City of Faribault since 2022 and holds a Building Inspection Technology certification. Sean would begin employment on January 8, 2024. Andrew Van Dorn has been working for the City of Farmington since 2006. During that time, he has proven himself to be a valuable member of the Police Department. Officer Van Dorn has been an instructor in firearms, less lethal weapons, distraction devices, active shooter, defensive tactics, and reality-based training. He is currently an Assistant Commander on South Metro SWAT and was a School Resource Officer for five years. Sergeant Van Dorn will replace retiring Sergeant Jim Murphy in early 2024. BUDGET IMPACT: Wages are included in the budget. ACTION REQUESTED: Approve the appointment of Sean Majewski as a Building Inspector and the promotion of Andrew Van Dorn to Police Sergeant. Page 105 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Kellee Omlid, Parks & Recreation Director Department: Parks & Recreation Subject: Resolution Accepting Donation from Happy Harry’s Furniture to the Rambling River Center Meeting: Regular Council - Dec 18 2023 INTRODUCTION: A donation was recently made to the Rambling River Center (RRC) by Happy Harry’s Furniture. DISCUSSION: A donation in the amount of $569.90 was recently made by Happy Harry’s Furniture to the RRC. The donation was made through a program created in 2011 in which a customer of Happy Harry’s Furniture can select a charity of their choice to receive a donation when merchandise is purchased from the store. Then 10% from the sale to the customer is donated to the charity. The RRC is one of the charities that can be selected by customers. With these donations, Happy Harry’s Furniture has donated a total of $16,016.55 to the RRC since the program’s inception. This partnership with Happy Harry’s Furniture has been very beneficial over the long term given the funds that have been donated to the RRC. The donation has been deposited into the RRC Capital Improvement Fund to fund future building improvements and/or purchase new equipment and furniture. Staff will communicate the city’s appreciation on behalf of the city council to Happy Harry’s Furniture for their generous donation to the RRC. ACTION REQUESTED: Adopt Resolution R80-23 Accepting a Donation of $569.90 from Happy Harry’s Furniture to the Rambling River Center. ATTACHMENTS: R80-23 Accepting $569.90 from Happy Harry's Furniture Page 106 of 229 CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA RESOLUTION R80-23 A RESOLUTION ACCEPTING A DONATION OF $569.90 FROM HAPPY HARRY’S FURNITURE TO THE RAMBLING RIVER CENTER WHEREAS, the City of Farmington is generally authorized to accept donations of real and personal property pursuant to Minnesota Statutes Section 465.03 for the benefit of its citizens and is specifically authorized to accept gifts, as allowed by law; and WHEREAS, the following persons and entities have offered to contribute to the City: Happy Harry’s Furniture has donated $569.90 to the Rambling River Center ; and WHEREAS, it is in the best interest of the City to accept this donation. NOW, THEREFORE, BE IT RESOLVED that Mayor Hoyt and the Farmington City Council hereby accept with gratitude the generous donation of $569.90 from Happy Harry’s Furniture to the Rambling River Center. Adopted by the City Council of the City of Farmington, Minnesota, this 18th day of December 2023. ATTEST: ____________________________ ______________________________ Joshua Hoyt, Mayor Shirley R Buecksler, City Clerk Page 107 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Gary Rutherford, Police Chief Department: Police Subject: Resolution Accepting Donation from Dakota County Heroes Meeting: Regular Council - Dec 18 2023 INTRODUCTION: Dakota County Heroes made a donation to the Farmington Police Department to purchase a protective ballistic vest for K9 Smoke. DISCUSSION: Throughout 2023, the Dakota County Heroes group raised funds with the goal of donating sufficient funds to pay for a protective ballistic vest for the Farmington Police Department's K9 working dog, Smoke. They ultimately raised and donated $3,099.00 which will cover the entire cost of the vest. Staff has communicated the Police Department's and the City's appreciation on behalf of the City Council to Dakota County Heroes for their generous donation. BUDGET IMPACT: As this donation will fully fund the intended purchase, there is no budget impact. ACTION REQUESTED: Adopt the attached resolution accepting the donation of $3,099.00 from Dakota County Heroes. ATTACHMENTS: R77-23 Accepting Donation From Dakota County Heroes Page 108 of 229 CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA RESOLUTION R77-23 A RESOLUTION ACCEPTING A DONATION OF $3,099.00 FROM DAKOTA COUNTY HEROES WHEREAS, the City of Farmington is generally authorized to accept donations of real and personal property pursuant to Minnesota Statutes Section 465.03 for the benefit of its citizens and is specifically authorized to accept gifts, as allowed by law ; and WHEREAS, the following persons and entities have offered to contribute to the City: DAKOTA COUNTY HEROES has donated $3,099 to the Farmington Police Department to purchase a ballistic vest for K9 Smoke; and WHEREAS, it is in the best interest of the City to accept this donation. NOW, THEREFORE, BE IT RESOLVED that Mayor Hoyt and the Farmington City Council hereby accept with gratitude the generous donation of $3,099 from Dakota County Heroes to the Farmington Police Department. Adopted by the City Council of the City of Farmington, Minnesota, this 18th day of December 2023. ATTEST: ____________________________ ______________________________ Joshua Hoyt, Mayor Shirley R Buecksler, City Clerk Page 109 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Gary Rutherford, Police Chief Department: Police Subject: Resolution Accepting Grant Award from the Minnesota Chiefs of Police Foundation Meeting: Regular Council - Dec 18 2023 INTRODUCTION: The Farmington Police Department has been awarded a $2,500.00 grant from the Minnesota Chiefs of Police Foundation to implement a Bicycle Helmet Safety Campaign. DISCUSSION: The Minnesota Chiefs of Police Foundation Community Partnerships Grant Program supports Minnesota Police Departments in their efforts to build trust and strong relationships with their community. In the aftermath of a fatal bicycle crash this past summer, the Farmington Police Department's Community Engagement Team proposed starting a Bike Helmet Safety Campaign with a goal of providing free bike helmets to those children whose families might not be able to afford them. Staff applied for and was awarded a $2,500.00 grant under this program. Staff intends to launch this initiative in the spring of 2024. BUDGET IMPACT: None ACTION REQUESTED: Adopt Resolution R78-23 Accepting a Grant Award from the Minnesota Chiefs of Police Foundation for a Bicycle Helmet Safety Campaign, in the amount of $2,500.00. ATTACHMENTS: R78-23 MCPF Grant Award Bike Helmet Safety Campaign MCPF Grant Approval Notification Page 110 of 229 CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA RESOLUTION R78-23 A RESOLUTION ACCEPTING A GRANT AWARD FROM THE MINNESOTA CHIEFS OF POLICE FOUNDATION FOR A BICYCLE HELMET SAFETY CAMPAIGN WHEREAS, the Farmington Police Department submitted a grant application for a Bicycle Helmet Safety Campaign; and WHEREAS, the Minnesota Chiefs of Police Foundation has awarded a $2,500.00 grant to the Farmington Police Department for a Bicycle Helmet Safety Campaign; and WHEREAS, it is in the best interest of the City to accept this grant award. NOW, THEREFORE, BE IT RESOLVED that Mayor Hoyt and the Farmington City Council hereby accept with gratitude the $2,500.00 grant award from the Minnesota Chiefs of Police Foundation for a Bicycle Helmet Safety Campaign. Adopted by the City Council of the City of Farmington, Minnesota, this 18th day of December 2023. ATTEST: ____________________________ ______________________________ Joshua Hoyt, Mayor Shirley R Buecksler, City Clerk Page 111 of 229 Page 112 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Gary Rutherford, Police Chief Department: Police Subject: South Metro SWAT Joint Powers Agreement Meeting: Regular Council - Dec 18 2023 INTRODUCTION: The Farmington Police Department is one of 13 law enforcement agencies that are parties to the South advanced SWAT Metro South (JPA). provides powers joint SWAT Metro agreement emergency law enforcement response capabilities that Farmington could not provide alone. DISCUSSION: The South Metro SWAT JPA is set to expire at the end of 2023. The South Metro SWAT governing board, policies, team evaluates and reviews team leadership, from input with continually procedures, and the JPA. The board found no significant changes to the JPA were necessary during their most recent review. The attached version will renew the South Metro SWAT JPA for an additional five years, expiring on December 31, 2028. It has been reviewed by the City Attorney's Office. BUDGET IMPACT: Funding for the Farmington Police Department's participation in South Metro SWAT is provided for in the 2024 budget. ACTION REQUESTED: Approve the execution of the South Metro SWAT 2024-2028 Joint Powers Agreement. ATTACHMENTS: SMS JPA 2024-2028 Page 113 of 229 1 South Metro SWAT 2024 Joint Powers Agreement DAKOTA COUNTY SOUTH METRO SWAT 2024 JOINT POWERS AGREEMENT The parties to this Agreement are units of government responsible for critical incident response in their respective jurisdictions. This Agreement is made pursuant to the authority conferred upon the parties by Minn. Stat § 471.59. This Agreement amends and supersedes the DAKOTA COUNTY SOUTH METRO SWAT, 2019 JOINT POWERS AGREEMENT, and shall become effective only upon the approval and execution hereof by duly authorized officers of all the parties. NOW, THEREFORE, the undersigned governmental units, in the joint and mutual exercise of their powers, agree as follows: 1. Name. South Metro SWAT. 2. General Purpose. The purpose of this Joint Powers Agreement is to establish an organization to coordinate efforts to develop and provide joint response to critical incidents or high-risk entries where there is a risk of criminal violence, occurring within and outside of the parties’ jurisdictions. 3. Parties. The parties to this Agreement shall consist of the following units of government: City of Apple Valley City of Mendota Heights City of Farmington City of Rosemount City of Hastings City of South St. Paul City of Inver Grove Heights City of West St. Paul City of Lakeville County of Dakota City of Faribault County of Rice City of Northfield 4. Governance. 4.1. Governing Board. The governing board (“Board”) of the South Metro SWAT shall consist of one member and one alternate member appointed by the chief law enforcement officer of each party to this Agreement. Appointees shall be full-time supervisory peace officers of the appointing party. Resolutions or other documentation of the appointments shall be filed with the chair of the Board. Page 114 of 229 2 South Metro SWAT 2024 Joint Powers Agreement Members of the Board shall not be deemed to be employees of South Metro SWAT and shall not be compensated by the Board. 4.2. Terms. Appointees shall serve at the pleasure of the appointing party and may be removed only by the appointing party. 4.3. Officers. During the first quarter of each year the Board shall elect from its members a chair, vice chair and secretary/treasurer. The chair shall preside at all meetings of the Board and shall perform other duties as determined by the Board, including the authority to sign contracts authorized by the Board. The vice chair shall preside during the absence of the chair. The secretary/treasurer shall assist the chair in overseeing the Board’s budget and finances. 4.4. Meetings. The Board shall have regular quarterly meetings. Special meetings may be held on reasonable notice by the chair or vice chair. The presence of a simple majority of the members shall constitute a quorum. All meetings of the board shall be subject to the Open Meeting Law. 4.5. Voting. Each party to this agreement shall have one vote at any meeting of the Board. Proxy votes are not permitted. The Board shall function by a majority vote of board members or alternate members present, provided that a quorum is present. 5. Duties of the Board. 5.1. The Board will formulate a program to carry out its purpose. 5.2. The Board will coordinate information between the parties and the South Metro SWAT. 5.3. The Board has the exclusive authority to and shall appoint and supervise the Team Commander and Assistant Team Commanders of the South Metro SWAT, including appointment to fill vacancies in these positions. Appointments require the concurrence of the chief law enforcement officer of the Team Commander’s or Assistant Team Commander’s employer. 5.4 The Board may relieve the Team Commander or an Assistant Team Commander of their duties at any time upon simple majority vote of the Board. 5.5 The Board shall review annually the policies and procedures of the South Metro SWAT Team. Page 115 of 229 3 South Metro SWAT 2024 Joint Powers Agreement 6. Powers of the Board. 6.1. The Board may enter into any contract necessary or proper for the exercise of its powers or the fulfillment to its duties and enforce such contracts to the extent available in equity or at law, except that the Board shall not enter into any contract the term of which exceeds one year. 6.2. The Board may enter in written contracts with any party to provide budgeting and accounting and administrative services necessary or convenient for the Board. Such services may include but not be limited to: management of all funds, payment for contracted services and other purchases, relevant bookkeeping and record keeping, records management, training records, and purchase of equipment. 6.3. The Board may disburse funds in a manner which is consistent with this Agreement and with the method provided by law for the disbursement of funds by the party under contract to provide budgeting and accounting services. 6.4. The Board may apply for and accept gifts, grants or loans of money or other property (excluding real property) or assistance from the United States government, the State of Minnesota, or any person, association, or agency for any of its purposes; enter into any agreement in connection therewith; and hold, use and dispose of such money or other property and assistance in accordance with the terms of the gift, grant or loan relating thereto. 6.5. The Board must obtain and maintain liability insurance in amounts not less than the statutory liability limits established under Minn. Stat. Ch. 466 and may obtain other insurance it deems necessary to insure the parties, the Board, its members and employees of the parties for actions arising out of this Agreement, including, but not limited to extended reporting period coverage upon termination. With respect to employees of parties who have responded to a request for assistance pursuant to paragraph 9.5.1, they will be deemed to be taking actions arising out of this Agreement from the time they receive a request for assistance pursuant to this Agreement and commence traveling to the location where assistance is to be provided until the Team Commander or Assistant Team Commander has made the decision pursuant to paragraph 9.5.1 to recall the team. 6.6. All powers granted herein shall be exercised by the Board in a fiscally responsible manner and in accordance with the requirements of law. The purchasing and contracting requirements of the party providing budgeting and accounting shall apply to the Board. 6.7. The Board may cooperate with other federal, state and local law enforcement agencies to accomplish the purpose for which it is organized. Page 116 of 229 4 South Metro SWAT 2024 Joint Powers Agreement 6.8 South Metro SWAT does not have the authority to seize property for purposes of Minn. Stat. §§ 609.531-.5318. 6.9. The Board may retain legal counsel to advise the Board and provide civil legal services. The Dakota County Attorney’s Office is not the Board’s legal counsel. 6.10. All cash monies derived from South Metro SWAT operations shall remain the property of south Metro SWAT and shall be used in furtherance of South Metro SWAT efforts. 6.11 The Board is not responsible for investigating the conduct of the Team Commander, an Assistant Team Commander or any team member assigned to the South Metro SWAT. The Board will forward any complaints about any of the conduct of any such individual to the individual’s employing agency. 7. Budget and Finance. 7.1. Budget. By April 30 of each year the Board shall prepare and adopt a budget for the following calendar year and may amend the same from time to time. 7.2. Expenses. The parties intend to fund South Metro SWAT through annual contribution paid by each party. The Board shall establish the contribution by April 30 of the year prior to the year when the contribution is payable. The parties agree to pay the contribution as determined by the Board on or before January 31 of the year following the determination, provided that the respective city council or county board for each party has included funds for this purpose in its adopted budget. If a party elects to withdraw from this Agreement, there will be no reimbursement of any part of the contribution made for the year of withdrawal. 7.3. Accountability. If the Board elects to contract with a party to provide budgeting and accounting services, the Board shall enter into a written fiscal agent agreement with such party. The fiscal agent shall forward reports on South Metro SWAT receipts and disbursements to the members on a monthly basis. Fiscal agent responsibilities include but are not limited to management of all funds, including party contributions and grant funds, payment for contracted services, and bookkeeping and recordkeeping. All funds shall be accounted for according to generally accepted accounting principles. 7.4 Invoices. The secretary/treasurer may authorize payment of invoices which are consistent with the adopted budget and shall report to the Board all such invoices at its next regular meeting. Page 117 of 229 5 South Metro SWAT 2024 Joint Powers Agreement 8. South Metro SWAT Team members. 8.1. The Team Commander and Assistant Team Commanders and team members shall be licensed peace officers. The chief law enforcement officer of each party shall assign licensed peace officers to serve as South Metro SWAT team members, subject to approval of the Team Commander. Appointment as a Team Commander, Assistant Team Commander or team member pursuant to this Agreement shall not obligate any party to pay its employees so appointed any premium pay. 8.2. Team Commander, Assistant Team Commanders and team members assigned to the South Metro SWAT at all times will remain employees of the members’ respective jurisdictions and will not be employees of the Board. 9. Operations. 9.1. Team Structure. The Team Commander, with Board approval, will organize a leadership structure for South Metro SWAT that ensures efficient operation and deployment of resources. 9.2. Budget. The Team Commander will prepare and present to the Board annually a requested operating and capital improvement budget for the following year. 9.3. Communication. The Team Commander will act as a liaison between the South Metro SWAT and the Board, providing quarterly updates on team status, deployment, and budget. 9.4. Training. The Team Commander shall be responsible for arranging monthly and annual training events for team members, consistent with direction from the Board. The Team Commander shall also be responsible for maintaining records of the training received by team leaders and members as well as records of all other activities undertaken by the Team Commander, Assistant Team Commanders, team leaders and team members pursuant to this Agreement. 9.5. Deployment. 9.5.1. Requests for Assistance. Whenever a party, in its sole discretion, determines that conditions within its jurisdiction cannot be adequately addressed by that jurisdiction’s personnel and resources because of a critical incident or need for high risk entry, the party may request, in accordance with policies and procedures of the Board, that the South Metro SWAT deploy a South Metro SWAT team to assist the party’s jurisdiction. Upon a request for assistance, a South Metro SWAT team may be dispatched to the requesting party, in accordance with policies and procedures of the Board. A party may decline to make its personnel Page 118 of 229 6 South Metro SWAT 2024 Joint Powers Agreement available in response to any such request. Failure to provide assistance in response to a request made pursuant to this Agreement will not result in any liability to a party or South Metro SWAT. The Team Commander or Assistant Team Commander shall notify the Board members representing the employing agencies’ team members who are deployed anytime that assistance is provided pursuant to this Agreement. The Team Commander will report to the Board quarterly regarding any assistance provided to a party pursuant to this Agreement. The Team Commander or an Assistant Team Commander may at any time and in his/her sole judgment recall the team. The decision to recall a team provided pursuant to this Agreement will not result in liability to the South Metro SWAT, any party, or to the Team Commander or Assistant Team Commander who recalled the team. 9.5.2. Direction and Control. A party may at any time recall its personnel or equipment if it is considered to be in the best interests of the party to do so. South Metro SWAT team members will be under the tactical control of the Team Commander or other person in command of the scene, until a party withdraws its personnel or equipment. 9.5.3. Compensation. When the South Metro SWAT provides services to a requesting party, the personnel of the South Metro SWAT shall be compensated by their respective employers just as if they were performing the duties within and for the jurisdiction of their employer. No charges will be levied by the South Metro SWAT or by the parties for specialized response operations provided to a requesting party pursuant to this Agreement unless that assistance continues for a period exceeding 24 continuous hours. If assistance provided pursuant to this agreement continues for more than 24 continuous hours, and the assistance is not provided in connection with a police call for services, any party whose officers provided assistance for South Metro SWAT may, at the direction of the board, submit itemized bills for the actual cost of any assistance provided, including salaries, overtime, materials and supplies, to the South Metro SWAT and the South Metro SWAT shall submit the invoices to the requesting party. The requesting party shall reimburse the South Metro SWAT for that amount, and the South Metro SWAT shall forward the reimbursement to the responding party. 9.5.4. Workers’ Compensation. Each party to this Agreement shall be responsible for injuries to or death of its own employees in connection with services provided pursuant to this Agreement. Each party shall maintain workers’ compensation coverage or self-insurance coverage, covering its own personnel while they are providing assistance as a member of the South Metro SWAT. Each party to this Agreement waives the right to sue any other party for any workers’ compensation benefits Page 119 of 229 7 South Metro SWAT 2024 Joint Powers Agreement paid to its own employee or their dependents, even if the injuries were caused wholly or partially by the negligence of any other party or its officers, employees, or agents. The Team Commander, Assistant Commander, and team members are not employees of the South Metro SWAT. 9.5.5. Damage to Equipment. Each party shall be responsible for damage to or loss of its own equipment occurring during deployment of the South Metro SWAT. Each party waives the right to sue any other party for any damages to or loss of its equipment, even if the damages or losses were caused wholly or partially by the negligence of any other party or its officers, employees, or agents. 9.5.6. Liability and Indemnification. The South Metro SWAT is a separate and distinct public entity to which the parties have transferred all responsibility and control for actions taken pursuant to this Agreement. The South Metro SWAT shall defend and indemnify the parties and their officers, employees, volunteers, and agents from and against all claims, damages, losses, and expenses, including reasonable attorney fees, arising from the South Metro SWAT activities or operations, including deployments of a South Metro SWAT team, decisions of the Board, and South Metro SWAT training activities. To the full extent permitted by law, this Agreement is intended to be and shall be construed as a “cooperative activity” and it is the intent of the parties that they shall be deemed a “single governmental unit” for the purposes of liability, all as set forth in Minnesota Statutes, Section 471.59, subd. 1a(a); provided further that for purposes of that statute, each party to this Agreement expressly declines responsibility for the acts or omissions of the other parties. Nothing in this Agreement shall constitute a waiver of the statutory limits on liability set forth in Minnesota Statutes, Chapter 466 or a waiver of any available immunities or defenses. Under no circumstances shall a party be required to pay on behalf of itself and any other parties any amounts in excess of the limits of liability established in Minnesota Statutes Ch. 466 applicable to any third-party claim. The statutory limits of liability for some or all of the parties may not be added together or stacked to increase the maximum amount of liability for any third-party claim. Any excess or uninsured liability shall be borne equally by all the parties, but this does not include the liability of any individual officer, employee, Page 120 of 229 8 South Metro SWAT 2024 Joint Powers Agreement or agent which arises from his or her own malfeasance, willful neglect of duty, or bad faith. Nothing herein shall be construed to provide insurance coverage or indemnification to an officer, employee, or volunteer of any member for any act or omission for which the officer, employee or volunteer is guilty of malfeasance in office, willful neglect of duty, or bad faith. 9.6. Aid to Non-Parties. 9.6.1. Upon a request for assistance from a governmental unit that is not a party to this Agreement, a South Metro SWAT team may be dispatched to such governmental unit, in accordance with policies and procedures of the Board, for a period of time not to exceed 24 hours, provided that the police chief or Sheriff, as appropriate, has consented to such deployment of his or her respective employees. Failure to provide assistance in response to any such request shall not result in any liability to a party or South Metro SWAT. The Team Commander or Assistant Team Commander shall notify the chair of the Board any time such assistance is provided. The Team Commander or Assistant Team Commander may at any time and in his/her sole judgment recall the team. The decision to recall a team hereunder shall not result in any South Metro SWAT liability. 9.6.2. Any party whose officers provided assistance pursuant to this paragraph may, at the direction of the board, submit itemized bills for the actual cost of any assistance provided, including salaries, overtime, materials and supplies to the South Metro SWAT and the South Metro SWAT shall submit the invoices to the requesting entity. The South Metro SWAT shall forward any payments it receives in connection with such invoices to the invoicing party. 