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HomeMy WebLinkAbout12.16.19 Council Packet CITY OF Meeting Location: FARM I NGTONFarmington City Hall 430 Third Street Farmington, MN 55024 CITY COUNCIL REGULAR MEETING AGENDA December 16, 2019 7:00 P.M. Action Taken 1. CALL TO ORDER 7:00 P.M. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA 5. ANNOUNCEMENTS/COMMENDATIONS 6. CITIZEN COMMENTS/RESPONSES TO COMMENTS(This time is reserved for citizen comments regarding non-agenda items.No official action can be taken on these items. Speakers are limited to five minutes to address the city council during citizen comment time.) 7. CONSENT AGENDA a) Approve Minutes of the December 2, 2019, City Council Meeting— Administration Approved b) Approve Minutes of the December 2, 2019, City Council Work Session— Administration Approved c) Accept Resignation Rambling River Center Advisory Board— Administration Accepted d) Accept Resignation Rambling River Center Advisory Board— Administration Accepted e) Adopt Resolution Approving a Gambling Event Permit for the Knights of Columbus—Community Development R46-19 f) Approve 2020 Dakota County Sentence to Service Contract—Parks Approved g) Adopt Resolution Accepting a Donation from the Farmington Sons of the American Legion to the Rambling River Center—Parks R47-19 h) Approve the Update of the GIS System—Public Woks Approved i) Approve a Professional Services Contract for the Siting and Feasibility Study of a New Water Tower—Public Works Approved j) Approve a Contract with the City of Red Wing for Solid Waste Processing— Public Works Approved k) Approve Encroachment Agreements Related to Mystic Meadows—Public Works Approved 1) Approve Bills - Finance Approved REGULAR AGENDA 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS,REQUESTS AND COMMUNICATIONS 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) Adopt Resolution Issuance and Sale of General Obligation Equipment Certificates, Series 2020A R48-19 b) Adopt Resolution 2040 Comprehensive Plan R49-19 c) Adopt Resolution Prairie Waterway First Addition Final Plat R50-19 13. CITY COUNCIL ROUNDTABLE 14. ADJOURN CITY OF O 430 Third St., Farmington, MN 55024 FARM I NGTON © 651-280-6800 FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Approve Minutes of the December 2, 2019 City Council Meeting-Administration DATE: December 16, 2019 INTRODUCTION Attached for your review are the minutes of the December 2, 2019 city council meeting. DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED Approve the minutes of the December 2, 2019 city council meeting. ATTACHMENTS: Type Description © Backup Material December 2, 2019 City Council Minutes CITY OF FARMINGTON CITY COUNCIL MINUTES REGULAR MEETING DECEMBER 2, 2019 1. Call to Order Mayor Larson called the meeting to order at 7:00 p.m. 2. Pledge of Allegiance Troop 116 led those in attendance in the Pledge of Allegiance. 3. Roll Call Present-Larson, Bernhjelm, Craig, Donnelly and Hoyt Absent-None Staff Present-Administrator McKnight, Community Development Director Kienberger, Finance Director Malecha, Public Works Director Gehler, Parks and Recreation Director Distad, Human Resources Director Gabbard, Police Chief Rutherford and Human Resources Director Gabbard. 4. Agenda Motion by Bernhjelm, second by Hoyt, to approve the agenda as presented. APIF, motion carried. 5. Announcements/Commendations a) Dakota County Commissioner Mike Slavik Dakota County Commissioner Mike Slavik presented an update on county activities to the city council. Some of the topics shared included property valuations, 2020 budget challenges, continued county tax rate reductions, 2020 projects and more. The city council thanked Commissioner Slavik for the update and his continued support of Farmington. 6. Citizen Comments None December 2, 2019 Minutes -1- 7. Consent Agenda Motion by Bernhjelm, second by Craig, to approve the consent agenda as presented: a) Approve Minutes of the November 18, 2019 City Council Meeting-Administration b) Approve Agreement for Dakota Broadband Board Executive Director Cost Reimbursement-Administration c) Adopt Resolution R44-2019 Approving Polling Locations for 2020 Elections-Community Development d) Approve Community Solar Garden Subscription with Nokomis Partners Subscriber Estoppel and Garden Conditions-Community Development e) Approve Various License and Permit Renewals-Community Development f) Approve Classification of the Deputy Police Chief Position-Human Resources g) Approve Seasonal Hiring-Human Resources h) Approve Bills-Finance APIF, motion carried. 8. Public Hearings a) On-Sale Liquor and Sunday Liquor License for Long Branch Saloon and Eatery and Farmington Tap House Mayor Larson opened the public hearing. Administrative Assistant Mueller shared that pursuant to city ordinance 3-12-6-2, a public hearing must be held to establish an on-sale liquor license and on-sale Sunday liquor license. Leslie Tentis has submitted the required license and fees and application for these two licenses for the Long Branch Saloon and Eatery and Farmington Tap House located at 309 Third Street. The application and required documentation have been reviewed and approved by the Farmington Police Department. No one in attendance wished to comment. Motion by Hoyt, second by Bernhjelm,to close the public hearing. APIF, motion carried. Motion by Bernhjelm, second by Donnelly,to approve an On-Sale Liquor License and On-Sale Sunday Liquor License for the Long Branch Saloon and Eatery and Farmington Tap House at 309 Third Street. b) 2020 License Renewals Mayor Larson opened the public hearing. December 2, 2019 Minutes -2- Administrative Assistant Muller shared that per city code, a public hearing must be held to issue or renew on-sale liquor licenses, on-sale Sunday liquor licenses, on-sale wine licenses, club licenses and therapeutic massage licenses. The required applications, fees and insurance information have been submitted for renewal and have been reviewed and approved by the Farmington Police Department for the following establishments: On-Sale and On-Sale Sunday Bourbon Butcher-20700 Chippendale Avenue West, Suite 15 Celts Pub and Grill-200 Third Street El Charro Mexican Restaurant-122 Elm Street Farmington Lanes-27 Fifth Street Las Enchiladas-18500 Pilot Knob Road, Suite A Long Branch Saloon and Eatery/Farmington Tap House-309 Third Street Pizza Man-409 Third Street Rebel Chef-953 Eighth Street The Mug-18450 Pilot Knob Road This Little Piggy Catering Inc.-22280 Chippendale Avenue West Club License and On-Sale Sunday VFW Club Post#7662-421 Third Street On-Sale Wine and On-Sale Intoxicating Malt Liquor Wengs Kitchen-115 Elm Street Therapeutic Massage Denson Malone,Touch of Soul Massage Therapy-941 Eighth Street, Suite C No one in attendance wished to comment. Motion by Craig, second by Hoyt,to close the public hearing. APIF, motion carried. Motion by Bernhjelm, second by Hoyt, to approve the on-sale liquor, on-sale Sunday liquor, on- sale intoxicating malt liquor and on-sale wine, club and therapeutic massage licenses for the businesses listed on this item. APIF, motion carried. 9. Award of Contract None 10. Petitions, Requests and Communications None December 2,2019 Minutes -3- 11. Unfinished Business None 12. New Business a) 2020 Final Budget and Tax Levy Finance Director Malecha presented the 2020 final budget and tax levy for city council consideration. The city council discussed the draft 2020 General Fund budget and tax levy at work sessions in June,July, August, and November.The proposed final budget and tax levy are shown below. 2019 Budget 2020 Proposed Increase Budget (Decrease) Revenues $3,199,486 $3,574,072 11.71% Expenditures 13,007,794 13,805,263 6.13 Revenues Under Expenditures 9,808,308 10,231,191 4.31 Debt Levy 3,212,460 2,805,387 (12.67) Gross Levy 13,020,768 13,036,578 0.12 Fiscal Disparities (2,225,003) (2,294,024) 3.10 Net Tax Levy $10,795,765 $10,742,554 (0.49%) The city council approved the preliminary 2020 tax levy on September 3, 2019 and set the amount at$10,795,765.The fiscal disparities number has increased over the initial 2020 preliminary numbers lowering the tax levy amount to $10,742,554. The city is hosting the Dakota Broadband (DBB) Executive Director. As part of the interchange agreement, all of the human resource costs for the director are paid for by the city and the city is reimbursed by the DBB.The 2020 proposed final budget reflects the increase to revenues and expenses for those costs which net zero. As a member of the DBB, the city incurs programming costs. Those costs were previously accounted for in the EDA budget. For 2020, they have been moved to the General Fund. General Fund Revenues The revenues for 2020 are projected to increase 11.71 percent.The majority of those increases are accounted for in licenses and permits, fines and forfeitures, investment income, and miscellaneous revenue. 2019 Budget 2020 Proposed Increase Budget (Decrease) Licenses and Permits $396,410 $473,115 19.35% Intergovernmental Revenue 892,265 922,294 3.37 December 2, 2019 Minutes -4- Charge for Service 558,880 565,802 1.24 Fines and Forfeitures 42,000 49,000 16.67 Investment Income 21,900 38,800 77.17 Miscellaneous 43,775 54,580 24.68 Dakota Broadband HR 162,911 Transfers 1,244,256 1,307,570 5.09 Total Revenues $3,199,486 $3,574,072 11.71% General Fund Expenditures The proposed 2020 department budgets are summarized below. 2019 Budget 2020 Proposed Increase Budget (Decrease) Administration $881,322 $907,162 2.93% Human Resource 336,447 349,226 3.80 Dakota Broadband 24,489 Dakota Broadband HR 162,911 Finance 739,736 778,889 5.29 Police 4,480,057 4,677,813 4.41 Fire 1,267,885 1,445,410 14.00 Community Development 908,890 1,014,867 11.66 Engineering 747,170 794,635 6.35 Municipal Services 1,373,556 1,439,078 4.77 Parks and Recreation 1,231,593 1,278,576 3.81 Transfers 1,041,138 932,207 (10.46) Total Expenditures $13,007,794 $13,805,263 6.13% The significant department budget changes for Fire and Community Development are due to the new positions of the Deputy Fire Chief and Community Development Specialist in 2019.The positions were funded for a partial year starting July 1, 2019. The department budgets include increases to human resource and benefit costs for four union contracts and the non-union employee group. Funding is also included for one new position of a Deputy Police Chief. Transfers The transfers budget uses tax levy dollars and local government aid dollars to fund ongoing projects in the capital improvement plan in addition to funding for the EDA, township road maintenance, and the employee expense fund.The detailed transfers budget is attached. Debt Levy The debt levy represents the amount of tax levy needed to meet the city's 2020 debt repayment obligations.The 2020 debt levy is 12.67 percent lower than the 2019 debt levy. The reduction in debt is due to the final payments for two bond issuances and one interfund loan in 2020.The city continues repayment on seven other bonds. December 2, 2019 Minutes -5- While the city will be issuing additional debt in 2020 and in future years, the efforts will continue to pay for projects through a combination of debt and cash. Other Budgets City council and staff also reviewed and revised the budgets for other areas of the city including special revenue funds, capital projects funds, and enterprise funds. Some of the highlights of these budgets for 2020 include: • Fire Capital Projects Fund -A ladder truck will be ordered in early 2020 to replace Engine 2.The city will be issuing bonds to pay for the new truck. • General Capital Equipment Fund -The replacement of many of the fleet vehicles has been on hold for several years. In 2020, the city will begin replacing those vehicles as laid out in the capital improvement plan. • Maintenance Fund - Funding for street and trail maintenance is continuing to increase to meet the needs within the city. There will be crack sealing, seal coating, along with mill and overlay projects in 2020.There is also trail replacement slated for next year. • Liquor Stores-An increase of administrative support staff at the liquor stores from 0.5 FTE to 1.0 FTE is proposed. • Water-The construction of a new water tower is slated for 2020 along with well maintenance.A portion of the water tower will be paid for with cash and the remainder an internal loan. • Storm Water- Pond capacity improvements, vegetation management, and fleet replacement are allocated for 2020. • Sanitary Sewer-Sanitary sewer lining will continue in 2020 along with fleet replacement. These budgets along with the capital improvement plan were reviewed in detail at the November 12, 2019 city council work session. Items to Note The city has continued to improve its financial health while developing plans for the future. • The capital improvement plan has been revised for 2020-2024 allowing the city to continue to develop and improve. • The General Fund balance continues to reach the goal of 40 percent at year-end. • The bond rating was upgraded from AA to AA+ in April. The estimated market value of the average residential home in Farmington increased 6.42 percent from $253,204 in 2019 to$269,467 in 2020.The increase is lower than the increase of 8.31 percent from 2018 to 2019.The city tax impact to the average homeowner for 2020 is roughly December 2, 2019 Minutes -6- Councilmember Donnelly thanked Malecha for the good news and was very pleased we are able to hold the line on taxes. Councilmember Craig stated that great things are being accomplished while holding the line on taxes and maintaining services. Councilmember Hoyt stated we continue to pay down debt and prepare for the future, which is exciting. Mayor Larson shared that he has been looking forward to this year for a long time. Motion by Hoyt, second by Craig, to adopt Resolution R45-2019 establishing the 2020 tax levy and approving the 2020 budgets. APIF, motion carried. b) Master Plan for Neighborhood Park in the Fairhill Estate at North Creek Development Parks and Recreation Director Distad reminded the city council that on April 15, 2019 the development agreement with MI Homes for the Fairhill Estate at North Creek was approved. The final plat was also approved on June 3, 2019. One of the conditions to be met by the developer was to create and provide a master plan by the end of 2019 for the neighborhood park located in the development. Staff worked with the developer to provide guidance in the creation of a draft master plan using city standards. The Parks and Recreation Commission reviewed the plan on November 13, 2019 and recommended that the developer has been made aware of. The developer, in lieu of paying any park development fees, agreed to cover the park improvements identified in the park master plan up to $140,000. The city secured a letter of credit in order to ensure the improvements identified in the park master plan are completed and are equitable with the cost of improvements in other neighborhood parks. Motion by Bernhjelm, second by Hoyt,to approve the master plan for the neighborhood park in the Fairhill Estates at North Creek residential development. APIF, motion carried. c) Police Department Equipment Purchase Police Sergeant Constantineau shared that in 2007; the Farmington Police Department purchased all new 800 MHz radios (vehicle and portable) with a projected life span of 8-10 years. The cost for replacement radios has been included in the upcoming Police Equipment CIP ($211,000). December 2, 2019 Minutes -7- Due in part to the reliability of our current radios, and in part to budgetary restrictions, the replacement of our radios has been delayed for several years. They are currently scheduled to be replaced during 2020, 2021 and 2022. Motorola has a year-end special this year that will discount our radio purchase by$14,000 if we make the purchase all at once. The cost for this equipment (26 portable and 16 vehicle) is approximately$205,000. Motorola is also offering Municipal Lease Purchase program that would allow us to obtain the equipment now and pay for the radios over the three years of the CIP. After reviewing with the Finance Director, the options provided by Motorola, we recommend the option that calls for three year, semi-annual payments of $36,950.33. The first payment is due six months from the execution of the contract, with the remaining payments (totaling six) every six months thereafter. The finance charge for this Lease Purchase would be approximately$14,000, very close to the savings realized through the current Motorola incentive. To qualify for this incentive, a contract needs to be executed by December 6, 2019. Constantineau considered recommending that we wait to purchase the radios another two years, but as of the end of 2019; Motorola will no longer be supporting any of our radios. That means if there is an issue with one, and parts are no longer available, we would be short a radio. I also considered recommending purchasing them in phases as outlined in the CIP. While that option looks beneficial from a budgeting standpoint, it makes managing the radios and their replacement more complicated. Councilmember Donnelly stated it appeared the department did their homework and he supported the purchase. Councilmember Bernhjelm stated it makes sense to purchase the radios with this method. Motion by Hoyt, second by Bernhjelm, to approve the purchase of new 800 MHz radios as listed in the quote from Motorola. APIF, motion carried. 13. City Council Roundtable Craig-Reminded residents about Toys for Town. Hoyt-Thanked Troop 166 for attending. Reminded residents about Dazzle Day this weekend. McKnight-Reminded residents about openings on city boards and commissions. Kienberger-Thanked everyone who participated in Small Business Saturday. Gehler-Shared that holiday lights can be recycled by dropping them off at city facilities. Distad-Shared that the Secret Holiday Shop is this Saturday. December 2, 2019 Minutes -8- Rutherford-Provided an update on Toys for Town and shared that they have collected enough stuffed animals this year. In addition, donation of gift cards is a difficult for the department to handle, cash donations are preferred. Elvestad-Encouraged residents to shovel around fire hydrants. Larson-Encouraged residents to shop local. 14. Adjourn Motion by Bernhjelm, second by Hoyt, to adjourn the meeting at 7:44 p.m. APIF, motion carried. Respectfully Submitted David McKnight, City Administrator December 2, 2019 Minutes -9- CITY OF O 430 Third St., Farmington, MN 55024 FARMINCTON © 651-280-6800 FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: David McKnight, City Administrator SUBJECT: Approve Minutes of the December 2, 2019 City Council Work Session- Administration DATE: December 16, 2019 INTRODUCTION Attached for your review are the minutes from the work session of December 2, 2019. DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED Approve the minutes of the December 2, 2019 city council work session. ATTACHMENTS: Type Description D Backup Material December 2, 2019 Work Session Minutes CITY OF FARMINGTON CITY COUNCIL MINUTES WORK SESSION DECEMBER 2, 2019 Mayor Larson called the work session to order at 6:00 p.m. Roll Call Present-Larson, Bernhjelm, Craig, Donnelly and Hoyt Absent-None Also Present-Administrator McKnight, Public Works Director Gehler, Community Development Director Kienberger and Parks and Recreation Director Distad Agenda Motion by Craig, second by Hoyt, to approve the agenda as presented. APIF, motion carried. Storm Water Fee Approach Public Works Director Gehler continued the discussion on the city's approach to storm water fee calculation that was started at the last city council meeting. The city currently has six different REU coefficients, using a generalized formula to determine quarterly fees. Gehler shared three options that she thought were available- 1. Continue the program as we have been administering it in the past. 2. Review the generic approach percentages we use to see if they need updating. 3. Transfer to a specific look at each property to determine percentages. Councilmember Donnelly thought it was a good investment of staff time to analyze properties individually. Councilmember Hoyt asked how we determine what impervious surface is. Is class five impervious? Gehler shared that the state says that class five is impervious and we use their definition. Hoyt asked what happens if a property does not dump water into the storm water system. Gehler stated that eventually all water gets into the storm water system that the city maintains. December 2, 2019 Work Session Minutes - 1- Bernhjelm stated she wanted to look at our six percentages to see if they were accurate. She also thought an appeal process should be considered. Councilmember Craig also supported some type of appeal process. The consensus of the city council was to have staff research the following for continued conversation: 1. The estimated resources/time it would take to implement option three. 2. How do other cities in the area approach this issue. 3. How would an appeal process work. 4. What would an update of our six generic percentages look like. City Administrator Update Administrator McKnight and city staff provided updates on the following issues: 1. Reminder of the boards and commission meeting this week. 2. PRAC has requested to meet with the city council to discuss a possible future referendum. Direction was provided to schedule this in early 2020. 