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Home My WebLink About07.19.10 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 promisingfuture. FARMINGTON CITY COUNCIL Todd Larson, Mayor Terry Donnelly Julie May Christy Fogarty Steve Wilson AGENDA REGULAR CITY COUNCIL MEETING July 19,2010 7:00 P.M. CITY COUNCIL CHAMBERS 1. CALL TO ORDER 7:00 P.M. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVEAGENDA 5. ANNOUNCEMENTS/COMMENDATIONS a) Preservation of the Akin Oaks - Farmington Lutheran Church and Bible Baptist Church - Planning 6. CITIZEN COMMENTS / RESPONSES TO COMMENTS (I'his 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 7. CONSENT AGENDA a) Approve Council Minutes (7/6/10 Regular) (7/12/10 Workshop) b) June 2010 Financial Report - Finance c) 2nd Quarter Building Permit Report - Building Inspections d) Adopt Resolution - Accept Donation Pollution Prevention Day - Municipal Services e) Adopt Resolution - Accept Donations 2010 Spring Skating Competition - Parks and Recreation f) Approve Temporary Liquor License - Administration g) Adopt Resolution - Approve Gambling Event Permit - Administration h) Approve Liquor License Addendum Blondie's Tavern - Administration i) Approve Bills Action Taken Recognized Farmington Lutheran & Bible Baptist Church Information Received Approved Information Received Information Received R40-10 R41-10 Approved R42-10 Approved Approved REGULAR AGENDA (The Council takes a separate action on each item on the Regular Agenda. If you 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) Request to Vacate Portions of Existing Drainage and Utility Easements Meadow Creek 4th Addition - Planning 9. AWARDOFCONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) Dew Days - Administration 13. COUNCIL ROUNDTABLE a) Set Budget Workshop - Administration (verbal) b) Set Special EDA Meeting - Administration (verbal) 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . 2 Preservation of the Akin Oaks - Farmington Lutheran Church and Bible Baptist Church Preservation of oaks memo. . 4 oaks1 . . . . . . . . . . . 6 Response to Mr. David Pritzlaff Memo . . . . . . . , . . . 7 Approve Council Minutes (7/6/10 Regular) (7/12/10 Workshop) Council Minutes 7/6/10 . . . . 8 Workshop Minutes 7/12/10 . .14 June 2010 Financial Report June Financial Memo . . . . . 23 June Financial Report. . . . . 27 Second Quarter 2010 New Construction Report and Population Estimate 2nd qtr report1. . . . . . . . . . . . . . , . . . . . . . 31 Adopt Resolution - Accept Donation Pollution Prevention Day Donation Memo. . . . . . . . . . . . . . . . . . . . 40 Donation Resolution. . . . . . . . . . . . . . . . . . 41 Adopt Resolution Accepting Donations to the 2010 Spring Skating Competition memo . . . . . . . . . . . . . 42 donation resolution . . . . . . 43 Approve Temporary Liquor License Tempoary Liquor License - Farmington Liquors. .44 Temp Liquor Application. . . . . . . . . . . . . .45 Adopt Resolution - Gambling Event Permit Gambling Event Permit - Farmington Sno- Tigers. . 46 Resolution Gambling Event Sno-Tigers. . . . . .47 Approve Liquor License Addendum - Blondie's Tavern Blondie's Tavern Liquor License Addendum . 48 Approve Bills List of Bills. . . . . . . . . . . . . . . . . . . 49 Request to Vacate Portions of Existing Drainage and Utility Easements Meadow Creek 4th Addition Vacate easements Meadow Creek 4th . . 75 Vacation Resolution Meadow Creek 4th . 77 meadow 4th1 . . . 78 Dew Days Dew Days Memo . 80 1 50- City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800. Fax 651.280.6899 www:ci.rdrminl:.>ttm.n11l.LL~ TO: Mayor, Council Members, City Administrator FROM: Lee Smick, City Planner AICP, CNU SUBJECT: Preservation of the Akin Oaks - Farmington Lutheran Church and Bible Baptist Church DATE: July 19, 2010 INTRODUCTION The City would like to recognize two property owners along Akin Road for the preservation of one of Minnesota's rarest plant and wildlife habitats, known as the Oak savanna. Representatives from Farmington Lutheran Church and Bible Baptist Church have been invited to attend the City Council meeting to receive Certificates of Appreciation for their efforts in preserving these rare ecosystems, now formally known as the Akin Oaks. DISCUSSION The City recently approved its Natural Resources Inventory and Management Plan in February 2010. During the planning process, City staff identified a significant community resource along Akin Road from Middle Creek to 190tli Street which includes remnants of an ecosystem known as the Oak Savanna (see Exhibit A). The stewardship efforts of local residents and landowners have preserved this resource for the community and the City would like to acknowledge their efforts. In Farmington, Oak Savanna remnants remain in a number of areas along the ridge that parallels Akin Road. To explain the Oak savanna, it is one of Minnesota's rarest plant and wildlife habitats. While abundant at settlement in Dakota County and southeastern Minnesota, much of this habitat has been converted to agricultural and urban uses. Less than 1 percent of the original Oak savanna habitat in Minnesota remains today. The Oak savanna typically consists of large Bur or White Oak trees scattered in a grassy landscape. The Oak savanna is a beautiful, park-like landscape that provides habitat for many songbirds, hawks, woodpeckers, and other animals and plants. The Minnesota DNR has identified the Oak Savanna as one of the five Key Habitats for Species in Greatest Conservation Need in the state. 4 Through the stewardship efforts of landowners such as Farmington Lutheran Church and Bible Baptist Church, the existing oak remnants in the City can be enhanced and connected to enjoy this resource for future generations. ACTION REOUESTED Acknowledge the efforts of Farmington Lutheran Church and Bible Baptist Church in preserving the existing Akin Oaks. Respectfully submitted, Lee Smick, City Planner AICP, CNU cc: Farmington Lutheran Church Bible Baptist Church 5 Oak Savanna Ex. A Legend r..:J Oak Savanna Area D Parcels - Akin Road C:J Municipal Boundary ? 6 1,~OO 2,~OO 3,~OO Feet N A Map daled Seplember 28, 2009. Aerial phtography daled April, 2008. o a... City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800. Fax 651.280.6899 \,,~'W.cl.tlU'm.in2;ton,mu.us TO: Mayor and Councilmembers FROM: Peter J. Herlofsky, Jr. City Administrator SUBJECT: Responses to Dave Pritzlaff DATE: July 19,2010 1. Solid Waste - $48,522 used for bond payments split between the 4 enterprise funds. What are the enterprise funds? Resoonse: Sewer, Solid Waste, Storm Water, and Water 2. Determine if the check from Bonestroo for $12,500 was received 2-3 years ago. Resoonse: This has not been received. We will receive it when the work is complete. 3. Why was the weed ordinance changed. Resoonse: All the information was provided at the last meeting. 4. Community Survey: Why was ''Not Support" not included in question 14. Resoonse: This was a decision by the consultant. cc: David Pritzlaff 7 70:.. COUNCIL MINUTES REGULAR July 6, 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: ~embers}\bsent: Also Present: Audience: Larson, Donnelly, Fogarty, Wilson ~ay Henry Schaffer, City Attorney; Peter Herlofsky, City Administrator; Teresa Walters, Finance Director; Brian Lindquist, Police Chief; Randy Distad, Parks and Recreation Director; Kevin Schorzman, City Engineer; Cynthia ~uller, Executive Assistant Beve Preece, Annette Kuyper, Jerry Ristow, David Pritzlaff 4. APPROVE AGENDA MOTION by Fogarty, second by Wilson to approve the Agenda. APIF, MOTION C.ARRIED. 5. ANNOUNCEMENTS a) Dew Days Recap - Police Chief Lindquist A slide show was viewed of Dew Days events. Police Chief Lindquist recognized those who coordinated Dew Days events. There was $8,000 profit for Dew Days. 6. CITIZEN COMMENTS ~ayor Larson apologized to the residents and Council for Citizen Comments at the last meeting. Things got out of control and he hoped to avoid that in the future. He wanted to make Citizen Comments a positive item for residents to talk about upcoming events and things happening in the City, ask questions or inform Council of any concerns. Unfortunately, because of a couple of instances, things need to change. Citizen Comments is not for yelling at City Council, not for demanding things from the City Council, or taking Councilmembers to task personally. When residents come to the podium, he would like them to think about how they will represent themselves and the City. He asked that comments be directed to Council and be kept to five minutes or less. If a resident has more to say, they are welcome to come to the next meeting. A response will not be given at the meeting, but a letter will be mailed prior to the next meeting. If these rules are not followed, residents will be asked to be seated. If things get out of control, they will be escorted from the meeting. 