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Home My WebLink About05.19.03 Council Packet City of Fannington 325 Oak Street Fannington, MN 55024 Mission Statement Through teamwork and cooperation, the City of Farmington provides quality services that preserve our proud past and foster a promising future. AGENDA REGULAR CITY COUNCIL MEETING May 19, 2003 7:00 P.M. CITY COUNCIL CHAMBERS 1. CALL TO ORDER 7:00 P.M. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA 5. ANNOUNCEMENTS/COMMENDATIONS a) Introduce Promoted Employee - Public Works b) Heritage Preservation Award - Karen Finstuen - Administration c) Bond Rating Upgrade - Robin Roland - Finance 6. CITIZEN COMMENTS / RESPONSES TO COMMENTS (Open/or Audience Comments) 7. CONSENT AGENDA a) Approve Council Minutes (5/5/03 Regular) (4/30/03 & 5/5/03 Special) b) Parks and Recreation Commission Minutes - Parks and Recreation c) School and Conference - Police d) Accept Donation - Dakota Electric - Parks and Recreation e) Accept Donation - Dakota Electric - Parks and Recreation t) Temporary Appointment Recommendation - Rambling River Center Advisory Board - Parks and Recreation g) Approve Change Order - 195th Street Project - Engineering h) Approve Traffic Control - School Speed Zones - Engineering i) Approve Bills 8. PUBLIC HEARINGS a) Approve Therapeutic Massage License - Sharon Munich - Administration 9. AWARDOFCONTRACT o. PETITIONS, REQUESTS AND COMMUNICATIONS a) April 2003 Financial Report - Finance b) Schedule Budget Goals Workshop - Administration c) Adopt Resolution - Riverside West Preliminary and Final Plat - Administration Action Taken Pages 774-775 Pages 776-777 Pages 778-791 Pages 792-794 Page 796 Pages 798-799 Pages 800-801 Page 802 Pages 804-806 Pages 808-809 Page 810 Page 811 Pages 812-813 Page 814 Pages 816-822 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) Adopt Resolution - Sale of $3,740,000 General Obligation In1provement Bonds Series 2003A - Finance (Supplemental) b) Background Information City Administrator Performance Evaluation - Attorney 13. COUNCIL ROUNDTABLE 14. ADJOURN Pages 823-836 City of Farmington 325 Oak Street Farmington, MN 55024 Mission Statement Through teamwork and cooperation, the City of Farmington provides quality services that preserve our proud past and foster a promisingJUture. AGENDA REGULAR CITY COUNCIL MEETING May 19, 2003 7:00 P.M. CITY COUNCIL CHAMBERS Action Taken 1. CALL TO ORDER 7:00 P.M. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA 5. ANNOUNCEMENTS/COMMENDATIONS a) Introduce Promoted Employee - Public Works b) Heritage Preservation Award - Karen Finstuen - Administration c) Bond Rating Upgrade - Robin Roland - Finance Introduced Presented Information Received 6. CITIZEN COMMENTS / RESPONSES TO COMMENTS (Open for Audience Comments) 7. CONSENT AGENDA a) Approve Council Minutes (5/5/03 Regular) (4/30/03 & 5/5/03 Special) b) Parks and Recreation Commission Minutes - Parks and Recreation c) School and Conference - Police d) Accept Donation - Dakota Electric - Parks and Recreation e) Accept Donation - Dakota Electric - Parks and Recreation f) Temporary Appointment Recommendation - Rambling River Center Advisory Board - Parks and Recreation g) Approve Change Order - 195th Street Project - Engineering h) Approve Traffic Control - School Speed Zones - Engineering i) Approve Bills Approved Information Received Information Received R30-03 R31-03 Approved Approved Approved Approved 8. PUBLIC HEARINGS a) Approve Therapeutic Massage License - Sharon Munich - Administration Approved 9. AWARDOFCONTRACT '0. PETITIONS, REQUESTS AND COMMUNICATIONS a) April 2003 Financial Report - Finance b) Schedule Budget Goals Workshop - Administration c) Adopt Resolution - Riverside West Preliminary and Final Plat- Administration Information Received June 4, 2003 R32-03 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) Adopt Resolution - Sale of $3,740,000 General Obligation In1provement Bonds Series 2003A - Finance (Supplemental) b) Background Information City Administrator Performance Evaluation - Attorney 13. COUNCIL ROUNDTABLE 14. ADJOURN R33-03 Information Received L POWDER COATING PERFORMANCE IND. COATINGS, INC PHONE 651-463-3388 FAX 651-463-3556 P.O. BOX 127 FARMINGTON, MN. 55024-0127 MAY 19,2003 SUBJECT: BUILDING STRUCTURE IND. PARK DEAR CITY COUNCIL, WHEN MY BUILDING WAS CONSTRUCTED IN THE INDUSTRIAL PARK WE HAD TO COMPL Y WITH THE COVENANTS THAT WAS IN FORCED AT THAT TIME. CERTAIN TYPE OF MATERIALS HAD TO BE USED DEPENDING ON WHERE THE SITE WAS LOCATED IN THE PARK. THE AREAS CLOSE TO HWY 50 WAS LIMITED TO A MORE ESTHETIC LOOK THAT THE LOTS LOCATED IN THE REAR OF THE PARK. I UNDERSTAND THAT WHEN THE 2ND ADDITION WAS ADDED TO THE PARK SOME OF THlS WAS CHANGED TO ELIMINATE ANY METAL BUILDINGS BEING CONSTRUCTED. MY GUESS THlS DONE TO UPHOLD THE INTEGRITY OF THE OF THE BUILDING CODES TO MAKE IT COMPATIBLE TO EACH BUILDER. I WOULD BE OPPOSED TO ANY CHANGE IN THE BUILDING CODES THAT WOULD ALLOW THlS TO EFFECT THE VALUE OF MY INVESTMENT IN THE PARK. THERE HAS BEEN A LOT OF INFORMATION ABOUT THE POTENTIAL DAY CARE BUILDING CONSTRUCTION IN THE INDUSTRIAL PARK USING HARDY BOARD FOR THE OUTSIDE CONSTRUCTION OF THE BUILDING. I AM NOT SURE OF WHAT ALL THIS IS MADE OF BUT I FEEL THAT MORE STUDY SHOULD BE MADE TO INSURE THAT THE INTEGRITY OF THE BUILDING CODES THAT WAS INSTITUTED BE UP HELD TO KEEP THE VALUE OF THE BUILDINGS THAT HAS BEEN CONSTRUCTED. I DO NOT OPPOSE ADA YCARE CENTER TO BE LOCATED IN THE PARKAS LONG AS THE CHILDREN IS PROTECTED IN A SAFE ENVIRON~NT FROM PARK TRAFFIC. IF SPRlNKLERS ARE REQUIRED IN ONE BUILDING IT .. SHOULD BE IN EVERY BUILDING. THANK YOU CE INDUSTRIAL COATINGS TO PROTECT AND BEAUTIFY clJ T Powder Coating Company Honorable Jerry Ristow Mayor City of Farmington Farmington, MN 55024 May 19, 2003 Mayor Ristow, I am writing this letter to express my reservations with the proposed day care facility within the Farmington Industrial Park. Unfortunately, I am not able to attend this evening's council meeting to voice my concerns in person. I have asked Jeff Thelen, who plans to speak on this issue this evening, to deliver this letter to you in the public comment section of tonight's agenda. I have two broad areas of concerns regarding the proposed day care center. Let me briefly explain each, One area of concern is the appropriateness of a day care facility in an industrial park. Increased traffic levels in to the industrial park are a concern, especially during our busy shipping times (6-8 AM and 4-6 PM) which I am afraid will coincide with the day care's busy time for child drop off and pick up. I am concerned about not only the traffic in the park, but the ability for the extra volume of traffic to be able to safely enter and exit the park on Eaton Ave. The ability to enter Hwy 50 from Eaton Ave has been an issue for many of us for the last few years, and the added volume of traffic from the day care will only make it more difficult. I have concerns about things, such as odors and noises, which are generally acceptable in an industrial environment, but may not be so acceptable to the parents and children utilizing the day care facility. I can see the potential for tension between businesses on these types of issues in the future. The second area of concern is the proposed materials of construction. The high quality standard that guided the buildings in the industrial park is important to me. My building is the biggest asset I own. The value of my building is in part determined by its location and the quality of the other buildings in the park. While I am not an architect, I am comfortable in saying that the proposed building materials are not the same as the pre-cast concrete used in my building. It is of lesser value. I am concerned that, should the day care prove not to be successful, the park will have a building for sale of lesser quality construction and with a unique design that will make it difficult to remarket. While all buildings carry some remarket risk, it seems to me that the day care facility's risk would be far greater than the other buildings in the park. It does have the potential effect of lowering the value of my building. That would not only hurt me, but the city as well, in that lower industrial building values would also mean less property tax revenue for the city. 21020 EATON AVENUE · FARMINGTON, MINNESOTA 55024 PHONE 651-463-4664. FAX 651-463-4627 E-Mail: jitpowdr@aol.com · Web Site: www.jitpowdercoating.com This day care proposal has only been brought to my attention in the last three weeks. Yet neighboring business owners tell me that I, or other owners in the park, must act by Friday to appeal the decision to allow the day care development to go forward as currently proposed. That places me in a difficult position. I would have preferred to have been engaged in the planning process earlier rather than having to be in the reactionary position of filing appeals, thus delaying an owner's pursuit of starting up their business. A day care in Farmington would be a wonderful addition to the community. It is something that JIT Powder Coating supports. But I strongly believe that there are more appropriate places for a day care facility other than the industrial park, such as in the downtown area or in the proposed commercial development area, I would be supportive of additional city incentives to help the day care locate in those alternative areas. I ask that the Council take my concerns under advisement and consider a delay in proceeding with the current proposal until we can all have a better understanding of the ramifications of the decisior. to proceed. Sincerely, ~:~~~e~ President s-/1'-O:; Thelen Cabinet Company 21075 Eaton Avenue · Farmington, MN 55024 · Telephone: (651) 463-3442 · FAX: (651) 463-8331 Honorable Mayor Ristow City of Farmington Farmington, MN. 55024 Mayor and Council, I attended a meeting at the Farmington Maintenance facility about 3 weeks ago to voice my opposition to the plan to allow a Day Care Center with HandiPlank as an approved building material. I reminded staff there were covenants regulating this. I was assured there was no valid covenants regulating this. Thursday afternoon I was told by Kevin Carroll that Covenants do indeed exist, But he chose to apply more weight to City Code instead. He does not have the choice to ignore them. They must be followed as written. I have been informed that on Tuesday May 13th. The Farmington Planning Commission upheld the appeal of an applicant to allow HardiPlank as an approved Building Material. I was provided a tape of that meeting. At no time during the meeting was the fact that there also exists a Declaration of Covenants for phase I AND Phase 2 of the Farmington Industrial Park. This would have been an essential piece of information for the commission to Decide what the intent of the HRA in 1996 was when they wrote the covenants. Because of the lack of disclosure that the covenants are in effect, I will be asking City Council to override the decision of Farmington Planning Commission. Also to ask for a comprehensive study asio what the city wants for its industrial park. Sincerely, JCffr.tJi ) PrerjkU 51; City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us TO: Mayor, Councilmembers, City Administrator f\ FROM: Lisa Shadick, Administrative Services Director SUBJECT: Present Historic Preservation Award Certificate-Karen Finstuen DATE: May 19,2003 INTRODUCTION In recognition of National Preservation Week celebrated May 5-12,2003 the Farmington Heritage Preservation Commission (HPC) is requesting support from the City Council to present the year 2003 Preservation Award Certificate to Karen Finstuen. DISCUSSION This year's national theme for Preservation Week is "Cities, Suburbs and Countryside" and in keeping with this theme the HPC would like to recognize Karen Finstuen for her years of dedication and work in historic preservation in the City of Farmington. BUDGET IMPACT None. ACTION REQUESTED Join the HPC in recognizing Karen Finstuen for her contributions toward Heritage Preservation. Respectfully submitted, ~./I ~a~ Lisa Shadick Administrative Services Director In Recognition of Karen Finstuen WHEREAS, historic preservation is an effective tool for managing growth, revitalizing neighborhoods, fostering local pride and maintaining community character while enhancing livability; and, WHEREAS, historic preservation is relevant for communities both urban and rural, and for Americans of all ages, all walks of life, and all ethnic backgrounds; and, WHEREAS, it is important to celebrate the role of history in our lives and the contributions made by dedicated individuals in helping to preserve the tangible aspects of the heritage that has shaped us as a people; and, WHEREAS, "Cities, Suburbs and Countryside" is the theme for National Preservation Week 2003, cosponsored by the Farmington Heritage Preservation Commission and the National Trust for Historic Preservation. THEREFORE, on behalf of the City Council and the City of Farmington, /, Mayor Gerald Ristow, commend the dedicated efforts of Karen Finstuen for her contributions in preserving Farmington's history by playing a key role in the establishment of the city's historic preservation program, and being a highly visible public supporter of the efforts to preserve Farmington's heritage. In witness whereof, I have hereunto set my hand and caused the seal of the City of Farmington to be affvced this 19'-h day of May, 2003. Gerald Ristow, Mayor Date 5c City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.cLfarmington.mn.us TO: Mayor, Council Members, City Administrator tf\ FROM: Robin Roland, Finance Director SUBJECT: Bond Rating Upgrade DATE: May 19, 2003 INTRODUCTIONIDISCUSSION In the course of preparing for the issuance of the G.O. Improvement Bonds of 2003A, staff participated .in a dialogue with Moody's Investors Service on May 14, 2003. The result was an upgrade to the City's bond rating from Baal to A3. Moody's Investors Service is an internationally recognized agency which provides ratings on investments. Moody's provides an independent, objective assessment of the creditworthiness of debt obligations for the public finance market. The rating system is an easy to understand ranking for both key parties (investors and issuers) in a public finance transaction. Bond ratings range from Aaa to C, with Aaa bonds being judged as the best quality. Bonds with an Aaa rating carry the smallest degree of investment risk and therefore, bonds with the Aaa rating attract the lowest interest rates payable. The City of Farmington's bond rating has been Baal since before 1990. Changes in bond ratings occur so as to reflect variations in the intrinsic position of individual bonds and indicate that Moody's observes some alteration in the investment risk of the bond. An upgrade of the City's bond rating to A3 indicates that Moody's has noted a strengthening of the City's financial situation reflecting well managed financial operations and successful development initiatives with in the City. BUDGET IMPACT Normally, the higher the bond rating, the lower the interest rate the City would expect to pay on the debt issued. Lower interest rates mean less expense to the City's taxpayers. Actual interest rates will be apparent at the bond sale on Monday May 19,2003. ACTION REOUIRED For Council's information. Respectfully submitted, ~;fJ Robin Roland Finance Director 7a..., COUNCIL MINUTES REGULAR May 5, 2003 1. CALL TO ORDER The meeting was called to order by Mayor Ristow at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE Mayor Ristow led the audience and Council in the Pledge of Allegiance. 3. ROLL CALL Members Present: Members Absent: Also Present: Audience: Ristow, Cordes, Fitch, Fogarty, Soderberg None Joel Jamnik, City Attorney; Ed Shukle, City Administrator; Robin Roland, Finance Director; Kevin Carroll, Community Development Director; Dan Siebenaler, Police Chief; Randy Distad, Parks and Recreation Director; Lee Mann, Director of Public Works/City Engineer; Lisa Shadick, Administrative Services Director; Brenda Wendlandt, Human Resources Director; Cynthia Muller, Executive Assistant Jim Allen, Glen Nord, Randall Pederson, Aaron Tinklenberg, Shawn Scovill, State Representative Steve Strachan 4. APPROVE AGENDA MOTION by Soderberg, second by Fogarty to approve the Agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS a) Swearing-In New Employee - Police Department Officer Shawn Scovill was sworn-in by City Administrator Shukle. 6. CITIZEN COMMENTS State Representative Steve Strachan gave an update of activities taking place at the House of Representatives. 7. CONSENT AGENDA MOTION by Soderberg, second by Fogarty to approve the Consent Agenda as follows: a) Approved Council Minutes (4/21/03 Regular) b) Approved Joint Powers Agreement Dakota County Drug Task Force - Police c) Received Information School and Conference - Police d) Received Information School and Conference - Human Resources e) Approved Appointment Recommendation Public Works - Human Resources f) Adopted RESOLUTION R28-03 Setting Public Hearing for June 2, 2003 for Issuance of Bonds Trinity Nursing Facility, Trinity Terrace, and Vacant Trinity Hospital - Finance g) Set May 19,2003 Public Hearing Liquor License - Administration Council Minutes (Regular) May 5,2003 Page 2 h) i) j) Approved Tobacco License Transfer - Administration Adopted RESOLUTION R29-03 Scheduling Assessment Hearing 195th Street Pr~ect-Engineering Approved Wetland Health Evaluation Program Joint Powers Agreement- Engineering k) Approved Bills APIF, MOTION CARRIED. 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS a) Appoint Council Representatives to Recreational Task Force - Parks and Recreation During the April 21, 2003 Council Meeting, Council approved assembling a Recreational Facilities Task Force. Staff requested Council appoint two Councilmembers to the Task Force. MOTION by Soderberg, second by Fitch to appoint Councilmembers Fogarty and Cordes to the Recreational Task Force. Voting for: Ristow, Fitch, Soderberg. Abstain: Cordes, Fogarty. MOTION CARRIED. b) Schedule Joint Farmington/Castle Rock Meeting - Ash Street Project- Engineering Staff has been contacted by Castle Rock to schedule a meeting to finalize the Ash Street Project Report. Acceptance of the report at the meeting would officially identify the improvements proposed for the project with the estimated cost. The project cannot go forward until it is ordered at a public hearing by both jurisdictions. June 23 was preferred, or June 9 after the HRA meeting. Staffwill contact Castle Rock. 11. UNFINISHED BUSINESS 12. NEW BUSINESS 13. COUNCIL ROUNDTABLE Councilmember Fogarty: Would like to determine a date Council could meet to set up City Administrator Shukle's one year review and determine some standards for the review and set some goals. City Attorney J amnik stated if the discussion will be an overall process it would be an open meeting. If the discussion will be an evaluation it would be a closed meeting. Councilmember Fogarty would like to clarify the current Council Minutes (Regular) May 5, 2003 Page 3 policy, and make sure all agree it means the same thing. City Attorney Jamnik will distribute the current policy at the next Council meeting. If there needs to be a discussion, it could be held at that time. If there needs to be another meeting, it could be scheduled at that time. The normal time line would be to distribute questionnaires in June, with the completion in September. Mayor Ristow agreed that Council needs to review the policy first. It has been in place since 1995 or 1996. Councilmember Fogarty attended the Miss Farmington Pageant last Friday. It was a great kick-off event for Dew Days and thanked staff for doing a great job. Councilmember Soderberg: Attended the Volunteer Appreciation Dinner at the Rambling River Center. There was a good crowd, and good entertainment. He appreciates the volunteers that make the city work. Councilmember Fitch: Thanked staff for repairing 182nd Street. Mayor Ristow: Thanked Parks and Recreation Director Distad for the Arbor Day Celebration. He also thanked Mrs. Sprute for bringing her fourth grade class to help plant trees. 