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Home My WebLink About06.21.10 Council Packet City of Farmington 430 Third Street Farmington, MN 55024 Mission Statement Through teamwork and cooperation. the City of Farmington provides quality services that preserve our proud past and foster a prom is ingfuture. FARMINGTON CITY COUNCIL Todd Larson, Mayor Terry Donnelly Julie May Christy Fogarty Steve Wilson AGENDA REGULAR CITY COUNCIL MEETING JUNE 21, 2010 7:00 P.M. CITY COUNCIL CHAMBERS Action Taken 1. CALL TO ORDER 7:00 P.M. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4, APPROVE AGENDA 5. ANNOUNCEMENTS/COMMENDATIONS a) Senator Pat Pariseau b) Representative Pat Garofalo Legislative Update c) Hockey Association d) Farmer's Market Update Recognized Information Received Information Received Information Received 6. CITIZEN COMMENTS / RESPONSES TO COMMENTS (This time is reservedfor citizen comments regarding non-agenda items, No official Council action can be taken on these items, Speakers are limited to five minutes to address the Council during "Citizen Comment" time.) a) Response to Mr. David Pritzlaff Information Received 7. CONSENT AGENDA a) Approve Council Minutes (6/7/10 Regular) (6/14/10 Workshop) b) May 2010 Financial Report - Finance c) Appoint Election Judges - Administration d) Approved Updated MAAG Joint Powers Agreement - Police e) Approve Business Associate Agreement - Human Resources f) 2010 Summer Seasonal Staff Appointments - Human Resources g) Acknowledge Resignation Administration - Human Resources h) Approve Termination Administration - Human Resources i) Approve Bills Approved Information Received R36-10 Approved Approved Information Received Acknowledged Pulled Approved REGULAR AGENDA (The Council takes a separate action on each item on the Regular Agenda, Jfyou wish to address the Council regarding any or all of the items on the Regular Agenda, please address the item when the item is discussed. Speakers will be given at least three minutes to speak per item, Additional time may be granted to speakers representing two or more persons.) 8. PUBLIC HEARINGS a) Approve Therapeutic Massage License - Administration 9. A WARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICA TIONS a) Approve Walnut Street Change Order - Engineering b) Dakota County CIP - Engineering 11. UNFINISHED BUSINESS a) Amend 2010 Fee Schedule to Include Development Fees - Engineering b) Approve Arena Improvement Project Change Order - Parks and Recreation c) 2011 - 2015 CIP - Engineering d) Approve Exchange Bank Settlement - Administration 12. NEW BUSINESS 13. COUNCIL ROUNDTABLE a) Dew Days b) Facebook & Twitter Update - Human Resources Approved Approved Information Received Ord 010-624 Approved Information Received Approved Information Received Twitter Page Available 14. ADJOURN Persons with a disability may request a reasonable accommodation by contacting the City Administrator's office at 651-280-6803. Request should be made 24 hours in advance or as early as possible to allow time to arrange accommodation, Table of Contents Agenda, , . . . . . . . . . . . 3 Response to Mr. David Pritzlaff Memo . , . . . , . . . . . 5 Approve Council Minutes (617/10 Regular)(6/14/1 0 Workshop) June 7 Council Minutes. . . . 7 June 14 Workshop Minutes. , 16 May 2010 Financial Report May Financial Memo . . 22 May Financial Report . . 25 Appoint Election Judges Adopt Resolution - Appointing Primary Election Judges . 29 Resolution - Appointing Primary Election Judges. . 30 Approve Revised MMG JPA 10JUN21 MMG JPA, , . . . , . . , . . . , . , , 32 FINAL JPA MMG - 2010. . . , . . . , , , , , , , 33 Approve Business Associate Agreement - Human Resources Council memo, , . . . , . , , , , , . 52 BM..........,...... .53 2010 Summer Seasonal Staff Appointments Council Memo. . . . . . . . . , . . 62 Acknowledge Resignation - Administration Council memo. . . . . , , . . . 64 Approve Termination - Administration Term_Hewitt. . 65 Approve Bills Bills , , , , . . 66 Approve Therapeautic Massage License Approve Therapeautic Massage License , . 90 Approve Walnut Street Change Order #1 Walnut Street Change Order #1 062110 . 91 Walnut Street Change Order #1. . . , , , 93 2011-2015 Dakota County CIP 2011-2015 Dakota County CIP 062110, .95 Amend 2010 Fee Schedule to Include Development Fees Fee Schedule Amendment-Development Fees 062110, . 97 Fees Ord 2010 Permits Subdivisions 062110. . , .98 Surface Water Management Fee Options 062110 . 101 Approve Arena Improvement Project Change Order Arena Change Order Memo. . . . . 102 Change Order Spreadsheet. . . , . . . . . . 104 2011-2015 Capital Improvement Program 2011-2015 Capital Improvement Program 062110 , , 105 1 2011-2015 CIP Front 062110, . . . , . . . , Area-WideAssessments 062110 . . . . . , . Remaining Area-Wide Assessments 062110 . CSAH31NRTH PI Report 06152010 , ASHSTIMPROV PI Report 06152010, ELMSTIMPROV PI Report 06152010, Approve Exchange Bank Settlement Cover Memo. . . . , , Settlement Agreement. . . , . 106 . 107 .108 . 109 .110 . 111 , 112 , 113 2 00-- City of Farmington 430 Third Street l'armington, Minnesota 651.280.6800. Fax 651.280,6899 www.ci.fdrm;.I1gnm.nm.LL.I TO: Mayor and CounciImembers FROM: Peter J. Herlofsky, Jr., City Administrator SUBJECT: Response to Mr. David Pritzlaff DATE: June 21, 2010 Following is the response to questions Mr. Pritzlaffraised at the June 7, 2010, Council Meeting. Please note that no copies are provided, but access to information is noted. If you would like copies of all pages shown, it will be necessary to request $.25/page in advance. The estimated cost at this time is $1.25 based on four pages of the City budget and one page of Chapter 7 of the City Code. If you have any questions, please let me know. Question - Provide total OT for plowing of trails for this past winter. - Provide total Solid Waste costs for City for everything including equipment, salaries, maintenance, tires, gas, payment on Maintenance Facility. - Is $1,874,000 in budget total cost of operating Solid Waste? - Transferred $112,000 out of Solid Waste into General Fund. Are we charging residents $112,000 too much? Cmuller/Herlofsky/Council memoslPritzlaffResponse 6.21-10 Answer The total OT for Park snowplowing was $2,814. It is impossible to determine what portion of this is for trails. This aT was for all Park snowplowing as well as Arena Maintenance. City Budget pages 196-198 $1 for copies Yes, the only item not shown here is depreciation expense. No, the solid waste fund is run like a business. If they were a private business, they would have to hire their own administrative staff (i.e. payroll, finance, administrator, computer staff: etc.) and pay for their own computer system and utilities (i.e. electric, gas, etc.) The amount transferred to the General fund covers the cost of administrative overhead. The amount transferred for this purpose is $63,996. The remaining $48,552 is transferred to the debt service fund to pay for their portion of the Utility Revenue bond issued in 2001 to fund the maintenance facility. 5 - Todd Reiten mentioned the City would still The services mentioned above. Ifwe did not have to levy $125,000 for services received. charge the solid waste department, we would What services? still need to pay for their administrative expenses through the levy. This number would actually be higher than $125,000. - Why not cutting grass on undeveloped lots The City Code is available on the website. The (Swanson Acres). Provide copy of ordinance. weeds ordinance is under Title 6, Chapter 7. $.25 for copy. - At April 19, meeting provide note passed from Fogarty to Larson during Walnut Street discussion. - Deputy Registrar Office These items still have to be determined. What is cost? ProfItability? Amount of traffic generated? Have to levy for it? Provide exact deadline to approve resolution. ACTION REOUESTED For Council's information. Respectfully submitted, Peter J. Herlofsky, Jr. City Administrator 6 7~ COUNCIL MINUTES REGULAR June 7, 2010 1. CALL TO ORDER The meeting was called to order by Mayor Larson at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE Mayor Larson led the audience and Council in the Pledge of Allegiance. 3. ROLL CALL Members Present: Menrrbersi\bsent: Also Present: Audience: Larson, Donnelly, Fogarty, May, Wilson None Joel Jamnik, City Attorney; Peter Herlofsky, City Administrator; Teresa Walters, Finance Director; Randy Distad, Parks and Recreation Director; Lisa Shadick, Administrative Services Director; Brenda Wendlandt, Human Resources Director; Cynthia Muller, Executive Assistant Beve Preece, Eric Speckan, Tom Jensen, David Pritzlaff Mayor Larson called for a moment of silence for former Fire Chief Ken Kuchera. 4. APPROVE AGENDA Councilmember May pulled items 7i) Approve Waiving Fees for Dew Days, 7j) Approve Waiving Fees for Farmer's Market, 7n) Bills for discussion. City Attorney Jamnik pulled item 11a) Exchange Bank Settlement as the documents have not been signed by the other party. City Administrator Herlofsky pulled item 71) Approve Transfer of308 EIm Street from the City to the EDA as it is not necessary. MOTION by Fogarty, second by Wilson to approve the Agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS a) Ambulance Viewing and AlIina Presentation - Susan Long Ms. Susan Long, Site Lead for the ALF operation for Allina Medical Transportation gave a report on their activities for the past year. 6. CITIZEN COMMENTS a) Response to Mr. Colin Garvey Mr. Garvey did receive staff's response and will follow-up at the next Council meeting. Mr. David Pritzlaff: 20255 Akin Road, stated his comments were an extension from the June 1,2010, budget workshop. Mr. Pritzlaffasked for the following information: - A total on the overtime for plowing the trails this past winter. - Regarding Solid Waste costs, he had previously requested a total of what solid waste costs the City including everything; trucks, payment on Maintenance Facility, tires, wages, gas, maintenance, etc. He noted the 2010 budget states $1,874,000 for solid waste and asked if that was the total cost to operate Solid Waste. At the budget workshop, it 7 Council Minutes (Regular) June 7, 2010 Page 2 was discussed that $112,000 was transferred out of Solid Waste into the general fund and he assumed that meant there was $112,000 in profit. If so, are we charging the residents $112,000 too much? Municipal Services Director Reiten had stated even ifwe did not have Solid Waste, we would still have to levy $125,000 for services received. Mr. Pritzlaff asked, what are those services? - Regarding cutting grass on undeveloped lots. He noted there are some undeveloped lots where grass and weeds are getting high and asked why we are not enforcing the ordinance to cut grass. Mayor Larson stated the ordinance changed last year and Mr. Pritzlaffwill be provided with a copy. Ifstaffreceives a complaint, will the grass be cut? He has an area near his home (Swanson Acres) that is not cut. It does not make the neighborhood look good. - He had requested information be made public during a discussion on the Walnut Street project. As residents were at the podium CounciImember Fogarty passed a note to Mayor Larson and Mr. Pritzlaffrequested their packets be made public so residents know what was written. - Mr. Pritzlaffthen asked to comment on the Deputy Registrar Office. Mayor Larson stated they are in the preliminary stages of determining what is needed for that office. Mr. Pritzlaffasked if that is the case, why are we approving anything. He understood we have until December 31, to tell the State yes or no whether we want this. We are going to pass something without all the information. It has been said in previous meetings that Council does not want to approve something without all the information. The memo states the budget impact is not totally known, but there are some startup costs. Ifwe don't know the costs, why would we even approve a portion of it? Mr. Pritzlaff asked what is the startup cost? What is the profttability? What is the traffic flow? He would like to see these answers before anything is approved. What kind of money do we have in the budget for this? Are we going to levy for it? It is another business to the City; just like Solid Waste and Liquor Operations. Anyone that opens a business gets all this information in hand before moving forward. Mr. Pritzlaff felt this item should be tabled and reviewed in full. City Attorney Jamnik stated that is premature. What is in the packet is explained in the resolution. Under the State constitution a special law passed by the legislature has to be ratified or approved by the local unit of government in order to go into effect. Many cities have in the past delayed adopting the resolution ratifying the special law only to find out they forgot and the statute becomes void. This is a procedural requirement in order to ratify a special law passed by the legislature. It does not require the City Council to do anything substantively regarding the Deputy Registrar's Office, but it is necessary under the State constitution to ratify that special legislation. It is a procedural requirement, and nothing else. Mayor Larson stated we should do this before we start determining operational costs. City Attorney Jamnik stated this is something you have to do in order to make that law effective. City Administrator Herlofsky stated we have been in contact with Senator Pariseau's office for over a year asking if this was possible. It was approved a couple weeks ago. We have met with the County, with other cities, and nothing will be put in place until we have a budget and Council has approved that budget. We are at the preliminary stages. We do not have a business plan yet, because we are in the process of developing it. We are not expecting to start this office until close to the fIrst of the year. There will be plenty of time to work out the issues. Mayor Larson stated it comes back to the Council for approval. Mr. Pritzlafffelt it was a waste oftime to have it on the agenda when you don't know everything. Mayor Larson stated we will vote on this tonight. Council will look at how much startup costs will be to determine if it will be worth it and if it is we will vote for it, and if it's not, then we will not accept it. We have the choice. This vote tonight is not 8 Council Minutes (Regular) June 7, 2010 Page 3 costing us anything. Mr. Pritzlaff asked for the exact deadline for approving the resolution. Mr. Eric Speckan, 708 5th Street, thanked the City for reconsidering the boulevard tree replacement. He noted the City wanted to use a variety of trees to prevent disease spreading. The City had decided that Lindens and Maples were the trees of choice. He did some research and you are supposed to have a population of 10% - 20% of one particular species. He felt the City should consider having two more other species. He will e-mail the list to the City Engineer. Mr. Speckan understood there were plans for one tree per resident and staffwould consider two trees. He asked if there was an official decision. CounciImember Fogarty stated there was a map of trees removed and trees to be replaced and they did not match up exactly. Staff will be working with the homeowner to place the tree in the boulevard or in the yard. Mr. Speckan asked if the grade of the road will change. It is really low right now and their driveway skirt would be very steep. Mr. Speckan will contact the City Engineer. Ms. Beve Preece, Dakota Valley Arts Counci~ stated the DV AC was cleaning up the Art Park today. The DV AC will have letters distributed to 14 students that have been selected from the 2009/2010 art shows. The DV AC would like to have 14 paintings replaced in the park and hoped the students would respond with original work to be placed in the park. There will be a ceremony in late fall. There is a sculpture in the park that has been damaged and artwork would also be placed in that spot. There are also some empty places for new art work. The students should contact the DV AC to place it in the park. It is a beautiful park and they want to keep it that way. The DV AC will also have an art display at the Flavors of Farmington on June 17, during Dew Days. There will also be an art show on Saturday and Sunday in City Hall, and a display at the Farmer's Market this summer. 7. CONSENT AGENDA MOTION by Fogarty, second by Wilson to approve the Consent Agenda as follows: b) Adopted RESOLUTION R35-10 Approving Deputy Registrar Office- Administration c) Approved 2011 ALF Budget - Administration d) Approved School and Conference - Parks and Recreation e) Approved Appointment to Rescue Squad - Fire f) Approved Appointment Recommendation Police - Human Resources g) Approved Appointment Recommendation Liquor Operations - Human Resources h) Approved Appointment Recommendation Liquor Operations - Human Resources k) Approved Liquor License Addendum Celts Pub - Administration m) Approved Business Reinvestment Grant Program - Economic Development APIF, MOTION CARRIED. a) Approve Council Minutes (5/17/10 Regular) (6/1/10 Workshop) MOTION by Fogarty, second by May to approve the minutes. CounciImember Wilson stated he would like to divide the two sets of minutes. CounciImember Fogarty withdrew her motion. MOTION by Wilson, second by Fogarty to approve the May 17, 2010, Regular Council minutes. APIF, MOTION CARRIED. MOTION by Fogarty, second by May to approve the June 1,2010, Council workshop minutes. Voting for: Larson, Donnelly, Fogarty, May. Abstain: Wilson. MOTION CARRIED. 