8 Council Minutes (Regular) July 6, 2010 Page 2 Ms. Beve Preece, 300 Spruce Street, thanked the City for their cooperation with the use of the lobby at City Hall for the DV AC Art Show. She thanked Police Chief Lindquist for his leadership, which made their job a lot easier. The winners from the Art Show are displayed in the lobby at City Hall. The DV AC is collecting art work to replace the damaged art work in the Depot Way Arts Park. Dates will be set to do some work in the park. A meeting will be set with students to decide what to do with the walls for artwork. The Flavors of Farmington has been rescheduled for July 28, at Rambling River Park. The DV AC will also have an art display at this event. Trinity Terrace will have an open house on July 9, with a ribbon cutting for their new Assisted Living services. The care center had a perfect record in the State survey this year. Ms. Annette Kuyper, Warrior To Citizen, stated they have several events in July. On July 17, there will be a book signing at the library; also July 17, is the steak fry fundraiser at the VFW; on July 18, they are joining other Yellow Ribbon networks to host a welcome home picnic for units from Rosemount and Inver Grove Heights. There will be 650 at the Rosemount armory and 725 at the Inver Grove Heights armory. She asked Council and City leaders to mark September 22, as Governor Pawlenty will be coming to Farmington to award 8 cities and two corporations Yellow Ribbon status. It was a special request from the Governor to hold this in Farmington to honor us for being the frrst Yellow Ribbon city in the state. Mr. Jerry Ristow responded to Mayor Larson's comments. He stated he is a responsible citizen and came to the last meeting to ask legitimate fmancial questions. He has 12 years experience with the City. He is concerned with the direction the City is going. There have been many levies on property taxes. He had met with City Administrator Herlofsky to discuss his concerns~ but Council is elected to work for the residents and to answer to them. When he was Mayor, he could not stop anyone from coming to Council to ask questions. Joel Jamnik was the City Attorney and at that time he had said Citizen Comments is for anyone. Mr. Ristow stated he wanted to put a positive spin on the situation, but he had legitimate concerns about money being spent and the only ones he can ask is the Council. He still has concerns, and did not hear from any Councilmembers~ except Mayor Larson regarding the street lights. He received a letter with answers to the questions, but that was from City Administrator Herlofsky. Unless the policy has changed, the Mayor runs the meetings and the Council is there as elected people. The Mayor cannot tell the rest of Council what to do unless you vote to set a different policy. Mr. Ristow stated he asked legitimate questions and received nothing back from Council. He asked if Council doesn't see where the money is going. He can understand a few mistakes, but for example the removal ofthe trees on the Walnut Street project, staff says it was in the contract. There has been levy after levy. You have to take this seriously; it is business. Member Wilson confrrmed the response in the packet was sent to Mr. Ristow. Staffalso confIrmed the tree removal and other items are in the contract. Mr. David Pritzlaft: 20255 Akin Road, stated when he was on the Council he took his fair share of comments, but that is what he was elected for. He represented the people that 9 Council Minutes (Regular) July 6, 2010 Page 3 voted for him and you take the good with the bad. The City is taking our tax money, so residents have a right to come to any meeting and give opinions. He would like to think they are considered. He did address the Council with his comments at the previous meeting and Mayor Larson had said staff would respond, even though he was asking for each Councilmember to respond with why they voted for a particular ordinance. His frustration is trying to get the answers and when he does not receive the answers, it becomes more frustrating. Just give the information out freely and more than one line responses. The 5-minute rule is fme, as long as everyone adheres to it. a) Response to Mr. David Pritzlaff Mr. Pritzlaffreceived responses to his questions. Regarding solid waste and $48,552 being used for bond payments split between the four enterprise funds, he asked what are the four enterprise funds? Mr. Pritzlaff stated regarding the remaining $63,996, ifwe are not in the solid waste business we would not have to pay those expenses. Regarding the $12,500 payment from Bonestroo for the mill and overlay project in the Sunnyside area, it would apply towards the seal coat assessment. Mr. Pritzlaffnoted in the March 10,2010, Council minutes it was stated that Bonestroo is still committed to paying this amount. Mr. Pritzlaffrecalled that check was received by the City when he was on the Council 2-3 years ago. Either we were told something and it was not here, or Bonestroo is now paying the money. Staffwill research this. Regarding the weed ordinance, he received information from staff, but wanted to know why staff presented the ordinance change. Staffwill provide further information. As far as the community survey, he did not receive a response to question #14. Councilmember Fogarty stated she has been discussing it with the City Administrator and no final decision has been made. Also at the last Council Meeting, Mr. Pritzlaff requested Council ban cell phones from the Council Room during meetings. The buzzing noise is disturbing. Councilmember Wilson asked Mr. Pritzlaffifhe read the e-mail sent to him this morning regarding the weed ordinance. Mr. Pritzlaff stated he received it, but there is no discussion except that it was on the Consent Agenda. The Planning Commission minutes were also included in the information sent to Mr. Pritzlaff. Councilmember Wilson felt the information sent should answer all of Mr. Pritzlaff's questions. Mr. Pritzlaffhad requested Council packets from Mayor Larson and Councilmember Fogarty for the April 19, 2010, Council meeting. Councilmember Fogarty brought in packets for May, but no longer has the April packets. Mayor Larson provided his April packet to staff. 10 Council Minutes (Regular) July 6, 2010 Page 4 7. CONSENT AGENDA MOTION by Wilson, second by Fogarty to approve the Consent Agenda as follows: a) Approved Council Minutes (6/21/10 Regular) b) Acknowledged Resignation Administration - Human Resources c) Adopted RESOLUTION R37-10 Approving Assessment Agreement 3350 209th Street W - Engineering d) Approved Wetland Replacement Plan Pilot Knob Trail Extension - Engineering e) Adopted RESOLUTION R38-10 Accepting Dew Run Donation - Parks and Recreation f) Received Information Response to Councilmember May - Administration g) Approved Bills APIF, MOTION CARRIED. 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS a) Approve Plans and Authorize Bids Pilot Knob Trail Extension - Engineering The bid date is July 27,2010, with an anticipated award at the August 2,2010, Council meeting. The project will start soon after this and be completed the fIrst week in October 2010. The estimate for construction is $288,000, which includes 10% for contingency. The cost will be split 55/45% with the County; the City will pay 45%. The City's portion will be $10,000 from the park improvement fund and the remainder from the road and bridge fund. Staff will provide an updated analysis based on the actual bids received. The County will take over the project management, including the surveying, inspection, and management ofthe contract after the project is let. The City will complete the design. The total cost for the City is estimated at $170,000. Councilmember Wilson stated the park improvement fund has not received funding and asked how this will affect park projects. Parks and Recreation Director Distad stated the park improvement fund has paid for trail construction projects in the past. We are not receiving money from developments, but the park improvement fund will be used for the area going through the wetland. Councilmember Wilson confIrmed the road and bridge fund is funded through tax money or mostly state money. City Engineer Schorzman replied it is a combination of both. There is MSA money, but also assessments used to pay for bonding. Councilmember Wilson stated based on his calculation we are $13,000 short in reaching $170,000. City Engineer Schorzman stated the numbers include 10% for contingency. The balance is the design cost the City will spend which are similar to the cost for the County. Councilmember Wilson asked who worked on the design ofthe project. Staff replied Bonestroo, City staff, and the Soil and Water Office. Councilmember Wilson asked ifwe could have worked with others such as Dakota County Soil and Water rather than Bonestroo or gone out for bids 11 Council Minutes (Regular) July 6,2010 Page 5 for the design work as opposed to assigning the work to Bonestroo. Staff stated we could have. Councilmember Wilson was concerned that was not presented to Council. Councilmember Fogarty stated the trail will be constructed on the west side of Pilot Knob Road. She asked if it will be bituminous all the way or will there be a boardwalk through the wetlands. City Engineer Schorzman explained it will be bituminous. The trail will go down into the bottoms and weave through the wetlands. It will be close to the road on one side and wetlands on the other side. MOTION by Fogarty, second by Wilson to adopt RESOLUTION R39-10, approving the plans and specifications and authorizing the advertisement for bids for the Pilot Knob Trail Extension Project. APIF, MOTION CARRIED. b) Approve Rambling River Center HV AC Project Change Order - Parks and Recreation Staff proposed to add a change order for cleaning of ductwork to the HV AC project for the Rambling River Center. The cost would be $2,100. The remaining balance for the HVAC project is $5,715.23. MOTION by Wilson, second by Fogarty to approve the Rambling River Center's HV AC Project change order. APIF, MOTION CARRIED. 11. UNFINISHED BUSINESS 12. NEW BUSINESS 13. COUNCIL ROUNDTABLE a) 2010 Accomplishments - Administration Council received a list of major accomplishments so far for 2010. b) Set Budget Workshop July 12 - Administration Council set a budget workshop for July 12, 2010, at 6:00 p.m. August 9, 2010, is scheduled for a parks tour. Rather than a tour, the report for the community survey should be ready. Councilmember Fogarty was concerned that August 9, could be too late for our timeframe. City Administrator Herlofsky suggested having a joint meeting with Council, the Parks and Recreation Commission, and the Planning Commission. Councilmemher Donnelly: He has been absent from a few meetings due to health issues which have been resolved. Councilmemher Wilson: Thanked Communications Specialist, Danielle Cahlander, for the redesign of the City newsletter. 