10. Term. The term of this Agreement shall be effective only when all the parties have signed this Agreement. The chair of the Board shall notify the parties in writing of the effective date of this Agreement. This Agreement shall continue in effect until terminated in accordance with paragraph 11.2 or December 31, 2028, whichever first occurs. 11. Withdrawal and Termination. 11.1. Withdrawal. Any party may withdraw from this Agreement upon 90 days’ written notice to the other parties. Withdrawal by any party shall not terminate this Agreement with respect to any parties who have not withdrawn. Withdrawal shall not discharge any liability incurred by any party prior to withdrawal. Such liability shall continue until discharged by law or agreement. Page 121 of 229 9 South Metro SWAT 2024 Joint Powers Agreement A withdrawing party shall have no claim to any property or assets owned or held by South Metro SWAT. 11.2. Termination. This Agreement shall terminate upon the occurrence of any one of the following events: (a) when necessitated by operation of law or as a result of a decision by a court of competent jurisdiction; or (b) when a majority of remaining parties agrees to terminate the Agreement upon a date certain. 11.3. Effect of Termination. Termination shall not discharge any liability incurred by the South Metro SWAT or by the parties during the term of this agreement. Upon termination and after payment of all outstanding obligations, property or surplus money held by the South Metro SWAT shall then be distributed to the parties in proportion to their contributions. 12.Notice. Notice of withdrawal shall be provided by first class mail to the following: Apple Valley Chief of Police 7100 147th Street West Apple Valley, MN 55124 Farmington Chief of Police 19500 Municipal Drive Farmington, MN 55024 Hastings Chief of Police 150 3rd Street East Hastings, MN 55033 Inver Grove Heights Chief of Police 8150 Barbara Avenue Inver Grove Heights, MN 55077 Lakeville Chief of Police 9237 183rd Street West Lakeville, MN 55044 Faribault Chief of Police 25 4th St NW Faribault, MN 55021 Northfield Chief of Police 1615 Riverview Dr Northfield, MN 55057 Mendota Heights Chief of Police Page 122 of 229 10 South Metro SWAT 2024 Joint Powers Agreement 1101 Victoria Curve Mendota Heights, MN 55118 Rosemount Chief of Police 2875 145th Street West Rosemount, MN 55068 South St. Paul Chief of Police 125 3rd Avenue North South St. Paul, MN 55075 West St. Paul Chief of Police 1616 Humbolt Avenue West St. Paul, MN 55118 Dakota County Sheriff Law Enforcement Center 1580 Highway 55 Hastings, MN 55033 Rice County Sheriff 118 3rd St NW Faribault, MN 55021 13.Miscellaneous. 13.1. Amendments. This agreement may be amended only in writing and upon the consent of each of the parties’ governing body. 13.2. Records, accounts and reports. The books and records of the South Metro SWAT shall be subject to the provisions of Minn. Stat. Ch. 13. 13.3. Counterparts. This agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. Counterparts shall be filed with the chair of the Board. 13.4. Additional Parties. Any other municipality within Dakota County or any municipality or County adjacent to Dakota County may become a party to this Agreement upon approval of the Board, adoption of a resolution by the entity’s governing body, execution of this Agreement, and filing of the same with the chair of the Board. Page 123 of 229 11 South Metro SWAT 2024 Joint Powers Agreement IN WITNESS WHEREOF, the parties have executed this Agreement on the dates indicated below. Approved by Dakota County Board COUNTY OF DAKOTA Resolution No.: 18- By: Dated: Approved as to form: Assistant County Attorney/ Date Name: Title: Date of Signature: KS18-357 2019 JPA for SOUTH METRO SWAT Page 124 of 229 12 South Metro SWAT 2024 Joint Powers Agreement CITY OF APPLE VALLEY By: Name: Title: Date of Signature: Attest: By: Name: Title: City Clerk Date: Page 125 of 229 13 South Metro SWAT 2024 Joint Powers Agreement CITY OF FARMINGTON By: Name: Title: Date of Signature: Attest: By: Name: Title: City Clerk Date: Joshua Hoyt Mayor December 18, 2023 Shirley R Buecksler December 18, 2023 Page 126 of 229 14 South Metro SWAT 2024 Joint Powers Agreement CITY OF HASTINGS By: Name: Title: Date of Signature: Attest: By: Name: Title: City Clerk Date: Page 127 of 229 15 South Metro SWAT 2024 Joint Powers Agreement CITY OF INVER GROVE HEIGHTS By: Name: Title: Date of Signature: Attest: By: Name: Title: City Clerk Date: Page 128 of 229 16 South Metro SWAT 2024 Joint Powers Agreement CITY OF LAKEVILLE By: Name: Title: Date of Signature: Attest: By: Name: Title: City Clerk Date: Page 129 of 229 17 South Metro SWAT 2024 Joint Powers Agreement CITY OF MENDOTA HEIGHTS By: Name: Title: Date of Signature: Attest: By: Name: Title: City Clerk Date: Page 130 of 229 18 South Metro SWAT 2024 Joint Powers Agreement CITY OF ROSEMOUNT By: Name: Title: Date of Signature: Attest: By: Name: Title: City Clerk Date: Page 131 of 229 19 South Metro SWAT 2024 Joint Powers Agreement CITY OF SOUTH ST. PAUL By: Name: Title: Date of Signature: Attest: By: Name: Title: City Clerk Date: Page 132 of 229 20 South Metro SWAT 2024 Joint Powers Agreement CITY OF WEST ST. PAUL By: Name: Title: Date of Signature: Attest: By: Name: Title: City Clerk Date: Page 133 of 229 21 Dakota County SOUTH METRO SWAT 2019 Joint Powers Agreement CITY OF NORTHFIELD By: Name: Title: Date of Signature: Attest: By: Name: Title: City Clerk Date: Page 134 of 229 22 Dakota County SOUTH METRO SWAT 2019 Joint Powers Agreement CITY OF FARIBAULT By: Name: Title: Date of Signature: Attest: By: Name: Title: City Clerk Date: Page 135 of 229 23 Dakota County SOUTH METRO SWAT 2019 Joint Powers Agreement COUNTY OF RICE By: Name: Title: Date of Signature: Attest: By: Name: Title: Rice County Sheriff Date: Page 136 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: John Powell, Public Works Director Department: Engineering Subject: Final Acceptance of Public Streets and Utilities and Release of Securities – Sapphire Lake 3rd Addition Meeting: Regular Council - Dec 18 2023 INTRODUCTION: Sapphire Lake Development Company, LLC has requested final acceptance of streets and utilities and release of the related securities within the Sapphire Lake 3rd Addition. DISCUSSION: The grading, sanitary sewer, water, storm sewer, and street work in the 3rd Addition is complete, consistent with the City’s construction standards, and the requirements of the Development Contract have been met. The City has received a certification letter from the developer’s engineer that the improvements were built in accordance with the approved plans and specifications. City Staff has completed multiple site visits during the construction. Staff has confirmed the improvements have been completed. The Development Contract requires maintenance bonds to be posted during the warranty period. The warranty period for the streets in one year and commences the date the wearing course was placed. The warranty period for the underground utilities is two years. BUDGET IMPACT: The City currently holds Letter of Credit No. 8016556-1 in the amount of $91,224. The maintenance bond will be in place before the letter is issued to the bank releasing this Letter of Credit for the 3rd Addition. ACTION REQUESTED: Approve the Final Acceptance of Public Streets and Utilities and Release of Securities - Sapphire Lake 3rd Addition Page 137 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: John Powell, Public Works Director Department: Engineering Subject: Tree City USA Recertification Meeting: Regular Council - Dec 18 2023 INTRODUCTION: For the past 33 years, the City of Farmington has been recognized as a Tree City USA community through the Arbor Day Foundation. DISCUSSION: The four standards that must be met to qualify as a Tree City are: a tree board or tree department, a tree care ordinance, a community forestry program with an annual budget of at least $2 per capita, and an Arbor Day observance and proclamation. The City of Farmington meets the above qualifications and is requesting authorization to apply for 2023 Tree City USA recertification. A copy of the online application form is attached. BUDGET IMPACT: N/A ACTION REQUESTED: Approve the City of Farmington’s application for 2023 Tree City recertification. ATTACHMENTS: Tree City USA Application FINAL Tree City Tree Ordinance 2023 Arbor Day (signed) Page 138 of 229 Page 139 of 229 Page 140 of 229 Page 141 of 229 Page 142 of 229 Page 143 of 229 Page 144 of 229 Page 145 of 229 2023 Tr ee City USA Application for Ce r ti fi c ati on The Tree City USA award is in recognition of work completed by the community during the 2023 calendar year. PRIMARY CONTACT IN FORMATION Contact Name: Edward Rutledge Email: erutledge@farmingtonmn.gov Phone: +1(651)280-6842 Address: 430 Third st Farmington, Minnesota 55024 Farm ington COMMUN ITY IN FORMATION Select which best describes your community: Community has a Department Chair or City Manager Ordinance Date: 04/01/2019 Ordinance Uploaded Per-capita Expenditure $17.34 Arbor Day Date 04/26/2023 Arbor Day Proclamation Uploaded As M ayor or Equivale nt of the Community of F ar mi ngton Mayor or Equivalent Signature Title Date Appli c ati on Ce r tific ation (to be Compl ete d by the State F or ester ) The above-named community has made formal application to this office. I am pleased to advise you that we reviewed the application and have concluded that, based on the information contained herein, said community is eligible to be certified as a Tree City USA community, for the 2023 calendar year, having in my opinion met the standards required for recognition. State Forester Signature Title Date F arm ington T ree C ity USA 2023 Page 146 of 229 7-6-1: PURPOSE AND INTENT: The purpose and intent of this chapter is to promote the health and protection of trees within the City. (Ord. 019-745, 4-1-2019) 7-6-2: DEFINITIONS: HAZARDOUS TREE: Any tree in which has structural defects in the roots, stem, or branches that may cause the tree or tree part to fail, and such failure may cause property damage or personal injury. NUISANCE TREE: The following shall constitute a public nuisance at the recommendation of the tree inspector: Elm trees (trees of genus Ulmus) infected with the fungus known as the Dutch elm disease (Ophiostoma ulmi) or which harbors any of the elm bark beetles Scolytus multistriatus or Hylurgopinus rufipes; Red oak tree (trees of genus Quercus) or part thereof infected to any degree with the oak wilt fungus (Ceratocystis fagacearum); Ash tree, or any part thereof, harboring or infested with emerald ash borer beetles or larvae or eggs thereof (Agrilus planipennis); Any dead elm, red oak or ash tree or part thereof, including logs, branches, stumps, firewood or other elm, oak or ash tree material from which the bark has not been removed or sprayed with an effective elm bark beetle insecticide, oak wilt fungus deterrent or emerald ash borer insecticide. PRIVATE TREE: Any tree planted on private property within the City, planted without permission on City property, or within easements. Private trees are owned and maintained by the property owner. The City may remove any tree on public property or within an easement as needed to complete work. PUBLIC TREE: A tree in which is planted on City property by an employee of the City or designated person. Also includes trees accepted as a donation from private residents to be planted on City property. Public trees are owned and maintained by the City. Any tree found planted on public property that was not planted by the City or accepted as a donation will not be maintained by the City. (Ord. 019-745, 4-1-2019) 7-6-3: ENFORCING OFFICER: The tree inspector shall perform the duties set forth in this chapter and shall enforce the provisions of this chapter. He may have such assistance as the City Council shall from time to time provide for. (Ord. 019-745, 4-1-2019) Page 147 of 229 7-6-4: TREE MAINTENANCE: The natural resources program is designed to prescribe various levels of maintenance to City boulevard trees located within City boulevards. (A) Planting Requirements: The City will review all planting of trees and shrubs within "City boulevards", defined as the area between property lines on either side of all streets, avenues, or ways within the City. (B) Replacement Of Trees: 1. The City shall be responsible for removing existing boulevard trees that have died, are dying, or sustained severe damage. The City shall replace trees on designated boulevard tree routes as requested by the property owner and where deemed feasible by the tree inspector. 2. The owner of any lot of record may, at his or her own risk, replace a dead boulevard tree in the front yard of the home outside of side yard drainage and utility easements at eight feet (8') from the property line in front yard drainage and utility easements. (C) Trimming Requirements: The City will be responsible for all trimming of boulevard trees. As these trees are on City property, and are essentially and legally City property, they must be maintained by the City to ensure that they are properly trimmed for structural integrity and disease control measures. (D) Responsibility For Maintenance Of Trees: 1. The City will inspect and trim public trees, excluding passive park and natural areas. 2. The homeowner shall be responsible for trimming lot frontage trees or any other trees on private property or planted by the homeowner. (E) Height Standards: Trimming height standards must maintain a ten foot (10') clearance above any walkway and fourteen feet (14') above the roadway. These requirements provide clearance for walkers, snow removal equipment and solid waste vehicles. (F) Brush From Pruning: The City will not collect any brush resulting from pruning or removal of trees or brush from private property. (G) Emergency Collection Of Brush: An emergency brush situation would occur when the public safety officer declares one to exist. Then and only then will the City collect brush generated by residents on private property, as a onetime emergency service. (H) Tree Topping: It shall be unlawful as a normal practice for any person to top any street tree, park tree or other tree on public property except as allowed in section 8-6-10 of this Code. "Topping" is defined as the severe cutting back of limbs to stubs larger than three inches (3") in diameter within the tree's crown to such a degree so as to remove the normal canopy and disfigure the tree. Trees severely damaged by storms or other causes, or Page 148 of 229 certain trees under utility wires or other obstructions where other pruning practices are impractical may be exempted from this subsection at the determination of the Natural Resources Division. (I) Pruning, Corner Clearance: Prune branches so that such branches shall not obstruct the view of any street intersection and so that there shall be a clear space (subsection E of this section) above the surface of the street or sidewalk. Said owners shall remove all dead, diseased or dangerous trees, or broken or decayed limbs that constitute a menace to the safety of the public. The City shall have the right to prune any tree or shrub on private property when it interferes with the proper spread of light along the street from a streetlight or interferes with visibility of any traffic control device or sign. (Ord. 019-745, 4-1-2019) 10-6-10: LANDSCAPING: (A) Purpose: The purpose of this landscaping regulation is: 1. To provide vegetation to enhance the architecture of structures and soften and enhance the visual impact of buildings and paved areas. 2. To minimize environmental effects of a development on a particular site and surrounding area by providing shade, erosion control, air purification, groundwater recharge, oxygen regeneration and noise, glare, and heat abatement. 3. To protect and preserve the appearance, character, and value of property and thereby promote the general welfare of the city. 4. To buffer conflicting land uses and enhance the quality and appearance of the entire site. (B) Landscape Plan Requirements: Plans for required landscaping in the B-1, B-2, B-3, SSMU, MUCI, MUCR, and I districts and for multi-family dwellings shall be submitted to the planner for approval before any permits are issued. The plan shall be based on accurate final site plans and consist of a planting plan and exterior lighting plan. A registered landscape architect, registered architect, certified arborist, horticulturist or landscape designer shall prepare the plan. (C) Landscape Plan Contents: A landscape plan shall include the following information: 1. North point and graphic scale, not less than one inch (1") to one hundred feet (100'). 2. The name of the project; developer; owner; and the person who prepared the plan, with their professional designation; and the date and revision dates of the plan. 3. Accurate final grades at two foot (2') contour intervals. 4. The location and dimensions of all existing and proposed structures, parking lots and drives, curbs, sidewalks, refuse disposal areas, fences, storm drainage systems, freestanding electrical equipment, recreational facilities and other freestanding structural features as determined necessary by the city. Page 149 of 229 5. The location, size, and type of all overhead, at grade, and underground utilities and structures with proper notation, where appropriate, as to any safety hazards to avoid during landscape installation. 6. The location, type, sizes and quantity of all proposed landscape materials shall be delineated on the plan. Proposed plant material shall be shown at maturity and called out on plan by common name or appropriate key. 7. All plans shall be accompanied by a list or schedule of proposed landscape material, including common and botanical name, the quantity of proposed plants and trees, their height, caliper or gallon size and any requirements during installation. 8. Location of hose connections and other watering sources including the location of irrigation systems. 9. Any existing vegetation proposed to be saved shall be identified by name, quantity and size. Methods of protecting the vegetation must be illustrated and explained. Any existing trees, twelve inch (12") diameter or larger measured at four and one-half feet (41/2') above ground that are proposed for removal, must be included on the plan. 10. Water permeability test results are required to be shown on the landscape plan. See subsection (E)2 of this section for testing techniques. (D) General Landscaping: 1. Landscaping Required: All areas not covered by buildings, paved areas, or other acceptable improvements shall be finish graded and installed with turf grass or other acceptable plant material. Any outdoor storage area shall be surfaced to control dust. 2. Developed Uses: In all residential, business and industrial districts, except in B-2, developed uses shall provide a landscaped yard along all public streets. This yard shall be free from structures, storage and off street parking, except for driveways, and shall be at least ten feet (10') in depth. 3. Business Uses: Where lots or parcels in any nonresidential zoning district are within one hundred feet (100') of a residential zoning district (R-1, R-2, R-3, and R-5) a landscaped yard ten feet (10') in width shall be installed; the required one hundred percent (100%) screening (plant material, fence, etc.), as described in Sec. 10-6-9, shall be installed within the landscaped yard. 4. Industrial Uses: (a) Where lots or parcels in any nonresidential zoning district are within one hundred feet (100') of a residential zoning district (R-1. R-2. R-3. and R-5) a landscaped yard twenty-five feet (25') in width shall be installed; the required one hundred percent (100%) screening (plant material, fence, etc.). as described in Sec. 10-6-9. shall be installed within the landscaped yard. (b) All open spaces shall be dustproofed. surfaced, landscaped, rockscaped or devoted to lawns. Page 150 of 229 (c) Not less than two-thirds (2/3) of the reguired building setback area from any dedicated street shall be landscaped with lawns, trees, shrubs and walkways. (d) Landscaping shall be installed within ninety (90) days of occupancy or substantial completion of building, whichever occurs first, weather permitting. 5. High Density: High density residential developments which range from seven (7) and sixty (60) units per acre shall include at least twenty percent (20%) of the parcel as landscaped open space and ten percent (10%) of the parcel must be developed for private recreation and/or common open space. 6. New Construction: New business construction in the B-1 limited business district shall maintain a minimum of ten percent (10%) of the site area as landscaped open space devoted to pedestrian use. 7. Off Street Parking: Any off street parking lot containing more than six (6) parking spaces shall be landscaped along the perimeter of the parking lot as follows: (a) Number of Plant Materials: One tree and three (3) shrubs for every forty feet (40') of parking lot perimeter installed as close to forty feet (40') as possible along the parking lot frontage, allowing for utilities and intersection visibility requirements, in order to shade and enhance the appearance of the parking lot. Shrub plantings should be planted in groups of three (3) or more and installed to visually buffer the parking lot and roadway. (b) Minimum Landscape Area: A continuous nonpaved area at least ten feet (10') in width, shall be located between the edge of the parking lot and the property line. (c) Plant Species: Large canopy trees should be installed to provide shade for parking spaces. Evergreen trees should be used to screen parking lots and interior roadways. Visual buffers shall be a maximum of three feet (3') in height at maturity. No plant material or berm may be located so as to obstruct the sight distance of motorists entering or leaving the site. 8. Parking Lots: Any parking lot containing more than twenty (20) parking spaces shall provide landscaping as follows: (a) Number of Plant Materials: A minimum of one tree and three (3) shrubs for every twenty (20) parking spaces is required. Each interior island shall have at least one canopy tree that does not impede vehicular visibility. (b) Location of Interior Islands: A minimum of one interior planting island for every twenty (20) parking spaces is required and shall be dispersed throughout the parking lot with the final layout design subject to review by the community development department. (c) Interior Planting Island: The planting island shall have a minimum width of eight feet (8'), a maximum length of sixteen feet (16'), and a minimum area of one hundred twenty eight (128) square feet. A minimum of seventy percent (70%) of every interior planting island shall be planted with live plant material, such as trees, shrubs, ground cover, or turf grass. The shrubs and ground cover shall be a maximum height of three feet Page 151 of 229 (3') at maturity. The remaining area of the interior planting island shall be covered with an organic mulch. (d) Location of Conduits: In cases where lighting conduits are installed within the interior planting islands, the conduits shall be located along the edge of the curb and not through the middle of the island in order to allow for the installation of plant material. (e) End Islands of Parking Aisles: The end islands of all parking aisles and corners must be a minimum width of eight feet (8') and a maximum length of sixteen feet (16') for a single parking aisle or thirty two feet (32') for double parking aisles. The end islands shall be landscaped as required above. (f) Concrete Curbing: Concrete curbing is required for parking islands within the parking lot area. (g) Suggested Location of Interior Islands for Safety: Parking lots shall be designed to promote safety for automobile drivers and pedestrians. In designing parking spaces, the driving aisles should be aligned toward the major destination as permitted by topography. This allows for pedestrian traffic to move through the aisles instead of crossing parking bays. One solution to quality parking is to locate a planting island between parked cars and install a sidewalk for easy access to the major destination as permitted by topography. Plantings may be located along the sidewalk to promote an aesthetic approach toward the building. (E) Planting Requirements: 1. Specifications: The minimum planting sizes for all plant material is the following: (a) Evergreen trees: Six feet (6') in height as specified by the American Association of Nurserymen, except for the true dwarf varieties. (b) Ground cover plants: Crowns, plugs, containers, in a number as appropriate by species to provide fifty percent (50%) surface coverage after one growing season. The species must provide seventy five percent (75%) to one hundred percent (100%) surface coverage after two (2) growing seasons. (c) Medium and large deciduous shade trees: Two inch (2") caliper, as measured six inches (6") above the ground as specified by the American Association Of Nurserymen. (d) Shrubs (deciduous and evergreen, including spreader and globe tree forms): Twelve inches (12") to eighteen inches (18") in height. (e) Small deciduous or ornamental trees: Minimum caliper of one and one-half inches (11/2") as specified by the American Association of Nurserymen, except for the true dwarf varieties. (f) Sod: As required to provide coverage and soil stabilization. Sod is required in the street side yard or front yard and seeding may be planted within other areas of the yard. Page 152 of 229 (g) Turf and native grass: Seeding as appropriate to provide complete coverage within the first growing season. 2. Soil Specifications: The landscape plan must contain results of a water permeability test. A water permeability test is required in order to determine the type of soil the plant material is planted in. This requires a sharp shooter spade dug eighteen inches (18") into the ground. Fill the hole with water and if after eighteen (18) hours the hole still retains the water, the soil is determined to be too poor for planting. 