9 Council Minutes (Regular) June 7, 2010 Page 4 i) Approve Waiving Fees for Dew Days - Police j) Approve Waiving Fees for Fanner's Market - Administration CounciImember May asked ifthere was a standard as to who can request to waive fees. There are numerous organizations in the community and felt this sets a precedent. Both of these events are run independently from the City and they do collect fees; in particular, the Farmer's Market for garbage collection and parking lot sweeping fees. We do collect fees from the vendors. Does it not fund itself? City Administrator Herlofsky stated we try to break even, but the primary purpose is to bring people downtown. CounciImember May did not want to discuss which event benefits the City more. A lot of events by organizations are benefIts. She asked fundamentally if other organizations ask to waive the fees. Administrative Services Director Shadick stated as far as the Farmer's Market it is an EDA event. So the EDA would be responsible for paying those fees. If they are taking fees in for the vendors, that would offset that, but it is an EDA and City function. The Dew Days fees have always been waived by Council with the City's participation in Dew Days. As far as other organizations waiving fees, that is a Council decision and they are brought to Council. CounciImember May stated we are not talking about huge dollars, but as a member of other organizations in the community, that is something you budget when you plan the event. She preferred to be more black and white and have them put it in their budget and plan accordingly. Ifthere is a permit fee, there is a permit fee. As far as the Farmer's Market, ifwe want to waive the garbage and sweeping fees, then that should be an EDA decision. It is a small amount, but it is the principal of it. She felt the fee should stand. Administrative Services Director Shadick stated it is a good point that the organizations budget for these fees. They were not budgeted for based on past practice of Council waiving the fees. That could be brought back to the organizations. City Administrator Herlofsky stated prior to his arriva~ Dew Days received a contribution from the City. The issue is we are paying ourselves with some of these items. We are trying to minimize the amount of confusion. CounciImember May felt the City is already contributing quite a bit, in particular with Dew Days. With the Farmer's Market, ifwe want to see what the true cost is, we want it to be a viable event. CounciImember Wilson stated in looking at it from an organizational budget perspective you would have to add in a cost that the residents will pay through property taxes for the events to occur. If you were to budget that specific item, you could have a situation where residents could be paying a few cents more in taxes to fund the fees versus money that has already been collected. City Administrator Herlofsky stated at the last meeting we waived the fees at the Soybean Festival. The City's general practice is to try to be cooperative with the community. MOTION by Fogarty, second by Wilson to approve waiving the fees for Dew Days. Voting for: Larson, Donnelly, Fogarty, Wilson. Voting against: May. MOTION CARRIED. MOTION by Fogarty, second by Wilson to approve waiving the fees for the Farmer's Market. Voting for: Larson, Donnelly, Fogarty, Wilson. Voting against: May. MOTION CARRIED. n) Approve Bills CounciImember May had several questions on the list of bills as follows: Bonestroo - the list does not say if the amount is retainer or non-retainer and the Campbell Knutsen bill does. She asked if any of the $62,000 paid to Bonestroo is covered by the monthly retainer and what is the monthly retainer? 10 Council Minutes (Regular) June 7, 2010 Page 5 Campbell Knutsen - some are listed as retainer, some non-retainer, and some other. She asked what that retainer amount is. The retainer portion totals $435 of the $10,700. She asked if other daily work is done that would not be covered by the retainer. Councilmember May stated it is more a fundamental question of what the retainer is and does the retainer cover a portion of the totals. City Attorney Jamnik stated the retainer classification on the Campbell Knutsen bill is misleading because it is not a retainer the City pays as a specified amount each month. Campbell Knutsen has a not to exceed number that says for general legal work the City can expect to receive a bill for no more than X amount. They defme certain items as non-retainer such as litigation matters, development projects, and special assessment projects. CounciImember May stated in the Bonestroo case, the way we are charged is different for retainer versus non- retainer work. Mayor Larson asked ifthere was a way to mark on the bills ifthere was a way to show the developer would be billed. CounciImember May asked if clean-up days was done and ifwe would get a recap showing if it has exceeded the budgeted numbers. Staffwill be providing a report. AFLAC - CounciImember May asked if this was supplemental insurance paid by the employees. Human Resources Director Wendlandt stated it is for supplemental insurance. Some is for short term disability where employees can use part of the City's contribution to pay for that. Some is for other types of insurance that is payroll deducted from the employee's paycheck. The employee elects whether they want to have it or not. American Engineering Testing - Geotech services for $5,811 is charged to the Arena equipment bond. CounciImember May asked if the results of the soil borings have been received. This should not be charged to the bond. Staff will check on it. The soil borings showed the area will work for a second sheet of ice. Staff will be providing a report. Becker Arena Products - This was also charged to the Arena equipment bond. Parks and Recreation Director Distad stated this is for the demolition of the old dasherboards and is part of the construction project. Councilmember May asked if we pay the individual sub-contractors or just the general contractor? Staff stated this is the general contractor because the dasherboards were bid separate from the ice making equipment. Cintas - The weekly mat services showed $416 for the Arena. CounciImember May asked if we discontinue that for the off-season. Staff explained this is the bill for Marchi April. Councilmember May asked that the dates be verified for this bill. Pellicci Hardware for $1,470 - CounciImember May stated there are 58 items. If we are taking 58 trips to Pellicci's and stop the job, make the trip, find the item, that could be 58 hours. There are a lot of small dollar items. She asked ifthe supervisors could do better planning. Finance Director Walters stated they are individual invoices. CounciImember May stated this could be a full week's pay. 11 Council Minutes (Regular) June 7, 2010 Page 6 Weber Recreational Design - Park signs, the account description is under other costs. Parks and Recreation Director Distad stated those are new signs for Lake Julia and Prairieview Parks and are paid out of the park improvement fund. There isn't a coding for signs, so we use other construction costs. Dennis Burke for the doghouse - CounciImember May asked about the status of the fund raising for the canine unit. There is no account description shown. MOTION by Fogarty, second by Wilson to approve the bills. APIF, MOTION CARRIED. 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS a) 2009 Comprehensive Annual Financial Report - Finance The KDV Auditor presented the 2009 Financial Report. The Auditor commended the Finance department for getting through the year end closing without a Finance Director and commended the new Finance Director for the audit preparation. The transition went very smoothly. The fund balance was just under 25% of the annual balance. The City policy states there should be a fund balance of35%- 50%. The City is 10% short ofthe 35% minimum. CounciImembers asked questions regarding depreciation, tracking capital assets, and the tax capacity. The City's tax capacity is under 45%. The State average is 36.9%. As far as delinquent taxes, the entire levy came in $85,000 less than budgeted. Either the bank or someone is paying taxes on foreclosed properties. Cities have been hit hardest because of not collecting utility revenue when the homes are vacant. b) Approve Schmitz-Maid Arena Improvement Project Change Order - Parks and Recreation There are three additions to the Arena improvement project which include: - Adding a mop sink in the refrigeration equipment room $2,995 - Add ventilation system and controls for refrigeration equipment room $13,267 - Add a panic device hardware to exit doors from the refrigeration equipment room $4,418 - Deduct the ice rink subsoil drainage system $13,701 The floor is open so now is the time to install the mop sink. It is necessary to clean the building. The ventilation system needs to be enlarged. The fan is not large enough to accommodate the room in case of an ammonia leak. The panic device hardware is a code requirement. There was $45,727.95 in contingency for the project. The additions to the project amount to $20,680, but not doing the drain tile is a deduction of$13,701, so the remaining contingency is $38,748.95. 12 Council Minutes (Regular) June 7, 2010 Page 7 CounciImember Wilson asked if the changes to the refrigeration room were due to plans not being thought out by the contractor, or an expansion. Parks and Recreation Director Distad felt Bonestroo did not understand the code requirements for the fan and the panic bar. CounciImember Wilson stated he will approve the items because they are needed, but questioned why a reputable firm would not be aware of code requirements. They demonstrated considerable ice experience during the bid process. He wanted to know what discussions staffhad with Bonestroo and bring it back to Council. Councilmember Fogarty was struggling to understand how we missed two code requirements to the sum of$17,000, especially when we chose Bonestroo because of their familiarity with our Ice Arena and the City. If this is a mistake on their part, then some of this cost should be absorbed by them. It is a big deal that codes were missed. Staff will discuss the situation with Bonestroo and report back to Council. CounciImember May specifically recalled Bonestroo saying there was someone who was an expert within their organization with ice arenas. Between the contractor and the engineer to miss a code requirement, she will not approve this until she gets feedback from Bonestroo. Mayor Larson stated the contractor is following the plans Bonestroo provided. He was very disappointed in Bonestroo. CounciImember May asked ifwe cannot put in a mop sink ourselves. Parks and Recreation Director Distad stated we cannot install the mop sink because it has to be a licensed plumber and it has to be inspected. Councilmember May felt we could get a local contractor to do that for us. CounciImember Donnelly asked what would happen ifwe waited until Bonestroo could explain to us what happened. Staff stated because these are not tied to the ice making system itself: they could be done at a later date. The mop sink needs to be done because the floor is open. CounciImember Donnelly stated it would have been nice to have Bonestroo here to explain how they missed the code. CounciImember Wilson asked if the cost for the two more expensive items would change ifwe did not act on this tonight. The prices are good for 30 days from June 1,2010. City Administrator Herlofsky suggested if the floor will be closed before June 21,2010, Council could authorize staff to complete that portion. Councilmember Fogarty stated we have to do these items. The issue is between Bonestroo and the City. It will not change the change order. Mayor Larson felt the City is being taken advantage of by $3,000 for a mop sink. Bonestroo knew the arena and the building was open for them to write the specs. He was very concerned they missed a ventilation system for ammonia. CounciImember Wilson stated the City did not see how the number came about. Staff confIrmed the contractor submitted them to the construction manager. CounciImember Wilson asked why we cannot solicit bids for the work to be done. Staff did not know how many bids they solicited. Mayor Larson would like to know the markup price from their sub-contractor. CounciImember Donnelly stated the total difference is about $7,000. In the end we have no choice; it is a 13 Council Minutes (Regular) June 7, 2010 Page 8 code requirement. In the interest of keeping the project going, there are still things that could go wrong. Ifwe delay the project, it could affect having ice for the season. He would approve this tonight, and expect an explanation from Bonestroo at a later time. Mayor Larson felt there were not any items that would delay the project. He wanted to talk with Bonestroo before Council approves it. He suggested getting a quote for the mop sink from a local contractor. Staff cautioned you would be bringing in a different sub, there would be insurance, and the plumbing and the mop sink has to be tied together. Staff can contact a couple local people to check on the price. CounciImember Fogarty suggested contacting the Hockey Association to see ifthere is a plumber who would be willing to install it. This is exactly the type ofvolunteer work she was talking about. Councilmember May stated that is what happens. We vote and the whole thing moves forward and gets pushed under the rug. She felt Council should not vote until they have some answers. Mayor Larson suggested not voting on this, staff check with a local plumber to obtain a cost to install the mop sink, bring Bonestroo in for an explanation at the next meeting. Councilmember Fogarty stated there is no motivation on the contractor's part to call the Hockey Association and work with them because he will not make his upcharge if someone donates their time. She needs staff to be a huge advocate for the City and the Hockey Association and do whatever we can to bring the cost down. Maybe it won't work; but we won't know unless we ask. MOTION by Fogarty, second by Wilson to table this item until June 21,2010. Councilmember Wilson suggested bringing Bonestroo to the workshop on June 14. Council agreed with this. APIF, MOTION CARRIED. 11. UNFINISHED BUSINESS 12. NEW BUSINESS 13. COUNCIL ROUNDTABLE Councilmember Fogarty: Regarding Fire Chief Ken Kuchera's passing, not only was he a great Fire Chief for over two decades, he was a good community member. He will be greatly missed. She encouraged everyone to attend the Dew Days events which begin with the Pageant on June 16,2010. The parade will be Saturday afternoon. The list of events is available on the website. The Farmer's Market will start on June 24,2010. Councilmember Donnelly: He attended the Memorial Day service at the cemetery hosted by the VFW and the Legion. It was a very nice event. Parks and Recreation Director Distad: The outdoor pool opens on June 16,2010. The Dew Run will be held on June 19,2010. 14 Council Minutes (Regular) June 7, 2010 Page 9 Mayor Larson: He urged residents to support the local businesses. The businesses in Burnsville and Rosemount are starting a campaign we discussed called the 3/50 project. You pick three businesses in town and spend $50/month at each of them. He hoped Farmington businesses would also join that project. He asked ifthere was any new information on Facebook and Twitter. Staff is working on it. 14. ADJOURN MOTION by Fogarty, second by Wilson to adjourn at 9:03 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 15 Council Workshop Minutes June 14,2010 Mayor Larson called the workshop to order at 6:00 p.m. Present: Absent: Also Present: Larson, Fogarty, Wilson, May (arrived at 7:33 p.m.) Donnelly Peter Herlofsky, City Administrator; Teresa Walters, Finance Director; Kevin Schorzman, City Engineer; Randy Distad, Parks and Recreation Director; Todd Reiten, Municipal Services Director; Cynthia Muller, Executive Assistant MOTION by Fogarty, second by Wilson to approve the agenda. APIF, MOTION CARRIED. Ice Arena ImDrovement Proiect - Bonestroo Mr. Gary Kristofrtz, the Project Construction Manager from Bonestroo explained the change orders for the Ice Arena improvement project. The change order includes: 1. A credit in the amount of$13,701 as the soil was good and the sub-soil drainage system was not needed. 2. Adding a mop sink amounting to $2,995. More room was needed because of the refrigeration system. In changing the use of the room, a sink was removed. Mr. Kristofrtz did not know the sink was used for cleaning floors. Once the sink was removed, staff noted they needed a sink for cleaning. The contractor can just put in a sewer line connection. The underground sewer line will be covered within the next week. The cost for the connection would be $500. Mayor Larson agreed with just having the sewer connection stubbed in. Councilmember Fogarty asked if anyone has spoken with the Hockey Association as there may be someone that can install a sink as it is not time sensitive. Mr. Kristofitz stated it would be better if that person came in once the connection work is completed. Staffhas not contacted the Hockey Association yet, and could also contact local plumbers. Councilmember Fogarty stated her first choice would be to contact the Hockey Association. If they do not have someone that can do this work, then use a local plumber. CounciImember Wilson suggested looking for a local plumber period. CounciImember Fogarty wanted to see if someone from the Hockey Association would do it for free. It was noted it would have to be a licensed plumber. Parks and Recreation Director Distad should contact the Hockey Association, and if necessary, a local plumber within two weeks. 