12 Council Minutes (Regular) July 6,2010 Page 6 Councilmember Fogarty: Regarding the Mayor's comments on Citizen comments, she has received numerous e-mails and comments from residents about Citizen comments not being what they were designed to be. Mr. Pritzlaffwas granted 21 minutes tonight and that is the type of thing she is hearing about. Some residents are being allotted more time than others and it is frustrating for residents to watch. She wanted to remind everyone these are not public meetings; they are meetings held in public. That is so there is absolute transparency in government. She answers dozens of questions from residents outside of Council Chambers. She understood people have questions and wants them involved. However, berating the Council from the podium is not the best way to get answers from government. She is being told again and again, it needs to be reigned in and controlled. She will hold the Mayor accountable to do so. City Administrator Herlo/sky: Department provided mutual aid. There was a fIre in Lakeville where our Fire Parks and Recreation Director Distad: The August 9, workshop will start at 6:00 p.m. Mayor Larson: Mayor Larson asked Attorney Schaffer if responses to citizen comments from a previous meeting should be included in the allotted amount of time. Attorney Schaffer stated it should be fIve minutes, and it should not be something you need to address. It is a moment for citizens to speak their mind. It is a meeting that is public. If there will be a time limit, it should be adhered to. Mayor Larson noted the Fairgrounds had a band last weekend and asked if any noise complaints were received. Staff did not receive any complaints. Mayor Larson urged residents to shop locally. A new business, Blondie's Tavern should open the end of July. 14. ADJOURN MOTION by Fogarty, second by Wilson to adjourn at 8:19 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 13 Council Workshop Minutes July 12,2010 Mayor Larson called the workshop to order at 6:00 p.m. Audience Larson, Donnelly, Fogarty, May Wilson Peter Herlofsky, City Administrator; Teresa Walters, Finance Director; Brian Lindquist, Police Chief; Randy Distad, Parks and Recreation Director; Kevin Schorzman, City Engineer; Todd Reiten, Municipal Services Director; Lisa Shadick, Administrative Services Director; Brenda Wendlandt, Human Resources Director; Cynthia Muller, Executive Assistant Jerry Ristow Present: Absent: Also Present: MOTION by Donnelly, second by May to approve the agenda. APIF, MOTION CARRIED. City Administrator Herlofsky stated at the last meeting Council gave staff some direction on what they wanted for the 2011 budget. Staffhas included information on the debt service fund along with information on the general fund. Public safety makes up 60% of the budget and 75% is salaries, so taking 2% - 5% out was very difficult. As far as the debt service fund, because of Vermillion River Crossing we need to do some catching up. Councilmember May felt staff did not do what Council asked, because Council wanted to see by department a decrease of2% - 5% and an increase of2% - 5%. Finance Director Walters understood the direction to be an overall budget decrease. Councilmember May stated Council wanted each department to do that individually. When Council looks at an overall number, they want to see how individual departments are affected by the different scenarios. City Administrator Herlofsky stated staff provided the information under the conditions ofthe debt service. He noted staffwas also told certain departments were not touchable so staff tried to balance that out because that only left 40% of the budget to work with. The actual numbers, other than personnel, are exactly the same as last year. The personnel budget changes are related to PERA and other personnel costs. Councilmember May stated staff needs to do what Council asks them to do. If Council has to make a decision, she understands the overall number, but she is trying to get a grasp of how the changes affect each department first and then we can piece it together. She will listen to what staff has put together, but felt staffhas not done that exercise. She also asked the information be provided sooner before a workshop. City Administrator Herlofsky stated we wanted to get the meeting done early in July, so we can get direction and have a couple more meetings before September. We need to handle the debt service. We can discuss different percentages, but it will affect personnel. Mayor Larson agreed we need to talk about the debt service and at the last meeting Council wanted to see how an increase or decrease would affect the departments. Mayor Larson asked about the health insurance increase of 10.22%. He recalled last year they discussed those with single coverage receive a check to make up the difference. Human Resources Director Wendlandt clarified that is not how it works. The increase is to the 14 Council Workshop Minutes July 12, 2010 Page 2 premiums from the health insurance carrier. What the Mayor was referring to was the City has a cafeteria plan and everyone receives a set dollar amount to purchase benefits. Last year it was not increased for those with single coverage. A few years ago it was changed so that employees could receive any left over amount in cash or roll it into their 457 account. Some employees waive coverage because they are covered elsewhere. For those who choose more than single coverage, the employer contribution does not cover the entire amount. Mayor Larson asked how much someone who waives insurance receives. Human Resources Director Wendlandt replied if they take no other benefits they receive approximately $300/month in cash or rolled over to their 457 account. Mayor Larson asked for a report on how much the City is paying out for those benefits for the next meeting. City Administrator Herlofsky stated it is an attempt to make sure each person is paid equally and not based on whether they are married, single, or have children. Mayor Larson stated with hard times, we have to look at everything. Staff asked for clarification that the report should show how much we pay for everyone, how much for single coverage, and employee plus children. Mayor Larson wanted to know how much we are giving employees in taxable income or what they are rolling over. Councilmember Fogarty stated in other places employees receive the amount for single coverage and anything above that becomes the responsibility of the employee. If you opt to not have coverage, then you do not receive a benefIt. There is a way to make it equitable and be more frugal for the City. City Administrator Herlofsky agreed that way is more common. Councilmember Donnelly asked about moving a building maintenance staff person from the arena and the pool to City Hall which resulted in increased cost to the general fund. Finance Director Walters stated the arena and the pool are special revenue funds, so they are not part of the levy. Staff was shifted to the general fund. Councilmember Donnelly asked about the 7.1% increase in Police Patrol overtime. Police Chief Lindquist stated there was a reduction requested last year, which was below the requested number. This is to indicate it is going back to the original budget number from 2009. Councilmember May stated with the addition of an officer, she hoped to see a reduction in that number. Police Chief Lindquist stated there is less of a need to backfill the shifts with overtime, but there is still the courts, safe and sober, training, etc. Because we have extra people during the summer, that is a reduction. City Administrator Herlofsky explained the safe and sober program overtime is reimbursed so it is not an additional cost. Councilmember Donnelly would like to see a dollar amount next to the items listed under the general fund so they can see what dollar amount the percent equates to. He noted the general fund did not look that bad, but the debt service fund was a total surprise. Vermillion River Crossing is the biggest problem. Mayor Larson asked staff to explain Hill Dee where in 2007 we should have levied $187,300 and we received $78,914 in special assessments. The City had issued bonds to cover the Vermillion River Crossing Development and the Hill Dee project. Finance Director Walters explained we did not receive as much of the assessments as we thought we would receive. Also we should have levied a higher dollar amount and we didn't because there was a fund balance. The fund balance was only there because we had prepayments in assessments. Because of the prepayments we were able to utilize the fund balance in 2008 and reduce the amount we levied in order to pay the debt service payment. In 2008 development did not occur in Vermillion River Crossing. The prepayments caught up with us and we continued to levy close to the same amount and kept utilizing fund balances until we went negative in 2009. Also, we budgeted a 15 Council Workshop Minutes July 12, 2010 Page 3 slightly higher dollar amount, but not as much as we should have levied in 2010, and we will go even further negative because at the same time we were not receiving the amount of special assessments we had budgeted to receive. This happened because we anticipated development in Vermillion River Crossing and we did not have development. For the Hill Dee project we anticipated receiving $78,000 in special assessments, but we did not assess that much. Councilmember Fogarty asked how can we expect a dollar amount and not receive it. City Administrator Herlofsky explained people do not pay it; it goes on the tax rolls to be paid when the property is purchased. Councilmember Fogarty stated when we do special assessments we are assuming a percentage will write us a check. Finance Director Walters stated that is not the way the fmancial advisors set it up. They assume that everyone will pay over time and then they anticipate the amount of interest that will be paid over