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HomeMy WebLinkAbout04.21.96 Council Packet AGENDA COUNCIL MEETING APRIL 21, 1997 6:30 P.M. - Council/Chamber Business Meeting 1. CALL TO ORDER - 7:00 P.M. 2. PLEDGE OF ALLEGIANCE 3 . APPROVE AGENDA 4. CITIZENS COMMENTS (5 minute limit per person for items not on the agenda.) a. Membership in Center for American Experiment 5. CONSENT AGENDA (All items approved in 1 motion unless anyone wishes an item removed for discussion) a. Minutes - 4/21 (Regular) b. Resolution - Accept Donation from Dakota Electric c. Resolution - Proclaim Arbor Day on April 25th d. Resolution - Accept Bids/Award Contract - Rapid Rail Box e. Replace Panels on Parks and Recreation Sign f. Appointment Recommendation - City Engineer g. Distribution of Adopted 1997 Budget h. Approve CIP/Other City Projects and Parks i. Repairs to Public Works Garage Door j. Approve Payment of Bills 6. PUBLIC HEARINGS/AWARD OF CONTRACT a. Consider Establishing TIF District - Eagles Club b. Consider Amending Downtown Redevelopment District c. Industrial Revenue Bonds for precision Engineering 7. PETITIONS, REQUESTS AND COMMUNICATIONS a. Petition - South Suburban Medical Center Street & Utility Project 8. UNFINISHED BUSINESS a. CIP Project Development/Process Schedule - Revised b. Award Sale of G.O. Revenue Bonds - Water Reservoir (Supplemental) c. Resolution Accept Bids/Award Contract - Loader (Supplemental) 9. NEW BUSINESS a. Resolution - Industrial Park Phase II Assessments b. Resolution - Accept Feasibility Study/Set Hearing Date - Henderson Storm Sewer c. Ordinance - Height Regulations - Air Space Safety 10. ROUNDTABLE 11. ADJOURN 11. EXECUTIVE SESSION a. Administrator Performance Review TO: Mayor and Councilmembers FROM: John F. Erar, City Administrator SUBJECT: Supplemental Agenda Items DATE: April 21, 1997 It is requested that the April 21, 1997 agenda be updated as follows: Item 6e - Industrial Revenue Bonds for precision Engineering The attached resolution is a revised version of the one included with the agenda packet. Item 8b - Water Reservoir Revenue Bonds Memo from Finance Director Roland. Financial consultant Thomas Truszinski will attend the meeting to answer questions and present the resolution. Item 8e - Accept Bids/Award Contract - Loader Memo from Finance Director Roland. Financial Consultant Thomas Truszinski will attend the meeting to answer questions and present the resolution. ectf77:' John F. Erar City Administrator CitlJ. of FarminiJton 325 Oak Street · Farmington} MN 55024 · (612) 463.7111 · Fait (612) 463.2591 FROM: Mayor and City Council City Administrator ~ Robin Roland, Finance Director .-;-."., TO: SUBJECT: Center for the American Experiment DATE: April 21, 1997 INTRODUCTION At the Council meeting on April 7, 1997, Henry Iwerks inquired as to the City's possible membership in the Center for the American Experiment. DISCUSSION The City of Farmington does not belong to the Center for the American Experiment, nor have they at any time in the recent past. As part of the budget process each year, dues and memberships for organizations which benefit the City and its staff are reviewed. Council approves those memberships as part of the Budget. Flyers for many organizations are received by the City each day, and as with most non essential mail, most of them are recycled. ACTION REQUIRED For council's information. Respectfully submitted, ~A/~ . Robin Roland Finance Director cc: Henry Iwerks CitlJ. of Farmin9ton 325 Oak Street · FarminlJton, MN 550211 · (612) 1163-7111 · Fax (612) 1163-2591 SA COUNCIL MINUTES REGULAR APRIL 7, 1997 1. The meeting was called to order by Mayor Ristow at 7:00 P.M.. Members Present: Ristow, Cordes, Fitch, Gamer, Strachan. Members Absent: None. Also Present: City Administrator Erar, Attorney Grannis. 2. Mayor Ristow led the audience and Council in the Pledge of Allegiance. 3. MOTION by Cordes, second by Gamer to approve the agenda with the following changes: a) Remove Item Sb - Nelsen Hills 6th development agreement from the agenda. b) Remove Item Sk - Approve CIP/Other Projects/Parks from Consent and discuss it with Item 8c - Park Improvement Fund Workshop Date. APIF, MOTION CARRIED. 4. Tax Equalization Meeting Bill Peterson of the Dakota County Assessor's Office informed Council and members of the audience that representatives from his office were available to meet with residents concerned about their property valuations. S. Citizen Comments Henry Iwerks - Expressed his thoughts regarding several issues dealing with City financial matters and promises made by candidates during their election campaigns. Police Chief Siebenaler presented a commendation for outstanding performance of duty to Police Officer Michael Aamot. The City of Lakeville Chief of Police read the commendation and joined in congratulating Officer Aamot. Council offered their congratulations as well. 6. MOTION by Gamer, second by Fitch to approve the Consent Agenda as follows: a) Approve minutes - 3/S - Special; 3/8 - Special; 3/17 - Regular. b) Approve Spring Clean Up Day Agreements c) Adopt RESOLUTION NO. R37-97 approve grant application for Dak. Co. Landfill Abatement Innovation Funds and RESOLUTION NO. R38-97 approving a joint powers agreement with Apple Valley related to multi-family building recycling. d) Approve purchase of mobile radio using DNR reimbursement funds - Fire Department. e) Approve attendance at State Fire School. f) Approve attendance at class on hydraulic systems - Public Works mechanic. g) Acknowledge purchase of Finance Department printer. h) Acknowledge resignation of Civil Engineer. i) Adopt RESOLUTION NO. R39-97 - CDBG funding - eliminate blighted property. j) Approve publication of City Administrator ordinance summary. k) Approve attendance at ambulance operations class - Rescue Squad. 1) Approve purchase of budgeted 4x4 grass fire vehicle - Fire Department. m) Approve attendance at MCMA Annual Conference - City Administrator. n) Approve payment of the bills as submitted. APIF, MOTION CARRIED. 7. 1997 Seal Coat Project Public Hearing Interim Engineer Mann provided background information on the project, including the proposed assessments. Mayor Ristow asked for comments and questions from audience members. There was no public comment. MOTION by Gamer, second by Strachan to close the public hearing. APIF, MOTION CARRIED. MOTION by Strachan, second by Cordes to adopt RESOLUTION NO. R40-97 ordering the project, approving the plans and specifications, and authorizing the advertisement for bids for Project 97-05 - 1997 Seal Coating. APIF, MOTION CARRIED. 8. Cameron Woods Plat Public Hearing Planning Coordinator Smick explained the different aspects of the plat noting the following: a) the townhouse development would provide housing for approximately 186 people; b) marketing would target first time homebuyers; c) a homeowners association would be established; d) the 50 foot tree line buffer would remain intact; e) access would be a private road; f) pine trees would be placed along the curves to shield headlight glare from adjacent property. Councilmember Strachan asked if the area between Pilot Knob Road and the townhomes would be open land. Ms. Smick replied that it would. Jack Benedict, developer, stated that as many trees as possible would be saved and the townhomes would be at least 100 feet from pilot Knob Road. Resident Judy Bryant asked which curves woul be planted with pine trees. Ms. Smick indicated them on the plat. Interim Engine Mann asked about ponding areas on the east side of the plat. Planning Coordinator Smick responded that there would be a need for ponding in that area. MOTION by Fitch, second by Gamer to close the public hearing. APIF, MOTION CARRIED. MOTION by Gamer, second by Cordes to adopt RESOLUTION NO. R41-97 approving the preliminary and authorizing the signing of the final plat of Cameron Woods Townhomes contingent upon the execution of a development agreement. APIF, MOTION CARRIED. Member Strachan indicated his pleasure with the developer's efforts at retaining the green space/hillside in the plat. 9. First Quarter Building Permit Summary Planning Coordinator Smick presented the summary noting that while new housing starts were down from first quarter last year, over half of them had just been issued in March. She also stated that the valuation of properties being constructed was up. 10. Legislative Update Administrator Erar informed Council that he had attended a conference to discuss various legislative issues on March 20th. He noted that of the 8 legislators invited to attend, only 2 were present. Various information on current legislative issues had been forwarded with the agenda packets for Council review. 11. MOTION by Fitch, second by Gamer to set the public hearing for the Main Street Improvement Project for May 27, 1997 at 7:00 P.M. in the Farmington Library conference room. APIF, MOTION CARRIED. 12. CSAH 31 Project Update Administrator Erar presented the most recent information on construction of pilot Knob Road, stating he felt Council should begin considering financing options. Discussion took place concerning the impact of assessing the project versus a City wide tax levy. It was noted that the assessment area would be a one half mile radius of the new road alignment. Mr. Erar informed Council the County was moving forward with right of way acquisition and that noise mitigation legislation appeared to have a fair chance of passage. If the mitigation exemption was approved, construction would probably begin in late Fall of 1997 or early 1998. 13. Bill Peterson from the Assessor's Office informed Council that 10 residents had presented their property valuation concerns. He requested Council close the public hearing. MOTION by Gamer, second by Ristow to close the 1997 Annual Board of Equalization hearing. APIF, MOTION CARRIED. 14. Set Park Improvement Workshop Date/Approve CIP - Other Projects/Parks (Item 5k) Administrator Erar explained that Council's decision to deny the Park referendum did not remove those improvements/projects from the CIP. Member Fitch stated that it was important to establish a policy on park improvement funding now in order to avoid future problems. Member Cordes stated she felt it was important to upgrade the existing parks. With the projects' inclusion in the CIP, the Council would review each project individually and determine the best financing mechanism at that time. It was Council consensus to set the Parks Improvement Project workshop for Wednesday, April 16, 1997 at 6:30 P.M.. Approval of the remaining portions of the CIP was tabled until after the workshop. 15. General Obligation Revenue Bonds - Water Reservoir Finance Director Roland informed Council that the Water Board had authorized the sale of revenue bonds to finance the water reservoir construction at its March 24th meeting. The sale date has been set for April 21st. Ms. Roland noted that the Water Board had saved funds from water usage fees over a period of time to finance this improvement. MOTION by Gamer, second by Cordes to adopt RESOLUTION NO. R42-97 authorizing the sale of $2.14 million in General Obligation Water Revenue Bonds on April 21, 1997. APIF, MOTION CARRIED. 16. Sex Offender Notification Policy Police Chief Siebenaler explained the notification policy and the different levels of notification based on the offender's likelihood of reoffending. The policy had been drafted by POST and was being adopted in many communities. Mr. Siebenaler stressed that, at this time, the City has no information regarding any sex offenders to be released within the City. It was requested that an article be placed in the Farmington Update explaining the policy to residents. MOTION by Gamer, second by Strachan to adopt the Sex Offender Notification Policy as presented. APIF, MOTION CARRIED. 17. Joint City Participation in Trout Stream Study Interim Engineer Mann explained that the City of Lakeville has requested Farmington participation in this study. He informed Council that several sections of the Vermillion River and its tributaries have been designated as trout streams by the Department of Natural Resources. This would have the significant impact of restricting development in these areas. The purpose of the study is to receive an unbiased determination as to whether these streams are actually trout streams. The City's share of participating in this study, to be conducted by Barr Engineering Company, would be funded through the Stormwater Utility Fund. MOTION by Cordes, second by Gamer to approve participation in the study. APIF, MOTION CARRIED. 18. Amend Ordinance - Add Variance Appeal Process Planning Coordinator Smick explained that the ordinance would provide a means of appeal for citizens whose variance requests had been denied by the Zoning Board of Adjustment. Discussion focused on the strict set of criteria which must be met in order to receive a variance, that appeals would only be heard if there was a question of fact, and the need to protect the authority of the Planning Commission (Board of Adjustment). A fee has not been established at this time. Council determined to wait approximately 6 months before doing so in order to see what effect the appeal process would have. MOTION by Fitch, second by Gamer to adopt ORDINANCE NO. 097-393 approving the variance appeal process amendment. APIF, MOTION CARRIED. 19. Roundtable Councilmember Gamer: Attended a LMC meeting which was very informative. Mayor Ristow: Thanked the residents in the audience for their participation in the meeting. Administrator Erar: Clarified that the May 27th meeting to discuss Main Street was a public hearing, not an informational meeting. 20. MOTION by Fitch, second by Gamer to adjourn at 8:57 P.M.. APIF, MOTION CARRIED. Respectfully submitted, Mary Hanson Clerk/Typist TO: Mayor, Councilmembers City Administrator)j4:/' I FROM: James Bell, Parks and Recreation Director SUBJECT: Approve Resolution Accepting Donation From Dakota Electric DATE: April 21, 1997 INTRODUCTION Council approval of a resolution accepting donation. DISCUSSION Dakota Electric annually donates a tree in conjunction with Arbor Day to the Cities in their service area. Denise Rotty of their office has notified staff that the company would again like to donate a tree to the City. Staff will plant this tree as part of the annual Arbor Day activities. ACTION REQUESTED Pass a resolution accepting the donation of a tree from Dakota Electric. Respectfully submitted, ,J.. _ .-J c:6~ James Bell Parks and Recreation Director 5b CitlJ. of FarminiJ.ton 325 Oak Street · Farmin9tDnl MN 55021., · (612) 1.,63-7111 · Fait (612) 1.,63-2591 PRO P 0 SED RESOLUTION ACCEPTING DONATION OF RED MAPLE TREE Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota, was held in the Civic Center of said City on the 21st day of April, 1997 at 7:00 P.M.. Members Present: Members Absent: Member introduced and Member seconded the following: WHEREAS, Dakota Electric Association has proposed to donate a balled and burlapped red maple tree with an estimated value of $100.00; and WHEREAS, said red maple tree is being donated in recognition of Arbor Day in the City of Farmington and is to be planted in Rambling River Park; and WHEREAS, it is in the best interest of the City to accept such a generous donation. NOW, THEREFORE, BE IT RESOLVED that the City of Farmington hereby accepts the donation of a red maple tree from Dakota Electric Association. This resolution adopted by recorded vote of the Farmington City Council in open session on the 21st day of April, 1997. Mayor Attested to the ___ day of April, 1997. City Administrator SEAL d2 5c TO: Mayor, Coumcilmembers City Administrator~ James Bell, Parks and Recreation Director FROM: SUBJECT: Proclaim Arbor Day and Month DATE: April 21, 1997 INTRODUCTION The annual Arbor Day activities is scheduled for Friday, April 25, 1997. DISCUSSION The City is a Tree City USA designated community. To continue with this designation, the Council must proclaim an annual Arbor Day Celebration. Staff has scheduled April 25, 1997 at 10:00 A.M. as the City's annual celebration. The ceremony will take place at Rambling River Park. The school will have students at the ceremony to help plant the trees. The Council is invited to participate by reading the proclamation and giving the students a few words of encouragement. BUDGET IMPACT The dollars for the trees and refreshments is budgeted in the tree budget. ACTION REOUESTED Proclaim May as Arbor month and Friday, April 25, 1997 as Arbor Day in Farmington. Respectfully submitted, ,J_ ~ <Q;.~ JromesBcll - Parks and Recreation Director I CitlJ. of FarminiJ.ton 325 Oak Street. Farminljton, MN 55024 · (612) 463.7111 · FaJr (612) 463.2591 PROCLAMATION WHEREAS, Minnesota's forests have historically been a significant attraction because of their usefulness and their beauty; and WHEREAS, Trees are an increasingly vital resource in Minnesota today, enriching our lives by purifying the air; conserving soil, water and energy; creating jobs through a large forest products industry; serving as recreational settings; providing habitat for wildlife of all kinds; and creating beautiful landscapes to make our communities more livable; and WHEREAS, Human activities such as construction damage, pollution, and neglect, as well as climatic extremes, disease and insects threaten our trees, creating the need for concerted action to ensure the future of Farmington's and rural forests in our County, State and Nation; and WHEREAS, Individuals can act locally to improve the environment by planting trees and ensuring that these trees are protected and receive proper care and maintenance in the years ahead; and WHEREAS, Each year the last Friday in April is set aside as Arbor Day, and the month of May is set aside as Arbor Month, and all residents of Farmington are requested to pay special tribute to the vital natural resource that our trees represent and dedicate themselves to the continued health of our community's trees and wooded areas. THEREFORE, BE IT RESOLVED that the honorable Mayor Gerald Ristow and the Council of the City of Farmington declare Apri/25, 1997 as "Arbor Day" in the City of Farmington, and May, 1997 as "Arbor Month" in the City of Farmington. IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the City of Farmington to be affixed this 21 st day of April, 1997. Mayor Gerald Ristow Date 5d TO: Ma)'or, Councilmembers City Administrator FROM: James Bell, Parks and Recreation Director SUBJECT: Adopt Resolution Accepting Bids and Awarding Contract to Purchase Rapid Rail Box Replacement. DATE: April 21, 1997 INTRODUCTION Sealed bids were opened on Friday, April II for the Rapid Rail box replacement. DISCUSSION Bids were requested for a Rapid Rail box replacement. The City received one bid which was opened and reviewed by staff. The company providing a bid for this equipment is as follows: I. MacQueen Equipment $66,950 plus tax Total bid $71,301.15 The original Rapid Rail Box was purchased in 1991. At that time only two bids were received, one of which was rejected because it did not meet specifications. This specialized equipment is only available from limited suppliers. Two additional companies contacted the Solid Waste Supervisor about the upcoming purchase, however no bids were received from either of them. BUDGET IMPACT Funds were budgeted for this purchase in 1997. The difference in the budgeted amount of $67,000 and bid price of $71,301.75 is $4,301.75. These additional funds are available through savings in other areas of the approved Solid Waste Fund Budget, generated primarily from a grant which the City will receive to purchase recycling containers. RECOMMENDATION Adopt the attached resolution approving the purchase of the Rapid Rail box replacement with dollars as described above. Respectfully submitted, ,J~~J~~_ James Bell Parks and Recreation Director sldwast Citlj. of FarminiJ.ton 325 Oak Street · FarmintJton, MN 55024 · (612) 463-7111 · Fa~ (612) 463.2591 PROPOSED RESOLUTION NO. R -97 AWARDING BID TO VENDORS FOR RAPID RAIL BOX REPLACEMENT Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of F armington, Minnesota, was held in the Ci vic Center of said City on the 21 st day of April, 1997 at 7 :00 P.M.. The following members were present: The following members were absent: Member introduced and Member seconded the following resolution. WHEREAS, pursuant to properly published notice, bids were received, opened and tabulated, which complied with the advertisement; and WHEREAS, the City Council has received a recommendation from the Director of Public Works on the awards for these equipment purchases. NOW THEREFORE, BE IT RESOL YED that: 1 . The City Council hereby awards the contract for the automated side loading packer to MacQueen Equipment in the amount of$66,950.00 with trade-in plus tax (a total of$71 ,301.75). 