3. Poor Soil Remedies: If the soil is determined to be too poor for planting, the following two (2) possible remedies are recommended. The first remedy is to install a ten foot (10') wide raised planting bed in order to provide acceptable planting soil. The height of the bed is the amount of soil it takes to cover the root ball of the plant to a level of two inches (2") above the ball. The bed must be covered with four inches (4") of mulch to provide for moisture retention. A second remedy is to excavate the soil to the depth of the root ball, allowing the root ball to rest on the clay soil. Excavate an area five (5) times the size of the root ball and replace the soil with quality planting soil. This will allow the tree roots to spread into adequate soil and provide an established root system before spreading into the poorer soil. (F) Lot Frontage Tree and Boulevard Tree Species: 1. Prohibited Species: (a) In no cases shall prohibited species be planted as boulevard trees. Prohibited species are defined as the following trees: Ash species Box elder Evergreens Ginkgo (female only) Nondisease resistant elm species Nonhybrid cottonwood species Silver maple (b) In no cases shall prohibited species be planted as lot frontage trees. Prohibited species are defined as the following trees: Ash species Box elder Nondisease resistant elm species Nonhybrid cottonwood species Page 153 of 229 Silver maple 2. Landscape Plan: Developers of new developments must submit a landscape plan to the planning division. The planning division will be responsible for approving appropriate lot frontage and boulevard tree plantings. The lot frontage trees are required in the front yards of lots in new developments. Boulevard trees in new developments shall only be installed on city approved boulevard tree routes. The only exception would be if an agreement is made with a homeowners' association or other such organization where the responsibility to maintain the trees is that of the named organization in perpetuity. (a) Spacing for Lot Frontage and Boulevard Trees: (1) Lot frontage trees in new developments shall be installed on private property in the front yard at a minimum spacing of one tree for every forty feet (40') of lot frontage or one tree per lot if forty feet (40') is not feasible. The developer is responsible for installing the lot frontage trees per the landscape plan as required by the development contract. Special planting designs for lot frontage trees need to be approved by the planning division. (2) Boulevard trees in new developments shall be located on city approved boulevard tree routes and be installed at a minimum spacing of one tree for every forty feet (40') of boulevard frontage or one tree per boulevard frontage if forty feet (40') is not feasible. The developer is responsible for installing the boulevard trees per the landscape plan as required by the development contract. (b) Location for Lot Frontage and Boulevard Trees: (1) Lot frontage trees in new developments shall be planted by the developer per the development contract on private property eight feet (8') from the front property line and shall be installed in a parallel line to the front lot line. (2) Boulevard trees in new developments shall be planted by the developer per the development contract on city approved boulevard tree routes in the center of the city boulevard width between the property line and curb or the sidewalk and curb. The distance trees may be planted from curbs, sidewalks, trails, or pavement shall be no closer than four feet (4'). (c) Distance from Street Corners and Fire Hydrants: No lot frontage tree, boulevard tree, replacement tree, landscape material or fences shall be located within the triangle of visibility, which is the area within a triangle created by measuring from a point on the curb or edge of the street closest to the center of the intersection, down the front curb lines or edge or intersecting streets thirty feet (30'), and connecting their end points with a straight line. No lot frontage tree, boulevard tree, or replacement tree shall be planted closer than ten feet (10') from any fire hydrant. (d) Utilities: No lot frontage tree, boulevard tree, or replacement tree may be planted within ten (10) lateral feet of any underground water line or sewer line (sanitary or storm) and two feet (2') from any other underground utility. Gopher State One shall be called to request locations of utilities. Page 154 of 229 (G) Tree Maintenance: 1. The natural resources program is designed to prescribe various levels of maintenance to city boulevard trees located within city boulevards. (a) Planting Requirements: The natural resources division will review all planting of trees and shrubs within "city boulevards", defined as the area between property lines on either side of all streets, avenues, or ways within the city. (b) Replacement of Trees: (1) The city shall be responsible for removing existing boulevard trees that have died, are dying, or sustained severe damage. The city shall replace trees on designated boulevard tree routes. (2) The owner of any lot of record may, at his or her own risk, replace a dead boulevard tree in the front yard of the home outside of side yard drainage and utility easements at eight feet (8') from the property line in front yard drainage and utility easements. (c) Trimming Requirements: The city will be responsible for all trimming of boulevard trees. As these trees are on city property, and are essentially and legally city property, they must be maintained by the city to ensure that they are properly trimmed for structural integrity and disease control measures. (d) Responsibility for Maintenance of Trees: (1) The city will inspect and trim boulevard trees. (2) The homeowner shall be responsible for trimming lot frontage trees or any other trees on private property. (e) Height Standards: Trimming height standards must maintain a ten foot (10') clearance above any walkway and fourteen feet (14') above the roadway. These requirements provide clearance for walkers, snow removal equipment and solid waste vehicles. (f) Brush from Pruning: The city will not collect any brush resulting from pruning or removal of trees or brush from private property. (g) Emergency Collection of Brush: An emergency brush situation would occur when the public safety officer declares one to exist. Then and only then will the city collect brush generated by residents on private property, as a onetime emergency service. (H) Tree Topping: 1. It shall be unlawful as a normal practice for any person to top any street tree, park tree or other tree on public property except as allowed in section 8-6-10 of this code. "Topping" is defined as the severe cutting back of limbs to stubs larger than three inches (3") in diameter within the tree's crown to such a degree so as to remove the normal canopy and disfigure the tree. Trees severely damaged by storms or other causes, or Page 155 of 229 certain trees under utility wires or other obstructions where other pruning practices are impractical may be exempted from this subsection at the determination of the natural resources division. (I) Pruning, Corner Clearance: 1. Prune branches so that such branches shall not obstruct the view of any street intersection and so that there shall be a clear space of ten feet (10') above the surface of the street or sidewalk. Said owners shall remove all dead, diseased or dangerous trees, or broken or decayed limbs that constitute a menace to the safety of the public. The city shall have the right to prune any tree or shrub on private property when it interferes with the proper spread of light along the street from a streetlight or interferes with visibility of any traffic control device or sign. (J) Dead or Diseased Tree Removal on Private Property: 1. The city shall have the right to cause the removal of any dead or diseased trees on private property within the city in accordance with title 7, chapter 6 of this code when such trees constitute a hazard to life and property, or harbor insects or disease which constitute a potential threat to other trees in the city. The natural resources division will notify, in writing, the owners of such trees. Removal shall be done by said owners at their own expense within sixty (60) days after the date of service of notice. In the event of failure of owners to comply with such provisions, the city shall have the authority to remove such trees and charge the cost of removal on the owners' property tax notices. (K) Removal of Stumps: 1. All stumps of street and park trees shall be removed below the surface of the ground so that the top of the stump shall not project above the surface of the ground. (L) Tree Protection in Construction Zones: 1. Specifications: Existing trees and vegetation that are to be saved shall be protected from all construction activities, including earthwork operations, movement and storage of equipment, and materials and dumping of toxic materials. A minimum protection zone shall be established by the installation of temporary fencing around existing vegetation to be preserved, placing the fencing no closer to the trees than their drip lines, and this information shown and noted on the plans. Protective fencing shall be maintained throughout the construction period. Alternative protection measures may be approved by the zoning officer. Construction details which indicate special techniques that will be employed to save trees are required for all existing trees for which credit is desired. Existing trees will be counted as fulfilling the landscaping requirements of this section. Trees counted shall be all existing deciduous trees with a trunk size of four inches (4") or larger, measured at four and one-half feet (41/2') above the ground and all existing evergreen trees measuring five (5) vertical feet or more in height. 2. Replacement: If any of the trees required to be retained or trees planted as part of the landscaping plan should die within a period of two (2) years after completion of the activities associated with construction of the site, the owner of the property must replace Page 156 of 229 the trees within six (6) months at a ratio of one to one (1:1) with an approved tree having a minimum diameter of two inches (2") measured at a point six inches (6") above the natural grade. Shrubbery or other plantings which die within two (2) years of completion of the activities shall be replaced in kind within six (6) months. (M) Overhead Utility Line Planting Requirements: 1. Location: Overhead utility lines must be located on the landscape plan. In order to allow for maintenance of the lines, if an overhead utility line is located in the rear yard along the property line, the buffer plantings required in the buffer yard shall be installed following guidelines set below. If the overhead utility line is located in the rear yard, but five feet (5') to ten feet (10') from the property line, the screening and buffer yard plantings shall be installed along the property line with city staff approval. 2. Species: The following guidelines must be considered when planting near overhead utility lines. Considerations should be given to soil conditions, drainage, exposure, growth patterns, and local experience when selecting plant materials. Type Height Where Planted Shrubs Maximum of 15 feet Under overhead lines Small trees Over 15 feet, but under 30 feet At least 15 feet from overhead utility lines Medium trees 30 - 70 feet At least 35 feet from overhead utility lines Large trees Over 70 feet At least 45 feet from overhead utility lines (N) Landscape Guarantee: 1. Guarantee: All new plantings shall be guaranteed for two (2) full years from the time planting has been completed. Plants not alive at the end of the guarantee period shall be replaced. 2. Surety: Prior to approval of the landscape plan, the applicant shall submit surety acceptable to the city administrator in the amount of the established costs of complying with the plan. The aforesaid surety shall be provided for guaranteeing completion and compliance with the plan. Page 157 of 229 3. Completion or Bond: A certificate of occupancy shall not be issued until either the landscaping is completed or a bond has been filed. (Ord. 016-716, 9-6-2016; amd. Ord. 021-761, 8-16-2021) 10-6-11: WOODLAND AND TREE PRESERVATION: (A) Intent: It is the intent of the city of Farmington to protect, preserve and enhance the natural environment of Farmington, to encourage a resourceful and prudent approach to the development of wooded areas, and to retain, as far as practicable, substantial existing tree cover. The city recognizes the value of trees and woodlands for improving air quality, protection against wind and water erosion, shade, energy conservation, wildlife habitat, scenic beauty, and protecting the integrity of the natural environment. (B) Definitions: Unless specifically defined below, words or phrases used in this section shall be interpreted so as to give them the same meaning as they have in common usage and to give this section its most reasonable application. COMMON TREE: Includes ash, aspen, box elder, cottonwood, elm, hackberry, locust, poplar, silver maple, willow, and any other tree species not defined as a "hardwood deciduous tree" or a "coniferous/evergreen tree". CONIFEROUS/EVERGREEN TREE: A woody plant, which, at maturity, is at least twelve feet (12') or more in height and has foliage on the outermost portion of the branches year round. Tamaracks (larch) are included as a coniferous tree species. CONSTRUCTION ACTIVITY: A disturbance to the land that results in a change in the topography, existing soil cover (both vegetated and nonvegetated), or the existing soil topography that may result in accelerated stormwater runoff, leading to soil erosion and movement of sediment into surface waters or drainage systems. Examples of construction activity may include clearing, grading, filling, excavating, building construction and landscaping. CONSTRUCTION DAMAGE: Any action such as filling, scraping, trenching or compacting the soil around trees or wounding trees in such a manner that it may result in the eventual death of the tree. CRITICAL ROOT ZONE: An imaginary circle surrounding the tree trunk with a radius distance of one foot (1') per one inch (1") of tree diameter, e.g., a twenty inch (20") diameter tree has a critical root zone with a radius of twenty feet (20'). DECIDUOUS TREE: A woody plant which, at maturity, is at least fifteen feet (15') or more in height, has a defined crown, and sheds leaves annually. DIAMETER: The diameter of the main stem of the tree at a point four and one-half feet (4.5') above the ground. DRIP LINE: The farthest distance away from the trunk of a tree that rain or dew will fall directly to the ground from the leaves or the branches of the tree. Page 158 of 229 HARDWOOD DECIDUOUS TREE: Includes birch, basswood, black cherry, catalpa, hickory, ironwood, hard maples, oak and walnut. INVASIVE TREE SPECIES: A tree species that is nonnative to the ecosystem and whose introduction causes economic or environmental harm. Invasive tree species include, but are not limited to, common buckthorn (Rhamnus cathartica), glossy buckthorn (Rhamnus frangula), tartarian honeysuckle (Lonicera tatarica), amur maple (Acer ginnala), and Siberian elm (Ulmus pumila). LANDSCAPING: Plantings such as trees, grass and shrubs. NUISANCE TREE: 1. Any living or standing tree or part thereof infected to any degree with a shade tree disease or shade tree pest. 2. Any logs, stumps, branches, firewood, or other part of dead or dying tree(s) infected with a shade tree disease or shade tree pest unless properly treated under the direction of the city forester-tree inspector. 3. Any standing dead trees or limbs which may threaten human health or property. SHADE TREE DISEASE: Includes Dutch elm disease (Ophiostoma ulmi), oak wilt (Ceratocystis fagacearum), or any other tree disease of epidemic nature. SHADE TREE PEST: Includes emerald ash borer (Agrilus planipenis), European elm bark beetle (Scolytus multistrialus), native elm bark beetle (Hylurgopinus rufipes) or any other shade tree pest with potential to cause widespread damage. SIGNIFICANT TREE: A healthy tree measuring a minimum of six inches (6") in diameter for hardwood deciduous trees, eight inches (8") in diameter for coniferous/evergreen trees, or twelve inches (12") in diameter for common trees, as defined in this section. SIGNIFICANT WOODLAND: A treed area of at least fifteen thousand (15,000) square feet or more which includes significant trees. SPECIMEN TREE: A healthy hardwood deciduous tree measuring equal to or greater than thirty inches (30") in diameter. WOODLAND PRESERVATION PLAN: A plan prepared by a certified forester or landscape architect that clearly shows which trees on a site are to be preserved, and what measures will be taken to preserve them. The plan will also include calculations to determine the number of replacement trees required. (C) Applicability: 1. Woodland Preservation Plan: A woodland preservation plan shall be submitted to and approved by the city, and implemented in accord with the plan in connection with any of the following: (a) New development in any zoning district. (b) New building construction in any zoning district. Page 159 of 229 (c) Expansion of any existing commercial, industrial or institutional building where an approved tree preservation plan is not on file with the city. (d) Any project for which a city land disturbance permit is required. (e) Any landscape plan as required by section 10-6-10 of this chapter when significant trees or significant woodlands exist in the proposed construction zone. 2. Woodland Preservation Plan Requirements: The woodland preservation plan shall reflect the developer's best effort to determine the most feasible and practical layout of buildings, parking lots, driveways, streets, storage and other physical features, so that the fewest significant trees and/or smallest area of significant woodland are destroyed or damaged. The woodland preservation plan shall be a separate plan sheet(s) that include the following information: (a) The name and address of the applicant, and status of the applicant with respect to the land. (b) The name, telephone number(s) and address of the person responsible for tree preservation during the course of the development project. (c) Written consent of the owner of the land, if the applicant is not the owner. (d) Location of the property, including a street address and legal description. (e) Boundary lines of the property with accurate dimensions as established by survey. (f) Location of all existing and proposed structures, roads, utilities and driveways on the site. (g) A tree inventory, indicating the size, species, general health, and location of all existing significant trees, specimen trees and significant woodlands located within the area to be developed or within the parcel of record. All significant trees and specimen trees must be tagged in the field for reference on the tree preservation plan. These significant trees should be identified on the plan sheet in both graphic and tabular form. (h) Trees that were planted as part of a commercial business such as a tree farm or nursery do not need to be inventoried on an individual basis. A general description of the trees and an outer boundary of the planted area must be provided. The burden of proof shall be on the applicant to provide evidence to support the finding that the trees were planted as part of a commercial business. (i) A listing of the total diameter inches of healthy significant trees inventoried in subsection (C)2(g) of this section. Dead, diseased or dying trees and invasive tree species do not need to be included in the totals. (j) A listing of the total diameter inches of healthy significant trees proposed to be removed, total diameter inches of healthy hardwood deciduous trees to be removed, total Page 160 of 229 diameter inches of healthy coniferous/evergreen trees to be removed, and total diameter inches of common trees to be removed. (k) Outer boundaries and areas (acres) of all contiguous wooded areas or significant woodlands, with a general description of the natural community type or predominant canopy tree species not meeting the significant tree size threshold. (l) Locations of the proposed buildings, structures, or impervious surfaces. (m) Delineation of all areas to be graded and limits of land disturbance, showing one foot (1') or two foot (2') contour intervals. (n) Measures proposed to be implemented to protect significant trees and specimen trees, including required protective measures and any additional protective measures as identified in this section. (o) Size, species, number and location of all replacement trees or woodlands to be planted on the property in accord with the tree replacement schedule. Replacement trees or woodlands shall not include invasive tree species. (p) Signature and qualifications of the person(s) preparing the plan. The plan shall be certified by a forester, ecologist, landscape architect or other qualified professional retained by the applicant. 3. Submission Requirements: The woodland preservation plan shall be submitted with any preliminary plat plan, site plan or landscape plan, as required by the regulations of this code; or incorporated as part of a grading plan and application for any grading permit as required by this code. 4. Implementation: All sites shall be staked, as depicted in the approved tree preservation plan, and the required tree protection fencing shall be installed before land disturbance is to commence. The city shall inspect the construction site prior to the beginning of the land disturbance to ensure that protective fencing and other protective measures are in place. No encroachment, land disturbance, trenching, filling, compaction or change in soil chemistry shall occur within the fenced areas protecting the critical root zone of the trees to be saved. 5. Allowable Tree Removal: Up to thirty percent (30%) of the diameter inches of significant trees on any parcel of land being developed may be removed without replacement requirements. Replacement according to the tree replacement schedule is required when removal exceeds more than thirty percent (30%) of the total significant tree diameter inches. The following types of trees do not need to be included as part of the tally of tree removals: (a) Dead, diseased, or dying trees. (b) Trees that are transplanted from the site to another appropriate area within the city. Page 161 of 229 (c) Trees that were planted as part of a commercial business such as a tree farm or nursery. (d) Invasive tree species. 6. Mitigation: In any development where the allowable tree removal is exceeded, the applicant shall mitigate the tree loss by: (a) Planting replacement trees in appropriate areas within the development in accordance with the tree replacement schedule; or (b) Planting replacement trees on city property under the direction of the parks and recreation director or natural resource specialist; or (c) Paying the city the fee set forth in the fee schedule adopted by city council by ordinance. The payment shall be deposited into an account designated specifically for tree planting. 7. Tree Replacement Calculations: Thirty percent (30%) of the total diameter inches of significant trees on the site may be removed without replacement. The allowable thirty percent (30%) removal is first credited to the common trees removed, then the conifers, and lastly the hardwood species. The following calculation procedure must be used to determine tree placement requirements: (a) Calculate thirty percent (30%) of the total diameter inches of significant trees on the site. This is the allowable tree removal limit, or the number of inches that can be removed without replacement. (b) Subtract the total diameter inches of common tree species that will be removed from the allowable limit. (c) If there are any allowable inches left, subtract the total diameter inches of coniferous/evergreen tree species that will be removed from the remaining allowable inches. (d) If there are any allowable inches left, subtract the total diameter inches of hardwood deciduous tree species that will be removed from the remaining allowable inches. If at any point in the above calculation procedure the number of inches to be removed exceeds the thirty percent (30%) allowable removal limit, the remaining inches of removal above the allowable limit must be replaced according to the tree replacement schedule in subsection (C)8 of this section. 8. Tree Replacement Schedule: Tree removals over the allowable tree removal limit on the parcel shall be replaced according to the following schedule: Page 162 of 229 (a) Common tree species shall be replaced with new trees, at a rate of one-eighth (1/8) the diameter inches lost (i.e., 1 inch diameter of replacement trees for each 8 inches of tree diameter lost). Replacement trees must be a minimum of one inch (1") diameter. (b) Coniferous/evergreen species shall be replaced with new trees, coniferous or deciduous, at a rate of one-fourth (1/4) the diameter inches lost (i.e., 1 inch diameter of replacement trees for each 4 inches of tree diameter lost). Replacement trees must be a minimum of one inch (1") in diameter. Since coniferous species are often sold by height rather than diameter inch, the following conversion formula can be used: Height of replacement coniferous tree/2 = Diameter inches of credit (c) Hardwood deciduous tree species shall be replaced with new hardwood deciduous trees at a rate of one-half (1/2) the diameter inches lost (i.e., 1 inch diameter of replacement trees for each 2 inches of tree diameter lost). Replacement trees must be a minimum of one inch (1") in diameter. 9. Significant Woodland Replacement: All significant woodlands removed must be replaced by the applicant. The number of replacement trees shall be determined by either of the following methods. Either method of replacement may be used when the number of replacement trees required is equal, or the applicant shall utilize the method that yields the greater number of replacement trees: (a) Replacement of significant trees within the significant woodland that are damaged or destroyed, per the tree replacement schedule described in subsection (C)8 of this section. (b) Replacement for every one hundred twenty five (125) square feet of significant woodland damaged or destroyed, or increment thereof, with: (1) One deciduous tree of at least four (4) caliper inches or one coniferous tree at least twelve feet (12') tall; or (2) Two (2) deciduous trees of at least 2.5 caliper inches or two (2) coniferous trees at least six feet (6') tall; or (3) Four (4) deciduous trees of at least 1.5 caliper inches or four (4) coniferous trees at least four feet (4') tall. (c) Trees planted to replace significant woodlands must be arranged in stands to provide a habitat similar to the damaged or destroyed habitat. An appropriate native understory seed mix must be planted along with the replacement trees. 10. Species Requirement: The city must approve all species used for tree replacement. Ornamental trees are not acceptable for use as replacement trees. Where ten (10) or more replacement trees are required, not more than thirty percent (30%) of the replacement trees shall be of the same species. 11. Warranty Requirement: Any replacement tree which is not alive or healthy, as determined by the city, or which subsequently dies due to construction activity within two Page 163 of 229 (2) years after the date of project closure shall be removed by the applicant and replaced with a new healthy tree meeting the same minimum size requirements within eight (8) months of removal. 12. Performance Guarantee: The applicant shall provide the required performance guarantee following preliminary approval of the woodland preservation plan, and prior to any construction and/or grading. The amount of the performance guarantee shall be based on the city's fee schedule. 13. Required Protective Measures: The woodland preservation plan shall identify the measures to be utilized to protect significant trees. The following measures are required to be utilized to protect significant trees: (a) Installation of snow fencing or polyethylene laminate safety netting placed at the drip line or at the perimeter of the critical root zone, whichever is greater, of significant trees, specimen trees, and significant woodlands to be preserved. No grade change, construction activity, or storage of materials shall occur within this fenced area. (b) Identification of any oak trees requiring pruning between April 15 and July 1. Any oak trees so pruned shall be required to have any cut areas sealed with an appropriate nontoxic tree wound sealant. (c) Prevention of change in soil chemistry due to concrete washout and leakage or spillage of toxic materials, such as fuels or paints. (d) Removal of any nuisance trees located in the areas to be preserved. 14. Additional Protective Measures: The following measures to protect significant trees that are intended to be preserved according to the submitted tree preservation plan may be required by the city: (a) Installation of retaining walls or tree wells to preserve trees. (b) Placement of utilities in common trenches outside of the drip line of significant trees, or use of tunneled installation. (c) Use of tree root aeration, fertilization, and/or irrigation systems. (d) Therapeutic pruning. 