3. Ventilation System - Bonestroo designed the project as three separate projects, the refrigeration, the dehumidification, and the dasherboards. The ventilation system was in the dehumidification project. When the bids were awarded, the ventilation system was in the portion of the contract that was not accepted. Mr. Kristofrtz stated it was in the design, but Bonestroo should have informed the City that it needed to be added on. Mayor Larson stated Council was frustrated because Bonestroo knew one or two out of the three projects could have been accepted and knew the ammonia system needed a 16 Council Workshop Minutes June 14,2010 Page 2 bigger ventilation system. Mr. Kristofrtz agreed they should have caught it once the dehumidification system was not awarded. Bonestroo' s mechanical engineer informed him a couple days later that a ventilation system needed to be included. The original dehumidification bid was $280,232 including the $13,000 ventilation system. It took the contractor a few weeks to get the pricing for just the ventilation system. There is a 15% overhead fee for the contractor or 5% if a sub-contractor does the work. In this case, the prime contractor would do the work. 4. A panic device needs to be added to the doors amounting to $4,418. The architect reviewed the code and all that is required is an exit of any type. This winter the state adopted another rule which applies to this project, but they do not send out notification of the change. The contractor found out when it was inspected. CounciImember Wilson asked when the project was approved. The plans and specs were approved in February with a bid date of March 1. The contract was awarded April 5 and Bonestroo found out about the ventilation system the week after that. CounciImember Wilson asked if staff was notified. Mr. Kristofitz stated it was discussed at a preconstruction meeting on April 22, and mentioned the contractor was gathering pricing. The prices were obtained a couple days prior to the last Council meeting. CounciImember Fogarty asked about the status of the project. The floor is out and they are working on the sub-soil heating system. Getting the equipment in takes several weeks. Welding the piping to the equipment is very labor intensive. This is done towards the end of the project. Over the next month they will be working on the ice rink floor and getting ready to pour the concrete. Council asked to be notified as to when the floor will be poured. CounciImember Wilson stated it sounds like there was communication between staff and Bonestroo, so he asked that in the future Council be notified that a change order could be coming. The change orders will be placed on the June 21,2010, Council agenda. CIP - Public Works Projects Having a CIP is an important part of the budgeting process. The CIP presented is similar to what Council saw earlier in the year. This is not just a five year CIP; it also includes another five years into the future. This is because seal coating is on a seven year cycle and there has been some concern with tearing up roads during that lifetime. The annual projects are based on the assumption we will be doing seal coating using franchise fees. Ifwe don't do that, it will impact the numbers. The expansion projects are driven by an increase in population in certain areas and do not have as much of an impact on the bonding numbers as costs are set aside in other funds or paid for by development. Bonding covers the reconstruction and rehabilitation projects. Council and staff discussed what a rehabilitation project entails. A rehabilitation project does not get into utilities. Next, staffreviewed the reconstruction projects. The rehabilitation and reconstruction projects will be removed from the seal coat cycle once staff receives a consensus from Council that this CIP will be followed. Westview Acres has already been removed from the seal coat cycle. CounciImember Wilson asked what analysis has been done regarding overlapping taxation on major projects such as EIm Street and Ash Street or other reconstruction 17 Council Workshop Minutes June 14,2010 Page 3 projects that have been approved in the past 3-5 years. It becomes a heavy burden for the residents who are still paying for one project and then another project is added. City Engineer Schorzman stated whether there have been past assessments for other projects, does not change the need at the time. We can look at it and try to mitigate it, but it does not change the fact something needs to be done. Staffwill review the assessments for EIm Street and Ash Street projects. City Administrator Herlofsky noted staff would like to have a consensus from Council that franchise fees will be used for seal coating. Currently the City assesses 50% for seal coating. City Engineer Schorzman stated Council consensus at the March meeting was to move forward with the franchise fees covering the cost of the project 100% and not have assessments. This process preserves the ability to include non-taxable properties. The reason for this is the road and bridge fund is decreasing. The franchise fees would come from gas and electric utilities. Between the two there would be approximately $200,000 from each. The franchise fee amount discussed at the March workshop would be $2.50/month/utility. This would eliminate the need for assessments for seal coating and should carry us through the next 10 years. There are enough funds left in the road and bridge fund to possibly carry us through next year. There are two ways to charge franchise fees; as a fIXed amount (which is best) or based on consumption. It is the City's decision how to charge the fees. We need to use franchise fees or levy to cover the amount. Audience members Mr. David Pritzlaff and Mr. Jerry Ristow asked questions regarding the franchise fee versus assessments. It was explained the franchise fees is a way to even the payments across the community. The 7-year seal coat schedule would remain the same. Councilmember Fogarty would support franchise fees. Mayor Larson would like to think about it more. City Engineer Schorzman explained the second part ofthe discussion was how to pay for the projects. Do we continue to bond for 100% of the project or look at getting a better value for the taxpayers? Staff wanted to focus on collecting some funds upfront so we can pay for a project in the year we do it. Staff looked at several scenarios and one that will balance out the long term effects on the levy with lower interest payments is collecting $500,000 each year in taxes that would go directly to pay for the project we are doing that year. Over ten years that will save the residents $1.6 million in interest while having very little effect except for the fIrst year on the amount of levy you will have, whether you bond for all of it or levy for part of it for the down payment. City Administrator Herlofsky stated the $500,000 is collected through a levy. It would be a designated amount of levy that would go specifically to projects. This is different from the general fund levy and the normal bond portion of the levy. If it is a levy it now becomes an income tax deduction for the residents. If it is an assessment, it is not a reduction on their income taxes. Finance Director Walters stated it would increase the taxes by $100/year. City Administrator Herlofsky explained the portion of the levy that we have for bonds will still be at that same $500,000 which will be in the budget. Finance Director Walters stated the fIrst option is to buy each project individually each year and we will bond for each project each year. The second option is to delay the project a year and 18 Council Workshop Minutes June 14,2010 Page 4 levy for $500,000. In the second option, the first year the increase in the levy will be higher than the way we do it now. The fo llowing years the payment will be consistent had we done the project as in the past. It will not eliminate bonding. It is buying down the bond to eliminate interest. City Engineer Schorzman stated it is up to Council whether to use the $500,000 to defer or reduce the assessments on the projects or defer what the rest of the City pays. Mayor Larson stated it is a down payment on the project. CounciImember Fogarty stated her concern is getting five CounciImembers to agree on policy and five more in another year. Policies can change. She asked how strongly can we create a fund that is untouchable. City Administrator Herlofsky noted even if it is done for five years there is still a benefit. CounciImember Wilson would like to look at different ways to explore input costs to do the project. City Administrator Herlofsky noted 2007 was the last time we raised taxes which is the same number as 2010. The reason for the high property taxes is the school district did generate a substantial increase in property taxes over the last five years. The community was willing to pay for educating youth. (Councilmember May arrived 7:33 p.m.) City Administrator Herlofsky noted the transition of using City staffmore than Bonestroo staff on projects has made a tremendous difference. City Engineer Schorzman stated the rehabilitation projects will be handled inhouse. Testing would be outsourced. CounciImember Fogarty noted staff mentioned an engineering cost of27% and asked staff to look at the last 4-5 projects to see what percent we were at. City Engineer Schorzman stated the 27% expenditure will be changed by the shift in using City staff to do the inspections. The EIm Street and Ash Street projects had very little City staff involvement. Mr. David Pritzlaff noted it was said that City taxes have not been raised since 2008. Over three or four years when a property loses $40,000 or more in value, you cannot say we are not raising taxes. If property taxes are based on the house value and the taxes have not gone down, that is not a fair assumption. Regarding adding $500,000 to the levy for projects to save money, if you raise the levy and split it on the number of people based on property value, if you pay $100 for seven years, will residents be charged for the seal coat project? Finance Director Walters stated the $100 will help reduce the amount of interest so it will reduce the amount of taxes you will have to pay. In the long run, the City will save more on interest payments than you would make putting it in your own account. Ifwe do the projects anyway, which they need to be done, taxes will increase every year for the projects. Regardless whether we assess for the project or not, we still have a portion we need to bond for and the levy would increase every year for the project that will be done in that year. Staff is saying to levy the year before you start the project, so the fIrst year will be the only year you will see the higher increase in the levy. Each ofthe other years you will be paying less. The taxpayers over ten years will pay less than they would if we were to just do the projects every year. The projects need to be done. Staff is looking at a different way of paying for it. Instead of bonding for the entire project, we are looking at levying for a portion of the project and levying for the portion that is bonded. In the long run it is the same payment. The only time it is not the same payment is the fIrst year. 19 Council Workshop Minutes June 14,2010 Page 5 CIP - Parks City Engineer Schorzman felt it was important for Council to consider a maintenance program for the trails similar to the streets. There is a sealant for trails that costs $lIft. The cost to rebuild a trail is $15/ft. Whether a vehicle drives on them or not, they are still a part of the City's infrastructure. There are 42 miles of trails. Parks and Recreation Director Distad gave an overview ofthe five year plan for park improvements. From 2001-2009 $1.9 million has been spent for park improvements from development fees. No tax dollars have been spent. Based on the master plans there is $16.7 million in improvements yet to be made. There are no dedicated funding sources other than development fees. Staff asked if Council wanted to defer the improvements until development resumes and we receive development fees, or levy for the improvements. Staff is hoping to receive some direction from the current Community Survey as to what the residents want. Councilmember Wilson asked about the amount of funding needed for trails. Staff stated it would be approximately $35,000. City Engineer Schorzman suggested collecting funds to maintain trails and also put aside funding for reconstruction of trails. He suggested $35,000/year for maintenance and $70,000/year for reconstruction of segments. CIP - Vehicles The City is behind by $1.386 million in replacement of vehicles and equipment. A salt storage area would cost $100,000, and a fuel station would cost $150,000. Ifwe cannot obtain salt from the county shed, we would not be able to obtain salt. CounciImember Wilson suggested talking to Lakeville regarding a cooperative agreement for salt storage. Municipal Services Director Reiten stated we are doing that with the county. Empire is also going to the county storage shed. In the future, if the county shed goes away we would have to drive to Hampton for salt. A storage area here would be valuable. City Administrator Herlofsky noted public works is part of public safety. Municipal Services Director Reiten also presented a schedule of vehicle replacements showing where we should be and where we actually are. City Engineer Schorzman asked for Council direction on how to proceed with the public works projects as it will have an impact on the budget. If Council wants to go with the $500,000 levy, staffwill move the projects out one year into the future. City Administrator Herlofsky asked for Council to at least agree or not on the projects and staffwill come back with the cost. CounciImember Fogarty asked for a clarification on some of the projects. Staff felt a water treatment facility would not be needed within the next 10 years. In that case, CounciImember Fogarty asked that the Water Treatment Facility sign be removed and place some sod in the area. Staff will bring this to the Water Board. CounciImember May confIrmed staff wanted Council to agree with the concept projects and when to complete them. Staff agreed and would like a plan Council agrees to so projects will not be pushed back year after year. Council will use this to prevent duplicating seal coating and tearing up projects. CounciImember May stated as far as the money, she is a big proponent of this type of planning, but unless we talk about cost cutting and saving to some degree when we present this, it will not be pretty. We have to figure out how we combine those two conversations when presenting the plan to the public. CounciImember Fogarty was on board 20 Council Workshop Minutes June 14,2010 Page 6 with getting the projects done, because not getting them done, costs the taxpayers more. She would like more information on the $500,000 levy. Finance Director Walters will prepare a spreadsheet showing how it is laid out. CounciImember May stated if she is a taxpayer and paying $100/year over 10 years, it does not sound like $1.6 million is going to be more than $1,000 in savings. Finance Director Walters stated the $100 will not save you more than you put in. If you do all the projects, it may cost $100/year this way, but it might cost $120/year ifwe did it a different way. Mayor Larson asked that staff only bring necessity items to Council for the budget. CounciImember Wilson would like to see where project taxes are occurring now and if there would be an overlap in areas with the projects listed on the CIP. Staffwill bring the CIP for street projects to the June 21, 2010, Council meeting as a discussion item. MOTION by Fogarty, second by Wilson to adjourn at 8:58 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 21 7h City of Farmington 430 Third Street farmington, Minnesota 651.280.6800 · Fax 651.280.6899 w\\ow.ci.tarmi'l1gton.mn.LL'I TO: Mayor, CounciImembers and City Administrator FROM: Teresa Walters SUBJECT: May Financial Report DATE: June 21,2010 Enclosed is the financial report for the months of January through May 2010. The report shows revenues and expenditures for 41.65% of the year. Below is a list of any discrepancies along with reasons for the variance from the 41.65%. If you have any questions prior to the meeting, you may e-mail meattwalters@cLfarmington.mn.us or call me at 651-280-6880. General Fund Revenues Property taxes Amount Received 0.00% Licenses 54.30% Permits 69.99% Intergovernmental 25.88% 22 Reason for Variance Property taxes are received from the county twice per year (June and December). License revenue is higher due to two new restaurants - Blondies and Celts (currently a full liquor license). Animal licenses are also higher than normal at 74.2% of the budget. The majority of this line item is building permit revenue. Bldg permit revenue is at 75% of the budget. YTD total permit revenue is $198,067 compared to the annual budget of $283,000. No franchise fees have been received YTD - May (budgeted at $75,000). This is normally received quarterly. Last year's payment was received in May. Fines 23.10% Charges for services 17.91 % Miscellaneous 66.88% Expenditures Historical Preservation 117.88% Snow removal 52.05% This year's payment was received on June 1 st. It will show up on next month's report. We also have not received any Police or Fire Aid. This normally does not show up until Fall. Fines are below the anticipated budget. Last year at this time fmes revenue totaled $25,721 vs. $23,102 this year. Charges for services include Recreation. This revenue is seasonal. GIS fees are budgeted for $5,000, no fees have been collected YTD. Fees are anticipated to be received when the development contract is signed for the CDA Senior Housing project. Fire charges are not received until the end of the year. This includes Rental income and the ALF payment. This is the only ALF payment we will receive this year. We are anticipating additional grant money (a matching grant) for consultant services. This revenue should be received in by October 2010. Heavy snowfalls in January and February Overall General Fund Revenues (without taxes) are at 35.73% ofthe budget. This is slightly below budget. Expenditures look good since they are slightly lower than anticipated at 37.74% of the budget. Also, in May 2010 there were three payrolls. 