3. City staff provided an update on steps taken because of the grocery store closing in December. Adjourn Motion by Bernhjelm, second by Donnelly, to adjourn the meeting at 6:37 p.m. APIF, motion carried. Respectfully Submitted 2200,41 P/G/CS 4j rAlv David McKnight, City Administrator December 2, 2019 Work Session Minutes -2- CITY OF 0430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-68o0 FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Cynthia Muller, Administrative Assistant SUBJECT: Accept Resignation Rambling River Center Advisory Board-Administration DATE: December 16, 2019 INTRODUCTION A resignation has been received from the Rambling River Center Advisory Board. DISCUSSION Mr. Dennis Michaelis has submitted his resignation from his position on the Rambling River Center Advisory Board effective December 31, 2019. His term on the board runs through January 31, 2022. A copy of his resignation is attached. This seat will be advertised with the annual vacancies. BUDGET IMPACT NA ACTION REQUESTED Accept the resignation of Dennis Michaelis from the Rambling River Center Advisory Board effective December 31, 2019. ATTACHMENTS: Type Description D Exhibit Resignation December 5, 2019 Members of the Farmington City Council: After much thought I have come to the decision that I will need to resign my position on the RRC Board effective December 31, 2019. Your understanding of my decision is greatly appreciated. Sincer-ly, R,": „Dennis H Michaelis CITY OF O430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 © FarmingtonMN.gov __.......r ‘"----00010011 . TO: Mayor, Councilmembers and City Administrator FROM: Cynthia Muller,Administrative Assistant SUBJECT: Accept Resignation Rambling River Center Advisory Board-Administration DATE: December 16, 2019 INTRODUCTION A resignation has been received from the Rambling River Center Advisory Board. DISCUSSION Mr. Roger Wood has submitted his resignation from his position on the Rambling River Center Advisory Board effective December 31, 2019. His term on the board runs through January 31, 2021. A copy of his resignation is attached. This vacancy will be advertised with the annual vacancies. BUDGET IMPACT NA ACTION REQUESTED Accept the resignation of Roger Wood from the Rambling River Center Advisory Board effective December 31, 2019. ATTACHMENTS: Type Description D Exhibit Resignation December 2, 2019 Farmington City Council Randy Distad Missie Kohlbeck I am resigning the Rambling River Board as of December 31, 2019. Thank You for allowing me to serve. Respectfully submitted, Roger Wood AC_1 CITY OF 0430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 .., _., --.....,,„..e=tt,.. © FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Cynthia Muller, Administrative Assistant SUBJECT: Adopt Resolution Approving a Gambling Event Permit for the Knights of Columbus- Community Development DATE: December 16, 2019 INTRODUCTION The Knights of Columbus is requesting a gambling event permit for three bingo fundraisers. DISCUSSION Per State Statute 349.166 and pertinent city code, a gambling event permit must be issued by the city for this type of event. An application has been received, along with the appropriate fees. The police department has reviewed the application and approved the request. BUDGET IMPACT Gambling fees are included in the revenue portion of the 2020 budget. ACTION REQUESTED Consider the attached resolution granting a gambling event permit to the Knights of Columbus,to be held at St. Michaels Catholic Church, 22120 Denmark Avenue, on January 25, 2020; March 28, 2020; and November 21, 2020. ATTACHMENTS: Type Description D Resolution Gambling Event Resolution RESOLUTION NO. R46-1 9 APPROVING A MINNESOTA LAWFUL GAMBLING EVENT PERMIT APPLICATION FOR THE KNIGHTS OF COLUMBUS Pursuant to due call and notice thereof,a regular meeting of the City Council of the city of Farmington,Minnesota,was held in the Council Chambers of said city on the 16th day of December 2019 at 7:00 p.m. Members Present: Larson, Bernhj elm, Craig, Donnelly, Hoyt Members Absent: None Member Hoyt and Member Craig introduced and seconded the following: WHEREAS,pursuant to M.S. 349.166,the State of Minnesota Gambling Board may not issue or renew a Gambling Event Permit unless the City Council adopts a resolution approving said permit; and, WHEREAS,the Knights of Columbus have submitted an application for a Gambling Event Permit to be conducted at 22120 Denmark Avenue, on January 25,2020,March 28,2020, and November 21, 2020,for Council consideration. NOW,THEREFORE,BE IT RESOLVED by the Farmington City Council that the Gambling Event Permit for the Knights of Columbus,to be held at 22120 Denmark Avenue,is hereby approved. This resolution adopted by recorded vote of the Farmington City Council in open session on the 16th day of December 2019. Mayor Attested to the -'4,1 4 day of December 2019. C� i Administrates SEAL CITY OF O430 Third St., Farmington, MN 55024 FARMINCTON © 651-280-6800 -1=0-••••'___. ..„,„„00. ���` ® FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Randy Distad, Parks and Recreation Director SUBJECT: Approve 2020 Dakota County Sentence to Service Contract-Parks DATE: December 16, 2019 INTRODUCTION Attached for city council consideration and approval is a Dakota County Sentence to Service(STS) contract for the year 2020. The City of Farmington has entered into a contract with Dakota County and used the STS program for many years. DISCUSSION Dakota County operates an STS program. The program was developed to supervise the completion of court ordered community service. It is most typically an alternative used in place of a jail term. Participants are non-dangerous offenders who have been screened by program staff. Dakota County makes STS crews available to non-profit organizations as well as state and local governments. Upon execution of a contract with Dakota County, crews are made available to do many types of work including park clean up, construction labor, landscaping, painting and trail construction and maintenance. The size of the crew ranges from five to ten crewmembers. Crewmembers are supervised by a working crew leader who is a contractor hired by Dakota County. Currently,the city has several projects that would benefit from the additional resources provided by an STS crew. Both Parks and Recreation and Natural Resources will utilize the crew for a total of two weeks during the year. I n prior contract years,work completed by the STS crew for Parks and Recreation has included boardwalk construction, painting outdoor hockey rink surfaces, and other general facility maintenance tasks. Natural Resources has utilized the crews to clean out city storm water structures in order to provide unobstructed storm water flow and remove buckthorn and willow trees from our storm water ponding areas that are undergoing prairie restoration. BUDGET IMPACT The total cost associated with this contract in the amount of$4,720.00 will be evenly shared between the park maintenance and natural resource's storm water utility fund and are included in the 2020 approved budget. ACTION REQUESTED The action requested of the city council is to approve the attached STS contract with Dakota County. ATTACHMENTS: Type Description D Contract 2020 Dakota County STS Contract JOINT POWERS AGREEMENT BETWEEN THE COUNTY OF DAKOTA AND THE CITY OF FARMINGTON FOR SENTENCE TO SERVICE PROGRAM WORK CREWS AGREEMENT PERIOD: 1/1/2020—12/31/2020 This Agreement is between County of Dakota, through its Community Corrections Department, hereinafter"County" and the City of Farmington, 430 Third Street, Farmington, MN 55024, hereinafter "City." This Agreement uses the word "parties"for both County and City. WHEREAS,the County and the City are governmental units as that term is defined in Minn. Stat. §471.59; and WHEREAS, under Minn. Stat. §471.59, subd.1, two or more governmental units may enter into an agreement to cooperatively exercise any power common to the contracting parties, and one of the participating governmental units may exercise one of its powers on behalf of the other governmental units; and WHEREAS,the City desires the services of the Sentence to Service Program work crews; and WHEREAS, the County operates a Sentence to Service Program by providing work crews referred through the Community Corrections Department plus a supervisor to perform unskilled labor; and WHEREAS, The City will pay the County a total amount of$4,720.00 at a rate of$472.00 per day for ten (10) work crew days pursuant to the terms of this Agreement; and WHEREAS, the Dakota County Board of Commissioners authorized the County to enter into an agreement with the City for Sentence to Service work crews. Now,THEREFORE, in consideration of the mutual promises and agreements contained herein the parties agree as follows: 1. GENERAL PROVISIONS. 1.1 Purpose. The purpose of this Agreement is to define the rights and obligations of the County and the City with respect to Sentence to Service("STS")work crews. 1.2 Cooperation. The County and the City shall cooperate and use their reasonable efforts to ensure the most expeditious implementation of the various provisions of this Agreement. The parties agree to, in good faith, undertake resolution of any disputes in an equitable and timely manner. City and County liaisons will meet at least twice annually and more frequently if necessary to discuss issues related to the STS program. 1.3 Term. This Agreement is effective and enforceable on January 1, 2020 ("Effective Date") and expires on December 31, 2020 or the date on which all Services have been satisfactorily performed and final payment is made, whichever occurs first. 1.4 Definitions. a) Work Crew. A work crew shall consist of a Crew leader and a crew of five to ten workers, who are jail inmates or community members, screened by Community Corrections. The Crew leader, an employee of General Security Services Corporation (GSSC), shall oversee and be in charge of the work crew. b) Work Crew Days. An STS work crew day shall consist of seven hours, less a thirty minute lunch break, between the hours of 8:00 am and 3:00 pm. A work crew may be discharged earlier at the discretion of the City supervisor. 2. CITY'S RIGHTS AND OBLIGATIONS. 2.1 General Description. City will purchase 10 STS work crew days. The specific days to be worked and the work to be performed shall be determined at least thirty calendar days in advance of the work by the City and the County. 2.2 Total Cost. The total amount to be paid by the City pursuant to this Agreement shall not exceed $4,720.00. The County will invoice the City for actual crew days worked up to 10 days at a cost of$472.00 per day. The City 2020 STS Contract with Dakota County Page 1 Custom agrees to pay the County $2,360.00 no later than May 31, 2020, and shall pay the remaining $2,360.00 no later than October 1, 2020. 2.3 Work Projects. The City will provide work projects requiring unskilled labor such as light construction or landscaping, and any specialized equipment needed for the work. Each work project will be reduced to writing and provided to the Crew leader before work commences. A work project will be concluded when a City representative and the Crew leader approve in writing that work has been satisfactorily completed. 2.4 Crew. Work crew members, including the GSSC work crew leader, are not employees of the City or the County. 3. COUNTY'S RIGHTS AND OBLIGATIONS. 3.1 General Description. The County will: • Provide STS work crews for the City pursuant to this Agreement. • Designate a person as the County's representative with respect to the performance of services for the City under this Agreement. Such person shall have complete authority to transmit instructions, receive information, interpret and define the County's policies and decisions with respect to services covered by this Agreement. 3.2 Payment. The County will submit invoices to the City for payment by the City. 3.3 Work Projects. The County, through its Contractor, General Security Services Corporation, shall equip work crews with hand tools. 3.4 Other Work. The County may, at its discretion, offer the City the opportunity to use more than 10 crew days per year without additional cost to the City if additional days are available. 4. LIABLE FOR OWN ACTS. 4.1 Each party to this Agreement shall be liable for the acts of its own officers, employees and agents and the results thereof to the extent authorized by law and shall not be responsible for the acts of another party, its officers, employees and/or agents. It is understood and agreed that the provisions of the Municipal Tort Claims Act, Minn. Stat. Ch. 466, and other applicable laws govern liability arising from a party's acts or omissions. It is further understood and agreed that Minn. Stat. § 3.739 solely governs claims for injury or death of work crew members. 4.2 Any and all work crew members engaged in the aforesaid work to be performed by the County shall not be considered employees of the City for any purpose including, but not limited to, application of the Workers' Compensation laws. Any and all claims that may or might arise under the Workers' Compensation Act of this City on behalf of the work crew members while engaged on any of the work contemplated herein shall not the obligation or responsibility of City but shall be determined as provided in Minnesota Statute § 3.739. The County shall not be responsible under the Workers' Compensation Act for any employees of the City. 5. FORCE MAJEURE. Neither party shall be liable to the other party for any loss or damage resulting from a delay or failure to perform due to unforeseeable acts or events outside the defaulting party's reasonable control, providing the defaulting party gives notice to the other party as soon as possible. Acts and events may include acts of God, acts of terrorism, war, fire,flood, epidemic, acts of civil or military authority, and natural disasters. 6. TERMINATION. 6.1 Termination Without Cause. Either party may terminate this Agreement without cause by providing 30 days' Notice of Termination to the other party. 2020 STS Contract with Dakota County Page 2 Custom 6.2 Termination for Cause or Material Breach. Either party may terminate this Agreement for cause by providing 7 calendar days' Notice of Termination to the other party, unless a different procedure or effective date is stated within the specific section of this Agreement under which the default occurs. In addition to other specifically stated provisions of this Agreement or as otherwise stated in law, events or circumstances constituting default and giving rise to the right to terminate for cause, unless waived, include but are not limited to: A. Making material misrepresentations either in the attached exhibits or in any other material provision or condition relied upon in the making of this Agreement. B. Failure to perform services or provide payment within the time specified in this Agreement. C. Failure to perform any other material provision of this Agreement. D. Failure to diligently and timely perform services so as to endanger performance of the provisions of this Agreement. 6.3 Termination by County — Lack of Funding. The County may immediately terminate this Agreement for lack of funding. A lack of funding occurs when funds appropriated for this Contract as of the Effective Date from a non- County source are unavailable or are not appropriated by the County Board. The County has sole discretion to determine if there is a lack of funding. The County is not obligated to pay for any services that are performed after providing Notice of Termination for lack of funding. The County is not subject to any penalty or damages for termination due to lack of funding. No Notice of Default is required to terminate under this section. 6.4 Notice of Termination. The Notice of Termination must state the intent to terminate the Agreement and specify the events or circumstances relevant Agreement provision warranting termination of the Agreement and whether the termination is for cause. 6.5 Duties of Parties Upon Termination. Upon either party providing the Notice of Termination, and except as otherwise stated, the parties shall: A. Discontinue performance under this Agreement on the date and to the extent specified in the Notice of Termination. B. Complete performance of any work that is not discontinued by the Notice of Termination. C. Cooperate with each other regarding transition of services. D. Cancel all orders and subcontracts to the extent that they relate to the performance of this Agreement. E. Return all County property in County within 7 calendar days after the date of Notice of Termination to the extent that it relates to the performance of this Agreement that is discontinued by the Notice of Termination. F. Submit an invoice for services satisfactorily performed prior to the effective date of termination within 35 calendar days of said date. G. Maintain all records relating to the performance of the Agreement as may be directed by the Notice of Termination or required by law or this Agreement. H. Make final payment in accordance with this Agreement for Services satisfactorily performed. 6.6 Effect of Termination for Cause or without Cause. A. Termination of this Agreement does not discharge any liability, responsibility, or right of any party that arises from the performance of, or failure to adequately perform the provisions of this Agreement prior to the effective date of termination. Termination shall not disclose any obligation which, by its nature, would survive after the date of terminaton. B. The County shall not be liable for any services performed after Notice of Termination, except as stated above or as authorized by the County in writing. 7. DAMAGES. Duty to Mitigate. Both parties shall use their best efforts to mitigate any damages which might be suffered by reason of any event giving rise to a remedy hereunder. 8. REPRESENTATIVE. Liaison. The Liaison, or his or her successor, has the authority to assist the parties in the day-to-day performance of this Agreement, ensure compliance, and provide ongoing consultation related to the performance of this Agreement. The parties shall promptly provide Notice to each other when a Liaison's successor is appointed. The Liaison's successor shall thereafter be the Liaison for purposes of this Agreement. 2020 STS Contract with Dakota County Page 3 Custom City Liaison: County Liaison: Jeremy Pire Leanne Walter City of Farmington Community Corrections Supervisor 430 Third Street Phone Number: 651-438-8336 Farmington, MN 55024 Phone Number:651-280-6845 9. AMENDMENTS. Any amendments to this Agreement are only valid when reduced to writing, specifically identified as an amendment, and signed by both parties'Authorized Representative. 10. COMPLIANCE WITH LAWS/STANDARDS. 10.1 General. City shall abide by all Federal, State or local laws, statutes, ordinances, rules, and regulations now in effect or hereafter adopted pertaining to this Agreement or to the facilities, programs, and staff for which the City is responsible. Any violation of this section is a material breach of this Contract. No Notice of Default is required to terminate under this section. 10.2 Minnesota Law to Govern. The laws of Minnesota govern all matters related to this Agreement, without giving effect to the principles of conflict of law. Venue and jurisdiction for any litigation related to this Agreement must be in those courts located within Dakota County, State of Minnesota or U.S. District Court, District of Minnesota. 11. SEVERABILITY. 11.1 The provisions of this Agreement shall be deemed severable. If any provision of this Agreement is void, invalid, or unenforceable, it will not affect the validity and enforceability of the remainder of this Agreement unless the void, invalid or unenforceable provision substantially impairs the value of the entire Agreement with respect to either party. 2020 STS Contract with Dakota County Page 4 Custom 12. MERGER. 12.1 This Agreement is the final expression of the agreement of the parties. This Agreement is the complete and exclusive statement of the provisions agreed to by the parties. This Agreement supersedes all prior negotiations, understandings, or agreements. There are no representations, warranties, or provisions, either oral or written, not contained herein. IN WITNESS WHEREOF, the parties have executed this Agreement on the dates indicated below: Approved by Dakota County Board COUNTY OF DAKOTA Resolution No. 19-868 By Stephanie Radtke Approved as to form: Title Community Services Deputy Director Date of Signature Amelia Jadoo 12/23/19 Assistant County Attorney/Date File No. KS-19-614 CITY OF FARMINGTON (I represent and warrant that I am authorized by law to execute this Agreement and legally bind the City). By ri- `%'c.c / s, (Please print name.) Title Al ei ye-r Date of Sigh'ature //i©/mc, KS-19-614 City of Farmington STS.doc Page 5 Custom CITY OF O 430 Third St., Farmington, MN 55024 FARM I NGTON © 651.280.6800 ® O FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Randy Distad, Parks and Recreation Director SUBJECT: Adopt Resolution Accepting a Donation from the Farmington Sons of the American Legion to the Rambling River Center-Parks DATE: December 16, 2019 INTRODUCTION_ A donation was recently made by the Farmington Sons of the American Legion to the Rambling River Center(RRC). DISCUSSION The Farmington Sons of the American Legion held an omelet breakfast fundraiser for the RRC. As a result of this fundraiser, $500.00 was donated to the RRC. This fundraising money will be used in the future at the RRC to fund either building capital improvements or purchase of furniture and/or equipment. Staff will communicate the city's appreciation on behalf of the city council to the Farmington Sons of the American Legion for their generous donation. BUDGET IMPACT NA ACTION REQUESTED Adopt the attached resolution accepting the donation of$500.00 made by the Farmington Sons of the American Legion to the Rambling River Center. ATTACHMENTS: Type Description © Resolution SAL Donation to RRC Resolution RESOLUTION NO. R47-1 9 ACCEPT DONATION OF $500.00 FROM THE FARMINGTON SONS OF THE AMERICAN LEGION TO THE RAMBLING RIVER CENTER Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota, was held in the Council Chambers of said City on the 16th day of December, 2019 at 7:00 p.m. Members Present: Larson, Bernhj elm, Craig, Donnelly, Hoyt Members Absent: None Member Hoyt and Member Craig introduced and seconded the following: WHEREAS, a donation of$500.00 was made by the Farmington Sons of the American Legion to the Rambling River Center; and, WHEREAS, it is required by State Statute and in the best interest of the city that the donation be formally accepted. NOW, THEREFORE,BE IT RESOLVED that the city of Farmington hereby accepts with gratitude the generous donation of$500.00 from the Farmington Sons of the American Legion to the Rambling River Center and will place the donation in the Rambling River Center's Capital Improvement Fund for future building improvements or purchase of furniture and equipment. This resolution adopted by recorded vote of the Farmington City Council in open session on the 16th day of December, 2019. Mayor Attested to the / lel'day of December, 2019. City Administrator SEAL CITY OF O 430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Katy Gehler, Public Works Director& Peter Gilbertson, Network Administrator SUBJECT: Approve the Update of the GIS System-Public Works DATE: December 16, 2019 INTRODUCTION A Geographical Information System (GIS) software provides the framework for gathering, managing and anaylzing data. GIS has become the primary data management and mapping platform across several industries. ESRI is the primary vendor of GIS software. Over the last few years,they have focused on developing industry specific solutions. A solution is similar to an app you might see on a mobile platform. The pre- built solutions can be customized by the end user to fit their specific needs. With a focus on the government sector, GIS systems have become much more robust and can be utilized across most departments. Examples include code enforcement reporting and management, infrastructure inventory, solid waste ticket tracking, and zoning mapping. I n addition GIS can map data tracked in other systems and perform analytics. DISCUSSION The city has utilized GIS on a limited basis for several years and has maintained software licensing for those staff that run the software.A need for asset management software was identified and programmed in the 2018 and 2019 budgets. I n looking at options for asset management, GIS fits the needs both now and into the future. By utilizing the GIS platform for asset management,the software will need to be upgraded to allow access across the organization. This upgrade is building off of the existing licensing and is in lieu of a purchasing a completely separate asset management software,thus providing an overall savings both up front and on the annual maintenance. The upgrade includes purchasing licensing for a server to manage the data and allow access to this data from various work stations and mobile devices. ESRI also includes a package to deploy and set up the server. I n addition,there is an optional launch package where ESRI will provide 3-5 days of on-site support to set up a number of the solutions. This package ensures the selected solutions are set-up in a manner most beneficial to the city as well as providing training on managing solutions into the future. BUDGET IMPACT The IT Fund allocated $82,669 for asset management software. The update of the software, including server licensing, server deployment and launch of solutions totals approximately$50,000. ACTION REQUESTED Approve the upgrade of the GIS software in the amount of$50,000. CITY OF © 430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Katy Gehler, Public Works Director/City Engineer SUBJECT: Approve a Professional Services Contract for the Siting and Feasibility Study of a New Water Tower-Public Works DATE: December 16, 2019 INTRODUCTION The City of Farmington recently completed an update to the Water Plan to inform the 2040 Comprehensive Plan. The plan considered water infrastructure needs to support future development and identified capital projects necessary