2. The Mayor and Administrator are hereby authorized and directed to sign the appropriate contracts. This resolution adopted by recorded vote of the Farmington City Council in open session on the 21 st day of April, 1997. Mayor Attested to the day of ,1997. SEAL Clerk! Administrator 39 TO: Mayor, Council members City Administrator ~ James Bell, Parks ~d Recreation Director FROM: SUBJECT: Sign Panel Replacement on Parks and Recreation Sign DATE: April 21, 1997 INTRODUCTION The School District donated the old high school sign at the comer of Denmark Ave. And Spruce Street to . the City in 1996. DISCUSSION The old high school sign needs panel replacement. The panels should reflect the City ownership of the sign. Additional letters need to be purchased. Staff has obtained two quotations for the panels and letters. Godfrey Sign Lawrence Sign Co. $1071.90 $1491.00 BUDGET IMPACT The funds for panel replacement and letters was budgeted for $1,000 in the 1997 budget. The remaining $71.90 for this purchase will come from the department budget. RECOMMENDATION For information only. Respectfully submitted, J ~ n C=; " _ ...J c:-..r:::::. ~~~__ " o.r--,_"- . James Bell Parks and Recreation Director signhs 5e.. '\ CitlJ. of FarminiJ.ton 325 Oak Street · Farmington, MN 5502~ · (612) ~63. 7111 · Fax (612) ~63.2591 Sf TO: Mayor and Councilmembers FROM: John F. Erar, City Administrator SUBJECT: Appointment Recommendation City Engineer DATE: April 21, 1997 INTRODUCTION . As Council is aware, the engineering firm of Boonestroo, Rosene, Anderlik and Associates has been fulfilling the role of City Engineer and Assistant City Engineer over the last several months. Mr. Lee Mann has been serving in the role of Interim Assistant City Engineer, and has essentially been managing the City's Engineering Division, overseeing pending projects and working with private development projects. Mr. Mann's performance in this capacity has been commendable. DISCUSSION Accordingly, after a thorough review of staffmg alternatives relative to replacing both these engineering positions, I am recommending that these positions be filled by Mr. Lee Mann as City Engineer, supplemented by other consulting staff under a contract outsourcing agreement. Mr. Mann is a registered civil engineer, and has worked on numerous municipal engineering projects over the last six years. Lee's performance over the last several months has proven to be of tremendous benefit to the City in resolving a number of outstanding engineering project management issues. Under this agreement, Mr. Mann would serve as the City Engineer as a member of the City's management team, and oversee the City's Engineering Division, and Public Works\Utilities Division. Mr. Mann would have the same responsibilities as a regular full-time Department Head, with normal management oversight and supervisory responsibilities, and would as any other department director report to the City Administrator. Mr. Glenn Cook would continue to serve as principal engineering consultant. Should this arrangement not fulfill the City's needs over time, a thirty (30) day notice would terminate this relationship, and the City would be free to fill the existing positions without any further commitments. Other communities such as Apple Valley, Cottage Grove, New Hope, Orono have similar engineering arrangements wherein they are able to utilize the vast resources of a consulting firm, without any legally binding entanglements. CitlJ of Farmint).ton 325 Oak Street · Farmint}tonl MN 55024 · (612) 463.7111 · Fax (612) 463.2591 Mayor and Councilmembers Appointment Recommendation - City Engineer Page 2 BUDGET IMP ACT The cost of this arrangement is well within the regular budgeted salaries for these two positions, and has been negotiated at a fixed rate of $7,000 per month. Accordingly, all general engineering time, regardless of hours worked, will be at this set rate. An analysis of the hours spent on engineering and supervision of public works activities makes this an exceptionally good value for the City. With respect to private and public engineering projects fees, the City will experience no increase in costs as engineering fees are charged directly against respective projects. Council, however, should be aware that in past years, project administration and engineering fees which were generated by staff will more than likely be charged out to Boonestroo as needed and will minimize generated project income. As Council will recall, the 1996 Budget experienced a significant shortfall due to the fact that a number of public projects were never brought forward on time, with a resulting loss in City revenues. In review of past years, this type of income was not accurately reported in financial statements suggesting a somewhat inflated level of project income.O In light of the tremendous growth in the City and the need to provide competent, responsive and quality engineering services, the generation of income (retained earnings) from projects should be viewed as secondary at this time. It is my belief that the City's primary mission, as a public entity, should be to provide engineering services in as cost-effective, process efficient manner as possible. RECOMMENDA nON Approve the appointment of Mr. Lee Mann as City Engineer under a contract agreement with the firm of Boonestroo, Rosene, Anderlik and Associates effective May 16, 1997. ReSpeCtfu~b:ed, ~. /'1 ohn F. Erar City Administrator TO: Mayor and City C~ City Administrato/, Robin Roland, Finance Director FROM: SUBJECT: Final 1997 Budget Document DATE: April 21, 1997 The City of Farmington adopted its 1997 budget on December 16, 1996, and certified it to Dakota County and the State of Minnesota on December 27, 1997. The 1997 Budget Document was recently finalized and submitted to the National Government Finance Officers Association for their .. consideration. A copy of this final document will be provided to each council member at the meeting on April 21, 1997. DISCUSSION As stated in the Budget message, the Adopted 1997 Budget includes an increase in the property tax rate from 34.769 in 1996 to 34.903 percent in 1997. This one one thousandth of a percent increase resulted from a final Adjusted Tax Capacity Value decrease of $17,108 from the value provided by the County to the City for its computations. (To compute the levy rate provided to Council for the budget adoption process, the City relies on the best numbers available at the time the Budget document is prepared. The County tax capacity valuation figures may change without notice. ) This very slight increase should have no real effect on individual property owners. The total Tax Capacity Rate for Farmington (including city, county and school district) for 1997 is 1.24411 as compared to the 1996 rate of 1.31735, a total decrease of 7.324 percent. ACTION REQUIRED For information only. Respectfully submitted, Robin Roland Finance Director 5J Citv. of FarminlJ.ton 325 Oak Street · FarminlJton, MN 55024 · (612) 463-7111 · Fa~ (612) 463.2591 5h TO: FROM: Mayor and City COa City Administrator /' Robin Roland, Finance Director SUBJECT: Approval of 1997-2001 CIP DATE: April 21 , 1997 At the Council workshop of April 16, 1997, Council reviewed proposed capital improvement projects for Parks and Recreation and Consolidated Department Projects. DISCUSSION As discussed with Council, the following projects have been proposed in the 1997 Parks & Recreation Capital Improvement Plan: Arena Team Rooms Estimated Project Cost: $150,000 Issues: Partially funded by Mighty Ducks grant money. Balance of funding through the Park Improvement Fund. Swimming Pool Filtration/ADA Accessibility Estimated Project Cost: $118,500 Issues: Funded as part of the 1997 General Fund Budget Capital outlay. Additional funding through CDBG and Park Improvement Fund. Playground Upgrades Estimated Project Cost: $33,000 Issues: Replacement of playground equipment and ADA accessibility issues in the following playground locations as recommended by the Park & Recreation Commission: Rambling River, and Hill Dee parks. Funding through CDBG and Park Improvement Fund. City Hall Roof Estimated Project Cost: $30,000 Issues: Funded as part of the 1997 General Fund Budget Capital outlay. Idea School Entrance Estimated Project Cost: $4,000 Issues: Funded as part of the 1997 General Fund Budget Capital outlay. Completed. Rambling River Park Shelter Floor Repair Estimated Project Cost: $5,200 Issues: Funded by CDBG for ADA Accessibility. Arena Handicap Viewing Area Estimated Project Cost: $15,000 Issues: Funded by CDBG for ADA Accessibility. Citl) of FarminlJ.ton 325 Oak Street · FarmintJton, MN 55024 · (612) 463.7111 · FaIr (612) 463-2591 Senior Center Power Door Estimated Project Cost: $2,500 Issues: Funded by CDSG for ADA Accessibility BUDGET IMPACT As discussed at the workshop, funding sources are available for all 1997 projects listed above. Specific financial information will be available during the feasibility study phase of each project. ACTION REQUIRED The CIP is a strategic planning document. As discussed before, it provides for general capital improvement planning for the City. All projects progress through the CIP Project Development . and Process Authorization Schedule for Council review and approval. Should Council decide at any point in the review and approval process that a project is not to be completed, the project may be deferred to another time or eliminated as Council may direct. Approval by the City Council of the 1997-2001 Capital Improvement Plan - Consolidated Department Projects and Parks and Recreation is requested. ;r;;;-/ Robin Roland Finance Director TO: Mayor and City Council City Administrator ~ Robin Roland, Finance Director . FROM: SUBJECT: Repair to Public Works Garage DATE: April 21, 1997 INTRODUCTION On January 5, 1997, the garage door at the City Public Works facility was damaged by a plow. Repairs to the facility must now be completed. DISCUSSION The City has received compensation for this repair from its insurance coverage. Bids on the work were received from two contractors and both were reviewed by the insurance adjuster. The low bid was from A&B Cement Construction at $5,145. Repair to the garage will be completed by month end. BUDGET IMPACT The insurance proceeds of $5,323.70 (including $500 deductible) were received on March 18, 1997. ACTION REQUIRED For information only. M:;' Robin Roland Finance Director 5' CitlJ. of Farmint)ton 325 Oak Street · Farmington, MN 55024 · (612) 463-7111 · FaJr (612) 463-2591 COUNCIL REGISTER Council Meeting of 4/21/97 VENDOR ADOBE SYSTEMS INC <*> AIRTOUCH CELLULAR <*> AL'S LOCK AND KEY <*> AMERICAN ASSOCIATION OF RETIRE <*> ARCHER PETROLEUM <*> AT&T WIRELESS SERVICES <*> Albinson <*> B & S INDUSTRIES INC <*> BATTERY NETWORK INC <*> BECKER ARENA PRODUCTS <*> BLAHA'S COLLISION CENTER <*> BLUE CROSS & BLUE SHIELD OF MN <*> BRAD RAGAN INC <*> BT OFFICE PRODUCTS INTERNATION <*> BURNSVILLE SANITARY COMPANY <*> CAMAS <*> CANNON WELDING AND MANUFACTURI <*> CAP AGENCY <*> CHAPIN CONSTRUCTION BULLETIN I <*> CITY OF FARMINGTON - SELECT AC <*> ACTIVITY MIS ADMINISTRATIO~; BUILDING INSP~CT BUILDING MAIN":' FIRE SERVICES PARK MAINT RECREATION PRJGR SOLID WASTE IDEA SCHOOL PATROL SERVIC~S STREET MAINT Senior Center SOLID WASTE ENGINEERING S~V LIBRARY SERVICES SEWER OPEATIONS STREET MAINT WATER UTILITY G. I .S. PATROL SERVICES PATROL SERVICES ICE ARENA SNOW REMOVAL GENERAL FUND SNOW REMOVAL ADMINISTRATION BUILDING INSPECT SOLID WASTE SNOW REMOVAL PARK MAINT SENIOR CITIZEN ENGINEERING SERV SOLID WASTE STREET MAINT GENERAL FUND 17-APR-1997 (12:16) DESCRIPTION PAGEMAKER SOFTWARE UPGRADE JOHN ERAR CELLULAR P CELLULAR PHONE - KAREN F. CELLULAR PHONE-DWIGHT BJERKE CELLULAR PHONE CELLULAR PHONE-DON HAYES PARK & REC CELLULAR CELLULAR PHONE - BEN KLOTZ PARTS/SUPPLIES SERVICES PARTS MEMBER DUES OIL PAGER SERVICE PAGER SERVICE-JIM BELL PAGER SERVICE PAGER SERVICE PAGER SERVICE 12X50YD. SK. PAPER-WHITE FACE SHIELD NICKEL CADMIUM BATTERY SUPPLIES/SERVICES REFINISH RED FOIL MEDICAL INSURANCE PREMIUMS MAY TIRE PURCHASE/MOUNT SUPPLIES SPECIAL ORDER STAMP DUMPING FEES CLASS 5 KEY WELDING ON SNOWBLOWER/TRAILER SENIOR CENTER OFFICIAL AD - LARCH ST ACCESS BID - GARBAGE TRUCK BID - LOADER W/PLOW 4/11 PAYROLL CHECK AMOUNT CK-SUBSYS 103.64 103.64* 65.74 24.91 6.50 38.17 14.53 11.70 39.00 200.55* 350.63 255.44 39.59 645.66* 256.00 256.00* 183.90 183.90* 8.52 7.40 2.13 4.26 2.13 24.44* 13.01 13 .01* 59.80 59.80* 131. 81 131.81* 425.00 425.00* 125.00 125.00* 18,378.62 18,378.62* 691. 91 691.91* 659.70 31. 90 691.60* 5,521.25 5,521.25* 247.21 247.21* 293.55 293.55* 57.48 57.48* 238.00 176.40 182.00 596.40* 1,182.39 1,182.39* OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH COUNCIL REGISTER VENDOR ACTIVITY 17-APR-1997 (12:16) DESCRIPTION CHECK AMOUNT CK-SUBSYS <*> ----------------------------------------------------------------------------------------------------------------- CLAREYS SAFETY EQUIPMENT INC OMI Incorporated <*> COCA-COLA ENTERPRISES <*> COMM CENTER <*> CRAGUN'S CONFERENCE CENTER <*> CY'S Uniforms <*> DAIRY QUEEN INC <*> DAKOTA COUNTY ENVIRONMENTAL MG <*> DAKOTA COUNTY FINANCIAL SERVIC <*> DAKOTA COUNTY RECORDER <*> DAKOTA COUNTY TREASURER <*> DAKOTA ELECTRIC ASSOCIATION <*> DANKO EMERGENCY EQUIPMENT CO <*> DAY DISTRIBUTING CO <*> DENNIS DAHMES CONSTRUCTION <*> DUEBERS DEPT STORE <*> Dakota County Lumber Company <*> ELECTRO WATCHMAN INC. <*> ELLINGSWORTH, BOB <*> FARMINGTON BAKERY <*> FARMINGTON EMPLOYEE CLUB <*> FARMINGTON INDEPENDENT FIRE SERVICES COMMUNICATIONS SEWER OPEATIONS SOLID WASTE WATER UTILITY LIQUOR SOLID WASTE STREET MAINT ADMINISTRATION FIRE SERVICES PATROL SERVICES Senior Center SOLID WASTE GENERAL FUND PLANNING/ZONING ENGINEERING SERV FIRE SERVICES LIQUOR SEWER OPEATIONS STREET MAINT WATER UTILITY FIRE SERVICES LIQUOR LIQUOR PILOT KNB ICE ARENA POLICE ADMIN SENIOR CITIZEN BUILDING MAINT PARK MAINT LIQUOR FIRE SERVICES BOARDS & COMM GENERAL FUND ADMINISTRATION SUPPLIES/PARTS NEWSLETTER UTILITY BILLING UTILITY BILLING UTILITY BILLING SODA POP INSTALL MIC & ANTENN INSTALL MIC & ANTENN CONFERENCE HOUSING RESERVATION UNIFORM SHIRT UNIFORMS SENIOR CENTER OUTING REGIONAL MSW HAULER LICENSE AAMOT CHILD SUPPORT FEBRUARY ABSTRACT CH C.P. 31-31 PRELIM. ENGINEERING DENMARK AVE 18320 PILOT KNOB RD 220TH ST W 3360 220TH ST W PILOT KNOB ROAD PIGSKIN GLOVES LIQUOR FLOORING-REMODEL JOB POSTERBOARD NOTEBOOKS CANDY CREDIT BALANCE ON ACCOUNT PICNIC TABLES REMODEL MATERIALS & LABOR DULUTH FIRE SCHOOL L COUNCIL LUNCHES EMP CLUB DUES 4/11 PAYROLL ORD. NO. 097-390 102.75 102.75* 594.56 294.72 294.72 294.73 1,478.73* 297.20 297.20* 153.41 153.41 306.82* 298.75 298.75* 36.75 46.95 83.70* 26.00 26.00* 250.00 250.00* 302.00 302.00* 546.00 546.00* 1,019.29 1,019.29* 505.26 302.46 118.38 121. 96 1,422.09 2,470.15* 384.83 384.83* 356.00 356.00* 422.50 422.50* 8.80 9.26 5.4l 23.47* 40.05 102.42 142.47* 1,515.39 1,515.39* 337.68 337.68* 84.00 84.00* 41.00 41.00* 27.00 OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH / , OH OH COUNCIL REGISTER VENDOR FARMINGTON INDEPENDENT <*> FARMINGTON PRINTING INC <*> FEDERAL EXPRESS <*> FEDERAL RESERVE BANK <*> FERRELL GAS PRODUCTS CO <*> FIRST NATIONAL BANK OF FARMING <*> FRANKLIN QUEST <*> FRITZ COMPANY INC <*> FRONTIER COMMUNICATIONS <*> FRONTIER COMMUNICATIONS SERVIC <*> FRONTLINE PLUS FIRE & RESQUE <*> GARY'S RADIATOR REPAIR <*> GATEWAY 2000 <*> GENERAL OFFICE PRODUCTS COMPAN <*> GENZ-RYAN <*> GOLD STAR PRINTING INC <*> GOVERNMENT FINANCE OFFICERS AS <*> GOVERNMENT TRAINING SERVICE <*> GREEN MILL <*> GRIGGS COOPER & CO <*> GROSSMAN CHEVROLET COMPANY INC <*> Gartner Refrigeration & MFG In <*> HARBEE'S OAK STREET GALLERY <*> HOHENSTEINS INC ACTIVITY FIRE SERVICES ENGINEERING SERV ICE ARENA WATER UTILITY GENERAL FUND ICE ARENA GEN ACCOUNTING GENERAL FUND ADMINISTRATION LIQUOR ADMINISTRATION HRA/ECONOMIC DEV ICE ARENA LIQUOR SEWER OPEATIONS SOLID WASTE WATER UTILITY ADMINISTRATION FIRE SERVICES SNOW REMOVAL HRA/ECONOMIC DEV ADMINISTRATION FIRE SERVICES PATROL SERVICES GEN ACCOUNTING ADMINISTRATION Senior Center LIQUOR ENGINEERING SERV ICE ARENA INVESTIGATION LIQUOR 17-APR-1997 (12:16) DESCRIPTION DISPLAY AD 2 RMS 20# GREEN PAPER ICE SHOW PROGRAMS FED EX TO ROBERT SHIRLEY @ AZ SAVINGS BOND 4/11 PAYROLL SUPPLIES SAFETY DEPOSIT BOX #172 FED/ST/FICA 4/11 4 X 6 SEASONS RENEWAL TIOLET TISSUE - RETURN PHONE CHARGES PHONE CHARGES PHONE CHARGES PHONE CHARGES PHONE CHARGES PHONE CHARGES PHONE CHARGES PHONE CHARGES PARTS/SUPPLIES PARTS PENTIUM COMPUTER SYSTEM WORKSURFACE PACKAGE REPAIRS WARNING CITATIONS FEE + DIST. BUDGET AWARD '97 MCMA/MACA ANNUAL CONFERENC DINNER-PLAYHOUSE OUTING RETURN CHEV 4X4 EXT CAB PICKUP TRUCK PARTS/SERVICES SHOES-JERRY WACKER BEER CHECK AMOUNT CK-SUBSYS 75.00 102.00* 14.38 211.40 225.78* 45.90 45.90* 25.00 25.00* 118.63 118.63* 15.00 18,806.52 18,821.52* 27.64 27.64* 1,592.49 1,592.49* 1,846.45 28.96 28.96 302.71 253.91 28.96 40.09 2,530.04* 109.25 109.25* 616.98 616.98* 191.70 191.70* 1,655.00 1,655.00* 1,673.84 1,673.84* 289.70 289.70* 181. 05 181.05* 150.00 150.00* 160.00 160.00* 199.00 199.00* 3,355.20 3,355.20* 20,965.44 20,965.44* 79.80 79.80* 65.00 65.00* 2,877.25 OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OR OH OH ,.... OH OH COUNCIL REGISTER VENDOR ACTIVITY 17-APR-1997 (12:16) DESCRIPTION CHECK AMOUNT CK-SUBSY: <*> ----------------------------------------------------------------------------------------------------------------- HYDRO SUPPLY CO <*> ICMA RETIREMENT TRUST-457 <*> INTERSTATE BATTERY SYSTEMS <*> JIRIK SOD FARMS INC <*> JOHNSON BROTHERS LIQUOR COMPAN <*> JORDAN BEVERAGE INC <*> KELLY ELECTRIC INC <*> KREMER SPRING & ALIGNMENT <*> KUEHN, KEVIN <*> LAKEVILLE PUBLISHING <*> LAKEVILLE SENIOR CENTER <*> LAKEVILLE TROPHY COMPANY <*> LARSON, LENA <*> LAW ENFORCEMENT LABOR SERVICES <*> LUNDAHL, TIM <*> MACQUEEN EQUIPMENT <*> MARK VII DISTRIBUTORS INC <*> MARSCHALL LINE INC <*> METROPOLITAN AREA MANAGEMENT A <*> METROPOLITAN COUNCIL-SAC <*> MINNESOTA AFSCME COUNCIL #14 <*> MINNESOTA DEPARTMENT OF REVENU <*> MINNESOTA STATE TREASURER <*> MORE FOUR WATER UTILITY GENERAL FUND SOLID WASTE STREET M;o.INT LIQUOR LIQUOR STREET MAINT STREET MAINT FIRE SERVICES ICE ARENA PARK MAINT Senior Center Senior Center ENGINEERING S~V SOLID WASTE GENERAL FUND Recreation Prcg SNOW REMOVAL SOLID WASTE STREET MAINT LIQUOR Recreation prcg ADMINISTRATION SEWER OPERATIONS GENERAL FUND ICE ARENA OPER LIQUOR STORE SOLID WASTE WATER UTILITY BUILDING INSPECT BUILDING INSPECT PARTS/SUPPLIES DEF COMP 4/11 PAYROLL BATTERIES SOD LIQUOR BEER REPAIR LGHTS @ CITY GARAGE PARTS/SUPPLIES DULUTH FIRE SCHOOL EXP REIMB PART TIME ARENA CUST. AD SKID LOADER BIDS AD TRIP TO DAYTON'S FLOWER SHOW TROPHIES MILEAGE MILEAGE LAW ENFORCE UNION DUES 4/11 BIRD HOUSE BUILDING CLASS ROD END PARTS/SUPPLIES BEARING TAKE UP PO#6707 BEER TRANSPORTATION - WELCH TRIP ANNUAL DUES M.A.M.A. MARCH SAC CHARGES UNION DUES 4/11 PAYROLL MARCH SALES TAX MARCH SALES TAX MARCH SALES TAX MARCH SALES TAX BLDG PERMIT SURCHARGE REPORT FILM 2,877.25* 121.35 121.35* 2,793.90 2,793.90* 151.12 151.12* 69.64 69.64* 3,496.34 3,496.34* 1,196.30 1,196.30* 81.45 81.45* 216.20 216.20* 368.16 368.16* 58.20 62.88 121.08* 39.00 39.00* 25.56 25.56* 6.20 5.58 11. 78* 165.00 165.00* 48.00 48.00* 53.37 242.73 379.51 675.61* 5,695.57 5,695.57* 129.00 129.00* 57.00 57.00* 24,453.00 24,453.00* 331.01 331.01* 1,130.00 9,658.00 526.00 603.00 11,917.00* 2,311. 76 2,311. 76* 6.91 '-'., OH OH OH OH OH OH OH OH OH OH OH c ',~ ."0 . OH OH OH OH OH OH OH OH OH OH OH OH OH H "IJrt OH COUNCIL REGISTER VENDOR ACTIVITY 17-APR-1997 (12:16) DESCRIPTION CHECK AMOUNT CK-SUBSYS -------------------------------------------------------------------------------------------------------------------- Lou MORE FOUR <*> MOTOR PARTS SERVICE CO INC <*> MURPHY, JAMES <*> NAPA <*> NORTHERN STATES POWER COMPANY <*> NORTHLAND CHEMICAL CORP <*> NORTHSTAR REPRO PRODUCTS INC <*> NRG ENERGY INC <*> OFFICE MAX <*> OPM INFORMATION SYSTEMS <*> PARKER, BRADLEY <*> PELLICCI HARDWARE & PAINT FIRE SERVICES POLICE ADMIN SENIOR CITIZE}1 Senior Center BUILDING MAIm' PARK MAINT PATROL SERVICES SOLID WASTE PATROL SERVICES FIRE SERVICES FLEET MAINT SERV ICE ARENA PARK MAINT PATROL SERVIC:::S SNOW REMOVAL SOLID WASTE STREET MAINT BUILDING MAINT EMERG MGMT SERV HRA/ECONOMIC DEV ICE ARENA IDEA SCHOOL LIQUOR PARK MAINT SENIOR CITIZEN SEWER OPEATIONS SIGNAL MAINT STREET MAINT WATER UTILITY STREET MAINT G.I.S. SOLID WASTE ADMINISTRATION GEN ACCOUNTING FIRE SERVICES BUILDING MAINT ICE ARENA IDEA SCHOOL LIBRARY SERVICES MIS PARK MAINT SENIOR CITIZEN SNOW REMOVAL SOLID WASTE PHOTO'S FILM/BATTERIES GROCERIES MISC - PANCAKE BREAKFAST PARTS/SUPPLIES PARTS PARTS PARTS TUITION REIMBURSEMENT PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS CITY HALL CIVIL DEFENSE SIREN 142 ELM ST 114 SPRUCE ST 200 SPRUCE STREET 305 3RD ST 120 ELM ST 431 3RD ST 1104 SUNNYSIDE DR-PUMP STATION 299 AKIN ROAD 710 1ST ST-VILLAGE GARAGE WELL #1 SUPPLIES 24X50YDS 24# INK JET COLOR BON MARCH TIP FEES SUPPLIES PO#6750 SERVICE-HP LJ5P PRINTER DULUTH FIRE SCHOOL EXP REIMB PARTS/SUPPLIES PARTS/SUPPLIES PARTS DUST MOP REFILL OUTLET STRIP PICNIC TABLE RESTORATION SUPPLIES PARTS PARTS/SUPPLIES 8.60 27.22 40.65 158.77 242.15* 2.97 9.58 115.70 66.24 194.49* 110.34 110.34* 38.63 227.02 3.02 9.05 77.93 90.06 62.80 513.35 1,021. 86* 993.10 6.28 38.30 2,778.54 990.77 283.08 140.10 122.42 224.12 25.52 187.15 1,978.34 7,767.72* 63.77 63.77* 48.01 48.01* 928.65 928.65* 200.10 200.10* 110.00 110.00* 371. 