23 Special Revenue Funds: These funds are established to account for specific revenue sources (grants) or to fmance a specific activity. Assistance may be needed from the general fund or another designated fund to operate. The Recreation and Ice Arena funds continue to operate with a deficit fund balance. A transfer will need to be completed to bring up the balance if it is not positive by year-end. The actual deficit balance in the Recreation Funds at the end of2009 was ($229,946). The actual deficit in the Ice Arena Fund was ($178,985). Ice Arena professional service expenditures are higher than normal due to the Ice Arena study completed in January. Senior Center salaries are currently at 82% of the budget due to incorrect coding of salaries. A portion of the Coordinator's hours should be coded to Recreation. An adjustment will be made in June. Enterorise funds: These funds are self supporting and do not need fmancial assistance from the General fund. Liquor expenditures exceeded revenues by $29,227 in May. Street Light Utility: Street light utility revenues were received for the first time in March 2010. Revenues were very close to expenditures for the month. Overall the Sewer. Solid Waste. Storm Water. and Water enterprise revenues are exceeding expenditures. Both revenues and expenditures are below budget. Water revenue and expenditures are down from budget due to higher usage in the summer months. Graoh: The graph shows that overa112010 YTD cashflow exceeds 2009's cashflow at this time. This is a positive sign for the City since our fund balance in the General fund is below the State Auditor's recommended 35-50%. A healthy fund balance is needed to operate during the year because our main source of revenue does not come in until June. The fund balance could also be utilized to assist other funds when operations revenue is not as high as anticipated as we have seen with the Recreation and Ice Arena funds. Our current General Fund balance was at 24.9% at the end of2009, the highest point ofthe year. It is currently at a negative ~663,585. Respectfully submitted, Teresa Walters Finance Director 24 18 ""., i::lil aito:M ~mg e<oi"':N "''''''' Rt:"N" ~."o "tLq,Lq, ~i~ ." jjf'" SiooJ "':uiai tO~~ ::f;jt;l "'<0'" ~f~~~ '" <0 mfD~ ~...", Nair--:- '" ."" \'00.""':: ~ J:;t::! '":"i."l. ~~~ ~ ~...:~ '" 8, '!J ~~~ '" fil<1i~ .,:::~ "'O~ ~f;~ ~~I ~j'M "l..~ m~~ -::;. 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'" '" '" I f) ,I j I l i I I ~"~ I II I, t= l':~ I; 1'1 1 Ix I I I II Ig ~ IU A 'c ~ I i Ii !Ill ~ Ii ''0 II d I! js '5 ~ ~ II ~ ~ ~ ~ u i!; ;; III ,E III ,E ,E ,E III ,E ,E 0 I i i ~j i 1 '" ~Ij i '0 ;j! ! ~ U ! i == r::: 0 0 u:: ..... .c ~ Cl III ~ r::: III ~ E u '" "'C ~ ... c: '" ca "C ~ 0 u.. '" u.. - 'iii 0 ... ~ Ql c: Ql U C) c ~ j '5 "" (3 C\l ...... 1--'1 ...... [ IIR:J c.:= ...... c:::::; (j) co r-- 1.- L_ CD - ,C ::::f!" .. (") I C\l I I ...... 0 0 0 0 0 0 0 0 0 0 ~ LO V '" N ~ <I> ~ N '" ~ LO V "'. N ~ ~ N "< N ui cO ~ ~ r-: r-: v' ~ N '" V ~ t-. co co t-. ~ C':l q ~ ~. t-. '" C':l t-. "": N ;;; ;;; ;;; <I> <I> <If <If ~ <I> <If a:>uelea pun::! C'l t- o 0 0 0 N N 0 0 co C\l 0 00 .- 0 0 0 N N 0 . ~ , J :0 ~ ~ i ~ ~ .. U o ;! a n ~ -~ =>~ ~ ~ U<n Ie. City of Farmington 430 Third Street larmington, Minnesota 651.280.6800. Fax 651.280.6899 w\....w.ci .farmingtoll.n1n.LL,\ TO: Mayor, Councilmembers, City Administrator FROM: Lisa Shadick, Administrative Services Director SUBJECT: Adopt Resolution - Appointing Primary Election Judges DATE: June 21,2010 DISCUSSION The Primary Election is Tuesday, August 10,2010. Per State Statute 204B.21,subd. 2, election judges must be appointed at least 25 days before the election. The attached resolution appoints judges for all Precincts 1 through 6 for the 2010 Primary Election. BUDGET IMPACT Election costs are included in the 2010 budget. ACTION REQUIRED Adopt the attached resolution appointing election judges for the Primary Election on August 10,2010. Respectfully submitted, Lisa Shadick, CMC Administrative Services Director 29 RESOLUTION NO. R36-10 APPOINTING ELECTION JUDGES AND DESIGNA TING POLLING PLACES FOR THE AUGUST 10,2010 STATE PRIMARY ELECTION Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota, was held in the Council Chambers of said City the 2 I 5t day of June, 2010 at 7:00 p.m. Members present: Members absent: Larson, Fogarty, May, Wilson Donnelly Member Fogarty introduced and Member May seconded the following resolution: WHEREAS, pursuant to Section 204B.21 of the Minnesota Election Laws, election judges shall be appointed by the governing body of the municipality at least 25 days before the election at which the election judges will serve; and WHEREAS, election judges shall receive at least the prevailing Minnesota minimum wage for each hour spent carrying out duties at the polling place and attending training sessions. NOW THEREFORE, BE IT RESOLVED that the individuals listed in this resolution are appointed to serve in the City of Farmington as election judges for the 20 I 0 State Primary Election at the hourly rate of $8.00 for election judges and $9.00 for head judges; and will serve at the following designated polling locations: Precinct 1 - Rambling River Center, 325 Oak Street Precinct 2 - Instructional Services Center, 51 0 Walnut Street Precinct 3 - Meadowview Elementary School, 6100 195th Street West Precinct 4 - Akin Road Elementary School, 5231 195th Street West Precinct 5 - Bible Baptist Church, 19700 Akin Road Precinct 6 - Levi P. Dodge Middle School, 4200 208th Street West 20 lOP' EI r J d nmary , ec IOn u ges Allen Patrin Erwin Hagen Kimberly Lomas Pat Thurmes Ann Jensen Georgene Herlofsky Larry Hempler Pat White Bev Preece Georgia Freetly Lauretta Schneider Patricia Bohm Blanche Reichert Gretchen Bergman Lee Benz Patrick Hansen Bonnie Andrusick Hazel Truax Lisa Benson Peggy Reiman Brenda Ellis-Reedy Helen Hagen Lois Lotze Richard Cornair Carol Klotter Janet Carpentier Lori Pilla Ron Miles Carole Hansen Janet Thompson Lynn Nordine Ronald Kuck Charles Freundl Jeanne Stanek Marilyn Emond Rosemary Benz Charles Weber Judith Kuck Marlene Beeney Sarah Miller Cindy Waldt Karen Kellington Mary Jo Bell Sherred Cordes Darlene Grabowski Karen Pietsch Michelle Hinze Sue Perro David Stanek Kathleen Tverberg Nancy Bjerke Thomas Welter Dennis Sullivan Kathryn Akin Pamela Wickham Todd Carey Doris Dahl Kim Demo Pat Hennen BE IT FURTHER RESOLVED that the City Clerk, or City Clerk's designee, is authorized to appoint additional election judges as needed to conduct the 2010 State Primary Election. This resolution adopted by recorded vote of the Farmington City Council in open session on the 21 sl day of June 2010. ."~~~ Mayor SEAL Attested to this~ay of ~ , 20 C/ ' 7d City of Farmington 430 Third Street .'a.nuington, Minnesota 651.280.6800. Fax 651.280.6899 www.ci.tarmingttm.mn.u... TO: Mayor and Councilmember's City Administrator FROM: Brian Lindquist Police Chief SUBJECT: Approve Amended MAAG Joint Powers Agreement DATE: June 21, 2010 INTRODUCTION I DISCUSSION The Farmington Police Department is one of twelve departments in Dakota County that is part of an emergency support response known as MAAG. As a member of that response unit the Farmington Police Department is part of a Joint Powers Agreement. The Joint Powers Agreement is reviewed by legal counsel on a continuing basis for changes in procedure or policy. The Joint Powers Agreement has been revised to coincide with current policy. BUDGET IMPACT No budget impact. ACTION REOUESTED Attached is a copy of the Joint Powers Agreement. Respectfully submitted, ,-.u~;.:," / /~q:~~-I l.../...~ 4-.- V' / Brian Lindquist Chief of Police 32 DAKOTA COUNTY MULTI-AGENCY ASSISTANCE GROUP 2010 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 MUTUAL AID ASSISTANCE GROUP, 2003 JOINT POWERS AGREEMENT, and shall become effective only upon the approval and execution hereofby duly authorized officers of all of the parties. NOW, THEREFORE, the undersigned governmental units, in the joint and mutual exercise of their powers, agree as follows: 1. Name. The parties hereby establish the Dakota County Multi-Agency Assistance Group (MAAG). 2. General PUI:pose. 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 Farmington City of Hastings City of Inver Grove Heights City ofLakeville City of Men dot a Heights City ofNorthfield City of Rose mount City of South St. Paul City of West St. Paul County of Dakota 4. Governance. 4.1. Governine: Board. The governing board of the MAAG shall consist of the following: one member and one alternate member appointed by the police chief of each party that is a city; and one member and one alternate member appointed by the Dakota County Sheriff. Appointees shall be full-time supervisory peace officers of the appointing party. Resolutions or other documentation of the appointments shall be filed with the Dakota County Sheriff. 1 33 Members of the governing board shall not be deemed to be employees and shall not be compensated by the governing 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. In January of each year the governing board shall elect from its members a chair, vice chair and secretary/treasurer. The chair shall preside at all meetings of the governing board and shall perform other duties as determined by the governing board, including the authority to sign contracts authorized by the governing board. The vice chair shall preside during the absence of the chair. The secretary/treasurer shall assist the chair in overseeing the governing board's budget and finances. 4.4. Meetine:s. The governing 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. Votine:. Each party to this agreement shall have one vote at any meeting of the governing board. Proxy votes are not permitted. The governing board shall function by a majority vote of board members or alternate members present, provided that a quorum is present. 5. Duties of the Governine: Board. 5.1. The governing board will formulate a program to carry out its purpose. 5.2. The governing board will coordinate information between the parties and the MAAG. 5.3. The governing board shall appoint and supervise the Team Commander of the MAAG. The governing board may appoint and supervise Assistant Team Commanders of the MAAG. Appointments require the concurrence of the chief law enforcement officer of the Team Commander's or Assistant Team Commander's employer. Appointment as Team Commander or Assistant Team Commander pursuant to this agreement shall not obligate any party to pay to its employees so appointed either supervisory or other premium pay. 6. Powers of the Governine: Board. 6.1. The governing 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 governing board shall not enter into any contract the term of which exceeds one year. No payment on any invoice shall be authorized unless approved by at least two of the three officers elected pursuant to paragraph 4.3. The chair shall report to the governing board any such payments at its next meeting. 2 34 6.2. The governing board may contract with any party to provide budgeting and accounting services necessary or convenient for the governing board. Such services shall include but not be limited to: management of all funds, payment for contracted services and other purchases, and relevant bookkeeping and record keeping. 6.3. The governing 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 governing 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 governing 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 governing 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 10.2.1, 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 10.2.1 to recall the team. 6.6. All powers granted herein shall be exercised by the governing board in a fiscally responsible manner and in accordance with the requirements oflaw. The purchasing and contracting requirements of Dakota County shall apply to the governing board. 6.7. The governing board may cooperate with other federal, state and local law enforcement agencies to accomplish the purpose for which it is organized. 6.8 The MAAG does not have the authority to seize property for purposes of Minn. Stat. ~~ 609.531-.5318. 6.9. The governing board may retain legal counsel to advise the board and provide civil legal services. 6.10. All cash monies received through forfeiture or restitution that are derived from MAAG operations shall remain the property of MAAG and shall be used in furtherance of MAAG efforts. 3 35 7. Budl!et and Finance. 7.1. Budl!et. By March 31 of each year the governing board shall prepare and adopt a budget for the following calendar year and may amend the same from time to time. 7.2. Exnenses. The parties intend to fund the MAAG through annual contribution paid by each party. The governing board shall establish the contribution by March 31 of the year prior to the year when the contribution is payable. The parties agree to pay the contribution as determined by the governing board on or before January 31 of the year following the determination, provided that the city council or county board has included funds for this purpose in its adopted budget. 7.3. Accountabilitv. All funds shall be accounted for according to generally accepted accounting principles. A report on all receipts and disbursements shall be forwarded to the parties quarterly and on an annual basis. 8. Team Leaders. 8.1. The Team Commander and Assistant Team Commanders shall appoint licensed peace officers to serve as MAAG team leaders, subject to approval of the governing board. Appointment as team leader pursuant to this agreement shall not obligate any party to pay to its employees so appointed either supervisory or other premium pay. 8.2. Team leaders assigned to the MAAG at all times will remain employees of the leaders' own jurisdictions and will not be employees of the governing board. 8.3. Team leaders shall be the liaison between the team members and the Team Commander or Assistant Team Commander when a MAAG team has been deployed pursuant to this agreement. 9. Team members. 9.1. The chief law enforcement officer of each party shall assign licensed peace officers to serve as MAAG team members, subject to approval of the Team Commander. Appointment as a team member pursuant to this agreement shall not obligate any party to pay its employees so appointed any premium pay. 9.2. Team members assigned to the MAAG at all times will remain employees of the members' own jurisdictions and will not be employees of the governing board. 10. Ooerations. 10.1. Traininl!. The Team Commander shall be responsible for arranging monthly and annual training events for team leaders and team members, consistent with direction from the 4 36 governing 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. 10.2. Deoloyment. 10.2.1. Reauests 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 governing board, that the MAAG deploy a MAAG team to assist the party's jurisdiction. Upon a request for assistance, a MAAG team may be dispatched to the requesting party, in accordance with policies and procedures of the governing board. A party may decline to make its personnel 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 MAAG liability. The Team Commander or Assistant Team Commander shall notify the chair or vice chair anytime that assistance is provided 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 MAAG, any party, or to the Team Commander or Assistant Team Commander who recalled the team. 10.2.2. Direction and Control. Personnel and equipment provided pursuant to this agreement shall remain under the direction and control of the party providing the same and also to the tactical control of the licensed peace officer in command of the scene of the jurisdiction to which assistance is being provided. 10.2.3. Comoensation. When the MAAG provides services to a requesting party, the personnel of the MAAG 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 MAAG 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 48 continuous hours. If assistance provided pursuant to this agreement continues for more than 48 continuous hours, and the assistance is not provided in connection with a criminal investigation, any party whose officers provided assistance for MAAG shall submit itemized bills for the actual cost of any assistance provided, including salaries, overtime, materials and supplies, to the MAAG and the MAAG shall submit the invoices to the requesting party. The requesting party shall reimburse the MAAG for that amount, and the MAAG shall forward the reimbursement to the responding party. 10.2.4. Workers' Comoensation. Each party to this agreement shall be responsible for injuries to or death of its own employees in connection with services provided 5 37 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 MAAG. Each party to this agreement waives the right to sue any other party for any workers' compensation benefits 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. 10.2.5. Damae:e to Eauioment. Each party shall be responsible for damage to or loss of its own equipment occurring during deployment of the MAAG. Each party waives the right to sue any other party for any damages to or loss of its equipment, ev~n if the damages or losses were caused wholly or partially by the negligence of any other party or its officers, employees or agents. 10.2.6. Indemnification. 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 party. In addition to the foregoing, nothing herein shall be construed to waive or limit any immunity from, or limitation on, liability available to either party, whether set forth in Minnesota Statutes, Chapter 466 or otherwise. To the extent that tort damages or other related costs or fees become payable to a third party as the result of this Agreement or the activities carried out hereunder that are not covered by insurance that MAAG has in force, the parties to this Agreement shall each pay an equal amount. Notwithstanding the foregoing, this Agreement is solely for the benefIt of the parties hereto and no other person shall have any right, claim, or interest in it. 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. 10.3. Aid to Non-Parties. 10.3.1. Upon a request for assistance from a governmental unit that is not a party to this Agreement, a MAAG team may be dispatched to such governmental unit, in accordance with policies and procedures of the governing board, provided that the police chief or Dakota County SherilI, as appropriate, has consented to such deployment of its employees. Failure to provide assistance in response to any such request shall not result in any MAAG liability. The Team Commander or Assistant Team Commander shall notifY the chair any time such assistance is provided. The Team Commander or Assistant Team Commander may at any time and in his/her 6 38 sole judgment recall the team. The decision to recall a team hereunder shall not resuh in any MAAG liability. 