to accommodate this growth.The plan reiterated a deficiency in the amount of water storage the city has to be able to support the growing water demands of the community while being able to provide for adequate fire protection. To determine the recommended minimum storage volume three components are considered; average demands and pressure equalization,fire demands, and emergency reserve(i.e. equipment failure). Given the prescribed methods for designing water systems and guidelines for fire protection as outlined by the Insurance Service Office(ISO)the current recommended storage volume is 2.49 Million Gallons (MG). The future system,that considers the next 20-year horizon, is recommended to have a storage capacity of 3.65 MG. An excerpt from the Water Plan detailing how the volumes are determined is attached. The existing effective storage volume is 1.79 MG which is made up of the 1.5 MG tank at the municipal campus and the 0.67 MG tank in Daisy Knoll Park. I n addition to the volume needs,the tank in Daisy Knoll Park has served it's useful life and been identified for removal. Given the future needs the plan recommended the city install a 2.0 MG storage tank. DISCUSSION The first step in the design process will be to look in more detail at the siting assumptions for the new tower along with operational efficiencies or challenges the sites bring. The Siting and Feasibility Study will build off the Water Plan by refining the site locations, modeling the pressures and flows, consider storage types, prepare refined cost estimates and develop a schedule. As part of the Comprehensive Plan development, a potential water sales partnership with Empire Township was discussed such that the City would provide water to areas that the Township currently can not. Empire will be completing a similar parallel study to determine the cost efficiencies of their options to service land at higher elevations. Given Bolton and Menk completed both the City's and Townships's Water Plans staff worked with them to develop a scope and fees associated with the desired outcomes. The scope of service is attached with the proposed contract. BUDGET IMPACT Funding for this study will be supported by the Water Fund as part of the costs associated with the new water tower identified in the CI P. ACTION REQUESTED Approve the attached contract and authorize the Mayor and City Administrator to execute the same. ATTACHMENTS: Type Description D Backup Material Excerpt from Water Plan D Contract Professional Services Contract V. RECOMMENDED FUTURE IMPROVEMENTS A. GENERAL This section details recommended future improvements for Farmington's water system to improve the water supply,treatment, distribution system,and storage facilities. The recommended improvements are based on evaluation of the existing facilities discussed in Section 3 and the projected water demands evaluated in Section 2. This Section includes a discussion of the water system model to show how the infrastructure improvements affect average and maximum daily pressures, as well as maximum daily fire flows. B. WATER SUPPLY Analysis of the water supply indicates that the City of Farmington does not require additional wells to meet existing requirements. Recall that it is desirable to maintain a firm well capacity(capacity with the largest well out of service)greater than the projected maximum daily demand. The City of Farmington's current recommended firm water supply is 5.33 MGD or approximately 3,700 gpm for the existing system. The City's recommended firm capacity for the future system is 7.72 MGD or approximately 5,400 gpm. Currently,by operating the wells 24 hours per day,the City has a firm well capacity of 10.37 MGD or 7,200 gpm. This exceeds existing and future maximum daily demands; however Well No. 1, Well No. 3, and Well No. 4 have surpassed their typical useful life and should be considered for replacement. Due to the age of Well No.4, it may remain in service,but should be considered for replacement by 2040. By replacing Well No. 1 and Well No. 3,the firm capacity of the remaining wells is 8.06 MGD or 5,600 gpm. This firm capacity is greater than the existing and future requirement. However, as noted previously, the City will be abandoning wells 1 and 3 and if they abandon well 4 the firm capacity of the remaining wells is 6.62 MGD or 4,600 gpm. This firm capacity is greater than the existing maximum daily demand,but is insufficient for the future maximum daily demand. This would require a new well to be drilled and the City is currently working to have well 9 drilled in 2019. If this well produces at least 770 gpm(1.10 MGD)then the City will have adequate firm capacity. The City had a well siting study completed in July 2018 that evaluated future well sites viability. A copy of this study is included in the appendix. This study eliminated several potential well sites for new Well No. 9. Also,new well sites should be aligned,where possible,to connect to existing raw watermain piping. C. WATER STORAGE FACILITIES Recommended storage capacity for larger cities, such as Farmington, are determined based on the following storage requirement categories: 1. Equalization storage 2. Fire storage 3. Emergency storage The recommended storage for the City is the equalization storage plus the larger of either the fire storage or emergency storage. The equalization storage is equal to the average daily demand or 25 percent of the maximum daily demand,provided pumping rates can achieve average daily demands or greater, as is the case for Farmington. The fire storage is a standard recommended storage volume of 3,500 gpm for 4 hours or 0.84 MG. The emergency storage is either the average daily demand,which is typically used for small towns, or 60 percent of the average daily demand for larger cities. Farmington's recommended storage volumes for Prepared by:Bolton&Menk,Inc. RECOMMENDED FUTURE IMPROVEMENTS City of Farmington,MN Water System Plan I T18.114157 Page 19 each category are displayed below in Table 5.1. Following these guidelines,Farmington's recommended storage volumes for the existing and future system are the sum of the equalization storage and emergency storage volumes. Farmington's existing recommended storage volume is 2.49 MG and the future recommended storage volume is 3.65 MG. Farmington's existing effective storage volume is 1.79 MG, so the City is deficient in their recommended storage volumes by 0.70 MG for the existing system and 1.86 MG for the future system. Table 5.1—Storage Requirements Existing System Volume Future System Volume Category Recommendations Recommendations (MG) (MG) Equalization 1.33 1.93 Fire Protection 0.84 0.84 Other Emergencies 1.16 1.72 Recommended Storage Volume 2.49 3.65 It is recommended the City install a 2.0 MG storage tank or install a 1.0 MG tank with the intent of installing another 1.0 MG tank by 2022. It is also recommended to continue with proper maintenance and to evaluate the towers as needed to determine the adequacy of the coating system to ensure that it has several more years of useful life. D. WATER TREATMENT FACILITIES The City currently meets all primary drinking water standards, as indicated in the 2016 Consumer Confidence Report,and most of the secondary aesthetic water quality standards, except for iron and manganese. Farmington's raw water quality is moderately high in iron and manganese. Historic test results have shown that four of the wells exceed the secondary standards for both iron and manganese. Secondary standards are indicative of aesthetic water quality and does not necessarily constitute a health hazard;however,the City may choose to treat iron and manganese based on consumer complaints on water color and clarity. Excessive iron and manganese may cause red and black stains and colors when the water is used for irrigation and other household uses. The City may want to consider an iron and manganese removal plant to minimize consumer complaints regarding water quality and help with long term maintenance and operation of the system. Initial plans for a future water treatment facility were in the City Civic site,however,this is no longer a viable site for a water treatment facility due to the limited space available(approximately 1 acre remaining). This means the City will need to look at future site(s)for the water treatment facility. It is recommended to look at sites 5 acres in size or larger to accommodate the facility,wells and future expansion. In addition,the City already has some raw water piping in place that would feed the proposed water treatment facility. The City prefers to locate future wells to allow the new wells to connect to the existing raw watermain,where feasible. E. WATER DISTRIBUTION SYSTEM The distribution system was analyzed using Innovyze's InfoWater Version 12.3 water modeling program. Water models were developed to simulate the existing average daily demands and maximum daily demands. The existing system was calibrated with hydrant testing data obtained from the City. Calibration results show that the model is a good approximation of the City's water distribution system. Figure 5.1 shows a map of the existing system's watermain sizes and major water system infrastructure. Prepared by:Bolton&Menk,Inc. RECOMMENDED FUTURE IMPROVEMENTS City of Farmington,MN Water System Plan I T18.114157 Page 20 AGREEMENT FOR PROFESSIONAL CONSULTING SERVICES This Agreement ("Agreement") made this /G,4day of December, 2019, between the CITY OF FARMINGTON a municipal corporation ("City"), and BOLTON & MENK, INC., a Minnesota Corporation ("Consultant"). The purpose of this Agreement is to set forth the terms and conditions for the provision of services by Consultant for professional engineering related to the siting and feasibility of a new water tower hereinafter referred to as the "Work". 1. Scope of Service. The scope of service is detailed in the Proposal submitted by the consultant dated December 10, 2019 and attached as Exhibit A. The terms of this contract shall take precedence over any provisions of the Consultant's proposal and/or general conditions. 2. Term of Contract. All Work under this Contract shall be provided, performed and/or completed by March 1, 2020. 3. Compensation for Services. City agrees to pay the Consultant on an hourly basis not to exceed $15,910. No claim will be honored for compensation for extra services or beyond the scope of this Agreement or the not-to-exceed price for the services identified in the proposal without written submittal by the Consultant, and approval of an amendment by the City, with specific estimates of type, time and maximum costs, prior to commencement of the work. 4. Method of Payment. Consultant shall prepare and submit to City, on a monthly basis, itemized invoices setting forth work performed under this Contract. Invoices submitted shall be paid in the same manner as other claims made to the City. Invoices to the City and payment to the Consultant by the City shall be subject to Minnesota statutory provisions pertaining to claims, including Minnesota Statutes § 471.38, 471.40, and the Minnesota Prompt Payment Act, M.S. §425.425. 5. Staffing. The Consultant has designated staffing to complete and manage the Work in the proposal attached as Exhibit A. They shall be assisted by other staff members as necessary to facilitate the completion of the Work in accordance with the terms established herein. Consultant may not remove or replace the designated staff without the approval of the City. 6. Standard of Care. Consultant shall exercise the same degree of care, skill and diligence in the performance of its services as is ordinarily exercised by members of the profession under similar circumstances in Dakota County, Minnesota. 7. Insurance. a. General Liability. Consultant shall maintain a general liability insurance policy with limits of at least $1,500,000.00 for each person, and each occurrence, for both personal injury and property damage. Consultant shall provide City with a Certificate of Insurance verifying insurance coverage before providing service to the City. b. Worker's Compensation. Consultant shall secure and maintain such insurance as will protect Consultant from claims under the Worker's Compensation Acts and from 1 claims for bodily injury, death, or property damage which may arise from the performance of Consultant's services under this Contract. 8. Indemnification. Consultant will defend and indemnify City, its officers, agents, and employees and hold them harmless from and against all judgments, claims, damages, costs and expenses, including a reasonable amount as and for its attorney's fees paid, incurred or for which it may be liable resulting from any breach of this Contract by Consultant, its agents, contractors and employees, or any negligent or intentional act or omission performed, taken or not performed or taken by Consultant, its agents, contractors and employees, relative to this Contract. City will indemnify and hold Consultant harmless from and against any loss for injuries or damages arising out of the negligent acts of the City, its officers, agents or employees. 9. Termination. This Contract may be terminated by either party by thirty (30) days' written notice delivered to the other party at the addresses written above. Upon termination under this provision if there is no fault of the Consultant, the Consultant shall be paid for services rendered until the effective date of termination. 10. Independent Contractor. At all times and for all purposes herein, the Consultant is an independent contractor and not an employee of the City. No statement herein shall be construed so as to find the Consultant an employee of the City. 11. Non-Discrimination. During the performance of this Contract, the Consultant shall not discriminate against any employee or applicants for employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, disability, or age. The Consultant shall post in places available to employees and applicants for employment, notices setting forth the provision of this non-discrimination clause and stating that all qualified applicants will receive consideration for employment. The Consultant further agrees to comply with all aspects of the Minnesota Human Rights Act, Minnesota Statutes 363.01, et. seq., Title VI of the Civil Rights Act of 1964, and the Americans with Disabilities Act of 1990. 12. Subcontract or Assignment. Consultant shall not subcontract any part of the services to be provided under this Contract other than what is identified in the proposal; nor may Consultant assign this Contract, or any interest arising herein, without the prior written consent of the City. Consultant shall comply with Minnesota Statute § 471.425. Consultant must pay subcontractors for all undisputed services provided by subcontractors within ten days of Consultant's receipt of payment from City. Consultant must pay interest of 1.5 percent per month or any part of a month to subcontractors on any undisputed amount not paid on time to subcontractors. The minimum monthly interest penalty payment for an unpaid balance of$100 or more is $10. 13. Compliance with Laws and Regulations. Consultant is responsible for knowing of and abiding by all statutes, ordinances, rules and regulations pertaining to the type of services provided pursuant to this Contract; including, as applicable, the Minnesota Data Practices Act, Minnesota Statutes Section 13, as amended, and Minnesota Rules promulgated pursuant to Chapter 13. 14. Audits and Data Practices. The books, records, documents, and accounting procedures and practices of the Consultant or other parties relevant to this agreement are subject to examination by the City and either Legislative Auditor or the State Auditor for a period of six years after the effective date of this contract. This Contract is subject to the Minnesota 2 Government Data Practice Act, Minnesota Statutes Chapter 13 (Data Practices Act). All government data, as defined in the Data Practices Act Section 13.02, Subd 7, which is created, collected, received, stored, used, maintained, or disseminated by Consultant in performing any of the functions of the City during performance of this Contract is subject to the requirements of the Data Practice Act and Consultant shall comply with those requirements as if it were a government entity. All subcontracts entered into by Consultant in relation to this Contract shall contain similar Data Practices Act compliance language. 15. Work Product. All materials, including but not limited to reports, exhibits, models, maps, charts, computer data, and supporting documentation produced under work authorized by this Agreement shall become the property of the City upon completion of the work or termination of this Agreement. 16. Conflicts. No salaried officer or employee of the City and no member of the Council, or Commission, or Board of the City shall have a financial interest, direct or indirect, in this contract. The violation of this provision renders the contract void. Any federal regulations and applicable state statutes shall not be violated. 17. Damages. In the event of a breach of this Contract by the City, Consultant shall not be entitled to recover punitive, special or consequential damages or damages for loss of business. 18. Governing Law. This Agreement shall be controlled by the laws of the State of Minnesota. 19. Severability. The provisions of this Contract are severable. If any portion hereof is, for any reason, held by a court of competent jurisdiction to be contrary to law, such decision shall not affect the remaining provisions of this Contract. 20. Entire Agreement. The entire agreement of the parties is contained herein. This Contract supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Contract shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. IN WITNESS WHEREOF, the parties have signed this Contract as of the date and year first above written. CITY OF FARMINGTON BOLTON &MENK, INC BY: _ �� I BY: To d Larson, Mayor ! ,� Seth Peterson, Principal Engineer AND (� id Mc1. City ministrator 3 BO LTO N12224 Nicollet Avenue Burnsville,MN 55337-1649 • • & MENK Ph: (952)890-0509 Real People.Real Solutions. Fax: (952)890-8065 Bolton-Menk.com December 10,2019 Ms. Katy Gehler,P.E. Public Works Director/City Engineer City of Farmington 430 Third St. Farmington,MN 55024 Re: Scope and Fee Letter for Professional Engineering Services Water Tower Siting Study Dear Ms. Gehler: Thank you for the opportunity to submit this scope and fee letter to complete a water tower siting study to analyze the location for a future storage tank. This study will evaluate locations, type of storage tank, volume needed, develop preliminary cost estimates and preliminary schedule. We are well positioned to complete this work as we recently completed the water comprehensive plan and also have completed the most recent water system model. This information will be integral and helpful with the tower siting study. Scope of Work Based on our meeting the scope of work will consist of the following key items: - Development of proposed tower sites - Modeling proposed tower sites to determine pressures,flows,etc. - Analysis of volume needed - Analysis of storage type o Elevated • Hydropillar • Composite o Ground storage with booster station - Develop cost estimates - Develop schedule - Prepared draft and final technical memorandum We will utilize the information we already have from our existing work on your water system and we will use the water model to assist with the tower location portion of the study. Modeling the impacts of the proposed tower on not only the existing but future system is a key component of this study. There has been discussion regarding the possibility of interconnecting the Farmington and Empire Township water systems depending on where the proposed storage tank is located. We plan to look at that option as part of this study and any in depth analysis for Empire Township will be paid separately by the Township. We do not think a project kick-off meeting is necessary as we have most of the information we need to get started. However,we may need some additional information as we progress with the study and we will request that information as needed. C:\Users\jackleca\AppData\Local\Microsoft\Windows\INetCache\Content0utlook\3H4KD0AW\tower siting scope fee Ietter.docx Bolton&Menk is an equal opportunity employer. Name: Katy Gehler Date: December 10,2019 Page: 2 Water Tower Siting Study Fees Below is our anticipated fees and hours needed in order to complete the tasks outlined in the scope of work section above. Project Project Administrative "Iota( Tasks Manager\ GIS Cost Principal Engineer Assistant Hours Development of proposed 4 4 4 12 $1,900.00 tower sites Modeling proposed tower sites to determine pressures,flows, 2 24 8 34 $4,810.00 etc. Anal sis of volume needed 2 8 10 $1,530.00 Anal sis of stora:e t se 8 8 $1,120.00 Develos cost estimates 2 4 6 $970.00 Develo. schedule 4 4 8 $1,380.00 Prepared draft and final 8 8 16 32 $4,200.00 technical memorandum Totals 110 $15,910.00 In accordance with the City of Farmington'"s project requirements,Bolton &Menk proposes to complete the scope of work as described above for a not-to-exceed hourly fee of$15,910. Schedule We understand that this is time-sensitive work and will dedicate the resources necessary to complete the scope of work as quickly as possible.We are committed to following the schedule outlined below: Proposal Submittal Tuesday,December 10,2019 Proposal Approval Monday,December 16,2019 Draft Study Memorandum Monday,January 20, 2020 Final Study Memorandum Friday,January 31,2020 Thank you,again,for inviting Bolton&Menk to offer you this scope and fee letter as well as your continued consideration of our services to the City of Farmington. We look forward to working with you and the City on this project. If you have any questions regarding our proposal,please do not hesitate to call us. Sincerely, Bolton&Menk,Inc. -1(ArA Seth A.Peterson,P.E. Principal Engineer cc: Brian Hilgardner,P.E.,Bolton&Menk,Inc. C:\Users\jackieca\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\3H4KDOAW\tower siting scope fee letter.docx Bolton&Monk is an equal opportunity employer. CITY OF O 430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 I�111� O FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Katy Gehler, Public Works Director SUBJECT: Approve a Contract with the City of Red Wing for Solid Waste Processing-Public Works DATE: December 16, 2019 INTRODUCTION At the October 2019 work session, city staff discussed utilization of the additional capacity of the Red Wing Resource Recovery facility with their expansion for solid waste processing. We also discussed the potential for a partnership with the City of Red Wing and DSI making use of the new DSI transfer facility in Lakeville which received the final approvals late November 2019. With this partnership,we are able to share transportation costs with Red Wing utilizing their backhaul where unprocessable wastes from the Red Wing facility would be hauled back to the metro for landfilling. DISCUSSION Staff has been working towards contracts with both the City of Red Wing and DSI. The Waste Processing Agreement with Red Wing is being presented for consideration. Staff will be working with DSI and Red Wing to complete trial loads in an effort to allow DSI to refine the assumptions for transportation which may translate to a refined costs for both cities. The Waste Processing Agreement mimics the agreement that Red Wing put in place with Goodhue County for processing all of the county's waste.The agreement covers typical terms of a service of this type. The term of this initial agreement is for two years with the expectation to review the partnership for a potential longer term contract in the future. The rates are based on operational assumptions and financial projections for the new facility. Red Wing is striving to secure agreements with regional municipalities to ensure the new facility can operate at a capacity that is conducive to achieving environmental, operational and economic goals. With this in mind, a rate of$99 per ton was presented for 2020 and $108 per ton for 2021. The agreement has been reviewed by both cities and approved for form by the City Attorney. The Red Wing City Council approved the contract on December 9, 2019. BUDGET IMPACT The rate for 2020 was a slight reduction from that calculated as part of the original projections and incorporated into our financial model. The rate for 2021 is in line with the assumptions. ACTION REQUESTED Approve the contract and authorize the Mayor and City Administrator to execute the same. ATTACHMENTS: Type Description D Contract Waste Processing Agreement Solid Waste Processing Agreement Between City of Red Wing, Minnesota And City of Farmington, Minnesota Solid Waste Processing Agreement This Solid Waste Processing Agreement("Agreement')is between CITY OF RED WING (hereinafter referred to as "Red Wing") and CITY OF FARMINGTON (hereinafter referred to as "Farmington"), together the "Parties," both of which are political subdivisions of the State of Minnesota. it is effective as of the date both Parties have executed this Agreement ("Effective Date"). RECITALS WHEREAS, pursuant to Minn. Stat, §115A.941 and 412.221,Subd.22,Farmington is organized for the collection and processing of Mixed Municipal Solid Waste(MMSW). WHEREAS, Farmington desires to transport MMSW to the Resource Recovery Facility owned and operated by Red Wing for acceptance and processing consistent with the goals in Minn. Stat. §115A.02 In light of the mutual considerations herein expressed, and pursuant to the authority provided in the Joint Powers Act, Minn. Stat.