73 371.73* 73.97 28.99 2.30 39.52 13.30 413.80 29.30 4.69 8.80 OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH OH ("1'-1 V1'1 OH OH COUNCIL REGISTER VENDOR <*> PEOPLES NATURAL GAS <*> PEPSI COLA COMPANY <*> PHILLIPS WINE AND SPIRITS INC . <*> PLYMOUTH PLAYHOUSE <*> POLFUS IMPLEMENT AT ROSEMOUNT <*> PROMPT MEDICAL CLINIC <*> PUBLIC EMPLOYEES RETIREMENT AS <*> PUBLISHER'S TOOLBOX INC <*> REX ELECTRIC CORPORATION <*> RON'S GOURMET ICE <*> ROSEMOUNT, CITY OF <*> SIGN SOLUTIONS INC <*> SILENT KNIGHT SECURITY SYSTEMS <*> SILVER SHIELD <*> SKB <*> SOUTH SUBURBAN MEDICAL CLINIC <*> SPEIlCER, MARILYN <*> SPEIKER, PAUL M <*> ST CROIX COUNTY <*> STANEK, JEANNE <*> STARR AUTOMOTIVE <*> STATE CAPITOL CREDIT UNION ACTIVITY BUILDING MAIN:' FIRE SERVICES LIBRARY SERVICES LIQUOR PARK MAINT SENIOR CITIZ~l SOLID WASTE STREET MAINT SWIMMING POOL WATER UTILITY LIQUOR LIQUOR Senior Center PARK MAINT PERSONNEL GENERAL FUND RECREATION PROGR ICE ARENA LIQUOR Recreation prog CITY HALL REM IDEA SCHOOL LIBRARY SERVICES ENGINEERING SERV SOLID WASTE PERSONNEL POLICE ADMIN BUILDING MAINT SOLID WASTE GENERAL FUND ADMINISTRATION FIRE SERVICES GENERAL FUND 17-APR-1997 (12: 16) DESCRIPTION 321 OAK STREET 21625 DENMARK AVE 508 3RD ST 305 3RD STREET 617 6th STREET 431 3RD ST 3360 220TH ST W #2 706 1ST ST 625 HERITAGE WAY 311 1/2 OAK ST SODA POP LIQUOR RETURN PLYMOUTH PLAYHOUSE TICKETS PARTS DRUG SCREEN/SMICK PAYROLL 4/11 MASTERCLIPS REPAIRS ICE SPRING FLING CITY SEAL WALL PLAQUE QTRLY MONIT.-LIBRARY RENTAL SP QTRLY MONIT.-DAKOTA CTY LIBRAR PICK UP BOX ORGANIZER DUMPING FEES DRUG SCREENING LEE HOLLATZ MED. EXAM KICKDOWN DOOR STOPS REIMB FOR WORK BOOTS SCHULTZ CHILD SUPPORT 4/11 MILEAGE - COMPUTER CLASS OIL CHANGE 4/11 PAYROLL CHECK AMOUNT CK-M~SYS 614.67* 846.97 421. 85 582.92 175.92 40.80 158.24 222.89 528.94 12.78 33.15 3,024.46* 327.85 327.85* 2,515.33 2,515.33* 149.30 149.30* 90.37 90.37* 18.00 18.00* 7,777.33 7,777.33* 84.90 84.90* 49.71 49.71* 187.77 187.77* 77.70 77.70* 996.08 996.08* 79.88 191. 70 271.58* 1,165.73 1,165.73* 78.50 78.50* 100.00 19.00 119.00* 18.32 18.32* 75.00 75.00* 146.05 146.05* 5.58 5.58* 24.97 24.97* 1,316.33 OR OH OH OH OH OH OR OR OH OH OH OH OH OH OH OH i.~ _ OH OR OH OH OH OH OH OH OH OH OH OH OH OH COUNCIL REGISTER VENDOR <*> STATE MECHANICAL INC <*> STEICHEN'S <*> STREICHER'S <*> SWEDIN, ROSEMARY <*> UNIFORMS UNLIMITED <*> UNITED STATES FIGURE SKATING A <*> UNITED WAY FUND OF ST. PAUL AR <*> UNITOG <*> US WEST COMMUNICATIONS <*> VERCH, TERRY <*> VERMILLION RIVER WATERSHED MAN <*> VOSON PLUMBING C/O SALLY KING <*> W W GRAINGER INC <*> WACKER, JEROME <*> ZARNOTH BRUSH WORKS INC <*> ZIEGLER INC <*> Approved: Ristow Cordes Fitch Gamer Strachan ACTIVITY WATER UTILITY Recreation prog INVESTIGATION GEN ACCOUNTING PATROL SERVICES ICE ARENA GENERAL FUND SOLID WASTE STREET MAINT GEN ACCOUNTING FIRE SERVICES STORM WATER UTIL GENERAL FUND LIQUOR INVESTIGATION STREET MAINT SNOW REMOVAL 17-APR-1997 (12:16) DESCRIPTION WATER METER INSTALLATION SOFTBALLS SNOWPRINT WAX MILEAGE UNIFORMS USFSA ASSESSMENT FEE 4/11 PAYROLL UNIFORMS UNIFORMS PHONE CHARGES DULUTH FIRE SCHOOL L VERMILLION RIVER WMO REFUND CURB BREAKING PERMIT FILAMENT TAPE 3/4" INVESTIGATORS CLOTHING PARTS/SUPPLIES PARTS CHECK AMOUNT CK-SUBSYS 1,316.33* 100.00 100.00* 906.23 906.23* 16.99 16.99* 10.85 10.85* 14.59 14.59* 23.65 23.65* 29.00 29.00* 59.78 139.52 199.30* 459.73 459.73* 344.19 344.19* 2,811.40 2,811.40* 200.00 200.00* 79.17 79.17* 36.48 36.48* 736.45 736.45* 92.43 92.43* 187,104.80* 011 OH OH OH OH OH OH OH OH OH OH OH OH ,- i-_ OH OH OH <*> & TO: Mayor and Councilmembers FROM: John F. Erar, City Administrator SUBJECT: Public Hearing for TIP District # 13 DATE: April 21, 1997 INTRODUCTION The creation of a Renewal and Renovation District to assist the Eagles Club in the acquisition of a site for the construction of their new facility requires that Council hold a public hearing to facilitate the use of tax increment financing pursuant to state law. In addition, the adoption of a tax increment financing plan is also necessary to formally articulate the parameters of the financial plan which will be utilized in this project. DISCUSSION Mr. Thomas Truszinski, City financial advisor from Juran & Moody, will be present to review the project plan and financial particulars underwriting the assistance to the Eagles Club. BUDGET IMPACT As indicated earlier, the use of tax increment financing may result in a local government penalty to the City. However, in light of the fact, that this district will be closed once adequate increment is generated equivalent to the commitment made by the HRA, the penalty, as presented, is relatively minimal. This information will be formally presented to Council at the April 21, 1997 meeting. ACTION REOUESTED 1) Open the Public Hearing for the purpose of receiving comments relative to the establishment of Tax Increment Financing District No. 13 for the purpose of assisting the Eagles Club in site acquisition. The level of financial assistance committed to by the Farmington HRA was in an amount not to exceed $100,000. 2) Adopt the attached resolution authorizing the establishment of Tax Increment Financing District No. 13 and adopting a Tax Increment Financing plan related to assisting the developer (Eagles Club) in site acquisition. iiResp~ hn F. Erar ity Administrator CitlJ. of FarminlJ.ton 325 Oale Street. Farmint}tonl MN 55024 · (612) 463.7111 · Fax (612) 463.2591 CERTIFICATION OF MINUTES RELATING TO RENEWAL AND RENOVATION TAX INCREMENT FINANCING DISTRICT Issuer: City of Farmington, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting held April 21, 1997, at 7:00 o'clock P.M., at the City Hall, Farmington, Minnesota. Members present: Members absent: Documents Attached: Minutes of said meeting (including): RESOLUTION NO. A RESOLUTION APPROVING ESTABLISHMENT OF TAX INCREMENT FINANCING (RENEWAL AND RENOV A TION) DISTRICT NO. 13 AND APPROVING AND ADOPTING A TAX INCREMENT FINANCING PLAN RELATING THERETO I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the bonds referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said bonds; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this _ day of April, 1997. Administrator Councilmember introduced the following resolution and moved its adoption, which motion was seconded by Councilmember A RESOLUTION APPROVING ESTABLISHMENT OF T AX INCREMENT FINANCING (RENEvV AL AND RENOVATION) DISTRICT NO. 13 AND APPROVING AND ADOPTING A TAX INCREMENT FINANCING PLAN RELATING THERETO WHEREAS, the Housing and Redevelopment Authority of the City of Farmington, Minnesota (the "HRA"), with the approval of the City of Farmington, Minnesota (the "City"), has heretofore established the Farmington Redevelopment Project Area (the "Project Area") within the City and has approved a Redevelopment Plan for the Project Area (the "Redevelopment Plan"); WHEREAS, to carry out the Redevelopment Plan, the HRA has now prepared, approved and submitted to the City a Tax Increment Financing Plan (the "Tax Increment Plan") pursuant to Minnesota Statutes, Sections 469.174 to 469.179, for Tax Increment Financing (Renewal and Renovation) District No. 13 (the "TIF District") within the Project Area; WHEREAS, the HRA has submitted its estimate of the fiscal and economic implications of the proposed TIP District to the County Board of Commissioners and the school board of the local school district, all in accordance with the requirements of Section 469.175, subdivision 2; WHEREAS, the City Council of the City (the "Council") on the date hereof held a public hearing regarding approval of the Tax Increment Plan, for which hearing notice was published in a newspaper of general circulation in the City not less than 10 or more than 30 days prior to the date hereof, including a map of the Project Area and TIP District; WHEREAS, the City has performed all actions required bv law to be performed prior to the consideration of the Tax Increment Plan and the establishment of the TIF District. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FARMINGTON, MINNESOTA, as follows: 1. On the basis of the information presented to the Council at meetings regarding establishment of the TIF District, information included in the Tax -2- Increment Plan, information provided at the public hearing and at other Council meetings, the Council hereby finds and determines: (a) that the TIF District qualifies as an renewal and renovation district as defined in Minnesota Statutes, Section 469.174, Subd. lOa; (b) that the Tax Increment Plan conforms to the general plan for the development or redevelopment of the City as a whole; (c) that the Tax Increment Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Project Area by private enterprise; (d) that the Eagles Club development proposed to be assisted as described in the Tax Increment Plan would not, in the opinion of the City, reasonably be expected to occur within the reasonably foreseeable future solely through private investment; and (e) that, based on a comparative analysis of estimated market values both with and without the establishment of the TIF District and the use of tax increment assistance, the increase in estimated market value of the development site, less the present value of the projected tax increments for the duration of the TIF District as permitted by the Tax Increment Plan, exceeds the market value of the development site expected to occur without the use of tax increment financing. The reasons and supporting evidence for the foregoing findings are set forth in Section J of the Tax Increment Plan, and Exhibits A and B thereto, which findings and exhibits are incorporated herein by reference. 2. Based upon the foregoing, Tax Increment Financing (Renewal and Renovation) District No. 13 within the Project Area is hereby established and the Tax Increment Plan is hereby approved and adopted by the City in substantially the form on file with the City on this date. 3. The City Administrator is authorized and directed to take all action on behalf of the City, subject to such approval of the Council as is required by law, to implement the Tax Increment Plan. 4. The City Administrator is authorized and directed to request the County Auditor to certify the original tax capacity value of the real property within the TIF District and the original tax capacity rate for the TIF District. ,.., -J- 5. The City Administrator is also authorized and directed to file a copy of the Tax Increment Plan with the Commissioner of Revenue, as required by Minnesota Statutes, Section 469.175, subd. 2. Upon vote being taken thereon, the following voted In favor of the foregoing resolution: and the following voted against the same: whereupon the resolution was declared duly passed and adopted. -+- Final Housing and Redevelopment Authority of the City of Farmington, Minnesota Tax Increment Financing Plan for Tax Increment Financing (Renewal and Renovation) District No. 13 Adopted by HRA: April 14, 1997 Adopted by City of Farmington: April 21, 1997 TABLE OF CONTENTS Section Page(s) A Definitions ................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 B Statutory Authorization ............................. . . . . . . . . . . 1 C Statement of Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 D Development Activities To Take Place Within Redevelopment Project. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 E Designation of Tax Increment Financing District As A Renewal and Renovation District ......................... 2 F Duration of the TIF District .................................... 3 G Property to be Included in the TIF District ....................... 3 H Property to be Acquired in the TIF District ., . . . . . . . . . . . . . . . . . . . . . 4 I Specific Development Expected to Occur Within the TIF District. . . 4 J Findings and Need for Tax Increment Financing. . . . . . . . . . . . . . . . . 4 K Estimated Public Cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 L Estimated Sources of Revenue ................................. 6 M Estimated Amount of Bonded Indebtedness. . . . . . . . . . .. . .. ... . . . 6 N Original Net Tax Capacity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 o Original Tax Capacity Rate ..................................... 7 P Projected Captured Net Tax Capacity and Projected Tax Increment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Q Use of Tax Increment. . ..... .. . .,. . ...... . .. . . ., . . . .... . . ., . . . . 8 R Excess Tax Increment. . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . 9 S Tax Increment Pooling ........................................ 9 T Limitation on Administrative Expenses. . . . . . . . . . . . . . . . . . . . . . . . . 10 U Limitation on Property Not Subject to Improvements. . . . . . . . . . . . 10 V Estimated Impact on Other Taxing Jurisdictions. . . . . . . . . . . . . . . . . . 11 W Local Government Aid Penalty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 X Prior Planned Improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Y Development Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Z Assessment Agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 AA Modifications of the Tax Increment Financing Plan .............. 12 A B Administration of the Tax Increment Financing Plan. . . . . . . . . . . .. 13 AC Financial Reporting and Disclosure Requirements. . . . . . . . . . . . . . . 13 Report of Building Official Regarding Buildings . . . . . . . . . . . . . . . . . . . . Eagles Letter re Need For Tax Increment Assistance ................ Projected Tax Increment Report .................................. Estimated Impact on Other Taxing Jurisdictions Report. . . . . . . . . . . . . LGA/HACA Penalty Calculations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EXHIBIT A EXHIBIT B EXHIBIT C EXHIBIT D EXHIBIT E Section A Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: "City" means the City of Farmington, Minnesota; also referred to as a "Municipality". "City Council" means the City Council of the City; also referred to as the "Governing Body". "County" means Dakota County, Minnesota. "Project Area" means the geographic area of the Redevelopment Project. "Redevelopment Plan" means the Redevelopment Plan, as last updated and approved, dated February 8, 1990, for the Redevelopment Project. "Redevelopment Project" means the Farmington Redevelopment Project, which is described in the corresponding Redevelopment Plan. "School District" means Independent School District No. 192, Minnesota. "State" means the State of Minnesota. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.179, both inclusive. "TIF District" means Tax Increment Financing (Renewal and Renovation) District No. 13. "TIF Plan" means the tax increment financing plan for the TIF District (this document). Section B Statutory Authorization This TIF Plan is prepared pursuant to the TIF Act, and particularly Section 469.175, subdivision 1 thereof. Section C Statement of Objectives See Section III, C of the Redevelopment Plan for the Redevelopment Project. The development to be assisted pursuant to this TIF Plan will further the specific objectives of removing substandard and blighted structures in the central business district of the City and promoting new development on the property. Section D Development Activities To Take Place Within Redevelopment Project See Section III, D and Section III, E of the Redevelopment Plan for a general description of development activities expected to take place within the Project Area. The specific activities to assisted by this TIF Plan are described below in Section I of this TIF Plan. No contracts have been entered into as of the date of this TIF Plan with respect to the specific activities to assisted by this TIF Plan. Section E Designation of Tax Increment Financing District as a Renewal and Renovation District Renewal and renovation districts are a type of tax increment financing district in which the following conditions exist and are reasonably distributed throughout the district: Parcels comprising at least 70% of the area of the district are occupied by buildings, streets, utilities, or other improvements; (ii) 20% of the buildings are structurally substandard; and (iii) 30% of the other buildings require substantial renovation or clearance to remove existing conditions such as: inadequate street layout, incompatible uses or land use relationships, overcrowding of buildings on the land, excessive dwelling unit density, obsolete buildings not suitable for improvement or conversion, or other identified hazards to the health, safety, and general well-being of the community. For districts consisting of two more noncontiguous areas, each area must individually qualify under the provisions listed above, as well as the entire area must also qualify as a whole. "Structurally substandard" is defined as buildings containing defects or deficiencies in structural elements, essential utilities and facilities, light and ventilation, fire protection (including egress), layout and condition of interior partitions, or similar factors. A building is not structurally substandard if it is in compliance with the building code applicable to a new building, or could be modified to satisfy the existing code at a cost of less than 15% of the cost of constructing a new structure of the same size and type. The Authority may find that a building is structurally substandard without an interior inspection or an independent expert appraisal, if there exists "reasonably available evidence" to support this conclusion. Such evidence may include size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs, or other similar information. -2- At least 90 percent of the tax increment derived from the TIF District must be used to finance the cost of correcting conditions that allow designation as a renewal and renovation district. These costs include acquiring properties containing structurally substandard buildings or improvements, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition of structures, clearing of land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the Authority may be included in the qualifying costs. Section F Duration of the TIF District Renewal and Renovation districts may remain in existence 15 years from the date of receipt of the first tax increment. Modifications of this plan (see Section AA) shall not generally extend this limitation. This TIF Plan assumes the Authority will receive increment through the year 2013, which is within the foregoing limitation. However, the TIF district will be decertified prior to that time if all qualifying public costs have been reimbursed to the developer of the site. The Authority shall retain all increment until such qualifying costs have been reimbursed. In addition to the foregoing, no tax increments shall be paid to the Authority from the TIF District after three years from the date of certification unless within that time period: (1) bonds have been issued in aid of the redevelopment project (except revenue bonds issued pursuant to M.s. Sections 469.152 to 469.165); (2) the Authority has acquired property within the TIF District; or (3) the Authority has constructed or caused to be constructed public improvements within the TIF District. Section G Property to be Included in the TIF District The TIF District consists of a single parcel of land located within the Project Area. The boundaries and area encompassed by the TIF District are described below: Parcel ID Number 14-77000-030- 25 -3- Generally this parcel is located at 3rd Street & Main in the City. Total square footage of the site is approximately 28,979 square feet. Section H Property to be Acquired in the TIF District The Authority may acquire and sell any or all of the property located within the TIF District; however, the Authority does not anticipate acquiring any such property directly but will assist the developer in the acquisition of the site. Section I Specific Development Expected to Occur Within the TIF District Development expected to occur within the TIF District consists of demolition/ removal of the two substandard buildings on the site (being approximately 4,059 square feet and 2,376 square feet respectively), the preparation of the site for building and the installation on the site of utility, road, landscaping, parking and sidewalk improvements. The specific private development to be assisted is the construction of an approximately 8,300 square foot club facility for the Eagles social organization. It is anticipated the club facility will be fully constructed in 1997 and be 100% assessed and on the tax rolls as of January 2, 1998 for taxes payable in 1999. At the time this document was prepared there were no signed construction contracts with regards to the above described development. Section J Findings and Need for Tax Increment Financing In establishing the TIF District, the Authority and the City make the following findings: (1) The TIF District qualifies as a Renewal and Renovation District in that: (i) the TIF District consists of a single parcel, (ii) both buildings located on the site are structurally substandard in that they are not in compliance with the building code applicable to new structures of similar type and size and cannot be modified to satisfy the building code at a cost of less than 15% of the cost of constructing new buildings of similar size and type. See Exhibit A hereto for additional supporting information. (2) The proposed development, in the opinion of the Authority and the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future, and the increased market value of the site that could reasonably be expected to occur without the use of tax increment would be less than the increase in market value