15. Incentives For Woodland Protection: As an incentive to protect contiguous wooded areas, the city will allow the following: (a) Density Transfer: Density of units that would be allowed in a protected woodland area may be transferred to other areas of the development, in excess of the density limits of the underlying zoning district. In order for the density transfer to be approved, the protected woodland must be an easement dedicated to the city. (b) Unit Bonus: For each acre of wooded area preserved and dedicated to the city over and above the normal ten percent (10%) park land dedication, the developer will be allowed an additional unit above the original unit allocation. Page 164 of 229 (c) Tree Bank Areas: Developers that own parcels without trees may dedicate appropriate areas of their plats as "tree bank" areas. These areas would be available to accept trees planted as mitigation for tree removals from other sites. For each acre of "tree bank" area permanently dedicated to the city over and above the normal park land dedication, the developer will be allowed an additional unit above the original unit allocation. The dedication may include establishment of a fund for maintenance of the tree bank, based on the recommendation of the park and recreation director or the natural resource specialist. The areas proposed to be dedicated to a tree bank must be consistent with the city's comprehensive plan provisions for greenway opportunities, park plans, etc., or must be adjacent to or provide an enhancement to existing park facilities. Property dedicated must be usable upland (not wetlands, ponds or utility easements, etc.). The city retains the right to determine whether or not it will accept the property proposed to be dedicated for a tree bank. 16. Compliance With The Woodland Protection Plan: The applicant shall implement the woodland preservation plan prior to and during any construction. The woodland protection measures shall remain in place until all land disturbance and construction activity is terminated or until a request to remove the woodland and tree protection measures is made to, and approved by, the city. (a) No significant trees shall be removed until a woodland preservation plan is approved and except in accordance with the approved tree preservation plan as approved by the city. If a significant tree(s) intended to be preserved is removed without permission of the city or damaged so that it is in a state of decline within one year from the date of project closure, a cash mitigation, calculated per diameter inch of the removed/destroyed tree in the amount set forth in the city fee schedule, shall be remitted to the city. (b) The city shall have the right to inspect the development and/or building site in order to determine compliance with the approved woodland preservation plan. The city shall determine whether compliance with the woodland preservation plan has been met. 17. Existing Developed Commercial Properties: (a) Trees that are removed that were part of an approved landscape plan must be replaced in accordance with the original landscaping plan, unless city approval is obtained for an alternative landscape plan. (b) Trees that are removed that were part of a designated woodland preservation area must be replaced in accordance with the tree replacement requirements outlined in this section. The thirty percent (30%) allowable tree removal limit does not apply in these situations. 18. Exceptions: (a) Exception Standards: Notwithstanding the city's desire to accomplish the tree protection goals outlined in this section, there may be instances where these goals are in conflict with other city objectives. These conflicts are most likely to occur on small, heavily Page 165 of 229 wooded parcels. At the discretion of the city council, exceptions may be granted if all of the following conditions exist: (1) The subject parcel is five (5) acres in size or less. (2) It is not feasible to combine the subject parcel with adjacent parcels that could use the parcel as required green space. (3) Strict adherence to the requirements of this section would prevent reasonable development that is consistent with the comprehensive plan and desirable to the city on the parcel. (4) The exception requested is the minimum needed to accomplish the desired development. (b) Exception Provisions: If an exception is granted, relief from the requirements of this section may take the form of reduced mitigation requirements, greater allowable tree removal, higher thresholds for determining significant trees or any combination of the above. The city council will approve the form of relief that best balances the objectives of the city and tree preservation. (Ord. 011-634, 5-16-2011) Page 166 of 229 MO32“Kolamo_..38_.&<weE.atas83%32438%:aemaau?EEu3...{SE32.E38Ba82anE$53396:Haoam?gmmmzeusE.:BmEEb~mE£232pongmmhmmom32mo8:9:2:is.30Monamm.38.3E3.éauéesEEBEE838asmsas?o$02:88%:q?mommmameBozduéa2:BEmo?az??ooEoamou€235Bo:mootmoFanoEu>€aHowwagewas,mq.n§3.mEmoo:omz??mso?..m<HmHmw>>was50:3u?mkaboummoosuouwasu?mmsvbumu>o\&E«nmo3m>35905mooqmnuoauoo?onnm?aEmobd?om??o?uuo??smmomaobowxmoamonotE0262S??on<.m<HMHl>?canmm?uqon_?:oE:€._>:ocanb.:EEEooPcofwno?w£E>oaEaomegaEadiemm:25Eommobmbiowas$535hmommommvmoBomm?w2:wEN_EEmEEEo?m?208?mouombE:EEooma?awoe:moXEo?o?wwyouwagewasmqua?m€235canmmaoi??omamowdonaoowww?tombowasEonmwonba0%59¢uoommomctoam98mars?znoao?uomao?9»:S3owawnoEa?nomoSusan:o?wasaomaomm..3892E232PS35monthwasmmnowmmubo2%omsonqoowww?tommo~An—O.M®£Hdzunmmo?um2:80¢CODHNQwutopmwasma?a?BE?mnomwas“$2605@003nmonmaztommoEqonmouoouJSEEu.?:.=B.mw&§$58wasBani$355wasinSEEoE>oE.38mm25$“seammoEmmuourwwas5:33533caninwas.§5§._dw?smEODHNOEmma:22:Etonawn2825mm:35.mo_oo%o>wma>q._SeainE95?muuomm.Somo:E2wasmou?mBums053wascCo..mE6.52:0S?oaoou.502?mouowEamoobmoooamtom?moneBS30303b_SEonEo2:?omunnmzE23%moE>o.&>mQSpm<wasSmudgeBasic82635>“.5&3?o?obxo$50wasdo?mt?ooumwasohzmuom?oum?m?mao.momwom€wasE380¢opsmmoumuumm?o?c?oubmW?wo?DHNBmoaomwasmODH—m.EomoE£2.wO~Aww>DW?O~?gEamonUSP><nmomm<zo_._.<E<._uo.m._\pZO._.0Z=>_m_<u_u_O>._._U Page 167 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Kellee Omlid, Parks & Recreation Director Department: Parks & Recreation Subject: Playground Equipment for Rambling River Park Meeting: Regular Council - Dec 18 2023 INTRODUCTION: In September 2021, some of the playground equipment at Rambling River Park was removed due to failing playground safety inspections. Since then, there have been discussions about moving the playground equipment out of the usual flood area, installing new equipment, and making it an inclusive playground. An inclusive playground is a space where children and adults of all abilities can interact, play together, and have fun. DISCUSSION: City Council, at its March 6, 2023 meeting, approved an agreement with HKGi to update the master plan for Rambling River Park. The master plan process kicked-off in early April 2023 and at its August 21, 2023 meeting, City Council approved the new master plan for Rambling River Park. During the engagement phase of the master planning process, new playground equipment ranked as the second highest priority for implementation. The approved master plan replaces the current playground with new playground equipment outside the floodway. A new inclusive playground was identified to be constructed where the tennis courts are currently located. Staff collaborated with Webber Recreational Design, Inc., Hastings, Minnesota, to develop an inclusive and accessible playground manufactured by Miracle Recreation Equipment Company for Rambling River Park. There were site visits at Rambling River Park and in-person meetings to identify a variety of play components to ensure the equipment was accessible, exciting, fun, and challenging. The City currently has a few parks with Miracle playground equipment. future other downtown, to entry the park, and a is Park River Rambling As community improvements are planned, a destination and premier playground is recommended. The playground equipment and surface area should be both inclusive and accessible. Included in the packet is the proposed playground equipment and layout. The playground plan has separate 2 to 5 year and 5 to 12-year-old children structures and several freestanding play features. The proposed playground equipment contains play features that would be new to the park system including the inclusive whirl, cyclo rubber (PIP) poured-in-place a is surfacing and along. glide climber, plus cone The playground surface. This surfacing is ADA approved, slip-resistant, and porous. The Parks and Recreation Commission reviewed the playground equipment plan and colors of the PIP rubber surface at their December 13, 2023 meeting. The Commission chose tan with blue for the rubber surfacing and unanimously approved a recommendation to City Council to authorize Page 168 of 229 purchase and installation of the playground equipment and surfacing. Attached is the agreement which includes the quote for purchase and installation of the playground equipment and PIP rubber surface. BUDGET IMPACT: The Sourcewell contract price for the playground equipment, freight, site work, PIP rubber surface, and installation is $403,592. Funding of $398,192 will be through American Rescue Plan Act (ARPA) funds and the remaining $5,400 will be the donation Minnesota Energy Resources gave in January 2022 to purchase new playground equipment for Rambling River Park. ACTION REQUESTED: Approve the purchase of playground equipment and PIP rubber surface including installation from Webber Recreational Design, Inc. for Rambling River Park at a cost of $403,592. ATTACHMENTS: Rambling River Park Playground Equipment Plan Tan with Blue River Surfacing Agreement with Miracle Recreation Equipment Company for Playground Equipment Project for Rambling River Park Page 169 of 229 Pa g e 1 7 0 o f 2 2 9 AGREEMENT AGREEMENT made this _________ day of ___________________, 2023, between the CITY OF FARMINGTON, a Minnesota municipal corporation ("City"), and MIRACLE RECREATION EQUIPMENT COMPANY, INC., a Missouri limited liability corporation ("Contractor"). IN CONSIDERATION OF THE MUTUAL UNDERTAKINGS HEREIN CONTAINED, THE PARTIES AGREE AS FOLLOWS: 1. CONTRACT DOCUMENTS. The following documents shall be referred to as the "Contract Documents", all of which shall be taken together as a whole as the contract between the parties as if they were set verbatim and in full herein: A. This Agreement B. Contractor Proposal submitted on November 20, 2023, attached as Exhibit “A.” In the event of conflict among the provisions of the Contract Documents, the order in which they are listed above shall control in resolving any such conflicts with Contract Document "A" having the first priority and Contract Document "B" having the last priority. 2. OBLIGATIONS OF THE CONTRACTOR. The Contractor shall provide the goods, services, and perform the work in accordance with the Contract Documents and in compliance with federal, state, and local laws. 3. OBLIGATIONS OF THE CITY. The City shall pay the Contractor in accordance with the bid and inclusive of sales tax. 4. SOFTWARE LICENSE. If the equipment provided by the Contractor pursuant to this Contract contains software, including that which the manufacturer may have embedded into the hardware as an integral part of the equipment, the Contractor shall pay all software licensing fees. The Contractor shall also pay for all software updating fees for a period of one year following cutover. The Contractor shall have no obligation to pay for such fees thereafter. Nothing in the software license or licensing agreement shall obligate the City to p ay any additional fees as a condition for continuing to use the software. 5. ASSIGNMENT. Neither party may assign, sublet, or transfer any interest or obligation in this Contract without the prior written consent of the other party, and then only upon such terms and conditions as both parties may agree to and set forth in writing. 6. TIME OF PERFORMANCE. The Contractor shall complete its obligations for the project on or before July 15, 2024. Page 171 of 229 2 7. PAYMENT. a. When the obligations of the Contractor have been fulfilled, inspected, and accepted, the City shall pay the Contractor an amount not to exceed $403,592. Such payment shall be made not later than thirty (30) days after completion, certification thereof, and invoicing by the Contractor. b. No final payment shall be made under this Contract until Contractor has satisfactorily established compliance with the provisions of Minn. Stat. Section 290.92. A certificate of the commissioner shall satisfy this requirement with respect to the Contractor or any subcontractor. 8. CONTRACTOR’S REPRESENTATIONS. a. Contractor has examined and carefully studied the Contract Documents and other related data identified in the contract documents. b. Contractor has visited the site and become familiar with and is satisfied to the general, local, and Site conditions that may affect cost, progress, and performance of the work. c. Contractor is familiar with and is satisfied as to all federal, state, and local laws and regulations that may affect cost, progress, and performance of the work. d. Contractor has obtained and carefully studied (or assumes responsibility for doing so) all additional or supplementary examinations, investigations, explorations, tests, studies, and data concerning conditions at or contiguous to the site which may affect cost, progress, or performance of the work or which relate to any aspect of the means, methods, techniques, sequences, and procedures of construction to be employed by Contractor, including any specific means, methods, techniques, sequences, and procedures of construction expressly required by the Bidding Documents, and safety precautions and programs incident thereto. e. Contractor does not consider that any further examinations, investigations, explorations, tests, studies, or data are necessary for the performance of the work at the Contract price, within the time of performance, and in accordance with the other terms and conditions of the Contract Documents. f. Contractor has correlated the information known to Contractor, information and observations obtained from visits to the Site, reports and drawings identified in the Contract Documents, and all additional examinations, investigations, explorations, tests, studies, and data with the Contract Documents. g. The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the work. 9. EXTRA SERVICES. No claim will be honored for compensation for extra services or beyond the scope of this Agreement or the not-to-exceed price for the services identified in the Page 172 of 229 3 proposal without written submittal by the Contractor, and approval of an amendment by the City, with specific estimates of type, time, and maximum costs, prior to commencement of the work. 10. PROMPT PAYMENT TO SUBCONTRACTORS. Pursuant to Minnesota Statute 471.25, Subdivision 4a, the Contractor must pay any subcontractor within ten (10) days of the Contractor’s receipt of payment from the City for undisputed services provided by the subcontractor. The Contractor must pay interest of one and one-half percent (1½ %) per month or any part of a month to subcontractor on any undisputed amount not paid on time to the subcontractor. The minimum monthly interest penalty payment for an unpaid balance of $100.00 or more is $10.00. For an unpaid balance of less than $100.00, the Contractor shall pay the actual penalty due to the subcontractor. A subcontractor who prevails in a civil action to collect interest penalties from the Contractor shall be awarded its costs and disbursements, including attorney’s fees, incurred in bringing the action. 11. INSURANCE REQUIREMENTS. The Contractor, at is expense, shall procure and maintain in force for the duration of this Agreement the following minimum insurance coverages: a. General Liability. The Contractor agrees to maintain Commercial General Liability insurance in a minimum amount of $1,000,000 per occurrence; $2,000,000 annual aggregate. The policy shall cover liability arising from premises, operations, products-completed operations, personal injury, advertising injury, and contractually assumed liability. The City, including its elected and appointed officials, employees, and agents, shall be endorsed as additional insured. b. Automobile Liability. If the Contractor operates a motor vehicle in performing the Services under this Agreement, the Contractor shall maintain commercial automobile liability insurance, including owned, hired, and non-owned automobiles, with a minimum liability limit of $1,000,000, combined single limit. c. Workers’ Compensation. The Contractor agrees to provide Workers’ Compensation insurance for all its employees in accordance with the statutory requirements of the State of Minnesota. The Contractor shall also carry Employers’ Liability Coverage with minimum limits are as follows: • $500,000 – Bodily Injury by Disease per employee • $500,000 – Bodily Injury by Disease aggregate • $500,000 – Bodily Injury by Accident The Contractor shall, prior to commencing the Services, deliver to the City a Certificate of Insurance as evidence that the above coverages are in full force and effect. The insurance requirements may be met through any combination of primary and umbrella/excess insurance. The City must be named as an additional insured on any umbrella/excess policy. The Contractor’s policies shall be primary insurance and non-contributory to any other valid and collectible insurance available to the City with respect to any claim arising out of the Contractor’s performance under this Agreement. Page 173 of 229 4 The Contractor’s policies and Certificate of Insurance shall contain a provision that coverage afforded under the policies shall not be cancelled without at least thirty (30) days’ advanced written notice to the City, or ten (10) days’ written notice for nonpayment of premium. 12. MINNESOTA GOVERNMENT DATA PRACTICES ACT. Contractor must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to (1) all data provided by the City pursuant to this Agreement, and (2) all data, created, collected, received, stored, used, maintained, or disseminated by Contractor pursuant to this Agreement. Contractor is subject to all the provisions of the Minnesota Government Data Practices Act, including but not limited to the civil remedies of Minnesota Statutes Section 13.08, as if it were a government entity. In the event Contractor receives a request to release data, Contractor must immediately notify City. City will give Contractor instructions concerning the release of the data to the requesting party before the data is released. Contractor agrees to defend, indemnify, and hold City, its officials, officers, agents, employees, and volunteers harmless from any claims resulting from Contractor’s officers’, agents’, city’s, partners’, employees’, volunteers’, assignees’ or subcontractors’ unlawful disclosure and/or use of protected data. The terms of this paragraph shall survive the cancellation or termination of this Agreement. 13. RECORDS. Contractor shall maintain complete and accurate records of expenses involved in the performance of services. 14. WARRANTY. The Contractor guarantees that all new equipment warranties as specified within the bid shall be in full force and transferred to the City upon payment by the City. The Contractor shall be held responsible for any and all defects in workmanship, materials, and equipment which may develop in any part of the contracted service, and upon proper notification by the City shall immediately replace, without cost to the City, any such faulty part or parts and damage done by reason of the same in accordance with the bid specifications. The Contractor further warrants to the City that all goods and services furnished under the Contract will be in conformance with Contract Documents and that the goods are of merchantable quality and are fit for the use for which they are sold. This warranty is in addition to any manufacturer's standard warranty, and any warranty provided by law. 15. NONDISCRIMINATION. All Contractors and subcontractors employed shall comply with all applicable provisions of all federal, state and municipal laws which prohibit discrimination in employment to members of a protected class and all rules and regulations, promulgated and adopted pursuant thereto. The Contractor will include a similar provision in all subcontracts entered into for the performance of this contract. 16. INDEMNITY. The Contractor agrees to defend, hold harmless, and indemnify the City, its officers, agents, and employees, for and against any and all claims, demands, actions, or causes of action, of whatever nature or character, arising from the Consultant's performance of work or services provided for herein. The Contractor shall take all reasonable precautions for the safety of all its employees on the site and shall provide reasonable protection to prevent damage or loss to the property on the site or properties adjacent thereto and to work, materials and equipment under the Contractor’s control. Page 174 of 229 5 17. WAIVER. In the particular event that either party shall at any time or times waive any breach of this Contract by the other, such waiver shall not constitute a waiver of any other or any succeeding breach of this Contract by either party, whether of the same or any other covenant, condition, or obligation. 18. GOVERNING LAW. The laws of the State of Minnesota govern the interpretation of this Contract. 19. SEVERABILITY. If any provision, term, or condition of this Contract is found to be or become unenforceable or invalid, it shall not effect the remaining provisions, terms, and conditions of this Contract, unless such invalid or unenforceable provision, term, or condition renders this Contract impossible to perform. Such remaining terms and conditions of the Contract shall continue in full force and effect and shall continue to operate as the parties' entire contract. 20. ENTIRE AGREEMENT. This Contract represents the entire agreement of the parties and is a final, complete, and all-inclusive statement of the terms thereof, and supersedes and terminates any prior agreement(s), understandings, or written or verbal representations made between the parties with respect thereto. 21. TERMINATION. This Agreement may be terminated by the City for any reason or for convenience upon written notice to the Contractor. In the event of termination, the City shall be obligated to the Contractor for payment of amounts due and owing for materials provided or for services performed or furnished to the date and time of termination. Dated: ______________, 2023 CITY OF FARMINGTON: By: _________________________________ Joshua Hoyt, Mayor By: _________________________________ Shirley R Buecklser, City Clerk Dated: ______________, 2023 CONTRACTOR: MIRACLE RECREATIONAL EQUIPMENT COMPANY, INC. By: _________________________________ Its: __________________________________ Page 175 of 229 11/20/2023 Page 1 of 5 QUOTE: R0013213314 Miracle Recreation Equip. Co. 878 E. US Hwy 60 Monett, MO 65708 1-888-458-2752 QUOTE: R0013213314 CUSTOMER: 5502C04 Project: R0013_44517634533_12 Prepared For: Project Name & Location: Prepared by: Kellee Omlid Webber Recreational Design, Inc. CITY OF FARMINGTON 430 3RD Street (NEW) FARMINGTON, MN 55024 (651) 280-6851 (phone) komlid@farmingtonmn.gov Rambling River (Updated ADA playground) 1442 Brooke Court Hastings, MN 55033 USA (651) 438-3630 (phone) (651) 438-3939 (fax) jwebber@webberrec.com Ship To Address: End User: Dan Schmitt Kellee Omlid FARMINGTON MUNICIPAL BUILDING 19650 Municipal Drive FARMINGTON, MN 55024 (612) 369-8927 (phone) dschmitt@farmingtonmn.gov CITY OF FARMINGTON 430 3RD Street (NEW) FARMINGTON, MN 55024 (651) 280-6851 (phone) komlid@farmingtonmn.gov Quote Number: R0013213314 Quote Date: 11/20/2023 Valid For: 30 Days From Quote Date ADA System Product line: KidsChoice Age group: 5-12 Components Part Number Description Qty Weight Unit Price Total 7145039 1/2 HEX FULL DECK (ATTACHES TO 4 POSTS) 8 7145491 5" OD X 88" POST F/MAZE PANELS 6 7145493 5" OD X 112" POST (3' DK) 6 714555 5" OD X 76" POST FOR FENCING & PANELS 2 714576 5" OD X 204" POST FOR ROOF (8' DK) 6 7146058 TREE-O CLIMBER (8' DK) 1 7146702U CHAMII ENTRY & EXIT VORTEX (7' - 8'6" DK) 2 7146704 CHAMII SHORT STRAIGHT SECTION 1 7146705 CHAMII RIGHT SECTION 4 7146706 CHAMII LEFT SECTION 2 7146706 CHAMII LEFT SECTION 3 7146806C WAVE HEX ROOF W/TOPPER 1 714700 5' SIDE-BY-SIDE SLIDE,CANOPY (3' DK) 1 71471313 SENSORY PANEL TEXTURE SQUARE OVAL 1 71471510 SIGN LANGUAGE PANEL 1 71471513 CALYPSO 3 DRUM PANEL 1 71471517 ELECTRONIC ANIMAL PANEL 1 Exhibit A Page 176 of 229 11/20/2023 Page 2 of 5 QUOTE: R0013213314 7147632 TIC-TAC-TOE PANEL 1 7147635 PLANET PANEL 1 7147721 BONGO PERCH (STATIONARY) 3 7147721 BONGO PERCH (STATIONARY) 2 7147743 BONGO STEPS W/ENCLOSURE (3' DK) 1 7148135 DECK ENCL FOR OVERHEAD CLIMBERS (ONLY) 2 7148161 WIRE MESH ENCLOSURE 1 714817 CST TREEHOUSE WALL W/SEAT 1 7148191D BOULDER RIDGE 1 SEC, GRND-DK 1 7148496 OBSERVATION DECK W/EXTENDED STEERING WHEEL 1 71485139 SQ TRSFR POINT, CL HR (3' DK) 1 71492095 12' RAMP GRND TO DK 1:12, W/O POST 1 714920A ADA RAMP EXTENSION PLATE FLAT (SMALL) 1 7149219 12' RAMP DECK TO DECK 1:12 2 714961L2 DELIGHT-O-SCOPE BINOCULARS (LOOKOUT MOUNT) 1 7149922 LOOKOUT TOWER 1 714999Z CUSTOMER SERVICE KIT (NO PRICE) 1 787003 WELCOME SIGN AGES 5-12, FS 1 2-5 Product line: TotsChoice Age group: 2-5 Components Part Number Description Qty Weight Unit Price Total 307BD INCLUSIVE WHIRL (2023) * BOLT DOWN 1 7185019 TRIANGLE DECK (ATTACHES TO 3 POSTS) 1 7185029 SQUARE DECK (ATTACHES TO 4 POSTS) 1 7185494 3 1/2" OD X 118" POST (4' DK) 3 718572 3 1/2" OD X 138" POST ROOF (3'DK OR LESS) 4 7186384 GROOVE II SLIDE (4' DECK) 1 71869214 SHUTTLE CLIMBER 1 718700 5' SIDE-BY-SIDE SLIDE,CANOPY (3' DK) 1 7188109 ADA STAIRS BETWEEN DECKS W/1' RISE 1 7188153 VERTICAL LADDER CLIMBER (3' DK) 1 71885139 SQ TRSFR POINT, CL HR (3' DK) 1 7188614 60" SQUARE ROOF-SHINGLE, DOUBLE WALL 1 787001 WELCOME SIGN AGES 2-5, FREESTANDING 1 925920Z TOUCH UP PAINT KIT - FREESTANDING (NO PRICE) 1 Freestanding Product line: Freestanding Age group: 5-12 Page 177 of 229 11/20/2023 Page 3 of 5 QUOTE: R0013213314 Components Part Number Description Qty Weight Unit Price Total 2740 SWG PART THERAPEUTIC SWG SEAT W/CHAIN (8' TR) 1 2760 SWG PART GENERATION SWG SEAT W/CHAIN 1 2840 SWG PART SLASH PROOF SEAT W/CHAIN (8' TR) 4 2990 SWG PART TOT SEAT 360 DEG W/CHAIN (8' TR) 2 3064 CYCLO CONE PLUS CLIMBER 1 682A GLIDE ALONG ACCESSIBLE 1 682X GLIDE ALONG STANDARD ADD-ON 1 718555 3 1/2" OD X 70" POST FOR PLAY PANELS 2 71871516B ELECTRONIC PIANO PANEL (BELOW DECK) 1 MR0930 3.5" ARCH SWING- (2 SEAT REQ'D) 1 MR0932 3.5" ARCH SWG- ADD-A-BAY (2 ST REQ'D) 3 RiskSign_Included Product line: Freestanding Age group: Components Part Number Description Qty Weight Unit Price Total 787Z RISK MANAGEMENT SIGN - ENGLISH (NO PRICE) 1 Additional Items Part Number Description Qty Weight Unit Price Total 925961 THUMB DRIVE 2GB - MREC 1 926458 LABEL,GENERATION SWG, 2YR-12YR, MR 1 INSTALL BOOK INSTALL BOOK FOR PP ORDERS 1 Parts By Other Part Number Description Qty Weight Unit Price Total 4" x 12" Concrete Curb 4" x 12" Concrete Curb (361 Lineal Ft.) 1 0.00 11,550.00 11,550.00 Class 5 Sub Base 4" Stone Sub Base Installed and Compacted for PIP 1 0.00 32,550.00 32,550.00 Drain Tile 6" Drain Tile & Sub Base ( Up to 250 ft.) 1 0.00 1,905.00 1,905.00 NoFaultPIP 8,145 sq. ft. of NoFault Poured In Place Surfacing 50/50 Color/Black 1 0.00 152,750.00 152,750.00 Page 178 of 229 11/20/2023 Page 4 of 5 QUOTE: R0013213314 Totals: Equipment Weight: 13,694.00 lbs Equipment List: $193,959.00 Discount Amount: -$57,000.00 Equipment Price: $136,959.00 Freight: $5,818.00 Code: 9137 Installation: $62,060.00 Products by Other: $198,755.00 Grand Total: $403,592.00 Notes: Sourcewell Contract # 20432 This Quote shall not become a binding contract until signed and delivered by both Customer and Miracle Recreation Equipment Company (“Miracle”). Sales Representative is not authorized to sign this Quote on behalf of Miracle or Customer, and signed Quotes cannot be accepted from Sales Representative. To submit this offer, please sign below and forward a complete signed copy of this Quote directly to "Miracle Sales Administration" via fax (417) 235-3551 or email: orders@miraclerec.com. Upon acceptance, Miracle will return a fully-signed copy of the Quote to Customer (with copy to Sales Representative) via fax or email. THIS QUOTE IS LIMITED TO AND GOVERNED BY THE TERMS CONTAINED HEREIN. Miracle objects to any other terms proposed by Customer, in writing or otherwise, as material alterations, and all such proposed terms shall be void. Customer authorizes Miracle to ship the Equipment and agrees to pay Miracle the total amount specified. Shipping terms are FOB the place of shipment via common carrier designated by Miracle. Payment terms are Net-30 days from invoice date with approved credit and all charges are due and payable in full at PO Box 734154, Dallas, TX 75373-4154, unless notified otherwise by Miracle in writing. Customer agrees to pay all additional service charges for past due invoices. Customer must provide proper tax exemption certificates to Miracle, and shall promptly pay and discharge all otherwise applicable taxes, license fees, levies and other impositions on the Equipment at its own expense. Purchase orders and payments should be made to the order of Miracle Recreation Equipment Company. Quote Number: R0013213314 Quote Date: 11/20/2023 Equipment: $193,959.00 Grand Total: $403,592.00 CUSTOMER HEREBY SUBMITS ITS OFFER TO PURCHASE THE EQUIPMENT ACCORDING TO THE TERMS STATED IN THIS QUOTE AND SUBJECT TO FINAL APPROVAL BY MIRACLE. Submitted By Printed Name and Title Date THE FOREGOING QUOTE AND OFFER ARE HEREBY APPROVED AND ACCEPTED BY MIRACLE RECREATION EQUIPMENT By: Date: ADDITIONAL TERMS & CONDITIONS OF SALE 1. Use & Maintenance. Customer agrees to regularly inspect and maintain the Equipment, and to provide, inspect and maintain appropriate safety surfacing under and around the Equipment, in accordance with Miracle's product literature and the most current Consumer Product Safety Commission Handbook for Public Playground Safety. 