10.3.2. Liability resulting from the provision of assistance to a non-party shall be allocated in the same manner as provided by Minnesota Statutes, Section 12.331, subd. 2, Le., MAAG assumes the same liability as a sending political subdivision and the non-party assumes the same liability as a receiving political subdivision. 11. Term. The term of this agreement shall be effective only when all of the parties have signed this agreement. The Dakota County Sheriff shall notify the members in writing of the effective date of this agreement. This Agreement shall continue in effect until terminated in accordance with its terms. 12. Withdrawal and Termination. 12.1 WithdrawaL Any party may withdraw from this agreement upon 6 months' written notice to the other parties. Withdrawal by any party shall not terininate 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. A withdrawing party shall have no claim to any property or assets owned or held by MAAG. 12.2 Termination. This agreement shall terminate upon the occurrence of anyone of the following events: (a) when necessitated by operation oflaw 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. 12.3 Effect of Termination. Termination shall not discharge any liability incurred by the MAAG 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 MAAG shall then be distributed to the parties in proportion to their contributions. 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 reoorts. The books and records of the MAAG shall be subject to the provisions of Minn. Stat. Ch. 13. 13.3 Counteroarts. 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 Dakota County Sheriff. 13.4 Additional Parties. Any other municipality within Dakota County may become a party to this agreement upon approval of the governing board, adoption ofa resolution by the ! ' 7 39 municipality's governing body, execution of this agreement, and filing of the same with Dakota County. 8 40 IN WITNESS WHEREOF, the parties have executed this Agreement on the dates indicated below. Approved as to form: COUNTY OF DAKOTA Assistant County Attomey/Date Dave Bellows Dakota County Sheriff Date of Signature 9 41 CITY OF FARMINGTON Name Title Date of Signature 11 43 7~ Cit)T of Farmington 430 Third Street farmington, Minnesota 651.280.6800. Fax 651.280.6899 w\"w.ci.mnnmgttm.mn.u,'; TO: Mayor, Councilmembers, and City Administrator FROM: Brenda Wendlandt, Human Resources Director SUBJECT: Business Associate Agreement with Gallagher Beneftt Services, Inc. DATE: June 21, 2010 INTRODUCTION The purpose of this memorandum is to provide information and request approval for the Business Associate Agreement between the City of Farmington and Gallagher Benefrt Services, Inc. DISCUSSION The provisions of the Health Information Technology for Economic and Clinical Health Act of 2009 (HITECH Act), which was enacted as part of the American Recovery and Reinvestment Act of 2009 (ARRA), modified the Health Insurance Portability and Accountability Act of 1996 (HIP AA) so that security provisions now directly apply to service providers and business associates. The changes affect the group health plan that the City maintains and necessitates a Business Associate Agreement with Gallagher Benefit Services, Inc. The City is a member of the LOGIS HealthCare consortium for which Gallagher Benefits Services, Inc. is the beneftts broker- consultant. This agreement reflects the responsibilities of Gallagher Benefit Services, Inc. as the City's business associate. This agreement has been reviewed and approved by the City Attorney. ACTION REOUESTED Approve the Business Associate Agreement between the City of Farmington and Gallagher Benefit Services, Inc. Respectfully Submitted, ,.(. l =A>,/'1, I j,J- ".~d~oc#r~u.1,utbf.t~ Brenda Wendlandt, SPHR Human Resources Director cc: file 52 BUSINESS ASSOCIATE AGREEMENT This Business Associate Agreement ("Agreement") is entered into on this eighth day of June, 2010 (the "Effective Date"), by and between the City of Farmington on behalf of the City of Farmington Group Health Plan ("Covered Entity") and Gallagher Benefit Services, Inc. ("Business Associate"). RECITALS: WHEREAS, Covered Entity and Business Associate mutually desire to outline their individual responsibilities with respect to the use and/or disclosure of Protected Health Information ("pm') as mandated by the Privacy Rule promulgated under the Administrative Simplifications subtitle of the Health Insurance Portability and Accountability Act of 1996 ("HIPAA") including all pertinent regulations issued by the U.S. Department of Health and Human Services as outlined in 45 C.F.R. Parts 160, 162 and 164; ("HIPAA Privacy Rules and/or Security Standards") and WHEREAS, Covered Entity and Business Associate understand and agree that the HIP AA Privacy Rules and Security Standards requires the Covered Entity and Business Associate enter into a Business Associate Agreement which shall govern the use and/or disclosure of PHI and the security of PHI and ePHI. NOW, THEREFORE, the parties hereto agree as follows: 1. Definitions. When used in this Agreement and capitalized, the following terms have the following meanings: (a) "Breach" shall mean the unauthorized acquisition, access, use, or disclosure of PHI which comprises the security or privacy of such information. However, the term 'breach' shall not include (1) any unintentional acquisition, access, or use of PHI by an employee or individual acting under the authority of a covered entity or business associate if such acquisition, access, or use was made in good faith and within the course and scope of the employment or other professional relationship of such employee or individual, respectively, with the covered entity or business associate; and such information is not further acquired, accessed, used, or disclosed by any person; or (2) any inadvertent disclosure from an individual who is otherwise authorized to access protected health information at a facility operated by a covered entity or business associate to another similarly situated individual at same facility; and (3) any such information received as a result of such disclosure is not further acquired, accessed, used, or disclosed without authorization by any person. (b) "Electronic Protected Health Information" or "ePHI" shall mean Protected Health Information transmitted by electronic media or maintained in electronic media. BOSS>MandatOlY Standards>Documents>Business Associate Agreement including Security 11-2009 53 (c) "Individuar' shall have the same meaning as the term "Individual" in 45 C.F.R. ~164.103 and shall include a person who qualifies as a personal representative in accordance with 45 C.F .R. ~ 164.502(g). (d) "Privacy Rule" shall mean the Standards for Privacy of Individual Identifiable Health Information as set forth at 45 C.F .R. Parts 160 and 164 Subparts A andE. (e) "Protected Health Information" or "pm' shall have the same meaning as the term "protected health information" in 45 C.F.R. ~ 160.103, limited to the information created or received by Business Associate from or on behalf of Covered Entity. (f) "Required by Law" shall have the same meaning as the term "required by law" in 45 C.F.R. ~ 164.103. (g) "Secretary" shall mean the Secretary of the Department of Health and Human Services or his or her designee. (h) "Security Incident" shall mean any attempted or successful unauthorized access, use, disclosure, modification or destruction of information or systems operations in an electronic information system. (i) "Security Rule" shall mean the Standards for Security of PHI, including ePHI, as set forth at 45 C.F.R. Parts 160 and 164 Subpart C. G) "Unsecured Protected Health Information" shall mean protected health information that is not rendered unusable, unreadable, or indecipherable to unauthorized individuals through the use of a technology or methodology specified by the Secretary. Terms used but not defmed in this Agreement shall have the same meaning as those terms in the HIP AA regulations. 2. Oblie:ations and Activities of Business Associate Ree:ardine: pm. (a) Business Associate agrees to not use or further disclose PHI other than as permitted or required by this Agreement or as Required by Law. (b) Business Associate agrees to use appropriate safeguards to prevent use or disclosure of the PHI other than as provided for by this Agreement. (c) Business Associate agrees to ensure that any agents, including sub- contractors (excluding entities that are merely conduits), to whom it provides PHI agree to the same restrictions and conditions that apply to Business Associate with respect to such information. BOSS>Mandatory Standards>Documents>Business Associate Agreement including Security 12-2009 Page 2 54 (d) Business Associate agrees to provide access, at the request of Covered Entity, and in a reasonable time and manner designated by Covered Entity, to PHI in a Designated Record Set that is not also in Covered Entity's possession, to Covered Entity in order for Covered Entity to meet the requirements under 45 C.F .R. ~ 164.524. (e) Business Associate agrees to make any amendment to PHI in a Designated Record Set that the Covered Entity directs or agrees to pursuant to 45 C.F.R. ~ 164.526 in a reasonable time and manner designated by Covered Entity. (f) Business Associate agrees to make internal practices books and records relating to the use and disclosure of PHI available to the Secretary, in a reasonable time and manner as designated by the Covered Entity or Secretary, for purposes of the Secretary determining Covered Entity's compliance with the Privacy Rule. Business Associate shall immediately notify Covered Entity upon receipt or notice of any request by the Secretary to conduct an investigation with respect to PHI received from the Covered Entity. (g) Business Associate agrees to document any disclosures of PHI that are not excepted under 45 C.F.R. ~ 164.528(a)(1) as would be required for Covered Entity to respond to a request by an Individual for an accounting of disclosures of PHI in. accordance with 45 C.F.R. ~ 164.528. (h) Business Associate agrees to provide to Covered Entity or an Individual, in a time and manner designated by Covered Entity, information collected in accordance with paragraph (g) above, to permit Covered Entity to respond to a request by an Individual for an accounting of disclosures of PHI in accordance with 45 C.F.R. ~ 164.528. (i) Business Associate agrees to use or disclose PHI pursuant to the request of Covered Entity; provided, however, that Covered Entity shall not request Business Associate to use or disclose PHI in any manner that would not be permissible under the Privacy Rule if done by Covered Entity. 3. Permitted Uses and Disclosures of Pill bv Business Associate. (a) Business Associate may use or disclose PHI to perform functions, activities or services for, or on behalf of, Covered Entity provided that such use or disclosure would not violate the Privacy Rule if done by Covered Entity. (b) Business Associate may use PHI for the proper management and administration of Business Associate and to carry out the legal responsibilities of Business Associate. BOSS>Mandatory Standards>Documents>Business Associate Agreement including Security 12-2009 Page 3 55 (c) Business Associate may disclose PHI for the proper management and administration of Business Associate and to carry out the legal responsibilities of Business Associate if: (i) such disclosure is Required by Law, or (ii) Business Associate obtains reasonable assurances from the person to whom the information is disclosed that such information will remain confidential and used or further disclosed only as Required by Law or for the purposes for which it was disclosed to the person, and the person agrees to notify Business Associate of any instances of which it is aware that the confidentiality of the information has been breached. (d) Business Associate shall limit the PHI to the extent practicable, to the limited data set or if needed by the Business Associate, to the minimum necessary to accomplish the intended purpose of such use, disclosure or request subject to exceptions set forth in the Privacy Rule. (e) Business Associate may use PHI to provide Data Aggregation services to Covered Entity as permitted by 42 C.F.R. ~ 164.504(e)(2)(i)(B). 4. Oblieations of Covered Entitv Ree:ardine pm. (a) Covered Entity shall provide Business Associate with the notice of privacy practices that Covered Entity produces in accordance with 45 C.F.R. ~ 164.520, as well as any changes to such notice. (b) Covered Entity shall provide Business Associate with any changes in, or revocation of, authorization by an Individual to use or disclose PHI, if such changes affect Business Associate's permitted or required uses and disclosures. (c) Covered Entity shall notify Business Associate of any restriction to the use or disclosure of PHI that Covered Entity has agreed to in accordance with 45 C.F.R. ~ 164.522, if such restrictions affect Business Associate's permitted or required uses and disclosures. (d) Covered Entity shall require all of its employees, agents and representatives to be appropriately informed of its legal obligations pursuant to this Agreement and the Privacy Rule and Security Standards required by HIP AA and will reasonably cooperate with Business Associate in the performance of the mutual obligations under this Agreement. BOSS>Mandatory Standards>Documents>Business Associate Agreement including Security 12-2009 Page 4 56 5. Security of Protected Health Information. (a) Business Associate has implemented policies and procedures to ensure that its receipt, maintenance, or transmission of all protected health information ("Pill"), either electronic or otherwise, on behalf of Covered Entity complies with the applicable administrative, physical, and technical safeguards required protecting the confidentiality, availability and integrity of Pill as required by the HIP AA Privacy Rules and Security Standards. (b) Business Associate agrees that it will ensure that agents or subcontractors agree to implement the applicable administrative, physical, and technical safeguards required to protect the confidentiality, availability and integrity of Pill as required by HIP AA Privacy Rules and Security Standards. (c) Business Associate agrees to report to Covered Entity any Security Incident (as defmed 45 C.F.R. Part 164.304) of which it becomes aware. Business Associate agrees to report the Security Incident to the Covered Entity as soon as reasonably practicable, but not later than 10 business days from the date the Business Associate becomes aware of the incident. (d) Business Associate agrees to establish procedures to mitigate, to the extent possible, any harmful effect that is known to Business Associate of a use or disclosure of Pill by Business Associate in violation of this Agreement. (e) Business Associate agrees to immediately notify Covered Entity upon discovery of any Breach of Unsecured Protected Health Information (as defmed in 45 C.F.R. ~~ 164.402 and 164.410) and provide to Covered Entity, to the extent available to Business Associate, all information required to permit Covered Entity to comply with the requirements of 45 C.F.R. Part 164 Subpart D. (f) Covered Entity agrees and understands that the Covered Entity is independently responsible for the security of all Pill in its possession (electronic or otherwise), including all Pill that it receives from outside sources including the Business Associate. 6. Term and Termination. (a) Term. This Agreement shall be effective as of the Effective Date and shall remain in effect until the Business Associate relationship with the Covered Entity is terminated and all Pill is returned, destroyed or is otherwise protected as set forth in Section 7(d). BOSS>Mandatory Standards>Documents>Business Associate Agreement including Security 12-2009 Page 5 57 (b) Termination for Cause by Covered Entity. Upon Covered Entity's knowledge of a material breach by Business Associate, Covered Entity shall provide an opportunity for Business Associate to cure the breach. If Business Associate does not cure the breach within 30 days from the date that Covered Entity provides notice of such breach to Business Associate, Covered Entity shall have the right to immediately terminate this Agreement and the underlying services agreement between Covered Entity and Business Associate. (c) Termination by Business Associate. This Agreement may be terminated by Business Associate upon 30 days prior written notice to Covered Entity in the event that Business Associate, acting in good faith, believes that the requirements of any law, legislation, consent decree, judicial action, governmental regulation or agency opinion, enacted, issued, or otherwise effective after the date of this Agreement and applicable to Pill or to this Agreement, cannot be met by Business Associate in a commercially reasonable manner and without significant additional expense. (d) Effect of Termination. Upon termination of this Agreement for any reason, at the request of Covered Entity, Business Associate shall return or destroy all Pill received from Covered Entity, or created or received by Business Associate on behalf of Covered Entity. Business Associate shall not retain any copies of the Pill unless necessary for proper document retention/archival purposes only or if such Pill is stored as a result of backup email systems that store emails for emergency backup purposes. If the return or destruction of Pill is infeasible, Business Associate shall extend the protections of this Agreement to such Pill and limit further uses and disclosures of such Pill to those purposes that make the return or destruction infeasible, for so long as Business Associate maintains such Pill. 7. Amendment. The parties may agree to amend this Agreement from time to time in any other respect that they deem appropriate. This Agreement shall not be amended except by written instrument executed by the parties. 