estimated to result from the proposed development after -4- subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the TIF Plan; The reasons and facts supporting this finding are that the Eagles have represented to the Authority and the City that the proposed development would not be feasible without the assistance of tax . increment financing. See Exhibit B hereto, a letter from the Eagles certifying as to this finding. The present market value of the site is estimated to be approximately $42,200. After completion of the proposed development on the site the estimated market value is approximately $622,600. The increase in market value ($580,400), less the present value of the estimated tax increments to be received from TIF District for its duration ($316,576), is $263,824. This exceeds the reasonably foreseeable increase in market value without the provision of tax increment assistance (said increase being $0). (3) The TIF Plan conforms to the general plan for development or redevelopment of the City as a whole; and The reasons and facts supporting this finding are that the TIF District is properly zoned the proposed development and the proposed development has been approved by the City Planning Commission as compatible with the City's comprehensive plan. (4) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the Redevelopment Project by private enterprise. The reasons and facts supporting this finding are that the primary development within the TIF District, and within the larger Project Area, has been and will be undertaken by private enterprise, and the role of the Authority is limited to assisting private enterprise by providing financing for the initial costs of land acquisition and clearance and for the required infrastructure. Section K Estimated Public Costs The estimated public costs of the proposed development in the TIF District will not exceed $480,978 in the aggregate consisting of up to (i) $432,880 for land acquisition, clearance and demolition, site preparation and installation of -5- needed road, utility, parking, landscaping and sidewalk improvements and (ii) $48,098 for administrative expenses (see Section T below). The Authority reserves the right to adjust the foregoing amounts or incorporate additional eligible items, so long as the total estimated public costs do not exceed $480,978. The Authority anticipates that the final public costs to be paid or reimbursed, and the mechanism for payment or reimbursement, will be set forth in a development agreement to be entered into between the Authority and the developer. Section L Estimated Sources of Revenue The estimated public costs of the project to be incurred in the TIF District will be paid through the collection of tax increments derived from the TIF District. The Authority reserves the right to finance any or all public costs of the TIF District using pay-as-you-go assistance, internal funding, general obligation debt, or any other financing mechanism authorized by law. The Authority also reserves the right to use other sources of revenue legally applicable to the Redevelopment Project to pay for such costs including, but not limited to, utility revenues, federal or state funds, and investment income. The Authority expects to enter into a pay-as-you-go development agreement with the developer of the site whereby the Authority would agree to reimburse the developer for eligible public costs initially paid by the developer as increment becomes available, which reimbursement, if made over time, may include a reasonable market interest component. However, the aggregate amount of increment devoted to the payment of the eligible public costs, including any interest component, shall not exceed the limitations set forth in Section K above. Section M Estimated Amount of Bonded Indebtedness The City does not expect to issue any tax increment bonds to finance the estimated public costs of the TIF District, though it reserves the right to do so. Section N Original Net Tax Capacity The County Auditor shall certify the Original Net Tax Capacity of the TIF District, which will be the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31, inclusive, this value is based on the current assessment year. -6- The Estimated Market Value of all property within the TIF District as of January 2, 1996, for taxes payable in 1997, is $42,200. Upon establishment of the TIF District it is estimated that the Original Net Tax Capacity of the TIF District will be approximately $1,266. Section 0 Original Tax Capacity Rate The County Auditor shall also certify the Original Tax Capacity Rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the Original Net Tax Capacity. In future years, the amount of tax increment generated by the TIF District will be calculated using the lesser of (a) the sum of the current local tax rates at that time or (b) the Original Tax Capacity Rate of the TIF District. The sum of all local tax rates that apply to property in the TIF District, for taxes levied in 1996 and payable in 1997, is 124.411% as shown below. The County Auditor shall certify this amount as the Original Tax Capacity Rate of the TIF District. Taxing Turisdiction 1996/1997 Local Tax Rate City of Farmington Dakota County ISD #192, Farmington Other 34.904% 25.675% 61.900% 1.932% Total 124.411% Section P Projected Captured Net Tax Capacity and Projected Tax Increment Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the Original Net Tax Capacity, the difference shall be known as the Captured Net Tax Capacity of the TIF District. The County Auditor shall certify to the Authority the amount of Captured Net Tax Capacity each year. The Authority may choose to retain any or all of this amount. It is the Authority's intention to retain 100% of the Captured Net Tax Capacity of the TIF District. -7- Exhibit C shows the projected tax increment generated over the anticipated life of the TIF District based on the assumptions set forth therein. Section Q Use of Tax Increment Each year the County Treasurer shall deduct 0.1 % of the annual tax increment generated by the TIF District and pay such amount to the State's General Fund. Such amounts will be appropriated to the State Auditor for the cost of financial reporting and auditing of tax increment financing information throughout the state. The Authority has determined that it will use 100% of the remaining tax increment generated by the TIF District for any of the following purposes: (1) Pay for the estimated public costs of the TIF District, including administrative expenses of the Authority and County administrative costs associated with the TIF District; (2) pay principal and interest on tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District or pay required reimbursement payments for such public costs to the developer pursuant to any pay-as-you-go development agreement entered into between the Authority and the developer; (3) pay all or a portion of the county road costs as may be required by the County Board under M.s. Section 469.175, Subdivision 1a; or (4) return excess tax increments to the County Auditor for redistribution to the City, County and School District in proportion to their local tax capacity rates. Tax increment shall not be used to finance the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the State or federal government. This prohibition does not apply to the construction or renovation of a parking structure, a common area used as a public park, or a facility used for social, recreational, or conference purposes and not primarily for conducting the business of the community. If there exists any type of agreement or arrangement providing for the developer, or other beneficiary of assistance, to repay all or a portion of the assistance that was paid or financed with tax increments, such payments shall be subject to all of the restrictions imposed on the use of tax increments. Assistance -8- includes sales of property at less than the cost of acquisition or fair market value, grants, ground or other leases at less than fair market rent, interest rate subsidies, utility service connections, roads, or other similar assistance that would otherwise be paid for by the developer or beneficiary. Section R Excess Tax Increment In any year in which the tax increments from the TIF District exceed the amount necessary to pay the estimated public costs authorized by the TIF Plan, the Authority shall use the excess tax increments to: (1) prepay any outstanding tax increment bonds; discharge the pledge of tax increments therefor; (2) (3) pay amounts into an escrow account dedicated to the payment of the tax increment bonds; or (4) return excess tax increments to the County Auditor for redistribution to the City, County and School District in proportion to their local tax capacity rates. Section S Tax Increment Pooling; Additional Limitation At least 75% of the tax increments from the TIF District must be expended on activities within the district or to pay for bonds used to finance the estimated public costs of the TIF District. No more than 25% of the tax increments may be spent on costs outside of the TIF District, but within the boundaries of the Project Area. All administrative expenses are considered to have been spent outside of the TIF District. Tax increments are considered to have been spent within the TIF District if such amounts are: (1) actually paid to a third party for activities performed within the TIF District within five years after certification of the district; (2) used to make payments or reimbursements to a third party under binding contracts for activities performed within the TIF District, which were entered into within five years after certification of the district; or (3) used to pay bonds that were issued and sold to a third party, the proceeds of which are reasonably expected on the date of issuance to be spent within the later of the five-year period or a reasonable temporary -9- period or are deposited in a reasonably required reserve or replacement fund. Beginning with the sixth year following certification of the TIF District, at least 75% of the tax increments must be used to pay outstanding bonds or make contractual payments obligated within the first five years. When outstanding bonds have been defeased and sufficient money has been set aside to pay for such contractual obligations, the TIF District must be decertified. The Authority reserves the right to allow for tax increment pooling from the TIF District. See, however, Section E for additional restrictions imposed on expenditures of tax increments of the TIF District. Section T Limitation on Administrative Expenses Administrative expenses are defined as all costs of the Authority other than: (1) amounts paid for the purchase of land; (2) amounts paid for materials and services, including architectural and engineering services, directly connected with the proposed development within the TIF District; (3) relocation benefits paid to, or services provided for, persons or businesses located within the TIF District; or (4) amounts used to pay interest on, fund a reserve for, or sell at a discount, tax increment bonds. Administrative expenses include amounts paid for services provided by bond counsel, fiscal consultants and planning or economic development consultants. Tax increments may be used to pay administrative expenses of the TIF District up to the lesser of (a) 10% of the total estimated public costs authorized by the TIF Plan or (b) 10% of the total tax increment expenditures of the project. Section U Limitation on Property Not Subject to Improvements If after four years from certification of the TIF District no demolition, rehabilitation, renovation, or qualified improvement of an adjacent street has commenced on a: parcel located within the TIF District, then that parcel shall be excluded from the TIF District and the Original Net Tax Capacity shall be adjusted accordingly. The Authority must submit to the County Auditor, by February 1 of -10- the fifth year, evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the Authority or owner of the parcel subsequently commences any of the above activities, the Authority shall certify to the County Auditor that such activity has commenced and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the Original Net Tax Capacity of the TIF District. Section V Estimated Impact on Other Taxing Jurisdictions Exhibit D shows the estimated impact on other taxing jurisdictions if the maximum projected Captured Net Tax Capacity of the TIF District was hypothetically available to the other jurisdictions. The Authority believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. Section W Local Government Aid Penalty Tax increment financing districts established or expanded after April 30, 1990 may cause a reduction in the local government aid (LGA/HACA) received by the City from the State. For tax increment financing plans approved on of after July 1, 1995, the Authority may elect at the time of such approval to make qualifying local contribution(s) to the TIF District, and thereby be exempt from any loss of local government aid. For renewal and renovation districts these contributions must equal 10% of the annual increment generated by the TIF District. Such contributions must be made out of unrestricted money and may not be made, directly or indirectly, with tax increments or developer payments. The contributions must be used to pay project costs and cannot be used for general government purposes or for costs which would have been incurred absent the project. The Authority may request contributions from other local governmental entities that will benefit from the establishment of the district. The Authority does hereby elect to make the qualifying local contribution(s) to the TIF District. See Exhibit E hereto - the Authority elects Option B as shown thereon. -11- Section X Prior Planned Improvements The Authority shall accompany its request for certification to the County Auditor with a listing of all properties within the TIF District for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the City. The County Auditor shall increase the Original Net Tax Capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. There have been no building permits issued in the last 18 months in conjunction with any of the properties within the TIF District. Section Y Development Agreements The Authority anticipates entering into an agreement for development of the TIF District by the developer, but does not anticipate that the Authority will acquire any property located within the TIF District. Section Z Assessment Agreements The Authority may, upon entering into a development agreement, also enter into an assessment agreement with the developer, which establishes a minimum market value of the land and improvements for each year during the life of the TIF District. The Authority does not anticipate entering into an assessment agreement since it anticipates any reimbursement of eligible public costs to the developer will be made only on a pay-as-you-go basis from increment actually received by the Authority. Section AA Modifications of the Tax Increment Financing Plan Any reduction or enlargement in the geographic area of the Redevelopment Project or the TIF District; increase in the amount of bonded indebtedness to be incurred; increase in the amount of capitalized interest; increase in that portion of the Captured Net Tax Capacity to be retained by the Authority; increase in the total estimated public costs; or designation of additional property to be acquired by the Authority shall be approved only after satisfying all the necessary requirements for approval of the original TIF Plan. This paragraph does not apply if: (1) the only modification is elimination of parcels from the Redevelopment Project or the TIF District; and -12- (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF District's Original Net Tax Capacity, or the Authority agrees that the TIF District's Original Net Tax Capacity will be reduced by no more than the current net tax capacity of the parcels eliminated. The Authority must notify the County Auditor of any modification that reduces or enlarges the geographic area of the Redevelopment Project or the TIF District. The geographic area of the TIF District may be reduced but not enlarged after five years following the date of certification. Section AB Administration of the Tax Increment Financing Plan Upon adoption of the TIF Plan, the Authority shall submit a copy of such plan to the Minnesota Department of Revenue. The Authority shall also request that the County Auditor certify the Original Net Tax Capacity and Net Tax Capacity Rate of the TIF District. The County shall distribute to the Authority the amount of tax increment as it becomes available. The amount of tax increment in any year represents the applicable property taxes generated by the Captured Net Tax Capacity of the TIF District. The amount of tax increment may change due to development anticipated by the TIF Plan, other development, inflation of property values, or changes in property classification rates or formulas. Tax increment shall be computed in accordance with Minnesota Statutes, Section 469.177. Section AC Financial Reporting and Disclosure Requirements The State Auditor shall enforce the provisions of the TIF Act and shall have full responsibility for financial and compliance auditing of the Authority's use of tax increment financing. The Authority and City shall comply with the disclosure and reporting requirements of Section 469.175, subd. 5, subd. 6 and subd. 6a. -13- Report of Building Official Regarding Buildings A-I Exhibit A TO: Tom Truszinski FROM: John Menke ~,nf('I Building Official '""""\ 'I" \ SUBJECT: 200 Third Street DATE: April 8, 1997 This property has two structures. One is approximately 99' X 41 ' and has been moved to this site from the lollo lht: suuLh. I hoav!: l:1U~ch(:d a letter sent to Mr. Finnegan on September 10. 1996 that pertains to this building. The other is approximately 66' X 36'. This building apparently is on a cement slab, steel frame with a tin roof and siding. The roof and siding have several holes. In the past this building was used for grain and fertilizer :s'lonlgt:. Neither building complies with the State Building Code applicable to structures of similar type and size- Based on my inspection, the cost to bring these buildings into code compliance would exceed 15% of the cost of a new building of similar size and structure. Cit:1J. of Farminf.ton 325 Galt. Street · Farm;nqton, MN 5502G · (612 J 463-7771 · Fu (612) 463-2591 . '"i RE: ::100 Third' ::>tt~ Dear Property Owner. "---r , i , . I I i On August 15, 1996. Mike Palm Fire Marshall and myself ins~ted ~1e metal building that was moved to this lot from the lot to the 3vL.-ttt. I There is no fou.'1Ciaticn and the building is just setting on the ground. This building is a..:so nnc;e<:lIred. Therefore, based upoa S~tion 102 of the 199d uniform Building Code ane ~-rinnesota Statutes Section 4.63 (Hazardous and Substandard Buildings) this b~iJdjng is a hazardous building as defined :n Minnesota Statute 463.1:, subd. 3. 1he bdlding presenti)" con.stit'.ltc:.s <'I. haza.rd to ~:ct)", hC!llth, and public '.veit":1re by r~cn ofiits inadeq~~te rnainten3nc~, dilapidation. unsanitary conditions and a frre hazard. . ~o permits have t;>een lssued to move tt'Js 'ot;ilding or for any ':Jther wprK on ie. ~ This letter is to pro-vide you notice that .he City of F aroL'1gtcn is O!'d~rir.g you, as owner of tn is hazardous building a.'1d property, to correct or remove the hazJ.!dous ~onditions of the building. If you d\J not undertake action to repair this within thirty days of the ~te of this [etter, the Cit)' will taklli leg21 action pu~uant to Minnt'.sota St~t. Seetin" 4.6~ i Pleas:: note any repairs or work done at this property will require a p~~r permits. I If you have an)' questions, please c3Il463-183;. Sincerely. John W. Mcmke Building Official .....'w. Karen finstuen. Admini.strative Assistant Dave Grannis, City Ar.omey Eagles Letter re Need For Tax Increment Assistance B-1 Exhibit B Exhibit C Projected Tax Increment Report C-l CITY OF FARMINGTON, MINNESOTA DOWNTOWN REDEVELOPMENT PROJECT AREA TAX INCREMENT FINANCING DISTRICT NO. 13 CAPTURED TAX CAPACITY ASSUMPTIONS: District Established April 14, 1997 Project Constructed During 1997 First Tax Increment Received in 1999 PROJECT DESCRIPTION: EAGLES CLUB PROJECT (A) ( B) ( C) (D) ( E) ( F) (G) ( H) ( I ) CAPTURED 100.00% 90.00% ASSESSOR'S NEW BASE TAX ESTlrvlA TED ESTIMATED VALUE PAY MARKET CLASS TAX TAX CAPACITY TAX TAX YEAR YEAR VALUE PATE CAPACITY CAPACITY VALUE INCREMENT INCREMENT 1997 1998 0.00% 1998 1999 622,600 4.60% 27,040 1,266 25,774 32,065 28,859 \ 1999 2000 622,600 4.60% 27,040 1,266 25,774 32,065 28,859 2000 2001 622,600 4.60% 27,040 1,266 25,774 32,065 28,859 2001 2002 622,600 4.60% 27,040 1,266 25,774 32,065 28,859 2002 2003 622,600 4.60% 27,040 1,266 25,774 32,065 28,859 2003 2004 622.600 4. 60~/o 27,040 1,266 25,774 32,065 2 9 2004 2005 622,600 4.60% 27,040 1,266 25,774 32,065 28, p 9 2005 2006 622,600 4.60% 27,040 1,266 25,774 32,065 28.859 2006 2007 622,600 4.60% 27,040 1,266 25,774 32,065 28,859 2007 2008 622,600 4.60% 27,040 1.266 25,774 32,065 28.859 2008 2009 622,600 4.60% 27,040 1.266 25.774 32,065 28,859 2009 2010 622,600 4.60% 27,040 1,266 25,774 32,065 28,859 2010 2011 622,600 4. 