§471,59, the Parties agree as follows: ARTICLE 1. Definitions When used in this Agreement, unless otherwise specified or unless the content requires a different meaning, the following terms shall have the following respective meanings: Acceptable Waste shall mean MMSW and Solid Waste that meets the requirements of the Resource Recovery Facility, as determined by the Facility, but specifically excludes Unacceptable Waste. Acts shall mean Minnesota Statutes, Chapters 115A and 412, as they may be amended from time to time. Agreement shall mean this Solid Waste Processing Agreement, including any amendments thereto. Force Maieur@ shall mean, after the Effective Date of this Agreement, acts of the public enemy,wars, strikes or other labor disturbances, riots, disorders, civil disturbances, lightning,fire, storms, floods, washouts, restraints of government or judicial bodies, including restraints in the form of injunctions, orders, rules or regulations prohibiting or modifying performance of this Agreement, sabotage, explosions, governmental preemptions in cannection.with a national emergency, interference by or erroneous regulations imposed by civil or military authorities, and any other occurrence beyond the reasonable control of the nonperforming party. Mixed Municipal Solid Waste (MMSW)shall mean garbage, refuse, and other Solid Waste from residential, commercial, industrial, and community activities that the generator of the waste aggregates for collection and that may be accepted at the Facility. MMSW does not include auto hulks, street sweepings, ash, mining waste, sludges, tree and agricultural wastes, lead acid batteries, and Unacceptable Waste. Resource Recovery Facility (Facility) shall mean Red Wing's facility for processing of Solid Waste, and production of Refuse-Derived Fuel ("RDF"), located in Red Wing, Minnesota. The Facility also separates recyclable materials from waste for recycling. Refuse Derived Fuel (RDFT shall mean a product resulting from the processing of Acceptable Waste in a manner that reduces the quantity of noncombustible material present in the waste, reduces the size of waste components through shredding or other mechanical means, and produces a fuel suitable for combustion in existing or new solid fuel-fired boilers. Tip Fees shall mean the fees established by Red Wing pursuant to Section 4.2 and as adjusted in Section 4.3 of this Agreement. Mk shall mean the Solid Waste Campus,which Includes the Resource Recovery Facility, located at 1873 Bench Street in Red Wing, Minnesota. Solid Waste means garbage, refuse, sludge from a water supply treatment plant or air contaminant treatment facility, and other discarded waste materials and sludges, in solid, semisolid, liquid, or contained gaseous form resulting from industrial, ..commercial, mining and agricultural operations, and from community activities, but does not include hazardous waste; animal waste used as fertilizer; earthen fill, boulders, rock; concrete diamond grinding and saw slurry associated with the construction, improvements, or repair of a road when deposited on the road project site in a manner that is in compliance with best management practices and rules of the agency; sewage sludge; solid or dissolved material in domestic sewage or other common pollutants in water resources, such as silt, dissolved or suspended solids in industrial wastewater effluents or discharges which are point sources subject to permits under section 402 of the Federal Water Pollution Control Act, as amended, dissolved materials in irrigation return flows; or source, special nuclear, or by-product material as defined by the Atomic Energy Act of 1954, as amended. State shall mean the State of Minnesota. Unacceptable Waste shall mean any material described in Exhibit A, attached to and incorporated Into this Agreement, and as may be amended from time to time by the Facility. ARTICLE 2. Authority: Terra 2,1 Authority. This Agreement is entered into pursuant to the Acts as an Integral part of the programs of Red Wing and Farmington for solid waste management. 2.2 Terms This Agreement shall commence on the effective date and run through December 31,2021. The parties may agree to extend the contract past the initial term upon mutual consent. ARTICLE 3.Waste Processing 3.1 Waste Delivery Aareement, Farmington or Its contract hauler(Hauler) may deliver Acceptable Waste generated in Farmington to the Facility. Hauler shall have a limited license to enter the Facility for the sole purpose of off-loading Acceptable Waste at an area designated, and in the manner directed, by the Facility. Hauler shall (and shall ensure that its subcontractors) comply with all rules and regulations of the Facility. Red Wing will notify Farmington if the hauler is not following such rules and may reject waste, deny hauler (or its subcontractors) entry to its Facility, and/or terminate this Agreement in the event of Hauler's failure to follow such rules and regulations. 3.2 Processing MMSW. Red Wing shall accept, become responsible for, and process or otherwise appropriately manage all Acceptable Waste generated within Farmington and delivered to the Facility by Farmington or its Hauler. Red Wing and Farmington reasonably estimate that the total tonnage of Acceptable Waste delivered by Farmington will equal or exceed 7,500 tons per year. 3.3.3 Unacceptable Waste, Farmington shall have the responsibility to work with their contract hauler to minimize the amount of Unacceptable Waste delivered to the Facility. Red Wing shall have responsibility to inform Farmington and the Hauler of Unacceptable Waste. At its sole discretion, Red Wing may assure proper management of any Unacceptable Waste delivered to the Site by whatever means Red Wing may reasonably determine, including delivery of such Unacceptable Waste to a licensed landfill. Farmington shall reimburse Red Wing for its costs in managing such waste. Red Wing agrees that it will dispose of such materials in compliance with applicable State and Federal laws. ARTICLE 4. TiD Fee 4.1 Tin Fee. A Tip Fee will be charged to Farmington by Red Wing at a rate per ton of waste tipped by Farmington as measured at the Red Wing scale. Red Wing shall invoice Farmington on a monthly basis for the waste delivered to the facility. Payment on the invoice shall be made by Farmington within thirty (30)days of the invoice date. Farmington shall pay the invoices in the same manner as other financial obligations of the city. The Tip Fee shall be based on the cost to operate and maintain the Facility as well as an incremental amount to recapture capital costs. The Facility runs as a city enterprise and utilizes fund balance for cash flow and capital reserve, but does not utilize business profit. The Tip Fee for Farmington shall be the same as that charged to residents of Red Wing for comparable service. 4.2 Tia Fees,,The Tip Fee is based upon financial projections prepared by Red Wing and reviewed by and agreed to by Farmington. The Tip Fee charged to Farmington by Red Wing for the first year of the contract, running January 1, 2020 to December 31, 2020, shall be Ninety-Nine Dollars ($99.00)per ton. The Tip Fee charged to Farmington by Red Wing for the second year of the contract, running January 1, 2021 to December 31, 2021, shall be One Hundred Eight Dollars ($108.00) per ton. ARTICLE 5. Interruotion of Service 5.1 Maintenance Interruption. Notwithstanding anything to the contrary herein, Red Wing shall have the right without liability to Farmington, its officers, employees, agents, or any person, to interrupt, reduce, or discontinue service for purposes of inspection, maintenance, repair, replacement, construction installation, removal or alteration of equipment, buildings, or other personal property located at or associated with the Facility. Red Wing shall give Farmington written notice of any expected interruption of service at least fifteen (15) days prior to the date of said interruption and shall inform Farmington of the estimated length of any interruption. During such maintenance interruptions, Red Wing will continue to accept Acceptable Waste generated in Farmington and delivered to the Facility. 5.2 Force Maieure,Neither Party shall be liable for any failure to perform or delay in performance,when and to the extent that such performance is prevented by circumstances,which are caused by or arise out of Force Majeure.The nonperforming party shall give written notice advising of such Force Majeure, and that its obligations insofar as they are affected by such Force Majeure shall be suspended during that continuance,of any inability so caused. The nonperforming party shall use good faith efforts to remove the Force Majeure occurrence or condition as soon as possible, provided that the nonperforming party shall not be required to settle strikes or other labor disturbances on terms that it believes to be inconsistent with its best interests. ARTICLE 6. General Covenants 6.1 Indemnification,. Each party to this Agreement shall be liable for its own acts to the extent provided by law and, to the extent permitted by law, hereby agrees to indemnify, hold harmless, and defend the other party, including its officers, employees, and agents, against any and all liability, loss, costs,damages, expenses, claims, or actions, which the other party, including its officers, employees, and agents, may sustain, incur, or be required to pay, arising out of or by reason of any act or omission of the party, its agents, officers, and employees, in the execution, performance, or failure to adequately perform the party's obligations pursuant to the terms of this Agreement. Provided, however, that the parties' liability hereunder shall be limited by the provision of Minn. Stat. Ch. 466 (Tort Liability, Political Subdivisions) and any other applicable law. ARTICLE 7. Evens of Default: Remedies 7.1 Farmington Events of Default,The following shall constitute a Farmington Event of Default, whether the event or condition is voluntary or involuntary or by operation of law: a. Failure of Farmington to observe or perform any covenant or obligation to be observed or performed by Farmington pursuant to this Agreement and a continuation of such default for a period of sixty(60)days following a written Notice of Default from Red Wing specifying the default. 7.2 Red Wino Events of Default. The following shall constitute a Red Wing Event of Default, whether the event or condition is voluntary or involuntary or by operation of law: a. Failure of Red Wing to observe or perform any covenant or obligation to be observed or performed by Red Wing pursuant to this Agreement and a continuation of such default for a period of sixty(60)days following a written Notice of Default from Farmington specifying the default 7.3 Termination by Red Wing. Red Wing may terminate this Agreement upon 180 days written notice to Farmington under the following conditions: a. Red Wing determines that it is not economically feasible to operate the Facility due to any cause, including, but not limited to the termination of adequate resources to accept the RDF created; or b. The occurrence of Acts of God or other uncontrollable events; or c. The EPA and/or MPCA and/or State of Minnesota adopt rules and/or regulations which prohibit or restrict the operation of the Facility. 7.4 Notice of Default. Unless otherwise provided, no event shall constitute a default giving rise to the right to terminate unless and until written Notice of Default is given to the defaulting party, specifying the particular event, series of events, or failure constituting the default and specifying the cure period, if longer than 60 days. 7.5 Remedies,The non-defaulting party may upon the occurrence of an Event of Default take such action as it may determine to be necessary or appropriate to enforce the performance by the other party of its obligations under this Agreement, including, but not limited to, termination of this Agreement, and/or a suit in any court having Jurisdiction over the parties hereto seeking specific performance or other injunctive or equitable relief as well as damages. ARTICLE 8. Miscellaneous Provisions 8.1 Amendment and Waiver, Except as otherwise expressly provided herein: a. Neither this Agreement, nor any terms herein, may be terminated, amended, altered, or modified, except by an instrument in writing executed by the Parties; provided no such amendment shall conflict with or cause a default, penalty, new lien or acceleration of performance under any indenture caused by the operation of the Facility. b. Any waiver at any time by Red Wing or Farmington of its rights concerning a default or any matter arising from or incidental to this Agreement, shall not constitute a waiver concerning any subsequent default or other matter. 8.2 Assignments: Successors,This Agreement shall inure to the benefit of and be binding upon the successors and the assignees of the parties hereto, provided, however, that each party hereto may not transfer, sell, convey, or assign its interest in this Agreement without the prior written consent of the other party, which shall not be unreasonably withheld. In the case where the transfer, sale, conveyance, or assignment of one party's interest in this Agreement is allowed, that party shall be responsible to ensure that the person or entity acquiring such interest fully assumes in writing all said party's obligations under this Agreement, and the writing immediately shall be provided to the other party. No such transfer, sale, conveyance or assignment shall relieve the party making such transfer, sale, conveyance or assignment of its obligations hereunder. 8.3 Aanlicable Law. The validity, performance, construction, interpretation and enforcement of this Agreement, and all terms covenants, and conditions therein, shall be governed and construed in accordance with the laws of the State. 8.4 Notices.All notices or other communications hereunder are effective when mailed by certified or registered mail, return receipt requested, postage paid, to the other party. Red Wing and Farmington may, by written Notice by each to the other, designate any address to which Notices or other communications to them shall be sent when required or contemplated by this Agreement. Until otherwise provided, all Notices and communications shall be addressed as follows: To Red Wing: City Administrator City of Red Wing 315 West 41h Street Red Wing, MN 55066 To Farmington: City Administrator City Hall 430 Third Street West Farmington, MN 55024 8.5 Execution Counteroarts. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 8.6 Severability, If any provision of this Agreement shall be held invalid, Illegal or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof, and the remaining provisions shall not in any way be affected or impaired thereby. IN WITNESS WHEREOF, CITY OF RED WING AND CITY OF FARMINGTON have caused this Agreement to be executed in their respective names and have caused their seals be affixed hereto, CITY OF RED WING By: Sean Dowse, Mayor By: (6.ALLitzv\_4p. Kay Kuhlmann, Council Administrator By: Teri L. Swanson, City Clerk Approved as to form and execution this 9' "day of a.ce her , 2019. O E. 'a City Attorney STATE OF MINNESOTA ) )ss. COUNTY OF GOODHUE ) The foregoing Instrument was acknowledged before me this Crth day of ee•e`z{i, Yr 2019, by Sean Dowse, Kay Kuhlmann and Teri L. Swanson, respectively the Mayor, Council Administrator and City Clerk of the City of Red Wing, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. I� • ✓f• .. .ifiYY Notary Public e:,j,; , DANIEL JAMESSIMONSON ,--, . r Notary Public-Minnesota My Commission Expire Jan 31,2023 r CITY OF FARMINGTON Todd Larson, ayor By: //('C 47--Dald McKministrator • ApprRed as to form and execution this/lay o�J • i I f / �oel Jamnl', City .ttorney STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this /4,`�.1� day of 406,•‘•.,.-ce,,.) 2019, by Todd Larson and David McKnight, respectively the Mayor and City Administrator of the City of Farmington, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. ,4t, CYNTHIAA MULLER rk� NOTARY PUBLIC No ary Public �` , MINNESOTA , ,` My Commission Expires Jan,31,2025 EXHIBIT A Unacceptable Waste shall include but not be limited to the following: • Hazardous Waste, as defined by Federal and State laws and/or regulations, or any other waste public authorities do not allow to be incinerated • Explosive Waste • Liquid Waste of any type including waste oils and antifreeze • Radioactive Waste • Florescent bulbs • • Animal remains • Gasoline and flammable Liquids • Hospital Waste, which is infectious, hazardous, inflammable or toxic; human remains • Tires • Large car parts • Steel fence materials and steel banding • Large wood items • Construction or demolition debris or building waste. • Pesticides, insecticides, chemicals, paint, solvents, or other toxic materials (when not normally in residential or commercial waste) • PVC plastics (in large quantities such as waste from a plastic plant) • Appliances, white goods, and auto, truck, utility vehicles or tractor batteries • Furniture, mattresses, bedsprings or other large household items • Yard and garden waste, hedge or tree trimmings • Cathode ray tubes (televisions and computer monitors) 104556797,3 CITY OF 0 430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Katy Gehler, Public Works Director&Tony Wippler, Planning Manger SUBJECT: Approve Encroachment Agreements Related to Mystic Meadows-Public Works DATE: December 16, 2019 INTRODUCTION City staff has been working towards compliance of encroachments around Outlot D of Mystic Meadows, commonly known as Lake Ann. There were 31 property owners that were identified as having encroachments within the buffer.There are six properties that have removed the encroachments such that an agreement is not necessary. At the October 21,2019 meeting the city council approved the first round of encroachment agreements that included ten properties. Staff continues to work towards compliance with the remaining properties. DISCUSSION Attached is an Encroachment Agreement for 19852 Devrie Path. This agreement needs to be approved by the city council and the fully executed agreement will be recorded with the county. Should either party wish to terminate the agreement,the property owner should work with the city to prepare the necessary documents to rescind the agreement. BUDGET IMPACT N/A ACTION REQUESTED Approve the agreement and authorize the Mayor and City Administrator to execute the same. ATTACHMENTS: Type Description D Contract Encroachment Agreement • (reserved for recording) ENCROACHMENT AGREEMENT THIS AGREEMENT("Agreement") is made this 2v"r—day of /J0t4sr- , 2019, by and between the CITY OF FARMINGTON, a municipal corporation under the laws of the State of Minnesota("City"), and Brent and Amber Gilchrist, husband and wife,as joint tenants,and their successors and assigns ("Landowners"). RECITALS: WHEREAS, Landowners are the fee owners of the property legally described as Lot 19, Block 6 of Mystic Meadows 1st Addition; and WHEREAS,the Landowners own property that abuts Outlot D, Mystic Meadows 1st Addition; and WHEREAS, Landowners acknowledge that the City owns Outlot D, Mystic Meadows 1st Addition (the "Property")and currently uses it as a stormwater management pond, buffer strip and recreational trail; and 1 202411v1 WHEREAS, Landowners seek permission from the City to keep encroachments upon the City's outlot for the purpose of accessing the pond and using the area for non- commercial recreational purposes for the Landowners and their guests. WHEREAS,Allowance of encroachments does not grant the Landowners or their guests the right to exclusive use of the City's property and they may not prohibit the public from using the Property. NOW,THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration,the parties agree as follows: 1. Allowed Encroachment: The City hereby approves a non-exclusive encroachment on and over a portion of the City's Outlot D, Mystic Meadows 1st Addition by Landowners for the personal property and improvements (the "Encroachments")and using the defined area for non-commercial purposes for the Landowners and their guests,subject to the terms of this Agreement. The Property, Encroachments and allowable uses are identified on Exhibit A attached hereto (the "Site Plan"). 2. Encroachment Maintenance: The Landowners shall be responsible for all costs relating to maintenance and repair of the Encroachments and shall retroactively obtain all permits that would have been required by the City for their construction or placement. The Landowners will be responsible to maintain the Encroachments in 2 202411v1 good condition and to promptly repair or remove those items that are not in good condition. 3. Buffer Maintenance: As a condition of being allowed to use the City's outlot as specified in this agreement,the Landowners agree to maintain the buffer areas to promote native species in compliance with city standards in consultation with the City. Generally,allowable maintenance strategies include seasonal mowing to manage weeds and invasive species and planting approved native species. Only natural plant material is allowed in the City buffer. No other landscaping may be completed in the buffer other than the Encroachments defined in this agreement. This includes materials such as, but not limited to, mulch, sand, pavers, and rocks along with other • manmade structures. Storage of boats or other personal items is not allowed in the buffer. 4. Docks: The city will allow the Landowners to install a dock up to 120 square feet in area to access the stormwater pond commonly known as "Lake Ann". All docks and platforms removed seasonally must be stored on private property or offsite. The Landowner will be required to annually obtain a permit from the City along with providing proof of insurance. 