that time period. The people who pay ahead oftime, do not pay interest so then you end up with a smaller amount. In this case, more people wrote us a check than was anticipated. City Administrator Herlofsky noted in her short time here Finance Director Walters has brought concerns to his attention and made some real efforts to get things resolved. Previous employees have tried their best to bring to Council each year as small an increase in the levy as possible. Vermillion River Crossings was a time when everyone wanted them to be very successful. There was an attempt to make things work based on a difficult situation. Mayor Larson stated with Hill Dee we are playing banker and eventually we will get caught up. Finance Director Walters stated with Hill Dee you will never be caught up; with Vermillion River Crossings you will if you have development and Council does not waive the special assessments. Mayor Larson stated there is nothing we can do except to levy for it. Finance Director Walters stated when staff put this together we were faced with a huge increase ifwe were to cover everything. We had to develop a plan to be able to do it in a reasonable way that would not affect the residents as much. The result is shifting money between funds. Mayor Larson asked about the auditors at year end. Finance Director Walters explained they look at cash balances at the end of the year and fund balances at the end of the year. At the end of the year we will have a positive cash balance in the debt service fund and a positive fund balance. During the year we will be struggling to pay because our principal payments are all due in February and the City does not receive tax money until June or July. In 2011, we anticipate paying over $3 million in principal payments and approximately $1.4 million in interest. Normally the first interest payment comes in August so you would levy in the year prior to that so you have the cash flow for the February payment. As far as the arena and Walnut Street, our fIrst interest payment is due in August and the fIrst principal payment is due in February 2012. If you do not levy for it in 2011, you will not have the money in February 2012. City Administrator Herlofsky stated with Vermillion River Crossing, payments got slightly behind and we ended up with a big increase in the bond payment. The amount needed to cover the deficit and the increase in bond payment is $723,091. City Administrator Herlofsky noted in 2005 they were talking about construction starting the following spring and assessments would be paid through the City through the increase in value and the abatement. There was a $1 million grant for the Spruce Street bridge. The past minutes state without the Spruce Street bridge the project could have gone without assistance from the City, but the bridge added another $1 million plus the $1 million grant. The economy turned and things did not turn out as expected. 16 Council Workshop Minutes July 12, 2010 Page 4 Department heads made a serious attempt to adjust the general fund budget resulting in a .32% increase based on adjustments for PERA, health insurance, and contracts. Finance Director Walters stated if we did not shift money we would be at an 11.79% increase in the levy. Staff looked at everything and something needed to be done. It would be best to pay it over time, rather than one lump sum. Payments increase each year. She looked for a fund that had money which is the capital acquisition fund. We have a list of equipment to replace, but we needed a one time flX. That flX is to transfer $300,000 from the capital acquisition fund to the 2006A bond fund (Vermillion River Crossing). The transfer of $300,000 leaves a fund balance of $31,000. That will carry forward to the next year. The following year we would borrow $162,600 from the capital acquisition fund and pay it back in 2017. This amount was chosen because the equipment certificate debt service fund levy amount is $162,600. That fund is ending in 2011. Instead of cutting it out of the budget, she is suggesting we utilize the money to pay the debt service from 2012 to 2016. We will build up enough ofa fund balance to pay it back in 2017. Every year the levy would increase by $10,000. Ifthere is development in Vermillion River Crossing, we can adjust this. Councilmember May asked why bother with the equipment certificate levy because that will expire. Why continue it just to shift it over? Finance Director Walters stated it is to utilize the levy that is going away so we are not increasing. Councilmember May stated we are increasing because it would go away. Staff explained we are calling it an equipment certificate levy to show where the money came from. The $162,600 will end in 2020. Other shifts are from the 2005C debt service fund, and the 2003A debt service fund. At some point the levy will have to be increased. Regarding the 201 OC Walnut Street bond, staff changed the entire payment schedule for this project. The schedule from the fmancial advisor sets it up so we do not have negative cash balances. The revised schedule will have negative cash balances throughout the year, but will give a positive cash balance at the end of the year. The fmancial statements will not show we cannot pay our debt. This is based on what the County says we should be receiving. If people decide to prepay assessments, then we have to review it. Councilmember Fogarty asked if the interest we are receiving is higher than the interest we are paying. Finance Director Walters stated it is similar. Councilmember Fogarty asked then why not use the prepayments to buy down the principal. Finance Director Walters stated we could have, but we didn't. We put it into the fund balance and the next year we reduced the levy. Councilmember Donnelly stated the prepayments did not go towards the bond; they were used to make the levy look better. Finance Director Walters stated she had done the same thing with the ice arena equipment bonds. We will have negative cash balances during the year and positive cash balances and fund balances at the end of the year. After all this we end up with a 3.9% increase in the overall levy. Councilmember Donnelly asked if the Walnut Street payments were increased or decreased with the new schedule. Finance Director Walters stated for Walnut Street the original payment was to be $130,000. It has been reduced to $49,196 for the fIrst year. In 2011 there is no levy for the principal and the levy does not start until 2012. In 2012 we will have an increase to the levy because we are going from $75,000 to $135,000 in 2012. After that it is smaller increases and remains consistent from 2014 to 2026. Finance Director Walters suggested not reducing the debt service any further. City Administrator Herlofsky stated we have gone from 11.79% to 3.9%. Councilmember Donnelly stated the $300,000 transfer from the capital acquisition fund we never pay back. Staff agreed. Councilmember Donnelly stated so we have levied $300,000 for equipment we will never buy. The $162,600 which is a loan, we will pay back. Councilmember 17 Council Workshop Minutes July 12,2010 Page 5 Fogarty stated this puts us at a 4% increase for 2011, similar for 2012, and keeps it stable until 2018. Hopefully development will occur by then. Finance Director Walters stated this is provided we have no new debt. Any new debt will increase the levy. Salaries make up 78% of the general levy or 48% of total expenditures. We have a transfer of $145,000 to the Senior Center each year. Ofthis $125,000 is for operations and $20,000 is to repay a loan. The personnel cost for the senior center is $82,205. Revenues are $37,200. This is part of one of the options for Council to consider. Options for the general levy include: Option 1 (staff recommendation) is a 3.5% overall increase as presented which is a .32% increase to the general levy and a 14.86% increase to the debt service levy. All services remain the same and the budget stays the same as 2010. There would be no capital purchases except for the two police cars that will be paid for from the capital acquisition fund. General Fund Reduction Options: Option I is a 2.9% overall increase which is to reduce the general levy by 1 %, amounting to $83~000, and a 14.86% increase to the debt service levy. Options for cutting $83,000 include: - Closing the pool. The $75,000 transfer from the liquor store could go to the general fund. - Reduce the transfer to the Senior Center and they would have to cover their expenses through their fees. - A furlough could reduce the levy by $100,000. Option 2 is a 1.9% overall increase which is a 2% decrease to the general levy, amounting to $166,000, and a 14.86% increase to the debt service levy. Options for cutting $166,000 include: - Part-time park maintenance amounting to $31,000. - A combination of any of the two items in option 1 would be a reduction of 1.9%. - Although the overall levy would be reduced by 2%~ the general levy would take a reduction of 2.34%. General Fund Increase Options: Option I is a 4.9% overall increase which is an increase to the general levy of 1 % and 14.86% increase to the debt service levy. This would be a 1.34% increase in the general levy and an overall levy increase of 4.9%. Options to utilize this increase: - A 2% increase in non-police salaries amount to $63,865 or an increase of. 77%. Employees did take a furlough last year and have not had a salary increase in the past two years. - We would have start-up money for the Deputy Registrar. Mayor Larson noted in the previous option 2, this could have a significant impact on service levels and asked for examples. Parks and Recreation Director Distad stated it is more than just not mowing. We would not have warming houses open, landscaped areas would not be maintained, weed control would not happen, we would not get to graffiti and vandalism as quickly. Mayor Larson asked if all the services are