600~ 27,040 1,266 25.774 32,065 28,859 2011 2012 622,600 4.60% 27,040 1.266 25,774 32.065 28.859 2012 2013 622,600 4.60% 27.040 1.266 25,774 32.065 28,859 5480,978 S432,880 NPV= 5316,576 5284,918 (8) The 1997 Plan identifies a 15 year district with pay 2013 being the last year to collect increment. (C) Assumes a "new" market value of $622.600 for the building including land value (D) As per current state law. (E) Assessors market value upon completion of the proposed structure multiplied by the class rate. (F) The 1996 market value of the District ($42.200) multiplied by the class rate. (G) The difference between the new tax capacity and the base tax capacity. (H) The estimated tax increment based on a tax rate of 124.4110/0. Although the current tax rate is is higher, Minnesota Statutes 469 states that the tax capacity rate used for this calculation shall be the current rate or the base year rate. whichever is less. Estimated Impact on Other Taxing Jurisdictions Report D-l Exhibit D CITY OF FARMINGTON, MINNESOTA DOWNTOWN REDEVELOPMENT PROJECT AREA TAX INCREMENT FINANCING DISTRICT NO. 13 ESTIMATED IMPACT ON OTHER TAXING JURISDICTIONS Estimated Average Captured Tax Capacity (1999-2013) Payable 1997 Local Tax Rate $25.774 124.411 % Estimated Annual Tax Increment $32,066 PAYABLE 1997 TAX CAPACITIES OF AFFECTED TAXING JURISDICTIONS Dakota County School District City of Farmington TAX CAPACITY 299.857,307 8,988,378 5.265,108 CAPTURED TAX CAPACITY S25,774 S25.774 525,774 PERCENT CAPTURED 0.01 % 0.29 % 0.49 % DOLLAR IMPACT ON AFFECTED TAXING JURISDICTIONS PAY 1997 TAX ADDED LOCAL %OF INCREMENT LOCAL TAX RATE TOTAL SI-fARE TAX RATE Dakota County 25.675 01 20.64% 6,617 0.002 01 '0 ,0 School District 61 .900 ~~ 49.75%, 15,954 0.177 01 ,0 City of Farmington 34.904 % 28.06% 8,996 0.171 01 ,0 Other 1.932 % 1.55% 498 124.411 % 100.00% 32,066 STATEMENT #1: Assuming that ALL of the captured tax capacity would be available to all taxing jurisdictions even if the City does not create Tax Increment Financing District No. 13, then the creation of the District will reduce the tax capacities and increase the tax capacity rates as illustrated in the above-referenced tables. STATEMENT #2: Assuming that NONE of the captured tax capacity would be available to all taxing jurisdictions if the City did not provide tax increment assistance through Tax Increment Financing District No. 13, then the plan has virtually no initial impact on the tax capaCities of the taxing jurisdictions. However, once the District is established. allowable costs are paid from increments, and the District is terminated. all taxing jurisdiction will enjoy an improvement in their tax base. Exhibit E LGA/HACA Penalty Calculations E-I CITY OF FARMINGTON, MINNESOTA DOWNTOWN REDEVELOPMENT PROJECT AREA TAX INCREMENT FINANCING DISTRICT NO. 13 LGA/HACA PENALTY CALCULATIONS ASSUMPTIONS: District Established April 14, 1997 Project Constructed During 1997 First T ax I ncrement Received in 1 999 YEAR o 1 2 3 4 5 \ 6 7 8 9 1 0 1 1 12 1 3 14 1 5 1 6 YEAR TAXES PAYABLE 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 CAP'D TIF TAX CAPACITY o 25.774 25.774 25.774 25,774 25,774 25,774 25,774 25,774 25,774 25,774 25,774 25,774 25,774 25,774 25.774 PHASE-IN QUALlFY- % ING PER STATE TIF TAX LA W CAPACITY 0.00% 0.00% 0.00% 0.00% 0.00% 12.50% 25.00% 37.50% 50.00% 62.50% 75.00% 87.50% 100.00% 100.00% 100.00% 100.00% o o o o o 3,222 6,444 9,665 12,887 16.109 19,331 22,552 25,774 25,774 25,774 25.774 Est'd Pay '95 SCHOOL SALES RATIO (1) ADJ'D TAX CAPACITY (QUALIFYING) 81.80% 81.80% 81.80% 81.80% 81.80% 81.80% 81.80% 81.80% 81.80% 81.80% 81.80% 81.80% 81.80% 81.80% 81.80% 81 80% o o o o o 3,939 7,877 11,816 15,754 19,693 23,631 27,570 31,509 31,509 31,509 31,509 ............u........................................ ............. . . . . . . . . . . Est'd ~ OPTION OPTION ~ Pay '97 ~ A 8: PENALTY ~ LGA/ 10.00% : TAX [HACA LOCAL : RATE (2) ; PENALTY (3) CONTRN 37.40%i 37.40%~ 37.40%; 37.40%~ 37.40%; 37.40%~ 37.40%~ 37.40%; 37 40'%'[ 37.40%i 37.40%; 37.40%i 37 40 % 1 37.40%~ 37.40%j 3740%~ o o o o o 1,473 2,946 4,419 5,892 7,365 8.838 10,311 11,784 11,784 11,784 11.784 o[ 2.577[ 2.577; 2,577j 2.577; 2,577i 2. 577~ 2.577i 2,5771 2,577j 2.577; 2, 577~ 2,5771 2. 577~ 2.577; 2 <:;77: ,..... ': NOTE (1)- Per Tom Clarl<. Department of Revenue, 297-2538. A.mounts in future will vary. TOT A l= L.............~.~.:..?~.?...............~.~.!.~..?..~.' NOTE (2)- Per Gary Olson, Department of Education, 297-3625. Amounts in future will vary. NOTE (3)- Estimated reduction in State paid LGA or HACA aids. If desired, the City may increase the tax levy to cover the reduction. 0tJ TO: Mayor and Councilmembers FROM: John F. Erar, City Administrator SUBJECT: Public Hearing to Amend the Original Downtown Redevelopment District DATE: April 21, 1997 INTRODUCTION As Council is aware, the HRA had committed to assisting the developer, Ms. Melissa Lee, with approximately $24,000 in tax increment financing. At this time, the Council will need to approve an amendment to the Original Redevelopment Project Area to facilitate this use of tax increment for qualifying redevelopment expenditures made by the developer. DISCUSSION Mr. Thomas Truszinski will be present to review the project plan and financial particulars underwriting the assistance to the Ms. Lee redevelopment project. BUDGET IMPACT As indicated earlier, the use of tax increment financing may result in a local government penalty to the City. However, in light of the fact, that this district is scheduled to be closed by April 1, 2001 for any new redevelopment projects, the Local Government Aid penalty, as presented, will be fairly minimal. This information will be formally presented to Council at the April 21, 1997 meeting. ACTION REQUESTED 1) Open the Public Hearing for the purpose of receiving comments relative to amending the Original Redevelopment Project Area to assist the developer in site acquisition, demolition and other miscellaneous qualifying expenditures. The level of financial assistance committed to by the Farmington HRA was in an amount not to exceed $24,000. 2) Adopt the attached resolution authorizing amending the Original Redevelopment Project Area to assist the developer (Ms. Melissa Lee) in site acquisition and redevelopment. Re~ectfully submitted, ~C/~ John F. Erar / City Administrator CitlJ. of Farminf/.ton 325 Oak Street · Farmintjtonl MN 5502~ · (612) ~63-7111 · Fal( (612) ~63-2591 CERTIFICATION OF MINUTES RELATING TO DOWNTOWN REDEVELOPMENT PROJECT Governmental Unit: City of Farmington, Minnesota Governing Body: City Council Kind, date, time and place ot meeting: A regular meeting held April 21, 1997, at 7:00 oclock P.M., at the City Hall, Farmington, Minnesota. Members present: Members absent: Documents Attached: ~Iinutes of said meeting (including): RESOLUTION NO. RESOLUTION APPROVING AMENDMENT TO REDEVELOPMENT PLAN FOR FARMINGTON REDEVELOPMENT PROJECT AREA I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the bonds referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting ot the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said bonds; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this _ day of April, 1997. Administrator Councilmember moved its adoption: introduced the following resolution and RESOLUTION NO. _ RESOLUTION APPROVING AMENDMENT TO REDEVELOPMENT PLAN FOR F A&.\I1INGTON REDEVELOPMENT PROJECT AREA WHEREAS, the Farmington Housing and Redevelopment Authority has heretofore adopted a Redevelopment Plan (the "Plan") for the Farmington Redevelopment Project Area; and WHEREAS, it is now proposed that the Plan be amended to facilitate the acquisition of property within the Original Redevelopment Project Area, the demolition of an existing structure and the construction a restaurant facility on the property with related site improvements; and WHEREAS, the HRA has prepared an amendment to the Plan (the "1997 Amendment") updating the Plan to cover the proposed development; WHEREAS, pursuant to Section 469.029, subd. 6, Minnesota Statutes, the City has conducted a public hearing on the adoption of the 1997 Amendment; and WHEREAS, the 1997 Amendment has heretofore been approved by the Board of Commissioners of the HRA; and WHEREAS, the City has held a public hearing on the 1997 Amendment after published notice as required by Minnesota Statutes, Section 469.028. NOW, THEREFORE, BE IT RESOLVED that the City Council makes the following findings with respect to the Plan and the 1997 Amendment, to-wit: 1. With respect to the Plan, the Council confirms the findings made in Resolution No. R14-90, adopted by the Council on March 14, 1990. 2. The land described in the 1997 Amendment is subject to blighting conditions preventing private development and it would not be available for redevelopment without the governmental assistance and financial aid proposed to be made available pursuant to the 1997 Amendment. 3. The 1997 Amendment will afford maximum opportunity for redevelopment by private enterprise, consistent with the sound needs of the locality as a whole, since the proposed redevelopment will be undertaken by private enterprise and the role of the HRA will be to provide assistance with a portion of the public redevelopment costs. -4:. The redevelopment to be assisted pursuant to the 1997 Amendment is consistent with the general land use proposals and planning objectives established by the City in its Comprehensive Plan. BE IT FURTHER RESOLVED, by the City Council of the City of Farmington: 1. The 1997 Amendment is approved. ") The City Administrator is directed to communicate the Council's approval of the 1997 Amendment to the HRA. The motion for the adoption of the foregoing resolution was seconded by Councilmember and upon voting being taken thereon, the following voted in favor thereof: and the following were absent: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. - 3 - 1997-1 AMENDMENT TO FARMINGTON REDEVELOPMENT PROJECT PLAN Approved by the HRA: April 14, 1997 Approved by the City of Farmington: April 21, 1997 Section 1. Background. The Redevelopment Plan (the "Plan") for the Farmington Redevelopment Project Area was originally drafted in December, 1974 and updated in February, 1990. The Project Area originally encompassed a large portion ot the central area or the City (the "Original Project Area"). The boundaries of the Project Area were expanded in 1990 to cover certain areas or the City outside or the Original Project Area (the Project Area, as expanded, being referred to as the "Expanded Project Area"). Among the redevelopment objectives of the Plan is to enhance the livability or the City through the elimination or blighted areas by removing substandard, blighted and obsolete structures and providing a cleared and improved site ror new business development. Section 2. Proposed Development. The HRA proposes to assist a development within the Original Project Area near the intersection of 3rd and Oak Streets in the City involving the acquisition or the site, the demolition or a blighted and obsolete structure on the site, the improvement of the site with necessary infrastructure and the construction thereon or a restaurant racility. The development is to be undertaken by Laixing, Inc. or a related entity. The HRA proposes to assist the development by providing up to $24,000 ror tax increment eligible expenses on a pay-as-you-go basis. The development would assist in achieving the redevelopment objectives or the Plan as outlined in Section 1 above. Section 3. Tax Increment. Pursuant to Minnesota Statutes, Section 469.176, subd. 1c, the HRA cannot collect tax increment from the Original Project Area past April 1, 2001 except for the limited purposes set forth in said Section. Attached hereto as Exhibit A is an estimate or the increment payable by the proposed development in years 1999 and 2000, assuming the development is fully constructed in 1997. Said increment, up to $24,000, will be devoted to payment, or reimbursement, or eligible expenses in connection with the development, including land acquisition assistance, clearance and demolition, site preparation and infrastructure improvements, all pursuant to an agreement to be executed between the HRA and developer. The HRA is not amending the boundaries or the Original Project Area, and assisting the development will not extend the life or the Original Project Area. E"t ~JI +- R CITY OF FARMINGTON, MINNESOTA DOWNTOWN REDEV8...0PMENT PROJECT AREA ASSUMPTIONS: PROJECTED TAX INCREMENT CALCULATION PROJECT DESCRIPTION: RESTAURANT PROJECT Project Constructed During 1 997 First T ax Increment Received in ; 999 (A) (B) (e) ( 0) (E) (F) (G) ( H) CAPTURED '00.00% ASSESSOR'S NEW BASE TAX ESTIMATED VALUE PAY MARKET CLASS TAX TAX CAPACITY TAX YEAR YEAR VALUE RATE CAPACITY CAPACITY VALUE II\CREMENT 1997 1998 0 4.60% 0 0 0 0 1998 ;999 450,000 4.60% 19,100 2.604 16,496 20,523 ; 9'9 9 2000 450.000 4.60% 19,100 2,604 i 6.498 20,523 541.048 (8) Pay 2000 is the last year to collect increment per Minnesota Statutes 469.176 subd. lC. (C) Assumes a "new" market value of $450,000 for the building including land value (0) As par current state law. (E) Assessors market value upon completion of the proposed structure multiplied by the class rate. (F) The 1996 market value of the District multiplied by the class rate. (G) The difference between the new tax capacity and the base tax capacity. b~ TO: Mayor and Councilmembers FROM: John F. Erar, City Administrator SUBJECT: Industrial Revenue Bonds Precision Engineering DATE: April 21, 1997 INTRODUCTION On September 3, 1996, the Council gave preliminary approval for the issuance of Industrial Revenue Bonds to assist Wanner Engineering in the construction and completion of a 40,000 square foot expansion in Phase I of the City's Industrial Park. These construction costs were proposed to be financed by a $2.5 million Industrial Revenue Bond. Wanner Engineering is now requesting that the City approve the issuance of these bonds to underwrite the construction of this recent expansion. DISCUSSION As Council may be aware, the issuance of Industrial Revenue Bonds does not affect the City's tax capacity rate and are essentially financed by the company on whose behalf the issuance of the debt is secured. Security of debt repayment is pledged by the company and underwritten through private financial institutions. Council may recall a similar issuance on behalf of Lexington Standard. Accordingly, there is essentially no risk to the City regarding the approval and issuance of these category type bonds. BUDGET IMP ACT None. ACTION REQUESTED Open the Public Hearing for the purpose of receiving comments relative to the issuance of bonds in support of this project on behalf of Wanner Engineering, Inc. Adopt the attached resolution authorizing the issuance of Industrial Revenue Bonds, Series 1997 and the execution of appropriate documents as required under Minnesota Statutes, Section 469.153. R~peCjJX:d' ~.Erar t~ ~dministrator CitlJ. of FarminlJ.ton 325 Oak Street · Farmintjtonl MN 5502~ · (612) ~63-7111 · Fal( (612) 463-2591 DORSEY & WHITNEY LLP LONDON PILLSBURY CENTER SOUTH 220 SOUTH SIXTH STREET MINNE^POLlS. MINNESOT^ 55402-1498 TELEPHONE: (612) 340-2600 F^x: (612) 340-2868 VERIANE L. ENDORF (612) 340-2651 NEW YORK MINNEAPOLIS WASHINGTON, D.C. DENVER SEATTLE BRUSSELS FARGO HONG KONG BILLINGS DES MOINES MISSOULA ROCHESTER COSTA MESA GREAT FALLS April 11, 1997 ctf'l (. \ t>.I'R 111 ,~ t 1991 Mr. John F. Erar City Administrator City of Farmington 325 Oak Street Farmington, MN 55024-1358 .I Re: Precision Fitting and Valve Project/ Wanner Engineering Inc. Dear Mr. Erar: Enclosed is a revised draft of the resolution approving the project and authorizing the issuance of the bonds to be adopted by the City Council following the public hearing on April 21. This can replace the initial draft of the resolution which was included in the package of materials enclosed with the letter of April 8 from Lenore Aaseng of our office. The Project to be financed by the proposed bond issue is a 40,000 square foot manufacturing facility constructed by Wanner Engineering, Inc. (the "Company") following the adoption by the City Council of a preliminary reimbursement resolution. The building will be owned by WFW Ventures, LLC (the "Borrower"), a limited liability company formed by the Company, and will be leased by the Borrower to the Company. The Company plans to use the building for the manufacturing and assembly business of its Precision Fitting and Valve division; initially, only half of the building will be used by Precision, with the other half subleased to Centre Manufacturing, Inc. for a five-year period. It is anticipated that, upon the expiration of the Centre Manufacturing sublease, Precision will expand its manufacturing and assembly operations into the remainder of the building. The Bonds will be issued pursuant to an Indenture of Trust between the City and Firstar Trust Co. (the "Trustee"), and the Bond proceeds will be loaned to the B9rrower pursuant to a Loan Agreement between the City and the Borrower. The Borrower will agree in the Loan Agreement to operate and maintain the Project and pay all of the costs thereof, and will agree to pay loan repayments to the Trustee for the account of the City in the amounts and at the times required to pay the principal of and interest on the Bonds. The lease from the Borrower to the Company will also be assigned to the Trustee as security for the Bonds. DORSEY & WHITNEY LLP Mr. John F. Erar April 11, 1997 Page 2 The Bonds will be issued with a floating interest rate, and will be subject to tender by the bondholders for purchase by the Borrower upon seven days' notice. The Borrower's obligation to purchase the Bonds upon tender, and the prompt and full payment of the principal of and interest on the Bonds, will be secured by an irrevocable, direct-pay letter of credit issued by Firstar Bank of Minnesota, N.A. to the Trustee, for the account of the Borrower. If you have questions about the financing or the enclosed resolution, please call me. Very truly yours, VLE/pmh Enclosure CERTIFICATION OF MINUTES RELATING TO INDUSTRIAL DEVELOPMENT REVENUE BONDS (PRECISION FITTING AND VALVE PROJECT) SERIES 1997 Issuer: City of Farmington, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting, held on April 21, 1997, at 7:00 o'clock p.m., at the City Hall. Members present: Members absent: Documents Attached: Minutes of said meeting (pages): MINUTES OF PUBLIC HEARING ON PROPOSED PROJECT and RESOLUTION APPROVING A PROJECT ON BEHALF OF PRECISION FITTING AND VALVE, A DIVISION OF WANNER ENGINEERING, INe. AND ITS FINANCING UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; AUTHORIZING THE ISSUANCE OF INDUSTRIAL DEVELOPMENT BONDS (PRECISION FITTING AND VALVE PROJECT), SERIES 1997, AND THE EXECUTION OF DOCUMENTS AND OTHER MATTERS RELATING THERETO I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of the corporation in my legal custody, from which they have been transcribed; that the documents are a correct and complete transcript of the minutes of a meeting of the governing body of the corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at the meeting, insofar as they relate to the obligations; and that the meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer and the seal of the City this _ day of April, 1997. (SEAL) City Administrator The Mayor stated that this was the time and place fixed for a public hearing to be held on the proposal that the City undertake and finance a project (the "Project") on behalf of Precision Fitting and Valve, a division of Wanner Engineering, Inc., a Minnesota corporation (the "Company"), pursuant to Minnesota Statutes, Sections 469.152 through 469.165. The City Administrator presented an affidavit showing publication of the notice of public hearing at least once not less than 14 nor more than 30 days prior to the date fixed for the public hearing, in The Farmington Independent, the official newspaper of the City and a newspaper of general circulation in the City. The affidavit was examined, found to be satisfactory and ordered placed on file with the City Administrator. The Mayor then opened the meeting for the public hearing on the proposal to undertake and finance the Project on behalf of the Company. The purpose of the hearing was explained, the nature of the Project and of the proposed revenue bonds was discussed, the draft copy of the Application to the Minnesota Department of Trade and Economic Development with draft copies of all attachments and exhibits were available, and all persons present who desi,red to do so were afforded an opportunity to express their views with respect to the proposal to undertake and finance the Project, in response to which the following persons either appeared, were recognized and made statements, or filed written comments with the City Administrator before the date set for the hearing, summaries of which appear opposite their respective names: Name of Speaker Summary of Views The City Administrator [reported that no written comments had been] [read a summary of the written comments]* filed in his office before the date of the hearing. After all persons who wished to do so had stated or filed their views on proposal, the