2. Default, Remedies & Delinquency Charges. Customer's failure to pay any invoice when due, or its failure to otherwise comply with the terms of this Quote, shall constitute a default under all unsatisfied invoices ("Event of Default"). Upon an Event of Default, Miracle shall have all remedies available to it at law or equity, including, without limitation, all remedies afforded a secured creditor under the Uniform Commercial Code. Customer agrees to assist and cooperate with Miracle to accomplish its filing and enforcement of mechanic's or other liens with respect to the Equipment or its location or its repossession of the Equipment, and Customer expressly waives all rights to possess the Equipment after an Event of Default. All remedies are cumulative and not alternative, and no exercise by Miracle of a remedy will prohibit or waive the exercise of any other remedy. Customer shall pay all reasonable attorneys fees plus any costs of collection incurred by Miracle in enforcing its rights hereunder. Subject to any limitations under law, Customer shall pay to Miracle as liquidated damages, and not as a penalty, an amount equal to 1.5% per month of any payment that is delinquent Page 179 of 229 11/20/2023 Page 5 of 5 QUOTE: R0013213314 in such month and is not received by Miracle within ten (10) days after the date on which due. 3. Limitation of Warranty/ Indemnity. MIRACLE MAKES NO EQUIPMENT WARRANTIES EXCEPT FOR THOSE STANDARD WARRANTIES ISSUED WITH THE EQUIPMENT, WHICH ARE INCORPORATED HEREIN BY THIS REFERENCE. MIRACLE SPECIFICALLY DISCLAIMS ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND ANY LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES. CUSTOMER AGREES TO DEFEND, INDEMNIFY AND SAVE MIRACLE HARMLESS FROM ALL CLAIMS OF ANY KIND FOR DAMAGES OF ANY KIND ARISING OUT OF CUSTOMERS ALTERATION OF THE EQUIPMENT, ITS FAILURE TO MAINTAIN THE EQUIPMENT, ITS FAILURE TO PROPERLY SUPERVISE EQUIPMENT USE, OR ITS FAILURE TO PROVIDE AND MAINTAIN APPROPRIATE TYPES AND DEPTHS OF SAFETY SURFACING BENEATH AND AROUND THE EQUIPMENT IN ACCORDANCE WITH MIRACLES INSTALLATION AND OWNERS MANUALS AND THE MOST CURRENT CONSUMER PRODUCT SAFETY COMMISSION HANDBOOK FOR PUBLIC PLAYGROUND SAFETY. 4. Restrictions. Until all amounts due hereunder are paid in full, Customer shall not: (i) permit the Equipment to be levied upon or attached under any legal process; (ii) transfer title to the Equipment or any of Customer's rights therein; or (iii) remove or permit the removal of the Equipment to any location not specified in this Quote. 5. Purchase Money Security Interest. Customer hereby grants, pledges and assigns to Miracle, and Miracle hereby reserves a purchase money security interest in, the Equipment in order to secure the payment and performance in full of all of Customer's obligations hereunder. Customer agrees that Miracle may file one or more financing statements, in order to allow it to perfect, acquire and maintain a superior security interest in the Equipment. 6. Choice of Law and Jurisdiction. All agreements between Customer and Miracle shall be interpreted, and the parties' obligations shall be governed, by the laws of the State of Missouri without reference to its choice of law provisions. Customer hereby consents to the personal jurisdiction of the state and federal courts located in the city and county of St. Louis, Missouri. 7. Title; Risk of Loss; Insurance. Miracle Retains full title to all Equipment until full payment is received by Miracle. Customer assumes all risk of loss or destruction of or damage to the Equipment by reason of theft, fire, water, or any other cause, and the occurrence of any such casualty shall not relieve the Customer from its obligations hereunder and under any invoices. Until all amounts due hereunder are paid in full, Customer shall insure the Equipment against all such losses and casualties. 8. Waiver; Invalidity. Miracle may waive a default hereunder, or under any invoice or other agreement between Customer and Miracle, or cure such a default at Customer's expense, but shall have no obligation to do either. No waiver shall be deemed to have taken place unless it is in writing, signed by Miracle. Any one waiver shall not constitute a waiver of other defaults or the same kind of default at another time, or a forfeiture of any rights provided to Miracle hereunder or under any invoice. The invalidity of any portion of this Quote shall not affect the force and effect of the remaining valid portions hereof. 9. Entire Agreement; Amendment; Binding Nature. This fully-executed Quote, as supplemented by Change Orders and invoices containing exact amounts of estimates provided herein, constitutes the complete and exclusive agreement between the parties. A Change Order is a written instrument signed by the Customer and Miracle stating their agreement as to any amendment in the terms of this Quote. Customer acknowledges that Change Orders may result in delays and additional costs. The parties agree that all Change Orders shall include appropriate adjustments in price and time frames relating to any requested amendments. Upon full execution, this Quote shall be binding upon and inure to the benefit of the parties and their successors and assigns. 10. Counterparts; Electronic Transmission. This Quote, any invoice, and any other agreement between the parties, may be executed in counterparts, each of which shall constitute an original. The facsimile or other electronic transmission of any signed original document and retransmission of any signed facsimile or other electronic transmission shall be the same as the transmission of an original. At the request of either party, the parties will confirm facsimile or other electronically transmitted signatures by signing an original document. Rev E 021815 Page 180 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Shirley Buecksler, City Clerk Department: Administration Subject: Minutes of the November 28, 2023 Special Work Session Meeting: Regular Council - Dec 18 2023 INTRODUCTION: For Council review and approval are the minutes of the Special Work Session with the Castle Rock Township Board dated November 28, 2023. ACTION REQUESTED: Approve the minutes of the November 28, 2023 Special Work Session. ATTACHMENTS: 11.28.23 Special Work Session Minutes Page 181 of 229 Special Work Session Minutes of November 28, 2023 Page 1 of 7 City of Farmington City Council Special Work Session Minutes Tuesday, November 28, 2023 The City Council met in a Special Work Session with Castle Road Township on Tuesday, November 28, 2023, at Farmington City Hall, 430 3rd Street, Farmington, Minnesota. 1. CALL TO ORDER Mayor Hoyt called the Work Session to order at 5 p.m. Members Present: Mayor Joshua Hoyt Councilmembers Holly Bernatz, Nick Lien, Katie Porter (listened in remotely), and Steve Wilson Members Absent: None Staff Present: Lynn Gorski, City Administrator Julie Flaten, Asst City Administrator/HR Director Leah Koch, City Attorney Deanna Kuennen, Community & Economic Development Director Tony Wippler, Planning Manager John Powell, Public Works Director Shirley Buecksler, City Clerk Castle Rock Township Board of Supervisors Present: Jon Juenke, Chair Sandy Weber, Vice Chair BJ Elvestad, Supervisor (listened in remotely) David Nicolai, Supervisor Pete Schaffer, Supervisor Molly Weber, Clerk Also Present: Drew Johnson, Sr. Vice President, Oppidan Investment Co. Jacob Steen, Larkin Hoffman Trisha Sieh, Kimley-Horn 2. APPROVE AGENDA Motion was made by Councilmember Wilson and seconded by Councilmember Bernatz to approve the agenda, as presented. Motion carried: 5 ayes / 0 nays. 3. DISCUSSION ITEMS 3.1 Discuss the Approval of a Resolution to Amend the Castle Rock Township/City of Farmington Orderly Annexation Agreement to Include 315 Acres of Empey Property Page 182 of 229 Special Work Session Minutes of November 28, 2023 Page 2 of 7 Mayor Hoyt welcomed the Castle Rock Township Board of Supervisors and everyone attending tonight’s meeting. City Administrator Gorski thanked the Board for coming. It is an honor to have you here. We appreciate getting together to discuss and have a possible partnership together. Tonight, we have an introduction to this opportunity. The Township Board has heard this presentation already, But with our Council, we had established an ad hoc committee, so some of our Councilmembers have not heard this presentation and have not had an overview, so we want to be sure we are all on the same page, as well as the public. Drew Johnson of Oppidan Investment Company will be going over what the project entails and doing a project profile, design standards, and showing some pictures with examples of what some of these parks look like. We are proud to have you here and humbled to have you listen to what we have to say. The land is in Castle Rock Township and requires infrastructure from the City of Farmington. The Empey property owner is interested in annexing outside of the existing OAA. The objective is to facilitate the annexation of the Empey property, spanning 315 acres, into the City of Farmington. This proposed amendment is in consideration of a potential data center technology park opportunity. This proposed project represents a unique opportunity, one that would substantially increase the tax base in the region, boost the revenues of local businesses, offer educational job training, facilitate community outreach, and foster substantial investments. Its impact extends beyond Castle Rock Township and the City of Farmington. Mr. Johnson discussed the types of properties that fit into this type of project. Flat land with the ability to access municipal sewer and water, close to a solid work force, and more. There are not a lot of properties available like this. Where technology is going, the future are these contiguous campuses that can concentrate on investment and resources. They are not asking for tax increment financing (TIF), any public subsidies, or the City or Township to construct any of the infrastructure that would serve this campus. The Metropolitan Council has a large amount of recycled water to supply the summer cooling water which makes for a more efficient data center before that water goes back to the Mississippi River. City Administrator Gorski: There is no TIF for this project and no business subsidies. Castle Rock property owners will not be assessed for this project. We attended and presented at the November 14th project introduction meeting at Castle Rock. December 12 is the next Town Board Meeting and another milestone in this project. We would be looking for Castle Rock to vote on this annexation into Farmington. When the resolution is approved, the Memorandum of Understanding (MOU) starts, which includes the details. The timeline for annexation is estimated 90 to 120 days and the Alternative Urban Areawide Review (AUAR) is a six to nine months process. Page 183 of 229 Special Work Session Minutes of November 28, 2023 Page 3 of 7 The ask, Administrator Gorski said, is to allow the Empey property to be annexed into the City of Farmington. The fiscal impact also includes the county and the school district. We are estimating that when the build is done, by 2027, the estimated taxes for Castle Rock and Farmington are $239,747.62 for one year. It’s not just about us. It’s about the community as a whole. Mayor Hoyt affirmed that similar projects to this have a level of confidentiality and some questions may not be able to be answered tonight. Supervisor Nicolai asked about access to the property. Director Kuennen said those are details yet to come. When we get to the next step, we will be able to get those details. We understand the concerns. Supervisor Nicolai: If we agree, one big thing is the buffers were generous, and we are concerned about losing control of those buffers. Based on the orientation of the site, Mayor Hoyt asked if it would be fair to assume that the Township would like to see some level of primary access in the southwestern region of the property? Not a northern boundary access point. They agreed. I cannot preface enough that this is being done in good faith. Director Powell: The environmental review process will identify concerns of neighboring properties with a larger site being planned as a campus. Chair Juenke: These data centers use a lot of water. Is it new that you’re recycling water more? Director Powell: We are not taking from the water tower – it’s taken from ground water. We are not proposing any wells on the Empey property. The City wants to be sure we can supply what their needs are, but we are not proposing any new wells in that area. Chair Juenke: How much can you recycle before it goes to Met Council? Mr. Johnson: Recycled water is non-potable water. In Minnesota, the standards are quite high for recycled water. From the Met Council Empire plant, it would be water, once it was cleaned, ready to go back to the Mississippi River. It would go through a further polishing plant, which is required by regulations, to be used as non-contact cooling water within the data center. Given the reliability that these data centers need to have, using ground water, it would have to go through a water treatment plant, so the data center wants their system to work – and it’s not practical, cost effective, or reliable to rely on smaller private wells for this project. We need to be hooked up to city systems. Recycled water is the only reliable large environmentally conscious thing to do. That’s where the industry is going. Chair Juenke: Does this project give off much heat? Page 184 of 229 Special Work Session Minutes of November 28, 2023 Page 4 of 7 Mr. Johnson: Water is cycled. One a hot day, 50% of water is evaporated through the cooling process. Mayor Hoyt clarified the source of water will not originate from wells in the area. Mr. Johnson: City water and sewer has an industrial connection to the Met Council. Director Powell: Reminder, this is all within the City’s comprehensive plan to make sure we can serve all these demands. Chair Juenke: Would the City consider tarring the road to the southwest? Director Powell: If there are lines coming from Empire, the question is it a project with Empire to fit those needs. If significant changes are needed, I anticipate we will know early in the process. Vice Chair Weber: How many gallons of water will be taken out of the ground per day? Director Powell: We have a general idea but will not know until we are further in the project. We plan to add 2.5M gallons of storage. Mayor Hoyt: As far back as 2019, we have discussed an additional water tower site. This is a project forcing us to do more extensive long -term planning. Supervisor Nicolai: Traffic numbers are projected low. Ideas on projections? Mr. Johnson: Growth over 10 to 15 years is very uniform, relative to constructing buildings but the power will come in chunks the public won’t see. The public would see a pretty orderly build over 10 to 15 years, but within the inside of the building is different. Estimate full build in 2025 to 2038. One hundred people on the entire site at once. Off peak would only be security and night workers. Less than a few hundred workers. Mayor Hoyt: We are doing this in good faith. I believe the community recognizes things are a little bit different in today’s society. This is a generational opportunity. At the end of the day, this is about a property owner, not the City. Know that whatever we decide to do together, and how we get to that point, it is absolutely done in good faith. We want to hear from the Township, we want to hear from your residents. We respect the landowner’s rights, we respect the vision the Township has, as much as we do our residents’ vision. Our ask is that we continue to do this in good faith, that as we go through this, let’s hear reservations, likes and dislikes, but let’s come up with an answer and go from there. Mr. Johnson: From our side, given that there is still an eight month environmental review process, planning and agreements, is it a time crunch or just an urgency Page 185 of 229 Special Work Session Minutes of November 28, 2023 Page 5 of 7 on the business as these same uses are being sought out around the nation? Minnesota is set to get a lot of this investment. The annexation is the gateway to having something done in 2027, which may be the urgency for it. Director Kuennen: By the time a project gets in front of an elected body, there is a sense of urgency. Prior to that, the developer has done a lot of vetting of various types to narrow it down to sites that they believe will work. The magnitude of the project and the lead times, they have to pull the triggers now. They cannot expend the dollars to do things until the certainty is there. City Administrator Gorski emphasized that we recognize our partnership. We currently have our OAA. We are going to put our best foot forward. The first year is a 50% cost. After their certificate of occupancy, that is the number we are talking about. Administrator Gorski presented the City’s proposed tax distribution. The estimated taxes in 2027 are $239,747.62. The City is proposing that cost by 50% for eight (8) years, for a total payment just under $1M. Chair Juenke: Have you thought about attorney fees for the Township? City Administrator Gorski said we can discuss that detail. I hope you are pleased and surprised with this offer. Mayor Hoyt: This is being done in good faith. Some details will be worked out in due time. As we start to work this, details will be filled in. Some conversations may be more in-depth. Let’s have those conversations. We cannot do this without your approval. I believe we can come to a mutually agreed upon agreement. We can agree today that we can answer those questions when we get to that point. Chair Juenke: We agree, and we are here to listen. Director Kuennen: Having the resolution allows things to move forward. And the MOU – we work through those details while things get moving. Supervisor Schaffer: We only get together once a month, but you want an answer in two weeks. City Attorney Koch said the attorneys can negotiate and the Township Board could also schedule a special meeting. Mayot Hoyt: Something this big and impactful, the ask is – let’s do what we have to do. Would your body be able to take two of you as an ad hoc group to meet? Or as full bodies in public meetings. Chair Juenke: Empire became a city so you can’t go to them. That scares us that you’re coming to us. Supervisor Nicolai: The annexation agreement is more to me than money. This Council is cordial and cooperative. What happens when there are five new members who are not? We feel comfortable with you but we cannot bet on the future with who is sitting in those chairs. Page 186 of 229 Special Work Session Minutes of November 28, 2023 Page 6 of 7 Councilmember Bernatz: Thank you all for being here. A s the daughter of a dairy farmer, I see if from both sides. It’s not lost on me. What that means is I can see the emotional side of the Empey’s. It changes the trajectory of their family. I believe it to be absolutely true – this doesn’t happen for them or the developer unless we work through the details. This has the opportunity to change a lot of things for the community. Thank you. Councilmember Bernatz left the meeting at 6:15 p.m. Mayor Hoyt: For those that know me, I stand by my word. We will address the concerns that get us to a mutually acceptable OAA. The City is not trying to come into any township. I was part of the conversation with Empire when they asked us to take in the land just south of 160th, but we turned it down. We may not come asking, but someone else might, and we want to be in mutually agreeable situations where you can be respectful of what we’re looking for and we can be respectful of what it is you need. I will always refer to it as the greater Farmington area because that’s what it is. I will tell you that we are continuing down this path of maintaining civility, having honest conversations, establishing long-term relationships. We have to have a standard to take care of everyone in the area, whether they are city or township. Director Kuennen: At the last meeting, the Township expressed the desire to look at the existing annexation agreement to preserve and protect the identity of the future of the township. We heard that you wanted to update that, and we are willing to sit down and talk through that. We propose that we revisit that outside of this particular ask. In good faith, we are willing to sit down and talk about what that means. Mayor Hoyt: If there is a specific ask or something to consider, not only have we heard that, but let’s put it in writing and make it formal, as we would with our proposed tax calculations. The intention is to put it in writing. Clerk Weber: What happens after eight years? City Administrator Gorski: This agreement would then be completed. Mayor Hoyt: The split is done in 2027, and eight years start from then. We want you to feel like this is a win with a very strong offer. Come forward with whatever it takes to get it done. Chair Juenke: The Board can meet behind closed doors before December 12 th and have our asks to Administrator Gorski in writing before that date. In good faith, we will meet on Monday. Mayor Hoyt: In good faith, if fiscally we are on the same page for a mutually agreed upon distribution of the taxes, then let’s check that box. If for some reason you’re not, then put something in writing. The second part is an Orderly Annexation Agreement amendment, not Empey property, but the e xisting Page 187 of 229 Special Work Session Minutes of November 28, 2023 Page 7 of 7 agreement. Propose language for what you’re asking for in that, send it to Administrator Gorski, and we can discuss it internally. City Attorney Koch: Castle Rock will meet Monday to discuss the terms and come back to us with specifics, correct? At that point, until we talk with your attorney, I don’t want us to worry about the titles of what documents are, we need the thumbs up from your attorney. We need to make sure we are working through this at the right rate so as much as you can focus on the terms themselves, that would be great, and we can start working on what that document will actually look like. I am happy to work with your attorney or one of you and Administrator Gorski will also be involved. Chair Juenke: In good faith, we will meet possibly next Monday. Councilmember Wilson: Administrator Gorski will then bring the ad hoc committee to work together. 4. COUNCIL COMMITTEE UPDATE No update. 5. CITY ADMINISTRATOR UPDATE No update. 6. ADJOURNMENT Motion was made by Councilmember Wilson and seconded by Councilmember Lien to adjourn the meeting at 6:34 p.m. Motion carried: 4 ayes / 0 nays. Respectfully submitted, Shirley R Buecksler City Clerk Page 188 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: Shirley Buecksler, City Clerk Department: Administration Subject: Minutes of the December 4, 2023 Council Work Session Meeting: Regular Council - Dec 18 2023 INTRODUCTION: For Council review and approval are the minutes of the Council Work Session dated December 4, 2023. ACTION REQUESTED: Approve the minutes of the December 4, 2023 Council Work Session. ATTACHMENTS: 12.04.23 Work Session Minutes Page 189 of 229 Work Session Minutes of December 4, 2023 Page 1 of 8 City of Farmington City Council Work Session Minutes Monday, December 4, 2023 The City Council met in a Work Session on Monday, December 4, 2023, at Farmington City Hall, 430 3rd Street, Farmington, Minnesota. 