14. ADJOURN MOTION by Cordes, second by Soderberg to adjourn at 7:22 p.m. APIF, MOTION CARRIED. Respectfully submitted, {L~~ ~ /Yl ~ :;r ~ ~--e..:-(/ Cynthia Muller Executive Assistant City Council/City Hall Task Force Workshop Minutes April 30, 2003 Mayor Ristow called the meeting to order at 6:00 p.m. Absent: Also Present: Mayor Ristow, Councilmembers Cordes (arrived at 7:00 p.m.), Fitch, Fogarty, Soderberg Jim Gerster, Jr., Sarah Miller, Randy Oswald, Ben Barker, Jeff Krueger, Tuffy Westenberg, Darlene Grabowski, Wayne Lankford, Michael Cox, John McNamara Ed Shukle, Robin Roland, Kevin Carroll, Dan Siebenaler, Randy Distad, Lisa Shadick, Brenda Wendlandt, Cynthia Muller Tim Rice, Ron Thelen, Cleota Epps, Lee Mann Michelle Leonard Present: The purpose of the meeting was to come to a consensus as to how to proceed. Mr. Jim Gerster, Jr. opened the meeting, indicating that the Task Force has established there is a need for a new City Hall, due to the physical space not being adequate, and also the size ofthe Council Room is not adequate for large meetings. The Task Force firmly believes something needs to be done and this need will not go away. The city is growing and the residents needs have to be met. The Task Force selected the site at 3rd and Spruce Streets to build a new City Hall. This site was selected because it is the cheapest, employees will not be displaced during construction, and the location is the most obvious and beneficial as it could be an anchor to the downtown and the Spruce Street corridor. Councilmember Fitch stated his number one priority is finances. Major projects coming would include a new City Hall, Park and Recreation facilities, Main Street, Elm Street, and Ash Street. He would like to review the CIP and prioritize as to which projects the city can afford and when. According to staff, the tax capacity rate increased two years ago with all cities when HACA was removed. Even with an increase in the levy, the tax capacity rate went down two points. As long as the levy is not increased, the tax rate will continue to drop. Mayor Ristow questioned whether the 3rd and Spruce Street site was large enough for a building and also allow adequate parking. He was also concerned about finances, and the elevator being so close and the dust hazards it could create. When the current City Hall was built in 1968, he understood a second story could be built. The Mayor agreed the city does need a new City Hall, but he felt we would be trading one space for another and that 3rd and Spruce Street was not the proper area. He did not want to see City Hall run out of space again in 15 years. The Task Force did address this issue during their meetings, Gerster said, and chose the Spruce Street location because there is room to add on. The current location has limited space. As far as financing, there are many ways to finance the project. The task force felt lease revenue bonds would be the best. A park and recreation project would not use lease revenue bonds and would have a separate way of financing. The city needs to make the downtown a viable entity. A new Council/City Hall Task Force Workshop April 30, 2003 Page 2 City Hall is the key to doing that. This need was established by the previous task force in 1999. To obtain new businesses, the city needs to look like we care. We have the most unique town in the area. The city has been proactive with the Maintenance and Police facilities. Councilmember Fitch stated he is not saying the city doesn't need a new City Hall. He would like to review the CIP and financing first. Councilmember Soderberg recalled that in 1999, the Task Force listed City Hall as a number 3 priority. The Maintenance and Police facilities have been completed, so that moves City Hall to the top. The Task Force asked Council where they thought a good location would be. Mayor Ristow would like to see City Hall stay in its current location as parking is not as much of an issue. Michael Cox stated the Task Force saw value in being next to the library and sharing that parking lot, and there is also the 2nd Street parking lot. When Lakeville built their new City Hall, they also saw the value in connecting the City Hall with the library. As far as dust from the elevator, there are mechanical systems that can filter dust. The Task Force noted that neither the library nor the IDEA School has a problem with dust. There are only 2-3 days with dust. Mayor Ristow stated he had lived in the area, and dust could be a problem for visitors and employees. He would like to see the city vacate 4th Street and buyout the motor parts store. Mr. Carroll Westenberg, Task Force member, indicated that during their review of financing, the Task Force noted that the difference in cost between the two sites was not a great issue. The 3rd and Spruce Street location is owned by the HRA and has been hard to sell. It would be a good location for City Hall, and the current City Hall location would be easier to sell. It was also noted the county felt the location was good enough for their library. The Task Force felt it was very important to keep City Hall downtown. The elevator is a downside, but the Rambling River Center, the library, and the City Hall could act as an anchor for the downtown and the Spruce Street corridor. Expanding to the east of the current location had not been discussed. The Task Force is in favor ofthe Spruce Street location. The Task Force felt it should be explained to the taxpayers why it is best to do this project now rather than wait. People don't think about staff and the conditions they are working in. There would be more productivity ifthere were more space. The payroll for city employees is $1,246,500/year. If there were 20% more production, the city would save $249,000/year. Over 20 years this would amount to $5 million. Payroll will go up, but the savings in payroll will pay for the building itself. The Task Force suggested a brochure be produced explaining this to the residents. If a City Hall is not built, over 20 years it would cost more money. Once the City Hall is built, the residents would be proud. (Councilmember Cordes arrived at 7:00 p.m.) Councilmember Fitch felt it was not too much to ask for Council to take 1-2 months to review the CIP and finances. The Task Force stated they have spent nine months reviewing finances. The purpose of this meeting was to answer questions. The Task Force has made a recommendation and it is up to the Council to decide. Regarding questions on taxes, the Council needs to work with staff. Mayor Ristow stated he has not had time to review the final report. The Task Force felt a delay would cost more money. They understood the need for the entire Council to review the project. The Council will review financing and which projects are the most important. Councilmember Fitch would be willing to have two meetings in May and one in June. The Task Force would like to be included in the final decision. Council/City Hall Task Force Workshop April 30, 2003 Page 3 Michael Cox sUlllffied up what the next step will be. The Council would like to do more analysis, and review another site. The concerns with the Spruce Street location are dust from the elevator, noise from the railroad tracks, parking, and hazardous chemicals from the Blaha site. The Task Force felt strongly that this should remain the number one priority and not be set aside because ofa street project. A timetable had been set for 6-9 months for input (from Fall to Spring), which would end at a good time for construction. Construction would take approximately one year. The total length of time is 19 months. Councilmember Soderberg stated Council will make a decision late July, or early August. Staff has looked at the taxable value of Farmington Printing and it exceeded the value of the property adjacent to Spruce Street. A price has been quoted for one year which is less than the taxable value and asking price of the property adjacent to City Hall. Mayor Ristow stated Mr. Blaha wants to sell now and not wait. Staff felt Mr. Blaha is looking for guidance from Council. Council reached a consensus to make a decision within the next 45 days. Councilmember Soderberg stated the Task Force did a fabulous job. He is confident with their recommendation, however, Council needs to review finances in terms of other projects. The meeting adjourned at 7:45 p.m. Respectfully submitted, ~=~ ;vrJJff-J 'Cynthia Muller Executive Assistant City Council/Planning CommissionIHRA Workshop Minutes April 30, 2003 Mayor Ristow called the meeting to order at 8:00 p.m. Absent: Also Present: Mayor Ristow, Councilmembers Cordes, Fitch, Fogarty, Soderberg Dirk Rotty, Ben Barker, Bob Heman, Chaz Johnson, Todd Larson Todd Arey, Yvonne Flaherty Joel Jamnik, Ed Shukle, Kevin Carroll, Robin Roland, Cynthia Muller Paul Hardt, Nick Roberts Dale Pettis, Jeff Thelen, Jan Karrmann, Larry White, Michelle Leonard Present: Industrial Park Lot Solit The meeting was held to discuss the splitting of a lot in the industrial park into three lots. One of the lots is being discussed for a daycare. Council first took a poll to see where they stood. Councilmember Fitch was in favor of the concept, as well as Councilmember Cordes, however there should be conditions placed on the type of building materials used. The Planning Commission would be willing to look at a lot split, and decide on a conditional use permit. Attorney Jamnik stated all three bodies needed to be on the same page. A simple majority is required of each body. A no vote would end the project. Staff stated the lot in question is in the 2nd Addition of the industrial park. There is park/open space to the north and a pipeline easement through the middle, which does not allow for structures. By splitting this area into three lots, there would be a 50-foot easement along the border of each lot. Lot 3 would have a future road on the east side, and the building would face east. This lot would include an extension to 208th Street for access until the road to the east is built. It is easier to sell smaller lots. Council asked about bringing in utilities and if the pipeline has been abandoned. The process is not that far along to review utilities and the pipeline has not been abandoned. Council stated within five years there have been no serious inquiries regarding the lot, and questioned how dividing this into three lots would make people buy it. Staffhas received inquiries about smaller lots. Once the lots are split, they would be available to advertise. Council then asked if there was additional cost for utilities to be run to three lots rather than one. Staff stated PIC had a similar issue and needed rerouting ofthe sanitary sewer. The HRA allowed additional funds through TIP for the project. Council expressed some concern that a permanent access from lot 3 to 208th Street would prohibit the city from imposing an assessment against the lot for the cost of the future road on the east side of the lot. The HRA felt the access to 208th Street would be temporary and future access would be from the east. The temporary driveway is too close to the intersection. This would be made clear when the lot is sold. City CounciVPlanning CommissionIHRA Workshop April 30, 2003 Page 2 The Planning Commission has dealt with lot 2. They would like a consensus ifthe lot split is approved. The city needs to decide ifthey should wait for a tenant for one large lot, or split the lot, and take the tenant for lot 2. The HRA asked ifthere were any drainage issues by splitting the lots. Staff stated the drainage would be addressed when the lots are split. Drainage costs have been dealt with and assessments would be paid by the developer of each lot. Mayor Ristow stated he has no problem with the lot split as long as architectural designs are met for the industrial park. The Planning Commission asked if the siding for the proposed daycare is concrete. Mayor Ristow stated according to the building official it is lap siding. Councilmember Soderberg stated the siding proposed did not fit the definition oftip-up siding or poured concrete, When the design standards were set, this material was not anticipated. The HRA agreed to the lot split with the contingency that access to lot 3 be changed from 208th Street to the east once the road to the east is built. Staff stated the lots are priced at $1.50/sq. ft. and include all assessments with the exclusion of County Road 31. As to when the road to the east will be built, depends on when the Murphy property is sold. The Planning Commission asked regarding the property for the daycare, what the building inspectors thought of the material. If it does not meet the design standards, the Planning Commission would have to approve a variance in order for Ms. Karrmann to be able to use HardiPlank. Attorney Jamnik stated the role of the building inspectors was to determine if the material requested matched the list of materials in the design standards. The quality of the material was not considered, just if it matched the list. The material did not exist when the list was made. A variance can be granted. Attorney J amnik also stated that considering the lot split does not mean an agreement has been reached to deviate from other standards. Chair Rotty stated the Planning Commission needed to determine whether a daycare is a reasonable use in the industrial park. Ifthey do not think it is appropriate, Ms. Karrmann needs to be advised. Commissioner Heman felt it was a good location for a daycare. He also thought the building materials could meet the requirements as the requested siding is poured and tipped up on site. He is in favor of the project. Commissioner Johnson agreed. The daycare could be utilized by industrial park employees. He agreed to consider the requested siding, but wanted more input from Council regarding the building materials. Commissioner Barker stated there might be a better location, but Ms. Karrmann is trying to keep her business in Farmington and he felt it could be a benefit to the industrial park. Commissioner Larson stated he is not against the daycare being in the industrial park. However, the requested siding does not meet the original intent of the industrial park. Chair Rotty stated the Planning Commission did support the Conditional Use Permit, however they did not reach a full consensus on the building materials. Councilmember Soderberg asked if the daycare is not approved, does this prohibit other businesses from in house daycare? Attorney J amnik stated the daycare would be defined as a separate or incidental use. To have daycare listed in the code as a conditional use avoids this. Ms. Jan Karrmann stated she has put several years of research into this project. There is not enough daycare in Farmington, and why should residents go out of town? There are two daycare centers in the city and they both are at maxi~um capacity. Industrial park businesses felt this would be a valuable asset to their employees. The industrial park is a great location. She does City Council/Planning CommissionIHRA Workshop April 30, 2003 Page 3 not want to construct a pole barn. Her building will look as good as any other building out there. Councilmember Fitch stated as far as design standards, the city has turned down other businesses that would not comply with those standards, and asked Ms. Karrmann if it would be a hardship for her to comply. Ms. Karrmann replied it would, as she might not be able to buy as much playground equipment, kitchen equipment, etc. Any additional equipment would have to be purchased later. She felt each case should be dealt with individually. This is not an industrial application. Mr. Larry White stated the siding is 90% cement and sand, and therefore considered a concrete product. They could build a building out of concrete block and paint it to meet the standards, but it would not look as attractive. They would like the building to have a more warm feeling to kids. The siding is warranted for 50 years. The building could be converted to light industrial use in the future if needed. Mr. Dale Pettis stated he is concerned about traffic, but is for the daycare. He would like to see 208th Street extended. Mr. Jeff Thelen asked if3M were here with a daycare, would it be allowed? He listed several businesses that were turned down. He asked how these businesses could be turned down and the city still consider a daycare. The city did not want the property used for a city garage but wanted to save room for an industrial use. He does not see the logic in allowing a daycare. Mr. Thelen then stated there are covenants written to allow a maximum of 10% steel covering. He asked if the city or HRA was hoarding property for their own use on 3rd and Spruce Street and saving it for a City Hall? Staff stated the City Hall Task Force has targeted that property for a new City Hall and is awaiting Council's decision. The HRA has a letter of understanding with Vinge Tile on 2 lots on Hwy 50. Mr. Thelen agreed that Vinge would be a good fit for the industrial park. HRA Chair Arey stated the HRA owns the lot at 3rd and Spruce Street and under staff recommendation they are not marketing it due to a possible new City Hall. Councilmember Cordes stated the siding is not an acceptable use. Attorney Jamnik stated if the Planning Commission feels the siding is acceptable, the Planning Commission can recommend a change to the ordinance. Hardi-Plank is not a listed acceptable use and the building official says it does not meet the design standards. Councilmember Soderberg stated it is a poured cast product, and he has no problem with it. Councilmember Fitch stated it is fine for residential use, but high standards have been set for the industrial park. Other businesses have been turned down that did not meet the standards. The question for the Planning Commission is does it meet current standards of the industrial park? Chair Rotty recommended a text amendment to the ordinance. Staff stated the covenants were adopted during the first phase ofthe industrial park. During the second phase the covenants became part ofthe ordinance. Council requested staff investigate the covenants and decide if the ordinance should be changed. Council agreed to divide the lot. Councilmembers Soderberg, Fogarty, and Fitch reached a consensus that daycare should remain as a conditional use in the industrial park. Councilmember Fitch stated the conditional uses should be reviewed for the future. Staff stated the requested building materials do not meet design standards for the industrial park. If Ms. Karrmann would like to appeal this, it would need to go to the Planning Commission. City Council/Planning CommissionIHRA Workshop April 30, 2003 Page 4 Blaha Propertv The HRA felt the best development opportunity for 3rd and Spruce Street would be to market the lot with the Blaha property. Mr. Blaha is willing to sell the property for $265,000. He will not sign a right of first refusal with the city. Council has agreed to decide on whether to move forward with the proposed City Hall project within 45 days. Councilmember Fitch suggested if the property is used for a City Hall, the HRA should buy the property. The meeting adjourned at 11 :20 p.m. Respectfully submitted, /; /.;7 r ........