8. Indemnification. Business Associate shall indemnify and hold harmless Covered Entity from and against any and all costs, expenses, claims, demands, causes of action, damages, attorneys' fees and judgments that arise out of or that may be imposed upon, incurred by, or brought against Covered Entity to the extent directly resulting from a breach of this Agreement or any violation of the Privacy Rule or other applicable HIP AA regulations by Business Associate. The indemnification obligations provided for in this Section will commence on the effective date of this Agreement and will survive its termination. BOSS>Mandatory Standards>Documents>Business Associate Agreement including Security 12-2009 Page 6 58 Covered Entity shall indemnify and hold harmless Business Associate from and against any and all costs, expenses, claims, demands, causes of action, damages, attorneys' fees and judgments that arise out of or are imposed upon, incurred by, or brought against Business Associate to the extent directly resulting from a breach of this Agreement or any violation of the Privacy Rule or other applicable HIPAA regulations by Covered Entity. The indemnification obligations provided for in this Section will commence on the effective date of this Agreement and will survive its termination. 9. Severability. The parties intend this Agreement to be enforced as written. However, (i) if any portion or provision of this Agreement will to any extent be declared illegal or unenforceable by a duly authorized court having jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, will not be affected thereby, and each portion and provision of this Agreement will be valid and enforceable to the fullest extent permitted by law; and (ii) if any provision, or part thereof, is held to be unenforceable because of the duration of such provision, the Covered Entity and the Business Associate agree that the court making such determination will have the power to modify such provision, and such modified provision will then be enforceable to the fullest extent permitted by law. 10. Notices. All notices, requests, consents and other communications hereunder will be in writing, will be addressed to the receiving party's address set forth below or to such other address as a party may designate by notice hereunder, and will be either (i) delivered by hand, (ii) made facsimile transmission, (Hi) sent by overnight courier, or (iv) sent by registered mail or certified mail, return receipt requested, postage prepaid. If to the Covered Entity: City of Farmington 430 Third Street Farmington, MN 55024 If to the Business Associate: Gallagher Benefit Services, Inc. 3600 American Boulevard West Suite 500 Bloomington, MN 55431 BOSS>Mandatory Standards>Documents>Business Associate Agreement including Security 12-2009 Page 7 59 11. Ree:ulatorv References. A reference in this Agreement to a section in the Privacy Rule means the referenced section or its successor, and for which compliance is required. 12. Headine:s and Caotions. The headings and captions of the various subdivisions of the Agreement are for convenience of reference only and will in no way modify or affect the meaning or construction of any of the terms or provisions hereof. 13. Entire Ae:reement. This Agreement sets forth the entire understanding of the parties with respect to the subject matter set forth herein and supersedes all prior agreements, arrangements and communications, whether oral or written, pertaining to the subject matter hereof. 14. Bindine: Effect. The provisions of this Agreement shall be binding upon and shall inure to the benefit of both Parties and their respective successors and assigns. 15. No Waiver of Rie:hts. Powers and Remedies. No failure or delay by a party hereto in exercising any right, power or remedy under this Agreement, and no course of dealing between the parties hereto, will operate as a waiver of any such right, power or remedy of the party. No single or partial exercise of any right, power or remedy under this Agreement by a party hereto, nor any abandonment or discontinuance of steps to enforce any such right, power or remedy, will preclude such party from any other or further exercise thereof or the exercise of any other right, power or remedy hereunder. The election of any remedy by a party hereto will not constitute a waiver of the right of such party to pursue other available remedies. No notice to or demand on a party not expressly required under this Agreement will entitle the party receiving such notice or demand to any other or further notice or demand in similar or other circumstances or constitute a waiver of the right of the party giving such notice or demand to any other or further action in any circumstances without such notice or demand. The terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only by written document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent will be deemed to be or will constitute a waiver or consent with respect to any other terms or provisions of this Agreement, whether or not similar. Each such waiver or consent will be effective only in the specific instance and for the purpose for which it was given, and will not constitute a continuing waiver or consent. 16. Governine: Law. This Agreement will be governed by and construed in accordance with the laws of the State of Illinois. BOSS>Mandatory Standards>Documents>Business Associate Agreement including Security 12-2009 Page 8 60 17. Interoretation. It is the Parties' intent to comply strictly with all applicable laws, including without limitation, HIPAA, state statutes, or regulations (collectively, the "Regulatory Laws"), in connection with this Agreement. In the event there shall be a change in the Regulatory Laws, or in the reasoned interpretation of any of the Regulatory Laws or the adoption of new federal or state legislation, any of which are reasonably likely to materially and adversely affect the manner in which either Party may perform or be compensated under this Agreement or which shall make this Agreement unlawful, the Parties shall immediately enter into good faith negotiations regarding a new arrangement or basis for compensation pursuant to this Agreement that complies with the law, regulation or policy and that approximates as closely as possible the economic position of the Parties prior to the change. In addition, the Parties hereto have negotiated and prepared the terms of this Agreement in good faith with the intent that each and every one or the terms, covenants and conditions herein be binding upon and inure to the benefit of the respective Parties. To the extent this Agreement is in violation of applicable law, then the Parties agree to negotiate in good faith to amend this Agreement, to the extent possible consistent with its purposes, to conform to law. IN WITNESS WHEREOF, the parties have executed this Business Associate Agreement as of the Effective Date. BUSINESS ASSOCIATE: Gallagher Benefit Services, Inc. By: Print Name: Michael O'Brien Title: Area President COVERED ENTITY: City of Farmington By: Print Name: Title: BOSS>Mandatory Standards>Documents>Business Associate Agreement including Security 12-2009 Page 9 61 IF City of Farmington 325 Oak Street. Farmington. MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us TO: Mayor, Councilmembers, and City Administrator FROM: Brenda Wendlandt, Human Resources Director SUBJECT: Appointment Recommendation - 2010 Summer Seasonal Staff DATE: June 21,2010 INTRODUCTION The recruitment and selection process for the appointment of the 2010 Summer Staff has been completed. DISCUSSION After a thorough review by the Parks & Recreation Department and the Human Resources Office, offers of employment have been made to the individuals shown on the attached sheet. BUDGET IMPACT Funding is authorized in the 2010 budget. ACTION REOUESTED For your information. Respectfully submitted, ;' ,//~, I , .d, -! ~.ti /l . /.:.,L .....~ML..;:1ftttf",(J..1(,(!.4:' . Brenda Wendlandt, SPHR Human Resources Director cc: personnel file 62 2010 SEASONAL STAFF Pool Connor Carroll Carolyn Ellis Andrew Froehling Danielle Froehling Krystle Graber Loren Hatten Abby Haugen Nick Haugen Calista Huls Allison Hunter Sarah Hunter Derek Kuehn Anna Nicolai Elizabeth Nikoley Amanda Pellicci Andrea Pellicci Kelly Schimmel Cory T onsager Kayla Watne Rec Programs Heidi Donnelly Marc Estes Anna Findsen Kayla Hinrichsen Kyle Hinrichsen Dominic Olhoff Keri Pietsch Kirstee Rotty Emilee Shearer Sean Shipman Breanna Thompson Dylan West Logan West Park Maintenance Sam Carey Luke Landwehr Arnie Retzlaff Alex Roschen Jared Rowan Engineering Intern Thomas Strid 63 ~ City of Farmington 430 Third Street l:armington, Minnesota 651.280.6800. Fax 651.280.6899 W\"w.ci.lanningttm.mn.u:; TO: Mayor, Councilmembers, and City Administrator FROM: Brenda Wendlandt, Human Resources Director SUBJECT: Acknowledge Resignation - Administration DATE: June 21, 2010 INTRODUCTION The City received notice of Ms. Joan Mc Intire's resignation from her position as a part-time Liquor Clerk. DISCUSSION The Human Res~urces Office received notification that Ms. Joan Mc Intire has resigned from her position as a part-time liquor clerk. Ms. Mc Intire has been with the City for approximately 10 years and has been a valued member of the City Organization. The City has appreciated her commitment to the organization and wishes her well in her future endeavors. ACTION REOUESTED Acknowledge the resignation of Ms. Joan Mc Intire, effective June 21,2010. Respectfully Submitted, l /1 I ..~d~4C~:;;:'d~f'H-{jC Brenda Wendlandt, SPHR Human Resources Director cc: Personnel file 64 71; City of Farmington 430 Third Street Fanuington, Minnesota 651.280.6800 · Fax 651.280.6899 www.ci.larm;ngttm.mn.u..i TO: Mayor, Councilmembers and City Administrator FROM: Brenda Wendlandt, Human Resources Director SUBJECT: Termination Recommendation - Administration Department DATE: June 21, 2010 INTRODUCTION AND DISCUSSION Mr. Toby Hewitt has been employed as a part-time liquor clerk since February 4, 2000. Unfortunately, he is not available to work any scheduled shift and, therefore, can no longer meet the terms and conditions of employment. After careful review, staff is recommending that Mr. Hewitt be terminated from employment. Mr. Hewitt has been notified, by mail, of this action. ACTION REOUESTED Approve the termination of Mr. Hewitt's employment effective June 21, 2010. 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CI) tII 1:: 11 0 -\0. ~ C Gl 5 It: '0 E C <( ~ iU' E 0 1: 0 :::J CJl ~ a 9 -'" ~I 0 :;: Gl :::l .c ~ U U Iii ~I '" I- ~ It) 0 It: Z .c U ~~ City of Farmington 430 Third Street l;armington, Minnesota 651.280.6800. Fax 651.280.6899 www:ci.mrmingtlm.mn.LL" TO: Mayor, Councilmembers, City Administrator FROM: Lisa Shadicl{, Administrative Services Director SUBJECT: Approve Therapeutic Massage License DATE: June 21, 2010 INTRODUCTION Pursuant to City Ordinance 3-15-8, a public hearing must be held to issue a Therapeutic Massage License. DISCUSSION Ms. Michele Connors has applied for a Therapeutic Massage License. Ms. Connors will be practicing therapeutic massage at Farmington Barber and Beauty at 324 Third Street. The required fees have been received and the application has been reviewed by the Farmington Police Department. BUDGET IMPACT The fees collected are included in the revenue estimates of the 2010 budget. ACTION REOUIRED Approve a Therapeutic Massage License for Michele Connors at 324 Third Street. Respectfully submitted, Lisa Shadick, CMC Administrative Services Director 90 JOeL City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800. Fax 651.280.6899 www.ci.tarmington.mn.LL.1 TO: Mayor, Councilmembers, City Administrator FROM: Kevin Schorzman, P .E., City Engineer SUBJECT: Walnut Street Reconstruction Project-Change Order #1 DATE: June 21, 2010 INTRODUCTION Council awarded the contract for the Walnut Street Reconstruction Project at the February 16, 2010 City Council meeting. DISCUSSION This change order reflects changes to the project related to the construction of the trunk storm sewer line from Elm Street to Walnut Street along TH-3. It includes three items: 1. Extra work related to an unidentified sanitary sewer crossing ($310.70) 2. Delay costs associated with backflow of hydrant flushing water ($233.00) 3. Extra work related to unidentified water line crossings ($6,229.00) Once construction on the project began, a previously unknown sanitary sewer line was found that crosses TH-3. The line was not shown on the City's utility maps. The line is very shallow and thus conflicted with the location of the storm sewer line that was being constructed. The frrst item on this change order is compensation to the contractor for additional work necessary to remove a portion of the sanitary sewer line, and then reconnection of the line once the storm sewer was installed. The second item is compensation to the contractor for delays due to water backing up into the excavation and structures near the south end of the new storm sewer line. During the last day of construction on the storm sewer line, hydrants were flushed in the area south of the project as part of the City's semi-annual hydrant flushing. Storm water in the area of town that was being flushed is currently handled through surface drainage. This surface drainage ultimately runs to the area in which the contractor was working. The contractor had to stop work until the water had dissipated. The fmal item on the change order is related to the sanitary sewer line that crosses TH-3. Once the line was discovered, the storm sewer design was changed to lower it approximately two feet to avoid the conflict with the existing crossing. This design change allowed the sanitary sewer line to be temporarily removed and replaced at the same elevation without conflict with the 91 Walnut Street Change Order #1 June 21, 2010 Page 2 of2 storm sewer. It also allowed water lines to be left at the same elevation which eliminated the need for two water main offsets. The lowering of the line required additional excavation. It also required that barrel sections and rings be added to the catch basin and manhole structures. This item compensates the contractor for all additional costs associated with the lowering of the storm sewer. It should be noted that because the line was changed, a $4,000 savings to the project was realized because two water main crossings did not have to be offset. BUDGET IMPACT This change order amount of $6,772.70 is within the project budget. ACTION REOUESTED Approve, by motion, Change Order #1 for the Walnut Street Reconstruction Project in the amount of $6,772.70. Respectfully submitted, Kevin Schorzman, P .E. City Engineer cc: file 92 Data June 16, 2010 Mutual Insurance Com any CHANGE ORDER NO. 1 WALNUT STREET RECONSTRUCTION PROJECf CITY OF FARMINGTON PROJECf NO. 09-06 DescrlDtlon of Work The following changes address improvements to the Walnut Street Reconstruction Project: A) Item A accounts for the additional work in removing and replacing an existing active 811 clay sewer pipe that was discovered crossing the proposed storm alignment on 8th Street. This pipe was not shown on any of our City basemaps and therefore was not reflected in the plans and specifications. 8) Item 8 accounts for the extra work dealing with and the time lost as a result of water that was discharged Into their trench through the storm system during hydrant flushing south of the project area. C) Item C accounts for the additional labor and materials that were necessary to lower the storm sewer along 8th street. This was done to stay below an unknown existing sanitary sewer line as well as to avoid offsetting the existing watermain ($2,000/ ea.) at both the intersections of 8th and Oak Street and 8th and Spruce Street. Contract Unit Total ITEM No. Item Unit Quantity Price Amount A 51A 8" SANITARY PIPE REMOVE/REPLACIi: LS $310.70 $310.70 B 1318 STORM WATER DELAY LS $233.00 $233.00 C 131C STORM WATER LOWERING LS $6,229.00 $6,229.00 TOTAL CHANGE ORDER NUMBER 1 $6,772.70 ChangeOrderl.xls 93 Original Contract Amount Previous Change Orders This Change Order Revised Contract Amount (including this change order) $1,889,483.73 $0.00 $6,772.70 $1,896,256.43 CHANGE IN CONTRACT TIMES Original Contract Times: Substantial Completion (days or date): Ready for final Payment (days or date): Increase of this Change Order: Substantial Completion (days or date): Ready for final Payment (days or date): Contract Time with all approved Change Orders: Substantial Completion (days or date): Ready for final Payment (days or date): Recommended for Approval by: KI2.' S k!ELL~ ~. Kd..L-. Date: to / I (., / 2.-0 j 0 Approved by Contractor: S.M. Hentges & Sons Inc. ~hr~ ~~~~ ( Date Approved by Owner: CITY OF FARMINGTON Date cc: City of Farmington S.M. Hentges & Sons Inc. Liberty Mutual Insurance Company Bonestroo & Assoc. Change Order l.x1s 94 jOb City of Farmington 430 Third Street farmington, l\.1innesota 651.280.6800. Fax 651.280.6899 www.ci.tarmington.nm.LL.I TO: Mayor, Councilmembers, City Administrator FROM: Kevin Schorzman, P .E., City Engineer SUBJECT: Dakota County 2011 - 2015 CIP - City Requests DATE: June 21, 2010 INTRODUCTION Dakota County is in the process of preparing their 2010-2014 Capital Improvement Program (CIP). City staff has previously met with the County to discuss potential projects to include in their draft CIP. DISCUSSION Pursuant to our meeting with Dakota County staff, the following projects are identified that the City would like included in Dakota County's 2010-2014 CIP: CR 64 (19Sh Street),fromAutumn Glen to TH 3-2011 CR 64 (195th Street) from Autumn Glen to Trunk Highway 3 has been identified by the City and the County as an arterial east-west corridor in Farmington and through the County. The project is complete. The City acknowledges the County's effort to fund this project over time and asks that continuing consideration be given to programming the complete funding allocation. Intersection Traffic Control at Flagstaff and CSAH 50 - 2011-2015 Concerns have been raised regarding the potential need for traffic control at the intersection of CSAH 50 and Flagstaff Avenue once the new high school is open. Although the Farmington Area Transportation Study did not indicate an immediate need, it was indicated that preliminary design work would be programmed for this intersection. It is the intent of the City to engage in discussions with the County to determine the appropriate traffic control at this intersection. 