1. CALL TO ORDER Mayor Hoyt called the Work Session to order at 5 p.m. Members Present: Mayor Joshua Hoyt Councilmembers Holly Bernatz, Nick Lien, Katie Porter, and Steve Wilson Members Absent: None Staff Present: Lynn Gorski, City Administrator Julie Flaten, Asst City Administrator/HR Director Deanna Kuennen, Community & Economic Development Director Kim Sommerland, Finance Director Justin Elvestad, Fire Chief Jeff Allbee, Fire Relief President Tony Wippler, Planning Manager Gary Rutherford, Police Chief John Powell, Public Works Director Ed Rutledge, Natural Resources Specialist Shirley Buecksler, City Clerk Also Present: Vishal Dutt, Development Partner, Yellow Tree Robb Lubenow, Yellow Tree Tom Wasmoen, Firm Ground Architects and Engineers 2. APPROVE AGENDA Motion was made by Councilmember Wilson and seconded by Councilmember Bernatz to approve the agenda, as presented. Motion carried: 5 ayes / 0 nays. 3. DISCUSSION ITEMS 3.1 Discussion Regarding Proposed Development and Existing Special Assessments Director Kuennen presented. In June of this year, Staff attended the Minnesota Real Estate Journal Apartment Summit, where they met Vishal Dutt, Development Partner with Yellow Tree – a Minneapolis-based commercial real Page 190 of 229 Work Session Minutes of December 4, 2023 Page 2 of 8 estate development and construction firm. Staff has been working with Mr. Dutt (the Developer) to identify a site in Farmington for the construction of a market rate apartment project. The Developer has secured a site and is now seeking assistance from the City to advance this project. Mr. Dutt has successfully negotiated a purchase agreement for a 3 -acre portion of the 15-acre "Hy-Vee" property (PID 148260000031). The site, once subdivided, would house a market-rate apartment development with covered and surface parking, and other outdoor amenities. The proposed project is estimated to be $28 million - which includes land acquisition, hard construction costs and soft costs (architecture, engineering, finance, etc.). In order for the project to move forward, the developer is seeking financial assistance from the City - in the form of forgiveness of the special assessment attached to the property and some form of tax incentive (tax abatement). These resources are necessary for the project to be financially feasible. The property is currently paying on a 15-year special assessment that was previously deferred. Calendar year 2023 is Year 2 of the assessment payments, with a total approximate payoff of $1,722,595 (total parcel), at a per acre rate of $116,549. Based on these numbers, the special assessment is an impediment to the project, as it adds an additional estimated $350,000 to the overall development costs for the 3-acre development. Before spending additional dollars on engineering, architecture, and design, the Developer is seeking input regarding the City Council's appetite to waive the special assessment on the 3-acre portion of the overall parcel (contingent to the investment/development moving forward) and also if the City Council is open to exploring the use of tax abatement as a means to reduce the financial gap/feasibility in order to advance the project. Based on feedback from the City Council, the Developer will decide whether to continue pursuing the project at this location. If there is positive feedback and a willingness to support utilizing such resources to advance the development, the next steps will include engaging with the City's financial consultant to work with the developer in preparing a more in -depth financial analysis and tax incentive recommendation which would come back at a future meeting. Discussion included: Councilmember Wilson: As a policy maker, where we know there is going to be a need to use financing tools on a lot of different projects, whether its multi family, high quality apartments, retail, commercial, etc., we have to know what the City’s capacity is to waive or abate. There has to be a threshold. For a period of time, there is going to be a lot of taxes and things that are waived where we are either holding market value for an extended period of time or you just flat out waive it. And I have to believe with the Peterson north portion, the remainder of the Hy- Vee property, and the portion on the other side of Eden, those are going to require some kind of assistance, too. As a City, we need to be prepared to help, Page 191 of 229 Work Session Minutes of December 4, 2023 Page 3 of 8 but what is the threshold to help them? I don’t want to be responsible for holding the future of the City hostage in the same way it happened before for a period of time, and we need to see those assessments coming through. We should be prepared for an expectation of $1.72M would be automatically asked for if we were to give it to one developer, I assume the remainder would. Director Kuennen: The abatement is limited by state law. If we are interested in abatement for this project, we are well under the threshold. Looking how we can use future taxes to support a project, With the project comes the ask to abate a portion of those taxes. Part is keeping those existing taxes. We are only looking to use the taxes from the project, into the project. Every request will be analyzed on its own merit. Councilmember Lien: Has Hy-Vee shared their plans and do they have 3 acres to spare? Manager Wippler said they had an approved site plan and occupational use and that they did not use the entire space. Councilmember Bernatz: 1) As we divide the parcel, what is the likelihood of smaller parcels that we would have an equal investment to the $28M parcel? Giving up $1.7M could potentially return a higher gain. 2) What is the benefit/loss to the City in regard to abatement? 3) What is the message that we send to corporations if we forgive abatement? It is not our job to penalize other developers for the actions of a previous developer. Mr. Dutt: If you put in housing, everything else will come. Councilmember Lien agreed – you need people to make business grow. Director Kuennen: We are actively trying to recruit a grocery store. There are metrics that grocery stores look at. This is the kind of development that helps the case to get a grocery store here. The location of the site does not limit the use of the other 12 acres. It is a logical location. Councilmember Porter: 80% of our tax base is residential. We understand that drives the market analysis. Are we complicating a partnership that we are trying to create? The market for that in Farmington concerns me. Thinking about the abatement and lack of proven success rate with rental is hard. I’m not here to say no – we just need a little more in front of us, with the possibility of that $1.7M. The comparison to Farmington is really hard to find. The ask for the market rate pricing – there is a lot bigger demand for that. Mr. Lubenow: A lot is played out through a market rate study to get that information. Director Kuennen: The market analysis will determine the rents that will be compatible here. The Ebert construction project will be included in that analysis. Council would have a lot of decisions before it’s considered. Page 192 of 229 Work Session Minutes of December 4, 2023 Page 4 of 8 Councilmember Porter: We are going to have concerns from our constituents and it’s our responsibility to ask those questions. I appreciate the point that many people are still working remotely. Mayor Hoyt: There are some good questions and points that have been made. But it’s important to understand that, for the past seven years, the City was promised a build by a big company, but that changed, and we have had to put out fires in the community for the past five to seven years. Abatement, or waiving any form of assessment, must either bring jobs in or create density, which becomes a promotion for other employers to bring jobs in. You need to do your market study, but we would hate to abate and 12 months from now, we could have a property with no development. We need a reasonable amount of certainty of what the ask is. When we started doing Vita Attiva, we had to redo the comprehensive plan regarding mill and overlay. The first think I look at is if the square-about doesn’t need to be there, does it affect the site layout and ability to put in more units? Mr. Dutt: This is three levels with underground parking and on surface parking. Mayor Hoyt: Do you have any mixed use projects with retail integrated in the system? The need for more retail options continues to exist. How do you achieve your density and cost mix along with some sort of retail? Does the square-about change your site layout? There is a huge appetite for a lot more mixed use. Mr. Wasmoen: I don’t think this site is good for mixed use but perhaps on the north side. It would have to be a destination retail with more parking. First floor retail in Lino Lakes still has empty space for the past 17 years. The grand vision is hard and works better when it’s organic. I would work on increasing retail in the downtown. Mayor Hoyt: I understand you want some form of direction. I am in favor of the $350K going away because it’s adding to our density. We don’t have the housing to support the workforce for some of these larger prospective employers. I would support it for that reason. I will ask that we get some level of idea of what type of abatement you’ll need. What can’t happen is we let the $350K go, the City takes on a million dollars in road reconstruction project, connect things through, and meet all the fire needs, we can’t take on that expense and then find out there is going to be a fill-in-the-blank ask and abatement. We don’t want you to incur expenses and then come back and we say no. As long as the additional abatement over time isn’t over the top that it becomes prohibitive for us in future capacity. Councilmember Bernatz: I agree with your position on it and would take a similar stance. We need to remember as Council that the questions and conversations will be tough with residents, and it is our goal to discuss those. I want to know more about the dollars and cents – anything that provides density along with commercial, I’m happy moving forward. Page 193 of 229 Work Session Minutes of December 4, 2023 Page 5 of 8 Councilmember Porter: We are just asking for more clarity. This is an aesthetically pleasing project. Councilmember Wilson: The development is attractive. The market will be the guiding point for density. I am concerned about the road and don’t like the way it’s configured, so that will need to be figured out. Specifically, Dushane Parkway - the idea is to bring it straight down to the intersection or a roundabout. Mayor Hoyt: Vita Attiva is responsible for the intersection signal at Pilot Knob. It’s the right time to look at the square-about and provide a smooth transportation flow. That definitely needs to be looked at. The developer can come up with a concept for a roundabout versus a square-about that will work for them. Councilmember Wilson: The major issue I have is Council needs to discuss the $1.7M and what it looks like. We need a dialogue about the whole thing, but it’s a very attractive project. Councilmember Lien: We know there is a shortage of retail, so my tolerance of the abatement is higher if there is retail. Mayor Hoyt: We believe we know what our community needs. We always have an appetite for more retail. About three of us are clearly yes, absent more information. A quick offline conversation will fill in the other gaps. Staff can do that as quickly as possible. Mr. Dutt: We intend to start by Fall 2024. 3.2 Emerald Ash Borer (EAB) Management Plan – Update Director Powell and Natural Resources Specialist Rutledge presented. Earlier this year, City Council considered various scenarios for an updated EAB Management Plan. On March 20, 2023, Council approved Scenario #4, which aggressively responds to the EAB while keeping public safety as the focus. Scenario #4 pertains to public trees, particularly those in boulevard areas (city right-of-way outside of the roadway) and park areas. This scenario uses a coordinated approach on public ash trees, including extensive tree removals, along with injection of an insecticide to extend the health of the trees until they can be safely removed. At the same time, we have a significant effort underway to perform boulevard tree trimming along roadways. Staff provided a brief update to Council on our progress and challenges so far. An annual update will be provided in March or April of 2024. Following are some metrics for trees removed, trimmed, ash-treated and stumps removed so far in 2023. More trees will be trimmed in the next few weeks via contracted labor. Page 194 of 229 Work Session Minutes of December 4, 2023 Page 6 of 8 Tree removals: • 375 trees removed. • Includes 325 Ash trees; the remainder were dead/hazard trees of other species. • 86% removed by contractors; the balance removed by City Staff. Trimming: • 570 trees trimmed. • 65% trimmed by contractors; the balance by City Staff. Treatment: 1,060 trees by contractor. Stump Removal: 449 stumps removed by contractors We are also doing major trimming. We have code support for doing the work we do, but it has a big impact on residents. There has been a backlog in pruning for about a decade. Future focus will be hazards and trimming only. We have a Green Corp member auditing trees who found about 40 private trees – we are bound to find more going forward. It’s labor intensive. People are starting to understand, and the calls are slowing down. We may look at a tree rebate program for planting new trees. Some may plant the tree on their side of the lot line, and it will become a private tree – that comes with a lot of communication. The goal is to replace trees because we are losing our canopy and a variety of species. Councilmember Lien asked that we have language with a specific list of species. Mayor Hoyt suggested going one step further regarding species and placement, which trees provide canopy and height over sidewalks, mix of trees, likelihood of success, and the proposed rebate. Come up with an ordinance and a way to implement a good plan. Spot it for them on GIS and we will figure it out from a policy standpoint. Councilmember Lien asked about expectations of park land. Behind his home is 80% marsh and 20% buckthorn. Mayor Hoyt said as we go through future developments, we need to be talking about trees and placement. He also suggested a City forestry division where things can be handled internally. 3.3 Speed Limit Background Director Powell presented the issue of speed limit levels, the City's ability to set speed limits, and the process for changing speed limits has been raised in the past, and again more recently. This is a good opportunity to share background Page 195 of 229 Work Session Minutes of December 4, 2023 Page 7 of 8 information on relatively recent legislative changes and research pertaining to speed limits. Minnesota Statute Section 169.14, subd. 2 was updated August 1, 2019, by the Minnesota State Legislature. The change gave cities the authority to establish speed limits for streets under their jurisdiction without having MnDOT conduct a speed study and without approval by the Commissioner of Transportation provided that: • Speed limits are implemented in a consistent and understandable manner. • The City erects appropriate signs to display the speed limit. • The City develops procedures to set speed limits based on the City’s safety, engineering, and traffic analysis considering national urban speed limit guidance and studies, local traffic crashes, and methods to effectively communicate the change to the public. The best practices process (which could be applied either citywide or roadway specific) described in the report is as follows: 1. Document Existing Conditions 2. Survey Residents and Elected Officials 3. Analyze your Data 4. Partnering with Law Enforcement 5. Evaluate Alternative Approaches/Make a Decision 6. Prepare a Policy Statement 7. Develop a Plan to Implement 8. Conduct a Follow-Up Assessment Two examples of how Saint Paul and Minneapolis have responded to speed limit legislation changes were included in the Council’s packet. The approach for Farmington needs to be developed at a level of scope detail that meets our needs. The goal being that we develop a defined process that incorporates best practices and transparency for the public. Director Powell will direct Staff to prepare a procedure and approach for future requests to change speed limits. We currently do not have a procedure to follow. 4. COUNCIL COMMITTEE UPDATE No update. 5. CITY ADMINISTRATOR UPDATE No update. Page 196 of 229 Work Session Minutes of December 4, 2023 Page 8 of 8 6. ADJOURNMENT Motion was made by Councilmember Lien and seconded by Councilmember Bernatz to adjourn the meeting at 6:53 p.m. Motion carried: 5 ayes / 0 nays. Respectfully submitted, Shirley R Buecksler City Clerk Page 197 of 229 REGULAR COUNCIL AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: John Powell, Public Works Director Department: Engineering Subject: First Amendment to the Residential Solid Waste/Recycling Services Agreement Between the City of Farmington and Dick's Sanitation Meeting: Regular Council - Dec 18 2023 INTRODUCTION: In November of 2021, the City entered into an agreement with Dick's Sanitation Service, Inc. (DSI) for solid waste services for an initial term of five years. The agreement includes a rate schedule for trash and recycling for the years 2022 through 2026. DSI is requesting an amendment to the agreement. DISCUSSION: City of Farmington waste is processed at the City of Red Wing. On December 6, 2023, the City of Red Wing notified DSI and the City that their Municipal Solid Waste (MSW) tipping fee was increasing from $113.00/ton to $118.00/ton; an increase of 4.4%. Per section 19.11 of the original agreement, DSI is allowed to pass on this cost increase to their customers in Farmington. This agreement interpretation was confirmed with the City Attorney. Exhibit B shows how this Red Wing cost increase will impact the Farmington rates with the new rate being in the column shaded yellow. The rate increase applies only to trash, not recycling. The "Current Rate" on Exhibit B is the existing 2023 rate; the "New Rate" is the 2024 rate with the tipping fee cost increase incorporated. The right side of the exhibit shows the 2024 rate stated in the existing contract, and the percent increase resulting from the tipping fee increase. In all cases, the increase is 0.65% or less. BUDGET IMPACT: Per the existing agreement, DSI provides trash and recyclable collection at City facilities at no additional cost to the City. ACTION REQUESTED: Approve the First Amendment to the Residential Solid Waste/Recycling Services Agreement Between the City of Farmington and Dick's Sanitation. ATTACHMENTS: DOCS-#229173-v1-FIRST_AMENDMENT_TO_DSI_AGREEMENT Page 198 of 229 Exhibit A 2024 Hauler Disposal Rates DSI Exhibit B Farmington Increase Breakdown DSI Agreement Page 199 of 229 229173v1 FIRST AMENDMENT TO AGREEMENT FOR RESIDENTIAL SOLID WASTE / RECYCLING SERVICES AGREEMENT BETWEEN THE CITY OF FARMINGTON AND DICK’S SANITATION THIS FIRST AMENDMENT TO RESIDENTIAL SOLID WASTE / RECYCLING SERVICES AGREEMENT BETWEEN THE CITY OF FARMINGTON AND DICK’S SANITATION (“First Amendment”) is made this 18th day of December, 2023, by and between the CITY OF FARMINGTON, a Minnesota municipal corporation (the "City") and DICK’S SANITATION SERVICE, INC., a Minnesota corporation (“DSI” or "Contractor"). RECITALS A. City and DSI entered into an Agreement for Residential Solid Waste / Recycling Services, made effective January 1, 2022 (“Agreement”). B. On December 6, 2023 the Deputy Director of Solid Waste in the City of Red Wing notified Contractor and City of an increase in the Municipal Solid Waste tipping fee, attached hereto as Exhibit A. C. Section 19.11 of the Agreement allows DSI to pass on such documented increases in disposal fees to the customer. D. The parties desire to memorialize the change in fees consistent with the Agreement. IN CONSIDERATION OF THEIR MUTUAL COVENANTS, THE PARTIES AGREE AS FOLLOWS: 1. Modification to Rates and Charges. Attachment C of the Agreement regarding Rates and Charges shall be modified per Exhibit B of this Amendment, attached hereto. 2. Effect of Agreement. Except as specifically amended by this Amendment, the Agreement shall remain in full force and effect. [Remainder of page intentionally left blank. Signature page follows.] Page 200 of 229 229173v1 CITY OF FARMINGTON By:__________________________________ Joshua Hoyt Its Mayor By:__________________________________ Shirley R Buecksler Its City Clerk DICK’S SANITATION BY: _____ Print:____________________________________ ITS: _____________________________________ Page 201 of 229 229173v1 EXHIBIT A Letter from Red Wing’s Deputy Director of Solid Waste Page 202 of 229 229173v1 EXHIBIT B Attachment C Rates and Charges Page 203 of 229 1873 Bench Street Red Wing, MN 55066 Website: www.red-wing.org Phone: 651.385.3658 Fax: 651.385.3670 December 6, 2023 Jeff Weast Dick’s Sanitation Service, Inc. 8984 215th Street West Lakeville, MN 55044-8338 Mr. Weast: The letter is sent to inform you and the City of Farmington that on December 4, 2023 the Red Wing City Council approved the 2024 Fee Schedule. Of note is the increase to the Municipal Solid Waste (MSW) tipping fee from $113.00/ton to $118.00/ton. The Cities of Red Wing and Farmington have been working together since 2019 to ensure that each achieves the best outcomes for waste generated in our respective communities facilitated through Farmington’s contracted waste hauler Dick’s Sanitation (DSI). Red Wing takes a great deal of pride in the cooperation between our communities and the shared environmental benefits of recovering recyclable commodities from waste, using waste as a renewable energy and landfill abatement achieved through this partnership. The City of Red Wing’s Solid Waste Division would also like to extend to Farmington staff and Elected Officials an open invitation to tour the City of R ed Wing’s waste processing operations to better understand how Farmington waste is managed. We greatly appreciate your support and if you have any questions or comments, please contact me directly. Thank you, Jeff Schneider Deputy Director, Solid Waste Page 204 of 229 LOB Container Size (Gallon)Current Rate New Rate Cycle 2024 Contract Rate Delta % Over Contracted Rate RESI MSW 35 15.26$ 15.82$ Monthly 15.72$ 0.10$ 0.63% RESI MSW 65 20.37$ 21.12$ Monthly 20.98$ 0.14$ 0.65% RESI MSW 95 25.01$ 25.93$ Monthly 25.76$ 0.17$ 0.65% RESI REC 35 7.47$ 7.69$ Monthly 7.69$ -$ 0.00% RESI REC 65 7.47$ 7.69$ Monthly 7.69$ -$ 0.00% RESI REC 95 7.47$ 7.69$ Monthly 7.69$ -$ 0.00% MSW & REC 35 68.20$ 70.53$ Quarterly 70.24$ 0.29$ 0.41% MSW & REC 65 83.52$ 86.42$ Quarterly 86.03$ 0.39$ 0.45% MSW & REC 95 97.43$ 100.85$ Quarterly 100.35$ 0.50$ 0.50% YARDWASTE 95 133.00$ 137.00$ Annual 137.00$ -$ 0.00% LOB Container Size (Yard)Current Rate New Rate Cycle COMM MSW 1 52.66$ 54.59$ Monthly 54.25$ 0.34$ 0.63% COMM MSW 1.5 74.70$ 77.44$ Monthly 76.94$ 0.50$ 0.65% COMM MSW 3 129.45$ 134.20$ Monthly 133.33$ 0.87$ 0.65% COMM MSW 4 184.19$ 190.94$ Monthly 189.72$ 1.22$ 0.65% COMM MSW 6 238.94$ 247.70$ Monthly 246.11$ 1.59$ 0.65% COMM MSW 8 293.69$ 304.46$ Monthly 302.50$ 1.96$ 0.65% COMM MSW 10 348.44$ 361.22$ Monthly 358.89$ 2.33$ 0.65% COMM MSW 1 157.98$ 163.77$ Quarterly 162.72$ 1.05$ 0.65% COMM MSW 1.5 224.10$ 232.32$ Quarterly 230.82$ 1.50$ 0.65% COMM MSW 3 388.34$ 402.58$ Quarterly 399.99$ 2.59$ 0.65% COMM MSW 4 552.58$ 572.84$ Quarterly 569.16$ 3.68$ 0.65% COMM MSW 6 716.83$ 743.12$ Quarterly 738.33$ 4.79$ 0.65% COMM MSW 8 881.06$ 913.37$ Quarterly 907.49$ 5.88$ 0.65% COMM MSW 10 1,045.31$ 1,083.64$ Quarterly 1,076.66$ 6.98$ 0.65% COMM REC 1 36.86$ 37.97$ Monthly 37.97$ -$ 0.00% COMM REC 1.5 52.29$ 53.86$ Monthly 53.86$ -$ 0.00% COMM REC 3 90.61$ 93.33$ Monthly 93.33$ -$ 0.00% COMM REC 4 128.94$ 132.80$ Monthly 132.80$ -$ 0.00% COMM REC 6 167.26$ 172.28$ Monthly 172.28$ -$ 0.00% COMM REC 8 205.58$ 211.75$ Monthly 211.75$ -$ 0.00% COMM REC 10 243.90$ 251.22$ Monthly 251.22$ -$ 0.00% COMM REC 1 110.59$ 113.90$ Quarterly 113.90$ -$ 0.00% COMM REC 1.5 156.87$ 161.57$ Quarterly 161.57$ -$ 0.00% COMM REC 3 271.84$ 279.99$ Quarterly 279.99$ -$ 0.00% COMM REC 4 386.81$ 398.41$ Quarterly 398.41$ -$ 0.00% COMM REC 6 501.78$ 516.83$ Quarterly 516.83$ -$ 0.00% COMM REC 8 616.74$ 635.25$ Quarterly 635.25$ -$ 0.00% COMM REC 10 731.71$ 753.67$ Quarterly 753.67$ -$ 0.00% City of Farmington Pa g e 2 0 5 o f 2 2 9 SOLID WASTE / RECYCLING SERVICES AGREEMENT BETWEEN THE CITY OF FARMINGTON AND DICK'S SANITATION THIS SOLID WASTE / RECYCLING SERVICES AGREEMENT is made and entered into effective the 1st day of January, 2022 (the "Effective Date"), by and between the CITY OF FARMINGTON, a Minnesota Municipal Corporation organized and existing under the laws of the State of Minnesota (the "City") and DICK'S SANITATION SERVICE, INC., a Minnesota Corporation(s) ("DSI" or the "Contractor"). WITNESSETH A. WHEREAS,the City has found and determined that the public health and safety of the City will be promoted and preserved by establishing an arrangement for the collection, transportation, and disposal of solid waste kept and accumulated by residences and businesses within the City as defined in City Code Section 7-1-2; and B. WHEREAS,DSI is engaged in the business of collection and recycling of solid waste and is familiar with the requirements of the City and its solid waste services; and C. WHEREAS, the City has determined DSI to be qualified to carry out the terms of this Agreement upon the terms and conditions and for the consideration hereinafter provided: and NOW, THEREFORE, in consideration of the foregoing and the covenants, promises, undertakings,and obligations herein created,granted,and assumed,the parties hereto agree as follows: 1. DEFINITIONS 1.1. For purposes of this Agreement,terms not otherwise defined herein shall have the following meanings: 1.1.1. Affiliate: Any entity, directly or indirectly, through one or more intermediaries,controlling,controlled by,or under common control with the relevant party. 1.1.2. Bulky Wastes: Stoves,refrigerators,water heaters,washing machines and similar "white goods," bicycles, lawn mowers, lawn chairs, furniture and other waste material other than construction debris, or hazardous waste with weights or volumes greater than those allowed for bags or carts. Bulky household solid waste does not include electronic waste. 1.1.3. Collection: The aggregation of Municipal Solid Waste (MSW), Recyclables,Bulky Wastes, Organics and Yard Wastes from the place at SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 206 of 229 which they are generated including all activities up to the time they are delivered to a processing facility. 1.1.4. Cart: The wheeled, lidded container in which Solid Waste, Recyclable materials or Yard Wastes can be stored and placed for curbside collection. 1.1.5. City Administrator: The Farmington City Administrator or their designee. 1.1.6. City-Designated Solid Waste Disposal Facility: The facility designated by the City where DSI is required to deposit Trash and/or recyclables collected under this Contract. 1.1.7. Collection Vehicle:Any vehicle licensed and inspected as required by the state and county and approved by the City for solid waste collection within the corporate boundaries of the City. 1.1.8. Composting Facility: Facility licensed to process yard waste and/or source separated organics in conformance with state and local regulations. 1.1.9. Confidential/privileged: Information protected by privilege under applicable law and information which by its nature would reasonably be considered confidential or proprietary. 1.1.10. Contract: The City of Farmington service agreement for solid waste and recyclables collection services and as subsequently amended. 1.1.11. County: Dakota County,MN 1.1.12. Dwelling Unit: A building or portion thereof designed or used exclusively for residential occupancy as dwelling units. 1.1.13. Electronic Waste: Any discarded consumer electronic device with a circuit board including,but not limited to:televisions,computers,laptops, tablets, computer monitors, peripherals (e.g., keyboard, printer, mouse, etc.), cell phones, PDAs, DVD recorders/players and video cassette recorders/players,fax machines and other items as specifically referenced in Minnesota Statutes Section 115A.1310. 1.1.14. Hazardous Waste: Has the meaning prescribed in Dakota County Ordinance No. 110 Hazardous Waste means any refuse, sludge,spent solutions or other waste material or combinations of refuse, sludge, spent solutions or other waste materials in solid, semi-solid, liquid, or contained gaseous form which, because of its quantity, concentrations, or chemical,physical, or infectious characteristics may(a)cause or significantly contribute to an increase in mortality or an increase in serious irreversible or incapacitating reversible illness;or(b)pose a substantial present or potential hazard to human health or the environment when improperly treated, stored, transported, or disposed of, or otherwise managed. Categories of hazardous waste materials include, but arenot limited to: explosives, flammables, oxidizers, poisons, irritants and SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 207 of 229 corrosives. Hazardous waste does not include source,special nuclear, or by-product material as defined by the Atomic Energy Act of 1954, as amended." 1.1.15. Holidays: There are six(6)major Holidays observed each year:New Year's Day,Memorial Day,Fourth of July,Labor Day,Thanksgiving Day, Christmas Day. 1.1.16. Mixed Municipal Solid Waste(MSW): Has the meaning prescribed in Dakota County Ordinance No. 110 : garbage, refuse, and other solid waste from residential, commercial, industrial, and community activities that the generator of the waste aggregates for collection but does not include auto hulks, street sweepings, ash, construction debris, mining waste, sludges, tree and agricultural wastes, tires, lead-acid batteries, motor orvehicle fluids and filters, and other materials collected, processed, and disposed of as separate waste streams." Also referred to in this contract as"Trash". 