-., //p'? ~/"".vZ5ECa-/ '" r /u..e.tJ!.u /"7~ i...,/ Cynthia Muller Executive Assistant City Council/Planning Commission! Spruce Street Corridor Area Task Force Workshop Minutes May 5, 2003 Mayor Ristow called the meeting to order at 8:00 p.m. Present: Ristow, Cordes, Fitch, Fogarty, Soderberg Johnson, Heman, Larson Deb Nevala, Kris Akin, Jim Gerster, Jim Allen, Charlie Webber, Don Peterson, Bob Knutsen, Stan Knutsen, Doug Bonar, Mike Heinzerling, Larry Johnson, Mark Koegler, Randy Pederson, Glen Nord, Casey Wohlschlager, Mark Kujawa Ed Shukle, Kevin Carroll, Randy Distad, Jim Atkinson, Cynthia Muller Aaron Tinklenberg Also Present: Audience: Mr. Mark Koegler, of Hoisington Koegler, gave an overview of the planning process and tasks completed by the Spruce Street Task Force. The purpose of this meeting was to seek Council and Planning Commission input on the assembly of a master plan for the area. The planning process should be finished in late August. There is a market area surrounding Farmington that could support as much as 650,000-700,000 sq. ft. of commercial/retail space. A large area is agriculture and will be for several years. There are areas to the north of the city that have a good opportunity for retail, which is bad for Farmington. There are a number of grocery anchored areas being developed. Mr. Koegler then gave an overview ofthe layout ofthe area to be discussed which lies south ofHwy 50 and west of Denmark Avenue. The work ofthe Task Force yielded three concepts. Concept A - Main Street design; Concept B - Town Square design; Concept C - Parkway design. The Task Force liked Concept C with some elements of Concepts A and B. These were combined into Concept D - Composite Concept. Housing would be located to the south and mixed use on the north, with a trail to Rambling River Park. Mr. Koegler asked for comments and direction from the Council and Planning Commission. Commissioner Larson, who served on the Task Force, stated the reason for choosing the parkway is the other concepts had residential and commercial backing up to open space. Concept D draws people to the open space, and the parkway is for everyone to enjoy. Mayor Ristow was concerned with the rooftops and no room for the buildings to expand. He would like to see areas shifted to allow room for expansion. Mr. Koegler stated the Task Force liked the roadway split, but wanted it to reach to the town square area. Phasing ofthe area to the north should also be considered, which would allow flexibility. Pilot Knob Road could be a significant possible retail location. Mayor Ristow was concerned with traffic congestion on Denmark Avenue and restrictions on the trout stream. Councilmember Fitch stated if Pilot Knob Road is extended, Denmark would turn back to the city. He asked if the city was getting ahead of the process without an AUAR being completed. Mr. Koegler stated an AUAR requires an assumption ofland use patterns. This plan would help shape the land use plan in the AUAR. Councilmember Cordes felt the more open space there is, the better. Commissioner Larson stated the Task Force wanted to create a place people will want to come to. Councilmember Soderberg stated the amount of commercial space would be significantly more than 660,000 sq. ft., and he liked the parkway design. Mr. Koegler stated the intent is for the area to be a comfortable pedestrian corridor. Mr. Heinzerling felt the city is in need of apartments. In the southern portion ofthis area, the Task Force was looking at medium to high-density housing. Councilmember Soderberg asked if there would be many businesses fronting Hwy 50. Mr. Koegler replied there would be some frontage, but they are trying to focus inward toward the development. Councilmember Soderberg noted there are three interior corridors to Hwy 50. One is across from the entrance to the industrial park. In the future, if the county maintenance facility does not move, the city will have to phase around it. Councilmember Fogarty asked about infiltration basins. Mr. Koegler stated all concepts will have environmental techniques to control storm water. Councilmember Fitch inquired about controlling traffic without over- controlling it. Mr. Koegler replied they would be working with the traffic engineer. The concept provides a variety of ways to enter and exit the area. There are also various connections to trails and roadways. The view from Hwy 50 is not a wall of commercial businesses, which creates an attractive environment. Commissioner Johnson wants the businesses, but access also needs to be convenient. He would like to see a north-south connection. Commissioner Heman mentioned the roundabouts and felt they do not allow for good traffic flow. Mr. Koegler will work with Concept D to include a connection for easy access, storm water issues, and transportation. MOTION by Cordes, second by Soderberg to adjourn at 8:54 p.m. APIF, MOTION CARRIED. Respectfully submitted, ,~~~zL~ /Y7~~-<--/ 'Cynthia Muller Executive Assistant 76 DRAFT Farmington Parks and Recreation Advisory Commission Minutes from the Regular Meeting on April 9, 2003 Members Present: Randy Oswald, Paula Higgins, Dawn Johnson, Mike Buringa and Debby Ruth Members Absent: None Other's Present: Parks and Recreation Director, Randy Distad; Recreation Supervisor, Patti Norman; Senior Program Coordinator, Missie Kohlbeck; and Recreation Specialist, Kellee Omlid I. Call To Order Chair Oswald called the meeting to order at 6:00 p.m. Quorum was present. II. Approval of Agenda. Motion of Johnson and seconded by Ruth to approve the meeting agenda. APIF III. Approval of Minutes. Motion by Buringa and seconded by Oswald to approve the minutes from the March 12,2003 meeting. APIF IV. Presentations A. City of Farmington Recreation Program Staff on Winter and Upcoming Spring and Summer Programs Recreation Specialist Omlid distributed and briefed Commission members on this past winter's programs. Omlid also provided a brief description about some new programs that are going to be offered to the community this coming summer. Senior Program Coordinator Kohlbeck distributed and briefed the Commission members on the name change of the Senior Center to the Rambling River Center, which was approved by the City Council. Kohlbeck also provided information on the Volunteer Bucks program whereby any senior citizen that volunteers one hour at the Rambling River Center earns one dollar towards paying for fees associated with senior programs. Kohlbeck made Commission members aware of the Peddler in the Park Program that is coming up in May. Kohlbeck also distributed to the Commission members the Rambling River Newsletter. Kohlbeck explained a Green and Clean Camp that will be done as an intergenerational program. Recreation Supervisor Norman distributed and discussed with Commission members a draft of the summer brochure. She stated that it will be distributed to the community in early May. Norman introduced to the Commission members, that a swim bus will be provided to the community that will stop at parks to pick up youth and bring them to the pool. Some of this cost will be underwritten by a couple of community organizations that were approached for funding assistance. Commission members would like a report brought back at the end of the pool season to see how successful the swim bus was. V. Old Business A. Playground Plans for Park in Charleswood Development Proposals for playground equipment were received from MinnesotalWisconsin Playground, Earl F. Anderson and Webber Recreational Design, Inc. After some discussion, Ruth moved and Johnson seconded to recommend to the City Council to purchase the playground equipment from MinnesotalWisconsin Playground. APIF. Commission members would like Director Distad to research whether or not the roof style could be changed on the playground. B. Draft Park Dedication Ordinance Director Distad gave a brief summary to Commission members about the draft Park Dedication Ordinance. He stated that the City Attorney had reviewed the draft Ordinance and had made some revisions to it. Buringa moved and Johnson seconded to forward the draft Ordinance to the Planning Commission for a public hearing. APIF. C. Review Picnic Reservation Fees Director Distad reviewed picnic shelter fees for other communities. Director Distad recommended that the Commission consider the fee of $20.00 for a half day reservation or a $35.00 fee for a full day reservation, which came from Parks and Recreation Department staff members. He also suggested that this fee not be considered until 2004 due to the City already taking reservations for picnic shelters. Oswald moved and Johnson seconded that a recommendation be forwarded to the City Council for its consideration of approving picnic shelter reservation fees of $20.00 for a half day reservation or $35.00 for a full day reservation during the adoption of fees for 2004. APIF. D. Name for Park in Charleswood Development Director Distad briefed the Commission members on the park naming contest that was initiated with Meadowview Elementary School students. There were over 20 different names submitted. After some discussion, Ruth moved and Johnson seconded to recommend to the City Council that it approve the name Meadowview Park for the park in the Charleswood Development. APIF. E. Group Rental Rates for Outdoor Pool Recreation Supervisor Norman provided a brochure to the Commission members that explained group rental rates for the outdoor pool. Buringa moved and Oswald seconded to approve the brochure that explained the pool rental rates for groups. APIF VI. New Business A. Youth Scholarship Program Recreation Supervisor and Director Distad explained the Youth Scholarship Program. Of primary concern by staff is how to fund the scholarship program. An idea was presented that would result in a 3% fee taken off of each registration fee that would go into a fund that would be dedicated for the Youth Scholarship Program. Ruth moved and Oswald seconded to forward a recommendation to the City Council that it approve the Youth Scholarship Program. APIF B. Youth with Disabilities Recreation Supervisor Norman provided information about training that she is going to be providing to staff through a Therapeutic Recreation professional on working with youth with disabilities. She will be working with Carla Kress who works for the City of Eden Prairie in this capacity, to provide inclusion training to summer seasonal staff. C. Street Frontage for Park Area in Middle Creek Estates Director Distad updated Commission members on the street frontage for a future park in the Middle Creek Development. Distad stated that currently there is street frontage only through a trail that leads from the park to the street but that there may be an opportunity at a future time to acquire street frontage during a future development to the west of the park. D. City Council and Staff Retreat Director Distad updated Commission members on the retreat that occurred between staff and City Council members on Saturday, April 5th. Distad stated that one of the goals identified was for the City to expand its recreational opportunities and facilities. Discussion ensued about the Commission's feelings about approaching the City Council with a request to assemble a Recreational Facility Task Force in order to begin working on the identified goal. Buringa moved and Oswald seconded that a request be made to the City Council that the Commission be allowed to assemble a recreational facility task force. APIF E. Updates on Riverbend Development, Giles Addition and Spruce Street Corridor Director Distad reviewed with Commission members the Riverbend Development concept plan to see ifthere were any issues with it. No issues were expressed. Director Distad informed Commission members that the Giles Addition is a small piece of park property that currently is not ready for development due to construction on the homes adjacent to the small park area not completed yet. Director Distad updated Commission members on the Spruce Street Corridor Master Plan and stated that he would bring back information to the Commission as it becomes available. VII. Additions to the Agenda There were no additions to the agenda. VIII. Staff Report There was no staff report given. IX. May Agenda Items Commission member Buringa would like to place on the May agenda that a citizen wishes to speak about the bike moguls in Prairieview Park. X. Adjournment Ruth moved and Oswald seconded to adjourn the meeting. APIF'. Meeting was adjourned at 8:19 p.m. Respectfully Submitted, Randy Distad, CPRP Parks and Recreation Director and Recording Secretary 7~ City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us TO: Mayor, Councilmembers and City Administrator{ J.-. FROM: Daniel M. Siebenaler Chief of Police SUBJECT: School and Conference DATE: May 19, 2003 INTRODUCTION An opportunity has come up for both of the police sergeants to attend a management class for mid-level police supervisors sponsored by the Southern Traffic Institute. The Traffic Institute is a Division of the University of Kentucky and is recognized as one of the premier Law Enforcement Management Programs in the United States. DISCUSSION The class being offered locally is an advanced management course. Each of the Sergeants has previously attended the two-week basic supervisory course. BUDGET IMPACT Funding for this course is included in the 2003 budget. ACTION REQUESTED Information only. Daniel M. Siebenaler Chief of Police 7) City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.cLfarmington.mn.us TO: Mayor, Councilmembers, City Administrato;f: ~ FROM: Missie Kohlbeck, Senior Center Coordinator SUBJECT: Adopt Resolution Accepting Donation for Swim Bus DATE: May 19,2003 INTRODUCTION A donation has been received from Dakota Electric Association. DISCUSSION Dakota Electric Association has donated $150 to the Parks and Recreation Department for helping to cover the transportation costs of a swim bus. Staffwill communicate the City's appreciation on behalf of the City Council to Dakota Electric Association for their generous donation. ACTION REQUESTED Adopt the attached resolution accepting the donations of $150 for covering the transportation costs for a swim bus. Respectfully Submitted, 171\. 'r~ ~ ?V Missie Kohlbeck Senior Center Coordinator RESOLUTION No. ACCEPTING DONATION OF $150 FOR THE SWIM BUS Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota, was held in the Council Chambers of said City on the 19th day of May, 2003 at 7:00 p.m. Members Present: Members Absent: seconded the following: Member introduced and Member WHEREAS, Dakota Electric Association has donated $150 towards covering the transportation costs for a swim bus. WHEREAS, it is in the best interest of the City to accept such donations. NOW, THEREFORE, BE IT RESOLVED that the City of Farmington hereby accepts the generous donation of$150 from Dakota Electric Association to be used for covering the transportation costs for a Swim Bus. This resolution adopted by recorded vote of the Farmington City Council in open session on the 19th day of May 2003. Mayor Attested to the _ day of May 2003. City Administrator SEAL 7e City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us TO: Mayor, Councilmembers, City Administrator B. FROM: Missie Kohlbeck, Senior Center Coordinator SUBJECT: Adopt Resolution Accepting Donation for Safety Camp DATE: May 19,2003 INTRODUCTION A donation has been received from Dakota Electric Association. DISCUSSION Dakota Electric Association has donated $500 to the Parks and Recreation Department for Safety Camp. Staffwill communicate the City's appreciation on behalf of the City Council to Dakota Electric for their generous donation. ACTION REQUESTED Adopt the attached resolution accepting the donations of $500 for Safety Camp. Respectfully Submitted, ~~!l> Missie Kohlbeck Senior Center Coordinator RESOLUTION No. ACCEPTING DONATION OF $500 FOR SAFETY CAMP Pursuant to due call and notice thereof, a regular meeting ofthe City Council of the City of Farmington, Minnesota, was held in the Council Chambers of said City on the 19th day of May, 2003 at 7:00 p.m. Members Present: Members Absent: Member introduced and Member seconded the following: WHEREAS, Dakota Electric Association has donated $500 towards Safety Camp. WHEREAS, it is in the best interest ofthe City to accept such donations. NOW, THEREFORE, BE IT RESOLVED that the City of Farmington hereby accepts the generous donation of $500 from Dakota Electric Association to be used for Safety Camp. This resolution adopted by recorded vote of the Farmington City Council in open session on the 19th day of May 2003. Mayor Attested to the _ day of May 2003. City Administrator SEAL 7-[' City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us TO: Mayor, Councilmembers, City A~inistrator r:). FROM: Missie Kohlbeck, Senior Center Coordinator SUBJECT: Replace Lucille "Lucky" Lyle on the Senior Center Advisory Board DATE: May 19,2003 INTRODUCTION Lucille "Lucky" Lyle has been incapacitated due to an illness and cannot at this time continue to serve on our Advisory Board. DISCUSSION Gil Anderson, a former member of the Senior Center Advisory Board, has expressed an interest in temporarily replacing Lucky during her illness. ACTION REQUESTED Appoint Gil Anderson temporarily to the Senior Center Advisory Board in Lucky's absence. Respectfully Submitted, ~~K]) Missie Kohlbeck Senior Center Coordinator City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us ~ ~5. TO: Mayor, Councilmembers, City Administrator FROM: Lee M. Mann, P.E., Director of Public Works/City Engineer SUBJECT: Approve Change Order - 195th Street Project DATE: May 19,2003 INTRODUCTION Forwarded for Council's consideration is change order #3 for the 195th Street West Extension Project. DISCUSSION The change order includes additional traffic control and bond costs due to the additional work done to remove unsuitable soils on the project and minor overages in the wear course and pedestrian ramp quantities. BUDGET IMPACT The total amount for change order #3 is 9,211.09. The costs for the change order are within the project's budget. ACTION REOUESTED Approve change order # 3 for the 195th Street project in the amount of9,211.09. Respectfully Submitted, ~m~ Lee M. Mann, P.E., Director of Public Works/City Engineer cc: file ~ .11. Bonestroo ... Rosene .. Anderlik & ~1 Associates Engineers & Architects Owner: City of FanninlZton Date Mav 9, 2003 Contractor: Midstate Services, Inc. Bond Comoanv: American- Agency CHANGE ORDER NO.3 195th Street Improvements City of Farmington Project No. 01-16 BRA FILE NO. 141-01-156 Descriotion orWork This Change Order provides for additional project work as needed to complete the project. Contract Unit Total No. Item Unit Quantity Price Amount CHANGE ORDER NO.3 Extended Traffic Control LS S2,966.67 S2,966.67 2 Extended Project Bond LS SI,048.72 SI.048.72 3 Type MV Wearing Course Mixture TN 102 S32.85 S3,350.70 4 Pedestrian Curb Ramp SF 123 S15.00 SI.845.00 Total CHANGE ORDER NO.3: 59,211.09 Change Order #3.xls j / J :l Original Contract Amount revious Change Orders his Change Order Revised Contract Amount (including this change order) $657,829.28 $86,959.08 $9,211.09 $753,999.45 Recommended for Approval by: BONESTROO, ROSENE, ANDERLIK & ASSOCIATES, INC. ~p~ Date: ~/~3 Approved by Contractor: MIDSTATE SERVICES INC. Approved by Owner: CITY OF FARMINGTON Date Date cc: Owner Contractor Bonding Company Bonestroo & Assoc. Change Order #3.x1s City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us 7~ TO: Mayor, Councilmembers, City Administrator 'f,~ FROM: Lee M. Mann, P.E., Director of Public Works/City Engineer SUBJECT: Approve Traffic Control - School Speed Zones DATE: May 19, 2003 INTRODUCTION Staff has received requests for school speed zones on 208th Street by the Middle Schools, Maple Street by Farmington Elementary and Walnut Street by the District Service Center. DISCUSSION Earlier this spring, staff received requests to post school speed zones in the areas of the schools in Farmington. The City's traffic engineer reviewed this request and at this time recommends installation of school speed zones on 208th Street by the Middle Schools, Maple Street by Farmington Elementary and Walnut Street by the District Service Center. In addition, a letter has been received from the school district advocating the designation of such speed zones (attached). BUDGET IMPACT The cost ofthe signs needed to post school speed zones is covered in the 2003 budget. ACTION REOUESTED Approve the placement of school speed zones on 208th Street by the Middle Schools, Maple Street by Farmington Elementary and Walnut Street by the District Service Center. Respectfully Submitted, ~rn~ Lee M. Mann, P.E., Director of Public Works/City Engineer cc: file Farmington Independent School District 192 Excellence, Integrity, Innovation DOUGLAS BONAR DIRECTOR BUILDINGS & GROUNDS OFFICE 510 WALNUT STREET FARMINGTON, MN 55024-1389 PHONE: (651) 463-5062 FAX: (651) 463-5061 April 29, 2003 (;::::- 1/. \ r--'_ :..!