Mayor declared the public hearing to be closed. *Strike inappropriate language RESOLUTION APPROVING A PROJECT ON BEHALF OF PRECISION FITTING AND VALVE, A DIVISION OF WANNER ENGINEERING; INC. AND ITS FINANCING UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; AUTHORIZING THE ISSUANCE OF INDUSTRIAL DEVELOPMENT BONDS (PRECISION FITTING AND VAL VB PROJECT), SERIES 1997, AND THE EXECUTION OF DOCUMENTS AND OTHER MATTERS RELATING THERETO WHEREAS, pursuant to a resolution adopted on September 3, 1996, this Council gave preliminary approval to the issuance of revenue bonds by the City of Farmington, Minnesota (the "City") under Minnesota Statutes, Sections 469.152 through 469.165 (the "Act") in an amount not to exceed $2,500,000 to finance a project on behalf of Precision Fitting and Valve, a division of Wanner Engineering, Inc., a Minnesota corporation (the "Company"), consisting of the construction and equipment of an approximately 40,000 square foot manufacturing facility adjacent to the Company's existing facility located on Highway 50 in the Farmington Industrial Park (the "Project") to be used by the Company in its business of manufacturing, assembly and distribution of precision engineered products; and WHEREAS, at a public hearing, duly noticed and held on April 21, 1997, in accordance with the Act and Section 147(f) of the Internal Revenue Code of 1986, on the proposal to undertake and finance the Project, all parties who appeared at the hearing were given an opportunity to express their views with respect to the proposal to . undertake and finance the Project and interested persons were given the opportunity to submit written comments to the City Administrator before the time of the hearing. Based on the public hearing, such written comments (if any) and such other facts and circumstances as this Council deems relevant, this Council hereby finds, determines and declares as follows: (a) The welfare of the State of Minnesota requires active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental actions for the purpose of preventing the emergence of blighted and marginal lands and areas of chronic unemployment, and the State of Minnesota has encouraged local government units to act to prevent such economic deterioration. (b) The undertaking of the Project would further the general purposes contemplated and described in Section 469.152 of the Act. (c) The existence of the Project would add to the tax base of Dakota County, the City and the School District in which the Project is located and would provide increased opportunities for employment for residents of the City and surrounding area. (d) This Council has been advised by representatives of the Company that conventional, commercial financing to pay the cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of constructing and operating the Project would be reduced, but that with the aid of municipal borrowing, and its resulting lower borrowing cost, the Project is economically more feasible. (e) The Council has been advised by representatives of the Company that the Project would not be undertaken but for the availability of industrial development bond financing. (f) This Council has also been advised by representatives of the Company that on the basis of their discussions with potential buyers of tax-exempt bonds, revenue bonds of the City (which may be in the form of a revenue note or notes) could be issued and sold upon favorable rates and terms to finance the Project. (g) The City is authorized by the Act to issue its revenue bonds to finance capital projects consisting of properties used and useful in connection with a revenue-producing enterprise, such as that of the Company, and the issuance of the bonds by the City was substantial inducement to the Company to construct the Project; and WHEREAS, the City is authorized by the Act to enter into a revenue agreement with any person in such manner that payments required thereby to be made by the contracting party shall be fixed, and revised from time to time as necessary, so as to produce income and revenue sufficient to provide for the prompt payment of principal of and interest on all bonds issued under the Act when due, and the revenue agreement shall also provide that the contracting party shall be required to pay all expenses of the operation and maintenance of the project including, but without limitation, adequate insurance thereon and insurance against all liability for injury to persons or property arising from the operation thereof, and all taxes and special assessments levied upon or with respect to the project and payable during the term of the revenue agreement; and WHEREAS, the Company has formed a Minnesota limited liability company, WFW Ventures LLC (the "Borrower"), which will own the Project and lease it to the Company; the Borrower will be the recipient of the loan from the City hereinafter described, and the lease will require that the Company perform all of the obligations of the Borrower with respect to the revenue bonds; the lease will be assigned by the Borrower as security for the revenue bonds; and WHEREAS, pursuant to the Act and the Indenture of Trust (the "Indenture") to be dated as of May I, 1997, between the City and Firstar Trust Co. (the "Trustee"), the City proposes to authorize, issue and sell its Industrial Development Revenue -2- Bonds (Precision Fitting and Valve Project), Series 1997 (the "Bonds") in an aggregate principal amount not to exceed $2,000,000, payable solely from the amounts pledged therefor under the Indenture; and WHEREAS, pursuant to a Loan Agreement (the "Loan Agreement"), to be dated as of May 1, 1997, between the City and the Borrower, the City proposes to loan the proceeds of the Bonds to the Borrower, which the Borrower will agree to repay in installments in amounts and at times sufficient to pay the principal of, premium, if any, and interest on the Bonds when due, and which proceeds the Borrower will agree to use to pay a portion of the costs of the Project; and WHEREAS, concurrently with, as a condition to, and as further security for, the issuance of the Bonds, and pursuant to a Letter of Credit and Reimbursement .Agreement, to be dated as of May 1, 1997, between Firstar Bank of Minnesota, N.A. (the "Bank") and the Borrower, the Bank will issue an irrevocable direct-pay Letter of Credit (the "Letter of Credit") to the Trustee; and WHEREAS, the Trustee is entitled to draw on the Letter of Credit to pay principal and interest on the Bonds in accordance with the provisions of the Indenture, which provisions include, but are not limited to, draws on the Letter of Credit in the event the Bonds are not remarketed, when applicable, according to the provisions of a Remarketing Agreement (the "Remarketing Agreement") among the City, the Trustee, the Borrower and Miller & Schroeder Financial, Inc.; and WHEREAS, neither the City nor the State of Minnesota nor any political subdivision thereof (other than the City and then only to the extent of the trust estate pledged in the Indenture) shall be liable on the Bonds, and the Bonds shall not be a debt of the City or the State of Minnesota or any political subdivision thereof (other than the City and then only to the extent of the trust estate pledged in the Indenture), and in any event shall not give rise to a charge against the credit or taxing power of the City, Dakota County (the "County"), the State of Minnesota, or any political subdivision thereof; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FARMINGTON, MINNESOTA, AS FOLLOWS: Section 1. It is hereby determined to proceed with the Project and its financing under the Act. All details of such revenue bond issue and the provisions for payment thereof shall be subject to final approval of the Project by the Minnesota Department of Trade and Economic Development (the "Department") and may be subject to such further conditions as the City may specify. -3- Section 2. The Application to the Minnesota Department of Trade and Economic Development (the "Application"), with attachments, is hereby approved, and the Mayor and City Administrator are authorized to execute said documents on behalf of the City. Section 3. In accordance with Section 469.154, Subdivision 3 of the Act, the Mayor and City Administrator are hereby authorized and directed to cause the Application to be submitted to the Department for approval of the Project. The Mayor, City Administrator, City Attorney and other officers, employees and agents of the City are hereby authorized and directed to provide the Department with any preliminary information needed for this purpose. The City Attorney is authorized to initiate and assist in the preparation of such documents as may be appropriate to the Project, if approved by the Department. . Section 4. The City finds that the Bonds are payable solely from the trust estate including the City's interest in the Loan Agreement and amounts drawn under the Letter of Credit issued by the Bank or any provider of a substitute letter of credit. Section 5. The City further findsl determines, and declares that it is in the best interests of the City to (1) provide for the issuance of the Bonds, the disbursement of the proceeds and the security therefor pursuant to the terms of the Indenture; and (2) loan the proceeds of the Bonds to the Borrower in accordance with the provisions of the Loan Agreement. Section 6. The issuance of the Bonds for the purpose of financing the Project is hereby authorized. The Bonds shall bear interest initially at a rate not in excess of percent ( %) per annum, subject to final determination and subsequent adjustments as set forth in the Indenture, shall be in such denomination and form, be numbered and dated, shall mature and be subject to redemption prior to maturity, and shall have such other details and provisions as are prescribed in the Indenture. Section 7. The Bonds shall be spedallimited obligations of the City payable solely from and secured by a pledge of the trust estate under the Indenture, including the City's interest in the Loan Agreement and amounts drawn under the Letter of Credit, in the manner provided in the Indenture. The Bonds do not constitute an indebtedness, liability, general or moral obligation (except to the extent of the trust estate pledged under the Indenture) or a pledge of the faith and credit or any taxing power of the City, the County, the State of Minnesota, or any political subdivision thereof. The City hereby authorizes and directs the Mayor and the City Administrator to execute under the corporate seal of the City, the Indenture, and to deliver to said Trustee the Indenture, and hereby authorizes and directs the execution and delivery -4- of the Bonds in accordance with the Indenture, and hereby provides that the Indenture shall provide the terms and conditions, covenants rights, obligations, duties and agreements of the bondholders, the City and the Trustee as set forth therein. All of the provisions of the Indenture, when executed as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated herein and shall be in full force and effect from the date of execution and delivery thereof. The Indenture shall be substantially in the form on file with the City on the date hereof, and is hereby approved with such necessary and appropriate variations, omissions, and insertions as are not materially inconsistent with such form and as the Mayor shall determine; provided that the execution thereof by the Mayor shall be conclusive evidence of such determination. Section 8. The Mayor and the City Administrator are hereby designated as the representatives of the City with respect to the issuance of the Bonds and the transactions related thereto and the Mayor is hereby authorized and directed to accept, execute and deliver the Placement Agent Agreement (the "Placement Agent Agreement") among the City, the Borrower and Miller & Schroeder Financial, Inc. All of the provisions of the Placement Agent Agreement, when executed and delivered as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated herein and shall be in full force and effect from the date of execution and delivery thereof. The Placement Agent Agreement shall be substantially in the form on file with the City on the date hereof, and is hereby approved with such necessary and appropriate variations, omissions, and insertions as are not materially inconsistent with such form as the Mayor shall determine; provided that the execution thereof by the Mayor shall be conclusive evidence of such determination. Section 9. The Mayor and the City Administrator are hereby authorized and directed to execute and deliver the Loan Agreement with the Borrower, and when executed and delivered as authorized herein, the Loan Agreement shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated herein and shall be in full force and effect from the date of execution and delivery thereof. The Loan Agreement shall be substantially in the form on file with the City on the date hereof, which is hereby approved, with such necessary variations, omissions, and insertions as are not materially inconsistent with such forms and as the Mayor shall determine; provided that the execution thereof by the Mayor shall be conclusive evidence of such determination. Section 10. The Mayor is hereby authorized and directed to execute and deliver the Remarketing Agreement, and when executed and delivered as authorized herein, such agreement shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the -5- date of execution and delivery thereof. The Remarketing Agreement shall be substantially in the form on file with the City on the date hereof, which is hereby approved, with such necessary variations, omissions, and insertions as are not materially inconsistent with such forms and as the Mayor shall determine; provided that the execution thereby by the Mayor shall be conclusive evidence of such determina tion. Section 11. All covenants, stipulations, obligations, representations, and agreements of the City contained in this resolution or contained in the Indenture or other documents referred to above shall be deemed to be the covenants, stipulations, obligations, representations, and agreements of the City to the full extent authorized or permitted by law, and all such covenants, stipulations, obligations, representations, and agreements shall be binding upon the City. Except as otherwise provided in this r~solution, all rights, powers, and privileges conferred, and duties and liabilities imposed, upon the City by the provisions of the resolution or of the Indenture or other documents referred to above shall be exercised or performed by the Cityl or by such officers, board, body, or agency as may be required or authorized by law to exercise such powers and to perform such duties. No covenant, stipulation, obligations, representation, or agreement herein contained or contained in the Indenture or other documents referred to above shall be deemed to be a covenant, stipulation, obligations, representation, or agreement of any officer, agent, or employee of the City in that person's individual capacity, and neither the members of the City Council of the City nor any officer or employee executing the Bonds shall be liable personally on the Bonds or be subject to any personal liability or accountability by reason of the issuance thereof. No provision, covenant or agreement contained in the Indenture, the Loan Agreement, the Placement Agent Agreement, the Remarketing Agreement, the Bonds or in any other document relating to the Bonds, and no obligation therein or herein imposed upon the City or the breach thereof, shall constitute or give rise to a general obligation of the City or any charge upon its general credit or taxing powers. In the making of the agreements, provisions, covenants and representations set forth in the Indenture, the Loan Agreement, the Placement Agent Agreement, the Remarketing Agreement, the Bonds or in any other document relating to the Bonds, the City has not obligated itself to payor remit any funds or revenues other than the trust estate described in the Indenture. Section 12. Except as herein otherwise expressly provided, nothing in this resolution or in the Indenture expressed or implied, is intended or shall be construed to confer upon any person, other than the City, the owners of the Bonds, and the Trustee, as fiduciary for owners of the Bonds, to the extent expressly provided in the Indenture, any right, remedy, or claim, legal or equitable, under and by reason of this resolution or any provision hereof or of the Indenture or any provision thereof; this resolution, the Indenture and all of their provisions begin intended to be and being -6- for the sole and exclusive benefit of the City, the owners of the Bonds, and the Trustee as fiduciary for owners of the Bonds issued under the provisions of this resolution and the Indenture, and the Borrower to the extent expressly provided in the Indenture. Section 13. In case anyone or more of the provisions of this resolution or of the Indenture or of the Bonds issued hereunder shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other provision of this resolution or of the Indenture or of the Bonds, but this resolution, the Indenture, and the Bonds shall be construed as if such illegal or invalid provision had not been contained therein. The terms and conditions set forth in the Indenture, the pledge of revenues derived from the Loan Agreement referred to in the Indenture, the pledge of the amounts drawn under the Letter of Credit referred to in the Indenturel the creation of the funds provided for in the Indenture, the provisions relating to the application of the proceeds derived from the sale of the Bonds pursuant to and under the Indenture, and the application of said revenues, collateral, and other moneys are all commitments, obligations, and agreements on the part of the City contained in the Indenture, and the invalidity of the Indenture shall not affect the commitments, obligations, and agreements on the part of the City to create such funds and to apply said revenues, other moneys, and proceeds of the Bonds for the purposes, in the manner, and according to the terms and conditions fixed in the Indenture, it being the intention hereof that such commitments on the part of the City are as binding as if contained in this resolution separate and apart from the Indenture. Section 14. All acts, conditions, and things required by the laws of the State of Minnesota, relating to the adoption of this resolution, the issuance of the Bonds, and to the execution of the Indenture and the other documents referred to above to happen, exist, and be performed precedent to and in the enactment of this resolution, and precedent to the issuance of the Bonds, and precedent to the execution of the Indenture and the other documents referred to above have happened, exist, and have been performed as so required by law. Section 15. The members of the City Council of the City, officers, of the City, and attorneys and other agents or employees of the City are hereby authorized to do all acts and things required by them or in connection with this resolution and the Indenture and the other documents referred to above for the full, punctual, and complete performance of all the terms, covenants, and agreements contained int he Bonds, the Indenture and the other documents referred to above, and this resolution. Section 16. The City hereby consents to the distribution of the Placement Memorandum in connection with the sale of the Bonds, in substantially the form on file with the City as of the date hereof, and ratifies the distribution thereof by the -7- Placement Agent; provided that the Mayor may approve such variations, omissions and insertions as are not materially inconsistent with the form approved by this Council on the date hereof and with such changes as shall be necessary, in the opinion of legal counsel, to comply with applicable securities laws. The Placement Memorandum is the sole material authorized by the City for use in connection with the offer and sale of the Bonds, except that copies of the documents referenced above may be provided upon request. Section 17. The Mayor and the City Administrator are authorized and directed to execute and deliver any and all certificates, agreements or other documents which are required by the Indenture, the Loan Agreement, the Placement Agent Agreement, the Remarketing Agreement, or any other certificates or documents which are deemed necessary by bond counsel to evidence the validity of enforceability of the Bonds, the Indenture or the other documents referred to in this resolution, or to evidence compliance with Section 148 of the Internal Revenue Code of 1986, as amended, and to take such other administrative action as is permitted or required by the Indenture, the Loan Agreement, the Placement Agent Agreement and the Remarketing Agreement. All such agreements or representations when made shall be deemed to be agreements or representations, as the case may be, of the City. Section 18. If for any reason the Mayor is unable to execute and deliver those documents referred to in this resolution, any other member of the City Council of the City may execute and deliver such documents with the same force and effect as if such documents were