1.1.17. Non-Recyclable Paper.Non-recyclable paper includes,but is not limited to, paper napkins, towels, and tissues; paper plates and cups; food containers; paper bags and waxed paper (fast food wrappers, parchment paper,etc.);paper milk and juice cartons (remove plastic spouts-NO juice boxes or pouches); cardboard pizza boxes; boxes from refrigerated and frozen food and beverages; coffee filters (and grounds); and tea bags. 1.1.18. Multiple Unit Residential Dwelling: Any building consisting of more than three(3)Residential Dwelling Units. 1.1.19. Person: Includes any natural person, corporation, firm or association. 1.1.20. Pick-up(Stop):A collection of one or more containers from a Residential Single Dwelling. One pick-up may include more than one container or extra bag or bundle. 1.1.21. Premises: Any dwelling house, dwelling unit,building, and every other place or premises where any person resides, or a business is operated within the City. 1.1.22. Problem Material Waste: Waste that is too large to fit into a standard Trash cart and require special collection by DSI. Problem material waste includes (but is not limited to): furniture, appliances, mattresses, and bed springs. Problem material waste does include household electronic waste. 1.1.23. Recyclables:Has the meaning prescribed in Dakota County Ordinance No. 110: Materials that are suitable for separating from solid waste for the purpose of recycling including, but not limited to,paper, glass,plastics, metals, automobile oil, batteries, etc. Refuse derived fuel or other material that is destroyed by incineration is not a recyclable material.. For a more complete definition and list of recyclable materials,please see the Dakota County,Minnesota Designated List of Recyclables. SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 208 of 229 1.1.24. Recyclables Pick-up: Each instance that recyclables are picked up at aResidential Dwelling Unit(RDU) or a commercial account. 1.1.25. Recyclables Processing Facility.Facility designed for centralized sorting, processing,and/or grading of collected recyclable materials for marketing. The facility will conform to all applicable rules, regulations and laws of state, local or other jurisdictions. 1.1.26. Residential Dwelling Unit(RDU):Any eligible,occupied dwelling having a kitchen occupied by a person or group of persons. 1.1.27. Residuals: Waste materials left after recovery of recyclables and/or the physical, chemical or biological processing of wastes. 1.1.28. Single Stream Recycling/Single Sort Recycling: The recycling system inwhich residents set out recyclables in one container without further sortingby residents, and the materials are later processed at a processing facility into their individual marketable commodities. 1.1.29. Solid Waste: Has the meaning prescribed in Dakota County Ordinance No. 110,which states: Solid Waste" means garbage, refuse, sludge from a water supply treatment plant or air containment treatment facility, and other discarded waste materials and sludges, in solid, semisolid, liquid, or contained gaseous form, resulting from industrial, commercial, mining, and agricultural operations, and from community activities, but does not include hazardous waste, animal waste used as fertilizer, earthen fill, boulders, rock, sewage sludge, solid or dissolved material in domestic sewage or other common pollutants in water sources, such as silt, dissolved or suspended solids in industrial waste water effluents or discharges which are point sources subject to permits under section 402 of the federal Water Pollution Control Act, as amended, dissolved materials in irrigation return flows, or source, special nuclear, or by- product material as defined by The Atomic Energy Act of 1954, as amended. 1.1.30. Source Separated Organics (SSO): Has the meaning prescribed in Dakota County Ordinance No. 110,which states: Source Separated Compostable Material means materials that: 1. Are separated at the source by waste generators for the purpose of preparing them for use as compost; 2. Are collected separately from mixed municipal solid waste, and are governed by the licensing provisions of Minn. Stat. §115A.93; 3.Are comprised offood wastes,fish animal waste,plant materials, and compostable materials that meet the standards in ASTM D6400 and ASTM D6868 as incorporated by reference under Minn. Rule. 7035.0605; 4. Are delivered to a facility to undergo controlled microbial degradation to yield a humus-like product meeting the MPCA's class SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 209 of 229 I or class II, or equivalent, compost standards and where process residues do not exceed 15% by weight of the total material delivered to the facility; and 5. May be delivered to a transfer station, mixed municipal solid waste processing facility, or recycling only for the purposes of composting or transfer to a composting facility, unless the MPCA determines that no other person is willing to accept the materials. 1.1.31. Trash: See Mixed Municipal Solid Waste. 1.1.32. Volume-based charges: Charges that vary based on limits of MSW which a premise is permitted to dispose of,often measured by the Trash Cart size. Yard Waste: Has the meaning prescribed in Dakota County Ordinance No. 110,which states: "Yard Waste"means garden wastes, leaves, lawn cuttings, weeds, shrub and tree waste, and prunings generated at residential, commercial, or public properties. 2. TERM OF AGREEMENT 2.1. This Agreement shall commence on the Effective Date and remain in effect through December 31, 2026. 2.2. At the expiration of the initial contract term, the parties, upon mutual consent, may extend the contract for one (1) initial five (5) year term, and up to two (2) additional two year terms each under prices as may mutually be negotiated for the option years by delivering written notice of its intent to extend the term to DSI at least six(6)months prior to the expiration of the contract term. 2.3. Pursuant to Section 21, infra, The City reserves the right to terminate this Agreement for material breach by DSI subject to Section 19;provided,however, that DSI will be given written notice of such material breach and a thirty (30) business day period to cure before termination is effective. If said material breach is cured within the period, the termination will become null and void. Termination shall notaffect the City's right to make a claim against DSI or its Performance Bond for the damages on account for such a breach. 2.4. No assignment of any rights or obligations under this Agreement shall be made without written approval of the City Council and by mutual agreement of both parties,unless such assignment is to an affiliated entity or subsidiary of DSI. 3. GENERAL COLLECTION REQUIREMENTS 3.1. DSI is declared to be an Independent Contractor and nothing in this Agreement shall be construed to create the relationship of employer and employee between the City and DSI, its agents or its employees. 3.2. DSI shall furnish all labor and equipment as shall be necessary and adequate to insure satisfactory collection,transportation and proper separation and processing of the MSW, Recyclables, Bulky Wastes and Yard Wastes from all residential dwellings and businesses (Premises) in the City. All work to be performed hereunder shall be done so as to protect to the highest extent the public health and safety.DSI shall collect,transport and arrange or provide processing of all MSW, SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 210 of 229 Recyclables, Bulky Wastes and Yard Wastes from all Premises within the corporate limits of the City, as follows: 3.2.1. Licenses and Permits.DSI shall ensure at its own expense that all driver and truck licenses and permits are current and in full compliance with local,state and federal laws and regulations.Any Processing Facility used to handle MSW, Recyclables, Bulky Wastes and Yard Wastes from the City must have current permits and licenses and make the same available upon request by the City. 3.2.2. Compliance with Law. DSI shall comply with all Federal, State, County and City laws, regulations and local ordinances pertaining to the Collection and processing of Recyclables, Solid Waste and Yard Waste. 3.2.3. Frequency of Collection. MSW collection shall be weekly for each Premise.Recyclables collection shall be weekly for each Premise.Bulky Waste collection shall occur at least once every week for premises requesting the service from the City. Yard Waste collection shall be weekly during the season beginning on or about mid-April and continuing through mid-November, weather permitting and as needed. Residents shall place all Carts curbside no later than 7:00 AM on collection day. DSIshall furnish the City and all of its Premises with a written copy of theschedule of collection for each Premise. 3.2.4. Hours of Collection. Collection shall not start before 7:00 a.m. or continue after 5:00 p.m. on the same day. Exceptions to collection hours shall occur only by prior permission of the City. DSI shall request permission from the City for any exception first via telephone and then in writing(email to the City Administrator or designee is acceptable)with an explanation as to the reason for the exception. 3.2.5. Holidays. When a Holiday falls on the day that Collection will normally be made, each subsequent collection day will be delayed one day. It shall be DSI's responsibility to inform residents in a timely manner of any change in the collection schedule as a result of a Holiday. 3.2.6. Delays. DSI shall make every effort to maintain established scheduled pick-ups even though conditions such as weather may be adverse. In no event shall DSI be required or suffer penalty for failure to perform a scheduled pickup when prevented from doing so as the result of an undue accumulation of snow, unsafe driving conditions, and/or other circumstances beyond the reasonable control of DSI.. In such case, collection shall be made on the next day, if reasonably practicable. 3.2.7. Containers.DSI shall provide each residence with a Trash Cart,a clearly distinguished Recycling Cart and when requested by a subscribing customer, a Yard Waste Cart. The cost of providing the Cart is built into the rate of the Agreements and DSI may not charge additional fees for carts. DSI shall be responsible for the maintenance of the Carts and except in the case of abuse and/or misuse by a resident, shall replace damaged or broken Carts free of charge.Upon the termination of this Agreement, DSI shall collect all Carts at DSI's expense. Carts shall be handled with SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 211 of 229 reasonable care to avoid damage and are to be replaced in anupright position with the lids closed. 3.2.8. DoorstepNalet Collection. DoorstepNalet Collection rather than curbside or alley collection must be allowed for senior citizens and persons with decreased mobility for no additional charge with verification of need. 3.2.9. Missed Collections. In the case of alleged missed collections, DSI shall investigate,and, if such allegations are verified,DSI shall then arrange for the Collection of the subject materials no later than 4 p.m. the next business day. 3.2.10. Spills or Leaks. Any contents spilled or fluids leaked from the MSW, Recyclables,Bulky Wastes or the trucks shall be cleaned up immediately in a professional manner. If DSI fails to clean up any scattered or spilled material or leaked material or fluids within three hours after oral or written notice (email is acceptable) from the City, the City may cause such work to be done and deduct the reasonable cost thereof from any payments due and owing DSI, in addition to any other remedies provided herein. 3.2.11. City Property. DSI must provide Trash and Recyclables Collection, at no additional cost to the City, for the properties in Attachment A. Sizes of recyclable containers to be serviced by DSI and frequency of service will be determined by the City. The city may add or delete properties to this property list on an as needed basis. 3.2.12. Fees for Special Events.Cleanup fees and schedules for all special events or other services in the City Parks shall be negotiated between the party arranging the special events and DSI , provided, however, that DSIshall not have exclusive rights to provide service at these events and the parties arranging special events may contract for services with a hauler oftheir choice.DSI will provide containers,transportation and disposal for refuse and recycling at mutually agreeable City sponsored events without compensation. 4. COLLECTION EQUIPMENT AND PERSONNEL 4.1. Provision of Equipment. DSI shall provide all equipment necessary for Collection and transportation of collected Trash,Recyclables,Bulky Wastes and Yard Wastes. All trucks shall be maintained so the material being collected and transported will not be seen and will not blow, fall or leak from the vehicle and fluids will not leak from the trucks. 4.2. Maintenance of Equipment. DSI shall maintain equipment, used in the performance of this Agreement in a clean and sanitary condition and shall at all times operate such equipment in compliance with State law and City ordinances. 4.3. Compliance with Truck Road Weight Restrictions. It shall be DSPs sole responsibility to comply with all road weight restrictions. DSI shall immediately inform the City of any notices of exceeding such restrictions. The City retains the right to inspect and/or weigh DSPs trucks at any time. SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 212 of 229 4.3.1. DSI shall be responsible to notify customers receiving service in alleyways that their service will be provided curbside when road weight restrictions are in effect. 4.4. Personnel. DSI shall retain sufficient personnel and equipment to fulfill therequirements and specifications of this Agreement. DSI`s personnel shall be trained both in program operations and in customer service,and DSI shall insurethat all personnel maintain a positive attitude with the public,and shall: 4.4.1. Conduct themselves at all times in a courteous manner and use no abusive or foul language. 4.4.2. Make a concerted effort to have at all times a presentable appearance and attitude. 4.4.3. Wear a uniform and employee identification badge or name tag. 4.4.4. Drive in a safe and considerate manner. 4.4.5. Manage Carts in a careful manner so as to avoid spillage and littering ordamage to the Cart. Carts shall not be replaced in the street and shall bereplaced in an upright position. 4.4.6. Monitor for any spillage or vehicle leaks and be responsible for cleaning up any litter,breakage or leaks. 4.4.7. Avoid damage to personal or City property. 4.4.8. Not perform their duties or operate vehicles while consuming alcohol or illegally using controlled substances or while under the influence of alcohol and/or such substances. 5. INSURANCE; INDEMNIFICATION 5.1. General Liability. DSI shall maintain Commercial General Liability insurance in a minimum amount of$5,000,000 per occurrence;$5,000,000 aggregate.The policy shall cover liability arising from premises, operations, products-completed operations, personal injury, advertising injury, and contractually assumed liability. The City, including its elected and appointed officials, employees, and agents, shall be endorsed as additional insured,to the extent such liabilities have been assumed by DSI hereunder. Such limits of liability may be satisfied through both primary and excess/umbrella policies, certificates of which will be provided to City upon written request. 5.2. Automobile Liability. DSI shall maintain Business Automobile Liability insurance,including owned,hired,and non-owned automobiles,with a minimum combined single liability limit of$5,000,000. 5.3. Workers' Compensation.DSI shall maintain Workers' Compensation insurance for all its employees in accordance with statutory requirements of the State of Minnesota. DSI shall also carry Employers' Liability Coverage with minimum limits as follows: 1,000,000—Bodily Injury by Disease per employee a $1,000,000—Bodily Injury by Disease aggregate 1,000,000-Bodily Injury by Accident SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 213 of 229 5.4. Pollution Liability Insurance.DSI shall maintain Pollution Liability insurance in a minimum amount of$1,000,000 per occurrence: $2,000,000 aggregate, for claims arising from the discharge, dispersal, release or escape of any irritant of contaminant into or upon land,any structure,the atmosphere,watercourse or body of water, including groundwater. This shall include on and off-site clean up and emergency response costs. 5.5. Certificate of Insurance. DSI shall, prior to commencing any services, deliver to the City Certificate of Insurance as evidence that the above coverages are in full force and effect. The insurance requirements may be met through any combination or primary and umbrella/excess insurance. DSI's policies shall be primary insurance and non- contributory to any other valid and collectible insurance available to the City with respect to any claim arising out of DSI's performance under this Agreement. DSI's policies and Certificate of Insurance shall contain a provision that coverage afforded under the policies shall not be cancelled without at least thirty(30)day's advanced written notice to the City,or ten (10)days' written notice for non-payment of premium. 5.6. Performance Bond. DSI shall obtain a Performance Bond in the amount of 750,000 payable to the City for the use of said City. The Performance Bond shall be signed by DSI with a City-approved Surety Company as surety. The Performance Bond shall at all times be kept in full force and effect.The bond shall be filed with the City Administrator/Clerk or the designee. 5.7. Payments. DSI shall pay all bills or claims for wages, salaries and supplies, incurred in the operation of the collection service. The City has no obligation or responsibility for bills or debts incurred by DSI. 5.8. Indemnification. DSI shall defend, indemnify and save harmless the City from any and all claims and causes of action which may be asserted against the City to the extent caused by negligent act or negligent omission, or any misfeasance or malfeasance of DSI or its affiliates, employees or agents in connection with its performance under thisAgreement. DSI shall defend, indemnify,keep and save harmless the City and its respective officers,agents and employees against any or all suits or claims thatmay be based upon any injury or damage to persons or property that may occur, or that may be alleged to have occurred, to the extent caused by DSI or its affiliates, employees, or agents in the course of the negligent performance of this Agreement, and also any claims to the extent negligently caused by DSI or its affiliates, employees, or agents in connection with: 5.8.1. the Minnesota Environmental Response and Liability Act("MERLA") enacted in 1983: 5.8.2. its federal counterpart, the Comprehensive Environmental Response Compensation and Liability Act of 1980 as amended by the Superfund Amendments and Reauthorization Act("SARA"of 1986(together known as CERCLA): 5.8.3. any administrative rule or statue of Minnesota or any other State: 5.8.4. any common law theory of and other State or the United States: or 5.8.5. claims based upon the clean-up of abandoned or existing sites contaminated or allegedly contaminated with hazardous substances,if any SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 214 of 229 claims described in(a)through(e) are based upon solid waste transported from the City by DSI or his/her subcontractors or his/her or their agents or in connection with any claim based on lawful demands of subcontractor, work person,suppliers;and whether or not the persons injured or whose property was damaged were third parties, employees or DSI or employees of an authorized subcontractor;and DSI shall at his/her own expense defend the City in all litigation,pay all attorneys'feesand all costs and other expenses arising out of the litigation or claim or incurred in connection therewith;and shall,at his/her own expense, satisfyand cause to be discharged such judgments as may be obtained against theCity,or any of its officers,agents or employees. 6. MSW (TRASH) COLLECTION 6.1. Waste Removal. DSI shall provide for the removal of Trash from all Premises in the City. DSI shall offer its services to all residential dwellings and all businesses in the City, without exception, by written notice, describing service schedules and rates and Cart options. Such notice shall be delivered at least annually in a form and content approved by the City. 6.2. Refusal Notice.If any subscribing person places any items out for pickup and the item is not taken by DSI, DSI shall provide notification to the resident of reason(s)for refusal to pick up the item. 6.3. Carts. DSI shall make carts available to each Premise for Trash Collection. 6.4. Required Disposal.Pursuant to MN 115A.46 and 115A.471 all waste collected by DSI in the City shall be delivered to the transfer station, and transported to the Red Wing Resource and Recovery facility or as otherwise as approved by the City. 7. RECYCLABLES COLLECTION 7.1. Single Sort Recycling: DSI shall not require separation of Recyclables by type but shall permit City residents to aggregate all of their Recyclable Materials into the same Cart for collection by DSI. 7.2. Recyclables to be Collected: DSI shall collect at the List of Recyclables as determined by Dakota County in addition to those Recyclables for which it has found or developed markets. 7.3. Additional Recyclable Materials. After maximizing the use of their recycling Cart, residents who have a large amount of Cardboard or other Recyclables may bundle this material up and leave it beside the Recycling Cart for pickup and DSI shall pick up such additional Recyclables at its regular Collection time at no additional charge. Customers may request a second Recycling Cart at a cost not toexceed the approved rate schedule. 7.4. Ownership of Recyclables. All recyclables placed for Collection by residents shall remain the responsibility and ownership of the residents until picked up by DSI. The City requires that all collected Recyclables must be delivered to the Recycling Processing Facility;there shall be no scavenging of materials set out by residents. SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 215 of 229 7.5. Changes to Collection System.DSI shall not make changes to the Single Stream Collection or processing system without written direction of the city. 7.6. Processing of Recyclables. DSI shall haul all collected Recyclables to a Recyclables Processing Facility or end market for sale or reuse, or to an intermediate collection center for later delivery to a Recyclables Processing Facility or end market. A weight ticket shall be received by DSI showing the tonnage of Recyclables collected within the City. Such invoice must be in a form sufficient to qualify the recyclables as having been properly processed for purposes of this Agreement. DSI may not transport the Recyclables to a mixed municipal solid waste disposal facility. DSI or its subcontractors shall not landfill,incinerate,compost or make fuel pellets out of the Recyclable Materials. All costs of transporting and depositing the Recyclables with the Recyclables Processing Facility or the end market shall be at the sole expense of DSI. 7.7. Recycling Revenue Sharing. DSI agrees to take all reasonable measures to maximize revenue from the sale of recyclable materials. If revenue from the sale of recyclables exceeds the cost to process recyclable materials DSI will refund 50%of the net proceeds to the City. 8. YARD WASTE COLLECTION 8.1. DSI shall provide separate yard waste collection as an additional service during the months of mid-April through mid-November,weather permitting.DSI shall be responsible for notifying customers of the beginning and end of yard waste season. 8.2. Yard waste shall be prepared as specified by DSI and shall be collected atcurbside on the same day as Trash collection. 8.3. Yard Waste may not be placed or collected in plastic bags,to comply with Minnesota Statute (M.S. 115A.931, Subd. (c)and M.S. 325E.046). 8.4. Yard waste service shall be made available on an annual subscription basis or on an on-call by the bag basis. DSI shall provide Yard Waste carts to subscription customers. Charges for yard waste services shall be in accordance with the approved rate schedule. 9. BULKY WASTE AND ELECTRONIC WASTE COLLECTIONS 9.1. DSI shall Collect Bulky Waste or Electronic Waste from Premises at the resident's request. Collection shall be made within one(1)calendar week of the request. 9.2. DSI shall provide Collection,processing and marketing or disposal services related to these bulky items and electronic waste. 9.3. DSI shall set their own price schedule for bulky item collection and provide Farmington customers a percentage discount as show in Attachment C. 9.4. The City's ordinance,nor this agreement shall be interpreted to preclude customers from obtaining service from other haulers for bulky waste. SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 216 of 229 10. SOURCE SEPARATED ORGANICS (SSO) COLLECTIONS 10.1. DSI and the City agree to monitor the Dakota County Organics Drop site in Farmington. Should the City determine the need for a curbside collection program, DSI will work with the City to develop a SSO pilot program. 11. Public Education and Outreach 11.1. Education. DSI will assist in the distribution of educational materials in compliance with Dakota County educational requirements related to solid waste. This shall include, but is not limited to,two (2) education/outreach actions per year, which may include direct-mail pieces, Farmington specific recycling education advertising in the City of Farmington Newspaper of Record,literature drops at Premises, or other City-approved options. The method of distribution and content of materials shall be approved by the City in writing prior to distribution. Additional agreed upon education actions may be implemented, such as targeting new residents or recycling incentives programs. 11.2. Outreach. DSI will participate in public outreach events that may include,but are not limited to, annual education day coordinated with Farmington Schools, Earth Day activities, and the Farmington Community Expo. 12. COLLECTION REPORTS 12.1. Weight Records. DSI will keep accurate records of the weights and types of recyclables collected in the City. Collected recyclables will be weighed after completion of a route or at the end of the day,whichever occurs first,on a certified scale. All recyclables and MSW collected in the City shall be weighed separately from recyclables and MSW collected in other geographic subdivisions.A copy of each weight ticket for separated recyclables and for MSW shall be kepton file, as shall records of facilities that the recyclables are taken to and the recyclable markets used for recyclables generated in the City and/or amount of City recyclables stored by those facilities. 12.2. DSI shall participate with the City in tests such as waste sorts to confirm the methodology and accuracy of the above data for weights of MSW and recyclables or to identify opportunities to increase recycling. 