5. Recreational Uses: The City maintains stormwater ponds for the purpose of managing surface water flows and removing contaminates from the runoff before it is discharged to public waters. The City does not test the water quality against any 3 202411v1 standards for any recreational uses. Recreational uses may be allowed or not restricted based on the most current version of City codes and policies. Storing or operating a boat on a city pond equipped with a motor of any kind is prohibited. 6. Agreement Sunset:The Landowners agree to remove the Encroachments and restore the buffer at the end of the Encroachments life cycle or upon sale of the property,whichever occurs first. 7. Termination: Landowners further agree that if the City deems it necessary to remove any encroachment from its property,that the Landowners are responsible for removing the encroachments and restoring the Property at the Landowners' sole expense. 8. Waiver of Assessment: In the event that the Landowners fail to take any action required in this Agreement and the City incurs costs to correct any encroachment on the City's property,the Landowners agree that the City may take any and all actions permitted by law to collect the costs incurred by the City. This shall include levy of an assessment against the Property and the Landowners waive any and all rights to challenge or appeal the assessment. 9. Non-Abandonment: Nothing in this Agreement shall be deemed a waiver or abandonment of the City's property rights or ownership of the property. 10. Insurance: Landowners shall obtain and maintain a liability insurance policy, naming the City as an additional insured,which provides minimum coverage of 4 202411v1 $1,000,000 for damage to the Property of others or injury or death to persons arising out of any property placed on, or use of the City outlot by the Landowners. Such coverage shall be on an occurrence basis and shall include contractual liability coverage with respect to the indemnity obligation above. Said policy shall contain a clause which provides the insurer will not change, non-renew, or materially change the policy without first providing the City thirty(30) days prior written notice. The Landowners shall provide the City with a Certificate of Insurance for such coverage that specifically details the conditions in this Agreement. A Certificate of Insurance shall annually be provided to the City. Failure to provide proof of a policy meeting these standards shall terminate this agreement. 11. indemnification: Landowners and their successors and assigns do hereby agree to defend, indemnify,and hold the City harmless from any and all costs and expenses,all claims and liability, including attorney's fees, relating to or arising out of the grant of the Landowners of permission to encroach on the City's property for the construction, maintenance, use, and operation of the Property and Encroachments. 12. Notices: All notices, requests,demands and other communications hereunder shall be in writing and shall be deemed given if personally delivered or mailed,certified mail, return receipt requested, to the following: TO CITY: City Administrator City of Farmington 430 Third Street Farmington, MN 55024 5 202411v1 TO LANDOWNER: Brent and Amber Gilchrist 19852 Devrie Path Farmington, MN 55024 13. Agreement Recorded: This Agreement shall be recorded against the title to the Property. CITY OF FARMINGTON By: -- �---.. Todd Larson, Mayor By: vid McKnigh , 't A •ministrator STATE OF MINNESOTA ) )ss. COUNTY OF DAKOTA The foregoing instrument was acknowledged before me this /4, day of . L7..—,42019, by Todd Larson and David McKnight, respectively the Mayor and City Administrator of the City of Farmington, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. { c, CYNTHIAA MULLER I (7-",,.22":(--L ; 4r }•2f6f flett*,4NOTARY PUBLICN'dtary Public r� MINNESOTAMy Commission Expires Jan.31,2025 I 6 202411v1 LANDOWNERS: BRENT AND AMBER GILCHRIST fJ'4' r Cj sxlCAil\C'y✓J [print name] 9,4.-6// /,4V- i4 nils &/lchr1)f [print name] STATE OF MINNESOTA ) )ss. COUNTY OF ocr.,k _ ) The foregoing instrument was acknowledged before me this of day of y( tlAvni , 2019, by &cr-A-- G.LcAI'J , and tMb‘r , husband and wife, as joint tenants, Fee Owners. Notary Public SANDRA L.SHELTON NCy PubIC wannosots r-11 yam .31,2020 My Commission ExP!ms. This instrument was drafted by: CAMPBELL KNUTSON Professional Association Grand Oak Office Center I 860 Blue Gentian Road,Suite 290 Eagan, Minnesota 55121 Telephone: (651)452-5000 [iii] 7 202411v1 EXHIBIT A— SITE PLAN ALLOWED ENCROACHMENT AND ENCROACHMENT AREA ..� rt r :Al �_+. _ tet^' � .( �;: ����' i �, -yds ' . ,- 'Tx `. xd .. • " -,„,..-1.1-4...' :;r ii a � t'ax r� 1•..y,,, yu r ',� PID: 145125006190 r,�,;'..1+ � ; ` - �' r; /I`" x 19852 Devrie Path ;�.• {� el- * .` ... ,}�' `'' ,......-441-17'..,.....•*` '�; *..' , as •—Z.:: t + c.v.,t"5< i•,ti. r.1 F. T.t' �x , �� '* t . ^~ '` '' ENCROACHMENT --. r . �` • 1 � ' 1 pit•A : 4 '. �, i isit*,100(!1,, R �� �- . t � � AREA .L1:•'',',...:: ` . , ,�. � • w ■� �4' : rt. r a 'Sr+ a : . .i! � � ' ' a «:' ti * x�!/r , x . ti 7�4- . f rte} a' ' 7tfi. ` +` r ,7° a.tint .• at 'g "'''' 4 , '+M ..r ; . e. .:'A'j. ot",. +iv: �� , .. � .+xYa• �"i s i ,. • • - ' ` i! ♦ .... '•.t '".1' 4 .'},+ ate* At N , Not to Scale , P oto Captured April 20,2019 t „al it a� " 6145! Property Information PID: 145125006190 Address: 19852 Devrie Path err441 *` * s � Owner: Brent&Amber Gilchrist { , e -OMr 71 Allowable Encroachments r ty _""i .`. `, A—Rock border and sand area reduced to 10 � T R 2n, feet in width upon entering into this �` Sr-•"; w4- J `,., ,411'2 3 agreement. ! yy y ,. if k Lti1 "�-�}:"` B—Paver steps Note: Raised garden beds to be removed upon Photo Captured May 15,2019 entering into this agreement. CITY OF O430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 © FarmingtonMN.gov ___. ..........-------....omeEnn . TO: Mayor, Councilmembers and City Administrator FROM: Teah Malecha, Finance Director SUBJECT: Approve Bills-Finance DATE: December 16, 2019 INTRODUCTION Attached is the November 25 - December 11, 2019 city council check register and recently processed automatic payments for your consideration. DISCUSSION NA BUDGET IMPACT NA ACTION REQUESTED Approve the attached payments. ATTACHMENTS: Type Description D Backup Material Check Register 11/25/19-12/11/19 0 a N 0 N N N N N N N N m CO m m m m m m m 0) m m m O O O O O O O O O O O O O O O 000000000 ❑ O O O a O O O a O O O O a O m a a a a O a a O O co r o a O o O o O C. C) 0 0 0 0 0 m O 0 0 0 0 0 0 0 0 O r r O M 0 0 O N M a UO 0 0 N M a U O OO O O CO O CO O O O CO o O O O O O O O ov. O CO O a 0tu m 5 CC Z Z K O W U) W U) W W W (\ U) Z 0. 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U U U U U (yy O N) O v) O v) O u) O a ( \IC: 111/4.43 M M M M 1 O O O O o O I *71 O O co Z O O O O \\ V O M co co co II O m m a 0 co °I < n m a 1- o C J M c CO V F CD a, LU W LU n m 0 0 0 W n CC rC I— W CC Pa cc Cal }U}a0 C r F r O P. Z v U U U z • a 0 0 0 w o E W W W W 22. m jp N co a m W FO ✓ - .- a U° = U U U U 0 t CO 0 0 0 0 m CC °U) v°)) OOD v m m d j (V M [O O) N o 0 n E c co" O (IDE • C U' a O E J N N C �p m 0 N E T Y per. “-) N U N CC z L U CITY OF O 430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 l�� © FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Teah Malecha, Finance Director SUBJECT: Issuance and Sale of General Obligation Equipment Certificates, Series 2020A DATE: December 16, 2019 INTRODUCTION The city has the purchase of a ladder truck, Ladder 1, included in the Capital Improvement Plan (CI P) in 2020.The truck will be ordered in early 2020 with the delivery near the end of 2020.The purchase of Ladder 1 relies on the sale of equipment certificates. DISCUSSION Staff has worked with the city's financial advisor, Northland Securities,to structure a$1,365,000 sale of equipment certificates to finance the purchase of Ladder 1 to replace Engine 2. The equipment certificates would be awarded January 21, 2020,with the closing occurring in February 2020. Staff is currently working on the final specifications of Ladder 1. The amount of the truck is not-to- exceed $1,300,000 plus the cost of debt issuance. The sale amount will be updated prior to the January 21st sale. Staff has reviewed the city's overall long-term financial plan and the debt is structured as five-year equipment certificates which fit into the city's CI P for equipment replacement. A payment for interest only will be due in 2021.The principle and interest for 2022-2026 will be included in the debt levy beginning in 2021. The Finance Plan for the bond sale has been included. It provides more information regarding the bond sale along with a preliminary debt service schedule.The schedule is subject to change based upon the city's credit rating and interest rate at the time of the sale. BUDGET IMPACT Once the equipment certificates are sold,the city council will be required to levy 105%of the scheduled principle and interest due on the equipment certificates starting in 2021. The initial payment for interest only will be paid in 2021 and has been structured as part of the debt issuance. The debt payments have been included in the city's long-term financial plan. ACTION REQUESTED Adopt the enclosed resolution providing for the sale of$1,365,000 General Obligation Equipment Certificates, Series 2020A. ATTACHMENTS: Type Description 0 Backup Material Finance Plan Resolution Authorizing the Issuance and Sale D Resolution of$1,365,000 General Obligation Equipment Certificates, Series 2020A Finance Plan City of Farmington, Minnesota $1,365,000 General Obligation Equipment Certificates of Indebtedness, Series 2020A December 16, 2019 NORTHLAND SECURITIES 150 South 5th Street,Suite 3300 Minneapolis,MN 55402 612-851-5900 800-851-2920 www.northlandsecurities.com Member FINRA and SIPC I Registered with SEC and MSRB Contents Executive Summary 1 Issue Overview 2 Purpose 2 Authority 2 Structure 2 Security and Source of Repayment 2 Plan Rationale 2 Issuing Process 3 Attachment 1-Preliminary Debt Service Schedule 4 Attachment 2-Related Considerations 5 Bank Qualification 5 Arbitrage Compliance 5 Continuing Disclosure 5 Premiums 5 Rating 6 Attachment 3-Calendar of Events 7 Attachment 4-Risk Factors 8 Executive Summary The following is a summary of the recommended terms for the issuance of $1,365,000 General Obligation Equipment Certificates of Indebtedness, Series 2020A (the "Certificates" or "2020A Certificates"). Additional information on the proposed finance plan and issuing process can be found after the Executive Summary, in the Issue Overview and Attachment 2- Related Considerations. Purpose Proceeds from the Certificates will be used to purchase a ladder truck. Security The Certificates will be a general obligation of the City. The City will pledge ad valorem taxes for payment of the Certificates. Repayment Term The Certificates will mature annually each February 1 in the years 2022-2026. Interest on the Certificates will be payable on February 1,2021 and semiannually thereafter on each August 1 and February 1. Estimated Interest Rate* Average coupon: 1.54% True interest cost(TIC): 1.72% *Rates as of December 6,2019,plus 0.25%. Prepayment Option The Certificates will not be subject to optional redemption prior to maturity. Rating A rating will be requested from Standard and Poor's(S&P).The City's general obligation debt is currently rated "AA+"by S&P. Tax Status The Certificates will be tax-exempt,bank qualified obligations. Risk Factors There are certain risks associated with all debt. Risk factors related to the Certificates are discussed in Attachment 4. Type of Bond Sale Public Sale-Competitive Bids Proposals Received Tuesday,January 21,2020 @ 10:30 A.M. Council Consideration Tuesday,January 21,2020 @ 7:00 P.M. Northland Securities,Inc. Page 1 Issue Overview Purpose Proceeds from the Certificates will be used to purchase a ladder truck. The table below contains the sources and uses of funds for the bond issue. Sources Of Funds Par Amount of Bonds $1,365,000.00 Total Sources $1,365,000.00 Uses Of Funds Deposit to Project Construction Fund 1,300,000.00 Costs of Issuance 31,600.00 Deposit to Capitalized Interest(CIF)Fund 19,600.88 Total Underwriter's Discount (0.700%) 9,555.00 Rounding Amount 4,244.12 Total Uses $1,365,000.00 Authority The Certificates will be issued pursuant to the authority of Minnesota Statutes,Chapter 475 and Section 412.301. Under Section 412.301, Capital Equipment includes,but is not limited to,road construction and maintenance equipment,public safety equipment and computer hardware and software,which must have a useful life at least as long as the term of the debt issued to finance the equipment. The term of the Certificates cannot exceed 10 years from the date of issuance. If the amount of the Certificates exceeds 0.25% of the estimated market value of the taxable property in the City,a reverse referendum provision applies. The City's estimated market value for taxes payable in 2019 is $2,088,458,700 ($2,088,458,700 x 0.0025 = $5,221,146.75). Since the Certificates do not exceed$5,221,146.75,the reverse referendum provision does not apply. Structure The Certificates have been structured to result in relatively level annual debt service payments over the five-year life of the Certificates. The proposed structure for the issue and preliminary debt service projections are illustrated in Attachment 1. Security and Source of Repayment The Certificates will be general obligations of the City. The finance plan relies on the following assumptions for the revenues used to pay debt service,as provided by City staff: • Property Taxes.The revenues needed to pay debt service on the Certificates will come from property tax levies. The initial projections show an annual tax levy, averaging $300,104 annually,is needed,which includes the statutory requirement of 105% of debt service.The levy will be adjusted annually. The initial tax levy will be made in 2020 for taxes payable in 2021. The first interest payment, due on February 1, 2021, will be due before the first collection of taxes and will be made from capitalized interest included in the certificate issue. Plan Rationale The Finance Plan recommended in this report is based on a variety of factors and information provided by the City related to the financed project and City objectives,Northland's knowledge of the City and our experience in working with similar cities and projects.The issuance of General Northland Securities,Inc. Page 2 Obligation Equipment Certificates of Indebtedness provides the best means of achieving the City's objectives and cost effective financing.The City has successfully issued and managed this type of debt for previous projects. Issuing Process Northland will receive bids to purchase the Certificates on Tuesday, January 20, 2020 at 10:30 AM. Market conditions and the marketability of the Certificates support issuance through a competitive sale.This process has been chosen as it is intended to produce the lowest combination of interest expense and underwriting expense on the date and time set to receive bids. The calendar of events for the issuing process can be found in Attachment 3. Municipal Advisor:Northland Securities,Inc.,Minneapolis,Minnesota Bond Counsel:Dorsey&Whitney,LLP,Minneapolis,Minnesota Paying Agent:U.S. Bank,National Association,St.Paul,Minnesota Northland Securities,Inc. Page 3 Attachment 1 - Preliminary Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 02/19/2020 - - - - - 02/01/2021 - - 19,600.88 19,600.88 19,600.88 08/01/2021 - - 10,316.25 10,316.25 - 02/01/2022 265,000.00 1.400% 10,316.25 275,316.25 285,632.50 08/01/2022 - - 8,461.25 8,461.25 - 02/01/2023 270,000.00 1.450% 8,461.25 278,461.25 286,922.50 08/01/2023 - - 6,503.75 6,503.75 - 02/01/2024 275,000.00 1.500% 6,503.75 281,503.75 288,007.50 08/01/2024 - - 4,441.25 4,441.25 - 02/01/2025 275,000.00 1.550% 4,441.25 279,441.25 283,882.50 08/01/2025 - - 2,310.00 2,310.00 - 02/01/2026 280,000.00 1.650% 2,310.00 282,310.00 284,620.00 Total $1,365,000.00 - $83,665.88 $1,448,665.88 - Date And Term Structure Dated 2/19/2020 Delivery Date 2/19/2020 First available call date Non-Callable Call Price - Yield Statistics Bond Year Dollars $5,426.75 Average Life 3.976 Years Average Coupon 1.5417309% Net Interest Cost(NIC) 1.7178031% True Interest Cost(TIC) 1.7230620% All Inclusive Cost(AIC) 2.3416389% *Rates as of December 6,2019,plus 0.25%. Northland Securities,Inc. Page 4 Attachment 2 - Related Considerations Bank Qualification We understand the City(in combination with any subordinate taxing jurisdictions or debt issued in the City's name by 501(c)3 corporations) anticipates issuing$10,000,000 or less in tax-exempt debt during this calendar year. Therefore,the Certificates will be designated as"bank qualified" obligations pursuant to Federal Tax Law. Arbitrage Compliance Project/Construction Fund. All tax-exempt bond issues are subject to federal rebate requirements which require all arbitrage earned to be rebated to the U.S. Treasury. A rebate exemption the City expects to qualify for is the "small issuer" exemption because the City expects to issue less than$5,000,000 of tax-exempt bonds,including any 501(c)3 conduit financings,in calendar year 2020. Debt Service Fund. The City must maintain a bona fide debt service fund for the Certificates or be subject to yield restriction in the debt service fund. A bona fide debt service fund involves an equal matching of revenues to debt service expense with a balance forward permitted equal to the greater of the investment earnings in the fund during that year or 1/12 of the debt service of that year. The City should become familiar with the various Arbitrage Compliance requirements for this bond issue. The Resolution for the Certificates prepared by Bond Counsel explains the requirements in greater detail. Continuing Disclosure Type: Full Dissemination Agent: Northland Securities The requirements for continuing disclosure are governed by SEC Rule 15c2-12. The primary requirements of Rule 15c2-12 actually fall on underwriters. The Rule sets forth due diligence needed prior to the underwriter's purchase of municipal securities. Part of this requirement is obtaining commitment from the issuer to provide continuing disclosure. The document describing the continuing disclosure commitments (the "Undertaking") is contained in the Official Statement that will be prepared to offer the Certificates to investors. The City has more than $10,000,000 of outstanding debt and is required to undertake "full" continuing disclosure. Full disclosure requires annual posting of the audit and a separate continuing disclosure report,as well as the reporting of certain"material events."Material events set forth in the Rule,including,but not limited to,bond rating changes,call notices,and issuance of"financial obligations"(such as PFA loans,leases,or bank placements)must be reported within ten business days of occurrence. The report contains annual financial information and operating data that"mirrors"material information presented in the Official Statement.The specific contents of the annual report will be described in the Undertaking that appears in the appendix of the Official Statement.Northland currently serves as dissemination agent for the City,assisting with the annual reporting.The information for the Certificates will be incorporated into our reporting. Premiums In the current market environment,it is likely that bids received from underwriters will include premiums. A premium bid occurs when the purchaser pays the City an amount in excess of the par amount of a maturity in exchange for a higher coupon(interest rate). The use of premiums reflects the bidder's view on future market conditions,tax considerations for investors and other Northland Securities,Inc. Page 5 factors. Ultimately, the true interest cost ("TIC") calculation will determine the lowest bid, regardless of premium. A premium bid produces additional funds that can be used in several ways: • The premium means that the City needs less certificate proceeds and can reduce the size of the issue by the amount of the premium. • The premium can be deposited in the Debt Service Fund and used to pay principal and interest. Northland will work with City staff on the sale day to determine use of premium(if any). Rating A rating will be requested from Standard and Poor's (S&P).The City's general obligation debt is currently rated "AA+" by S&P. The rating process will include a conference call with the rating analyst. Northland will assist City staff in preparing for and conducting the rating call. Northland Securities,Inc. Page 6 Attachment 3 - Calendar of Events November 2019 December 2019 EMALIJKAis 1 2 1 2. 