\ l/'~ @:s-- J:" ,...:.] &----- ;./'1 ;' j~ r-.~:-:--. IIt.';i ~nnr::.--,-:'-.-"'o.' 1/ ' ,"" / -~ l!:.:~ '. /." ' .' ,." '..t ' // /1 i, !~i;qy . J if I II i ,n,'v.1J i...! . ,; . '-VI l.. '-~.~ ---- "-~-. ------ --- ----.i Mr. Lee Mann Director of Public Works-City Engineer City of Farmington 325 Oak Street Farmington, MN 55024 Dear Mr. Mann: Thank you for your call of April 7, 2003 and the inquiry with respect to speed zones along 20gth Street, Maple, and Walnut. After consultation with building and district administrators, I can state that all parties concerned advocate a reduction in speed and posting of a school speed zone when children are present. The creation of the trail system as part of the Akin Road improvements, public use oflarge fields near Farmington Middle School West and increased traffic due to school and community growth are all elements contributing towards an increased risk for student pedestrians. Please let me know if there is any other support or assistance we can provide in establishing safety zones near schools or safe routes of passage for students walking/bicycling to school. ~J) \ uglas L. Bonar, Director ldings & Grounds Dept. DLB/kjl cc: Supt.Ohl Roz Pautzke Jon Reid Steven Geis Steve Dibb ~ City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us TO: M C '1 b C' Ad . . ~S,.. ayor, ounCl mem ers, Ity mlntstrator FROM: Lisa Shadick, Administrative Services Director SUBJECT: Approve Therapeutic Massage License DATE: May 19,2003 INTRODUCTION Pursuant to City Ordinance 3-15-8, a public hearing must be held to issue a Therapeutic Massage License. DISCUSSION Sharon Munich has submitted an application for a Therapeutic Massage License. The business will be located at 18598 Elk River Trail, Suite 201. The required attachments, fees and insurance information have been submitted with the application. Police Chief Siebenaler has reviewed the forms and approved the applications. The application did not need to be reviewed by the Planning Commission, as the business will be located in a B-1 zoning district. BUDGET IMPACT The fees collected are as proposed in the revenue portion of the budget. ACTION REOUIRED Approve a Therapeutic Massage License for Sharon Munich, 18598 Elk River Trail. Respectfully submitted, ~d#a4 Lisa Shadick Administrative Services Director /Oa- CITY OF FARMINGTON SUMMARY OF REVENUES AS OF APRIL 30, 2003 33.33 % Year Complete $ $ % $ % GENERAL FUND Property Taxes 3,188,070 10,058 10,058 0.32 5,521 0.21 Licenses/Permits 1,033,700 83,236 515,311 49.85 331,143 28.45 Fines 82,500 8,869 16,689 20.23 22,669 27.48 Intergovemment Revenue 876,486 533 79,387 9.06 78,721 9.63 Charges for Service 329,779 24,985 51,800 15.71 51,024 15.89 Miscellaneous 330,500 21,025 84,143 25.46 100,000 30.26 Transfers 225 000 18500 74,000 32.89 114.893 33.35 Total General Fund 6 066 035 167 206 831.388 13.71 703.971 12.44 SPECIAL REVENUE HRA Operating Fund 27,000 289 5,004 18.53 6,240 25.74 Police Forfeitures Fund 8,050 673 2,933 36.43 1,600 19.88 Park Improvement Fund 152,500 2,395 24,637 16.16 8,902 2.28 Recreation Operating Fund 186,700 596 8,757 4.69 27,711 13.25 ENTERPRISE FUNDS Ice Arena 243,300 16,716 91,971 37.80 104,146 47.88 Liquor Operations 2,410,500 213,907 733,835 30.44 665,100 27.71 Sewer 1,298,000 14,693 310,516 23.92 440,018 28.47 Solid Waste 1,358,500 3,701 299,761 22.07 314,729 25.01 Storm Water 270,000 4,157 90,211 33.41 71,951 11.75 Water 1 790 000 42.017 385 261 21.52 423 009 24.03 Total Revenues 13810585 466 350 2784 274 20.16 2767.376 19.65 CITY OF FARMINGTON SUMMARY OF EXPENDITURES AS OF APRIL 30, 2003 iiiii.li.::.li:::..:.'.iii.liilllii:iiiiiii'i'lili'iii.i:i.i::i:::::::::I:j:iiii....ij.I'.:li:iiiiiiiiii::f::su....q:::::rlilll:iiiL:::::::::::mm.o::::::::::::\:::::::2,:.tI~i!:.:.::::::;::::iiliii.i:.:i!'!~~::.::::!:.!1.lli: GENERAL FUND $ $ $ % $ % Legislative 61,120 9,342 26,776 43.81 18,891 Administration 418,660 68,571 161,793 38.65 103,114 Human Resources 191,820 15,976 38,521 20.08 27,376 MIS 92,330 337 36,572 39.61 9,092 Elections 10,870 0.00 11 Communications 76,350 5,470 16,705 21.88 18,227 Finance 372,730 45,579 130,744 35.08 130,277 Planning/Zoning 155,360 21,096 45,769 29.46 45,806 Building Inspection 316,330 46,171 103,263 32.64 88,643 Community Development 87,350 13,138 32,797 37.55 23,978 Police Administration 456,300 49,901 192,754 42.24 105,081 Patrol Services 1,120,280 146,009 345,031 30.80 301,020 Investigation Services 171,980 26,603 56,601 32.91 23,614 School Liason Officer 80,830 12,607 28,605 35.39 23,868 Emergency Management 1,400 561 595 42.50 51 Fire 371,000 28,052 82,023 22.11 78,318 Rescue 47,690 9,383 15,464 32.43 9,196 Engineering 259,430 36,503 86,249 33.25 76,673 G.I.S. 12,820 26 2,973 23.19 84 Streets 419,200 60,369 114,173 27.24 83,579 Snow Removal 105,640 12,143 40,436 38.28 37,044 Signal Maint 95,600 222 23,367 24.44 22,570 Fleet Maint 0.00 35,906 Park Maint 244,162 42,992 103,807 42.52 73,737 Forestry 110,000 7,666 10,679 9.71 6,615 Building Maint 105,300 10,500 36,826 34.97 27,591 Recreation Programs 256,850 50,400 108,653 42.30 66,450 Outdoor Ice 27,640 59 3,763 13.61 5,116 Transfers Out 100000 0.00 26.69 29.12 21.10 16.02 0.05 27.50 34.34 32.77 32.67 27.73 26.94 31.33 15.67 35.59 3.64 23.46 24.49 31.32 0.81 22.72 43.58 26.37 30.42 35.80 6.43 26.15 23.26 19.77 0.00 Total General Fund 5 769 042 719 676 1 844 939 31.98 1441 928 27.28 SPECIAL REVENUE HRA Operating 88,840 16,118 31,964 35.98 1,696 3.25 Police Forfeitures Fund 8,050 1,587 19.71 1,866 23.18 Park Improvement Fund 134,500 7,913 5.88 30,444 26.07 Senior Center 108,020 16,819 40,711 37.69 4,478 4.12 Swimming Pool 124,560 3,906 6,580 5.28 0.00 ENTERPRISE FUNDS Ice Arena 273,900 31,260 87,579 31.97 95,358 40.11 Liquor Operations 2,247,750 256,046 743,065 33.06 666,845 30.29 Sewer 1 ,263,767 102,035 413,869 32.75 362,793 30.72 Solid Waste 1,363,631 79,350 359,973 26.40 329,436 27.10 Storm Water 242,939 15,220 52,031 21.42 61,958 26.10 Water Utility 1 104503 210 193 332411 30.10 249 482 16.53 Total Ex enditures 12,729,502 1,450,623 3,922,622 30.82 3,246,284 26.45 lOb City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.cLfarmington.mn.us TO: Mayor and City Council FROM: Ed Shukle, City Administrator SUBJECT: 2004 Budget Goals Workshop DATE: May 19, 2003 INTRODUCTION In preparing the 2003 Budget, we began the process with a Budget Goals workshop. This gave us an opportunity to discuss expenditure targets so that we could develop a budget that would continue to provide quality service to our residents at the least possible cost. It was held the first week of June, 2002. DISCUSSION I thought this was a worthwhile workshop and would recommend scheduling another one as we begin the 2004 Budget process. If you are in agreement, we would like to schedule the meeting for Wednesday, June 4, 6 p.m. We will plan to bring in dinner at that time as well. ACTION REQUESTED Set 2004 Budget Goals Workshop for Wednesday, June 4,6 p.m., City Council Chambers. TO: FROM: SUBJECT: DATE: INTRODUCTION IOe City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us ~\ "uPC Mayor, Council Members, City Administrator I Jim Atkinson Assistant City Planner Riverside West Preliminary and Final Plat May 19,2003 The applicants, Jack Benedict and Brian Budenski, are seeking approval of the Riverside West Preliminary and Final Plat. The plat consists of five (5) lots and an outlot on approximately 5.7 acres of land located at the northeast comer of Akin Road and 208th Street, west of Riverside Estates. BACKGROUND The Planning Commission reviewed the proposed plat at its meeting on April 8, 2003 and again on April 29, 2003. The Commission continued the Public Hearing to May 13 in order for the applicants to clarify their proposal regarding the existing cul-de-sac at the west end of 207th Street. The Planning Commission, at its meeting on May 13, 2003, voted 3-1 to recommend denial of the plat. The Commission was not comfortable with the proposed street design regarding the existing cul-de-sac, but did not indicate what alternative(s) would be acceptable. Details of the proposed plat are described later in this memo. Plannin2 Division Review Area Bounded By: Existing Zoning: Existing Conditions: Parkland and Trails: Agricultural land to the north, Akin Road to the west, Riverside Estates to the east, and 208th Street to the south. R-l - Single Family Residential District The property is currently vacant. Middle Creek crosses the northern portion of the property. Northern Natural Gas Company has a 100- foot wide easement along the east property line, and Northern States Power Company has an easement along the west side of the property. The parkland dedication requirement has been satisfied. DISCUSSION As shown on the attached plan, the applicants are proposing to create five (5) lots on the southern portion of the property. The actual building area of the properties would be limited due to the location of two (2) easements on the property. The remaining portion of the property would be platted as Outlot A in order to preserve the creek and natural areas on the north side of the creek. According to the City Code, the minimum required lot area in an R-l zoning district is 10,000 square feet and the minimum lot width is 75 feet. As shown on the attached plat, these requirements have been satisfied. 207th Street West As previously mentioned, the Planning Commission recommended denial of the plat due to the proposed configuration of the existing cul-de-sac. In total, the applicants have submitted three (3) designs, all of which meet City standards. The Planning Commission did not indicate which alternative(s) would be acceptable. Option number 3 listed below is the current proposal submitted by the applicants. Option 1 - The original proposal submitted by the applicants showed the existing cul-de-sac being removed and the roadway being straightened to align with the proposed 207th street extension. The result would be a typical street design culminating in a cul-de-sac at the west end of 207th Street. Engineering Staff collected elevation data for the existing cul- de-sac and the properties fronting the cul-de-sac to determine the impact on existing properties if the street were straightened. For this option to work, the property owners adjacent to the existing cul-de-sac would be impacted, some significantly, by the grading necessary on their property in order for drainage to work properly. Option 2 - In order to minimize the disruption to existing property owners, the applicant's second proposal included leaving the existing cul-de-sac in place and extending 207th Street from the west end of the cul-de-sac. An additional cul-de-sac would be created as shown on the plat, resulting in the existence of two cul-de-sacs on 207th Street in close proximity of each other. Engineering Staff has determined that leaving the existing cul- de-sac as it currently exists could work with minor modifications. Leaving the cul-de-sac as it currently exists would not result in a street design that is typical. In this case, however, due to the elevations of the existing cul-de-sac, the impact of removing the cul-de-sac would be significant. The potential disruption to the existing residents may warrant allowing a street design such as the one proposed in this option. It is always the City's goal to minimize the disruption to existing residents due to new development. Option 3 - The current version of the proposed plat included with this report differs slightly from the second option in that the right-of-way is shifted to the north approximately 15 feet. Option 2 would place a small portion of an existing lot in Riverside Estates in the right-of-way of the proposed street connection. Shifting the right-of-way to the north would eliminate the need for the applicant to acquire any property from an existing homeowner. Consistency with City Code Discussion arose at the meeting on April 29, 2003 regarding whether the proposed connection from the west side of the existing cul-de-sac is consistent with the City Code. The City Attorney recommended approval of the plat on the basis that the proposed configuration would not be in violation of the City Code and should not prevent the plat from moving forward if all zoning requirements have been satisfied. Details of the cul-de-sac design could be included in the list of engineering requirements that must be completed prior to construction of the project. Completion of engineering issues is typically included as a condition of approval when the plat is approved, and would be no different for this project. The recommended conditions listed below include this prOVISIOn. ACTION REQUESTED Approve the preliminary and final plat for Riverside West contingent upon the following conditions: . Execution of a Development Contract between the Developer and the City of Farmington and submission of security, payment of all fees and costs and submission of all other documents required under the Development Contract. . All engineering issues shall be corrected and approval of construction plans for grading, storm water, the existing cul-de-sac, and utilities by the Engineering Division must be granted. Respectfully submitted, q~~ Jim Atkinson Assistant City Planner Attachments: 1. Proposed Plat 2. Street Detail 3. Resolution RESOLUTION NO. APPROVING AND AUTHORIZING SIGNING OF FINAL PLAT RIVERSIDE WEST Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Farmington, Minnesota, was held in the Council Chambers of said City on the 19th day of May, 2003 at 7:00 P.M. Members Present: Members Absent: introduced and Member _ seconded the following: Member WHEREAS, an application meeting City requirements has been filed seeking final plat review and approval of Riverside West; and WHEREAS, the Planning Commission held a public hearing for the preliminary plat on the 8th day of April, 2003, preceded by 10 days' published and mailed notice, at which all persons desiring to be heard were given the opportunity to be heard thereon; and WHEREAS, the City Council reviewed the final plat on May 19,2003; and WHEREAS, the City Engineer has rendered an opinion that the proposed plat can be feasibly served by municipal service. 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 with the following conditions: . Execution of a Development Contract between the Developer and the City of Farmington and submission of security, payment of all fees and costs and submission of all other documents required under the Development Contract. . All engineering issues shall be corrected and approval of construction plans for grading, storm water, the existing cul-de-sac, and utilities by the Engineering Division must be granted. This resolution adopted by recorded vote of the Farmington City Council in open session on the 19th day of May, 2003. Mayor Attested to the _ day of ,2003. City Administrator I t ~ e illlif a ~"U ~-f!t15 ii~~i! ~ U!.f' (-... 9 r ~t .. a'41~f ~" ="; "'" "5.!l~ 1";:; 18 pi -: " l ~ 8 l--~ l il g~'g ::: Cl.t:;9-~ .." ~ () !;~~ :I: .: t:J'41:>j ~,. ~ b'~~..; ~th.. 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I". 1 ~;~~ I' , I (:') !,,'o ~ k, ) ~ \ \ ,::0 / ~ Ji,').; h \ i ',-" ,. 1... \1 (,j / ~ 1 I i ~ ~ C) ,<-.0 11 V) \ \ \ fv<; \ ,., \, \ ~ 111 Ul -".'"1 ',J <:> I-~~ I~-- ,--, (:11 I I 1.'> II:j i 1'1 v') l'"J~'" II <~1~ C~::Jlti II f'1 ,41,_ ';I1:z -',1['1 I : ~ _..; C)..... I 'J I r- I L _' , J ()J /' \ i i t ()'! [., '-,j; A r'ji,XI ~':;'~I ?