executed by the Mayor. If for any reason the City Administrator is unable to execute and deliver the documents referred to in this resolution, such documents may be executed and delivered by any member of the City Councilor the Assistant City Administrator with the same force and effect as if such documents were executed and delivered by the City Administrator. Section 19. This resolution shall be in full force and effect from and after its passage. ADOPTED this 21st day of April, 1997. CITY OF FARMINGTON, MINNESOTA Mayor Attest: City Administrator -8- The motion for the adoption of the foregoing resolution was duly seconded by Councilmember and, upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon the resolution was declared duly passed and adopted and was signed by the Mayor, whose signature was attested by the City Administrator. -9- -fQ To: Mayor. Council Members, City Administrator ';/v I From: Lee M. Mann, P .E., Interim Asst. City Engineer Subject: South Suburban Medical Center Expansion, Extension of Elm Street to 9th Street Date: April 21, 1997 INTRODUCTION The South Suburban Medical Center has come in with preliminary plans to expand their facilities by adding a clinic on the south side of their existing building. As part of this expansion the Medical Center is petitioning the City to construct street and utility improvements that would extend Elm Street to the east and connect to 9th Street (See attached petition and figure). DISCUSSION The extension of Elm Street to the east is necessary for the Medical Center expansion to occur. The Medical Center is in the process of obtaining the land through which the extension of Elm Street would be routed. In order for the project to go forward, the Council would need to authorize a feasibility study on the road and utility improvements. The feasibility study along with a developers agreement between the Medical Center and the City would be brought to Council for approval, and the Council at that time could authorize the preparation of plans and specifications. In the developers agreement, the Medical Center would agree to pay for all costs associated with the street and utility improvements. As stated on the petition and as is consistent with previous development agreements, the Medical Center would waive their right to a public hearing regarding the assessment of costs for the project. BUDGET IMPACT The Medical Center has agreed through the signing of the petition to pay for the costs of the feasibility study if the project were not to go forward. Otherwise, the entire cost of the project will be the responsibility of the Medical Center. ACTION REQUIRED Authorize the staff to prepare a feasibility study for the proposed street and utility improvements for the easterly extension of Elm Street to 9th Street by resolution. Respectfully submitted, ~/Yl~ Lee M. Mann, P .E. Interim Assistant City Engineer cc: file, Bob Johnson, South Suburban Medical Center CitlJ. of Farminf/.ton 325 Oak Street. Farmintjtonl MN 5502~ · (612) ~63-7111 · Fal( (612) ~63-2591 Petition for Local Improvement Farmington, Minnesota February 27 19 97 To the City Council of Farmington, Minnesota: We, the undersigned, owners of 45 % of the frontage of the real property abutting on , new to be installed street between T.R. 3 and north end of 9th Street hereby petition that the following improvement(s) which is more than 35 % to be constructed as assessable improvement (s) pursuant to Minnesota Statutes, Sections 429.011 to 429.111: Complete new city streets and utilities from T .R. 3 at CSAH 50 to the north end of 9th Street in East Farmington Addition. The Engineer has determined that the cost of a feasibility (preliminary report will not exceed $ 4.000.00 , for which the petitioners hereby agree to pay if the process does not conclude with an assessable improvement. If we, the petitioners, are found to be the owenrs of 100% of the property to be assessed, we hereby waive our right to a public hearing and notice of same and agree to accept an assessment against our property as the Council shall deem appropriate in accordance with Minnesota Statute 429. Print Name Address Signature .. il So. Suburban Medical Center 3410 - 213th St. W., file&! IJ flAM Farmington, MN 55024 , tI I ----i I lL~ : i \ I I ' I ~ ' '. I I I I i -==:::1 Ji ~ ,-=--t 'II' ~L~ r ~Ii .' II , / , .~~ \ ,d i "~ ELM ST~. ''''''~.I......,' ' , , ' . . , , I " ~li[I'n! . -" LJ u 0 , " I ' , I I , H.h , . /' -, .==- ~\ I \. '[ =' "1 d 11: 1 i ~! I ij! I II . '---J I / I / J : // /: i 0J \--", , --1 II II i I il (Y) - I', 1- I I I ! ,~ , '11 I ' I L ...J iLJ .-- I ~ o - -~r-;:;:;/ c:== ---=, r-t- ~, -, I ~~. 'l~.: ~- \ ..--, I 0 \ I , >() PROP ELM ST EXTENSION N 19,172 Sol. I. II' ~ i :! i I .. I I' I I I- I :/ . I _ 'i~_ , \ ~ ,Lj ~ ~ i ' __________ L- ."".".'..'''.'0....''. "'"'^''''R'=?"w'''''''S~'r:~'~~:''''' .._~,tj.-:.:.r.;-",,:"'-"'''''''~'''''''''''' ",,,,"""""', .~.::." -~~"::'_:'~'~"_' ,_:."""i<."'~. "., _ ~;' o T H (J)'." ~ f / / i____ I I I: I I i I ! I ! I I , I. /. I /--.J Proposed RESOLUTION NO. R -97 ORDER FEASIBILITY REPORT PROJECT NO. 97-15 MEDICAL ACCESS ROAD Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota, was held in the Civic Center of said City on the 21 st day of April, 1997 at 7 :00 P.M.. The following members were present: The following members were absent: Member introduced and Member seconded the following resolution. WHEREAS, pursuant to a petition, it is proposed to make the following proposed improvement: PrQject no. 97-15 ; and Description Medical Access Road Location extension of Elm Street WHEREAS, it is proposed to assess the benefited properties for all or a portion of the cost of the improvement, pursuant to M.S. Chapter 429. NOW THEREFORE, BE IT RESOLVED that the proposed improvements be referred to the City Engineer for study and that he is instructed to report to the Council with all convenient speed advising the Council in a preliminary way as to whether it would be best made as proposed or in conjunction with some other improvement and the estimated cost of hte improvement as recom- mended. This resolution adopted by recorded vote of the Farmington City Council in open session on the 21 st day of April, 1997. Mayor day of ,1997. Attested to the SEAL Clerk! Administrator 95 ~Q TO: Mayor and Councilmembers FROM: John F. Erar, City Administrator SUBJECT: Public Improvement Process Capital Project Schedule DATE: April 21, 1997 INTRODUCTION At the April 7, 1997 Council meeting, there was some confusion relative to whether a public improvement hearing or an informational meeting had been scheduled for the Main Street Improvement Project. DISCUSSION As discussed with Council in an earlier work session, a current review of the entire public improvement process by involved staff has again emphasized the need to revise this process to facilitate the efficient progress and cost-effective accomplishment of proposed CIP projects. Further, it is of particular importance that Council be provided with a standard or model process that staff will utilize to advance projects through the various development stages, and the types of official actions necessary to ensure compliance with state statutes. Several key stages in the project development process include the Public Hearing; Ordering of the Public Improvement; and the Preparation of Plans and Specifications. . The Public Hearing is a key decision point in the project development stage with respect to whether the Council will ultimately decide to approve the project, or will reject the project. It is of significant importance relative to whether Council will: 1. Authorize further expenditures of time and funds in the preparation of plans and specifications. 2. Consider whether there is public support for the project 3. Consider the financial implications of attempting the project, i.e. tax. levies, bonding, debt service, tax capacity. 4. Consider Preliminary Special Assessments for affected residents 5. Determine whether to Order the Public Improvement . With respect to official actions Council should take to set or schedule a public hearing, the City Attorney has indicated that all public hearings relative to public improvements should be adopted by Council resolution. CitlJ. of Farminf/.ton 325 Oak Street. Farminfjtonl MN 5502~ · (612) ~63-7111 · Fal( (612) ~63-2591 Mayor and Council Public Improvement Process Page 2 of2 The Public Hearing stage identified as Step 3 in this process will essentially determine the viability of the proposed project. The ordering of the project is effectively a "green" light to authorize the completion of the project by staff. ACTION REQUESTED The attached CIP Project Development and Process Authorization Schedule, as revised, will be reviewed with Council. Approve the CIP Project Development and Process Authorization Schedule (Revision Date 4/16/97) Respectfully submitted, /L./-b John F. Erar /City Administrator CIP PROJECT DEVELOPMENT AND PROCESS AUTHORIZATION SCHEDULE The following process is a Council/staff guideline for authorizing public improvement projects. As this process is controlled by State Statute, and other influencing environmental factors, it is subject to change and should be viewed as a tool to assist the Council and public in understanding the public improvement process used by City staff. Each step in the process, and accomplishment of respective activities would be facilitated by a separate Council meeting. As a result, the process time frame is a significant factor affecting City staff s ability to properly manage and complete approved Council ordered projects within budget and on time. 1. Council Approval of Annual CIP Projects will authorize the following outcomes: a) Staff and/or Consultant preparation of project feasibility studies b) Staff preparation of detailed financial review of project funding sources TIME FRAME: October-November of each preceding year. 2. Presentation of Feasibility Study a) Feasibility Study Components: 1) Review of Project Engineering and Construction Estimates 2) Total Project Costs (All related project costs, i.e. land, soft costs) 3) Project Financial Plan (Engineering/Finance) 4) Fiscal Implications (Finance Department) . If Council accepts Feasibility Study, A Resolution "Accepting Feasibility Study and Setting Date for Public Hearing on the Project" (Engineering Division) would initiate the following: 1) Notices mailed to affected Residents no less than 10 days before Public Hearing. (Engineering Division) 2) Public Hearing Notice is published. Two publications one week apart, with second publication no less than three days before hearing. (Administration Department) Revision Date: 04/16/97 3) Authorization to develop a Preliminary Assessment Roll, if any, for the Public Hearing. (Finance Department) TIME FRAME: February-March-April-May of current year. 3. Council holds a Public Hearing for following purposes: a) Presentation of Project (Engineering Division) b) Presentation of Preliminary Special Assessment Roles and Financing Implications (Finance Department) c) Council to hear Affected Resident Input d) Council determines whether to "order" the public improvement . A Council Resolution is drafted "Ordering the Project and Authorizing Preparation of Plans and Specifications" (Administration). Council may ORDER THE IMPROVEMENT after the public hearing is closed or at a subsequent Council Meeting within 6 months of the public hearing date. (Statutory Requirement - Council Resolution ordering project must be approved on 4/5 Council vote) . If Council decides to reject the project, a Council vote should be taken to officially determine the final status of the project. TIME FRAME: April-May-June of current year 4. Plans and Specifications are presented to Council for approval. (Engineering Division) . A Council Resolution is drafted authorizing the following: (Administration) a) Accepting and Approving Project Plans and Specifications b) Authorizing the Advertisement for Project Bids. Bids are developed and invitation to Bid is processed. Bid opening date is no less than 3 weeks after publication. (Engineering) TIME FRAME: May-June of each year 5. Council Acceptance of Project Bids and Awarding of Contracts would authorize the following outcomes: Revision Date: 04/16/97 . A Council Resolution is drafted "Accepting Project Bids and Awarding Contracts" (Administration) . If Special Assessments are financing a portion of the Project, A Council Resolution "Setting the Special Assessment Hearing for Project #" is adopted at this same meeting. (Administration) . Initiation of Project Construction and work (Engineering) TIME FRAME: April-May-June-July of current year. 6. If Special Assessments would finance a portion of the projects costs, Council Holds a Special Assessment Hearing to review the following: a) Affected Property owners would be officially notified no less than two weeks prior to Special Assessment Hearing. ( AdministrationlEngineering) b) Public Notice is published no less than two weeks prior to Special Hearing (AdministrationlEngineering) c) Staff prepares a proposed roll and Council Approves Final Assessment Roll (Finance Department) d) Council consideration of Assessment Appeals and Requested Deferrals filed prior to hearing or during the hearing. e) Meets M.S. Chapter 429 statutory requirements . A Council Resolution is drafted "Adopting Final Special Assessment Roll"(Administration), and is adopted at this meeting. TIME FRAME: August-September-October of current year. 7. Project Completion a) Council Acceptance of Project b) Final Presentation and Review of Project Costs versus Project Budget by Finance Department. TIME FRAME: Upon completion of project. Revision Date: 04/16/97 TO: Mayor and City Co~1 _ City Administrator r c..,...r Robin Roland, Finance Director FROM: SUBJECT: General Obligation Water Revenue Bonds of 1997 DATE: April 21, 1997 INTRODUCTION In order to construct the 1.5 Million Gallon Reservoir (Water Tower), the City Council at their meeting April 7, 1997 authorized the sale of General Obligation Revenue Bonds to fund the project. DISCUSSION Competitive bids for the bonds were received today in the offices of Juran & Moody. Preliminary analysis anticipated a net interest cost of 5.50%, with an anticipated total interest cost of $987,182. Piper Jaffray was the low bidder at a net interest rate of 5.39%, making the total interest cost $985,262 . Tom Truszinski from Juran & Moody is present this evening to discuss the bids and the specifics of the bond issuance. ACTION REQUIRED On the basis of the competitive bids received, the City Council should approve the resolution awarding the sale of the $2,140,000 General Obligation Revenue Bonds to Piper Jaffrey at a net interest rate of 5.39%. Respectfully submitted, ,~~#J / . Robin Roland Finance Director <2fb CitlJ. of Farminf/.ton 325 Oak Street. FarminlJtonl MN 55024 · (612) ~63-7111 · Fal( (612) 463-2597 Sc- FROM: Mayor and City Council City Administrator ~ Robin Roland, Finance Director TO: SUBJECT: Purchase Front End Loader DATE: April 21, 1997 INTRODUCTION On March 17, 1997 the City Council authorized advertisement for bids on a new 1997 Front End Loader which was included the 1997 Budget. DISCUSSION Bids were received on the Loader from three different vendors, on April 17, 1997 at 2:00 P.M. The low bidder on the equipment with the three options was St. Joseph Equipment with the Case model 721 Bat $140,011.29. The second lowest bid was from ROO Equipment on a John Deere 624G at $140,571.48. Costs of scheduled maintenance were included by all bidders, as were guaranteed "buyback" prices. A schedule of the bids is attached to this memo. Analysis of the bids, on the basis of actual hard costs paid to the vendor, indicates that the Case Loader (a 505 cubic inch engine, 30,096 lb. Piece of equipment) is the low bid in comparison to the John Deere Loader (a 414 cubic inch engine, 28,965 lb. Piece of equipment). Although both meet minimum specs, the Case is a larger unit. The costs of scheduled maintenance are what the vendor believes will be the cost to the buyer for items like oil changes, hydraulic fluid and fuel economy, and is, essentially, an estimate. These items are outlined in the bids to ensure equality between the bidders, but are difficult to compare on a point-to-point basis on equipment of slightly different specifications (as in this case). BUDGET IMPACT The 1997 Budget allowed for $150,000 to be spent on this Loader. The low bid is almost $10,000 less than the amount budgeted. Funding for the Loader is in the form of $155,000 Certificates of Indebtedness to be issued through negotiated sale at an interest rate of 4.5%. ACTION REQUIRED 1) Accept the low bid by St. Joseph Equipment for purchase of the New 1997 Four Wheel Loader at $140,011.29. 2) Approve the resolution for the sale of $155,000 Certificates of Indebtedness to fund the purchase. aes C~UAZ'Y bitted, ~U . ( / Robin S. Roland Finance Director CitlJ. of Farminl}.ton 325 Oak Street · Farmintjtonl MN 5502~ · (612) ~63-7111 · Fal( (612) ~63-2591 i I I-- to 0) 0)1 I I en en ~ ..... ~I i 0 Z ..... Ili U 0 " 0) .....1 LO ('I) 0, ...J F ci V. ., ~ a.. V LO ~I 0 ..... ..... 0 ~ i I-- I to " V c: LO ('I) ~ 0 Ul Ili 0 ..... c: LO 0 to X .Q C\l ('I) C\l CO I - a. 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C\l a C\l 0:: " 0:: " Z W W Z W W J: ~ en J: ~ en 0 <( 0 <( ., U U ., U U 1 I 1 I-- I-- Z Z W W ~ ~ 0:: a.. a.. 0 I-- :)1 I-- :) a Z 0 Z 0 Z W W W W W ~ cj J: ~ cj J: > a.. Z a.. a.. Z a.. :) 0:: W :) 0:: W 0 W (J) 0 W (J) W ...J 0 W ...J 0 0 C> ., 0 C> ., a W ....= a W ....= 0:: N (J) I 0:: N (J) ..... Q) TO: Mayor and City Council City Administrator~ I Robin Roland, Finance Director FROM: SUBJECT: Adopting Assessment RolI- Industrial Park II DATE: April 21, 1997 INTRODUCTION Construction of the second phase of the Farmington Industrial Park infrastructure has been completed and assessment of the appropriate costs to benefiting properties under Minnesota Statute 429 may now take place. DISCUSSION The City of Farmington issued $850,000 of Improvement Bonds to fund the infrastructure improvements in October 1996. Levying assessments on the benefiting properties within the project area will fund the debt service payment on these bonds. Property owners in the Industrial Park Phase II include Lexington Standard, Bernard "Babe" Murphy and the City of Farmington HRA. Wally Sapp and Tim Milner have options with the HRA on certain properties in Phase II. Waivers of hearing and appeal rights on these proposed assessments have been received verbally from all property owners. By waiving their rights, the property owners accept the proposed assessments against their property. BUDGET IMPACT A schedule of the Final Assessment Roll is attached. Total project costs were $820,833, of which $138,012 benefited properties in Phases 3 & 4 of the Park (and will be assessed against those properties when those phases are developed). Total Phase 2 assessable costs are $682,821.51 or $30,293.77 per acre. ACTION REQUIRED Adoption of the attached resolution, Assessment Roll for Industrial Park Phase II properties, contingent on obtaining written waivers. Respectfully submitted, %kJ Robin Roland Finance Director CitlJ. of Farminf/.ton 325 Oak Street. Farmintjtonl MN 5502~ · (612) ~63-7111 · Fal( (612) 463-2591 CITY OF FARMINGTON FINAL ASSESSMENT ROLL INDUSTRIAL PARK II ASSESSMENT LEGAL P.I.D. ACRES AMOUNT LOT 2, BLOCK 1 14-25851-020-01 8.84 267,796.90 LOT 1, BLOCK 4 14-25851-010-04 1.99 60,284.60 LOT 1, BLOCK 1 14-25851-010-01 4.66 141,168.97 (2) LOT 1, BLOCK 2 14-25851-010-02 2.05 62,102.24 (1 ) LOT 1, BLOCK 3 14-25851-010-03 5.00 151,468.80 TOTAL 22.54 682,821.51 ASSESSMENT PER ACRE 30,293.77 (1) LEXINGTON STANDARD (2) JIT POWDER COATING PROPOSED RESOLUTION R - 97 ADOPTING ASSESSMENT ROLL FOR INDUSTRIAL PARK PHASE 2 INFRASTRUCTURE IMPROVEMENTS pursuant to due call and notice thereof, a regular meeting of the City Council and the city of Farmington, Minnesota, was held in the Civic Center of said City on the 21st day of April, 1997 at 7:00 P.M. The following members were present: The following members were absent: Member introduced and Member seconded the following resolution: WHEREAS, pursuant to proper notice duly given by the Council, the Council has met and heard and passed upon all objections to the proposed assessments for the following improvement: Industrial Park Phase 2 Infrastructure Improvements Description Assessment Amount Lot 2, Block 1 (14-25851-020-01) Lot 1, Block 4 (14-25851-010-04) Lot 1, Block 1 (14-25851-010-01) Lot 1, Block 2 (14-25851-010-02) Lot 1, Block 3 (14-25851-010-03) $267,796.90 60,284.60 141,168.97 62,102.24 151,468.80 NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF FARMINGTON, MINNESOTA: 1. Such proposed assessment, as amended, a copy of which is on file in the office of the City Clerk, is hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 2. Such assessment shall be payable in equal annual installments extending over a period of 15 years, and shall bear interest at the rate of 7.00% per annum from the date of the adoption of this assessment resolution until December 31, 1997. To each subsequent installation when due shall be added interest for one year on all unpaid installments. 