3 4 5 6 7 3 4 5 6 7 8 9 8 9 10 11 12 13 14 10 11 12 13 14 15 16 15 16 17 18 19 20 21 17 18 19 20 21 22 23 22 23 24 25 26 27 28 24 25 26 27 28 29 30 29 30 31 -__- January 2020 February 2020 < 1 2 3 4 ______ 1 5 6 7 8 9 10 11 2 3 4 5 6 7 8 12 13 14 15 16 17 18 9 10 11 12 13 14 15 19 20 21 22 23 24 25 16 17 18 19 20 21 22 26 27 28 29 30 31 - 23 24 25 26 27 28 29 Date Action Responsible Party December 9 Set Sale Resolution Sent to City for Council Packets Northland,Bond Counsel Finance Plan Sent to the City December 16 Presentation of Finance Plan City Council Action, Set Sale Resolution Adopted Northland,Bond Counsel December 20 Preliminary Official Statement Sent to City for Sign Off Northland,City and to Rating Agency Week of Rating Call Northland,City,Rating Agency January 6th January 14 Rating Received Northland,City,Rating Agency January 21 Certificate Sale-10:30 AM City Council Action, Awarding Resolution Adopted-7:00 PM Northland,Bond Counsel February 19 Closing on the Certificates (Proceeds Available) Northland,City,Bond Counsel Northland Securities,Inc. Page 7 Attachment 4 - Risk Factors Property Taxes:Property tax levies shown in this Finance Plan are based on projected debt service and other revenues.Final levies will be set based on the results of sale.Levies should be reviewed annually and adjusted as needed. The debt service levy must be included in the preliminary levy for annual Truth in Taxation hearings. Future Legislative changes in the property tax system, including the imposition of levy limits and changes in calculation of property values,would affect plans for payment of debt service.Delinquent payment of property taxes would reduce revenues available to pay debt service. General: In addition to the risks described above, there are certain general risks associated with the issuance of bonds.These risks include,but are not limited to: • Failure to comply with covenants in bond resolution. • Failure to comply with Undertaking for continuing disclosure. • Failure to comply with IRS regulations, including regulations related to use of the proceeds and arbitrage/rebate. The IRS regulations govern the ability of the City to issue its bonds as tax-exempt securities and failure to comply with the IRS regulations may lead to loss of tax- exemption. Northland Securities,Inc. Page 8 CERTIFICATION OF MINUTES RELATING TO GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF INDEBTEDNESS, SERIES 2020A Issuer: City of Farmington, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting held on December 16, 2019, at 7:00 p.m. at the municipal offices in Farmington, Minnesota. Members present: Larson, Bernhj elm, Craig, Donnelly, Hoyt Members absent: None Documents Attached: Minutes of said meeting (pages): RESOLUTION NO. R48-19 RESOLUTION AUTHORIZING ISSUANCE AND SALE OF GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF INDEBTEDNESS, SERIES 2020A I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the certificates 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 certificates; 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 on December // , 2019. City Administrator Councilmember Hoyt introduced the following resolution and moved its adoption, which motion was seconded by Councilmember Craig • RESOLUTION NO. R4R_19 RESOLUTION AUTHORIZING ISSUANCE AND SALE OF GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF INDEBTEDNESS, SERIES 2020A BE IT RESOLVED by the City Council (this "Council") of the City of Farmington, Minnesota (the "City"), as follows: Section 1. Authorization; Purpose. It is hereby determined to be in the best interests of the City to issue its General Obligation Equipment Certificates of Indebtedness, Series 2020A (the "Certificates"), as authorized pursuant to Minnesota Statutes, Chapters 475 and Section 412.301, for the purpose of financing various items of capital equipment, including a ladder truck, and funding costs of issuance of the Certificates. Section 2. Notice of Sale. Northland Securities, Inc., municipal advisor to the City, has presented to this Council a form of Notice of Sale for the Certificates which is attached hereto and hereby approved and which shall be placed on file by the City Administrator. Each and all of the provisions of the Notice of Sale are hereby adopted as the terms and conditions of the Certificates and of the sale thereof, subject to adjustment for issue price compliance terms that may be required prior to the date of sale. Northland Securities, Inc., as independent municipal advisor, pursuant to Minnesota Statutes, Section 475.60, Subdivision 2, paragraph (9), is hereby authorized to solicit bids for the Certificates on behalf of the City on a competitive basis without requirement of published notice. Section 3. Adjustment of Principal Amount of Certificates. The principal amount of the Certificate issue shall be adjusted in accordance with staff recommendations upon receipt of bids for the financed projects, provided that the principal amount is approximately$1,365,000. Section 4. Award and Sale. This Council shall meet at the times and place shown in the attached Notice of Sale for the purpose of considering sealed bids for the purchase of the Certificates and of taking such action thereon as may be in the best interest of the City. Upon vote being taken thereon, the following members voted in favor thereof: Larson, Bernhjelm, Craig, Donnelly, Hoyt and the following members voted against the same: None whereupon the resolution was declared duly passed and adopted. NOTICE OF SALE $1,365,000* GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF INDEBTEDNESS, SERIES 2020A CITY OF FARMINGTON,MINNESOTA (Book-Entry Only) NOTICE IS HEREBY GIVEN that these Certificates will be offered for sale according to the following terms: TIME AND PLACE: Proposals (also referred to herein as "bids") will be opened by the City's Finance Director, or designee, on Tuesday, January 21, 2020, at 10:30 A.M., CT, at the offices of Northland Securities, Inc. (the City's "Municipal Advisor"), 150 South 5th Street, Suite 3300, Minneapolis, Minnesota 55402. Consideration of the Proposals for award of the sale will be by the City Council at its meeting at the City Offices beginning Tuesday,January 21,2020,at 7:00 P.M., CT. SUBMISSION OF PROPOSALS Proposals may be: a) submitted to the office of Northland Securities, Inc., b) faxed to Northland Securities,Inc. at 612-851-5918, c) for proposals submitted prior to the sale,the final price and coupon rates may be submitted to Northland Securities,Inc. by telephone at 612-851-5900 or 612-851-5915, or d) submitted electronically. Notice is hereby given that electronic proposals will be received via PARITYTM, or its successor, in the manner described below, until 10:30 A.M., CT, on Tuesday, January 21, 2020. Proposals may be submitted electronically via PARITYTM or its successor,pursuant to this Notice until 10:30 A.M.,CT,but no Proposal will be received after the time for receiving Proposals specified above. To the extent any instructions or directions set forth in PARITYT , or its successor, conflict with this Notice, the terms of this Notice shall control. For further information about PARITYT , or its successor, potential bidders may contact Northland Securities, Inc. or i-Deal® at 1359 Broadway, 2nd floor, New York,NY 10018,telephone 212-849-5021. Neither the City nor Northland Securities, Inc. assumes any liability if there is a malfunction of PARITYTM or its successor. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Certificates regardless of the manner in which the Proposal is submitted. BOOK-ENTRY SYSTEM The Certificates will be issued by means of a book-entry system with no physical distribution of bond certificates made to the public. The Certificates will be issued in fully registered form and one bond certificate, representing the aggregate principal amount of the Certificates maturing in each year, will be registered in the name of Cede & Co. as nominee of Depository Trust Company ("DTC"),New York, New York, which will act as securities depository of the Certificates. * The City reserves the right to increase or decrease the principal amount of the Certificates.Any such increase or decrease will be made in multiples of$5,000 and may be made in any maturity.If any maturity is adjusted,the purchase price will also be adjusted to maintain the same gross spread. Individual purchases of the Certificates may be made in the principal amount of$5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the City through U.S. Bank, National Association, St. Paul, Minnesota(the "Paying Agent/Registrar"), to DTC, or its nominee as registered owner of the Certificates. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The successful bidder, as a condition of delivery of the Certificates, will be required to deposit the bond certificates with DTC. The City will pay reasonable and customary charges for the services of the Paying Agent/Registrar. DATE OF ORIGINAL ISSUE OF CERTIFICATES Date of Delivery(Estimated to be February 19,2020) AUTHORITY/PURPOSE/SECURITY The Certificates are being issued pursuant to Minnesota Statutes, Chapter 475 and Section 412.301. Proceeds will be used to purchase equipment. The Certificates are payable from ad valorem taxes on all taxable property within the City. The full faith and credit of the City is pledged to their payment and the City has validly obligated itself to levy ad valorem taxes in the event of any deficiency in the debt service account established for this issue. INTEREST PAYMENTS Interest is due semiannually on each February 1 and August 1, commencing February 1, 2021, to registered owners of the Certificates appearing of record in the Bond Register as of the close of business on the fifteenth day(whether or not a business day)of the calendar month preceding such interest payment date. MATURITIES Principal is due annually on February 1, inclusive, in each of the years and amounts as follows: Year Amount Year Amount Year Amount 2022 $265,000 2024 $275,000 2026 $280,000 2023 270,000 2025 275,000 Proposals for the Certificates may contain a maturity schedule providing for any combination of serial bonds and term bonds, subject to mandatory redemption, so long as the amount of principal maturing or subject to mandatory redemption in each year conforms to the maturity schedule set forth above. INTEREST RATES All rates must be in integral multiples of 1/20th or 1/8th of 1%. The rate for any maturity may not be more than 1.00% less than the rate for any preceding maturity. All Certificates of the same maturity must bear a single uniform rate from date of issue to maturity. ESTABLISHMENT OF ISSUE PRICE (HOLD-THE-OFFERING-PRICE RULE MAY APPLY—BIDS NOT CANCELLABLE) In order to establish the issue price of the Certificates for federal income tax purposes, the Issuer requires bidders to agree to the following, and by submitting a bid, each bidder agrees to the following. If a bid is submitted by a potential underwriter,the bidder confirms that(i)the underwriters have offered or reasonably expect to offer the Certificates to the public on or before the date of the award at the offering price(the"initial offering price") for each maturity as set forth in the bid and (ii) the bidder, if it is the winning bidder, shall require any agreement among underwriters, selling group agreement, retail distribution agreement or other agreement relating to the initial sale of the Certificates to the public to which it is a party to include provisions requiring compliance by all parties to such agreements with the provisions contained herein. For purposes hereof, Certificates with a separate CUSIP number constitute a separate "maturity," and the public does not include underwriters of the Certificates (including members of a selling group or retail distribution group)or persons related to underwriters of the Certificates. If, however, a bid is submitted for the bidder's own account in a capacity other than as an underwriter of the Certificates, and the bidder has no current intention to sell, reoffer, or otherwise dispose of the Certificates, the bidder shall notify the Issuer to that effect at the time it submits its bid and shall provide a certificate to that effect in place of the certificate otherwise required below. If the winning bidder intends to act as an underwriter, the Issuer shall advise the winning bidder at or prior to the time of award whether (i) the competitive sale rule or (ii) the "hold-the-offering price" rule applies, as described in the following paragraph. If the Issuer advises the winning bidder that the requirements for a competitive sale have not been satisfied and that the hold-the-offering price rule applies, the winning bidder shall (1) upon the request of the Issuer confirm that the underwriters did not offer or sell any maturity of the Certificates to any person at a price higher than the initial offering price of that maturity during the period starting on the award date and ending on the earlier of(a)the close of the fifth business day after the sale date or(b)the date on which the underwriters have sold at least 10% of that maturity to the public at or below the initial offering price; and (2) at or prior to closing, deliver to the Issuer a certification substantially in the form attached hereto as Exhibit A,together with a copy of the pricing wire. If the Issuer advises the winning bidder that the requirements for a competitive sale have been satisfied and that the competitive sale rule applies, the winning bidder will be required to deliver to the Issuer at or prior to closing a certification, substantially in the form attached hereto as Exhibit B, as to the reasonably expected initial offering price as of the award date. Any action to be taken or documentation to be received by the Issuer pursuant hereto may be taken or received on behalf of the Issuer by the Municipal Advisor. Bidders should prepare their bids on the assumption that the Certificates will be subject to the "hold-the- offering-price" rule. Any bid submitted pursuant to the Notice of Sale shall be considered a firm offer for the purchase of the Certificates,and bids submitted will not be subject to cancellation or withdrawal. ADJUSTMENTS TO PRINCIPAL AMOUNT AFTER PROPOSALS The City reserves the right to increase or decrease the principal amount of the Certificates. Any such increase or decrease will be made in multiples of $5,000 and may be made in any maturity. If any maturity is adjusted, the purchase price will also be adjusted to maintain the same gross spread. Such adjustments shall be made promptly after the sale and prior to the award of Proposals by the City and shall be at the sole discretion of the City. The successful bidder may not withdraw or modify its Proposal once submitted to the City for any reason, including post-sale adjustment.Any adjustment shall be conclusive and shall be binding upon the successful bidder. OPTIONAL REDEMPTION The Certificates will not be subject to prepayment or optional redemption before maturity. CUSIP NUMBERS If the Certificates qualify for assignment of CUSIP numbers such numbers will be printed on the Certificates, but neither the failure to print such numbers on any Bond nor any error with respect thereto shall constitute cause for a failure or refusal by the successful bidder thereof to accept delivery of and pay for the Certificates in accordance with terms of the purchase contract. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the successful bidder. DELIVERY Delivery of the Certificates will be within thirty days after award, subject to an approving legal opinion by Dorsey & Whitney LLP, Bond Counsel. The legal opinion will be paid by the City and delivery will be anywhere in the continental United States without cost to the successful bidder at DTC. TYPE OF PROPOSAL Proposals of not less than $1,355,445 (99.3%) and accrued interest on the principal sum of$1,365,000 must be filed with the undersigned prior to the time of sale. Proposals must be unconditional except as to legality. Proposals for the Certificates should be delivered to Northland Securities,Inc. and addressed to: Teah Malecha,Finance Director 430 Third Street Farmington,Minnesota 55024 A good faith deposit (the "Deposit") in the amount of$27,300 in the form of a federal wire transfer (payable to the order of the City) is only required from the apparent winning bidder, and must be received within two hours after the time stated for the receipt of Proposals. The apparent winning bidder will receive notification of the wire instructions from the Municipal Advisor promptly after the sale. If the Deposit is not received from the apparent winning bidder in the time allotted, the City may choose to reject their Proposal and then proceed to offer the Certificates to the next lowest bidder based on the terms of their original proposal, so long as said bidder wires funds for the Deposit amount within two hours of said offer. The City will retain the Deposit of the successful bidder,the amount of which will be deducted at settlement and no interest will accrue to the successful bidder. In the event the successful bidder fails to comply with the accepted Proposal, said amount will be retained by the City.No Proposal can be withdrawn after the time set for receiving Proposals unless the meeting of the City scheduled for award of the Certificates is adjourned,recessed, or continued to another date without award of the Certificates having been made. AWARD The Certificates will be awarded on the basis of the lowest interest rate to be determined on a true interest cost(TIC) basis. The City's computation of the interest rate of each Proposal, in accordance with customary practice,will be controlling. In the event of a tie,the sale of the Certificates will be awarded by lot. The City will reserve the right to: (i) waive non-substantive informalities of any Proposal or of matters relating to the receipt of Proposals and award of the Certificates, (ii)reject all Proposals without cause, and(iii)reject any Proposal which the City determines to have failed to comply with the terms herein. INFORMATION FROM SUCCESSFUL BIDDER The successful bidder will be required to provide, in a timely manner,certain information relating to the initial offering price of the Certificates necessary to compute the yield on the Certificates pursuant to the provisions of the Internal Revenue Code of 1986,as amended. OFFICIAL STATEMENT By awarding the Certificates to any underwriter or underwriting syndicate submitting a Proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide to the senior managing underwriter of the syndicate to which the Certificates are awarded,the Final Official Statement in an electronic format as prescribed by the Municipal Securities Rulemaking Board(MSRB). FULL CONTINUING DISCLOSURE UNDERTAKING The City will covenant in the resolution awarding the sale of the Certificates to provide, or cause to be provided, annual financial information, including audited financial statements of the City, and notices of certain material events, as required by SEC Rule 15c2-12. BANK QUALIFICATION The City will designate the Certificates as qualified tax-exempt obligations for purposes of Section 265(b)(3)of the Internal Revenue Code of 1986, as amended. BOND INSURANCE AT UNDERWRITER'S OPTION If the Certificates qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the successful bidder,the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the successful bidder of the Certificates. Any increase in the costs of issuance of the Certificates resulting from such purchase of insurance shall be paid by the successful bidder, except that, if the City has requested and received a rating on the Certificates from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the successful bidder. Failure of the municipal bond insurer to issue the policy after the Certificates have been awarded to the successful bidder shall not constitute cause for failure or refusal by the successful bidder to accept delivery on the Certificates. The City reserves the right to reject any and all Proposals,to waive informalities and to adjourn the sale. Dated:December 16,2019 BY ORDER OF THE FARMINGTON CITY COUNCIL /s/Teah Malecha Finance Director Additional information may be obtained from: Northland Securities, Inc. 150 South 5th Street, Suite 3300 Minneapolis,Minnesota 55402 Telephone No.: 612-851-5900 EXHIBIT A [ISSUE PRICE CERTIFICATE—HOLD-THE-OFFERING-PRICE RULE APPLIES] $[PRINCIPAL AMOUNT] [BOND CAPTION] The undersigned, on behalf of[NAME OF UNDERWRITER/REPRESENTATIVE] (["[SHORT NAME OF UNDERWRITER]")][the "Representative")][, on behalf of itself and [NAMES OF OTHER UNDERWRITERS] (together, the "Underwriting Group"),] hereby certifies as set forth below with respect to the sale of the obligations named above(the"Bonds"). 1. Initial Offering Price of the Bonds. [SHORT NAME OF UNDERWRITER][The Underwriting Group] offered the Bonds to the Public for purchase at the specified initial offering prices listed in Schedule A (the "Initial Offering Prices") on or before the Sale Date. A copy of the pricing wire for the Bonds is attached to this certificate as Schedule B. 2. Hold the Offering Price Rule. [SHORT NAME OF UNDERWRITER][Each member of the Underwriting Group] has agreed in writing that, (i) for each Maturity, it would neither offer nor sell any of the Bonds of such Maturity to any person at a price that is higher than the Initial Offering Price for such Maturity during the Holding Period for such Maturity (the "Hold-the-Offering-Price Rule"), and (ii) any agreement among underwriters, selling group agreement, or third-party distribution agreement contains the agreement of each underwriter, dealer, or broker-dealer who is a party to such agreement to comply with the Hold-the-Offering-Price Rule. Based on the [Representative][SHORT NAME OF UNDERWRITER]'s own knowledge and, in the case of sales by other Members of the Distribution Group, representations obtained from the other Members of the Distribution Group, no Member of the Distribution Group has offered or sold any such Maturity at a price that is higher than the respective Initial Offering Price during the respective Holding Period. 3. Defined Terms. For purposes of this Issue Price Certificate: (a) Holding Period means the period starting on the Sale Date and ending on the earlier of(i)the close of the fifth business day after the Sale Date ([DATE]), or(ii)the date on which Members of the Distribution Group have sold at least 10%of such Maturity to the Public at one or more prices,none of which is higher than the Initial Offering Price for such Maturity. (b) Issuer means [DESCRIBE ISSUER]. (c) Maturity means Bonds with the same credit and payment terms. Any Bonds with different maturity dates,or with the same maturity date but different stated interest rates, are treated as separate Maturities. (d) Member of the Distribution Group means(i)any person that agrees pursuant to a written contract with the Issuer(or with the lead underwriter to form an underwriting syndicate)to participate in the initial sale of the Bonds to the Public, and(ii)any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). (e) Public means any person (i.e., an individual, trust, estate, partnership, association, company, or corporation) other than a Member of the Distribution Group or a related party to a Member of the Distribution Group. A person is a"related party" to a Member of the Distribution Group if the Member of the Distribution Group and that person are subject,directly or indirectly,to(i)at least 50%common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (ii) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (iii) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other). (f) Sale Date means the first day on which there is a binding contract in writing for the sale of the respective Maturity. The Sale Date of each Maturity was [DATE]. The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents [NAME OF UNDERWRITING FIRM][the Representative's] interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer[ and BORROWER (the "Borrower")] with respect to certain of the representations set forth in the [Tax Certificate][Tax Exemption Agreement] and with respect to compliance with the federal income tax rules affecting the Bonds, and by [BOND COUNSEL] in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038[-G][-GC][-TC], and other federal income tax advice that it may give to the Issuer[ and the Borrower] from time to time relating to the Bonds. [UNDERWRITER][REPRESENTATIVE] By: Name: Dated: [ISSUE DATE] EXHIBIT B [ISSUE PRICE CERTIFICATE—COMPETITIVE SALE SATISFIED] $[PRINCIPAL AMOUNT] [BOND CAPTION] The undersigned, on behalf of [NAME OF UNDERWRITER] ("[SHORT NAME OF UNDERWRITER]"), hereby certifies as set forth below with respect to the sale of the obligations named above(the"Bonds"). 1. Reasonably Expected Initial Offering Price. (a) As of the Sale Date,the reasonably expected initial offering prices of the Bonds to the Public by [SHORT NAME OF UNDERWRITER] are the prices listed in Schedule A (the "Expected Offering Prices"). The Expected Offering Prices are the prices for the Maturities of the Bonds used by [SHORT NAME OF UNDERWRITER] in formulating its bid to purchase the Bonds. Attached as Schedule B is a true and correct copy of the bid provided by[SHORT NAME OF UNDERWRITER] to purchase the Bonds. (b) [SHORT NAME OF UNDERWRITER] was not given the opportunity to review other bids prior to submitting its bid. (c) The bid submitted by [SHORT NAME OF UNDERWRITER] constituted a firm offer to purchase the Bonds. 