coming out of the parks department. City Administrator Herlofsky replied it is an example of how it would start to affect services. We did not take this further, because we were working very hard on the bond issues. We c~n come back to the service levels. Councilmember May stated in the private sector we have all had to 18 Council Workshop Minutes July 12, 2010 Page 6 maintain services with less. It seems it is too easy to say we have to cut services. You have to come up with ways to maintain services with less. It is back to productivity and different ways of doing things or scheduling or management. She did not want to rely on the comment that if we are talking about reductions, then we will not be able to mow the grass. City Administrator Herlofsky noted taxes have not increased over the last 3-4 years. Departments have worked hard at doing more with less. We will reach a point where it will start affecting staffifwe make further reductions. Councilmember May stated that is back to her original question to see what it means for each department. Councilmember Fogarty went back to the bond for the wastewater treatment 1995 of$60,000. She asked if this was a levy to build a future wastewater treatment facility. Finance Director Walters replied no, it is to pay a wastewater treatment debt from 1995. City Engineer Schorzman stated there were some improvements done to the wastewater treatment facility in Empire. When the Met Council took over, we closed it, but the debt had to be paid off. Option 2 is a 5.78% overall increase which is an increase to the general levy of2% and a 14.86% increase to the debt service levy. Councilmember Fogarty stated ifwe are looking at anything other than the recommendation from staff which is the 3.9%, she does not like that the reductions, with the exception ofa furlough, all come from parks. These are the types ofthings people get upset about. We are taking away the things people need the most right now. They need an affordable poo~ because they do not have the money to do anything. When there are increases, she did not know ifher fIrst priority would be that employees get a raise. The rest of us have also not seen a raise in many years. Finance Director Walters stated these are just suggestions and if Council has other options, staff is open to them. The reason parks are looked at is you look at core services versus non-core; want versus need. The Parks Department is a nice to have amenity. Councilmember Fogarty would argue that they help with public safety and gives the kids something to do. To her it is not one or the other. Council was also given information on how the recommendation affects property taxes. Councilmember Donnelly stated no matter whether property values go down, we still have to collect this amount of tax, so the tax rate goes up. City Administrator Herlofsky agreed. As a result of values placed on property there has not been as much of a decrease on commercial and industria~ so you will see a shift to the commercial/industrial side. Finance Director Walters stated one item increased on the revenue side was building permits based on the 2009 actual and where we are now. We are at 98% of the budget now, so she increased it to $320,000 for 2011. Council was also shown transfers from the enterprise funds used to offset costs for the general fund, including liquor operations, sewer, storm water, refuse, and water. Staff is still working on franchise fees for seal coating. Regarding building permits, Councilmember May asked what percent staffwas using to come up with an increase of $100,000. Finance Director Walters looked at 2009 actuals and 2010 actuals and felt we could do at least what we anticipate in 2010. We will receive more than the $225~000 budgeted and close to over $300~OOO. She anticipated in 2011 we would also receive that same amount. Councilmember May recalled previous Councils used a certain percent to anticipate building 19 Council Workshop Minutes July 12, 2010 Page 7 permits. City Administrator Herlofsky stated even though staffhas made a recommendation of an increase in a previous year, we have exceeded it by a substantial amount each year. This is a conservative estimate. Mayor Larson stated it is true income so we have to use it. Council was provided with expenditures by account. Councilmember Fogarty noted the fire pension is an increase over previous years. Staff stated this is an estimate. It is high, because the City has to cover the losses in the market. Mayor Larson noted the total for other services and charges adds up to an incredible amount of money with no description. Finance Director Walters stated it is training, mileage, professional services, etc. Mayor Larson wanted to know what those are for. If the money is not used, it goes to the general fund. City Administrator Herlofsky stated we had $120,000 in the fund balance last year; that was after $350,000 in cuts early in 2009. Right now we are at 95%. Mayor Larson was wondering ifwe can tweak some areas, but it sounds like we are close to where we need to be. City Administrator Herlofsky stated we can always cut more, but it would have some affect on getting things done throughout the year. Ifwe did not put in overtime for snow removal, it would mean no plowing on nights and weekends. That is something we cannot control. Administrative Services Director Shadick noted as far as elections we will have to start putting money away for new election equipment which will be purchased in 2013 to use in 2014. We do have cost sharing with the County. We have not purchased new equipment since 1998. City Engineer Schorzman noted Mayor Larson had asked about the $34,000 in building inspections, 84% of that is tied up in data processing and IT charges which is integral to the permitting process. Finance Director Walters explained the special revenue funds. The ice arena fund has a negative fund balance of$196,581 and there is no money to transfer. City Administrator Herlofsky stated we have been making sure we are accurately charging the appropriate amount to the arena; not more than we should be. In assigning staff, that will help us to manage it better. Mayor Larson stated we can increase the ice rate and staff was going to work out a deal with the school. City Administrator Herlofsky stated we looked at the school's billing and what they charge. So the City will be charging the school for ice at the high school games $325/hour, not the usual $200/hour. We also prefer to not have the hockey association back out on hours they have reserved. Councilmember Fogarty stated that should be in the contract and felt the hockey association would agree to that. People who are helping to pay down the debt service should have a higher priority for ice hours than those not helping to pay down the debt service. City Administrator Herlofsky stated rather than transferring money in, over a period of time we would like to operate the arena better to make it more responsible for itself. Mayor Larson would also like to see better use of the arena in the off season. Councilmember Fogarty asked why the EDA is a special revenue fund. Finance Director Walters stated normally an EDA is not self-sufficient. Normally it receives tax levy dollars. Finance Director Walters stated the Rambling River Center will have a negative fund balance of $262,315 in 2010. Donations will be received and there are room naming rights. There will be $20,000 donated from the general fund and the amount of donations received will be $6,000. City Administrator Herlofsky noted Park and Recreation activities are a very big expense to the general fund budget. The policy ofthe City was to cover direct costs, but there is a fme line between what is direct and indirect. The administration of the programs is not being covered by 20 Council Workshop Minutes July 12, 2010 Page 8 the revenues. Mayor Larson stated ifwe have staff running the events, those hours should be covered. City Administrator Herlofsky noted we have one full-time person and one half-time person for clerical assistance and half of the time for a recreation programmer is charged to that area. Mayor Larson asked what we are doing to market the Rambling River Center. Staff stated we advertise on the website, have brochures at the door, and place articles in the City newsletter about events. Mayor Larson asked that things that go to individual homes be used to make the Rambling River Center more attractive. City Administrator Herlofsky stated if the sale of the old Rambling River Center is completed this year, that will help that deficit. The membership fees were at $10/year and it has been doubled to $20/year. We have not lost many members and the revenue is twice the amount, so we may have to be more aggressive. Finance Director Walters stated staff is looking at reducing the transfer from the liquor store in 2011 and bring the pool fund balance down to $323. Councilmember May stated regarding the Rambling River Center, the $20,000 is a transfer. Finance Director Walters stated we have $145,000 transferred in. $20,000 ofthat is a transfer. The transfer out will pay the debt. However, we are going to reduce the liability. In reducing the liability, it is considered a donation. When the debt is reduced, it is a contribution. The discussion then went back to the pool. Finance Director Walters stated the pool is about $50,000 in the hole every year. Regarding capital projects, Finance Director Walters pointed out under street construction, $2 million was included for projects and the bonding for $2 million to balance it out. This is for the 2nd Street project next year as well as the work in Dakota Estates as part of the CIP. Councilmember Fogarty asked if the franchise fee will pay the bond payments. Staff explained that is for seal coat. The objective is to obtain $400,000 for the seal coating franchise. Councilmember May asked if the additional franchise fees are