3. The owner of any property so assessed may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City Treasurer, except that no interest shall be charged if the entire assessment is paid within 30 days from the adoption of this resolution; and he may, at any time thereafter, pay to the City Treasurer the entire amount of the assessment remaining unpaid, with interest accrued to December 31, of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the next succeeding year. 4. The Clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be extednded on the property tax lists of the County. Such assessments shall be collected and paid over in the same manner as the other municipal taxes. This resolution adopted by recorded vote of the Farmington City Council in open session on the day of , 1997. Mayor Clerk/Administrator Attested to the day of ,1997. FROM: Mayor, Councilmembers and City Administrato~ Lee M. Mann, P.E. Interim Assistant City Engineer ~b TO: SUBJECT: Henderson Area Storm Sewer Feasibility Study, Project 96-2 DATE: April 21, 1997 INTRODUCTION Transmitted herewith is the feasibility report for the construction of storm sewer in the Henderson Area, Project 96-2, for your review. DISCUSSION The construction of storm sewer in the Henderson area would address drainage and groundwater issues that have been identified in Farmington's 1993 Facilities Plan. Currently, this area has no storm sewer, large areas of overland flow and high groundwater. The lack of an adequate drainage system contributes to street dete- rioration and presents safety concerns with ponding and ice, especially at the low area on Hickory between 7th and 8th Street. This report discusses the feasibility of constructing storm sewer between 7th and 10th Street generally along the alignment of Hickory Street. This report provides detailed cost estimates, financial review, proposed assessments, plan views of the improvement area and a project schedule. BUDGET IMPACT The Henderson Area Storm Sewer improvements \vere approved in the 1997 Capital Improvement Plan. The total estimated project cost is $397,900. Special assessments are presented in this study. ACTION REQUESTED . 1) Council decision whether to approve or reject the Henderson Area Storm Sewer project as presented. 2) If the project is approved: . Accept the feasibility study. · Adopt the attached resolution order a Public Hearing to be held on May 19, 1997. Respectfully submitted, ~1J1~ Lee M. Mann, P .E. Interim Assistant City Engineer cc: file CitlJ. of Farmint)ton 325 Oak Street. FarmintJtonl MN 5502~ · (612) 463-7111 · Fal( (612) 463-2591 Proposed RESOLUTION R - 97 ACCEPTING FEASIBILITY REPORT/ORDERING PUBLIC HEARING PROJECT 96-2, HENDERSON AREA STORM SEWER Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of F armington, Minnesota, was held in the Civic Center of said City on the 21 st day of April, 1997 at 7 :00 P.M.. The following members were present: The following members were absent: Member introduced and Member seconded the following: WHEREAS, pursuant to approval of the 1997 Capital Improvement Plan by the Council, a report has been made by the City Engineer with reference to the following improvement; Project No. 96-2 ;and Description Storm Sewer Improvements Location Henderson Area WHEREAS, this report was received by the Council on April21, 1997. NOW THEREFORE, BE IT RESOL YED that, 1. Said feasibility report is hereby accepted. 2. A public hearing is set for May 19, 1997 at 7:00 p.m. to discuss the proposed project. This resolution adopted by recorded vote of the Farmington City Council in open session on the 21 st day of April, 1997. Mayor Attested to the day of ,1997. City Administrator/Clerk SEAL 62 I .~ ~ I ~t ,II ,. PDE ITllttT 1'1 ~ r--, ".' L--I Ji . c:cUN1'YRD.n ,:i'jjl~'i i '1 .,. . "T'E:: ; i i., 11="7/':"'''''' ':""'., :"j,!) ... ,:~ ' ',.. r,f .' : . ...""li ".,....~~,....'. '~.'''L_'':: ,I......l......j~ ,;~...~~. .ir......;i:;;,~~,:::;}.~::,~:::,....:~....t~..?..!,:// l~'/j.:J~. )i.:.:.:..~j::.:l;.;,.;;,. :~llT' ....."..~,..J.: .1 ".,' ,j't:' , . ,.................1 I." .. ,.......1 , ~'~;j1t:,:,::[::~:,;;:::~l/ i:(l~Ij.....Jt'JI:'::::![:...~,.....j[:...:..~.... ~i... .!i!;;: E.'.'...":"'......,...., 'Q;J.l!a. . ! ,.i:i.i.b::i ,..:.t -.....,.. ... , ,!:if ! . 2000 , ~t-TT- 3~~~~Ti i~t. ~-LLLcl:J' s .'j t.:~:,S::!::U E~(:::rli:.: l,r:~==L,.., L P ROJ ECT Lon., ATION '''',\~.D: L_LJ L_L-l "l I \,,;, ................_m~lJlrl:-_ ~~" I ,1iL.J.Jj t:1LU-.~J=.,., 1""-' ..~l f '1~1' 'H~'\m 1.....1' F~:j' 'II~-; J II 'I '-1 I....rt..tt "r'--""',._ ,e; ~"~4 I....J , .- --'1 r-T-T- .-- ~~r,L_~~l i!1 ---~i\mh-~i.~n~:' -_= I i \f' ! I' .j , , i I I I I I i [ CASTU: IIDClC TIN . .. "if .: Ii ! '1 II I' il. i ~... J II l J l !i i / !' ,I f' -, , : f r II) o i i 1 000 I ~_ Scdl~ in feet I i I I I l ED FARMINGTON, MINNESOTA HENDERSON STORM SEWER FIGURE . 1 .fI. Bone8troo .... R08ene II Anderlik & 1\11 A88ociate8 PROJECT LOCATION 97-79 DATE 4/15/97 couu. 14179 ~ INTRODUCTION The City Council has requested this report to determine the feasibility of providing storm sewer service to the Henderson Area of Farmington including the location of an existing low point located on Hickory Street midway between 7th Street and Highway 3. This report has been ordered to investigate the existing drainage conditions and determine what improvements need to be made. The report also addresses the costs associated with the proposed improvements. PROJECT DESCRIPTION In May of 1993, the City of Farmington's Facilities Plan indicated that the Henderson area had no storm sewer, large areas of overland flow and a-high ground water elevation. The Facilities Plan proposed installing storm sewer and a sump pump discharge line to reduce the overland flow, lower the ground water elevation and provide a discharge line for sump pumps. The Prairie Waterway, which was constructed after the Facilities Plan was published, appears to have stabilized the ground water table in the Henderson Area. As a result, the discharge of sump pumps has been reduced a great deal and does not appear to be a problem any longer. Knowing this information, we have decided to remove the sump pump discharge line from the project. It may be necessary to implement a project in the future for the sump pump discharge lines if the problem reoccurs. To guard against possible future groundwater fluctuations, a drain tile will be constructed along with the storm sewer as suggested in the Facilities Plan. This drain tile will connect into storm sewer structures. The storm sewer will then convey the water to the Prairie Waterway. The combination of storm sewer and drain tile in the Henderson Area will reduce overland flow and stabilize the groundwater table at the same subsurface elevation as the storm sewer. This will result in a lengthened life of streets, improved drainage at intersections, less ice buildup and safer driving conditions, less infiltration into the sanitary sewer, less flooding of basements and the elimination of flooding on Hickory Street between 7th Street and Highway 3. 3 Storm Sewer Improvements The proposed storm sewer (see Figure 2) will connect into the existing 36" storm sewer in place at 10th and Hickory Streets. The storm sewer will run along Hickory Street to 9th Street. Catch basins will be constructed at this intersection. The storm sewer \\'ill then run between the townhomes and into the pond at the northwest comer of the Townsedge Mall. From the pond, the sewer will be jacked beneath T.H. 3 to the west service road. From here it will be open cut to Hickory Street, and then to the low point on Hickory. At the low point, the existing dry well catch basins will be removed and new catch basins will be installed and connected to the storm sewer. The storm sewer will then run to the intersection of Hickory and 7th Streets. Catch basins will be installed at this intersection as well as a manhole that will be the connection point for future storm sewer constructed to the north. The intersection of 7th and Hickory is the end point of this project. The drain tile will be laid in the same trench as the storm sewer along the entire route and will be connected to th~ storm sewer at the manhole locations. Street Improvements Street construction will be limited to repairing areas that are disturbed during construction. Repairs will consist of a two foot granular subgrade, eight inches of Class 5 aggregate base and four inches of bituminous surfacing. The existing curb and gutter will be replaced where catch basins are to be installed. 4 Feasibility Study for 1997 Street and Utility Improvement Project Project No. 96-2 Henderson Area Storm Sewer I hereby certify that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly registered professional engineer under the laws of the State of Minnesota. ~ M/YzvnA/l/ Lee M. Mann, P.E. Date: April 21, 1997 Reg. No.: 24541 City of Farmington Engineering 325 Oak Street 612-463-1600 INDEX Index Introduction Project Description Project Costs and Assessments Conclusions and Recommendations Appendix - Cost Estimates Figure 1 .... Project Location Figure 2 . . .. Henderson Area Storm Sewer 2 PROJECT COSTS AND ASSESSMENTS The project costs for these improvements are outlined in this section. The itemized cost estimates are provided in the appendix. The costs include 10% for contingency and 25 % for legal, engineering and administration of this project. The indicated unit prices are as projected for the 1997 construction season. (ENR 5470 Mpls.) ESTIMATED PROJECT COSTS Trunk Storm Sewer.. . . .. .. .. .. .. . .. . .. . .. . .. . .. .. .... $263,900 Lateral Storm Sewer.................................. $111 ,200 Easement Acquisition (estimated) .................... $20,000 Testing/Crew Costs .......... ... ......... ..... ........... $2.800 Total Project Cost .................................... $397,900 ASSESSMENTS The lateral storm sewer costs will be assessed 100% against the benefiting properties per the assessment policy. This shall include all of the lateral storm sewer main, catch basins, manholes and restoration over the lateral lines . The estimated assessment for benefiting residential properties is $1531.00. The estimated assessment for commercial, multi-family and the MnDOT right of way is $6568 per acre. A breakdown of project costs and assessments is below. PROJECT COST BREAKDOWN Funding Item Total Cost Assessed City MnDOT* Trunk Storm Sewer $263,900 $216,400 $47,500 Lateral Storm Sewer $111,200 $91,200 $20,000 Easement Acquisition/Estimated $20,000 $20,000 Testing/Crew Costs $2.800 $2.800 $397,900 $91,200 $239,200 $67,500 * MnDOT's estimated share is based on the drainage area of T.H. 3 benefiting from the improvements, calculated per their cost sharing procedures, which comes to 18% of the total storm sewer cost. 5 CONCLUSIONS AND RECOMMENDATIONS The project as reviewed herein is feasible as it relates to general engineering principles and construction procedures. The feasibility of the project as a whole is subject to the financial review. Based on information contained in this report, it is recommended that: 1. This report be adopted by the City of Farmington as a guide for construction of the storm sewer improvements. Council to decide whether to approve or reject the Henderson Area Storm Sewer Project as presented. It is recommended that if the Council approves the project, that the approval is contingent upon MnDOT's participation in the costs of the project. If MnDOT chooses not to participate, it is recommended that the project not go forward until such time MnDOT agrees to share in the costs. Negotiations with MnDOT are in progress. 2. . The City conduct a legal and fiscal review of the proposed project prior to a public hearing. 3. A public hearing be held as required by Minnesota Statute 429. The property owners benefiting from the storm sewer improvements should be notified for hearing purposes. 4. The following schedule be implemented for the project*: · Receive Feasibility Report/ / Authorize Public Hearing............ April 21, 1997 · Hold Public Hearing/Authorize Plans and Specifications ............................................................. May 19, 1997 · Approve Plans and Specifications, Order the Project and Authorize Advertisement for Bids..................................... June 16, 1997 · Bid Date............................... .... .......... ....... ................ July 17, 1997 · Council Accept Bids/Declare Costs/Award Contract.............. July 21, 1997 · Start Construction...... .. .. .. .. .. .. .. .. .. . .. . .. .. . .. .. .. .. .. . .. .. .. .. .. .. August 4, 1997 · Complete Construction.................................................. October 3, 1997 * It should be noted that this schedule is dependent on cooperation from the property owners from whom easements need to be obtained. 6 Appendix 7 Preliminary Project Cost Tracking Project - Henderson Storm Sewer Oescsiption ":A Project- Storm Sewer Installation Project No,- 96-2 Items Da.. Name of Company Cost ,. Construction Costs $ 272.800,00 Subtotal = $ 272.800.00 2. Soil Borings Allied Testing Subtotal = $ 3. Survey Work Estimate Subtotal = $ . 4. Wetland Delineation & Mitigation Estimate Subtotal = $ 5. Pennits (list) Subtotal = S 6. Change Orders $ . Subtotal = $ 7. Environmental Studies, testing and monitoring Subtotal . $ - Total Construction Costs (Totalolltoms 1.7) Subtotal = $ 272.800.00 8. Contingencies 10 % $ 27,280.00 (COMi'lgences and Total Construction Costs) Subtotal = $ 300,080.00 9. legal, Administrative and Engineering (25%) S 75.020.00 (Total of Items 1.9) Subtotal = $ 375,100.00 10. T esling Services Estimate $ 1,000,00 Subtotal = $ 1.000.00 1,. EasemenVRight of Way Acquisition (appraisers) Pond and Mall Area: .25 acres $ 20,000.00 Subtotal . $ 20,000,00 12. Demolition/moving Subtotal = $ 13. Outside Consultants Consulting Engineer Bond - No estimate available Subtotal = $ 14. SWCD. plats mainly ~ development cost NA Subtotal = $ 15. Street & Utility crew costs $ Jo"" - $51.50/hr 20 Hours $ 1,030.00 Bill. $36,OOIhr 20 Hours $ 720,00 Subtotal = $ 1.750,00 ITotal Estimated Project Cost = (Does not include Bond cost) $ 397,850.00 I HENDERSON STORM SEWER ESTIMATED PROJECT COSTS-TRUNK ONLY SECTION EST. UNIT TOTAL ITEM UNIT QUAN. PRICE PRICE 36" RCP, CL.2 LF 500 $ 60.00 $ 30,000.00 30" RCP, JACKED WITH CASING LF 180 $ 400.00 $ 72,000.00 30" RCP, CL. 3 LF 310 $ 45.00 $ 13,950.00 6.5' DIA MH, 0-8 FT DEEP, wI R1642B EA 2 $ 2,600.00 $ 5,200.00 6.5' DIA. MH, OVER 8' DEEP LF 4 $ 220.00 $ 880.00 5.5' DIA MH, 0-8 FT DEEP, wI R1642B EA 2 $ 2,500.00 $ 5,000.00 5.5' piA. MH, OVER 8' DEEP LF 2 $ 150.00 $ 300.00 4.5' D1A CBMH, 0-8 FT DEEP, wI R4342 EA 1 $ 1,800.00 $ 1,800.00 36" L.R. BENDS . EA 4 $ 400.00 $ 1,600.00 36" APRON wI TRASH GUARD EA 1 $ 2,000.00 $ 2,000.00 30" APRON wI TRASH GUARD EA 1 $ 1,600.00 $ 1,600.00 RIP RAP IN PLACE CY 40 $ 50.00 $ 2,000.00 6" PERFORATED DRAINTILE wI SOCK LF 810 $ 5.00 $ 4,050.00 IMPROVED PIPE FOUNDATION MATERIAL TN 10 $ 10.00 $ 100.00 POND EXCAVATION CY 1000 $ 5.25 $ 5,250.00 WETLAND SEEDING AC 0.2 $ 2,200.00 $ 440.00 SAWCUT BITUMINOUS PAVEMENT LF 1250 $ 3.00 $ 3,750.00 REMOVE 8HUMlNOUS PAVEMENT SY 1040 $ 2.05 $ 2,132.00 REMOVE AND REPLACE CONC,VALLEY GUTTER SF 60 $ 10.00 $ 600.00 REMOVE AND REPLACE CONC. SLAB SF 300 $ 10.00 $ 3,000.00 REMOVE AND REPLACE MAIL BOX UNIT LS 1 $ 250.00 $ 250.00 REMOVE AND REPLACE 1 O'x15' SLAB wI FENCE LS 1 $ 600.00 $ 600.00 REMOVE AND REPLACE 8' CHAIN LINK FENCE LF 40 $ 15.00 $ 600.00 SEED AND FERTILIZER AC 0.06 $ 5,000.00 $ 300.00 SELECT GRANULAR FILL CY 700 $ 8.00 $ 5.600.00 REMOVE AND REPLACE TREES EA 3 $ 250.00 $ 750.00 CL. 5 GRAVEL BASE TN 470 $ 8.00 $ 3.760.00 BITUMINOUS MATERIAL FOR TACK COAT GL 45 $ 1.50 $ 67.50 2" BITUMINOUS BASE COURSE TN 120 $ 29.00 $ 3,480.00 2" BITUMINOUS WEAR COURSE TN 120 $ 30.00 $ 3,600.00 Construction Cost $ 174,659.50 10% Contingencies $ 17,465.95 subtotal $ 192,125.45 25% Legal, Eng., Admin. $ 48,031.36 Total $ 240,156.81 HENDERSON STORM SEWER ESTIMATED PROJECT COSTS - TRUNK AND LATERAL SECTION EST. UNIT TRUNK LATERAL TOTAL ITEM UNIT QUAN. PRICE COST COST PRICE 36" RCP. CL.2 LF 370 S 60.00 S 10,360 S 11.840 $ 22.200 27" RCP. CL. 3 LF 260 S 40.00 S 2.080 $ 8,320 $ 10.400 12" RCP. CL. 5 LF 120 S 26.00 S - $ 3,120 $ 3.120 6.5' DIA MH, 0-8 FT DEEP. wI R1642B EA 1 S 2,600.00 S 1.100 $ 1.500 $ 2.600 6.5' DIA. MH. OVER 8' DEEP LF 2 S 220.00 S 440 $ - $ 440 5.0' DIA MH. 0-8 FT DEEP. wI R1642B EA 2 S 2.400.00 $ 1.800 $ 3,000 $ 4.800 5.0' DIA. MH. OVER 8' DEEP LF 1 S 130.00 S 130 $ - $ 130 4.5' DIA MH. 0-8 FT DEEP. wI R1642B EA 1 S 1,800.00 $ 300 $ 1.500 $ 1.800 5.0' DIA CBMH. 0-8 FT DEEP. wI R3067V EA 1 $ 2.400.00 $ 900 $ 1.500 $ 2.400 5.0' DIA. CBMH. OVER 8' DEEP LF 1 S 150.00 $ 150 $ - $ 150 STD 2' x 3' CB wI R3067V EA 6 S 1.100.00 $ - $ 6.600 $ 6.600 CONNECT TO EX STORM SEWER EA 1 S 500.00 $ - $ 500 $ 500 6" PERFORATED DRAINTILE wI SOCK LF 750 S 5.00 $ - $ 3.750 $' 3.750 IMPROVED PIPE FOUNDATION MATERIAL TN 10 S 10.00 $ - $ 100 $ 100 REMOVE EXISTING CATCH BASINS EA 2 S 500.00 $ . $ 1,000 $ 1.000 SAWCUT BITUMINOUS PAVEMENT LF 1260 S 3.00 $ - $ 3.780 $ 3.780 REMOVE BITUMINOUS PAVEMENT SY 1570 S 2.05 $ - $ 3.219 $ 3.219 REMOVE AND REPLACE B618 CONC. C&G LF 200 S 18.00 $ - $ 3.600 $ 3.600 REMOVE AND REPLACE CONC.VALLEY GUTTER SF 180 S 10.00 $ - $ 1,800 $ 1.800 SEED AND FERTILIZER AC 0.02 S 5.000.00 $ - $ 100 $ 100 SELECT GRANULAR FILL CY 1100 S 8.00 $ - $ 8,800 $ 8.800 CL. 5 GRAVEL BASE TN 700 S 8.00 $ - $ 5.600 $ 5.600 BITUMINOUS MATERIAL FOR TACK COAT GL 74 $ 1.50 $ - $ 111 $ 111 2" BITUMINOUS BASE COURSE TN 180 S 29.00 $ - $ 5.220 $ 5.220 I 2" BITUMINOUS WEAR COURSE TN 180 S 30.00 $ - $ 5,400 $ 5.400 I REGRADE ALLEY BEHIND DENTIST OFFICE LS 1 S 500.00 $ - $ 500 $ 500 I Construction Cost $ 17 .260 $ 80,860 $ 98,120 10% Contingencies S 1.726 $ 8.086 $ 9.812 subtotal $ 18.986 $ 88.945 $ 107.931 25% Legal. Eng.. Admin. $ 4,747 $ 22,236 $ 26,983 Total Project Cost $ 23.733 $ 111.182 $ 134,914 I L co -...J I -...J (0 :r: > (f) rr1 -f z ::;;0 0 (1 :s::: ::;u rr1 Z 3:: ::;;0 G) (/) -I 0 0 (f) z Z r'1 . =E ~ :s::: r'1 0 Z ::;u ::;;0 z 3:: rr1 (/) (/) 0 rr1 ~ =e rr1 ::;;0 o ~ rrI ~ ......... U1 ......... 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' , !I ----+-----------------------i------------------~---------------------........L-------------------n 'I " 'I H ;1 " " I il " :, " " ._____L_m_____m___________m__~~ *, !en :n :0 !CO i__ P '........ 'co :~ o ,......." (5 I\.) o o -------z--------------- 9TH ~TREET 18 1 STRE ~ TO: Mayor, Councilmembers, City Administrato~ FROM: Lee Smick, Planning Coordinator SUBJECT: Height Regulations for Airspace Safety - Ordinance DATE: April 21, 1997 INTRODUCTION The proposed ordinance will amend Title 10, Chapter 5 by adding Section 2 to include a requirement to notify the Federal Aviation Administration and the Minnesota Department of Transportation when a proposed structure of two hundred feet or more above ground level is located within the boundaries of the City of Farmington. DISCUSSION The proposed amendment will meet the Metropolitan Council's requirements regarding the 714 acres of MUS A expansion in Farmington and addresses airspace safety near the Airlake Airport. The amendment will provide a notification process to be followed when a structure is proposed to be two hundred feet or more above ground level within the boundaries of the Farmington. The ordinance will insure that approval of the proposed structure has been reviewed by the Federal Aviation Administration and the Minnesota Department of Transportation. The amendment also references Section 10-6-20(F) stating the requirement for a maximum height of two hundred feet for towers. The reference was included to address tower structures in airspace zones and exhibit maximum height restrictions for these structures. The Planning Commission has reviewed and approved the proposed amendment. The City Attorney has recommended that clarification of the language for notification and approval by both ~eferenced bodies be revised and the revisions have been reflected in the attached ordinance. The City Attorney has also recommended the deletion of a reference for required tower heights near the Airlake Aiport because this information already exists in the City Code. This revision has also been reflected in the attached ordinance. ACTION REQUIRED Approve the Height Regulations for Airspace Safety amendment. q~ CitlJ. of Farmint}.ton 325 Oak Street · Farmintjton, MN 5502~ · (612) ~63-7111 · Fal( (612) 463-2591 Respectfully submitted, ~ Lee Smick Planning Coordinator PRO P 0 SED CITY OF FARMINGTON DAKOTA COUNTY, MINNESOTA ORDINANCE An Ordinance Amending Title 10, Chapter 5 - Height Regulations THE CITY COUNCIL OF THE CITY OF FARMINGTON HEREBY ORDAINS AS FOLLOWS: SECTION I: Title 10, Chapter 5 - Height Regulations - shall be amended by adding (underlined) Section 2 as follows: 10-5-2: Height Regulations for Airspace Safety. Any person(s) proposing a structure of two hundred feet (200') or more above ground level located within the City shall notify and obtain the approval of the Federal Aviation Administration and the Minnesota Department of Transportation. SECTION II: After adoption, signing and attestation, this ordinance shall be published one time in the official newspaper of the City and shall be in effect on and after the day following such publication. Enacted and ordained the 21st day of April, 1997.