2. Defined Terms. For purposes of this Issue Price Certificate: (a) Issuer means [DESCRIBE ISSUER]. (b) Maturity means Bonds with the same credit and payment terms. Any Bonds with different maturity dates, or with the same maturity date but different stated interest rates, are treated as separate Maturities. (c) Member of the Distribution Group means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause(i)of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public). (d) Public means any person (i.e., an individual, trust, estate, partnership, association, company, or corporation) other than a Member of the Distribution Group or a related party to a Member of the Distribution Group. A person is a"related party"to a Member of the Distribution Group if the Member of the Distribution Group and that person are subject, directly or indirectly,to(i) at least 50%common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (ii) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (iii) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership(including direct ownership of the applicable stock or interests by one entity of the other). (e) Sale Date means the first day on which there is a binding contract in writing for the sale of the respective Maturity. The Sale Date of each Maturity was [DATE]. The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents [SHORT NAME OF UNDERWRITER]'s interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer[ and BORROWER (the "Borrower")] with respect to certain of the representations set forth in the [Tax Certificate][Tax Exemption Agreement] and with respect to compliance with the federal income tax rules affecting the Bonds, and by [BOND COUNSEL] in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038[-G][-GC][-TC],and other federal income tax advice that it may give to the Issuer[ and the Borrower] from time to time relating to the Bonds. [UNDERWRITER] By: Name: Dated: [ISSUE DATE] CITY OF 0430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Tony Wippler, Planning Manager SUBJECT: 2040 Comprehensive Plan DATE: December 16, 2019 INTRODUCTION The Metropolitan Council reviewed Farmington's 2040 Comprehensive Plan Update at their meeting on December 11, 2019. DISCUSSION At the meeting the Metropolitan Council found that the 2040 Update meets all Metropolitan Land Planning Act requirements, conforms to all regional systems, is consistent with the Thrive MSP 2040, and is compatible with Farmington's surrounding jurisdictions (see attached report). Therefore,the Metropolitan Council has stated that"the City may place its 2040 Comprehensive Plan into effect". Minnesota Statutes require that the City of Farmington adopt the 2040 Update with any required modifications within nine months of the decision on December 11, 2019. The Metropolitan Council did not place any required modifications on the 2040 Update; however,they have provided the following advisory comments: 1. Page 5, Appendix D, in the Comprehensive Sewer Plan erroneously states that approximately 1.6 MGD average flow from Lakeville is conveyed through interceptor 800717, aka "Flagstaff Interceptor." This interceptor was constructed in 2008 to provide regional wastewater service to Lakeville for development within their Farmignton Outlet district. No urbanized development has occured within the Farmington Outlet district, and Lakeville is not currently discharging wastewater to 800717. The Plan needs to be revised accordingly. This comment has been noted and the plan will be revised accordingly. 2. Pages 22-23, Appendix D, in the Comprehensive Sewer Plan describes the long-term system capacity of the local collection system in District 6. It references a future trunk sewer along Biscayne Avenue that would provide additional capacity for development in District 6 as well as capacity for development in Empire Township. The Council has identified a long-term future regional interceptor project that will provide additional capacity for areas south and southwest of Farmington and has identified Biscayne Avenue as one alternative corridor for this future interceptor. The Council would like to be involved in the early stages of the local planning process for the trunk sewer,to identify opportunities to coordinate local and regional investments. This comment has been noted and the City will include the Metropolitan Council in the future planning process for this trunk sewer line. 3. When available,we request that the City provide to the Council the date the City adopted the final LW M P. This comment has been noted and the city will provide the requested date of adoption. BUDGET IMPACT NA ACTION REQUESTED Adopt the attached resolution approving the Final Document of the 2040 Comprehensive Plan Update and Related Plans. ATTACHMENTS: Type Description D Resolution Adoption Resolution D Backup Material Metropolitan Council Memorandum RESOLUTION NO. R49-1 9 ADOPTION OF THE 2040 COMPREHENSIVE PLAN UPDATE AND RELATED PLANS Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota, was held in the Council Chambers of said City on the 16th day of December, 2019 at 7:00 P.M. Members Present: Larson, Bernhj elm, Craig, Donnelly, Hoyt Members Absent: None Member Bernhj elm and Member Donnelly introduced and seconded the following: WHEREAS, Minn. Stat. § 462.355 and § 473.864 require the City to review its comprehensive plan and amend it, if necessary; and WHEREAS, the City of Farmington has prepared a 2040 Comprehensive Plan Update and related plans in accordance with the Metropolitan Land Planning Act; and WHEREAS, the related plans include the Comprehensive Sanitary Sewer Plan, Water Supply and Distribution Plan and the Surface Water Management Plan; WHEREAS; numerous public hearings, workshops, and meetings, were held to provide for public input on development issues, goals and policies related to the 2040 Comprehensive Plan Update process, and WHEREAS, the Planning Commission and City Council previously recommended submittal of the proposed 2040 Comprehensive Plan Update along with the related plans to the Metropolitan Council; WHEREAS, the 2040 Comprehensive Plan Update and related plans was submitted to adjacent governmental units, special affected districts lying in whole or in part within the City, and affected school districts for review and comment in accordance with Minn. Stat. §473.858; and WHEREAS, the Metropolitan Council on December 11, 2019, reviewed the 2040 Comprehensive Plan Update and related plans and determined that the City could put the 2040 Comprehensive Plan Update and related plans into effect. NOW, THEREFORE, BE IT RESOLVED that the City Council of Farmington hereby adopts the 2040 Comprehensive Plan Update and related plans for the City of Farmington. This resolution adopted by recorded vote of the Farmington City Council in open session on the 16th day of December, 2019. Todd Larson, Mayor Attest to the /et 46day of December, 2019 ICItiP'-' • McKnight, City Administrator SEAL Committee Report Business Item No. 2019-322 JT Environment Development Committee Meeting date: November 12, 2019 Community Development Committee Meeting date: November 18, 2019 For the Metropolitan Council meeting of December 11, 2019 Subject: City of Farmington 2040 Comprehensive Plan and Comprehensive Sewer Plan, Review File 22086-1 Proposed Action That the Metropolitan Council adopt the attached Advisory Comments and Review Record and take the following actions: Recommendations of the Community Development Committee 1. Authorize the City of Farmington to place its 2040 Comprehensive Plan into effect. 2. Advise the City to implement the advisory comments in the Review Record for surface water management. Recommendation of the Environment Committee 1. Approve the City of Farmington's Comprehensive Sewer Plan. 2. Implement the advisory comments in the Review Record for wastewater. Environment Committee Summary of Committee Discussion/Questions No comments or questions. The proposed action was approved on consent agenda at the Environment Committee's Tuesday, November 12, 2019 meeting. Community Development Committee Summary of Committee Discussion/Questions Planning Analyst Patrick Boylan presented the staffs report to the Committee. Mr. Tony Wippler, Planning Manager from the City of Farmington was in attendance. The Community Development Committee unanimously recommended approval of the proposed action with no questions or discussion at its meeting on November 18, 2019. Page-1 METROPOLITAN Joint Business Item No. 2019-322 JT Community Development Committee Meeting date: November 12, 2019 Environment Committee Meeting date: November 18, 2019 For the Metropolitan Council meeting of December 11, 2019 Subject: City of Farmington 2040 Comprehensive Plan and Comprehensive Sewer Plan, Review File 22086-1 District(s), Member(s): District 16, Wendy Wulff Policy/Legal Reference: Metropolitan Land Planning Act(Minn. Stat. §473.175), Minn. Stat. § 473.513 Staff Prepared/Presented: Patrick Boylan, Planning Analyst (651-602-1438) Angela R. Torres, Local Planning Assistance Manager (651-602-1566) Kyle Colvin, Engineering Programs, Manager(651-602-1151) Division/Department: Community Development/ Regional Planning Environmental Services/Technical Services Proposed Action That the Metropolitan Council adopt the attached Advisory Comments and Review Record and take the following actions: Recommendations of the Community Development Committee 1. Authorize the City of Farmington to place its 2040 Comprehensive Plan into effect. 2. Advise the City to implement the advisory comments in the Review Record for surface water management. Recommendation of the Environment Committee 1. Approve the City of Farmington's Comprehensive Sewer Plan. 2. Implement the advisory comments in the Review Record for wastewater. Page-2 I METROPOLITAN COUNCIL Advisory Comments The following Advisory Comments are part of the Council action authorizing the City of Farmington to implement its 2040 Comprehensive Plan (Plan). Community Development Committee 1. As stated in the Local Planning Handbook, the City must take the following steps: a. Adopt the Plan in final form after considering the Council's review recommendations as contained in the body of this report. b. Submit one hard copy and one electronic copy of the Plan to the Council. The electronic copy must be submitted as one unified file. c. Submit to the Council a copy of the City Council resolution evidencing final adoption of the Plan. 2. The Local Planning Handbook also states that local governments must formally adopt their comprehensive plans within nine months after the Council's final action. If the Council has recommended changes to the Plan, local governments should incorporate those recommended changes into the Plan or respond to the Council before"final adoption" of the comprehensive plan by the governing body of the local governmental unit. (Minn. Stat. §473.858, subd. 3) 3. Local governments must adopt official controls as identified in their 2040 comprehensive plans and must submit copies of the official controls to the Council within 30 days after the official controls are adopted. (Minn. Stat. §473.865, subd. 1) 4. Local governmental units cannot adopt any official controls or fiscal devices that conflict with their comprehensive plans or which permit activities in conflict with the Council's metropolitan system plans(Minn. Stat. §§473.864, subd. 2; 473.865, subd. 2). If official controls conflict with comprehensive plans, the official controls must be amended within 9 months following amendments to comprehensive plans (Minn. Stat. §473.865, subd. 3). Environment Committee 1. The Council-approved Comprehensive Sewer Plan becomes effective only after the Plan receives final approval from the local governmental unit's governing body. After the Plan receives final approval from the City and the Comprehensive Sewer Plan becomes effective, the City may implement its Plan to alter, expand, or improve its sewage disposal system consistent with the Council-approved Comprehensive Sewer Plan. 2. A copy of the City Council resolution adopting its 2040 comprehensive plan, including its Comprehensive Sewer Plan, must be submitted to the Council. Page-3 I METROPOLITAN COUNCIL Background The City of Farmington is located in west-central Dakota County. It is surrounded by the communities of Lakeville, Empire Township, Castle Rock Township, and Eureka Township. The City submitted its 2040 Comprehensive Plan (Plan)to the Council for review to meet the Metropolitan Land Planning Act requirements (Minn. Stat. §§473.851 to 473.871) and the Council's 2015 System Statement requirements. Review Authority & Rationale Minn. Stat. §473.175 directs the Metropolitan Council to review a local government's comprehensive plan and provide a written statement to the local government regarding the Plan's: • Conformance with metropolitan system plans • Consistency with the adopted plans and policies of the Council • Compatibility with the plans of adjacent governmental units and plans of affected special districts and school districts By resolution, the Council may require a local government to modify its comprehensive plan if the Council determines that"the plan is more likely than not to have a substantial impact on or contain a substantial departure from metropolitan system plans" (Minn. Stat. §473.175, subd. 1). Each local government unit shall adopt a policy plan for the collection, treatment, and disposal of sewage for which the local government unit is responsible, coordinated with the Metropolitan Council's plan, and may revise the same as often as it deems necessary (Minn. Stat. §473.513). The attached Review Record details the Council's assessment of the Plan's conformance, consistency, and compatibility, and is summarized below. Review Standard Review Area Plan Status Conformance Regional system plan for Parks Conforms Conformance Regional system plan for Transportation, Conforms including Aviation Conformance Water Resources (Wastewater Services Conforms and Surface Water Management) Consistency with Council Policy Thrive MSP 2040 and Land Use Consistent Consistency with Council Policy Forecasts Consistent Consistency with Council Policy 2040 Housing Policy Plan Consistent Consistency with Council Policy Water Supply Consistent Consistency with Council Policy Community and Subsurface Sewage Consistent Treatment Systems (SSTS) Compatibility Compatible with the plans of adjacent and Compatible affected governmental districts Thrive Lens Analysis The proposed 2040 comprehensive plan is reviewed against the land use policies in Thrive MSP 2040. To achieve the outcomes identified in Thrive, the metropolitan development guide defines the Land Use Policy for the region and includes strategies for local governments and the Council to implement. These policies and strategies are interrelated and, taken together, serve to achieve the outcomes identified in Thrive. Funding The Metropolitan Council awarded the City a Planning Assistance Grant of$32,000 to complete its 2040 comprehensive plan. The first half of this grant was paid to initiate the local planning process. The Page-4 I METROPOLITAN COUNCIL second half of the grant will be paid after Council authorization of the City's plan, local adoption, and the City's submittal of final reporting requirements. Known Support/ Opposition There is no known local opposition to the 2040 comprehensive plan. Page-5 I METROPOLITAN COUNCIL REVIEW RECORD City of Farmington 2040 Comprehensive Plan Review File No. 22086-1, Business Item No. 2019-332-JT The following Review Record documents how the proposed Plan meets the requirements of the Metropolitan Land Planning Act and conforms to regional system plans, is consistent with regional policies, and is compatible with the plans of adjacent and affected jurisdictions. Conformance with Regional Systems The Council reviews plans to determine conformance with metropolitan system plans. The Council has reviewed the City's Plan and finds that it conforms to the Council's regional system plans for Regional Parks, Transportation (including Aviation), and Water Resources. Regional Parks and Trails Reviewer: Colin Kelly, Community Development(CD) - Regional Parks (651-602-1361) The Plan conforms to the 2040 Regional Parks Policy Plan for the Regional Parks System element. Dakota County is the Park implementing agency for the Regional Parks System components in the City of Farmington, for which the Plan accurately describes the Regional Parks System components. Regional Trails located within the City include the North Creek Greenway and Lake Marion Greenway regional trails, and the Chub Creek Greenway Regional Trail Search Corridor. There are no State or Federal recreation lands within the City (see Figure 1). Regional Transportation, Transit, and Aviation Reviewer: Russ Owen, Metropolitan Transportation Services (MTS) (651-602-1724) The Plan conforms to the 2040 Transportation Policy Plan (TPP). It accurately reflects transportation system components of the TPP and is consistent with Council policies regarding community roles, the needs of non-automobile transportation, access to job concentrations, and the needs of freight. Roadways The Plan conforms to the highway system element of the TPP. There are no metropolitan highways (Principal Arterials)within the City's boundaries.TH 3 and TH 50 are A-minor Connectors and CSAH 31, 64, and 74 are A-minor Expanders. CSAH 66 and 50 are"Other" minor arterials. Several city streets are identified as major and minor collectors, and if CSAH 50 is"turned back"to the City from Scott County, the Plan states it is also likely to become a major collector. The Plan acknowledges that any future functional classification changes shown on Figure 5.7 of the Plan must be submitted to, and approved by, the Transportation Advisory Board (TAB) before they will be included on the regional functional classification map. The Plan identifies all the required characteristics of the City's roadways. The Plan has a section analyzing roadway safety, maps of roadway jurisdiction and number of lanes, and includes existing and forecasted traffic volumes for principal and A-minor arterials. Traffic forecasts on Figure 5.11 reflect 2040 model projections produced by the Council's model. Comparisons of forecasts against existing road capacity indicates a need for additional lanes on TH 3 north of Main Street(currently a two-lane road)which MnDOT has also identified as a future need. However, the Plan acknowledges that funding to widen this road is not available in the foreseeable future. CSAH 31 (Pilot Knob Road) will also be approaching capacity by 2040 and the City is working with Scott County to address the timing of improvements. The Plan also summarizes several studies that have been done over the past 20 years to identify roadway improvements that will be needed for safety or future growth of the City and other nearby areas such as the U More Page-0 METROPOLITAN site in Rosemount. It notes that Dakota County has studied the need for future east-west arterials in 2003 and 2006, which identified several future alignments in the City, and the County did a principal arterial study in 2018 which identified TH 3 and Alignment E from the earlier study as"Recommended Future Principal Arterials." The Plan also identifies several areas for study and coordination with neighboring communities in the future. The Union Pacific railroad parallel to TH 3 and the Vermillion river do pose limitations for new roadway crossing points. The Plan includes discussion of MnDOT and Dakota County guidelines to manage access along their roads, and notes that the City is currently reviewing its guidelines for local streets. Transit Farmington is not within the Transit Capital Levy District. The Plan shows the City is in Market Area IV and has no fixed route transit but is served by Transit Link dial-a-ride service. The Plan also notes that MVTA commuter Route 477 service is available at the Lakeville Park and Ride at CSAH 23 and 181st Street, and the Red Line BRT can be accessed three miles north of the city at the Apple Valley Transit station. Aviation The Plan conforms to the aviation system element of the TPP. There is no existing or planned airport within Farmington, but the City is within the influence area of AirLake airport, located in Lakeville and Eureka Township, although not within the runway flight path. The Farmington VOR (a radio beacon owned and operated by the FAA) is in the SW corner of the City. Both facilities are indicated on Figure 5.15 of the Plan. The City's code addresses electronic and airspace obstructions and the need to notify FTA about any structures taller than 200 feet. Bicycling and Walking The Plan is consistent with the Bicycling and Pedestrian chapter of the TPP. There is discussion of both walking and biking. Sidewalk locations are identified in the text and Figure 5.14 of the Plan shows multi use trails, including the Regional Bicycle Transportation Network (RBTN) corridor locations. The three Tier 2 RBTN corridors in the City are also described in the Plan text. Barriers to bike and pedestrian movement are also identified and the City anticipated beginning a more detailed Bicycle and Pedestrian Master Plan in 2018. Freight The Plan is consistent with freight policies of the TPP. The Union Pacific railroad, which traverses the City parallel to TH 3, carries about 11 trains per day. There are three at-grade crossings of the railroad and one grade separated crossing at CSAH 64. There are no heavy truck generators, such as distribution centers or manufacturing sites so freight movement is not a major factor in the City. Heavy commercial vehicle traffic counts are depicted on Figure 5.1 of the Plan. Transportation Analysis Zones (TAZs) The Plan conforms to the TPP regarding TAZ allocations. The City's TAZ allocations for employment, households, and population appropriately sum to the Council's city-wide forecast totals for all forecast years. Water Resources Wastewater Service Reviewer:Kyle Colvin, Environmental Services(ES)—Engineering Programs(651-602-1151) The Plan conforms to the 2040 Water Resources Policy Plan (WRPP). It represents the City's guide for future growth and development through the year 2040. It includes growth forecasts that are consistent with the Council's forecasts for population, households, and employment. Page-1 I METROPOLITAN COUNCIL Current wastewater treatment services are provided to the City by Metropolitan Council Environmental Services. All wastewater generated within the City is conveyed through Council Interceptors; 7103, 7409, and 800717. All flow is treated at the Council's Empire Wastewater Treatment Plant in Empire Township. The Plan projects that the City will have 11,740 sewered households and 6,800 sewered employees by 2040. The Metropolitan Disposal System with its scheduled improvements has or will have adequate capacity to serve the City's growth forecasts. The Plan provides sanitary flow projections in 5-year increments. The rationale for the projections is given in the Plan and determined appropriate for planning local services. The Metropolitan Council is committing to provide the level of wastewater service based on the sewered forecasts as stated in the sewer element of the Plan. The Land Use Plan reflects an overall minimum residential sewered density that is consistent with Council policy for future sewered residential growth for Emerging Suburban Edge communities. The Plan defines the City's goals, policies, and strategies for preventing and reducing excessive inflow and infiltration (I/I) in the local municipal (city) and private sanitary sewer systems. The Plan includes a summary of activities and programs intended to mitigate I/I in both the public and private property systems including activities related to sanitary sewer pipe lining, manhole structure repair and replacement, pipe replacement, flow monitoring, and a future sump pump and foundation drain inspection and disconnection program. The Plan describes the requirements and standards for minimizing I/I and references City Ordinance (Section 8-2-8)that prohibits the discharge of any clean water sources into the sanitary sewer system from roof drains, sump pumps, footing drain tiles, or swimming pools. The Ordinance also requires the disconnection of such discharges if discovered. The Plan describes the sources, extent, and significance of existing I/I within the entire wastewater collection system and provides a description of an implementation plan for preventing and eliminating excessive I/I from entering both the municipal and private property sewer systems. The Plan states that approximately 34% of the residential homes were constructed prior to 1970 when private service laterals were predominately vitrified clay tile pipe. By comparing recent 5-year wastewater flow generation volumes between winter and summer months, and against winter quarter water use data, the City has determined that between 9% and 22% of the City's average annual wastewater volume is from I/I, and peak monthly flow is nearly 30% 1/1. Sewer Element Comments The Sewer Element of the Plan has been reviewed against the requirements for Comprehensive Sewer Plans for Emerging Suburban Edge communities. It was found to be complete and consistent with Council polices. Upon adoption of the Plan by the City, the action of the Council to approve the Sewer Plan becomes effective. At that time, the City may implement its Plan to alter, expand, or improve its sewage disposal system consistent with the approved Sewer Plan. A copy of the City Council Resolution adopting its Plan needs to be submitted to the Council for its records. Advisory Comments 1. Page 5, Appendix D, in the Comprehensive Sewer Plan erroneously states that approximately 1.6 MGD average flow from Lakeville is conveyed through interceptor 800717, aka "Flagstaff Interceptor."This interceptor was constructed in 2008 to provide regional wastewater service to Lakeville for development within their Farmington Outlet District. No urbanized development has occurred within the Farmington Outlet district, and Lakeville is not currently discharging wastewater to 800717. The Plan needs to be revised accordingly. 