taken into account with these numbers. City Engineer Schorzman replied no. There is $300,000 in the budget for seal coating for next year as a place holder. Ifwe go with franchise fees, the $300,000 will disappear. The fees would be received late in the year. City Administrator Herlofsky stated he wanted to have the emphasis for this meeting to be on the debt service funds. We still have time to talk about the options Council wants. We could have a short EDA meeting in July and we have five Mondays in August. We need action by Council at the first meeting in September at least acknowledging some levy amount. Ifwe do not do it at that time, we have to use this year's amount. We can always reduce the levy, but we cannot increase it. Councilmember Fogarty stated debt service levy aside, she does not want to lose the overall concept. When Council was talking about the phases, she was not looking at the debt service fund, she was looking at the general fund levy. If for no other purpose than to understand what services would be cut, she would like to see some detail from departments. She does not know what she is saving, if she does not know what can be cut. She does not know what her options are. She does not know what a reduction in services means department by department. If you tell a department to cut 5%, what will they have to cut and what will that mean to services and to 21 Council Workshop Minutes July 12, 2010 Page 9 staff. She understood that was a lot of work for staff, but she needs it to understand. Finance Director Walters asked if she wanted to see a 5% reduction. Councilmember Fogarty stated previously Council asked for 2% increase and 2% decrease. Councilmember May stated she expects the department heads to do that work, not the Finance Director. Finance Director Walters stated we have increases in salaries, in PERA, in health insurance; are we looking at the overall budget or the portion that does not include salaries. City Administrator Herlofsky stated that will be up to each department to decide. City Administrator Herlofsky stated staffwill get back to Council with a spreadsheet by department. He asked if Council wanted to have a meeting in July or August. Council would like to meet in July if staff can get the information ready. City Administrator Herlofsky suggested July 26. Councilmember May noted a spreadsheet is helpful, but even just bullet points would do. City Administrator Herlofsky stated if we give a dollar amount, there would have to be an explanation of what that is. The workshop date and time will be discussed at the July 19, Council meeting. As far as the percentages, Council wanted to see 2% and 5% decrease, and a 2% and 5% increase. MOTION by Fogarty, second by May to adjourn at 8:07 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 22 76 City of Farmington 430 Third Street Famlington, Minnesota 651.280.6800. Fax 651.280.6899 www.cl.mrm.ingum.mn.ul.. TO: Mayor, Councilmembers and City Administrator FROM: Teresa Walters SUBJECT: June Financial Report DATE: July 19,2010 Enclosed is the financial report for the months of January through June 2010. The report shows revenues and expenditures for 50% of the year. Below is a list of any discrepancies along with reasons for the variance from the 50%. If you have any questions prior to the meeting, please e-mail me at twalters@cLfarmington.mn.us or call me at 651-280-6880. General Fund Revenues Property taxes Amount Received 38.89% Licenses 70.46% 23 Reason for Variance We requested and received an advance in property taxes from the County in June. They provided us with 70% of our taxes without any paperwork letting us know the distribution (special assessments, delinquencies, current, debt, etc.) The entire amount was applied to the General Fund and will be adjusted next month, when the balance and paperwork arrives from the County. License revenue is higher due to the payment of the third quarter liquor licenses. Permits 82.08% Intergovernmental 26.33% Fines 30.19% Charges for services 25.10% Franchise Fees 67.15% Miscellaneous 98.59% Expenditures Historical Preservation 129.56% 24 The majority of this line item is building permit revenue. Bldg permit revenue is at 88% ofthe budget. YTD total building permit revenue is $198,230 compared to the annual budget of $225,000. We have not received any Police or Fire Aid. This normally does not show up until Fall. Fines are below the anticipated budget. 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. Payment received. In June we sold the property on 308 Elm Street. This also 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. Patrol Services 51. 77% Snow removal 52.32% Dew Days K -9 Expenditures were not budgeted; however, we received donations to cover this. Heavy snowfalls in January and February No budget for Dew Days Overall General Fund Revenues are at 40.28% of the budget. This is below budget; however, recreation revenue should increase this in the next couple of months. Expenditures look good since they are slightly lower than anticipated at 46.33% of the budget. 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). As of June, 2010, the Recreation Deficit has increased to ($376,673). The Arena Deficit has increased to ($223,275). The negative balance in the June Senior Center Column is due to a coding adjustment. An employee was incorrectly coding 100% of their time to the Senior Center. A portion should have been distributed to the General Fund recreation program. Revenues Amount Received EDA 140.33% Park Improvement 90.73% Expenditures Rambling River Center Renovation 174.28% Arena 53.96% 25 Reason for Variance We received a grant from the County. Building Permit Revenue and Special assessments. Renovation costs. In June expenditures included $21,500 for a heating! Air condition system. (payroll, utilities, uniforms, etc.) Professional services includes an Ice Arena study -January. Enterorise funds: These funds are self supporting and do not need fmancial assistance from the General fund. Liquor Revenues were $65,352 below expenditures in June. This is not unusual for this time of year ifweather is not favorable. The increase in expenditures is also due to the fIrst of three transfers of$25,000 to the pool. July and August tend to be warmer and sales typically increase with warmer weather. Overall expenditures are under budgeted amounts to date. 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. The fund has a negative fund balance in the amount of $22, 170. Overall the Sewer. Solid Waste. Storm Water. and Water enterprise revenues are exceeding expenditures, although sewer and solid waste revenues were under expenditures this month. Water revenues are down from budget due to higher usage in the summer months which is not billed until later. Graoh: The graph shows that overall 2010 YTD cashflow exceeds 2009's cashflow at this time. This is probably due to the early receipt of taxes in 2010. The City's goal should be to maintain not only a positive fund balance throughout the year, but also a fund balance that falls within the State Auditor's recommended 35-50%. Our current fund balance was at 24.9% at the end of 2009, the highest point of the year. The General Fund's current fund balance (as of June) has seen a reduction of$563,149 since the beginning of January 2010. This is consistent with prior years. Many of the City's revenues are not received until later in the year. The recreation funds and the Arena's fund balances have reduced by $191,017 since January 2010, adding to the deficit in 2009. 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U! ~ '" 0) N i I i II d U " C\l ...... en I'- ~ 0 0 0 0 c: 0 N N 0 ii: 0 0 - ..r:: "" Cl III E c: III 0 g E u C") VJ "'C 0 co ~ ... ~ 0 C> CO l: 0 0 "0 ::I N N ~ LL. <D LL. 0 . - ~ 0 >- CIl ;t:: l: CIl U C) c o C> c ~ o ~ U C\l 0 0 0 '" <f> '" co co co-i co-i It'l It'l I'- I'- co-i co-i <f> "( a:luelea pun:! " , I " 2 ~ "' ~ I <( <.> ~ H n ~ .~ g~ ~j 7e. City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 · Fax 651.280.6899 www.ci.farmington.mn.us TO: Mayor, Council Members, City Administrator FROM: Ken Lewis, Building Official SUBJECT: Second Quarter 2010 New Construction Report and Population Estimate DATE: July 19,2010 INTRODUCTION The following report summarizes the new construction permits issued during the second quarter of 20 1 0, and the year- end population estimate. DISCUSSION Second Quarter Building Permit Information: During the second quarter of the 2010 building construction season (April 1st through June 30th), the City issued 26 new single-family detached housing permits and 0 new multi-family permits, for a total of 26 new second quarter housing permits. Construction valuation for the single-family homes totaled $5,263,700. The average building valuation of the single-family homes during the second quarter of20l0 was $202,450, up from $202,078 during the fIrst quarter of 2010. (Note that the valuation averages do not represent the average sale price or average market value of the homes in question, since they do not include the value of the lot or any amenities added to the home that are not part of the building code formula). Year-End PopulatiOlz Estimate: At the beginning of 2003, City staff decided that each qUal1erly building permit report should also include an updated population estimate for the City of Farmington. After discussing several methods of calculating population, a decision was made to base our population estimates on Certificates of Occupancy rather than upon building permits. Building permit activity is not a "real time" reflection of actual population, given the "lag time" between the issuance of the permit and the actual occupancy of the dwelling unit (i.e., the time required to construct, market and sell the home). Accordingly, staff sta11ed with the City population as of Aprill, 2000 (as determined by the U.S. Census Bureau) and then determined the