195th Street, Flagstaff to Diamond Path -2010-2011 As a result of increased traffic, 195th Street would benefit from the addition of turn lanes or construction of an urban 3-lane section. Preliminary design in 2010 with fmal design in 2011. Traffic Control at Pilot Knob Road and 19Sh Street Intersection-2011-2013 Based on the Farmington Area Transportation Study, and traffic volumes at this intersection, design should begin in 2011 and planned construction should be in 2013. The City and County 95 Dakota County 2011-2015 CIP June 21,2010 Page 2 of2 should explore possibilities for Federal funding for this project, and possibly combine it with improvements on 195th Street from Flagstaff to Diamond Path. BUDGET IMPACT It is currently the County's policy that the costs of the roadway improvements are split 55% County and 45% City. City fmancial participation in the projects identified is yet to be determined but would likely include a combination of funding mechanisms that would be identified in individual project feasibility reports. ACTION REOUESTED For information and discussion. Projects identified to be forwarded to Dakota County for consideration for inclusion in their 2011-2015 draft CIP. Respectfully Submitted, Kevin Schorzman, P .E., City Engineer cc: file 96 //CL City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800. Fax 651.280.6899 www.ci.tarm;ngton.nm.LL.l TO: Mayor, Councilmembers, City Administrator FROM: Kevin Schorzman, P.E., City Engineer SUBJECT: Amend 2010 Fee Schedule DATE: June 21, 2010 INTRODUCTION At the May 17, 2010, Council tabled action on this item until the June 21, 2010 meeting to allow Councilmembers time to meet with staff to discuss this item. DISCUSSION During workshops in January and March, development fees were discussed. It was the consensus of Council to move forward with a phased-in approach to the Storm Water Management Fee. Attached is a sheet showing two options for the phased in approach, as well as estimated fees for the next 30 years. It is recommended that the fees be reviewed when the Comprehensive Plan is reviewed, and that adjustments be made if necessary. BUDGET IMPACT None. ACTION REOUESTED Select the desired option for the Surface Water Management Fee, and adopt the attached ordinance adding the section "PERMITS-Subdivisions/Developments", with the preferred option for the Surface Water Management Fee, to the 2010 Fee Schedule. Respectfully submitted, Kevin Schorzman, P .E. City Engineer cc: file 97 CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA SUMMARY OF ORDINANCE NO. 010-624 AN ORDINANCE AMENDING THE 2010 FEE SCHEDULE TO ESTABLISH FEES FOR SUBDIVISON AND DEVELOPMENT PERMITS NOTICE IS HEREBY GIVEN that, on June 21, 2010, Ordinance No. 010-624 was adopted by the City Council of the City of Farmington, Minnesota. NOTICE IS FURTHER GIVEN that, because of the lengthy nature of Ordinance No. 010-624, the following summary of the ordinance has been prepared for publication. NOTICE IS FURTHER GIVEN that the fees for subdivision and development permits established by the ordinance include for example plat fees, PUD fees, and surface water management fees. A printed copy of the whole ordinance is available for inspection by any person during the City's regular office hours. APPROVED for publication by the City Council of the City of Farmington this 2151 day of June, 2010. ATTEST: SEAL Approved as (0 fonn the..24:tl-day of June 2:~. City Att ey - PubJi,hed;u the Farm;ngton Independent the r~ay of M 20]0. . r- \ CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA ORDINANCE NO. 010-624 AN ORDINANCE AMENDING THE 2010 FEE SCHEDULE TO ESTABLISH FEES FOR SUBDIVISON AND DEVELOPMENT PERMITS THE CITY COUNCIL OF THE CITY OF FARMINGTON ORDAINS: SECTION 1. The 2010 Fee Schedule is hereby amended by adding the following text in its entirety directly after the section "PERMITS-Building" PERMITS - Subdivisions/Developments AMOUNT Review of Environmental Assessment Worksheet and Environmental Impact Statement, AUAR GIS Fees (Geographic Information System) Staff time, consultant review time New and Redevelopment *** $55/10t or $90/ac minimum Parkland Contribution Parkland and Trail Fees - All Residential Zones See Parkland Dedication Ordinance Parkland and Trail Fees - Commercial/Industrial Zones See Parkland Dedication Ordinance Park Development Fee - Residential, Commercial/ Industrial Zones $18,829/acre Plat Fees Pre-Development Contract Surety Single Family Multi-Family Mixed Use Commercial Preliminary Plat Fee Final Plat Fee $350 per lot $ 65 per unit $300 per unit $ 0.25 per sq. ft. $750 base + $1 O/lot $300 $500 + $22/ac $300 P.U.D. (Planned Unit Development) P. U. D. Amendment Surface Water Mgmt. Fee (Development) *** The Surface Water Management Fee funds the trunk storm water improvements identified in the City's Surface Watcr Management Plan. Option I-Option 2 Residential, low: $7,841 - $7,841 density per acre Residential, high: $13,898 - $12,719 density per acre Comm.llndustrial/:$16,745 - $15,330 Institutional per acre I ~ Water Main Trunk Fee $3,975/acre The Watermain Trunk Fee funds the trunk improvements identified in the City's Water Supply and Distributiort. Plan. Surface Water Quality Management The Surface Water Quality Management Fee is collected to fund future excavation of sediments deposited in sedimentation ponds. Residential (Single/Multi) Commercial/lndust/School/Other $80/acre $ I 65/acre Water Treatment Plant Fee $960/REU All parcels being developed are charged 1 REU minimum. Commercial, Industrial, Institutional developments and redevelopments are charged multiple REUs based on 1 RED = 274 gpd. Established in 1997, this fee will help fund the future Water Treatment Plant Note: REU = Residential Equivalency Unit Sanitary Sewer Trunk Area Charge *** The Sanitary Sewer Trunk Area Charge funds trunk improvements identified in the City's Comprehensive Sanitary Sewer Plan. $2, 170/acre *** Notefee calculation formula on page 7. ***Fee Calculation Formula *** Fees shall be based on the gross area of the development, less jloodways, steep slopes, dedicated parkland, and delineated wetlands. Credit for Sanitary Sewer Trunk Area Charge See Schedule F SECTION 2. Effective Date and Codification. This ordinance shall be effective upon its passage and publication according to law. This ordinance need not be codified but may be attached to the City Code as an Appendix. .. ADOPTED this 21 st day of June, 2010, by the City Council of the City of Farmington. CITY OF FARMINGTON BY~~==- Todd Larson, Mayor SEAL: ATTEST: Approved as to form the C:;L/rM day of June 2010. B~ City om - - - -- - -- -- - - ---- -- --- Surface Water Management Fees per Acre OPTION 1 OPTION 2 Phase in Low Density Residential in 2010 Phase in High Density Residential and Begin Phasing All Categories in 2010 Commercial/lndustiral Beginning in 2013 Year Low Density High Density Com m./I ndust. Year Low Density High Density Comm./lndust. 2010 $ 7,841 $ 13,898 $ 16,745 2010 $ 7,841 $ 12,719 $ 15,330 2011 $ 8,692 $ 15,409 $ 18,561 2011 $ 8,692 $ 12,999 $ 15,667 2012 $ 9,577 $ 16,979 $ 20,448 2012 $ 9,577 $ 13,285 $ 16,012 2013 $ 10,497 $ 18,611 $ 22,408 2013 $ 10,497 $ 13,898 $ 16,745 2014 $ 11 ,453 $ 20,307 $ 24,446 2014 $ 11 ,453 $ 15,409 $ 18,561 2015 $ 11 ,705 $ 20,754 $ 24,984 2015 $ 11,705 $ 16,979 $ 20,448 2016 $ 11,962 $ 21,210 $ 25,533 2016 $ 11,962 $ 18,611 $ 22,408 2017 $ 12,225 $ 21,677 $ 26,095 2017 $ 12,225 $ 20,307 $ 24,446 2018 $ 12,494 $ 22,154 $ 26,669 2018 $ 12,494 $ 20,754 $ 24,984 2019 $ 12,769 $ 22,641 $ 27,256 2019 $ 12,769 $ 21,210 $ 25,533 2020 $ 13,050 $ 23,139 $ 27,856 2020 $ 13,050 $ 21,677 $ 26,095 2021 $ 13,337 $ 23,648 $ 28,468 2021 $ 13,337 $ 22,154 $ 26,669 2022 $ 13,631 $ 24,169 $ 29,095 2022 $ 13,631 $ 22,641 $ 27,256 2023 $ 13,931 $ 24,700 $ 29,735 2023 $ 13,931 $ 23,139 $ 27,856 2024 $ 14,237 $ 25,244 $ 30,389 2024 $ 14,237 $ 23,648 $ 28,468 2025 $ 14,550 $ 25,799 $ 31,058 2025 $ 14,550 $ 24,169 $ 29,095 2026 $ 14,870 $ 26,367 $ 31,741 2026 $ 14,870 $ 24,700 $ 29,735 2027 $ 15,197 $ 26,947 $ 32,439 2027 $ 15,197 $ 25,244 $ 30,389 2028 $ 15,532 $ 27,539 $ 33,153 2028 $ 15,532 $ 25,799 $ 31,058 2029 $ 15,874 $ 28,145 $ 33,882 2029 $ 15,874 $ 26,367 $ 31,741 2030 $ 16,223 $ 28,765 $ 34,627 2030 $ 16,223 $ 26,947 $ 32,439 2031 $ 16,580 $ 29,397 $ 35,389 2031 $ 16,580 $ 27,539 $ 33,153 2032 $ 16,944 $ 30,044 $ 36,168 2032 $ 16,944 $ 28,145 $ 33,882 2033 $ 17,317 $ 30,705 $ 36,964 2033 $ 17,317 $ 28,765 $ 34,627 2034 $ 17,698 $ 31,381 $ 37,777 2034 $ 17,698 $ 29,397 $ 35,389 2035 $ 18,088 $ 32,071 $ 38,608 2035 $ 18,088 $ 30,044 $ 36,168 2036 $ 18,485 $ 32,777 $ 39,457 2036 $ 18,485 $ 30,705 $ 36,964 2037 $ 18,892 $ 33,498 $ 40,325 2037 $ 18,892 $ 31,381 $ 37,777 2038 $ 19,308 $ 34,235 $ 41,212 2038 $ 19,308 $ 32,071 $ 38,608 2039 $ 19,733 $ 34,988 $ 42,119 2039 $ 19,733 $ 32,777 $ 39,457 2040 $ 20,167 $ 35,757 $ 43,046 2040 $ 20,167 $ 33,498 $ 40,325 All fees include an Inflation factor of 2.2% from the previous year. Fees should be reviewed and adjusted every few years based on development and cost estimates for the Trunk Stormwater System. 101 1/6 City of Farmington 430 Third StreeT .'a.rmington, Minnesota 651.280.6800. Fax 651.280.6899 www.ci.mnningttm.nm.u..1 TO: Mayor, Councilmembers and City Administrator FROM: Randy Distad, Parks and Recreation Director SUBJECT: Approve Schmitz-Maki Arena Improvement Project Change Order DATE: June 21,2010 INTRODUCTION At the June 7, 2010 City Council meeting a request was made to approve a change order for the Schmitz- Maki Improvement Project. At the meeting the City Council tabled the decision until its June 21,2010 meeting and asked for discussion on this item to occur at the June 14, 2010 City Council workshop. DISCUSSION Gary Kristofitz from Bonestroo attended the June 14, City Council workshop to explain the reasons for the change orders. The explanation given for each of the items needed to be approved in the change order were as follows: The drain tile is not needed since there isn't an issue with drainage around the building that would cause any water to come up under the floor. This is a deduct change order. The mop sink was requested by City of Farmington staff. He checked with the contractor about the cost that was quoted and was told that quoted costs were the true time and material costs and the 15% markup for overhead and profit, which is allowed in the project contract. The ventilation system was included in the dehumidification system project, which was not included as part of the overall construction project. The need for this item wasn't caught until the preconstruction meeting that was held on Apri122nd. This item is needed because it is a code requirement. The existing ventilation fan is not large enough to meet the code requirement for the ammonia refrigeration system. The panic bars on the three exit doors is a code requirement. The code change did not occur until after the project contract had been awarded. This is an item that wasn't discovered until a discussion took place with the inspector from the State of Minnesota who inspects a.mri1onia refrigeration systems. Information about this code change made by the State of Minnesota but was not provided/communicated to contractors who install this type of refrigeration system nor was it provided to mechanical engineers who design these systems so it was not known at the time that the original plans and specifications were created. Council members focused their discussion on the three add items on the change order. Council members seemed comfortable with moving forward with approving the request to add the panic bars on the three doors and adding the ventilation system and controls since they are needed in order to comply with the building code. Council members felt that the installation of the mop sink was something that the Farmington Youth Hockey Association (FYHA) could be approached about donating the materials and labor to install the sink and faucets. Council members also felt that since the contractor is finishing up the underground pipe work and is getting close to filling the hole, then they would be comfortable with allowing the contractor to rough-in the plumbing for the mop sink so the hole could be f1l1ed in and the concrete floor could be poured in the mechanical so the project can stay on schedule. Council members 102 felt that the mop sink and faucets could be completed later without holding up the project. Council members requested staff contact FYHA to see if they would have a member who is a licensed plumber who might be willing to donate the time and materials to install the mop sink and faucets. IfFYHA did not have a licensed plumber within its organization who could perform this work, then local plumbers should be contacted to see if they would be willing to either donate their time and materials to complete this work or submit a quote to complete the work. Staffhas since contacted the incoming President of FYHA but has not heard anything yet about FYHA's interest in donating time and materials for the installation of the mop sink and faucets. Staffhas discussed the rough in of the plumbing for the mop sink with both the City's Construction Manager and with the contractor. The contractor informed staff that they will rough in the plumbing for the mop sink at no cost to the City. BUDGET IMPACT There is currently $45,727.95 in contingency funding for the Project. The total net cost of the change order if approved, would reduce the contingency amount by $3,984.00. Below is a table illustrating the net affect the change order would have on the contingency funding. Arena Total Change Rough-In Subtotal Changer Contingency Project Order Adds (panic Plumbing Contingency Order Amount Contingency device hardware for Mop After Change Deduct After Change and ventilation Sink Order Adds (subsoil Order system and drainage Deducts controls) system) $45,727.95 $17,685 $0 $28,042.95 $13,701.00 $41,743.95 ACTION REOUESTED By motion, approve the Arena Project change order. Respectfully Submitted, Randy Distad, Parks and Recreation Director 103 1:) CI) '[ D. .. c CI) E CI) > e Q. .5 ca c e <C C) :s2 ... C) ca N :i t::: .tI ... CD 's .c u rn r-- - 'lit CD ... CD ... C) CD I N 'lit ..... en "CI .. CI) = M ~ M M !E ... ~ ::I i "0 tr' o CI) ... :i~ CI) 'E! ..,. ..,. ..,. ..,. ..,. 0 ! I() ..... - CD ... en en CD ... C) r-- c en N 'lit r-- en ca -1;) N M ~ M cD .c ~ CI) 0 ... ... .- ::I - .2>> tr' ... CI) O~ ..,. ..,. ..,. ..,. ..,. 'ii .. 0 .... E 0 0 ~ .. c CI) E E 0 .e- 0 ::I ~ tr' .. 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The only change is that shading has been added to show Council which proposed projects would overlap with areas that could potentially have existing area-wide assessments from the Pilot Knob Road, Ash Street or Elm Street projects. The current area-wide assessment map as well as information related to the assessments is also attached. BUDGET IMPACT None. ACTION REOUESTED This item has been provided for discussion purposes. Changes to the CIP plan suggested by a consensus of the Council will be incorporated into the CIP for approval at a future Council meeting. Respectfully submitted, Kevin Schorzman, P .E. City Engineer cc: file 105 ~ ~ ~ "0 ~s _0 >- ggg ..,.0..,. ~,na) ~..,.", ,..It" ... ~ ~- '" .,.... gg <'> . ..,.'" "'N o El N '" ;:; N 00 168 i~ ..,. "'''' '" ;:; N 88 00 Mt-: <'>N '" "'''' .... ;:; N gg "":a:) <'>N ..,. "'''' <tJ ;:; N 88 ~o ciJri "'N ..,. "'''' '" ;:; N 88 ....0 ~v- !::N ..,. ;:; N 80 ...8 ~M "'N <'> "'''' ,., ;:; N gg uiN" ON ..,. 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': ,- -1 r" \ / ~~:_-::~ If' /' " \ I ';_:~' ~ J i i., f I --- ..... -....1 I o 0.5 ,n1 I 1 Miles Prepared by the Dakota County 01l1ce of GIS. I i I --+ 11- ...Lr Jr ... .If'- ~ 3..l: '. I ,- i 1- c:'u......w'lI'Vq.c:a_rmIngll;lnv.r.Wd.....-...a\AlwWrd.........-..",lIlI Remaining Balance on Area-Wide Assessments Original Principal Balance Total Cost Original Assessment Balance Remaining Remaining Pilot Knob Road: $ 422.56 $ 84.52 $ 130.99 Ash Street: $ 499.54 $ 299.74 $ 424.64 Elm Street: $ 650.25 $ 520.20 $ 790.38 The numbers shown above are based on 1 Residential Equivalent Unit (REU) if the assessment was placed on the tax rolls and not pre-paid. 108 Report Name: Assessment PI City of Farmington Assessment P & I Schedule Printed: 6/15/2010 Page: 1 S/A Number: 140026 Description: CSAH31NRTH S/A Status: Levied PID: 14-01300-010-56 Property Addresss: 5379 190th St W Total Assessment Amt: $422.56 Interest Rate: 6.5000% Years: 15 1st Yr. Int. Months: 12 Pavment # Year PrinciDal Amt Interest Amt Pavment Amt Remaininl! Balance 1 2000 $28.17 $33.03 $61.20 $394.39 2 2001 $28.17 $25.64 $53.81 $366.22 3 2002 $28.17 $23.80 $51.97 $338.05 4 2003 $28.17 $21.97 $50.14 $309.88 5 2004 $28.17 $20.14 $48.31 $281.71 6 2005 $28.17 $18.31 $46.48 $253.54 7 2006 $28.17 $16.48 $44.65 $225.37 8 2007 $28.17 $14.65 $42.82 $197.20 9 2008 $28.17 $12.82 $40.99 $169.03 10 2009 $28.17 $10.99 $39.16 $140.86 11 2010 $28.17 $9.16 $37.33 $112.69 12 2011 $28.17 $7.32 $35.49 $84.52 13 2012 $28.17 $5.49 $33.66 $56.35 14 2013 $28.17 $3.66 $31.83 $28.18 15 2014 $28.18 $1.83 $30.01 $0.00 109 Report Name: Assessment PI City of Farmington Assessment P & I Schedule Printed: 6/15/2010 Page: 1 S/A Number: 140344 Description: Ash Street Project - Active S/A Status: Levied PID: 14-00600-010-01 Property Addresss: 22145 Chippendale Ave Total Assessment Amt: $499.54 Pavment # fil!! 1 2006 2 2007 3 2008 4 2009 5 2010 6 2011 7 2012 8 2013 9 2014 10 2015 11 2016 12 2017 13 2018 14 2019 15 2020 Interest Rate: 5.0000% Years: 15 1st Yr. Int. Months: 12 PrindDal Amt Interest Amt Pavment Amt Remaininl! Balance $33.30 $31.07 $64.37 $466.24 $33.30 $23.31 $56.61 $432.94 $33.30 $21.65 $54.95 $399.64 $33.30 $19.98 $53.28 $366.34 $33.30 $18.32 $51.62 $333.04 $33.30 $16.65 $49.95 $299.74 $33.30 $14.99 $48.29 $266.44 $33.30 $13.32 $46.62 $233.14 $33.30 $11.66 $44.96 $199.84 $33.30 $9.99 $43.29 $166.54 $33.30 $8.33 $41.63 $133.24 $33.30 $6.66 $39.96 $99.94 $33.30 $5.00 $38.30 $66.64 $33.30 $3.33 $36.63 $33.34 $33.34 $1.67 $35.01 $0.00 110 Report Name: Assessment PI City of Farmington Assessment P & I Schedule Printed: 6/15/2010 Page: 1 S/A Number: 140394 Description: ELM ST PROJ ACTIVE S/A Status: Levied PID: 14-03000-010-90 Property Addresss: 605 Linden St Total Assessment Amt: $650.25 Pavment # Year 1 2009 2 2010 3 2011 4 2012 5 2013 6 2014 7 2015 8 2016 9 2017 10 2018 11 2019 12 2020 13 2021 14 2022 15 2023 Interest Rate: 5.7500% Years: 15 1st Yr. Int. Months: 12 PrinciDal Amt Interest Amt Pavment Amt Remaininl! Balance $43.35 $59.10 $102.45 $606.90 $43.35 $34.90 $78.25 $563.55 $43.35 $32.40 $75.75 $520.20 $43.35 $29.91 $73.26 $476.85 $43.35 $27.42 $70.77 $433.50 $43.35 $24.93 $68.28 $390.15 $43.35 $22.43 $65.78 $346.80 $43.35 $19.94 $63.29 $303.45 $43.35 $17.45 $60.80 $260.10 $43.35 $14.96 $58.31 $216.75 $43.35 $12.46 $55.81 $173.40 $43.35 $9.97 $53.32 $130.05 $43.35 $7.48 $50.83 $86.70 $43.35 $4.99 $48.34 $43.35 $43.35 $2.49 $45.84 $0.00 111 lid City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800. Fax 651.280,6899 www.ci.t:mnin!.