12.3. Quarterly Reports. Upon request, DSI will submit quarterly reports to the City. Reports shall be due to the City by the fifteenth(15th)day of April,July, October and January. DSI is encouraged to include in its reports recommendations for continuous improvement in the City's recycling program (e.g.,public education, business recycling, etc.). DSI agrees to make one annual report at a City Council meeting. At a minimum,DSI shall include the following information in these reports: A. Total tons of recyclables and MSW collected. "Total tons" is defined as the combined number of tons recorded from the total actual recyclable and MSW pick-ups (stops) recorded for each of the three (3) months of the reporting quarter. B. Method used to collect and report total quantities of recyclables and MSW SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 217 of 229 collected. C. Available pick-ups(stops). "Available pick-ups"is defined as the number of residential accounts billed for each of the three (3) months of the reporting quarter. D. Total number of MSW pick-ups(stops),"defined as the combined number of actual MSW pick-ups recorded for each of the three (3) months of the reporting quarter. E. Total number of Recycling Pick-ups (stops) made, defined as the combined number of actual Recycling pick-ups recorded for each of the three(3)months of the reporting quarter. F. Total number of Bulky Waste Pick-ups made, and Total number of Electronics Waste Pick-ups made, defined as the combined number of actual pick-ups recorded for each of the three(3)months of the reporting quarter. G. Total number of Yard Waste Pick-ups made, defined as the combined number of actual Recycling pick-ups recorded for each of the three(3) months of the reporting quarter. H. Log of all complaints,including the nature of the complaints,to include the following: 1. Names, addresses, and contact numbers of the complainants; 2. The date and time received; 3. DSI`s response; and the date and time of the response. 4. Log of addresses of premises that did not put out recyclables containers that month. I.Education materials provided to City residents that quarter. J.Suggestions for improvements to the City's recycling program. 12.4. Monthly Reports.Upon request,DSI shall also submit a report monthly in compliance with Section 14.3,Customer Service. 12.5. Access to Records. DSI shall provide to the City during normal business hours, reasonable access to non-confidential/non-privileged records to include books, documentation,papers, weigh tickets and other records that are directly pertinent to the required reports required by this Agreement.DSI shall document and retain dated market weight receipts of recyclable materials sold for the last three years,which upon request will be made available to the City for review. 12.6. The City may request and DSI must provide in electronic format;the name,address, phone number,email and service level(s)for each premises in the City. 13. BILLING 13.1. Billing. DSI shall collect all charges from each Premise for its Collection services. 13.2. Contracts for Additional Collections. DSI may, independently of this SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 218 of 229 Agreement,contract with any premise to collect Trash or Solid Waste excluded from the mandatory Collection by the Agreement. DSI 's charge for the servicesshall be listed in Attached Exhibit A,subject to change with the written approvalof the City. If the Collection is not listed, the price shall be negotiated between DSI and the customer. 13.3. Delinquent Accounts. DSI may handle delinquent accounts in the same manner as its other customers. This may include suspension of service. DSI shall provide notice when it has suspended service on an account. 13.4. Extended Leave Discontinuance. A Premise can obtain a discontinuance of service of more than a month but less than six months for an extended leave or vacancy. There shall be no charge for suspending service. 13.5. Collection Fees. Volume/weight-based Trash fees must be offered to each Premise (MN§I15A.93 subd.3). The rate that DSI shall charge will be in accordance with the approved rate schedule. Other rates not included in the rate schedule in Attachment C shall be mutually agreed upon. 13.6. Rate increase. City or DSI may propose amendments to the rate schedule before September 15 of any given year for the next calendar year. The parties shall enter into negotiations in good faith and any new rate changes shall be reduced to writing in the form of an amendment to this Agreement. Rate increases may not take effect during a billing cyclefor any customer.Rate increases must take effect on the next billing cycle after the rate increase is approved. 13.7. Late fees. DSI will charge no more than $10.00 per month in late fees, with the maximum amount of late fees due and owing at any given time capped at$30.00. DSI agrees to make good faith efforts to reduce or eliminate late fees by utilizing payment plans, grace periods, etc.... 14. INDEPENDENT CONTRACTOR 14.1. Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating, or establishing the relationship of employer/employee between the parties.DSI shall,at all times,remain an independent contractor with respect to the services to be performed under this Agreement. Any and all employees of DSI or other persons engaged in the performance of any work or services required by DSI under this Agreement shall be considered employees or subcontractors of DSI only and not of the City; and any and all claims that mightarise, including worker's compensation claims under the Worker's Compensation Act of the State of Minnesota or any other state,on behalf of said employees or other persons while so engaged in any of the work or services provided to be rendered herein,shall be the sole obligation and responsibility of DSI. 15. CUSTOMER SERVICE REQUIREMENTS 15.1. Complaints. DSI shall provide staffing of a telephone equipped office to receive missed Collection complaints and other complaints between the hours of 7:30 a.m. until 5:00 p.m. Monday through Friday. DSI shall have an answering machine or voice mail system activated to receive phone calls after hours. The SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 219 of 229 address and telephone number of the office shall be given to the City in writing, with ten(10)days prior notice of a change therein.DSI shall also allow complaints to be made electronically(by e-mail). 15.2. Immediate Complaint Response. Complaints on service will be taken and collected solely by DSI. The City shall route all customer service calls it receives regarding solid waste operations to DSI. DSI is responsible for corrective actions. DSI shall answer all complaints courteously and reasonably promptly. 15.3. Monthly Customer Service Report to City. Upon request, each month DSI shall provide the City with a report of all customer complaints,the nature of these complaints and a description of how each complaint was resolved. The names of the complainants and contact numbers or e-mail addresses must also be included. 15.4. Failure to Perform. Subject to any other provision herein, in the event DSI fails to collect the MSW, Recyclables, Bulky Wastes, and Yard Waste as required by this Agreement, the City may,at its option,hire such labor and equipment as may be necessary to collect and dispose of such MSW, Recyclables and Yard Waste after DSI is given five(5)business days to remedy the situation. The City may,at the City's sole option, terminate this Agreement in accordance with Article Eighteen (18). In the event remedy does not occur, DSI shall reimburse the City for all reasonable collection expenses the City incurs above and beyond the amounts the City is obligated to pay for such collection under this Agreement or the City shall utilize the Performance Bond for such expenses. 15.5. Location of Customer Service Center. DSI agrees to ensure their customer service center is co-located with their primary operations center(the operations location primarily servicing Farmington) for the duration of this contract. 16. SPECIAL CONDITIONS 16.1 Cardboard Dumpster at City Facilities. DSI agrees to maintain dumpsters for cardboard recycling for public use at a location to be determined by the City, at no cost to the City. The size, number and frequency of collection for this dumpster shall be determined by the City and may be dependent upon seasonal needs (i.e.holiday season may require additional collection or containers). 16.2 Routing and Collection Schedules. The City must approve all routing and collection schedules.DSI may propose routing and collection changes from time to time as becomes necessary or apparent for efficient collection.DSI is required to communicate routing and collection changes to customers. 16.3 Christmas Tree Collection.DSI agrees to provide Christmas tree collection for bare Christmas Trees (lights, ornaments,tinsel, etc.... removed) during the first two weeks of each year.Fees for Christmas tree collection will be in accordance with the approved rate schedule. Customers with subscription yard waste service shall receive Christmas tree collection included in the cost of subscription yard waste. 16.4 Farmington Specific Webpage and Social Media. DSI agrees to maintain a webpage on their website with information specific to Farmington residents. DSI also agrees to, upon request, establish Farmington specific social media SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 220 of 229 page(s)todistribute information to Farmington residents. 16.5 Contact information. DSI agrees to provide contact information to the City of Farmington for the following: at least one employee of DSI authorized to manage operational issues that arise, at least one employee of DSI authorized to managecustomer service issues as they arise, at least one employee of DSI authorized toresolve contract related issues as they arise. 16.6 Park Recycling. DSI and the city agree that DSI will provide for the necessary labor,equipment and processing at no charge to the city for recycling in the city's parks. This section extends to any city park land the city deems to be eligible for recycling services.Recycling in parks is expected to be a joint effort between the city and DSI to ensure that usage is sufficient to merit recycling in a given park, that the recyclable loads collected in parks are "clean" and that recycling receptacles are accessible to DSI on a curbside basis. 17. Purchase of City Assets 17.1 Refuse Cart Ownership. DSI agrees to purchase from the City all refuse carts owned by the city as detailed on Attachment B. The City shall provide a bill of sale documenting such purchase no later than December 31, 2021. Notwithstanding the foregoing, if City early terminates this Agreement prior to expiration of the term then City agrees to buy-back such carts for a purchase price of$10.00 and DSI shall provide a bill of sale for such buy-back no later than thirty days following such termination. 17.2 Vehicle and Equipment Ownership.If applicable, DSI agrees to purchase from the City the vehicles and equipment owned by the City as detailed on Attachment B. The City shall provide ownership documents and any existing/extended warranty documents to DSI upon receiving payment no later than December 31, 2021. 17.3 As is.Assets are being transferred on an"AS IS" basis. City disclaims any and all warranties, express or implied, regarding the assets, including,but not limited to,their physical condition, and makes no warranty or merchantability or fitness of the assets for any particular purpose, express or implied.DSI releases City from any and all claims at law or equity regarding the acquired assets and their physical condition,merchantability, or fitness for any particular purpose. 18. ASSIGNMENT AND SUBCONTRACTING 18.1. DSI shall not assign or subcontract except to affiliates of the Contractor this Agreement or any interest therein or any privilege or right granted therein without the prior written consent of the City. Consent to one assignment or subcontract shall not be deemed to be consent to any subsequent assignment or subcontract. 19. MISCELLANEOUS 19.1. Liquidated Damages. Subject to any other provision herein, including the requirement to provide DSI notice and an opportunity to cure, DSI agrees, in addition to any other remedies available to the City, that the City may withhold SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 221 of 229 payment from DSI in the amounts specified below as liquidated damages for failure of DSI fulfilling its obligations: 19.1.1. Failure to respond to legitimate service complaints within 24 hours in areasonable and professional manner—fifty dollars ($50)per incident. 19.1.2. Failure to collect properly notified missed collections—two hundred and fifty dollars ($250)per incident. 19.1.3. Failure to provide monthly and/or annual reports or requested data—one hundred dollars ($100)per incident. 19.1.4. Failure to complete the collections within the specified timeframes without proper notice to the City—one hundred dollars($100)per incident. 19.1.5. Failure to clean up spills during collection operations—two hundred fifty dollars ($250)per incident. 19.1.6. Failure to report on changes in location of Recyclables Processing operations two hundred fifty dollars ($250)per incident. 19.1.7. Failure to collect Farmington's List of Standard Recyclables within one month of notification of a change to the List one hundred dollars($100) per week of non-collection. 19.1.8. Failure to maintain current County licenses to haul MSW,Recyclables, Organics,Bulky Wastes or Yard Waste five hundred dollars($500)per day. 19.1.9. Notwithstanding anything in the foregoing, the City shall have a maximum of sixty (60) days to raise the failure of DSI's obligations, by written notice to DSI. In the event such failure is not timely raised, the City waives the right to impose such Liquidated Damages. 19.2. Waiver.The waiver by the City of any breach or violation of any term covenant, or condition of this Contract shall not be a waiver of any subsequent breach or violation of the same or any other term, covenant, or condition hereof. 19.3. Binding Effect.The terms, covenants,and conditions of this contract shall apply to, and shall bind and inure to the benefit of the parties, their successors, and assigns. 19.4. Data Practices. DSI agrees to comply with the Minnesota Government Data Practices Act and all other applicable state and federal laws relating to data privacy or confidentiality. DSI must immediately report to the City any requests for third parties for information relating to this Agreement. The City agrees to promptly respond to inquiries from DSI concerning data requests. DSI agrees to hold the City,its officers,and employees harmless from any claims resulting from DSI`s unlawful disclosure or use of data protected under state and federal laws. 19.5. Force Majeure: Whenever a period of time is provided for in the Contract for either the City or DSI to so or perform any act or obligation,neither parry shall be liable for any delays or inability to perform due to causes beyond the control of said party such as war, riot, unavoidable casualty or damage to personnel, materials or equipment, fire, flood, storm, earthquake,tornado or any act of God, SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 222 of 229 but not strike or lockout. The time period for the performance in question shall be extended for only the actual amount of time said party is so delayed. 19.6. Excluded Waste:Notwithstanding anything herein to the contrary:(a)Contractor shall have no obligation to collect any material which is or contains, or which Contractor reasonably believes to be or contain, radioactive, volatile, corrosive, highly flammable, explosive, biomedical, infectious, biohazardous, toxic or hazardous material as defined by applicable federal, state or local laws or regulations ("Excluded Waste"); (b) if Contractor finds what reasonably appears to be discarded Excluded Waste,Contractor shall promptly notify the City and the producer of the Excluded Waste, if the producer can be readily identified; and(c) title to and liability for any Excluded Waste shall remain with the producer of the Excluded Waste, even if Contractor inadvertently collects or disposes of such Excluded Waste. Bulky Wastes, Electronic Waste, Mixed Municipal Solid Waste, Problem Material Waste, Recyclables, Source Separated Organics, Solid Waste, and Trash all exclude Excluded Waste. 19.7. The City and residents must comply with any description of and/or procedures with respect to removal of contaminants or preparation of recyclable materials and organic materials as reasonably provided by Contractor. If the City fails to do so, they shall not be considered Recyclables or Source Separated Organics, as applicable, and Contractor may decline to collect such materials without being in breach of the contract. Contractor shall not be responsible for and has not made any representation regarding the ultimate recycling of Recyclables by any third party facilities. 19.8. The rights granted to Contractor under the contract shall be exclusive. The City may, in its sole discretion, enforce the exclusivity provisions of the contract against third-party violators, taking into account the cost of doing so and other factors. Contractor may independently enforce the exclusivity provisions of the contract against third-party violators, including, but not limited to, seeking injunctive relief and/or damages, and the City shall use good-faith efforts to cooperate in such enforcement actions brought by Contractor. The City shall use its best efforts to adopt ordinances, rules or regulations that have the effect of requiring third parties, including, without limitation, customers, to comply with the provisions of the contract, including,without limitation,the exclusive service rights granted to Contractor pursuant to the agreement. 19.9. Notwithstanding anything herein to the contrary, to the extent supplied by Contractor,in the event that a waste container becomes lost,unsightly,unsanitary, broken,or unserviceable because of the acts or omissions of the City or a resident excluding normal wear and tear), the City or relevant customer will be charged for the resulting repairs or replacement and such amounts will be paid to Contractor upon demand. 19.10. Any equipment furnished hereunder by Contractor shall remain the property of Contractor; however, the residents and the City (as applicable) shall have care, custody and control of the equipment while at the service locations. Residents shall not alter the equipment and shall use the equipment only for its proper and intended purpose.Residents and the City must provide unobstructed access to the equipment on the scheduled collection day.The word"equipment"as used herein SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 223 of 229 shall mean all containers used for the storage of non-hazardous solid waste. 19.11. Notwithstanding anything herein to the contrary,Contractor may pass through and the customers shall pay to Contractor any documented increases in disposal fees, increases in Contractor's costs due to changes in local, state or federal rules, ordinances or regulations applicable to Contractor's operations or the services provided hereunder, and any increases in and newly imposed taxes, fees or other governmental charges assessed against or passed through to Contractor (other than income or real property taxes). 19.12. City warrants that the Residents' and City's pavement, curbing or other driving surface or any right of way reasonably necessary for Contractor to provide the services described herein are sufficient to bear the weight of all of Contractor's equipment and vehicles reasonably required to perform such services. Contractor will not be responsible for damage to any such pavement,curbing,driving surface or right of way, and City agrees to assume all liabilities for any such damage, which results from the weight of Contractor's vehicles providing service at Residents' and City's location. 20. PERFORMANCE REVIEW Upon receipt of Contractor's annual report,the City shall schedule an annual meeting with Contractor. The objectives of this annual meeting will include(but not be limited to): 20.1. Review DSI's annual program and material report. 20.2. Review efforts DSI has made to expand participation in the waste diversion programs (Recycling, SSO, Yard Waste). 20.3. Review DSI's performance based on feedback from customers to City staff. 20.4. Review Contractor's recommendations for improvements to the City's program, including enhanced public education and other opportunities. 20.5. Review staff recommendations for improving DSI's service. 20.6. Discuss other opportunities for improvement in the remaining years of the current Agreement. 21. TERMINATION The City may terminate this Agreement if DSI fails to fulfill its obligations under the Agreement in a proper and timely manner, or otherwise violates the terms of the Agreement if the default has not been cured after thirty (30) days written notice has been provided. The City may also terminate this Agreement immediately if DSI fails to maintain County permits requiredto collect and transport MSW, Recyclables, Source Separated Organics or Yard Waste. The Cityshall pay DSI all compensation earned prior to the date of termination minus any damages and costs incurred by the City as a result of the breach. If the Agreement is cancelled or terminated, all finished or unfinished documents, data, studies, surveys, maps, photographs, reports or other materials prepared by DSI under this Agreement shall, at the option of the City, become the property of the City,and DSI shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 224 of 229 IN WITNESS WHEREOF,the parties have hereunto executed this Agreement,by their officers,as of the day and year first above written. CITY OF FARMINGTON DICK'S SANITATION SERVICE,INC. Bye--- By Jos—&ua Hoyt,M r L By. David McKnight, Administrator STATE OF MINNESOTA SS. COUNTY OF (,c c v ) Subscribed and sworn to before me by Ile y't and HcL,v'j re- ,respectively,the Mayor and City Administrator of the City ofa MinaMtnensotamunicipalcorporationthis 5` 1" Day of,tfe, n.6N- ,20 7MMAAMULLERS NOTARY PUBLIC MINNESOTA Nofary Public My COmm45ion Expires Jen 31,2025 STATE OF MINNESOTA SS. COUNTY OFL `J ' (ice! Subscribed and sworn to before me on behalf of DSI by al's,& T( i p I the 4n(--- jMOK of DSI ,a Minnesota corporation(Title) this t N\ Day of K)t tUA- 2Q-Ll SUSAN J WMER NOTARY PUBLIC MINNESOTA My Commissian Expires Jam 31,2025 Notary Public F SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 225 of 229 Attachment A City Facilities This list is provided for reference. The city and DSI both recognize that there will be changes atthe discretion of the city in service locations, service size and frequency depending on need anduse of facilities. Seasonal collections shall be April—November each year, as determined by weather and use. Facility and Location Type of Service&Estimated Service Level City Hall Trash: 1 300 gallon 2x/wk Tu&F 430 Third Street Recycling:2 yards lx/wk Organics: 195 gallons EOW Rambling River Center Trash: 1 300 gallon 2x/wk Tu&F 325 Oak Street Recycling:2 95 gallons EOW Organics: 195 gallons lx/mo Maintenance Facility Trash: 1 300 gallon 2x/wk Tu&F 19650 Municipal Drive Recycling: 4 yards lx/wk Police Station Trash: 1 300 gallon 2x/wk Tu&F 19500 Municipal Drive Recycling:4 yard EOW Fire Station#1 Trash: 1 300 gallon lx/wk W 21625 Denmark Avenue Recycling: 195 gallon EOW Fire Station#2 Trash: 1 300 gallon lx/wk W 19695 Municipal Drive Recycling: 195 gallon EOW Schmitz-Maki Arena Trash: 1 300 gallon 3x/wk M/W/F(changes 114 Spruce Street seasonally) Recycling:2 yards EOW Organics:temporarily discontinued Rambling River Park Trash:2 300 gallons 2x/wk M&Th 17 Elm Street Recycling:n/a Feely Fields Trash: 3 300 gallons 2x/wk M&Th 21250 Denmark Avenue Recycling:n/a Liquor Store north Trash:2 300 gallons M&Th 18350 Pilot Knob Recycling: Liquor Store#1 Trash:2 300 gallons M&Th 923 8`h Street Recycling: 6 yards 2x/wk SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 226 of 229 Attachment B Transition of Assets Description of Asset Purchase Price 2006 Perterbilt 320 with Rapid Rail 50,000.00 2008 Perterbilt 320 with Rapid Rail 50,000.00 2014 Perterbilt 320 with Rapid Rail 127,500.00 2017 Perterbilt 320 with Rapid Rail 170,000.00 2019 Autocar with Labrie Automizer 210,000.00 Carts—35 Gallon 20,000.00 1,000 carts @$20.00 per cart Carts—65 Gallon 56,325.00 2,500 carts @$22.53 per cart Carts—95 Gallon 91,278 3,300 carts @$27.66 per cart Total Assets 775,103.00 SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 227 of 229 Attachment C Rates and Charges Residential Service Rates Monthly Pricing Cart Size 2022 2023 2024 2025 2026 Trash service weekly 35 Gallon $ 14.82 $ 15.26 $ 15.72 $ 16.19 $ 16.68 Trash service weekly 65 Gallon $ 19.78 $ 20.37 $ 20.98 $ 21.61 $ 22.26 Trash service weekly 95 Gallon $ 24.28 $ 25.01 $ 25.76 $ 26.53 $ 27.33 Recycle Service weekly 35 Gallon $ 7.25 $ 7.47 $ 7.69 $ 7.92 $ 8.16 Recycle Service weekly 65 Gallon $ 7.25 $ 7.47 $ 7.69 $ 7.92 $ 8.16 Recycle Service weekly 95 Gallon $ 7.25 $ 7.47 $ 7.69 $ 7.92 $ 8.16 Quarterly Pricing Trash&Recycling Weekly 35 Gallon $ 66.21 $ 68.20 $ 70.24 $ 72.35 $ 74.52 Trash&Recycling Weekly 65 Gallon $ 81.09 $ 83.52 $ 86.03 $ 88.61 $ 91.27 Trash&Recycling Weekly 95 Gallon $ 94.59 $ 97.43 $ 100.35 $ 103.36 $ 106.46 Optional Seasonal Yard Waste 195 Gallon 1 $ 129 1 $ 133 $ 137 $ 141 1 $ 145 Commercial Service Rates Container Monthly Pricing Size 2022 2023 2024 2025 2026 Trash service weekly 1 yd 51.13 $52.66 $54.24 $55.87 $57.54 Trash service weekly 1.5 yd 72.52 $74.70 $76.94 $79.25 $81.63 Trash service weekly 3 yd 125.68 $129.45 $133.33 $137.33 $141.45 Trash service weekly 4 yd 178.83 1 $184.19 $189.72 $195.41 $201.27 Trash service weekly 6 yd 231.98 1 $238.94 $246.11 $253.49 $261.10 Trash service weekly 8 yd 285.13 $293.69 $302.50 $311.57 $320.92 Trash service weekly 10 yd $338.29 $348.44 $358.89 $369.65 $380.74 Quarterly Pricing Trash service weekly 1 yd 153.38 $157.98 $162.72 $167.60 $172.63 Trash service weekly 1.5 yd $217.57 $224.10 $230.82 $237.74 $244.88 Trash service weekly- 3 yd 377.03 $388.34 $399.99 $411.99 $424.35 Trash service weekly 4 yd 536.49 1 $552.58 $569.16 $586.24 $603.82 Trash service weekly 6 yd 695.95 $716.83 $738.33 $760.48 $783.30 Trash service weekly 8 yd 855.40 $881.06 $907.49 $934.72 $962.76 Trash service weekly 10 yd $1,014.86 $1,045.31 $1,076.66 $1,108.96 $1,142.23 SOLID WASTE SERVICES AGREEMENT City of Farmington,MinnesotaPage 228 of 229 Commercial Service Rates (Cont.) Container Monthly Pricing Size 2022 2023 2024 2025 2026 Recycling service weekly 1 yd 35.79 $36.86 $37.97 $39.11 $40.28 Rec clin service weekly 1.5 yd 50.77 $52.29 $53.86 1 $55.47 $57.14 Recycling service weekly 3 yd 87.97 $90.61 $93.33 $96.13 $99.02 Recycling service weekly 4 yd 125.18 $128.94 $132.80 $136.79 $140.89 Recycling service weekly 6 yd 162.39 $167.26 $172.28 $177.45 $182.77 Rec clin service weekly 8 yd 199.59 $205.58 $211.75 $218.10 $224.64 Recycling service weekly 10 d 236.80 $243.90 $251.22 $258.76 $266.52 Quarterly Pricing Recycling service weekly 1 yd 107.37 $110.59 $113.90 $117.32 $120.84 Recycling service weekly 1.5 yd 152.30 1 $156.87 $161.57 $166.42 $171.41 Recycling service weekly 3 yd 263.92 $271.84 $279.99 $288.39 $297.05 Recycling service weekly 4 yd 375.54 $386.81 $398.41 $410.37 $422.68 Recycling service weekly 6 yd 487.17 $501.78 $516.83 $532.34 $548.31 Recycling service weekly 8 yd 598.78 $616.74 1 $635.25 $654.30 $673.93 Recycling service weekly 10 yd 710.40 $731.71 1 $753.67 $776.28 $799.56 Other Charges Trip Charge: $15 per trip Extra Bag Charges*: $5 minimum charge,$2.50 per bag. Container Replacement Charge(customer caused damage): $55 Bulk Item Discount: 9% Rates do not include MN Tax on trash-Residential 9.75%,Commercial 17.00% SOLID WASTE SERVICES AGREEMENT City of Farmington,Minnesota Page 229 of 229