number of CertifIcates of Occupancy [C.O.s] issued by the City since that date. The number of C.O.s was multiplied by 2.95, which was (according to the 2000 Census) the average number of occupants per Farmington dwelling unit. The resulting calculations al'e as follows: 20490 + 12 20502 Estimated population as of December 31, 2006 = 4 units brought in by annexation for the period from 1/1/06 to 12/31/06 X 2.95 Estimated population as of December 31, 2006 31 + 142 20,644 + 124 20,768 +227 20995 + 77 21072 + 101 21,173 + 101 21,173 :!:.....B. 21,244 + 54 21,298 ~ 21,343 + 48 21,391 + ll5 21,506 + 51 21,557 + 97 21,654 + 62 21,716 + 168 21,884 = 48 Certificates of Occupancy issued for the period from 1/1/07 to 3/31/07 X 2.95 Estimated population as of March 31, 2007 = 42 Certificates of Occupancy issued for the period from 4/1/07 to 6/31/07 X 2.95 Estimated population as of June 31, 2007 = 77 Certificates of Occupancy issued for the period from 7/1/07 to 9/30/07 X 2.95 Estimated population as of September 30, 2007 = 26 Certificates of Occupancy issued for the period from 10/1/07 to 12/31/07 X 2.95 Estimated population as of December 31, 2007 = 34 Certificates of Occupancy issued for the period from 1/1/08 to 3/31/08 X 2.95 Estimated population as of March 31, 2008 = 34 Certificates of Occupancy issued for the period from 1/1/08 to 3/31/08 X 2.95 Estimated population as of March 31, 2008 = 24 Certificates of Occupancy issued for the period from 411/08 to 6/30/08 X 2.95 Estimated population as of June 30, 2008 = 18 Certificates of Occupancy issued for the period from 7/1/08 to 9/31/08 X 2.95 Estimated population as of September 31, 2008 = 15 Certificates of Occupancy issued for the period from 1011/08 to 12/31/08 X 2.95 Estimated population as of December 31, 2008 = 16 Certificates of Occupancy issued for the period from 1/1/09 to 3/31/09 X 2.95 Estimated population as of March 31, 2009 = 39 Certificates of Occupancy issued for the period from 4/1/09 to 6/30/09 X 2.95 Estimated population as of June 30, 2009. = 17 Certificates of Occupancy issued for the period from 7/1/09 to 9/30/09 X 2.95 Estimated population as of September 30, 2009 = 33 Certificates of Occupancy issued for the period from 10/1/09 to 12/31/09 X 2.95 Estimated population as of December 31, 2009 = 21 Certificates of Occupancy issued for the period from 1/1/10 to 3/31/10 X 2.95 Estimated population as of March 31, 2010 = 57 Certificates of Occupancy issued for the period from 4/1/10 to 6/30/10 X 2.95 Estimated population as of June 30,2010 ACTION REOUIRED This item is informational in nature. 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(I) "S 0:: ..., c .c .... <U c 0: 0 ~ ~ Q) c .c: ::s - ..., C 0 :i :>. (1] ~ 'E a. <( L.. (1] ~ o LO LO '<:t C> '<:t LO (Y) o (Y) LO C\l o C\l LO ..-- o ..-- LO paMa!^a~ sueld 38 .0 Q) u.. c (1] ..., o CX) (J) 0 0 0 ..- 0 0 0 t"l t"l t"l I I I I I I I . u Q) " 0 " " '\ " > \ 0 z .. .. .. .. \ t5 0 " ..... a. " Q) Cf) .. " :!: ..... " Ul Q) (/) ::l os: S " OJ Q) ::l 0:::: CI) <{ C 'S: ro CI) 0:: ~ en Iii >. ..- ('I') .... C :; Q) 0 CIS , OJ I- c::: .c ro -0 .... a.. c 2 (ij 0 ro ~ :; ::J Q) E c c C .. ::l ::l .. , u <( .. u <( .. .. .. .. >. .. ro ~ 2: ~ " " " .. 'C \ a. .. <( .. .. .. .. .. L.. .. ro .. 2: .. .. .c Q) u. c ro 0' o o ("I) o LO t"l o o t"l o LO ..- o o ..- o LO paMa!Aa~ sueld 7J City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800. Fax 651.280.6899 W \.......\.:ci. fdrm. ingt4111. n1ll.LL'" TO: Mayor, Councilmembers and City Administrator FROM: Lena Larson, Municipal Services Coordinator SUBJECT: Adopt Resolution Accepting Donation for Pollution Prevention Day DATE: July 19, 2010 INTRODUCTION Dakota Electric Association has donated $1000 toward Pollution Prevention Day 2010. DISCUSSION Dakota Electric Association has once again generously donated $1000 as a sponsor of Pollution Prevention Day. The event will be held in Rambling River Park on Friday, September 17,2010. Pollution Prevention Day has been held for Farmington students since 1997. For 2010, we are anticipating approximately .505 - 4th grade participants. Staff will communicate the City's appreciation on behalf of the Council to Dakota Electric Association for their support of Pollution Prevention Day. ACTION REOUESTED Approve the attached resolution accepting the donation from Dakota Electric Association. Respectfully submitted, Lena Larson Municipal Services Coordinator 40 RESOLUTION No. R40-10 ACCEPTING DONATION FROM DAKOTA ELECTRIC ASSOCIATION FOR POLLUTION PREVENTION DAY 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 on the 19th day of July, 2010 at 7:00 p.m. Members Present: Members Absent: Larson, Donnelly, Fogarty, May, Wilson None Member Fogarty introduced and Member Wilson seconded the following: WHEREAS, Dakota Electric Association has donated $1000 towards Pollution Prevention Day; and WHEREAS, it is in the best interest of the City to accept such donations. NOW, THEREFORE, BE IT RESOLVED that the City of Farmington hereby accepts the generous donation of $1000 from Dakota Electric Association to be used for Pollution Prevention Day. This resolution adopted by recorded vote of the Farmington City Council in open session on the 19th day of July 2010. ~~~ Mayor SEAL -M Attested to the 6? () day of July 2010. 7e City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800. Fax 651.280.6899 www.ciotarm.ingttm.nm.LL.I TO: Mayor, Councilmembers and City Administrator FROM: Jeremy Pire, Facility Maintenance Supervisor SUBJECT: Adopt Resolution Accepting Donations to the 2010 Spring Skating Competition DATE: July 19,2010 Introduction Donations totaling $119.66 were received from Northwest Design Ink and U'SAgain, LLC for the 2010 Spring Skate Competition. DISCUSSION The 8th Annual Spring Skate Competition was held on Saturday, March 27,2010, at the Schmitz Maki Arena. The business identified above donated money to assist in making the skating competition a unique, fun and affordable event for all participants. The money donated was used to offset program costs. Staffwill communicate the City's appreciation on behalf of the Council to the businesses for their generous donations. ACTION REOUESTED Adopt the attached resolution accepting the donations for the 8th Annual Spring Skating Competition from Northwest Designs Ink and U'SAgain, LLC. Respectfully submitted, Jeremy Pire Facility Maintenance Supervisor 42 RESOLUTION NO. R41-10 ACCEPT DONATION TO THE 8th ANNUAL SPRING SKATE COMPETITION FROM NORTHWEST DESIGN INK AND U'SAGAIN, LLC. 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 on the 19th day of July, 2010 at 7:00 p.m. Members Present: Larson, Donnelly, Fogarty, May, Wilson Members Absent: None Member Fogarty introduced and Member Wilson seconded the following: WHEREAS, the businesses identified have donated $119.66 to offset costs associated with the 8th Annual Spring Skate Competition; and, WHEREAS, it is in the best interest of the City to accept such donations. NOW, THEREFORE, BE IT RESOLVED that the City of Farmington hereby accepts with gratitude the generous donation of money from U'SAgain, LLC and Northwest Design Ink. This resolution adopted by recorded vote of the Farmington City Council in open session on the 19th day of July, 2010. _~~-L- Mayor Attested to the~O-M day of July, 2010 SEAL 7+ City of Farmington 430 Third Street l;armington, Minnesota 651.280.6800. Fax 651.280.6899 www.ciomrm.ingtlm.TIm.LL<; TO: Mayor, Councilmembers, City Administrator FROM: Lisa Shadick, Administrative Services Director SUBJECT: Temporary On-Sale Liquor License - Farmington Municipal Liquors DATE: July 19,2010 DISCUSSION Farmington Municipal Liquors is requesting a Temporary on-sale Liquor License for a wine tasting event, to be held on July 28,2010. This event will be held at Rambling River Park. Per State Statute, a Temporary Liquor license must fIrst be approved by the City and then forwarded to the State for approval. A City fee has not been established for a Temporary On-Sale Liquor License. The State of Minnesota also waives all fees for Temporary Liquor Licenses for non-profit organizations. Farmington Municipal Liquors qualifies as a non-profit organization. Therefore, no license fee is proposed at this time. ACTION REOUESTED Approve the attached application for a Temporary Liquor License for Farmington Municipal Liquors, for July 28,2010. Respectfully submitted, Lisa Shadick, CMC Administrative Services Director 44 Minnesota Department of Public Safety Alcohol and Gambling Enforcement Division 444 Cedar St-Suite 133 St. Paul, MN 55101-5133 (651)296-6439 TDD (651)282-6555 -.... APPLICATION AND PERMIT FORA TEMPORARY ON-SALE LIQUOR LICENSE ORGANIZATION OFFICER'S NAME ORGANIZATION OFFICER'S NAME DAlE ORGANIZED \~ CITY OTHER NONPROFIT ~ ADDRESS ~{' .+ Location where license will be used. If an outdoor area, describe ~ ~ ~ ,,'. '\ ~~ ~~.',. ~ $l r 70\." f; ( ~- <&10 Q"N"\ . ~(" ~: '\\0 \atJ \) ~ h.l)~ --'r ~+ It\~ Will the applicant contract for intoxicating liquor services? If so, give the name and address of the liquor licensee providing the service. l.g'AL~~...~ ~ C)c;.. "<"vV C..