Council Work Session

AGENDA Council Work Session Meeting 5:00 PM - Monday, February 2, 2026 Farmington City Hall, Conf Room 170 Page 1. CALL TO ORDER 2. APPROVE AGENDA 3. DISCUSSION ITEMS 3.1. Emerald Ash Borer (EAB) Update - 15 minutes 2 Discussion only Agenda Item: Emerald Ash Borer (EAB) Update - 15 minutes - Pdf 3.2. Geographic Information System (GIS) Update - 15 minutes 3 Discussion only Agenda Item: Geographic Information System (GIS) Update - 15 minutes - Pdf 3.3. Municipal Liquor Profits Allocation Discussion - 60 minutes 4 - 10 Provide Staff direction on the possible reallocation of Municipal Liquor profits. Agenda Item: Municipal Liquor Profits Allocation Discussion - 60 minutes - Pdf 4. CITY COUNCIL COMMITTEE UPDATE 5. CITY ADMINISTRATOR UPDATE 6. ADJOURN Page 1 of 10  COUNCIL WORK SESSION AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: John Powell, Public Works Director Department: Engineering Subject: Emerald Ash Borer (EAB) Update - 15 minutes Meeting: Council Work Session - Feb 02 2026 INTRODUCTION: On March 20, 2023, the City Council approved an EAB Management Plan to keep public safety as the focus while aggressively responding to EAB. DISCUSSION: Ben Humlie, Natural Resources Specialist, will be in attendance to update City Council on the EAB Management Plan implementation. Through the combined efforts of Public Works Staff, Parks & Recreation Staff, and contractors, the City has made great progress. Ben will review the City's Management Plan implementation accomplishments, projects currently underway, remaining areas of ash trees, and reforestation efforts to date. ACTION REQUESTED: Discussion only Page 2 of 10  COUNCIL WORK SESSION AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: John Powell, Public Works Director Department: Engineering Subject: Geographic Information System (GIS) Update - 15 minutes Meeting: Council Work Session - Feb 02 2026 INTRODUCTION: In February of 2023, the City Council replaced the vacant Engineering Technician position with a new position, GIS Specialist. As expected, this position not only provides support to Public Works but has also provided outstanding and extensive GIS service to other departments. Danielle Olson joined the City as GIS Specialist in June of 2023 and will update the City Council on the City's recent GIS activities and a look at what is ahead. DISCUSSION: A brief overview of information and graphics to be covered during the update is as follows:  GIS integration across departments.  Highlights from 2025.  Automation of processes.  As Built linking and Toys for Town  Short-Term and Long-Term goals ACTION REQUESTED: Discussion only Page 3 of 10  COUNCIL WORK SESSION AGENDA MEMO To: Mayor, Councilmembers and City Administrator From: David Chanski, Asst City Admin/HR Director Department: Administration Subject: Municipal Liquor Profits Allocation Discussion - 60 minutes Meeting: Council Work Session - Feb 02 2026 INTRODUCTION: Staff would like to discuss the allocation and use of profits from Municipal Liquor operations. DISCUSSION: The City Council established a policy in 2015 to designate where profits from Municipal Liquor operations are to be allocated. It was determined that profits would be split into four categories (pots):  Pot 1 - Cash for Operations  Pot 2 - Operational Transfers  Pot 3 - Community/Government Transfers  Pot 4 - Future Liquor Store Capital Needs The policy states that Pot 1 should maintain a cash balance of $325,000 to cover operating expenses for three months. Profits allocated to Pot 2 are to be transferred to the City's General Fund to cover services provided to Liquor Operations by City Hall Staff (Human Resources, Finance, etc.). That amount is +/- $100,000 and rises with inflation. After profits are allocated to Pots 1 and 2, the remaining profits are split 50/50 between Pots 3 and 4. As of 12/31/2024, there was approximately $900,000 in Pot 3 and $1,300,000 in Pot 4. $350,000 from Pot 3 has been committed to the skate park project currently underway. Staff is recommending a change to the allocation of Municipal Liquor profits that can be seen in the attached proposal. ACTION REQUESTED: Page 4 of 10 Provide Staff direction on the possible reallocation of Municipal Liquor profits. ATTACHMENTS: Municipal Liquor Profits Proposal Farmington Municipal Liquor Store Financial Policy - June 2015 Page 5 of 10 Introduction: In 2015 a policy was established to designate where Liquor operation profits are allocated. It was determined that profits would be split into four categories (pots). With our rapid growth and our desire to have more of a direct benefit to our community, it is staff’s recommendation that we adjust Liquor stores’ profit allocation. Current Pot Split Pot 1 – Cash for Operations • Cash reserves to cover operating expenses for three months. • Balance to remain at $325,000 Pot 2 – Operational Transfers • Paid to the City to cover Liquor Ops services received from City Hall staff • +/- $100,000, rises with inflation and COLA Pot 3 – Community/Government Transfers • Used for projects that directly benefit the community • 50% of revenue remaining after Pot 1 and Pot 2 are replenished Pot 4 – Future Liquor Store Capital Needs • For potential future Liquor Operations capital needs • 50% of revenue remaining after Pot 1 and Pot 2 are replenished Current Pot Funds Liquor Pot Funds $325,000 $100,000 $1,300,000 $900,000 Pot 1 (Cash for Operations) Pot 2 (Operational Transfers) Pot 3 (Community/Government Transfers) Pot 4 (Future Liquor Capital Needs) *2025 revenues not included* Page 6 of 10 Proposed Pot Split Pot 1 – Balance to remain at $325,000 Pot 2 – Remains the same, +/- $100,000 Pot 3 – Remaining revenue after Pot 1, Pot 2, and Pot 4 are replenished Pot 4 – Balance set to min/max $800,000 • Justification – By adjusting Pot 4 allocation we can keep adequate reserves for future Liquor Operational needs (insurance deductible, relocation, or additional location), while enabling us to have a more direct benefit to the community. Estimated Adjusted Pot Funds (incl. 2025 estimated, w/ skate park) $325,000 $800,000 $105,000 $1,600,000 Pot 1 (Cash for Operations) Pot 2 (Operational Transfers) Pot 3 (Community/Government Transfers) Pot 4 (Future Liquor Capital Needs) Page 7 of 10 Page 8 of 10 Page 9 of 10 Page 10 of 10