~~,i >,0"" rq (~:).h1 r:'i r: \1 ,.;, (J c..u a ~ Ii' -Ii (m If I I;) 5~ ~ I ~ ~~ "":lDJ s t>:J I ~ City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us TO: Mayor & Councilmembers FROM: Ed Shukle, City Administrator SUBJECT: Supplemental Agenda DATE: May 19,2003 It is requested that the May 19, 2003 agenda be amended as follows: NEW BUSINESS 12 (a) Adopt Resolution - Sale of $3,740,000 General Obligation Improvement Bonds, Series 2003 A - Finance Legg, Mason, Wood, Walker was the low bidder at an interest rate of 3.32%, making the interest cost over 15 years $1,175,773. This is $406,186 less than originally anticipated. Io?a.... City of Farmington 325 Oak Street, Farmington, MN 55024 (651) 463-7111 Fax (651) 463-2591 www.ci.farmington.mn.us TO: Mayor, Council Members, City Administrator~~' FROM: Robin Roland, Finance Director SUBJECT: Adopt Resolution -Sale of $3,740,000 G.O. Improvement Bonds Series 2003A - Finance DATE: May 19, 2003 INTRODUCTION The City Council, at their meeting April 21, 2003 authorized the sale of General Obligation Improvement Bonds of2003A to fund the Main Street construction project. DISCUSSION Competitive bids for the bonds were received today in the offices of Ehlers & Associates, Inc. Preliminary estimates anticipated an interest rate of 4.32% with an anticipated total interest cost over 15 years of$I,581,959. The City received 8 bids. Legg, Mason, Wood, Walker was the low bidder at an interest rate of 3.32%, making the interest cost over 15 years $1,175,773 - $406,186 less than originally anticipated. BUDGET IMPACT Analysis of the bids will be presented at the meeting. ACTION REQUIRED Approve the attached resolution awarding the sale of the $3,740,000 G.O. Improvement Bonds of 2003A to Legg, Mason, Wood, Walker. Respectfully submitted, A/~ . RobmR~---1 .. Finance Director CERTIFICATION OF MINUTES RELATING TO $3,740,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2003A Issuer: City of Farmington, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting held May 19,2003, at 7:00 o'clock p.m., at the municipal offices in Farmington, Minnesota. Members present: Members absent: Documents Attached: Minutes of said meeting (including): RESOLUTION NO. RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $3,740,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2003A I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the bonds referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said bonds; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this 19th day of May, 2003. City Administrator It was reported that _ sealed proposals for the purchase of $3,740,000 General Obligation Improvement Bonds, Series 2003A were received prior to 12:00 o'clock noon, pursuant to the Official Statement distributed to potential purchasers ofthe Bonds by Ehlers & Associates, Inc., independent financial consultant to the City. The proposals have been publicly opened, read and tabulated and were found to be as follows: (See Attached) Councilmember introduced the following resolution and moved its adoption, which motion was seconded by Councilmember RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $3,740,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2003A BE IT RESOLVED by the City Council of the City of Farmington, Minnesota (the City), as follows: SECTION 1. AUTHORIZATION AND SALE. 1.01. Authorization. The City Council hereby determines that it is in the best interest of the City to issue its General Obligation In1provement Bonds, Series 2003A (the Bonds), in the principal amount of $3,740,000, subject to adjustment in accordance with the Terms of Proposal. The proceeds of the Bonds shall be use to finance various public improvements including the reconstruction ofthe street and lateral utilities which include the non-trunk sanitary sewer, storm sewer and water main. 1.02. Sale. Pursuant to the Terms of Proposal and the Official Statement prepared on behalf ofthe City by Ehlers & Associates, Inc., sealed proposals for the purchase of the Bonds were received at or before the time specified for receipt of proposals. The proposals have been opened, publicly read and considered and the purchase price, interest rates and net interest cost under the terms of each proposal have been determined. The most favorable proposal received is that of 10 , , and associates (the Purchaser), to purchase the Bonds at a price of $ plus accrued interest on all Bonds to the day of delivery and payment, on the further terms and conditions hereinafter set forth. 1.03. Award. The sale ofthe Bonds is hereby awarded to the Purchaser and the Mayor and City Administrator are hereby authorized and directed to execute a contract on behalf of the City for the sale of the Bonds in accordance with the terms of the proposal. The good faith deposit of the Purchaser shall be retained and deposited by the City until the Bonds have been delivered, and shall be deducted from the purchase price paid at settlement. SECTION 2. BOND TERMS; REGISTRATION; EXECUTION AND DELIVERY. 2.01. Issuance of Bonds. All acts, conditions and things which are required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the valid issuance of the Bonds having been done, now existing, having happened and having been performed, it is now necessary for the City Council to establish the form and terms ofthe Bonds, to provide security therefor and to issue the Bonds forthwith. 2.02. Maturities: Interest Rates: Denominations and Pavrnent. The Bonds shall be originally dated as of June 1,2003, shall be in the denomination of $5,000 each, or any integral multiple thereof, of single maturities, shall mature on February 1 in the years and amounts stated below, and shall bear interest from date of issue until paid or duly called for redemption at the annual rates set forth opposite such years and amounts, as follows: Year Amount Rate Year Amount Rate 2006 $215,000 % 2013 $265,000 % 2007 215,000 2014 275,000 2008 225,000 2015 290,000 2009 230,000 2016 300,000 2010 235,000 2017 315,000 2011 245,000 2018 330,000 2012 255,000 2019 345,000 [REVISE MATURITY SCHEDULE FOR ANY TERM BONDS] The Bonds shall be issuable only in fully registered form. Interest shall be computed on the basis of a 360 day year composed of twelve 30 day months. The interest on and, upon surrender of each Bond, the principal amount thereof, shall be payable by check or draft issued by the Registrar described herein; provided that, so long as the Bonds are registered in the name of a securities depository, or a nominee thereof, in accordance with Section 2.08 hereof, principal and interest shall be payable in accordance with the operational arrangements of the securities depository. 2.03. Dates and Interest Pavrnent Dates. Upon initial delivery of the Bonds pursuant to Section 2.07 and upon any subsequent transfer or exchange pursuant to Section 2.06, the date of authentication shall be noted on each Bond so delivered, exchanged or transferred. Interest on the Bonds shall be payable on February 1 and August 1 in each year, commencing February 1, 2004, each such date being referred to herein as an Interest Payment Date, to the persons in whose names the Bonds are registered on the Bond Register, as hereinafter defined, at the Registrar's close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date, whether or not such day is a business day. 2.04. Redemption. Bonds maturing in 2012 and later years shall be subject to redemption and prepayment at the option ofthe City, in whole or in part, in such order of maturity dates as the City may select and, within a maturity, by lot as selected by the Registrar (or, if applicable, by the bond depository in accordance with its customary procedures) in multiples of $5,000, on February 1, 2011, and on any date thereafter, at a price equal to the principal amount thereof and accrued interest to the date of redemption. The City Administrator shall cause notice of the call for redemption thereofto be published as required by law, and at least thirty days prior to the designated redemption date, shall cause notice of call for redemption to be mailed, by first class mail, to the registered holders of any Bonds to be redeemed at their addresses as they appear on the bond register described in Section 2.06 hereof, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the 2 redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified and from and after such date (unless the City shall default in the payment ofthe redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the owner without charge, representing the remaining principal amount outstanding. [COMPLETE THE FOLLOWING PROVISIONS IF THERE ARE TERM BONDS- ADD ADDITIONAL PROVISIONS IF THERE ARE MORE THAN TWO TERM BONDS] [Bonds maturing on February 1,20_ and 20_ (the Term Bonds) shall be subject to mandatory redemption prior to maturity pursuant to the sinking fund requirements of this Section 2.04 at a redemption price equal to the stated principal amount thereofplus interest accrued thereon to the redemption date, without premium. The Registrar shall select for redemption, by lot or other manner deemed fair, on February 1 in each ofthe following years the following stated principal amounts of such Bonds: Year Principal Amount The remaining $ stated principal amount of such Bonds shall be paid at maturity on February 1,20 . Year Principal Amount The remaining $ stated principal amount of such Bonds shall be paid at maturity on February 1, 20_. Notice of redemption shall be given as provided in the preceding paragraph.] 2.05. Appointment of Initial Registrar. The City hereby appoints U.S. Bank National Association in St. Paul, Minnesota, as the initial bond registrar, transfer agent and paying agent (the Registrar). The Mayor and City Administrator are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust company organized under the laws ofthe United States or one of the states of the United States and authorized by law to conduct such business, such corporation shall be authorized to act as successor Registrar. The City agrees to pay the reasonable and customary charges ofthe Registrar for the services 3 performed. The City reserves the right to remove the Registrar, effective upon not less than thirty days' written notice and upon the appointment and acceptance of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar and shall deliver the Bond Register to the successor Registrar. 2.06. Registration. The effect of registration and the rights and duties ofthe City and the Registrar with respect thereto shall be as follows: (a) Register. The Registrar shall keep at its principal corporate trust office a register (the Bond Register) in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. The term Holder or Bondholder as used herein shall mean the person (whether a natural person, corporation, association, partnership, trust, governmental unit, or other legal entity) in whose name a Bond is registered in the Bond Register. (b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name ofthe designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Bonds. Whenever any Bonds are surrendered by the registered owner for exchange the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. All Bonds surrendered for payment, transfer or exchange shall be promptly canceled by the Registrar and thereafter disposed of. The Registrar shall furnish the City at least once each year a certificate setting forth the principal amounts and numbers of Bonds canceled and destroyed. (e) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed Owners. The City and the Registrar may treat the person in whose name any Bond is at any time registered in the bond register as the absolute owner of the Bond, whether the Bond shall be overdue or not, for the purpose of receiving 4 payment of or on account of, the principal of and interest on the Bond and for all other purposes; and all payments made to any registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability upon Bond to the extent of the sum or sums so paid. (g) Taxes. Fees and Charges. For every transfer or exchange of Bonds (except for an exchange upon a partial redemption of a Bond), the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) Mutilated. Lost. Stolen or Destroved Bonds. In case any Bond shall become mutilated or be destroyed, stolen or lost, the Registrar shall deliver a new Bond oflike amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any Bond destroyed, stolen or lost, upon the payment ofthe reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the City and the Registrar shall be named as obligees. All Bonds so surrendered to the Registrar shall be canceled by it and evidence of such cancellation shall be given to the City. Ifthe mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it shall not be necessary to issue a new Bond prior to payment. (i) Authenticating Agent. The Registrar is hereby designated authenticating agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55, Subdivision 1, as amended. G) Valid Obligations. All Bonds issued upon any transfer or exchange of Bonds shall be the valid obligations of the City, evidencing the same debt, and entitled to the same benefits under this Resolution as the Bonds surrendered upon such transfer or exchange. 2.07. Execution. Authentication and Delivery. The Bonds shall be prepared under the direction of the City Administrator and shall be executed on behalf ofthe City by the signatures of the Mayor and the City Administrator, provided that the signatures may be printed, engraved or lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as ifhe had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on each Bond shall be conclusive evidence that it has been 5 authenticated and delivered under this resolution. When the Bonds have been prepared, executed and authenticated, the City Administrator shall deliver them to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore executed, and the Purchaser shall not be obligated to see to the application ofthe purchase price. 2.08. Securities Deoositorv. (a) For purposes ofthis section the following terms shall have the following meanings: "Beneficial Owner" shall mean, whenever used with respect to a Bond, the person in whose name such Bond is recorded as the beneficial owner of such Bond by a Participant on the records of such Participant, or such person's subrogee. "Cede & Co." shall mean Cede & Co., the nominee ofDTC, and any successor nominee ofDTC with respect to the Bonds. "DTC" shall mean The Depository Trust Company of New York, New York. "Participant" shall mean any broker-dealer, bank or other financial institution for which DTC holds Bonds as securities depository. "Representation Letter" shall mean the Representation Letter pursuant to which the City agrees to comply with DTC's Operational Arrangements. (b) The Bonds shall be initially issued as separately authenticated fully registered bonds, and one Bond shall be issued in the principal amount of each stated maturity ofthe Bonds. Upon initial issuance, the ownership of such Bonds shall be registered in the bond register in the name of Cede & Co., as nominee ofDTC. The Registrar and the City may treat DTC (or its nominee) as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment of the principal of or interest on the Bonds, selecting the Bonds or portions thereof to be redeemed, if any, giving any notice permitted or required to be given to registered owners of Bonds under this resolution, registering the transfer of Bonds, and for all other purposes whatsoever; and neither the Registrar nor the City shall be affected by any notice to the contrary. Neither the Registrar nor the City shall have any responsibility or obligation to any Participant, any person claiming a beneficial ownership interest in the Bonds under or through DTC or any Participant, or any other person which is not shown on the bond register as being a registered owner of any Bonds, with respect to the accuracy of any records maintained by DTC or any Participant, with respect to the payment by DTC or any Participant of any amount with respect to the principal of or interest on the Bonds, with respect to any notice which is permitted or required to be given to owners of Bonds under this resolution, with respect to the selection by DTC or any Participant of any person to receive payment in the event of a partial redemption of the Bonds, or with respect to any consent given or other action taken by DTC as registered owner of the Bonds. So long as any Bond is registered in the name of Cede & Co., as nominee ofDTC, the Registrar shall pay all principal of and interest on such Bond, and shall give all notices with respect to such Bond, only to Cede & Co. in accordance with DTC's Operational Arrangements, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and interest on the Bonds to the extent ofthe sum or 6 sums so paid. No person other than DTC shall receive an authenticated Bond for each separate stated maturity evidencing the obligation of the City to make payments of principal and interest. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the Bonds will be transferable to such new nominee in accordance with paragraph (e) hereof. (c) In the event the City determines that it is in the best interest of the Beneficial Owners that they be able to obtain Bonds in the form of bond certificates, the City may notify DTC and the Registrar, whereupon DTC shall notify the Participants of the availability through DTC of Bonds in the form of certificates. In such event, the Bonds will be transferable in accordance with paragraph (e) hereof. DTC may determine to discontinue providing its services with respect to the Bonds at any time by giving notice to the City and the Registrar and discharging its responsibilities with respect thereto under applicable law. In such event the Bonds will be transferable in accordance with paragraph (e) hereof. (d) The execution and delivery of the Representation Letter to DTC by the Mayor or City Administrator is hereby authorized and directed. (e) In the event that any transfer or exchange of Bonds is permitted under paragraph (b) or (c) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of the Bonds to be transferred or exchanged and appropriate instrunlents of transfer to the permitted transferee in accordance with the provisions of this resolution. In the event Bonds in the form of certificates are issued to owners other than Cede & Co., its successor as nominee for DTC as owner of all the Bonds, or another securities depository as owner of all the Bonds, the provisions of this resolution shall also apply to all matters relating thereto, including, without limitation, the printing of such Bonds in the form of bond certificates and the method of payment of principal of and interest on such Bonds in the form of bond certificates. 2.09. Form of Bonds. The Bonds shall be prepared in substantially the following form: [The remainder of this page is intentionally left blank.] 