>tlm.n11l.LL.. TO: Mayor and Councilmembers FROM: Peter J. Herlofsky, Jr. City Administrator SUBJECT: Exchange Bank Settlement DATE: June 21, 2010 INTRODUCTION I DISCUSSION Attached is the Settlement Agreement drafted by the attorneys for the Exchange Bank Building. City Attorney Joel Jamnik will be available at the Council meeting to answer any questions. ACTION REOUESTED Approve the attached Settlement Agreement for the Exchange Bank building. Respectfully submitted, Peter J. Herlofsky, Jr. City Administrator 112 SETLEMENT AGREEMENT This Settlement Agreement and Release (the "Agreement") is made and entered into by and between 2004 Real Estate Company ("Plaintiff"), and the Economic Development Authority of the City of Farmington (the "EDA") and the City of Farmington (the "City") (collectively, the "City Defendants"). The Agreement shall be effective when signed by all parties. WHEREAS, the City's Housing and Redevelopment Authority (the "HRA"), predecessor to the City's EDA, and Plaintiff entered into entered into an agreement entitled "Contract for Private Sale of Exchange Bank Building With 2004 Real Estate" (the "Redevelopment Agreement") on November 9, 1998, which was subsequently amended, WHEREAS, under the terms and mutual obligations of the .Redevelopment Agreement, the HRA agreed to sell the property described in Exhibit A of the Redevelopment Agreement (the "Property") to Plaintiff, and later did sell the Property to Plaintiff pursuant to the terms of the Redevelopment Agreement, WHEREAS, under the terms and mutual obligations of the Redevelopment Agreement, Plaintiff executed a special Warranty Deed (the "Reconveyance Deed") by which Plaintiff reconveyed the Property to the HRA, WHEREAS, the City's BRA and Plaintiff entered into entered into an agreement (the "Letter of Credit Agreement") and under the terms and mutual obligations of the Letter of Credit Agreement, Plaintiff provided a letter of credit in the amount of $80,000 to the EDA, WHEREAS, on or about June 3, 2008, the EDA delivered the Reconveyance Deed to Dakota County and caused it to be recorded, WHEREAS, on or about June 9, 2008, the EDA drew upon a Letter of Credit from the North American Banking Company in the amount of $80,000, and deposited such Letter of Credit with North American Banking Company, in an interest-bearing account; 113 WHEREAS, Plaintiff commenced an action against the City Defendants entitled 2004 Real Estate Company v. The Economic Development Authority in and for the City of Farmington and the City of Farmington, case number 19HA-CV-09-5007, on August 7,2009 (the "Lawsuit"); claiming, among other things, that the City Defendants were not entitled to record the Reconveyance Deed and draw upon the Letter of Credit, WHEREAS, the City Defendants believe they were entitled to record the Reconveyance Deed and draw upon the Letter of Credit pursuant based on the parties' agreements and do not admit the allegations contained in the Lawsuit but wish to avoid the uncertainty, expense and inconvenience associated with litigation; WHEREAS, Plaintiff believes that its claims have merit but wishes to avoid the uncertainty, expense and inconvenience associated with litigation; NOW, THEREFORE, in consideration of the covenants, agreements, and releases set forth herein and for other good and valuable consideration, Plaintiff and the City Defendants hereby agree to finally resolve this Lawsuit in accordance with the following terms of agreement: 1. The City Defendants will convey the Property to Plaintiff by quit claim deed. The quit claim deed from the City Defendants to Plaintiff is attached to this Agreement as Exhibit 1. From the date of the recording of the Reconveyance Deed to the present, the City did not drill a well on the Property, make any improvements to the Property, or convey any interest in the Property or otherwise encumber the title to Property. On the dates the City Defendants were in physical possession and control of the Property (June 13-16,2008), they did not permit the encumbrance of the title to the Property. The City Defendants will pay up to $2,000 for the cost of title insurance, to be procured by Plaintiff establishing marketable title in name ofPlaintiftDefendants. 2. The City Defendants will, within ten (10) days of the execution of this Agreement, 2 114 return to Plaintiff the principal amount of the Letter of Credit, together with all interest earned in the North American Banking Co. Account since June 9. 2008 on the Letter of Credit to date; 3. The City Defendants, by and through its insurer the League of Minnesota Cities Insurance Trust, will, within ten (10) days of the execution of this Agreement convey to Plaintiff the sum of $21,500; 4. All payments hereunder shall be made to the Malkerson Gunn Martin LLP IOLTA Account. . 5. In exchange for the consideration herein defined, the City, its officials, and other agents, successors, and assigns shall be completely released, acquitted, and forever discharged from any and all claims, demands, actions, suits, causes of action, including claims for attorneys fees and costs, that Plaintiff had or now has on account of the acts or omissions of the City and the Economic Development Authodty Defendants, its officials, and other agents, successors, and assigns pertaining to the Rredevelopment Ai@'eement, its amendments, the Letter of Credit Agreement, the redevelopment of the Property, and the allegations set forth in Plaintiffs Second Amended Complaint and Petition for Writ of Mandamus in the Lawsuit. 6. In exchange for the consideration herein defined, Plaintiff, and its partners, officials, other agents, successors, and assigns, shall be completely released, acquitted, and forever discharged from any and all claims, demands, actions, suits, causes of action, including claims for attorneys fees and costs, that the City Defendants had or now has on account of the acts or omissions of Plaintiff, its partners, officials, other agents, successors, and assigns pertaining to the Redevelopment Agreement, its amendments, the Letter of Credit Agreement, the redevelopment of the Property, and the allegations 3 115 set forth in Plaintiff's Second Amended Complaint and Petition for Writ of Mandamus in the Lawsuit. 7. The parties have received a notice of claim on behalf of Shyanne Battles. The parties reserve all rights and defenses, including claims for contribution or indemnity either under common law or under the various documents that are described or identified herein, with respect to the Shyanne Battles claim or any future claims by third-parties that are not presently known to the parties. 8. Each party shall bear its own costs and fees. 9. Upon the execution of this Agreement, the parties shall file this stipulation with the Dakota County District Court to dismiss the Lawsuit with prejudice. The stipulation is attached hereto as Exhibit 2. 10. Either party may commence suit against the other for breach of this Agreement. In the event of any suit to enforce the terms of this Agreement, the prevailing party shall be entitled to an award of its attorneys' fees and costs. 11. Plaintiff and the City Defendants agree that this Agreement shall not be deemed or construed to be an admission or evidence of any violation of any statute or law, or of any liability or wrongdoing by any person or entity, including, without limitation, the City, or of the truth of any of the claims or allegations contained in the Lawsuit, and evidence thereof shall not be used directly or indirectly, in any way, whether in the Lawsuit or in any other action, proceeding or lawsuit except in an action to enforce any obligation or right under this Settlement Agreement. 12. This Agreement shall be governed by and interpreted according to the substantive laws of the State of Minnesota without regard to its choice of law or conflict of laws principles. 4 116 13. This Settlement Agreement, along with its exhibits, constitutes the entire Agreement between Plaintiff and the City Defendants pertaining to the settlement of the Lawsuit and supersedes any earlier drafts or communication between Plaintiff and the City Defendants. 14. This Agreement may not be modified or amended except in writing executed by Plaintiff and the City Defendants. 15. This Agreement shall be binding upon, and inure to the benefit of, the successors, heirs, assigns, employees, members and partners, and former members and partners, of Plaintiff and upon all employees, elected officials, departments, commissions and subdivisions of the City Defendants. 16. The parties warrant that the persons signing this Agreement are authorized signatories for the entities represented, and indemnify and hold each other harmless against any assertion of lack of such authority. 17. Neither Plaintiff nor the City Defendants shall be considered to be the drafter of this Agreement or any of its provisions for the purpose of any statute, case law, or rule of interpretation or construction that would or might cause any provision to be construed against the drafter of this Agreement. Dated: , 2010 2004 Real Estate Company By Its Dated: , 2010 Economic Development Authority of the City of Farmington and the City of Farmington By Its 5 117 (RESERVED FOR RECORDING INFORMATION) QUIT CLAIM DEED DEED TAX DUE: $ 1.65 ,2010. Dute: Ii'OR VALUABLE CONSIDERATION, the CITY OF FARMINGTON, a Mhmesota municipal cOl1)oration, Grantor, hereby conveys and quitclaims to 2004 REAL ESTATE COMPANY, a Minnesota corporation, Grantee, real property in Dakotas County, Minnesota, described as follows: SEE EXIIIBIT HA" A TTA CI/ED HERETO AND lVlADE A PART HEREOF. together with all hereditaments and appurtenances belonging thereto. Check box if applicable: [X] The Seller certifies that the Seller does not know of any wells on the described real property. I ] A well disclosure certificate accompanies this document. r ] I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real prope11y have not changed since the last previously filed well disclosure certificate. The consideration for this transfer was less than $500.00. 152427vOl , SRN:06/15/20 I 0 FARMINGTON 12004 REAl. ESTATE COMPANY (Exchange Bldg. at 344 3rd Street. Farmington, MN) 119 CITY OF FARMINGTON, a Minnesota municipal corporation By: Todd Larson, Mayor By: Peter J. Herlofsky, Jr., City Administrator STATE OF MINNESOTA ) ( ss. COUNTY OF DAKOTA ) The foregoing instl'lunent was acknowledged before me this _ day of , 2010, by Todd Larson and by Peter 1. Herlofsky, Jr., respectively the Mayor and City Administrator of the City of Farmington, a Minnesota mWlicipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public Check here if parI 01' all of tile land is Registered (Ton'ens) 0 Tax Statements for the real property descl'ibcd in this instl'lIment should be sent 10 (Include name and address of Grantee): THIS INSTRUMENT DRAFTED BY: CAMPBELL KNUTSON Professional Association 317 Eagandale Office Center 1380 Corporate Center ClU'Ve Eagan, Minnesota 55121 Telephone: (651) 452-5000 SRN 2004 Real Estate Company clo Hosmer A. Brown III 380150th Street West Minneapolis, MN 55410-2047 I 52427vOl SRN:06l151201O 2 FARMINGTON /2004 REAL ESTATE COMI'ANV (Exchange Bldg, at 344 3rd Street, Farmington, 1'v1N) 120 EXHIBIT A TO QUIT CLAIM DEED The following described lot, piece 01' parcel of land situate, lying and being in the County of Dakota and State of Minnesota to-wit: That palt of Lots Fotll' (4) and Five (5) in Block Twenty two (22) of the Town of Farmington more particularly described as: Commencing at the Southeast comer of Lot Five (5) in Block Twenty two (22); thence West along the south line of said Block, 100 feet to a point; thcnce running North parallel with the East line of said Block, 70 feet to a point; thence running East and parallel with the south line of said Block, 20 feet; thence South and parallel with the East line of said B lock to a point 44.4 feet nOl1h of the South line of Lot Four (4); thence East 80 feet to the East line of said Block Twenty rwo (22) to a point 44 feet north of the Southeast comer of Lot Five (5); thence south along the East line of said Block, 44 feet to point of beginning according to the plat thereof now on file and ofl'ecol'd in the office of the County Recordel' within and fOl'said County and State. Hereinafter known as the "benefited property", Together with a fire escape egress easement ovel' the South 10 feet of the following described pl'Operty to-wit; That part of Lots rour (4) and Five (5) in Block Twenty two (22) of the Town of Farmington more particularly described as: Commencing at the Southeast comer of Lot Five (5) in Block Twenty two (22); thence West along the south line of said Block, 100 feet to a point; thence running North parallel with the East line of said Block, 70 feet to a point; thence I'Unning East and parallel with the south line of said Block, 20 feet; thence South and pal'allel with the East line of said Block, one foot to a point; thence East and parallel to the south line of said Block, 80 feet to the East line of said Block Twenty two (22), thence south along the East line of said Block, 69 feet to point of beginning, all being in the Town of Fal1ning1on EXCEPTING THEREFROM: That pmt of Lots Four (4) and Five (5) in Block Twenty two (22) of the Town of Farmington more particulal'ly described as: Commencing at the Southeast comer of Lot Five (5) in Block Twenty two (22); thence West along the south line of said Block, 100 feet to u point; thence running North pamllel with the East line of said Block, 70 f'eet to II point; thence running East and parallel with the south line of said Block, 20 feet; thence South and pnrallel with the East line of said Block to n point 44.4 feet north ofthe South line of Lot Four (4); thence East 80 feet to the Eust line of said Block Twenty two (22) to a point 44 feet north of the Southeast comer of Lot Five (5); thence south along the East line of said Block, 44 feet to point of beginning. Hereinafter known as the "benefited property". Said fire escape easement being more pal1icularly described as creating egress from the second stol')' NOItheast exit of the benefited property onto the roofofthe above described burdened property and from the roof of the above described burdened property to the ground level, via the West wall, of the building constructed on the blll'dened property. All costs and expenses of design installation, maintaining, and repail' of said fire escape system to be the sole cost, expense and obligation of'the benefited property with the design, location, manner of installation, and construction of said fire escape system to be approved by the burdened property prior to construction thereof which approval shall not be unreasonably withheld. I 52427vO ( SRN:06/J5/20JO 3 121 FARMINGTON /2004 REAL ESTATE COMPANY (Exchange Bldg. at 344 3rd Street. Falmington, MN) STATE OF MINNESOTA COUNTY OF DAKOTA DISTRICT COURT FIRST JUDICIAL DISTRICT Case Type: Other Civil 2004 Real Estate Company, a Minnesota Corporation, Court File No. 19HA-CV-09-5007 Plaintjjf, v. The Economic Development Authority in and for the City of Farmington, a political subdivision of the State of Minnesota; and the City of Farmington a municipal corporation and political subdivision of the State of Minnesota, STIPULATION FOR J)ISMISSAL WITH PREJUDICE AND PROPOSED ORDER Defendants. Plaintiff 2004 Real Estate Company and Defendants The Economic Development Authority in and for the City of Farmington and the City of Farmington hereby stipulate to the entry of judgment dismissing all claims and counterclaims with prejudice, with each party bearing its own costs and attorney fees. Dated: June _, 2010 GREENE ESPELJ P.L.L.P. By Larry D. Espe~ Reg. No. 27595 RobinM. WolpertJ Reg. No. 0310219 200 South Sixth Street, Suite 1200 Minneapolis, MN 55402 (612) 373-0830 Attorneys for Defendants Economic Development Authority in and for the City of Farmington and the City of Farmington 123 Dated: June _,2010 MALKERSON GUNN MARTIN LLP By Howard A Roston (#260460) Timothy J. Keane (#0165323) 200 S. Sixth Street, Suite 1900 Minneapolis, MN 55402 (612) 344-1111 Attorneys for Plaintiff 2004 Real Estate Company, Inc. ACKNOWLEDGMENT The undersigned hereby acknowledges that costs, disbursements and reasonable attorney and witness fees may be awarded pursuant to Minn. Stat. ~ 549.211, subd. 2, to the party against whom the allegations in this pleading are asserted. Robin M. Wolpert ACKNOWLEDGMENT The undersigned hereby acknowledges that costs, disbursements and reasonable attorney and witness fees may be awarded pursuant to Minn. Stat. ~ 549.211, subd. 2, to the party against whom the allegations in this pleading are asserted. Howard Roston 2 124 ORDER Based upon the foregoing Stipulation, IT IS HEREBY ORDERED that all claims and counterclaims between Plaintiff 2004 Real Estate Company and Defendants The Economic Development Authority in and for the City of Farmington, and the City of Farmington are dismissed with prejudice, without payment of costs or attorney fees by either party. There is no just reason for delay in entering judgment as stated in this Order. LET THE runGMENT BE ENTERED ACCORDINGLY AND WITHOUT DELAY. Dated: ,2010 By: Judge of Dakota County District Court 3 125