Minutes of the special meeting of the City Council of Apple Valley, Dakota County, Minnesota, held February 20th, 2003, at 4:30 o'clock p.m., at Apple Valley Municipal Center.

PRESENT: Mayor Hamann-Roland; Councilmembers Bergman, Erickson, Goodwin, and Grendahl.

ABSENT: None.

City staff members present were: City Administrator Lawell, Deputy City Clerk Murphy, City Attorney Dougherty, Police Captain Anglin, Finance Director Ballenger, Assistant to the City Administrator Grawe, and Public Works Director Heuer.

Mayor Hamann-Roland called the meeting to order at 4:30 p.m.

APPROVAL OF AGENDA

MOTION: of Bergman, seconded by Goodwin, approving the agenda for today's meeting as presented. Ayes - 5 - Nays - 0.

SALE OF CITY GENERAL OBLIGATION BONDS

Steve Mattson, of Northland Securities, fiscal consultant, was present and distributed offers to purchase general obligation bonds of the City in negotiated sales. He reviewed information on recent sales and noted the proposed refinancing of 1994 bonds will result in net savings of $69,614.76 to the City.

MOTION: of Goodwin, seconded by Erickson, adopting Resolution No. 2003-38 providing for the issuance and sale of the City's $5,380,000 General Obligation State Aid Road Bonds of 2003 to Northland Securities, Inc., at a net effective interest rate of 3.6845 percent, and authorizing execution of the necessary documents to complete the sale. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2003-39 providing for the issuance and sale of the City's $605,000 General Obligation Improvement Refunding Bonds of 2003 to Northland Securities, Inc., at a net effective interest rate of 2.8071 percent, and authorizing execution of the necessary documents to complete the sale. Ayes - 5 - Nays - 0.

CLOSE MEETING, GENNADIY BALANDIN CLAIM

Mr. Dougherty reviewed the provisions of M.S. 471.705 that allow the Council to close a meeting under attorney-client privilege. The purpose of a closed session is to consider a settlement agreement for the Gennadiy Balandin claim.

MOTION: of Bergman, seconded by Grendahl, to close the meeting and convene in closed session to discuss the Gennadiy Balandin claim under the attorney-client exception to the open meeting law. Ayes - 5 - Nays - 0.

The meeting was closed at 4:45 p.m. Mayor Hamann-Roland Councilmembers Bergman, Erickson, Goodwin, and Grendahl convened in the Regent Conference Room along with City Attorney Dougherty and City Administrator Lawell. The Council reconvened in open session at 5:30 p.m.

BALANDIN SETTLEMENT AGREEMENT

MOTION: of Goodwin, seconded by Grendahl, approving a mediated Settlement Agreement in the Gennadiy Balandin claim and authorizing execution of the necessary documents. Ayes - 5 - Nays - 0.

MOTION: of Erickson, seconded by Grendahl, to adjourn. Ayes - 5 - Nays - 0.

The meeting was adjourned at 5:32 o'clock p.m.