7 UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF DAKOTA CITY OF FARMINGTON GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 2003A Maturitv Date Date of Original Issue CUSIP No. Interest Rate % February 1,20_ June 1, 2003 311297 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: THOUSAND DOLLARS THE CITY OF FARMINGTON, COUNTY OF DAKOTA, STATE OF MINNESOTA (the City), acknowledges itselfto be indebted and hereby promises to pay to the registered owner named above, or registered assigns, the principal amount specified above on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable on February 1 and August 1 in each year, commencing February 1, 2004, to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether or not a business day) ofthe immediately preceding month, all subject to the provisions referred to herein with respect to the redemption of the principal ofthis Bond before maturity. Interest hereon shall be computed on the basis of a 360-day year composed of twelve 30-day months. The interest hereon and, upon presentation and surrender hereof at the principal office of the agent of the Registrar described below, the principal hereof are payable in lawful money of the United States of America by check or draft drawn on U.S. Bank National Association, as bond registrar, transfer agent and paying agent, or its successor designated under the Resolution described herein (the Registrar), or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged. This Bond is one of an issue (the Bonds) in the aggregate principal amount of $3,740,000, issued pursuant to a resolution adopted by the City Council on May 19, 2003 (the Resolution) to finance the costs of various public improvements, and is issued pursuant to and in full conformity with the Constitution and laws ofthe State of Minnesota thereunto enabling, including Minnesota Statutes, Chapters 429 and 475. The Bonds are issuable only in fully registered form, in denominations of $5,000 or any integral multiple thereof, of single maturities. Bonds maturing in 2012 and later years are each subject to redemption and prepayment at the option of the City, in whole or in part, in such order of maturity dates as the City may select and, within a maturity, by lot as selected by the Registrar (or, if applicable, by the bond depository in accordance with its customary procedures) in multiples of $5,000 on February 1, 2011, and on any date thereafter, at a price equal to the principal amount thereof plus interest 8 accrued to the date of redemption. The City will cause notice ofthe call for redemption to be published as required by law and, at least thirty days prior to the designated redemption date, will cause notice of the call thereofto be mailed by first class mail to the registered owner of any Bond to be redeemed at the owner's address as it appears on the bond register maintained by the Registrar, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. [COMPLETE THE FOLLOWING PROVISIONS IF THERE ARE TERM BONDS- ADD ADDITIONAL PROVISIONS IF THERE ARE MORE THAN TWO TERM BONDS] [Bonds maturing in the year 20_ and 20_ shall be subject to mandatory redemption, at a redemption price equal to their principal amount plus interest accrued thereon to the redemption date, without premium, on February 1 in each ofthe years shown below, in an amount equal to the following principal amounts: Term Bonds Maturing in 20-- Term Bonds Maturing in 20-- Sinking Fund Pavrnent Date Aggregate Principal Amount Sinking Fund Pavrnent Date Aggregate Principal Amount $ $ Notice of redemption shall be given as provided in the preceding paragraph.] As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The Bonds have been designated by the City as "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986. 9 The City and the Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Registrar shall be affected by any notice to the contrary. Notwithstanding any other provisions ofthis Bond, so long as this Bond is registered in the name of Cede & Co., as nominee of The Depository Trust Company, or in the name of any other nominee of The Depository Trust Company or other securities depository, the Registrar shall pay all principal of and interest on this Bond, and shall give all notices with respect to this Bond, only to Cede & Co. or other nominee in accordance with the operational arrangements of The Depository Trust Company or other securities depository as agreed to by the City. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws ofthe State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance ofthis Bond in order to make it a valid and binding general obligation of the City in accordance with its terms, have been done, do exist, have happened and have been performed as so required; that, prior to the issuance hereof, the City Council has by the Resolution covenanted and agreed to levy special assessments upon property specially benefited by the local improvements financed by the Bonds, which special assessments will be collectible for the years and in amounts sufficient to produce sums not less than five percent in excess of the principal of and interest on the Bonds when due, and has appropriated the special assessments to its General Obligation Improvement Bonds, Series 2003A Bond Fund for the payment of principal and interest; that if necessary for payment of principal and interest, ad valorem taxes are required to be levied upon all taxable property in the City, without limitation as to rate or amount; that the issuance ofthis Bond, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness ofthe City to exceed any constitutional or statutory limitation of indebtedness; and that the opinion printed hereon is a full, true and correct copy of the legal opinion given by Bond Counsel with reference to the Bonds, dated as of the date of original delivery ofthe Bonds. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Farmington, County of Dakota, State of Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the facsimile signatures of the Mayor and City Administrator and has caused this Bond to be dated as of the date set forth below. CITY OF FARMINGTON, MINNESOTA (facsimile signature - City Administrator) (facsimile signature - Mayor) 10 CERTIFICATE OF AUTHENTICATION This is one ofthe Bonds delivered pursuant to the Resolution mentioned within. Date of Authentication: U.S. BANK NATIONAL ASSOCIATION, as Registrar By Authorized Representative [insert legal opinion] The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to the applicable laws or regulations: TEN COM - as tenants in common UTMA ................... as Custodian for...... ............... (Cust) (Minor) under Uniform Transfers to Minors Act... . .. . .. . .... (State) TEN ENT - as tenants by the entireties JT TEN -- as joint tenants with right of survivorship and not as tenants in common Additional abbreviations may also be used. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitution in the premises. Dated: NOTICE: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatsoever. Signature Guaranteed: Signature(s) must be guaranteed by an "eligible guarantor institution" meeting the requirements of the Registrar, which requirements include membership or participation in STAMP or such other "signature guaranty program" as may be determined by the Registrar in addition to or in substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 11 PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE: [end of bond form] SECTION 3. GENERAL OBLIGATION IMPROVEMENT BONDS. SERIES 2003A CONSTRUCTION FUND. There is hereby established on the official books and records of the City a General Obligation Improvement Bonds, Series 2003A Construction Fund (the Construction Fund). The Finance Director shall continue to maintain the Construction Fund until payment of all costs and expenses incurred in connection with the construction of the Projects have been paid. To the Construction Fund there shall be credited from the proceeds of the Bonds, exclusive of unused discount and capitalized and accrued interest, an amount equal to the estimated cost of the Projects and from the Construction Fund there shall be paid all construction costs and expenses incurred by the City in construction of the Projects. There shall also be credited to the Construction Fund all special assessments collected with respect to the Projects until all costs of the Projects have been fully paid. After payment of all construction costs, the Construction Fund shall be discontinued and any Bond proceeds remaining therein may be transferred to the other funds or accounts established for construction of other improvements instituted pursuant to Minnesota Statutes, Chapter 429. All special assessments on hand in the Construction Fund when terminated or thereafter received, and any Bond proceeds not so transferred, shall be credited to the General Obligation Improvement Bonds, Series 2003A Bond Fund of the City. SECTION 4. GENERAL OBLIGATION IMPROVEMENT BONDS. SERIES 2003A BOND FUND. So long as any ofthe Bonds are outstanding and any principal of or interest thereon unpaid, the Finance Director shall maintain a separate debt service fund on the official books and records of the City to be known as the General Obligation Improvement Bonds, Series 2003A Bond Fund (the Bond Fund), and the principal of and interest on the Bonds shall be payable from the Bond Fund. The City irrevocably appropriates to the Bond Fund (a) any amount in excess of$3,695,120 received from the Purchaser; (b) capitalized interest in the amount of $ ; (c) the amounts specified in Section 3 above, after payment of all costs of the Projects; (d) all taxes and special assessments levied and collected in accordance with this resolution; and (e) all other moneys as shall be appropriated by the City Council to the Bond Fund from time to time. There are hereby established two accounts in the Bond Fund, designated as the "Debt Service Account" and the "Surplus Account." There shall initially be deposited into the Debt Service Account upon the issuance of the Bonds the amount set forth in (a) above. Thereafter, during each Bond Year (i.e., each twelve month period commencing on February 2 and ending on the following February 1), as monies are received into the Bond Fund, the Finance Director shall first deposit such monies into the Debt Service Account until an amount has been appropriated thereto sufficient to pay all principal and interest due on the Bonds through the end of the Bond Year. All subsequent monies received in the Bond Fund during the Bond Year shall be appropriated to the Surplus Account. If at any time the amount on hand in the Debt Service Account is insufficient for the payment of principal and interest then due, the Finance Director shall transfer to the Debt Service Account amounts on hand in the Surplus Account to the extent 12 necessary to cure such deficiency. Investment earnings (and losses) on amounts from time to time held in the Debt Service Account and Surplus Account shall be credited or charged to said accounts. If the aggregate balance in the Bond Fund is at any time insufficient to pay all interest and principal then due on all Bonds payable therefrom, the payment shall be made from any fund of the City which is available for that purpose, subject to reimbursement from the Surplus Account in the Bond Fund when the balance therein is sufficient, and the City Council covenants and agrees that it will each year levy a sufficient amount of ad valorem taxes to take care of any accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory limitation. SECTION 5. SPECIAL ASSESSMENTS. The City hereby covenants and agrees that, for the payment of the cost of the Projects, the City has done or will do and perform all acts and things necessary for the final and valid levy of special assessments in an amount not less than 20% of the cost of each ofthe improvements financed by the Bonds. The City estimates it will levy special assessments in the aggregate principal amount of $ . It is estimated that the principal and interest on such special assessments will be levied and collected in the years and amounts shown on Appendix I attached hereto. In the event any such assessment shall at any time be held invalid with respect to any lot or tract of land, due to any error, defect or irregularity in any action or proceeding taken or to be taken by the City or by the City Councilor by any of the officers or employees of the City, either in the making of such assessment or in the performance of any condition precedent thereto, the City hereby covenants and agrees that it will forthwith do all such further things and take all such further proceedings as shall be required by law to make such assessment a valid and binding lien upon said property. SECTION 6. PLEDGE OF TAXING POWERS. For the prompt and full payment of the principal of and interest on the Bonds as such payments respectively become due, the full faith, credit and unlimited taxing powers of the City shall be and are hereby irrevocably pledged. To provide moneys for the payment of principal of and interest on the Bonds as required by Minnesota Statutes, Section 475.61, subdivision 1, there is hereby levied on all of taxable property in the City a direct, annual ad valorem tax which shall be spread upon the tax rolls for collection in the years and amounts as follows, as a part of other general taxes of the City, as follows: Collection Years Amount Levy Years See Attached Levy Computation SECTION 7. DEFEASANCE. When all ofthe Bonds have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the registered owners of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued from the due date to the date of such deposit. The City may 13 also discharge its obligations with respect to any prepayable Bonds called for redemption on any date when they are prepayable according to their terms, by depositing with the Registrar on or before that date an amount equal to the principal, interest and redemption premium, if any, which are then due, provided that notice of such redemption has been duly given as provided herein. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or securities which are authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing or callable at the holder's option on such dates as shall be required to pay all principal and interest to become due thereon to maturity or earlier designated redemption date. Provided, however, that if such deposit is made more than ninety days before the maturity date or specified redemption date of the Bonds to be discharged, the City shall have received a written opinion of Bond Counsel to the effect that such deposit does not adversely affect the exemption of interest on any Bonds from federal income taxation and a written report of an accountant or investment banking firm verifying that the deposit is sufficient to pay when due all of the principal and interest on the Bonds to be discharged on and before their maturity dates or earlier designated redemption date. SECTION 8. CERTIFICATION OF PROCEEDINGS. 8.01. Registration of Bonds. The City Administrator is hereby authorized and directed to file a certified copy of this resolution with the County Auditor of Dakota County and obtain a certificate that the Bonds have been duly entered upon the Auditor's bond register. 8.02. Authentication of Transcript. The officers of the City and the County Auditor are hereby authorized and directed to prepare and furnish to the Purchaser and to Dorsey & Whitney LLP, Bond Counsel, certified copies of all proceedings and records relating to the Bonds and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the Bonds, as the same appear from the books and records in their custody and control or as otherwise known to them, and all such certified copies, affidavits and certificates, including any heretofore furnished, shall be deemed representations ofthe City as to the correctness of all statements contained therein. 8.03. Official Statement. The Official Statement relating to the Bonds, dated May 8, 2003, and the supplement thereto, relating to the Bonds prepared and distributed by Ehlers & Associates, Inc. is hereby approved. Ehlers & Associates, Inc., is hereby authorized on behalf of the City to prepare and distribute to the Purchaser within seven business days from the date hereof, a supplement to the Official Statement listing the offering price, the interest rates, selling compensation, delivery date, the underwriters and such other information relating to the Bonds required to be included in the Official Statement by Rule 15c2-12 adopted by the Securities and Exchange Commission (the SEC) under the Securities Exchange Act of 1934. The officers of the City are hereby authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency of the Official Statement. 8.04. Authorization ofPavment of Certain Costs oflssuance ofthe Certificates. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment 14 of issuance expenses to U.S. Trust Company, Minneapolis, Minnesota, on the closing date for further distribution as directed by the City's financial advisor, Ehlers & Associates, Inc. SECTION 9. T AX COVENANTS~ ARBITRAGE MATTERS~ REIMBURSEMENT AND CONTINUING DISCLOSURE. 9.01. General Tax Covenant. The City covenants and agrees with the registered owners of the Bonds that it will not take, or permit to be taken by any of its officers, employees or agents, any actions that would cause interest on the Bonds to become includable in gross income of the recipient under the Internal Revenue Code of 1986, as amended (the Code) and applicable Treasury Regulations (the Regulations), and covenants to take any and all actions within its powers to ensure that the interest on the Bonds will not become includable in gross income of the recipient under the Code and the Regulations. In particular, the City covenants and agrees that all proceeds of the Bonds deposited in the Construction Fund will be expended solely for the payment of the costs of the Projects (or other improvements authorized pursuant to Chapter 429). All improvements so financed will be owned and maintained by the City as part of the public infrastructure of the City and available for use by members of the general public on a substantially equal basis. The City shall not enter into any lease, management, use or other agreement or contract with any non-governmental person relating to the use of the Projects or security for the payment of the Bonds which might cause the Bonds to be considered "private activity bonds" or "private loan bonds" pursuant to Section 141 of the Code. 9.02. Arbitrage Certification. The Mayor and City Administrator being the officers of the City charged with the responsibility for issuing the Bonds pursuant to this resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with Section 148 of the Code, and applicable Regulations, stating the facts, estimates and circumstances in existence on the date of issue and delivery ofthe Bonds which make it reasonable to expect that the proceeds ofthe Bonds will not be used in a manner that would cause the Bonds to be "arbitrage bonds" within the meaning ofthe Code and Regulations. 9.03. Arbitrage Rebate Exemption. (a) It is hereby found that the City has general taxing powers, that no Bond is a "private activity bond" within the meaning of Section 141 of the Code, that 95% or more of the net proceeds of the Bonds are to be used for local governmental activities of the City, and that the aggregate face amount of all tax-exempt obligations (other than private activity bonds) issued by the City and all subordinate entities thereof during the year 2003 is not reasonably expected to exceed $5,000,000. Therefore, pursuant to Section 148(f)(4)(D) ofthe Code, the City shall not be required to comply with the arbitrage rebate requirements of paragraphs (2) and (3) of Section 148(f) of the Code. (b) Notwithstanding the provisions of paragraph (a) of this Section 9.03, ifthe arbitrage rebate provisions of Section 148(f) of the Code apply to the Bonds, the City hereby covenants and agrees to make the determinations, retain records and rebate to the United States the amounts at the times and in the manner required by said Section 148(f) and applicable Regulations. 9.04. Oualified Tax-Exempt Obligations. The City Council hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b )(3) of the Code relating to 15 the disallowance of interest expense for financial institutions, and hereby finds that the reasonably anticipated amount of qualified tax-exempt obligations (within the meaning of Section 265(b)(3) of the Code) which will be issued by the City and all subordinate entities during calendar year 2003 does not exceed $10,000,000. 