\;-t< \ M\\'kll\} ~~c6~.1. \ ~)\\t<;}W ~~(\~~ Will the applicant carry liquor liability insurance? If so, the carrier's name and amount of coverage. (NOTE: Insurance is not mandatory.) APPROVAL APPLICATION MVST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITl1NG TO ALCOHOL & GAMBLING ENFORCEMENT CITY/COUNTY DATE APPROVED CITY FEE AMOUNT UCENSE DATES DATE FEE PAID SIGNATURE CITY CLERK OR COUNTY OFFICIAL APPROVED Alcohol & Gambling Enforcement Director Notel Do not separate these two parts, send both parts to the address above and the origlnal signed by this divislon will be returned as the license. Submit to the city or County at least 30 days before the event. PS-09079 (6198) 45 ?J City of Farmington 430 Third Street l;armington, Minnesota 651.280.6800. Fax 651.280.6899 wwwociomrmingtllll.mn.LL.l TO: Mayor, Councilmembers and City Administrator FROM: Lisa Shadick, Administrative Services Director SUBJECT: Gambling Event Permit - Farmington Sno- Tigers DATE: July 19,2010 INTRODUCTIONI DISCUSSION The Farmington Sno- Tigers is requesting a Gambling Event Permit for a raffle to be held at the Farmington American Legion on September 18,2010. Per State Statute 349.166 and pertinent City Code, a Gambling Permit must be issued by the City for this type of event. The appropriate fees have been received and the Police Department has reviewed the application. BUDGET IMPACT Gambling permit fees are included in the revenue estimates of the 2010 budget. ACTION REOUESTED Approve the attached resolution granting a Gambling Event Permit to the Farmington Sno- Tigers at the Farmington American Legion, 10 North 8th Street, on September 18, 2010. Respectfully submitted, Lisa Shadick, CMC Administrative Services Director 46 RESOLUTION NO. R42-10 APPROVING A MINNESOTA LAWFUL GAMBLING EVENT PERMIT APPLICATION FOR FARMINGTON SNO-TIGERS 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 on thel9th day of July 2010 at 7:00 p.m. Members Present: Larson, Donnelly, Fogarty, May, Wilson Members Absent: None Member Fogarty introduced and Member Wilson seconded the following: WHEREAS, pursuant to M.S. 349.166, the State of Minnesota Gambling Board may not issue or renew a Gambling Event Permit unless the City Council adopts a Resolution approving said permit; and, WHEREAS, the Farmington Sno- Tigers submitted an application for a Gambling Event Permit to be conducted at the American Legion, 10 North 8th Street, for Council consideration. NOW, THEREFORE, BE IT RESOLVED by the Farmington City Council that the Gamblinm Event Permit for the Farmington Sno- Tigers to be conducted at the American Legion, 10 North 8 Street is hereby approved. This resolution adopted by recorded vote of the Farmington City Council in open session on the 19th day of July 2010. ~~ ~ayor Attested to the ~c>-+h day of July 2010. SEAL 7~ City of Farmington 430 Third Street l;armington, Minnesota 651.280.6800. Fax 651.280.6899 w....lwociotarm.;ngt411l.nm.Ll.." TO: Mayor, Councilmembers, City Administrator FROM: Lisa Shadick, Administrative Services Director SUBJECT: Liquor License Amendment - Blondie's Tavern DATE: July 19,2010 DISCUSSION Pursuant to City Ordinance 3-12-14, any enlargement, substantial alteration or extension shall not be allowed unless the council approves an amendment to the liquor license. Blondie's Tavern is requesting an amendment to their license to include the fenced in outdoor seating area adjacent to their establishment. 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Gl ~ ('I) I"- ~CL City of Farmington 430 Third Street Farmington, [\.1inncsota 651.280.6800. Fax 651.280.6899 ww\\.:ci. mrm.;ngtnn.ml1.LlI" TO: Mayor, Council Members, City Administrator FROM: Lee Smick, City Planner AICP, CNU SUBJECT: Request to Vacate Portions of Existing Drainage and Utility Easements Meadow Creek 4th Addition DATE: July 19, 2010 INTRODUCTION The City has received a request from Progress Land Companl to vacate drainage and utility easements for nine single-family lots in the Meadow Creek 4 Addition. The Developer has submitted easement descriptions (Exhibit A) requesting the drainage and utility easements to be vacated for each lot. Lots 18 & 19, Block 3, Lots 11 & 12, Block 6 and Lots 41, 42, 43, 44 & 45, Block 5 on the Meadow Creek 4th Addition plat are the requested lots for these actions. DISCUSSION The hatched areas on the Exhibits show the proposed vacations of the drainage and utility easements. The original grading and drainage plan showed a 20-foot wide easement between the lots to allow for sewer lines to be constructed. However, a redesign ofthe grading and drainage plan no longer requires the need for the sewer lines in these locations. Since the sewer was not constructed between the lots, the engineering division does not see the need for a 20-foot easement and therefore, a reduced easement on each lot is acceptable. The developer requests to vacate the easements shown on the attached Exhibits in order to allow the homeowners of each property to utilize these areas of their yard upon approval of the vacation requests. Lot 18, Block 3 (18636 Dunbury Avenue) Lot 19, Block 3 (18630 Dunbury Avenue) Lot 11, Block 6 (18627 Dunbury Avenue) Lot 12, Block 6 (18633 Dunbury Avenue) Lot 41, Block 5 (18658 Dulcimer Circle) Lot 42, Block 5 (18662 Dulcimer Court) Lot 43, Block 5 (18672 Dulcimer Court) Lot 44, Block 5 (18674 Dunbury Avenue) Lot 45, Block 5 (18680 Dunbury Avenue) The City Attorney has reviewed and approved the proposed vacations ofthe drainage and utility easements. 75 ACTION REOUESTED Adopt a resolution to vacate portions of existing drainage and utility easements from Lots 18 & 19, Block 3, Lots 11 & 12, Block 6 and Lots 41, 42, 43, 44 & 45, Block 5 on the Meadow Creek 4th plat. Respectfully submitted, Lee Smick, City Planner AICP, CNU cc: Property Owners 76 RESOLUTION NO. R43-10 A RESOLUTION VACATING PORTIONS OF EXISTING DRAINAGE AND UTILITY EASEMENTS 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 on the 19th day of July, 2010 at 7:00 P.M. Members Present: Larson, Donnelly, Fogarty, May, Wilson Members Absent: None Member Wilson introduced and Member Fogarty seconded the following: WHEREAS, Portions of existing drainage and utility easements need to be vacated from Lots 18 & 19, Block 3, Lots 11 & 12, Block 6 and Lots 41, 42, 43, 44 & 45, Block 5 on the Meadow Creek 4th plat; and WHEREAS, the City of Farmington requests to vacate portions of the existing drainage and utility easements from Lots 18 & 19, Block 3, Lots 11 & 12, Block 6 and Lots 41,42,43,44 & 45, Block 5 on the Meadow Creek 4th plat as depicted on the attached Exhibit "A" and Exhibit "B"; and WHEREAS, it appears that it is in the public interest to vacate the portions of the drainage and utility easements depicted on the attachments marked Exhibit "A" and Exhibit "B"; and WHEREAS, pursuant to Minn. Stat. ~412.851, the Farmington City Council has conducted a hearing preceded by published and posted notice to consider the easement vacations requested by the City of Farmington. NOW, THEREFORE, BE IT RESOLVED by the City Council of Farmington: 1. The portions of the drainage and utility easements depicted in the attachments marked as Exhibit "A" and Exhibit "B" are hereby vacated as requested. 2. The City Clerk is directed to file a certified copy of this resolution with the County Auditor and County Recorder in and for Dakota County, Minnesota. This resolution adopted by recorded vote of the Farmington City Council in open session on the 19th day of July, 2010. Attest to the ~~ day of July, 2010. SEAL ,;~. A Release of Drainage and Utility Easement Sketch for: PROGRESS LAND COMPANY 3 17 DUM ~ VS-'t%:,y 14 Scale: 1 Inch ... 50 feet ~ Denotes drainage and uUllty easement 10 be vacated Rehder and Associates. 'nc. CML ENGINEERS AND lAND SURVfYORS J4fO 'od.",1 om. . SlIfle 240 . Ell9<'ft, AI1nn.aola . Phone (851) 0152-.5051 78 Release of Drainage and . Utility Easement Sketch for: PROGRESS LAND COMPANY DULCIMER COURT ~U1 '::)'::) mZ ZW ::>~ a r------l I I I I 42 I I I 110 I ..I o ... \O~~\=::.:..~:7~~11 5 ..~\...~ ~(!>;-~a. Q.96' I C'1>~ tVe:.,,~.r. QI')O' I 45 I I -10o~ ~g:O;~(!>l)f I I I 41 ~ r,.1>~ _-...I ~~ I J ~~~~ I -- - ~~~~J L~~~ ~~~~ r~~~ ~~~ \ -------- ~-""-- \ . - -''' 40 ' / " ! N 46 Scale: 1 inch = 80 feet Q: ~~ (30 ~~ ::>0 o ~ Denotes drainage and ufl/lty easement to be vacated Rehder and Associates. 'nc. CML ENGINEERS AND lAND SURVfYORS JHO '.doral Drlvo . SUllo 240 . Eagon, l.I!nlluola . Pholltl (6111) .ul2-1lO1I1 79 Idee.. City of Farmington 430 Third Street Farmington, Minnesota 651.280.6800 . Fax 651.280.6899 www.ci.farmington.mn.us TO: Mayor and Councilmembers FROM: Peter J. Herlofsky, Jr. City Administrator SUBJECT: Dew Days 2010 DATE: July 19,2010 INTRODUCTION I DISCUSSION Over the last couple of weeks we have all celebrated the success of our Dew Days event in 2010. A great deal of time and effort by City employees contributed to the success of the event. Attached is a spreadsheet showing hours recorded in payroll for different activities for Dew Days. It will not include administrative salaries associated with assisting or participating in different ways by the Police Chief or other management personnel as it is included in their normal salaries. I would appreciate discussion by Council clarifying the participation by the City in the Dew Days event. Prior Councils have noted that staff should do whatever they can to make Dew Days a success. I would like to reaffirm that with the current Council as we continue to work on our 2011 budget. ACTION REQUESTED Council support of Dew Days activities. g;~~~4 Peter Je:i. ;1 , City Administrator IJ 80 Explanation of 2010 Dew Days Hours by City Staff Recreation: Dew Run Seasonal Staff Hours: 30 ($265.44) Dew Run Full-time Staff Hours: 25 ($829.50) Softball Tournament Full-time Staff Hours: 2 ($66.36) Rambling River Center: Missie Kohlbeck spent a total of 26 hours preparing the Rambling River Center for various events held there. Cindy McMillen spent a total of 16 hours attending events and preparing for events at the Rambling River Center. Seasonal staff spent a total of 25 hours setting up for events, practicing and participating in the parade. Volunteers spent a total of 18 hours preparing for Rambling River Center events. Total hours by all Rambling River Center staff was 67 hours. Total hours worked by all volunteers was 18 hours. Miss Farmington Pageant Hours Lena Larson spent 32.25 hours attending committee meetings, making preparations for the Pageant, attending the practice and the Pageant itself. Cynthia Muller spent 85.5 hours attending committee meetings, making preparations for the Pageant, attending the practice and the Pageant itself. 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