2. Pages 22-23, Appendix D, in the Comprehensive Sewer Plan describes the long-term system capacity of the local collection system in District 6. It references a future trunk sewer along Biscayne Avenue that would provide additional capacity for development in District 6 as well as Page-2 I METROPOLITAN COUNCIL capacity for development in Empire Township. The Council has identified a long-term future regional interceptor project that will provide additional capacity for areas south and southwest of Farmington and has identified Biscayne Avenue as one alternative corridor for this future interceptor. The Council would like to be involved in the early stages of the local planning process for the trunk sewer, to identify opportunities to coordinate local and regional investments. Surface Water Management Reviewer:Jim Larsen, CD—Local Planning Assistance (651-602-1159) The Plan is consistent with Council policy requirements and in conformance with the Council's WRPP for local surface water management. The Plan satisfies the requirements for 2040 comprehensive plans. Farmington lies within the oversight boundaries of the Vermillion River Watershed Joint Powers Organization (Watershed). The City submitted a draft Local Water Management Plan (LWMP) update in August 2018. Council Water Resources staff reviewed and commented on the draft LWMP to the City in a letter dated September 21, 2018. The Watershed approved the LWMP on December 4, 2018. The Plan incorporates the final LWMP as Appendix G. Advisory Comments When available, we request that the City provide to the Council the date the City adopted the final LWMP. Consistency with Council Policies The Council reviews plans to evaluate their apparent consistency with the adopted plans of the Council. Council staff have reviewed the City's Plan and find that it is consistent with the Council's policies, as detailed below. Forecasts Reviewer:Paul Hanson, CD—Research (651-602-1642) The Plan includes the Council forecasts for the City (Table 1.1 on page 1-4) shown in Table 1 below. Table 1. City of Farmington Forecasts Census Estimated Council Forecasts 2010 2017 2020 2030 2040 Po. . '• 18. • s0 : 1S 00 Households 7,066 7,779 8,500 10,100 11,800 Em•to ment 4,438 4,973 5,600 6,200 6,800 All forecasts tables throughout the Plan are consistent with the overall City forecast totals and the Plan guides enough land to accommodate future household growth. The Plan does revise the sewer-serviced forecast. Sewer-serviced households and population are revised upward by 500-600 households in each year. Numbers of unsewered households and population are reduced by the same amounts. The revised sewer-serviced forecast is shown in Table 2 below. Table 2. Metropolitan Council Forecast: Farmington Sewer-Serviced (Empire Plant) Council Forecasts 2010 2020 2030 2040 Po• . '. 1 • III I. : I 35 Households 6,420 8,414 10,016 11,738 Em•lo ment 4,438 5,600 6,200 6,800 Page-3 I METROPOLITAN COUNCIL The Council will approve the sewer-serviced forecast simultaneous with action on the Plan. Thrive MSP 2040 and Land Use Reviewer. Patrick Boylan, CD—Local Planning Assistance (651-602-1438) The Plan is consistent with Thrive MSP 2040 and its land use policies. The Plan acknowledges the Thrive community designation of Emerging Suburban Edge (Figure 2). Thrive describes Emerging Suburban Edge communities as places that are in stages of transitioning into urbanized levels of development. The existing land uses in Farmington are predominately agricultural (46%) residential (21%), most of the existing commercial/office and industrial areas (3.4%) are near transportation corridors. Approximately 10.4% of the City is parks/open space (Figure 3). Emerging Suburban Edge communities are expected to plan for forecasted population and household growth at average densities of at least 3-5 units per acre for new development and redevelopment. Furthermore, communities designated as Emerging Suburban Edge are expected to target higher- intensity developments in areas with better access to regional sewer and transportation infrastructure, connections to local commercial activity centers, transit facilities, and recreational amenities. The Plan is consistent with Thrive for land use and residential density policies for an Emerging Suburban Edge community designation. Table 3 below shows that between 2020 and 2040, the City expects over 1,261 acres to develop at a residential density range between 3.3 and 8.7 units per acre, consistent with the required minimum average density of 3 units per acre. The City plans to support their forecasted growth through a variety of residential land use categories, with many of the higher density land use categories located along transportation corridors, such as Highway 50 in the southwest and Highway 65 in the northeast. While a large portion of the City is guided for Low Density Residential, as shown in Figure 5, these are large tracts of land are not expected to develop until post- 2040. Only land expected to develop prior to 2040 is shown in Table 3 below. Table 3. Planned Residential Density, City of Farmington 2020-2040 Change Density Cate+Q Min :Max Net cres in Low Density Residential 1 3.5 587.49 587 2056 Low/Medium Density Residential 3.5 6 289.35 1013 1736 Medium Density Residential 6 12 292.82 1757 3515 High Density Residential 12 40 51.03 612 2041 Mixed Use* 6 40 40.68 244 1627 TOTALS 1,261.37 4,214, 10,975 *50% residential Overall Dens i The Plan also identifies and protects an adequate supply of land to support growth for future development beyond 2040, as illustrated in Figure 5. Agricultural Preserves The Plan appropriately describes and lists lands enrolled in the Metropolitan Agricultural Preserves Program for all qualifying agricultural property located in the City, consistent with state statute. The Plan includes a table identifying the parcel expiration date from the program, property owner, and the size of property currently in the program. The Plan also includes a map showing enrollment as of 2019. Page-4 I METROPOLITAN COUNCIL Orderly Annexation The Plan includes a policy about Orderly Annexation Agreements (OAAs) between Farmington and Empire Township, and between Farmington and Castle Rock Township. The OAAs provide detail on how future land will come into the City and what anticipated land uses are planned. Housing Reviewer:Hilary Lovelace, CD—Housing (651-602-1555) The Plan is consistent with the 2040 Housing Policy Plan. As of 2016, the City has more than 7,970 homes including about 1,100 multifamily units and nearly 7,000 single-family homes. Approximately 1,000 homes are rented. More than 7,900 housing units are currently affordable to households earning under 80% of Area Median Income (AMI), however, more than 1,000 households earning 80% of AMI or below are paying more than 30% of their income toward housing costs. There are 168 units affordable to households with income at or below 30%AMI and more than 335 cost burdened households with incomes at or below 30%AMI. The Plan identifies existing housing needs gathered through community engagement and analysis including need for affordable housing, need for a variety of housing types, need for links between employment and housing, and need for maintenance and improvement of existing housing stock. The City currently has 406 publicly subsidized housing units, including 84 that are age restricted for older adults. The Plan acknowledges the 2021-2030 affordable housing need allocation of 434 units; 240 of which are needed at prices affordable to households earning 30% of AMI or less, 177 of which are needed at prices affordable to households earning between 31 and 50% of AMI, and 124 of which are needed at prices affordable to households earning between 51 and 80% of AMI. As shown in Figure 6 of this report, the Plan guides sufficient land expected to develop in the 2021-2030 time period at a minimum of six units per acre to all for development of 338 housing units to meet the need for units between 51 and 80% of AMI and 12 units per acre to allow for development of at least 514 new housing units to meet the need for units affordable to households earning 50% of AMI or less. The housing implementation plan component of the Plan describes that the City will rely on a robust partnership with the Dakota County CDA for the implementation of many housing tools in Farmington. The Plan also indicates that the City will strongly consider an application for Livable Community Account(LCA)funds for residential proposals that provide housing affordable below 80% AMI. The City states that they will evaluate the appropriateness of a local 4d program and explore opportunities to collaborate with a community land trust. Water Supply Reviewer: Brian Davis, ES— Water Supply Planning(651-602-1519) The Farmington 2040 comprehensive plan is consistent with WRPP policies related to water supply, including the policy on sustainable water supplies, the policy on assessing and protecting regional water resources, and the policy on water conservation and reuse. The community prepared a Local Water Supply Plan (LWSP) in 2018 that was submitted to both the MN Department of Natural Resources and Metropolitan Council and reviewed under separate cover. The LWSP was considered complete by the Council and a review letter was sent to the DNR on June 7, 2018. The DNR has not yet approved this LWSP. Community and Subsurface Sewage Treatment Systems (SSTS) Reviewer:Jim Larsen, CD— Local Planning Assistance (651-602-1159) The Plan indicates that there are 84 SSTS and no public or privately-owned Community Wastewater Treatment Systems in operation in the City. City SSTS Code Title 7, Chapter 3 is consistent with Page-5 I METROPOLITAN COUNCIL Dakota County SSTS Ordinance 113, Minnesota Pollution Control Agency Chapter 7080-7083 Rules, and Council WRPP requirements. Special Resource Protection Solar Access Protection Reviewer: Cameran Bailey, CD—Local Planning Assistance (651-602-1212) The Plan is consistent with statutory requirements (Minn. Stat. 473.859) and Council policy regarding planning for the protection and development of access to direct sunlight for solar energy systems as required by the Metropolitan Land Planning Act(MLPA). The Plan includes the required solar planning elements. Aggregate Resource Protection Reviewer:Jim Larsen, CD—Local Planning Assistance (651-602-1159) The Plan indicates, consistent with the Council's aggregate resources inventory included in Minnesota Geological Survey Information Circular 46, that there are deposits of aggregate resources present within the City. Mining activities are anticipated to be an ongoing land use within undeveloped areas of the City. Any new gravel mining operation will be limited to an interim use. While there are no active mining operations within the City at this time, an Extraction and Mining Ordinance is contained within City Code as guidance for any future mining operations that might occur in the City. Historic Preservation Reviewer: Patrick Boylan, CD—Local Planning Assistance (651-602-1438) The Plan contains a section on Heritage Resources and includes details on preservation planning and identification, evaluation, and education. The Plan provides details on the general Farmington area for historic Mdewakanton Dakota presence. The Plan cites that implementation will be under the City's heritage resource preservation regulations. Plan Implementation Reviewer:Patrick Boylan, CD—Local Planning Assistance (651-602-1438) The Plan includes a description of and schedule for any necessary changes to the capital improvement program, the zoning code, the subdivision code, the SSTS code, and the housing implementation program. The Plan, with supplemental materials, describes the official controls and fiscal devices that the City will employ to implement the Plan. Specific implementation strategies are contained in individual chapters of the Plan, with capital improvements planning detailed in the appendix. Compatibility with Plans of Adjacent Governmental Units and Plans of Affected Special Districts and School Districts The proposed Plan is compatible with the plans of adjacent jurisdictions. No compatibility issues with plans of adjacent governmental units and plans of affected special districts and school districts were identified. Documents Submitted for Review In response to the 2015 System Statement, the City submitted the following documents for review: • September 18, 2018: Farmington 2040 Preliminary Plan • June 28, 2019: Farmington 2040 Comprehensive Plan • September 12, 2019: Revisions to sanitary sewer, forecasts, housing, land use, and transportation sections Page-6 I METROPOLITAN COUNCIL Attachments Figure 1: Location Map with Regional Systems Figure 2: Thrive MSP 2040 Community Designations Figure 3: Existing Land Use Figure 4: 2040 Future Land Use Figure 5: Development Staging Figure 6: Land Guided for Affordable Housing Page-7 I METROPOLITAN COUNCIL Figure 1. Location Map with Regional Systems Lakeville Iii; 14-$4-rr41 --------•- �r< t t .. .._ -.._.. � I u1' ., T J— 1a1 31` C4as i. - ,-I I, ino A:-` `T (--- (-(:.:\ ,"I" -\-,,,,..! . ---1-Yd` �� 7 r iq././J(1. 11± T-----: ,7 ,....1w1. t 1 TatSTSW , 1 ti . I ' 01al `'l I. r r --V.....) f.7 {w I i ,I `� i I � Ili 1 Farmingtt �h , }' � a l� \_- I _. ) I ./` tai -i _ _ _ S �� - MN'T L._[_.. - _i i!, El1.- 4•!D _ 2211SW, NI■-_■ • .,\ ir tf 11 `. i _t JUU U�UU. A■�■ . . 4;. a Morton $`»r R o�+ar Thai • II iiiij l 1■■ i -..._ ---- ;-,,,,, ok =_ ...'r !.. I I .� ■.11 liI■t � ii 1i= 2x3TtSTsu -}w i.rillurenew :, I Castle I Eureka Twp. I Ij= L I Rock L...—....f i - - LJ. J�"_ I AithorC /•� _ _. 1 1.E _ mace:ttivnia Tcc_.i�u u�:_ +.c_...c1.2r5e k iV-rJi Mies Regional Systems Transportation Recreation Open Space Regional Park Search Areas and Transitways Regional Parks Regional Trail Search Corridors 2:4 Transportation System Policy-adopted January2015 Existing(Open to Public) . Boundary Adjustment -Existing ---• Planned Current Revenue Scenario ! In Master Plan(Not Open to Public) -- -• Planned Current Revenue Scenario- !/� Search Area Planned Units CTIB'Phase 1 Projects Regional Trails -�-->— Potential Increased Revenue Scenario Existing(Open to Public) .:Regional Trail Search Corridors Regional Highway System ..•..Exi ting(Not Open to Pubic) - Existing Principal Arterials ...,.,.Planned -- Local Streets naaaa Planned Principal Arterials Wastewater Exiting Minor Arterials10,1 -Existing State Trails '��::/ Meters Planned InorArteriak Other Parks.Preserves.Refuges ❑ Lift Stations and Natural Areas Existing Other Arteriels h10ES Interceptors Planned Other Arterials ME IutCES Treatrrent Plants 'Counties Transit Improvement Board(CTIB) Page-8 I METROPOLITAN COUNCIL Figure 2. Thrive MSP 2040 Community Designations 1 i i Apple i Burnsville 1 Valley i Rosemount i I i Coates i Lakeville Empire Twp. Farmington • r 1 1 New Market Eureka Castle Twp. Twp. Rock Twp. 1 I 0 az 1 . - — Extent of Main Map I 1 ,„,\.,,,,, i f, Community Designations c /_ �\ i 1 Outside Council planning authority Emerging Suburban Edge I ,t I-----_t (r f j j Agricultural Suburban Edge 1----; -'7''. 1 I 1 Rural Residential Suburban 1 I r : Diversified Rural Urban I /-s--^�,,.// (I. , I Rural Center Urban Center l__I t I F I ~ JJ j ,County Boundaries — - -'-- - 1 1 City and Township Boundaries Lakes and Major Rivers Page-9 I METROPOLITAN COUNCIL Figure 3. Existing Land Use s .. xl \-.: .' st.‘ . . , t,-4 1 4.4 .i:,4,,,,,,,,,,%.', i01111111.4.10.14. A .. ,..., ... . 4 .... .T.: „ . , a- a ••••••••••••••••,... ac:a.Lia I . 1 5C I fk i I 1 I.;'' a:3 Currant Cly Bouhaary Singtit-Famity Deloctiod as ponowen spook t , ‘,..s..„..-- Risers&Stritanis : Single-Famty Attached 1111 Gad Cotes* — , ' On Waite all PA.111,I...rn 1 y ROW Existing Land Use,2017 111111 Corn-mono! tM4uie 11111111=1111111111111.1111111111111111.„ Agr gl.iltiti'. IIII inewitai VA Where Page-10 I METROPOLITAN COUNCIL Figure 4. 2040 Future Land Use I e„,,,...".. ,,,,N,', .,;./ ,:;7,....,,,,,,,7:tviN,I.,..i...4.1.- it r' {) Y►. * e i xC'^ P R.7 - s }d _ aj i, rya i_ _ �g -- . } y e ,,,, , Milli I . r I !,: F'.41............:61., mi.:lir,: _ _ ..'gncubJfe Mxed Use ICommeraabinwetr�,,r low Node"Ree serniM[1435 WA - a d,wial Lav Medium Residential 11641.0 teal mg Pfb11c'&emi-Putic !? 1._.. ... _ ,m_.__._w._...._ ;:_.vi Medium Usns+a R*iidsniA1(8 412 0 ] Pw Open Space _) 1111ne lige Oeay RAsldenlla 112 0.40.0 uaJ Row + Mu ed-Use{CcmmJRes)16,040.0 We) iim Non-Oesq sled Corseted& Page-11 I METROPOLITAN COUNCIL Figure 5. Development Staging 4 . g-- --- - ...., ,, E,,,,thLy,-ni.-,vgrs-t,•,, - - , ' ---,. 1 , // i E _ 1 ! h g 7-77, 1 (sli ... -, ,tl .„ ,4""'"; l'I. ---;„....,A, .24.V.Alii, Its.....3'''' 1."n- -----''- --1._ JtIo.is i . •\ t .1.,..,,, 44.4An' q,.:` •ftr,-..- -- L-- _ ...*P,' , Ei irArpa.,i ,' 0,_....c d tSit lith 1.10011140 ',aw ...&&& _ •i .*. -1 A. '''."" : - rA: . 111 -• ,,,... ......erz, gfi mrtittl; „ss„el t,. ti rt- ' 50 _I Ow* o p-.4,•.. If , if a ge•'„t V - 0 JO -....-....., ,e,.... ' 7.S. • "',,, 1 ,a .... „„„ ... 1 1,1 - , ''''l"1 .., 51 :ei tormrtig„ ; I: .11,44,,,tmihnit I„Lti 1 II ,•„:„..T11 HT.-,41.• '' ' = 4 . a 0, 50 2030-2040 ____ Anticipated Development Phase .....iiiiii /Developed Post 2040 _ E._51).___..r .___ 2017-2020 *.fri-- Township tJ 1., , 1i 2020-2030 EN Park/Open Space fl =1 1 N it ,I , P _--------- r.___IH—, Li 1--- 1.,..a411111 -— P - 31 i4- 111 k Miles i i I I 1 , i i ,' 0 I 78 I 1 , 2 r . 0 Page-12 I METROPOLITAN COUNCIL Figure 6. Land Guided for Affordable Housing 2021-2030 share of regional need for Affordable Housing at 50%AMI and Below: 317 units 2021-2030 share of regional need for Affordable Housing between 51 to 80%AMI: 124 units TOTAL 2021-2030 share of regional need for Affordable Housing: 441 units 2021-2030 total regional need for Affordable Housing: 37,900 units Available Minimum Expected % Minimum Acres Density Residential nits Possible (units per ace) (if mixed use) Medium Density Residential 44.7 6 100% 269 High Density 28.1 12 100% 338 Residential Mixed Use Commercial 81.4 6 50% 245 . - II•- Tatal 154.1 852 Suffiicientl(insufficient)units affordable at 50%AMI and below possible in 21 areas with X12 units per acre minimum against share of regional need: Sufficient/(insufficient)total units affordable between 51 to 80%AMI possible in areas with 46 units per acre minimum possible against share of regional 390 need: Sufficienti(insufficient)total units possible against share of regional need: 411 Affordable units built since 2021: 0 METROPOLITAN SutficientAinsufficient)units possible adjusted for affordable units built: 411 COUNCIL Number of Comp Plan Amendments approved since Comp Plan Update: 0 Page-13 I METROPOLITAN COUNCIL CITY OF 0430 Third St., Farmington, MN 55024 FARMINCTON © 651-280-6800 © FarmingtonMN.gov TO: Mayor, Councilmembers and City Administrator FROM: Tony Wippler, Planning Manager SUBJECT: Prairie Waterway First Addition Final Plat DATE: December 16, 2019 INTRODUCTION Attached,for city council review and consideration is the final plat for Prairie Waterway First Addition. The final plat consists of right-of-way to be dedicated for 213th Street West and Spruce Street as well as two outlots. DISCUSSION The Sapphire Lake 1st Addition final plat was approved by the city council on April 1, 2019. Sapphire Lake is a multi-phased development on the east side of town generally located east of 14th Street and the Prairie Waterway and is bordered by 213th Street West to the north and Spruce Street to the south. 213th Street West was extended to the east from Cambodia Avenue with this initial phase. This extension required the crossing of property owned by the city(Prairie Waterway). Additionally, Spruce Street to the south will also have to be extended across the Prairie Waterway as part of a subsequent phase of this development. The right-of-way through the Prairie Waterway is not required for the construction of these roads as the city is the fee owner of the underlying land. However, it is appropriate to have the right-of-way separated out from the waterway/open space. The attached Prairie Waterway First Addition final plat does this. As previously mentioned the Prairie Waterway First Addition final plat consists of the right-of-way for 213th Street West(0.5303 acres) on the north end of the subject property and right-of-way for Spruce Street(0.8554 acres)that essentially bi-sects the subject property. Additionally,the first addition plat contains two outlots (Out lot A- 12.5474 acres and Outlot B- 13.4109 acres). Outlots A and B will combine four existing parcels (one platted outlot and three meats and bounds parcels)that make up a portion of the Prairie Waterway into two outlots. The preliminary plat for Sapphire Lake was approved by the city council on August 20, 2018. Right-of- way for both 213th Street West and Spruce Street were shown in the approved preliminary plat through the Prairie Waterway. The Prairie Waterway First Addition final plat is consistent with the Sapphire Lake preliminary plat. The Planning Commission reviewed the final plat at its regular meeting on December 10, 2019 and with a vote of 4-0 recommended approval of the final plat. BUDGET IMPACT NA ACTION REQUESTED Adopt the attached resolution approving the Final Plat for Prairie Waterway First Addition. ATTACHMENTS: Type Description D Backup Material Final Plat D Resolution Final Plat Resolution • 411 ji ; qi it .411 F 2} a -I. ! g bti y 2 RI8 ti i $ fr ii 5 3 a o z ; F to s II rF = o& 1I g r ds 1 R£▪ n� @9 s ° H = m = • m i 0' • 1 z T._ .61 . § °!A _ z . r IIII 88 zo fr I is ii_• i1 P t S X' j 0E. ! E 0 $ Fi I. 55 b r= s_ A 0 gg 6 IV :I. 13 v m a i1, p6 .L5 z V$ 7 m O F s § f 51 S 11 vI § nil* I o I..L U- < NJ W I— Q • I _ `" t a 15 �fr.3 . 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O 5 -' _„ae at mm a'a.ma.n 00 ag qe o" 0 z 0 F- 0 0 F— � ›— < 12.“2 •ts 3onads m'0iY0ic W W 0 ox 8 oo no }ni ISA�N�iI Q Iw, BERM '1S HL£lZ o RESOLUTION NO..R50-19 APPROVING FINAL PLAT AND AUTHORIZING SIGNING OF FINAL PLAT PRAIRIE WATERWAY FIRST ADDITION Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota, was held in the Council Chambers of said City on the 16th day of December, 2019 at 7:00 P.M. Members Present: Larson, Bernhj elm, Craig, Donnelly, Hoyt Members Absent: None Member Craig and Member Bernhj elm introduced and seconded the following: WHEREAS,the final plat for Prairie Waterway First Addition is now before the Council for review and approval; and WHEREAS, a public hearing of the Planning Commission was held for the preliminary plat on August 15, 2018, after notice of the same was published in the official newspaper of the City and proper notice sent to surrounding property owners; and WHEREAS,the City Council reviewed the final plat; and NOW, THEREFORE,BE IT RESOLVED that the above final plat be approved and that the requisite signatures are authorized and directed to be affixed to the final plat. This resolution adopted by recorded vote of the Farmington City Council in open session on the 16th day of December, 2019. Mayor Attested to the ,% day of December, 2019. ../C//51/1 City Administrator SEAL