9.05. Reimbursement. The City certifies that the proceeds of the Bonds will not be used by the City to reimburse itself for any expenditure with respect to the Projects which the City paid or will have paid more than 60 days prior to the issuance ofthe Bonds unless, with respect to such prior expenditures, the City shall have made a declaration of official intent which complies with the provisions of Section 1.150-2 of the Regulations; provided that this certification shall not apply (i) with respect to certain de minimis expenditures, if any, with respect to the Projects meeting the requirements of Section 1. 150-2(f)(1) of the Regulations, or (ii) with respect to "preliminary expenditures" for the Projects as defined in Section 1.150-2(f)(2) of the Regulations, including engineering or architectural expenses and similar preparatory expenses, which in the aggregate do not exceed 20% ofthe "issue price" of the Bonds. 9.06. Continuing Disclosure. (a) Purpose and Beneficiaries. To provide for the public availability of certain information relating to the Bonds and the security therefor and to permit the Purchaser and other participating underwriters in the primary offering of the Bonds to comply with amendments to Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934 (17 C.F.R. ~ 240.15c2-12), relating to continuing disclosure (as in effect and interpreted from time to time, the Rule), which will enhance the marketability of the Bonds, the City hereby makes the following covenants and agreements for the benefit ofthe Owners (as hereinafter defined) from time to time of the Outstanding Bonds. The City is the only obligated person in respect of the Bonds within the meaning of the Rule for purposes of identifying the entities in respect of which continuing disclosure must be made. The City has complied in all material respects with any undertaking previously entered into by it under the Rule. If the City fails to comply with any provisions ofthis section, any person aggrieved thereby, including the Owners of any Outstanding Bonds, may take whatever action at law or in equity may appear necessary or appropriate to enforce performance and observance of any agreement or covenant contained in this section, including an action for a writ of mandamus or specific performance. Direct, indirect, consequential and punitive damages shall not be recoverable for any default hereunder to the extent permitted by law. Notwithstanding anything to the contrary contained herein, in no event shall a default under this section constitute a default under the Bonds or under any other provision of this resolution. As used in this section, Owner or Bondowner means, in respect of a Bond, the registered owner or owners thereof appearing in the bond register maintained by the Registrar or any Beneficial Owner (as hereinafter defined) thereof, if such Beneficial Owner provides to the Registrar evidence of such beneficial ownership in form and substance reasonably satisfactory to the Registrar. As used herein, Beneficial Owner means, in respect of a Bond, any person or entity which (i) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, such Bond (including persons or entities holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of the Bond for federal income tax purposes. 16 (b) Information To Be Disclosed. The City will provide, in the manner set forth in subsection (c) hereof, either directly or indirectly through an agent designated by the City, the following information at the following times: (1) on or before 365 days after the end of each fiscal year of the City, commencing with the fiscal year ending December 31,2002, the following financial information and operating data in respect ofthe City (the Disclosure Information): (A) the audited financial statements of the City for such fiscal year, containing balance sheets as of the end of such fiscal year and a statement of operations, changes in fund balances and cash flows for the fiscal year then ended, showing in comparative form such figures for the preceding fiscal year of the City, prepared in accordance with generally accepted accounting principles promulgated by the Financial Accounting Standards Board as modified in accordance with the governmental accounting standards promulgated by the Governmental Accounting Standards Board or as otherwise provided under Minnesota law, as in effect from time to time, or, if and to the extent such financial statements have not been prepared in accordance with such generally accepted accounting principles for reasons beyond the reasonable control of the City, noting the discrepancies therefrom and the effect thereof, and certified as to accuracy and completeness in all material respects by the fiscal officer of the City; and (B) to the extent not included in the financial statements referred to in paragraph <A) hereof, the information for such fiscal year or for the period most recently available of the type contained in the Official Statement under the headings: Current Property Valuations; Direct Debt; Tax Levies and Collections; Population Trend and Employment/Unemployment, which information may be unaudited. Notwithstanding the foregoing paragraph, if the audited financial statements are not available by the date specified, the City shall provide on or before such date unaudited financial statements in the format required for the audited financial statements as part of the Disclosure Information and, within 10 days after the receipt thereof, the City shall provide the audited financial statements. Any or all of the Disclosure Information may be incorporated by reference, ifit is updated as required hereby, from other documents, including official statements, which have been submitted to each of the repositories hereinafter referred to under subsection (c) or the SEC. If the document incorporated by reference is a final official statement, it must be available from the Municipal Securities Rulemaking Board. The City shall clearly identify in the Disclosure Information each document so incorporated by reference. If any part of the Disclosure Information can no longer be generated because the operations of the City have materially changed or been discontinued, such Disclosure Information need no longer be provided if the City includes in the Disclosure Information a statement to such effect; provided, however, if such operations have been replaced by other City operations in respect of which data is not included in the Disclosure Information and the City determines that certain specified data regarding such 17 replacement operations would be a Material Fact (as defined in paragraph (2) hereof), then, from and after such determination, the Disclosure Information shall include such additional specified data regarding the replacement operations. If the Disclosure Information is changed or this section is amended as permitted by this paragraph (b)(I) or subsection (d), then the City shall include in the next Disclosure Information to be delivered hereunder, to the extent necessary, an explanation of the reasons for the amendment and the effect of any change in the type of financial information or operating data provided. (2) In a timely manner, notice of the occurrence of any ofthe following events which is a Material Fact (as hereinafter defined): (A) Principal and interest payment delinquencies; (B) Non-payment related defaults; (C) Unscheduled draws on debt service reserves reflecting financial difficulties; (D) Unscheduled draws on credit enhancements reflecting financial difficulties; (E) Substitution of credit or liquidity providers, or their failure to perform; (F) Adverse tax opinions or events affecting the tax-exempt status of the security; (G) Modifications to rights of security holders; (H) Bond calls; (I) Defeasances; (1) Release, substitution, or sale of property securing repayment of the securities; and (K) Rating changes. As used herein, a Material Fact is a fact as to which a substantial likelihood exists that a reasonably prudent investor would attach importance thereto in deciding to buy, hold or sell a Bond or, if not disclosed, would significantly alter the total information otherwise available to an investor from the Official Statement, information disclosed hereunder or information generally available to the public. Notwithstanding the foregoing sentence, a Material Fact is also an event that would be deemed material for purposes of the purchase, holding or sale of a Bond within the meaning of applicable federal securities laws, as interpreted at the time of discovery ofthe occurrence of the event. (3) In a timely manner, notice ofthe occurrence of any ofthe following events or conditions: (A) the failure of the City to provide the Disclosure Information required under paragraph (b )( 1) at the time specified thereunder; (B) the amendment or supplementing of this section pursuant to subsection (d), together with a copy of such amendment or supplement and any explanation provided by the City under subsection (d)(2); (C) the termination ofthe obligations ofthe City under this section pursuant to subsection (d); 18 (D) any change in the accounting principles pursuant to which the financial statements constituting a portion ofthe Disclosure Information are prepared; and (E) any change in the fiscal year of the City. (c) Manner of Disclosure. The City agrees to make available the information described in subsection (b) to the following entities by telecopy, overnight delivery, mail or other means, as appropriate: (1) the information described in paragraph (1) of subsection (b), to each then nationally recognized municipal securities information repository under the Rule and to any state information depository then designated or operated by the State of Minnesota as contemplated by the Rule (the State Depository), if any; (2) the information described in paragraphs (2) and (3) of subsection (b), to the Municipal Securities Rulemaking Board and to the State Depository, if any; and (3) the information described in subsection (b), to any rating agency then maintaining a rating of the Bonds at the request of the City and, at the expense of such Bondowner, to any Bondowner who requests in writing such information, at the time of transmission under paragraphs (1) or (2) of this subsection (c), as the case may be, or, if such information is transmitted with a subsequent time of release, at the time such information is to be released. (d) Term~ Amendments~ Interpretation. (1) The covenants of the City in this section shall remain in effect so long as any Bonds are Outstanding. Notwithstanding the preceding sentence, however, the obligations of the City under this section shall terminate and be without further effect as of any date on which the City delivers to the Registrar an opinion of Bond Counsel to the effect that, because of legislative action or final judicial or administrative actions or proceedings, the failure of the City to comply with the requirements of this section will not cause participating underwriters in the primary offering of the Bonds to be in violation of the Rule or other applicable requirements ofthe Securities Exchange Act of 1934, as amended, or any statutes or laws successory thereto or amendatory thereof. (2) This section (and the form and requirements ofthe Disclosure Information) may be amended or supplemented by the City from time to time, without notice to (except as provided in paragraph (c )(3) hereof) or the consent of the Owners of any Bonds, by a resolution ofthis Council filed in the office ofthe recording officer of the City accompanied by an opinion of Bond Counsel, who may rely on certificates of the City and others and the opinion may be subject to customary qualifications, to the effect that: (i) such amendment or supplement (a) is made in connection with a change in circumstances that arises from a change in law or regulation or a change in 19 the identity, nature or status of the City or the type of operations conducted by the City, or (b) is required by, or better complies with, the provisions of paragraph (b)( 5) ofthe Rule; (ii) this section as so amended or supplemented would have complied with the requirements of paragraph (b)(5) ofthe Rule at the time of the primary offering of the Bonds, giving effect to any change in circumstances applicable under clause (i)(a) and assuming that the Rule as in effect and interpreted at the time of the amendment or supplement was in effect at the time of the primary offering; and (iii) such amendment or supplement does not materially impair the interests of the Bondowners under the Rule. If the Disclosure Information is so amended, the City agrees to provide, contemporaneously with the effectiveness of such amendment, an explanation of the reasons for the amendment and the effect, if any, ofthe change in the type of financial information or operating data being provided hereunder. (3) This section is entered into to comply with the continuing disclosure provisions of the Rule and should be construed so as to satisfy the requirements of paragraph (b)(5) ofthe Rule. Upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon the resolution was declared duly passed and adopted. 20 COUNTY AUDITOR'S CERTIFICATE AS TO REGISTRATION AND TAX LEVY The undersigned, being the duly qualified and acting County Auditor of Dakota County, Minnesota, hereby certifies that there has been filed in my office a certified copy of a resolution duly adopted on May 19, 2003, by the City Council of the City of Farmington, Minnesota, setting forth the form and details ofan issue of $3,740,000 General Obligation Improvement Bonds, Series 2003A, dated as of June 1,2003. I further certify that the issue has been entered on my bond register and the tax required by law for their payment has been levied and filed as required by Minnesota Statutes, Sections 475.61 to 475.63. WITNESS my hand officially this _ day of ,2003. Dakota County Auditor (SEAL) City of Farmington, MN Results of Bond Sale May 19, 2003 $3,740,000,000 General Obligation Improvement Bonds, Series 2003A Low Bidder True Interest Rate Number of Bids Legg Mason Wood Walker, Inc. 3.3244% 8 Rating Range of Bids Total Debt Service Estimated * Aaa (Insured by MBIA) 3.3244% - 3.4433% Results of Sale Principal Amount Discount Allowance Coupon Interest Expense Coupon Rates True Interest.Rate Cost of Issuance $3,740,000 $44,880 $1,581,959 4.322% 4.4378% $38,000 $3,740,000 $40,335 $1,175,773 3.212% 3.3244% $34,671 Council Action Adopt "Resolution Authorizing Issuance, Awarding Sale, Prescribing The Form And Details and Providing For The Payment Of $3,740,000 General Obligation Improvement Bonds, Series 2003A" *Based on the April 21, 2003 estimates, the low bid is $406,186 less than estimated interest costs, $4,545 less in discount, and $3,329 less in cost of issuance costs. Attachments . Bid Tabulation . Revised Debt Schedule . 18 Month Graph, Bond Market BID TABULATION $3,740,000 General Obligation Improvement Bonds, Series 2003A CITY OF FARMINGTON, MINNESOTA SALE: May 19, 2003 AWARD: lEGG MASON WOOD WALKER, INC. RATING: MBIA Insured (Moody's Investors Service "Aaa")* BBI: 4.35% NAME OF BIDDER PRICE MATURITY (February 1) RATE REOFFERING YIELD NET INTEREST COST TRUE INTEREST RATE LEGG MASON WOOD WALKER, INC. Minneapolis, Minnesota HARRIS TRUST & SAVINGS BANK Chicago, Illinois First Tennessee Capital Markets Isaak Bond Investments Inc. The Bankers Bank Kirlin Securities, Inc. Axelrod Associates, Inc. 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 *MBIA Insurance purchased by Legg Mason Wood Walker, Inc. 2.000% 2.250% 2.500% 2.750% 2.750% 2.850% 2.950% 3.000% 3.100% 3.250% 3.350% 3.450% 3.550% 3.650% 2.000% 2.250% 2.500% 2.500% 3.000% 3.000% 3.000% 3.100% 3.200% 3.250% 3.350% 3.450% 3.500% 3.600% $3,699,665.24 $1,216,108.09 3.3244% 1.350% 1.750% 2.050% 2.350% 2.650% 2.850% 2.950% 3.050% 3.150% 3.300% 3.400% 3.500% 3.600% 3.700% $3,701,781.00 $1,218,945.67 3.3326% e EHLERS & ASSOCIATES INC LEADERS IN PUBLIC FINANCE 3060 Centre Pointe Drive, Roseville, MN 55113-1105 651.697.8500 fax 651.697.8555 www.ehlers.inc.com Offices in Roseville, MN, Brookfield, WI and Naperville, IL $3,740,000 General Obligation Improvement Bonds, Series 2003A City of Farmington, Minnesota Page: NAME OF BIDDER PRICE NET TRUE INTEREST INTEREST COST RATE MATURITY RATE REOFFERING (February 1) YIELD GRIFFIN, KUBIK, STEPHENS & THOMPSON, INC. Chicago, Illinois CRONIN & COMPANY, INC. Minneapolis, Minnesota CITIGROUP GLOBAL MARKETS, INC. Chicago, Illinois UBS PAINEWEBBER, INC. Chicago, Illinois MORGAN STANLEY OW, INC. Chicago, Illinois CIBC WORLD MARKETS New York, New York CITIZENS BANK Flint, Michigan FIRST TRUST PORTFOLIOS L.P. Lisle, Illinois WILLIAM R. HOUGH & CO. St. Petersburg, Florida SUNTRUST CAPITAL MARKETS, INC. Atlanta, Georgia STEPHENS INC. Nashville, Tennessee 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2.000% 2.000% 2.500% 3.000% 3.000% 3.000% 3.000% 3.000% 3.125% 3.250% 3.300% 3.400% 3.500% 3.600% 2006 2.000% 2007 2.000% 2008 2.500% 2009 2.500% 2010 3.000% 2011 3.000% 2012 3.000% 2013 3.000% 2014 3.100% 2015 3.250% 2016 3.400% 2017 3.500% 2018 3.600% 2019 3.700% 2006 3.000% 2007 3.000% 2008 3.000% 2009 3.000% 2010 3.000% 2011 3.000% 2012 3.000% 2013 3.000% 2014 3.100% 2015 3.200% 2016 3.300% 2017 3.400% 2018 3.500% 2019 3.600% $3,695,777.85 $1,220,680.59 3.3418% $3,697,847.80 $1,229,710.53 3.3614% $3,702,981.25 $1,229,918.75 3.3697% $3,740,000 General Obligation Improvement Bonds, Series 2003A City of Farmington, Minnesota Page ~ NAME OF BIDDER PRICE NET TRUE INTEREST INTEREST COST RATE MATURITY RATE REOFFERING (February 1) YIELD u.s. BANCORP PIPER JAFFRAY Minneapolis, Minnesota WELLS FARGO BROKERAGE SERVICES LLC Minneapolis, Minnesota NORTHLAND SECURITIES, INC. Minneapolis, Minnesota Commerce Bank, N.A. RBC DAIN RAUSCHER INC. Minneapolis, Minnesota 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2.750% 2.750% 2.750% 2.750% 2.750% 2.800% 2.875% 3.000% 3.150% 3.250% 3.400% 3.500% 3.600% 3.700% 2006 2.300% 2007 2.300% 2008 2.300% 2009 2.300% 2010 2.600% 2011 2.850% 2012 3.000% 2013 3.100% 2014 3.250% 2015 3.350% 2016 3.500% 2017 3.600% 2018 3.700% 2019 3.800% 2006 2.125% 2007 2.375% 2008 2.500% 2009 2.500% 2010 2.650% 2011 2.850% 2012 3.000% 2013 3.150% 2014 3.300% 2015 3.400% 2016 3.500% 2017 3.600% 2018 3.700% 2019 3.800% $3,700,730.00 $1,233,954.91 3.3751 % $3,695,120.00 $1,251,427.50 3.4187% $3,695,988.85 $1,260,075.72 3.4433% City of Farmington, MN $3,740,000 G.o. Bonds, Dated June 1, 2003 SOURCES & USES Dated 06/01/2003 Delivered 06/01/2003 SOURCES OF FUNDS Par Amount of Bonds......................................................................... $3,740,000.00 Planned Issuer Equity contribution..................................................... 1.771.500.00 Interest Earnings on Project Construction Fund................................. 39,566.18 TOTAL SOURCES................... ................... ..... ................................. $5,551.066.18 USES OF FUNDS Total Underwriter's Discount (1.078%).............................................. Costs of Issuance.. .......... .... ..... ....... ..... ....... ... ... ................. ........ ....... Deposit to Capitalized Interest (CIF) Fund......................................... Deposit to Project Construction Fund................................................. Rounding Amount................... ........ .......... .... ...... ............................ ... 40,334.76 34,671.17 186,029.18 5,290,000.00 31.07 TOTAL USES.................................................................................... $5,551,066.18 Ehlers & Associates, Inc. Leaders in Public Finance since 1955 03 $5,290K net 15 yr sale- SINGLE PURPOSE 5119/2003 12:25 PM Page 1 City of Farmington, MN $3,740,000 G.O. Bonds, Dated June 1, 2003 NET DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P+I CIF Net New D/S FISCAL TOTAL 6/01/2003 - - - - - - - 2/01/2004 - - 75,453.33 75,453.33 (75,453.33) - - 8/01/2004 - - 56,590.00 56,590.00 (56,590.00) - - 2/01/2005 - - 56,590.00 56,590.00 (56,590.00) - - 8/01/2005 - - 56,590.00 56,590.00 - 56,590.00 - 2/01/2006 215,000.00 2.000% 56,590.00 271,590.00 - 271,590.00 328,180.00 8/01/2006 - - 54,440.00 54,440.00 - 54,440.00 - 2/01/2007 215,000.00 2.250% 54,440.00 269,440.00 - 269,440.00 323,880.00 8/01/2007 - - 52,021.25 52,021.25 - 52,021.25 - 2/01/2008 225,000.00 2.500% 52,021.25 277,021..25 - 277,021.25 329,042.50 8/01/2008 - - 49,208.75 49,208.75 - 49,208.75 - 2/01/2009 230,000.00 2.750% 49,208.75 279,208.75 - 279,208.75 328,417.50 8/01/2009 - - 46,046.25 46,046.25 - 46,046.25 - 2/01/2010 235,000.00 2.750% 46,046.25 281,046.25 - 281,046.25 327,092.50 8/01/2010 - - 42,815.00 42,815.00 - 42,815.00 - 2/01/2011 245,000.00 2.850% 42,815.00 287,815.00 - 287,815.00 330,630.00 8/01/2011 - - 39,323.75 39,323.75 - 39,323.75 - 2/01/2012 255,000.00 2.950% 39,323.75 294,323.75 - 294,323.75 333,647.50 8/01/2012 - - 35,562.50 35,562.50 - 35,562.50 - 2/01/2013 265,000.00 3.000% 35,562.50 300,562.50 - 300,562.50 336,125.00 8/01/2013 - - 31,587.50 31,587.50 - 31,587.50 - 2/01/2014 275,000.00 3.100% 31,587.50 306,587.50 - 306,587.50 338,175.00 8/01/2014 - - 27,325.00 27,325.00 - 27,325.00 - 2/01/2015 290,000.00 3.250% 27,325.00 317,325.00 - 317,325.00 344,650.00 8/01/2015 - - 22,612.50 22,612.50 - 22,612.50 - 2/01/2016 300,000.00 3.350% 22,612.50 322,612.50 - 322,612.50 345,225.00 8/01/2016 - - 17,587.50 17,587.50 - 17,587.50 - 2/01/2017 315,000.00 3.450% 17,587.50 332,587.50 - 332,587.50 350,175.00 8/01/2017 - - 12,153.75 12,153.75 - 12,153.75 - 2/01/2018 330,000.00 3.550% 12,153.75 342,153.75 - 342,153.75 354,307.50 8/01/2018 - - 6,296.25 6,296.25 - 6,296.25 - 2/01/2019 345,000.00 3.650% 6,296.25 351,296.25 - 351,296.25 357,592.50 Total 3,740,000.00 - 1,175,773.33 4,915,773.33 (188,633.33) 4,727,140.00 - Ehlers & Associates, Inc. :\MUNEX\MN CityCntyIFARMINGTON.SF-Ser 03 $5, 290K net 15 yr sale- SINGLE PURPOSE Leaders in Public Finance since 1955 5/19/200312:25 PM Page 3 ~L------ ~ - ~;:J2. - ~ ~ - '<;;f" '<;;f" ~ - - - ~ ~ ~ - ~ - ~ - - - - - - - - ~ 0 s:: ~ t-- 0 ~ Q) - - tIl ca ca L. ~ m - m tIl '('"'" Q) N .r: t- "i: 0- ~ ~ III ~ (:) C") 1:1~ t:: 0 en It) ~ >< <ll 1:1 oS 1:1 G) t:: 0 en <ll a ::J t:: <:: <ll ;:. <ll - a:: a ~ <:: III 0 ~ (:) en ('I 1:1~ t:: 0 en (:) ~ >< <ll 1:1 oS .... <ll ::.. :J en 1:1 t:: 0 en M 0 0 N >. 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F --""""'" I I ~ o (') l!) -- m aJ ~ o .,.; ~ a (J) -i ~ a t-- "<t --- ~ a lO '<f" ~ -< ~2 -0 ~-< ~o -z ~ o o (') '<f" -+-' '- ro .J:: o S oe5 ro I ro ro (") o o N -- (j) ..... -- 10 (f) <1) ro T5 o (f) Ul <C "D C ro (f) '- ~ .J:: W >, .0 "D <1) '- ro a. <1) '- 0... / c:? .b CAMPBELL KNUTSON Professional Association Attorneys at Law Thomas J. Campbell Roger N. Knutson Thomas M. Scott Elliott B. Knetsch Joel J. Jamnik Andrea McDowell Poehler Matthew K. Brokl* (651) 452-5000 Fax (651) 452-5550 John F. Kelly Matthew J. Foli Soren M. Mattick Marguerite M. McCarron Gina M. Brandt * Also licensed in Wisconsin May 14, 2003 To: City 1:0 il From: Jo~ ik , Subject: City Administrator Review At the last council meeting, the council had a brief discussion regarding Mr. Shukle's upcoming performance review. This memo is intended to provide the Council with additional background for continued discussions regarding the timing and manner of the Administrator's performance reVIew. The City Code, Section 1-7-2 provides that "the City Administrator shall be appointed for an indefinite period of time and shall be paid for his or her services at such a salary as the City Council deems appropriate." While Section 1-7-3 of the Code assigns to the Administrator the primary responsibility for reviewing the performance and suggesting changes to terms and conditions of employment for all other city employees, the Code and past Councils have retained a role for the Council in annually reviewing and evaluating the performance of the City Administrator and making any adjustments to his/her terms and conditions of employment. For several years the City Council has used an Appraisal of Performance Form that establishes performance standards for eight major areas of responsibility and employs a three tier rating system to assess the administrator's performance. A copy of the survey instrument is attached. Each year, two or three months before the administrator's anniversary date, I send a copy of the survey to each councilmember to complete. The completed forms, which are classified under the State Data Practices Act as private data (available for review by the data subject, city council and any staff involved in the review but by no other person) are returned to me. Even though the administrator is legally entitled to review the individual reports, it is not customary that he/she does so. I then consolidate the reports into a single report with a cover sheet that summarizes the average numerical rating for each of the eight major areas or responsibility along with the raw scores and narrative comments, suggestions, and commendations provided by each councilmember. That combined report then forms the basis for a closed meeting of the City Council at which time the results are discussed by the Council and Administrator as well as any suggested changes to job duties, performance goals or terms and conditions of employment. A summary of this Suite 317 · Eagandale Office Center · 1380 Corporate Center Curve · Eagan, MN 55121 meeting is prepared and made public, usually at the time any formal council action is taken on changes to salary or benefits ofthe Administrator. Given Mr. Shukle's anniversary date of September, this year's review process is scheduled to be conducted beginning in July, unless the Council directs otherwise. 2 APPRAISAL OF PERFORMANCE ,-- Position: Date: Evaluation of City Admini~tor Explanations and Directions Perfonnance Evaluation as Team Building .............................................................................................. Evaluation as Team Building If evaluation is to be, in the truest sense. a means of team building, certain conditioos must prevail. The two processes must be compatible and interrelated in the following ways: 1. Evaluation is basically a means. not an end in itself. . 2. The trust level between the eva1uatee md evaluators must be high. 3. The roles each arc to fulfill must be clearly indicated and accepted. 4. Responsibilities arc matched with pre-determin.ed standatd.s of nerformance. Defmition of Roles A. Policy Board 1. Conduct annual assessments of performance of the City Mministrator. 2. Respect the prerogatives of the City Administrator insofar as operational man.agemeot function of of the organization is concemed and the policy function of the Council. 3. Make assessments in feneral terms except in instances whece specific improvements are needed or when explicit commPndaUooS are due. B. City Administrator 1. Accepts the prospects of annual evaluations. 2. Understands the scope and thrust of the evaluations. 3. Expects the evaluations to adhere to the eStablished procedutes for evaluating the perfonnance of the City Administrator. Pre-Detennined Performance Standards A performance standard is defined as the condition that will exist when a responsibility of function is successfully performed. It is essential that a performance standard be establisbed, at the outset, for each of the eight major areas of responsibility of the City Administrator. This is necessary in order to use the rating scale effectively. Major Areas of Responsibility It should be reiterated that in determining the appropriate level of expectations. actual performance must be measured in relation to the indicated standard of performance. Eight major areas of responsibility are identified as the basis upon which assessments are to be made. Descriptions are provided under each to clarify the meaning and content of the area. However. the evaluation is made of the major area. RatiDg Symbols 11uec rating symbols arc used to make the assessmeDt~ as follows: .E = ~ Expectations (performance bas been above reasonable expectations.) M = Meets ~tions (performance bas attained a level of reasonable expectations.) B = Below E~tions (Pcd'ormanc:c has been below reasoaable expectations.) As indicated earlier. without more precise definition of the term "expectations-, it is possible that ambiguity will result in the use of the term. In order to help avoid this possibility, the concept of performanc:c standan:Is is used. It will be noted that in connection with each ~or area. a performance standard is stated. including the conditions that have to be met in order to decide the extent to which -expectations- have been met. Eight Major Areas of Responsibility I. Organizatioaal Management n. FiscallBusiness Management m. Progmn Development and Follow-Through IV. Relatiooship with the Council V. Long-Range PbnDing VI. Relationship with Public and Private Sector Organizations vn. Interagency Relations vm. ProfessiooaIJPersoaal Development .i!!mg ResoonsibiIitv . Perlonnance Standard ---E M I. Organiz3tiooal Management Orgmizatioual Management- will be CODSidered effective a majority of the conditioos have been successfully fulfilled: ---R Evaluation and keeping up with technology. L Well qualified. promi$ing persons arc recruited and employed. b. Employees are appropriatdy placed. contributing to a high retention rate. c. SupeMsoty techniques motivate high performance. d. Complaints to the Council arc not common. e. The organization is aware of new trends in technology. Plans and organizes the work that goes into providing services established by. past and current decisioas of the Council. Plans and organizes work that carries out policies adopted by the Council and developed by staff. Selecting, leading, directing and developing staff members. Comments: Observations of Evaluators: (Use this space also to indicate the impact upon the teamwork factor) SUl!l!eStionsfor Imnrovement: (Specific area(s) that need strengthening) Commendations: (Area(s) of performance calling for praiselCOlDQ1l",J1dation) Commt'Jl'lts from the City Administrator: RatinS[ Resoonsibilitv Performance Standard _E _M _B II. Fisca1/Business Management Fisca1IBusiness Managemcut will be considered effective when a majority of the conditions have been success- fully fulfilled: Plans and organizes a system of reports for the Council that provide most up-tcHIate data available concerning expenditures and revenue. L Budget preparation and management are thorough and effective. b. Cost-effective measures are persisteatly pursued. c. FipllMtl reporting is timely and readily undetstmdablc. d. Physical facilities management is efficient. e. AD. adequate data base is established and maintained. Plans and organizes the prep- &lion of an annual budget with ~nnentation. de. that conforms to guidc1i.nes adopted by the Council. Plans, organizes and supervises most economic utilization of man powcr/materia1sImacbinety . Plans and organizes ~lIintl'!ftllnce of faciliticslbuildings/cquipment. Comments: Observations of Evaluators: (use this space also to indicate the impact upon the teamworlc factor) SU22eStions for Imnrovement: (Specific area(s) that need strengthening) Commendations: (Area(s) of performance calling for praise/commendation) Comments from the City Administrator: ~ _E _M _B ResDOnsibilitv Perfonnance Standard .m. Program. Development Program plaDDing techniques and procedures will be c::oasideRd effective when L majority of the conditions have been successfully fulfilled: . Maintains knowledge of current and innovative trends in the area of services being provided and incorporates that knowledge in program suggestioos and research. a. Ongoing programs and services are fully respoosi.ve to the organizatiOn's needs. b. Monitoring procedures are in place and fimc:tioaing well. c. Measurable outcomes (to the extent possible) are used to determine success in program planning. d. The City Administrator can be depended upon to follow through. e. Makes most effective use of available Staff taleoL Plans and organizes on-going programs and services to the organization. Plans and organizes work involved in &-,*ChiDg program suggesUoos by Council.and Staff 8Iid the reporting of the results of analysis. Plans and organizes work assigned by the CoUncil so that it is completed with dispatch and efficiency. Plans, organizes and supervises implementation of programs adopted or approved by the Council. Comments: Obsetvatioos of Evaluators: (use this space also to indicate the impact upon the teamwork factor) SuS!2eStions for Imorovement: (Specific area(s) that need strengthening) Commendations: (Area(s) of performance calling for praise/commendation) Comments from the City Administrator: RaMi! Resnonsibilitt perforrmmce Standard _E IV. Re1atioosbip with Council . Relations with the Council will.be considered effective wheI1 a majority of the conditions bavebeen fulfilled _M _B Plans and organizes materials for presentations to the Council. either verbally or written. in the most concise. clear and compreJ1eoslve iumncc possible. L Materials. reports. presentations and RCOlDJDeUdations are clearly and . convincingly made. b. Communications are made in a timely. forthright. and opeD. manner. Co Raponses to requests are made promptly and completely. d. Recommendations appear to be thoroughly researc:hed. - e. Adequate information is provided to the Council to make decisions. f. A system is in place to report to the Council current plaos, activities. and events. M.i1'ltllin!ll effective communi- cations, both verbal and writteo., with the Council. ~.jntllinc avai1ability to the Council eithet persooaI1y or through desiguated subordiDates. . Comments: Observations of Evaluators: (use this space also to indicate the impact upon the teamwork factor) Su~esti6ns for Imorovement: (Specific area(s) that need strengthening) Commendations: (Area(s) of performance calling for praise/commendation) Comments from the City Administrator: Ratin2 ll~sibi)ity perfonnance Standard ~E V. Long Range Planning Strategic plaoning will be coosidered effective when .. majority of the COnditiODS have been successfully fulfilled: _M _B Maintains a knowledge of now technologies systems. methods. de. in relation to services offeted. a. A well coostructed.long-range (strategic) plan is curreudy in operation. b. Annual operatioaal plans are . carried out c. An on-going moaitoring process is in operation to attain aualitv ~ in program. and project impl~tation. Keeps the Council advised of new and impending legislation md developments in the area of public policy. d. Program evaluation and persoane1 evaluation are iIlt:er-re1atecl with the strategic planning process. e. A marketing strategy is developed md monitored. Plaus md organizes a process of program planning in anticipation of future needs md problems. Establishes md mainhlin!;: m awareness of developments occurring within othet testing centers or othet jurisdictions that may have an impact on City activities. Plans. organizes and maintains . process for establishing goals to be approved or adopted by the Council and monitoring and statUS reporting. Coll1Jl1ents: Observations of Evaluators: (use this space also to indicate the impact upon the teamwork: factor) Su~~ons for Imnrovement: (Specific area(s) that need strengthening) Commendations: (Area(s) of performance calling for praise/commendation) Comments from the City Administrator: Ratinl! _E _M _B Comments: ResoonsibiIitv VI. Relatioasbip with Publici Public Relations p~ organizes and maintains training of employees in COD!act with the public, either by phone or in person. Establishes aod _intJain!il an image to the colJJlDUDity that represents service, vitality and professi(Xlllli$ftl. Establishes and maintains a liaison with private DOO-gOVerDJD"fttllll agencies, otgllllil:atiaas aod groups involved in areas of concern that relate to services or activities of the City. PerfOl1ll3nce Standard :..... Communication semces will be consideied effective when a. ugority of the coaditions have been sw:cessfUlly fulfilled. L Coa~ with the media are timely and credible. . b. PublicatioDS are varied and l'nfta!:tP.ntIy we1l-received by the citizeus~ c. Feedback from the public and the comft'l1mity leadership is positive. d The City has a good image with comparable organizations. . Observations of Evaluators: (use this space also to indicate the impact upon the teamwork factor) Co11UDeD,ts from the City Administrator: Su~~estioDS for Immovement: (Specific area(s) that need strengthening) Commendations: (Area(s) of performance calling for praiselCOlDDlCndation) Ratitl2 .E - _M ~B Comme:nts: Resooosibilitv VII.. Intetagency Relations Maintains awareness of developments and plans in other jurisdictions that may relate to or affect the City. Establishes and mlIiftt.illc a liaison with other' agencies in those areas of service that improve or I'.fth_the City's programs. ~UJUlillc C01nmuDil".llUoos With govem- meDta1 jurisdictions with which the City is involved or iaterfaces. Performance Standard IntetgovemmcIltal re1atiODS will be ~ effective wbeIi a ~ty of the conditions have beeIl successfully fulfilled: . a. Sufficient activity with professiooal orgaoizatioos. b. Regarded as leader by agency officials. c. Provides examples of good ideas from other jurisdictiODS. cLPositive relationship with other agencies. e. Good cooperation with cities, counties, and state agencies. f. Good relationship with universities and colleges. ObscrvatiODS of Evaluators: (use this space also to indicate the impact upon the teamwork factor) SU22eStions for JIDDrovement: (Specific area(s) that need strengthening) Commendations: (Area(s) of pecfonnance calling for praiselC()ft'Ift'II'.nilation) Commt'!ftts from the City Administrator: '. , RatioS!' Resoonsibilitv Performan<:e Standard ..E M vm. ProfessiooallPersooal Developmcot Professiooal and pcrsoua1 competencies will be considered effective when a majority of the conditioas have been swxessfuUy fUlfilled. B M_inhlml: awareness and value of ~i~g professional aad pcrsoua1 dcve1opma1L L Management teclmiques show evidences of innovati~ imaginatiOll ad dccisivcacss. b. Synergetic techniques are fostered. c. Verbal communication is co~.h1e. Demoastrates imaginative .leadership initiatives. Ability to build cohesiveness in Staff. Decisiveness in leadetsbip performance. Effectiveness in verbal communications. Comments: observations of Evaluators: (use this space also to indicate the impact upon the tearJ1WOdc factor) SUS!'S!'CStions for Imnrovement: (Specific area(s) that need strengtbeoing) Commendations: (Area(s) of performance calling for praise/commendation) Comments from the City Administrator. ,